<PAGE>
FOUNTAIN SQUARE(R) FUNDS
[PICTURE APPEARS HERE]
QUALITY GROWTH FUND
EQUITY INCOME FUND
BALANCED FUND
MID CAP FUND
INTERNATIONAL EQUITY FUND
BOND FUND FOR INCOME
QUALITY BOND FUND
U.S. GOVERNMENT SECURITIES FUND
MUNICIPAL BOND FUND
OHIO TAX FREE BOND FUND
COMMERCIAL PAPER FUND
GOVERNMENT CASH RESERVES FUND
U.S. TREASURY OBLIGATIONS FUND
Semi-Annual Report to Shareholders
January 31, 1998
<PAGE>
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Funds' prospectus, which contains facts
concerning the objectives and policies, management fees, expenses and other
information.
For more complete information on the Fountain Square Funds, including fees,
expenses and sales charges, please call 1-888-799-5353 for a prospectus, which
you should read carefully before you invest or send money. The Fountain Square
Funds are distributed by BISYS Fund Services.
Fifth Third Bank serves as Investment Advisor to the Funds and receives a fee
for its services.
Fountain Square Funds, like all mutual funds:
. are NOT FDIC insured
. have no bank guarantee
. may lose value
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Letter from the Chief Investment Officer
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Dear Shareholder:
We are pleased to present the Fountain Square Funds Semi-Annual Report for
the six months ended January 31, 1998. This letter offers us an opportunity
to comment on recent market conditions and to review some of the principles
that have continued to guide our investment strategy. It also gives us a
chance to explain our outlook for the coming months, as well as our strategy
based on that outlook.
Gains accompanied by volatility
The financial markets continued to post gains during the recent period, with
the Standard & Poor's 500 delivering a total return of 3.56%. The Fountain
Square Funds also performed well during the period.
The stock market's positive return over the past six months was due to
several factors. For one, continued economic growth coupled with low
inflation provided an attractive environment for investors. Increased worker
productivity allowed companies to increase wages without raising prices.
Interest rates also declined significantly during the period, with the yield
on the 30-year Treasury bond falling by 50 basis points. Good corporate
earnings--reflecting increased productivity due to firms' large investments
in technology--also helped boost stock prices. And strong money flows into
stocks and mutual funds benefited equities.
The gains of the market were accompanied by increasing volatility, however,
due to severe economic and currency problems in Asian countries. In
particular, investors worried that weak Asian economies would hurt corporate
profits in the United States. Such concerns caused stock prices to fluctuate
significantly during the period.
A long-term focus
Despite the stock market's recent volatility, we resisted the temptation to
focus too closely on short-term events. As always, we managed the Funds with
long-term performance in mind. Our disciplined approach of buying shares of
consistent, high-quality growth companies trading at attractive valuations
again benefited the Funds' performances.
The Funds' strong performances reflect our strategy, which calls for
identifying long-term trends driving the stock market and investing in
high-quality growth companies that may benefit from those trends. For
example, we have invested heavily in shares of health-care firms and
financial services companies, which should benefit as aging baby-boomers
spend more on their health and invest more for their retirement. We also have
invested in shares of companies that supply or benefit from
productivity-enhancing technology, such as computers.
We also continued to take a long-term approach to bonds, taking advantage of
opportunities without exposing shareholders to unnecessary risk. For example,
we invested in fixed-income securities with strong credit ratings. We also
avoided large interest rate bets that would require us to deviate greatly
from the average maturity of the Funds' benchmarks. Instead, we took
advantage of opportunities in specific sectors or maturity ranges, while
maintaining relatively stable average maturities.
1
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Letter from the Chief Investment Officer continued
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Looking ahead
During the next several months, we expect wage costs and productivity
gains to balance out, keeping inflation low. Yields on long-term bonds
likely will remain between 5.5% and 6.5%, although they could drift
slightly lower than that range.
We will keep a careful watch on how the recent economic turmoil in Asia
affects corporate earnings in the United States. Although we may see a
slight decline in United States GDP (Gross Domestic Product) growth this
year, we do not foresee a recession. We expect companies to continue to
post positive earnings growth in 1998, although the gains likely will be
more modest than in the past. For example, we estimate the Standard &
Poor's 500 Stock Index's(*) overall earnings growth rate will be 5% to
8%, although, we believe the earnings of the quality growth companies in
which our Funds invest could increase by 8% to 10%.
We believe that stock valuations are still reasonable if earnings growth
stays positive. Although valuation measures such as price-to-earnings
ratios are historically high, inflation is low enough to warrant those
valuations.
However, it is worth mentioning that the stock market has become more
volatile during the past several months, due in part to the Asian
economic crisis. What's more, we are far along in the economic cycle,
having recently completed our seventh consecutive year of economic
expansion. In that environment, we continue to stress the importance of
holding a variety of assets in your portfolio.
In particular, now may be a good time to examine your exposure to
international markets. Although returns from overseas markets during
recent years have been weak relative to returns at home, exposure to
international stocks is an important component of a diversified
portfolio. Moreover, such stocks may begin to perform well in the coming
year.
Thank you for your continued confidence in us. We will continue to manage
the Funds with a disciplined, long-term approach and will do our best to
help you meet your financial goals.
Sincerely,
/s/ James D. Berghausen, CFA
James D. Berghausen, CFA
Chief Investment Officer
Fifth Third Bank
(*)Standard & Poor's 500 Stock Index is an unmanaged market Index. This
index does not include transaction costs associates with buying and
selling securities, nor does it include any management fees.
2
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3
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Investment Reviews
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Fountain Square Quality Growth Fund
The Fund posted a total return of 4.30% on Investment A Shares (before
deduction of sales charge)/1/ during the six months ended January 31,
1998. The Fund's return compared to a total return of 3.56% for the
Standard & Poor's 500 Index, one of the Fund's benchmarks.
The stock market's performance was more sluggish than it has been
recently due to already high valuations and concerns that economic
problems in Southeast Asia would hamper domestic growth. Within that
environment, we continued to invest in shares of high-quality companies
with strong earnings growth rates, while keeping an eye on the valuations
of our holdings.
That approach resulted in an overweighting in the technology,
health-care, financial services and capital goods sectors. The decision
to overweight health-care stocks was driven by attractive valuations in
the sector, accelerating growth rates and strong product cycles of such
companies as Schering-Plough Corp. (4.0% of net assets as of January 31,
1998) and American Home Products (3.4%). In the financial services
sector, the Fund's investment in Cincinnati Financial (2.2%) helped boost
performance.
We continued to underweight sectors with limited growth potential, high
valuations and a high degree of economic sensitivity. These sectors
included utilities, energy, consumer staples and basic materials.
Looking forward, we expect returns in the stock market during the next 12
to 18 months to be closer to their historical averages. We will continue
to emphasize shares of relatively large, high-quality growth companies
with low economic sensitivity, high earnings visibility and above-average
earnings dividend growth. We will also continue to carefully monitor the
valuations of the Fund's investments, in an effort to avoid holding
overvalued stocks. This should help improve downside protection.
As of January 31, 1998, the Fund's top holdings were Intel Corp. (5.1%),
Freddie Mac (4.4%), Cisco Systems (4.2%), Johnson & Johnson (4.1%) and
Schering-Plough Corp. (4.0%)./2/
/1/ With the maximum sales charge of 4.50%, the Fund's total return for
Investment A Shares was -0.40% for the six-month period.
/2/ The composition of the Fund's portfolio is subject to change.
4
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Growth of $10,000 Invested in the Fountain Square Quality Growth Fund
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lipper Growth S&P/BARRA S&P 500 Investment Investment
Date Funds Average Growth Index Stock Index A Shares* C Shares**
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Jan-88 10,000 10,000 10,000 9,550 10,000
Jan-89 11,651 11,760 12,013 10,974 11,440
Jan-90 13,036 13,848 13,742 12,519 12,984
Jan-91 14,259 15,619 14,893 14,405 14,877
Jan-92 18,503 20,021 18,274 18,358 18,889
Jan-93 20,231 21,565 20,195 19,929 20,439
Jan-94 23,069 22,641 22,790 20,545 21,070
Jan-95 22,048 23,427 22,920 20,564 21,090
Jan-96 29,550 32,783 31,757 26,950 27,639
Jan-97 36,342 42,208 40,132 34,563 35,217
Jan-98 43,594 55,232 50,951 44,434 44,948
</TABLE>
Average Annual Total Return for the Period Ended January 31, 1998/1/
<TABLE>
<CAPTION>
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Investment A* Investment C**
------------- --------------
<S> <C> <C>
1 Year......................................22.75%..................27.63%
5 Year......................................16.32%..................17.08%
10 Year.....................................16.10%..................16.23%
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</TABLE>
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/1/ The quoted performance of the Quality Growth Fund includes performance of
certain collectively managed accounts advised by Fifth Third Bank, for periods
dating back to 1/31/88 and prior to the Quality Growth Fund's commencement of
operations on 11/20/92, as adjusted to reflect the expenses associated with the
Fund (without waivers or reimbursements). These collectively managed accounts
were not registered with the Securities and Exchange Commission and, therefore,
were not subject to the investment restrictions imposed by law on registered
mutual funds. If such accounts had been registered, the performance may have
been adversely affected. The performance shown reflects the deduction of fees
for value-added services associated with a mutual fund, such as investment
management and fund accounting fees. The performance also reflects reinvestment
of all dividends and capital-gains distributions.
* Reflects the maximum sales charge of 4.50%.
** Investment C Shares were initially offered April 19, 1996. The performance
figures for Investment C Shares for periods prior to such date represent the
performance for Investment A Shares of the Fund. Investment C Shareholders that
redeem within one year of purchase are subject to a contingent deferred sales
charge of 1.00%. The Investment A Shares are subject to a maximum front-end
sales charge of 4.50%. Investment C Shares are also subject to administrative
service fees at a maximum rate of 0.25% and Rule 12b-1 fees of up to 1.00% of
the average daily net asset value of Investment C Shares. If these 12b-1 fees
were reflected, performance would have been lower. Investment A Shares are
subject to Rule 12b-1 fees of up to 0.35% of the average daily net asset value
of Investment A Shares.
The Fund's performance is measured against the Standard & Poor's 500 Stock
Index, S&P/BARRA Growth Index, both of which are unmanaged indices generally
representative of the stock market, and the Lipper Growth Funds Average,
representative of the average of the total returns reported by all of the mutual
funds designated by Lipper Analytical Services, Inc. falling into this category.
The S&P's 500 Stock Index and the S&P/BARRA Growth Index do not reflect the
deduction of fees associated with a mutual fund. The Lipper Growth Funds Average
and the Fund's performance reflect the deduction of fees for these value-added
services.
Past performance is not indicative of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
5
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Fountain Square Equity Income Fund
The Fund posted a total return of 12.61% on Investment A Shares (before
deduction of sales charge)/1/ during the six months ended January 31, 1998.
The Fund's total return compared favorably to a 4.33% return for Lipper
Equity Income Funds Average, and a 3.56% return for the S&P 500 Stock Index.
The environment during the period was favorable for the Fund, as falling
interest rates and continued earnings growth drove stock performance.
Investors, fearing that the financial crisis in Southeast Asia could lead to
slower U.S. economic growth, favored stocks of firms with above-average
earnings and dividend growth.
The Fund overweighted financial services, utilities and health-care stocks.
These shares benefited from investors' flight-to-quality, as well as from
falling interest rates. In particular, Cincinnati Financial Corp. (1.2% of
net assets as of January 31, 1998) helped boost the Fund's performance; its
stock rose over 120% during 1997, boosted by its addition to the S&P 500
Stock Index on December 17, 1997. Ameritech Corp. (5.2%) performed well in
the telecommunications sector. In addition, shares of pharmaceutical
companies, such as Merck & Co., Inc. (1.8%), also boosted the Fund's returns.
We expect earnings growth to drive the stock market's performance during the
coming months. We will continue to emphasize stocks of high-quality firms
that have potential to consistently increase their earnings and dividends. We
expect that earnings increases of roughly 7 to 10% will support stock price
gains in a similar range.
As of January 31, 1998, the Fund's top five holdings were Ameritech Corp.
(5.2%), Mellon Bank Corp. (5.2%), Fannie Mae (4.5%), GATX Corp. (4.4%), and
Alltel Corp. (4.3%)./2/
/1/ With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A Shares was 7.55% for the six-month period.
/2/ The composition of the Fund's portfolio is subject to change.
6
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Growth of $10,000 Invested in the Fountain Square Equity Income Fund
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lipper Equity Income S&P 500 Investment Investment C
Date Funds Average Stock Index A Shares* C Shares**
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jan-88 10,000 10,000 9,550 10,000
Jan-89 11,527 12,013 11,288 11,715
Jan-90 12,579 13,742 12,749 13,096
Jan-91 12,624 14,893 13,606 13,853
Jan-92 15,400 18,274 16,550 16,682
Jan-93 17,194 20,195 17,547 17,506
Jan-94 19,991 22,790 18,405 18,196
Jan-95 19,334 22,920 18,034 17,661
Jan-96 25,265 31,757 23,713 23,007
Jan-97 30,325 40,132 28,279 27,172
Jan-98 36,816 50,951 38,103 36,374
</TABLE>
Average Annual Total Return for the Period Ended January 31, 1998/1/
<TABLE>
<CAPTION>
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Investment A* Investment C**
------------- --------------
<S> <C> <C>
1 Year......................................28.73%..................33.87%
5 Year......................................15.70%..................15.75%
10 Year.....................................14.32%..................13.79%
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</TABLE>
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/1/ The quoted performance of the Equity Income Fund includes performance of
certain collectively managed accounts advised by Fifth Third Bank, for periods
dating back to 1/31/88 and prior to the Equity Income Fund's commencement of
operations on 1/27/97, as adjusted to reflect the expenses associated with the
Fund (without waivers or reimbursements). These collectively managed accounts
were not registered with the Securities and Exchange Commission and, therefore,
were not subject to the investment restrictions imposed by law on registered
mutual funds. If such accounts had been registered, the performance may have
been adversely affected. The performance shown reflects the deduction of fees
for value-added services associated with a mutual fund, such as investment
management and fund accounting fees. The performance also reflects reinvestment
of all dividends and capital-gains distributions.
* Reflects the maximum sales charge of 4.50%.
** Investment C Shareholders that redeem within one year of purchase are
subject to a contingent deferred sales charge of 1.00%. Investment C Shares are
also subject to administrative service fees at a maximum rate of 0.25% and Rule
12b-1 fees of up to 1.00% of the average daily net asset value of Investment C
Shares. If these 12b-1 fees were reflected, performance would have been lower.
The Fund's performance is measured against the Standard & Poor's 500 Stock Index
and the Lipper Equity Income Funds Average. The S&P 500 Stock Index is an
unmanaged index that is generally representative of the U.S. Stock Market as a
whole. The Lipper Equity Income Funds Average is representative of the average
of the total returns reported by all of the mutual funds designated by Lipper
Analytical Services, Inc. falling into this category. The S&P 500 Stock Index
does not reflect the deduction of fees associated with a mutual fund. The Lipper
Equity Income Funds Average and the Fund's performance reflect the deduction of
fees for these value-added services.
Past performance is not indicative of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
7
<PAGE>
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Fountain Square Balanced Fund
The Fund posted a total return of 3.43% on Investment A Shares (before
deduction of sales charge)/1/ during the six months ended January 31, 1998.
The Fund's return compared to a 3.56% total return for the Standard & Poor's
500 Index, one of the Fund's benchmarks.
We maintained the Fund's asset allocation of 65% equities and 35%
fixed-income securities during the period. The Fund's stock holdings included
a 65% to 70% stake in shares of large, high-quality growth companies. We also
increased our position in shares of fast-growing mid-cap firms, taking
advantage of attractive valuations among such stocks. We overweighted the
technology, health-care, financial services and capital goods sectors. The
Fund was underweighted in utilities, energy, consumer staples, communication
services and basic materials companies.
The Fund's fixed-income holdings primarily were a mix of U.S. Treasury
securities and high-quality corporate issues, with some select
mortgage-backed bonds.
During the coming months, we anticipate that stocks could outperform bonds.
Therefore, we will continue to invest most of the portfolio in shares of
high-quality, large and medium-sized growth companies trading at reasonable
valuations. We will increase the Fund's exposure to mid-cap stocks, due to
their attractive valuations and high earnings visibility. However, we also
will continue to invest a reasonable percentage of the portfolio in
high-quality Treasury and corporate fixed-income securities in an effort to
help mitigate risk to shareholders.
As of January 31, 1998, the Fund's top five equity holdings were Intel (2.7%
of net assets), Freddie Mac (2.3%), Cisco Systems (2.2%), Johnson & Johnson
(2.1%) and Bank of New York (2.0%).(2)
/1/ With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A Shares was -1.22% for the six-month period.
/2/ The composition of the Fund's portfolio is subject to change.
<PAGE>
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Growth of $10,000 Invested in the Fountain Square Balanced Fund
[LINE GRAPH APPEARS HERE]
Balanced Fund
<TABLE>
<CAPTION>
Lehman Brothers Lipper Balanced S&P/BARRA S&P 500 Investment A Investment C
Aggregate Bond Index Funds Average Growth Index Stock Index Shares* Shares**
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<S> <C> <C> <C> <C> <C> <C>
Jan-88 10,000 10,000 10,000 10,000 9,550 10,000
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Jan-89 10,572 11,002 11,760 12,013 10,947 11,435
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Jan-90 11,784 12,079 13,848 13,742 12,733 13,228
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Jan-91 13,165 13,049 15,619 14,893 14,849 15,380
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Jan-92 14,880 15,738 20,021 18,274 18,548 19,114
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Jan-93 16,513 17,264 21,565 20,195 20,659 21,221
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Jan-94 18,022 19,530 22,641 22,790 21,525 22,112
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Jan-95 17,604 18,779 23,427 22,920 21,320 21,901
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Jan-96 20,587 23,732 32,783 31,757 26,632 27,359
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Jan-97 21,257 27,359 42,208 40,132 31,232 31,911
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Jan-98 23,541 32,179 55,232 50,951 37,962 38,523
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</TABLE>
Average Annual Total Return for the Period Ended January 31, 1998(1)
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Investment A* Investment C**
------------ ------------
1 Year..................................16.06%...............20.72%
5 Year..................................11.91%...............12.66%
10 Year.................................14.27%...............14.43%
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/1/ The quoted performance of the Balanced Fund includes performance of certain
collectively managed accounts advised by Fifth Third Bank, for periods dating
back to 1/31/88 and prior to the Balanced Fund's commencement of operations on
11/20/92, as adjusted to reflect the expenses associated with the Fund (without
waivers or reimbursements). These collectively managed accounts were not
registered with the Securities and Exchange Commission and, therefore, were not
subject to the investment restrictions imposed by law on registered mutual
funds. If such accounts had been registered, the performance may have been
adversely affected. The performance shown reflects the deduction of fees for
value-added services associated with a mutual fund, such as investment
management and fund accounting fees. The performance also reflects reinvestment
of all dividends and capital-gains distributions.
* Reflects the maximum sales charge of 4.50%.
** Investment C Shares were initially offered April 19, 1996. The performance
figures for Investment C Shares for periods prior to such date represent the
performance for Investment A Shares of the Fund. Investment C Shareholders that
redeem within one year of purchase are subject to a contingent deferred sales
charge of 1.00%. The Investment A Shares are subject to a maximum front-end
sales charge of 4.50%. Investment C Shares are also subject to administrative
service fees at a maximum rate of 0.25% and Rule 12b-1 fees of up to 1.00% of
the average daily net asset value of Investment C Shares. If these 12b-1 fees
were reflected, performance would have been lower. Investment A Shares are
subject to Rule 12b-1 fees of up to 0.35% of the average daily net asset value
of Investment A Shares.
The Fund's performance is measured against the Standard & Poor's 500 Stock
Index, S&P/BARRA Growth Index, both of which are unmanaged indices generally
representative of the stock market; the Lehman Brothers Aggregate Bond Index, an
unmanaged index generally representative of the bond market as a whole, and the
Lipper Balanced Funds Average, representative of the average of the total
returns reported by all of the mutual funds designated by Lipper Analytical
Services, Inc. falling into this category. The S&P 500 Stock Index, the
S&P/BARRA Growth Index and the Lehman Brothers Aggregate Bond Index do not
reflect the deduction of fees associated with a mutual fund. The Lipper Balanced
Funds Average and the Fund's performance reflect the deduction of fees for these
value-added services.
Past performance is not indicative of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
9
<PAGE>
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Fountain Square Mid Cap Fund
During the six months ended January 31, 1998, the Fund's total return was
7.19% for the Investment A Share class (before deduction of sales charge)./1/
That return compared to a 4.47% total return for the Standard & Poor's MidCap
400 Index, one of the Fund's benchmarks.
Shares of medium-sized firms performed well during the period, due to
attractive valuations and improving earnings for such firms. Furthermore, the
economic crisis in Southeast Asia caused many investors to shift assets from
shares of large, multinational firms with strong international exposure, to
shares of companies with less international exposure-and that group included
stocks of many mid-sized companies.
We continued to invest in shares of high-quality, medium-sized companies with
above-average growth prospects trading at attractive valuations. This
approach led us to overweight the financial services, technology, consumer
cyclicals and capital goods sectors. Stocks that helped boost the Fund's
return during the period included American Bankers Insurance Group (5.1% of
net assets) and Cincinnati Financial (2.6%) in the financial services sector;
Comair Holdings (4.5%) in the transportation and Casey's General Stores
(2.3%) in the consumer cyclicals sector./2/
We underweighted the basic materials, communication services, energy and
utilities sectors. We believe these sectors offered limited growth potential
during the period.
We expect shares of high-quality, medium-sized growth companies to perform
well relative to large- company stocks in the coming months. We believe
mid-cap stocks in general offer more attractive valuations, stronger earnings
growth potential and less exposure to international economies. We will
continue to invest in companies with potentially sustainable above-average
growth rates when their shares trade at attractive prices.
As of January 31, 1998, the Fund's top five holdings were American Bankers
Insurance Group (5.1%), Fiserv (4.9%), Comair Holdings (4.5%), First
Tennessee National (4.3%) and Cardinal Health (4.1%)./2/
/1/ With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A Shares was 2.36% for the six-month period.
/2/ The composition of the Fund's portfolio is subject to change.
10
<PAGE>
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Growth of $10,000 Invested in the Fountain Square Mid Cap Fund
[LINE GRAPH APPEARS HERE]
Mid Cap Fund
Lipper MidCap Standard & Poor's Investment A Investment C
Funds Average MidCap 400 Index Shares * Shares **
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Jan-88 10,000 10,000 9,550 10,000
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Jan-89 11,911 12,345 11,764 12,248
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Jan-90 13,360 14,340 13,486 13,991
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Jan-91 14,576 16,038 15,835 16,353
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Jan-92 20,617 22,704 21,918 22,546
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Jan-93 22,629 25,279 22,902 23,486
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Jan-94 26,517 29,117 23,535 24,135
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Jan-95 25,294 27,722 23,667 24,270
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Jan-96 33,353 36,448 29,850 30,612
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Jan-97 39,908 44,432 35,231 35,972
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Jan-98 44,603 55,560 45,801 46,419
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Average Annual Total Return for the Period Ended January 31, 1998/1/
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Investment A* Investment C**
------------ ------------
1 Year......................................24.15%.................29.04%
5 Year......................................13.82%.................14.59%
10 Year.....................................16.44%.................16.59%
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/1/ The quoted performance of the Mid Cap Fund includes performance of certain
collectively managed accounts advised by Fifth Third Bank, for periods dating
back to 1/31/88 and prior to the Mid Cap Fund's commencement of operations on
11/20/92, as adjusted to reflect the expenses associated with the Fund (without
waivers or reimbursements). These collectively managed accounts were not
registered with the Securities and Exchange Commission and, therefore, were not
subject to the investment restrictions imposed by law on registered mutual
funds. If such accounts had been registered, the performance may have been
adversely affected. The performance shown reflects the deduction of fees for
value-added services associated with a mutual fund, such as investment
management and fund accounting fees. The performance also reflects reinvestment
of all dividends and capital-gains distributions.
* Reflects the maximum sales charge of 4.50%.
** Investment C Shares were initially offered April 19, 1996. The
performance figures for Investment C Shares for periods prior to such date
represent the performance for Investment A Shares of the Fund. Investment C
Shareholders that redeem within one year of purchase are subject to a contingent
deferred sales charge of 1.00%. The Investment A Shares are subject to a maximum
front-end sales charge of 4.50%. Investment C Shares are also subject to
administrative service fees at a maximum rate of 0.25% and Rule 12b-1 fees of up
to 1.00% of the average daily net asset value of Investment C Shares. If these
12b-1 fees were reflected, performance would have been lower. Investment A
Shares are subject to Rule 12b-1 fees of up to 0.35% of the average daily net
asset value of Investment A Shares.
The Fund's performance is measured against the Standard & Poor's MidCap 400
Index, an unmanaged index generally representative of the mid-cap sector of the
U.S. stock market, and the Lipper MidCap Funds Average, representative of the
average of the total returns reported by all of the mutual funds designated by
Lipper Analytical Services, Inc. falling into this category. The Standard &
Poor's MidCap 400 Index does not reflect the deduction of fees associated with a
mutual fund. The Lipper MidCap Funds Average and the Fund's performance reflect
the deduction of fees for these value-added services.
Past performance is not indicative of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
11
<PAGE>
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Fountain Square International Equity Fund+
The Fund posted a -2.50% loss on Investment A Shares (before deduction of
sales charge)/1/ during the six months ended January 31, 1998. That compared
to a -5.69% return for the Morgan Stanley Capital International EAFE (Europe,
Australasia and Far East) Index.
Foreign markets were very volatile, especially late in the period. There was
a divergence of returns between Europe and Asia: European stocks gained 12.6%
in local currency terms, while stock markets in the Far East (ex-Japan)
declined 28%. Japan's market fell 16%. Many Asian currencies also declined
significantly.
The Fund outperformed its benchmark, in part because we sold its stake in
Malaysia during the second quarter. Malaysia's market was down 65% in U.S.
dollar terms during the period. In September, we sold the Fund's entire
position in Hong Kong. That move helped the Fund, as Hong Kong's market lost
43% during the period. The Fund also benefited from its relatively low
investment in Japan, and from our strategy of hedging some of the Fund's
currency exposure. The currency-hedging strategy added more than a full
percentage point to the Fund's return.
Late in the period, we increased the Fund's exposure to Japan to roughly
equal the weighting of our benchmark. That shift reflected our belief that
Japanese stocks are undervalued. For example, the price-to-book and
price-to-sales ratios of the market are the cheapest of any developed market
in the EAFE index.
The Fund also benefited from its overweighting in Europe. Italy (which
delivered a 25.7% return in U.S. dollar terms during the period) and Spain
(18.9% return) were overweighted, while the Fund had neutral weightings in
France (3% return) and Germany (flat return). During the period, we trimmed
the Fund's overweight in the United Kingdom (12.5% return) to neutral, in
part due to concerns that the pound is somewhat overvalued./2/
The Fund's holdings within each country are broadly diversified among
industries and sectors. This reflects our belief that an emphasis on choosing
the right allocation among countries rather than the right individual stocks
will determine the Fund's performance.
We will continue to emphasize countries that offer attractive valuations and
good fundamentals. Although valuations in Europe are higher than they have
been historically, they look reasonable compared to interest rates and
earnings growth rates. As a result, we will retain the Fund's overweighting
in Europe. The Fund will remain underweight in Asia, because we have doubts
about Asian companies' chances for earnings growth and think that those
markets will trade lower. We also will continue to use currency hedging as a
defensive measure. The Fund remains underweighted in the United States
compared to global markets, because we are concerned about the outlook for
domestic earnings growth; moreover, U.S. stock valuations are expensive after
seven years of gains.
The Fund's top five holdings as of January 31, 1998, were Novartis (1.8% of
net assets), Glaxo Holdings (1.6%), Nippon Telegraph (1.6%), British
Petroleum Company (1.5%) and Lloyds (1.5)./2/
+ International investing involves increased risk and volatility.
/1/ With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A Shares was -6.88% for the six-month period.
/2/ The composition of the Fund's portfolio is subject to change.
12
<PAGE>
Growth of $10,000 Invested in the Fountain Square International Equity Fund
[LINE GRAPH APPEARS HERE]
Investment Investment Morgan Stanley
C Shares** A Shares* International EAFE Index
- --------------------------------------------------------------------------------
8/18/94 10,000 9,550 10,000
Jan-95 9,010 8,605 9,449
Jan-96 10,830 10,344 11,007
Jan-97 11,072 10,647 11,251
Jan-98 12,620 12,180 12,443
Average Annual Total Return for the Period Ended January 31, 1998/1/
- --------------------------------------------------------------------------------
Investment A* Investment C**
------------ ------------
1 Year.......................................... 9.29% ............. 13.98%
Start of Performance (8/18/94).................. 5.87% .............. 6.96%
- --------------------------------------------------------------------------------
*Reflects the maximum sales charge of 4.50%.
**Investment C Shares were initially offered April 19, 1996. The
performance figures for Investment C Shares for periods prior to such date
represent the performance for Investment A Shares of the Fund. Investment C
Shareholders that redeem within one year of purchase are subject to a
contingent deferred sales charge of 1.00%. Investment C Shares were also
subject to administrative service fees at a maximum rate of 0.25% and Rule
12b-1 fees of up to 1.00% of the average daily net asset value of Investment
C Shares. If these 12b-1 fees were reflected, performance would have been
lower. The maximum sales charge for Investment A Shares is 4.50%.
The International Equity Fund's performance is measured against the Morgan
Stanley Capital International EAFE Index, an unmanaged index generally
representative of the foreign stock market. The Index does not reflect the
deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The Fund's performance reflects the
deduction of fees for these value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
13
<PAGE>
- --------------------------------------------------------------------------------
Fountain Square Bond Fund For Income
During the six months ended January 31, 1998, the Fund distributed income of
$0.36 per share. Its net asset value per share increased from $12.19 to
$12.25, for a total return of 3.95% on Investment A Shares (before deduction
of sales charge)./1/ That return compares to a 4.27% return for the Fund's
benchmark, the Lehman Brothers Intermediate Government Corporate Bond Index,
and a 3.46% return for the Lipper Short-Intermediate Investment Grade Bond
Funds Average.
The economy grew at a moderate pace, and inflation remained low during the
period. Furthermore, investors worried that the severe economic turmoil in
Asia would eventually slow economic growth in the United States. Therefore,
interest rates declined, and bond prices rose significantly.
The Fund seeks to provide shareholders with stable current income, and
therefore takes a somewhat cautious approach. For example, the Fund's average
maturity began the period at 4.1 years and finished at 4 years. Meanwhile,
the Fund's already high average credit quality rose from AA2 to AA1. That
strategy benefited the Fund, as investors worried about the Asian crisis
flocked to high-quality issues./2/
At the same time, we took steps to maintain the Fund's commitment to
providing shareholders with attractive levels of current income. In
particular, we overweighted the Fund's exposure to corporate bonds relative
to its index. Corporate bonds made up 44.9% of the Fund's net assets as of
January 31, 1998; that compares to 38.8% for the benchmark. Treasury
securities made up only 26% of the portfolio at the end of the period, versus
64% of the benchmark./2/
We expect that the bond market will be volatile during the coming months.
Bond prices already have climbed to reflect the possibility that the Asian
crisis will reduce the growth rate of the U.S. economy. As of yet, however,
there is no economic data to confirm that hypothesis. Thus, investors likely
will react strongly to economic data that supports or weakens the argument
that there is a clear connection between the Asian crisis and our domestic
economy.
On balance, we expect that interest rates will remain stable or perhaps
decline slightly by the end of the year. We do not foresee any reduction in
short-term rates by the Federal Reserve in the near term; however, the Fed
could lower rates later in the year if the economy slows. In that
environment, we will extend the Fund's average maturity modestly to lock-in
higher yields as rates fall. We will continue to focus on issues with strong
credit quality to help reduce risk to shareholders. We also will emphasize
corporate bonds in the Fund's portfolio, to help provide an attractive level
of current income to shareholders.
/1/With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A Shares was 2.55% for the six-month period.
/2/The composition of the Fund's portfolio is subject to change.
14
<PAGE>
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in the Fountain Square Bond Fund For Income
[LINE GRAPH APPEARS HERE]
Lipper
Short-Intermediate
Investment Lehman Brothers
Investment Investment Grade Bond Intermediate Gov't
C Shares** A Shares* Funds Average Corporate Index
Jan-88 10,000 9,550 10,000 10,000
Jan-89 10,455 10,085 10,419 10,521
Jan-90 11,366 11,065 11,349 11,664
Jan-91 12,376 12,164 12,412 12,947
Jan-92 13,741 13,649 13,931 14,557
Jan-93 14,964 15,016 15,395 16,049
Jan-94 15,946 16,591 16,786 17,308
Jan-95 14,893 15,238 16,255 17,066
Jan-96 17,055 17,630 18,242 19,519
Jan-97 17,127 17,882 18,855 20,216
Jan-98 18,413 19,384 20,202 22,007
Average Annual Total Return for the Period Ended January 31, 1998/1/
------------------------------------------------------------------------
Investment A* Investment C**
------------ ------------
1 Year.....................................3.51% .............7.52%
5 Year.....................................4.27% .............4.24%
10 Year....................................6.85% .............6.29%
------------------------------------------------------------------------
- --------------------------------------------------------------------------------
/1/ The quoted performance of the Bond Fund for Income includes performance
of certain collectively managed accounts advised by Fifth Third Bank, for
periods dating back to 1/31/88 and prior to the Bond Fund For Income's
commencement of operations on 1/27/97, as adjusted to reflect the expenses
associated with the Fund (without waivers or reimbursements). These
collectively managed accounts were not registered with the Securities and
Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If such accounts had
been registered, the performance may have been adversely affected. The
performance shown reflects the deduction of fees for value-added services
associated with a mutual fund, such as investment management and fund
accounting fees. The performance also reflects reinvestment of all dividends
and capital-gains distributions.
* Reflects the maximum sales charge of 4.50%.
** Investment C Shareholders that redeem within one year of purchase are
subject to a contingent deferred sales charge of 1.00%. Investment C Shares
were also subject to administrative service fees at a maximum rate of 0.25%
and Rule 12b-1 fees of up to 1.00% of the average daily net asset value of
Investment C Shares. If these 12b-1 fees were reflected, performance would
have been lower.
The Fund's performance is measured against the Lehman Brothers Intermediate
Government Corporate Index, an unmanaged index generally representative of
the performance of the bond market as a whole. The Fund's performance is also
measured against the Lipper Short-Intermediate Investment Grade Bond Funds
Average, representative of the average of the total returns reported by all
of the mutual funds designated by Lipper Analytical Services, Inc. falling
into this category. The Lehman Brothers Intermediate Government Corporate
Index does not reflect the deduction of fees associated with a mutual fund.
The Lipper Short-Intermediate Investment Grade Bond Funds Average and the
Fund's performance reflect the deduction of fees for these value-added
services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
15
<PAGE>
- --------------------------------------------------------------------------------
Fountain Square Quality Bond Fund
The Fund delivered a total return of 4.40% on Investment A Shares (before
deduction of sales charge)/1/ during the six months ended January 31, 1998.
That return reflected an income distribution of $0.29 per share and an
increase in the Fund's net asset value from $9.85 to $9.98 per share. The
Fund's benchmark, the Lehman Brothers Aggregate Bond Index and the Lipper
Intermediate Investment Grade Debt Funds Average, returned 4.90% and 4.21%,
respectively, for the period.
Interest rates declined considerably during most of the period, due to
moderate economic growth, continued low inflation and investor concerns that
financial turmoil in Asia would ultimately slow U.S. economic growth. The
yield on the 30-year Treasury bond fell to 5.87% at the end of the period,
down from 6.30% in August. As a result, bond prices-which generally move in
the opposite direction of rates-rose significantly.
The average maturity of the Fund fell from 8.5 years on August 1, 1997, to 7
years by January 31, 1998. The Fund benefited from shifts in the yield curve,
which allowed it to outperform the Fund's index without increasing
shareholders' risk over the period. For example, 30-year securities offered a
very slight yield to maturity advantage--only 0.22 percentage points--over
two-year securities early in the period. Therefore, we sold the Fund's
30-year positions and purchased shorter-term securities. When the yield
advantage on long-term securities increased in January, we increased our
holdings in longer-term bonds.
We continued to hold issues with very strong credit quality, to help reduce
risks to shareholders. The average credit quality of the Fund's holdings
during the period remained high at AA1. The Fund also benefited from our
decision to underweight mortgage securities, which typically underperform
Treasuries when interest rates decline. In general, we were underweighted in
agency securities and overweighted in Treasuries and high-quality corporate
securities.
Looking ahead, interest rates likely will remain relatively stable or perhaps
decline somewhat during the next 12 months. We believe Federal Reserve policy
will be neutral in the short term, although they may act to reduce short-term
rates if the economy slows later in the year. Meanwhile, we believe the bond
market will react strongly to any piece of economic data that portrays
continued vibrant economy by decreasing prices. That is because investors
have already priced in the possibility of an economic slowdown in the United
States due to the Asian crisis--but there is no economic data out yet to back
that up.
We will continue to focus on high-quality Treasury and corporate bonds,
underweighting mortgage-backed securities and taking advantage of yield
discrepancies that occur between different maturity sectors of the market. In
addition, we will maintain a neutral to relatively long average maturity,
since we believe that interest rates will eventually trend downward.
/1/ With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A shares was -0.29% for the six-month period.
16
<PAGE>
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in the Fountain Square Quality Bond Fund
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers Lipper Intermediate
Intermediate Govt. Investment Grade Debt Investment A Investment C
Corporate Index Funds Average Shares * Shares **
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jan-88 10,000 10,000 9,550 10,000
- ---------------------------------------------------------------------------------------
Jan-89 10,521 10,416 10,008 10,426
- ---------------------------------------------------------------------------------------
Jan-90 11,664 11,381 10,953 11,366
- ---------------------------------------------------------------------------------------
Jan-91 12,947 12,486 12,013 12,408
- ---------------------------------------------------------------------------------------
Jan-92 14,557 14,186 13,459 13,847
- ---------------------------------------------------------------------------------------
Jan-93 16,049 15,755 14,704 15,081
- ---------------------------------------------------------------------------------------
Jan-94 17,308 17,401 15,783 16,166
- ---------------------------------------------------------------------------------------
Jan-95 17,066 16,692 15,259 15,650
- ---------------------------------------------------------------------------------------
Jan-96 19,519 19,442 17,526 18,011
- ---------------------------------------------------------------------------------------
Jan-97 20,216 20,139 17,809 18,200
- ---------------------------------------------------------------------------------------
Jan-98 22,007 22,170 19,504 19,743
- ---------------------------------------------------------------------------------------
</TABLE>
Average Annual Total Return for the Period Ended January 31, 1998/1/
- --------------------------------------------------------------------------------
Investment A* Investment C**
------------ ------------
1 Year...................................4.54%.................8.48%
5 Year...................................4.84%.................5.54%
10 Year..................................6.92%.................7.05%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
/1/ The quoted performance of the Quality Bond Fund includes performance of
certain collectively managed accounts advised by Fifth Third Bank, for
periods dating back to 1/31/88 and prior to the Quality Bond Fund's
commencement of operations on 11/20/92, as adjusted to reflect the expenses
associated with the Fund (without waivers or reimbursements). These
collectively managed accounts were not registered with the Securities and
Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If such accounts had
been registered, the performance may have been adversely affected. The
performance shown reflects the deduction of fees for value-added services
associated with a mutual fund, such as investment management and fund
accounting fees. The performance also reflects reinvestment of all dividends
and capital-gains distributions.
* Reflects the maximum sales charge of 4.50%.
** Investment C Shares were initially offered April 19, 1996. The
performance figures for Investment C Shares for periods prior to such date
represent the performance for Investment A Shares of the Fund. Investment C
Shareholders that redeem within one year of purchase are subject to a
contingent deferred sales charge of 1.00%. The Investment A Shares are
subject to a maximum front-end sales charge of 4.50%. Investment C Shares are
also subject to administrative service fees at a maximum rate of 0.25% and
Rule 12b-1 fees of up to 1.00% of the average daily net asset value of
Investment C Shares. If these 12b-1 fees were reflected, performance would
have been lower. Investment A Shares are subject to Rule 12b-1 fees of up to
0.35% of the average daily net asset value of Investment A Shares.
The Fund's performance is measured against the Lehman Brothers Aggregate Bond
Index, an unmanaged index generally representative of the performance of the
bond market as a whole, and the Lipper Intermediate Investment Grade Debt
Funds Average, representative of the average of the total returns reported by
all of the mutual funds designated by Lipper Analytical Services, Inc.
falling into this category. The Lehman Brothers Aggregate Bond Index does not
reflect the deduction of fees associated with a mutual fund. The Lipper
Intermediate Investment Grade Debt Funds Average and the Fund's performance
reflect the deduction of fees for these value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
17
<PAGE>
- --------------------------------------------------------------------------------
Fountain Square U.S. Government Securities Fund
During the six months ended January 31, 1998, the Fund distributed $0.27 per
share. Its net asset value per share increased from $9.75 to $9.87, for a
total return of 4.10% on Investment A Shares (before deduction of sales
charge)./1/ The return compares to 4.27% and 3.58% returns for the Fund's
benchmarks, the Lehman Brothers Intermediate Government Bond Index and the
Lipper Short-Intermediate Government Bond Funds Average, respectively.
Although bond prices declined early in the period, prices rose considerably
beginning in October. The rally reflected a number of factors, including
continued moderate economic growth and low inflation. In addition, the
financial crisis in Asia seemed likely to lead to slower economic growth in
the United States. Those factors prevented the Federal Reserve from taking
any action that would boost interest rates.
We extended the Fund's average maturity from 2.9 years to 3.1 years early in
the period as interest rates rose. That strategy benefited the Fund as rates
declined later. We also continued to take advantage of shifts in the relative
yields of securities with different maturities. For example, we shifted
assets from seven-year Treasury bonds to four-year Treasury bonds when the
latter seemed to offer a more attractive outlook. At the same time, we put
more cash to work in the bond market to avoid reducing the overall average
maturity of the portfolio.
The Fund maintained an AAA average credit rating. We underweighted callable
securities and mortgage issues in favor of Treasuries, which made up 57.1% of
the Fund's net assets at the end of the period. That approach also helped
boost the Fund's returns, as the Asian crisis encouraged a flight by
investors to the highest quality issues./2/
Looking ahead, we will keep a close eye on inflationary pressures. Most
economists believe that any wage pressures will be dampened by slower
economic growth in the United States due to fallout from the Asian crisis.
However, we will watch closely for inflationary signs that contradict that
outlook.
We expect interest rates to continue to decline over the long term. However,
bond market volatility will likely offer opportunities to make trades that
will enhance the Fund's returns. In particular, we will lengthen the
portfolio slightly when bond prices decline, and shorten the Fund's average
maturity when the market rallies. As always, we seek to maintain a steady
income for shareholders while managing the Fund's total return.
/1/ With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A Shares was -0.59% for the six-month period.
/2/ The composition of the Fund's portfolio is subject to change.
<PAGE>
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in the Fountain Square U.S. Government
Securities Fund
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers Lipper Short-Intermediate
Intermediate Govt. U.S. Government Bond Investment A Investment C
Bond Index Funds Average Shares * Shares **
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jan-88 10,000 10,000 9,550 10,000
- ---------------------------------------------------------------------------------------
Jan-89 10,486 10,299 9,937 10,327
- ---------------------------------------------------------------------------------------
Jan-90 11,627 11,287 10,737 11,105
- ---------------------------------------------------------------------------------------
Jan-91 12,950 12,508 11,737 12,101
- ---------------------------------------------------------------------------------------
Jan-92 14,484 13,874 12,738 13,070
- ---------------------------------------------------------------------------------------
Jan-93 15,929 15,113 13,553 13,863
- ---------------------------------------------------------------------------------------
Jan-94 17,085 16,070 14,385 14,713
- ---------------------------------------------------------------------------------------
Jan-95 16,893 15,868 14,131 14,453
- ---------------------------------------------------------------------------------------
Jan-96 19,179 17,730 15,877 16,240
- ---------------------------------------------------------------------------------------
Jan-97 19,866 18,434 16,215 16,482
- ---------------------------------------------------------------------------------------
Jan-98 21,596 19,823 17,536 17,658
- ---------------------------------------------------------------------------------------
</TABLE>
Average Annual Total Return for the Period Ended January 31, 1998/1/
- --------------------------------------------------------------------------------
Investment A* Investment C**
------------ ------------
1 Year.....................................3.33%................7.14%
5 Year.....................................4.32%................4.96%
10 Year....................................5.78%................5.86%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
/1/ The quoted performance of the U.S Government Securities Fund includes
performance of certain collectively managed accounts advised by Fifth Third
Bank, for periods dating back to 1/31/88 and prior to the U.S. Government
Securities Fund's commencement of operations on 11/20/92, as adjusted to
reflect the expenses associated with the Fund (without waivers or
reimbursements). These collectively managed accounts were not registered with
the Securities and Exchange Commission and, therefore, were not subject to
the investment restrictions imposed by law on registered mutual funds. If
such accounts had been registered, the performance may have been adversely
affected. The performance shown reflects the deduction of fees for
value-added services associated with a mutual fund, such as investment
management and fund accounting fees. The performance also reflects
reinvestment of all dividends and capital-gains distributions.
*Reflects the maximum sales charge of 4.50%.
**Investment C Shares were initially offered April 19, 1996. The
performance figures for Investment C Shares for periods prior to such date
represent the performance for Investment A Shares of the Fund. Investment C
Shareholders that redeem within one year of purchase are subject to a
contingent deferred sales charge of 1.00%. The Investment A Shares are
subject to a maximum front-end sales charge of 4.50%. Investment C Shares are
also subject to administrative service fees at a maximum rate of 0.25% and
Rule 12b-1 fees of up to 1.00% of the average daily net asset value of
Investment C Shares. If these 12b-1 fees were reflected, performance would
have been lower. Investment A Shares are subject to Rule 12b-1 fees of up to
0.35% of the average daily net asset value of Investment A Shares.
The Fund's performance is measured against the Lehman Brothers Intermediate
Government Bond Index, an unmanaged index generally representative of
intermediate-term government bonds and the Lipper Short-Intermediate U.S.
Government Bond Funds Average, representative of the average of the total
returns reported by all of the mutual funds designated by Lipper Analytical
Services, Inc. falling into this category. The Lehman Brothers Intermediate
Government Bond Index does not reflect the deduction of fees associated with
a mutual fund. The Lipper Short-Intermediate U.S. Government Bond Funds
Average and the Fund's performance reflect the deduction for fees for these
value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
19
<PAGE>
- --------------------------------------------------------------------------------
Fountain Square Municipal Bond Fund/+/
During the six months ended January 31, 1998, the Fund delivered a total
return of 2.97% on Investment A Shares (before deduction of sales charge)./1/
Its net asset value remained steady at $12.33 per share, and shareholders
received an income distribution of $0.27. The Fund's return compared to 3.61%
and 4.21% total returns for its benchmarks, the Lehman Brothers 7-Year
Municipal Bond Index and the Lipper Intermediate Investment Grade Debt Funds
Average, respectively.
Municipal bond yields rose early in the period, along with yields on Treasury
securities. But while Treasury rates fell sharply beginning in October due to
the crisis in Asia, municipal bond yields remained relatively stable. Yields
on 10-year Treasury bonds declined 0.49 percentage points during the period,
from 6.6% to 5.5%. By contrast, yields on comparable municipal bonds declined
only slightly, from 4.5% to 4.3%. One reason was that investors were eager to
take shelter in the highest quality issues, such as Treasuries. In addition,
a relatively heavy supply of municipal issues in January helped support
tax-exempt yields.
At the end of November, 30-year municipal bonds yielded 85% of the yield on
30-year Treasuries. But as Treasury yields declined, that percentage rose to
90%, making municipal bonds more attractive relative to Treasuries. Although
the percentage declined again to 84% in December, municipal bonds remained
attractive.
We lengthened the Fund's duration from 5.62 years to around 5.98% years when
yields rose during August. We maintained a similar duration through December
as the municipal market rallied. But we allowed new cash flow to gradually
shorten the Fund's duration in January.
We maintained the Fund's high credit quality, with an overall credit rating
of AA1. We enhanced the credit quality of the portfolio by purchasing select
insured bonds and by shifting some assets from revenue bonds into general
obligation bonds (GOs). The Fund's growing assets also allowed us to take
larger positions, helping to keep trading costs lower.
We expect that as the Treasury bond market becomes less volatile, the ratio
of municipal bond yields to Treasury yields will return to normal from its
relatively high current level. However, U.S. interest rates are not likely to
decline further until we see the domestic economy slowing in response to the
Asian crisis. As always, we will continue to pursue the Fund's primary
objective--seeking to protect shareholders' income stream while seeking
attractive opportunities to boost the Fund's yield.
/+/ Some or all of the income may be subject to the federal alternative
minimum tax and to certain state and local taxes.
/1/ With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A Shares was -1.67% for the six-month period.
20
<PAGE>
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in the Fountain Square Municipal Bond Fund
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers
Lipper Intermediate Municipal Bond Index/
Investment Investment Municipal Debt Lehman Brothers 7-Year
Date C Shares** A Shares* Funds Average Municipal Bond Index
- ---- ----------- ---------- ------------------- ---------------------
<S> <C> <C> <C> <C>
Jan-88 10,000 9,550 10,000 10,000
Jan-89 10,295 9,936 10,508 10,857
Jan-90 10,873 10,591 11,198 11,729
Jan-91 11,538 11,362 12,120 13,114
Jan-92 12,497 12,429 13,287 14,463
Jan-93 13,124 13,187 14,464 15,817
Jan-94 13,838 14,023 15,931 17,400
Jan-95 13,444 13,779 15,493 17,054
Jan-96 14,514 15,013 17,344 19,293
Jan-97 14,846 15,514 17,890 20,013
Jan-98 15,847 16,681 18,731 21,694
</TABLE>
Average Annual Total Return for the Period Ended January 31, 1998/1/
-------------------------------------------------------------------------
Investment A* Investment C**
------------ ------------
1 Year....................................2.68%..............6.74%
5 Year....................................3.86%..............3.84%
10 Year...................................5.25%..............4.71%
-------------------------------------------------------------------------
- --------------------------------------------------------------------------------
/1/ The quoted performance of the Municipal Bond Fund includes performance of
certain collectively managed accounts advised by Fifth Third Bank, for
periods dating back to 1/31/88 and prior to the Municipal Bond Fund's
commencement of operations on 1/27/97, as adjusted to reflect the expenses
associated with the Fund (without waivers or reimbursements). These
collectively managed accounts were not registered with the Securities and
Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If such accounts had
been registered, the performance may have been adversely affected. The
performance shown reflects the deduction of fees for value-added services
associated with a mutual fund, such as investment management and fund
accounting fees. The performance also reflects reinvestment of all dividends
and capital-gains distributions.
* Reflects the maximum sales charge of 4.50%.
** Investment C Shareholders that redeem within one year of purchase are
subject to a contingent deferred sales charge of 1.00%. Investment C Shares
were also subject to administrative service fees at a maximum rate of 0.25%
and Rule 12b-1 fees of up to 1.00% of the average daily net asset value of
Investment C Shares. If these 12b-1 fees were reflected, performance would
have been lower.
The Fund's performance is measured against the Lehman Brothers Municipal Bond
Index, from 1/31/88 to 1/31/90, prior to the creation of the Lehman Brothers
7-Year Municipal Bond Index against which the performance is now measured.
Both Lehman Brothers indices are unmanaged indices that are generally
representative of municipal bonds with intermediate maturities. The Fund's
performance is also measured against the Lipper Intermediate Municipal Debt
Funds Average, which is representative of the average of the total returns
reported by all of the mutual funds designated by Lipper Analytical Services,
Inc. falling into this category. The Lehman Brothers Municipal Bond Index and
the Lehman Brothers 7-Year Municipal Bond Index do not reflect the deduction
of fees associated with a mutual fund. The Lipper Intermediate Municipal Debt
Funds Average and the Fund's performance reflect the deduction of fees for
these value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
21
<PAGE>
- --------------------------------------------------------------------------------
Fountain Square Ohio Tax Free Bond Fund/+/
The Fund posted a total return of 3.04% on Investment A Shares (before
deduction of sales charge)/1/ during the six months ended January 31, 1998.
That return reflected an income distribution of $0.22 per share and an
increase in the Fund's net asset value from $10.31 to $10.36 per share. The
Fund's benchmarks the Lehman Brothers 7-Year Municipal Bond Index and the
Lipper Intermediate Municipal Debt Funds Average, returned 3.61% and 3.18%,
respectively, for the period.
The Ohio municipal market reflected many of the factors that drove the
performance of the broader tax-exempt market. Tax-exempt bond yields rose
early in the period, along with yields on Treasury securities. But the two
sectors of the bond market diverged somewhat after that: Treasury rates fell
significantly beginning in October due to the Asian economic crisis, while
municipal bond yields remained relatively stable.
For example, yields on 10-year Treasury bonds declined 0.49% during the
period, from 6.0% to 5.5%. By contrast, yields on Ohio 10-year general
obligation bonds (GOs) declined more modestly, from 4.5% to 4.3%. The
difference reflected the fact that investors, worried by the Asian crisis,
were eager to take shelter in the highest quality issues. Moreover, the Ohio
tax-exempt market saw heavy issuance in January, which helped support yields.
We lengthened the Fund's duration from 5.62 years to around 5.78 years when
yields rose in August. We maintained a similar duration through December as
the municipal market rallied. However, we allowed new cash flow to gradually
shorten the Fund's duration in January.
We maintained the Fund's high credit quality, with an average rating of AA.
We boosted that rating by adding to the Fund's insured bonds, which were
relatively inexpensive, compared to non-insured bonds of comparable quality.
In addition, the Fund's assets continued to grow, allowing us to take larger
positions, which helps to keep trading costs lower.
Ohio's economy remains strong and diverse, and we will continue to maintain
the Fund's high credit quality by purchasing insured bonds and GOs when they
are trading at attractive prices. We also will look for opportunities to
shift from callable securities to non-callable issues. That approach is
designed to help the Fund take advantage of interest rate declines, which are
likely to occur as the Asian financial crisis affects the U.S. economy. In
addition, we will look for chances to sell small odd-lot positions when they
can fetch attractive prices, and use the proceeds to purchase larger blocks
of individual securities.
If the large supply of Ohio municipal issues pushes rates to attractive
levels, we may extend the Fund's duration. However, we will keep an eye on
economic forces, and will act to reduce the Fund's risks if inflationary
pressures threaten to cause a slump in the municipal market.
/+/ Some or all of the income may be subject to the federal alternative
minimum tax and to certain state and local taxes.
/1/ With the maximum sales charge of 4.50%, the Fund's total return for the
Investment A Shares was -1.60% for the six-month period.
22
<PAGE>
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in the Fountain Square Ohio Tax Free Bond Fund
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers
Lipper Intermediate Municipal Bond Index/
Investment Investment Municipal Debt Lehman Brothers 7-Year Lehman Brothers 5-Year
Date C Shares** A Shares* Funds Average Municipal Bond Index Municipal Bond Index
- ---- ---------- ---------- ------------------- --------------------- ----------------------
<S> <C> <C> <C> <C> <C>
Jan-88 10,000 9,550 10,000 10,000 10,000
Jan-89 10,388 10,013 10,508 10,857 10,540
Jan-90 11,054 10,693 11,198 11,729 11,353
Jan-91 11,748 11,414 12,120 13,114 12,402
Jan-92 12,843 12,529 13,287 14,463 13,657
Jan-93 13,551 13,277 14,464 15,817 14,822
Jan-94 14,531 14,253 15,931 17,400 16,068
Jan-95 14,083 13,813 15,493 17,054 15,917
Jan-96 15,878 15,573 17,344 19,293 17,730
Jan-97 16,145 15,931 17,890 20,013 18,359
Jan-98 17,257 17,148 18,731 21,694 19,644
</TABLE>
Average Annual Total Return for the Period Ended January 31, 1998(1)
------------------------------------------------------------------------
Investment A* Investment C**
------------ ------------
1 Year...................................2.85%.............6.89%
5 Year...................................4.29%.............4.95%
10 Year..................................5.54%.............5.61%
------------------------------------------------------------------------
- --------------------------------------------------------------------------------
/1/ The quoted performance of the Ohio Tax Free Bond Fund includes
performance of certain collectively managed accounts advised by Fifth Third
Bank, for periods dating back to 1/31/88 and prior to the Ohio Tax Free Bond
Fund's commencement of operations on 5/27/93, as adjusted to reflect the
expenses associated with the Fund (without waivers or reimbursements). These
collectively managed accounts were not registered with the Securities and
Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If such accounts had
been registered, the performance may have been adversely affected. The
performance shown reflects the deduction of fees for value-added services
associated with a mutual fund, such as investment management and fund
accounting fees. The performance also reflects reinvestment of all dividends
and capital-gains distributions.
* Reflects the maximum sales charge of 4.50%.
** Investment C Shares were initially offered April 19, 1996. The
performance figures for Investment C Shares for periods prior to such date
represent the performance for Investment A Shares of the Fund. Investment C
Shareholders that redeem within one year of purchase are subject to a
contingent deferred sales charge of 1.00%. The Investment A Shares are
subject to a maximum sales charge of 4.50%. Investment C Shares are also
subject to administrative service fees at a maximum rate of 0.25% and Rule
12b-1 fees of up to 1.00% of the average daily net asset value of Investment
C Shares. If these 12b-1 fees were reflected, performance would have been
lower. Investment A Shares are subject to Rule 12b-1 fees of up to 0.35% of
the average daily net asset value of Investment A Shares.
The Fund's performance is measured against the Lehman Brothers Municipal Bond
Index from 1/31/88 to 1/31/90, prior to the creation of the Lehman Brothers
7-Year Municipal Bond Index, against which the Fund's performance is now
measured. The Fund's performance is also measured against the Lehman 5-Year
Municipal Bond Index. The Lehman Brothers indices are unmanaged indices
generally representative of the intermediate-term municipal bond market. The
Fund's performance is also measured against the Lipper Intermediate Municipal
Debt Funds Average, which is representative of the average of the total
returns reported by all of the mutual funds designated by Lipper Analytical
Services, Inc. falling into this category. The Lehman Brothers 5-Year and
Lehman 7-Year Municipal Bond Indices do not reflect the deduction of fees
associated with a mutual fund. The Lipper Intermediate Municipal Debt Funds
Average and the Fund's performance do reflect the deduction of fees for these
value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
23
<PAGE>
- --------------------------------------------------------------------------------
Fountain Square Money Market Funds/+/
At the start of the recent six-month period ended January 31, 1998, investors
were uncertain about the strength of the economy and were concerned about the
potential for wage inflation and the possibility that the Federal Reserve
would change short-term interest rates. However, moderate economic growth,
low inflation and news of economic turmoil in Asia caused interest rates to
decline until late December. In that environment, Fed policy remained
unchanged.
In late December, short-term rates temporarily increased due to certain
year-end anomalies. For example, the Federal Funds Rate tends to spike during
the final days of December, boosting rates on discount notes and commercial
paper. Rates continued to be volatile in January, due in part to investor
concerns about the Asian currency crisis.
During the period, the Funds' average maturities ranged between 35 and 45
days--a neutral, fairly conservative position relative to the Funds' peer
group. We did not feel that economic signals were clear enough to justify a
large bet on the direction of interest rates. That conservative strategy
benefited the Funds' returns, as very short-term overnight securities traded
better than longer-term issues during much of the period.
We further boosted returns in the Commercial Paper Fund by increasing our
investments in various types of commercial paper and repo's. That helped the
Fund capture extra yield when yields rose in late December.
We do not expect the Fed to make any changes to short-term rates until at
least midsummer. At that point, second-quarter corporate earnings will be
released, which will indicate the effects of the Asian crisis on our economy.
Meanwhile, we will maintain the Funds' current strategies, in an effort to
provide attractive yields to shareholders without exposing them to
unnecessary risk.
Fountain Square Commercial Paper Fund is a no-load money market mutual fund
that invests primarily in high-quality commercial paper. Commercial paper
represents very short-term loans made by banks and other corporations.
Fountain Square Government Cash Reserves Fund is a no-load money market
mutual fund that invests in short-term U.S. government securities. The Fund
limits its investments to U.S. government securities paying interest that
generally would be exempt from state income taxes.
Fountain Square U.S. Treasury Obligations Fund is a no-load money market fund
that invests in short-term U.S. Treasury obligations and repurchase
agreements fully collateralized by such Treasury securities.
/+/ Investments in the Funds are neither insured nor guaranteed by the U.S.
Government. Yields will fluctuate, and there can be no assurance that the
Funds will be able to maintain a stable NAV of $1.00 per share.
24
<PAGE>
Fountain Square Quality Growth Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ---------------------------------------------------- -----------
Common Stocks -- 97.0%
- --------------------------------------------------------------
Banking -- 7.7%
---------------------------------------------------
330,000 Bank of New York Co., Inc. $17,881,875
---------------------------------------------------
72,000 Mellon Bank Corp. 4,347,000
---------------------------------------------------
390,000 Norwest Corp. 14,235,000
--------------------------------------------------- -----------
Total 36,463,875
--------------------------------------------------- -----------
Business Services -- 1.0%
---------------------------------------------------
110,000 Cintas Corp. 4,592,500
--------------------------------------------------- -----------
Chemicals -- 3.8%
---------------------------------------------------
430,000 Praxair, Inc. 17,818,125
--------------------------------------------------- -----------
Computer Software & Services -- 7.9%
---------------------------------------------------
420,000 First Data Corp. 12,862,499
---------------------------------------------------
41,400 Microsoft Corp. (b) 6,176,363
---------------------------------------------------
575,000 Oracle Corp. (b) 13,368,749
---------------------------------------------------
115,000 Sun Microsystems, Inc. (b) 5,512,813
--------------------------------------------------- -----------
Total 37,920,424
--------------------------------------------------- -----------
Computer Systems & Equipment -- 6.6%
---------------------------------------------------
315,000 Cisco Systems (b) 19,864,688
---------------------------------------------------
92,000 Diebold, Inc. 4,577,000
---------------------------------------------------
115,000 Hewlett-Packard Co. 6,900,000
--------------------------------------------------- -----------
Total 31,341,688
--------------------------------------------------- -----------
Consumer Products -- 7.9%
---------------------------------------------------
150,000 Conagra, Inc. 4,743,750
---------------------------------------------------
240,000 Crown Cork & Seal Co., Inc. 11,880,000
---------------------------------------------------
340,000 Newell Co. 13,961,249
---------------------------------------------------
28,000 Procter & Gamble Co. 2,194,500
---------------------------------------------------
150,000 Sherwin Williams Co. 4,275,000
--------------------------------------------------- -----------
Total 37,054,499
--------------------------------------------------- -----------
Electrical Equipment -- 3.6%
---------------------------------------------------
150,000 Emerson Electric Co. 9,075,000
---------------------------------------------------
105,000 General Electric Co. 8,137,500
--------------------------------------------------- -----------
Total 17,212,500
--------------------------------------------------- -----------
-- Continued --
25
<PAGE>
Fountain Square Quality Growth Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- --------------------------------------------------- -----------
Common Stocks--Continued
- --------------------------------------------------------------
Electronics -- 7.9%
---------------------------------------------------
315,000 Adaptec, Inc. (b) 7,028,438
---------------------------------------------------
300,000 Intel Corp. 24,300,000
---------------------------------------------------
210,000 Molex, Inc. 5,722,500
--------------------------------------------------- -----------
Total 37,050,938
--------------------------------------------------- -----------
Financial -- 4.4%
---------------------------------------------------
470,000 Federal Home Loan Mortgage Corp. 20,915,000
--------------------------------------------------- -----------
Insurance -- 7.4%
---------------------------------------------------
50,000 Allstate Corp. 4,425,000
---------------------------------------------------
46,000 American International Group, Inc. 5,074,375
---------------------------------------------------
82,000 Cincinnati Financial Corp. 10,455,000
---------------------------------------------------
220,000 MGIC Investment Corp. 14,877,500
--------------------------------------------------- -----------
Total 34,831,875
--------------------------------------------------- -----------
Manufacturing -- 5.1%
---------------------------------------------------
380,000 Federal Signal Corp. 8,526,250
---------------------------------------------------
220,000 Illinois Tool Works 12,251,250
---------------------------------------------------
117,000 Zebra Technologies Corp., Class A (b) 3,246,750
--------------------------------------------------- -----------
Total 24,024,250
--------------------------------------------------- -----------
Media/Publishing -- 2.7%
---------------------------------------------------
255,000 Interpublic Group of Cos., Inc. 12,510,938
--------------------------------------------------- -----------
Medical Devices -- 2.7%
---------------------------------------------------
195,000 Guidant Corp. 12,528,750
--------------------------------------------------- -----------
Medical Distribution -- 1.5%
---------------------------------------------------
90,000 Cardinal Health, Inc. 6,969,375
--------------------------------------------------- -----------
Oil & Gas -- 2.7%
---------------------------------------------------
45,000 Chevron Corp. 3,366,563
---------------------------------------------------
136,000 Mobil Corp. 9,265,000
---------------------------------------------------
Total 12,631,563
--------------------------------------------------- -----------
Oil & Gas Extraction -- 0.7%
---------------------------------------------------
120,000 Ensco International 3,255,000
--------------------------------------------------- -----------
Pharmaceuticals -- 16.8%
---------------------------------------------------
170,000 American Home Products 16,224,375
---------------------------------------------------
40,000 Amgen, Inc. (b) 2,000,000
---------------------------------------------------
290,000 Johnson & Johnson 19,411,874
---------------------------------------------------
145,000 Pfizer, Inc. 11,880,938
---------------------------------------------------
260,000 Schering - Plough Corp. 18,817,500
---------------------------------------------------
-- Continued --
26
<PAGE>
Fountain Square Quality Growth Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- --------------------------------------------------- -----------
Common Stocks--Continued
- --------------------------------------------------------------
75,000 Warner Lambert, Inc. 11,287,500
--------------------------------------------------- -----------
Total 79,622,187
--------------------------------------------------- -----------
Retail -- 3.0%
---------------------------------------------------
235,000 Home Depot, Inc. 14,173,438
--------------------------------------------------- -----------
Telecommunications -- 1.7%
---------------------------------------------------
225,000 Cincinnati Bell 8,071,875
--------------------------------------------------- -----------
Transportation -- 1.9%
---------------------------------------------------
310,000 Comair Holdings, Inc. 8,738,125
--------------------------------------------------- -----------
Total Common Stocks 457,726,925
--------------------------------------------------- -----------
Demand Notes -- 0.0%
- --------------------------------------------------------------
Miscellaneous -- 0.0%
---------------------------------------------------
6,849 General Electric Demand Note 6,849
--------------------------------------------------- ----------
Total Demand Notes 6,849
--------------------------------------------------- ----------
Repurchase Agreements -- 3.0%
- --------------------------------------------------------------
14,026,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S.
Treasury Bills due 7/2/98 with a value of
$14,309,100. 14,026,000
--------------------------------------------------- -----------
Total Repurchase Agreements 14,026,000
--------------------------------------------------- -----------
Total Investments (Cost $326,005,150) (a) -- 100.0% 471,759,774
---------------------------------------------------
Other assets in excess of liabilities -- 0.0% 192,473
--------------------------------------------------- -----------
TOTAL NET ASSETS -- 100.0% $471,952,247
=================================================== ===========
Percentages indicated are based on net assets of $471,952,247.
(a) The cost of investments for federal tax purposes amounts to $326,005,150.
The net unrealized appreciation of investments on federal tax basis amounts
to $145,754,624, which is composed of $158,299,691 appreciation and
$12,545,067 depreciation at January 31, 1998.
(b) Non-income producing security.
See notes to financial statements.
27
<PAGE>
Fountain Square Equity Income Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- --------------------------------------------------- --------
Common Stock -- 98.2%
- --------------------------------------------------------------
Banking -- 13.7%
---------------------------------------------------
105,000 Bank of New York Co., Inc. $5,689,688
---------------------------------------------------
9,800 First Tennessee National Corp. 576,975
---------------------------------------------------
114,000 Mellon Bank Corp. 6,882,749
---------------------------------------------------
142,000 Norwest Bank 5,183,000
--------------------------------------------------- -----------
Total 18,332,412
--------------------------------------------------- -----------
Chemicals -- 3.8%
---------------------------------------------------
312,500 RPM, Inc. 5,000,000
--------------------------------------------------- -----------
Electrical Equipment -- 8.1%
---------------------------------------------------
65,000 Emerson Electric Co. 3,932,500
---------------------------------------------------
40,000 General Electric Co. 3,100,000
---------------------------------------------------
75,000 Hubbell, Inc. Class B 3,754,688
--------------------------------------------------- -----------
Total 10,787,188
--------------------------------------------------- -----------
Financial Services -- 9.7%
---------------------------------------------------
90,000 A.G. Edwards, Inc. 3,408,750
---------------------------------------------------
96,000 Federal National Mortgage Assoc. 5,928,000
---------------------------------------------------
162,000 United Asset Management Corp. 3,564,000
--------------------------------------------------- -----------
Total 12,900,750
--------------------------------------------------- -----------
Food -- 4.5%
---------------------------------------------------
45,000 Conagra, Inc. 1,423,125
---------------------------------------------------
82,000 H.J. Heinz Co. 4,545,875
--------------------------------------------------- -----------
Total 5,969,000
--------------------------------------------------- -----------
Insurance -- 4.8%
---------------------------------------------------
50,000 American General Corp. 2,818,750
---------------------------------------------------
12,000 Cincinnati Financial Corp. 1,530,000
---------------------------------------------------
40,300 Safeco Corp. 2,012,481
--------------------------------------------------- -----------
Total 6,361,231
--------------------------------------------------- -----------
Manufacturing -- 3.2%
---------------------------------------------------
190,000 Federal Signal Corp. 4,263,125
--------------------------------------------------- -----------
-- Continued --
28
<PAGE>
Fountain Square Equity Income Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
Office Equipment & Supplies -- 6.6%
---------------------------------------------------
94,000 Avery Dennison Corp. 4,218,250
---------------------------------------------------
100,000 Pitney-Bowes, Inc. 4,587,500
--------------------------------------------------- -----------
Total 8,805,750
--------------------------------------------------- -----------
Oil & Gas -- 9.3%
---------------------------------------------------
42,000 Amoco Corp. 3,417,750
---------------------------------------------------
65,000 Chevron Corp. 4,862,813
---------------------------------------------------
60,000 Mobil Corp. 4,087,500
--------------------------------------------------- -----------
Total 12,368,063
--------------------------------------------------- -----------
Pharmaceuticals -- 7.9%
---------------------------------------------------
14,000 Abbott Labs 991,375
---------------------------------------------------
38,900 Johnson & Johnson 2,603,869
---------------------------------------------------
20,000 Merck & Co., Inc. 2,345,000
---------------------------------------------------
20,000 Pfizer, Inc. 1,638,750
---------------------------------------------------
40,000 Schering - Plough Corp. 2,895,000
--------------------------------------------------- -----------
Total 10,473,994
--------------------------------------------------- -----------
Retail -- 3.0%
---------------------------------------------------
60,000 J.C. Penney Co., Inc. 4,042,500
--------------------------------------------------- -----------
Telecommunications -- 12.5%
---------------------------------------------------
135,000 Alltel Corp. 5,771,250
---------------------------------------------------
162,000 Ameritech Corp. 6,955,875
---------------------------------------------------
42,500 Bell Atlantic Corp. 3,933,906
--------------------------------------------------- -----------
Total 16,661,031
--------------------------------------------------- -----------
Transportation -- 4.4%
---------------------------------------------------
80,000 GATX Corp. 5,805,000
--------------------------------------------------- -----------
Utilities/Electric -- 5.3%
---------------------------------------------------
90,000 Cinergy Corp. 3,105,000
---------------------------------------------------
60,000 Duke Power 3,251,250
---------------------------------------------------
17,000 KU Energy Corp. 637,500
--------------------------------------------------- -----------
Total 6,993,750
--------------------------------------------------- -----------
Utilities/Natural Gas -- 1.4%
---------------------------------------------------
94,000 AGL Resources, Inc. 1,862,375
--------------------------------------------------- -----------
Total Common Stock 130,626,169
--------------------------------------------------- -----------
-- Continued --
29
<PAGE>
Fountain Square Equity Income Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Repurchase Agreements -- 1.5%
- ------------------------------------------------------------------
1,930,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury
Bills due 7/2/98 with a value of $1,971,476. 1,930,000
--------------------------------------------------- ------------
Total Repurchase Agreements 1,930,000
--------------------------------------------------- ------------
Total Investments (Cost $87,581,820) (a) -- 99.7% 132,556,169
--------------------------------------------------- ------------
Other assets in excess of liabilities -- 0.3% 338,741
--------------------------------------------------- ------------
TOTAL NET ASSETS -- 100.0% $132,894,910
=================================================== ============
Percentages indicated are based on net assets of $132,894,910.
*The cost of investments for federal tax purposes amounts to $87,581,820. The
net unrealized appreciation of investments on federal tax basis amounts to
$44,974,349, which is composed of $45,605,048 appreciation and $630,699
depreciation at January 31, 1998.
See notes to financial statements.
30
<PAGE>
Fountain Square Balanced Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- -----------
Common Stocks -- 62.1%
- ------------------------------------------------------------------
Banking -- 5.5%
-------------------------------------------------------
55,000 Bank of New York Co., Inc. $2,980,313
-------------------------------------------------------
35,000 First Tennessee National Corp. 2,060,625
-------------------------------------------------------
13,000 Mellon Bank Corp. 784,875
-------------------------------------------------------
70,000 Norwest Corp. 2,555,000
------------------------------------------------------- ----------
Total 8,380,813
------------------------------------------------------- ----------
Business Services -- 0.3%
-------------------------------------------------------
10,000 Cintas Corp. 417,500
------------------------------------------------------- ----------
Chemicals -- 1.9%
-------------------------------------------------------
70,000 Praxair, Inc. 2,900,625
------------------------------------------------------- ----------
Computer Software & Services -- 6.1%
-------------------------------------------------------
35,000 Electronics for Imaging, Inc. 586,250
-------------------------------------------------------
65,000 First Data Corp. 1,990,625
-------------------------------------------------------
50,000 Fiserv, Inc. (b) 2,593,750
-------------------------------------------------------
4,800 Microsoft Corp. (b) 716,100
-------------------------------------------------------
84,000 Oracle Corp. (b) 1,953,000
-------------------------------------------------------
25,000 Reynolds & Reynolds Co., Class A 496,875
-------------------------------------------------------
20,000 Sun Microsystems, Inc. (b) 958,750
------------------------------------------------------- ----------
Total 9,295,350
------------------------------------------------------- ----------
Computer Systems & Equipment -- 3.3%
-------------------------------------------------------
52,500 Cisco Systems (b) 3,310,781
-------------------------------------------------------
16,000 Diebold, Inc. 796,000
-------------------------------------------------------
16,000 Hewlett-Packard Co. 960,000
------------------------------------------------------- ----------
Total 5,066,781
------------------------------------------------------- ----------
Consumer Products -- 3.5%
-------------------------------------------------------
29,000 Conagra, Inc. 917,125
-------------------------------------------------------
38,000 Crown Cork & Seal Co., Inc. 1,881,000
-------------------------------------------------------
40,000 Newell Co. 1,642,500
-------------------------------------------------------
4,000 Procter & Gamble Co. 313,500
-------------------------------------------------------
20,000 Sherwin Williams Co. 570,000
------------------------------------------------------- ----------
Total 5,324,125
------------------------------------------------------- ----------
Distributors -- 0.3%
-------------------------------------------------------
12,000 Fastenal Co. 527,250
------------------------------------------------------- ----------
-- Continued --
31
<PAGE>
Fountain Square Balanced Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- ------------
Common Stocks--Continued
- ------------------------------------------------------------------
Electrical Equipment -- 2.2%
-------------------------------------------------------
20,000 Belden, Inc. 762,500
-------------------------------------------------------
25,000 Emerson Electric Co. 1,512,500
-------------------------------------------------------
14,000 General Electric Co. 1,085,000
------------------------------------------------------- ----------
Total 3,360,000
------------------------------------------------------- ----------
Electronics -- 7.2%
-------------------------------------------------------
105,000 Adaptec, Inc. (b) 2,342,813
-------------------------------------------------------
60,000 Computer Products, Inc. (b) 1,447,500
-------------------------------------------------------
20,000 Flextronics, International (b) 712,500
-------------------------------------------------------
50,000 Intel Corp. 4,049,999
-------------------------------------------------------
50,000 Molex, Inc. 1,362,500
-------------------------------------------------------
15,000 QLogic Corp. (b) 485,625
-------------------------------------------------------
27,562 Vishay Intertechnology, Inc. (b) 578,802
------------------------------------------------------- ----------
Total 10,979,739
------------------------------------------------------- ----------
Financial -- 2.3%
-------------------------------------------------------
77,000 Federal Home Loan Mortgage Corporation 3,426,500
------------------------------------------------------- ----------
General Building Contractors -- 0.5%
-------------------------------------------------------
45,000 Clayton Homes Inc. 753,750
------------------------------------------------------- ----------
Healthcare -- 1.1%
-------------------------------------------------------
17,000 First Health Group Corp. 809,625
-------------------------------------------------------
15,000 STERIS Corp. (b) 785,625
------------------------------------------------------- ----------
Total 1,595,250
------------------------------------------------------- ----------
Insurance -- 4.3%
-------------------------------------------------------
10,000 Allstate Corp. 885,000
-------------------------------------------------------
40,000 American Bankers Insurance Group, Inc. 2,210,000
-------------------------------------------------------
8,000 Cincinnati Financial Corp. 1,020,000
-------------------------------------------------------
36,000 MGIC Investment Corp. 2,434,500
------------------------------------------------------- ----------
Total 6,549,500
------------------------------------------------------- ----------
Manufacturing -- 2.8%
-------------------------------------------------------
40,000 Federal Signal Corp. 897,500
-------------------------------------------------------
35,000 Illinois Tool Works 1,949,063
-------------------------------------------------------
50,000 Zebra Technologies Corp., Class A (b) 1,387,500
------------------------------------------------------- ----------
Total 4,234,063
------------------------------------------------------- ----------
Media/Publishing -- 1.4%
-------------------------------------------------------
42,000 Interpublic Group of Cos., Inc. 2,060,625
------------------------------------------------------- ----------
-- Continued --
32
<PAGE>
Fountain Square Balanced Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- -----------
Common Stocks--Continued
- ------------------------------------------------------------------
Medical Devices -- 1.6%
-------------------------------------------------------
38,000 Guidant Corp. 2,441,500
------------------------------------------------------- -----------
Medical Distribution -- 0.5%
-------------------------------------------------------
9,000 Cardinal Health, Inc. 696,938
------------------------------------------------------- -----------
Oil & Gas -- 2.6%
-------------------------------------------------------
8,000 Chevron Corp. 598,500
-------------------------------------------------------
18,000 ENSCO International 488,250
-------------------------------------------------------
25,000 Global Marine 573,438
-------------------------------------------------------
22,000 Mobil Corp. 1,498,750
-------------------------------------------------------
40,000 Varco International, Inc. (b) 820,000
------------------------------------------------------- -----------
Total 3,978,938
------------------------------------------------------- -----------
Pharmaceuticals -- 8.5%
-------------------------------------------------------
27,000 American Home Products 2,576,813
-------------------------------------------------------
8,000 Amgen, Inc. 400,000
-------------------------------------------------------
47,000 Johnson & Johnson 3,146,062
-------------------------------------------------------
20,000 Pfizer, Inc. 1,638,750
-------------------------------------------------------
40,000 Schering - Plough Corp. 2,894,999
-------------------------------------------------------
14,000 Warner Lambert, Inc. 2,107,000
------------------------------------------------------- -----------
Total 12,763,624
------------------------------------------------------- -----------
Retail -- 3.4%
-------------------------------------------------------
60,000 Consolidated Stores Corp. (b) 2,467,500
-------------------------------------------------------
20,000 Dollar General 727,500
-------------------------------------------------------
33,000 Home Depot, Inc. 1,990,313
------------------------------------------------------- -----------
Total 5,185,313
------------------------------------------------------- -----------
Telecommunications -- 1.3%
-------------------------------------------------------
15,000 Century Telephone Enterprises 791,250
-------------------------------------------------------
32,000 Cincinnati Bell 1,148,000
------------------------------------------------------- -----------
Total 1,939,250
------------------------------------------------------- -----------
Transportation -- 1.5%
-------------------------------------------------------
80,000 Comair Holdings, Inc. 2,255,000
------------------------------------------------------- -----------
Total Common Stocks 94,132,434
------------------------------------------------------- -----------
-- Continued --
33
<PAGE>
Fountain Square Balanced Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Asset Backed Securities -- 1.5%
- --------------------------------------------------------------
Financial -- 1.5%
---------------------------------------------------
1,500,000 Cityscape, Series 1996-3, 7.15%, 8/25/11 1,547,299
---------------------------------------------------
750,000 GE Capital Management, 6.94%, 3/25/27 763,500
--------------------------------------------------- -----------
Total Asset Backed Securities 2,310,799
--------------------------------------------------- -----------
Corporate Bonds -- 5.7%
- --------------------------------------------------------------
Financial -- 4.0%
---------------------------------------------------
46,000 Bankers Trust New York Corp., 9.20%, 7/15/99 48,040
---------------------------------------------------
1,500,000 CIT Group Holdings, 6.25%, 3/28/01 1,517,382
---------------------------------------------------
2,000,000 First Union Corp., 7.00%, 3/15/06 2,076,147
---------------------------------------------------
500,000 Ford Motor Credit, Floating Rate Note, 11/9/98
(5.65%, 2/9/98)(c) 499,518
---------------------------------------------------
1,000,000 General Motors Acceptance Corp., 6.63%, 10/1/02 1,026,027
---------------------------------------------------
1,000,000 Sears Roebuck, 6.54%, 2/20/03 1,024,002
--------------------------------------------------- -----------
Total 6,191,116
--------------------------------------------------- -----------
Manufacturing -- 1.0%
---------------------------------------------------
500,000 IBP, Inc., 6.13%, 2/1/06 499,679
---------------------------------------------------
1,000,000 Texas Instruments, 6.88%, 7/15/00 1,026,120
---------------------------------------------------
Total 1,525,799
--------------------------------------------------- -----------
Utility -- 0.7%
---------------------------------------------------
1,000,000 Georgia Power, 6.88%, 9/1/02 1,016,668
--------------------------------------------------- -----------
Total Corporate Bonds 8,733,583
--------------------------------------------------- -----------
Mortgage Backed Securities -- 0.4%
- -------------------------------------------------------------
U.S. Government Agencies -- 0.4%
---------------------------------------------------
5,177 Federal Home Loan Mortgage Corp., 9.50%, 10/1/02,
Pool #38-0009 5,352
---------------------------------------------------
11,117 Federal Home Loan Mortgage Corp., 8.00%, 8/1/08,
Pool #27-2525 11,528
---------------------------------------------------
653,243 Federal National Mortgage Association, 6.00%,
4/1/11, Dwarf Pool 344185 647,396
--------------------------------------------------- -----------
Total Mortgage Backed Securities 664,276
--------------------------------------------------- -----------
U.S. Government Securities -- 17.2%
- --------------------------------------------------------------
U.S. Government Agencies -- 7.9%
---------------------------------------------------
2,000,000 Federal National Mortgage Association, 6.80%,
8/27/12 2,113,168
---------------------------------------------------
1,939,700 Federal National Mortgage Association, 7.00%,
7/18/27 1,963,248
---------------------------------------------------
1,244,595 Government National Mortgage Association, 7.50%,
8/15/27, Pool #449006 1,282,182
---------------------------------------------------
6,457,081 Government National Mortgage Association, 7.50%,
9/15/27, Pool #451459 6,652,084
--------------------------------------------------- -----------
Total 12,010,682
--------------------------------------------------- -----------
-- Continued --
34
<PAGE>
Fountain Square Balanced Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
U.S. Government Securities--Continued
- --------------------------------------------------------------
U.S. Treasury Bonds -- 5.9%
---------------------------------------------------
8,750,000 6.00%, 2/15/26 8,892,188
--------------------------------------------------- -----------
U.S. Treasury Notes -- 3.4%
---------------------------------------------------
5,000,000 6.50%, 8/31/01 5,178,125
--------------------------------------------------- -----------
Total U.S. Government Securities 26,080,995
--------------------------------------------------- -----------
Repurchase Agreement -- 15.4%
- --------------------------------------------------------------
23,444,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S.
Treasury Bills due 7/2/98 with a value of
$23,916,988. 23,444,000
--------------------------------------------------- -----------
Total Repurchase Agreement 23,444,000
--------------------------------------------------- -----------
Total Investments (Cost $128,997,043) (a)-- 102.3% 155,366,087
---------------------------------------------------
Liabilities in excess of other assets -- (2.3)% (3,459,930)
--------------------------------------------------- -----------
TOTAL NET ASSETS-- 100.0% $151,906,157
=================================================== ============
Percentages indicated are based on net assets of $151,906,157.
(a) The cost of investments for federal tax purposes amounts to $128,997,043.
The net unrealized appreciation of investments on federal tax basis amounts
to $26,369,044, which is composed of $30,417,659 appreciation and
$4,048,615 depreciation at January 31, 1998.
(b) Non-income producing security.
(c) Current rate and next reset date shown.
See notes to financial statements.
35
<PAGE>
Fountain Square Mid Cap Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Common Stocks -- 96.5%
- --------------------------------------------------------------
Banking -- 7.1%
---------------------------------------------------
155,000 First Tennessee National Corp. $9,125,625
---------------------------------------------------
100,000 Firstar Corp. 3,881,250
---------------------------------------------------
52,000 Regions Financial Corp. 2,034,500
--------------------------------------------------- -----------
Total 15,041,375
--------------------------------------------------- -----------
Business Services -- 5.5%
---------------------------------------------------
123,000 Cintas Corp. 5,135,250
---------------------------------------------------
160,000 Omnicom Group 6,490,000
--------------------------------------------------- -----------
Total 11,625,250
--------------------------------------------------- -----------
Chemicals -- 0.5%
---------------------------------------------------
68,750 RPM, Inc. 1,100,000
--------------------------------------------------- -----------
Computer Software & Services -- 7.1%
---------------------------------------------------
150,000 Electronics for Imaging, Inc. 2,512,500
---------------------------------------------------
200,000 Fiserv, Inc. (b) 10,375,000
---------------------------------------------------
110,000 Reynolds & Reynolds Co., Class A 2,186,250
--------------------------------------------------- -----------
Total 15,073,750
--------------------------------------------------- -----------
Computer Systems & Equipment -- 3.3%
---------------------------------------------------
140,000 Diebold, Inc. 6,965,000
--------------------------------------------------- -----------
Consumer Products -- 1.8%
---------------------------------------------------
95,000 Newell Co. 3,900,938
--------------------------------------------------- -----------
Distributors -- 1.7%
---------------------------------------------------
82,000 Fastenal Co. 3,602,875
--------------------------------------------------- -----------
Electrical Equipment -- 3.4%
---------------------------------------------------
190,000 Belden, Inc. 7,243,750
--------------------------------------------------- -----------
Electronics -- 12.6%
---------------------------------------------------
267,000 Adaptec, Inc. (b) 5,957,437
---------------------------------------------------
246,000 Computer Products, Inc. (b) 5,934,750
---------------------------------------------------
120,000 Flextronics, International (b) 4,275,000
---------------------------------------------------
110,000 Molex, Inc. 2,997,500
---------------------------------------------------
82,000 QLogic Corp. (b) 2,654,750
---------------------------------------------------
235,725 Vishay Intertechnology, Inc. (b) 4,950,225
--------------------------------------------------- -----------
Total 26,769,662
--------------------------------------------------- -----------
-- Continued --
36
<PAGE>
Fountain Square Mid Cap Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Common Stocks--Continued
- --------------------------------------------------------------
General Building Contractors -- 1.4%
---------------------------------------------------
180,000 Clayton Homes Inc. 3,015,000
--------------------------------------------------- -----------
Healthcare -- 7.5%
---------------------------------------------------
320,000 Ballard Medical Products 8,040,000
---------------------------------------------------
68,000 First Health Group Corp. 3,238,500
---------------------------------------------------
90,000 STERIS Corp. (b) 4,713,750
--------------------------------------------------- -----------
Total 15,992,250
--------------------------------------------------- -----------
Insurance -- 14.3%
---------------------------------------------------
196,000 American Bankers Insurance Group, Inc. 10,828,999
---------------------------------------------------
43,000 Cincinnati Financial Corp. 5,482,500
---------------------------------------------------
115,000 MGIC Investment Corp. 7,776,875
---------------------------------------------------
216,000 Mutual Risk Management, Limited 6,439,500
--------------------------------------------------- -----------
Total 30,527,874
--------------------------------------------------- -----------
Manufacturing -- 7.6%
---------------------------------------------------
60,000 Applied Industrial Technologies, Inc. 1,593,750
---------------------------------------------------
100,000 Chart Industries, Inc. 2,150,000
---------------------------------------------------
187,000 Federal Signal Corp. 4,195,813
---------------------------------------------------
50,000 OM Group, Inc. 1,915,625
---------------------------------------------------
228,000 Zebra Technologies Corp., Class A (b) 6,327,000
--------------------------------------------------- -----------
Total 16,182,188
--------------------------------------------------- -----------
Medical Distribution -- 4.1%
---------------------------------------------------
112,000 Cardinal Health, Inc. 8,673,000
--------------------------------------------------- -----------
Natural Gas -- 0.8%
---------------------------------------------------
40,000 Questar Corp. 1,665,000
--------------------------------------------------- -----------
Oil & Gas -- 2.2%
---------------------------------------------------
113,000 Global Marine (b) 2,591,938
---------------------------------------------------
100,000 Varco International, Inc. (b) 2,050,000
--------------------------------------------------- -----------
Total 4,641,938
--------------------------------------------------- -----------
Retail -- 8.4%
---------------------------------------------------
172,000 Casey's General Stores 4,837,500
---------------------------------------------------
170,000 Consolidated Stores Corp. (b) 6,991,250
---------------------------------------------------
165,000 Dollar General 6,001,875
--------------------------------------------------- -----------
Total 17,830,625
--------------------------------------------------- -----------
Telecommunications -- 1.7%
---------------------------------------------------
70,000 Century Telephone Enterprises 3,692,500
--------------------------------------------------- -----------
-- Continued --
37
<PAGE>
Fountain Square Mid Cap Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- --------------------------------------------------- --------
Common Stocks--Continued
- --------------------------------------------------------------
Transportation -- 5.5%
---------------------------------------------------
340,000 Comair Holdings, Inc. 9,583,750
---------------------------------------------------
30,000 GATX Corp. 2,176,875
--------------------------------------------------- ------------
Total 11,760,625
--------------------------------------------------- ------------
Total Common Stocks 205,303,600
--------------------------------------------------- ------------
Repurchase Agreements -- 6.1%
- --------------------------------------------------------------
12,907,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S.
Treasury Bills due 7/2/98 with a value of
$13,169,264. 12,907,000
--------------------------------------------------- ------------
Total Repurchase Agreements 12,907,000
--------------------------------------------------- ------------
Total Investments (Cost $164,107,482) (a) -- 102.6% 218,210,600
---------------------------------------------------
Liabilities in excess of other assets -- (2.6)% (5,575,377)
--------------------------------------------------- ------------
TOTAL NET ASSETS -- 100.0% $212,635,223
=================================================== ============
Percentages indicated are based on net assets of $212,635,223.
(a) The cost of investments for federal tax purposes amounts to $164,107,482.
The net unrealized appreciation of investments on federal tax basis amounts
to $54,103,118, which is composed of $61,806,636 appreciation and
$7,703,518 depreciation at January 31, 1998.
(b) Non-income producing security.
See notes to financial statements.
38
<PAGE>
Fountain Square International Equity Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks -- 90.7%
- ------------------------------------------------------------------
Australia -- 1.8%
-------------------------------------------------------
10,300 Amcor, Ltd. $46,730
-------------------------------------------------------
4,800 Australian Gas & Light 36,811
-------------------------------------------------------
14,000 Australian National Industries, Ltd. 13,049
-------------------------------------------------------
18,913 Boral, Ltd. 47,440
-------------------------------------------------------
3,500 Brambles Industries, Ltd. 71,240
-------------------------------------------------------
29,587 Broken Hill Proprietary Co., Ltd. 292,658
-------------------------------------------------------
7,695 Burns Philp & Co., Ltd. 1,055
-------------------------------------------------------
12,060 Coca Cola Amatil, Ltd. 97,942
-------------------------------------------------------
16,938 Coles Myer, Ltd. 85,448
-------------------------------------------------------
15,866 Crown, Ltd. (b) 7,611
-------------------------------------------------------
17,400 CSR, Ltd. 61,174
-------------------------------------------------------
29,600 Fosters Brewing Group 62,886
-------------------------------------------------------
19,300 General Property Trust Units 37,181
-------------------------------------------------------
14,981 Gio Australia Holdings, Ltd. 40,247
-------------------------------------------------------
19,205 Goodman Fielder Wattie, Ltd. 30,285
-------------------------------------------------------
3,200 Howard Smith, Ltd. 26,646
-------------------------------------------------------
4,600 ICI Australia, Ltd. 33,247
-------------------------------------------------------
3,900 Leighton Holdings 14,112
-------------------------------------------------------
3,888 Lend Lease Corp. 91,083
-------------------------------------------------------
22,413 M.I.M. Holdings, Ltd. 13,978
-------------------------------------------------------
34,555 National Australia Bank, Ltd. 477,897
-------------------------------------------------------
4,134 Newcrest Mining, Ltd. (b) 5,241
-------------------------------------------------------
28,365 News Corp., Ltd. (b) 178,649
-------------------------------------------------------
24,753 Normandy Mining, Ltd. 29,009
-------------------------------------------------------
10,641 North, Ltd. 30,264
-------------------------------------------------------
14,100 Pacific Dunlop, Ltd. 29,956
-------------------------------------------------------
14,400 Pioneer International 36,219
-------------------------------------------------------
3,500 Plutonic Resources, Ltd. 11,274
-------------------------------------------------------
3,110 Renison Goldfields Consolidated, Ltd. 5,286
-------------------------------------------------------
5,100 Rio Tinto, Ltd. 67,653
-------------------------------------------------------
9,512 Santos, Ltd. 40,482
-------------------------------------------------------
2,000 Sons of Gwalia, Ltd. 5,962
-------------------------------------------------------
9,845 Southcorp. Holdings, Ltd. 37,109
-------------------------------------------------------
-- Continued --
39
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
5,100 TABCORP Holdings, Ltd. 25,865
-------------------------------------------------------
57,500 Telstra Corp. 130,830
-------------------------------------------------------
15,445 Western Mining, Ltd. 54,534
-------------------------------------------------------
1,219 Westfield Trust 2,431
-------------------------------------------------------
19,454 Westfield Trust 41,064
-------------------------------------------------------
26,800 Westpac Banking Corp., Ltd. 183,669
------------------------------------------------------- ---------
Total 2,504,217
------------------------------------------------------- ---------
Austria -- 0.6%
-------------------------------------------------------
500 Austrian Airlines 11,507
-------------------------------------------------------
1,500 Bank Austria 84,902
-------------------------------------------------------
1,332 Bank of Austria AG (b) 75,186
-------------------------------------------------------
500 Banl Austria 28,262
-------------------------------------------------------
100 Bau Holding 4,432
-------------------------------------------------------
200 BAU Holdings AG 11,040
-------------------------------------------------------
400 Boehler-Uddeholm 24,071
-------------------------------------------------------
100 BWT AG 16,716
-------------------------------------------------------
200 EA-Generali AG 53,181
-------------------------------------------------------
900 Flughafen Wein AG 37,856
-------------------------------------------------------
200 Lenzing AG (b) 11,896
-------------------------------------------------------
400 Mayr-Melnhof Karton AG 22,283
-------------------------------------------------------
100 Mikro Systemeintl AG 5,660
-------------------------------------------------------
200 Oesterreichische Brau-Beteiligun 10,418
-------------------------------------------------------
1,100 Oesterreichische Elektrizitaetsw 120,333
-------------------------------------------------------
800 OMV AG 105,801
-------------------------------------------------------
500 Redex Herallith 18,077
-------------------------------------------------------
300 Steyr-Daimler-Purch AG 9,447
-------------------------------------------------------
500 Va Technologies 71,141
-------------------------------------------------------
300 Weinerberger Baustoffindustrie 55,280
------------------------------------------------------- ---------
Total 777,489
------------------------------------------------------- ---------
France -- 7.8%
-------------------------------------------------------
933 Accor SA 183,795
-------------------------------------------------------
1,769 Air Liquid 279,710
-------------------------------------------------------
3,541 Alcatel Alsthom 470,242
-------------------------------------------------------
7,488 AXA SA 622,571
-------------------------------------------------------
4,853 Banque Nationale De Paris 250,973
-------------------------------------------------------
1,246 BIC 91,262
-------------------------------------------------------
637 Bouygues 81,160
-------------------------------------------------------
-- Continued --
40
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
790 Canal Plus 159,496
-------------------------------------------------------
927 Carrefour SA 501,202
-------------------------------------------------------
2,180 Casino Guichard Perrachon 121,071
-------------------------------------------------------
2,030 De St. Gobain 267,925
-------------------------------------------------------
718 Eridania Beghin-Say SA 127,837
-------------------------------------------------------
264 Essilor International 80,468
-------------------------------------------------------
95 Eurafrance 38,329
-------------------------------------------------------
2,608 Financiere De Paribas SA 233,450
-------------------------------------------------------
15,447 France Telecom SA (b) 659,815
-------------------------------------------------------
2,922 Generale Des Eaux 424,314
-------------------------------------------------------
1,844 Groupe Danone 361,751
-------------------------------------------------------
1,735 Havas SA 124,046
-------------------------------------------------------
383 Imetal 48,109
-------------------------------------------------------
1,435 L'OREAL 580,608
-------------------------------------------------------
2,293 La Farge-Coppee 146,149
-------------------------------------------------------
2,611 La Gardere Groupe Sca 92,549
-------------------------------------------------------
734 Le Grand SA 146,152
-------------------------------------------------------
2,065 Lvmh Moet Vuitton Hennessy Lous 378,121
-------------------------------------------------------
2,925 Lyonnaise Des Eaux SA 348,304
-------------------------------------------------------
2,875 Michelin Class B, Registered 153,330
-------------------------------------------------------
201 Pathe SA 34,277
-------------------------------------------------------
1,621 Pernod Ricard 103,795
-------------------------------------------------------
1,231 Peugeot SA 161,666
-------------------------------------------------------
504 Pinault-Printemps-Redoute SA 296,373
-------------------------------------------------------
448 Promodes 188,069
-------------------------------------------------------
7,822 Rhone Poulenc SA 357,751
-------------------------------------------------------
118 Sagem SA 61,679
-------------------------------------------------------
2,560 Sanofi SA 282,260
-------------------------------------------------------
3,133 Schneider SA 182,493
-------------------------------------------------------
582 Simco-Union SA, Registered 45,632
-------------------------------------------------------
5,926 Societe Elf Aquitane SA 669,844
-------------------------------------------------------
2,244 Societe Generale 291,770
-------------------------------------------------------
190 Sodexho SA 102,417
-------------------------------------------------------
2,880 Thomson CSF 98,791
-------------------------------------------------------
5,664 Total SA, Class B 590,268
-------------------------------------------------------
5,964 Unisor Sacilor SA 82,027
-------------------------------------------------------
1,563 Valeo SA 109,348
------------------------------------------------------- ----------
Total 10,631,199
------------------------------------------------------- ----------
-- Continued --
41
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ------------------------------------------------------------------ ---------
Common Stocks--Continued
- ------------------------------------------------------------------
Germany -- 8.4%
-------------------------------------------------------
1,000 Adidas 147,154
-------------------------------------------------------
700 Agiva AG (b) 11,967
-------------------------------------------------------
4,650 Allianz AG 1,379,984
-------------------------------------------------------
200 Amb Aachener Muenchner 21,772
-------------------------------------------------------
12,150 BASF AG 410,758
-------------------------------------------------------
14,850 Bayer AG 558,496
-------------------------------------------------------
4,950 Bayerisch Hypotheken & Wechsek Bank AG 239,375
-------------------------------------------------------
5,950 Bayerische Vereins Ag 379,196
-------------------------------------------------------
1,300 Bilfinger & Berger 35,487
-------------------------------------------------------
150 Brau & Brunnen (b) 13,539
-------------------------------------------------------
600 CKAG Konzern AG 55,437
-------------------------------------------------------
1,650 Continental Gummiwerke AG 37,910
-------------------------------------------------------
10,950 Dailmer Benz AG 763,141
-------------------------------------------------------
2,000 Degussa AG 105,689
-------------------------------------------------------
10,350 Deutsche Bank AG 674,048
-------------------------------------------------------
47,896 Deutsche Telekom 835,816
-------------------------------------------------------
9,300 Dresdner Bank AG 413,613
-------------------------------------------------------
1,140 Heidelberger Zement 82,943
-------------------------------------------------------
2,150 Hochtief AG 78,213
-------------------------------------------------------
200 Karstadt AG 67,286
-------------------------------------------------------
1,050 Kloeckner Humboldt Deutz AG (b) 7,295
-------------------------------------------------------
200 Linde AG 119,583
-------------------------------------------------------
7,400 Lufthansa AG 133,183
-------------------------------------------------------
300 Man AG 80,579
-------------------------------------------------------
750 Mannesmann AG 427,514
-------------------------------------------------------
3,850 Merck KGaA 133,949
-------------------------------------------------------
4,796 Metro AG 189,687
-------------------------------------------------------
1,700 Muenchener Rueckver 692,829
-------------------------------------------------------
400 Preussag AG 128,664
-------------------------------------------------------
7,250 RWE AG 404,934
-------------------------------------------------------
1,342 SAP AG 457,951
-------------------------------------------------------
1,650 Schering AG 170,505
-------------------------------------------------------
11,350 Siemens AG 693,538
-------------------------------------------------------
100 STRABAG AG (b) 7,166
-------------------------------------------------------
700 Thyssen AG 146,662
-------------------------------------------------------
10,600 VEBA AG 737,588
-------------------------------------------------------
-- Continued --
42
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ------------------------------------------------------------------ ---------
Common Stocks--Continued
- ------------------------------------------------------------------
550 Viag AG 319,828
-------------------------------------------------------
600 Volkswagen AG 345,621
-------------------------------------------------------
Total 11,508,900
------------------------------------------------------- ----------
Great Britain -- 23.2%
-------------------------------------------------------
36,400 Abbey National PLC 718,335
-------------------------------------------------------
18,250 Arjo Wiggins Appleton PLC 45,057
-------------------------------------------------------
12,975 Associated British Foods PLC 127,815
-------------------------------------------------------
80,615 B.A.T. Industries PLC 734,817
-------------------------------------------------------
44,195 Barclays PLC 1,333,177
-------------------------------------------------------
28,600 Bass PLC 440,489
-------------------------------------------------------
18,186 BICC Group PLC, Registered 41,479
-------------------------------------------------------
33,842 Blue Circle Industries PLC 177,062
-------------------------------------------------------
18,219 BOC Group PLC 269,731
-------------------------------------------------------
28,600 Boots Co. PLC 402,379
-------------------------------------------------------
18,250 BPB Industries PLC 89,815
-------------------------------------------------------
12,990 British Aerospace PLC 337,058
-------------------------------------------------------
31,199 British Airways PLC 261,428
-------------------------------------------------------
101,007 British Gas 541,683
-------------------------------------------------------
149,173 British Petroleum Co. PLC 2,009,722
-------------------------------------------------------
41,600 British Sky Broadcasting Group PLC 245,878
-------------------------------------------------------
52,025 British Steel PLC 112,068
-------------------------------------------------------
150,900 British Telecommunications PLC 1,440,239
-------------------------------------------------------
109,271 BTR PLC 290,766
-------------------------------------------------------
7,785 Burmah Castrol PLC 128,303
-------------------------------------------------------
65,072 Cable & Wireless PLC 619,206
-------------------------------------------------------
28,598 Cadbury Schweppes PLC 333,383
-------------------------------------------------------
20,845 Caradon PLC 55,042
-------------------------------------------------------
114,475 Centrica PLC (b) 200,736
-------------------------------------------------------
23,444 Coats Viyella PLC 34,498
-------------------------------------------------------
18,192 Commercial Union PLC 293,275
-------------------------------------------------------
12,975 Courtaulds PLC 53,672
-------------------------------------------------------
2,611 De La Rue, LTD. 15,731
-------------------------------------------------------
12,987 EMI Group PLC 95,446
-------------------------------------------------------
1 Energy Group PLC 12
-------------------------------------------------------
75,450 General Electric Co. PLC 470,313
-------------------------------------------------------
15,630 GKN PLC 318,927
-------------------------------------------------------
83,250 Glaxo Holdings PLC 2,225,464
-------------------------------------------------------
-- Continued --
43
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
18,233 Granada Group PLC 283,652
-------------------------------------------------------
31,225 Great Universal Stores PLC 377,281
-------------------------------------------------------
20,827 Guardian Royal Exchange PLC 134,251
-------------------------------------------------------
91,407 Guinness PLC (b) 816,748
-------------------------------------------------------
15,629 Hanson PLC 68,355
-------------------------------------------------------
33,775 Harrison & Crossfield PLC 72,065
-------------------------------------------------------
57,244 HSBC Holdings PLC 1,412,334
-------------------------------------------------------
23,425 Imperial Chemical Industries PLC 358,104
-------------------------------------------------------
31,209 Ladbroke Group PLC 147,085
-------------------------------------------------------
20,800 Land Securities PLC 379,530
-------------------------------------------------------
20,800 LASMO PLC 89,271
-------------------------------------------------------
31,225 Legal & General Group PLC 330,568
-------------------------------------------------------
143,075 Lloyds TSB Group PLC 1,991,897
-------------------------------------------------------
20,833 Lonrho PLC 32,870
-------------------------------------------------------
91,050 Marks & Spencer PLC 858,218
-------------------------------------------------------
15,625 MEPC PLC, Registered 154,431
-------------------------------------------------------
36,400 National Power PLC 391,305
-------------------------------------------------------
21,259 Peninsular & Oriental Steam Navigation Co. 241,919
-------------------------------------------------------
39,042 Pilkington PLC 73,409
-------------------------------------------------------
52,063 Prudential Corp. PLC 696,733
-------------------------------------------------------
23,425 Rank Group PLC 112,506
-------------------------------------------------------
36,400 Reed International PLC 374,046
-------------------------------------------------------
44,225 Reuters Holdings PLC 397,332
-------------------------------------------------------
15,625 Rexam PLC 65,272
-------------------------------------------------------
31,215 Rio Tinto PLC, Registered 397,320
-------------------------------------------------------
7,800 RMC Group PLC 101,259
-------------------------------------------------------
36,407 Royal & Sun Alliance Insurance Group PLC 408,345
-------------------------------------------------------
13,047 Royal Bank of Scotland Group PLC 183,347
-------------------------------------------------------
23,412 Safeway PLC 145,937
-------------------------------------------------------
41,612 Sainsbury (J) PLC 337,797
-------------------------------------------------------
5,175 Schroder PLC 164,231
-------------------------------------------------------
26,010 Scottish Power PLC 223,264
-------------------------------------------------------
52,025 Sears PLC 42,956
-------------------------------------------------------
15,614 Sedgwick Group PLC 37,017
-------------------------------------------------------
12,975 Slough Estates PLC 83,478
-------------------------------------------------------
137,910 SmithCline Beecham 1,758,769
-------------------------------------------------------
12,990 Southern Electric PLC 112,884
-------------------------------------------------------
-- Continued --
44
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------ --------
Common Stocks--Continued
- -----------------------------------------------------------------
13,003 T.I. Group PLC 94,500
------------------------------------------------------
36,389 Tarmac PLC 61,430
------------------------------------------------------
20,780 Taylor Woodrow PLC 60,306
------------------------------------------------------
49,451 Tesco PLC 434,380
------------------------------------------------------
18,193 Thames Water PLC 260,720
------------------------------------------------------
12,989 Thorn PLC 30,581
------------------------------------------------------
75,550 Unilever 595,079
------------------------------------------------------
18,245 United Utilities Group PLC 242,075
------------------------------------------------------
85,839 Vodafone Group PLC 660,683
------------------------------------------------------
23,425 Zeneca Group PLC 913,453
------------------------------------------------------ -----------
Total 31,671,999
------------------------------------------------------ -----------
Indonesia -- 0.0%
------------------------------------------------------
19,000 Mulia Industrindo 950
------------------------------------------------------ -----------
Italy -- 7.4%
------------------------------------------------------
5,700 Assicuratrice Industrial 68,751
------------------------------------------------------
38,440 Assicurazioni Generali SpA 1,048,800
------------------------------------------------------
60,100 Banca Commerciale Italiana 246,299
------------------------------------------------------
26,200 Banco Ambrosiano Veneto 121,320
------------------------------------------------------
7,676 Benetton Group SpA 135,791
------------------------------------------------------
6,400 Burgo (Cartiere) SpA 41,880
------------------------------------------------------
104,500 Credito Italiano (b) 390,589
------------------------------------------------------
28,000 Edison SpA 182,293
------------------------------------------------------
331,000 Ente Nazional Indrocarburi SpA 1,931,024
------------------------------------------------------
7,000 Falck, Accia & Ferriere Lombarde 40,449
------------------------------------------------------
141,830 Fiat SpA 469,162
------------------------------------------------------
31,720 Fiat SpA, di risp 62,094
------------------------------------------------------
11,000 Impregilo SpA 9,492
------------------------------------------------------
36,600 Istituto Bancario san Paolo di Torina 399,439
------------------------------------------------------
26,450 Istituto Mobiliare Italiano 365,232
------------------------------------------------------
175,600 Istituto Nazionale delle Assicurazioni 387,571
------------------------------------------------------
10,150 Italcementi SpA 77,676
------------------------------------------------------
6,850 Italcementi SpA, di risp 24,122
------------------------------------------------------
28,300 Italgas SpA 111,427
------------------------------------------------------
19,900 Magneti Marelli SpA 37,852
------------------------------------------------------
50,000 Mediaset SpA 266,741
------------------------------------------------------
21,000 Mediobanca Banca SpA 193,318
------------------------------------------------------
119,154 Montedison SpA 113,917
------------------------------------------------------
-- Continued --
45
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------ --------
Common Stocks--Continued
- -----------------------------------------------------------------
41,500 Montedison SpA, di risp 29,941
------------------------------------------------------
107,680 Olivetti Ing & Co. SpA (b) 89,213
------------------------------------------------------
67,480 Parmalat Finanziaria SpA 106,464
------------------------------------------------------
70,000 Pirelli SpA 183,807
------------------------------------------------------
880 R.A.S. 6,637
------------------------------------------------------
12,625 RAS Italian 135,474
------------------------------------------------------
1,600 Reno (Saffa) (b) 4,951
------------------------------------------------------
9,600 Rinascente 72,908
------------------------------------------------------
12,800 Sirti SpA 76,768
------------------------------------------------------
29,000 Snia BPD SpA 34,094
------------------------------------------------------
272,500 Telecom Italia Mobile SpA 1,300,353
------------------------------------------------------
42,151 Telecom Italia SpA 208,739
------------------------------------------------------
145,833 Telecom Italia SpA (b) 1,010,904
------------------------------------------------------
65,000 Tim, di risp (b) 192,666
------------------------------------------------------ -----------
Total 10,178,158
------------------------------------------------------ -----------
Japan -- 20.5%
------------------------------------------------------
25,400 Ajinomoto Co., Inc. 262,413
------------------------------------------------------
26,600 Aoki Corp. (b) 20,558
------------------------------------------------------
2,200 Aoyama Trading Co., Ltd. 52,571
------------------------------------------------------
11,900 Asahi Bank, Ltd. 57,435
------------------------------------------------------
15,600 Asahi Breweries, Ltd. 215,300
------------------------------------------------------
49,000 Asahi Chemical Industry Co., Ltd. 195,150
------------------------------------------------------
45,800 Asahi Glass Co., Ltd. 263,314
------------------------------------------------------
80,000 Bank of Tokyo-Mitsubishi, Ltd. 1,160,883
------------------------------------------------------
7,400 Bank of Yokohama, Ltd. 23,927
------------------------------------------------------
15,600 Bridgestone Corp. 375,236
------------------------------------------------------
19,400 Canon, Inc. 471,230
------------------------------------------------------
9,800 Casio Computer Co., Ltd. 83,470
------------------------------------------------------
6,400 Chiba Bank 28,467
------------------------------------------------------
15,600 Chugai Pharmaceutical Co., Ltd. 92,640
------------------------------------------------------
19,600 Dai Nippon Printing Co., Ltd. 363,249
------------------------------------------------------
17,600 Daiei, Inc. 96,744
------------------------------------------------------
15,600 Daikin Industries, Ltd. 76,155
------------------------------------------------------
15,600 Daiwa House Industry Co. Ltd. 114,416
------------------------------------------------------
9,000 Daiwa Securities, Ltd. 41,380
------------------------------------------------------
94 East Japan Railway Co. 440,347
------------------------------------------------------
10,800 Ebara Corp. 119,243
------------------------------------------------------
-- Continued --
46
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
6,500 Fanuc Co., Ltd. 237,342
-------------------------------------------------------
12,000 Fuji Bank 75,237
-------------------------------------------------------
10,000 Fuji Photo Film Co., Ltd. 419,558
-------------------------------------------------------
38,000 Fujitsu, Ltd. 434,542
-------------------------------------------------------
11,800 Furukawa Electric Co. 55,743
-------------------------------------------------------
21,400 Hankyu Corp. 102,949
-------------------------------------------------------
14,600 Hazama Corp. 13,587
-------------------------------------------------------
82,000 Hitachi, Ltd. 646,687
-------------------------------------------------------
21,000 Honda Motor Co., Ltd. 763,485
-------------------------------------------------------
11,800 Industrial Bank of Japan 100,505
-------------------------------------------------------
9,800 ITO-Yokado Co., Ltd. 514,732
-------------------------------------------------------
51,000 Japan Airlines (b) 168,927
-------------------------------------------------------
38,000 Japan Energy Corp. (Nikko Kyodo Co., Ltd.) 47,650
-------------------------------------------------------
4,600 Joyo Bank 21,621
-------------------------------------------------------
7,800 JUSCO, Ltd. 141,483
-------------------------------------------------------
31,400 Kajima Corp. 107,721
-------------------------------------------------------
21,200 Kansai Electric Power, Inc. 366,151
-------------------------------------------------------
21,000 Kao Corp. 296,451
-------------------------------------------------------
25,400 Kawasaki Steel Corp. 38,260
-------------------------------------------------------
36,000 Kinki Nippon Railway 206,404
-------------------------------------------------------
32,400 Kirin Brewery Co., Ltd. 268,296
-------------------------------------------------------
30,400 Komatsu, Ltd. 157,274
-------------------------------------------------------
45,000 Kubota Corp. 131,664
-------------------------------------------------------
50,400 Kumagai Gumi Co., Ltd. 47,697
-------------------------------------------------------
4,700 Kyocera Corp. 254,645
-------------------------------------------------------
14,600 Kyowa Hakko Kogyo Co., Ltd. 67,128
-------------------------------------------------------
42,800 Marubenii Corp. 107,337
-------------------------------------------------------
4,000 Marui Co., Ltd. 63,091
-------------------------------------------------------
45,000 Matsushita Electric Industrial Co., Ltd. 677,839
-------------------------------------------------------
49,000 Mitsubishi Chemical Corp. 86,561
-------------------------------------------------------
43,000 Mitsubishi Corp. 373,028
-------------------------------------------------------
57,800 Mitsubishi Electric Corp. 182,334
-------------------------------------------------------
7,000 Mitsubishi Estate Co., Ltd. 77,287
-------------------------------------------------------
89,000 Mitsubishi Heavy Industries, Ltd. 381,128
-------------------------------------------------------
30,200 Mitsubishi Material Corp. 61,924
-------------------------------------------------------
23,000 Mitsubishi Trust & Banking Co. 266,640
-------------------------------------------------------
43,800 Mitsui & Co. 290,848
-------------------------------------------------------
-- Continued --
47
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
31,400 Mitsui Engineering & Shipbuilding Co., Ltd. (b) 27,983
-------------------------------------------------------
6,400 Mitsui Fudosan 63,596
-------------------------------------------------------
5,200 Mitsui Trust & Bankings Co. 14,804
-------------------------------------------------------
16,600 Mitsukoshi, Ltd. 59,043
-------------------------------------------------------
31,000 Model 69,677
-------------------------------------------------------
1,000 Murata Manufacturing Co., Ltd. 29,022
-------------------------------------------------------
9,800 Mycal Corp. 85,789
-------------------------------------------------------
28,200 NEC Corp. 333,596
-------------------------------------------------------
32,400 New Oji Paper Co. 148,202
-------------------------------------------------------
15,600 NGK Insulators, Ltd. 142,713
-------------------------------------------------------
17,600 Nippon Denso, Ltd. 360,883
-------------------------------------------------------
12,600 Nippon Express Co., Ltd. 76,912
-------------------------------------------------------
14,600 Nippon Fire & Marine Insurance 62,177
-------------------------------------------------------
93,800 Nippon Kokan 102,825
-------------------------------------------------------
14,600 Nippon Light Metal Co. 20,841
-------------------------------------------------------
14,600 Nippon Meat Packers, Inc. 179,621
-------------------------------------------------------
46,800 Nippon Oil Co., Ltd. 164,612
-------------------------------------------------------
180,800 Nippon Steel Corp. 283,748
-------------------------------------------------------
243 Nippon Telegraph & Telephone Corp. 2,203,864
-------------------------------------------------------
45,000 Nippon Yusen Kabushiki Kaisha 133,084
-------------------------------------------------------
57,600 Nissan Motors Co., Ltd. 256,656
-------------------------------------------------------
9,000 Nomura Securities Co., Ltd. 120,662
-------------------------------------------------------
17,400 Odakyu Electric Railway 79,727
-------------------------------------------------------
69,200 Osaka Gas Co., Ltd. 153,899
-------------------------------------------------------
14,600 Penta-Ocean Construction Co., Ltd. 29,246
-------------------------------------------------------
4,000 Pioneer Electronic Corp. 72,240
-------------------------------------------------------
2,000 Rohm Co. 219,243
-------------------------------------------------------
59,000 Sakura Bank 221,017
-------------------------------------------------------
12,800 Sankyo Co., Ltd. 334,132
-------------------------------------------------------
41,000 Sanwa Bank, Ltd. 449,448
-------------------------------------------------------
45,000 Sanyo Electric Co. 133,084
-------------------------------------------------------
3,800 Secom Co., Ltd. 239,748
-------------------------------------------------------
3,200 Sega Enterprise, Ltd. 68,644
-------------------------------------------------------
15,600 Sekisui House, Ltd. 129,180
-------------------------------------------------------
30,200 Sharp Corp. 242,934
-------------------------------------------------------
4,000 Shimano, Inc. 86,751
-------------------------------------------------------
23,600 Shimizu Construction 85,615
-------------------------------------------------------
5,800 Shin-Etsu Chemical Co. 128,990
-------------------------------------------------------
-- Continued --
48
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
6,800 Shiseido Co., Ltd. 94,921
-------------------------------------------------------
5,400 Shizuoka Bank 60,047
-------------------------------------------------------
30,400 Shon Denko KK 38,120
-------------------------------------------------------
8,000 Sony Corp. 738,170
-------------------------------------------------------
11,000 Sumitomo Bank, Ltd. 131,861
-------------------------------------------------------
60,600 Sumitomo Chemical Co., Ltd. 191,167
-------------------------------------------------------
31,200 Sumitomo Corp. 212,101
-------------------------------------------------------
22,400 Sumitomo Electric Industries 330,347
-------------------------------------------------------
1,000 Sumitomo Forestry Co., Ltd. 6,191
-------------------------------------------------------
15,600 Sumitomo Metal & Mining 60,776
-------------------------------------------------------
58,600 Sumitomo Metal Industries 93,353
-------------------------------------------------------
15,600 Sumitomo Osaka Cement Co. 22,637
-------------------------------------------------------
32,400 Taisei Construction 89,432
-------------------------------------------------------
9,800 Taisho Pharmaceutical Co. 245,773
-------------------------------------------------------
18,000 Taiyo Yuden Co., Ltd. 183,123
-------------------------------------------------------
18,400 Takeda Chemical Industries 519,495
-------------------------------------------------------
32,400 Teijin, Ltd. 84,066
-------------------------------------------------------
20,600 Tobu Railway Co., Ltd. 73,432
-------------------------------------------------------
10,900 Tohoku Electric Power Co., Inc. 165,907
-------------------------------------------------------
11,800 Tokai Bank 70,819
-------------------------------------------------------
49,000 Tokio Marine Fire Insurance Co. 544,874
-------------------------------------------------------
27,500 Tokyo Electric Power 513,998
-------------------------------------------------------
3,000 Tokyo Electron, Ltd. 115,457
-------------------------------------------------------
65,600 Tokyo Gas, Ltd. 147,962
-------------------------------------------------------
25,400 Tokyu Corp. 101,560
-------------------------------------------------------
20,600 Toppan Printing Co., Ltd. 256,688
-------------------------------------------------------
49,100 Toray Industries, Inc. 241,240
-------------------------------------------------------
15,600 Toto, Ltd. 122,659
-------------------------------------------------------
32,400 Toyobo, Ltd. 47,271
-------------------------------------------------------
66,200 Toyota Motor Corp. 1,848,169
-------------------------------------------------------
30,400 Ube Industries, Inc. 47,950
-------------------------------------------------------
6,000 Yasuda Trust & Banking 10,410
-------------------------------------------------------
17,000 Yokogawa Electric 107,255
------------------------------------------------------- ----------
Total 27,939,323
------------------------------------------------------- ----------
Malaysia -- 0.5%
-------------------------------------------------------
12,000 Airlines System 10,217
-------------------------------------------------------
7,000 AMMB Holdings 4,453
-------------------------------------------------------
-- Continued --
49
<PAGE>
Fountain Square International Equity Fund
- -------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
14,000 Amsteel Corp. 2,813
-------------------------------------------------------
19,000 Banking 41,807
-------------------------------------------------------
16,000 Berjaya Group 2,966
-------------------------------------------------------
6,000 Berjaya Land 3,458
-------------------------------------------------------
7,000 Cement Berhad 3,014
-------------------------------------------------------
3,000 Cement Works 933
-------------------------------------------------------
14,000 Commerce Assets Holdings 5,893
-------------------------------------------------------
30,000 DCB Holdings 12,557
-------------------------------------------------------
4,000 Ederan Otomobil Nasional 4,152
-------------------------------------------------------
8,000 Ekran Berhad (b) 1,607
-------------------------------------------------------
17,000 Golden Hope Plantations 18,134
-------------------------------------------------------
5,000 Guinness Anchor 5,955
-------------------------------------------------------
10,000 Highlands & Lowlands 9,758
-------------------------------------------------------
2,000 Hong Leong Industries 1,210
-------------------------------------------------------
4,000 Hong Leong Properties 794
-------------------------------------------------------
5,000 Hume Ind. 4,425
-------------------------------------------------------
10,000 Idris Hydraulic (b) 1,913
-------------------------------------------------------
5,000 IGB Corp. 1,256
-------------------------------------------------------
16,000 International Shipping 21,812
-------------------------------------------------------
14,000 IOI Corp. 6,697
-------------------------------------------------------
4,000 Jaya Tiasa Holdings 5,740
-------------------------------------------------------
3,000 Kian Joo Can Factory 2,669
-------------------------------------------------------
10,000 Kuala Lumpur Kepong 21,286
-------------------------------------------------------
24,000 Magnum Corp. 13,260
-------------------------------------------------------
13,000 MBF Capital Berhad 3,140
-------------------------------------------------------
13,000 Metroplex 2,985
-------------------------------------------------------
13,000 Mining Corp. 5,752
-------------------------------------------------------
5,000 Mosaics 2,452
-------------------------------------------------------
10,000 Mulph International 1,507
-------------------------------------------------------
12,000 Multi Purpose Holdings 3,128
-------------------------------------------------------
5,000 Mycom Berhad 981
-------------------------------------------------------
4,000 Nestle 18,081
-------------------------------------------------------
4,000 New Straits Times Press 3,922
-------------------------------------------------------
6,000 Oriental Holdings Berhad 6,601
-------------------------------------------------------
1,000 Oxygen 2,308
-------------------------------------------------------
4,000 Pacific Industries 9,950
-------------------------------------------------------
5,000 Perlis Plantations 6,398
-------------------------------------------------------
9,000 Perusahaan Otomobil Nasional 6,587
-------------------------------------------------------
-- Continued --
50
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
2,000 Petaling Garden 1,196
-------------------------------------------------------
25,000 Public Bank 7,534
-------------------------------------------------------
6,000 Rashid Hussain 4,477
-------------------------------------------------------
20,000 Resort World 36,115
-------------------------------------------------------
18,000 Resources Corp. 4,090
-------------------------------------------------------
4,000 RJ Reynolds 6,505
-------------------------------------------------------
5,000 Rothmans Pall Mall 39,762
-------------------------------------------------------
8,000 Selangor Properties 2,373
-------------------------------------------------------
1,000 Shell Refining 1,339
-------------------------------------------------------
36,000 Sime Darby 37,024
-------------------------------------------------------
8,000 Sungei Way Holdings 1,818
-------------------------------------------------------
16,000 TA Enterprises 2,679
-------------------------------------------------------
12,000 Tan Chong 5,023
-------------------------------------------------------
14,000 Technology Resources Ind. 6,697
-------------------------------------------------------
47,000 Telekom 115,782
-------------------------------------------------------
50,000 Tenega Nasional 84,905
-------------------------------------------------------
13,000 Time Engineering 1,897
-------------------------------------------------------
4,000 UMW Holdings 2,239
-------------------------------------------------------
14,000 United Engineers, Ltd. 7,166
-------------------------------------------------------
21,000 United Ind. 3,114
-------------------------------------------------------
20,000 YTL Corp. 25,113
------------------------------------------------------- ---------
Total 679,419
------------------------------------------------------- ---------
Netherlands -- 3.0%
-------------------------------------------------------
16,670 ABN Amro Holdings NV 335,848
-------------------------------------------------------
950 Akzo Nobel NV 172,117
-------------------------------------------------------
8,100 Elsevier NV 137,236
-------------------------------------------------------
500 Heineken NV 86,122
-------------------------------------------------------
9,205 ING Groep NV 421,847
-------------------------------------------------------
1,093 KLM Royal Dutch Airlines NV 37,939
-------------------------------------------------------
4,820 Koninklijke Ahold NV 132,909
-------------------------------------------------------
413 Koninklijke Hoogovens NV 17,784
-------------------------------------------------------
1,300 Koninklijke KNP BT NV 32,691
-------------------------------------------------------
12,097 Koninklijke Royal PTT Nederland NV 523,256
-------------------------------------------------------
300 Nedlloyd Groep NV 6,219
-------------------------------------------------------
4,100 Philips Electronics NV 277,065
-------------------------------------------------------
26,400 Royal Dutch Petroleum Co. 1,381,596
-------------------------------------------------------
7,800 Unilever NV 447,580
-------------------------------------------------------
-- Continued --
51
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
369 Verenigde Machinefabrieken Stork NV 13,041
-------------------------------------------------------
867 Wolters Kluwer NV CVA 117,431
------------------------------------------------------- ----------
Total 4,140,681
------------------------------------------------------- ----------
Norway -- 0.5%
-------------------------------------------------------
1,500 Ager, Series A 25,237
-------------------------------------------------------
1,300 Bergesen, Series A 28,219
-------------------------------------------------------
500 Bergesen, Series B 10,689
-------------------------------------------------------
12,700 Christiania Bank 46,422
-------------------------------------------------------
700 Dyno Industrier 11,731
-------------------------------------------------------
1,200 Elkem 15,677
-------------------------------------------------------
2,300 Hafslund AS 12,899
-------------------------------------------------------
500 Helicopter Services Group 5,674
-------------------------------------------------------
1,000 Kvaerner Industrier 38,664
-------------------------------------------------------
700 Lief Hoegh & Co. 11,546
-------------------------------------------------------
3,555 NCL Holding, Series A (b) 13,323
-------------------------------------------------------
5,400 Norsk Hydro 243,703
-------------------------------------------------------
700 Norske Skogindystrier 19,583
-------------------------------------------------------
1,100 Orkla ASA, Series A 89,706
-------------------------------------------------------
700 Pertroleum Geo Services (b) 38,611
-------------------------------------------------------
6,600 Storebrand (b) 47,901
-------------------------------------------------------
400 Unitor AS 5,278
------------------------------------------------------- ----------
Total 664,863
------------------------------------------------------- ----------
Portugal -- 1.5%
-------------------------------------------------------
9,000 Banco Commercial 205,223
-------------------------------------------------------
4,700 Banco Espirito Santo 168,360
-------------------------------------------------------
4,500 Banco Portugues Investmento 138,339
-------------------------------------------------------
3,400 Banco Totta 75,438
-------------------------------------------------------
500 Cie De Seguros Tranquilidad 11,893
-------------------------------------------------------
4,800 Cimpor Cimentos 132,421
-------------------------------------------------------
200 Corporacao Industrial Do Norte 14,168
-------------------------------------------------------
1,100 Corticeira Amorim 13,244
-------------------------------------------------------
21,000 Electricidade De Portugal 434,618
-------------------------------------------------------
400 Engil Sociedade Gestora 4,801
-------------------------------------------------------
900 Inapa 10,153
-------------------------------------------------------
6,050 Jeronimo Martins 197,634
-------------------------------------------------------
5,100 Portucel Industrial 31,357
-------------------------------------------------------
11,000 Portugal Telecom 562,410
-------------------------------------------------------
-- Continued --
52
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
700 Sociedade De Construcoes Soares Da Costa SA (b) 4,341
-------------------------------------------------------
2,400 Sonae 99,380
-------------------------------------------------------
700 Unicer 11,059
------------------------------------------------------- ----------
Total 2,114,839
------------------------------------------------------- ----------
Singapore -- 0.7%
-------------------------------------------------------
26,666 Asia Food & Property (b) 3,467
-------------------------------------------------------
17,000 City Development, Ltd. 52,970
-------------------------------------------------------
2,000 Creative Technology, Ltd. (b) 35,876
-------------------------------------------------------
5,000 Cycle & Carriage, Ltd. 12,347
-------------------------------------------------------
21,000 DBS Land Ltd. 21,526
-------------------------------------------------------
11,000 Development Bank of Singapore, Ltd. (b) 70,472
-------------------------------------------------------
7,000 First Capital Corp., Ltd. 4,158
-------------------------------------------------------
7,000 Fraser & Neave, Ltd. 24,461
-------------------------------------------------------
13,000 Hai Sun Huo Group 3,710
-------------------------------------------------------
10,000 Hotel & Properties 4,834
-------------------------------------------------------
4,000 Inchcape Berhad 4,100
-------------------------------------------------------
4,000 Inchcape Marketing Services (b) 920
-------------------------------------------------------
16,000 Keppel Corp., Ltd. 37,088
-------------------------------------------------------
2,000 Metro Holdings, Ltd. 1,747
-------------------------------------------------------
7,000 Natsteel, Ltd. 5,789
-------------------------------------------------------
19,000 Neptune Orient Lines, Ltd. 7,525
-------------------------------------------------------
18,960 OCBC - Foreign (b) 78,954
-------------------------------------------------------
3,000 Overseas Union Enterprises, Ltd. 4,997
-------------------------------------------------------
7,000 Parkway Holdings, Ltd. 10,559
-------------------------------------------------------
1,200 Robinson & Co. 3,494
-------------------------------------------------------
3,100 Shangri-La Hotel, Ltd. 4,496
-------------------------------------------------------
19,000 Singapore International Airlines, Ltd. 123,937
-------------------------------------------------------
4,400 Singapore Press Holdings, Ltd. 57,146
-------------------------------------------------------
16,000 Singapore Technologies Industrial Corp. 11,089
-------------------------------------------------------
134,000 Singapore Telecommunications, Ltd. 265,347
-------------------------------------------------------
8,000 Straits Trading Co., Ltd. 7,036
-------------------------------------------------------
32,000 United Industries Corp., Ltd. 9,691
-------------------------------------------------------
19,000 United Overseas Bank, Ltd. (b) 70,821
-------------------------------------------------------
12,000 United Overseas Land, Ltd. 7,688
------------------------------------------------------- ----------
Total 946,245
------------------------------------------------------- ----------
Spain -- 4.3%
-------------------------------------------------------
257 Acerinox SA, Registered 37,623
-------------------------------------------------------
-- Continued --
53
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
8,284 Acesa Autopista 114,644
-------------------------------------------------------
400 Alba 43,588
-------------------------------------------------------
23,800 Banco Bilbao Vizcaya SA, Registered 832,259
-------------------------------------------------------
18,600 Banco Santander SA 656,421
-------------------------------------------------------
12,800 Bco Cent Hispanoamer 313,816
-------------------------------------------------------
4,400 Corporacion Bancaria de Espana SA 303,752
-------------------------------------------------------
1,580 Corporacion Mapfre 41,999
-------------------------------------------------------
1,400 Dragados & Construcciones SA 33,646
-------------------------------------------------------
1,200 Ebro Agricolas, Compania De Alimentacion SA 23,691
-------------------------------------------------------
550 Empresa Nacional de Celulosas SA 7,274
-------------------------------------------------------
37,300 Endesa-Empresa Nac Elec. 719,552
-------------------------------------------------------
4,100 Ercros SA (b) 4,867
-------------------------------------------------------
1,600 Fomento De Construction 62,867
-------------------------------------------------------
5,400 Gas Natural SDG SA 276,977
-------------------------------------------------------
32,400 Iberdrola SA 490,196
-------------------------------------------------------
535 Inmobiliaria Metropolitana Vasco Central SA 23,989
-------------------------------------------------------
10,600 Repsol SA 454,789
-------------------------------------------------------
1,631 Sociedade General De Aguas D'Barcelona, SA 69,136
-------------------------------------------------------
900 Tabacalera Spanish SA, Registered 76,938
-------------------------------------------------------
33,300 Telefonica De Espana 1,089,268
-------------------------------------------------------
7,100 Union Electrica Fenosa SA 74,896
-------------------------------------------------------
2,300 Uralita SA 26,265
-------------------------------------------------------
1,339 Vallehermoso SA 43,972
-------------------------------------------------------
500 Viscofan Envolturas Celulosicas 14,097
-------------------------------------------------------
371 Zardoya Otis SA 43,803
------------------------------------------------------- ----------
Total 5,880,325
------------------------------------------------------- ----------
Sweden -- 2.8%
-------------------------------------------------------
18,600 ABB AB, Series A 220,227
-------------------------------------------------------
400 AGA AB, Series A 5,377
-------------------------------------------------------
4,100 AGA AB, Series B 51,579
-------------------------------------------------------
35,866 Astra AB, Series A 656,893
-------------------------------------------------------
3,900 Atlas Copco AB, Series A 109,188
-------------------------------------------------------
2,000 Electrolux AB, Series B 145,782
-------------------------------------------------------
25,000 Ericsson LM, Series B 980,511
-------------------------------------------------------
200 Esselte AB, Series A 3,848
-------------------------------------------------------
1,300 Granges AB (b) 20,924
-------------------------------------------------------
5,400 Hennes & Mauritz AB, Series B 241,761
-------------------------------------------------------
-- Continued --
54
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
50 Scancem AB, Series A 1,912
-------------------------------------------------------
2,300 Securitas AB, Series B 67,230
-------------------------------------------------------
2,900 Skandia Forsakrings AB 151,295
-------------------------------------------------------
14,700 Skandinaviska Enskilda Banken, Class A 181,302
-------------------------------------------------------
3,400 Skanska AB, Series B 153,478
-------------------------------------------------------
2,200 SKF AB, Series B 44,228
-------------------------------------------------------
9,400 Stora Kopparbergs Bergslag Aktiebolag, Series A 118,833
-------------------------------------------------------
5,800 Svenska Cellulosa AB, Series B 125,185
-------------------------------------------------------
5,800 Svenska Handelsbanken, Class A 212,099
-------------------------------------------------------
14,600 Swedish Match AB 47,538
-------------------------------------------------------
4,000 Trelleborg AB, Series B 47,854
-------------------------------------------------------
10,900 Volvo AB, Series B 298,445
------------------------------------------------------- ----------
Total 3,885,489
------------------------------------------------------- ----------
Switzerland -- 7.7%
-------------------------------------------------------
220 ABB AB, Bearer 280,282
-------------------------------------------------------
420 Adia SA, Bearer 130,498
-------------------------------------------------------
135 Alusuisse-Lonza Holding, Registered 147,656
-------------------------------------------------------
6,000 Credit Suisse Group, Registered 956,523
-------------------------------------------------------
15 Georg Fischer AG 22,871
-------------------------------------------------------
160 Holderbank Financiere Glarus AG 131,846
-------------------------------------------------------
890 Nestle SA, Registered 1,420,350
-------------------------------------------------------
1,450 Novartis AG, Registered 2,486,012
-------------------------------------------------------
157 Roche Holdgs AG, Genuss 1,632,073
-------------------------------------------------------
37 Roche Holding AG 577,946
-------------------------------------------------------
75 Sairgroup, Registered (b) 96,567
-------------------------------------------------------
115 SMH Swiss Corp. 61,878
-------------------------------------------------------
43 Societe Generale 71,683
-------------------------------------------------------
85 Sulzer AG, Registered 58,869
-------------------------------------------------------
1,720 Swiss Bank Corp. 530,340
-------------------------------------------------------
330 Swiss Reinsurance Co., Registered 650,761
-------------------------------------------------------
440 Union Bank of Switzerland, Bearer 626,460
-------------------------------------------------------
520 Union Bank of Switzerland, Registered 147,826
-------------------------------------------------------
150 Valora Holding AG, Registered 34,510
-------------------------------------------------------
1,075 Zurich Verichrng Gesellschft, Registered 538,353
------------------------------------------------------- ----------
Total 10,603,304
------------------------------------------------------- ----------
Thailand -- 0.0%
-------------------------------------------------------
8,700 CMIC Finance & Securities Co., Ltd. 1,072
-------------------------------------------------------
-- Continued --
55
<PAGE>
Fountain Square International Equity Fund
- -------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Common Stocks--Continued
- ------------------------------------------------------------------
13,300 Finance One PLC (b) 857
-------------------------------------------------------
14,500 General Finance & Securities Co., Ltd. 2,172
-------------------------------------------------------
12,469 Land & House 4,727
-------------------------------------------------------
25,200 TPI Polene Co., Ltd. 1,911
-------------------------------------------------------
9,100 Univest Land Public Co., Ltd. (b) 259
------------------------------------------------------- -----------
Total 10,998
------------------------------------------------------- -----------
Total Common Stocks 124,138,398
------------------------------------------------------- -----------
Preferred Stocks -- 0.6%
- ------------------------------------------------------------------
Australia -- 0.1%
-------------------------------------------------------
20,853 News Corp., Ltd. 112,186
------------------------------------------------------- -----------
Austria -- 0.0%
-------------------------------------------------------
800 Bank Austria (b) 42,918
------------------------------------------------------- -----------
Germany -- 0.4%
-------------------------------------------------------
4,850 RWE AG 224,457
-------------------------------------------------------
942 SAP AG 346,188
------------------------------------------------------- -----------
Total 570,645
------------------------------------------------------- -----------
Italy -- 0.1%
-------------------------------------------------------
47,750 Fiat SpA (b) 87,384
------------------------------------------------------- -----------
Total Preferred Stocks 813,133
------------------------------------------------------- -----------
Warrants and Rights -- 0.0%
- ------------------------------------------------------------------
Australia -- 0.0%
-------------------------------------------------------
5,769 Crown, Ltd. 435
------------------------------------------------------- -----------
France -- 0.0%
-------------------------------------------------------
426 Casino Guichard Perrachon (b) 8,802
-------------------------------------------------------
3,255 Cie Generale Des Eaux (b) 2,382
-------------------------------------------------------
8 Sodexho SA (b) 1,746
------------------------------------------------------- -----------
Total 12,930
------------------------------------------------------- -----------
Hong Kong -- 0.0%
-------------------------------------------------------
590 Peregrine Investment Holdings (b) 1
------------------------------------------------------- -----------
Italy -- 0.0%
-------------------------------------------------------
1,600 Mediobanca/Rinascenter (b) 1,087
-------------------------------------------------------
2,400 Mediobanca/Rinascenter (b) 3,035
-------------------------------------------------------
107,680 Olivetti 16,601
------------------------------------------------------- -----------
Total 20,723
------------------------------------------------------- -----------
Singapore -- 0.0%
-------------------------------------------------------
6,250 Straight Steamship (b) 673
------------------------------------------------------- -----------
-- Continued --
56
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- --------
Warrants and Rights --Continued
- ------------------------------------------------------------------
Thailand -- 0.0%
-------------------------------------------------------
1,290 National Finance & Security (b) 56
------------------------------------------------------- -----------
United States -- 0.0%
-------------------------------------------------------
2,000 Asia Food & Property 120
------------------------------------------------------- -----------
Total Warrants and Rights 34,938
------------------------------------------------------- -----------
Convertible Securities -- 0.1%
- ------------------------------------------------------------------
France -- 0.1%
-------------------------------------------------------
325 Sanofia, Convertible Bond, 4.00%, 1/1/00 38,647
-------------------------------------------------------
277 Simco, Convertible Bond, 3.25%, 1/1/06 24,931
------------------------------------------------------- -----------
Total 63,578
------------------------------------------------------- -----------
Portugal -- 0.0%
-------------------------------------------------------
960 Jeronimo Martins, Convertible Bond, 12/30/04 5,133
------------------------------------------------------- -----------
Total Convertible Securities 68,711
------------------------------------------------------- -----------
Corporate Bonds -- 0.0%
- ------------------------------------------------------------------
France -- 0.0%
-------------------------------------------------------
426 Casino Guichard, 4.50%, 7/12/01 237
-------------------------------------------------------
40,000 Sodexho S.A., 6.00%, 7/6/04 6,742
------------------------------------------------------- -----------
Total 6,979
------------------------------------------------------- -----------
Italy -- 0.0%
-------------------------------------------------------
12,800,000 Mediobanca, 4.50%, 1/1/00 7,007
-------------------------------------------------------
2,125,000 Mediobanca, 6.00%, 12/31/02 1,461
------------------------------------------------------- -----------
Total 8,468
------------------------------------------------------- -----------
Total Corporate Bonds 15,447
------------------------------------------------------- -----------
Repurchase Agreements -- 16.1%
- ------------------------------------------------------------------
United States -- 16.1%
-------------------------------------------------------
22,030,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S. Treasury
Bills due 7/2/98 with a value of $22,473,848. 22,030,000
------------------------------------------------------- -----------
Total Repurchase Agreements 22,030,000
------------------------------------------------------- -----------
Total Investments (Cost $128,635,906) (a)-- 107.5% 147,100,627
-------------------------------------------------------
Liabilities in excess of other assets -- (7.5)% (10,274,426)
------------------------------------------------------- -----------
TOTAL NET ASSETS-- 100.0% $136,826,201
======================================================= ===========
Percentages indicated are based on net assets of $136,826,201.
(a) The cost of investments for federal tax purposes amounts to $128,635,906.
The net unrealized appreciation of investments on federal tax basis amounts
to $18,464,721, which is composed of $26,815,559 appreciation and $8,350,838
depreciation at January 31, 1998.
-- Continued --
57
<PAGE>
Fountain Square International Equity Fund
- --------------------------------------------------------------------------------
(b) Non-income producing security
At January 31, 1998, International Equity Fund's investment concentration, by
industry, was as follows:
Automotive 4.5%
Business & Financial Services 15.7%
Food 3.0%
Insurance 7.4%
Manufacturing 3.8%
Oil & Gas Producers 7.3%
Pharmaceuticals 9.5%
Retail 3.5%
Telecommunications 3.8%
Telephone 5.2%
See notes to financial statements.
58
<PAGE>
Fountain Square Bond Fund For Income
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- -------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ------------- -------------------------------------------------- -----------
Asset Backed Securities -- 3.0%
- ------------------------------------------------------------------
Financial -- 3.0%
--------------------------------------------------
5,000,000 GE Capital Management, 6.94%, 3/25/27 $5,090,000
-------------------------------------------------- -----------
Total Asset Backed Securities 5,090,000
-------------------------------------------------- -----------
Corporate Bonds -- 44.9%
- ------------------------------------------------------------------
Chemicals -- 3.0%
--------------------------------------------------
5,000,000 Engelhard Corp., 7.00%, 8/1/01 5,178,535
-------------------------------------------------- -----------
Financial -- 29.9%
--------------------------------------------------
5,000,000 American General Finance Corp., 7.25%, 4/15/00 5,139,135
--------------------------------------------------
5,000,000 Bear Stearns, Inc., 7.25%, 10/15/06 5,264,825
--------------------------------------------------
5,000,000 Chrysler Corp., Medium Term Note, 6.37%, 6/21/99 5,038,120
--------------------------------------------------
5,000,000 CIT Group Holdings, 6.25%, 3/28/01 5,057,940
--------------------------------------------------
5,000,000 DLJ, Medium Term Note, 6.38%, 5/26/00 5,059,050
--------------------------------------------------
5,000,000 IBM, 6.45%, 8/1/07 5,043,340
-------------------------------------------------
5,000,000 Metropolitan Life, 6.30%, 11/1/03 5,004,150
--------------------------------------------------
5,000,000 Morgan Stanley, 6.38%, 8/1/02 5,069,105
--------------------------------------------------
5,000,000 Paine Webber Group, 6.68%, 2/10/04 5,068,145
--------------------------------------------------
5,000,000 Southern National Corp., 7.05%, 5/23/03 5,237,515
-------------------------------------------------- -----------
Total 50,981,325
-------------------------------------------------- -----------
Manufacturing -- 8.4%
--------------------------------------------------
5,000,000 Amgen, Inc., 6.50%, 12/1/07 5,101,200
--------------------------------------------------
4,000,000 Archers Danial Midland Co., 6.25%, 5/15/03 4,057,496
--------------------------------------------------
5,000,000 Tyco International, Ltd., 6.38%, 1/15/04 5,102,010
-------------------------------------------------- -----------
Total 14,260,706
-------------------------------------------------- -----------
Telecommunications -- 3.0%
--------------------------------------------------
5,000,000 British Telecommunications, Inc., 9.38%, 2/15/99 5,198,515
-------------------------------------------------- -----------
Utilities -- 0.6%
--------------------------------------------------
1,000,000 Southern New England, 8.00%, 11/20/01 1,074,509
-------------------------------------------------- -----------
Total Corporate Bonds 76,693,590
-------------------------------------------------- -----------
-- Continued --
59
<PAGE>
Fountain Square Bond Fund For Income
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ------------- ------------------------------------------------ --------------
U.S. Government Securities -- 49.2%
- ----------------------------------------------------------------
U.S. Government Agencies -- 10.4%
------------------------------------------------
126 Federal Home Loan Mortgage Corp., 7.50%, 2/1/02 129
------------------------------------------------
12,500,000 Federal National Mortgage Assoc., 6.85%, 7/2/02 12,568,563
------------------------------------------------
5,000,000 Federal National Mortgage Assoc., 7.33%, 6/19/07 5,171,635
------------------------------------------------ ------------
Total 17,740,327
------------------------------------------------ ------------
U.S. Treasury Notes -- 38.8%
------------------------------------------------
2,500,000 9.00%, 5/15/98 2,525,000
------------------------------------------------
2,580,000 9.25%, 8/15/98 2,631,600
------------------------------------------------
1,750,000 7.13%, 10/15/98 1,770,781
------------------------------------------------
2,000,000 8.00%, 8/15/99 2,076,876
------------------------------------------------
8,500,000 5.63%, 11/30/99 8,537,188
------------------------------------------------
6,000,000 6.13%, 7/31/00 6,106,878
------------------------------------------------
4,000,000 7.75%, 2/15/01 4,265,000
------------------------------------------------
11,500,000 6.13%, 12/31/01 11,787,500
------------------------------------------------
17,000,000 5.88%, 9/30/02 17,313,446
------------------------------------------------
5,000,000 5.75%, 8/15/03 5,070,315
------------------------------------------------
4,000,000 6.50%, 10/15/06 4,252,500
------------------------------------------------ ------------
Total 66,337,084
------------------------------------------------ ------------
Total U.S. Government Securities 84,077,411
------------------------------------------------ ------------
Repurchase Agreement -- 2.9%
- ----------------------------------------------------------------
4,922,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S.
Treasury Bills due 7/2/98 with a value of
$5,024,084. 4,922,000
------------------------------------------------ ------------
Total Repurchase Agreement 4,922,000
------------------------------------------------ ------------
Total Investments (Cost $167,471,040)
(a)-- 100.0% 170,783,001
------------------------------------------------
Other assets in excess of liabilities-- 0.0% 1,329
------------------------------------------------ ------------
TOTAL NET ASSETS-- 100.0% $170,784,330
================================================ ============
Percentages indicated are based on net assets of $170,784,330.
* The cost of investments for federal tax purposes amounts to $167,471,040. The
net unrealized appreciation of investments on federal tax basis amounts to
$3,311,961, which is composed of $3,324,229 appreciation and $12,268
depreciation at January 31, 1998.
See notes to financial statements.
60
<PAGE>
Fountain Square Quality Bond Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ----------------------------------------------------- -----------
Asset Backed Securities -- 5.7%
- ------------------------------------------------------------------
Financial -- 2.0%
-----------------------------------------------------
2,000,000 GE Capital Management, 6.94%, 3/25/27 $2,036,000
----------------------------------------------------- -----------
Private Label CMOs -- 3.7%
-----------------------------------------------------
3,500,000 Greentree Financial, 7.70%, 9/15/27, Series 1996-D
A4, REMIC 3,694,538
----------------------------------------------------- -----------
Total Asset Backed Securities 5,730,538
----------------------------------------------------- -----------
Corporate Bonds -- 20.5%
- ------------------------------------------------------------------
Financial -- 17.5%
-----------------------------------------------------
4,000,000 First Union Corp., 7.00%, 3/15/06 4,152,295
-----------------------------------------------------
1,000,000 Ford Motor Credit Corp., Floating Rate Note, 11/9/98,
(5.65%, 2/9/98) (b) 999,035
-----------------------------------------------------
2,500,000 GMAC, 6.75%, 2/7/02 2,565,583
-----------------------------------------------------
4,000,000 McDonnel Douglas, 6.56%, 12/24/01 4,102,868
-----------------------------------------------------
2,500,000 Nations Bank, 7.00%, 9/15/01 2,597,118
-----------------------------------------------------
3,000,000 Sears Roebuck, 6.54%, 2/20/03 3,072,006
----------------------------------------------------- ----------
Total 17,488,905
----------------------------------------------------- ----------
Manufacturing -- 1.5%
-----------------------------------------------------
1,500,000 IBP, Inc., Debenture, 6.13%, 2/1/06 1,499,036
----------------------------------------------------- ----------
Utility -- 1.5%
-----------------------------------------------------
1,500,000 Georgia Power, 6.88%, 9/1/02 1,525,002
----------------------------------------------------- ----------
Total Corporate Bonds 20,512,943
----------------------------------------------------- ----------
Mortgage Backed Securities -- 0.0%
- ------------------------------------------------------------------
U.S. Government Agencies -- 0.0%
-----------------------------------------------------
6,465 Federal Home Loan Mortgage Corp., 9.50%, 10/1/02,
Pool #38-0009, CMO 6,683
-----------------------------------------------------
13,961 Federal Home Loan Mortgage Corp., 8.00%, 8/1/08,
Pool #27-2525, CMO 14,477
----------------------------------------------------- ----------
Total Mortgage Backed Securities 21,160
----------------------------------------------------- ----------
U.S. Government Securities -- 63.9%
- ------------------------------------------------------------------
U.S. Government Agencies -- 18.3%
-----------------------------------------------------
3,879,399 Federal National Mortgage Association, 7.00%, 7/18/27 3,926,495
-----------------------------------------------------
1,493,514 Government National Mortgage Association, 7.50%,
8/15/27, Pool #449006 1,538,618
-----------------------------------------------------
12,416,276 Government National Mortgage Association, 7.50%,
9/15/27, Pool #451459 12,791,248
----------------------------------------------------- ----------
Total 18,256,361
----------------------------------------------------- ----------
U.S. Treasury Bonds -- 9.1%
-----------------------------------------------------
9,000,000 6.00%, 2/15/26 9,146,250
----------------------------------------------------- ----------
-- Continued --
61
<PAGE>
Fountain Square Quality Bond Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------ -----------
U.S. Government Securities--Continued
- -------------------------------------------------------------------
U.S. Treasury Notes --36.5%
------------------------------------------------------
14,000,000 5.63%, 11/30/99 14,061,250
------------------------------------------------------
14,750,000 5.75%, 8/15/03 14,957,429
------------------------------------------------------
7,000,000 6.50%, 10/15/06 7,441,875
------------------------------------------------------ -----------
Total 36,460,554
------------------------------------------------------ -----------
Total U.S. Government Securities 63,863,165
------------------------------------------------------ -----------
Repurchase Agreement -- 8.9%
- -------------------------------------------------------------------
8,940,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S. Treasury
Bills due 7/2/98 with a value of $9,123,580. 8,940,000
------------------------------------------------------ -----------
Total Repurchase Agreement 8,940,000
------------------------------------------------------ -----------
Total Investments (Cost $97,895,144) (a)-- 99.0% 99,067,806
------------------------------------------------------
Other assets in excess of liabilities 1.0% 968,404
------------------------------------------------------ -----------
TOTAL NET ASSETS-- 100.0% $100,036,210
====================================================== ===========
Percentages indicated are based on net assets of $100,036,210.
(a) The cost of investments for federal tax purposes amounts to $97,895,144. The
net unrealized appreciation of investments on federal tax basis amounts to
$1,172,662, which is composed of $1,181,653 appreciation and $8,991
depreciation at January 31, 1998.
(b) Current rate and next reset date shown.
The following abbreviations are used in this portfolio:
CMO -- Collateralized Mortgage Obligation
REMIC -- Real Estate Mortgage Investment Conduit
See notes to financial statements.
62
<PAGE>
Fountain Square U.S. Government Securities Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- ----------
U.S. Government Securities -- 95.9%
- --------------------------------------------------------------------
Mortgage Backed Securities -- 16.0%
-------------------------------------------------------
1,310,714 Federal Loan Home Mortgage Corp., 7.00%, 9/1/03,
Gold Pool #N96911 $1,339,038
-------------------------------------------------------
1,346,128 Federal National Mortgage Association, 6.00%, 6/1/01,
Pool #303016 1,346,989
-------------------------------------------------------
4,017,205 Federal National Mortgage Association Gold Series,
6.00%, 10/1/04 4,016,724
------------------------------------------------------- ----------
Total 6,702,751
------------------------------------------------------- ----------
U.S. Government Agencies -- 22.8%
-------------------------------------------------------
1,000,000 Federal Home Loan Bank, 6.29%, 12/23/02 1,006,200
-------------------------------------------------------
2,000,000 Federal Home Loan Bank Coupon Bond, 6.00%, 9/1/00 1,999,714
-------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corp., 6.30%, 4/29/99 1,001,598
-------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corp., 6.50%, 6/8/00,
(Callable 6/8/98 @ 100) 1,003,389
-------------------------------------------------------
500,000 Federal Home Loan Mortgage Corp., 6.70%, 10/9/02,
(Callable 10/9/98 @ 100) 503,602
-------------------------------------------------------
1,000,000 Federal National Mortgage Association, Variable
rate, 4/14/00, Callable 4/14/98 @ 100 (5.78%,
4/14/98) (b) 1,000,440
-------------------------------------------------------
3,000,000 Federal National Mortgage Association, 6.75%, 7/26/04,
Callable 7/26/00 @100 3,067,581
------------------------------------------------------- ----------
Total 9,582,524
------------------------------------------------------- ----------
U.S. Treasury Notes -- 57.1%
-------------------------------------------------------
3,700,000 7.50%, 11/15/01 3,963,625
-------------------------------------------------------
5,600,000 5.88%, 11/30/01 5,690,999
-------------------------------------------------------
5,000,000 6.25%, 1/31/02 5,150,000
-------------------------------------------------------
5,000,000 6.25%, 6/30/02 5,162,500
-------------------------------------------------------
4,000,000 5.75%, 8/15/03 4,056,252
------------------------------------------------------- ----------
Total 24,023,376
------------------------------------------------------- ----------
Total U.S. Government Securities 40,308,651
------------------------------------------------------- ----------
-- Continued --
63
<PAGE>
Fountain Square U.S. Government Securities
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ----------------------------------------------------- ----------
Repurchase Agreements -- 2.8%
- ------------------------------------------------------------------ ----------
1,166,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S. Treasury
Bills due 7/2/98 with a value of $1,193,648. 1,166,000
----------------------------------------------------- -----------
Total Repurchase Agreements 1,166,000
----------------------------------------------------- -----------
Total Investments (Cost $40,724,613) (a)-- 98.7% 41,474,651
-----------------------------------------------------
Other assets in excess of liabilities 1.3% 537,307
----------------------------------------------------- -----------
TOTAL NET ASSETS-- 100.0% $42,011,958
===================================================== ============
Percentages indicated are based on net assets of $42,011,958.
(a) The cost of investments for federal tax purposes amounts to $40,724,613. The
net unrealized appreciation of investments on federal tax basis amounts to
$750,038 which is composed of $761,355 appreciation and $11,317 depreciation
at January 31, 1998.
(b) Current rate and next reset date shown.
See notes to financial statements.
64
<PAGE>
Fountain Square Municipal Bond Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Municipal Bonds -- 93.0%
- ------------------------------------------------------------------
Alabama -- 2.9%
-------------------------------------------------------
1,000,000 Shelby County Board Of Education, Revenue, 5.50%,
2/1/08, (Callable 2/1/05 @ 102) $1,074,890
-------------------------------------------------------
2,000,000 State, Water Pollution Control, Series A, Revenue,
4.75%, 8/15/11 (Callable 2/15/08 @ 100) 2,003,120
------------------------------------------------------- ----------
Total 3,078,010
------------------------------------------------------- ----------
Arizona -- 3.0%
-------------------------------------------------------
1,000,000 Phoenix, GO, 5.80%, 7/1/07 (Callable 7/1/05 @ 102) 1,113,030
-------------------------------------------------------
2,000,000 Salt River Project Agriculture, Revenue, 4.80%, 1/1/07,
Series C 2,074,860
------------------------------------------------------- ----------
Total 3,187,890
------------------------------------------------------- ----------
Arkansas -- 1.9%
-------------------------------------------------------
2,000,000 State Developmental Financial Authority, Health Care
Facilities, Sisters of Mercy Health - Series B,
3.70%, 6/1/12 2,000,000
------------------------------------------------------- ----------
California -- 3.7%
-------------------------------------------------------
2,000,000 State Public Works Board, Lease Revenue, 5.00%, 9/1/11
(Callable 9/1/07 @ 102) 2,062,080
-------------------------------------------------------
2,000,000 Yuba County, Water Agency, Revenue, 4.00%, 3/1/16
(Callable 3/18/98 @ 100), MBIA-IBC 1,877,320
------------------------------------------------------- ----------
Total 3,939,400
------------------------------------------------------- ----------
Delaware -- 2.0%
-------------------------------------------------------
1,000,000 State, GO, 5.80%, 8/15/99 1,031,850
-------------------------------------------------------
1,000,000 Transportation Authority, Revenue, 5.70%, 7/1/06,
(Callable 7/1/02 @ 102) 1,071,920
------------------------------------------------------- ----------
Total 2,103,770
------------------------------------------------------- ----------
Florida -- 6.2%
-------------------------------------------------------
2,455,000 Escambie County, Revenue, 4.60%, 1/1/07 2,499,902
-------------------------------------------------------
1,000,000 Jacksonville Excise Taxes, Revenue, 5.25%, 10/1/08,
(Callable 10/1/03 @ 101) 1,047,430
-------------------------------------------------------
1,000,000 State, GO, 6.20%, 7/1/99, (Callable 7/1/98 @ 100) 1,010,460
-------------------------------------------------------
1,000,000 State Board Of Education Capital Outlay, GO, 6.25%,
6/1/99 1,033,370
-------------------------------------------------------
1,000,000 Volusia County School District, GO, 5.88%, 8/1/00 1,048,120
------------------------------------------------------- ----------
Total 6,639,282
------------------------------------------------------- ----------
Hawaii -- 1.0%
-------------------------------------------------------
1,000,000 Honolulu City & County, GO, 5.80%, 3/1/01 1,052,030
------------------------------------------------------- ----------
-- Continued --
65
<PAGE>
Fountain Square Municipal Bond Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------- --------
Municipal Bonds -- Continued
- ------------------------------------------------------------------
Illinois -- 7.5%
-------------------------------------------------------
1,000,000 Chicago, GO, 5.40%, 1/1/09, (Callable 1/1/04 @ 102) 1,055,270
-------------------------------------------------------
1,000,000 Chicago Park, GO, 6.10%, 11/15/05 1,111,730
-------------------------------------------------------
1,000,000 Chicago Park, GO, 5.20%, 1/1/09, (Callable 1/1/06 @ 102) 1,050,570
-------------------------------------------------------
2,000,000 Chicago, O'Hara International Airport, Revenue, 5.63%,
1/1/15, (Callable 1/1/06 @ 102) 2,103,120
-------------------------------------------------------
2,500,000 University of Illinois, Revenue, 5.25%, 8/15/04 2,631,225
------------------------------------------------------- ----------
Total 7,951,915
------------------------------------------------------- ----------
Indiana -- 3.3%
-------------------------------------------------------
1,000,000 Bank Board, Revenue, 5.80%, 2/1/08, (Callable 2/1/05
@ 101) 1,086,550
-------------------------------------------------------
1,000,000 Municipal Power Agency Supply, Revenue, 5.38%, 1/1/03 1,056,250
-------------------------------------------------------
1,275,000 Munster School Building Corp., Revenue, 5.70%, 7/15/10,
(Callable 1/15/05 @ 101) 1,365,869
------------------------------------------------------- ----------
Total 3,508,669
------------------------------------------------------- ----------
Kansas -- 1.3%
-------------------------------------------------------
1,250,000 Douglas County, Union School District, GO, 6.00%, 9/1/09
(Prerefunded 9/1/03 @ 100) 1,356,413
------------------------------------------------------- ----------
Kentucky -- 1.0%
-------------------------------------------------------
1,000,000 State Property & Buildings Commission, Revenue, 5.30%,
11/1/07, (Callable 11/1/05 @ 102) 1,073,140
------------------------------------------------------- ----------
Maryland -- 1.0%
-------------------------------------------------------
1,000,000 Washington Subern, San District Water System, GO,
5.00%, 6/1/02 1,038,990
------------------------------------------------------- ----------
Massachusetts -- 1.9%
-------------------------------------------------------
2,000,000 State, Series A, GO, 6.10%, 8/1/99 2,069,740
------------------------------------------------------- ----------
Michigan -- 3.8%
-------------------------------------------------------
2,000,000 Johannesburg-Lewiston Schools, GO, 5.00%, 5/1/16,
(Callable 5/1/05 @ 101), MBIA 1,988,020
-------------------------------------------------------
2,000,000 Kent County, Refuse Disposal System, Series A, GO,
5.00%, 11/1/09, (Callable 11/1/06 @ 101) 2,081,320
------------------------------------------------------- ----------
Total 4,069,340
------------------------------------------------------- ----------
Minnesota -- 2.8%
-------------------------------------------------------
3,000,000 Public Facilities Authority, Water Pollution Control,
Revenue, 4.88%, 3/1/12, (Callable 3/1/06 @ 100) 3,016,800
------------------------------------------------------- ----------
Missouri -- 0.8%
-------------------------------------------------------
900,000 State Health Facilities, St. Anthonys Medical Center,
Series A, Revenue, 3.55%, 12/1/19 (b) 900,000
------------------------------------------------------- ----------
-- Continued --
66
<PAGE>
Fountain Square Municipal Bond Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Municipal Bonds--Continued
- ------------------------------------------------------------------
Nebraska -- 0.7%
-------------------------------------------------------
700,000 Lincoln Water Revenue, Revenue, 6.85%, 11/1/03
(Prerefunded 11/1/00 @ 101) 758,730
------------------------------------------------------- ----------
Nevada -- 1.3%
-------------------------------------------------------
1,285,000 Carson City, School District, GO, 5.00%, 4/1/06,
(Callable 4/1/04 @ 101) 1,338,135
------------------------------------------------------- ----------
Ohio -- 7.6%
-------------------------------------------------------
1,000,000 Columbus, GO, 6.88%, 9/15/05, (Callable 9/15/01 @ 100) 1,096,280
-------------------------------------------------------
1,000,000 Columbus Sewer Improvement No 26-E-U, GO, 6.50%,
9/15/01 1,085,990
-------------------------------------------------------
2,000,000 Marion County, Convention & Recreational Facilities
Authority, Series A, Excise Tax Revenue, 5.00%, 6/1/12
(Callable 6/1/08 @ 101) 2,018,220
-------------------------------------------------------
2,000,000 State Public Facilities Commission, Higher Education
Facilities, Series II-A, Revenue, 4.75%, 5/1/03 2,063,620
-------------------------------------------------------
1,000,000 State Public Facilities Commissions, Revenue, 6.50%,
6/1/01, (Callable 6/1/99 @ 102) 1,055,510
-------------------------------------------------------
750,000 University Of Cincinnati, Series R9, Revenue, 5.60%,
6/1/07, (Callable 6/1/03 @ 100) 793,440
------------------------------------------------------- ----------
Total 8,113,060
------------------------------------------------------- ----------
Oklahoma -- 2.0%
-------------------------------------------------------
2,000,000 Oklahoma City, GO, 5.00%, 2/1/08 (Callable 2/1/07 @ 100) 2,083,880
------------------------------------------------------- ----------
Pennsylvania -- 7.6%
-------------------------------------------------------
1,750,000 Intergovernmental, Coop Authority, Revenue, 5.50%,
6/15/16, (Callable 6/15/06 @ 100), FGIC 1,818,880
-------------------------------------------------------
2,000,000 Montoursville, Area Achievement District, Lycoming
County, GO, 5.00%, 5/1/13 (Callable 5/1/08 @ 100) 2,000,000
-------------------------------------------------------
2,000,000 State, Higher Eduction Facilities Authority Health
Services, Revenue, 5.10%, 1/1/05 2,093,600
-------------------------------------------------------
2,000,000 Trinity Area School District, GO, 6.63%, 11/1/11
(Callable 11/1/01 @ 100) 2,182,560
------------------------------------------------------- ----------
Total 8,095,040
------------------------------------------------------- ----------
South Carolina -- 1.9%
-------------------------------------------------------
2,000,000 South Carolina, Series B, GO, 5.00%, 4/1/13 (Callable
4/1/06 @ 102) 2,044,680
------------------------------------------------------- ----------
Texas -- 7.3%
-------------------------------------------------------
2,500,000 Austin Utility System, Series B, Revenue, 7.75%,
11/15/08 (Callable 11/15/98 @ 102) 2,618,950
-------------------------------------------------------
2,000,000 Houston Hotel Occupancy, Revenue, 5.50%, 7/1/15,
(Callable 7/1/05 @ 101) 2,079,100
-------------------------------------------------------
1,000,000 State, GO, 7.00%, 10/1/03, (Prerefunded 10/1/99 @ 100) 1,051,630
-------------------------------------------------------
2,000,000 State, Public Building Authority, Revenue, 5.00%,
8/1/11, (Callable 8/1/07 @ 100) 2,042,480
------------------------------------------------------- ----------
Total 7,792,160
------------------------------------------------------- ----------
-- Continued --
67
<PAGE>
Fountain Square Municipal Bond Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------- --------
Municipal Bonds--Continued
- ------------------------------------------------------------------
Utah -- 2.6%
-------------------------------------------------------
1,000,000 Iron County, School District, GO, 5.90%, 1/15/05 1,097,840
-------------------------------------------------------
1,530,000 St. George, Water Revenue, 5.60%, 6/1/10, (Callable
6/1/05 @ 101) 1,635,998
------------------------------------------------------- ----------
Total 2,733,838
------------------------------------------------------- ----------
Virginia -- 2.0%
-------------------------------------------------------
1,000,000 State, Public Building Authority, Revenue, 5.70%,
8/1/00 1,042,770
-------------------------------------------------------
1,000,000 Virginia Beach, GO, 5.70%, 11/1/07, (Callable 11/1/04 @
102) 1,094,990
------------------------------------------------------- ----------
Total 2,137,760
------------------------------------------------------- ----------
Washington -- 8.2%
-------------------------------------------------------
2,000,000 King County, School District No. 411, GO, 6.50%,
12/1/09, (Prerefunded 12/1/02 @ 100) 2,214,960
-------------------------------------------------------
2,000,000 Seattle Water System, Revenue, 5.10%, 6/1/04, (Callable
6/1/03 @ 102) 2,099,120
-------------------------------------------------------
1,000,000 Spokane, Regional Solid Waste, Revenue, 5.50%, 12/1/10,
(Callable 12/1/05 @ 102) 1,068,050
-------------------------------------------------------
1,000,000 State, Public Power Supply System, Revenue, 7.50%,
7/1/03, (Callable 1/1/01 @ 102) 1,111,550
-------------------------------------------------------
2,000,000 State, Public Power Supply System, Revenue, 5.60%,
7/1/07 2,151,420
------------------------------------------------------- ----------
Total 8,645,100
------------------------------------------------------- ----------
Wisconsin -- 7.7%
-------------------------------------------------------
1,000,000 Milwaukee, GO, 5.30%, 6/15/07, (Prerefunded 6/15/02 @
100) 1,050,590
-------------------------------------------------------
1,000,000 Milwaukee County, GO, 6.00%, 12/1/99, (Prerefunded
12/1/98 @ 100) 1,019,290
-------------------------------------------------------
2,000,000 Milwaukee, Corp. Purpose, Series J, GO, 5.00%, 12/1/10
(Callable 12/1/07 @ 100) 2,067,400
-------------------------------------------------------
2,000,000 State, Series E, GO, 6.80%, 5/1/98 2,015,840
-------------------------------------------------------
2,000,000 Wisconsin, Clean Water, Series 1, Revenue, 4.00%,
6/1/99 2,006,200
------------------------------------------------------- ----------
Total 8,159,320
------------------------------------------------------- ----------
Total Municipal Bonds 98,887,092
------------------------------------------------------- ----------
-- Continued --
68
<PAGE>
Fountain Square Municipal Bond Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- --------- ----------------------------------------------------- ------------
Cash Equivalents -- 7.7%
- ----------------------------------------------------------------
Stifs/Money Markets -- 7.7%
-----------------------------------------------------
3,230,186 Federated Tax Free Trust 3,230,186
-----------------------------------------------------
4,920,000 SEI Institutional Tax Free Fund, 5.60% 4,920,000
----------------------------------------------------- ------------
Total Cash Equivalents 8,150,186
----------------------------------------------------- ------------
Total Investments (Cost $103,669,567) (a) -- 100.7% 107,037,278
-----------------------------------------------------
Liabilities in excess of other assets (0.7)% (719,485)
----------------------------------------------------- ------------
TOTAL NET ASSETS -- 100.0% $106,317,793
===================================================== ============
Percentages indicated are based on net assets of $106,317,793.
(a) The cost of investments for federal tax purposes amounts to $103,669,567.
The net unrealized appreciation of investments on federal tax basis amounts
to $3,367,711, which is composed of $3,394,880 appreciation and $27,169
depreciation at January 31, 1998.
(b) Current rate shown.
The following abbreviations are used in this portfolio:
AMBAC -- American Municipal Bond Assurance Corporation
GO -- General Obligation
FGIC -- Financial Guaranty Insurance Corporation
MBIA -- Municipal Bond Investors Assurance Corporation
See notes to financial statements.
69
<PAGE>
Fountain Square Ohio Tax Free Bond Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- ----------
Municipal Bonds -- 93.9%
- --------------------------------------------------------------------
Ohio -- 93.9%
-------------------------------------------------------
1,100,000 Akron, Sewer System, Revenue, 5.05%, 12/1/03 $1,155,440
-------------------------------------------------------
500,000 Akron, Various Purpose Improvement, GO, 5.60%,
12/1/06 (Callable 12/1/04 @ 102) 546,215
-------------------------------------------------------
1,000,000 Akron, Waterworks System Management, Revenue, 5.90%,
3/1/09 (Callable 3/1/04 @ 102) 1,090,480
-------------------------------------------------------
1,510,000 Bowling Green State University, Revenue, 5.55%, 6/1/10
(Callable 6/1/06 @ 101) 1,625,862
-------------------------------------------------------
5,000,000 Butler County, 5.00%, 4/1/02 5,168,650
-------------------------------------------------------
1,005,000 Centerville, GO, 6.25%, 12/1/06 (Callable 12/1/04 @ 102) 1,138,173
-------------------------------------------------------
2,500,000 Cincinnati, GO, 4.75%, 12/1/99 2,547,100
-------------------------------------------------------
600,000 Cincinnati, GO, 7.00%, 10/1/00 647,310
-------------------------------------------------------
2,000,000 Cincinnati, GO, 4.75%, 12/1/02 2,064,380
-------------------------------------------------------
1,150,000 Cincinnati CSD, Revenue, 5.75%, 6/15/98 1,158,660
-------------------------------------------------------
1,300,000 Clermont County, Hospital Facilities Revenue, Series
A, 3.55%, 12/1/21 (b) 1,300,000
-------------------------------------------------------
1,000,000 Cleveland, GO, 6.70%, 7/1/00 1,057,620
-------------------------------------------------------
4,500,000 Cleveland, GO, 5.30%, 9/1/08 4,835,700
-------------------------------------------------------
4,000,000 Cleveland CSD, Revenue, 5.00%, 6/1/01 4,127,320
-------------------------------------------------------
5,000,000 Cleveland CSD, Revenue, 4.80%, 6/1/03 5,173,250
-------------------------------------------------------
3,000,000 Cleveland Water, Revenue, 5.63%, 1/1/13 (Callable
1/1/06 @ 102) 3,208,050
-------------------------------------------------------
5,000,000 Cleveland, Public Power, Revenue, 5.25%, 11/15/16
(Callable 11/15/06 @ 102) 5,119,650
-------------------------------------------------------
500,000 Cleveland, Waterworks Refunding, First Mortgage,
Series G, Revenue, 5.40%, 1/1/06 536,220
-------------------------------------------------------
5,000,000 Columbus, GO, 6.00%, 6/15/07 5,653,999
-------------------------------------------------------
1,000,000 Columbus, Library Refunding Improvement, Revenue,
5.15%, 10/1/99 1,023,540
-------------------------------------------------------
1,000,000 Columbus, Refunding LT, Series A, GO, 5.30%, 7/1/09
(Callable 7/1/03 @ 101.5) 1,053,300
-------------------------------------------------------
1,000,000 Columbus, Service, GO, 6.80%, 9/15/05 (Prerefunded
9/15/01 @ 100) 1,090,950
-------------------------------------------------------
1,350,000 Columbus, Service, GO, 5.50%, 5/15/08 (Callable
5/15/04 @ 102) 1,454,382
-------------------------------------------------------
1,000,000 Columbus, Sewer Improvement, GO, 6.63%, 9/15/03
(Callable 9/15/01 @ 100) 1,088,410
-------------------------------------------------------
1,000,000 Columbus, Sewer Improvement No 26-E-U, GO, 6.50%,
9/15/01 1,085,990
-------------------------------------------------------
500,000 Columbus, Water Systems Refunding, Revenue, 5.75%,
11/1/00 524,290
-------------------------------------------------------
1,000,000 Columbus, Waterworks Enlargement, GO, 5.10%, 5/1/01 1,035,650
-------------------------------------------------------
-- Continued --
70
<PAGE>
Fountain Square Ohio Tax Free Bond Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- ---------
Municipal Bonds--Continued
- --------------------------------------------------------------------
3,435,000 Cuyahoga County, GO, 5.60%, 5/15/13 3,765,275
-------------------------------------------------------
4,000,000 Cuyahoga Hospital, Revenue, 5.63%, 1/15/13 (Callable
1/15/06 @ 102) 4,239,200
-------------------------------------------------------
1,000,000 Delaware County, Sewer, GO, 5.50%, 12/1/01 1,052,800
-------------------------------------------------------
4,000,000 Dublin School Bonds, 4.65%, 12/1/08, (Callable
12/1/07 @ 101) 4,067,960
-------------------------------------------------------
500,000 Erie County, East Erie Sewer, GO, 7.40%, 12/1/14
(Prerefunded 12/1/00 @ 100) 545,675
-------------------------------------------------------
1,000,000 Euclid CSD, GO, 5.20%, 12/1/10 (Callable 12/1/05 @ 102) 1,051,510
-------------------------------------------------------
1,500,000 Euclid CSD, GO, 5.13%, 12/1/11 (Callable 12/1/05 @ 102) 1,556,835
-------------------------------------------------------
500,000 Euclid CSD, Improvement, GO, 6.70%, 12/1/02 (Callable
12/1/01 @ 102) 555,935
-------------------------------------------------------
1,000,000 Franklin County, GO, 6.80%, 12/1/02 (Prerefunded
12/1/00 @ 102) 1,093,760
-------------------------------------------------------
1,555,000 Franklin County, GO, 6.80%, 12/1/11 (Prerefunded
12/1/00 @ 102) 1,700,797
-------------------------------------------------------
1,000,000 Franklin County, Hospital Revenue Refunding, 7.38%,
5/15/05 (Prerefunded 5/15/00 @ 102) 1,093,700
-------------------------------------------------------
625,000 Franklin County, Hospital Revenue Refunding, 6.40%,
11/1/06 (Prerefunded 11/1/01 @ 102) 686,594
-------------------------------------------------------
1,030,000 Franklin County, Hospital Revenue Refunding, 6.50%,
5/1/07 (Callable 11/1/02 @ 102) 1,143,218
-------------------------------------------------------
1,500,000 Hamilton County, Building Improvement, GO, 5.90%,
12/1/99 1,558,320
-------------------------------------------------------
1,000,000 Hamilton County, Hospital Facilities, Revenue, 6.10%,
1/1/00 1,039,330
-------------------------------------------------------
1,000,000 Hamilton County, Hospital Facilities, Revenue, 6.50%,
1/1/02 (Callable 1/1/01 @ 100) 1,066,500
-------------------------------------------------------
500,000 Hamilton County, Hospital Facilities, Revenue, 7.00%,
1/1/09 (Callable 7/1/98 @ 101) 511,230
-------------------------------------------------------
1,000,000 Hamilton County, Sewer System, Revenue, 5.60%,
12/1/08 (Callable 12/1/05 @ 102) 1,091,570
-------------------------------------------------------
1,000,000 Hilliard CSD, GO, 5.80%, 12/1/03 (Callable 12/1/01
@ 102) 1,079,060
-------------------------------------------------------
1,345,000 Hilliard CSD, GO, 5.25%, 12/1/04 1,430,555
-------------------------------------------------------
500,000 Huron County, GO, 7.00%, 12/1/09 (Prerefunded 12/1/00
@ 100) 542,040
-------------------------------------------------------
500,000 Kettering, Refunding, 4.30%, 12/1/98 502,725
-------------------------------------------------------
1,000,000 Lakota Local School District, 6.40%, 12/1/01 1,084,280
-------------------------------------------------------
505,000 Mahoning County, GO, 5.70%, 12/1/07 (Callable 12/1/04
@ 101) 549,607
-------------------------------------------------------
250,000 Mahoning County, Hospital Facilities, Revenue, 6.80%,
12/1/98 (Callable 6/1/98 @ 100) 255,028
-------------------------------------------------------
1,000,000 Montgomery County, Revenue, 6.50%, 5/15/08 (Callable
5/15/01 @ 102) 1,090,620
-------------------------------------------------------
635,000 Montgomery County, Issue, GO, 7.10%, 9/1/06
(Prerefunded 9/1/00 @ 101.5) 693,115
-------------------------------------------------------
1,750,000 Montgomery County, Refunding, GO, 5.45%, 9/1/10
(Callable 9/1/03 @ 101) 1,836,660
-------------------------------------------------------
1,750,000 Montgomery County, Solid Waste, Revenue, 5.25%,
11/1/04 1,860,128
-------------------------------------------------------
-- Continued --
71
<PAGE>
Fountain Square Ohio Tax Free Bond Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- ---------
Municipal Bonds--Continued
- --------------------------------------------------------------------
3,000,000 Montgomery County, Solid Waste, Revenue, 5.40%,
11/1/08 (Callable 11/1/05 @ 102) 3,220,830
-------------------------------------------------------
1,000,000 Ohio Higher Education, Revenue, 5.15%, 11/1/08
(Callable 11/1/06 @ 101) 1,050,790
-------------------------------------------------------
2,500,000 Ohio Special Obligation, Elementary & Secondary
Education Capital Facilities, Series B, 5.00%, 12/1/06 2,625,500
-------------------------------------------------------
1,250,000 Ohio State Building Authority State Facilities, Adult
Correctional, Series A, Revenue, 5.65%, 10/1/07
(Callable 10/1/04 @ 101) 1,352,500
-------------------------------------------------------
1,000,000 Ohio State Building Authority State Facilities,
Revenue, 5.40%, 10/1/00 1,038,140
-------------------------------------------------------
1,000,000 Ohio State Building Authority State Facilities,
Revenue, 5.40%, 10/1/04 1,070,910
-------------------------------------------------------
1,000,000 Ohio State Building Authority, Revenue, 6.20%, 10/1/07
(Callable 10/1/02 @ 102) 1,101,080
-------------------------------------------------------
1,000,000 Ohio State Building Correctional, Revenue, 5.75%,
10/1/05 1,095,860
-------------------------------------------------------
1,500,000 Ohio State Higher Education, Revenue, 5.00%, 11/1/05 1,573,545
-------------------------------------------------------
500,000 Ohio State Higher Educational Facilities, Revenue,
6.70%, 5/1/01 (Callable 5/1/00 @ 102) 537,800
-------------------------------------------------------
1,000,000 Ohio State Higher Educational Facilities, Series II-B,
Revenue, 5.88%, 12/1/98 1,018,290
-------------------------------------------------------
500,000 Ohio State Higher Educational Facilities, Xavier,
Revenue, 7.20%, 11/1/99, (Prerefunded 11/1/98 @ 100) 513,210
-------------------------------------------------------
5,000,000 Ohio State Highway, GO, 4.80%, 5/15/04 5,178,050
-------------------------------------------------------
5,000,000 Ohio State Public Facilities Commission, 4.25%,
12/1/99 5,044,900
-------------------------------------------------------
500,000 Ohio State Public Facilities Commission, Higher
Education Capital Facilities, Series II-A, FSA, CR,
Revenue, 5.50%, 12/1/03 (Callable 12/1/01 @ 102) 533,145
-------------------------------------------------------
2,000,000 Ohio State Public Facilities Commission, Higher
Education Capital Facilities, Series II-B, 4.50%,
11/1/02 2,041,040
-------------------------------------------------------
2,000,000 Ohio State Public Facilities Common Higher Education,
Revenue, 5.75%, 11/1/04 2,180,480
-------------------------------------------------------
2,000,000 Ohio State Public Facilities Common Higher Education,
Revenue, 5.75%, 11/1/05 (Callable 11/1/04 @ 100) 2,174,360
-------------------------------------------------------
1,000,000 Ohio State Public Facilities Common Higher Education,
Revenue, 5.50%, 12/1/00 1,043,050
-------------------------------------------------------
1,000,000 Ohio State Public Facilities, Revenue, 5.88%, 12/1/06
(Callable 12/1/04 @ 100) 1,092,370
-------------------------------------------------------
1,000,000 Ohio State Special Obligations, Revenue, 5.80%, 6/1/03 1,082,170
-------------------------------------------------------
5,000,000 Ohio State Turnpike, Revenue, 5.75%, 2/15/14 (Callable
2/15/06 @ 102) 5,416,299
-------------------------------------------------------
1,500,000 Ohio State University Refunding, Revenue, 5.15%,
12/1/00 1,551,030
-------------------------------------------------------
2,000,000 Ohio State University Revenue Refunding General
Receipts, 5.75%, 12/1/09 (Callable 12/1/02 @ 102) 2,146,920
-------------------------------------------------------
5,000,000 Ohio State Water, Revenue, 5.13%, 12/1/08 (Callable
6/1/05 @ 101) 5,251,600
- --------------------------------------------------------------------
-- Continued --
72
<PAGE>
Fountain Square Ohio Tax Free Bond Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------------------- ---------
Municipal Bonds--Continued
- --------------------------------------------------------------------
5,000,000 Ohio State Water Development Authority, Revenue,
5.30%, 12/1/10 (Callable 6/1/05 @ 101) 5,267,300
-------------------------------------------------------
5,000,000 State Of Ohio, GO, 5.10%, 8/1/09 (Callable 8/1/07
@ 101) 5,270,300
-------------------------------------------------------
555,000 Tiffin, GO, 6.60%, 12/1/03 (Callable 12/1/01 @ 101) 606,432
-------------------------------------------------------
400,000 Toledo, Improvement, GO, 5.05%, 12/1/99 409,572
-------------------------------------------------------
3,000,000 University Of Cincinnati, 5.00%, 6/1/10 3,140,640
-------------------------------------------------------
500,000 University of Cincinnati, 6.30%, 12/1/00 532,280
-------------------------------------------------------
1,000,000 University of Toledo, 7.50%, 6/1/02, (Callable 6/1/98
@ 102) 1,032,600
-------------------------------------------------------
2,000,000 Wauseon Village School District, GO, 5.45%, 12/1/14
(Callable 6/1/07 @ 101) 2,111,160
-------------------------------------------------------
1,000,000 West Geauga, Local School District, GO, 5.55%, 11/1/05
(Callable 11/1/04 @ 101) 1,087,100
-------------------------------------------------------
1,000,000 West Geauga, Local School District, GO, 5.65%, 11/1/06
(Callable 11/1/04 @ 102) 1,095,180
-------------------------------------------------------
2,000,000 Westlake CSD, 5.05%, 12/1/04 2,103,640
-------------------------------------------------------
1,000,000 Westlake, GO, 5.75%, 12/1/07 (Callable 12/1/04 @ 102) 1,096,230
------------------------------------------------------- -----------
Total Municipal Bonds 169,940,921
------------------------------------------------------- -----------
Regulated Investment Companies -- 5.0%
- --------------------------------------------------------------------
STIFS/Money Markets -- 5.0%
-------------------------------------------------------
7,074,645 Midwest Ohio Money Fund 7,074,645
-------------------------------------------------------
2,000,000 Vangard Ohio Tax Free Money Mkt 2,000,000
------------------------------------------------------- -----------
Total Regulated Investment Companies 9,074,645
------------------------------------------------------- -----------
Total Investments (Cost $171,720,497) (a)-- 98.9% 179,015,566
-------------------------------------------------------
Other assets in excess of liabilities 1.1% 1,958,243
------------------------------------------------------- -----------
TOTAL NET ASSETS -- 100.0% $180,973,809
======================================================= ===========
Percentages indicated are based on net assets of $180,973,809.
Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
(a) The cost of investments for federal tax purposes amounts to $171,720,497.
The net unrealized appreciation of investments on federal tax basis amounts
to $7,295,069, which is composed of $7,356,607 appreciation and $61,538
depreciation at January 31, 1998.
(b) Current rate and next reset date shown.
The following abbreviations are used in this portfolio:
CSD -- City School District
GO -- General Obligation
LT -- Limited Tax
NR -- Not Rated
See notes to financial statements.
73
<PAGE>
Fountain Square Commercial Paper Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- -----------------------------------------------------------------------------
Shares or
Principal Security Amortized
Amount Description Cost
- ---------- ------------------------------------------------------- ----------
Commercial Paper -- 78.6%
- ------------------------------------------------------------------
Banks -- 9.8%
-------------------------------------------------------
10,000,000 JP Morgan, 3/16/98 $9,932,155
-------------------------------------------------------
10,000,000 Rabobank Nederland, 4/9/98 9,896,336
-------------------------------------------------------
9,000,000 Rabobank Nederland, 4/10/98 8,903,780
-------------------------------------------------------
5,000,000 Societe Generale, 3/23/98 4,962,153
-------------------------------------------------------
10,000,000 Societe Generale, 4/22/98 9,876,889
------------------------------------------------------- ----------
Total 43,571,313
------------------------------------------------------- ----------
Beverages -- 2.2%
-------------------------------------------------------
10,000,000 Coca Cola Co., 3/20/98 9,925,975
------------------------------------------------------- ----------
Brokerage -- 6.9%
-------------------------------------------------------
5,000,000 Goldman Sachs Group, 2/20/98 4,985,090
-------------------------------------------------------
6,000,000 Goldman Sachs Group, 4/17/98 5,929,000
-------------------------------------------------------
8,000,000 Goldman Sachs Group, 5/8/98 7,879,467
-------------------------------------------------------
7,000,000 Merrill Lynch, 4/6/98 6,932,053
-------------------------------------------------------
5,000,000 Merrill Lynch, 4/30/98 4,930,456
------------------------------------------------------- ----------
Total 30,656,066
------------------------------------------------------- ----------
Capital Goods -- 3.4%
-------------------------------------------------------
10,000,000 Cargill, Inc., 3/18/98 9,929,500
-------------------------------------------------------
5,000,000 Cargill, Inc., 4/1/98 4,953,619
------------------------------------------------------- ----------
Total 14,883,119
------------------------------------------------------- ----------
Consumer Products -- 1.8%
-------------------------------------------------------
8,000,000 Procter & Gamble, 3/25/98 7,935,867
------------------------------------------------------- ----------
Energy -- 7.4%
-------------------------------------------------------
10,000,000 Petrofina Delaware, 3/23/98 9,924,444
-------------------------------------------------------
4,000,000 Petrofina Delaware, 4/22/98 3,951,556
-------------------------------------------------------
10,000,000 Wisconsin Power & Light, 2/5/98 9,993,578
-------------------------------------------------------
9,000,000 Wisconsin Power & Light, 2/17/98 8,976,600
------------------------------------------------------- ----------
Total 32,846,178
------------------------------------------------------- ----------
Financial -- 36.7%
-------------------------------------------------------
3,000,000 A.I. Credit, 2/5/98 2,998,167
-------------------------------------------------------
5,000,000 American Express Credit Corp., 4/27/98 4,934,243
-------------------------------------------------------
7,000,000 American Express Credit Corp., 5/26/98 6,878,146
-------------------------------------------------------
-- Continued --
74
<PAGE>
Fountain Square Commercial Paper Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Amortized
Amount Description Cost
- ---------- ------------------------------------------------------- ----------
Commercial Paper--Continued
- ------------------------------------------------------------------
4,000,000 American General Finance Corp., 2/12/98 3,993,229
-------------------------------------------------------
5,000,000 American General Finance Corp., 4/15/98 4,945,554
-------------------------------------------------------
4,000,000 American General Finance Corp., 4/29/98 3,947,317
-------------------------------------------------------
7,000,000 American General Finance Corp., 5/11/98 6,895,088
-------------------------------------------------------
5,000,000 Associates Corp., 3/5/98 4,975,378
-------------------------------------------------------
7,000,000 Associates Corp., 3/12/98 6,958,368
-------------------------------------------------------
8,000,000 Associates Corp., 4/14/98 7,909,120
-------------------------------------------------------
5,000,000 Avco Financial Services, 2/24/98 4,981,903
-------------------------------------------------------
8,000,000 Avco Financial Services, 3/13/98 7,949,422
-------------------------------------------------------
6,000,000 CIT Group, 3/27/98 5,950,050
-------------------------------------------------------
5,000,000 CIT Group, 4/3/98 4,953,318
-------------------------------------------------------
10,000,000 Deutsche Bank Financial, 2/2/98 9,998,424
-------------------------------------------------------
4,000,000 Ford Motor Credit Corp., 2/10/98 3,994,490
-------------------------------------------------------
5,000,000 Ford Motor Credit Corp., 3/23/98 4,960,347
-------------------------------------------------------
10,000,000 Ford Motor Credit Corp., 4/8/98 9,899,258
-------------------------------------------------------
7,000,000 General Electric Capital Corp., 4/16/98 6,921,581
-------------------------------------------------------
5,000,000 General Electric Capital Corp., 5/15/98 4,919,174
-------------------------------------------------------
4,000,000 IBM Credit Corp., 2/9/98 3,995,102
-------------------------------------------------------
8,000,000 MetLife Funding, 3/23/98 7,939,444
-------------------------------------------------------
10,000,000 Pitney Bowes Credit Corp., 2/4/98 9,995,458
-------------------------------------------------------
10,000,000 Pitney Bowes Credit Corp., 5/13/98 9,849,903
-------------------------------------------------------
6,000,000 Prudential Funding Corp., 3/19/98 5,956,300
-------------------------------------------------------
6,000,000 Prudential Funding Corp., 3/26/98 5,949,650
------------------------------------------------------- -----------
Total 162,648,434
------------------------------------------------------- -----------
Miscellaneous -- 4.4%
-------------------------------------------------------
3,500,000 Stanford University, 2/2/98 3,499,463
-------------------------------------------------------
6,000,000 Stanford University, 3/23/98 5,954,000
-------------------------------------------------------
10,000,000 Stanford University, 5/6/98 9,856,911
------------------------------------------------------- -----------
Total 19,310,374
------------------------------------------------------- -----------
Technology -- 6.0%
-------------------------------------------------------
4,800,000 AT&T Corp., 2/5/98 4,797,056
-------------------------------------------------------
5,000,000 AT&T Corp., 3/13/98 4,969,000
-------------------------------------------------------
5,000,000 Bell South Telecommunications, 2/11/98 4,992,056
-------------------------------------------------------
12,000,000 Bell South Telecommunications, 2/13/98 11,977,160
------------------------------------------------------- -----------
Total 26,735,272
------------------------------------------------------- -----------
Total Commercial Paper 348,512,598
------------------------------------------------------- -----------
-- Continued --
75
<PAGE>
Fountain Square Commercial Paper Fund
- -----------------------------------------------------------------------------
Shares or
Principal Security Amortized
Amount Description Cost
- --------- ------------------------------------------------------ ----------
Corporate Bonds -- 1.4%
- -----------------------------------------------------------------
Brokerage -- 1.4%
------------------------------------------------------
6,000,000 Merrill Lynch, Floating Rate Note, 5.57%, 2/27/98 (b) 6,000,065
------------------------------------------------------ -----------
Total Corporate Bonds 6,000,065
------------------------------------------------------ -----------
Repurchase Agreements -- 20.5%
- -----------------------------------------------------------------
50,724,000 JP Morgan, 5.58%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Notes,
6.38%, due 5/15/99 with a value of $51,739,275. 50,724,000
------------------------------------------------------
20,000,000 Prudential Securities, 5.56%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S. Treasury
Notes, 5.88%, due 8/31/99 with a value of $9,879,805
and U.S. Treasury Bonds, 11.25% -- 11.88%, due
2/15/15 -- 11/15/03 with a value of $10,521,285. 20,000,000
------------------------------------------------------
20,000,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Bills
due 7/2/98 with a value of $20,404,532. 20,000,000
------------------------------------------------------ -----------
Total Repurchase Agreements 90,724,000
------------------------------------------------------ -----------
Total Investments (Amortized Cost $445,236,663)
(a) -- 100.5% 445,236,663
------------------------------------------------------
Liabilities in excess of other assets -- (0.5)% (2,306,054)
------------------------------------------------------ -----------
TOTAL NET ASSETS-- 100.0% $442,930,609
====================================================== ===========
Percentages indicated are based on net assets of $442,930,609.
(a) Also represents cost for federal tax purposes.
(b) Current rate and next demand date shown.
See notes to financial statements.
76
<PAGE>
Fountain Square Government Cash Reserves Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Amortized
Amount Description Cost
- ---------- ------------------------------------------------------ --------
U.S. Government Agencies-- 100.3%
- ------------------------------------------------------------------
Federal Farm Credit Bank -- 12.2%
-------------------------------------------------------
5,991,000 Discount Note, 2/18/98 $5,975,440
-------------------------------------------------------
4,000,000 Discount Note, 2/20/98 3,988,368
-------------------------------------------------------
5,000,000 Discount Note, 2/23/98 4,983,408
-------------------------------------------------------
9,000,000 Discount Note, 3/23/98 8,932,875
-------------------------------------------------------
10,000,000 Discount Note, 4/15/98 9,891,919
-------------------------------------------------------
6,000,000 Discount Note, 5/15/98 5,906,442
------------------------------------------------------- -----------
Total 39,678,452
------------------------------------------------------- -----------
Federal Home Loan Bank -- 70.6%
-------------------------------------------------------
20,000,000 Discount Note, 2/4/98 19,991,066
-------------------------------------------------------
15,248,000 Discount Note, 2/6/98 15,236,412
-------------------------------------------------------
5,000,000 Discount Note, 2/10/98 4,993,213
-------------------------------------------------------
12,000,000 Discount Note, 2/13/98 11,978,553
-------------------------------------------------------
15,000,000 Discount Note, 2/18/97 14,960,817
-------------------------------------------------------
11,000,000 Discount Note, 2/20/98 10,968,666
-------------------------------------------------------
7,250,000 Discount Note, 2/25/97 7,223,054
-------------------------------------------------------
10,000,000 Discount Note, 3/5/98 9,951,378
-------------------------------------------------------
10,000,000 Discount Note, 3/10/98 9,944,808
-------------------------------------------------------
4,000,000 Discount Note, 3/11/98 3,977,411
-------------------------------------------------------
10,000,000 Discount Note, 3/18/98 9,931,875
-------------------------------------------------------
10,000,000 Discount Note, 3/19/98 9,929,850
-------------------------------------------------------
13,000,000 Discount Note, 3/20/98 12,907,658
-------------------------------------------------------
15,455,000 Discount Note, 3/25/98 15,335,502
-------------------------------------------------------
5,000,000 Discount Note, 4/1/98 4,956,037
-------------------------------------------------------
10,000,000 Discount Note, 4/8/98 9,901,550
-------------------------------------------------------
4,000,000 Discount Note, 4/15/98 3,956,524
-------------------------------------------------------
4,000,000 Discount Note, 4/17/98 3,954,750
-------------------------------------------------------
5,000,000 Floating Rate Note, 5.61%, 2/4/98 (b) 5,000,000
-------------------------------------------------------
10,000,000 Discount Note, 4/23/98 9,875,688
-------------------------------------------------------
10,000,000 Discount Note, 4/29/98 9,870,225
-------------------------------------------------------
10,000,000 Discount Note, 6/5/98 9,810,211
-------------------------------------------------------
5,000,000 Discount Note, 6/10/98 4,901,817
-------------------------------------------------------
10,000,000 Discount Note, 6/17/98 9,793,356
------------------------------------------------------- -----------
Total 229,350,421
------------------------------------------------------- -----------
-- Continued --
77
<PAGE>
Fountain Square Government Cash Reserves Fund
- --------------------------------------------------------------------------------
Shares or
Principal Security Amortized
Amount Description Cost
- ---------- ------------------------------------------------------- --------
U.S. Government Agencies--Continued
- ------------------------------------------------------------------
Student Loan Marketing Association -- 16.0%
-------------------------------------------------------
3,000,000 Floating Rate Note, 5.41%, 2/3/98 (b) 2,997,210
-------------------------------------------------------
10,000,000 Floating Rate Note, 5.42%, 2/3/98 (b) 10,000,000
-------------------------------------------------------
10,000,000 Floating Rate Note, 5.56%, 2/3/98 (b) 10,000,000
-------------------------------------------------------
29,050,000 Master Note, 5.46%, 7/1/00 (c) 29,050,000
------------------------------------------------------- -----------
Total 52,047,210
------------------------------------------------------- ----------
Tennesse Valley Authority -- 1.5%
-------------------------------------------------------
5,000,000 Discount Note, 2/13/98 4,990,700
------------------------------------------------------- -----------
Total U.S. Government Agencies 326,066,783
------------------------------------------------------- -----------
Total Investments (Amortized Cost $326,066,783)
(a) -- 100.3% 326,066,783
-------------------------------------------------------
Liabilities in excess of other assets -- (0.3)% (858,738)
------------------------------------------------------- -----------
TOTAL NET ASSETS -- 100.0% $325,208,045
======================================================= ===========
Percentages indicated are based on net assets of $325,208,045.
(a) Also represents cost for federal tax purposes.
(b) Current rate and next demand date shown.
(c) Current rate shown.
See notes to financial statements.
78
<PAGE>
Fountain Square U.S. Treasury Obligations Fund
Schedule of Portfolio Investments
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Security Amortized
Amount Description Cost
- ---------- ------------------------------------------------------- ---------
U.S. Government Securities -- 24.1%
- ------------------------------------------------------------------
U.S. Treasury Notes -- 24.1%
-------------------------------------------------------
10,000,000 5.13%, 3/31/98 $9,986,277
-------------------------------------------------------
20,000,000 6.13%, 3/31/98 20,007,917
-------------------------------------------------------
20,000,000 5.88%, 4/30/98 20,012,394
-------------------------------------------------------
20,000,000 6.00%, 5/31/98 20,022,483
-------------------------------------------------------
20,000,000 6.25%, 6/30/98 20,049,643
-------------------------------------------------------
10,000,000 5.25%, 7/31/98 9,976,165
-------------------------------------------------------
10,000,000 6.25%, 7/31/98 10,026,776
-------------------------------------------------------
20,000,000 4.75%, 8/31/98 19,897,368
-------------------------------------------------------
20,000,000 6.13%, 8/31/98 20,088,487
-------------------------------------------------------
10,000,000 4.75%, 9/30/98 9,947,634
------------------------------------------------------- -----------
Total U.S. Government Securities 160,015,144
------------------------------------------------------- -----------
Repurchase Agreements -- 75.9%
- ------------------------------------------------------------------
105,000,000 Barclays Capital, 5.57%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Notes,
6.25%, due 6/30/02 with a value of $107,100,582. 105,000,000
-------------------------------------------------------
30,000,000 Bear Stearns & Co., 5.57%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S. Treasury
Bonds, 6.88%-13.75%, due 8/15/04-8/15/25 with a value
of $30,706,104. 30,000,000
-------------------------------------------------------
30,000,000 BT Securities, 5.55%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Notes,
6.63%, due 7/31/01 with a value of $30,629,000. 30,000,000
-------------------------------------------------------
30,000,000 Deutsche Bank, 5.54%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Notes,
7.50%, due 11/15/16 with a value of $30,623,000. 30,000,000
-------------------------------------------------------
114,259,000 JP Morgan, 5.58%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Notes,
5.88%-6.88%, due 7/31/99-11/30/01 with a value of
$116,544,382. 114,259,000
-------------------------------------------------------
30,000,000 Merrill Lynch, 5.55%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Notes,
5.50%-6.13%, due 4/15/00-8/15/07 with a value of
$9,297,451 and by U.S. Treasury Bonds, 11.25%, due
2/15/15 with a value of $21,306,324. 30,000,000
-------------------------------------------------------
30,000,000 Nesbitt Burns, 5.55%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Notes,
5.63%-6.63%, due 10/31/99-7/31/01 with a value of
$30,698,000. 30,000,000
-------------------------------------------------------
-- Continued --
79
<PAGE>
Fountain Square U.S. Treasury Obligations Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
- --------- ------------------------------------------------------- ---------
Repurchase Agreements--Continued
- -------------------------------------------------------------------
<S> <C> <C>
30,000,000 Prudential Securities, 5.56%, dated 1/30/98, due 2/2/98
(at amortized cost), collateralized by U.S. Treasury
Notes, 6.25%-6.50%, due 5/31/01-8/31/02, with a value
of $8,292,184 and by U.S. Treasury Bonds, 11.25%, due
2/15/15 with a value of $22,309,199. 30,000,000
-------------------------------------------------------
105,000,000 UBS Securities, 5.58%, dated 1/30/98, due 2/2/98 (at
amortized cost), collateralized by U.S. Treasury Bills
due 4/16/98-7/2/98 with a value of $107,101,619. 105,000,000
------------------------------------------------------- -----------
Total Repurchase Agreements 504,259,000
------------------------------------------------------- -----------
Total Investments (Amortized Cost $664,274,144)
(a) -- 100.0% 664,274,144
-------------------------------------------------------
Liabilities in excess of other assets-- 0.0% (186,208)
------------------------------------------------------- -----------
TOTAL NET ASSETS-- 100.0% $664,087,936
======================================================= ===========
</TABLE>
Percentages indicated are based on net assets of $664,087,936.
(a) Also represents cost for federal tax purposes.
See notes to financial statements.
80
<PAGE>
Fountain Square Funds
Statements of Assets and Liabilities
January 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Quality Equity International
Growth Income Balanced Mid Cap Equity
Fund Fund Fund Fund Fund
-------------- ------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Assets:
- -----------------------------------------------
Investments, at value (Cost $311,979,150;
$85,651,820; $105,553,043; $151,200,482;
and $106,605,906, respectively) $457,733,774 $130,626,169 $131,922,087 $205,303,600 $125,070,627
- -----------------------------------------------
Repurchase agreements (Cost $14,026,000;
$1,930,000; $23,444,000; $12,907,000; and
$22,030,000, respectively) 14,026,000 1,930,000 23,444,000 12,907,000 22,030,000
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total Investments 471,759,774 132,556,169 155,366,087 218,210,600 147,100,627
- -----------------------------------------------
Cash 166 161 928 51 -
- -----------------------------------------------
Foreign Currency - - - - 668,646
- -----------------------------------------------
Interest and dividends receivable 235,916 212,795 747,061 30,161 214,970
- -----------------------------------------------
Receivable for investments sold - - 82 - -
- -----------------------------------------------
Receivable for Fund shares sold 376,250 237,101 243,087 73,593 6,623
- -----------------------------------------------
Unrealized foreign currency gains - - - - 1,253,629
- -----------------------------------------------
Reclaim Receivable - - - - 179,472
- -----------------------------------------------
Unamortized organizational costs - 5,951 - - 14,975
- -----------------------------------------------
Prepaid expenses and other assets 19,145 7,688 6,847 7,665 29,617
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total Assets 472,391,251 133,019,865 156,364,092 218,322,070 149,468,559
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Liabilities:
- -----------------------------------------------
Cash Overdraft - - - - 11,419,520
- -----------------------------------------------
Payable for investments purchased - - 4,246,647 5,506,384 692,701
- -----------------------------------------------
Payable for Fund shares redeemed 19,993 - 55,742 1,560 -
- -----------------------------------------------
Unrealized foreign currency losses - - - - 199,501
- -----------------------------------------------
Variation margin payable - - - - 149,645
- -----------------------------------------------
Accrued expenses and other payables:
- -----------------------------------------------
Investment advisory fees 308,436 88,460 98,943 139,839 112,809
- -----------------------------------------------
Administration fees 62,843 11,374 12,738 21,469 20,643
- -----------------------------------------------
Distribution Services - Investment C Shares 18,958 681 7,512 3,520 192
- -----------------------------------------------
Shareholder Servicing - Investment C Shares 8,653 269 3,302 1,617 96
- -----------------------------------------------
Accounting and transfer agent fees 4,617 6,727 7,357 3,694 3,100
- -----------------------------------------------
Custodian fees 1,000 600 900 500 11,099
- -----------------------------------------------
Legal and audit fees 5,519 5,519 5,519 5,219 6,269
- -----------------------------------------------
Printing fees 5,894 3,349 3,828 1,359 2,002
- -----------------------------------------------
Registration & Filing 3,091 3,670 8,231 1,686 -
- -----------------------------------------------
Other - 4,306 7,216 - 24,781
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total Liabilities 439,004 124,955 4,457,935 5,686,847 12,642,358
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Net Assets:
- -----------------------------------------------
Paid-in capital 315,984,185 81,241,114 122,601,467 151,105,110 126,282,948
- -----------------------------------------------
Net unrealized appreciation (depreciation)
on investments and foreign currency 145,754,624 44,974,349 26,369,044 54,103,118 19,746,558
- -----------------------------------------------
Accumulated net realized gains (losses) on
investment and foreign currency transactions 10,433,737 6,711,049 2,716,946 7,782,774 (5,330,537)
- -----------------------------------------------
Undistributed net investment income (loss) (220,299) (31,602) 218,700 (355,779) (3,872,768)
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total Net Assets $471,952,247 $132,894,910 $151,906,157 $212,635,223 $136,826,201
- ----------------------------------------------- ============== ============= ============== ============== ==============
Net Assets
- -----------------------------------------------
Investment A Shares $465,714,502 $132,469,067 $149,223,068 $211,767,864 $136,602,630
- -----------------------------------------------
Investment C Shares 6,237,745 425,843 2,683,089 867,359 223,571
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total $471,952,247 $132,894,910 $151,906,157 $212,635,223 $136,826,201
- ----------------------------------------------- ============== ============= ============== ============== ==============
Outstanding units of beneficial
interest (shares)
- -----------------------------------------------
Investment A Shares 25,149,528 9,065,912 10,341,510 12,892,996 12,635,406
- -----------------------------------------------
Investment C Shares 338,726 29,123 185,836 53,348 20,694
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total 25,488,254 9,095,035 10,527,346 12,946,344 12,656,100
- ----------------------------------------------- ============== ============= ============== ============== ==============
Net asset value
- -----------------------------------------------
Redemption price per share-Investment A
Shares $ 18.52 $ 14.61 $ 14.43 $ 16.43 $ 10.81
- ----------------------------------------------- ============== ============= ============== ============== ==============
Offering price per share-Investment C
Shares* $ 18.42 $ 14.62 $ 14.44 $ 16.26 $ 10.80
- ----------------------------------------------- ============== ============= ============== ============== ==============
Maximum Sales Charge 4.50% 4.50% 4.50% 4.50% 4.50%
- ----------------------------------------------- ============== ============= ============== ============== ==============
Maximum Offering Price
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to nearest cent)
per share (Investment A Shares) $ 19.39 15.30 $ 15.11 $ 17.20 $ 11.32
- ----------------------------------------------- ============== ============= ============== ============== ==============
</TABLE>
*Redemption price per share varies by length of time shares are held.
(See Notes which are an integral part of the Financial Statements)
81
<PAGE>
Fountain Square Funds
Statements of Assets and Liabilities
January 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Ohio
Bond Fund Quality Government Municipal Tax Free
For Bond Securities Bond Bond
Income Fund Fund Fund Fund
-------------- ------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Assets:
- -----------------------------------------------
Investments, at value (Cost $162,549,040;
$88,955,144; $39,558,613; $103,669,567;
and $171,720,497, respectively) $165,861,001 $ 90,127,806 $ 40,308,651 $107,037,278 $179,015,566
- -----------------------------------------------
Repurchase agreements (Cost $4,922,000;
$8,940,000; $1,166,000; $0; and $0,
respectively) 4,922,000 8,940,000 1,166,000 - -
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total Investments 170,783,001 99,067,806 41,474,651 107,037,278 179,015,566
- -----------------------------------------------
Cash 561 775 962 - -
- -----------------------------------------------
Interest receivable 3,222,647 1,703,721 558,334 1,342,447 1,958,370
- -----------------------------------------------
Receivable for investments sold 7,259,005 4,083,032 - 2,012,260 -
- -----------------------------------------------
Receivable for Fund shares sold - 188,959 - 23,875 75,000
- -----------------------------------------------
Unamortized organizational costs 7,197 - - 5,841 1,496
- -----------------------------------------------
Prepaid expenses and other assets 8,011 5,901 7,689 8,424 37,260
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total Assets 181,280,422 105,050,194 42,041,636 110,430,125 181,087,692
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Liabilities:
- -----------------------------------------------
Payable for investments purchased 10,166,434 4,811,973 - 4,006,200 -
- -----------------------------------------------
Payable for Fund shares redeemed 2,500 2,500 - - 2,773
- -----------------------------------------------
Interest Payable 214,244 128,954 - 39,432 -
- -----------------------------------------------
Accrued expenses and other payables:
- -----------------------------------------------
Investment advisory fees 78,681 46,294 16,719 48,845 83,184
- -----------------------------------------------
Administration fees 17,579 6,975 2,946 7,360 12,540
- -----------------------------------------------
Distribution Services - Investment C Shares 233 1,681 577 138 1,266
- -----------------------------------------------
Shareholder Servicing - Investment C Shares 97 841 288 69 633
- -----------------------------------------------
Accounting and transfer agent fees 3,141 4,617 2,470 2,239 3,179
- -----------------------------------------------
Custodian fees 725 762 500 571 998
- -----------------------------------------------
Legal and audit fees 5,519 5,519 5,519 5,519 5,519
- -----------------------------------------------
Printing fees 2,704 2,521 659 1,179 2,061
- -----------------------------------------------
Registration & Filing 3,012 1,347 - 780 1,730
- -----------------------------------------------
Other 1,223 - - - -
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total Liabilities 10,496,092 5,013,984 29,678 4,112,332 113,883
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Net Assets:
- -----------------------------------------------
Paid-in capital 166,628,408 99,945,772 42,705,152 102,251,334 173,590,384
- -----------------------------------------------
Net unrealized appreciation (depreciation)
on investments 3,311,961 1,172,662 750,038 3,367,711 7,295,069
- -----------------------------------------------
Accumulated net realized gains (losses) on
investment transactions 850,765 (1,084,226) (1,426,447) 693,612 157,194
- -----------------------------------------------
Undistributed net investment income (loss) (6,804) 2,002 (16,785) 5,136 (68,838)
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total Net Assets $170,784,330 $100,036,210 $ 42,011,958 $106,317,793 $180,973,809
- ----------------------------------------------- ============== ============= ============== ============== ==============
Net Assets
- -----------------------------------------------
Investment A Shares $170,670,669 $ 99,838,150 $ 41,942,721 $106,317,793 $180,543,945
- -----------------------------------------------
Investment C Shares 113,661 198,060 69,237 - 429,864
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total $170,784,330 $100,036,210 $ 42,011,958 $106,317,793 $180,973,809
- ----------------------------------------------- ============== ============= ============== ============== ==============
Outstanding units of beneficial interest
(shares)
- -----------------------------------------------
Investment A Shares 13,928,763 10,000,239 4,249,670 8,624,698 17,432,663
- -----------------------------------------------
Investment C Shares 9,284 19,836 7,031 - 41,527
- ----------------------------------------------- -------------- ------------- -------------- -------------- --------------
Total 13,938,047 10,020,075 4,256,701 8,624,698 17,474,190
- ----------------------------------------------- ============== ============= ============== ============== ==============
Net asset value
- -----------------------------------------------
Redemption price per share-Investment A
Shares $ 12.25 $ 9.98 $ 9.87 $ 12.33 $ 10.36
- ----------------------------------------------- ============== ============= ============== ============== ==============
Offering price per share-Investment C
Shares* $ 12.24 $ 9.98 $ 9.85 $ 12.33** $ 10.35
- ----------------------------------------------- ============== ============= ============== ============== ==============
Maximum Sales Charge 4.50% 4.50% 4.50% 4.50% 4.50%
- ----------------------------------------------- ============== ============= ============== ============== ==============
Maximum Offering Price
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to nearest cent)
per share (Investment A Shares) $ 12.83 $ 10.45 $ 10.34 $ 12.91 $ 10.85
- ----------------------------------------------- ============== ============= ============= ============== ==============
</TABLE>
*Redemption price per share varies by length of time shares are held.
**As of January 31, 1998, no shares or assets existed in the Municipal Bond Fund
Investment C Shares. The Municipal Bond Fund Investment C Shares continue to
be available for investment with an offering price equal to the Municipal Bond
Fund Investment A Shares.
(See Notes which are an integral part of the Financial Statements)
82
<PAGE>
Fountain Square Funds
Statements of Assets and Liabilities
January 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Commercial Government U.S. Treasury
Paper Cash Reserves Obligations
Fund Fund Fund
------------- ------------- --------------
<S> <C> <C> <C>
Assets:
- -----------------------------------------------------------------
Investments, at value (Amortized cost $354,512,663;
$326,066,783; and $160,015,144, respectively) $354,512,663 $326,066,783 $160,015,144
- -----------------------------------------------------------------
Repurchase agreements (Amortized cost $90,724,000; $0;
and $504,259,000, respectively) 90,724,000 - 504,259,000
- ----------------------------------------------------------------- ------------- -------------- --------------
Total Investments 445,236,663 326,066,783 664,274,144
- -----------------------------------------------------------------
Cash 94 3,517 746
- -----------------------------------------------------------------
Interest receivable 32,677 691,560 3,033,211
- -----------------------------------------------------------------
Prepaid expenses and other assets 11,452 8,521 15,038
- ----------------------------------------------------------------- ------------- -------------- --------------
Total Assets 445,280,886 326,770,381 667,323,139
- ----------------------------------------------------------------- ------------- -------------- --------------
Liabilities:
- -----------------------------------------------------------------
Dividends payable 2,100,887 1,388,282 2,951,813
- -----------------------------------------------------------------
Accrued expenses and other payables:
- -----------------------------------------------------------------
Investment advisory fees 153,501 103,993 146,939
- -----------------------------------------------------------------
Administration fees 33,444 22,677 46,785
- -----------------------------------------------------------------
Accounting and transfer agent fees 10,737 7,200 11,962
- -----------------------------------------------------------------
Custodian fees 2,541 1,688 5,200
- -----------------------------------------------------------------
Legal and audit fees 5,519 5,519 5,519
- -----------------------------------------------------------------
Printing fees 5,322 3,908 8,016
- -----------------------------------------------------------------
Registration & Filing 19,901 15,320 37,647
- -----------------------------------------------------------------
Other 18,425 13,749 21,322
- ----------------------------------------------------------------- ------------- -------------- --------------
Total Liabilities 2,350,277 1,562,336 3,235,203
- ----------------------------------------------------------------- ------------- -------------- --------------
Net Assets:
- -----------------------------------------------------------------
Paid-in capital 442,930,862 325,206,515 664,082,585
- -----------------------------------------------------------------
Accumulated net realized gains (losses)
on investment transactions (190) 1,530 274
- -----------------------------------------------------------------
Undistributed net investment income (loss) (63) - 5,077
- ----------------------------------------------------------------- ------------- -------------- --------------
Net Assets $442,930,609 $325,208,045 $664,087,936
- ----------------------------------------------------------------- ============= ============== ==============
Net Assets
- -----------------------------------------------------------------
Trust Shares $411,499,855 $190,194,107 $664,087,936
- -----------------------------------------------------------------
Investment Shares 31,430,754 135,013,938 -
- ----------------------------------------------------------------- ------------- -------------- --------------
Total $442,930,609 $325,208,045 $664,087,936
- ----------------------------------------------------------------- ============= ============== ==============
Outstanding units of beneficial interest (shares)
- -----------------------------------------------------------------
Trust Shares 411,500,345 190,193,410 664,087,935
- -----------------------------------------------------------------
Investment Shares 31,430,789 135,013,100 -
- ----------------------------------------------------------------- ------------- -------------- --------------
Total 442,931,134 325,206,510 664,087,935
- ----------------------------------------------------------------- ============= ============== ==============
Net asset value
- -----------------------------------------------------------------
Offering and redemption price per share - Trust Shares $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------- ============= ============== ==============
Offering and redemption price per share - Investor Shares $ 1.00 $ 1.00 $ -
- ----------------------------------------------------------------- ============= ============== ==============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
83
<PAGE>
Fountain Square Funds
Statements of Operations
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quality Equity International
Growth Income Balanced Mid Cap Equity
Fund Fund Fund Fund Fund
-------------- ------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- -----------------------------------------------
Interest income $ 336,835 $ 61,435 $ 1,595,468 $ 686,578 --
- -----------------------------------------------
Dividend income 2,073,318 1,524,699 369,581 190,459 1,033,319
- -----------------------------------------------
Foreign tax withholding -- -- -- -- (70,228)
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Total Income 2,410,153 1,586,134 1,965,049 877,037 963,091
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
EXPENSES:
- -----------------------------------------------
Investment advisory fees 1,736,542 495,513 539,985 810,181 708,647
- -----------------------------------------------
Administrative fees 398,677 113,759 123,985 185,987 130,070
- -----------------------------------------------
Distribution and service fees - Investment A 750,901 216,366 232,887 353,135 247,604
- -----------------------------------------------
Distribution and service fees - Investment C 18,438 889 7,091 2,515 886
- -----------------------------------------------
Shareholder Servicing - Investment C 6,146 296 2,364 838 295
- -----------------------------------------------
Organization expense 434 753 409 386 4,394
- -----------------------------------------------
Custodian fees 4,056 3,357 4,551 5,712 81,025
- -----------------------------------------------
Portfolio accounting fees 21,632 20,162 17,664 20,442 54,260
- -----------------------------------------------
Transfer and dividend disbursing agent fees
and expenses 15,419 11,183 9,925 11,844 18,942
- -----------------------------------------------
Directors'/Trustees' fees 1,170 1,598 1,112 1,126 1,602
- -----------------------------------------------
Audit fees 4,750 4,750 4,750 4,750 5,500
- -----------------------------------------------
Legal fees 3,972 3,972 3,972 3,972 3,972
- -----------------------------------------------
Fund share registration costs 11,994 9,368 8,276 6,858 5,686
- -----------------------------------------------
Printing and postage expense 10,401 7,853 5,913 5,185 4,157
- -----------------------------------------------
Insurance expense 1,710 1,071 896 1,303 851
- -----------------------------------------------
Other -- -- -- -- --
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Total Expenses 2,986,242 890,890 963,780 1,414,234 1,267,891
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Less fees voluntarily reduced (800,461) (270,205) (282,686) (399,850) (247,899)
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Net Expenses 2,185,781 620,685 681,094 1,014,384 1,019,992
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Net Investment Income (Loss) 224,372 965,449 1,283,955 (137,347) (56,901)
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Realized and Unrealized Gains (Losses) from
Investments and Foreign Currency Transactions:
- -----------------------------------------------
Net realized gains (losses) from investments
and foreign currency transactions 16,957,836 9,303,038 6,283,858 16,258,920 (4,241,056)
- -----------------------------------------------
Net change in unrealized appreciation
(depreciation) from investments and
translation of assets and liabilities in
foreign securities 2,286,497 4,608,437 (2,785,041) (2,520,083) (58,617)
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Net realized and unrealized gains (losses)
from investments and foreign currency 19,244,333 13,911,475 3,498,817 13,738,837 (4,299,673)
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Change in net assets resulting
from operations $19,468,705 $14,876,924 $ 4,782,772 $13,601,490 $ (4,356,574)
- ----------------------------------------------- ============== ============= ============= ============== ==============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
84
<PAGE>
Fountain Square Funds
Statements of Operations
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Ohio
Bond Fund Quality Government Municipal Tax Free
For Bond Securities Bond Bond
Income Fund Fund Fund Fund
-------------- ------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- -----------------------------------------------
Interest income $ 5,269,549 $ 3,000,555 $ 1,278,859 $ 2,547,734 $ 4,195,998
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Total Income 5,269,549 3,000,555 1,278,859 2,547,734 4,195,998
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
EXPENSES:
- -----------------------------------------------
Investment advisory fees 450,874 259,002 115,697 283,451 473,138
- -----------------------------------------------
Administrative fees 150,556 86,491 38,630 94,649 158,022
- -----------------------------------------------
Distribution and service fees - Investment A 286,751 164,450 73,510 180,364 300,518
- -----------------------------------------------
Distribution and service fees - Investment C 291 801 264 20 1,332
- -----------------------------------------------
Shareholder Servicing - Investment C 97 267 88 7 444
- -----------------------------------------------
Organizational Costs 909 381 338 740 2,993
- -----------------------------------------------
Custodian fees 4,404 4,205 3,084 4,018 5,947
- -----------------------------------------------
Portfolio accounting fees 21,873 17,607 16,756 21,565 19,800
- -----------------------------------------------
Transfer and dividend disbursing agent fees
and expenses 12,376 10,741 7,005 10,970 9,882
- -----------------------------------------------
Directors'/Trustees' fees 1,605 1,192 1,094 1,594 1,606
- -----------------------------------------------
Audit fees 4,750 4,750 4,750 4,750 4,750
- -----------------------------------------------
Legal fees 3,972 3,972 3,972 3,972 3,972
- -----------------------------------------------
Fund share registration costs 9,743 4,885 2,500 8,380 7,008
- -----------------------------------------------
Printing and postage expense 7,323 2,828 1,337 7,077 7,155
- -----------------------------------------------
Insurance expense 2,882 1,103 725 1,869 2,373
- -----------------------------------------------
Other -- -- -- -- --
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Total Expenses 958,406 562,675 269,750 623,426 998,940
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Less fees voluntarily reduced (344,028) (211,808) (111,462) (231,907) (350,414)
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Net Expenses 614,378 350,867 158,288 391,519 648,526
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Net Investment Income (Loss) 4,655,171 2,649,688 1,120,571 2,156,215 3,547,472
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Realized and Unrealized Gains (Losses)
from Investments:
- -----------------------------------------------
Net realized gains (losses) from investments 1,483,393 1,783,014 270,705 959,173 179,236
- -----------------------------------------------
Net change in unrealized appreciation
(depreciation) from investments 243,776 (474,690) 288,822 (155,963) 1,297,785
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Net realized/unrealized gains (losses)
from investments 1,727,169 1,308,324 559,527 803,210 1,477,021
- ----------------------------------------------- -------------- ------------- ------------- -------------- --------------
Change in net assets resulting
from operations $ 6,382,340 $ 3,958,012 $ 1,680,098 $ 2,959,425 $ 5,024,493
- ----------------------------------------------- ============== ============= ============= ============== ==============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
85
<PAGE>
Fountain Square Funds
Statements of Operations
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Commercial Government U.S. Treasury
Paper Cash Reserves Obligations
Fund Fund Fund
------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME:
- -----------------------------------------------------------------
Interest income $12,430,900 $ 8,339,699 $17,121,722
- ----------------------------------------------------------------- ------------- -------------- --------------
Total Income 12,430,900 8,339,699 17,121,722
- ----------------------------------------------------------------- ------------- -------------- --------------
EXPENSES:
- -----------------------------------------------------------------
Investment advisory fees 875,452 599,958 1,221,563
- -----------------------------------------------------------------
Administrative fees 401,839 275,403 560,632
- -----------------------------------------------------------------
Distributions fees - Investment Shares 51,202 220,306 --
- -----------------------------------------------------------------
Portfolio accounting fees 64,158 43,712 69,036
- -----------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 13,032 6,868 11,158
- -----------------------------------------------------------------
Directors'/Trustees' fees 1,658 1,628 1,686
- -----------------------------------------------------------------
Audit fees 4,750 4,750 4,750
- -----------------------------------------------------------------
Custodian 21,886 7,534 19,595
- -----------------------------------------------------------------
Legal fees 3,972 3,972 3,972
- -----------------------------------------------------------------
Fund share registration costs 12,479 11,518 12,538
- -----------------------------------------------------------------
Printing and postage expense 15,941 10,486 11,312
- -----------------------------------------------------------------
Insurance expense 2,554 2,337 3,658
- -----------------------------------------------------------------
Other 4,888 157 233
- ----------------------------------------------------------------- ------------- -------------- --------------
Total Expenses 1,473,811 1,188,629 1,920,133
- ----------------------------------------------------------------- ------------- -------------- --------------
Less expenses voluntarily reduced (335,721) (415,029) (732,895)
- ----------------------------------------------------------------- ------------- -------------- --------------
Net Expenses 1,138,090 773,600 1,187,238
- ----------------------------------------------------------------- ------------- -------------- --------------
Net Investment Income (Loss) 11,292,810 7,566,099 15,934,484
- ----------------------------------------------------------------- ------------- -------------- --------------
Realized Losses from Investments:
- -----------------------------------------------------------------
Net realized gains (losses) from investment transactions (84) 961 (47,143)
- ----------------------------------------------------------------- ------------- -------------- --------------
Change in net assets resulting
from operations $11,292,726 $ 7,567,060 $15,887,341
- ----------------------------------------------------------------- ============= ============== ==============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
86
<PAGE>
Fountain Square Funds
Statements of Changes in Net Assets
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quality Growth Fund Equity Income Fund
-------------------------------- --------------------------------
Period Ended Year Ended Period Ended Year Ended
January 31, July 31, January 31, July 31,
1998 1997 1998 1997
-------------------------------- --------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
- ------------------------------------------------
Operations--
- ------------------------------------------------
Net investment income (loss) $ 224,372 $ 1,308,380 $ 965,449 $ 1,291,704
- ------------------------------------------------
Net realized gains (losses) on investment
transactions 16,957,836 29,035,436 9,303,038 9,529,112
- ------------------------------------------------
Change in unrealized appreciation (depreciation)
of investments 2,286,497 94,222,664 4,608,437 10,892,457
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets resulting from
operations 19,468,705 124,566,480 14,876,924 21,713,273
- ------------------------------------------------ ------------- ------------- ------------- -------------
Distributions to Shareholders--
- ------------------------------------------------
Dividends to shareholders from net
investment income
- ------------------------------------------------
Investment A Shares (240,346) (1,442,974) (1,073,621) (1,182,123)
- ------------------------------------------------
Investment C Shares -- -- (1,050) (359)
- ------------------------------------------------
Distributions in excess of net investment income
- ------------------------------------------------
Investment A Shares (200,825) -- (31,475) --
- ------------------------------------------------
Investment C Shares -- (175) (127) --
- ------------------------------------------------
Distributions to shareholders from net realized
gains on investment transactions
- ------------------------------------------------
Total -- -- -- --
- ------------------------------------------------
Investment A Shares (33,263,912) (7,460,310) (12,092,071) --
- ------------------------------------------------
Investment C Shares (424,302) (28,501) (29,030) --
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets from distributions to
shareholders (34,129,385) (8,931,960) (13,227,374) (1,182,482)
- ------------------------------------------------ ------------- ------------- ------------- -------------
Fund Share (Principal) Transactions--
- ------------------------------------------------
Proceeds from sale of shares 109,023,091 187,617,592** 4,846,158 106,178,839**
- ------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 33,912,940 6,311,183 12,144,963 6,820
- ------------------------------------------------
Cost of shares redeemed (59,152,624) (41,622,694) (6,161,706) (6,300,505)
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets from Fund
share transactions 83,783,407 152,306,081 10,829,415 99,885,154
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets 69,122,727 267,940,601 12,478,965 120,415,945
- ------------------------------------------------
Net Assets:
- ------------------------------------------------
Beginning of period 402,829,520 134,888,919 120,415,945 --
- ------------------------------------------------ ------------- ------------- ------------- -------------
End of period $ 471,952,247 $ 402,829,520 $ 132,894,910 $ 120,415,945
- ------------------------------------------------ ============= ============= ============= =============
</TABLE>
*Commencement of operations began January 27, 1997.
**Includes acquired appreciation from Trust conversion in fiscal year end
July 31, 1997.
(See Notes which are an integral part of the Financial Statements)
87
<PAGE>
Fountain Square Funds
Statements of Changes in Net Assets
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund Mid Cap Fund
------------------------------- -------------------------------
Period Ended Year Ended Period Ended Year Ended
January 31, July 31, January 31, July 31,
1998 1997 1998 1997
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
- --------------------------------------------------
Operations--
- --------------------------------------------------
Net investment income (loss) $ 1,283,955 $ 2,204,006 $ (137,347) $ 135,410
- --------------------------------------------------
Net realized gains (losses) on investment
transactions 6,283,858 8,348,906 16,258,920 12,065,319
- --------------------------------------------------
Change in unrealized appreciation (depreciation)
of investments (2,785,041) 24,552,465 (2,520,083) 40,393,443
- -------------------------------------------------- ------------- ------------- ------------- -------------
Change in net assets resulting from
operations 4,782,772 35,105,377 13,601,490 52,594,172
- -------------------------------------------------- ------------- ------------- ------------- -------------
Distributions to Shareholders--
- --------------------------------------------------
Dividends to shareholders from net investment
income
- --------------------------------------------------
Investment A Shares (1,307,956) (2,116,372) -- (136,536)
- --------------------------------------------------
Investment C Shares (12,145) (6,021) -- --
- --------------------------------------------------
Distributions in excess of net investment income
- --------------------------------------------------
Investment A Shares -- -- -- (216,171)
- --------------------------------------------------
Investment C Shares -- -- -- --
- --------------------------------------------------
Distributions to shareholders from net realized
gains on investment transactions
- --------------------------------------------------
Total -- -- -- --
- --------------------------------------------------
Investment A Shares (11,107,647) (3,941,823) (19,805,042) (6,692,368)
- --------------------------------------------------
Investment C Shares (183,396) (11,819) (76,645) (22,049)
- -------------------------------------------------- ------------- ------------- ------------- -------------
Change in net assets from distributions to
shareholders (12,611,144) (6,076,035) (19,881,687) (7,067,124)
- -------------------------------------------------- ------------- ------------- ------------- -------------
Fund Share (Principal) Transactions--
- --------------------------------------------------
Proceeds from sale of shares 30,158,803 27,076,472 27,344,792 84,402,432**
- --------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 12,515,192 5,683,213 19,881,687 5,620,179
- --------------------------------------------------
Cost of shares redeemed (6,860,217) (30,940,765) (14,815,511) (21,937,233)
- -------------------------------------------------- ------------- ------------- ------------- -------------
Change in net assets from Fund
share transactions 35,813,778 1,818,920 32,410,968 68,085,378
- -------------------------------------------------- ------------- ------------- ------------- -------------
Change in net assets 27,985,406 30,848,262 26,130,771 113,612,426
- --------------------------------------------------
Net Assets:
- --------------------------------------------------
Beginning of period 123,920,751 93,072,489 186,504,452 72,892,026
- -------------------------------------------------- ------------- ------------- ------------- -------------
End of period $ 151,906,157 $ 123,920,751 $ 212,635,223 $ 186,504,452
- -------------------------------------------------- ============= ============= ============= =============
</TABLE>
*Commencement of operations began January 27, 1997.
**Includes acquired appreciation from Trust conversion in fiscal year end
July 31, 1997.
(See Notes which are an integral part of the Financial Statements)
88
<PAGE>
Fountain Square Funds
Statements of Changes in Net Assets
For the period ended January 31, 1998
- --------------------------------------------------------------------------------
(Unaudited)
International Equity Fund
------------------------------
Period Ended Year Ended
January 31, July 31,
1998 1997
------------------------------
Increase (Decrease) in Net Assets:
- ------------------------------------------------
Operations--
- ------------------------------------------------
Net investment income (loss) $ (56,901) $ 528,879
- ------------------------------------------------
Net realized gains (losses) on investment
transactions (4,241,056) 9,857,198
- ------------------------------------------------
Change in unrealized appreciation
(depreciation) of investments (58,617) 16,764,042
- ------------------------------------------------ ------------ ------------
Change in net assets resulting from
operations (4,356,574) 27,150,119
- ------------------------------------------------ ------------ ------------
Distributions to Shareholders--
- ------------------------------------------------
Dividends to shareholders from net
investment income
- ------------------------------------------------
Investment A Shares (3,462,890) (8,371,837)
- ------------------------------------------------
Investment C Shares (4,006) (3,431)
- ------------------------------------------------
Distributions in excess of net investment income
- ------------------------------------------------
Investment A Shares (3,865,091) (1,976,558)
- ------------------------------------------------
Investment C Shares (7,676) (2,141)
- ------------------------------------------------
Distributions to shareholders from net realized
gains on investment transactions
- ------------------------------------------------
Total -- --
- ------------------------------------------------
Investment A Shares (3,564,492) (694,681)
- ------------------------------------------------
Investment C Shares (6,302) (396)
- ------------------------------------------------ ------------ ------------
Change in net assets from distributions to
shareholders (10,910,457) (11,049,044)
- ------------------------------------------------ ------------ ------------
Fund Share (Principal) Transactions--
- ------------------------------------------------
Proceeds from sale of shares 6,076,869 32,814,823
- ------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 8,419,820 7,089,844
- ------------------------------------------------
Cost of shares redeemed (14,341,596) (24,474,153)
- ------------------------------------------------ ------------ ------------
Change in net assets from Fund
share transactions 155,093 15,430,514
- ------------------------------------------------ ------------ ------------
Change in net assets (15,111,938) 31,531,589
- ------------------------------------------------
Net Assets:
- ------------------------------------------------
Beginning of period 151,938,139 120,406,550
- ------------------------------------------------ ------------ ------------
End of period $136,826,201 $151,938,139
- ------------------------------------------------ ============ ============
*Commencement of operations began January 27, 1997.
**Includes acquired appreciation from Trust conversion in fiscal year end
July 31, 1997.
(See Notes which are an integral part of the Financial Statements)
89
<PAGE>
Fountain Square Funds
Statements of Changes in Net Assets
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Fund For Income Quality Bond Fund
------------------------------- -------------------------------
Period Ended Period Ended Period Ended Year Ended
January 31, July 31, January 31, July 31,
1998 1997* 1998 1997
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
- ------------------------------------------------
Operations--
- ------------------------------------------------
Net investment income (loss) $ 4,655,171 $ 4,537,787 $ 2,649,688 $ 5,023,612
- ------------------------------------------------
Net realized gains (losses) on investment
transactions 1,483,393 55,662 1,783,014 (492,997)
- ------------------------------------------------
Change in unrealized appreciation of investments 243,776 2,305,299 (474,690) 3,472,557
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets resulting from
operations 6,382,340 6,898,748 3,958,012 8,003,172
- ------------------------------------------------ ------------- ------------- ------------- -------------
Distributions to Shareholders--
- ------------------------------------------------
Dividends to shareholders from net
investment income
- ------------------------------------------------
Total - - - -
- ------------------------------------------------
Investment A Shares (4,823,293) (4,367,295) (2,704,999) (4,925,664)
- ------------------------------------------------
Investment C Shares (1,791) (417) (5,231) (9,427)
- ------------------------------------------------
Distributions in excess of net investment income
- ------------------------------------------------
Investment A Shares (6,628) - - -
- ------------------------------------------------
Investment C Shares (176) (162) (90) -
- ------------------------------------------------
Distributions to shareholders from net realized
gain on investment transactions
- ------------------------------------------------
Investment A Shares (687,835) - - -
- ------------------------------------------------
Investment C Shares (455) - - -
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets from distributions to
shareholders (5,520,178) (4,367,874) (2,710,320) (4,935,091)
- ------------------------------------------------ ------------- ------------- ------------- -------------
Fund Share (Principal) Transactions--
- ------------------------------------------------
Proceeds from sale of shares 21,118,842 161,008,922** 13,087,823 25,472,460
- ------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 784,738 31,616 1,555,874 2,847,103
- ------------------------------------------------
Cost of shares redeemed (9,095,813) (6,457,011) (7,847,603) (22,979,053)
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets from Fund
share transactions 12,807,767 154,583,527 6,796,094 5,340,510
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets 13,669,929 157,114,401 8,043,786 8,408,591
- ------------------------------------------------
Net Assets:
- ------------------------------------------------
Beginning of period 157,114,401 - 91,992,424 83,583,833
- ------------------------------------------------ ------------- ------------- ------------- -------------
End of period $ 170,784,330 $ 157,114,401 $ 100,036,210 $ 91,992,424
- ------------------------------------------------ ============= ============= ============= =============
</TABLE>
*Commencement of operations of the Fund began January 27, 1997.
**Includes acquired appreciation from Trust conversion in fiscal year end July
31, 1997.
(See Notes which are an integral part of the Financial Statements)
90
<PAGE>
Fountain Square Funds
Statements of Changes in Net Assets
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Securities Municipal Bond Fund
------------------------------- -------------------------------
Period Ended Year Ended Period Ended Period Ended
January 31, July 31, January 31, July 31,
1998 1997 1998 1997*
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
- ------------------------------------------------
Operations--
- ------------------------------------------------
Net investment income (loss) $ 1,120,571 $ 2,363,635 $ 2,156,215 $ 2,288,296
- ------------------------------------------------
Net realized gains (losses) on investment
transactions 270,705 384,260 959,173 514,915
- ------------------------------------------------
Change in unrealized appreciation of investments 288,822 400,692 (155,963) 2,083,197
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets resulting from
operations 1,680,098 3,148,587 2,959,425 4,886,408
- ------------------------------------------------ ------------- ------------- ------------- -------------
Distributions to Shareholders--
- ------------------------------------------------
Dividends to shareholders from net
investment income
- ------------------------------------------------
Total - - - -
- ------------------------------------------------
Investment A Shares (1,148,166) (2,321,676) (2,220,318) (2,217,602)
- ------------------------------------------------
Investment C Shares (1,574) (3,373) - (999)
- ------------------------------------------------
Distributions in excess of net investment income
- ------------------------------------------------
Investment A Shares (16,681) - - -
- ------------------------------------------------
Investment C Shares (104) - (79) (377)
- ------------------------------------------------
Distributions to shareholders from net realized
gain on investment transactions
- ------------------------------------------------
Investment A Shares - - (780,467) -
- ------------------------------------------------
Investment C Shares - - (9) -
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets from distributions to
shareholders (1,166,525) (2,325,049) (3,000,873) (2,218,978)
- ------------------------------------------------ ------------- ------------- ------------- -------------
Fund Share (Principal) Transactions--
- ------------------------------------------------
Proceeds from sale of shares 3,902,965 25,917,379** 17,197,545 111,498,655**
- ------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 558,419 1,239,373 788,140 5,290
- ------------------------------------------------
Cost of shares redeemed (5,452,626) (16,293,089) (13,253,779) (12,544,040)
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets from Fund
share transactions (991,242) 10,863,663 4,731,906 98,959,905
- ------------------------------------------------ ------------- ------------- ------------- -------------
Change in net assets (477,669) 11,687,201 4,690,458 101,627,335
- ------------------------------------------------
Net Assets:
- ------------------------------------------------
Beginning of period 42,489,627 30,802,426 101,627,335 -
- ------------------------------------------------ ------------- ------------- ------------- -------------
End of period $ 42,011,958 $ 42,489,627 $ 106,317,793 $ 101,627,335
- ------------------------------------------------ ============= ============= ============= =============
</TABLE>
*Commencement of operations of the Fund began January 27, 1997.
**Includes acquired appreciation from Trust conversion in fiscal year end July
31, 1997.
(See Notes which are an integral part of the Financial Statements)
91
<PAGE>
Fountain Square Funds
Statements of Changes in Net Assets
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ohio Tax Free Bond Fund
-------------------------------
Period Ended Year Ended
January 31, July 31,
1998 1997
-------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
- ------------------------------------------------
Operations--
- ------------------------------------------------
Net investment income (loss) $ 3,547,472 $ 6,323,718
- ------------------------------------------------
Net realized gains (losses) on investment
transactions 179,236 959,916
- ------------------------------------------------
Change in unrealized appreciation of investments 1,297,785 4,314,862
- ------------------------------------------------ ------------- -------------
Change in net assets resulting from
operations 5,024,493 11,598,496
- ------------------------------------------------ ------------- -------------
Distributions to Shareholders--
- ------------------------------------------------
Dividends to shareholders from net
investment income
- ------------------------------------------------
Total - -
- ------------------------------------------------
Investment A Shares (3,555,828) (6,309,126)
- ------------------------------------------------
Investment C Shares (5,780) (2,374)
- ------------------------------------------------
Distributions in excess of net investment income
- ------------------------------------------------
Investment A Shares (68,361) -
- ------------------------------------------------
Investment C Shares (477) (185)
- ------------------------------------------------
Distributions to shareholders from net realized
gain on investment transactions
- ------------------------------------------------
Investment A Shares (664,105) -
- ------------------------------------------------
Investment C Shares (1,606) -
- ------------------------------------------------ ------------- -------------
Change in net assets from distributions to
shareholders (4,296,157) (6,311,685)
- ------------------------------------------------ ------------- -------------
Fund Share (Principal) Transactions--
- ------------------------------------------------
Proceeds from sale of shares 19,233,558 158,886,252**
- ------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 1,160,044 809,532
- ------------------------------------------------
Cost of shares redeemed (9,195,695) (31,436,522)
- ------------------------------------------------ ------------- -------------
Change in net assets from Fund
share transactions 11,197,907 128,259,262
- ------------------------------------------------ ------------- -------------
Change in net assets 11,926,243 133,546,073
- ------------------------------------------------
Net Assets:
- ------------------------------------------------
Beginning of period 169,047,566 35,501,493
- ------------------------------------------------ ------------- -------------
End of period $ 180,973,809 $ 169,047,566
- ------------------------------------------------ ============= =============
</TABLE>
*Commencement of operations of the Fund began January 27, 1997.
**Includes acquired appreciation from Trust conversion in fiscal year end July
31, 1997.
(See Notes which are an integral part of the Financial Statements)
92
<PAGE>
Fountain Square Funds
Statements of Changes in Net Assets
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Commercial Paper Fund Government Cash Reserves Fund
--------------------------------- --------------------------------------
Period Ended Year Ended Period Ended Year Ended
January 31, July 31, January 31, July 31,
1998 1997 1998 1997
--------------------------------- --------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
- ------------------------------------------------
Operations--
- ------------------------------------------------
Net investment income $ 11,292,810 $ 16,961,155 $ 7,566,099 $ 12,079,572
- ------------------------------------------------
Net realized losses on investment transactions (84) (101) 961 569
- ------------------------------------------------
Change in unrealized appreciation (depreciation)
of investments - - - -
- ------------------------------------------------ --------------- --------------- --------------- ---------------
Change in net assets resulting from
operations 11,292,726 16,961,054 7,567,060 12,080,141
- ------------------------------------------------ --------------- --------------- --------------- ---------------
Distributions to Shareholders--
- ------------------------------------------------
Dividends to shareholders from net
investment income:
- ------------------------------------------------
Trust Shares (10,538,246) (15,645,249) (4,390,813) (7,338,297)
- ------------------------------------------------
Investment Shares (754,564) (1,315,906) (3,175,286) (4,741,275)
- ------------------------------------------------ --------------- --------------- --------------- ---------------
Change in net assets from distributions
to shareholders (11,292,810) (16,961,155) (7,566,099) (12,079,572)
- ------------------------------------------------ --------------- --------------- --------------- ---------------
Fund Share (Principal) Transactions--
- ------------------------------------------------
Proceeds from sale of shares 717,130,375 1,395,843,822 209,156,497 390,115,033
- ------------------------------------------------
Net asset value of shares issued to
shareholders in payment of dividends
declared 285,760 784,154 - -
- ------------------------------------------------
Cost of shares redeemed (649,751,360) (1,341,524,057) (157,070,793) (318,164,002)
- ------------------------------------------------ --------------- --------------- --------------- ---------------
Change in net assets from Fund
share transactions 67,664,775 55,103,919 52,085,704 71,951,031
- ------------------------------------------------ --------------- --------------- --------------- ---------------
Change in net assets 67,664,691 55,103,818 52,086,665 71,951,600
- ------------------------------------------------
Net Assets:
- ------------------------------------------------
Beginning of period 375,265,918 320,162,100 273,121,380 201,169,780
- ------------------------------------------------ --------------- --------------- --------------- ---------------
End of period $ 442,930,609 $ 375,265,918 $ 325,208,045 $ 273,121,380
- ------------------------------------------------ =============== =============== =============== ===============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
93
<PAGE>
Fountain Square Funds
Statements of Changes in Net Assets
For the period ended January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Treasury Obligations Fund
-----------------------------------
Period Ended Year Ended
January 31, July 31,
1998 1997
-----------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
- -----------------------------------------------
Operations--
- -----------------------------------------------
Net investment income $ 15,934,484 $ 24,602,016
- -----------------------------------------------
Net realized losses on investment transactions (47,143) 46,027
- -----------------------------------------------
Change in unrealized appreciation (depreciation)
of investments - -
- ----------------------------------------------- --------------- ---------------
Change in net assets resulting from
operations 15,887,341 24,648,043
- ----------------------------------------------- --------------- ---------------
Distributions to Shareholders--
- -----------------------------------------------
Dividends to shareholders from net
investment income:
- -----------------------------------------------
Trust Shares (15,934,481) (24,602,021)
- -----------------------------------------------
Investment Shares - -
- ----------------------------------------------- --------------- ---------------
Change in net assets from distributions
to shareholders (15,934,481) (24,602,021)
- ----------------------------------------------- --------------- ---------------
Fund Share (Principal) Transactions--
- -----------------------------------------------
Proceeds from sale of shares 848,097,301 1,825,126,116
- -----------------------------------------------
Net asset value of shares issued to
shareholders in payment of dividends
declared 3,258,711 5,305,436
- -----------------------------------------------
Cost of shares redeemed (726,308,391) (1,780,618,543)
- ----------------------------------------------- --------------- ---------------
Change in net assets from Fund
share transactions 125,047,621 49,813,009
- ----------------------------------------------- --------------- ---------------
Change in net assets 125,000,481 49,859,031
- -----------------------------------------------
Net Assets:
- -----------------------------------------------
Beginning of period 539,087,455 489,228,424
- ----------------------------------------------- --------------- ---------------
End of period $ 664,087,936 $ 539,087,455
- ----------------------------------------------- =============== ===============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
94
<PAGE>
Fountain Square Funds
Notes to Financial Statements
January 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
(1) Organization
Fountain Square Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. At January 31, 1998, the Trust consisted of fourteen separate
investment portfolios. Fountain Square Pinnacle Fund, however, had not yet
commenced operations as of that date.
The accompanying financial statements relate to the following Funds:
Portfolio Name
- --------------------------------------------------------------------------------
Fountain Square Quality Growth Fund ("Quality Growth Fund")
Fountain Square Equity Income Fund ("Equity Income Fund")
Fountain Square Balanced Fund ("Balanced Fund")
Fountain Square Mid Cap Fund ("Mid Cap Fund")
Fountain Square International Equity Fund ("International Equity Fund")
Fountain Square Bond Fund For Income ("Bond Fund For Income")
Fountain Square Quality Bond Fund ("Quality Bond Fund")
Fountain Square U.S. Government Securities Fund ("Government Securities Fund")
Fountain Square Municipal Bond Fund ("Municipal Bond Fund")
Fountain Square Ohio Tax Free Bond Fund ("Ohio Tax Free Fund")
Fountain Square Commercial Paper ("Commercial Paper Fund")
Fountain Square Government Cash Reserves ("Government Cash Reserves Fund")
Fountain Square U.S. Treasury Obligations ("Treasury Obligations Fund")
The non-money market Funds each issue two classes of shares: Investment A Shares
and Investment C Shares. Fountain Square Commercial Paper Fund and Fountain
Square Government Cash Reserves Fund each issue Investment Shares and Trust
Shares. Fountain Square U.S. Treasury Obligations Fund issues Trust Shares only.
The Investment A Shares are subject to initial sales charges imposed at the time
of purchase, in accordance with the Funds' prospectuses. Certain redemptions of
Investment C Shares made within one year of purchase are subject to contingent
deferred sales charges in accordance with the Funds' prospectuses. Each class of
shares for each Fund has identical rights and privileges, except with respect to
voting rights on matters affecting a single class of shares and the exchange
privileges of each class of shares. As of January 8, 1998, all shares were
redeemed from the Municipal Bond Fund Investment C Shares. Municipal Bond Fund
Investment C Shares continue to be available for investment with an offering
price equal to Municipal Bond Fund Investment A Shares. As of the date of this
report there are no assets or shareholders in the Municipal Bond Fund Investment
C Shares.
(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. The
preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of income and expenses
for the period. Actual results could differ from those estimates.
A. Securities Valuations--Investments in equity securities are determined on the
basis of the mean between the latest available bid and asked prices in the
principal market (last sales price on a national securities exchange). For
unlisted securities, value is determine on the basis of the latest bid prices.
95
<PAGE>
Fountain Square Funds
- --------------------------------------------------------------------------------
Investments in other open-end investment companies are valued at net asset
value. Bonds and other fixed income securities are valued at prices provided by
an independent pricing service. Value of all other securities is determined at
fair value in good faith in accordance with procedures adopted by the Board of
Trustees.
B. Repurchase Agreements--Each of the Funds will only enter into repurchase
agreements with banks and other recognized financial institutions, such as
broker/dealers, which are deemed by its Advisor to be creditworthy pursuant to
guidelines and/or standards reviewed or established by the Board of Trustees. It
is the policy of the Funds to require the custodian or sub-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. 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. Securities Transactions and Related Income--Securities transactions are
accounted for on the date the security is purchased or sold (trade date).
Interest income is recognized on the accrual basis and includes, where
applicable, the pro rata amortization of premium or discount. Dividend income is
recorded on the ex-dividend date. Gains or losses realized on sales of
securities are determined by comparing the identified cost of the security lot
sold with the net sales proceeds.
D. Foreign Currency Translation--The accounting records of the International
Equity Fund are maintained in U.S. dollars. All assets and liabilities
denominated in foreign currencies 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 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 International Equity 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 gains or losses from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, 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 International Equity 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. Forward Commitments--The International Equity Fund may enter into forward
commitments for forward foreign currency exchange contracts which are based upon
financial indices at an exchange rate at a future date. Risks may arise upon
entering into 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.
At January 31, 1998, the International Equity Fund had outstanding forward
foreign currency exchange contracts as set forth below.
96
<PAGE>
Fountain Square Funds
- --------------------------------------------------------------------------------
Contracts Unrealized
Delivery To Deliver In Exchange Appreciation
Date (Local Currency) For (Depreciation)
- -------------------------------------------------------------------------------
Australian Dollar
Long Contracts
2/12/98 1,930,091 1,272,992 51,454
Short Contracts
2/12/98 1,930,091 1,360,000 35,554
British Sterling Pound
Long Contracts
2/19/98 2,756,368 4,642,000 (142,036)
Short Contracts
2/19/98 1,387,632 2,300,000 34,594
French Franc
Long Contracts
3/16/98 12,625,676 2,126,000 (62,438)
4/28/98 6,527,290 1,078,000 (8,573)
Short Contracts
3/16/98 13,434,851 2,275,000 79,184
4/28/98 17,567,672 2,896,000 17,722
5/11/98 6,073,122 1,002,000 6,308
German Deutsche Mark
Long Contracts
3/16/98 2,955,454 1,631,000 (11,578)
Short Contracts
3/16/98 4,946,185 2,796,000 85,770
4/14/98 2,118,051 1,168,000 5,512
5/14/98 2,087,765 1,155,997 8,294
Italian Lira
Long Contracts
2/19/98 3,064,366,200 1,810,000 (112,518)
4/21/98 1,668,746,000 932,000 (8,901)
5/7/98 2,779,749,240 1,549,800 (12,290)
Short Contracts
2/19/98 1,532,183,100 897,848 49,107
4/21/98 1,463,283,840 816,000 6,557
5/4/98 1,783,139,500 995,000 8,738
5/7/98 7,085,922,450 3,931,308 11,907
Japanese Yen
Long Contracts
2/5/98 2,293,487,000 18,462,300 (365,329)
2/26/98 332,263,664 2,584,689 42,872
3/16/98 4,185,000 33,453 (275)
4/20/98 124,200,337 1,002,343 (12,479)
Short Contracts
2/5/98 2,293,487,000 19,320,000 1,223,034
2/26/98 476,936,624 3,866,351 94,705
3/16/98 4,185,000 33,593 415
4/20/98 870,868,828 6,906,400 (34,341)
97
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- --------------------------------------------------------------------------------
Contracts Unrealized
Delivery To Deliver In Exchange Appreciation
Date (Local Currency) For (Depreciation)
- --------------------------------------------------------------------------------
Malasian Ringgit
Long Contracts
2/5/98 2,896,250 640,763 51,959
5/4/98 334,500 75,000 5,018
Short Contracts
5/4/98 2,896,000 633,698 (59,075)
Netherland Guilder
Long Contracts
2/19/98 1,809,984 939,653 (60,757)
Short Contracts
2/19/98 1,067,935 550,000 31,430
5/11/98 832,245 409,000 3,147
Singapore Dollar
Long Contracts
3/5/98 1,680,748 1,054,686 (75,924)
3/23/98 410,601 237,068 1,441
7/7/98 329,122 178,000 11,113
Short Contracts
3/5/98 1,680,748 1,038,140 59,377
3/23/98 410,601 249,000 10,491
7/7/98 1,823,670 1,035,000 (12,878)
Spanish Peseta
Long Contracts
2/12/98 94,651,900 652,500 (42,162)
3/18/98 92,340,000 600,000 (4,798)
4/21/98 91,938,000 597,000 (3,877)
5/7/98 6,033,300 39,000 (60)
Short Contracts
2/12/98 94,651,900 650,000 39,661
3/18/98 194,494,440 1,288,000 34,335
4/21/98 73,041,978 474,000 2,782
5/4/98 88,992,926 578,000 3,680
5/7/98 93,780,296 608,000 2,720
Swedish Krona
Long Contracts
2/19/98 21,240,565 2,764,464 (148,884)
Short Contracts
2/19/98 21,240,565 2,830,000 214,420
---------
Net Unrealized Appreciation/(Depreciation) of Forward Commitments $1,054,128
---------
F. Foreign Currency Commitments--The International Equity Fund may enter into
foreign currency commitments for the delayed delivery of securities of 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 form unanticipated movements in security prices or foreign
exchange
98
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- --------------------------------------------------------------------------------
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.
G. Option Contracts--The Quality Growth Fund, Balanced Fund, and International
Equity Fund may write or purchase option contracts. A written option obligates a
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 Funds had
no written options outstanding at January 31, 1998.
H. 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
valued daily and begin earning interest on the settlement date.
I. Dividends to Shareholders--Dividends from net investment income are declared
and paid monthly for the Equity Income Fund, the Bond Fund For Income, the
Quality Bond Fund, Government Securities Fund, the Municipal Bond Fund, and the
Ohio Tax Free Fund. Dividends from net investment income are declared and paid
quarterly for the Quality Growth Fund, the Mid Cap Fund and the Balanced Fund.
Dividends from net investment income are declared and paid annually for
International Equity Fund. Distributable net realized gains, if any, are
declared and distributed at least annually.
Dividends from net investment income and from net realized capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments for mortgage-backed securities, foreign currency
transactions, expiring capital loss carryforwards and deferrals of certain
losses.
J. Federal Taxes--It is the Funds' policy to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year substantially all of their income.
Accordingly, no provision for federal income tax is necessary. However, federal
taxes may be imposed on the International Equity 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 International
Equity Fund's understanding of the applicable country's tax rules and rates.
K. 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.
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- --------------------------------------------------------------------------------
(3) Shares of Beneficial Interest
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Quality Growth Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- ----------------------
Shares Amount Shares Amount
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 5,569,855 $105,861,106 12,743,633 $185,256,357
Reinvestment of dividends 1,871,074 33,488,638 451,069 6,282,507
Redeemed (3,072,752) (58,834,741) (2,633,003) (41,371,155)
- --------------------------- ----------- ------------ ------------- ------------
Net increase (decrease) -
Investment A Shares 4,368,177 80,515,003 10,561,699 150,167,709
- --------------------------- ----------- ------------ ------------- ------------
Investment C Shares
Sold 168,181 3,161,985 145,512 2,361,235
Reinvestment of dividends 23,824 424,302 2,080 28,676
Redeemed (17,293) (317,883) (15,534) (251,539)
- --------------------------- ----------- ------------ ------------- ------------
Net increase -
Investment C Shares 174,712 3,268,404 132,058 2,138,372
- --------------------------- ----------- ------------ ------------- ------------
Net increase in Fund 4,542,889 $ 83,783,407 10,693,757 $152,306,081
- --------------------------- =========== ============ ============= ============
</TABLE>
<TABLE>
<CAPTION>
Equity Income Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- ----------------------
Shares Amount Shares Amount
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 310,909 $ 4,489,840 8,821,577 $106,096,267
Reinvestment of dividends 842,456 12,114,756 484 6,461
Redeemed (421,457) (6,106,195) (488,057) (6,300,505)
- --------------------------- ----------- ------------ ------------- ------------
Net increase -
Investment A Shares 731,908 10,498,401 8,334,004 99,802,223
- --------------------------- ----------- ------------ ------------- ------------
Investment C Shares
Sold 24,423 356,318 6,330 82,572
Reinvestment of dividends 2,099 30,207 28 359
Redeemed (3,757) (55,511) -- --
- --------------------------- ----------- ------------ ------------- ------------
Net increase -
Investment A Shares 22,765 331,014 6,358 82,931
- --------------------------- ----------- ------------ ------------- ------------
Net increase in Fund 754,673 $10,829,415 8,340,362 $99,885,154
- --------------------------- =========== ============ ============= ============
</TABLE>
100
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- -----------------------
Shares Amount Shares Amount
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 1,916,987 $28,658,083 1,989,624 $26,278,552
Reinvestment of dividends 868,226 12,319,651 454,771 5,665,373
Redeemed (452,454) (6,815,046) (2,333,372) (30,860,103)
- --------------------------- --------- ------------ ------------- ------------
Net increase (decrease) -
Investment A Shares 2,332,759 34,162,688 111,023 1,083,822
- --------------------------- --------- ------------ ------------- ------------
Investment C Shares
Sold 99,828 1,500,720 57,113 797,920
Reinvestment of dividends 13,812 195,541 1,425 17,840
Redeemed (3,142) (45,171) (5,707) (80,662)
- --------------------------- --------- ------------ ------------- ------------
Net increase -
Investment C Shares 110,498 1,651,090 52,831 735,098
- --------------------------- --------- ------------ ------------- ------------
Net increase in Fund 2,443,257 $35,813,778 163,854 $ 1,818,920
- --------------------------- ========= ============ ============= ============
<CAPTION>
Mid Cap Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- -----------------------
Shares Amount Shares Amount
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 1,545,377 $26,877,991 6,315,189 $84,164,198
Reinvestment of dividends 1,233,959 19,805,042 438,494 5,598,130
Redeemed (845,722) (14,744,674) (1,559,545) (21,785,247)
- --------------------------- --------- ------------ ------------- ------------
Net increase -
Investment A Shares 1,933,614 31,938,359 5,194,138 67,977,081
- --------------------------- --------- ------------ ------------- ------------
Investment C Shares
Sold 26,668 466,801 17,037 238,234
Reinvestment of dividends 4,820 76,645 1,737 22,049
Redeemed (4,127) (70,837) (11,013) (151,986)
- --------------------------- --------- ------------ ------------- ------------
Net increase -
Investment C Shares 27,361 472,609 7,761 108,297
- --------------------------- --------- ------------ ------------- ------------
Net increase in Fund 1,960,975 $32,410,968 5,201,899 $68,085,378
- --------------------------- ========= ============ ============= ============
</TABLE>
101
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- ----------------------
Shares Amount Shares Amount
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 1,328,133 $32,508,734 2,956,166 $32,508,734
Reinvestment of dividends - 7,083,876 687,514 7,083,876
Redeemed (1,285,399) (24,295,241) (2,257,739) (24,295,240)
- --------------------------- ----------- ------------ ------------- -------------
Net increase -
Investment A Shares 42,734 15,297,369 1,385,941 15,297,370
- --------------------------- ----------- ------------ ------------- -------------
Investment C Shares
Sold 7,526 306,090 28,683 306,089
Reinvestment of dividends - 5,968 580 5,968
Redeemed (4,350) (178,913) (17,099) (178,913)
- --------------------------- ----------- ------------ ------------- -------------
Net increase -
Investment C Shares 3,176 133,145 12,164 133,144
- --------------------------- ----------- ------------ ------------- -------------
Net increase in Fund 45,910 $15,430,514 1,398,105 $15,430,514
- --------------------------- =========== ============ ============= =============
<CAPTION>
Bond Fund For Income
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- ----------------------
Shares Amount Shares Amount
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 1,724,782 $20,989,034 13,407,383 $160,901,750
Reinvestment of dividends 64,251 782,316 2,588 31,037
Redeemed (744,370) (9,069,852) (525,871) (6,355,414)
- --------------------------- ----------- ------------ ------------- ------------
Net increase -
Investment A Shares 1,044,663 12,701,498 12,884,100 154,577,373
- --------------------------- ----------- ------------ ------------- ------------
Investment C Shares
Sold 10,719 129,808 8,938 107,172
Reinvestment of dividends 199 2,422 48 579
Redeemed (2,148) (25,961) (8,472) (101,597)
- --------------------------- ----------- ------------ ------------- ------------
Net increase -
Investment C Shares 8,770 106,269 514 6,154
- --------------------------- ----------- ------------ ------------- ------------
Net increase in Fund 1,053,433 $12,807,767 12,884,614 $154,583,527
- --------------------------- =========== ============ ============= ============
</TABLE>
102
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- --------------------------------------------------------------------------------
<TABLE>
Quality Bond Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- ----------------------
Shares Amount Shares Amount
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 1,321,320 $13,048,678 2,642,247 $25,418,923
Reinvestment of dividends 157,508 1,550,553 294,612 2,837,676
Redeemed (793,607) (7,794,632) (2,382,151) (22,952,488)
- --------------------------- ----------- ------------ ------------- -------------
Net increase -
Investment A Shares 685,221 6,804,599 554,708 5,304,111
- --------------------------- ----------- ------------ ------------- -------------
Investment C Shares
Sold 3,971 39,145 5,487 53,536
Reinvestment of dividends 540 5,321 978 9,427
Redeemed (5,343) (52,971) (2,758) (26,564)
- --------------------------- ----------- ------------ ------------- -------------
Net increase -
Investment C Shares (832) (8,505) 3,707 36,399
- --------------------------- ----------- ------------ ------------- -------------
Net increase in Fund 684,389 $ 6,796,094 558,415 $ 5,340,510
- --------------------------- =========== ============ ============= =============
</TABLE>
<TABLE>
U.S. Government Securities Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- ----------------------
Shares Amount Shares Amount
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 398,796 $3,897,451 2,689,563 $25,865,573
Reinvestment of dividends 57,164 556,741 128,488 1,236,000
Redeemed (557,780) (5,438,682) (1,685,808) (16,263,648)
- --------------------------- ----------- ------------ ------------- -------------
Net increase (decrease) -
Investment A Shares (101,820) (984,490) 1,132,243 10,837,925
- --------------------------- ----------- ------------ ------------- -------------
Investment C Shares
Sold 570 5,515 5,308 51,806
Reinvestment of dividends 172 1,678 350 3,373
Redeemed (1,442) (13,944) (3,045) (29,441)
- --------------------------- ----------- ------------ ------------- -------------
Net increase -
Investment C Shares (700) (6,751) 2,613 25,738
- --------------------------- ----------- ------------ ------------- -------------
Net increase in Fund (102,520) $ (991,241) 1,134,856 $10,863,663
- --------------------------- =========== ============ ============= =============
</TABLE>
103
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal Bond Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
----------------------- -----------------------
Shares Amount Shares Amount
-------- -------- -------- -----------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 1,399,310 $17,197,545 9,250,564 $111,100,626
Reinvestment of dividends 64,280 788,052 322 3,914
Redeemed (1,078,503) (13,242,585) (1,011,275) (12,155,917)
- ------------------------------------- ---------- ------------ ------------- -------------
Net increase -
Investment A Shares 385,087 4,743,012 8,239,611 98,948,623
- ------------------------------------- ---------- ------------ ------------- -------------
Investment C Shares
Sold - - 33,017 398,029
Reinvestment of dividends 7 88 115 1,376
Redeemed (916) (11,194) (32,223) (388,123)
- ------------------------------------- ---------- ------------ ------------- -------------
Net increase -
Investment A Shares (909) (11,106) 909 11,282
- ------------------------------------- ---------- ------------ ------------- -------------
Net increase in Fund 384,178 $ 4,731,906 8,240,520 $ 98,959,905
- ------------------------------------- ========== ============ ============= =============
</TABLE>
<TABLE>
<CAPTION>
Ohio Tax Free Fund
----------------------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
---------------------- -----------------------
Shares Amount Shares Amount
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Investment A Shares
Sold 1,849,238 $19,058,231 15,859,540 $158,671,462
Reinvestment of dividends 111,995 1,152,181 80,121 806,973
Redeemed (894,537) (9,191,960) (3,116,779) (31,423,698)
- ------------------------------------- ---------- ------------ ------------- -------------
Net increase -
Investment A Shares 1,066,696 11,018,452 12,822,882 128,054,737
- ------------------------------------- ---------- ------------ ------------- -------------
Investment C Shares
Sold 17,117 175,328 21,215 214,790
Reinvestment of dividends 765 7,863 253 2,559
Redeemed (364) (3,735) (1,260) (12,824)
- ------------------------------------- ---------- ------------ ------------- -------------
Net increase -
Investment C Shares 17,518 179,456 20,208 204,525
- ------------------------------------- ---------- ------------ ------------- -------------
Net increase in Fund 1,084,214 $11,197,908 12,843,090 $128,259,262
- ------------------------------------- ========== ============ ============= =============
</TABLE>
104
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Commercial Paper Fund
--------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
--------------- ---------------
Shares Shares
--------------- ---------------
<S> <C> <C>
Trust Shares
Sold 696,889,511 1,348,424,212
Reinvestment of dividends 285,760 784,154
Redeemed (627,502,790) (1,308,202,316)
- ------------------------------------- --------------- ---------------
Net increase - Trust Shares 69,672,481 41,006,050
- ------------------------------------- --------------- ---------------
Investment Shares
Sold 20,240,864 47,419,610
Reinvestment of dividends - -
Redeemed (22,248,570) (33,321,741)
- ------------------------------------- --------------- ---------------
Net increase -
Investment Shares (2,007,706) 14,097,869
- ------------------------------------- --------------- ---------------
Net increase in Fund 67,664,775 55,103,919
- ------------------------------------- =============== ===============
</TABLE>
<TABLE>
<CAPTION>
Government Cash Reserves Fund
--------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
--------------- ---------------
Shares Shares
--------------- ---------------
<S> <C> <C>
Trust Shares
Sold 136,344,415 263,396,399
Reinvestment of dividends - -
Redeemed (108,693,544) (233,179,851)
- ------------------------------------- --------------- ---------------
Net increase - Trust Shares 27,650,871 30,216,548
- ------------------------------------- --------------- ---------------
Investment Shares
Sold 72,812,082 126,718,634
Reinvestment of dividends - -
Redeemed (48,377,249) (84,984,156)
- ------------------------------------- --------------- ---------------
Net increase -
Investment Shares 24,434,833 41,734,478
- ------------------------------------- --------------- ---------------
Net increase in Fund 52,085,704 71,951,026
- ------------------------------------- =============== ===============
</TABLE>
<TABLE>
<CAPTION>
U.S. Treasury Obligations Fund
--------------------------------------
Period Ended Year Ended
January 31, 1998 July 31, 1997
--------------- ---------------
Shares Shares
--------------- ---------------
<S> <C> <C>
Shares
Sold 848,097,301 1,825,126,116
Reinvestment of dividends 3,258,711 5,305,436
Redeemed (726,308,391) (1,780,618,543)
- ------------------------------------- --------------- ---------------
Net increase (decrease)
in Fund 125,047,621 49,813,009
- ------------------------------------- =============== ===============
</TABLE>
105
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- --------------------------------------------------------------------------------
(4) Investment Advisory Fee and Other Transactions with Affiliates
Investment Advisory Fee--Fifth Third Bank, the Trust's investment Advisor (the
"Advisor"), receives for its services an annual investment advisory fee based on
a percentage of each Fund's average daily net assets (see below).
Fund Annual Rate
---- -----------
Quality Growth Fund 0.80%
Equity Income Fund 0.80%
Balanced Fund 0.80%
Mid Cap Fund 0.80%
International Equity Fund 1.00%
Bond Fund For Income 0.55%
Quality Bond Fund 0.55%
U.S. Government Securities Fund 0.55%
Municipal Bond Fund 0.55%
Ohio Tax Free Fund 0.55%
Commercial Paper Fund 0.40%
Government Cash Reserves Fund 0.40%
Treasury Obligations Fund 0.40%
The Advisor may voluntarily choose to waive a portion of its fee and reimburse
certain operating expenses of each Fund. The Advisor can modify or terminate
this voluntary waiver and reimbursement at any time at its sole discretion. For
the six months ended January 31, 1998, the Advisor waived fees in the following
amounts:
Fund Fees Waived
---- -----------
Quality Growth Fund $ 0
Equity Income Fund 0
Balanced Fund 0
Mid Cap Fund 0
International Equity Fund 0
Bond Fund For Income 0
Quality Bond Fund 0
U.S. Government Securities Fund 16,829
Municipal Bond Fund 0
Ohio Tax Free Fund 0
Commercial Paper Fund 43,770
Government Cash Reserves Fund 44,733
Treasury Obligations Fund 427,546
Morgan Stanley Asset Management, Inc. is the International Equity Fund's
sub-advisor (the "Sub-Advisor"). The Advisor compensates the Sub-Advisor at the
annual rate of 0.50% of the International Equity Fund's average daily net
assets.
Administrative Fee--BISYS Fund Services ("BISYS") is the Trust's administrator.
The administrator generally assists in all aspects of the Trust's administration
and operation including providing the Fund with certain administrative personnel
and services necessary to operate the Fund. Pursuant to a separate agreement
with BISYS, Fifth Third Bank performs sub-administrative services on behalf of
the Funds including providing certain administrative personnel and services
necessary to operate the Funds, for which it receives a fee from BISYS computed
daily as a percentage of the daily net assets of the Funds. Under the terms of
the administration agreement, BISYS' fees are computed daily as a percentage of
the average net assets of the Trust for the period. Administration fees are
computed at 0.20% of first $1 billion of net assets of the Trust, 0.18% of net
assets of the Trust between $1 billion and $2 billion, and 0.17% of more than $2
billion of net assets of the Trust. For the six months ended January 31, 1998,
the administrator waived the following amounts:
106
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- --------------------------------------------------------------------------------
Fund Fees Waived
---- -----------
Quality Growth Fund $ 43,414
Equity Income Fund 53,543
Balanced Fund 47,435
Mid Cap Fund 45,877
International Equity Fund 0
Bond Fund For Income 57,180
Quality Bond Fund 47,091
U.S. Government Securities Fund 21,035
Municipal Bond Fund 51,536
Ohio Tax Free Fund 49,452
Commercial Paper Fund 218,844
Government Cash Reserves Fund 150,223
U.S. Treasury Obligations Fund 305,349
Distribution Services Fee--BISYS serves as the Trust's principal distributor
(the "Distributor") and has entered into a Distribution Plan with the Trust with
respect to Investment A Shares and Investment C Shares. This Plan is in
accordance with Rule 12b-1 under the 1940 Act. Under the Distribution Plan, the
Funds may pay a fee to the Distributor in an amount computed at an annual rate
of up to 0.35% for Investment A Shares and up to 0.75% for Investment C Shares.
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. For the six months ended January 31, 1998, the Distributor
waived the following amounts:
Fund Fees Waived
---- -----------
Quality Growth Fund $757,047
Equity Income Fund 216,662
Balanced Fund 235,251
Mid Cap Fund 353,973
International Equity Fund 247,899
Bond Fund For Income 286,848
Quality Bond Fund 164,717
U.S. Government Securities Fund 73,598
Municipal Bond Fund 180,371
Ohio Tax Free Fund 300,962
Commercial Paper Fund 51,221
Government Cash Reserves Fund 220,073
U.S. Treasury Obligations Fund 0
Administrative Services Fee--The Trust has entered into an Administrative
Services Agreement with Fifth Third Bank with respect to Investment C Shares.
Under the Agreement, the Funds may make payments up to 0.25% of the average
daily net asset value of Investment C Shares in exchange for certain
administrative services for shareholders and for the maintenance of shareholder
accounts.
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 handles the execution of the transfer and
dividend disbursing agent functions.
Fifth Third Bank also maintains the Funds' accounting records except with
respect to the International Equity Fund 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. BISYS Fund Services provides accounting services for the
International Equity Fund for a fee based on average net assets for the period.
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. For the six months ended January 31, 1998, Fifth Third
Bank waived the following custodian fees:
107
<PAGE>
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- --------------------------------------------------------------------------------
Fund Fees Waived
---- -----------
Quality Growth Fund $ 0
Equity Income Fund 0
Balanced Fund 0
Mid Cap Fund 0
International Equity Fund 0
Bond Fund For Income 0
Quality Bond Fund 0
U.S. Government Securities Fund 0
Municipal Bond Fund 0
Ohio Tax Free Fund 0
Commercial Paper Fund 21,886
Government Cash Reserves Fund 0
U.S. Treasury Obligations Fund 0
Certain officers of the Trust are officers of BISYS Fund Services.
(5) Investment Transactions
Purchases and sales of investments, excluding short-term securities for the six
months ended January 31, 1998, were as follows:
<TABLE>
<CAPTION>
Quality Equity Mid International
Growth Income Balanced Cap Equity
Fund Fund Fund Fund Fund
- --------------------------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Purchases $ 96,053,400 $ 16,119,968 $109,418,541 $ 46,966,924 $ 23,628,499
- ---------------------------
Sales $ 45,817,335 $ 18,039,913 $ 98,021,670 $ 35,294,345 $ 29,250,345
- ---------------------------
U.S. Ohio
Bond Fund Quality Government Municipal Tax Free
For Bond Securities Bond Bond
Income Fund Fund Fund Fund
- --------------------------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Purchases $121,590,681 $182,551,727 $ 39,905,366 $ 42,414,307 $ 32,690,860
- ---------------------------
Sales $ 88,257,730 $168,753,666 $ 41,215,889 $ 44,212,366 $ 18,741,557
- ---------------------------
</TABLE>
(6) Concentration of Credit Risk
The Ohio Tax Free Bond Fund invests a substantial proportion of its assets in
debt obligations issued by the State of Ohio and its political subdivisions,
agencies and public authorities. The Portfolio is more susceptible to factors
adversely affecting issuers of Ohio municipal securities than a fund that is not
concentrated in these issuers to the same extent.
The International Equity 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 or portfolio securities and currency
holdings. The International Equity Fund has a relatively large concentration of
securities invested in companies domiciled in Japan. The Fund may be more
susceptible to the political, social and economic events adversely affecting the
Japanese companies than funds not so concentrated.
108
<PAGE>
Fountain Square Funds
- --------------------------------------------------------------------------------
(7) Federal Income Tax Information
The Trust designates the following eligible distributions for the dividends
received deduction for corporations for the taxable year ended July 31, 1997:
<TABLE>
<CAPTION>
Distributions from
Dividend Dividend Income
Income per Share
----------- ---------------------
<S> <C> <C>
Quality Growth Fund
Investment A Shares $3,575,354 $.086
Investment C Shares 15,351 .004
Equity Income Fund
Investment A Shares 1,819,077 .140
Investment C Shares 755 .095
Balanced Fund
Investment A Shares 822,034 .096
Investment C Shares 6,525 .069
Mid Cap Fund
Investment A Shares 1,305,448 .037
Investment C Shares 3,040 -
</TABLE>
The Trust designates the following exempt-interest dividends for the year ended
July 31, 1997:
<TABLE>
<CAPTION>
Municipal Bond Ohio Tax Free
Fund Bond Fund
---------------- ----------------
<S> <C> <C>
Exempt-interest dividends:
Investment A Shares $2,217,602 $6,309,126
Investment C Shares 1,376 2,559
Exempt-interest dividends per share:
Investment A Shares .266 .431
Investment C Shares .221 .359
</TABLE>
For the year ended July 31, 1997, 100% of the exempt-interest income for the
Ohio Tax Free Bond Fund was generated from Ohio municipal securities.
As of July 31, 1997, for federal income purposes, the following Funds have
capital loss carryforwards available to offset future capital gains, if any:
<TABLE>
<CAPTION>
Amount Expires
--------- ---------
<S> <C> <C>
Government Securities Fund $1,100,088 2003
948,699 2004
Quality Bond Fund 162,755 2002
</TABLE>
109
<PAGE>
Fountain Square Quality Growth Fund
Financial Highlights - Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 ------------------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993*
------------- --------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $19.23 $13.16 $11.79 $9.70 $9.54 $10.00
- ---------------------------------- ------------- --------- ---------- ---------- ---------- ----------
Income from investment
operations
- ----------------------------------
Net investment income (loss) 0.01 0.08 0.12 0.14 0.13 0.10
- ----------------------------------
Net realized and unrealized
gains (losses) on investments 0.76 6.75 1.37 2.09 0.17 0.47
- ---------------------------------- ------------- --------- ---------- ---------- ---------- ----------
Total from investment
operations 0.77 6.83 1.49 2.23 0.30 0.37
- ---------------------------------- ------------- --------- ---------- ---------- ---------- ----------
Less distributions
- ----------------------------------
Dividends to shareholders
from net investment income (0.02) (0.09) (0.12) (0.14) (0.13) (0.09)
- ----------------------------------
Distribution to shareholders
from net realized gains on
investment transactions (1.46) (0.67) -- -- -- --
- ----------------------------------
Distribution to shareholders
in excess of net investment
income (a) -- -- -- -- (0.01) --
- ---------------------------------- ------------- --------- ---------- ---------- ---------- ----------
Total distributions (1.48) (0.76) (0.12) (0.14) (0.14) (0.09)
- ---------------------------------- ------------- --------- ---------- ---------- ---------- ----------
Net asset value, end of period $18.52 $19.23 $13.16 $11.79 $9.70 $9.54
================================== ============= ========= ========== ========== ========== ==========
Total return ** 4.30%(d) 54.02% 12.69% 23.21% 3.17% (3.73%)(d)
- ----------------------------------
Ratios to Average Net Assets
- ----------------------------------
Expenses 1.00%(c) 1.00% 0.99% 1.00% 1.00% 0.99%(c)
- ----------------------------------
Net investment income (loss) 0.11%(c) 0.45% 0.98% 1.44% 1.42% 1.47%(c)
- ----------------------------------
Expense waiver/
reimbursement (b) 0.37%(c) 0.36% 0.03% 0.05% 0.03% 0.05%(c)
- ----------------------------------
Supplemental data
- ----------------------------------
Net assets, end of period
(000 omitted) $465,715 $399,683 $134,469 $82,594 $69,648 $67,681
- ----------------------------------
Portfolio turnover rate (e) 11% 37% 37% 34% 37% 28%
- ----------------------------------
Average commission rate paid(f) $0.0588 $0.0622 $0.0652 -- -- --
- ----------------------------------
</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.
(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) Annualized.
(d) Not annualized.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(f) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
110
<PAGE>
Fountain Square Quality Growth Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period Period
Ending Ended Ended
January 31, July 31, July 31,
1998 1997 1996*
(Unaudited)
-------------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period $19.18 $13.16 $13.37
- -------------------------------------------------- ----------- ----------- -----------
Income from investment operations
- --------------------------------------------------
Net investment income (0.03) (0.03) --
- --------------------------------------------------
Net realized and unrealized losses
on investments 0.73 6.72 (0.21)
- -------------------------------------------------- ----------- ----------- -----------
Total from investment operations 0.70 6.69 (0.21)
- -------------------------------------------------- ----------- ----------- -----------
Less distributions
- --------------------------------------------------
Dividends to shareholders from net
investment income -- -- --
- --------------------------------------------------
Distributions to shareholders from net
realized gains on investment transactions (1.46) (0.67) --
- -------------------------------------------------- ----------- ----------- -----------
Total distributions (1.46) (0.67) --
- -------------------------------------------------- ----------- ----------- -----------
Net asset value, end of period $18.42 $19.18 $13.16
- -------------------------------------------------- =========== =========== ===========
Total return ** 3.87%(d) 52.79% 12.50%(a)
- --------------------------------------------------
Ratios to Average Net Assets
- --------------------------------------------------
Expenses 1.75%(c) 1.75% 1.77%(c)
- --------------------------------------------------
Net investment income (loss) 0.62%(c) (0.32%) 0.26%(c)
- --------------------------------------------------
Expense waiver/reimbursement (b) 0.27%(c) 0.26% 0.06%(c)
- --------------------------------------------------
Supplemental data
- --------------------------------------------------
Net assets, end of period (000 omitted) $6,238 $3,146 $420
- --------------------------------------------------
Portfolio turnover rate (e) 11% 37% 37%
- --------------------------------------------------
Average commission rate paid (f) $0.0588 $0.0622 $0.0652
- --------------------------------------------------
</TABLE>
* Reflects operations for the period from April 25, 1996 (date of commencement
of operations) to July 31, 1996.
**Based on net asset value, which does not reflect the contingent deferred sales
charge.
(a) Represents total return for Investment A Shares for the period from August
1, 1995 to April 24, 1996 plus the total return for the Investment C Shares
for the period from April 25, 1996 to July 13, 1996.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Annualized
(d) Not annualized.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(f) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
111
<PAGE>
Fountain Square Equity Income Fund
Financial Highlights - Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period
Ending Ended
January 31, July 31,
1998* 1997*
(Unaudited)
-------------- -------------
<S> <C> <C>
Net asset value, beginning of period $14.44 $12.00
- -------------------------------------------------- ------------- -------------
Income from investment operations
- --------------------------------------------------
Net investment income (loss) 0.11 0.15
- --------------------------------------------------
Net realized and unrealized gains (losses)
on investments 1.67 2.43
- -------------------------------------------------- ------------- -------------
Total from investment operations 1.78 2.58
- -------------------------------------------------- ------------- -------------
Less distributions
- --------------------------------------------------
Distributions to shareholders from net
investment income (0.13) (0.14)
- --------------------------------------------------
Distributions to shareholders from net
realized gains on investment transactions (1.48) -
- -------------------------------------------------- ------------- -------------
Total Distributions (1.61) (0.14)
- -------------------------------------------------- ------------- -------------
Net asset value, end of period $14.61 $14.44
- -------------------------------------------------- ============= =============
Total return ** 12.61%(c) 21.64%(c)
- --------------------------------------------------
Ratios to Average Net Assets
- --------------------------------------------------
Expenses 1.00%(b) 1.06%(b)
- --------------------------------------------------
Net investment income (loss) 1.56%(b) 2.32%(b)
- --------------------------------------------------
Expense waiver/reimbursement (a) 0.44%(b) 0.42%(b)
- --------------------------------------------------
Supplemental data
- --------------------------------------------------
Net assets, end of period (000 omitted) $132,469 $120,324
- --------------------------------------------------
Portfolio turnover rate (c) 13% 28%(b)
- --------------------------------------------------
Average commission rate paid (e) $0.0759 $0.0665
- --------------------------------------------------
</TABLE>
*Reflects operations for the period from January 27, 1997 (date of commencement
of operations) to July 31, 1997.
**Based on net asset value, which does not reflect the sales load.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
112
<PAGE>
Fountain Square Equity Income Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period
Ending Period
January 31, Ended
1998 July 31,
(Unaudited) 1997*
-------------- ------------
<S> <C> <C>
Net asset value, beginning of period $14.45 $12.00
- -------------------------------------------------- ---------- --------
Income from investment operations
- --------------------------------------------------
Net investment income (loss) 0.07 0.10
- --------------------------------------------------
Net realized and unrealized gain (losses)
on investments 1.66 2.45
- -------------------------------------------------- ---------- --------
Total from investment operations 1.73 2.55
- -------------------------------------------------- ---------- --------
Less distributions
- --------------------------------------------------
Dividends to shareholders from net
investment income (0.08) (0.10)
- --------------------------------------------------
Distributions to shareholders from net
realized gains on investment transactions (1.48) -
- -------------------------------------------------- ---------- --------
Total Distributions (1.56) (0.10)
- -------------------------------------------------- ---------- --------
Net asset value, end of period $14.62 $14.45
- -------------------------------------------------- ========== ========
Total return** 12.20%(c) 21.30%(c)
- --------------------------------------------------
Ratio to Average Net Assets
- --------------------------------------------------
Expenses 1.75%(b) 1.81%(b)
- --------------------------------------------------
Net investment income (loss) 0.86%(b) 1.56%(b)
- --------------------------------------------------
Expense waiver/reimbursement (a) 0.34%(b) 0.26%(b)
- --------------------------------------------------
Supplemental data
- --------------------------------------------------
Net assets, end of period (000 omitted) $426 $92
- --------------------------------------------------
Portfolio turnover rate (c) 13% 28%(b)
- --------------------------------------------------
Average commission rate paid (e) $0.0759 $0.0665
- --------------------------------------------------
</TABLE>
* Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
** Based on net asset value, which does not reflect the contingent deferred
sales charge.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
113
<PAGE>
Fountain Square Balanced Fund
Financial Highlights - Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 -------------------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993*
------------- --------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $15.33 $11.75 $11.28 $9.70 $9.78 $10.00
- ------------------------------------ ---------- -------- -------- ------- ------- --------
Income from investment
operations
- ------------------------------------
Net investment income (loss) 0.14 0.27 0.27 0.28 0.26 0.20
- ------------------------------------
Net realized and unrealized
gains (losses) on investments 0.36 4.06 0.47 1.57 (0.06) (0.25)
- ------------------------------------ ---------- -------- -------- ------- ------- --------
Total from investment
operations 0.50 4.33 0.74 1.85 0.20 (0.05)
- ------------------------------------ ---------- -------- -------- ------- ------- --------
Less distributions
- ------------------------------------
Dividends to shareholders
from net investment income (0.15) (0.26) (0.27) (0.27) (0.26) (0.17)
- ------------------------------------
Distribution to shareholders
from net realized gains on
investment transactions (1.25) (0.49) -- -- -- --
- ------------------------------------
Distribution to shareholders
in excess of net investment
income (a) -- -- -- -- (0.02) --
- ------------------------------------ ---------- -------- -------- ------- ------- --------
Total distributions (1.40) (0.75) (0.27) (0.27) (0.28) (0.17)
- ------------------------------------ ---------- -------- -------- ------- ------- --------
Net asset value, end of period $14.43 $15.33 $11.75 $11.28 $9.70 $9.78
- ------------------------------------ ========== ======== ======== ======= ======= ========
Total return ** 3.43%(d) 38.45% 6.52% 19.37% 2.02% (0.51%)(d)
- ------------------------------------
Ratios to Average Net Assets
- ------------------------------------
Expenses 1.00%(c) 1.00% 1.00% 1.00% 1.00% 1.00%(c)
- ------------------------------------
Net investment income (loss) 1.91%(c) 2.05% 2.31% 2.73% 2.64% 3.04%(c)
- ------------------------------------
Expense waiver/
reimbursement (b) 0.42%(c) 0.40% 0.06% 0.06% 0.06% 0.08%(c)
- ------------------------------------
Supplemental data
- ------------------------------------
Net assets, end of period
(000 omitted) $149,223 $122,765 $92,808 $58,075 $59,363 $60,168
- ------------------------------------
Portfolio turnover rate (e) 80% 101% 61% 58% 53% 30%
- ------------------------------------
Average commission
rate paid (f) $0.0622 $0.0240 $0.0062 -- -- --
- ------------------------------------
</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.
(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) Annualized.
(d) Not annualized.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued
(f) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
114
<PAGE>
Fountain Square Balanced Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period Period
Ending Ended Ended
January 31, July 31, July 31
1998 1997 1996*
(Unaudited)
-------------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period $15.34 $11.75 $12.13
- ----------------------------------------------- --------- -------- --------
Income from investment operations
- -----------------------------------------------
Net investment income (loss) 0.08 0.16 0.05
- -----------------------------------------------
Net realized and unrealized gain (losses)
on investments 0.36 4.08 (0.39)
- ----------------------------------------------- --------- -------- --------
Total from investment operations 0.44 4.24 (0.34)
- ----------------------------------------------- --------- -------- --------
Less distributions
- -----------------------------------------------
Dividends to shareholders from net
investment income (0.09) (0.16) (0.04)
- ----------------------------------------------- --------- -------- --------
Distributions to shareholders from net
realized gains on investment transactions (1.25) (0.49) --
- ----------------------------------------------- --------- -------- --------
Total Distributions (1.34) (0.65) (0.04)
- ----------------------------------------------- --------- -------- --------
Net asset value, end of period $14.44 $15.34 $11.75
- ----------------------------------------------- ========= ======== ========
Total return ** 3.06%(d) 37.52% 6.32%(a)
- -----------------------------------------------
Ratios to Average Net Assets
- -----------------------------------------------
Expenses 1.75%(c) 1.75% 1.78%(c)
- -----------------------------------------------
Net investment income (loss) 1.22%(c) 1.30% 1.60%(c)
- -----------------------------------------------
Expense waiver/reimbursement (b) 0.32%(c) 0.30% 0.07%(c)
- -----------------------------------------------
Supplemental data
- -----------------------------------------------
Net assets, end of period (000 omitted) $2,683 $1,155 $264
- -----------------------------------------------
Portfolio turnover rate (e) 80% 101% 61%
- -----------------------------------------------
Average commission rate paid (f) $0.0622 $0.0240 $0.0062
- -----------------------------------------------
</TABLE>
*Reflects operations for the period from April 25, 1996 (date of commencement
of operations) to July 31, 1996.
**Based on net asset value, which does not reflect the contingent deferred sales
charge.
(a) Represents total return for Investment A Shares for the period from August
1, 1995 to April 24, 1996 plus the total return for the Investment C Shares
for the period from April 25, 1996 to July 31, 1996.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Annualized.
(d) Not Annualized.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(f) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
115
<PAGE>
Fountain Square Mid Cap Fund
Financial Highlights - Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 -----------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993*
----------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $16.98 $12.60 $12.59 $10.10 $9.68 $10.00
- ------------------------------------- -------- --------- -------- -------- -------- ---------
Income from investment
operations
- -------------------------------------
Net investment income (loss) (0.01) 0.02 0.06 0.08 0.06 0.06
- -------------------------------------
Net realized and unrealized
gains (losses) on investments 1.20 5.55 0.11 2.48 0.43 (0.33)
- ------------------------------------- -------- --------- -------- -------- -------- ---------
Total from investment operations 1.19 5.57 0.17 2.56 0.49 (0.27)
- ------------------------------------- -------- --------- -------- -------- -------- ---------
Less distributions
- -------------------------------------
Dividends to shareholders
from net investment income - (0.02) (0.07) (0.07) (0.07) (0.05)
- -------------------------------------
Dividends to shareholders
in excess of net investment
income - (0.02) - - - -
- -------------------------------------
Distributions to shareholders
from net realized gains on
investment transactions (1.74) (1.15) (0.09) - - -
- ------------------------------------- -------- --------- -------- -------- -------- ---------
Total distributions (1.74) (1.19) (0.16) (0.07) (0.07) (0.05)
- ------------------------------------- -------- --------- -------- -------- -------- ---------
Net asset value, end of period $16.43 $16.98 $12.60 $12.59 $10.10 $9.68
- ------------------------------------- ======== ========= ======== ======== ======== =========
Total return 7.19%(c) 47.17% 1.27% 25.45% 5.07% (2.73%)(c)
- -------------------------------------
Ratios to Average Net Assets
- -------------------------------------
Expenses 1.00%(b) 1.00% 1.00% 1.00% 1.00% 0.99%(b)
- -------------------------------------
Net investment income (loss) 0.13%(b) 0.10% 0.42% 0.77% 0.60% 0.88%(b)
- -------------------------------------
Expense waiver/
reimbursement (a) 0.40%(b) 0.37% 0.06% 0.18% 0.33% 0.40%(b)
- -------------------------------------
Supplemental data
- -------------------------------------
Net assets, end of period
(000 omitted) $211,768 $186,066 $72,663 $47,184 $30,210 $24,019
- -------------------------------------
Portfolio turnover rate (d) 18% 52% 54% 23% 44% 20%
- -------------------------------------
Average commission
rate paid (e) $0.0592 $0.0635 $0.0659 - - -
- -------------------------------------
</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.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
116
<PAGE>
Fountain Square Mid Cap Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period Period
Ending Ended Ended
January 31, July 31 July 31
1998 1997 1996*
(Unaudited)
----------- ------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period $16.88 $12.59 $13.72
- ------------------------------------------------ ------- ------- -------
Income from investment operations
- ------------------------------------------------
Net investment income (0.01) (0.07) (0.01)
- ------------------------------------------------
Net realized and unrealized losses
on investments 1.13 5.51 (1.12)
- ------------------------------------------------ ------- ------- -------
Total from investment operations 1.12 5.44 (1.13)
- ------------------------------------------------ ------- ------- -------
Less distributions
- ------------------------------------------------
Dividends to shareholders from net
investment income - - -
- ------------------------------------------------ ------- ------- -------
Distributions to shareholders from net
realized gains on investment transactions (1.74) (1.15) -
- ------------------------------------------------ ------- ------- -------
Total distributions (1.74) (1.15) -
- ------------------------------------------------ ------- ------- -------
Net asset value, end of period $16.26 $16.88 $12.59
- ------------------------------------------------ ======= ======= =======
Total return ** 6.87%(d) 46.05% 1.11%(a)
- ------------------------------------------------
Ratios to Average Net Assets
- ------------------------------------------------
Expenses 1.75%(c) 1.75% 1.78%(c)
- ------------------------------------------------
Net investment income (loss) 0.86%(c) (0.62%) (0.51%)(c)
- ------------------------------------------------
Expense waiver/reimbursement (b) 0.30%(c) 0.27% 0.06%(c)
- ------------------------------------------------
Supplemental data
- ------------------------------------------------
Net assets, end of period (000 omitted) $867 $439 $229
- ------------------------------------------------
Portfolio turnover rate (e) 18% 52% 54%
- ------------------------------------------------
Average commission rate paid (f) $0.0592 $0.0635 $0.0659
- ------------------------------------------------
</TABLE>
* Reflects operations for the period from April 24, 1996 (date of commencement
of operations) to July 31, 1996.
** Based on net asset value, which does not reflect the contingent deferred
sales charge.
(a) Represents total return for Investment A Shares for the period from August
1, 1995 to April 23, 1996 plus the total return for the Investment C Shares
for the period from April 24, 1996 to July 13, 1996.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Annualized
(d) Not annualized.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(f) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
117
<PAGE>
Fountain Square International Equity Fund
Financial Highlights - Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending Period
January 31, Year Ended July 31 Ended
1998 ------------------- July 31,
(Unaudited) 1997 1996 1995*
----------- ------ ------ ------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.05 $10.74 $9.83 $10.00
- -----------------------------------------------
Income from investment operations
- -----------------------------------------------
Net investment income (loss) - 0.04 0.01 0.05
- -----------------------------------------------
Net realized and unrealized gains
(losses) on investment (0.35) 2.15 0.90 (0.22)
- ----------------------------------------------- --------- ------ ------ ------
Total from investment operations (0.35) 2.19 0.91 (0.17)
- ----------------------------------------------- --------- ------ ------ ------
Less distributions
- -----------------------------------------------
Dividends to shareholders from net
investment income (0.59) (0.66) - -
- -----------------------------------------------
Distributions to shareholders in excess
of net investment income - (0.16) - -
- -----------------------------------------------
Distributions to shareholders from
net realized gains on investment
transactions (0.30) (0.06) - -
- ----------------------------------------------- --------- ------ ------ ------
Total distributions (0.89) (0.88) - -
- ----------------------------------------------- --------- ------ ------ ------
Net asset value, end of period $10.81 $12.05 $10.74 $9.83
- ----------------------------------------------- ========= ====== ====== ======
Total return ** (2.50%)(c) 21.78% 9.26% (1.70%)(c)
- -----------------------------------------------
Ratios to Average Net Assets
- -----------------------------------------------
Expenses 1.44%(b) 1.38% 1.61% 1.65%(b)
- -----------------------------------------------
Net investment income (loss) 1.83%(b) 0.39% 0.32% 0.62%(b)
- -----------------------------------------------
Expense waiver/reimbursement (a) 0.35%(b) 0.35% 0.05% 0.07%(b)
- -----------------------------------------------
Supplemental data
- -----------------------------------------------
Net assets, end of period (000 omitted) $136,603 $151,728 $120,349 $86,442
- -----------------------------------------------
Portfolio turnover rate (d) 19% 60% 41% 54%
- -----------------------------------------------
Average commission rate paid (e) $0.0123 $0.0028 $0.0010 -
- -----------------------------------------------
</TABLE>
* Reflects operations for the period from August 19, 1994 (date of initial
public investment) to July 31, 1993.
** Based on net asset value, which does not reflect the sales load.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
118
<PAGE>
Fountain Square International Equity Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period Period
Ending Ended Ended
January 31, July 31, July 31,
1998 1997 1996*
(Unaudited)
------------ --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period $12.01 $10.71 $11.21
- --------------------------------------------------- --------- --------- ---------
Income from investment operations
- ---------------------------------------------------
Net investment income (loss) (0.61) (0.02) 0.01
- ---------------------------------------------------
Net realized and unrealized gains (losses)
on investments (0.25) 2.16 (0.51)
- --------------------------------------------------- --------- --------- ---------
Total from investment operations (0.86) 2.14 (0.50)
- --------------------------------------------------- --------- --------- ---------
Less distributions
- ---------------------------------------------------
Dividends to shareholders from net
investment income (0.05) (0.46) -
- ---------------------------------------------------
Distributions to shareholders in excess of
net investment income - (0.32) -
- ---------------------------------------------------
Distributions to shareholders from net
realized gains on investment transactions (0.30) (0.06) -
- --------------------------------------------------- --------- --------- ---------
Total distributions (0.35) (0.84) -
- --------------------------------------------------- --------- --------- ---------
Net asset value, end of period $10.80 $12.01 $10.71
- --------------------------------------------------- ========= ========= =========
Total return ** 2.82%(d) 21.25% 8.95%(a)
- ---------------------------------------------------
Ratios to Average Net Assets
- ---------------------------------------------------
Expenses 2.19%(c) 2.13% 2.34%(c)
- ---------------------------------------------------
Net investment income (loss) 0.99%(c) (0.28%) 0.76%(c)
- ---------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(c) 0.25% -
- ---------------------------------------------------
Supplemental data
- ---------------------------------------------------
Net assets, end of period (000 omitted) $224 $210 $57
- ---------------------------------------------------
Portfolio turnover rate (e) 18% 60% 41%
- ---------------------------------------------------
Average commission rate paid (f) $0.0123 $0.0028 $0.0010
- ---------------------------------------------------
</TABLE>
* Reflects operations for the period from April 25, 1996 (date of commencement
of operations) to July 31, 1996.
** Based on net asset value, which does not reflect the contingent deferred
sales charge.
(a) Represents total return for Invesment A Shares for the period from August 1,
1995 to April 24, 1996 plus the total return for the Investment C Shares for
the period from April 25, 1996 to July 13, 1996.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Annualized
(d) Not annualized.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(f) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
119
<PAGE>
Fountain Square Bond For Income Fund
Financial Highlights - Investment A Shares
- -------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period
Ending Ended
January 31, July 31,
1998 1997 *
(Unaudited)
---------- ----------
<S> <C> <C>
Net asset value, beginning of period $12.19 $12.00
- -------------------------------------------------- --------- ---------
Income from investment operations
- --------------------------------------------------
Net investment income (loss) 0.35 0.37
- --------------------------------------------------
Net realized and unrealized losses
on investments 0.12 0.18
- -------------------------------------------------- --------- ---------
Total from investment operations 0.47 0.55
- -------------------------------------------------- --------- ---------
Less distributions
- --------------------------------------------------
Dividends to shareholders from net
investment income (0.36) (0.36)
- --------------------------------------------------
Distributions to shareholders from net
realized gains on investment transactions (0.05) -
- --------------------------------------------------
Total Distributions (0.41) (0.36)
- -------------------------------------------------- --------- ---------
Net asset value, end of period $12.25 $12.19
- -------------------------------------------------- ========= =========
Total return ** 3.95%(c) 4.64%(c)
- --------------------------------------------------
Ratios to Average Net Assets
- --------------------------------------------------
Expenses 0.75%(b) 0.79%(b)
- --------------------------------------------------
Net investment income (Loss) 5.68%(b) 6.08%(b)
- --------------------------------------------------
Expense waiver/reimbursement (a) 0.42%(b) 0.42%(b)
- --------------------------------------------------
Supplemental data
- --------------------------------------------------
Net assets, end of period (000 omitted) $170,671 $157,108
- --------------------------------------------------
Portfolio turnover rate (d) 62% 157%(b)
- --------------------------------------------------
</TABLE>
* Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
** Based on net asset value, which does not reflect the contingent deferred
sales charge.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
120
<PAGE>
Fountain Square Bond For Income Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period
Ending Ended
January 31, July 31,
1998 1997 *
(Unaudited)
---------- ---------
<S> <C> <C>
Net asset value, beginning of period $12.18 $12.00
- ----------------------------------------------- ------- -------
Income from investment operations
- -----------------------------------------------
Net investment income (loss) 0.61 (0.01)
- -----------------------------------------------
Net realized and unrealized gains (losses)
on investments (0.19) 0.50
- ----------------------------------------------- ------- -------
Total from investment operations 0.42 0.49
- ----------------------------------------------- ------- -------
Less distributions
- -----------------------------------------------
Dividends to shareholders from net
investment income (0.31) (0.31)
- -----------------------------------------------
Distributions to shareholders from net
realized gains on investment transactions (0.05) -
- ----------------------------------------------- ------- -------
Total Distributions (0.36) (0.31)
- ----------------------------------------------- ------- -------
Net asset value, end of period $12.24 $12.18
- ----------------------------------------------- ======= =======
Total return ** 3.55%(c) 4.18%(c)
- -----------------------------------------------
Ratios to Average Net Assets
- -----------------------------------------------
Expenses 1.50%(b) 1.54%(b)
- -----------------------------------------------
Net investment income (Loss) 5.04%(b) 4.20%(b)
- -----------------------------------------------
Expense waiver/reimbursement (a) 0.32%(b) 0.26%(b)
- -----------------------------------------------
Supplemental data
- -----------------------------------------------
Net assets, end of period (000 omitted) $114 $6
- -----------------------------------------------
Portfolio turnover rate (d) 62% 157%(b)
- -----------------------------------------------
</TABLE>
* Reflects operations for the period from January 27, 1997 (date of
commencement of operations) to July 31, 1997.
** Based on net asset value, which does not reflect the contingent deferred
sales charge.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
121
<PAGE>
Fountain Square Quality Bond Fund
Financial Highlights - Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 -------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993*
------------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $9.85 $9.52 $9.72 $9.55 $10.29 $10.00
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Income from investment
operations
- -----------------------------------
Net investment income (loss) 0.28 0.55 0.56 0.64 0.57 0.41
- -----------------------------------
Net realized and unrealized
gains (losses) on investments 0.14 .32 (0.19) 0.17 (0.69) 0.26
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Total from investment
operations 0.42 0.87 0.37 0.81 (0.12) 0.67
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Less distributions
- -----------------------------------
Dividends to shareholders
from net investment income (0.29) (0.54) (0.57) (0.64) (0.59) (0.38)
- -----------------------------------
Distribution to shareholders
from net realized gains on
investment transactions - - - - (0.03) -
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Total distributions (0.29) (0.54) (0.57) (0.64) (0.62) (0.38)
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Net asset value, end of period $9.98 $9.85 $9.52 $9.72 $9.55 $10.29
- ----------------------------------- ============= ========= ========= ======== ========= =========
Total return ** 4.40%(c) 9.43% 3.86% 8.89% (1.25%) 6.78%(c)
- -----------------------------------
Ratios to Average Net Assets
- -----------------------------------
Expenses 0.75%(b) 0.75% 0.75% 0.75% 0.75% 0.74%(b)
- -----------------------------------
Net investment income (loss) 5.63%(b) 5.71% 5.80% 6.72% 5.76% 6.07%(b)
- -----------------------------------
Expense waiver/
reimbursement (a) 0.45%(b) 0.41% 0.06% 0.09% 0.11% 0.23%(b)
- -----------------------------------
Supplemental data
- -----------------------------------
Net assets, end of period
(000 omitted) $99,838 $91,789 $83,422 $55,767 $47,272 $37,962
- -----------------------------------
Portfolio turnover rate (d) 215% 181% 117% 138% 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.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
122
<PAGE>
Fountain Square Quality Bond Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period Period
Ending Ended Ended
January 31, July 31 July 31
1998 1997 1996*
(Unaudited)
-------------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period $9.86 $9.53 $9.62
- ------------------------------------------------- -------------- --------- ---------
Income from investment operations
- -------------------------------------------------
Net investment income 0.24 0.49 0.14
- -------------------------------------------------
Net realized and unrealized losses
on investments 0.13 0.32 (0.08)
- ------------------------------------------------- -------------- --------- ---------
Total from investment operations 0.37 0.81 0.06
- ------------------------------------------------- -------------- --------- ---------
Less distributions
- -------------------------------------------------
Dividends to shareholders from net
investment income (0.25) (0.48) (0.15)
- ------------------------------------------------- -------------- --------- ---------
Net asset value, end of period $9.98 $9.86 $9.53
- ------------------------------------------------- ============== ========= =========
Total return ** 3.92%(c) 8.68% 3.71%(d)
- -------------------------------------------------
Ratios to Average Net Assets
- -------------------------------------------------
Expenses 1.49%(b) 1.50% 1.52%(b)
- -------------------------------------------------
Net investment income (loss) 4.89%(b) 4.97% 5.03%(b)
- -------------------------------------------------
Expense waiver/reimbursement (b) 0.35%(b) 0.31% 0.09%(b)
- -------------------------------------------------
Supplemental data
- -------------------------------------------------
Net assets, end of period (000 omitted) $198 $204 $162
- -------------------------------------------------
Portfolio turnover rate (e) 215% 181% 117%
- -------------------------------------------------
</TABLE>
* Reflects operations for the period from April 25, 1996 (date of commencement
of operations) to July 31, 1996.
** Based on net asset value, which does not reflect the contingent deferred
sales charge.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized
(c) Not annualized.
(d) Represents total return for Investment A Shares for the period from August
1, 1995 to April 23, 1996 plus the total return for the Investment C Shares
for the period from April 24, 1996 to July 13, 1996.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
123
<PAGE>
Fountain Square U.S. Government Securities Fund
Financial Highlights - Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 -------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993*
------------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $9.75 $9.55 $9.77 $9.64 $10.21 $10.00
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Income from investment
operations
- -----------------------------------
Net investment income (loss) 0.26 0.54 0.55 0.58 0.51 0.35
- -----------------------------------
Net realized and unrealized
gains (losses) on investments 0.13 0.19 (0.20) 0.13 (0.49) 0.13
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Total from investment
operations 0.39 0.73 0.35 0.71 0.02 0.48
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Less distributions
- -----------------------------------
Dividends to shareholders
from net investment income (0.27) (0.53) (0.57) (0.58) (0.57) (0.27)
- -----------------------------------
Distribution to shareholders
from net realized gains on
investment transactions - - - - (0.02) -
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Total distributions (0.27) (0.53) (0.57) (0.58) (0.59) (0.27)
- ----------------------------------- ------------- --------- --------- -------- --------- ---------
Net asset value, end of period $9.87 $9.75 $9.55 $9.77 $9.64 $10.21
- ----------------------------------- ============= ========= ========= ======== ========= =========
Total return ** 4.10%(c) 7.83% 3.63% 7.66% 0.11% 4.87%(c)
- -----------------------------------
Ratios to Average Net Assets
- -----------------------------------
Expenses 0.75%(b) 0.75% 0.75% 0.75% 0.75% 0.74%(b)
- -----------------------------------
Net investment income (loss) 5.33%(b) 5.56% 5.67% 5.98% 5.17% 5.36%(b)
- -----------------------------------
Expense waiver/
reimbursement (a) 0.53%(b) 0.50% 0.29% 0.39% 0.18% 0.33%(b)
- -----------------------------------
Supplemental data
- -----------------------------------
Net assets, end of period
(000 omitted) $41,973 $42,414 $30,754 $25,054 $29,107 $29,603
- -----------------------------------
Portfolio turnover rate (d) 108% 169% 103% 115% 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.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
124
<PAGE>
Fountain Square U.S. Government Securities Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
Six Month
Period Period Period
Ending Ended Ended
January 31, July 31 July 31
1998 1997 1996*
(Unaudited)
----------- ------- -------
Net asset value, beginning of period $9.75 $9.56 $9.65
- ------------------------------------------- ------- ------- -------
Income from investment operations
- -------------------------------------------
Net investment income 0.23 0.46 0.16
- -------------------------------------------
Net realized and unrealized losses
on investments 0.11 0.19 (0.10)
- ------------------------------------------- ------ ------ ------
Total from investment operations 0.34 0.65 0.06
- ------------------------------------------- ------ ------ ------
Less distributions
- -------------------------------------------
Dividends to shareholders from net
investment income (0.24) (0.46) (0.15)
- ------------------------------------------- ------ ------ ------
Net asset value, end of period $9.85 $9.75 $9.56
- ------------------------------------------- ====== ====== ======
Total return ** 3.51%(c) 6.92% 3.48%(d)
- -------------------------------------------
Ratios to Average Net Assets
- -------------------------------------------
Expenses 1.50%(b) 1.50% 1.52%(b)
- -------------------------------------------
Net investment income (loss) 4.57%(b) 4.82% 4.80%(b)
- -------------------------------------------
Expense waiver/reimbursement (a) 0.43%(b) 0.40% 0.37%(b)
- -------------------------------------------
Supplemental data
- -------------------------------------------
Net assets, end of period (000 omitted) $69 $75 $49
- -------------------------------------------
Portfolio turnover rate (e) 108% 169% 103%
- -------------------------------------------
*Reflects operations for the period from April 24, 1996 (date of commencement
of operations) to July 31, 1996.
**Based on net asset value, which does not reflect the contingent deferred sales
charge.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized
(c) Not annualized.
(d) Represents total return for Invesment A Shares for the period from August 1,
1995 to April 23, 1996 plus the total return for the Investment C Shares for
the period from April 24, 1996 to July 13, 1996.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
125
<PAGE>
Fountain Square Municipal Bond Fund
Financial Highlights - Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
Six Month
Period Period
Ending Ended
January 31, July 31
1998 1997
(Unaudited)
----------- -----------
Net asset value, beginning of period $12.33 $12.00
- ---------------------------------------------- ----------- -----------
Income from investment operations
- ----------------------------------------------
Net investment income (loss) 0.26 0.28
- ----------------------------------------------
Net realized and unrealized gains (losses)
on investments 0.10 0.32
- ---------------------------------------------- ----------- -----------
Total from investment operations 0.36 0.60
- ---------------------------------------------- ----------- -----------
Less distributions
- ----------------------------------------------
Dividends to shareholders from net
investment income (0.27) (0.27)
- ----------------------------------------------
Distributions to shareholders from net
realized gains on investment transactions (0.09) --
- ---------------------------------------------- ----------- -----------
Total Distributions (0.36) (0.27)
- ---------------------------------------------- ----------- -----------
Net asset value, end of period $12.33 $12.33
- ---------------------------------------------- =========== ===========
Total return ** 2.97%(c) 5.04%(c)
- ----------------------------------------------
Ratios to Average Net Assets
- ----------------------------------------------
Expenses 0.75%(b) 0.81%(b)
- ----------------------------------------------
Net investment income (loss) 4.18%(b) 4.44%(b)
- ----------------------------------------------
Expense waiver/reimbursement (a) 0.45%(b) 0.42%(b)
- ----------------------------------------------
Supplemental data
- ----------------------------------------------
Net assets, end of period (000 omitted) $106,318 $101,616
- ----------------------------------------------
Portfolio turnover rate (d) 47% 63%(b)
- ----------------------------------------------
*Reflects operations for the period from January 27, 1997 (date of commencement
of operations) to July 31, 1997.
**Based on net asset value, which does not reflect the sales load.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
126
<PAGE>
Fountain Square Municipal Bond Fund
Financial Highlights - Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
For the Period
August 1, Period
1997 to Ended
January 8, July 31
1998 1997
(Unaudited)***
-------------- ------
Net asset value, beginning of period $12.33 $12.00
- -------------------------------------------------- ------ ------
Income from investment operations
- --------------------------------------------------
Net investment income (loss) 0.19 (0.20)
- --------------------------------------------------
Net realized and unrealized losses
on investments 0.10 0.75
- -------------------------------------------------- ------ ------
Total from investment operations 0.29 0.55
- -------------------------------------------------- ------ ------
Less distributions
- --------------------------------------------------
Dividends to shareholders from net
investment income (0.22) (0.22)
- --------------------------------------------------
Distributions to shareholders from net
realized gains on investment transactions (0.09) --
- -------------------------------------------------- ------ ------
Total distributions (0.31) (0.22)
- -------------------------------------------------- ------ ------
Net asset value, end of period $12.31 $12.33
- -------------------------------------------------- ====== ======
Total return ** 2.35%(c) 4.65%(c)
- --------------------------------------------------
Ratios to Average Net Assets
- --------------------------------------------------
Expenses 1.50%(b) 1.56%(b)
- --------------------------------------------------
Net investment income (loss) 3.36%(b) 3.09%(b)
- --------------------------------------------------
Expense waiver/reimbursement (a) 0.38%(b) 0.26%(b)
- --------------------------------------------------
Supplemental data
- --------------------------------------------------
Net assets, end of period (000 omitted) $ -- $11
- --------------------------------------------------
Portfolio turnover rate (d) 47% 63%(b)
- --------------------------------------------------
*Reflects operations for the period from January 27, 1997 (date of commencement
of operations) to July 31, 1997.
**Based on net asset value, which does not reflect the contingent deferred sales
charge.
***As of January 8, 1998, all shares and assets were redeemed from the Municipal
Bond Fund Investment C Shares.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
127
<PAGE>
Fountain Square Ohio Tax Free Bond Fund
Financial Highlights -- Investment A Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 -------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993*
----------- -------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $10.31 $10.01 $9.99 $9.75 $9.95 $10.00
- ---------------------------------- -------- -------- --------- -------- --------- ---------
Income from investment
operations
- ----------------------------------
Net investment income (loss) 0.22 0.43 0.40 0.42 0.40 0.05
- ----------------------------------
Net realized and unrealized
gains (losses) on investments 0.09 0.30 0.03 0.24 (0.21) (0.05)
- ---------------------------------- -------- -------- --------- -------- --------- ---------
Total from investment
operations 0.31 0.73 0.43 0.66 0.19 -
- ---------------------------------- -------- -------- --------- -------- --------- ---------
Less distributions
- ----------------------------------
Dividends to shareholders
from net investment income (0.22) (0.43) (0.41) (0.42) (0.39) (0.05)
- ---------------------------------- -------- -------- --------- -------- --------- ---------
Distribution to shareholders
from net realized gains on
investment transactions (0.04) - - - - -
- ---------------------------------- -------- -------- --------- -------- --------- ---------
Total distributions (0.26) (0.43) (0.41) (0.42) (0.39) (0.05)
- ---------------------------------- -------- -------- --------- -------- --------- ---------
Net asset value, end of period $10.36 $10.31 $10.01 $ 9.99 $ 9.75 $ 9.95
- ---------------------------------- ======== ======== ========= ======== ========= =========
Total return ** 3.04%(c) 7.49% 4.33% 7.02% 1.95% (0.01%)(c)
- ----------------------------------
Ratios to Average Net Assets
- ----------------------------------
Expenses 0.75%(b) 0.75% 0.74% 0.35% 0.00% 0.00%(b)
- ----------------------------------
Net investment income (loss) 4.12%(b) 4.27% 4.01% 4.36% 4.18% 3.53%(b)
- ----------------------------------
Expense waiver/
reimbursement (a) 0.41%(b) 0.37% 0.32% 0.77% 1.33% 2.21%(b)
- ----------------------------------
Supplemental data
- ----------------------------------
Net assets, end of period
(000 omitted) $180,544 $168,800 $35,463 $28,315 $23,854 $8,163
- ----------------------------------
Portfolio turnover rate (d) 12% 49% 30% 27% 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.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued
(See Notes which are an integral part of the Financial Statements)
128
<PAGE>
Fountain Square Ohio Tax Bond Fund
Financial Highlights -- Investment C Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Six Month
Period Period Period
Ending Ended Ended
January 31, July 31 July 31
1998 1997 1996*
(Unaudited)
----------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period $10.31 $10.00 $10.02
- ------------------------------------------- ------- ------- -------
Income from investment operations
- -------------------------------------------
Net investment income 0.18 0.36 0.10
- -------------------------------------------
Net realized and unrealized losses
on investments 0.08 0.31 (0.01)
- ------------------------------------------- ------- ------- -------
Total from investment operations 0.26 0.67 0.09
- ------------------------------------------- ------- ------- -------
Less distributions
- -------------------------------------------
Dividends to shareholders from net
investment income (0.18) (0.36) (0.11)
- -------------------------------------------
Distributions to shareholders from net
realized gains on investment
transactions (0.04) - -
- ------------------------------------------- ------- ------- -------
Total distributions (0.22) (0.36) (0.11)
- ------------------------------------------- ------- ------- -------
Net asset value, end of period $10.35 $10.31 $10.00
- ------------------------------------------- ======= ======= =======
Total return ** 2.68%(c) 6.84% 3.98%(d)
- -------------------------------------------
Ratios to Average Net Assets
- -------------------------------------------
Expenses 1.50%(b) 1.50% 1.52%(b)
- -------------------------------------------
Net investment income (loss) 3.36%(b) 3.51% 3.41%(b)
- -------------------------------------------
Expense waiver/reimbursement (a) 0.31%(b) 0.27% 0.28%(b)
- -------------------------------------------
Supplemental data
- -------------------------------------------
Net assets, end of period (000 omitted) $430 $248 $38
- -------------------------------------------
Portfolio turnover rate (e) 12% 49% 30%
- -------------------------------------------
</TABLE>
* Reflects operations for the period from April 24, 1996 (date of commencement
of operations) to July 31, 1996.
** Based on net asset value, which does not reflect the contingent deferred
sales charge.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized
(c) Not annualized.
(a) Represents total return for Investment A Shares for the period from August
1, 1995 to April 23, 1996 plus the total return for the Investment C Shares
for the period from April 24, 1996 to July 13, 1996.
(e) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(See Notes which are an integral part of the Financial Statements)
129
<PAGE>
Fountain Square Commercial Paper Fund
Financial Highlights -- Investment Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 ----------------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993*
----------- --------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- -------- --------- ---------- ---------- ---------- ----------
Income from investment
operations
- ---------------------------------
Net investment income (loss) 0.03 0.05 0.05 0.05 0.03 0.03
- --------------------------------- -------- --------- ---------- ---------- ---------- ----------
Less distributions
- ---------------------------------
Dividends to shareholders
from net investment income (0.03) (0.05) (0.05) (0.05) (0.03) (0.03)
- --------------------------------- -------- --------- ---------- ---------- ---------- ----------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ======== ========= ========== ========== ========== ==========
Total return ** 2.64%(c) 5.11% 5.20% 5.25% 3.02% 2.70%(c)
- ---------------------------------
Ratios to Average Net Assets
- ---------------------------------
Expenses 0.52%(b) 0.52% 0.49% 0.49% 0.49% 0.48%(b)
- ---------------------------------
Net investment income (loss) 5.16%(b) 4.99% 5.06% 5.12% 2.97% 2.69%(b)
- ---------------------------------
Expense waiver/
reimbursement (a) 0.48%(b) 0.44% 0.40% 0.44% 0.45% 0.47%(b)
- ---------------------------------
Supplemental data
- ---------------------------------
Net assets, end of period
(000 omitted) $31,431 $33,438 $19,341 $10,169 $6,147 $4,714
- ---------------------------------
</TABLE>
* Reflects operations for the period from August 11, 1992 (date of initial
public investment) to July 31, 1993.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized.
(See Notes which are an integral part of the Financial Statements)
130
<PAGE>
Fountain Square Commercial Paper Fund
Financial Highlights - Trust Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 ----------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
------------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Income from investment
operations
- ---------------------------------
Net investment income (loss) 0.03 0.05 0.05 0.05 0.03 0.03
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Less distributions
- ---------------------------------
Dividends to shareholders
from net investment income (0.03) (0.05) (0.05) (0.05) (0.03) (0.03)
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ============= ========= ========= ======== ========= =========
Total return** 2.64%(c) 5.11% 5.20% 5.25% 3.02% 2.78%
- ---------------------------------
Ratios to Average Net Assets
- ---------------------------------
Expenses 0.52%(b) 0.52% 0.49% 0.49% 0.49% 0.48%
- ---------------------------------
Net investment income (loss) 5.16%(b) 4.99% 5.07% 5.12% 2.97% 2.75%
- ---------------------------------
Expense waiver/
reimbursement (a) 0.13%(b) 0.09% 0.08% 0.09% 0.10% 0.12%
- ---------------------------------
Supplemental data
- ---------------------------------
Net assets, end of period
(000 omitted) $411,500 $341,827 $300,821 $223,640 $213,126 $180,065
- ---------------------------------
</TABLE>
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized.
(See Notes which are an integral part of the Financial Statements)
131
<PAGE>
Fountain Square Government Cash Reserves Fund
Financial Highlights - Investment Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 ----------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
------------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Income from investment
operations
- ---------------------------------
Net investment income (loss) 0.03 0.05 0.05 0.05 0.03 0.03
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Less distributions
- ---------------------------------
Dividends to shareholders
from net investment income (0.03) (0.05) (0.05) (0.05) (0.03) (0.03)
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ============= ========= ========= ======== ========= =========
Total return** 2.58%(c) 5.00% 5.11% 5.22% 3.03% 2.76%
- ---------------------------------
Ratios to Average Net Assets
- ---------------------------------
Expenses 0.52%(b) 0.51% 0.51% 0.50% 0.50% 0.50%
- ---------------------------------
Net investment income (loss) 5.05%(b) 4.90% 4.97% 5.17% 2.96% 3.22%
- ---------------------------------
Expense waiver/
reimbursement (a) 0.48%(b) 0.44% 0.42% 0.45% 0.48% 0.50%
- ---------------------------------
Supplemental data
- ---------------------------------
Net assets, end of period
(000 omitted) $135,014 $110,578 $68,844 $45,726 $11,073 $10,923
- ---------------------------------
</TABLE>
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized.
(See Notes which are an integral part of the Financial Statements)
132
<PAGE>
Fountain Square Government Cash Reserves Fund
Financial Highlights - Trust Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 ----------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
------------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Income from investment
operations
- ---------------------------------
Net investment income (loss) 0.03 0.05 0.05 0.05 0.03 0.03
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Less distributions
- ---------------------------------
Dividends to shareholders
from net investment income (0.03) (0.05) (0.05) (0.05) (0.03) (0.03)
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ============= ========= ========= ======== ========= =========
Total return 2.58%(c) 5.01% 5.11% 5.22% 3.03% 2.76%
- ---------------------------------
Ratios to Average Net Assets
- ---------------------------------
Expenses 0.52%(b) 0.51% 0.50% 0.50% 0.50% 0.50%
- ---------------------------------
Net investment income (loss) 5.05%(b) 4.90% 4.99% 5.17% 3.01% 3.22%
- ---------------------------------
Expense waiver/
reimbursement (a) 0.13%(b) 0.09% 0.07% 0.20% 0.13% 0.15%
- ---------------------------------
Supplemental data
- ---------------------------------
Net assets, end of period
(000 omitted) $190,194 $162,543 $132,326 $129,603 $106,632 $92,993
- ---------------------------------
</TABLE>
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized.
(See Notes which are an integral part of the Financial Statements)
133
<PAGE>
Fountain Square U.S. Treasury Obligations Fund
Financial Highlights - Trust Shares
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Month
Period
Ending
January 31, Year Ended July 31,
1998 ----------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
------------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Income from investment
operations
- ---------------------------------
Net investment income (loss) 0.03 0.05 0.05 0.05 0.03 0.03
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Less distributions
- ---------------------------------
Dividends to shareholders
from net investment income (0.03) (0.05) (0.05) (0.05) (0.03) (0.03)
- --------------------------------- ------------- --------- --------- -------- --------- ---------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ============= ========= ========= ======== ========= =========
Total return** 2.67%(c) 5.11% 5.24% 5.18% 3.02% 2.82%
- ---------------------------------
Ratios to Average Net Assets
- ---------------------------------
Expenses 0.39%(b) 0.42% 0.43% 0.44% 0.44% 0.44%
- ---------------------------------
Net investment income (loss) 5.22%(b) 5.00% 5.10% 5.07% 2.99% 2.79%
- ---------------------------------
Expense waiver/
reimbursement (a) 0.24%(b) 0.17% 0.12% 0.11% 0.14% 0.15%
- ---------------------------------
Supplemental data
- ---------------------------------
Net assets, end of period
(000 omitted) $664,088 $539,087 $489,228 $321,640 $336,229 $290,408
- ---------------------------------
</TABLE>
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Annualized.
(c) Not Annualized.
(See Notes which are an integral part of the Financial Statements)
134
<PAGE>
<TABLE>
<CAPTION>
Addresses
- --------------------------------------------------------------------------------------------------------------
<S> <C>
Fountain Square Quality Growth Fund Fountain Square Funds
Fountain Square Equity Income Fund c/o Fifth Third Bank
Fountain Square Balanced Fund 38 Fountain Square Plaza
Fountain Square Mid Cap Fund Cincinnati, Ohio 45263
Fountain Square International Equity Fund
Fountain Square Bond Fund For Income
Fountain Square Quality Bond Fund
Fountain Square U.S. Government Securities Fund
Fountain Square Municipal Bond Fund
Fountain Square Ohio Tax Free Bond Fund
Fountain Square Commercial Paper Fund
Fountain Square Government Cash Reserves Fund
Fountain Square U.S. Treasury Obligations Fund
- --------------------------------------------------------------------------------------------------------------
Investment Advisor
Fifth Third Bank 38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------------------------------------
Custodian, Transfer Agent, Dividend Disbursing Agent, and Sub-Administrator
Fifth Third Bank 38 Fountain Square Plaza
Cincinnati, Ohio 45263
- --------------------------------------------------------------------------------------------------------------
Distributor and Administrator
BISYS Fund Services, L.P. 3435 Stelzer Road
Columbus, Ohio 43219
- --------------------------------------------------------------------------------------------------------------
Independent Auditors
Ernst & Young LLP 1300 Chiquita Center
250 East Fifth Street
Cincinnati, Ohio 45202
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
[LOGO OF FIFTH THIRD BANK APPEARS HERE]
Fifth Third Bank
Investment Advisor
