<PAGE>
Shareholder Letter Brenton Mutual Funds
--------------------------------------------------------------------------------
Dear Shareholders:
The domestic economy continues to roar; fourth quarter Gross Domestic Product
(GDP) was revised to a 7.3% annualized rate. The first quarter GDP growth is
expected to come in at 5% or better. This economic strength is reflected in low
unemployment, improving productivity, higher corporate profits and strong
consumer spending. All this has encouraged the Federal Reserve Board to
continue with a gradual raising of short interest rates in an attempt to cool
economic growth to a rate more compatible with low inflation. In fact, this
lack of inflation has puzzled both economists and investors alike.
The financial markets finished the year strong and this strength continued into
the New Year. The market continues to favor a narrow number of companies
representing the "new" economy typified by high price to revenue and earnings
measures, while shunning old economy stocks that can be bought at much better
valuations. Technology is the hottest area but one we feel is subject to
increased risk; current valuations are way ahead of expectations. Any earnings
or revenue shortfall is met with momentum, investors running to the exit taking
any price to get out. This has caused much of the volatility we have witnessed
in the stock market.
We believe this is a time for investors to pay more attention to risk and focus
on companies that are best able to manage their earnings in a very competitive
economic environment. Price increases are hard to come by and costs must be
well managed.
Value Equity Fund
The Brenton Value Equity Fund has a one-year return of 14.40% (without load) as
of March 31, 2000 versus the Standard and Poor's 500 Index of 17.94%. The
annualized three-year return of 21.30% (without load) and annualized five-year
return of 21.47% (without load) also reflect under-performance versus the
Standard and Poor's 500 Index returns of 27.40% and 26.75%, respectively. The
growth area of the market continues to drive the overall performance of the
Standard and Poor's 500 Index. This trend has been in place for most of the
past five years which makes out-performance for a value oriented manager
difficult.
Corporate earnings have continued to be strong despite the increases in rates
by the Federal Reserve Board. The question has become who will win, the Federal
Reserve Board or corporations? We feel good about earnings growth for the "old"
economy stocks but continue to doubt the ability of the "new" economy companies
to post large growth rates for the foreseeable future. We continue to focus our
attention on these "old" economy companies where we feel that there is real
value today and the potential for solid share price appreciation when a
rotation does occur.
[GRAPH]
Value Equity Fund
Value of a $10,000 Investment
Value Equity Value Equity S&P 500
Fund load* Fund no load Index
------------ ------------ -------
8/9/94 9,550 10,000 10,000
3/31/95 10,435 10,925 11,142
3/31/96 13,162 13,781 14,713
3/31/97 15,457 16,184 17,623
3/31/98 21,269 22,269 26,099
3/31/99 24,119 25,252 30,917
3/31/00 27,593 28,890 36,461
----------------------------------------------
Since
Date 1 Year 5 Year Inception
(08/09/94)
----------------------------------------------
03/31/00 9.25* 20.36%* 19.71%*
----------------------------------------------
*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.
The chart represents historical investments of $10,000 in the Brenton Value
Equity Fund from 8/9/94 to 3/31/00, and represents the reinvestment of
dividends and capital gains in the Fund.
--------------------------------------------------------------------------------
1
<PAGE>
Shareholder Letter Brenton Mutual Funds
--------------------------------------------------------------------------------
Intermediate U.S. Government Securities Fund
During the past several months, there have been a number of factors that have
caused Treasury yields to decline precipitously. These factors include Treasury
buy back of government debt, a reduction in the amount of Treasury debt
issuance, the threat of revamping federal policy toward Government Sponsored
Enterprises (GSEs) and technology stock volatility. The result of the decline
in yields is that Treasury returns have been fairly strong. Unfortunately, the
returns on agency or GSE securities and corporates have not been the same
magnitude as that of Treasuries due to the factors previously mentioned. When
treasury yields declined, agency and corporate yields did not decline by the
same magnitude resulting in lower total returns.
The difference in yield between Treasuries and agencies has never been so
wide--not during the farm crisis, the S&L bailout, or during the Russian debt
crisis. Therefore, on a longer-term basis this spread widening has created
superior relative value among agencies and corporates. We have adopted a
portfolio structure for your fund with a duration very close to the Lehman
Brothers Intermediate Government/Corporate Bond index.
U.S. Government Money Market Fund/1/
The last year has been characterized by a federal reserve monetary policy of
restraint. The Federal Reserve has raised the federal funds rate five times for
a total of 1.25%. The current Federal Reserve funds rate target is 6.0%. At
this time, we expect two more Federal Reserve tightenings in May and early
summer. That being the case, we expect to continue to focus on maintaining high
credit quality in your funds while maintaining 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/ Michael R. Hamilton
Michael R. Hamilton
Vice President/Senior Portfolio Manager
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.
[GRAPH]
Intermediate U.S. Government Securities Fund
Value of a $10,000 Investment
Intermediate U.S. Intermediate U.S. Merrill Lynch
Government Securities Government Securities Government
Fund load* Fund no load Index
--------------------- --------------------- -------------
8/9/94 9,650 10,000 10,000
3/31/95 9,983 10,342 10,372
3/31/96 10,730 11,116 11,465
3/31/97 11,106 11,506 11,955
3/31/98 12,238 12,678 13,236
3/31/99 12,973 13,440 14,151
3/31/00 12,920 13,385 14,513
----------------------------------------------
Since
Date 1 Year 5 Year Inception
(08/09/94)
----------------------------------------------
03/31/00 (3.86)%* 4.55%* 4.65%*
----------------------------------------------
*Reflects a 3.50% Sales Charge.
Past performance is not predictive of
future results.
/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
<PAGE>
Shareholder Letter Brenton Mutual Funds
--------------------------------------------------------------------------------
The chart represents historical investments of $10,000 in the Brenton
Intermediate U.S. Government Securities Fund from 8/9/94 to 3/31/00, and
represents the reinvestment of dividends and capital gains in the Fund.
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.
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
-------------------------------------------------------------------------------
The Board of Trustees and Shareholders
Brenton Mutual Funds of The Coventry Group
We have audited the accompanying statements of assets and liabilities,
including the schedules of portfolio investments, of Brenton Mutual Funds
(comprised of Brenton U.S. Government Money Market Fund, Brenton Intermediate
U.S. Government Securities Fund, and Brenton Value Equity Fund) (the Funds) as
of March 31, 2000, 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 auditing standards generally
accepted in the United States. 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, 2000, 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 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 comprising Brenton Mutual Funds at March 31,
2000, 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
accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Columbus, Ohio
May 8, 2000
-------------------------------------------------------------------------------
5
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Assets and Liabilities
March 31, 2000
<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
$47,740,587; $24,561,529;
$30,627,671, respectively).......... $47,740,587 $23,990,531 $56,483,488
Cash................................. 117 -- --
Interest and dividends receivable.... -- 380,562 38,500
Prepaid expenses and other assets.... 4,817 1,642 4,043
----------- ----------- -----------
Total Assets..................... 47,745,521 24,372,735 56,526,031
----------- ----------- -----------
LIABILITIES:
Dividends payable.................... 201,370 -- --
Accrued expenses and other payables:
Investment advisory fees........... 10,408 10,325 30,761
Administration fees................ 1,000 333 1,551
Distribution and shareholder
service fees...................... 1,916 -- --
Other fees......................... 46,510 26,378 26,550
----------- ----------- -----------
Total Liabilities................ 261,204 37,036 58,862
----------- ----------- -----------
Total net assets................. $47,484,317 $24,335,699 $56,467,169
=========== =========== ===========
NET ASSETS:
Capital.............................. $47,485,852 $25,290,591 $30,742,509
Undistributed (distribution in excess
of) net investment income/(loss).... -- 10,059 2,191
Net unrealized
appreciation/(depreciation) from
investments......................... -- (570,998) 25,855,817
Accumulated undistributed net
realized gains/(losses) from
investment transactions............. (1,535) (393,953) (133,348)
----------- ----------- -----------
Net Assets....................... $47,484,317 $24,335,699 $56,467,169
=========== =========== ===========
Single Class or Class M Shares
Net Assets........................... $39,954,146 24,335,699 56,467,169
Outstanding units of beneficial
interest (shares)................... 39,955,552 2,506,147 2,861,977
----------- ----------- -----------
Net asset value--redemption price per
share............................... $ 1.00 $ 9.71 $ 19.73
=========== =========== ===========
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) $ 10.06 $ 20.66
=========== =========== ===========
Class S Shares
Net Assets........................... $ 7,530,171
Outstanding units of beneficial
interest (shares)................... 7,530,340
===========
Net asset value--offering and
redemption price per share.......... $ 1.00(a)
===========
</TABLE>
--------
(a) Offering price and redemption price are the same for the 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, 2000
<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..................... $2,629,788 $ 1,613,529 $ --
Dividend income..................... -- 14,275 738,357
---------- ----------- ----------
Total income...................... 2,629,788 1,627,804 738,357
---------- ----------- ----------
EXPENSES:
Investment advisory fees............ 198,058 127,168 375,675
Administration fees................. 99,029 51,679 113,558
Distribution and shareholder service
fees--
Single Class or Class M............ 196,962 129,198 283,896
Distribution and shareholder service
fees--Class S....................... 74,162 -- --
Custodian fees...................... 16,239 5,541 11,973
Fund accounting fees................ 39,740 30,161 29,123
Transfer agent fees................. 92,337 25,583 63,014
Trustees' fees...................... 4,167 2,661 5,008
Other............................... 77,058 40,537 58,303
---------- ----------- ----------
Total Expenses.................... 797,752 412,528 940,550
Less: Fee waivers and expense
reimbursements...................... (315,848) (150,921) (261,371)
---------- ----------- ----------
Net expenses...................... 481,904 261,607 679,179
---------- ----------- ----------
Net Investment Income............... 2,147,884 1,366,197 59,178
---------- ----------- ----------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains/(losses) from
investment transactions............. (1,177) (393,284) 3,613,453
Net change in unrealized
appreciation/(depreciation) from
investments........................ -- (1,095,636) 4,112,620
---------- ----------- ----------
Net realized gains/(losses) from
investments......................... (1,177) (1,488,920) 7,726,073
---------- ----------- ----------
Change in net assets resulting from
operations.......................... $2,146,707 $ (122,723) $7,785,251
========== =========== ==========
</TABLE>
See notes to financial statements.
7
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
---------------------------
Year Ended Year Ended
March 31, March 31,
2000 1999
------------- ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income........................... $ 2,147,884 $ 1,970,730
Net realized gains/(losses) from investment
transactions.................................... (1,177) --
Net change in unrealized
appreciation/(depreciation) from investments..... -- --
------------- ------------
Change in net assets resulting from operations... 2,146,707 1,970,730
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class M........................................ (1,741,067) (1,754,516)
Class S........................................ (406,817) (216,840)(a)
------------- ------------
Change in net assets from shareholder
distributions.................................... (2,147,884) (1,971,356)
------------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued
Class M........................................ 103,312,420 82,586,499
Class S........................................ 24,846,609 25,295,714(a)
Dividends reinvested
Class M........................................ 378,310 379,814
Class S........................................ 408,354 185,513(a)
Cost of shares redeemed
Class M........................................ (102,132,997) (86,628,864)
Class S........................................ (27,794,132) (15,411,718)(a)
------------- ------------
Change in net assets from capital share
transactions..................................... (981,436) 6,406,958
------------- ------------
Change in net assets............................. (982,613) 6,406,332
NET ASSETS:
Beginning of period............................. 48,466,930 42,060,598
------------- ------------
End of period................................... $ 47,484,317 $ 48,466,930
============= ============
SHARE TRANSACTIONS:
Issued
Class M........................................ 103,312,774 82,586,499
Class S........................................ 24,846,609 25,295,714(a)
Reinvested
Class M........................................ 378,310 379,814
Class S........................................ 408,354 185,513(a)
Redeemed
Class M........................................ (102,132,997) (86,628,864)
Class S........................................ (27,794,132) (15,411,718)(a)
------------- ------------
Change in shares................................. (981,082) 6,406,958
============= ============
</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
Securities Fund Value Equity Fund
------------------------------ ------------------------
Year Ended Year Ended Year Ended Year Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
-------------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 1,366,197 $ 1,485,737 $ 59,178 $ 207,568
Net realized
gains/(losses) from
investment
transactions.......... (393,284) 21,610 3,613,453 7,138,635
Net change in
unrealized
appreciation/
(depreciation) from
investments........... (1,095,636) 130,863 4,112,620 (29,860)
-------------- -------------- ----------- -----------
Change in net assets
resulting from
operations.............. (122,723) 1,638,210 7,785,251 7,316,343
-------------- -------------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (1,378,292) (1,484,965) (61,667) (199,509)
Dividends to
shareholders from net
realized gains from
investment
transactions.......... (11,736) (203,382) (6,926,213) (6,896,958)
-------------- -------------- ----------- -----------
Change in net assets
from shareholder
distributions........... (1,390,028) (1,688,347) (6,987,880) (7,096,467)
-------------- -------------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares
issued................ 4,068,954 9,151,758 7,084,184 11,132,692
Dividends reinvested... 688,260 800,027 4,992,293 5,378,568
Cost of shares
redeemed.............. (7,747,788) (7,395,056) (18,324,114) (11,761,484)
-------------- -------------- ----------- -----------
Change in net assets
from capital share
transactions........... (2,990,574) 2,556,729 (6,247,637) 4,749,776
-------------- -------------- ----------- -----------
Change in net assets.... (4,503,325) 2,506,592 (5,450,266) 4,969,652
NET ASSETS:
Beginning of period.... 28,839,024 26,332,432 61,917,435 56,947,783
-------------- -------------- ----------- -----------
End of period.......... $ 24,335,699 $ 28,839,024 $56,467,169 $61,917,435
============== ============== =========== ===========
SHARE TRANSACTIONS:
Issued................. 410,027 881,371 356,714 578,439
Reinvested............. 69,214 76,812 270,215 300,904
Redeemed............... (775,926) (710,997) (908,310) (611,295)
-------------- -------------- ----------- -----------
Change in shares........ (296,685) 247,186 (281,381) 268,048
============== ============== =========== ===========
</TABLE>
See notes to financial statements.
9
<PAGE>
THE COVENTRY GROUP
BRENTON U.S. GOVERNMENT MONEY MARKET FUND
Schedule of Portfolio Investments
March 31, 2000
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
----------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Government Agencies (100.5%):
Federal Home Loan Bank:
$11,604,000 6.05%,* 04/03/00...................................... $11,600,100
14,296,000 5.85%,* 04/04/00...................................... 14,289,030
4,000,000 5.73%,* 04/26/00...................................... 3,984,083
6,000,000 5.69%,* 05/12/00...................................... 5,961,118
3,153,000 5.74%,* 07/19/00...................................... 3,098,203
4,000,000 5.82%,* 08/01/00...................................... 3,921,107
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
---------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies, continued:
$5,067,000 5.95%,* 11/02/00..................................... $ 4,886,946
-----------
Total U.S. Government Agencies 47,740,587
-----------
Total Investments
(Amortized Cost $47,740,587)(a)--100.5% 47,740,587
Liabilities in excess of other assets--(0.5)% (256,270)
-----------
TOTAL NET ASSETS--100.0% $47,484,317
===========
</TABLE>
--------
Percentages indicated are based on net assets of $47,484,317.
*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, 2000
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds (7.8%):
Financial Services
800,000 Abbey National First Capital, 8.20%, 10/15/2004........ $ 809,000
1,000,000 General Electric Capital, 8.625%, 06/15/08............. 1,090,000
-----------
Total Corporate Bonds 1,899,000
-----------
U.S. Government Agencies (62.7%):
Fannie Mae (10.6%):
411,040 6.50%, 3/1/09.......................................... 398,963
1,409,981 7.50%, 11/1/17......................................... 1,396,319
792,032 7.50%, 12/1/25......................................... 781,387
-----------
2,576,669
-----------
Federal Home Loan Bank: (48.7%):
3,000,000 5.69%, 4/15/03......................................... 2,886,330
1,000,000 6.89%, 4/6/04.......................................... 992,760
2,200,000 5.515%, 4/13/04........................................ 2,079,440
1,000,000 7.36% 7/1/04........................................... 1,009,330
1,000,000 7.32%, 4/21/05......................................... 1,009,370
3,000,000 6.32%, 6/28/05......................................... 2,898,960
1,000,000 6.15%, 11/28/05........................................ 956,140
-----------
11,832,330
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies, continued:
Freddie Mac (2.3%):
589,300 6.50%, 7/1/08.......................................... $ 569,776
-----------
Ginnie Mae (1.1%):
271,191 7.00%, 5/1/10.......................................... 266,358
-----------
Total U.S. Government Agencies 15,245,133
-----------
U.S. Treasury Notes (26.4%):
5,000,000 5.88%, 9/30/02......................................... 4,931,350
1,500,000 6.25%, 2/15/03......................................... 1,491,330
-----------
Total U.S. Treasury Notes 6,422,680
-----------
Investment Companies (1.7%):
423,718 Goldman Federal Money Market Portfolio................. 423,718
-----------
Total Investment Companies 423,718
-----------
Total Investments (Cost $24,561,529)(a)--98.6% 23,990,531
Other assets in excess of liabilities--1.4% 345,168
-----------
TOTAL NET ASSETS--100.0% $24,335,699
===========
</TABLE>
--------
Percentages indicated are based on net assets of $24,335,699.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 29,161
Unrealized depreciation... (600,159)
---------
Net unrealized
depreciation.............. $(570,998)
=========
</TABLE>
See notes to financial statements.
11
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments
March 31, 2000
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (99.4%):
Aerospace/Defense (1.5%):
7,000 General Motors Corp.--Class H (b).......................... $ 871,500
-----------
Banks (5.7%):
15,276 Bank America Corp.......................................... 801,035
10,000 Chase Manhattan Corp....................................... 871,875
6,000 First Union Corp........................................... 223,500
10,000 U.S. Bancorp............................................... 218,750
27,000 Wells Fargo Co............................................. 1,105,312
-----------
3,220,472
-----------
Beverages--Non-alcoholic (1.8%):
9,200 Coca-Cola Co............................................... 431,825
16,700 PepsiCo, Inc............................................... 577,194
-----------
1,009,019
-----------
Beverages--Wines & Spirits (1.1%):
10,000 Anheuser-Busch Cos., Inc................................... 622,500
-----------
Capital Equipment (1.0%):
10,000 Illinois Tool Works, Inc................................... 552,500
-----------
Chemicals--Diversified (0.5%):
5,019 Du Pont (E.I.) de Nemours & Co............................. 265,380
-----------
Computer Software (12.0%):
10,000 America Online, Inc........................................ 672,500
28,000 Cisco Systems, Inc. (b).................................... 2,164,749
8,000 Dell Computer Corp. (b).................................... 431,500
7,000 Electronic Data Systems Corp............................... 449,313
6,500 Hewlett-Packard Co......................................... 861,656
20,000 Microsoft Corp. (b)........................................ 2,125,000
-----------
6,704,718
-----------
Computers (4.5%):
10,000 EMC Corp. (b).............................................. 1,250,000
11,000 International Business Machines Corp....................... 1,298,000
-----------
2,548,000
-----------
Cosmetics/Personal Care (0.5%):
8,000 Gillette Co................................................ 301,500
-----------
Diversified Operations (5.8%):
16,600 General Electric Co........................................ 2,576,112
8,100 Minnesota Mining & Manufacturing Co........................ 717,356
-----------
3,293,468
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Electrical Equipment (2.9%):
6,000 Emerson Electric Co........................................ $ 317,250
27,000 Tyco International Ltd..................................... 1,346,625
-----------
1,663,875
-----------
Electronic Components (5.5%):
15,000 Intel Corp................................................. 1,979,062
8,000 Motorola, Inc.............................................. 1,139,000
-----------
3,118,062
-----------
Electronic Components--Semiconductors (2.9%):
20,000 Xilinx, Inc. (b)........................................... 1,656,250
-----------
Financial Services (6.9%):
25,000 Citigroup, Inc............................................. 1,482,812
7,500 Federal Home Loan Mortgage Corp............................ 331,406
12,000 MGIC Investment Corp....................................... 523,500
16,000 Morgan Stanley Dean Witter & Co............................ 1,305,000
10,000 Washington Mutual Inc...................................... 265,000
-----------
3,907,718
-----------
Health Care--Drugs (3.0%):
19,000 Bristol Myers Squibb Co.................................... 1,097,250
10,000 Merck & Co., Inc........................................... 621,250
-----------
1,718,500
-----------
Health Care--General Products (1.5%):
12,000 Johnson & Johnson.......................................... 840,750
-----------
Household--General Products (1.3%):
10,000 Newell Rubbermaid Inc...................................... 248,125
9,000 Procter & Gamble Co........................................ 506,250
-----------
754,375
-----------
Insurance (1.9%):
7,500 American International Group, Inc.......................... 821,250
8,000 Reliastar Financial Corp................................... 271,000
-----------
1,092,250
-----------
Medical Instruments (1.4%):
15,000 Medtronic, Inc............................................. 771,563
-----------
Medical--Wholesale Drug Distribution (1.0%):
15,000 Pfizer, Inc................................................ 548,438
-----------
</TABLE>
Continued
12
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Motor Vehicles (1.0%):
7,000 General Motors Corp........................................ $ 579,688
-----------
Multimedia (1.2%):
7,000 Time Warner Inc............................................ 700,000
-----------
Office Supplies, Automation & Equipment (1.7%):
8,000 Avery Dennison............................................. 488,500
10,000 Pitney Bowes, Inc.......................................... 446,875
-----------
935,375
-----------
Oil & Gas (0.7%):
10,000 Burlington Resources, Inc.................................. 370,000
-----------
Oil Companies--Integrated (3.5%):
10,000 BP Amoco Co., PLC.......................................... 530,625
18,260 Exxon Mobil Corp Common Stock.............................. 1,420,856
-----------
1,951,481
-----------
Oil Field Services (1.8%):
10,563 Conoco Class B............................................. 270,677
10,000 Schlumberger Ltd........................................... 765,000
-----------
1,035,677
-----------
Paper & Related Products (2.9%):
15,000 CVS Corp................................................... 563,438
9,000 Kimberly-Clark Corp........................................ 504,000
10,000 Lowe's Cos., Inc........................................... 583,750
-----------
1,651,188
-----------
Pharmaceuticals (1.4%):
9,000 Schering-Plough Corp....................................... 330,750
5,000 Warner Lambert Co.......................................... 487,500
-----------
818,250
-----------
Pipelines (1.1%):
15,000 El Paso Energy Corp........................................ 605,625
-----------
Restaurants (0.7%):
10,000 McDonald's Corp............................................ 375,625
-----------
Retail--Convenience Stores (0.7%):
35,000 Casey's General Stores, Inc................................ 380,625
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- -------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Retail--General Merchandise (2.0%):
20,000 Wal Mart Stores, Inc.................................... $ 1,110,000
-----------
Retail--Specialty Stores (1.9%):
16,500 Home Depot, Inc......................................... 1,064,250
-----------
Steel (0.5%):
6,000 Nucor Corp.............................................. 300,000
-----------
Telecommunications (2.0%):
25,000 MCI Worldcom, Inc. (b).................................. 1,132,813
-----------
Telecommunications Equipment (1.4%):
13,000 Lucent Technologies, Inc................................ 789,750
-----------
Utilities--Electric (2.1%):
15,000 AES Corp. (b)........................................... 1,181,250
-----------
Utilities--Telephone (4.6%):
15,000 AT&T Corp............................................... 843,750
14,800 GTE Corp................................................ 1,050,800
17,000 SBC Communications, Inc................................. 714,000
-----------
2,608,550
-----------
Wholesale (3.5%):
25,000 Arrow Electronics, Inc. (b)............................. 881,250
30,000 Sysco Corp.............................................. 1,070,625
-----------
1,951,875
-----------
Wholesale & International Trade (2.0%):
22,000 Costco Wholesale Corp................................... 1,156,375
-----------
Total Common Stocks 56,159,235
-----------
Investment Companies (0.6%):
324,253 Goldman Federal Money Market Portfolio.................. 324,253
-----------
Total Investment Companies 324,253
-----------
Investment (Cost $30,627,671)(a)--100.0% 56,483,488
Liabilities in excess of other assets--0.00% (16,319)
-----------
TOTAL NET ASSETS--100.0% $56,467,169
===========
</TABLE>
Continued
13
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
------
Percentages indicated are based on net assets of $56,467,169.
(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... $26,694,493
Unrealized depreciation... (838,676)
-----------
Net unrealized
appreciation.............. $25,855,817
===========
</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, 2000
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.
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, 2000
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, Continued
16
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
March 31, 2000
2000, the U.S. Government Money Market Fund and the Intermediate U.S.
Government Securities 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...................... $ 348 2005
U.S. Government Money Market Fund...................... 5 2006
Intermediate U.S. Government Securities Fund........... 44,683 2008
</TABLE>
As of March 31, 2000, 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 Gain/(Loss)
Investment Income On Investments
----------------- --------------------
<S> <C> <C>
Intermediate U.S. Government
Securities Fund.................... $413 $(413)
</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
fiscal year ended March 31, 2000 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Intermediate U.S. Government Securities Fund......... $10,590,406 $13,733,017
Value Equity Fund.................................... 4,778,136 15,754,561
</TABLE>
4. Related Party Transactions:
Investment advisory services are provided to the Funds 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; Continued
17
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
March 31, 2000
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.
Brenton Bank also serves as custodian to the Funds. The Northern Trust
Company served as sub-investment adviser to the U.S. Government Money Market
Fund from April 1, 1999 to December 31, 1999. On January 1, 2000 Brenton
Bank assumed the full management responsibilities.
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 and transfer agent. Such officers and trustees are paid no
fees directly by the Funds for serving as officers and trustees of the
Group.
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").
BISYS is also entitled to receive commissions on sales of shares of the
Funds. For the fiscal year ended March 31, 2000, BISYS received $9,803 from
commissions earned on sales of shares of the Fund, of which $7,278 was
reallowed to broker/dealers affiliated with Brenton Bank.
Continued
18
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
March 31, 2000
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the fiscal year ended March 31, 2000:
<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% 0.50% 0.74%
Voluntary fee reductions........... $ 51,114 $ -- $ --
Administration Fees:
Annual fee before voluntary fee
reductions (percentage of average
net assets)....................... 0.20% 0.20% 0.20%
Voluntary fee reductions........... $ 24,756 $ 25,838 $ --
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........... $190,537 $125,083 $261,371
12b-1 Fees--Class S
Annual fee before voluntary fee
reductions (percentage of average
net assets)....................... 0.75%
Voluntary fee reductions........... $ 49,441
</TABLE>
5. Federal Income Tax information: (unaudited)
During the fiscal year ended March 31, 2000 the following Funds declared
long-term capital gain distributions as follows:
<TABLE>
<CAPTION>
Long-term 20%
-------------
<S> <C>
Intermediate U.S. Government Securities Fund.................... $ 766
Value Equity Fund............................................... 5,483,825
</TABLE>
For the shareholders of the Value Equity Fund, 49.12% of the total ordinary
income distributions paid during the fiscal year ended March 31, 2000
qualify for the corporate dividends received deduction.
Capital losses incurred by the U.S. Government Money Market, Intermediate
U.S. Government Securities and the Value Equity Funds after October 31,
respectively within the Fund's fiscal year are deemed to arise on the first
business day of the following Fiscal year for tax purposes. The Funds
incurred and will elect to defer such capital losses of $1,182, $349,270 and
$134,350.
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 S
--------------------
Year October 8,
Ended 1998 to
March 31, March 31,
2000 1999(a)
--------- ----------
<S> <C> <C>
Net Asset Value, Beginning of Period.................... $1.000 $ 1.000
------ -------
Investment Activities
Net investment income................................. 0.041 0.020
------ -------
Total from Investment Activities.................... 0.041 0.020
------ -------
Distributions
Net investment income................................. (0.041) (0.020)
------ -------
Total Distributions................................. (0.041) (0.020)
------ -------
Net Asset Value, End of Period.......................... $1.000 $ 1.000
====== =======
Total return (excludes sales charge)................ 4.23% 1.89%(b)
Ratios/Supplementary Data:
Net Assets, End of period (000)....................... $7,530 $10,070
Ratio of expenses to average net assets............... 1.17% 1.11%(c)
Ratio of net investment income to average net assets.. 4.11% 3.94%(c)
Ratio of expenses to average net assets (*)........... 1.82% 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.
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 M
-------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31,
2000 1999 1998 1997 1996
--------- --------- --------- --------- ---------
<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...... 0.044 0.045 0.048 0.046 0.050
------- ------- ------- ------- -------
Total from Investment
Activities.............. 0.044 0.045 0.048 0.046 0.050
------- ------- ------- ------- -------
Distributions
Net investment income...... (0.044) (0.045) (0.048) (0.046) (0.050)
------- ------- ------- ------- -------
Total Distributions...... (0.044) (0.045) (0.048) (0.046) (0.050)
------- ------- ------- ------- -------
Net Asset Value, End of
Period....................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total return (excludes
sales charge)........... 4.47% 4.58% 4.96% 4.67% 5.12%
Ratios/Supplementary Data:
Net Assets, End of period
(000)..................... $39,954 $38,397 $42,061 $34,796 $35,436
Ratio of expenses to
average net assets........ 0.93% 0.81% 0.72% 0.77% 0.75%
Ratio of net investment
income to
average net assets........ 4.39% 4.47% 4.86% 4.57% 4.99%
Ratio of expenses to
average net assets*....... 1.56% 1.49% 1.41% 1.47% 1.46%
</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.
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 Year
Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31,
2000 1999 1998 1997 1996
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period........ $ 10.29 $ 10.30 $ 9.91 $ 10.14 $ 9.99
------- ------- ------- ------- -------
Investment Activities
Net investment income..... 0.53 0.54 0.59 0.57 0.59
Net realized and
unrealized gains/(losses)
from investments......... (0.57) 0.06 0.40 (0.22) 0.15
------- ------- ------- ------- -------
Total from Investment
Activities............. (0.04) 0.60 0.99 0.35 0.74
------- ------- ------- ------- -------
Distributions
Net investment income..... (0.53) (0.54) (0.58) (0.57) (0.59)
Net realized gains from
investments.............. (0.01) (0.07) (0.02) (0.01) --
------- ------- ------- ------- -------
Total Distributions..... (0.54) (0.61) (0.60) (0.58) (0.59)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 9.71 $ 10.29 $ 10.30 $ 9.91 $ 10.14
======= ======= ======= ======= =======
Total return (excludes
sales charge).......... (0.40%) 6.00% 10.21% 3.51% 7.48%
Ratios/Supplementary Data:
Net Assets, End of Period
(000).................... $24,336 $28,839 $26,332 $34,158 $34,390
Ratio of expenses to
average net assets....... 1.01% 0.91% 0.97% 1.02% 1.07%
Ratio of net investment
income to
average net assets....... 5.29% 5.21% 5.47% 5.64% 5.82%
Ratio of expenses to
average net assets (*)... 1.60% 1.49% 1.42% 1.47% 1.55%
Portfolio Turnover........ 42.12% 17.18% 61.25% 78.95% 30.85%
</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.
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 Year
Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31,
2000 1999 1998 1997 1996
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period......... $ 19.70 $ 19.81 $ 14.80 $ 12.95 $ 10.83
------- ------- ------- ------- -------
Investment Activities
Net investment income...... 0.02 0.07 0.10 0.13 0.10
Net realized and unrealized
gains/(losses) from
investments............... 2.63 2.32 5.41 2.11 2.70
------- ------- ------- ------- -------
Total from Investment
Activities.............. 2.65 2.39 5.51 2.24 2.80
------- ------- ------- ------- -------
Distributions
Net investment income...... (0.02) (0.07) (0.10) (0.13) (0.10)
Net realized gains from
investments............... (2.60) (2.43) (0.40) (0.19) (0.58)
In excess of net realized
gains from investments.... -- -- -- (0.07) --
------- ------- ------- ------- -------
Total Distributions...... (2.62) (2.50) (0.50) (0.39) (0.68)
------- ------- ------- ------- -------
Net Asset Value, End of
Period....................... $ 19.73 $ 19.70 $ 19.81 $ 14.80 $ 12.95
======= ======= ======= ======= =======
Total return (excludes
sales charges).......... 14.40% 13.40% 37.59% 17.44% 26.13%
Ratios/Supplementary Data:
Net Assets, End of Period
(000)..................... $56,467 $61,917 $56,948 $41,727 $32,353
Ratio of expenses to
average net assets........ 1.20% 1.20% 1.20% 1.28% 1.45%
Ratio of net investment
income to average net
assets.................... 0.10% 0.36% 0.57% 0.88% 0.83%
Ratio of expenses to
average net assets (*).... 1.66% 1.65% 1.65% 1.73% 1.92%
Portfolio Turnover......... 8.60% 24.28% 33.20% 17.15% 43.80%
</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.
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
5/00
[LOGO OF
BRENTON
MUTUAL FUNDS]
[LOGO OF
BRENTON BANK
INVESTMENT ADVISER]
ANNUAL REPORT
TO
SHAREHOLDERS
March 31, 2000
This material must be
preceded or
accompanied by a current
prospectus.
