<PAGE>
Message From The Investment Adviser Brenton Mutual Funds
- --------------------------------------------------------------------------------
[DATE TO COME]
Dear Shareholders,
The past six months have been turbulent in all areas of the financial markets.
Along the way, the thirty-year U.S. Treasury Bond went from a yield of 5.63% on
March 31 to 6.06% on September 30 while reaching a peak of 6.38%. The Dow Jones
Industrial Average moved from 9,786.16 to 10,337.0 with a peak of 11,326.0. The
underlying volatility seems to be the result of continued uncertainty over the
strength of the economy. There have been numerous conflicting economic
indicators in recent months that have made predicting the direction of interest
rates and their impact on corporate earnings and equity prices very difficult.
Inflation appears to be picking up but not reaching danger levels and more
importantly, the already slow and long expansion of 35 quarters appears to be
safe at this point.
Intermediate U.S. Government Securities Fund
Most of the various sectors of the fixed income market performed well enough in
September to offset the negative returns of July and August to finish the
quarter in positive territory. If the broad market indexes would have recorded
negative returns for the quarter, it would have been the third quarter in a row
of negative returns. Since these indexes were created in 1973, they have never
posted three consecutive quarters of negative returns.
The Brenton Intermediate U.S. Government Securities Fund showed a negative
return of 0.92% for the last six months (without load)* and a negative return
of 1.61% (without load) during the last year ended September 30, 1999. This
compares with a negative 1.18% for the average Intermediate U.S. Government
bond fund as measured by Lipper U.S. Government Bond Index/2/ for the year
ended September 30, 1999. The Brenton Intermediate U.S. Government Securities
Fund showed an average annual return of 6.01% (without load) for
the five-year period ended September 30, 1999 and an annual average return of
5.73% (without load) since the inception date of August 9, 1994. The duration
of the fund continues to resemble that of its benchmark, the Merrill Lynch 3-7
Year Government Index./3/ Our outlook continues to be favorable for financial
markets and interest rates may move lower from current levels. With this in
mind, prospects for achieving solid real returns for shareholders are good.
Value Equity Fund
The Brenton Value Equity Fund has a very solid yearly return as of September
30, 1999 of 27.81% (without load) compared to the Standard and Poors 500
Index/4/ return of 27.81%. The six-month return for the fund was -0.08%
(without load)* versus the index return of 0.36%. The Value Equity Fund had
average annual returns of 20.26% (without load) for the five-year period ended
September 30, 1999 and 19.72% (without load) since the inception date of August
9, 1994.
We view any weakness in the market as an opportunity to add high quality
companies with steady long-term earnings growth to our portfolio at levels well
below recent highs. Our view headed into year-end continues to be guarded
optimism. We feel that there will likely be very few large disturbances caused
by Y2K and most of the volatility will come from investor fear. As we are now
wrapping up one of the big earnings announcement seasons we hope that this will
bring back some stability to all financial markets. As we have seen all year,
any weakness in quarterly earnings can spell disaster for share prices.
U.S. Government Money Market Fund/1/
The Brenton U.S. Government Money Market Fund continues to produce solid
returns for investors. The total return over the last year ended September 30,
1999 was 4.14%. The Brenton U.S. Government Money Market Fund (Class M) had an
average
- --------------------------------------------------------------------------------
1
<PAGE>
Message From The Investment Adviser Brenton Mutual Funds
- --------------------------------------------------------------------------------
annual return of 4.75% for the five-year period ended September 30, 1999 and an
average annual return of 4.71% since the inception date of August 9, 1994. The
seven-day yield of the fund was 4.38% as of September 30, 1999. The Federal
Reserve has increased the fed funds rate twice in recent months to 5.25% and
may tighten once more prior to year-end putting the benchmark overnight rate at
5.50%. We continue to maintain a short average maturity and may extend this as
interest rates rise. As always, purchases continue to be focused in high
quality U.S. government agency obligations.
We appreciate the opportunity to serve your investment needs and will work hard
to continue to earn 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/ Matt J. Schmitt
Matt J. Schmitt
Assistant Vice President/Portfolio Manager
Brenton Investments, Inc.
*The Brenton Intermediate U.S. Government Securities Fund, which imposes a
3.50% maximum sales charge, showed loaded returns of -4.36%, -5.07%, -5.26%,
and 5.00% for the sixth month period, one-year period, and five-year periods
ending September 30, 1999, and since the inception date of August 9, 1994,
respectively. The Brenton Value Equity Fund, which imposes a 4.50% maximum
sales charge, showed loaded returns of -4.58%, 22.03%, 19.16%, and 18.66% for
the sixth month period, one-year period, and five-year periods ending September
30, 1999, and since the inception date of August 9, 1994, respectively.
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 fund's 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 or 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.
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.
- --------------------------------------------------------------------------------
2
<PAGE>
Table of Contents
Statements of Assets and Liabilities
Page 4
Statements of Operations
Page 5
Statements of Changes in Net Assets
Page 6
Schedules of Portfolio Investments
Page 8
Notes to Financial Statements
Page 13
Financial Highlights
Page 18
3
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Assets and Liabilities
September 30, 1999
(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
$52,234,539; $25,842,220;
$34,949,673, respectively)....... $52,234,539 $25,386,613 $53,151,341
Cash.............................. 991 -- --
Interest and dividends receivable. -- 443,523 61,604
Prepaid expenses and other assets. 7,239 3,271 6,794
----------- ----------- -----------
Total Assets.................. 52,242,769 25,833,407 53,219,739
----------- ----------- -----------
LIABILITIES:
Dividends payable................. 177,901 118,424 1,030
Accrued expenses and other
payables
Investment advisory fees........ 12,446 10,480 29,767
Administration fees............. 880 283 1,157
Distribution and shareholder
service fees................... 2,915 425 2,241
Other fees...................... 42,453 14,808 37,862
----------- ----------- -----------
Total Liabilities............. 236,595 144,420 72,057
----------- ----------- -----------
Total Net Assets.............. $52,006,174 $25,688,987 $53,147,682
=========== =========== ===========
NET ASSETS:
Capital........................... $52,006,527 $26,099,915 $27,907,160
Undistributed net investment
income........................... -- 13,513 11,662
Undistributed (distributions in
excess of) net realized gains.... (353) 31,166 7,027,192
Net unrealized appreciation
(depreciation) from investments.. -- (455,607) 18,201,668
----------- ----------- -----------
Net Assets.................... $52,006,174 $25,688,987 $53,147,682
=========== =========== ===========
Single Class or Class M Shares
Net Assets........................ $41,322,756 $25,688,987 $53,147,682
Outstanding units of beneficial
interest (shares)................ 41,323,150 2,587,681 2,702,270
----------- ----------- -----------
Net asset value--redemption price
per share........................ $ 1.00 $ 9.93 $ 19.67
=========== =========== ===========
Maximum Sales Charge.............. -- 3.50% 4.50%
----------- ----------- -----------
Maximum Offering Price per share
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to
the nearest cent)................ $ 1.00(a) $ 10.29 $ 20.60
=========== =========== ===========
Class S Shares
Net Assets........................ $10,683,418
Outstanding units of beneficial
interest (shares)................ 10,683,417
===========
Net asset value--offering and
redemption price per share....... $ 1.00(a)
===========
</TABLE>
- --------
(a) Offering price and redemption price are the same for the U.S. Government
Money Market Fund.
See notes to financial statements.
4
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Operations
For the Period Ended September 30, 1999
(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................... $1,223,765 $ 823,054 $ 4,807
Dividend income................... -- 6,765 416,002
Foreign tax withholding........... -- -- (988)
---------- --------- -----------
Total income.................... 1,223,765 829,819 419,821
---------- --------- -----------
EXPENSES:
Investment advisory fees.......... 98,494 65,355 193,313
Administration fees............... 49,247 26,903 58,604
Distribution and shareholder
service fees--Single Class or
Class M.......................... 95,598 67,257 146,511
Distribution and shareholder
service fees--Class S............. 39,525 -- --
Custodian fees.................... 8,211 2,177 7,214
Fund accounting fees.............. 20,053 14,671 15,835
Transfer agent fees............... 54,037 11,848 33,548
Trustees' fees.................... 3,505 1,400 2,972
Other............................. 40,937 18,243 42,272
---------- --------- -----------
Total Expenses.................. 409,607 207,854 500,269
Less: Fee waivers................. (155,144) (78,018) (131,861)
---------- --------- -----------
Net expenses.................... 254,463 129,836 368,408
---------- --------- -----------
Net Investment Income............. 969,302 699,983 51,413
---------- --------- -----------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains from investment
transactions...................... 5 19,686 3,847,780
Net change in unrealized
depreciation from investments..... -- (980,245) (3,541,529)
---------- --------- -----------
Net realized/unrealized
gains/(losses) from investments... 5 (960,559) 306,251
---------- --------- -----------
Change in net assets resulting
from operations................... $ 969,307 $(260,576) $ 357,664
========== ========= ===========
</TABLE>
See notes to financial statements.
5
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
---------------------------
Period Ended Year Ended
September 30, March 31,
1999 1999
------------- ------------
(Unaudited)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.......................... $ 969,302 $ 1,970,730
Net realized gains from investment
transactions................................... 5 --
------------ ------------
Change in net assets resulting from operations.. 969,307 1,970,730
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class M....................................... (771,078) (1,754,516)
Class S....................................... (198,224) (216,840)(a)
------------ ------------
Change in net assets from shareholder
distributions................................... (969,302) (1,971,356)
------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued
Class M....................................... 62,772,080 82,586,499
Class S....................................... 13,710,309 25,295,714(a)
Dividends reinvested
Class M....................................... 179,417 379,814
Class S....................................... 192,277 185,513(a)
Cost of shares redeemed
Class M....................................... (60,026,165) (86,628,864)
Class S....................................... (13,288,679) (15,411,718)(a)
------------ ------------
Change in net assets from capital share
transactions.................................... 3,539,239 6,406,958
------------ ------------
Change in net assets............................ 3,539,244 6,406,332
NET ASSETS:
Beginning of period............................ 48,466,930 42,060,598
------------ ------------
End of period.................................. $ 52,006,174 $ 48,466,930
============ ============
SHARE TRANSACTIONS:
Issued
Class M....................................... 62,772,432 82,586,499
Class S....................................... 13,710,309 25,295,714(a)
Reinvested
Class M....................................... 179,417 379,814
Class S....................................... 192,277 185,513(a)
Redeemed
Class M....................................... (60,026,164) (86,628,864)
Class S....................................... (13,288,678) (15,411,718)(a)
------------ ------------
Change in shares................................ 3,539,593 6,406,958
============ ============
</TABLE>
(a) For the period from October 8, 1998 (commencement of operations) to March
31, 1999.
See notes to financial statements.
6
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Intermediate U.S. Government Value Equity
Securities Fund Fund
------------------------------- ---------------------------
Period Ended Year Ended Period Ended Year Ended
September 30, March 31, September 30, March 31,
1999 1999 1999 1999
--------------- -------------- ------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 699,983 $ 1,485,737 $ 51,413 $ 207,568
Net realized gains from
investment
transactions.......... 19,686 21,610 3,847,780 7,138,635
Net change in
unrealized
appreciation
(depreciation) from
investments........... (980,245) 130,863 (3,541,529) (29,860)
-------------- -------------- ------------ ------------
Change in net assets
resulting from
operations.............. (260,576) 1,638,210 357,664 7,316,343
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (708,211) (1,484,965) (44,431) (199,509)
From net realized gain
on investment......... -- (203,382) -- (6,896,958)
-------------- -------------- ------------ ------------
Change in net assets
from shareholder
distributions.......... (708,211) (1,688,347) (44,431) (7,096,467)
-------------- -------------- ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 2,013,520 9,151,758 3,726,394 11,132,692
Dividends reinvested... 331,041 800,027 75,619 5,378,568
Cost of shares
redeemed.............. (4,525,811) (7,395,056) (12,884,999) (11,761,484)
-------------- -------------- ------------ ------------
Change in net assets
from capital share
transactions........... (2,181,250) 2,556,729 (9,082,986) 4,749,776
-------------- -------------- ------------ ------------
Change in net assets.... (3,150,037) 2,506,592 (8,769,753) 4,969,652
NET ASSETS:
Beginning of period.... 28,839,024 26,332,432 61,917,435 56,947,783
-------------- -------------- ------------ ------------
End of period.......... $ 25,688,987 $ 28,839,024 $ 53,147,682 $ 61,917,435
============== ============== ============ ============
Accumulated
undistributed net
investment income
included in net assets,
end of period.......... $ 13,513 $ 21,741 $ 11,662 $ 4,680
-------------- -------------- ------------ ------------
SHARE TRANSACTIONS:
Issued................. 199,615 881,371 181,822 578,439
Reinvested............. 32,737 76,812 3,778 300,904
Redeemed............... (447,503) (710,997) (626,688) (611,295)
-------------- -------------- ------------ ------------
Change in shares........ (215,151) 247,186 (441,088) 268,048
============== ============== ============ ============
</TABLE>
See notes to financial statements.
7
<PAGE>
THE COVENTRY GROUP
BRENTON U.S. GOVERNMENT MONEY MARKET FUND
Schedule of Portfolio Investments
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
---------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies (100.4%):
Federal Farm Credit Bank (12.5%):
6,520,000 Federal Farm Credit Bank, 5.08%,* 10/22/99, Discount
Note................................................ $ 6,500,679
-----------
Federal Home Loan Bank: (87.9%):
12,516,000 Federal Home Loan Bank, 5.20%,* 10/1/99, Discount
Note................................................ 12,516,000
13,500,000 Federal Home Loan Bank, 5.14%,* 10/15/99, Discount
Note................................................ 13,472,857
8,000,000 Federal Home Loan Bank, 5.22%,* 11/3/99, Discount
Note................................................ 7,961,583
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
---------- ---------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies, continued:
Federal Home Loan Bank, continued:
12,000,000 Federal Home Loan Bank, 5.46%,* 1/28/00, Discount
Note............................................... $11,783,420
-----------
45,733,860
-----------
Total U.S. Government Agencies 52,234,539
-----------
Total (Amortized Cost $52,234,539)(a)--100.4% 52,234,539
Other assets in excess of liabilities--(0.4)% (228,365)
-----------
TOTAL NET ASSETS--100.0% $52,006,174
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $52,006,174.
*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.
8
<PAGE>
THE COVENTRY GROUP
BRENTON INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
Schedule of Portfolio Investments
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Investment Companies (0.1%):
26,648 Goldman Federal Portfolio Money Market................. $ 26,648
-----------
Total Investment Companies 26,648
-----------
U.S. Government Agencies (87.0%):
Fannie Mae (27.6%):
2,900,000 5.75%, 6/15/05......................................... 2,808,041
1,500,000 6.74%, 7/9/07.......................................... 1,509,930
448,293 6.50%, 3/1/09.......................................... 443,667
1,459,867 7.50%, 11/1/17......................................... 1,474,918
841,236 7.50%, 12/1/25......................................... 846,755
-----------
7,083,311
-----------
Federal Home Loan Bank: (51.9%):
3,000,000 5.69%, 4/15/03......................................... 2,931,060
1,000,000 6.89%, 4/6/04.......................................... 1,014,640
3,500,000 Federal Home Loan Bank, 5.52%, 4/13/04................. 3,367,699
1,000,000 7.36%, 7/1/04.......................................... 1,034,100
1,000,000 7.32%, 4/21/05......................................... 1,035,560
3,000,000 6.32%, 6/28/05......................................... 2,967,720
1,000,000 6.15%, 11/28/05........................................ 980,380
-----------
13,331,159
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies, continued:
Freddie Mac (6.4%):
1,000,000 6.75%, 8/1/05.......................................... $ 1,009,920
649,848 6.50%, 7/1/08.......................................... 640,504
-----------
1,650,424
-----------
Ginnie Mae (1.1%):
285,825 7.00%, 5/1/10.......................................... 284,931
-----------
Total U.S. Government Agencies 22,349,825
-----------
U.S. Treasury Notes (11.7%):
1,000,000 6.38%, 1/15/00......................................... 1,003,360
2,000,000 5.88%, 9/30/02......................................... 2,006,780
-----------
Total U.S. Treasury Notes 3,010,140
-----------
Total (Cost $25,842,220)(a)--98.8% 25,386,613
Other assets in excess of liabilities--1.2% 302,374
-----------
TOTAL NET ASSETS--100.0% $25,688,987
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $25,688,987.
(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... $ 49,986
Unrealized depreciation... (505,593)
---------
Net unrealized
appreciation.............. $(455,607)
=========
</TABLE>
See notes to financial statements.
9
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------------ ---------
<C> <S> <C>
Common Stocks (98.7%):
Aerospace/Defense (0.8%):
7,000 General Motors Corp.--Class H(b)............................ $ 400,750
---------
Auto Parts (0.1%):
4,892 Delphi Automotive Systems................................... 78,578
---------
Banks (6.9%):
15,276 Bank Of America Corp........................................ 850,682
14,850 Bank One Corp. ............................................. 516,966
10,000 Chase Manhattan Corp........................................ 753,750
6,000 First Union Corp. .......................................... 213,375
10,000 U.S. Bancorp................................................ 301,875
27,000 Wells Fargo Co.............................................. 1,069,874
---------
3,706,522
---------
Beverages--Non-alcoholic (1.8%):
9,200 Coca-Cola Co................................................ 442,175
16,700 PepsiCo, Inc................................................ 505,175
---------
947,350
---------
Beverages--Wines & Spirits (1.3%):
10,000 Anheuser-Busch Cos., Inc. .................................. 700,625
---------
Capital Equipment (1.4%):
10,000 Illinois Tool Works, Inc.................................... 745,625
---------
Chemicals--Diversified (0.6%):
5,019 Du Pont (E.I.) de Nemours & Co.............................. 305,532
---------
Chemicals--Speciality (0.7%):
11,000 Sigma-Aldrich Corp.......................................... 349,250
---------
Computer Software (8.7%):
5,000 America Online, Inc......................................... 520,000
15,000 Cisco Systems, Inc.(b)...................................... 1,028,437
8,000 Dell Computer Corp.(b)...................................... 334,500
7,000 Electronic Data Systems Corp................................ 370,563
6,500 Hewlett-Packard Co.......................................... 598,000
20,000 Microsoft Corp.(b).......................................... 1,811,249
---------
4,662,749
---------
Computers (3.6%):
10,000 EMC Corp.(b)................................................ 714,375
10,000 International Business Machines Corp........................ 1,213,750
---------
1,928,125
---------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Containers & Packaging (0.5%):
10,000 Crown Cork & Seal Co., Inc................................ $ 242,500
-----------
Cosmetics/Personal Care (0.5%):
8,000 Gillette Co............................................... 271,500
-----------
Defense (0.5%):
6,000 Raytheon Co-Class A....................................... 291,000
-----------
Diversified Operations (5.1%):
16,600 General Electric Co....................................... 1,968,137
8,100 Minnesota Mining & Manufacturing Co....................... 778,106
-----------
2,746,243
-----------
Electrical Equipment (3.0%):
6,000 Emerson Electric Co....................................... 379,125
11,785 Tyco International Ltd.................................... 1,216,801
-----------
1,595,926
-----------
Electronic Components (2.5%):
12,000 Intel Corp. .............................................. 891,750
5,000 Motorola, Inc............................................. 440,000
-----------
1,331,750
-----------
Electronic Components--Semiconductors (1.2%):
10,000 Xilinx, Inc.(b)........................................... 655,313
-----------
Energy (0.6%):
11,000 Reliant Energy, Inc. ..................................... 297,688
-----------
Financial Services (5.4%):
22,000 Citigroup, Inc............................................ 967,999
7,500 Federal Home Loan Mortgage Corp........................... 390,000
12,000 MGIC Investment Corp...................................... 573,000
8,000 Morgan Stanley Dean Witter & Co........................... 713,500
10,000 Washington Mutual Inc. ................................... 292,500
-----------
2,936,999
-----------
Food Products & Services (2.3%):
20,000 ConAgra, Inc.............................................. 451,250
32,600 Sara Lee Corp. ........................................... 764,063
-----------
1,215,313
-----------
Health Care--Drugs (3.8%):
20,000 Bristol Myers Squibb Co................................... 1,350,000
10,000 Merck & Co., Inc.......................................... 648,125
-----------
1,998,125
-----------
</TABLE>
Continued
10
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments, Continued
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Health Care--General Products (2.4%):
13,600 Johnson & Johnson......................................... $ 1,249,500
-----------
Household--General Products (2.1%):
10,000 Newell Rubbermaid Inc..................................... 285,625
9,000 Procter & Gamble Co. ..................................... 843,750
-----------
1,129,375
-----------
Insurance (2.8%):
7,500 American International Group, Inc......................... 652,031
8,000 Reliastar Financial Corp. 268,000
7,500 Safeco Corp............................................... 210,000
12,000 UnumProvident Corp. ...................................... 353,250
-----------
1,483,281
-----------
Medical Instruments (0.4%):
6,000 Medtronic, Inc............................................ 213,000
-----------
Medical-Hospital Management & Services (0.7%):
20,000 Tenet Healthcare Corp.(b)................................. 351,250
-----------
Medical--Wholesale Drug Distribution (1.9%):
7,000 Lilly (Eli) & Co. ........................................ 448,000
15,000 Pfizer, Inc............................................... 539,063
-----------
987,063
-----------
Motor Vehicles (0.8%):
7,000 General Motors Corp....................................... 440,563
-----------
Multimedia (0.7%):
6,000 Time Warner Inc........................................... 364,500
-----------
Natural Gas Utility (0.8%):
15,000 Baker Hughes, Inc......................................... 435,000
-----------
Office Supplies, Automation & Equipment (1.9%):
8,000 Avery Dennison............................................ 422,000
10,000 Pitney Bowes, Inc. ....................................... 609,375
-----------
1,031,375
-----------
Oil & Gas (1.8%):
10,000 Burlington Resources, Inc................................. 367,500
10,000 Royal Dutch Petroleum Co.................................. 590,625
-----------
958,125
-----------
Oil Companies--Integrated (3.7%):
5,000 BP Amoco Co., PLC......................................... 554,063
11,000 Exxon Corp. .............................................. 835,312
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Oil Companies, continued:
5,500 Mobil Corp................................................ $ 554,125
-----------
1,943,500
-----------
Oil Field Services (1.7%):
10,563 Conoco Class B............................................ 289,162
10,000 Schlumberger Ltd.......................................... 623,125
-----------
912,287
-----------
Paint & Related Products (0.6%):
15,000 Sherwin-Williams Co....................................... 314,063
-----------
Paper & Related Products (1.8%):
9,000 Kimberly-Clark Corp....................................... 472,500
10,000 Lowe's Cos., Inc.......................................... 487,500
-----------
960,000
-----------
Pharmaceuticals (2.0%):
9,000 Abbott Laboratories....................................... 330,750
9,000 Schering-Plough Corp...................................... 392,625
5,000 Warner Lambert Co. ....................................... 331,875
-----------
1,055,250
-----------
Restaurants (0.8%):
10,000 McDonald's Corp........................................... 430,000
-----------
Retail--Convenience Stores (0.9%):
35,000 Casey's General Stores, Inc............................... 469,219
-----------
Retail--General Merchandise (1.8%):
20,000 Wal Mart Stores, Inc...................................... 951,250
-----------
Retail--Specialty Stores (1.4%):
11,000 Home Depot, Inc........................................... 754,875
-----------
Steel (0.5%):
6,000 Nucor Corp................................................ 285,750
-----------
Technology (0.7%):
9,000 NSTAR..................................................... 348,750
-----------
Telecommunications (1.8%):
13,000 MCI Worldcom, Inc.(b)..................................... 934,375
-----------
Telecommunications Equipment (1.6%):
13,000 Lucent Technologies, Inc.................................. 843,375
-----------
Tobacco (0.8%):
12,000 Philip Morris Cos., Inc. ................................. 410,250
-----------
</TABLE>
Continued
11
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments, Continued
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Utilities--Electric (1.7%):
15,000 AES Corp.(b).............................................. $ 885,000
-----------
Utilities--Gas & Pipeline (0.9%):
12,000 Sonat, Inc. .............................................. 476,250
-----------
Utilities--Telephone (5.0%):
15,000 AT&T Corp................................................. 652,500
14,800 GTE Corp.................................................. 1,137,750
17,000 SBC Communications, Inc. ................................. 868,063
-----------
2,658,313
-----------
Wholesale (1.9%):
16,000 Arrow Electronics, Inc.(b)................................ 282,000
20,000 Sysco Corp................................................ 701,250
-----------
983,250
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- -------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Wholesale & International Trade (1.5%):
11,000 Costco Wholesale Corp................................... $ 792,000
-----------
Total Common Stocks 52,458,252
-----------
Investment Companies (1.3%):
693,089 Goldman Federal Money Market Portfolio.................. 693,089
-----------
Total Investment Companies 693,089
-----------
Total (Cost $34,949,673)(a)--100.0% 53,151,341
Other assets in excess of liabilities--0.00% (3,659)
-----------
TOTAL NET ASSETS--100.% $53,147,682
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $53,147,682.
(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.. $19,830,253
Unrealized depreciation.. (1,628,586)
-----------
Net unrealized
appreciation............. $18,201,668
===========
</TABLE>
(b) Represents non-income producing securities.
PLC--Public Limited Company
See notes to financial statements.
12
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements
September 30, 1999
(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"), each a series of the Group, the Funds earned no investment income
and had no operations other than incurring organizational expenses.
The U.S. Government 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 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
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
shares of beneficial interest, with a par value of $0.01 per share. The
Intermediate U.S. Government Securities Fund and Value Equity Fund each
currently offer a single class of shares. The U.S. Government Money Market
Fund offers two classes of shares, Class M Shares and Class S Shares, which
have different expenses that affect performance. The U.S. Government Money
Market Fund commenced offering Class S Shares on October 8, 1998. Shares
issued by that Fund prior to October 8, 1998 have been redesignated Class M
Shares. Shares of the Intermediate U.S. Government Securities Fund and Value
Equity Fund, and Class M Shares of the U.S. Government Money Market Fund,
are offered for sale to the general public. Class S shares of the U.S.
Government Money Market Fund are offered only to certain eligible investors.
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 affect the reported amounts and disclosures. Actual amounts
could differ from those estimates.
Continued
13
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
September 30, 1999
(Unaudited)
Securities Valuation:
Investments of the 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
Intermediate U.S. Government Securities Fund and the Value Equity Fund
(collectively "the variable net asset value funds") are valued at their
market values determined on the basis of the latest available bid
quotation in the principal market (closing sales prices if the principal
market is an exchange) in which such securities are normally traded.
Investments in investment companies are valued at their respective net
asset values as reported by such companies. Securities, including
restricted securities, for which market quotations are not readily
available, are valued at fair market value 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.
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.
Continued
14
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
September 30, 1999
(Unaudited)
Federal Income Taxes:
It is the policy of each of the Funds to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve each of the Funds from all,
or substantially all, federal income taxes. At September 30, 1999, the
U.S. Government Money Market Fund had 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
period ended September 30, 1999 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
---------- ----------
<S> <C> <C>
Intermediate U.S. Government Securities Fund............ $4,229,352 $6,107,171
Value Equity Fund....................................... 1,842,089 9,099,676
</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: U.S. Government 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 U.S. Government Securities
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 Value 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.
Continued
15
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
September 30, 1999
(Unaudited)
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, the Northern Trust Company receives an annual fee
from Brenton Bank based on 0.08% of the U.S. Government Money Market Fund's
average daily net assets.
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. The administrator
generally assists in all aspects of the Funds' administration and operation.
For expenses assumed and services provided as administrator pursuant to its
management and administration agreement with the Funds, BISYS receives a fee
from each Fund equal to the lesser of a fee computed daily at an annual rate
of (0.20%) of the Fund's average daily net assets or such other fee as may
be agreed upon in writing by such Fund and the BISYS.
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 $40,000 for the U.S.
Government Money Market Fund, $30,000 for the Intermediate U.S. Government
Securities Fund, and the Value Equity Fund, plus certain out-of-pocket
expenses.
Certain trustees and officers of the Fund are affiliated with BISYS.
Compensation paid from the Fund to trustees not affiliated with BISYS during
the period ended September 30, 1999 was $3,505 for the U.S. Government Money
Market, $1,400 for the Intermediate U.S. Government Securities Fund, and
$2,972 for the Value Equity Fund. No remuneration was paid from the Fund to
any other officer or trustee.
The Funds (excluding Class S shares of U.S. Government Money Market Fund)
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 (and Class M shares of the U.S. Government Money Market Fund) are
authorized to pay or reimburse BISYS, as distributor, a periodic amount,
calculated at an annual rate not to exceed 0.50% of average daily net
assets. Class S shares of U.S. Government Money Market Fund incur
distribution and services fees at an annual rate not to exceed 0.75% of
average daily net assets. 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. As
a result of the payment of sales loads and 12b-1 fees, long-term
Shareholders may pay more than the economic equivalent of the maximum front-
end sales charge permitted by the National Association of Securities
Dealers, Inc. (the "NASD").
Continued
16
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
September 30, 1999
(Unaudited)
BISYS is also entitled to receive commissions on sales of shares of the
Funds. For the period ended September 30, 1999, BISYS received $4,664 from
commissions earned on sales of shares of the Fund, of which $3,317 was
reallowed to broker/dealers affiliated with Brenton Bank.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the period ended September 30, 1999:
<TABLE>
<CAPTION>
U.S. Government Intermediate
Money Market U.S. Government Value Equity
Fund Securities Fund Fund
--------------- --------------- ------------
<S> <C> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)....................... 0.40% 0.48% 0.66%
Voluntary fee reductions....... $24,623 -- --
Administration Fees:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)....................... 0.20% 0.20% 0.20%
Voluntary fee reductions....... $12,311 $13,451 --
12b-1 Fees--Single or Class M:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)....................... 0.50% 0.50% 0.50%
Voluntary fee reductions....... $91,860 $64,567 $131,861
12b-1 Fees--Class S:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)....................... 0.30%
Voluntary fee reductions....... $26,350 -- --
</TABLE>
17
<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
----------------------------------------------------------------
Class M
----------------------------------------------------------------
Six Months Year Year Year Year August 9,
Ended Ended Ended Ended Ended 1994 to
September 30, March 31, March 31, March 31, March 31, March 31,
1999 1999 1998 1997 1996 1995(a)
------------- --------- --------- --------- --------- ---------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income. 0.020 0.045 0.048 0.046 0.050 0.028
------- ------- ------- ------- ------- -------
Total from
Investment
Activities......... 0.020 0.045 0.048 0.046 0.050 0.028
------- ------- ------- ------- ------- -------
Distributions
Net investment income. (0.020) (0.045) (0.048) (0.046) (0.050) (0.028)
------- ------- ------- ------- ------- -------
Total Distributions. (0.020) (0.045) (0.048) (0.046) (0.050) (0.028)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total return
(excludes sales
charge)............ 2.01%(b) 4.58% 4.96% 4.67% 5.12% 2.84%(b)
Ratios/Supplementary
Data:
Net Assets, End of
period (000)......... $41,323 $38,397 $42,061 $34,796 $35,436 $27,810
Ratio of expenses to
average net assets... 0.98%(c) 0.81% 0.72% 0.77% 0.75% 0.97%(c)
Ratio of net
investment income to
average net assets... 3.98%(c) 4.47% 4.86% 4.57% 4.99% 4.37%(c)
Ratio of expenses to
average net assets*.. 1.56%(c) 1.49% 1.41% 1.47% 1.46% 1.66%(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
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
-------------------------
Class S
-------------------------
Six Months October 8,
Ended 1998 to
September 30, March 31,
1999 1999(a)
------------- ----------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............... $ 1.000 $ 1.000
------- -------
Investment Activities
Net investment income............................ 0.019 0.020
------- -------
Total from Investment Activities............... 0.019 0.020
------- -------
Distributions
Net investment income............................ (0.019) (0.020)
------- -------
Total Distributions............................ (0.019) (0.020)
------- -------
Net Asset Value, End of Period..................... $ 1.000 $ 1.000
======= =======
Total return (excludes sales charge)........... 1.89%(b) 1.89%(b)
Ratios/Supplementary Data:
Net Assets, End of period (000).................. $10,683 $10,070
Ratio of expenses to average net assets.......... 1.21%(c) 1.11%(c)
Ratio of net investment income to average net
assets.......................................... 3.76%(c) 3.94%(c)
Ratio of expenses to average net assets (*)...... 1.81%(c) 1.81%(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 Year August 9,
Ended Ended Ended Ended Ended 1994 to
September 30, March 31, March 31, March 31, March 31, March 31,
1999 1999 1998 1997 1996 1995(a)
------------- --------- --------- --------- --------- ---------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.29 $ 10.30 $ 9.91 $ 10.14 $ 9.99 $ 10.00
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income. 0.27 0.54 0.59 0.57 0.59 0.35
Net realized and
unrealized
gains/(losses) from
investments.......... (0.36) 0.06 0.40 (0.22) 0.15 (0.02)
------- ------- ------- ------- ------- -------
Total from
Investment
Activities......... (0.09) 0.60 0.99 0.35 0.74 0.33
------- ------- ------- ------- ------- -------
Distributions
Net investment income. (0.27) (0.54) (0.58) (0.57) (0.59) (0.34)
Net realized gains.... -- (0.07) (0.02) (0.01) -- --
------- ------- ------- ------- ------- -------
Total Distributions. (0.27) (0.61) (0.60) (0.58) (0.59) (0.34)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 9.93 $ 10.29 $ 10.30 $ 9.91 $ 10.14 $ 9.99
======= ======= ======= ======= ======= =======
Total return
(excludes sales
charge)............ (0.92)%(b) 6.00% 10.21% 3.51% 7.48% 3.42%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)......... $25,689 $28,839 $26,332 $34,158 $34,390 $16,438
Ratio of expenses to
average net assets... 0.97%(c) 0.91% 0.97% 1.02% 1.07% 1.53%(c)
Ratio of net
investment income to
average net assets... 5.21%(c) 5.21% 5.47% 5.64% 5.82% 5.71%(c)
Ratio of expenses to
average net
assets (*)........... 1.55%(c) 1.49% 1.42% 1.47% 1.55% 2.03%(c)
Portfolio Turnover.... 16.12% 17.18% 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 Year August 9,
Ended Ended Ended Ended Ended 1994 to
September 30, March 31, March 31, March 31, March 31, March 31,
1999 1999 1998 1997 1996 1995(a)
------------- --------- --------- --------- --------- ---------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 19.70 $ 19.81 $ 14.80 $ 12.95 $ 10.83 $ 10.00
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income. 0.02 0.07 0.10 0.13 0.10 0.09
Net realized and
unrealized
gains/(losses) from
investments.......... (0.03) 2.32 5.41 2.11 2.70 0.83
------- ------- ------- ------- ------- -------
Total from
Investment
Activities......... (0.01) 2.39 5.51 2.24 2.80 0.92
------- ------- ------- ------- ------- -------
Distributions
Net investment income. (0.02) (0.07) (0.10) (0.13) (0.10) (0.09)
Net realized gains.... -- (2.43) (0.40) (0.19) (0.58) --
In excess of net
realized gains from
investments.......... -- -- -- (0.07) -- --
------- ------- ------- ------- ------- -------
Total Distributions. (0.02) (2.50) (0.50) (0.39) (0.68) (0.09)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 19.67 $ 19.70 $ 19.81 $ 14.80 $ 12.95 $ 10.83
======= ======= ======= ======= ======= =======
Total return
(excludes sales
charges)........... (0.08)%(b) 13.40% 37.59% 17.44% 26.13% 9.25%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)......... $53,148 $61,917 $56,948 $41,727 $32,353 $15,628
Ratio of expenses to
average net assets... 1.26%(c) 1.20% 1.20% 1.28% 1.45% 1.80%(c)
Ratio of net
investment income to
average net assets... 0.16%(c) 0.36% 0.57% 0.88% 0.83% 1.39%(c)
Ratio of expenses to
average net assets
(*).................. 1.71%(c) 1.65% 1.65% 1.73% 1.92% 2.30%(c)
Portfolio Turnover.... 3.28% 24.28% 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
11/99
[LOGO OF
BRENTON
MUTUAL FUNDS]
[LOGO OF
BRENTON BANK
INVESTMENT ADVISER]
SEMI-ANNUAL REPORT
TO
SHAREHOLDERS
September 30, 1999
