- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEWPOINT GOVERNMENT
MONEY MARKET FUND
SEMI-ANNUAL REPORT
MAY 31, 1997
A Diversified Portfolio of Newpoint
Funds,
an Open-End, Management Investment
Company
LOGO
LOGO
Cusip 651722100
G00580-03 (7/97)
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 reporting period from December 1,
1996 through May 31, 1997. This report includes an investment review by the
portfolio manager, a list of the fund's investments, and complete financial
information.
During the reporting period, the fund's portfolio of U.S. government money
market securities paid dividends totaling $0.02 per share while maintaining a
stable share value of $1.00.* The fund's total net assets grew to reach $92.5
million on the last day of the reporting period.
Thank you for putting your ready cash to work on a daily basis through Newpoint
Government Money Market Fund. We will 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, 1997
* 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. An investment in
the fund is not insured or guaranteed by the U.S. government.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The Newpoint Government Money Market Fund had an average maturity of over 70
days at the beginning of 1997. The Federal Reserve Board (the "Fed") hinted that
a raise in money market rates was likely, and in March, the move came to
fruition, with the increase of the federal funds rate from 5.25 percent to 5.50
percent. It seemed overwhelmingly likely that the process would be repeated
before the end of the second quarter. The fund's average maturity drifted
downward to around 40 days by the end of May in anticipation of capturing higher
rates once another round of tightening was made by the Fed.
As inflation continues to be a no-show, the chance that the Fed will raise rates
looks less and less likely. As the current assets mature in the fund, they will
be reinvested in the most attractive part of the money market curve, mainly in
U.S. government agency paper, to pick up the extra yield that these securities
provide. The pockets of value currently look to be in the six-month portion of
the yield curve.
We plan to continue to ladder notes in an attempt to maximize yield to
shareholders, while providing regular opportunities for reinvestment. As always,
we continue to monitor the interest rate environment closely and stand prepared
to invest the Newpoint Government Money Market Fund to help 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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------------- ------------
<C> <C> <S> <C>
U.S. GOVERNMENT AGENCIES--71.8%
- -----------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK DISCOUNT NOTES--32.1%
----------------------------------------------------------------------
$ 30,000,000 (a) 5.23%-5.603%, 6/25/1997-10/1/1997 $ 29,739,440
---------------------------------------------------------------------- -----------
FEDERAL HOME LOAN MORTGAGE CORP. DISCOUNT NOTES--10.8%
----------------------------------------------------------------------
10,000,000 (a) 5.66%, 7/1/1997 9,954,083
---------------------------------------------------------------------- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT NOTES--28.9%
----------------------------------------------------------------------
27,000,000 (a) 5.41%-5.59%, 6/6/1997-9/24/1997 26,763,827
---------------------------------------------------------------------- -----------
TOTAL U.S. GOVERNMENT AGENCIES 66,457,350
---------------------------------------------------------------------- -----------
(B) REPURCHASE AGREEMENTS--28.6%
- -----------------------------------------------------------------------------------------
10,000,000 HSBC Securities, Inc., 5.470%, dated 5/30/1997, due 6/2/1997 10,000,000
----------------------------------------------------------------------
16,460,000 National City Bank, Cleveland, OH, 5.480%, dated 5/30/1997, due
6/2/1997 16,460,000
---------------------------------------------------------------------- -----------
TOTAL REPURCHASE AGREEMENTS 26,460,000
---------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (AT AMORTIZED COST)(C) $ 92,917,350
---------------------------------------------------------------------- -----------
</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
($92,538,643) at May 31, 1997.
(See Notes which are an integral part of the Financial Statements)
NEWPOINT GOVERNMENT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Investments in repurchase agreements $26,460,000
- -------------------------------------------------------------------
Investments in securities 66,457,350
- ------------------------------------------------------------------- -----------
Total investments in securities, at amortized cost $92,917,350
- ---------------------------------------------------------------------------------
Cash 1,500
- ---------------------------------------------------------------------------------
Income receivable 8,050
- --------------------------------------------------------------------------------- -----------
Total assets 92,926,900
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Income distribution payable 376,730
- -------------------------------------------------------------------
Accrued expenses 11,527
- ------------------------------------------------------------------- -----------
Total liabilities 388,257
- --------------------------------------------------------------------------------- -----------
Net Assets for 92,538,643 shares outstanding $92,538,643
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- ---------------------------------------------------------------------------------
$92,538,643 / 92,538,643 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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $2,328,387
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $217,408
- ----------------------------------------------------------------------
Administrative personnel and services fee 65,222
- ----------------------------------------------------------------------
Custodian fees 12,904
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 21,013
- ----------------------------------------------------------------------
Directors'/Trustees' fees 3,416
- ----------------------------------------------------------------------
Auditing fees 8,393
- ----------------------------------------------------------------------
Legal fees 1,496
- ----------------------------------------------------------------------
Portfolio accounting fees 18,821
- ----------------------------------------------------------------------
Share registration costs 6,426
- ----------------------------------------------------------------------
Printing and postage 4,130
- ----------------------------------------------------------------------
Insurance premiums 1,946
- ----------------------------------------------------------------------
Miscellaneous 1,039
- ---------------------------------------------------------------------- --------
Total expenses 362,214
- ----------------------------------------------------------------------
Waiver of investment advisory fee (86,963)
- ---------------------------------------------------------------------- --------
Net expenses 275,251
- --------------------------------------------------------------------------------- ----------
Net investment income $2,053,136
- --------------------------------------------------------------------------------- ----------
</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
(UNAUDITED) NOVEMBER 30,
MAY 31, 1997 1996
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 2,053,136 $ 4,117,984
- --------------------------------------------------------- ---------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------
Distributions from net investment income (2,053,136) (4,117,984)
- --------------------------------------------------------- ---------------- ------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------
Proceeds from sale of shares 97,902,141 195,120,125
- ---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 617,556 1,098,483
- ---------------------------------------------------------
Cost of shares redeemed (91,211,129) (210,662,239)
- --------------------------------------------------------- ---------------- ------------
Change in net assets resulting from share
transactions 7,308,568 (14,443,631)
- --------------------------------------------------------- ---------------- ------------
Change in net assets 7,308,568 (14,443,631)
- ---------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------
Beginning of period 85,230,075 99,673,706
- --------------------------------------------------------- ---------------- ------------
End of period $ 92,538,643 $ 85,230,075
- --------------------------------------------------------- ---------------- ------------
</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,
(UNAUDITED) ------------------------------------------------------
MAY 31, 1997 1996 1995 1994(B) 1993 1992 1991(A)
------------ ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------
Net investment income 0.02 0.05 0.05 0.03 0.02 0.03 0.04
- ---------------------------------------
LESS DISTRIBUTIONS
- ---------------------------------------
Distributions from net investment
income (0.02) (0.05) (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 $1.00
- --------------------------------------- -------- ----- ----- ------ ----- ----- ------
TOTAL RETURN (C) 2.38% 4.83% 5.24% 3.25% 2.47% 3.23% 3.87%
- ---------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------
Expenses 0.63%* 0.63% 0.74% 0.77% 0.74% 0.73% 0.57%*
- ---------------------------------------
Net investment income 4.72%* 4.73% 5.12% 3.24% 2.44% 3.21% 5.26%*
- ---------------------------------------
Expense waiver/reimbursement (d) 0.20%* 0.20% 0.20% 0.20% 0.20% 0.20% 0.26%*
- ---------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------
Net assets, end of period (000
omitted) $92,539 $85,230 $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) 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. The table above presents Trust
Share information for the years prior to November 30, 1994. For the years
ended November 30, 1993, 1992, and for the period ended November 30, 1991,
Investment Share net assets (000 omitted) were $10,315, $14,114, and $7,933,
respectively.
(c) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(d) 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 GOVERNMENT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1997 (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. The financial statements included herein are
only those of Newpoint Government Money Market Fund (the "Fund"). The financial
statements of the other portfolio are presented separately. The assets of each
portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held. The investment objective of the Fund is to
provide stability of principal and current income consistent with stability of
principal.
(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's use of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
REPURCHASE AND REVERSE REPURCHASE AGREEMENTS--It is the policy of the Fund
to require the custodian bank or broker 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 and reverse 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 and reverse 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 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 these agreements.
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.
NEWPOINT GOVERNMENT MONEY MARKET 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) for each
class of shares. At May 31, 1997, capital paid-in aggregated $92,538,643.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
MAY 31, 1997 NOVEMBER 30, 1996
- --------------------------------------------------------- ------------ -----------------
<S> <C> <C>
Shares sold 97,902,141 195,120,125
- ---------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 617,556 1,098,483
- ---------------------------------------------------------
Shares redeemed (91,211,129) (210,662,239)
- --------------------------------------------------------- ----------- ---------------
Net change resulting from share transactions 7,308,568 (14,443,631)
- --------------------------------------------------------- ----------- ---------------
</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.
NEWPOINT GOVERNMENT MONEY MARKET 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 AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--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 Fund's accounting records for
which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
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. C. 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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEWPOINT EQUITY FUND
SEMI-ANNUAL REPORT
MAY 31, 1997
A Diversified Portfolio of Newpoint
Funds,
an Open-End, Management Investment
Company
LOGO
LOGO
Cusip 651722209
G01234-01 (7/97)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Newpoint
Equity Fund for the six-month reporting period from December 1, 1996 through May
31, 1997. 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.
Newpoint Equity Fund invests in a diversified portfolio of high-quality stocks
across the industrial spectrum. As you review the fund's list of holdings, you
will recognize many of America's most prominent companies.
As the U.S. stock market continued to advance during the reporting period,
Newpoint Equity Fund produced a six-month total return of 8.41%, or 3.55%
reflecting the sales charge.* Contributing to the fund's total return was a 3.6%
increase in share price, dividends totaling $0.02 per share and capital gains
totaling $0.64 per share. At the end of the reporting period, total net assets
of the fund stood at $44.6 million.
Thank you for selecting Newpoint Equity Fund as a way to capture the long-term
growth opportunities of U.S. stocks. We will continue to keep you up-to-date on
your progress.
Sincerely,
LOGO
Edward C. Gonzales
President
July 15, 1997
* Performance quoted represents past performance and is not indicative of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The U.S. equity market has advanced approximately 15.00% (S&P 500)* through May.
The market has been helped by strong performances from consumer staples, capital
goods-technology, and financial stocks. The market has been hurt by weak
performances from credit cyclical, consumer services, basic industries,
transportation, and utilities. Large-capitalization stocks have been performing
better than small-capitalization stocks. The performance of large-capitalization
stocks are tied to the level and direction of interest rates since they have
stable cash flows to discount to the present. Small-capitalization stocks tend
to perform better when the U.S. economy is growing strongly and particularly
out-perform when Japan and Germany's economies are also contributing to a world
wide expansion.+ A strong global economy benefits the earnings driven
small-capitalization stocks. Interest rates this cycle have been very well
behaved because productivity increases have outdistanced wage increases. The
Newpoint Equity Fund is mostly invested in large-capitalization stocks so
productivity and interest rate trends are important to the fund. The real debate
in the market is centered around just how long productivity increases continue
to exceed demand (spending) increases. At the point where the public becomes
convinced of eternal prosperity and eternally-rising stock prices, spending will
begin to outdistance supply growth (productivity growth) and stocks will have a
hard time making further positive progress. As long as analysts constantly
express concern that the stock market is too high and we have an absence of a
spending boom, we look for the market environment to be positive for our
large-capitalization stocks. With this positive outlook, we plan to continue to
overweight the technology, capital goods, drug and health care, agricultural,
and financial sectors.
Our overweighted industries are beneficiaries of one or more of the following
themes: demographic trends are negative in the U.S. while the developing world
has very positive demographics; technology is increasing productivity because it
is replacing physical assets with information; agriculture is becoming a growth
industry; companies continue to restructure; and good values can be found in
out-of-favor stocks. Under the demographic theme, we expect globally exposed
companies to out-perform domestically exposed companies, particularly those
companies that can benefit from worldwide industrial growth and global brands.
Examples would be Proctor & Gamble, Boeing, and Gillette. Under the technology
theme, we feel that the high-technology tier should out-perform the low-
technology tier of stocks, especially in computers and communication. Under this
theme, we like Intel, Microsoft, Cisco, Compaq, and Sun Microsystems.
Bioagriculture is the driving force in our agricultural theme. Monsanto and
Deere are both benefiting from this theme. Restructuring a company's finances
and marketing can enhance shareholder returns by focusing a company's
strategies. Raytheon, United Technologies, and Safeway have enhanced shareholder
value by restructuring. Many stocks fall out of favor as a result of value
migration from a company's historical business model to a new one. With new
management or some other catalyst, the business model is updated to the new
realities of the market with value restored to the shareholder. Stanley Works
has new management who is changing the direction of the company.
* 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.
+ Small cap stocks have historically experienced greater volatility than
average.
We feel the fund's present structure should provide the best chances of capital
appreciation for the coming year.
LOGO
Wesley C. Meinerding
Vice President & Trust Officer
First National Bank of Ohio
NEWPOINT EQUITY FUND
PORTFOLIO OF INVESTMENTS
MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--98.9%
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--3.5%
----------------------------------------------------------------
35,000 Monsanto Co. $ 1,540,000
---------------------------------------------------------------- ------------
BUILDING CYCLICAL--0.9%
----------------------------------------------------------------
10,000 Stanley Works 410,000
---------------------------------------------------------------- ------------
CAPITAL GOODS--5.1%
----------------------------------------------------------------
14,000 Deere & Co. 715,750
----------------------------------------------------------------
26,200 General Electric Co. 1,581,825
---------------------------------------------------------------- ------------
Total 2,297,575
---------------------------------------------------------------- ------------
CAPITAL GOODS TECHNOLOGY--23.3%
----------------------------------------------------------------
6,752 Boeing Co. 710,648
----------------------------------------------------------------
13,000 (a) Cisco Systems, Inc. 880,750
----------------------------------------------------------------
4,000 (a) Compaq Computer Corp. 433,000
----------------------------------------------------------------
15,000 Computer Associates International, Inc. 821,250
----------------------------------------------------------------
15,000 Diebold, Inc. 562,500
----------------------------------------------------------------
4,000 Eastman Kodak Co. 331,500
----------------------------------------------------------------
5,000 Hewlett-Packard Co. 257,500
----------------------------------------------------------------
11,000 Intel Corp. 1,666,500
----------------------------------------------------------------
7,000 (a) Microsoft Corp. 868,000
----------------------------------------------------------------
9,400 Raytheon Co. 448,850
----------------------------------------------------------------
12,000 Rockwell International Corp. 774,000
----------------------------------------------------------------
30,000 (a) Sun Microsystems, Inc. 967,500
----------------------------------------------------------------
10,000 Telefonaktiebolaget LM Ericsson, Class B 356,250
----------------------------------------------------------------
10,000 United Technologies Corp. 803,750
----------------------------------------------------------------
25,000 (a) Westell Technologies, Inc., Class A 506,250
---------------------------------------------------------------- ------------
Total 10,388,248
---------------------------------------------------------------- ------------
</TABLE>
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER CYCLICAL--3.4%
----------------------------------------------------------------
40,000 (a) CompUSA, Inc. $ 930,000
----------------------------------------------------------------
10,000 Nike, Inc., Class B 570,000
---------------------------------------------------------------- ------------
Total 1,500,000
---------------------------------------------------------------- ------------
CONSUMER SERVICES--2.3%
----------------------------------------------------------------
16,000 (a) Boston Chicken, Inc. 288,000
----------------------------------------------------------------
3,000 Disney (Walt) Co. 245,625
----------------------------------------------------------------
10,000 McDonald's Corp. 502,500
---------------------------------------------------------------- ------------
Total 1,036,125
---------------------------------------------------------------- ------------
CONSUMER STAPLES--12.4%
----------------------------------------------------------------
8,000 Gillette Co. 711,000
----------------------------------------------------------------
20,000 Kimberly-Clark Corp. 1,002,500
----------------------------------------------------------------
20,000 PepsiCo, Inc. 735,000
----------------------------------------------------------------
12,500 Procter & Gamble Co. 1,723,437
----------------------------------------------------------------
20,000 (a) Safeway, Inc. 900,000
----------------------------------------------------------------
12,000 Seagram Co. Ltd. 483,000
---------------------------------------------------------------- ------------
Total 5,554,937
---------------------------------------------------------------- ------------
DRUGS & HEALTHCARE--16.8%
----------------------------------------------------------------
11,000 (a) Boston Scientific Corp. 587,125
----------------------------------------------------------------
8,000 Johnson & Johnson 479,000
----------------------------------------------------------------
11,000 Lilly (Eli) & Co. 1,023,000
----------------------------------------------------------------
25,410 (a) MedPartners, Inc. 482,790
----------------------------------------------------------------
11,000 Medtronic, Inc. 814,000
----------------------------------------------------------------
10,000 Pfizer, Inc. 1,028,750
----------------------------------------------------------------
31,500 (a) Thermo Cardiosystems, Inc. 846,563
----------------------------------------------------------------
22,000 Warner-Lambert Co. 2,216,500
---------------------------------------------------------------- ------------
Total 7,477,728
---------------------------------------------------------------- ------------
</TABLE>
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
ENERGY--13.2%
----------------------------------------------------------------
16,000 Baker Hughes, Inc. $ 600,000
----------------------------------------------------------------
16,800 Exxon Corp. 995,400
----------------------------------------------------------------
10,000 Halliburton Co. 773,750
----------------------------------------------------------------
8,000 Royal Dutch Petroleum Co., ADR 1,562,000
----------------------------------------------------------------
10,000 Schlumberger Ltd. 1,191,250
----------------------------------------------------------------
10,000 Unocal Corp. 426,250
----------------------------------------------------------------
7,500 Williams Cos., Inc. (The) 330,938
---------------------------------------------------------------- ------------
Total 5,879,588
---------------------------------------------------------------- ------------
FINANCE--INSURANCE, BANKING & OTHER--14.2%
----------------------------------------------------------------
10,000 Allstate Corp. 736,250
----------------------------------------------------------------
10,000 American Express Co. 695,000
----------------------------------------------------------------
7,500 American International Group, Inc. 1,015,312
----------------------------------------------------------------
30,000 Capstone Capital Trust, Inc. 682,500
----------------------------------------------------------------
5,000 Chase Manhattan Corp. 472,500
----------------------------------------------------------------
20,000 National Golf Properties, Inc. 650,000
----------------------------------------------------------------
15,000 NationsBank Corp. 883,125
----------------------------------------------------------------
15,000 Progressive Corp. Ohio 1,186,875
---------------------------------------------------------------- ------------
Total 6,321,562
---------------------------------------------------------------- ------------
TRANSPORTATION--1.0%
----------------------------------------------------------------
8,000 CSX Corp. 424,000
---------------------------------------------------------------- ------------
UTILITIES--2.8%
----------------------------------------------------------------
17,000 Cincinnati Bell, Inc. 1,045,500
----------------------------------------------------------------
4,000 Consolidated Natural Gas Co. 212,500
---------------------------------------------------------------- ------------
Total 1,258,000
---------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST $32,509,085) 44,087,763
---------------------------------------------------------------- ------------
</TABLE>
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(B)REPURCHASE AGREEMENTS--0.8%
- ------------------------------------------------------------------------------------
$ 340,000 National City Bank, Cleveland, OH, 6.50%, dated 5/30/1997, due
6/2/1997 (AT AMORTIZED COST) $ 340,000
----------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $32,849,085)(C) $44,427,763
----------------------------------------------------------------- -----------
</TABLE>
(a) Non-income producing security.
(b) The repurchase agreement is fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(c) The cost of investments for federal tax purposes amounts to $32,849,085. The
net unrealized appreciation of investments on a federal tax basis amounts to
$11,578,678 which is comprised of $12,301,066 appreciation and $722,388
depreciation at May 31, 1997.
Note: The categories of investments are shown as a percentage of net assets
($44,592,928) at May 31,1997.
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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $32,849,085) $44,427,763
- -------------------------------------------------------------------------------
Cash 142,484
- -------------------------------------------------------------------------------
Income receivable 79,340
- ------------------------------------------------------------------------------- -----------
Total assets 44,649,587
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Income distribution payable $ 7,863
- ---------------------------------------------------------------------
Accrued expenses 48,796
- --------------------------------------------------------------------- -------
Total liabilities 56,659
- ------------------------------------------------------------------------------- -----------
Net Assets for 2,841,580 shares outstanding $44,592,928
- ------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in capital $31,760,927
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments 11,578,678
- -------------------------------------------------------------------------------
Accumulated net realized gain on investments 1,227,646
- -------------------------------------------------------------------------------
Undistributed net investment income 25,677
- ------------------------------------------------------------------------------- -----------
Total Net Assets $44,592,928
- ------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------------------------------------------------
Net Asset Value Per Share ($44,592,928 / 2,841,580 shares
outstanding) $15.69
- ------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/95.50 of $15.69)* $16.43
- ------------------------------------------------------------------------------- -----------
</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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Dividends $ 296,927
- ---------------------------------------------------------------------------------
Interest 39,482
- --------------------------------------------------------------------------------- ----------
Total income 336,409
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $163,897
- ----------------------------------------------------------------------
Administrative personnel and services fee 49,863
- ----------------------------------------------------------------------
Custodian fees 10,739
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 15,094
- ----------------------------------------------------------------------
Directors'/Trustees' fees 3,298
- ----------------------------------------------------------------------
Auditing fees 7,238
- ----------------------------------------------------------------------
Legal fees 1,357
- ----------------------------------------------------------------------
Portfolio accounting fees 24,025
- ----------------------------------------------------------------------
Share registration costs 6,186
- ----------------------------------------------------------------------
Printing and postage 4,258
- ----------------------------------------------------------------------
Insurance premiums 1,768
- ----------------------------------------------------------------------
Miscellaneous 2,337
- ---------------------------------------------------------------------- --------
Total expenses 290,060
- ----------------------------------------------------------------------
Waivers--
- ----------------------------------------------------------------------
Waiver of investment advisory fee (32,780)
- ---------------------------------------------------------------------- --------
Net expenses 257,280
- --------------------------------------------------------------------------------- ----------
Net investment income 79,129
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 1,227,753
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 2,296,999
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 3,524,752
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $3,603,881
- --------------------------------------------------------------------------------- ----------
</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
(UNAUDITED) YEAR ENDED
MAY 31, 1997 NOVEMBER 30, 1996
---------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------
OPERATIONS--
- ----------------------------------------------------
Net investment income $ 79,129 $ 162,389
- ----------------------------------------------------
Net realized gain on investments ($1,227,753 and
$1,800,706 net gains, respectively, as computed for
federal tax purposes) 1,227,753 1,810,858
- ----------------------------------------------------
Net change in unrealized appreciation 2,296,999 4,521,064
- ---------------------------------------------------- -------------- ---------------
Change in net assets resulting from operations 3,603,881 6,494,311
- ---------------------------------------------------- -------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ----------------------------------------------------
Distributions from net investment income (58,878) (162,364)
- ----------------------------------------------------
Distributions from net realized gains (1,800,823) (315,173)
- ---------------------------------------------------- -------------- ---------------
Change in net assets resulting from
distributions to shareholders (1,859,701) (477,537)
- ---------------------------------------------------- -------------- ---------------
SHARE TRANSACTIONS--
- ----------------------------------------------------
Proceeds from sale of shares 3,192,229 13,364,107
- ----------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 1,802,513 3,433
- ----------------------------------------------------
Cost of shares redeemed (5,003,813) (2,329,055)
- ---------------------------------------------------- -------------- ---------------
Change in net assets resulting from share
transactions (9,071) 11,038,485
- ---------------------------------------------------- -------------- ---------------
Change in net assets 1,735,109 17,055,259
- ----------------------------------------------------
NET ASSETS:
- ----------------------------------------------------
Beginning of period 42,857,819 25,802,560
- ---------------------------------------------------- -------------- ---------------
End of period (including undistributed net
investment income of $25,677 and $5,426,
respectively) $ 44,592,928 $ 42,857,819
- ---------------------------------------------------- -------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
NEWPOINT EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED NOVEMBER 30,
MAY 31, --------------------------------
1997 1996 1995 1994(A)
------------ ------ ------ --------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.14 $12.69 $ 9.78 $10.00
- --------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------
Net investment income 0.03 0.07 0.10 0.05
- --------------------------------------------------
Net realized and unrealized gain (loss) on
investments 1.18 2.61 2.91 (0.23)
- -------------------------------------------------- --------- ------ ------ -------
Total from investment operations 1.21 2.68 3.01 (0.18)
- -------------------------------------------------- --------- ------ ------ -------
LESS DISTRIBUTIONS
- --------------------------------------------------
Distributions from net investment income (0.02) (0.07) (0.10) (0.04)
- --------------------------------------------------
Distributions from net realized gain on
investments (0.64) (0.16) -- --
- -------------------------------------------------- --------- ------ ------ -------
Total distributions (0.66) (0.23) (0.10) (0.04)
- -------------------------------------------------- --------- ------ ------ -------
NET ASSET VALUE, END OF PERIOD $15.69 $15.14 $12.69 $ 9.78
- -------------------------------------------------- --------- ------ ------ -------
TOTAL RETURN (B) 8.41% 21.38% 30.97% (1.76%)
- --------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------
Expenses 1.18%* 1.13% 1.48% 1.00%*
- --------------------------------------------------
Net investment income 0.36%* 0.51% 0.88% 2.36%*
- --------------------------------------------------
Expense waiver/reimbursement (c) 0.15%* 0.37% 0.52% 1.72%*
- --------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------
Net assets, end of period (000 omitted) $44,593 $42,858 $25,803 $11,614
- --------------------------------------------------
Average commission rate paid $0.0579 $0.0625 $ -- $ --
- --------------------------------------------------
Portfolio turnover 29% 49% 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. For the period from August 30, 1994
(start of business) to September 12, 1994, the Fund had no investment
activity.
(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, 1997 (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. The financial statements included herein are
only those of Newpoint Equity Fund (the "Fund"), a diversified portfolio. The
financial statements of the other portfolio are presented separately. The assets
of each portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held. The investment objective of the Fund is to
achieve growth of capital and income.
(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--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 YEAR ENDED
MAY 31, 1997 NOVEMBER 30, 1996
- ------------------------------------------------------- -------------- ------------------
<S> <C> <C>
Shares sold 217,530 965,226
- -------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 125,427 246
- -------------------------------------------------------
Shares redeemed (333,046) (167,671)
- ------------------------------------------------------- ------------ --------------
Net change resulting from share transactions 9,911 797,801
- ------------------------------------------------------- ------------ --------------
</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.
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. The
administrative fee received during any fiscal year shall be at least $100,000
for the Fund.
NEWPOINT EQUITY FUND
- --------------------------------------------------------------------------------
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--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 Fund's accounting records for
which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $35,000 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, 1997, the Fund has not made any payments 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, 1997, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
PURCHASES $14,066,830
- ------------------------------------------------------------------------------- -----------
SALES $12,323,868
- ------------------------------------------------------------------------------- -----------
</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. C. Christine Thomson
Wesley W. Posvar Vice President and Assistant
Marjorie P. Smuts Treasurer
C. Todd Gibson
Assistant Secretary
The shares offered by the 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.
