<PAGE>
Shareholder Letter Brenton Mutual Funds
-------------------------------------------------------------------------------
Dear Shareholders:
One of the more interesting propositions the science of philosophy has focused
on is whether two opposing theories can be true at the same time. This
predicament is commonly referred to as a paradox. The investment paradox we
face today is if the U.S. domestic economy can continue its strong Gross
Domestic Product (GDP) growth in excess of 4% with inflation remaining benign.
Past assumption was that low unemployment is caused by strong economic growth,
which causes the cost of labor to go up and therefore puts pressure on prices,
causing inflation to increase. Recent evidence shows second quarter GDP to
continue strong at 5.6% yet inflation remains at a relatively contained 2.6%
as expressed by core Consumer Price Index measures. The Federal Reserve ("the
Fed") has tried to slow inflation by raising the Fed Funds rate enough to slow
but not stop economic growth; this is classically referred to as a soft
landing. The extreme volatility (price changes) in the equity markets
indicates investors are not sure this can be accomplished and fear either a
recession or a rise in inflation. The Fed has been on hold for the last two
months pending the election and more economic news. All investors are paying
close attention.
Our last letter warned investors of this possibility and for investors to pay
more attention to risk. The past quarter has reflected this concern, as
markets have been quite volatile. Equity returns are negative on a year to
date basis. With only one quarter to go in the year, this could be the first
time in five years equity returns are flat on a year over year basis. Staid
old utilities have been the best performing sector in the stock market,
followed by energy stocks and cash. What is an investor to do?
Market timing is a dangerous occupation, so we believe to stay invested in
those companies with more visible and predictable earnings growth whose stock
price is more rationally valued. These include many old economy companies in
the consumer staple, healthcare and financial sectors with selected holdings
in more modestly valued technology suppliers. We expect a shift to more
moderate growth by the U.S. economy with a corresponding slowdown in earnings,
better safe than sorry at this point in the cycle.
Value Equity Fund
The Brenton Value Equity Fund has a one-year return of 13.23%/2/ (without
load) as of September 30, 2000 versus the Standard and Poor's 500 Index/1/ of
13.28%. The annualized three-year return of 13.38%/2/ (without load) and
annualized five-year return of 17.97%/2/ (without load) trail the Standard and
Poor's 500 Index returns of 16.44% and 21.69%, respectively. The market is
currently working through a phase of consolidation where the gap between the
performance of growth stocks and value stocks is narrowing, this has helped us
regain lost ground versus the benchmark.
There are several factors affecting investor sentiment in today's market. The
uncertainty in the upcoming elections is causing caution to be exercised in
certain industries based on each party's perceived attitude toward that arena.
Slowing corporate profits appear to be hitting some of the markets previous
favorites that have inspired widespread caution among many names in the
technology area. The final concern of this writer is how long the reported
productivity gains will continue before we finally are hit by greater wage
pressure from the current full employment situation.
Intermediate U.S. Government Securities Fund
The recent increases in energy prices along with currency uncertainties caused
increased demand for short maturity securities. The result was the Treasury
yield curve started to disinvert and become flat again. The combination of
heavy issuance of debt in August
-------------------------------------------------------------------------------
1
<PAGE>
Shareholder Letter Brenton Mutual Funds
--------------------------------------------------------------------------------
($50 to $60 billion range), energy prices flashing higher, and mixed third
quarter corporate earnings prerelease's would normally cause expectations about
the spread sector (agencies and corporates) to be that of underperformance.
However, the Treasury curve reacted to these developments much quicker than the
spread sector curves. The result was that spreads narrowed consummating in
outperformance by this sector. This positively impacted the Brenton
Intermediate U.S. Government Securities Fund.
The economy clearly decelerated during the third quarter. Most market
participants have concluded based on this economic slowdown combined with the
election season that the Federal Reserve is done tightening for the year. As a
result, the spread between the 10-year and 30-year Treasury has reverted to a
positive spread for the first time since January 17, 2000. As a consequence, we
will continue to take advantage of the generous yield pickup on agencies,
certain mortgage products, and high quality corporates. It is likely that the
spreads to Treasuries of each of these sectors will continue to narrow, which
will produce strong performance for the Fund.
U.S. Government Money Market Fund/3/
The Federal Reserve raised the Federal Funds rate 0.5% to 6.5% since March 31,
2000. It appears that the Fed is done tightening through at least year-end and
perhaps for this cycle. That is, as long as growth continues to moderate at or
below the non-inflationary level of 3.0%. 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/ Matt J. Schmitt
Matt J. Schmitt
Assistant Vice President/Portfolio Manager
Brenton Investments, Inc.
/1/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.
/2/The average annual total returns for the Fund with a load of 4.50% are
8.11%, 11.66%, and 16.89% for the 1-year, 5-year and since inception.
/3/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.
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.
--------------------------------------------------------------------------------
2
<PAGE>
Table of Contents
Statements of Assets and Liabilities
Page 4
Statements of Operations
Page 5
Statements of Changes in Net Assets
Page 6
Schedules of Portfolio Investments
Page 8
Notes to Financial Statements
Page 12
Financial Highlights
Page 16
3
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Assets and Liabilities
September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Intermediate
U.S. Government U.S. Government Value
Money Market Securities Equity
Fund Fund Fund
--------------- --------------- -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost
$45,048,798; $22,626,038;
$29,388,800, respectively)......... $45,048,798 $22,501,791 $53,500,439
Cash................................ 849 -- --
Interest and dividends receivable... -- 508,301 30,802
Prepaid expenses and other assets... 5,758 2,534 4,278
----------- ----------- -----------
Total Assets.................... 45,055,405 23,012,626 53,535,519
----------- ----------- -----------
LIABILITIES:
Dividends payable................... 207,115 -- --
Accrued expenses and other payables:
Investment advisory fees.......... 9,678 9,364 29,814
Administration fees............... 1,099 376 1,755
Distribution and shareholder
service fees..................... 2,198 -- 2,245
Other fees........................ 30,098 25,574 974
----------- ----------- -----------
Total Liabilities............... 250,188 35,314 34,788
----------- ----------- -----------
Total Net Assets................ $44,805,217 $22,977,312 $53,500,731
=========== =========== ===========
NET ASSETS:
Capital............................. $44,806,752 $23,523,145 $28,404,317
Undistributed (distribution in
excess of) net investment
income/(loss)....................... -- 8,823 (33,894)
Accumulated undistributed
(distribution in excess of) net
realized gains/(losses) from
investment transactions............ (1,535) (430,409) 1,018,669
Net unrealized
appreciation/(depreciation) from
investments......................... -- (124,247) 24,111,639
----------- ----------- -----------
Net Assets...................... $44,805,217 $22,977,312 $53,500,731
=========== =========== ===========
Single Class or Class M Shares
Net Assets.......................... $36,987,819 $22,977,312 $53,500,731
Outstanding units of beneficial
interest (shares)................... 36,989,225 2,324,563 2,741,724
----------- ----------- -----------
Net asset value--redemption price
per share........................... $ 1.00 $ 9.88 $ 19.51
=========== =========== ===========
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) $ 10.24 $ 20.43
=========== =========== ===========
Class S Shares
Net Assets.......................... $ 7,817,398
Outstanding units of beneficial
interest (shares)................... 7,817,567
===========
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.
4
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Operations
For the Period Ended September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Intermediate
U.S. Government U.S. Government
Money Market Securities Value Equity
Fund Fund Fund
--------------- --------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................... $1,404,328 $ 750,522 $ --
Dividend income..................... -- 1,240 282,822
---------- ---------- -----------
Total income...................... 1,404,328 751,762 282,822
---------- ---------- -----------
EXPENSES:
Investment advisory fees............ 88,893 57,823 180,552
Administration fees................. 44,447 23,129 54,351
Distribution and shareholder service
fees--
Single Class or Class M............ 92,609 57,823 135,877
Distribution and shareholder service
fees--Class S....................... 27,761 -- --
Custodian fees...................... 5,773 2,045 4,491
Fund accounting fees................ 15,557 10,138 12,091
Transfer agent fees................. 36,730 8,646 21,783
Trustees' fees...................... 2,017 1,329 2,866
Other............................... 38,593 24,755 25,492
---------- ---------- -----------
Total Expenses.................... 352,380 185,688 437,503
Less: Fee waivers................... (149,635) (69,387) (123,145)
---------- ---------- -----------
Net Expenses...................... 202,745 116,301 314,358
---------- ---------- -----------
Net Investment Income/(Loss)........ 1,201,583 635,461 (31,536)
---------- ---------- -----------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains/(losses) from
investment transactions............. -- (36,456) 1,152,017
Net change in unrealized
appreciation/(depreciation) from
investments........................ -- 446,751 (1,744,178)
---------- ---------- -----------
Net realized/unrealized
gains/(losses) from investments..... -- 410,295 (592,161)
---------- ---------- -----------
Change in net assets resulting from
operations.......................... $1,201,583 $1,045,756 $ (623,697)
========== ========== ===========
</TABLE>
See notes to financial statements.
5
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
----------------------------
Period Ended Year Ended
September 30, March 31,
2000 2000
------------- -------------
(Unaudited)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................ $ 1,201,583 $ 2,147,884
Net realized gains/(losses) from investment
transactions..................................... -- (1,177)
------------ -------------
Change in net assets resulting from operations.... 1,201,583 2,146,707
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class M......................................... (1,008,435) (1,741,067)
Class S......................................... (193,148) (406,817)
------------ -------------
Change in net assets from shareholder
distributions..................................... (1,201,583) (2,147,884)
------------ -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued
Class M......................................... 33,832,322 103,312,420
Class S......................................... 10,029,458 24,846,609
Dividends reinvested
Class M......................................... 208,312 378,310
Class S......................................... 188,979 408,354
Cost of shares redeemed
Class M......................................... (37,006,961) (102,132,997)
Class S......................................... (9,931,210) (27,794,132)
------------ -------------
Change in net assets from capital share
transactions...................................... (2,679,100) (981,436)
------------ -------------
Change in net assets.............................. (2,679,100) (982,613)
NET ASSETS:
Beginning of period.............................. 47,484,317 48,466,930
------------ -------------
End of period.................................... $ 44,805,217 $ 47,484,317
============ =============
SHARE TRANSACTIONS:
Issued
Class M......................................... 33,832,322 103,312,774
Class S......................................... 10,029,458 24,846,609
Reinvested
Class M......................................... 208,312 378,310
Class S......................................... 188,979 408,354
Redeemed
Class M......................................... (37,006,961) (102,132,997)
Class S......................................... (9,931,210) (27,794,132)
------------ -------------
Change in shares.................................. (2,679,100) (981,082)
============ =============
</TABLE>
See notes to financial statements.
6
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Intermediate U.S.
Government
Securities Fund Value Equity Fund
------------------------ -------------------------
Period Period
Ended Ended
September Year Ended September Year Ended
30, March 31, 30, March 31,
2000 2000 2000 2000
----------- ----------- ----------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment
income/(loss)............ $ 635,461 $ 1,366,197 $ (31,536) $ 59,178
Net realized
gains/(losses) from
investment transactions. (36,456) (393,284) 1,152,017 3,613,453
Net change in unrealized
appreciation/
(depreciation) from
investments............. 446,751 (1,095,636) (1,744,178) 4,112,620
----------- ----------- ----------- ------------
Change in net assets
resulting from operations. 1,045,756 (122,723) (623,697) 7,785,251
----------- ----------- ----------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................... (636,697) (1,378,292) (4,549) (61,667)
Dividends to shareholders
from net realized gains
from investment
transactions............ -- (11,736) -- (6,926,213)
----------- ----------- ----------- ------------
Change in net assets from
shareholder distributions. (636,697) (1,390,028) (4,549) (6,987,880)
----------- ----------- ----------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 1,070,819 4,068,954 2,275,496 7,084,184
Dividends reinvested..... 276,800 688,260 3,288 4,992,293
Cost of shares redeemed.. (3,115,065) (7,747,788) (4,616,976) (18,324,114)
----------- ----------- ----------- ------------
Change in net assets from
capital share
transactions.............. (1,767,446) (2,990,574) (2,338,192) (6,247,637)
----------- ----------- ----------- ------------
Change in net assets...... (1,358,387) (4,503,325) (2,966,438) (5,450,266)
NET ASSETS:
Beginning of period...... 24,335,699 28,839,024 56,467,169 61,917,435
----------- ----------- ----------- ------------
End of period............ $22,977,312 $24,335,699 $53,500,731 $ 56,467,169
=========== =========== =========== ============
SHARE TRANSACTIONS:
Issued................... 109,787 410,027 117,580 356,714
Reinvested............... 28,457 69,214 172 270,215
Redeemed................. (319,828) (775,926) (238,005) (908,310)
----------- ----------- ----------- ------------
Change in shares.......... (181,584) (296,685) (120,253) (281,381)
=========== =========== =========== ============
</TABLE>
See notes to financial statements.
7
<PAGE>
THE COVENTRY GROUP
BRENTON U.S. GOVERNMENT MONEY MARKET FUND
Schedule of Portfolio Investments
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
----------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. Government Agencies (100.5%):
Federal Farm Credit Bank (8.9%):
$ 4,000,000 6.395%,* 10/16/00.................................... $ 3,989,317
-----------
Federal Home Loan Bank (91.6%):
5,342,000 6.28%,* 10/02/00..................................... 5,341,068
7,000,000 6.42%,* 10/06/00..................................... 6,993,758
6,000,000 6.38%,* 10/13/00..................................... 5,987,240
5,067,000 5.95%,* 11/02/00..................................... 5,040,201
18,000,000 6.37%,* 01/04/01..................................... 17,697,214
-----------
41,059,481
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
----------- ----------------------------------------------------- -----------
<C> <S> <C>
Total U.S. Government Agencies $45,048,798
-----------
Total Investments (Amortized
Cost $45,048,798)(a)--100.5% 45,048,798
Liabilities in excess of other assets--(0.5)% (243,581)
-----------
TOTAL NET ASSETS--100.0% $44,805,217
===========
</TABLE>
--------
Percentages indicated are based on net assets of $44,805,217.
*Effective yield at date of purchase.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
8
<PAGE>
THE COVENTRY GROUP
BRENTON INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
Schedule of Portfolio Investments
September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Corporate Bonds (8.4%):
Financial Services (8.4%):
$ 800,000 Abbey National First Capital, 8.20%, 10/15/04......... $ 832,000
1,000,000 General Electric Capital, 8.625%, 06/15/08............ 1,095,000
-----------
Total Corporate Bonds 1,927,000
-----------
U.S. Government Agencies (65.6%):
Fannie Mae (10.5%):
370,329 6.50%, 03/01/09....................................... 366,163
1,293,112 7.50%, 11/01/17....................................... 1,300,379
734,040 7.50%, 12/01/25....................................... 735,413
-----------
2,401,955
-----------
Federal Home Loan Bank (51.7%):
3,000,000 5.69%, 04/15/03....................................... 2,943,000
1,000,000 6.89%, 04/06/04....................................... 1,011,140
2,000,000 5.515%, 04/13/04...................................... 1,936,840
1,000,000 7.36%, 07/01/04....................................... 1,026,940
1,000,000 7.32%, 04/21/05....................................... 1,029,330
3,000,000 6.32%, 06/28/05....................................... 2,965,590
1,000,000 6.15%, 11/28/05....................................... 980,950
-----------
11,893,790
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Government Agencies, continued:
Freddie Mac (2.3%):
$ 530,307 6.50%, 07/01/08....................................... $ 522,517
-----------
Ginnie Mae (1.1%):
255,650 7.00%, 05/01/10....................................... 255,248
-----------
Total U.S. Government Agencies 15,073,510
-----------
U.S. Treasury Notes (23.3%):
3,300,000 5.88%, 09/30/02....................................... 3,291,750
2,000,000 6.75%, 05/15/05....................................... 2,071,860
-----------
Total U.S. Treasury Notes 5,363,610
-----------
Investment Companies (0.6%):
137,671 Goldman Federal Money Market Portfolio................ 137,671
-----------
Total Investment Companies 137,671
-----------
Total Investments (Cost
$22,626,038)(a)--97.9% 22,501,791
Other assets in excess of liabilities--2.1% 475,521
-----------
TOTAL NET ASSETS--100.0% $22,977,312
===========
</TABLE>
--------
Percentages indicated are based on net assets of $22,977,312.
(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... $ 121,582
Unrealized depreciation... (245,829)
---------
Net unrealized
depreciation.............. $(124,247)
=========
</TABLE>
See notes to financial statements.
9
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments
September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (98.9%):
Aerospace/Defense (1.5%):
21,000 General Motors Corp.--Class H (b).......................... $ 780,780
-----------
Banks (6.0%):
15,276 Bank of America Corp....................................... 800,080
15,000 Chase Manhattan Corp....................................... 692,813
15,000 First Union Corp........................................... 482,813
27,000 Wells Fargo Co............................................. 1,240,312
-----------
3,216,018
-----------
Beverages--Non-alcoholic (2.4%):
9,200 Coca-Cola Co............................................... 507,150
16,700 PepsiCo, Inc............................................... 768,200
-----------
1,275,350
-----------
Beverages--Wines & Spirits (1.6%):
20,000 Anheuser-Busch Cos., Inc................................... 846,250
-----------
Capital Equipment (1.0%):
10,000 Illinois Tool Works, Inc................................... 558,750
-----------
Chemicals--Diversified (0.4%):
5,019 Du Pont (E.I.) de Nemours & Co............................. 207,975
-----------
Computer Software (8.4%):
10,000 America Online, Inc. (b)................................... 537,500
28,000 Cisco Systems, Inc. (b).................................... 1,546,999
8,000 Dell Computer Corp. (b).................................... 246,500
7,000 Electronic Data Systems Corp............................... 290,500
6,500 Hewlett-Packard Co......................................... 630,500
20,000 Microsoft Corp. (b)........................................ 1,205,000
-----------
4,456,999
-----------
Computers (5.6%):
18,000 EMC Corp. (b).............................................. 1,784,250
11,000 International Business Machines Corp....................... 1,237,500
-----------
3,021,750
-----------
Cosmetics/Personal Care (0.5%):
8,000 Gillette Co................................................ 247,000
-----------
Diversified Operations (5.7%):
40,000 General Electric Co........................................ 2,307,500
8,100 Minnesota Mining & Manufacturing Co........................ 738,113
-----------
3,045,613
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Electrical Equipment (3.4%):
6,000 Emerson Electric Co........................................ $ 402,000
27,000 Tyco International Ltd..................................... 1,400,625
-----------
1,802,625
-----------
Electronic Components (3.8%):
2,479 Agilent Technologies, Inc. (b)............................. 121,316
30,000 Intel Corp................................................. 1,248,750
24,000 Motorola, Inc.............................................. 678,000
-----------
2,048,066
-----------
Electronic Components--Semiconductors (2.9%):
18,000 Xilinx, Inc. (b)........................................... 1,541,250
-----------
Financial Services (8.2%):
33,333 Citigroup, Inc............................................. 1,802,064
12,000 MGIC Investment Corp....................................... 733,500
16,000 Morgan Stanley, Dean Witter & Co........................... 1,463,000
10,000 Washington Mutual, Inc..................................... 398,125
-----------
4,396,689
-----------
Health Care--Drugs (3.4%):
19,000 Bristol-Myers Squibb Co.................................... 1,085,375
10,000 Merck & Co., Inc........................................... 744,375
-----------
1,829,750
-----------
Health Care--General Products (2.1%):
12,000 Johnson & Johnson.......................................... 1,127,250
-----------
Household--General Products (1.6%):
10,000 Newell Rubbermaid, Inc..................................... 228,125
9,000 Procter & Gamble Co........................................ 603,000
-----------
831,125
-----------
Insurance (2.0%):
11,250 American International Group, Inc.......................... 1,076,484
-----------
Medical Instruments (1.5%):
15,000 Medtronic, Inc............................................. 777,188
-----------
Medical--Wholesale Drug Distribution (1.7%):
20,000 Pfizer, Inc................................................ 898,750
-----------
Motor Vehicles (0.9%):
7,000 General Motors Corp........................................ 455,000
-----------
Multimedia (1.0%):
7,000 Time Warner, Inc........................................... 547,750
-----------
</TABLE>
Continued
10
<PAGE>
THE COVENTRY GROUP
BRENTON VALUE EQUITY FUND
Schedule of Portfolio Investments, Continued
September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Office Supplies, Automation & Equipment (1.4%):
8,000 Avery Dennison Corp........................................ $ 371,000
10,000 Pitney Bowes, Inc.......................................... 394,375
-----------
765,375
-----------
Oil Companies--Integrated (3.8%):
10,000 BP Amoco Co., PLC.......................................... 530,000
17,000 Exxon Mobil Corp........................................... 1,515,125
-----------
2,045,125
-----------
Oil Field Services (2.1%):
10,563 Conoco, Inc.--Class B...................................... 284,541
10,000 Schlumberger Ltd........................................... 823,125
-----------
1,107,666
-----------
Paper & Related Products (3.1%):
15,000 CVS Corp................................................... 694,687
9,000 Kimberly-Clark Corp........................................ 502,313
10,000 Lowe's Cos., Inc........................................... 448,750
-----------
1,645,750
-----------
Pharmaceuticals (0.8%):
9,000 Schering-Plough Corp....................................... 418,500
-----------
Pipelines (1.7%):
15,000 El Paso Energy Corp........................................ 924,375
-----------
Restaurants (0.6%):
10,000 McDonald's Corp............................................ 301,875
-----------
Retail--Convenience Stores (0.9%):
35,000 Casey's General Stores, Inc................................ 455,000
-----------
Retail--General Merchandise (1.8%):
20,000 Wal-Mart Stores, Inc....................................... 962,500
-----------
Retail--Specialty Stores (1.6%):
16,500 Home Depot, Inc............................................ 875,531
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Steel (0.3%):
6,000 Nucor Corp............................................... $ 180,750
-----------
Telecommunications (2.7%):
14,640 Verizon Communications................................... 709,125
25,000 WorldCom, Inc. (b)....................................... 759,375
-----------
1,468,500
-----------
Telecommunications Equipment (0.7%):
13,000 Lucent Technologies, Inc................................. 397,313
-----------
Utilities--Electric (3.8%):
30,000 AES Corp. (b)............................................ 2,055,000
-----------
Utilities--Telephone (2.4%):
15,000 AT&T Corp................................................ 440,625
17,000 SBC Communications, Inc.................................. 850,000
-----------
1,290,625
-----------
Wholesale (4.2%):
25,000 Arrow Electronics, Inc. (b).............................. 851,563
30,000 Sysco Corp............................................... 1,389,375
-----------
2,240,938
-----------
Wholesale & International Trade (1.4%):
22,000 Costco Wholesale Corp. (b)............................... 768,625
-----------
Total Common Stocks 52,891,860
-----------
Investment Companies (1.1%):
608,579 Goldman Federal Money Market Portfolio................... 608,579
-----------
Total Investment Companies 608,579
-----------
Total Investments (Cost $29,388,800)(a)--100.0% 53,500,439
Other assets in excess of liabilities--0.0% 292
-----------
TOTAL NET ASSETS--100.0% $53,500,731
===========
</TABLE>
------
Percentages indicated are based on net assets of $53,500,731.
(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... $24,693,117
Unrealized depreciation... (581,478)
-----------
Net unrealized apprecia-
tion...................... $24,111,639
===========
</TABLE>
(b)Represents non-income producing securities.
See notes to financial statements.
11
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements
September 30, 2000
(Unaudited)
1. Organization:
The Coventry Group (the "Group") was organized on January 8, 1992 as a
Massachusetts business trust, and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Brenton U.S. Government Money Market Fund
("U.S. Government Money Market Fund"), Brenton Intermediate U.S. Government
Securities Fund ("Intermediate U.S. Government Securities Fund"), and
Brenton Value Equity Fund ("Value Equity Fund") (collectively, the "Funds"
and individually, a "Fund") are a series within the Group.
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.
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
Continued
12
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
September 30, 2000
(Unaudited)
market values determined on the basis of the current 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 expiring capital loss
carryforwards 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 September 30, 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>
Continued
13
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
September 30, 2000
(Unaudited)
Expenses:
Expenses that are directly related to one of the Funds are charged
directly to that Fund. Expenses relating to the Funds collectively are
prorated to the Funds on the basis of each Fund's relative net assets.
Other expenses for the Group are prorated to the Funds and any other
portfolios of the Group on the basis of relative net assets.
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
period ended September 30, 2000 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
---------- ----------
<S> <C> <C>
Intermediate U.S. Government Securities Fund........... $2,037,813 $3,650,801
Value Equity Fund...................................... 235,283 2,910,496
</TABLE>
4. Related Party Transactions:
Investment advisory services are provided to the Funds by Brenton Bank.
Under the terms of the investment advisory agreement, Brenton Bank is
entitled to receive fees computed daily and paid monthly based on a
percentage of the average net assets of each Fund, 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.
BISYS Fund Services Ohio, Inc. ("BISYS Ohio"), who serves the Group as
Administrator, is a wholly owned subsidiary of the BISYS Group, Inc., with
whom certain officers and trustees of the Group are also officers of the
Administrator. Such officers are paid no fees directly by the Funds for
serving as officers of the Group. Under the terms of the administration
agreement, BISYS Ohio receives an annual fee, computed daily and paid
monthly, based on the average daily net assets of each Fund, at the annual
rate of 0.20%.
BISYS Ohio serves the Funds as Transfer Agent. Under the terms of the
Transfer Agency Agreement, BISYS Ohio receives a fee based on the number of
shareholders on record. BISYS Ohio provides fund accounting services to the
Funds pursuant to the Fund Accounting Agreement.
BISYS Fund Services Limited Partnership ("BISYS"), a wholly owned subsidiary
of The BISYS Group, Inc., serves the Group as the Funds' distribution agent.
The Funds have adopted a Distribution and Shareholder Services Plan in
accordance with Rule 12b-1 under the Investment Company Act of 1940,
pursuant to which the Funds (excluding Class S shares of U.S. Government
Money Market Fund) are authorized to pay or
Continued
14
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Notes to Financial Statements, Continued
September 30, 2000
(Unaudited)
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 period ended September 30, 2000, BISYS received $2,763 from
commissions earned on sales of shares of the Fund, of which $2,265 was
reallowed to broker/dealers affiliated with Brenton Bank.
Brenton Bank serves as Custodian ("the Custodian") to the Funds pursuant to
the Custodian Agreement. For custodial services, each of the Funds pays the
Custodian an annual asset-based fee plus fixed fees charged for certain
portfolio transactions and out-of-pocket expenses.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the period ended September 30, 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....... $31,112 $ -- $ --
Administration Fees:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)....................... 0.20% 0.20% 0.20%
Voluntary fee reductions....... $11,111 $11,564 $ --
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....... $88,905 $57,823 $123,145
12b-1 Fees--Class S
Annual fee before voluntary fee
reductions
(percentage of average net
assets)....................... 0.75%
Voluntary fee reductions....... $18,507
</TABLE>
15
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
-----------------------------------
Class S
-----------------------------------
Six Months Year October 8,
Ended Ended 1998 to
September 30, March 31, March 31,
2000 2000 1999(a)
------------- --------- ----------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period..... $ 1.000 $ 1.000 $ 1.000
------- ------- -------
Investment Activities
Net investment income.................. 0.026 0.041 0.020
------- ------- -------
Total from Investment Activities..... 0.026 0.041 0.020
------- ------- -------
Distributions
Net investment income.................. (0.026) (0.041) (0.020)
------- ------- -------
Total Distributions.................. (0.026) (0.041) (0.020)
------- ------- -------
Net Asset Value, End of period........... $ 1.000 $ 1.000 $ 1.000
======= ======= =======
Total return......................... 2.64%(b) 4.23% 1.89%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)........ $ 7,817 $ 7,530 $10,070
Ratio of expenses to average net
assets................................ 1.10%(c) 1.17% 1.11%(c)
Ratio of net investment income to
average net assets.................... 5.20%(c) 4.11% 3.94%(c)
Ratio of expenses to average net assets
(*)................................... 1.79%(c) 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.
16
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
----------------------------------------------------------------
Class M
----------------------------------------------------------------
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
September 30, March 31, March 31, March 31, March 31, March 31,
2000 2000 1999 1998 1997 1996
------------- --------- --------- --------- --------- ---------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income. 0.027 0.044 0.045 0.048 0.046 0.050
------- ------- ------- ------- ------- -------
Total from
Investment
Activities......... 0.027 0.044 0.045 0.048 0.046 0.050
------- ------- ------- ------- ------- -------
Distributions
Net investment income. (0.027) (0.044) (0.045) (0.048) (0.046) (0.050)
------- ------- ------- ------- ------- -------
Total Distributions. (0.027) (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 $ 1.000
======= ======= ======= ======= ======= =======
Total return........ 2.76%(a) 4.47% 4.58% 4.96% 4.67% 5.12%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)......... $36,988 $39,954 $38,397 $42,061 $34,796 $35,436
Ratio of expenses to
average net assets... 0.87%(b) 0.93% 0.81% 0.72% 0.77% 0.75%
Ratio of net
investment income to
average net assets... 5.43%(b) 4.39% 4.47% 4.86% 4.57% 4.99%
Ratio of expenses to
average net assets
(*).................. 1.54%(b) 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.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
17
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Intermediate U.S. Government
Securities Fund
-----------------------------------------------------------------
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
September 30, March 31, March 31, March 31, March 31, March 31,
2000 2000 1999 1998 1997 1996
------------- --------- --------- --------- --------- ---------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.71 $ 10.29 $ 10.30 $ 9.91 $ 10.14 $ 9.99
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income. 0.27 0.53 0.54 0.59 0.57 0.59
Net realized and
unrealized
gains/(losses) from
investments.......... 0.17 (0.57) 0.06 0.40 (0.22) 0.15
------- ------- ------- ------- ------- -------
Total from
Investment
Activities......... 0.44 (0.04) 0.60 0.99 0.35 0.74
------- ------- ------- ------- ------- -------
Distributions
Net investment income. (0.27) (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. (0.27) (0.54) (0.61) (0.60) (0.58) (0.59)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 9.88 $ 9.71 $ 10.29 $ 10.30 $ 9.91 $ 10.14
======= ======= ======= ======= ======= =======
Total return
(excludes sales
charge)............ 4.61%(a) (0.40)% 6.00% 10.21% 3.51% 7.48%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)......... $22,977 $24,336 $28,839 $26,332 $34,158 $34,390
Ratio of expenses to
average net assets... 1.00%(b) 1.01% 0.91% 0.97% 1.02% 1.07%
Ratio of net
investment income to
average net assets... 5.48%(b) 5.29% 5.21% 5.47% 5.64% 5.82%
Ratio of expenses to
average net assets
(*).................. 1.60%(b) 1.60% 1.49% 1.42% 1.47% 1.55%
Portfolio Turnover.... 8.93% 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.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
18
<PAGE>
THE COVENTRY GROUP
BRENTON MUTUAL FUNDS
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Value Equity Fund
-----------------------------------------------------------------
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
September 30, March 31, March 31, March 31, March 31, March 31,
2000 2000 1999 1998 1997 1996
------------- --------- --------- --------- --------- ---------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 19.73 $ 19.70 $ 19.81 $ 14.80 $ 12.95 $ 10.83
------- ------- ------- ------- ------- -------
Investment Activities
Net investment
income/(loss)........ (0.01) 0.02 0.07 0.10 0.13 0.10
Net realized and
unrealized
gains/(losses) from
investments.......... (0.21) 2.63 2.32 5.41 2.11 2.70
------- ------- ------- ------- ------- -------
Total from
Investment
Activities......... (0.22) 2.65 2.39 5.51 2.24 2.80
------- ------- ------- ------- ------- -------
Distributions
Net investment income. --(a) (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.................. $ 19.51 $ 19.73 $ 19.70 $ 19.81 $ 14.80 $ 12.95
======= ======= ======= ======= ======= =======
Total return
(excludes sales
charges)........... (1.11)%(b) 14.40% 13.40% 37.59% 17.44% 26.13%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)......... $53,501 $56,467 $61,917 $56,948 $41,727 $32,353
Ratio of expenses to
average net assets... 1.15%(c) 1.20% 1.20% 1.20% 1.28% 1.45%
Ratio of net
investment
income/(loss) to
average net assets... (0.12)%(c) 0.10% 0.36% 0.57% 0.88% 0.83%
Ratio of expenses to
average net assets
(*).................. 1.61%(c) 1.66% 1.65% 1.65% 1.73% 1.92%
Portfolio Turnover.... 0.44% 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.
(a) Distribution per share was less than $0.005.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
19
<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
1100 Huntington Center
41 South High Street
Columbus, Ohio 43215
11/00
[LOGO OF
BRENTON
MUTUAL FUNDS]
[LOGO OF
BRENTON BANK
INVESTMENT ADVISER]
SEMI-ANNUAL REPORT
TO
SHAREHOLDERS
September 30, 2000
This material must be preceded
or
accompanied by a current
prospectus.
