<PAGE>
MESSAGE FROM THE CHAIRMAN AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
Dear Shareholders:
We're pleased to report that the year ended March 31, 1997, was a strong one
for the financial markets and for the AMCORE Vintage Mutual Funds. While the
stock market weakened in the closing weeks of the period, for the year overall,
stocks posted strong gains. Despite a somewhat more nervous atmosphere in the
fixed-income markets, bonds, too, posted positive returns.
Moreover, during the year, investors continued to invest heavily in mutual
funds--and we're pleased to report that many chose the AMCORE Vintage Mutual
Funds. Over the course of the year, total net assets under management rose 27%,
increasing from approximately $570 million on March 31, 1996, to $726 million
at the end of the twelve-month period.
MORNINGSTAR SMILES ON THE EQUITY FUND
We are very pleased to report that the Fund was awarded five stars, or a rating
of "Excellent," by Morningstar. Based on performance over three, five and ten
years, only the top ten percent of funds in any one category are given such a
rating by Morningstar.* The Fund was rated among 1919 domestic equity funds for
the three year period ended March 31, 1997.
NOW AT JACK WHITE & COMPANY. . .
. . . the Amcore Vintage Mutual Funds. Now you can obtain prospectuses or
purchase shares in any of our funds through Jack White & Company discount
brokerage services.
A TIME FOR OPTIMISM, AND CAUTION
Finally, the past year overall has been a good one for stock investors. But, as
we've all seen in the past several weeks, gravity ultimately does prevail. As
they have time and again in the past, stocks have taken a breather after the
astonishing gains of the past year. Nonetheless, there is little reason to
believe that they will not--as they have in the past--rebound from recent
levels and move even higher with time.
That's why a long-term perspective is more important now than ever--and, yet,
more difficult to maintain as the media headlines events in the market every
night. But those that attempt to second-guess the direction of the market have
seldom been as successful as those that take a systematic, disciplined and
long-term approach to investing.
Historically, those with the fortitude to withstand swings in price have been
rewarded handsomely. And there is little reason to believe that this will not
be the case this time, as the fundamentals of our economy remain strong and the
long-term prospects for stocks are very bright indeed.
IN CLOSING . . .
We urge you to read the following report closely. In it, you will find a
detailed discussion of the performance of each of the AMCORE Vintage Mutual
Funds during the year ended March 31, 1997.
- --------------------------------------------------------------------------------
The AMCORE Vintage Mutual Funds are distributed by BISYS Fund Services.
Shares of the AMCORE Vintage Mutual Funds are NOT INSURED BY THE FDIC and are
not deposits or obligations of, or guaranteed or endorsed by, AMCORE Financial
Inc., any of its subsidiaries or AMCORE Capital Management, Inc. 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 free prospectus.
Please read it carefully before investing or sending money.
-1-
<PAGE>
MESSAGE FROM THE CHAIRMAN
AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
Finally, we thank you for your continued confidence in us. We look forward to
providing you with excellent investment management and to serving your 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. Grim
Walter B. Grimm
Chairman
March 31, 1997
- ------
* Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 3/31/97. The ratings are subject to change every month. Past performance
is no guarantee of future results. Morningstar ratings are calculated from a
fund's three-, five-, and ten-year average annual returns in excess of 90-day
Treasury bill returns with appropriate fee adjustments, and a risk factor that
reflects fund performance below 90-day Treasury bill returns. Ten percent of
the funds in an investment category receive five stars; 22.5% receive four
stars; 35% receive three stars; 22.5% receive two stars; and 10% receive one
star.
-2-
<PAGE>
MESSAGE FROM THE INVESTMENT ADVISER AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
Dear Shareholders:
The stock and bond markets swooned in recent weeks as the Federal Reserve
flexed its inflation-fighting muscles and raised short-term interest rates--and
more may be in store if the economy fails to slow to a more sustainable pace.
But, inflation itself has yet to show signs of acceleration.
So why is the Federal Reserve worried? With the economy growing at a pace
greater than 4% annually, the jobs creation rate now exceeds the normal rate of
growth in our nation's labor force. In the past, too many jobs and not enough
workers led to wage and price inflation. Higher interest rates are believed to
eventually slow economic and job growth, thus forestalling wage and price
pressures.
BUT IS THERE EVEN A PROBLEM?
Apparently not. Economists have long postulated that whenever unemployment
falls below a certain level, generally believed to be around 6%, inflation
sparks. Yet, the U.S. unemployment rate has been 6% or below since July 1994--
and inflation has failed to ignite.
Further confounding economists is the fact that aging expansions by their very
nature often produce inflation. The current expansion is now some six years
old, and the current level of inflation is lower than at similar times in any
expansion of the past 30 years. In fact, core consumer inflation, without food
or energy costs, has actually fallen over the past six years. Energy is not
inflationary either, with the price of oil down by 25% over the past three
months. Commodity prices have declined this year. Signs of production
bottlenecks remain nonexistent. Unfilled orders are low, and vendor deliveries
are timely.
THE DEATH OF INFLATION?
All of this leads to a conclusion that deflationary, rather than inflationary,
pressures are at work. Over the past several years, market forces, such as the
downsizing of corporations the exporting of low wage jobs, as well as
immigration and new techniques like "just in time" inventories, have worked to
hold wage and price pressures in check. The balancing of the Federal budget and
the apparent commitment of Congress to reduce the deficit have also played a
role.
But, after the shock of inflation levels experienced in the late 70's and early
80's, the Federal Reserve is in no mood to let matters take their own course.
Just the fear of wage pressures is enough to elicit a round of inflation
fighting.
A BUMPY ROAD AHEAD. . .
The markets usually react badly to aggressive Fed tightening; this round has
been no exception. Thedegree of future rate hikes will be important to ongoing
market performance for the balance of 1997.
Looking ahead, we believe that strong growth will continue to trouble the
Federal Reserve. Nevertheless, it seems very unlikely that the recent rate hike
and possibly one or two equally small increases in the months ahead will bring
the economy to a screeching halt. Rather, they could be viewed as momentary
belt tightening enabling the economy to continue its advance at a more modest
pace.
Nonetheless, volatility has ruled since the Fed opened fire on March 25, and we
expect to see more of the same in the coming months. Economic fundamentals,
however, are very constructive. Moreover, industry is currently adding plants
and equipment at levels not seen in many years--which, ultimately, will allow
companies to produce more
-3-
<PAGE>
MESSAGE FROM THE INVESTMENT ADVISER AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
for less, even if they pay labor more. On balance, the tremendous growth of
industrial capacity provides a very strong fundamental support to the markets.
AVOID "IRRATIONAL EXUBERANCE"
Consequently, while the road ahead may be somewhat bumpy, the long-term
prospects for our economy and for the markets are very solid. Nevertheless,
following equity market gains of 30% and 20% in the past two years, it is
unrealistic to expect similar gains this year. A return to 10% gains--the
average of the past 70 years--is not beyond the market's potential in the
coming months. Very simply, greater volatility and uncertainty are to be
expected and are the price long-term investors pay for these greater returns.
Sincerely,
/s/ Jay H. Evans
Jay H. Evans
President AMCORE Capital Management, Inc.
March 31, 1997
-4-
<PAGE>
PERFORMANCE REPORT AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
THE AMCORE VINTAGE AGGRESSIVE GROWTH FUND*
The year ended March 31, 1997, was a tumultuous one for aggressive investors.
After posting astonishing gains in the spring of '96, stocks took a dive in
mid-summer, only to snap back smartly and rise throughout the summer's end.
Then, in the fall, market sentiment narrowed to favor large, well-known
companies. As 1997 opened, renewed fear of inflation and interest rate hikes as
well as a strengthening dollar triggered a correction, and even the biggest and
best-known stocks suffered setbacks. Smaller companies, however, took a
beating--and many technology stocks, in particular, declined dramatically.
While the decline in the first quarter did impact performance, it did not erase
the Fund's impressive gain over the year. Moreover, even in the dismal
environment of the first quarter for technology stocks, several of our holdings
in this sector held up. Dell Computer (1.2% of the portfolio's holdings),
gained 27% in the first twelve weeks of the year. As a result, the year overall
was a rewarding and profitable one. For the twelve months ended March 31, 1997,
the Fund posted a total return of 9.39%.
LET THE BARGAIN-HUNTING BEGIN. . .
Given the heady levels the market reached in mid-January, a correction,
particularly in the price of technology stocks was not all that surprising.
What was somewhat surprising, however, was the speed and size of the drop.
Cisco Systems (2.4% of the portfolio's holdings), for instance, dominates its
industry and is fundamentally strong. Yet, this stock has dropped some 40% of
its value since the correction began. Many others are in the same boat--
companies with solid balance sheets, growing at 30-35% a year, and the prospect
of doing so for many years to come.
Consequently, today, we see real value in the technology sector. The financial
services and health care sectors also offer investors many attractive
opportunities--opportunities we expect to capitalize on in the coming months.
As always, we will continue to seek out and buy stocks of good companies that
others are selling for the wrong reasons.
As of March 31, 1997, the top five equity holdings in the Fund's portfolio were
Cisco Systems (2.4% of the portfolio's holdings), Intel (2.3%), Adaptec (2.2%),
Computer Associates (2.1%) and Lowe's (2.0%).**
- ------
* Small-cap companies typically carry additional risk 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.
AMCORE Vintage Aggressive Growth Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
AMCORE Vintage NASDAQ S&P MidCap
Aggressive S&P 500 Composite 400 Stock
Growth Fund Stock Index Index Index
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
9/29/95 10,000 10,000 10,000 10,000
3/31/96 10,910 11,172 10,580 10,767
9/30/96 11,913 12,033 11,800 11,400
3/31/97 11,934 13,382 11,762 11,911
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------
Since
Inception
1 Year (9/29/95)
---------------------------
<S> <C> <C>
3/31/97 9.39% 12.52%
</TABLE>
Past performance is not predictive of future results. The value of shares in
the AMCORE Vintage Mutual 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 the S&P 500 Stock Index, the NASDAQ Composite Index and the S&P Mid Cap
400 Stock Index which represent the performance of the stock market as a whole,
small-capitalization stocks and small- to mid-sized companies respectively. The
indices are unmanaged and 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 EQUITY FUND
While the ride was a bumpy one at times, the year ended March 31, 1997, was a
very good one for the Fund's investors. Suffering only a minor setback in July
when the market dropped suddenly and sharply, blue-chip stocks moved higher
throughout the fall and early winter. In March, however, the market lost much
of the ground gained over the previous three months.
Unlike many others, however, the Fund's performance suffered only slightly,
due to the wide diversification and high quality of its holdings. In addition,
as stocks hit stratospheric levels in early January, exposures in the
technology sector were reduced slightly. Moreover, few of our holdings posted
disappointing earnings--including our holdings in the technology sector, such
as Intel (2.0% of the portfolio) and Microsoft (0.7%). Health care and
financial services stocks also continued to perform solidly. As a result, the
year overall was a very strong one for the Fund. For the year ended March 31,
1997, the Fund produced a total return of 18.35%.
QUALITY IS CRITICAL
Clearly the months ahead will be interesting ones for stock investors.
Nonetheless, the consistent earnings growers in such diverse areas as
agriculture-biotech (Monsanto, 1.8% of the portfolio), cholesterol-reducing
drugs (Warner Lambert, 2.0%), photography (Eastman Kodak, 1.8%) and theme
parks and movies (Walt Disney, 2.0%) gives us great comfort as to the overall
performance of the Fund.
Moving forward, the continued strength of the dollar could impact the earnings
performance of these companies. Regardless, however, of the gyrations this
might cause in the short term, the long-term prospects for such stocks are
very bright indeed. As a result, we expect to continue to seek out
opportunities like these in the months ahead--in keeping with our strategy of
buying only the very best horses and sticking with them.
As of March 31, 1997, the top five holdings in the Fund's portfolio were
General Electric (2.3% of the portfolio), Disney (2.0%), Warner Lambert
(2.0%), Intel (2.0%) and Eastman Kodak (1.8%).*
- ------
* The composition of the Fund's holdings is subject to change.
AMCORE Vintage Equity Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
AMCORE Vintage S&P 500
Equity Fund Stock Index
- ------------------------------------------------------
<S> <C> <C>
12/15/92 10,000 10,000
3/31/93 10,245 10,428
3/31/94 10,291 10,579
3/31/95 11,911 12,228
3/31/96 15,480 16,146
3/31/97 18,322 19,340
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
-------------------------------
Since
Inception
1 Year 3 Year (12/15/92)
-------------------------------
<S> <C> <C> <C>
3/31/97 18.35% 21.20% 15.15%
</TABLE>
Past performance is not predictive of future results. The value of shares in
the AMCORE Vintage Mutual 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 U.S. stock market. 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 valued-added
services.
-6-
<PAGE>
PERFORMANCE REPORT AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
THE AMCORE VINTAGE BALANCED FUND
With a weighting that heavily favored stocks over bonds, the Fund benefited
handsomely as the market soared during the year ended March 31, 1997. Some
ground, of course, was lost in March as the market faltered. Technology stocks,
in particular, declined steeply--and with exposures in the sector, performance
was impacted. Nonetheless, the period overall was a very strong one for the
Fund's equity holdings.
The portfolio's fixed income holdings also contributed to performance. Given
the volatility of the environment, we approached the markets cautiously and
focused on yield enhancement. Consequently, the Fund's bond holdings were
concentrated in Treasury securities which generated solid returns as rates
seesawed up and down throughout the period. As a result, the Fund posted a
total return of 11.05%.
INTEREST RATES ARE THE KEY
As interest rates go, so go the markets--and until rates stabilize, we expect
both the stock and bond markets to be somewhat volatile. Consequently, in the
short-term, we will continue to emphasize yield enhancement in the selection of
fixed-income securities. We have also moved to reduce exposures slightly in
interest-rate sensitive stocks. For instance, holdings in companies expected to
be affected by the increase in bankruptcies and consumer credit card
delinquencies, such as Household International, have been sold.
We believe long-term, however, the prospects for both the stock and bond
markets are bright. Later in the year, we expect to see interest rates
stabilize, and we anticipate lengthening maturities in the fixed income portion
of the portfolio at that point. No other major changes are anticipated in the
allocation or structure of the portfolio, unless market opportunities are
presented.
As of March 31, 1997, approximately 63% of the Fund's assets were invested in
stocks, 32% in bonds and 5% in cash or cash equivalents. The stock portion of
the portfolio was invested in 76 different stocks. Intel (1.6% of the
portfolio), Warner Lambert (1.4%), Allied Signal (1.3%), First Union (1.3%) and
Compaq (1.2%) were among the portfolio's largest holdings. The fixed income
portion of the portfolio remained concentrated in government securities. The
average maturity of these holdings was 4.4 years; the average credit quality
was AAA.*
- ------
* The composition of the Fund's holdings is subject to change.
AMCORE Vintage Balanced Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
AMCORE Vintage 50% S&P 500
Balanced Fund Stock Index &
50% Lehman Brothers
Intermediate
Government/Corp.
Bond Index
- -------------------------------------------------------------
<S> <C> <C>
6/1/95 10,000 10,000
3/31/96 11,329 11,394
9/30/96 12,149 11,975
3/31/97 12,582 12,788
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------
Since
Inception
1 Year (6/1/95)
---------------------------
<S> <C> <C>
3/31/97 11.05% 13.33%
</TABLE>
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.
-7-
<PAGE>
PERFORMANCE REPORT AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
THE AMCORE VINTAGE FIXED INCOME FUNDS
It was a challenging, and oftentimes, a frustrating year for fixed-income
investors as the markets rallied on rumors and sold on facts. Despite all the
sound and fury, however, rates traded within a relatively narrow range
throughout the year ended March 31, 1997. Opportunities for price appreciation
were few and fleeting. Reluctant to chase rates up and down, we approached the
markets cautiously and focused our efforts on identifying opportunities to
enhance yields in our fixed-income portfolios.
As the year unfolded, many of these opportunities appeared in the Treasury and
mortgage-backed sectors--two areas that generated solid, steady returns in the
uncertain environment. As the period drew to a close, however, Treasury
securities offered investors more on a risk-adjusted basis, and consequently,
our focus concentrated here.
We're pleased to report that, while performance did lag industry averages
slightly, our caution produced positive results for the year ended March 31,
1997. Moreover, in the months ahead, we expect to see interest rates rise
slightly, stabilize and, then, perhaps even decline slightly. Concentrated in
quality securities and with maturity structures in line with industry averages,
the Funds are well positioned to take full advantage of such an environment.
THE FIXED INCOME FUND
Consumers' interest in refinancing autos, credit cards and homes dropped
dramatically as interest rates see- sawed throughout 1996. Consequently,
throughout much of the period, asset-backed securities produced steady returns.
Treasury securities, too, offered solid returns in the uncertain environment of
the period. Concentrated in such securities, the Fund produced a total return
of 3.14% for the year ended March 31, 1997.
As of March 31, 1997, approximately 21% of the portfolio's net assets were
invested in mortgage-backed and asset-backed securities, 18% in corporate
bonds, 58% in Treasury securities and Government agencies and 3% in cash or
cash equivalents. The average credit quality of these holdings was AA1; the
average maturity of the portfolio was 5 years.*
- ------
* The composition of the Fund's holdings is subject to change.
AMCORE Vintage Fixed Income Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
Lehman Brothers
AMCORE Vintage Intermediate
Fixed Income Government/Corp.
Fund Bond Index
- -------------------------------------------------------------
<S> <C> <C>
12/15/92 10,000 10,000
3/31/93 10,454 10,396
3/31/94 10,708 10,652
3/31/95 11,079 11,127
3/31/96 12,047 12,190
3/31/97 12,426 12,776
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
-------------------------------------
Since
Inception
1 Year 3 Year (12/15/92)
-------------------------------------
<S> <C> <C> <C>
3/31/97 3.14% 5.08% 5.19%
</TABLE>
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 Income Fund is measured against the
Lehman Brothers Intermediate Government/Corporate Bond Index, an unmanaged
index generally representative of the performance of intermediate-term
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.
-8-
<PAGE>
PERFORMANCE REPORT AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
THE AMCORE VINTAGE TOTAL RETURN FUND
Opportunities to enhance yield were plentiful in the corporate and asset-backed
sectors during the first half of the year ended March 31, 1997. In the latter
half of the year, anticipation of Federal Reserve action dampened investor
enthusiasm. As a result, exposures in these sectors were gradually reduced in
favor of Treasury securities as the period drew to a close. For the year ended
March 31, 1997, the Fund produced a total return of 3.13%.
At the end of the period, approximately 59% of the portfolio's assets were
invested in government agency and Treasury securities, 23% in corporate bonds,
10% in collateralized mortgage securities and 6% in cash or cash equivalents.
The average credit quality of these securities was AAA; the average maturity of
the portfolios' holdings was 4.6 years.*
- ------
*The composition of the Fund's holdings is subject to change.
AMCORE Vintage Fixed Total Return Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
Lehman Brothers
AMCORE Vintage Intermediate
Fixed Total Government/Corp.
Return Fund Bond Index
- -------------------------------------------------------------
<S> <C> <C>
6/1/95 10,000 10,000
3/31/96 10,340 10,504
9/30/96 10,460 10,758
3/31/97 10,663 11,009
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------
Since
Inception
1 Year (6/15/95)
---------------------------
<S> <C> <C>
3/31/97 3.13% 3.64%
</TABLE>
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.
-9-
<PAGE>
PERFORMANCE REPORT AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
THE AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
Like the taxable markets, the environment in the municipal markets was somewhat
uncertain throughout the year ended March 31, 1997. Light supply of securities,
however, made it more difficult for investors to chase rates. As a result, the
tax-free markets were less volatile than the taxable markets during the period.
At the same time, however, tight supply limited opportunities to enhance yield.
Nonetheless, we took advantage of such opportunities whenever and wherever they
arose throughout the year. As a result, we're pleased to report that the Fund
produced a positive return of 3.22% for the year ended March 31, 1997.
As of March 31, 1997, the portfolio was widely diversified with holdings in
some 27 different states. The average credit quality of these securities was
AA. The average maturity of the portfolio was 7.1 years.*
- ------
* The composition of the Fund's holdings is subject to change.
AMCORE Vintage Intermediate Tax-Free Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
Merill Lynch
AMCORE Vintage Intermediate
Intermediate Municipal
Tax-Free Fund Bond Index
- -------------------------------------------------------------
<S> <C> <C>
2/16/93 10,000 10,000
3/31/93 10,090 9,917
3/31/94 10,372 10,151
3/31/95 10,920 10,776
3/31/96 11,731 11,810
3/31/97 12,108 12,567
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
-------------------------------------
Since
Inception
1 Year 3 Year (2/16/93)
-------------------------------------
<S> <C> <C> <C>
3/31/97 3.22% 5.29% 4.75%
</TABLE>
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.
-10-
<PAGE>
PERFORMANCE REPORT AMCORE VINTAGE MUTUAL FUNDS
- --------------------------------------------------------------------------------
THE AMCORE VINTAGE U.S. GOVERNMENT OBLIGATIONS FUND
The year ended March 31, 1997 was a challenging one for money market investors
as interest rates vacillated within a narrow range. Consequently, we approached
the marketplace very cautiously and made no attempt to chase rates or second
guess each twist and turn.
Discount notes offered the opportunity to enhance yield and as such, were
favored throughout the period over other alternatives. Moreover, throughout the
period, maturities in the portfolio were maintained in the 35-40 day range in
an effort to increase flexibility.* As a result of our caution, the Fund
performed in line with other money funds of this type throughout the period.
SMOOTHER SAILING AHEAD
Until clear evidence of the economy's direction is apparent, we expect the
money markets to be somewhat volatile. In short, we believe that investors'
anticipation of further Federal Reserve actions will continue to roil the
environment. As a result, over the next several months, we expect to approach
the markets cautiously.
Longer-term, however, as the economy's true direction materializes, interest
rates may stabilize, and perhaps, even decline. Should rates decline, we
anticipate lengthening maturities. Other changes are subject to ongoing market
conditions and opportunities.
- ------
* The composition of the Fund's holdings is subject to change.
- --------------------------------------------------------------------------------
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 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., or its affiliates, 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.
-11-
<PAGE>
TABLE OF CONTENTS
Report of Independent Auditors
Page 13
Statements of Assets and Liabilities
Page 14
Statements of Operations
Page 16
Statements of Changes in Net Assets
Page 18
Schedules of Portfolio Investments
Page 21
Notes to Financial Statements
Page 38
Financial Highlights
Page 45
-12-
<PAGE>
REPORT OF INDEPENDENT AUDITORS AMCORE VINTAGE MUTUAL FUNDS
- -------------------------------------------------------------------------------
To the Shareholders and Trustees of
The Coventry Group--AMCORE Vintage Mutual Funds
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, 1997, 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, 1997. 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, 1997, 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 each
of the respective portfolios constituting the AMCORE Vintage Mutual Funds of
the Coventry Group as of March 31, 1997, 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, 1997, in
conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
Columbus, Ohio
May 9, 1997
-13-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1997
<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..... $128,913,300 $310,053,275 $91,723,578 $44,502,326
Repurchase agreements..... 30,447,372 -- -- --
------------ ------------ ----------- -----------
Total Investments
(amortized cost
$159,360,672; cost
$216,846,651;
$93,776,909 and
$44,680,969,
respectively)........ 159,360,672 310,053,275 91,723,578 44,502,326
Cash...................... -- 71,488 52,326 23,301
Interest and dividends
receivable................ 96,517 382,443 1,361,421 694,685
Receivable from brokers
for investments sold...... -- 6,459,577 -- --
Receivable for capital
shares issued............. -- 108,285 250 5,000
Prepaid expenses.......... 5,932 8,138 3,568 3,065
------------ ------------ ----------- -----------
Total Assets.......... 159,463,121 317,083,206 93,141,143 45,228,377
------------ ------------ ----------- -----------
LIABILITIES:
Dividends payable......... 635,579 -- -- --
Payable to brokers for
investments purchased..... -- 7,075,167 1,000,000 --
Accrued expenses and other
payables:
Investment advisory
fees................... 55,440 194,718 47,229 23,193
Administration fees..... 5,292 10,553 3,024 1,485
Administrative services
fees.................... -- 64,905 19,678 9,664
Accounting fees......... 9,695 4,848 10,587 10,393
Transfer agent fees..... 27,638 24,967 12,783 10,249
Legal fees.............. 3,066 1,431 1,339 1,097
Audit fees.............. 16,513 27,775 9,758 4,874
Custodian fees.......... 5,410 5,035 1,744 1,110
Other................... 6,283 4,789 3,800 2,405
------------ ------------ ----------- -----------
Total Liabilities..... 764,916 7,414,188 1,109,942 64,470
------------ ------------ ----------- -----------
NET ASSETS:
Paid-in capital........... 158,813,928 203,571,302 96,733,890 45,461,136
Accumulated undistributed
(distributions in excess
of)
net investment income.... (99,356) 35,473 85,621 26,578
Net unrealized
appreciation
(depreciation) on
investments.............. -- 93,206,624 (2,053,331) (178,643)
Accumulated undistributed
net realized gains
(losses)
on investment
transactions............. (16,367) 12,855,619 (2,734,979) (145,164)
------------ ------------ ----------- -----------
Net Assets.............. $158,698,205 $309,669,018 $92,031,201 $45,163,907
============ ============ =========== ===========
Outstanding units of
beneficial interest
(shares)................. 158,814,049 18,679,444 9,489,321 4,419,484
============ ============ =========== ===========
Net asset value--offering
and redemption price per
share.................... $ 1.00 $ 16.58 $ 9.70 $ 10.22
============ ============ =========== ===========
</TABLE>
See notes to financial statements.
-14-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1997
<TABLE>
<CAPTION>
AGGRESSIVE
BALANCED FIXED TOTAL GROWTH
FUND RETURN FUND FUND
----------- ------------ -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost $30,055,130;
$37,813,479; and $46,202,212,
respectively).......................... $31,969,283 $37,025,622 $49,038,995
Cash.................................... 97,594 446,875 --
Interest and dividends receivable....... 187,834 478,251 49,314
Receivable from brokers for investments
sold.................................... -- 931,563 1,022,551
Receivable for capital shares issued.... 250 656 5,271
Unamortized organization costs.......... 191 394 1,372
Prepaid expenses........................ 1,321 1,319 3,040
----------- ----------- -----------
Total Assets........................ 32,256,473 38,884,680 50,120,543
----------- ----------- -----------
LIABILITIES:
Payable to brokers for investments
purchased............................... 199,763 -- 638,350
Accrued expenses and other payables:
Investment advisory fees.............. 21,080 25,541 41,830
Administration fees................... 1,073 1,276 1,689
Administrative services fees.......... 7,027 8,514 11,008
Accounting fees....................... 399 688 694
Transfer agent fees................... 10,938 6,616 7,575
Legal fees............................ 403 136 753
Audit fees............................ 3,017 4,299 3,812
Custodian fees........................ 560 1,298 1,226
Other................................. 98 1,503 238
----------- ----------- -----------
Total Liabilities................... 244,358 49,871 707,175
----------- ----------- -----------
NET ASSETS:
Paid-in capital......................... 29,939,969 40,166,856 45,659,646
Accumulated undistributed (distributions
in excess of)
net investment income.................. (5,916) 31,618 (4,841)
Net unrealized appreciation
(depreciation) on investments.......... 1,914,153 (787,857) 2,836,783
Accumulated undistributed net realized
gains (losses)
on investment transactions............. 163,909 (575,808) 921,780
----------- ----------- -----------
Net Assets.............................. $32,012,115 $38,834,809 $49,413,368
=========== =========== ===========
Outstanding units of beneficial interest
(shares)............................... 2,730,940 4,009,571 4,153,243
=========== =========== ===========
Net asset value--offering and redemption
price per share........................ $ 11.72 $ 9.69 $ 11.90
=========== =========== ===========
</TABLE>
See notes to financial statements.
-15-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1997
<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............. $7,969,862 $ -- $ 5,731,143 $2,117,031
Dividend income............. -- 4,033,360 185,898 27,451
---------- ----------- ----------- ----------
Total Income.............. 7,969,862 4,033,360 5,917,041 2,144,482
---------- ----------- ----------- ----------
EXPENSES:
Investment advisory fees.... 602,877 1,837,312 528,149 259,581
Administration fees......... 301,439 489,951 176,050 86,527
Administrative services
fees....................... -- 612,438 220,062 108,159
Distribution and shareholder
service fees............... 376,631 612,439 220,064 108,159
Accounting fees............. 46,540 77,037 35,404 27,473
Custodian fees.............. 26,303 31,710 11,494 6,828
Legal fees.................. 10,422 11,158 4,038 2,376
Audit fees.................. 16,339 27,586 9,676 4,838
Trustees' fees and expenses. 7,895 12,154 4,717 2,269
Transfer agent fees......... 87,630 91,949 42,314 34,026
Registration and filing
fees....................... 12,747 14,937 7,616 10,801
Printing costs.............. 23,699 34,910 14,460 7,983
Other....................... 9,662 10,563 4,563 2,127
---------- ----------- ----------- ----------
Total Expenses............ 1,522,184 3,864,144 1,278,607 661,147
---------- ----------- ----------- ----------
Less: Expenses voluntarily
reduced/waived............. (376,631) (612,439) (220,064) (108,159)
---------- ----------- ----------- ----------
Net Expenses.............. 1,145,553 3,251,705 1,058,543 552,988
---------- ----------- ----------- ----------
Net Investment Income....... 6,824,309 781,655 4,858,498 1,591,494
---------- ----------- ----------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses)
from investment transac-
tions...................... -- 17,515,873 (708,174) (3,897)
Net change in unrealized
appreciation (depreciation)
from investments........... -- 39,007,591 (1,520,708) (249,407)
---------- ----------- ----------- ----------
Net realized and unrealized
gains (losses) from
investments................ -- 56,523,464 (2,228,882) (253,304)
---------- ----------- ----------- ----------
Change in net assets result-
ing from operations........ $6,824,309 $57,305,119 $ 2,629,616 $1,338,190
========== =========== =========== ==========
</TABLE>
See notes to financial statements.
-16-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
FIXED AGGRESSIVE
BALANCED TOTAL RETURN GROWTH
FUND FUND FUND
---------- ------------ ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................... $ 361,690 $2,578,154 $ 2,850
Dividend income........................... 217,705 114,679 367,676
---------- ---------- ----------
Total Income............................ 579,395 2,692,833 370,526
---------- ---------- ----------
EXPENSES:
Investment advisory fees.................. 139,017 306,666 356,135
Administration fees....................... 37,072 81,783 74,979
Administrative services fees.............. 46,339 102,222 93,720
Distribution and shareholder service fees. 46,340 102,229 93,720
Accounting fees........................... 8,388 15,731 13,894
Custodian fees............................ 5,196 6,347 7,793
Legal fees................................ 109 832 1,732
Audit fees................................ 2,992 4,259 3,550
Organization costs........................ 3,220 3,220 3,764
Trustees' fees and expenses............... 816 2,269 1,811
Transfer agent fees....................... 32,208 25,494 36,660
Registration and filing fees.............. 9,066 16,276 12,626
Printing costs............................ 2,096 6,603 4,544
Other..................................... 730 2,004 823
---------- ---------- ----------
Total Expenses.......................... 333,589 675,935 705,751
---------- ---------- ----------
Less: Expenses voluntarily reduced/waived. (46,340) (102,229) (93,720)
---------- ---------- ----------
Net Expenses............................ 287,249 573,706 612,031
---------- ---------- ----------
Net Investment Income (Loss).............. 292,146 2,119,127 (241,505)
---------- ---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from invest-
ment transactions........................ 229,926 (539,307) 1,189,580
Net change in unrealized appreciation (de-
preciation) from investments............. 643,518 (348,677) 1,285,550
---------- ---------- ----------
Net realized and unrealized gains (losses)
from investments......................... 873,444 (887,984) 2,475,130
---------- ---------- ----------
Change in net assets resulting from opera-
tions.................................... $1,165,590 $1,231,143 $2,233,625
========== ========== ==========
</TABLE>
See notes to financial statements.
-17-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND EQUITY FUND
---------------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1997 1996 1997 1996
---------------- ---------------- ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 6,824,309 $ 7,133,143 $ 781,655 $ 1,698,290
Net realized gains from
investment
transactions.......... -- 77,670 17,515,873 7,593,903
Net change in
unrealized
appreciation
(depreciation) from
investments........... -- -- 39,007,591 36,320,821
---------------- ---------------- ------------ ------------
Change in net assets
resulting from
operations............. 6,824,309 7,210,813 57,305,119 45,613,014
---------------- ---------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (6,824,309) (7,133,143) (770,677) (1,735,147)
From net realized
gains................. (98,019) -- (7,793,542) (3,191,515)
---------------- ---------------- ------------ ------------
Change in net assets
from shareholder
distributions.......... (6,922,328) (7,133,143) (8,564,219) (4,926,662)
---------------- ---------------- ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 432,771,449 473,468,676 112,226,792 60,312,936
Dividends reinvested... 1,185,207 411,236 5,670,815 3,115,399
Cost of shares
redeemed.............. (428,996,222) (458,009,749) (67,919,225) (42,397,835)
---------------- ---------------- ------------ ------------
Change in net assets
from capital
transactions........... 4,960,434 15,870,163 49,978,382 21,030,500
---------------- ---------------- ------------ ------------
Change in net assets.... 4,862,415 15,947,833 98,719,282 61,716,852
NET ASSETS:
Beginning of period.... 153,835,790 137,887,957 210,949,736 149,232,884
---------------- ---------------- ------------ ------------
End of period.......... $ 158,698,205 $ 153,835,790 $309,669,018 $210,949,736
================ ================ ============ ============
SHARE TRANSACTIONS:
Issued................. 432,771,570 473,468,676 6,780,632 4,484,471
Reinvested............. 1,185,207 411,236 345,069 229,751
Redeemed............... (428,996,222) (458,009,749) (3,010,465) (3,200,256)
---------------- ---------------- ------------ ------------
Change in shares........ 4,960,555 15,870,163 4,115,236 1,513,966
================ ================ ============ ============
</TABLE>
See notes to financial statements.
-18-
<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,
1997 1996 1997 1996
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income... $ 4,858,498 $ 4,535,780 $ 1,591,494 $ 1,487,668
Net realized losses from
investment
transactions........... (708,174) (462,154) (3,897) (5,701)
Net change in unrealized
appreciation
(depreciation) from
investments............ (1,520,708) 2,772,427 (249,407) 844,066
------------ ------------ ----------- -----------
Change in net assets
resulting from
operations.............. 2,629,616 6,846,053 1,338,190 2,326,033
------------ ------------ ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................. (4,793,251) (4,616,883) (1,588,011) (1,492,074)
------------ ------------ ----------- -----------
Change in net assets from
shareholder
distributions........... (4,793,251) (4,616,883) (1,588,011) (1,492,074)
------------ ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 24,458,873 59,265,122 11,376,829 15,884,880
Dividends reinvested.... 587,764 880,889 265,066 203,508
Cost of shares redeemed. (15,603,369) (59,296,543) (8,664,123) (5,203,326)
------------ ------------ ----------- -----------
Change in net assets from
capital transactions.... 9,443,268 849,468 2,977,772 10,885,062
------------ ------------ ----------- -----------
Change in net assets..... 7,279,633 3,078,638 2,727,951 11,719,021
NET ASSETS:
Beginning of period..... 84,751,568 81,672,930 42,435,956 30,716,935
------------ ------------ ----------- -----------
End of period........... $92,031,201 $84,751,568 $45,163,907 $42,435,956
============ ============ =========== ===========
SHARE TRANSACTIONS:
Issued.................. 2,480,499 5,921,879 1,106,061 1,538,333
Reinvested.............. 59,833 88,245 25,768 19,753
Redeemed................ (1,586,621) (5,888,472) (845,708) (506,382)
------------ ------------ ----------- -----------
Change in shares......... 953,711 121,652 286,121 1,051,704
============ ============ =========== ===========
</TABLE>
See notes to financial statements.
-19-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FIXED AGGRESSIVE
BALANCED FUND TOTAL RETURN FUND GROWTH FUND
------------------------ ------------------------ ------------------------
YEAR PERIOD YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1997 1996 (A) 1997 1996 (B) 1997 1996 (C)
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income
(loss)................ $ 292,146 $ 361,515 $ 2,119,127 $ 1,815,766 $ (241,505) $ 6,750
Net realized gains
(losses) from
investment
transactions.......... 229,926 521,878 (539,307) 30,904 1,189,580 10,757
Net change in
unrealized
appreciation
(depreciation) from
investments........... 643,518 1,270,635 (348,677) (439,180) 1,285,550 1,551,233
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
resulting from
operations............. 1,165,590 2,154,028 1,231,143 1,407,490 2,233,625 1,568,740
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (293,564) (357,568) (2,124,369) (1,784,719) -- (6,750)
In excess of net
investment income..... -- -- -- -- (4,877) (743)
From net realized
gains................. (596,340) -- -- (61,592) -- (36,273)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from shareholder
distributions.......... (889,904) (357,568) (2,124,369) (1,846,311) (4,877) (43,766)
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 20,975,187 19,462,841 13,219,052 51,163,546 28,518,330 22,338,076
Dividends reinvested... 876,475 353,573 2,000,529 1,779,986 2,073 5,263
Cost of shares
redeemed.............. (3,631,246) (8,096,861) (16,669,940) (11,326,317) (4,654,513) (549,583)
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets
from capital
transactions........... 18,220,416 11,719,553 (1,450,359) 41,617,215 23,865,890 21,793,756
----------- ----------- ----------- ----------- ----------- -----------
Change in net assets.... 18,496,102 13,516,013 (2,343,585) 41,178,394 26,094,638 23,318,730
NET ASSETS:
Beginning of period.... 13,516,013 -- 41,178,394 -- 23,318,730 --
----------- ----------- ----------- ----------- ----------- -----------
End of period.......... $32,012,115 $13,516,013 $38,834,809 $41,178,394 $49,413,368 $23,318,730
=========== =========== =========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................. 1,746,733 1,918,288 1,340,011 5,099,717 2,397,474 2,196,534
Reinvested............. 73,663 32,858 204,763 177,723 169 515
Redeemed............... (308,788) (731,814) (1,697,121) (1,115,522) (388,428) (53,021)
----------- ----------- ----------- ----------- ----------- -----------
Change in shares........ 1,511,608 1,219,332 (152,347) 4,161,918 2,009,215 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 September 29, 1995 (commencement of operations) through
March 31, 1996.
See notes to financial statements.
-20-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE U.S. GOVERNMENT OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
----------- ---------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY (74.9%):
Federal Farm Credit Bank:
$10,000,000 5.36%**, 4/24/97.................................... $ 9,966,650
10,000,000 5.34%**, 5/19/97.................................... 9,930,533
10,000,000 5.28%**, 5/23/97.................................... 9,924,889
Federal Home Loan Bank:
10,000,000 5.40%**, 4/10/97.................................... 9,986,850
10,000,000 5.36%**, 5/8/97..................................... 9,946,555
10,000,000 5.40%**, 8/7/97..................................... 9,815,467
Federal National Mortgage Assoc.:
5,000,000 5.65%*, 4/1/97...................................... 5,000,000
10,000,000 5.38%**, 5/14/97.................................... 9,937,769
10,000,000 5.37%**, 6/10/97.................................... 9,898,889
10,000,000 5.25%**, 6/13/97.................................... 9,893,542
5,000,000 5.58%**, 6/24/97.................................... 4,936,767
10,000,000 5.27%**, 7/8/97..................................... 9,856,539
10,000,000 5.33%**, 7/21/97.................................... 9,841,517
------------
Total U.S. Government Agency 118,935,967
------------
U.S. TREASURY BILLS (6.3%):
10,000,000 5.23%**, 4/17/97.................................... 9,977,333
------------
Total U.S. Treasury Bills 9,977,333
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
----------- --------------------------------------------------- ------------
<C> <S> <C>
REPURCHASE AGREEMENTS (19.2%):
$15,447,372 Bear Stearns, 6.25%, 4/1/97 (Purchased on 3/31/97,
proceeds at maturity $15,450,054; Collateralized
by $41,285,000 U.S. Treasury Strips,
6/19/97--8/15/22,
market value $15,860,240)......................... $ 15,447,372
15,000,000 Merrill Lynch, 6.20%*, 4/1/97 (Purchased on 2/4/97,
Collateralized by $73,225,000 U.S. Treasury
Strips, 11/15/18, market value $15,309,884)....... 15,000,000
------------
Total Repurchase Agreements 30,447,372
------------
Total (Cost--$159,360,672) (a) $159,360,672
============
</TABLE>
- ------
Percentages indicated are based on net assets of $158,698,205.
(a) Amortized cost also represents cost for federal income tax purposes.
* Variable rate security. Interest rate is as of March 31, 1997. Maturity date
reflects the next rate change date.
** Effective yield at date of purchase.
See notes to financial statements
-21-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
COMMON STOCKS (98.8%):
Aerospace/Defense (2.6%):
30,000 Boeing Co. ........................................... $ 2,958,750
116,000 Sundstrand Corp. ..................................... 5,031,500
------------
7,990,250
------------
Banking (7.9%):
50,000 BankAmerica Corp. .................................... 5,037,500
10,000 Bankers Trust New York Corp. ......................... 820,000
56,000 Barnett Banks, Inc. .................................. 2,604,000
40,000 First Union Corp. .................................... 3,245,000
30,000 Mellon Bank Corp. .................................... 2,182,500
86,000 NationsBank Corp. .................................... 4,762,250
80,000 Norwest Corp. ........................................ 3,700,000
38,000 Wachovia Corp. ....................................... 2,071,000
------------
24,422,250
------------
Beverages--Soft Drinks (2.3%):
55,000 Coca-Cola Co. ........................................ 3,073,125
120,000 PepsiCo, Inc. ........................................ 3,915,000
------------
6,988,125
------------
Capital Goods (1.2%):
70,000 Fluor Corp. .......................................... 3,675,000
------------
Chemicals (2.9%):
90,000 Avery Dennison Corp. ................................. 3,465,000
145,000 Monsanto Co. ......................................... 5,546,250
------------
9,011,250
------------
Computer--Hardware (2.1%):
80,000 Cisco Systems, Inc. (b)............................... 3,850,000
35,000 Compaq Computer Corp. (b)............................. 2,681,875
------------
6,531,875
------------
Computer--Software & Peripherals (0.8%):
25,000 Microsoft (b)......................................... 2,292,188
------------
Consumer Goods & Services (6.6%):
36,000 Colgate Palmolive Co. ................................ 3,586,500
110,000 CUC International, Inc. (b)........................... 2,475,000
72,000 Gillette Co. ......................................... 5,229,000
40,000 Kimberly-Clark Corp. ................................. 3,975,000
45,000 Procter & Gamble Co. ................................. 5,175,000
------------
20,440,500
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Defense (1.6%):
110,000 Raytheon Co. ......................................... $ 4,963,750
------------
Diversified Operations (5.7%):
73,000 AlliedSignal, Inc. ................................... 5,201,250
80,000 Corning, Inc. ........................................ 3,550,000
38,000 Minnesota Mining & Manufacturing Co. ................. 3,211,000
50,300 Textron, Inc. ........................................ 5,281,500
------------
17,243,750
------------
Electrical & Electronic (7.9%):
112,000 Emerson Electric Co. ................................. 5,040,000
72,400 General Electric Co. ................................. 7,185,700
53,000 Honeywell, Inc. ...................................... 3,597,375
60,000 Rockwell International................................ 3,892,500
90,000 Varian Associates, Inc. .............................. 4,815,000
------------
24,530,575
------------
Electronic Equipment & Components (1.6%):
40,000 AMP, Inc. ............................................ 1,375,000
64,000 Avnet, Inc. .......................................... 3,608,000
------------
4,983,000
------------
Entertainment (2.0%):
86,000 Walt Disney Co. ...................................... 6,278,000
------------
Financial Services (5.1%):
$160,000 Federal Home Loan Mortgage
Corp. ............................................... 4,360,000
114,800 Fannie Mae............................................ 4,147,150
110,000 First Data Corp. ..................................... 3,726,250
110,000 Green Tree Financial Corp. ........................... 3,712,500
------------
15,945,900
------------
Food Processing (1.0%):
55,000 ConAgra, Inc. ........................................ 2,983,750
------------
Food Products & Services (0.7%):
60,000 Albertson, Inc. ...................................... 2,040,000
------------
Health Care (2.6%):
100,000 Baxter International, Inc. ........................... 4,312,500
170,000 MedPartners, Inc. (b)................................. 3,612,500
------------
7,925,000
------------
</TABLE>
Continued
-22-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Home Furnishing (1.4%):
130,000 Newell Co. ........................................... $ 4,355,000
------------
Insurance (3.0%):
50,000 Allstate Corp. ....................................... 2,968,750
34,750 American International Group, Inc. ................... 4,078,781
15,000 General Re Corp. ..................................... 2,370,000
------------
9,417,531
------------
Machinery & Equipment (1.4%):
100,000 Deere & Co. .......................................... 4,350,000
------------
Medical Equipment & Supplies (1.4%):
72,000 Medtronic, Inc. ...................................... 4,482,000
------------
Newspaper & Publishing (1.8%):
28,000 Gannett, Inc. ........................................ 2,404,500
80,000 Tribune Co. .......................................... 3,240,000
------------
5,644,500
------------
Oil & Gas Exploration, Production & Services (4.0%):
35,000 Amoco Corp. .......................................... 3,031,875
25,000 Anadarko Petroleum Corp. ............................. 1,403,125
50,000 Enron Oil & Gas....................................... 1,037,500
80,000 Global Marine, Inc. (b)............................... 1,720,000
19,000 Mobil Corp. .......................................... 2,481,875
25,500 Schlumberger Ltd. .................................... 2,734,875
------------
12,409,250
------------
Pharmaceuticals (13.5%):
58,000 Abbott Laboratories................................... 3,255,250
50,000 Agouron Pharmaceuticals, Inc. (b)..................... 3,531,250
92,400 American Home Products Corp. ......................... 5,544,000
80,000 Amgen, Inc. (b)....................................... 4,470,000
60,000 Bristol-Myers Squibb Co. ............................. 3,540,000
60,000 Lilly (Eli) & Co. .................................... 4,935,000
45,000 Merck & Co., Inc. .................................... 3,791,250
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals, continued:
100,000 Mylan Laboratories.................................... $ 1,462,500
62,800 Pfizer, Inc. ......................................... 5,283,050
71,000 Warner Lambert Co. ................................... 6,141,500
------------
41,953,800
------------
Photographic Proucts (1.8%):
75,000 Eastman Kodak Co. .................................... 5,690,625
------------
Retail--General Merchandise (2.3%):
80,000 May Department Stores Co. ............................ 3,640,000
70,000 Sears Roebuck & Co. .................................. 3,517,500
------------
7,157,500
------------
Retail--Specialty Stores (4.2%):
80,000 Fastenal Co. ......................................... 2,800,000
78,500 Home Depot, Inc. ..................................... 4,199,750
150,000 Staples, Inc. (b)..................................... 3,018,750
70,000 Walgreen Co. ......................................... 2,931,250
------------
12,949,750
------------
Semiconductors (3.2%):
44,000 Intel Corp. .......................................... 6,121,500
80,000 Xilinx, Inc. (b)...................................... 3,900,000
------------
10,021,500
------------
Telecommunication (4.8%):
40,000 AirTouch Communications, Inc. (b)..................... 920,000
58,000 Ameritech Corp. ...................................... 3,567,000
70,000 BellSouth Corp. ...................................... 2,957,500
90,000 GTE Corp. ............................................ 4,196,250
150,000 WorldCom, Inc. (b).................................... 3,300,000
------------
14,940,750
------------
Telecommunications--Services & Equipment (1.4%):
80,972 Lucent Technologies................................... 4,271,273
------------
Total Common Stocks 305,888,642
------------
</TABLE>
Continued
-23-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
INVESTMENT COMPANIES (1.3%):
4,164,633 AMCORE Vintage U.S. Government Obligation Fund........ $ 4,164,633
------------
Total Investment Companies 4,164,633
------------
Total (Cost--$216,846,651) (a) $310,053,275
============
</TABLE>
- ------
Percentages indicated are based on net assets of $309,669,018.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$3,125. Cost for federal income tax purposes differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................. $97,741,677
Unrealized deprecia-
tion................. (4,538,178)
-----------
Net unrealized appre-
ciation.............. $93,203,499
===========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-24-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
COLLATERAL MORTGAGE OBLIGATION (22.7%):
Farmer Mac:
$2,495,000 7.59%, 1/25/02...................................... $ 2,499,678
Federal Home Loan Mortgage Corp.:
2,000,000 6.25%, 12/15/06..................................... 1,940,620
2,227,380 6.50%, 10/15/21..................................... 2,162,295
Federal National Conventional Loan:
1,904,914 7.50%, 7/1/16....................................... 1,893,275
Federal National Mortgage Assoc.:
2,611,001 7.00%, 8/25/06...................................... 2,619,147
926,031 6.60%, 4/25/17...................................... 918,502
Green Tree Financial Corp.:
2,000,000 7.30%, 1/15/28...................................... 1,948,750
IMC Home Equity Loan:
2,000,000 7.11%, 8/25/14...................................... 1,952,300
Prudential Home Mortgage Securities:
2,914,782 7.15%, 3/25/24...................................... 2,814,571
Ryland Mortgage Securities Corp.:
2,174,912 7.50%, 8/25/24...................................... 2,163,341
------------
Total Collateral Mortgage Obligation 20,912,479
------------
CORPORATE BONDS (19.5%):
Automobiles (2.1%):
2,000,000 Olympic Auto, 6.25%, 11/15/04....................... 1,946,340
------------
Banking (3.7%):
500,000 Chase Manhattan Corp., 8.80%, 2/1/00................ 500,900
500,000 Chase Manhattan Corp., 9.05%, 2/1/02................ 504,505
1,000,000 First Union Corp., 7.05%, 8/1/05.................... 969,870
1,000,000 NationsBank Corp., 6.63%, 1/15/98................... 1,003,140
500,000 Northern Trust Co., 6.50%, 5/1/03................... 477,845
------------
3,456,260
------------
Utilities--Electric (1.6%):
250,000 Central Power & Light Co., 6.63%, 1/1/98............ 250,028
1,000,000 Florida Power & Light, 6.88%, 4/1/04, callable
4/1/98 @ 102....................................... 958,020
250,000 Sierra Pacific Power Co., 6.50%, 7/1/97............. 250,125
------------
1,458,173
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services (5.9%):
$1,000,000 Associates Corp., 7.50%, 4/15/02..................... $ 1,013,330
1,000,000 Commercial Credit Corp., 6.88%, 5/1/02............... 984,270
500,000 Ford Motor Credit Corp., 7.50%, 1/27/03.............. 504,785
1,000,000 Norwest Financial, Inc., 7.50%, 4/15/05.............. 1,008,250
1,000,000 Smith Barney, 6.88%, 6/15/05......................... 958,330
1,000,000 Travelers/Aetna, 6.75%, 4/15/01...................... 988,980
------------
5,457,945
------------
Home Furnishing (1.0%):
1,000,000 Newell Co., 6.40%, 6/10/02........................... 956,830
------------
Industrial Goods & Services (1.4%):
1,000,000 Du Pont (E. I.) de Nemours & Co., 6.42%, 11/20/97.... 1,002,450
250,000 Du Pont (E. I.) de Nemours & Co., 8.65%, 12/1/97..... 253,773
------------
1,256,223
------------
Restaurants (0.3%):
218,889 Secured Restaurant Trust, 10.25%, 11/15/00........... 233,226
------------
Retail Stores (0.6%):
500,000 Sears Roebuck & Co., 8.02%, 12/28/98................. 511,205
------------
Telecommunications (2.9%):
250,000 AT&T Corp., 8.20%, 2/15/05, callable 2/15/00 @ 100... 257,188
1,000,000 GTE Florida, Inc., 6.25%, 11/15/05................... 926,900
500,000 Hawaiian Telephone, 8.00%, 9/1/01.................... 500,160
1,000,000 United Telephone Co. of Florida, 7.25%, 12/15/04..... 993,680
------------
2,677,928
------------
Total Corporate Bonds 17,954,130
------------
MUNICIPAL BONDS (2.1%):
Michigan (1.0%):
1,000,000 Detroit Michigan Building Authority, 6.60%, 7/1/03... 972,230
------------
</TABLE>
Continued
-25-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Wisconsin (1.1%):
$1,000,000 Wisconsin Housing, 7.98%, 3/1/21, callable 3/1/07 @
102................................................. $ 1,000,000
-----------
Total Municipal Bonds 1,972,230
-----------
U.S. GOVERNMENT AGENCIES (18.0%):
Federal Home Loan Banks:
2,000,000 5.51%*, 4/16/97...................................... 1,995,620
500,000 8.05%, 5/27/04, callable 5/27/97
@ 100............................................... 498,985
Federal Home Loan Mortgage Corp.:
1,250,000 7.05%, 3/24/04, callable 3/24/97
@ 100............................................... 1,218,950
500,000 8.05%, 5/19/04, callable 5/19/97
@ 100............................................... 498,830
Federal National Mortgage Assoc.:
3,000,000 5.41%*, 4/3/97....................................... 2,999,112
2,000,000 6.57%, 8/10/00, callable 8/10/98
@ 100............................................... 1,976,240
2,000,000 6.83%, 4/2/03, callable 4/2/99
@ 100............................................... 1,920,620
2,500,000 7.41%, 8/17/05, callable 8/17/98
@ 100............................................... 2,497,900
1,000,000 8.00%, 6/21/06, callable 6/21/99
@ 100............................................... 1,001,250
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
$2,000,000 7.50%, 11/15/06, callable 11/15/99
@ 100................................................ $ 1,964,060
-----------
Total U.S. Government Agencies 16,571,567
-----------
U.S. TREASURY NOTES (34.0%):
1,500,000 6.38%, 6/30/97........................................ 1,503,045
1,500,000 7.88%, 1/15/98........................................ 1,521,090
1,000,000 7.13%, 10/15/98....................................... 1,011,410
3,000,000 6.75%, 6/30/99........................................ 3,015,480
1,000,000 6.88%, 8/31/99........................................ 1,007,340
3,500,000 6.38%, 1/15/00........................................ 3,483,585
1,500,000 6.25%, 5/31/00........................................ 1,483,125
2,000,000 6.13%, 9/30/00........................................ 1,965,620
4,000,000 6.25%, 2/15/03........................................ 3,891,240
3,000,000 6.50%, 5/15/05........................................ 2,919,360
5,000,000 5.88%, 11/15/05....................................... 4,657,050
5,000,000 6.50%, 10/15/06....................................... 4,844,550
-----------
Total U.S. Treasury Notes 31,302,895
-----------
INVESTMENT COMPANIES (3.3%):
3,010,277 AMCORE Vintage U.S. Government Obligation Fund........ 3,010,277
-----------
Total Investment Companies 3,010,277
-----------
Total (Cost--$93,776,909) (a) $91,723,578
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $92,031,201.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$32,628. Cost for federal income tax purposes differs from market value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................ $ 37,363
Unrealized deprecia-
tion................ (2,123,322)
-----------
Net unrealized depre-
ciation............. $(2,085,959)
===========
</TABLE>
* Effective yield at date of purchase.
See notes to financial statements.
-26-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS (97.4%):
Alaska (3.1%):
$ 400,000 Alaska Student Loan Corp. Revenue Bonds, 5.13%,
7/1/02.............................................. $ 399,148
1,000,000 Alaska Student Loan Corp. Revenue Bonds, 5.63%,
7/1/07, callable 7/1/05 @ 100....................... 1,001,540
-----------
1,400,688
-----------
California (1.1%):
500,000 Sacramento City Financing Authority, Lease Revenue
Refunding-Series A, AMBAC Indemnity Corp.,
5.05%, 11/1/06...................................... 499,980
-----------
Delaware (1.1%):
500,000 Sussex County, GO, 4.90%, 10/15/01, callable 4/15/00
@ 101............................................... 503,225
-----------
Florida (4.4%):
500,000 Florida School Boards Assoc., Lease Revenue, 6.75%,
7/1/04, callable 7/1/00 @ 100....................... 521,935
500,000 Jacksonville, Electric Authority Revenue, Refunding,
Saint Johns River, Issue 2, Series 8, 5.13%,
10/1/07, callable 10/1/02 @ 101 & 10/1/03 @ 103..... 496,595
500,000 Martin County, Florida, GO, 4.25%, 2/1/01............ 490,620
500,000 State of Florida Board of Education, GO, 5.16%,
6/1/05.............................................. 503,115
-----------
2,012,265
-----------
Georgia (3.3%):
1,000,000 Atlanta, GO, 5.00%, 12/1/07, callable 12/1/06 @ 100.. 985,320
500,000 Atlanta Revenue Bonds, 5.75%, 1/1/08................. 510,280
-----------
1,495,600
-----------
Hawaii (2.1%):
1,000,000 Hawaii St. Refunding, GO, Series CI, 4.70%, 11/1/07.. 954,010
-----------
Idaho (1.1%):
500,000 Meridian Joint School District #2, Idaho, GO, 5.00%,
7/30/03............................................. 505,100
-----------
Illinois (20.0%):
200,000 Cherry Valley GO, 6.60%, 1/1/01...................... 212,104
500,000 Chicago Illinois Metropolitan Water Capital
Improvement, GO, 5.00%, 12/1/02..................... 503,400
500,000 Chicago Illinios Metroplitan Water Capital
Improvement, GO, 5.25, 12/1/04...................... 507,210
500,000 Chicago O'Hare International Airport, 6.38%, 1/1/04,
callable 1/1/02 @ 102 and 1/1/03 @ 101.............. 532,235
500,000 Illinois Development Finance Authority Revenue School
District #46, 5.25%, 1/1/06......................... 502,045
400,000 Illinois Health Facilities Authority Revenue. MBIA,
4.90%, 11/15/03..................................... 397,080
500,000 Illinios Housing Development Authority, 5.10%,
7/1/02.............................................. 502,795
465,000 Illinois Housing Development Authority, Single Family
Mortgage Revenue, 6.50%, 2/1/09..................... 488,734
1,000,000 Illinois State Sales Tax Revenue, Series S, 5.00%,
6/15/09............................................. 959,320
300,000 Illinois Student Assistance Commission, Student Loan
Revenue, Series M, GSL, 6.30%, 3/1/03............... 312,117
500,000 Kane County Motor Fuel Transport Tax Revenue, 5.40%,
3/1/06, callable 3/1/01 @ 102.50.................... 505,615
500,000 Kane County Public Building C, Elgin Community
College 509-B, 5.75%, 12/1/10....................... 504,340
1,000,000 Kendall & Kane Counties CSD #115 Yorkville, 5.65%,
1/1/08, callable 1/1/07 @100........................ 1,015,790
300,000 Metropolitan Pier & Exposition Authority, State Tax
Revenue, 5.20%, 6/15/99............................. 303,651
</TABLE>
Continued
-27-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
$ 500,000 Northwest Water Community Cook & Lake Counties, Water
Revenue, 4.90%, 5/1/07.............................. $ 482,390
400,000 Sangamon County, Certificate of Participation, 6.40%,
12/1/00............................................. 419,472
100,000 Sterling Hospital Revenue, CGH Medical Center
Project, 5.65%, 5/1/99.............................. 100,991
250,000 Winnebago County, School District 122, GO, 5.75%,
6/1/01.............................................. 259,810
500,000 Winnebago & Boone Counties, Rockford School District
Number 205, School Bonds, Series 1992 C,
5.25%, 2/1/01....................................... 508,460
-----------
9,017,559
-----------
Indiana (8.0%):
1,000,000 Evansville, Building Authority, 5.30%, 8/1/08........ 993,870
500,000 Indiana Bond Bank (Elkhart Water/Sewer Refunding
Bonds), 5.55%, 11/1/10, callable 11/1/04 @ 102...... 493,320
1,000,000 Indianapolis Public Transportation, 6.00%, 7/1/10,
callable 7/1/03 @ 102............................... 1,029,360
1,000,000 Kokomo-Center, School Building Corp., 6.75%, 7/15/04. 1,098,020
-----------
3,614,570
-----------
Iowa (4.6%):
300,000 Ames, Iowa Electric Revenue, 5.20%, 1/1/05, callable
1/1/02 @ 100........................................ 300,852
500,000 Iowa City GO, 5.00%, 6/1/04, callable 6/1/02 @ 100... 502,225
500,000 Iowa State Certificate of Participation, 6.50%,
7/1/06, callable 7/1/02 @ 102 & 7/1/04 @ 100........ 537,355
500,000 Iowa Student Loan, 5.75%, 12/1/06.................... 497,760
250,000 Iowa Student Loan Liquidity Corp., Series A, 5.35%,
12/1/02............................................. 253,760
-----------
2,091,952
-----------
Massachusetts (2.2%):
500,000 Massachusetts Bay Transportation Authority, 5.30%,
3/1/08, callable 3/1/06 @ 101....................... 497,845
500,000 Massachusetts Education Loan Authority, 5.60%,
7/1/06, callable 7/1/05 @ 102....................... 502,100
-----------
999,945
-----------
Michigan (3.3%):
1,000,000 Grand Ledge, Michigan Public School District, 5.25%,
5/1/09,............................................. 992,010
500,000 Kent County, Michigan Building Authority, 4.80%,
12/1/04............................................. 495,545
-----------
1,487,555
-----------
Minnesota (3.4%):
500,000 Minneapolis, GO, 4.75%, 9/1/02....................... 500,215
500,000 Minneapolis Special School District, 5.00%, 2/1/05... 497,090
520,000 Ramsey County, 5.60%, 12/1/05, callable 12/1/04 @
100................................................. 538,288
-----------
1,535,593
-----------
Mississippi (0.8%):
350,000 Mississippi Higher Education, SR Series B, 5.25%,
9/1/01.............................................. 350,255
-----------
Nevada (2.9%):
300,000 Clark County Revenue Bonds, 5.40%, 7/1/03............ 303,300
500,000 Clark County, Sanitation District, 5.60%, 7/1/07,
callable 7/1/03 @ 101............................... 509,540
500,000 State of Nevada, 4.40%, 11/1/01...................... 491,920
-----------
1,304,760
-----------
</TABLE>
Continued
-28-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New Jersey (2.2%):
$ 500,000 New Jersey State Transportation Trust, 5.00%,
6/15/06............................................. $ 495,600
500,000 New Jersey Wastewater Treatment Trust, Series A,
4.80%, 9/1/06....................................... 491,365
-----------
986,965
-----------
New Mexico (2.2%):
500,000 Albuquerque School District #12, 5.30%, 8/1/08,
callable 8/1/03 @ 100............................... 499,120
500,000 New Mexico Educational Assistance, 5.75%, 8/1/07..... 499,955
-----------
999,075
-----------
Ohio (0.4%):
200,000 Student Loan Funding Corp., Series C, 5.50%, 12/1/01. 202,772
-----------
Rhode Island (1.7%):
500,000 Rhode Island State, 4.90%, 6/15/04................... 496,375
250,000 Rhode Island State Construction, Capital Development
Loan, Series B, 6.00%, 5/15/99...................... 257,138
-----------
753,513
-----------
South Dakota (1.1%):
500,000 South Dakota Student Loan, 5.85%, 8/1/00............. 511,630
-----------
Tennessee (2.2%):
1,000,000 Metropolitan Government Nashville & Davidson
Counties, 5.50%, 7/1/08, callable 7/1/06 @ 101...... 1,015,000
-----------
Texas (5.0%):
500,000 Austin, Airport Revenue, 5.50%, 11/15/06............. 505,925
500,000 Dallas Water & Sewer, 4.90%, 4/1/04, callable 4/1/03
@ 100............................................... 496,785
200,000 Houston, Water & Sewer System, Series C, MBIA, 5.25%,
12/1/00............................................. 203,786
1,000,000 San Antonio, Series A, GO, 6.00%, 8/1/08............. 1,066,890
-----------
2,273,386
-----------
Utah (1.2%):
500,000 Salt Lake County, 5.50%, 12/15/04.................... 520,000
-----------
Virginia (2.7%):
500,000 Fairfax County, Series A, 4.90%, 6/1/03, callable
6/1/00 @ 100.75..................................... 501,815
195,000 Virginia Educational Loan Authority, Series E, 5.50%,
3/1/01.............................................. 200,023
500,000 Virginia State Housing Development Authority, 5.10%,
7/1/06, callable 1/1/02 @ 102....................... 494,880
-----------
1,196,718
-----------
Washington (7.0%):
800,000 Grant County, Washington Public Utilities Hydro-
Electric, 5.60%, 1/1/10, callable 1/1/08 @ 100...... 800,560
310,000 King County, Public Hospital, Facility Revenue, AMBAC
Indemnity Corporation, 5.70%, 9/1/01................ 320,475
500,000 Seattle, Water System Revenue, 4.70%, 12/1/00........ 499,970
500,000 Tacoma, Electric System Revenue, 5.50%, 1/1/12,
callable 1/1/02 @ 100............................... 491,045
500,000 Washington State, 6.80%, 10/1/02, callable 10/1/99 @
100................................................. 525,820
500,000 Washington State GO, 5.35%, 9/1/06, callable 9/1/05 @
100................................................. 506,395
-----------
3,144,265
-----------
</TABLE>
Continued
-29-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE INTERMEDIATE TAX-FREE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Wisconsin (9.7%):
$ 500,000 City of Beloit, Sewer System Revenue Bond, 4.80%,
7/1/05.............................................. $ 488,975
500,000 Franklin Public School District, 4.75%, 4/1/04....... 490,095
500,000 Green Bay Area Public Schools, 4.40%, 4/1/02......... 488,640
400,000 Kenosha, Series A, 4.90%, 4/1/99..................... 402,876
500,000 Madison, 5.00%, 4/1/05............................... 498,370
500,000 Milwaukee, 5.15%, 11/15/08........................... 507,225
500,000 Sturgeon Bay Combined Utility, 4.90%, 1/1/06......... 489,315
500,000 Wisconsin Housing & Economic Development Authority,
Housing Revenue, 4.70%, 11/1/99..................... 500,075
500,000 Wisconsin Housing & Economic Development Authority,
Series B, 5.20%, 11/1/06, callable 10/1/03 @ 102.... 495,515
-----------
4,361,086
-----------
Wyoming (0.6%):
250,000 Cheyenne, GO Unlimited, 5.45%, 12/1/01............... 256,915
-----------
Total Municipal Bonds 43,994,382
-----------
INVESTMENT COMPANIES (1.1%):
507,944 Bankers Trust Tax Free Money Fund.................... 507,944
-----------
Total Investment Companies 507,944
-----------
Total (Cost--$44,680,969) (a) $44,502,326
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $45,163,907.
(a) Represents cost for federal tax purposes and differs from value by net
unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized
appreciation........... $ 209,410
Unrealized
depreciation........... (388,053)
---------
Net unrealized
depreciation........... $(178,643)
=========
</TABLE>
AMBAC--American Municipal Bond Assurance Corporation.
CSD--Central School District.
GO--General Obligation.
GSL--Guaranteed Student Loans.
MBIA--Municipal Bond Insurance Association.
See notes to financial statements.
-30-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS (62.9%):
Aerospace/Defense (0.9%):
6,500 Sundstrand Corp........................................ $ 281,938
-----------
Automotive Parts & Equipment (0.8%):
7,500 Lear Corp. (b)......................................... 250,313
-----------
Banking (3.6%):
3,000 BankAmerica Corp....................................... 302,250
2,500 Barnett Banks, Inc..................................... 116,250
5,000 First Union Corp....................................... 405,625
6,000 NationsBank Corp....................................... 332,250
-----------
1,156,375
-----------
Beverages--Soft Drinks (1.2%):
12,000 PepsiCo, Inc........................................... 391,500
-----------
Business Services (0.3%):
6,000 Olsten Corp............................................ 96,750
-----------
Capital Goods (0.9%):
5,500 Fluor Corp............................................. 288,750
-----------
Chemicals (2.4%):
2,500 Air Products & Chemical................................ 169,688
2,500 Du Pont (E. I.) de Nemours & Co........................ 265,000
8,500 Monsanto Co............................................ 325,125
-----------
759,813
-----------
Computer Hardware (3.8%):
7,000 3Com Corp. (b)......................................... 229,250
6,500 Cisco Systems, Inc. (b)................................ 312,812
5,200 Compaq Computer Corp. (b).............................. 398,450
4,000 Hewlett Packard Co..................................... 213,000
2,200 Sun Microsystems, Inc. (b)............................. 63,525
-----------
1,217,037
-----------
Computer--Software & Peripherals (2.1%):
8,500 Computer Associates
International, Inc.................................... 330,437
2,600 Microsoft (b).......................................... 238,388
3,000 Oracle Corp (b)........................................ 115,687
-----------
684,512
-----------
Computer Services (0.8%):
6,600 Electronic Data Systems Corp........................... 266,475
-----------
Consumer Goods & Services (3.5%):
13,500 CUC International, Inc. (b)............................ 303,750
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Goods & Services, continued:
3,700 Gillette Co............................................ $ 268,713
2,500 Kimberly-Clark Corp.................................... 248,437
2,600 Procter & Gamble Co.................................... 299,000
-----------
1,119,900
-----------
Defense (0.6%):
4,000 Raytheon Co............................................ 180,500
-----------
Diversified Operations (1.3%):
5,700 AlliedSignal, Inc...................................... 406,125
-----------
Electronics--Semiconductors (0.8%):
7,000 Adaptec, Inc. (b)...................................... 250,250
-----------
Electrical & Electronics (2.9%):
7,000 Emerson Electric Co.................................... 315,000
3,000 General Electric Co.................................... 297,750
5,000 Rockwell International................................. 324,375
-----------
937,125
-----------
Entertainment (0.7%):
3,000 Walt Disney Co......................................... 219,000
-----------
Financial Services (4.6%):
10,000 Fannie Mae............................................. 361,250
9,000 First Data Corp........................................ 304,875
8,000 Green Tree Financial Corp.............................. 270,000
5,000 Travelers Group, Inc................................... 239,375
5,000 Reuters Holding plc--Sponsored ADR..................... 290,937
-----------
1,466,437
-----------
Food Products & Services (0.7%):
7,000 Albertsons, Inc........................................ 238,000
-----------
Food Wholesale (0.9%):
8,500 Sysco Corp............................................. 290,063
-----------
Health Care (1.7%):
3,000 Health Care & Retirement Corp. (b)..................... 86,250
5,500 Lincare Holdings, Inc. (b)............................. 226,875
11,000 MedPartners, Inc. (b).................................. 233,750
-----------
546,875
-----------
Health Care Products & Services (0.5%):
3,200 Shared Medical Systems Corp............................ 148,800
-----------
</TABLE>
Continued
-31-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Home Furnishing (0.9%):
8,500 Newell Co.............................................. $ 284,750
-----------
Insurance (3.3%):
5,500 Allstate Corp.......................................... 326,562
2,450 American International Group, Inc...................... 287,569
1,200 General Re Corp........................................ 189,600
3,500 MGIC Investment Corp................................... 247,625
-----------
1,051,356
-----------
Manufacturing--Capital Goods (0.8%):
7,000 Diebold, Inc........................................... 263,375
-----------
Medical Equipment & Supplies (1.2%):
6,000 Medtronic, Inc......................................... 373,500
-----------
Newspaper & Publishing (2.3%):
4,000 Gannett, Inc........................................... 343,500
5,000 New York Times Co.--Class A............................ 220,625
4,000 Tribune Co............................................. 162,000
-----------
726,125
-----------
Oil & Gas Exploration, Production & Services (4.1%):
2,000 Amoco Corp............................................. 173,250
3,500 Ensco International.................................... 172,375
2,500 Mobil Corp............................................. 326,562
3,500 Schlumberger Ltd....................................... 375,375
5,500 Tidewater, Inc......................................... 253,000
-----------
1,300,562
-----------
Health Care--Drugs (6.2%):
3,000 Abbott Laboratories.................................... 168,375
2,500 Agouron Pharmaceuticals, Inc. (b)...................... 176,562
3,500 Amgen, Inc. (b)........................................ 195,563
3,500 Lilly (Eli) & Co....................................... 287,875
4,000 Merck & Co., Inc....................................... 337,000
4,500 Pfizer, Inc............................................ 378,562
5,000 Warner Lambert Co...................................... 432,500
-----------
1,976,437
-----------
Photographic Products (1.0%):
4,400 Eastman Kodak Co....................................... 333,850
-----------
Retail Stores/Catalog (0.6%):
9,500 Viking Office Products, Inc. (b)....................... 184,063
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail--General Merchandise (1.8%):
7,000 Federated Department Stores, Inc. (b).................. $ 230,125
8,000 Kohl's Corp. (b)....................................... 339,000
-----------
569,125
-----------
Retail--Specialty Stores (2.1%):
4,000 Lowe's Cos., Inc....................................... 149,500
15,000 Staples, Inc. (b)...................................... 301,875
5,600 Walgreen Co............................................ 234,500
-----------
685,875
-----------
Semiconductors (1.5%):
3,600 Intel Corp............................................. 500,850
-----------
Telecommunications (1.0%):
1,500 Ameritech Corp......................................... 92,250
5,000 GTE Corp............................................... 233,125
-----------
325,375
-----------
Telecommunication--Services & Equipment (1.1%):
7,000 Lucent Technologies.................................... 369,250
-----------
Total Common Stocks 20,141,031
-----------
CORPORATE BONDS (1.5%):
Financial Services (0.7%):
$250,000 GMAC, 6.50%, 12/5/05................................... 234,605
-----------
Telecommunications (0.8%):
250,000 AT&T Corp., 7.00%, 5/15/05............................. 244,483
-----------
Total Corporate Bonds 479,088
-----------
U.S. GOVERNMENT AGENCIES (4.7%):
Federal Home Loan Bank:
500,000 5.51%*, 4/16/97........................................ 498,905
-----------
Federal National Mortgage Assoc.:
1,000,000 5.41%*, 4/3/97......................................... 999,704
-----------
Total U.S. Government Agencies 1,498,609
-----------
U.S. TREASURY NOTES (25.8%):
500,000 6.00%, 11/30/97........................................ 500,155
1,500,000 6.00%, 5/31/98......................................... 1,496,490
1,000,000 6.38%, 7/15/99......................................... 997,500
1,000,000 6.38%, 1/15/00......................................... 995,310
1,000,000 6.25%, 5/31/00......................................... 988,750
</TABLE>
Continued
-32-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. TREASURY NOTES, CONTINUED:
$1,000,000 6.25%, 2/15/03........................................ $ 972,810
2,000,000 5.88%, 11/15/05....................................... 1,862,820
500,000 5.63%, 2/15/06........................................ 456,720
-----------
Total U.S. Treasury Notes 8,270,555
-----------
INVESTMENT COMPANIES (4.7%):
1,500,000 AMCORE Vintage U.S. Government Obligation Fund........ 1,500,000
-----------
Total Investment Companies 1,500,000
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
DEMAND DEPOSITS (0.2%):
$80,000 Money Over Night Instrument (Moni), 6.57%, 4/1/97...... $ 80,000
-----------
Total Demand Depostits 80,000
-----------
Total (Cost--$30,055,130) (a) $31,969,283
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $32,012,115.
(a) Represents cost for federal tax purposes and differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................. $ 3,077,950
Unrealized deprecia-
tion................. (1,163,797)
-----------
Net unrealized appre-
ciation.............. $ 1,914,153
===========
</TABLE>
(b) Represents non-income producing securities.
* Effective yield at date of purchase.
See notes to financial statements.
-33-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE FIXED TOTAL RETURN FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (10.1%):
Federal Home Loan Mortgage Corp.:
$2,000,000 6.50%, 9/15/06................................... $ 1,953,120
2,000,000 6.50%, 3/15/07................................... 1,957,500
-----------
Total Collateral Mortgage Obligations 3,910,620
-----------
CORPORATE BONDS (22.7%):
Banking (8.8%):
500,000 Chase Manhattan Corp., 8.80%, 2/1/00............. 500,900
1,000,000 Citicorp, 6.38%, 1/15/06......................... 928,950
1,000,000 First Union Corp., 7.05%, 8/1/05................. 969,870
1,000,000 Norwest Financial, Inc., 8.38%, 1/15/00.......... 1,025,570
-----------
3,425,290
-----------
Financial Services (10.0%):
1,000,000 Bear Stearns, 6.70%, 8/1/03...................... 963,260
1,000,000 Ford Motor Credit, 6.13%, 1/9/06................. 916,190
1,000,000 Lehman Brothers, Inc., 7.63%, 6/1/06............. 1,011,890
1,000,000 Merrill Lynch & Co., 7.00%, 4/27/08.............. 964,850
-----------
3,856,190
-----------
Railroads (2.6%):
1,000,000 Norfolk Southern Railway Equipment Trust, 7.75%,
8/15/02......................................... 1,022,470
-----------
Retail Stores (1.3%):
500,000 Sears Roebuck & Co., 8.45%, 11/1/98.............. 512,690
-----------
Total Corporate Bonds 8,816,640
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (21.6%):
Federal Home Loan Bank:
$1,000,000 5.51%*, 4/16/97....................................... $ 997,810
Federal Home Loan Mortgage Corp.:
1,579,565 7.00%, 8/1/09......................................... 1,563,801
1,972,481 7.50%*, 9/15/18....................................... 1,981,258
Federal National Mortgage Assoc.:
3,000,000 5.41%*, 4/3/97........................................ 2,999,112
1,000,000 7.91%*, 8/10/04....................................... 835,310
-----------
Total U.S. Government Agencies 8,377,291
-----------
U.S. TREASURY NOTES (37.6%):
3,000,000 6.38%, 7/15/99........................................ 2,992,500
1,000,000 6.38%, 1/15/00........................................ 995,310
2,000,000 6.25%, 2/15/03........................................ 1,945,620
1,000,000 5.75%, 8/15/03........................................ 943,910
1,000,000 6.75%, 6/30/99........................................ 1,005,160
1,000,000 6.88%, 8/31/99........................................ 1,007,340
2,000,000 6.50%, 5/15/05........................................ 1,946,240
3,000,000 5.88%, 11/15/05....................................... 2,794,230
1,000,000 6.50%, 10/15/06....................................... 968,910
-----------
Total U.S. Treasury Notes 14,599,220
-----------
INVESTMENT COMPANIES (3.4%):
1,321,851 AMCORE Vintage U.S. Government Obligation Fund........ 1,321,851
-----------
Total Investment Companies 1,321,851
-----------
Total (Cost--$37,813,479) (a) $37,025,622
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $38,834,809.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$56,094. Cost for federal income tax purposes differs from market value by
net unrealized depreciation of securities as follows:
<TABLE>
<CAPTION>
<S> <C>
Unrealized
appreciation........... $ 14,998
Unrealized
depreciation........... (858,949)
---------
Net unrealized
depreciation........... $(843,951)
=========
</TABLE>
* Effective yield at date of purchase.
See notes to financial statements.
-34-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE AGGRESSIVE GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS (97.0%):
Aerospace/Defense (2.1%):
8,100 Precision Castparts Corp. ............................. $ 413,100
15,000 Sundstrand Corp. ...................................... 650,625
-----------
1,063,725
-----------
Apparel & Shoes (0.7%):
6,000 Nike, Inc. ............................................ 372,000
-----------
Automotive Parts & Equipment (2.9%):
20,000 Lear Corp. (b)......................................... 667,500
18,000 OEA, Inc. ............................................. 751,500
-----------
1,419,000
-----------
Banking (2.6%):
6,000 First Union Corp. ..................................... 486,750
11,000 Mellon Bank Corp. ..................................... 800,250
-----------
1,287,000
-----------
Beverages Soft Drinks (1.8%):
6,000 Coca-Cola Co. ......................................... 335,250
17,000 PepsiCo, Inc. ......................................... 554,625
-----------
889,875
-----------
Business Services (1.7%):
15,000 Cellular Technical Services............................ 135,938
18,500 Olsten Corp. .......................................... 298,313
10,000 Paychex, Inc. ......................................... 411,250
-----------
845,501
-----------
Chemicals (4.6%):
13,000 Air Products & Chemical................................ 882,375
24,500 Monsanto Co. .......................................... 937,125
10,000 W.R. Grace & Co. ...................................... 473,750
-----------
2,293,250
-----------
Computer--Hardware (9.9%):
10,000 3Com Corp. (b)......................................... 327,500
22,500 Cabletron Systems, Inc. (b)............................ 658,125
25,000 Cisco Systems, Inc. (b)................................ 1,203,125
9,000 Compaq Computer Corp. (b).............................. 689,625
9,000 Dell Computer Corp. (b)................................ 608,625
10,000 Hewlett Packard Co. ................................... 532,500
30,000 Sun Microsystems, Inc. (b)............................. 866,250
-----------
4,885,750
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Computer--Software & Peripherals (4.1%):
26,000 Computer Associates International, Inc. ............... $ 1,010,750
15,000 FORE Systems, Inc. (b)................................. 225,000
20,000 Oracle Corp. (b)....................................... 771,250
-----------
2,007,000
-----------
Computer--Services (1.0%):
12,000 Electronic Data Systems Corp. ......................... 484,500
-----------
Consumer Goods & Services (5.0%):
35,000 CUC International, Inc. (b)............................ 787,500
8,500 Gillette Co. .......................................... 617,312
6,000 Kimberly-Clark Corp. .................................. 596,250
4,000 Procter & Gamble Co. .................................. 460,000
-----------
2,461,062
-----------
Containers & Packaging (0.4%):
5,000 Avery Dennison Corp. .................................. 192,500
-----------
Diversified Operations (0.6%):
4,000 AlliedSignal, Inc. .................................... 285,000
-----------
Electrical & Electronic (1.7%):
4,000 General Electric Co. .................................. 397,000
7,000 Rockwell International................................. 454,125
-----------
851,125
-----------
Entertainment (1.0%):
7,000 Walt Disney Co. ....................................... 511,000
-----------
Financial Services (10.7%):
16,000 Fannie Mae............................................. 578,000
16,000 Federal Home Loan Mortgage Corp. ...................... 436,000
20,000 First Data Corp. ...................................... 677,500
18,500 Franklin Resources, Inc. .............................. 943,500
16,000 Green Tree Financial Corp. ............................ 540,000
6,000 Household International................................ 515,250
26,100 MBNA Corp. ............................................ 727,537
15,000 Reuters Holding plc--Sponsored ADR..................... 872,812
-----------
5,290,599
-----------
Food Products & Services (0.2%):
6,000 Whole Foods Market, Inc. (b)........................... 124,500
-----------
Food Wholesaling (0.7%):
10,000 Sysco Corp. ........................................... 341,250
-----------
</TABLE>
Continued
-35-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE AGGRESSIVE GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care (7.2%):
12,000 HealthCare COMPARE Corp. (b)........................... $ 487,500
10,000 Health Care & Retirement Corp. (b)..................... 287,500
18,500 Health Management
Associates, Inc. (b).................................. 439,375
17,000 Lincare Holdings, Inc. (b)............................. 701,250
20,000 MedPartners, Inc. (b).................................. 425,000
8,500 Sofamor Danek Group, Inc. (b).......................... 307,063
12,000 United Healthcare Corp. ............................... 571,500
13,000 Vivra, Inc. (b)........................................ 351,000
-----------
3,570,188
-----------
Health Care Products & Services (1.1%):
12,000 Shared Medical Systems Corp. .......................... 558,000
-----------
Home Furnishing (1.0%):
15,000 Newell Co. ............................................ 502,500
-----------
Insurance (1.1%):
500 American International Group, Inc. .................... 58,688
12,000 Amerin Corp. (b)....................................... 241,500
5,000 Horace Mann Educators Corp. ........................... 220,625
-----------
520,813
-----------
Medical Equipment & Supplies (1.2%):
9,200 Medtronic, Inc. ....................................... 572,700
-----------
Oil & Gas Exploration, Production & Services (3.9%):
5,000 Enron Oil & Gas........................................ 103,750
7,000 Ensco International.................................... 344,750
3,500 Schlumberger Ltd. ..................................... 375,375
10,000 Seitel, Inc. (b)....................................... 353,750
16,000 Tidewater, Inc. ....................................... 736,000
-----------
1,913,625
-----------
Paper Products (1.2%):
23,500 Caraustar Industries, Inc. ............................ 584,562
-----------
Pharmaceuticals (7.5%):
11,000 Agouron Pharmaceuticals, Inc. (b)...................... 776,875
10,000 Alkermes, Inc. (b)..................................... 138,750
14,000 Amgen, Inc. (b)........................................ 782,250
10,000 Elan Corp. plc (b)..................................... 341,250
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals, continued:
22,000 Genzyme Corp. (b)...................................... $ 495,000
3,000 Lilly (Eli) & Co. ..................................... 246,750
8,000 Pfizer, Inc. .......................................... 673,000
3,000 Warner Lambert Co. .................................... 259,500
-----------
3,713,375
-----------
Restaurants (1.2%):
10,000 Landry's Seafood Restaurants (b)....................... 158,750
15,000 Starbucks Corp. (b).................................... 444,375
-----------
603,125
-----------
Retail Stores/Catalog (1.2%):
30,000 Viking Office Products, Inc. (b)....................... 581,250
-----------
Retail--General Merchandise (1.7%):
20,000 Kohl's Corp. (b)....................................... 847,500
-----------
Retail--Specialty Stores (7.4%):
15,000 AutoZone, Inc. (b)..................................... 337,500
26,000 Lowe's Cos., Inc. ..................................... 971,750
25,000 Men's Wearhouse, Inc. (b).............................. 687,500
20,000 Pep Boys-Manny Moe & Jack.............................. 600,000
25,000 Staples, Inc. (b)...................................... 503,125
17,500 West Marine, Inc. (b).................................. 577,500
-----------
3,677,375
-----------
Semiconductors (5.2%):
30,000 Adaptec, Inc. (b)...................................... 1,072,500
15,000 Atmel Corp. (b)........................................ 359,063
8,000 Intel Corp. ........................................... 1,113,000
-----------
2,544,563
-----------
Telecommunications (1.5%):
6,000 GTE Corp. ............................................. 279,750
20,000 WorldCom, Inc. (b)..................................... 440,000
-----------
719,750
-----------
Telecommunications Equipment & Services (2.9%):
10,324 Lucent Technologies.................................... 544,590
17,000 Newbridge Networks Corp. (b)........................... 486,625
7,000 U.S. Robotics.......................................... 387,625
-----------
1,418,840
-----------
Total Common Stocks 47,932,803
-----------
</TABLE>
Continued
-36-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE AGGRESSIVE GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (2.2%):
1,106,192 AMCORE Vintage U.S. Government Obligation Fund......... $ 1,106,192
-----------
Total Investment Companies 1,106,192
-----------
Total (Cost--$46,202,212) (a) $49,038,995
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $49,413,368.
(a) Represents cost for federal tax purposes and differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................. $ 5,635,478
Unrealized deprecia-
tion................. (2,798,695)
-----------
Net unrealized appre-
ciation.............. $ 2,836,783
===========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-37-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
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 ("U.S. Government Obligations Fund"), the AMCORE Vintage
Equity Fund ("Equity Fund"), the AMCORE Vintage Fixed Income Fund ("Fixed
Income Fund"), the AMCORE Vintage Intermediate Tax-Free Fund ("Intermediate
Tax-Free Fund"), the AMCORE Vintage Balanced Fund ("Balanced Fund"), the
AMCORE Vintage Fixed Total Return Fund ("Fixed Total Return Fund"), and the
AMCORE Vintage Aggressive Growth Fund ("Aggressive Growth Fund"),
(individually, a "Fund"; collectively, the "Funds"), 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 and
notes and other short-term obligations issued or guaranteed by the U.S.
Government, 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 equity securities of large
capitalization companies with strong earnings potential. 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 and the Fund expects to maintain a dollar-weighted
average portfolio maturity of 4 to 6 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 tax-exempt obligations that have a stated maturity of
25 years or less and expects to maintain a dollar-weighted average portfolio
maturity of 5 to 9 years. 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 security 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
Fund shares 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
-38-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1997
preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts and disclosures. Actual
amounts 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 when 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 as
determined in good faith by the investment adviser under the supervision
of the Group's Board of Trustees. The difference between the cost and
market values of investments held by the variable net asset value funds
is 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 financial institutions
such as banks, brokers, or dealers that the investment adviser, AMCORE
Capital Management, Inc. ("AMCORE"), deems creditworthy under guidelines
approved by the Group's Board of Trustees, subject to the seller's
agreement to repurchase such securities at a mutually agreed-upon date
and price. The repurchase price generally equals the price paid by a Fund
plus interest negotiated on the basis of current short-term rates,
Continued
-39-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1997
which may be more or less than the rate on the underlying portfolio
securities. The seller, under an agreement to repurchase, is required to
maintain, with the Fund's custodian, another qualified custodian or in
the Federal Reserve/Treasury book-entry system, the value of collateral
held pursuant to the agreement at not less than the repurchase price
(including accrued interest). 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 with delivery to
occur at a later 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. At March 31, 1997 no such
purchase commitments were outstanding.
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.
EXPENSES:
Expenses that are directly related to one of the Funds are charged
directly to that Fund. Expenses relating to the Funds collectively are
prorated to the Funds on the basis of each Fund's relative net assets.
Other expenses for the Group are prorated to the Funds and any other
portfolios of the Group on the basis of relative net assets.
Continued
-40-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1997
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
year ended March 31, 1997 are as follows:
<TABLE>
<CAPTION>
PROCEEDS
PURCHASES FROM SALES
------------ -----------
<S> <C> <C>
Equity Fund.......................................... $133,791,983 $90,367,444
Fixed Income Fund.................................... 53,090,227 49,056,020
Intermediate Tax-Free Fund........................... 12,110,542 8,780,802
Balanced Fund........................................ 21,576,517 6,627,167
Fixed Total Return Fund.............................. 25,854,093 32,746,428
Aggressive Growth Fund............................... 40,202,546 16,330,702
</TABLE>
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, brokers, dealers and other 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 under the terms of this plan during the year ended March
31, 1997.
Continued
-41-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1997
The Group has adopted an Administrative Services Plan (the "Services Plan"),
pursuant to which the 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 a 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.
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, 1997.
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, 1997:
<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% 0.60%
ADMINISTRATION FEES:
Annual fee (percentage of average net
assets).................................. 0.20% 0.20% 0.20%
ADMINISTRATIVE SERVICES FEES:
Annual fee (percentage of average net
assets).................................. N/A 0.25% 0.25%
DISTRIBUTION AND SHAREHOLDER SERVICE
FEES:
Annual fee (percentage of average net
assets).................................. 0.25% 0.25% 0.25%
Voluntary fee reductions................. $376,631 $612,439 $220,064
TRANSFER AGENT & FUND ACCOUNTING FEES:... $134,170 $168,986 $77,718
</TABLE>
Continued
-42-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1997
<TABLE>
<CAPTION>
INTERMEDIATE FIXED AGGRESSIVE
TAX-FREE BALANCED TOTAL RETURN GROWTH
FUND FUND FUND FUND
------------ -------- ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)........................ 0.60% 0.75% 0.75% 0.95%
ADMINISTRATION FEES:
Annual fee (percentage of
average net assets)............ 0.20% 0.20% 0.20% 0.20%
ADMINISTRATIVE SERVICES FEES:
Annual fee (percentage of
average net assets)............ 0.25% 0.25% 0.25% 0.25%
DISTRIBUTION AND SHAREHOLDER
SERVICE FEES:
Annual fee (percentage of
average net assets)............ 0.25% 0.25% 0.25% 0.25%
Voluntary fee reductions....... $108,159 $46,340 $102,229 $93,720
TRANSFER AGENT & FUND
ACCOUNTANT FEES:............... $61,499 $40,596 $41,225 $50,554
</TABLE>
5.FEDERAL INCOME TAXES:
For federal income tax purposes, the following Funds have capital loss
carryforwards as of March 31, 1997, which are available to offset future
capital gains, if any:
<TABLE>
<CAPTION>
AMOUNT EXPIRES
---------- -------
<S> <C> <C>
U.S. Government Obligations Fund........................... $ 11,500 2002
$ 4,867 2003
Fixed Income Fund.......................................... $ 631,115 2003
$1,139,647 2004
$ 733,678 2005
Intermediate Tax-Free Fund................................. $ 91,329 2003
$ 47,384 2004
$ 6,451 2005
Fixed Total Return Fund.................................... $ 398,416 2005
</TABLE>
Continued
-43-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1997
6.FEDERAL INCOME TAX INFORMATION (UNAUDITED):
During the year ended March 31, 1997, the Funds declared long-term capital
distributions in the following amounts:
<TABLE>
<CAPTION>
AMOUNT
----------
<S> <C>
Equity Fund........................................................ $7,567,001
Balanced Fund...................................................... $ 66,017
</TABLE>
Under current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the following fiscal
year. The Fixed Income Fund and Fixed Total Return Fund had deferred losses
of $197,911 and $121,298, respectively, which will be treated as arising on
the first day of the fiscal year ending March 31, 1998.
For the taxable year ended March 31, 1997, the following percentages of
income dividends paid by the Funds qualify for the dividends received
deduction available to corporations:
<TABLE>
<CAPTION>
QUALIFIED
DIVIDEND INCOME
---------------
<S> <C>
Equity Fund................................................... 74.61%
Balanced Fund................................................. 18.12%
Aggressive Growth Fund........................................ 56.51%
</TABLE>
During the year ended March 31, 1997, the Intermediate Tax-Free Fund
declared $1,586,182 of tax-exempt income distributions.
-44-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
----------------------------------------------------
YEAR YEAR YEAR YEAR DECEMBER 21,
ENDED ENDED ENDED ENDED 1992 TO
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1997 1996 1995 1994 1993 (A)
--------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income... 0.045 0.051 0.042 0.027 0.007
------- ------- ------- ------- -------
DIVIDENDS AND
DISTRIBUTIONS:
From net investment
income................. (0.045) (0.051) (0.042) (0.027) (0.007)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total Return............. 4.62% 5.24% 4.32% 2.73% 0.75%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $158,698 $153,836 $137,888 $105,345 $87,928
Ratio of expenses to
average net assets..... 0.76% 0.54% 0.50% 0.56% 0.58%(c)
Ratio of net investment
income to average net
assets................. 4.53% 5.08% 4.26% 2.70% 2.68%(c)
Ratio of expenses to
average net assets*.... 1.01% 0.72% 0.98% 1.02% 1.14%(c)
Ratio of net investment
income to average net
assets*................ 4.28% 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.
-45-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY FUND
--------------------------------------------------------
YEAR YEAR YEAR YEAR DECEMBER 15,
ENDED ENDED ENDED ENDED 1992 TO
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1997 1996 1995 1994 1993 (A)
--------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...... $14.48 $11.44 $10.05 $10.20 $10.00
-------- -------- -------- -------- -------
INVESTMENT ACTIVITIES:
Net investment income... 0.05 0.13 0.15 0.19 0.05
Net realized and
unrealized gains
(losses) from
investments............ 2.60 3.27 1.41 (0.14) 0.19
-------- -------- -------- -------- -------
Total from Investment
Activities............ 2.65 3.40 1.56 0.05 0.24
-------- -------- -------- -------- -------
DIVIDENDS AND
DISTRIBUTIONS:
From net investment
income................. (0.05) (0.13) (0.15) (0.20) (0.04)
From net realized gains
from
investment
transactions........... (0.50) (0.23) (0.02) -- --
-------- -------- -------- -------- -------
Total Dividends and
Distributions......... (0.55) (0.36) (0.17) (0.20) (0.04)
-------- -------- -------- -------- -------
NET ASSET VALUE, END OF
PERIOD.................. $16.58 $14.48 $11.44 $10.05 $10.20
======== ======== ======== ======== =======
Total Return............. 18.35% 29.96% 15.74% 0.45% 2.45%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $309,669 $210,950 $149,233 $125,203 $74,720
Ratio of expenses to
average net assets..... 1.33% 1.09% 1.07% 0.54% 0.23%(c)
Ratio of net investment
income to
average net assets..... 0.32% 0.96% 1.47% 1.97% 2.40%(c)
Ratio of expenses to
average net assets*.... 1.58% 1.09% 1.35% 1.37% 1.43%(c)
Ratio of net investment
income to
average net assets*.... 0.07% 0.96% 1.19% 1.15% 1.20%(c)
Portfolio Turnover...... 37.08% 33.23% 20.54% 3.98% 0.00%
Average Commissions rate
paid (d)............... $0.0677 -- -- -- --
</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.
(d) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged. Disclosure is not required for periods
prior to the year ended March 31, 1997.
See notes to financial statements.
-46-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FIXED INCOME FUND
----------------------------------------------------
YEAR YEAR YEAR YEAR DECEMBER 15,
ENDED ENDED ENDED ENDED 1992 TO
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1997 1996 1995 1994 1993 (A)
--------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...... $ 9.93 $ 9.71 $ 9.92 $10.28 $10.00
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income... 0.54 0.61 0.54 0.59 0.18
Net realized and
unrealized gains
(losses) from
investments............ (0.24) 0.23 (0.22) (0.33) 0.27
------- ------- ------- ------- -------
Total from Investment
Activities............... 0.30 0.84 0.32 0.26 0.45
------- ------- ------- ------- -------
DIVIDENDS AND
DISTRIBUTIONS:
From net investment
income.................. (0.53) (0.62) (0.53) (0.59) (0.17)
From net realized gains
from investment
transactions........... -- -- -- (0.03) --
------- ------- ------- ------- -------
Total Dividends and
Distributions............ (0.53) (0.62) (0.53) (0.62) (0.17)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 9.70 $ 9.93 $ 9.71 $ 9.92 $10.28
======= ======= ======= ======= =======
Total Return............. 3.14% 8.74% 3.46% 2.43% 4.54%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $92,031 $84,752 $81,673 $90,301 $50,127
Ratio of expenses to
average net assets...... 1.20% 0.97% 0.94% 0.51% 0.29%(c)
Ratio of net investment
income to average net
assets................. 5.52% 5.77% 5.53% 5.74% 6.58%(c)
Ratio of expenses to
average net assets*..... 1.45% 0.97% 1.22% 1.24% 1.34%(c)
Ratio of net investment
income to average net
assets*................ 5.27% 5.77% 5.26% 5.01% 5.53%(c)
Portfolio Turnover...... 59.70% 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.
-47-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE FUND
----------------------------------------------------
YEAR YEAR YEAR YEAR FEBRUARY 16,
ENDED ENDED ENDED ENDED 1993 TO
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1997 1996 1995 1994 1993 (A)
--------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................ $10.27 $ 9.97 $ 9.91 $10.05 $10.00
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income.... 0.38 0.43 0.43 0.42 0.05
Net realized and
unrealized gains
(losses) from
investments............. (0.05) 0.30 0.07 (0.13) 0.04
------ ------ ------ ------ ------
Total from Investment
Activities............. 0.33 0.73 0.50 0.29 0.09
------ ------ ------ ------ ------
DIVIDENDS AND
DISTRIBUTIONS:
From net investment
income.................. (0.38) (0.43) (0.43) (0.42) (0.04)
From net realized gains
from investment
transactions............ -- -- (0.01) (0.01) --
------ ------ ------ ------ ------
Total Dividends and
Distributions.......... (0.38) (0.43) (0.44) (0.43) (0.04)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD................... $10.22 $10.27 $ 9.97 $ 9.91 $10.05
====== ====== ====== ====== ======
Total Return............ 3.22% 7.43% 5.29% 2.79% 0.90%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)............ $45,164 $42,436 $30,717 $32,983 $13,043
Ratio of expenses to
average net assets...... 1.28% 0.75% 0.73% 0.57% 0.42%(c)
Ratio of net investment
income to
average net assets...... 3.68% 4.21% 4.42% 4.19% 4.31%(c)
Ratio of expenses to
average net assets*..... 1.53% 1.02% 1.30% 1.38% 1.47%(c)
Ratio of net investment
income to
average net assets*..... 3.43% 3.94% 3.84% 3.37% 3.26%(c)
Portfolio Turnover....... 21.00% 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.
-48-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BALANCED FUND
--------------------------
YEAR ENDED JUNE 1, 1995 TO
MARCH 31, MARCH 31,
1997 1996 (A)
---------- ---------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................ $ 11.08 $ 10.00
------- -------
INVESTMENT ACTIVITIES:
Net investment income ............................. 0.18 0.24
Net realized and unrealized gains from investments. 1.05 1.08
------- -------
Total from Investment Activities.................. 1.23 1.32
------- -------
DIVIDENDS AND DISTRIBUTIONS:
From net investment income......................... (0.18) (0.24)
From net realized gains from investment
transactions...................................... (0.41) --
------- -------
Total Dividends and Distributions................. (0.59) (0.24)
------- -------
NET ASSET VALUE, END OF PERIOD...................... $ 11.72 $ 11.08
======= =======
Total Return...................................... 11.05% 13.29%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).................. $32,012 $13,516
Ratio of expenses to average net assets............ 1.55% 1.32%(c)
Ratio of net investment income to average net
assets............................................ 1.58% 2.66%(c)
Ratio of expenses to average net assets*........... 1.80% 1.32%(c)
Ratio of net investment income to average net
assets*........................................... 1.33% 2.66%(c)
Portfolio Turnover................................. 38.35% 61.72%
Average Commissions rate paid (d).................. $0.1039 --
</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.
(d) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged. Disclosure is not required for periods
prior to the year ended March 31, 1997.
See notes to financial statements.
-49-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FIXED TOTAL RETURN FUND
------------------------
YEAR ENDED JUNE 15, 1995
MARCH 31, TO MARCH 31,
1997 1996 (A)
---------- -------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................. $ 9.89 $ 10.00
------- -------
INVESTMENT ACTIVITIES:
Net investment income .............................. 0.50 0.44
Net realized and unrealized (losses) from
investments........................................ (0.20) (0.11)
------- -------
Total from Investment Activities................... 0.30 0.33
------- -------
DIVIDENDS AND DISTRIBUTIONS:
From net investment income.......................... (0.50) (0.43)
From net realized gains from investment
transactions....................................... -- (0.01)
------- -------
Total Dividends and Distributions.................. (0.50) (0.44)
------- -------
NET ASSET VALUE, END OF PERIOD....................... $ 9.69 $ 9.89
======= =======
Total Return....................................... 3.13% 3.40%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................... $38,835 $41,178
Ratio of expenses to average net assets............. 1.40% 1.18%(c)
Ratio of net investment income to average net
assets............................................. 5.18% 5.53%(c)
Ratio of expenses to average net assets*............ 1.65% 1.18%(c)
Ratio of net investment income to average net
assets*............................................ 4.93% 5.53%(c)
Portfolio Turnover.................................. 70.63% 69.30%
</TABLE>
- ------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-50-
<PAGE>
THE COVENTRY GROUP
AMCORE VINTAGE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND
------------------------------
YEAR ENDED SEPTEMBER 29, 1995
MARCH 31, TO MARCH 31,
1997 1996 (A)
---------- ------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............. $ 10.88 $ 10.00
------- -------
INVESTMENT ACTIVITIES:
Net investment income (loss).................... (0.06) --
Net realized and unrealized gains from
investments.................................... 1.08 0.90
------- -------
Total from Investment Activities............... 1.02 0.90
------- -------
DIVIDENDS AND DISTRIBUTIONS:
From net realized gains from investment
transactions................................... -- (0.02)
------- -------
Total Dividends and Distributions.............. -- (0.02)
------- -------
NET ASSET VALUE, END OF PERIOD................... $ 11.90 $ 10.88
======= =======
Total Return................................... 9.39% 9.10%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............... $49,413 $23,319
Ratio of expenses to average net assets......... 1.63% 1.57%(c)
Ratio of net investment income (loss) to average
net assets..................................... (0.64%) 0.08%(c)
Ratio of expenses to average net assets*........ 1.88% 1.57%(c)
Ratio of net investment income (loss) to average
net assets*.................................... (0.89%) 0.08%(c)
Portfolio Turnover.............................. 45.14% 4.31%
Average Commissions rate paid (d)............... $0.0941 --
</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.
(d) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged. Disclosure is not required for periods
prior to the year ended March 31, 1997.
See notes to financial statements.
-51-
<PAGE>
LOGO
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
5/97
[LOGO]
[LOGO of AMCORE]
Capital Management, Inc.
INVESTMENT ADVISER
ANNUAL REPORT TO SHAREHOLDERS MARCH 31, 1997
BISYS Fund Services
3435 STELZER ROAD
COLUMBUS, OH 43219
