THE PARKSTONE GROUP OF FUNDS
ANNUAL REPORT
MAY 31, 2000
<PAGE>
PARKSTONE FUNDS
ANNUAL REPORT -- MAY 31, 2000
================================================================================
INTERNATIONAL DISCOVERY FUND
SMALL CAPITALIZATION FUND
EQUITY INCOME FUND
BALANCED ALLOCATION FUND
BOND FUND
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
LIMITED MATURITY BOND FUND
NATIONAL TAX EXEMPT BONDFUND
PRIME OBLIGATIONS FUND
TAX-FREE FUND
U.S. GOVERNMENT OBLIGATIONS FUND
TABLE OF CONTENTS
Financial Highlights ................................................... 2
Statements of Net Assets ............................................... 35
Statements of Operations ............................................... 68
Statements of Changes in Net Assets .................................... 70
Notes to Financial Statements .......................................... 75
Report of Independent Auditors ......................................... 87
Results of Proxy Voting ................................................ 88
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NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
-------------------------------------------------------------------------------
National City Investment Management Company serves as investment adviser to
Parkstone Funds for which it receives an investment advisory fee. Parkstone
Funds are distributed by SEI Investments Distribution Co. (SIDC), Oaks, PA
19456. SIDC is not affiliated with IMC and is not a bank. Mutual Funds
involve risks including possible loss of principal. Performance figures
quoted herein may be lower due to recent market volatility. For more complete
information about Parkstone Funds, including charges and expenses, please
contact your investment specialist or call 1-800-451-8377 for a prospectus.
Read it carefully before you invest or send money.
AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH THE MONEY MARKET FUND(S) SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN
THE FUND(S).
-------------------------------------------------------------------------------
ON JUNE 16, 2000, THE PARKSTONE GROUP OF FUNDS COMPLETED THEIR
REORGANIZATION. THESE FUNDS MERGED INTO CORRESPONDING ARMADA FUNDS AND NO
LONGER EXIST.
<PAGE>
Parkstone Funds
Financial Statements
FOR THE YEAR ENDED MAY 31, 2000
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE INTERNATIONAL DISCOVERY FUND
================================================================================
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND
--------------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
--------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
------------ ------------ -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ........ $ 14.81 $ 14.20 $ 15.03 $ 16.51 $15.98 $ 16.70
-------- -------- -------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment loss ...................... (0.08) (0.20) (0.04) (0.15) (0.27) (0.10)
Net realized and unrealized
gains (losses) on investments
and foreign currencies ................. 5.42 5.14 5.42 (0.68) (0.64) (0.70)
-------- -------- -------- ------- ------ --------
Total from Investment Activities ..... 5.34 4.94 5.38 (0.83) (0.91) (0.80)
-------- -------- -------- ------- ------ --------
DISTRIBUTIONS
Net realized gains ....................... (4.08) (4.08) (4.08) (0.87) (0.87) (0.87)
-------- -------- -------- ------- ------ --------
Total Distributions .................. (4.08) (4.08) (4.08) (0.87) (0.87) (0.87)
-------- -------- -------- ------- ------ --------
Net Asset Value, End of Period ........... $ 16.07 $ 15.06 $ 16.33 $ 14.81 $14.20 $ 15.03
========= ========= ======== ======= ====== ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) ..................... 35.68% 34.32% 35.43% (5.20)% (5.89)% (4.94)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ........... $ 22,589 $ 7,477 $281,145 $24,914 $7,604 $267,764
Ratio of expenses to average net assets ..... 1.77% 2.52% 1.52% 1.82% 2.57% 1.57%
Ratio of net investment loss to
average net assets ...................... (0.50)% (1.25)% (0.25)% (0.45)% (1.21)% (0.20)%
Portfolio turnover .......................... 132.50% 132.50% 132.50% 84.66% 84.66% 84.66%
</TABLE>
See Accompanying Notes
2
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE INTERNATIONAL DISCOVERY FUND
================================================================================
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND
---------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
---------------------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......... $ 16.25 $ 15.85 $16.21 $ 16.41 $ 14.01 $ 13.77 $14.08 $ 14.11
------- ------- ------ -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment loss .......... (0.09) (0.19) (0.17) (0.04) (0.07) (0.16) (0.15) (0.05)
Net realized and unrealized
gains on investments and
foreign currencies ......... 0.86 0.83 0.83 0.84 2.31 2.24 2.28 2.35
------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities ................. 0.77 0.64 0.66 0.80 2.24 2.08 2.13 2.30
------- ------- ------ -------- ------- ------- ------ --------
DISTRIBUTIONS
Net realized gains ........... (0.51) (0.51) (0.51) (0.51) -- -- -- --
------- ------- ------ -------- ------- ------- ------ --------
Total Distributions ......... (0.51) (0.51) (0.51) (0.51) -- -- -- --
------- ------- ------ -------- ------- ------- ------ --------
Net Asset Value,
End of Period ............... $ 16.51 $ 15.98 $16.36 $ 16.70 $ 16.25 $ 15.85 $16.21 $ 16.41
======= ======= ====== ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ...... 5.17%(a) 4.47%(a) 4.49%(a) 5.31%(a) 15.99% 15.11% 15.13% 16.34%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................. $43,268 $12,840 $1,026 $427,922 $48,557 $13,516 $ 875 $426,111
Ratio of expenses to average
net assets ................... 1.82%(b) 2.56%(b) 2.56%(b) 1.56%(b) 1.80% 2.55% 2.56% 1.55%
Ratio of net investment
loss to average net assets ... (0.75)%(b) (1.49)%(b) (1.48)%(b) (0.47)%(b) (0.54)% (1.29)% (1.28)% (0.29)%
Portfolio turnover .............. 34.15% 34.15% 34.15% 34.15% 45.18% 45.18% 45.18% 45.18%
<FN>
(A) NOT ANNUALIZED.
(B) ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes
3
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE INTERNATIONAL DISCOVERY FUND
================================================================================
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND
--------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
---------------------------------------------- ---------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......... $ 12.23 $12.15 $12.42 $ 12.33 $ 13.18 $ 13.21 $12.97 $ 13.24
------- ------ ------ -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income (loss) . (0.02) (0.08) (0.10) 0.02 0.03 (0.04) 0.03 0.04
Net realized and unrealized gains
(losses) on investments
and foreign currencies ..... 1.81 1.70 1.79 1.80 (0.36) (0.40) 0.04 (0.33)
------- ------ ------ -------- ------- ------- ------ --------
Total from Investment
Activities ................. 1.79 1.62 1.69 1.82 (0.33) (0.44) 0.07 (0.29)
------- ------ ------ -------- ------- ------- ------ --------
DISTRIBUTIONS
Net investment income ........ -- -- -- (0.02) -- -- -- --
Net realized gains ........... (0.01) -- (0.03) (0.02) (0.62) (0.62) (0.62) (0.62)
------- ------ ------ -------- ------- ------- ------ --------
Total Distributions ......... (0.01) -- (0.03) (0.04) (0.62) (0.62) (0.62) (0.62)
------- ------ ------ -------- ------- ------- ------ --------
Net Asset Value,
End of Period ............... $ 14.01 $13.77 $14.08 $ 14.11 $ 12.23 $ 12.15 $12.42 $ 12.33
======= ====== ====== ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ...... 14.65% 13.33% 13.62% 14.76% (2.19)% (3.03)% (1.15)%(c) (1.86)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................. $39,575 $9,489 $ 474 $364,095 $34,228 $ 5,469 $ 82 $264,759
Ratio of expenses to average
net assets ................... 1.80% 2.55% 2.50% 1.55% 1.78% 2.57% 2.32%(b) 1.56%
Ratio of net investment income
(loss) to average net assets . (0.11)% (0.86)% (0.84)% 0.12% 0.08% (0.49)% 1.74%(b) 0.31%
Ratio of expenses to average
net assets* .................. 1.88% 2.63% 2.62% 1.55% 1.91% 2.92% 3.27%(b) 1.59%
Portfolio turnover .............. 54.47% 54.47% 54.47% 54.47% 104.39% 104.39% 104.39% 104.39%
<FN>
* 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) ANNUALIZED.
(C) REPRESENTS TOTAL RETURN FOR THE INSTITUTIONAL SHARES FOR THE PERIOD FROM
JULY 1, 1994 TO NOVEMBER 15, 1994 PLUS THE TOTAL RETURN FOR THE INVESTOR C
SHARES FOR THE PERIOD FROM NOVEMBER 16, 1994 TO JUNE 30, 1995.
</FN>
</TABLE>
See Accompanying Notes
4
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE SMALL CAPITALIZATION FUND
================================================================================
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
-----------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
----------------------------------------- ---------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ...... $ 18.49 $ 17.78 $ 18.89 $ 25.72 $ 25.02 $ 26.15
-------- -------- -------- ------- ------- --------
INVESTMENT ACTIVITIES
Net investment loss .................... (0.23)* (0.39)* (0.17)* (0.34) (0.50) (0.23)
Net realized and unrealized
gains (losses) on investments ........ 8.59 8.27 8.76 (4.36) (4.21) (4.50)
-------- -------- -------- ------- ------- --------
Total from Investment Activities ... 8.36 7.88 8.59 (4.70) (4.71) (4.73)
-------- -------- -------- ------- ------- --------
DISTRIBUTIONS
Net realized gains ..................... (1.60) (1.60) (1.60) (2.53) (2.53) (2.53)
-------- -------- -------- ------- ------- --------
Total Distributions ................ (1.60) (1.60) (1.60) (2.53) (2.53) (2.53)
-------- -------- -------- ------- ------- --------
Net Asset Value, End of Period ......... $ 25.25 $ 24.06 $ 25.88 $ 18.49 $ 17.78 $ 18.89
======== ======== ======== ======= ======= ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) ................... 45.63% 44.74% 45.89% (18.92)% (19.52)% (18.71)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ......... $ 43,308 $ 18,454 $194,798 $57,813 $18,736 $226,139
Ratio of expenses to average net assets ... 1.58% 2.33% 1.33% 1.61% 2.37% 1.36%
Ratio of net investment loss to
average net assets .................... (0.93)% (1.68)% (0.68)% (1.07)% (1.82)% (0.82)%
Portfolio turnover ........................ 65.38% 65.38% 65.38% 99.86% 99.86% 99.86%
<FN>
* CALCULATED USING AVERAGE SHARES OUTSTANDING METHOD.
</FN>
</TABLE>
See Accompanying Notes
5
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE SMALL CAPITALIZATION FUND
================================================================================
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
---------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
------------------------------------------------- -----------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ........ $ 27.55 $ 26.99 $ 27.05 $ 27.91 $ 34.17 $ 33.78 $ 33.83 $ 34.50
-------- ------- ------- -------- -------- ------- ------- --------
INVESTMENT ACTIVITIES
Net investment loss ......... (0.35) (0.53) (0.49) (0.27) (0.29) (0.41) (0.34) (0.22)
Net realized and unrealized
losses on investments ..... (0.18) (0.14) (0.18) (0.19) (1.08) (1.13) (1.19) (1.12)
-------- ------- ------- -------- -------- ------- ------- --------
Total from Investment
Activities ................ (0.53) (0.67) (0.67) (0.46) (1.37) (1.54) (1.53) (1.34)
-------- ------- ------- -------- -------- ------- ------- --------
DISTRIBUTIONS
Net realized gains .......... (1.30) (1.30) (1.30) (1.30) (5.25) (5.25) (5.25) (5.25)
-------- ------- ------- -------- -------- ------- ------- --------
Total Distributions ........ (1.30) (1.30) (1.30) (1.30) (5.25) (5.25) (5.25) (5.25)
-------- ------- ------- -------- -------- ------- ------- --------
Net Asset Value,
End of Period .............. $ 25.72 $ 25.02 $ 25.08 $ 26.15 $ 27.55 $ 26.99 $ 27.05 $ 27.91
======== ======= ======= ======== ======== ======= ======= ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ..... (1.90)%(a) (2.47)%(a) (2.43)%(a) (1.62)%(a) (4.53)% (5.13)% (5.08)% (4.39)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................ $163,178 $41,399 $14,747 $527,805 $188,645 $46,895 $14,962 $602,787
Ratio of expenses to average
net assets .................. 1.60%(b) 2.35%(b) 2.35%(b) 1.35%(b) 1.57% 2.32% 2.32% 1.32%
Ratio of net investment
loss to average net assets .. (1.23)%(b) (1.99)%(b) (1.99)%(b) (0.99)%(b) (1.19)% (1.94)% (1.94)% (0.94)%
Portfolio turnover ............. 46.17% 46.17% 46.17% 46.17% 48.45% 48.45% 48.45% 48.45%
<FN>
(A) NOT ANNUALIZED.
(B) ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes
6
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE SMALL CAPITALIZATION FUND
================================================================================
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
----------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
------------------------------------------------ --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C(A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ....... $ 25.88 $ 25.79 $25.91 $ 26.08 $ 19.75 $19.83 $24.17 $ 19.83
-------- ------- ------- -------- ------- ------ ------ --------
INVESTMENT ACTIVITIES
Net investment loss ........ (0.23) (0.39) (0.20) (0.27) (0.18) (0.19) (0.05) (0.25)
Net realized and unrealized
gains on investments ..... 12.17 12.03 11.77 12.34 8.46 8.30 3.94 8.65
-------- ------- ------- -------- ------- ------ ------ --------
TOTAL FROM INVESTMENT
ACTIVITIES ............... 11.94 11.64 11.57 12.07 8.28 8.11 3.89 8.40
-------- ------- ------- -------- ------- ------ ------ --------
DISTRIBUTIONS
Net realized gains ......... (3.65) (3.65) (3.65) (3.65) (2.15) (2.15) (2.15) (2.15)
-------- ------- ------- -------- ------- ------ ------ --------
Total Distributions ....... (3.65) (3.65) (3.65) (3.65) (2.15) (2.15) (2.15) (2.15)
-------- ------- ------- -------- ------- ------ ------ --------
Net Asset Value,
End of Period ............. $ 34.17 $ 33.78 $33.83 $ 34.50 $ 25.88 $25.79 $25.91 $ 26.08
======== ======= ====== ======== ======= ====== ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) .... 49.93% 48.87% 48.32% 50.03% 44.88% 43.78% 44.37%(c) 45.32%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ............... $187,016 $30,310 $5,751 $528,866 $71,894 $9,990 $ 224 $354,825
Ratio of expenses to average
net assets ................. 1.54% 2.29% 2.29% 1.29% 1.55% 2.32% 3.53%(b) 1.33%
Ratio of net investment
loss to average net assets . (1.18)% (1.93)% (1.94)% (0.93)% (1.27)% (2.03)% (3.06)%(b) (1.06)%
Ratio of expenses to average
net assets* ................ -- -- -- -- 1.58% 2.55% 3.53%(b) 1.33%
Portfolio turnover ............ 67.22% 67.22% 67.22% 67.22% 50.53% 50.53% 50.53% 50.53%
<FN>
* 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) ANNUALIZED.
(C) REPRESENTS TOTAL RETURN FOR THE INSTITUTIONAL SHARES FOR THE PERIOD FROM
JULY 1, 1994 TO NOVEMBER 15, 1994 PLUS THE TOTAL RETURN FOR THE INVESTOR C
SHARES FOR THE PERIOD FROM NOVEMBER 16, 1994 TO JUNE 30, 1995.
</FN>
</TABLE>
See Accompanying Notes
7
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE EQUITY INCOME FUND
================================================================================
<TABLE>
<CAPTION>
EQUITY INCOME FUND
-------------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
-------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ...... $ 18.30 $ 18.15 $ 18.20 $ 18.78 $ 18.68 $ 18.69
------- ------- -------- ------- ------- --------
INVESTMENT ACTIVITIES
Net investment income .................. 0.18 0.09 0.21 0.22 0.09 0.27
Net realized and unrealized
gains (losses) on investments ........ (2.04) (2.04) (2.03) 1.76 1.75 1.75
------- ------- -------- ------- ------- --------
Total from Investment Activities ... (1.86) (1.95) (1.82) 1.98 1.84 2.02
------- ------- -------- ------- ------- --------
DISTRIBUTIONS
Net investment income .................. (0.21) (0.11) (0.24) (0.22) (0.13) (0.27)
Net realized gains ..................... (6.37) (6.37) (6.37) (2.24) (2.24) (2.24)
------- ------- -------- ------- ------- --------
Total Distributions ................ (6.58) (6.48) (6.61) (2.46) (2.37) (2.51)
------- ------- -------- ------- ------- --------
Net Asset Value, End of Period ......... $ 9.86 $ 9.72 $ 9.77 $ 18.30 $ 18.15 $ 18.20
======= ======= ======== ======= ======= ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) ................... (9.59)% (10.24)% (9.35)% 12.06% 11.22% 12.40%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ......... $42,143 $13,344 $181,444 $82,733 $22,456 $221,399
Ratio of expenses to average net assets ... 1.44% 2.19% 1.19% 1.59% 2.34% 1.34%
Ratio of net investment income to
average net assets .................... 1.42% 0.67% 1.67% 1.23% 0.48% 1.49%
Portfolio turnover ........................ 41.80% 41.80% 41.80% 51.09% 51.09% 51.09%
</TABLE>
See Accompanying Notes
8
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE EQUITY INCOME FUND
================================================================================
<TABLE>
<CAPTION>
EQUITY INCOME FUND
----------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
------------------------------------------------- -------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ...... $ 19.20 $ 19.14 $19.23 $ 19.13 $ 17.31 $ 17.27 $17.36 $ 17.30
-------- ------- ------ -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ..... 0.25 0.11 0.11 0.29 0.29 0.16 0.15 0.34
Net realized and unrealized
gains on investments .... 2.72 2.71 2.72 2.70 3.57 3.57 3.58 3.51
-------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities .............. 2.97 2.82 2.83 2.99 3.86 3.73 3.73 3.85
-------- ------- ------ -------- ------- ------- ------ --------
DISTRIBUTIONS
Net investment income ..... (0.21) (0.10) (0.09) (0.25) (0.28) (0.17) (0.17) (0.33)
Tax return of capital ..... (3.18) (3.18) (3.18) (3.18) (1.69) (1.69) (1.69) (1.69)
-------- ------- ------ -------- ------- ------- ------ --------
Total Distributions ...... (3.39) (3.28) (3.27) (3.43) (1.97) (1.86) (1.86) (2.02)
-------- ------- ------ -------- ------- ------- ------ --------
Net Asset Value,
End of Period ............ $ 18.78 $ 18.68 $18.79 $ 18.69 $ 19.20 $ 19.14 $19.23 $ 19.13
======== ======= ====== ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ... 17.08%(a) 16.28%(a) 16.22%(a) 17.31%(a) 23.81% 22.96% 22.86% 23.80%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) .............. $104,503 $27,767 $1,094 $281,395 $99,423 $21,038 $ 778 $315,878
Ratio of expenses to average
net assets ................ 158%(b) 2.33%(b) 2.33%(b) 1.33%(b) 1.58% 2.33% 2.33% 1.33%
Ratio of net investment income
to average net assets ..... 1.39%(b) 0.64%(b) 0.63%(b) 1.65%(b) 1.62% 0.88% 0.88% 1.89%
Portfolio turnover ........... 18.62% 18.62% 18.62% 18.62% 20.14% 20.14% 20.14% 20.14%
<FN>
(A) NOT ANNUALIZED.
(B) ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes
9
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE EQUITY INCOME FUND
================================================================================
<TABLE>
<CAPTION>
EQUITY INCOME FUND
------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
------------------------------------------------- ---------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C(A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ..... $ 14.49 $ 14.47 $14.54 $ 14.49 $ 13.50 $13.49 $13.38 $ 13.50
------- ------- ------ -------- ------- ------ ------ --------
INVESTMENT ACTIVITIES
Net investment income .... 0.30 0.19 0.19 0.34 0.36 0.26 0.11 0.39
Net realized and unrealized
gains on investments ... 3.27 3.25 3.27 3.26 1.00 0.99 1.17 1.00
------- ------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities ............. 3.57 3.44 3.46 3.60 1.36 1.25 1.28 1.39
------- ------- ------ -------- ------- ------ ------ --------
DISTRIBUTIONS
Net investment income .... (0.30) (0.19) (0.19) (0.34) (0.36) (0.26) (0.11) (0.39)
In excess of net investment
income ............... -- -- -- -- (0.01) (0.01) (0.01) (0.01)
Net realized gains ....... (0.45) (0.45) (0.45) (0.45) -- -- -- --
------- ------- ------ -------- ------- ------ ------ --------
Total Distributions ..... (0.75) (0.64) (0.64) (0.79) (0.37) (0.27) (0.12) (0.40)
------- ------- ------ -------- ------- ------ ------ --------
Net Asset Value,
End of Period ........... $ 17.31 $ 17.27 $17.36 $ 17.30 $ 14.49 $14.47 $14.54 $ 14.49
======= ======= ====== ======== ======= ====== ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) .. 25.05% 24.11% 24.17% 25.30% 10.32% 9.41% 9.71%(c) 10.55%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ............. $82,396 $12,590 $ 164 $337,318 $71,063 $7,131 $ 25 $346,164
Ratio of expenses to average
net assets ............... 1.57% 2.32% 2.32% 1.32% 1.54% 2.32% 2.30%(b) 1.32%
Ratio of net investment income
to average net assets .... 1.86% 1.11% 1.11% 2.11% 2.65% 1.86% 1.88%(b) 2.86%
Ratio of expenses to average
net assets* .............. -- -- -- -- 1.57% 2.57% 2.55%(b) 1.32%
Portfolio turnover .......... 40.75% 40.75% 40.75% 40.75% 77.70% 77.70% 77.70% 77.70%
<FN>
* 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) ANNUALIZED.
(C) REPRESENTS TOTAL RETURN FOR THE INSTITUTIONAL SHARES FOR THE PERIOD FROM
JULY 1, 1994 TO NOVEMBER 15, 1994 PLUS THE TOTAL RETURN FOR THE INVESTOR C
SHARES FOR THE PERIOD FROM NOVEMBER 16, 1994 TO JUNE 30, 1995.
</FN>
</TABLE>
See Accompanying Notes
10
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE BALANCED ALLOCATION FUND
================================================================================
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND
------------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .... $ 13.52 $13.52 $ 13.50 $ 13.82 $13.81 $ 13.80
------- ------ -------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ................ 0.26 0.15 0.30 0.27 0.18 0.31
Net realized and unrealized
gains on investments ............... 2.18 2.18 2.18 0.07 0.07 0.07
------- ------ -------- ------- ------ --------
Total from Investment Activities . 2.44 2.33 2.48 0.34 0.25 0.38
------- ------ -------- ------- ------ --------
DISTRIBUTIONS
Net investment income ................ (0.28) (0.17) (0.32) (0.27) (0.17) (0.31)
Net realized gains ................... (1.74) (1.74) (1.74) (0.37) ( 0.37) ( 0.37)
------- ------ -------- ------- ------ --------
Total Distributions .............. (2.02) (1.91) (2.06) (0.64) (0.54) (0.68)
------- ------ -------- ------- ------ --------
Net Asset Value, End of Period ....... $ 13.94 $13.94 $ 13.92 $ 13.52 $13.52 $ 13.50
======= ====== ======== ======= ====== ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) ................. 18.59% 17.69% 18.91% 2.47% 1.72% 2.73%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ....... $12,708 $4,910 $129,365 $15,760 $5,723 $177,203
Ratio of expenses to average net assets . 1.41% 2.16% 1.16% 1.36% 2.11% 1.11%
Ratio of net investment income to
average net assets .................. 1.75% 1.00% 2.00% 2.05% 1.30% 2.31%
Ratio of expenses to average net assets* 1.50% 2.25% 1.25% 1.61% 2.36% 1.36%
Portfolio turnover ...................... 86.85% 86.85% 86.85% 158.56% 158.56% 158.56%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
11
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE BALANCED ALLOCATION FUND
================================================================================
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND
------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
----------------------------------------------- -----------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ........ $ 13.00 $13.00 $12.92 $ 12.99 $ 13.37 $ 13.36 $13.28 $ 13.37
------- ------ ------ -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ....... 0.29 0.19 0.18 0.32 0.32 0.21 0.21 0.35
Net realized and unrealized
gains on investments ...... 1.21 1.21 1.21 1.20 1.12 1.13 1.14 1.12
------- ------ ------ -------- ------- ------- ------ --------
Total from Investment
Activities ................ 1.50 1.40 1.39 1.52 1.44 1.34 1.35 1.47
------- ------ ------ -------- ------- ------- ------ --------
DISTRIBUTIONS
Net investment income ....... (0.32) (0.23) (0.23) (0.35) (0.33) (0.22) (0.23) (0.37)
Net realized gains .......... (0.36) (0.36) (0.36) (0.36) (1.48) (1.48) (1.48) (1.48)
------- ------ ------ -------- ------- ------- ------ --------
Total Distributions ........ (0.68) (0.59) (0.59) (0.71) (1.81) (1.70) (1.71) (1.85)
------- ------ ------ -------- ------- ------- ------ --------
Net Asset Value,
End of Period .............. $ 13.82 $13.81 $13.72 $ 13.80 $ 13.00 $ 13.00 $12.92 $ 12.99
======= ====== ====== ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ..... 11.87%(a) 11.05%(a) 11.04%(a) 12.06%(a) 11.61% 10.82% 10.90% 11.86%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................ $19,404 $7,988 $ 927 $262,533 $18,826 $ 6,299 $ 795 $245,347
Ratio of expenses to average
net assets .................. 1.36%(b) 2.11%(b) 2.11%(b) 1.12%(b) 1.36% 2.11% 2.11% 1.10%
Ratio of net investment income
to average net assets ....... 2.32%(b) 1.57%(b) 1.56%(b) 2.57%(b) 2.47% 1.73% 1.75% 2.77%
Ratio of expenses to average
net assets* ................. 1.62%(b) 2.37%(b) 2.37%(b) 1.37%(b) 1.61% 2.36% 2.36% 1.36%
Portfolio turnover ............. 117.80% 117.80% 117.80% 117.80% 425.05% 425.05% 425.05% 425.05%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIOS WOULD HAVE BEEN AS INDICATED.
(A) NOT ANNUALIZED.
(B) ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes
12
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE BALANCED ALLOCATION FUND
================================================================================
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND
--------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
--------------------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......... $ 12.19 $12.18 $12.12 $ 12.19 $ 10.67 $ 10.67 $11.13 $ 10.67
------- ------ ------ -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ........ 0.32 0.23 0.24 0.36 0.28 0.20 0.09 0.31
Net realized and unrealized
gains on investments ....... 1.74 1.74 1.71 1.74 1.69 1.67 1.16 1.68
------- ------ ------ -------- ------- ------- ------ --------
Total from Investment
Activities ................. 2.06 1.97 1.95 2.10 1.97 1.87 1.25 1.99
------- ------ ------ -------- ------- ------- ------ --------
DISTRIBUTIONS
Net investment income ........ (0.31) (0.22) (0.22) (0.35) (0.29) (0.20) (0.10) (0.31)
Net realized gains ........... (0.57) (0.57) (0.57) (0.57) (0.01) (0.06) -- (0.03)
In excess of net realized gains -- -- -- -- (0.15) (0.10) (0.16) (0.13)
------- ------ ------ -------- ------- ------- ------ --------
Total Distributions ......... (0.88) (0.79) (0.79) (0.92) (0.45) (0.36) (0.26) (0.47)
------- ------ ------ -------- ------- ------- ------ --------
Net Asset Value,
End of Period ............... $ 13.37 $13.36 $13.28 $ 13.37 $ 12.19 $ 12.18 $12.12 $ 12.19
======= ====== ====== ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ...... 17.51% 16.71% 16.61% 17.81% 18.96% 17.96% 17.53%(c) 19.22%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................. $17,097 $4,278 $ 362 $113,493 $12,849 $ 1,291 $ 114 $ 89,294
Ratio of expenses to average
net assets ................... 1.41% 2.16% 2.16% 1.16% 1.47% 2.25% 2.16%(b) 1.25%
Ratio of net investment income
to average net assets ........ 2.37% 1.64% 1.65% 2.62% 2.54% 1.74% 1.65%(b) 2.75%
Ratio of expenses to average
net assets* .................. 1.66% 2.45% 2.41% 1.41% 1.78% 2.77% 2.68%(b) 1.52%
Portfolio turnover .............. 437.90% 437.90% 437.90% 437.90% 250.66% 250.66% 250.66% 250.66%
<FN>
* 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) ANNUALIZED.
(C) REPRESENTS TOTAL RETURN FOR THE INSTITUTIONAL SHARES FOR THE PERIOD FROM
JULY 1, 1994 TO NOVEMBER 15, 1994 PLUS THE TOTAL RETURN FOR THE INVESTOR C
SHARES FOR THE PERIOD FROM NOVEMBER 16, 1994 TO JUNE 30, 1995.
</FN>
</TABLE>
See Accompanying Notes
13
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE BOND FUND
================================================================================
<TABLE>
<CAPTION>
BOND FUND
------------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
----------- ----------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Perio ........ $ 9.68 $ 9.69 $ 9.73 $ 9.99 $10.00 $ 10.04
------- ------ -------- ------- ------ ---------
INVESTMENT ACTIVITIES
Net investment income ................... 0.55 0.49 0.58 0.52 0.46 0.56
Net realized and unrealized
losses on investments ................. (0.55) (0.55) (0.55) (0.28) (0.29) (0.29)
------- ------ -------- ------- ------ ---------
Total from Investment Activities .... (0.00) (0.06) 0.03 0.24 0.17 0.27
------- ------ -------- ------- ------ ---------
DISTRIBUTIONS
Net investment income ................... (0.55) (0.48) (0.58) (0.53) (0.46) (0.56)
Net realized gains ...................... -- -- -- (0.02) ( 0.02) ( 0.02)
------- ------ -------- ------- ------ ---------
Total Distributions ................. (0.55) (0.48) (0.58) (0.55) (0.48) (0.58)
------- ------ -------- ------- ------ ---------
Net Asset Value, End of Period .......... $ 9.13 $ 9.15 $ 9.18 $ 9.68 $ 9.69 $ 9.73
======= ====== ======== ======= ====== ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) .................... 0.05% (0.58)% 0.35% 2.55% 1.66% 2.70%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) .......... $10,237 $2,373 $294,308 $11,916 $4,548 $366,230
Ratio of expenses to average net assets .... 1.12% 1.87% 0.87% 1.19% 1.94% 0.94%
Ratio of net investment income to
average net assets ..................... 5.89% 5.14% 6.14% 5.29% 4.53% 5.53%
Ratio of expenses to average net assets* ... 1.14% 1.89% 0.89% 1.28% 2.03% 1.03%
Portfolio turnover ......................... 154.62% 154.62% 154.62% 268.66% 268.66% 268.66%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
14
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE BOND FUND
================================================================================
<TABLE>
<CAPTION>
BOND FUND
-----------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
-----------------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ........... $ 9.68 $ 9.69 $ 9.65 $ 9.73 $ 9.51 $ 9.51 $ 9.47 $ 9.56
------- ------ ------ -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income .......... 0.52 0.46 0.47 0.56 0.56 0.50 0.49 0.59
Net realized and unrealized
gains on investments ......... 0.32 0.32 0.31 0.31 0.17 0.16 0.17 0.17
------- ------ ------ -------- ------- ------- ------ --------
Total from Investment
Activities ................... 0.84 0.78 0.78 0.87 0.73 0.66 0.66 0.76
------- ------ ------ -------- ------- ------- ------ --------
DISTRIBUTIONS
Net investment income .......... (0.53) (0.47) (0.47) (0.56) (0.56) (0.48) (0.48) (0.59)
------- ------ ------ -------- ------- ------- ------ --------
Total Distributions ........... (0.53) (0.47) (0.47) (0.56) (0.56) (0.48) (0.48) (0.59)
------- ------ ------ -------- ------- ------- ------ --------
Net Asset Value,
End of Period ................. $ 9.99 $10.00 $ 9.96 $ 10.04 $ 9.68 $ 9.69 $ 9.65 $ 9.73
======= ====== ====== ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ........ 8.83%(a) 8.18%(a) 8.11%(a) 9.15%(a) 7.92% 7.09% 7.15% 8.20%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................... $16,669 $6,423 $ 595 $481,998 $19,760 $ 5,967 $ 508 $492,102
Ratio of expenses to average
net assets ..................... 1.19%(b) 1.94%(b) 1.94%(b) 0.94%(b) 1.19% 1.94% 1.94% 0.94%
Ratio of net investment income
to average net assets .......... 5.81%(b) 5.07%(b) 5.06%(b) 6.06%(b) 5.88% 5.15% 5.18% 6.13%
Ratio of expenses to average
net assets* .................... 1.28%(b) 2.03%(b) 2.03%(b) 1.04%(b) 1.28% 2.03% 2.03% 1.03%
Portfolio turnover ................ 545.68% 545.68% 545.68% 545.68% 827.00% 827.00% 827.00% 827.00%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIOS WOULD HAVE BEEN AS INDICATED.
(A) NOT ANNUALIZED.
(B) ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes
15
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE BOND FUND
================================================================================
<TABLE>
<CAPTION>
BOND FUND
--------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
--------------------------------------------- ----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......... $ 9.67 $ 9.68 $ 9.64 $ 9.72 $ 9.30 $ 9.26 $ 9.02 $ 9.29
-------- ------- ------- -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ........ 0.57 0.50 0.50 0.59 0.58 0.52 0.22 0.61
Net realized and unrealized
gains (losses) on
investments ................ (0.16) (0.17) (0.17) (0.16) 0.38 0.42 0.62 0.43
-------- ------- ------- -------- ------- ------- ------ --------
Total from Investment
Activities ................. 0.41 0.33 0.33 0.43 0.96 0.94 0.84 1.04
-------- ------- ------- -------- ------- ------- ------ --------
DISTRIBUTIONS
Net investment income ........ (0.57) (0.50) (0.50) (0.59) (0.58) (0.52) (0.22) (0.61)
In excess of net realized gains -- -- -- -- (0.01) -- -- --
-------- ------- ------- -------- ------- ------- ------ --------
Total Distributions ......... (0.57) (0.50) (0.50) (0.59) (0.59) (0.52) (0.22) (0.61)
-------- ------- ------- -------- ------- ------- ------ --------
Net Asset Value,
End of Period ............... $ 9.51 $ 9.51 $ 9.47 $ 9.56 $ 9.67 $ 9.68 $ 9.64 $ 9.72
======== ======= ======= ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ...... 4.27% 3.46% 3.50% 4.49% 10.85% 10.62% 8.41%(c) 11.78%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................. $ 20,175 $ 4,426 $ 210 $549,336 $17,572 $ 1,330 $ 28 $509,189
Ratio of expenses to average
net assets ................... 1.19% 1.94% 1.91% 0.94% 1.24% 2.03% 1.99%(b) 1.02%
Ratio of net investment income
to average net assets ........ 5.71% 4.97% 5.00% 5.96% 6.32% 5.54% 5.62%(b) 6.54%
Ratio of expenses to average
net assets* .................. 1.28% 2.03% 2.03% 1.03% 1.39% 2.39% 2.26%(b) 1.14%
Portfolio turnover .............. 1189.27% 1189.27% 1189.27% 1189.27% 1010.64% 1010.64% 1010.64% 1010.64%
<FN>
* 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) ANNUALIZED.
(C) REPRESENTS TOTAL RETURN FOR THE INSTITUTIONAL SHARES FOR THE PERIOD FROM
JULY 1, 1994 TO NOVEMBER 15, 1994 PLUS THE TOTAL RETURN FOR THE INVESTOR C
SHARES FOR THE PERIOD FROM NOVEMBER 16, 1994 TO JUNE 30, 1995.
</FN>
</TABLE>
See Accompanying Notes
16
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
-------------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
-------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $ 9.77 $ 9.74 $ 9.76 $ 9.88 $ 9.85 $ 9.88
------ ------ ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ..................... 0.50 0.45 0.53 0.48 0.40 0.50
Net realized and unrealized
losses on investments ................... (0.32) (0.33) (0.31) (0.11) (0.11) (0.12)
------ ------ ------- ------- ------ --------
Total from Investment Activities ...... 0.18 0.12 0.22 0.37 0.29 0.38
------ ------ ------- ------- ------ --------
DISTRIBUTIONS
Net investment income ..................... (0.50) (0.43) (0.53) (0.48) (0.40) (0.50)
Tax return of capital ..................... -- -- -- -- -- --
------ ------ ------- ------- ------ --------
Total Distributions ................... (0.50) (0.43) (0.53) (0.48) (0.40) (0.50)
------ ------ ------- ------- ------ --------
Net Asset Value, End of Period ............ $ 9.45 $ 9.43 $ 9.45 $ 9.77 $ 9.74 $ 9.76
====== ====== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) ...................... 1.90% 1.23% 2.27% 3.83% 2.96% 4.01%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ............ $7,743 $ 552 $73,181 $10,244 $1,255 $133,678
Ratio of expenses to average net assets ...... 1.21% 1.96% 0.96% 1.24% 1.99% 0.99%
Ratio of net investment income to
average net assets ....................... 5.21% 4.46% 5.46% 4.81% 4.05% 5.06%
Ratio of expenses to average net assets* ..... 1.24% 1.99% 0.99% 1.33% 2.08% 1.08%
Portfolio turnover ........................... 64.66% 64.66% 64.66% 53.07% 53.07% 53.07%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
17
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
---------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
--------------------------------------------------- -----------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......... $ 9.73 $ 9.71 $ 9.54 $ 9.73 $ 9.70 $ 9.67 $ 9.52 $ 9.71
------- ------ ------ -------- ------- -------- ------- --------
INVESTMENT ACTIVITIES
Net investment income ........ 0.49 0.43 0.40 0.52 0.52 0.45 0.45 0.55
Net realized and unrealized
gains on investments ....... 0.16 0.15 0.18 0.16 0.04 0.03 0.02 0.03
------- ------ ------ -------- ------- -------- ------- --------
Total from Investment
Activities ................. 0.65 0.58 0.58 0.68 0.56 0.48 0.47 0.58
------- ------ ------ -------- ------- -------- ------- --------
DISTRIBUTIONS
Net investment income ........ (0.49) (0.43) (0.43) (0.52) (0.53) (0.44) (0.45) (0.56)
Tax return of capital ........ (0.01) (0.01) (0.01) (0.01) -- -- -- --
------- ------ ------ -------- ------- -------- ------- --------
Total Distributions ......... (0.50) (0.44) (0.44) (0.53) (0.53) (0.44) (0.45) (0.56)
------- ------ ------ -------- ------- -------- ------- --------
Net Asset Value,
End of Period ............... $ 9.88 $ 9.85 $ 9.68 $ 9.88 $ 9.73 $ 9.71 $ 9.54 $ 9.73
======= ====== ====== ======== ======= ======== ======= ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ...... 6.78%(a) 6.07%(a) 6.19%(a) 7.03%(a) 5.91% 5.09% 5.03% 6.11%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................. $14,461 $1,852 $ 235 $171,481 $18,552 $ 1,972 $ 194 $187,856
Ratio of expenses to average
net assets ................... 1.22%(b) 1.97%(b) 1.96%(b) 0.97%(b) 1.23% 1.98% 1.99% 0.98%
Ratio of net investment income
to average net assets ........ 5.42%(b) 4.67%(b) 4.67%(b) 5.67%(b) 5.41% 4.67% 4.69% 5.66%
Ratio of expenses to average
net assets* .................. 1.31%(b) 2.06%(b) 2.05%(b) 1.06%(b) 1.32% 2.07% 2.07% 1.07%
Portfolio turnover .............. 774.28% 774.28% 774.28% 774.28% 1516.78% 1516.78% 1516.78% 1516.78%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIOS WOULD HAVE BEEN AS INDICATED.
(A) NOT ANNUALIZED.
(B) ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes
18
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
--------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
---------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......... $ 9.93 $ 9.89 $ 9.76 $ 9.93 $ 9.62 $ 9.60 $ 9.42 $ 9.62
------ ------ ------ -------- ------- ------ ------ --------
INVESTMENT ACTIVITIES
Net investment income ........ 0.60 0.53 0.53 0.62 0.50 0.43 0.18 0.52
Net realized and unrealized
gains (losses) on
investments ................ (0.25) (0.24) (0.25) (0.24) 0.31 0.30 0.33 0.31
------ ------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities ................. 0.35 0.29 0.28 0.38 0.81 0.73 0.51 0.83
------ ------ ------ -------- ------- ------ ------ --------
DISTRIBUTIONS
Net investment income ........ (0.58) (0.51) (0.52) (0.60) (0.50) (0.44) (0.17) (0.52)
------ ------ ------ -------- ------- ------ ------ --------
Total Distributions ......... (0.58) (0.51) (0.52) (0.60) (0.50) (0.44) (0.17) (0.52)
------ ------ ------ -------- ------- ------ ------ --------
Net Asset Value,
End of Period ............... $ 9.70 $ 9.67 $ 9.52 $ 9.71 $ 9.93 $ 9.89 $ 9.76 $ 9.93
====== ====== ====== ======== ======= ====== ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ...... 3.69% 2.93% 2.86% 3.95% 8.69% 7.84% 5.21%(c) 9.02%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................. $22,954 $1,843 $ 80 $225,313 $27,521 $ 977 $ 9 $249,169
Ratio of expenses to average
net assets ................... 1.21% 1.96% 1.96% 0.96% 1.25% 2.06% 2.09%(b) 1.04%
Ratio of net investment income
to average net assets ........ 5.51% 4.78% 4.83% 5.76% 5.22% 4.41% 4.24%(b) 5.43%
Ratio of expenses to average
net assets* .................. 1.30% 2.05% 2.05% 1.05% 1.41% 2.42% 2.36%(b) 1.16%
Portfolio turnover .............. 916.39% 916.39% 916.39% 916.39% 549.13% 549.13% 549.13% 549.13%
<FN>
* 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) ANNUALIZED.
(C) REPRESENTS TOTAL RETURN FOR THE INSTITUTIONAL SHARES FOR THE PERIOD FROM
JULY 1, 1994 TO NOVEMBER 15, 1994 PLUS THE TOTAL RETURN FOR THE INVESTOR C
SHARES FOR THE PERIOD FROM NOVEMBER 16, 1994 TO JUNE 30, 1995.
</FN>
</TABLE>
See Accompanying Notes
19
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE LIMITED MATURITY BOND FUND
================================================================================
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND
--------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
------------------------------------- ---------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .......... $ 9.42 $ 9.42 $ 9.42 $ 9.50 $ 9.50 $ 9.50
------ ------ -------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ...................... 0.54 0.47 0.55 0.53 0.46 0.56
Net realized and unrealized
losses on investments .................... (0.27) (0.27) (0.25) (0.08) (0.08) (0.08)
------ ------ -------- ------- ------ --------
Total from Investment Activities ....... 0.27 0.20 0.30 0.45 0.38 0.48
------ ------ -------- ------- ------ --------
DISTRIBUTIONS
Net investment income ...................... (0.52) (0.45) (0.55) (0.53) (0.46) (0.56)
------ ------ -------- ------- ------ --------
Total Distributions .................... (0.52) (0.45) (0.55) (0.53) (0.46) (0.56)
------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period ......................... $ 9.17 $ 9.17 $ 9.17 $ 9.42 $ 9.42 $ 9.42
====== ====== ======== ======= ====== ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) ....................... 2.95% 2.21% 3.25% 4.84% 4.03% 5.12%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ............. $8,956 $ 573 $101,448 $24,246 $ 826 $123,137
Ratio of expenses to average net assets ....... 1.10% 1.85% 0.85% 1.08% 1.83% 0.84%
Ratio of net investment income to
average net assets ........................ 5.66% 4.91% 5.91% 5.55% 4.81% 5.83%
Ratio of expenses to average net assets* ...... 1.17% 1.92% 0.92% 1.32% 2.07% 1.07%
Portfolio turnover ............................ 92.09% 92.09% 92.09% 126.98% 126.98% 126.98%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
20
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE LIMITED MATURITY BOND FUND
================================================================================
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND
-------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
------------------------------------------------ -----------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......... $ 9.49 $ 9.49 $ 9.29 $ 9.49 $ 9.48 $ 9.46 $ 9.29 $ 9.48
------- ------ ------ -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ........ 0.47 0.40 0.42 0.50 0.55 0.48 0.48 0.57
Net realized and unrealized
gains (losses) on
investments ................ 0.01 0.02 (0.01) 0.01 0.01 0.02 -- 0.02
------- ------ ------ -------- ------- ------- ------ --------
Total from Investment
Activities ................. 0.48 0.42 0.41 0.51 0.56 0.50 0.48 0.59
------- ------ ------ -------- ------- ------- ------ --------
DISTRIBUTIONS
Net investment income ........ (0.47) (0.41) (0.42) (0.50) (0.55) (0.47) (0.48) (0.58)
------- ------ ------ -------- ------- ------- ------ --------
Total Distributions ......... (0.47) (0.41) (0.42) (0.50) (0.55) (0.47) (0.48) (0.58)
------- ------ ------ -------- ------- ------- ------ --------
Net Asset Value,
End of Period ............... $ 9.50 $ 9.50 $ 9.28 $ 9.50 $ 9.49 $ 9.49 $ 9.29 $ 9.49
======= ====== ====== ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ...... 5.23%(a) 4.50%(a) 4.48%(a) 5.46%(a) 6.11% 5.39% 5.26% 6.42%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) ................. $41,571 $1,553 $2,199 $150,510 $27,381 $ 1,492 $ 41 $136,126
Ratio of expenses to average
net assets ................... 1.07%(b) 1.82%(b) 1.80%(b) 0.82%(b) 1.11% 1.86% 1.86% 0.85%
Ratio of net investment income
to average net assets ........ 5.37%(b) 4.63%(b) 4.60%(b) 5.63%(b) 5.76% 5.02% 4.97% 6.03%
Ratio of expenses to average
net assets* .................. 1.31%(b) 2.06%(b) 2.04%(b) 1.06%(b) 1.35% 2.10% 2.10% 1.10%
Portfolio turnover .............. 225.88% 225.88% 225.88% 225.88% 607.84% 607.84% 607.84% 607.84%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIOS WOULD HAVE BEEN AS INDICATED.
(A) NOT ANNUALIZED.
(B) ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes
21
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE LIMITED MATURITY BOND FUND
================================================================================
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND
----------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
----------------------------------------------------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C(A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ...... $ 9.71 $ 9.70 $ 9.53 $ 9.71 $ 9.57 $ 9.56 $ 9.35 $ 9.57
------- ------ ------ -------- ------- ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ..... 0.62 0.55 0.58 0.65 0.56 0.49 0.20 0.58
Net realized and unrealized
gains (losses) on
investments ............. (0.21) (0.22) (0.23) (0.21) 0.13 0.12 0.17 0.13
------- ------ ------ -------- ------- ------- ------ --------
Total from Investment
Activities .............. 0.41 0.33 0.35 0.44 0.69 0.61 0.37 0.71
------- ------ ------ -------- ------- ------- ------ --------
DISTRIBUTIONS
Net investment income ..... (0.62) (0.55) (0.58) (0.65) (0.55) (0.47) (0.19) (0.57)
Net realized gains ........ (0.01) -- -- (0.01) -- -- -- --
Tax return of capital ..... (0.01) (0.02) (0.01) (0.01) -- -- -- --
------- ------ ------ -------- ------- ------- ------ --------
Total Distributions ...... (0.64) (0.57) (0.59) (0.67) (0.55) (0.47) (0.19) (0.57)
------- ------ ------ -------- ------- ------- ------ --------
Net Asset Value,
End of Period ............ $ 9.48 $ 9.46 $ 9.29 $ 9.48 $ 9.71 $ 9.70 $ 9.53 $ 9.71
======= ====== ====== ======== ======= ======= ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ... 4.37% 3.43% 3.71% 4.65% 7.53% 6.68% 3.58%(c) 7.76%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000) .............. $14,390 $1,547 $ 11 $136,681 $18,930 $ 892 $ -- $141,781
Ratio of expenses to average
net assets ................ 1.09% 1.84% 1.82% 0.84% 1.05% 1.85% 1.18%(b) 0.84%
Ratio of net investment income
to average net assets ..... 6.09% 5.35% 5.34% 6.32% 5.89% 5.14% 5.61%(b) 6.11%
Ratio of expenses to average
net assets* ............... 1.33% 2.08% 2.02% 1.08% 1.36% 2.36% 1.18%(b) 1.11%
Portfolio turnover ........... 618.60% 618.60% 618.60% 618.60% 397.97% 397.97% 397.97% 397.97%
<FN>
* 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) ANNUALIZED.
(C) REPRESENTS TOTAL RETURN FOR THE INSTITUTIONAL SHARES FOR THE PERIOD FROM
JULY 1, 1994 TO NOVEMBER 15, 1994 PLUS THE TOTAL RETURN FOR THE INVESTOR C
SHARES FOR THE PERIOD FROM NOVEMBER 16, 1994 TO JUNE 30, 1995.
</FN>
</TABLE>
See Accompanying Notes
22
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE NATIONAL TAX EXEMPT BOND FUND
================================================================================
<TABLE>
<CAPTION>
NATIONAL TAX EXEMPT BOND FUND
-------------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
------------------------------------------ ---------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period .................... $10.38 $ 10.36 $ 10.39 $10.53 $10.50 $ 10.53
------ ------ ------- ------ ------ --------
INVESTMENT ACTIVITIES
Net investment income .................... 0.39 0.31 0.40 0.37 0.29 0.40
Net realized and unrealized
losses on investments .................. (0.47) (0.47) (0.47) (0.03) (0.02) (0.02)
------ ------ ------- ------ ------ --------
Total from Investment Activities ..... (0.08) (0.16) (0.07) 0.34 0.27 0.38
------ ------ ------- ------ ------ --------
DISTRIBUTIONS
Net investment income .................... (0.38) (0.31) (0.40) (0.37) (0.29) (0.40)
Net realized gains ....................... (0.03) (0.03) (0.03) (0.12) (0.12) (0.12)
------ ------ ------- ------ ------ --------
Total Distributions .................. (0.41) (0.34) (0.43) (0.49) (0.41) (0.52)
------ ------ ------- ------ ------ --------
Net Asset Value,
End of Period ........................ $ 9.89 $ 9.86 $ 9.89 $10.38 $10.36 $ 10.39
====== ====== ======= ====== ====== ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) ..................... (0.75)% (1.50)% (0.57)% 3.29% 2.53% 3.56%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ........... $3,381 $ 400 $60,863 $6,886 $491 $96,946
Ratio of expenses to average net assets ..... 1.13% 1.88% 0.88% 1.02% 1.77% 0.77%
Ratio of net investment income to
average net assets ...................... 3.74% 2.99% 3.99% 3.51% 2.76% 3.76%
Ratio of expenses to average net assets* .... 1.24% 1.99% 0.99% 1.31% 2.06% 1.06%
Portfolio turnover .......................... 36.42% 36.42% 36.42% 6.67% 6.67% 6.67%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
23
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE NATIONAL TAX EXEMPT BOND FUND
================================================================================
<TABLE>
<CAPTION>
NATIONAL TAX EXEMPT BOND FUND
------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
----------------------------------------- ---------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ................... $10.53 $10.51 $ 10.54 $10.43 $10.39 $ 10.43
------ ------ -------- ------ ------ --------
INVESTMENT ACTIVITIES
Net investment income ................... 0.35 0.28 0.37 0.44 0.36 0.46
Net realized and unrealized
gains on investments .................. 0.22 0.21 0.21 0.12 0.13 0.14
------ ------ -------- ------ ------ --------
Total from Investment Activities .... 0.57 0.49 0.58 0.56 0.49 0.60
------ ------ -------- ------ ------ --------
DISTRIBUTIONS
Net investment income ................... (0.39) (0.32) (0.41) (0.41) (0.32) (0.44)
Net realized gains ...................... (0.18) (0.18) (0.18) (0.05) (0.05) (0.05)
------ ------ -------- ------ ------ --------
Total Distributions ................. (0.57) (0.50) (0.59) (0.46) (0.37) (0.49)
------ ------ -------- ------ ------ --------
Net Asset Value,
End of Period ...................... $10.53 $10.50 $ 10.53 $10.53 $10.51 $ 10.54
====== ====== ======== ====== ====== ========
TOTAL RETURN (EXCLUDES SALES AND
REDEMPTION CHARGES) .................... 5.46%(a) 4.75%(a) 5.71%(a) 5.47% 4.81% 5.89%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) .......... $9,502 $ 706 $123,856 $9,601 $ 993 $134,579
Ratio of expenses to average net assets .... 1.02%(b) 1.77%(b) 0.77%(b) 1.06% 1.81% 0.81%
Ratio of net investment income to
average net assets ..................... 3.64%(b) 2.89%(b) 3.89%(b) 4.19% 3.43% 4.41%
Ratio of expenses to average net assets* ... 1.31%(b) 2.06%(b) 1.07%(b) 1.35% 2.10% 1.10%
Portfolio turnover ......................... 85.56% 85.56% 85.56% 48.83% 48.83% 48.83%
<FN>
* 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.
</FN>
</TABLE>
See Accompanying Notes
24
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE NATIONAL TAX EXEMPT BOND FUND
================================================================================
<TABLE>
<CAPTION>
NATIONAL TAX EXEMPT BOND FUND
-------------------------------------
YEAR ENDED JUNE 30, 1996
-------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- -------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period .................. $10.39 $10.36 $ 10.39
------ ------ --------
INVESTMENT ACTIVITIES
Net investment income (loss) .......... 0.41 0.33 0.43
Net realized and unrealized gains
on investments ...................... 0.03 0.03 0.04
------ ------ --------
Total from Investment
Activities .......................... 0.44 0.36 0.47
------ ------ --------
DISTRIBUTIONS
Net investment income ................. (0.40) (0.33) (0.43)
Net realized gains .................... -- -- --
In excess of net realized gains ....... -- -- --
------ ------ --------
Total Distributions .................. (0.40) (0.33) (0.43)
------ ------ --------
Net Asset Value,
End of Period ....................... $10.43 $10.39 $ 10.43
====== ====== ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ............... 4.29% 3.48% 4.55%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ........ $7,835 $ 735 $135,527
Ratio of expenses to average net assets .. 1.05% 1.80% 0.80%
Ratio of net investment income (loss)
to average net assets ................. 3.85% 3.11% 4.10%
Ratio of expenses to average
net assets* ........................... 1.34% 2.09% 1.09%
Portfolio turnover ....................... 47.46% 47.46% 47.46%
NATIONAL TAX EXEMPT BOND FUND
--------------------------------------------------------
YEAR ENDED JUNE 30, 1995
--------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C(A)(B) INSTITUTIONAL
---------- ---------- ---------------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period .................. $ 10.29 $10.26 $ 9.88 $ 10.29
------- ------ ------- --------
INVESTMENT ACTIVITIES
Net investment income (loss) .......... 0.41 0.33 (0.03) 0.46
Net realized and unrealized gains
on investments ...................... 0.27 0.27 0.65 0.27
------- ------ ------- --------
Total from Investment
Activities .......................... 0.68 0.60 0.62 0.73
------- ------ ------- --------
DISTRIBUTIONS
Net investment income ................. (0.41) (0.33) (0.14) (0.46)
Net realized gains .................... -- -- -- --
In excess of net realized gains ....... (0.17) (0.17) (0.16) (0.17)
------- ------ ------- --------
Total Distributions .................. (0.58) (0.50) (0.30) (0.63)
------- ------ ------- --------
Net Asset Value,
End of Period ....................... $ 10.39 $10.36 $ 10.20 $ 10.39
======= ====== ======= ========
TOTAL RETURN (EXCLUDES SALES
AND REDEMPTION CHARGES) ............... 7.02% 6.17% 3.47%(d) 7.25%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ........ $11,378 $ 447 -- $134,784
Ratio of expenses to average net assets .. 1.02% 1.80% 0.71%(c) 0.80%
Ratio of net investment income (loss)
to average net assets ................. 4.00% 3.22% (0.54)%(c) 4.21%
Ratio of expenses to average
net assets* ........................... 1.33% 2.33% 0.71%(c) 1.08%
Portfolio turnover ....................... 35.15% 35.15% 35.15% 35.15%
<FN>
* 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) ANNUALIZED.
(D) REPRESENTS TOTAL RETURN FOR THE INSTITUTIONAL SHARES FOR THE PERIOD FROM
JULY 1, 1994 TO NOVEMBER 15, 1994 PLUS THE TOTAL RETURN FOR THE INVESTOR C
SHARES FOR THE PERIOD FROM NOVEMBER 16, 1994 TO JUNE 30, 1995.
</FN>
</TABLE>
See Accompanying Notes
25
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE PRIME OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
-------------------------------------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
----------------------------------------- --------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B 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 0.041 0.051 0.046 0.037 0.047
DISTRIBUTIONS
Net investment income .................. (0.050) (0.041) (0.051) (0.046) (0.037) (0.047)
------- ------ -------- ------- ------ --------
Net Asset Value,
End of Period ..................... $ 1.000 $1.000 $ 1.000 $ 1.000 $1.000 $ 1.000
======= ====== ======== ======= ====== ========
TOTAL RETURN .............................. 5.11% 4.17% 5.21% 4.66% 3.73% 4.76%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ......... $13,759 $ 262 $554,215 $14,924 $ 764 $628,553
Ratio of expenses to average net assets ... 0.71% 1.61% 0.61% 0.76% 1.66% 0.65%
Ratio of net investment income to
average net assets .................... 4.99% 4.09% 5.09% 4.76% 3.59% 4.67%
Ratio of expenses to average net assets* .. 0.86% 1.61% 0.61% 0.93% 1.67% 0.67%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIOS WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
26
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE PRIME OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
---------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
---------------------------------------------- -------------------------------
INVESTOR A INVESTOR B(A) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------ ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ...................... $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000
-------- ------ -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income ...................... 0.045 0.027 0.046 0.048 0.049
DISTRIBUTIONS
Net investment income ...................... (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
======== ====== ======== ======== ========
TOTAL RETURN .................................. 4.63%(b) 2.75%(b) 4.73%(b) 4.91% 5.01%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ............. $217,934 $ 387 $690,947 $195,046 $677,324
Ratio of expenses to average net assets ....... 0.76%(c) 1.66%(c) 0.66%(c) 0.73% 0.63%
Ratio of net investment income to
average net assets ........................ 4.93%(c) 4.01%(c) 5.04%(c) 4.80% 4.90%
Ratio of expenses to average net assets* ...... 0.93%(c) 1.68%(c) 0.68%(c) 0.90% 0.65%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIOS WOULD HAVE BEEN AS INDICATED.
(A) FOR THE PERIOD SEPTEMBER 30, 1997 (COMMENCEMENT OF OFFERING OF INVESTOR B
SHARES) TO MAY 31, 1998.
(B) NOT ANNUALIZED.
(C) ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes
27
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE PRIME OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
---------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
--------------------------- --------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ............................ $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income ............................ 0.050 0.051 0.047 0.048
-------- -------- -------- --------
DISTRIBUTIONS
Net investment income ............................ (0.050) (0.051) (0.047) (0.048)
-------- -------- -------- --------
Net Asset Value,
End of Period ............................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ========
TOTAL RETURN ........................................ 5.07% 5.17% 4.81% 4.91%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ................... $147,478 $596,075 $108,565 $640,380
Ratio of expenses to average net assets ............. 0.74% 0.64% 0.75% 0.65%
Ratio of net investment income to
average net assets .............................. 4.93% 5.05% 4.71% 4.83%
Ratio of expenses to average net assets* ............ 0.91% 0.66% 0.92% 0.67%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
28
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE TAX-FREE FUND
================================================================================
<TABLE>
<CAPTION>
TAX-FREE FUND
-------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
-------------------------- --------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......................... $1.000 $ 1.000 $1.000 $ 1.000
------ ------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ......................... 0.029 0.030 0.025 0.026
------ ------- ------ --------
DISTRIBUTIONS
Net investment income ......................... (0.029) (0.030) (0.025) (0.026)
------ ------- ------ --------
Net Asset Value,
End of Period ............................ $1.000 $ 1.000 $1.000 $ 1.000
====== ======= ====== ========
TOTAL RETURN ..................................... 2.90% 3.01% 2.56% 2.66%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ................ $ 324 $82,600 $ 621 $110,136
Ratio of expenses to average net assets .......... 0.77% 0.67% 0.77% 0.68%
Ratio of net investment income to
average net assets ........................... 2.85% 2.95% 2.71% 2.62%
Ratio of expenses to average net assets* ......... 0.92% 0.67% 0.94% 0.70%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
29
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE TAX-FREE FUND
================================================================================
<TABLE>
<CAPTION>
TAX-FREE FUND
---------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
-------------------------------- ---------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ........................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- ------- --------
INVESTMENT ACTIVITIES
Net investment income ........................... 0.026 0.027 0.028 0.029
------- -------- ------- --------
DISTRIBUTIONS
Net investment income ........................... (0.026) (0.027) (0.028) (0.029)
------- -------- ------- --------
Net Asset Value,
End of Period .............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======= ========
TOTAL RETURN ....................................... 2.66%(a) 2.75%(a) 2.83% 2.94%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) .................. $55,106 $104,062 $47,466 $108,884
Ratio of expenses to average net assets ............ 0.76%(b) 0.66%(b) 0.78% 0.68%
Ratio of net investment income to
average net assets ............................. 2.86%(b) 2.96%(b) 2.82% 2.90%
Ratio of expenses to average net assets* ........... 0.93%(b) 0.68%(b) 0.95% 0.70%
<FN>
* 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.
</FN>
</TABLE>
See Accompanying Notes
30
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE TAX-FREE FUND
================================================================================
<TABLE>
<CAPTION>
TAX-FREE FUND
---------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
-------------------------- ---------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period .......................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- ------- -------
INVESTMENT ACTIVITIES
Net investment income .......................... 0.029 0.030 0.029 0.030
------- -------- ------- -------
DISTRIBUTIONS
Net investment income .......................... (0.029) (0.030) (0.029) (0.030)
------- -------- ------- -------
Net Asset Value,
End of Period ............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======= =======
TOTAL RETURN ...................................... 2.91% 3.02% 2.90% 3.00%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ................. $41,713 $106,154 $45,102 $98,489
Ratio of expenses to average net assets ........... 0.76% 0.66% 0.74% 0.64%
Ratio of net investment income to
average net assets ............................ 2.89% 2.97% 2.88% 2.97%
Ratio of expenses to average net assets* .......... 0.93% 0.68% 0.95% 0.70%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
31
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE U.S. GOVERNMENT OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
--------------------------------------------------------
YEAR ENDED MAY 31, 2000 YEAR ENDED MAY 31, 1999
-------------------------- --------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ............................. $1.000 $ 1.000 $1.000 $ 1.000
------ -------- ------ --------
INVESTMENT ACTIVITIES
Net investment income ............................. 0.048 0.049 0.044 0.045
------ -------- ------ --------
DISTRIBUTIONS
Net investment income ............................. (0.048) (0.049) (0.044) (0.045)
------ -------- ------ --------
Net Asset Value,
End of Period ................................ $1.000 $ 1.000 $1.000 $ 1.000
====== ======== ====== ========
TOTAL RETURN ......................................... 4.91% 5.02% 4.53% 4.64%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) .................... $ 902 $101,016 $2,032 $112,475
Ratio of expenses to average net assets .............. 0.77% 0.67% 0.75% 0.67%
Ratio of net investment income to
average net assets ............................... 4.78% 4.88% 4.75% 4.57%
Ratio of expenses to average net assets* ............. 0.92% 0.67% 0.92% 0.69%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
32
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE U.S. GOVERNMENT OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
--------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
-------------------------------- --------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income ................... 0.044 0.045 0.047 0.048
-------- -------- -------- --------
DISTRIBUTIONS
Net investment income ................... (0.044) (0.045) (0.047) (0.048)
-------- -------- -------- --------
Net Asset Value,
End of Period ...................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ========
TOTAL RETURN ............................... 4.53%(a) 4.62%(a) 4.79% 4.89%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) .......... $169,210 $185,384 $212,082 $210,162
Ratio of expenses to average net assets .... 0.76%(b) 0.66%(b) 0.74% 0.64%
Ratio of net investment income to
average net assets ..................... 4.83%(b) 4.93%(b) 4.69% 4.79%
Ratio of expenses to average net assets* ... 0.93%(b) 0.68%(b) 0.91% 0.66%
<FN>
* 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.
</FN>
</TABLE>
See Accompanying Notes
33
<PAGE>
FINANCIAL HIGHLIGHTS
PARKSTONE U.S. GOVERNMENT OBLIGATIONS FUND
================================================================================
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
---------------------------------------------------------
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
-------------------------- ---------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ...................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income ...................... 0.049 0.050 0.047 0.048
-------- -------- -------- --------
DISTRIBUTIONS
Net investment income ...................... (0.049) (0.050) (0.047) (0.048)
-------- -------- -------- --------
Net Asset Value,
End of Period ......................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ========
TOTAL RETURN .................................. 4.99% 5.10% 4.76% 4.87%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ............. $186,944 $207,451 $169,179 $227,565
Ratio of expenses to average net assets ....... 0.74% 0.64% 0.77% 0.67%
Ratio of net investment income to
average net assets ........................ 4.88% 4.99% 4.62% 4.76%
Ratio of expenses to average net assets* ...... 0.91% 0.66% 0.94% 0.69%
<FN>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
</FN>
</TABLE>
See Accompanying Notes
34
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE INTERNATIONAL DISCOVERY FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
FOREIGN COMMON STOCK -- 91.3%
AUSTRALIA -- 0.6%
National Australia Bank* ...... 115,712 $ 1,730
-------
AUSTRIA -- 0.9%
Mayr Melnhof Karton* .......... 59,111 2,826
-------
CANADA -- 0.5%
Talisman Energy* .............. 46,000 1,492
-------
DENMARK -- 0.7%
Novo-Nordisk, Series B ........ 12,811 2,132
-------
FINLAND -- 3.5%
Nokia, ADR .................... 177,200 9,214
Sonera Oyj .................... 33,436 1,702
-------
10,916
-------
FRANCE -- 13.3%
Alcatel ....................... 40,000 2,223
Altran Technologies ........... 24,795 5,601
Aventis# ...................... 61,611 4,025
Axa*# ......................... 42,285 6,262
Bouygues* ..................... 3,691 2,297
Coflexip Stena Offshore ....... 9,603 1,129
LVMH Moet-Hennessy Luis
Vuitton* ..................... 5,840 2,393
STMicroelectronics ............ 25,947 1,554
Societe Television Francaise .. 1,900 1,229
Thomson Multimedia* ........... 32,232 3,369
Total Fina Elf, Cl B .......... 41,993 6,648
Valeo ......................... 27,570 1,403
Vivendi*# ..................... 30,050 3,239
-------
41,372
-------
GERMANY -- 7.0%
Allianz*# ..................... 10,860 3,939
Brainpool TV .................. 4,100 377
Consors Discount-Broker*# ..... 12,180 1,153
Deutsche Bank*# ............... 48,285 3,747
Epcos* ........................ 25,389 3,129
HypoVereinsbank# .............. 27,782 1,815
Infineon Technologies*# ....... 12,565 826
Infineon Technologies, ADR* ... 2,094 132
Muenchener Rueckversicher* .... 9,314 2,750
Siemens*# ..................... 27,228 4,053
-------
21,921
-------
HONG KONG -- 3.8%
Cheung Kong * ................. 171,081 1,564
China Telecom (Hong Kong)* .... 409,594 3,062
HSBC Holdings* ................ 173,671 1,917
Hutchison Whampoa* ............ 257,854 2,978
Johnson Electric Holdings* .... 300,331 2,226
-------
11,747
-------
NUMBER VALUE
OF SHARES (000)
--------- ------
FOREIGN COMMON STOCK -- CONTINUED
IRELAND -- 0.5%
Parthus Technologies* ......... 30,700 $ 76
Ryanair Holdings* ............. 200,000 1,616
-------
1,692
-------
ITALY -- 5.0%
Assicurazioni Generali# ....... 94,423 2,859
Bipop-Carire .................. 255,210 2,327
Bulgari* ...................... 205,385 2,580
Saipem* ....................... 463,442 2,328
Telecom Italia*# .............. 259,529 3,600
Telecom Italia Mobile*# ....... 187,852 1,967
-------
15,661
-------
JAPAN -- 16.7%
Canon* ........................ 40,000 1,841
Chugai Pharmaceutical# ........ 275,746 4,721
Fanuc ......................... 14,689 1,280
Fuji Bank* .................... 392,229 3,032
NEC*# ......................... 210,758 5,339
Nikko Securities .............. 246,687 2,285
NTT Docomo* ................... 286 7,378
Sanyo Electric ................ 302,000 2,231
Sekisui House* ................ 329,000 3,200
Seven-Eleven .................. 16,285 1,440
SMC ........................... 13,869 2,431
Softbank# ..................... 2,592 397
Softbank - New ................ 5,184 777
Sony*# ........................ 32,426 2,934
Takeda Chemical Industries* ... 72,432 4,940
Tokyo Electron ................ 15,711 2,143
Toyota Motor* ................. 102,171 4,636
Yahoo Japan* .................. 3 986
-------
51,991
-------
MEXICO -- 0.5%
Cemex, ADR* ................... 73,609 1,560
-------
NETHERLANDS -- 5.5%
Aegon ......................... 57,750 2,093
Heineken* ..................... 62,542 3,227
ING Groep* .................... 49,859 2,996
Qiagen, ADR* .................. 6,900 1,051
Royal Dutch Petroleum* ........ 57,458 3,556
Unilever ...................... 81,796 4,175
-------
17,098
-------
NORWAY -- 2.0%
Norsk Hydro* .................. 83,900 3,242
Tomra Systems ................. 142,000 3,020
-------
6,262
-------
See Accompanying Notes
35
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE INTERNATIONAL DISCOVERY FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
FOREIGN COMMON STOCK -- CONTINUED
SINGAPORE -- 2.4%
City Developments .................. 423,765 $ 1,419
DBS Group Holdings ................. 281,119 2,808
Singapore Press Holdings* .......... 212,754 3,206
--------
7,433
--------
SOUTH KOREA -- 1.5%
Korea Electric Power, ADR .......... 75,480 1,179
Samsung Electronics GDR ............ 10,455 1,686
SK Telecom, ADR .................... 45,000 1,803
--------
4,668
--------
SPAIN -- 2.2%
Banco Santander Central
Hispano ........................... 160,045 1,577
Endesa* ............................ 77,854 1,621
Telefonica* ........................ 159,136 3,281
Terra Networks* .................... 7,575 348
--------
6,827
--------
SWEDEN -- 1.3%
LM Ericsson, ADR ................... 191,228 3,920
--------
SWITZERLAND -- 6.5%
Adecco ............................. 1,755 1,391
Credit Suisse Group*# .............. 12,665 2,374
Holderbank Financiere Glarus* ...... 2,800 3,297
Julius Baer Holdings ............... 1,133 4,079
Nestle*# ........................... 1,018 1,951
Novartis* .......................... 2,695 3,993
Roche Holding* ..................... 304 3,220
--------
20,305
--------
TAIWAN -- 1.0%
Taiwan Semiconductor, ADR* ......... 87,762 3,099
--------
UNITED KINGDOM -- 15.9%
Abbey National ..................... 164,283 2,192
Amvescap ........................... 169,591 2,232
Barclays ........................... 128,187 3,345
Bass ............................... 112,763 1,237
BOC Group .......................... 72,149 1,018
BP Amoco ........................... 563,663 5,146
BP Amoco, ADR ...................... 7,487 407
Colt Telecom Group* ................ 28,965 1,025
Compass Group ...................... 338,547 3,805
Diageo* ............................ 507,700 4,357
Energis* ........................... 49,654 1,892
Invensys ........................... 530,850 1,832
Marconi ............................ 131,406 1,587
National Grid Holdings ............. 352,554 2,724
Pearson ............................ 121,567 3,677
Scottish Power ..................... 246,375 1,959
SmithKline Beecham ................. 115,480 1,480
Standard Chartered ................. 95,789 1,237
Vodafone Group ..................... 1,853,256 8,482
--------
49,634
--------
TOTAL FOREIGN COMMON STOCK
(Cost $219,511) $284,286
--------
CASH EQUIVALENTS -- 7.9%
Goldman Sachs Financial Square
Premium Money Market
Fund .............................11,356,000 $11,356
American Express . . . 06/07/00 .... $13,000 12,984
--------
TOTAL CASH EQUIVALENTS
(Cost $24,343) ............................. 24,340
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $243,854) ............................ $308,626
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.8% ................................ 2,585
--------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no
par value) based on 17,188,704
outstanding shares of beneficial
interest .......................... $198,352
Portfolio Shares of Investor A
(unlimited authorization --
no par value) based on 1,430,799
outstanding shares of beneficial
interest .......................... 12,864
Portfolio Shares of Investor B
(unlimited authorization -- no
par value) based on 494,622
outstanding shares of beneficial
interest .......................... 6,500
Accumulated net realized gain
on investments and futures ........ 28,861
Net unrealized appreciation on
investments ....................... 64,772
Net unrealized depreciation
on foreign currency and translation
of other assets and liabilities in
foreign currency investments ...... (4)
Distributions in excess of net
investment income ................. (134)
--------
TOTAL NET ASSETS -- 100.0% ........... $311,211
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- INSTITUTIONAL ............ $16.33
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR A ..... $16.07
========
MAXIMUM OFFERING PRICE PER
SHARE -- INVESTOR A
($16.07 / 94.5%) .................. $17.01
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- INVESTOR B ..... $15.06
========
----------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
ADR--AMERICAN DEPOSITORY RECEIPT.
CL--CLASS
GDR--GLOBAL DEPOSITORY RECEIPT.
See Accompanying Notes
36
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE INTERNATIONAL DISCOVERY FUND
================================================================================
MAY 31, 2000
At May 31, 2000, sector diversification of the Portfolio was as follows:
% OF
SECTOR DIVERSIFICATION NET ASSETS VALUE
---------------------- ------------ --------
COMMON STOCK
Telecommunications 9.8% $30,286
Banking 8.9% 27,737
Pharmaceuticals 8.2% 25,529
Oil & Gas 6.7% 20,706
Financial Services 6.3% 19,447
Electronic Equipment 4.7% 14,666
Communication Equipment 4.2% 13,135
Insurance 3.7% 11,641
Beverages 3.6% 11,214
News Media 3.4% 10,712
Consumer Goods 2.5% 7,901
Semiconductors 2.3% 6,796
Power Distribution 2.2% 6,777
Computers 2.1% 6,513
Real Estate 2.0% 5,962
Automotive 1.9% 6,040
Food Product Retailer 1.8% 5,755
Engineering Services 1.8% 5,601
Industrial Manufacturing 1.8% 5,451
Electrical Services 1.5% 4,760
Business Services 1.5% 4,748
Communications 1.4% 4,426
Durable Goods 1.3% 4,175
Cement 1.1% 3,297
Chemicals 1.1% 3,242
Water Supply 1.0% 3,239
General Building Contractors 1.0% 3,200
Jewelry 0.8% 2,580
Real estate 0.7% 2,297
Machinery 0.7% 2,226
Transportation 0.5% 1,616
Heavy Construction 0.5% 1,560
Commercial Physical &
Biological 0.3% 1,051
----- --------
TOTAL COMMON STOCK 91.3% 284,286
CASH EQUIVALENT 7.9% 24,340
----- --------
TOTAL INVESTMENTS 99.2% 308,626
----- --------
OTHER ASSETS AND
LIABILITIES, NET 0.8% 2,585
------ --------
NET ASSETS 100.0% $311,211
====== ========
See Accompanying Notes
37
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE SMALL CAPITALIZATION FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- 87.8%
AIR TRANSPORTATION -- 1.1%
Atlas Air* ......................... 88,600 $ 2,868
--------
BANKS -- 1.2%
Cullen/Frost Bankers ............... 111,800 2,963
--------
BROADCASTING, NEWSPAPERS &
ADVERTISING -- 0.9%
Citadel Communications* ............ 45,400 1,819
Spanish Broadcasting Systems,
Cl A*# ............................ 29,400 500
--------
2,319
--------
BUILDING & CONSTRUCTION SUPPLIES -- 2.0%
Insituform Technologies* ........... 57,900 2,001
Trex*# ............................. 67,600 3,008
--------
5,009
--------
BUSINESS SERVICES -- 0.6%
American Management
Systems* .......................... 39,861 1,492
--------
COMMUNICATIONS EQUIPMENT -- 7.8%
Audiocodes* ........................ 26,000 1,900
C-COR Electronics* ................. 89,900 1,978
Commscope* ......................... 156,600 6,049
Digital Microwave*# ................ 65,000 1,816
Mercury Computer Systems* .......... 73,800 2,315
Sawtek* ............................ 71,550 4,602
Tut Systems*# ...................... 27,800 1,439
--------
20,099
--------
COMPUTER COMMUNICATIONS EQUIPMENT -- 5.5%
Act Manufacturing*# ................ 87,000 2,741
Anadigics* ......................... 31,700 1,100
Optimal Robotics* .................. 86,700 2,915
Paradyne Networks* ................. 70,000 1,969
Rsa Security* ...................... 50,175 2,888
Sonicwall* ......................... 42,400 2,555
--------
14,168
--------
COMPUTER SERVICES -- 0.9%
Advanced Digital Information* ...... 94,000 1,198
Intranet Solutions*# ............... 45,000 894
Sequoia Software*# ................. 30,000 203
--------
2,295
--------
COMPUTER SOFTWARE -- 4.9%
Allaire* ........................... 30,000 1,247
Iona Technologies .................. 25,750 1,125
Mercury Interactive* ............... 19,000 1,610
Micromuse* ......................... 18,500 1,842
Novadigm* .......................... 80,900 1,047
Onyx Software* ..................... 74,000 1,258
Remedy* ............................ 76,000 3,154
Visual Networks*# .................. 27,000 1,340
--------
12,623
--------
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
DRUGS & HEALTH CARE -- 1.3%
Tanox* ............................. 66,000 $ 3,337
--------
ELECTRONICS -- 2.7%
CTS ................................ 53,000 2,925
Gentex* ............................ 80,000 2,480
Titan* ............................. 43,600 1,564
--------
6,969
--------
ENTERTAINMENT -- 1.3%
Macrovision* ....................... 48,400 3,382
--------
FINANCIAL SERVICES -- 1.9%
Dain Rauscher ...................... 29,000 1,729
Metris ............................. 83,000 3,071
--------
4,800
--------
GAS & NATURAL GAS -- 1.7%
Nicor .............................. 112,000 4,109
Southwest Gas ...................... 18,800 361
--------
4,470
--------
MEASURING DEVICES -- 0.6%
Molecular Devices* ................. 28,400 1,516
--------
MEDICAL & MEDICAL SERVICES -- 10.6%
Arthrocare* ........................ 16,600 1,415
Aspect Medical Systems*# ........... 35,000 997
Avigen*# ........................... 35,500 1,056
Caliper Technologies* .............. 35,000 1,437
Cardiodynamics International* ...... 295,000 1,715
Cytyc*# ............................ 55,000 2,760
Datascope .......................... 71,000 2,671
Endocare* .......................... 95,400 1,646
Hooper Holmes ...................... 284,400 2,915
Human Genome Sciences*# ............ 18,000 1,579
Incyte Pharmaceuticals* ............ 9,500 501
Millennium Pharmaceutical*# ........ 38,600 3,228
PolyMedica* ........................ 79,000 2,103
Priority Healthcare, Cl B* ......... 63,100 3,218
--------
27,241
--------
PETROLEUM & FUEL PRODUCTS -- 10.0%
Cal Dive International* ............ 57,500 2,649
Cross Timbers Oil .................. 90,000 1,828
Global Industries* ................. 339,450 5,983
Pride International* ............... 216,500 5,507
UTI Energy* ........................ 116,000 4,959
Veritas DGC* ....................... 174,000 4,807
--------
25,733
--------
PHARMACEUTICALS -- 2.7%
King Pharmaceuticals*# 88,100 4,713
Sicor*# 272,000 2,329
--------
7,042
--------
See Accompanying Notes
38
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE SMALL CAPITALIZATION FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
PHOTOGRAPHIC EQUIPMENT & SUPPLIES -- 0.8%
Concord Camera* .................... 114,500 $ 1,939
--------
PRINTING & PUBLISHING -- 0.6%
Valassis Communications* ........... 47,600 1,571
--------
PROFESSIONAL SERVICES -- 1.0%
Corporate Executive Board* ......... 45,200 2,475
--------
RESTAURANTS -- 1.8%
Jack in the Box* ................... 190,500 4,727
--------
RETAIL -- 6.1%
99 Cents Only Stores*# ............. 57,600 2,070
BJ's Wholesale Club* ............... 98,600 3,057
Michaels Stores*# .................. 80,000 3,425
Rex Stores* ........................ 56,000 1,183
Too* ............................... 108,250 2,774
Tweeter Home Entertainment
Group* ............................ 105,000 3,058
--------
15,567
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 13.1%
ASM International N.V.* ............ 120,000 3,105
Asyst Technologies* ................ 27,000 1,090
Burr-Brown*# ....................... 41,500 2,363
Credence Systems* .................. 45,000 2,461
Cymer* ............................. 49,000 1,547
Exar* .............................. 58,500 4,022
Helix Technology ................... 38,600 1,315
Integrated Device Technology* ...... 62,000 2,941
Integrated Silicon Solutions* ...... 102,000 3,028
Metalink Limited*# ................. 82,000 2,050
Netsilicon* ........................ 50,600 727
PRI Automation, Cl A*# ............. 40,100 2,061
Silicon Storage Technology* ........ 39,700 2,948
Transwitch* ........................ 45,150 2,828
Zoran*# ............................ 29,400 1,154
--------
33,640
--------
TELEPHONE & TELECOMMUNICATION -- 5.6%
Alamosa Pcs Holdings* .............. 45,000 675
ICG Communications*# ............... 128,000 2,406
Intermedia*# ....................... 81,000 2,025
Leap Wireless International* ....... 24,500 1,078
Mastec* ............................ 66,300 4,533
SBA Communications* ................ 100,000 3,725
--------
14,442
--------
TRANSPORTATION -- 1.1%
CH Robinson Worldwide .............. 60,000 2,696
--------
TOTAL COMMON STOCK
(Cost $160,473) ............................. 225,383
--------
NUMBER OF VALUE
SHARES/PAR (000) (000)
--------------- ------
CASH EQUIVALENT -- 3.8%
Goldman Sachs
Financial Square Prime Obligation
Money Market Fund ................ 9,724,000 $ 9,724
--------
TOTAL CASH EQUIVALENT
(Cost $9,724) ............................... 9,724
--------
REPURCHASE AGREEMENT-- 7.8%
Prudential 6.400% (dated 5/31/00,
matures 06/01/00, repurchase price
$20,003,556; collateralized by
FHLMC and FNMA obligations:
total market value $20,405,509 ... $20,000 20,000
--------
TOTAL REPURCHASE AGREEMENT
(Cost $20,000) .............................. 20,000
--------
TOTAL INVESTMENTs -- 99.4%
(Cost $190,197) ............................. $255,107
========
OTHER ASSETS AND LIABILITIES,
Net -- 0.6% .................................. 1,453
--------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no
par value) based on 7,525,603
outstanding shares of beneficial
interest .................................... $ 87,583
Portfolio Shares of Investor A
(unlimited authorization -- no
par value) based on 1,715,264
outstanding shares of beneficial
interest .................................... 30,480
Portfolio Shares of Investor B
(unlimited authorization -- no
par value) based on 767,093
outstanding shares of beneficial
interest .................................... 32,767
Accumulated net realized gain
on investments and futures .................. 40,820
Net unrealized appreciation on
investments ................................. 64,910
--------
TOTAL NET ASSETS -- 100.0% ...................... $256,560
========
See Accompanying Notes
39
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE SMALL CAPITALIZATION FUND
================================================================================
MAY 31, 2000
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- INSTITUTIONAL .................... $25.88
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR A ............. $25.25
======
MAXIMUM OFFERING PRICE
PER SHARE -- INVESTOR A
($25.25 / 94.5%) .......................... $26.72
======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- INVESTOR B .............. $24.06
======
----------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
CL--CLASS
FHLMC--FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
See Accompanying Notes
40
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE EQUITY INCOME FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- 95.6%
AEROSPACE -- 4.3%
General Dynamics .................. 66,600 $ 3,934
Northrop Grumman# ................. 55,100 4,222
United Technologies ............... 33,200 2,007
-------
10,163
-------
AUTOMOTIVE -- 3.1%
Ford .............................. 48,700 2,365
General Motors# ................... 25,100 1,773
Genuine Parts ..................... 82,500 1,970
TRW ............................... 26,700 1,295
-------
7,403
-------
BANKS -- 11.7%
Bank of America ................... 83,079 4,616
Charter One Financial ............. 193,300 4,398
Comerica .......................... 46,400 2,349
PNC ............................... 70,100 3,531
Southtrust ........................ 152,800 4,135
SunTrust .......................... 76,800 4,589
UnionBanCal ....................... 122,700 4,202
-------
27,820
-------
BUILDING & CONSTRUCTION SUPPLIES -- 1.0%
Masco ............................. 83,300 1,640
Sherwin Williams .................. 29,300 681
-------
2,321
-------
CHEMICALS -- 2.3%
Dow ............................... 29,600 3,169
E.I. DuPont de Nemours ............ 24,000 1,176
RPM ............................... 111,400 1,086
-------
5,431
-------
COMPUTERS -- 1.9%
Hewlett Packard ................... 19,000 2,282
International Business
Machines ......................... 20,900 2,243
-------
4,525
-------
DIVERSIFIED MANUFACTURING -- 1.7%
Emerson Electric .................. 31,300 1,847
Minnesota Mining &
Manufacturing .................... 26,000 2,229
-------
4,076
-------
DRUGS & HEALTH CARE -- 1.1%
American Home Products ............ 46,600 2,511
-------
ELECTRICAL SERVICES -- 3.5%
Consolidated Edison ............... 34,300 1,119
Dominion Resources of
Virginia ......................... 45,992 2,104
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
ELECTRICAL SERVICES -- CONTINUED
Duke Energy ....................... 29,700 $ 1,730
FPL Group ......................... 30,100 1,490
LG&E Energy ....................... 52,400 1,241
Texas Utilities ................... 16,200 579
-------
8,263
-------
FINANCIAL SERVICES -- 4.3%
Citigroup ......................... 54,400 3,383
Fannie Mae ........................ 64,400 3,872
Freddie Mac ....................... 64,200 2,857
-------
10,112
-------
FOOD & BEVERAGE -- 3.5%
Flowers Industries ................ 105,400 1,904
General Mills ..................... 97,800 3,881
Sara Lee .......................... 145,200 2,614
-------
8,399
-------
GAS & NATURAL GAS -- 2.7%
Enron ............................. 73,100 5,327
KeySpan# .......................... 32,200 982
-------
6,309
-------
HANDTOOLS & GENERAL HARDWARE -- 1.8%
Fortune Brands .................... 104,300 2,777
Snap-On Tools ..................... 58,000 1,490
-------
4,267
-------
HOUSEHOLD PRODUCTS -- 0.4%
Maytag ............................ 29,400 963
-------
INSURANCE -- 6.1%
Allstate .......................... 49,566 1,313
Chubb ............................. 37,000 2,590
Cigna ............................. 33,200 2,949
Marsh & McLennan .................. 31,200 3,434
Metlife*# ......................... 153,600 3,149
St. Paul .......................... 25,500 956
-------
14,391
-------
MACHINERY -- 1.6%
Caterpillar ....................... 29,600 1,132
Deere ............................. 33,600 1,396
Pall .............................. 60,000 1,260
-------
3,788
-------
MEDICAL & MEDICAL SERVICES -- 1.0%
Baxter International .............. 37,200 2,474
-------
METALS & MINING -- 2.3%
Alcoa ............................. 62,500 3,652
USX-U.S. Steel Group .............. 83,700 1,888
-------
5,540
-------
See Accompanying Notes
41
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE EQUITY INCOME FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
MISCELLANEOUS MANUFACTURING -- 0.5%
Textron ........................... 19,300 $ 1,211
--------
OFFICE & BUSINESS EQUIPMENT -- 2.3%
Pitney Bowes ...................... 62,200 2,706
Xerox ............................. 98,600 2,675
--------
5,381
--------
PAPER & FOREST PRODUCTS -- 2.5%
Bowater ........................... 11,600 600
Kimberly-Clark .................... 29,900 1,809
Temple-Inland ..................... 19,700 979
Westvaco .......................... 37,200 1,121
Weyerhaeuser ...................... 29,000 1,439
--------
5,948
--------
PETROLEUM & FUEL PRODUCTS -- 0.9%
Burlington Resources .............. 48,900 2,237
--------
PETROLEUM REFINING -- 13.1%
BP Amoco, ADR ..................... 85,836 4,667
Chevron ........................... 55,000 5,084
Conoco ............................ 98,000 2,793
Exxon Mobil ....................... 97,635 8,134
Royal Dutch Petroleum, ADR ........ 51,800 3,234
Texaco ............................ 74,000 4,250
Ultramar Diamond Shamrock ......... 108,400 2,812
--------
30,974
--------
PRINTING & PUBLISHING -- 1.0%
Knight-Ridder ..................... 20,600 1,092
New York Times, Cl A .............. 30,400 1,167
--------
2,259
--------
PROFESSIONAL SERVICES -- 2.8%
Dun & Bradstreet .................. 78,600 2,417
Halliburton ....................... 81,600 4,162
--------
6,579
--------
REAL ESTATE INVESTMENT TRUSTS -- 3.7%
Arden Realty ...................... 122,100 2,808
Developers Diversified Realty ..... 79,000 1,141
Duke Weeks Realty ................. 122,700 2,646
Kimco Realty# ..................... 30,400 1,231
Mack-Cali Realty .................. 33,200 896
--------
8,722
--------
RETAIL -- 3.0%
Intimate Brands ................... 65,980 1,555
May Department Stores ............. 84,150 2,530
Nordstrom ......................... 40,900 1,028
Sears Roebuck ..................... 51,050 1,886
--------
6,999
--------
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
SPECIALTY MACHINERY -- 1.6%
Cooper Industries ................. 38,700 $ 1,296
Hubbell ........................... 45,100 1,189
Thomas & Betts .................... 49,100 1,393
--------
3,878
--------
STEEL & STEEL WORKS -- 0.3%
Nucor ............................. 18,500 719
--------
TELEPHONE & TELECOMMUNICATION -- 8.6%
AT&T .............................. 127,900 4,437
Bell Atlantic ..................... 38,500 2,036
BellSouth ......................... 87,000 4,062
GTE ............................... 80,300 5,079
SBC Communications ................ 111,161 4,856
--------
20,470
--------
TOBACCO -- 0.7%
UST ............................... 99,700 1,657
--------
UTILITIES -- 0.3%
American Water Works .............. 30,200 706
--------
TOTAL COMMON STOCK
(Cost $201,766) ............................. 226,496
--------
PREFERRED STOCK -- 1.7%
FINANCIAL SERVICES -- 1.3%
American General Delaware, CV
to 1.2288 Shares ................. 38,500 3,041
--------
PAPER & FOREST PRODUCTS -- 0.4%
International Paper, CV
to .9259 Shares* ................. 21,200 877
--------
TOTAL PREFERRED STOCK
(Cost $3,969) ............................... 3,918
--------
CASH EQUIVALENT -- 2.6%
Goldman Sachs Financial Square
Prime Obligation Money Market
Fund ............................ 6,304,403 6,304
--------
TOTAL CASH EQUIVALENT
(Cost $6,304) ............................... 6,304
--------
TOTAL INVESTMENTS -- 99.9%
(Cost $212,039) ............................. $236,718
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.1% ................................. 213
--------
See Accompanying Notes
42
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE EQUITY INCOME FUND
================================================================================
MAY 31, 2000
VALUE
(000)
------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no
par value) based on 18,565,892
outstanding shares of beneficial
interest ......................... $136,632
Portfolio Shares of Investor A
(unlimited authorization -- no
par value) based on 4,275,390
outstanding shares of
beneficial interest .............. 55,625
Portfolio Shares of Investor B
(unlimited authorization -- no
par value) based on 1,372,942
outstanding shares of beneficial
interest ......................... 22,426
Undistributed net investment income 208
Accumulated net realized loss
on investments and futures ....... (2,639)
Net unrealized appreciation on
investments ...................... 24,679
--------
TOTAL NET ASSETS -- 100.0%........... $236,931
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- INSTITUTIONAL ........... $9.77
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- INVESTOR A ..... $9.86
========
MAXIMUM OFFERING PRICE PER
SHARE -- INVESTOR A
($9.86 / 94.5%) .................. $10.43
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- INVESTOR B .... $9.72
========
------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
CV--CONVERTIBLE
ADR--AMERICAN DEPOSITORY RECEIPT
See Accompanying Notes
43
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE EQUITY INCOME FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- 41.1%
AEROSPACE -- 1.1%
General Dynamics .................. 11,700 $ 691
Northrop Grumman .................. 9,300 713
United Technologies ............... 4,100 248
--------
1,652
--------
AUTOMOTIVE -- 0.8%
General Motors .................... 5,500 388
Genuine Parts ..................... 24,400 583
TRW ............................... 5,800 281
--------
1,252
--------
BANKS -- 2.4%
Bank of America ................... 14,300 795
Charter One Financial ............. 24,100 548
Imperial Bancorp* ................. 81 1
PNC ............................... 14,500 730
Southtrust ........................ 17,300 468
SunTrust .......................... 7,200 430
UnionBanCal ....................... 17,300 593
--------
3,565
--------
BUILDING & CONSTRUCTION SUPPLIES -- 0.4%
Masco ............................. 21,800 429
Trex* ............................. 4,150 185
--------
614
--------
CHEMICALS -- 0.8%
Dow ............................... 7,500 803
RPM ............................... 35,300 344
--------
1,147
--------
COMMUNICATIONS EQUIPMENT -- 1.1%
C-COR Electronics* ................ 5,300 117
Commscope* ........................ 9,250 357
Mercury Computer Systems* ......... 4,350 136
Nortel Networks ................... 4,030 219
Qualcomm* ......................... 9,000 597
Sawtek* ........................... 4,250 273
--------
1,699
--------
COMPUTER COMMUNICATIONS EQUIPMENT -- 0.2%
Optimal Robotics* ................. 5,150 173
Sonicwall* ........................ 2,850 172
--------
345
--------
COMPUTER HARDWARE -- 2.2%
Cisco Systems* .................... 34,300 1,953
EMC* .............................. 10,700 1,245
--------
3,198
--------
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
COMPUTER SERVICES -- 0.1%
Business Objects* ................. 1,500 $ 120
--------
COMPUTER SOFTWARE -- 1.3%
Mercury Interactive* .............. 3,750 318
Micromuse* ........................ 3,200 319
Microsoft* ........................ 20,500 1,283
Onyx Software* .................... 3,400 58
--------
1,978
--------
DIVERSIFIED MANUFACTURING -- 2.0%
General Electric .................. 44,700 2,352
Minnesota Mining &
Manufacturing .................... 6,600 566
--------
2,918
--------
DRUGS & HEALTH CARE -- 1.6%
Pfizer ............................ 26,700 1,190
Warner-Lambert .................... 9,100 1,111
--------
2,301
--------
ELECTRICAL SERVICES -- 0.8%
Consolidated Edison ............... 13,700 447
Dominion Resources
of Virginia ...................... 10,300 471
LG&E Energy ....................... 10,500 249
--------
1,167
--------
ELECTRONICS -- 0.2%
CTS ............................... 3,150 174
Titan* ............................ 2,600 93
--------
267
--------
ENTERTAINMENT -- 0.2%
Macrovision* ...................... 4,200 293
--------
FINANCIAL SERVICES -- 1.6%
Citigroup ......................... 7,900 491
Fannie Mae ........................ 11,100 667
Freddie Mac ....................... 10,700 476
J.P. Morgan ....................... 5,200 670
--------
2,304
--------
FOOD & BEVERAGE -- 0.7%
General Mills ..................... 15,500 615
Sara Lee .......................... 21,600 389
--------
1,004
--------
GAS & NATURAL GAS -- 0.6%
Enron ............................. 12,500 911
--------
HANDTOOLS & GENERAL HARDWARE -- 0.4%
Fortune Brands .................... 21,200 564
--------
See Accompanying Notes
44
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE BALANCED ALLOCATION FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
INSURANCE -- 2.9%
American General .................. 8,100 $ 519
American International Group ...... 13,525 1,522
Chubb ............................. 13,500 945
Cigna ............................. 9,300 826
Metlife* .......................... 23,200 476
------
4,288
------
MACHINERY -- 0.3%
Caterpillar ....................... 10,100 386
------
MEDICAL & MEDICAL SERVICES -- 0.2%
Hooper Holmes ..................... 13,700 140
PolyMedica* ....................... 5,500 146
------
286
------
METALS & MINING -- 0.6%
Alcoa ............................. 14,500 847
------
MISCELLANEOUS MANUFACTURING -- 1.2%
Textron ........................... 5,600 351
Tyco International ................ 31,200 1,468
------
1,819
------
OFFICE & BUSINESS EQUIPMENT -- 0.6%
Pitney Bowes ...................... 9,700 422
Xerox ............................. 14,800 401
------
823
------
PAPER & FOREST PRODUCTS -- 0.6%
Kimberly-Clark .................... 4,000 242
Weyerhaeuser ...................... 12,100 600
------
842
------
PETROLEUM & FUEL PRODUCTS -- 0.2%
Veritas DGC* ...................... 9,200 254
------
PETROLEUM REFINING -- 3.2%
Chevron ........................... 14,100 1,303
Conoco ............................ 17,300 493
Exxon Mobil ....................... 16,500 1,375
Texaco ............................ 16,900 971
Ultramar Diamond Shamrock ......... 18,900 490
------
4,632
------
PHARMACEUTICALS -- 0.3%
King Pharmaceuticals* ............. 5,200 278
Titan Pharmaceuticals* ............ 8,250 209
------
487
------
PRINTING & PUBLISHING -- 1.0%
Knight-Ridder ..................... 7,700 408
Time Warner ....................... 13,200 1,042
------
1,450
------
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
PROFESSIONAL SERVICES -- 0.3%
Corporate Executive Board* ........ 1,300 $ 71
Diamond Technology Partners* ...... 1,550 98
Dun & Bradstreet .................. 8,500 261
------
430
------
REAL ESTATE INVESTMENT TRUSTS -- 0.9%
Arden Realty ...................... 21,200 488
Developers Diversified Realty ..... 12,900 186
Duke Realty ....................... 30,000 647
------
1,321
------
RETAIL -- 1.8%
Home Depot ........................ 19,587 956
May Department Stores ............. 19,700 592
Nordstrom ......................... 8,100 204
Too* .............................. 7,400 190
Wal-Mart .......................... 12,500 720
------
2,662
------
SEMI-CONDUCTORS/INSTRUMENTS -- 5.4%
Altera* ........................... 11,600 996
Analog Devices* ................... 17,500 1,348
ASM International N.V.* ........... 7,100 184
Burr-Brown* ....................... 4,450 253
Credence Systems* ................. 4,800 263
Cymer* ............................ 2,100 66
Exar* ............................. 5,200 358
Flextronics International* ........ 2,496 136
Helix Technology .................. 1,850 63
Integrated Device Technology* ..... 3,650 173
Integrated Silicon Solutions* ..... 11,000 327
Intel ............................. 17,300 2,157
PRI Automation, Cl A* ............. 2,400 123
Silicon Storage Technology* ....... 2,350 175
Texas Instruments ................. 16,800 1,214
Transwitch* ....................... 2,650 166
------
8,002
------
SPECIALTY MACHINERY -- 0.7%
Cooper Industries ................. 10,500 352
Hubbell ........................... 11,100 293
Thomas & Betts .................... 12,700 360
------
1,005
------
TELEPHONE & TELECOMMUNICATION -- 2.2%
AT&T .............................. 15,600 541
Audiovox, Cl A* ................... 2,050 39
BellSouth ......................... 13,100 612
GTE ............................... 10,000 633
Mastec* ........................... 3,950 270
SBA Communications* ............... 5,900 220
SBC Communications ................ 21,000 917
------
3,232
------
See Accompanying Notes
45
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE BALANCED ALLOCATION FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
COMMON STOCK -- CONTINUED
TOBACCO -- 0.2%
UST ............................... 20,600 $ 342
------
TOTAL COMMON STOCK
(Cost $43,203) .............................. 60,407
------
FOREIGN COMMON STOCK -- 14.5%
AUSTRALIA -- 0.1%
National Australia Bank* .......... 8,314 124
------
AUSTRIA -- 0.1%
Mayr Melnhof Karton* .............. 3,728 178
------
CANADA -- 0.1%
Talisman Energy* .................. 3,250 105
------
DENMARK -- 0.1%
Novo-Nordisk, Series B ............ 877 146
------
FINLAND -- 0.5%
Nokia, ADR ........................ 12,221 636
Sonera Oyj ........................ 2,347 119
------
755
------
FRANCE -- 2.2%
Alcatel ........................... 2,550 142
Altran Technologies ............... 1,797 406
Aventis ........................... 4,706 307
Axa ............................... 2,707 401
Bouygues* ......................... 257 160
Castorama Dubois .................. 1,389 353
Coflexip Stena Offshore ........... 613 72
France Telecom .................... 668 98
Louis Vuitton-Moet Hennessy* ...... 376 154
Societe Television Francaise ...... 132 85
STMicroelectronics# ............... 1,956 117
Thomson Multimedia* ............... 2,105 220
Total Fina Elf, Cl B* ............. 2,871 455
Valeo ............................. 1,991 101
Vivendi ........................... 2,030 219
------
3,290
------
GERMANY -- 1.2%
Allianz*# ......................... 747 271
Brainpool TV* ..................... 263 24
Consors Discount-Broker* .......... 851 81
Deutsche Bank# .................... 3,358 261
Deutsche Telekom .................. 4,297 270
Epcos* ............................ 1,685 208
HypoVereinsbank ................... 1,944 127
Infineon Technologies* ............ 816 54
Infineon Technologies, ADR* ....... 155 10
Muenchener Rueckversicher* ........ 533 157
Siemens ........................... 2,085 310
------
1,773
------
NUMBER VALUE
OF SHARES (000)
--------- ------
FOREIGN COMMON STOCK -- CONTINUED
HONG KONG -- 0.5%
Cheung Kong* ...................... 12,318 $ 113
China Telecom (Hong Kong)* ........ 26,240 196
HSBC Holdings* .................... 12,266 135
Hutchison Whampoa* ................ 16,240 187
Johnson Electric Holdings* ........ 20,515 152
------
783
------
IRELAND -- 0.0%
Parthus Technologies* ............. 2,200 5
------
ITALY -- 0.7%
Assicurazioni Generali# ........... 6,349 192
Bipop-Carire ...................... 15,280 139
Bulgari* .......................... 12,781 161
Saipem* ........................... 29,605 149
Telecom Italia* ................... 19,750 274
Telecom Italia Mobile*# ........... 13,860 145
------
1,060
------
JAPAN -- 2.7%
Canon* ............................ 3,000 138
Chugai Pharmaceutical*# ........... 17,604 301
Fanuc ............................. 666 58
Fuji Bank* ........................ 25,000 193
NEC* .............................. 14,642 371
Nikko Securities .................. 15,849 147
NTT Docomo* ....................... 20 516
Sanyo Electric .................... 21,000 155
Sekisui House* .................... 21,930 213
Seven-Eleven ...................... 1,719 152
SMC ............................... 1,429 251
Softbank# ......................... 507 78
Sony* ............................. 2,037 184
Takeda Chemical Industries* ....... 5,250 358
Tokyo Electron .................... 1,636 223
Toyota Motor* ..................... 6,417 291
Yahoo Japan* ...................... 1 329
------
3,958
------
MEXICO -- 0.1%
Cemex, ADR* ....................... 4,773 101
------
NETHERLANDS -- 0.9%
Aegon ............................. 3,784 137
Heineken* ......................... 4,484 231
ING Groep* ........................ 3,697 222
Philips Electronics ............... 4,800 215
Qiagen, ADR* ...................... 400 61
Royal Dutch Petroleum* ............ 3,764 233
Unilever .......................... 5,526 282
------
1,381
------
See Accompanying Notes
46
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE BALANCED ALLOCATION FUND
================================================================================
MAY 31, 2000
NUMBER VALUE
OF SHARES (000)
--------- ------
FOREIGN COMMON STOCK -- CONTINUED
NORWAY -- 0.3%
Norsk Hydro* ...................... 6,053 $ 234
Tomra Systems ..................... 10,200 217
------
451
------
SINGAPORE -- 0.4%
City Developments ................. 28,947 97
DBS Group Holdings ................ 18,981 190
Singapore Press Holdings* ......... 15,351 231
------
518
------
SOUTH KOREA -- 0.2%
Korea Electric Power, ADR ......... 4,899 77
Samsung Electronics, ADR* ......... 657 106
SK Telecom, ADR ................... 3,000 120
------
303
------
SPAIN -- 0.3%
Banco Santander Central
Hispano .......................... 10,877 107
Endesa* ........................... 5,263 110
Telefonica* ....................... 10,478 216
Terra Networks* ................... 483 22
------
455
------
SWEDEN -- 0.2%
LM Ericsson, ADR .................. 12,648 259
------
SWITZERLAND -- 0.9%
Adecco ............................ 152 121
Credit Suisse Group*# ............. 882 165
Holderbank Financiere Glarus* ..... 201 237
Julius Baer Holdings .............. 80 288
Nestle*# .......................... 73 140
Novartis* ......................... 148 219
Roche Holding* .................... 18 191
------
1,361
------
TAIWAN -- 0.2%
Taiwan Semiconductor, ADR* ........ 6,201 219
------
UNITED KINGDOM -- 2.8%
Abbey National .................... 11,184 149
Amvescap .......................... 10,771 142
Barclays .......................... 8,571 224
Bass .............................. 8,252 91
BOC Group ......................... 4,567 64
BP Amoco .......................... 23,997 219
BP Amoco, ADR ..................... 14,051 764
British Telecom ................... 1,044 15
Colt Telecom Group* ............... 1,971 70
Compass Group ..................... 20,938 235
Diageo* ........................... 34,193 293
NUMBER OF VALUE
MATURITY SHARES/PAR (000) (000)
-------- ---------------- ------
FOREIGN COMMON STOCK -- CONTINUED
UNITED KINGDOM -- CONTINUED
Energis* .......................... 3,066 $ 117
Invensys .......................... 36,380 126
Marconi ........................... 9,860 119
National Grid Holdings ............ 24,262 187
Pearson ........................... 8,759 265
Ryanair Holdings* ................. 13,333 108
Scottish Power .................... 16,666 133
SmithKline Beecham ................ 6,077 78
Standard Chartered ................ 6,656 86
Vodafone Group .................... 128,597 589
------
4,074
------
TOTAL FOREIGN COMMON STOCK
(Cost $17,058) .............................. 21,299
------
CORPORATE BONDS -- 6.4%
BANKS -- 0.9%
First Chicago Bank One
6.875% ............. 06/15/03 $ 600 581
First Union
6.950% ............. 11/01/04 705 681
------
1,262
------
BUILDING & CONSTRUCTION -- 0.4%
Armstrong World
7.450% ............. 05/15/29 945 638
------
COMPUTER SOFTWARE -- 0.8%
Computer Associates
6.250% ............. 04/15/03 1,275 1,200
------
ELECTRICAL SERVICES -- 0.3%
Western Resources
6.875% ............. 08/01/04 515 433
------
FINANCIAL SERVICES -- 0.5%
Ford Motor Credit
7.375% ............. 10/28/09 800 763
------
INSURANCE -- 0.4%
Conseco
8.750% ............. 02/09/04 670 462
Fairfax Financial Holdings
7.375% ............. 04/15/18 250 178
------
640
------
LEISURE -- 0.5%
Hasbro
7.950% ............. 03/15/03 775 770
------
See Accompanying Notes
47
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE BALANCED ALLOCATION FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
-------- --------- ------
CORPORATE BONDS -- CONTINUED
REAL ESTATE INVESTMENT TRUSTS -- 1.2%
Arden Realty (A)
8.875% ............. 03/01/05 $ 670 $ 653
United Dominion Realty
8.625% ............. 03/15/03 1,050 1,040
-------
1,693
-------
RETAIL -- 0.7%
J.C. Penney
6.125% ............. 11/15/03 300 264
7.600% ............. 04/01/07 845 710
-------
974
-------
STEEL & STEEL WORKS -- 0.2%
Worthington Industries
6.700% ............. 12/01/09 355 320
-------
WHOLESALE -- 0.5%
Arrow Electronic
6.875% ............. 06/01/18 835 724
-------
TOTAL CORPORATE BONDS
(Cost $10,185) .............................. 9,417
-------
ASSET BACKED SECURITIES -- 5.7%
Capital One Master Trust,
Series 2000-1, Cl A
7.100% ............. 04/17/06 825 818
Champion Home Equity Loan Trust,
Series 1997-2, Cl A5
6.710% ............. 09/25/29 350 334
DVI Receivables, Series 2000-1, Cl A4
7.780% ............. 06/14/08 600 598
First Security Auto Owner Trust,
Series 1999-1, Cl A4
5.740% ............. 06/15/04 1,180 1,144
Flagship Auto Receivables Owner
Trust, Series 1999-2, Cl A3
6.835% ............. 11/18/04 290 286
IMC Home Equity Loan Trust,
Series 1997-7, Cl A5
6.760% ............. 10/20/20 1,600 1,561
Metris Master Trust, Series
1997-1, Cl A
6.870% ............. 10/20/05 645 638
New Century Home Equity Loan
Trust, Series 1997-NC6, Cl A6
7.010% ............. 05/25/26 1,000 956
Residential Funding Mortgage
Securities I, Series 2000-HI1, Cl AI2
7.580% ............. 09/25/10 690 683
PAR VALUE
MATURITY (000) (000)
-------- --------- ------
ASSET BACKED SECURITIES -- CONTINUED
Saxon Asset Security Trust,
Series 1999-3, Cl AF6
7.525% ............. 06/25/14 $ 700 $ 682
Vanderbilt Mortgage Finance,
Series 2000-B, Cl A3
8.255% ............. 05/07/17 610 609
-------
TOTAL ASSET BACKED SECURITIES
(Cost $8,491) ............................... 8,309
-------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 3.7%
Credit Suisse First Boston Mortgage
Securities, Series 1997-C1, Cl A1C
7.240% ............. 04/20/07 1,200 1,162
PNC Trust, Series 1998-7, Cl A5
6.750% ............. 09/25/28 1,748 1,586
Prudential Securities Secured
Financing, Series 1998-C1, Cl A1A3
6.350% ............. 09/15/07 1,130 1,049
Prudential Securities Secured
Financing, Series 1999-NRF1, Cl A2
6.480% ............. 01/15/09 215 196
Prudential Securities Secured
Financing, Series 1998-C1, Cl A1B
6.506% ............. 07/15/08 600 551
Residential Asset Securitization Trust,
Series 2000-A3, Cl A2
8.000% ............. 05/25/30 873 867
-------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $5,684) ............................... 5,411
-------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 10.4%
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 2.3%
6.000% ............. 08/01/28 481 432
6.500% ............. 06/01/29 372 344
7.000% ............. 09/01/27 2,790 2,660
-------
3,436
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-- 7.0%
6.500% . 09/15/23 to 06/15/29 2,579 2,427
7.500% . 09/15/02 to 08/15/25 7,444 7,326
8.000% ............. 01/15/30 514 516
-------
10,269
-------
See Accompanying Notes
48
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE BALANCED ALLOCATION FUND
================================================================================
MAY 31, 2000
NUMBER OF VALUE
MATURITY SHARES/PAR (000) (000)
-------- ---------------- ------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
UNITED STATES DEPARTMENT OF VETERAN AFFAIRS -- 1.1%
6.500% ............. 06/15/25 $ 985 $ 909
7.250% ............. 12/15/15 743 740
--------
1,649
--------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $15,612) .............................. 15,354
--------
U.S. TREASURY OBLIGATIONS -- 8.8%
U.S. TREASURY BOND -- 3.8%
6.250% ............. 08/15/23 5,675 5,606
--------
U.S. TREASURY NOTES -- 5.0%
6.125% ............. 08/15/07 855 836
6.250% ............. 10/31/01 6,525 6,481
--------
7,317
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $12,865) .............................. 12,923
--------
CASH EQUIVALENT -- 4.0%
Goldman Sachs Financial Square
Prime Obligation Money Market
Fund ............................ 5,846,000 5,846
--------
TOTAL CASH EQUIVALENT
(Cost $5,846) ............................... 5,846
--------
REPURCHASE AGREEMENT -- 5.3%
Prudential 6.400% (dated 05/31/00,
matures 06/01/00, repurchase
price $7,801,387; collateralized
by FHLMC obligations: market
value $7,970,500) ............... $ 7,800 7,800
--------
TOTAL REPURCHASE AGREEMENT
(Cost $7,800) ............................... 7,800
--------
TOTAL INVESTMENTS -- 99.9%
(Cost $126,744) ............................. $146,766
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.1% ................................. 217
--------
VALUE
(000)
------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no
par value) based on 9,291,113
outstanding shares of beneficial
interest .................................... $ 96,085
Portfolio Shares of Investor A
(unlimited authorization -- no
par value) based on 911,640
outstanding shares of beneficial
interest .................................... 9,745
Portfolio Shares of Investor B
(unlimited authorization -- no
par value) based on 352,183
outstanding shares of beneficial
interest .................................... 4,503
Distributions in excess of net
investment income ........................... (21)
Accumulated net realized gain
on investments and futures .................. 16,649
Net unrealized appreciation on
investments ................................. 20,022
--------
TOTAL NET ASSETS -- 100.0% ..................... $146,983
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE --
INSTITUTIONAL ............................... $13.92
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR A ............... $13.94
========
MAXIMUM OFFERING PRICE
PER SHARE -- INVESTOR A
($13.94 / 95.25%) ........................... $14.64
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- INVESTOR B ............... $13.94
========
------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
(A) PRIVATE PLACEMENT SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
CL--CLASS
FHLMC--FEDERAL HOME LOAN MORTGAGE CORPORATION
See Accompanying Notes
49
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE BOND FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
-------- ------- -------
CORPORATE BONDS -- 20.8%
BANKS -- 2.3%
First Chicago Bank One
6.875% 06/15/03 $3,370 $ 3,265
First Union
6.950% 11/01/04 3,945 3,812
-------
7,077
-------
BUILDING & CONSTRUCTION -- 1.8%
Armstrong World
7.450% ............. 05/15/29 6,915 4,668
Pulte
7.000% ............. 12/15/03 965 907
-------
5,575
-------
CONSULTING SERVICES -- 0.3%
Comdisco
6.000% ............. 01/30/02 1,000 965
-------
ELECTRICAL SERVICES -- 1.2%
Western Resources
6.875% ............. 08/01/04 4,525 3,801
-------
FINANCIAL SERVICES -- 1.7%
Ford Motor Credit Global
6.700% ............. 07/16/04 5,420 5,190
-------
INSURANCE -- 3.6%
Anthem Insurance (B)
9.125% ............. 04/01/10 6,000 5,453
Conseco
8.750% ............. 02/09/04 3,700 2,553
Fairfax Financial Holdings
7.375% ............. 04/15/18 4,375 3,117
-------
11,123
-------
LEISURE -- 1.3%
Hasbro
7.950% ............. 03/15/03 3,965 3,944
-------
METAL PROCESSORS & FABRICATION -- 1.1%
Precision Castparts (B)
8.750% ............. 03/15/05 3,300 3,275
-------
REAL ESTATE INVESTMENT TRUSTS -- 2.0%
Arden Realty (B)
8.875% ............. 03/01/05 3,115 3,037
EOP Operating LP
8.375% ............. 03/15/06 1,850 1,827
United Dominion Realty
8.625% ............. 03/15/03 1,200 1,189
-------
6,053
-------
PAR VALUE
MATURITY (000) (000)
-------- ------- -------
CORPORATE BONDS -- CONTINUED
RETAIL -- 2.6%
J.C. Penney
6.125% ............. 11/15/03 $2,745 $ 2,412
7.600% ............. 04/01/07 6,680 5,611
-------
8,023
-------
STEEL & STEEL WORKS -- 0.5%
Worthington Industries
6.700% ............. 12/01/09 1,705 1,541
-------
WHOLESALE -- 2.4%
Arrow Electronic
6.875% ............. 06/01/18 4,715 4,087
Universal
8.500% ............. 02/28/03 3,225 3,284
-------
7,371
-------
TOTAL CORPORATE BONDS
(Cost $68,801) .............................. 63,938
-------
ASSET BACKED SECURITIES -- 16.9%
Amresco Residential Mortgage,
Series 1997-1, Cl B1A (A)
4.710% ............. 03/25/27 2,432 2,380
Amresco Securitized Net Interest
Margin, Series 1999-1A, Cl A
9.100% ............. 09/27/29 3,945 3,630
Capital One Master Trust,
Series 2000-1, Cl A
7.100% ............. 04/17/06 2,400 2,378
Champion Home Equity Loan Trust,
Series 1997-2, Cl A5
6.710% ............. 09/25/29 1,965 1,875
Continental Auto Receivables,
Series 2000-A, Cl A3
7.380% ............. 02/15/04 3,250 3,238
DVI Receivables, Series 2000-1, Cl A4
7.780% ............. 06/14/08 800 797
First Security Auto Owner Trust,
Series 1999-1, Cl A4
5.740% ............. 06/15/04 5,260 5,101
Flagship Auto Receivables Owner
Trust, Series 1999-2, Cl A3
6.835% ............. 11/18/04 1,600 1,578
IMC Home Equity Loan Trust,
Series 1997-7, Cl A5
6.760% ............. 10/20/20 7,790 7,599
Metris Master Trust,
Series 1997-1, Cl A
6.870% ............. 10/20/05 3,385 3,353
See Accompanying Notes
50
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE BOND FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
-------- ------- -------
ASSET BACKED SECURITIES -- CONTINUED
New Century Home Equity Loan
Trust, Series 1997-NC6, Cl A6
7.010% ............. 05/25/26 $4,550 $ 4,349
Option One Mortgage Loan Trust,
Series 2000-1, Cl M2 (A)
6.940% ............. 04/25/30 2,000 1,996
Pegasus Aviation Lease
Securitization, Series 1999-1,
Cl A1 (B)
6.300% ............. 03/25/29 4,168 3,974
Residential Funding Mortgage
Securities I, Series 2000-HI1, Cl AI2
7.580% ............. 09/25/10 3,500 3,463
Saxon Asset Security Trust,
Series 1999-3, Cl AF6
7.525% ............. 06/25/14 3,460 3,369
Vanderbilt Mortgage Finance,
Series 2000-B, Cl A3
8.255% ............. 05/07/17 2,795 2,788
-------
TOTAL ASSET BACKED SECURITIES
(Cost $53,162) .............................. 51,868
-------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 12.5%
Credit Suisse First Boston Mortgage
Securities, Series 1997-C1, Cl A1C
7.240% ............. 04/20/07 9,000 8,717
GE Capital Mortgage Services,
Series 1999-15, Cl A1
6.750% ............. 08/25/29 4,487 4,305
Housing Securities, Series 1993-G,
Cl G9
7.500% ............. 01/25/09 3,719 3,677
Housing Securities, Series 1994-I,
Cl A15
7.500% ............. 03/25/09 996 982
PNC Trust, Series 1998-7, Cl A5
6.750% ............. 09/25/28 6,418 5,821
Prudential Securities Secured
Financing, Series 1998-C1, Cl A1A3
6.350% ............. 09/15/07 5,780 5,365
Prudential Securities Secured
Financing, Series 1998-C1, Cl A1B
6.506% ............. 07/15/08 . 6,500 5,964
Prudential Securities Secured
Financing, Series 1999-NRF1, Cl A2
6.480% ............. 01/15/09 90 82
COLLATERALIZED MORTGAGE
OBLIGATIONS -- CONTINUED
Residential Asset Securitization
Trust, Series 2000-A3, Cl A2
8.000% ............. 05/25/30 $3,514 $ 3,489
-------
TOTAL COLLATERIZED
MORTGAGE OBLIGATIONS
(Cost $39,883) .............................. 38,402
-------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 29.4%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.6%
7.000% ............. 11/01/28 3,150 3,002
9.000% ............. 05/01/20 596 616
9.500% ............. 10/01/20 1,388 1,461
-------
5,079
-------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 8.6%
6.000% . 07/01/28 to 03/01/29 18,482 16,599
6.500% . 08/01/27 to 08/01/29 7,473 6,931
9.000% . 08/01/09 to 11/01/24 2,682 2,774
-------
26,304
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 16.2%
6.500% . 09/15/23 to 06/15/29 24,984 23,423
7.500% . 04/15/23 to 12/15/29 24,261 23,877
8.000% ............. 01/15/30 2,310 2,317
-------
49,617
-------
UNITED STATES DEPARTMENT OF VETERAN AFFAIRS -- 3.0%
6.500% ............. 06/15/25 5,455 5,032
7.250% ............. 12/15/15 4,065 4,050
-------
9,082
-------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $93,078) .............................. 90,082
-------
See Accompanying Notes
51
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE BOND FUND
================================================================================
MAY 31, 2000
PAR (000)/NUMBER VALUE
MATURITY OF SHARES (000)
--------- ---------------- --------
U.S. TREASURY OBLIGATIONS -- 18.4%#
U.S. TREASURY BOND-- 8.8%
6.250% ............. 08/15/23 $ 27,400 $ 27,066
--------
U.S. TREASURY INFLATIONARY PROTECTION SECURITY -- 1.6%#
3.625% ............. 04/15/28 5,277 4,963
--------
U.S. TREASURY NOTES -- 8.0%#
6.125% ............... 08/15/07 1,480 1,447
6.250% ............... 10/31/01 22,395 22,245
6.500% ............... 05/15/05 785 783
--------
24,475
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $56,027) .............................. 56,504
--------
CASH EQUIVALENT -- 2.1%
Goldman Sachs Financial Square
Prime Obligation Money Market
Fund .......................... 6,350,000 6,350
--------
TOTAL CASH EQUIVALENT
(Cost $6,350) ............................... 6,350
--------
TOTAL INVESTMENTS -- 100.1%
(Cost $317,301) ............................. $307,144
========
OTHER ASSETS AND LIABILITIES,
NET -- (0.1%) ............................... (226)
--------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no par value)
based on 32,047,263 outstanding shares of
beneficial interest ......................... $323,815
Portfolio Shares of Investor A
(unlimited authorization -- no par value)
based on 1,120,974 outstanding shares of
beneficial interest ......................... 11,486
Portfolio Shares of Investor B
(unlimited authorization -- no par value)
based on 259,406 outstanding shares of
beneficial interest ......................... 2,496
Distributions in excess of net
investment income ........................... (45)
Accumulated net realized loss
on investments .............................. (20,677)
Net unrealized depreciation on investments ... (10,157)
--------
TOTAL NET ASSETS -- 100.0% ..................... $306,918
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- INSTITUTIONAL ...................... $9.18
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR A ............... $9.13
========
MAXIMUM OFFERING PRICE PER
SHARE -- INVESTOR A
($9.13 / 95.25%) ........................... $9.59
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- INVESTOR B ............... $9.15
========
--------------------------------------------------------
# SECURITY FULLY OR PARTIALLY ON LOAN.
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON MAY 31, 2000.
(B) PRIVATE PLACEMENT SECURITY
CL--CLASS
See Accompanying Notes
52
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- ------- -------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 53.9%
FEDERAL HOME LOAN BANK -- 5.9%
5.530% ............. 01/15/03 $ 5,000 $ 4,789
-------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.2%
8.000% ............. 05/01/17 360 364
8.750% ............. 04/01/17 584 605
-------
969
-------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 29.9%
6.000% ............. 02/01/29 1,419 1,275
6.250%# ............ 11/15/02 5,000 4,884
6.375% ............. 06/15/09 12,219 11,323
6.500% ............. 02/01/28 922 857
8.250% ............. 07/01/17 717 725
8.500% ............. 02/01/25 818 835
8.750% ............. 08/01/09 440 451
9.000% ..08/01/09 to 01/01/10 1,612 1,666
11.500% 05/01/10 469 503
13.000% 08/15/15 1,644 1,860
-------
24,379
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 15.3%
6.000% ............. 07/20/29 1,957 1,768
6.500% ............. 04/15/29 5,932 5,554
7.000% ............. 08/15/28 1,409 1,357
9.000% ..09/15/04 to 07/15/09 1,374 1,418
9.500% ..12/20/13 to 12/20/22 2,315 2,407
-------
12,504
-------
UNITED STATES DEPARTMENT OF VETERAN AFFAIRS -- 1.6%
6.500% ............. 06/15/25 1,420 1,310
-------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(COST $46,225) .............................. 43,951
-------
U.S. TREASURY OBLIGATIONS -- 42.9%
U.S. TREASURY INFLATIONARY PROTECTION SECURITY -- 6.3%
3.625%# ............ 01/15/08 5,286 5,092
-------
U.S. TREASURY NOTES -- 36.6%
5.750% ............... 11/15/00 5,500 5,485
6.125%# .............. 12/31/01 1,500 1,486
6.250%# .............. 10/31/01 13,000 12,913
6.500% ............... 05/15/05 10,000 9,970
-------
29,854
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $35,118) .............................. 34,946
-------
PAR (000)/NUMBER VALUE
MATURITY OF SHARES (000)
--------- ---------------- --------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 1.7%
Ryland Acceptance Corporation,
Series 17, Cl D
9.000% ............. 07/01/16 $ 1,291 $ 1,345
-------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $1,355) ............................... 1,345
-------
CASH EQUIVALENT -- 1.1%
Goldman Sachs Financial Square
Government Money
Market Fund ................... 913,325 913
-------
TOTAL CASH EQUIVALENT
(Cost $913) ................................. 913
-------
TOTAL INVESTMENTS -- 99.6%
(Cost $83,611) .............................. $81,155
=======
OTHER ASSETS AND LIABILITIES,
NET -- 0.4% ................................. 321
-------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no par value)
based on 7,746,979 outstanding shares of
beneficial interest ......................... $87,327
Portfolio Shares of Investor A
(unlimited authorization -- no par value)
based on 819,510 outstanding shares of
beneficial interest ......................... 9,987
Portfolio Shares of Investor B
(unlimited authorization -- no par value)
based on 58,590 outstanding shares of
beneficial interest ......................... 570
Distributions in excess of net investment
income ...................................... (8)
Accumulated net realized loss
on investments .............................. (13,944)
Net unrealized depreciation on investments ... (2,456)
-------
TOTAL NET ASSETS -- 100.0% $81,476
=======
See Accompanying Notes
53
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
================================================================================
MAY 31, 2000
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- INSTITUTIONAL ...................... $9.45
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR A ............... $9.45
=======
MAXIMUM OFFERING PRICE PER
SHARE -- INVESTOR A
($9.45 / 95.25%) ........................... $9.92
=======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- INVESTOR B ............... $9.43
=======
----------------------------------
CL--CLASS
See Accompanying Notes
54
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE LIMITED MATURITY BOND FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- ------- -------
CORPORATE BONDS -- 51.1%
BEAUTY PRODUCTS -- 1.3%
Dial
6.625% ............. 06/15/03 $1,500 $ 1,440
-------
BUILDING & CONSTRUCTION -- 1.7%
Centex (A)
6.540% ............. 07/27/00 1,920 1,918
-------
COMPUTER SOFTWARE -- 2.5%
Computer Associates
6.250% ............. 04/15/03 2,975 2,800
-------
CONSULTING SERVICES -- 2.3%
Comdisco
5.950% ............. 04/30/02 2,600 2,496
-------
ELECTRICAL SERVICES -- 6.1%
National Power
7.125% ............. 07/11/01 5,000 4,972
Western Resources
6.875% ............. 08/01/04 2,150 1,806
-------
6,778
-------
FINANCIAL SERVICES -- 6.0%
Case Credit
6.120% ............. 08/01/01 4,000 3,900
Centerpoint Properties, MTN
7.900% ............. 01/15/03 2,800 2,747
-------
6,647
-------
INSURANCE -- 0.7%
Conseco
7.875% ............. 12/15/00 1,000 800
-------
LEISURE -- 1.3%
Hasbro
7.950% ............. 03/15/03 1,460 1,452
-------
OFFICE EQUIPMENT -- 0.5%
Xerox
5.250% ............. 12/15/03 600 549
-------
PAPER & PAPER PRODUCTS -- 3.6%
Champion International
9.700% ............. 05/01/01 1,500 1,521
Temple-Inland
7.250% ............. 09/15/04 2,500 2,423
-------
3,944
-------
REAL ESTATE INVESTMENT TRUSTS -- 10.3%
Carramerica Realty
6.625% ............. 10/01/00 4,520 4,500
Franchise Financial
7.000% ............. 11/30/00 5,000 4,972
Prime Property Funding, Series II (B)
6.800% ............. 08/15/02 1,095 1,062
7.000% ............. 08/15/04 920 873
-------
11,407
-------
PAR VALUE
MATURITY (000) (000)
--------- ------- -------
CORPORATE BONDS -- CONTINUED
RETAIL -- 6.8%
Dillard
6.310% ............. 08/01/02 $ 2,750 $ 2,543
9.500% ............. 10/15/01 2,000 1,980
J.C. Penney
6.125% ............. 11/15/03 2,000 1,758
7.250% ............. 04/01/02 1,350 1,293
-------
7,574
-------
RUBBER & PLASTIC -- 2.0%
Armstrong World
6.350% ............. 08/15/03 2,500 2,169
-------
TRANSPORTATION -- 2.4%
General American Transportation
10.125% ............. 03/15/02 2,600 2,691
-------
TRUCKING -- 2.0%
JB Hunt
6.000% ............. 12/12/00 2,250 2,239
-------
WHOLESALE -- 1.6%
Universal
8.500% ............. 02/28/03 1,765 1,797
-------
TOTAL CORPORATE BONDS
(Cost $58,358) .............................. 56,701
-------
ASSET BACKED SECURITIES -- 30.7%
Americredit Receivables Trust,
Series 2000-A, Cl A3
7.150% ............. 08/05/04 1,330 1,325
Amresco, Series 1997-1, CL A (B)
7.545% ............. 09/26/27 4,356 3,942
Champion Home Equity Loan,
Series 1998-1, Cl A2
8.120% ............. 09/25/01 15,000 1,411
Empire Funding, Series 1999-1,
Cl A3
6.440% ............. 04/25/13 2,500 2,406
Flagship Auto Receivables
Owner Trust, Series 1999-2, Cl A3
6.835% ............. 11/18/04 6,000 5,919
Green Tree Recreational
Equipment & Consumer Trust,
Series 1997-B
6.550% ............. 07/15/28 1,637 1,603
Metris Master Trust, Series 1997-1,
Cl A
6.870% ............. 10/20/05 1,195 1,184
New Century Home Equity Loan
Trust, Series 1997-NC6, Cl A6
7.010% ............. 05/25/26 3,000 2,868
Pegasus Aviation Lease
Securitization,
Series 1999-1, Cl A1 (B)
6.300% ............. 03/25/29 2,551 2,433
See Accompanying Notes
55
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE LIMITED MATURITY BOND FUND
================================================================================
MAY 31, 2000
NUMBER OF VALUE
MATURITY SHARES/PAR (000) (000)
--------- --------------- -------
ASSET BACKED SECURITIES -- CONTINUED
Saxon Asset Trust,
Series 1997-17, CL AF3
7.375% ............. 11/25/23 $3,688 $ 3,661
Union Acceptance,
Series 1999-B, Cl A4
6.110% ............. 09/08/05 1,505 1,464
Westo, Series 1999-A, Cl A4
5.700% ............. 11/20/03 6,000 5,806
--------
TOTAL ASSET BACKED SECURITIES
(Cost $35,738) .............................. 34,022
--------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 4.2%
Merrill Lynch Mortgage Investors,
Series 1996-C1, Cl A1
7.150% ............. 04/25/28 1,925 1,895
Residential Asset Securitization
Trust, Series 1997-A1, Cl A1
7.000% ............. 03/25/27 726 722
Residential Asset Securitization
Trust, Series 2000-A3, Cl A2
8.000% ............. 05/25/30 2,067 2,052
--------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $4,775) ............................... 4,669
--------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 4.6%
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 1.9%
5.000% ............. 11/18/20 2,103 2,078
--------
UNITED STATES DEPARTMENT OF VETERAN AFFAIRS-- 2.7%
6.500% ............. 01/15/06 3,100 2,979
--------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $5,139) ............................... 5,057
--------
U.S. TREASURY NOTES -- 7.0%
6.250%# ............ 10/31/01 7,900 7,847
--------
TOTAL U.S. TREASURY NOTES
(Cost $7,878) ............................... 7,847
--------
CASH EQUIVALENT -- 1.6%
Goldman Sachs Financial Square
Prime Obligation Money Market
Fund .......................... 1,832,000 1,832
--------
PAR VALUE
MATURITY (000) (000)
--------- ------- -------
CASH EQUIVALENT -- CONTINUED
TOTAL CASH EQUIVALENT
(Cost $1,832) ............................... $ 1,832
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $113,720) ............................. $110,128
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.8% ................................. 849
--------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no par value)
based on 11,059,528 outstanding shares of
beneficial interest ......................... $113,318
Portfolio Shares of Investor A
(unlimited authorization -- no par value)
based on 976,413 outstanding shares of
beneficial interest ......................... 10,996
Portfolio Shares of Investor B
(unlimited authorization -- no par value)
based on 62,454 outstanding shares of
beneficial interest ......................... 611
Undistributed net investment income .......... 39
Accumulated net realized loss
on investments .............................. (10,395)
Net unrealized depreciation on investments ... (3,592)
--------
TOTAL NET ASSETS -- 100.0% $110,977
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- INSTITUTIONAL .................. $9.17
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR A ............... $9.17
========
MAXIMUM OFFERING PRICE
PER SHARE -- INVESTOR A
($9.17 / 97.25%) ............................ $9.43
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- INVESTOR B ............... $9.17
========
------------------------------------------------
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON MAY 31, 2000.
(B) PRIVATE PLACEMENT SECURITY
CL--CLASS
MTN--MEDIUM TERM NOTE
See Accompanying Notes
56
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE NATIONAL TAX EXEMPT BOND FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- -------- -------
MUNICIPAL BONDS -- 97.3%
ALASKA -- 1.5%
Anchorage (GO) (MBIA)
5.000% ............. 07/01/14 $ 1,100 $ 1,009
-------
ARKANSAS -- 0.3%
Arkansas Development Finance
Authority, Correction Facility
(RB) (MBIA)
4.800% ............. 11/15/06 200 194
-------
CONNECTICUT -- 5.5%
Connecticut Clean Water Fund (RB)
5.375% ............. 09/01/08 1,700 1,711
Connecticut Special Tax Obligation
Revenue (RB)
6.375% ............. 06/01/05 1,770 1,883
-------
3,594
-------
DELAWARE -- 1.6%
Delaware Transportation Authority,
Transportation & Delaware
Turnpike Revenue (RB) (ETM)
7.800% ............. 07/01/04 1,000 1,059
-------
FLORIDA -- 5.1%
Florida Board of Education (GO)
9.125% ............. 06/01/14 135 174
Florida Board of Education (GO) (ETM)
6.900% ............. 05/01/03 2,000 2,102
Tampa Sports Authority (RB) (MBIA)
6.000% ............. 01/01/06 1,000 1,040
-------
3,316
-------
GEORGIA -- 8.4%
Fayette County School District (GO)
6.250% ............. 03/01/04 1,200 1,246
Georgia (GO)
6.500% ............. 01/01/12 2,000 2,170
Georgia Municipal Electric Authority,
Prerefunded 2/15/10 @ 100 (RB)
(MBIA) Series X
6.250% ............. 08/01/06 1,000 1,059
Private Colleges & Universities
Authority, Emory University
Project (RB)
5.375% ............. 11/01/05 1,000 1,014
-------
5,489
-------
GUAM -- 2.4%
Guam Government Limited Obligation
Highway (RB) (FSA)
5.900% ............. 05/01/02 1,505 1,531
-------
PAR VALUE
MATURITY (000) (000)
--------- -------- -------
MUNICIPAL BONDS -- CONTINUED
IDAHO -- 2.6%
Canyon County School District
No. 131 Nampa (GO) (MBIA)
8.125% ............. 07/30/03 $1,560 $ 1,704
-------
ILLINOIS -- 1.9%
Illinois Educational Facility Authority,
Robert Morris College (RB) (MBIA)
4.700% ............. 06/01/04 200 195
Illinois Toll Road Authority (RB) (FSA)
5.500% ............. 01/01/13 1,000 1,001
-------
1,196
-------
INDIANA -- 5.6%
Fort Wayne, Redevelopment
District (RB) (FSA)
4.550% ............. 02/01/08 500 466
Fort Wayne, South Side School
Building Corporation (RB) (FSA) (A)
4.700% ............. 07/15/10 750 691
Fort Wayne, South Side School Building
Corporation, First Mortgage
(RB) (FSA) (A)
4.750% ............. 07/15/11 500 459
Hamilton, School Building
Corporation, First Mortgage (RB)
4.500% ............. 07/05/03 365 354
4.550% ............. 07/05/04 300 288
Indiana Office Building (RB) (A)
4.150% ............. 07/01/04 400 378
Steuben County, School Building
Corporation, First Mortgage (RB)
4.250% ............. 03/01/02 245 239
Vinton-Tecumseh, School Building
Corporation (RB) (A)
4.350% ............. 01/05/04 495 472
Vinton-Tecumseh, School Building
Corporation, First Mortgage (RB) (A)
4.450% ............. 01/05/05 300 284
-------
3,631
-------
KANSAS -- 1.7%
Kansas Department of Transportation,
Highway Revenue (RB)
7.250% ............. 03/01/04 1,000 1,074
-------
KENTUCKY -- 5.0%
Kentucky Turnpike Authority
(RB) (AMBAC)
6.500% ............. 07/01/07 3,000 3,214
-------
See Accompanying Notes
57
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE NATIONAL TAX EXEMPT BOND FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- -------- -------
MUNICIPAL BONDS -- CONTINUED
MARYLAND -- 1.6%
Washington Suburban Sanitation
District, Prerefunded 11/01/01
@ 102 (RB)
6.500% ............. 11/01/01 $1,000 $ 1,040
-------
MINNESOTA -- 1.7%
North St. Paul, Minnesota Maplewood
Independent School District #622,
Prerefunded 02/01/05 @ 100
(GO) (MBIA)
6.875% ............. 02/01/05 1,000 1,071
-------
MISSOURI -- 4.9%
Missouri (GO)
6.000% ............. 01/01/07 1,545 1,616
Missouri Environmental Improvement
& Energy Resources Authority
Water Pollution (RB)
7.000% ............. 10/01/10 495 508
6.000% ............. 04/01/02 1,000 1,020
-------
3,144
-------
NEBRASKA -- 1.3%
American Public Energy Agency,
Gas Refunding (RB) (AMBAC)
4.200% ............. 09/01/10 1,000 857
-------
NEW MEXICO -- 3.2%
Albuquerque Water & Sewer (RB)
6.000% ............. 07/01/05 1,000 1,037
6.000% ............. 07/01/07 1,000 1,044
-------
2,081
-------
NEW YORK -- 8.7%
Buffalo Sewer Authority (RB) (FGIC)
6.000% ............. 07/01/13 1,300 1,358
New York City (GO) (AMBAC)
8.000% ............. 04/01/03 2,000 2,149
Orange County (GO)
5.000% ............. 07/15/11 2,225 2,114
-------
5,621
-------
OHIO -- 2.3%
Cleveland City School District (GO) (ETM)
8.000% ............. 12/01/01 550 574
Cleveland, Non Tax Revenue, Cleveland
Stadium, Series A (RB) (AMBAC)
5.750% ............. 12/01/12 820 398
Ohio Turnpike Commission Series A (RB)
5.500% ............. 02/15/17 500 491
-------
1,463
-------
PAR VALUE
MATURITY (000) (000)
--------- -------- -------
MUNICIPAL BONDS -- CONTINUED
OREGON -- 6.8%
Deschutes & Jefferson Counties
School District #2j Redmond
(GO) (MBIA)
6.000% ............. 06/01/03 $1,000 $ 1,029
Washington County School
District No. 48j Beaverton (GO)
7.800% ............. 06/01/04 1,220 1,336
Washington County Unified Sewer
Agency (RB) (FGIC)
5.750% ............. 10/01/08 2,000 2,055
-------
4,420
-------
PUERTO RICO -- 6.7%
Puerto Rico, Electric Power
Authority (RB) (MBIA)
6.500% ............. 07/01/06 3,000 3,233
University of Puerto Rico Series N
(RB) (MBIA)
6.250% ............. 06/01/07 1,000 1,071
-------
4,304
-------
TENNESSEE -- 6.3%
Shelby County (GO)
5.200% ............. 12/01/09 2,000 1,980
Tennessee (GO)
6.000% ............. 05/01/05 2,000 2,080
-------
4,060
-------
TEXAS -- 5.9%
Dallas County (GO) (MBIA)
5.000% ............. 02/15/09 600 583
Dallas, Prerefunded 02/15/03
@100 (GO)
6.125% ............. 02/15/07 1,000 1,028
Harris County Toll Roads
Revenue (RB)
6.500% ............. 08/15/15 1,540 1,592
Robinson Independent School
District (GO) (A)
5.750% ............. 08/15/12 575 582
-------
3,785
-------
UTAH -- 0.5%
Weber County Municipal Building
Authority (RB) (MBIA)
4.900% ............. 12/15/05 300 294
-------
VERMONT -- 2.2%
Burlington Electric Revenue
(RB) (MBIA)
6.000% ............. 07/01/07 1,355 1,413
-------
See Accompanying Notes
58
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE NATIONAL TAX EXEMPT BOND FUND
================================================================================
MAY 31, 2000
PAR (000)/NUMBER VALUE
MATURITY OF SHARES (000)
--------- ---------------- -------
MUNICIPAL BONDS -- CONTINUED
WISCONSIN -- 3.6%
Cottage Grove (GO) (FSA)
4.700% ............. 08/01/07 $ 260 $ 248
Milwaukee (GO)
6.000% ............. 02/01/07 2,000 2,083
-------
2,331
-------
TOTAL MUNICIPAL BONDS
(Cost $63,349) .............................. 62,895
-------
CASH EQUIVALENT -- 1.2%
Municipal Cash Mutual Fund Open
Provident Investment
Management .................... 806,000 806
-------
TOTAL CASH EQUIVALENT
(Cost $806) ................................. 806
-------
TOTAL INVESTMENTS -- 98.5%
(Cost $64,155) .............................. $63,701
=======
OTHER ASSETS AND LIABILITIES,
NET -- 1.5% ................................. 943
-------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no par value)
based on 6,155,258 outstanding shares of
beneficial interest ......................... $62,182
Portfolio Shares of Investor A
(unlimited authorization -- no par value)
based on 341,953 outstanding shares of
beneficial interest ......................... 3,758
Portfolio Shares of Investor B
(unlimited authorization -- no par value)
based on 40,587 outstanding shares of
beneficial interest ......................... 428
Distributions in excess of net
investment income ........................... (2)
Accumulated net realized loss
on investments .............................. (1,268)
Net unrealized depreciation on investments ... (454)
-------
TOTAL NET ASSETS -- 100.0% ..................... $64,644
=======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- INSTITUTIONAL ...................... $9.89
=======
NET ASSET VALUE AND
REDEMPTION PRICE PER
SHARE -- INVESTOR A ......................... $9.89
=======
MAXIMUM OFFERING PRICE PER
SHARE -- INVESTOR A
($9.89 / 95.25%) ............................ $10.38
=======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- INVESTOR B ............... $9.86
=======
------------------------------------------------
(A) SECURITY IS BACKED BY A LETTER OF CREDIT BACKED BY A MAJOR FINANCIAL
INSTITUTION.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
ETM--ESCROW TO MATURITY
FGIC--FEDERAL GUARANTY INSURANCE COMPANY
FSA--FEDERAL SECURITY ASSURANCE
GO--GENERAL OBLIGATION
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
RB--REVENUE BOND
See Accompanying Notes
59
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE PRIME OBLIGATIONS FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- ------- -------
COMMERCIAL PAPER+ -- 74.4%
AUTOMOTIVE -- 1.7%
Daimler Chrysler
6.120% ............. 06/28/00 $ 5,000 $ 4,977
GMAC
5.900% ............. 07/25/00 5,000 4,956
--------
9,933
--------
BANKS -- 17.3%
Abbey National
6.080% ............. 06/27/00 5,000 4,978
7.000% ............. 12/22/00 5,000 4,820
Anz, Delaware
6.100% ............. 06/26/00 5,000 4,979
Den Danske
5.850% ............. 06/16/00 5,000 4,988
6.250% ............. 06/21/00 5,000 4,984
6.710% ............. 11/20/00 4,500 4,356
Deutsche Bank Financial
5.870% ............. 06/28/00 5,000 4,978
5.900% ............. 07/26/00 10,000 9,908
6.120% ............. 07/06/00 5,000 4,970
Royal Bank of Canada
5.960% ............. 10/23/00 5,000 4,881
6.100% ............. 07/05/00 5,000 4,971
Svenska Handlesbanken
5.900% ............. 06/20/00 5,000 4,984
5.940% ............. 07/18/00 5,000 4,961
6.220% ............. 09/27/00 5,000 4,898
6.790% ............. 09/20/00 5,000 4,905
Toronto Dominion
5.900% ............. 07/25/00 5,000 4,956
6.000% ............. 10/20/00 5,000 4,883
6.675% ............. 11/15/00 5,000 4,845
UBS Financial
6.100% ............. 07/05/00 5,000 4,971
--------
98,216
--------
CHEMICALS & ALLIED PRODUCTS -- 5.2%
Akzo Nobel
6.050% ............. 08/01/00 5,000 4,949
6.090% ............. 06/19/00 5,000 4,985
6.120% ............. 08/07/00 5,000 4,943
6.150% ............. 07/07/00 5,000 4,969
Clorox
6.100% ............. 06/28/00 5,000 4,977
Henkel
6.650% ............. 08/17/00 5,000 4,936
--------
29,759
--------
COMMUNICATIONS EQUIPMENT -- 1.7%
Bell Atlantic
6.420% ............. 07/10/00 5,000 4,965
6.550% ............. 07/20/00 5,000 4,955
--------
9,920
--------
PAR VALUE
MATURITY (000) (000)
--------- ------- -------
COMMERCIAL PAPER+ -- CONTINUED
DIVERSIFIED -- 2.6%
Bass Financial
6.090% ............. 07/06/00 $ 5,000 $ 4,970
General Electric Capital
5.990% ............. 06/14/00 5,000 4,989
6.240% ............. 09/27/00 5,000 4,898
--------
14,857
--------
ELECTRICAL SERVICES -- 3.5%
National Rural Utilities Cooperative
6.100% ............. 09/12/00 5,000 4,913
6.120% ............. 07/19/00 5,000 4,959
6.200% ............. 10/12/00 5,000 4,886
6.450% ............. 07/07/00 5,000 4,969
--------
19,727
--------
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT -- 1.8%
ABB Treasury Center USA
6.770% ............. 06/01/00 10,000 10,000
--------
FABRICATED METAL PRODUCTS -- 1.1%
Stanley Works
6.010% ............. 06/19/00 6,450 6,430
--------
FINANCIAL CONDUIT -- 10.6%
Centric Funding
6.650% ............. 08/07/00 5,250 5,185
Delaware Funding
6.090% ............. 06/23/00 5,000 4,981
6.110% ............. 07/06/00 5,000 4,970
6.220% ............. 07/26/00 5,000 4,953
Fountain Square
5.850% ............. 09/13/00 5,000 4,911
6.550% ............. 07/31/00 5,000 4,945
Preferred Receivables
6.160% ............. 07/20/00 5,000 4,958
6.280% ............. 06/12/00 5,000 4,990
6.520% ............. 07/19/00 5,480 5,436
Southern
6.530% ............. 06/01/00 15,000 15,000
--------
60,329
--------
FINANCIAL SERVICES -- 12.2%
Corporate Asset Funding
6.600% ............. 08/07/00 5,000 4,939
Cregem Na
6.650% ............. 12/13/00 10,000 9,650
Cxc
6.150% ............. 06/07/00 5,000 4,995
6.200% ............. 07/12/00 5,000 4,965
6.640% ............. 08/08/00 5,000 4,937
Dresdner US Financial
5.900% ............. 07/10/00 5,000 4,968
6.440% ............. 08/01/00 5,000 4,945
See Accompanying Notes
60
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE PRIME OBLIGATIONS FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- ------- --------
COMMERCIAL PAPER+ -- CONTINUED
Galaxy Funding
6.150% ............. 07/05/00 $ 5,000 $ 4,971
6.220% ............. 07/26/00 5,000 4,953
6.170% ............. 07/12/00 5,000 4,965
Merrill Lynch
6.110% ............. 07/12/00 5,000 4,965
6.160% ............. 08/09/00 5,000 4,941
6.170% ............. 07/19/00 5,000 4,959
--------
69,153
--------
FOOD & KINDRED PRODUCTS -- 3.6%
Archer Daniels Midland
6.110% ............. 07/05/00 5,600 5,568
6.120% ............. 07/06/00 5,000 4,970
Diageo
5.880% ............. 07/24/00 5,000 4,957
6.000% ............. 10/18/00 5,000 4,884
--------
20,379
--------
GLASS PRODUCTS -- 0.9%
Guardian Industries
6.000% ............. 07/12/00 5,000 4,966
--------
HOUSEHOLD PRODUCTS -- 0.9%
American Home Products
6.550% ............. 07/12/00 5,000 4,963
--------
INSURANCE -- 6.1%
ING Insurance
6.090% ............. 06/19/00 5,000 4,985
6.130% ............. 07/05/00 5,000 4,971
6.280% ............. 07/06/00 5,000 4,970
6.620% ............. 08/16/00 5,000 4,930
Prudential Funding
5.860% ............. 06/28/00 5,000 4,978
5.900% ............. 07/12/00 5,000 4,966
5.910% ............. 07/26/00 5,000 4,955
--------
34,755
--------
MACHINERY & EQUIPMENT -- 0.8%
Caterpillar
6.250% ............. 09/29/00 4,946 4,843
--------
OIL & GAS -- 0.9%
Centric
6.690% ............. 08/29/00 5,000 4,924
--------
PETROLEUM & FUEL PRODUCTS -- 1.8%
Baker Hughes
6.810% ............. 06/01/00 10,000 10,000
--------
PAR VALUE
MATURITY (000) (000)
--------- ------- --------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES -- 1.7%
Eastman Kodak
6.540% ............. 08/08/00 $ 5,000 $ 4,938
6.620% ............. 08/17/00 5,000 4,929
--------
9,867
--------
TOTAL COMMERCIAL PAPER
(Cost $423,021) ............................. 423,021
--------
YANKEE CERTIFICATES OF DEPOSIT -- 4.4%
Monogram Bank
6.410% ............. 09/20/00 5,000 5,000
Societe Generale, NY
6.530% ............. 01/16/01 5,000 4,999
6.550% ............. 01/31/01 5,000 4,999
UBS Stamford
5.600% ............. 06/14/00 5,000 5,000
6.275% ............. 12/18/00 5,000 4,999
--------
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(Cost $24,997) .............................. 24,997
--------
CERTIFICATES OF DEPOSIT -- 1.8%
Bank America
6.710% ............. 08/15/00 5,000 5,000
National Westminster
7.230% ............. 05/09/01 5,000 4,999
--------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $9,999) ............................... 9,999
--------
FLOATING RATE NOTES (A) -- 5.3%
American Home Products
6.130% ............. 07/10/00 5,000 5,000
AT&T
6.240% ............. 07/13/00 5,000 5,000
Comerica
6.153% ............. 09/01/00 5,000 4,999
Daimler Chrysler N.A.
6.304% ............. 07/06/00 5,000 4,999
Travelers Funding
6.624% ............. 08/17/00 10,000 10,000
--------
TOTAL FLOATING RATE NOTES
(Cost $29,998) .............................. 29,998
--------
See Accompanying Notes
61
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE PRIME OBLIGATIONS FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- ------- --------
U.S GOVERNMENT AGENCY
OBLIGATIONS -- 3.5%
Student Loan Marketing
Association, MTN (A)
6.593% ............. 08/10/00 $10,000 $ 9,999
6.593% ............. 11/15/00 10,000 9,998
--------
TOTAL U.S GOVERNMENT AGENCY
OBLIGATIONS
(Cost $19,997) .............................. 19,997
--------
REPURCHASE AGREEMENT -- 10.9%
JP Morgan 6.500% (dated 05/31/00,
matures 06/01/00, repurchase price
$62,068,205; collateralized by
FHLB obligations: market value
$63,297,955) .................. 62,057 62,057
--------
TOTAL REPURCHASE AGREEMENT
(Cost $62,057) .............................. 62,057
--------
TOTAL INVESTMENTS -- 100.3%
(Cost $570,069)* ............................ $570,069
========
OTHER ASSETS AND LIABILITIES,
NET -- (0.3%) (1,833)
--------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no par value)
based on 554,205,614 outstanding shares of
beneficial interest ......................... $554,206
Portfolio Shares of Investor A
(unlimited authorization -- no par value)
based on 13,570,777 outstanding shares of
beneficial interest ......................... 13,756
Portfolio Shares of Investor B
(unlimited authorization -- no par value)
based on 261,155 outstanding shares of
beneficial interest ......................... 262
Undistributed net investment income .......... 6
Accumulated net realized gain
on investments .............................. 6
--------
TOTAL NET ASSETS -- 100.0% ..................... $568,236
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- INSTITUTIONAL .................. $1.00
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- INVESTOR A ..................... $1.00
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- INVESTOR B ..................... $1.00
========
------------------------------------------------
* ALSO COST FOR FEDERAL INCOME TAX PURPOSES
+ EFFECTIVE YIELD
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON MAY 31, 2000. THE MATURITY DATE SHOWN
IS THE LONGER OF THE NEXT RESET DATE OR THE DATE IN WHICH THE PRINCIPAL
AMOUNT CAN BE RECOVERED THROUGH DEMAND.
FHLB--FEDERAL HOME LOAN BANK.
MTN--MEDIUM TERM NOTE
See Accompanying Notes
62
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE TAX-FREE FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- -------- -------
MUNICIPAL BONDS -- 98.7%
ARIZONA -- 5.6%
Manicopa County, Pollution Control
Revenue, Southern California
Edison Project (TECP)
3.850% ............. 06/30/00 $ 1,600 $ 1,600
4.150% ............. 07/26/00 1,000 1,000
Salt River Project, Agriculture
Improvement & Power, District
of Arizona (TECP)
3.750% ............. 06/16/00 1,000 1,000
4.011% ............. 07/20/00 1,000 1,000
-------
4,600
-------
COLORADO -- 2.4%
Westminster, Industrial Development
Ball Project (RB) (A)
4.300% ............. 06/01/00 2,000 2,000
-------
CONNECTICUT -- 1.2%
Connecticut State, Health &
Education Facility, Yale University
Project Series U2 (RB) (A)
4.100% ............. 06/07/00 1,000 1,000
-------
FLORIDA -- 3.6%
Gainesville, Utilities System (TECP)
4.000% ............. 07/25/00 3,000 3,000
-------
GEORGIA -- 1.2%
Georgia State, Municipal Electric
Authority (TECP)
3.600% ............. 06/08/00 1,000 1,000
-------
ILLINOIS -- 10.7%
Illinois State, Financial Authority,
Loyola Academy Project,
Series A (RB) (A) (B)
4.250% ............. 06/01/00 2,000 2,000
Illinois State, Health Facilities
Authority (RB) (A) (B) (FSA)
4.150% ............. 06/01/00 2,000 2,000
Illinois State, Health Facilities
Authority, Advocate Healthcare
Network Series B (RB) (A) (B)
4.250% ............. 06/07/00 1,845 1,845
University of Chicago, Illinois
Education Facilities (TECP)
4.750% ............. 01/26/01 3,000 3,000
-------
8,845
-------
INDIANA -- 5.3%
Franklin County, Economic
Development Authority, J&J
Project (RB) (A)
4.500% ............. 06/01/00 180 180
PAR VALUE
MATURITY (000) (000)
--------- -------- -------
MUNICIPAL BONDS -- CONTINUED
INDIANA -- CONTINUED
Indiana State, Health Facilities Finance
Authority, Capital Access Project
PGM 1997 (RB) (A) (B)
4.250% ............. 06/07/00 $ 4,200 $ 4,200
-------
4,380
-------
LOUISIANA -- 3.6%
Louisiana State, Parrish of St. James,
Pollution Control Revenue,
Texaco Project Series 1988A (RB)
4.250% ............. 10/17/00 3,000 3,000
-------
MICHIGAN -- 15.8%
Detroit, Sewer Dispense Series A (RB)
4.100% ............. 07/01/00 2,000 2,000
Jackson County, Economic
Development Authority, Sealed
Power Project (RB) (A)
4.650% ............. 06/01/00 2,000 2,000
Michigan State Building
Series 2000 (TECP)
4.800% ............. 09/12/00 2,000 2,000
Michigan State, Consumers Power
Company Project J (RB)
4.350% ............. 06/15/00 1,800 1,800
Michigan State, Detroit Edison
Project (RB)
4.350% ............. 09/01/00 4,300 4,300
Michigan Technological University,
Board of Control Series A (RB) (A) (B)
4.250% ............. 06/01/00 1,000 1,000
-------
13,100
-------
MINNESOTA -- 2.7%
Rochester, Healthcare Facility, Mayo
Foundation (TECP)
4.350% ............. 07/19/00 2,200 2,200
-------
MISSOURI -- 3.0%
Missouri State, Health & Educational
Facilities Authority, Washington
University Project Series C (RB) (A)
4.250% ............. 06/01/00 1,500 1,500
Missouri State, Health & Educational
Facility Authority Series D (RB)
4.250% ............. 06/01/00 1,000 1,000
-------
2,500
-------
NORTH CAROLINA -- 7.2%
Raleigh Durham, Airport Authority,
American Airlines Project (RB) (A)
4.350% ............. 06/01/00 4,000 4,000
See Accompanying Notes
63
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE TAX-FREE FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- -------- -------
MUNICIPAL BONDS -- CONTINUED
NORTH CAROLINA -- CONTINUED
University of North Carolina, Medical
Care Clinic Project (RB) (A)
4.150% ............. 06/07/00 $ 2,000 $ 2,000
-------
6,000
-------
OHIO -- 8.6%
Columbus (GO) Series 1 (A)
4.150% ............. 06/01/00 3,095 3,095
Coshocton County Hospital (RB) (A)
4.300% ............. 06/01/00 1,300 1,300
Scioto County, Hospital Facilities,
VHA Central Capital Asset Finance
Program Series B (RB) (AMBAC)
4.200% ............. 06/01/00 2,725 2,725
-------
7,120
-------
PENNSYLVANIA -- 7.6%
Delaware County, Industrial
Development Authority, UPS Project
Series 1985 (RB) (A) (B)
4.300% ............. 06/01/00 1,200 1,200
Lehigh County General Purpose
Series A (RB)
4.350% ............. 06/01/00 1,700 1,700
Pennsylvania State, Higher Education
Authority, Carnegie Mellon
University Project Series 1995-C (RB) (B)
4.350% ............. 06/01/00 1,500 1,500
Pennsylvania State, Higher
Educational Facilities Authority,
University of Pennsylvania, Health
Services Project Series C (RB) (A) (B)
4.300% ............. 06/01/00 1,000 1,000
Quakertown, General Authority
Series A (RB) (A)
4.150% ............. 06/01/00 895 895
-------
6,295
-------
TENNESSEE -- 5.2%
Metropolitan Government of
Nashville & Davidson County,
Health & Education Facilities
Board, Vanderbilt University
Series A (RB) (A) (B)
4.300% ............. 06/01/00 3,000 3,000
Tennessee State, School Bond
Authority Series A (TECP)
3.950% ............. 06/13/00 1,300 1,300
-------
4,300
-------
PAR (000)/NUMBER VALUE
MATURITY OF SHARES (000)
--------- ---------------- -------
MUNICIPAL BONDS -- CONTINUED
TEXAS -- 6.0%
Harris County, Health Facilities
Development, Methodist Hospital
Project Series A (RB) (A)
4.350% ............. 06/01/00 $ 2,000 $ 2,000
Houston Series 1999A (TECP)
4.250% ............. 07/18/00 3,000 3,000
-------
5,000
-------
UTAH -- 3.6%
Intermountain Power Agency
Series B (TECP)
3.600% ............. 06/16/00 1,500 1,500
4.011% ............. 07/28/00 1,000 1,000
Intermountain Power Agency
Series 1985f (TECP)
4.750% ............. 07/13/00 500 500
-------
3,000
-------
VIRGINIA -- 2.8%
Hampton, Hospital Facilities Authority,
Sentara Health System Series B (RB)
3.900% ............. 06/14/00 2,300 2,300
-------
WISCONSIN -- 2.6%
Wisconsin Series B (TECP)
4.600% ............. 07/12/00 1,165 1,165
Wisconsin State Series A (TECP)
4.000% ............. 06/12/00 1,017 1,017
-------
2,182
-------
TOTAL MUNICIPAL BONDS
(Cost $81,822) .............................. 81,822
-------
CASH EQUIVALENTS -- 1.2%
Goldman Sachs
Financial Square
Tax-Exempt Money Market
Fund .......................... 926,000 926
Municipal Cash Mutual Fund,
Open Provident Investment
Management .................... 100,000 100
-------
TOTAL CASH EQUIVALENTS
(Cost $1,026) ............................... 1,026
-------
TOTAL INVESTMENTS -- 99.9%
(Cost $82,848)* ............................. $82,848
=======
OTHER ASSETS AND LIABILITIES,
NET -- 0.1% ................................. 76
-------
See Accompanying Notes
64
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE TAX-FREE FUND
================================================================================
MAY 31, 2000
VALUE
(000)
-------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no par value)
based on 82,594,737 outstanding shares of
beneficial interest ......................... $82,595
Portfolio Shares of Investor A
(unlimited authorization -- no par value)
based on 323,930 outstanding shares of
beneficial interest ......................... 328
Undistributed net investment income .......... 1
-------
TOTAL NET ASSETS -- 100.0% ..................... $82,924
=======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- INSTITUTIONAL ...................... $1.00
=======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- INVESTOR A ......................... $1.00
=======
------------------------------------------------
* ALSO COST FOR FEDERAL INCOME TAX PURPOSES.
(A) SECURITIES ARE BACKED BY A LETTER OF CREDIT BACKED BY A MAJOR FINANCIAL
INSTITUTION.
(B) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON MAY 31, 2000. THE MATURITY DATE SHOWN IS
THE LONGER OF THE NEXT RESET DATE OR THE DATE IN WHICH THE PRINCIPAL AMOUNT
CAN BE RECOVERED THROUGH DEMAND.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FSA--FEDERAL SECURITY ASSURANCE
GO--GENERAL OBLIGATION
RB--REVENUE BOND
TECP--TAX EXEMPT COMMERCIAL PAPER
See Accompanying Notes
65
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE U.S. GOVERNMENT OBLIGATIONS FUND
================================================================================
MAY 31, 2000
PAR VALUE
MATURITY (000) (000)
--------- -------- --------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 75.7%
FEDERAL FARM CREDIT BANK -- 4.9%
Federal Farm Credit Bank+
5.800% ............. 06/14/00 $ 1,000 $ 998
5.870% ............. 08/02/00 500 495
5.980% ............. 06/15/00 1,000 998
6.000% ............. 06/16/00 1,000 997
Federal Farm Credit Bank (A)
6.332% ............. 02/01/01 1,500 1,501
--------
4,989
--------
FEDERAL HOME LOAN BANK -- 19.5%
Federal Home Loan Bank+
5.890% ............. 08/02/00 1,000 990
5.935% ............. 06/09/00 1,000 999
5.980% ............. 06/21/00 3,000 2,990
5.990% ............. 06/14/00 2,000 1,996
6.100% ............. 06/28/00 1,500 1,493
6.110% ............. 09/27/00 1,000 980
6.130% ............. 06/02/00 500 500
6.150% ............. 07/12/00 2,000 1,986
6.180% ............. 07/31/00 1,000 990
6.190% ............. 07/26/00 2,000 1,981
6.200% ............. 07/28/00 2,000 1,980
6.210% ............. 03/21/01 1,000 949
Federal Home Loan Bank (A)
6.303% ............. 06/09/00 2,000 2,000
--------
19,834
--------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 26.0%
Federal Home Loan Mortgage Corporation+
5.030% ............. 08/09/00 430 425
5.810% ............. 07/20/00 3,500 3,472
5.950% ............. 06/01/00 1,000 1,000
5.950% ............. 06/15/00 2,000 1,995
5.960% ............. 06/06/00 2,500 2,498
5.980% ............. 06/22/00 2,000 1,993
6.015% ............. 06/29/00 3,000 2,986
6.025% ............. 06/20/00 1,000 997
6.030% ............. 07/06/00 1,000 994
6.030% ............. 07/11/00 1,000 993
6.070% ............. 09/14/00 1,500 1,474
6.090% ............. 07/13/00 2,000 1,986
6.090% ............. 07/27/00 1,000 991
6.170% ............. 10/12/00 500 489
6.200% ............. 06/08/00 1,238 1,237
6.310% ............. 08/03/00 1,500 1,483
6.340% ............. 06/27/00 1,500 1,493
--------
26,506
--------
PAR VALUE
MATURITY (000) (000)
--------- -------- --------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 24.3%
Federal National Mortgage Association+
5.800% ............. 07/20/00 $ 2,000 $1,984
5.810% ............. 06/06/00 1,000 999
5.820% ............. 07/13/00 1,000 993
5.820% ............. 07/27/00 2,000 1,982
5.850% ............. 06/01/00 4,390 4,390
5.875% ............. 08/10/00 500 494
5.900% ............. 08/03/00 500 495
5.920% ............. 08/31/00 1,000 985
5.940% ............. 08/17/00 2,000 1,975
5.940% ............. 08/24/00 1,000 986
5.950% ............. 06/08/00 2,000 1,998
5.965% ............. 06/15/00 1,500 1,496
5.980% ............. 06/22/00 1,000 996
6.120% ............. 09/21/00 1,500 1,472
6.150% ............. 07/06/00 2,053 2,041
6.150% ............. 10/05/00 1,000 978
6.170% ............. 10/12/00 500 489
--------
24,753
--------
STUDENT LOAN MARKETING ASSOCIATION -- 1.0%
Student Loan Marketing Association (A)
6.333% ............. 03/09/01 1,000 1,000
--------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $77,082) .............................. 77,082
--------
REPURCHASE AGREEMENT -- 24.8%
JP Morgan 6.500% (dated 05/31/00,
matures 06/01/00, repurchase price
$25,330,573; collateralized by
FHLMC obligation: market value
$25,832,606) .................. 25,326 25,326
--------
TOTAL REPURCHASE AGREEMENT
(Cost $25,326) .............................. 25,326
--------
TOTAL INVESTMENTS -- 100.5%
(Cost $102,408)* ............................ $102,408
========
OTHER ASSETS AND LIABILITIES,
NET -- (0.5%) ............................... (490)
--------
See Accompanying Notes
66
<PAGE>
STATEMENT OF NET ASSETS
PARKSTONE U.S. GOVERNMENT OBLIGATIONS FUND
================================================================================
MAY 31, 2000
VALUE
(000)
--------
NET ASSETS:
Portfolio Shares of Institutional
(unlimited authorization -- no par value)
based on 100,985,643 outstanding shares of
beneficial interest ......................... $101,018
Portfolio Shares of Investor A
(unlimited authorization -- no par value)
based on 899,126 outstanding shares of
beneficial interest ......................... 902
Accumulated net realized loss
on investments .............................. (2)
--------
TOTAL NET ASSETS -- 100.0% ..................... $101,918
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- INSTITUTIONAL ...................... $1.00
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- INVESTOR A ......................... $1.00
========
------------------------------------------------
* ALSO COST FOR FEDERAL INCOME TAX PURPOSES.
+ EFFECTIVE YIELD
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON MAY 31, 2000. THE MATURITY DATE SHOWN IS THE
LONGER OF THE NEXT RESET DATE OR THE DATE IN WHICH THE PRINCIPAL AMOUNT CAN
BE RECOVERED THROUGH DEMAND.
FHLMC--FEDERAL HOME LOAN MORTGAGE CORPORATION
See Accompanying Notes
67
<PAGE>
FINANCIAL STATEMENTS
PARKSTONE GROUP OF FUNDS
================================================================================
STATEMENTS OF OPERATIONS (000)
FOR THE YEAR ENDED MAY 31, 2000
<TABLE>
<CAPTION>
INTERNATIONAL SMALL EQUITY BALANCED
DISCOVERY CAPITALIZATION INCOME ALLOCATION BOND
FUND FUND FUND FUND FUND
------------- -------------- -------- ---------- --------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Interest ......................................... $ 667 $ 1,344 $ 258 $ 4,674 $ 23,948
Dividends ........................................ 3,458 377 6,783 838 --
Securities lending ............................... 51 271 60 47 71
Less: Foreign taxes withheld ..................... (262) -- -- (40) --
-------- -------- -------- -------- --------
Total Investment Income ..................... 3,914 1,992 7,101 5,519 24,019
-------- -------- -------- -------- --------
EXPENSES:
Investment advisory fees ......................... 3,797 3,067 2,121 1,437 2,116
Fees waived by Investment Adviser ................ -- -- -- (156) (55)
Administration fees .............................. 617 562 485 349 650
Administration fees waived ....................... -- -- -- -- (24)
Custodian fees ................................... 257 45 40 164 48
Shareholder servicing fees ....................... 20 51 44 13 8
Professional fees ................................ 34 45 39 27 51
Trustees fees .................................... 37 5 5 4 7
Registration fees ................................ 25 21 16 19 26
Transfer Agent fees .............................. 154 310 241 108 113
Distribution fees ................................ 125 284 281 77 49
Printing fees .................................... 35 30 19 15 35
Miscellaneous fees ............................... 41 8 8 8 14
-------- -------- -------- -------- --------
Total Expenses .............................. 5,142 4,428 3,299 2,065 3,038
-------- -------- -------- -------- --------
NET INVESTMENT INCOME/(LOSS) ..................... (1,228) (2,436) 3,802 3,454 20,981
-------- -------- -------- -------- --------
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS:
Net realized gain/(loss) on futures .............. 1,569 1,603 (63) 68 --
Net realized gain/(loss) on investments .......... 79,013 88,660 39,027 33,239 (18,463)
Net realized loss on foreign currency
transactions .................................. (262) -- -- (121) --
Net change in unrealized appreciation/
depreciation on investments ................... 19,876 29,797 (60,723) (5,817) (1,479)
Net change in unrealized foreign
exchange gain/(loss) .......................... (386) -- -- (4) --
Net change in unrealized appreciation/
depreciation on futures ....................... -- (2,276) -- -- --
-------- -------- -------- -------- --------
Net gain/(loss) on investments ................... 99,810 117,784 (21,759) 27,365 (19,942)
-------- -------- -------- -------- --------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ..................... $ 98,582 $115,348 $(17,957) $ 30,819 $ 1,039
======== ======== ======== ======== ========
</TABLE>
See Accompanying Notes
68
<PAGE>
FINANCIAL STATEMENTS
PARKSTONE GROUP OF FUNDS
================================================================================
STATEMENTS OF OPERATIONS (000)
FOR THE YEAR ENDED MAY 31, 2000
<TABLE>
<CAPTION>
INTERMEDIATE LIMITED NATIONAL TAX PRIME U.S. GOVERNMENT
GOVERNMENT MATURITY EXEMPT OBLIGATIONS TAX-FREE OBLIGATIONS
OBLIGATIONS FUND BOND FUND BOND FUND FUND FUND FUND
---------------- --------- ------------ ----------- -------- ---------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C> <C>
Interest ................................. $ 7,101 $ 8,511 $ 4,155 $34,757 $3,401 $6,019
Securities lending ....................... 27 11 -- -- -- --
------- ------- ------- ------- ------ ------
Total Investment Income ............. 7,128 8,522 4,155 34,757 3,401 6,019
------- ------- ------- ------- ------ ------
EXPENSES:
Investment advisory fees ................. 701 703 531 2,241 345 399
Fees waived by Investment Advisor ........ (18) (88) (63) -- -- --
Administration fees ...................... 235 254 183 1,088 176 201
Administration fees waived ............... (11) (11) (29) -- -- --
Custodian fees ........................... 26 78 21 73 23 21
Shareholder servicing fee ................ 2 2 1 1 -- --
Professional fees ........................ 20 23 16 46 16 17
Trustees fees ............................ 3 2 2 10 1 2
Registration fees ........................ 24 23 22 29 14 15
Transfer Agent fees ...................... 75 74 55 142 41 56
Distribution fees ........................ 28 43 15 37 2 4
Distribution fees waived ................. -- -- -- (19) (1) (2)
Printing fees ............................ 10 5 11 57 8 13
Miscellaneous fees ....................... 3 5 4 15 3 2
------- ------- ------- ------- ------ ------
Total Expenses ...................... 1,098 1,113 769 3,720 628 728
------- ------- ------- ------- ------ ------
NET INVESTMENT INCOME .................... 6,030 7,409 3,386 31,037 2,773 5,291
------- ------- ------- ------- ------ ------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments .. (2,759) (1,390) (1,268) 6 -- (1)
Net change in unrealized depreciation
on investments ........................ (1,026) (1,986) (2,894) -- -- --
------- ------- ------- ------- ------ ------
Net gain/(loss) on investments ........... (3,785) (3,376) (4,162) 6 -- (1)
------- ------- ------- ------- ------ ------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS ............................ $ 2,245 $ 4,033 $ (776) $31,043 $2,773 $5,290
======= ======= ======= ======= ====== ======
</TABLE>
See Accompanying Notes
69
<PAGE>
FINANCIAL STATEMENTS
PARKSTONE GROUP OF FUNDS
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND SMALL CAPITALIZATION FUND
-------------------------------- -------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment loss ....................................... $ (1,228) $ (957) $ (2,436) $ (4,377)
Net realized gain/(loss) on investments, futures
and foreign currency transactions ...................... 80,320 55,634 90,263 (26)
Net change in unrealized appreciation/
depreciation on investments and translation
of assets and liabilities in foreign currencies ........ 19,490 (80,335) 27,521 (109,493)
-------- -------- -------- ---------
Change in net assets
resulting from operations .............................. 98,582 (25,658) 115,348 (113,896)
-------- -------- -------- ---------
DISTRIBUTIONS TO INVESTOR A SHAREHOLDERS:
From net realized gain on investments and
foreign currency transactions ........................ (4,858) (1,835) (3,142) (10,802)
-------- -------- -------- ---------
DISTRIBUTIONS TO INVESTOR B SHAREHOLDERS:
From net realized gain on investments and
foreign currency transactions ........................ (1,794) (584) (1,293) (3,334)
-------- -------- -------- ---------
DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERs:
From net realized gain on investments and
foreign currency transactions ........................ (62,875) (18,395) (14,006) (36,347)
-------- -------- -------- ---------
Change in net assets resulting from distributions ......... (69,527) (20,814) (18,441) (50,483)
-------- -------- -------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued ............................ 128,409 47,693 132,547 494,145
Dividends reinvestment ................................. 41,377 12,710 13,973 40,154
Cost of shares redeemed ................................ (187,912) (198,705) (289,555) (814,361)
-------- -------- -------- ---------
Change in net assets from capital transactions ............ (18,126) (138,302) (143,035) (280,062)
-------- -------- -------- ---------
Change in net assets ...................................... 10,929 (184,774) (46,128) (444,441)
-------- -------- -------- ---------
NETASSETS:
Beginning of period .................................... 300,282 485,056 302,688 747,129
-------- -------- -------- ---------
End of period .......................................... $311,211 $300,282 $256,560 $ 302,688
======== ======== ======== =========
</TABLE>
See Accompanying Notes
70
<PAGE>
FINANCIAL STATEMENTS
PARKSTONE GROUP OF FUNDS
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
EQUITY INCOME FUND BALANCED ALLOCATION FUND
-------------------------------- -------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------
FROM INVESTMENT ACTIVITIES: OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ..................................... $ 3,802 $ 4,840 $ 3,454 $ 5,700
Net realized gain on investments, futures and
foreign currency transactions .......................... 38,964 94,130 33,186 15,226
Net change in unrealized appreciation/depreciation
on investments and translation of
assets and liabilities in foreign currencies ........... (60,723) (61,914) (5,821) (12,513)
-------- -------- -------- --------
Change in net assets
resulting from operations .............................. (17,957) 37,056 30,819 8,413
-------- -------- -------- --------
DISTRIBUTIONS TO INVESTOR A SHAREHOLDERS:
From net investment income ............................. (908) (1,152) (290) (360)
From net realized gain on investments and
foreign currency transactions ........................ (21,561) (10,723) (1,630) (472)
DISTRIBUTIONS TO INVESTOR B SHAREHOLDERS:
From net investment income ............................. (148) (178) (65) (89)
From net realized gain on investments and
foreign currency transactions ........................ (6,662) (3,010) (596) (192)
DISTRIBUTIONS TO INVESTOR C SHAREHOLDERS: (A)
From net investment income ............................. -- (2) -- (3)
DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS:
From net investment income ............................. (2,982) (3,699) (3,407) (5,206)
From net realized gain on investments and
foreign currency transactions ........................ (52,449) (29,940) (16,588) (6,148)
-------- -------- -------- --------
Change in net assets resulting from distributions ......... (84,710) (48,704) (22,576) (12,470)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued ............................ 120,041 34,686 17,632 32,544
Dividends reinvestment ................................. 42,607 21,572 20,762 11,335
Cost of shares redeemed ................................ (149,638) (132,781) (98,340) (131,988)
-------- -------- -------- --------
Change in net assets from capital transactions ............ 13,010 (76,523) (59,946) (88,109)
-------- -------- -------- --------
Change in net assets ...................................... (89,657) (88,171) (51,703) (92,166)
-------- -------- -------- --------
NET ASSETS:
Beginning of period .................................... 326,588 414,759 198,686 290,852
-------- -------- -------- --------
End of period .......................................... $236,931 $326,588 $146,983 $198,686
======== ======== ======== ========
</TABLE>
(a) Investor C class of shares closed on August 28, 1998.
See Accompanying Notes
71
<PAGE>
FINANCIAL STATEMENTS
PARKSTONE GROUP OF FUNDS
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT
BOND FUND OBLIGATIONS FUND
-------------------------------- -------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------
FROM INVESTMENT ACTIVITIES: OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ..................................... $ 20,981 $ 26,093 $ 6,030 $ 8,616
Net realized gain/(loss) on investments ................... (18,463) 2,425 (2,759) 653
Net change in unrealized appreciation/depreciation
on investments ......................................... (1,479) (13,814) (1,026) (1,892)
-------- -------- -------- --------
Change in net assets
resulting from operations .............................. 1,039 14,704 2,245 7,377
-------- -------- -------- --------
DISTRIBUTIONS TO INVESTOR A SHAREHOLDERS:
From net investment income ............................. (591) (778) (442) (590)
From net realized gain on investments .................. -- (36) -- --
DISTRIBUTIONS TO INVESTOR B SHAREHOLDERS:
From net investment income ............................. (169) (268) (39) (65)
From net realized gain on investments .................. -- (15) -- --
DISTRIBUTIONS TO INVESTOR C SHAREHOLDERS: (A)
From net investment income ............................. -- (7) -- (3)
DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS:
From net investment income ............................. (20,268) (25,246) (5,557) (7,958)
From net realized gain on investments .................. -- (1,118) -- --
-------- -------- -------- --------
Change in net assets resulting from distributions ......... (21,028) (27,468) (6,038) (8,616)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued ............................ 36,387 49,058 5,737 14,190
Dividends reinvestment ................................. 14,415 17,146 1,741 2,456
Cost of shares redeemed ................................ (106,589) (176,431) (67,386) (58,259)
-------- -------- -------- --------
Change in net assets from capital transactions ............ (55,787) (110,227) (59,908) (41,613)
-------- -------- -------- --------
Change in net assets ...................................... (75,776) (122,991) (63,701) (42,852)
-------- -------- -------- --------
NET ASSETS:
Beginning of period .................................... 382,694 505,685 145,177 188,029
-------- -------- -------- --------
End of period .......................................... $306,918 $382,694 $ 81,476 $145,177
======== ======== ======== ========
</TABLE>
(a) Investor C class of shares closed on August 28, 1998.
See Accompanying Notes
72
<PAGE>
FINANCIAL STATEMENTS
PARKSTONE GROUP OF FUNDS
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
NATIONAL TAX EXEMPT
LIMITED MATURITY BOND FUND BOND FUND
-------------------------------- -------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------
FROM INVESTMENT ACTIVITIES: OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ...................................... $ 7,409 $ 10,142 $ 3,386 $ 4,593
Net realized gain/(loss) on investments .................... (1,390) 691 (1,268) 428
Net change in unrealized appreciation/depreciation
on investments .......................................... (1,986) (1,757) (2,894) (438)
-------- -------- -------- --------
Change in net assets
resulting from operations ............................... 4,033 9,076 (776) 4,583
-------- -------- -------- --------
DISTRIBUTIONS TO INVESTOR A SHAREHOLDERS:
From net investment income .............................. (821) (1,778) (173) (287)
From net realized gain on investments ................... -- -- (13) (90)
DISTRIBUTIONS TO INVESTOR B SHAREHOLDERS:
From net investment income .............................. (38) (59) (14) (18)
From net realized gain on investments ................... -- -- (1) (7)
DISTRIBUTIONS TO INVESTOR C SHAREHOLDERS: (A)
From net investment income .............................. -- (22) -- --
DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS:
From net investment income .............................. (6,512) (8,283) (3,199) (4,288)
From net realized gain on investments ................... -- -- (255) (1,234)
-------- -------- -------- --------
Change in net assets resulting from distributions .......... (7,371) (10,142) (3,655) (5,924)
-------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued ............................. 21,473 40,538 9,196 9,852
Dividends reinvestment .................................. 3,059 4,082 436 713
Cost of shares redeemed ................................. (58,426) (91,178) (44,880) (38,965)
-------- -------- -------- --------
Change in net assets from capital transactions ............. (33,894) (46,558) (35,248) (28,400)
-------- -------- -------- --------
Change in net assets ....................................... (37,232) (47,624) (39,679) (29,741)
-------- -------- -------- --------
NET ASSETS:
Beginning of period ..................................... 148,209 195,833 104,323 134,064
-------- -------- -------- --------
End of period ........................................... $110,977 $148,209 $ 64,644 $104,323
======== ======== ======== ========
</TABLE>
(a) Investor C class of shares closed on August 28, 1998.
See Accompanying Notes
73
<PAGE>
FINANCIAL STATEMENTS
PARKSTONE GROUP OF FUNDS
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
U.S. GOVERNMENT
PRIME OBLIGATIONS FUND TAX-FREE FUND OBLIGATIONS FUND
-------------------------- -------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------ ------------ ------------
FROM INVESTMENT ACTIVITIES: OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income ..................... $ 31,037 $ 35,041 $ 2,773 $ 3,346 $ 5,291 $ 11,399
Net realized gain (loss) on investments ... 6 -- -- 3 (1) --
-------- ----------- --------- --------- -------- ---------
Change in net assets
resulting from operations ............. 31,043 35,041 2,773 3,349 5,290 11,399
-------- ----------- --------- --------- -------- ---------
DISTRIBUTIONS TO INVESTOR A SHAREHOLDERS:
From net investment income ............. (627) (3,035) (19) (584) (75) (3,460)
DISTRIBUTIONS TO INVESTOR B SHAREHOLDERS:
From net investment income ............. (22) (26) -- -- -- --
DISTRIBUTIONS TO INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment income ............. (30,382) (31,980) (2,755) (2,762) (5,216) (7,939)
-------- ----------- --------- --------- -------- ---------
Change in net assets resulting
from distributions .................... (31,031) (35,041) (2,774) (3,346) (5,291) (11,399)
-------- ----------- --------- --------- -------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares issued ............ 892,279 1,494,362 162,114 253,902 158,349 535,685
Dividends reinvestment ................. 1,118 3,675 20 462 125 569
Cost of shares redeemed ................ (969,414) (1,763,064) (189,966) (302,778) (180,062) (767,341)
-------- ----------- --------- --------- -------- ---------
Change in net assets from
capital transactions .................. (76,017) (265,027) (27,832) (48,414) (21,588) (231,087)
-------- ----------- --------- --------- -------- ---------
Change in net assets ...................... (76,005) (265,027) (27,833) (48,411) (21,589) (231,087)
-------- ----------- --------- --------- -------- ---------
NET ASSETS:
Beginning of period .................... 644,241 909,268 110,757 159,168 123,507 354,594
-------- ----------- --------- --------- -------- ---------
End of period .......................... $568,236 $ 644,241 $ 82,924 $ 110,757 $101,918 $ 123,507
======== =========== ========= ========= ======== =========
</TABLE>
See Accompanying Notes
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
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 National Tax Exempt
Bond Fund (formerly the Municipal Bond Fund), the Michigan Municipal Bond Fund,
the Balanced Allocation Fund and the Equity Income Fund (collectively, `'the
variable net asset value funds").
Each share class represents an interest in the same portfolio of investments
of the respective fund and is substantially the same in all respects, except
that the classes are subject to different distribution and/or shareholders
service fees and investment minimums. Investor A shares are sold subject to a
front-end sales charge and Investor B shares are sold with a contingent deferred
sales charge, both of which may be reduced or waived under certain
circumstances.
These financial statements and related notes pertain to the International
Discovery Fund, Small Capitalization Fund, Equity Income Fund, Balanced
Allocation Fund, Bond Fund, Intermediate Government Obligations Fund, Limited
Maturity Bond Fund, National Tax Exempt Bond Fund, Prime Obligations Fund,
Tax-Free Fund and the U.S. Government Obligations Fund (collectively, "the
Funds" and individually, a "Fund").
INTERNATIONAL DISCOVERY FUND
To provide capital appreciation by investing in equity securities of foreign
issuers.
SMALL CAPITALIZATION FUND
To provide capital appreciation with a diversified portfolio of publicly
traded smaller cap equity securities.
EQUITY INCOME FUND
To provide capital appreciation with a diversified portfolio of publicly
traded larger cap equity securities which, in the aggregate, provide an
above-average current yield.
BALANCED ALLOCATION FUND
To provide long-term capital appreciation and current income.
BOND FUND
To provide current income with preservation of capital by investing in high-
and medium-grade fixed-income securities.
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
To provide current income as well as preservation of capital by investing
primarily in U.S. government securities.
LIMITED MATURITY BOND FUND
To provide current income as well as preservation of capital by investing in a
portfolio of high- and medium-grade fixed-income securities.
NATIONAL TAX EXEMPT BOND FUND
To provide current income exempt from federal income taxes as is consistent
with conservation of capital.
PRIME OBLIGATIONS FUND
To provide current income with liquidity and stability of principal.
TAX-FREE FUND
To provide 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.
U.S. GOVERNMENT OBLIGATIONS FUND
To provide current income with liquidity and stability of principal.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. These policies are in
conformity with accounting principles generally accepted in the United States
(GAAP). The preparation of financial statements in accordance with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by
the Funds.
SECURITIES VALUATION:
EQUITY AND BOND FUNDS
An equity or bond fund generally values its investment portfolio at market
price. In the event that a sale of a particular fixed income security is not
reported for that
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS
day, fixed income securities are priced at the mean between the most recent
quoted bid and asked prices. Unlisted securities and securities traded on a
national securities market for which market quotations are readily available are
valued at the mean between the most recent bid and asked prices. In the event
that a sale of a particular equity security is not reported for that day, shares
are priced at the last bid quotation. If market prices are unavailable or a Fund
thinks that they are unreliable, fair value prices may be determined in good
faith using methods approved by the Board of Trustees.
MONEY MARKET FUNDS
For the Money Market Funds, we generally value the Fund's investment
portfolio using the amortized cost valuation method, which is described in
detail in our Statement of Additional Information. If this method is determined
to be unreliable during certain market conditions or for other reasons, the
Funds may value its portfolio at market price or fair value prices may be
determined in good faith using methods approved by the Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INCOME: Security transactions are recorded
on trade date. Realized gains and losses on investments sold are recorded on
the identified cost basis. Interest income is accrued on a daily basis.
Dividends are recorded on the ex-dividend date. Expenses common to all of the
Funds in the Group are allocated among the Funds on the basis of average net
assets. Original issue discounts and market premiums are amortized to interest
income over the lives of the respective securities.
REPURCHASE AGREEMENTS: Repurchase Agreements are considered loans under the
1940 Act. In connection therewith, the Group's custodian receives and holds
collateral of not less than 102% of the repurchase price plus accrued interest.
If the value of the collateral falls below this amount, the Group will require
the seller to deposit additional collateral by the next business day. If the
request for additional collateral is not met or the seller defaults on its
repurchase obligation, the Group maintains the right to sell the underlying
securities at market value and any remaining loss may be subject to legal
proceedings.
FOREIGN CURRENCY TRANSLATION: The books and records of the International
Equity Fund are maintained in U.S. dollars as follows: (1) the foreign currency
market values of investment securities and other assets and liabilities stated
in foreign currencies are translated at the exchange rates prevailing at the end
of the period; and (2) purchases, sales and income are translated at the rates
of exchange prevailing on the respective dates of such transactions. The
resulting exchange gains and losses are included in the Statement of Operations.
The Fund does not isolate the portion of gains and losses on investment which is
due to fluctuations in foreign exchange rates from that which is due to
fluctuations in the market prices of investments.
FORWARD CURRENCY CONTRACTS: Certain of the Funds enter into forward foreign
currency contracts as hedges against either specific transactions or portfolio
positions. All commitments are "marked-to-market" daily at the applicable
foreign exchange rate and any resulting unrealized gains or losses are recorded
currently. The Fund realizes gains or losses at the time the forward contracts
are extinguished. At May 31, 2000, forward foreign currency contracts
outstanding were as follows:
CONTRACT
FORWARD CONTRACT VALUE APPRECIATION
CURRENCY AMOUNT U.S. DOLLAR (DEPRECIATION) DELIVERY
CONTRACTS (000) (000) (000) DATE
--------- -------- ----------- -------------- -------------
International
Discovery Fund
Short Contracts
Swiss Franc 1,750 $1,037 $ (5) 6/2/00
Euro 141 132 (1) 6/5/00
British Pound 309 454 (10) 6/2/00
British Pound 105 156 (1) 6/5/00
British Pound 118 176 (1) 6/6/00
British Pound 257 384 (1) 6/7/00
Japanese Yen 106,825 999 13 6/2/00
Balanced Allocation
Fund
Short Contracts
Swiss Franc 81 $ 48 $ -- 6/2/00
Euro 10 9 (9) 6/5/00
British Pound 11 16 -- 6/5/00
British Pound 12 18 -- 6/6/00
British Pound 27 41 -- 6/7/00
Japanese Yen 5,400 51 -- 6/2/00
SECURITIES LENDING: The Funds may participate in a Securities Lending Agreement
("Lending Agreement"). Security loans made pursuant to the Lending Agreement are
required at all times to be secured by U.S. Treasury Obligations and/or cash
collateral at least equal to 100% of the market value of securities issued in
the U.S. Cash collateral received is invested in fixed-income securities, with a
weighted average maturity not to exceed 90 days, rated in one of the top two
tiers by Standard & Poor's ratings group or Moody's Investors Service, Inc. or
repurchase agreements collateralized by such securities. However, in the event
of default or bankruptcy by the lending agent, realization and/or retention of
the collateral may be subject to legal proceedings. In the event that the
borrower fails to return loaned securities and the collateral received is
insufficient to cover the value of the loaned securities and provided such
collateral is not the result of investment losses, the lending agent has agreed
to pay the amount of the shortfall to the funds, or at the discretion of the
lending agent, replace the loaned securities. The market value of the securities
on loan,
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
and related collateral received at May 31, 2000, and income generated for the
period ended May 31, 2000 were as follows:
MARKET MARKET VALUE
VALUE OF OF LOANED
COLLATERAL SECURITIES
(000) (000)
---------- ---------
International Discovery Fund ....... $42,064 $42,064
Small Capitalization ............... 32,074 32,074
Equity Income Fund ................. 10,620 10,620
Balanced Fund ...................... 1,397 1,397
Bond Fund .......................... 59,254 59,254
Intermediate Government
Obligations Fund ................. 26,432 26,432
Limited Maturity Fund .............. 7,621 7,621
FUTURES CONTRACTS: Certain of the Funds may engage in futures contracts for
the purpose of hedging against the value of the portfolio securities held and in
the value of the securities a Fund intends to purchase, in order to maintain
liquidity. Upon entering into a futures contract, a Fund is required to deposit
with the broker an amount of cash or cash equivalents equal to a certain
percentage of the contract amount. This is known as the "initial margin".
Subsequent payments ("variation margin") are made or received by a Fund each
day, depending on the daily fluctuation of the value of the contract. The daily
changes in the contract are recorded as unrealized gain or loss. The Fund
recognizes a realized gain or loss when the contract is closed. The net
unrealized appreciation/(depreciation), if any, is shown in the financial
statements. There were no open futures contracts at May 31, 2000.
There are several risks in connection with the use of futures contracts as a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk that
the Fund may not be able to enter into a closing transaction because of an
illiquid secondary market.
MORTGAGE DOLLAR ROLLS: For the purpose of enhancing the Fund's yield,
certain Funds may enter into mortgage dollar rolls (principally in securities
referred to as TBA's or To Be Announced) in which the Funds sells mortgage
securities for delivery in the current month and simultaneously contracts to
repurchase similar, but not identical, securities at an agreed-upon price on a
fixed date. The Funds account for such dollar rolls as purchases and sales and
maintain liquid high-grade securities in an amount at least equal to its
commitment to repurchase.
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 Bond Fund, Intermediate
Government Obligations Fund, and Limited Maturity Bond Fund changed from
declaring and paying dividends from net investment income monthly to declaring
dividends from net investment income daily and paying monthly.
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.
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.
On the Statements of Net Assets the following adjustments were made:
ACCUMULATED UNDISTRIBUTED PAID
NET REALIZED NET INVESTMENT IN
LOSS INCOME CAPITAL
FUND (000) (000) (000)
------ ------------- -------------- -------
International Discovery
Fund $(22,059) $1,837 $20,222
Small Capitalization
Fund (28,722) 2,436 26,286
Equity Income (14,354) -- 14,354
Fund
Balanced Allocation (7,243) 4 7,239
Fund
Tax-Free Fund (2) 2 --
77
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
EXPENSES: Expenses directly attributable to a Fund are charged to the Fund,
while expenses which are attributable to more than one Fund of the Group are
allocated among the respective Funds based upon relative net assets or another
appropriate basis. In addition, expenses that are directly attributable to a
specific class are charged only to that class.
The investment income and expenses of a Fund (other than class specific
expenses) and realized and unrealized gains and losses on investments of a Fund
are allocated to each class of shares based upon their relative net assets on
the date income is earned or expenses are recognized and realized and unrealized
gains and losses are incurred.
3. INVESTMENTS
During the year ended May 31, 2000, purchases and sales of securities, other
than short-term investments or U.S. government obligations, aggregated:
PURCHASES (000) SALES (000)
-------------- ----------
International Discovery Fund ........... $419,702 $527,578
Small Capitalization Fund .............. 348,490 511,295
Equity Income Fund ..................... 200,569 268,181
Balanced Allocation .................... 187,697 277,534
Bond Fund .............................. 288,557 345,013
Intermediate Government
Obligations Fund ...................... 1,503 2,189
Limited Maturity Bond Fund ............. 60,929 87,810
National Tax Exempt Bond Fund .......... 30,283 65,590
Purchases and sales of long-term U.S. government obligations were:
PURCHASES (000) SALES (000)
-------------- ----------
Balanced Allocation Fund ............... $ 80,775 $ 79,800
Bond Fund .............................. 235,623 234,113
Intermediate Government
Obligations Fund ...................... 69,258 132,451
Limited Maturity Bond Fund ............. 51,003 59,547
At May 31, 2000 the following funds have capital loss carryforwards:
AMOUNT EXPIRATION
(000) DATE
-------------- ----------
Bond Fund ......................... $ 6,211 2008
Intermediate Government
Obligations Fund ................. 12,084 2002-2008
Limited Maturity Bond Fund ........ 9,536 2002-2008
National Tax Exempt Bond Fund ..... 436 2008
U.S. Government Obligations Fund .. 2 2002-2008
Certain funds incurred losses from November 1, 1999 to May 31, 2000. As
permitted by tax regulations, the Funds intend to elect to defer and treat these
losses as arising in the fiscal year ending May 31, 2001. The Funds that elected
to defer losses and the amounts deferred are as follows:
AMOUNT
(000)
--------------
Bond Fund ..................................... $13,637
Intermediate Government Obligations Fund ...... 1,822
Limited Maturity Bond Fund .................... 841
National Tax Exempt Bond Fund ................. 832
At May 31, 2000 the total cost of securities for Federal income tax purposes
was not materially different from amounts reported for financial reporting
purposes. The aggregate gross unrealized appreciation and depreciation on
securities held by the Funds at May 31, 2000, is as follows:
AGGREGATE AGGREGATE
GROSS GROSS
APPRECIATION DEPRECIATION NET
FUND (000) (000) (000)
------ -------------- -------------- --------
International Discovery
Fund ................... $ 69,682 $ (4,910) $ 64,772
Small Capitalization
Fund ................... 73,175 (8,265) 64,910
Equity Income
Fund ................... 32,842 (8,163) 24,679
Balanced Allocation
Fund ................... 23,127 (3,105) 20,022
Bond Fund ................... 808 (10,965) (10,157)
Intermediate Government
Obligations Fund ....... 53 (2,509) (2,456)
Limited Maturity Bond
Fund ................... 59 (3,651) (3,592)
National Tax Exempt
Bond Fund .............. 260 (714) (454)
78
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
4. SHARES OF BENEFICIAL INTEREST:
The Group's Declaration of Trust authorizes the Board of Trustees to issue an
unlimited number of shares of beneficial interest and to classify or reclassify
any unissued shares of the Group into one or more additional classes of shares
and to classify or reclassify any class of shares into one or more series of
shares. Transactions in Capital Shares are summarized below for the Funds.
<TABLE>
<CAPTION>
INTERNATIONAL SMALL
DISCOVERY CAPITALIZATION
FUND FUND
------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS (000):
Investor A shares
<S> <C> <C> <C> <C>
Proceeds from shares issued ...... $107,382 $ 11,371 $ 78,511 $448,789
Dividends reinvested ............. 4,679 1,766 3,008 10,457
Cost of shares redeemed .......... (117,890) (27,594) (114,042) (530,608)
-------- -------- -------- --------
Change in net assets from
Investor A shares ............ (5,829) (14,457) (32,523) (71,362)
======== ======== ======== ========
Investor B shares
Proceeds from shares issued ...... 167 360 708 1,307
Dividends reinvested ............. 1,760 568 1,249 3,253
Cost of shares redeemed .......... (2,662) (4,826) (8,187) (16,532)
-------- -------- -------- --------
Change in net assets from
Investor B shares ............ (735) (3,898) (6,230) (11,972)
======== ======== ======== ========
Investor C shares*
Proceeds from shares issued ...... -- 81 -- 365
Dividends reinvested ............. -- -- -- --
Cost of shares redeemed .......... -- (964) -- (12,866)
-------- -------- -------- --------
Change in net assets from
Investor C shares ............ -- (883) -- (12,501)
======== ======== ======== ========
Institutional Shares
Proceeds from shares issued ...... 20,859 35,881 53,328 43,684
Dividends reinvested ............. 34,938 10,376 9,716 26,444
Cost of shares redeemed .......... (67,360) (165,321) (167,326) (254,355)
-------- -------- -------- --------
Change in net assets from
Institutional Shares ......... (11,563) (119,064) (104,282) (184,227)
======== ======== ======== ========
SHARE TRANSACTIONS (000):
Investor A shares
Issued ........................... 6,305 763 3,147 20,256
Reinvested ....................... 286 118 125 530
Redeemed ......................... (6,842) (1,820) (4,684) (24,004)
-------- -------- -------- --------
Change in Investor A
shares ....................... (251) (939) (1,412) (3,218)
======== ======== ======== ========
Investor B shares
Issued ........................... 10 25 29 62
Reinvested ....................... 115 39 54 171
Redeemed ......................... (165) (332) (370) (834)
-------- -------- -------- --------
Change in Investor B
shares ....................... (40) (268) (287) (601)
======== ======== ======== ========
Investor C shares*
Issued ........................... -- 5 -- 14
Reinvested ....................... -- -- -- --
Redeemed ......................... -- (68) -- (602)
-------- -------- -------- --------
Change in Investor C
shares ....................... -- (63) -- (588)
======== ======== ======== ========
Institutional Shares
Issued ........................... 1,181 2,327 1,866 1,959
Reinvested ....................... 2,096 681 395 1,312
Redeemed ......................... (3,903) (10,816) (6,708) (11,483)
-------- -------- -------- --------
Change in Institutional
Shares ....................... (626) (7,808) (4,447) (8,212)
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
EQUITY BALANCED
INCOME ALLOCATION
FUND FUND
------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS (000):
Investor A shares
<S> <C> <C> <C> <C>
Proceeds from shares issued ....... $ 4,810 $ 6,299 $ 1,144 $ 2,309
Dividends reinvested .............. 21,133 11,212 1,844 796
Cost of shares redeemed ........... (36,394) (36,843) (6,690) (6,419)
-------- -------- -------- ---------
Change in net assets from
Investor A shares ............. (10,451) (19,332) (3,702) (3,314)
======== ======== ======== =========
Investor B shares
Proceeds from shares issued ....... 321 1,162 76 329
Dividends reinvested .............. 6,608 3,079 633 268
Cost of shares redeemed ........... (6,941) (8,817) (1,752) (2,724)
-------- -------- -------- ---------
Change in net assets from
Investor B shares ............. (12) (4,576) (1,043) (2,127)
======== ======== ======== =========
Investor C shares*
Proceeds from shares issued ....... -- 175 -- 94
Dividends reinvested .............. -- 2 -- 3
Cost of shares redeemed ........... -- (1,168) -- (986)
-------- -------- -------- ---------
Change in net assets from
Investor C shares ............. -- (991) -- (889)
======== ======== ======== =========
Institutional Shares
Proceeds from shares issued ....... 114,910 27,050 16,412 29,812
Dividends reinvested .............. 14,866 7,279 18,285 10,268
Cost of shares redeemed ........... (106,303) (85,953) (89,898) (121,859)
-------- -------- -------- ---------
Change in net assets from
Institutional Shares .......... 23,473 (51,624) (55,201) (81,779)
======== ======== ======== =========
SHARE TRANSACTIONS (000):
Investor A shares
Issued ............................ 403 360 81 170
Reinvested ........................ 2,141 678 134 58
Redeemed .......................... (2,791) (2,082) (469) (466)
-------- -------- -------- ---------
Change in Investor A
shares ........................ (247) (1,044) (254) (238)
======== ======== ======== =========
Investor B shares
Issued ............................ 21 65 5 24
Reinvested ........................ 683 188 46 20
Redeemed .......................... (569) (501) (122) (199)
-------- -------- -------- ---------
Change in Investor B
shares ........................ 135 (248) (71) (155)
======== ======== ======== =========
Investor C shares*
Issued ............................ -- 10 -- 7
Reinvested ........................ -- -- -- --
Redeemed .......................... -- (68) -- (75)
-------- -------- -------- ---------
Change in Investor C
shares ........................ -- (58) -- (68)
======== ======== ======== =========
Institutional Shares
Issued ............................ 12,674 1,560 1,174 2,170
Reinvested ........................ 1,519 442 1,337 750
Redeemed .......................... (7,795) (4,892) (6,344) (8,814)
-------- -------- -------- ---------
Change in Institutional
Shares ........................ (6,398) (2,890) (3,833) (5,894)
======== ======== ======== =========
</TABLE>
* Investor C class of shares closed on August 28, 1998.
79
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE
BOND GOVERNMENT OBLIGATIONS
FUND FUND
------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS (000):
Investor A shares
<S> <C> <C> <C> <C>
Proceeds from shares issued ..... $ 5,118 $ 4,227 $ 2,224 $ 1,179
Dividends reinvested ............ 434 621 300 376
Cost of shares redeemed ......... (6,693) (9,208) (4,753) (5,691)
-------- --------- -------- --------
Change in net assets from
Investor A shares ........... (1,141) (4,360) (2,229) (4,136)
======== ========= ======== ========
Investor B shares
Proceeds from shares issued ..... 65 228 19 85
Dividends reinvested ............ 154 224 39 56
Cost of shares redeemed ......... (2,197) (2,173) (731) (727)
-------- --------- -------- --------
Change in net assets from
Investor B shares ........... (1,978) (1,721) (673) (586)
======== ========= ======== ========
Investor C shares*
Proceeds from shares issued ..... -- 62 -- 11
Dividends reinvested ............ -- 7 -- 3
Cost of shares redeemed ......... -- (670) -- (252)
-------- --------- -------- --------
Change in net assets from
Investor C shares ........... -- (601) -- (238)
======== ========= ======== ========
Institutional Shares
Proceeds from shares issued ..... 31,204 44,541 3,494 12,915
Dividends reinvested ............ 13,827 16,294 1,402 2,021
Cost of shares redeemed ......... (97,699) (164,380) (61,902) (51,589)
-------- --------- -------- --------
Change in net assets from
Institutional Shares ........ (52,668) (103,545) (57,006) (36,653)
======== ========= ======== ========
SHARE TRANSACTIONS (000):
Investor A shares
Issued .......................... 553 421 235 119
Reinvested ...................... 46 62 31 38
Redeemed ........................ (709) (921) (495) (572)
-------- --------- -------- --------
Change in Investor A
shares ...................... (110) (438) (229) (415)
======== ========= ======== ========
Investor B shares
Issued .......................... 6 23 2 9
Reinvested ...................... 16 22 4 6
Redeemed ........................ (232) (218) (76) (74)
-------- --------- -------- --------
Change in Investor B
shares ...................... (210) (173) (70) (59)
======== ========= ======== ========
Investor C shares*
Issued .......................... -- 6 -- 2
Reinvested ...................... -- 1 -- --
Redeemed ........................ -- (67) -- (26)
-------- --------- -------- --------
Change in Investor C
shares ...................... -- (60) -- (24)
======== ========= ======== ========
Institutional Shares
Issued .......................... 3,294 4,422 365 1,296
Reinvested ...................... 1,462 1,621 145 203
Redeemed ........................ (10,345) (16,419) (6,453) (5,174)
-------- --------- -------- --------
Change in Institutional
Shares ..................... (5,589) (10,376) (5,943) (3,675)
======== ========= ======== ========
</TABLE>
<TABLE>
<CAPTION>
LIMITED NATIONAL
MATURITY BOND TAX EXEMPT
FUND BOND FUND
------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS (000):
Investor A shares
<S> <C> <C> <C> <C>
Proceeds from shares issued ..... $ 3,465 $ 11,765 $ 1,139 $ 2,525
Dividends reinvested ............ 814 1,546 131 275
Cost of shares redeemed ......... (19,207) (30,528) (4,523) (5,310)
-------- -------- -------- --------
Change in net assets from
Investor A shares ........... (14,928) (17,217) (3,253) (2,510)
======== ======== ======== ========
Investor B shares
Proceeds from shares issued ..... 71 87 -- 25
Dividends reinvested ............ 30 44 6 14
Cost of shares redeemed ......... (335) (854) (75) (248)
-------- -------- -------- --------
Change in net assets from
Investor B shares ........... (234) (723) (69) (209)
======== ======== ======== ========
Investor C shares*
Proceeds from shares issued ..... -- 5 -- --
Dividends reinvested ............ -- 19 -- --
Cost of shares redeemed ......... -- (2,235) -- --
-------- -------- -------- --------
Change in net assets from
Investor C shares ........... -- (2,211) -- --
======== ======== ======== ========
Institutional Shares
Proceeds from shares issued ..... 17,937 28,681 8,056 7,302
Dividends reinvested ............ 2,215 2,473 299 424
Cost of shares redeemed ......... (38,884) (57,561) (40,282) (33,407)
-------- -------- -------- --------
Change in net assets from
Institutional Shares ........ (18,732) (26,407) (31,927) (25,681)
======== ======== ======== ========
SHARE TRANSACTIONS (000):
Investor A shares
Issued .......................... 372 1,233 115 237
Reinvested ...................... 87 162 13 26
Redeemed ........................ (2,056) (3,197) (449) (503)
-------- -------- -------- --------
Change in Investor A
shares ...................... (1,597) (1,802) (321) (240)
======== ======== ======== ========
Investor B shares
Issued .......................... 8 10 -- 2
Reinvested ...................... 3 5 1 1
Redeemed ........................ (37) (90) (7) (23)
-------- -------- -------- --------
Change in Investor B
shares ...................... (26) (75) (6) (20)
======== ======== ======== ========
Investor C shares*
Issued .......................... -- -- -- --
Reinvested ...................... -- 2 -- --
Redeemed ........................ -- (239) -- --
-------- -------- -------- --------
Change in Investor C
shares ...................... -- (237) -- --
======== ======== ======== ========
Institutional Shares
Issued .......................... 1,926 3,008 799 691
Reinvested ...................... 238 260 30 40
Redeemed ........................ (4,171) (6,037) (4,008) (3,163)
-------- -------- -------- --------
Change in Institutional
Shares ..................... (2,007) (2,769) (3,179) (2,432)
======== ======== ======== ========
</TABLE>
* Investor C class of shares closed on August 28, 1998.
80
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
<TABLE>
<CAPTION>
PRIME U.S. GOVERNMENT
OBLIGATIONS TAX-FREE OBLIGATIONS
FUND FUND FUND
------------------------- ------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS (000):
<S> <C> <C> <C> <C> <C> <C>
Investor A shares
Proceeds from shares issued ..................... $ 152,781 $ 605,433 $ 1,343 $ 86,470 $ 18,914 $307,020
Dividends reinvested ............................ 361 3,607 20 462 33 546
Cost of shares redeemed ......................... (154,311) (812,049) (1,658) (141,417) (20,077) (474,744)
--------- -------- --------- --------- -------- --------
Change in net assets from
Investor A shares ........................... (1,169) (203,009) (295) (54,485) (1,130) (167,178)
========= ======== ========= ========= ======== ========
Investor B shares
Proceeds from shares issued ..................... 850 1,445 -- -- -- --
Dividends reinvested ............................ 22 19 -- -- -- --
Cost of shares redeemed ......................... (1,374) (1,086) -- -- -- --
--------- -------- --------- --------- -------- --------
Change in net assets from
Investor B shares ........................... (502) 378 -- -- -- --
========= ======== ========= ========= ======== ========
Institutional Shares
Proceeds from shares issued ..................... 738,648 887,484 160,773 167,432 139,435 228,665
Dividends reinvested ............................ 735 49 -- -- 92 23
Cost of shares redeemed ......................... (813,729) (949,929) (188,308) (161,361) (159,985) (292,597)
--------- -------- --------- --------- -------- --------
Change in net assets from
Institutional Shares ........................ (74,346) (62,396) (27,535) 6,071 (20,458) (63,909)
========= ======== ========= ========= ======== ========
SHARE TRANSACTIONS (000):
Investor A shares
Issued .......................................... 152,781 605,433 1,343 86,469 18,914 307,020
Reinvested ...................................... 361 3,607 20 462 33 546
Redeemed ........................................ (154,311) (812,058) (1,658) (141,418) (20,077) (474,730)
--------- -------- --------- --------- -------- --------
Change in Investor A
shares ...................................... (1,169) (203,018) (295) (54,487) (1,130) (167,164)
========= ======== ========= ========= ======== ========
Investor B shares
Issued .......................................... 850 1,445 -- -- -- --
Reinvested ...................................... 22 19 -- -- -- --
Redeemed ........................................ (1,375) (1,086) -- -- -- --
--------- -------- --------- --------- -------- --------
Change in Investor B
shares ...................................... (503) 378 -- -- -- --
========= ======== ========= ========= ======== ========
Institutional Shares
Issued .......................................... 738,649 887,484 160,773 167,432 139,435 228,665
Reinvested ...................................... 735 49 -- -- 92 23
Redeemed ........................................ (813,730) (949,928) (188,308) (161,361) (159,985) (292,613)
--------- -------- --------- --------- -------- --------
Change in Institutional Shares .................. (74,346) (62,395) (27,535) 6,071 (20,458) (63,613)
========= ======== ========= ========= ======== ========
</TABLE>
* Investor C class of shares closed on August 28, 1998.
81
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
5. RELATED PARTY TRANSACTIONS:
Fees paid by the Group pursuant to the Advisory Agreements with National City
Investment Management Company (the "Adviser"), an indirect wholly owned
subsidiary of National City Corporation, are payable monthly based on an annual
rate, listed in the table on the next page, based on each Fund's average daily
net assets. The advisor from time to time may waive its fees payable by the
Funds. The Group and SEI Investments Mutual Funds Services (the "Administrator")
are parties to an Administration Agreement dated January 1, 2000, under which
the Administrator provides administrative services for an annual fee of 0.10% of
the aggregate average daily net assets of the Funds. Prior to January 1, 2000,
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"), and
BISYS Fund Services Ohio, Inc., which are wholly-owned subsidiaries of the
BISYS Group, Inc. served as the Administrator to the Group. As compensation for
services performed, each Fund paid BISYS an annual fee of 0.20% of the aggregate
average daily net assets of the Funds.
The Group and SEI Investments Mutual Funds Services are parties to a Fund
Accounting Agreement dated April 1, 2000, under which SEI provides fund
accounting services for an annual fee of 0.015% of the aggregate average daily
net assets of the Funds. Prior to April 1, 2000, BISYS Fund Services Limited
Partnership d/b/a BISYS Fund Services ("BISYS"), and BISYS Fund Services Ohio,
Inc., wholly-owned subsidiaries of the BISYS Group, Inc., served as Fund
Accountant to the Group. As compensation for services performed, each fund paid
BISYS an annual fee of 0.035% of the aggregate average daily net assets of the
Funds plus reimbursement of reasonable out-of-pocket expenses.
Each Trustee receives an annual fee of $15,000 plus $3,000 for each Board
meeting attended and reimbursement of out-of-pocket expenses. The Chairman of
the Board receives an additional $5,000 per annum for services in such capacity.
The Trustees and Chairman are paid for services rendered to all of the Funds.
Fees are allocated on a prorata basis across the Funds. No person who is an
officer, director, trustee, or employee of the Investment Adviser, Distributor,
or any parent or subsidiary thereof, who serves as an officer, trustee, or
employee of the Group receives any compensation from the Group.
Trustees who receive fees are eligible for participation in the Company's
Deferred Compensation Plan (the "Plan"), an unfunded, nonqualified deferred
compensation plan. The Plan allows each eligible Trustee to defer receipt of all
or a percentage of fees that would otherwise be payable for services performed.
The Group and SEI Investments Distribution Company are parties to a
distribution agreement dated September 19, 1998. The distributor receives no
fees for its distribution services under this agreement.
The Group has adopted an Investor A Distribution and Shareholder Service Plan
(the "Investor A Plan"), and an Investor B Distribution and Shareholder Service
Plan (the "Investor B 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 Plan, each Fund is authorized to pay or reimburse the distributor of
Investor B 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 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 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.
Fees may be voluntarily reduced to assist the Funds in maintaining competitive
expense ratios. Information regarding fees for the Funds is as follows for the
period ended May 31, 2000:
82
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL SMALL EQUITY BALANCED
DISCOVERY CAPITALIZATION INCOME ALLOCATION BOND
FUND FUND FUND FUND FUND
------------- -------------- ------ ---------- ------
INVESTMENT ADVISORY FEES:
<S> <C> <C> <C> <C> <C>
Annual Fee
(Percentage of average
net assets) .......................... 1.15%(a) 1.00% 0.75% 0.75% 0.55%
ADMINISTRATION FEES:
Annual Fee
(Percentage of average
net assets) .......................... 0.115% 0.115% 0.115% 0.115% 0.115%
12B-1 FEES INVESTOR A:
Annual Fee
(Percentage of average
net assets) .......................... 0.25% 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% 0.75%
SHAREHOLDER SERVICE FEES INVESTOR B:
Annual Fee
(Percentage of average
net assets) .......................... 0.25% 0.25% 0.25% 0.25% 0.25%
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE NATIONAL U.S.
GOVERNMENT LIMITED TAX-EXEMPT PRIME GOVERNMENT
OBLIGATIONS MATURITY BOND OBLIGATIONS TAX-FREE OBLIGATIONS
FUND BOND FUND FUND FUND FUND FUND
------------ --------- ---------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual Fee
(Percentage of average
net assets) 0.55% 0.45% 0.55% 0.35% 0.35% 0.35%
ADMINISTRATION FEES:
Annual Fee
(Percentage of average
net assets) 0.115% 0.115% 0.115% 0.115% 0.115% 0.115%
12B-1 FEES INVESTOR A:
Annual Fee
(Percentage of average
net assets) 0.25% 0.25% 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% -- --
SHAREHOLDER SERVICE FEES INVESTOR B:
Annual Fee
(Percentage of average
net assets) 0.25% 0.25% 0.25% 0.25% -- --
</TABLE>
* Before voluntary fee reductions.
(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.
83
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
6. CONCENTRATION OF CREDIT RISK
The National Tax Exempt Bond Fund follows an investment policy of investing
in municipal obligations of various states which may, at times, comprise
concentrations in one or several states. Economic changes affecting each state
and related public bodies and municipalities may affect the ability of issuers
within the state to pay interest on, or repay principal of, municipal
obligations held by the National Tax Exempt Bond.
At May 31, 2000, the percentage of portfolio investments by each revenue
source were as follows:
Revenue Bonds:
Education ................................ 6%
Industrial Development ................... 1
PollutionControl ......................... 1
Public Facilities ........................ 5
Transportation ........................... 11
Utilities ................................ 28
Other .................................... 7
General Obligations ...................... 41
---
100%
The rating of long-term debt as a percentage of total
value of investments at May 31, 2000, is as follows:
STANDARD & POOR'S/
MOODY'S RATINGS
-----------------------
AAA/Aaa ................................. 63%
AA/Aa ................................... 30
A/A ..................................... 6
NR ...................................... 1
---
100%
Securities rated by only one agency are shown in that category.
Securities rated by both agencies are shown with their lowest
rating.
7. LINE OF CREDIT
Certain funds may borrow, if permitted by prospectus, an amount up to its
prospectus defined limitations, from a $350 million joint line of credit. In
aggregate the Parkstone Group of Funds can borrow up to $58.0 million of the
total line of credit. Borrowings from the line of credit will bear interest at
the Federal Funds Rate plus 2.000%. No amounts were outstanding as of May 31,
2000.
8. SUBSEQUENT EVENT -- PARKSTONE MERGER (UNAUDITED)
The Board of Trustees and shareholders of the Parkstone Group of Funds
approved a reorganization of certain Parkstone Group of Funds ("Reorganizing
Funds") into similarly managed Armada Funds. The Reorganization also provided
for five Parkstone Funds ("Continuing Funds") to be merged into newly-
established Armada investment portfolios. The tax-free reorganization took
place at the close of business on June 9, 2000. Similarly, the reorganization of
the Continuing Funds took place on June 10, 2000, except for the reorganization
of the Parkstone Treasury Fund and the Armada Treasury Plus Money Market Fund,
which occurred on June 16, 2000.
<TABLE>
<CAPTION>
PARKSTONE REORGANIZING FUNDS EXISTING ARMADA FUND
--------------------------------------------------------------------------------
<S> <C>
Prime Obligations Money Market 1
U.S. Government Obligations Government Money Market 1
Tax-Free Tax Exempt Money Market 1
Bond 1 Bond
Limited Maturity Bond Limited Maturity Bond 1 (formerly Enhanced Income)
Intermediate Government Obligations Intermediate Bond 1
Equity Income Equity Income 1
Small Capitalization Small Cap Growth 1
International Discovery International Equity 1
Balanced Allocation Balanced Allocation 1
National Tax Exempt Bond National Tax Exempt Bond 1
</TABLE>
84
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
PARKSTONE CONTINUING FUND NEW ARMADA FUNDS
--------------------------------------------------------------------------------
Large Capitalization 1 Large Cap Ultra
Mid Capitalization 1 Mid Cap Growth
U.S. Government Income 1 U.S. Government Income
Michigan Municipal Bond 1 Michigan Municipal Bond
Treasury 1 Treasury Plus Money Market
--------------------------------------------------------------------------------
1 DENOTES THE SURVIVING OR CONTINUING PORTFOLIO FOR PURPOSES OF MAINTAINING THE
FINANCIAL STATEMENTS AND PERFORMNACE HISTORY IN THE POST-REORGANIZATION FUNDS.
Under the Agreement and Plan of Reorganization the Parkstone I shares were
exchanged for Armada I shares, Parkstone A shares were exchanged for Armada A
shares and Parkstone B shares were exchanged for Armada B shares.
In subsequent financial reporting, the financial information for the Armada
Bond Fund prior to June 9, 2000 will be that of the Parkstone Bond Fund. The
Armada Bond Fund was the surviving net asset value. This means conversion
factors were applied to the Parkstone Bond Fund's financial performance history,
for the respective share classes.
--------------------------------------------------------------------------------
The net assets before and after the reorganization and shares issued and
redeemed by the corresponding Armada Funds were as follows:
<TABLE>
<CAPTION>
EXISTING PARKSTONE
EXISTING COMBINED NET ASSETS PRIOR NET ASSETS ARMADA FUND'S REORGANIZING FUND'S
ARMADA FUNDS AS OF JUNE 9, 2000 AS OF JUNE 9, 2000 SHARES ISSUED SHARES REDEEMED
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Money Market $5,008,943,683 $4,394,894,078 614,038,196 614,038,196
Government Money Market 1,602,629,626 1,498,506,371 104,089,889 104,089,889
Tax Exempt Money Market 628,784,360 535,418,763 93,358,177 93,358,177
Limited Maturity Bond 202,393,175 92,554,395 11,273,126 11,937,935
Intermediate Bond 382,256,189 301,710,283 8,086,393 8,470,934
Bond 934,865,789 626,266,871 32,620,288 33,298,251
Equity Income 734,773,889 501,897,326 15,013,663 24,002,514
Small Cap Growth 452,639,251 184,684,416 17,041,876 11,204,423
International Equity 754,601,736 445,440,153 20,943,493 19,911,559
Balanced Allocation 224,665,290 76,237,123 13,933,236 11,739,478
National Tax Exempt Bond 166,379,126 101,292,106 6,782,394 6,518,841
</TABLE>
<TABLE>
<CAPTION>
NEW PARKSTONE
NEW COMBINED NET ASSETS PRIOR NET ASSETS ARMADA FUND'S CONTINUING FUND'S
ARMADA FUNDS AS OF JUNE 10, 2000 AS OF JUNE 10, 2000 SHARES ISSUED SHARES REDEEMED
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Large Cap Ultra $ 324,621,718 N/A 15,601,834 15,601,834
Mid Cap Growth 368,457,916 N/A 21,700,476 21,700,476
U.S. Government Income 163,774,447 N/A 18,554,018 18,554,018
Michigan Municipal Bond 174,186,214 N/A 16,624,617 16,624,617
Treasury Plus Money Market* 233,032,281 N/A 233,026,341 233,026,341
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* ASSETS MOVED INTO THE TREASURY PLUS MONEY MARKET FUND ON JUNE 16, 2000
85
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Included in the net assets from the Parkstone Funds were the following
components:
<TABLE>
<CAPTION>
UNDISTRIBUTED ACCUMULATED NET UNREALIZED
PAID IN NET INVESTMENT REALIZED APPRECIATION/
PARKSTONE FUND CAPITAL INCOME (LOSS) GAIN (LOSS) DEPRECIATION NET ASSETS
---------------------------------------------------------------------------------------------------------------------------------
REORGANIZING FUNDS
<S> <C> <C> <C> <C> <C>
Prime Obligations $614,043,384 $ -- $ 6,221 $ -- $614,049,605
U.S. Government
Obligations 104,125,202 -- (1,947) -- 104,123,255
Tax-Free 93,362,642 -- 2,955 -- 93,365,597
Limited Maturity Bond 123,442,582 1,305 (10,400,608) (3,204,499) 109,838,780
Intermediate Government
Obligations 96,419,523 -- (13,925,554) (1,948,063) 80,545,906
Bond 336,598,871 56,588 (20,684,216) (7,372,325) 308,598,918
Equity Income 198,245,704 45,148 11,715,646 22,870,065 232,876,563
Small Capitalization 152,247,648 (2,448,519) 27,779,138 90,376,568 267,954,835
International Discovery 200,905,437 (4,121,937) 32,761,819 79,616,264 309,161,583
Balanced Allocation 118,022,915 (151) 6,708,109 23,697,294 148,428,167
National Tax Exempt Bond 66,180,190 -- (1,307,610) 214,440 65,087,020
CONTINUING FUNDS
Large Capitalization 68,963,390 (1,784,939) 127,491,685 129,951,582 324,621,718
Mid Capitalization 114,098,702 (3,200,309) 138,423,500 119,136,023 368,457,916
U.S. Government Income 178,091,984 33,878 (9,826,242) (4,525,173) 163,774,447
Michigan Municipal Bond 172,259,138 2,703 (762,940) 2,687,313 174,186,214
Treasury 233,025,351 1,003 5,927 -- 233,032,281
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
86
<PAGE>
REPORT OF INDEPENDENT AUDITORS
================================================================================
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
THE PARKSTONE GROUP OF FUNDS
We have audited the accompanying statements of net assets of International
Discovery Fund, Small Capitalization Fund, Equity Income Fund, Balanced
Allocation Fund, Bond Fund, Intermediate Government Obligations Fund, Limited
Maturity Bond Fund, National Tax-Exempt Fund (formerly Municipal Bond Fund),
Prime Obligations Fund, Tax-Free Fund, and U.S. Government Income Fund (the
"Funds") as of May 31, 2000, and the related statements of operations,
statements of changes in net assets, and financial highlights for the year then
ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.The statements of changes in net assets for the year ended May 31, 1999
and the financial highlights for the periods presented from June 30, 1995
through May 31, 1999 were audited by other auditors whose report dated July 22,
1999 expressed an unqualified opinion on those financial statements and
financial highlights.
We conducted our audit in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 2000, by correspondence with the
Funds' custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds at May 31, 2000, and the results of their operations,
changes in their net assets, and their financial highlights for the year then
ended, in conformity with accounting principles generally accepted in the United
States.
/s/ ERNST & YOUNG
Philadelphia, Pennsylvania
July 7, 2000
87
<PAGE>
RESULTS OF PROXY VOTING (UNAUDITED)
================================================================================
May 10, 2000 Shareholder Meeting:
A special meeting of the shareholders of the International Discovery, Small
Capitalization, Equity Income, Balanced Allocation, Bond, Intermediate
Government Obligations, Limited Maturity Bond, National Tax Exempt Bond, Prime
Obligations, Tax-Free and U.S. Government Obligations Funds was held on May 10,
2000. Shareholders approved the following proposal.
PROPOSAL:
To approve an Agreement and Plan of Reorganization, attached to the
Combined Prospectus/Proxy Statement for the meeting, which provides for: (a)
transfer of substantially all of the assets and liabilities of each of the
Parkstone Group of Funds into the corresponding fund of the Armada Funds in
exchange for A shares, B shares or I shares, as applicable of such Armada Fund
of equal value; (b) the distribution of the shares of designated classes of the
corresponding Armada Funds to the shareholders of the Parkstone Group of Funds;
and (c) the dissolution under state law and the deregistration under the
Investment Company Act of 1940, as amended, of the Parkstone Group of Funds.
% OF OUTSTANDING % OF DOLLARS
FUND DOLLARS VOTED VOTED
---- ---------------- ------------
INTERNATIONAL DISCOVERY
Affirmative ........... 89.585% 99.514%
Against ............... 0.289% 0.322%
Abstain ............... 0.148% 0.164%
------ -------
Total .............. 90.022% 100.000%
====== =======
SMALL CAPITALIZATION
Affirmative ........... 79.734% 99.052%
Against ............... 0.286% 0.356%
Abstain ............... 0.477% 0.592%
------ -------
Total ........... 80.497% 100.000%
====== =======
EQUITY INCOME
Affirmative ........... 70.080% 97.269%
Against ............... 0.740% 1.027%
Abstain ............... 1.228% 1.704%
------ -------
Total ........... 72.048% 100.000%
====== =======
BALANCED ALLOCATION
Affirmative ........... 90.143% 99.489%
Against ............... 0.191% 0.211%
Abstain ............... 0.272% 0.300%
------ -------
Total ........... 90.606% 100.000%
====== =======
BOND
Affirmative ........... 94.020% 99.810%
Against ............... 0.089% 0.094%
Abstain ............... 0.091% 0.096%
------ -------
Total ........... 94.200% 100.000%
====== =======
88
<PAGE>
RESULTS OF PROXY VOTING (UNAUDITED)
================================================================================
INTERMEDIATE GOVERNMENT OBLIGATIONS
Affirmative ........... 91.352% 99.059%
Against ............... 0.566% 0.614%
Abstain ............... 0.301% 0.327%
------ -------
Total .............. 92.219% 100.000%
====== =======
LIMITED MATURITY BOND
Affirmative ........... 90.360% 99.719%
Against ............... 0.076% 0.084%
Abstain ............... 0.179% 0.197%
------ -------
Total ........... 90.615% 100.000%
====== =======
NATIONAL TAX EXEMPT BOND
Affirmative ........... 96.342% 99.857%
Against ............... 0.019% 0.020%
Abstain ............... 0.119% 0.123%
------ -------
Total ........... 96.480% 100.000%
====== =======
PRIME OBLIGATIONS
Affirmative ........... 74.605% 99.750%
Against ............... 0.119% 0.159%
Abstain ............... 0.068% 0.091%
------ -------
Total ........... 74.792% 100.000%
====== =======
TAX-FREE
Affirmative ........... 85.847% 99.533%
Against ............... 0.033% 0.037%
Abstain ............... 0.371% 0.430%
------ -------
Total ........... 86.251% 100.000%
====== =======
U.S. GOVERNMENT OBLIGATIONS
Affirmative ........... 81.463% 99.986%
Against ............... 0.011% 0.014%
Abstain ............... 0.001% 0.000%
------ -------
Total ........... 81.475% 100.000%
====== =======
89
<PAGE>
PARKSTONE NOTES
<PAGE>
PARKSTONE NOTES
<PAGE>
PARKSTONE NOTES
<PAGE>
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
Garvice D. Kincaid Professor of Finance
and Dean, Gatton College of Business
and Economics, University of Kentucky
Director:
Foam Design, Inc.
The Seed Corporation
Office Suites Plus, Inc.
ihigh.com, Inc.
GERALD L. GHERLEIN
Retired Executive Vice President and
General Counsel, Eaton Corporation
J. WILLIAM PULLEN
President and Chief Executive Officer,
Whayne Supply Company
The Parkstone Trustees also serve as the Trustees of the Armada Funds
and the Armada Advantage Fund. They served as Trustees of the Parkstone Group
of Funds until the completion of its reorganization into Armada Funds on
June 16, 2000.
<PAGE>
ARM-F-013-01000
