SIGNET
SELECT FUNDS
TRUST SHARES COMBINED
SEMI-ANNUAL REPORT
MARCH 31, 1994
- U.S. GOVERNMENT INCOME FUND
- VALUE EQUITY FUND
- VIRGINIA MUNICIPAL BOND FUND
- MARYLAND MUNICIPAL BOND FUND
- TREASURY MONEY MARKET FUND
- MONEY MARKET FUND
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Signet Select Funds Semi-Annual Report to you, a
valued institutional shareholder. This report covers the six-month period from
October 1, 1993 through March 31, 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, Signet Select Funds performed competitively
over the period. For example:
- - U.S. Government Income Fund provided investors with dividends of $0.32 per
Trust Share ($0.31 per Investment Share) and capital gains of $0.13 per Trust
Share ($0.13 per Investment Share), while assets increased from $231.5 million
to $232.1 million.
- - Value Equity Fund paid dividends of $0.10 per Trust Share ($0.09 per
Investment Share) and capital gains of $0.20 per Trust Share ($0.20 per
Investment Share), while assets stood at $80 million at the end of the period.
- - Virginia Municipal Bond Fund paid dividends of $0.24 per Trust Share ($0.23
per Investment Share) and capital gains of $0.08 per Trust Share ($0.08 per
Investment Share), while assets increased from $104.7 million to $114.6
million.
- - Maryland Municipal Bond Fund paid dividends of $0.24 per Trust Share ($0.23
per Investment Share) and capital gains of $0.10 per Trust Share ($0.10 per
Investment Share), while assets increased from $45.9 million to $48 million.
- - Treasury Money Market Fund paid dividends of $0.01 per Trust Share ($0.01 per
Investment Share), and experienced a major increase in assets from $173.3
million to $284.3 million.
- - Money Market Fund paid dividends of $0.01 per Trust Share ($0.01 per
Investment Share), and the Fund's assets stood at $140 million at the end of
the period.
Thank you for your confidence in Signet Select Funds. We will continue to keep
you fully informed, and we look forward to serving you as you pursue your
financial goals.
Sincerely,
Edward C. Gonzales
President
May 15, 1994
INVESTMENT REVIEW
U.S. Government Income Fund
- --------------------------------------------------------------------------------
Trust Shares
Q How did the Signet Select U.S. Government Income Fund ("Fund") perform over
the six-month reporting period?
A The Fund has had an average total rate of return of -2.88% for Trust
Shares, and -3.00% for Investment Shares (-4.90% taking into account the
redemption fee) for the six-month period ended March 31, 1994.* The
negative performance was a result of rate increases by the Federal Reserve (the
"Fed") which forced bond prices lower. Rate increases were deemed necessary to
prevent any rise in inflation as a result of stronger than expected economic
growth in the third and fourth quarters of 1993.
Q With interest rates finally on the rise, how have you positioned the Fund's
portfolio?
A In anticipation of rate increases by the Fed, we reduced the portfolio's
average maturity in January of 1994. A reduction in average maturity helps
to preserve principal value as bond prices fall. We believe that the
shorter the average maturity during a rising environment, the better the
relative performance of the Fund will be. We instituted a modest shortening of
maturity given our belief that the rise in interest rates will be temporary. In
addition, the portfolio weighting in mortgage securities was reduced
substantially. Mortgages underperformed relative to intermediate term U.S.
Treasury securities during the first quarter of 1994.
Q What is your outlook for rates in the near future? Do you foresee making
any further changes to the Fund's duration?
A By virtue of the recent interest rate increases by the Fed, we believe the
economy will begin showing signs of slower growth in the second half of
1994. Rate increases have the obvious effect of making purchases of cars
and homes more expensive. As interest rates rise, consumers delay or abandon
their plans to purchase "big ticket" items. With consumer purchases accounting
for two-thirds of Gross Domestic Product ("GDP"), any decrease in spending will
have an immediate impact on economic activity.
Given our views expressed above, we do not expect to see interest rates as low
as they were in 1993, but some moderation from current levels is anticipated. If
we are correct and the economy begins to show signs of slower economic growth,
we will then begin extending the duration or average maturity of the portfolio.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
INVESTMENT REVIEW
Value Equity Fund
- --------------------------------------------------------------------------------
Trust Shares
Q How did the Value Equity Fund ("Fund") perform over the six-month reporting
period, compared to the S&P 500?
A For the six-month period ended March 31, 1994, the Value Equity Fund had a
return of -2.08% for Trust Shares and -2.19% for Investment Shares* (-4.18%
taking into account the redemption fee), which compares to the Standard and
Poor's 500 Index decline of -1.59%.**
Q During the period, what notable additions did you make to the portfolio and
why?
A The Fund added to shares of existing positions in the portfolio and made
several new investments in companies over the last six months. Some
examples of the new additions include:
Columbia Hospital, which is the world's largest health care services company
operating over 190 hospitals nationwide. Double digit profit growth is forecast
by many analysts due to the cost efficiencies from current and future
acquisitions of hospitals.
Nynex, which operates the fifth largest local telephone business serving New
York state and the New England states. Following a decline in price, the company
was purchased at a dividend yield of over 6%. Continued growth in their cellular
and cable businesses should help overall corporate profits increase rapidly.
Microsoft, which designs and develops personal computer software including the
industry standard MS-DOS system for IBM based computers. Double-digit profit
growth and a purchase price which did not fully reflect the new software
releases provided the basis for the purchase.
Q Knowing when to sell is an equally important factor in successful
investing. What factors influence your decision to remove a stock from the
portfolio? Can you comment on particular stocks that were removed during
the past six months?
A The ability to sell a stock is critical to the investment process. Often a
stock will rise in value to a point where it overstates its long term
prospects. At other times, a stock may have deteriorating fundamentals,
such as challenging competition or declining profits, where selling is done to
preserve capital. In either case, we carefully evaluate the company's price
compared to its long-term business outlook. Examples of sales that occurred over
the past six months include:
Toll Brothers, a home builder, was sold after it ran up in price and was left
vulnerable to an increase in interest rates. That occurred during the first
quarter after the fund had sold its entire position for a profit.
Masco Corporation is another company tied to the housing industry that was
vulnerable to rising mortgage rates. The initial position was purchased while
interest rates were declining, and sold for a profit when the increased stock
price reflected continued low levels of interest rates.
Both are examples of good companies that would be purchased again if the price
understated the long term potential growth rate of the companies.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
** The Standard & Poor's 500 Index is unmanaged.
- --------------------------------------------------------------------------------
Q Interest rates are beginning to rise. How do you see the stock market
responding and how do you anticipate positioning the portfolio?
A Interest rates have risen following the Fed's attempt to fight potential
inflation and slow down the economy by raising the Federal Funds rate. The
stock market has fallen in response to the higher level of rates because it
means generally lower corporate profits and reduced valuations that investors
are willing to pay for purchasing shares. We do not foresee runaway inflation or
sharply higher interest rates at this time.
Our strategy in the Fund is to focus on companies with above-average profit
growth, and at this time not have an overweighting in any economic sector. In
the long run stock prices follow earnings, so the focus is on those companies
with continued strong business fundamentals.
INVESTMENT REVIEW
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Trust Shares
Q How did the Virginia Municipal Bond Fund ("Fund") perform over the past six
months? What was the Fund's yield equivalent to in terms of a taxable
investment for an investor in the 28% federal tax bracket?
A The economy continued to show evidence of expansive and sustainable growth
over the past six months. The fear of an accelerating rate of inflation
remained in the foreground. In order to keep inflation manageable, the Fed
moved to a less accommodative monetary policy, resulting in a steady rise in
interest rates. In response, the Virginia Municipal Bond Fund has moved to a
more defensive posture. Even with rates on the rise, municipalities placed an
unexpectedly heavy amount of new issuance into the market. Demand for tax-free
bonds was sporadic due to market volatility, and many investors retreated to the
sidelines awaiting stabilization.
Due to the increase in interest rates, the Fund's yield increased. The Fund
moved from a 30-day distribution rate of 4.48% for Trust Shares and 4.23% for
Investment Shares on October 1, 1993, to 4.53% and 4.28%, respectively, on March
31, 1994. The 30-day SEC yield on March 31, 1994 was 4.39% for Trust Shares and
4.14% for Investment Shares. For an investor in the 28% federal tax bracket,
this equates to a 6.83% for Trust Shares and 6.46% for Investment Shares taxable
equivalent 30-day distribution rate and 6.63% for Trust Shares and 6.25% for
Investment Shares taxable equivalent 30-day SEC yield for March 31, 1994.
The total rate of return (income plus capital appreciation) for the past six
months was -4.26% for Trust Shares and -4.38% for Investment Shares (-6.29%
taking into account the redemption fee). For the 12 months ended March 31, 1994,
the return was 2.92% for Trust Shares and 2.70% for Investment Shares (0.65%
taking into account the redemption fee). Again, these returns are double
tax-free and reflect the recent turn in the bond market.* Since inception in
October 1990, the Fund has produced a cumulative total return of 27.06% for the
Trust Shares and 26.76% for Investment Shares (24.35% taking into account the
redemption fee). The annualized total returns for this period were 7.22% for
Trust Shares and 7.15% for Investment Shares (6.55% taking into account the
redemption fee). We believe our current strategy will enhance the Fund's total
return in this declining price/increasing yield environment.
Q Has Virginia continued to be one of the stronger states from an economic
perspective?
A The Commonwealth of Virginia continues to be recognized for its diverse
economy and fiscal conservation. The willingness and ability to adjust
financial planning has enabled the Commonwealth to sustain moderate growth.
Although uncertainty remains with respect to defense cutbacks, the growth in the
private sector is expected to compensate for the losses incurred. Virginia's
unemployment rate consistently remains well below national averages, and per
capita income remains one of the highest in the Southeast. By virtue of these
statistics, Virginia is one of the few states which maintains Aaa/AAA ratings by
Moody's and Standard & Poor's and a stable long-term outlook.
* Income may be subject to the federal alternative minimum tax.
- --------------------------------------------------------------------------------
Q Can you comment on any changes you've made in strategy during the six-month
period, particularly with respect to the rise in interest rates?
A With the economy expanding and interest rates being driven higher, the
Virginia Municipal Bond Fund has moved to a more defensive strategy over
the past six months. As yields on municipals followed the upward movement
of yields on Treasuries, we began to shorten the maturity buying range. The Fund
continues to strive toward a more equal weighting between General Obligation and
Revenue bonds. In order to insulate the Fund somewhat from an erosion of value,
we have placed greater emphasis on higher coupon paper, as performance in this
sector is higher in a declining price/rising yield environment. The yield
differential between an AAA and an A rated bond remains historically narrow.
Therefore, we feel the risk/return tradeoff is not at an optimum level, and
placed greater emphasis on higher quality municipals. With the available supply
of tax-exempt paper expected to decline, and demand expected to rise in
conjunction with tax increases, we expect municipals to perform well over the
year. We will continue to manage the portfolio with a 10-year maturity target.
INVESTMENT REVIEW
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Trust Shares
Q How did the Maryland Municipal Bond Fund ("Fund") perform over the past six
months? What was the Fund's yield equivalent to in terms of a taxable
investment for an investor in the 28% federal tax bracket?
A The economy continued to show evidence of expansive and sustainable growth
over the past six months. The fear of an accelerating rate of inflation
remained in the foreground. In order to keep inflation manageable, the Fed
moved to a less accommodative monetary policy, resulting in a steady rise in
interest rates. In response, the Maryland Municipal Bond Fund has moved to a
more defensive posture. Even with rates on the rise, municipalities placed an
unexpectedly heavy amount of new issuance into the market. Demand for tax-free
bonds was sporadic due to market volatility and many investors retreated to the
sidelines awaiting stabilization.
Due to the increase in interest rates, the Fund's yield increased. The Fund
moved from a 30-day distribution rate of 4.09% for Trust Shares and 3.84% for
Investment Shares on October 1, 1993, to 4.36% and 4.11%, respectively, on March
31, 1994. The 30-day yield on March 31, 1994 was 4.40% for Trust Shares and
4.15% for Investment Shares. For an investor in the 28% federal tax bracket,
this equates to a 6.76% for Trust Shares and 6.37% for Investment Shares taxable
equivalent 30-day distribution rate and 6.82% for Trust Shares and 6.43% for
Investment Shares taxable equivalent 30-day SEC yield for March 31, 1994.
The total rate of return (income plus capital appreciation) for the past six
months was -4.99% for Trust Shares and -5.11% for Investment Shares (-7.03%
taking into account the redemption fee). For the 12 months ended March 31, 1994,
the return was 2.05% for Trust Shares and 1.83% for Investment Shares (-0.23%
taking into account the redemption fee). Again, these returns are double
tax-free and reflect the recent turn in the bond market.* Since inception in
October 1990, the Fund has produced a cumulative total return of 24.41% for the
Trust Shares and 24.12% for Investment Shares (21.73% taking into account the
redemption fee). The annualized total returns for this period were 6.60% for
Trust Shares and 6.52% for Investment Shares (5.92% taking into account the
redemption fee). We believe our current strategy will enhance the Fund's total
return in this declining price/increasing yield environment.
Q Has Maryland's economic situation improved?
A The State of Maryland's financial condition has remained under pressure
throughout the national recession. With the recent economic upturn, the
State continues to struggle in its own rebound. Employment has seen little
growth, corporate profits are low, and localities remain negatively impacted
from state-wide funding cuts. However, the outlook for the State economy as a
whole remains stable. Maryland enjoys a broad based economy, strong wealth
levels and a versatile financial structure. The debt burden is high but
manageable, and historically performance is sound. These strengths enable
Maryland to be one of the few states to maintain Aaa/AAA ratings by Moody's and
Standard & Poor's.
* Income may be subject to the federal alternative minimum tax.
- --------------------------------------------------------------------------------
Q Can you comment on any changes you've made in strategy during the six-month
period, particularly with respect to the rise in interest rates?
A With the economy expanding and interest rates being driven higher, the
Maryland Municipal Bond Fund has moved to a more defensive strategy over
the past six months. As yields on municipals followed the upward movement
of yields on Treasuries, we began to shorten the maturity buying range. The Fund
continues to strive toward a more equal weighting between General Obligation and
Revenue bonds. In order to insulate the Fund somewhat from an erosion of value,
we have placed greater emphasis on higher-coupon paper, as performance in this
sector is higher in a declining price/rising yield environment. The yield
differential between an AAA and an A rated bond remains historically narrow.
Therefore, we feel the risk/return tradeoff is not at an optimum level, and
place greater emphasis on higher quality municipals. With the available supply
of tax-exempt paper expected to decline, and demand expected to rise in
conjunction with tax increases, we expect municipals to perform well over the
year. We will continue to manage the portfolio with a 10-year average maturity
target.
INVESTMENT REVIEW
Treasury Money Market Fund
- --------------------------------------------------------------------------------
Trust Shares
Q Interest rates are finally on the rise. Can you comment on the series of
rate increases and its effect on the Fund's yield?
A The Fed's policy change to raise "real" short term rates is partly an
attempt to prevent inflationary economic expansion. The Fed's target for
Fed funds may approximate 4.00%, as a move from an accommodative position
to a neutral position. The amount and timing of additional rate increases
creates uncertainty for short-term rates. The rate increases by the Fed have
impacted the Fund's yield. The seven-day net yield increased approximately .18%
during the first quarter of 1994.
Q How did the Fund respond in terms of performance?
A The Fund's average net yield for the quarter was 2.62% as compared to
Donoghue Treasury & Repo Index of 2.56% for the same period (data per the
April 1994 issue of "Money Market Insight").*
Q What is your outlook for interest rates in the near future?
A We believe that interest rates will be driven in the near future by Fed
policy and the Fed's "neutral target for the Fed funds rate. This Fed
action may result in a .25% - .50% increase in the Fed funds rate, thus
resulting in pressure on short-term rates to rise.
Q As a result, have you made any further changes in the Fund's average
maturity?
A The Fund's average maturity is slightly shorter and will be postured in a
"defensive" position in anticipation of further Fed tightening.
* The Donaghue Treasury & Repo Index is unmanaged.
INVESTMENT REVIEW
Money Market Fund
- --------------------------------------------------------------------------------
Trust Shares
Q Interest rates are finally on the rise. Can you comment on the series of
rate increases and the affect on the Fund's yield?
A The Fed's policy change to raise "real" short-term rates is partly an
attempt to prevent inflationary economic expansion. The Fed's target for
Fed funds may approximate 4.00%, as a move from an accommodative position
to a neutral position. The amount and timing of additional rate increases
creates uncertainty for short-term rates. The rate increases by the Fed have
impacted the Fund's yield. The seven-day net yield increased approximately .46%
during the first quarter of 1994.
Q How did the rate increases affect the yield advantage of commercial paper
over Treasuries?
A The spread for commercial paper over Treasuries approximated their recent
historical experience during the first quarter.
Q What is your outlook for commercial paper rates in the near future?
A We believe that the commercial paper rates will be driven in the near
future by Fed policy and the Fed's "neutral" target for the Fed funds rate.
This Fed action may result in a .25% - .50% increase in the Fed funds rate,
thus resulting in pressure on short-term rates to rise.
Q As a result, have you made any further changes in the Fund's average
maturity?
A The Fund's average maturity is slightly shorter, and investment positions
in floating rate notes have increased as a means to possibly increase yield
without extending the average maturity.
U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
SHORT-TERM INVESTMENT--12.9%
- -------------------------------------------------------------------------------------
U.S. TREASURY BILL
----------------------------------------------------------------
$ 30,000,000 4/21/94 (at amortized cost) $ 29,943,500
---------------------------------------------------------------- ------------
LONG-TERM INVESTMENTS--84.5%
- -------------------------------------------------------------------------------------
U.S. TREASURY NOTES--67.1%
----------------------------------------------------------------
147,275,000 4.25%-8.875%, 10/15/95-8/15/2001 (identified cost $160,393,625) 155,792,503
---------------------------------------------------------------- ------------
GOVERNMENT OBLIGATIONS--17.4%
----------------------------------------------------------------
5,000,000 Federal Home Loan Bank, 8.23%, 8/9/2001 5,376,350
----------------------------------------------------------------
500,000 Federal Home Loan Mortgage Corp., PC, REMIC, 8.50%, 9/15/2017 506,120
----------------------------------------------------------------
123,875 Federal Home Loan Mortgage Corp., PC, 7.804%, 12/1/2020 128,659
----------------------------------------------------------------
3,800,000 Federal Home Loan Mortgage Corp., PC, REMIC, 7.80%, 5/15/2012 3,833,554
----------------------------------------------------------------
4,943,064 Federal Home Loan Mortgage Corp., PC., 6.00%, 11/1/2013 4,532,147
----------------------------------------------------------------
131,573 Federal Home Loan Mortgage Corp., PC, 5.606%, 8/1/2019 135,849
----------------------------------------------------------------
4,622,669 Federal National Mortgage Association, REMIC, 12.3958%,
11/25/2022 4,206,629
----------------------------------------------------------------
105,620 Federal National Mortgage Association, REMIC, 8.50%, 12/25/2011 106,059
----------------------------------------------------------------
3,197,297 Federal National Mortgage Association, REMIC, 8.00%, 7/25/2018 3,216,897
----------------------------------------------------------------
1,048,581 Federal National Mortgage Association, 8.50%, 12/1/2001 1,087,242
----------------------------------------------------------------
136,555 Federal National Mortgage Association, 8.479% 6/1/2019 141,463
----------------------------------------------------------------
1,500,000 Federal National Mortgage Association, 7.85%, 9/10/98 1,589,025
----------------------------------------------------------------
14,280,000 Federal National Mortgage Association, 7.50%, 2/1/2009 14,409,377
----------------------------------------------------------------
743,664 Government National Mortgage Association, 9.00%, 9/15/2021 779,918
----------------------------------------------------------------
282,049 Government National Mortgage Association, 8.00%, 3/15/2017 285,135
---------------------------------------------------------------- ------------
TOTAL GOVERNMENT OBLIGATIONS (IDENTIFIED COST, $41,807,949) 40,334,424
---------------------------------------------------------------- ------------
TOTAL LONG-TERM INVESTMENTS (IDENTIFIED COST, $202,201,574) 196,126,927
---------------------------------------------------------------- ------------
</TABLE>
U.S. GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*REPURCHASE AGREEMENT--2.0%
- -------------------------------------------------------------------------------------
$ 4,714,720 Nikko Securities Co. International, Inc., 3.55%, dated 3/31/94,
due 4/4/94 (at amortized cost) (Note 2B) $ 4,714,720
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $236,859,794) $230,785,147+
---------------------------------------------------------------- ------------
</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 $236,859,794. The
net unrealized depreciation on a federal tax basis amounts to $6,074,647,
which is comprised of $150,173 appreciation and $6,224,820 depreciation at
March 31, 1994.
The following abbreviations are used in this portfolio:
PC--Participation Certificates
REMIC--Real Estate Mortgage Investment Conduit
Note: The categories of investments are shown as a percentage of net assets
($232,107,616) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
VALUE EQUITY FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--95.4%
- --------------------------------------------------------------------------------------
BASIC MATERIALS--6.1%
-------------------------------------------------------------------
19,250 Albemarle Corp. $ 283,938
-------------------------------------------------------------------
14,500 duPont (E.I.) Denemours & Co. 768,500
-------------------------------------------------------------------
5,450 Eastman Chemical Co. 219,362
-------------------------------------------------------------------
38,500 Ethyl Corp. 466,813
-------------------------------------------------------------------
20,000 Kimberly-Clark Corp. 1,057,500
-------------------------------------------------------------------
28,000 Weyerhaeuser Co. 1,211,000
-------------------------------------------------------------------
19,210 Willamette Industries, Inc. 912,475
------------------------------------------------------------------- -----------
Total 4,919,588
------------------------------------------------------------------- -----------
CAPITAL GOODS/CONSTRUCTION--8.1%
-------------------------------------------------------------------
18,200 Deere & Co. 1,528,800
-------------------------------------------------------------------
21,000 General Electric Co. 2,092,125
-------------------------------------------------------------------
22,000 Raytheon Co. 1,421,750
-------------------------------------------------------------------
39,500 York International Corp. 1,431,875
------------------------------------------------------------------- -----------
Total 6,474,550
------------------------------------------------------------------- -----------
CONSUMER CYCLICAL--16.8%
-------------------------------------------------------------------
21,300 Chrysler Corp. 1,099,612
-------------------------------------------------------------------
14,800 Dayton Hudson Corp. 1,080,400
-------------------------------------------------------------------
21,800 Eastman Kodak Co. 967,375
-------------------------------------------------------------------
18,500 Eaton Corp. 1,070,688
-------------------------------------------------------------------
38,250 Ford Motor Co. 2,247,188
-------------------------------------------------------------------
29,000 McDonalds Corp. 1,649,375
-------------------------------------------------------------------
59,050 Merisel, Inc. 1,070,281
-------------------------------------------------------------------
23,300 Sears Roebuck & Co. 1,001,900
-------------------------------------------------------------------
53,100 Wal-Mart Stores, Inc. 1,373,962
-------------------------------------------------------------------
109,800 Wendy's International Inc. 1,880,325
------------------------------------------------------------------- -----------
Total 13,441,106
------------------------------------------------------------------- -----------
CONSUMER STAPLES--17.2%
-------------------------------------------------------------------
46,200 Abbott Labs 1,230,075
-------------------------------------------------------------------
18,000 American Home Products Corp. 1,044,000
-------------------------------------------------------------------
27,500 Amgen, Inc. 1,051,875
-------------------------------------------------------------------
31,600 Baush & Lomb, Inc. 1,485,200
-------------------------------------------------------------------
32,700 Columbia/HCA Hospital Corp. 1,316,175
-------------------------------------------------------------------
28,500 CPC International Inc. 1,350,188
-------------------------------------------------------------------
</TABLE>
VALUE EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
-------------------------------------------------------------------
36,900 Crown Cork & Seal, Inc. $ 1,443,713
-------------------------------------------------------------------
40,000 McCormick & Co., Inc. 870,000
-------------------------------------------------------------------
43,400 Merck & Co., Inc. 1,291,150
-------------------------------------------------------------------
39,500 PepsiCo, Inc. 1,446,687
-------------------------------------------------------------------
25,000 Philip Morris Cos., Inc. 1,268,750
------------------------------------------------------------------- -----------
Total 13,797,813
------------------------------------------------------------------- -----------
ENERGY--10.5%
-------------------------------------------------------------------
15,000 Atlantic Richfield Co. 1,425,000
-------------------------------------------------------------------
20,000 Chevron Corp. 1,685,000
-------------------------------------------------------------------
42,100 Dresser Industries. Inc. 894,625
-------------------------------------------------------------------
25,000 Exxon Corp. 1,571,875
-------------------------------------------------------------------
17,350 Mobil Corp. 1,290,406
-------------------------------------------------------------------
24,500 Texaco Inc. 1,543,500
------------------------------------------------------------------- -----------
Total 8,410,406
------------------------------------------------------------------- -----------
FINANCIAL--10.9%
-------------------------------------------------------------------
25,000 AON Corp. 1,200,000
-------------------------------------------------------------------
19,100 Bank of New York, Inc. 974,100
-------------------------------------------------------------------
47,800 Corestates Financial Corp. 1,242,800
-------------------------------------------------------------------
35,500 Crestar Financial Corp. 1,513,187
-------------------------------------------------------------------
29,000 Dean Witter Discover & Co. 946,125
-------------------------------------------------------------------
19,200 Federal Home Loan Mortgage Corp. 974,400
-------------------------------------------------------------------
14,750 Federal National Mortgage Association 1,146,813
-------------------------------------------------------------------
29,378 First Colony Corp. 712,417
------------------------------------------------------------------- -----------
Total 8,709,842
------------------------------------------------------------------- -----------
MISCELLANEOUS--1.2%
-------------------------------------------------------------------
26,000 Allied Signal Inc. 952,250
------------------------------------------------------------------- -----------
TECHNOLOGY--11.3%
-------------------------------------------------------------------
23,300 AT&T Co. 1,194,125
-------------------------------------------------------------------
37,000 Avnet, Inc. 1,410,625
-------------------------------------------------------------------
29,300 Intel Corp. 1,977,750
-------------------------------------------------------------------
15,950 Microsoft Corp. 1,351,762
-------------------------------------------------------------------
38,200 Pitney Bowes, Inc. 1,551,875
-------------------------------------------------------------------
29,000 3Com Corp. 1,620,375
------------------------------------------------------------------- -----------
Total 9,106,512
------------------------------------------------------------------- -----------
</TABLE>
VALUE EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------------
TRANSPORT & SERVICES--2.7%
-------------------------------------------------------------------
16,700 CSX Corp. $ 1,369,400
-------------------------------------------------------------------
12,500 Norfolk Southern Corp. 807,812
------------------------------------------------------------------- -----------
Total 2,177,212
------------------------------------------------------------------- -----------
UTILITIES--10.6%
-------------------------------------------------------------------
38,000 GTE Corp. 1,178,000
-------------------------------------------------------------------
36,500 Montana Power Co. 894,250
-------------------------------------------------------------------
44,500 Nicor, Inc. 1,134,750
-------------------------------------------------------------------
32,700 NYNEX Corp. 1,128,150
-------------------------------------------------------------------
67,000 Southern Co. 1,281,375
-------------------------------------------------------------------
36,000 Southwestern Bell Corp. 1,453,500
-------------------------------------------------------------------
41,000 Sprint Corp. 1,404,250
------------------------------------------------------------------- -----------
Total 8,474,275
------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $73,795,979) 76,463,554
------------------------------------------------------------------- -----------
*REPURCHASE AGREEMENT--3.7%
- --------------------------------------------------------------------------------------
$2,978,012 Nikko Securities Co., International, Inc., 3.55%, dated 3/1/94,
due 4/4/94 (at amortized cost) (Note 2B) 2,978,012
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $76,773,991) $79,441,566+
------------------------------------------------------------------- -----------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $76,773,991. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $2,667,575, which is comprised of $5,461,034 appreciation and $2,793,459
depreciation at March 31, 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
($80,132,119) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
VIRGINIA MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--100.1%
- --------------------------------------------------------------------
$ 790,000 Alexandria, VA, Public Improvement, 5.10%, GO Bond,
2/1/2008 Aaa $ 744,994
------------------------------------------------------
250,000 Amherst, VA, IDA, 6.55%, 9/1/2005 A- 263,680
------------------------------------------------------
900,000 Arlington County, VA, IDA Arlington Hospital 6.60%,
9/1/2004 A-1 980,820
------------------------------------------------------
250,000 Arlington County, VA, 6.00% GO Bond, 12/1/2005 AAA 261,543
------------------------------------------------------
500,000 Arlington County, VA, 5.125% GO Bond, 7/15/2006 AAA 482,500
------------------------------------------------------
1,000,000 Arlington County, VA, Public Improvement, 5.50%,
8/1/2006 AAA 999,910
------------------------------------------------------
500,000 Arlington County, VA, 5.25% GO Bond, 7/15/2007 AAA 483,250
------------------------------------------------------
400,000 Arlington County, VA, 5.60% GO Bond, 8/1/2007 AAA 400,276
------------------------------------------------------
350,000 Augusta County, VA, 6.10% (AMBAC Insured), 9/1/2000 AAA 368,442
------------------------------------------------------
200,000 Bath County, VA, 6.45%, 12/15/2007 A 214,828
------------------------------------------------------
150,000 Bedford, VA, Public Improvement, 5.25% GO Bond,
8/1/2007 A 141,601
------------------------------------------------------
785,000 Charlottesville, VA, 5.20% GO Bond, 7/15/2008 AAA 755,822
------------------------------------------------------
225,000 Chesapeake, VA, Water & Sewer System Authority, 5.95%,
GO Bond, 7/1/2000 A+ 234,250
------------------------------------------------------
320,000 Chesapeake, VA, Water & Sewer System Authority, 6.60%,
GO Bond, 7/1/2006 A+ 341,830
------------------------------------------------------
1,000,000 Chesapeake, VA, 5.25% GO Bond, 12/1/2006 AA 979,110
------------------------------------------------------
1,360,000 Chesapeake, VA, Public Improvement, 5.70%, 8/1/2007 AA 1,378,918
------------------------------------------------------
300,000 Chesterfield County, VA, 6.60%, (Series B), 1/1/2003 AAA 327,144
------------------------------------------------------
300,000 Chesterfield County, VA, 6.625%, (Series B), 1/1/2005 AAA 327,387
------------------------------------------------------
1,500,000 Chesterfield County, VA, Public Improvement, 5.00%,
3/1/2006 AA 1,429,950
------------------------------------------------------
250,000 Chesterfield County, VA, 5.60% GO Bond, 7/15/2006 AA+ 252,115
------------------------------------------------------
300,000 Chesterfield County, VA, 5.70% GO Bond, 7/15/2007 AA+ 302,760
------------------------------------------------------
105,000 Chesterfield, VA, IDA, 5.45%, 4/1/2007 AA 102,050
------------------------------------------------------
300,000 Chesterfield, VA, Water & Sewer System Authority,
6.10% GO Bond, 11/1/2004 AA 317,985
------------------------------------------------------
300,000 Chesterfield, VA, Water & Sewer System Authority,
4.95%, 5/1/2006 A 276,825
------------------------------------------------------
1,000,000 Covington Allegheny County, 6.20%, 4/1/2007 A-1 1,002,650
------------------------------------------------------
345,000 Culpeper, VA, 5.60%, 2/1/2007 A 342,478
------------------------------------------------------
270,000 Culpeper, VA, 5.30%, 4/1/2007 AAA 259,697
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 210,000 Culpeper, VA, 5.375%, 4/1/2008 AAA $ 201,327
------------------------------------------------------
255,000 Culpeper, VA, 5.30%, 6/1/2008 A 244,915
------------------------------------------------------
200,000 Danville, VA, 6.50%, 2/1/2005 A 214,124
------------------------------------------------------
500,000 Danville, VA, 6.20%, 5/1/2006 A 521,145
------------------------------------------------------
200,000 Fairfax County, VA, 6.00%, (Series B), 5/1/2006 AAA 208,502
------------------------------------------------------
400,000 Fairfax County, VA, 5.75%, (Series C), 10/1/2006 AAA 412,000
------------------------------------------------------
1,140,000 Fairfax County, VA, 5.30%, 11/15/2006 AAA 1,118,351
------------------------------------------------------
395,000 Fairfax County, VA, IDA, 6.50%, 8/15/2007 AA 431,490
------------------------------------------------------
500,000 Fairfax County, VA, 5.75%, (Series C), 10/1/2007 AAA 512,760
------------------------------------------------------
1,505,000 Fairfax County, VA, 5.40%, 11/15/2007 AAA 1,476,465
------------------------------------------------------
1,000,000 Fairfax County, VA, 6.00%, (Series B), 5/1/2008 AAA 1,035,540
------------------------------------------------------
500,000 Fairfax County, VA, IDA, 5.00%, 8/15/2008 AA- 450,465
------------------------------------------------------
375,000 Fairfax County, VA, 5.75%, 10/1/2008 AAA 381,653
------------------------------------------------------
250,000 Fairfax County, VA, Water & Sewer System Authority,
5.05%, 4/1/2009 AA- 226,953
------------------------------------------------------
390,000 Falls Church, VA, 5.25% GO Bond, 8/1/2007 A+ 371,631
------------------------------------------------------
370,000 Falls Church, VA, 5.30% GO Bond, 8/1/2008 A+ 350,061
------------------------------------------------------
800,000 Fauquier County, VA, 5.40% GO Bond, 7/15/2006 AA 792,848
------------------------------------------------------
800,000 Fauquier County, VA, 5.45% GO Bond, 7/15/2007 AA 789,520
------------------------------------------------------
300,000 Fauquier County, VA, 5.50% GO Bond, 7/15/2008 AA 294,447
------------------------------------------------------
400,000 Fredericksburg-Winchester Service Authority, VA,
5.60%, (AMBAC Insured), 10/1/2005 AAA 404,052
------------------------------------------------------
250,000 Fredericksburg, VA, 5.00%, 7/15/2007 AA- 233,822
------------------------------------------------------
195,000 Hampton, VA, Public Improvement & Refunding, 6.75%,
1/1/2005 AA 213,248
------------------------------------------------------
1,000,000 Hampton Roads, VA, College, 6.30%, 11/15/2002 A- 1,044,610
------------------------------------------------------
500,000 Hampton Roads, VA, College, 6.50%, 11/15/2005 A- 522,865
------------------------------------------------------
350,000 Hampton Roads, VA, Public Improvement, 5.00%,
10/1/2007 AA 324,653
------------------------------------------------------
1,000,000 Hampton Roads, VA, Public Improvement, 5.10%,
10/1/2008 AA 925,050
------------------------------------------------------
250,000 Henrico County, VA, Development Authority, 5.70%,
8/15/2005 AAA 251,340
------------------------------------------------------
500,000 Henrico County, VA, Development Authority, 5.20%,
8/15/2006 AAA 475,430
------------------------------------------------------
100,000 Henrico County, VA, Development Authority, 5.80%,
8/15/2006 AAA 100,611
------------------------------------------------------
1,000,000 Henrico County, VA, Public Improvement & Refunding,
5.20% GO Bond, 1/15/2007 AAA 964,610
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 1,000,000 Henrico County, VA, Public Improvement & Refunding,
5.20%, 1/15/2008 AAA $ 953,520
------------------------------------------------------
405,000 Herndon, VA, 5.00%, 12/1/2008 A1 369,886
------------------------------------------------------
500,000 James Madison University, VA, 5.375%, 6/1/2009 AAA 468,645
------------------------------------------------------
595,000 Leesburg, VA, 5.40% GO Bond, 8/1/2005 A 587,021
------------------------------------------------------
200,000 Leesburg, VA, 5.50% GO Bond, 8/1/2006 A 197,344
------------------------------------------------------
500,000 Leesburg, VA, Utility System Revenue, 6.10%, 7/1/2007 AAA 509,090
------------------------------------------------------
125,000 Lexington, VA, 6.60% GO Bond, 12/1/2007 A 131,232
------------------------------------------------------
200,000 Loudoun County, VA, Sanitation Authority, 6.00%,
1/1/2003 AAA 209,396
------------------------------------------------------
250,000 Loudoun County, VA, IDA, 6.250%, 5/15/2006 A1 256,193
------------------------------------------------------
1,000,000 Loudoun County, VA, Public Improvement & Refunding,
5.50%, 10/1/2007 AA- 985,960
------------------------------------------------------
600,000 Loudoun County, VA, IDA, 5.50%, 6/1/2008 AA 574,338
------------------------------------------------------
1,000,000 Loudoun County, VA, Public Improvement, 5.00% GO
Bonds, 10/1/2008 AA- 922,270
------------------------------------------------------
500,000 Loudoun County, VA, 5.10% GO Bonds, (Series A),
10/1/2009 AA- 460,205
------------------------------------------------------
440,000 Lynchburg, VA, 5.00%, 4/1/2004 AA 425,546
------------------------------------------------------
1,850,000 Lynchburg, VA, 5.25%, 4/1/2007 AA 1,774,279
------------------------------------------------------
395,000 Lynchburg, VA, IDA, 5.10%, 9/1/2003 A 380,985
------------------------------------------------------
500,000 Lynchburg, VA, IDA, 5.30%, 9/1/2005 A 479,255
------------------------------------------------------
500,000 Lynchburg, VA, IDA, 5.40%, 9/1/2006 A 478,080
------------------------------------------------------
200,000 Lynchburg, VA, Public Improvement, 5.50%, 3/1/2005 AA 200,152
------------------------------------------------------
450,000 Lynchburg, VA, Public Improvement, 5.00%, 4/1/2009 AA 408,380
------------------------------------------------------
500,000 Lynchburg, VA, 5.60% GO Bond, 3/1/2006 AA 500,780
------------------------------------------------------
500,000 Lynchburg, VA, 5.80% GO Bond, 3/1/2008 AA 499,025
------------------------------------------------------
250,000 Metropolitan Washington DC, 5.10%, 10/1/2007 AAA 233,105
------------------------------------------------------
750,000 Metropolitan Washington DC, 5.20%, 10/1/2008 AAA 696,548
------------------------------------------------------
200,000 Nelson County, VA, 5.10%, 7/1/2006 AAA 188,830
------------------------------------------------------
250,000 Nelson County, VA, 5.20%, 7/1/2007 AAA 235,355
------------------------------------------------------
1,835,000 Newport News, VA, 6.10%, 6/1/2008 AA 1,892,325
------------------------------------------------------
500,000 Newport News, VA, 5.30% GO Bond, 11/1/2005 AA- 490,230
------------------------------------------------------
1,500,000 Newport News, VA, 5.20% GO Bond, 6/1/2008 AA- 1,409,595
------------------------------------------------------
350,000 Newport News, VA, 5.90%, (Series A), 6/1/2005 AA 360,531
------------------------------------------------------
500,000 Newport News, VA, 5.80%, (Series A), 7/1/2007 AA 505,015
------------------------------------------------------
725,000 Newport News, VA, 5.80%, (Series B), 7/1/2007 AA- 726,254
------------------------------------------------------
480,000 Newport News, VA, 5.40%, (Series B), 11/1/2007 AA 465,600
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 1,500,000 Newport News, VA, 5.45%, (Series B), 11/1/2008 AA- $ 1,447,290
------------------------------------------------------
345,000 Newport News, VA, 5.45%, (Series B), 11/1/2008 AA 332,877
------------------------------------------------------
1,000,000 Norfolk, VA, 5.25% GO Bond, 2/1/2006 AA 974,990
------------------------------------------------------
500,000 Norfolk, VA, 5.00% GO Bond, 6/1/2006 AA 475,865
------------------------------------------------------
1,000,000 Norfolk, VA, 5.25% GO Bond, 6/1/2008 AA 952,840
------------------------------------------------------
500,000 Norfolk, VA, 6.00%, (Series A), 2/1/2008 AA 511,295
------------------------------------------------------
250,000 Norfolk, VA, IDA, 6.60%, 6/1/2002 (AMBAC Insured) AAA 270,005
------------------------------------------------------
250,000 Norfolk, VA, IDA, 6.75%, 6/1/2004 (AMBAC Insured) AAA 274,063
------------------------------------------------------
750,000 Norfolk, VA, IDA, 5.10%, 6/1/2007 (AMBAC Insured) AAA 698,783
------------------------------------------------------
300,000 Penisula Port Authority of VA, (Riverside Health
Systems), 6.00%, 7/1/2001 AA 312,108
------------------------------------------------------
250,000 Penisula Port Authority of VA, (Riverside Health
Systems), 6.10%, 7/1/2002 AA 260,655
------------------------------------------------------
1,000,000 Peterburg, VA, Hospital Authority, 5.90%, 7/1/2002 A 1,008,980
------------------------------------------------------
950,000 Portsmouth, VA, 5.90%, 11/1/2001 AA- 990,574
------------------------------------------------------
300,000 Portsmouth, VA, 6.40%, 11/1/2003 AA- 321,966
------------------------------------------------------
500,000 Portsmouth, VA, 5.45%, GO Bond, 8/1/2007 AA- 484,760
------------------------------------------------------
500,000 Prince George County, VA, Public Improvement &
Refunding, 5.60%, 8/1/2008 A 491,265
------------------------------------------------------
500,000 Prince William County, VA, IDA, 5.50%, 7/15/2002 A 491,905
------------------------------------------------------
1,000,000 Prince William County, VA, Water & Sewer System
Authority, 4.75%, (FGIC Insured), 7/1/2007 AAA 891,810
------------------------------------------------------
1,000,000 Prince William County, VA, 5.00%, (Series C), 8/1/2007 AA 938,710
------------------------------------------------------
1,000,000 Prince William County, VA, 5.10%, (Series C), 8/1/2008 AA 937,030
------------------------------------------------------
500,000 Richmond, VA, 6.30%, (Series B), 1/15/2004 AA 531,825
------------------------------------------------------
160,000 Richmond, VA, 6.40%, (Series A), 1/15/2005 AA 170,256
------------------------------------------------------
625,000 Richmond, VA, 6.40%, (Series B), 1/15/2005 AA 665,063
------------------------------------------------------
140,000 Richmond, VA, 6.25%, (Series A), 7/15/2005 AA 148,945
------------------------------------------------------
250,000 Richmond, VA, 6.00%, (Series B), 7/15/2005 AA 261,095
------------------------------------------------------
200,000 Richmond, VA, 6.60%, (Series A), 1/15/2007 AA 211,860
------------------------------------------------------
250,000 Richmond, VA, 6.60%, (Series B), 1/15/2007 AA 267,317
------------------------------------------------------
250,000 Richmond, VA, Metropolitan Authority, 5.90%, (Series
B), (FGIC Insured), 7/15/2003 AAA 259,198
------------------------------------------------------
500,000 Richmond, VA, Metropolitan Authority, 6.05% (Series
B), (FGIC Insured), 7/15/2005 AAA 519,345
------------------------------------------------------
760,000 Richmond, VA, Public Improvement, 5.30%, 1/15/2006 AA 744,291
------------------------------------------------------
500,000 Richmond, VA, Public Improvement, 5.45%, 7/15/2008 AA 484,995
------------------------------------------------------
500,000 Rivanna Water & Sewer Authority, VA, 4.75%, 10/1/2008 Aa 439,590
------------------------------------------------------
295,000 Roanoke, VA, 6.25%, 8/1/2006 AA 311,018
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 500,000 Roanoke, VA, 5.50%, 6/1/2007 AA $ 495,800
------------------------------------------------------
600,000 Roanoke, VA, 5.55%, 7/1/2008 AA 592,422
------------------------------------------------------
750,000 Roanoke, VA, IDA, 6.90%, 7/1/99 A+ 808,912
------------------------------------------------------
605,000 Roanoke, VA, IDA, 5.80%, 7/1/2005 A+ 608,648
------------------------------------------------------
1,185,000 Roanoke, VA, IDA, 6.00%, 7/1/2007 A1 1,186,659
------------------------------------------------------
1,000,000 Roanoke, VA, Public Improvement, 4.70% GO Bond,
8/1/2005 AA 925,940
------------------------------------------------------
1,670,000 Roanoke, VA, Public Improvement, 5.00%, 8/1/2009 Aa 1,527,449
------------------------------------------------------
100,000 Roanoke, VA, Water & Sewer System Authority 6.10% GO
Bond, (Series 1991), 6/1/2004 AA 105,369
------------------------------------------------------
100,000 Roanoke, VA, Water & Sewer System Authority 6.20% GO
Bond, (Series 1991), 6/1/2005 AA 105,715
------------------------------------------------------
100,000 Roanoke, VA, Water & Sewer System Authority 6.30% GO
Bond, (Series 1991), 6/1/2006 AA 105,837
------------------------------------------------------
150,000 Salem, VA, 6.70% GO Bond, 6/1/2004 AA 158,032
------------------------------------------------------
250,000 South Boston, VA, 6.70%, (AMBAC Insured), 7/1/2005 AAA 266,155
------------------------------------------------------
500,000 Southeastern, VA, Public Service Authority, 6.90%,
7/1/2002 (BIG Insured) AAA 551,540
------------------------------------------------------
175,000 Southeastern, VA, Public Service Authority, 7.00%,
7/1/2003 (BIG Insured) AAA 193,839
------------------------------------------------------
500,000 Southeastern, VA, Public Service Authority, 5.10%,
7/1/2008 (MBIA Insured) AAA 465,865
------------------------------------------------------
150,000 Spotsylvania County, VA, Public Improvement, 6.40%,
3/1/2006 A+ 161,656
------------------------------------------------------
605,000 Spotsylvania County, VA, Public Improvement, 5.70%,
7/15/2007 A+ 599,936
------------------------------------------------------
250,000 Stafford County, VA, Water & Sewer, 5.80% GO Bond,
8/1/2000 A1 257,025
------------------------------------------------------
100,000 Stafford County, VA, 6.50% GO Bond, 6/1/2003 A+ 105,858
------------------------------------------------------
100,000 Stafford County, VA, 6.60% GO Bond, 6/1/2004 A+ 106,016
------------------------------------------------------
425,000 Suffolk, VA, 5.40%, 8/1/2004 A 419,016
------------------------------------------------------
500,000 Suffolk, VA, Public Improvement & Refunding, 5.70% GO
Bond, 8/1/2007 A 494,440
------------------------------------------------------
150,000 University of Virginia Hospital, 6.90%, (Series E),
6/1/2003 A+ 160,813
------------------------------------------------------
100,000 University of Virginia, 5.00%, (Series A), 6/1/2007 AA+ 93,219
------------------------------------------------------
300,000 Upper Occoquan, VA, Sewer Authority, 5.45%, (AMBAC
Insured), 7/1/2003 AAA 302,574
------------------------------------------------------
300,000 Vienna, VA, Public Improvement, 5.25%, 8/1/2007 AA 289,110
------------------------------------------------------
300,000 Vienna, VA, Public Improvement, 5.30%, 8/1/2008 AA 287,196
------------------------------------------------------
900,000 Virginia Beach, VA, 6.00%, 2/1/2006 AA 935,127
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 295,000 Virginia Beach, VA, Development Authority, 6.30%,
11/1/2004 AA $ 309,579
------------------------------------------------------
300,000 Virginia Beach, VA, Water & Sewer, 6.125%, 2/1/2003 A+ 317,274
------------------------------------------------------
500,000 Virginia Beach, VA, 5.70% GO Bond, 7/15/2006 AA 505,770
------------------------------------------------------
600,000 Virginia Beach, VA, 5.30% GO Bond, 7/15/2007 AA 579,414
------------------------------------------------------
500,000 Virginia Beach, VA, 5.80% GO Bond, 7/15/2007 AA 506,520
------------------------------------------------------
665,000 Virginia Beach, VA, 5.99% GO Bond, 7/15/2008 AA 674,656
------------------------------------------------------
250,000 Virginia Beach, VA, 6.90% GO Bond, (Series A),
6/1/2004 AA 277,150
------------------------------------------------------
350,000 Virginia Beach, VA, 6.50% GO Bond, (Series C),
8/1/2005 AA 376,435
------------------------------------------------------
500,000 Virginia Beach, VA, 5.40% GO Bond, (Series A),
7/15/2007 AA 487,925
------------------------------------------------------
200,000 Virginia Beach, VA, 6.50% GO Bond, (Series C),
8/1/2007 AA 213,040
------------------------------------------------------
500,000 Virginia Beach, VA, 5.50% GO Bond, (Series A),
7/15/2008 AA 487,880
------------------------------------------------------
250,000 Virginia College, 6.40%, (University of Richmond)
11/1/2022 AA 272,170
------------------------------------------------------
150,000 Virginia College Building Authority, VA, (Washington &
Lee), Revenue Bonds, 7.00%, 1/1/2004 AA- 162,755
------------------------------------------------------
1,000,000 Virginia College Building Authority, VA, (Hampton
University), Revenue Bonds, 5.50%, 4/1/2005 A+ 976,550
------------------------------------------------------
1,000,000 Virginia State, 6.50%, 6/1/2006 AAA 1,083,920
------------------------------------------------------
300,000 Virginia State, 5.70%, 6/1/2007 AAA 304,833
------------------------------------------------------
1,000,000 Virginia State, 5.20%, 6/1/2008 AAA 958,320
------------------------------------------------------
250,000 Virginia State, 6.50%, (Series A), 6/1/2005 AAA 270,980
------------------------------------------------------
500,000 Virginia State, 5.70%, (Series A), 6/1/2008 AAA 504,890
------------------------------------------------------
520,000 Virginia State, Public Improvement, 5.60%, 6/1/2007 AAA 524,248
------------------------------------------------------
1,000,000 Virginia State, Public Improvement, 5.10%, 12/1/2007 AAA 958,130
------------------------------------------------------
450,000 Virginia State HDA, 6.20%, 1/1/2001 AA 466,380
------------------------------------------------------
500,000 Virginia State HDA, 5.45%, (Series C), 1/1/2002 Aa 498,705
------------------------------------------------------
385,000 Virginia State HDA, 6.05%, 11/1/2006 AA 391,595
------------------------------------------------------
410,000 Virginia State HDA, 6.10%, 11/1/2007 AA 416,359
------------------------------------------------------
615,000 Virginia State, Higher Education, 5.75%, 6/1/2008 AAA 623,450
------------------------------------------------------
280,000 Virginia State Multifamily, HDA, 6.25%, (Series D),
11/1/2000 A1 291,920
------------------------------------------------------
100,000 Virginia State Multifamily, HDA, 7.15%, (Series D),
11/1/2002 A1 106,720
------------------------------------------------------
500,000 Virginia State Public Building Authority, 5.625%,
8/1/2002 AA 512,145
------------------------------------------------------
300,000 Virginia State Public Building Authority, 5.80%,
8/1/2002 AA 310,791
------------------------------------------------------
360,000 Virginia State Public Building Authority, 6.60%,
8/1/2004 AA 389,117
------------------------------------------------------
400,000 Virginia State Public Building Authority, 5.50%,
8/1/2006 AA 395,560
------------------------------------------------------
320,000 Virginia State Public Building Authority, 5.25%,
1/1/2007 AA 306,208
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 755,000 Virginia State Public Building Authority, 5.60%,
8/1/2007 AA $ 747,948
------------------------------------------------------
250,000 Virginia State Public Building Authority, 6.25%,
1/1/2008 AA 259,013
------------------------------------------------------
1,500,000 Virginia State Public Building Authority, 5.40%,
8/1/2008 AA 1,439,190
------------------------------------------------------
1,310,000 Virginia State Public Building Authority, 5.25%,
(Series A), 8/1/2006 AA 1,266,049
------------------------------------------------------
1,350,000 Virginia State Public Building Authority, 5.30%,
(Series A), 1 /1 /2007 AA 1,297,849
------------------------------------------------------
830,000 Virginia State Public School Authority, 5.10%,
1/1/2005 AA 798,684
------------------------------------------------------
465,000 Virginia State Public School Authority, 5.90%,
1/1/2006 AA 475,788
------------------------------------------------------
600,000 Virginia State Public School Authority, 5.75%,
1/1/2008 AA 598,242
------------------------------------------------------
500,000 Virginia State Public School Authority, 5.30%,
(Series B), 1/1/2002 AA 501,215
------------------------------------------------------
400,000 Virginia State Public School Authority, 5.125%,
(Series B), 1/1/2006 AA 382,768
------------------------------------------------------
200,000 Virginia State Resource Authority, Water & Sewer
System Authority, 6.70%, 10/1/2004 AA 214,370
------------------------------------------------------
250,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.75%, 10/1/2005 AA 253,718
------------------------------------------------------
300,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.85%, 10/1/2006 AA 304,674
------------------------------------------------------
275,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.10%, 10/1/2007 Aa 258,836
------------------------------------------------------
250,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.90%, 5/1/2007 AA 253,400
------------------------------------------------------
175,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.35%, 10/1/2007 AA 168,117
------------------------------------------------------
300,000 Virginia State Resource Authority, Solid Waste
Disposal System 5.10%, 5/1/2006 AA 284,862
------------------------------------------------------
335,000 Virginia State Resource Authority, Solid Waste
Disposal System 5.45%, 5/1/2006 AA 328,524
------------------------------------------------------
600,000 Virginia State, Transportation, 6.00%, 4/1/2004 AA 622,836
------------------------------------------------------
550,000 Virginia State, Transportation, 6.00%, 4/1/2005 AA 575,240
------------------------------------------------------
500,000 Virginia State, Transportation, 5.25%, 5/15/2006 AA 482,155
------------------------------------------------------
1,800,000 Virginia State, Transportation, 6.00%, 4/1/2007 AA 1,862,910
------------------------------------------------------
1,305,000 Virginia State, Transportation, 5.10%, 5/15/2007 AA 1,225,212
------------------------------------------------------
1,000,000 Virginia State, Transportation, 5.375%, 5/15/2007 AA 965,700
------------------------------------------------------
500,000 Virginia State, Transportation, 5.25%, 5/15/2008 AA 475,545
------------------------------------------------------
750,000 Virginia State, Transportation, 5.40%, 5/15/2008 AA 717,803
------------------------------------------------------
</TABLE>
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
- --------------------------------------------------------------------
$ 500,000 Virginia Commonwealth University, Medical College,
4.45%, 7/1/2003 A1 $ 464,010
------------------------------------------------------
300,000 Virginia State University, 5.90%, 7/1/2006 A+ 300,000
------------------------------------------------------
250,000 Warrenton, VA, 5.50%, 9/1/2007 A1 245,570
------------------------------------------------------
100,000 Wayneboro, VA, 5.45%, 4/1/2007 A1 100,257
------------------------------------------------------
540,000 Wayneboro, VA, 5.40%, 2/1/2009 A1 514,015
------------------------------------------------------
495,000 Wayneboro, VA, 4.70% GO Bond, 2/1/2006 A1 449,599
------------------------------------------------------
390,000 Wayneboro, VA, 5.35% GO Bond, 2/1/2006 A1 381,943
------------------------------------------------------
385,000 Wayneboro, VA, 4.85% GO Bond, 2/1/2007 A1 351,532
------------------------------------------------------
215,000 West Point, VA, 4.70%, 6/1/2007 A 194,839
------------------------------------------------------
225,000 West Point, VA, 4.80%, 6/1/2008 A 203,580
------------------------------------------------------
185,000 West Point, VA, 6.65% GO Bond, 6/1/2006 A 201,953
------------------------------------------------------
500,000 Winchester, VA, 5.20%, 1/15/2006 AA 486,645
------------------------------------------------------
150,000 Winchester, VA, 6.60%, 3/1/2006 AA 161,619
------------------------------------------------------ ------------
TOTAL LONG--TERM MUNICIPAL SECURITIES
(IDENTIFIED COST, $117,000,529) 115,112,609
------------------------------------------------------ ------------
MUTUAL FUND SHARES--0.1%
- --------------------------------------------------------------------
3,181 Goldman Sachs Institutional Tax-Exempt 3,181
------------------------------------------------------
3,181 Municipal Funds for Temporary Investment 3,181
------------------------------------------------------ ------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE)
(NOTE 2A) 6,362
------------------------------------------------------ ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $117,006,891) $115,118,971
------------------------------------------------------ ------------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $117,006,891. The
net unrealized depreciation of investments on a federal tax basis amounts to
$1,887,920, which is comprised of $1,388,192 appreciation and $3,276,112
depreciation at March 31, 1994.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
BIG -- Bond Investors Guaranty
FGIC -- Financial Guaranty Insurance Corporation
GO -- General Obligation
HDA -- Housing Development Authority
IDA -- Industrial Development Authority
LOC -- Letter(s) of Credit
MBIA -- Municipal Bond Insurance Assurance
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($114,616,966) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
MARYLAND MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--101.1%
- -------------------------------------------------------------------------
$ 555,000 Annapolis, MD, Public Improvement, 5.90%, GO Bonds,
7/15/2005 AA $ 574,847
-------------------------------------------------------
500,000 Anne Arundel County MD, Consolidated General
Improvement, 5.70%, 7/15/2003 AA+ 514,475
-------------------------------------------------------
100,000 Anne Arundel County MD, Consolidated General
Improvement, 6.50%, 4/15/2007 AA+ 106,239
-------------------------------------------------------
670,000 Anne Arundel County MD, 5.125%, (Solid Waste Project),
7/15/2007 AA+ 635,575
-------------------------------------------------------
585,000 Anne Arundel County MD, Consolidated General
Improvement, Water & Sewer, 4.80%, 2/1/2008 AA+ 525,190
-------------------------------------------------------
250,000 Baltimore County MD, Consolidated Public Improvement,
6.40%, (Series A)/(FGIC Insured), 10/15/2001 AAA 271,100
-------------------------------------------------------
250,000 Baltimore County MD, Consolidated Public Improvement,
6.25%, (Series C)/(FGIC Insured), 10/15/2003 AAA 268,565
-------------------------------------------------------
300,000 Baltimore County MD, Consolidated Public Improvement,
6.125%, 7/1/2008 Aaa 312,600
-------------------------------------------------------
1,000,000 Baltimore County MD, Revenue Authority, Refunding
Revenue Bonds, 5.25%, 7/1/2008 A 931,450
-------------------------------------------------------
400,000 Baltimore County MD, Revenue Authority, Refunding
Revenue Bonds, 4.90%, 10/1/2008 Aa-1 362,284
-------------------------------------------------------
395,000 Baltimore County MD, 63rd Met District, 5.80%, 7/1/2003 Aaa 411,013
-------------------------------------------------------
500,000 Baltimore County MD, 63rd Met District, 6.10%, 7/1/2006 Aaa 524,415
-------------------------------------------------------
850,000 Baltimore County MD, 63rd Met District, 6.125%,
7/1/2007 Aaa 887,051
-------------------------------------------------------
500,000 Baltimore MD, CTFS Partner, 5.50% (Series 1993B)/(MBIA
Insured), 4/1/2007 AAA 487,770
-------------------------------------------------------
500,000 Baltimore MD, Consolidated Public Improvement, 5.30%,
(Series A)/(AMBAC Insured), 10/15/2007 AAA 478,565
-------------------------------------------------------
1,000,000 Baltimore MD, Consolidated Public Improvement, 5.375%,
(Series A)/(AMBAC Insured), 10/15/2008 AAA 951,060
-------------------------------------------------------
250,000 Bel Air MD, CTFS Partner Capital Refunding Notes,
5.40%, (Series 1993)/(Capital Guaranty), 6/1/2007 AAA 241,527
-------------------------------------------------------
250,000 Bel Air MD, CTFS Partner Capital Refunding Notes,
5.40%, (Series 1993)/(Capital Guaranty), 12/1/2007 AAA 240,858
-------------------------------------------------------
250,000 Bel Air MD, CTFS Partner Capital Refunding Notes 5.50%,
(Series 1993)/(Capital Guaranty), 6/1/2008 AAA 241,045
-------------------------------------------------------
250,000 Bel Air MD, CTFS Partner Capital Refunding Notes,
5.50%, (Series 1993)/(Capital Guaranty), 12/1/2008 AAA 240,487
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 2,000,000 Calvert County MD, Public Improvement, Refunding
Revenue Bonds, 4.875%, 7/15/2008 Aa $ 1,791,260
-------------------------------------------------------
125,000 Carroll County MD, Public Improvement, Refunding
Revenue Bonds, 5.75%, 12/1/2005 AA 127,993
-------------------------------------------------------
250,000 Carroll County MD, Public Improvement, Refunding
Revenue Bonds, 5.875%, 12/1/2006 Aaa 263,040
-------------------------------------------------------
200,000 Carroll County MD, Public Improvement, Refunding
Revenue Bonds, 6.00%, 12/1/2007 Aaa 211,864
-------------------------------------------------------
500,000 Cecil County, MD, Public Improvement, 5.10%, (FGIC
Insured), 12/1/2007 AAA 476,300
-------------------------------------------------------
500,000 Charles County MD, Public Improvement, 5.00%, 6/1/2009 Aa 454,795
-------------------------------------------------------
250,000 Cumberland, MD, Public Improvement, 4.90%, (Series A)/
(FGIC Insured), 5/1/2008 AAA 229,663
-------------------------------------------------------
300,000 Frederick County MD, 5.55%, 7/1/2007 AA- 301,134
-------------------------------------------------------
250,000 Frederick County MD, 5.20%, (Series B), 5/1/2008 Aa 239,627
-------------------------------------------------------
200,000 Frederick County MD, Refunding Revenue Bonds, 6.125%,
(FGIC Insured), 12/1/2006 AAA 210,132
-------------------------------------------------------
400,000 Frederick County MD, Refunding Revenue Bonds, 5.65%,
7/1/2008 Aa 391,916
-------------------------------------------------------
500,000 Gaithersburg, MD, EDR, 5.00%, (Asbury Methodist
Church), 1/1/2003 A 485,550
-------------------------------------------------------
700,000 Gaithersburg, MD, EDR, 5.10%, (Asbury Methodist
Church), 1/1/2004 A 669,389
-------------------------------------------------------
250,000 Gaithersburg, MD, EDR, 5.20%, (Asbury Methodist
Church), 1/1/2005 A 239,245
-------------------------------------------------------
250,000 Harford County MD, GO Bonds, 6.25%, 12/1/2006 Aa 262,412
-------------------------------------------------------
100,000 Harford County MD, Public Improvement, 5.50%, 9/1/2005 Aa 100,309
-------------------------------------------------------
750,000 Harford County MD, Public Improvement, 5.70%, 9/1/2007 Aa 753,465
-------------------------------------------------------
1,000,000 Harford County MD, Public Improvement, Refunding
Revenue Bonds, 4.80%, 12/1/2008 Aa 893,850
-------------------------------------------------------
500,000 Howard County MD, 5.25%, 8/15/2005 AA+ 490,740
-------------------------------------------------------
1,350,000 Howard County MD, Public Improvement, Refunding Revenue
Bonds, 5.25%, (Series A), 8/15/2007 AA+ 1,297,242
-------------------------------------------------------
375,000 Laurel MD, Refunding Revenue Bonds, 6.60%, (Series A)/
(MBIA Insured), 7/1/2003 AAA 409,121
-------------------------------------------------------
300,000 Maryland State, Community Development Administration,
SFM, 5.20%, 4/1/2003 Aa 293,262
-------------------------------------------------------
120,000 Maryland State, Community Development Administration,
SFM, 6.40%, 4/1/2004 Aa 124,712
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 1,000,000 Maryland National Capital Parks & Planning Commission,
6.10%, 7/1/2006 AA $ 1,048,030
-------------------------------------------------------
100,000 Maryland State Housing & Community Development 6.875%,
(Series A)/(AMBAC Insured), 6/1/2006 AAA 108,530
-------------------------------------------------------
200,000 Maryland State Department of Transportation, 6.60%,
11/1/2000 AA 215,538
-------------------------------------------------------
250,000 Maryland State Department of Transportation, 5.40%,
7/15/2004 AA 248,225
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, Refunding
Revenue Bonds, 5.30%, (Northwest Hospital Center)/
(AMBAC Insured), 7/1/2006 AAA 483,770
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, 5.30%,
(Greater Baltimore Medical Center)/(FGIC Insured),
7/1/2006 AAA 483,770
-------------------------------------------------------
600,000 Maryland State Health & Higher Education, Refunding
Revenue Bonds, 5.10%, (Suburban Hospital), 7/1/2007 A-1 550,032
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, 5.35%,
(Greater Baltimore Medical Center)/(FGIC Insured),
7/1/2007 AAA 480,235
-------------------------------------------------------
300,000 Maryland State Health & Higher Education, 6.00%, (North
Arundel Hospital)/(MBIA Insured), 7/1/2007 AAA 306,363
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, 5.10%,
(Surburban Hospital), 7/1/2008 A-1 455,465
-------------------------------------------------------
1,000,000 Maryland State Health & Higher Education, 5.30%,
(Francis Scott Key Medical Center)/(FGIC Insured),
7/1/2008 AAA 943,530
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, 5.10%,
(Surburban Hospital), 7/1/2009 A-1 449,620
-------------------------------------------------------
150,000 Maryland Water Quality Revenue Financing Revolving Loan
Fund, 6.00%, (Series B), 9/1/2001 AA 157,205
-------------------------------------------------------
100,000 Maryland Water Quality Revenue Financing Revolving Loan
Fund, 6.85%, (Series A), 9/1/2004 AA 109,462
-------------------------------------------------------
750,000 Maryland State & Local Facility, 5.50%, 2/1/2008 AAA 746,347
-------------------------------------------------------
1,000,000 Maryland State, 6.70%, (Series 2), 7/15/2001 AAA 1,103,320
-------------------------------------------------------
250,000 Maryland State, 6.50%, (Series 1), 7/1/2002 AAA 271,553
-------------------------------------------------------
200,000 Maryland State, 6.40%, (Series 3), 7/15/2003 AAA 215,704
-------------------------------------------------------
200,000 Maryland State, 6.00%, (Series 4), 10/15/2005 AAA 210,752
-------------------------------------------------------
400,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, 6.625%, 7/1/2003 AAA 442,320
-------------------------------------------------------
500,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, 5.70%, 7/1/2005 A+ 506,165
-------------------------------------------------------
850,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, 5.80%, 7/1/2006 A+ 874,718
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 300,000 Montgomery County MD, Housing Opportunity Revenue, SFM,
6.15%, 7/1/2002 Aa $ 310,749
-------------------------------------------------------
115,000 Montgomery County MD, Housing Opportunity Revenue,
Multi--Family Mortgage, 6.90%, 7/1/2004 A 120,587
-------------------------------------------------------
100,000 Montgomery County MD, Housing Opportunity Revenue, SFM,
6.10%, 7/1/2006 Aa 100,746
-------------------------------------------------------
355,000 Montgomery County MD, Housing Opportunity Revenue,
Consolidated SFM, 7.125%, (Series C), 7/1/2006 Aa 369,477
-------------------------------------------------------
250,000 Montgomery County MD, Consolidated Public Improvement,
Refunding Revenue Bonds, 6.90%, (Series A), 4/1/2000 AAA 275,720
-------------------------------------------------------
520,000 Montgomery County MD, Public Improvement, Refunding
Revenue Bonds, 5.75%, (Series A), 7/1/2006 AAA 525,642
-------------------------------------------------------
700,000 Montgomery County MD, Public Improvement, Refunding
Revenue Bonds, 5.80%, (Series A), 7/1/2007 AAA 712,901
-------------------------------------------------------
300,000 Montgomery County MD, Public Improvement, 6.125%,
(Series B), 10/1/2007 AAA 321,522
-------------------------------------------------------
1,000,000 Ocean City MD, 5.50%, 3/15/2009 AAA 967,330
-------------------------------------------------------
325,000 Ocean City MD, Refunding Revenue Bonds, 6.00%, (MBIA
Insured), 11/1/2003 AAA 345,924
-------------------------------------------------------
210,000 Ocean City MD, Refunding Revenue Bonds, 6.10%, (MBIA
Insured), 11/1/2004 AAA 224,553
-------------------------------------------------------
380,000 Prince Georges County MD, Justice Center Parking
Facility, Refunding Revenue Bonds, 6.10%, 5/1/2001 AA- 398,533
-------------------------------------------------------
250,000 Prince Georges County MD, Refunding Revenue Bonds,
5.10%, (Cherry Hill Apartments), 3/20/2002 AAA 245,505
-------------------------------------------------------
250,000 Prince Georges County MD, Refunding Revenue Bonds,
5.20%, (Cherry Hill Apartments), 3/20/2003 AAA 245,085
-------------------------------------------------------
560,000 Prince Georges County MD, 5.95%, (Maryland Local
Government Trust), 8/1/2007 Aa 568,579
-------------------------------------------------------
200,000 Prince Georges County MD, Refunding Revenue Bonds,
6.00%, (Series A)/(MBIA Insured), 3/1/2008 AAA 202,070
-------------------------------------------------------
300,000 Prince Georges County MD, Stormwater Management, 5.30%,
3/15/2006 AA 289,941
-------------------------------------------------------
500,000 Prince Georges County MD, Stormwater Management, 5.50%,
3/15/2008 AA 483,910
-------------------------------------------------------
500,000 Prince Georges County MD, Public Improvement, Refunding
Revenue Bonds, 5.25%, 10/1/2008 AA- 470,475
-------------------------------------------------------
1,725,000 Rockville, MD, Refunding Revenue GO Bonds, 4.90%,
4/15/2007 AA+.... 1,590,226
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 150,000 St. Mary's College, 5.35%, (Series A)/(MBIA Insured),
9/1/2008 AAA $ 144,022
-------------------------------------------------------
250,000 St. Mary's County, MD, 4.60%, (St. Mary's Hospital),
9/1/2006 A+ 225,338
-------------------------------------------------------
90,000 Talbot County MD, Public Facility, 6.60%, 5/1/2007 A-1 95,610
-------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue,
6.40%, (Series B), 4/1/2006 AAA 543,330
-------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue,
5.30%, (Series A), 4/1/2007 AA+ 479,150
-------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue,
6.30%, (Series A), 2/1/2008 AA+ 514,255
-------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue,
5.375%, (Series A), 4/1/2008 AA+ 477,510
-------------------------------------------------------
1,000,000 University MD, Auxiliary Facility & Tuition Revenue,
Refunding Revenue Bonds, 4.90%, (Series C), 10/1/2008 AA+ 898,040
-------------------------------------------------------
1,000,000 University MD, Auxiliary Facility & Tuition Revenue,
Refunding Revenue Bonds, 5.00%, (Series C), 10/1/2009 AA+ 907,500
-------------------------------------------------------
350,000 Washington County MD, Refunding Revenue Bonds, 5.80%,
1/1/2001 A 361,792
-------------------------------------------------------
400,000 Washington County MD, Public Improvement, Refunding
Revenue Bonds, 5.25%, (FGIC Insured), 1/1/2007 AAA 383,456
-------------------------------------------------------
300,000 Washington County MD, Public Improvement, 5.75%,
1/1/2007 A+ 306,483
-------------------------------------------------------
475,000 Washington County MD, Public Improvement, 5.80%,
1/1/2008 A+ 483,697
-------------------------------------------------------
550,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 6.40%, 11/1/2004 Aa-l 596,541
-------------------------------------------------------
750,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 6.00%, 6/1/2005 Aa-1 762,480
-------------------------------------------------------
1,000,000 Washington Suburban Sanitation District MD, 5.25%,,
(Series F), 1/1/2007 A 958,640
-------------------------------------------------------
400,000 Washington Suburban Sanitation District MD, 6.10%,
6/1/2007 Aa-1 406,620
-------------------------------------------------------
200,000 Washington Suburban Sanitation District MD, 6.80%,
6/1/2007 Aa-1 221,184
-------------------------------------------------------
155,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 5.30%, (Series F)/(FGIC Insured),
1/1/2008 AAA 147,992
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
PRINCIPAL RATING:
AMOUNT MOODY'S
OR SHARES ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 300,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 5.30%, 6/1/2008 Aa-1 $ 283,953
-------------------------------------------------------
300,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 5.20%,. 12/1/2008 Aa-1 280,668
------------------------------------------------------- -----------
TOTAL LONG--TERM MUNICIPAL SECURITIES
(IDENTIFIED COST, $49,594,763) 48,581,527
------------------------------------------------------- -----------
MUTUAL FUND SHARES--0.0%
- -------------------------------------------------------------------------
17 Goldman Sachs Institutional Tax Exempt NR 17
-------------------------------------------------------
18 Municipal Fund for Temporary Investment NR 18
------------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE)
(NOTE 2A) 35
------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $49,594,798) $48,581,562+
------------------------------------------------------- -----------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $49,594,798. The
net unrealized depreciation of investments on a federal tax basis amounts to
$1,013,236, which is comprised of $556,861 unrealized appreciation and
$1,570,097 unrealized depreciation at March 31, 1994.
Note: The categories of investments are shown as a percentage of net assets
($48,049,291) at March 31, 1994.
* Please refer to the Statement of Additional Information for an explanation of
the credit ratings.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC --American Municipal Bond Assurance Corp.
FGIC --Financial Guaranty Insurance Co.
EDR --Economic Development Revenue Bonds
ETM(s) --Escrowed to Maturity
GO --General Obligation
MBIA --Municipal Bond Investors Assurance
SFM --Single Family Mortgage
</TABLE>
(See Notes which are an integral part of the Financial Statements)
TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
U.S. TREASURY BILLS--35.4%
- -------------------------------------------------------------------------------------
$101,000,000 4/7/94-7/28/94 $100,565,438
---------------------------------------------------------------- ------------
U.S. TREASURY NOTES--24.8%
- -------------------------------------------------------------------------------------
70,000,000 3.875%-8.25%, 4/30/94-2/28/95 70,382,922
---------------------------------------------------------------- ------------
*REPURCHASE AGREEMENTS--39.8%
- -------------------------------------------------------------------------------------
44,000,000 Kidder, Peabody & Co., Inc., 3.50%, dated 3/31/94, due 4/4/94 44,000,000
----------------------------------------------------------------
25,202,163 Nikko Securities Co. International, Inc., 3.55%, dated 3/31/94,
due 4/4/94 25,202,163
----------------------------------------------------------------
44,000,000 Prudential Securities, Inc., 3.50%, dated 3/31/94, due 4/4/94 44,000,000
---------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS (NOTE 2B) 113,202,163
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $284,150,523+
---------------------------------------------------------------- ------------
</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.
Note: The categories of investments are shown as a percentage of net assets
($284,347,506) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMERCIAL PAPER--6.4%
- -------------------------------------------------------------------------------------
BANKING--2.1%
-----------------------------------------------------------------
$ 3,000,000 Barclays Bank, Canada, 3.16%, 6/6/94 $ 2,982,620
----------------------------------------------------------------- ------------
INSURANCE--2.2%
-----------------------------------------------------------------
3,000,000 Marsh & McLennan Cos, Inc., 3.22%, 4/5/94 2,998,927
----------------------------------------------------------------- ------------
OIL/GAS--2.1%
-----------------------------------------------------------------
3,000,000 Texaco, Inc., 3.52%, 8/10/94 2,961,573
----------------------------------------------------------------- ------------
TOTAL COMMERCIAL PAPER 8,943,120
----------------------------------------------------------------- ------------
CORPORATE NOTES--30.8%
- -------------------------------------------------------------------------------------
BANKING--FINANCE--4.0%
-----------------------------------------------------------------
1,000,000 Associates Corp. of North America, 8.80%, 1/14/95 1,031,770
-----------------------------------------------------------------
1,000,000 Security Pacific Corp., 6.875%, 2/15/95 1,024,023
-----------------------------------------------------------------
1,000,000 Security Pacific Corp., Medium Term Note, 6.80%, 12/23/94 1,022,033
-----------------------------------------------------------------
2,500,000 Security Pacific Corp., Medium Term Note, 7.00%, 12/15/94 2,557,200
----------------------------------------------------------------- ------------
Total 5,635,026
----------------------------------------------------------------- ------------
FINANCE--AUTOMOTIVE--5.1%
-----------------------------------------------------------------
1,000,000 Ford Motor Credit Co., Medium Term Note, 5.55%, 12/14/94 1,112,165
-----------------------------------------------------------------
2,000,000 Ford Motor Credit Co., Medium Term Note, 5.50%, 12/20/94 2,025,443
-----------------------------------------------------------------
3,000,000 Ford Motor Credit Co., 9.40%, 5/26/94 3,026,428
-----------------------------------------------------------------
1,000,000 Toyota Motor Credit Co., 7.10%, 8/15/94 1,012,346
----------------------------------------------------------------- ------------
Total 7,176,382
----------------------------------------------------------------- ------------
FINANCIAL SERVICES--13.0%
-----------------------------------------------------------------
1,250,000 American General Finance Corp., 9.43%, 6/14/94 1,264,987
-----------------------------------------------------------------
800,000 Avco Financial Services, Inc., 8.875%, 1/15/95 832,009
-----------------------------------------------------------------
1,000,000 CIT Group Holdings Inc., 8.60%, 12/1/94 1,032,596
-----------------------------------------------------------------
4,500,000 CIT Group Holdings Inc., 8.87%, 8/15/94 4,588,384
-----------------------------------------------------------------
2,000,000 General Electric Capital Corp., 8.25%, 1/14/95 2,071,282
-----------------------------------------------------------------
1,000,000 Norwest Financial Inc., 8.90%, 6/15/94 1,011,173
-----------------------------------------------------------------
1,000,000 PNC Funding Corp., 3.55%, 1/20/95 999,585
-----------------------------------------------------------------
6,000,000 Shearson Lehman Hutton, Inc., 12.50%, 10/15/94 6,275,361
----------------------------------------------------------------- ------------
Total 18,075,377
----------------------------------------------------------------- ------------
OIL/GAS--2.9%
-----------------------------------------------------------------
1,000,000 BP America, Inc., 7.03%, 9/12/94 1,014,658
-----------------------------------------------------------------
3,000,000 Texaco Capital, Inc., 9.00%, 10/1/94 3,073,069
----------------------------------------------------------------- ------------
Total 4,087,727
----------------------------------------------------------------- ------------
</TABLE>
MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
CORPORATE NOTES--CONTINUED
- -------------------------------------------------------------------------------------
RESTAURANT/FOOD SERVICE--4.4%
-----------------------------------------------------------------
$ 1,000,000 PepsiCo, Inc., 5.875%, 12/15/94 $ 1,014,942
-----------------------------------------------------------------
1,200,000 Phillip Morris Cos, Inc., 5.65%, 5/19/94 1,203,574
-----------------------------------------------------------------
3,835,000 Phillip Morris Cos, Inc., 8.70%, 8/1/94 3,900,122
----------------------------------------------------------------- ------------
Total 6,118,638
----------------------------------------------------------------- ------------
TELECOMMUNICATIONS--0.7%
-----------------------------------------------------------------
1,000,000 Southwestern Bell Corp., 7.70%, 6/1/94 1,007,080
----------------------------------------------------------------- ------------
UTILITIES--0.7%
-----------------------------------------------------------------
1,000,000 Virginia Electric & Power Co., 8.05%, 6/20/94 1,009,761
----------------------------------------------------------------- ------------
TOTAL CORPORATE NOTES 43,109,991
----------------------------------------------------------------- ------------
**GOVERNMENT AGENCIES--31.6%
- -------------------------------------------------------------------------------------
3,000,000 Federal Home Loan Mortgage Corp., 3.68%, 6/3/94 3,000,000
-----------------------------------------------------------------
3,000,000 Federal National Mortgage Association, 3.82%, 6/15/94 3,002,244
-----------------------------------------------------------------
38,250,000 Student Loan Marketing Association, 3.77%-3.93%, 4/5/94 38,311,646
----------------------------------------------------------------- ------------
TOTAL GOVERNMENT AGENCIES 44,313,890
----------------------------------------------------------------- ------------
***REPURCHASE AGREEMENTS--33.5%
- -------------------------------------------------------------------------------------
32,957,046 Nikko Securities Co. International Inc., 3.55%, dated 3/31/94,
due 4/4/94 32,957,046
-----------------------------------------------------------------
14,000,000 Prudential Securities, Inc., 3.50%, dated 3/31/94, due 4/4/94 14,000,000
----------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS (NOTE 2B) 46,957,046
----------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $143,324,047+
----------------------------------------------------------------- ------------
</TABLE>
+ Also represents cost for federal tax purposes.
* Each issue shows the rate of discount at the time of purchase for discount
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
($140,099,075) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. VIRGINIA MARYLAND TREASURY
GOVERNMENT VALUE MUNICIPAL MUNICIPAL MONEY MONEY
INCOME EQUITY BOND BOND MARKET MARKET
FUND FUND FUND FUND FUND FUND
- ----------------------------------- ------------ ----------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
- -----------------------------------
Repurchase agreements, at amortized
cost (Note 2B) $ 4,714,720 $ 2,978,012 $ -- $ -- $113,202,163 $ 46,957,046
- -----------------------------------
Investments in other securities
(Note 2A) 226,070,427 76,463,554 115,118,971 48,581,562 170,948,360 96,367,001
- -----------------------------------
Cash -- 361,063 239,675 -- -- --
- -----------------------------------
Interest receivable 3,178,505 294 1,818,860 774,582 934,924 1,152,392
- -----------------------------------
Receivable for Fund shares sold 478,166 202,772 450,807 43,000 -- 50,955
- -----------------------------------
Receivable for investments sold 30,103,125 372,178 -- -- -- --
- -----------------------------------
Dividends receivable -- 202,160 -- -- -- --
- -----------------------------------
Prepaid/deferred expenses (Note 2F) 9,960 9,790 9,009 6,738 20,095 13,431
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Total assets 264,554,903 80,589,823 117,637,322 49,405,882 285,105,542 144,540,825
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
LIABILITIES:
- -----------------------------------
Payable for dollar roll
transactions (Note 2I) 30,920,565 -- -- -- -- --
- -----------------------------------
Payable for investments purchased -- 150,530 1,488,455 1,091,592 -- 4,067,954
- -----------------------------------
Payable to bank -- -- -- 70,659 -- --
- -----------------------------------
Payable for Fund shares repurchased 589,032 203,911 1,184,798 44,166 -- --
- -----------------------------------
Dividends payable 740,230 86 192,715 63,954 613,206 295,760
- -----------------------------------
Accrued expenses and other
liabilities 197,460 103,177 154,388 86,220 144,830 78,036
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Total liabilities 32,447,287 457,704 3,020,356 1,356,591 758,036 4,441,750
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
TOTAL NET ASSETS $232,107,616 $80,132,119 $114,616,966 $48,049,291 $284,347,506 $140,099,075
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
NET ASSETS CONSIST OF:
- -----------------------------------
Paid-in capital $243,291,502 $76,931,482 $116,447,290 $48,886,045 $284,347,506 $140,099,075
- -----------------------------------
Unrealized appreciation
(depreciation) of investments (6,074,647 ) 2,667,575 (1,887,920) (1,013,236) -- --
- -----------------------------------
Accumulated undistributed net
realized gain (loss) on
investments (5,109,239 ) 448,267 57,596 176,482 -- --
- -----------------------------------
Undistributed net investment income -- 84,795 -- -- -- --
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
TOTAL NET ASSETS $232,107,616 $80,132,119 $114,616,966 $48,049,291 $284,347,506 $140,099,075
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
NET ASSET VALUE and Offering Price
Per Share: (Net Assets/Shares
Outstanding)
- -----------------------------------
Trust Shares $10.17 $11.82 $10.47 $10.35 $1.00 $1.00
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Investment Shares $10.17 $11.82 $10.47 $10.35 $1.00 $1.00
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Redemption Price per Share:
Investment Shares $9.97 * $11.58* $10.26* $10.14* $1.00 $1.00
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
SHARES OUTSTANDING:
- -----------------------------------
Trust Shares 10,988,303 4,771,148 3,491,927 1,099,901 263,701,569 130,350,943
- -----------------------------------
Investment Shares 11,834,356 2,006,808 7,456,108 3,542,468 20,645,937 9,748,132
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Total shares outstanding 22,822,659 6,777,956 10,948,035 4,642,369 284,347,506 140,099,075
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Investments, at identified cost $236,859,794 $76,773,991 $117,006,891 $49,594,798 $ -- $ --
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
</TABLE>
* See "Redeeming Shares" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. VIRGINIA MARYLAND TREASURY
GOVERNMENT VALUE MUNICIPAL MUNICIPAL MONEY MONEY
INCOME EQUITY BOND BOND MARKET MARKET
FUND FUND FUND FUND FUND FUND
- ---------------------------------- ------------ ----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- ----------------------------------
Interest income $ 8,087,034 * $ 80,576 $ 3,083,346 $ 1,254,839 $3,170,921 $2,371,018
- ----------------------------------
Dividend income -- 1,033,320 -- -- -- --
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Total income (Notes 2C and 2I) 8,087,034 1,113,896 3,083,346 1,254,839 3,170,921 2,371,018
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
EXPENSES:
- ----------------------------------
Investment advisory fee (Note 5) 890,275 316,259 436,167 176,849 489,806 356,643
- ----------------------------------
Trustees' fees 2,040 941 643 394 495 1,483
- ----------------------------------
Administrative personnel and
services fees (Note 5) 143,048 50,813 70,052 28,404 117,620 85,964
- ----------------------------------
Custodian fees (Note 5) 35,328 16,973 24,660 13,124 32,833 25,096
- ----------------------------------
Transfer and dividend disbursing
agent fees and expenses (Note 5) 66,353 32,369 38,493 32,182 30,156 25,591
- ----------------------------------
Fund share registration costs 34,897 16,363 30,863 24,258 20,202 10,396
- ----------------------------------
Auditing fees 11,318 8,976 8,510 7,216 13,425 11,072
- ----------------------------------
Legal fees 4,600 4,981 4,884 5,506 6,787 5,929
- ----------------------------------
Printing and postage 16,335 16,985 23,438 17,262 14,692 15,767
- ----------------------------------
Recordkeeping fees (Note 5) 39,778 28,379 54,344 41,391 28,115 24,592
- ----------------------------------
Insurance premiums 4,342 2,611 3,929 3,409 4,214 3,984
- ----------------------------------
Distribution services fee (Note 5) 153,261 27,263 94,911 43,974 25,863 12,299
- ----------------------------------
Miscellaneous 8,066 2,750 3,443 1,849 5,751 4,164
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Total expenses 1,409,641 525,663 794,337 395,818 789,959 582,980
- ----------------------------------
Deduct--
- ----------------------------------
Waiver of investment advisory fee
(Note 5) 385,971 105,817 178,914 132,260 195,921 178,321
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Net expenses 1,023,670 419,846 615,423 263,558 594,038 404,659
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Net investment income 7,063,364 694,050 2,467,923 991,281 2,576,883 1,966,359
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
- ----------------------------------
Net realized gain (loss) on
investment transactions
(identified cost basis)-- (3,121,940 ) 511,402 163,074 247,088 -- --
- ----------------------------------
Change in unrealized appreciation
(depreciation) of investment (10,618,994 ) (2,911,894) (7,833,363) (3,756,694) -- --
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Net realized and unrealized
gain (loss) of investments (13,740,934 ) (2,400,492) (7,670,289) (3,509,606) -- --
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Change in net assets
resulting from operations ($6,677,570 ) ($1,706,442) ($5,202,366) ($2,518,325) $2,576,883 $1,966,359
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
</TABLE>
* Net of interest expense of $391,121 (Note 2I).
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT VIRGINIA MUNICIPAL
INCOME FUND VALUE EQUITY FUND BOND FUND
---------------------------- ---------------------------- ----------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1994* 1993 1994* 1993 1994* 1993
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
- ----------------------------
OPERATIONS--
- ----------------------------
Net investment income $ 7,063,364 $ 11,055,396 $ 694,050 $ 1,402,571 $ 2,467,923 $ 3,289,022
- ----------------------------
Net realized gain (loss) on
investment transactions (3,121,940) 910,697 511,402 1,411,849 163,074 761,679
- ----------------------------
Change in unrealized
appreciation (depreciation)
of investments (10,618,994) 679,105 (2,911,894) 765,999 (7,833,363) 5,201,265
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
resulting from
operations (6,677,570) 12,645,198 (1,706,442) 3,580,419 (5,202,366) 9,251,966
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
(NOTE 3)--
- ----------------------------
Dividends to shareholders
from net investment income:
- ----------------------------
Trust Shares (3,418,191) (6,368,982) (513,503) (1,243,902) (896,140) (1,422,592)
- ----------------------------
Investment Shares (3,505,098) (4,826,489) (166,995) (178,911) (1,571,783) (1,866,430)
- ----------------------------
Distributions to
shareholders from net
realized gain on investment
transactions:
- ----------------------------
Trust Shares (1,411,493) (758,969) (1,031,282) (716,366) (300,602) (121,101)
- ----------------------------
Investment Shares (1,485,610) (462,035) (352,940) (43,355) (566,570) (141,494)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from distributions to
shareholders (9,820,392) (12,416,475) (2,064,720) (2,182,534) (3,335,095) (3,551,617)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
FUND SHARE (PRINCIPAL)
TRANSACTIONS (NOTE 4)--
- ----------------------------
Net proceeds from sale of
shares 39,734,334 118,721,743 14,796,541 43,737,472 29,975,739 68,080,504
- ----------------------------
Net asset value of shares
issued to shareholders
electing to receive
payment of dividends in Fund
shares 4,085,512 4,462,449 1,167,057 1,236,878 1,823,997 1,796,047
- ----------------------------
Cost of shares redeemed (26,734,946) (27,775,953) (16,592,052) (13,711,227) (13,341,649) (12,615,672)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from Fund share
transactions 17,084,900 95,408,239 (628,454) 31,263,123 18,458,087 57,260,879
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets 586,938 95,636,962 (4,399,616) 32,661,008 9,920,626 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 $232,107,616 $231,520,678 $ 80,132,119 $ 84,531,735 $114,616,966 $104,696,340
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Undistributed net investment
income included in net
assets at end of period -- -- $ 84,795 $ 71,243 -- --
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARYLAND MUNICIPAL TREASURY MONEY
BOND FUND MARKET FUND MONEY MARKET FUND
---------------------------- ---------------------------- ----------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1994* 1993 1994* 1993 1994* 1993
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
- ----------------------------
OPERATIONS--
- ----------------------------
Net investment income $ 991,281 $ 1,414,559 $ 2,576,883 $ 4,770,981 $ 1,966,359 $ 4,118,393
- ----------------------------
Net realized gain (loss) on
investment transactions 247,088 367,211 -- -- -- --
- ----------------------------
Change in unrealized
appreciation (depreciation)
of investments (3,756,694) 2,363,638 -- -- -- --
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
resulting from
operations (2,518,325) 4,145,408 2,576,883 4,770,981 1,966,359 4,118,393
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
(NOTE 3)--
- ----------------------------
Dividends to shareholders
from net investment income:
- ----------------------------
Trust Shares (257,162) (371,280) (2,332,388) (4,372,212) (1,842,557) (3,879,216)
- ----------------------------
Investment Shares (734,119) (1,043,279) (244,495) (398,769) (123,802) (239,177)
- ----------------------------
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 (1,429,201) (1,418,949) (2,576,883) (4,770,981) (1,966,359) (4,118,393)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
FUND SHARE (PRINCIPAL)
TRANSACTIONS (NOTE 4)--
- ----------------------------
Net proceeds from sale of
shares 9,193,988 25,050,317 301,845,380 370,185,340 138,910,413 325,689,812
- ----------------------------
Net asset value of shares
issued to shareholders
electing to receive
payment of dividends in Fund
shares 903,254 928,241 245,213 396,094 122,308 239,477
- ----------------------------
Cost of shares redeemed (4,021,149) (2,840,951) (191,045,743) (373,689,837) (143,236,046) (324,046,130)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from Fund share
transactions 6,076,093 23,137,607 111,044,850 (3,108,403) (4,203,325) 1,883,159
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets 2,128,567 25,864,066 111,044,850 (3,108,403) (4,203,325) 1,883,159
- ----------------------------
NET ASSETS:
- ----------------------------
Beginning of period 45,920,724 20,056,658 173,302,656 176,411,059 144,302,400 142,419,241
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
End of period $ 48,049,291 $ 45,920,724 $284,347,506 $173,302,656 $140,099,075 $144,302,400
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
U.S. GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<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 0.32 0.67 0.75 0.78
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.60) 0.03 0.50 0.54
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.28) 0.70 1.25 1.32
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.32) (0.67) (0.75) (0.78)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.13) (0.08) (0.09) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.45) (0.75) (0.84) (0.78)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $10.17 $10.90 $10.95 $10.54
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (2.88%) 6.94% 12.42% 14.00%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 0.73%(a) 0.63% 0.52% 0.64%(a)
- -------------------------------------------------------------------
Net investment income 6.08%(a) 6.17% 7.01% 8.03%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.33%(a) 0.43% 0.65% 0.93%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $111,752 $112,334 $95,610 $27,565
- -------------------------------------------------------------------
Portfolio turnover rate 140% 154% 201% 101%
- -------------------------------------------------------------------
</TABLE>
<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 0.31 0.66 0.75 0.78
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.60) 0.03 0.50 0.54
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.29) 0.69 1.25 1.32
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.31) (0.66) (0.75) (0.78)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.13) (0.08) (0.09) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.44) (0.74) (0.84) (0.78)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $10.17 $10.90 $10.95 $10.54
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (3.00%) 6.82% 12.42% 14.00%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 0.98%(a) 0.77% 0.52% 0.64%(a)
- -------------------------------------------------------------------
Net investment income 5.83%(a) 5.91% 7.01% 8.03%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.33%(a) 0.43% 0.65% 0.93%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $120,356 $119,187 $40,274 $10
- -------------------------------------------------------------------
Portfolio turnover rate 140% 154% 201% 101%
- -------------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
VALUE EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<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 0.11 0.28 0.26 0.32
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.38) 0.51 0.46 1.85
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.27) 0.79 0.72 2.17
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.10) (0.26) (0.25) (0.31)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.20) (0.16) (0.31) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.30) (0.42) (0.56) (0.31)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $11.82 $12.39 $12.02 $11.86
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (2.08%) 6.42% 6.31% 22.68%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 0.93%(a) 0.66% 0.95% 0.80%(a)
- -------------------------------------------------------------------
Net investment income 1.71%(a) 2.09% 2.25% 3.05%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(a) 0.55% 0.34% 0.38%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $56,407 $65,841 $49,581 $37,032
- -------------------------------------------------------------------
Portfolio turnover rate 31% 67% 38% 84%
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
---------------------------------------------
INVESTMENT 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 0.09 0.24 0.26 0.32
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.37) 0.54 0.46 1.85
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.28) 0.78 0.72 2.17
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.09) (0.25) (0.25) (0.31)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.20) (0.16) (0.31) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.29) (0.41) (0.56) (0.31)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $11.82 $12.39 $12.02 $11.86
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (2.19%) 6.31% 6.31% 22.68%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 1.18%(a) 0.87% 0.95% 0.80%(a)
- -------------------------------------------------------------------
Net investment income 1.46%(a) 1.81% 2.25% 3.05%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(a) 0.55% 0.34% 0.38%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $23,725 $18,691 $2,290 $488
- -------------------------------------------------------------------
Portfolio turnover rate 31% 67% 38% 84%
- -------------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statement)
VIRGINIA MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<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 0.24 0.53 0.54 0.57
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.71) 0.89 0.29 0.18
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.47) 1.42 0.83 0.75
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.24) (0.53) (0.54) (0.57)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.08) (0.09) (0.01) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.32) (0.62) (0.55) (0.57)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $10.47 $11.26 $10.46 $10.18
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (4.26%) 13.62% 8.51% 7.64%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 0.89%(a) 0.75% 0.83% 0.47%(a)
- -------------------------------------------------------------------
Net investment income 4.41%(a) 4.85% 5.14% 6.08%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.31%(a) 0.50% 0.86% 1.70%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $36,556 $41,204 $20,852 $8,546
- -------------------------------------------------------------------
Portfolio turnover rate 13% 17% 51% 27%
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
---------------------------------------------
INVESTMENT 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 0.23 0.51 0.54 0.57
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.71) 0.89 0.29 0.18
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.48) 1.40 0.83 0.75
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.23) (0.51) (0.54) (0.57)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.08) (0.09) (0.01) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.31) (0.60) (0.55) (0.57)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $10.47 $11.26 $10.46 $10.18
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (4.38%) 13.49% 8.51% 7.64%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 1.14%(a) 0.90% 0.83% 0.47%(a)
- -------------------------------------------------------------------
Net investment income 4.16%(a) 4.68% 5.14% 6.08%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.31%(a) 0.50% 0.86% 1.70%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $78,061 $63,492 $20,883 $6,031
- -------------------------------------------------------------------
Portfolio turnover rate 13% 17% 51% 27%
- -------------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
MARYLAND MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<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 0.24 0.50 0.54 0.53
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.79) 0.85 0.29 0.10
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.55) 1.35 0.83 0.63
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.24) (0.50) (0.54) (0.53)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.10) -- -- --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.34) (0.50) (0.54) (0.53)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $10.35 $11.24 $10.39 $10.10
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (4.99%) 13.37% 8.31% 6.64%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 0.93%(a) 0.86% 0.59% 0.60%(a)
- -------------------------------------------------------------------
Net investment income 4.39%(a) 4.64% 5.11% 5.66%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.56%(a) 0.77% 1.91% 1.05%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $11,384 $12,014 $6,004 $556
- -------------------------------------------------------------------
Portfolio turnover rate 15% 23% 34% 35%
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
---------------------------------------------
INVESTMENT 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 0.23 0.49 0.54 0.53
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.79) 0.85 0.29 0.10
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.56) 1.34 0.83 0.63
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.23) (0.49) (0.54) (0.53)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.10) -- -- --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.33) (0.49) (0.54) (0.53)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $10.35 $11.24 $10.39 $10.10
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (5.11%) 13.24% 8.31% 6.64%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 1.18%(a) 1.00% 0.59% 0.60%(a)
- -------------------------------------------------------------------
Net investment income 4.14%(a) 4.50% 5.11% 5.66%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.56%(a) 0.77% 1.91% 1.05%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $36,665 $33,907 $14,053 $2,940
- -------------------------------------------------------------------
Portfolio turnover rate 15% 23% 34% 35%
- -------------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<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 0.01 0.03 0.04 0.06
- -----------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.03) (0.04) (0.06)
- ----------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** 1.31% 2.64% 3.61% 5.90%
- -----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------
Expenses 0.58%(a) 0.58% 0.70% 0.51%(a)
- -----------------------------------------------------------
Net investment income 2.66%(a) 2.60% 3.49% 5.65%(a)
- -----------------------------------------------------------
Expense waiver/reimbursement (b) 0.20%(a) 0.20% 0.11% 0.27%(a)
- -----------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------
Net assets, end of period (000 omitted) $263,702 $152,921 $163,451 $129,959
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
-----------------------------------------
INVESTMENT 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 0.01 0.02 0.04 0.06
- -----------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.02) (0.04) (0.06)
- ----------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** 1.19% 2.52% 3.61% 5.90%
- -----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------
Expenses 0.83%(a) 0.70% 0.70% 0.51%(a)
- -----------------------------------------------------------
Net investment income 2.41%(a) 2.47% 3.49% 5.65%(a)
- -----------------------------------------------------------
Expense waiver/reimbursement (b) 0.20%(a) 0.20% 0.11% 0.27%(a)
- -----------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------
Net assets, end of period (000 omitted) $20,646 $20,382 $12,960 $548
- -----------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<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 0.01 0.03 0.04 0.06
- ----------------------------------------------------------- ----- ----- ----- -----
LESS DISTRIBUTIONS
- -----------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.03) (0.04) (0.06)
- ----------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** 1.41% 2.89% 3.79% 5.92%
- -----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------
Expenses 0.55%(a) 0.50% 0.64% 0.51%(a)
- -----------------------------------------------------------
Net investment income 2.77%(a) 2.83% 3.64% 5.99%(a)
- -----------------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(a) 0.30% 0.29% 0.36%(a)
- -----------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------
Net assets, end of period (000 omitted) $130,351 $134,397 $136,616 $57,432
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
-----------------------------------------
INVESTMENT SHARES 1994* 1993 1992 1991**
- ----------------------------------------------------------- ----- ----- ----- -----
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $100 $1.00 $1.00
- -----------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------
Net investment income 0.01 0.03 0.04 0.06
- ----------------------------------------------------------- ----- ----- ----- -----
LESS DISTRIBUTIONS
- -----------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.03) (0.04) (0.06)
- ----------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** 1.28% 2.77% 3.79% 5.92%
- -----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------
Expenses 0.80%(a) 0.64% 0.64% 0.51%(a)
- -----------------------------------------------------------
Net investment income 2.52%(a) 2.68% 3.64% 5.99%(a)
- -----------------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(a) 0.30% 0.29% 0.36%(a)
- -----------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------
Net assets, end of period (000 omitted) $9,748 $9,905 $5,803 $1
- -----------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Signet Select Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended, as an open-end, management investment company. The Trust
consists of six separate portfolios (hereinafter each individually referred to
as a "Fund" or collectively as the "Funds") at March 31, 1994, as follows:
U.S. Government Income Fund
Value Equity Fund
Virginia Municipal Bond Fund
Maryland Municipal Bond Fund
Treasury Money Market Fund
Money Market Fund
The assets of each Fund of the Trust are segregated and a shareholder's interest
is limited to the Fund in which shares are held.
Each Fund provides two classes of shares ("Investment Shares" and "Trust
Shares"). Investment Shares will be identical in all respects to Trust Shares
except that Investment Shares may be subject to a redemption fee and will be
sold pursuant to a distribution plan (the "Plan") adopted in accordance with the
Investment Company Act Rule 12b-1. Under the Plan, the Funds will pay Federated
Securities Corp. (the "Distributor") a fee at an annual rate up to 0.25 of 1% of
the average net asset value of Investment Shares of the U.S. Government Income
Fund, the Value Equity Fund, the Virginia Municipal Bond Fund and the Maryland
Municipal Bond Fund and up to 0.35 of 1% of the average net asset value of
Investment Shares of Treasury Money Market Fund and the Money Market Fund to
finance any activity which is principally intended to result in the sale of
Investment Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--Listed equity securities, held by the Value Equity Fund, are
valued at the last sale price reported on national securities exchanges or, if there has
been no sale on the day, at the mean between bid and asked prices. Unlisted equity
securities are valued at the latest bid prices. Bonds and other fixed income portfolio
securities (which may trade on a national securities exchange and/or over the counter)
are valued on the basis of prices provided by an independent pricing service, when such
prices are believed to reflect the fair market value of such securities. Short-term
obligations with maturities of 60 days or less are valued at amortized cost, which
approximates value.
U.S. government obligations, held by the U.S. Government Income Fund, are valued at the
mean between the over-the-counter bid and asked prices as furnished by an independent
pricing service. U.S. government obligations and other short-term obligations maturing in
60 days or less are valued at amortized cost, which approximates value.
Municipal bonds, held by the Maryland Municipal Bond Fund and the Virginia Municipal Bond
Fund, are valued at fair value. An independent pricing service values the Funds'
municipal bonds taking into consideration yield, stability, risk, quality, coupon,
maturity, type of issue, trading characteristics, special circumstances of a security or
trading market, and any other market factors or market data it deems relevant in
determining valuations for normal institutional size trading units of
</TABLE>
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
debt securities, and does not rely exclusively on quoted prices. The Board of Trustees
(the "Trustees") have determined that the fair value of debt securities with remaining
maturities of 60 days or less shall be their amortized cost value unless the particular
circumstances of the security indicate otherwise.
Since the Maryland Municipal Bond Fund and the Virginia Municipal Bond Fund may invest a
substantial portion of the 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 for the Maryland Municipal Bond Fund to reduce the risk associated with such
factors, at March 31, 1994, 18.0% of the securities in the portfolio of investments are
backed by bond insurance of various financial guaranty assurance agencies. The aggregate
percentages by financial agency ranged from 2.00% to 8.02% of total investments.
In order for the Virginia Municipal Bond Fund to reduce the risk associated with such
factors, at March 31, 1994, 4.70% of the securities in the 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 agency
ranged from 0.4% to 2.2% of total investments.
Securities held by the Money Market Fund and the Treasury Money Market Fund are valued at
amortized cost. The Funds' use of the amortized cost method to value their portfolio
securities is conditioned on their compliance with Rule 2a-7 under the Investment Company
Act of 1940.
Investments in other regulated investment companies are valued at net asset value.
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 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 securities to ensure the existence of a proper level of
collateral. The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions such as broker/dealers which are deemed by the Funds'
adviser to be creditworthy pursuant to guidelines established by 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. INCOME--Dividend income for the Value Equity Fund is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis. Interest income includes interest and
discount earned (net of premium) on short-term obligations, and interest earned on all
other debt securities including original issue discount as required by the Internal
Revenue Code. Dividends to shareholders and capital gain distributions, if any, are
recorded on the ex-dividend date.
Interest income for the U.S. Government Income Fund is recorded on the accrual basis.
Interest income includes interest and discount earned (net of premium) on short-term
obligations, and interest earned on all other debt securities including original issue
discount as required by the Internal Revenue Code.
Interest income for the Maryland Municipal Bond Fund and the Virginia Municipal Bond Fund
is recorded on the accrual basis. Interest income includes interest earned net of
premium, and original issue discount as required by the Internal Revenue Code.
Interest income for the Treasury Money Market Fund and the Money Market Fund is recorded
on the accrual basis. Interest income includes interest and discount earned (net of
premium), including original issue discount as required by the Internal Revenue Code,
plus realized net gains, if any, on portfolio securities.
</TABLE>
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
D. FEDERAL TAXES--It is the policy of the Funds to comply with the provisions of the
Internal Revenue Code applicable to investment companies and to distribute to
shareholders each year all of their net income, including any net realized gain on
investments. Accordingly, no provision for federal tax is necessary.
Dividends paid by the Maryland Municipal Bond Fund and the Virginia Municipal Bond Fund
representing net interest received on tax-exempt municipal securities are not includable
by shareholders as gross income for federal tax purposes because the Funds intend to meet
certain requirements of the Internal Revenue Code applicable to regulated investment
companies which will enable the payment of tax-exempt interest dividends. The portion of
such interest, if any, earned on private activity municipal bonds issued after August 7,
1986, may be considered a tax preference item to shareholders.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in when-issued or
delayed delivery transactions. To the extent the Funds engage in such transactions, they
will do so for the purpose of acquiring portfolio securities consistent with their
investment objectives and policies and not for the purpose of investment leverage. The
Funds will record a when-issued security and the related liability on the trade date.
Until the securities are received and paid for, the Funds will 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--Costs incurred by the Funds in connection with their initial share
registration, other than organizational expenses, were deferred and are being amortized
on a straight-line basis through September 1995.
G. EXPENSES--Expenses of the Funds (other than distribution service fees) and waivers and
reimbursements, if any, are allocated to each class of shares based on their relative
daily average net assets for the period. Expenses incurred by the Funds which do not
specifically relate to an individual fund are allocated among all Funds based on a Fund's
relative net asset value size or as deemed appropriate by the administrator.
H. OTHER--Investment transactions are accounted for on the date of the transaction.
I. DOLLAR ROLL TRANSACTIONS--The U.S. Government Income Fund enters into dollar roll
transactions with respect to mortgage securities issued by GNMA, FNMA, and FHLMC in which
the Fund sells mortgage securities to financial institutions and simultaneously agrees to
repurchase substantially similar (same type, coupon, and maturity) securities at a later
date at an agreed upon price. During the period between the sale and repurchase, the Fund
foregoes principal and interest paid on the mortgage security sold. The Fund is
compensated by the interest earned on the cash proceeds of the initial sale and any
additional fee income received on the sale.
</TABLE>
(3) DIVIDENDS
Dividends and distributions are declared and paid quarterly to all shareholders
invested in the Value Equity Fund on the record date. The U.S. Government Income
Fund, the Maryland Municipal Bond Fund, the Virginia Municipal Bond Fund, the
Money Market Fund and the Treasury Money Market Fund compute their net income
daily and, immediately prior to the calculation of their net asset value at the
close of business, declare and record dividends to shareholders of record at the
time of the previous computation of the Funds' net asset value. Payment of
dividends is made monthly in cash, or in additional shares at the net asset
value on the payable date.
Dividends are paid from the net investment income of each class of shares of the
Funds. Net investment income consists of all dividends or interest received by
each class of shares of the Funds, less their expenses. Capital gains realized
by the Maryland Municipal Bond Fund, the U.S. Government Income Fund, the Value
Equity Fund, and the Virginia Municipal Bond Fund, if any, are distributed
proportionately to each class of shares at least once every twelve months.
Dividends will be reinvested
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
in additional shares of the same class at the ex-dividend date net asset value
without a sales charge unless cash payments are requested by shareholders in
writing to the Funds.
(4) 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 INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994:* FUND VALUE EQUITY FUND
- -------------------------------------------------- -------------------------- --------------------------
TRUST SHARES: SHARES DOLLARS SHARES DOLLARS
- -------------------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 1,977,299 $ 21,041,726 632,142 $ 7,862,260
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares -- -- 52,458 651,456
- --------------------------------------------------
Shares redeemed (1,292,163) (13,673,813) (1,229,407) (15,292,949)
- -------------------------------------------------- ---------- ------------ ---------- ------------
685,136 7,367,913 (544,807) (6,779,233)
---------- ------------ ---------- ------------
INVESTMENT SHARES:
- --------------------------------------------------
Shares sold 1,750,691 $ 18,692,608 560,382 $ 6,934,281
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 386,283 4,085,512 41,526 515,601
- --------------------------------------------------
Shares redeemed (1,234,279) (13,061,133) (104,220) (1,299,103)
- -------------------------------------------------- ---------- ------------ ---------- ------------
902,695 9,716,987 497,688 6,150,779
---------- ------------ ---------- ------------
Net change resulting from fund share transactions 1,587,831 $ 17,084,900 (47,119) $ (628,454)
- -------------------------------------------------- ---------- ------------ ---------- ------------
* Six months ended March 31, 1994 (unaudited).
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993: FUND VALUE EQUITY FUND
- -------------------------------------------------- -------------------------- --------------------------
TRUST SHARES: SHARES DOLLARS SHARES DOLLARS
- -------------------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 3,568,801 $ 36,487,002 2,146,235 $ 26,641,060
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 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
---------- ------------ ---------- ------------
INVESTMENT SHARES:
- --------------------------------------------------
Shares sold 7,706,464 $ 82,234,741 1,373,437 $ 17,096,412
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 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
---------- ------------ ---------- ------------
Net change resulting from fund share transactions 8,824,492 $ 95,408,239 2,509,528 $ 31,263,123
- -------------------------------------------------- ---------- ------------ ---------- ------------
</TABLE>
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL BOND MARYLAND MUNICIPAL BOND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994:* FUND FUND
- -------------------------------------------------- -------------------------- --------------------------
TRUST SHARES: SHARES DOLLARS SHARES DOLLARS
- -------------------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 466,357 $ 5,186,291 182,541 $ 2,005,796
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 45 507 -- --
- --------------------------------------------------
Shares redeemed (634,794) (6,981,971) (151,976) (1,674,545)
- -------------------------------------------------- ---------- ------------ ---------- ------------
(168,392) (1,795,173) 30,565 331,251
---------- ------------ ---------- ------------
INVESTMENT SHARES:
- --------------------------------------------------
Shares sold 2,225,799 $ 24,789,448 655,556 $ 7,188,192
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 165,141 1,823,490 82,200 903,254
- --------------------------------------------------
Shares redeemed (575,230) (6,359,678) (213,227) (2,346,604)
- -------------------------------------------------- ---------- ------------ ---------- ------------
1,815,710 20,253,260 524,529 5,744,842
---------- ------------ ---------- ------------
Net change resulting from fund share transactions 1,647,318 $ 18,458,087 555,094 $ 6,076,093
- -------------------------------------------------- ---------- ------------ ---------- ------------
* Six months ended March 31, 1994 (unaudited).
</TABLE>
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL BOND MARYLAND MUNICIPAL BOND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993: FUND FUND
- -------------------------------------------------- -------------------------- --------------------------
TRUST SHARES: SHARES DOLLARS SHARES DOLLARS
- -------------------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 2,213,254 $ 22,844,274 551,722 $ 5,981,004
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 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
---------- ------------ ---------- ------------
INVESTMENT SHARES:
- --------------------------------------------------
Shares sold 4,242,902 $ 45,236,230 1,775,657 $ 19,059,313
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 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 17,804,611
---------- ------------ ---------- ------------
Net change resulting from fund share transactions 5,311,665 $ 57,260,879 2,156,162 $ 23,127,607
- -------------------------------------------------- ---------- ------------ ---------- ------------
</TABLE>
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY MONEY MARKET
FUND MONEY MARKET FUND
------------------------------ ------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1994* 1993 1994* 1993
------------- ------------- ------------- -------------
TRUST SHARES: SHARES SHARES SHARES SHARES
- ------------------------------------------ ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares sold 291,213,029 330,249,896 128,155,539 298,420,298
- ------------------------------------------
Shares issued to shareholders electing to
receive payments of dividends in fund
shares 33 233 -- 12
- ------------------------------------------
Shares redeemed (180,432,062) (340,781,049) (132,225,208) (300,639,349)
- ------------------------------------------ ------------- ------------- ------------- -------------
110,781,000 (10,530,920) (4,069,669) (2,219,039)
------------- ------------- ------------- -------------
INVESTMENT SHARES:
- ------------------------------------------
Shares sold 10,632,351 39,935,444 10,754,874 27,269,514
- ------------------------------------------
Shares issued to shareholders electing to
receive payments of dividends in fund
shares 245,180 395,861 122,308 239,475
- ------------------------------------------
Shares redeemed (10,613,681) (32,908,788) (11,010,838) (23,406,781)
- ------------------------------------------ ------------- ------------- ------------- -------------
263,850 7,422,517 (133,656) 4,102,208
------------- ------------- ------------- -------------
Net change resulting from fund share
transactions 111,044,850 (3,108,403) (4,203,325) 1,883,169
- ------------------------------------------ ------------- ------------- ------------- -------------
* Six months ended March 31, 1994 (unaudited).
</TABLE>
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Signet Asset Management, the Trust's investment adviser ("Adviser"), receives
for its services an annual investment advisory fee based upon a percentage of
the Funds' average daily net assets (see below). The Adviser may voluntarily
choose to waive a portion of its fee. The Adviser will waive its investment
advisory fee on assets invested in securities of open-end investment companies.
The Adviser can terminate these voluntary waivers of expenses at any time at its
sole discretion.
<TABLE>
<CAPTION>
FUND RATE*
------------------------------------------------------------------- -----
<S> <C>
U.S. Government Income Fund 0.75%
-------------------------------------------------------------------
Value Equity 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%
-------------------------------------------------------------------
</TABLE>
* As a percentage of average daily net assets.
Federated Administrative Services ("FAS") provides the Trust certain
administrative personnel and services. The 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.
Signet Trust Company is the the Trust's custodian.
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
Expenses of organizing the Funds were borne initially by FAS. The Funds have
agreed to pay FAS, at an annual rate of 0.005 of 1% of average daily net assets,
until the organization expenses initially borne by FAS are reimbursed or five
years from October 12, 1990, (date the Trust's registration statement first
became effective), whichever occurs earlier. The expenses of organizing each
Fund and the amounts reimbursed by each Fund during the period ended March 31,
1994 are as follows:
<TABLE>
<CAPTION>
INITIAL ORGANIZATION
ORGANIZATION EXPENSES
FUND EXPENSES REIMBURSED
---------------------------------------------- ------------ ------------
<S> <C> <C>
U.S. Government Income Fund $ 53,346 $5,938
----------------------------------------------
Value Equity Fund 59,298 2,116
----------------------------------------------
Virginia Municipal Bond Fund 55,256 2,850
----------------------------------------------
Maryland Municipal Bond Fund 58,484 1,166
----------------------------------------------
Treasury Money Market Fund 49,243 4,446
----------------------------------------------
Money Market Fund 50,235 3,588
----------------------------------------------
</TABLE>
The Funds have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Funds will reimburse Federated
Securities Corp. ("FSC"), the Funds' principal distributor, from the assets of
the Investment Shares of the Funds, for the fees it paid which relate to the
distribution and administration of the Funds' Investment 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 U.S. Government Income
Fund, the Value Equity 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 and the Money Market Fund,
annually, to pay commissions, maintenance fees and to compensate the
distributor.
Federated Services Company is the transfer agent and dividend disbursing agent
for the Funds. It also provides certain accounting and recordkeeping services
with respect to the Funds' portfolio of investments.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments excluding short-term securities, for the six
months ended March 31, 1994, were as follows:
<TABLE>
<CAPTION>
U.S. VIRGINIA MARYLAND
GOVERNMENT VALUE MUNICIPAL MUNICIPAL
INCOME EQUITY BOND BOND
FUND FUND FUND FUND
- ---------------------------------------------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
PURCHASES-- $341,763,044 $25,598,414 $34,133,753 $12,555,429
- ---------------------------------------------- ----------- ----------- ----------- -----------
SALES-- $402,592,566 $24,072,687 $15,452,834 $ 7,015,918
- ---------------------------------------------- ----------- ----------- ----------- -----------
</TABLE>
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
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 John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
Craig P. Churman
Vice President and Assistant
Treasurer
C. Grant Anderson
Assistant Secretary
Mutual funds are not obligations of or insured by any bank nor are they insured
by the federal government or any of its agencies. Investment in these shares
involves risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
SIGNET
SELECT FUNDS
INVESTMENT SHARES COMBINED
SEMI-ANNUAL REPORT
MARCH 31, 1994
- U.S. GOVERNMENT INCOME FUND
- VALUE EQUITY FUND
- VIRGINIA MUNICIPAL BOND FUND
- MARYLAND MUNICIPAL BOND FUND
- TREASURY MONEY MARKET FUND
- MONEY MARKET FUND
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Signet Select Funds Semi-Annual Report, which covers
the six-month period from October 1, 1993 through March 31, 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, Signet Select Funds performed competitively
over the period. For example:
- - U.S. Government Income Fund provided investors with dividends of $0.31 per
Investment Share ($0.32 per Trust Share) and capital gains of $0.13 per
Investment Share ($0.13 per Trust Share), while assets increased from $231.5
million to $232.1 million.
- - Value Equity Fund paid dividends of $0.09 per Investment Share ($0.10 per
Trust Share) and capital gains of $0.20 per Investment Share ($0.20 per Trust
Share), while assets stood at $80 million.
- - Virginia Municipal Bond Fund paid dividends of $0.23 per Investment Share
($0.24 per Trust Share) and capital gains of $0.08 per Investment Share ($0.08
per Trust Share), while assets increased from $104.7 million to $114.6
million.
- - Maryland Municipal Bond Fund paid dividends of $0.23 per Investment Share
($0.24 per Trust Share) and capital gains of $0.10 per Investment Share ($0.10
per Trust Share), while assets increased from $45.9 million to $48 million.
- - Treasury Money Market Fund paid dividends of $0.01 per Investment Share,
($0.01 per Trust Share), and experienced a major increase in assets from
$173.3 million to $284.3 million.
- - Money Market Fund paid dividends of $0.01 per Investment Share ($0.01 per
Trust Share), and the Fund's assets stood at $140 million at the end of the
period.
Thank you for your confidence in Signet Select Funds. We will continue to keep
you fully informed, and we look forward to serving you as you pursue your
financial goals.
Sincerely,
Edward C. Gonzales
President
May 15, 1994
INVESTMENT REVIEW
U.S. Government Income Fund
- --------------------------------------------------------------------------------
Investment Shares
Q How did the Signet Select U.S. Government Income Fund ("Fund") perform over
the six-month reporting period?
A The Fund has had an average total rate of return of 3.00% for Investment
Shares (-4.90% taking into account the redemption fee), and 2.88% for Trust
Shares for the six-month period ended March 31, 1994. The negative
performance was a result of rate increases by the Federal Reserve (the "Fed")
which forced bond prices lower. Rate increases were deemed necessary to prevent
any rise in inflation as a result of stronger than expected economic growth in
the third and fourth quarters of 1993.
Q With interest rates finally on the rise, how have you positioned the Fund's
portfolio?
A In anticipation of rate increases by the Fed, we reduced the portfolio's
average maturity in January of 1994. A reduction in average maturity helps
to preserve principal value as bond prices fall. We believe that the
shorter the average maturity during a rising environment, the better the
relative performance will be of the Fund. We instituted a modest shortening of
maturity given our belief that the rise in interest rates will be temporary. In
addition, the portfolio weighting in mortgage securities was reduced
substantially. Mortgages underperformed relative to intermediate term U.S.
Treasury securities during the first quarter of 1994.
Q What is your outlook for rates in the near future? Do you foresee making
any further changes to the Fund's duration?
A By virtue of the recent interest rate increases by the Fed, we believe the
economy will begin showing signs of slower growth in the second half of
1994. Rate increases have the obvious effect of making purchases of cars
and homes more expensive. As interest rates rise, consumers delay or abandon
their plans to purchase "big ticket" items. With consumer purchases accounting
for two-thirds of Gross Domestic Product ("GDP"), any decrease in spending will
have an immediate impact on economic activity.
Given our views expressed above, we do not expect to see interest rates as low
as they were in 1993, but some moderation from current levels is anticipated. If
we are correct and the economy begins to show signs of slower economic growth,
we will then begin extending the duration or average maturity of the portfolio.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
INVESTMENT REVIEW
Value Equity Fund
- --------------------------------------------------------------------------------
Investment Shares
Q How did the Value Equity Fund ("Fund") perform over the six-month reporting
period, compared to the S&P 500?
A For the six-month period ended March 31, 1994, the Value Equity Fund had a
return of -2.19% for Investment Shares* (-4.18 taking into account the
redemption fee) and -2.08% for Trust Shares, which compares to the Standard
and Poor's 500 Index decline of -1.59%.**
Q During the period, what notable additions did you make to the portfolio and
why?
A The Fund added to shares of existing positions in the portfolio and made
several new investments in companies over the last six months. Some
examples of the new additions include:
Columbia/HCA Hospital, which is the world's largest health care services company
operating over 190 hospitals nationwide. Double digit profit growth is forecast
by many analysts due to the cost efficiencies from current and future
acquisitions of hospitals.
Nynex, which operates the fifth largest local telephone business serving New
York state and the New England states. Following a decline in price, the company
was purchased at a dividend yield of over 6%. Continued growth in their cellular
and cable businesses should help overall corporate profits increase rapidly.
Microsoft, which designs and develops personal computer software including the
industry standard MS-DOS system for IBM based computers. Double-digit profit
growth and a purchase price which did not fully reflect the new software
releases provided the basis for the purchase.
Q Knowing when to sell is an equally important factor in successful
investing. What factors influence your decision to remove a stock from the
portfolio? Can you comment on particular stocks that were removed during
the past six months?
A The ability to sell a stock is critical to the investment process. Often a
stock will rise in value to a point where it overstates its long term
prospects. At other times a stock may have deteriorating fundamentals, such
as challenging competition or declining profits, where selling is done to
preserve capital. In either case, we carefully evaluate the company's price
compared to its long term business outlook. Examples of sales that occurred over
the past six months include:
Toll Brothers, a home builder, was sold after it ran up in price and was left
vulnerable to an increase in interest rates. That occured during the first
quarter after the Fund had sold its entire position for a profit.
Masco Corporation is another company tied to the housing industry that was
vulnerable to rising mortgage rates. The initial position was purchased while
interest rates were declining, and sold for a profit when the increased stock
price reflected continued low levels of interest rates.
Both are examples of good companies that would be purchased again if the price
understated the long term potential growth rate of the companies.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
** The Standard & Poor's 500 Index is unmanaged.
- --------------------------------------------------------------------------------
Q Interest rates are beginning to rise. How do you see the stock market
responding and how do you anticipate positioning the portfolio?
A Interest rates have risen following the Fed's attempt to fight potential
inflation and slow down the economy by raising the Federal Funds rate. The
stock market has fallen in response to the higher level of rates because it
means generally lower corporate profits and reduced valuations that investors
are willing to pay for purchasing shares. We do not foresee runaway inflation or
sharply higher interest rates at this time.
Our strategy in the Fund is to focus on companies with above average profit
growth, and at this time not to have an overweighting in any economic sector. In
the long run, stock prices follow earnings so the focus is on those companies
with continued strong business fundamentals.
INVESTMENT REVIEW
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Investment Shares
Q How did the Virginia Municipal Bond Fund ("Fund") perform over the past six
months? What was the Fund's yield equivalent to in terms of a taxable
investment for an investor in the 28% federal tax bracket?
A The economy continued to show evidence of expansive and sustainable growth
over the past six months. The fear of an accelerating rate of inflation
remained in the foreground. In order to keep inflation managable, the
Federal Reserve moved to a less accommodative monetary policy, resulting in a
steady rise in interest rates. In response, the Virginia Municipal Bond Fund has
moved to a more defensive posture. Even with rates on the rise, municipalities
placed an unexpectedly heavy amount of new issuance into the market. Demand for
tax-free bonds was sporadic due to market volatility, and many investors
retreated to the sidelines awaiting stabilization.
Due to the increase in interest rates, the yield on the Fund moved higher. The
Fund moved from a 30-day distribution rate of 4.23% for Investment Shares and
4.48% for Trust Shares on October 1, 1993, to 4.28% and 4.53%, respectively, on
March 31, 1994. The 30-day SEC yield on March 31, 1994 was 4.14% for Investment
Shares and 4.39% for Trust Shares. For an investor in the 28% federal tax
bracket, this equates to a 6.46% for Investment Shares and 6.83% for Trust
Shares taxable equivalent 30-day distribution rate and 6.25% for Investment
Shares and 6.63% for Trust Shares taxable equivalent 30-day SEC yield for March
31, 1994.
The total rate of return (income plus capital appreciation) for the past six
months was -4.38% for Investment Shares (-6.29% taking into account the
redemption fee) and -4.26% for Trust Shares. For the 12 months ended March 31,
1994, the return was 2.70% for Investment Shares (0.65% taking into account the
redemption fee) and 2.92% for Trust Shares. Again, these returns are double
tax-free and reflect the recent turn in the bond market. *Since inception in
October 1990, the Fund has produced a cumulative total return of 26.76% for the
Investment Shares (24.35% taking into account the redemption fee) and 27.06% for
Trust Shares. The annualized total returns for this period were 7.15% for
Investment Shares (6.55% taking into account the redemption fee) and 7.22% for
Trust Shares. We believe our current strategy will enhance the Fund's total
return in this declining price/increasing yield environment.
Q Has Virginia continued to be one of the stronger states from an economic
perspective?
A The Commonwealth of Virginia continues to be recognized for its diverse
economy and fiscal conservation. The willingness and ability to adjust
financial planning has enabled the Commonwealth to sustain moderate growth.
Although uncertainty remains with respect to defense cutbacks, the growth in the
private sector is expected to compensate for the losses incurred. Virginia's
unemployment rate consistantly remains well below national averages, and per
capita income remains one of the highest in the Southeast. By virtue of these
statistics, Virginia is one of the few states which maintains Aaa/AAA ratings by
Moody's and Standard & Poor's and a stable long-term outlook.
* Income may be subject to the federal alternative minimum tax.
- --------------------------------------------------------------------------------
Q Can you comment on any changes you've made in strategy during the six-month
period, particularly with respect to the rise in interest rates?
A With the economy expanding and interest rates being driven higher, the
Virginia Municipal Bond Fund has moved to a more defensive strategy over
the past six months. As yields on municipals followed the upward movement
of yields on Treasuries, we began to shorten the maturity buying range. The Fund
continues to strive toward a more equal weighting between General Obligation and
Revenue bonds. In order to insulate the Fund somewhat from an erosion of value,
we have placed greater emphasis on higher coupon paper, as performance in this
sector is higher in a declining price/rising yield environment. The yield
differential between an AAA and an A rated bond remains historically narrow.
Therefore, we feel the risk/return tradeoff is not at an optimum level, and
place greater emphasis on higher quality municipals. With the available supply
of tax-exempt paper expected to decline, and demand expected to rise in
conjunction with tax increases, we expect municipals to perform well over the
year. We will continue to manage the portfolio with a 10-year maturity target.
INVESTMENT REVIEW
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Investment Shares
Q How did the Maryland Municipal Bond Fund ("Fund") perform over the past six
months? What was the Fund's yield equivalent to in terms of a taxable
investment for an investor in the 28% federal tax bracket?
A The economy continued to show evidence of expansive and sustainable growth
over the past six months. The fear of an accelerating rate of inflation
remained in the foreground. In order to keep inflation manageable, the Fed
moved to a less accommodative monetary policy, resulting in a steady rise in
interest rates. In response, the Maryland Municipal Bond Fund has moved to a
more defensive posture. Even with rates on the rise, municipalities placed an
unexpectedly heavy amount of new issuance into the market. Demand for tax-free
bonds was sporadic due to market volitility and many investors retreated to the
sidelines awaiting stabilization.
Due to the increase in interest rates, the Fund's yield increased. The Fund
moved from a 30-day distribution rate of 3.84% for Investment Shares and 4.09%
for Trust Shares on October 1, 1993, to 4.11% and 4.36%, respectively on March
31, 1994. The 30-day SEC yield on March 31, 1994 was 4.15% for Investment Shares
and 4.40% for Trust Shares. For an investor in the 28% federal tax bracket, this
equates to a 6.37% for Investment Shares and 6.76% for Trust Shares taxable
equivalent 30-day distribution rate and 6.43% for Investment Shares and 6.82%
for Trust Shares taxable equivalent 30-day SEC yield for March 30, 1994.
The total rate of return (income plus capital appreciation) for the past six
months was -5.11% for Investment Shares (-7.03% taking into account the
redemption fee) and -4.99% for Trust Shares. For the 12 months ended March 31,
1994, the return was 1.83% for Investment Shares (-0.23% taking into account the
redemption fee) and 2.05% for Trust Shares. Again, these returns are double
tax-free and reflect the recent turn in the bond market. *Since inception in
October 1990, the Fund has produced a cumulative total return of 24.12% for
Investment Shares (21.73% taking into account the redemption fee) and 24.41% for
Trust Shares. The annualized total returns for this period were 6.52% (5.92%
taking into account the redemption fee) and 6.60% for Trust Shares. We believe
our current strategy will enhance the Fund's total return in this declining
price/increasing yield environment.
Q Has Maryland's economic situation improved?
A The State of Maryland's financial condition has remained under pressure
throughout the national recession. With the recent economic upturn, the
State continues to struggle in its own rebound. Employment has seen little
growth, corporate profits are low, and localities remain negatively impacted
from state-wide funding cuts. However, the outlook for the State economy as a
whole remains stable. Maryland enjoys a broad based economy, strong wealth
levels and a versatile financial structure. The debt burden is high, but
manageable, and historically performance is sound. These strengths enable
Maryland to be one of the few states to maintain Aaa/AAA ratings by Moody's and
Standard & Poor's.
* Income may be subject to the federal alternative minimum tax.
- --------------------------------------------------------------------------------
Q Can you comment on any changes you've made in strategy during the six-month
period, particularly with respect to the rise in interest rates?
A With the economy expanding and interest rates being driven higher, the
Maryland Municipal Bond Fund has moved to a more defensive strategy over
the past six months. As yields on municipals followed the upward movement
of yields on Treasuries, we began to shorten the maturity buying range. The Fund
continues to strive toward a more equal weighting between General Obligation and
Revenue bonds. In order to insulate the Fund somewhat from an erosion of value,
we have placed greater emphasis on higher coupon paper, as performance in this
sector is higher in a declining price/rising yield environment. The yield
differential between an AAA and an A rated bond remains historically narrow.
Therefore, we feel the risk/return tradeoff is not at an optimum level, and
place greater emphasis on higher quality municipals. With the available supply
of tax-exempt paper expected to decline, and demand expected to rise in
conjunction with tax increases, we expect municipals to perform well over the
year. We will continue to manage the portfolio with a 10-year average maturity
target.
INVESTMENT REVIEW
Treasury Money Market Fund
- --------------------------------------------------------------------------------
Investment Shares
Q Interest rates are finally on the rise. Can you comment on the series of
rate increases and its effect on the Fund's yield?
A The Fed's policy change to raise "real" short-term rates is partly an
attempt to prevent inflationary economic expansion. The Fed's target for
Fed funds may approximate 4.00%, as a move from an accommodative position
to a neutral position. The amount and timing of additional rate increases
creates uncertainty for short-term rates. The rate increases by the Fed have
impacted the Fund's yield. The seven-day net yield increased approximately .18%
during the first quarter of 1994.
Q How did the Fund respond in terms of performance?
A The Fund's average net yield for the quarter was 2.62% as compared to
Donoghue Treasury & Repo Index of 2.56% for the same period (data per the
April 1994 issue of "Money Market Insight").*
Q What is your outlook for interest rates in the near future?
A We believe that interest rates will be driven in the near future by Fed
policy and the Fed's "neutral target for the Fed funds rate. This Fed
action may result in a .25% - .50% increase in the Fed funds rate, thus
resulting in pressure on the short-term rates to rise.
Q As a result, have you made any further changes in the Fund's average
maturity?
A The Fund's average maturity is slightly shorter and will be postured in a
"defensive" position in anticipation of further Fed tightening.
* The Donoghue Treasury & Repo Index is unmanaged.
INVESTMENT REVIEW
Money Market Fund
- --------------------------------------------------------------------------------
Investment Shares
Q Interest rates are finally on the rise. Can you comment on the series of
rate increases and the affect on the Fund's yield?
A The Fed's policy change to raise "real" short-term rates is partly an
attempt to prevent inflationary economic expansion. The Fed's target for
Fed funds may approximate 4.00%, as a move from an accommodative position
to a neutral position. The amount and timing of additional rate increases
creates uncertainty for short-term rates. The rate increases by the Fed have
impacted the Fund's yield. The seven-day net yield increased approximately .46%
during the first quarter of 1994.
Q How did the rate increases affect the yield advantage of commercial paper
over Treasuries?
A The spread for commercial paper over Treasuries approximated their recent
historical experience during the first quarter.
Q What is your outlook for commercial paper rates in the near future?
A We believe that the commercial paper rates will be driven in the near
future by Fed policy and the Fed's "neutral" target for the Fed funds rate.
This Fed action may result in a .25% - .50% increase in the fed funds rate,
thus resulting in pressure on the short-term rates to rise.
Q As a result, have you made any further changes in the Fund's average
maturity?
A The Fund's average maturity is slightly shorter, and investment positions
in floating rate notes have increased as a means to possibly increase yield
without extending the average maturity.
U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
SHORT-TERM INVESTMENT--12.9%
- -------------------------------------------------------------------------------------
U.S. TREASURY BILL
----------------------------------------------------------------
$ 30,000,000 4/21/94 (at amortized cost) $ 29,943,500
---------------------------------------------------------------- ------------
LONG-TERM INVESTMENTS--84.5%
- -------------------------------------------------------------------------------------
U.S. TREASURY NOTES--67.1%
----------------------------------------------------------------
147,275,000 4.25%-8.875%, 10/15/95-8/15/2001 (identified cost $160,393,625) 155,792,503
---------------------------------------------------------------- ------------
GOVERNMENT OBLIGATIONS--17.4%
----------------------------------------------------------------
5,000,000 Federal Home Loan Bank, 8.23%, 8/9/2001 5,376,350
----------------------------------------------------------------
500,000 Federal Home Loan Mortgage Corp., PC, REMIC, 8.50%, 9/15/2017 506,120
----------------------------------------------------------------
123,875 Federal Home Loan Mortgage Corp., PC, 7.804%, 12/1/2020 128,659
----------------------------------------------------------------
3,800,000 Federal Home Loan Mortgage Corp., PC, REMIC, 7.80%, 5/15/2012 3,833,554
----------------------------------------------------------------
4,943,064 Federal Home Loan Mortgage Corp., PC., 6.00%, 11/1/2013 4,532,147
----------------------------------------------------------------
131,573 Federal Home Loan Mortgage Corp., PC, 5.606%, 8/1/2019 135,849
----------------------------------------------------------------
4,622,669 Federal National Mortgage Association, REMIC, 12.3958%,
11/25/2022 4,206,629
----------------------------------------------------------------
105,620 Federal National Mortgage Association, REMIC, 8.50%, 12/25/2011 106,059
----------------------------------------------------------------
3,197,297 Federal National Mortgage Association, REMIC, 8.00%, 7/25/2018 3,216,897
----------------------------------------------------------------
1,048,581 Federal National Mortgage Association, 8.50%, 12/1/2001 1,087,242
----------------------------------------------------------------
136,555 Federal National Mortgage Association, 8.479% 6/1/2019 141,463
----------------------------------------------------------------
1,500,000 Federal National Mortgage Association, 7.85%, 9/10/98 1,589,025
----------------------------------------------------------------
14,280,000 Federal National Mortgage Association, 7.50%, 2/1/2009 14,409,377
----------------------------------------------------------------
743,664 Government National Mortgage Association, 9.00%, 9/15/2021 779,918
----------------------------------------------------------------
282,049 Government National Mortgage Association, 8.00%, 3/15/2017 285,135
---------------------------------------------------------------- ------------
TOTAL GOVERNMENT OBLIGATIONS (IDENTIFIED COST, $41,807,949) 40,334,424
---------------------------------------------------------------- ------------
TOTAL LONG-TERM INVESTMENTS (IDENTIFIED COST, $202,201,574) 196,126,927
---------------------------------------------------------------- ------------
</TABLE>
U.S. GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*REPURCHASE AGREEMENT--2.0%
- -------------------------------------------------------------------------------------
$ 4,714,720 Nikko Securities Co. International, Inc., 3.55%, dated 3/31/94,
due 4/4/94 (at amortized cost) (Note 2B) $ 4,714,720
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $236,859,794) $230,785,147+
---------------------------------------------------------------- ------------
</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 $236,859,794. The
net unrealized depreciation on a federal tax basis amounts to $6,074,647,
which is comprised of $150,173 appreciation and $6,224,820 depreciation at
March 31, 1994.
The following abbreviations are used in this portfolio:
PC--Participation Certificates
REMIC--Real Estate Mortgage Investment Conduit
Note: The categories of investments are shown as a percentage of net assets
($232,107,616) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
VALUE EQUITY FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--95.4%
- --------------------------------------------------------------------------------------
BASIC MATERIALS--6.1%
-------------------------------------------------------------------
19,250 Albemarle Corp. $ 283,938
-------------------------------------------------------------------
14,500 duPont (E.I.) Denemours & Co. 768,500
-------------------------------------------------------------------
5,450 Eastman Chemical Co. 219,362
-------------------------------------------------------------------
38,500 Ethyl Corp. 466,813
-------------------------------------------------------------------
20,000 Kimberly-Clark Corp. 1,057,500
-------------------------------------------------------------------
28,000 Weyerhaeuser Co. 1,211,000
-------------------------------------------------------------------
19,210 Willamette Industries, Inc. 912,475
------------------------------------------------------------------- -----------
Total 4,919,588
------------------------------------------------------------------- -----------
CAPITAL GOODS/CONSTRUCTION--8.1%
-------------------------------------------------------------------
18,200 Deere & Co. 1,528,800
-------------------------------------------------------------------
21,000 General Electric Co. 2,092,125
-------------------------------------------------------------------
22,000 Raytheon Co. 1,421,750
-------------------------------------------------------------------
39,500 York International Corp. 1,431,875
------------------------------------------------------------------- -----------
Total 6,474,550
------------------------------------------------------------------- -----------
CONSUMER CYCLICAL--16.8%
-------------------------------------------------------------------
21,300 Chrysler Corp. 1,099,612
-------------------------------------------------------------------
14,800 Dayton Hudson Corp. 1,080,400
-------------------------------------------------------------------
21,800 Eastman Kodak Co. 967,375
-------------------------------------------------------------------
18,500 Eaton Corp. 1,070,688
-------------------------------------------------------------------
38,250 Ford Motor Co. 2,247,188
-------------------------------------------------------------------
29,000 McDonalds Corp. 1,649,375
-------------------------------------------------------------------
59,050 Merisel, Inc. 1,070,281
-------------------------------------------------------------------
23,300 Sears Roebuck & Co. 1,001,900
-------------------------------------------------------------------
53,100 Wal-Mart Stores, Inc. 1,373,962
-------------------------------------------------------------------
109,800 Wendy's International Inc. 1,880,325
------------------------------------------------------------------- -----------
Total 13,441,106
------------------------------------------------------------------- -----------
CONSUMER STAPLES--17.2%
-------------------------------------------------------------------
46,200 Abbott Labs 1,230,075
-------------------------------------------------------------------
18,000 American Home Products Corp. 1,044,000
-------------------------------------------------------------------
27,500 Amgen, Inc. 1,051,875
-------------------------------------------------------------------
31,600 Baush & Lomb, Inc. 1,485,200
-------------------------------------------------------------------
32,700 Columbia/HCA Hospital Corp. 1,316,175
-------------------------------------------------------------------
28,500 CPC International Inc. 1,350,188
-------------------------------------------------------------------
</TABLE>
VALUE EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
-------------------------------------------------------------------
36,900 Crown Cork & Seal, Inc. $ 1,443,713
-------------------------------------------------------------------
40,000 McCormick & Co., Inc. 870,000
-------------------------------------------------------------------
43,400 Merck & Co., Inc. 1,291,150
-------------------------------------------------------------------
39,500 PepsiCo, Inc. 1,446,687
-------------------------------------------------------------------
25,000 Philip Morris Cos., Inc. 1,268,750
------------------------------------------------------------------- -----------
Total 13,797,813
------------------------------------------------------------------- -----------
ENERGY--10.5%
-------------------------------------------------------------------
15,000 Atlantic Richfield Co. 1,425,000
-------------------------------------------------------------------
20,000 Chevron Corp. 1,685,000
-------------------------------------------------------------------
42,100 Dresser Industries. Inc. 894,625
-------------------------------------------------------------------
25,000 Exxon Corp. 1,571,875
-------------------------------------------------------------------
17,350 Mobil Corp. 1,290,406
-------------------------------------------------------------------
24,500 Texaco Inc. 1,543,500
------------------------------------------------------------------- -----------
Total 8,410,406
------------------------------------------------------------------- -----------
FINANCIAL--10.9%
-------------------------------------------------------------------
25,000 AON Corp. 1,200,000
-------------------------------------------------------------------
19,100 Bank of New York, Inc. 974,100
-------------------------------------------------------------------
47,800 Corestates Financial Corp. 1,242,800
-------------------------------------------------------------------
35,500 Crestar Financial Corp. 1,513,187
-------------------------------------------------------------------
29,000 Dean Witter Discover & Co. 946,125
-------------------------------------------------------------------
19,200 Federal Home Loan Mortgage Corp. 974,400
-------------------------------------------------------------------
14,750 Federal National Mortgage Association 1,146,813
-------------------------------------------------------------------
29,378 First Colony Corp. 712,417
------------------------------------------------------------------- -----------
Total 8,709,842
------------------------------------------------------------------- -----------
MISCELLANEOUS--1.2%
-------------------------------------------------------------------
26,000 Allied Signal Inc. 952,250
------------------------------------------------------------------- -----------
TECHNOLOGY--11.3%
-------------------------------------------------------------------
23,300 AT&T Co. 1,194,125
-------------------------------------------------------------------
37,000 Avnet, Inc. 1,410,625
-------------------------------------------------------------------
29,300 Intel Corp. 1,977,750
-------------------------------------------------------------------
15,950 Microsoft Corp. 1,351,762
-------------------------------------------------------------------
38,200 Pitney Bowes, Inc. 1,551,875
-------------------------------------------------------------------
29,000 3Com Corp. 1,620,375
------------------------------------------------------------------- -----------
Total 9,106,512
------------------------------------------------------------------- -----------
</TABLE>
VALUE EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------------
TRANSPORT & SERVICES--2.7%
-------------------------------------------------------------------
16,700 CSX Corp. $ 1,369,400
-------------------------------------------------------------------
12,500 Norfolk Southern Corp. 807,812
------------------------------------------------------------------- -----------
Total 2,177,212
------------------------------------------------------------------- -----------
UTILITIES--10.6%
-------------------------------------------------------------------
38,000 GTE Corp. 1,178,000
-------------------------------------------------------------------
36,500 Montana Power Co. 894,250
-------------------------------------------------------------------
44,500 Nicor, Inc. 1,134,750
-------------------------------------------------------------------
32,700 NYNEX Corp. 1,128,150
-------------------------------------------------------------------
67,000 Southern Co. 1,281,375
-------------------------------------------------------------------
36,000 Southwestern Bell Corp. 1,453,500
-------------------------------------------------------------------
41,000 Sprint Corp. 1,404,250
------------------------------------------------------------------- -----------
Total 8,474,275
------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $73,795,979) 76,463,554
------------------------------------------------------------------- -----------
*REPURCHASE AGREEMENT--3.7%
- --------------------------------------------------------------------------------------
$2,978,012 Nikko Securities Co., International, Inc., 3.55%, dated 3/1/94,
due 4/4/94 (at amortized cost) (Note 2B) 2,978,012
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $76,773,991) $79,441,566+
------------------------------------------------------------------- -----------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $76,773,991. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $2,667,575, which is comprised of $5,461,034 appreciation and $2,793,459
depreciation at March 31, 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
($80,132,119) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
VIRGINIA MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--100.1%
- --------------------------------------------------------------------
$ 790,000 Alexandria, VA, Public Improvement, 5.10%, GO Bond,
2/1/2008 Aaa $ 744,994
------------------------------------------------------
250,000 Amherst, VA, IDA, 6.55%, 9/1/2005 A- 263,680
------------------------------------------------------
900,000 Arlington County, VA, IDA Arlington Hospital 6.60%,
9/1/2004 A-1 980,820
------------------------------------------------------
250,000 Arlington County, VA, 6.00% GO Bond, 12/1/2005 AAA 261,543
------------------------------------------------------
500,000 Arlington County, VA, 5.125% GO Bond, 7/15/2006 AAA 482,500
------------------------------------------------------
1,000,000 Arlington County, VA, Public Improvement, 5.50%,
8/1/2006 AAA 999,910
------------------------------------------------------
500,000 Arlington County, VA, 5.25% GO Bond, 7/15/2007 AAA 483,250
------------------------------------------------------
400,000 Arlington County, VA, 5.60% GO Bond, 8/1/2007 AAA 400,276
------------------------------------------------------
350,000 Augusta County, VA, 6.10% (AMBAC Insured), 9/1/2000 AAA 368,442
------------------------------------------------------
200,000 Bath County, VA, 6.45%, 12/15/2007 A 214,828
------------------------------------------------------
150,000 Bedford, VA, Public Improvement, 5.25% GO Bond,
8/1/2007 A 141,601
------------------------------------------------------
785,000 Charlottesville, VA, 5.20% GO Bond, 7/15/2008 AAA 755,822
------------------------------------------------------
225,000 Chesapeake, VA, Water & Sewer System Authority, 5.95%,
GO Bond, 7/1/2000 A+ 234,250
------------------------------------------------------
320,000 Chesapeake, VA, Water & Sewer System Authority, 6.60%,
GO Bond, 7/1/2006 A+ 341,830
------------------------------------------------------
1,000,000 Chesapeake, VA, 5.25% GO Bond, 12/1/2006 AA 979,110
------------------------------------------------------
1,360,000 Chesapeake, VA, Public Improvement, 5.70%, 8/1/2007 AA 1,378,918
------------------------------------------------------
300,000 Chesterfield County, VA, 6.60%, (Series B), 1/1/2003 AAA 327,144
------------------------------------------------------
300,000 Chesterfield County, VA, 6.625%, (Series B), 1/1/2005 AAA 327,387
------------------------------------------------------
1,500,000 Chesterfield County, VA, Public Improvement, 5.00%,
3/1/2006 AA 1,429,950
------------------------------------------------------
250,000 Chesterfield County, VA, 5.60% GO Bond, 7/15/2006 AA+ 252,115
------------------------------------------------------
300,000 Chesterfield County, VA, 5.70% GO Bond, 7/15/2007 AA+ 302,760
------------------------------------------------------
105,000 Chesterfield, VA, IDA, 5.45%, 4/1/2007 AA 102,050
------------------------------------------------------
300,000 Chesterfield, VA, Water & Sewer System Authority,
6.10% GO Bond, 11/1/2004 AA 317,985
------------------------------------------------------
300,000 Chesterfield, VA, Water & Sewer System Authority,
4.95%, 5/1/2006 A 276,825
------------------------------------------------------
1,000,000 Covington Allegheny County, 6.20%, 4/1/2007 A-1 1,002,650
------------------------------------------------------
345,000 Culpeper, VA, 5.60%, 2/1/2007 A 342,478
------------------------------------------------------
270,000 Culpeper, VA, 5.30%, 4/1/2007 AAA 259,697
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 210,000 Culpeper, VA, 5.375%, 4/1/2008 AAA $ 201,327
------------------------------------------------------
255,000 Culpeper, VA, 5.30%, 6/1/2008 A 244,915
------------------------------------------------------
200,000 Danville, VA, 6.50%, 2/1/2005 A 214,124
------------------------------------------------------
500,000 Danville, VA, 6.20%, 5/1/2006 A 521,145
------------------------------------------------------
200,000 Fairfax County, VA, 6.00%, (Series B), 5/1/2006 AAA 208,502
------------------------------------------------------
400,000 Fairfax County, VA, 5.75%, (Series C), 10/1/2006 AAA 412,000
------------------------------------------------------
1,140,000 Fairfax County, VA, 5.30%, 11/15/2006 AAA 1,118,351
------------------------------------------------------
395,000 Fairfax County, VA, IDA, 6.50%, 8/15/2007 AA 431,490
------------------------------------------------------
500,000 Fairfax County, VA, 5.75%, (Series C), 10/1/2007 AAA 512,760
------------------------------------------------------
1,505,000 Fairfax County, VA, 5.40%, 11/15/2007 AAA 1,476,465
------------------------------------------------------
1,000,000 Fairfax County, VA, 6.00%, (Series B), 5/1/2008 AAA 1,035,540
------------------------------------------------------
500,000 Fairfax County, VA, IDA, 5.00%, 8/15/2008 AA- 450,465
------------------------------------------------------
375,000 Fairfax County, VA, 5.75%, 10/1/2008 AAA 381,653
------------------------------------------------------
250,000 Fairfax County, VA, Water & Sewer System Authority,
5.05%, 4/1/2009 AA- 226,953
------------------------------------------------------
390,000 Falls Church, VA, 5.25% GO Bond, 8/1/2007 A+ 371,631
------------------------------------------------------
370,000 Falls Church, VA, 5.30% GO Bond, 8/1/2008 A+ 350,061
------------------------------------------------------
800,000 Fauquier County, VA, 5.40% GO Bond, 7/15/2006 AA 792,848
------------------------------------------------------
800,000 Fauquier County, VA, 5.45% GO Bond, 7/15/2007 AA 789,520
------------------------------------------------------
300,000 Fauquier County, VA, 5.50% GO Bond, 7/15/2008 AA 294,447
------------------------------------------------------
400,000 Fredericksburg-Winchester Service Authority, VA,
5.60%, (AMBAC Insured), 10/1/2005 AAA 404,052
------------------------------------------------------
250,000 Fredericksburg, VA, 5.00%, 7/15/2007 AA- 233,822
------------------------------------------------------
195,000 Hampton, VA, Public Improvement & Refunding, 6.75%,
1/1/2005 AA 213,248
------------------------------------------------------
1,000,000 Hampton Roads, VA, College, 6.30%, 11/15/2002 A- 1,044,610
------------------------------------------------------
500,000 Hampton Roads, VA, College, 6.50%, 11/15/2005 A- 522,865
------------------------------------------------------
350,000 Hampton Roads, VA, Public Improvement, 5.00%,
10/1/2007 AA 324,653
------------------------------------------------------
1,000,000 Hampton Roads, VA, Public Improvement, 5.10%,
10/1/2008 AA 925,050
------------------------------------------------------
250,000 Henrico County, VA, Development Authority, 5.70%,
8/15/2005 AAA 251,340
------------------------------------------------------
500,000 Henrico County, VA, Development Authority, 5.20%,
8/15/2006 AAA 475,430
------------------------------------------------------
100,000 Henrico County, VA, Development Authority, 5.80%,
8/15/2006 AAA 100,611
------------------------------------------------------
1,000,000 Henrico County, VA, Public Improvement & Refunding,
5.20% GO Bond, 1/15/2007 AAA 964,610
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 1,000,000 Henrico County, VA, Public Improvement & Refunding,
5.20%, 1/15/2008 AAA $ 953,520
------------------------------------------------------
405,000 Herndon, VA, 5.00%, 12/1/2008 A1 369,886
------------------------------------------------------
500,000 James Madison University, VA, 5.375%, 6/1/2009 AAA 468,645
------------------------------------------------------
595,000 Leesburg, VA, 5.40% GO Bond, 8/1/2005 A 587,021
------------------------------------------------------
200,000 Leesburg, VA, 5.50% GO Bond, 8/1/2006 A 197,344
------------------------------------------------------
500,000 Leesburg, VA, Utility System Revenue, 6.10%, 7/1/2007 AAA 509,090
------------------------------------------------------
125,000 Lexington, VA, 6.60% GO Bond, 12/1/2007 A 131,232
------------------------------------------------------
200,000 Loudoun County, VA, Sanitation Authority, 6.00%,
1/1/2003 AAA 209,396
------------------------------------------------------
250,000 Loudoun County, VA, IDA, 6.250%, 5/15/2006 A1 256,193
------------------------------------------------------
1,000,000 Loudoun County, VA, Public Improvement & Refunding,
5.50%, 10/1/2007 AA- 985,960
------------------------------------------------------
600,000 Loudoun County, VA, IDA, 5.50%, 6/1/2008 AA 574,338
------------------------------------------------------
1,000,000 Loudoun County, VA, Public Improvement, 5.00% GO
Bonds, 10/1/2008 AA- 922,270
------------------------------------------------------
500,000 Loudoun County, VA, 5.10% GO Bonds, (Series A),
10/1/2009 AA- 460,205
------------------------------------------------------
440,000 Lynchburg, VA, 5.00%, 4/1/2004 AA 425,546
------------------------------------------------------
1,850,000 Lynchburg, VA, 5.25%, 4/1/2007 AA 1,774,279
------------------------------------------------------
395,000 Lynchburg, VA, IDA, 5.10%, 9/1/2003 A 380,985
------------------------------------------------------
500,000 Lynchburg, VA, IDA, 5.30%, 9/1/2005 A 479,255
------------------------------------------------------
500,000 Lynchburg, VA, IDA, 5.40%, 9/1/2006 A 478,080
------------------------------------------------------
200,000 Lynchburg, VA, Public Improvement, 5.50%, 3/1/2005 AA 200,152
------------------------------------------------------
450,000 Lynchburg, VA, Public Improvement, 5.00%, 4/1/2009 AA 408,380
------------------------------------------------------
500,000 Lynchburg, VA, 5.60% GO Bond, 3/1/2006 AA 500,780
------------------------------------------------------
500,000 Lynchburg, VA, 5.80% GO Bond, 3/1/2008 AA 499,025
------------------------------------------------------
250,000 Metropolitan Washington DC, 5.10%, 10/1/2007 AAA 233,105
------------------------------------------------------
750,000 Metropolitan Washington DC, 5.20%, 10/1/2008 AAA 696,548
------------------------------------------------------
200,000 Nelson County, VA, 5.10%, 7/1/2006 AAA 188,830
------------------------------------------------------
250,000 Nelson County, VA, 5.20%, 7/1/2007 AAA 235,355
------------------------------------------------------
1,835,000 Newport News, VA, 6.10%, 6/1/2008 AA 1,892,325
------------------------------------------------------
500,000 Newport News, VA, 5.30% GO Bond, 11/1/2005 AA- 490,230
------------------------------------------------------
1,500,000 Newport News, VA, 5.20% GO Bond, 6/1/2008 AA- 1,409,595
------------------------------------------------------
350,000 Newport News, VA, 5.90%, (Series A), 6/1/2005 AA 360,531
------------------------------------------------------
500,000 Newport News, VA, 5.80%, (Series A), 7/1/2007 AA 505,015
------------------------------------------------------
725,000 Newport News, VA, 5.80%, (Series B), 7/1/2007 AA- 726,254
------------------------------------------------------
480,000 Newport News, VA, 5.40%, (Series B), 11/1/2007 AA 465,600
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 1,500,000 Newport News, VA, 5.45%, (Series B), 11/1/2008 AA- $ 1,447,290
------------------------------------------------------
345,000 Newport News, VA, 5.45%, (Series B), 11/1/2008 AA 332,877
------------------------------------------------------
1,000,000 Norfolk, VA, 5.25% GO Bond, 2/1/2006 AA 974,990
------------------------------------------------------
500,000 Norfolk, VA, 5.00% GO Bond, 6/1/2006 AA 475,865
------------------------------------------------------
1,000,000 Norfolk, VA, 5.25% GO Bond, 6/1/2008 AA 952,840
------------------------------------------------------
500,000 Norfolk, VA, 6.00%, (Series A), 2/1/2008 AA 511,295
------------------------------------------------------
250,000 Norfolk, VA, IDA, 6.60%, 6/1/2002 (AMBAC Insured) AAA 270,005
------------------------------------------------------
250,000 Norfolk, VA, IDA, 6.75%, 6/1/2004 (AMBAC Insured) AAA 274,063
------------------------------------------------------
750,000 Norfolk, VA, IDA, 5.10%, 6/1/2007 (AMBAC Insured) AAA 698,783
------------------------------------------------------
300,000 Penisula Port Authority of VA, (Riverside Health
Systems), 6.00%, 7/1/2001 AA 312,108
------------------------------------------------------
250,000 Penisula Port Authority of VA, (Riverside Health
Systems), 6.10%, 7/1/2002 AA 260,655
------------------------------------------------------
1,000,000 Peterburg, VA, Hospital Authority, 5.90%, 7/1/2002 A 1,008,980
------------------------------------------------------
950,000 Portsmouth, VA, 5.90%, 11/1/2001 AA- 990,574
------------------------------------------------------
300,000 Portsmouth, VA, 6.40%, 11/1/2003 AA- 321,966
------------------------------------------------------
500,000 Portsmouth, VA, 5.45%, GO Bond, 8/1/2007 AA- 484,760
------------------------------------------------------
500,000 Prince George County, VA, Public Improvement &
Refunding, 5.60%, 8/1/2008 A 491,265
------------------------------------------------------
500,000 Prince William County, VA, IDA, 5.50%, 7/15/2002 A 491,905
------------------------------------------------------
1,000,000 Prince William County, VA, Water & Sewer System
Authority, 4.75%, (FGIC Insured), 7/1/2007 AAA 891,810
------------------------------------------------------
1,000,000 Prince William County, VA, 5.00%, (Series C), 8/1/2007 AA 938,710
------------------------------------------------------
1,000,000 Prince William County, VA, 5.10%, (Series C), 8/1/2008 AA 937,030
------------------------------------------------------
500,000 Richmond, VA, 6.30%, (Series B), 1/15/2004 AA 531,825
------------------------------------------------------
160,000 Richmond, VA, 6.40%, (Series A), 1/15/2005 AA 170,256
------------------------------------------------------
625,000 Richmond, VA, 6.40%, (Series B), 1/15/2005 AA 665,063
------------------------------------------------------
140,000 Richmond, VA, 6.25%, (Series A), 7/15/2005 AA 148,945
------------------------------------------------------
250,000 Richmond, VA, 6.00%, (Series B), 7/15/2005 AA 261,095
------------------------------------------------------
200,000 Richmond, VA, 6.60%, (Series A), 1/15/2007 AA 211,860
------------------------------------------------------
250,000 Richmond, VA, 6.60%, (Series B), 1/15/2007 AA 267,317
------------------------------------------------------
250,000 Richmond, VA, Metropolitan Authority, 5.90%, (Series
B), (FGIC Insured), 7/15/2003 AAA 259,198
------------------------------------------------------
500,000 Richmond, VA, Metropolitan Authority, 6.05% (Series
B), (FGIC Insured), 7/15/2005 AAA 519,345
------------------------------------------------------
760,000 Richmond, VA, Public Improvement, 5.30%, 1/15/2006 AA 744,291
------------------------------------------------------
500,000 Richmond, VA, Public Improvement, 5.45%, 7/15/2008 AA 484,995
------------------------------------------------------
500,000 Rivanna Water & Sewer Authority, VA, 4.75%, 10/1/2008 Aa 439,590
------------------------------------------------------
295,000 Roanoke, VA, 6.25%, 8/1/2006 AA 311,018
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 500,000 Roanoke, VA, 5.50%, 6/1/2007 AA $ 495,800
------------------------------------------------------
600,000 Roanoke, VA, 5.55%, 7/1/2008 AA 592,422
------------------------------------------------------
750,000 Roanoke, VA, IDA, 6.90%, 7/1/99 A+ 808,912
------------------------------------------------------
605,000 Roanoke, VA, IDA, 5.80%, 7/1/2005 A+ 608,648
------------------------------------------------------
1,185,000 Roanoke, VA, IDA, 6.00%, 7/1/2007 A1 1,186,659
------------------------------------------------------
1,000,000 Roanoke, VA, Public Improvement, 4.70% GO Bond,
8/1/2005 AA 925,940
------------------------------------------------------
1,670,000 Roanoke, VA, Public Improvement, 5.00%, 8/1/2009 Aa 1,527,449
------------------------------------------------------
100,000 Roanoke, VA, Water & Sewer System Authority 6.10% GO
Bond, (Series 1991), 6/1/2004 AA 105,369
------------------------------------------------------
100,000 Roanoke, VA, Water & Sewer System Authority 6.20% GO
Bond, (Series 1991), 6/1/2005 AA 105,715
------------------------------------------------------
100,000 Roanoke, VA, Water & Sewer System Authority 6.30% GO
Bond, (Series 1991), 6/1/2006 AA 105,837
------------------------------------------------------
150,000 Salem, VA, 6.70% GO Bond, 6/1/2004 AA 158,032
------------------------------------------------------
250,000 South Boston, VA, 6.70%, (AMBAC Insured), 7/1/2005 AAA 266,155
------------------------------------------------------
500,000 Southeastern, VA, Public Service Authority, 6.90%,
7/1/2002 (BIG Insured) AAA 551,540
------------------------------------------------------
175,000 Southeastern, VA, Public Service Authority, 7.00%,
7/1/2003 (BIG Insured) AAA 193,839
------------------------------------------------------
500,000 Southeastern, VA, Public Service Authority, 5.10%,
7/1/2008 (MBIA Insured) AAA 465,865
------------------------------------------------------
150,000 Spotsylvania County, VA, Public Improvement, 6.40%,
3/1/2006 A+ 161,656
------------------------------------------------------
605,000 Spotsylvania County, VA, Public Improvement, 5.70%,
7/15/2007 A+ 599,936
------------------------------------------------------
250,000 Stafford County, VA, Water & Sewer, 5.80% GO Bond,
8/1/2000 A1 257,025
------------------------------------------------------
100,000 Stafford County, VA, 6.50% GO Bond, 6/1/2003 A+ 105,858
------------------------------------------------------
100,000 Stafford County, VA, 6.60% GO Bond, 6/1/2004 A+ 106,016
------------------------------------------------------
425,000 Suffolk, VA, 5.40%, 8/1/2004 A 419,016
------------------------------------------------------
500,000 Suffolk, VA, Public Improvement & Refunding, 5.70% GO
Bond, 8/1/2007 A 494,440
------------------------------------------------------
150,000 University of Virginia Hospital, 6.90%, (Series E),
6/1/2003 A+ 160,813
------------------------------------------------------
100,000 University of Virginia, 5.00%, (Series A), 6/1/2007 AA+ 93,219
------------------------------------------------------
300,000 Upper Occoquan, VA, Sewer Authority, 5.45%, (AMBAC
Insured), 7/1/2003 AAA 302,574
------------------------------------------------------
300,000 Vienna, VA, Public Improvement, 5.25%, 8/1/2007 AA 289,110
------------------------------------------------------
300,000 Vienna, VA, Public Improvement, 5.30%, 8/1/2008 AA 287,196
------------------------------------------------------
900,000 Virginia Beach, VA, 6.00%, 2/1/2006 AA 935,127
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 295,000 Virginia Beach, VA, Development Authority, 6.30%,
11/1/2004 AA $ 309,579
------------------------------------------------------
300,000 Virginia Beach, VA, Water & Sewer, 6.125%, 2/1/2003 A+ 317,274
------------------------------------------------------
500,000 Virginia Beach, VA, 5.70% GO Bond, 7/15/2006 AA 505,770
------------------------------------------------------
600,000 Virginia Beach, VA, 5.30% GO Bond, 7/15/2007 AA 579,414
------------------------------------------------------
500,000 Virginia Beach, VA, 5.80% GO Bond, 7/15/2007 AA 506,520
------------------------------------------------------
665,000 Virginia Beach, VA, 5.99% GO Bond, 7/15/2008 AA 674,656
------------------------------------------------------
250,000 Virginia Beach, VA, 6.90% GO Bond, (Series A),
6/1/2004 AA 277,150
------------------------------------------------------
350,000 Virginia Beach, VA, 6.50% GO Bond, (Series C),
8/1/2005 AA 376,435
------------------------------------------------------
500,000 Virginia Beach, VA, 5.40% GO Bond, (Series A),
7/15/2007 AA 487,925
------------------------------------------------------
200,000 Virginia Beach, VA, 6.50% GO Bond, (Series C),
8/1/2007 AA 213,040
------------------------------------------------------
500,000 Virginia Beach, VA, 5.50% GO Bond, (Series A),
7/15/2008 AA 487,880
------------------------------------------------------
250,000 Virginia College, 6.40%, (University of Richmond)
11/1/2022 AA 272,170
------------------------------------------------------
150,000 Virginia College Building Authority, VA, (Washington &
Lee), Revenue Bonds, 7.00%, 1/1/2004 AA- 162,755
------------------------------------------------------
1,000,000 Virginia College Building Authority, VA, (Hampton
University), Revenue Bonds, 5.50%, 4/1/2005 A+ 976,550
------------------------------------------------------
1,000,000 Virginia State, 6.50%, 6/1/2006 AAA 1,083,920
------------------------------------------------------
300,000 Virginia State, 5.70%, 6/1/2007 AAA 304,833
------------------------------------------------------
1,000,000 Virginia State, 5.20%, 6/1/2008 AAA 958,320
------------------------------------------------------
250,000 Virginia State, 6.50%, (Series A), 6/1/2005 AAA 270,980
------------------------------------------------------
500,000 Virginia State, 5.70%, (Series A), 6/1/2008 AAA 504,890
------------------------------------------------------
520,000 Virginia State, Public Improvement, 5.60%, 6/1/2007 AAA 524,248
------------------------------------------------------
1,000,000 Virginia State, Public Improvement, 5.10%, 12/1/2007 AAA 958,130
------------------------------------------------------
450,000 Virginia State HDA, 6.20%, 1/1/2001 AA 466,380
------------------------------------------------------
500,000 Virginia State HDA, 5.45%, (Series C), 1/1/2002 Aa 498,705
------------------------------------------------------
385,000 Virginia State HDA, 6.05%, 11/1/2006 AA 391,595
------------------------------------------------------
410,000 Virginia State HDA, 6.10%, 11/1/2007 AA 416,359
------------------------------------------------------
615,000 Virginia State, Higher Education, 5.75%, 6/1/2008 AAA 623,450
------------------------------------------------------
280,000 Virginia State Multifamily, HDA, 6.25%, (Series D),
11/1/2000 A1 291,920
------------------------------------------------------
100,000 Virginia State Multifamily, HDA, 7.15%, (Series D),
11/1/2002 A1 106,720
------------------------------------------------------
500,000 Virginia State Public Building Authority, 5.625%,
8/1/2002 AA 512,145
------------------------------------------------------
300,000 Virginia State Public Building Authority, 5.80%,
8/1/2002 AA 310,791
------------------------------------------------------
360,000 Virginia State Public Building Authority, 6.60%,
8/1/2004 AA 389,117
------------------------------------------------------
400,000 Virginia State Public Building Authority, 5.50%,
8/1/2006 AA 395,560
------------------------------------------------------
320,000 Virginia State Public Building Authority, 5.25%,
1/1/2007 AA 306,208
------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ----------- ------------------------------------------------------ ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- --------------------------------------------------------------------
$ 755,000 Virginia State Public Building Authority, 5.60%,
8/1/2007 AA $ 747,948
------------------------------------------------------
250,000 Virginia State Public Building Authority, 6.25%,
1/1/2008 AA 259,013
------------------------------------------------------
1,500,000 Virginia State Public Building Authority, 5.40%,
8/1/2008 AA 1,439,190
------------------------------------------------------
1,310,000 Virginia State Public Building Authority, 5.25%,
(Series A), 8/1/2006 AA 1,266,049
------------------------------------------------------
1,350,000 Virginia State Public Building Authority, 5.30%,
(Series A), 1 /1 /2007 AA 1,297,849
------------------------------------------------------
830,000 Virginia State Public School Authority, 5.10%,
1/1/2005 AA 798,684
------------------------------------------------------
465,000 Virginia State Public School Authority, 5.90%,
1/1/2006 AA 475,788
------------------------------------------------------
600,000 Virginia State Public School Authority, 5.75%,
1/1/2008 AA 598,242
------------------------------------------------------
500,000 Virginia State Public School Authority, 5.30%,
(Series B), 1/1/2002 AA 501,215
------------------------------------------------------
400,000 Virginia State Public School Authority, 5.125%,
(Series B), 1/1/2006 AA 382,768
------------------------------------------------------
200,000 Virginia State Resource Authority, Water & Sewer
System Authority, 6.70%, 10/1/2004 AA 214,370
------------------------------------------------------
250,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.75%, 10/1/2005 AA 253,718
------------------------------------------------------
300,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.85%, 10/1/2006 AA 304,674
------------------------------------------------------
275,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.10%, 10/1/2007 Aa 258,836
------------------------------------------------------
250,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.90%, 5/1/2007 AA 253,400
------------------------------------------------------
175,000 Virginia State Resource Authority, Water & Sewer
System Authority, 5.35%, 10/1/2007 AA 168,117
------------------------------------------------------
300,000 Virginia State Resource Authority, Solid Waste
Disposal System 5.10%, 5/1/2006 AA 284,862
------------------------------------------------------
335,000 Virginia State Resource Authority, Solid Waste
Disposal System 5.45%, 5/1/2006 AA 328,524
------------------------------------------------------
600,000 Virginia State, Transportation, 6.00%, 4/1/2004 AA 622,836
------------------------------------------------------
550,000 Virginia State, Transportation, 6.00%, 4/1/2005 AA 575,240
------------------------------------------------------
500,000 Virginia State, Transportation, 5.25%, 5/15/2006 AA 482,155
------------------------------------------------------
1,800,000 Virginia State, Transportation, 6.00%, 4/1/2007 AA 1,862,910
------------------------------------------------------
1,305,000 Virginia State, Transportation, 5.10%, 5/15/2007 AA 1,225,212
------------------------------------------------------
1,000,000 Virginia State, Transportation, 5.375%, 5/15/2007 AA 965,700
------------------------------------------------------
500,000 Virginia State, Transportation, 5.25%, 5/15/2008 AA 475,545
------------------------------------------------------
750,000 Virginia State, Transportation, 5.40%, 5/15/2008 AA 717,803
------------------------------------------------------
</TABLE>
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
- --------------------------------------------------------------------
$ 500,000 Virginia Commonwealth University, Medical College,
4.45%, 7/1/2003 A1 $ 464,010
------------------------------------------------------
300,000 Virginia State University, 5.90%, 7/1/2006 A+ 300,000
------------------------------------------------------
250,000 Warrenton, VA, 5.50%, 9/1/2007 A1 245,570
------------------------------------------------------
100,000 Wayneboro, VA, 5.45%, 4/1/2007 A1 100,257
------------------------------------------------------
540,000 Wayneboro, VA, 5.40%, 2/1/2009 A1 514,015
------------------------------------------------------
495,000 Wayneboro, VA, 4.70% GO Bond, 2/1/2006 A1 449,599
------------------------------------------------------
390,000 Wayneboro, VA, 5.35% GO Bond, 2/1/2006 A1 381,943
------------------------------------------------------
385,000 Wayneboro, VA, 4.85% GO Bond, 2/1/2007 A1 351,532
------------------------------------------------------
215,000 West Point, VA, 4.70%, 6/1/2007 A 194,839
------------------------------------------------------
225,000 West Point, VA, 4.80%, 6/1/2008 A 203,580
------------------------------------------------------
185,000 West Point, VA, 6.65% GO Bond, 6/1/2006 A 201,953
------------------------------------------------------
500,000 Winchester, VA, 5.20%, 1/15/2006 AA 486,645
------------------------------------------------------
150,000 Winchester, VA, 6.60%, 3/1/2006 AA 161,619
------------------------------------------------------ ------------
TOTAL LONG--TERM MUNICIPAL SECURITIES
(IDENTIFIED COST, $117,000,529) 115,112,609
------------------------------------------------------ ------------
MUTUAL FUND SHARES--0.1%
- --------------------------------------------------------------------
3,181 Goldman Sachs Institutional Tax-Exempt 3,181
------------------------------------------------------
3,181 Municipal Funds for Temporary Investment 3,181
------------------------------------------------------ ------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE)
(NOTE 2A) 6,362
------------------------------------------------------ ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $117,006,891) $115,118,971
------------------------------------------------------ ------------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $117,006,891. The
net unrealized depreciation of investments on a federal tax basis amounts to
$1,887,920, which is comprised of $1,388,192 appreciation and $3,276,112
depreciation at March 31, 1994.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
BIG -- Bond Investors Guaranty
FGIC -- Financial Guaranty Insurance Corporation
GO -- General Obligation
HDA -- Housing Development Authority
IDA -- Industrial Development Authority
LOC -- Letter(s) of Credit
MBIA -- Municipal Bond Insurance Assurance
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($114,616,966) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
MARYLAND MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--101.1%
- -------------------------------------------------------------------------
$ 555,000 Annapolis, MD, Public Improvement, 5.90%, GO Bonds,
7/15/2005 AA $ 574,847
-------------------------------------------------------
500,000 Anne Arundel County MD, Consolidated General
Improvement, 5.70%, 7/15/2003 AA+ 514,475
-------------------------------------------------------
100,000 Anne Arundel County MD, Consolidated General
Improvement, 6.50%, 4/15/2007 AA+ 106,239
-------------------------------------------------------
670,000 Anne Arundel County MD, 5.125%, (Solid Waste Project),
7/15/2007 AA+ 635,575
-------------------------------------------------------
585,000 Anne Arundel County MD, Consolidated General
Improvement, Water & Sewer, 4.80%, 2/1/2008 AA+ 525,190
-------------------------------------------------------
250,000 Baltimore County MD, Consolidated Public Improvement,
6.40%, (Series A)/(FGIC Insured), 10/15/2001 AAA 271,100
-------------------------------------------------------
250,000 Baltimore County MD, Consolidated Public Improvement,
6.25%, (Series C)/(FGIC Insured), 10/15/2003 AAA 268,565
-------------------------------------------------------
300,000 Baltimore County MD, Consolidated Public Improvement,
6.125%, 7/1/2008 Aaa 312,600
-------------------------------------------------------
1,000,000 Baltimore County MD, Revenue Authority, Refunding
Revenue Bonds, 5.25%, 7/1/2008 A 931,450
-------------------------------------------------------
400,000 Baltimore County MD, Revenue Authority, Refunding
Revenue Bonds, 4.90%, 10/1/2008 Aa-1 362,284
-------------------------------------------------------
395,000 Baltimore County MD, 63rd Met District, 5.80%, 7/1/2003 Aaa 411,013
-------------------------------------------------------
500,000 Baltimore County MD, 63rd Met District, 6.10%, 7/1/2006 Aaa 524,415
-------------------------------------------------------
850,000 Baltimore County MD, 63rd Met District, 6.125%,
7/1/2007 Aaa 887,051
-------------------------------------------------------
500,000 Baltimore MD, CTFS Partner, 5.50% (Series 1993B)/(MBIA
Insured), 4/1/2007 AAA 487,770
-------------------------------------------------------
500,000 Baltimore MD, Consolidated Public Improvement, 5.30%,
(Series A)/(AMBAC Insured), 10/15/2007 AAA 478,565
-------------------------------------------------------
1,000,000 Baltimore MD, Consolidated Public Improvement, 5.375%,
(Series A)/(AMBAC Insured), 10/15/2008 AAA 951,060
-------------------------------------------------------
250,000 Bel Air MD, CTFS Partner Capital Refunding Notes,
5.40%, (Series 1993)/(Capital Guaranty), 6/1/2007 AAA 241,527
-------------------------------------------------------
250,000 Bel Air MD, CTFS Partner Capital Refunding Notes,
5.40%, (Series 1993)/(Capital Guaranty), 12/1/2007 AAA 240,858
-------------------------------------------------------
250,000 Bel Air MD, CTFS Partner Capital Refunding Notes 5.50%,
(Series 1993)/(Capital Guaranty), 6/1/2008 AAA 241,045
-------------------------------------------------------
250,000 Bel Air MD, CTFS Partner Capital Refunding Notes,
5.50%, (Series 1993)/(Capital Guaranty), 12/1/2008 AAA 240,487
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 2,000,000 Calvert County MD, Public Improvement, Refunding
Revenue Bonds, 4.875%, 7/15/2008 Aa $ 1,791,260
-------------------------------------------------------
125,000 Carroll County MD, Public Improvement, Refunding
Revenue Bonds, 5.75%, 12/1/2005 AA 127,993
-------------------------------------------------------
250,000 Carroll County MD, Public Improvement, Refunding
Revenue Bonds, 5.875%, 12/1/2006 Aaa 263,040
-------------------------------------------------------
200,000 Carroll County MD, Public Improvement, Refunding
Revenue Bonds, 6.00%, 12/1/2007 Aaa 211,864
-------------------------------------------------------
500,000 Cecil County, MD, Public Improvement, 5.10%, (FGIC
Insured), 12/1/2007 AAA 476,300
-------------------------------------------------------
500,000 Charles County MD, Public Improvement, 5.00%, 6/1/2009 Aa 454,795
-------------------------------------------------------
250,000 Cumberland, MD, Public Improvement, 4.90%, (Series A)/
(FGIC Insured), 5/1/2008 AAA 229,663
-------------------------------------------------------
300,000 Frederick County MD, 5.55%, 7/1/2007 AA- 301,134
-------------------------------------------------------
250,000 Frederick County MD, 5.20%, (Series B), 5/1/2008 Aa 239,627
-------------------------------------------------------
200,000 Frederick County MD, Refunding Revenue Bonds, 6.125%,
(FGIC Insured), 12/1/2006 AAA 210,132
-------------------------------------------------------
400,000 Frederick County MD, Refunding Revenue Bonds, 5.65%,
7/1/2008 Aa 391,916
-------------------------------------------------------
500,000 Gaithersburg, MD, EDR, 5.00%, (Asbury Methodist
Church), 1/1/2003 A 485,550
-------------------------------------------------------
700,000 Gaithersburg, MD, EDR, 5.10%, (Asbury Methodist
Church), 1/1/2004 A 669,389
-------------------------------------------------------
250,000 Gaithersburg, MD, EDR, 5.20%, (Asbury Methodist
Church), 1/1/2005 A 239,245
-------------------------------------------------------
250,000 Harford County MD, GO Bonds, 6.25%, 12/1/2006 Aa 262,412
-------------------------------------------------------
100,000 Harford County MD, Public Improvement, 5.50%, 9/1/2005 Aa 100,309
-------------------------------------------------------
750,000 Harford County MD, Public Improvement, 5.70%, 9/1/2007 Aa 753,465
-------------------------------------------------------
1,000,000 Harford County MD, Public Improvement, Refunding
Revenue Bonds, 4.80%, 12/1/2008 Aa 893,850
-------------------------------------------------------
500,000 Howard County MD, 5.25%, 8/15/2005 AA+ 490,740
-------------------------------------------------------
1,350,000 Howard County MD, Public Improvement, Refunding Revenue
Bonds, 5.25%, (Series A), 8/15/2007 AA+ 1,297,242
-------------------------------------------------------
375,000 Laurel MD, Refunding Revenue Bonds, 6.60%, (Series A)/
(MBIA Insured), 7/1/2003 AAA 409,121
-------------------------------------------------------
300,000 Maryland State, Community Development Administration,
SFM, 5.20%, 4/1/2003 Aa 293,262
-------------------------------------------------------
120,000 Maryland State, Community Development Administration,
SFM, 6.40%, 4/1/2004 Aa 124,712
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 1,000,000 Maryland National Capital Parks & Planning Commission,
6.10%, 7/1/2006 AA $ 1,048,030
-------------------------------------------------------
100,000 Maryland State Housing & Community Development 6.875%,
(Series A)/(AMBAC Insured), 6/1/2006 AAA 108,530
-------------------------------------------------------
200,000 Maryland State Department of Transportation, 6.60%,
11/1/2000 AA 215,538
-------------------------------------------------------
250,000 Maryland State Department of Transportation, 5.40%,
7/15/2004 AA 248,225
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, Refunding
Revenue Bonds, 5.30%, (Northwest Hospital Center)/
(AMBAC Insured), 7/1/2006 AAA 483,770
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, 5.30%,
(Greater Baltimore Medical Center)/(FGIC Insured),
7/1/2006 AAA 483,770
-------------------------------------------------------
600,000 Maryland State Health & Higher Education, Refunding
Revenue Bonds, 5.10%, (Suburban Hospital), 7/1/2007 A-1 550,032
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, 5.35%,
(Greater Baltimore Medical Center)/(FGIC Insured),
7/1/2007 AAA 480,235
-------------------------------------------------------
300,000 Maryland State Health & Higher Education, 6.00%, (North
Arundel Hospital)/(MBIA Insured), 7/1/2007 AAA 306,363
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, 5.10%,
(Surburban Hospital), 7/1/2008 A-1 455,465
-------------------------------------------------------
1,000,000 Maryland State Health & Higher Education, 5.30%,
(Francis Scott Key Medical Center)/(FGIC Insured),
7/1/2008 AAA 943,530
-------------------------------------------------------
500,000 Maryland State Health & Higher Education, 5.10%,
(Surburban Hospital), 7/1/2009 A-1 449,620
-------------------------------------------------------
150,000 Maryland Water Quality Revenue Financing Revolving Loan
Fund, 6.00%, (Series B), 9/1/2001 AA 157,205
-------------------------------------------------------
100,000 Maryland Water Quality Revenue Financing Revolving Loan
Fund, 6.85%, (Series A), 9/1/2004 AA 109,462
-------------------------------------------------------
750,000 Maryland State & Local Facility, 5.50%, 2/1/2008 AAA 746,347
-------------------------------------------------------
1,000,000 Maryland State, 6.70%, (Series 2), 7/15/2001 AAA 1,103,320
-------------------------------------------------------
250,000 Maryland State, 6.50%, (Series 1), 7/1/2002 AAA 271,553
-------------------------------------------------------
200,000 Maryland State, 6.40%, (Series 3), 7/15/2003 AAA 215,704
-------------------------------------------------------
200,000 Maryland State, 6.00%, (Series 4), 10/15/2005 AAA 210,752
-------------------------------------------------------
400,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, 6.625%, 7/1/2003 AAA 442,320
-------------------------------------------------------
500,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, 5.70%, 7/1/2005 A+ 506,165
-------------------------------------------------------
850,000 Maryland State Transportation Authority, Refunding
Revenue Bonds, 5.80%, 7/1/2006 A+ 874,718
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 300,000 Montgomery County MD, Housing Opportunity Revenue, SFM,
6.15%, 7/1/2002 Aa $ 310,749
-------------------------------------------------------
115,000 Montgomery County MD, Housing Opportunity Revenue,
Multi--Family Mortgage, 6.90%, 7/1/2004 A 120,587
-------------------------------------------------------
100,000 Montgomery County MD, Housing Opportunity Revenue, SFM,
6.10%, 7/1/2006 Aa 100,746
-------------------------------------------------------
355,000 Montgomery County MD, Housing Opportunity Revenue,
Consolidated SFM, 7.125%, (Series C), 7/1/2006 Aa 369,477
-------------------------------------------------------
250,000 Montgomery County MD, Consolidated Public Improvement,
Refunding Revenue Bonds, 6.90%, (Series A), 4/1/2000 AAA 275,720
-------------------------------------------------------
520,000 Montgomery County MD, Public Improvement, Refunding
Revenue Bonds, 5.75%, (Series A), 7/1/2006 AAA 525,642
-------------------------------------------------------
700,000 Montgomery County MD, Public Improvement, Refunding
Revenue Bonds, 5.80%, (Series A), 7/1/2007 AAA 712,901
-------------------------------------------------------
300,000 Montgomery County MD, Public Improvement, 6.125%,
(Series B), 10/1/2007 AAA 321,522
-------------------------------------------------------
1,000,000 Ocean City MD, 5.50%, 3/15/2009 AAA 967,330
-------------------------------------------------------
325,000 Ocean City MD, Refunding Revenue Bonds, 6.00%, (MBIA
Insured), 11/1/2003 AAA 345,924
-------------------------------------------------------
210,000 Ocean City MD, Refunding Revenue Bonds, 6.10%, (MBIA
Insured), 11/1/2004 AAA 224,553
-------------------------------------------------------
380,000 Prince Georges County MD, Justice Center Parking
Facility, Refunding Revenue Bonds, 6.10%, 5/1/2001 AA- 398,533
-------------------------------------------------------
250,000 Prince Georges County MD, Refunding Revenue Bonds,
5.10%, (Cherry Hill Apartments), 3/20/2002 AAA 245,505
-------------------------------------------------------
250,000 Prince Georges County MD, Refunding Revenue Bonds,
5.20%, (Cherry Hill Apartments), 3/20/2003 AAA 245,085
-------------------------------------------------------
560,000 Prince Georges County MD, 5.95%, (Maryland Local
Government Trust), 8/1/2007 Aa 568,579
-------------------------------------------------------
200,000 Prince Georges County MD, Refunding Revenue Bonds,
6.00%, (Series A)/(MBIA Insured), 3/1/2008 AAA 202,070
-------------------------------------------------------
300,000 Prince Georges County MD, Stormwater Management, 5.30%,
3/15/2006 AA 289,941
-------------------------------------------------------
500,000 Prince Georges County MD, Stormwater Management, 5.50%,
3/15/2008 AA 483,910
-------------------------------------------------------
500,000 Prince Georges County MD, Public Improvement, Refunding
Revenue Bonds, 5.25%, 10/1/2008 AA- 470,475
-------------------------------------------------------
1,725,000 Rockville, MD, Refunding Revenue GO Bonds, 4.90%,
4/15/2007 AA+.... 1,590,226
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 150,000 St. Mary's College, 5.35%, (Series A)/(MBIA Insured),
9/1/2008 AAA $ 144,022
-------------------------------------------------------
250,000 St. Mary's County, MD, 4.60%, (St. Mary's Hospital),
9/1/2006 A+ 225,338
-------------------------------------------------------
90,000 Talbot County MD, Public Facility, 6.60%, 5/1/2007 A-1 95,610
-------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue,
6.40%, (Series B), 4/1/2006 AAA 543,330
-------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue,
5.30%, (Series A), 4/1/2007 AA+ 479,150
-------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue,
6.30%, (Series A), 2/1/2008 AA+ 514,255
-------------------------------------------------------
500,000 University MD, Auxiliary Facility & Tuition Revenue,
5.375%, (Series A), 4/1/2008 AA+ 477,510
-------------------------------------------------------
1,000,000 University MD, Auxiliary Facility & Tuition Revenue,
Refunding Revenue Bonds, 4.90%, (Series C), 10/1/2008 AA+ 898,040
-------------------------------------------------------
1,000,000 University MD, Auxiliary Facility & Tuition Revenue,
Refunding Revenue Bonds, 5.00%, (Series C), 10/1/2009 AA+ 907,500
-------------------------------------------------------
350,000 Washington County MD, Refunding Revenue Bonds, 5.80%,
1/1/2001 A 361,792
-------------------------------------------------------
400,000 Washington County MD, Public Improvement, Refunding
Revenue Bonds, 5.25%, (FGIC Insured), 1/1/2007 AAA 383,456
-------------------------------------------------------
300,000 Washington County MD, Public Improvement, 5.75%,
1/1/2007 A+ 306,483
-------------------------------------------------------
475,000 Washington County MD, Public Improvement, 5.80%,
1/1/2008 A+ 483,697
-------------------------------------------------------
550,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 6.40%, 11/1/2004 Aa-l 596,541
-------------------------------------------------------
750,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 6.00%, 6/1/2005 Aa-1 762,480
-------------------------------------------------------
1,000,000 Washington Suburban Sanitation District MD, 5.25%,,
(Series F), 1/1/2007 A 958,640
-------------------------------------------------------
400,000 Washington Suburban Sanitation District MD, 6.10%,
6/1/2007 Aa-1 406,620
-------------------------------------------------------
200,000 Washington Suburban Sanitation District MD, 6.80%,
6/1/2007 Aa-1 221,184
-------------------------------------------------------
155,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 5.30%, (Series F)/(FGIC Insured),
1/1/2008 AAA 147,992
-------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
PRINCIPAL RATING:
AMOUNT MOODY'S
OR SHARES ISSUE OR S&P* VALUE
- ----------- ------------------------------------------------------- ------- -----------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 300,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 5.30%, 6/1/2008 Aa-1 $ 283,953
-------------------------------------------------------
300,000 Washington Suburban Sanitation District MD, Refunding
Revenue Bonds, 5.20%,. 12/1/2008 Aa-1 280,668
------------------------------------------------------- -----------
TOTAL LONG--TERM MUNICIPAL SECURITIES
(IDENTIFIED COST, $49,594,763) 48,581,527
------------------------------------------------------- -----------
MUTUAL FUND SHARES--0.0%
- -------------------------------------------------------------------------
17 Goldman Sachs Institutional Tax Exempt NR 17
-------------------------------------------------------
18 Municipal Fund for Temporary Investment NR 18
------------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE)
(NOTE 2A) 35
------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $49,594,798) $48,581,562+
------------------------------------------------------- -----------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $49,594,798. The
net unrealized depreciation of investments on a federal tax basis amounts to
$1,013,236, which is comprised of $556,861 unrealized appreciation and
$1,570,097 unrealized depreciation at March 31, 1994.
Note: The categories of investments are shown as a percentage of net assets
($48,049,291) at March 31, 1994.
* Please refer to the Statement of Additional Information for an explanation of
the credit ratings.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC --American Municipal Bond Assurance Corp.
FGIC --Financial Guaranty Insurance Co.
EDR --Economic Development Revenue Bonds
ETM(s) --Escrowed to Maturity
GO --General Obligations
MBIA --Municipal Bond Investors Assurance
SFM --Single Family Mortgage
</TABLE>
(See Notes which are an integral part of the Financial Statements)
TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
U.S. TREASURY BILLS--35.4%
- -------------------------------------------------------------------------------------
$101,000,000 4/7/94-7/28/94 $100,565,438
---------------------------------------------------------------- ------------
U.S. TREASURY NOTES--24.8%
- -------------------------------------------------------------------------------------
70,000,000 3.875%-8.25%, 4/30/94-2/28/95 70,382,922
---------------------------------------------------------------- ------------
*REPURCHASE AGREEMENTS--39.8%
- -------------------------------------------------------------------------------------
44,000,000 Kidder, Peabody & Co., Inc., 3.50%, dated 3/31/94, due 4/4/94 44,000,000
----------------------------------------------------------------
25,202,163 Nikko Securities Co. International, Inc., 3.55%, dated 3/31/94,
due 4/4/94 25,202,163
----------------------------------------------------------------
44,000,000 Prudential Securities, Inc., 3.50%, dated 3/31/94, due 4/4/94 44,000,000
---------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS (NOTE 2B) 113,202,163
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $284,150,523+
---------------------------------------------------------------- ------------
</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.
Note: The categories of investments are shown as a percentage of net assets
($284,347,506) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMERCIAL PAPER--6.4%
- -------------------------------------------------------------------------------------
BANKING--2.1%
-----------------------------------------------------------------
$ 3,000,000 Barclays Bank, Canada, 3.16%, 6/6/94 $ 2,982,620
----------------------------------------------------------------- ------------
INSURANCE--2.2%
-----------------------------------------------------------------
3,000,000 Marsh & McLennan Cos, Inc., 3.22%, 4/5/94 2,998,927
----------------------------------------------------------------- ------------
OIL/GAS-- 2.1%
-----------------------------------------------------------------
3,000,000 Texaco, Inc., 3.52%, 8/10/94 2,961,573
----------------------------------------------------------------- ------------
TOTAL COMMERCIAL PAPER 8,943,120
----------------------------------------------------------------- ------------
CORPORATE NOTES--30.8%
- -------------------------------------------------------------------------------------
BANKING--FINANCE--4.0%
-----------------------------------------------------------------
1,000,000 Associates Corp. of North America, 8.80%, 1/14/95 1,031,770
-----------------------------------------------------------------
1,000,000 Security Pacific Corp., 6.875%, 2/15/95 1,024,023
-----------------------------------------------------------------
1,000,000 Security Pacific Corp., Medium Term Note, 6.80%, 12/23/94 1,022,033
-----------------------------------------------------------------
2,500,000 Security Pacific Corp., Medium Term Note, 7.00%, 12/15/94 2,557,200
----------------------------------------------------------------- ------------
Total 5,635,026
----------------------------------------------------------------- ------------
FINANCE--AUTOMOTIVE--5.1%
-----------------------------------------------------------------
1,000,000 Ford Motor Credit Co., Medium Term Note, 5.55%, 12/14/94 1,112,165
-----------------------------------------------------------------
2,000,000 Ford Motor Credit Co., Medium Term Note, 5.50%, 12/20/94 2,025,443
-----------------------------------------------------------------
3,000,000 Ford Motor Credit Co., 9.40%, 5/26/94 3,026,428
-----------------------------------------------------------------
1,000,000 Toyota Motor Credit Co., 7.10%, 8/15/94 1,012,346
----------------------------------------------------------------- ------------
Total 7,176,382
----------------------------------------------------------------- ------------
FINANCIAL SERVICES--13.0%
-----------------------------------------------------------------
1,250,000 American General Finance Corp., 9.43%, 6/14/94 1,264,987
-----------------------------------------------------------------
800,000 Avco Financial Services, Inc., 8.875%, 1/15/95 832,009
-----------------------------------------------------------------
1,000,000 CIT Group Holdings Inc., 8.60%, 12/1/94 1,032,596
-----------------------------------------------------------------
4,500,000 CIT Group Holdings Inc., 8.87%, 8/15/94 4,588,384
-----------------------------------------------------------------
2,000,000 General Electric Capital Corp., 8.25%, 1/14/95 2,071,282
-----------------------------------------------------------------
1,000,000 Norwest Financial Inc., 8.90%, 6/15/94 1,011,173
-----------------------------------------------------------------
1,000,000 PNC Funding Corp., 3.55%, 1/20/95 999,585
-----------------------------------------------------------------
6,000,000 Shearson Lehman Hutton, Inc., 12.50%, 10/15/94 6,275,361
----------------------------------------------------------------- ------------
Total 18,075,377
----------------------------------------------------------------- ------------
OIL/GAS--2.9%
-----------------------------------------------------------------
1,000,000 BP America, Inc., 7.03%, 9/12/94 1,014,658
-----------------------------------------------------------------
3,000,000 Texaco Capital, Inc., 9.00%, 10/1/94 3,073,069
----------------------------------------------------------------- ------------
Total 4,087,727
----------------------------------------------------------------- ------------
</TABLE>
MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
CORPORATE NOTES--CONTINUED
- -------------------------------------------------------------------------------------
RESTAURANT/FOOD SERVICE--4.4%
-----------------------------------------------------------------
$ 1,000,000 PepsiCo, Inc., 5.875%, 12/15/94 $ 1,014,942
-----------------------------------------------------------------
1,200,000 Phillip Morris Cos, Inc., 5.65%, 5/19/94 1,203,574
-----------------------------------------------------------------
3,835,000 Phillip Morris Cos, Inc., 8.70%, 8/1/94 3,900,122
----------------------------------------------------------------- ------------
Total 6,118,638
----------------------------------------------------------------- ------------
TELECOMMUNICATIONS--0.7%
-----------------------------------------------------------------
1,000,000 Southwestern Bell Corp., 7.70%, 6/1/94 1,007,080
----------------------------------------------------------------- ------------
UTILITIES--0.7%
-----------------------------------------------------------------
1,000,000 Virginia Electric & Power Co., 8.05%, 6/20/94 1,009,761
----------------------------------------------------------------- ------------
TOTAL CORPORATE NOTES 43,109,991
----------------------------------------------------------------- ------------
**GOVERNMENT AGENCIES--31.6%
- -------------------------------------------------------------------------------------
3,000,000 Federal Home Loan Mortgage Corp., 3.68%, 6/3/94 3,000,000
-----------------------------------------------------------------
3,000,000 Federal National Mortgage Association, 3.82%, 6/15/94 3,002,244
-----------------------------------------------------------------
38,250,000 Student Loan Marketing Association, 3.77%-3.93%, 4/5/94 38,311,646
----------------------------------------------------------------- ------------
TOTAL GOVERNMENT AGENCIES 44,313,890
----------------------------------------------------------------- ------------
***REPURCHASE AGREEMENTS--33.5%
- -------------------------------------------------------------------------------------
32,957,046 Nikko Securities Co. International Inc., 3.55%, dated 3/31/94,
due 4/4/94 32,957,046
-----------------------------------------------------------------
14,000,000 Prudential Securities, Inc., 3.50%, dated 3/31/94, due 4/4/94 14,000,000
----------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS (NOTE 2B) 46,957,046
----------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $143,324,047+
----------------------------------------------------------------- ------------
</TABLE>
+ Also represents cost for federal tax purposes.
* Each issue shows the rate of discount at the time of purchase for discount
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
($140,099,075) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. VIRGINIA MARYLAND TREASURY
GOVERNMENT VALUE MUNICIPAL MUNICIPAL MONEY MONEY
INCOME EQUITY BOND BOND MARKET MARKET
FUND FUND FUND FUND FUND FUND
- ----------------------------------- ------------ ----------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
- -----------------------------------
Repurchase agreements, at amortized
cost (Note 2B) $ 4,714,720 $ 2,978,012 $ -- $ -- $113,202,163 $ 46,957,046
- -----------------------------------
Investments in other securities
(Note 2A) 226,070,427 76,463,554 115,118,971 48,581,562 170,948,360 96,367,001
- -----------------------------------
Cash -- 361,063 239,675 -- -- --
- -----------------------------------
Interest receivable 3,178,505 294 1,818,860 774,582 934,924 1,152,392
- -----------------------------------
Receivable for Fund shares sold 478,166 202,772 450,807 43,000 -- 50,955
- -----------------------------------
Receivable for investments sold 30,103,125 372,178 -- -- -- --
- -----------------------------------
Dividends receivable -- 202,160 -- -- -- --
- -----------------------------------
Prepaid/deferred expenses (Note 2F) 9,960 9,790 9,009 6,738 20,095 13,431
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Total assets 264,554,903 80,589,823 117,637,322 49,405,882 285,105,542 144,540,825
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
LIABILITIES:
- -----------------------------------
Payable for dollar roll
transactions (Note 2I) 30,920,565 -- -- -- -- --
- -----------------------------------
Payable for investments purchased -- 150,530 1,488,455 1,091,592 -- 4,067,954
- -----------------------------------
Payable to bank -- -- -- 70,659 -- --
- -----------------------------------
Payable for Fund shares repurchased 589,032 203,911 1,184,798 44,166 -- --
- -----------------------------------
Dividends payable 740,230 86 192,715 63,954 613,206 295,760
- -----------------------------------
Accrued expenses and other
liabilities 197,460 103,177 154,388 86,220 144,830 78,036
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Total liabilities 32,447,287 457,704 3,020,356 1,356,591 758,036 4,441,750
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
TOTAL NET ASSETS $232,107,616 $80,132,119 $114,616,966 $48,049,291 $284,347,506 $140,099,075
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
NET ASSETS CONSIST OF:
- -----------------------------------
Paid-in capital $243,291,502 $76,931,482 $116,447,290 $48,886,045 $284,347,506 $140,099,075
- -----------------------------------
Unrealized appreciation
(depreciation) of investments (6,074,647 ) 2,667,575 (1,887,920) (1,013,236) -- --
- -----------------------------------
Accumulated undistributed net
realized gain (loss) on
investments (5,109,239 ) 448,267 57,596 176,482 -- --
- -----------------------------------
Undistributed net investment income -- 84,795 -- -- -- --
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
TOTAL NET ASSETS $232,107,616 $80,132,119 $114,616,966 $48,049,291 $284,347,506 $140,099,075
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
NET ASSET VALUE and Offering Price
Per Share: (Net Assets/Shares
Outstanding)
- -----------------------------------
Trust Shares $10.17 $11.82 $10.47 $10.35 $1.00 $1.00
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Investment Shares $10.17 $11.82 $10.47 $10.35 $1.00 $1.00
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Redemption Price per Share:
Investment Shares $9.97 * $11.58* $10.26* $10.14* $1.00 $1.00
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
SHARES OUTSTANDING:
- -----------------------------------
Trust Shares 10,988,303 4,771,148 3,491,927 1,099,901 263,701,569 130,350,943
- -----------------------------------
Investment Shares 11,834,356 2,006,808 7,456,108 3,542,468 20,645,937 9,748,132
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Total shares outstanding 22,822,659 6,777,956 10,948,035 4,642,369 284,347,506 140,099,075
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
Investments, at identified cost $236,859,794 $76,773,991 $117,006,891 $49,594,798 $ -- $ --
- ----------------------------------- ----------- --------- ---------- --------- ---------- ----------
</TABLE>
* See "Redeeming Shares" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. VIRGINIA MARYLAND TREASURY
GOVERNMENT VALUE MUNICIPAL MUNICIPAL MONEY MONEY
INCOME EQUITY BOND BOND MARKET MARKET
FUND FUND FUND FUND FUND FUND
- ---------------------------------- ------------ ----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- ----------------------------------
Interest income $ 8,087,034 * $ 80,576 $ 3,083,346 $ 1,254,839 $3,170,921 $2,371,018
- ----------------------------------
Dividend income -- 1,033,320 -- -- -- --
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Total income (Notes 2C and 2I) 8,087,034 1,113,896 3,083,346 1,254,839 3,170,921 2,371,018
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
EXPENSES:
- ----------------------------------
Investment advisory fee (Note 5) 890,275 316,259 436,167 176,849 489,806 356,643
- ----------------------------------
Trustees' fees 2,040 941 643 394 495 1,483
- ----------------------------------
Administrative personnel and
services fees (Note 5) 143,048 50,813 70,052 28,404 117,620 85,964
- ----------------------------------
Custodian fees (Note 5) 35,328 16,973 24,660 13,124 32,833 25,096
- ----------------------------------
Transfer and dividend disbursing
agent fees and expenses (Note 5) 66,353 32,369 38,493 32,182 30,156 25,591
- ----------------------------------
Fund share registration costs 34,897 16,363 30,863 24,258 20,202 10,396
- ----------------------------------
Auditing fees 11,318 8,976 8,510 7,216 13,425 11,072
- ----------------------------------
Legal fees 4,600 4,981 4,884 5,506 6,787 5,929
- ----------------------------------
Printing and postage 16,335 16,985 23,438 17,262 14,692 15,767
- ----------------------------------
Recordkeeping fees (Note 5) 39,778 28,379 54,344 41,391 28,115 24,592
- ----------------------------------
Insurance premiums 4,342 2,611 3,929 3,409 4,214 3,984
- ----------------------------------
Distribution services fee (Note 5) 153,261 27,263 94,911 43,974 25,863 12,299
- ----------------------------------
Miscellaneous 8,066 2,750 3,443 1,849 5,751 4,164
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Total expenses 1,409,641 525,663 794,337 395,818 789,959 582,980
- ----------------------------------
Deduct--
- ----------------------------------
Waiver of investment advisory fee
(Note 5) 385,971 105,817 178,914 132,260 195,921 178,321
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Net expenses 1,023,670 419,846 615,423 263,558 594,038 404,659
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Net investment income 7,063,364 694,050 2,467,923 991,281 2,576,883 1,966,359
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
- ----------------------------------
Net realized gain (loss) on
investment transactions
(identified cost basis)-- (3,121,940 ) 511,402 163,074 247,088 -- --
- ----------------------------------
Change in unrealized appreciation
(depreciation) of investment (10,618,994 ) (2,911,894) (7,833,363) (3,756,694) -- --
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Net realized and unrealized
gain (loss) of investments (13,740,934 ) (2,400,492) (7,670,289) (3,509,606) -- --
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
Change in net assets
resulting from operations ($6,677,570 ) ($1,706,442) ($5,202,366) ($2,518,325) $2,576,883 $1,966,359
- ---------------------------------- ------------ ---------- ---------- ---------- --------- ---------
</TABLE>
* Net of interest expense of $391,121 (Note 2I).
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT VIRGINIA MUNICIPAL
INCOME FUND VALUE EQUITY FUND BOND FUND
---------------------------- ---------------------------- ----------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1994* 1993 1994* 1993 1994* 1993
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
- ----------------------------
OPERATIONS--
- ----------------------------
Net investment income $ 7,063,364 $ 11,055,396 $ 694,050 $ 1,402,571 $ 2,467,923 $ 3,289,022
- ----------------------------
Net realized gain (loss) on
investment transactions (3,121,940) 910,697 511,402 1,411,849 163,074 761,679
- ----------------------------
Change in unrealized
appreciation (depreciation)
of investments (10,618,994) 679,105 (2,911,894) 765,999 (7,833,363) 5,201,265
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
resulting from
operations (6,677,570) 12,645,198 (1,706,442) 3,580,419 (5,202,366) 9,251,966
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
(NOTE 3)--
- ----------------------------
Dividends to shareholders
from net investment income:
- ----------------------------
Trust Shares (3,418,191) (6,368,982) (513,503) (1,243,902) (896,140) (1,422,592)
- ----------------------------
Investment Shares (3,505,098) (4,826,489) (166,995) (178,911) (1,571,783) (1,866,430)
- ----------------------------
Distributions to
shareholders from net
realized gain on investment
transactions:
- ----------------------------
Trust Shares (1,411,493) (758,969) (1,031,282) (716,366) (300,602) (121,101)
- ----------------------------
Investment Shares (1,485,610) (462,035) (352,940) (43,355) (566,570) (141,494)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from distributions to
shareholders (9,820,392) (12,416,475) (2,064,720) (2,182,534) (3,335,095) (3,551,617)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
FUND SHARE (PRINCIPAL)
TRANSACTIONS (NOTE 4)--
- ----------------------------
Net proceeds from
sale of shares 39,734,334 118,721,743 14,796,541 43,737,472 29,975,739 68,080,504
- ----------------------------
Net asset value of shares
issued to shareholders
electing to receive
payment of dividends in Fund
shares 4,085,512 4,462,449 1,167,057 1,236,878 1,823,997 1,796,047
- ----------------------------
Cost of shares redeemed (26,734,946) (27,775,953) (16,592,052) (13,711,227) (13,341,649) (12,615,672)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from Fund share
transactions 17,084,900 95,408,239 (628,454) 31,263,123 18,458,087 57,260,879
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets 586,938 95,636,962 (4,399,616) 32,661,008 9,920,626 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 $232,107,616 $231,520,678 $ 80,132,119 $ 84,531,735 $114,616,966 $104,696,340
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Undistributed net investment
income included in net
assets at end of period -- -- $ 84,795 $ 71,243 -- --
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARYLAND MUNICIPAL TREASURY MONEY
BOND FUND MARKET FUND MONEY MARKET FUND
---------------------------- ---------------------------- ----------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1994* 1993 1994* 1993 1994* 1993
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
- ----------------------------
OPERATIONS--
- ----------------------------
Net investment income $ 991,281 $ 1,414,559 $ 2,576,883 $ 4,770,981 $ 1,966,359 $ 4,118,393
- ----------------------------
Net realized gain (loss) on
investment transactions 247,088 367,211 -- -- -- --
- ----------------------------
Change in unrealized
appreciation (depreciation)
of investments (3,756,694) 2,363,638 -- -- -- --
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
resulting from
operations (2,518,325) 4,145,408 2,576,883 4,770,981 1,966,359 4,118,393
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
(NOTE 3)--
- ----------------------------
Dividends to shareholders
from net investment income:
- ----------------------------
Trust Shares (257,162) (371,280) (2,332,388) (4,372,212) (1,842,557) (3,879,216)
- ----------------------------
Investment Shares (734,119) (1,043,279) (244,495) (398,769) (123,802) (239,177)
- ----------------------------
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 (1,429,201) (1,418,949) (2,576,883) (4,770,981) (1,966,359) (4,118,393)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
FUND SHARE (PRINCIPAL)
TRANSACTIONS (NOTE 4)--
- ----------------------------
Net proceeds from
sale of shares 9,193,988 25,050,317 301,845,380 370,185,340 138,910,413 325,689,812
- ----------------------------
Net asset value of shares
issued to shareholders
electing to receive
payment of dividends in Fund
shares 903,254 928,241 245,213 396,094 122,308 239,477
- ----------------------------
Cost of shares redeemed (4,021,149) (2,840,951) (191,045,743) (373,689,837) (143,236,046) (324,046,130)
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from Fund share
transactions 6,076,093 23,137,607 111,044,850 (3,108,403) (4,203,325) 1,883,159
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Change in net assets 2,128,567 25,864,066 111,044,850 (3,108,403) (4,203,325) 1,883,159
- ----------------------------
NET ASSETS:
- ----------------------------
Beginning of period 45,920,724 20,056,658 173,302,656 176,411,059 144,302,400 142,419,241
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
End of period $ 48,049,291 $ 45,920,724 $284,347,506 $173,302,656 $140,099,075 $144,302,400
- ---------------------------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
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 0.31 0.66 0.75 0.78
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.60) 0.03 0.50 0.54
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.29) 0.69 1.25 1.32
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.31) (0.66) (0.75) (0.78)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.13) (0.08) (0.09) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.44) (0.74) (0.84) (0.78)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $10.17 $10.90 $10.95 $10.54
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (3.00%) 6.82% 12.42% 14.00%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 0.98%(a) 0.77% 0.52% 0.64%(a)
- -------------------------------------------------------------------
Net investment income 5.83%(a) 5.91% 7.01% 8.03%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.33%(a) 0.43% 0.65% 0.93%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $120,356 $119,187 $40,274 $10
- -------------------------------------------------------------------
Portfolio turnover rate 140% 154% 201% 101%
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<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 0.32 0.67 0.75 0.78
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.60) 0.03 0.50 0.54
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.28) 0.70 1.25 1.32
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.32) (0.67) (0.75) (0.78)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.13) (0.08) (0.09) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.45) (0.75) (0.84) (0.78)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $10.17 $10.90 $10.95 $10.54
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (2.88%) 6.94% 12.42% 14.00%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 0.73%(a) 0.63% 0.52% 0.64%(a)
- -------------------------------------------------------------------
Net investment income 6.08%(a) 6.17% 7.01% 8.03%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.33%(a) 0.43% 0.65% 0.93%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $111,752 $112,334 $95,610 $27,565
- -------------------------------------------------------------------
Portfolio turnover rate 140% 154% 201% 101%
- -------------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
VALUE EQUITY 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 $12.39 $12.02 $11.86 $10.00
- -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------
Net investment income 0.09 0.24 0.26 0.32
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.37) 0.54 0.46 1.85
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.28) 0.78 0.72 2.17
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.09) (0.25) (0.25) (0.31)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.20) (0.16) (0.31) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.29) (0.41) (0.56) (0.31)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $11.82 $12.39 $12.02 $11.86
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (2.19%) 6.31% 6.31% 22.68%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 1.18%(a) 0.87% 0.95% 0.80%(a)
- -------------------------------------------------------------------
Net investment income 1.46%(a) 1.81% 2.25% 3.05%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(a) 0.55% 0.34% 0.38%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $23,725 $18,691 $2,290 $488
- -------------------------------------------------------------------
Portfolio turnover rate 31% 67% 38% 84%
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<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 0.11 0.28 0.26 0.32
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.38) 0.51 0.46 1.85
- ------------------------------------------------------------------- ----- ----- ----- -----
Total from investment operations (0.27) 0.79 0.72 2.17
- -------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (0.10) (0.26) (0.25) (0.31)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.20) (0.16) (0.31) --
- ------------------------------------------------------------------- ----- ----- ----- -----
Total distributions (0.30) (0.42) (0.56) (0.31)
- ------------------------------------------------------------------- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $11.82 $12.39 $12.02 $11.86
- ------------------------------------------------------------------- ----- ----- ----- -----
TOTAL RETURN*** (2.08%) 6.42% 6.31% 22.68%
- -------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------
Expenses 0.93%(a) 0.66% 0.95% 0.80%(a)
- -------------------------------------------------------------------
Net investment income 1.71%(a) 2.09% 2.25% 3.05%(a)
- -------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(a) 0.55% 0.34% 0.38%(a)
- -------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------
Net assets, end of period (000 omitted) $56,407 $65,841 $49,581 $37,032
- -------------------------------------------------------------------
Portfolio turnover rate 31% 67% 38% 84%
- -------------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statement)
VIRGINIA MUNICIPAL BOND 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 $11.26 $10.46 $10.18 $10.00
- ---------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------
Net investment income 0.23 0.51 0.54 0.57
- ---------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.71) 0.89 0.29 0.18
- --------------------------------------------------------------------- ------ ------ ------ ------
Total from investment operations (0.48) 1.40 0.83 0.75
- ---------------------------------------------------------------------
LESS DISTRIBUTIONS
- ---------------------------------------------------------------------
Dividends to shareholders from net investment income (0.23) (0.51) (0.54) (0.57)
- ---------------------------------------------------------------------
Distributions to shareholders from net realized gain on investment
transactions (0.08) (0.09) (0.01) --
- --------------------------------------------------------------------- ------ ------ ------ ------
Total distributions (0.31) (0.60) (0.55) (0.57)
- --------------------------------------------------------------------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.47 $11.26 $10.46 $10.18
- --------------------------------------------------------------------- ------ ------ ------ ------
TOTAL RETURN*** (4.38%) 13.49% 8.51% 7.64%
- ---------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------------------------
Expenses 1.14%(a) 0.90% 0.83% 0.47%(a)
- ---------------------------------------------------------------------
Net investment income 4.16%(a) 4.68% 5.14% 6.08%(a)
- ---------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.31%(a) 0.50% 0.86% 1.70%(a)
- ---------------------------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------------------------
Net assets, end of period (000 omitted) $78,061 $63,492 $20,883 $ 6,031
- ---------------------------------------------------------------------
Portfolio turnover rate 13% 17% 51% 27%
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<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 0.24 0.53 0.54 0.57
- ---------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.71) 0.89 0.29 0.18
- --------------------------------------------------------------------- ------ ------ ------ ------
Total from investment operations (0.47) 1.42 0.83 0.75
- ---------------------------------------------------------------------
LESS DISTRIBUTIONS
- ---------------------------------------------------------------------
Dividends to shareholders from net investment income (0.24) (0.53) (0.54) (0.57)
- ---------------------------------------------------------------------
Distributions to shareholders from net realized gain on investment
transactions (0.08) (0.09) (0.01) --
- --------------------------------------------------------------------- ------ ------ ------ ------
Total distributions (0.32) (0.62) (0.55) (0.57)
- --------------------------------------------------------------------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.47 $11.26 $10.46 $10.18
- --------------------------------------------------------------------- ------ ------ ------ ------
TOTAL RETURN*** (4.26%) 13.62% 8.51% 7.64%
- ---------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------------------------
Expenses 0.89%(a) 0.75% 0.83% 0.47%(a)
- ---------------------------------------------------------------------
Net investment income 4.41%(a) 4.85% 5.14% 6.08%(a)
- ---------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.31%(a) 0.50% 0.86% 1.70%(a)
- ---------------------------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------------------------
Net assets, end of period (000 omitted) $36,556 $41,204 $20,852 $ 8,546
- ---------------------------------------------------------------------
Portfolio turnover rate 13% 17% 51% 27%
- ---------------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
MARYLAND MUNICIPAL BOND 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 $11.24 $10.39 $10.10 $10.00
- -----------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------
Net investment income 0.23 0.49 0.54 0.53
- -----------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.79) 0.85 0.29 0.10
- ----------------------------------------------------------------- ------ ------ ----- -----
Total from investment operations (0.56) 1.34 0.83 0.63
- -----------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------
Dividends to shareholders from net investment income (0.23) (0.49) (0.54) (0.53)
- -----------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.10) -- -- --
- ----------------------------------------------------------------- ------ ------ ----- -----
Total distributions (0.33) (0.49) (0.54) (0.53)
- ----------------------------------------------------------------- ------ ------ ----- -----
NET ASSET VALUE, END OF PERIOD $10.35 $11.24 $10.39 $10.10
- ----------------------------------------------------------------- ------ ------ ----- -----
TOTAL RETURN*** (5.11%) 13.24% 8.31% 6.64%
- -----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------
Expenses 1.18%(a) 1.00% 0.59% 0.60%(a)
- -----------------------------------------------------------------
Net investment income 4.14%(a) 4.50% 5.11% 5.66%(a)
- -----------------------------------------------------------------
Expense waiver/reimbursement (b) 0.56%(a) 0.77% 1.91% 1.05%(a)
- -----------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------
Net assets, end of period (000 omitted) $36,665 $33,907 $14,053 $2,940
- -----------------------------------------------------------------
Portfolio turnover rate 15% 23% 34% 35%
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<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 0.24 0.50 0.54 0.53
- -----------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.79) 0.85 0.29 0.10
- ----------------------------------------------------------------- ------ ------ ----- -----
Total from investment operations (0.55) 1.35 0.83 0.63
- -----------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------
Dividends to shareholders from net investment income (0.24) (0.50) (0.54) (0.53)
- -----------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.10) -- -- --
- ----------------------------------------------------------------- ------ ------ ----- -----
Total distributions (0.34) (0.50) (0.54) (0.53)
- ----------------------------------------------------------------- ------ ------ ----- -----
NET ASSET VALUE, END OF PERIOD $10.35 $11.24 $10.39 $10.10
- ----------------------------------------------------------------- ------ ------ ----- -----
TOTAL RETURN*** (4.99%) 13.37% 8.31% 6.64%
- -----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------
Expenses 0.93%(a) 0.86% 0.59% 0.60%(a)
- -----------------------------------------------------------------
Net investment income 4.39%(a) 4.64% 5.11% 5.66%(a)
- -----------------------------------------------------------------
Expense waiver/reimbursement (b) 0.56%(a) 0.77% 1.91% 1.05%(a)
- -----------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------
Net assets, end of period (000 omitted) $11,384 $12,014 $6,004 $ 556
- -----------------------------------------------------------------
Portfolio turnover rate 15% 23% 34% 35%
- -----------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
TREASURY MONEY MARKET 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 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------
Net investment income 0.01 0.02 0.04 0.06
- -------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.02) (0.04) (0.06)
- ------------------------------------------------------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------- ------ ------ ------ ------
TOTAL RETURN*** 1.19% 2.52% 3.61% 5.90%
- -------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------
Expenses 0.83%(a) 0.70% 0.70% 0.51%(a)
- -------------------------------------------------------
Net investment income 2.41%(a) 2.47% 3.49% 5.65%(a)
- -------------------------------------------------------
Expense waiver/reimbursement (b) 0.20%(a) 0.20% 0.11% 0.27%(a)
- -------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------
Net assets, end of period (000 omitted) $20,646 $20,382 $12,960 $548
- -------------------------------------------------------
</TABLE>
<TABLE>
<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 0.01 0.03 0.04 0.06
- -------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.03) (0.04) (0.06)
- ------------------------------------------------------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------- ------ ------ ------ ------
TOTAL RETURN*** 1.31% 2.64% 3.61% 5.90%
- -------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------
Expenses 0.58%(a) 0.58% 0.70% 0.51%(a)
- -------------------------------------------------------
Net investment income 2.66%(a) 2.60% 3.49% 5.65%(a)
- -------------------------------------------------------
Expense waiver/reimbursement (b) 0.20%(a) 0.20% 0.11% 0.27%(a)
- -------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------
Net assets, end of period (000 omitted) $263,702 $152,921 $163,451 $129,959
- -------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET 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 $1.00 $100 $1.00 $1.00
- -------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------
Net investment income 0.01 0.03 0.04 0.06
- ------------------------------------------------------------- ------ ------ ------ ------
LESS DISTRIBUTIONS
- -------------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.03) (0.04) (0.06)
- ------------------------------------------------------------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------- ------ ------ ------ ------
TOTAL RETURN*** 1.28% 2.77% 3.79% 5.92%
- -------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------
Expenses 0.80%(a) 0.64% 0.64% 0.51%(a)
- -------------------------------------------------------------
Net investment income 2.52%(a) 2.68% 3.64% 5.99%(a)
- -------------------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(a) 0.30% 0.29% 0.36%(a)
- -------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------
Net assets, end of period (000 omitted) $9,748 $9,905 $5,803 $1
- -------------------------------------------------------------
</TABLE>
<TABLE>
<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 0.01 0.03 0.04 0.06
- ------------------------------------------------------------- ------ ------ ------ ------
LESS DISTRIBUTIONS
- -------------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.03) (0.04) (0.06)
- ------------------------------------------------------------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------- ------ ------ ------ ------
TOTAL RETURN*** 1.41% 2.89% 3.79% 5.92%
- -------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------
Expenses 0.55%(a) 0.50% 0.64% 0.51%(a)
- -------------------------------------------------------------
Net investment income 2.77%(a) 2.83% 3.64% 5.99%(a)
- -------------------------------------------------------------
Expense waiver/reimbursement (b) 0.25%(a) 0.30% 0.29% 0.36%(a)
- -------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------
Net assets, end of period (000 omitted) $130,351 $134,397 $136,616 $57,432
- -------------------------------------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** 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 (Note 5).
(See Notes which are an integral part of the Financial Statements)
SIGNET SELECT FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Signet Select Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended, as an open-end, management investment company. The Trust
consists of six separate portfolios (hereinafter each individually referred to
as a "Fund" or collectively as the "Funds") at March 31, 1994, as follows:
U.S. Government Income Fund
Value Equity Fund
Virginia Municipal Bond Fund
Maryland Municipal Bond Fund
Treasury Money Market Fund
Money Market Fund
The assets of each Fund of the Trust are segregated and a shareholder's interest
is limited to the Fund in which shares are held.
Each Fund provides two classes of shares ("Investment Shares" and "Trust
Shares"). Investment Shares will be identical in all respects to Trust Shares
except that Investment Shares may be subject to a redemption fee and will be
sold pursuant to a distribution plan (the "Plan") adopted in accordance with the
Investment Company Act Rule 12b-1. Under the Plan, the Funds will pay Federated
Securities Corp. (the "Distributor") a fee at an annual rate up to 0.25 of 1% of
the average net asset value of Investment Shares of the U.S. Government Income
Fund, the Value Equity Fund, the Virginia Municipal Bond Fund and the Maryland
Municipal Bond Fund and up to 0.35 of 1% of the average net asset value of
Investment Shares of the Treasury Money Market Fund and the Money Market Fund to
finance any activity which is principally intended to result in the sale of
Investment Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--Listed equity securities, held by the Value Equity Fund, are
valued at the last sale price reported on national securities exchanges or, if there has
been no sale on the day, at the mean between bid and asked prices. Unlisted equity
securities are valued at the latest bid prices. Bonds and other fixed income portfolio
securities (which may trade on a national securities exchange and/or over the counter)
are valued on the basis of prices provided by an independent pricing service, when such
prices are believed to reflect the fair market value of such securities. Short-term
obligations with maturities of 60 days or less are valued at amortized cost, which
approximates value.
U.S. government obligations, held by the U.S. Government Income Fund, are valued at the
mean between the over-the-counter bid and asked prices as furnished by an independent
pricing service. U.S. government obligations and other short-term obligations maturing in
60 days or less are valued at amortized cost, which approximates value.
Municipal bonds, held by the Maryland Municipal Bond Fund and the Virginia Municipal Bond
Fund, are valued at fair value. An independent pricing service values the Funds'
municipal bonds taking into consideration yield, stability, risk, quality, coupon,
maturity, type of issue, trading characteristics, special circumstances of a security or
trading market, and any other market factors or market data it deems relevant in
determining valuations for normal institutional size trading units of
</TABLE>
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
debt securities, and does not rely exclusively on quoted prices. The Board of Trustees
(the "Trustees") have determined that the fair value of debt securities with remaining
maturities of 60 days or less shall be their amortized cost value unless the particular
circumstances of the security indicate otherwise.
Since the Maryland Municipal Bond Fund and the Virginia Municipal Bond Fund may invest a
substantial portion of the 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 for the Maryland Municipal Bond Fund to reduce the risk associated with such
factors, at March 31, 1994, 18.0% of the securities in the portfolio of investments are
backed by bond insurance of various financial guaranty assurance agencies. The aggregate
percentages by financial agency ranged from 2.00% to 8.02% of total investments.
In order for the Virginia Municipal Bond Fund to reduce the risk associated with such
factors, at March 31, 1994, 4.70% of the securities in the 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 agency
ranged from 0.4% to 2.2% of total investments.
Securities held by the Money Market Fund and the Treasury Money Market Fund are valued at
amortized cost. The Funds' use of the amortized cost method to value their portfolio
securities is conditioned on their compliance with Rule 2a-7 under the Investment Company
Act of 1940.
Investments in other regulated investment companies are valued at net asset value.
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 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 securities to ensure the existence of a proper level of
collateral. The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions such as broker/dealers which are deemed by the Funds'
adviser to be creditworthy pursuant to guidelines established by 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. INCOME--Dividend income for the Value Equity Fund is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis. Interest income includes interest and
discount earned (net of premium) on short-term obligations, and interest earned on all
other debt securities including original issue discount as required by the Internal
Revenue Code. Dividends to shareholders and capital gain distributions, if any, are
recorded on the ex-dividend date.
Interest income for the U.S. Government Income Fund is recorded on the accrual basis.
Interest income includes interest and discount earned (net of premium) on short-term
obligations, and interest earned on all other debt securities including original issue
discount as required by the Internal Revenue Code.
Interest income for the Maryland Municipal Bond Fund and the Virginia Municipal Bond Fund
is recorded on the accrual basis. Interest income includes interest earned net of
premium, and original issue discount as required by the Internal Revenue Code.
Interest income for the Treasury Money Market Fund and the Money Market Fund is recorded
on the accrual basis. Interest income includes interest and discount earned (net of
premium), including original issue discount as required by the Internal Revenue Code,
plus realized net gains, if any, on portfolio securities.
</TABLE>
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
D. FEDERAL TAXES--It is the policy of the Funds to comply with the provisions of the
Internal Revenue Code applicable to investment companies and to distribute to
shareholders each year all of their net income, including any net realized gain on
investments. Accordingly, no provision for federal tax is necessary.
Dividends paid by the Maryland Municipal Bond Fund and the Virginia Municipal Bond Fund
representing net interest received on tax-exempt municipal securities are not includable
by shareholders as gross income for federal tax purposes because the Funds intend to meet
certain requirements of the Internal Revenue Code applicable to regulated investment
companies which will enable the payment of tax-exempt interest dividends. The portion of
such interest, if any, earned on private activity municipal bonds issued after August 7,
1986, may be considered a tax preference item to shareholders.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in when-issued or
delayed delivery transactions. To the extent the Funds engage in such transactions, they
will do so for the purpose of acquiring portfolio securities consistent with their
investment objectives and policies and not for the purpose of investment leverage. The
Funds will record a when-issued security and the related liability on the trade date.
Until the securities are received and paid for, the Funds will 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--Costs incurred by the Funds in connection with their initial share
registration, other than organizational expenses, were deferred and are being amortized
on a straight-line basis through September 1995.
G. EXPENSES--Expenses of the Funds (other than distribution service fees) and waivers and
reimbursements, if any, are allocated to each class of shares based on their relative
daily average net assets for the period. Expenses incurred by the Funds which do not
specifically relate to an individual fund are allocated among all Funds based on a Fund's
relative net asset value size or as deemed appropriate by the administrator.
H. OTHER--Investment transactions are accounted for on the date of the transaction.
I. DOLLAR ROLL TRANSACTIONS--The U.S. Government Income Fund enters into dollar roll
transactions with respect to mortgage securities issued by GNMA, FNMA, and FHLMC in which
the Fund sells mortgage securities to financial institutions and simultaneously agrees to
repurchase substantially similar (same type, coupon, and maturity) securities at a later
date at an agreed upon price. During the period between the sale and repurchase, the Fund
foregoes principal and interest paid on the mortgage security sold. The Fund is
compensated by the interest earned on the cash proceeds of the initial sale and any
additional fee income received on the sale.
</TABLE>
(3) DIVIDENDS
Dividends and distributions are declared and paid quarterly to all shareholders
invested in the Value Equity Fund on the record date. The U.S. Government Income
Fund, the Maryland Municipal Bond Fund, the Virginia Municipal Bond Fund, the
Money Market Fund and the Treasury Money Market Fund compute their net income
daily and, immediately prior to the calculation of their net asset value at the
close of business, declare and record dividends to shareholders of record at the
time of the previous computation of the Funds' net asset value. Payment of
dividends is made monthly in cash, or in additional shares at the net asset
value on the payable date.
Dividends are paid from the net investment income of each class of shares of the
Funds. Net investment income consists of all dividends or interest received by
each class of shares of the Funds, less their expenses. Capital gains realized
by the Maryland Municipal Bond Fund, the U.S. Government Income Fund, the Value
Equity Fund, and the Virginia Municipal Bond Fund, if any, are distributed
proportionately to each class of shares at least once every twelve months.
Dividends will be reinvested
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
in additional shares of the same class at the ex-dividend date net asset value
without a sales charge unless cash payments are requested by shareholders in
writing to the Funds.
(4) 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 INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994:* FUND VALUE EQUITY FUND
- -------------------------------------------------- -------------------------- --------------------------
INVESTMENT SHARES: SHARES DOLLARS SHARES DOLLARS
- -------------------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 1,750,691 $ 18,692,608 560,382 $ 6,934,281
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 386,283 4,085,512 41,526 515,601
- --------------------------------------------------
Shares redeemed (1,234,279) (13,061,133) (104,220) (1,299,103)
- -------------------------------------------------- ---------- ------------ ---------- ------------
902,695 9,716,987 497,688 6,150,779
---------- ------------ ---------- ------------
TRUST SHARES:
- --------------------------------------------------
Shares sold 1,977,299 $ 21,041,726 632,142 $ 7,862,260
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares -- -- 52,458 651,456
- --------------------------------------------------
Shares redeemed (1,292,163) (13,673,813) (1,229,407) (15,292,949)
- -------------------------------------------------- ---------- ------------ ---------- ------------
685,136 7,367,913 (544,807) (6,779,233)
---------- ------------ ---------- ------------
Net change resulting from fund share transactions 1,587,831 $ 17,084,900 (47,119) $ (628,454)
- -------------------------------------------------- ---------- ------------ ---------- ------------
* Six months ended March 31, 1994 (unaudited).
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993: INCOME FUND VALUE EQUITY FUND
- -------------------------------------------------- -------------------------- --------------------------
INVESTMENT SHARES: SHARES DOLLARS SHARES DOLLARS
- -------------------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 7,706,464 $ 82,234,741 1,373,437 $ 17,096,412
- --------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 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 electing to receive
payments of dividends in fund shares 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>
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL MARYLAND MUNICIPAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994:* BOND FUND BOND FUND
- ------------------------------------------------------ ------------------------ ------------------------
INVESTMENT SHARES: SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------ --------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold 2,225,799 $24,789,448 655,556 $7,188,192
- ------------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 165,141 1,823,490 82,200 903,254
- ------------------------------------------------------
Shares redeemed (575,230) (6,359,678) (213,227) (2,346,604)
- ------------------------------------------------------ --------- ----------- --------- -----------
1,815,710 20,253,260 524,529 5,744,842
--------- ----------- --------- -----------
TRUST SHARES:
- ------------------------------------------------------
Shares sold 466,357 $5,186,291 182,541 $2,005,796
- ------------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 45 507 -- --
- ------------------------------------------------------
Shares redeemed (634,794) (6,981,971) (151,976) (1,674,545)
- ------------------------------------------------------ --------- ----------- --------- -----------
(168,392) (1,795,173) 30,565 331,251
--------- ----------- --------- -----------
Net change resulting from fund share transactions 1,647,318 $18,458,087 555,094 $6,076,093
- ------------------------------------------------------ --------- ----------- --------- -----------
* Six months ended March 31, 1994 (unaudited).
</TABLE>
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL MARYLAND MUNICIPAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993: BOND FUND BOND FUND
- ------------------------------------------------------ ------------------------ ------------------------
INVESTMENT SHARES: SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------ --------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold 4,242,902 $45,236,230 1,775,657 $19,059,313
- ------------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 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 17,804,611
--------- ----------- --------- -----------
TRUST SHARES:
- ------------------------------------------------------
Shares sold 2,213,254 $22,844,274 551,722 $5,981,004
- ------------------------------------------------------
Shares issued to shareholders electing to receive
payments of dividends in fund shares 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 $23,127,607
- ------------------------------------------------------ --------- ----------- --------- -----------
</TABLE>
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY MONEY MARKET
FUND MONEY MARKET FUND
----------------------------- -----------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1994* 1993 1994* 1993
------------ ------------ ------------ ------------
INVESTMENT SHARES: SHARES SHARES SHARES SHARES
- ----------------------------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares sold 10,632,351 39,935,444 10,754,874 27,269,514
- -----------------------------------------
Shares issued to shareholders electing to
receive payments of dividends in fund
shares 245,180 395,861 122,308 239,475
- -----------------------------------------
Shares redeemed (10,613,681) (32,908,788) (11,010,838) (23,406,781)
- ----------------------------------------- ------------ ------------ ------------ ------------
263,850 7,422,517 (133,656) 4,102,208
------------ ------------ ------------ ------------
TRUST SHARES:
- -----------------------------------------
Shares sold 291,213,029 330,249,896 128,155,539 298,420,298
- -----------------------------------------
Shares issued to shareholders electing to
receive payments of dividends in fund
shares 33 233 -- 12
- -----------------------------------------
Shares redeemed (180,432,062) (340,781,049) (132,225,208) (300,639,349)
- ----------------------------------------- ------------ ------------ ------------ ------------
110,781,000 (10,530,920) (4,069,669) (2,219,039)
------------ ------------ ------------ ------------
Net change resulting from fund share
transactions 111,044,850 (3,108,403) (4,203,325) 1,883,169
- ----------------------------------------- ------------ ------------ ------------ ------------
* Six months ended March 31, 1994 (unaudited).
</TABLE>
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Signet Asset Management, the Trust's investment adviser ("Adviser"), receives
for its services an annual investment advisory fee based upon a percentage of
the Funds' average daily net assets (see below). The Adviser may voluntarily
choose to waive a portion of its fee. The Adviser can terminate these voluntary
waivers of expenses at any time at its sole discretion.
<TABLE>
<CAPTION>
FUND RATE*
------------------------------------------------------------------- -----
<S> <C>
U.S. Government Income Fund 0.75%
-------------------------------------------------------------------
Value Equity 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%
-------------------------------------------------------------------
</TABLE>
* As a percentage of average daily net assets.
Federated Administrative Services ("FAS") provides the Trust certain
administrative personnel and services. The 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.
Signet Trust Company is the the Trust's custodian.
SIGNET SELECT FUNDS
- --------------------------------------------------------------------------------
Expenses of organizing the Funds were borne initially by FAS. The Funds have
agreed to pay FAS, at an annual rate of 0.005 of 1% of average daily net assets,
until the organization expenses initially borne by FAS are reimbursed or five
years from October 12, 1990, (date the Trust's registration statement first
became effective), whichever occurs earlier. The expenses of organizing each
Fund and the amounts reimbursed by each Fund during the period ended March 31,
1994 are as follows:
<TABLE>
<CAPTION>
INITIAL ORGANIZATION
ORGANIZATION EXPENSES
FUND EXPENSES REIMBURSED
---------------------------------------------- ------------ ------------
<S> <C> <C>
U.S. Government Income Fund $ 53,346 $5,938
----------------------------------------------
Value Equity Fund 59,298 2,116
----------------------------------------------
Virginia Municipal Bond Fund 55,256 2,850
----------------------------------------------
Maryland Municipal Bond Fund 58,484 1,166
----------------------------------------------
Treasury Money Market Fund 49,243 4,446
----------------------------------------------
Money Market Fund 50,235 3,588
----------------------------------------------
</TABLE>
The Funds have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Funds will reimburse Federated
Securities Corp. ("FSC"), the Funds' principal distributor, from the assets of
the Investment Shares of the Funds, for the fees it paid which relate to the
distribution and administration of the Funds' Investment 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 U.S. Government Income
Fund, the Value Equity 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 and the Money Market Fund,
annually, to pay commissions, maintenance fees and to compensate the
distributor.
Federated Services Company is the transfer agent and dividend disbursing agent
for the Funds. It also provides certain accounting and recordkeeping services
with respect to the Funds' portfolio of investments.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments excluding short-term securities, for the six
months ended March 31, 1994, were as follows:
<TABLE>
<CAPTION>
U.S. VIRGINIA MARYLAND
GOVERNMENT VALUE MUNICIPAL MUNICIPAL
INCOME EQUITY BOND BOND
FUND FUND FUND FUND
- ---------------------------------------------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
PURCHASES-- $341,763,044 $25,598,414 $34,133,753 $12,555,429
- ---------------------------------------------- ----------- ----------- ----------- -----------
SALES-- $402,592,566 $24,072,687 $15,452,834 $ 7,015,918
- ---------------------------------------------- ----------- ----------- ----------- -----------
</TABLE>
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
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 John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
Craig P. Churman
Vice President and Assistant
Treasurer
C. Grant Anderson
Assistant Secretary
Mutual funds are not obligations of or insured by any bank nor are they insured
by the federal government or any of its agencies. Investment in these shares
involves risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
0000000 (5/94)
