<PAGE>
MESSAGE FROM THE CHAIRMAN AMCORE VINTAGE MUTUAL FUNDS
- -------------------------------------------------------------------------------
Dear Shareholders:
We are very pleased to report that the year ended March 31, 1996, was a period
of solid growth for the AMCORE Vintage Mutual Funds. During the period, total
net assets under management increased substantially--from roughly $400 million
to $570 million, a 43% increase over the 12 months.
In particular, the AMCORE Vintage Aggressive Growth Fund experienced dramatic
asset growth. Launched on October 2, 1995, with approximately $7.5 million in
its portfolio, the Fund grew to $23.3 million in net assets under management
by period's end. As a result, we are pleased to report that effective April 3,
1996, the Fund qualified to be listed on the NASDAQ stock market, which means
that you can now follow the Fund's performance in publications such as The
Wall Street Journal and major metropolitan newspapers.
A FOND FAREWELL . . .
It was with great reluctance that we bid farewell to Dean Countryman, Senior
Vice President and Senior Fixed Income Manager, when he retired at the end of
1995. After joining AMCORE Capital Management in 1987, Mr. Countryman was
instrumental in the launch of our Fund family and managed three of the four
original Funds. One of these, the AMCORE Vintage Intermediate Tax-Free Fund,
was ranked 26th out of 135 intermediate municipal debt funds by Lipper
Analytical Services for its one-year performance through March 31, 1996.*
. . . AND A WARM WELCOME TO NEW MANAGERS
On January 1, 1996, Elizabeth S. Pierson took over the day-to-day management
responsibilities for the AMCORE Fixed Income, Fixed Total Return, Intermediate
Tax-Free and U.S. Government Obligations Funds. Over the past 12 years,
Ms. Pierson handled the investment management and credit responsibilities for
a number of individually managed investment advisory portfolios. She has also
been the Co-Manager for the AMCORE Balanced Fund since its inception on June
1, 1995.
On February 1, 1996, Julie A. O'Rourke was named Co-Manager of the Balanced
Fund. Ms. O'Rourke began her career at AMCORE Capital Management, Inc. after
graduating from Rockford College with a degree in finance in 1991. She
received her Chartered Financial Analyst designation in 1995 and today is also
the Chairperson of the Equity Research Committee.
IN CLOSING . . .
In the pages that follow, you will find a detailed discussion of the
performance of each of the AMCORE Vintage Mutual Funds during the year ended
March 31, 1996. We urge you to read this material closely to better understand
the performance of your investments.
Finally, we thank you for your continued confidence in us. We look forward to
serving your investment management needs now and in the future. As always, if
you would like a prospectus, have any questions or require any assistance,
please don't hesitate to call us at 1-800-438-6375.
Sincerely,
/s/ Walter B. Grimm
- -------------------
Walter B. Grimm Chairman
April 15, 1996
*The rankings are based on total return; past performance is no guarantee of
future results. During the period for which this ranking is based, the Fund
waived fees. In the absence of these waivers, the ranking may have been lower.
- -------------------------------------------------------------------------------
Shares of the AMCORE Vintage Mutual Funds are NOT INSURED BY THE FDIC or any
other agency. Shares are not deposits or obligations of, or guaranteed or
endorsed by, AMCORE Financial Inc., parent of AMCORE Capital Management, Inc.,
or its affiliates. Investment products involve investment risks, including the
possible loss of principal.
For more complete information on any of the AMCORE Vintage Mutual Funds,
including fees and expenses, please call 1-800-438-6375 for a prospectus.
Please read the prospectus carefully before investing or sending money.
<PAGE>
MESSAGE FROM THE INVESTMENT ADVISER AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
Dear Shareholders:
The past 12 months were nothing short of spectacular for both stock and bond
investors. Cheered by the Federal Reserve's moves to ease interest rates,
steady reports of record-breaking corporate earnings and little evidence of
inflation, the stock market broke through the 5000 level on the Dow, then
continued upward to 5600. While volatility has increased in recent months,
enthusiasm for stocks did not wane. In the first three months of 1996, record
levels of cash flowed into stock mutual funds.
The fixed-income markets, too, performed well during the period. Bouncing back
after 1994, the bond market blossomed as interest rates declined amid
indications that the economy was slowing. In the first quarter of 1996,
however, many of the factors that had fueled the rally--expectations of low
inflation, stabilizing interest rates and apparent progress toward a balanced
budget--vanished. As a result, rates spiked upward and the market fell back.
Nevertheless, the overall trend during the year ended March 31, 1996, was
positive.
RECENT NUMBERS ROIL THE MARKETS
Much of the recent weakness in the marketplace, we believe, is due to a series
of reports on the strength of the economy and a sharp rise in certain commodity
prices. As a result, fears of surging growth and inflation are once again
rippling through the marketplace. We believe that these fears may be
exaggerated, however, since it appears unlikely that the current expansion will
shift to a new plateau.
Most components of domestic demand--including consumer spending, business
investment and government expenditures--have been on a downward trend since
mid-1995. For example, non-auto retail sales have trended down to annual growth
levels of approximately 2% from year-ago levels of nearly 6%. The major
determinants of retail spending--wages, debt and employment--show no signs of
resurging.
Likewise, business investment spending growth is projected to shrink through
the balance of 1996, and, given the political climate, we expect government
spending to increase very little, thus acting as a drag on cyclical growth.
As a result, demand pressures seem unlikely to push growth to capacity limits,
helping to keep price pressures in check and interest rates relatively low.
While market sentiment shifts between fears of either too little or too much
growth, underlying trends favor a low-growth, low-inflation outlook, which
should prove positive for both stocks and bonds.
In coming months, we expect to keep the Funds fully invested. Though our equity
management style is "bottom-up" and emphasizes the selection of good companies
across all industries, current expectations favor several sectors, including
technology and health care. The bond portfolios, on balance, should remain in
the mid to slightly higher end of their maturity ranges. In the pages that
follow, you will find discussions of the performance of each of the AMCORE
Vintage Mutual Funds, and we urge you to read this material closely.
IN CLOSING . . .
Although a repeat of the spectacular performance of the past year is highly
unlikely, we believe the markets will turn in positive returns during 1996,
barring any exogenous shocks. We intend to position the AMCORE Vintage Mutual
Funds to take advantage of opportunities in the markets as they occur.
Sincerely,
/s/ Jay H. Evans
- ----------------
Jay H. Evans
President
AMCORE Capital Management, Inc.
April 15, 1996
-2-
<PAGE>
Performance Report AMCORE Vintage Mutual Funds
- --------------------------------------------------------------------------------
The AMCORE Vintage Aggressive Growth Fund
Introduced on October 2, 1995, this Fund is designed for investors seeking
aggressive long-term capital appreciation. With holdings in over 80 quality,
high-growth, large- and small-capitalization companies, the Fund is widely
diversified across a broad spectrum of industries./1/
While it is too early to make any definitive judgment regarding the Fund's
performance, we are pleased to report that from its inception through March 31,
1996, the Fund had a total return of 9.10%, compared to a return of 5.60% for
the NASDAQ Composite Index.
Although investor sentiment favored large-capitalization stocks during this
time, many of the Fund's holdings of technology, health-care, consumer-cyclical
and interest-rate sensitive stocks made impressive gains.
Sentiment shifts toward growth
In the months ahead, we expect investors' attention to return to smaller-
capitalization companies. In a slow-growth environment, small-cap companies
often offer greater potential for above-average earnings growth.
As a result, we expect the market in the year ahead to favor the kind of stocks
in which the Fund invests. We are also very optimistic about the long-term
prospects for technology stocks. Despite recent pressures on this sector, sales
of computers and business equipment remain strong. We believe that for those
companies with solid products, stable management and strong balance sheets, the
potential for earnings growth is substantial.
At period's end, the Fund's top five holdings were Cisco Systems (2.79%),
Johnson & Johnson (2.53%), Computer Associates International (2.46%), Eastman
Chemical (1.78%) and Cabletron Systems (1.71%).+
- ------
/1/ Small-cap companies typically carry additional risks since smaller
companies generally have a higher risk of failure and, by definition, are not
as well established as blue-chip companies. Historically, small-company stocks
have experienced a greater degree of market volatility than stocks on average.
+ The composition of the Fund's holdings is subject to change.
[GRAPH APPEARS HERE]
AMCORE Vintage Aggressive Growth Fund
Value of a $10,000 Investment
Aggressive Growth Fund
Amcore Vintage NASDAQ Composite S&P 500
Aggressive Growth Fund Index Stock Index
9/29/95 10000 10000 10000
3/31/96 10910 10560 11171
Aggregate Total Return
Since
Inception
(10/2/95)
Aggressive Growth Fund 9.10%
Past performance is not predictive of future results. The value of shares in
the AMCORE Vintage Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost. The performance of the AMCORE
Vintage Aggressive Growth Fund is measured against both the S&P Stock Index, an
unmanaged index generally representative of the stock market as a whole, and the
NASDAQ Composive Index, an unmanaged index generally representative of the
performance of small-capitalization stocks. The indices do not reflect the
deduction of expenses associated with a mutual fund, such as investment
management fees. The Fund's performance reflects the deduction of fees for
these value-added services.
-3-
<PAGE>
Performance Report AMCORE Vintage Mutual Funds
- --------------------------------------------------------------------------------
The AMCORE Vintage Equity Fund
While the ride upward was bumpy at times during the 12 months ended March 31,
1996, the performance of the equity markets was dramatic. During the period,
the Dow Jones Industrial Average soared some 1500 points, with stocks of
quality, established companies posting some of the most impressive gains. With
an emphasis on such companies, the Fund posted a total return of 29.96%,
compared to a return of 32.10% for its benchmark, the S&P 500 Stock Index.
Throughout the period, the Fund was widely diversified across a broad spectrum
of industries, and few sectors proved disappointing. The Fund's holdings in the
banking, technology, medical equipment and chemical industries did particularly
well. Among the strongest performers were Wells Fargo & Co. (0.86% of the
portfolio); Caremark International, a spinoff of Baxter International (0.89%);
Cisco Systems (1.54%); Monsanto (1.45%); and Allied Signal (1.26%)--all of
which gained more than 66% for the period. PepsiCo (1.05%); Schlumberger, an
oil-services company (0.75%); and Household International (1.27%) also made
solid contributions to performance.
Perceptions of growth startle the market
In recent weeks, stocks gave back some ground as several economic indicators
signaled that retail sales had picked up and that the economy was not slowing
as rapidly as had been thought. However, a closer examination of the numbers
revealed that much of the increase in economic activity during the first
quarter of 1996 may have been fueled by special factors such as tax refunds,
which are unsustainable. While growth prospects are positive, market
expectations should eventually recognize the economy's underlying slow-growth,
low-inflation mode.
Such an environment should be good for stocks. While we expect earnings to
continue to grow, percentage increases will decline, causing some investors,
after several years of record-breaking earnings, to overreact. We will view
dips in the market as buying opportunities, since we believe long-term
prospects for the market are bright.
As of March 31, 1996, the Fund's top five holdings were Hewlett Packard
(2.22%), General Electric (2.03%), Medtronic (1.98%), Eastman Kodak (1.85%) and
Walt Disney (1.81%).+
- ------
+ The composition of the Fund's holdings is subject to change.
[GRAPH APPEARS HERE]
AMORE Vintage Equity Fund
Value of a $10,000 Investment
Equity Fund:
Amcore Vintage S&P 500
Equity Fund Stock Index
12/15/92 10000 10000
3/31/93 10245 10515
3/31/94 10291 10664
3/31/95 11911 12324
3/31/96 15480 16280
Average Annual Total Return
Since
Inception
1 Year (12/15/92)
Equity Fund 29.96% 14.19%
Past performance is not predictive of future results. The value of shares in
the AMCORE Vintage Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost. The performance of the AMCORE
Vintage Equity Fund is measured against the S&P 500 Stock Index, an unmanaged
index generally representative of the performance of the stock market as a
whole. The index does not reflect the deduction of expenses associated with a
mutual fund, such as investment management fees. The Fund's performance
reflects the deduction of fees for these value-added services.
-4-
<PAGE>
Performance Report AMCORE Vintage Mutual Funds
- --------------------------------------------------------------------------------
The AMCORE Vintage Balanced Fund
Intended for investors seeking a combination of growth and income, the Fund was
launched on June 1, 1995. Invested in quality growth stocks, high-quality
corporate bonds and U.S. Government securities, the Fund offers investors the
potential to capitalize on opportunities in both the stock and bond markets.
Early results are encouraging
During the first 10 months of the Fund's operation, it became evident that
stocks offered investors relatively higher return potential than bonds.
Consequently, throughout the period, the portfolio's assets were gradually
shifted to favor stocks. The Fund's allocation to bonds was decreased from 45%
to 32%, while its stock investments increased from 55% to 62% of the portfolio,
with the remaining 6% invested in cash and cash equivalents. This change in
emphasis helped position the Fund to better weather the volatility in the bond
markets in late 1995 and early 1996.
Since its inception on June 1, 1995, through March 31, 1996, the Fund produced
a total return of 13.29%, compared to the 12.62% return of its benchmark, a
hybrid index that gives equal weighting to the S&P 500 Stock Index and the
Lehman Brothers Intermediate Government/Corporate Bond Index.
A conservative approach
While we believe that the outlook is positive for both the stock and bond
markets over the balance of 1996, we expect the fixed-income markets to be
unsettled until the direction of the economy becomes clearer. As a result, we
anticipate maintaining the portfolio's current allocation between stocks and
bonds for some time to come.
The fixed-income portion of the Fund was invested primarily in U.S. Government
securities, resulting in an average credit rating of AAA (Standard & Poor's)
for its holdings. The Fund's average maturity was 3.78 years.
As of March 31, 1996, the Fund's top five equity holdings were Gillette
(1.87%), NationsBank (1.73%), General Electric (1.69%), American International
Group (1.66%) and Procter & Gamble (1.59%).+
- ------
+The composition of the Fund's holdings is subject to change.
[GRAPH APPEARS HERE]
AMCORE Vintage Balanced Fund
Value of a $10,000 Investment
Balanced Fund:
50% S&P 500 Stock Index
& 50% Lehman Brothers
Amcore Vintage Intermediate Government/Corp.
Balanced Fund Bond Index
6/1/95 10000 10000
3/31/96 11329 11262
Aggregate Total Return
Since
Inception
(6/1/95)
Balanced Fund 13.29%
Past performance is not predictive of future results. The value of shares in
the AMCORE Vintage Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost. The performance of the AMCORE
Vintage Balanced Fund is measured against a composite of the S&P 500 Stock
Index, an unmanaged index generally representative of the performance of the
U.S. stock market, and the Lehman Brothers Intermediate Government/Corporate
Bond Index, an unmanaged index generally considered to be representative of the
performance of government and corporate bonds with maturities of 1-10 years. In
the composite, each index is given a 50% weighting. The two indices do not
reflect the deduction of expenses associated with a mutual fund, such as
investment management fees. The Fund's performance reflects the deduction of
fees for these value-added services.
-5-
<PAGE>
Performance Report AMCORE Vintage Mutual Funds
- --------------------------------------------------------------------------------
The AMCORE Vintage Fixed Total Return Fund
Launched on June 15, 1995, when investors expected interest rates to keep
falling and the Federal Reserve to nudge them lower if necessary, the Fund's
average maturity ranged between 4.9 and 6.5 years.
When rates began to rise in early 1996, maturities were shortened to help
maintain share price stability for the Fund. In February, with the expectation
that rates might spike higher on the announcement of stronger-than-anticipated
economic growth, the Fund was positioned conservatively. Yet, such defensive
moves were not enough to withstand the waves of negative sentiment that flooded
the marketplace in the first quarter. As a result, since its inception, the
Fund produced a total return of 3.40%, compared to 4.69% for its benchmark, the
Lehman Brothers Intermediate Government/Corporate Bond Index.
Solid footing in a shaky market
Given the environment, we were pleased with the Fund's performance during the
period. In the months ahead, we expect the marketplace to continue to be
somewhat volatile. With a shorter average maturity of 4.9 years as of March 31,
1996, we believe the Fund is well positioned to weather short-term swings in
interest rates. In addition, in recent weeks, we have increased the Fund's cash
holdings slightly. Consequently, as opportunities to lock in higher yields
arise, the Fund will have the liquidity necessary to capitalize on them.
As of March 31, 1996, approximately 43% of the Fund's assets was invested in
U.S. Government securities, 51% in corporate bonds and 6% in cash and cash
equivalents. The average credit quality of our holdings was AAA (Standard &
Poor's).+
- ------
+The composition of the Fund's holdings is subject to change.
[GRAPH APPEARS HERE]
AMCORE Vintage Fixed Total Return Fund
Value of a $10,000 Investment
Fixed Total Return Fund:
AMCORE Vintage Lehman Brothers
Fixed Total Intermediate Government/
Return Fund Corp. Bond Index
6/15/95 10000 10000
3/31/96 10340 10469
Aggregate Total Return
Since
Inception
(6/15/95)
Fixed Total Return Fund 3.40%
Past performance is not predictive of future results. The value of shares in
the AMCORE Vintage Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost. The performance of the AMCORE
Vintage Fixed Total Return Fund is measured against the Lehman Brothers
Intermediate Government/Corporate Bond Index, an unmanaged index generally
representative of the performance of government and corporate bonds with
maturities of 1-10 years. The index does not reflect the deduction of expenses
associated with a mutual fund, such as investment management fees. The Fund's
performance reflects the deduction of fees for these value-added services.
-6-
<PAGE>
Performance Report AMCORE Vintage Mutual Funds
- --------------------------------------------------------------------------------
The AMCORE Vintage Fixed Income Fund
Given the expectation that interest rates would continue to ease, we extended
maturities very slightly as bond prices firmed in mid-1995. However, market
sentiment rapidly changed in the first quarter of 1996.
Nevertheless, due to our conservative approach, the Fund fell short of its
industry benchmark for the 12-month period, posting a total return of 8.74%
versus a return of 9.56% for the Lehman Brothers Intermediate
Government/Corporate Bond Index.
A cautious approach
We anticipate that interest rates will trend lower as the economy continues its
slow growth path. In the near term, however, we expect the fixed-income markets
to be somewhat volatile due to the mixed signals the economy is currently
sending to investors. The Presidential election, too, can be expected to
increase discussion--and investors' anxiety--over the direction of interest
rates in the coming months.
As a result, we expect to continue to approach the markets cautiously. With
approximately 9% of its assets invested in cash, the Fund is positioned to take
advantage of higher yields should the opportunity arise. As of March 31, 1996,
approximately 45% of the portfolio was invested in U.S. Government securities
and 46% in corporate bonds. The average credit quality of our holdings was AA1
(Moody's), and the average maturity was 5.14 years.+
- ------
+The composition of the Fund's holdings is subject to change.
[GRAPH APPEARS HERE]
AMCORE Vintage Fixed Income Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
Lehman Brothers Intermediate
DATE AMCORE Vintage Government/ Corp.
Fixed Income Fund Bond Index
-------- ----------------- ----------------------------
<S> <C> <C>
12/15/92 10000 10000
3/31/93 10454 10469
3/31/94 10708 10733
3/31/95 11079 11214
3/31/96 12047 12286
</TABLE>
Average Annual Total Return
Since
Inception
1 Year (12/15/92)
Fixed Income Fund 8.74% 5.82%
Past performance is not predictive of future results. The value of shares in
the AMCORE Vintage Funds will fluctuate so that the shares, when redeeed, may be
worth more or less than their original cost. The performance of the AMCORE
Vintage Fixed Income Fund is measured against the Lehman Brothers Intermediate
Government/Corporate Bond Index, an unmanaged index generally representative of
the performance of government and corporate bonds with maturities of 1-10 years.
The index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management fees. The Fund's performance reflects the
deduction of fees for these value-added services.
-7-
<PAGE>
Performance Report AMCORE Vintage Mutual Funds
- --------------------------------------------------------------------------------
The AMCORE Vintage Intermediate Tax-Free Fund/2/
The tax-free bond markets often behave differently than the taxable bond
markets, which helped a great deal during the volatility of the past year.
Investors in municipal bonds seemed to be somewhat less concerned about the ups
and downs of interest rates, although flat-tax discussions and supply problems
affected the marketplace.
Neither issue, however, created the kind of anxiety or volatility that rippled
through the taxable market. As a result, the tax-free market and the Fund
performed strongly during the 12 months ended March 31, 1996. For the period,
the Fund posted a total return of 7.43% compared to 8.57% for its benchmark,
the Merrill Lynch Intermediate Municipal Bond Index.
Fading flat-tax fears
With flat-tax discussions abating, we expect the municipal markets to be
relatively stable in the months ahead. Of course, the topic may surface again
during the Presidential campaign, but it is now fairly evident that a drastic
reform of the tax structure is not likely to occur any time soon. Moreover, due
to taxpayers' reluctance to authorize new borrowing, which has restrained
supply, the quality of new issues has increased. The result is a relatively
positive environment in the municipal markets.
No major changes in the Fund's allocation or maturity structure are
anticipated. We expect to continue to maintain the portfolio's average maturity
in the intermediate range in an effort to maximize yield and the Fund's
flexibility. As of March 31, 1996, the Fund was widely diversified, with
holdings in 30 states. The average credit quality of its holdings was AA
(Standard & Poor's), and the average maturity of the portfolio was 7.4 years.+
- ------
/2/The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
+The composition of the Fund's holdings is subject to change.
[GRAPH APPEARS HERE]
AMCORE Vintage Intermediate Tax-Free Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
Merrill Lynch
AMCORE Vintage Intermediate
Intermediate Municipal
Year Tax-Free Fund Bond Index
<S> <C> <C>
2/16/93 10,000 10,000
3/31/93 10,090 10,112
3/31/94 10,372 10,324
3/31/95 10,920 10,959
3/31/96 11,731 11,898
</TABLE>
Average Annual Total Return
Since
Inception
1 Year (2/16/93)
Intermediate
Tax-Free Fund 7.43% 5.25%
Past performance is not predictive of future results. The value of shares in
the AMCORE Vintage Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost. The performance of the AMCORE
Vintage Intermediate Tax-Free Fund is measured against the Merrill Lynch
Intermediate Municipal Bond Index, an unmanaged index generally representative
of the performance of municipal bonds with maturities of 1-20 years. The index
does not reflect the deduction of expenses associated with a mutual fund, such
as investment management fees. The Fund's performance reflects the deduction of
fees for these value-added services.
-8-
<PAGE>
PERFORMANCE REPORT AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
THE AMCORE VINTAGE U.S. GOVERNMENT OBLIGATIONS FUND
Flexibility was the key to success in the money markets over the past 12
months. Early in the period, interest rates fell as the economy slowed and
fears of inflation dissipated--only to rise again in the first quarter of 1996,
when evidence appeared that growth had not dropped off as dramatically as
expected.
Given this volatile and challenging environment, we approached the markets
cautiously throughout the period. As rates trended lower last fall, assets were
invested primarily in longer-dated, short-term securities, resulting in an
average portfolio maturity of approximately 65 days near year-end.
Subsequently, as upward pressures developed this spring, we shortened
maturities to maintain flexibility. As of March 31, 1996, the average maturity
of the portfolio was approximately 45 days.
CHOPPY MARKETS AHEAD
Despite the mixed signals the economy is currently sending to the markets, we
believe that growth remains slow. Nevertheless, until the economy's direction
becomes clear, we expect the money markets to be a bit jumpy and interest rates
to trade within a narrow range. Changes in the portfolio's maturity structure
will depend on changes in economic and market trends.
- --------------------------------------------------------------------------------
Some of the fees of the Funds are currently being waived, resulting in higher
total returns than would occur if the full fees were charged. Although the
AMCORE Vintage U.S. Government Obligations Fund seeks to maintain a stable net
asset value of $1.00, there is no assurance that it will be able to do so. The
Fund is neither insured nor guaranteed by the U.S. Government.
The AMCORE Vintage Mutual Funds are distributed by BISYS Fund Services.
Shares in the Funds involve investment risks, including possible loss of
principal, so that an investor's shares when redeemed, may be worth more or
less than their original cost. Fund shares are not deposits or obligations of,
or guaranteed or endorsed by, AMCORE Financial Inc., any of its subsidiaries or
AMCORE Capital Management Inc., nor are they insured by the FDIC or any other
agency.
This literature is authorized for distribution only when preceded or
accompanied by a prospectus.
-9-
<PAGE>
TABLE OF CONTENTS
Report of Independent Auditors
Page 11
Statements of Assets and Liabilities
Page 12
Statements of Operations
Page 14
Statements of Changes in Net Assets
Page 16
Schedules of Portfolio Investments
Page 19
Notes to Financial Statements
Page 35
Financial Highlights
Page 42
-10-
<PAGE>
REPORT OF INDEPENDENT AUDITORS AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of The Coventry Group
We have audited the accompanying statements of assets and liabilities,
including the schedules of portfolio investments of the AMCORE Vintage Mutual
Funds (one of the series of portfolios constituting The Coventry Group,
comprising, respectively, AMCORE Vintage U.S. Government Obligations Fund,
AMCORE Vintage Equity Fund, AMCORE Vintage Fixed Income Fund, AMCORE Vintage
Intermediate Tax-Free Fund, AMCORE Vintage Balanced Fund, AMCORE Vintage Fixed
Total Return Fund, and the AMCORE Vintage Aggressive Growth Fund) as of March
31, 1996, and the related statements of operations, the statements of changes
in net assets, and the financial highlights presented herein for each of the
respective years or periods in the period ended March 31, 1996. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
March 31, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
respective portfolios constituting the AMCORE Vintage Mutual Funds of The
Coventry Group as of March 31, 1996, the results of their operations, the
changes in their net assets and the financial highlights presented herein for
each of the respective years or periods in the period ended March 31, 1996, in
conformity with generally accepted accounting principles.
Ernst & Young LLP
Columbus, Ohio
April 24, 1996
-11-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1996
<TABLE>
<CAPTION>
U.S.
GOVERNMENT FIXED INTERMEDIATE
OBLIGATIONS EQUITY INCOME TAX-FREE
FUND FUND FUND FUND
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value..... $ 91,206,720 $211,263,976 $88,485,027 $41,809,931
Repurchase agreements..... 63,204,500 -- -- --
------------ ------------ ----------- -----------
Total Investments
(amortized cost
$154,411,220; cost
$157,064,943;
$89,017,650 and
$41,739,167,
respectively)........ 154,411,220 211,263,976 88,485,027 41,809,931
Cash...................... -- 192,655 46,255 23,050
Interest and dividends
receivable............... 118,976 322,340 1,248,852 649,603
Receivable from brokers
for investments sold..... -- 445,520 -- --
Receivable for capital
shares issued............ -- 44,756 1,500 --
Prepaid expenses.......... 10,405 11,712 5,539 3,289
------------ ------------ ----------- -----------
Total Assets.......... 154,540,601 212,280,959 89,787,173 42,485,873
------------ ------------ ----------- -----------
LIABILITIES:
Dividends payable......... 601,712 -- -- --
Payable to brokers for
investments purchased.... -- 1,096,490 4,923,125 --
Accrued expenses and other
payables:
Investment advisory
fees................... 54,286 133,360 43,174 20,987
Administration fees..... 7,634 10,419 4,176 2,093
Administrative services
fees................... -- 44,453 17,989 8,745
Accounting and transfer
agent fees............. 10,859 9,919 12,977 10,356
Legal and audit fees.... 23,596 28,011 12,825 5,826
Other................... 6,724 8,571 21,339 1,910
------------ ------------ ----------- -----------
Total Liabilities..... 704,811 1,331,223 5,035,605 49,917
------------ ------------ ----------- -----------
NET ASSETS:
Capital................... 153,853,494 153,592,918 87,290,632 42,483,364
Undistributed net
investment income........ -- 24,496 10,626 20,540
Net unrealized
appreciation
(depreciation) on
investments.............. -- 54,199,033 (532,623) 70,764
Accumulated undistributed
net realized gains
(losses) on investment
transactions............. (17,704) 3,133,289 (2,017,067) (138,712)
------------ ------------ ----------- -----------
Net Assets............ $153,835,790 $210,949,736 $84,751,568 $42,435,956
============ ============ =========== ===========
Outstanding units of
beneficial interest
(shares)................. 153,853,494 14,564,208 8,535,610 4,133,363
============ ============ =========== ===========
Net asset value--offering
and redemption price per
share.................... $ 1.00 $ 14.48 $ 9.93 $ 10.27
============ ============ =========== ===========
</TABLE>
See notes to financial statements.
-12-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1996
<TABLE>
<CAPTION>
AGGRESSIVE
BALANCED FIXED TOTAL GROWTH
FUND RETURN FUND FUND
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost $12,586,010;
$42,570,981 and $21,756,961,
respectively)........................... $13,856,645 $42,131,801 $23,308,194
Cash..................................... 85,501 512,897 --
Interest and dividends receivable........ 77,240 542,530 32,288
Receivable for capital shares issued..... 3,972 300 5,634
Unamortized organization costs........... 3,411 3,613 5,136
Prepaid expenses......................... 689 1,785 715
----------- ----------- -----------
Total Assets......................... 14,027,458 43,192,926 23,351,967
----------- ----------- -----------
LIABILITIES:
Payable to brokers for investments pur-
chased.................................. 487,187 1,948,750 --
Accrued expenses and other payables:
Investment advisory fees............... 8,562 26,119 18,425
Administration fees.................... 666 2,016 1,149
Administrative services fees........... 2,854 8,706 4,849
Accounting and transfer agent fees..... 2,591 4,105 2,750
Legal and audit fees................... 4,270 6,811 4,007
Other.................................. 5,315 18,025 2,057
----------- ----------- -----------
Total Liabilities.................... 511,445 2,014,532 33,237
----------- ----------- -----------
NET ASSETS:
Capital.................................. 11,719,553 41,617,215 21,793,756
Undistributed net investment income
(loss).................................. 3,947 31,047 (743)
Net unrealized appreciation (deprecia-
tion) on investments.................... 1,270,635 (439,180) 1,551,233
Accumulated undistributed net realized
gains (losses) on investment
transactions............................ 521,878 (30,688) (25,516)
----------- ----------- -----------
Net Assets........................... $13,516,013 $41,178,394 $23,318,730
=========== =========== ===========
Outstanding units of beneficial interest
(shares)................................ 1,219,332 4,161,918 2,144,028
=========== =========== ===========
Net asset value--offering and redemption
price per share......................... $ 11.08 $ 9.89 $ 10.88
=========== =========== ===========
</TABLE>
See notes to financial statements.
-13-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
U.S.
GOVERNMENT FIXED INTERMEDIATE
OBLIGATIONS EQUITY INCOME TAX-FREE
FUND FUND FUND FUND
----------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............... $7,897,040 $ -- $5,183,533 $1,730,279
Dividend income............... -- 3,635,692 113,063 23,115
---------- ----------- ---------- ----------
Total Income................ 7,897,040 3,635,692 5,296,596 1,753,394
---------- ----------- ---------- ----------
EXPENSES:
Investment advisory fees...... 561,461 1,328,833 471,823 211,991
Administration fees........... 280,842 354,359 157,275 70,638
Administrative services fees.. -- 44,453 17,989 8,745
Accounting fees............... 43,388 57,104 32,378 23,797
Custodian fees................ 14,991 20,884 9,935 4,836
Legal and audit fees.......... 28,834 34,432 14,949 6,523
Trustees' fees and expenses... 6,443 7,676 3,463 1,578
Transfer agent fees........... 49,333 59,625 38,178 26,543
Registration and filing fees.. 12,482 5,073 2,503 1,403
Printing costs................ 13,059 16,741 7,222 3,434
Other......................... 6,588 8,222 5,101 1,748
Expenses voluntarily reduced.. (253,524) -- -- (95,510)
---------- ----------- ---------- ----------
Total Expenses.............. 763,897 1,937,402 760,816 265,726
---------- ----------- ---------- ----------
Net Investment Income......... 7,133,143 1,698,290 4,535,780 1,487,668
---------- ----------- ---------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses)
from investment transactions. 77,670 7,593,903 (462,154) (5,701)
Change in unrealized apprecia-
tion from investments........ -- 36,320,821 2,772,427 844,066
---------- ----------- ---------- ----------
Net realized/unrealized gains
from investments............. 77,670 43,914,724 2,310,273 838,365
---------- ----------- ---------- ----------
Change in net assets resulting
from operations.............. $7,210,813 $45,613,014 $6,846,053 $2,326,033
========== =========== ========== ==========
</TABLE>
See notes to financial statements.
-14-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FIXED AGGRESSIVE
BALANCED TOTAL RETURN GROWTH
FUND (A) FUND (B) FUND (C)
---------- ------------ ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income............................. $ 359,192 $2,140,819 $ 33,659
Dividend income............................. 181,644 63,190 109,594
---------- ---------- ----------
Total Income.............................. 540,836 2,204,009 143,253
---------- ---------- ----------
EXPENSES:
Investment advisory fees.................... 101,842 243,794 81,829
Administration fees......................... 27,159 65,678 17,227
Administrative services fees................ 2,854 8,706 4,849
Accounting fees............................. 6,680 13,276 4,212
Custodian fees.............................. 4,158 7,011 3,476
Legal and audit fees........................ 5,048 8,718 4,312
Organization costs.......................... 6,232 6,029 3,740
Trustees' fees and expenses................. 742 1,825 400
Transfer agent fees......................... 16,560 18,425 9,816
Registration and filing fees................ 5,756 9,262 5,770
Printing costs.............................. 2,131 5,246 872
Other....................................... 159 273 --
---------- ---------- ----------
Total Expenses............................ 179,321 388,243 136,503
---------- ---------- ----------
Net Investment Income....................... 361,515 1,815,766 6,750
---------- ---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains from investment transac-
tions...................................... 521,878 30,904 10,757
Change in unrealized appreciation (deprecia-
tion) from investments..................... 1,270,635 (439,180) 1,551,233
---------- ---------- ----------
Net realized/unrealized gains (losses) from
investments................................ 1,792,513 (408,276) 1,561,990
---------- ---------- ----------
Change in net assets resulting from opera-
tions...................................... $2,154,028 $1,407,490 $1,568,740
========== ========== ==========
</TABLE>
- ------
(a) For the period from June 1, 1995 (commencement of operations) through March
31, 1996.
(b) For the period from June 15, 1995 (commencement of operations) through
March 31, 1996.
(c) For the period from October 2, 1995 (commencement of operations) through
March 31, 1996.
See notes to financial statements.
-15-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S.
GOVERNMENT
OBLIGATIONS EQUITY
FUND FUND
---------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1996 1995 1996 1995
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.. $ 7,133,143 $ 4,865,461 $ 1,698,290 $ 2,007,045
Net realized gains
(losses) from invest-
ment transactions..... 77,670 3,258 7,593,903 (916,864)
Net change in
unrealized
appreciation from
investments........... -- -- 36,320,821 18,869,138
------------- ------------- ------------ ------------
Change in net assets
resulting from
operations............. 7,210,813 4,868,719 45,613,014 19,959,319
------------- ------------- ------------ ------------
DISTRIBUTIONS TO SHARE-
HOLDERS:
From net investment in-
come.................. (7,133,143) (4,865,461) (1,735,147) (1,999,364)
From net realized gains
from investment trans-
actions............... -- -- (3,191,515) (314,263)
------------- ------------- ------------ ------------
Change in net assets
from shareholder
distributions.......... (7,133,143) (4,865,461) (4,926,662) (2,313,627)
------------- ------------- ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 473,468,676 352,737,311 60,312,936 35,801,655
Dividends reinvested... 411,236 40,886 3,115,399 1,582,109
Cost of shares re-
deemed................ (458,009,749) (320,238,726) (42,397,835) (30,999,671)
------------- ------------- ------------ ------------
Change in net assets
from share
transactions........... 15,870,163 32,539,471 21,030,500 6,384,093
------------- ------------- ------------ ------------
Change in net assets.... 15,947,833 32,542,729 61,716,852 24,029,785
NET ASSETS:
Beginning of period.... 137,887,957 105,345,228 149,232,884 125,203,099
------------- ------------- ------------ ------------
End of period.......... $ 153,835,790 $ 137,887,957 $210,949,736 $149,232,884
============= ============= ============ ============
SHARE TRANSACTIONS:
Issued................. 473,468,676 352,737,311 4,484,471 3,407,334
Reinvested............. 411,236 40,886 229,751 150,261
Redeemed............... (458,009,749) (320,238,726) (3,200,256) (2,960,143)
------------- ------------- ------------ ------------
Change in shares........ 15,870,163 32,539,471 1,513,966 597,452
============= ============= ============ ============
</TABLE>
See notes to financial statements.
-16-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE
FIXED INCOME FUND FUND
-------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1996 1995 1996 1995
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 4,535,780 $ 4,787,012 $ 1,487,668 $ 1,382,782
Net realized losses
from investment
transactions.......... (462,154) (1,431,225) (5,701) (133,011)
Net change in
unrealized
appreciation
(depreciation) from
investments........... 2,772,427 (761,757) 844,066 283,619
------------ ------------ ----------- ------------
Change in net assets
resulting from
operations............. 6,846,053 2,594,030 2,326,033 1,533,390
------------ ------------ ----------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment in-
come.................. (4,616,883) (4,787,657) (1,492,074) (1,383,792)
From net realized gains
from investment
transactions.......... -- -- -- (33,054)
------------ ------------ ----------- ------------
Change in net assets
from shareholder
distributions.......... (4,616,883) (4,787,657) (1,492,074) (1,416,846)
------------ ------------ ----------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 59,265,122 17,756,160 15,884,880 7,605,805
Dividends reinvested... 880,889 2,508,246 203,508 165,861
Cost of shares re-
deemed................ (59,296,543) (26,699,222) (5,203,326) (10,153,994)
------------ ------------ ----------- ------------
Change in net assets
from share
transactions........... 849,468 (6,434,816) 10,885,062 (2,382,328)
------------ ------------ ----------- ------------
Change in net assets.... 3,078,638 (8,628,443) 11,719,021 (2,265,784)
NET ASSETS:
Beginning of period.... 81,672,930 90,301,373 30,716,935 32,982,719
------------ ------------ ----------- ------------
End of period.......... $ 84,751,568 $ 81,672,930 $42,435,956 $ 30,716,935
============ ============ =========== ============
SHARE TRANSACTIONS:
Issued................. 5,921,879 1,839,047 1,538,333 778,541
Reinvested............. 88,245 260,654 19,753 16,973
Redeemed............... (5,888,472) (2,789,367) (506,382) (1,042,386)
------------ ------------ ----------- ------------
Change in shares........ 121,652 (689,666) 1,051,704 (246,872)
============ ============ =========== ============
</TABLE>
See notes to financial statements.
-17-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FIXED AGGRESSIVE
BALANCED TOTAL RETURN GROWTH
FUND (A) FUND (B) FUND (C)
----------- ------------ -----------
<S> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income................. $ 361,515 $ 1,815,766 $ 6,750
Net realized gains from investment
transactions......................... 521,878 30,904 10,757
Net change in unrealized appreciation
(depreciation) from investments...... 1,270,635 (439,180) 1,551,233
----------- ------------ -----------
Change in net assets resulting from
operations............................ 2,154,028 1,407,490 1,568,740
----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ (357,568) (1,784,719) (7,493)
From net realized gains from
investment transactions.............. -- (61,592) (36,273)
----------- ------------ -----------
Change in net assets from shareholder
distributions......................... (357,568) (1,846,311) (43,766)
----------- ------------ -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued........... 19,462,841 51,163,546 22,338,076
Dividends reinvested.................. 353,573 1,779,986 5,263
Cost of shares redeemed............... (8,096,861) (11,326,317) (549,583)
----------- ------------ -----------
Change in net assets from share
transactions.......................... 11,719,553 41,617,215 21,793,756
----------- ------------ -----------
Change in net assets................... 13,516,013 41,178,394 23,318,730
NET ASSETS:
Beginning of period................... -- -- --
----------- ------------ -----------
End of period......................... $13,516,013 $ 41,178,394 $23,318,730
=========== ============ ===========
SHARE TRANSACTIONS:
Issued................................ 1,918,288 5,099,717 2,196,534
Reinvested............................ 32,858 177,723 515
Redeemed.............................. (731,814) (1,115,522) (53,021)
----------- ------------ -----------
Change in shares....................... 1,219,332 4,161,918 2,144,028
=========== ============ ===========
</TABLE>
- ------
(a) For the period from June 1, 1995 (commencement of operations) through March
31, 1996.
(b) For the period from June 15, 1995 (commencement of operations) through
March 31, 1996.
(c) For the period from October 2, 1995 (commencement of operations) through
March 31, 1996.
See notes to financial statements.
-18-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE U.S. GOVERNMENT OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
See notes to financial statements.
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ----------------------------------------------------- ------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES (14.3%):
Federal Farm Credit Bank:
10,000,000 5.37%, 4/2/96........................................ $ 9,998,533
2,000,000 4.95%*, 4/29/96...................................... 2,000,000
5,000,000 5.19%*, 6/1/96....................................... 5,000,000
Student Loan Marketing Assoc.:
5,000,000 5.27%*, 4/2/96....................................... 4,999,338
------------
Total U.S. Government Agencies 21,997,871
------------
U.S. TREASURY BILLS (45.0%):
15,000,000 4.99%, 4/11/96....................................... 14,979,583
15,000,000 5.15%, 5/30/96....................................... 14,879,665
15,000,000 5.02%, 6/13/96....................................... 14,852,479
15,000,000 4.96%, 8/1/96........................................ 14,758,033
10,000,000 4.93%, 10/17/96...................................... 9,739,089
------------
Total U.S. Treasury Bills 69,208,849
------------
Total Investments, at value 91,206,720
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ---------------------------------------------------- ------------
<S> <C> <C>
REPURCHASE AGREEMENTS (41.1%):
28,204,500 Bear Stearns,
5.33%, 4/1/96 (Collateralized by $106,141,000 U.S.
Treasury Strips, 2/15/99-11/15/22
market value--$28,797,268)......................... $ 28,204,500
35,000,000 Merrill Lynch,
5.30%*, 4/1/96 (Collateralized by $180,586,000 U.S.
Treasury Strips, 5/15/18- 5/15/19
market value--$35,700,963)......................... 35,000,000
------------
Total Repurchase Agreements 63,204,500
------------
Total (Cost--$154,411,220)(a) $154,411,220
============
</TABLE>
- ------
Percentages indicated are based on net assets of $153,835,790.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate security. Interest rate is as of March 31, 1996. Maturity date
reflects the next rate change date.
-19-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
Continued
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ --------------------------------------------------------- ------------
<S> <C> <C>
COMMON STOCKS (99.5%):
Automotive (1.7%):
50,000 Ford Motor Co. .......................................... $ 1,718,750
35,000 General Motors Corp. .................................... 1,863,750
------------
3,582,500
------------
Banking (7.2%):
40,000 BankAmerica Corp. ....................................... 3,100,000
35,000 Barnett Banks, Inc. ..................................... 2,178,750
30,000 Fifth Third Bancorp...................................... 1,740,000
40,000 NationsBank Corp. ....................................... 3,205,000
50,000 Norwest Corp. ........................................... 1,837,500
30,000 Wachovia Corp. .......................................... 1,342,500
7,000 Wells Fargo & Co. ....................................... 1,827,000
------------
15,230,750
------------
Chemicals (4.1%):
45,000 Air Products & Chemical.................................. 2,458,125
45,000 Eastman Chemical Co. .................................... 3,110,625
20,000 Monsanto Co. ............................................ 3,070,000
------------
8,638,750
------------
Computer Hardware (4.8%):
40,000 Cabletron Systems (b).................................... 2,650,000
70,000 Cisco Systems, Inc. (b).................................. 3,246,250
40,000 Intel Corp. ............................................. 2,275,000
75,000 Silicon Graphics, Inc. (b)............................... 1,875,000
------------
10,046,250
------------
Computer Software (1.5%):
20,000 Microsoft Corp. (b)...................................... 2,062,500
25,000 Oracle Corp. (b)......................................... 1,178,125
------------
3,240,625
------------
Consumer Goods & Services (5.4%):
30,000 Colgate Palmolive Co. ................................... 2,336,250
50,000 CUC International, Inc. (b).............................. 1,462,500
60,000 Gillette Co. ............................................ 3,105,000
20,000 Kimberly Clark........................................... 1,490,000
35,000 Procter & Gamble Co. .................................... 2,966,250
------------
11,360,000
------------
Containers & Packaging (0.8%):
30,000 Avery Dennison Corp. .................................... 1,620,000
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ --------------------------------------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Defense (1.8%):
41,000 Raytheon Co. ............................................ $ 2,101,250
30,000 Rockwell International................................... 1,766,250
------------
3,867,500
------------
Diversified (2.6%):
45,000 Allied Signal, Inc. ..................................... 2,660,625
35,000 Textron, Inc. ........................................... 2,800,000
------------
5,460,625
------------
Electrical & Electronic (7.5%):
40,000 Amphenol Corp--Class A (b)............................... 935,000
55,000 Avnet, Inc. ............................................. 2,653,750
55,000 Compaq Computer Corp. (b)................................ 2,124,375
36,000 Emerson Electric Co. .................................... 2,907,000
55,000 General Electric Co. .................................... 4,283,125
60,000 Varian Associates, Inc. ................................. 2,992,500
------------
15,895,750
------------
Entertainment (3.0%):
60,000 Viacom, Inc.--Class B (b)................................ 2,527,500
60,000 Walt Disney Co. ......................................... 3,832,500
------------
6,360,000
------------
Financial Services (3.9%):
34,000 Federal Home Loan Mortgage Corp. ........................ 2,898,500
80,000 Federal National Mortgage Assoc. ........................ 2,550,000
40,000 Household International.................................. 2,690,000
------------
8,138,500
------------
Food Products & Services (3.7%):
15,000 Coca-Cola Co. ........................................... 1,239,375
50,000 ConAgra, Inc. ........................................... 2,031,250
50,000 McDonald's Corp. ........................................ 2,400,000
35,000 PepsiCo, Inc. ........................................... 2,213,750
------------
7,884,375
------------
Health Care (4.8%):
50,000 Abbott Labs.............................................. 2,037,500
60,000 Baxter International, Inc. .............................. 2,715,000
25,000 Bristol-Myers Squibb Co. ................................ 2,140,625
35,000 Johnson & Johnson........................................ 3,228,750
------------
10,121,875
------------
Home Furnishings (0.8%):
60,000 Newell Companies, Inc. .................................. 1,605,000
------------
</TABLE>
-20-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
Continued
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ --------------------------------------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Insurance (3.9%):
30,000 American International Group............................. $ 2,808,750
18,000 Chubb Corp. ............................................. 1,689,750
13,000 General Re Corp. ........................................ 1,894,750
14,000 Marsh & McLennan......................................... 1,300,250
40,000 USF & G Corp. ........................................... 620,000
------------
8,313,500
------------
Machinery & Equipment (1.0%):
52,000 Sundstrand Corp. ........................................ 2,119,000
------------
Manufacturing-Consumer Goods (0.7%):
50,000 U.S. Filter Corp. (b).................................... 1,400,000
------------
Medical Equipment & Supplies (3.8%):
35,000 Amgen, Inc. (b).......................................... 2,034,375
75,000 Caremark International, Inc. ............................ 1,884,375
70,000 Medtronic, Inc. ......................................... 4,173,750
------------
8,092,500
------------
Office Equipment & Services (4.0%):
50,000 Hewlett-Packard.......................................... 4,700,000
31,000 Honeywell, Inc. ......................................... 1,712,750
30,000 Reuters Holding PLC-ADR.................................. 1,953,750
------------
8,366,500
------------
Oil & Gas Exploration Products & Services (3.7%):
20,000 Amoco Corp. ............................................. 1,445,000
25,000 Anadarko Petroleum Corp. ................................ 1,387,500
8,000 Atlantic Richfield Co. .................................. 952,000
15,000 Exxon Corp. ............................................. 1,224,375
10,000 Mobil Corp. ............................................. 1,158,750
20,000 Schlumberger Ltd. ....................................... 1,582,500
------------
7,750,125
------------
Pharmaceuticals (6.9%):
28,000 American Home Products................................... 3,034,500
40,000 Eli Lilly & Co. ......................................... 2,600,000
40,000 Merck & Company, Inc. ................................... 2,490,000
50,000 Pfizer, Inc. ............................................ 3,350,000
30,000 Warner Lambert Co. ...................................... 3,097,500
------------
14,572,000
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ --------------------------------------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Photography (1.9%):
55,000 Eastman Kodak Co. ....................................... $ 3,905,000
------------
Printing & Publishing (3.3%):
22,000 Gannett, Inc. ........................................... 1,479,500
40,000 R.R. Donnelley Co. ...................................... 1,380,000
60,000 Time Warner, Inc. ....................................... 2,452,500
25,000 Tribune Co. ............................................. 1,646,875
------------
6,958,875
------------
Retail Stores (5.1%):
60,000 Barnes & Noble (b)....................................... 2,085,000
48,000 Home Depot, Inc. ........................................ 2,298,000
45,000 Lowe's Companies......................................... 1,608,750
35,000 May Department Stores.................................... 1,688,750
70,000 Office Depot, Inc. (b)................................... 1,373,750
50,000 Walgreen Co. ............................................ 1,631,250
------------
10,685,500
------------
Technology (5.3%):
14,000 International Business Machines.......................... 1,555,750
24,000 Minnesota Mining & Manufacturing Co. .................... 1,557,000
70,000 Motorola, Inc. .......................................... 3,710,000
50,000 Texas Instruments, Inc. ................................. 2,543,750
60,000 Xilinx, Inc. (b)......................................... 1,905,000
------------
11,271,500
------------
Telecommunications (5.5%):
30,000 Ameritech Corp. ......................................... 1,635,000
60,000 AT&T Corp. .............................................. 3,675,000
44,000 Bell South Corp. ........................................ 1,628,000
60,000 GTE Corp. ............................................... 2,632,500
40,000 SBC Communications, Inc. ................................ 2,105,000
------------
11,675,500
------------
Tire & Rubber (0.8%):
32,000 Goodyear Tire & Rubber Co. .............................. 1,632,000
------------
Total Common Stocks 209,794,500
------------
</TABLE>
-21-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
See notes to financial statements.
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<S> <C> <C>
INVESTMENT COMPANIES (0.7%):
1,469,476 AMCORE Vintage U.S. Government Obligations Fund....... $ 1,469,476
------------
Total Investment Companies 1,469,476
------------
Total (Cost--$157,064,943) (a) $211,263,976
============
</TABLE>
- ------
Percentages indicated are based on net assets of $210,949,736.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................. $56,651,764
Unrealized deprecia-
tion................. (2,452,731)
-----------
Net unrealized appre-
ciation.............. $54,199,033
===========
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt.
PLC--Public Liability Company.
-22-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ---------------------------------------------- -------------
COLLATERALIZED MORTGAGE OBLIGATIONS (17.6%):
<S> <C> <C>
Federal Home Loan Mortgage Corp:
2,000,000 6.25%, 12/15/06........................ $ 1,923,125
3,000,456 6.50%, 10/15/21........................ 2,962,013
Federal National Mortgage Assoc.:
287,512 7.00%, 1/25/04......................... 286,802
3,500,000 7.00%, 8/25/06......................... 3,506,720
1,000,000 6.60%, 4/25/17......................... 994,920
2,000,000 6.50%, 3/25/20......................... 1,940,200
G.E. Capital:
3,000,000 7.00% (b) ............................. 2,914,687
Resolution Trust Corp.:
422,668 7.43%*, 4/25/96........................ 424,650
-----------
Total Collateralized
Mortgage Obligations 14,953,117
-----------
CORPORATE BONDS (30.4%):
Banking (8.4%):
1,000,000 BankAmerica Corp., 7.20%, 9/15/02................. 1,020,000
500,000 Bankers Trust, 8.13%, 5/15/02..................... 530,000
1,000,000 Bank One, Dayton, N.A., 6.63%, 4/15/03............ 991,250
500,000 Chase Manhattan Corp., 8.80%, 2/1/00.............. 511,875
500,000 Chase Manhattan Corp., 9.05%, 2/1/02.............. 510,000
1,500,000 Citicorp Senior Notes, 8.63%, 11/1/04,
callable 11/1/99 @ 100.......................... 1,593,750
1,000,000 NationsBank Corp., 6.63%, 1/15/98................. 1,008,750
500,000 NationsBank Corp., 6.50%, 8/15/03................. 485,625
500,000 Northern Trust Co., 6.50%, 5/1/03................. 492,500
-----------
7,143,750
-----------
Beverages (0.6%):
500,000 PepsiCo, Inc., 7.88%, 8/15/96.. 503,750
-----------
Electric Utilities (2.1%):
250,000 Central Power and Light Co., 6.63%, 1/1/98........ 251,250
1,000,000 Florida Power & Light, 6.88%, 4/1/04,
callable 4/1/98 @ 102........................... 1,012,500
250,000 Houston Light & Power Co., 6.75%, 4/1/98.......... 250,625
250,000 Sierra Pacific Power Co., 6.50%, 7/1/97........... 250,625
-----------
1,765,000
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ----------------------------------------------- -------------
CORPORATE BONDS CONTINUED:
<S> <C> <C>
Financial Services (11.1%):
1,000,000 Associates Corp., 7.50%, 4/15/02.................. $ 1,040,000
1,000,000 Commercial Credit Corp., 6.88%, 5/1/02............ 1,006,250
1,000,000 Ford Motor Credit Corp., 6.85%, 8/15/00........... 1,010,000
500,000 Ford Motor Credit Corp., 7.50%, 1/27/03........... 515,625
500,000 Household Finance Corp., 7.63%, 12/15/96.......... 506,410
1,000,000 Household Finance Corp., 6.88%, 3/1/03............ 1,007,500
250,000 ITT Financial Corp., 7.25%, 11/15/96.............. 252,500
1,000,000 Norwest Financial, Inc., 7.50%, 4/15/05........... 1,042,500
1,000,000 Smith Barney, 6.88%, 6/15/05...................... 986,250
2,000,000 Standard Credit Card Master Trust, 95-8A, 6.70%,
9/7/00, callable 9/7/98 @ 100................ 2,032,800
-----------
9,399,835
-----------
Home Furnishings (1.2%):
1,000,000 Newell Co., 6.40%, 6/10/02........................ 983,750
-----------
Industrial Goods & Services (1.5%):
1,000,000 E.I. Dupont de Nemours & Co., 6.42%, 11/20/97..... 1,005,000
250,000 E.I. Dupont de Nemours & Co., 8.65%, 12/1/97...... 259,687
-----------
1,264,687
-----------
Manufacturing--Consumer Goods (0.2%):
150,000 Corning Glass Works, 8.38%, 11/1/96............... 152,250
-----------
Restaurants (0.3%):
233,333 Secured Restaurant Trust, 10.25%, 11/15/00........ 259,875
-----------
Retail Stores (1.8%):
1,000,000 Sears Roebuck & Co., 7.60%, 3/5/97................ 1,013,750
500,000 Sears Roebuck & Co., 8.02%, 12/28/98.............. 523,125
-----------
1,536,875
-----------
</TABLE>
-23-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------- -----------
<S> <C>
CORPORATE BONDS, CONTINUED: Utilities--Telecommunications (3.2%):
250,000 AT&T Corp., 8.20% 2/15/05, callable 2/15/00 @ 100........... $ 260,312
1,000,000 GTE Florida, Inc., 6.25%, 11/15/05.......................... 952,500
500,000 Hawaiian Telephone, 8.00%, 9/1/01........................... 508,125
1,000,000 United Telephone Co. of Florida, 7.25%, 12/15/04............ 1,023,750
-----------
2,744,687
-----------
Total Corporate Bonds 25,754,459
-----------
U.S. GOVERNMENT AGENCIES (17.2%):
Federal Home Loan Bank:
500,000 8.05%, 5/27/04.............................................. 508,810
1,000,000 8.35%, 4/12/05, callable 4/12/96 @ 100...................... 1,001,020
Federal Home Loan Mortgage Corp.:
1,250,000 6.59%, 6/4/03, callable 6/4/96 @ 100........................ 1,250,150
1,250,000 7.05%, 3/24/04, callable 3/24/97 @ 100...................... 1,251,237
500,000 8.05%, 5/19/04, callable 5/19/97 @ 100...................... 508,540
Federal National Mortgage Assoc.:
2,000,000 6.57%, 8/10/00, callable 8/10/98 @ 100...................... 2,012,740
1,500,000 6.95%, 9/10/02, callable 9/10/97 @ 100...................... 1,511,100
2,000,000 6.83%, 4/2/03, callable 4/2/99 @ 100........................ 1,984,340
1,000,000 8.00%, 4/13/05, callable 4/13/98 @ 100...................... 1,028,280
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------- -----------
<S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal National Mortgage Assoc., continued
2,500,000 7.41%, 8/17/05, callable 8/17/98 @ 100...................... $ 2,530,475
1,000,000 6.49%, 1/19/06, callable 1/19/01 @ 100...................... 956,740
-----------
Total U.S. Government Agencies 14,543,432
-----------
U.S. TREASURY NOTES (30.3%):
2,000,000 7.25%, 11/30/96............................................. 2,022,800
1,500,000 6.38%, 6/30/97.............................................. 1,513,830
1,500,000 7.88%, 1/15/98.............................................. 1,552,455
1,000,000 7.13%, 10/15/98............................................. 1,028,680
3,000,000 6.75%, 6/30/99.............................................. 3,065,070
3,500,000 6.38%, 1/15/00.............................................. 3,537,555
2,000,000 6.13%, 9/30/00.............................................. 1,999,140
1,000,000 5.25%, 1/31/01.............................................. 964,950
1,000,000 7.50%, 5/15/02.............................................. 1,064,650
2,000,000 6.38%, 8/15/02.............................................. 2,011,500
5,000,000 6.25%, 2/15/03.............................................. 4,985,300
1,000,000 5.88%, 11/15/05............................................. 963,370
1,000,000 5.63%, 2/15/06.............................................. 948,800
-----------
Total U.S. Treasury Notes 25,658,100
-----------
INVESTMENT COMPANIES (8.9%):
2,635,877 AMCORE Vintage U.S. Government Obligations Fund............. 2,635,877
4,940,042 Prairie Cash Management Fund................................ 4,940,042
-----------
Total Investment Companies 7,575,919
-----------
Total (Cost--$89,017,650)(a)........................................ $88,485,027
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $84,751,568.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 382,200
Unrealized depreciation............................................. (914,823)
---------
Net unrealized depreciation......................................... $(532,623)
=========
</TABLE>
(b) When--issued security.
* Variable rate security. Interest rate is as of March 31, 1996. Maturity date
reflects the next rate change date.
-24-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<S> <C> <C>
MUNICIPAL BONDS (96.6%):
Alabama (0.6%):
270,000 Montgomery, 5.10%, 11/1/07, callable 5/1/03 @102...... $ 266,341
-----------
Alaska (0.9%):
400,000 Alaska Student Loan Corp. Revenue Bonds, 5.13%,
7/1/02............................................... 399,440
-----------
California (1.2%):
500,000 Sacramento City Financing Authority, Lease Revenue
Refunding-Series A, AMBAC Indemnity Corporation,
5.05%, 11/1/06....................................... 498,355
-----------
Delaware (1.2%):
500,000 Sussex County, 4.90%, 10/15/01, callable 4/15/00 @
101.................................................. 507,010
-----------
Florida (5.3%):
500,000 Florida School Boards Assoc., Lease Revenue, 6.75%,
7/1/04, callable 7/1/00 @ 100........................ 529,000
250,000 Jacksonville, Electric Authority Revenue, 5.40%,
10/1/10, callable 10/1/02 @ 101 and 10/1/03 @ 100.... 247,573
500,000 Jacksonville, Electric Authority Revenue, Refunding,
Saint Johns River, Issue 2, Series 8, 5.13%, 10/1/07,
callable 10/1/02 @ 101 and 10/1/03 @ 100............. 496,355
500,000 Martin County, Florida, GO, 4.25%, 2/1/01............. 491,185
500,000 State of Florida Board of Education, 5.13%, 6/1/05.... 505,985
-----------
2,270,098
-----------
Georgia (1.2%):
500,000 Atlanta Revenue Bonds, 5.75%, 1/1/08.................. 508,915
-----------
Idaho (1.2%):
500,000 Meridian Joint School District #2, Idaho, 5.00%,
7/30/03.............................................. 507,635
-----------
Illinois (25.4%):
200,000 Cherry Valley GO, 6.60%, 1/1/01....................... 215,654
500,000 Chicago Metropolitan Water Capital Improvement, 5.00%,
12/1/02.............................................. 507,900
500,000 Chicago Metropolitan Water Capital Improvement, 5.25%,
12/1/04.............................................. 511,500
500,000 Chicago O'Hare International Airport, 6.38%, 1/1/04,
callable 1/1/02 @ 102 and 1/1/03 @ 101............... 536,810
200,000 Chicago Water Revenue, AMBAC Indemnity Corporation,
5.50%, 11/1/03....................................... 207,392
250,000 Cook County Community School GO, 5.90%, 12/1/03....... 266,762
300,000 Du Page, Illinois Airport Authority, Limited Tax Ins.
Certificate of Participation, Series A, FGIC, 4.80%,
2/1/01............................................... 301,137
300,000 Illinois Development Finance Authority Revenue, FGIC,
5.45%, 2/1/02........................................ 311,973
200,000 Illinois Development Finance Authority Revenue, FGIC,
6.05%, 3/1/04........................................ 215,350
510,000 Illinois Development Finance Authority Revenue,
(Belvidere) GO, 4.65%, 12/1/03....................... 501,830
500,000 Illinois Development Finance Authority Revenue, S.D.
46, 5.25%, 1/1/06.................................... 505,285
500,000 Illinois Development Finance Authority Revenue,
Wheaton School 200, 4.75%, 12/1/02................... 501,105
400,000 Illinois Health Facilities Authority Revenue, MBIA,
4.90%, 11/15/03...................................... 399,324
500,000 Illinois Housing Development Authority, 5.10%, 7/1/02. 500,065
465,000 Illinois Housing Development Authority, Single Family
Mortgage Revenue, 6.50%, 2/1/09...................... 487,441
220,000 Illinois State Sales Tax Revenue, Series Q, 5.75%,
6/15/14.............................................. 214,647
200,000 Illinois Student Assistance Commission, Student Loan
Revenue, GSL, 5.45%, 3/1/99.......................... 204,208
</TABLE>
-25-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
Illinois, continued:
300,000 Illinois Student Assistance Commission, Student Loan
Revenue, Series M, 6.30%, 3/1/03..................... $ 309,987
500,000 Kane County Motor Fuel Tax Revenue, 5.40%, 3/1/06,
callable 3/1/01 @ 102.5.............................. 502,340
500,000 Kane County Public Building C, Elgin Community College
509-B, 5.75%, 12/1/10................................ 505,215
500,000 Lake Forest, Community High School District 115,
4.70%, 11/1/05, callable 11/1/01 @ 100............... 487,030
300,000 Metropolitan Pier & Exposition Authority, State Tax
Revenue, 5.20%, 6/15/99.............................. 306,102
500,000 Northwest Water Community Cook & Lake Counties, Water
Revenue, 4.90%, 5/1/07............................... 478,115
400,000 Sangamon County, Certificate of Participation, 6.40%,
12/1/00.............................................. 426,988
250,000 State Of Illinois, GO, 4.90%, 6/1/01.................. 252,142
250,000 State Of Illinois, GO, 5.00%, 6/1/02.................. 252,495
100,000 Sterling Hospital Revenue, CGH Medical Center Project,
5.65%, 5/1/99........................................ 101,634
250,000 Winnebago County, School District 122, FGIC, 5.75%,
6/1/01............................................... 263,670
500,000 Winnebago & Boone Counties, Rockford School District
Number 205, School Bonds, Series 1992 C, 5.25%,
2/1/01............................................... 513,705
-----------
10,787,806
-----------
Indiana (1.8%):
500,000 Indiana Bond Bank (Elkhart Water/Sewer Refunding
Bonds), 5.55%, 11/1/10, callable 11/1/04 @ 102....... 480,645
250,000 Indianapolis, Series A, 6.75%, 2/1/04................. 269,680
-----------
750,325
-----------
Iowa (5.0%):
300,000 Ames, Iowa Electric Revenue, 5.20%, 1/1/05, callable
1/1/02 @ 100......................................... 302,496
500,000 Iowa City GO, 5.00%, 6/1/04, callable 6/1/02 @ 100.... 506,055
500,000 Iowa State Certificate of Participation, 6.50%,
7/1/06, callable 7/1/02 @ 102 and 7/1/04 @ 100....... 545,465
500,000 Iowa Student Loan, 5.75%, 12/1/06..................... 495,245
250,000 Iowa Student Loan Liquidity Corp., Series A, 5.35%,
12/1/02.............................................. 254,753
-----------
2,104,014
-----------
Maryland (0.6%):
250,000 Baltimore, Construction Public Improvement, Series A,
AMBAC Indemnity Corporation, 5.30%, 10/15/07,
callable 10/15/03 @ Par.............................. 250,208
-----------
Massachusetts (2.3%):
500,000 Massachusetts Bay Transportation Authority, 5.30%,
3/1/08, callable 3/1/06 @ 101........................ 495,190
500,000 Massachusetts Education Loan Authority, 5.60%, 7/1/06,
callable 7/1/05 @ 102................................ 500,725
-----------
995,915
-----------
Michigan (1.8%):
250,000 Grand Haven, Insured Electric Revenue Bonds, MBIA,
4.90%, 7/1/03........................................ 251,345
500,000 Kent County, Michigan Building Authority, 4.80%,
12/1/04.............................................. 498,145
-----------
749,490
-----------
</TABLE>
-26-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
Minnesota (3.7%):
500,000 Minneapolis, 4.75%, 9/1/02............................ $ 505,220
500,000 Minneapolis, Special School District, 5.00%, 2/1/05... 499,965
520,000 Ramsey County, 5.60%, 12/1/05, callable 12/1/04 @ 100. 545,428
-----------
1,550,613
-----------
Mississippi (0.8%):
350,000 Mississippi Higher Education, SR Series B, 5.25%,
9/1/01............................................... 355,092
-----------
Montana (1.0%):
335,000 Montana Higher Education Student Assistance Corp.,
5.25%, 12/1/02....................................... 336,846
100,000 Montana Student Loan, 5.75%, 12/1/12.................. 92,423
-----------
429,269
-----------
Nebraska (0.6%):
250,000 Omaha, Airport Authority, 5.00%, 1/1/04............... 250,355
-----------
Nevada (4.0%):
300,000 Clark County, 5.40%, 7/1/03........................... 305,193
500,000 Clark County, Sanitation District, 5.60%, 7/1/07,
callable 7/1/03 @ 101................................ 509,715
405,000 Nevada Housing, 5.20%, 4/1/01......................... 407,195
500,000 State of Nevada, 4.40%, 11/1/01....................... 494,615
-----------
1,716,718
-----------
New Jersey (2.3%):
500,000 New Jersey State Transportation Trust, 5.00%, 6/15/06. 497,590
500,000 New Jersey Wastewater Treatment Trust, Series A,
4.80%, 9/1/06........................................ 490,740
-----------
988,330
-----------
New Mexico (2.4%):
500,000 Albuquerque, School District #12, 5.30%, 8/1/08,
callable 8/1/03 @ 100................................ 499,960
500,000 New Mexico Educational Assistance, 5.75%, 8/1/07...... 500,780
-----------
1,000,740
-----------
Ohio (1.1%):
250,000 Student Loan Funding Corp., Series C, 5.70%, 7/1/99... 257,293
200,000 Student Loan Funding Corp., Series C, 5.50%, 12/1/01.. 202,606
-----------
459,899
-----------
Pennsylvania (0.6%):
250,000 Commonwealth of Pennsylvania Insured Certificate of
Participation, 4.63%, 7/1/00......................... 250,222
-----------
Rhode Island (1.8%):
500,000 Rhode Island State, 4.90%, 6/15/04.................... 499,630
250,000 Rhode Island State Construction, Capital Development
Loan, Series B, 6.00%, 5/15/99....................... 260,960
-----------
760,590
-----------
</TABLE>
-27-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
South Dakota (1.2%):
500,000 South Dakota Student Loan, 5.85%, 8/1/00.............. $ 513,415
-----------
Texas (6.9%):
105,000 Arlington Independent School District, 6.10%, 5/15/05. 113,249
200,000 Arlington Permanent Independent, 6.70%, 8/15/12....... 222,042
195,000 Arlington GO, 6.10%, 2/15/05, callable 2/15/02 @ 100.. 205,592
500,000 Austin, Airport Revenue, 5.50%, 11/15/06.............. 505,175
500,000 Dallas Water & Sewer, 4.90%, 4/1/04................... 500,000
500,000 Hayes School District GO, 4.50%, 9/1/08............... 457,090
200,000 Houston, Water & Sewer System, Series C, MBIA, 5.25%,
12/1/00.............................................. 206,414
300,000 Temple, Independent School District, 4.90%, 2/1/04,
callable 2/1/01 @ 100................................ 299,787
400,000 Texas State College Student Loan, 5.40%, 8/1/02....... 407,052
-----------
2,916,401
-----------
Utah (1.8%):
250,000 Davis County, GO, 4.95%, 6/1/05....................... 248,600
500,000 Salt Lake County, 5.50%, 12/15/04..................... 525,005
-----------
773,605
-----------
Virginia (2.8%):
500,000 Fairfax County, Series A, 4.90%, 6/1/03, callable
6/1/00 @ 100.75...................................... 505,995
195,000 Virginia Educational Loan Authority, Series E, 5.50%,
3/1/01............................................... 201,690
500,000 Virginia State Housing Development Authority, 5.10%,
7/1/06, callable 1/1/02 @ 102........................ 489,110
-----------
1,196,795
-----------
Washington (5.6%):
310,000 King County, Public Hospital, Facility Revenue, AMBAC
Indemnity Corporation, 5.70%, 9/1/01................. 324,524
500,000 Seattle, Water System Revenue, 4.70%, 12/1/00......... 503,095
500,000 Tacoma, Electric System Revenue, 5.50%, 1/1/12........ 487,110
500,000 Washington State, 6.80%, 10/1/02, callable 10/1/99 @
100.................................................. 535,405
500,000 Washington State GO, 5.35%, 9/1/06, callable 9/1/05 @
100.................................................. 509,240
-----------
2,359,374
-----------
Wisconsin (10.9%):
500,000 City of Beloit, Sewer System Revenue Bond, 4.80%,
7/1/05............................................... 490,375
500,000 Franklin Public School District, 4.75%, 4/1/04........ 492,160
500,000 Green Bay Area Public Schools, 4.40%, 4/1/02.......... 490,080
400,000 Kenosha, Series A, 4.90%, 4/1/99...................... 405,460
500,000 Madison, 5.00%, 4/1/05................................ 501,795
500,000 Milwaukee, 5.15%, 11/15/08............................ 513,230
500,000 Sturgeon Bay, Combined Utility, 4.90%, 1/1/06......... 488,370
500,000 Wisconsin Housing & Economic Development Authority,
Housing Revenue, 4.70%, 11/1/99...................... 495,525
250,000 Wisconsin Housing & Economic Development Authority,
Series B, 4.90%, 11/1/01............................. 245,158
500,000 Wisconsin Housing & Economic Development Authority,
Series B, 5.20%, 11/1/06, callable 10/1/03 @ 102..... 489,780
-----------
4,611,933
-----------
</TABLE>
-28-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
Wyoming (0.6%):
250,000 Cheyenne, GO Unlimited, 5.45%, 12/1/01................. $ 260,108
-----------
Total Municipal Bonds 40,989,011
-----------
INVESTMENT COMPANIES (1.9%):
820,920 Prairie Municipal Money Market Fund.................... 820,920
-----------
Total Investment Companies 820,920
-----------
Total (Cost--$41,739,167)(a) $41,809,931
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $42,435,956.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................. $ 361,104
Unrealized deprecia-
tion.................. (290,340)
---------
Net unrealized appreci-
ation................. $ 70,764
=========
</TABLE>
<TABLE>
<S> <C> <C>
FGIC -- Financial Guarantee Insurance Corporation.
GO -- General Obligation.
GSL -- Guaranteed Student Loans.
MBIA -- Municipal Bond Insurance Association.
</TABLE>
-29-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (3.6%):
G.E. Capital:
500,000 7.00% (c).............................................. $ 485,781
-----------
Total Collateralized Mortgage Obligations 485,781
-----------
COMMON STOCKS (63.4%):
Banking (4.3%):
2,000 BankAmerica Corp. ..................................... 155,000
3,000 Barnett Banks, Inc. ................................... 186,750
3,000 NationsBank Corp. ..................................... 240,375
-----------
582,125
-----------
Business Services (0.5%):
1,000 First Data Corp. ...................................... 70,500
-----------
Chemicals (4.2%):
3,000 Air Products & Chemical................................ 163,875
3,000 Eastman Chemical Co. .................................. 207,375
1,300 Monsanto Co. .......................................... 199,550
-----------
570,800
-----------
Computer Hardware (3.9%):
2,400 Cabletron Systems (b).................................. 159,000
4,500 Cisco Systems, Inc. (b)................................ 208,687
2,800 Intel Corp. ........................................... 159,250
-----------
526,937
-----------
Computer Software (2.9%):
2,000 Microsoft Corp. (b).................................... 206,250
2,000 Oracle Corp. (b)....................................... 94,250
1,500 Shared Medical Systems Corp. .......................... 90,375
-----------
390,875
-----------
Consumer Goods & Services (4.9%):
5,000 Gillette Co. .......................................... 258,750
2,500 Kimberly Clark......................................... 186,250
2,600 Procter & Gamble Co. .................................. 220,350
-----------
665,350
-----------
Defense (1.5%):
4,000 Raytheon Co. .......................................... 205,000
-----------
Diversified (1.3%):
3,000 Allied Signal, Inc..................................... 177,375
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Electrical & Electronic (4.0%):
3,700 Compaq Computer Corp. (b).............................. $ 142,912
2,000 Emerson Electric Co. .................................. 161,500
3,000 General Electric Co. .................................. 233,625
-----------
538,037
-----------
Entertainment (1.4%):
3,000 Walt Disney Co. ....................................... 191,625
-----------
Financial Services (1.9%):
6,000 Federal National Mortgage Assoc........................ 191,250
2,000 MBNA Corp. ............................................ 59,250
-----------
250,500
-----------
Food Products & Services (2.8%):
4,000 McDonald's Corp. ...................................... 192,000
3,000 PepsiCo, Inc. ......................................... 189,750
-----------
381,750
-----------
Health Care (2.3%):
3,000 Abbott Labs............................................ 122,250
2,000 Johnson & Johnson...................................... 184,500
-----------
306,750
-----------
Home Furnishings (1.2%):
6,000 Newell Companies, Inc. ................................ 160,500
-----------
Insurance (3.6%):
2,450 American International Group........................... 229,381
1,200 General Re Corp. ...................................... 174,900
1,500 MGIC Investment Corp................................... 81,750
-----------
486,031
-----------
Medical Equipment & Supplies (2.7%):
2,000 Amgen, Inc. (b)........................................ 116,250
3,000 Lincare Holdings, Inc. (b)............................. 97,500
2,500 Medtronic, Inc. ....................................... 149,063
-----------
362,813
-----------
Office Equipment & Services (2.4%):
2,000 Hewlett Packard........................................ 188,000
2,000 Reuters Holding, PLC--ADR.............................. 130,250
-----------
318,250
-----------
</TABLE>
-30-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Oil & Gas Exploration Products & Services (3.5%):
2,000 Amoco Corp. ........................................... $ 144,500
1,500 Mobil Corp. ........................................... 173,813
2,000 Schlumberger Ltd. ..................................... 158,250
-----------
476,563
-----------
Pharmaceuticals (2.9%):
1,500 Merck & Co., Inc. ..................................... 93,375
3,000 Pfizer, Inc. .......................................... 201,000
1,000 Warner Lambert Co. .................................... 103,250
-----------
397,625
-----------
Photography (1.5%):
2,900 Eastman Kodak Co. ..................................... 205,900
-----------
Printing & Publishing (2.5%):
3,000 Gannett, Inc. ......................................... 201,750
2,000 Tribune Co. ........................................... 131,750
-----------
333,500
-----------
Retail Stores (1.5%):
2,000 Kohl's Corp. (b)....................................... 126,750
3,600 Office Depot, Inc. (b)................................. 70,650
-----------
197,400
-----------
Technology (1.2%):
3,000 Motorola, Inc. ........................................ 159,000
-----------
Telecommunications (4.5%):
3,000 AT&T Corp. ............................................ 183,750
5,000 GTE Corp. ............................................. 219,375
4,000 SBC Communications, Inc. .............................. 210,500
-----------
613,625
-----------
Total Common Stocks 8,568,831
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<S> <C> <C>
CORPORATE BONDS (3.6%):
Financial Services (1.8%):
250,000 GMAC, 6.50%, 12/5/05................................... $ 239,375
-----------
Telecommunications (1.8%):
250,000 AT&T Corp., 7.00%, 5/15/05............................. 253,438
-----------
Total Corporate Bonds 492,813
-----------
U.S. GOVERNMENT AGENCY (3.7%):
Federal Home Loan Bank:
500,000 5.41%, 4/8/96.......................................... 499,245
-----------
Total U.S. Government Agency 499,245
-----------
U.S. TREASURY NOTES (22.3%):
1,000,000 6.38%, 7/15/99......................................... 1,010,910
500,000 6.38%, 1/15/00......................................... 505,365
1,000,000 6.25%, 5/31/00......................................... 1,005,060
500,000 6.25%, 2/15/03......................................... 498,530
-----------
Total U.S. Treasury Notes 3,019,865
-----------
INVESTMENT COMPANIES (5.8%):
300,103 AMCORE Vintage U.S. Government Obligations Fund........ 300,103
490,007 Prairie Cash Management Fund........................... 490,007
-----------
Total Investment Companies 790,110
-----------
Total (Cost--$12,586,010) (a) $13,856,645
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $13,516,013.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................. $1,403,656
Unrealized deprecia-
tion.................. (133,021)
----------
Net unrealized appreci-
ation................. $1,270,635
==========
</TABLE>
(b) Represents non-income producing securities.
(c) When-issued security.
ADR -- American Depository Receipt.
PLC-- Public Liability Company.
-31-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE FIXED TOTAL RETURN FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (23.0%):
Federal Home Loan Mortgage Corp.:
2,000,000 6.50%, 9/15/06........................................ $ 1,942,580
2,000,000 6.50%, 3/15/07........................................ 1,973,020
2,000,000 6.00%, 12/15/17....................................... 1,919,060
G.E. Capital:
2,000,000 7.00% (b)............................................. 1,943,125
Resolution Trust Corp.:
1,690,674 7.43%*, 4/25/96....................................... 1,698,599
-----------
Total Collateralized Mortgage Obligations 9,476,384
-----------
CORPORATE BONDS (29.0%):
Banking (8.7%):
1,000,000 Bankers Trust, 8.13%, 5/15/02......................... 1,060,000
500,000 Chase Manhattan Corp., 8.80%, 2/1/00.................. 511,875
1,000,000 Citicorp, 6.38%, 1/15/06.............................. 958,750
1,000,000 Norwest Financial, Inc., 8.38%, 1/15/00............... 1,065,000
-----------
3,595,625
-----------
Chemicals (1.0%):
400,000 Monsanto Co., 8.40%, 1/15/97.......................... 408,000
-----------
Electric Utility (2.4%):
1,000,000 Alabama Power, 1st Mortgage, 6.75%, 2/1/03, Callable
2/1/98 @ 101.6....................................... 985,000
-----------
Financial Services (9.5%):
1,000,000 Bear Stearns, 6.70%, 8/1/03........................... 983,750
1,000,000 GMAC, 6.63%, 10/1/02.................................. 988,750
1,000,000 Lehman Senior Notes, 6.13%, 2/1/01.................... 971,250
1,000,000 Merrill Lynch & Co., 7.00%, 4/27/08................... 993,750
-----------
3,937,500
-----------
Food Products (1.2%):
500,000 Nabisco, Inc., 7.05%, 7/15/07......................... 487,500
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<S> <C> <C>
CORPORATE BONDS, CONTINUED:
Industrial Goods & Services (2.4%):
1,000,000 RPM, Inc., 7.00%, 6/15/05.............................. $ 992,500
-----------
Insurance (2.5%)
1,000,000 Lincoln National Corp., 7.13%, 7/15/99................. 1,016,250
-----------
Retail Stores (1.3%):
500,000 Sears Roebuck Co., 8.45%, 11/1/98...................... 526,875
-----------
Total Corporate Bonds 11,949,250
-----------
U.S. GOVERNMENT AGENCIES (9.7%):
Federal Home Loan Mortgage Corp.:
1,000,000 6.59%, 6/4/03, Callable 6/4/96 @ 100................... 1,000,120
2,000,000 6.62%, 3/3/04.......................................... 1,984,600
Federal National Mortgage Assoc.:
1,000,000 8.00%, 4/13/05, Callable 4/13/98 @ 100................. 1,028,280
-----------
Total U.S. Government Agencies 4,013,000
-----------
U.S. TREASURY NOTES (34.0%):
2,000,000 7.50%, 1/31/97......................................... 2,032,740
1,000,000 6.75%, 6/30/99......................................... 1,021,690
3,000,000 6.38%, 7/15/99......................................... 3,032,730
2,000,000 6.38%, 1/15/00......................................... 2,021,460
1,000,000 5.25%, 1/31/01......................................... 964,950
3,000,000 6.25%, 2/15/03......................................... 2,991,180
1,000,000 5.88%, 2/15/04......................................... 969,590
1,000,000 5.88%, 11/15/05........................................ 963,370
-----------
Total U.S. Treasury Notes 13,997,710
-----------
INVESTMENT COMPANIES (6.5%):
735,429 AMCORE Vintage U.S. Government Obligations Fund........ 735,429
1,960,028 Prairie Cash Management Fund........................... 1,960,028
-----------
Total Investment Companies 2,695,457
-----------
Total (Cost--$42,570,981)(a) $42,131,801
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $41,178,394.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................. $ 35,302
Unrealized deprecia-
tion.................. (474,482)
---------
Net unrealized depreci-
ation................. $(439,180)
=========
</TABLE>
(b) When-issued security.
* Variable rate security. Interest rate is as of March 31, 1996. Maturity date
reflects the next rate change date.
-32-
<PAGE>
THE COVENTRY GROUP
AMCORE AGGRESSIVE GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ---------------------------------------------------------- -----------
<S> <C> <C>
COMMON STOCKS (95.4%):
Automotive (1.9%):
2,000 OEA, Inc. ................................................ $ 73,000
7,000 Lear Seating Corp. (b).................................... 228,375
7,000 Wabash National Corp. .................................... 132,125
-----------
433,500
-----------
Banking (1.9%):
4,500 Barnett Banks, Inc. ...................................... 280,125
5,000 First Commerce Corp. ..................................... 165,000
-----------
445,125
-----------
Beverages (1.1%):
3,000 Coca-Cola Co. ............................................ 247,875
-----------
Business Services (2.8%):
5,000 First Data Corp. ......................................... 352,500
5,000 Paychex................................................... 292,500
-----------
645,000
-----------
Chemicals (5.1%):
7,200 Air Products & Chemical................................... 393,300
6,000 Eastman Chemical Co. ..................................... 414,750
2,500 Monsanto Co. ............................................. 383,750
-----------
1,191,800
-----------
Computer Hardware (7.9%):
6,000 Cabletron Systems (b)..................................... 397,500
14,000 Cisco Systems, Inc. (b)................................... 649,250
5,000 Intel Corp. .............................................. 284,375
8,000 Komag (b)................................................. 194,000
13,000 Silicon Graphics, Inc. (b)................................ 325,000
-----------
1,850,125
-----------
Computer Software (6.3%):
8,000 Computer Associates International, Inc. .................. 573,000
3,000 Microsoft Corp. (b)....................................... 309,375
6,000 Oracle Corp. (b).......................................... 282,750
5,000 Shared Medical Systems Corp. ............................. 301,250
-----------
1,466,375
-----------
Consumer Goods & Services (5.3%):
12,000 CUC International, Inc. (b)............................... 351,000
6,500 Gillette Co. ............................................. 336,375
3,000 International Flavors & Fragrance......................... 143,625
2,000 Kimberly Clark............................................ 149,000
3,000 Procter & Gamble Co. ..................................... 254,250
-----------
1,234,250
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ---------------------------------------------------------- -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Defense (1.4%):
3,000 Raytheon Co. ............................................. $ 153,750
3,000 Rockwell International.................................... 176,625
-----------
330,375
-----------
Electrical & Electronic (3.7%):
10,000 Compaq Computer Corp. (b)................................. 386,250
4,000 General Electric Co. ..................................... 311,500
5,000 Molex, Inc. .............................................. 174,375
-----------
872,125
-----------
Electronics--Semiconductors (1.2%):
6,000 Adaptec, Inc. (b)......................................... 289,500
-----------
Entertainment (2.8%):
12,000 Carnival Cruise Lines..................................... 330,000
5,000 Walt Disney Co. .......................................... 319,375
-----------
649,375
-----------
Financial Services (4.1%):
11,000 Federal National Mortgage Assoc. ......................... 350,625
4,000 Household International................................... 269,000
11,400 MBNA Corp. ............................................... 337,725
-----------
957,350
-----------
Food Products & Services (2.3%):
6,000 McDonald's Corp. ......................................... 288,000
4,000 PepsiCo, Inc. ............................................ 253,000
-----------
541,000
-----------
Health Care (4.0%):
7,000 Healthcare Compare Corp. (b).............................. 352,625
6,387 Johnson & Johnson......................................... 589,201
-----------
941,826
-----------
Home Furnishings (1.1%):
10,000 Newell Companies, Inc. ................................... 267,500
-----------
Insurance (3.8%):
7,500 AFLAC, Inc. .............................................. 234,375
3,500 American International Group.............................. 327,687
2,000 MBIA, Inc. ............................................... 150,000
3,000 MGIC Investment Corp. .................................... 163,500
-----------
875,562
-----------
Machinery & Equipment (0.9%):
6,000 Applied Materials (b)..................................... 209,250
-----------
</TABLE>
Continued
-33-
<PAGE>
THE COVENTRY GROUP
AMCORE AGGRESSIVE GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1996
See notes to financial statements.
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ---------------------------------------------------------- -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Manufacturing--Capital Goods (0.8%):
5,000 Parker Hannifin Corp. .................................... $ 187,500
-----------
Manufacturing--Consumer Goods (1.7%):
4,000 Ionics, Inc. (b).......................................... 167,000
8,000 U.S. Filter Corp. (b)..................................... 224,000
-----------
391,000
-----------
Medical Equipment & Supplies (7.1%):
6,000 Amgen, Inc. (b)........................................... 348,750
8,000 Lincare Holdings, Inc. (b)................................ 260,000
6,500 Medtronic, Inc. .......................................... 387,563
4,000 Nellcor Puritan Bennett, Inc. (b)......................... 257,000
5,000 W.R. Grace & Co. ......................................... 391,250
-----------
1,644,563
-----------
Medical-Hospital Services (1.0%):
8,000 Vivra, Inc. (b)........................................... 238,000
-----------
Office Equipment & Services (2.9%):
4,000 Hewlett Packard........................................... 376,000
4,500 Reuters Holding, PLC-ADR.................................. 293,062
-----------
669,062
-----------
Oil & Gas Exploration Products & Services (2.0%):
1,000 Mobil Corp. .............................................. 115,875
3,500 Schlumberger Ltd. ........................................ 276,938
3,000 Seitel, Inc. (b).......................................... 81,375
-----------
474,188
-----------
Pharmaceuticals (4.3%):
2,000 Merck & Company, Inc. .................................... 124,500
5,500 Pfizer, Inc. ............................................. 368,500
5,000 R.P. Scherer Corp. (b).................................... 219,375
5,000 Schering Plough........................................... 290,625
-----------
1,003,000
-----------
Photography (0.6%):
2,000 Eastman Kodak Co. ........................................ 142,000
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------- --------------------------------------------------------- -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Printing & Publishing (1.2%):
10,500 Banta Corp. ............................................. $ 280,875
-----------
Restaurants (1.0%):
10,000 Starbucks Corp. (b)...................................... 233,125
-----------
Retail Stores (6.3%):
10,000 Barnes & Noble (b)....................................... 347,500
4,500 Kohl's Corp. (b)......................................... 285,187
10,000 Lowe's Companies......................................... 357,500
14,000 Office Depot, Inc. (b)................................... 274,750
6,000 Pep Boys-Manny Moe & Jack................................ 201,000
-----------
1,465,937
-----------
Services (1.5%):
10,500 Olsten Corp. ............................................ 338,625
-----------
Technology (2.3%):
4,500 Motorola, Inc. .......................................... 238,500
9,500 Xilinx, Inc. (b)......................................... 301,625
-----------
540,125
-----------
Telecommunications (1.0%):
8,500 DSC Communications Corp. (b)............................. 229,500
-----------
Utilities--Telecommunications (4.1%):
1,000 AT&T Corp. .............................................. 61,250
11,000 Frontier Corp. .......................................... 346,500
6,000 GTE Corp. ............................................... 263,250
5,500 SBC Communications, Inc. ................................ 289,438
-----------
960,438
-----------
Total Common Stocks 22,245,851
-----------
INVESTMENT COMPANIES (4.6%):
900,000 AMCORE Vintage U.S. Government Obligations Fund.......... 900,000
162,343 Prairie Cash Management Fund............................. 162,343
-----------
Total Investment Companies 1,062,343
-----------
Total (Cost--$21,756,961)(a) $23,308,194
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $23,318,730.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion.................. $2,361,833
Unrealized deprecia-
tion.................. (810,600)
----------
Net unrealized appreci-
ation................. $1,551,233
==========
</TABLE>
(b) Represents non-income producing securities.
ADR -- American Depository Receipt.
PLC-- Public Liability Company.
-34-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
1.ORGANIZATION:
The Coventry Group ("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 AMCORE Vintage U.S. Government
Obligations Fund, the AMCORE Vintage Equity Fund, the AMCORE Vintage Fixed
Income Fund, the AMCORE Vintage Intermediate Tax-Free Fund, the AMCORE
Vintage Balanced Fund, the AMCORE Vintage Fixed Total Return Fund and the
AMCORE Vintage Aggressive Growth 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 U.S. Government Obligations Fund's investment objective is to seek
current income consistent with maintaining liquidity and stability of
principal by investing exclusively in short-term U.S. Treasury Bills, notes
and other short-term obligations issued or guaranteed by the U.S. Government
or its agencies or instrumentalities, and repurchase agreements with respect
thereto. The investment objective of the Equity Fund is long-term capital
appreciation by investing primarily in a diversified portfolio of equity
securities. The investment objective of the Fixed Income Fund is to seek
total return consistent with the production of current income and the
preservation of capital by investing primarily in fixed income securities
that have a stated or remaining maturity of 15 years or less or expect to
maintain a dollar-weighted average portfolio maturity of 3 to 7 years. The
investment objective of the Intermediate Tax-Free Fund is to seek current
income, consistent with the preservation of capital, that is exempt from
federal income taxes by investing primarily in a diversified portfolio of
intermediate-term tax-free fixed income securities. The investment objective
of the Balanced Fund is to seek long-term growth of capital and income by
investing primarily in a diversified portfolio of equity securities and high
quality fixed income securities. The investment objective of the Fixed Total
Return Fund is to seek long-term total return by investing primarily in a
diversified portfolio of fixed income securities including certain types of
fixed income securities that may exhibit greater volatility than those
invested in by the Fixed Income Fund. The investment objective of the
Aggressive Growth Fund is long-term capital growth by investing primarily in
common stocks and other equity-type securities of small, medium and large
capitalized companies that exhibit a strong potential for price appreciation
relative to other equity securities.
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. The
Continued
-35-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1996
preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts and disclosures. Actual
results could differ from those estimates.
SECURITIES VALUATION:
Investments of the U.S. Government Obligations Fund ("the 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 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, U.S. Government securities and U.S. Government
agency securities of the Equity Fund, the Fixed Income Fund, the
Intermediate Tax-Free Fund, the Balanced Fund, the Fixed Total Return
Fund and the Aggressive Growth 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 differences between the cost and market values of
investments held by the variable net asset value funds are reflected as
either unrealized appreciation or depreciation.
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 member banks of the
Federal Deposit Insurance Corporation and from financial institutions
such as banks and broker dealers which the investment adviser, AMCORE
Capital Management, Inc. ("AMCORE"), 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
Continued
-36-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1996
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.
SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS:
Each Fund may purchase securities on a when-issued or delayed-delivery
basis. When-issued securities are securities purchased for delivery
beyond the normal settlement date at a stated price and/or yield, thereby
involving the risk that the price and/or yield obtained may be more or
less than those available in the market when delivery takes place. At the
time a Fund makes the commitment to purchase a security on a when-issued
basis, the Fund records the transaction and reflects the value of the
security in determining net asset value. A segregated account is
established and the Fund maintains cash and marketable securities at
least equal in value to commitments for when-issued securities.
Securities purchased on a when-issued basis or delayed delivery basis do
not earn income until settlement date.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the U.S. Government Obligations Fund. Dividends from net investment
income are declared and paid quarterly for the Equity Fund, the Balanced
Fund, the Fixed Total Return Fund and the Aggressive Growth Fund.
Dividends from net investment income are declared and paid monthly for
the Fixed Income Fund and the Intermediate Tax-Free Fund. Distributable
net realized capital gains, if any, are declared and distributed at least
annually for each of the Funds. These dividends are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
deferrals of certain losses.
FEDERAL INCOME TAXES:
It is the policy of each Fund to qualify or continue 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.
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
Continued
-37-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1996
expenses for the Group are prorated to the Funds and any other portfolios
of the Group on the basis of relative net assets.
3.PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
year ended March 31, 1996 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Equity Fund.......................................... $77,890,585 $58,371,802
Fixed Income Fund.................................... 84,276,615 91,090,195
Intermediate Tax-Free Fund........................... 15,264,839 4,899,282
Balanced Fund (a).................................... 20,016,672 9,251,571
Fixed Total Return Fund (b).......................... 65,129,900 25,071,956
Aggressive Growth Fund (c)........................... 19,480,803 642,802
</TABLE>
- --------
(a) For the period from June 1, 1995 (commencement of operations) through
March 31, 1996.
(b) For the period from June 15, 1995 (commencement of operations) through
March 31, 1996.
(c) For the period from October 2, 1995 (commencement of operations) through
March 31, 1996.
4.RELATED PARTY TRANSACTIONS:
Pursuant to an investment advisory agreement, investment advisory services
are provided to the Funds by AMCORE. Under the terms of the investment
advisory agreement, AMCORE is entitled to receive fees computed daily based
on a percentage of the average net assets of each Fund.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership, and BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") are subsidiaries of the BISYS Group, Inc.
BISYS, 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 trustees of the
Group. Under the terms of the administration agreement, BISYS's fees are
computed daily as a percentage of the average net assets of each Fund.
BISYS Ohio serves the Funds as Transfer Agent and Fund Accountant. Under the
terms of the Transfer Agent and Fund Accountant Agreements, BISYS Ohio's
fees are computed on the basis of number of shareholders and average net
assets, respectively.
The Group has 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 BISYS, as distributor, a periodic amount,
calculated at an annual rate not to exceed 0.25% of the average daily net
asset value of each of the Funds. These fees are used by BISYS to pay banks,
including affiliates of AMCORE, broker dealers and other
Continued
-38-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1996
institutions, or to reimburse BISYS or its affiliates, for administration,
distribution and shareholder services in connection with the distribution of
Fund shares. No amounts were paid or waived under the terms of this plan
during the year ended March 31, 1996.
The Group has adopted an Administrative Services Plan (the "Services Plan"),
pursuant to which the variable net asset value funds are authorized to pay
compensation to banks and other financial institutions (each a "Service
Organization"), which may include the Adviser, its correspondent and
affiliated banks and BISYS, which agree to provide certain ministerial,
recordkeeping and/or administrative support services for their customers or
account holders. In consideration for such services, a Service Organization
receives a fee from the Fund, computed daily and paid monthly, at an annual
rate not to exceed 0.25% of the average daily net asset value of each of the
Funds. Prior to March 1, 1996, no fees were charged to any of the variable
net asset value funds under the Administrative Services Plan.
AMCORE has agreed that if the aggregate expenses of any of the Funds, as
defined, for any fiscal year exceed the expense limitation of any State
having jurisdiction over the Fund, AMCORE will reimburse to the Fund, or
otherwise bear, such excess. Such limitation did not affect the calculation
of the investment advisory fees during the year ended March 31, 1996.
Furthermore, fees may be voluntarily reduced to assist the Funds in
maintaining competitive expense ratios.
Information regarding these transactions is as follows for the year ended
March 31, 1996:
<TABLE>
<CAPTION>
U.S. GOVERNMENT FIXED
OBLIGATIONS EQUITY INCOME
FUND FUND FUND
--------------- -------- -------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)......... 0.40% 0.75% 0.75%
Voluntary fee reductions.................... $253,524 -- --
ADMINISTRATION FEES:
Annual fee (percentage of average net assets
of certain shares)......................... 0.20% 0.20% 0.20%
ADMINISTRATIVE SERVICES FEES:
Annual fee (percentage of average net assets
of certain shares)......................... NA 0.25% 0.25%
DISTRIBUTION AND SHAREHOLDER SERVICE FEES:
Annual fee (percentage of average net assets
of certain shares)......................... 0.25% 0.25% 0.25%
TRANSFER AGENT & FUND ACCOUNTING FEES:...... $ 92,721 $116,729 $70,556
</TABLE>
Continued
-39-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1996
<TABLE>
<CAPTION>
INTERMEDIATE FIXED AGGRESSIVE
TAX-FREE BALANCED TOTAL RETURN GROWTH
FUND FUND(a) FUND(b) FUND(c)
------------ -------- ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee
reductions (percentage of av-
erage net assets)............. 0.60% 0.75% 0.75% 0.95%
Voluntary fee reductions....... $95,510 -- -- --
ADMINISTRATION FEES:
Annual fee (percentage of aver-
age net assets of certain
shares)....................... 0.20% 0.20% 0.20% 0.20%
ADMINISTRATIVE SERVICES FEES:
Annual fee (percentage of aver-
age net assets of certain
shares)....................... 0.25% 0.25% 0.25% 0.25%
DISTRIBUTION AND SHAREHOLDER
SERVICE FEES:
Annual fee (percentage of aver-
age net assets of certain
shares)....................... 0.25% 0.25% 0.25% 0.25%
TRANSFER AGENT & FUND ACCOUN-
TANT FEES:.................... $50,340 $23,240 $31,701 $14,028
</TABLE>
--------
(a) For the period from June 1, 1995 (commencement of operations) through
March 31, 1996.
(b) For the period from June 15, 1995 (commencement of operations) through
March 31, 1996.
(c) For the period from October 2, 1995 (commencement of operations) through
March 31, 1996.
NA Not applicable.
5.FEDERAL INCOME TAXES:
For federal income tax purposes, the following Funds have capital loss
carryforwards as of March 31, 1996, which are available to offset future
capital gains, if any:
<TABLE>
<CAPTION>
AMOUNT EXPIRES
---------- -------
<S> <C> <C>
U.S. Government Obligations Fund........................... $ 13,867 2002
Fixed Income Fund.......................................... $ 631,115 2003
$1,139,647 2004
Intermediate Tax-Free Fund................................. $ 91,328 2003
$ 47,384 2004
</TABLE>
Continued
-40-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1996
6.ELIGIBLE DISTRIBUTIONS (UNAUDITED):
The Coventry Group designates the following eligible distributions for the
dividends received deduction for corporations:
<TABLE>
<CAPTION>
AMCORE AMCORE AMCORE
VINTAGE VINTAGE VINTAGE
EQUITY BALANCED AGGRESSIVE
FUND FUND GROWTH FUND
---------- -------- -----------
<S> <C> <C> <C>
Dividend income............................... $3,487,500 $154,894 $76,108
Dividend income per share..................... $ 0.125 $ 0.069 $ 0.003
</TABLE>
7.EXEMPT-INTEREST DIVIDENDS (UNAUDITED):
The Coventry Group designates the following exempt-interest dividends for
the taxable year ended March 31, 1996:
<TABLE>
<CAPTION>
AMCORE
VINTAGE
INTERMEDIATE
TAX-FREE FUND
-------------
<S> <C>
Exempt-interest dividends..................................... $1,492,074(a)
Exempt-interest dividends per share........................... $ 0.432
</TABLE>
--------
(a) $213,811 of exempt-interest dividends are subject to alternative minimum
taxes.
-41-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
---------------------------------------------
YEAR YEAR YEAR DECEMBER 21,
ENDED ENDED ENDED 1992 TO
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1996 1995 1994 1993 (a)
--------- --------- --------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income............ 0.051 0.042 0.027 0.007
-------- -------- -------- --------
DIVIDENDS AND DISTRIBUTIONS:
From net investment income....... (0.051) (0.042) (0.027) (0.007)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Return...................... 5.24% 4.32% 2.73% 0.75%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)........................... $153,836 $137,888 $105,345 $ 87,928
Ratio of expenses to average net
assets.......................... 0.54% 0.50% 0.56% 0.58%(c)
Ratio of net investment income to
average net assets.............. 5.08% 4.26% 2.70% 2.68%(c)
Ratio of expenses to average net
assets*......................... 0.72% 0.98% 1.02% 1.14%(c)
Ratio of net investment income to
average net assets*............. 4.90% 3.78% 2.23% 2.12%(c)
</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.
-42-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY FUND
---------------------------------------------
YEAR YEAR YEAR DECEMBER 15,
ENDED ENDED ENDED 1992 TO
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1996 1995 1994 1993 (a)
--------- --------- --------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $ 11.44 $ 10.05 $ 10.20 $ 10.00
-------- -------- -------- -------
INVESTMENT ACTIVITIES:
Net investment income............. 0.13 0.15 0.19 0.05
Net realized and unrealized gains
(losses) from investments........ 3.27 1.41 (0.14) 0.19
-------- -------- -------- -------
Total from Investment Activities. 3.40 1.56 0.05 0.24
-------- -------- -------- -------
DIVIDENDS AND DISTRIBUTIONS:
From net investment income........ (0.13) (0.15) (0.20) (0.04)
From net realized gains from
investment
transactions..................... (0.23) (0.02) -- --
-------- -------- -------- -------
Total Dividends and
Distributions................... (0.36) (0.17) (0.20) (0.04)
-------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD..... $ 14.48 $ 11.44 $ 10.05 $ 10.20
======== ======== ======== =======
Total Return....................... 29.96% 15.74% 0.45% 2.45%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000). $210,950 $149,233 $125,203 $74,720
Ratio of expenses to average net
assets........................... 1.09% 1.07% 0.54% 0.23%(c)
Ratio of net investment income to
average net assets............... 0.96% 1.47% 1.97% 2.40%(c)
Ratio of expenses to average net
assets*.......................... 1.09% 1.35% 1.37% 1.43%(c)
Ratio of net investment income to
average net assets*.............. 0.96% 1.19% 1.15% 1.20%(c)
Portfolio Turnover................ 33.23% 20.54% 3.98% 0.00%
</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.
-43-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FIXED INCOME FUND
------------------------------------------
YEAR YEAR YEAR DECEMBER 15,
ENDED ENDED ENDED 1992 TO
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1996 1995 1994 1993 (a)
--------- --------- --------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $ 9.71 9.92 $ 10.28 $ 10.00
------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income............. 0.61 0.54 0.59 0.18
Net realized and unrealized gains
(losses) from investments........ 0.23 (0.22) (0.33) 0.27
------- ------- ------- -------
Total from Investment Activities. 0.84 0.32 0.26 0.45
------- ------- ------- -------
DIVIDENDS AND DISTRIBUTIONS:
From net investment income........ (0.62) (0.53) (0.59) (0.17)
From net realized gains from
investment transactions.......... -- -- (0.03) --
------- ------- ------- -------
Total Dividends and
Distributions................... (0.62) (0.53) (0.62) (0.17)
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD..... $ 9.93 9.71 $ 9.92 $ 10.28
======= ======= ======= =======
Total Return....................... 8.74% 3.46% 2.43% 4.54%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000). $84,752 $81,673 $90,301 $50,127
Ratio of expenses to average net
assets........................... 0.97% 0.94% 0.51% 0.29%(c)
Ratio of net investment income to
average net
assets........................... 5.77% 5.53% 5.74% 6.58%(c)
Ratio of expenses to average net
assets*.......................... 0.97% 1.22% 1.24% 1.34%(c)
Ratio of net investment income to
average net assets*.............. 5.77% 5.26% 5.01% 5.53%(c)
Portfolio Turnover................ 113.25% 32.38% 32.03% 17.44%
</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.
-44-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE FUND
------------------------------------------
YEAR YEAR YEAR FEBRUARY 15,
ENDED ENDED ENDED 1993 TO
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1996 1995 1994 1993 (a)
--------- --------- --------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $ 9.97 $ 9.91 $10.05 $ 10.00
------- ------- ------ -------
INVESTMENT ACTIVITIES:
Net investment income............. 0.43 0.43 0.42 0.05
Net realized and unrealized gains
(losses) from investments........ 0.30 0.07 (0.13) 0.04
------- ------- ------ -------
Total from Investment Activities. 0.73 0.50 0.29 0.09
------- ------- ------ -------
DIVIDENDS AND DISTRIBUTIONS:
From net investment income........ (0.43) (0.43) (0.42) (0.04)
From net realized gains from
investment transactions.......... -- (0.01) (0.01) --
------- ------- ------ -------
Total Dividends and
Distributions................... (0.43) (0.44) (0.43) (0.04)
------- ------- ------ -------
NET ASSET VALUE, END OF PERIOD..... $ 10.27 $ 9.97 $ 9.91 $ 10.05
======= ======= ====== =======
Total Return....................... 7.43% 5.29% 2.79% 0.90%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000). $42,436 $30,717 $32,983 $13,043
Ratio of expenses to average net
assets........................... 0.75% 0.73% 0.57% 0.42%(c)
Ratio of net investment income to
average net assets............... 4.21% 4.42% 4.19% 4.31%(c)
Ratio of expenses to average net
assets*.......................... 1.02% 1.30% 1.38% 1.47%(c)
Ratio of net investment income to
average net assets*.............. 3.94% 3.84% 3.37% 3.26%(c)
Portfolio Turnover................ 14.21% 5.77% 13.26% 0.00%
</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.
-45-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BALANCED FIXED TOTAL AGGRESSIVE
FUND RETURN FUND GROWTH FUND
--------------- ---------------- ---------------
JUNE 1, 1995 TO JUNE 15, 1995 TO OCTOBER 2, 1995
MARCH 31, MARCH 31, TO MARCH 31,
1996 (a) 1996 (a) 1996 (a)
--------------- ---------------- ---------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 10.00 $ 10.00 $ 10.00
------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income........ 0.24 0.44 --
Net realized and unrealized
gains (losses) from
investments................. 1.08 (0.11) 0.90
------- ------- -------
Total from Investment
Activities................. 1.32 0.33 0.90
------- ------- -------
DIVIDENDS AND DISTRIBUTIONS:
From net investment income... (0.24) (0.43) --
From net realized gains from
investment transactions..... -- (0.01) (0.02)
------- ------- -------
Total Dividends and
Distributions.............. (0.24) (0.44) (0.02)
------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 11.08 $ 9.89 $ 10.88
======= ======= =======
Total Return................ 13.29%(b) 3.40%(b) 9.10%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)....................... $13,516 $41,178 $23,319
Ratio of expenses to average
net assets.................. 1.32%(c) 1.18%(c) 1.57%(c)
Ratio of net investment
income to average net
assets...................... 2.66%(c) 5.53%(c) 0.08%(c)
Ratio of expenses to average
net assets*................. 1.32%(c) 1.18%(c) 1.57%(c)
Ratio of net investment
income to average net
assets*..................... 2.66%(c) 5.53%(c) 0.08%(c)
Portfolio Turnover........... 61.72% 69.30% 4.31%
</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.
-46-
<PAGE>
INVESTMENT ADVISER
AMCORE Capital Management, Inc.
501 Seventh Street
Rockford, Illinois 61104
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
INDEPENDENT AUDITORS
Ernst & Young LLP
One Columbus
10 West Broad Street
Suite 2300
Columbus, Ohio 43215
[LOGO OF AMCORE CAPITAL MANAGEMENT, INC. APPEARS HERE]
ANNUAL REPORT TO SHAREHOLDERS MARCH 31, 1996
BISYS Fund Services
3435 STELZER ROAD
COLUMBUS, OH 43219
