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SIGNATURE KIMBERLY A MALKOWSKI
TITLE TREASURER
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<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> FONTAINE CAPITAL APPRECIATION FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 3,932,002
<INVESTMENTS-AT-VALUE> 3,104,577
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,205,789
<SHARES-COMMON-STOCK> 446,919
<SHARES-COMMON-PRIOR> 683,834
<ACCUMULATED-NII-CURRENT> (2,803)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,377,562)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (827,425)
<NET-ASSETS> 2,998,000
<DIVIDEND-INCOME> 13,692
<INTEREST-INCOME> 133,168
<OTHER-INCOME> 0
<EXPENSES-NET> 102,433
<NET-INVESTMENT-INCOME> 44,427
<REALIZED-GAINS-CURRENT> (1,050,767)
<APPREC-INCREASE-CURRENT> (461,336)
<NET-CHANGE-FROM-OPS> (1,467,676)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 34,599
<NUMBER-OF-SHARES-REDEEMED> 278,136
<SHARES-REINVESTED> 6,622
<NET-CHANGE-IN-ASSETS> (3,406,799)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (326,795)
<OVERDISTRIB-NII-PRIOR> 2,502
<OVERDIST-NET-GAINS-PRIOR> 0
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<PER-SHARE-NAV-BEGIN> 9.37
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> (2.64)
<PER-SHARE-DIVIDEND> 0
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> FONTAINE GLOBAL GROWTH FUND
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
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<ACCUMULATED-NII-CURRENT> (30,521)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,202,354)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (548,911)
<NET-ASSETS> 1,501,278
<DIVIDEND-INCOME> 30,491
<INTEREST-INCOME> 44,634
<OTHER-INCOME> 0
<EXPENSES-NET> 92,457
<NET-INVESTMENT-INCOME> (17,332)
<REALIZED-GAINS-CURRENT> (2,162,038)
<APPREC-INCREASE-CURRENT> (100,982)
<NET-CHANGE-FROM-OPS> (2,280,352)
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<TABLE> <S> <C>
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<SERIES>
<NUMBER> 3
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<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 446,232
<INVESTMENTS-AT-VALUE> 373,823
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<PAYABLE-FOR-SECURITIES> 17,250
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<PAID-IN-CAPITAL-COMMON> 1,075,926
<SHARES-COMMON-STOCK> 60,806
<SHARES-COMMON-PRIOR> 254,409
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<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (509,758)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (72,408)
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<DIVIDEND-INCOME> 9,815
<INTEREST-INCOME> 50,566
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<NET-INVESTMENT-INCOME> 21,611
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<APPREC-INCREASE-CURRENT> (1,737)
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</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of The Fontaine Trust, comprised
of:
Fontaine Capital Appreciation Fund,
Fontaine Global Growth Fund, and
Fontaine Global Income Fund
We have audited the accompanying statement of assets and
liabilities, including the schedule of portfolio investments, for the
Fontaine Capital Appreciation Fund, Fontaine Global Growth Fund, and
Fontaine Global Income Fund as of December 31, 1997 and the related
statements of operations for the year then ended, the statement of changes
in net assets for the two years in the period then ended, and the financial
highlights for each of the four years in the period then ended were audited
by other auditors whose report dated February 20, 1997 expressed an
unqualified opinion of the statement of changes in net assets and the
financial highlights. These financial statements and financial highlights
are the responsibility of the Funds' management. Our responsibility is
to express an opinion on the financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of investments owned as of December 31, 1997 by correspondence
with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material respects, the
financial position of Fontaine Capital Appreciation Fund, Fontaine Global
Growth Fund and Fontaine Global Income Fund as of December 31, 1997,
and the results of their operations, their changes in net assets and financial
highlights for the respective periods as stated in the first paragraph, in
conformity with generally accepted accounting principles.
Sanville & Company
Certified Public Accountants
Abington, Pennsylvania
February 5, 1998
