<PAGE>
Message From The Chairman and The Investment Advisor Brenton Mutual Funds
- -------------------------------------------------------------------------------
Dear Shareholders:
The stock and bond markets continued their spectacular rally through the
typically slow days of summer, although confidence has waned somewhat going
into October. The fears of 1994 are a distant memory in investors' minds and
cash flows into equity mutual funds continue at a brisk pace. The consensus
opinion on the economy continues to be one of slow growth and low inflation,
with market participants searching for leadership. As we have noted in the
past, economic statistics continue to be erratic, and the market may be giving
too much credence to individual numbers, thereby creating a high degree of
volatility.
Many factors will play key roles in the direction of our markets going
forward. A credible balanced budget program is at the top of this list. The
United States needs to show investors, both domestic and foreign, that it can
operate within its means. The level of economic growth will also determine the
markets' direction, as the Fed determines whether it has stifled growth
through its tightening of monetary policy. Despite these uncertainties, the
domestic stock markets have continued their bull run, and interest rates have
steadily declined. As the economic variables substantiate themselves over the
next several months, we will continue to seek favorable opportunities to
invest the assets you have entrusted with us.
INTERMEDIATE U.S. GOVERNMENT FUND AND INTERMEDIATE TAX-FREE FUND
The Federal Reserve has adopted a "wait-and-see" position following its most
recent move, which was a 25 basis-point decrease in the Fed Funds rate in July
of 1995. In the interim, longer-term rates--from the one-year Treasury note to
the 30-year Treasury bond--have decreased by 150 to 200 basis-points. The
market appears to be prompting the Fed to lower interest rates at its next
meeting. Growth appears to have slowed enough for the Fed to lower rates, and
with the elections around the corner, the Fed may shift its concentration
somewhat from controlling inflation to providing consistent growth. Despite
continual criticism, the Fed has maintained its objectivity and held inflation
in check over the last several years. Many of our trading partners have also
witnessed low inflation, which leads us to believe that inflation should
become a secondary objective to steady growth. We have moved the duration of
the Intermediate U.S. Government Fund out somewhat in response to our
assumption that interest rates will ease. However, the overall portfolio
remains neutral based on our longer-term assumption that we will remain in a
trading range as inflation continues to be subdued.
Credit quality continues to be high in both Funds, with all securities in the
Intermediate U.S. Government Fund rated AAA, and the average credit quality in
the Intermediate Tax-Free Fund rate AA.
SHARES OF THE FUNDS ARE NOT FDIC INSURED, NOR ARE THEY INSURED BY ANY
GOVERNMENT AGENCY. FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, BRENTON BANK OR ITS AFFILIATES. AN INVESTMENT IN
THE FUNDS INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED.
THE BRENTON MUTUAL FUNDS ARE A FAMILY OF MUTUAL FUNDS DISTRIBUTED BY BISYS
FUND SERVICES WHICH IS INDEPENDENT OF BRENTON BANK AND IT AFFILIATES. BRENTON
BROKERAGE IS A REGISTERED BROKER-DEALER FROM WHOM SHARES OF THE BRENTON MUTUAL
FUNDS MAY BE PURCHASED.
- -------------------------------------------------------------------------------
-1-
<PAGE>
Message From The Chairman and The Investment Advisor Brenton Mutual Funds
- -------------------------------------------------------------------------------
Current spreads for lower-quality issues do not compensate investors for their
higher credit risk.
VALUE EQUITY FUND
The stock market continued its impressive bull run through the third quarter
of 1995. Technology continued to lead the market through July, although prices
have faltered recently. Health-care and drug stocks have been strong
performers as fears of drastic policy changes have subsided. Despite this
outperformance, margins in the industry remain vulnerable to increased pricing
pressures. This leads us to the recent barrage of earnings reports.
Expectations for earnings this year have been extremely high, due to low
borrowing costs and increased productivity. Earnings disappointments, despite
these high objections, have not been out of line with prior years. Companies
that meet Wall Street estimates have not seen large increases in the price of
their shares. Stock prices of companies that miss their estimates have been
beaten down. Earnings will continue to be a major determinant of individual
stock performance.
We positioned the Fund somewhat more defensively as the market continued its
advance. First, we have maintained a neutral market weighting in technology
stocks by investing in "soft" technology issues. We feel that the distributors
and suppliers of technology products will continue to benefit from strong
demand, while maintaining margins. Also, we have maintained an overweighting
in the financial sector, which should benefit from declining interest rates
and a strong year for fee income. Value remains a priority in our equity
selections, and we expect this emphasis to provide downside protection in a
nervous market.
U.S. GOVERNMENT MONEY MARKET FUND/1/
Money market fund rates have stabilized as the Fed has remained neutral for
most of 1995. We have maintained a relatively short average maturity and high
credit quality in the U.S. Government Money Market Fund. We have invested only
in direct obligations of the U.S. Government or its agencies, and will
continue to use this practice in the future.
We extend our thanks to you for making the Brenton Funds part of your
investment portfolio. We look forward to building our relationship together
with you in the future. If you have any questions, would like a prospectus, or
require any assistance, please contact your investment representative or call
1-800-706-FUND.
Sincerely,
Douglas P. Muenzenmay
Trust Investment Officer/Portfolio Manager
Brenton Bank
/s/ Roy E. Rogers
Roy E. Rogers
Chairman
Brenton Mutual Funds
FOR MORE COMPLETE INFORMATION ON ANY OF THE BRENTON MUTUAL FUNDS, INCLUDING
FEES, EXPENSES AND SALES CHARGES, PLEASE CALL 1-800-706-FUND FOR A FREE
PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING OR SENDING
MONEY.
THE INVESTMENT RETURN AND NET ASSET VALUE (NAV) WILL FLUCTUATE SO THAT AN
INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. THE COMPOSITION OF THE FUNDS' HOLDINGS IS SUBJECT TO CHANGE.
/1/AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT. YIELDS WILL FLUCTUATE, AND THERE CAN BE NO ASSURANCE THAT THE FUND
WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE (NAV) OF $1 PER SHARE.
- -------------------------------------------------------------------------------
-2-
<PAGE>
TABLE OF CONTENTS
Statements of Assets and Liabilities
Page 4
Statements of Operations
Page 5
Statements of Changes in Net Assets
Page 6
Schedules of Portfolio Investments
Page 8
Notes to Financial Statements
Page 15
Financial Highlights
Page 20
-3-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
U.S. INTERMEDIATE
GOVERNMENT U.S.
MONEY GOVERNMENT INTERMEDIATE VALUE
MARKET SECURITIES TAX-FREE EQUITY
FUND FUND FUND FUND
----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value.... $31,038,403 $31,791,384 $7,189,590 $22,462,028
Interest and dividends
receivable.............. 4,282 517,685 98,542 43,466
Receivable from brokers
for investments sold.... 198,993
Unamortized organization
costs................... 7,434 1,424 472 1,428
Prepaid expenses and
other assets............ 5,298 2,868 5,308 5,303
----------- ----------- ---------- -----------
Total Assets......... 31,055,418 32,313,361 7,492,905 22,512,225
----------- ----------- ---------- -----------
LIABILITIES:
Dividends payable........ 122,935 148,169 23,152 50,506
Investment securities
purchased............... 201,500
Accrued expenses and
other payables:
Investment advisory
fees.................. 3,735 11,926 13,436
Administration fees.... 1,671 1,749 392 1,221
12b-1 fees............. 1,245 1,305 908
Custodian, accounting
and transfer agent
fees................ 4,540 1,729 2,145 1,412
Legal and audit fees... 8,981 5,093 2,870 5,153
Other.................. 4,525 2,721 2,319 1,920
----------- ----------- ---------- -----------
Total Liabilities.... 147,632 172,692 232,378 74,556
----------- ----------- ---------- -----------
NET ASSETS:
Capital.................. 30,907,678 31,683,798 7,130,540 18,919,461
Undistributed net
investment income....... 25,952 4,121 250
Net unrealized
appreciation from
investments............. 506,330 124,752 2,351,303
Accumulated undistributed
net realized gains
(losses) from investment
transactions............ 108 (75,391) 1,114 1,166,655
----------- ----------- ---------- -----------
Net Assets........... $30,907,786 $32,140,689 $7,260,527 $22,437,669
=========== =========== ========== ===========
Outstanding units of
beneficial interest
(shares)................. 30,907,678 3,130,314 713,455 1,818,559
=========== =========== ========== ===========
Net asset value--
redemption price per
share................... $ 1.00 $ 10.27 $ 10.18 $ 12.34
=========== =========== ========== ===========
Maximum Sales Charge..... 3.50% 3.50% 4.00%
----------- ---------- -----------
Maximum Offering Price
(100%/(100%-
Maximum Sales Charge)
of net asset value
adjusted to nearest
cent) per share......... $ 1.00(a) $ 10.64 $ 10.55 $ 12.85
=========== =========== ========== ===========
Investments, at cost..... $31,038,403 $31,285,054 $7,064,838 $20,110,725
=========== =========== ========== ===========
</TABLE>
- ------
(a) Offering price and redemption price are the same for the U.S. Government
Money Market Fund.
See notes to financial statements.
-4-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE
U.S. U.S.
GOVERNMENT GOVERNMENT INTERMEDIATE
MONEY MARKET SECURITIES TAX-FREE VALUE EQUITY
FUND FUND FUND FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............ $976,587 $ 849,750 $166,151 $ 19,650
Dividend income............ 212,677
-------- ---------- -------- ----------
Total Income............. 976,587 849,750 166,151 232,327
-------- ---------- -------- ----------
EXPENSES:
Investment advisory fees... 65,682 59,614 13,449 71,219
Administration fees........ 32,872 23,845 6,726 19,248
Distribution and
shareholder services
fees...................... 41,051 29,807 8,405 24,061
Custodian and accounting
fees...................... 19,886 17,897 24,710 18,491
Legal and audit fees....... 14,535 8,145 4,140 8,739
Organization costs......... 4,392 801 252 846
Trustees' fees and
expenses.................. 801 366 114 435
Transfer agent fees........ 12,582 11,805 10,524 14,508
Registration and filing
fees...................... 2,127 1,488 1,098 1,785
Printing costs............. 4,164 2,286 822 2,607
Other...................... 1,098 549 183 365
Expenses voluntarily
reduced by investment
adviser, administrator
and/or distributor........ (79,241) (29,817) (20,520) (22,177)
-------- ---------- -------- ----------
Total expenses before
reimbursement by
investment adviser........ 119,949 126,786 49,903 140,127
Reimbursement of expenses
by investment adviser..... (5,179)
-------- ---------- -------- ----------
Total Expenses........... 119,949 126,786 44,724 140,127
-------- ---------- -------- ----------
Net Investment Income...... 856,638 722,964 121,427 92,200
-------- ---------- -------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses)
from investment
transactions.............. 50 (5,476) 7,000 1,019,901
Net change in unrealized
appreciation from
investments............... 427,771 118,232 1,393,996
-------- ---------- -------- ----------
Net realized/unrealized
gains from investments.... 50 422,295 125,232 2,413,897
-------- ---------- -------- ----------
Change in net assets
resulting from operations. $856,688 $1,145,259 $246,659 $2,506,097
======== ========== ======== ==========
</TABLE>
See notes to financial statements.
-5-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE
U.S. GOVERNMENT MONEY U.S. GOVERNMENT
MARKET FUND SECURITIES FUND
------------------------- ------------------------
SIX MONTHS AUGUEST 10, SIX MONTHS AUGUST 10,
ENDED 1994 TO ENDED 1994 TO
SEPTEMBER MARCH 31, SEPTEMBER MARCH 31,
30, 1995 1995 (A) 30, 1995 1995 (A)
----------- ------------ ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.... $ 856,638 $ 815,087 $ 722,964 $ 480,445
Net realized gains
(losses) from
investment transactions. 50 58 (5,476) (69,915)
Net change in unrealized
appreciation from
investments............. 427,771 78,559
----------- ------------ ----------- -----------
Change in net assets
resulting from
operations.............. 856,688 815,145 1,145,259 489,089
----------- ------------ ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income.................. (856,638) (815,087) (708,331) (469,126)
----------- ------------ ----------- -----------
Change in net assets from
shareholder
distributions............ (856,638) (815,087) (708,331) (469,126)
----------- ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued.................. 57,064,102 135,014,431 16,344,901 17,532,995
Dividends reinvested..... 18,961 2,433 127,911 57,238
Cost of shares redeemed.. (53,984,952) (107,207,297) (1,207,510) (1,171,737)
----------- ------------ ----------- -----------
Change in net assets from
share transactions..... 3,098,111 27,809,567 15,265,302 16,418,496
----------- ------------ ----------- -----------
Change in net assets..... 3,098,161 27,809,625 15,702,230 16,438,459
----------- ------------ ----------- -----------
NET ASSETS:
Beginning of period...... 27,809,625 16,438,459
----------- ------------ ----------- -----------
End of period............ $30,907,786 $ 27,809,625 $32,140,689 $16,438,459
=========== ============ =========== ===========
SHARE TRANSACTIONS:
Issued................... 57,064,102 135,014,431 1,590,387 1,758,263
Reinvested............... 18,961 2,433 12,580 5,830
Redeemed................. (53,984,952) (107,207,297) (118,700) (118,046)
----------- ------------ ----------- -----------
Change in shares.......... 3,098,111 27,809,567 1,484,267 1,646,047
=========== ============ =========== ===========
</TABLE>
- ------
(a) Period from commencement of operations.
See notes to financial statements.
-6-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE VALUE EQUITY
FUND FUND
------------------------ ------------------------
SIX MONTHS AUGUST 10, SIX MONTHS AUGUST 10,
ENDED 1994 TO ENDED 1994 TO
SEPTEMBER 30, MARCH 31, SEPTEMBER MARCH 31,
1995 1995 (A) 30, 1995 1995 (A)
------------- ---------- ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income..... $ 121,427 $ 79,887 $ 92,200 $ 108,278
Net realized gains
(losses) from investment
transactions............ 7,000 (5,886) 1,019,901 146,754
Net change in unrealized
appreciation from
investments............. 118,232 6,520 1,393,996 957,307
---------- ---------- ----------- -----------
Change in net assets
resulting from
operations.............. 246,659 80,521 2,506,097 1,212,339
---------- ---------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................... (119,642) (77,551) (89,643) (110,585)
---------- ---------- ----------- -----------
Change in net assets from
shareholder distributions. (119,642) (77,551) (89,643) (110,585)
---------- ---------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 1,163,247 7,403,398 5,490,923 15,156,029
Dividends reinvested...... 2,383 727 46,715 28,901
Cost of shares redeemed... (440,392) (998,823) (1,144,823) (658,284)
---------- ---------- ----------- -----------
Change in net assets from
share transactions...... 725,238 6,405,302 4,392,815 14,526,646
---------- ---------- ----------- -----------
Change in net assets...... 852,255 6,408,272 6,809,269 15,628,400
NET ASSETS:
Beginning of period....... 6,408,272 15,628,400
---------- ---------- ----------- -----------
End of period............. $7,260,527 $6,408,272 $22,437,669 $15,628,400
========== ========== =========== ===========
SHARE TRANSACTIONS:
Issued.................... 114,784 743,560 469,068 1,502,783
Reinvested................ 237 74 4,151 2,869
Redeemed.................. (43,539) (101,661) (97,061) (63,251)
---------- ---------- ----------- -----------
Change in shares........... 71,482 641,973 376,158 1,442,401
========== ========== =========== ===========
</TABLE>
- ------
(a) Period from commencement of operations.
See notes to financial statements.
-7-
<PAGE>
THE COVENTRY GROUP
BRENTON U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (94.8%):
Federal Farm Credit Bank:
2,000,000 5.60%, 11/3/95......................................... $ 1,989,733
130,000 5.73%, 11/30/95........................................ 128,758
Federal Home Loan Bank:
1,500,000 5.65%, 10/10/95........................................ 1,497,881
1,415,000 5.59%, 10/13/95........................................ 1,412,363
3,000,000 5.54%, 10/16/95........................................ 2,993,075
2,050,000 5.57%, 10/18/95........................................ 2,044,608
2,000,000 5.70%, 10/30/95........................................ 1,990,817
125,000 5.73%, 11/6/95......................................... 124,284
1,000,000 5.62%, 11/13/95........................................ 993,287
2,750,000 5.62%, 11/15/95........................................ 2,730,656
2,420,000 5.60%, 11/16/95........................................ 2,402,684
1,000,000 5.55%, 11/17/95........................................ 992,754
615,000 5.70%, 11/28/95........................................ 609,352
</TABLE>
- ------
Percentages indicated are based on net assets of $30,907,786.
(a) Cost for federal income tax purposes and financial reporting purposes are
the same.
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
5,000,000 5.57%, 12/12/95....................................... $ 4,944,300
2,500,000 5.53%, 12/27/95....................................... 2,466,590
1,000,000 5.54%, 12/29/95....................................... 986,304
1,000,000 5.57%, 1/12/96........................................ 984,064
-----------
Total U.S. Government Agencies 29,291,510
-----------
INVESTMENT COMPANIES (5.6%):
1,746,893 Dreyfus Treasury Prime Money Market Fund.............. 1,746,893
-----------
Total Investment Companies 1,746,893
-----------
Total (Cost--$31,038,403)(a) $31,038,403
===========
</TABLE>
See notes to financial statements.
-8-
<PAGE>
THE COVENTRY GROUP
BRENTON INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (6.4%):
Federal Home Loan Mortgage Corp.:
1,000,000 8.00%, 12/15/18....................................... $ 1,015,950
Federal National Mortgage Assoc.:
1,000,000 8.00%, 8/25/06........................................ 1,032,300
-----------
Total Collateralized Mortgage Obligations 2,048,250
-----------
U.S. GOVERNMENT AGENCIES (80.3%):
Federal Farm Credit Bank:
500,000 6.10%, 7/24/00........................................ 498,285
300,000 6.92%, 5/13/02........................................ 310,674
Federal Home Loan Bank:
3,000,000 6.11%, 5/17/96........................................ 3,008,370
500,000 7.32%, 2/24/98........................................ 515,140
1,000,000 7.02%, 7/6/99......................................... 1,031,040
500,000 7.00%, 6/20/01........................................ 519,535
1,000,000 7.44%, 8/10/01........................................ 1,057,240
1,000,000 8.50%, 2/8/02......................................... 1,067,580
2,000,000 6.50%, 6/5/02......................................... 2,020,940
1,000,000 7.36%, 7/1/04......................................... 1,058,700
1,000,000 9.02%, 1/19/05........................................ 1,005,290
500,000 6.85%, 5/26/05........................................ 512,070
3,000,000 6.32%, 6/28/05........................................ 2,969,010
Federal Home Loan Mortgage Corp.:
1,500,000 6.55%, 10/2/02........................................ 1,525,020
1,000,000 7.95%, 7/28/04........................................ 1,026,590
1,000,000 7.73%, 8/10/04........................................ 1,040,170
700,000 7.18%, 8/25/05........................................ 707,434
Federal National Mortgage Assoc.:
1,000,000 8.60%, 12/12/01....................................... 1,023,940
700,000 6.85%, 4/5/04......................................... 716,338
1,000,000 7.83%, 8/11/04........................................ 1,026,830
500,000 7.00%, 5/25/06........................................ 499,820
</TABLE>
- ------
Percentages indicated are based on net assets of $32,140,689.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............ $582,174
Unrealized depreciation............ (75,844)
--------
Net unrealized appreciation........ $506,330
========
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc.:
1,151,954 7.00%, 5/1/10.......................................... $ 1,149,512
Student Loan Marketing Assoc.:
500,000 8.30%, 12/9/99......................................... 507,925
500,000 7.67%, 3/8/00.......................................... 508,730
Tennessee Valley Authority:
500,000 7.63%, 9/15/99......................................... 506,250
-----------
Total U.S. Government Agencies 25,812,433
-----------
U.S. TREASURY NOTES (11.2%):
500,000 6.13%, 7/31/96......................................... 501,490
500,000 7.38%, 11/15/97........................................ 514,535
1,000,000 6.88%, 7/31/99......................................... 1,029,420
500,000 5.88%, 2/15/04......................................... 489,145
1,000,000 7.25%, 5/15/04......................................... 1,067,200
-----------
Total U.S. Treasury Notes 3,601,790
-----------
INVESTMENT COMPANIES (1.0%):
328,911 Goldman Federal Money Market Portfolio................. 328,911
-----------
Total Investment Companies 328,911
-----------
Total (Cost--$31,285,054)(a) $31,791,384
===========
</TABLE>
See notes to financial statements.
-9-
<PAGE>
THE COVENTRY GROUP
BRENTON INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS (95.6%):
Arizona (1.3%):
90,000 Scottsdale, Street & Highway User Revenue, 4.75%,
7/1/00................................................ $ 91,463
----------
California (5.6%):
200,000 California State, Series C, 5.75%, 4/25/96............. 202,050
100,000 Los Angeles, GO, Series A, 5.50%, 9/1/04............... 104,250
100,000 South Orange County, 5.10%, 8/15/01.................... 102,500
----------
408,800
----------
Colorado (1.4%):
100,000 Jefferson County, Public Library, 5.00% 12/1/03........ 101,250
----------
District of Columbia (1.4%):
100,000 District of Columbia, GO, Series C, 5.25%, 6/1/01...... 102,000
----------
Florida (2.8%):
200,000 Florida State Board of Education Capital Outlay, 5.75%,
6/1/09................................................ 205,250
----------
Hawaii (1.4%):
100,000 Honolulu, City & County, Series A, 4.70%, 1/1/98....... 101,500
----------
Illinois (5.3%):
25,000 Decatur, GO, 5.50%, 10/1/95............................ 25,001
200,000 Illinois State, 5.50%, 8/1/03.......................... 208,250
100,000 Illinois State Metropolitan Pier & Exposition
Authority, 5.05%, 6/15/98............................. 102,125
50,000 Illinois State Sales Tax Revenue, 6.70%, 6/15/96....... 50,937
----------
386,313
----------
Indiana (5.6%):
200,000 Concord, Community Schools Building Corp., 5.30%,
1/1/04................................................ 203,750
200,000 Indiana Bond Bank, 5.25%, 2/1/01....................... 204,500
----------
408,250
----------
Iowa (12.5%):
200,000 Ames, GO, 5.20%, 6/1/05................................ 202,500
110,000 Ames, Hospital Revenue Bonds, 5.70%, 8/15/00........... 115,363
100,000 Davenport, Series A, 5.40%, 6/1/06..................... 100,750
80,000 Davenport, Hospital Facility Revenue, 5.10%, 7/1/97.... 81,200
100,000 Iowa Higher Education Loan Authority Revenue, Private
College Facilities, 6.00%, 8/1/07..................... 100,125
150,000 Ottumwa, Community School District, 5.10%, 6/1/04...... 152,625
50,000 Polk County, 6.10%, 6/1/99............................. 52,062
100,000 Sloux City, School District, 5.00%, 6/1/01............. 101,625
----------
906,250
----------
Maryland (2.1%):
50,000 Maryland State, Fourth Series, 6.55%, 10/15/97......... 52,563
100,000 Prince Georges County, GO, 5.40%, 1/15/01.............. 103,875
----------
156,438
----------
</TABLE>
Continued
-10-
<PAGE>
THE COVENTRY GROUP
BRENTON INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Massachusetts (0.7%):
50,000 Massachusetts State Water Authority, 7.00%, 4/1/99....... $ 54,000
--------
Minnesota (9.1%):
150,000 Bloomington, Ref-Highway, 6.00%, 12/1/99................. 158,625
250,000 Hennepin County, GO, 5.90%, 12/1/96...................... 255,890
90,000 Rosemount, Port Authority, 5.50%, 2/1/06................. 91,912
150,000 Southern Minnesota Municipal Power Agency, Series B,
5.00%, 1/1/98........................................... 151,500
--------
657,927
--------
Nebraska (1.7%):
125,000 Omaha, Public Power District, Series B, 4.80%, 2/1/01.... 126,250
--------
Nevada (2.7%):
200,000 Nevada State University, 4.30%, 8/1/02................... 194,250
--------
New Mexico (1.4%):
100,000 Albuquerque, School District #12, 4.20%, 8/1/99.......... 99,500
--------
New York (2.8%):
100,000 Hempstead Town, Series A, 5.40%, 3/1/05.................. 102,625
100,000 New York State Dorm Authority Revenues, 5.50%, 5/15/06... 103,750
--------
206,375
--------
North Carolina (2.8%):
200,000 North Carolina Municipal Power Agency, 5.90%, 1/1/03..... 205,250
--------
North Dakota (1.0%):
75,000 West Fargo, Series D, 4.00%, 5/1/02...................... 69,844
--------
Pennsylvania (1.4%):
100,000 Bensalem Township, Water & Sewer Revenue, 5.90%, 12/1/04. 105,000
--------
Rhode Island (1.5%):
100,000 Providence, GO, 6.10%, 9/1/98............................ 105,375
--------
South Carolina (2.8%):
200,000 Piedmont Municipal Power South Carolina Electric, 5.00%,
1/1/01.................................................. 200,500
--------
South Dakota (1.4%):
100,000 South Dakota Housing Development Authority, Series E,
5.80%, 5/1/03........................................... 101,750
--------
Texas (10.2%):
25,000 Dallas, GO, 7.00%, 8/15/99............................... 26,250
150,000 Dallas, Independent School District, Public Property
Finance Contractual Obligation,
5.30%, 8/15/97.......................................... 153,562
200,000 Houston, Series C, 5.80%, 3/1/02......................... 212,500
100,000 McLennan County, GO, 6.25%, 6/1/97....................... 103,375
100,000 Tarrant County, Water Revenue Bonds, 5.70%, 3/1/01....... 104,750
</TABLE>
Continued
-11-
<PAGE>
THE COVENTRY GROUP
BRENTON INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas, continued:
100,000 Texas State, Series B, 5.00%, 10/1/03.................. $ 101,750
35,000 Texas State National Research Laboratory, 6.90%,
4/1/98................................................ 37,144
----------
739,331
----------
Washington (7.8%):
100,000 Grant County, Public Utility, 5.10%, 1/1/00............ 102,625
150,000 Seattle, Municipal Light & Power Revenue, 6.00%,
7/1/99................................................ 159,000
100,000 Washington State, Series R-93B, 4.88%, 10/1/02......... 101,500
200,000 Washington State Housing Finance Revenue Bonds, Series
1A-1, 5.05%, 6/1/00................................... 201,250
----------
564,375
----------
Wisconsin (8.9%):
50,000 Ashland, School District, 5.90%, 4/1/00................ 52,750
35,000 Beloit, GO, 5.55%, 4/1/00.............................. 36,313
100,000 Kenosha County, Series E, 5.70%, 11/1/08............... 102,250
50,000 Milwaukee County, GO, 6.30%, 10/1/95................... 50,003
100,000 Milwaukee County, Series A, 5.50%, 12/1/06............. 102,500
200,000 Wisconsin Housing & Economic Development Authority,
Series D, 5.75%, 1/1/04............................... 199,750
100,000 Wisconsin State, GO, Series 1, 4.40%, 5/1/98........... 100,375
----------
643,941
----------
Total Municipal Bonds 6,941,182
----------
INVESTMENT COMPANIES (3.4%):
248,408 Benchmark Tax Exempt Money Market Portfolio............ 248,408
----------
Total Investment Companies 248,408
----------
Total (Cost--$7,064,838)(a) $7,189,590
==========
</TABLE>
- ------
Percentages indicated are based on net assets of $7,260,527.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............. $127,719
Unrealized depreciation............. (2,967)
--------
Net unrealized appreciation......... $124,752
========
</TABLE>
GO--General Obligations
See notes to financial statements.
-12-
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS (98.0%):
Auto Parts (2.0%):
6,000 TRW, Inc................................................... $ 446,250
-----------
Banks (6.2%):
8,000 BankAmerica Corp........................................... 479,000
8,000 Barnett Banks, Inc......................................... 453,000
5,900 J. P. Morgan & Co.......................................... 456,513
-----------
1,388,513
-----------
Beverages (2.4%):
8,700 Anheuser-Busch Co.......................................... 542,663
-----------
Business Equipment & Services (2.0%):
15,500 WMX Technologies........................................... 441,750
-----------
Chemicals (6.1%):
6,700 Great Lakes Chemical Corp.................................. 453,088
8,000 IMC Global, Inc............................................ 507,000
8,500 Sigma Aldrich Corp......................................... 412,250
-----------
1,372,338
-----------
Electrical Equipment (5.5%):
10,500 AMP, Inc................................................... 404,250
4,900 Emerson Electric........................................... 350,350
7,500 General Electric Co........................................ 478,125
-----------
1,232,725
-----------
Electronic Components (3.7%):
14,000 Advanced Micro Devices, Inc.(b)............................ 407,750
8,000 Arrow Electronics, Inc.(b)................................. 435,000
-----------
842,750
-----------
Financial Services (5.2%):
20,000 Capital One Financial Corp................................. 587,500
10,000 MGIC Investment Corp....................................... 572,500
-----------
1,160,000
-----------
Food & Related (6.3%):
31,095 Archer Daniels Midland Co.................................. 478,086
15,000 Dean Foods Co.............................................. 427,500
8,000 Hershey Foods.............................................. 515,000
-----------
1,420,586
-----------
Forest & Paper Products (1.9%):
6,500 Kimberly Clark Corp........................................ 436,312
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care (4.5%):
6,500 Bristol Myers Squibb Corp.................................. $ 473,687
9,600 Merck & Co., Inc........................................... 537,600
-----------
1,011,287
-----------
Household Supply & Management (4.0%):
10,000 Columbia HCA Healthcare Corp............................... 486,250
20,000 Humana, Inc.(b)............................................ 402,500
-----------
888,750
-----------
Household-General Products (4.2%):
19,000 Newell Co.................................................. 470,250
8,000 Whirlpool Corp............................................. 462,000
-----------
932,250
-----------
Insurance (8.9%):
3,500 Loews Corp................................................. 509,250
8,000 SAFECO Corp................................................ 525,000
10,000 Unum Corp.................................................. 527,500
16,000 Value Health, Inc.(b)...................................... 424,000
-----------
1,985,750
-----------
Metal Fabrication (1.8%):
13,000 Trinity Industries......................................... 403,000
-----------
Motor Vehicles (3.8%):
11,000 General Motors Corp., Class H.............................. 451,000
9,000 General Motors Corp., Class E.............................. 409,500
-----------
860,500
-----------
Multiple Industry (3.9%):
17,000 Dial Corp.................................................. 420,750
8,100 Minnesota Mining & Manufacturing........................... 457,650
-----------
878,400
-----------
Petroleum (7.5%):
5,800 Amoco Corp................................................. 371,925
4,100 Mobil Corp................................................. 408,463
6,500 Schlumberger Limited....................................... 424,125
15,300 Sonat, Inc................................................. 489,600
-----------
1,694,113
-----------
Retail (6.0%):
6,500 Dayton Hudson Corp......................................... 493,187
</TABLE>
Continued
-13-
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail, continued:
14,000 Dillard Department Stores.................................. $ 446,250
15,000 Toys R Us(b)............................................... 405,000
-----------
1,344,437
-----------
Tires & Rubber Products (1.7%):
7,350 Bandag, Inc................................................ 388,631
-----------
Tobacco (2.4%):
6,515 Philip Morris Cos., Inc.................................... 544,003
-----------
Utilities-Electric (3.8%):
20,000 AES Corp.(b)............................................... 380,000
10,500 Houston Industries, Inc.................................... 463,312
-----------
843,312
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------- --------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities-Telecommunications (4.2%):
12,300 GTE Corp................................................. $ 482,775
14,000 Worldcom, Inc.(b)........................................ 449,750
-----------
932,525
-----------
Total Common Stocks 21,990,845
-----------
INVESTMENT COMPANIES (2.1%):
471,183 Goldman Federal Money Market Portfolio.................. 471,183
-----------
Total Investment Companies 471,183
-----------
Total (Cost--$20,110,725)(a) $22,462,028
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $22,437,669.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........... $2,793,926
Unrealized depreciation........... (442,623)
----------
Net unrealized appreciation....... $2,351,303
==========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-14-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
1. ORGANIZATION:
The Coventry Group (the "Group") was organized on January 8, 1992 as a
Massachusetts business trust, and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. Between the date of organization and the date
of commencement of operations of the Brenton U.S. Government Money Market
Fund, the Brenton Intermediate U.S. Government Securities Fund, the Brenton
Intermediate Tax-Free Fund, and the Brenton Value Equity Fund,
(individually, a "Fund"; collectively, the "Funds"), each a series of the
Group, the Funds earned no investment income and had no operations other
than incurring organizational expenses.
The Group is authorized to issue an unlimited number of shares which are
units of beneficial interest with a par value of $0.01 per share. Sales of
shares of the Funds may be made to the general public.
2. SIGNIFICANT ACCOUNTING PRINCIPLES:
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements. The policies are
in conformity with generally accepted accounting principles.
SECURITIES VALUATION:
Investments of the U.S. Government Money Market Fund are valued at either
amortized cost, which approximates market value, or at original cost
which, combined with accrued interest, approximates market value. Under
the amortized cost valuation method, discount or premium is amortized on
a constant basis to the maturity of the security. In addition, the U.S.
Government Money Market Fund may not (a) purchase any instrument with a
remaining maturity greater than thirteen months unless such investment is
subject to a demand feature, or (b) maintain a dollar-weighted-average
portfolio maturity which exceeds 90 days.
Investments in common and preferred stocks, commercial paper, corporate
bonds, municipal bonds, and U.S. Government securities and U.S.
Government agency securities of the Intermediate U.S. Government
Securities Fund, the Intermediate Tax-Free Fund, and the Value Equity
Fund (collectively "the variable net asset value funds") are valued at
their market values determined on the basis of the latest available bid
quotation in the principal market (closing sales prices if the principal
market is an exchange) in which such securities are normally traded.
Investments in investment companies are valued at their respective net
asset values as reported by such companies. Securities, including
restricted securities, for which market quotations are not readily
available, are valued at fair market value by the investment adviser
under the supervision of the Group's Board of Trustees. The difference
between the cost and market values of investments held by the variable
net asset value funds are reflected as either unrealized appreciation or
depreciation.
Continued
-15-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 1995
(UNAUDITED)
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization
of premium or discount. Dividend income is recorded on the ex-dividend
date. Gains or losses realized on sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
REPURCHASE AGREEMENTS:
The Funds may acquire repurchase agreements from financial institutions
such as banks and broker dealers which the investment adviser deems
creditworthy under guidelines approved by the Board of Trustees, subject
to the seller's agreement to repurchase such securities at a mutually
agreed-upon date and price. The repurchase price generally equals the
price paid by a Fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the
underlying portfolio securities. The seller, under a repurchase
agreement, is required to maintain the value of collateral held pursuant
to the agreement at not less than the repurchase price (including accrued
interest). Securities subject to repurchase agreements are held by the
Fund's custodian or another qualified custodian or in the Federal
Reserve/Treasury book-entry system. Repurchase agreements are considered
to be loans by a Fund under the 1940 Act.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the U.S. Government Money Market Fund. Dividends from net investment
income are declared and paid monthly for the Intermediate U.S. Government
Securities Fund and the Intermediate Tax-Free Fund. Dividends from net
investment income are declared and paid quarterly for the Value Equity
Fund. Distributable net realized capital gains, if any, are declared and
distributed at least annually for each Fund.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for organization costs, expiring
capital loss carryforwards and deferrals of certain losses.
FEDERAL INCOME TAXES:
It is the policy of each of the Funds to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
Continued
-16-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 1995
(UNAUDITED)
OTHER:
Expenses that are directly related to one of the Funds are charged
directly to that Fund. Expenses relating to the Funds collectively are
prorated to the Funds on the basis of each Fund's relative net assets.
Other expenses for the Group are prorated to the Funds and any other
portfolios of the Group on the basis of relative net assets.
ORGANIZATION COSTS:
All expenses in connection with the Funds' organization and registration
under the 1940 Act and the Securities Act of 1933 were paid by the Funds.
Such expenses are being amortized over a period of two years commencing
with the date of the initial public offering.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
period from April 1, 1995 to September 30, 1995 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- ----------
<S> <C> <C>
Intermediate U.S. Government Securities Fund.......... $12,925,646 $ 54,448
Intermediate Tax-Free Fund............................ 1,611,468 402,242
Value Equity Fund..................................... 10,371,827 5,732,812
</TABLE>
4. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to the Funds by Brenton Bank, N.A.
("Brenton Bank"). Under the terms of the investment advisory agreement,
Brenton Bank is entitled to receive fees computed daily based on a
percentage of the average net assets of each Fund. Brenton Bank also serves
as custodian to the Funds. The Northern Trust Company serves as sub-
investment advisor to the U.S. Government Money Market Fund. For such
services, the Northern Trust Company receives an annual fee of 0.08% of the
U.S. Government Money Market Fund's average daily net assets.
The Winsbury Company Limited Partnership d/b/a The Winsbury Company
("Winsbury") is an Ohio limited partnership. The sole general partner of
Winsbury is BISYS Fund Services, Inc. The sole limited partner of Winsbury
is WC Subsidiary Corporation. BISYS Fund Services, Inc., BISYS Fund Services
Ohio, Inc., and WC Subsidiary Corporation are all subsidiaries of The BISYS
Group, Inc. On October 10, 1995, Winsbury changed its name to BISYS Fund
Services Limited Partnership d/b/a BISYS Fund Services.
Winsbury, with whom certain officers and trustees of the Group are
affiliated, serves the Funds as administrator. Such officers and trustees
are paid no fees directly by the Funds for serving as officers and
Continued
-17-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 1995
(UNAUDITED)
trustees of the Group. Under the terms of the administration agreement,
Winsbury's fees are computed daily as a percentage of the average net assets
of each of the Funds.
BISYS Fund Services Ohio, Inc. (the "Company"), an affiliate of Winsbury,
serves as transfer agent to the Funds. Under the terms of the transfer
agency agreement, the Company is entitled to receive fees based upon a
specified amount per shareholder with specified minimum per portfolio
amounts and surcharges, plus certain out-of-pocket expenses. The Company
also serves as fund accountant. Under the terms of the fund accounting
agreement, the Company receives fees monthly at an annual rate of $30,000
for the U.S. Government Money Market Fund, the Intermediate U.S. Government
Securities Fund, and the Value Equity Fund, and $40,000 for the Intermediate
Tax-Free Fund, plus certain out-of-pocket expenses.
The Funds have adopted a Distribution and Shareholder Service Plan in
accordance with Rule 12b-1 under the 1940 Act, pursuant to which the Funds
are authorized to pay or reimburse Winsbury, as distributor, a periodic
amount, calculated at an annual rate not to exceed 0.50% of the average
daily net asset value of the Funds. These fees are used by Winsbury to pay
banks, including Brenton Bank, broker dealers and other institutions, or to
reimburse Winsbury or its affiliates, for administration, distribution and
shareholder services in connection with the distribution of Fund shares.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios.
Continued
-18-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 1995
(UNAUDITED)
Information regarding these transactions is as follows for the period from
April 1, 1995 to September 30, 1995:
<TABLE>
<CAPTION>
U.S. INTERMEDIATE
GOVERNMENT U.S.
MONEY GOVERNMENT INTERMEDIATE VALUE
MARKET SECURITIES TAX-FREE EQUITY
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY
FEES:
Annual fee before
voluntary fee
reductions (percentage 0.40% of first 0.50% of first 0.40% of first 0.74% of first
of average net assets). $250 million $25 million $25 million $25 million
0.30% of excess 0.30% of excess 0.30% of excess 0.30% of excess
Voluntary fee
reductions............. $41,028 $2,838 $12,115 $80
ADMINISTRATION FEES:
Annual fee before
voluntary fee
reductions (percentage
of average net assets). 0.20% 0.20% 0.20% 0.20%
Voluntary fee
reductions............. $69 $21
DISTRIBUTION AND
SERVICES FEES:
Annual fee before
voluntary fee
reductions (percentage
of average net assets). 0.50% 0.50% 0.50% 0.50%
Voluntary fee
reductions............. $38,213 $26,910 $8,405 $22,076
TRANSFER AGENT & FUND
ACCOUNTANT FEES:....... $27,779 $27,986 $34,295 $30,437
</TABLE>
-19-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE
U.S. GOVERNMENT U.S. GOVERNMENT
MONEY MARKET FUND SECURITIES FUND
------------------------- -------------------------
SIX MONTHS AUGUST 10, SIX MONTHS AUGUST 10,
ENDED 1994 TO ENDED 1994 TO
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
1995 1995 (A) 1995 1995 (A)
------------- ---------- ------------- ----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.00 $ 1.00 $ 9.99 $ 10.00
------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 0.026 0.028 0.30 0.35
Net realized and
unrealized gains
(losses) from
investments......... 0.28 (0.02)
------- ------- ------- -------
Total from
Investment
Activities......... 0.026 0.028 0.58 0.33
------- ------- ------- -------
DISTRIBUTIONS
Net investment income.. (0.026) (0.028) (0.30) (0.34)
------- ------- ------- -------
Total Distributions. (0.026) (0.028) (0.30) (0.34)
------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.......... $ 1.00 $ 1.00 $ 10.27 $ 9.99
======= ======= ======= =======
Total Return (excludes
sales charge).......... 2.63%(b) 2.84%(b) 5.82%(b) 3.42%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000).......... $30,908 $27,810 $32,141 $16,438
Ratio of expenses to
average net assets.... 0.73%(c) 0.97%(c) 1.06%(c) 1.53%(c)
Ratio of net investment
income to average net
assets................ 5.20%(c) 4.37%(c) 6.05%(c) 5.71%(c)
Ratio of expenses to
average net assets*... 1.46%(c) 1.66%(c) 1.54%(c) 2.03%(c)
Ratio of net investment
income to average net
assets*............... 4.47%(c) 3.68%(c) 5.57%(c) 5.21%(c)
Portfolio Turnover..... 0.28% 20.69%
</TABLE>
- ------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-20-
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE
TAX-FREE FUND VALUE EQUITY FUND
------------------------- -------------------------
SIX MONTHS AUGUST 10, SIX MONTHS AUGUST 10,
ENDED 1994 TO ENDED 1994 TO
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
1995 1995 (A) 1995 1995 (A)
------------- ---------- ------------- ----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 9.98 $10.00 $ 10.83 $ 10.00
------ ------ ------- -------
INVESTMENT ACTIVITIES
Net investment income.. 0.18 0.15 0.05 0.09
Net realized and
unrealized gains
(losses) from
investments........... 0.20 (0.03) 1.51 0.83
------ ------ ------- -------
Total from Investment
Activities........... 0.38 0.12 1.56 0.92
------ ------ ------- -------
DISTRIBUTIONS
Net investment income.. (0.18) (0.14) (0.05) (0.09)
------ ------ ------- -------
Total Distributions... (0.18) (0.14) (0.05) (0.09)
------ ------ ------- -------
NET ASSET VALUE,
END OF PERIOD.......... $10.18 $ 9.98 $ 12.34 $ 10.83
====== ====== ======= =======
Total Return (excludes
sales charge).......... 3.81%(b) 1.27%(b) 14.44%(b) 9.25%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000).......... $7,261 $6,408 $22,438 $15,628
Ratio of expenses to
average net assets.... 1.33%(c) 2.47%(c) 1.45%(c) 1.80%(c)
Ratio of net investment
income to average net
assets................ 3.60%(c) 2.41%(c) 0.96%(c) 1.39%(c)
Ratio of expenses to
average net assets*... 2.19%(c) 2.97%(c) 1.93%(c) 2.30%(c)
Ratio of net investment
income to average net
assets*............... 2.74%(c) 1.91%(c) 0.47%(c) 0.89%(c)
Portfolio Turnover..... 6.49% 3.03% 31.08% 18.30%
</TABLE>
- ------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-21-
<PAGE>
INVESTMENT ADVISOR
Brenton Bank, N.A.
400 Locust Street
Des Moines, Iowa
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219
LEGAL COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
AUDITORS
Ernst & Young LLP
10 West Broad Street
Suite 2300
Columbus, Ohio 43215
[Logo of Brenton Mutual Funds]
[Logo of Brenton Bank]
Investment Advisor
SEMI-ANNUAL REPORT
TO
SHAREHOLDERS
SEPTEMBER 30, 1995
