<PAGE> 1
WILLAMETTE LOGO
The Willamette Value
Fund seeks to provide
investors with
above-average total
return through a
combination of capital
appreciation and
dividend
income. In pursuit of
this
objective the investment
adviser focuses on
purchasing
equity securities
believed to
be fundamentally sound
that have a record of
paying historically high
dividends and are priced
low relative to their
earnings
or comparable
securities.
SHAREHOLDER ANNUAL REPORT
AS OF MARCH 31, 1999
LETTER FROM THE ADVISER
Dear Valued Shareholders:
In keeping with our goal to provide long-term
investment services, we believe it is important to keep
our shareholders informed regarding a number of
achievements during the Willamette Value Fund's (WILVX)
first year of operation.
Since its successful launch on May 26, 1998, the Fund
has received wide acceptance among investors. In line
with projections, the net assets of the Fund grew
substantially. As of March 31, 1999, total net assets
of the Fund were just under $15 million. This is
important because the estimated expense ratios stated
in the prospectus are based upon a first year, average
asset base of $10 million. As total assets under
management continue to increase, the average expense
ratio should decline accordingly.
During its first fiscal year, the ten-month period
beginning May 26, 1998 to March 31, 1999, the WILVX and
the equity markets as a whole experienced a tremendous
amount of volatility. However, through it all, stocks
managed to end the fiscal year in positive territory.
For the fiscal period beginning May 26, 1998 through
March 31, 1999, the Dow Jones Composite Index (COMP)
finished up 7.03%, the WILVX rose 1.11%. The Fund's
performance, which trailed the COMP, was primarily due
to weak oil prices during the first three-quarters.
From March 31, 1998, through December 31, 1998, U.S.
crude oil spot prices declined 23% to $12.09 per
barrel. With approximately 19% of the Fund's assets
being allocated to the oil sector, the drop in oil
prices had an adverse effect on the Fund. However,
increases in many commodity prices, particularly oil
which jumped 38% during the fiscal fourth quarter, bode
well for a quick recovery in this sector.
<PAGE> 2
Looking forward, we expect fiscal fourth quarter U.S. corporate earnings to
come in at 5% to 8% above last year's numbers, which would be the strongest
since the Asian crisis began. With improvements abroad, domestic inflation in
check and a strong U.S. economy, we believe this number should accelerate to an
average rate of 10% to 12% per year between 1999 and 2002. Furthermore, the drop
in commodity prices also appears to be slowing. Crude oil prices came up
drastically in the fiscal fourth quarter and both the Paper and Steel industries
appear to be improving. Long-term, we believe these factors to be promising
given the fact that these trends to favor the value investor.
We thank you for your continued support of the Willamette Value Fund.
Sincerely,
/s/ James T. Smith
James T. Smith
Portfolio Manager
Willamette Value Fund
For more complete information on the Willamette Value Fund, including fees,
expenses and sales charges, please call 1-877-945-3863 for a free prospectus.
Please read the prospectus carefully before investing or sending money.
The views expressed in this report reflect those of the investment adviser only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate so than an investor's shares, when redeemed may be
worth more or less than the original cost.
Shares of the Fund are NOT FDIC INSURED.
The Willamette Value Fund is distributed by BISYS Fund Services. Willamette
Asset Managers serve as Adviser to the Fund and receives a fee for its services.
<PAGE> 3
WILLAMETTE VALUE FUND
HIGHLIGHTS AS OF 3/31/99
TOP 10 HOLDINGS(1)
<TABLE>
<S> <C> <C>
1. General Motors Corporation 5.75%
2. J.P. Morgan 5.04%
3. Chevron Corporation 4.86%
4. AT&T Corporation 4.47%
5. Minn. Mining & MFG Co. 4.01%
6. Exxon Corporation 3.90%
7. Alcoa Inc. 3.85%
8. Eastman Kodak Company 3.78%
9. Philip Morris Inc. 3.69%
10. International Paper Co. 3.44%
</TABLE>
SECTOR DIVERSIFICATION(1)
<TABLE>
<CAPTION>
<S> <C>
Chemicals 2.2%
Retail 2.8%
Tobacco 3.7%
Metals 3.8%
Diversified Manufacturing 5.5%
Electronics 5.8%
Paper/Forestry 5.8%
Automotive 9.9%
Finance 11.1%
Telecom 15.8%
Oil 20.0%
Other 13.6%
</TABLE>
<TABLE>
<CAPTION>
WILLAMETTE VALUE FUND WILLAMETTE VALUE FUND NO
LOAD LOAD DOW JONES COMPOSITE
--------------------- ------------------------ -------------------
<S> <C> <C> <C>
5/26/98|Inception 10.000 10.000 10.000
6/30/98 9.312 9.750 10.204
9/30/98 8.739 9.150 8.946
12/31/98 9.541 9.990 10.279
3/31/99 9.657 10.111 10.723
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Last Quarter Since Inception
3/31/99 of Fiscal Year (05/26/98)
Without Sales Load 1.21% 1.11%
With Sales Load -3.34%* -3.43%*
</TABLE>
* Reflects a 4.50% Sales Charge
Past performance is not predictive of future results.
This hypothetical is for illustrative purposes only and is not representative of
any particular investment. Past performance is no guarantee of future results.
Performance figures reflect all fees, fee waivers, and expense reimbursements
and include reinvested dividends and capital gains paid. Without the absorption
of fee waivers and expense reimbursements, total return figures would have been
lower.
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)Portfolio holdings are as of 3/31/99 and are subject to change at any time.
(2)The Dow Jones Composite is an unmanaged stock index that represents U.S.
large blue chip company stocks. An investor may not invest directly in this
unmanaged stock index.
2
<PAGE> 4
TABLE OF CONTENTS
Statement of Assets and Liabilities
PAGE 4
Statement of Operations
PAGE 5
Statement of Changes in Net Assets
PAGE 6
Schedule of Portfolio Investments
PAGE 7
Notes to Financial Statements
PAGE 9
Financial Highlights
PAGE 12
Independent Auditor's Report
PAGE 13
3
<PAGE> 5
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
<TABLE>
<CAPTION>
VALUE
FUND
-----------
<S> <C>
ASSETS:
Investments, at value (cost $14,401,188).................... $14,943,937
Interest and dividends receivable........................... 43,292
Unamortized organizational costs............................ 27,534
Receivable for capital shares sold.......................... 11,287
Prepaid registration and filing............................. 5,622
-----------
Total assets........................................... 15,031,672
-----------
LIABILITIES:
Payable for capital shares redeemed......................... 51,261
Dividends payable........................................... 832
Accrued expenses and other payables:
Distribution and shareholder service fees................. 6,421
Investment advisory fees.................................. 500
Administration fees....................................... 416
Transfer agent and fund accounting fees payable........... 166
Other..................................................... 7,122
-----------
Total liabilities...................................... 66,718
-----------
Net assets............................................. $14,964,954
===========
NET ASSETS:
Capital..................................................... $14,415,275
Undistributed net investment income......................... 586
Net unrealized appreciation from investments................ 542,749
Accumulated undistributed net realized gains from investment
transactions.............................................. 6,344
-----------
Net assets............................................. $14,964,954
===========
Outstanding units of beneficial interest (shares)........... 1,480,551
===========
Net asset value -- redemption price per share............... $ 10.11
===========
Maximum Sales Charge........................................ 4.50%
===========
Maximum Offering Price per share (100%/(100%-Maximum Sales
Charge) of net asset value adjusted to nearest cent)...... $ 10.59
===========
</TABLE>
- ---------------
See notes to financial statements.
4
<PAGE> 6
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
STATEMENT OF OPERATIONS
PERIOD ENDED MARCH 31, 1999 (a)
<TABLE>
<CAPTION>
VALUE
FUND
--------
<S> <C>
INVESTMENT INCOME:
Dividend income........................................... $246,015
Interest income........................................... 18,148
--------
Total income........................................... 264,163
--------
EXPENSES:
Investment advisory fees.................................. 90,295
Transfer agent fees....................................... 64,865
Distribution and shareholder service fees................. 45,147
Fund accounting fees...................................... 31,400
Administration fees....................................... 18,059
Custodian fees............................................ 828
Other..................................................... 39,741
--------
Total expenses......................................... 290,335
Less: Fee waivers and expense reimbursements................ (27,590)
--------
Net expenses........................................... 262,745
--------
Net investment income....................................... 1,418
--------
REALIZED/UNREALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions............. 6,344
Net change in unrealized appreciation from investments...... 542,749
--------
Net realized/unrealized gains from investments.............. 549,093
--------
Change in net assets resulting from operations.............. $550,511
========
</TABLE>
- ---------------
(a) For the period from May 26, 1998 (commencement of operations) to March 31,
1999.
See notes to financial statements.
5
<PAGE> 7
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VALUE
FUND
------------------
PERIOD ENDED
MARCH 31, 1999 (a)
------------------
<S> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income..................................... $ 1,418
Net realized gains from investment transactions........... 6,344
Net change in unrealized appreciation from investments.... 542,749
-----------
Change in net assets resulting from operations.............. 550,511
-----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income................................ (832)
-----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued............................... 16,315,038
Cost of shares redeemed................................... (1,899,763)
-----------
Change in net assets from capital share transactions........ 14,415,275
-----------
Change in net assets...................................... 14,964,954
NET ASSETS:
Beginning of period....................................... --
-----------
End of period............................................. $14,964,954
===========
SHARE TRANSACTIONS:
Issued.................................................... 1,672,330
Reinvested................................................ --
Redeemed.................................................. (191,779)
-----------
Change in shares............................................ 1,480,551
===========
</TABLE>
- ---------------
(a) For the period from May 26, 1998 (commencement of operations) to March 31,
1999.
See notes to financial statements.
6
<PAGE> 8
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- -------------------------------- -----------
<C> <S> <C>
COMMON STOCKS (97.5%):
Airlines (1.4%):
2,978 British Airways PLC-ADR......... $ 204,365
-----------
Automotive (6.2%):
1,154 Ford Motor Co................... 65,490
9,897 General Motors Corp............. 859,801
-----------
925,291
-----------
Automotive Parts (3.7%):
808 Dana Corp....................... 30,704
8,983 Genuine Parts Co................ 258,823
5,659 Lucasvarity PLC-ADR............. 261,728
-----------
551,255
-----------
Banking & Financial Services (11.1%):
1,276 Bank One Corp................... 70,260
2,871 Bankers Trust Corp.............. 253,366
6,117 J.P. Morgan & Co................ 754,684
283 National Westminster Bank PLC... 38,789
5,714 PNC Financial Corp.............. 317,484
4,991 Union Planters Corp............. 219,292
-----------
1,653,875
-----------
Building Materials (0.3%):
856 Hanson PLC-ADR.................. 37,664
-----------
Chemicals (2.2%):
2,879 Du Pont (E.I.) de Nemours &
Co............................ 167,162
705 The Dow Chemical Co............. 65,697
2,052 Union Carbide Corp.............. 92,725
-----------
325,584
-----------
Cosmetics & Toiletries (1.6%):
6,358 International Flavors &
Fragrance..................... 238,822
-----------
Diversified Operation (5.5%):
8,488 Minnesota Mining & Manufacturing
Co............................ 600,526
8,211 Tenneco, Inc.................... 229,395
-----------
829,921
-----------
Electronic Components/Instruments (2.0%):
5,448 AMP, Inc........................ 292,490
-----------
Energy (1.5%):
1,059 PG&E Corp....................... 32,895
3,628 Florida Power & Light, Inc...... 193,191
-----------
226,086
-----------
Food Products & Services (1.9%):
3,815 General Mills, Inc.............. 288,271
-----------
Insurance (0.2%):
1,007 The St. Paul Companies, Inc..... 31,280
-----------
Machinery & Equipment (1.1%):
3,524 Caterpillar, Inc................ 161,884
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- -------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Metals (3.8%):
13,972 Alcoa Inc....................... $ 575,472
-----------
Office Supplies & Equipment (1.7%):
10,033 Equity Office Properties
Trust......................... 255,214
-----------
Oil -- Integrated Companies (20.0%):
1,031 Atlantic Richfield Co........... 75,263
3,395 BP Amoco Co. PLC-ADR............ 342,683
8,220 Chevron Corp.................... 726,956
8,270 Exxon Corp...................... 583,552
3,012 Mobil Corp...................... 265,056
788 Phillips Petroleum Co........... 37,233
5,804 Royal Dutch Petroleum Co., NY
Shares........................ 301,808
7,572 Shell Transport & Trading Co. --
ADR........................... 307,613
4,515 Texaco, Inc..................... 256,226
1,231 USX-Marathon Group 2,273 YPF
Sociedad...................... 33,853
2,273 YPF Sociedad Anonima -- ADR..... 71,742
-----------
3,001,985
-----------
Paper Products (5.8%):
12,186 International Paper Co.......... 514,097
6,256 Weyerhaeuser Co................. 347,208
-----------
861,305
-----------
Photo Equipment & Supplies (3.8%):
8,845 Eastman Kodak Co................ 564,974
-----------
Pipelines (0.4%):
1,250 Consolidated Natural Gas Co..... 60,859
-----------
Publishing (2.0%):
8,279 Reed International PLC-ADR...... 293,905
-----------
Retail Stores/Catalog (1.2%):
4,367 J.C. Penney Co., Inc............ 176,864
-----------
Telecommunications (15.8%):
5,423 Alltel Corp..................... 338,260
8,383 AT&T Corp....................... 669,067
6,221 Bell Atlantic Corp.............. 321,548
8,626 Frontier Corp................... 447,474
5,228 GTE Corp........................ 316,294
4,824 Tele Danmark A/S -- ADR......... 236,376
525 U.S. West, Inc.................. 28,908
-----------
2,357,927
-----------
Tire & Rubber (0.5%):
1,620 The Goodyear Tire & Rubber
Co............................ 80,696
-----------
</TABLE>
7
<PAGE> 9
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- -------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Tobacco (3.7%):
15,680 Phillip Morris Companies,
Inc........................... $ 551,740
-----------
Transportation (0.2%):
781 CSX Corp........................ 30,410
-----------
Total COMMON STOCKS (Cost $14,035,390)...... 14,578,139
-----------
SHORT-TERM INVESTMENTS (2.4%):
Cash Sweep Account (2.4%):
365,798 UBOC Sweep Account Willamette
Asset Management.............. 365,798
-----------
Total Short-Term Investments (Cost
$365,798)................................... 365,798
-----------
Total (Cost $14,401,188) (a)................ $14,943,937
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $14,964,954.
ADR -- American Depository Receipt
PLC -- Public Limited Company
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................... $1,416,791
Unrealized depreciation......................... (874,042)
----------
Net unrealized appreciation..................... $ 542,749
==========
</TABLE>
See notes to financial statements.
8
<PAGE> 10
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
1. ORGANIZATION:
The Coventry Group (the "Group") was organized as a Massachusetts business
trust on January 8, 1992 and is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end management investment
company. The accompanying financial statements and financial highlights are
those of Willamette Value Fund, (the "Fund"), which commenced operations on
May 26, 1998. The Fund offers one managed investment portfolio, as a series
of the Group, and is authorized to issue an unlimited number of shares. The
Fund offers one class of shares of beneficial interest ("shares").
The Fund's investment objective is to provide above average total return
through a combination of capital appreciation and dividend income by
investing in primarily equity securities.
2. SIGNIFICANT ACCOUNTING PRINCIPLES:
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its 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 of assets and liabilities
at the date of the financial statements and the reported amounts of income
and expenses for the period. Actual results could differ from those
estimates.
SECURITIES VALUATION:
Securities are valued as of 4:00 p.m. on any day in which the New York
Stock exchange is open for trading. Equity securities are valued at the
last reported sales price on the securities exchange or in the principal
over-the-counter market in which such securities are primarily traded.
Listed securities for which last sales prices are not available are valued
at the last bid price. If the last bid price is not available, the
securities are valued at their fair value in the best judgement of the
Adviser under the supervision of the Group's Board of Trustees. Debt
securities with remaining maturities of 60 days or less will be valued at
their amortized cost. Other debt securities are generally valued by pricing
agents.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Gains or losses realized on sales of securities are determined by comparing
the identified cost of the security lot sold with the net sales proceeds.
ORGANIZATION COSTS:
All expenses in connection with the Fund's organization and registration
under the 1940 Act and the Securities Act of 1933 were paid by the Fund.
Such expenses are being amortized on a straight-line basis over sixty
months beginning with the date of the initial public offering. The Fund
paid $32,958 in organizational costs.
Continued
9
<PAGE> 11
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1999
DIVIDENDS TO SHAREHOLDERS:
The Fund intends to declare its net investment income quarterly as a
dividend to Shareholders at the close of business on the day of
declaration, and generally will, pay such dividends, if any, quarterly. The
Fund also intends to distribute its capital gains, if any, at least
annually, normally in December of each year. A Shareholder will
automatically receive all income dividends and capital gains distributions
in additional full and fractional Shares of the Fund at net asset value as
of the ex-dividend date, unless the Shareholder elects to receive dividends
or distributions in cash.
FEDERAL INCOME TAXES:
The Fund intends to qualify annually and elect to be treated as a regulated
investment company under the Internal Revenue Code of 1986, as amended (the
"Code"). To qualify, the Fund must meet certain income, distribution and
diversification requirements. In any year in which the Fund qualifies as a
regulated investment company and distributes substantially all of its
income, the Fund generally will not pay any U.S. federal income or excise
tax.
3. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided by the Willamette Asset Managers,
Inc. (the "Adviser"). The Adviser is an affiliate of Phillips & Company
Securities, Inc. ("Phillips") and Willamette Securities, Inc., each a
registered broker-dealer. Under the terms of the investment advisory
agreement, the Adviser is entitled to receive fees, computed daily and paid
monthly, at the annual rate of 1.00% of the fund's average daily net
assets.
BISYS Fund Services ("BISYS"), serves the Fund as the Distributor. Pursuant
to the Fund's Distribution and Shareholder Service Plan (the 12b-1 Plan"),
the Distributor may receive fees computed at the annual rate of 0.50% of
the average daily net assets of the Fund.
BISYS Fund Services Ohio, Inc. ("BISYS Ohio"), serves the Fund as
Administrator and Fund Accountant. Under the terms of the administration
agreement, the Administrator receives a fee computed daily and paid
periodically, at an annual rate of 0.20% of the Fund's average daily net
assets. Under the terms of the Fund Accounting Agreement, accounting fees
are computed daily and paid monthly at an annual rate of 0.03% or a minimum
of $35,000 plus certain out-of-pocket expenses.
BISYS Fund Services, Inc. ("BISYS Inc."), serves the Fund as Transfer
Agent. Under the terms of the Transfer Agent Agreement, the Company's fees
are based upon a specified amount per shareholder with specified minimum
per portfolio amounts and surcharges, plus certain out-of-pocket expenses.
The Fund has adopted an Expense Limitation Agreement (the "Agreement")
dated February 1, 1999 whereby the Adviser reduces its fee and reimburses
the Fund so that the operating expenses of the Fund are limited to an
annual rate (as a percentage of the Fund's average daily net assets) of
2.90% for the period ended March 31, 1999 and 2.75% for the period from
April 1, 1999 to March 31, 2000. In connection with the Agreement, the Fund
has agreed to pay the Adviser the amount of fees and
Continued
10
<PAGE> 12
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 1999
reimbursements that, if not for the above limitation, would have been
payable or reimbursable to the Adviser for a period of up to two years
after the limitation periods, provided that the Fund's operating expenses,
without regard to such repayment or reimbursement, are at an annual rate
(as a percentage of the Fund's average daily net assets) of 2.75% or less.
Additionally, the Fund will not make repayments or reimbursements in an
amount that would cause the Fund's total operating expenses to exceed the
2.75% annual expense limitation. For the period ended March 31, 1999, the
Adviser waived/reimbursed $27,500.
The Distributor is entitled to receive commissions on sales of shares of
the Fund. For the period ended March 31, 1999, BISYS received $733,233 from
commissions earned on sales of shares of the Fund, of which none was
reallowed to broker/dealers affiliated with the Fund.
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 March 31, 1999 was $1,326. No remuneration was paid
from the Fund to any other officer or trustee.
4. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
period ended March 31, 1999 (a) were $14,063,204 and $33,820, respectively.
11
<PAGE> 13
THE COVENTRY GROUP
WILLAMETTE VALUE FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VALUE FUND
-------------
FOR PERIOD
ENDED
MARCH 31,
1999(a)
-------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 10.00
-------
INVESTMENT ACTIVITIES
Net investment income..................................... --**
Net realized and unrealized gains from investments........ 0.11
-------
Total from investment activities....................... 0.11
-------
DISTRIBUTIONS Net investment income......................... --**
-------
NET ASSET VALUE, END OF PERIOD.............................. $ 10.11
=======
Total return (excludes sales charge)........................ 1.11%(b)
RATIOS/SUPPLEMENTARY DATA:
Net assets, end of period (000)........................... $14,965
Ratio of net expenses to average net assets............... 2.90%(c)
Ratio of gross expenses to average net assets *........... 3.20%(c)
Ratio of net investment income to average net assets...... 0.02%(c)
Portfolio turnover........................................ 0.39%
</TABLE>
- ---------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Amount is less than $0.005
(a) For the period from May 26, 1998 (commencement of operations) to March 31,
1999.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
12
<PAGE> 14
REPORT OF INDEPENDENT AUDITORS
TO THE SHAREHOLDERS OF THE WILLAMETTE VALUE FUND AND
BOARD OF TRUSTEES OF THE COVENTRY GROUP
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Willamette Value Fund (the Fund) as of March
31, 1999, and the related statement of operations, the statement of changes in
net assets, and the financial highlights for the period from May 26, 1998
(commencement of operations) to March 31, 1999. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit 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. 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 audit provides 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
Willamette Value Fund as of March 31, 1999, and the results of its operations,
the changes in its net assets, and its financial highlights for the period from
May 26, 1998 (commencement of operations) to March 31, 1999, in conformity with
generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Columbus, Ohio
April 28, 1999
13
<PAGE> 15
[This Page Intentionally Left Blank]
<PAGE> 16
INVESTMENT ADVISER
Willamette Asset Managers, Inc.
One Pacific Square
220 NW 2nd Avenue, Suite 950
Portland, Oregon 97209
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
INDEPENDENT AUDITORS
Ernst & Young LLP
10 West Broad Street
Suite 2300
Columbus, Ohio 43215
CUSTODIAN
Union Bank of California
475 Sansome Street, 15th Floor
San Francisco, California 94111
5/99
WILLAMETTE
VALUE
FUND
WILLAMETTE VALUE FUND
Investment Adviser
ANNUAL REPORT
MARCH 31, 1999
