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[PICTURE APPEARS HERE]
The Riverfront Income Equity Fund
The Riverfront Balanced Fund
The Riverfront Large Company Select Fund
The Riverfront Stock Appreciation Fund
The Riverfront U.S. Government Income Fund
The Riverfront Ohio Tax-Free Bond Fund
The Riverfront U.S. Government Securities Money Market Fund
[LOGO]
R I V E R F R O N T
F U N D S
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Table of Contents The Riverfront Funds
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<TABLE>
<S> <C>
Message From Your Chairman.................................................. 2
Message From Your Investment Adviser........................................ 4
Performance Reviews......................................................... 6
Statements of Assets and Liabilities........................................ 13
Statements of Operations.................................................... 15
Statements of Changes in Net Assets......................................... 17
Schedules of Portfolio Investments.......................................... 19
Notes to Financial Statements............................................... 32
Financial Highlights........................................................ 42
</TABLE>
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Message From The Chairman The Riverfront Funds
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Dear Shareholders:
We're pleased to report that the six month period ended June 30, 1997, was a
strong one for The Riverfront Funds. Equities continued to soar, and while
bonds did not generate the excitement that stocks did, they too posted positive
returns for the period.
Much of this activity was fueled by investors' continued interest in mutual
funds--and we're very pleased to report that many chose to invest in our fund
family based on performance. During the first half of 1997, net assets under
management in The Riverfront Funds increased 10%, rising from $363 million on
December 31, 1996, to $401 million at the end of the period. Moreover, as the
second half of the year began, net assets under management in The Riverfront
Income Equity Fund passed $100 million.
THE LARGE COMPANY SELECT FUND LAUNCHES
We're also pleased to report, as previously announced in our annual report, two
common trust funds managed by the Provident Bank for trust clients were merged
to form The Riverfront Large Company Select Fund on January 2, 1997. Now open
to all investors, the Fund invests primarily in larger capitalization
companies, many of which are among the best known names in the world--and which
led the markets higher throughout the period. Consequently, the Fund's first
months in operation were very strong ones, and well in line with the track
records of the two funds merged. A detailed summary of the Fund's activities
over the period is included in this report. For a prospectus on this Fund or
any of the Riverfront Funds, please call us at 1-800-424-2295. Please read the
prospectus carefully before investing.
A WORD OF CAUTION
Very simply, after the spectacular advances of the past several months,
valuations in the stock market are high. At this point, a correction would not
be all that surprising--and, as has happened in the past, one could materialize
very swiftly. For those investing with a long-term outlook, such a correction
would present a tremendous buying opportunity. For others with shorter time
horizons or unable to stomach the market's inherent volatility, such a downturn
might be more traumatic. Consequently, given the current environment, we
encourage you to review your time horizons and assess your tolerance for risk.
While we are very optimistic about the stock and bond markets' long-term
prospects, it's critical to keep in mind that they are just that: long-term
prospects.
IN CLOSING . . .
We urge you to read the following report closely. In it, you will find a
detailed discussion of the performance of each of the Riverfront Funds during
the six months ended June 30, 1997.
2
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Message From The Chairman, continued The Riverfront Funds
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Finally, we thank you for your continued confidence in us. We look forward to
providing you with the investment management you expect and to serve your needs
now and in the future. As always, if you would like a prospectus, have any
questions, or require any assistance, please don't hesitate to call us at 1-
800-424-2295.
Sincerely,
/s/ Stephen G. Mintos
Stephen G. Mintos
Chairman
The Riverfront Funds, Inc.
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THE RIVERFRONT FUNDS ARE NOT FDIC INSURED AND ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, THE PROVIDENT BANK OR ITS AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY. INVESTMENT PRODUCTS INVOLVE
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
------------------------------------------------------
3
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Message From The Investment Adviser The Riverfront Funds
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Dear Shareholders:
Despite the distance it has traveled and its advanced age, the bull market
steamed ahead in the first half of 1997. For a few brief weeks in early spring,
stocks in the S&P 500 Index declined approximately 9% in value. But corporate
earnings in the first quarter surprised investors when they increased by
approximately 10%, well above the original forecasts of only 5% growth in
earnings. Also, inflation figures as measured by the Consumer Price Index
dropped closer to the 2% level, not 3% as forecast by most economists.
Low interest rates, low inflation and solid corporate earnings--clearly the
ingredients for a favorable investment environment--led to a rebound in stock
prices. Enthusiasm returned to the minds of investors, and the stock market
bounced back and roared higher and higher throughout May and June.
Overlooked in all the euphoria over stock prices, were the fixed-income
markets. Concerned that the economy's growth did not seem to be slowing, bond
investors spent the first quarter anticipating action by the Federal Reserve
Bank. But inflation failed to ignite--and when the Fed did make a move on
interest rates, it was a very modest one. Thus, interest rates remained
relatively stable throughout the first half of the year. Given such an
environment, major gains in bond prices were unlikely. Nonetheless, while the
period was a quiet one, it was also one of positive progress.
UP, DOWN OR SIDEWAYS?
The question, of course, on everyone's mind is what happens next? Very simply,
the business cycle has not been repealed. The current economic cycle is over
seven years old. While there are no immediate signs of weakness, at some point
in time, the economy and the financial markets will weaken.
The economy did slow in the second quarter from its torrid pace in the first
quarter. Yet, we do not see any major decline in economic activity throughout
the rest of the year.
Corporate earnings, while not as strong as in the first half, are still
expected to be solid in the second half. Moreover, unless there is a
significant increase in inflationary pressure, the Federal Reserve seems
content to sit on the sidelines. And, given the recent declines in purchases of
consumer durables such as automobiles, this may be precisely the right strategy
for the Fed. Low inflationary pressure and low consumer demand will gradually
bring economic growth in line with the Fed's target of 3% over the course of
the next year.
International expansion will continue to fuel corporate earnings, although the
strength of the U. S. dollar may impact the earnings of those companies with
significant international business. Very simply, the economy is on a roll, and
while things may slow a bit in the months ahead, there is every reason to
believe that the environment will continue to be favorable for stocks and
bonds.
HOW HIGH IS UP?
Nevertheless, there is some reason for caution on the part of investors. As we
stated earlier, the business cycle has not been repealed--and neither have
market cycles. At current levels, stock prices are very high by all fundamental
measures of valuation. This is particularly true of the largest of the large-
cap companies--the so called "new nifty fifty"--that have been the market
leaders over the past few years. At this altitude, the market could encounter
some turbulence, especially if earnings fall short of expectations. Even the
tiniest piece of bad news could trigger a negative reaction. Needless to say,
any stock that disappoints can expect very harsh treatment.
On the other hand, many smaller-capitalization stocks have been overlooked
during the past year as investors have rushed into the large-cap issues. As a
result, on a relative valuation basis, many of these smaller stocks are
attractive. Consequently, in the years ahead, we see very real opportunity in
the mid- and small-cap sectors of the stock market.
4
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Message From The Investment Adviser, continued The Riverfront Funds
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THE IMPORTANCE OF BALANCE
A long-term, balanced approach to investing is more critical than ever. This is
why we offer you diversity among the seven different funds in the Riverfront
family of mutual funds. No one can tell you exactly when investor sentiment
will shift from one investment style or sector of the capital markets to an
alternative one.
Historically, the equity markets have returned 10% a year, not the 30%* we have
seen over the past two years--and there is little doubt that stocks will
eventually return to historical levels. It may not happen tomorrow. But it will
happen eventually. Consequently, moderation and diversification across asset
classes, not just equity sectors, are the key to success in the years ahead.
Sincerely,
/s/ Gary W. Queen
Gary W. Queen
Senior Managing Director
Capital Management Group
Provident Bank
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*Source: Ibbotson 1997 Yearbook, past performance is no guarantee of future
results.
5
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Performance Reviews The Riverfront Funds
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THE RIVERFRONT INCOME EQUITY FUND
The Fund invests primarily in income producing companies with a solid record of
dividend growth. In the first half of 1997, the market leaders were once again
very large multinational companies. The focus of the Fund, due to the emphasis
on dividend yield, was on mid-cap companies. Performance of the Fund was
impressive, returning 16.00% (Investor A shares)/1/ versus 14.75% for the
Lipper Equity Income Average.
SIZING OPPORTUNITIES
The Fund's strong performance was due to the fact that while investors focused
primarily on the very largest companies, we sought value in the lower end of
the large-cap spectrum. Moreover, we moved quickly to capitalize on event-
driven opportunities such as changes in management and favorable press. As a
result, the Fund captured gains of 17% in Dow Jones (1.0% of the Fund's
portfolio), 40% in Stanley Works (1.0%), 40% in Timken (0.4%) and 25% in
American Home Products (1.7%).* Several similar situations also made solid
contributions to performance.
TIME FOR A COMEBACK
Stocks in the lower end of the large-cap spectrum have lagged for some time and
may represent value in a market that has been led by the multinationals. The
current economic environment remains quite favorable, and we believe the Fund's
holdings have attractive long-term prospects. Using history as a guide, it
stands to reason that the market rally will broaden to include mid-cap stocks.
The long-term fundamentals are in place, so that the economy can continue to
expand and help fuel growth in corporate earnings for years to come.
Demographic trends offer a compelling argument for a continued market rally,
with people investing for retirement in the stock market. While the short term
may offer some volatility and perhaps a correction, we believe the long-term
outlook for stocks is very positive.
- -------
*The composition of the Fund's portfolio is subject to change.
/1/The return with the maximum sales charge of 4.50% was 10.80% for the period.
Past performance is not predictive of future results. Investment return and
principal value of The Riverfront Funds will fluctuate, so that the shares,
when redeemed, may be worth more or less than their original cost.
The Lipper Equity Income Average consists of 30 equity income funds.
6
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Performance Reviews, continued The Riverfront Funds
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THE RIVERFRONT BALANCED FUND
The Fund seeks to provide long-term growth with a secondary focus on income by
investing in a diversified portfolio of stocks, bonds and money market
instruments. This conservatively managed fund had 58% of its assets in
equities, 39% in fixed-income securities and 3% in cash and cash equivalents as
of June 30, 1997. The low equity exposure versus its peer group of similar
funds contributed to a slight underperformance for the first six months of
1997. The Fund returned 8.72% (Investor A shares)/1/ versus the Lipper Balanced
Average return of 10.21%. Given the high valuations being placed on many large-
cap companies, we believe that the Balanced Fund is well positioned for a
possible correction. We offer a conservative choice for investors looking for
steady growth.
REPOSITIONING NEARS COMPLETION
The repositioning of the portfolio was completed during the six months ended
June 30, 1997. The equity portion of the portfolio was restructured to more
closely resemble the S&P 500. Financial and technology stocks continued to be
overweighted in the portfolio and performed very well. We believe the outlook
for technology remains strong as society becomes more and more information
driven. We also believe that the Federal Reserve, the White House and Congress
will continue all efforts to fight inflation, thereby keeping interest rates
low, which bodes well for financials.
The focus of the fixed-income portfolio was shifted from longer duration assets
to intermediate assets, reducing the volatility to changes in interest rates.
As a result, the volatility in the fixed-income markets in the first half of
the year did not hinder performance.
The Fund's strongest equity performers continued to be large multinational
companies, the market leaders for some time. Caterpillar (0.9% of the Fund's
portfolio) and Deere & Co. (1.8%) in the capital goods sector both rose by more
than 35%. Procter & Gamble (2.1%) gained 32.1%. In the healthcare sector,
Bristol Myers Squibb (2.6%), Johnson & Johnson (0.6%), Merck (1.2%) and Pfizer
(0.7%) all returned more than 30%. Microsoft (0.7%)* was the strongest
performer, gaining 53.0% in the period.
WEIGHTING FOR A CORRECTION
The long-term outlook for stocks still appears to be very bright. The economic
environment of slow growth without inflation will continue to be positive for
large multinational companies. Information technology has provided the means to
reduce costs and make manufacturing processes more efficient. The market
continues to set new records, and the underlying fundamentals are still present
to foster growth for many years to come. The long-term outlook for interest
rates is also positive. Inflation seems to be becoming less of a concern, and
the balanced budget agreement recently passed by Congress is reducing the
supply of U.S. Government debt in the face of increasing demand. Demographic
trends are a positive for both the stock and bond markets, with many people
investing for retirement. The road to new highs in the markets may be a rough
one with corrections along the way, but the long-term outlook remains very
favorable.
As of June 30, 1997, the top five equity holdings in the Fund were Cisco
Systems (3.1% of the Fund's portfolio), Bristol Myers Squibb (2.6%), Intel
(2.1%), Procter & Gamble (2.1%) and Amoco (1.9%).*
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*The composition of the Fund's portfolio is subject to change.
/1/The return with the maximum sales charge of 4.50% was 3.83% for the period.
Past performance is not predictive of future results. Investment return and
principal value of The Riverfront Funds will fluctuate, so that the shares,
when redeemed, may be worth more or less than their original cost.
The Lipper Balanced Average is a composite of 522 funds in the Lipper balanced
category.
7
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Performance Reviews, continued The Riverfront Funds
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THE RIVERFRONT LARGE COMPANY SELECT FUND
Opened to all investors on January 2, 1997, the Fund is intended for investors
seeking long-term capital appreciation. The portfolio's assets are invested
primarily in larger-capitalization companies, many of which are among the
largest and best-known names in the country and around the world. For more
information on this Fund or for a prospectus, please call us at 1-800-424-2294.
OFF TO A STRONG START
Larger-capitalization stocks led the market to record highs during the six
months ended June 30, 1997. The index that measures this performance, the
Standard and Poor's Index of 500 companies, gained 20.6%. The biggest of the
larger-capitalization stocks performed extremely well. For example, the three
largest companies in the United States, General Electric (3.6% of the Fund's
portfolio), Coca-Cola (2.7%) and Microsoft (2.5%)*, saw their stock prices gain
32.5%, 29.7% and 53.0%, respectively. These three companies are among the top
fifteen holdings of the Fund.
The Fund's standout performers were our holdings in the financial and health-
care sectors. In the financial sector, American Express (2.8% of the Fund's
portfolio), American International Group (2.9%), BankAmerica (1.1%), Student
Loan Marketing (1.2%) and Travelers (1.2%) all rose by more than 30%. In the
health-care sector, Johnson & Johnson (0.2)% and Pfizer (2.0%)*
gained more than 30%. The Fund's total return of 18.91% (Investor A shares)/1/
soundly beat the returns of the average growth and income fund (15.52%) as
measured by the Lipper Growth and Income Average.
ONWARD . . . AND UPWARD?
We believe larger-capitalization stocks are likely to continue to do well in
this environment of steady economic growth. Today, large U.S. multinational
corporations are extremely competitive with other companies around the world in
terms of product quality, manufacturing efficiency and price. Absent Federal
Reserve action, financial stocks have the potential to post strong gains for
shareholders. In addition, innovation and global expansion should continue to
fuel growth in technology shares for years to come. Consequently, while the
months ahead may be a bit choppy, we believe the long-term outlook is very
bright.
As of June 30, 1997, the top five holdings in the Fund's portfolio were Intel
(4.3% of the Fund's portfolio), General Electric (3.6%), Deere & Co. (3.2%),
American International Group (3.1%) and Gillette (3.0%).*
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*The composition of the Fund's portfolio is subject to change.
/1/The return with the maximum sales charge of 4.50% was 13.57% for the period.
Past performance is not predictive of future results. Investment return and
principal value of The Riverfront Funds will fluctuate, so that the shares,
when redeemed, may be worth more or less than their original cost.
The Lipper Growth and Income Average consists of 554 growth and income funds.
8
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Performance Reviews, continued The Riverfront Funds
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THE RIVERFRONT STOCK APPRECIATION FUND
With the launch of our large-capitalization fund in January, the focus of the
Stock Appreciation Fund was changed from the larger and mid-capitalization
companies to smaller companies. Consequently, throughout the period, we worked
to restructure the portfolio. In an effort to reduce the tax consequences,
holdings were selectively liquidated and reinvested in smaller company stocks.
BUY LOW, SELL HIGH
The timing of this restructuring has enabled the Fund to purchase many small-
capitalization companies at very attractive prices. Throughout the period,
investor sentiment clearly favored larger capitalization stocks, and many sound
smaller cap stocks simply withered from neglect. We established positions in
financial, consumer cyclical, health-care and technology stocks. In addition,
we sought to purchase smaller cap stocks with dividend yields, such as Real
Estate Investment Trusts.
Two of the Fund's remaining large-cap holdings, Microsoft (5.0% of the Fund's
portfolio) and Dell Computer (3.8%),* had stellar performances, with returns of
53.0% and 121.2%, respectively during the period.
MORE WORK TO BE DONE
While we are very optimistic about the prospects for small company stocks, we
are very cautious in restructuring the portfolio. Over time, our focus will
tighten to small-cap stocks, and we will continue to identify and capitalize on
the most attractive of them.
As of June 30, 1997, the top five holdings in the Fund's portfolio were
Microsoft (5.0% of the Fund's portfolio), Dell Computer (3.8%), Cisco Systems
Inc. (2.7%), Ensco International (2.6%) and Jones Apparel Group (2.4%).*
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*The composition of the Fund's portfolio is subject to change. Small-
capitalization stocks carry additional risks, since smaller companies generally
have a higher risk of failure.
Past performance is not predictive of future results. Investment return and
principal value of The Riverfront Funds will fluctuate, so that the shares,
when redeemed, may be worth more or less than their original cost.
9
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Performance Reviews, continued The Riverfront Funds
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THE RIVERFRONT U.S. GOVERNMENT INCOME FUND
Reports of the economy's strength disturbed fixed-income investors, who spent
much of the six months ended June 30, 1997, anticipating a move on the part of
the Federal Reserve to discourage inflationary pressures. The Fed made a minor,
preemptive upward adjustment, even though inflation failed to ignite. As a
result, the marketplace was actually relatively calm despite the zealous
display by investors.
Focusing on yield enhancement, the Fund's holdings in Treasury securities were
decreased in favor of mortgage-backed securities, which provided healthier
performance in the environment. Also, maturities in the Fund were adjusted
somewhat slightly. As a result, for the six months ended June 30, 1997, the
Fund produced a total return of 2.55% (Investor A shares)./1/
OPTIMISTICALLY CAUTIOUS
In the months ahead, we do not expect a dramatic change in interest rates.
However, we do believe there is reason for caution given the growth of the
economy in the first quarter. The economy must slow significantly in the months
ahead to hit the Fed's 2%-3% growth target. Also, the Federal Reserve will
continue to monitor inflation closely and will not hesitate to act if signs of
inflationary pressures materialize.
Currently, Congress is moving closer to a balanced budget, which is reducing
the supply of government bonds. Therefore, demand is outstripping supply, and
this trend will continue as baby boomers move closer to retirement. As a
result, we believe the long-term prospects for government bonds, and for the
Fund, are promising.
As of June 30, 1997, over 70% of the portfolio's holdings were rated AAA.
Approximately 29.2% of the Fund's assets were invested in corporate bonds, 0.4%
in municipal bonds, 55.0% in U.S. government agencies, 12.3% in U. S.
treasuries and 2.4% in cash or cash equivalents. The average maturity of the
Fund's holdings was 5.4 years.*
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*The composition of the Fund's portfolio is subject to change.
/1/The return with the maximum sales charge of 4.50% was -2.03% for the period.
Past performance is not predictive of future results. Investment return and
principal value of The Riverfront Funds will fluctuate, so that the shares,
when redeemed, may be worth more or less than their original cost.
10
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Performance Reviews, continued The Riverfront Funds
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THE RIVERFRONT OHIO TAX-FREE BOND FUND/2/
The Ohio tax-free market mimicked the Treasury market, with interest rates
backing up modestly. Favorable supply and demand conditions muted this rate
increase in the Ohio market. As a result, the opportunities for yield
enhancements by adjusting maturities were somewhat limited. This environment
produced a very firm market for the period.
Nonetheless, when opportunities to increase yield arose without compromising
quality, we moved as quickly as possible. As a result, we are pleased to report
that the Fund produced a return of 1.77% (Investor A shares)/1/ for the six
months ended June 30, 1997.
DEMAND EXPECTED TO BOOM
With little new issuance on the horizon, we expect the market to remain very
firm in the months ahead. Pressure on municipalities to reduce borrowing is
unlikely to decrease any time soon. On the demand side of the equation, tax-
free fixed-income securities are certain to become more and more attractive to
baby boomers as they move closer to retirement age. Securities from states with
stringent and strictly enforced quality requirements like that of Ohio are sure
to be considered among the most attractive. As a result, while municipal bonds
may lack the thrill of stocks, we are very optimistic about their future
prospects.
As of June 30, 1997, the Fund was widely diversified, with no more than 12% of
its holdings concentrated in securities from one issuer. Approximately 56% of
its holdings were rated AAA. The average maturity of the portfolio was 5.0
years.*
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*The composition of the Fund's portfolio is subject to change.
/1/The return with the maximum sales charge of 4.50% was -2.81% for the period.
/2/The Fund's income may be subject to certain state and local taxes and
depending on your tax status, the federal alternative minimum tax.
Past performance is not predictive of future results. Investment return and
principal value of the Riverfront Funds will fluctuate, so that the shares,
when redeemed, may be worth more or less than their original cost.
11
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Performance Reviews, continued The Riverfront Funds
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THE RIVERFRONT U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
The six months ended June 30, 1997, were relatively quiet times for money
market investors. While the economy grew at a faster pace than the Federal
Reserve deemed optimal, evidence of inflationary pressures was scarce. However,
the Fed opted to douse whatever sparks of inflation might be present and raised
rates very slightly in early spring. Since such a move was anticipated for some
time, the market's response was very minimal. Throughout the period, the money
markets were relatively stable as rates traded in a narrow range.
In an effort to enhance the overall yield, we continued to emphasize
flexibility. Maturities in the Fund's portfolio were lengthened slightly to
enhance yield whenever the opportunity existed. Nevertheless, the portfolio was
widely diversified, and a laddered maturity structure was maintained throughout
the period to reduce exposure to any sudden shifts in interest rates, inflation
or investor sentiment.
Given the Fund's focus on capital preservation, we expect to maintain the
portfolio's current structure in the future. At the period's end, the average
maturity of the Fund's holdings was 33 days.*
- -------
*The composition of the Fund's portfolio is subject to change.
Performance data represent past performance and are not predictive of future
performance. Although The Riverfront U.S. Government Securities Money Market
Fund seeks to maintain a stable net asset value of $1.00 per share, there is no
assurance that it will be able to do so.
This report is authorized for distribution to prospective shareholders only
when preceded or accompanied by a prospectus. Please read the prospectus
carefully before investing or sending money.
The Riverfront Funds are distributed by BISYS Fund Services.
Shares of the Funds are not deposits or obligations of, or guaranteed or
endorsed by, The Provident Bank or its affiliates, and shares are not federally
insured by the FDIC or any other agency. Investment return and the principal
value of an investment in the variable net asset value portfolios will
fluctuate, so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
12
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Statements of Assets and Liabilities
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The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
U.S. GOVERNMENT U.S. GOVERNMENT INCOME
SECURITIES MONEY INCOME EQUITY
MARKET FUND FUND FUND
---------------- --------------- -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$138,894,483; $50,483,675; and
$91,728,691, respectively)......... $138,894,483 $50,746,823 $98,836,450
Repurchase agreements (Cost
$28,393,000; $0; and $0,
respectively)...................... 28,393,000
------------ ----------- -----------
TOTAL INVESTMENTS.................. 167,287,483 50,746,823 98,836,450
Cash............................... 568
Interest and dividends receivable.. 331,002 629,484 250,177
Receivable for capital shares
issued............................. 35 28,853
Receivable for investments sold.... 828,769
Prepaid expenses and other assets.. 6,423 26,060 22,158
------------ ----------- -----------
TOTAL ASSETS....................... 167,625,476 51,402,402 99,966,407
------------ ----------- -----------
LIABILITIES:
Cash Overdraft..................... 1,313,821
Dividends payable.................. 639,438 243,576 139,305
Payable for capital shares
redeemed........................... 2,214
Payable for investments purchased.. 620,649
Accrued expenses and other
payables:
Investment advisory fees......... 19,783 24,577 76,007
Administration fees.............. 3,520 1,126 1,615
Custodian and accounting fees.... 6,595 4,214 12,001
12b-1 fees (Investor A).......... 13,188 7,874 12,306
12b-1 fees (Investor B).......... 1,206 11,224
Registration and filing fees..... 47 735 1,308
Transfer agent fees.............. 3,714 1,233
Audit and legal fees............. 52,979 7,685 13,361
Printing fees.................... 18,088 6,523 1,889
Other............................ 6,074 447 1,381
------------ ----------- -----------
TOTAL LIABILITIES.................. 763,426 299,196 2,207,081
------------ ----------- -----------
NET ASSETS:
Capital............................ 166,864,340 52,659,539 78,690,906
Undistributed (distributions in
excess of) net investment income... (253,921)
Net unrealized
apppreciation/depreciation on
investments........................ 263,148 7,107,759
Accumulated undistributed net
realized gains (losses) on
investment transactions............ (2,290) (1,565,560) 11,960,661
------------ ----------- -----------
NET ASSETS....................... $166,862,050 $51,103,206 $97,759,326
============ =========== ===========
Net Assets
Investor A Shares................ $166,862,050 $49,666,097 $83,795,721
Investor B Shares................ NA 1,437,109 13,963,605
------------ ----------- -----------
Total.......................... $166,862,050 $51,103,206 $97,759,326
============ =========== ===========
Shares of capital stock
Investor A Shares................ 166,864,343 5,302,121 6,103,750
Investor B Shares................ NA 136,631 997,420
------------ ----------- -----------
Total.......................... 166,864,343 5,438,752 7,101,170
============ =========== ===========
Net asset value
Investor A Shares--redemption
price per share.................. $ 1.00 $ 9.37 $ 13.73
Investor B Shares--offering price
per share*....................... NA 10.52 14.00
============ =========== ===========
Maximum Sales Charge (Investor A).. NA 4.50% 4.50%
============ =========== ===========
Maximum Offering Price per share
(100%/(100% -- Maximum Sales
Charge) of net asset value
adjusted to nearest cent)
(Investor A) (a).................. $ 1.00 $ 9.81 $ 14.38
============ =========== ===========
</TABLE>
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(a) Offering price and redemption price are the same for the U.S. Government
Securities Money Market Fund.
* Redemption price of Investor B shares varies based on length of time shares
are held.
NA Not applicable
See Notes to Financial Statements.
13
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
STOCK LARGE COMPANY
OHIO TAX-FREE BALANCED APPRECIATION SELECT
BOND FUND FUND FUND FUND
------------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $7,971,128;
$18,290,057; $20,444,122,
and
$16,266,787,
respectively)............ $8,434,852 $20,574,248 $25,063,972 $31,160,763
Cash...................... 28,751
Interest and dividends
receivable................ 82,407 135,211 13,256 49,853
Receivable for capital
shares issued............. 31,035 5,732 4,156 3,124
Unamortized organization
costs..................... 3,806 18,152
Prepaid expenses and other
assets.................... 2,360 22,059 1,941 3,321
---------- ----------- ----------- -----------
TOTAL ASSETS.............. 8,550,654 20,766,001 25,087,131 31,235,213
---------- ----------- ----------- -----------
LIABILITIES:
Cash Overdraft............ 13,532
Dividends payable......... 28,414 22,767
Capital gains distribution
payable................... 10,179
Payable for capital shares
redeemed.................. 38,924 195
Payable for investments
purchased................. 50,625
Accrued expenses and other
payables:
Investment advisory
fees.................... 2,918 13,671 16,656 17,219
Administration fees..... 187 455 543
Custodian and accounting
fees.................... 1,021 2,563 3,123 3,229
12b-1 fees (Investor A). 1,863 2,140 5,192 5,285
12b-1 fees (Investor B). 1,090 7,805 744 384
Registration and filing
fees.................... 813 6,816
Transfer agent fees..... 3,286 3,045 1,815
Audit and legal fees.... 1,454 14,978 6,361 3,164
Printing fees........... 1,643 1,267 2,836
Organizational fees..... 11,184
Other................... 289 880 1,011 424
---------- ----------- ----------- -----------
TOTAL LIABILITIES......... 56,510 105,450 104,490 45,540
---------- ----------- ----------- -----------
NET ASSETS:
Capital................... 7,736,322 17,249,310 16,186,528 13,648,835
Undistributed
(distributions in excess
of) net investment income. (96,661) 636 (95,083) (79,111)
Net unrealized
appreciation/depreciation
on investments............ 463,724 2,284,191 4,619,850 14,893,976
Accumulated undistributed
net realized gains on
investment transactions... 390,759 1,126,414 4,271,346 2,725,973
---------- ----------- ----------- -----------
NET ASSETS.............. $8,494,144 $20,660,551 $24,982,641 $31,189,673
========== =========== =========== ===========
Net Assets
Investor A Shares....... $7,188,727 $ 9,920,666 $24,047,882 $30,662,331
Investor B Shares....... 1,305,417 10,739,885 934,759 527,342
---------- ----------- ----------- -----------
Total................. $8,494,144 $20,660,551 $24,982,641 $31,189,673
========== =========== =========== ===========
Shares of capital stock
Investor A Shares....... 698,204 788,710 2,413,467 2,586,108
Investor B Shares....... 124,163 828,643 90,723 44,495
---------- ----------- ----------- -----------
Total................. 822,367 1,617,353 2,504,190 2,630,603
========== =========== =========== ===========
Net asset value
Investor A Shares--
redemption price per
share................... $ 10.30 $ 12.58 $ 9.96 $ 11.86
Investor B Shares--
offering price per
share*.................. 10.51 12.96 10.30 11,85
========== =========== =========== ===========
Maximum Sales Charge
(Investor A).............. 4.50% 4.50% 4.50% 4.50%
========== =========== =========== ===========
Maximum Offering Price per
share (100%/(100% --
Maximum Sales Charge) of
net asset value adjusted
to nearest cent)
(Investor A)............. $ 10.79 $ 13.17 $ 10.43 $ 12.42
========== =========== =========== ===========
</TABLE>
- -------
* Redemption price of Investor B shares varies based on length of time shares
are held.
See Notes to Financial Statements.
14
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. For the six months ended June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
U.S. GOVERNMENT U.S. GOVERNMENT INCOME
SECURITIES MONEY INCOME EQUITY
MARKET FUND FUND FUND
---------------- --------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................... $4,560,706 $1,645,692 $ 44,359
Dividend income................... 1,351,164
---------- ---------- -----------
TOTAL INCOME...................... 4,560,706 1,645,692 1,395,523
---------- ---------- -----------
EXPENSES:
Investment advisory fees.......... 125,052 98,055 417,890
Administration fees............... 166,737 49,028 87,978
12b-1 fees (Investor A)........... 208,419 59,530 96,688
12b-1 fees (Investor B)........... 7,017 53,132
Custodian and accounting fees..... 41,685 24,513 65,983
Audit and legal fees.............. 45,141 18,385 26,727
Trustees' fees and expenses....... 7,128 2,026 3,294
Transfer agent fees............... 16,684 24,407 34,205
Registration and filing fees...... 127 1,506 904
Printing costs.................... 39,639 8,057 20,930
Other............................. 8,360 2,005 11,636
---------- ---------- -----------
GROSS EXPENSES.................... 658,972 294,529 819,367
Less: Fee waivers............... (125,052) (14,287) (19,605)
---------- ---------- -----------
Net Expenses.................. 533,920 280,242 799,762
---------- ---------- -----------
Net Investment Income............. 4,026,786 1,365,450 595,761
---------- ---------- -----------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS
Net realized gains from investment
transactions...................... 289,879 9,599,533
Net change in unrealized
appreciation/depreciation from
investments....................... (382,061) 3,123,401
---------- ---------- -----------
Net realized/unrealized gains
(losses) from investments......... (92,182) 12,722,934
---------- ---------- -----------
Change in net assets resulting
from operations................... $4,026,786 $1,273,268 $13,318,695
========== ========== ===========
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. For the six months ended June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
OHIO STOCK LARGE
TAX-FREE BALANCED APPRECIATION COMPANY
BOND FUND FUND FUND SELECT FUND*
--------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income................ $ 298,618 $ 272,077 $ 53,890 $ 27,906
Dividend income................ 117,338 174,699 211,436
--------- ---------- ---------- ----------
TOTAL INCOME................... 298,618 389,415 228,589 239,342
--------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees....... 27,235 90,074 110,134 114,907
Administration fees............ 11,192 20,017 27,534 28,727
12b-1 fees (Investor A)........ 12,199 12,307 33,459 35,726
12b-1 fees (Investor B)........ 5,674 50,855 3,833 744
Custodian and accounting fees.. 7,626 15,012 20,650 21,545
Audit and legal fees........... 3,969 20,740 8,151 9,042
Organization costs............. 56 7,602 1,848
Trustees' fees and expenses.... 463 840 1,293 1,182
Transfer agent fees............ 20,196 22,891 59,244 19,384
Registration and filing fees... 1,477 2,160 9,441 2,161
Printing costs................. 2,220 4,825 11,023 5,328
Other.......................... 359 6,854 1,515 1,106
--------- ---------- ---------- ----------
GROSS EXPENSES................. 92,610 246,631 293,879 241,700
Less: Fee waivers............ (5,447) (15,319)
--------- ---------- ---------- ----------
Net Expenses............... 87,163 231,312 293,879 241,700
--------- ---------- ---------- ----------
Net Investment Income (Loss)... 211,455 158,103 (65,290) (2,358)
--------- ---------- ---------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS
Net realized gains (losses)
from investment transactions... 393,488 1,280,076 2,235,214 2,725,973
Net change in unrealized
appreciation/depreciation
from investments.............. (451,482) 230,592 (823,228) 2,301,591
--------- ---------- ---------- ----------
Net realized/unrealized gains
(losses) from investments...... (57,994) 1,510,668 1,411,986 5,027,564
--------- ---------- ---------- ----------
Change in net assets resulting
from operations................ $ 153,461 $1,668,771 $1,346,696 $5,025,206
========= ========== ========== ==========
</TABLE>
- -------
* For the period January 2, 1997 (commencement of operations) through June 30,
1997.
See Notes to Financial Statements.
16
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
U.S. GOVERNMENT U.S. GOVERNMENT
SECURITIES MONEY MARKET INCOME INCOME EQUITY
FUND FUND FUND
---------------------------- ------------------------- -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------- ------------- ----------- ------------ ----------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income.. $ 4,026,786 $ 8,268,622 $ 1,365,450 $ 1,942,237 $ 595,761 $ 1,134,267
Net realized gains
(losses) from
investment
transactions.......... 289,879 90,347 9,599,533 13,473,952
Net change in
unrealized
appreciation/
depreciation from
investments........... (382,061) (1,183,269) 3,123,401 (1,397,638)
------------- ------------- ----------- ----------- ----------- -----------
Change in net assets
resulting from
operations ............ 4,026,786 8,268,622 1,273,268 849,315 13,318,695 13,210,581
------------- ------------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (4,026,786) (8,268,622) (1,604,908) (1,865,718) (561,313) (1,089,197)
In excess of net
investment income..... (11,775)
From net realized gains
from investments...... (10,109,545)
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ (44,492) (56,824) (34,448) (45,070)
In excess of net
investment income..... (1,105)
From net realized gains
from investments...... (941,583)
In excess of net
realized gains........ (94,220)
------------- ------------- ----------- ----------- ----------- -----------
Change in net assets
from shareholder
distributions.......... (4,026,786) (8,268,622) (1,649,400) (1,922,542) (595,761) (12,292,495)
------------- ------------- ----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 215,012,058 413,837,358 19,590,644 2,867,087 10,136,855 12,638,065
Dividends reinvested... 1,205,512 2,193,920 228,919 486,495 446,715 12,143,803
Cost of shares
redeemed.............. (230,372,779) (392,509,518) (3,331,058) (5,090,697) (6,547,202) (8,378,319)
------------- ------------- ----------- ----------- ----------- -----------
Change in net assets
from capital
transactions........... (14,155,209) 23,521,760 16,488,505 (1,737,115) 4,036,368 16,403,549
------------- ------------- ----------- ----------- ----------- -----------
Change in net assets.... (14,155,209) 23,521,760 16,112,373 (2,810,342) 16,759,302 17,321,635
NET ASSETS:
Beginning of period.... 181,017,259 157,495,499 34,990,833 37,801,175 81,000,024 63,678,389
------------- ------------- ----------- ----------- ----------- -----------
End of period.......... $ 166,862,050 $ 181,017,259 $51,103,206 $34,990,833 $97,759,326 $81,000,024
============= ============= =========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................. 215,012,058 413,837,358 2,076,722 299,041 795,352 997,947
Reinvested............. 1,205,512 2,193,920 24,160 51,049 35,145 1,001,471
Redeemed............... (230,372,779) (392,509,518) (355,574) (534,677) (511,236) (656,491)
------------- ------------- ----------- ----------- ----------- -----------
Change in shares........ (14,155,209) 23,521,760 1,745,308 (184,587) 319,261 1,342,927
============= ============= =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
STOCK LARGE
APPRECIATION COMPANY
OHIO TAX-FREE BOND FUND BALANCED FUND FUND SELECT FUND
------------------------- ------------------------- -------------------------- ------------
SIX MONTHS SIX MONTHS SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED PERIOD ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1996 1997 1996 1997 1996 1997*
----------- ------------ ----------- ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income
(loss).................. $ 211,455 $ 434,913 $ 158,103 $ 514,538 $ (65,290) $ (462,477) $ (2,358)
Net realized gains
(losses) from investment
transactions............ 393,488 (2,919) 1,280,076 (153,623) 2,235,214 5,645,154 2,725,973
Net change in unrealized
appreciation/depreciation
from investments......... (451,482) (107,900) 230,592 853,589 (823,228) (1,674,745) 2,301,591
----------- ----------- ----------- ----------- ------------ ----------- -----------
Change in net assets
resulting
from operations.......... 153,461 324,094 1,668,771 1,214,504 1,346,696 3,507,932 5,025,206
----------- ----------- ----------- ----------- ------------ ----------- -----------
DISTRIBUTIONS TO INVESTOR A
SHAREHOLDERS:
From net investment
income.................. (288,601) (412,215) (100,684) (346,017) (76,753)
In excess of net
investment income....... (1,775) (289)
From net realized gains
from investments........ (3,106,226)
DISTRIBUTIONS TO INVESTOR B
SHAREHOLDERS:
From net investment
income.................. (26,272) (21,400) (59,336) (168,520)
In excess of net
investment income....... (1,028)
From net realized gains
from investments........ (65,866)
----------- ----------- ----------- ----------- ------------ ---------- -----------
Change in net assets from
shareholder
distributions............ (314,873) (433,615) (160,020) (517,340) (3,172,381) (76,753)
----------- ----------- ----------- ----------- ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued.................. 11,907,778 632,048 1,529,683 11,628,310 1,913,602 3,709,128 29,182,489
Dividends reinvested..... 22,822 26,194 165,154 546,821 2,969,201 95
Cost of shares redeemed.. (14,952,068) (588,738) (3,337,515) (6,534,711) (10,191,994) (16,166,715) (2,941,364)
----------- ----------- ----------- ----------- ------------ ----------- -----------
Change in net assets from
capital transactions..... (3,021,468) 69,504 (1,642,678) 5,640,420 (8,278,392) (9,488,386) 26,241,220
----------- ----------- ----------- ----------- ------------ ----------- -----------
Change in net assets...... (3,182,880) (40,017) (133,927) 6,337,584 (6,931,696) (9,152,835) 31,189,673
NET ASSETS:
Beginning of period...... 11,677,024 11,717,041 20,794,478 14,456,894 31,914,337 41,067,172 --
----------- ----------- ----------- ----------- ------------ ----------- -----------
End of period............ $ 8,494,144 $11,677,024 $20,660,551 $20,794,478 $ 24,982,641 $31,914,337 $31,189,673
=========== =========== =========== =========== ============ =========== ===========
SHARE TRANSACTIONS:
Issued................... 1,143,934 59,532 125,784 1,017,399 202,969 373,503 2,902,527
Reinvested............... 2,182 2,490 13,694 47,842 315,294 8
Redeemed................. (1,443,696) (55,955) (276,190) (571,147) (1,081,817) (1,628,699) (271,932)
----------- ----------- ----------- ----------- ------------ ----------- -----------
Change in shares.......... (297,580) 6,067 (136,712) 494,094 (878,848) (939,872) 2,630,603
=========== =========== =========== =========== ============ =========== ===========
</TABLE>
- -------
* For the period January 2, 1997 (commencement of operations) through June 30,
1997.
See Notes to Financial Statements.
18
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
U.S. Government Securities Money Market Fund
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
----------- ----------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (59.6%):
Federal Farm Credit Bank:
$ 2,000,000 5.55%, 7/1/97........................................ $ 2,000,000
3,000,000 Discount Note, 7/22/97............................... 2,990,410
2,000,000 Discount Note, 7/28/97............................... 1,991,720
Federal Home Loan Bank:
4,500,000 Discount Note, 7/3/97................................ 4,498,623
3,000,000 Discount Note, 9/19/97............................... 2,964,200
Federal Home Loan Mortgage Corp.:
21,558,000 Discount Note, 7/1/97................................ 21,558,000
3,000,000 Discount Note, 7/2/97................................ 2,999,543
7,000,000 Discount Note, 7/3/97................................ 6,997,896
5,000,000 Discount Note, 7/7/97................................ 4,995,492
6,000,000 Discount Note, 7/11/97............................... 5,990,976
4,000,000 Discount Note, 7/24/97............................... 3,986,174
2,000,000 5.84%, 4/8/98........................................ 1,997,332
Federal National Mortgage Assoc.:
4,000,000 Discount Note, 7/18/97............................... 3,989,555
6,000,000 Discount Note, 7/23/97............................... 5,980,163
2,000,000 Discount Note, 8/4/97................................ 1,989,611
4,000,000 5.62%, 8/12/97....................................... 3,999,207
4,000,000 5.27%*, 7/1/97....................................... 3,999,734
2,000,000 5.36%*, 9/2/97....................................... 2,000,000
2,000,000 5.50%, 9/11/97....................................... 2,000,000
1,500,000 5.52%*, 7/12/97...................................... 1,499,868
3,000,000 Discount Note, 10/9/97............................... 2,953,667
2,000,000 5.79%, 10/16/97...................................... 2,000,000
2,000,000 5.65%, 10/20/97...................................... 1,998,922
4,000,000 5.71%, 3/18/98....................................... 3,994,885
------------
Total U.S. Government Agencies 99,375,978
------------
COMMERCIAL PAPER (23.1%):
Building Materials (1.2%):
2,000,000 Sherwin-Williams Co., Discount
Note, 7/21/97....................................... 1,993,855
------------
Chemicals (4.2%):
4,000,000 Monsanto Co., Discount Note, 7/2/97.................. 3,999,381
3,000,000 Monsanto Co., Discount Note, 9/22/97................. 2,961,267
------------
6,960,648
------------
Financial Services (13.0%):
3,000,000 Merrill Lynch, Discount Note, 7/14/97................ 2,993,955
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
----------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Financial Services, continued:
$ 4,000,000 Merrill Lynch, Discount Note, 7/29/97................ $ 3,982,671
3,000,000 Morgan Stanley Group, Discount
Note, 7/22/97....................................... 2,990,252
3,000,000 Morgan Stanley Group, Discount
Note, 8/8/97........................................ 2,982,330
2,745,000 Safeco Corp., Discount Note, 7/11/97................. 2,740,738
2,000,000 Safeco Corp., Discount Note, 7/28/97................. 1,991,570
1,436,000 Sunbelt-Dix, Inc., Discount
Note, 8/26/97....................................... 1,423,558
2,600,000 Sunbelt-Dix, Inc., Discount
Note, 9/9/97........................................ 2,571,841
------------
21,676,915
------------
Utilities--Electric (4.7%):
7,970,000 Baltimore Gas & Electric, Discount
Note, 9/5/97........................................ 7,887,152
------------
Total Commercial Paper 38,518,570
------------
CORPORATE BONDS (0.6%):
Financial Services (0.6%):
1,000,000 General Electric Capital Corp.,
5.32%*, 7/1/97...................................... 999,935
------------
Total Corporate Bonds 999,935
------------
REPURCHASE AGREEMENTS (17.0%):
8,393,000 Dean Witter, 6.10%, 7/1/97, (Collateralized by
$21,893,955 various U.S. Government Agency
Securities, 5.50%-12.00%, 7/25/97-5/1/27, market
value--$8,560,861).................................. 8,393,000
20,000,000 Prudential Funding Corp., 5.90%, 7/1/97,
(Collateralized by $28,283,147 various U.S. Treasury
and U.S. Government Agency Securities, 5.50%-12.50%,
1/1/00-7/20/24, market value--$20,401,006).......... 20,000,000
------------
Total Repurchase Agreements 28,393,000
------------
Total (Cost--$167,287,483)(a) $167,287,483
============
</TABLE>
- -------
The percentages indicated are based on net assets of $166,862,050.
* Variable Rate. Rate presented represents rate in effect at June 30, 1997.
Maturity date reflects the next rate change date.
(a) Cost and value for federal income tax reporting purposes are the same.
See Notes to Financial Statements.
19
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
U.S. Government Income Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
CORPORATE BONDS (29.2%):
Automobile (0.3%):
$ 150,000 General Motors Corp., 9.63%, 12/1/00................. $ 163,313
-----------
Banking (8.7%):
1,000,000 MBNA Master Credit Card Trust, Series 1995-D, Class
A, 6.05%, 11/15/02 ABS.............................. 990,320
500,000 Mellon Capital I, 7.72% 12/1/26, Callable 12/1/06 @
103.86, Guaranteed by Mellon Bank Corp.............. 481,875
1,000,000 Midland Bank PLC, (HSBC), 6.95%, 3/15/11............. 965,000
1,983,187 PNC Mortgage Securities Corp., Series 1997-3, Class
2A3, 7.50%, 5/25/27 CMO............................. 1,999,901
-----------
4,437,096
-----------
Beverages (0.4%):
200,000 PepsiCo, Inc., 7.75%, 10/1/98........................ 203,482
-----------
Computers & Software (0.4%):
200,000 International Business Machines Corp., 9.38%,
11/1/97............................................. 200,418
-----------
Financial Services (14.9%):
200,000 American Express Master Trust, Series 1994-1, Class
A, 7.15%, 8/15/99 ABS............................... 202,910
200,000 Associates Corp., N.A., 5.25%, 3/3/00................ 193,500
1,000,000 Boatmen's Auto Trust, Series 1996-A, Class A3, 6.75%
1/15/03 ABS......................................... 1,009,690
690,000 Discover Card Trust, Series 1992-B, Class A, 6.80%,
6/16/00 ABS......................................... 692,946
1,000,000 First Chicago Master Trust II, Series 1994-L, Class
A, 7.15%, 4/15/01 ABS............................... 1,015,540
200,000 Ford Capital BV, 9.88%, 5/15/02, Guaranteed by Ford
Motor Co............................................ 225,000
500,000 Ford Motor Credit Co., 6.25%, 12/8/05................ 472,500
500,000 Grand Metropolitian Investment Co., 7.45%, 4/15/35,
Putable 4/15/05 @ 100, Guaranteed by Grand
Metropolitan PLC.................................... 517,500
500,000 Lehman Brothers Holdings, 8.50%, 5/1/07.............. 540,000
1,000,000 Premier Auto Trust, Series 1994-4, Class CTFS, 6.85%,
5/22/99 ABS......................................... 1,013,020
650,000 Security Pacific Acceptance Corp., Series 1995-1,
Class A2, 6.70%, 4/10/20 ABS........................ 649,441
797,109 The Money Store Home Equity Trust, Series 1995-A,
Class A2, 7.93%, 2/15/14 CMO........................ 810,787
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services, continued:
$ 250,000 Toyota Motor Credit, 7.13%, 9/26/06, Callable 9/26/99
@ 100............................................... $ 252,500
-----------
7,595,334
-----------
Gas--Transmission (0.7%):
356,000 Trans-Canada Pipelines, 6.77%, 4/30/01............... 357,335
-----------
Retail--Department Stores (0.5%):
250,000 Sears, Roebuck & Co., 9.50%, 6/1/99.................. 264,062
-----------
Steel (0.4%):
200,000 Worthington Industries, Inc. 7.13%, 5/15/06.......... 201,000
-----------
Telecommunication (2.2%):
150,000 Northern Telecom, 8.75%, 6/12/01..................... 160,687
1,000,000 U.S. West Capital Funding, Inc., 6.31%, 11/1/05,
Putable 11/1/00 @ 100............................... 991,250
-----------
1,151,937
-----------
Utility--Electric (0.7%):
200,000 Oklahoma Gas & Electric, 6.25%, 10/15/00............. 198,250
150,000 Pacific Gas & Electric, 8.75%, 1/1/01................ 159,563
-----------
357,813
-----------
Total Corporate Bonds 14,931,790
-----------
MUNICIPAL BONDS (0.4%):
Kentucky (0.4%):
200,000 Covington, IRS Center, 6.00%, 12/1/97**.............. 200,168
-----------
Total Municipal Bonds 200,168
-----------
U.S. GOVERNMENT AGENCIES (55.0%):
Federal Farm Credit:
25,000 7.75%, 12/9/97....................................... 25,236
Federal Home Loan Bank:
200,000 6.50%, 3/2/01, Callable 9/2/97 @ 100................. 200,136
300,000 5.52%*, 7/2/97....................................... 299,970
500,000 7.04%, 5/24/99....................................... 507,450
500,000 6.67%, 4/6/01........................................ 501,735
875,000 6.38%, 4/29/03....................................... 852,250
690,000 9.50%, 2/25/04....................................... 792,134
Federal Home Loan Mortgage Corp.:
800,000 6.30%, 4/8/99, Continuously Callable
@ 100............................................... 798,576
1,343,819 6.00%, 12/1/99, Gold Pool #M80147.................... 1,315,854
1,000,000 6.55%, 1/4/00........................................ 1,004,550
700,000 6.80%, 9/18/02, Continuously Callable
@ 100............................................... 695,093
</TABLE>
Continued
20
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
U.S. Government Income Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal Home Loan Mortgage Corp., continued:
$ 225,000 6.20%, 4/15/03......................................... $ 220,203
200,000 7.98%, 9/8/04, Callable 9/8/97 @ 100................... 200,356
1,000,000 5.90%, 2/14/06......................................... 943,150
436,505 7.50%, 3/15/15, Series 1262,
Class F CMO........................................... 439,308
1,000,000 6.00%, 1/15/18, Series 1527,
Class E CMO........................................... 990,510
1,000,000 7.20%, 6/15/18, Series 1350,
Class F CMO........................................... 1,003,210
Federal National Mortgage Assoc.:
500,000 5.62%, 8/12/97......................................... 500,220
1,000,000 5.33%, 6/26/98, Continuously Callable
@ 100................................................. 995,450
500,000 6.62%, 7/24/98, Callable 7/24/97 @ 100................. 500,360
500,000 9.05%, 4/10/00......................................... 533,115
1,000,000 6.71%, 3/13/02, Callable 3/13/00 @ 100................. 999,000
200,000 7.00%, 8/12/02, Callable 8/25/97 @ 100................. 200,068
200,000 6.95%, 9/10/02, Callable 9/10/97 @ 100................. 199,806
200,000 7.30%, 10/28/02, Callable 10/28/97
@ 100................................................. 200,066
1,181,311 6.00%, 2/1/03, Pool #335463............................ 1,151,471
1,481,719 6.00%, 5/1/03, Pool #347156............................ 1,439,534
625,000 6.38%, 6/25/03, Continuously Callable
@ 100................................................. 608,487
300,000 6.85%, 4/5/04.......................................... 303,291
169,187 6.75%, 8/25/04, Series 1992-152,
Class H CMO........................................... 168,708
1,050,000 8.50%, 2/1/05, Callable 2/1/00 @ 100................... 1,093,292
1,000,000 7.00%, 9/25/05, Series 1992-110,
Class G CMO........................................... 1,002,440
1,000,000 7.55%, 3/27/07, Callable 3/27/00 @ 100................. 1,011,610
1,000,000 7.50%, 3/17/14, Series 1997-39,
Class A CMO........................................... 1,004,223
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal National Mortgage Assoc., continued:
$ 612,199 7.00%, 9/25/19, Series 1991-155,
Class PE CMO........................................ $ 610,840
Government National Mortgage Assoc.:
678,197 8.00%, 5/15/23, Pool #351752......................... 692,866
Private Export Funding Corp.:
1,000,000 6.24%, 5/15/02....................................... 987,500
Student Loan Marketing Assoc.:
1,000,000 6.05%, 9/14/00....................................... 989,310
862,906 5.61%*, 10/25/04, Series 1996-3,
Class A1 ABS........................................ 863,424
Tennessee Valley Authority:
1,250,000 6.24%, 7/15/45, Putable 7/15/01 @ 100, Callable
7/15/20............................................. 1,235,938
-----------
Total U.S. Government Agencies 28,080,740
-----------
U.S. TREASURY NOTES (12.3%):
750,000 5.88%, 2/28/99....................................... 748,230
1,000,000 5.88%, 3/31/99....................................... 997,350
750,000 8.00%, 5/15/01....................................... 791,745
1,000,000 6.63%, 4/30/02....................................... 1,008,880
250,000 6.25%, 2/15/03....................................... 248,068
1,000,000 6.88%, 5/15/06....................................... 1,020,170
1,450,000 7.00%, 7/15/06....................................... 1,490,992
-----------
Total U.S. Treasury Notes 6,305,435
-----------
INVESTMENT COMPANIES (2.4%):
92,187 Dreyfus Treasury Prime Fund.......................... 92,187
1,136,503 Federated U.S. Treasury Services Fund................ 1,136,503
-----------
Total Investment Companies 1,228,690
-----------
Total (Cost--$50,483,675)(a) $50,746,823
===========
</TABLE>
- -------
Percentages indicated are based on net assets of $51,103,206.
*Variable Rate.
**Federally taxable.
ABS--Asset Backed Security
CMO--Collateralized Mortgage Obligation
PLC--Public Liability Company (British)
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 529,636
Unrealized depreciation..................................... (266,488)
---------
Net unrealized appreciation................................. $ 263,148
=========
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Income Equity Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK (99.3%):
Aerospace (2.0%):
45,300 B.F. Goodrich Co....................................... $ 1,962,056
-----------
Apparel (1.8%):
5,700 Intimate Brands, Inc................................... 119,700
81,100 The Limited, Inc....................................... 1,642,275
-----------
1,761,975
-----------
Automobile (0.6%):
3,000 Ford Motor Co.......................................... 113,250
15,200 Volvo AB--ADR.......................................... 406,600
-----------
519,850
-----------
Auto Parts (7.0%):
39,900 Dana Corp.............................................. 1,516,200
62,400 Echlin, Inc............................................ 2,246,400
81,000 ITT Industries, Inc.................................... 2,085,750
18,000 TRW, Inc............................................... 1,022,625
-----------
6,870,975
-----------
Banks (4.1%):
1,550 BankBoston Corp........................................ 111,697
15,800 Bankers' Trust New York Corp........................... 1,374,600
17,200 Central Fidelity Banks, Inc............................ 610,600
35,800 Crestar Financial Corp................................. 1,391,725
15,400 Magna Group, Inc....................................... 535,150
-----------
4,023,772
-----------
Brokers (0.9%):
20,300 A.G. Edwards, Inc...................................... 875,437
-----------
Chemicals (5.7%):
84,500 Ethyl Corp............................................. 781,625
30,000 Hercules, Inc.......................................... 1,436,250
35,100 Imperial Chemical Industries PLC ADR................... 1,996,313
24,200 PPG Industries, Inc.................................... 1,406,625
-----------
5,620,813
-----------
Computers & Software (0.2%):
3,300 Seagate Technology, Inc. (b)........................... 116,119
-----------
Cosmetics (2.1%):
41,200 International Flavors & Fragrances, Inc................ 2,080,600
-----------
Department Stores (4.3%):
44,500 May Department Stores Co............................... 2,102,625
40,100 J.C. Penney Co., Inc................................... 2,092,719
-----------
4,195,344
-----------
Distribution/Wholesale (0.9%):
56,300 Unisource Worldwide, Inc............................... 900,800
-----------
Diversified (0.1%):
1,500 National Service Industries, Inc....................... 73,031
-----------
Electronics (3.4%):
45,400 AMP, Inc............................................... 1,895,450
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Electronics, continued:
26,600 Thomas & Betts Corp.................................... $ 1,398,162
-----------
3,293,612
-----------
Engineering & Construction (1.8%):
42,800 Foster Wheeler Corp.................................... 1,733,400
-----------
Financial Services (3.4%):
74,600 H & R Block, Inc....................................... 2,405,850
14,900 Reuters Holdings PLC................................... 938,700
-----------
3,344,550
-----------
Forest Products (5.0%):
18,600 International Paper Co................................. 903,263
63,300 Louisiana-Pacific Corp................................. 1,337,213
27,700 Rayonier, Inc.......................................... 1,165,131
29,600 Union Camp Corp........................................ 1,480,000
-----------
4,885,607
-----------
Grocery Stores (2.2%):
57,400 Food Lion, Inc.--Class A............................... 410,769
46,800 Giant Food, Inc.--Class A.............................. 1,515,150
5,000 Winn-Dixie Stores, Inc................................. 186,250
-----------
2,112,169
-----------
Health Products/Care (1.5%):
40,300 Bard (C. R.), Inc...................................... 1,463,394
-----------
Industrial Machinery (6.1%):
29,900 Aeroquip-Vickers, Inc.................................. 1,412,775
46,600 General Signal Corp.................................... 2,032,925
18,300 Tecumseh Products Co.--Class A......................... 1,095,713
57,600 Federal Signal Corp.................................... 1,447,200
-----------
5,988,613
-----------
Insurance (2.0%):
25,100 PartnerRe Ltd.......................................... 956,938
10,500 Transamerica Corp...................................... 982,406
-----------
1,939,344
-----------
Manufacturing (2.2%):
92,900 Pall Corp.............................................. 2,159,925
-----------
Metals (2.0%):
27,800 Reynolds Metals Co..................................... 1,980,750
-----------
Mining (1.5%):
48,100 Freeport-McMoRan Copper & Gold, Inc.
Class B............................................... 1,497,112
1,900 Laguna Gold Co. (b).................................... 665
-----------
1,497,777
-----------
Office Equipment & Supplies (1.0%):
31,600 Wallace Computer Services, Inc......................... 949,975
-----------
Oil & Gas Producers (7.6%):
1,300 Amoco Corp............................................. 113,019
</TABLE>
Continued
22
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Income Equity Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Oil & Gas Producers, continued:
32,900 Kerr-McGee Corp........................................ $ 2,085,038
21,800 LG&E Energy Corp....................................... 480,962
69,600 MAPCO, Inc............................................. 2,192,400
14,400 Mobil Corp............................................. 1,006,200
11,600 National Fuel Gas Co................................... 486,475
33,600 Ultramar Diamond Shamrock Corp......................... 1,096,200
-----------
7,460,294
-----------
Oil--International (0.6%):
5,000 Chevron Corp........................................... 369,687
1,800 Exxon Corp............................................. 110,700
575 Royal Dutch Petroleum Co.--New York Shares............. 122,834
-----------
603,221
-----------
Packaged Food (2.8%):
22,300 CPC International, Inc................................. 2,058,569
37,900 Lance, Inc............................................. 724,837
-----------
2,783,406
-----------
Packaging & Container (4.0%):
31,100 Sonoco Products Co..................................... 946,606
15,400 Temple-Inland, Inc..................................... 831,600
45,000 Tenneco, Inc. (b)...................................... 2,128,756
-----------
3,906,962
-----------
Paper (2.6%):
19,100 Consolidated Papers, Inc............................... 1,031,400
49,000 Westvaco Corp.......................................... 1,540,437
-----------
2,571,837
-----------
Pharmaceuticals (2.1%):
59,100 Pharmacia & Upjohn, Inc................................ 2,053,725
-----------
Printing & Publishing (0.1%):
2,000 McGraw-Hill Cos., Inc.................................. 117,625
-----------
Savings & Loans (0.5%):
10,500 First Commerce Corp.................................... 462,000
-----------
Steel (2.0%):
63,500 Allegheny Teledyne, Inc................................ 1,714,500
2,500 Carpenter Technology Corp.............................. 114,375
6,100 Worthington Industries, Inc............................ 111,706
-----------
1,940,581
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Tobacco (0.2%):
5,000 Fortune Brands, Inc................................... $ 186,563
-----------
Tools (1.1%):
26,500 Snap-On, Inc.......................................... 1,043,437
-----------
Transportation--Rail (1.4%):
38,200 Illinois Central Corp................................. 1,334,613
-----------
Utilities--Electric (3.1%):
3,400 CINergy Corp.......................................... 118,363
10,800 DPL, Inc.............................................. 265,950
4,000 KU Energy Corp........................................ 136,500
20,200 Long Island Lighting Co............................... 464,600
2,750 OGE Energy Corp....................................... 125,125
77,400 PacifiCorp............................................ 1,702,800
9,600 SCANA Corp............................................ 238,200
-----------
3,051,538
-----------
Utilities--Gas (2.6%):
27,400 AGL Resources, Inc.................................... 561,700
28,300 Brooklyn Union Gas Co................................. 810,088
17,100 NICOR, Inc............................................ 613,462
15,000 People's Energy Corp.................................. 561,563
-----------
2,546,813
-----------
Utilities--Telecommunications (6.8%):
58,200 Alltel Corp........................................... 1,946,062
3,100 AT&T Corp............................................. 108,694
68,000 Frontier Corp......................................... 1,355,750
34,600 GTE Corp.............................................. 1,518,075
43,500 Southern New England Telecommunications Corp.......... 1,691,063
1,500 US West Communications Group.......................... 56,531
-----------
6,676,175
-----------
Total Common Stock 97,088,678
-----------
INVESTMENT COMPANIES (1.8%):
$ 13,300 Dreyfus Treasury Prime Fund........................... 13,300
164,620 Federated Short Term Government Fund.................. 164,620
1,569,852 Federated U.S. Treasury Services Fund................. 1,569,852
-----------
Total Investment Companies 1,747,772
-----------
Total (Cost--$91,728,691)(a) $98,836,450
===========
</TABLE>
- -------
Percentages indicated are based on net assets of $97,759,326.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................................... $ 8,250,457
Unrealized depreciation................................... (1,142,698)
-----------
Net unrealized appreciation............................... $ 7,107,759
===========
</TABLE>
(b) Non-income producing security.
ADR--American Depository Receipt
PLC--Public Limited Company (British)
See Notes to Financial Statements.
23
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Ohio Tax-Free Bond Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS (89.8%):
Indiana (3.2%):
$250,000 Columbus, Multi-School Building Corp., 7.15%, 1/15/02,
Prerefunded 1/15/01 @ 102............................. $ 275,313
----------
Ohio (83.0%):
100,000 Aurora, City School District, GO, 5.40%, 12/1/06,
Callable 12/1/05 @ 102 FGIC........................... 104,625
230,000 Butler County, Hospital Facilities Revenue, Middletown
Regional Hospital Project, 6.00%, 11/15/10, Callable
5/15/04 @ 101......................................... 241,787
250,000 Cincinnati, GO, 5.25%, 12/1/01......................... 258,438
150,000 Clermont County, Hospital Facilities Revenue, Mercy
Health System, 6.38%, 9/1/01 AMBAC.................... 160,875
250,000 Clermont County, Waterworks Revenue, 6.63%, 12/1/16,
Prerefunded 12/1/01 @ 102 AMBAC....................... 276,562
240,000 Cleveland, Waterworks Revenue, 1st Mortgage, Series F-
92 A, 6.25%, 1/1/05, Prerefunded 1/1/02 @ 102 AMBAC... 261,300
10,000 Cleveland, Waterworks Revenue, 1st Mortgage, Series F-
92 A, 6.25%, 1/1/05, Callable 1/1/02 @ 102 AMBAC...... 10,750
250,000 Columbus, Sewer Revenue, 6.13%, 6/1/03, Callable 6/1/02
@ 102................................................. 270,938
175,000 Edgewood, City School District, GO, 6.30%, 12/1/02,
Callable 12/1/01 @ 101 FGIC........................... 189,656
250,000 Franklin County, Hospital Revenue, Children's Hospital
Project, Series A, 6.40%, 11/1/06, Prerefunded 11/1/01
@ 102................................................. 273,438
155,000 Hamilton County, Sewer System Revenue, Series A, 6.40%,
12/1/03, Callable 6/1/01 @ 102........................ 167,206
95,000 Hamilton County, Sewer System Revenue, Series A, 6.40%,
12/1/03, Prerefunded 6/1/01 @ 102..................... 103,550
80,000 Hamilton County, Sewer System Revenue, Series A, 6.40%,
12/1/04, Prerefunded 6/1/01 @ 102..................... 87,200
250,000 Mahoning County, GO, 5.60%, 12/1/02 MBIA............... 262,500
250,000 Montgomery County, GO, Issue I, Series A, 6.55%,
9/1/06, Prerefunded 9/1/01@ 100....................... 270,000
250,000 Olentangy Local School District, GO, Series A, 5.70%,
12/1/05, Callable 12/1/04 @ 102....................... 265,312
250,000 Pickerington Local School District, GO, 5.55%, 12/1/07,
Callable 12/1/03 @ 102 AMBAC.......................... 261,563
100,000 Springboro, City School District, GO, 6.60%, 12/1/02,
Prerefunded 12/1/01 @ 102............................. 110,125
250,000 State, GO, 5.80%, 8/1/01............................... 263,438
100,000 State, GO, 5.60%, 8/1/02............................... 105,125
100,000 State Building Authority, State Transportation
Facilities, Series A, 7.00%, 9/1/07, Callable 9/1/00 @
102 MBIA.............................................. 108,875
245,000 State Building Authority, Adult Correctional Building
Fund, Series A, 6.13%, 10/1/09, Callable 10/1/03 @
102................................................... 263,987
95,000 State Building Authority, State Facilities, James
Rhodes Project, 6.25%, 6/1/11, Callable 6/1/01 @ 102
MBIA-IBC.............................................. 100,225
250,000 State Higher Educational Facilities Revenue, Series 11-
1990-A, 6.70%, 5/1/02, Callable 5/1/00 @ 102 MBIA..... 268,750
160,000 State Housing Finance Agency, Single Family Mortgage
Revenue, Series D, 6.80%, 9/1/05, Callable 9/1/01 @
102................................................... 168,600
200,000 State Public Facilities Commission, Higher Education
Capital Facilities, Series II-A, 5.20%, 5/1/05 AMBAC.. 205,250
250,000 State Public Facilities Commission, Higher Education
Capital Facilities, Series II-B, 5.70% 11/1/03 AMBAC.. 265,000
175,000 State Public Facilities Commission, Higher Educational
Facilities, 6.50%, 12/1/02, Callable 12/1/99 @ 102
AMBAC................................................. 186,156
200,000 State Water Development Authority Revenue, Pure Water,
Series I, 6.90%, 12/1/98, ETM MBIA.................... 207,750
</TABLE>
Continued
24
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Ohio Tax-Free Bond Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
Ohio, continued
$250,000 State Water Development Authority Revenue, Pure Water,
5.75%, 6/1/03, Callable 12/1/02 @ 102 MBIA............ $ 264,375
250,000 State Water Development Authority Revenue, Pure Water,
5.75%, 6/1/04, Callable 12/1/02 @ 102 MBIA............ 265,000
250,000 State Water Development Authority Revenue, Pure Water,
5.75%, 12/1/05, Callable 12/1/02 @ 102 MBIA........... 264,063
250,000 University of Cincinnati, Series I-1, 6.95%, 6/1/00,
Prerefunded 6/1/99 @ 102.............................. 267,500
250,000 University of Toledo, 7.00%, 6/1/03, Prerefunded 6/1/00
@ 102 MBIA ........................................... 273,125
----------
Total Ohio Municipal Bonds 7,053,044
----------
Oregon (3.6%):
285,000 Tri-County Metropolitan Transportation District, GO,
Light Rail Extension, Series A, 5.70%, 7/1/04,
Callable 7/1/02 @ 101................................. 302,100
----------
Total Municipal Bonds 7,630,457
----------
INVESTMENT COMPANIES (9.5%):
370,495 Dreyfus Municipal Money Market Fund.................... 370,495
433,900 Federated Tax Free Money Market Fund................... 433,900
----------
Total Investment Companies 804,395
----------
Total (Cost--$7,971,128)(a) $8,434,852
==========
</TABLE>
- -------
Percentages indicated are based on net assets of $8,494,144.
(a)Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $463,724
Unrealized depreciation...................................... 0
--------
Net unrealized appreciation.................................. $463,724
========
</TABLE>
AMBAC--Insured by AMBAC Indemnity Corp.
ETM--Escrowed to Maturity
FGIC--Insured by Financial Guaranty Insurance Corp.
GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Assoc.
See Notes to Financial Statements.
25
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Balanced Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK (58.4%):
Aerospace (0.9%):
3,400 Boeing Co............................................... $ 180,413
-----------
Agricultural Machinery (1.8%):
6,800 Deere & Co.............................................. 373,150
-----------
Apparel (0.9%):
3,100 Nike, Inc., Class B..................................... 180,963
-----------
Automobile (0.8%):
4,350 Ford Motor Co........................................... 164,213
-----------
Banks (3.6%):
4,600 BankBoston Corp......................................... 331,488
1,500 Chase Manhattan Corp.................................... 145,594
2,650 J.P. Morgan & Co........................................ 276,594
-----------
753,676
-----------
Chemicals (0.9%):
3,000 E. I. du Pont de Nemours & Co........................... 188,625
-----------
Confections & Beverages (1.8%):
4,000 Anheuser-Busch Cos., Inc................................ 167,750
2,850 Coca-Cola Co............................................ 198,788
-----------
366,538
-----------
Computers & Software (10.4%):
9,400 Cisco Systems, Inc. (b)................................. 630,975
4,000 Compaq Computer Corp. (b)............................... 397,000
4,300 Computer Associates International, Inc.................. 239,456
4,600 Electronic Data Systems Corp............................ 188,600
3,000 Intel Corp.............................................. 425,437
1,200 Microsoft Corp. (b)..................................... 151,650
7,800 Silicon Graphics, Inc. (b).............................. 117,000
-----------
2,150,118
-----------
Diversified (1.8%):
5,600 General Electric Co..................................... 366,100
-----------
Finance--Mortgage Loan/Banker (1.5%):
7,000 Federal National Mortgage Assoc......................... 305,375
-----------
Financial Services (1.7%):
2,750 Student Loan Marketing Assoc............................ 349,250
-----------
Food Processing (1.1%):
10,000 Archer Daniels Midland Co............................... 235,000
-----------
Health Products/Care (2.0%):
7,400 Columbia/HCA Healthcare Corp............................ 290,912
2,000 Johnson & Johnson....................................... 128,750
-----------
419,662
-----------
Household Products/Wares (2.1%):
3,000 Procter & Gamble Co..................................... 423,750
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED :
Industrial Machinery (0.9%):
1,700 Caterpillar, Inc........................................ $ 182,537
-----------
Instruments--Scientific (1.5%):
7,200 Millipore Corp.......................................... 316,800
-----------
Insurance (1.1%):
4,500 Sunamerica, Inc......................................... 219,375
-----------
Oil & Gas Producers (1.0%):
2,000 Texaco, Inc............................................. 217,500
-----------
Oil--International (5.1%):
4,600 Amoco Corp.............................................. 399,912
5,000 British Petroleum PLC, ADR.............................. 374,375
4,600 Exxon Corp.............................................. 282,900
-----------
1,057,187
-----------
Pharmaceuticals (4.4%):
6,500 Bristol-Myers Squibb Co................................. 526,500
2,400 Merck & Co., Inc........................................ 248,400
1,200 Pfizer, Inc............................................. 143,400
-----------
918,300
-----------
Printing & Publishing (1.1%):
4,500 New York Times Co--Class A.............................. 227,250
-----------
Real Estate (1.5%):
17,000 Health & Retirement Properties Trust.................... 319,812
-----------
Restaurants (1.0%):
8,150 Wendy's International, Inc.............................. 211,391
-----------
Rubber & Tires (0.8%):
2,550 Goodyear Tire & Rubber Co............................... 161,447
-----------
Steel (0.7%):
8,000 Worthington Industries, Inc............................. 146,500
-----------
Tobacco (1.7%):
7,800 Philip Morris Cos., Inc................................. 346,125
-----------
Tools (1.0%):
5,400 Black & Decker Corp..................................... 200,812
-----------
Utilities--Electric (2.1%):
6,000 CINergy Corp............................................ 208,875
4,500 Duke Power Co........................................... 215,719
-----------
424,594
-----------
Utilities--Telecommunications (3.2%):
2,300 Ameritech Corp.......................................... 156,256
4,400 AT&T Corp............................................... 154,275
5,400 Cincinnati Bell, Inc.................................... 170,100
</TABLE>
Continued
26
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Balanced Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Utilities--Telecommunications, continued:
4,300 GTE Corp............................................... $ 188,662
-----------
669,293
-----------
Total Common Stock 12,075,756
-----------
CORPORATE BONDS (3.7%):
Brokers (0.8%):
$163,000 Merrill Lynch & Co., Inc., 9.00%, 5/1/98............... 167,130
-----------
Department Stores (1.0%):
200,000 Sears, Roebuck & Co., 5.82%, 2/22/99................... 199,000
-----------
Tobacco (1.9%):
382,000 Philip Morris Cos., Inc., 8.38%, 6/1/01................ 404,443
-----------
Total Corporate Bonds 770,573
-----------
U.S. GOVERNMENT AGENCIES (10.9%):
Federal Home Loan Bank:
100,000 5.97%, 12/14/98........................................ 100,023
500,000 6.25%,7/16/99.......................................... 500,635
200,000 6.11%, 1/18/01......................................... 196,750
300,000 6.04%, 2/14/01......................................... 294,543
-----------
1,091,951
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal Home Loan Mortgage Assoc.:
$ 410,000 5.69%, 11/29/00, continuously callable................ $ 398,983
-----------
FEDERAL NATIONAL MORTGAGE ASSOC.:
300,000 6.95%, 11/13/06....................................... 297,555
-----------
Government National Mortgage Assoc.:
468,654 6.50%, 11/15/10....................................... 462,107
-----------
Total U.S. Government Agencies 2,250,596
-----------
U.S. TREASURY NOTES (23.8%):
1,000,000 5.75%, 12/31/98....................................... 996,890
50,000 5.88%, 2/28/99........................................ 498,820
700,000 6.25%, 5/31/00........................................ 700,133
300,000 6.25%, 10/31/01....................................... 298,431
300,000 6.38%, 8/15/02........................................ 299,844
500,000 5.75%, 8/15/03........................................ 482,665
600,000 6.88%, 5/15/06........................................ 612,102
1,000,000 6.53%, 7/15/06........................................ 1,028,270
-----------
Total U.S. Treasury Notes 4,917,155
-----------
INVESTMENT COMPANIES (2.7%):
2,028 Dreyfus Treasury Prime Fund........................... 2,028
558,140 Federated U.S. Treasury Services Fund................. 558,140
-----------
Total Investment Companies 560,168
-----------
Total (Cost--$18,290,057)(a) $20,574,248
===========
</TABLE>
- -------
The percentages indicated are based on net assets of $20,660,551.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................... $2,464,438
Unrealized depreciation.................................... (180,247)
----------
Net unrealized appreciation................................ $2,284,191
==========
</TABLE>
(b) Non-income producing security.
ADR--American Depository Receipt
PLC--Public Liability Company
See Notes to Financial Statements.
27
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Stock Appreciation Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK (96.3%):
Apparel (3.2%):
10,000 Intimate Brands, Inc................................... $ 210,000
12,500 Jones Apparel Group, Inc. (b).......................... 596,875
-----------
806,875
-----------
Auto Parts (1.7%):
16,000 Gentex Corp. (b)....................................... 316,000
10,000 Simpson Industries, Inc................................ 106,250
-----------
422,250
-----------
Banks (4.0%):
14,400 Colonial BancGroup, Inc................................ 349,200
4,000 HUBCO, Inc............................................. 116,000
14,000 Sterling Bancorp....................................... 260,750
6,000 Vermont Financial Services Corp........................ 282,000
-----------
1,007,950
-----------
Building--Mobile Home (1.4%):
20,000 Coachmen Industries, Inc............................... 342,500
-----------
Building Materials (1.1%):
8,600 Congoleum Corp.--Class A (b)........................... 101,050
4,500 Medusa Corp............................................ 172,688
-----------
273,738
-----------
Chemicals (1.7%):
6,000 Cabot Corp............................................. 170,250
27,000 CFC International, Inc. (b)............................ 263,250
-----------
433,500
-----------
Computer, Software & Services (18.6%):
3,200 Adaptec, Inc. (b)...................................... 111,200
10,000 Cisco Systems, Inc. (b)................................ 671,250
6,000 Compuware Corp. (b).................................... 286,500
3,500 Comverse Technology, Inc. (b).......................... 182,000
8,000 Dell Computer Corp. (b)................................ 939,500
6,000 Gateway 2000, Inc. (b)................................. 194,625
9,900 Microsoft Corp. (b).................................... 1,251,113
10,000 Nimbus CD International, Inc. (b)...................... 110,000
10,000 Structural Dynamics Research Corp. (b)................. 262,500
7,000 Sun Microsystems, Inc. (b)............................. 260,531
40,000 The Learning Co., Inc. (b)............................. 375,000
-----------
4,644,219
-----------
Cosmetics & Toiletries (3.3%):
15,000 Nature's Sunshine Products, Inc........................ 271,875
20,000 NBTY, Inc. (b)......................................... 560,000
-----------
831,875
-----------
Data Processing (1.0%):
5,000 National Data Corp..................................... 216,562
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Direct Marketing (1.3%):
7,000 Catalina Marketing Corp. (b)........................... $ 336,875
-----------
Distribution/Wholesaling (2.3%):
18,000 Tech Data Corp. (b).................................... 565,875
-----------
Electrical (1.5%):
15,000 Chicago Miniature Lamp, Inc. (b)....................... 373,125
-----------
Electronics (0.3%):
5,000 ADFlex Solutions, Inc. (b)............................. 75,000
-----------
Environmental Control (1.6%):
15,000 U.S. Filter Corp. (b).................................. 408,750
-----------
Household Products/Wares (0.8%):
20,000 USA Detergents, Inc. (b)............................... 205,000
-----------
Human Resources (0.8%):
10,000 Alternative Resources, Inc. (b)........................ 203,750
-----------
Industrial Machinery (2.1%):
8,000 AGCO Corp.............................................. 287,500
9,900 Federal Signal Corp.................................... 248,738
-----------
536,238
-----------
Instruments--Scientific (1.2%):
6,600 Millipore Corp......................................... 290,400
-----------
Insurance (0.7%):
4,000 Life Re Corp........................................... 186,500
-----------
Manufacturing (0.3%):
5,000 Optical Coating Laboratories, Inc...................... 67,500
-----------
Medical--Instruments/Products (4.4%):
20,700 Physio-Control International Corp. (b)................. 310,500
11,000 Steris Corp. (b)....................................... 411,125
10,000 U.S. Surgical Corp..................................... 372,500
-----------
1,094,125
-----------
Motorcycles (1.9%):
10,000 Harley-Davidson, Inc................................... 479,375
-----------
Oil Equipment, Wells & Services (5.8%):
12,000 ENSCO International, Inc. (b).......................... 633,000
25,000 Global Marine, Inc. (b)................................ 581,250
12,000 Tuboscope Vetco International Corp. (b)................ 238,500
-----------
1,452,750
-----------
Pharmaceuticals (1.5%):
8,000 Jones Medical Industries, Inc.......................... 380,000
-----------
Power Conversion--Supply Equipment (1.4%):
18,000 American Power Conversion Corp. (b).................... 342,000
-----------
</TABLE>
Continued
28
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Stock Appreciation Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Printing & Publishing (0.5%):
5,000 World Color Press, Inc. (b)............................ $ 118,750
-----------
Real Estate (14.1%):
4,200 American Health Properties, Inc........................ 105,525
4,200 Amli Residential Properties Trust...................... 98,700
3,000 Cali Realty Corp....................................... 102,000
3,200 CarrAmerica Realty Corp................................ 92,000
2,800 Chelsea GCA Realty, Inc................................ 106,400
10,000 Duke Realty Investments, Inc........................... 405,000
3,500 Essex Property Trust, Inc.............................. 112,437
2,700 FelCor Suite Hotels, Inc............................... 100,575
3,700 Franchise Finance Corp. of America..................... 96,431
2,800 Health Care Property Investors, Inc.................... 98,700
8,000 Health & Retirement Property Trust..................... 150,500
2,900 Highwood Properties, Inc............................... 92,800
4,000 JP Realty, Inc......................................... 108,500
10,000 Jameson Inns, Inc...................................... 117,500
4,500 Manufactured Home Communities, Inc..................... 103,781
8,000 National Golf Properties, Inc.......................... 278,000
3,000 OMEGA Healthcare Investors, Inc........................ 98,063
5,000 Pacific Gulf Properties, Inc........................... 110,000
3,000 Realty Income Corp..................................... 78,750
4,400 Reckson Associates Realty Corp......................... 101,200
4,200 Security Capital Pacific Trust......................... 96,075
3,300 Shurgard Storage Centers, Inc.......................... 92,400
3,200 Sovran Self Storage, Inc............................... 93,600
4,450 Storage Trust Realty................................... 117,925
8,500 Summit Properties, Inc................................. 175,313
5,000 Tanger Factory Outlet Centers, Inc..................... 134,375
3,400 Urban Shopping Centers, Inc............................ 108,375
6,000 Walden Residential Properties, Inc..................... 153,750
-----------
3,528,675
-----------
Recreational Equipment (1.4%):
10,000 Callaway Golf Co....................................... 355,000
-----------
Restaurant (2.0%):
15,000 Boston Chicken, Inc. (b)............................... 210,000
11,000 Wendy's International, Inc............................. 285,312
-----------
495,312
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Savings & Loans (2.4%):
7,000 Astoria Financial Corp................................. $ 332,500
5,000 Charter One Financial, Inc............................. 269,375
-----------
601,875
-----------
Sporting Goods (1.2%):
17,000 Cannondale Corp. (b)................................... 301,750
-----------
Steel (2.9%):
9,000 Carpenter Technology Corp.............................. 411,750
16,400 Worthington Industries, Inc............................ 300,325
-----------
712,075
-----------
Telecommunications (3.2%):
16,000 Aspect Telecommunications Corp. (b).................... 356,000
20,000 LCI International, Inc. (b)............................ 437,500
-----------
793,500
-----------
Tools (1.2%):
8,000 Black & Decker Corp.................................... 297,500
-----------
Tobacco (0.5%):
5,000 DIMON, Inc............................................. 132,500
-----------
Transportation--Airlines (1.1%):
10,000 Comair Holdings, Inc................................... 276,875
-----------
Utilities--Electric (1.9%):
10,000 Commonwealth Energy System............................. 239,374
4,900 OGE Energy Corp........................................ 222,950
-----------
462,324
-----------
Total Common Stock 24,052,868
-----------
INVESTMENT COMPANIES (4.0%):
$272,376 Dreyfus Treasury Prime Fund............................ 272,376
738,728 Federated U.S. Treasury Services #125.................. 738,728
-----------
Total Investment Companies 1,011,104
-----------
Total (Cost--$20,444,122)(a) $25,063,972
===========
</TABLE>
- -------
The percentages indicated are based on net assets of $24,982,641.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $5,589,845
Unrealized depreciation..................................... (969,995)
----------
Net unrealized appreciation................................. $4,619,850
==========
</TABLE>
(b) Non-income producing security.
See Notes to Financial Statements.
29
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Large Company Select Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK (94.5%):
Aerospace (2.3%):
13,600 Boeing Co............................................... $ 721,650
-----------
Agricultural Machinery (3.0%):
17,000 Deere & Co.............................................. 932,875
-----------
Apparel (0.5%):
2,500 Nike, Inc.--Class B..................................... 145,938
-----------
Automobile (1.7%):
14,150 Ford Motor Co........................................... 534,163
-----------
Banks (3.6%):
5,400 BankAmerica Corp........................................ 348,638
4,200 BankBoston Corp......................................... 302,662
900 Citicorp................................................ 108,506
5,200 KeyCorp................................................. 290,550
1,600 Mellon Bank Corp........................................ 72,200
-----------
1,122,556
-----------
Building & Construction (0.9%):
3,800 Armstrong World Industries, Inc......................... 278,825
-----------
Confections & Beverages (3.1%):
11,600 Coca-Cola Co............................................ 809,100
3,000 PepsiCo, Inc............................................ 112,687
1,050 So. African Brewers Ltd................................. 31,196
-----------
952,983
-----------
Computers & Software (15.4%):
11,850 Cisco Systems, Inc. (b)................................. 795,431
2,150 Compaq Computer Corp. (b)............................... 213,388
10,450 Computer Associates International, Inc.................. 581,934
11,500 Electronic Data Systems Corp............................ 471,500
9,000 Intel Corp.............................................. 1,276,313
600 International Business Machines Corp.................... 54,112
10,000 Hewlett-Packard Co...................................... 560,000
6,200 Microsoft Corp. (b)..................................... 783,525
2,701 NCR Corp. (b)........................................... 80,355
-----------
4,816,558
-----------
Cosmetics & Toiletries (3.2%):
1,600 Avon Products, Inc...................................... 112,900
9,200 Gillette Co............................................. 871,700
-----------
984,600
-----------
Diversified (3.4%):
16,100 General Electric Co..................................... 1,052,537
-----------
Electrical (1.1%):
6,200 Emerson Electric Co..................................... 341,387
-----------
Entertainment (1.4%):
5,600 The Walt Disney Co...................................... 449,400
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Finance--Mortgage Loan/Banker (2.1%):
15,200 Federal National Mortgage Assoc......................... $ 663,100
-----------
Financial Services (4.0%):
11,600 American Express Co..................................... 864,200
2,900 Student Loan Marketing Assoc............................ 368,300
-----------
1,232,500
-----------
Food Processing (0.8%):
10,000 Archer-Daniels-Midland Co............................... 235,000
-----------
Health Products/Care (0.3%):
1,200 Johnson & Johnson....................................... 77,250
-----------
Household Products/Wares (2.6%):
5,800 Procter & Gamble Co..................................... 819,250
-----------
Industrial Machinery (1.0%):
3,000 Caterpillar, Inc........................................ 322,125
-----------
Instruments--Scientific (1.4%):
9,850 Millipore Corp.......................................... 433,400
-----------
Insurance (7.0%):
6,050 American International Group, Inc....................... 903,719
3,200 Chubb Corp.............................................. 214,000
4,800 Marsh & McLennan Cos., Inc.............................. 342,600
7,100 Sunamerica, Inc......................................... 346,125
5,999 Travelers Group, Inc.................................... 378,312
-----------
2,184,756
-----------
Mining (1.7%):
7,100 Potash Corp. of Saskatchewan, Inc....................... 532,944
-----------
Oil & Gas Producers (2.5%):
3,100 Amoco Corp.............................................. 269,506
7,200 Mobil Corp.............................................. 503,100
-----------
772,606
-----------
Oil--International (4.4%):
11,600 Exxon Corp.............................................. 713,400
3,100 Royal Dutch Petroleum--NY Shares........................ 662,238
-----------
1,375,638
-----------
Oil Equipment, Wells & Services (1.7%):
4,300 Schlumberger Ltd........................................ 537,500
-----------
Packaged Foods (2.3%):
7,800 CPC International, Inc.................................. 720,037
-----------
Pharmaceuticals (4.6%):
7,600 Merck & Co., Inc........................................ 786,600
5,400 Pfizer, Inc............................................. 645,300
-----------
1,431,900
-----------
</TABLE>
Continued
30
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
Large Company Select Fund
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Printing & Publishing (1.3%):
4,000 Gannett Co., Inc........................................ $ 395,000
-----------
Real Estate (1.6%):
10,500 Summit Properties, Inc.................................. 216,563
11,000 Walden Residential Properties, Inc...................... 281,875
-----------
498,438
-----------
Restaurants (2.0%):
24,325 Wendy's International, Inc.............................. 630,930
-----------
Retail (0.7%):
6,600 Wal-Mart Stores, Inc.................................... 223,162
-----------
Rubber & Tires (2.7%):
13,500 Goodyear Tire & Rubber Co............................... 854,718
-----------
Steel (1.0%):
3,000 Carpenter Technology Corp............................... 137,250
10,250 Worthington Industries, Inc............................. 187,703
-----------
324,953
-----------
Telecommunications (1.0%):
3,200 Ericsson (L.M.) Telefonaktiebolaget--ADR................ 126,000
2,656 Lucent Technologies, Inc................................ 191,398
-----------
317,398
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK, CONTINUED:
Tobacco (1.1%):
7,800 Philip Morris Cos., Inc................................ $ 346,125
-----------
Tools (0.5%):
4,000 Black & Decker Corp.................................... 148,750
-----------
Transportation--Rail (0.5%):
6,000 Canadian Pacific Ltd................................... 170,625
-----------
Utility--Gas & Electric (2.1%):
11,000 CINergy Corp........................................... 382,938
1 El Paso Natural Gas Co................................. 28
6,000 OGE Energy Corp........................................ 273,000
-----------
655,966
-----------
Utility--Telecommunications (4.0%):
12,800 AT&T Corp.............................................. 448,800
8,600 Cincinnati Bell, Inc................................... 270,900
11,700 GTE Corp............................................... 513,337
-----------
1,233,037
-----------
Total Common Stock 29,470,580
-----------
INVESTMENT COMPANIES (5.4%):
$ 579,262 Dreyfus Treasury Prime Fund............................ 579,262
1,110,921 Federated U.S. Treasury Services #125.................. 1,110,921
-----------
Total Investment Companies 1,690,183
-----------
Total (Cost--$16,266,787)(a) $31,160,763
===========
</TABLE>
- -------
The percentages indicated are based on net assets of $31,189,673.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................... $15,022,873
Unrealized depreciation.................................... (128,897)
-----------
Net unrealized appreciation................................ $14,893,976
===========
</TABLE>
(b) Non-income producing security.
See Notes to Financial Statements.
31
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
1. ORGANIZATION:
The Riverfront Funds, Inc. (the "Fund"), was organized as a Maryland
corporation on March 27, 1990, and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Fund is authorized to issue seven series of shares of
capital stock, representing interests in different portfolios of securities
as follows: The Riverfront U.S. Government Securities Money Market Fund, The
Riverfront U.S. Government Income Fund, The Riverfront Income Equity Fund,
The Riverfront Ohio Tax-Free Bond Fund, The Riverfront Balanced Fund
(formerly the Riverfront Flexible Growth Fund), The Riverfront Stock
Appreciation Fund and The Riverfront Large Company Select Fund (each, a
"Portfolio"; and collectively, the "Portfolios").
The investment objective of the U.S. Government Securities Money Market Fund
is to seek current income from U.S. Government short-term securities while
preserving capital and maintaining liquidity. The investment objective of the
U.S. Government Income Fund is to seek a high level of current income,
consistent with preservation of capital, by investing primarily in securities
issued or guaranteed by the U.S. Government, its agencies and
instrumentalities and in high quality fixed rate and adjustable rate
mortgaged back securities and other asset-backed securities. The investment
objective of the Income Equity Fund is to seek a high level of investment
income, with captial apprecitation as a secondary objective, through
investment primarily in income-producing equity securities of U.S. issuers.
The investment objective of the Ohio Tax-Free Bond Fund is to seek income
exempt from federal and Ohio state income taxes and preservation of capital.
The investment objective of the Balanced Fund is to seek long-term growth of
capital with some current income as a secondary objective. The investment
objective of the Stock Appreciation Fund is to seek capital growth. The
investment objective of the Large Company Select Fund is to seek long-term
growth of capital with some current income as a secondary objective.
The Fund is authorized to issue 3,000,000,000 shares with a par value of
$.001 per share. Sales of shares of the Portfolios may be made to customers
of The Provident Bank ("Provident") and its affiliates, to all accounts of
correspondent banks of Provident and to the general public.
The U.S. Government Income Fund, the Income Equity Fund, the Ohio Tax-Free
Bond Fund, the Balanced Fund, the Stock Appreciation Fund and the Large
Company Select Fund (collectively, "the variable net asset value funds") each
offers two share classes: Investor A Shares and Investor B Shares. The U.S.
Government Securities Money Market Fund (the "money market fund") offers only
the Investor A Shares. Investor A Shares of the variable net asset value
funds are subject to initial sales charges imposed at the time of purchase,
in accordance with the Portfolios' prospectus. Certain redemptions of the
Investor B Shares of the variable net asset value funds made within six years
of purchase are subject to varying contingent deferred sales charges in
accordance with the Portfolios' prospectus. Each share class has identical
rights and privileges, except with respect to distribution and shareholder
services (12b-1) fees paid by each share class, voting rights on matters
affecting a single share class, and the exchange privileges of each share
class.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Portfolios in preparation of their financial statements. The 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
Continued
32
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses for the period. Actual results could
differ from those estimates.
SECURITIES VALUATION:
Investments of the money market fund are valued at amortized cost. Under
the amortized cost method, discount or premium is amortized on a constant
basis to the maturity of the security. In addition, the money market fund
may not (a) purchase any instrument with a remaining maturity greater than
397 days unless such investment is subject to a demand feature, or (b)
maintain a dollar-weighted-average portfolio maturity which exceeds 90
days.
Investments in common and preferred stocks, corporate bonds, commercial
paper and U.S. Government securities of the variable net asset value funds
are valued at their market values determined on the basis of the closing
sale prices on the principal exchange (closing sales prices on the over-
the-counter National Market System) in which such securities are normally
traded, or in the absence of any sales, at the mean of the latest available
bid and asked quotations on such exchange. Municipal bonds are valued by
using market quotations or independent services that use prices provided by
market makers or estimates of market values obtained from yield data
relating to instruments or securities with similar characteristics. Short-
term investments maturing in 60 days or less are valued at amortized cost,
which approximates market value. Investments in investment companies are
valued at their net asset values as reported by such investment companies.
Other securities for which quotations are not readily available are valued
at their fair value as determined in good faith by the investment adviser
under the supervision of the Fund's Board of Directors. The differences
between the cost and market values of investments held by the variable net
asset value funds are reflected as either unrealized appreciation or
depreciation.
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Realized gains or losses from sales of securities are determined on an
identified cost basis.
REPURCHASE AGREEMENTS:
The Portfolios may acquire repurchase agreements from financial
institutions such as banks and broker dealers which Provident, as
investment adviser or the Portfolio's sub-investment adviser, as
applicable, deems creditworthy under guidelines approved by the Board of
Directors, subject to the seller's agreement to repurchase such securities
at a mutually agreed-upon date and price. The repurchase price generally
equals the price paid by each Portfolio plus interest negotiated on the
basis of current short-term rates, which may be more or less than the rate
on the underlying portfolio securities. The seller, under a repurchase
agreement, is required to maintain the value of collateral held pursuant to
the agreement at not less than the repurchase price (including accrued
interest). Securities subject to repurchase agreements are held by each
Portfolio's custodian or another qualified custodian or in the Federal
Reserve/Treasury book-entry system. Repurchase agreements are considered to be
loans by the Portfolios under the 1940 Act.
Continued
33
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the money market fund. Dividends from net investment income are
declared and generally paid monthly for each variable net asset value fund
with the exception of the Stock Appreciation Fund which declares and pays any
dividends semi annually.
Distributable net realized capital gains, if any, are declared and
distributed at least annually. Any taxable distributions declared in
December and paid in the following fiscal year will be taxable to
shareholders in the year declared.
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the composition of net assets
based on their federal tax-basis treatment; temporary differences do not
require classification. Dividends and distributions to shareholders which
exceed net investment income and net realized capital gains for financial
reporting purposes are reported as dividends in excess of net investment
income or distributions in excess of net realized gains. To the extent they
exceed net investment income and net realized gains for tax purposes, they
are reported as distributions of capital.
FEDERAL INCOME TAXES:
It is the policy of the Portfolios to comply with all requirements of the
Internal Revenue Code (the "Code") applicable to regulated investment
companies and to distribute substantially all of their taxable income to
their shareholders, therefore, no federal tax provision was required.
EXPENSE ALLOCATIONS:
Expenses that are directly related to one of the Portfolios are charged
directly to that Portfolio. Other operating expenses of the Fund are
prorated to the Portfolios, generally on the basis of relative net assets.
Fees paid under a Portfolio's shareholder servicing or distribution plans
are borne by the specific class of shares to which they apply.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six months ended June 30, 1997 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
U.S. Government Income Fund........................... $18,330,989 $16,645,985
Income Equity Fund.................................... $69,788,180 $64,769,058
Ohio Tax-Free Bond Fund............................... $ 0 $13,476,041
Balanced Fund......................................... $13,315,547 $12,976,732
Stock Appreciation Fund............................... $12,593,394 $19,170,213
Large Company Select Fund............................. $ 4,221,864 $ 6,808,227
</TABLE>
Continued
34
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
4. CAPITAL SHARE TRANSACTIONS:
Transactions in capital shares for the portfolios with multiple classes of
shares were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
INCOME FUND INCOME EQUITY FUND
----------------------------- -----------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued............... $19,371,293 $ 2,494,252 $ 4,647,935 $ 8,709,609
Dividends reinvested.. 199,083 440,531 424,700 10,845,880
Shares redeemed....... (3,237,658) (4,741,047) (5,788,312) (7,958,218)
----------- ----------- ----------- -----------
Change in net assets
from Investor share
transactions......... $16,332,718 $(1,806,264) $ (715,677) $11,597,271
=========== =========== =========== ===========
Investor B Shares:
Proceeds from shares
issued............... $ 219,351 $ 372,835 $ 5,488,920 $ 3,928,456
Dividends reinvested.. 29,836 45,964 22,015 1,297,923
Shares redeemed....... (93,400) (349,650) (758,890) (420,101)
----------- ----------- ----------- -----------
Change in net assets
from Investor share
transactions......... $ 155,787 $ 69,149 $ 4,752,045 $ 4,806,278
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................ 2,055,880 264,167 368,792 680,679
Reinvested............ 21,316 46,735 33,439 898,119
Redeemed.............. (346,711) (502,013) (452,534) (624,637)
----------- ----------- ----------- -----------
Change in Investor A
Shares............... 1,730,485 (191,111) (50,303) 954,161
=========== =========== =========== ===========
Investor B Shares:
Issued................ 20,842 34,874 426,560 317,268
Reinvested............ 2,844 4,314 1,706 103,352
Redeemed.............. (8,863) (32,664) (58,702) (31,854)
----------- ----------- ----------- -----------
Change in Investor B
Shares............... 14,823 6,524 369,564 388,766
=========== =========== =========== ===========
</TABLE>
Continued
35
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
4. CAPITAL SHARE TRANSACTIONS, CONTINUED:
<TABLE>
<CAPTION>
OHIO TAX-FREE FUND BALANCED FUND
----------------------------- -----------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued............... $ 11,566,283 $ 39,457 $ 673,769 $ 5,979,948
Dividends reinvested.. 3,146 6,134 115,388 318,997
Shares redeemed....... (14,924,002) (340,435) (2,390,772) (5,316,451)
------------ --------- ----------- -----------
Change in net assets
from Investor share
transactions......... $ (3,354,573) $(294,844) $(1,601,615) $ 982,494
============ ========= =========== ===========
Investor B Shares:
Proceeds from shares
issued............... $ 341,495 $ 592,591 $ 855,914 $ 5,648,362
Dividends reinvested.. 19,676 20,060 49,766 227,824
Shares redeemed....... (28,066) (248,303) (946,743) (1,218,260)
------------ --------- ----------- -----------
Change in net assets
from Investor share
transactions......... $ 333,105 $ 364,348 $ (41,063) $ 4,657,926
============ ========= =========== ===========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................ 1,111,475 3,737 56,071 531,651
Reinvested............ 306 593 9,676 28,295
Redeemed.............. (1,441,047) (32,383) (199,937) (466,939)
------------ --------- ----------- -----------
Change in Investor A
Shares............... (329,266) (28,053) (134,190) 93,007
============ ========= =========== ===========
Investor B Shares:
Issued................ 32,459 55,795 69,713 485,748
Reinvested............ 1,876 1,897 4,018 19,547
Redeemed.............. (2,649) (23,572) (76,253) (104,208)
------------ --------- ----------- -----------
Change in Investor B
Shares............... 31,686 34,120 (2,522) 401,087
============ ========= =========== ===========
</TABLE>
Continued
36
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
4. CAPITAL SHARE TRANSACTIONS, CONTINUED:
<TABLE>
<CAPTION>
LARGE COMPANY
STOCK APPRECIATION FUND SELECT FUND
----------------------------- -------------
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, YEAR ENDED JUNE 30,
1997 DECEMBER 31, 1997 *
(UNAUDITED) 1996 (UNAUDITED)
---------------- ------------ -------------
<S> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares issued... $ 1,618,266 $ 3,225,171 $28,683,651
Dividends reinvested.......... 0 2,903,615 95
Shares redeemed............... (10,091,113) (16,060,775) (2,936,034)
------------ ------------ -----------
Change in net assets from
Investor share transactions.. $ (8,472,847) $ (9,931,989) $25,747,712
============ ============ ===========
Investor B Shares:
Proceeds from shares issued... $ 295,336 $ 483,957 $ 498,838
Dividends reinvested.......... 0 65,586 0
Shares redeemed............... (100,881) (105,940) (5,330)
------------ ------------ -----------
Change in net assets from
Investor share transactions.. $ 194,455 $ 443,603 $ 493,508
============ ============ ===========
SHARE TRANSACTIONS:
Investor A Shares:
Issued........................ 172,193 307,057 2,857,580
Reinvested.................... 0 308,567 8
Redeemed...................... (1,071,386) (1,618,575) (271,480)
------------ ------------ -----------
Change in Investor A Shares... (899,193) (1,002,951) 2,586,108
============ ============ ===========
Investor B Shares:
Issued........................ 30,776 66,446 44,947
Reinvested.................... 0 6,727 0
Redeemed...................... (10,431) (10,094) (452)
------------ ------------ -----------
Change in Investor B Shares... 20,345 63,079 44,495
============ ============ ===========
</TABLE>
- -------
* For the period January 2, 1997 (commencement of operations) through June 30,
1997.
Continued
37
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
5. RELATED PARTY TRANSACTIONS:
Provident has entered into an Investment Advisory Agreement with the Fund
whereby Provident supervises and manages the investment and reinvestment of
the assets of the U.S. Government Securities Money Market Fund, the U.S.
Government Income Fund, the Income Equity Fund, the Ohio Tax-Free Bond Fund,
the Balanced Fund, the Stock Appreciation Fund and the Large Company Select
Fund. Under the terms of the Investment Advisory Agreement, Provident is
entitled to receive fees based on a percentage of the average net assets of
each Portfolio.
Pursuant to the terms of the Investment Advisory Agreement with the Fund,
Provident has entered into a Sub- Investment Advisory Agreement with
DePrince, Race & Zollo, Inc. ("DRZ"), for the Income Equity Fund. DRZ
provides investment advice to and supervises the investment program of the
Income Equity Fund. Under the terms of the Sub-Investment Advisory Agreement,
DRZ receives from Provident fees calculated at 0.50% of average daily net
assets up to $55 million of the Income Equity Fund managed by DRZ and 0.55%
of average daily net assets above $55 million for this Portfolio managed by
DRZ.
In addition to serving as Investment Adviser, Provident serves as custodian
and fund accountant to the Portfolios. Under the terms of the Custodian, Fund
Accounting and Recordkeeping Agreement, Provident is entitled to receive fees
based on a percentage of the average daily net assets of each Portfolio.
During the period ended June 30, 1997, Provident Securities & Investment
Company ("PSI"), an affiliate of Provident which is a registered broker
dealer, executed transactions to purchase and sell portfolio investments on
behalf of the Fund. The Fund paid PSI approximately $35,720 that has been
included in investments at cost, as commissions for such transactions.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS")
is an Ohio limited partnership. BISYS Fund Services Ohio, Inc. ("BISYS
Ohio"), and BISYS are subsidiaries of the BISYS Group, Inc.
BISYS, with whom certain officers and a director of the Fund are affiliated,
serves the Fund as administrator, principal underwriter and distributor. Such
officers and director are paid no fees directly by the Portfolios for serving
as officers and as director of the Fund. Under the terms of the
Administration Agreement, BISYS' fees are computed at 0.20% of the average
daily net assets of each Portfolio.
Provident also serves as transfer agent and shareholder servicing agent to
the Fund. BISYS Ohio served as sub-transfer agent for the Investor B Shares
through March 24, 1997. On March 25, 1997, Provident became the Transfer
Agent for all shares of the Fund. Under the terms of the Master Transfer and
Recordkeeping Agreement, Provident is entitled to receive fees based on the
number of shareholders of each Portfolio and certain out-of-pocket expenses.
Under the terms of the Shareholder Services Plan, each Portfolio is
authorized to pay compensation to banks and other financial intitutions,
including Provident and BISYS or other providers for recordkeeping and/or
administrative support services. As of June 30, 1997, there were no
shareholder servicing agreements entered into on behalf of any of the
Portfolios.
The Fund has adopted an Investor A Distribution and Shareholder Service Plan
and Agreement ("Investor A Plan") and an Investor B Distribution and
Shareholder Services Plan and Agreement ("Investor B Plan"), each in
accordance with Rule 12b-1 under the 1940 Act. Pursuant to the Investor A
Plan, each Portfolio is authorized to pay
Continued
38
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
5. RELATED PARTY TRANSACTIONS, CONTINUED:
or reimburse BISYS, as distributor of Investor A Shares, a periodic amount,
calculated at an annual rate not to exceed 0.25% of the average daily net
asset value of Investor A Shares of each Portfolio. Pursuant to the Investor
B Plan, each variable net asset value fund is authorized to pay or reimburse
BISYS, as distributor of Investor B Shares, (a) a distribution fee in an
amount not to exceed, on an annual basis, 0.75% of the average daily net
asset value of Investor B Shares of that Portfolio and (b) a service fee in
an amount not to exceed 0.25% of the average daily net asset value of
Investor B Shares of that Portfolio. These fees may be used by BISYS to pay
banks, broker dealers and other institutions, including Provident, or to
reimburse BISYS or its affiliates, to finance any activity which is
principally intended to result in the sale of shares or to compensate for
providing shareholder services.
For the period ended June 30, 1997, BISYS received $10,829 from commissions
on sales of capital shares, of which $156 was reallowed to brokers affiliated
with Provident.
Provident and certain of its affiliates own shares of the Portfolios of the
Fund. As of June 30, 1997, the aggregate value of capital shares owned by
Provident and its affiliates were as follows (amounts in thousands):
<TABLE>
<S> <C>
U.S. Government Money Market........................................ $113,996
U.S. Government Income Fund......................................... $ 48,856
Income Equity Fund.................................................. $ 13,988
Ohio Tax-Free Bond Fund............................................. $ 7,006
Balanced Fund....................................................... $ 4,004
Stock Appreciation.................................................. $ 1,270
Large Company Select................................................ $ 30,594
</TABLE>
Fees may be voluntarily reduced or reimbursed to assist the Portfolios in
maintaining competitive expense ratios. Information regarding these
transactions is as follows for the period ended June 30, 1997:
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME
SECURITIES MONEY U.S. GOVERNMENT EQUITY
MARKET FUND INCOME FUND FUND
---------------- --------------- -------
<S> <C> <C> <C>
INVESTMENT ADVISOR FEES:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)............................. 0.15% 0.40% 0.95%
Voluntary fee reductions............ NA NA NA
ADMINISTRATION FEES:
Annual fee (percentage of average
net assets)......................... 0.20% 0.20% 0.20%
12B-1 FEES (INVESTOR A):
Annual fee before voluntary fee
reductions
(percentage of average net assets). 0.25% 0.25% 0.25%
Voluntary fee reductions............ $125,052 $14,287 $19,605
12B-1 FEES (INVESTOR B):
Annual fee (percentage of average
net assets)......................... NA 1.00% 1.00%
CUSTODIAN AND ACCOUNTING FEES....... $ 41,685 $24,513 $65,983
TRANSFER AGENT FEES................. $ 16,684 $24,407 $34,205
</TABLE>
Continued
39
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
5. RELATED PARTY TRANSACTIONS, CONTINUED:
<TABLE>
<CAPTION>
OHIO TAX-FREE BALANCED STOCK LARGE COMPANY
BOND FUND FUND APPRECIATION FUND SELECT FUND
------------- -------- ----------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ADVISOR FEES:
Annual fee before
voluntary fee reductions
(percentage of average
net assets)............. 0.50% 0.90% 0.80% 0.80%
Voluntary fee
reductions.............. $ 5,447 $10,012 NA NA
ADMINISTRATION FEES:
Annual fee (percentage
of average net assets).. 0.20% 0.20% 0.20% 0.20%
12B-1 FEES (INVESTOR A):
Annual fee before
voluntary fee reductions
(percentage of average
net assets)............. 0.25% 0.25% 0.25% 0.25%
Voluntary fee
reductions.............. NA $ 5,307 NA NA
12B-1 FEES (INVESTOR B):
Annual fee (percentage
of average net assets).. 1.00% 1.00% 1.00% 1.00%
CUSTODIAN AND ACCOUNTING
FEES.................... $ 7,626 $15,012 $20,650 $21,545
TRANSFER AGENT FEES..... $20,196 $22,891 $59,244 $19,384
</TABLE>
NA--Not applicable
6. ACQUISITION OF COMMON TRUST FUNDS A, B, C AND G
On January 2, 1997, the Large Company Select Fund issued Investor A shares to
acquire the assets and liabilities, including distributions payable of
$26,562, of the Common Trust A and Common Trust G of The Provident Bank. The
following is a summary of Investor A shares issued, net assets acquired, net
asset value per share and unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Investor A Shares (000).............................................. 2,781
Net assets (000)..................................................... $27,813
Net asset value...................................................... $ 10.00
Unrealized appreciation (000)........................................ $12,593
</TABLE>
On January 9, 1997, the Ohio Tax Free Fund issued Investor A shares to
acquire the assets and liabilities, including distributions payable of
$15,577, of the Common Trust Fund B of The Provident Bank. The following is a
summary of Investor A shares issued, net assets acquired, net asset value per
share and unrealized appreciation as of the date acquired.
<TABLE>
<S> <C>
Investor A Shares (000).............................................. 1,097
Net assets (000)..................................................... $11,400
Net asset value...................................................... $ 10.39
Unrealized appreciation (000)........................................ $ 465
</TABLE>
Continued
40
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc. June 30, 1997
(Unaudited)
On January 23, 1997, the U.S. Government Income Fund issued Investor A shares
to acquire the assets and liabilities, including distributions payable of
$26,148, of the Common Trust Fund C of The Provident Bank. The following is a
summary of Investor A shares issued, net assets acquired, net asset value per
share and unrealized appreciation as of the date acquired.
<TABLE>
<S> <C>
Investor A Shares (000).............................................. 1,761
Net assets (000)..................................................... $16,607
Net asset value...................................................... $ 9.43
Unrealized appreciation (000)........................................ $ 392
</TABLE>
7. SUBSEQUENT EVENTS
The Company has entered into an Agreement and Plan of Reorganization and
Liquidation, dated as of March 21, 1997 (the "Plan"), with The Riverfront
Funds, an Ohio business trust (the "Trust"), whereby each Fund of the Company
will become a separate series of an Ohio business trust rather than a
separate series of a Maryland corporation (the "Conversion").
The Conversion is subject to certain regulatory approvals and to approval by
the shareholders of the Funds at a special Shareholder Meeting. If the
shareholders approve the Conversion and the necessary regulatory approval is
obtained, it is expected that the Conversion will take place prior to the end
of the Funds' fiscal year.
41
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
-------------------------------------------------------------------
SIX MONTHS OCTOBER 1,
ENDED YEARS ENDED DECEMBER 31, 1992 TO
JUNE 30, -------------------------------------- DECEMBER 31,
1997 1996 1995 1994 (A) 1993 (A) 1992 (A)(D)
----------- -------- -------- -------- -------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------
Investment Activities
Net investment income.. 0.024 0.046 0.050 0.040 0.030 0.010
-------- -------- -------- -------- -------- -------
Distributions
Net investment income.. (0.024) (0.046) (0.050) (0.040) (0.030) (0.010)
-------- -------- -------- -------- -------- -------
NET ASSET VALUE,
END OF PERIOD.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== =======
Total Return............ 2.42%(b) 4.89% 5.52% 3.78% 2.90% 0.80%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $166,862 $181,017 $157,495 $149,374 $133,207 $37,083
Ratio of expenses to
average net assets...... 0.64%(c) 0.59% 0.58% 0.51% 0.32% 0.01%(c)
Ratio of net investment
income to average net
assets.................. 4.83%(c) 4.78% 5.34% 3.70% 2.85% 3.09%(c)
Ratio of expenses to
average net assets*..... 0.79%(c) 0.84% 0.83% 0.80% 0.42% 0.68%(c)
Ratio of net investment
income to average net
assets*................. 4.68%(c) 4.53% 5.09% 3.41% 2.75% 2.42%(c)
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or expense reimbursements had not
occurred, the ratios would have been as indicated.
(a) Audited by other auditors.
(b) Not annualized.
(c) Annualized.
(d) Period from commencement of operations.
See Notes to Financial Statements.
42
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND
-------------------------------------------------------------------------------------------------------------
JANUARY 17,
YEAR ENDED YEAR ENDED 1995 TO YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, --------------------------------
JUNE 30, 1997 1996 1995 1995 (A) 1994 (F) 1993 (F) 1992 (F)(G)
------------------------- --------------------- ------------ ------------ -------- -------- -----------
INVESTOR A INVESTOR B INVESTOR A INVESTOR B INVESTOR A INVESTOR B
----------- ----------- ---------- ---------- ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.43 $10.64 $ 9.71 $10.95 $ 8.92 $10.00 $ 9.91 $ 9.76 $ 10.00
------- ------ ------- ------ ------- ------ ------- ------- -------
Investment
Activities
Net investment
income......... 0.24 0.25 0.52 0.49 0.54 0.43 0.54 0.51 0.10
Net realized and
unrealized
gains (losses)
from
investments.... 0.00 (0.03) (0.29) (0.31) 0.79 0.94 (0.99) 0.20 (0.23)
------- ------ ------- ------ ------- ------ ------- ------- -------
Total from
Investment
Activities..... 0.24 0.22 0.23 0.18 1.33 1.37 (0.45) 0.71 (0.13)
------- ------ ------- ------ ------- ------ ------- ------- -------
Distributions
Net investment
income......... (0.30) (0.34) (0.51) (0.49) (0.54) (0.42) (0.54) (0.50) (0.10)
In excess of net
investment
income......... (0.06) (0.01)
------- ------ ------- ------ ------- ------ ------- ------- -------
Total
Distributions.. (0.30) (0.34) (0.51) (0.49) (0.54) (0.42) (0.54) (0.56) (0.11)
------- ------ ------- ------ ------- ------ ------- ------- -------
NET ASSET VALUE,
END OF PERIOD... $ 9.37 $10.52 $ 9.43 $10.64 $ 9.71 $10.95 $ 8.92 $ 9.91 $ 9.76
======= ====== ======= ====== ======= ====== ======= ======= =======
Total Return
(excludes
sales/redemption
charge)......... 2.55%(b) 2.08%(b) 2.51% 1.72% 15.22% 13.96%(e) (4.64)% 7.38% (1.31)%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $49,666 $1,437 $33,694 $1,296 $36,538 $1,263 $32,721 $30,078 $24,588
Ratio of expenses
to average net
assets.......... 1.12%(c) 1.93%(c) 1.11% 1.96% 1.09% 1.90%(c) 0.86% 0.65% 0.66%
Ratio of net
investment
income to
average net
assets.......... 5.59%(c) 4.76%(c) 5.45% 4.59% 5.74% 4.80%(c) 5.78% 5.05% 4.00%
Ratio of expenses
to average net
assets*......... 1.18%(c) 1.93%(c) 1.20% 1.96% 1.18% 1.90%(c) 1.14% 1.08% 1.06%
Ratio of net
investment
income to
average net
assets*......... 5.53%(c) 4.76%(c) 5.36% 4.59% 5.65% 4.80%(c) 5.49% 4.62% 3.60%
Portfolio
Turnover(d)..... 37% 37% 53% 53% 75% 75% 83% 220% 117%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or expense reimbursements had not
occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(e) Represents total return for the Investor A Shares from January 1, 1995 to
January 16, 1995 plus the total return for the Investor B Shares from
January 17, 1995 to December 31, 1995.
(f) Audited by other auditors.
(g) Investment operations and sales of shares to the public began on October 1,
1992.
See Notes to Financial Statements.
43
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
INCOME EQUITY FUND
-----------------------------------------------------------------------------------------------------------
JANUARY 17,
YEAR ENDED YEAR ENDED 1995 TO YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED DECEMBER 31, DECEMBER 31 DECEMBER 31, -------------------------------
JUNE 30, 1997 1996 1995 1995 (A) 1994 (F) 1993 (F) 1992 (F)(G)
------------------------- --------------------- ----------- ------------ -------- -------- -----------
INVESTOR A INVESTOR B INVESTOR A INVESTOR B INVESTOR A INVESTOR B
----------- ----------- ---------- ---------- ----------- ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD........... $ 11.92 $ 12.16 $ 11.70 $ 11.85 $ 10.15 $10.00 $ 10.63 $ 10.78 $ 10.00
------- ------- ------- ------- ------- ------ ------- ------- -------
Investment
Activities
Net investment
income.......... 0.09 0.04 0.21 0.12 0.27 0.13 0.32 0.28 0.08
Net realized and
unrealized gains
from
investments..... 1.81 1.84 2.12 2.21 2.89 2.78 0.00 1.01 0.80
------- ------- ------- ------- ------- ------ ------- ------- -------
Total from
Investment
Activities...... 1.90 1.88 2.33 2.33 3.16 2.91 0.32 1.29 0.88
------- ------- ------- ------- ------- ------ ------- ------- -------
Distributions
Net investment
income.......... (0.09) (0.04) (0.21) (0.12) (0.27) (0.13) (0.31) (0.27) (0.08)
In excess of net
investment
income.......... (0.03) (0.01)
Net realized
gains........... (1.90) (1.90) (1.34) (0.93) (0.49) (1.14)
------- ------- ------- ------- ------- ------ ------- ------- -------
Total
Distributions... (0.09) (0.04) (2.11) (2.02) (1.61) (1.06) (0.80) (1.44) (0.10)
------- ------- ------- ------- ------- ------ ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.... $ 13.73 $ 14.00 $ 11.92 $ 12.16 $ 11.70 $11.85 $ 10.15 $ 10.63 $ 10.78
======= ======= ======= ======= ======= ====== ======= ======= =======
Total Return
(excludes
sales/redemption
charge).......... 16.00%(b) 15.48%(b) 19.88% 19.67% 31.45% 29.28%(e) 3.08% 12.11% 8.74%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000).. $83,796 $13,964 $73,368 $ 7,632 $60,845 $2,833 $34,965 $24,387 $12,262
Ratio of expenses
to average net
assets........... 1.72%(c) 2.51%(c) 1.76% 2.48% 1.49% 2.46%(c) 1.30% 1.47% 1.48%
Ratio of net
investment income
to average net
assets........... 1.45%(c) 0.68%(c) 1.62% 0.88% 2.27% 1.12%(c) 2.93% 2.55% 3.16%
Ratio of expenses
to average net
assets*.......... 1.77%(c) 2.51%(c) 1.85% 2.54% 1.74% 2.51%(c) 1.58% 1.64% 2.02%
Ratio of net
investment income
to average net
assets*.......... 1.40%(c) 0.68%(c) 1.53% 0.82% 2.02% 1.07%(c) 2.65% 2.38% 2.62%
Portfolio Turnover
(d).............. 75% 75% 166% 166% 180% 180% 119% 145% 12%
Average commission
rate paid (h).... $0.0537 $0.0537 $0.0541 $0.0541
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or expense reimbursements had not
occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(e) Represents total return for the Investor A Shares from January 1, 1995 to
January 16, 1995 plus the total return for the Investor B Shares from
January 17, 1995 to December 31, 1995.
(f) Audited by other auditors.
(g) Investment operations and sales of shares to the public began on October 1,
1992.
(h) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and is calculated on the basis of the
portfolio as a whole without distinguishing between the classes of shares
issued. Disclosure is not required for periods ending prior to September 1,
1996.
See Notes to Financial Statements.
44
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
OHIO TAX-FREE BOND FUND
-------------------------------------------------------------------------------------------
JANUARY 17, FROM AUGUST 1,
YEAR ENDED YEAR ENDED 1995 TO 1994 THROUGH
SIX MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
JUNE 30, 1997 1996 1995 1995 (A) 1994 (A)(E)
------------------------- --------------------- ------------ ------------ --------------
INVESTOR A INVESTOR B INVESTOR A INVESTOR B INVESTOR A INVESTOR B
----------- ----------- ---------- ---------- ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.41 $10.64 $ 10.51 $10.73 $ 9.83 $10.00 $ 10.00
------ ------ ------- ------ ------- ------ -------
Investment Activities
Net investment income.. 0.16 0.18 0.40 0.32 0.39 0.27 0.12
Net realized and
unrealized gains
(losses) from
investments........... 0.02 (0.06) (0.10) (0.09) 0.67 0.73 (0.17)
------ ------ ------- ------ ------- ------ -------
Total from Investment
Activities............ 0.18 0.12 0.30 0.23 1.06 1.00 (0.05)
------ ------ ------- ------ ------- ------ -------
Distributions
Net investment income.. (0.29) (0.25) (0.40) (0.32) (0.38) (0.27) (0.12)
------ ------ ------- ------ ------- ------ -------
NET ASSET VALUE,
END OF PERIOD.......... $10.30 $10.51 $ 10.41 $10.64 $ 10.51 $10.73 $ 9.83
====== ====== ======= ====== ======= ====== =======
Total Return (excludes
sales/redemption
charge)................ 1.77%(b) 1.13%(b) 2.95% 2.21% 10.96% 10.10%(f) (0.47)%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $7,189 $1,305 $10,693 $ 984 $11,091 $ 626 $10,190
Ratio of expenses to
average net assets..... 1.52%(c) 2.30%(c) 1.45% 2.25% 1.49% 2.27%(c) 1.08%(c)
Ratio of net investment
income to average net
assets................. 3.97%(c) 3.11%(c) 3.87% 3.07% 3.77% 3.01%(c) 2.92%(c)
Ratio of expenses to
average net assets*.... 1.62%(c) 2.40%(c) 1.55% 2.36% 1.64% 2.41%(c) 1.44%(c)
Ratio of net investment
income to average net
assets*................ 3.87%(c) 3.01%(c) 3.77% 2.96% 3.62% 2.87%(c) 2.56%(c)
Portfolio Turnover (d).. 0% 0% 6% 6% 34% 34% 29%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or expense reimbursements had not
occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(e) Audited by other auditors.
(f) Represents total return for Investor A Shares from January 1, 1995 to
January 16, 1995 plus the total return for Investor B shares from January
17, 1995 to December 31, 1995.
See Notes to Financial Statements.
45
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
BALANCED FUND
----------------------------------------------------------------------------------------------
JANUARY 17, FROM SEPTEMBER 1,
YEAR ENDED YEAR ENDED 1995 TO 1994 THROUGH
SIX MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
JUNE 30, 1997 1996 1995 1995 (A) 1994 (A)(F)
------------------------- --------------------- ------------ ------------ -----------------
INVESTOR A INVESTOR B INVESTOR A INVESTOR B INVESTOR A INVESTOR B
----------- ----------- ---------- ---------- ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 11.69 $ 12.04 $ 11.36 $ 11.70 $ 9.79 $10.00 $10.00
------- ------- ------- ------- ------ ------ ------
Investment Activities
Net investment income.. 0.12 0.07 0.31 0.26 0.35 0.25 0.10
Net realized and
unrealized gains
(losses) from
investments............ 0.89 0.92 0.33 0.34 1.66 1.79 (0.18)
------- ------- ------- ------- ------ ------ ------
Total from Investment
Activities............. 1.01 0.99 0.64 0.60 2.01 2.04 (0.08)
------- ------- ------- ------- ------ ------ ------
Distributions
Net investment income.. (0.12) (0.07) (0.31) (0.26) (0.34) (0.24) (0.13)
Net realized gains..... (0.10) (0.10)
------- ------- ------- ------- ------ ------ ------
Total Distributions.... (0.12) (0.07) (0.31) (0.26) (0.44) (0.34) (0.13)
------- ------- ------- ------- ------ ------ ------
NET ASSET VALUE,
END OF PERIOD.......... $ 12.58 $ 12.96 $ 11.69 $ 12.04 $11.36 $11.70 $ 9.79
======= ======= ======= ======= ====== ====== ======
Total Return (excludes
sales/redemption
charge)................ 8.72%(c) 8.26%(c) 5.76% 5.27% 20.83% 20.53%(b) (0.82)%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $ 9,921 $10,740 $10,786 $10,008 $9,427 $5,030 $2,709
Ratio of expenses to
average net assets...... 1.88%(d) 2.73%(d) 1.70% 2.54% 1.28% 2.04%(d) 1.48%(d)
Ratio of net investment
income to average net
assets.................. 2.01%(d) 1.16%(d) 2.87% 2.03% 3.48% 2.69%(d) 4.01%(d)
Ratio of expenses to
average net assets*.... 2.09%(d) 2.83%(d) 1.94% 2.68% 1.67% 2.84%(d) 4.61%(d)
Ratio of net investment
income to average net
assets*................. 1.81%(d) 1.06%(d) 2.63% 1.89% 3.09% 1.89%(d) 0.88%(d)
Portfolio Turnover (e).. 72% 72% 98% 98% 13% 13% 1%
Average commission rate
paid (g)................ $0.0600 $0.0600 $0.0891 $0.0891
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or expense reimbursements had not
occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Represents total return for the Investor A Shares from January 1, 1995 to
January 16, 1995 plus the total return for the Investor B Shares from
January 17, 1995 to December 31, 1995.
(c) Not Annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(f) Audited by other auditors.
(g) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and is calculated on the basis of the
portfolio as a whole without distinguishing between the classes of shares
issued. Disclosure is not required for periods ending prior to September 1,
1996.
See Notes to Financial Statements.
46
<PAGE>
- --------------------------------------------------------------------------------
[This Page Intentionally Left Blank]
47
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
STOCK APPRECIATION FUND
----------------------------------------------------------------------------------------
FROM OCTOBER 1, FROM OCTOBER 1,
YEAR ENDED 1995 THROUGH 1995 THROUGH
SIX MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31,
JUNE 30, 1997 1996 1995 (B) 1995 (A)(B)
-------------------------- ----------------------- --------------- ---------------
INVESTOR A INVESTOR B INVESTOR A INVESTOR B INVESTOR A INVESTOR B
----------- ----------- ---------- ---------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 9.43 $ 9.77 $ 9.50 $ 9.91 $ 10.00 $10.00
------- ------- ------- ------- ------- ------
Investment Activities
Net investment income.. (0.03) (0.05) (0.14) (0.15) (0.01) (0.01)
Net realized and
unrealized gains
(losses) from
investments........... 0.56 0.58 1.10 1.04 (0.12) (0.08)
------- ------- ------- ------- ------- ------
Total from Investment
Activities............. 0.53 0.53 0.96 0.89 (0.13) (0.09)
------- ------- ------- ------- ------- ------
Distributions
Net realized gains..... (1.03) (1.03) (0.37)
------- ------- ------- ------- ------- ------
NET ASSET VALUE,
END OF PERIOD.......... $ 9.96 $ 10.30 $ 9.43 $ 9.77 $ 9.50 $ 9.91
======= ======= ======= ======= ======= ======
Total Return
(excludes
sales/redemption
charge)................ 5.62%(c) 5.42%(c) 10.17% 9.05% (1.20)%(c) (0.90)%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $24,048 $ 935 $31,227 $ 687 $40,995 $ 72
Ratio of expenses to
average net assets...... 2.11%(d) 2.87%(d) 1.91% 2.64% 1.76%(d) 2.30%(d)
Ratio of net investment
loss
to average net assets.. (0.45)%(d) (1.23)%(d) (1.25)% (2.01)% (0.49)%(d) (1.69)%(d)
Ratio of expenses to
average net assets*..... (g) (g) (g) (g) 1.77%(d) 2.39%(d)
Ratio of net investment
loss
to average net assets*. (g) (g) (g) (g) (0.50)%(d) (1.78)%(d)
Portfolio Turnover (e).. 48% 48% 162% 162% 46% 46%
Average commission rate
paid (h)................ $0.0600 $0.0600 $0.0597 $0.0597
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or expense reimbursements had not
occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) As of September 30, 1995, the Stock Appreciation Fund acquired all of the
assets of the MIM Stock Appreciation Fund and the MIM Stock Growth Fund.
Financial highlights for periods prior to September 30, 1995 represent the
performance of the MIM Stock Appreciation Fund. The per share data for the
periods prior to September 30, 1995 have been restated to reflect the
impact of the change of net asset value of the Stock Appreciation Fund on
September 30, 1995 from $17.34 to $10.00.
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(f) Audited by other auditors.
(g) There were no waivers or reimbursements during the period.
(h) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and is calculated on the basis of the
portfolio as a whole without distinguishing between the classes of shares
issued. Disclosure is not required for periods ending prior to September 1,
1996.
See Notes to Financial Statements.
48
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
STOCK APPRECIATION FUND
--------------------------------------------
YEARS ENDED SEPTEMBER 30,
--------------------------------------------
1995 (F) 1994 (F) 1993 (F) 1992 (F)
-------- -------- -------- --------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD........................................ $ 8.25 $ 10.18 $ 7.98 $ 7.70
------- ------- ------- -------
Investment Activities
Net investment loss........................................ (0.07) (0.12) (0.17) (0.08)
Net realized and unrealized gains
(losses) from investments................................. 2.14 (1.26) 2.57 1.41
------- ------- ------- -------
Total from Investment Activities........................... 2.07 (1.38) 2.40 1.33
------- ------- ------- -------
Distributions
Net realized gains......................................... (0.32) (0.55) (0.20) (1.05)
------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.............................................. $ 10.00 $ 8.25 $ 10.18 $ 7.98
======= ======= ======= =======
Total Return
(excludes sales/redemption charge)......................... 25.12% (13.91)% 30.61% 16.69%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........................... $44,500 $47,880 $59,330 $28,750
Ratio of expenses to average net assets..................... 2.61% 2.44% 2.47% 2.70%
Ratio of net investment loss to average net assets.......... (0.73)% (1.35)% (1.85)% (1.00)%
Ratio of expenses to average net assets*.................... (g) (g) (g) (g)
Ratio of net investment loss
to average net assets*..................................... (g) (g) (g) (g)
Portfolio Turnover (e)...................................... 197% 254% 216% 288%
Average commission rate paid (h)............................
</TABLE>
See Notes to Financial Statements.
49
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds, Inc.
<TABLE>
<CAPTION>
LARGE COMPANY
SELECT FUND
--------------------------
FROM JANUARY 2, 1997
THROUGH JUNE 30,
1997(A)
--------------------------
INVESTOR A INVESTOR B
----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD......................................... $ 10.00 $ 10.00
------- -------
Investment Activities
Net investment income (loss)................................ 0.00 (0.01)
Net realized and unrealized gains (losses) from
investments................................................ 1.89 1.86
------- -------
Total from Investment Activities............................ 1.89 1.85
------- -------
Distributions
Net investment income....................................... (0.03) 0.00
------- -------
NET ASSET VALUE,
END OF PERIOD............................................... $ 11.86 $ 11.85
======= =======
Total Return (excludes sales/redemption charge).............. 18.91%(b) 18.50%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............................ $30,662 $ 527
Ratio of expenses to average net assets...................... 1.68%(c) 2.48%(c)
Ratio of net investment income (loss) to average
net assets.................................................. (0.01)%(c) (0.67)%(c)
Ratio of expenses to average net assets...................... (f) (f)
Ratio of net investment income to average net assets......... (f) (f)
Portfolio Turnover (d)....................................... 15% 15%
Average commission rate paid (e)............................. $0.0907 $0.0907
</TABLE>
- -------
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and is calculated on the basis of the
portfolio as a whole without distinguishing between the classes of shares
issued.
(f) There were no waivers or reimbursements during the period.
See Notes to Financial Statements.
50
<PAGE>
The Riverfront Funds, Inc.
INVESTMENT ADVISER
The Provident Bank
One East Fourth Street
Cincinnati, Ohio 45202
DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219
FOR ADDITIONAL INFORMATION CALL
The Provident Bank
Mutual Fund Services
1-800-424-2295
