<PAGE>
Message From The Investment Adviser Brenton Mutual Funds
- --------------------------------------------------------------------------------
Dear Shareholders:
The past six months have been turbulent for financial markets, with interest
rates declining and common stocks falling. The markets appear to have reached a
double bottom in August and early October and have now begun to recover.
Economic growth continues to be solid with few signs of inflation. Liquidity
problems in capital markets (i.e. Long Term Capital) has been partially to
blame for instability in domestic markets, and it is unclear what effect the
problems abroad will have upon the U.S. economy. Thus far, GDP has outpaced
analyst expectations and consumer spending continues to be strong and well
ahead of 1997. Declining interest rates should continue to support strong
consumer spending, especially in the housing market and auto industry.
Industrial production and capital spending were softer than expected in the
third quarter with their weakest quarterly performance since the last
recession. Looking forward we expect moderate economic growth and continued low
inflation combined with stable to moderately lower short-term interest rates.
We believe this environment should continue to be constructive for financial
assets.
U.S. GOVERNMENT MONEY MARKET FUND/1/
Declining interest rates are the focus here, with the most significant change
coming in the short end of the yield curve. The Fed has eased twice and we
believe, is likely to act again in either late 1998 or early 1999 putting
further downward pressure on short-term interest rates. That being said,
performance of the fund has continued to be strong as measured by the trailing
one year return of 4.98%, as of September 30, 1998 focusing on high credit
quality and maintaining the current average maturity. The seven day yield as of
September 30, 1998 is 4.69% with a since inception (August 9, 1994) return of
4.85%. The yield quotation more closely reflects the current earnings of the
Fund than the total return quotation.
INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
Interest rates declined substantially in the last six months with the yield
curve regaining some slope. The spread between the two-year treasury and the
thirty-year treasury on March 31st was 34 basis points compared with 68 basis
points on September 30th and 78 basis points at the time of this writing.
Despite continued domestic economic growth, the Federal Open Market committee
has lowered the target Fed Funds rate to 5.0%. These Fed easings have been the
primary influence upon the yield curve and we feel it is very likely that there
could be further easings causing an even steeper yield curve. The Fed cited the
beginning of a perceived credit crunch coupled with continued woes in Russia
and Asia as the reason for the rate cuts.
The Brenton Intermediate U.S. Government Securities Fund returned 6.75%
(without load) and loaded of 3.05% for the last six months ending September 30,
1998. We are generally pleased with this return since the average Intermediate
U.S. Government bond fund as measured by the Lipper U.S. Government Bond
Index/2/ was up just 6.35%. The duration of the fund continues to resemble the
Merrill Lunch 3-7/3/ year government index. Credit quality remains strong by
investing in U.S. Government or government agency securities only. Looking
forward we plan to continue along this same strategy. The one year loaded
return is 7.03% and 10.90% (without load) with a since inception return of
7.58% (without load) and 6.66% loaded. Our outlook is for continued low
inflation as well as an increasingly upward sloping yield curve. Under this
scenario, we believe prospects are good for achieving solid real (inflation
adjusted) returns for shareholders.
VALUE EQUITY FUND
The last six months have been a difficult period for the U.S. stock market and
the Value Equity Fund suffered declines. The return for the Brenton Value
Equity Fund (without load) was a -11.35% and -15.32% loaded compared to a
- -6.99% for the Standard and Poors 500 Index/4/ and a -11.84% as measured by the
Lipper Growth Fund Index/5/. The one year and since inception (August 9, 1994)
- --------------------------------------------------------------------------------
-1-
<PAGE>
Message From The Investment Adviser Brenton Mutual Funds
- --------------------------------------------------------------------------------
returns are .72% (without load) and -3.80% loaded as well as 17.84% (without
load) and 16.55% loaded, respectively. Although our long-range goal is to
perform well compared to the Standard and Poors 500 Index, a goal we have not
met, we remain pleased that we are performing well compared to the Lipper
Growth Fund Index. For the most recent three years, the fund is up an average
of 16.44% compared to the Lipper Growth Fund Index average of 15.12%.
Looking forward, we see a generally positive environment for financial assets
with low inflation and interest rates and slower but moderate economic growth.
However, after seven and a half years of economic expansion, we believe profit
growth will become more difficult and current valuation levels leave little
room for expansion in price to earnings ratios. Therefore, we expect to see
more restrained returns over the next few years. We will continue to
concentrate new purchases in firms positioned for consistent growth and we are
limiting our exposure to cyclical stocks.
Longer term, we will continue to stress themes related to demographic trends,
in particular, the aging of the baby boom generation. We are confident that
these trends will continue and be particularly positive for financial stocks as
well as health care related firms.
We appreciate the opportunity to serve your investment needs and will work hard
to continue to earn and retain your confidence and support. If you have
questions, would like a prospectus or require any assistance, please contact
your investment representative or call 1-800-706-FUND.
Sincerely,
/s/ Douglas L. Brown
Douglas L. Brown
Vice President/Senior Portfolio Manager
Brenton Bank
- --------------------------------------------------------------------------------
2
<PAGE>
Message From The Investment Adviser Brenton Mutual Funds
- -------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
NET ASSET VALUE (NAV) WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. THE COMPOSITION OF
THE FUNDS' HOLDINGS IS SUBJECT TO CHANGE.
FOR MORE COMPLETE INFORMATION ON ANY OF THE BRENTON MUTUAL FUNDS, INCLUDING
FEES, EXPENSES AND SALES CHARGES, PLEASE CALL 1-800-706-FUND FOR A FREE
PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING OR SENDING
MONEY.
/1/An investment in the Fund is not insured nor guaranteed by the FDIC or any
other government agency. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.
/2/THE LIPPER U.S. GOVERNMENT BOND INDEX REPRESENTS THE AVERAGE PERFORMANCE OF
A UNIVERSE OF 30 ACTIVELY-MANAGED BOND FUNDS. LIPPER IS AN INDEPENDENT MUTUAL
FUND PERFORMANCE MONITOR WHOSE RESULTS ARE BASED ON TOTAL RETURN AND DO NOT
REFLECT A SALES CHARGE.
/3/THE MERRILL LYNCH 3-7 YEAR GOVERNMENT INDEX IS A REPRESENTATIVE OF THE
PERFORMANCE OF THE INTERMEDIATE U.S. GOVERNMENT SECURITIES. THE INDEX DOES NOT
REFLECT THE REDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND, SUCH AS
INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES.
/4/THE PERFORMANCE OF THE BRENTON VALUE EQUITY FUND IS MEASURED AGAINST THE
STANDARD & POOR'S 500 INDEX, WHICH IS GENERALLY REPRESENTATIVE OF THE
PERFORMANCE OF THE STOCK MARKET AS A WHOLE. THE INDEX DOES NOT REFLECT THE
DEDUCTION OF FEES ASSOCIATED WITH A MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT
AND FUND ACCOUNTING FEES.
/5/THE LIPPER GROWTH FUND INDEX REPRESENTS PERFORMANCE OF A UNIVERSE OF 30
ACTIVELY-MANAGED GROWTH FUNDS. LIPPER IS AN INDEPENDENT MUTUAL FUND
PERFORMANCE MONITOR WHOSE RESULTS ARE BASED ON TOTAL RETURN AND DO NOT REFLECT
A SALES CHARGE.
SHARES OF THE FUNDS ARE NOT FDIC INSURED, NOR ARE THEY INSURED BY ANY
GOVERNMENT AGENCY. FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, BRENTON BANK OR ITS AFFILIATES. AN INVESTMENT IN
THE FUNDS INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED.
THE BRENTON MUTUAL FUNDS ARE A FAMILY OF MUTUAL FUNDS DISTRIBUTED BY BISYS
FUND SERVICES WHICH IS INDEPENDENT OF BRENTON BANK AND ITS AFFILIATES. BRENTON
BROKERAGE IS A REGISTERED BROKER-DEALER FROM WHOM SHARES OF THE BRENTON MUTUAL
FUNDS MAY BE PURCHASED.
- -------------------------------------------------------------------------------
3
<PAGE>
TABLE OF CONTENTS
Statements of Assets and Liabilities
Page 5
Statements of Operations
Page 6
Statements of Changes in Net Assets
Page 7
Schedules of Portfolio Investments
Page 9
Notes to Financial Statements
Page 14
Financial Highlights
Page 19
4
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE
U.S. GOVERNMENT U.S. GOVERNMENT
MONEY MARKET SECURITIES VALUE EQUITY
FUND FUND FUND
--------------- --------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost
$34,993,811; $26,931,128;
$39,711,317, respectively)........ $34,993,811 $28,415,976 $51,939,296
Interest and dividends receivable.. 121,873 450,054 61,246
Prepaid expenses and other assets.. 21,346 3,956 11,340
Receivable from administrator...... 17,882 -- --
----------- ----------- -----------
Total Assets................... 35,154,912 28,869,986 52,011,882
----------- ----------- -----------
LIABILITIES:
Dividends payable.................. 139,306 120,124 49,089
Payable for securities purchased... -- -- 333,300
Accrued expenses and other
payables:
Investment advisory fees......... 8,775 11,118 28,074
Administration fees.............. 425 235 870
Distribution and shareholder
service fees.................... 585 467 2,100
Other fees....................... -- 15,820 18,383
----------- ----------- -----------
Total Liabilities.............. 149,091 147,764 431,816
----------- ----------- -----------
NET ASSETS:
Capital............................ 35,006,179 27,005,544 33,621,550
Undistributed (distribution in
excess of) net investment
income/(loss)..................... -- 23,889 10,183
Accumulated undistributed net
realized gains/(losses) from
investment transactions........... (358) 207,941 5,720,354
Net unrealized
appreciation/(depreciation) from
investments........................ -- 1,484,848 12,227,979
----------- ----------- -----------
Net Assets..................... $35,005,821 $28,722,222 $51,580,066
=========== =========== ===========
Outstanding units of beneficial
interest (shares).................. 35,006,219 2,681,692 2,943,036
=========== =========== ===========
Net asset value--redemption price
per share.......................... $ 1.00 $ 10.71 $ 17.53
=========== =========== ===========
Maximum Sales Charge............... -- 3.50% 4.50%
----------- ----------- -----------
Maximum Offering Price per share
(NAV/(100%--Maximum Sales Charge)
of net asset value adjusted to
nearest cent)..................... $1.00(a) $ 11.10 $ 18.36
=========== =========== ===========
</TABLE>
- --------
(a) Offering price and redemption price are the same for the Money Market Fund.
See notes to financial statements.
5
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE
U.S. GOVERNMENT U.S. GOVERNMENT
MONEY MARKET SECURITIES VALUE EQUITY
FUND FUND FUND
--------------- --------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................... $1,053,105 $ 853,046 $ --
Dividend income..................... 271 22,630 453,897
---------- ---------- -----------
Total income...................... 1,053,376 875,676 453,897
---------- ---------- -----------
EXPENSES:
Investment advisory fees............ 75,952 67,543 186,911
Administration fees................. 37,976 28,329 56,455
Distribution and shareholder service
fees................................ 94,939 70,789 141,135
Custodian fees...................... 7,123 3,129 6,733
Fund accounting fees................ 16,095 16,612 16,661
Legal fees.......................... 3,511 2,807 4,734
Audit fees.......................... 3,973 3,477 7,716
Trustees' fees...................... 3,594 3,846 6,832
Transfer agent fees................. 28,037 13,537 28,676
Registration and filing fees........ 1,158 1,086 1,656
Printing fees....................... 2,875 1,800 4,343
Insurance........................... 2,152 2,004 2,900
Other............................... 510 404 694
---------- ---------- -----------
Total Expenses.................... 277,895 215,363 465,446
Less: Fee waivers and expense
reimbursements...................... (137,506) (82,129) (127,022)
---------- ---------- -----------
Net expenses...................... 140,389 133,234 338,424
---------- ---------- -----------
Net investment income............... 912,987 742,442 115,473
---------- ---------- -----------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains/(losses) from
investment transactions............. -- 14,822 2,782,619
Net change in unrealized
appreciation/(depreciation) from
investments........................ -- 1,091,073 (9,545,078)
---------- ---------- -----------
Net realized gains/(losses) from
investments......................... 0 1,105,895 (6,762,459)
---------- ---------- -----------
Change in net assets resulting from
operations.......................... $ 912,987 $1,848,337 $(6,646,986)
========== ========== ===========
</TABLE>
See notes to financial statements.
6
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY INTERMEDIATE U.S. GOVERNMENT
MARKET FUND SECURITIES FUND
--------------------------- -------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
1998 1998 1998 1998
------------- ------------ --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 912,987 $ 1,747,740 $ 742,442 $ 1,944,467
Net realized
gains/(losses) from
investment
transactions.......... -- 8 14,822 295,619
Net change in
unrealized
appreciation/
(depreciation) from
investments........... -- -- 1,091,073 1,228,528
------------ ------------ -------------- --------------
Change in net assets
resulting from
operations.............. 912,987 1,747,748 1,848,337 3,468,614
------------ ------------ -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................. (913,613) (1,747,740) (739,655) (1,961,357)
In excess of net
investment income...... -- -- -- (19,724)
Dividends to
shareholders from net
realized gains from
investment
transactions.......... -- -- -- (54,748)
------------ ------------ -------------- --------------
Change in net assets
from shareholder
distributions.......... (913,613) (1,747,740) (739,655) (2,035,829)
------------ ------------ -------------- --------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 38,346,115 105,475,648 6,014,702 7,155,148
Dividends reinvested... 190,699 280,061 348,179 550,903
Cost of shares
redeemed............... (45,590,965) (98,490,752) (5,081,773) (16,964,161)
------------ ------------ -------------- --------------
Change in net assets
from capital
share transactions..... (7,054,151) 7,264,957 1,281,108 (9,258,110)
------------ ------------ -------------- --------------
Change in net assets.... (7,054,777) 7,264,965 2,389,790 (7,825,325)
NET ASSETS:
Beginning of period.... 42,060,598 34,795,633 26,332,432 34,157,757
------------ ------------ -------------- --------------
End of period.......... $ 35,005,821 $ 42,060,598 $ 28,722,222 $ 26,332,432
============ ============ ============== ==============
Accumulated
undistributed net
investment income
included in net assets,
end of period.......... $ -- $ 626 $ 23,889 $ 21,102
------------ ------------ -------------- --------------
SHARE TRANSACTIONS:
Issued................. 38,346,158 105,475,630 582,513 700,180
Reinvested............. 190,699 280,061 33,716 54,220
Redeemed............... (45,590,965) (98,491,075) (490,183) (1,643,959)
============ ============ ============== ==============
Change in shares........ (7,054,108) 7,264,616 126,046 (889,559)
============ ============ ============== ==============
</TABLE>
See notes to financial statements.
7
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VALUE EQUITY FUND
--------------------------
SIX MONTHS
ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31,
1998 1998
------------- ------------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................. $ 115,473 $ 297,779
Net realized gains/(losses) from investment
transactions...................................... 2,782,619 4,467,710
Net change in unrealized
appreciation/(depreciation) from investments...... (9,545,078) 11,585,146
----------- ------------
Change in net assets resulting from operations..... (6,646,986) 16,350,635
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income........................ (101,911) (291,610)
In excess of net investment income................ -- (3,379)
Dividends to shareholders from net realized gains
from investment transactions..................... -- (1,209,608)
----------- ------------
Change in net assets from shareholder
distributions...................................... (101,911) (1,504,597)
----------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....................... 6,213,847 12,077,719
Dividends reinvested.............................. 94,240 1,079,209
Cost of shares redeemed........................... (4,926,907) (12,781,841)
----------- ------------
Change in net assets from capital share
transactions....................................... 1,381,180 375,087
----------- ------------
Change in net assets............................... (5,367,717) 15,221,125
NET ASSETS:
Beginning of period............................... 56,947,783 41,726,658
----------- ------------
End of period..................................... $51,580,066 $ 56,947,783
=========== ============
Accumulated undistributed (distribution in excess
of) net investment income included in net assets,
end of period..................................... $ 10,183 $ (3,379)
----------- ------------
SHARE TRANSACTIONS:
Issued............................................ 320,175 692,334
Reinvested........................................ 4,798 60,284
Redeemed.......................................... (257,247) (697,579)
----------- ------------
Change in shares................................... 67,726 55,039
=========== ============
</TABLE>
See notes to financial statements.
8
<PAGE>
THE COVENTRY GROUP
BRENTON U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
----------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (100.0%):
Federal Farm Credit Bank (1.2%):
$ 410,000 5.70%, 12/1/98....................................... $ 409,938
Federal Home Loan Bank: (93.1%):
17,071,000 5.40%*, 10/1/98...................................... 17,070,999
350,000 5.71%, 10/1/98....................................... 350,000
650,000 5.70%, 10/23/98...................................... 649,976
700,000 5.78%, 10/30/98...................................... 699,994
5,000,000 5.47%*, 11/18/98..................................... 4,964,000
6,177,000 5.39%*, 11/25/98..................................... 6,126,559
500,000 5.50%, 3/19/99....................................... 499,777
450,000 5.50%, 3/26/99....................................... 449,792
400,000 5.63%, 4/9/99........................................ 399,843
1,370,000 5.53%, 6/10/99....................................... 1,368,504
-----------
32,579,444
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
----------- ----------------------------------------------------- -----------
<C> <S> <C>
Sallie Mae (5.7%):
$ 250,000 5.72%, 11/20/98...................................... $ 249,977
250,000 5.72%, 11/20/98...................................... 249,986
1,500,000 5.74%, 12/17/98...................................... 1,499,683
-----------
1,999,646
-----------
Total U.S. Government Agencies 34,989,028
-----------
INVESTMENT COMPANIES (0.0%):
4,783 Dreyfus Treasury Prime Money Market Portfolio........ 4,783
-----------
Total Investment Companies 4,783
-----------
Total (Amortized Cost--$34,993,811)(a) $34,993,811
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $35,005,821.
*Effective yield at date of purchase.
(a)Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
9
<PAGE>
THE COVENTRY GROUP
BRENTON INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (87.5%):
Federal Home Loan Bank (44.9%):
$2,000,000 6.50%, 6/5/02......................................... $ 2,120,298
3,000,000 5.69%, 4/15/03........................................ 3,115,482
1,000,000 6.89%, 4/6/04......................................... 1,100,815
1,000,000 7.36% 7/1/04.......................................... 1,127,162
1,000,000 7.32%, 4/21/05........................................ 1,137,165
3,000,000 6.32%, 6/28/05........................................ 3,241,872
1,000,000 6.15%, 11/28/05....................................... 1,072,656
-----------
12,915,450
-----------
Freddie Mac (12.7%):
1,500,000 6.55%, 10/2/02........................................ 1,600,150
1,000,000 6.75%, 8/1/05......................................... 1,108,426
907,409 6.50%, 7/1/08......................................... 930,657
-----------
3,639,233
-----------
Fannie Mae (28.3%):
2,500,000 5.75%, 6/15/05........................................ 2,635,547
1,500,000 6.74%, 7/9/07......................................... 1,684,707
566,304 6.50%, 3/1/09......................................... 580,637
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Fannie Mae, continued
$1,803,128 7.50%, 11/1/17........................................ $ 1,872,422
1,308,267 7.50%, 12/1/25........................................ 1,353,638
-----------
8,126,951
-----------
Ginnie Mae (1.6%):
442,439 7.00%, 5/1/10......................................... 455,296
-----------
Total U.S. Government Agencies (Cost $23,764,177) 25,136,930
-----------
U.S. TREASURY NOTES (10.9%):
1,000,000 6.38%, 1/15/00........................................ 1,022,656
2,000,000 5.88%, 9/30/02........................................ 2,109,688
-----------
Total U.S. Treasury Notes (Cost $3,020,250) 3,132,344
-----------
INVESTMENT COMPANIES (0.5%):
146,702 Goldman Federal Portfolio Money Market................ 146,702
-----------
Total Investment Companies 146,702
-----------
Total (Cost--$26,931,128)(a) $28,415,976
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $28,722,222.
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $1,484,848
Unrealized depreciation... 0
----------
Net unrealized
appreciation.............. $1,484,848
==========
</TABLE>
See notes to financial statements.
10
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS (99.3%):
Aerospace/Defense (0.8%):
11,000 General Motors Corp.--Class H.......................... $ 404,938
-----------
Auto Parts (0.4%):
5,000 TRW, Inc............................................... 221,875
-----------
Banks (7.7%):
14,850 Banc One Corp (b)...................................... 632,981
13,500 BankAmerica Corp....................................... 811,688
20,000 Chase Manhattan Corp................................... 865,000
4,000 Citicorp............................................... 371,750
3,500 Wells Fargo & Co....................................... 1,242,499
-----------
3,923,918
-----------
Beverages--Non-alcoholic (2.0%):
9,200 Coca-Cola Co........................................... 530,150
16,700 PepsiCo, Inc........................................... 491,606
-----------
1,021,756
-----------
Beverages--Wines & Spirits (1.8%):
17,400 Anheuser-Busch Cos., Inc............................... 939,600
-----------
Capital Equipment (1.7%):
16,000 Illinois Tool Works, Inc............................... 872,000
-----------
Chemicals--Diversified (0.9%):
8,600 Du Pont (E.I.) de Nemours & Co......................... 482,675
-----------
Chemicals--Specialty (1.2%):
21,000 Sigma-Aldrich Corp..................................... 606,375
-----------
Computer Software (3.4%):
10,050 Cisco Systems, Inc. (b)................................ 621,216
14,000 Electronic Data Systems Corp........................... 464,625
6,000 Microsoft Corp......................................... 660,375
-----------
1,746,216
-----------
Computer (3.2%):
20,000 EMC Corporation (b).................................... 1,143,750
4,000 International Business Machines Corp................... 512,000
-----------
1,655,750
-----------
Computers--Peripheral Equipment (0.6%):
10,000 Compaq Computer Corp................................... 316,250
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Cosmetics/Personal Care (0.6%):
8,000 Gillette Co............................................ $ 306,000
-----------
Defense (1.8%):
18,186 Raytheon Co.--Class A.................................. 942,262
-----------
Diversified Operations (3.2%):
13,000 General Electric Co.................................... 1,034,312
8,100 Minnesota Mining & Manufacturing Co.................... 596,869
-----------
1,631,181
-----------
Electric Utility (1.2%):
14,000 BEC Energy............................................. 609,875
-----------
Electrical Equipment (3.0%):
18,000 AMP, Inc............................................... 643,500
14,000 Emerson Electric Co.................................... 871,500
-----------
1,515,000
-----------
Electronic Components (1.4%):
5,000 Intel Corp............................................. 428,750
7,000 Motorola, Inc.......................................... 298,813
-----------
727,563
-----------
Energy (1.5%):
22,500 Xilinx, Inc. (b)....................................... 787,500
-----------
Financial Services (3.4%):
15,000 Federal Home Loan Mortgage Corp........................ 741,563
17,800 MGIC Investment Corp................................... 656,375
10,000 Washington Mutual Inc.................................. 337,500
-----------
1,735,438
-----------
Food Products & Services (3.6%):
31,200 ConAgra, Inc........................................... 840,450
19,300 Sara Lee Corp.......................................... 1,042,199
-----------
1,882,649
-----------
Health Care--Drugs (5.6%):
18,000 American Home Products Corp............................ 942,750
12,000 Bristol Myers Squibb Co................................ 1,246,499
5,000 Merck & Co., Inc....................................... 647,813
-----------
2,837,062
-----------
</TABLE>
Continued
11
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care--General Products (2.3%):
15,100 Johnson & Johnson...................................... $ 1,181,575
-----------
Household--General Products (2.5%):
10,000 Newell Co.............................................. 460,625
12,000 Procter & Gamble Co.................................... 851,250
-----------
1,311,875
-----------
Insurance (5.6%):
6,000 American International Group, Inc...................... 462,000
16,000 Reliastar Financial Corp............................... 624,000
19,300 Safeco Corp............................................ 804,569
19,200 UNUM Corp.............................................. 953,999
-----------
2,844,568
-----------
Leisure & Recreation (0.6%):
25,000 Brunswick Corp......................................... 323,438
-----------
Medical-Wholesale Drug Distribution (2.1%):
7,000 Lilly (Eli) & Co....................................... 548,187
5,000 Pfizer, Inc............................................ 529,688
-----------
1,077,875
-----------
Medical-Hospital Management & Services (1.1%):
20,000 Tenet Healthcare Corp. (b)............................. 575,000
-----------
Motor Vehicles (0.7%):
7,000 General Motors Corp.................................... 382,813
-----------
Multimedia (0.6%):
12,000 The Walt Disney Co..................................... 303,750
-----------
Natural Gas Utility (0.6%):
15,000 Baker Hughes, Inc...................................... 314,063
-----------
Office Supplies, Automation & Equipment (2.5%):
8,000 Avery Dennison......................................... 349,500
18,000 Pitney Bowes, Inc...................................... 946,125
-----------
1,295,625
-----------
Oil & Gas (1.4%):
20,000 Burlington Resources, Inc.............................. 747,500
-----------
Oil Companies--Integrated (4.6%):
11,600 Amoco Corp............................................. 624,950
12,800 Exxon Corp............................................. 898,399
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oil Companies--Integrated, continued:
11,000 Mobil Corp............................................. $ 835,313
-----------
2,358,662
-----------
Oil Field Services (1.6%):
16,000 Schlumberger Ltd....................................... 805,000
-----------
Paint & Related Products (1.9%):
29,800 Sherwin-Williams Co.................................... 644,425
-----------
Paper & Related Products (2.1%):
18,800 Kimberly-Clark Corp.................................... 761,400
10,000 Lowe's Cos., Inc....................................... 318,125
-----------
1,079,525
-----------
Restaurants (1.7%):
15,000 McDonald's Corp........................................ 895,313
-----------
Retail--Convenience Stores (1.3%):
45,000 Casey's General Stores, Inc............................ 675,000
-----------
Retail--General Merchandise (2.1%):
11,000 Costco Cos., Inc. (b).................................. 521,125
10,000 Wal Mart Stores, Inc................................... 546,250
-----------
1,067,375
-----------
Retail--Specialty Stores (1.1%):
14,000 Home Depot, Inc........................................ 553,000
-----------
Steel (0.5%):
6,000 Nucor Corp............................................. 243,750
-----------
Telecommunications (1.7%):
18,000 MCI Worldcom, Inc. (b)................................. 879,750
-----------
Telecommunications Equipment (0.9%):
6,500 Lucent Technologies, Inc............................... 448,906
-----------
Tobacco (1.8%):
20,300 Philip Morris Cos., Inc................................ 935,069
-----------
Utilities--Electric (2.3%):
15,000 AES Corp............................................... 555,938
21,000 Houston Industries, Inc................................ 653,625
-----------
1,209,563
-----------
Utilities--Gas & Pipeline (0.9%):
15,300 Sonat, Inc............................................. 457,088
-----------
</TABLE>
Continued
12
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Telephone (4.4%):
10,000 AT&T Corp.............................................. $ 584,375
14,800 GTE Corp............................................... 814,000
19,800 SBC Communications, Inc................................ 879,862
-----------
2,278,237
-----------
Wholesale (2.2%):
26,000 Arrow Electronics, Inc. (b)............................ 341,250
34,000 Sysco Corp............................................. 801,125
-----------
1,142,375
-----------
Total Common Stocks (Cost--$38,969,024) 51,197,003
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (1.4%):
742,293 Goldman Federal Money Market Portfolio................. $ 742,293
-----------
Total Investment Companies 742,293
-----------
Total (Cost--$39,711,317)(a) $51,939,296
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $51,580,066.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $14,804,516
Unrealized depreciation... (2,576,537)
-----------
Net unrealized apprecia-
tion..................... $12,227,979
===========
</TABLE>
See notes to financial statements.
13
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
(UNAUDITED)
1. ORGANIZATION:
The Coventry Group (the "Group") was organized on January 8, 1992 as a
Massachusetts business trust, and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. Between the date of organization and the date
of commencement of operations of the Brenton U.S. Government Money Market
Fund, the Brenton Intermediate U.S. Government Securities Fund, and the
Brenton Value Equity 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 Brenton U.S. Government Money Market Fund's investment objective is to
seek current income consistent with maintaining liquidity and stability of
principal. The Fund invests 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 ("U.S. Government
Obligations"). The investment objective of the Brenton Intermediate U.S.
Government Securities Fund is to seek total return consistent with the
production of current income and the preservation of capital. The Fund
invests primarily in U.S. Government Obligations and intends to maintain a
dollar-weighted average portfolio maturity of 3 to 10 years. The investment
objective of the Brenton Value Equity Fund is long-term capital
appreciation. The Fund invests primarily in a diversified portfolio of
equity securities.
The Group is authorized to issue an unlimited number of shares, which are
equal 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 preparation
of financial statements requires management to make estimates and
assumptions that effect the reported amounts and disclosures. Actual amounts
could differ from those estimates.
SECURITIES VALUATION:
Investments of the Brenton U.S. Government Money Market Fund are valued
at amortized cost, which approximates market value. Under the amortized
cost valuation method, discount or premium is amortized on a constant
basis to the maturity of the security.
Investments, excluding registered investment companies, of the Brenton
Intermediate U.S. Government Securities Fund and the Brenton Value Equity
Fund (collectively "the variable net asset value funds") are valued at
their market values determined on the basis of the latest available bid
quotation in the principal market (closing sales prices if the principal
market is an exchange) in which such securities are normally traded.
Investments in investment companies are valued at their respective net
asset values as
Continued
14
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 1998
(UNAUDITED)
reported by such companies. Securities, including restricted securities,
for which market quotations are not readily available, are valued at fair
market value or 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 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 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, which may be more or less than the rate on the
underlying portfolio securities. The seller, under a repurchase
agreement, is required to maintain with the Fund's custodian 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.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the U.S. Government Money Market Fund. Dividends from net investment
income are declared and paid monthly for the Intermediate U.S. Government
Securities Fund. Dividends from net investment income are declared and
paid quarterly for the Value Equity Fund. Distributable net realized
capital gains, if any, are declared and distributed at least annually for
each Fund.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations, which may
differ from generally accepted accounting principles. These differences
are primarily due to differing treatments for organization costs,
expiring capital loss carry forwards and deferrals of certain losses.
FEDERAL INCOME TAXES:
It is the policy of each of the Funds to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Continued
15
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 1998
(UNAUDITED)
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve each of the Funds from all,
or substantially all, federal income taxes. For federal income tax
purposes, the Brenton U.S. Government Money Market Fund as of March 31,
1998, has capital loss carryforwards which are available to offset future
capital gains, if any:
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYFORWARD EXPIRES
------------ -------
<S> <C> <C>
U.S. Government Money Market Fund....................... $353 2005
U.S. Government Money Market Fund....................... 5 2006
</TABLE>
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.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six months ended September 30, 1998 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Intermediate U.S. Government Securities Fund............. $5,704,672 $3,705,742
Value Equity Fund........................................ 8,128,403 6,530,160
</TABLE>
4. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to the Group by Brenton Bank, N.A.
("Brenton Bank"). Under the terms of the investment advisory agreement,
Brenton Bank is entitled to receive fees computed daily based on a
percentage of the average net assets of each Fund. For the services provided
and expenses assumed pursuant to its investment advisory agreement with the
Group, the Adviser receives fees computed daily and paid monthly, at the
following annual rates: Money Market Fund--0.40% of the Fund's first $250
million in net assets and up to 0.30% of the Fund's net assets in excess of
$250 million; Intermediate Government Fund--up to 0.50% of the Fund's first
$25 million in net assets and up to 0.30% of the Fund's net assets in excess
of $25 million; and Equity Fund--up to 0.74% of the Fund's first $25 million
of net assets and up to 0.60% of the Fund's net assets in excess of $25
million. U.S. Government Money Market Fund had voluntary fee reductions of
$18,988 for the period.
Brenton Bank also serves as custodian to the Funds. The Northern Trust
Company serves as sub-investment adviser to the U.S. Government Money Market
Fund. For such services, Brenton Bank pays the Northern Trust Company an
annual fee of 0.08% of the U.S. Government Money Market Fund's average daily
net assets.
Continued
16
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 1998
(UNAUDITED)
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 of the
Funds.
BISYS Ohio serves as transfer agent to the Funds. Under the terms of the
Transfer Agency agreement, BISYS Ohio is entitled to receive fees based upon
a specified amount per shareholder with specified minimum per portfolio
amounts and surcharges, plus certain out-of-pocket expenses. BISYS Ohio also
serves as fund accountant. Under the terms of the fund accounting agreement,
BISYS Ohio receives fees monthly at an annual rate of $30,000 for the U.S.
Government Money Market Fund, the Intermediate U.S. Government Securities
Fund, and the Value Equity Fund, plus certain out-of-pocket expenses.
The Funds have adopted a Distribution and Shareholder Services Plan in
accordance with Rule 12b-1 under the Investment Company Act of 1940,
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
.50% of the average daily net asset value of the Funds. These fees are used
by BISYS to pay banks, including Brenton Bank, 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.
Continued
17
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 1998
(UNAUDITED)
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the six months ended September 30, 1998:
<TABLE>
<CAPTION>
U.S. GOVERNMENT INTERMEDIATE VALUE
MONEY MARKET U.S. GOVERNMENT EQUITY
FUND SECURITIES FUND FUND
--------------- ---------------- --------
<S> <C> <C> <C>
INVESTMENT ADVISOR FEES:
Annual fee before voluntary
fee reductions (percentage
of average net assets)............ 0.40% * *
Voluntary fee reductions.......... $18,988 N/A N/A
ADMINISTRATION FEES:
Annual fee (percentage of average
net assets)....................... 0.20% 0.20% 0.20%
Voluntary fee reductions.......... $27,376 $14,171 --
12B-1 FEES
Annual fee before voluntary fee
reductions
(percentage of average net
assets)......................... 0.50% 0.50% 0.50%
Voluntary fee reductions.......... $91,142 $67,958 $127,022
ACCOUNTING FEES:.................. $16,095 $16,612 $ 16,661
CUSTODIAN FEES:................... $ 7,123 $ 3,129 $ 6,733
TRANSFER AGENT FEES:.............. $28,037 $13,537 $ 28,676
</TABLE>
* See related Party footnote
Continued
18
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET FUND
------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR AUGUST 9,
ENDED ENDED ENDED ENDED 1994 TO
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1998 1998 1997 1996 1995 (A)
------------- --------- --------- --------- ---------
(UNAUDITED)
<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. 0.024 0.048 0.046 0.050 0.028
------- ------- ------- ------- -------
Total from
Investment
Activities......... 0.024 0.048 0.046 0.050 0.028
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income. (0.024) (0.048) (0.046) (0.050) (0.028)
------- ------- ------- ------- -------
Total Distributions. (0.024) (0.048) (0.046) (0.050) (0.028)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total return
(excludes sales
charge)............ 2.44%(b) 4.96% 4.67% 5.12% 2.84%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets, End of
Period (000)......... $35,006 $42,061 $34,796 $35,436 $27,810
Ratio of expenses to
average net assets... 0.74%(c) 0.72% 0.77% 0.75% 0.97%(c)
Ratio of net
investment income to
average net assets... 4.81%(c) 4.86% 4.57% 4.99% 4.37%(c)
Ratio of expenses to
average net assets
(*).................. 1.46%(c) 1.41% 1.47% 1.46% 1.66%(c)
Ratio of net
investment income to
average net assets
(*).................. 4.08%(c) 4.16% 3.87% 4.28% 3.68%(c)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
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.
19
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
INTERMEDIATE U.S. GOVERNMENT
SECURITIES FUND
------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR AUGUST 9,
ENDED ENDED ENDED ENDED 1994 TO
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1998 1998 1997 1996 1995 (A)
------------- --------- --------- --------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 10.30 $ 9.91 $ 10.14 $ 9.99 $ 10.00
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income. 0.27 0.59 0.57 0.59 0.35
Net realized and
unrealized
gains/(losses) from
investments.......... 0.41 0.40 (0.22) 0.15 (0.02)
------- ------- ------- ------- -------
Total from
Investment
Activities......... 0.68 0.99 0.35 0.74 0.33
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income. (0.27) (0.58) (0.57) (0.59) (0.34)
Net realized gains
from investments..... -- (0.02) (0.01) -- --
------- ------- ------- ------- -------
Total Distributions. (0.27) (0.60) (0.58) (0.59) (0.34)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 10.71 $ 10.30 $ 9.91 $ 10.14 $ 9.99
======= ======= ======= ======= =======
Total return
(excludes sales
charge)............ 6.75%(b) 10.21% 3.51% 7.48% 3.42%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets, End of
Period (000)......... $28,722 $26,332 $34,158 $34,390 $16,438
Ratio of expenses to
average net assets... 0.94%(c) 0.97% 1.02% 1.07% 1.53%(c)
Ratio of net
investment income to
average
net assets........... 5.24%(c) 5.47% 5.64% 5.82% 5.71%(c)
Ratio of expenses to
average net assets
(*).................. 1.52%(c) 1.42% 1.47% 1.55% 2.03%(c)
Ratio of net
investment income to
average net assets
(*).................. 4.66%(c) 5.02% 5.19% 5.34% 5.21%(c)
Portfolio Turnover.... 13.69% 61.25% 78.95% 30.85% 20.69%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions had not occurred, the ratios would have been
as indicated.
(a)Period from commencement of operations.
(b)Not annualized
(c)Annualized
See notes to financial statements.
20
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
VALUE EQUITY FUND
-------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR AUGUST 9,
ENDED ENDED ENDED ENDED 1994 TO
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1998 1998 1997 1996 1995 (A)
------------- --------- --------- --------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 19.81 $ 14.80 $ 12.95 $ 10.83 $ 10.00
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income. 0.04 0.10 0.13 0.10 0.09
Net realized and
unrealized
gains/(losses) from
investments.......... (2.29) 5.41 2.11 2.70 0.83
------- ------- ------- ------- -------
Total from
Investment
Activities......... (2.25) 5.51 2.24 2.80 0.92
------- ------- ------- ------- -------
DISTRIBUTIONS
Net investment income. (0.03) (0.10) (0.13) (0.10) (0.09)
Net realized gains
from investments..... -- (0.40) (0.19) (0.58) --
In excess of net
realized gains from
investments.......... -- -- (0.07) -- --
------- ------- ------- ------- -------
Total Distributions. (0.03) (0.50) (0.39) (0.68) (0.09)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 17.53 $ 19.81 $ 14.80 $ 12.95 $ 10.83
======= ======= ======= ======= =======
Total return
(excludes sales
charges)........... (11.35)%(b) 37.59% 17.44% 26.13% 9.25%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets, End of
Period (000)......... $51,580 $56,948 $41,727 $32,353 $15,628
Ratio of expenses to
average net assets... 1.20%(c) 1.20% 1.28% 1.45% 1.80%(c)
Ratio of net
investment income to
average net assets... 0.41%(c) 0.57% 0.88% 0.83% 1.39%(c)
Ratio of expenses to
average net
assets (*)........... 1.65%(c) 1.65% 1.73% 1.92% 2.30%(c)
Ratio of net
investment income to
average net assets
(*).................. (0.04)%(c) 0.12% 0.43% 0.36% 0.89%(c)
Portfolio Turnover.... 11.44% 33.20% 17.15% 43.80% 18.30%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions had not occurred, the ratios would have been
as indicated.
(a)Period from commencement of operations.
(b)Not annualized
(c)Annualized
See notes to financial statements.
21
<PAGE>
INVESTMENT ADVISER
Brenton Bank
2840 Ingersoll
Des Moines, Iowa 50312
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219
LEGAL COUNSEL
Dechert Price & Rhoads
1775 Eye Street, N.W.
Washington, D.C. 20006
AUDITORS
Ernst & Young LLP
10 West Broad Street
Suite 2300
Columbus, Ohio 43215
11/98
LOGO
BRENTON
MUTUAL FUNDS
LOGO
BRENTON BANK
INVESTMENT ADVISER
SEMI-ANNUAL REPORT
TO
SHAREHOLDERS
SEPTEMBER 30, 1998
