- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEWPOINT EQUITY FUND
SEMI-ANNUAL REPORT
MAY 31, 1996
A Diversified Portfolio of Newpoint
Funds
an Open-End, Management Investment
Company
LOGO
LOGO
Cusip 735686305
G01234-01 (7/96)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I'm pleased to present the semi-annual report to shareholders of Newpoint Equity
Fund for the six-month period ended May 31, 1996. The report begins with a brief
commentary on the stock market from the fund's portfolio manager. Following the
commentary are a complete listing of the fund's investments and its financial
statements.
On your behalf, Newpoint Equity Fund invests in a diversified portfolio of
high-quality stocks across the industrial spectrum. At the end of the report
period, the fund's extensive portfolio held stocks issued by some of America's
most prominent companies, including Kimberly-Clark, Caterpillar, Intel,
Motorola, Chrysler, Nike, Boston Chicken, Procter & Gamble, Johnson & Johnson,
Pfizer, Exxon, Allstate, and many, many more.
As the stock market continued to perform well, Newpoint Equity Fund produced a
six-month total return of 10.59%, or 5.60% reflecting the sales charge*.
Contributing to the fund's total return was a 9% increase in share price,
dividends totaling $0.03 per share and capital gains totaling $0.16 per share.
At the end of the period, fund assets stood at $32 million.
Thank you for selecting Newpoint Equity Fund to help your money grow over time
through a diversified portfolio of quality stocks. We welcome your comments and
suggestions.
Sincerely,
LOGO
Edward C. Gonzales
President
July 15, 1996
* 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
- --------------------------------------------------------------------------------
The U.S. equity market has advanced approximately 9% (S&P 500)* through May.
Most industry groups participated with notably strong performance from
technology, retailing, insurance, drugs and health care, and beverages.
During the first of the year we felt that the bull market would continue well
into 1996, but that it would look different from the market of 1995, because the
year 1995 was the start of the new bull market driven by PE (Price/Earnings
Ratio) multiple expansion while 1996 should be driven by an extension of the
business cycle and therefore, earnings. Our 1996 expectations were that the
economy would rebound, the Federal Reserve ("the Fed") policy would be stable,
inflation would trough and the stock market would be rotational, but upward
sloping. The implications of these expectations are that the bond market yield
would rise, given subdued inflation during the 1st half, but not enough to send
the stock market into a major correction. Stocks with earnings surprises would
be the best performers, however, in this environment any change in the marker's
perception of the inflation outlook will terminate the bull market. With
inflation subdued, the bull market should continue, but there are two possible
developments to watch and think about in coming months that could drastically
alter our positive outlook; 1.) whether synchronized growth in most of the
developed countries during the 2nd half of 1996 may cause some commodity
inflation problems, and 2.) despite a less than robust growth in our domestic
economy, could we see some inflation problems develop from cost-push on the wage
side. We do not have to see a rise in inflation up to the 4-5% area to get the
bond market and the Fed nervous enough to act. Fears almost always turn out
worse than reality, but the market moves on fears. We feel there are still some
strong secular forces that will likely keep a lid on any major inflation
pressures, but the lid can let off steam from time to time. We might be getting
close to one of those times.
Our portfolio is currently overweighted in drug and health care, technology,
capital goods, and insurance stocks. We are underweighted in basic industries,
but favor gold stocks. We feel these groups will provide the best long term
rates of return for our fund.
LOGO
Wesley C. Meinerding
Vice President & Trust Officer
of First National Bank of Ohio
* Standard & Poor's Daily Stock Price Index of 500 Common Stocks is an unmanaged
index of common stocks in industry, transportation, financial and public
utility companies. Investments cannot be made in an index.
NEWPOINT EQUITY FUND
PORTFOLIO OF INVESTMENTS
MAY 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--99.3%
- -------------------------------------------------------------------------------------
BASIC INDUSTRIES--9.8%
--------------------------------------------------------------------
8,000 Eastman Chemical Co. $ 536,000
--------------------------------------------------------------------
6,750 Engelhard Corp. 165,375
--------------------------------------------------------------------
12,000 International Paper Co. 478,500
--------------------------------------------------------------------
4,000 Kimberly-Clark Corp. 291,500
--------------------------------------------------------------------
7,000 Monsanto Co. 1,063,125
--------------------------------------------------------------------
40,000 Santa Fe Pacific Gold Corp. 610,000
-------------------------------------------------------------------- -----------
Total 3,144,500
-------------------------------------------------------------------- -----------
CAPITAL GOODS--7.1%
--------------------------------------------------------------------
8,000 Briggs & Stratton Corp. 344,000
--------------------------------------------------------------------
3,900 Caterpillar, Inc. 255,938
--------------------------------------------------------------------
9,000 Deere & Co. 374,625
--------------------------------------------------------------------
6,000 Dover Corp. 285,000
--------------------------------------------------------------------
8,100 General Electric Co. 670,275
--------------------------------------------------------------------
7,000 * Ionics, Inc. 346,500
-------------------------------------------------------------------- -----------
Total 2,276,338
-------------------------------------------------------------------- -----------
CAPITAL GOODS TECHNOLOGY--22.4%
--------------------------------------------------------------------
3,500 Boeing Co. 298,375
--------------------------------------------------------------------
12,000 * Cisco Systems, Inc. 657,000
--------------------------------------------------------------------
6,000 Computer Associates International, Inc. 436,500
--------------------------------------------------------------------
6,000 Diebold, Inc. 228,750
--------------------------------------------------------------------
4,000 Eastman Kodak Co. 297,500
--------------------------------------------------------------------
15,000 General Motors Corp., Class E 845,625
--------------------------------------------------------------------
9,000 Hewlett-Packard Co. 960,750
--------------------------------------------------------------------
9,000 Intel Corp. 679,500
--------------------------------------------------------------------
10,000 * Intuit, Inc. 520,000
--------------------------------------------------------------------
</TABLE>
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -------------------------------------------------------------------------------------
CAPITAL GOODS TECHNOLOGY--CONTINUED
--------------------------------------------------------------------
10,000 Micron Technology, Inc. $ 322,500
--------------------------------------------------------------------
8,000 Motorola, Inc. 534,000
--------------------------------------------------------------------
5,400 Raytheon Co. 287,550
--------------------------------------------------------------------
6,000 Rockwell International Corp. 350,250
--------------------------------------------------------------------
7,000 * Silicon Graphics, Inc. 192,500
--------------------------------------------------------------------
5,000 United Technologies Corp. 546,875
-------------------------------------------------------------------- -----------
Total 7,157,675
-------------------------------------------------------------------- -----------
CONSUMER CYCLICAL--5.3%
--------------------------------------------------------------------
10,000 Chrysler Corp. 666,250
--------------------------------------------------------------------
10,000 * Kohl's Corp. 331,250
--------------------------------------------------------------------
7,000 Nike, Inc., Class B 702,625
-------------------------------------------------------------------- -----------
Total 1,700,125
-------------------------------------------------------------------- -----------
CONSUMER GROWTH--3.3%
--------------------------------------------------------------------
16,000 * Boston Chicken, Inc. 522,000
--------------------------------------------------------------------
8,000 * Officemax Inc. 209,000
--------------------------------------------------------------------
10,000 PepsiCo, Inc. 332,500
-------------------------------------------------------------------- -----------
Total 1,063,500
-------------------------------------------------------------------- -----------
CONSUMER STAPLES--7.8%
--------------------------------------------------------------------
12,500 Procter & Gamble Co. 1,098,437
--------------------------------------------------------------------
20,000 * Safeway, Inc. 675,000
--------------------------------------------------------------------
14,500 Sara Lee Corp. 483,937
--------------------------------------------------------------------
7,000 Seagram Co. Ltd. 242,375
-------------------------------------------------------------------- -----------
Total 2,499,749
-------------------------------------------------------------------- -----------
CREDIT CYCLICAL--0.7%
--------------------------------------------------------------------
4,000 Armstrong World Industries, Inc. 235,500
-------------------------------------------------------------------- -----------
</TABLE>
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -------------------------------------------------------------------------------------
DRUGS & HEALTHCARE--18.1%
--------------------------------------------------------------------
10,000 * Amgen, Inc. $ 595,000
--------------------------------------------------------------------
10,000 * Boston Scientific Corp. 428,750
--------------------------------------------------------------------
20,000 Caremark International, Inc. 547,500
--------------------------------------------------------------------
3,500 Columbia/HCA Healthcare Corp. 188,563
--------------------------------------------------------------------
4,000 Johnson & Johnson 389,500
--------------------------------------------------------------------
10,000 Lilly (Eli) & Co. 642,500
--------------------------------------------------------------------
9,000 Medtronic, Inc. 506,250
--------------------------------------------------------------------
4,000 Pfizer, Inc. 283,000
--------------------------------------------------------------------
19,500 * Thermo Cardiosystems, Inc. 994,500
--------------------------------------------------------------------
22,000 Warner-Lambert Co. 1,232,000
-------------------------------------------------------------------- -----------
Total 5,807,563
-------------------------------------------------------------------- -----------
ENERGY--11.8%
--------------------------------------------------------------------
16,000 Baker Hughes, Inc. 502,000
--------------------------------------------------------------------
3,400 Exxon Corp. 288,150
--------------------------------------------------------------------
10,000 Halliburton Co. 556,250
--------------------------------------------------------------------
11,000 Horsham Corp. 163,625
--------------------------------------------------------------------
10,000 Mobil Corp. 1,128,750
--------------------------------------------------------------------
2,000 Royal Dutch Petroleum Co., ADR 300,000
--------------------------------------------------------------------
10,000 Schlumberger Ltd. 833,750
-------------------------------------------------------------------- -----------
Total 3,772,525
-------------------------------------------------------------------- -----------
FINANCE--INSURANCE & OTHER--7.2%
--------------------------------------------------------------------
10,000 Allstate Corp. 422,500
--------------------------------------------------------------------
4,500 American International Group, Inc. 424,125
--------------------------------------------------------------------
25,000 Progressive Corp. Ohio 1,156,250
--------------------------------------------------------------------
40,000 Reliance Group Holdings, Inc. 310,000
-------------------------------------------------------------------- -----------
Total 2,312,875
-------------------------------------------------------------------- -----------
</TABLE>
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -------------------------------------------------------------------------------------
TRANSPORTATION--1.2%
------------------------------------------------------------------
8,000 CSX Corp. $ 396,000
------------------------------------------------------------------ -----------
UTILITIES--4.6%
------------------------------------------------------------------
3,000 American Electric Power Co., Inc. 120,375
------------------------------------------------------------------
17,000 Cincinnati Bell, Inc. 903,125
------------------------------------------------------------------
4,000 Consolidated Natural Gas Co. 193,500
------------------------------------------------------------------
5,000 Williams Cos., Inc. (The) 251,250
------------------------------------------------------------------ -----------
Total 1,468,250
------------------------------------------------------------------ -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $25,923,584) 31,834,600
------------------------------------------------------------------ -----------
**REPURCHASE AGREEMENT--0.4%
- -------------------------------------------------------------------------------------
$139,000 NatCity Investments, Inc., 5.25%, dated 5/31/1996, due 6/3/1996
(AT AMORTIZED COST) 139,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $26,062,584) $31,973,600+
------------------------------------------------------------------ -----------
</TABLE>
* Non-income producing security.
** The repurchase agreement is fully collateralized by U.S. Treasury obligations
based on market prices at the date of the portfolio.
+ The cost of investments for federal tax purposes amounts to $26,062,584. The
net unrealized appreciation of investments on a federal tax basis amounts to
$5,911,016, which is comprised of $6,240,381 appreciation and $329,365
depreciation at May 31, 1996.
Note: The categories of investments are shown as a percentage of net assets
($32,052,229) at May 31, 1996.
The following acronym is used throughout this portfolio:
ADR -- American Depositary Receipt
(See Notes which are an integral part of the Financial Statements)
NEWPOINT EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Total investments in securities, at value
(identified and tax cost $26,062,584) $31,973,600
- -------------------------------------------------------------------------------
Income receivable 67,785
- -------------------------------------------------------------------------------
Receivable for shares sold 98,600
- ------------------------------------------------------------------------------- -----------
Total assets 32,139,985
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Income distribution payable $11,245
- ---------------------------------------------------------------------
Payable to Bank 32,663
- ---------------------------------------------------------------------
Accrued expenses 43,848
- --------------------------------------------------------------------- -------
Total liabilities 87,756
- ------------------------------------------------------------------------------- -----------
Net Assets for 2,317,080 shares outstanding $32,052,229
- ------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in capital $24,562,864
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments 5,911,016
- -------------------------------------------------------------------------------
Accumulated net realized gain on investments 1,564,399
- -------------------------------------------------------------------------------
Undistributed net investment income 13,950
- ------------------------------------------------------------------------------- -----------
Total Net Assets $32,052,229
- ------------------------------------------------------------------------------- -----------
NET ASSET VALUE, and Redemption Proceeds Per Share:
- -------------------------------------------------------------------------------
($32,052,229 / 2,317,080 shares outstanding) $13.83
- ------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/95.50 of $13.83)* $14.48
- ------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
NEWPOINT EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Dividends $ 219,112
- ---------------------------------------------------------------------------------
Interest 32,125
- --------------------------------------------------------------------------------- ----------
Total income 251,237
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $105,085
- ----------------------------------------------------------------------
Administrative personnel and services fee 50,046
- ----------------------------------------------------------------------
Custodian fees 12,087
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 14,983
- ----------------------------------------------------------------------
Directors'/Trustees' fees 1,340
- ----------------------------------------------------------------------
Auditing fees 6,791
- ----------------------------------------------------------------------
Legal fees 2,817
- ----------------------------------------------------------------------
Portfolio accounting fees 27,034
- ----------------------------------------------------------------------
Share registration costs 7,858
- ----------------------------------------------------------------------
Printing and postage 4,317
- ----------------------------------------------------------------------
Insurance premiums 968
- ----------------------------------------------------------------------
Miscellaneous 2,862
- ---------------------------------------------------------------------- --------
Total expenses 236,188
- ----------------------------------------------------------------------
Waiver of investment advisory fee (63,334)
- ---------------------------------------------------------------------- --------
Net expenses 172,854
- --------------------------------------------------------------------------------- ----------
Net investment income 78,383
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 1,574,541
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 1,150,401
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 2,724,942
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $2,803,325
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
NEWPOINT EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MAY 31, 1996 PERIOD ENDED
(UNAUDITED) NOVEMBER 30, 1995
---------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------
OPERATIONS--
- ----------------------------------------------------
Net investment income $ 78,383 $ 178,891
- ----------------------------------------------------
Net realized gain (loss) on investments ($1,574,541
and $305,031, respectively, as computed for
federal tax purposes) 1,574,541 305,031
- ----------------------------------------------------
Net change in unrealized appreciation (depreciation) 1,150,401 5,022,005
- ---------------------------------------------------- ------------ ------------
Change in net assets resulting from operations 2,803,325 5,505,927
- ---------------------------------------------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ----------------------------------------------------
Distributions from net investment income (69,834) (179,687)
- ----------------------------------------------------
Distributions from net realized gains (315,173) --
- ---------------------------------------------------- ------------ ------------
Change in net assets resulting from
distributions to shareholders (385,007) (179,687)
- ---------------------------------------------------- ------------ ------------
SHARE TRANSACTIONS--
- ----------------------------------------------------
Proceeds from sale of shares 4,518,726 9,177,923
- ----------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 623 --
- ----------------------------------------------------
Cost of shares redeemed (687,998) (316,027)
- ---------------------------------------------------- ------------ ------------
Change in net assets resulting from share
transactions 3,831,351 8,861,896
- ---------------------------------------------------- ------------ ------------
Change in net assets 6,249,669 14,188,136
- ----------------------------------------------------
NET ASSETS:
- ----------------------------------------------------
Beginning of period 25,802,560 11,614,424
- ---------------------------------------------------- ------------ ------------
End of period (including undistributed net
investment income of $13,950 and $5,401,
respectively) $ 32,052,229 $ 25,802,560
- ---------------------------------------------------- ------------ ------------
</TABLE>
NEWPOINT EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED NOVEMBER
ENDED 30,
MAY 31, 1996 -------------------
(UNAUDITED) 1995 1994(A)
------------ ------ --------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.69 $ 9.78 $10.00
- --------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------------
Net investment income 0.03 0.10 0.05
- --------------------------------------------------------
Net realized and unrealized gain (loss) on investments 1.30 2.91 (0.23)
- -------------------------------------------------------- ------ ------ ------
Total from investment operations 1.33 3.01 (0.18)
- --------------------------------------------------------
LESS DISTRIBUTIONS
- --------------------------------------------------------
Distributions from net investment income (0.03) (0.10) (0.04)
- --------------------------------------------------------
Distributions from net realized gain on investments (0.16) -- --
- -------------------------------------------------------- ------ ------ ------
Total distributions (0.19) (0.10) (0.04)
- -------------------------------------------------------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $13.83 $12.69 $ 9.78
- -------------------------------------------------------- ------ ------ ------
TOTAL RETURN (B) 10.59% 30.97% 1.76%
- --------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------------
Expenses 1.23%* 1.48% 1.00%*
- --------------------------------------------------------
Net investment income 0.56%* 0.88% 2.36%*
- --------------------------------------------------------
Expense waiver/reimbursement (c) 0.45%* 0.52% 1.72%*
- --------------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------------
Net assets, end of period (000 omitted) $32,052 $25,803 $11,614
- --------------------------------------------------------
Average commission rate paid $0.0675 $ -- $ --
- --------------------------------------------------------
Portfolio turnover 37% 35% 0%
- --------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from September 13, 1994 (date of initial
public investment) to November 30, 1994.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
NEWPOINT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Newpoint Funds (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "Act") as an open-end, management investment company. The
Trust consists of two portfolios, Newpoint Equity Fund and Newpoint Government
Money Market Fund. The financial statements included herein are only those of
Newpoint Equity Fund (the "Fund"), a diversified portfolio. The investment
objective of the Fund is to achieve growth of capital and income. The financial
statements of the other portfolio is presented separately. The assets of each
portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale
price reported on a national securities exchange. Short-term securities are
valued at the prices provided by an independent pricing service. However,
short-term securities with remaining maturities of sixty days or less at
the time of purchase may be valued at amortized cost, which approximates
fair market value.
REPURCHASE AGREEMENTS--It is the policy of the Fund 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 under repurchase
agreement transactions. Additionally, procedures have been established by
the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Fund could
receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend
date.
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains 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.
USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MAY 31, 1996 PERIOD ENDED
(UNAUDITED) NOVEMBER 30, 1995
- -------------------------------------------------------- ------------ ------------------
<S> <C> <C>
Shares sold 334,645 872,874
- --------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 45 --
- --------------------------------------------------------
Shares redeemed (51,478) (27,157)
- -------------------------------------------------------- ------- -------
Net change resulting from share transactions 283,212 845,717
- -------------------------------------------------------- ------- -------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--First National Bank of Ohio, the Fund's investment
adviser, (the "Adviser"), receives for its services an annual investment
advisory fee equal to 0.75% of the Fund's average daily net assets.
The Adviser may voluntarily choose to waive any portion of its fee. The Adviser
can modify or terminate this voluntary waiver at any time at its sole
discretion.
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The fee paid to FAS is based
on the level of average aggregate net assets of the Trust for the period.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES--Federated Services Company
("FServ") through its subsidiary, Federated Shareholder Services Company
("FSSC"), serves as transfer and dividend disbursing agent for the Fund. The fee
paid to FSSC is based on the size, type, and number of accounts and transactions
made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Trust's accounting records for
which it receives a fee. The fee is based on the level of the Trust's average
daily net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $15,526 were borne initially
by FAS. The Fund has agreed to reimburse FAS for the organizational expenses
during the five year period following effective date. For the period ended May
31, 1996, the Fund paid $1,611 pursuant to this agreement.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities , for the
period ended May 31, 1996, were as follows:
<TABLE>
<S> <C>
- -----------------------------------------------------------------
PURCHASES $18,023,635
- ----------------------------------------------------------------- -----------
SALES $ 9,887,071
- ----------------------------------------------------------------- -----------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TRUSTEES OFFICERS
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
William J. Copeland President and Treasurer
J. Christopher Donahue J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. Richard B. Fisher
Edward L. Flaherty, Jr. Vice President
Edward C. Gonzales John W. McGonigle
Peter E. Madden Executive Vice President and
Gregor F. Meyer Secretary
John E. Murray, Jr. Christine Thomson
Wesley W. Posvar Vice President and Assistant
Marjorie P. Smuts Treasurer
C. Todd Gibson
Assistant Secretary
The shares offered by Newpoint Equity Fund are not deposits or obligations of
First National Bank of Ohio, or any bank, are not endorsed or guaranteed by
First National Bank of Ohio, or any bank, and are not obligations of, guaranteed
by, or insured by the U.S. government, the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other government agency.
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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEWPOINT GOVERNMENT
MONEY MARKET FUND
SEMI-ANNUAL REPORT
MAY 31, 1996
A Diversified Portfolio of Newpoint
Funds
an Open-End, Management Investment
Company
LOGO
LOGO
Cusip 735686107
G00580-03 (7/96)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the semi-annual report to shareholders of Newpoint
Government Money Market Fund for the six-month period ended May 31, 1996. This
report includes an investment review by the portfolio manager, a list of the
fund's investments, and complete financial information.
During the period, the fund's portfolio of U.S. government money market
securities provided investors with dividends of $0.02 per share while
maintaining a stable share value of $1.00.* The fund's net assets stood at $78.1
million on the last day of the period.
Thank you for putting your ready cash to work through the daily earning power of
Newpoint Government Money Market Fund. We'll continue to keep you up to date on
your investment, and provide your account with the highest level of service.
Sincerely,
LOGO
Edward C. Gonzales
President
July 15, 1996
* Although money market funds seek to maintain a share value of $1.00, there is
no guarantee that they will do so. An investment in the fund is neither
insured nor guaranteed by the U.S. government.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
During the beginning of 1996, the U.S. economy looked like it was slowing. As
more data became available throughout the following months, the economy showed
surprising strength. Money market rates moved in tandem with the expectation of
Federal Reserve Bank's ("the Fed") moves. Rates dipped in January as the
consensus deemed that the Fed would lower rates, then rebounded sharply as the
strength in the economy quelled those expectations. As it stands now, short term
money market rates are approximately where they were at the beginning of the
year.
To take advantage of what we believe is a temporary rise in money market rates,
the Fund lengthened its average maturity days to lock in attractive rates. The
Fund also reduced the percent of the assets which were held in overnight
maturity positions from approximately 50 percent to around 30 percent, for the
reason mentioned above. The majority of the portfolio is laddered in U.S.
government agency discount notes which yield a higher return than their U.S.
Treasury counterparts. In this way the Fund seeks to maximize the return to
shareholders while providing regular opportunities for investment. As always, we
continue to monitor the interest rate environment closely and stand prepared to
invest the Newpoint Government Money Market Fund to optimize yield within the
high quality standards of the Fund.
LOGO
Kathleen E. Wells
Trust Officer & Portfolio Manager
First National Bank of Ohio
NEWPOINT GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
MAY 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------------- ------------
<C> <C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--63.5%
- -----------------------------------------------------------------------------------------
FEDERAL FARM CREDIT BANK DISCOUNT NOTES--6.3%
----------------------------------------------------------------------
$ 5,000,000 (a) 5.19%, 8/2/1996 $ 4,955,308
---------------------------------------------------------------------- -----------
FEDERAL HOME LOAN BANK DISCOUNT NOTES--6.4%
----------------------------------------------------------------------
5,000,000 (a) 5.07%, 7/8/1996 4,973,946
---------------------------------------------------------------------- -----------
FEDERAL HOME LOAN BANK BONDS--6.4%
----------------------------------------------------------------------
5,000,000 5.05%, 2/21/1997 5,000,000
---------------------------------------------------------------------- -----------
FEDERAL HOME LOAN MORTGAGE CORP. DISCOUNT NOTES--21.6%
----------------------------------------------------------------------
17,000,000 (a) 5.19%-5.21%, 6/20/1996-8/16/1996 16,895,615
---------------------------------------------------------------------- -----------
FEDERAL NATIONAL MORTGAGE ASSOC. DISCOUNT NOTES--22.8%
----------------------------------------------------------------------
18,000,000 (a) 4.75%-5.29%, 7/12/1996-10/11/1996 17,801,369
---------------------------------------------------------------------- -----------
TOTAL U.S. GOVERNMENT AGENCIES 49,626,238
---------------------------------------------------------------------- -----------
U.S. TREASURY--16.2%
- -----------------------------------------------------------------------------------------
U.S. TREASURY BILLS--16.2%
----------------------------------------------------------------------
13,000,000 9/5/1996-3/6/1997 12,637,006
---------------------------------------------------------------------- -----------
TOTAL U.S. TREASURY BILLS 12,637,006
---------------------------------------------------------------------- -----------
(B) REPURCHASE AGREEMENTS--20.7%
- -----------------------------------------------------------------------------------------
6,146,000 NatCity Investments, Inc., 5.25%, dated 5/31/1996, due 6/3/1996 6,146,000
----------------------------------------------------------------------
10,000,000 Smith Barney, Inc., 5.25%, dated 5/31/1996, due 6/3/1996 10,000,000
---------------------------------------------------------------------- -----------
TOTAL REPURCHASE AGREEMENTS 16,146,000
---------------------------------------------------------------------- -----------
TOTAL INVESTMENTS AT AMORTIZED COST(C) $78,409,244
---------------------------------------------------------------------- -----------
</TABLE>
(a) Discount rate at time of purchase.
(b) The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(c) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($78,136,670) at May 31, 1996.
(See Notes which are an integral part of the Financial Statements)
NEWPOINT GOVERNMENT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Investments in repurchase agreements $16,146,000
- -------------------------------------------------------------------
Investments in securities 62,263,244
- ------------------------------------------------------------------- -----------
Total investments, at amortized cost and value $78,409,244
- ---------------------------------------------------------------------------------
Income receivable 72,534
- --------------------------------------------------------------------------------- -----------
Total assets 78,481,778
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Income distribution payable 319,034
- -------------------------------------------------------------------
Accrued expenses 26,074
- ------------------------------------------------------------------- -----------
Total liabilities 345,108
- --------------------------------------------------------------------------------- -----------
Net Assets for 78,136,670 shares outstanding $78,136,670
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- ---------------------------------------------------------------------------------
($78,136,670 / 78,136,670 shares outstanding) $1.00
- --------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
NEWPOINT GOVERNMENT MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $2,456,652
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $227,123
- ----------------------------------------------------------------------
Administrative personnel and services fee 68,137
- ----------------------------------------------------------------------
Custodian fees 14,126
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 21,379
- ----------------------------------------------------------------------
Directors'/Trustees' fees 2,949
- ----------------------------------------------------------------------
Auditing fees 8,734
- ----------------------------------------------------------------------
Legal fees 2,820
- ----------------------------------------------------------------------
Portfolio accounting fees 19,880
- ----------------------------------------------------------------------
Share registration costs 9,662
- ----------------------------------------------------------------------
Printing and postage 5,520
- ----------------------------------------------------------------------
Insurance premiums 820
- ----------------------------------------------------------------------
Miscellaneous 1,641
- ---------------------------------------------------------------------- --------
Total expenses 382,791
- ----------------------------------------------------------------------
Waiver of investment advisory fee (90,849)
- ---------------------------------------------------------------------- --------
Net expenses 291,942
- --------------------------------------------------------------------------------- ----------
Net investment income $2,164,710
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
NEWPOINT GOVERNMENT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1996 NOVEMBER 30,
(UNAUDITED) 1995
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 2,164,710 $ 3,521,619
- --------------------------------------------------------- --------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------
Distributions from net investment income (2,164,710) (3,521,619)
- --------------------------------------------------------- --------------- ------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------
Proceeds from sale of shares 89,776,058 214,437,253
- ---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 402,134 640,172
- ---------------------------------------------------------
Cost of shares redeemed (111,715,228) (179,271,936)
- --------------------------------------------------------- --------------- ------------
Change in net assets resulting from share
transactions (21,537,036) 35,805,489
- --------------------------------------------------------- --------------- ------------
Change in net assets (21,537,036) 35,805,489
- ---------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------
Beginning of period 99,673,706 63,868,217
- --------------------------------------------------------- --------------- ------------
End of period $ 78,136,670 $ 99,673,706
- --------------------------------------------------------- --------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
NEWPOINT GOVERNMENT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED NOVEMBER 30,
MAY 31, 1996 -----------------------------------------------------
(UNAUDITED) 1995 1994(D) 1993 1992 1991(A)
------------ ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net investment income 0.02 0.05 0.03 0.02 0.03 0.04
- ---------------------------------
LESS DISTRIBUTIONS
- ---------------------------------
Distributions from net
investment income (0.02) (0.05) (0.03) (0.02) (0.03) (0.04)
- --------------------------------- ------ ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------- ------ ----- ----- ----- ----- -----
TOTAL RETURN (B) 2.41% 5.24% 3.25% 2.47% 3.23% 3.87%
- ---------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------
Expenses 0.64%* 0.74% 0.77% 0.74% 0.73% 0.57%*
- ---------------------------------
Net investment income 4.77%* 5.12% 3.24% 2.44% 3.21% 5.26%*
- ---------------------------------
Expense waiver/ reimbursement
(c) 0.20%* 0.20% 0.20% 0.20% 0.20% 0.26%*
- ---------------------------------
SUPPLEMENTAL DATA
- ---------------------------------
Net assets, end of period (000
omitted) $78,137 $99,674 $63,868 $48,897 $54,111 $64,140
- ---------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from March 11, 1991 (date of initial
public investment) to November 30, 1991. For the period from the start of
business, December 20, 1990, to March 10, 1991, net investment income
aggregating $0.0136 per share ($1,346) was distributed to Federated
Administrative Services.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) As of February 4, 1994, Investment Shares were no longer offered and ceased
to exist. Prior to that date, the Fund had offered two classes of shares
known as Trust Shares and Investment Shares.
(See Notes which are an integral part of the Financial Statements)
NEWPOINT GOVERNMENT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Newpoint Funds (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "Act") as an open-end, management investment company. The
Trust consists of two portfolios, Newpoint Equity Fund and Newpoint Government
Money Market Fund. The financial statements included herein are only those of
Newpoint Government Money Market Fund (the "Fund"), a diversified portfolio. The
investment objective of the Fund is to provide stability of principal and
current income consistent with stability of principal. The financial statements
of the other portfolio is presented separately. The assets of each portfolio are
segregated and a shareholder's interest is limited to the portfolio in which
shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--The Fund uses the amortized cost method to value its
portfolio securities in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS--It is the policy of the Fund 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 under repurchase
agreement transactions. Additionally, procedures have been established by
the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Fund could
receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains 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.
USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At May
31, 1996, capital paid-in aggregated $78,136,670.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MAY 31, 1996 YEAR ENDED
(UNAUDITED) NOVEMBER 30, 1995
- --------------------------------------------------------- ------------ -----------------
<S> <C> <C>
Shares sold 89,776,058 214,437,253
- ---------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 402,134 640,172
- ---------------------------------------------------------
Shares redeemed (111,715,228) (179,271,936)
- --------------------------------------------------------- ------------ -------------
Net change resulting from share transactions (21,537,036) 35,805,489
- --------------------------------------------------------- ------------ -------------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--First National Bank of Ohio, the Fund's investment
adviser, (the "Adviser"), receives for its services an annual investment
advisory fee equal to 0.50% of the Fund's average daily net assets.
The Adviser may voluntarily choose to waive any portion of its fee. The Adviser
can modify or terminate this voluntary waiver at any time at its sole
discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The fee is based on the
level of average aggregate net assets of the Trust for the period.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES--Federated Services Company
("FServ"), through its subsidiary, Federated Shareholder Services Company
("FSSC"), serves as transfer and dividend disbursing agent for the Fund. The fee
paid to FSSC is based on the size, type, and number of accounts and transactions
made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Trust's accounting records for
which it receives a fee. The fee is based on the level of the Trust's average
daily net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $114,169 were borne
initially by FAS. The Fund has agreed to reimburse FAS for the organizational
expenses during the five year period following effective date. For the period
ended May 31, 1996, the Fund paid $412 completing its obligation under this
agreement.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TRUSTEES OFFICERS
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
William J. Copeland President and Treasurer
J. Christopher Donahue J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. Richard B. Fisher
Edward L. Flaherty, Jr. Vice President
Edward C. Gonzales John W. McGonigle
Peter E. Madden Executive Vice President and
Gregor F. Meyer Secretary
John E. Murray, Jr. Christine Thomson
Wesley W. Posvar Vice President and Assistant
Marjorie P. Smuts Treasurer
C. Todd Gibson
Assistant Secretary
Mutual funds are not bank deposits or obligations of First National Bank of
Ohio, are not endorsed or guaranteed by First National Bank of Ohio, or any
bank, and are not obligations of, guaranteed by, or insured by the U.S.
government, the Federal Deposit Insurance Corporation, the Federal Reserve
Board, or any other government agency. Investment in mutual funds involves
investment risk, including possible loss of principal. Although money market
funds seek to maintain a stable net asset value of $1.00 per share, there is no
assurance that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus, which contains facts
concerning its objective and policies, management fees, expenses and other
information.
