<PAGE>
Message From The Investment Adviser Brenton Mutual Funds
- --------------------------------------------------------------------------------
April 27, 1999
Dear Shareholders:
The last year has been another period of mostly solid gains in financial asset
prices, especially large capitalization domestic stocks. Investor and consumer
confidence remains high with solid economic growth, little inflation and strong
real income growth contributing to the favorable conditions. Government policy
has been supportive of strong economic and financial market conditions and it
now appears we are headed for a second yearly federal budget surplus in the $70
billion range. Perhaps more importantly, the economic advance has been balanced
and at this juncture there appears to be further gains ahead.
Although conditions seem to be generally favorable, as always, there are
possible problems on the horizon. Continued difficulties related to the
recession in developing markets are a real possibility. In addition, should the
military conflict underway in the Yugoslavic province of Kosovo
continue and spread, the implications for fiscal policy and inflation would be
negative. On balance, we believe the environment will continue to be positive
for financial assets although only moderate earnings growth should mean gains
in stock prices will be below those of the last few years.
Intermediate U.S. Government Securities Fund
Interest rates on government securities drifted higher over the last six months
with the 5 year Treasury yield moving from 4.45% to 5.16%, and the thirty year
bond yield rising from 4.98% to 5.59%. Few signs have yet emerged of the widely
predicted slowdown in economic growth. It now appears that Gross Domestic
Product (GDP) will grow by 3% or more in the first half of 1999, and current
yields reflect that fact. After reducing the federal funds rate by 3/4 of 1% in
the fall of 1998 we now anticipate that rates will be contained within a range
of 5.25% and 6.00% for the next several months. Should we
[GRAPH APPEARS HERE]
Intermediate U.S. Government Securities Fund
Value of a $10,000 Investment
Intermediate U.S. Intermediate U.S. Merrill Lynch
Government Government Government
Securities Fund Load Securities Fund No Load Index
8/9/94 9650 10000 10000
3/31/95 9983 10342 10372
3/31/96 10730 11116 11465
3/31/97 11106 11506 11955
3/31/98 12238 12678 13236
3/31/99 12973 13440 14151
Since
Date 1 Year Inception
(08/09/94)
03/31/99 2.33%* 5.77%*
* Reflects a 3.50% Sales Charge.
Past performance is not predictive of future results.
The performance of the Brenton Intermediate U.S. Government Securities Fund is
measured against the Merrill Lynch 3-7 Year Government Index, which is
generally representative of the performance of 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. The index
is unmanaged and cannot be invested in directly. Investment return and net
asset value will fluctuate so an investor's shares when redeemed, may be worth
more or less than the original cost.
- --------------------------------------------------------------------------------
1
<PAGE>
Message From The Investment Adviser Brenton Mutual Funds
- -------------------------------------------------------------------------------
see signs of the long anticipated slowdown in economic growth later this
summer, interest rates would have room to move lower later this year.
The Brenton Intermediate U.S. Government Securities Fund showed a negative
return of -.70% for the last six months (without load), but rose to 6.00%
(without load) during the last year. We are generally pleased with this return
since the average Intermediate U.S. Government bond fund as measured by Lipper
U.S. Government Bond Index/1/ was up just 5.44% over the last year. The
duration of the fund continues to resemble that of its benchmark, the Merrill
Lynch 3-7 Year Government Index. Credit quality remains strong by investing in
U.S. Government or government agency securities only. Our longer term outlook
is for continued low inflation. Under this scenario, we believe prospects are
good for achieving solid real (inflation adjusted) returns for shareholders.
Value Equity Fund
We are pleased with the performance of the fund over the last six months. Our
six month return of 27.91% (without load) slightly exceeded the return by the
Standard and Poor's 500 of 27.34%. The yearly return as of March 31, 1999, was
13.40%, (without load) its performance was held back by the late summer
correction in common stocks.
Investors continue to respond positively to the current environment of solid
economic growth, low and falling inflation rates, moderate earnings growth and
generally low interest rates. After fairly flat earnings for most of 1998,
earnings appear to have risen by approximately 8% during the first quarter of
1999. This earnings acceleration may help to broaden out the stock market's
advance. Looking forward, we see an environment of moderating economic growth
combined with low inflation and stable interest rates.
[GRAPH APPEARS HERE]
Value Equity Fund
Value of a $10,000 Investment
Equity Fund Equity Fund S&P 500 Index
load no load
8/9/94 10000 10000 9550
3/31/95 10435 10925 11142
3/31/96 13162 13781 14713
3/31/97 15457 16184 17623
3/31/98 21269 22269 26099
3/31/99 24119 25252 30917
Since
Date 1 Year Inception
(08/09/94)
03/31/99 8.31%* 20.89%*
* Reflects a 4.50% Sales Charge.
Past performance is not predictive of future results.
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. The index is unmanaged and cannot be invested in
directly. Investment return and net asset value will fluctuate so an investors
shares when redeemed, may be worth more or less than the original cost.
/1/The Lipper Intermediate U.S. Government Bond Funds Index consists of the
equally weighted average monthly return of the largest funds within the
universe of all funds in the category.
- -------------------------------------------------------------------------------
2
<PAGE>
Message From The Investment Adviser Brenton Mutual Funds
- -------------------------------------------------------------------------------
We continue to focus new purchases on companies positioned for consistent
growth. Over the last six months we have purchased a number of such securities
including Crown Cork and Seal (0.5%), U.S. Bancorp (0.6%), Abbott Laboratories
(0.7%) and Time Warner (0.7%). On a longer term basis, we continue to stress
themes related to demographics, in particular the aging of the baby boom
generation. We are confident that these trends will continue to benefit
financial stocks as well as healthcare related firms.
U.S. Government Money Market Fund/1/
This fund continued to produce solid returns over the last year with a total
return of 4.58%, with a since inception return of 4.78%. The seven-day yield
of the Fund was 3.80% as of March 31, 1999. The Federal Reserve reduced the
Federal Funds rate in the fall of 1998 by a total of 3/4 of 1%. These
reductions were felt over the last half of the year as rates fell and fund
yields drifted lower. As always, we continue to focus fund investments in U.S.
government agency obligations of high credit quality. At this time we
anticipate that the Federal Reserve will hold the Federal Funds rate steady
over the next few months. That being the case, we expect to maintain the
average maturity near current levels.
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/ Douglas L. Brown
Douglas L. Brown
Vice President/Senior Portfolio Manager
Brenton Investments, Inc.
For more complete information on any of the Brenton Mutual Funds, including
fees, expenses and sales charges, please call 1-800-706-FUND for a free
prospectus. Please read the prospectus carefully before investing or sending
money.
The investment return and Net Asset Value (NAV) will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. The composition of the funds' holdings is subject to change.
/1/An investment in the Fund is 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. The seven-day yield quotation more closely reflects the current
earnings of the Fund than the total return quotation.
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
Report of Independent Auditors
Page 5
Statements of Assets and Liabilities
Page 6
Statements of Operations
Page 7
Statements of Changes in Net Assets
Page 8
Schedules of Portfolio Investments
Page 10
Notes to Financial Statements
Page 15
Financial Highlights
Page 20
4
<PAGE>
Report of Independent Auditors Brenton Mutual Funds
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of Brenton Mutual Funds of The
Coventry Group
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Brenton Mutual Funds (comprising,
respectively, Brenton U.S. Government Money Market Fund, Brenton Intermediate
U.S. Government Securities Fund, and Brenton Value Equity Fund) as of March 31,
1999, and the related statements of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of March 31, 1999, by correspondence with the custodian and
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting Brenton Mutual Funds as of March 31,
1999, the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and their
financial highlights for each of the indicated periods, in conformity with
generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Columbus, Ohio
April 28, 1999
- --------------------------------------------------------------------------------
5
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Assets and Liabilities
March 31, 1999
<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
$48,528,819; $28,014,236;
$40,216,494, respectively)........ $48,528,819 $28,538,874 $61,959,691
Interest and dividends receivable.. 136,229 445,894 75,757
Prepaid expenses and other assets.. 2,940 365 1,435
----------- ----------- -----------
Total Assets................... 48,667,988 28,985,133 62,036,883
----------- ----------- -----------
LIABILITIES:
Dividends payable.................. 167,563 120,543 57,464
Accrued expenses and other
payables:
Investment advisory fees......... 13,250 11,572 34,497
Administration fees.............. 999 394 1,701
Distribution and shareholder
service fees.................... 2,531 488 2,627
Other fees....................... 16,715 13,112 23,159
----------- ----------- -----------
Total Liabilities.............. 201,058 146,109 119,448
----------- ----------- -----------
Total Net Assets............... $48,466,930 $28,839,024 $61,917,435
=========== =========== ===========
NET ASSETS:
Capital............................ $48,467,288 $28,281,165 $36,990,146
Undistributed (distribution in
excess of) net investment
income/(loss)..................... -- 21,741 4,680
Net unrealized
appreciation/(depreciation) from
investments....................... -- 524,638 21,743,197
Accumulated undistributed net
realized gains/(losses) from
investment transactions........... (358) 11,480 3,179,412
----------- ----------- -----------
Net Assets..................... $48,466,930 $28,839,024 $61,917,435
=========== =========== ===========
Single Class or Class M Shares
Net Assets......................... $38,397,421 28,839,024 61,917,435
Outstanding units of beneficial
interest (shares)................. 38,397,465 2,802,832 3,143,358
----------- ----------- -----------
Net asset value--redemption price
per share......................... $ 1.00 $ 10.29 $ 19.70
=========== =========== ===========
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) $ 10.66 $ 20.63
=========== =========== ===========
Class S Shares
Net Assets......................... $10,069,509
Outstanding units of beneficial
interest (shares)................. 10,069,509
===========
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.
6
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Operations
For the Year Ended March 31, 1999
<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..................... $2,349,324 $1,711,126 $ --
Dividend income..................... 453 33,984 896,251
---------- ---------- ----------
Total income...................... 2,349,777 1,745,110 896,251
---------- ---------- ----------
EXPENSES:
Investment advisory fees............ 179,091 135,607 379,526
Administration fees................. 89,542 57,070 114,842
Distribution and shareholder service
fees--Single Class or Class M...... 196,171 142,675 287,103
Distribution and shareholder service
fees--Class S...................... 41,493 -- --
Custodian fees...................... 15,048 5,543 14,010
Fund accounting fees................ 37,235 32,816 34,333
Transfer agent fees................. 75,709 25,658 67,134
Other............................... 49,491 25,506 50,129
---------- ---------- ----------
Total Expenses.................... 683,780 424,875 947,077
Less: Fee waivers and expense
reimbursements..................... (304,733) (165,502) (258,394)
---------- ---------- ----------
Net expenses...................... 379,047 259,373 688,683
---------- ---------- ----------
Net Investment Income............... 1,970,730 1,485,737 207,568
---------- ---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains/(losses) from
investment transactions............ -- 21,610 7,138,635
Net change in unrealized
appreciation/(depreciation) from
investments........................ -- 130,863 (29,860)
---------- ---------- ----------
Net realized gains/(losses) from
investments......................... -- 152,473 7,108,775
---------- ---------- ----------
Change in net assets resulting from
operations......................... $1,970,730 $1,638,210 $7,316,343
========== ========== ==========
</TABLE>
See notes to financial statements.
7
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
-----------------------------
Year Ended Year Ended
March 31, March 31,
1999 1998
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income........................... $ 1,970,730 $ 1,747,740
Net realized gains/(losses) from investment
transactions................................... -- 8
Net change in unrealized
appreciation/(depreciation) from investments... -- --
------------ ------------
Change in net assets resulting from operations... 1,970,730 1,747,748
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class M........................................ (1,754,516) (1,747,740)
Class S........................................ (216,840)(a) --
------------ ------------
Change in net assets from shareholder
distributions................................... (1,971,356) (1,747,740)
------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued
Class M........................................ 82,586,499 105,475,648
Class S........................................ 25,295,714(a) --
Dividends reinvested
Class M........................................ 379,814 280,061
Class S........................................ 185,513(a) --
Cost of shares redeemed
Class M........................................ (86,628,864) (98,490,752)
Class S........................................ (15,411,718)(a) --
------------ ------------
Change in net assets from capital share
transactions.................................... 6,406,958 7,264,957
------------ ------------
Change in net assets............................. 6,406,332 7,264,965
NET ASSETS:
Beginning of period............................. 42,060,598 34,795,633
------------ ------------
End of period................................... $ 48,466,930 $ 42,060,598
============ ============
Accumulated undistributed net investment income
included in net assets, end of period........... $ -- $ 626
------------ ------------
SHARE TRANSACTIONS:
Issued
Class M........................................ 82,586,499 105,475,630
Class S........................................ 25,295,714(a) --
Reinvested
Class M........................................ 379,814 280,061
Class S........................................ 185,513(a) --
Redeemed
Class M........................................ (86,628,864) (98,491,075)
Class S........................................ (15,411,718)(a) --
------------ ------------
Change in shares................................. 6,406,958 7,264,616
============ ============
</TABLE>
(a) For the period from October 8, 1998 (commencement of operations) to March
31, 1999.
See notes to financial statements.
8
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Intermediate U.S. Government Value Equity
Securities Fund Fund
----------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
March 31, March 31, March 31, March 31,
1999 1998 1999 1998
-------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 1,485,737 $ 1,944,467 $ 207,568 $ 297,779
Net realized
gains/(losses) from
investment
transactions.......... 21,610 295,619 7,138,635 4,467,710
Net change in
unrealized
appreciation/
(depreciation) from
investments........... 130,863 1,228,528 (29,860) 11,585,146
------------- -------------- ------------ ------------
Change in net assets
resulting from
operations............. 1,638,210 3,468,614 7,316,343 16,350,635
------------- -------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (1,484,965) (1,961,357) (199,509) (291,610)
In excess of net
investment income..... -- (19,724) -- (3,379)
Dividends to
shareholders from net
realized gains from
investment
transactions.......... (203,382) (54,748) (6,896,958) (1,209,608)
------------- -------------- ------------ ------------
Change in net assets
from shareholder
distributions.......... (1,688,347) (2,035,829) (7,096,467) (1,504,597)
------------- -------------- ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 9,151,758 7,155,148 11,132,692 12,077,719
Dividends reinvested... 800,027 550,903 5,378,568 1,079,209
Cost of shares
redeemed.............. (7,395,056) (16,964,161) (11,761,484) (12,781,841)
------------- -------------- ------------ ------------
Change in net assets
from capital share
transactions........... 2,556,729 (9,258,110) 4,749,776 375,087
------------- -------------- ------------ ------------
Change in net assets.... 2,506,592 (7,825,325) 4,969,652 15,221,125
NET ASSETS:
Beginning of period.... 26,332,432 34,157,757 56,947,783 41,726,658
------------- -------------- ------------ ------------
End of period.......... $ 28,839,024 $ 26,332,432 $ 61,917,435 $ 56,947,783
============= ============== ============ ============
Accumulated
undistributed
(distribution in
excess of) net
investment income
included in net assets,
end of period.......... $ 21,741 $ 21,102 $ 4,680 $ (3,379)
------------- -------------- ------------ ------------
SHARE TRANSACTIONS:
Issued................. 881,371 700,180 578,439 692,334
Reinvested............. 76,812 54,220 300,904 60,284
Redeemed............... (710,997) (1,643,959) (611,295) (697,579)
------------- -------------- ------------ ------------
Change in shares........ 247,186 (889,559) 268,048 55,039
============= ============== ============ ============
</TABLE>
See notes to financial statements.
9
<PAGE>
THE COVENTRY GROUP
BRENTON U.S. GOVERNMENT MONEY MARKET FUND
Schedule of Portfolio Investments
March 31, 1999
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
----------- ----------------------------------------------------- ------------
<C> <S> <C>
U.S. Government Agencies (100.1%):
Federal Home Loan Bank (100.1%):
$ 354,000 4.80%*, 4/1/99....................................... $ 354,000
15,000,000 4.81%*, 4/5/99....................................... 14,992,017
400,000 5.63%, 4/9/99........................................ 399,993
630,000 4.80%*, 4/23/99...................................... 628,167
4,000,000 4.76%*, 4/28/99...................................... 3,985,900
1,000,000 4.75%*, 4/30/99...................................... 996,214
4,400,000 5.51%, 4/30/99....................................... 4,401,507
2,000,000 4.80%*, 5/5/99....................................... 1,991,009
3,700,000 4.94%*, 5/12/99...................................... 3,679,689
6,500,000 4.80%*, 5/14/99...................................... 6,463,122
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
----------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies, continued:
Federal Home Loan Bank, continued:
$ 2,000,000 4.80%*, 5/21/99...................................... $ 1,986,819
850,000 4.89%*, 5/28/99...................................... 843,567
2,000,000 4.93%*, 6/2/99....................................... 1,983,425
500,000 4.89%*, 6/4/99....................................... 495,760
1,370,000 5.53%, 6/10/99....................................... 1,369,584
3,000,000 4.79%*, 6/16/99...................................... 2,969,980
1,000,000 4.78%*, 7/2/99....................................... 988,066
-----------
Total U.S. Government Agencies 48,528,819
-----------
Total (Amortized Cost $48,528,819)(a) $48,528,819
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $48,466,930.
*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.
10
<PAGE>
THE COVENTRY GROUP
BRENTON INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
Schedule of Portfolio Investments
March 31, 1999
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies (87.2%):
Fannie Mae (26.0%):
2,700,000 5.75%, 6/15/05......................................... $ 2,722,114
1,500,000 6.74%, 7/9/07.......................................... 1,579,965
502,034 6.50%, 3/1/09.......................................... 508,937
1,601,146 7.50%, 11/1/17......................................... 1,656,177
1,001,350 7.50%, 12/1/25......................................... 1,032,011
-----------
7,499,204
-----------
Federal Home Loan Bank (48.3%):
2,000,000 6.50%, 6/5/02.......................................... 2,066,780
3,000,000 5.69%, 4/15/03......................................... 3,017,610
1,500,000 5.13%, 9/15/03......................................... 1,476,825
1,000,000 6.89%, 4/6/04.......................................... 1,055,700
1,000,000 7.36%, 7/1/04.......................................... 1,078,980
1,000,000 7.32%, 4/21/05......................................... 1,084,340
3,000,000 6.32%, 6/28/05......................................... 3,103,380
1,000,000 6.15%, 11/28/05........................................ 1,027,330
-----------
13,910,945
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies, continued:
Freddie Mac (11.7%):
1,500,000 6.55%, 10/2/02......................................... $ 1,557,285
1,000,000 6.75%, 8/1/05.......................................... 1,057,780
757,597 6.50%, 7/1/08.......................................... 768,249
-----------
3,383,314
-----------
Ginnie Mae (1.2%):
341,143 7.00%, 5/1/10.......................................... 349,030
-----------
Total U.S. Government Agencies 25,142,493
-----------
U.S. Treasury Notes (10.6%):
1,000,000 6.38%, 1/15/00......................................... 1,011,270
2,000,000 5.88%, 9/30/02......................................... 2,044,580
-----------
Total U.S. Treasury Notes 3,055,850
-----------
Investment Companies (1.2%):
340,531 Goldman Federal Money Market Portfolio................. 340,531
-----------
Total Investment Companies 340,531
-----------
Total (Cost $28,014,236)(a) $28,538,874
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $28,839,024.
(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..... $584,820
Unrealized depreciation..... (60,182)
--------
Net unrealized appreciation. $524,638
========
</TABLE>
See notes to financial statements.
11
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments
March 31, 1999
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (96.0%):
Aerospace/Defense (0.9%):
11,000 General Motors Corp.--Class H (b)...................... $ 554,813
-----------
Banks (7.5%):
14,850 Bank One Corp.......................................... 817,678
15,276 BankAmerica Corp....................................... 1,078,867
10,000 Chase Manhattan Corp................................... 813,125
6,000 First Union Corp....................................... 320,625
10,000 U.S. Bancorp........................................... 340,625
35,000 Wells Fargo Co......................................... 1,227,187
-----------
4,598,107
-----------
Beverages--Non-alcoholic (2.0%):
9,200 Coca-Cola Co........................................... 564,650
16,700 PepsiCo, Inc........................................... 654,431
-----------
1,219,081
-----------
Beverages--Wines & Spirits (1.2%):
10,000 Anheuser-Busch Cos., Inc............................... 761,875
-----------
Capital Equipment (1.6%):
16,000 Illinois Tool Works, Inc............................... 990,000
-----------
Chemicals--Diversified (0.8%):
8,600 Du Pont (E.I.) de Nemours & Co......................... 499,338
-----------
Chemicals--Speciality (0.5%):
11,000 Sigma-Aldrich Corp..................................... 321,750
-----------
Computer Software (5.9%):
7,050 Cisco Systems, Inc. (b)................................ 772,415
8,000 Dell Computer Corp. (b)................................ 327,000
7,000 Electronic Data Systems Corp........................... 340,813
6,500 Hewlett-Packard Co..................................... 440,781
20,000 Microsoft Corp. (b).................................... 1,792,499
-----------
3,673,508
-----------
Computers (2.2%):
5,000 EMC Corp. (b).......................................... 638,750
4,000 International Business Machines Corp................... 709,000
-----------
1,347,750
-----------
Computers--Peripheral Equipment (0.5%):
10,000 Compaq Computer Corp................................... 316,875
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks, continued:
Containers & Packaging (0.5%):
10,000 Crown Cork & Seal Co., Inc.............................. $ 285,625
----------
Cosmetics/Personal Care (0.8%):
8,000 Gillette Co............................................. 475,500
----------
Defense (0.9%):
10,000 Raytheon Co.--Class A................................... 577,500
----------
Diversified Operations (4.6%):
20,500 General Electric Co..................................... 2,267,812
8,100 Minnesota Mining & Manufacturing Co..................... 573,075
----------
2,840,887
----------
Electric Utility (0.5%):
9,000 BEC Energy.............................................. 330,750
----------
Electrical Equipment (1.9%):
15,700 AMP, Inc................................................ 842,894
6,000 Emerson Electric Co..................................... 317,625
----------
1,160,519
----------
Electronic Components (1.8%):
5,000 Intel Corp.............................................. 595,625
7,000 Motorola, Inc........................................... 512,750
----------
1,108,375
----------
Electronic Components--Semiconductors (1.0%):
15,000 Xilinx, Inc. (b)........................................ 608,438
----------
Energy (0.5%):
11,000 Reliant Energy, Inc..................................... 286,688
----------
Financial Services (5.4%):
10,000 Citigroup, Inc.......................................... 638,750
15,000 Federal Home Loan Mortgage Corp......................... 856,874
17,800 MGIC Investment Corp.................................... 624,113
8,000 Morgan Stanley Dean Witter & Co......................... 799,500
10,000 Washington Mutual Inc................................... 408,750
----------
3,327,987
----------
Food Products & Services (2.6%):
31,200 ConAgra, Inc............................................ 797,550
32,600 Sara Lee Corp........................................... 806,850
----------
1,604,400
----------
</TABLE>
Continued
12
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments, Continued
March 31, 1999
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Health Care--Drugs (4.8%):
10,000 American Home Products Corp............................ $ 652,500
24,000 Bristol Myers Squibb Co................................ 1,543,499
10,000 Merck & Co., Inc....................................... 801,875
-----------
2,997,874
-----------
Health Care--General Products (2.3%):
15,100 Johnson & Johnson...................................... 1,414,681
-----------
Household--General Products (2.2%):
10,000 Newell Rubbermaid Inc.................................. 475,000
9,000 Procter & Gamble Co.................................... 881,438
-----------
1,356,438
-----------
Insurance (5.0%):
6,000 American International Group, Inc...................... 723,750
16,000 Reliastar Financial Corp............................... 682,000
19,300 Safeco Corp............................................ 780,444
19,200 UNUM Corp.............................................. 913,199
-----------
3,099,393
-----------
Leisure & Recreation (0.5%):
15,000 Brunswick Corp......................................... 285,938
-----------
Medical--Wholesale Drug Distribution (2.1%):
7,000 Lilly (Eli) & Co....................................... 594,125
5,000 Pfizer, Inc............................................ 693,750
-----------
1,287,875
-----------
Medical--Hospital Management & Services (0.6%):
20,000 Tenet Healthcare Corp. (b)............................. 378,750
-----------
Motor Vehicles (1.0%):
7,000 General Motors Corp.................................... 608,125
-----------
Multimedia (1.3%):
12,000 The Walt Disney Co..................................... 373,500
6,000 Time Warner Inc........................................ 426,375
-----------
799,875
-----------
Natural Gas Utility (0.6%):
15,000 Baker Hughes, Inc...................................... 364,688
-----------
Office Supplies, Automation & Equipment (2.6%):
8,000 Avery Dennison......................................... 460,000
18,000 Pitney Bowes, Inc...................................... 1,147,500
-----------
1,607,500
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Oil & Gas (2.1%):
20,000 Burlington Resources, Inc.............................. $ 798,750
10,000 Royal Dutch Petroleum Co............................... 520,000
-----------
1,318,750
-----------
Oil Companies--Integrated (3.5%):
7,675 BP Amoco Co., PLC...................................... 774,695
12,800 Exxon Corp............................................. 903,200
5,500 Mobil Corp............................................. 484,000
-----------
2,161,895
-----------
Oil Field Services (1.6%):
16,000 Schlumberger Ltd....................................... 963,000
-----------
Paint & Related Products (0.7%):
15,000 Sherwin-Williams Co.................................... 421,875
-----------
Paper & Related Products (2.0%):
13,000 Kimberly-Clark Corp.................................... 623,188
10,000 Lowe's Cos., Inc....................................... 605,000
-----------
1,228,188
-----------
Pharmaceuticals (2.0%):
9,000 Abbott Laboratories.................................... 421,313
9,000 Schering-Plough Corp................................... 497,812
5,000 Warner Lambert Co...................................... 330,938
-----------
1,250,063
-----------
Restaurants (0.7%):
10,000 McDonald's Corp........................................ 453,125
-----------
Retail--Discount (1.6%):
11,000 Costco Cos., Inc. (b).................................. 1,007,188
-----------
Retail--Convenience Stores (0.8%):
35,000 Casey's General Stores, Inc............................ 516,250
-----------
Retail--General Merchandise (1.5%):
10,000 Wal Mart Stores, Inc................................... 921,875
-----------
Retail--Specialty Stores (1.1%):
11,000 Home Depot, Inc........................................ 684,750
-----------
Steel (0.4%):
6,000 Nucor Corp............................................. 264,375
-----------
Telecommunications (2.6%):
18,000 MCI Worldcom, Inc. (b)................................. 1,594,125
-----------
</TABLE>
Continued
13
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments, Continued
March 31, 1999
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Telecommunications Equipment (1.1%):
6,500 Lucent Technologies, Inc............................... $ 700,375
-----------
Tobacco (0.7%):
12,000 Philip Morris Cos., Inc................................ 422,250
-----------
Utilities--Electric (0.9%):
15,000 AES Corp. (b).......................................... 558,750
-----------
Utilities--Gas & Pipeline (0.7%):
15,300 Sonat, Inc............................................. 459,000
-----------
Utilities--Telephone (4.2%):
10,000 AT&T Corp.............................................. 798,125
14,800 GTE Corp............................................... 895,400
19,800 SBC Communications, Inc................................ 933,075
-----------
2,626,600
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Wholesale (1.2%):
16,000 Arrow Electronics, Inc. (b)............................ $ 240,000
20,000 Sysco Corp............................................. 526,250
-----------
766,250
-----------
Total Common Stocks 59,409,587
-----------
Investment Companies (4.1%):
2,550,104 Goldman Federal Money Market Portfolio................. 2,550,104
-----------
Total Investment Companies 2,550,104
-----------
Total (Cost $40,216,494)(a) $61,959,691
===========
</TABLE>
- ------
Percentages indicated are based on net assets of $61,917,435.
(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... $22,800,136
Unrealized depreciation... (1,056,939)
-----------
Net unrealized
appreciation.............. $21,743,197
===========
</TABLE>
(b) Represents non-income producing securities.
PLC--Public Limited Company
See notes to financial statements.
14
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements
March 31, 1999
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.
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.
Continued
15
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
March 31, 1999
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.
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 March 31, 1999, the U.S.
Government Money Market Fund had capital loss carryforwards which are
available to offset future capital gains, if any:
Continued
16
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
March 31, 1999
<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>
As of March 31, 1999, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments, if any,
made to paid-in-capital:
<TABLE>
<CAPTION>
Accumulated Accumulated Net
Undistributed Net Realized
Investment Gain/(Loss)
Income On Investments
----------------- ---------------
<S> <C> <C>
Intermediate U.S. Government Securities
Fund................................... $(133) $133
</TABLE>
Expenses:
Expenses that are directly related to one of the Funds or class of shares
are charged directly to that Fund or class of shares. 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
year ended March 31, 1999 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Intermediate U.S. Government Securities Fund......... $ 7,617,657 $ 4,736,236
Value Equity Fund.................................... 13,595,753 17,656,159
</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
17
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
March 31, 1999
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 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 0.04% of
the average daily net assets, with a minimum annual fee of $40,000 for the
U.S. Government Money Market Fund, 0.03% of the average daily net assets,
with a minimum annual fee of $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 Funds are affiliated with BISYS.
Compensation paid from the Fund to trustees not affiliated with BISYS during
the period ended March 31, 1999 was $8,852 for U.S. Government Money Market
Fund, $6,112 for Intermediate U.S. Government Securities Fund and $10,754
for the Value Equity Fund, respectively. 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
18
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
March 31, 1999
BISYS is also entitled to receive commissions on sales of shares of the
Funds. For the year ended March 31, 1999, BISYS received $16,553 from
commissions earned on sales of shares of the Fund, of which none 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 year ended March 31, 1999:
<TABLE>
<CAPTION>
U.S. Government Intermediate Value
Money Market U.S. Government 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........... $ 44,772 -- --
Administration Fees:
Annual fee before voluntary fee
reductions (percentage of average
net assets)....................... 0.20% 0.20% 0.20%
Voluntary fee reductions........... $ 22,390 $ 28,534 --
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........... $190,348 $136,968 $258,394
12b-1 Fees--Class S
Annual fee before voluntary fee
reductions (percentage of average
net assets) 0.75% -- --
Voluntary fee reductions........... $ 27,662 -- --
</TABLE>
During the fiscal year ended March 31, 1999, Brenton Bank reimbursed $19,561
of expenses incurred by the U.S. Government Money Market Fund.
5. Federal Income Tax Information: (unaudited)
During the fiscal year ended March 31, 1999 the following Funds declared
long-term capital gain distributions as follows:
<TABLE>
<CAPTION>
Long-Term
20%
----------
<S> <C>
Intermediate U.S. Government Securities Fund...................... $ 89,455
Value Equity Fund................................................. 6,422,605
</TABLE>
For corporate shareholders of the Value Equity Fund, 82.78% of the total
ordinary income distributions paid during the fiscal year ended March 31,
1999 qualify for the corporate dividends received deduction.
Capital losses incurred by the Intermediate U.S. Government Securities Fund
after October 31, within the Fund's fiscal year are deemed to arise on the
first business day of the following fiscal year for tax purposes. The Fund
incurred and will elect to defer such capital losses of $260.
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>
U.S. Government
Money Market Fund
-------------------------------------------------
Class M
-------------------------------------------------
Year Year Year Year August 9,
Ended Ended Ended Ended 1994 to
March 31, March 31, March 31, March 31, March 31,
1999 1998 1997 1996 1995 (a)
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Investment Activities
Net investment income... 0.045 0.048 0.046 0.050 0.028
------- ------- ------- ------- -------
Total from Investment
Activities........... 0.045 0.048 0.046 0.050 0.028
------- ------- ------- ------- -------
Distributions
Net investment income... (0.045) (0.048) (0.046) (0.050) (0.028)
------- ------- ------- ------- -------
Total Distributions... (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
======= ======= ======= ======= =======
Total return (excludes
sales charge)........ 4.58% 4.96% 4.67% 5.12% 2.84%(b)
Ratios/Supplementary Data:
Net Assets, End of
Period (000)........... $38,397 $42,061 $34,796 $35,436 $27,810
Ratio of expenses to
average net assets..... 0.81% 0.72% 0.77% 0.75% 0.97%(c)
Ratio of net investment
income to
average net assets..... 4.47% 4.86% 4.57% 4.99% 4.37%(c)
Ratio of expenses to
average net assets (*). 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.
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>
U.S. Government
Money Market Fund
-----------------
Class S
-----------------
October 8
1998 to
March 31,
1999 (a)
-----------------
<S> <C>
Net Asset Value, Beginning of Period.......................... $ 1.000
-------
Investment Activities
Net investment income....................................... 0.020
-------
Total from Investment Activities............................ 0.020
-------
Distributions
Net investment income....................................... (0.020)
-------
Total Distributions....................................... (0.020)
-------
Net Asset Value, End of Period................................ $ 1.000
=======
Total return (excludes sales charge)...................... 1.89(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)............................. $10,070
Ratio of expenses to average net assets..................... 1.11%(c)
Ratio of net investment income to average net assets........ 3.94%(c)
Ratio of expenses to average net assets (*)................. 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.
21
<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
-------------------------------------------------
Year Year Year Year August 9,
Ended Ended Ended Ended 1994 to
March 31, March 31, March 31, March 31, March 31,
1999 1998 1997 1996 1995 (a)
--------- --------- --------- --------- ---------
<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... 0.54 0.59 0.57 0.59 0.35
Net realized and
unrealized
gains/(losses)
from investments....... 0.06 0.40 (0.22) 0.15 (0.02)
------- ------- ------- ------- -------
Total from Investment
Activities........... 0.60 0.99 0.35 0.74 0.33
------- ------- ------- ------- -------
Distributions
Net investment income... (0.54) (0.58) (0.57) (0.59) (0.34)
Net realized gains from
investments............ (0.07) (0.02) (0.01) -- --
------- ------- ------- ------- -------
Total Distributions... (0.61) (0.60) (0.58) (0.59) (0.34)
------- ------- ------- ------- -------
Net Asset Value, End of
Period.................... $ 10.29 $ 10.30 $ 9.91 $ 10.14 $ 9.99
======= ======= ======= ======= =======
Total return (excludes
sales charge)........ 6.00% 10.21% 3.51% 7.48% 3.42%(b)
Ratios/Supplementary Data:
Net Assets, End of
Period (000)........... $28,839 $26,332 $34,158 $34,390 $16,438
Ratio of expenses to
average net assets..... 0.91% 0.97% 1.02% 1.07% 1.53%(c)
Ratio of net investment
income to
average net assets..... 5.21% 5.47% 5.64% 5.82% 5.71%(c)
Ratio of expenses to
average net assets (*). 1.49% 1.42% 1.47% 1.55% 2.03%(c)
Portfolio Turnover...... 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.
22
<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
-------------------------------------------------
Year Year Year Year August 9,
Ended Ended Ended Ended 1994 to
March 31, March 31, March 31, March 31, March 31,
1999 1998 1997 1996 1995 (a)
--------- --------- --------- --------- ---------
<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... 0.07 0.10 0.13 0.10 0.09
Net realized and
unrealized
gains/(losses) from
investments............ 2.32 5.41 2.11 2.70 0.83
------- ------- ------- ------- -------
Total from Investment
Activities........... 2.39 5.51 2.24 2.80 0.92
------- ------- ------- ------- -------
Distributions
Net investment income... (0.07) (0.10) (0.13) (0.10) (0.09)
Net realized gains from
investments............ (2.43) (0.40) (0.19) (0.58) --
In excess of net
realized gains from
investments............ -- -- (0.07) -- --
------- ------- ------- ------- -------
Total Distributions... (2.50) (0.50) (0.39) (0.68) (0.09)
------- ------- ------- ------- -------
Net Asset Value, End of
Period.................... $ 19.70 $ 19.81 $ 14.80 $ 12.95 $ 10.83
======= ======= ======= ======= =======
Total return (excludes
sales charges)....... 13.40% 37.59% 17.44% 26.13% 9.25%(b)
Ratios/Supplementary Data:
Net Assets, End of
Period (000)........... $61,917 $56,948 $41,727 $32,353 $15,628
Ratio of expenses to
average net assets..... 1.20% 1.20% 1.28% 1.45% 1.80%(c)
Ratio of net investment
income to average net
assets................. 0.36% 0.57% 0.88% 0.83% 1.39%(c)
Ratio of expenses to
average net
assets (*)............. 1.65% 1.65% 1.73% 1.92% 2.30%(c)
Portfolio Turnover...... 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.
23
<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
5/99
LOGO
BRENTON
MUTUAL FUNDS
LOGO
BRENTON BANK
INVESTMENT ADVISER
ANNUAL REPORT
TO
SHAREHOLDERS
March 31, 1999
