FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
January 31, 1995
[LOGO]
FOUNTAIN SQUARE FUNDS
SEMI ANNUAL REPORT AND SUPPLEMENT TO PROSPECTUS DATED AUGUST 1, 1994
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
(A Portfolio of Fountain Square Funds)
--------------------------------------------------------------------------------
SUPPLEMENT TO PROSPECTUS DATED AUGUST 1, 1994
A. Please delete the last sentence of the fourth paragraph on the cover of the
prospectus and replace it with the following:
"You may request a copy of the Statement of Additional Information free of
charge, obtain other information, or make inquiries about the Fund by writing or
calling the Fund at 1-800-654-5372."
B. Please insert the following "Financial Highlights" table for Fountain Square
International Equity Fund after page 2, following the section entitled
"Summary of Fund Expenses" and before the section entitled "Objective of the
Fund." In addition, please add the heading "Financial Highlights" to the
Table of Contents page, after the heading "Summary of Fund Expenses."
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995*
-------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
--------------------------------------------------------------------
Net investment income 0.01
--------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (1.00)
-------------------------------------------------------------------- -----------
Total from investment operations (0.99)
--------------------------------------------------------------------
LESS DISTRIBUTIONS
--------------------------------------------------------------------
Dividends to shareholders from net investment income --
-------------------------------------------------------------------- ------------
NET ASSET VALUE, END OF PERIOD $ 9.01
-----
--------------------------------------------------------------------
TOTAL RETURN** (9.90%)
--------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
--------------------------------------------------------------------
Expenses 1.63%(a)
--------------------------------------------------------------------
Net investment income 0.18%(a)
--------------------------------------------------------------------
SUPPLEMENTAL DATA
--------------------------------------------------------------------
Net assets, end of period (000 omitted) $71,122
--------------------------------------------------------------------
Portfolio turnover rate 16%
--------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from August 19, 1994 (date of initial
public investment) to January 31, 1995.
** Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(See Notes which are an integral part of the financial statements)
C. Please delete the section entitled "When-Issued and Delayed Delivery
Transactions" on page 5 and replace it with the following:
"WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS. The Fund may purchase securities
on a when-issued or delayed delivery basis. These transactions are arrangements
in which the Fund purchases securities with payment and delivery scheduled for a
future time. The seller's failure to complete these transactions may cause the
Fund to miss a price or yield considered to be advantageous. Settlement dates
may be a month or more after entering into these transactions, and the market
values of the securities purchased may vary from the purchase prices.
Accordingly, the Fund may pay more or less than the market value of the
securities on the settlement date.
The Fund may dispose of a commitment prior to settlement if the sub-adviser
deems it appropriate to do so. In addition, the Fund may enter into transactions
to sell its purchase commitments to third parties at current market values and
simultaneously acquire other commitments to purchase similar securities at later
dates. The Fund may realize short-term profits or losses upon the sale of such
commitments."
D. Please insert the following as the second paragraph of the section entitled
"Lending of Portfolio Securities" on page 5:
"There is the risk that when lending portfolio securities, the securities may
not be available to the Fund on a timely basis and the Fund may, therefore, lose
the opportunity to sell the securities at a desirable price. In addition, in the
event that a borrower of securities would file for bankruptcy or become
insolvent, disposition of the securities may be delayed pending court action."
E. Please delete the last sentence of the section entitled "Forward Foreign
Currency Exchange Contracts" on page 5 and replace it with the following:
"The Fund will not enter into forward contracts for hedging purposes in a
particular currency in an amount in excess of the Fund's assets denominated in
that currency, but as consistent with its other investment policies, is not
otherwise limited in its ability to use this strategy."
F. Please delete the first paragraph of the section entitled "Administrative
Arrangements" on page 10 and replace it with the following. In addition,
please delete the heading "Administrative Arrangements" from the Table of
Contents page and replace it with the heading "Other Payments to Financial
Institutions."
"OTHER PAYMENTS TO FINANCIAL INSTITUTIONS. The distributor, the Adviser, or
their affiliates may also offer to pay a fee from their own assets to financial
institutions as financial assistance for providing substantial marketing and
sales support. The support may include initiating customer accounts, providing
sales literature, or participating in sales, educational and training seminars
(including those held at recreational facilities). Such assistance will be
predicted upon the amount of shares the financial institutional sells or may
sell and/or upon the type and nature of sales or marketing support furnished by
the financial institution. Any payments made by the distributor may be
reimbursed by the Adviser or its affiliates."
G. Please delete the section entitled "Legal Counsel" from page 10. In addition,
please delete the heading "Legal Counsel" from the Table of Contents page,
and delete the references to "Legal Counsel" on the address page.
H. Please revise the references to "Independent Auditors" on page 10 and the
address page to refer to Ernst & Young LLP.
I. Please delete the sales charge table under the section entitled "Fifth Third
Bank Club 53, One Account Plus or One Account Gold Programs" on page 13 and
replace it with the following:
<TABLE>
<CAPTION>
SALES CHARGE AS SALES CHARGE AS
A PERCENTAGE A PERCENTAGE
OF PUBLIC OF NET AMOUNT
AMOUNT OF TRANSACTION OFFERING PRICE INVESTED
------------------------------------------------------- ----------------
<S> <C> <C>
Less than $50,000...................................... 3.97% 4.13%
$50,000-$99,999........................................ 3.47% 3.59%
$100,000-$149,999...................................... 2.47% 2.53%
$150,000-$249,999...................................... 1.47% 1.49%
$250,000-$499,999...................................... 0.47% 0.47%
$500,000 or more....................................... 0.00% 0.00%
</TABLE>
J. Please insert the following as the second paragraph of the section entitled
"Voting Rights" which begins on page 16:
"As of January 31, 1995, Fifth Third Bank, may for certain purposes be deemed to
control the Fund because it is owner of record of certain shares of the Fund."
K. Please insert the following Financial Statements after the section entitled
"Performance Information" and before the address page. In addition, please
add the heading "Financial Statements" to the Table of Contents page after
the heading "Performance Information."
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--88.2%
-------------------------------------------------------------------------------------
AUSTRALIA--7.9%
-------------------------------------------------------------------
BANKING--1.2%
-------------------------------------------------------------------
93,300 Westpac Banking Corporation Ltd. $ 317,901
-------------------------------------------------------------------
70,587 National Australia Bank Ltd. 555,848
------------------------------------------------------------------- -----------
Total 873,749
------------------------------------------------------------------- -----------
BEVERAGES & TOBACCO--0.3%
-------------------------------------------------------------------
15,795 Coca Cola Amatil Ltd. 101,657
-------------------------------------------------------------------
157,200 Fosters Brewing Group Ltd. 129,741
------------------------------------------------------------------- -----------
Total 231,398
------------------------------------------------------------------- -----------
BROADCASTING & PUBLISHING--0.5%
-------------------------------------------------------------------
95,809 News Corp Ltd. 364,899
------------------------------------------------------------------- -----------
BUILDING PRODUCTS--0.4%
-------------------------------------------------------------------
64,100 Boral Ltd. 158,225
-------------------------------------------------------------------
48,100 Pioneer International 115,088
------------------------------------------------------------------- -----------
Total 273,313
------------------------------------------------------------------- -----------
CHEMICALS--0.2%
-------------------------------------------------------------------
17,500 ICI Australia Ltd. 129,194
------------------------------------------------------------------- -----------
DIVERSIFIED--0.1%
-------------------------------------------------------------------
36,599 South Corp Holdings Ltd. 79,256
------------------------------------------------------------------- -----------
ENERGY--1.8%
-------------------------------------------------------------------
17,437 Ampolex Ltd. 44,626
-------------------------------------------------------------------
84,716 Broken Hill Proprietary Co. Ltd. 1,182,836
-------------------------------------------------------------------
33,155 Santos Ltd. 82,091
------------------------------------------------------------------- -----------
Total 1,309,553
------------------------------------------------------------------- -----------
FOOD & HOUSEHOLD PRODUCTS--0.1%
-------------------------------------------------------------------
66,230 Goodman Fielder Wattie Ltd. 60,177
------------------------------------------------------------------- -----------
FOREST PRODUCTS--0.3%
-------------------------------------------------------------------
30,900 Amcor Ltd. 209,167
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
AUSTRALIA--CONTINUED
-------------------------------------------------------------------
INDUSTRIAL GOODS & SERVICES--0.5%
-------------------------------------------------------------------
29,104 Australian National Industries $ 30,411
-------------------------------------------------------------------
50,825 CSR Ltd. 163,940
-------------------------------------------------------------------
57,579 Pacific Dunlop Ltd. 133,409
------------------------------------------------------------------- -----------
Total 327,760
------------------------------------------------------------------- -----------
METALS & MINING--0.1%
-------------------------------------------------------------------
16,300 Newcrest Mining Ltd. 59,859
------------------------------------------------------------------- -----------
METALS--NON-FERROUS--1.4%
-------------------------------------------------------------------
31,700 CRA Ltd. 396,522
-------------------------------------------------------------------
80,300 MIM Holdings Ltd. 120,387
-------------------------------------------------------------------
42,165 North Ltd. 95,779
-------------------------------------------------------------------
15,200 Renison Goldfields Consolidated Ltd. 53,402
-------------------------------------------------------------------
51,700 Western Mining Ltd. 266,193
------------------------------------------------------------------- -----------
Total 932,283
------------------------------------------------------------------- -----------
RETAIL STORES--0.3%
-------------------------------------------------------------------
68,300 Coles Myer Ltd. 217,721
------------------------------------------------------------------- -----------
REAL ESTATE--0.4%
-------------------------------------------------------------------
39,521 General Property Trust Units 65,834
-------------------------------------------------------------------
13,073 Lend Lease Corp. Ltd. 153,230
-------------------------------------------------------------------
45,900 Westfield Trust 78,893
------------------------------------------------------------------- -----------
Total 297,957
------------------------------------------------------------------- -----------
SERVICES--0.1%
-------------------------------------------------------------------
12,200 Brambles Industries Ltd. 105,308
------------------------------------------------------------------- -----------
TRANSPORTATION--0.1%
-------------------------------------------------------------------
23,700 TNT Australian 34,455
------------------------------------------------------------------- -----------
WHOLESALE & INTERNATIONAL TRADE--0.1%
-------------------------------------------------------------------
32,044 Burns Philp & Co. Ltd. 80,311
------------------------------------------------------------------- -----------
TOTAL AUSTRALIA 5,586,360
------------------------------------------------------------------- -----------
BELGIUM--5.8%
-------------------------------------------------------------------
BANKING--0.8%
-------------------------------------------------------------------
1,200 Kredietbank 244,580
-------------------------------------------------------------------
1,300 Generale de Banque 336,506
------------------------------------------------------------------- -----------
Total 581,086
------------------------------------------------------------------- -----------
BUILDING PRODUCTS--0.2%
-------------------------------------------------------------------
350 Cimenteries CBR 132,145
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
BELGIUM--CONTINUED
-------------------------------------------------------------------
CHEMICALS--0.7%
-------------------------------------------------------------------
2,250 Gevaert Photo-Producten NV $ 103,668
-------------------------------------------------------------------
725 Solvay Et Cie 360,139
------------------------------------------------------------------- -----------
Total 463,807
------------------------------------------------------------------- -----------
ENERGY--0.8%
-------------------------------------------------------------------
2,000 Petrofina SA 592,573
------------------------------------------------------------------- -----------
GAS & ELECTRIC UTILITY--1.2%
-------------------------------------------------------------------
850 Electrabel NPV Parts 155,566
-------------------------------------------------------------------
3,900 Electrabel Ords. Parts 710,032
------------------------------------------------------------------- -----------
Total 865,598
------------------------------------------------------------------- -----------
INDUSTRIAL HOLDING COMPANY--1.0%
-------------------------------------------------------------------
200 Bekaert SA 138,064
-------------------------------------------------------------------
2,050 Groupe Bruxelles Lambert 241,381
-------------------------------------------------------------------
1,125 Tractebel 327,923
------------------------------------------------------------------- -----------
Total 707,368
------------------------------------------------------------------- -----------
INSURANCE--0.6%
-------------------------------------------------------------------
3,000 AG Financiere Cie Financiere Et 247,172
-------------------------------------------------------------------
1,150 Royale Belge 164,477
------------------------------------------------------------------- -----------
Total 411,649
------------------------------------------------------------------- -----------
MISCELLANEOUS MATERIALS & COMMODITIES--0.1%
-------------------------------------------------------------------
450 Glaverbel SA 64,937
------------------------------------------------------------------- -----------
MERCHANDISING--0.2%
-------------------------------------------------------------------
4,500 Delhaize Freres 169,901
------------------------------------------------------------------- -----------
TRANSPORTATION--0.2%
-------------------------------------------------------------------
2,200 ACEC-Union Miniere SA 161,901
------------------------------------------------------------------- -----------
TOTAL BELGIUM 4,150,965
------------------------------------------------------------------- -----------
FRANCE--9.3%
-------------------------------------------------------------------
AUTOMOTIVE--0.2%
-------------------------------------------------------------------
1,350 Peugeot SA 176,891
------------------------------------------------------------------- -----------
BANKING--1.2%
-------------------------------------------------------------------
5,200 Banque Nationale de Paris 232,690
-------------------------------------------------------------------
3,100 Cie Financiere de Paribas SA 191,247
-------------------------------------------------------------------
2,300 Societe Generale 223,512
-------------------------------------------------------------------
4,500 Cie de Suez Compagnie 198,542
------------------------------------------------------------------- -----------
Total 845,991
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
FRANCE--CONTINUED
-------------------------------------------------------------------
BEVERAGES & TOBACCO--0.6%
-------------------------------------------------------------------
2,100 LVMH Moet Vuitton $ 334,270
-------------------------------------------------------------------
1,450 Pernod Ricard 82,974
------------------------------------------------------------------- -----------
Total 417,244
------------------------------------------------------------------- -----------
BUILDING PRODUCTS--0.2%
-------------------------------------------------------------------
2,500 LaFarge-Coppee 174,247
------------------------------------------------------------------- -----------
BUSINESS SERVICES--0.5%
-------------------------------------------------------------------
3,100 Cie Generale des Eaux 278,853
-------------------------------------------------------------------
1,550 Havas SA 108,151
------------------------------------------------------------------- -----------
Total 387,004
------------------------------------------------------------------- -----------
CHEMICALS--0.6%
-------------------------------------------------------------------
2,000 Air Liquide (L') 276,514
-------------------------------------------------------------------
7,000 Rhone Poulenc SA 168,932
------------------------------------------------------------------- -----------
Total 445,446
------------------------------------------------------------------- -----------
CONSTRUCTION--0.1%
-------------------------------------------------------------------
775 Bouygues 76,051
------------------------------------------------------------------- -----------
CONSUMER GOODS & SERVICES--0.1%
-------------------------------------------------------------------
340 BIC 43,257
------------------------------------------------------------------- -----------
DEFENSE--0.3%
-------------------------------------------------------------------
3,900 Thomson CSF 102,129
-------------------------------------------------------------------
150 Sagem 74,995
------------------------------------------------------------------- -----------
Total 177,124
------------------------------------------------------------------- -----------
ELECTRICAL & ELECTRONIC--0.7%
-------------------------------------------------------------------
4,200 Alcatel Alsthom 362,784
-------------------------------------------------------------------
90 Legrand 107,315
------------------------------------------------------------------- -----------
Total 470,099
------------------------------------------------------------------- -----------
ENERGY--1.2%
-------------------------------------------------------------------
6,900 Societe Elf Aquitane SA 500,474
-------------------------------------------------------------------
5,700 Total SA Class B 322,922
------------------------------------------------------------------- -----------
Total 823,396
------------------------------------------------------------------- -----------
FINANCIAL SERVICES--0.1%
-------------------------------------------------------------------
650 Cie Bancaire 56,491
-------------------------------------------------------------------
125 EuraFrance 36,894
------------------------------------------------------------------- -----------
Total 93,385
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
FRANCE--CONTINUED
-------------------------------------------------------------------
FOOD PRODUCTS & SERVICES--0.4%
-------------------------------------------------------------------
2,100 Groupe Danone $ 289,940
------------------------------------------------------------------- -----------
FOOD & HOUSEHOLD PRODUCTS--0.3%
-------------------------------------------------------------------
875 Eridania Begsin-Say 116,482
-------------------------------------------------------------------
300 Saint Louis-Bouchon 73,997
------------------------------------------------------------------- -----------
Total 190,479
------------------------------------------------------------------- -----------
HEALTH & PERSONAL CARE--0.6%
-------------------------------------------------------------------
1,700 L'Oreal 347,544
-------------------------------------------------------------------
2,300 Sanofi SA 111,975
------------------------------------------------------------------- -----------
Total 459,519
------------------------------------------------------------------- -----------
INDUSTRIAL GOODS & SERVICES--0.2%
-------------------------------------------------------------------
3,100 Michelin Class B 116,729
------------------------------------------------------------------- -----------
INDUSTRIAL HOLDING COMPANY--0.3%
-------------------------------------------------------------------
150 Chargeurs 31,892
-------------------------------------------------------------------
1,950 Lyonnaise des Eaux 153,528
------------------------------------------------------------------- -----------
Total 185,420
------------------------------------------------------------------- -----------
INSURANCE--0.3%
-------------------------------------------------------------------
4,400 AXA 179,236
------------------------------------------------------------------- -----------
LEISURE--0.1%
-------------------------------------------------------------------
750 Accor SA 76,165
------------------------------------------------------------------- -----------
MACHINERY & EQUIPMENT--0.1%
-------------------------------------------------------------------
1,500 Schneider SA 99,556
------------------------------------------------------------------- -----------
MISCELLANEOUS MATERIALS & COMMODITIES--0.4%
-------------------------------------------------------------------
2,300 Cie de St. Gobain (Compagnide) 265,502
------------------------------------------------------------------- -----------
MERCHANDISING--0.7%
-------------------------------------------------------------------
725 Carrefour 281,406
-------------------------------------------------------------------
2,200 Casino Guichard Perrachon Et Cie 53,971
-------------------------------------------------------------------
525 Pinault Printemps Redoute 96,347
-------------------------------------------------------------------
575 Promodes 97,322
------------------------------------------------------------------- -----------
Total 529,046
------------------------------------------------------------------- -----------
REAL ESTATE--0.1%
-------------------------------------------------------------------
775 Simco-Union SA 59,912
------------------------------------------------------------------- -----------
TOTAL FRANCE 6,581,639
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
GREAT BRITAIN--9.5%
-------------------------------------------------------------------
AEROSPACE & MILITARY TECHNOLOGY--0.1%
-------------------------------------------------------------------
4,888 British Aerospace PLC $ 36,160
------------------------------------------------------------------- -----------
APPLIANCES & HOUSEHOLD PRODUCTS--0.1%
-------------------------------------------------------------------
5,500 Thorn EMI PLC 88,971
------------------------------------------------------------------- -----------
BANKING--1.0%
-------------------------------------------------------------------
18,400 Abbey National PLC 122,390
-------------------------------------------------------------------
19,800 Barclays PLC 181,994
-------------------------------------------------------------------
21,300 HSBC Holdings PLC 206,602
-------------------------------------------------------------------
12,700 Lloyds Bank PLC 108,669
-------------------------------------------------------------------
9,884 Royal Bank of Scotland 60,881
------------------------------------------------------------------- -----------
Total 680,536
------------------------------------------------------------------- -----------
BEVERAGES & TOBACCO--0.3%
-------------------------------------------------------------------
9,600 Bass PLC 78,638
-------------------------------------------------------------------
18,700 Guiness PLC 123,198
------------------------------------------------------------------- -----------
Total 201,836
------------------------------------------------------------------- -----------
BROADCASTING & PUBLISHING--0.1%
-------------------------------------------------------------------
8,500 Reed International PLC 98,909
------------------------------------------------------------------- -----------
BUILDING PRODUCTS--0.3%
-------------------------------------------------------------------
7,700 BPB Industries PLC 37,893
-------------------------------------------------------------------
11,300 Blue Circle Industries 47,538
-------------------------------------------------------------------
2,900 RMC Group PLC 42,400
-------------------------------------------------------------------
7,100 Redland PLC 47,565
-------------------------------------------------------------------
12,000 Tarmac PLC 21,622
------------------------------------------------------------------- -----------
Total 197,018
------------------------------------------------------------------- -----------
BUSINESS SERVICES--0.2%
-------------------------------------------------------------------
3,217 De La Rue Ltd. 51,274
-------------------------------------------------------------------
5,800 North West Water Group PLC 45,025
-------------------------------------------------------------------
6,178 Thames Water PLC 45,311
------------------------------------------------------------------- -----------
Total 141,610
------------------------------------------------------------------- -----------
CHEMICALS--0.3%
-------------------------------------------------------------------
5,800 BOC Group PLC 64,821
-------------------------------------------------------------------
4,500 Courtaulds PLC 28,789
-------------------------------------------------------------------
7,700 Imperial Chemical Industries PLC 90,945
------------------------------------------------------------------- -----------
Total 184,555
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
GREAT BRITAIN--CONTINUED
-------------------------------------------------------------------
CONGLOMERATES--0.0%
-------------------------------------------------------------------
7,900 Lonrho PLC $ 19,063
------------------------------------------------------------------- -----------
CONSTRUCTION--0.0%
-------------------------------------------------------------------
6,500 Taylor Woodrow PLC 13,208
------------------------------------------------------------------- -----------
CONTAINERS & PACKAGING--0.1%
-------------------------------------------------------------------
5,200 Bowater PLC 33,103
------------------------------------------------------------------- -----------
ELECTRICAL & ELECTRONIC--0.2%
-------------------------------------------------------------------
34,500 General Electric PLC 149,519
------------------------------------------------------------------- -----------
ENERGY--0.6%
-------------------------------------------------------------------
61,355 British Petroleum Co. PLC 398,857
-------------------------------------------------------------------
2,624 Burmah Castrol PLC 34,075
-------------------------------------------------------------------
9,700 Lasmo PLC 22,482
------------------------------------------------------------------- -----------
Total 455,414
------------------------------------------------------------------- -----------
ENTERTAINMENT--0.0%
-------------------------------------------------------------------
4,800 Rank Organisation Group 28,118
------------------------------------------------------------------- -----------
FOOD PRODUCTS & SERVICES--0.1%
-------------------------------------------------------------------
5,200 Associated British Foods 48,622
------------------------------------------------------------------- -----------
FOOD & HOUSEHOLD PRODUCTS--0.3%
-------------------------------------------------------------------
10,900 Cadbury Schweppes PLC 72,849
-------------------------------------------------------------------
6,900 Unilever PLC 128,487
------------------------------------------------------------------- -----------
Total 201,336
------------------------------------------------------------------- -----------
FOREST PRODUCTS--0.1%
-------------------------------------------------------------------
12,900 Arjo Wiggins Appleton 46,282
------------------------------------------------------------------- -----------
GAS & ELECTRIC UTILITY--0.7%
-------------------------------------------------------------------
51,600 British Gas PLC 248,612
-------------------------------------------------------------------
5,500 Eastern Group PLC 61,992
-------------------------------------------------------------------
13,900 National Power PLC 104,815
-------------------------------------------------------------------
8,100 Scottish Power PLC 42,177
-------------------------------------------------------------------
3,400 Southern Electric PLC 39,887
------------------------------------------------------------------- -----------
Total 497,483
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
GREAT BRITAIN--CONTINUED
-------------------------------------------------------------------
HEALTH & PERSONAL CARE--0.8%
-------------------------------------------------------------------
25,400 Glaxo Holdings PLC $ 249,193
-------------------------------------------------------------------
14,100 Smithkline Beecham "A" 101,846
-------------------------------------------------------------------
13,600 Smithkline Beecham Equity Units 92,514
-------------------------------------------------------------------
6,600 Zeneca PLC 91,678
------------------------------------------------------------------- -----------
Total 535,231
------------------------------------------------------------------- -----------
INDUSTRIAL HOLDING COMPANY--0.8%
-------------------------------------------------------------------
38,200 BTR PLC 181,928
-------------------------------------------------------------------
6,100 BICC PLC 29,535
-------------------------------------------------------------------
24,800 Grand Metropolitan 142,323
-------------------------------------------------------------------
55,066 Hanson PLC 200,841
-------------------------------------------------------------------
4,500 T.I. Group 23,931
-------------------------------------------------------------------
11,600 Trafalgar House PLC 12,154
------------------------------------------------------------------- -----------
Total 590,712
------------------------------------------------------------------- -----------
INSURANCE--1.1%
-------------------------------------------------------------------
11,300 Boots Co. PLC 83,774
-------------------------------------------------------------------
4,600 Commercial Union PLC 36,001
-------------------------------------------------------------------
6,300 General Accident PLC 50,056
-------------------------------------------------------------------
11,000 Great Universal 90,456
-------------------------------------------------------------------
14,874 Guardian Royal Exchange PLC 40,141
-------------------------------------------------------------------
31,300 Marks & Spencer PLC 188,320
-------------------------------------------------------------------
22,700 Prudential Corporation PLC 105,406
-------------------------------------------------------------------
8,100 Royal Insurance Holdings PLC 33,947
-------------------------------------------------------------------
18,107 Sainsbury (J) PLC 122,166
-------------------------------------------------------------------
7,500 Sedgwick Group PLC 18,455
------------------------------------------------------------------- -----------
Total 768,722
------------------------------------------------------------------- -----------
LEISURE--0.1%
-------------------------------------------------------------------
15,200 Ladbroke Group PLC 39,815
-------------------------------------------------------------------
11,400 Forte PLC 42,710
------------------------------------------------------------------- -----------
Total 82,525
------------------------------------------------------------------- -----------
MACHINERY & EQUIPMENT--0.1%
-------------------------------------------------------------------
4,800 GKN PLC 41,453
------------------------------------------------------------------- -----------
MISCELLANEOUS MATERIALS & COMMODITIES--0.0%
-------------------------------------------------------------------
12,994 Pilkington PLC 29,498
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
GREAT BRITAIN--CONTINUED
-------------------------------------------------------------------
MERCHANDISING--0.1%
-------------------------------------------------------------------
13,300 Argyll Group PLC $ 57,641
-------------------------------------------------------------------
16,800 Sears PLC 26,270
-------------------------------------------------------------------
17,100 Tesco PLC 67,323
------------------------------------------------------------------- -----------
Total 151,234
------------------------------------------------------------------- -----------
METALS--NON-FERROUS--0.2%
-------------------------------------------------------------------
13,200 RTZ Corp. 163,030
------------------------------------------------------------------- -----------
METALS--STEEL--0.1%
-------------------------------------------------------------------
31,300 British Steel PLC 73,291
------------------------------------------------------------------- -----------
PAPER PRODUCTS--0.1%
-------------------------------------------------------------------
7,100 Caradon PLC 25,586
-------------------------------------------------------------------
17,000 Harrison & Crossfield PLC 24,447
------------------------------------------------------------------- -----------
Total 50,033
------------------------------------------------------------------- -----------
PRINTING & PUBLISHING--0.2%
-------------------------------------------------------------------
17,000 Reuters Holdings PLC 117,935
------------------------------------------------------------------- -----------
REAL ESTATE--0.1%
-------------------------------------------------------------------
6,800 Land Securities PLC 59,912
-------------------------------------------------------------------
5,200 MEPC British Registered 30,709
-------------------------------------------------------------------
3,900 Slough Estates 13,992
------------------------------------------------------------------- -----------
Total 104,613
------------------------------------------------------------------- -----------
TEXTILE PRODUCTS--0.0%
-------------------------------------------------------------------
7,700 Coats Viyella 21,147
------------------------------------------------------------------- -----------
TOBACCO--0.3%
-------------------------------------------------------------------
31,300 B.A.T. Industries PLC 222,606
------------------------------------------------------------------- -----------
TRANSPORTATION--AIRLINES--0.1%
-------------------------------------------------------------------
10,500 British Airways PLC 61,091
------------------------------------------------------------------- -----------
TRANSPORTATION--ROAD & RAIL--0.1%
-------------------------------------------------------------------
9,400 Peninsular & Oriental Steam Navi 84,611
------------------------------------------------------------------- -----------
TELECOMMUNICATIONS--0.8%
-------------------------------------------------------------------
62,200 British Telecommunications PLC 393,489
-------------------------------------------------------------------
23,037 Cable & Wireless PLC 134,948
-------------------------------------------------------------------
11,300 Vodafone Group PLC 33,725
------------------------------------------------------------------- -----------
Total 562,162
------------------------------------------------------------------- -----------
TOTAL GREAT BRITAIN 6,781,637
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
HONG KONG--0.0%
-------------------------------------------------------------------
REAL ESTATE--0.0%
-------------------------------------------------------------------
428 New World Developments Co. Ltd. $ 951
------------------------------------------------------------------- -----------
INDONESIA--1.9%
-------------------------------------------------------------------
AGRICULTURE--0.1%
-------------------------------------------------------------------
47,000 Sinar Mas Agro Res. 60,951
------------------------------------------------------------------- -----------
BANKING--0.1%
-------------------------------------------------------------------
54,000 Bank DaGang Naisonal Indo 76,728
------------------------------------------------------------------- -----------
FOREST PRODUCTS--0.6%
-------------------------------------------------------------------
311,000 Barito Pacific Timber 441,895
------------------------------------------------------------------- -----------
HOTELS & LODGING--0.2%
-------------------------------------------------------------------
86,000 Jakarta International Hotel & Development 117,347
-------------------------------------------------------------------
9,000 Matahari Putra Prima 14,615
------------------------------------------------------------------- -----------
Total 131,962
------------------------------------------------------------------- -----------
METALS & MINING--0.1%
-------------------------------------------------------------------
31,000 United Tractors 62,925
------------------------------------------------------------------- -----------
TEXTILE PRODUCTS--0.0%
-------------------------------------------------------------------
4,000 Mayatexdian Industry 1,579
-------------------------------------------------------------------
9,000 Pan Brothers Tex I 4,465
------------------------------------------------------------------- -----------
Total 6,044
------------------------------------------------------------------- -----------
TIRE & RUBBER--0.1%
-------------------------------------------------------------------
88,000 Gudjah Tunggal 98,244
------------------------------------------------------------------- -----------
TOBACCO--0.7%
-------------------------------------------------------------------
100,000 Hanjaya Mandala Sampoerna 480,394
------------------------------------------------------------------- -----------
TOTAL INDONESIA 1,359,143
------------------------------------------------------------------- -----------
ITALY--7.5%
-------------------------------------------------------------------
AGRICULTURE--0.1%
-------------------------------------------------------------------
65,100 Parmalat Finanziaria SPA 70,529
------------------------------------------------------------------- -----------
AUTOMOTIVE--1.1%
-------------------------------------------------------------------
175,000 Fiat SPA 647,701
-------------------------------------------------------------------
38,000 Fiat SPA, non-convertible 96,100
-------------------------------------------------------------------
15,000 Gilardini Inds. 38,403
------------------------------------------------------------------- -----------
Total 782,204
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
ITALY--CONTINUED
-------------------------------------------------------------------
BANKING--1.0%
-------------------------------------------------------------------
17,000 Banca Nazionale Dell Agricultura $ 37,844
-------------------------------------------------------------------
92,000 Banca Commerciale Italiana 230,653
-------------------------------------------------------------------
30,000 Banco Ambrosiano Veneto 81,489
-------------------------------------------------------------------
118,500 Credito Italiano 147,991
-------------------------------------------------------------------
38,000 Istituto Bancario San 237,285
------------------------------------------------------------------- -----------
Total 735,262
------------------------------------------------------------------- -----------
BUILDING PRODUCTS--0.1%
-------------------------------------------------------------------
10,500 Italcementi 81,957
-------------------------------------------------------------------
4,750 Italcementi Di 18,345
------------------------------------------------------------------- -----------
Total 100,302
------------------------------------------------------------------- -----------
CHEMICALS--0.3%
-------------------------------------------------------------------
315,000 Montedison SPA 243,061
------------------------------------------------------------------- -----------
COMPUTER HARDWARE--0.1%
-------------------------------------------------------------------
65,000 Olivetti ING C, & Co. 84,018
------------------------------------------------------------------- -----------
ENGINEERING--0.0%
-------------------------------------------------------------------
9,000 Impregilo SPA 9,087
------------------------------------------------------------------- -----------
FINANCIAL SERVICES--0.4%
-------------------------------------------------------------------
13,000 Fidis 31,212
-------------------------------------------------------------------
25,500 Mediobanca Banca Di Credito Fina 223,321
------------------------------------------------------------------- -----------
Total 254,533
------------------------------------------------------------------- -----------
FOREST PRODUCTS--0.1%
-------------------------------------------------------------------
4,000 Saffa Class A 11,489
-------------------------------------------------------------------
20,000 She Sta Meridionale Finanz 48,706
------------------------------------------------------------------- -----------
Total 60,195
------------------------------------------------------------------- -----------
FURNITURE--0.0%
-------------------------------------------------------------------
3,000 Falck, Accia & Ferr Lombarde 6,257
------------------------------------------------------------------- -----------
GAS & ELECTRIC UTILITY--0.2%
-------------------------------------------------------------------
34,000 Edison SPA 159,231
------------------------------------------------------------------- -----------
GAS UTILITY--0.1%
-------------------------------------------------------------------
38,000 Italgas 105,236
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
ITALY--CONTINUED
-------------------------------------------------------------------
INSURANCE--1.7%
-------------------------------------------------------------------
40,350 Assicurazioni Generali SPA $ 976,342
-------------------------------------------------------------------
19,600 R.A.S. 188,977
-------------------------------------------------------------------
6,500 S.A.I. 76,915
------------------------------------------------------------------- -----------
Total 1,242,234
------------------------------------------------------------------- -----------
MANUFACTURING--CONSUMER GOODS--0.1%
-------------------------------------------------------------------
5,000 Sasib 26,258
-------------------------------------------------------------------
35,000 Snia BPD SPA 45,240
------------------------------------------------------------------- -----------
Total 71,498
------------------------------------------------------------------- -----------
OIL & GAS EXPLORATION PRODUCT & SERVICES--0.1%
-------------------------------------------------------------------
22,500 Saipem 43,835
------------------------------------------------------------------- -----------
PAPER PRODUCTS--0.1%
-------------------------------------------------------------------
5,000 Burgo (Cartiere) Spaitalian 35,281
------------------------------------------------------------------- -----------
RETAIL STORES/CATALOG--0.1%
-------------------------------------------------------------------
8,000 Rinascente 46,458
------------------------------------------------------------------- -----------
REAL ESTATE--0.0%
-------------------------------------------------------------------
900 Risanamento Di Napoli 15,399
------------------------------------------------------------------- -----------
TEXTILE PRODUCTS--0.2%
-------------------------------------------------------------------
10,000 Benetton Group SPA 108,027
------------------------------------------------------------------- -----------
TIRE & RUBBER--0.2%
-------------------------------------------------------------------
85,000 Pirelli SPA 121,015
------------------------------------------------------------------- -----------
TRANSPORTATION & SHIPPING--0.0%
-------------------------------------------------------------------
30,000 Alitalia 17,422
------------------------------------------------------------------- -----------
TELECOMMUNICATIONS--1.5%
-------------------------------------------------------------------
360,000 Telecom Italia SPA 958,381
-------------------------------------------------------------------
12,000 Sirti 87,521
------------------------------------------------------------------- -----------
Total 1,045,902
------------------------------------------------------------------- -----------
TOTAL ITALY 5,356,986
------------------------------------------------------------------- -----------
JAPAN--30.7%
-------------------------------------------------------------------
ALUMINUM--0.1%
-------------------------------------------------------------------
8,000 Nipon Light Metal 44,792
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
JAPAN--CONTINUED
-------------------------------------------------------------------
APPLIANCES & HOUSEHOLD PRODUCTS--1.2%
-------------------------------------------------------------------
23,000 Matsushita Electric Industrial $ 320,778
-------------------------------------------------------------------
23,000 Sanyo Electric Co. 116,921
-------------------------------------------------------------------
15,000 Sharp Corp. 221,331
-------------------------------------------------------------------
4,000 Sony Corporation 185,554
------------------------------------------------------------------- -----------
Total 844,584
------------------------------------------------------------------- -----------
AUTOMOTIVE--1.5%
-------------------------------------------------------------------
12,000 Honda Motor 187,980
-------------------------------------------------------------------
30,000 Nissan Motors 214,054
-------------------------------------------------------------------
36,000 Toyota Motor Co. 691,280
------------------------------------------------------------------- -----------
Total 1,093,314
------------------------------------------------------------------- -----------
BANKING--6.9%
-------------------------------------------------------------------
31,000 Asahi Bank 369,693
-------------------------------------------------------------------
23,000 Bank of Tokyo 357,970
-------------------------------------------------------------------
16,000 Chiba Bank 141,167
-------------------------------------------------------------------
36,000 Dai-ichi Kangyo Bank 676,727
-------------------------------------------------------------------
39,000 Fuji Bank 851,366
-------------------------------------------------------------------
26,000 Industrial Bank of Japan 701,588
-------------------------------------------------------------------
9,000 Joyo Bank 71,402
-------------------------------------------------------------------
39,000 Sakura Bank 488,747
-------------------------------------------------------------------
16,000 Shizuoka Bank 192,426
-------------------------------------------------------------------
39,000 Sumitomo Bank Ltd. 760,711
-------------------------------------------------------------------
24,000 Tokai Bank 288,640
------------------------------------------------------------------- -----------
Total 4,900,437
------------------------------------------------------------------- -----------
BEVERAGES & TOBACCO--0.4%
-------------------------------------------------------------------
8,000 Asahi Breweries Ltd. 86,511
-------------------------------------------------------------------
16,000 Kirin Brewery Company 176,256
------------------------------------------------------------------- -----------
Total 262,767
------------------------------------------------------------------- -----------
CHEMICALS--1.1%
-------------------------------------------------------------------
23,000 Asahi Chemical Industry 162,946
-------------------------------------------------------------------
23,200 Mitsubishi Chemical 110,904
-------------------------------------------------------------------
8,000 Shin-Etsu Chemical 137,447
-------------------------------------------------------------------
31,000 Sumitomo Chemical Co. 149,130
-------------------------------------------------------------------
16,000 Takeda Chemical Industries 198,895
------------------------------------------------------------------- -----------
Total 759,322
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
JAPAN--CONTINUED
-------------------------------------------------------------------
CONSTRUCTION--1.2%
-------------------------------------------------------------------
8,000 Aoki Corporation $ 56,192
-------------------------------------------------------------------
8,000 Daiwa House Industry 122,086
-------------------------------------------------------------------
16,000 Kumagai Gumi Co. Ltd. 92,979
-------------------------------------------------------------------
13,000 Mitsui Fudosan 148,464
-------------------------------------------------------------------
8,000 Penta-Ocean Construction Co. Ltd. 75,434
-------------------------------------------------------------------
8,000 Sekisui House Ltd. 100,256
-------------------------------------------------------------------
11,000 Shimizu Construction 112,282
-------------------------------------------------------------------
8,000 Sumitomo Cement 43,983
-------------------------------------------------------------------
16,000 Taisei Construction 113,354
------------------------------------------------------------------- -----------
Total 865,030
------------------------------------------------------------------- -----------
DATA PROCESSING--0.3%
-------------------------------------------------------------------
25,000 Fujitsu Ltd. 216,530
------------------------------------------------------------------- -----------
ELECTRIC UTILITY--0.8%
-------------------------------------------------------------------
5,100 Kansai Electric Power, Inc. 111,848
-------------------------------------------------------------------
17,100 Tokyo Electric Power 447,604
------------------------------------------------------------------- -----------
Total 559,452
------------------------------------------------------------------- -----------
ELECTRICAL & ELECTRONIC--0.4%
-------------------------------------------------------------------
28,000 Mitsubishi Electric 172,901
-------------------------------------------------------------------
2,000 Rohm Company 72,160
-------------------------------------------------------------------
1,000 Advantest 27,590
------------------------------------------------------------------- -----------
Total 272,651
------------------------------------------------------------------- -----------
ELECTRONIC COMPONENTS/INSTRUMENTS--1.1%
-------------------------------------------------------------------
4,500 Fanuc Co. Ltd. 186,464
-------------------------------------------------------------------
47,000 Hitachi Ltd. 405,652
-------------------------------------------------------------------
21,000 NEC Corp. 197,378
------------------------------------------------------------------- -----------
Total 789,494
------------------------------------------------------------------- -----------
ENERGY--0.3%
-------------------------------------------------------------------
20,000 Energy Corp. 73,373
-------------------------------------------------------------------
23,000 Nippon Oil Company 148,069
------------------------------------------------------------------- -----------
Total 221,442
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
JAPAN--CONTINUED
-------------------------------------------------------------------
ENGINEERING--0.5%
-------------------------------------------------------------------
8,000 Hazama Guhi $ 47,621
-------------------------------------------------------------------
16,000 Kajima Corp. 148,120
-------------------------------------------------------------------
16,000 Obayashi Gumi 130,171
------------------------------------------------------------------- -----------
Total 325,912
------------------------------------------------------------------- -----------
ENTERTAINMENT--0.1%
-------------------------------------------------------------------
4,000 Tokyo Dome Corp. 73,575
------------------------------------------------------------------- -----------
FINANCIAL SERVICES--1.6%
-------------------------------------------------------------------
16,000 Daiwa Securities Ltd. 208,597
-------------------------------------------------------------------
15,000 Mitsubishi Trust & Banking Co. 216,783
-------------------------------------------------------------------
23,000 Nomura Securities Co. 450,949
-------------------------------------------------------------------
16,000 Yamaichi Securities Ltd. 120,954
-------------------------------------------------------------------
16,000 Yasuda Trust and Banking 124,026
------------------------------------------------------------------- -----------
Total 1,121,309
------------------------------------------------------------------- -----------
FOOD & HOUSEHOLD PRODUCTS--0.4%
-------------------------------------------------------------------
16,000 Kao Corporation 176,256
-------------------------------------------------------------------
8,000 Nippon Meat Packers, Inc. 105,916
------------------------------------------------------------------- -----------
Total 282,172
------------------------------------------------------------------- -----------
FOREST PRODUCTS--0.5%
-------------------------------------------------------------------
3,000 Daishowa Seishi 16,372
-------------------------------------------------------------------
16,000 Nippon Paper Industries 102,520
-------------------------------------------------------------------
16,000 OJI Paper 154,588
-------------------------------------------------------------------
3,000 Sumitomo Forestry Co. Ltd. 50,633
------------------------------------------------------------------- -----------
Total 324,113
------------------------------------------------------------------- -----------
GAS & ELECTRIC UTILITY--0.2%
-------------------------------------------------------------------
47,000 Osaka Gas Co. Ltd. 169,101
------------------------------------------------------------------- -----------
GAS UTILITY--0.3%
-------------------------------------------------------------------
47,000 Tokyo Gas Ltd. 187,626
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
JAPAN--CONTINUED
-------------------------------------------------------------------
HEALTH & PERSONAL CARE--0.8%
-------------------------------------------------------------------
8,000 Chugai Pharmaceutical Ltd. $ 77,779
-------------------------------------------------------------------
8,000 Kyowa Kogyo Co. Ltd. 76,728
-------------------------------------------------------------------
2,000 Nochida Pharmaceutical 37,192
-------------------------------------------------------------------
8,000 Sankyo Co. 190,809
-------------------------------------------------------------------
3,000 Shiseido Co. Ltd. 32,442
-------------------------------------------------------------------
8,000 Yamanouchi Pharmaceutical Co. Ltd. 164,128
------------------------------------------------------------------- -----------
Total 579,078
------------------------------------------------------------------- -----------
INDUSTRIAL GOODS & SERVICES--0.9%
-------------------------------------------------------------------
8,000 Bridgestone Corporation 112,383
-------------------------------------------------------------------
16,000 Mitsui Engineering & Shipbuilding 46,247
-------------------------------------------------------------------
8,000 MGK Insulators Ltd. 81,660
-------------------------------------------------------------------
8,000 Nippon Denso Ltd. 144,724
-------------------------------------------------------------------
10,000 Sumitomo Electric Industries 128,352
-------------------------------------------------------------------
8,000 Toto 139,873
------------------------------------------------------------------- -----------
Total 653,239
------------------------------------------------------------------- -----------
INSURANCE--0.4%
-------------------------------------------------------------------
8,000 Nippon Fire & Marine Insurance 50,370
-------------------------------------------------------------------
23,000 Tokio Marine Fire 260,342
------------------------------------------------------------------- -----------
Total 310,712
------------------------------------------------------------------- -----------
MACHINERY & EQUIPMENT--1.4%
-------------------------------------------------------------------
3,000 Chiyoda Chemical Engineering 37,293
-------------------------------------------------------------------
8,000 Daikin Industries 69,128
-------------------------------------------------------------------
5,000 Ebara 79,841
-------------------------------------------------------------------
16,000 Komatsu 141,490
-------------------------------------------------------------------
23,000 Kubota Corporation 159,459
-------------------------------------------------------------------
62,000 Mitsubishi Heavy Industries 421,074
-------------------------------------------------------------------
3,000 Tokyo Electron Ltd. 80,043
------------------------------------------------------------------- -----------
Total 988,328
------------------------------------------------------------------- -----------
MANUFACTURING--CONSUMER GOODS--0.7%
-------------------------------------------------------------------
14,000 Canon 207,991
-------------------------------------------------------------------
5,000 Casio Computer 54,575
-------------------------------------------------------------------
8,000 Fuji Photo Film Ltd. 174,639
-------------------------------------------------------------------
1,900 Sega Enterprise 97,739
------------------------------------------------------------------- -----------
Total 534,944
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
JAPAN--CONTINUED
-------------------------------------------------------------------
MISC. MATERIALS & COMMODITIES--0.4%
-------------------------------------------------------------------
23,000 Asahi Glass Co. $ 269,639
------------------------------------------------------------------- -----------
MERCHANDISING--1.4%
-------------------------------------------------------------------
6,000 Yokado 277,118
-------------------------------------------------------------------
8,000 Jusco Ltd. 152,001
-------------------------------------------------------------------
8,000 Marui 120,469
-------------------------------------------------------------------
16,000 Mitsukoshi Ltd. 144,077
-------------------------------------------------------------------
4,000 Seven-Eleven Japan Ltd. 297,533
------------------------------------------------------------------- -----------
Total 991,198
------------------------------------------------------------------- -----------
METALS & MINING--1.4%
-------------------------------------------------------------------
13,000 Furukawa Electric 80,407
-------------------------------------------------------------------
40,000 Kawasaki Steel Corporation 155,639
-------------------------------------------------------------------
47,000 Kobe Steel 142,026
-------------------------------------------------------------------
16,000 Mitsubishi Material Corp. 74,545
-------------------------------------------------------------------
45,000 Nippon Kokan 126,886
-------------------------------------------------------------------
59,000 Nippon Steel Corporation 220,027
-------------------------------------------------------------------
54,000 Sumitomo Metal Industries 168,636
-------------------------------------------------------------------
7,000 Sumitomo Metal & Mining 56,596
------------------------------------------------------------------- -----------
Total 1,024,762
------------------------------------------------------------------- -----------
OFFICE EQUIPMENT--0.4%
-------------------------------------------------------------------
16,000 Dai Nippon Printing Ltd. 257,107
------------------------------------------------------------------- -----------
PAPER PRODUCTS--0.1%
-------------------------------------------------------------------
16,000 UBE Industries 65,813
------------------------------------------------------------------- -----------
RETAIL STORES/CATALOG--0.0%
-------------------------------------------------------------------
1,000 Adyama Trading Co. 20,415
------------------------------------------------------------------- -----------
REAL ESTATE--0.3%
-------------------------------------------------------------------
17,000 Mitsubishi Estate Co. 195,863
------------------------------------------------------------------- -----------
SERVICES--0.4%
-------------------------------------------------------------------
2,000 Secom Co. Ltd. 118,245
-------------------------------------------------------------------
11,000 Toppan Printing 146,746
------------------------------------------------------------------- -----------
Total 264,991
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
JAPAN--CONTINUED
-------------------------------------------------------------------
TEXTILE PRODUCTS--0.5%
-------------------------------------------------------------------
16,000 Shon Denko $ 52,230
-------------------------------------------------------------------
16,000 Teijin 77,456
-------------------------------------------------------------------
23,000 Toray 146,210
-------------------------------------------------------------------
16,000 Toyobo 59,830
------------------------------------------------------------------- -----------
Total 335,726
------------------------------------------------------------------- -----------
TRANSPORTATION & SHIPPING--1.7%
-------------------------------------------------------------------
16,000 Ajinomoto Co., Inc. 187,575
-------------------------------------------------------------------
16,000 Hankyu Corp. 88,775
-------------------------------------------------------------------
31,000 Japan Air Lines 198,005
-------------------------------------------------------------------
23,000 Kinki Nippon Railway 186,656
-------------------------------------------------------------------
16,000 Nippon Express Co. 154,588
-------------------------------------------------------------------
23,000 Nippon Yusen 132,960
-------------------------------------------------------------------
16,000 Odakyu Railway 121,277
-------------------------------------------------------------------
16,000 Tobu Railway 101,873
-------------------------------------------------------------------
16,000 Tokyo Corp. 111,575
------------------------------------------------------------------- -----------
Total 1,283,284
------------------------------------------------------------------- -----------
WHOLESALE & INTERNATIONAL TRADE--1.0%
-------------------------------------------------------------------
23,000 Marubeni Corporation 116,224
-------------------------------------------------------------------
22,000 Mitsubishi Corporation 255,693
-------------------------------------------------------------------
23,000 Mitsui & Co. 180,147
-------------------------------------------------------------------
16,000 Sumitomo Corporation 154,749
------------------------------------------------------------------- -----------
Total 706,813
------------------------------------------------------------------- -----------
TOTAL JAPAN 21,795,535
------------------------------------------------------------------- -----------
MEXICO--2.3%
-------------------------------------------------------------------
BANKING--0.1%
-------------------------------------------------------------------
850 Grupo Financiero Sa de Banocci 1,475
-------------------------------------------------------------------
7,550 Grupo Financiero Serfin 8,682
-------------------------------------------------------------------
27,300 Grupo Finan Banamex 50,302
------------------------------------------------------------------- -----------
Total 60,459
------------------------------------------------------------------- -----------
BEVERAGES & TOBACCO--0.1%
-------------------------------------------------------------------
3,850 Coca-Cola Femsa SA 6,427
-------------------------------------------------------------------
24,200 Fomento Economico 44,209
-------------------------------------------------------------------
1,400 Grupo Modelo SA 19,843
------------------------------------------------------------------- -----------
Total 70,479
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
MEXICO--CONTINUED
-------------------------------------------------------------------
BUILDING PRODUCTS--0.2%
-------------------------------------------------------------------
7,750 Apasco S.A. de C.V. $ 26,485
-------------------------------------------------------------------
5,700 Cementos de Mexico 17,953
-------------------------------------------------------------------
19,350 Cementos de Mexico SA 66,431
-------------------------------------------------------------------
4,900 Cementos de Mexico CPO 15,897
-------------------------------------------------------------------
775 Tubos de Acero De Mexico 2,173
-------------------------------------------------------------------
4,900 Tomex SA 17,015
------------------------------------------------------------------- -----------
Total 145,954
------------------------------------------------------------------- -----------
CONSTRUCTION--0.0%
-------------------------------------------------------------------
450 Grupo de DeSarrollo 2,197
------------------------------------------------------------------- -----------
DIVERSIFIED--0.3%
-------------------------------------------------------------------
5,750 Grupo Industrial Alfa 46,182
-------------------------------------------------------------------
5,750 Grupo Sidek SA 6,375
-------------------------------------------------------------------
30,500 Grupo Carso 158,748
------------------------------------------------------------------- -----------
Total 211,305
------------------------------------------------------------------- -----------
ENGINEERING--0.0%
-------------------------------------------------------------------
4,800 Grupo Tribasa SA 23,585
------------------------------------------------------------------- -----------
FINANCIAL SERVICES--0.0%
-------------------------------------------------------------------
650 Grupo Financiero Banorth 972
-------------------------------------------------------------------
68,690 Grupo Financiero Bancomer SA de C.V. 23,258
------------------------------------------------------------------- -----------
Total 24,230
------------------------------------------------------------------- -----------
FOOD & HOUSEHOLD PRODUCTS--0.1%
-------------------------------------------------------------------
3,650 Herdez S.A. de C.V. 1,392
-------------------------------------------------------------------
5,950 Kimberly Clark de Mexico 52,474
------------------------------------------------------------------- -----------
Total 53,866
------------------------------------------------------------------- -----------
HOTELS & LODGING--0.0%
-------------------------------------------------------------------
11,747 Grupo Situr SA 8,417
------------------------------------------------------------------- -----------
INDUSTRIAL GOODS & SERVICES--0.0%
-------------------------------------------------------------------
2,800 Desc S.A. de C.V. 5,732
-------------------------------------------------------------------
3,800 Grupo Industrial 13,614
-------------------------------------------------------------------
4,600 Industria Penoles 10,070
------------------------------------------------------------------- -----------
Total 29,416
------------------------------------------------------------------- -----------
INDUSTRIAL HOLDING COMPANY--0.0%
-------------------------------------------------------------------
13,900 Grupo Industrial Maseca S.A. C.V. 11,383
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
MEXICO--CONTINUED
-------------------------------------------------------------------
MACHINERY & EQUIPMENT--0.1%
-------------------------------------------------------------------
4,625 Expresas Ica Sociedad Controladora $ 39,332
------------------------------------------------------------------- -----------
MISCELLANEOUS MATERIALS & COMMODITIES--0.0%
-------------------------------------------------------------------
2,300 Consorcio G Grupo Dina S.A. de C.V. 2,680
------------------------------------------------------------------- -----------
MERCHANDISING--0.3%
-------------------------------------------------------------------
101,800 Cifra S.A. de C.V. 122,885
-------------------------------------------------------------------
20,500 Empresas la Modern 66,182
------------------------------------------------------------------- -----------
Total 189,067
------------------------------------------------------------------- -----------
RETAIL STORES/CATALOGS--0.0%
-------------------------------------------------------------------
35,384 Grupo Gigante SA 8,359
------------------------------------------------------------------- -----------
GENERAL MERCHANDISE--0.0%
-------------------------------------------------------------------
16,331 Controladora Comercial Mexicana 10,287
------------------------------------------------------------------- -----------
TRANSPORTATION & SHIPPING--0.1%
-------------------------------------------------------------------
2,900 Aerovias de Mexico SA 247
-------------------------------------------------------------------
650 Transportation Maritima Mexicana 3,767
-------------------------------------------------------------------
13,400 Vitro Mexican NPV Ords 43,683
------------------------------------------------------------------- -----------
Total 47,697
------------------------------------------------------------------- -----------
TELECOMMUNICATIONS--1.0%
-------------------------------------------------------------------
10,964 Grupo Televisa S.A. CPO 111,542
-------------------------------------------------------------------
384,300 Telefonos de Mexico S.A. de C.V. 606,322
------------------------------------------------------------------- -----------
Total 717,864
------------------------------------------------------------------- -----------
TOTAL MEXICO 1,656,577
------------------------------------------------------------------- -----------
NETHERLANDS--6.8%
-------------------------------------------------------------------
APPLIANCES & HOUSEHOLD PRODUCTS--0.4%
-------------------------------------------------------------------
9,600 Philips Electronics N.V. 303,862
------------------------------------------------------------------- -----------
BANKING--0.4%
-------------------------------------------------------------------
8,900 ABN Amro Holdings 304,745
------------------------------------------------------------------- -----------
BEVERAGES & TOBACCO--0.2%
-------------------------------------------------------------------
1,150 Heineken N.V. 171,649
------------------------------------------------------------------- -----------
BROADCASTING & PUBLISHING--0.5%
-------------------------------------------------------------------
19,000 Elsevier Nlgi Ords 183,325
-------------------------------------------------------------------
2,000 Wolters Klumer CVA 148,495
------------------------------------------------------------------- -----------
Total 331,820
------------------------------------------------------------------- -----------
CHEMICALS--0.4%
-------------------------------------------------------------------
2,200 Akzo NV NLG20 Ords 250,065
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
NETHERLANDS--CONTINUED
-------------------------------------------------------------------
ENERGY--2.4%
-------------------------------------------------------------------
15,400 Royal Dutch Petroleum $ 1,723,275
------------------------------------------------------------------- -----------
FOOD PRODUCTS & SERVICES--0.8%
-------------------------------------------------------------------
4,600 Unilever NV 545,056
------------------------------------------------------------------- -----------
FOREST PRODUCTS--0.1%
-------------------------------------------------------------------
3,000 NV Koninklijke 93,192
------------------------------------------------------------------- -----------
INSURANCE--0.5%
-------------------------------------------------------------------
7,900 Internationale Nederlanden Groep 370,432
------------------------------------------------------------------- -----------
MACHINERY & EQUIPMENT--0.0%
-------------------------------------------------------------------
850 Verenigde Machinefabrieken Stork 22,804
------------------------------------------------------------------- -----------
MERCHANDISING--0.2%
-------------------------------------------------------------------
3,500 Koninklijke Ahold NV 106,871
------------------------------------------------------------------- -----------
METALS--0.1%
-------------------------------------------------------------------
900 Hoogovens and Staalf 40,454
------------------------------------------------------------------- -----------
SERVICES--0.7%
-------------------------------------------------------------------
14,300 Koninklijke PTT Nederland NV 471,137
------------------------------------------------------------------- -----------
TRANSPORTATION & SHIPPING--0.1%
-------------------------------------------------------------------
2,400 KLM Royal Dutch Air 64,529
-------------------------------------------------------------------
700 Nedlloyd Groep NV 21,415
------------------------------------------------------------------- -----------
Total 85,944
------------------------------------------------------------------- -----------
TOTAL NETHERLANDS 4,821,306
------------------------------------------------------------------- -----------
PORTUGAL--2.4%
-------------------------------------------------------------------
BANKING--1.5%
-------------------------------------------------------------------
21,500 Banco Espirito Santo 340,235
-------------------------------------------------------------------
33,000 Banco Commercial Portuguese 391,035
-------------------------------------------------------------------
11,900 Banco Portugues Investmento 187,177
-------------------------------------------------------------------
10,000 Banco Portugues do Atlantico 171,394
------------------------------------------------------------------- -----------
Total 1,089,841
------------------------------------------------------------------- -----------
BEVERAGES & TOBACCO--0.1%
-------------------------------------------------------------------
3,800 Unicer 50,194
------------------------------------------------------------------- -----------
CHEMICALS--0.0%
-------------------------------------------------------------------
500 Corporacao Industrial do Norte 14,325
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
PORTUGAL--CONTINUED
-------------------------------------------------------------------
ENGINEERING--0.1%
-------------------------------------------------------------------
270 Soares da Costa $ 3,658
-------------------------------------------------------------------
900 Soares da Costa SA 12,634
-------------------------------------------------------------------
950 Engil Soc Construcao Civil 13,639
-------------------------------------------------------------------
900 Sociedade de Construcoes Soares da Cos 18,291
-------------------------------------------------------------------
800 Sonague Sociedade Gestora de Parti 6,228
------------------------------------------------------------------- -----------
Total 54,450
------------------------------------------------------------------- -----------
FINANCIAL SERVICES--0.0%
-------------------------------------------------------------------
2,100 Banco Internacional do Furchal SA 19,403
------------------------------------------------------------------- -----------
FOREST PRODUCTS--0.1%
-------------------------------------------------------------------
4,700 Corticeira Anorim 74,977
------------------------------------------------------------------- -----------
INDUSTRIAL HOLDING COMPANY--0.4%
-------------------------------------------------------------------
13,000 Sonae 275,404
------------------------------------------------------------------- -----------
INSURANCE--0.0%
-------------------------------------------------------------------
3,300 Companhia de Seguros 22,342
------------------------------------------------------------------- -----------
REAL ESTATE--0.0%
-------------------------------------------------------------------
800 Mundicenter 19,904
------------------------------------------------------------------- -----------
TRANSPORTATION & SHIPPING--0.1%
-------------------------------------------------------------------
600 Inapa Inv Part Ges 13,373
-------------------------------------------------------------------
6,900 Estado Nivais de Lisboa 32,449
------------------------------------------------------------------- -----------
Total 45,822
------------------------------------------------------------------- -----------
TELECOMMUNICATIONS--0.1%
-------------------------------------------------------------------
1,600 Radio Marconi 47,985
------------------------------------------------------------------- -----------
TOTAL PORTUGAL 1,714,647
------------------------------------------------------------------- -----------
SPAIN--4.1%
-------------------------------------------------------------------
AUTOMOTIVE--0.1%
-------------------------------------------------------------------
1,450 Fasa-Renault 46,740
------------------------------------------------------------------- -----------
BANKING--1.3%
-------------------------------------------------------------------
3,133 Banco Espana Credito (Banesto) 20,317
-------------------------------------------------------------------
4,400 Corporacion Bancaria de Espana 148,173
-------------------------------------------------------------------
11,867 Banco de Santander SA 424,831
-------------------------------------------------------------------
5,600 Banco Central SA 129,545
-------------------------------------------------------------------
8,700 Banco Bilbao Vizcaya 218,084
------------------------------------------------------------------- -----------
Total 940,950
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
SPAIN--CONTINUED
-------------------------------------------------------------------
BEVERAGES & TOBACCO--0.0%
-------------------------------------------------------------------
1,350 Tabaclera $ 38,397
------------------------------------------------------------------- -----------
BUILDING PRODUCTS--0.1%
-------------------------------------------------------------------
400 Portland Valderrivassa 27,274
-------------------------------------------------------------------
1,500 Uralita 13,653
------------------------------------------------------------------- -----------
Total 40,927
------------------------------------------------------------------- -----------
BUSINESS SERVICES--0.1%
-------------------------------------------------------------------
7,300 Autopista 57,582
------------------------------------------------------------------- -----------
CHEMICALS--0.0%
-------------------------------------------------------------------
3,700 Ercros SA 3,985
------------------------------------------------------------------- -----------
CONSTRUCTION--0.0%
-------------------------------------------------------------------
2,700 Dragados Y Contrucciones 37,168
------------------------------------------------------------------- -----------
ENERGY--0.5%
-------------------------------------------------------------------
11,500 Repsol SA 322,725
------------------------------------------------------------------- -----------
FOOD & HOUSEHOLD PRODUCTS & SERVICES--0.1%
-------------------------------------------------------------------
2,100 Ebro Agricolas Compania de Alime 22,060
-------------------------------------------------------------------
1,050 Viscofan Envolturas Celulosicas 15,131
------------------------------------------------------------------- -----------
Total 37,191
------------------------------------------------------------------- -----------
INDUSTRIAL HOLDING COMPANY--0.0%
-------------------------------------------------------------------
750 Alba (Corp Finan) 30,206
------------------------------------------------------------------- -----------
INSURANCE--0.1%
-------------------------------------------------------------------
1,000 Corporacion Mapfre SA 38,454
------------------------------------------------------------------- -----------
MACHINERY & EQUIPMENT--0.0%
-------------------------------------------------------------------
325 Zardoya Otis SA 30,196
------------------------------------------------------------------- -----------
METALS--0.1%
-------------------------------------------------------------------
540 Acerinox SA 56,070
------------------------------------------------------------------- -----------
REAL ESTATE--0.0%
-------------------------------------------------------------------
150 Immobiliaria Metrolpolitana 4,460
-------------------------------------------------------------------
1,650 Vallehermoso SA 25,968
------------------------------------------------------------------- -----------
Total 30,428
------------------------------------------------------------------- -----------
TELECOMMUNICATIONS--0.6%
-------------------------------------------------------------------
34,000 Telefonica de Espana 420,339
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
IN U.S.
SHARES DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------------------------------
SPAIN--CONTINUED
-------------------------------------------------------------------
GAS & ELECTRIC UTILITIES--1.1%
-------------------------------------------------------------------
1,350 Gas Naturale $ 110,584
-------------------------------------------------------------------
550 Fomento Construccion Es Y Contra 51,352
-------------------------------------------------------------------
9,500 Empresa Nacional Electricidad Es 388,370
-------------------------------------------------------------------
32,300 Iberdrola SA 191,577
-------------------------------------------------------------------
11,300 Union Electrica Fenosa 40,969
------------------------------------------------------------------- -----------
Total 782,852
------------------------------------------------------------------- -----------
TOTAL SPAIN 2,914,210
------------------------------------------------------------------- -----------
THAILAND--0.0%
-------------------------------------------------------------------
FINANCIAL SERVICES--0.0%
-------------------------------------------------------------------
3,900 National Finance & Security 16,815
------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $67,610,475) 62,736,771
------------------------------------------------------------------- -----------
PREFERRED STOCKS--0.2%
-------------------------------------------------------------------------------------
AUSTRALIA--0.2%
-------------------------------------------------------------------
BROADCASTING & PUBLISHING--0.2%
-------------------------------------------------------------------
47,804 News Corp. Ltd. 167,226
------------------------------------------------------------------- -----------
TOTAL PREFERRED STOCKS (IDENTIFIED COST, $68,129) 167,226
------------------------------------------------------------------- -----------
WARRANTS AND RIGHTS--0.1%
-------------------------------------------------------------------------------------
FRANCE--0.0%
-------------------------------------------------------------------
125 Eurafrance Rights 0
------------------------------------------------------------------- -----------
ITALY--0.0%
-------------------------------------------------------------------
5,500 Credito Italiano 0
-------------------------------------------------------------------
2,300 R.A.S. SPA 8,979
------------------------------------------------------------------- -----------
TOTAL ITALY 8,979
------------------------------------------------------------------- -----------
HONG KONG--0.0%
-------------------------------------------------------------------
800 Applied International Warrants 5
------------------------------------------------------------------- -----------
THAILAND--0.1%
-------------------------------------------------------------------
1,300 National Finance & Security 1,090
-------------------------------------------------------------------
2,400 CMIC Finance & Security Rights (convertible to ordinary shares) 6,611
-------------------------------------------------------------------
600 CMIC Finance & Security Rights (convertible to units) 0
-------------------------------------------------------------------
3,600 Dhana Siam Financial & Security 25,582
------------------------------------------------------------------- -----------
TOTAL THAILAND 33,283
------------------------------------------------------------------- -----------
TOTAL WARRANTS AND RIGHTS (IDENTIFIED COST, $0) 42,267
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
PRINCIPAL IN U.S.
AMOUNT DOLLARS
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS--11.1%
-------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--11.1%
-------------------------------------------------------------------
$2,900,000 Federal Home Loan Bank, VRDN, 2/7/95 $ 2,896,916
-------------------------------------------------------------------
5,000,000 Federal National Mortgage Association, VRDN, 2/17/95 4,986,966
------------------------------------------------------------------- -----------
TOTAL U.S. GOVERNMENT OBLIGATIONS, AT AMORTIZED COST 7,883,882
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $75,562,486) $70,830,146+
------------------------------------------------------------------- -----------
</TABLE>
+ The cost for federal tax purposes amounts to $75,562,486. The net unrealized
depreciation of investments on a federal tax basis amounts to $4,732,340,
which is comprised of $874,801 appreciation and $5,607,141 depreciation at
January 31, 1995.
Note: The categories of investments are shown as a percentage of net assets
($71,122,013) at January 31, 1995.
The following abbreviation is used in this portfolio:
VRDN--Variable Rate Demand Notes
(See Notes which are an integral part of the financial statements)
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
--------------------------------------------------------------------------------
Investments in securities, at amortized cost and value
(identified and tax cost, $75,562,486) $70,830,146
--------------------------------------------------------------------------------
Cash 180,702
--------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts 113,023
--------------------------------------------------------------------------------
Dividends and interest receivable 42,277
--------------------------------------------------------------------------------
Realized gain on forward foreign currency exchange contracts 27,619
--------------------------------------------------------------------------------
Receivable for Fund shares sold 2,500
--------------------------------------------------------------------------------
Other receivables 10,298
-------------------------------------------------------------------------------- -----------
Total assets 71,206,565
--------------------------------------------------------------------------------
LIABILITIES:
--------------------------------------------------------------------------------
Unrealized depreciation of foreign currency $48,165
----------------------------------------------------------------------
Accrued expenses 36,387
---------------------------------------------------------------------- -------
Total liabilities 84,552
-------------------------------------------------------------------------------- -----------
NET ASSETS for 7,894,634 shares of beneficial interest outstanding $71,122,013
-------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
Paid-in capital $77,080,842
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments and foreign currency
transactions (4,618,959)
--------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments and foreign currency
transactions (1,384,774)
--------------------------------------------------------------------------------
Undistributed net investment income 44,904
-------------------------------------------------------------------------------- -----------
Total net assets $71,122,013
-------------------------------------------------------------------------------- -----------
NET ASSET VALUE, and Redemption Proceeds Per Share:
($71,122,013 / 7,894,634 shares of beneficial interest outstanding) $9.01
-------------------------------------------------------------------------------- -----------
COMPUTATION OF OFFERING PRICE:
--------------------------------------------------------------------------------
Offering Price Per Share (100/95.5 of $9.01) $9.43*
-------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the financial statements)
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995*
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
---------------------------------------------------------------------------------
Interest income $ 205,625
---------------------------------------------------------------------------------
Dividend income (net of foreign taxes withheld of $39,445) 256,416
--------------------------------------------------------------------------------- -----------
Total investment income 462,041
---------------------------------------------------------------------------------
EXPENSES:
---------------------------------------------------------------------------------
Investment advisory fee $252,811
---------------------------------------------------------------------
Administrative personnel and services fees 61,599
---------------------------------------------------------------------
Custodian fee 57,941
---------------------------------------------------------------------
Portfolio accounting and transfer and dividend disbursing agent
fees and expenses 28,793
---------------------------------------------------------------------
Legal fees 2,028
---------------------------------------------------------------------
Auditing fees 1,896
---------------------------------------------------------------------
Printing and postage 1,620
---------------------------------------------------------------------
Miscellaneous 10,449
--------------------------------------------------------------------- --------
Total expenses 417,137
--------------------------------------------------------------------------------- -----------
Net investment income 44,904
--------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
---------------------------------------------------------------------------------
Net realized loss on investments and foreign currency transactions
(identified cost basis) (1,384,774)
---------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments and
foreign currency transactions (4,618,959)
--------------------------------------------------------------------------------- -----------
Net realized and unrealized gain (loss) on investments (6,003,733)
--------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $(5,958,829)
--------------------------------------------------------------------------------- -----------
</TABLE>
* For the period from August 19, 1994 (date of initial public investment) to
January 31, 1995.
(See Notes which are an integral part of the financial statements)
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995*
------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
----------------------------------------------------------------------
OPERATIONS--
----------------------------------------------------------------------
Net investment income $ 44,904
----------------------------------------------------------------------
Net realized gain (loss) on investments and foreign currency
transactions
($1,384,774 net loss as computed for federal tax purposes) (1,384,774)
----------------------------------------------------------------------
Change in unrealized appreciation (depreciation) of investments and
foreign currency transactions (4,618,959)
----------
----------------------------------------------------------------------
Change in net assets resulting from operations (5,958,829)
----------
----------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS--
----------------------------------------------------------------------
Dividends to shareholders from net investment income --
----------
----------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
----------------------------------------------------------------------
Proceeds from sale of shares 77,823,275
----------------------------------------------------------------------
Cost of shares redeemed (742,433)
---------------------------------------------------------------------- ---------------
Change in net assets from Fund share transactions 77,080,842
---------------------------------------------------------------------- ---------------
Change in net assets 71,122,013
----------------------------------------------------------------------
NET ASSETS:
----------------------------------------------------------------------
Beginning of period --
---------------------------------------------------------------------- ---------------
End of period (including undistributed net investment income of
$44,904) $ 71,122,013
---------------------------------------------------------------------- ---------------
</TABLE>
* For the period from August 19, 1994 (date of initial public investment) to
January 31, 1995
(unaudited).
(See Notes which are an integral part of the financial statements)
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) ORGANIZATION
Fountain Square Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end, management investment
company. The Trust consists of ten portfolios. The financial statements included
herein are only those of Fountain Square International Equity Fund (the "Fund").
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale price
reported on national securities exchanges. Unlisted securities and short-term securities
are generally valued at the prices provided by an independent pricing service. Short-term
securities with remaining maturities of sixty days or less may be stated at amortized
cost, which approximates fair market value.
B. REPURCHASE AGREEMENTS--It is the policy of the Fund to require a custodian bank to take
possession, to have legally segregated in the Federal Reserve Book Entry System or to
have segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been established
by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's
collateral to ensure that the value of collateral at least equals the repurchase price to
be paid under the repurchase agreement transaction.
The Fund will only enter into repurchase agreements with banks and other recognized
financial institutions, such as brokers/dealers, which are deemed by the Fund's adviser
to be creditworthy pursuant to guidelines reviewed or established by the Board of
Trustees.
Risks may arise from the potential inability of counterparties to honor the terms of the
repurchase agreement. Accordingly, the Fund could receive less than the repurchase price
on the sale of collateral securities.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income and expenses are
accrued daily. Bond premium and discount, if applicable, are amortized as required by the
Internal Revenue Code, as amended (the "Code").
D. FOREIGN CURRENCY TRANSLATION--The accounting records of the Fund are maintained in U.S.
dollars. All assets and liabilities denominated in foreign currencies ("FC") are
translated into U.S. dollars based on the rate of exchange of such currencies against the
U.S. dollar on the date of valuation. Purchases and sales of securities, income and
expenses are translated at the rate of exchange quoted on the respective date that such
transactions are recorded. Differences between income and expense amounts recorded and
collected or paid are adjusted when reported by the custodian bank. The Fund does not
isolate that portion of the results of operations resulting from changes in foreign
exchange rates on investments from the fluctuations arising from changes in market prices
of securities held. Such fluctuations are included with the net realized and unrealized
gain or loss from investments.
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Reported net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of FCs, currency gains or losses realized between the trade
and settlement dates on securities transactions, the difference between the amount of
dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and liabilities other
than investments in securities at fiscal year end, resulting from changes in the exchange
rate.
E. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Code
applicable to regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary. However, federal taxes may be imposed on the Fund upon the disposition of
certain investments in passive foreign investment companies. Withholding taxes on foreign
dividends have been provided for in accordance with the Fund's understanding of the
applicable country's tax rules and rates.
F. FORWARD COMMITMENTS--The Fund may enter into forward commitments for the delayed delivery
of forward foreign currency exchange contracts which are based upon financial indices at
an exchange rate at a future date. Risks may arise upon entering these contracts from the
potential inability of counterparties to meet the terms of their contracts and from
unanticipated movements in foreign exchange rates. The forward foreign currency exchange
contracts are adjusted by the daily exchange rate of the underlying currency and any
gains or losses are recorded for financial statement purposes as unrealized until the
contract settlement date. For the period ended January 31, 1995, the Fund incurred
realized gains of $27,619 from forward foreign currency exchange contracts.
At January 31, 1995 the Fund had outstanding forward foreign currency exchange contracts
as set forth below.
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS IN EXCHANGE APPRECIATION
DATE TO DELIVER FOR (DEPRECIATION)
--------------- -------------- ------------ --------------
<S> <C> <C> <C>
4/28/95 19,269,000 $ 3,600,000 $(52,777)
French Franc
4/28/95 343,236,250 2,717,197 137,471
Spanish Peseta
4/28/95 1,006,465,600 10,220,000 28,329
Japanese Yen
------------
Net Unrealized Appreciation on Forward $113,023
Commitments
------------
G. FOREIGN CURRENCY COMMITMENTS--The Fund may enter into foreign currency commitments for
the delayed delivery of securities or foreign currency exchange transactions. Risks may
arise upon entering into these transactions from the potential inability of
counterparties to meet the terms of their commitments and from unanticipated movements in
security prices or foreign exchange rates. The foreign currency transactions are adjusted
by the daily exchange rate of the underlying currency and any gains or losses are
recorded for financial statement purposes as unrealized until the settlement date.
H. OPTION CONTRACTS--The Fund may write or purchase option contracts. A written option
obligates the Fund to deliver (a call), or to receive (a put), the contract amount of
foreign currency upon exercise by the holder of the option. The value of the option
contract is recorded as a liability and unrealized gain or loss is measured by the
difference between the current value and the premium received. The Fund had no written
options outstanding at January 31, 1995.
I. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or
delayed delivery transactions. The Fund records when-issued securities on the trade date
and maintains security positions such that sufficient liquid assets will be available to
make payment for
</TABLE>
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
the securities purchased. Securities purchased on a when-issued or delayed delivery basis
are marked to market daily and begin earning interest on the settlement date.
J. CONCENTRATION OF CREDIT RISK--The Fund invests in equity and fixed income securities of
non-U.S. issuers. Although the Fund maintains a diversified investment portfolio the
political or economic developments within a particular country or region may have an
adverse effect on the ability of domiciled issuers to meet their obligations.
Additionally, political or economic developments may have an effect on the liquidity and
volatility of portfolio securities and currency holdings.
K. DEFERRED EXPENSES--The costs incurred by the Fund with respect to registration of its
shares in its first fiscal year, excluding the initial expense of registering its shares,
have been deferred and are being amortized using the straight-line method not to exceed a
period of five years from the Fund's commencement date.
L. OTHER--Investment transactions are accounted for on the trade date.
</TABLE>
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995*
---------------------------------------------------------------------- ------------------
<S> <C>
Shares sold 7,973,333
----------------------------------------------------------------------
Shares redeemed (78,699)
----------
----------------------------------------------------------------------
Net change resulting from Fund share transactions 7,894,634
----------
----------------------------------------------------------------------
</TABLE>
* For the period from August 19, 1994 (date of initial public investment) to
January 31, 1995.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Fifth Third Bank, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
1.00 of 1% of the Fund's average daily net assets. Morgan Stanley Asset
Management, Inc. is the Fund's sub-adviser (the "Sub-Adviser"). The Adviser
compensates the Sub-Adviser at the annual rate of 0.50 of 1% of the Fund's
average daily net assets.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The FAS fee is based on the
level of average net assets of the Trust for the period. FAS may voluntarily
choose to waive a portion of its fee.
TRANSFER AND DIVIDEND DISBURSING AGENT, ACCOUNTING AND CUSTODY FEES--Fifth Third
Bank serves as transfer and dividend disbursing agent for the Fund for which it
receives a fee. Fifth Third Bank has subcontracted the execution of the transfer
and dividend disbursing agency services functions to a non-affiliated entity.
The fee is based on the level of the Fund's average net assets for the period,
plus out-of-pocket expenses.
Fifth Third Bank maintains the Fund's accounting records for which it receives a
fee. Fifth Third Bank has subcontracted the execution of the accounting services
function to a non-affiliated entity. The fee is based on the level of the Fund's
average net assets for the period, plus out-of-pocket expenses.
Fifth Third Bank is the Fund's custodian for which it receives a fee. The fee is
based on the level of the Fund's average net assets for the period, plus
out-of-pocket expenses.
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
FOUNTAIN SQUARE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended January 31, 1995, were as follows:
<TABLE>
<S> <C>
-------------------------------------------------------------------------------
PURCHASES $ 76,324,228
------------------------------------------------------------------------------- ------------
SALES $ 8,080,116
------------------------------------------------------------------------------- ------------
</TABLE>
February 28, 1995
[LOGO]
Fifth Third Bank
Investment Adviser
Federated Securities Corp. is the distributor of the Funds
350756854
007382 (2/95)
FOUNTAIN SQUARE FUNDS
EQUITY AND INCOME MUTUAL FUNDS
U.S. GOVERNMENT SECURITIES FUND
QUALITY BOND FUND
OHIO TAX FREE BOND FUND
QUALITY GROWTH FUND
MID CAP FUND
BALANCED FUND
[LOGO]
FOUNTAIN SQUARE FUNDS
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 1995
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present Semi-Annual Report to Shareholders of the Fountain
Square Equity and Income Funds for the period ended January 31, 1995.
This report includes complete financial information including Investment
Reviews, Portfolios of Investments, and Financial Statements for: Fountain
Square U.S. Government Securities Fund, Fountain Square Quality Bond Fund,
Fountain Square Ohio Tax Free Bond Fund, Fountain Square Quality Growth Fund,
Fountain Square Mid Cap Fund, and Fountain Square Balanced Fund, (collectively,
referred to as the "Funds").
Thank you for choosing the Funds to pursue your financial goals. Remember, you
have free exchange privileges among these Funds, so you can easily diversify
your investments as your goals change.*
We will continue to provide you with the highest level of service as we keep you
up to date on your investment. Of course, your questions and comments are always
invited.
Sincerely,
/S/ J. Christopher Donahue
J. Christopher Donahue
President
March 15, 1995
* Exchange Privileges may be modified or discontinued at any time.
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
FOUNTAIN SQUARE U.S. GOVERNMENT SECURITIES FUND
The investment objective of the Fountain Square U.S. Government Securities Fund
("Government Securities Fund") is to provide a high level of current income.
Capital growth is a secondary objective. The Government Securities Fund is
designed to meet the needs of conservative investors seeking high credit
quality. The current allocation of the Government Securities Fund's portfolio is
as follows:
--79.8% U.S. Treasury & Federal Agency Bonds
--16.4% Mortgage Backed Securities
--2.3% Cash equivalents
The average maturity of the Government Securities Fund is 3.3 years.
Over the past six months, the Government Securities Fund was structured to
pursue positive performance in a market that exhibited rapidly rising short-term
interest rates. Our expectation for the next six months is for interest rates to
become more stable, and we should be modifying our portfolio structure to
accommodate this. This essentially entails lengthening the maturity structure of
the securities in the Government Securities Fund.
FOUNTAIN SQUARE QUALITY BOND FUND
The investment objective of the Fountain Square Quality Bond Fund ("Quality Bond
Fund") is high current income. Capital growth is a secondary objective. The
Quality Bond Fund is designed to meet the needs of investors who require the
advantages of a diversified fixed-income portfolio, yet are comfortable with a
more aggressive approach than used in the Government Securities Fund. The
average maturity of the Quality Bond Fund is also longer. Presently it is 9.6
years.
The current portfolio allocation is as follows:
--42.4% U.S. Treasury & Federal Agency Bonds
--34.4% Mortgage Backed Securities
--18.4% Corporate Bonds
--4.9% Cash equivalents
Over the past six months, Fifth Third Bank has managed the Quality Bond Fund to
take advantage of the fact that short-term interest rates were rising much
faster than long-term interest rates. The average maturity of the portfolio was
initially shorter than the general market. In response to a rise in the thirty
year bond's yield to 8%, the average maturity was subsequently lengthened to a
level longer than the market.
With an expectation of a moderate slowdown in the economy during 1995, Fifth
Third Bank is comfortable maintaining an average maturity that is generally the
same as the general bond market. We continue to concentrate the Quality Bond
Fund's assets in high quality securities with the highest concentration in
Treasury and Government Agency securities.
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
The investment objective of the Fountain Square Ohio Tax Free Bond Fund ("Ohio
Tax Free Fund") is to provide current income exempt from federal income tax and
the personal income taxes imposed by the State of Ohio and Ohio municipalities.*
The Ohio Tax Free Fund pursues this objective by investing primarily in Ohio
municipal securities.
* Income may be subject to the federal alternative minimum tax.
--------------------------------------------------------------------------------
Over the past six months, the Ohio Tax Free Fund has maintained a strategy that
emphasizes longer term bonds, and generally has maintained an average portfolio
maturity of approximately seven years. Recently, the supply of municipal bonds
has declined due to improved economic conditions and strong demand by investors
for tax free income. This environment has supported bond prices. In the future,
as the federal government delegates more programs to local governments, the
supply of municipal bonds will increase. However, we anticipate this increased
supply of bonds to be of lower quality. Therefore, our strategy will continue to
stress careful selection of high-quality issues.
FOUNTAIN SQUARE QUALITY GROWTH FUND
The investment objective of the Fountain Square Quality Growth Fund ("Quality
Growth Fund") is to provide growth of capital. Income is a secondary objective.
The Quality Growth Fund pursues these objectives by investing in a diversified
portfolio of common stocks of high quality companies.
Compared to 1994, Fifth Third Bank expects 1995 to be characterized by greater
interest rate stability with corporate earnings growing at a slower pace. If
this happens, quality growth stocks should regain favor with investors. Thus
companies that can generate consistent and above-average earnings, should show
strong performance relative to stock market averages.
Relative to the Standard & Poor's 500 Stock Index* the Quality Growth Fund is
currently overweighted in the capital goods, transportation, technology and
energy sectors and underweighted in the consumer-related and interest sensitive
sectors. However, with greater stability in interest rates expected in the next
six months, we anticipate increasing our holdings of companies in the financial
and utilities sectors.
FOUNTAIN SQUARE MID CAP FUND
The investment objective of the Fountain Square Mid Cap Fund ("Mid Cap Fund") is
growth of capital. Income is a secondary objective. The Mid Cap Fund pursues
this objective by investing in medium-sized companies with capitalization
between $100 million and $3 billion. Market capitalization is defined as the
stock's market price times the number of shares outstanding.
Fifth Third Bank's stock selection process involves identifying companies that
have the ability to generate solid earnings over the long-term, especially
during those times when the economy begins to slow. Such companies may serve a
product niche, offer a unique service or have a competitive cost advantage. Many
of these companies also sell products or services that improve operating
efficiencies for their customers. Companies that export or have operations in
foreign markets are also favored.
Relative to the Standard & Poor's 500 Stock Index* the Mid Cap Fund is currently
overweighted in the capital goods, transportation, basic materials and
technology areas and underweighted in the consumer-related and interest
sensitive sectors.
FOUNTAIN SQUARE BALANCED FUND
The investment objective of the Fountain Square Balanced Fund ("Balanced Fund")
is to pursue capital appreciation and income.
The Balanced Fund utilizes the same strategy for equity and fixed income
securities selection, as employed by the Quality Growth Fund, Mid Cap Fund and
Quality Bond Fund. The Balanced Fund emphasizes equity exposure for growth
potential and bond exposure for income and an element of greater stability.
The targeted asset allocation is currently 70% equities and 30% fixed income.
* This index is unmanaged.
FOUNTAIN SQUARE U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------------------------------------------------------------- -----------
<C> <S> <C>
GOVERNMENT SECURITIES--79.8%
----------------------------------------------------------------------------------
GOVERNMENT AGENCIES--33.1%
-------------------------------------------------------------------
$ 387,000 Federal Farm Credit Bank, 6.56%, 12/23/1999 $ 366,810
-------------------------------------------------------------------
500,000 Federal Home Loan Bank, 7.69%, 12/16/1996 503,035
-------------------------------------------------------------------
400,000 Federal Home Loan Bank, 7.81%, 7/17/1996 402,924
-------------------------------------------------------------------
500,000 Federal Home Loan Mortgage Corp., Debenture, 6.16%,
(Callable 3/29/1996 @ 100), 3/29/2000 460,064
-------------------------------------------------------------------
1,800,000 Student Loan Marketing Association, Floating Rate Notes,
6.28%, 3/3/1997 1,804,752
-------------------------------------------------------------------
2,300,000 Student Loan Marketing Association, Floating Rate Notes,
6.31%, 10/30/1997 2,302,944
-------------------------------------------------------------------
1,050,000 Student Loan Marketing Association, Floating Rate Notes,
6.41%, 8/22/1996 1,054,084
-------------------------------------------------------------------
515,000 Tennessee Valley Authority, 6.25%, (Callable 8/1/1995 @ 103),
8/1/1999 485,456
------------------------------------------------------------------- -----------
Total 7,380,069
------------------------------------------------------------------- -----------
U.S. TREASURY NOTES--46.7%
-------------------------------------------------------------------
600,000 7.75%, 1/31/2000 605,250
-------------------------------------------------------------------
1,500,000 7.75%, 11/30/1999 1,511,250
-------------------------------------------------------------------
7,000,000 7.875%, 8/15/2001 7,102,808
-------------------------------------------------------------------
296,000 8.50%, 5/15/1995 297,850
-------------------------------------------------------------------
296,000 8.375%, 4/15/1995 297,203
-------------------------------------------------------------------
600,000 8.625%, 10/15/1995 607,875
------------------------------------------------------------------- -----------
Total 10,422,236
------------------------------------------------------------------- -----------
TOTAL GOVERNMENT SECURITIES (IDENTIFIED COST, $17,851,732) 17,802,305
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE U.S. GOVERNMENT SECURITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------------------------------------------------------------- -----------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES--16.4%
----------------------------------------------------------------------------------
GOVERNMENT AGENCIES--16.4%
-------------------------------------------------------------------
$ 750,000 Federal Home Loan Mortgage Corp., REMIC, 5.00%, (Series 1557 CI-B),
8/15/1998 $ 698,392
-------------------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corp., REMIC, 5.00%, (Series 1594-C),
7/15/2002 942,470
-------------------------------------------------------------------
750,000 Federal Home Loan Mortgage Corp., REMIC, 5.00%, (Series 1561-B),
4/15/2003 710,280
-------------------------------------------------------------------
400,000 Federal Home Loan Mortgage Corp., REMIC, 5.50%, (Series 1536-B),
7/15/2000 387,324
-------------------------------------------------------------------
1,000,000 Federal National Mortgage Association, REMIC, 5.75%,
(Series 1993-192 CI-C), 1/25/2004 934,650
------------------------------------------------------------------- -----------
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST, $3,926,484) 3,673,116
------------------------------------------------------------------- -----------
*REPURCHASE AGREEMENT--2.3%
----------------------------------------------------------------------------------
508,000 Federated Master Repurchase Agreement Program, 5.70%, dated
1/31/1995, due 2/1/1995
(at amortized cost) 508,000
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $22,286,216) $21,983,421+
------------------------------------------------------------------- -----------
</TABLE>
* The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ The cost of investments for federal tax purposes amounts to $22,286,216. The
net unrealized depreciation of investments on a federal tax basis amounts to
$302,795, which is comprised of $104,065 appreciation and $406,860
depreciation at January 31, 1995.
The following abbreviation is used in this portfolio:
REMIC--Real Estate Mortgage Investment Conduit
Note: The categories of investments are shown as a percentage of net assets
($22,320,246) at January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. GOVERNMENT SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
--------------------------------------------------------------------------------
Investments in securities, at value (identified and tax cost, $22,286,216) $21,983,421
--------------------------------------------------------------------------------
Interest receivable 385,995
--------------------------------------------------------------------------------
Deferred expenses 17,631
-------------------------------------------------------------------------------- -----------
Total assets 22,387,047
--------------------------------------------------------------------------------
LIABILITIES:
--------------------------------------------------------------------------------
Payable for Fund shares redeemed $62,785
----------------------------------------------------------------------
Accrued expenses 4,016
---------------------------------------------------------------------- -------
Total liabilities 66,801
-------------------------------------------------------------------------------- -----------
NET ASSETS for 2,363,091 shares of beneficial interest outstanding $22,320,246
-------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
Paid-in capital $24,474,452
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (302,795)
--------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (1,886,360)
--------------------------------------------------------------------------------
Undistributed net investment income 34,949
-------------------------------------------------------------------------------- -----------
Total Net Assets $22,320,246
-------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($22,320,246 / 2,363,091 shares of beneficial interest outstanding) $9.45
-------------------------------------------------------------------------------- -----------
COMPUTATION OF OFFERING PRICE:
--------------------------------------------------------------------------------
Offering Price Per Share (100/95.5 of $9.45)* $9.90
-------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. GOVERNMENT SECURITIES FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
----------------------------------------------------------------------------------
Interest income $ 807,873
----------------------------------------------------------------------------------
EXPENSES:
----------------------------------------------------------------------------------
Investment advisory fee $ 69,915
----------------------------------------------------------------------
Administrative personnel and services fee 25,253
----------------------------------------------------------------------
Custodian fees 6,649
----------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees and
expenses 10,962
----------------------------------------------------------------------
Legal fees 2,273
----------------------------------------------------------------------
Auditing fees 5,541
----------------------------------------------------------------------
Printing and postage 5,531
----------------------------------------------------------------------
Fund share registration costs 4,539
----------------------------------------------------------------------
Miscellaneous 4,889
---------------------------------------------------------------------- --------
Total expenses 135,552
----------------------------------------------------------------------
Deduct--
----------------------------------------------------------------------
Waiver of investment advisory fee $33,435
------------------------------------------------------------
Waiver of custodian fees 6,649 40,084
------------------------------------------------------------ ------- --------
Net expenses 95,468
---------------------------------------------------------------------------------- -----------
Net investment income 712,405
---------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
----------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) (1,360,886)
----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments 811,574
---------------------------------------------------------------------------------- -----------
Net realized and unrealized gain (loss) on investments (549,312)
---------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $ 163,093
---------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. GOVERNMENT SECURITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
---------------------------------------------------------
OPERATIONS--
---------------------------------------------------------
Net investment income $ 712,405 $ 1,732,397
---------------------------------------------------------
Net realized gain (loss) on investment transactions
($1,360,886 and $61,328 net loss, respectively, as
computed for federal tax purposes) (1,360,886) (425,609 )
---------------------------------------------------------
Change in unrealized appreciation (depreciation) of
investments 811,574 (1,359,549 )
--------------------------------------------------------- ---------------- -------------
Change in net assets resulting from operations 163,093 (52,761 )
--------------------------------------------------------- ---------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
---------------------------------------------------------
Dividends to shareholders from net investment income (719,967) (1,732,397 )
---------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions -- (61,338 )
---------------------------------------------------------
Distributions in excess of net investment income -- (174,281 )
--------------------------------------------------------- ---------------- -------------
Change in net assets from distributions to
shareholders (719,967) (1,968,016 )
--------------------------------------------------------- ---------------- -------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
---------------------------------------------------------
Proceeds from sale of shares 2,348,794 19,743,676
---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of dividends declared 667,449 1,898,774
---------------------------------------------------------
Cost of shares redeemed (9,246,292) (20,117,115 )
--------------------------------------------------------- ---------------- -------------
Change in net assets from Fund share transactions (6,230,049) 1,525,335
--------------------------------------------------------- ---------------- -------------
Change in net assets (6,786,923) (495,442 )
---------------------------------------------------------
NET ASSETS:
---------------------------------------------------------
Beginning of period 29,107,169 29,602,611
--------------------------------------------------------- ---------------- -------------
End of period (including undistributed net investment
income of $34,949 and $42,511, respectively) $ 22,320,246 $ 29,107,169
--------------------------------------------------------- -------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JULY 31,
JANUARY 31, 1995 -----------------
(UNAUDITED) 1994 1993*
---------------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.64 $10.21 $10.00
----------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------------------------
Net investment income 0.26 0.51 0.35
----------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.18) (0.49) 0.13
---------------------------------------------------------- --------- ------ ------
Total from investment operations 0.08 0.02 0.48
----------------------------------------------------------
LESS DISTRIBUTIONS
----------------------------------------------------------
Dividends to shareholders from net investment income (0.27) (0.51) (0.27)
----------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions -- (0.02) --
----------------------------------------------------------
Distributions in excess of net investment income(a) -- (0.06) --
---------------------------------------------------------- --------- ------ ------
Total distributions (0.27) (0.59) (0.27)
---------------------------------------------------------- --------- ------ ------
NET ASSET VALUE, END OF PERIOD $9.45 $9.64 $10.21
---------------------------------------------------------- --------- ------ ------
TOTAL RETURN** 0.91% 0.11% 4.87%
----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
----------------------------------------------------------
Expenses 0.75%(c) 0.75% 0.74%(c)
----------------------------------------------------------
Net investment income 5.61%(c) 5.17% 5.36%(c)
----------------------------------------------------------
Expense waiver/reimbursement(b) 0.32%(c) 0.18% 0.33%(c)
----------------------------------------------------------
SUPPLEMENTAL DATA
----------------------------------------------------------
Net assets, end of period (000 omitted) $ 22,320 $29,107 $29,603
----------------------------------------------------------
Portfolio turnover rate 63% 55% 23%
----------------------------------------------------------
</TABLE>
* Reflects operations for the period from November 20, 1992 (date of initial
public investment) to July 31, 1993.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) These distributions did not represent a return of capital for federal tax
purposes for the fiscal year ended July 31, 1994.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY BOND FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
CORPORATE BONDS--18.4%
--------------------------------------------------------------------------------------
FINANCE--10.8%
-------------------------------------------------------------------
$1,550,000 Associates Corp., N.A., Debenture, 8.15%, (Puttable 8/1/1996 @
100), 8/1/2009 $ 1,591,128
-------------------------------------------------------------------
750,000 Bear, Stearns & Co., Inc., Floating Rate, Medium-Term Note, 7.69%,
1/14/1999 749,295
-------------------------------------------------------------------
1,000,000 Ford Motor Credit, Floating Rate, Medium-Term Note, 6.86%,
11/9/1998 998,940
-------------------------------------------------------------------
1,500,000 Pitney Bowes Credit, Debenture, 8.55%, (Puttable 9/15/1999 @ 100),
9/15/2009 1,583,407
------------------------------------------------------------------- -----------
Total 4,922,770
------------------------------------------------------------------- -----------
INTERNATIONAL--3.7%
-------------------------------------------------------------------
115,000 Deutsche Bank Financial, Medium-Term Note, 9.28%, 5/31/1999 120,088
-------------------------------------------------------------------
1,500,000 New Zealand Government, 8.75%, 12/15/2006 1,566,166
------------------------------------------------------------------- -----------
Total 1,686,254
------------------------------------------------------------------- -----------
RETAIL STORES--DISCOUNT--3.7%
-------------------------------------------------------------------
1,500,000 Dayton Hudson Co., Medium-Term Note, 9.35%,
(Puttable 6/16/1997 @ 100), 6/16/2020 1,671,165
------------------------------------------------------------------- -----------
TRANSPORTATION--0.2%
-------------------------------------------------------------------
106,172 CSX Transportation Corp., 8.41%, 3/1/2006 107,713
------------------------------------------------------------------- -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST, $8,444,303) 8,387,902
------------------------------------------------------------------- -----------
MORTGAGE-BACKED SECURITIES--34.4%
--------------------------------------------------------------------------------------
GOVERNMENT AGENCY CMOS--27.2%
-------------------------------------------------------------------
1,750,000 Federal Home Loan Mortgage Corp., Series 1206-H, 7.00%, 3/15/2021 1,571,552
-------------------------------------------------------------------
29,893 Federal Home Loan Mortgage Corp., Series 27-2525, 8.00%, 8/1/2008 29,230
-------------------------------------------------------------------
1,107,383 Federal Home Loan Mortgage Corp., Series 1143-H, 8.00%, 8/15/2019 1,111,137
-------------------------------------------------------------------
15,986 Federal Home Loan Mortgage Corp., Series 38-0009, 9.50%, 10/1/2002 16,383
-------------------------------------------------------------------
500,000 Federal National Mortgage Assoc., Series 1993-44PD, 5.50%,
1/25/2012 467,785
-------------------------------------------------------------------
1,324,439 Federal National Mortgage Assoc., Series 1992-43B, 7.50%,
11/25/2018 1,313,340
-------------------------------------------------------------------
1,500,000 Federal National Mortgage Assoc., Series 1992-73E, 7.50%, 5/25/2019 1,471,485
-------------------------------------------------------------------
1,500,000 Federal National Mortgage Assoc., Series G92-35E, 7.50%, 7/25/2022 1,347,210
-------------------------------------------------------------------
1,000,000 Federal National Mortgage Assoc., Series 1994-89X-J, 8.00%,
8/25/2008 977,344
-------------------------------------------------------------------
1,618,169 Federal National Mortgage Assoc., Series 1994-95 EG, 8.00%,
3/25/2024 1,499,185
-------------------------------------------------------------------
575,954 Federal National Mortgage Assoc., Series 1991-140C, 8.50%,
5/25/2020 577,071
-------------------------------------------------------------------
2,000,000 Federal National Mortgage Assoc., Series G-18H, 8.75%, 1/25/2007 2,027,460
------------------------------------------------------------------- -----------
Total 12,409,182
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE QUALITY BOND FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
MORTGAGE-BACKED SECURITIES--CONTINUED
--------------------------------------------------------------------------------------
PRIVATE LABEL CMOS--7.2%
-------------------------------------------------------------------
$ 500,000 GE Capital Mortgage Services Corp., Series 1993-2F, 7.00%,
11/25/2007 $ 444,864
-------------------------------------------------------------------
250,000 Prudential Funding Corp., Series 14-F, 8.40%, 3/20/2005 249,333
-------------------------------------------------------------------
500,000 Prudential Home Mortgage Securities Corp., Series 1993-9, Class
A-10, 7.05%, 3/25/2008 455,953
-------------------------------------------------------------------
500,000 Prudential Home Mortgage Securities Corp., Series 1993-27, Class
A-3, 7.50%, 7/25/2023 448,860
-------------------------------------------------------------------
1,750,000 Prudential Home Mortgage Securities Corp., Series 1994-30, Class
A-7, 8.25%, 10/25/2024 1,703,782
------------------------------------------------------------------- -----------
Total 3,302,792
------------------------------------------------------------------- -----------
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST, $15,960,068) 15,711,974
------------------------------------------------------------------- -----------
GOVERNMENT SECURITIES--42.4%
--------------------------------------------------------------------------------------
GOVERNMENT AGENCIES--17.5%
-------------------------------------------------------------------
1,500,000 Federal Home Loan Bank, Debenture, 7.70%, 12/16/1996 1,509,366
-------------------------------------------------------------------
1,000,000 Federal Home Loan Bank, Debenture, 7.81%, 7/17/1996 1,007,309
-------------------------------------------------------------------
500,000 Federal Home Loan Mortgage Corp., Debenture, 6.16%,
(Callable 3/29/1996 @ 100), 3/29/2000 460,064
-------------------------------------------------------------------
1,500,000 Federal Home Loan Mortgage Corp., Debenture, 7.81%,
(Callable 4/13/1999 @ 100), 4/13/2009 1,427,103
-------------------------------------------------------------------
750,000 Federal National Mortgage Assoc., Debenture, 6.20%,
(Callable 7/10/1998 @ 100), 7/10/2003 669,078
-------------------------------------------------------------------
500,000 Federal National Mortgage Assoc., Debenture, 7.30%,
(Callable 10/28/1997 @ 100), 10/28/2002 472,035
-------------------------------------------------------------------
900,000 Federal National Mortgage Assoc., Debenture, 7.55%,
(Callable 6/10/1999 @ 100), 6/10/2004 863,280
-------------------------------------------------------------------
1,500,000 Federal National Mortgage Assoc., Medium-Term Notes, 8.05%,
(Callable 5/20/1997 @ 100), 5/20/2004 1,514,349
-------------------------------------------------------------------
79,124 Student Loan Marketing Association, 9.40%, 5/31/2002 85,940
------------------------------------------------------------------- -----------
Total 8,008,524
------------------------------------------------------------------- -----------
U.S. TREASURY BOND--5.7%
-------------------------------------------------------------------
2,700,000 7.50%, 11/15/2016 2,615,625
------------------------------------------------------------------- -----------
U.S. TREASURY NOTES--19.2%
-------------------------------------------------------------------
4,000 5.50%, 2/15/1995 3,999
-------------------------------------------------------------------
1,500,000 7.25%, 5/15/2004 1,464,843
-------------------------------------------------------------------
1,500,000 7.50%, 11/15/2004 1,493,438
-------------------------------------------------------------------
173,000 7.75%, 5/15/2002 172,351
-------------------------------------------------------------------
8,000 7.75%, 2/15/1995 8,005
-------------------------------------------------------------------
3,000,000 7.75%, 1/31/2000 3,026,250
-------------------------------------------------------------------
4,000 8.375%, 4/15/1995 4,016
-------------------------------------------------------------------
</TABLE>
FOUNTAIN SQUARE QUALITY BOND FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
GOVERNMENT SECURITIES--CONTINUED
--------------------------------------------------------------------------------------
U.S. TREASURY NOTES--CONTINUED
-------------------------------------------------------------------
$ 4,000 8.50%, 5/15/1995 $ 4,025
-------------------------------------------------------------------
1,000,000 8.50%, 11/15/1995 1,012,812
-------------------------------------------------------------------
231,000 8.50%, 11/15/1995 240,096
-------------------------------------------------------------------
471,000 8.625%, 10/15/1995 477,182
-------------------------------------------------------------------
115,000 8.75%, 8/15/2000 121,145
-------------------------------------------------------------------
231,000 8.875%, 2/15/1996 235,331
-------------------------------------------------------------------
231,000 9.00%, 5/15/1998 241,106
-------------------------------------------------------------------
231,000 9.25%, 8/15/1998 243,560
------------------------------------------------------------------- -----------
Total 8,748,159
------------------------------------------------------------------- -----------
TOTAL GOVERNMENT SECURITIES (IDENTIFIED COST, $19,734,888) 19,372,308
------------------------------------------------------------------- -----------
*REPURCHASE AGREEMENT--4.9%
--------------------------------------------------------------------------------------
2,260,000 Federated Master Repurchase Agreement Program, 5.70%, dated
1/31/1995, due 2/1/1995 (at amortized cost) 2,260,000
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $46,399,259) $45,732,184+
------------------------------------------------------------------- -----------
</TABLE>
* The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ The cost of investments for federal tax purposes amounts to $46,399,259. The
net unrealized depreciation of investments on a federal tax basis amounts to
$667,075, which is comprised of $210,897 appreciation and $877,972
depreciation at January 31, 1995.
Note: The categories of investments are shown as a percentage of net assets
($45,696,073) at January 31, 1995.
The following abbreviation is used in this portfolio:
CMOs--Collateralized Mortgage Obligations
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
---------------------------------------------------------------------------------
Investments in securities, at value
(identified and tax cost, $46,399,259) $45,732,184
---------------------------------------------------------------------------------
Receivable for investments sold 1,057,711
---------------------------------------------------------------------------------
Income receivable 596,245
---------------------------------------------------------------------------------
Deferred expenses 5,807
--------------------------------------------------------------------------------- -----------
Total assets 47,391,947
---------------------------------------------------------------------------------
LIABILITIES:
---------------------------------------------------------------------------------
Payable for investments purchased $1,633,766
--------------------------------------------------------------------
Payable for Fund shares redeemed 51,441
--------------------------------------------------------------------
Payable to Adviser 993
--------------------------------------------------------------------
Accrued expenses 9,674
-------------------------------------------------------------------- ----------
Total liabilities 1,695,874
--------------------------------------------------------------------------------- -----------
NET ASSETS for 4,899,599 shares of beneficial interest outstanding $45,696,073
--------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
---------------------------------------------------------------------------------
Paid-in capital $49,885,117
---------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (667,075)
---------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (3,582,940)
---------------------------------------------------------------------------------
Undistributed net investment income 60,971
--------------------------------------------------------------------------------- -----------
Total Net Assets $45,696,073
--------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($45,696,073 / 4,899,599 shares of beneficial interest outstanding) $9.33
--------------------------------------------------------------------------------- -----------
COMPUTATION OF OFFERING PRICE:
---------------------------------------------------------------------------------
Offering Price Per Share (100/95.5 of $9.33)* $9.77
--------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY BOND FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
----------------------------------------------------------------------------------
Interest income $ 1,738,702
----------------------------------------------------------------------------------
EXPENSES:
----------------------------------------------------------------------------------
Investment advisory fee $128,007
----------------------------------------------------------------------
Administrative personnel and services fee 26,692
----------------------------------------------------------------------
Custodian fees 5,227
----------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees
and expenses 12,222
----------------------------------------------------------------------
Legal fees 1,544
----------------------------------------------------------------------
Auditing fees 5,681
----------------------------------------------------------------------
Printing and postage 4,432
----------------------------------------------------------------------
Fund share registration costs 5,541
----------------------------------------------------------------------
Miscellaneous 4,426
---------------------------------------------------------------------- --------
Total expenses 193,772
----------------------------------------------------------------------
Deduct--
----------------------------------------------------------------------
Waiver of investment advisory fee $13,915
------------------------------------------------------------
Waiver of custodian fees 5,227 19,142
------------------------------------------------------------ ------- --------
Net expenses 174,630
---------------------------------------------------------------------------------- -----------
Net investment income 1,564,072
---------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
----------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) (1,404,240)
----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 261,275
---------------------------------------------------------------------------------- -----------
Net realized and unrealized gain (loss) on investments (1,142,965)
---------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $ 421,107
---------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
---------------------------------------------------------
OPERATIONS--
---------------------------------------------------------
Net investment income $ 1,564,072 $ 2,633,885
---------------------------------------------------------
Net realized gain (loss) on investment transactions
($1,404,240 net loss and $86,010 net gain, respectively,
as computed for federal tax purposes) (1,404,240) (2,092,565)
---------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments 261,275 (1,378,385)
--------------------------------------------------------- -------------- ------------
Change in net assets resulting from operations 421,107 (837,065)
--------------------------------------------------------- -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS--
---------------------------------------------------------
Dividends to shareholders from net investment income (1,563,131) (2,633,885)
---------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions -- (153,128)
---------------------------------------------------------
Distributions in excess of net investment income -- (63,818)
--------------------------------------------------------- -------------- ------------
Change in net assets resulting from distributions to
shareholders (1,563,131) (2,850,831)
--------------------------------------------------------- -------------- ------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
---------------------------------------------------------
Proceeds from sale of shares 6,963,299 22,977,402
---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment
of dividends declared 1,184,455 2,373,604
---------------------------------------------------------
Cost of shares redeemed (8,581,696) (12,353,228)
--------------------------------------------------------- -------------- ------------
Change in net assets from Fund share transactions (433,942) 12,997,778
--------------------------------------------------------- -------------- ------------
Change in net assets (1,575,966) 9,309,882
---------------------------------------------------------
NET ASSETS:
---------------------------------------------------------
Beginning of period 47,272,039 37,962,157
--------------------------------------------------------- -------------- ------------
End of period (including undistributed net investment
income of $60,971 and $60,030, respectively) $ 45,696,073 $ 47,272,039
--------------------------------------------------------- -------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY BOND FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
SIX MONTHS ENDED JULY 31,
JANUARY 31, 1995 ------------------
(UNAUDITED) 1994 1993*
---------------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.55 $10.29 $10.00
---------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------
Net investment income 0.32 0.57 0.41
---------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.22) (0.69) 0.26
--------------------------------------------------------- --------- ----- ------
Total from investment operations 0.10 (0.12) 0.67
---------------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------------
Dividends to shareholders from net investment income (0.32) (0.57) (0.38)
---------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions -- (0.03) --
---------------------------------------------------------
Distributions in excess of net investment income (a) -- (0.02) --
--------------------------------------------------------- --------- ----- ------
Total distributions (0.32) (0.62) (0.38)
--------------------------------------------------------- --------- ----- ------
NET ASSET VALUE, END OF PERIOD $9.33 $9.55 $10.29
--------------------------------------------------------- --------- ----- ------
TOTAL RETURN** 1.08% (1.25%) 6.78%
---------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
---------------------------------------------------------
Expenses 0.75%(c) 0.75% 0.74%(c)
---------------------------------------------------------
Net investment income 6.72%(c) 5.76% 6.07%(c)
---------------------------------------------------------
Expense waiver/reimbursement(b) 0.08%(c) 0.11% 0.23%(c)
---------------------------------------------------------
SUPPLEMENTAL DATA
---------------------------------------------------------
Net assets, end of period (000 omitted) $45,696 $47,272 $37,962
---------------------------------------------------------
Portfolio turnover rate 80% 112% 19%
---------------------------------------------------------
</TABLE>
* Reflects operations for the period from November 20, 1992 (date of initial
public investment) to July 31, 1993.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) These distributions did not represent a return of capital for federal tax
purposes for the year ended July 31, 1994.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
---------- -------------------------------------------------------- ------------ -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES--98.8%
----------------------------------------------------------------------
OHIO--98.8%
--------------------------------------------------------
$ 600,000 Akron, OH, LT GO Bonds, (FSA Insured), 4.00%, 12/1/2000 Aaa $ 533,994
--------------------------------------------------------
500,000 Akron, OH, LT GO Bonds, (MBIA Insured), 5.60%, (Callable
12/1/2004 @ 102), 12/1/2006 AAA 489,805
--------------------------------------------------------
100,000 Bedford, OH, City School District, (Series 1993), 4.70%,
12/1/1999 A 94,969
--------------------------------------------------------
100,000 Bedford, OH, City School District, 5.50%,
(Callable 12/1/2003 @ 101), 12/1/2006 A 94,182
--------------------------------------------------------
100,000 Cincinnati, OH, UT GO Bonds, 4.50%, 12/1/1997 Aa 97,991
--------------------------------------------------------
200,000 Cincinnati, OH, UT GO Bonds, 4.50%, 12/1/1998 Aa 193,492
--------------------------------------------------------
500,000 Cincinnati, OH, UT GO Bonds, 4.60%, 12/1/2004 Aa 449,215
--------------------------------------------------------
200,000 Cincinnati, OH, City School District, RANs, 5.60%,
6/15/1997 A+ 200,204
--------------------------------------------------------
200,000 Clermont County, OH, Refunding UT GO Bonds, Building &
Road Improvements, (AMBAC Insured), 4.90%, 9/1/2001 Aaa 192,156
--------------------------------------------------------
165,000 Clermont County, OH, Hospital Facilities Revenue Bonds,
(Series A)/(Mercy Health System)/(MBIA Insured), 4.85%,
1/1/2000 Aaa 158,641
--------------------------------------------------------
100,000 Clermont County, OH, Waterworks Refunding Revenue Bonds,
(Series 1993)/(AMBAC Insured), 3.70%, 12/1/1996 Aaa 96,895
--------------------------------------------------------
50,000 Clermont County, OH, Waterworks Refunding Revenue Bonds,
(AMBAC Insured), 4.70%, 12/1/2000 Aaa 47,354
--------------------------------------------------------
500,000 Clermont County, OH, LT GO Bonds, (Court House
Project)/(AMBAC Insured), 4.30%, 12/1/1998 AAA 476,160
--------------------------------------------------------
250,000 Clermont County, OH, Sewer System, Refunding Revenue
Bonds, (AMBAC Insured), 4.30%, 12/1/2001 Aaa 223,975
--------------------------------------------------------
400,000 Clermont County, OH, Sewer System, Refunding
Revenue Bonds, (AMBAC Insured), 4.60%,
(Callable 12/1/2003 @ 102), 12/1/2004 Aaa 354,452
--------------------------------------------------------
100,000 Cleveland, OH, LT GO Refunding Bonds,
(AMBAC Insured), 4.80%, 9/1/2001 Aaa 94,639
--------------------------------------------------------
500,000 Cleveland, OH, LT GO Refunding Bonds, 4.90%, 9/1/2002 Aaa 472,675
--------------------------------------------------------
100,000 Columbus, OH, LT GO Bonds, (Series A), 3.30%, 7/1/1995 Aa1 99,508
--------------------------------------------------------
300,000 Columbus, OH, UT GO Bonds, (Series D), 4.55%, 9/15/1999 Aa1 286,017
--------------------------------------------------------
200,000 Columbus, OH, (FGIC Insured), 4.00%, 12/1/1996 Aaa 195,432
--------------------------------------------------------
</TABLE>
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
---------- -------------------------------------------------------- ------------ -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------
OHIO--CONTINUED
--------------------------------------------------------
$ 100,000 Columbus, OH, Refunding Sewer Revenue Bonds, 5.40%,
6/1/1998 A1 $ 100,294
--------------------------------------------------------
100,000 Columbus, OH, Water System Refunding Revenue Bonds,
5.05%, 11/1/1995 A1 100,188
--------------------------------------------------------
500,000 Columbus, OH, Water System Refunding Revenue Bonds,
5.75%, 11/1/2000 A1 509,985
--------------------------------------------------------
500,000 Columbus, OH, City School District, UT GO Bonds,
Refunding Revenue Bonds, (FGIC Insured), 4.45%,
12/1/1998 Aaa 480,205
--------------------------------------------------------
500,000 Columbus, OH, Refunding LT GO Bonds, 5.15%
(Callable 9/15/2003 @ 102), 9/15/2004 Aa1 474,135
--------------------------------------------------------
480,000 Cuyahoga County, OH, Hospital Revenue Bonds, (Cleveland
Clinic Foundation), 5.50%, (Original Issue Discount
Yield: 5.60%), 11/15/1999 Aa 475,978
--------------------------------------------------------
50,000 Cuyahoga County, OH, Refunding Revenue Bonds,
(Series A), 4.75%, 10/1/2003 Aa 44,327
--------------------------------------------------------
50,000 Cuyahoga County, OH, LT GO Bonds, 3.40%, 5/15/1995 Aa 49,789
--------------------------------------------------------
500,000 Cuyhoga County, OH, UT GO Bonds, 4.50%, 10/1/2000 Aa 452,960
--------------------------------------------------------
150,000 Dublin, OH, City School District, UT GO Bonds, (AMBAC
Insured), 5.25%, 12/1/2000 Aaa 148,137
--------------------------------------------------------
100,000 Dublin, OH, City School District, UT GO Bonds, Refunding
Revenue Bonds, (AMBAC Insured), 4.80%, 12/1/2002 Aaa 93,290
--------------------------------------------------------
150,000 Dublin, OH, City School District, Refunding UT GO Bonds,
(FGIC Insured), 5.95%, 12/1/2002 Aaa 153,278
--------------------------------------------------------
245,000 Franklin County, OH, LT GO Bonds, Refunding Revenue
Bonds, 4.95%, (Callable 12/1/2003 @ 102), 12/1/2004 Aaa 229,538
--------------------------------------------------------
500,000 Franklin County, OH, Hospital Revenue Bonds,
(Riverside United Methodist), 5.30%, (Original Issue
Discount Yield: 5.40%) 5/15/2002 Aa 478,960
--------------------------------------------------------
250,000 Hamilton County, OH, LT GO Bonds,
(Court House Project), 4.60%, 12/1/2003 Aa 225,610
--------------------------------------------------------
500,000 Hamilton County, OH, Electric System, Refunding Revenue
Bonds, (Series A)/(FGIC Insured), 4.75%, 10/15/1997 Aaa 492,990
--------------------------------------------------------
500,000 Hamilton County, OH, Sewer System, Refunding Revenue &
Improvement Bonds, (FGIC Insured), 3.90%, 12/1/1996 Aaa 487,125
--------------------------------------------------------
200,000 Hamilton County, OH, City School District, Energy
Conservation Notes, 4.60%, 9/1/2000 A- 187,592
--------------------------------------------------------
500,000 Hamilton County, OH, LT GO Bonds, 5.00%, 12/1/2002 Aa 478,090
--------------------------------------------------------
200,000 Hilliard, OH, School District, Refunding UT GO Bonds,
(FGIC Insured), 5.50%, 12/1/1997 Aaa 201,598
--------------------------------------------------------
</TABLE>
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
---------- -------------------------------------------------------- ------------ -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------
OHIO--CONTINUED
--------------------------------------------------------
$ 500,000 Huron County, OH, LT GO Bonds, 7.00%,
(Callable 12/1/2000 @ 100), 12/1/2009 A $ 535,350
--------------------------------------------------------
500,000 Kettering, OH, Refunding UT GO Bonds, 4.30%, 12/1/1998 Aa 474,515
--------------------------------------------------------
200,000 Kettering, OH, Refunding LT GO Bonds, 4.50%, 12/1/1999 Aa 188,598
--------------------------------------------------------
200,000 Kettering, OH, Refunding UT GO Bonds, 4.90%, 12/1/2002 Aa 187,582
--------------------------------------------------------
500,000 Lucas County, OH, LT GO Bonds, (Series 1)/
(AMBAC Insured), 5.05%, 12/1/1999 AAA 491,355
--------------------------------------------------------
505,000 Mahoning County, OH, LT GO Bonds, (MBIA Insured), 5.70%,
(Original Issue Discount Yield: 5.75%)/
(Callable 12/1/2004 @ 101), 12/1/2007 AAA 502,228
--------------------------------------------------------
110,000 Marysville, OH, UT GO Bonds, (AMBAC Insured), 3.70%,
12/1/1996 Aaa 106,751
--------------------------------------------------------
100,000 Montgomery County, OH, Sewer Revenue Bonds,
(Greater Moraine-Beaver Creek), 4.90%, 9/1/2001 Aaa 95,601
--------------------------------------------------------
100,000 Montgomery County, OH, Water Revenue Bonds, (Greater
Moraine-Beaver Creek)/(AMBAC Insured), 4.75%, 11/15/2001 AAA 94,543
--------------------------------------------------------
100,000 Ohio State, UT GO Bonds, 5.10%, 8/1/1996 AA 100,171
--------------------------------------------------------
500,000 Ohio State, UT GO Bonds, 5.90%, 8/1/2006 AA 510,465
--------------------------------------------------------
500,000 Ohio State, Refunding UT GO Bonds, 5.15%, 9/1/2001 Aa 491,500
--------------------------------------------------------
100,000 Ohio State Highway, UT GO Bonds, (Series R), 4.70%,
5/15/1997 Aa 98,947
--------------------------------------------------------
350,000 Ohio State Air Quality Development Authority,
(Buckeye Power Inc.), 4.70%, 8/1/2000 A1 325,535
--------------------------------------------------------
450,000 Ohio State Air Quality Development Authority, Refunding
Revenue Bonds, (Buckeye Power Inc.), 4.90%, 8/1/2002 A1 413,050
--------------------------------------------------------
250,000 Ohio State Building Authority, (State Correctional
Facilities Project), 4.10%, 10/1/1995 A 248,412
--------------------------------------------------------
300,000 Ohio State Building Authority, (State Correctional
Facilities Project)/(Series A), 4.40%, 10/1/1996 A1 296,007
--------------------------------------------------------
400,000 Ohio State Building Authority, (State Facilities
Administration Building)/(Series A)/(MBIA Insured),
5.85%, (Original Issue Discount Yield: 5.95%)/
(Callable 10/1/2004 @ 102), 10/1/2007 AAA 402,984
--------------------------------------------------------
400,000 Ohio State Building Authority, (State Facilities
Administration Building)/(Series A)/(MBIA Insured),
6.00%, (Original Issue Discount Yield: 6.05%)/(Callable
10/1/2004 @ 102), 10/1/2008 AAA 403,632
--------------------------------------------------------
</TABLE>
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
---------- -------------------------------------------------------- ------------ -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------
OHIO--CONTINUED
--------------------------------------------------------
$ 100,000 Ohio State Higher Educational Facilities, Revenue Bonds,
(Oberlin College Project), 4.50%, 10/1/1999 AA $ 94,704
--------------------------------------------------------
100,000 Ohio State Facilities, Refunding Bonds, Higher
Educational Facilities, (Series 11-A)/(AMBAC Insured),
4.60%, 6/1/1999 Aaa 95,305
--------------------------------------------------------
100,000 Ohio State Public Common Facilities, Higher Educational
Facilities, (Series 11-A), 5.50%, 12/1/1999 A 99,656
--------------------------------------------------------
500,000 Ohio State Public Common Facilities, Higher Educational
Facilities, 5.50%, (Callable 12/1/2001 @ 102), 12/1/2003 AAA 493,430
--------------------------------------------------------
300,000 Ohio State Public Common Facilities, Higher Educational
Facilities, 4.625%, 12/1/1998 A1 289,812
--------------------------------------------------------
200,000 Ohio State Public Common Facilities, Mental Health
Facilities, (Series 11-A), 6.30%, (Callable 12/1/2000 @
102), 12/1/2002 Aaa 210,702
--------------------------------------------------------
400,000 Ohio State Public Common Facilities, Mental Health
Facilities, (Series 11-B), 4.25%, 6/1/2002 A1 347,700
--------------------------------------------------------
500,000 Ohio State Public Common Facilities, Refunding Revenue
Bonds, (Mental Health Facilities Project)/(FSA Insured),
4.30%, 6/1/2003 NR 435,595
--------------------------------------------------------
500,000 Ohio State Public Park & Recreation Revenue Bonds,
(Series II-A), 4.50%, 12/1/1995 A1 497,300
--------------------------------------------------------
475,000 Ohio State University, General Receipts Bonds,
(Series A-1 & A-2), 4.85%, 12/1/1998 A1 465,351
--------------------------------------------------------
500,000 Ohio State University, General Receipts Bonds,
Refunding Revenue Bonds, (FGIC Insured) 4.70%
(Callable 12/1/2003 @ 102), 12/1/2005 Aaa 445,780
--------------------------------------------------------
300,000 Ohio State University, General Receipts Bonds, 5.75%,
(Callable 12/1/2003 @ 102), 12/1/2007 A 295,695
--------------------------------------------------------
100,000 Ohio State Water Development Authority, Revenue
Refunding Bonds, (Safe Water Project)/(MBIA Insured),
5.00%, 12/1/1999 Aaa 98,185
--------------------------------------------------------
500,000 Ohio State Water Development Authority, Revenue
Refunding Bonds, (MBIA Insured), 4.95%, 12/1/1998 Aaa 494,645
--------------------------------------------------------
500,000 Ohio State Water Development Authority, Revenue Bonds,
(Pollution Control Loan Fund State Matching
Project)/(MBIA Insured), 4.35%, 6/1/2000 Aaa 461,275
--------------------------------------------------------
250,000 Pickerington, OH, Local School District, UT GO Bonds,
(FGIC Insured), 4.60%, 12/1/2003 Aaa 224,975
--------------------------------------------------------
750,000 Pickerington, OH, Local School District,
(AMBAC Insured), 5.55%, 12/1/2007 Aaa 729,818
--------------------------------------------------------
500,000 Solon, OH, City School District, Refunding UT GO Bonds,
(AMBAC Insured), 4.50%, 12/1/2003 Aaa 441,555
--------------------------------------------------------
</TABLE>
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
---------- -------------------------------------------------------- ------------ -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------
OHIO--CONTINUED
--------------------------------------------------------
$ 150,000 Stark County, OH, Refunding LT GO Bonds,
(AMBAC Insured), 4.75%, 11/15/1999 Aaa $ 144,148
--------------------------------------------------------
400,000 Toledo, OH, LT GO Bonds, (AMBAC Insured), 5.05%,
12/1/1999 AAA 395,252
--------------------------------------------------------
500,000 University of Cincinnati, OH, General Receipts Bonds,
3.60%, 6/1/1997 A1 476,385
--------------------------------------------------------
500,000 University of Cincinnati, OH, General Receipts Refunding
Revenue Bonds, 4.55%, 6/1/2002 A1 453,305
--------------------------------------------------------
100,000 University of Cincinnati, OH, Certificates of
Participation, (MBIA Insured), 6.40%, 12/1/2003 Aaa 105,648
--------------------------------------------------------
150,000 Warren County, OH, Sewer System, Revenue Bonds, (FGIC
Insured), 4.90%, 12/1/2002 Aaa 141,585
--------------------------------------------------------
200,000 Warren County, OH, Sewer System, Revenue Refunding
Bonds, (Series 1993)/(FGIC Insured), 5.10%,
(Callable 12/1/2003 @ 102), 12/1/2004 Aaa 188,316
--------------------------------------------------------
350,000 West Geauga, OH, Local School District, UT GO Bonds,
(AMBAC Insured), 5.45%, 11/1/2004 AAA 344,001
-------------------------------------------------------- -----------
TOTAL MUNICIPAL SECURITIES (IDENTIFIED COST,
$26,496,171) 25,153,174
-------------------------------------------------------- -----------
REGULATED INVESTMENT COMPANIES--1.4%
----------------------------------------------------------------------
350,509 Midwest Ohio Tax Free Money Market Fund
(at net asset value) NR 350,509
-------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $26,846,680) $25,503,683+
-------------------------------------------------------- -----------
</TABLE>
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings. Current credit ratings are unaudited.
+ The cost of investments for federal tax purposes amounts to $26,846,680. The
net unrealized depreciation of investments on a federal tax basis amounts to
$1,342,997, which is comprised of $5,508 appreciation and $1,348,505
depreciation at January 31, 1995.
Note: The categories of investments are shown as a percentage of net assets
($25,468,206) at January 31, 1995.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
LT -- Limited Tax
MBIA -- Municipal Bond Investors Assurance
RANs -- Revenue Anticipation Notes
UT -- Unlimited Tax
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
--------------------------------------------------------------------------------
Investments in securities, at value
(identified and tax cost, $26,846,680) $25,503,683
--------------------------------------------------------------------------------
Receivable for investments sold 669,905
--------------------------------------------------------------------------------
Income receivable 310,150
--------------------------------------------------------------------------------
Deferred expenses 4,466
-------------------------------------------------------------------------------- -----------
Total assets 26,488,204
--------------------------------------------------------------------------------
LIABILITIES:
--------------------------------------------------------------------------------
Payable for investments purchased $980,955
---------------------------------------------------------------------
Payable for Fund shares redeemed 22,221
---------------------------------------------------------------------
Accrued expenses 16,822
--------------------------------------------------------------------- --------
Total liabilities 1,019,998
-------------------------------------------------------------------------------- -----------
NET ASSETS for 2,679,838 shares of beneficial interest outstanding $25,468,206
-------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
Paid-in capital $26,880,251
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (1,342,997)
--------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (129,061)
--------------------------------------------------------------------------------
Undistributed net investment income 60,013
-------------------------------------------------------------------------------- -----------
Total Net Assets $25,468,206
-------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($25,468,206 / 2,679,838 shares of beneficial interest outstanding) $9.50
-------------------------------------------------------------------------------- -----------
COMPUTATION OF OFFERING PRICE:
--------------------------------------------------------------------------------
Offering Price Per Share (100/95.5 of $9.50)* $9.95
-------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
------------------------------------------------------------------------------------
Interest income $ 596,236
------------------------------------------------------------------------------------
EXPENSES:
------------------------------------------------------------------------------------
Investment advisory fee $ 70,003
------------------------------------------------------------------------
Administrative personnel and services fee 25,206
------------------------------------------------------------------------
Custodian fees 6,949
------------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees and
expenses 21,599
------------------------------------------------------------------------
Legal fees 2,728
------------------------------------------------------------------------
Auditing fees 7,530
------------------------------------------------------------------------
Printing and postage 695
------------------------------------------------------------------------
Fund share registration costs 7,194
------------------------------------------------------------------------
Miscellaneous 4,645
------------------------------------------------------------------------ --------
Total expenses 146,549
------------------------------------------------------------------------
Deduct--
------------------------------------------------------------------------
Waiver of investment advisory fee $ 3,820
-------------------------------------------------------------
Waiver of custodian fees 6,949
-------------------------------------------------------------
Reimbursement of other operating expenses by Adviser 135,780 146,549
------------------------------------------------------------- -------- --------
Net expenses 0
------------------------------------------------------------------------------------ ---------
Net investment income 596,236
------------------------------------------------------------------------------------ ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
------------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) (96,381)
------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments (595,729)
------------------------------------------------------------------------------------ ---------
Net realized and unrealized gain (loss) on investments (692,110)
------------------------------------------------------------------------------------ ---------
Change in net assets resulting from operations $ (95,874)
------------------------------------------------------------------------------------ ---------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
--------------------------------------------------------
OPERATIONS--
--------------------------------------------------------
Net investment income $ 596,236 $ 831,264
--------------------------------------------------------
Net realized gain (loss) on investment transactions
($96,381 net loss and $0, respectively, as computed for
federal tax purposes) (96,381) (32,680)
--------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
investments (595,729) (701,051)
----------
-------------------------------------------------------- -------------
Change in net assets resulting from operations (95,874) 97,533
-------------------------------------------------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
--------------------------------------------------------
Dividends to shareholders from net investment income (560,339) (808,177)
-------------------------------------------------------- -------------- -------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
--------------------------------------------------------
Proceeds from sale of shares 5,456,494 23,031,779
--------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of dividends declared 363,712 476,904
--------------------------------------------------------
Cost of shares redeemed (3,550,272) (7,106,691)
-------------------------------------------------------- -------------- -------------
Change in net assets from Fund share transactions 2,269,934 16,401,992
-------------------------------------------------------- -------------- -------------
Change in net assets 1,613,721 15,691,348
--------------------------------------------------------
NET ASSETS:
--------------------------------------------------------
Beginning of period 23,854,485 8,163,137
-------------------------------------------------------- -------------- -------------
End of period (including undistributed net investment
income of $60,013 and $24,116, respectively) $ 25,468,206 $23,854,485
-------------------------------------------------------- -------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE OHIO TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JULY 31,
JANUARY 31, 1995 ----------------------
(UNAUDITED) 1994 1993*
---------------- ------- ------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.75 $9.95 $10.00
------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
------------------------------------------------
Net investment income 0.22 0.40 0.05
------------------------------------------------
Net realized and unrealized gain (loss) on
investments (0.26) (0.21) (0.05)
------------------------------------------------ --------- ----- ------
Total from investment operations (0.04) 0.19 (0.00)
------------------------------------------------
LESS DISTRIBUTIONS
------------------------------------------------
Dividends to shareholders from net investment
income (0.21) (0.39) (0.05)
------------------------------------------------ --------- ----- ------
NET ASSET VALUE, END OF PERIOD $9.50 $9.75 $9.95
------------------------------------------------ --------- ----- ------
TOTAL RETURN** (0.39%) 1.95% (0.01%)
------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
------------------------------------------------
Expenses 0.00% 0.00% 0.00%
------------------------------------------------
Net investment income 4.66%(b) 4.18% 3.53%(b)
------------------------------------------------
Expense waiver/reimbursement(a) 1.14%(b) 1.33% 2.21%(b)
------------------------------------------------
SUPPLEMENTAL DATA
------------------------------------------------
Net assets, end of period (000 omitted) $ 25,468 $23,854 $8,163
------------------------------------------------
Portfolio turnover rate 8% 94% 31%
------------------------------------------------
</TABLE>
* Reflects operations for the period from May 27, 1993 (date of initial public
investment) to July 31, 1993.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY GROWTH FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--97.7%
--------------------------------------------------------------------------------------
AGRICULTURE--1.2%
-------------------------------------------------------------------
20,000 Pioneer Hi-Bred International, Inc. $ 735,000
------------------------------------------------------------------- -----------
BANKING--3.8%
-------------------------------------------------------------------
85,000 Firstar Corp. 2,337,500
------------------------------------------------------------------- -----------
BUILDING MATERIALS--5.5%
-------------------------------------------------------------------
42,000 Masco Corp. 981,750
-------------------------------------------------------------------
70,000 Sherwin Williams Co. 2,345,000
------------------------------------------------------------------- -----------
Total 3,326,750
------------------------------------------------------------------- -----------
CHEMICALS--6.9%
-------------------------------------------------------------------
60,000 Air Products & Chemicals, Inc. 2,677,500
-------------------------------------------------------------------
80,000 RPM, Inc. 1,480,000
------------------------------------------------------------------- -----------
Total 4,157,500
------------------------------------------------------------------- -----------
COMPUTER SOFTWARE SERVICES--5.3%
-------------------------------------------------------------------
40,000 Automatic Data Processing, Inc. 2,370,000
-------------------------------------------------------------------
14,000 Microsoft Corp. 831,250
------------------------------------------------------------------- -----------
Total 3,201,250
------------------------------------------------------------------- -----------
CONSUMER PRODUCTS--3.8%
-------------------------------------------------------------------
18,000 Procter & Gamble Co. 1,174,500
-------------------------------------------------------------------
50,000 Newell Co. 1,125,000
------------------------------------------------------------------- -----------
Total 2,299,500
------------------------------------------------------------------- -----------
ELECTRICAL EQUIPMENT--12.2%
-------------------------------------------------------------------
46,000 Emerson Electric Co. 2,898,000
-------------------------------------------------------------------
60,000 General Electric Co. 3,090,000
-------------------------------------------------------------------
24,000 W.W. Grainger, Inc. 1,431,000
------------------------------------------------------------------- -----------
Total 7,419,000
------------------------------------------------------------------- -----------
ELECTRONICS--7.1%
-------------------------------------------------------------------
45,000 Intel Corp. 3,121,875
-------------------------------------------------------------------
30,000 Loral Corp. 1,166,250
------------------------------------------------------------------- -----------
Total 4,288,125
------------------------------------------------------------------- -----------
ENTERTAINMENT--2.1%
-------------------------------------------------------------------
25,000 Disney (Walt) Co. 1,271,875
------------------------------------------------------------------- -----------
FINANCE--1.5%
-------------------------------------------------------------------
16,000 Federal Home Loan Mortgage Corp. 896,000
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE QUALITY GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------------------------------------------------
HEALTHCARE--5.9%
-------------------------------------------------------------------
15,000 Abbott Laboratories $ 530,625
-------------------------------------------------------------------
39,000 Medtronic, Inc. 2,315,625
-------------------------------------------------------------------
15,000 United Healthcare Corp. 727,500
------------------------------------------------------------------- -----------
Total 3,573,750
------------------------------------------------------------------- -----------
INSURANCE--3.0%
-------------------------------------------------------------------
35,000 Cincinnati Financial Corp. 1,806,875
------------------------------------------------------------------- -----------
MANUFACTURING--5.2%
-------------------------------------------------------------------
80,000 Federal Signal Corp. 1,590,007
-------------------------------------------------------------------
38,200 Illinois Tool Works, Inc. 1,537,550
------------------------------------------------------------------- -----------
Total 3,127,557
------------------------------------------------------------------- -----------
MEDIA/PUBLISHING--7.0%
-------------------------------------------------------------------
30,000 Gannett Co., Inc. 1,526,250
-------------------------------------------------------------------
80,000 Interpublic Group Companies, Inc. 2,690,000
------------------------------------------------------------------- -----------
Total 4,216,250
------------------------------------------------------------------- -----------
OFFICE EQUIPMENT--3.0%
-------------------------------------------------------------------
58,000 Pitney Bowes, Inc. 1,790,750
------------------------------------------------------------------- -----------
OIL & GAS--11.3%
-------------------------------------------------------------------
50,000 Chevron Corp. 2,231,250
-------------------------------------------------------------------
35,000 Exxon Corp. 2,187,500
-------------------------------------------------------------------
28,000 Mobil Corp. 2,418,500
------------------------------------------------------------------- -----------
Total 6,837,250
------------------------------------------------------------------- -----------
RETAILING--5.0%
-------------------------------------------------------------------
50,000 Home Depot, Inc. 2,337,500
-------------------------------------------------------------------
20,000 May Department Stores Co. 702,500
------------------------------------------------------------------- -----------
Total 3,040,000
------------------------------------------------------------------- -----------
TELECOMMUNICATIONS--3.8%
-------------------------------------------------------------------
55,000 Alltel Corp. 1,560,625
-------------------------------------------------------------------
15,000 American Telephone & Telegraph Co. 748,125
------------------------------------------------------------------- -----------
Total 2,308,750
------------------------------------------------------------------- -----------
TRANSPORTATION--4.1%
-------------------------------------------------------------------
50,000 Union Pacific Corp. 2,512,500
------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $55,529,135) 59,146,182
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE QUALITY GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
*REPURCHASE AGREEMENT--2.2%
--------------------------------------------------------------------------------------
$1,333,000 Federated Master Repurchase Agreement Program, 5.70%, dated
1/31/95, due 2/1/95 (at amortized cost) $ 1,333,000
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $56,862,135) $60,479,182+
------------------------------------------------------------------- -----------
</TABLE>
* The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ The cost of investments for federal tax purposes amounts to $56,862,135 at
January 31, 1995. The net unrealized appreciation of investments on a federal
tax basis amounts to $3,617,047, which is comprised of $6,513,194 appreciation
and $2,896,147 depreciation at January 31, 1995.
Note: The categories of investments are shown as a percentage of net assets
($60,533,324) at January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
--------------------------------------------------------------------------------
Investments in securities, at value
(identified and tax cost, $56,862,135) $60,479,182
--------------------------------------------------------------------------------
Cash 346
--------------------------------------------------------------------------------
Income receivable 97,282
--------------------------------------------------------------------------------
Receivable for Fund shares sold 6,807
--------------------------------------------------------------------------------
Deferred expenses 13,085
-------------------------------------------------------------------------------- -----------
Total assets 60,596,702
--------------------------------------------------------------------------------
LIABILITIES:
--------------------------------------------------------------------------------
Payable for Fund shares redeemed $47,489
----------------------------------------------------------------------
Payable to Adviser 15,889
---------------------------------------------------------------------- -------
Total liabilities 63,378
-------------------------------------------------------------------------------- -----------
NET ASSETS for 6,088,691 shares of beneficial interest outstanding $60,533,324
-------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
Paid-in capital $61,193,108
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 3,617,047
--------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (4,348,379)
--------------------------------------------------------------------------------
Undistributed net investment income 71,548
-------------------------------------------------------------------------------- -----------
Total Net Assets $60,533,324
-------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($60,533,324 / 6,088,691 shares of beneficial interest outstanding) $9.94
-------------------------------------------------------------------------------- -----------
COMPUTATION OF OFFERING PRICE:
--------------------------------------------------------------------------------
Offering Price Per Share (100/95.5 of $9.94)* $10.41
-------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY GROWTH FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
-----------------------------------------------------------------------------------
Dividend income $ 762,406
-----------------------------------------------------------------------------------
Interest income 29,367
----------------------------------------------------------------------------------- ----------
Total investment income 791,773
-----------------------------------------------------------------------------------
EXPENSES:
-----------------------------------------------------------------------------------
Investment advisory fee $251,703
-----------------------------------------------------------------------
Administrative personnel and services fee 36,104
-----------------------------------------------------------------------
Custodian fees 5,228
-----------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees
and expenses 10,804
-----------------------------------------------------------------------
Legal fees 3,959
-----------------------------------------------------------------------
Auditing fees 5,664
-----------------------------------------------------------------------
Printing and postage 5,262
-----------------------------------------------------------------------
Fund share registration costs 4,023
-----------------------------------------------------------------------
Miscellaneous 5,419
----------------------------------------------------------------------- --------
Total expenses 328,166
-----------------------------------------------------------------------
Deduct--
-----------------------------------------------------------------------
Waiver of investment advisory fee $7,918
--------------------------------------------------------------
Waiver of custodian fees 5,228 13,146
-------------------------------------------------------------- ------ --------
Net expenses 315,020
----------------------------------------------------------------------------------- ----------
Net investment income 476,753
----------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
-----------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) 107,695
-----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments 1,303,368
----------------------------------------------------------------------------------- ----------
Net realized and unrealized gain (loss) on investments 1,411,063
----------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $1,887,816
----------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
-------------------------------------------------------
OPERATIONS--
-------------------------------------------------------
Net investment income $ 476,753 $ 1,021,043
-------------------------------------------------------
Net realized gain (loss) on investment transactions
($107,695 net gain and $1,768,644 net loss,
respectively, as computed for federal tax purposes) 107,695 (3,267,803)
-------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments 1,303,368 4,310,114
-----------
------------------------------------------------------- ---------------
Change in net assets resulting from operations 1,887,816 2,063,354
-----------
------------------------------------------------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
-------------------------------------------------------
Dividends to shareholders from net investment income (443,746) (1,021,043)
-------------------------------------------------------
Distributions in excess of net investment income -- (33,158)
-----------
------------------------------------------------------- ---------------
Change in net assets from distributions
to shareholders (443,746) (1,054,201)
-----------
------------------------------------------------------- ---------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
-------------------------------------------------------
Proceeds from sale of shares 8,153,808 18,459,017
-------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of dividends declared 403,523 999,178
-------------------------------------------------------
Cost of shares redeemed (19,115,990) (18,500,148)
-----------
------------------------------------------------------- ---------------
Change in net assets from Fund share transactions (10,558,659) 958,047
-----------
------------------------------------------------------- ---------------
Change in net assets (9,114,589) 1,967,200
-------------------------------------------------------
NET ASSETS:
-------------------------------------------------------
Beginning of period 69,647,913 67,680,713
-----------
------------------------------------------------------- ---------------
End of period (including undistributed net investment
income of $71,548 and $38,541, respectively) $ 60,533,324 $ 69,647,913
-----------
------------------------------------------------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE QUALITY GROWTH FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JULY 31,
JANUARY 31, 1995 -------------------
(UNAUDITED) 1994 1993*
---------------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.70 $9.54 $10.00
--------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
--------------------------------------------------------
Net investment income 0.07 0.13 0.10
--------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.24 0.17 (0.47)
-------------------------------------------------------- ---------- ------ ------
Total from investment operations 0.31 0.30 (0.37)
--------------------------------------------------------
LESS DISTRIBUTIONS
--------------------------------------------------------
Dividends to shareholders from net investment income (0.07) (0.13) (0.09)
--------------------------------------------------------
Distributions in excess of net investment income (a) -- (0.01) --
-------------------------------------------------------- ---------- ------ ------
Total distributions (0.07) (0.14) (0.09)
-------------------------------------------------------- ---------- ------ ------
NET ASSET VALUE, END OF PERIOD $9.94 $9.70 $9.54
-------------------------------------------------------- ---------- ------ ------
TOTAL RETURN** 3.20% 3.17% (3.73%)
--------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
--------------------------------------------------------
Expenses 1.00%(c) 1.00% 0.99%(c)
--------------------------------------------------------
Net investment income 1.50%(c) 1.42% 1.47%(c)
--------------------------------------------------------
Expense waiver/reimbursement (b) 0.04%(c) 0.03% 0.05%(c)
--------------------------------------------------------
SUPPLEMENTAL DATA
--------------------------------------------------------
Net assets, end of period (000 omitted) $ 60,533 $69,648 $67,681
--------------------------------------------------------
Portfolio turnover rate 1% 37% 28%
--------------------------------------------------------
</TABLE>
* Reflects operations for the period from November 20, 1992 (date of initial
public investment) to July 31, 1993.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) These distributions did not represent a return of capital for federal tax
purposes for the year ended July 31, 1994.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE MID CAP FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--88.1%
--------------------------------------------------------------------------------------
BANKING--3.8%
-------------------------------------------------------------------
37,000 Firstar Corp. $ 1,017,500
-------------------------------------------------------------------
8,000 Regions Financial Corp. 253,000
------------------------------------------------------------------- -----------
Total 1,270,500
------------------------------------------------------------------- -----------
BUILDING MATERIALS--0.9%
-------------------------------------------------------------------
9,000 Valspar Corp. 302,625
------------------------------------------------------------------- -----------
CHEMICALS--9.6%
-------------------------------------------------------------------
26,100 Crompton & Knowles Corp. 440,437
-------------------------------------------------------------------
20,000 Loctite Corp. 895,000
-------------------------------------------------------------------
58,000 RPM, Inc. 1,073,000
-------------------------------------------------------------------
24,000 Sigma Aldrich Corp. 858,000
------------------------------------------------------------------- -----------
Total 3,266,437
------------------------------------------------------------------- -----------
COMMERCIAL SERVICES--3.2%
-------------------------------------------------------------------
31,000 Cintas Corp. 1,069,500
------------------------------------------------------------------- -----------
COMPUTER SOFTWARE SERVICES--6.4%
-------------------------------------------------------------------
18,000 * Electronic Arts 321,750
-------------------------------------------------------------------
9,000 First Data Corp. 453,375
-------------------------------------------------------------------
45,224 * Fiserv, Inc. 975,143
-------------------------------------------------------------------
11,250 Paychex, Inc. 438,750
------------------------------------------------------------------- -----------
Total 2,189,018
------------------------------------------------------------------- -----------
DISTRIBUTION/WHOLESALE--2.4%
-------------------------------------------------------------------
17,750 Cardinal Health, Inc. 818,719
------------------------------------------------------------------- -----------
ELECTRICAL EQUIPMENT--2.6%
-------------------------------------------------------------------
15,000 W.W. Grainger, Inc. 894,375
------------------------------------------------------------------- -----------
ELECTRONICS--7.8%
-------------------------------------------------------------------
22,000 * Adaptec, Inc. 602,250
-------------------------------------------------------------------
13,000 Diebold, Inc. 446,875
-------------------------------------------------------------------
16,000 Premier Industrial Corp. 370,000
-------------------------------------------------------------------
25,000 * Vishay Intertechnologies, Inc. 1,243,750
------------------------------------------------------------------- -----------
Total 2,662,875
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE MID CAP FUND
--------------------------------------------------------------------------------
<TABLE>
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------------------------------------------------
<CAPTION>
SHARES VALUE
---------- -----------
-------------------------------------------------------------------
<C> <C> <S> <C>
FINANCIAL SERVICES--2.1%
-------------------------------------------------------------------
20,000 United Asset Management $ 717,500
------------------------------------------------------------------- -----------
FOOD--PROCESSING--2.8%
-------------------------------------------------------------------
43,000 McCormick & Co., Inc. 940,625
------------------------------------------------------------------- -----------
HOUSEHOLD PRODUCTS/WARES--2.1%
-------------------------------------------------------------------
17,000 Newell Co. 720,000
------------------------------------------------------------------- -----------
INSURANCE--8.5%
-------------------------------------------------------------------
20,000 Cincinnati Financial Corp. 1,032,500
-------------------------------------------------------------------
24,000 Equitable of Iowa Co. 708,000
-------------------------------------------------------------------
31,500 MGIC Investment Corp. 1,141,875
------------------------------------------------------------------- -----------
Total 2,882,375
------------------------------------------------------------------- -----------
IRON/STEEL--1.6%
-------------------------------------------------------------------
29,000 Allegheny Ludlum Corp. 558,250
------------------------------------------------------------------- -----------
MANUFACTURING--8.2%
-------------------------------------------------------------------
16,000 Federal Signal Corp. 318,000
-------------------------------------------------------------------
29,000 TriMas Corp. 569,125
-------------------------------------------------------------------
30,000 Wabash National Corp. 1,042,500
-------------------------------------------------------------------
43,000 Watts Industries, Class A 860,000
------------------------------------------------------------------- -----------
Total 2,789,625
------------------------------------------------------------------- -----------
MEDIA PUBLISHING--3.3%
-------------------------------------------------------------------
33,000 Interpublic Group Companies, Inc. 1,109,625
------------------------------------------------------------------- -----------
MEDICAL SUPPLIES--3.5%
-------------------------------------------------------------------
20,000 Medtronic, Inc. 1,187,500
------------------------------------------------------------------- -----------
OIL--ENERGY--1.7%
-------------------------------------------------------------------
21,000 Questar Corp. 561,750
------------------------------------------------------------------- -----------
PAPER & FOREST PRODUCTS--1.0%
-------------------------------------------------------------------
16,500 Wausau Paper Mills Co. 342,375
------------------------------------------------------------------- -----------
RETAIL--GENERAL--2.4%
-------------------------------------------------------------------
25,000 Dollar General Corp. 806,250
------------------------------------------------------------------- -----------
TRANSPORTATION--3.4%
-------------------------------------------------------------------
45,000 Comair Holdings, Inc. 787,500
-------------------------------------------------------------------
9,000 GATX Corp. 366,750
------------------------------------------------------------------- -----------
Total 1,154,250
------------------------------------------------------------------- -----------
TRUCKING & LEASING--3.7%
-------------------------------------------------------------------
33,000 Arnold Industries, Inc. 618,750
-------------------------------------------------------------------
26,000 Werner Enterprises, Inc. 650,000
------------------------------------------------------------------- -----------
Total 1,268,750
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE MID CAP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------------------------------------------------
TELECOMMUNICATIONS--7.1%
-------------------------------------------------------------------
28,000 Alltel Corp. $ 794,500
-------------------------------------------------------------------
21,000 Century Telephone Enterprises, Inc. 661,500
-------------------------------------------------------------------
18,000 * DSC Communications Corp. 578,250
-------------------------------------------------------------------
18,000 * LDDS Communications 391,500
------------------------------------------------------------------- -----------
Total 2,425,750
------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $28,344,027) 29,938,674
------------------------------------------------------------------- -----------
**REPURCHASE AGREEMENT--11.9%
--------------------------------------------------------------------------------------
$4,047,000 Federated Master Repurchase Agreement Program, 5.70%, dated
1/31/1995, due 2/1/1995 (AT AMORTIZED COST) 4,047,000
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $32,391,027) $33,985,674+
------------------------------------------------------------------- -----------
</TABLE>
* Non-income producing security.
** The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ The cost of investments for federal tax purposes amounts to $32,391,027 at
January 31, 1995. The net unrealized appreciation of investments on a federal
tax basis amounts to $1,594,647 which is comprised of $3,599,705 appreciation
and $2,005,058 depreciation at January 31, 1995.
Note: The categories of investments are shown as a percentage of net assets
($33,983,501) at January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE MID CAP FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
---------------------------------------------------------------------------------
Investment in repurchase agreement $ 4,047,000
-------------------------------------------------------------------
Investments in securities 29,938,674
------------------------------------------------------------------- -----------
Total investments, at value (identified and tax cost, $32,391,027) $33,985,674
---------------------------------------------------------------------------------
Cash 645
---------------------------------------------------------------------------------
Income receivable 27,152
---------------------------------------------------------------------------------
Receivable for Fund shares sold 5,835
---------------------------------------------------------------------------------
Deferred expenses 6,899
--------------------------------------------------------------------------------- -----------
Total assets 34,026,205
---------------------------------------------------------------------------------
LIABILITIES:
---------------------------------------------------------------------------------
Payable for Fund shares redeemed 19,474
-------------------------------------------------------------------
Payable to Adviser 4,247
-------------------------------------------------------------------
Accrued expenses 18,983
------------------------------------------------------------------- -----------
Total liabilities 42,704
--------------------------------------------------------------------------------- -----------
NET ASSETS for 3,258,319 shares of beneficial interest outstanding $33,983,501
--------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
---------------------------------------------------------------------------------
Paid-in capital $32,788,255
---------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 1,594,647
---------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (424,905)
---------------------------------------------------------------------------------
Undistributed net investment income 25,504
--------------------------------------------------------------------------------- -----------
Total Net Assets $33,983,501
--------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($33,983,501 / 3,258,319 shares of beneficial interest outstanding) $10.43
--------------------------------------------------------------------------------- -----------
COMPUTATION OF OFFERING PRICE:
---------------------------------------------------------------------------------
Offering Price Per Share (100/95.5 of $10.43)* $10.92
--------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE MID CAP FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
-----------------------------------------------------------------------------------
Dividend income $ 215,790
-----------------------------------------------------------------------------------
Interest income 47,329
----------------------------------------------------------------------------------- ----------
Total investment income 263,119
-----------------------------------------------------------------------------------
EXPENSES:
-----------------------------------------------------------------------------------
Investment advisory fee $124,936
-----------------------------------------------------------------------
Administrative personnel and services fee 25,208
-----------------------------------------------------------------------
Custodian fees 6,750
-----------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees
and expenses 14,967
-----------------------------------------------------------------------
Legal fees 3,357
-----------------------------------------------------------------------
Auditing fees 7,313
-----------------------------------------------------------------------
Printing and postage 10,312
-----------------------------------------------------------------------
Fund share registration costs 4,909
-----------------------------------------------------------------------
Miscellaneous 3,360
----------------------------------------------------------------------- --------
Total expenses 201,112
-----------------------------------------------------------------------
Deduct--
-----------------------------------------------------------------------
Waiver of investment advisory fee $38,260
-------------------------------------------------------------
Waiver of custodian fees 6,750 45,010
------------------------------------------------------------- ------- --------
Net expenses 156,102
----------------------------------------------------------------------------------- ----------
Net investment income 107,017
----------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
-----------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) 437,134
-----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments 587,050
----------------------------------------------------------------------------------- ----------
Net realized and unrealized gain (loss) on investments 1,024,184
----------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $1,131,201
----------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE MID CAP FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
-------------------------------------------------------
OPERATIONS--
-------------------------------------------------------
Net investment income $ 107,017 $ 166,063
-------------------------------------------------------
Net realized gain (loss) on investment transactions
($437,134 and $155,006 net gain and net loss,
respectively, as computed for federal tax purposes) 437,134 (597,566)
-------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments 587,050 1,578,568
-----------
------------------------------------------------------- --------------
Change in net assets resulting from operations 1,131,201 1,147,065
-----------
------------------------------------------------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
-------------------------------------------------------
Dividends to shareholders from net investment income (81,513) (166,063)
-------------------------------------------------------
Distributions in excess of net investment income -- (20,098)
-----------
------------------------------------------------------- --------------
Change in net assets from distributions to
shareholders (81,513) (186,161)
-----------
------------------------------------------------------- --------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
-------------------------------------------------------
Proceeds from sale of shares 8,411,918 10,943,437
-------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of dividends declared 75,232 170,509
-------------------------------------------------------
Cost of shares redeemed (5,763,192) (5,884,456)
-----------
------------------------------------------------------- --------------
Change in net assets from Fund share transactions 2,723,958 5,229,490
-----------
------------------------------------------------------- --------------
Change in net assets 3,773,646 6,190,394
-------------------------------------------------------
NET ASSETS:
-------------------------------------------------------
Beginning of period 30,209,855 24,019,461
-----------
------------------------------------------------------- --------------
End of period (including undistributed net investment
income of $25,504 and $0, respectively) $ 33,983,501 $30,209,855
-----------
------------------------------------------------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE MID CAP FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JULY 31,
JANUARY 31, 1995 ---------------------
(UNAUDITED) 1994 1993*
---------------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.10 $ 9.68 $10.00
------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
------------------------------------------------
Net investment income 0.04 0.06 0.06
------------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.32 0.43 (0.33)
------------------------------------------------ ---------- ------ ------
Total from investment operations 0.36 0.49 (0.27)
------------------------------------------------
LESS DISTRIBUTIONS
------------------------------------------------
Dividends to shareholders from net investment
income (0.03) (0.06) (0.05)
------------------------------------------------
Distributions in excess of net investment
income(a) -- (0.01) --
------------------------------------------------ ---------- ------ ------
Total distributions (0.03) (0.07) (0.05)
------------------------------------------------ ---------- ------ ------
NET ASSET VALUE, END OF PERIOD $10.43 $10.10 $ 9.68
------------------------------------------------ ---------- ------ ------
TOTAL RETURN** 3.55% 5.07% (2.73%)
------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
------------------------------------------------
Expenses 1.00%(c) 1.00% 0.99%(c)
------------------------------------------------
Net investment income 0.69%(c) 0.60% 0.88%(c)
------------------------------------------------
Expense waiver/reimbursement(b) 0.29%(c) 0.33% 0.40%(c)
------------------------------------------------
SUPPLEMENTAL DATA
------------------------------------------------
Net assets, end of period (000 omitted) $ 33,984 $30,210 $24,019
------------------------------------------------
Portfolio turnover rate 12% 44% 20%
------------------------------------------------
</TABLE>
* Reflects operations for the period from November 20, 1992 (date of initial
public investment) to July 31, 1993.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) These distributions did not represent a return of capital for federal tax
purposes for the year ended July 31, 1994.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE BALANCED FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--70.2%
--------------------------------------------------------------------------------------
AGRICULTURE--0.8%
-------------------------------------------------------------------
11,000 Pioneer Hi-Bred International, Inc. $ 404,250
------------------------------------------------------------------- -----------
BANKING--2.2%
-------------------------------------------------------------------
40,000 Firstar Corp. 1,100,000
------------------------------------------------------------------- -----------
BUILDING MATERIALS--3.7%
-------------------------------------------------------------------
35,000 Masco Corp. 818,125
-------------------------------------------------------------------
30,000 Sherwin Williams Co. 1,005,000
------------------------------------------------------------------- -----------
Total 1,823,125
------------------------------------------------------------------- -----------
CHEMICALS--4.6%
-------------------------------------------------------------------
30,000 Air Products & Chemicals, Inc. 1,338,750
-------------------------------------------------------------------
40,000 RPM, Inc. 740,000
-------------------------------------------------------------------
5,000 Sigma-Aldrich Corp. 178,750
------------------------------------------------------------------- -----------
Total 2,257,500
------------------------------------------------------------------- -----------
COMPUTER SOFTWARE SERVICES--4.2%
-------------------------------------------------------------------
20,000 Automatic Data Processing, Inc. 1,185,000
-------------------------------------------------------------------
20,000 * Fiserv, Inc. 431,250
-------------------------------------------------------------------
8,000 * Microsoft Corp. 475,000
------------------------------------------------------------------- -----------
Total 2,091,250
------------------------------------------------------------------- -----------
CONSUMER PRODUCTS--3.0%
-------------------------------------------------------------------
35,000 Newell Co. 787,500
-------------------------------------------------------------------
11,000 Procter & Gamble Co. 717,750
------------------------------------------------------------------- -----------
Total 1,505,250
------------------------------------------------------------------- -----------
ELECTRICAL EQUIPMENT--7.8%
-------------------------------------------------------------------
23,000 Emerson Electric Co. 1,449,000
-------------------------------------------------------------------
33,000 General Electric Co. 1,699,500
-------------------------------------------------------------------
12,000 W.W. Grainger, Inc. 715,500
------------------------------------------------------------------- -----------
Total 3,864,000
------------------------------------------------------------------- -----------
ELECTRONICS--4.5%
-------------------------------------------------------------------
26,000 Intel Corp. 1,803,750
-------------------------------------------------------------------
11,000 Loral Corp. 427,625
------------------------------------------------------------------- -----------
Total 2,231,375
------------------------------------------------------------------- -----------
ENTERTAINMENT--1.6%
-------------------------------------------------------------------
16,000 Disney (Walt) Co. 814,000
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE BALANCED FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------------------------------------------------
FINANCE--1.7%
-------------------------------------------------------------------
9,000 Federal Home Loan Mortgage Corp. $ 504,000
-------------------------------------------------------------------
10,000 United Asset Management 358,750
------------------------------------------------------------------- -----------
Total 862,750
------------------------------------------------------------------- -----------
HEALTH CARE--4.9%
-------------------------------------------------------------------
11,000 Abbott Laboratories 389,125
-------------------------------------------------------------------
25,000 Medtronic, Inc. 1,484,375
-------------------------------------------------------------------
12,000 United Healthcare Corp. 582,000
------------------------------------------------------------------- -----------
Total 2,455,500
------------------------------------------------------------------- -----------
INSURANCE--2.1%
-------------------------------------------------------------------
20,000 Cincinnati Financial Corp. 1,032,500
------------------------------------------------------------------- -----------
MANUFACTURING--5.1%
-------------------------------------------------------------------
30,000 Federal Signal Corp. 596,256
-------------------------------------------------------------------
20,000 Illinois Tool Works, Inc. 805,000
-------------------------------------------------------------------
7,700 TriMas Corp. 151,113
-------------------------------------------------------------------
16,000 Wabash National Corp. 556,000
-------------------------------------------------------------------
20,000 Watts Industries 400,000
------------------------------------------------------------------- -----------
Total 2,508,369
------------------------------------------------------------------- -----------
MEDIA/PUBLISHING--4.2%
-------------------------------------------------------------------
15,000 Gannett Co., Inc. 763,125
-------------------------------------------------------------------
40,000 Interpublic Group Companies, Inc. 1,345,000
------------------------------------------------------------------- -----------
Total 2,108,125
------------------------------------------------------------------- -----------
OFFICE EQUIPMENT--2.2%
-------------------------------------------------------------------
36,000 Pitney Bowes, Inc. 1,111,500
------------------------------------------------------------------- -----------
OIL/GAS--8.0%
-------------------------------------------------------------------
22,600 Chevron Corp. 1,008,525
-------------------------------------------------------------------
23,000 Exxon Corp. 1,437,500
-------------------------------------------------------------------
15,000 Mobil Corp. 1,295,625
-------------------------------------------------------------------
8,000 Questar Corp. 214,000
------------------------------------------------------------------- -----------
Total 3,955,650
------------------------------------------------------------------- -----------
RETAILING--3.5%
-------------------------------------------------------------------
30,000 Home Depot, Inc. 1,402,500
-------------------------------------------------------------------
10,000 May Department Stores Co. 351,250
------------------------------------------------------------------- -----------
Total 1,753,750
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE BALANCED FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------------------------------------------------
TELECOMMUNICATIONS--3.0%
-------------------------------------------------------------------
28,600 Alltel Corp. $ 811,525
-------------------------------------------------------------------
7,000 American Telephone & Telegraph Co. 349,125
-------------------------------------------------------------------
16,000 * LDDS Communications 348,000
------------------------------------------------------------------- -----------
Total 1,508,650
------------------------------------------------------------------- -----------
TRANSPORTATION--3.1%
-------------------------------------------------------------------
31,000 Union Pacific Corp. 1,557,750
------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $33,224,760) 34,945,294
------------------------------------------------------------------- -----------
CORPORATE BONDS--7.3%
--------------------------------------------------------------------------------------
BANKING--0.1%
-------------------------------------------------------------------
$ 46,000 Bankers Trust NY Corp., 9.20%, 7/15/1999 47,396
------------------------------------------------------------------- -----------
FINANCIAL--3.6%
-------------------------------------------------------------------
500,000 Associates Corp. N.A., 8.15%, 8/1/2009 513,267
-------------------------------------------------------------------
250,000 Bear Stearns Floating Rate Note, 7.69%, 1/14/1999 249,765
-------------------------------------------------------------------
500,000 Ford Motor Credit Corp. Floating Rate Note, 6.86%, 11/9/1998 499,470
-------------------------------------------------------------------
500,000 Pitney Bowes Credit Corp., 8.55%, 9/15/2009 527,802
------------------------------------------------------------------- -----------
Total 1,790,304
------------------------------------------------------------------- -----------
INTERNATIONAL--2.3%
-------------------------------------------------------------------
93,000 Deutsche Bank Financial Medium-Term Note, 9.28%, 5/31/1999 97,115
-------------------------------------------------------------------
500,000 New Zealand Government, 8.75%, 12/15/2006 522,055
-------------------------------------------------------------------
500,000 Norsk Hydro, 9.00%, 4/15/2012 519,047
------------------------------------------------------------------- -----------
Total 1,138,217
------------------------------------------------------------------- -----------
RETAIL--1.1%
-------------------------------------------------------------------
500,000 Dayton Hudson Co. Medium-Term Note, 9.35%, 6/16/2020 557,055
------------------------------------------------------------------- -----------
TRANSPORTATION--0.2%
-------------------------------------------------------------------
85,861 CSX Transportation Corp., 8.41%, 3/1/2006 87,107
------------------------------------------------------------------- -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST, $3,656,031) 3,620,079
------------------------------------------------------------------- -----------
MORTGAGE BACKED SECURITIES--9.9%
--------------------------------------------------------------------------------------
GOVERNMENT AGENCY--6.6%
-------------------------------------------------------------------
625,000 Federal Home Loan Mortgage Corp., Series 1206-H, 7.00%, 3/15/2021 561,269
-------------------------------------------------------------------
23,804 Federal Home Loan Mortgage Corp., Series 27-2525, 8.00%, 8/1/2008 23,276
-------------------------------------------------------------------
461,410 Federal Home Loan Mortgage Corp., Series 1143-H, 8.00%, 8/15/2019 462,974
-------------------------------------------------------------------
500,000 Federal Home Loan Mortgage Corp., Series 77-F, 8.50%, 6/15/2017 503,560
-------------------------------------------------------------------
12,789 Federal Home Loan Mortgage Corp., Series 39-0009, 9.50%, 10/1/2002 13,106
-------------------------------------------------------------------
400,000 Federal National Mortgage Association, Series 93-32B, 2.00%,
5/25/2011 384,292
-------------------------------------------------------------------
</TABLE>
FOUNTAIN SQUARE BALANCED FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
MORTGAGE BACKED SECURITIES--CONTINUED
--------------------------------------------------------------------------------------
GOVERNMENT AGENCY--CONTINUED
-------------------------------------------------------------------
$ 441,480 Federal National Mortgage Association, Series 1992-43B, 7.50%,
11/25/2018 $ 437,780
-------------------------------------------------------------------
500,000 Federal National Mortgage Association, Series G92-35E, 7.50%,
7/25/2022 449,070
-------------------------------------------------------------------
500,000 Federal National Mortgage Association, Series 1994-95-EG, 8.00%,
3/25/2024 463,235
------------------------------------------------------------------- -----------
Total 3,298,562
------------------------------------------------------------------- -----------
PRIVATE LABEL CMOS--3.3%
-------------------------------------------------------------------
500,000 GE Capital Mortgage Service, Series 1993-2F, 7.00%, 11/25/2007 444,864
-------------------------------------------------------------------
250,000 Prudential Funding Corp., Series 14-F, 8.40%, 3/20/2005 249,333
-------------------------------------------------------------------
500,000 Prudential Home Mortgage Securities Corp., Series 1993-9, Class
A10, 7.05% 3/25/2008 455,953
-------------------------------------------------------------------
500,000 Prudential Home Mortgage Securities Corp., Series 1994-30, Class
A7, 8.25% 10/25/2024 486,795
------------------------------------------------------------------- -----------
Total 1,636,945
------------------------------------------------------------------- -----------
TOTAL MORTGAGE BACKED SECURITIES (IDENTIFIED COST, $5,038,791) 4,935,507
------------------------------------------------------------------- -----------
GOVERNMENT SECURITIES--10.2%
--------------------------------------------------------------------------------------
GOVERNMENT AGENCY--4.2%
-------------------------------------------------------------------
1,325,000 Federal Home Loan Bank, 7.70%-7.81%, 7/17/1996-12/16/1996 1,333,619
-------------------------------------------------------------------
700,000 Federal Home Loan Mortgage Corp., 7.69%-7.81%, 12/16/1996-4/13/2009 693,576
-------------------------------------------------------------------
63,464 Student Loan Marketing Association, 9.40%, 5/31/2002 68,931
------------------------------------------------------------------- -----------
Total 2,096,126
------------------------------------------------------------------- -----------
U.S. TREASURY BOND--1.7%
-------------------------------------------------------------------
900,000 7.50%, 11/15/2016 871,875
------------------------------------------------------------------- -----------
U.S. TREASURY NOTES--4.3%
-------------------------------------------------------------------
100,000 7.25%, 8/15/2004 97,500
-------------------------------------------------------------------
39,000 7.50%, 5/15/2002 38,854
-------------------------------------------------------------------
52,000 7.75%, 2/15/1995 52,032
-------------------------------------------------------------------
1,000,000 7.75%, 1/31/2000 1,008,750
-------------------------------------------------------------------
26,000 8.375%, 4/15/1995 26,106
-------------------------------------------------------------------
26,000 8.50%, 5/15/1995 26,162
-------------------------------------------------------------------
200,000 8.625%, 10/15/1995 202,625
-------------------------------------------------------------------
93,000 8.75%, 8/15/2000 97,970
-------------------------------------------------------------------
186,000 8.875%, 2/15/1996 189,487
-------------------------------------------------------------------
186,000 9.00%, 5/15/1998 194,138
-------------------------------------------------------------------
186,000 9.25%, 8/15/1998 196,114
------------------------------------------------------------------- -----------
Total 2,129,738
------------------------------------------------------------------- -----------
TOTAL GOVERNMENT SECURITIES (IDENTIFIED COST, $5,167,955) 5,097,739
------------------------------------------------------------------- -----------
</TABLE>
FOUNTAIN SQUARE BALANCED FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
**REPURCHASE AGREEMENT--3.1%
--------------------------------------------------------------------------------------
$1,563,000 Federated Master Repurchase Agreement Program, 5.70%, dated
1/31/1995, due 2/1/1995
(at amortized cost) $ 1,563,000
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $48,650,537) $50,161,619+
------------------------------------------------------------------- -----------
</TABLE>
* Non-income producing security.
** The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ The cost of investments for federal tax purposes amounts to $48,650,537 at
January 31, 1995. The net unrealized appreciation of investments on a federal
tax basis amounts to $1,511,082, which is comprised of $3,706,990
appreciation and $2,195,908 depreciation at January 31, 1995.
Note: The categories of investments are shown as a percentage of net assets
($49,751,733) at January 31, 1995.
The following abbreviation is used in this portfolio:
CMOs--Collateralized Mortgage Obligations
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
--------------------------------------------------------------------------------
Investments in securities, at value (identified and tax cost, $48,650,537) $50,161,619
--------------------------------------------------------------------------------
Income receivable 237,158
--------------------------------------------------------------------------------
Receivable for Fund shares sold 22,913
--------------------------------------------------------------------------------
Deferred expenses 9,471
-------------------------------------------------------------------------------- -----------
Total assets 50,431,161
--------------------------------------------------------------------------------
LIABILITIES:
--------------------------------------------------------------------------------
Payable for investments purchased $544,589
---------------------------------------------------------------------
Payable for Fund shares redeemed 127,404
---------------------------------------------------------------------
Accrued expenses 7,435
--------------------------------------------------------------------- --------
Total liabilities 679,428
-------------------------------------------------------------------------------- -----------
NET ASSETS for 5,080,730 shares of beneficial interest outstanding $49,751,733
-------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
Paid-in capital $51,426,433
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 1,511,082
--------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (3,303,003)
--------------------------------------------------------------------------------
Undistributed net investment income 117,221
-------------------------------------------------------------------------------- -----------
Total Net Assets $49,751,733
-------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($49,751,733 / 5,080,730 shares of beneficial interest outstanding) $9.79
-------------------------------------------------------------------------------- -----------
COMPUTATION OF OFFERING PRICE:
--------------------------------------------------------------------------------
Offering Price Per Share (100/95.5 of $9.79)* $10.25
-------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE BALANCED FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
-----------------------------------------------------------------------------------
Interest income $ 588,366
-----------------------------------------------------------------------------------
Dividend income 437,136
----------------------------------------------------------------------------------- ----------
Total investment income 1,025,502
-----------------------------------------------------------------------------------
EXPENSES:
-----------------------------------------------------------------------------------
Investment advisory fee $213,922
-----------------------------------------------------------------------
Administrative personnel and services fee 30,662
-----------------------------------------------------------------------
Custodian fees 9,804
-----------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees
and expenses 9,652
-----------------------------------------------------------------------
Legal fees 1,703
-----------------------------------------------------------------------
Auditing fees 5,002
-----------------------------------------------------------------------
Printing and postage 4,681
-----------------------------------------------------------------------
Fund share registration costs 4,635
-----------------------------------------------------------------------
Miscellaneous 2,542
----------------------------------------------------------------------- --------
Total expenses 282,603
-----------------------------------------------------------------------
Deduct--
-----------------------------------------------------------------------
Waiver of investment advisory fee $5,168
--------------------------------------------------------------
Waiver of custodian fees 9,804 14,972
-------------------------------------------------------------- ------ --------
Net expenses 267,631
----------------------------------------------------------------------------------- ----------
Net investment income 757,871
----------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
-----------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions (identified cost basis) (335,554)
-----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments 695,317
----------------------------------------------------------------------------------- ----------
Net realized and unrealized gain (loss) on investments 359,763
----------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $1,117,634
----------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE BALANCED FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
----------------------------------------------------------
OPERATIONS--
----------------------------------------------------------
Net investment income $ 757,871 $ 1,656,533
----------------------------------------------------------
Net realized gain (loss) on investment transactions
($335,554 and $976,092 net loss, respectively, as computed
for
federal tax purposes) (335,554) (2,310,618)
----------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments 695,317 1,737,583
---------------------------------------------------------- --------------- ------------
Change in net assets resulting from operations 1,117,634 1,083,498
---------------------------------------------------------- --------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS--
----------------------------------------------------------
Dividends to shareholders from net investment income (700,621) (1,656,533)
----------------------------------------------------------
Distributions in excess of net investment income -- (120,302)
---------------------------------------------------------- --------------- ------------
Change in net assets from distributions to
shareholders (700,621) (1,776,835)
---------------------------------------------------------- --------------- ------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
----------------------------------------------------------
Proceeds from sale of shares 5,315,779 18,128,975
----------------------------------------------------------
Net asset value of shares issued to shareholders in
payment
of dividends declared 677,557 1,735,648
----------------------------------------------------------
Cost of shares redeemed (16,021,382) (19,976,817)
---------------------------------------------------------- --------------- ------------
Change in net assets from Fund share transactions (10,028,046) (112,194)
---------------------------------------------------------- --------------- ------------
Change in net assets (9,611,033) (805,531)
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Beginning of period 59,362,766 60,168,297
---------------------------------------------------------- --------------- ------------
End of period (including undistributed net investment
income of $117,221 and $59,971, respectively) $ 49,751,733 $ 59,362,766
---------------------------------------------------------- --------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
47
FOUNTAIN SQUARE BALANCED FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JULY 31,
JANUARY 31, 1995 ---------------------
(UNAUDITED) 1994 1993*
---------------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.70 $9.78 $10.00
------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
------------------------------------------------
Net investment income 0.14 0.26 0.20
------------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.08 (0.06) (0.25)
------------------------------------------------ --------- ----- -----
Total from investment operations 0.22 0.20 (0.05)
------------------------------------------------
LESS DISTRIBUTIONS
------------------------------------------------
Dividends to shareholders from net investment
income (0.13) (0.26) (0.17)
------------------------------------------------
Distributions in excess of net investment
income(a) -- (0.02) --
------------------------------------------------ --------- ----- -----
Total distributions (0.13) (0.28) (0.17)
------------------------------------------------ --------- ----- -----
NET ASSET VALUE, END OF PERIOD $9.79 $9.70 $9.78
------------------------------------------------ --------- ----- -----
TOTAL RETURN** 2.26% 2.02% (0.51%)
------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
------------------------------------------------
Expenses 1.00%(c) 1.00% 1.00%(c)
------------------------------------------------
Net investment income 2.84%(c) 2.64% 3.04%(c)
------------------------------------------------
Expense waiver/reimbursement(b) 0.06%(c) 0.06% 0.08%(c)
------------------------------------------------
SUPPLEMENTAL DATA
------------------------------------------------
Net assets, end of period (000 omitted) $ 49,752 $59,363 $60,168
------------------------------------------------
Portfolio turnover rate 27% 53% 30%
------------------------------------------------
</TABLE>
* Reflects operations for the period from November 20, 1992 (date of initial
public investment) to July 31, 1993.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) These distributions did not represent a return of capital for federal tax
purposes for the year ended July 31, 1994.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) ORGANIZATION
Fountain Square Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end management investment
company. The Trust consists of nine diversified portfolios and one
non-diversified portfolio.
The financial statements of the following portfolios (individually referred to
as the "Fund" or collectively as the "Funds") are presented herein:
<TABLE>
<CAPTION>
PORTFOLIO NAME
----------------------------------------------------------------------
<S> <C>
Fountain Square U.S. Government Securities Fund ("Government Fund")
Fountain Square Quality Bond Fund ("Bond Fund")
Fountain Square Ohio Tax Free Bond Fund ("Ohio Tax Free Fund")
Fountain Square Quality Growth Fund ("Growth Fund")
Fountain Square Mid Cap Fund ("Mid Cap Fund")
Fountain Square Balanced Fund ("Balanced Fund")
</TABLE>
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--Municipal bonds are valued by an independent pricing service,
taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type
of issue, and any other factors or market data the pricing service deems relevant in
determining valuations for normal institutional size trading units of debt securities.
The independent pricing service does not rely exclusively on quoted prices.
Listed equity securities, and other fixed income and asset backed securities are valued
at the last sale price reported on national securities exchanges. Listed corporate bonds,
unlisted securities and short-term securities are valued at the prices provided by an
independent pricing service. U.S. Government securities are generally valued at the mean
between the over-the-counter bid and asked prices as furnished by an independent pricing
service. Short-term securities with remaining maturities of sixty days may be valued at
amortized cost, which approximates fair market value. Investments in other open-end
investment companies are valued at net asset value.
B. REPURCHASE AGREEMENTS--It is the policy of the Funds to require the custodian bank to
take possession, to have legally segregated in the Federal Reserve Book Entry System, or
to have segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been established
by the Funds to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least equals the
repurchase price to be paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other recognized
financial institutions, such as broker/dealers, which are deemed by the Trust's adviser
to be creditworthy pursuant to guidelines and/or standards reviewed or established by the
Board of Trustees (the "Trustees").
</TABLE>
FOUNTAIN SQUARE FUNDS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Risks may arise from the potential inability of counterparties to honor the terms of the
repurchase agreement. Accordingly, the Funds could receive less than the repurchase price
on the sale of collateral securities.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income and expenses are
accrued daily. Bond premium and discount, if applicable, are amortized as required by the
Internal Revenue Code, as amended (the "Code").
Income and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles. These
distributions did not represent a return of capital for the year ended July 31, 1994 for
federal income tax purposes. Amounts as of July 31, 1994 for the Mid Cap Fund have been
reclassified to paid-in capital from undistributed net investment income in accordance
with SOP 93-2. Net investment income, net realized gains, and net assets were not
affected by this change.
D. FEDERAL TAXES--It is the Funds' policy to comply with the provisions of the Code
applicable to regulated investment companies and to distribute to shareholders each year
substantially all of their income. Accordingly, no provisions for federal tax are
necessary. Additionally, net capital losses in the Bond Fund, Ohio Tax Free Fund,
Government Fund, Growth Fund, Mid Cap Fund and Balanced Fund of $2,178,575, $32,680,
$525,464, $2,687,430, $707,033 and $1,991,356, respectively, attributable to security
transactions incurred after October 31, 1993 are treated as arising on the first day
(August 1, 1994) of the Funds' taxable year.
At July 31, 1994, the Growth Fund and Mid Cap Fund, for federal tax purposes, had capital
loss carryforwards of $1,768,644 and $155,006, respectively, which will reduce the Funds'
taxable income arising from future net realized gain on investments, if any, to the
extent permitted by the Code, and thus will reduce the amount of the distributions to
shareholders which would otherwise be necessary to relieve the Funds of any liability for
federal tax. Pursuant to the Code, such capital loss carryforwards will expire in 2002.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in when-issued or
delayed delivery transactions. The Funds record when-issued securities on the trade date
and maintain security positions such that sufficient liquid assets will be available to
make payment for the securities purchased. Securities purchased on a when-issued or
delayed delivery basis are marked to market daily and begin earning interest on the
settlement date.
F. DEFERRED EXPENSES--The costs incurred by each Fund with respect to registration of their
shares in their first fiscal year, excluding the initial expense of registering their
shares, have been deferred and are being amortized using the straight-line method not to
exceed a period of five years from each Fund's commencement date.
G. OTHER--Investment transactions are accounted for on the trade date.
</TABLE>
FOUNTAIN SQUARE FUNDS
--------------------------------------------------------------------------------
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
GOVERNMENT FUND
------------------------ BOND FUND OHIO TAX FREE FUND
------------------------ ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31
1995 1994 1995 1994 1995 1994
------------------------------------------ ----------- ---------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 247,742 1,949,249 741,384 2,283,996 567,092 2,299,130
-----------------------------------------
Shares issued to shareholders in payment
of dividends declared 70,595 190,255 127,478 237,976 38,512 48,131
-----------------------------------------
Shares redeemed (974,265) (2,020,499) (917,863) (1,262,911) (373,592) (719,852)
----------------------------------------- --------- -------- --------- -------- --------- --------
Net change resulting from Fund share
transactions (655,928) 119,005 (49,001) 1,259,061 232,012 1,627,409
----------------------------------------- --------- -------- --------- -------- --------- --------
</TABLE>
<TABLE>
<CAPTION>
GROWTH FUND
------------------------ MID CAP FUND BALANCED FUND
------------------------ ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1995 1994 1995 1994 1995 1994
------------------------------------------ ----------- ---------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 839,770 1,891,046 816,276 1,078,069 548,962 1,835,511
-----------------------------------------
Shares issued to shareholders in payment
of dividends declared 41,726 102,901 7,403 17,329 70,885 176,988
-----------------------------------------
Shares redeemed (1,976,050) (1,903,905) (557,225) (584,160) (1,661,110) (2,045,267)
----------------------------------------- --------- -------- --------- -------- --------- --------
Net change resulting from Fund share
transactions (1,094,554) 90,042 266,454 511,238 (1,041,263) (32,768)
----------------------------------------- --------- -------- --------- -------- --------- --------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Fifth Third Bank, the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee based on
a percentage of each Fund's average daily net assets (see below).
<TABLE>
<CAPTION>
FUND ANNUAL RATE
------------------ -----------
<S> <C>
Government Fund 0.55%
Bond Fund 0.55%
Ohio Tax Free Fund 0.55%
Growth Fund 0.80%
Mid Cap Fund 0.80%
Balanced Fund 0.80%
</TABLE>
The Adviser may voluntarily choose to waive a portion of its fee or reimburse
certain operating expenses of each Fund. The Adviser can modify or terminate
this voluntary waiver and reimbursement at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides each Fund
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
TRANSFER AND DIVIDEND DISBURSING AGENT, ACCOUNTING AND CUSTODY FEES--Fifth Third
Bank serves as transfer and dividend disbursing agent for the Funds for which it
receives a fee. Fifth Third Bank sub-contracts the execution of the transfer and
dividend disbursing agent functions to a non-affiliated entity. The fee is based
on the level of each Fund's average net assets for the period, plus
out-of-pocket expenses.
FOUNTAIN SQUARE FUNDS
--------------------------------------------------------------------------------
Fifth Third Bank also maintains the Funds' accounting records for which it
receives a fee. Fifth Third Bank sub-contracts the execution of the accounting
services function to a non-affiliated entity. The fee is based on the level of
each Fund's average net assets for the period, plus out-of-pocket expenses.
Fifth Third Bank is the Funds' custodian for which it receives a fee. The fee is
based on the level of each Fund's average net assets for the period, plus
out-of-pocket expenses. All other charges, such as trades and wires, are based
on similar size and types of funds. Fifth Third Bank may voluntarily choose to
waive all or a portion of its fee.
ORGANIZATIONAL EXPENSES--Organizational expenses were borne initially by FAS.
The Funds have agreed to reimburse FAS for the organizational expenses during
the five year period following the date the Trust's portfolio became effective.
<TABLE>
<CAPTION>
AMOUNT
REIMBURSED
EXPENSES OF TO FAS FOR THE
ORGANIZING THE SIX MONTHS ENDED
FUNDS JANUARY 31, 1995
-------------- ----------------
<S> <C> <C>
Government Fund............................ $ 14,730 $1,392
Bond Fund.................................. 15,070 1,423
Ohio Tax Free Fund......................... 20,665 1,378
Growth Fund................................ 14,730 1,473
Mid Cap Fund............................... 14,739 383
Balanced Fund.............................. 15,604 1,474
</TABLE>
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities for the six
months ended January 31, 1995, were as follows:
<TABLE>
<CAPTION>
GOVERNMENT BOND OHIO TAX GROWTH MID CAP BALANCED
FUND FUND FREE FUND FUND FUND FUND
----------------------------------------- ----------- ----------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
PURCHASES $15,414,004 $39,445,342 $5,605,634 $ 824,146 $4,197,396 $13,688,158
----------------------------------------
SALES $22,017,835 $35,494,294 $2,012,728 $9,885,393 $3,452,976 $19,919,730
----------------------------------------
</TABLE>
(6) CONCENTRATION OF CREDIT RISK:
Since the Ohio Tax Free Fund invests a substantial portion of its assets in
issuers located in one state, it will be more susceptible to factors adversely
affecting issuers in that state than would be a comparable general tax-exempt
mutual fund. In order to reduce the credit risk associated with such factors, at
January 31, 1995, 45.7% of the securities in the portfolio of investments are
backed by letters of credit or bond insurance of various financial institutions
and financial guaranty assurance agencies. The value of investments insured by
or supported by a letter of credit for any one institution or agency do not
exceed 17.9% of total investments.
<TABLE>
<S> <C>
TRUSTEES OFFICERS
-----------------------------------------------------------------------------
Lee A. Carter J. Christopher Donahue
Edward Burke Carey President and Treasurer
J. Christopher Donahue Charles L. Davis
Albert E. Harris Vice President and Assistant Treasurer
Jay S. Neuman
Secretary
Gail Cagney
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves risk, including possible
loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
[LOGO]
FIFTH THIRD BANK
Investment Adviser
Federated Securities Corp. is the distributor of the Funds
350756888
350756706
350756870
350756805
350756607
350756862
3030901 (3/95)
Fountain
Square
U.S. Treasury
Obligations
Fund
[LOGO]
FOUNTAIN SQUARE FUNDS
Semi-Annual Report
to Shareholders
January 31, 1995
[LOGO]
FIFTH THIRD BANK
Investment Adviser
Federated Securities Corp. is the distributor of the Funds
350756102
0022803 (3/95)
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Fountain
Square U.S. Treasury Obligations Fund (the "Fund") for the period ended January
31, 1995. The report begins with the Fund's Investment Review, followed by the
Portfolio of Investments and Financial Statements.
The Fund continues to put your cash to work pursuing competitive money market
income through a portfolio of short-term U.S. Treasury securities and repurchase
agreements that are fully collateralized by these securities. The Fund pursues
stability of principal* and offers you daily access to your money.
During the six-month reporting period, dividends paid to shareholders totaled
$7.7 million. At the end of the period, net assets totaled $303 million.
Thank you for choosing the Fund to put your cash to work. We will continue to
keep you up to date on your investment. As always, we welcome your questions or
comments.
Sincerely,
/s/ J. Christopher Donahue
J. Christopher Donahue
President
March 15, 1995
* No money market mutual fund can guarantee that a stable net asset value will
be maintained. An investment in the Fund is neither insured nor guaranteed by
the U.S. government.
INVESTMENT REVIEW
--------------------------------------------------------------------------------
The Fountain Square U.S. Treasury Obligations Fund (the "Fund") is a no-load
money market mutual fund which invests in short-term U.S. Treasury obligations
and repurchase agreements that are fully collateralized by U.S. Treasury
obligations. Currently, the Fund portfolio consists of 60% overnight repurchase
agreements and 40% U.S. Treasury obligations. The target average maturity of the
Fund currently ranges from 35 to 40 days.
In 1994, the Federal Reserve Board (the "Fed") raised short-term interest rates
by 2.5% in an effort to slow down the economy and reduce inflation. The yield
for three-month Treasury bills rose from 3.08% to 5.68% by the end of December,
1994. In February of this year, the Fed increased the Federal Funds target rate
by another 0.5%. Due to the combined interest rate hikes, we believe that in
1995, the economy should slow down.
Interest rates, especially short-term rates, are likely to remain more stable
because of this anticipated slow-down of the economy. Our strategy in this
environment is designed to capitalize on this trend and pursue a competitive
yield without compromising the conservative structure of the Fund.
FOUNTAIN SQUARE U.S. TREASURY OBLIGATIONS FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
The obligations listed below are issued or guaranteed by the U.S. government,
its agencies or instrumentalities or secured by such obligations.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ----------------------------------------------------------------------- ------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS--40.2%
--------------------------------------------------------------------------------------
U.S. TREASURY BILLS--21.7%
-----------------------------------------------------------------------
$67,000,000 2/2/1995-1/11/1996 $ 65,744,459
----------------------------------------------------------------------- ------------
U.S. TREASURY NOTES--18.5%
-----------------------------------------------------------------------
56,000,000 3.875%-7.75%, 2/15/1995-1/31/1996 55,969,841
----------------------------------------------------------------------- ------------
TOTAL U.S. TREASURY OBLIGATIONS 121,714,300
----------------------------------------------------------------------- ------------
*REPURCHASE AGREEMENTS--60.0%
--------------------------------------------------------------------------------------
11,000,000 B.T. Securities Corp., 5.75%, dated 1/31/1995, due 2/1/1995 11,000,000
-----------------------------------------------------------------------
11,000,000 Deutsche Bank Government Securities, 5.75%, dated 1/31/1995, due
2/1/1995 11,000,000
-----------------------------------------------------------------------
51,762,000 Harris, Nesbitt, Thomson Securities, Inc., 5.76%, dated 1/31/1995, due
2/1/1995 51,762,000
-----------------------------------------------------------------------
50,000,000 J.P. Morgan Securities, Inc, 5.75%, dated 1/31/1995, due 2/1/1995 50,000,000
-----------------------------------------------------------------------
11,000,000 Prudential Securities, Inc., 5.70%, dated 1/31/1995, due 2/1/1995 11,000,000
-----------------------------------------------------------------------
47,000,000 UBS Securities, Inc., 5.75%, dated 1/31/1995, due 2/1/1995 47,000,000
----------------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 181,762,000
----------------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $303,476,300+
----------------------------------------------------------------------- ------------
</TABLE>
* The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
+ Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($303,002,888) at January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. TREASURY OBLIGATIONS FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
--------------------------------------------------------------------------------
Investments in repurchase agreements $181,762,000
-----------------------------------------------------------------
Investments in securities 121,714,300
----------------------------------------------------------------- ------------
Total investments, at amortized cost and value $303,476,300
--------------------------------------------------------------------------------
Cash 463
--------------------------------------------------------------------------------
Income receivable 976,168
-------------------------------------------------------------------------------- ------------
Total assets 304,452,931
--------------------------------------------------------------------------------
LIABILITIES:
--------------------------------------------------------------------------------
Dividends payable 1,294,153
-----------------------------------------------------------------
Accrued expenses 155,890
----------------------------------------------------------------- ------------
Total liabilities 1,450,043
-------------------------------------------------------------------------------- ------------
NET ASSETS for 303,002,888 shares of beneficial interest outstanding $303,002,888
-------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
($303,002,888 / 303,002,888 shares of beneficial interest outstanding) $1.00
-------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. TREASURY OBLIGATIONS FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
---------------------------------------------------------------------------------
Interest income $8,436,281
---------------------------------------------------------------------------------
EXPENSES:
---------------------------------------------------------------------------------
Investment advisory fee $675,907
----------------------------------------------------------------------
Administrative personnel and services fee 193,724
----------------------------------------------------------------------
Custodian fees 27,564
----------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees and
expenses 36,329
----------------------------------------------------------------------
Auditing fees 8,163
----------------------------------------------------------------------
Printing and postage 3,830
----------------------------------------------------------------------
Fund share registration costs 9,660
----------------------------------------------------------------------
Miscellaneous 24,889
---------------------------------------------------------------------- --------
Total expenses 980,066
----------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 236,565
---------------------------------------------------------------------- --------
Net expenses 743,501
--------------------------------------------------------------------------------- ----------
Net investment income $7,692,780
--------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. TREASURY OBLIGATIONS FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31,
1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
--------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
------------------------------------------------------------
OPERATIONS--
------------------------------------------------------------
Net investment income $ 7,692,780 $ 10,016,721
------------------------------------------------------------ -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS--
------------------------------------------------------------
Dividends to shareholders from net investment income (7,692,780) (10,016,721)
------------------------------------------------------------ -------------- ------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
------------------------------------------------------------
Proceeds from sale of shares 398,819,231 813,333,646
------------------------------------------------------------
Cost of shares redeemed (432,044,923) (767,513,323)
------------------------------------------------------------ -------------- ------------
Change in net assets from Fund share transactions (33,225,692) 45,820,323
------------------------------------------------------------ -------------- ------------
Change in net assets (33,225,692) 45,820,323
------------------------------------------------------------
NET ASSETS:
------------------------------------------------------------
Beginning of period 336,228,580 290,408,257
------------------------------------------------------------ -------------- ------------
End of period $ 303,002,888 $336,228,580
------------------------------------------------------------ -------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. TREASURY OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
JANUARY 31, 1995 ---------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990 1989*
---------------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------
INCOME FROM INVESTMENT
OPERATIONS
------------------------------
Net investment income 0.02 0.03 0.03 0.04 0.07 0.08 0.06
------------------------------
---------- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
------------------------------
Dividends to shareholders
from net investment income (0.02) (0.03) (0.03) (0.04) (0.07) (0.08) (0.06)
------------------------------
---------- ----- ----- ----- ----- ----- -----
NET ASSET VALUE,
END OF PERIOD $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------
---------- ----- ----- ----- ----- ----- -----
TOTAL RETURN** 2.32% 3.02% 2.82% 4.32% 6.74% 8.15% 5.65%
------------------------------
RATIOS TO AVERAGE NET ASSETS
------------------------------
Expenses 0.44%(b) 0.44% 0.44% 0.45% 0.49% 0.54% 0.56%(b)
------------------------------
Net investment income 4.55%(b) 2.99% 2.79% 4.18% 6.33% 7.84% 8.71%(b)
------------------------------
Expense waiver/
reimbursement(a) 0.14%(b) 0.14% 0.15% 0.15% 0.15% 0.15% 0.15%(b)
------------------------------
SUPPLEMENTAL DATA
------------------------------
Net assets, end of period
(000 omitted) $303,003 $336,229 $290,408 $339,924 $242,247 $138,368 $141,743
------------------------------
</TABLE>
* Reflects operations for the period from December 1, 1988 (date of initial
public offering) to July 31, 1989.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE U.S. TREASURY OBLIGATIONS FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) ORGANIZATION
Fountain Square Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end, management investment
company. The Trust consists of nine diversified portfolios and one
non-diversified portfolio. The financial statements included herein present only
those of Fountain Square U.S. Treasury Obligations Fund (the "Fund"). The
financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value its
portfolio securities is in accordance with Rule 2a-7 under the Act.
B. REPURCHASE AGREEMENTS--It is the policy of the Fund to require the custodian bank to
take possession, to have legally segregated in the Federal Reserve Book Entry System, or
to have segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been established
by the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least equals the
repurchase price to be paid under the repurchase agreement transaction.
The Fund will only enter into repurchase agreements with banks and other recognized
financial institutions, such as broker/dealers, which are deemed by the Fund's adviser
to be creditworthy pursuant to guidelines and/or standards reviewed or established by
the Board of Trustees (the "Trustees").
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses are accrued
daily. Bond premium and discount, if applicable, are amortized as required by the
Internal Revenue Code, as amended (the "Code"). Distributions to shareholders are
recorded on the ex-dividend date.
D. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Code
applicable to regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary.
</TABLE>
FOUNTAIN SQUARE U.S. TREASURY OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or
delayed delivery transactions. The Fund records when-issued securities on the trade date
and maintains security positions such that sufficient liquid assets will be available to
make payment for the securities purchased. Securities purchased on a when-issued or
delayed delivery basis are marked to market daily and begin earning interest on the
settlement date.
F. OTHER--Investment transactions are accounted for on the trade date.
</TABLE>
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
January 31, 1995, capital paid-in aggregated $303,002,888. Transactions in Fund
shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 1995 JULY 31, 1994
------------------------------------------------------- ---------------- -------------
<S> <C> <C>
Shares sold 398,819,231 813,333,646
-------------------------------------------------------
Shares redeemed (432,044,923) (767,513,323)
------------------------------------------------------- --------------- ------------
Net change resulting from Fund Share transactions (33,225,692) 45,820,323
------------------------------------------------------- --------------- ------------
</TABLE>
FOUNTAIN SQUARE U.S. TREASURY OBLIGATIONS FUND
--------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Fifth Third Bank, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.40 of 1% of the Fund's average daily net assets. The Adviser may voluntarily
choose to waive a portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period.
TRANSFER AND DIVIDEND DISBURSING AGENT, ACCOUNTING AND CUSTODY FEES--Fifth Third
Bank serves as transfer and dividend disbursing agent for the Fund for which it
receives a fee. Fifth Third Bank sub-contracts the execution of the transfer and
dividend disbursing agent functions to a non-affiliated entity. The fee is based
on the level of the Fund's average net assets for the period, plus out-of-pocket
expenses.
Fifth Third Bank maintains the Fund's accounting records for which it receives a
fee. Fifth Third Bank sub-contracts the execution of the accounting services
function to a non-affiliated entity. The fee is based on the level of the Fund's
average net assets for the period, plus out-of-pocket expenses.
Fifth Third Bank is the Fund's custodian for which it receives a fee. The fee is
based on the level of the Fund's average net assets for the period, plus
out-of-pocket expenses. All other charges, such as trades and wires, are based
on similar size and types of Funds.
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
<TABLE>
<S> <C>
TRUSTEES OFFICERS
-----------------------------------------------------------------------------
Lee A. Carter J. Christopher Donahue
Edward Burke Carey President and Treasurer
J. Christopher Donahue Charles L. Davis
Albert E. Harris Vice President and Assistant
Treasurer
Jay S. Neuman
Secretary
Gail Cagney
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves risk, including possible
loss of principal. Although money market funds seek to maintain a stable net
asset value of $1.00 per share, there is no assurance that they will be able to
do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
Fountain
Square
Government
Cash Reserves
Fund
[LOGO]
FOUNTAIN SQUARE FUNDS
Semi-Annual Report
to Shareholders
January 31, 1995
[LOGO]
FIFTH THIRD BANK
Investment Adviser
Federated Securities Corp. is the distributor of the Funds
350756508
350756409
20224515 (3/95)
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Fountain
Square Government Cash Reserves Fund (the "Fund") for the period ended January
31, 1995. The report begins with the Fund's Investment Review, followed by the
Portfolio of Investments and Financial Statements. In addition, Financial
Highlights have been included for Trust Shares and Investment Shares.
The Fund continues to put your cash to work pursuing competitive money market
income through a diversified portfolio of short-term U.S. government agency
securities. The Fund also pursues stability of principal* while offering you
daily access to your money.
During the six-month reporting period, dividends paid to shareholders totaled
$3.2 million. At the end of the period, net assets totaled $156.7 million.
Thank you for choosing the Fund to put your cash to work. We will continue to
keep you up to date on your investment. As always, we welcome your questions or
comments.
Sincerely,
/s/ J. Christopher Donahue
J. Christopher Donahue
President
March 15, 1995
* No money market mutual fund can guarantee that a stable net asset value will
be maintained. An investment in the Fund is neither insured nor guaranteed by
the U.S. government.
INVESTMENT REVIEW
--------------------------------------------------------------------------------
The Fountain Square Government Cash Reserves Fund (the "Fund") is a no-load
money market mutual fund which invests in short-term U.S. government securities.
The Fund limits its investments to U.S. government securities paying interest
which, if owned directly by the shareholders of the Fund, would generally be
exempt from state personal income tax. The target average maturity of the Fund
currently ranges from 40 to 45 days.
In 1994, the Federal Reserve Board (the "Fed") raised short-term interest rates
by 2.5% in an effort to slow down the economy and reduce inflation. The yield
for three-month Treasury bills rose from 3.08% to 5.68% by the end of December,
1994. In February of this year, the Fed increased the Federal Funds target rate
by another 0.5%. Due to the combined interest rate hikes, we believe that in
1995, the economy should slow down.
Interest rates, especially short-term rates, are likely to remain more stable
because of the anticipated slow-down of the economy. Our strategy in this
environment is designed to capitalize on this trend and pursue a competitive
yield without compromising the conservative structure of the Fund.
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
SHORT-TERM OBLIGATIONS--100.4%
------------------------------------------------------------------------------------
$67,820,000 * Federal Farm Credit Bank Discount Notes,
5.522%-6.284%, 2/1/1995-5/8/1995 $ 67,449,440
----------------------------------------------------------------
5,000,000 ** Federal Farm Credit Bank Floating Rate Note,
5.585%, 5/3/1995 4,988,110
----------------------------------------------------------------
63,000,000 * Federal Home Loan Bank Discount Notes,
5.551%-6.315%, 2/1/1995-5/30/1995 62,428,280
----------------------------------------------------------------
5,000,000 ** Federal Home Loan Bank Floating Rate Note,
5.687%, 3/2/1995 5,000,563
----------------------------------------------------------------
17,450,000 * Student Loan Marketing Association Master Note,
5.81%, 2/1/1995 17,450,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $157,316,393+
---------------------------------------------------------------- ------------
</TABLE>
* Each issue shows the rate of discount at the time of purchase.
** Current rate and next demand date shown.
+ Also represents cost for federal tax purposes.
Note: The category of investments is shown as a percentage of net assets
($156,711,261) at January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
-------------------------------------------------------------------------------
Investments in securities, at amortized cost and value $157,316,393
-------------------------------------------------------------------------------
Cash 34,890
-------------------------------------------------------------------------------
Income receivable 171,591
-------------------------------------------------------------------------------
Deferred expenses 8,611
------------------------------------------------------------------------------- ------------
Total assets 157,531,485
-------------------------------------------------------------------------------
LIABILITIES:
-------------------------------------------------------------------------------
Dividends payable $735,944
--------------------------------------------------------------------
Payable to Adviser 54,361
--------------------------------------------------------------------
Accrued expenses 29,919
-------------------------------------------------------------------- --------
Total liabilities 820,224
------------------------------------------------------------------------------- ------------
NET ASSETS for 156,711,261 shares of beneficial interest outstanding $156,711,261
------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
Trust Shares ($127,253,014 / 127,253,014 shares of beneficial interest
outstanding) $1.00
------------------------------------------------------------------------------- ------------
Investment Shares ($29,458,247 / 29,458,247 shares of beneficial interest
outstanding) $1.00
------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
-----------------------------------------------------------------------------------
Interest income $3,571,683
-----------------------------------------------------------------------------------
EXPENSES:
-----------------------------------------------------------------------------------
Investment advisory fee $272,528
-----------------------------------------------------------------------
Administrative personnel and services fee 78,124
-----------------------------------------------------------------------
Custodian fees 8,103
-----------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees and
expenses 17,411
-----------------------------------------------------------------------
Legal fees 1,347
-----------------------------------------------------------------------
Auditing fees 5,712
-----------------------------------------------------------------------
Printing and postage 3,143
-----------------------------------------------------------------------
Fund share registration costs 25,418
-----------------------------------------------------------------------
Distribution services fee 31,173
-----------------------------------------------------------------------
Miscellaneous 6,575
----------------------------------------------------------------------- --------
Total expenses 449,534
-----------------------------------------------------------------------
Deduct--
-----------------------------------------------------------------------
Waiver of investment advisory fee $77,682
-------------------------------------------------------------
Waiver of distribution services fee 31,173 108,855
------------------------------------------------------------- ------- --------
Net expenses 340,679
----------------------------------------------------------------------------------- ----------
Net investment income $3,231,004
----------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
----------------------------------------------------------
OPERATIONS--
----------------------------------------------------------
Net investment income $ 3,231,004 $ 3,502,654
---------------------------------------------------------- ---------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS--
----------------------------------------------------------
Dividends to shareholders from net investment income:
----------------------------------------------------------
Trust Shares (2,796,305) (3,237,670)
----------------------------------------------------------
Investment Shares (434,699) (264,984)
---------------------------------------------------------- ---------------- ------------
Change in net assets from distributions to
shareholders (3,231,004) (3,502,654)
----------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
----------------------------------------------------------
Proceeds from sale of shares 140,175,178 248,288,040
----------------------------------------------------------
Cost of shares redeemed (101,169,049) (234,498,643)
---------------------------------------------------------- ---------------- ------------
Change in net assets from Fund share transactions 39,006,129 13,789,397
---------------------------------------------------------- ---------------- ------------
Change in net assets 39,006,129 13,789,397
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Beginning of period 117,705,132 103,915,735
---------------------------------------------------------- ---------------- ------------
End of period $ 156,711,261 $117,705,132
---------------------------------------------------------- ---------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
FINANCIAL HIGHLIGHTS--TRUST SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
JANUARY 31, 1995 -----------------------------------------
(UNAUDITED) 1994 1993 1992 1991*
---------------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------
Net investment income 0.02 0.03 0.03 0.04 0.003
--------------------------------------- --------- ----- ----- ----- ------
LESS DISTRIBUTIONS
---------------------------------------
Dividends to shareholders from net
investment income (0.02) (0.03) (0.03) (0.04) (0.003)
--------------------------------------- --------- ----- ----- ----- ------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------- --------- ----- ----- ----- ------
TOTAL RETURN** 2.38% 3.03% 2.76% 4.19% 0.33%
---------------------------------------
RATIOS TO AVERAGE NET ASSETS
---------------------------------------
Expenses 0.50%(b) 0.50% 0.50% 0.50% 0.30%(b)
---------------------------------------
Net investment income 4.74%(b) 3.01% 3.22% 4.14% 5.49%(b)
---------------------------------------
Expense waiver/reimbursement(a) 0.11%(b) 0.13% 0.15% 0.15% 0.53%(b)
---------------------------------------
SUPPLEMENTAL DATA
---------------------------------------
Net assets, end of period (000
omitted) $127,253 $106,632 $92,993 $82,888 $87,097
---------------------------------------
</TABLE>
* Reflects operations for the period from July 10, 1991 (the date of initial
public investment), to July 31, 1991.
** Based on net asset value, which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
FINANCIAL HIGHLIGHTS--INVESTMENT SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
JANUARY 31, 1995 --------------------------------
(UNAUDITED) 1994 1993 1992*
---------------- ------- ------- ------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00
----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------
Net investment income 0.02 0.03 0.03 0.03
---------------------------------------- --------- ----- ----- -----
LESS DISTRIBUTIONS
----------------------------------------
Dividends to shareholders from net
investment income (0.02) (0.03) (0.03) (0.03)
---------------------------------------- --------- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
---------------------------------------- --------- ----- ----- -----
TOTAL RETURN** 2.38% 3.03% 2.76% 2.61%
----------------------------------------
RATIOS TO AVERAGE NET ASSETS
----------------------------------------
Expenses 0.50%(b) 0.50% 0.50% 0.50%(b)
----------------------------------------
Net investment income 4.74%(b) 2.96% 3.22% 3.68%(b)
----------------------------------------
Expense waiver/reimbursement(a) 0.46%(b) 0.48% 0.50% 0.50%(b)
----------------------------------------
SUPPLEMENTAL DATA
----------------------------------------
Net assets, end of period (000
omitted) $ 29,458 $11,073 $10,923 $8,726
----------------------------------------
</TABLE>
* Reflects operations for the period from November 25, 1991 (date of initial
public investment) to July 31, 1992.
** Based on net asset value, which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) ORGANIZATION
Fountain Square Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end, management investment
company. The Trust consists of nine diversified portfolios and one
non-diversified portfolio. The financial statements included herein are only
those of Fountain Square Government Cash Reserves Fund (the "Fund"). The
financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held. The Fund offers two classes of
shares: Trust Shares and Investment Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
B. REPURCHASE AGREEMENTS--It is the policy of the Fund to require the custodian
bank to take possession, to have legally segregated in the Federal Reserve
Book Entry System, or to have segregated within the custodian bank's vault,
all securities held as collateral under repurchase agreement transactions.
Additionally, procedures have been established by the Fund to monitor, on a
daily basis, the market value of each repurchase agreement's collateral to
ensure that the value of collateral at least equals the repurchase price to
be paid under the repurchase agreement transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of these agreements. Accordingly, the Fund could receive less than
the repurchase price on the sale of collateral securities.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
--------------------------------------------------------------------------------
D. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
F. DEFERRED EXPENSES--The costs incurred by the Fund with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering its shares, have been deferred and are being
amortized using the straight-line method not to exceed a period of five
years from the Fund's commencement date.
G. OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. At January 31, 1995, capital paid-in aggregated $156,711,261.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, YEAR ENDED
TRUST SHARES 1995 JULY 31, 1994
------------------------------------------------------------- ----------- -------------
<S> <C> <C>
Shares sold 100,856,103 226,131,178
-------------------------------------------------------------
Shares redeemed (80,235,324) (212,491,332)
------------------------------------------------------------- ---------- ------------
Net change resulting from Trust Share transactions 20,620,779 13,639,846
------------------------------------------------------------- ---------- ------------
INVESTMENT SHARES
-------------------------------------------------------------
Shares sold 39,319,075 22,156,862
-------------------------------------------------------------
Shares redeemed (20,933,725) (22,007,311)
------------------------------------------------------------- ---------- ------------
Net change resulting from Investment Share transactions 18,385,350 149,551
------------------------------------------------------------- ---------- ------------
Net change resulting from Fund share transactions 39,006,129 13,789,397
------------------------------------------------------------- ---------- ------------
</TABLE>
FOUNTAIN SQUARE GOVERNMENT CASH RESERVES FUND
--------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Fifth Third Bank, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.40 of 1% of the Fund's average daily net assets. The Adviser may voluntarily
choose to waive a portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
DISTRIBUTION SERVICES FEE--The Fund has adopted a Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will
compensate Federated Securities Corp. ("FSC"), the principal distributor, from
the net assets of the Fund's Investment Shares to finance activities intended to
result in the sale of the Fund's Investment Shares. The Plan provides that the
Fund may incur distribution expenses up to 0.35 of 1% of the average daily net
assets of the Investment Shares, annually, to compensate FSC. The distributor
may voluntarily choose to waive all or a portion of its fee. The distributor can
modify or terminate this voluntary waiver at any time at its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT, ACCOUNTING AND CUSTODY FEES--Fifth Third
Bank serves as transfer and dividend disbursing agent for the Fund for which it
receives a fee. Fifth Third Bank sub-contracts the execution of the transfer and
dividend disbursing agent functions to a non-affiliated entity. The fee is based
on the level of the Fund's average net assets for the period, plus out-of-pocket
expenses.
Fifth Third Bank maintains the Fund's accounting records for which it receives a
fee. Fifth Third Bank sub-contracts the execution of the accounting services
function to a non-affiliated entity. The fee is based on the level of the Fund's
average net assets for the period, plus out-of-pocket expenses.
Fifth Third Bank is the Fund's custodian for which it receives a fee. The fee is
based on the level of the Fund's average net assets for the period, plus
out-of-pocket expenses. All other charges, such as trades and wires, are based
on similar size and types of Funds.
ORGANIZATIONAL EXPENSES--Organizational expenses of $30,604 were initially borne
by FAS. The Fund has agreed to reimburse FAS for the organizational expenses
during the five year period following July 10, 1991 (Fund's date of initial
public investment). For the six months ended January 31, 1995, the Fund paid
$3,104, pursuant to this agreement.
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
<TABLE>
<S> <C>
TRUSTEES OFFICERS
-----------------------------------------------------------------------------
Lee A. Carter J. Christopher Donahue
Edward Burke Carey President and Treasurer
J. Christopher Donahue Charles L. Davis
Albert E. Harris Vice President and Assistant
Treasurer
Jay S. Neuman
Secretary
Gail Cagney
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves risk, including possible
loss of principal. Although money market funds seek to maintain a stable net
asset value of $1.00 per share, there is no assurance that they will be able to
do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
Fountain
Square
Commercial
Paper Fund
[LOGO]
FOUNTAIN SQUARE FUNDS
Semi-Annual Report
to Shareholders
January 31, 1995
[LOGO]
FIFTH THIRD BANK
Investment Adviser
Federated Securities Corp. is the distributor of the Funds
350756201
350756300
0022802 (3/95)
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Fountain
Square Commercial Paper Fund (the "Fund") for the period ended January 31, 1995.
The report begins with the Fund's Investment Review, followed by the Portfolio
of Investments and Financial Statements. In addition, Financial Highlights have
been included for Trust Shares and Investment Shares.
The Fund continues to put your cash to work pursuing competitive money market
income, stability of principal* and daily access to your money through a
diversified portfolio of short-term, high quality money market securities.
During the six-month reporting period, dividends paid to shareholders totaled
$5.5 million. At the end of the period, net assets totaled $228.9 million.
Thank you for choosing the Fund to put your cash to work. We will continue to
keep you up to date on your investment. As always, we welcome your questions or
comments.
Sincerely,
/s/ J. Christopher Donahue
J. Christopher Donahue
President
March 15, 1995
* No money market mutual fund can guarantee that a stable net asset value will
be maintained. An investment in the Fund is neither insured nor guaranteed by
the U.S. government.
INVESTMENT REVIEW
--------------------------------------------------------------------------------
The Fountain Square Commercial Paper Fund (the "Fund") is a no-load money market
mutual fund which invests at least 65% of its assets in commercial paper of high
quality companies. The target average maturity of the Fund currently ranges from
35 to 40 days.
In 1994, the Federal Reserve Board (the "Fed") raised short-term interest rates
by 2.5% in an effort to slow down the economy and reduce inflation. The yield
for three-month Treasury bills rose from 3.08% to 5.68% by the end of December,
1994. In February of this year, the Fed increased the Federal Funds target rate
by another 0.5%. Due to the combined interest rate hikes, we believe that in
1995, the economy should slow down.
Interest rates, especially short-term rates, are likely to remain more stable
because of this anticipated slow-down of the economy. Our strategy in this
environment is designed to capitalize on this trend and pursue a competitive
yield without compromising the conservative structure of the Fund.
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMERCIAL PAPER--84.4%
------------------------------------------------------------------------------------
BANKING--8.2%
----------------------------------------------------------------
$ 5,000,000 Banc One Corp.
----------------------------------------------------------------
6.125%, 4/14/1995 $ 4,940,500
----------------------------------------------------------------
9,000,000 Societe Generale N.A., Inc.
----------------------------------------------------------------
5.916%-6.304%, 2/27/1995-4/11/1995 8,924,739
----------------------------------------------------------------
5,000,000 Wachovia Corp.
----------------------------------------------------------------
6.22%, 2/17/1995 4,986,511
---------------------------------------------------------------- ------------
Total 18,851,750
---------------------------------------------------------------- ------------
CHEMICAL--2.2%
----------------------------------------------------------------
5,000,000 Lubrizol Corp.
----------------------------------------------------------------
5.694%, 2/10/1995 4,993,000
---------------------------------------------------------------- ------------
CONSUMER PRODUCTS--3.5%
----------------------------------------------------------------
8,000,000 Procter & Gamble Co.
----------------------------------------------------------------
6.171%-6.26%, 4/7/1995-4/20/1995 7,906,313
---------------------------------------------------------------- ------------
DIVERSIFIED--4.1%
----------------------------------------------------------------
9,475,000 Cargill, Inc.
----------------------------------------------------------------
6.228%-6.375%, 3/2/1995-4/26/1995 9,387,597
---------------------------------------------------------------- ------------
EDUCATION--5.2%
----------------------------------------------------------------
3,000,000 Harvard University
----------------------------------------------------------------
5.648%, 2/6/1995 2,997,683
----------------------------------------------------------------
9,000,000 Stanford University
----------------------------------------------------------------
5.675%-6.185%, 2/1/1995-3/28/1995 8,966,363
---------------------------------------------------------------- ------------
Total 11,964,046
---------------------------------------------------------------- ------------
</TABLE>
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMERCIAL PAPER--CONTINUED
------------------------------------------------------------------------------------
FINANCE--AUTOMOTIVE--1.7%
----------------------------------------------------------------
$ 4,000,000 Associates Corp. of North America
----------------------------------------------------------------
5.989%, 2/21/1995 $ 3,987,067
---------------------------------------------------------------- ------------
FINANCE--COMMERCIAL--14.1%
----------------------------------------------------------------
5,000,000 A.I. Credit Corp.
----------------------------------------------------------------
6.014%-6.283%, 2/22/1995-4/25/1995 4,950,983
----------------------------------------------------------------
3,000,000 General Electric Capital Corp.
----------------------------------------------------------------
6.423%, 4/4/1995 2,967,812
----------------------------------------------------------------
9,500,000 MetLife Funding Corp.
----------------------------------------------------------------
6.042%-6.26%, 2/21/1995-4/18/1995 9,409,446
----------------------------------------------------------------
10,000,000 Norwest Corp.
----------------------------------------------------------------
6.107%-6.333%, 2/13/1995-4/19/1995 9,935,829
----------------------------------------------------------------
5,000,000 Prudential Funding Corp.
----------------------------------------------------------------
5.808%, 2/6/1995 4,996,042
---------------------------------------------------------------- ------------
Total 32,260,112
---------------------------------------------------------------- ------------
FOOD & BEVERAGE--13.0%
----------------------------------------------------------------
6,000,000 Anheuser Busch Corp.
----------------------------------------------------------------
5.885%-5.916%, 2/16/1995-2/17/1995 5,985,356
----------------------------------------------------------------
9,500,000 Coca-Cola Co.
----------------------------------------------------------------
5.184%-6.314%, 2/13/1995-4/12/1995 9,409,611
----------------------------------------------------------------
5,000,000 McDonald's Corp.
----------------------------------------------------------------
5.653%, 2/3/1995 4,998,453
----------------------------------------------------------------
9,500,000 Sara Lee Corp.
----------------------------------------------------------------
6.208%-6.216%, 2/16/1995-3/1/1995 9,464,088
---------------------------------------------------------------- ------------
Total 29,857,508
---------------------------------------------------------------- ------------
MANUFACTURING--8.2%
----------------------------------------------------------------
5,000,000 Emerson Electric Co.
----------------------------------------------------------------
6.17%, 4/21/1995 4,934,167
----------------------------------------------------------------
</TABLE>
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMERCIAL PAPER--CONTINUED
------------------------------------------------------------------------------------
MANUFACTURING--CONTINUED
----------------------------------------------------------------
$ 6,000,000 Minnesota Mining & Manufacturing Co.
----------------------------------------------------------------
5.758%-6.143%, 2/8/1995-2/9/1995 $ 5,992,733
----------------------------------------------------------------
8,000,000 Pitney Bowes, Inc.
----------------------------------------------------------------
6.098%-6.245%, 2/23/1995-4/20/1995 7,932,898
---------------------------------------------------------------- ------------
Total 18,859,798
---------------------------------------------------------------- ------------
OIL & GAS--3.5%
----------------------------------------------------------------
5,000,000 British Petroleum Co., America
----------------------------------------------------------------
5.691%, 2/8/1995 4,994,556
----------------------------------------------------------------
3,000,000 Chevron USA, Inc.
----------------------------------------------------------------
5.659%, 2/6/1995 2,997,708
---------------------------------------------------------------- ------------
Total 7,992,264
---------------------------------------------------------------- ------------
PHARMACEUTICALS AND HEALTH CARE--8.3%
----------------------------------------------------------------
5,000,000 Abbott Laboratories
----------------------------------------------------------------
5.723%, 2/2/1995 4,999,226
----------------------------------------------------------------
6,000,000 Lilly (Eli) & Co.
----------------------------------------------------------------
5.901%, 2/7/1995 5,994,250
----------------------------------------------------------------
8,000,000 Warner-Lambert Co.
----------------------------------------------------------------
6.122%-6.145%, 2/28/1995-4/17/1995 7,924,425
---------------------------------------------------------------- ------------
Total 18,917,901
---------------------------------------------------------------- ------------
TELECOMMUNICATIONS--10.2%
----------------------------------------------------------------
7,000,000 Ameritech Corp.
----------------------------------------------------------------
5.574%-6.379%, 2/15/1995-4/10/1995 6,956,523
----------------------------------------------------------------
7,500,000 BellSouth Telecommunications
----------------------------------------------------------------
5.124%-5.904%, 2/3/1995-2/24/1995 7,481,008
----------------------------------------------------------------
9,000,000 U.S. West Communications, Inc.
----------------------------------------------------------------
6.075%-6.157%, 2/10/1995-3/20/1995 8,961,803
---------------------------------------------------------------- ------------
Total 23,399,334
---------------------------------------------------------------- ------------
</TABLE>
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMERCIAL PAPER--CONTINUED
------------------------------------------------------------------------------------
TRANSPORTATION--2.2%
----------------------------------------------------------------
$ 5,000,000 United Parcel Service of America, Inc.
----------------------------------------------------------------
6.276%, 4/27/1995 $ 4,927,987
---------------------------------------------------------------- ------------
TOTAL COMMERCIAL PAPER 193,304,677
---------------------------------------------------------------- ------------
**REPURCHASE AGREEMENTS--16.1%
------------------------------------------------------------------------------------
20,785,000 Harris, Nesbitt, Thomson Securities, Inc., 5.76%, dated
1/31/1995, due 2/1/1995 20,785,000
----------------------------------------------------------------
16,000,000 J.P. Morgan Securities, Inc., 5.75%, dated 1/31/1995, due
2/1/1995 16,000,000
---------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 36,785,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $230,089,677+
---------------------------------------------------------------- ------------
</TABLE>
* Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
** The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($228,882,045) at January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
--------------------------------------------------------------------------------
Investments in repurchase agreements $ 36,785,000
-----------------------------------------------------------------
Investments in securities 193,304,677
----------------------------------------------------------------- ------------
Total investments, at amortized cost and value $230,089,677
--------------------------------------------------------------------------------
Cash 257
--------------------------------------------------------------------------------
Income receivable 5,881
-------------------------------------------------------------------------------- ------------
Total assets 230,095,815
--------------------------------------------------------------------------------
LIABILITIES:
--------------------------------------------------------------------------------
Dividends payable 1,091,326
-----------------------------------------------------------------
Payable to Adviser 63,431
-----------------------------------------------------------------
Accrued expenses 59,013
----------------------------------------------------------------- ------------
Total liabilities 1,213,770
-------------------------------------------------------------------------------- ------------
NET ASSETS for 228,882,045 shares of beneficial interest outstanding $228,882,045
-------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price, and Redemption Proceeds Per Share:
--------------------------------------------------------------------------------
Trust Shares ($218,912,099 / 218,912,099 shares of beneficial interest
outstanding) $1.00
-------------------------------------------------------------------------------- ------------
Investment Shares ($9,969,946 / 9,969,946 shares of beneficial interest
outstanding) $1.00
-------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
-----------------------------------------------------------------------------------
Interest income $6,044,442
-----------------------------------------------------------------------------------
EXPENSES:
-----------------------------------------------------------------------------------
Investment advisory fee $467,897
-----------------------------------------------------------------------
Administrative personnel and services fee 134,081
-----------------------------------------------------------------------
Custodian fees 13,610
-----------------------------------------------------------------------
Portfolio accounting, transfer and dividend disbursing agent fees
and expenses 35,273
-----------------------------------------------------------------------
Legal fees 3,844
-----------------------------------------------------------------------
Auditing fees 9,325
-----------------------------------------------------------------------
Printing and postage 20,025
-----------------------------------------------------------------------
Fund share registration costs 17,222
-----------------------------------------------------------------------
Distribution services fee 15,000
-----------------------------------------------------------------------
Miscellaneous 15,541
----------------------------------------------------------------------- --------
Total expenses 731,818
-----------------------------------------------------------------------
Deduct--
-----------------------------------------------------------------------
Waiver of investment advisory fee $130,035
------------------------------------------------------------
Waiver of custodian fees 13,610
------------------------------------------------------------
Waiver of distribution services fee 15,000 158,645
------------------------------------------------------------ -------- --------
Net expenses 573,173
----------------------------------------------------------------------------------- ----------
Net investment income $5,471,269
----------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
---------------------------------------------------------
OPERATIONS--
---------------------------------------------------------
Net investment income $ 5,471,269 $ 6,633,051
--------------------------------------------------------- ---------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS--
---------------------------------------------------------
Dividends to shareholders from net investment income:
---------------------------------------------------------
Trust Shares (5,266,341) (6,444,903)
---------------------------------------------------------
Investment Shares (204,928) (188,148)
--------------------------------------------------------- ---------------- ------------
Change in net assets from distributions to
shareholders (5,471,269) (6,633,051)
--------------------------------------------------------- ---------------- ------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
---------------------------------------------------------
Proceeds from sale of shares 647,954,812 868,472,344
---------------------------------------------------------
Cost of shares redeemed (638,345,549) (833,978,799)
--------------------------------------------------------- ---------------- ------------
Change in net assets from Fund share transactions 9,609,263 34,493,545
--------------------------------------------------------- ---------------- ------------
Change in net assets 9,609,263 34,493,545
---------------------------------------------------------
NET ASSETS:
---------------------------------------------------------
Beginning of period 219,272,782 184,779,237
--------------------------------------------------------- ---------------- ------------
End of period $ 228,882,045 $219,272,782
--------------------------------------------------------- ---------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
FINANCIAL HIGHLIGHTS--TRUST SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, YEAR ENDED JULY 31,
1995 -------------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990 1989*
----------- -------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------
INCOME FROM INVESTMENT
OPERATIONS
--------------------------------
Net investment income 0.02 0.03 0.03 0.04 0.07 0.08 0.01
-------------------------------- -------- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
--------------------------------
Dividends to shareholders from
net investment income (0.02) (0.03) (0.03) (0.04) (0.07) (0.08) (0.01)
-------------------------------- -------- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-------------------------------- -------- ----- ----- ----- ----- ----- -----
TOTAL RETURN** 2.37% 3.02% 2.78% 4.27% 6.89% 8.22% 1.19%
--------------------------------
RATIOS TO AVERAGE NET ASSETS
--------------------------------
Expenses 0.49%(b) 0.49% 0.48% 0.46% 0.50% 0.53% 0.45%(b)
--------------------------------
Net investment income 4.68%(b) 2.97% 2.75% 4.19% 6.61% 7.86% 8.95%(b)
--------------------------------
Expense waiver/
reimbursement(a) 0.12%(b) 0.10% 0.12% 0.14% 0.14% 0.16% 0.35%(b)
--------------------------------
SUPPLEMENTAL DATA
--------------------------------
Net assets, end of period (000
omitted) $218,912 $213,126 $180,065 $194,308 $213,889 $174,727 $62,225
--------------------------------
</TABLE>
* Reflects operations for the period from June 14, 1989 (date of initial public
offering) to July 31, 1989.
** Based on net asset value, which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
FINANCIAL HIGHLIGHTS--INVESTMENT SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
JANUARY 31, 1995 -------------------------
(UNAUDITED) 1994 1993*
---------------- ------------- -----
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------
Net investment income 0.02 0.03 0.03
--------------------------------------- ---------- --------- -----
LESS DISTRIBUTIONS
---------------------------------------
Dividends to shareholders from net
investment income (0.02) (0.03) (0.03)
--------------------------------------- ---------- --------- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
--------------------------------------- ---------- --------- -----
TOTAL RETURN** 2.37% 3.02% 2.70%
---------------------------------------
RATIOS TO AVERAGE NET ASSETS
---------------------------------------
Expenses 0.49%(b) 0.49% 0.48%(b)
---------------------------------------
Net investment income 4.68%(b) 2.97% 2.69%(b)
---------------------------------------
Expense waiver/reimbursement(a) 0.47%(b) 0.45% 0.47%(b)
---------------------------------------
SUPPLEMENTAL DATA
---------------------------------------
Net assets, end of period (000
omitted) $9,970 $6,147 $4,714
---------------------------------------
</TABLE>
* Reflects operations for the period from August 11, 1992 (date of initial
public investment) to July 31, 1993.
** Based on net asset value, which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) ORGANIZATION
Fountain Square Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end, management investment
company. The Trust consists of nine diversified portfolios and one
non-diversified portfolio. The financial statements included herein present only
those of Fountain Square Commercial Paper Fund (the "Fund"). The financial
statements of the other portfolios are presented separately. The assets of each
portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held. The Fund offers two classes of shares: Trust
Shares and Investment Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value its
portfolio securities is in accordance with Rule 2a-7 under the Act.
B. REPURCHASE AGREEMENTS--It is the policy of the Fund to require the custodian bank to
take possession, to have legally segregated in the Federal Reserve Book Entry System, or
to have segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been established
by the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least equals the
repurchase price to be paid under the repurchase agreement transaction.
The Fund will only enter into repurchase agreements with banks and other recognized
financial institutions, such as broker/dealers, which are deemed by the Fund's adviser
to be creditworthy pursuant to guidelines and/or standards reviewed or established by
the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the terms of
these agreements. Accordingly, the Fund could receive less than the repurchase price on
the sale of collateral securities.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses are accrued
daily. Bond premium and discount, if applicable, are amortized as required by the
Internal Revenue Code, as amended (the "Code"). Distributions to shareholders are
recorded on the ex-dividend date.
</TABLE>
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
D. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Code
applicable to regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or
delayed delivery transactions. The Fund records when-issued securities on the trade date
and maintains security positions such that sufficient liquid assets will be available to
make payment for the securities purchased. Securities purchased on a when-issued or
delayed delivery basis are marked to market daily and begin earning interest on the
settlement date.
F. OTHER--Investment transactions are accounted for on the trade date.
</TABLE>
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. At January 31, 1995, capital paid-in aggregated $228,882,045.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
TRUST SHARES JANUARY 31, 1995 JULY 31, 1994
------------------------------------------------------- ---------------- -------------
<S> <C> <C>
Shares sold 634,927,126 848,035,515
-------------------------------------------------------
Shares redeemed (629,141,091) (814,974,172)
------------------------------------------------------- --------------- ------------
Net change resulting from Trust Share transactions 5,786,035 33,061,343
------------------------------------------------------- --------------- ------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT SHARES
-------------------------------------------------------
<S> <C> <C>
Shares sold 13,027,686 20,436,829
-------------------------------------------------------
Shares redeemed (9,204,458) (19,004,627)
------------------------------------------------------- --------------- ------------
Net change resulting from Investment Share
transactions 3,823,228 1,432,202
------------------------------------------------------- --------------- ------------
Total net change resulting from Fund share
transactions 9,609,263 34,493,545
------------------------------------------------------- --------------- ------------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Fifth Third Bank, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.40 of 1% of the Fund's average daily net assets. The Adviser may voluntarily
choose to waive a portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
FOUNTAIN SQUARE COMMERCIAL PAPER FUND
--------------------------------------------------------------------------------
DISTRIBUTION SERVICES FEE--The Fund has adopted a Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will
compensate Federated Securities Corp. ("FSC"), the principal distributor, from
the net assets of the Fund's Investment Shares to finance activities intended to
result in the sale of the Fund's Investment Shares. The Plan provides that the
Fund may incur distribution expenses up to 0.35 of 1% of the average daily net
assets of the Investment Shares, annually, to compensate FSC. The distributor
may choose to voluntarily waive all or a portion of its fee. The distributor can
modify or terminate this voluntary waiver at any time at its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT, ACCOUNTING AND CUSTODY FEES--Fifth Third
Bank serves as transfer and dividend disbursing agent for the Fund for which it
receives a fee. Fifth Third Bank sub-contracts the execution of the transfer and
dividend disbursing agent functions to a non-affiliated entity. The fee is based
on the level of the Fund's average net assets for the period, plus out-of-pocket
expenses.
Fifth Third Bank maintains the Fund's accounting records for which it receives a
fee. Fifth Third Bank sub-contracts the execution of the accounting services
function to a non-affiliated entity. The fee is based on the level of the Fund's
average net assets for the period, plus out-of-pocket expenses.
Fifth Third Bank is the Fund's custodian for which it receives a fee. The fee is
based on the level of the Fund's average net assets for the period, plus
out-of-pocket expenses. All other charges, such as trades and wires, are based
on similar size and types of Funds. The custodian may choose to voluntarily
waive all or a portion of its fee.
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
<TABLE>
<S> <C>
TRUSTEES OFFICERS
-----------------------------------------------------------------------------
Lee A. Carter J. Christopher Donahue
Edward Burke Carey President and Treasurer
J. Christopher Donahue Charles L. Davis
Albert E. Harris Vice President and Assistant
Treasurer
Jay S. Neuman
Secretary
Gail Cagney
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves risk, including possible
loss of principal. Although money market funds seek to maintain a stable net
asset value of $1.00 per share, there is no assurance that they will be able to
do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
