COMBINED
ANNUAL REPORT
TO SHAREHOLDERS
September 30, 1994
. The U.S. Government Securities Fund
. The Stock Fund
. The Virginia Municipal Bond Fund
. The Maryland Municipal Bond Fund
. The Treasury Money Market Fund
. The Money Market Fund
. The Tax-Free Money Market Fund
Funds Managed by
[LOGO SIGNET]
ASSET MANAGEMENT
A Division of Signet Trust Company
The Investment Adviser to The Medalist Funds is Signet Asset Management, a
division of Signet Trust Company, Signet Trust Company is a wholly owned
subsidiary of Signet Banking Corporation. The Medalist Funds are administered by
subsidiaries of Federated Investors, independent of Signet.
Investment products offered through Signet Financial Services, Inc. are not
deposits, obligations of, or guaranteed by Signet Bank, and are not insured by
FDIC or any Federal agency. In addition, they involve risk, including possible
loss of principal invested. Member NASD.
An affiliate of Signet Banking Corporation, is the Investment Advisor for the
Medalist Funds. Federated Securities Corp. is the distributor of the Funds.
Federated Securities Corp., Distributor, is independent of Signet Trust
[LOGO OF MEDALIST FUNDS]
MESSAGE TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Dear Shareholder:
I am Garry Allen, newly appointed Chief Investment Officer and Senior Vice
President of Signet Asset Management. I am pleased to present The Medalist Funds
Investment Shares and Trust Shares, formerly, Signet Select Funds, Annual
Report, which covers the twelve month period from October 1, 1993 through
September 30, 1994.
I encourage you to take a few minutes to review this information--from the
overall fund picture given in the Investment Review to the specific fund
performance numbers found in the Financial Statements section.
In spite of rising interest rates, The Medalist Funds performed competitively
over the period. For example:
The U.S. Government Securities Fund formerly, U.S. Government Income Fund,
provided investors with dividends of $0.61 per Investment Share ($0.63 per
Trust Share) and capital gains of $0.13 per Investment Share ($0.13 per Trust
Share), while net assets decreased from $231.5 million to $219.5 million.
The Stock Fund formerly, Value Equity Fund, paid dividends of $0.17 per
Investment Share ($0.19 per Trust Share) and capital gains of $0.20 per
Investment Share ($0.20 per Trust Share), while net assets increased from $84.5
million to $97.1 million.
The Virginia Municipal Bond Fund formerly, Virginia Municipal Bond Fund, paid
dividends of $0.45 per Investment Share ($0.48 per Trust Share) and capital
gains of $0.08 per Investment Share ($0.08 per Trust Share), while net assets
increased from $104.7 million to $108.9 million.
The Maryland Municipal Bond Fund formerly, Maryland Municipal Bond Fund, paid
dividends of $0.45 per Investment Share ($0.48 per Trust Share) and capital
gains of $0.10 per Investment Share ($0.10 per Trust Share), while net assets
stood at $46.0 million.
The Treasury Money Market Fund formerly, Treasury Money Market Fund, paid
dividends of $0.03 per Investment Share, ($0.03 per Trust Share), and
experienced a major increase in net assets from $173.3 million to $326.2
million.
The Money Market Fund formerly, Money Market Fund, paid dividends of $0.03 per
Investment Share ($0.03 per Trust Share), and the Fund's net assets increased
from $144.3 million to $147.7 million.
The Tax-Free Money Market Fund, a new addition to The Medalist Funds Family,
paid tax-exempt dividends of $0.01 for the period July 27, 1994, date of
initial public investment, through September 30, 1994.
Thank you for your confidence in The Medalist Funds. We will continue to keep
you fully informed, and we look forward to serving you as you pursue your
financial goals.
Sincerely,
Garry M. Allen
Chief Investment Officer
Signet Asset Management,
Investment Adviser to
The Medalist Funds
November 15, 1994
THE U.S. GOVERNMENT SECURITIES FUND
(FORMERLY, U.S. GOVERNMENT INCOME FUND)
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
---------------------------------------------------------------------------
The third quarter of 1994 closed out with what many believe may have
been the end to the recent decline in bond prices. The 30-year bond reached
an intraday peak of 8.00% and has risen by approximately 15 basis points in
yield since then. We believe this is merely a correction in what will
continue to be a bear market for bonds.
Several months ago an 8.00% long bond yield seemed to be an adequate
downside target for the current interest rate cycle. The Federal Reserve
Board (the "Fed") appeared to be in front of the "inflation curve" through
a series of rate increases begun in the first quarter. The problem now is
that we have achieved the 8.00% long bond yield target and the economy
continues to show strength. As a result, the Fed's resolve to fight
inflation is being questioned and bond prices continue to move lower. We
believe the Fed will continue to increase short term interest rates over
the next several months and this will eventually provide support to long
term bond prices.
Throughout 1994, we have maintained a defensive strategy in The U.S.
Government Securities Fund, designed to protect asset value as bond prices
decline. We will continue this posture for the next several months given
our view on Fed monetary policy.
THE U.S. GOVERNMENT SECURITIES FUND--Investment Shares
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN THE U.S. GOVERNMENT SECURITIES FUND--INVESTMENT
SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
U.S. Government Securities Fund (the "Fund") from October 16, 1990 (start of
performance) to September 30, 1994 compared to the Lehman Brothers Intermediate
Government Bond Index ("LBIGB").+
[GRAPH INSERTS HERE]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED SEPTEMBER 30, 1994
<TABLE>
<S> <C>
1 Year...................................................................(5.32%)
Start of Performance (10/16/90).......................................... 6.77%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Reflects operations of the Fund from the start of performance 10/16/90 through
9/30/94, on a cumulative basis.
**Represents a hypothetical investment of $10,000 in the Fund. The ending value
of the Fund reflects a contingent deferred sales charge of 2.00% on any
redemption less than 5 years from the purchase date. The Fund's performance
assumes the reinvestment of all dividends and distributions.
+The LBIGB IS not adjusted to reflect sales loads, expenses, or other fees that
the SEC requires to be reflected in the Fund's performance. The LBIGB has been
adjusted to reflect reinvestment of dividends on securities in the index. This
index is unmanaged.
THE U.S. GOVERNMENT SECURITIES FUND--Trust Shares
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN THE U.S. GOVERNMENT SECURITIES FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
U.S. Government Securities Fund (the "Fund") from OCTOBER 16, 1990 (start of
performance) to September 30, 1994 compared to the Lehman Brothers Intermediate
Government Bond Index ("LBIGB").+
[GRAPH INSERTS HERE]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED SEPTEMBER 30, 1994
<TABLE>
<S> <C>
1 Year...................................................................(3.12%)
Start of Performance (10/16/90).......................................... 7.43%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Reflects operations of the Fund from the start of performance 10/16/90 through
9/30/94, on a cumulative basis.
**Represents a hypothetical investment of $10,000 in the Fund. The Fund's
performance assumes the reinvestment of all dividends and distributions.
+The LBIGB is not adjusted to reflect sales loads, expenses, or other fees that
the SEC requires to be reflected in the Fund's performance. The LBIGB has been
adjusted to reflect reinvestment of dividends on securities in the INDEX. This
index is unmanaged.
THE U.S. GOVERNMENT SECURITIES FUND
(FORMERLY, U.S. GOVERNMENT INCOME FUND)
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- -------------- --------------------------------------------------------------------------------- --------------
SHORT-TERM INVESTMENTS--10.9%
- -------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE DISCOUNT NOTE
---------------------------------------------------------------------------------
$ 24,000,000 4.87%, 11/1/94 (at amortized cost) $ 23,901,213
--------------------------------------------------------------------------------- --------------
LONG-TERM INVESTMENTS--86.7%
- -------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES--78.3%
---------------------------------------------------------------------------------
168,775,000 5.125%-8.875%, 10/15/95-5/15/2002 172,022,897
--------------------------------------------------------------------------------- --------------
GOVERNMENT OBLIGATIONS--8.4%
---------------------------------------------------------------------------------
5,000,000 Federal Home Loan Bank, 6.125%, 8/5/1996 4,919,650
---------------------------------------------------------------------------------
5,000,000 Federal Home Loan Bank, 8.23%, 8/9/2001 5,057,250
---------------------------------------------------------------------------------
126,017 Federal Home Loan Mortgage Corp., PC, 6.359%, 8/1/2019 127,542
---------------------------------------------------------------------------------
3,800,000 Federal Home Loan Mortgage Corp., PC, REMIC, 7.80%, 5/15/2012 3,762,912
---------------------------------------------------------------------------------
88,386 Federal Home Loan Mortgage Corp., PC, 7.829%, 12/1/2020 90,052
---------------------------------------------------------------------------------
276,846 Federal Home Loan Mortgage Corp., PC, REMIC, 8.50%, 9/15/2017 276,784
---------------------------------------------------------------------------------
821,229 Federal National Mortgage Association, REMIC, 8.00%, 7/25/2018 822,526
---------------------------------------------------------------------------------
1,500,000 Federal National Mortgage Association, 7.85%, 9/10/98 1,524,555
---------------------------------------------------------------------------------
855,836 Federal National Mortgage Association, 8.50%, 12/1/2001 870,814
---------------------------------------------------------------------------------
119,172 Federal National Mortgage Association, ARMs, 8.305%, 6/1/2019 122,079
---------------------------------------------------------------------------------
255,667 Government National Mortgage Association, 8.00%, 3/15/2017 248,956
---------------------------------------------------------------------------------
587,199 Government National Mortgage Association, 9.00%, 9/15/2021 602,243
--------------------------------------------------------------------------------- --------------
Total Government Obligations 18,425,363
--------------------------------------------------------------------------------- --------------
TOTAL LONG-TERM INVESTMENTS (IDENTIFIED COST, $199,512,766) 190,448,260
--------------------------------------------------------------------------------- --------------
*REPURCHASE AGREEMENT--1.1%
- -------------------------------------------------------------------------------------------------
2,482,162 Prudential Securities Inc., 4.90%, dated 9/30/94, due 10/3/94
(at amortized cost) 2,482,162
--------------------------------------------------------------------------------- --------------
TOTAL INVESTMENTS (IDENTIFIED COST, $225,896,141) $ 216,831,635+
--------------------------------------------------------------------------------- --------------
</TABLE>
* The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ The cost of investments for federal tax purposes amounts to $225,896,141. The
net unrealized depreciation on a federal tax basis amounts to $9,064,506,
which is comprised of $46,817 appreciation and $9,111,323 depreciation at
September 30, 1994.
The following abbreviations are used in this portfolio:
ARMs--Adjustable Rate Mortgages
PC--Participation Certificates
REMIC--Real Estate Mortgage Investment Conduit
Note: The categories of investments are shown as a percentage of net assets
($219,542,214) at September 30, 1994.
(See Notes which are an integral part of the Financial Statements)
THE STOCK FUND
(FORMERLY, VALUE EQUITY FUND)
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
---------------------------------------------------------------------------
For the year ended September 30, 1994, The Stock Fund (the "Fund") has
a return of
-1.72% for Investment Shares (-3.71% taking into account the contingent
deferred sales charge) and -1.50% for Trust Shares*, which compares to the
Standard and Poor's 500 Index (S&P 500)** at 3.66%.
Signet Asset Management has developed an improved equity discipline
that incorporates style strategies along with refinements in the analytical
process for stock selections.
This diversified portfolio is sector neutral, i.e. it places no
emphasis or de-emphasis on particular market sectors and holds large and
small capitalization companies. The portfolio is designed for investors
seeking predominately capital growth and income representative of the S&P
500 dividend yield.
Through implementing our improved discipline, our research indicated
that we should begin to move half of the 40% style oriented holdings from
value into growth stocks. Subsequently, the model signaled that a full
transition should be made during the quarter. This caused the Fund to
eliminate the remaining value companies and complete the style emphasis on
growth firms. These companies may outperform the market due to the age of
the economic cycle, their favorable relative earnings comparisons and the
long outperformance of value companies. In general, these issues have
higher price to book multiples and lower market capitalization than the
typical company found in the S&P 500.
The Fund also repositioned the remaining 60% of its portfolio among
large capitalization stocks that were determined to be undervalued using a
new proprietary multifactor model. These selections do not represent a
conscious style tilt and are balanced between both growth and value. This
segment of the portfolio provides style diversification principally across
S&P 500 securities. Undervalued securities are identified by a composite
approach utilizing relative valuation and earnings momentum and revision
variables aimed at identifying relative cheapness in individual securities.
*Performance quoted represents past performance. Investment return and
principle value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
**The Standard & Poor's 500 Index is a composite of 500 stocks. The index is
unmanaged.
THE STOCK FUND--Investment Shares
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN THE STOCK FUND--INVESTMENT SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Stock Fund (the "Fund") from October 16, 1990 (start of performance) to
September 30, 1994 compared to the Standard & Poor's 500 Index ("S&P 500").+
[GRAPH INSERTS HERE]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED SEPTEMBER 30, 1994
<TABLE>
<S> <C>
1 Year...................................................................(3.71%)
Start of Performance (10/16/90).......................................... 7.66%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Reflects operations of the Fund from the start of performance 10/16/90 through
9/30/94, on a cumulative basis.
**Represents a hypothetical investment of $10,000 in the Fund. The ending value
of the Fund reflects a contingent deferred sales charge of 2.00% on any
redemption less than 5 years from the purchase date. The Fund's performance
assumes the reinvestment of all dividends and distributions.
+The S&P 500 is not adjusted to reflect sales loads, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance. The S&P 500
has been adjusted to reflect reinvestment of dividends on securities in the
index. This index is unmanaged.
THE STOCK FUND--Trust Shares
-------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN THE STOCK FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Stock Fund (the "Fund") from OCTOBER 16, 1990 (start of performance) to
September 30, 1994 compared to the Standard & Poor's 500 Index ("S&P 500").+
[GRAPH INSERTS HERE]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED SEPTEMBER 30, 1994
<TABLE>
<S> <C>
1 Year...................................................................(1.50%)
Start of Performance (10/16/90).......................................... 8.23%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY
BE WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF
OR GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Reflects operations of the Fund from the start of performance 10/16/90
through 9/30/94, on a cumulative basis.
**Represents a hypothetical investment of $10,000 in the Fund. The Fund's
performance assumes the reinvestment of all dividends and distributions.
+The S&P 500 IS not adjusted to reflect sales loads, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance. The S&P 500
has been adjusted to reflect reinvestment of dividends on securities in the
INDEX. This index is unmanaged.
THE STOCK FUND
(FORMERLY, VALUE EQUITY FUND)
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
COMMON STOCKS--97.2%
- ---------------------------------------------------------------------------------------------------
BASIC MATERIALS--2.7%
-------------------------------------------------------------------------------------
25,532 Eastman Chemical Co. $ 1,388,302
-------------------------------------------------------------------------------------
31,374 PPG Industries, Inc. 1,243,195
------------------------------------------------------------------------------------- -------------
Total 2,631,497
------------------------------------------------------------------------------------- -------------
CAPITAL GOODS/CONSTRUCTION--7.7%
-------------------------------------------------------------------------------------
7,200 Alliant Techsystems, Inc. 224,100
-------------------------------------------------------------------------------------
25,195 Armstrong World Industries, Inc. 1,092,833
-------------------------------------------------------------------------------------
20,119 Clark Equipment Co. 1,393,241
-------------------------------------------------------------------------------------
33,300 Dallas Semiconductor Corp. 516,150
-------------------------------------------------------------------------------------
17,640 Deere & Co. 1,210,545
-------------------------------------------------------------------------------------
25,200 Giddings & Lewis, Inc. 448,875
-------------------------------------------------------------------------------------
9,400 Idex Corp. 380,700
-------------------------------------------------------------------------------------
5,100 Ionics, Inc. 248,625
-------------------------------------------------------------------------------------
18,300 Jacobs Engineer Group, Inc. 446,062
-------------------------------------------------------------------------------------
13,600 Juno Lighting, Inc. 248,200
-------------------------------------------------------------------------------------
15,100 Oakwood Homes Corp. 379,388
-------------------------------------------------------------------------------------
10,900 Roper Industries 260,919
-------------------------------------------------------------------------------------
27,000 Trimas Corp. 614,250
------------------------------------------------------------------------------------- -------------
Total 7,463,888
------------------------------------------------------------------------------------- -------------
CONSUMER CYCLICAL--22.9%
-------------------------------------------------------------------------------------
27,700 Acclaim Entertainment, Inc. 470,900
-------------------------------------------------------------------------------------
21,600 Arctco, Inc. 410,400
-------------------------------------------------------------------------------------
26,800 Bombay, Inc. 355,100
-------------------------------------------------------------------------------------
30,300 Burlington Coat Factory Warehouse 409,050
-------------------------------------------------------------------------------------
18,300 Caesars World, Inc. 793,763
-------------------------------------------------------------------------------------
12,200 Caldor Corp. 376,675
-------------------------------------------------------------------------------------
16,864 Capital Cities ABC, Inc. 1,382,848
-------------------------------------------------------------------------------------
20,700 Chris Craft Industries, Inc. 830,588
-------------------------------------------------------------------------------------
25,189 Chrysler Corp. 1,130,356
-------------------------------------------------------------------------------------
34,300 Consolidated Stores Corp. 561,663
-------------------------------------------------------------------------------------
41,827 Dana Corp. 1,171,156
-------------------------------------------------------------------------------------
14,787 Dayton Hudson Corp. 1,131,206
-------------------------------------------------------------------------------------
22,745 Eaton Corp. 1,080,388
-------------------------------------------------------------------------------------
40,851 Ford Motor Co. 1,133,615
-------------------------------------------------------------------------------------
19,000 Jones Apparel Group, Inc. 465,500
-------------------------------------------------------------------------------------
34,424 Lowes Cos., Inc. 1,329,627
-------------------------------------------------------------------------------------
21,600 MacFrugals Bargains Close Outs 429,300
-------------------------------------------------------------------------------------
</TABLE>
THE STOCK FUND
(FORMERLY, VALUE EQUITY FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
-------------------------------------------------------------------------------------
46,230 Mattel, Inc. $ 1,253,989
-------------------------------------------------------------------------------------
63,466 Maytag Corp. 1,023,389
-------------------------------------------------------------------------------------
26,633 Meredith Corp. 1,238,435
-------------------------------------------------------------------------------------
19,500 Meyer (Fred), Inc. 641,062
-------------------------------------------------------------------------------------
15,300 Michaels Stores, Inc. 633,993
-------------------------------------------------------------------------------------
9,500 Nautica Enterprises, Inc. 293,906
-------------------------------------------------------------------------------------
27,700 Nordstrom, Inc. 1,108,000
-------------------------------------------------------------------------------------
19,300 Phillips Van Heusen Corp. 398,062
-------------------------------------------------------------------------------------
18,100 Ross Stores, Inc. 264,712
-------------------------------------------------------------------------------------
39,300 Ryans Family Steak Houses, Inc. 233,343
-------------------------------------------------------------------------------------
22,000 Superior Industries International, Inc. 635,250
-------------------------------------------------------------------------------------
7,300 United Television, Inc. 392,375
-------------------------------------------------------------------------------------
23,600 Value City Department Stores, Inc. 312,700
-------------------------------------------------------------------------------------
17,700 WMS Industries, Inc. 311,963
------------------------------------------------------------------------------------- -------------
Total 22,203,314
------------------------------------------------------------------------------------- -------------
CONSUMER STAPLES--8.3%
-------------------------------------------------------------------------------------
16,500 Arrow International, Inc. 400,125
-------------------------------------------------------------------------------------
23,600 FHP International Corp. 690,300
-------------------------------------------------------------------------------------
10,500 Genesis Health Ventures, Inc. 297,937
-------------------------------------------------------------------------------------
25,900 Healthcare Compare Corp. 746,244
-------------------------------------------------------------------------------------
23,600 Health Care & Retirement Corp. 669,650
-------------------------------------------------------------------------------------
22,900 Healthsource, Inc. 812,950
-------------------------------------------------------------------------------------
21,900 Herbalife International, Inc. 377,775
-------------------------------------------------------------------------------------
12,800 Integrated Health Services, Inc. 454,400
-------------------------------------------------------------------------------------
7,600 Invacare Corp. 224,200
-------------------------------------------------------------------------------------
51,799 Kroger Co. 1,379,148
-------------------------------------------------------------------------------------
20,800 Nellcor, Inc. 617,500
-------------------------------------------------------------------------------------
11,400 Quantum Health Resources, Inc. 480,938
-------------------------------------------------------------------------------------
13,200 Sunrise Medical, Inc. 343,200
-------------------------------------------------------------------------------------
12,200 Vencor, Inc. 555,100
------------------------------------------------------------------------------------- -------------
Total 8,049,467
------------------------------------------------------------------------------------- -------------
ENERGY--3.5%
-------------------------------------------------------------------------------------
11,700 Cordis Corp. 617,175
-------------------------------------------------------------------------------------
17,700 Magma Power Co. 613,969
-------------------------------------------------------------------------------------
53,000 Nabors Industries, Inc. 324,625
-------------------------------------------------------------------------------------
43,155 Pittston Services Group 1,229,918
-------------------------------------------------------------------------------------
26,500 Seagull Energy Corp. 619,437
------------------------------------------------------------------------------------- -------------
Total 3,405,124
------------------------------------------------------------------------------------- -------------
</TABLE>
THE STOCK FUND
(FORMERLY, VALUE EQUITY FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------------------
FINANCE AND BANKING--17.4%
-------------------------------------------------------------------------------------
25,759 BankAmerica Corp. $ 1,136,616
-------------------------------------------------------------------------------------
29,972 Citicorp 1,273,810
-------------------------------------------------------------------------------------
31,930 Dean Witter Discover & Co. 1,201,366
-------------------------------------------------------------------------------------
19,852 Federal Home Loan Mortgage Corp. 1,059,601
-------------------------------------------------------------------------------------
25,844 First Fidelity Bancorp 1,085,448
-------------------------------------------------------------------------------------
15,487 First Interstate Bancorp 1,256,382
-------------------------------------------------------------------------------------
31,643 Fleet Financial Group, Inc. 1,190,568
-------------------------------------------------------------------------------------
12,000 Glenayre Technologies, Inc. 693,000
-------------------------------------------------------------------------------------
49,896 MBNA Corp. 1,153,845
-------------------------------------------------------------------------------------
23,270 Nationsbank Corp. 1,140,230
-------------------------------------------------------------------------------------
45,135 Norwest Corp. 1,117,091
-------------------------------------------------------------------------------------
9,100 Pioneer Group, Inc. 427,700
-------------------------------------------------------------------------------------
21,400 T. Rowe Price & Assoc., Inc. 716,900
-------------------------------------------------------------------------------------
24,847 Suntrust Banks, Inc. 1,211,291
-------------------------------------------------------------------------------------
22,951 Transamerica Corp. 1,153,288
-------------------------------------------------------------------------------------
7,942 Wells Fargo & Co. 1,152,583
------------------------------------------------------------------------------------- -------------
Total 16,969,719
------------------------------------------------------------------------------------- -------------
MISCELLANEOUS--2.5%
-------------------------------------------------------------------------------------
9,300 Adia Services, Inc. 332,475
-------------------------------------------------------------------------------------
7,900 Gencare Health System, Inc. 363,894
-------------------------------------------------------------------------------------
9,400 Homedco Group, Inc. 329,000
-------------------------------------------------------------------------------------
16,300 Horizon Healthcare Corp. 446,212
-------------------------------------------------------------------------------------
9,200 Sierra Health Services, Inc. 236,900
-------------------------------------------------------------------------------------
23,800 Total Systems Services, Inc. 758,625
------------------------------------------------------------------------------------- -------------
Total 2,467,106
------------------------------------------------------------------------------------- -------------
TECHNOLOGY--26.1%
-------------------------------------------------------------------------------------
38,600 Adaptec, Inc. 730,988
-------------------------------------------------------------------------------------
48,686 Advanced Micro Devices, Inc. 1,448,408
-------------------------------------------------------------------------------------
19,100 Allen Group, Inc. 393,938
-------------------------------------------------------------------------------------
12,100 American Management System, Inc. 284,350
-------------------------------------------------------------------------------------
50,400 Andrew Corp. 2,526,300
-------------------------------------------------------------------------------------
7,500 Aspect Telecommunications Corp. 285,000
-------------------------------------------------------------------------------------
28,300 Cheyenne Software, Inc. 261,775
-------------------------------------------------------------------------------------
12,700 Cognex Corp. 233,362
-------------------------------------------------------------------------------------
37,269 Compaq Computer Corp. 1,215,901
-------------------------------------------------------------------------------------
29,753 Computer Associates International, Inc. 1,324,008
-------------------------------------------------------------------------------------
28,253 Computer Sciences Corp. 1,229,005
-------------------------------------------------------------------------------------
11,850 Concord EFS, Inc. 225,150
-------------------------------------------------------------------------------------
</TABLE>
THE STOCK FUND
(FORMERLY, VALUE EQUITY FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
-------------------------------------------------------------------------------------
37,400 Conner Peripherals, Inc. $ 406,725
-------------------------------------------------------------------------------------
27,600 Dell Computer Corp. 1,033,275
-------------------------------------------------------------------------------------
35,100 Electronic Arts 649,350
-------------------------------------------------------------------------------------
28,700 Fiserv, Inc. 617,050
-------------------------------------------------------------------------------------
11,100 Harman International Industries, Inc. 387,112
-------------------------------------------------------------------------------------
16,400 Komag, Inc. 434,600
-------------------------------------------------------------------------------------
13,600 Lattice Semiconductor Corp. 251,600
-------------------------------------------------------------------------------------
12,700 Marshall Industries 319,088
-------------------------------------------------------------------------------------
27,481 Martin Marietta Corp. 1,222,905
-------------------------------------------------------------------------------------
10,600 Maxim Integrated Products, Inc. 649,250
-------------------------------------------------------------------------------------
10,106 McDonnell Douglas Corp. 1,167,243
-------------------------------------------------------------------------------------
22,520 Millipore Corp. 1,210,450
-------------------------------------------------------------------------------------
68,899 National Semiconductor Corp. 1,076,547
-------------------------------------------------------------------------------------
12,700 Oak Industries, Inc. 312,738
-------------------------------------------------------------------------------------
31,460 Oracle System Corp. 1,352,780
-------------------------------------------------------------------------------------
22,000 Paychex, Inc. 830,500
-------------------------------------------------------------------------------------
14,800 Sterling Software, Inc. 458,800
-------------------------------------------------------------------------------------
13,900 Sun Guard Data Systems 493,450
-------------------------------------------------------------------------------------
14,979 Texas Instruments, Inc. 1,024,189
-------------------------------------------------------------------------------------
18,400 Vishay Intertechnology, Inc. 828,000
-------------------------------------------------------------------------------------
13,400 Zilog, Inc. 452,250
------------------------------------------------------------------------------------- -------------
Total 25,336,087
------------------------------------------------------------------------------------- -------------
TRANSPORTATION--2.1%
-------------------------------------------------------------------------------------
10,100 Air Express International Corp. 279,013
-------------------------------------------------------------------------------------
15,800 Comair Holdings, Inc. 359,450
-------------------------------------------------------------------------------------
8,000 Fritz Companies, Inc. 284,000
-------------------------------------------------------------------------------------
9,500 M S Carriers, Inc. 211,375
-------------------------------------------------------------------------------------
9,000 Swift Transportation, Inc. 386,438
-------------------------------------------------------------------------------------
18,600 Werner Enterprises, Inc. 474,300
------------------------------------------------------------------------------------- -------------
Total 1,994,576
------------------------------------------------------------------------------------- -------------
UTILITIES--4.0%
-------------------------------------------------------------------------------------
19,358 BellSouth Corp. 1,079,208
-------------------------------------------------------------------------------------
43,217 Coastal Corp. 1,204,674
-------------------------------------------------------------------------------------
10,000 L G & E Energy Corp. 378,750
-------------------------------------------------------------------------------------
17,371 Nucor Corp. 1,209,456
------------------------------------------------------------------------------------- -------------
Total 3,872,088
------------------------------------------------------------------------------------- -------------
TOTAL COMMON STOCKS (IDENTIFIED COST, $93,381,694) 94,392,866
------------------------------------------------------------------------------------- -------------
</TABLE>
THE STOCK FUND
(FORMERLY, VALUE EQUITY FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
*REPURCHASE AGREEMENT--2.9%
- ---------------------------------------------------------------------------------------------------
$ 2,807,468 Prudential Securities, Inc., 4.90%, dated 9/30/94, due 10/3/94
(at amortized cost) $ 2,807,468
------------------------------------------------------------------------------------- -------------
TOTAL INVESTMENTS (IDENTIFIED COST, $96,189,162) $ 97,200,334+
------------------------------------------------------------------------------------- -------------
</TABLE>
The cost of investments for federal tax purposes amounts to $96,270,153. The
net unrealized appreciation of investments on a federal tax basis amounts to
$930,181, which is comprised of $3,867,681 appreciation and $2,937,500
depreciation at September 30, 1994.
* The repurchase agreement is fully collateralized by U.S. government
obligations based on market prices at the date of the portfolio.
Note: The categories of investments are shown as a percentage of net assets
($97,112,993) at September 30, 1994.
(See Notes which are an integral part of the Financial Statements)
THE VIRGINIA MUNICIPAL BOND FUND
(FORMERLY, VIRGINIA MUNICIPAL BOND FUND)
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
---------------------------------------------------------------------------
With much uncertainty surrounding the direction of the bond market and
the Federal Reserve Board's (the "Fed") initiative, our investment strategy
remains defensive. Until Gross Domestic Product growth falls below 3%, we
will remain cautious on the market.
The probability of the Fed forcing short rates higher continues to be
a topic of much discussion. The series of declining unemployment figures
has signaled an expanding economy nearing full capacity. The weakness in
the dollar is of major concern as it heightens the potential for
accelerated inflation. From this, another upward push in interest rates
could result, but should be interpreted as another in a series of moves
from an accommodative monetary policy to a neutral one.
Assets remained stable throughout the quarter for The Virginia
Municipal Bond Fund (the "Fund"). The Fund's primary emphasis is to
concentrate in higher coupon, premium bonds as opposed to lower coupon,
discounts. The Fund continues to gravitate toward a more equal weighting
between General Obligations and Revenue bonds, concentrating in the 7-15
year range. Rating spread differentials have widened only slightly, and
stressing higher quality credits remains appropriate. The target average
weighted maturity for the Fund is approximately 10 years.
THE VIRGINIA MUNICIPAL BOND FUND--Investment Shares
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN THE VIRGINIA MUNICIPAL BOND FUND--INVESTMENT
SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Virginia Municipal Bond Fund (the "Fund") from October 24, 1990 (start of
performance) to September 30, 1994 compared to the Lehman Brothers 10 Year
Municipal Bond Index ("LBMBI").+
[GRAPH INSERTS HERE]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED SEPTEMBER 30, 1994
<TABLE>
<S> <C>
1 Year...................................................................(6.21%)
Start of Performance (10/24/90).......................................... 5.71%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Reflects operations of the Fund from the start of performance 10/24/90 through
9/30/94, on a cumulative basis.
**Represents a hypothetical investment of $10,000 in the Fund. The ending value
of the Fund reflects a contingent deferred sales charge of 2.00% on any
redemption less than 5 years from the purchase date. The Fund's performance
assumes the reinvestment of all dividends and distributions.
+The LBMBI IS not adjusted to reflect sales loads, expenses, or other fees that
the SEC requires to be reflected in the Fund's performance. The LBMBI has been
adjusted to reflect reinvestment of dividends on securities in the index. This
index is unmanaged.
THE VIRGINIA MUNICIPAL BOND FUND--Trust Shares
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN THE VIRGINIA MUNICIPAL BOND FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Virginia Municipal Bond Fund (the "Fund") from OCTOBER 24, 1990 (start of
performance) to September 30, 1994 compared to the Lehman Brothers 10 Year
Municipal Bond Index ("LBMBI").+
[GRAPH INSERTS HERE]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED SEPTEMBER 30, 1994
<TABLE>
<S> <C>
1 Year...................................................................(4.01%)
Start of Performance (10/24/90).......................................... 6.34%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Reflects operations of the Fund from the start of performance 10/24/90 through
9/30/94, on a cumulative basis.
**Represents a hypothetical investment of $10,000 in the Fund. The Fund's
performance assumes the reinvestment of all dividends and distributions.
+The LBMBI IS not adjusted to reflect sales loads, expenses, or other fees that
the SEC requires to be reflected in the Fund's performance. The LBMBI has been
adjusted to reflect reinvestment of dividends on securities in the INDEX. This
index is unmanaged.
THE VIRGINIA MUNICIPAL BOND FUND
(FORMERLY, VIRGINIA MUNICIPAL BOND FUND)
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------ ---------------------------------------------------------------------- ---------- --------------
LONG-TERM MUNICIPAL SECURITIES--97.4%
- ------------------------------------------------------------------------------------
$ 1,000,000 Albemarle County, VA, IDA, 5.75%, Refunding Revenue Bonds,
(Martha-Jefferson Hospital)/(Callable 10/1/2003 @ 102)/(Original Issue
Yield: 5.85%), 10/1/2008 A $ 946,650
----------------------------------------------------------------------
490,000 Alexandria, VA, 5.10%, GO UT Refunding Bonds, (Original Issue Yield:
5.15%), 2/1/2008 Aaa 449,869
----------------------------------------------------------------------
250,000 Amherst, VA, IDA, 6.55%, Refunding Revenue Bonds, (Sweet Briar College
Educational Facilities)/(Callable 9/1/99 @ 102)/(Original Issue Yield:
6.549%), 9/1/2005 A- 261,108
----------------------------------------------------------------------
500,000 Arlington County, VA, Public Improvements, 5.125%, GO UT Bonds,
(Callable 7/15/2003 @ 102), 7/15/2006 AAA 473,050
----------------------------------------------------------------------
500,000 Arlington County, VA, Public Improvements, 5.25%, GO UT Bonds,
(Callable 7/15/2003 @ 102), 7/15/2007 AAA 472,765
----------------------------------------------------------------------
250,000 Arlington County, VA, Public Improvements, 6.00%, GO UT Bonds,
(Callable 12/1/2001 @ 102), 12/1/2005 AAA 258,520
----------------------------------------------------------------------
900,000 Arlington County, VA, IDA, 6.60%, Refunding Revenue Bonds, (Arlington
Hospital)/(Series A)/(Callable 9/1/2001
@ 102), 9/1/2004 A-1 971,352
----------------------------------------------------------------------
350,000 Augusta County, VA, 6.10%, Refunding Revenue Bonds, (Augusta Hospital
Corp. Project)/(AMBAC Insured)/
(Original Issue Yield: 6.20%), 9/1/2000 AAA 364,949
----------------------------------------------------------------------
200,000 Bath County, VA, School Improvements 6.45%, GO UT Bonds, (Callable
12/15/2002 @ 102), 12/15/2007 A 206,452
----------------------------------------------------------------------
785,000 Charlottesville, VA, Public Improvements, 5.20%, GO UT Refunding
Bonds, (Callable 7/15/2003 @ 101-1/4)/(State Aid Withholding),
7/15/2008 AAA 734,258
----------------------------------------------------------------------
1,000,000 Chesapeake, VA, 5.25%, GO UT Refunding Bonds,
(Original Issue Yield: 5.35%), 12/1/2006 AA 958,260
----------------------------------------------------------------------
1,360,000 Chesapeake, VA, Public Improvements, 5.70%, GO UT Bonds, (Callable
8/1/2002 @ 102), 8/1/2007 AA 1,352,534
----------------------------------------------------------------------
300,000 Chesapeake, VA, Water & Sewer System Authority, 4.95%, Refunding
Revenue Bonds, (Callable 5/1/2004 @ 102),
5/1/2006 A+ 271,851
----------------------------------------------------------------------
225,000 Chesapeake, VA, Water & Sewer System Authority, 5.95%, Refunding
Revenue Bonds, 7/1/2000 A+ 232,711
----------------------------------------------------------------------
320,000 Chesapeake, VA, Water & Sewer System Authority, 6.60%, Refunding
Revenue Bonds, (Callable 7/1/2002 @ 102)/
(Original Issue Yield: 6.70%), 7/1/2006 A+ 336,998
----------------------------------------------------------------------
105,000 Chesterfield, VA, IDA, 5.45%, Pollution Control Revenue Bonds, (E I
DuPont deNemours & Co. Project)/(Callable
11/1/94 @ 100), 4/1/2007 AA 101,763
----------------------------------------------------------------------
1,500,000 Chesterfield County, VA, Public Improvements, 5.00%, GO UT Refunding
Bonds, (Callable 3/1/2003 @ 101-1/2), 3/1/ 2006 AA 1,406,685
----------------------------------------------------------------------
250,000 Chesterfield County, VA, Public Improvements, 5.60%, GO UT Bonds,
(Callable 7/15/2002 @ 101-1/2), 7/15/2006 AA+ 249,123
----------------------------------------------------------------------
300,000 Chesterfield County, VA, Public Improvements, 6.60%, GO UT Bonds,
(Series B) (Callable 1/1/2001 @ 102), 1/1/2003 AAA 323,571
----------------------------------------------------------------------
300,000 Chesterfield, VA, Water & Sewer System Authority, 6.10%, Refunding
Revenue Bonds, (Callable 11/1/2002 @ 102),
11/1/2004 AA 314,247
----------------------------------------------------------------------
1,000,000 Covington Allegheny County, VA, IDA, 6.20%, Pollution Control Revenue
Bonds, (Westvaco Corp. Project)/(Callable 4/1/95 @ 100), 4/1/2007 A-1 999,990
----------------------------------------------------------------------
255,000 Culpeper, VA, 5.30%, GO UT Refunding Bonds, (Callable
6/1/2003 @ 102), 6/1/2008 A 238,035
----------------------------------------------------------------------
345,000 Culpeper, VA, Public Improvements, 5.60%, GO UT Refunding Bonds,
(Callable 2/1/2002 @ 102), 2/1/2007 A 334,812
----------------------------------------------------------------------
270,000 Culpeper, VA, Water Utility Improvements, 5.30%, GO UT Bonds,
(Callable 4/1/2003 @ 102)/(MBIA Insured), 4/1/2007 AAA 255,812
----------------------------------------------------------------------
210,000 Culpeper, VA, Water Utility Improvements, 5.375%, GO UT Bonds,
(Callable 4/1/2003 @ 102)/(MBIA Insured), 4/1/2008 AAA 197,969
----------------------------------------------------------------------
500,000 Danville, VA, Public Improvements, 6.20%, GO UT Bonds, (Callable
5/1/2002 @ 102), 5/1/2006 A 514,545
----------------------------------------------------------------------
200,000 Danville, VA, Public Improvements, 6.50%, GO UT Bonds, (Callable
2/1/2001 @ 101), 2/1/2005 A 211,738
----------------------------------------------------------------------
1,140,000 Fairfax County, VA, 5.30%, Refunding Revenue Bonds,
(Callable 11/15/2003 @ 102)/(AMBAC Insured), 11/15/2006 AAA 1,092,690
----------------------------------------------------------------------
1,505,000 Fairfax County, VA, 5.40%, Refunding Revenue Bonds,
(Callable 11/15/2003 @ 102)/(AMBAC Insured), 11/15/2007 AAA 1,439,442
----------------------------------------------------------------------
375,000 Fairfax County, VA, 5.75%, GO UT Refunding Bonds,
(Series C)/(Callable 10/1/99 @ 102)/(State Aid Withholding)/
(Original Issue Yield: 6.00%), 10/1/2008 AAA 369,686
----------------------------------------------------------------------
200,000 Fairfax County, VA, 6.00%, GO UT Refunding Bonds, (Series B)/(Callable
11/1/99 @ 101 3/4)/(State Aid
Withholding), 5/1/2006 AAA 205,680
----------------------------------------------------------------------
1,000,000 Fairfax County, VA, 6.00%, GO UT Refunding Bonds, (Series B)/(Callable
11/1/99 @ 102)/(State Aid Withholding), 5/1/2008 AAA 1,013,860
----------------------------------------------------------------------
500,000 Fairfax County, VA, IDA, 5.00%, Refunding Revenue Bonds, (Inova Health
System Project)/(Original Issue Yield: 5.10%), 8/15/2008 AA- 439,155
----------------------------------------------------------------------
390,000 Falls Church, VA, 5.25%, GO UT Refunding Bonds,
(Callable 8/1/2003 @ 101), 8/1/2007 A+ 363,710
----------------------------------------------------------------------
370,000 Falls Church, VA, 5.30%, GO UT Refunding Bonds,
(Callable 8/1/2003 @ 101-1/4), 8/1/2008 A+ 341,595
----------------------------------------------------------------------
800,000 Fauquier County, VA, School Improvements, 5.40%, GO UT Bonds,
(Callable 7/15/2003 @ 102), 7/15/2006 AA 774,856
----------------------------------------------------------------------
800,000 Fauquier County, VA, School Improvements, 5.45%, GO UT Bonds,
(Callable 7/15/2003 @ 102), 7/15/2007 AA 769,640
----------------------------------------------------------------------
300,000 Fauquier County, VA, School Improvements, 5.50%, GO UT Bonds,
(Callable 7/15/2003 @ 102), 7/15/2008 AA 286,845
----------------------------------------------------------------------
250,000 Fredericksburg, VA, 5.00%, GO UT Refunding Bonds,
(Callable 7/15/2000 @ 101), 7/15/2007 AA- 228,705
----------------------------------------------------------------------
400,000 Fredericksburg-Winchester Service Authority, VA, 5.60%, Regulatory
Sewer System Refunding Revenue Bonds,
(Callable 10/1/2003 @ 102)/(AMBAC Insured)/(Original Issue Yield:
5.65%), 10/1/2005 AAA 396,440
----------------------------------------------------------------------
1,000,000 Hampton Roads, VA, Capital Improvements, 5.10%, Wastewater Refunding
Revenue Bonds, (Callable 10/1/2003
@ 102)/(Original Issue Yield: 5.15%), 10/1/2008 AA 899,760
----------------------------------------------------------------------
1,000,000 Hampton Roads, VA, Medical College, 6.30%, Refunding Revenue Bonds,
(Series A)/(Callable 11/15/2001 @ 102)/ (Original Issue Yield: 6.40%),
11/15/2002 A- 1,016,740
----------------------------------------------------------------------
500,000 Hampton Roads, VA, Medical College, 6.50%, Refunding Revenue Bonds,
(Series A)/(Callable 11/15/2001 @ 102)/ (Original Issue Yield: 6.65%),
11/15/2005 A- 507,930
----------------------------------------------------------------------
1,000,000 Henrico County, VA, Public Improvements, 5.20%, GO UT Refunding Bonds,
(Callable 1/15/2003 @ 102)/(Original Issue Yield: 5.30%), 1/15/2007 AAA 943,490
----------------------------------------------------------------------
1,000,000 Henrico County, VA, Public Improvements, 5.20%, GO UT Refunding Bonds,
(Callable 1/15/2003 @ 102)/(Original Issue Yield: 5.35%), 1/15/2008 AAA 929,070
----------------------------------------------------------------------
300,000 Henry County, VA, Public Improvements, 5.55%, GO UT Bonds, (Callable
7/15/2004 @ 102)/(Original Issue Yield: 5.65%), 7/15/2005 A 293,544
----------------------------------------------------------------------
405,000 Herndon, VA, 5.00%, GO UT Refunding Bonds, (Callable
12/1/2003 @ 102)/(State Aid Withholding)/(Original Issue Yield:
5.10%), 12/1/2008 A1 359,227
----------------------------------------------------------------------
500,000 James Madison University, VA, 5.375%, Refunding Revenue Bonds,
(Callable 6/1/2003 @ 102)/(AMBAC Insured)/(Original Issue Yield:
5.481%), 6/1/2009 AAA 461,040
----------------------------------------------------------------------
500,000 Leesburg, VA, Sewer Improvements, 6.10%, Utility System Revenue Bonds,
(Callable 7/1/2002 @ 102)/(MBIA Insured)/ (Original Issue Yield:
6.15%), 7/1/2007 AAA 506,540
----------------------------------------------------------------------
1,000,000 Loudoun County, VA, 5.50%, GO UT Refunding Bonds, (Callable 10/1/2003
@ 102)/(State Aid Withholding)/(Original Issue Yield: 5.649%),
10/1/2007 AA- 964,030
----------------------------------------------------------------------
600,000 Loudoun County, VA, IDA, 5.50%, Revenue Bonds, (Northern Virginia
Criminal Justice)/(Callable 6/1/2003 @ 102)/ (Original Issue Yield:
5.829%), 6/1/2008 AA 565,554
----------------------------------------------------------------------
250,000 Loudoun County, VA, IDA, 6.25%, Refunding Revenue Bonds, (George
Washington University)/(Callable 5/15/2002 @ 102)/(Original Issue
Yield: 6.30%), 5/15/2006 A1 257,072
----------------------------------------------------------------------
200,000 Loudoun County, VA, Sanitation Authority, 6.00%, Water & Sewer
Refunding Revenue Bonds, (FGIC Insured)/(Original Issue Yield:
6.049%), 1/1/2003 AAA 206,676
----------------------------------------------------------------------
500,000 Loudoun County, VA, School Improvements, 5.10%, GO UT Bonds, (Series
A)/(Callable 10/1/2004 @ 102)/(State Aid Withholding), 10/1/2009 AA- 444,540
----------------------------------------------------------------------
1,000,000 Lynchburg, VA, 5.00%, GO UT Refunding Bonds, (Callable 4/1/2003 @
102)/(Original Issue Yield: 5.15%), 4/1/2004 AA 950,580
----------------------------------------------------------------------
1,850,000 Lynchburg, VA, 5.25%, GO UT Refunding Bonds, (Callable 4/1/2003 @
102)/(Original Issue Yield: 5.45%), 4/1/2007 AA 1,733,802
----------------------------------------------------------------------
395,000 Lynchburg, VA, IDA, 5.10%, Refunding Revenue Bonds, (Randolph-Macon
Women's Educational Facilities)/
(Original Issue Yield: 5.20%), 9/1/2003 A 376,293
----------------------------------------------------------------------
500,000 Lynchburg, VA, IDA, 5.30%, Refunding Revenue Bonds, (Randolph-Macon
Women's Educational Facilities)/(Callable 9/1/2003 @ 102)/(Original
Issue Yield: 5.40%), 9/1/2005 A 472,585
----------------------------------------------------------------------
500,000 Lynchburg, VA, IDA, 5.40%, Refunding Revenue Bonds, (Randolph-Macon
Women's Educational Facilities)/(Callable 9/1/2003 @ 102)/(Original
Issue Yield: 5.50%), 9/1/2006 A 470,545
----------------------------------------------------------------------
450,000 Lynchburg, VA, Public Improvements, 5.00%, GO UT Bonds, (Callable
4/1/2003 @ 102)/(State Aid Withholding), 4/1/2009 AA 394,907
----------------------------------------------------------------------
500,000 Lynchburg, VA, Public Improvements, 5.60%, GO UT Bonds, (Callable
3/1/2001 @ 102), 3/1/2006 AA 492,115
----------------------------------------------------------------------
500,000 Lynchburg, VA, Public Improvements, 5.80%, GO UT Bonds, (Callable
3/1/2001 @ 102), 3/1/2008 AA 496,520
----------------------------------------------------------------------
500,000 Manassas, VA, IDA, 7.30%, Refunding Revenue Bonds, (International
Business Machines)/(Callable 5/1/2000 @ 102), 5/1/2008 A3 539,840
----------------------------------------------------------------------
250,000 Nelson County, VA Service Authority, 5.20%, Water & Sewer Refunding
Revenue Bonds, (Callable 7/1/2003
@ 102)/(FGIC Insured), 7/1/2007 AAA 228,780
----------------------------------------------------------------------
1,500,000 Newport News, VA, 5.20%, GO UT Refunding Bonds,
(Series C)/(Callable 6/1/2003 @ 102), 6/1/2008 AA- 1,353,960
----------------------------------------------------------------------
500,000 Newport News, VA, 5.30%, GO UT Refunding Bonds,
(Series B)/(Callable 11/1/2003 @ 102)/(State Aid
Withholding), 11/1/2005 AA- 476,790
----------------------------------------------------------------------
480,000 Newport News, VA, 5.40%, GO UT Refunding Bonds,
(Series B)/(Callable 11/1/2003 @ 102)/(State Aid
Withholding), 11/1/2007 AA 449,981
----------------------------------------------------------------------
1,500,000 Newport News, VA, 5.45%, GO UT Refunding Bonds,
(Series B)/(Callable 11/1/2003 @ 102)/(State Aid
Withholding), 11/1/2008 AA- 1,395,225
----------------------------------------------------------------------
345,000 Newport News, VA, 5.45%, GO UT Refunding Bonds,
(Series B)/(Callable 11/1/2003 @ 102)/(State Aid
Withholding), 11/1/2008 AA 320,902
----------------------------------------------------------------------
500,000 Newport News, VA, 5.80%, GO UT Refunding Bonds,
(Series B)/(Callable 7/1/99 @ 102)/(Original Issue Yield: 5.90%),
7/1/2007 AA 491,120
----------------------------------------------------------------------
725,000 Newport News, VA, 5.80%, GO UT Refunding Improvements Bonds, (Series
B)/(Callable 7/1/99 @ 102)/(Original Issue Yield: 5.90%), 7/1/2007 AA- 722,984
----------------------------------------------------------------------
350,000 Newport News, VA, Water Utility Improvements, 5.90%, GO UT Bonds,
(Series A)/(Callable 6/1/2002 @ 100 3/4),
6/1/2005 AA 354,109
----------------------------------------------------------------------
1,835,000 Newport News, VA, Water Utility Improvements, 6.10%, GO UT Bonds,
(Series A)/(Callable 6/1/2002 @ 101-1/2),
6/1/2008 AA 1,841,551
----------------------------------------------------------------------
500,000 Norfolk, VA, 5.00%, GO UT Refunding Bonds, (Series A)/ (Original Issue
Yield: 5.15%), 6/1/2006 AA 464,375
----------------------------------------------------------------------
500,000 Norfolk, VA, IDA, 5.10%, Refunding Revenue Bonds, (Children's Hospital
King's Group)/(Callable 6/1/2004 @ 102)/ (AMBAC Insured)/(Original
Issue Yield: 5.25%), 6/1/2007 AAA 454,215
----------------------------------------------------------------------
250,000 Norfolk, VA, IDA, 6.60%, Revenue Bonds, (Children's Hospital King's
Group)/(AMBAC Insured)/(Original Issue Yield: 6.70%), 6/1/2002 AAA 266,672
----------------------------------------------------------------------
250,000 Norfolk, VA, IDA, 6.75%, Revenue Bonds, (Children's Hospital King's
Group)/(AMBAC Insured)/(Original Issue Yield: 6.85%), 6/1/2004 AAA 270,633
----------------------------------------------------------------------
1,000,000 Norfolk, VA, Public Improvements, 5.25%, GO UT Refunding Bonds,
(Callable 2/1/2003 @ 102)/(Original Issue Yield: 5.35%), 2/1/2006 AA 955,480
----------------------------------------------------------------------
1,000,000 Norfolk, VA, Public Improvements, 5.25%, GO UT Refunding Bonds,
(Callable 6/1/2004 @ 101)/(State Aid
Withholding)/Original Issue Yield: 5.35%), 6/1/2008 AA 927,980
----------------------------------------------------------------------
500,000 Norfolk, VA, Public Improvements, 6.00%, GO UT Refunding Bonds,
(Series A)/(Callable 2/1/2001 @ 102)/
(Original Issue Yield: 6.20%), 2/1/2008 AA 503,860
----------------------------------------------------------------------
250,000 Peninsula Port Authority of VA, 6.10%, Refunding Revenue Bonds,
(Riverside Health System Project)/(Original Issue Yield: 6.25%),
7/1/2002 AA 254,290
----------------------------------------------------------------------
1,000,000 Petersburg, VA, Hospital Authority, 5.90%, Refunding Revenue Bonds,
(Southside Regional Medical Center), 7/1/2002 A 984,650
----------------------------------------------------------------------
550,000 Pittsylvania County, VA, Public Improvements, 5.55%, GO UT Bonds,
(Callable 7/1/2004 @ 102), 7/1/2005 A 542,509
----------------------------------------------------------------------
400,000 Pittsylvania County, VA, Public Improvements, 5.65%, GO UT Bonds,
(Callable 7/1/2004 @ 102), 7/1/2006 A 394,228
----------------------------------------------------------------------
300,000 Portsmouth, VA, 6.40%, GO UT Refunding Bonds, (Callable 11/1/2001 @
102), 11/1/2003 AA- 319,527
----------------------------------------------------------------------
500,000 Portsmouth, VA, Public Utility Improvements, 5.45%, GO UT Refunding
Bonds, (Callable 8/1/2003 @ 102)/(Original Issue Yield: 5.60%),
8/1/2007 AA- 479,465
----------------------------------------------------------------------
500,000 Prince George County, VA, Public Improvements, 5.60%, GO UT Refunding
Bonds, (Callable 8/1/2003 @ 102),
8/1/2008 A 478,615
----------------------------------------------------------------------
1,000,000 Prince William County, VA, 5.00%, GO UT Refunding Bonds, (Series
C)/(Callable 8/1/2003 @ 102)/(State Aid
Withholding)/(Original Issue Yield: 5.15%), 8/1/2007 AA 912,120
----------------------------------------------------------------------
1,000,000 Prince William County, VA, 5.10%, GO UT Refunding Bonds, (Series
C)/(Callable 8/1/2003 @ 102)/(State Aid
Withholding)/(Original Issue Yield: 5.20%), 8/1/2008 AA 908,230
----------------------------------------------------------------------
500,000 Prince William County, VA, IDA, 5.50%, Refunding Revenue Bonds, (First
Mortgage-KMart), 7/15/2002 A 484,480
----------------------------------------------------------------------
1,000,000 Prince William County, VA, Water & Sewer System Authority, 4.75%,
Refunding Revenue Bonds, (Callable
7/1/2003 @ 102)/(FGIC Insured)/(Original Issue Yield: 4.80%), 7/1/2007 AAA 865,420
----------------------------------------------------------------------
250,000 Richmond, VA, Metropolitan Authority, 5.90%, Refunding Revenue Bonds,
(Series B)/(Callable 7/15/2002 @ 102)/(FGIC Insured)/(Original Issue
Yield: 5.949%), 7/15/2003 AAA 256,522
----------------------------------------------------------------------
500,000 Richmond, VA, Metropolitan Authority, 6.05%, Refunding Revenue Bonds,
(Series B)/(Callable 7/15/2002 @ 102)/(FGIC Insured)/(Original Issue
Yield: 6.149%), 7/15/2005 AAA 514,450
----------------------------------------------------------------------
760,000 Richmond, VA, Public Improvement, 5.30%, GO UT Refunding Bonds,
(Series A)/(State Aid Withholding),
1/15/2006 AA 727,548
----------------------------------------------------------------------
500,000 Richmond, VA, Public Improvements, 5.45%, GO UT Bonds, (Series
B)/(State Aid Withholding), 7/15/2008 AA 470,820
----------------------------------------------------------------------
140,000 Richmond, VA, Public Improvements, 6.25%, GO UT Bonds, (Series
A)/(Callable 7/15/2002 @ 102), 7/15/2005 AA 146,665
----------------------------------------------------------------------
500,000 Richmond, VA, Public Improvements, 6.30%, GO UT Refunding Bonds,
(Callable 1/15/2001 @ 102)/(Original Issue Yield: 6.40%), 1/15/2004 AA 524,935
----------------------------------------------------------------------
160,000 Richmond, VA, Public Improvements, 6.40%, GO UT Bonds, (Series
A)/(Callable 1/15/2001 @ 102)/(Original Issue Yield: 6.50%), 1/15/2005 AA 167,731
----------------------------------------------------------------------
625,000 Richmond, VA, Public Improvements, 6.40%, GO UT Refunding Bonds,
(Series B)/(Callable 1/15/2001 @ 102)/ (Original Issue Yield: 6.50%),
1/15/2005 AA 655,200
----------------------------------------------------------------------
250,000 Richmond, VA, Public Improvements, 6.60%, GO UT Refunding Bonds,
(Series B)/(Callable 1/15/2001 @ 102)/ (Original Issue Yield: 6.70%),
1/15/2007 AA 262,317
----------------------------------------------------------------------
250,000 Richmond, VA, Sewer Improvements, 6.00%, GO UT Bonds, (Series
B)/(Callable 7/15/2002 @ 102)/(Original Issue Yield: 6.10%), 7/15/2005 AA 257,433
----------------------------------------------------------------------
500,000 Rivanna Water & Sewer Authority, VA, 4.75%, Refunding Revenue Bonds,
(Callable 10/1/2003 @ 101-1/2)/(Original Issue Yield: 4.90%),
10/1/2008 Aa 428,175
----------------------------------------------------------------------
750,000 Roanoke, VA, Carilion Health System, IDA, 6.90%, Refunding Revenue
Bonds, (Roanoke Memorial Hospital Project)/(Original Issue Yield:
7.00%), 7/1/99 A+ 790,425
----------------------------------------------------------------------
605,000 Roanoke, VA, IDA, 5.80%, Refunding Revenue Bonds,
(Roanoke Memorial Hospital)/(Series B)/(Callable 7/1/2002
@ 102)/(Original Issue Yield: 5.90%), 7/1/2005 A+ 591,702
----------------------------------------------------------------------
1,185,000 Roanoke, VA, IDA, 6.00%, Refunding Revenue Bonds,
(Roanoke Memorial Hospital)/(Series B)/(Callable 7/1/2002 @
102)/(Original Issue Yield: 6.10%), 7/1/2007 A1 1,147,969
----------------------------------------------------------------------
1,000,000 Roanoke, VA, Public Improvements, 4.70%, GO UT Bonds, (Callable
8/1/2004 @ 102), 8/1/2005 AA 903,360
----------------------------------------------------------------------
1,670,000 Roanoke, VA, Public Improvements, 5.00%, GO UT Bonds, (Callable
8/1/2004 @ 102), 8/1/2009 AA 1,472,840
----------------------------------------------------------------------
295,000 Roanoke, VA, Public Improvements, 6.25%, GO UT Bonds, (Series
B)/(Callable 8/1/2001 @ 101-1/4), 8/1/2006 AA 307,071
----------------------------------------------------------------------
500,000 Roanoke County, VA, Public Improvements, 5.50%, GO UT Refunding Bonds,
(Callable 6/1/2003 @ 102)/(Original Issue Yield: 5.60%), 6/1/2007 AA 480,560
----------------------------------------------------------------------
600,000 Roanoke County, VA, Public Improvements, 5.55%, GO UT Refunding Bonds,
(Callable 6/1/2003 @ 102)/(Original Issue Yield: 5.65%), 6/1/2008 AA 572,310
----------------------------------------------------------------------
100,000 Roanoke County, VA, Water Utility Improvements, 6.20%, GO UT Bonds,
(Callable 6/1/2001 @ 102), 6/1/2005 AA 103,719
----------------------------------------------------------------------
100,000 Roanoke County, VA, Water Utility Improvements, 6.30%, GO UT Bonds,
(Callable 6/1/2001 @ 102), 6/1/2006 AA 103,634
----------------------------------------------------------------------
150,000 Salem, VA, 6.70%, Refunding Bond, 6/1/2004 AA 156,553
----------------------------------------------------------------------
250,000 South Boston, VA, Public Improvements, 6.70%, GO UT Bonds, (Callable
7/1/98 @ 102)/(AMBAC Insured), 7/1/2005 AAA 263,228
----------------------------------------------------------------------
100,000 Stafford County, VA, Public Improvements, 6.50%, GO UT Bonds, (Series
A)/(Callable 6/1/2000 @ 100 3/4), 6/1/2003 A+ 104,809
----------------------------------------------------------------------
100,000 Stafford County, VA, Public Improvements, 6.60%, GO UT Bonds, (Series
A)/(Callable 6/1/2000 @ 101), 6/1/2004 A+ 105,124
----------------------------------------------------------------------
500,000 Suffolk, VA, Public Improvements, 5.70%, GO UT Refunding Bonds,
(Callable 8/1/2003 @ 102)/(Original Issue Yield: 5.80%), 8/1/2007 A 485,785
----------------------------------------------------------------------
300,000 Vienna, VA, Public Improvements, 5.25%, GO UT Bonds,
8/1/2007 AA 283,107
----------------------------------------------------------------------
300,000 Vienna, VA, Public Improvements, 5.30%, GO UT Bonds,
8/1/2008 AA 280,686
----------------------------------------------------------------------
900,000 Virginia Beach, VA, 6.00%, GO UT Refunding Bonds, (Callable 2/1/2002 @
102)/(Original Issue Yield: 6.10%), 2/1/2006 AA 921,870
----------------------------------------------------------------------
295,000 Virginia Beach, VA, Development Authority, 6.30%, Revenue Bonds,
(Sentara Bayside Hospital)/(Callable 11/1/2001
@ 102)/(Original Issue Yield: 6.35%), 11/1/2004 AA 301,732
----------------------------------------------------------------------
500,000 Virginia Beach, VA, Public Improvements, 5.70%, GO UT Bonds, (Callable
7/15/2002 @ 102), 7/15/2006 AA 497,830
----------------------------------------------------------------------
500,000 Virginia Beach, VA, Public Improvements, 5.80%, GO UT Bonds, (Callable
7/15/2002 @ 102), 7/15/2007 AA 498,610
----------------------------------------------------------------------
665,000 Virginia Beach, VA, Public Improvements, 5.90%, GO UT Bonds, (Callable
7/15/2002 @ 102), 7/15/2008 AA 664,308
----------------------------------------------------------------------
350,000 Virginia Beach, VA, Public Improvements, 6.50%, GO UT Bonds, (Series
C)/(Callable 8/1/2001 @ 102), 8/1/2005 AA 371,833
----------------------------------------------------------------------
200,000 Virginia Beach, VA, Public Improvements, 6.50%, GO UT Bonds, (Series
C)/(Callable 8/1/2001 @ 102), 8/1/2007 AA 210,146
----------------------------------------------------------------------
250,000 Virginia Beach, VA, Public Improvements, 6.90%, GO UT Bonds, (Series
A)/(Prerefunded 6/1/2000 @ 102), 6/1/2004 AA 275,042
----------------------------------------------------------------------
500,000 Virginia Beach, VA, School Improvements, 5.40%, GO UT Bonds, (Series
A)/(Callable 7/15/2003 @ 102)/(Original Issue Yield: 5.45%), 7/15/2007 AA 476,855
----------------------------------------------------------------------
500,000 Virginia Beach, VA, School Improvements, 5.50%, GO UT Bonds, (Series
A)/(Callable 7/15/2003 @ 102), 7/15/2008 AA 476,270
----------------------------------------------------------------------
300,000 Virginia Beach, VA, Water Utility & Sewer Improvements, 6.125%,
Revenue Bonds, (Prerefunded 2/1/2002 @ 102)/
(Original Issue Yield: 6.25%), 2/1/2003 A+ 314,823
----------------------------------------------------------------------
1,000,000 Virginia College Building Authority, VA, 5.50%, Refunding Revenue
Bonds, (Hampton University Project)/(Callable
4/1/2003 @ 102)/(Original Issue Yield: 5.60%), 4/1/2005 A+ 964,450
----------------------------------------------------------------------
500,000 Virginia College Building Authority, VA, University & College
Improvements, 5.55%, Revenue Bonds, (University of Richmond
Project)/(Callable 11/1/2004 @ 100), 11/1/2019 Aa 498,040
----------------------------------------------------------------------
250,000 Virginia College Building Authority, VA, University &
College Improvements, 6.40%, Revenue Bonds, (University of Richmond
Project)/(Callable 11/1/99 @ 101), 11/1/2022 AA 264,197
----------------------------------------------------------------------
150,000 Virginia College Building Authority, VA, University & College
Improvements, 7.00%, Revenue Bonds, (Washington & Lee
University)/(Series B)/(Prerefunded 1/1/2000 @ 102)/ (Original Issue
Yield: 7.085%), 1/1/2004 AA- 164,545
----------------------------------------------------------------------
1,000,000 Virginia State, 5.10%, GO UT Bonds, (Series B)/(Callable
12/1/2003 @ 102), 12/1/2007 AAA 932,570
----------------------------------------------------------------------
1,000,000 Virginia State, 5.20%, GO UT Refunding Bonds, /(Callable
6/1/2003 @ 102)/(Original Issue Yield: 5.25%), 6/1/2008 AAA 931,300
----------------------------------------------------------------------
500,000 Virginia State HDA, 5.45%, Revenue Bonds, (Series C)/
1/1/2002 Aa 492,610
----------------------------------------------------------------------
385,000 Virginia State HDA, 6.05%, Revenue Bonds, (Series F)/
(Callable 11/1/2002 @ 102), 11/1/2006 AA 383,344
----------------------------------------------------------------------
410,000 Virginia State HDA, 6.10%, Revenue Bonds, (Series F)/
(Callable 11/1/2002 @ 102), 11/1/2007 AA 405,970
----------------------------------------------------------------------
450,000 Virginia State HDA, 6.20%, Revenue Bonds, (Series B)/
(Callable 1/1/97 @ 102)/(FHA/VA Mortgages), 1/1/2001 AA 456,984
----------------------------------------------------------------------
280,000 Virginia State Multifamily, HDA, 6.25%, Refunding
Revenue Bonds, (Series D), 11/1/2000 A1 286,796
----------------------------------------------------------------------
100,000 Virginia State Multifamily, HDA, 7.15%, Refunding Revenue Bonds,
(Series D)/(Callable 11/1/99 @ 102), 11/1/2002 A1 103,350
----------------------------------------------------------------------
300,000 Virginia State Public Building Authority, 5.80%, Refunding Revenue
Bonds, (Series A)/(Callable 8/1/2001 @ 101),
8/1/2002 AA 308,040
----------------------------------------------------------------------
3,000,000 Virginia State Public Building Authority, 6.00%, Refunding Revenue
Bonds, (Series A)/(Callable 8/1/2001 @ 101),
8/1/2003 AA 3,109,950
----------------------------------------------------------------------
1,310,000 Virginia State Public Building Authority, Public Improvements, 5.25%,
Refunding Revenue Bonds, (Series A)/
(Callable 8/1/2003 @ 101)/(Original Issue Yield: 5.30%),
8/1/2006 AA 1,243,426
----------------------------------------------------------------------
3,000,000 Virginia State Public Building Authority, Public Improvements, 5.40%,
Revenue Bonds, (Series C)/(Callable 8/1/2002 @ 101), 8/1/2005 AA 2,925,360
----------------------------------------------------------------------
1,500,000 Virginia State Public Building Authority, Public Improvements, 5.40%,
Refunding Revenue Bonds, (Series A)/(Callable 8/1/2003 @
101)/(Original Issue Yield: 5.45%), 8/1/2008 AA 1,406,685
----------------------------------------------------------------------
755,000 Virginia State Public Building Authority, Public Improvements, 5.60%,
Revenue Bonds, (Series C)/(Callable 8/1/2002 @ 101)/ (Original Issue
Yield: 5.70%), 8/1/2007 AA 734,736
----------------------------------------------------------------------
360,000 Virginia State Public Building Authority, Public Improvements, 6.60%,
Revenue Bonds, (Series A)/(Callable 8/1/2001 @ 102)/(Original Issue
Yield: 6.65%), 8/1/2004 AA 385,304
----------------------------------------------------------------------
520,000 Virginia State, Public Improvements, 5.60%, GO UT Bonds, (Series
A)/(Callable 6/1/2003 @ 102), 6/1/2007 AAA 513,458
----------------------------------------------------------------------
500,000 Virginia State, Public Improvements, 5.70%, GO UT Bonds, (Series
A)/(Callable 6/1/2003 @ 102), 6/1/2008 AAA 493,885
----------------------------------------------------------------------
400,000 Virginia State Public School Authority, 5.125%, Refunding Revenue
Bonds, (Series B)/(Callable 1/1/2004 @ 102)/(State Aid
Withholding)/(Original Issue Yield: 5.30%), 1/1/2006 AA 375,044
----------------------------------------------------------------------
320,000 Virginia State Public School Authority, 5.25%, Refunding Revenue
Bonds, (Series B)/(Callable 1/1/2004 @ 102)/(State Aid
Withholding)/(Original Issue Yield: 5.40%), 1/1/2007 AA 299,616
----------------------------------------------------------------------
500,000 Virginia State Public School Authority, 5.30%, Revenue Bonds, (Series
B)/(State Aid Withholding), 1/1/2002 AA 496,100
----------------------------------------------------------------------
600,000 Virginia State Public School Authority, 5.75%, Revenue Bonds, (Series
B)/(Callable 1/1/2003 @ 102)/(State Aid
Withholding), 1/1/2008 AA 586,356
----------------------------------------------------------------------
250,000 Virginia State Public School Authority, 6.25%, Refunding Revenue
Bonds, (Callable 1/1/2002 @ 102), 1/1/2008 AA 255,070
----------------------------------------------------------------------
830,000 Virginia State Public School Authority, School Improvements, 5.10%,
Revenue Bonds, (Series A)/(Callable 1/1/2003 @ 102)/(State Aid
Withholding), 1/1/2005 AA 784,259
----------------------------------------------------------------------
1,350,000 Virginia State Public School Authority, School Improvements, 5.30%,
Revenue Bonds, (Series A)/(Callable 1/1/2003 @ 102)/(State Aid
Withholding), 1/1/2007 AA 1,270,930
----------------------------------------------------------------------
465,000 Virginia State Public School Authority, School Improvements, 5.90%,
Revenue Bonds, (Callable 8/1/2002 @ 102)/ (Original Issue Yield:
6.00%), 8/1/2006 AA 470,138
----------------------------------------------------------------------
500,000 Virginia State Public School Authority, School Improvements, 6.00%,
Revenue Bonds, (Series A)/(Callable 8/1/2004 @ 102)/(State Aid
Withholding), 8/1/2005 AA 514,400
----------------------------------------------------------------------
250,000 Virginia State Resource Authority, Sewer System Authority, Sewer
Improvements, 5.90%, Refunding Revenue Bonds, (Harrisonburg-Rockingham
Regional-A)/(Callable
5/1/2003 @ 102)/(Original Issue Yield: 6.004%), 5/1/2007 AA 250,322
----------------------------------------------------------------------
300,000 Virginia State Resource Authority, Solid Waste Disposal System, 5.10%,
Revenue Bonds, (Series E)/(Callable
5/1/2002 @ 100), 5/1/2006 AA 279,288
----------------------------------------------------------------------
335,000 Virginia State Resource Authority, Solid Waste Disposal System,
Resource Recovery Improvements, 5.45%, Revenue Bonds, (Fauquier County
Project)/(Series A)/(Callable
5/1/2003 @ 102), 5/1/2006 AA 323,208
----------------------------------------------------------------------
275,000 Virginia State Resource Authority, Water & Sewer System, 5.15%,
Refunding Revenue Bonds, (Stoney Creek Sanitation Lot 20)/(Callable
10/1/2003 @ 102), 10/1/2007 AA 252,857
----------------------------------------------------------------------
300,000 Virginia State Resource Authority, Water & Sewer System, 5.85%,
Refunding Revenue Bonds, (Frederick County-Lot
9)/(Callable 10/1/2002 @ 102)/(Original Issue Yield: 5.95%),
10/1/2006 AA 301,344
----------------------------------------------------------------------
200,000 Virginia State Resource Authority, Water & Sewer System, 6.70%,
Revenue Bonds, (Rapidan Service Authority-Lot 7)/ (Callable 10/1/98 @
103)/(Original Issue Yield: 6.80%),
10/1/2004 AA 212,456
----------------------------------------------------------------------
1,000,000 Virginia State Transportation Board Contract, 5.375%, Refunding
Revenue Bonds, (U.S. Route 58 Corridor PG-A)/ (Callable 5/15/2003 @
102)/(Original Issue Yield: 5.50%),
5/15/2007 AA 946,830
----------------------------------------------------------------------
750,000 Virginia State Transportation Board Contract, 5.40%, Refunding Revenue
Bonds, (U.S. Route 58 Corridor PG-A)/ (Callable 5/15/2003 @
102)/(Original Issue Yield: 5.55%),
5/15/2008 AA 701,168
----------------------------------------------------------------------
600,000 Virginia State Transportation Board Contract, 6.00%, Refunding Revenue
Bonds, (Route 28 Project)/(Callable
4/1/2002 @ 102)/(Original Issue Yield: 6.20%), 4/1/2004 AA 618,390
----------------------------------------------------------------------
550,000 Virginia State Transportation Board Contract, 6.00%, Refunding Revenue
Bonds, (Route 28 Project)/(Callable
4/1/2002 @ 102)/(Original Issue Yield: 6.30%), 4/1/2005 AA 567,672
----------------------------------------------------------------------
1,800,000 Virginia State Transportation Board Contract, 6.00%, Refunding Revenue
Bonds, (Route 28 Project)/(Callable
4/1/2002 @ 102)/(Original Issue Yield: 6.40%), 4/1/2007 AA 1,833,894
----------------------------------------------------------------------
1,500,000 Virginia State Transportation Board Contract, Highway Improvements,
5.10%, Revenue Bonds, (Northern Virginia Transportation District
PG)/(Series C)/(Callable 5/15/2003
@ 102)/(Original Issue Yield: 5.228%), 5/15/2007 AA 1,375,335
----------------------------------------------------------------------
500,000 Virginia State Transportation Board Contract, Highway Improvements,
5.25%, Revenue Bonds, (Northern Virginia Transportation District
PG)/(Series C)/(Callable 5/15/2003
@ 102)/(Original Issue Yield: 5.323%), 5/15/2008 AA 461,015
----------------------------------------------------------------------
615,000 Virginia State, University & College Improvements, 5.75%, GO UT
Revenue Bonds, (Higher Educational Institute)/ (Series D)/(Callable
6/1/2002 @ 102), 6/1/2008 AAA 610,923
----------------------------------------------------------------------
1,000,000 Virginia State, University & College Improvements, 6.50%, Revenue
Bonds, (Higher Educational Institutionals)/
(Series A)/(Prerefunded 6/1/99 @ 102), 6/1/2006 AAA 1,074,530
----------------------------------------------------------------------
250,000 Warrenton, VA, 5.50%, GO UT Refunding Bonds, (Callable 9/1/2003 @
102)/(Original Issue Yield: 5.65%), 9/1/2007 A1 239,508
----------------------------------------------------------------------
</TABLE>
THE VIRGINIA MUNICIPAL BOND FUND
(FORMERLY, VIRGINIA MUNICIPAL BOND FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
PRINCIPAL RATING:
AMOUNT MOODY'S
OR SHARES OR S&P* VALUE
<C> <S> <C> <C>
- ------------ ---------------------------------------------------------------------- ---------- --------------
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------------------
$ 495,000 Waynesboro, VA, 4.70%, GO UT Refunding Bonds,
(Callable 2/1/2004 @ 101)/(State Aid Withholding)/
(Original Issue Yield: 4.80%), 2/1/2006 A1 $ 439,585
----------------------------------------------------------------------
385,000 Waynesboro, VA, 4.85%, GO UT Refunding Bonds,
(Callable 2/1/2004 @ 101-1/2)/(State Aid Withholding)/
(Original Issue Yield: 4.95%), 2/1/2007 A1 343,666
----------------------------------------------------------------------
100,000 Waynesboro, VA, IDA, Pollution Control, 5.45%, Revenue Bonds, (E I
DuPont deNemours & Co.)/(Callable 11/21/94
@ 100), 4/1/2007 A1 96,059
----------------------------------------------------------------------
390,000 Waynesboro, VA, School Improvements, 5.35%, GO UT Bonds, (Callable
2/1/2002 @ 102), 2/1/2006 A1 374,595
----------------------------------------------------------------------
540,000 Waynesboro, VA, School Improvements, 5.40%, GO UT Bonds, (Callable
2/1/2002 @ 102), 2/1/2009 A1 499,792
----------------------------------------------------------------------
215,000 West Point, VA, 4.70%, GO UT Refunding Bonds, (Callable 6/1/2003 @
102)/(Original Issue Yield: 4.80%), 6/1/2007 A 189,860
----------------------------------------------------------------------
225,000 West Point, VA, 4.80%, GO UT Refunding Bonds, (Callable 6/1/2003 @
102)/(Original Issue Yield: 4.90%), 6/1/2008 A 198,245
----------------------------------------------------------------------
150,000 Winchester, VA, Public Improvements, 6.60%, GO UT Bonds, (Callable
3/1/2001 @ 102), 3/1/2006 AA 158,919
----------------------------------------------------------------------
500,000 Winchester, VA, Water Utility Improvements, 5.20%, GO UT Refunding
Bonds, (Callable 1/15/2004 @ 102)/(State Aid Withholding)/(Original
Issue Yield: 5.35%), 1/15/2006 AA 474,950
---------------------------------------------------------------------- --------------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $109,939,186) 106,001,793
---------------------------------------------------------------------- --------------
MUTUAL FUND SHARES--1.4%
- ------------------------------------------------------------------------------------
758,380 Goldman Sachs Institutional Tax-Exempt 758,380
----------------------------------------------------------------------
758,380 Municipal Funds for Temporary Investment 758,380
---------------------------------------------------------------------- --------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 1,516,760
---------------------------------------------------------------------- --------------
TOTAL INVESTMENTS, (IDENTIFIED COST $111,455,946) $ 107,518,553+
---------------------------------------------------------------------- --------------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $111,455,946. The
net unrealized depreciation of investments on a federal tax basis amounts to
$3,937,393, which is comprised of $615,998 appreciation and $4,553,391
depreciation at September 30, 1994.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings. Current credit ratings are unaudited.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC--American Municipal Bond IDA--Industrial Development Authority
Assurance Corporation LOC--Letter(s) of Credit
FGIC--Financial Guaranty Insurance Company MBIA--Municipal Bond Investors Assurance
GO--General Obligation UT--Unlimited Tax
HDA--Housing Development Authority
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($108,870,654) at September 30, 1994.
(See Notes which are an integral part of the Financial Statements)
THE MARYLAND MUNICIPAL BOND FUND
(FORMERLY, MARYLAND MUNICIPAL BOND FUND)
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
---------------------------------------------------------------------------
With much uncertainty surrounding the direction of the bond market and
the Federal Reserve Board's (the "Fed") initiative, our investment strategy
remains defensive. Until Gross Domestic Product growth falls below 3%, we
will remain cautious on the market.
The probability of the Fed forcing short rates higher continues to be
a topic of much discussion. The series of declining unemployment figures
has signaled an expanding economy nearing full capacity. The weakness in
the dollar is of major concern as it heightens the potential for
accelerated inflation. From this, another upward push in interest rates
could result, but should be interpreted as another in a series of moves
from an accommodative monetary policy to a neutral one.
Assets remained stable throughout the quarter for The Maryland
Municipal Bond Fund (the "Fund"). The Fund's primary emphasis is to
concentrate in higher coupon, premium bonds as opposed to lower coupon,
discounts. The Fund continues to gravitate toward a more equal weighting
between General Obligations and Revenue bonds, concentrating in the 7-15
year range. Rating spread differentials have widened only slightly, and
stressing higher quality credits remains appropriate. The target average
weighted maturity for the Fund is approximately 10 years.
THE MARYLAND MUNICIPAL BOND FUND--Investment Shares
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN THE MARYLAND MUNICIPAL BOND FUND--INVESTMENT
SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Maryland Municipal Bond Fund (the "Fund") from October 30, 1990 (start of
performance) to September 30, 1994 compared to the Lehman Brothers 10 Year
Municipal Bond Index ("LBMBI").+
[GRAPH INSERTS HERE]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Reflects operations of the Fund from the start of performance 10/30/90 through
9/30/94, on a cumulative basis.
**Represents a hypothetical investment of $10,000 in the Fund. The ending value
of the Fund reflects a contingent deferred sales charge of 2.00% on any
redemption less than 5 years from the purchase date. The Fund's performance
assumes the reinvestment of all dividends and distributions.
+The LBMBI IS not adjusted to reflect sales loads, expenses, or other fees that
the SEC requires to be reflected in the Fund's performance. The LBMBI has been
adjusted to reflect reinvestment of dividends on securities in the index. This
index is unmanaged.
THE MARYLAND MUNICIPAL BOND FUND--Trust Shares
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN THE MARYLAND MUNICIPAL BOND FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Maryland Municipal Bond Fund (the "Fund") from OCTOBER 30, 1990 (start of
performance) to September 30, 1994 compared to the Lehman Brothers 10 Year
Municipal Bond Index ("LBMBI").+
[GRAPH INSERTS HERE]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Reflects operations of the Fund from the start of performance 10/30/90 through
9/30/94, on a cumulative basis.
**Represents a hypothetical investment of $10,000 in the Fund. The Fund's
performance assumes the reinvestment of all dividends and distributions.
+The LBMBI IS not adjusted to reflect sales loads, expenses, or other fees that
the SEC requires to be reflected in the Fund's performance. The LBMBI has been
adjusted to reflect reinvestment of dividends on securities in the INDEX. This
index is unmanaged.
THE MARYLAND MUNICIPAL BOND FUND
(FORMERLY, MARYLAND MUNICIPAL BOND FUND)
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------ ------------------------------------------------------------------------ ---------- -------------
LONG-TERM MUNICIPAL SECURITIES--97.6%
- --------------------------------------------------------------------------------------
$ 555,000 Annapolis, MD, Public Improvement GO Bonds, 5.90%,
7/15/2005 A+ $ 566,039
------------------------------------------------------------------------
500,000 Anne Arundel County, MD, Consolidated General
Improvement GO Bonds, 5.70%, 7/15/2003 AA+ 511,045
------------------------------------------------------------------------
100,000 Anne Arundel County, MD, Consolidated General
Improvement GO Bonds, 6.50%, 4/15/2007 AA+ 105,140
------------------------------------------------------------------------
350,000 Anne Arundel County, MD, Revenue Bonds, 5.125%, (Solid Waste Project),
7/15/2007 AA+ 327,037
------------------------------------------------------------------------
585,000 Anne Arundel County, MD, Consolidated General
Improvement, Water & Sewer GO Bonds, 4.80%, 2/1/2008 AA+ 516,222
------------------------------------------------------------------------
250,000 Baltimore County, MD, Consolidated Public Improvement GO Bonds, 6.40%,
(Series A)/(FGIC Insured), 10/15/2001 AAA 267,190
------------------------------------------------------------------------
250,000 Baltimore County, MD, Consolidatd Public Improvement GO Bonds, 6.25%,
(Series C)/(FGIC Insured), 10/15/2003 AAA 264,670
------------------------------------------------------------------------
300,000 Baltimore County, MD, Consolidated Public Improvement GO Bonds, 6.125%,
7/1/2008 Aaa 305,808
------------------------------------------------------------------------
1,000,000 Baltimore County, MD, Revenue Authority, Refunding
Revenue Bonds, 5.25%, 7/1/2008 A 906,810
------------------------------------------------------------------------
400,000 Baltimore County, MD, Revenue Authority, Refunding
Revenue Bonds, 4.90%, 10/1/2008 Aa1 352,480
------------------------------------------------------------------------
850,000 Baltimore County, MD, 63rd Met District GO Bonds, 6.125%, 7/1/2007 Aaa 875,364
------------------------------------------------------------------------
500,000 Baltimore County, MD, 63rd Met District GO Bonds, 6.10%, 7/1/2006 Aaa 517,395
------------------------------------------------------------------------
395,000 Baltimore County, MD, 63rd Met District GO Bonds, 5.80%, 7/1/2003 Aaa 406,143
------------------------------------------------------------------------
500,000 Baltimore, MD, Participation Certificates, 5.50%, (Series 1993B)/(MBIA
Insured), 4/1/2007 AAA 477,805
------------------------------------------------------------------------
500,000 Baltimore, MD, Consolidated Public Improvement GO Bonds, 5.30%, (Series
A)/(AMBAC Insured), 10/15/2007 AAA 466,060
------------------------------------------------------------------------
1,000,000 Baltimore, MD, Consolidated Public Improvement GO Bonds, 5.375%, (Series
A)/(AMBAC Insured), 10/15/2008 AAA 928,670
------------------------------------------------------------------------
250,000 Bel Air, MD, CTFS Participation Capital Refunding Notes, 5.40%, (Series
1993)/(Capital Guaranty), 6/1/2007 AAA 236,585
------------------------------------------------------------------------
250,000 Bel Air, MD, CTFS Participation Capital Refunding Notes, 5.40%, (Series
1993)/(Capital Guaranty), 12/01/2007 AAA 236,018
------------------------------------------------------------------------
250,000 Bel Air, MD, CTFS Participation Capital Refunding Notes, 5.50%, (Series
1993)/(Capital Guaranty), 6/1/2008 AAA 235,980
------------------------------------------------------------------------
250,000 Bel Air, MD, CTFS Participation Capital Refunding Notes, 5.50%, (Series
1993)/(Capital Guaranty), 12/1/2008 AAA 235,655
------------------------------------------------------------------------
1,000,000 Calvert County, MD, Public Improvement, Refunding
Revenue Bonds, 4.875%, 7/15/2008 Aa 873,210
------------------------------------------------------------------------
250,000 Carroll County, MD, Public Improvement, Refunding
Revenue Bonds, 5.875%, 12/1/2006 AA- 261,142
------------------------------------------------------------------------
200,000 Carroll County, MD, Public Improvement, Refunding
Revenue Bonds, 6.00%, 12/1/2007 AA- 210,276
------------------------------------------------------------------------
125,000 Carroll County, MD, Public Improvement, Refunding
Revenue Bonds, 5.75%, 12/1/2005 AA- 125,561
------------------------------------------------------------------------
500,000 Cecil County, MD, Public Improvement GO Bonds, 5.10%, (FGIC Insured),
12/1/2007 AAA 459,815
------------------------------------------------------------------------
500,000 Charles County, MD, Public Improvement GO Bonds, 5.00%, 6/1/2009 AA- 437,010
------------------------------------------------------------------------
250,000 Cumberland, MD, Public Improvement Revenue Bonds, 4.90%, (Series
A)/(FGIC Insured), 5/1/2008 AAA 216,800
------------------------------------------------------------------------
300,000 Frederick County, MD, 5.55%, GO Bonds, 7/1/2007 AA- 294,597
------------------------------------------------------------------------
250,000 Frederick County, MD, 5.20%, GO Bonds, (Series B),
5/1/2008 Aa 232,900
------------------------------------------------------------------------
200,000 Frederick County, MD, Refunding Revenue Bonds, 6.125%, (FGIC Insured),
12/1/2006 AAA 205,540
------------------------------------------------------------------------
400,000 Frederick County, MD, Refunding Revenue Bonds, 5.65%,
7/1/2008 Aa 390,628
------------------------------------------------------------------------
700,000 Gaithersburg, MD, EDR Bonds, 5.10%, (Asbury Methodist Church), 1/1/2004 A 661,045
------------------------------------------------------------------------
500,000 Gaithersburg, MD, EDR Bonds, 5.00%, (Asbury Methodist Church), 1/1/2003 A 472,625
------------------------------------------------------------------------
250,000 Gaithersburg, MD, EDR Bonds, 5.20%, (Asbury Methodist Church), 1/1/2005 A 237,213
------------------------------------------------------------------------
250,000 Harford County, MD, GO Bonds, 6.25%, 12/1/2006 AAA 267,185
------------------------------------------------------------------------
100,000 Harford County, MD, Public Improvement Revenue Bonds, 5.50%, 9/1/2005 Aa 98,945
------------------------------------------------------------------------
355,000 Harford County, MD, GO Bonds, 5.70%, 9/1/2007 AAA 367,006
------------------------------------------------------------------------
395,000 Harford County, MD, GO Bonds, 5.70%, 9/1/2007
(Prerefunded) AA- 390,714
------------------------------------------------------------------------
1,000,000 Harford County, MD, Public Improvement, Refunding
Revenue Bonds, 4.80%, 12/1/2008 Aa 872,590
------------------------------------------------------------------------
500,000 Howard County, MD, GO Bonds, 5.25%, 8/15/2005 AA+ 483,485
------------------------------------------------------------------------
1,350,000 Howard County, MD, Public Improvement, Refunding
Revenue Bonds, 5.25%, (Series A), 8/15/2007 AA+ 1,271,524
------------------------------------------------------------------------
500,000 Howard County, MD, Public Improvement GO Bonds, 5.75%, (callable
5/15/2003), 5/15/2008 AA+ 492,085
------------------------------------------------------------------------
375,000 Laurel, MD, Refunding Revenue Bonds, 6.60%, (Series A)/ (MBIA Insured),
7/1/2003 AA+ 404,707
------------------------------------------------------------------------
120,000 Maryland State, Community Development Administration, SFM Revenue Bonds,
6.40%, 4/1/2004 Aa 121,703
------------------------------------------------------------------------
500,000 Maryland National Capital Parks & Planning Commission, GO Bonds, 6.10%,
7/1/2006, (callable 7/1/2004) AA 516,260
------------------------------------------------------------------------
100,000 Maryland State Housing & Community Development,
Revenue Bonds, 6.875%, (Series A)/(AMBAC Insured),
6/1/2006, (callable 6/1/2003) AAA 106,881
------------------------------------------------------------------------
200,000 Maryland State Department of Transportation, Revenue Bonds, 6.60%,
11/1/2000 AA 213,700
------------------------------------------------------------------------
500,000 Maryland State Health & Higher Education, Revenue Bonds,
5.30%, (Northwest Hospital Center)/(AMBAC Insured),
7/1/2006 (callable 7/1/2005) AAA 471,540
------------------------------------------------------------------------
600,000 Maryland State Health & Higher Education, Refunding
Revenue Bonds, 5.10%, (Suburban Hospital), 7/1/2007
(callable 7/1/2005) A 559,890
------------------------------------------------------------------------
500,000 Maryland State Health & Higher Education, Revenue Bonds, 5.35%, (Greater
Baltimore Medical Center)/(FGIC Insured), 7/1/2007 (callable 7/1/2005) AAA 467,040
------------------------------------------------------------------------
300,000 Maryland State Health & Higher Education, Revenue Bonds, 6.00%, (North
Arundel Hospital)/(MBIA Insured), 7/1/2007 (callable 7/1/2005) AAA 298,908
------------------------------------------------------------------------
500,000 Maryland State Health & Higher Education, Revenue Bonds, 5.10%,
(Suburban Hospital), 7/1/2008 (callable 7/1/2005) A-1 456,465
------------------------------------------------------------------------
1,000,000 Maryland State Health & Higher Education, Revenue Bonds,
5.30%, (Francis Scott Key Medical Center)/(FGIC Insured),
7/1/2008 (callable 7/1/2005) AAA 920,890
------------------------------------------------------------------------
500,000 Maryland State Health & Higher Education, Revenue Bonds, 5.10%,
(Suburban Hospital), 7/1/2009 (callable 7/1/2005) AAA 439,350
------------------------------------------------------------------------
150,000 Maryland Water Quality Revenue Financing Revolving Loan Fund, 6.00%,
(Series B), 9/1/2001 AA 156,007
------------------------------------------------------------------------
100,000 Maryland Water Quality Revenue Financing Revolving Loan Fund, 6.85%,
(Series A), 9/1/2004 AA 108,208
------------------------------------------------------------------------
750,000 Maryland State & Local Facility, GO Bonds, 5.50%, 2/1/2008 (callable
2/1/2007) AAA 723,840
------------------------------------------------------------------------
500,000 Maryland State, Revenue Bonds, 6.70%, (Series 2), 7/15/2001 AAA 542,995
------------------------------------------------------------------------
250,000 Maryland State, Revenue Bonds, 6.50%, (Series 1), 7/15/2002 AAA 269,998
------------------------------------------------------------------------
200,000 Maryland State, Revenue Bonds, 6.40%, (Series 3), 7/15/2003 (callable
7/15/2002) AAA 212,388
------------------------------------------------------------------------
200,000 Maryland State, Revenue Bonds, 6.00%, (Series 4), 10/15/2005 (callable
10/15/2004) AAA 207,944
------------------------------------------------------------------------
400,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, ETM, 6.625%, 7/1/2003 (callable 11/1/94) AAA 423,760
------------------------------------------------------------------------
500,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, 5.70%, 7/1/2005 A+ 499,945
------------------------------------------------------------------------
850,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, 5.80%, 7/1/2006 A+ 858,568
------------------------------------------------------------------------
300,000 Montgomery County, MD, Housing Opportunity Revenue Bonds, SFM, 6.15%,
7/1/2002 Aa 304,578
------------------------------------------------------------------------
115,000 Montgomery County, MD, Housing Opportunity Revenue
Bonds, Multi-Family Mortgage, 6.90%, 7/1/2004 (callable
7/1/2003) A 118,018
------------------------------------------------------------------------
100,000 Montgomery County, MD, Housing Opportunity Revenue Bonds, SFM, 6.10%,
7/1/2006 (callable 7/1/2004) Aa 101,530
------------------------------------------------------------------------
355,000 Montgomery County, MD, Housing Opportunity Revenue
Bonds, Consolidated SFM, 7.125%, (Series C), 7/1/2006
(callable 7/1/99) Aa 363,314
------------------------------------------------------------------------
250,000 Montgomery County, MD, Consolidated Public Improvement, Revenue Bonds,
6.90%, (Series A), 4/1/2000 AAA 271,355
------------------------------------------------------------------------
520,000 Montgomery County, MD, Public Improvement, Refunding GO Bonds, 5.75%,
(Series A), 7/1/2006 AAA 525,257
------------------------------------------------------------------------
700,000 Montgomery County, MD, Public Improvement, Refunding GO Bonds, 5.80%,
(Series A), 7/1/2007 AAA 704,319
------------------------------------------------------------------------
300,000 Montgomery County, MD, Public Improvement, Revenue Bonds, 6.125%,
(Series B), 10/1/2007 (Prerefunded) AAA 319,026
------------------------------------------------------------------------
1,000,000 Ocean City, MD, GO Bonds, 5.50%, (MBIA Insured),
3/15/2009 (callable 3/15/2006) AAA 941,950
------------------------------------------------------------------------
325,000 Ocean City, MD, Refunding GO Bonds, 6.00%, (MBIA Insured), 11/1/2003
(Prerefunded) AAA 340,265
------------------------------------------------------------------------
210,000 Ocean City, MD, Refunding GO Bonds, 6.10%, (MBIA Insured), 11/1/2004 AAA 222,833
------------------------------------------------------------------------
380,000 Prince Georges County, MD, Justice Center Parking Facility, Refunding
Revenue Bonds, 6.10%, 5/1/2001 AA- 394,345
------------------------------------------------------------------------
500,000 Prince Georges County, MD, Participation Certificates, 3.90%, (MBIA
Insured), 9/15/95 AAA 499,200
------------------------------------------------------------------------
750,000 Prince Georges County, MD, Participation Certificates, 5.90%, (MBIA
Insured), 9/15/2009, (callable 9/15/2006) AAA 731,805
------------------------------------------------------------------------
560,000 Prince Georges County, MD, GO Bonds, 5.95%, (Maryland Local Government
Trust), 8/1/2007 (callable 8/1/2004) Aa 562,010
------------------------------------------------------------------------
200,000 Prince Georges County, MD, Public Improvement, GO Bonds, 6.00%, (Series
A)/(MBIA Insured), 3/1/2008 (callable 3/1/2004) AAA 199,258
------------------------------------------------------------------------
500,000 Prince Georges County, MD, Stormwater Management, GO Bonds, 5.50%,
3/15/2008 (callable 3/15/2005) AA 472,270
------------------------------------------------------------------------
500,000 Prince Georges County, MD, Public Improvement, Refunding Revenue Bonds,
5.25%, 10/1/2008 AA- 457,280
------------------------------------------------------------------------
1,425,000 Rockville, MD, Refunding Revenue GO Bonds, 4.90%,
4/15/2007 AA+ 1,288,172
------------------------------------------------------------------------
150,000 St. Mary's College, 5.35%, (Series A)/(MBIA Insured),
9/1/2008 (callable 9/1/2005) AAA 140,877
------------------------------------------------------------------------
250,000 St. Mary's County, MD, Revenue Bonds, 4.60%, (St. Mary's Hospital),
9/1/2006 (callable 9/1/2005) A+ 219,710
------------------------------------------------------------------------
90,000 Talbot County, MD, Public Facility, GO Bonds, 6.60%,
5/1/2007 (callable 5/1/2003) A-1 94,190
------------------------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue Bonds, 6.40%,
(Series B), 4/1/2006 (Prerefunded) AAA 539,460
------------------------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue Bonds, 5.30%,
(Series A), 4/1/2007 (callable 4/1/2005) AA+ 472,040
------------------------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue Bonds, 6.30%,(Series
A), 2/1/2008 (callable 2/1/2003) AA+ 509,675
------------------------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue Bonds, 5.375%,
(Series A), 4/1/2008 (callable 4/1/2005) AA+ 469,595
------------------------------------------------------------------------
1,000,000 University MD, Auxiliary Facility & Tuition Revenue,
Refunding Revenue Bonds, 4.90%, (Series C), 10/1/2008
(callable 10/1/2005) AA+ 881,200
------------------------------------------------------------------------
1,000,000 University MD, Auxiliary Facility & Tuition Revenue, Refunding Revenue
Bonds, 5.00%, (Series C), 10/1/2009
(callable 10/1/2005) AA+ 875,010
------------------------------------------------------------------------
400,000 Washington County, MD, Public Improvement, Refunding Revenue Bonds,
5.25%, (FGIC Insured), 1/1/2007 (callable
1/1/2005) AAA 375,844
------------------------------------------------------------------------
300,000 Washington County, MD, Public Improvement, 5.75%,
1/1/2007 (callable 1/1/2005) A+ 300,660
------------------------------------------------------------------------
475,000 Washington County, MD, Public Improvement, 5.80%,
1/1/2008 (callable 1/1/2005) A+ 474,516
------------------------------------------------------------------------
500,000 Washington Suburban Sanitation District MD, Special
Assessment Revenue Bonds, 6.00%, 6/1/2005 (callable
6/1/2004) AA 513,225
------------------------------------------------------------------------
750,000 Washington Suburban Sanitation District MD, Revenue Bonds, 6.00%,
6/1/2005 (callable 6/1/2004) AA 772,657
------------------------------------------------------------------------
1,000,000 Washington Suburban Sanitation District MD, Refunding Revenue Bonds,
5.25%, (Series F), (FGIC Insured), 1/1/2007 AAA 939,610
------------------------------------------------------------------------
400,000 Washington Suburban Sanitation District MD, Revenue Bonds, 6.10%,
6/1/2007 (callable 6/1/2004) AA 408,448
------------------------------------------------------------------------
200,000 Washington Suburban Sanitation District MD, Revenue Bonds, 6.80%,
6/1/2007 (Prerefunded) AAA 219,236
------------------------------------------------------------------------
155,000 Washington Suburban Sanitation District MD, Refunding Revenue Bonds,
5.30%, (Series F)/(FGIC Insured), 1/1/2008 AAA 144,223
------------------------------------------------------------------------
</TABLE>
THE MARYLAND MUNICIPAL BOND FUND
(FORMERLY, MARYLAND MUNICIPAL BOND FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
PRINCIPAL RATING:
AMOUNT MOODY'S
OR SHARES OR S&P* VALUE
<C> <S> <C> <C>
- ------------ ------------------------------------------------------------------------ ---------- -------------
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------------------------
300,000 Washington Suburban Sanitation District MD, GO Bonds, 5.30%, 6/1/2008
(callable 6/1/2005) AA 273,540
------------------------------------------------------------------------
300,000 Washington Suburban Sanitation District MD, GO Bonds, 5.20%, 12/1/2008 AA 277,671
------------------------------------------------------------------------ -------------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $46,433,522) 44,759,171
------------------------------------------------------------------------ -------------
MUTUAL FUND SHARES--1.6%
- --------------------------------------------------------------------------------------
357,402 Goldman Sachs Institutional Tax Exempt 357,402
------------------------------------------------------------------------
357,403 Municipal Fund for Temporary Investment 357,403
------------------------------------------------------------------------ -------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 714,805
------------------------------------------------------------------------ -------------
TOTAL INVESTMENTS (IDENTIFIED COST $47,148,327) $ 45,473,976+
------------------------------------------------------------------------ -------------
</TABLE>
The cost of investments for federal tax purposes amounts to $47,148,327. The
net unrealized depreciation of investments on a federal tax basis amounts to
$1,674,351, which is comprised of $330,752 appreciation and $2,005,103
depreciation at September 30, 1994.
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
The following abbreviations are used in this portfolio:
AMBAC--American Municipal Bond Assurance Corp.
EDR--Economic Development Revenue
ETM(s)--Escrowed to Maturity
GO--General Obligation
FGIC--Financial Guaranty Insurance Company
MBIA--Municipal Bond Investors Assurance
SFM--Single Family Mortgage
Note: The categories of investments are shown as a percentage of net assets
($45,880,540) at September 30, 1994.
(See Notes which are an integral part of the Financial Statements)
THE TREASURY MONEY MARKET FUND
(FORMERLY, TREASURY MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- -------------- --------------------------------------------------------------------------------- --------------
U.S. TREASURY BILLS--3.1%
- -------------------------------------------------------------------------------------------------
$ 10,000,000 4.515%-4.585%, 11/17/94 $ 9,940,597
--------------------------------------------------------------------------------- --------------
U.S. TREASURY NOTES--44.9%
- -------------------------------------------------------------------------------------------------
146,000,000 3.875%-9.50%, 10/15/94-8/15/95 146,544,338
--------------------------------------------------------------------------------- --------------
*REPURCHASE AGREEMENTS--51.6%
- -------------------------------------------------------------------------------------------------
15,000,000 **First Boston Corp., 4.75%, dated 9/26/94, due 10/3/94 15,000,000
---------------------------------------------------------------------------------
70,000,000 Kidder, Peabody & Co., Inc., 4.80%, dated 9/30/94, due 10/3/94 70,000,000
---------------------------------------------------------------------------------
15,000,000 Nikko Securities Co. International, Inc. 4.85%, dated 9/30/94,
due 10/3/94 15,000,000
---------------------------------------------------------------------------------
68,316,704 Prudential Securities, Inc., 4.90%, dated 9/30/94, due 10/3/94 68,316,704
--------------------------------------------------------------------------------- --------------
TOTAL REPURCHASE AGREEMENTS 168,316,704
--------------------------------------------------------------------------------- --------------
TOTAL INVESTMENTS, AT AMORTIZED COST $ 324,801,639+
--------------------------------------------------------------------------------- --------------
</TABLE>
Also represents cost for federal tax purposes.
* Repurchase agreements are fully collateralized by U.S. Treasury obligations
based on market prices at the date of the portfolio.
** Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase
agreement.
Note: The categories of investments are shown as a percentage of net assets
($326,167,484) at September 30, 1994.
(See Notes which are an integral part of the Financial Statements)
THE MONEY MARKET FUND
(FORMERLY, MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- ---------------------------------------------------------------------------------- --------------
*COMMERCIAL PAPER--6.7%
- -------------------------------------------------------------------------------------------------
BANKING--3.4%
----------------------------------------------------------------------------------
$ 5,000,000 Bankers Trust NY Corp., 4.74%, 11/14/94 $ 4,971,033
---------------------------------------------------------------------------------- --------------
FINANCE-CONSUMER LOAN--2.0%
----------------------------------------------------------------------------------
3,000,000 Transamerica Finance Corp., 4.89%, 2/14/95 2,944,580
---------------------------------------------------------------------------------- --------------
FINANCE-RECEIVABLES--1.3%
----------------------------------------------------------------------------------
2,000,000 Xerox Credit Corp., 5.35%, 6/9/95 1,925,397
---------------------------------------------------------------------------------- --------------
TOTAL COMMERCIAL PAPER 9,841,010
---------------------------------------------------------------------------------- --------------
CORPORATE NOTES--42.0%
- -------------------------------------------------------------------------------------------------
AUTO/TRUCK MANUFACTURERS--0.9%
----------------------------------------------------------------------------------
1,350,000 Ford Motor Co., Medium Term Note, 5.00%, 3/1/95 1,351,031
---------------------------------------------------------------------------------- --------------
BANKING-FINANCE--5.4%
----------------------------------------------------------------------------------
1,000,000 Associates Corp. of North America, 8.80%, 1/14/95 1,011,788
----------------------------------------------------------------------------------
500,000 Bankers Trust NY Corp., 5.25%, 1/16/95 499,785
----------------------------------------------------------------------------------
2,000,000 Republic National Bank, 5.75%, 2/1/95 2,004,798
----------------------------------------------------------------------------------
1,000,000 Security Pacific Corp., 6.875%, 2/15/95 1,010,285
----------------------------------------------------------------------------------
1,000,000 Security Pacific Corp., Medium Term Note, 6.80%, 12/23/94 1,006,875
----------------------------------------------------------------------------------
2,500,000 Security Pacific Corp., Medium Term Note, 7.00%, 12/15/94 2,516,628
---------------------------------------------------------------------------------- --------------
Total 8,050,159
---------------------------------------------------------------------------------- --------------
FINANCE--2.7%
----------------------------------------------------------------------------------
1,000,000 PNC Funding Corp., 3.55%, 1/20/95 999,843
----------------------------------------------------------------------------------
3,000,000 PNC Funding Corp., 4.875%, 5/15/95 2,989,802
---------------------------------------------------------------------------------- --------------
Total 3,989,645
---------------------------------------------------------------------------------- --------------
FINANCE-AUTOMOTIVE--3.5%
----------------------------------------------------------------------------------
1,100,000 Ford Motor Credit Co., Medium Term Note, 5.55%, 12/14/94 1,103,503
----------------------------------------------------------------------------------
2,000,000 Ford Motor Credit Co., Medium Term Note, 5.50%, 12/20/94 2,007,739
----------------------------------------------------------------------------------
2,000,000 Ford Motor Credit Co., 9.30%, 3/15/95 2,036,058
---------------------------------------------------------------------------------- --------------
Total 5,147,300
---------------------------------------------------------------------------------- --------------
FINANCE-CONSUMER LOAN--3.1%
----------------------------------------------------------------------------------
4,575,000 Commercial Credit Group, Inc., 8.375%, 4/15/95 4,646,595
---------------------------------------------------------------------------------- --------------
FINANCE-RECEIVABLES--0.3%
----------------------------------------------------------------------------------
500,000 Xerox Credit Corp., Medium Term Note, 5.375%, 7/15/95 498,498
---------------------------------------------------------------------------------- --------------
FINANCIAL SERVICES--9.9%
----------------------------------------------------------------------------------
1,000,000 American Express Co., 5.95%, 1/27/95 1,002,131
----------------------------------------------------------------------------------
2,500,000 American General Finance Corp., 6.25%, 4/15/95 2,510,914
----------------------------------------------------------------------------------
4,000,000 American General Finance Corp., 8.10%, 8/15/95 4,071,619
----------------------------------------------------------------------------------
2,150,000 Avco Financial Services, Inc., 8.875%, 1/15/95 2,176,329
----------------------------------------------------------------------------------
1,000,000 CIT Group Holdings, Inc., 8.60%, 12/1/94 1,008,149
----------------------------------------------------------------------------------
3,800,000 General Electric Capital Corp., 8.25%, 1/14/95 3,841,699
---------------------------------------------------------------------------------- --------------
Total 14,610,841
---------------------------------------------------------------------------------- --------------
FOOD--0.7%
----------------------------------------------------------------------------------
1,000,000 General Mills, Inc., 9.05%, 10/15/95 1,029,429
---------------------------------------------------------------------------------- --------------
OIL/GAS--3.8%
----------------------------------------------------------------------------------
2,100,000 Atlantic Richfield Co., 10.375%, 7/15/95 2,176,614
----------------------------------------------------------------------------------
415,000 Shell Oil Co., 7.00%, 9/15/95 418,337
----------------------------------------------------------------------------------
3,000,000 Texaco Capital, Inc., 9.00%, 10/1/94 3,000,000
---------------------------------------------------------------------------------- --------------
Total 5,594,951
---------------------------------------------------------------------------------- --------------
PAPER/PRODUCTS--0.7%
----------------------------------------------------------------------------------
1,000,000 Kimberly-Clark Corp., 9.75%, 6/15/95 1,027,911
---------------------------------------------------------------------------------- --------------
RESTAURANT/FOOD SERVICE--2.8%
----------------------------------------------------------------------------------
1,000,000 PepsiCo, Inc., 5.875%, 12/15/94 1,004,344
----------------------------------------------------------------------------------
1,000,000 PepsiCo, Inc., 5.625%, 7/1/95 1,000,099
----------------------------------------------------------------------------------
2,000,000 Phillip Morris Cos., Inc., 9.40%, 10/1/95 2,063,647
---------------------------------------------------------------------------------- --------------
Total 4,068,090
---------------------------------------------------------------------------------- --------------
SECURITIES--7.5%
----------------------------------------------------------------------------------
3,000,000 Goldman, Sachs & Co., 5.11%, 4/7/95 3,000,000
----------------------------------------------------------------------------------
6,000,000 Lehman Brothers, Inc., 12.50%, 10/15/94 6,019,569
----------------------------------------------------------------------------------
2,000,000 Merrill Lynch, Pierce, Fenner & Smith, Inc., 5.71%, 8/30/95 1,998,014
---------------------------------------------------------------------------------- --------------
Total 11,017,583
---------------------------------------------------------------------------------- --------------
UTILITIES--0.7%
----------------------------------------------------------------------------------
1,000,000 Virginia Electric & Power Co., 6.375%, 3/1/95 1,003,744
---------------------------------------------------------------------------------- --------------
TOTAL CORPORATE NOTES 62,035,777
---------------------------------------------------------------------------------- --------------
**GOVERNMENT AGENCIES--41.6%
- -------------------------------------------------------------------------------------------------
2,000,000 Federal Farm Credit Bank, 4.775%, 11/26/94 1,993,275
----------------------------------------------------------------------------------
2,000,000 Federal Home Loan Bank, 4.72%, 12/8/94 1,993,547
----------------------------------------------------------------------------------
2,000,000 Federal National Mortgage Association, 4.90%, 10/4/94 2,001,336
----------------------------------------------------------------------------------
55,450,000 Student Loan Marketing Association, 5.11%-5.495%,
10/4/94-10/7/94 55,517,575
---------------------------------------------------------------------------------- --------------
TOTAL GOVERNMENT AGENCIES 61,505,733
---------------------------------------------------------------------------------- --------------
***REPURCHASE AGREEMENT--9.1%
- -------------------------------------------------------------------------------------------------
$ 13,416,046 Prudential Securities, Inc., 4.90%, dated 9/30/94, due 10/3/94 $ 13,416,046
---------------------------------------------------------------------------------- --------------
TOTAL INVESTMENTS, AT AMORTIZED COST $ 146,798,566+
---------------------------------------------------------------------------------- --------------
--------------
</TABLE>
Also represents cost for federal tax purposes.
* Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
** Current rate and next reset date shown.
*** The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
Note: The categories of investments are shown as a percentage of net assets
($147,680,572) at September 30, 1994.
(See Notes which are an integral part of the Financial Statements)
THE TAX-FREE MONEY MARKET FUND
(FORMERLY, TAX-FREE MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------ ------------------------------------------------------------------------ ---------- -------------
SHORT-TERM MUNICIPAL SECURITIES--98.4%
- --------------------------------------------------------------------------------------
CALIFORNIA--4.5%
------------------------------------------------------------------------
$ 1,000,000 California State, 3.75%, 12/21/94 SP1 $ 1,001,190
------------------------------------------------------------------------ -------------
FLORIDA--9.3%
------------------------------------------------------------------------
1,000,000 St. John's County, FL, HFA Weekly VRDNs (General Electric Capital
Corporation LOC) AAA 1,000,000
------------------------------------------------------------------------
1,050,000 Volusia County, FL, HFA Weekly VRDNs (Sun Pointe Apts.)/(Citibank LOC) A-1 1,050,000
------------------------------------------------------------------------ -------------
Total 2,050,000
------------------------------------------------------------------------ -------------
GEORGIA--9.9%
------------------------------------------------------------------------
1,170,000 DeKalb County, GA, Development Authority IDR Weekly VRDNs (Weyerhauser
Co.)/(Wachovia Bank & Trust LOC) A-1+ 1,170,000
------------------------------------------------------------------------
1,000,000 Georgia State, 4.90%, GO Bond, 8/1/95 AA+ 1,009,711
------------------------------------------------------------------------ -------------
Total 2,179,711
------------------------------------------------------------------------ -------------
KANSAS--4.5%
------------------------------------------------------------------------
1,000,000 Wichita, KS, 4.25%, 3/2/95 SP1+ 1,002,831
------------------------------------------------------------------------ -------------
MARYLAND--4.6%
------------------------------------------------------------------------
1,000,000 Prince Georges County, MD, 7.00%, GO Bond, 1/15/95 AA- 1,010,048
------------------------------------------------------------------------ -------------
MINNESOTA--8.2%
------------------------------------------------------------------------
1,800,000 Becker, MN, 3.20%, 10/26/94 (Northern States Power Co.) AA3 1,800,000
------------------------------------------------------------------------ -------------
NEW HAMPSHIRE--4.6%
------------------------------------------------------------------------
1,000,000 Rockingham County, NH, 4.00%, GO Bond, 12/30/94 NR 1,002,450
------------------------------------------------------------------------ -------------
NORTH CAROLINA--4.8%
------------------------------------------------------------------------
1,000,000 North Carolina Eastern Municipal Power, 10.00%, 1/1/95 (Prerefunded) AAA 1,046,277
------------------------------------------------------------------------ -------------
OHIO--4.6%
------------------------------------------------------------------------
1,000,000 Montgomery County, OH, 4.00%, 4/27/95 NR 1,002,293
------------------------------------------------------------------------ -------------
PENNSYLVANIA--5.0%
------------------------------------------------------------------------
1,100,000 Allegheny County, PA, Weekly VRDNs (National Westminster LOC) AA 1,100,000
------------------------------------------------------------------------ -------------
SOUTH CAROLINA--15.7%
------------------------------------------------------------------------
1,000,000 Anderson County, SC, IDR Weekly VRDNs (Belton Industries
Inc.)/(Nationsbank of North Carolina LOC) NR 1,000,000
------------------------------------------------------------------------
1,000,000 Dorchester County, SC, Pollution Control Facilities Revenue Weekly VRDNs
(Wachovia Bank of Georgia LOC) Aa2 1,000,000
------------------------------------------------------------------------
400,000 Laurens County, SC, IDR Weekly VRDNs (Wachovia Bank & Trust LOC) NR 400,000
------------------------------------------------------------------------
1,050,000 South Carolina State, HFA Weekly VRDNs (Waverly Place)/ (Nationsbank of
North Carolina LOC) NR 1,050,000
------------------------------------------------------------------------ -------------
Total 3,450,000
------------------------------------------------------------------------ -------------
TENNESSEE--4.5%
------------------------------------------------------------------------
1,000,000 Greenville, TN, IDB Weekly VRDNs (PNC Bank LOC) AA3 1,000,000
------------------------------------------------------------------------ -------------
TEXAS--4.7%
------------------------------------------------------------------------
1,000,000 San Antonio, TX, Electric & Gas Revenue, 6.875%, 2/1/95 (Prerefunded) AA 1,026,246
------------------------------------------------------------------------ -------------
VIRGINIA--8.9%
------------------------------------------------------------------------
447,000 Hampton, VA, Redevelopment & Housing Authority Weekly VRDNs (Chase
Hampton Assoc.)/(Nationsbank of Virginia LOC) NR 447,000
------------------------------------------------------------------------
500,000 Spotsylvania County, VA, IDA Weekly VRDNs (Chancellors
Village)/(Nationsbank LOC) NR 500,000
------------------------------------------------------------------------
1,000,000 Virginia State, HDA, 3.90%, 5/10/95 AA+ 1,000,583
------------------------------------------------------------------------ -------------
Total 1,947,583
------------------------------------------------------------------------ -------------
WISCONSIN--4.6%
------------------------------------------------------------------------
1,000,000 Madison, WI, Metropolitan School District, 4.00%, 2/22/95 NR 1,001,918
------------------------------------------------------------------------ -------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES 21,620,547
------------------------------------------------------------------------ -------------
MUTUAL FUND SHARES--8.5%
- --------------------------------------------------------------------------------------
934,252 Goldman Sachs Institutional Tax Exempt 934,252
------------------------------------------------------------------------
934,252 Municipal Fund for Temporary Investment 934,252
------------------------------------------------------------------------ -------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 1,868,504
------------------------------------------------------------------------ -------------
TOTAL INVESTMENTS, AT AMORTIZED COST $ 23,489,051+
------------------------------------------------------------------------ -------------
</TABLE>
+ Also represents cost for federal tax purposes.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings. Current credit ratings are unaudited.
Note: The categories of investments are shown as a percentage of net assets
($21,966,640) at September 30, 1994.
The following abbreviations are used throughout this portfolio:
<TABLE>
<S> <C>
GO--General Obligation. IDB--Industrial Development Board.
HDA--Housing Development Authority. IDR--Industrial Development Revenue.
HFA--Housing Finance Authority. LOC--Letter(s) of Credit.
IDA--Industrial Development Authority. VRDNs--Variable Rate Demand Notes.
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE MEDALIST FUNDS
(FORMERLY, SIGNET SELECT FUNDS)
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE U.S. GOVERNMENT THE VIRGINIA THE MARYLAND
SECURITIES FUND THE STOCK FUND MUNICIPAL BOND FUND MUNICIPAL BOND FUND
(FORMERLY, U.S. (FORMERLY, VALUE (FORMERLY, VIRGINIA (FORMERLY, MARYLAND
GOVERNMENT INCOME FUND) EQUITY FUND) MUNICIPAL BOND FUND) MUNICIPAL BOND FUND)
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities $216,831,635 $ 97,200,334 $107,518,553 $ 45,473,976
Cash -- 13,888 -- --
Dividends and Interest
receivable 3,532,480 106,184 1,775,184 741,768
Receivable for Fund
shares sold 359,714 205,577 63,435 16,500
Deferred expenses 6,640 6,527 7,227 4,493
- -------------------------------------------------------------------------------------------------------------------------
Total assets 220,730,469 97,532,510 109,364,399 46,236,737
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Fund shares
redeemed 384,902 334,538 201,616 217,537
Dividends payable 688,262 -- 185,529 68,977
Accrued expenses 115,091 84,979 106,600 69,683
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,188,255 419,517 493,745 356,197
- -------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $219,542,214 $ 97,112,993 $108,870,654 $ 45,880,540
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid-in capital $238,332,359 $ 93,775,042 $112,980,876 $ 47,513,193
Net unrealized apprecia-
tion (depreciation) of
investments (9,064,506) 1,011,172 (3,937,393) (1,674,351)
Accumulated net realized
gain (loss) on
investments (6,830,353) 2,181,712 -- 41,698
Accumulated distributions
in excess of net
investment income -- -- (1,096) --
Accumulated distributions
in excess of net realized
gain (loss) on
investments (2,897,103) -- (171,733) --
Undistributed net
investment income 1,817 145,067 -- --
- -------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $219,542,214 $ 97,112,993 $108,870,654 $ 45,880,540
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, and
Offering Price Per Share:
(net assets/shares
outstanding)
Trust Shares $9.83 $11.80 $10.26 $10.17
Investment Shares $9.83 $11.80 $10.26 $10.17
- -------------------------------------------------------------------------------------------------------------------------
Redemption Proceeds
Per Share:
Investment Shares* $9.63** $11.56** $10.05** $9.97**
- -------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Trust Shares 10,891,884 5,961,603 3,330,661 1,110,700
Investment Shares 11,434,415 2,265,177 7,282,825 3,398,913
- -------------------------------------------------------------------------------------------------------------------------
Total Shares Outstanding 22,326,299 8,226,780 10,613,486 4,509,613
- -------------------------------------------------------------------------------------------------------------------------
Investments, at
identified cost $225,896,141 $96,189,162 $111,455,946 $47,148,327
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*See "Redeeming Shares" in the prospectus.
**Computation of redemption proceeds: 98/100 of net asset value.
(See Notes which are an integral part of the Financial Statements)
THE MEDALIST FUNDS
(FORMERLY, SIGNET SELECT FUNDS)
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE TREASURY MONEY MARKET THE TAX-FREE MONEY MARKET
FUND THE MONEY MARKET FUND FUND
(FORMERLY, TREASURY (FORMERLY, MONEY MARKET (FORMERLY, TAX-FREE
MONEY MARKET FUND) FUND) MONEY MARKET FUND)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Repurchase agreements, at
amortized cost $ 168,316,704 $ 13,416,046 $ --
Investments in other
securities 156,484,935 133,382,520 23,489,051
Interest receivable 2,745,409 1,744,751 201,034
Deferred expenses 13,397 9,189 --
- ------------------------------------------------------------------------------------------------------------------
Total assets 327,560,445 148,552,506 23,690,085
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investments
purchased -- 419,789 1,670,000
Dividends payable 1,215,171 387,800 44,324
Accrued expenses 177,790 64,345 9,121
- ------------------------------------------------------------------------------------------------------------------
Total liabilities 1,392,961 871,934 1,723,445
- ------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $ 326,167,484 $ 147,680,572 $ 21,966,640
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, Offering Price,
and Redemption
Proceeds Per Share:
(net assets/shares
outstanding)
Trust Shares $1.00 $1.00 $ --
Investment Shares $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Trust Shares 304,284,576 132,445,041 --
Investment Shares 21,882,908 15,235,531 21,966,640
- ------------------------------------------------------------------------------------------------------------------
Total Shares Outstanding 326,167,484 147,680,572 21,966,640
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE MEDALIST FUNDS
(FORMERLY, SIGNET SELECT FUNDS)
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE U.S. GOVERNMENT THE VIRGINIA THE MARYLAND
SECURITIES FUND THE STOCK FUND MUNICIPAL BOND FUND MUNICIPAL BOND FUND
(FORMERLY, U.S. (FORMERLY, VALUE (FORMERLY, VIRGINIA (FORMERLY, MARYLAND
GOVERNMENT INCOME FUND) EQUITY FUND) MUNICIPAL BOND FUND) MUNICIPAL BOND FUND)
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income $16,016,447* $ 257,160 $6,180,947 $2,554,147
Dividend Income -- 2,199,603 -- --
- -------------------------------------------------------------------------------------------------------------------------
Total investment income 16,016,447 2,456,763 6,180,947 2,554,147
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 1,734,083 703,937 861,187 355,431
Trustees' fees 3,255 2,137 2,791 1,996
Administrative personnel
and services fees 269,932 109,075 133,956 55,254
Custodian fees 69,145 53,309 44,772 30,852
Transfer and dividend
disbursing agent fees
and expenses 155,601 69,142 79,347 65,246
Fund share registration
costs 42,287 32,658 54,189 41,074
Auditing fees 26,179 20,867 20,321 18,912
Legal fees 4,354 5,471 6,466 5,943
Printing and postage 30,871 31,518 35,421 28,548
Portfolio accounting fees 75,996 61,589 95,919 64,338
Insurance premiums 9,278 4,790 7,388 6,612
Distribution services fees 299,048 59,836 190,877 89,447
Miscellaneous 16,647 8,687 9,761 3,697
- -------------------------------------------------------------------------------------------------------------------------
Total expenses 2,736,676 1,163,016 1,542,395 767,350
Deduct--
Waiver of investment
advisory fee 734,744 214,366 314,920 241,790
- -------------------------------------------------------------------------------------------------------------------------
Net expenses 2,001,932 948,650 1,227,475 525,560
- -------------------------------------------------------------------------------------------------------------------------
Net investment income 14,014,515 1,508,113 4,953,472 2,028,587
- -------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on
investment transactions
(identified cost basis) (7,740,156) 2,244,847 (66,254) 112,304
Net change in unrealized
appreciation
(depreciation) of
investments (13,608,853) (4,568,297) (9,882,836) (4,417,809)
- -------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments (21,349,009) (2,323,450) (9,949,090) (4,305,505)
- -------------------------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations ($7,334,494) ($815,337) ($4,995,618) ($2,276,918)
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Net of interest expense of $433,056.
(See Notes which are an integral part of the Financial Statements)
THE MEDALIST FUNDS
(FORMERLY, SIGNET SELECT FUNDS)
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE TREASURY MONEY MARKET THE TAX-FREE MONEY
FUND THE MONEY MARKET FUND MARKET FUND*
(FORMERLY, TREASURY (FORMERLY, MONEY MARKET (FORMERLY, TAX-FREE
MONEY MARKET FUND) FUND) MONEY MARKET FUND)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income $ 10,755,740 $ 5,407,210 $ 126,835
- ------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 1,388,302 709,679 21,033
Trustees' fees 2,499 3,074 --
Administrative personnel
and services fees 319,857 165,549 8,904
Custodian fees 82,687 49,374 3,846
Transfer and dividend disbursing
agent fees and expenses 58,171 54,711 54
Fund share registration
costs 135,843 26,451 --
Auditing fees 28,061 26,028 --
Legal fees 3,904 7,849 --
Printing and postage 28,085 23,803 --
Portfolio accounting fees 64,142 50,948 10,272
Insurance premiums 8,182 8,277 --
Distribution services fee 52,221 26,424 --
Miscellaneous 14,022 9,790 600
- ------------------------------------------------------------------------------------------------------------------
Total expenses 2,185,976 1,161,957 44,709
Deduct--
Waiver of investment
advisory fee 508,090 354,839 19,388
Reimbursement of other
operating expenses -- -- 10,024
- ------------------------------------------------------------------------------------------------------------------
Net expenses 1,677,886 807,118 15,297
- ------------------------------------------------------------------------------------------------------------------
Net investment income $9,077,854 $ 4,600,092 $ 111,538
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
*For the period from July 27, 1994 (date of initial public investment) to
September 30, 1994.
(See Notes which are an integral part of the Financial Statements)
THE MEDALIST FUNDS
(FORMERLY, SIGNET SELECT FUNDS)
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE U.S. GOVERNMENT
SECURITIES FUND THE VIRGINIA
(FORMERLY, U.S. THE STOCK FUND MUNICIPAL BOND FUND
GOVERNMENT (FORMERLY, VALUE (FORMERLY, VIRGINIA
INCOME FUND) EQUITY FUND) MUNICIPAL BOND FUND)
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1994 1993 1994 1993 1994 1993
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $14,014,515 $11,055,396 $ 1,508,113 $ 1,402,571 $ 4,953,472 $ 3,289,022
Net realized gain (loss) on
investment transactions (7,740,156) 910,697 2,244,847 1,411,849 (66,254) 761,679
Net change in unrealized
appreciation (depreciation) of
investments (13,608,853) 679,105 (4,568,297) 765,999 (9,882,836) 5,201,265
- ------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations (7,334,494) 12,645,198 (815,337) 3,580,419 (4,995,618) 9,251,966
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to shareholders from net
investment income:
Trust Shares (6,839,985) (6,300,778) (1,098,902) (1,243,902) (1,721,741) (1,422,592)
Investment Shares (7,032,638) (4,754,618) (335,387) (178,911) (3,231,731) (1,866,430)
Distributions to shareholders from
net realized gain on investment
transactions:
Trust Shares -- (758,969) (1,031,282) (716,366) (218,630) (121,101)
Investment Shares -- (462,035) (352,939) (43,355) (476,809) (141,494)
Distributions to shareholders in
excess of net investment income:
Trust Shares -- (68,204) -- -- (345) --
Investment Shares -- (71,871) -- -- (751) --
Distributions to shareholders in
excess of net realized gain on
investment transactions:
Trust Shares (1,411,493) -- -- -- (53,989) --
Investment Shares (1,485,610) -- -- -- (117,744) --
- ------------------------------------------------------------------------------------------------------------------
Change in net assets from
distributions to shareholders (16,769,726) (12,416,475) (2,818,510) (2,182,534) (5,821,740) (3,551,617)
- ------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS:
Proceeds from sale of shares 67,634,894 118,721,743 60,490,244 43,737,472 38,805,692 68,080,504
Net asset value of shares issued to
shareholders in payment of
dividends declared 6,803,377 4,462,449 1,651,823 1,236,878 3,165,013 1,796,047
Cost of shares redeemed (62,312,515) (27,775,953) (45,926,962) (13,711,227) (26,979,033) (12,615,672)
- ------------------------------------------------------------------------------------------------------------------
Change in net assets from Fund
share transactions 12,125,756 95,408,239 16,215,105 31,263,123 14,991,672 57,260,879
- ------------------------------------------------------------------------------------------------------------------
Change in net assets (11,978,464) 95,636,962 12,581,258 32,661,008 4,174,314 62,961,228
NET ASSETS:
Beginning of period 231,520,678 135,883,716 84,531,735 51,870,727 104,696,340 41,735,112
- ------------------------------------------------------------------------------------------------------------------
End of period $219,542,214 $231,520,678 $97,112,993 $84,531,735 $108,870,654 $104,696,340
- ------------------------------------------------------------------------------------------------------------------
Undistributed net investment income
included in net assets at
end of period $ 1,817 $ -- $ 145,067 $ 71,243 $ -- $ --
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE MEDALIST FUNDS
(FORMERLY, SIGNET SELECT FUNDS)
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE MARYLAND THE TREASURY MONEY
MUNICIPAL BOND FUND MARKET FUND
(FORMERLY, MARYLAND (FORMERLY, TREASURY
MUNICIPAL BOND FUND) MONEY MARKET FUND)
----------------------------------------------------------------
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,028,587 $ 1,414,559 $ 9,077,854 $ 4,770,981
Net realized gain (loss) on
investment transactions 112,304 367,211 -- --
Net change in unrealized appreciation
(depreciation) of investments (4,417,809) 2,363,638 -- --
- ------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from
operations (2,276,918) 4,145,408 9,077,854 4,770,981
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to shareholders from net
investment income:
Trust Shares (515,534) (371,280) (8,479,888) (4,372,212)
Investment Shares (1,513,053) (1,043,279) (597,966) (398,769)
Distributions to shareholders from net realized
gain on
investment transactions:
Trust Shares (108,573) (1,200) -- --
Investment Shares (329,347) (3,190) -- --
- ------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions to
shareholders (2,466,507) (1,418,949) (9,077,854) (4,770,981)
- ------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS:
Proceeds from sale of shares 14,847,555 25,050,317 1,070,823,360 370,185,340
Net asset value of shares issued to shareholders
in payment of
dividends declared 1,526,375 928,241 598,479 396,094
Cost of shares redeemed (11,670,689) (2,840,951) (918,557,011) (373,689,837)
- ------------------------------------------------------------------------------------------------------------------
Change in net assets from Fund share
transactions 4,703,241 23,137,607 152,864,828 (3,108,403)
- ------------------------------------------------------------------------------------------------------------------
Change in net assets (40,184) 25,864,066 152,864,828 (3,108,403)
NET ASSETS:
Beginning of period 45,920,724 20,056,658 173,302,656 176,411,059
- ------------------------------------------------------------------------------------------------------------------
End of period $45,880,540 $ 45,920,724 $326,167,484 $173,302,656
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE MEDALIST FUNDS
(FORMERLY, SIGNET SELECT FUNDS)
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE TAX-FREE
MONEY
THE MONEY MARKET MARKET FUND
FUND (FORMERLY, MONEY MARKET (FORMERLY, TAX-FREE
FUND) MONEY MARKET FUND)
-----------------------------------------------------------
YEAR ENDED PERIOD ENDED
SEPTEMBER 30, SEPTEMBER 30,
1994 1993 1994*
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 4,600,092 $ 4,118,393 $ 111,538
- -------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations 4,600,092 4,118,393 111,538
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to shareholders from net investment income:
Trust Shares (4,275,163) (3,879,216) --
Investment Shares (324,929) (239,177) (111,538)
- -------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions to
shareholders (4,600,092) (4,118,393) (111,538)
- -------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS:
Proceeds from sale of shares 301,706,501 325,689,812 32,866,117
Net asset value of shares issued to shareholders in
payment of dividends declared 318,532 239,477 17,108
Cost of shares redeemed (298,646,861) (324,046,130) (10,916,585)
- -------------------------------------------------------------------------------------------------------------------
Change in net assets from Fund share
transactions 3,378,172 1,883,159 21,966,640
- -------------------------------------------------------------------------------------------------------------------
Change in net assets 3,378,172 1,883,159 21,966,640
NET ASSETS:
Beginning of period 144,302,400 142,419,241 --
- -------------------------------------------------------------------------------------------------------------------
End of period $147,680,572 $144,302,400 $21,966,640
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
*For the period from July 27, 1994 (date of initial public investment) to
September 30, 1994.
(See Notes which are an integral part of the Financial Statements)
THE U.S. GOVERNMENT SECURITIES FUND
(FORMERLY, U.S. GOVERNMENT INCOME FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
INVESTMENT SHARES 1994 1993 1992 1991*
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.90 $ 10.95 $ 10.54 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.61 0.66 0.75 0.78
Net realized and unrealized gain (loss) on investments (0.94) 0.03 0.50 0.54
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.33) 0.69 1.25 1.32
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.61) (0.66)(d) (0.75) (0.78)
Distributions to shareholders from net realized gain on investment
transactions -- (0.08) (0.09) --
Distributions to shareholders in excess of net realized gain on
investment transactions (0.13)(c) -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (0.74) (0.74) (0.84) (0.78)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.83 $ 10.90 $ 10.95 $ 10.54
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** (3.36%) 6.82% 12.42% 14.00%
- -----------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.99% 0.77% 0.52% 0.64%(a)
Net investment income 5.94% 5.91% 7.01% 8.03%(a)
Expense waiver/reimbursement (b) 0.32% 0.43% 0.65% 0.93%(a)
- -----------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $112,439 $119,187 $40,274 $10
Portfolio turnover rate 227% 154% 201% 101%
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30,
TRUST SHARES 1994 1993 1992 1991*
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.90 $ 10.95 $ 10.54 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.63 0.67 0.75 0.78
Net realized and unrealized gain (loss) on investments (0.94) 0.03 0.50 0.54
- -----------------------------------------------------------------------------------------------------------------
Total from investment operations (0.31) 0.70 1.25 1.32
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.63) (0.67)(d) (0.75) (0.78)
Distributions to shareholders from net realized gain on investment
transactions -- (0.08) (0.09) --
Distributions to shareholders in excess of net realized gain on
investment transactions (0.13)(c) -- -- --
- -----------------------------------------------------------------------------------------------------------------
Total distributions (0.76) (0.75) (0.84) (0.78)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.83 $ 10.90 $ 10.95 $ 10.54
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN** (3.12%) 6.94% 12.42% 14.00%
- -----------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.74% 0.63% 0.52% 0.64%(a)
Net investment income 6.19% 6.17% 7.01% 8.03%(a)
Expense waiver/reimbursement (b) 0.32% 0.43% 0.65% 0.93%(a)
- -----------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $107,103 $112,334 $95,610 $27,565
Portfolio turnover rate 227% 154% 201% 101%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 16, 1990 (date of initial
public investment) to September 30, 1991.
** Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These
distributions do not represent a return of capital for federal income tax
purposes.
(d) Amount includes distributions in excess of net investment income of $0.007
per share.
(See Notes which are an integral part of the Financial Statements)
THE STOCK FUND
(FORMERLY, VALUE EQUITY FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
<S> <C> <C> <C> <C>
INVESTMENT SHARES 1994 1993 1992 1991*
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.39 $ 12.02 $ 11.86 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.17 0.24 0.26 0.32
Net realized and unrealized gain (loss) on investments (0.39) 0.54 0.46 1.85
- ------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.22) 0.78 0.72 2.17
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.17) (0.25) (0.25) (0.31)
Distributions to shareholders from net realized gain on investment
transactions (0.20) (0.16) (0.31) --
- ------------------------------------------------------------------------------------------------------------------
Total distributions (0.37) (0.41) (0.56) (0.31)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.80 $ 12.39 $ 12.02 $ 11.86
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** (1.72%) 6.31% 6.31% 22.68%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 1.20% 0.87% 0.95% 0.80%(a)
Net investment income 1.40% 1.81% 2.25% 3.05%(a)
Expense waiver/reimbursement (b) 0.23% 0.55% 0.34% 0.38%(a)
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted)
$26,739 $18,691 $2,290 $488
Portfolio turnover rate 205% 67% 38% 84%
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30,
TRUST SHARES 1994 1993 1992 1991*
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.39 $ 12.02 $ 11.86 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.20 0.28 0.26 0.32
Net realized and unrealized gain (loss) on investments (0.40) 0.51 0.46 1.85
- ------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.20) 0.79 0.72 2.17
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.19) (0.26) (0.25) (0.31)
Distributions to shareholders from net realized gain on investment
transactions (0.20) (0.16) (0.31) --
- ------------------------------------------------------------------------------------------------------------------
Total distributions (0.39) (0.42) (0.56) (0.31)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.80 $ 12.39 $ 12.02 $ 11.86
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** (1.50%) 6.42% 6.31% 22.68%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.95% 0.66% 0.95% 0.80%(a)
Net investment income 1.68% 2.09% 2.25% 3.05%(a)
Expense waiver/reimbursement (b) 0.23% 0.55% 0.34% 0.38%(a)
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $70,374 $65,841 $49,58 $37,032
Portfolio turnover rate 205% 67% 38% 84%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 16, 1990 (date of initial
public investment) to
September 30, 1991.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
THE VIRGINIA MUNICIPAL BOND FUND
(FORMERLY, VIRGINIA MUNICIPAL BOND FUND)
]FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
<S> <C> <C> <C> <C>
INVESTMENT SHARES 1994 1993 1992 1991*
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.26 $ 10.46 $ 10.18 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.45 0.51 0.54 0.57
Net realized and unrealized gain (loss) on investments (0.92) 0.89 0.29 0.18
- ------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.47) 1.40 0.83 0.75
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.45)(d) (0.51) (0.54) (0.57)
Distributions to shareholders from net realized gain on investment
transactions (0.06) (0.09) (0.01) --
Distributions to shareholders in excess of net realized gain on
investment transactions (0.02)(c) -- -- --
- ------------------------------------------------------------------------------------------------------------------
Total distributions (0.53) (0.60) (0.55) (0.57)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.26 $ 11.26 $ 10.46 $ 10.18
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** (4.25%) 13.49% 8.51% 7.64%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 1.15% 0.90% 0.83% 0.47%(a)
Net investment income 4.22% 4.68% 5.14% 6.08%(a)
Expense waiver/reimbursement (b) 0.27% 0.50% 0.86% 1.70%(a)
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $74,706 $63,492 $20,883 $6,031
Portfolio turnover rate 29% 17% 51% 27%
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30,
TRUST SHARES 1994 1993 1992 1991*
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.26 $ 10.46 $ 10.18 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.48 0.53 0.54 0.57
Net realized and unrealized gain (loss) on investments (0.92) 0.89 0.29 0.18
- ------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.44) 1.42 0.83 0.75
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.48)(e) (0.53) (0.54) (0.57)
Distributions to shareholders from net realized gain on investment
transactions (0.06) (0.09) (0.01) --
Distributions to shareholders in excess of net realized gain on
investment transactions (0.02)(c) -- -- --
- ------------------------------------------------------------------------------------------------------------------
Total distributions (0.56) (0.62) (0.55) (0.57)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.26 $ 11.26 $ 10.46 $ 10.18
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** (4.01%) 13.62% 8.51% 7.64%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.90% 0.75% 0.83% 0.47%(a)
Net investment income 4.47% 4.85% 5.14% 6.08%(a)
Expense waiver/reimbursement (b) 0.27% 0.50% 0.86% 1.70%(a)
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $34,165 $41,204 $20,852 $8,546
Portfolio turnover rate 29% 17% 51% 27%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 16, 1990 (date of initial
public investment) to September 30, 1991.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These
distributions do not represent a return of capital for federal income tax
purposes.
(d) Amount includes distributions to shareholders in excess of net investment
income of $0.0001 per share.
(e) Amount includes distributions to shareholders in excess of net investment
income of $0.0002 per share.
(See Notes which are an integral part of the Financial Statements)
THE MARYLAND MUNICIPAL BOND FUND
(FORMERLY, MARYLAND MUNICIPAL BOND FUND)
]FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
<S> <C> <C> <C> <C>
INVESTMENT SHARES 1994 1993 1992 1991*
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.24 $ 10.39 $ 10.10 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.45 0.49 0.54 0.53
Net realized and unrealized gain (loss) on investments (0.97) 0.85 0.29 0.10
- ------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.52) 1.34 0.83 0.63
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.45) (0.49) (0.54) (0.53)
Distributions to shareholders from capital gains (0.10) -- -- --
- ------------------------------------------------------------------------------------------------------------------
Total distributions (0.55) (0.49) (0.54) (0.53)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.17 $ 11.24 $ 10.39 $ 10.10
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** (4.74%) 13.24% 8.31% 6.64%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 1.17% 1.00% 0.59% 0.60%(a)
Net investment income 4.22% 4.50% 5.11% 5.66%(a)
Expense waiver/reimbursement (b) 0.51% 0.77% 1.91% 1.05%(a)
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $34,580 $33,907 $4,053 $2,940
Portfolio turnover rate 27% 23% 34% 35%
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30,
TRUST SHARES 1994 1993 1992 1991*
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.24 $ 10.39 $ 10.10 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.48 0.50 0.54 0.53
Net realized and unrealized gain (loss) on investments (0.97) 0.85 0.29 0.10
- ------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.49) 1.35 0.83 0.63
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.48) (0.50) (0.54) (0.53)
Distributions to shareholders from capital gains (0.10) -- -- --
- ------------------------------------------------------------------------------------------------------------------
Total distributions (0.58) (0.50) (0.54) (0.53)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.17 $ 11.24 $ 10.39 $ 10.10
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** (4.50%) 13.37% 8.31% 6.64%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.92% 0.86% 0.59% 0.60%(a)
Net investment income 4.46% 4.64% 5.11% 5.66%(a)
Expense waiver/reimbursement (b) 0.51% 0.77% 1.91% 1.05%(a)
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted)
$11,301 $12,014 $6,004 $556
Portfolio turnover rate 27% 23% 34% 35%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 16, 1990 (date of initial
public investment) to September 30, 1991.
** Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
THE TREASURY MONEY MARKET FUND
(FORMERLY, TREASURY MONEY MARKET FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
<S> <C> <C> <C> <C>
INVESTMENT SHARES 1994 1993 1992 1991*
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.02 0.04 0.06
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.03) (0.02) (0.04) (0.06)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** 2.90% 2.52% 3.61% 5.90%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.84% 0.70% 0.70% 0.51%(a)
Net investment income 2.86% 2.47% 3.49% 5.65%(a)
Expense waiver/reimbursement (b) 0.18% 0.20% 0.11% 0.27%(a)
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $21,883 $20,382 $12,960 $548
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30,
TRUST SHARES 1994 1993 1992 1991*
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.03 0.04 0.06
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.03) (0.03) (0.04) (0.06)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** 3.16% 2.64% 3.61% 5.90%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.59% 0.58% 0.70% 0.51%(a)
Net investment income 3.30% 2.60% 3.49% 5.65%(a)
Expense waiver/reimbursement (b) 0.18% 0.20% 0.11% 0.27%(a)
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $304,285 $152,921 $163,451 $129,959
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 16, 1990 (date of initial
public investment) to September 30, 1991.
** Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
THE MONEY MARKET FUND
(FORMERLY, MONEY MARKET FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
<S> <C> <C> <C> <C>
INVESTMENT SHARES 1994 1993 1992 1991*
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.03 0.04 0.06
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.03) (0.03) (0.04) (0.06)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** 3.10% 2.77% 3.79% 5.92%
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.80% 0.64% 0.64% 0.51%(a)
Net investment income 3.07% 2.68% 3.64% 5.99%(a)
Expense waiver/reimbursement (b) 0.25% 0.30% 0.29% 0.36%(a)
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $15,236 $9,905 $5,803 $1
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30,
TRUST SHARES 1994 1993 1992 1991*
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.03 0.04 0.06
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.03) (0.03) (0.04) (0.06)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** 3.35% 2.89% 3.79% 5.92%
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.55% 0.50% 0.64% 0.51%(a)
Net investment income 3.25% 2.83% 3.64% 5.99%(a)
Expense waiver/reimbursement (b) 0.25% 0.30% 0.29% 0.36%(a)
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $132,445 $134,397 $136,616 $57,432
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 16, 1990 (date of initial
public investment) to September 30, 1991.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
THE TAX-FREE MONEY MARKET FUND
(FORMERLY, TAX-FREE MONEY MARKET FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
SEPTEMBER 30,
<S> <C>
1994*
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01
LESS DISTRIBUTIONS
Dividends to shareholders from net investment income (0.01)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** 0.45%
- --------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.36%(a)
Net investment income 2.65%(a)
Expense waiver/reimbursement (b) 0.70%(a)
- --------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $21,967
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from July 27, 1994 (date of initial public
investment) to September 30, 1994.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
THE MEDALIST FUNDS
(FORMERLY, SIGNET SELECT FUNDS)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Medalist Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end, management investment company.
The Trust consists of five diversified and two non-diversified portfolios
(individually referred to as the "Fund" or collectively as the "Funds"): The
U.S. Government Securities Fund ("Government Securities Fund"), The Stock Fund
("Stock Fund"), The Virginia Municipal Bond Fund ("Virginia Municipal Bond
Fund"), The Maryland Municipal Bond Fund ("Maryland Municipal Bond Fund"), The
Treasury Money Market Fund ("Treasury Money Market Fund"), The Money Market Fund
("Money Market Fund") and The Tax-Free Money Market Fund ("Tax-Free Money Market
Fund"). All Funds, except Tax-Free Money Market Fund, are offered in two classes
of shares: Trust Shares and Investment Shares. Tax-Free Money Market Fund is
presented as investment shares for financial statement purposes. The assets of
each portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--Municipal bonds are valued by an independent pricing
service taking into consideration yield, liquidity, risk, credit, quality,
coupon, maturity, type of issue, and any other factors or market data it
deems relevant in determining valuations for normal institutional size
trading units of debt securities. The independent pricing service does not
rely exclusively on quoted prices.
Listed equity securities, corporate bonds and other fixed income securities
and asset backed securities are valued at the last sale price reported on
national securities exchanges. U. S. government obligations are generally
valued at the mean between the over-the-counter bid and asked prices as
furnished by an independent pricing service. Unlisted securities and bonds
are generally valued at the price provided by an independent pricing
service. Short-term securities with remaining maturities of sixty days or
less may be stated at amortized cost, which approximates value. Investments
in other regulated investment companies are valued at net asset value.
Since the Virginia Municipal Bond Fund and Maryland Municipal Bond Fund
invest a substantial portion of their assets in issuers located in one
state, they will be more susceptible to factors adversely affecting issuers
of that state than would be a comparable general tax-exempt mutual fund.
In order to reduce the credit risk associated with such factors, at
September 30, 1994, 7.5% of the securities in the Virginia Municipal Bond
Fund's portfolio of investments are backed by letters of credit or bond
insurance of various financial institutions and financial guaranty
assurance agencies. The aggregate percentages by financial institutions and
agencies ranged from 0.9% to 4.7% of total investments.
At September 30, 1994, 25.2% of the securities in the Maryland Municipal
Bond Fund's portfolio of investments are backed by letters of credit or
bond insurance of various financial institutions and financial guaranty
assurance agencies. The aggregate percentages by financial institutions and
agencies ranged from 2.1% to 9.4% of total investments.
The money market funds use of the amortized cost method to value their
portfolio securities is in accordance with Rule 2a-7 under the Act.
B. REPURCHASE AGREEMENTS--It is the policy of the Funds to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System or to have
THE MEDALIST FUNDS
- --------------------------------------------------------------------------------
segregated within the custodian bank's vault, all securities held as
collateral in support of repurchase agreement investments. Additionally,
procedures have been established by the Funds to monitor, on a daily basis,
the market value of each repurchase agreement's underlying collateral to
ensure that the value of collateral at least equals the principal amount of
the repurchase agreement, including accrued interest.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Trust's adviser to be creditworthy pursuant to guidelines
established by the Board of Trustees (the "Trustees"). Risks may arise from
the potential inability of counterparties to honor the terms of the
repurchase agreement. Accordingly, the Funds could receive less than the
repurchase price on the sale of collateral securities.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Interest income and expenses are accrued daily. Bond premium and discount,
if applicable, are amortized as required by the Internal Revenue Code, as
amended (the "Code").
Distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principals. These
distributions do not represent a return of capital for federal income tax
purposes.
D. FEDERAL TAXES--It is each Fund's policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of their taxable or tax-exempt
income. Accordingly, no provisions for federal tax are necessary. At
September 30, 1994, the Money Market Fund, for federal tax purposes, had a
capital loss carryforward of $37,305, which will reduce the Fund's taxable
income arising from future net realized gain on investments, if any, to the
extent permitted by the Code, and thus will reduce the amount of the
distributions to shareholders which would otherwise be necessary to relieve
the Funds of any liability for federal tax. Pursuant to the Code, such
capital loss carryforwards will expire in 2002. Additionally, the Money
Market Fund, Virginia Municipal Bond Fund and The U.S. Government
Securities Fund had net capital losses of $42,189, $172,554 and $9,737,663,
respectively, attributable to security transactions incurred after October
31, 1993 which are treated as arising on the first day of the Funds' next
taxable year.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
F. DEFERRED EXPENSES--The costs incurred by each Fund with respect to
registration of their shares in their first fiscal year, excluding the
initial expense of registering the shares, have been deferred and are being
amortized using the straight-line method not to exceed a period of five
years from each Fund's commencement date.
G. DOLLAR ROLL TRANSACTIONS--The Government Securities Fund enters into dollar
roll transactions, with respect to mortgage securities issued by GNMA, FNMA
and FHLMC, in which the Fund agrees to sell securities that it holds to
financial institutions and simultaneously agrees to purchase substantially
similar (same type, coupon and maturity) securities at a later date at an
agreed upon price. Dollar roll transactions are treated for accounting and
tax purposes as short-term financing arrangements which will not exceed
twelve months. The Fund will use the proceeds generated from the
transactions to invest in short-term investments, which may enhance the
Fund's current yield and total return.
H. OTHER--Investment transactions are accounted for on the trade date.
THE MEDALIST FUNDS
- --------------------------------------------------------------------------------
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SECURITIES FUND STOCK FUND
<S> <C> <C> <C> <C>
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994: SHARES DOLLARS SHARES DOLLARS
INVESTMENT SHARES:
- ---------------------------------------------------------
Shares sold 2,757,863 $ 28,737,258 991,369 $ 12,047,687
- ---------------------------------------------------------
Shares issued to shareholders in payment of dividends
declared 659,546 6,803,369 55,960 682,714
- ---------------------------------------------------------
Shares redeemed (2,914,655) (29,801,745) (291,272) (3,520,199)
- --------------------------------------------------------- ---------- ------------ ---------- ------------
502,754 $ 5,738,882 756,057 $ 9,210,202
---------- ------------ ---------- ------------
TRUST SHARES:
- ---------------------------------------------------------
Shares sold 3,770,940 $ 38,897,636 4,077,354 $ 48,442,557
- ---------------------------------------------------------
Shares issued to shareholders in payment of dividends
declared 1 8 79,916 969,109
- ---------------------------------------------------------
Shares redeemed (3,182,224) (32,510,770) (3,511,622) (42,406,763)
- --------------------------------------------------------- ---------- ------------ ---------- ------------
588,717 6,386,874 645,648 7,004,903
---------- ------------ ---------- ------------
Net change resulting from Fund share transactions 1,091,471 $ 12,125,756 1,401,705 $ 16,215,105
- --------------------------------------------------------- ---------- ------------ ---------- ------------
<CAPTION>
U.S. GOVERNMENT
SECURITIES FUND STOCK FUND
<S> <C> <C> <C> <C>
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993: SHARES DOLLARS SHARES DOLLARS
INVESTMENT SHARES:
- ---------------------------------------------------------
Shares sold 7,706,464 $ 82,234,741 1,373,437 $ 17,096,412
- ---------------------------------------------------------
Shares issued to shareholders in payment of dividends
declared 413,628 4,462,439 17,401 216,646
- ---------------------------------------------------------
Shares redeemed (866,338) (8,295,547) (72,229) (882,131)
- --------------------------------------------------------- ---------- ------------ ---------- ------------
7,253,754 $ 78,401,633 1,318,609 $ 16,430,927
---------- ------------ ---------- ------------
TRUST SHARES:
- ---------------------------------------------------------
Shares sold 3,568,801 $ 36,487,002 2,146,235 $ 26,641,060
- ---------------------------------------------------------
Shares issued to shareholders in payment of dividends
declared 1 10 81,245 1,020,232
- ---------------------------------------------------------
Shares redeemed (1,998,064) (19,480,406) (1,036,561) (12,829,096)
- --------------------------------------------------------- ---------- ------------ ---------- ------------
1,570,738 17,006,606 1,190,919 14,832,196
---------- ------------ ---------- ------------
Net change resulting from Fund share transactions 8,824,492 $ 95,408,239 2,509,528 $ 31,263,123
- --------------------------------------------------------- ---------- ------------ ---------- ------------
</TABLE>
THE MEDALIST FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL MARYLAND MUNICIPAL
BOND FUND BOND FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994: SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
INVESTMENT SHARES:
- ---------------------------------------------------------
Shares sold 2,681,458 $ 29,538,167 962,509 $ 10,359,731
- ---------------------------------------------------------
Shares issued to shareholders in payment of dividends
declared 293,628 3,164,502 142,395 1,526,367
- ---------------------------------------------------------
Shares redeemed (1,332,660) (14,244,030) (723,930) (7,619,230)
- --------------------------------------------------------- ---------- ------------ ---------- ------------
1,642,426 $ 18,458,639 380,974 $ 4,266,868
---------- ------------ ---------- ------------
TRUST SHARES:
- ---------------------------------------------------------
Shares sold 857,465 $ 9,267,525 423,210 $ 4,487,824
- ---------------------------------------------------------
Shares issued to shareholders in payment of dividends
declared 46 511 1 8
- ---------------------------------------------------------
Shares redeemed (1,187,167) (12,735,003) (381,847) (4,051,459)
- --------------------------------------------------------- ---------- ------------ ---------- ------------
(329,656) (3,466,967) 41,364 436,373
---------- ------------ ---------- ------------
Net change resulting from Fund share transactions 1,312,770 $ 14,991,672 422,338 $ 4,703,241
- --------------------------------------------------------- ---------- ------------ ---------- ------------
<CAPTION>
VIRGINIA MUNICIPAL MARYLAND MUNICIPAL
BOND FUND BOND FUND
<S> <C> <C> <C> <C>
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993: SHARES DOLLARS SHARES DOLLARS
INVESTMENT SHARES:
- ---------------------------------------------------------
Shares sold 4,242,902 $ 45,236,230 1,775,657 $ 19,069,313
- ---------------------------------------------------------
Shares issued to shareholders in payment of dividends
declared 166,275 1,794,407 86,289 928,233
- ---------------------------------------------------------
Shares redeemed (764,792) (7,770,058) (197,117) (2,182,935)
- --------------------------------------------------------- ---------- ------------ ---------- ------------
3,644,385 $ 39,260,579 1,664,829 $ 17,814,611
---------- ------------ ---------- ------------
TRUST SHARES:
- ---------------------------------------------------------
Shares sold 2,213,254 $ 22,844,274 551,722 $ 5,981,004
- ---------------------------------------------------------
Shares issued to shareholders in payment of dividends
declared 153 1,640 1 8
- ---------------------------------------------------------
Shares redeemed (546,127) (4,845,614) (60,390) (658,016)
- --------------------------------------------------------- ---------- ------------ ---------- ------------
1,667,280 18,000,300 491,333 5,322,996
---------- ------------ ---------- ------------
Net change resulting from Fund share transactions 5,311,665 $ 57,260,879 2,156,162 $ 23,137,607
- --------------------------------------------------------- ---------- ------------ ---------- ------------
</TABLE>
THE MEDALIST FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX-FREE
MONEY
TREASURY MARKET
MONEY MARKET FUND MONEY MARKET FUND FUND
<S> <C> <C> <C> <C> <C>
1994 1993 1994 1993 1994*
INVESTMENT SHARES
- -----------------------------------
Shares sold 25,345,275 39,935,444 25,429,884 27,269,514 32,866,117
- -----------------------------------
Shares issued to shareholders in
payment of dividends declared 598,445 395,861 318,530 239,475 17,108
- -----------------------------------
Shares redeemed (24,442,899) (32,908,788) (20,417,859) (23,406,781) (10,916,585)
- ----------------------------------- -------------- ------------ ------------ ------------ -----------
1,500,821 7,422,517 5,330,555 4,102,208 21,966,640
-------------- ------------ ------------ ------------ -----------
TRUST SHARES
- -----------------------------------
Shares sold 1,045,478,085 330,249,896 276,276,617 298,420,298 --
- -----------------------------------
Shares issued to shareholders in
payment of dividends declared 34 233 2 2 --
- -----------------------------------
Shares redeemed (894,114,112) (340,781,049) (278,229,002) (300,639,349) --
- ----------------------------------- -------------- ------------ ------------ ------------ -----------
151,364,007 (10,530,920) (1,952,383) (2,219,049) --
-------------- ------------ ------------ ------------ -----------
Net change resulting from Fund
share transactions 152,864,828 (3,108,403) 3,378,172 1,883,159 21,966,640
- ----------------------------------- -------------- ------------ ------------ ------------ -----------
</TABLE>
* For the period from July 27, 1994 (date of initial public investment) to
September 30, 1994.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Signet Asset Management, the Trust's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
based on a percentage of each Fund's average daily net assets (see below).
<TABLE>
<CAPTION>
FUND ANNUAL RATE
<S> <C>
Government Securities Fund 0.75%
Stock Fund 0.75%
Virginia Municipal Bond Fund 0.75%
Maryland Municipal Bond Fund 0.75%
Treasury Money Market Fund 0.50%
Money Market Fund 0.50%
Tax-Free Money Market Fund 0.50%
</TABLE>
The Adviser may voluntarily choose to waive a portion of its fee or reimburse
certain operating expenses of each Fund. The Adviser can modify or terminate
this voluntary waiver and reimbursement at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides each Fund
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, each
Fund will reimburse Federated Securities Corp. ("FSC"), the principal
distributor, from the net assets of the Investment Shares of the Funds, to
finance activities intended to result in the sale of the Fund's shares. The Plan
provides that the Funds may incur distribution expenses up to 0.25 of 1% of the
average daily net assets of the Investment Shares of the Government Securities
Fund, the Stock Fund, the Virginia Municipal Bond Fund and the Maryland
Municipal Bond Fund and up to 0.35 of 1% of the average daily net assets of the
Investment Shares of the Treasury Money Market Fund, the Money Market Fund, and
the Tax-Free Money Market Fund, annually, to pay commissions, maintenance fees
and to compensate the distributor.
THE MEDALIST FUNDS
- --------------------------------------------------------------------------------
TRANSFER AND DIVIDEND DISBURSING AGENT, PORTFOLIO ACCOUNTING AND CUSTODY
FEES--Federated Services Company ("FServ") serves as transfer and dividend
disbursing agent for the Funds. The FServ fee is based on the size, type, and
number of accounts and transactions made by shareholders.
FServ also maintains the Funds' accounting records. The fee is based on the
level of each Fund's average net assets for the period plus, out-of-pocket
expenses.
Signet Trust Company is the Funds' custodian. The fee is based on the level of
the Fund's average net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES-- Organizational expenses were borne initially by FAS.
The Funds have agreed to reimburse FAS for the organizational expenses during
the five year period following the date each Fund's portfolio became effective.
<TABLE>
<CAPTION>
EXPENSES OF AMOUNT REIMBURSED
ORGANIZING THE TO FAS FOR THE
FUND YEAR ENDED SEPTEMBER 30, 1994
<S> <C> <C>
Government Securities Fund $ 53,346 11,596
Stock Fund 59,298 4,633
Virginia Municipal Bond Fund 55,256 5,724
Maryland Municipal Bond Fund 58,484 2,365
Treasury Money Market Fund 49,243 13,043
Money Market Fund 50,235 7,044
Tax-Free Money Market Fund 25,000 556
</TABLE>
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
fiscal year ended September 30, 1994, were as follows:
<TABLE>
<CAPTION>
GOVERNMENT VIRGINIA MARYLAND
SECURITIES STOCK MUNICIPAL BOND MUNICIPAL BOND
FUND FUND FUND FUND
<S> <C> <C> <C> <C>
PURCHASES $ 515,149,401 $ 197,569,990 $ 44,744,499 $ 15,551,877
- -------------------------------------
SALES $ 574,271,070 $ 178,191,992 $ 32,850,131 $ 13,022,068
- -------------------------------------
</TABLE>
THE MEDALIST FUNDS
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
THE MEDALIST FUNDS
We have audited the accompanying statements of assets and liabilities, including
the portfolio of investments of The Medalist Funds (formerly, Signet Select
Funds) (comprising the following portfolios: The U.S. Government Securities
Fund, The Stock Fund, The Virginia Municipal Bond Fund, The Maryland Municipal
Bond Fund, The Treasury Money Market Fund, The Money Market Fund and The
Tax-Free Money Market Fund) as of September 30, 1994, and the related statements
of operations for the year then ended, the statements of changes in net assets
for the years ended September 30, 1994 and 1993 and the financial highlights for
each of the four years in the period ended September 30, 1994. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
September 30, 1994 by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statements presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The Medalist Funds
as of September 30, 1994, the results of their operations, the changes in their
net assets and their financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Pittsburgh, Pennsylvania
November 11, 1994
Trustees Officers
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John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Edward C. Gonzales
James E. Dowd President and Treasurer
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer John W. McGonigle
Wesley W. Posvar Vice President and Secretary
Marjorie P. Smuts Craig P. Churman
Vice President and Assistant Treasurer
David M. Taylor
Assistant Treasurer
C. Grant Anderson
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Funds' prospectus which contains facts concerning
their objective and policies, management fees, expenses and other information.
G00716-01(11/94)
