Semi-
Annual
Report
June 30, 1999
The Riverfront Large Company Select Fund
The Riverfront Balanced Fund
The Riverfront Small Company Select Fund
The Riverfront Income Equity Fund
The Riverfront U.S. Government Income Fund
The Riverfront U.S. Government Securities Money Market Fund
NOT FDIC NO BANK MAY LOSE
INSURED GUARANTEE VALUE
RIVERFRONT
FUNDS
- --------------------------------------------------------------------------------
Table of Contents The Riverfront Funds
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Message From The President.................................................. 2
Message From The Investment Adviser......................................... 3
Statements of Assets and Liabilities........................................ 4
Statements of Operations.................................................... 6
Statements of Changes in Net Assets......................................... 8
Schedules of Portfolio Investments.......................................... 10
Notes to Financial Statements............................................... 22
Financial Highlights........................................................ 29
</TABLE>
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Message From The President The Riverfront Funds
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Combined Semi-Annual Report to Shareholders for The
Riverfront Funds. This Report covers the first half of the fund's current fiscal
year, which is the six-month reporting period from January 1, 1999 through June
30, 1999. Inside you will find commentary by the Funds' investment adviser and
the unaudited financial statements, including the portfolio of investments.
A fund-by fund performance summary is as follows:
Large Company Select Fund
At the end of the reporting period, the fund's portfolio of large-company stocks
included such household names as AT&T, America Online, American Express, Bank of
America, Bristol-Myers Squibb, Coca-Cola, Ford, the Gap, Gillette, Microsoft,
Procter & Gamble, and Wal-Mart. Investor A Shares produced a total return of
11.52%,**, or 6.53% adjusted for the fund's sales charge, through a $1.60
increase in net asset value. Investor B Shares produced a total return of
11.03%,** or 7.03% adjusted for the fund's redemption fee, through a $1.51
increase in net asset value. Total fund assets totaled $84.2 million at the end
of the reporting period.
Balanced Fund
This fund invests in a classic combination of two key financial markets: stocks
and fixed income securities. At the end of the reporting period, 55% of the
fund's portfolio was invested in stocks, with the remainder invested in bonds
and money market securities. Investor A Shares produced a total return of
5.45%,** or 0.74% adjusted for the fund's sales charge. Contributing to the
total return were a $0.63 increase in net asset value and $0.08 per share in
dividends. Investor B Shares produced a total return of 4.98%,** or 0.97%
adjusted for the fund's redemption fee. Contributing to the total return were a
$0.65 increase in net asset value and $0.02 per share in dividends. The fund's
total assets reached $30.5 million at the end of the reporting period.
Small Company Select Fund
The fund's relatively aggressive portfolio of stocks issued by smaller companies
recorded modestly positive returns. The fund's Investor A Shares produced a
total return of 3.30%,** or (1.33%) adjusted for the fund's sales charge,
through a $0.26 increase in net asset value. Investor B Shares produced a total
return of 2.83%,** or (1.17%) adjusted for the fund's redemption fee, through a
$0.23 increase in net asset value. Total fund assets totaled $19.8 million at
the end of the period.
Income Equity Fund
This fund pursues income and capital appreciation through high-quality
dividend-paying stocks that, at the end of the reporting period, included
companies like AT&T, Charles Schwab, Dell Computer, Disney, Ford, General
Electric, Intel, J.P. Morgan, McDonald's, Merrill Lynch, Pfizer, and Time
Warner. During the six months ended June 30, 1999, Investor A Shares produced a
total return of 7.06%,** or 2.27% adjusted for the fund's sales charge.
Contributing to the total return were a $0.71 increase in net asset value and
$0.03 per share in dividends. Investor B Shares produced a total return of
6.65%,** or 2.65% adjusted for the fund's redemption fee. Contributing to the
total return were a $0.71 increase in net asset value and $0.01 per share in
dividends. Total fund assets reached $46 million at the end of the period.
U.S. Government Income Fund
The fund pursues income through a portfolio that, at the end of the period,
invested primarily in U.S. Treasury securities (11.2%), government agency
securities (61.6%) and corporate bonds (23.4%). Investor A Shares provided
shareholders with dividends totaling $0.23 per share. As interest rates rose
during the reporting period, the net asset value of the fund declined from $9.65
to $9.28. Through income and the decline in net asset value, the fund produced a
total return of 1.43%,** or (5.82%) adjusted for the fund's sales charge.
Investor B Shares provided shareholders with dividends totaling $0.19 per share.
As interest rates rose during the period, the net asset value of the fund
declined from $10.93 to $10.54. Through income and the decline in net asset
value, the fund produced a total return of 1.84%,** or (5.69%) adjusted for the
fund's redemption fee. Total fund assets reached $39.3 million at the end of the
period.
U.S. Government Securities Money Market Fund
Designed to provide you with a convenient way to pursue daily income on your
ready cash, the fund's portfolio of U.S. government money market securities paid
dividends totaling $0.02 per share, while maintaining a stable share value of
$1.00.* More than $164 million was at work in the fund at the end of the period.
Thank you for pursuing your goals through the Riverfront Funds. We look forward
to keeping you up-to-date on the details of your investment on a regular basis,
and providing you with the highest level of service possible.
Sincerely,
/s/ Edward C. Gonzales
Edward C. Gonzales
President
August 15, 1999
* An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Although money market funds seek to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in them.
** Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
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Message From The Investment Advisor The Riverfront Funds
- --------------------------------------------------------------------------------
[Logo of Provident Investment Advisors]
The U.S. economy continues to hum along. The Gross Domestic Product (the "GDP")
rose at an annual rate of 2.30% in the quarter ended June 30. This was below the
prior two periods in which the statistic was 6.00% and 4.30% respectively. Along
with the strength in the domestic economy and a rebound in many global
economies, U.S. interest rates have risen. The yield on the 30-year Treasury
bond has risen from 5.04% at the beginning of the calendar year to 6.19% in late
June. The U.S. consumer accounts for about two-thirds of GDP, and strength in
consumer spending continues to drive the growth of GDP. In the first quarter,
consumer spending rose at an annual rate of 6.70%. With the advent of electronic
filing of income taxes, people are getting tax refunds earlier and spending them
earlier. This had a stimulative effect on consumer spending again this year.
The financial markets have been positive but volatile over the past twelve
months. The summer months last year experienced significant nervousness over the
global deflationary trends and the perceived "credit crunch" which would result.
By September, most stock markets around the world had corrected, including the
U.S., which declined by 15% from the June 30 level. This proved to be a
significant buying opportunity as the Federal Reserve in the U.S. and other
major economic powers orchestrated a massive increase in liquidity and cut short
term interest rates while lending significant amounts of emergency funds to
Russia and Brazil, two of the most affected economies. The Standard & Poor's 500
Composite Stock Price Index (the "S&P 500")* rebounded sharply from the lows of
October 8 and rose 43% from those lows through June 30 1999. During the past
year, large companies performed very well while small companies continue to
struggle in price performance. Growth stocks performed substantially better than
value or income oriented stocks for the period.
Over the most recent four months, the markets nervous focus has shifted from
global deflation to the potential of growing inflationary pressure in the U.S.
economy, particularly the cost of labor. This is an important shift in investor
psychology! Inflation is the most important ingredient in the pricing of all
financial assets. While we continue to see many deflationary trends,
particularly lower prices from the Internet revolution, perception is critically
important when the topic of inflation is at hand. We will monitor this shift and
are prepared to adjust the various portfolios if this perception turns to
reality. In the interim, we expect to see continued volatility within the
financial markets as this inflationary concern unfolds. Now we believe that the
current inflation scare can pass without significant concern, but we are
convinced that the "Best Inflation News" is behind us. Therefore, the likelihood
of continued above average returns i.e., 28% annualized over the past five years
from the S&P 500 is unlikely for the near future.
Another important ingredient to the stock market is corporate earnings. Earnings
have exceeded expectations in 1999 and we predict this will continue. The U.S.
economy has just entered the 101st consecutive month of the current expansion.
This is the longest peacetime expansion on record and in our opinion, there is
no end in sight. As long as the consumer is content with their employment
potential and real incomes continue to rise, they will continue to drive the
economy through spending while saving and investing in financial assets
providing ongoing demand for stocks. This is good!
On behalf of my associates, I wish you well and thank you for your continued
support and confidence.
Sincerely
/s/ C. Edwin Riley, Jr.
C. Edwin Riley
Senior Vice President and
Managing Director
Provident Investment Advisors
*The S&P 500 Index is an unmanaged index of common stocks in industry,
transportation, and financial and public utility companies. Investments cannot
be made in an index.
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Large Company Balanced Small Company
Select Fund Fund Select Fund
------------- ----------- -------------
<S> <C> <C> <C>
Assets:
Investments, at value (cost $55,928,177,
$26,328,405, and $16,024,460,
respectively)............................ $84,046,924 $30,376,100 $19,841,027
Interest and dividends receivable........ 44,148 198,538 7,137
Receivable for capital shares issued..... 188,427 9,844 148
Unamortized organization costs........... 2,438 -- --
Prepaid expenses and other assets........ 8,027 3,779 39,062
----------- ----------- -----------
Total Assets............................. 84,289,964 30,588,261 19,887,374
----------- ----------- -----------
Liabilities:
Dividends payable........................ -- 25,397 --
Payable for capital shares redeemed...... 22,370 2,319 265
Payable for investments purchased........ -- -- 176,400
Accrued expenses......................... 121,399 55,835 72,590
----------- ----------- -----------
Total Liabilities........................ 143,769 83,551 249,255
----------- ----------- -----------
Net Assets:
Capital.................................. 52,047,317 24,833,082 15,284,464
Accumulated undistributed net investment
income (loss)............................ (308,878) 3,952 (151,917)
Net unrealized appreciation/depreciation
on investments........................... 28,118,747 4,047,695 3,816,567
Accumulated undistributed (distributions
in excess) net realized gains (losses)
on investment transactions.............. 4,289,009 1,619,981 689,005
----------- ----------- -----------
Net Assets.............................. $84,146,195 $30,504,710 $19,638,119
=========== =========== ===========
Net assets:
Investor A Shares....................... $65,066,260 $13,773,174 $18,227,356
Investor B Shares....................... 19,079,935 16,731,536 1,410,763
----------- ----------- -----------
Total................................. $84,146,195 $30,504,710 $19,638,119
=========== =========== ===========
Shares of capital stock:
Investor A Shares....................... 4,201,865 1,007,592 2,236,882
Investor B Shares....................... 1,255,349 1,177,768 168,482
----------- ----------- -----------
Total................................. 5,457,214 2,185,360 2,405,364
=========== =========== ===========
Net asset value:
Investor A Shares--redemption price per
share................................... $ 15.49 $ 13.67 $ 8.15
Investor B Shares--offering price per
share*.................................. 15.20 14.21 8.37
=========== =========== ===========
Maximum sales charge (Investor A)........ 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)...................... $ 16.22 $ 14.31 $ 8.53
=========== =========== ===========
</TABLE>
- -------
* Redemption price of Investor B shares varies based on length of time shares
are held.
See accompanying notes.
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Income U.S. Government U.S. Government
Equity Income Securities Money
Fund Fund Market Fund
----------- --------------- ----------------
<S> <C> <C> <C>
Assets:
Investments, at value (Cost
$41,401,684, $39,890,554, and
$138,568,960, respectively)........ $45,895,608 $38,942,046 $138,568,960
Repurchase agreements (Cost $0, $0,
and $25,779,000, respectively)..... -- -- 25,779,000
----------- ----------- ------------
Total investments.................. 45,895,608 38,942,046 164,347,960
Cash............................... 1 -- 641
Interest and dividends receivable.. 84,440 395,693 547,137
Receivable for capital shares
issued............................. 8,337 827 --
Prepaid expenses and other assets.. 17,248 5,044 16,872
----------- ----------- ------------
Total Assets....................... 46,005,634 39,343,610 164,912,610
----------- ----------- ------------
Liabilities:
Dividends payable.................. -- 173,733 581,470
Payable for capital shares
redeemed........................... 19,553 -- --
Accrued expenses................... 113,428 55,987 138,794
----------- ----------- ------------
Total Liabilities.................. 132,981 229,720 720,264
----------- ----------- ------------
Net Assets:
Capital............................ 48,305,045 40,314,831 164,198,765
Accumulated undistributed net
investment income (loss)........... (339) 25,353 --
Net unrealized
appreciation/depreciation on
investments........................ 4,493,924 (948,508) --
Accumulated undistributed
(distributions in excess) net
realized gains (losses)
on investment transactions........ (6,925,977) (277,786) (6,419)
----------- ----------- ------------
Net Assets........................ $45,872,653 $39,113,890 $164,192,346
=========== =========== ============
Net assets:
Investor A Shares................. $32,040,907 $37,614,655 $164,192,346
Investor B Shares................. 13,831,746 1,499,235 --
----------- ----------- ------------
Total........................... $45,872,653 $39,113,890 $164,192,346
=========== =========== ============
Shares of capital stock:
Investor A Shares................. 2,866,690 4,052,696 164,198,764
Investor B Shares................. 1,205,894 142,184 --
----------- ----------- ------------
Total........................... 4,072,584 4,194,880 164,198,764
=========== =========== ============
Net asset value:
Investor A Shares--redemption
price per share................... $ 11.18 $ 9.28 $ 1.00
Investor B Shares--offering price
per share*........................ 11.47 10.54 N/A
=========== =========== ============
Maximum sales charge (Investor A).. 4.50% 4.50% N/A
=========== =========== ============
Maximum offering price per share
(100%/(100%--maximum sales charge)
of net asset value adjusted to
nearest cent) (Investor A) (a).... $ 11.71 $ 9.72 $ 1.00
=========== =========== ============
</TABLE>
- -------
(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.
N/A Not applicable
See accompanying notes.
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Riverfront Funds Six Months Ended June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Large Company Balanced Small Company
Select Fund Fund Select Fund
------------- ---------- -------------
<S> <C> <C> <C>
Investment income:
Interest income........................ $ 2,436 $ 273,322 $ 12,701
Dividend income........................ 287,452 107,600 25,328
---------- ---------- ---------
Total income........................... 289,888 380,922 38,029
---------- ---------- ---------
Expenses:
Investment advisory fees............... 287,566 123,932 76,587
Administration fees.................... 72,699 24,035 16,800
12b-1 fees (Investor A)................ 62,478 15,453 22,225
12b-1 fees (Investor B)................ 69,544 75,810 6,835
Custodian and accounting fees.......... 55,005 22,443 15,265
Audit and legal fees................... 13,638 5,634 3,903
Organization costs..................... 905 -- --
Trustees' fees and expenses............ 3,077 1,267 1,086
Transfer agent fees.................... 22,263 21,901 38,010
Registration and filing fees........... 3,079 1,991 5,796
Printing costs......................... 6,876 3,624 2,896
Other.................................. 1,636 546 543
---------- ---------- ---------
Gross expenses......................... 598,766 296,636 189,946
Less: Fee waivers..................... -- (17,609) --
---------- ---------- ---------
Net Expenses........................ 598,766 279,027 189,946
---------- ---------- ---------
Net Investment Income (Loss)........... (308,878) 101,895 (151,917)
---------- ---------- ---------
Realized/Unrealized Gains (Losses) from
Investments:
Net realized gains (losses) from
investment transactions................ 3,527,001 1,450,216 789,827
Net change in unrealized appreciation
(depreciation) from investments........ 4,289,349 (154,519) (57,011)
---------- ---------- ---------
Net realized/unrealized gains (losses)
from investments....................... 7,816,350 1,295,697 732,816
---------- ---------- ---------
Change in net assets resulting from
operations............................. $7,507,472 $1,397,592 $ 580,899
========== ========== =========
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Riverfront Funds Six Months Ended June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
U.S. Government
Income U.S. Government Securities Money
Equity Fund Income Fund Market Fund
----------- --------------- ----------------
<S> <C> <C> <C>
Investment income:
Interest income................... $ 13,395 $ 1,168,860 $4,176,725
Dividend income................... 622,416 51,464 --
----------- ----------- ----------
Total income...................... 635,811 1,220,324 4,176,725
----------- ----------- ----------
Expenses:
Investment advisory fees.......... 255,029 81,242 128,618
Administration fees............... 48,008 35,635 150,357
12b-1 fees (Investor A)........... 48,876 49,106 214,194
12b-1 fees (Investor B)........... 71,712 6,524 --
Custodian and accounting fees..... 42,078 23,749 43,423
Audit and legal fees.............. 20,612 9,487 39,858
Trustees' fees and expenses....... 5,068 2,534 9,659
Transfer agent fees............... 39,820 21,720 16,010
Registration and filing fees...... 6,154 2,365 7,717
Printing costs.................... 14,481 5,792 22,068
Other............................. 2,715 1,268 5,051
----------- ----------- ----------
Gross expenses.................... 554,553 239,422 636,955
Less: Fee waivers................ (5,593) (11,756) (128,450)
----------- ----------- ----------
Net expenses................... 548,960 227,666 508,505
----------- ----------- ----------
Net Investment Income............. 86,851 992,658 3,668,220
----------- ----------- ----------
Realized/Unrealized Gains (Losses)
from Investments:
Net realized gains (losses) from
investment transactions........... (4,929,673) 274,228 --
Net change in unrealized
appreciation/depreciation from
investments....................... 6,545,567 (1,823,288) --
----------- ----------- ----------
Net realized/unrealized gains
(losses) from investments......... 1,615,894 (1,549,060) --
----------- ----------- ----------
Change in net assets resulting
from operations................... $ 1,702,745 $ (556,402) $3,668,220
=========== =========== ==========
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
Large Company Small Company
Select Fund Balanced Fund Select Fund
--------------------------- --------------------------- ---------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
1999 1998 1999 1998 1999 1998
-------------- ------------ -------------- ------------ -------------- ------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
Operations:
Net investment income
(loss)................ $ (308,878) $ (261,052) $ 101,895 $ 269,303 $ (151,917) $ (256,555)
Net realized gains
(losses) from
investment
transactions.......... 3,527,001 8,153,519 1,450,216 3,474,428 789,827 (101,284)
Net change in
unrealized
appreciation
(depreciation) from
investments........... 4,289,349 7,822,437 (154,519) 1,277,732 (57,011) (164,771)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
resulting from
operations............. 7,507,472 15,714,904 1,397,592 5,021,463 580,899 (522,610)
Distributions to
Shareholders:
Distributions to
Investor A Shareholders:
From net investment
income................. -- -- (74,714) (169,385) -- --
From net realized gains
from investments...... -- (6,012,066) -- (1,567,457) -- (2,744,106)
In excess of net
realized gains......... -- -- -- -- -- (35,043)
Distributions to
Investor B Shareholders:
From net investment
income................. -- -- (27,233) (99,893) -- --
From net realized gains
from investments...... -- (1,129,216) -- (1,864,419) -- (127,743)
In excess of net
realized gains......... -- -- -- -- -- (67,542)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from shareholder
distributions.......... -- (7,141,282) (101,947) (3,701,154) -- (2,974,434)
Capital Transactions:
Proceeds from shares
issued................. 20,454,459 13,309,662 5,957,106 3,341,172 1,749,027 1,954,127
Dividends reinvested... 274 7,080,161 74,196 3,609,340 -- 2,842,226
Cost of shares
redeemed............... (4,032,486) (4,824,558) (1,964,557) (4,174,349) (3,432,965) (6,135,730)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from capital
transactions........... 16,422,247 15,565,265 4,066,745 2,776,163 (1,683,938) (1,339,377)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets.... 23,929,719 24,138,887 5,362,390 4,096,472 (1,103,039) (4,836,421)
Net assets:
Beginning of period.... 60,216,476 36,077,589 25,142,320 21,045,848 20,741,158 25,577,579
----------- ----------- ----------- ----------- ----------- -----------
End of period.......... $84,146,195 $60,216,476 $30,504,710 $25,142,320 $19,638,119 $20,741,158
=========== =========== =========== =========== =========== ===========
Share Transactions:
Issued................. 1,382,792 1,025,833 435,922 244,765 223,810 223,267
Reinvested............. 20 511,275 5,510 271,327 -- 327,046
Redeemed............... (270,261) (375,134) (143,372) (309,204) (441,348) (711,763)
----------- ----------- ----------- ----------- ----------- -----------
Change in shares........ 1,112,551 1,161,974 298,060 206,888 (217,538) (161,450)
=========== =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
U.S. Government
Income Equity U.S. Government Securities Money
Fund Income Fund Market Fund
--------------------------- --------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
1999 1998 1999 1998 1999 1998
-------------- ------------ -------------- ------------ -------------- -------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
Operations:
Net investment income.. $ 86,851 $ 890,928 $ 992,658 $ 2,333,410 $ 3,668,220 $ 7,676,947
Net realized gains
(losses) from
investment
transactions.......... (4,929,673) 8,762,126 274,228 541,953 -- (2,666)
Net change in
unrealized
appreciation
(depreciation) from
investments........... 6,545,567 (6,788,439) (1,823,288) 286,081 -- --
------------ ------------ ----------- ----------- ------------- -------------
Change in net assets
resulting from
operations............. 1,702,745 2,864,615 (556,402) 3,161,444 3,668,220 7,674,281
Distributions to
Shareholders:
Distributions to
Investor A Shareholders:
From net investment
income................. (80,778) (832,004) (968,801) (2,287,710) (3,668,220) (7,676,947)
From net realized gains
from investments...... -- (7,878,594) -- -- -- --
In excess of net
realized gains......... -- (1,694,145) -- -- -- --
Distributions to
Investor B Shareholders:
From net investment
income................. (7,104) (58,765) (24,030) (45,525) -- --
From net realized gains
from investments...... -- (1,734,789) -- -- -- --
In excess of net
realized gains......... -- (294,053) -- -- -- --
------------ ------------ ----------- ----------- ------------- -------------
Change in net assets
from shareholder
distributions.......... (87,882) (12,492,350) (992,831) (2,333,235) (3,668,220) (7,676,947)
Capital transactions:
Proceeds from shares
issued................. 2,110,635 8,159,129 925,527 1,989,526 184,274,825 364,869,432
Dividends reinvested... 86,495 12,341,290 108,136 283,938 1,052,432 2,082,417
Cost of shares
redeemed............... (51,645,988) (18,569,826) (5,075,797) (8,722,844) (209,981,725) (320,671,126)
------------ ------------ ----------- ----------- ------------- -------------
Change in net assets
from capital
transactions........... (49,448,858) 1,930,593 (4,042,134) (6,449,380) (24,654,468) 46,280,723
------------ ------------ ----------- ----------- ------------- -------------
Change in net assets.... (47,833,995) (7,697,142) (5,591,367) (5,621,171) (24,654,468) 46,278,057
Net assets:
Beginning of period.... 93,706,648 101,403,790 44,705,257 50,326,428 188,846,814 142,568,757
------------ ------------ ----------- ----------- ------------- -------------
End of period.......... $ 45,872,653 $ 93,706,648 $39,113,890 $44,705,257 $ 164,192,346 $ 188,846,814
============ ============ =========== =========== ============= =============
Share transactions:
Issued................. 200,051 658,371 89,404 205,307 184,274,825 364,869,432
Reinvested............. 8,522 1,170,115 15,175 29,262 1,052,432 2,082,417
Redeemed............... (5,040,090) (1,565,735) (528,182) (907,353) (209,981,725) (320,671,126)
------------ ------------ ----------- ----------- ------------- -------------
Change in shares........ (4,831,517) 262,751 (423,603) (672,784) (24,654,468) 46,280,723
============ ============ =========== =========== ============= =============
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Large Company Select Fund
<TABLE>
<CAPTION>
Market
Shares Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (95.7%)
Apparel (2.6%)
33,825 Gap, Inc............................................... $ 1,703,934
9,450 Intimate Brands, Inc................................... 447,694
-----------
2,151,628
-----------
Automotive (0.7%)
10,000 Ford Motor Co.......................................... 564,375
-----------
Banks (5.8%)
14,000 Bank of America Corp................................... 1,026,375
7,000 Bank One Corporation................................... 416,938
6,000 Chase Manhattan Corp................................... 519,750
30,060 Citigroup Inc.......................................... 1,427,850
15,000 Fifth Third Bancorp.................................... 998,437
10,000 Mellon Bank Corp....................................... 363,750
2,800 Telebanc Financial Corp. (b)........................... 108,500
-----------
4,861,600
-----------
Beverages (1.3%)
17,500 Coca-Cola Co........................................... 1,093,750
-----------
Brokerage Services (0.9%)
9,035 Merrill Lynch & Co..................................... 722,235
-----------
Computers & Peripherals (13.3%)
59,060 Cisco Systems, Inc. (b)................................ 3,798,296
68,570 Dell Computer Corp. (b)................................ 2,537,090
60,070 EMC Corp-Mass (b)...................................... 3,303,850
12,000 IBM Corp............................................... 1,551,000
-----------
11,190,236
-----------
Consumer Goods & Services (2.2%)
11,000 Clorox Co.............................................. 1,174,938
8,000 Procter & Gamble Co.................................... 714,000
-----------
1,888,938
-----------
Cosmetics & Toiletries (0.4%)
8,000 Gillette Co............................................ 328,000
-----------
Diversified (7.5%)
9 Berkshire Hathaway, Inc. (b)........................... 620,100
29,000 General Electric Co.................................... 3,277,000
25,035 TYCO International Ltd................................. 2,372,066
-----------
6,269,166
-----------
Financial Services (6.9%)
8,000 American Express Co.................................... 1,041,000
25,000 Charles Schwab Corp.................................... 2,746,875
16,640 Fannie Mae Common...................................... 1,137,760
30,000 Firstar Corp........................................... 840,000
-----------
5,765,635
-----------
Insurance (2.4%)
17,000 American International GP.............................. 1,990,062
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Linen Supply & Related Items (1.5%)
19,000 Cintas Corp............................................ $ 1,276,563
-----------
Media (5.0%)
4,500 Clear Channel Comm. (b)................................ 310,219
4,000 Exodus Communications Inc. (b)......................... 479,750
8,000 Qwest Communications Intl. (b)......................... 264,500
20,000 SBC Communications, Inc................................ 1,160,000
28,040 Time Warner, Inc....................................... 2,018,880
-----------
4,233,349
-----------
Medical Supplies (1.4%)
12,000 Johnson & Johnson...................................... 1,176,000
-----------
Office Equipment & Supplies (Non-Computer Related) (0.8%)
9,900 Pitney-Bowes, Inc...................................... 636,075
-----------
Oil-Integrated Companies (1.7%)
12,190 Exxon Corp............................................. 940,154
7,500 Texaco, Inc............................................ 468,750
-----------
1,408,904
Pharmaceuticals (11.0%)
6,000 Amgen Inc. (b)......................................... 365,250
14,000 Bristol-Myers Squibb................................... 986,125
14,050 Cardinal Health Inc.................................... 900,956
15,040 Eli Lilly & Co......................................... 1,077,240
7,500 Kendle Intl. Inc. (b).................................. 120,000
19,440 Merck & Co., Inc....................................... 1,438,560
14,525 Pfizer, Inc............................................ 1,594,119
11,060 Schering-Plough........................................ 586,180
31,550 Warner-Lambert Co...................................... 2,188,781
-----------
9,257,211
-----------
Retails (10.9%)
34,050 Home Depot, Inc........................................ 2,194,097
52,600 Staples, Inc. (b)...................................... 1,627,312
70,000 Walgreen Co............................................ 2,056,250
68,060 Wal-Mart Stores, Inc................................... 3,283,895
-----------
9,161,554
-----------
Semiconductors (1.7%)
24,050 Intel Corp............................................. 1,430,975
-----------
Software & Computer Services (9.6%)
5,400 Amazon.com Inc. (b).................................... 675,675
30,020 America Online Inc. (b)................................ 3,317,210
3,000 Ebay Inc. (b).......................................... 454,125
38,050 Microsoft Corp. (b).................................... 3,431,634
1,250 Yahoo Inc. (b)......................................... 215,313
-----------
8,093,957
-----------
Telecommunications-Equipment (3.0%)
28,000 Lucent Technologies Inc................................ 1,888,250
</TABLE>
Continued
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds. June 30, 1999 (Unaudited)
Large Company Select Fund
<TABLE>
<CAPTION>
Market
Shares Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Telecommunications-Equipment, continued
8,000 Network Solution Inc. (b).............................. $ 633,000
-----------
2,521,250
-----------
Utilities-Telecommunications (5.3%)
40,000 A T & T Corp........................................... 2,232,500
26,030 MCI Worldcom Inc. (b).................................. 2,245,088
-----------
4,477,588
-----------
Total Common Stocks (Cost $52,380,304) 80,499,051
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Investment Companies (4.2%)
1,066,397 Dreyfus Treasury Prime Fund............................ $ 1,066,397
2,481,476 Fidelity Treasury Fund................................. 2,481,476
-----------
Total Investment Companies (Cost $3,547,873) 3,547,873
-----------
Total Investments (Cost $55,928,177) (a)--99.9% 84,046,924
Other assets in excess of liabilities--.1% 99,271
-----------
Total Net Assets--100.0% $84,146,195
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................................... $29,330,871
Unrealized depreciation................................... (1,212,124)
-----------
Net unrealized appreciation............................... $28,118,747
===========
</TABLE>
(b) Represents non-income producing securities.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Balanced Fund
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks (55.3%)
Banks (3.9%)
5,658 Bank of America Corp.................................. $ 414,802
3,000 Chase Manhattan Corp.................................. 259,875
6,000 Mellon Bank Corp...................................... 218,250
3,000 State Street Corp..................................... 256,125
700 Suntrust Banks Inc.................................... 48,606
-----------
1,197,658
-----------
Brokerage Service (1.1%)
2,000 Merrill Lynch & Co.................................... 159,875
1,700 Charles Schwab Corp................................... 186,787
-----------
346,662
-----------
Computers & Peripherals (9.7%)
16,000 Cisco Systems, Inc. (b)............................... 1,029,000
15,000 Dell Computer Corp (b)................................ 555,000
18,000 EMC Corp-Mass (b)..................................... 990,000
3,000 IBM Corp.............................................. 387,750
-----------
2,961,750
-----------
Consumer Products (0.2%)
1,050 Intimate Brands, Inc.................................. 49,744
-----------
Diversified (4.8%)
8,000 General Electric Co................................... 904,000
6,000 Tyco International Ltd................................ 568,500
-----------
1,472,500
-----------
Financial Services (2.8%)
7,500 Citigroup Inc......................................... 356,250
2,000 Fannie Mae Common..................................... 136,750
1,650 J.P. Morgan & Co...................................... 231,825
3,000 T Rowe Price Assoc.................................... 115,125
-----------
839,950
-----------
Insurance (0.8%)
2,000 American International Group.......................... 234,125
-----------
Linen Supply & Related Items (0.4%)
2,000 Cintas Corp........................................... 134,375
-----------
Medical Supplies (0.5%)
1,500 Johnson & Johnson..................................... 147,000
-----------
Media (2.6%)
11,000 Time Warner, Inc...................................... 792,000
-----------
Office Equipment & Supplies (Non-computer Related) (0.6%)
3,000 Pitney-Bowes, Inc..................................... 192,750
-----------
Oil-Integrated Companies (1.2%)
6,000 Texaco, Inc........................................... 375,000
-----------
Oil & Gas Exploration, Production & Services (0.7%)
3,500 Schlumberger, Ltd..................................... 222,906
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued
Pharmaceuticals (8.8%)
4,000 Bristol-Myers Squibb.................................. $ 281,750
4,500 Cardinal Health Inc................................... 288,563
4,000 Kendle Intl. Inc. (b)................................. 64,000
4,000 Eli Lilly & Co........................................ 286,500
2,000 Merck & Co., Inc...................................... 148,000
6,000 Pfizer, Inc........................................... 658,500
10,000 Schering-Plough....................................... 530,000
6,000 Warner-Lambert Co..................................... 416,250
-----------
2,673,563
-----------
Retail-Department Store (0.8%)
3,000 Kohl's Corp. (b)...................................... 231,563
-----------
Retail (9.0%)
10,000 Home Depot, Inc....................................... 644,375
24,000 Staples, Inc. (b)..................................... 742,500
16,000 Wal-Mart Stores, Inc.................................. 772,000
20,000 Walgreen Co........................................... 587,500
-----------
2,746,375
-----------
Software & Computer Services (3.6%)
1,000 America Online Inc. (b)............................... 110,500
10,000 Microsoft Corp. (b)................................... 901,875
1,157 Clear Channel Comm. (b)............................... 79,761
-----------
1,092,136
-----------
Telecommunications-Equipment (1.3%)
6,000 Lucent Technologies Inc............................... 404,625
-----------
Utilities-Telecommunications (2.5%)
6,000 AT&T Corp............................................. 334,875
5,000 MCI Worldcom Inc. (b)................................. 431,250
-----------
766,125
-----------
Total Common Stocks (Cost $12,615,699) 16,880,807
-----------
U.S. Treasury Notes (6.8%)
$1,000,000 4.875%, 3/31/01....................................... 989,790
1,000,000 7.25%, 5/15/16........................................ 1,099,300
-----------
Total U.S. Treasury Notes (Cost $2,125,858) 2,089,090
-----------
U.S. Government Agencies (28.3%)
Government National Mortgage Association (3.9%)
1,181,977 7%, 10/1/11, Pool #E00455............................. 1,187,307
-----------
Federal Home Loan Mortgage Corp. (3.2%)
1,000,000 6.59%, 7/23/08, Callable 7/23/99 @ 100................ 987,890
-----------
Federal National Mortgage Assoc. (21.2%)
1,500,000 4.85%, 7/19/99........................................ 1,496,295
300,000 6.95%, 11/13/2006..................................... 300,738
300,000 5.75%, 4/15/03........................................ 297,159
1,450,000 6.67%, 8/1/2001....................................... 1,472,620
</TABLE>
Continued
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Balanced Fund
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies, continued
Federal National Mortgage Assoc., continued
$ 500,000 6.89%, 07/12/2004.................................... $ 500,830
500,000 6.01%, 1/14/03....................................... 496,850
2,000,000 6.09%, 1/12/09....................................... 1,891,951
-----------
6,456,443
-----------
Total U.S. Governement Agencies (Cost $8,787,339) 8,631,640
-----------
Corporate Bonds (2.5%)
Banks (1.3%)
400,000 Chase Capital I, Series A, 7.67%, Callable 12/1/26, @
103.84, Guaranteed by Chase Manhattan Corp.......... 388,000
-----------
Financial Services (1.3%)
400,000 Ford Motor Credit Co., 6.25%, 12/8/05................ 388,500
-----------
Total Corporate Bonds (Cost $801,446) 776,500
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Investment Companies (6.6%)
$1,317,520 Fidelity Treasury Fund................................ $ 1,317,520
680,543 Dreyfus Treasury Prime Fund........................... 680,543
-----------
Total Investment Companies (Cost $1,998,063) 1,998,063
-----------
Total Investments (Cost $26,328,405) (a)--99.6% 30,376,100
Other assets in excess of liabilities--.4% 128,610
-----------
Total Net Assets--100.0% $30,504,710
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................... $4,432,354
Unrealized depreciation.................................... (384,659)
----------
Net unrealized appreciation................................ $4,047,695
==========
</TABLE>
(b) Represents non-income producing securities.
See Notes to Financial Statements
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Small Company Select Fund
<TABLE>
<CAPTION>
Market
Shares Value
------- --------------------------------------------------------- -----------
<C> <S> <C>
Common Stock (95.6%)
Apparel (4.5%)
8,000 Abercrombie & Fitch Class A (b).......................... $ 384,000
6,000 American Eagle Outfitters (b)............................ 273,000
3,000 Tommy Hilfiger Corp. (b)................................. 220,313
-----------
877,313
-----------
Airlines (2.1%)
20,000 Comair Holdings, Inc. (b)................................ 416,250
-----------
Automotive Parts (4.6%)
32,000 Gentex Corp. (b)......................................... 896,000
-----------
Banks (2.6%)
16,500 National Commerce Bancorp................................ 360,938
4,000 Telebanc Financial Corp. (b)............................. 155,000
-----------
515,938
-----------
Brokerage Services (4.4%)
22,500 Legg Mason Inc........................................... 866,250
-----------
Commercial Services (1.1%)
5,000 Quintiles Transnatl. Corp. (b)........................... 210,000
-----------
Computer & Peripherals (2.9%)
7,650 Comverse Technology, Inc. (b)............................ 577,575
-----------
Educational Institutions (1.1%)
9,600 DeVry Incorporated (b)................................... 214,800
-----------
Electrical Equipment (5.5%)
6,000 Benchmark Electronics Inc. (b)........................... 215,625
11,500 Sanmina Corp. (b)........................................ 872,563
-----------
1,088,188
-----------
Electronic & Electrical-General (1.4%)
14,000 American Power Con (b)................................... 281,750
-----------
Environmental Control (2.9%)
40,000 Catalytica Inc. (b)...................................... 560,000
-----------
Financial Services (5.9%)
10,000 Eaton Vance Corp......................................... 344,375
6,800 SEI Corp................................................. 600,100
5,000 Astoria Financial Corp................................... 219,688
-----------
1,164,163
-----------
Food Processing & Packaging (3.1%)
20,000 American Italian Pasta-A (b)............................. 607,500
-----------
Media (3.7%)
6,465 Clear Channel Comm....................................... 445,681
2,400 Exodus Communications Inc. (b)........................... 287,850
215 Destia Communications Inc................................ 2,661
-----------
736,192
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
------- --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Pharmaceuticals (12.9%)
60,000 Kendle Intl. Inc. (b).................................... $ 960,000
14,300 Medimmune Inc. (b)....................................... 968,825
5,800 VISX Inc. (b)............................................ 459,287
2,400 Express Scripts, Inc. (b)................................ 144,450
-----------
2,532,562
-----------
Printing & Publishing (1.4%)
5,000 Consolidated Graphics Inc. (b)........................... 250,000
5,000 Multi Color Corp. (b).................................... 31,875
-----------
281,875
-----------
Radio (2.8%)
10,000 Cox Radio Inc.-Class A (b)............................... 542,500
-----------
Restaurants (1.3%)
5,700 Papa John's Intl. (b).................................... 254,718
-----------
Retail-Specialty Stores (6.1%)
22,000 Bed Bath & Beyond, Inc. (b).............................. 847,000
7,000 O'Reilly Automotive Inc. (b)............................. 352,625
-----------
1,199,625
-----------
Semiconductors (7.2%)
15,000 Plexus Corp. (b)......................................... 451,875
14,200 Vitesse Semiconductor (b)................................ 957,612
-----------
1,409,487
-----------
Software & Computer Services (12.1%)
12,000 12 Technologies Inc. (b)................................. 516,000
6,000 Acxiom Corp. (b)......................................... 149,625
3,400 Ameritrade Holding Corp. A (b)........................... 360,400
800 Customtracks Corporation (b)............................. 44,750
800 DLJDirect (b)............................................ 23,600
7,200 E*Trade Group Inc. (b)................................... 287,550
100 Healtheon Corporation (b)................................ 7,700
100 Ivillage Inc. (b)........................................ 5,025
10,000 Lernout & Hauspie Speech (b)............................. 354,375
2,000 Macromedia Inc. (b)...................................... 70,500
2,000 Mercury Interactive Corp. (b)............................ 70,750
4,000 Realnetworks Inc. (b).................................... 275,500
6,000 Sportsline USA Inc. (b).................................. 215,250
-----------
2,381,025
-----------
Telecommunications (3.6%)
6,000 Mindspring Enterprises (b)............................... 265,875
3,000 Network Solution Inc. (b)................................ 237,375
2,000 Whittman-Hart Inc. (b)................................... 63,500
2,000 Novellus Systems Inc. (b)................................ 136,500
-----------
703,250
-----------
</TABLE>
Continued
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Small Company Select Fund
<TABLE>
<CAPTION>
Market
Shares Value
------- --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Textiles Products (1.2%)
8,000 Mohawk Industries, Inc. (b).............................. $ 243,000
-----------
Wholesale Distribution (1.1%)
6,000 Expeditors Intl. Wash Inc................................ 163,500
10,000 Packaged Ice Inc. (b).................................... 59,375
-----------
222,875
-----------
Total Common Stocks (Cost $14,966,269) 18,782,836
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
------- -------------------------------------------------------- -----------
<C> <S> <C>
Investment Companies (5.4%)
132,592 Dreyfus Treasury Prime Fund............................. $ 132,592
925,599 Fidelity Treasury Fund.................................. 925,599
-----------
Total Investment Companies (Cost $1,058,191) 1,058,191
-----------
Total Investments (Cost $16,024,460) (a)--101.0% 19,841,027
Liabilities in excess of other assets--(1.0)% (202,908)
-----------
Total Net Assets--100.0% $19,638,119
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................... $4,633,446
Unrealized depreciation.................................... (816,879)
----------
Net unrealized appreciation................................ $3,816,567
==========
</TABLE>
(b) Represents non-income producing securities.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Income Equity Fund
<TABLE>
<CAPTION>
Market
Shares Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (84.7%)
Automotive (2.0%)
10,150 Ford Motor Co.......................................... $ 572,841
5,250 General Motors Corp.................................... 346,500
-----------
919,341
-----------
Automotive Parts (1.0%)
23,675 Delphi Automotive Systems.............................. 439,467
-----------
Banks (16.9%)
15,946 Bank One Corporation................................... 949,784
16,006 Bank of America Corp................................... 1,173,440
8,600 Chase Manhattan Corp................................... 744,975
29,550 Citigroup Inc.......................................... 1,403,625
5,100 First Union Corp....................................... 239,700
8,700 First Virginia Bank, Inc............................... 427,388
6,500 Huntington Bancshares.................................. 227,500
4,025 J.P. Morgan & Co....................................... 565,512
15,250 Mellon Bank Corp....................................... 554,719
6,500 State Street Corp...................................... 554,938
21,900 Summit Bancorp......................................... 915,694
-----------
7,757,275
-----------
Brokerage Services (0.6%)
3,400 Merrill Lynch & Co..................................... 271,788
-----------
Chemicals-General (1.4%)
15,200 Rohm & Haas Co......................................... 651,700
-----------
Commercial Services (0.2%)
2,150 Ecolab Incorporated.................................... 93,794
-----------
Computer & Peripherals (4.1%)
4,500 Cisco Systems, Inc. (b)................................ 289,406
8,050 Dell Computer Corp. (b)................................ 297,850
9,100 EMC Corp-Mass (b)...................................... 500,500
7,975 Hewlett-Packard Co..................................... 801,488
-----------
1,889,244
-----------
Consumer Goods & Services (2.2%)
4,600 Clorox Co.............................................. 491,338
13,000 Fortune Brands Inc..................................... 537,875
-----------
1,029,213
-----------
Diversified (3.5%)
3,900 General Electric Co.................................... 440,700
6,325 Minnesota Mining & Mfg. Co............................. 549,880
6,325 Tyco International Ltd................................. 599,294
-----------
1,589,874
-----------
Electrical Equipment (1.1%)
8,150 Emerson Electric Company............................... 512,431
-----------
Electronic & Electronic-General (2.5%)
10,500 Rockwell Intl. Corp.................................... 637,875
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Electronic & Electronic-General, continued
11,500 Thomas & Betts Corp.................................... $ 543,375
-----------
1,181,250
-----------
Entertainment (1.2%)
18,350 The Walt Disney Co..................................... 565,409
-----------
Financial Services (2.9%)
5,850 Charles Schwab Corp.................................... 642,769
9,800 Fannie Mae Common...................................... 670,075
-----------
1,312,844
-----------
Food Processing & Packaging (1.5%)
25,000 Conagra Inc............................................ 665,625
-----------
Forest Products-Lumber & Paper (4.6%)
8,600 Kimberly-Clark Corp.................................... 490,200
12,800 Temple-Inland Inc...................................... 873,600
16,100 Willamette Industries Inc.............................. 741,606
-----------
2,105,406
-----------
Insurance (2.4%)
18,000 Allstate Corp.......................................... 645,750
3,900 American International GP.............................. 456,544
-----------
1,102,294
-----------
Linen Supply & Related Items (0.5%)
3,600 Cintas Corp............................................ 241,875
-----------
Manufacturing-Capital Goods (1.2%)
10,800 Cooper Industries, Inc................................. 561,600
-----------
Media (1.8%)
11,475 Time Warner, Inc....................................... 826,200
-----------
Medical Supplies (1.6%)
5,000 Bausch & Lomb, Inc..................................... 382,500
3,575 Johnson & Johnson...................................... 350,350
-----------
732,850
-----------
Office Equipment & Supplies (Non-Computer Related) (2.3%)
7,125 Pitney-Bowes, Inc...................................... 457,781
10,250 Xerox Corp............................................. 605,391
-----------
1,063,172
-----------
Oil & Gas Exploration, Production, & Services (3.7%)
10,600 Burlington Resources Inc............................... 458,450
15,500 Daimond Offshore Drill................................. 439,812
5,625 Enron Corp............................................. 459,844
5,225 Schlumberger, Ltd...................................... 332,767
-----------
1,690,873
-----------
Oil-Integrated Companies (7.5%)
6,200 Atlantic Richfield Co.................................. 518,087
15,200 Baker Hughes Inc....................................... 509,200
1,550 Chevron Corp........................................... 147,541
</TABLE>
Continued
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Income Equity Fund
<TABLE>
<CAPTION>
Market
Shares Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Oil-Integrated Companies, continued
6,000 Exxon Corp............................................. $ 462,750
7,400 Mobil Corp............................................. 732,600
8,000 Royal Dutch Petro-NY Shrs.............................. 482,000
9,425 Texaco, Inc............................................ 589,062
-----------
3,441,240
-----------
Oilfield Services & Equipment (1.1%)
11,400 Halliburton Co......................................... 515,850
-----------
Pharmaceuticals (3.9%)
5,300 Bristol-Myers Squibb................................... 373,319
3,900 Eli Lilly & Co......................................... 279,337
4,200 Merck & Co., Inc....................................... 310,800
4,300 Pfizer, Inc............................................ 471,925
4,900 Warner-Lambert Co...................................... 339,937
-----------
1,775,318
-----------
Publishing (0.5%)
4,000 McGraw Hill............................................ 215,750
-----------
Retail (0.9%)
6,600 Dayton-Hudson Corp..................................... 429,000
-----------
Restaurants (1.1%)
12,750 McDonald's Corp........................................ 526,734
-----------
Retail-Building Products (0.9%)
7,400 Lowe's Companies....................................... 419,488
-----------
Retail-Department Stores (2.3%)
3,200 Kohl's Corp. (b)....................................... 247,000
19,837 May Department Stores Co............................... 810,837
-----------
1,057,837
-----------
Semiconductors (2.7%)
9,050 Intel Corp............................................. 538,475
4,900 Texas Instruments, Inc................................. 710,500
-----------
1,248,975
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Telecommunications-Equipment (1.3%)
8,900 Lucent Technologies Inc.............................. $ 600,194
-----------
Utilities-Electric (3.1%)
12,000 Bec Energy........................................... 495,000
9,000 Cinergy Corp......................................... 288,000
4,225 Duke Power Co........................................ 229,734
17,600 Scana Corp........................................... 411,400
-----------
1,424,134
-----------
Utilities-Natural Gas (2.3%)
5,700 Nicor, Inc........................................... 216,956
10,100 People's Energy Corp................................. 380,644
14,200 Piedmont Natural Gas Co.............................. 441,975
-----------
1,039,575
-----------
Utilities-Telecommunications (7.0%)
27,300 A T & T Corp......................................... 1,523,681
9,500 Bell Atlantic........................................ 621,062
14,300 GTE Corp............................................. 1,082,331
-----------
3,227,074
-----------
Total Common Stocks (Cost $38,630,770) 43,124,694
-----------
Investment Companies (6.0%)
1,981,194 Fidelity Treasury Fund............................... 1,981,194
789,720 Dreyfus Treasury Prime Fund.......................... 789,720
-----------
Total Investment Companies (Cost $2,770,914) 2,770,914
-----------
Total Investments (Cost $41,401,684) (a)--100.1% 45,895,608
Liabilities in excess of other assets--(0.1)% (22,955)
-----------
Total Net Assets--100.0% $45,872,653
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................... $5,392,338
Unrealized depreciation.................................... (898,414)
----------
Net unrealized appreciation................................ $4,493,924
==========
</TABLE>
(b) Represents non-income producing securities.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
U.S. Government Income Fund
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds (23.4%)
Banks (5.2%)
$ 600,000 Chase Capital I, Series A, 7.67% 12/1/26, Callable
12/1/06 @ 103.84, Guaranteed by Chase Manhattan
Corp................................................ $ 582,000
500,000 Mellon Capital I, Series A, 7.72% 12/1/26, Callable
12/1/06 @103.86, Guaranteed by Mellon Bank Corp..... 487,500
1,000,000 Midland bank PLC (HSBC), 6.95% 3/15/11............... 972,500
-----------
2,042,000
-----------
Financial Services (14.9%)
1,000,000 American Express Master Trust, Series 1998-1, Class
A, 5.905, 4/15/04, ABS.............................. 989,280
362,772 Boatmen's Auto Trust, Series 1996-A, Class A3, 6.75%,
1/15/03, ABS........................................ 366,857
1,798,295 Countrywide Home Loans, Inc., Series 1998-11, Class
A10, 6.25%, 8/25/28, CMO............................ 1,787,918
1,000,000 Countrywide Home Loans, Inc., Series 1998-1, Class
AF2, 6.27%, 4/25/28, ABS............................ 999,590
998,652 Green Tree Home Improvement Loan Trust, Series 1997-
D, Class HEA4, 6.54%, 9/15/28....................... 1,002,497
419,081 Security Pacific Acceptance Corp., Series 1995-1,
Class A2, 6.70%, 4/10/20, ABS....................... 421,160
250,000 Toyota Motor Credit Corp., 7.13%, 9/26/06, Callable
9/26/99 @ 100, MTN.................................. 250,938
-----------
5,818,240
-----------
Food Processing & Packaging (1.3%)
500,000 McCormick & Co., Inc. 8.95%, 7/1/01.................. 525,625
-----------
Oil & Gas Transmission (0.9%)
356,000 Trans-Canada Pipelines Ltd., 6.77%, 4/30/01, MTN..... 357,780
-----------
Steel (0.5%)
200,000 Worthington Industries, Inc. 7.13%, 5/15/06.......... 196,500
-----------
Utilities-Electric & Gas (0.5%)
200,000 Oaklahoma Gas & Electric Co., 6.25%, 10/15/00........ 200,750
-----------
Total Corporate Bonds (Cost $9,235,318) 9,140,895
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies (61.6%)
Federal Home Loan Mortgage Corp. (8.2%)
$ 225,000 6.20%, 4/15/03....................................... $ 226,177
524,486 6.00%, 12/1/99, Gold Pool #M80147.................... 517,594
1,095,000 6.22%, 3/18/08....................................... 1,076,133
1,500,000 6.60%, 7/20/10....................................... 1,407,165
-----------
3,227,069
-----------
Federal National Mortgage Assoc. (37.8%)
1,000,000 6.71%, 3/13/02....................................... 1,003,590
632,608 6.00%, 2/01/03....................................... 621,816
727,976 6.00%, 5/1/03, Pool #347156.......................... 714,778
1,000,000 7.55%, 03/27/07, Series 07-B, Callable 3/27/00 @ 100. 1,002,590
1,000,000 6.50%, 12/25/07, Series 1993-43, Class H, CMO........ 998,840
1,000,000 6.00%, 5/15/08....................................... 973,140
1,000,000 5.25%, 01/15/09...................................... 916,790
1,000,000 6.03%, 2/2/09........................................ 938,970
1,000,000 6.40%, 05/14/09...................................... 973,750
2,000,000 6.38%, 6/15/09....................................... 1,993,360
2,003,066 5.50%, 4/1/24, Pool #280553.......................... 1,846,126
3,000,000 6.50%, 10/25/28, Series 1998-58, Class PC, CMO....... 2,812,650
-----------
14,796,400
-----------
Government National Mortgage Assoc. (7.3%)
439,893 7.00%, 11/15/08, Pool #363175........................ 442,462
502,851 7.00%, 1/15/09, Pool #363194......................... 505,797
1,559,256 7.00%, 2/15/09, Pool #383488......................... 1,568,363
332,607 8.00%, 5/15/23, Pool #351752......................... 340,959
-----------
2,857,581
-----------
Private Export Funding Corp. (2.6%)
1,000,000 6.24%, 5/15/02, Series VV, Guaranteed by Export-
Import Bank of The United States.................... 1,003,750
-----------
Federal Agricultural Mortgage Corp (2.4%)
1,000,000 5.90%, 3/3/09........................................ 957,551
-----------
Tennessee Valley Authority (3.2%)
1,250,000 6.24%, 7/15/45, Series B, Callable 7/15/20 @100,
Putable 7/15/01 @100................................ 1,268,750
-----------
Total U.S. Government Agencies (Cost $24,854,555) 24,111,101
-----------
</TABLE>
Continued
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
U.S. Government Income Fund
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Treasury Notes (11.2%)
$4,000,000 7.25%, 5/15/16........................................ $4,397,200
-----------
Total U.S. Treasury Notes (cost $4,507,831) 4,397,200
-----------
Investment Companies (3.3%)
1,292,850 Fidelity Treasury Fund................................ 1,292,850
-----------
Total Investment Companies (Cost $1,292,850) 1,292,850
-----------
Total Investments (Cost $39,890,554) (a)--99.6% 38,942,046
Other assets in excess of liabilities--.4% 171,844
-----------
Total Net Assets--100.0% $39,113,890
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................. $ 67,383
Unrealized depreciation.................................. (1,015,891)
-----------
Net unrealized depreciation.............................. $ (948,508)
===========
</TABLE>
ABS--Asset Backed Security
CMO--Collateralized Mortgage Obligation
MTN--Medium Term Note
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
U.S. Government Securities Money Market Fund
<TABLE>
<CAPTION>
Principal
Amount Value
----------- --------------------------------------------------- ------------
<C> <S> <C>
Commercial Paper (34.9%)
Agriculture (0.6%)
$ 1,000,000 Monsanto Co., Discount Note, 7/28/99............... $ 996,452
------------
Beverages (3.0%)
3,000,000 Coca-Cola, Discount Note, 7/23/99.................. 2,991,090
2,000,000 Coca-Cola, Discount Note, 7/21/99.................. 1,994,611
------------
4,985,701
------------
Brokerage Services (4.2%)
4,000,000 Merrill Lynch & Co., Inc., Discount Note 7/6/99.... 3,997,327
3,000,000 Merrill Lynch & Co., Inc., Discount Note, 2/1/00... 2,906,117
------------
6,903,444
------------
Financial Services (16.3%)
5,000,000 Associates Corp., Discount Note, 1/10/00........... 4,860,611
2,000,000 Ford Motor Credit Co., Discount Note, 7/9/99....... 1,997,876
3,000,000 Ford Motor Credit Co., Discount Note, 7/8/99....... 2,997,200
2,000,000 Ford Motor Credit Co., Discount Note, 7/12/99...... 1,997,079
4,000,000 General Electric Capital Corp., Discount Note,
7/9/99............................................ 3,995,751
2,000,000 General Electric Capital Corp., Discount Note,
7/13/99........................................... 1,996,794
4,000,000 General Motors Acceptance Corp., Discount Note,
7/16/99........................................... 3,991,967
5,000,000 IBM Credit Co., Discount Note, 7/1/99.............. 5,000,000
------------
26,837,278
------------
Manufacturing-Consumer Goods (1.2%)
2,000,000 Eaton Corp., Discount Note, 7/19/1999.............. 1,995,100
------------
Oil-Integrated Companies (2.4%)
4,000,000 Baker Hugh, Discount Note, 7/1/99.................. 4,000,000
------------
Pharmaceuticals (3.6%)
4,000,000 Glaxo Wellcome PLC, Discount Note, 8/16/99......... 3,975,160
2,000,000 Glaxo Wellcome PLC, Discount Note, 7/19/99......... 1,995,200
------------
5,970,360
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Commercial Paper, continued
Telecommunications (3.4%)
$ 3,600,000 BellSouth, Discount Note, 7/9/99.................... $ 3,596,048
2,000,000 BellSouth, Discount Note, 7/16/99................... 1,995,975
------------
5,592,023
------------
Total Commercial Paper
(Amortized Cost $57,280,358) 57,280,358
------------
U.S. Government Agencies (49.5%)
Federal Agricultural Mortgage Corp. (2.4%)
4,000,000 4.77%, 7/6/99....................................... 3,997,350
------------
Federal Home Loan Bank (12.8%)
4,000,000 5.01%, 2/3/00....................................... 4,000,000
2,000,000 4.95%, 2/17/00...................................... 1,997,701
3,000,000 5.04%, 2/25/00...................................... 2,999,135
4,000,000 5.16%, 3/8/00....................................... 4,004,041
2,000,000 4.98%, 3/29/00...................................... 1,997,866
3,000,000 5.04%, 3/29/00...................................... 3,000,598
3,000,000 Discount Note, 7/7/99............................... 2,997,640
------------
20,996,981
------------
Federal Home Loan Mortgage Corp. (14.6%)
4,000,000 4.77%, 7/14/99...................................... 3,993,110
3,000,000 4.75%, 7/16/99...................................... 2,994,063
8,128,000 4.93%, 8/12/99...................................... 8,081,104
5,000,000 4.94%, 8/19/99...................................... 4,966,516
4,000,000 Discount Note, 7/13/99.............................. 3,993,747
------------
24,028,540
------------
Federal National Mortgage Assoc. (19.7%)
3,000,000 4.74%, 7/2/99....................................... 2,999,605
3,000,000 4.70%, 7/23/99...................................... 2,991,383
2,000,000 5.86%, 7/30/99...................................... 2,001,434
1,800,000 6.01%, 8/16/99, MTN................................. 1,803,207
1,000,000 5.35%*, 8/19/99..................................... 995,710
3,015,000 5.05%, 08/27/99..................................... 2,990,893
3,000,000 5.08% 9/24/99, MTN.................................. 3,000,544
2,500,000 6.42%, 10/1/99...................................... 2,509,439
3,000,000 5.04% 2/23/00....................................... 3,000,000
4,000,000 4.98% 4/20/00....................................... 3,998,638
3,000,000 Discount Note, 9/1/99............................... 2,976,027
3,000,000 Discount Note, 4/12/00.............................. 2,998,851
------------
32,265,731
------------
Total U.S. Government Agencies
(Amortized Cost $81,288,602) 81,288,601
------------
</TABLE>
Continued
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
U.S. Government Securities Money Market Fund
<TABLE>
<CAPTION>
Principal
Amount Value
----------- --------------------------------------------------- ------------
<C> <S> <C>
Repurchase Agreements (15.7%)
$25,779,000 Morgan Stanley Dean Witter & Co., 4.75%, 7/1/99
(collateralized by U.S. Government securities).... $ 25,779,000
------------
Total Repurchase Agreements
(Amortized Cost $25,779,000) 25,779,000
------------
Total Investments
(Amortized Cost $164,347,960) (a)--101.9% 164,347,960
Liabilities in excess of other assets--(1.9)% (155,614)
------------
Total Net Assets--100.0% $164,192,346
============
</TABLE>
- -------
(a)Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate investments. The rate presented on the Schedule of Portfolio
Investments is the rate in effect at June 30, 1999.
MTN--Medium Term Note
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
1. Organization
The Riverfront Funds, Inc. was organized 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. Effective December 29, 1998, The
Riverfront Funds, Inc., a Maryland corporation, changed its form of
organization from that of a Maryland corporation to an Ohio business trust by
completing a reorganization with The Riverfront Funds, an Ohio business trust
(the "Trust"), created for such purpose. The Trust is authorized to issue six
series of shares of beneficial interest, without par value, representing
interests in different portfolios of securities as follows: The Riverfront
Large Company Select Fund, The Riverfront Balanced Fund, The Riverfront Small
Company Select Fund, The Riverfront Income Equity Fund, The Riverfront U.S.
Government Income Fund and The Riverfront U.S. Government Securities Money
Market Fund (each, a "Fund"; and collectively, the "Funds").
The investment objective of the Large Company Select Fund is to seek long term
growth of capital with current income as a secondary objective. 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 Small
Company Select Fund is to seek capital growth. The investment objective of the
Income Equity Fund is to seek a high level of investment income, with capital
appreciation as a secondary objective, through investment primarily in
income-producing equity securities of U.S. issuers. 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 mortgage-backed securities
and other asset-backed securities. 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 Trust is authorized to issue an unlimited number of shares of beneficial
interest, without par value. Sales of shares of the Funds 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 Large Company Select Fund, the Balanced Fund, the Small Company Select
Fund, the Income Equity Fund and the U.S. Government Income Fund (collectively,
"the variable net asset value funds") each offer 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 Funds' 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 Funds' prospectus. Investor B
Shares, other than those purchased through reinvestment of dividends, convert
automatically to Investor A Shares eight years after the date of their
issuance. A portion of the Investor B Shares purchased through dividend
reinvestment also converts automatically to Investor A Shares at such time.
Each share class has identical rights and privileges, except with respect to
(i) distribution and shareholder services (12b-1) fees paid by each share
class, (ii) voting rights on matters specifically affecting a single share
class, and (iii) the exchange privileges.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Funds 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 assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
reporting period. Actual results could differ from those estimates.
Continued
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Securities Valuation:
Investments of the money market fund are valued at amortized cost, which
approximates market value. 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 an
appropriate demand feature, or (b) maintain a dollar-weighted-average fund
maturity which exceeds 90 days, in each case calculated in accordance with Rule
2a-7 under the 1940 Act.
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 mean of the latest
available bid and asked quotations as of the close of trading on the New York
Stock Exchange (generally 4:00 p.m. Eastern time), or 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. 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 under the supervision of the
Trust's Board of Trustees. 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). Realized gains or losses from sales of securities are
determined on an identified cost basis. 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.
Repurchase Agreements:
The Funds may enter into repurchase agreements with financial institutions such
as banks and broker/dealers which Provident, as investment adviser, deems
creditworthy under guidelines approved by the Trust's Board of Trustees,
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 Fund plus interest negotiated on the basis of current short-term
rates, which may be more or less than the rate on the underlying fund
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 Fund's custodian or another qualified custodian or
in the Federal Reserve/Treasury book-entry system. Repurchase agreements are
considered to be loans by the Funds under the 1940 Act.
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 Small Company Select Fund which declares and pays any
dividends semiannually. Net investment losses incurred by a Fund are offset
against Capital to the extent that short-term gains are not available in a
given year in the accompanying Statements of Assets and Liabilities.
Continued
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
Distributable net realized capital gains, if any, are declared and distributed
at least annually for each of the Funds. 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 reclassification.
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 Funds to comply with all requirements of the Internal
Revenue Code of 1986, as amended (the Code) applicable to regulated investment
companies and to distribute substantially all of their taxable income to their
shareholders; therefore, no federal tax provision is required.
As of December 31, 1998, the following Funds had capital loss carryforwards for
tax purposes which are available to offset future capital gains, if any:
<TABLE>
<CAPTION>
Capital Loss
Carryforward Expires
------------ -------
<S> <C> <C>
Small Company Select Fund................................ $ 90,491 2006
U.S. Government Income Fund.............................. 4,366 2002
U.S. Government Income Fund.............................. 516,479 2003
U.S. Government Securities Money Market Fund............. 875 2002
U.S. Government Securities Money Market Fund............. 1,415 2003
U.S. Government Securities Money Market Fund............. 28 2005
U.S. Government Securities Money Market Fund............. 3,779 2006
</TABLE>
Under current tax law, capital losses realized subsequent to October 31 of the
current fiscal year may be deferred and treated as occurring on the first day
of the following fiscal year. The following deferred losses will be treated as
arising on the first day of the fiscal year ended December 31, 1999:
<TABLE>
<CAPTION>
Post-October
Capital Losses
--------------
<S> <C>
Income Equity Fund............................................. $ 590,485
U.S. Government Income Fund.................................... 31,168
U.S. Government Securities Money Market Fund................... 318
</TABLE>
Other
Expenses that are directly related to one of the Funds are charged directly to
that Fund. Other operating expenses of the Trust are prorated to the Funds,
generally on the basis of relative net assets. Fees paid under a Fund's
shareholder servicing or distribution plans are borne by the specific class of
shares to which they apply.
All expenses in connection with the organization of the Large Company Select
Fund and the registration of its shares under the Securities Act of 1933, as
amended, were paid by the Fund. Such expenses are being amortized over a period
of five years commencing with the inception date of the Fund.
Continued
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
3. Purchases and Sales of Securities
Purchases and sales of securities (excluding short-term securities) for the six
months ended June 30, 1999 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Large Company Select Fund............................ $25,953,584 $ 8,717,322
Balanced Fund........................................ 10,187,043 7,723,830
Small Company Select Fund............................ 7,539,543 9,352,219
Income Equity Fund................................... 41,409,970 93,317,259
U.S. Government Income Fund.......................... 22,489,669 25,113,126
</TABLE>
4. Capital Share Transactions
Transactions in capital shares for the Funds were as follows:
<TABLE>
<CAPTION>
Large Company Select Fund
---------------------------
Six Months Year Ended
Ended June 30, December 31,
1999 1998
-------------- ------------
(unaudited)
<S> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares issued...................... $11,176,988 $ 7,462,897
Dividends reinvested............................. 22 6,003,616
Shares redeemed.................................. (3,062,836) (3,998,246)
----------- -----------
Change in net assets from Investor A share
transactions.................................... $ 8,114,174 $ 9,468,267
=========== ===========
Investor B Shares:
Proceeds from shares issued...................... $ 9,277,470 $ 5,846,765
Dividends reinvested............................. 253 1,076,545
Shares redeemed.................................. (969,650) (826,312)
----------- -----------
Change in net assets from Investor B share
transactions.................................... $ 8,308,073 $ 6,096,998
=========== ===========
SHARE TRANSACTIONS:
Investor A Shares:
Issued........................................... 750,129 569,741
Reinvested....................................... 2 432,540
Redeemed......................................... (205,002) (309,699)
----------- -----------
Change in Investor A Shares...................... 545,129 692,582
=========== ===========
Investor B Shares:
Issued........................................... 632,663 456,092
Reinvested....................................... 18 78,735
Redeemed......................................... (65,259) (65,435)
----------- -----------
Change in Investor B Shares...................... 567,422 469,392
=========== ===========
</TABLE>
Continued
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
4. Capital Share Transactions, continued:
<TABLE>
<CAPTION>
Balanced Fund Small Company Select Fund
--------------------------- ---------------------------
Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31,
1999 1998 1999 1998
-------------- ------------ -------------- ------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued............... $ 2,786,463 $ 1,816,435 $ 1,518,229 $ 1,355,158
Dividends reinvested.. 56,246 1,709,409 -- 2,647,256
Shares redeemed....... (901,594) (2,408,823) (3,124,019) (5,805,686)
----------- ----------- ----------- -----------
Change in net assets
from Investor A
shares transactions.. $ 1,941,115 $ 1,117,021 $(1,605,790) $(1,803,272)
=========== =========== =========== ===========
Investor B Shares:
Proceeds from shares
issued............... $ 3,170,643 $ 1,524,737 $ 230,798 $ 598,969
Dividends reinvested.. 17,950 1,899,931 -- 194,970
Shares redeemed....... (1,062,963) (1,765,526) (308,946) (330,044)
----------- ----------- ----------- -----------
Change in net assets
from Investor B share
transactions......... $ 2,125,630 $ 1,659,142 $ (78,148) $ 463,895
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................ 208,021 135,447 194,876 157,466
Reinvested............ 4,210 131,021 -- 305,335
Redeemed.............. (66,855) (181,427) (402,024) (669,783)
----------- ----------- ----------- -----------
Change in Investor A
Shares................ 145,376 85,041 (207,148) (206,982)
=========== =========== =========== ===========
Investor B Shares:
Issued................ 227,901 109,318 28,934 65,801
Reinvested............ 1,300 140,306 -- 21,711
Redeemed.............. (76,517) (127,777) (39,324) (41,980)
----------- ----------- ----------- -----------
Change in Investor B
Shares............... 152,684 121,847 (10,390) 45,532
=========== =========== =========== ===========
</TABLE>
Continued
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
4. Capital Share Transactions, continued:
<TABLE>
<CAPTION>
Income Equity Fund U.S. Government Income Fund
--------------------------- ---------------------------
Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31,
1999 1998 1999 1998
-------------- ------------ -------------- ------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued............... $ 1,806,605 $ 4,928,919 $ 595,229 $ 1,870,036
Dividends reinvested.. 79,709 10,320,240 92,484 247,700
Shares redeemed....... (47,784,779) (14,154,051) (4,982,529) (8,523,069)
------------ ------------ ----------- -----------
Change in net assets
from Investor A share
transactions......... $(45,898,465) $ 1,095,108 $(4,294,816) $(6,405,333)
============ ============ =========== ===========
Investor B Shares:
Proceeds from shares
issued............... $ 304,030 $ 3,230,210 $ 330,298 $ 119,490
Dividends reinvested.. 6,786 2,021,050 15,652 36,238
Shares redeemed....... (3,861,209) (4,415,775) (93,268) (199,775)
------------ ------------ ----------- -----------
Change in net assets
from Investor B share
transactions......... $ (3,550,393) $ 835,485 $ 252,682 $ (44,047)
============ ============ =========== ===========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................ 171,770 405,411 62,452 194,328
Reinvested............ 7,866 981,947 9,724 25,909
Redeemed.............. (4,678,185) (1,197,255) (519,511) (888,903)
------------ ------------ ----------- -----------
Change in Investor A
Shares............... (4,498,549) 190,103 (447,335) (668,666)
============ ============ =========== ===========
Investor B Shares:
Issued................ 28,281 252,960 26,952 10,979
Reinvested............ 656 188,168 5,451 3,353
Redeemed.............. (361,905) (368,480) (8,671) (18,450)
------------ ------------ ----------- -----------
Change in Investor B
Shares................ (332,968) 72,648 23,732 (4,118)
============ ============ =========== ===========
</TABLE>
5. Investment Advisory Fee and Other Transactions with Affiliates
Investment Advisory Fee--Provident Investment Advisors, Inc., the Fund's
investment adviser (the "Adviser"), has entered into an Investment Advisory
Agreement with the Trust whereby the Adviser supervises and manages the
investment and reinvestment of the assets of the Funds. Under the terms of the
Investment Advisory Agreement, the Adviser is entitled to receive fees based on
a percentage of the average daily net assets of each Fund as listed below. The
Adviser may voluntarily choose to waive any portion of its fee. The Adviser can
modify or terminate this voluntary waiver at any time at its sole discretion.
Continued
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Riverfront Funds June 30, 1999 (Unaudited)
5. Investment Advisory Fee and Other Transactions with Affiliates, continued:
<TABLE>
<CAPTION>
Fund Annual Rate
---- -----------
<S> <C>
Large Company Select Fund......................................... 0.80%
Balanced Fund..................................................... 0.90%
Small Company Select Fund......................................... 0.80%
Income Equity Fund................................................ 0.95%
Income Fund....................................................... 0.40%
Money Market Fund................................................. 0.15%
</TABLE>
Administration--Federated Services Company ("FServ"), under an Administrative
Services Agreement with the Trust, provides the Funds with certain
administrative personnel and services. The fee paid to FServ is equal to 0.17%
of the average daily net assets of each Fund.
Distribution Services Fee--Edgewood Services, Inc., ("Distributor") is the
distributor of the Trust. The Trust has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act. Under the terms of the Plan,
the Funds will compensate the Distributor from the net assets of the fund to
finance activities intended to result in the sale of the Fund's Investor A
Shares and Investor B Shares. The Plan provides that the Funds may incur annual
distribution expenses up to 0.25% of the average daily net assets of each
Fund's Investor A Shares and up to 0.75% of the average daily net assets of
each Fund's Investor B Shares to compensate the Distributor. The Distributor
does not retain these amounts generally, but uses the fee to compensate
investment professionals such as banks, broker/dealers, trust departments of
banks, and registered investment advisers, for marketing activities (such as
advertising, printing and distributing prospectuses, and providing incentives
to investment professionals), to promote sales of Shares so that overall Fund
assets are maintained or increased.
Shareholder Service Fee--Under the terms of a Shareholder Services Agreement,
the Funds may pay compensation, in an amount not to exceed 0.25% of the average
daily net assets of each Fund's Investor B Shares, to banks and other financial
institutions including Provident and its affiliates and the Distributor for
providing shareholder services and maintaining shareholder accounts. As of June
30, 1999, there were no shareholder servicing agreements entered into on behalf
of the Investor A Shares of any of the Funds.
Custodian, Fund Accounting and Recordkeeping Fees--Provident serves as
custodian and fund accountant to the Funds. 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 Fund.
Transfer and Dividend Disbursing Agent Fees and Expenses--Provident serves as
transfer agent and dividend disbursing agent to the Trust. Under the terms of
the Master Transfer and Recordkeeping Agreement, Provident is entitled to
receive fees based on the number of shareholders of each Fund and to be
reimbursed for certain out-of-pocket expenses.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
Large Company Select Fund
-----------------------------------------------------------------------------
From January 2,
Six Months Ended Year Ended 1997 through
June 30, 1999 December 31, 1998 December 31, 1997 (a)
------------------------- ---------------------- ------------------------
Investor A Investor B Investor A Investor B Investor A Investor B
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 13.89 $ 13.69 $ 11.34 $11.28 $ 10.00 $10.00
------- ------- ------- ------ ------- ------
Investment Activities
Net investment loss..... (0.05) (0.08) (0.05) (0.10) (0.00) (0.04)
Net realized and
unrealized gains
(losses) from
investments............ 1.65 1.59 4.47 4.38 2.77 2.72
------- ------- ------- ------ ------- ------
Total from Investment
Activities............. 1.60 1.51 4.42 4.28 2.77 2.68
------- ------- ------- ------ ------- ------
Distributions
Net realized gains...... -- -- (1.87) (1.87) (1.40) (1.40)
Tax return of capital... -- -- -- -- (0.03) --
------- ------- ------- ------ ------- ------
Total Distributions..... -- -- (1.87) (1.87) (1.43) (1.40)
------- ------- ------- ------ ------- ------
Net Asset Value, End of
Period.................. $ 15.49 $ 15.20 $ 13.89 $13.69 $ 11.34 $11.28
======= ======= ======= ====== ======= ======
Total Return (excludes
sales/redemption
charge)................. 11.52%(b) 11.03%(b) 39.03% 38.00% 27.93%(b) 26.97%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $65,066 $19,080 $50,801 $9,416 $33,614 $2,464
Ratio of expenses to
average net assets...... 1.52%(c) 2.26%(c) 1.66% 2.41% 1.69%(c) 2.47%(c)
Ratio of net investment
loss to average net
assets.................. (0.71)%(c) (1.46)%(c) (0.48)% (1.28)% 0.00%(c) (1.10)%(c)
Portfolio Turnover (d)... 12% 12% 69% 69% 39% 39%
</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.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
Balanced Fund
-------------------------------------------------------------------------------------------------
Six Months Ended Years Ended December 31,
June 30, -----------------------------------------------------------------
1999 1998 1997 1996
------------------------- --------------------- --------------------- ---------------------
Investor A Investor B 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.... $ 13.04 $ 13.56 $ 12.30 $ 12.71 $11.69 $ 12.04 $11.36 $ 11.70
------- ------- ------- ------- ------ ------- ------- -------
Investment Activities
Net investment income.. 0.08 0.02 0.23 0.11 0.23 0.12 0.31 0.26
Net realized and
unrealized gains
(losses) from
investments........... 0.63 0.65 2.84 2.95 1.71 1.77 0.33 0.34
------- ------- ------- ------- ------ ------- ------- -------
Total from Investment
Activities............ 0.71 0.67 3.07 3.06 1.94 1.89 0.64 0.60
------- ------- ------- ------- ------ ------- ------- -------
Distributions
Net investment income.. (0.08) (0.02) (0.23) (0.11) (0.23) (0.12) (0.31) (0.26)
In excess of net
investment income..... -- -- (2.10) (2.10) (1.10) (1.10) -- --
------- ------- ------- ------- ------ ------- ------- -------
Total Distributions.... (0.08) (0.02) (2.33) (2.21) (1.33) (1.22) (0.31) (0.26)
------- ------- ------- ------- ------ ------- ------- -------
Net Asset Value, End of
Period................. $ 13.67 $ 14.21 $ 13.04 $ 13.56 $12.30 $ 12.71 $ 11.69 $ 12.04
======= ======= ======= ======= ====== ======= ======= =======
Total Return
(excludes
sales/redemption
charge)................ 5.45%(a) 4.97%(a) 25.29% 24.34% 16.77% 15.82% 5.76% 5.27%
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $13,773 $16,732 $11,247 $13,895 $9,563 $11,483 $10,786 $10,008
Ratio of expenses to
average net assets..... 1.58%(b) 2.39%(b) 1.69% 2.50% 1.86% 2.72% 1.70% 2.54%
Ratio of net investment
income to average net
assets................. 1.19%(b) 0.38%(b) 1.65% 0.84% 1.80% 0.93% 2.87% 2.03%
Ratio of expenses to
average net assets*.... 1.74%(b) 2.49%(b) 1.85% 2.60% 2.07% 2.82% 1.94% 2.68%
Ratio of net investment
income to average net
assets*................ 1.03%(b) 0.28%(b) 1.49% 0.74% 1.59% 0.83% 2.63% 1.89%
Portfolio Turnover (c).. 31% 31% 118% 118% 102% 102% 98% 98%
</TABLE>
- -------
* During the reporting 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) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
Balanced Fund
---------------------------------------------
January 17, From September 1,
Year Ended 1995 to 1994 through
December 31, December 31, December 31,
1995 1995 (a) 1994 (a)(f)
------------ ------------ -----------------
Investor A Investor B
------------ ------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.79 $10.00 $10.00
------ ------ ------
Investment Activities
Net investment income.. 0.35 0.25 0.10
Net realized and
unrealized gains
(losses) from
investments........... 1.66 1.79 (0.18)
------ ------ ------
Total from Investment
Activities............ 2.01 2.04 (0.08)
------ ------ ------
Distributions
Net investment income.. (0.34) (0.24) (0.13)
In excess of net
investment income..... (0.10) (0.10) --
------ ------ ------
Total Distributions.... (0.44) (0.34) (0.13)
------ ------ ------
Net Asset Value, End of
Period................. $11.36 $11.70 $ 9.79
====== ====== ======
Total Return (excludes
sales/redemption
charge)................ 20.83% 20.53%(b) (0.82)%(c)
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $9,427 $5,030 $2,709
Ratio of expenses to
average net assets..... 1.28% 2.04%(d) 1.48%
Ratio of net investment
income to average net
assets................. 3.48% 2.69%(d) 4.01%
Ratio of expenses to
average net assets*.... 1.67% 2.84%(d) 0.88%
Ratio of net investment
income to average net
assets*................ 3.09% 1.89%(d) 4.61%
Portfolio Turnover (e).. 13% 13% 1%
</TABLE>
- -------
* During the reporting 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.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
Small Company Select Fund
--------------------------------------------------------------------------------------------------
Six Months Ended Years Ended December 31,
June 30, --------------------------------------------------------------------
1999 1998 1997 1996
-------------------------- ---------------------- ---------------------- ----------------------
Investor A Investor B Investor A Investor B Investor A Investor B Investor A Investor B
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period............. $ 7.89 $ 8.14 $ 9.17 $ 9.49 $ 9.43 $ 9.77 $ 9.50 $ 9.91
------- ------ ------- ------ ------- ------ ------- ------
Investment
Activities
Net investment
loss.............. (0.06) (0.09) (0.09) (0.15) (0.04) (0.08) (0.14) (0.15)
Net realized and
unrealized gains
(losses) from
investments....... 0.32 0.32 (0.01) (0.02) 1.75 1.77 1.10 1.04
------- ------ ------- ------ ------- ------ ------- ------
Total from
Investment
Activities........ 0.26 0.23 (0.10) (0.17) 1.71 1.69 0.96 0.89
------- ------ ------- ------ ------- ------ ------- ------
Distributions
In excess of net
investment income. -- -- (1.18) (1.18) (1.97) (1.97) (1.03) (1.03)
------- ------ ------- ------ ------- ------ ------- ------
Total
Distributions..... -- -- (1.18) (1.18) (1.97) (1.97) (1.03) (1.03)
------- ------ ------- ------ ------- ------ ------- ------
Net Asset Value,
End of Period...... $ 8.15 $ 8.37 $ 7.89 $ 8.14 $ 9.17 $ 9.49 $ 9.43 $ 9.77
======= ====== ======= ====== ======= ====== ======= ======
Total Return
(excludes
sales/redemption
charge)............ 3.30%(a) 2.83%(a) (2.26)% (2.96)% 18.79% 17.86% 10.17% 9.05%
Ratios/Supplementary Data:
Net Assets at end of
period (000)....... $18,227 $1,411 $19,286 $1,455 $24,312 $1,265 $31,227 $ 687
Ratio of expenses to
average net assets. 1.93%(b) 2.68%(b) 1.97% 2.72% 2.11% 2.86% 1.91% 2.64%
Ratio of net
investment income
(loss) to average
net assets......... (1.53)%(b) (2.28)%(b) (1.08)% (1.88)% (0.43)% (1.20)% (1.25)% (2.01)%
Ratio of expenses to
average net
assets*............ 1.93%(b) 2.68%(b) 1.97% 2.72% 2.11% 2.86% 1.91% 2.64%
Ratio of net
investment income
(loss) to average
net assets*........ (1.53)%(b) (2.28)%(b) (1.08)% (1.88)% (0.43)% (1.20)% (1.25)% (2.01)%
Portfolio Turnover
(c)................ 40% 40% 114% 114% 67% 67% 162% 162%
</TABLE>
- -------
* During the reporting 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) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
Company Select Fund
-------------------------------------------
October 1, 1995 to Year Ended
December 31, September 30,
1995 (a)(b) 1995 (f)
------------------------- -------------
Investor A Investor B
---------- ----------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 10.00 $10.00 $ 8.25
------- ------ -------
Investment Activities
Net investment loss..... (0.01) (0.01) (0.07)
Net realized and
unrealized gains
(losses) from
investments............ (0.12) (0.08) 2.14
------- ------ -------
Total from Investment
Activities............. (0.13) (0.09) 2.07
------- ------ -------
Distributions
In excess of net
investment income...... (0.37) -- (0.32)
------- ------ -------
Total Distributions..... (0.37) -- (0.32)
------- ------ -------
Net Asset Value,
End of Period........... $ 9.50 $ 9.91 $ 10.00
======= ====== =======
Total Return (excludes
sales/redemption
charge)................. (1.20)%(c) (0.90)%(c) 25.12%
Ratios/Supplementary Data:
Net Assets at end of
period (000)............ $40,995 $ 72 $44,500
Ratio of expenses to
average net assets...... 1.76%(d) 2.30%(d) 2.61%
Ratio of net investment
income (loss) to average
net assets.............. (0.49)%(d) (1.69)%(d) (0.73)%
Ratio of expenses to
average net assets*..... 1.77%(d) 2.39%(d) 2.61%
Ratio of net investment
income (loss) to average
net assets*............. (0.50)%(d) (1.78)%(d) (0.73)%
Portfolio Turnover (e)... 46% 46% 197%
</TABLE>
- -------
* During the reporting 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 Small Company Select 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 Small Company Select 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.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
Income Equity Fund
-------------------------------------------------------------------------------------------------
Six Months Ended Years Ended December 31,
June 30, -----------------------------------------------------------------
1999 1998 1997 1996
------------------------- --------------------- --------------------- ---------------------
Investor A Investor B Investor A Investor B Investor A
Investor B Investor A Investor B
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.47 $ 10.76 $ 11.68 $ 11.98 $ 11.92 $ 12.16 $ 11.70 $11.85
------- ------- ------- ------- ------- ------- ------- ------
Investment Activities
Net investment income.. 0.04 (0.00) 0.12 0.03 0.16 0.06 0.21 0.12
Net realized and
unrealized gains
from investments...... 0.70 0.72 0.25 0.25 3.11 3.17 2.12 2.21
------- ------- ------- ------- ------- ------- ------- ------
Total from Investment
Activities............ 0.74 0.72 0.37 0.28 3.27 3.23 2.33 2.33
------- ------- ------- ------- ------- ------- ------- ------
Distributions
Net investment income.. (0.03) (0.01) (0.12) (0.04) (0.16) (0.06) (0.21) (0.12)
Net realized gains..... -- -- (1.46) (1.46) (3.35) (3.35) (1.90) (1.90)
------- ------- ------- ------- ------- ------- ------- ------
Total Distributions.... (0.03) (0.01) (1.58) (1.50) (3.51) (3.41) (2.11) (2.02)
------- ------- ------- ------- ------- ------- ------- ------
Net Asset Value,
End of Period.......... $ 11.18 $ 11.47 $ 10.47 $ 10.76 $ 11.68 $ 11.98 $ 11.92 $12.16
======= ======= ======= ======= ======= ======= ======= ======
Total Return
(excludes
sales/redemption
charge)................ 7.06%(c) 6.65%(c) 3.37% 2.51% 28.20% 27.19% 19.88% 19.67%
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $32,041 $13,832 $77,144 $16,563 $83,841 $17,563 $73,368 $7,632
Ratio of expenses to
average net assets..... 1.84%(a) 2.64%(a) 1.76% 2.54% 1.75% 2.55% 1.76% 2.48%
Ratio of net investment
income to average net
assets................. 0.49%(a) (0.13)%(a) 1.03% 0.25% 1.21% 0.40% 1.62% 0.88%
Ratio of expenses to
average net assets*.... 1.87%(a) 2.64%(a) 1.79% 2.54% 1.80% 2.55% 1.85% 2.54%
Ratio of net investment
income to average net
assets*................ 0.46%(a) (0.13)%(a) 1.00% 0.25% 1.16% 0.40% 1.53% 0.82%
Portfolio Turnover (b).. 92% 92% 129% 129% 157% 157% 166% 166%
</TABLE>
- -------
* During the reporting 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) Annualized.
(b) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(c) Not annualized. See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
Income Equity Fund
---------------------------------------
January 17,
Year Ended 1995 to Year Ended
December 31, December 31, December 31,
1995 1995 (a) 1994 (e)
------------ ------------ ------------
Investor A Investor B
------------ ------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.15 $10.00 $ 10.63
------- ------ -------
Investment Activities
Net investment income.. 0.27 0.13 0.32
Net realized and
unrealized gains from
investments........... 2.89 2.78 0.00
------- ------ -------
Total from Investment
Activities............ 3.16 2.91 0.32
------- ------ -------
Distributions
Net investment income.. (0.27) (0.13) (0.31)
Net realized gains..... (1.34) (0.93) (0.49)
------- ------ -------
Total Distributions.... (1.61) (1.06) (0.80)
------- ------ -------
Net Asset Value,
End of Period.......... $ 11.70 $11.85 $ 10.15
======= ====== =======
Total Return (excludes
sales/redemption
charge)................ 31.45% 29.28%(d) 3.08%
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $60,845 $2,833 $34,965
Ratio of expenses to
average net assets..... 1.49% 2.46%(b) 1.30%
Ratio of net investment
income to average net
assets................. 2.27% 1.12%(b) 2.93%
Ratio of expenses to
average net assets*.... 1.74% 2.51%(b) 1.58%
Ratio of net investment
income to average net
assets*................ 2.02% 1.07%(b) 2.65%
Portfolio Turnover (c).. 180% 180% 119%
</TABLE>
- -------
* During the reporting 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) Annualized.
(c) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(d) 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.
(e) Audited by other auditors.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
<TABLE>
<CAPTION>
U.S. Government Income Fund
-----------------------------------------------------------------------------------------------
Six Months Ended Years Ended December 31,
June 30, -----------------------------------------------------------------
1999 1998 1997 1996
-------------------------- --------------------- --------------------- ---------------------
Investor A Investor B Investor A Investor B Investor A Investor B Investor A Investor B
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.65 $10.93 $ 9.48 $10.68 $ 9.43 $10.64 $ 9.71 $10.95
------- ------ ------- ------ ------- ------ ------- ------
Investment Activities
Net investment income.. 0.23 0.21 0.47 0.44 0.49 0.48 0.52 0.49
Net realized and
unrealized gains
(losses) from
investments........... (0.37) (0.41) 0.17 0.19 0.14 0.14 (0.29) (0.31)
------- ------ ------- ------ ------- ------ ------- ------
Total from Investment
Activities............ (0.14) (0.20) 0.64 0.63 0.63 0.62 0.23 0.18
------- ------ ------- ------ ------- ------ ------- ------
Distributions
Net investment income.. (0.23) (0.19) (0.47) (0.38) (0.50) (0.49) (0.51) (0.49)
In excess of net
investment income..... -- -- -- -- (0.08) (0.09) -- --
------- ------ ------- ------ ------- ------ ------- ------
Total Distributions.... (0.23) (0.19) (0.47) (0.38) (0.58) (0.58) (0.51) (0.49)
------- ------ ------- ------ ------- ------ ------- ------
Net Asset Value,
End of Period.......... $ 9.28 $10.54 $ 9.65 $10.93 $ 9.48 $10.68 $ 9.43 $10.64
======= ====== ======= ====== ======= ====== ======= ======
Total Return
(excludes
sales/redemption
charge)................ (1.43)%(c) (1.84)%(c) 6.95% 6.03% 6.94% 6.07% 2.51% 1.72%
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $37,615 $1,499 $43,411 $1,294 $49,017 $1,309 $33,694 $1,296
Ratio of expenses to
average net assets..... 1.10%(a) 1.90%(a) 1.12% 1.93% 1.14% 1.95% 1.11% 1.96%
Ratio of net investment
income to average net
assets................. 4.92%(a) 4.12% 4.90% 4.09% 5.40% 4.56% 5.45% 4.59%
Ratio of expenses to
average net assets*.... 1.16%(a) 1.90%(a) 1.18% 1.93% 1.20% 1.95% 1.20% 1.96%
Ratio of net investment
income to average net
assets*................ 4.86%(a) 4.12%(a) 4.84% 4.09% 5.34% 4.56% 5.36% 4.59%
Portfolio Turnover (b).. 60% 60% 109% 109% 71% 71% 53% 53%
</TABLE>
- -------
* During the reporting 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) Annualized.
(b) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(c) Not annualized. See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
See Notes to Financial Statements.
<TABLE>
<CAPTION>
U.S. Government Income Fund
---------------------------------------
January 17,
Year Ended 1995 to Year Ended
December 31, December 31, December 31,
1995 1995 (a) 1994 (e)
------------ ------------ ------------
Investor A Investor B
------------ ------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 8.92 $10.00 $ 9.91
------- ------ -------
Investment Activities
Net investment income.. 0.54 0.43 0.54
Net realized and
unrealized gains
(losses) from
investments........... 0.79 0.94 (0.99)
------- ------ -------
Total from Investment
Activities............ 1.33 1.37 (0.45)
------- ------ -------
Distributions
Net investment income.. (0.54) (0.42) (0.54)
In excess of net
investment income..... -- -- --
------- ------ -------
Total Distributions.... (0.54) (0.42) (0.54)
------- ------ -------
Net Asset Value,
End of Period.......... $ 9.71 $10.95 $ 8.92
======= ====== =======
Total Return (excludes
sales/redemption
charge)................ 15.22% 13.96%(d) (4.64)%
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $36,538 $1,263 $32,721
Ratio of expenses to
average net assets..... 1.09% 1.90%(b) 0.86%
Ratio of net investment
income to average net
assets................. 5.74% 4.80%(b) 5.78%
Ratio of expenses to
average net assets*.... 1.18% 1.90%(b) 1.14%
Ratio of net investment
income to average net
assets*................ 5.65% 4.80%(b) 5.49%
Portfolio Turnover (c).. 75% 75% 83%
</TABLE>
- -------
* During the reporting 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) Annualized.
(c) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(d) 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.
(e) Audited by other auditors.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Riverfront Funds
See Notes to Financial Statements.
<TABLE>
<CAPTION>
U.S. Government Securities Money Market Fund
--------------------------------------------------------------
Six Months
Ended Years Ended December 31,
June 30, ------------------------------------------------
1999 1998 1997 1996 1995 1994 (c)
---------- -------- -------- -------- -------- --------
<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.. 0.021 0.048 0.049 0.046 0.050 0.040
-------- -------- -------- -------- -------- --------
Distributions
Net investment income.. (0.021) (0.048) (0.049) (0.046) (0.050) (0.040)
-------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 2.13%(a) 4.93% 5.02% 4.89% 5.52% 3.78%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $164,192 $188,847 $142,569 $181,017 $157,495 $149,374
Ratio of expenses to
average net assets...... 0.59%(b) 0.66% 0.64% 0.59% 0.58% 0.51%
Ratio of net investment
income to average net
assets.................. 4.28%(b) 4.82% 4.90% 4.78% 5.34% 3.70%
Ratio of expenses to
average net assets*..... 0.74%(b) 0.81% 0.79% 0.84% 0.83% 0.80%
Ratio of net investment
income to average net
assets*................. 4.67%(b) 4.67% 4.75% 4.53% 5.09% 3.41%
</TABLE>
- -------
* During the reporting 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) Not annualized.
(b) Annualized.
(c) Audited by other auditors.
The Riverfront Funds, Inc.
INVESTMENT ADVISER
Provident Investment Advisors, Inc.
One East Fourth Street
Cincinnati, Ohio 45202
DISTRIBUTOR
Edgewood Services, Inc.
5800 Corporate Drive
Pittsburgh, PA 15237-5829
FOR ADDITIONAL INFORMATION CALL:
The Provident Bank
Mutual Fund Services
1-800-424-2295
This report must be preceded or accompanied by the Funds' prospectus which
contains facts concerning its objectives and policies, management fees, expenses
and other information.
Cusip 768709602 Cusip 768709701 Cusip 768709404 Cusip 768709800 Cusip 768709842
Cusip 768709834 Cusip 768709107 Cusip 768709867 Cusip 768709859 Cusip 768709305
Cusip 768709875 G02569-01 (8/99)
