<PAGE>
SEMIANNUAL REPORT
JUNE 30, 1996
Not FDIC Insured
<PAGE>
MESSAGE FROM YOUR INVESTMENT ADVISER
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
Dear Fellow Contractholders:
If there's a lesson to be learned as we approach the second half of 1996, it is
"don't believe everything you read in the papers." Over the past several months,
none of the negatives that affected growth in 1995, such as severe weather,
government layoffs, and strikes, were present. Housing, vehicle sales, and
employment growth all increased. As a result, when the preliminary estimate of
economic growth for the second quarter was released in August, it was a whopper
as we expected--4.2%--far above the 2.5% the Federal Reserve considers
non-inflationary.
Just as weak economic growth in the fourth quarter of 1995 prompted the media to
predict an imminent recession earlier in the year, these new statistics are sure
to produce a flurry of reports, articles, and analysis on our "runaway
economy"--and, of course, how it threatens to accelerate inflation.
THE FAT LADY IS WARMING UP IN THE WINGS . . .
While growth statistics are bound to be very impressive, we believe that our
economy is not preparing to shift gears and suddenly move into the fast lane. We
expect growth to drop off in the second half of the year, and, contrary to
popular opinion, there is ample reason to believe that this slowdown will not be
entirely due to any action on the part of the Federal Reserve.
We have now caught up with backlogs and other distortions which have existed in
the economy over the last nine months. Tax refunds have been spent. Inventories
have been replaced. Consumers are somewhat overextended and interest rates are
rising. In short, we feel that the peak of the economic growth cycle is upon us
now, and it is very unlikely that the current rate of growth can be sustained
much longer. It is even less likely that we will see higher levels of activity
in the remainder of the year.
If however we are wrong, and for some unforeseen reason, growth remains in the
range of 4%, we would expect to see signs of increasing inflation--which would
very likely cause the Federal Reserve to raise interest rates quickly and
significantly, thus slowing the economy. Indeed, while the Federal Reserve did
not raise interest rates at their Open Market Committee meeting in early July,
Chairman Greenspan could initiate such a move at or before the next FOMC meeting
scheduled for August 20.
A LITTLE SQUEEZE OR A BIG FREEZE?
Consequently, it is clear that--despite what you may read in the papersour
economy is likely to decelerate rather than accelerate in the second half of the
year. The next question becomes: How much will it slow?
There are a number of factors that can influence immediate growth significantly.
For instance, if corporations continue their downsizing efforts to maintain
profit margins--as corporate profit growth declines on an overall basis the
results could have a negative effect on the economy. Interest rates have risen
in recent months as well. If the impact of higher rates on the housing market,
is in fact greater than we have seen so far, this could also slow the economy.
Consequently, it is extremely difficult to predict how deep a drop-off may be,
or how long it will last.
CORRECTION-CREATED OPPORTUNITIES
What we do know is that increases in interest rates and declining corporate
profits make further gains in the stock market unlikely any time in the near
future. At best, over the next several months, we would expect to see stocks
trade in a neutral range. At worst, we may see a market correction of some 10%
or more. However, this worst-case scenario may be the best-case scenario for
stock investors. We believe that LONG TERM the prospects for stocks are very
positive--and a correction would be an exceptional buying opportunity.
The next several months should create opportunity in the bond markets as well.
We expect interest rates to continue trending downward well into the next
century. While it seems unlikely that long-term rates would rise to 8% or more
over the next several months, if this should happen, long-term fixed-income
investors may be well advised to take advantage of the situation--as higher
interest rates mean lower bond prices.
WHEN THE FAT LADY SINGS . . .
Consequently, while the road just ahead may be somewhat rocky for many
investors, we encourage our contractholders to continue to view both the stock
and bond markets with a long-term perspective. We believe the next six months
will prove to be a period of exceptional opportunity in the financial markets.
In fact, when and if the Fat Lady sings, we plan to stand up, cheer, and take
full advantage of the situation.
Sincerely,
Richard A. Wolf, CFA
PRESIDENT AND CHIEF INVESTMENT OFFICER
FIRST OF AMERICA INVESTMENT CORPORATION
1
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
PRIME OBLIGATIONS FUND
It was a roller-coaster year in the money markets. Throughout much of the second
half of 1995, investors anticipated that interest rates would go lower. Yet as
1996 began, reports of stronger-than-expected economic growth sparked
inflationary fears, and rates rose rapidly. Throughout the spring, as data
continued to reinforce the view that the economy was accelerating, investors
began to expect the Federal Reserve Board to increase rates to dampen
inflationary pressure. If past history is any guide however, the Federal Reserve
is more likely to move more slowly and cautiously than investors expect.
Nevertheless, we would not be surprised to see rates hiked before the end of the
year in an effort to slow the economy's growth. Given this expectation, we
continue to approach the markets very cautiously. Maturities have been pulled in
slightly in an effort to position the Funds to take advantage of the steepening
yield curve as interest rates move higher.
As of June 30, 1996, approximately 35% of the Fund's assets were invested in
overnight securities, and the Fund's average maturity was 55 days.
BOND FUND
Overall, the six months ended June 30, 1996, were frustrating ones for
fixed-income investors. As the new year opened, evidence that the economy was
stronger than anticipated began to appear. Always just beneath the surface, the
market's fears of inflation emerged, and repeatedly reinforced reports of
expanding growth and low unemployment, leading the bond markets to decline in
the first half of 1996.
Given the circumstances, we approached the markets very cautiously throughout
the period. Nevertheless, we feel our conservative approach served investors
well during the period. Performing as it was intended to do, the Fund weathered
the difficult climate of 1996.
Asset allocation was the key to the Fund's solid performance in the up-and-down
markets of the period. In the latter half of 1995, the Fund was underweighted in
mortgage-backed issues, which suffered from a severe case of "prepayment
jitters" in the low interest-rate environment, and overweighted in corporate
securities, which outperformed as corporate profits skyrocketed. Then in the
first half of 1996, we moved quickly to increase the Fund's exposure in
mortgage-backed securities, as rates rose and worries about prepayments
disappeared. Holdings in U.S. Treasury securities, which fell out of favor
rapidly, were decreased. However, the negative environment for fixed-income
securities in the period had a big impact on the Fund's performance, resulting
in a return of -2.10%, for the six months ended June 30, 1996. This is only
slightly lower than the Fund's industry benchmark the Salomon Brothers Broad
Index which reported a -1.26% return.
In the months ahead, we expect to see the mortgage-backed sector continue to
perform well. We believe that corporate securities remain fundamentally sound.
Nonetheless, profits are anticipated to drop off in the second half of the year.
While a decline should be gradual rather than drastic, after several years of
stunning earnings reports, the market may react dramatically. As a result,
security selection will be critical to success in the months ahead, and we will
focus closely on the quality and structure of all issues considered for
investment.
At the period's end, approximately, 30% of the Fund's assets were invested in
corporate bonds, 29% in mortgage-backed securities, and 30% in U.S. Treasury
securities. The average credit quality of the portfolio's holdings was AA.
2
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION, CONTINUED
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
EQUITY FUND
We are pleased to report that during the first half of the year the Fund's
transition to a "mid-cap" Fund--one emphasizing investment in companies with
capitalizations between $750 million and $5 billion--was successfully completed.
At the end of the period, the Fund was more widely diversified with investments
in more than 70 different companies. Moreover, while our holdings in the
technology sector decreased slightly, our investments in the financial and
consumer goods sectors were increased. Consequently, the fund was well
represented in three of the strongest-performing areas of the market during the
period.
IT WAS A VERY GOOD YEAR
Despite waves of anxiety that swept through the marketplace on the heels of each
bulletin on interest rates, inflation, and economic growth, the market continued
to reward companies exhibiting strong and predictable earnings growth. Focused
on such companies, the Fund benefited handsomely. In the consumer cyclical
sector, our holdings in Hospitality Franchise Systems, Inc. (a real estate
broker and franchiser of hotels), and Petsmart, Inc. (the largest operator of
pet supply stores in the U.S.), made substantial contributions to performance.
Among our computer software holdings, two companies were stand-out performers:
GT Interactive Software Corporation and McAfee Associates, Inc.
As a result, the Fund beat its benchmark handily for the period. We are very
pleased to report that for the six months ended June 30, 1996, the Fund posted a
total return of 13.75% versus a gain of 9.21% in the S&P 400 Mid-Cap Index over
the same period.
BRIGHT LONG-TERM PROSPECTS
While we are optimistic about the prospects for the market over the long term,
stock selection will be critical in the months ahead. With this in mind, we will
continue to seek out and invest in those companies with solid balance sheets and
the potential to be industry leaders over the long term.
As of June 30, 1996, the Fund's top five holdings were Hospitality and Franchise
Systems, Inc. (4.69%), Ceridian Corporation (2.64%), Service Corporation
International (2.56%), Parametric Technology Corporation (2.21%) and HealthSouth
Rehabilitation Corporation (2.36%).
3
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION, CONTINUED
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
SMALL CAPITALIZATION FUND
Stock selection was the key to the Fund's superb performance in the relatively
unsettled market of the past six months. Despite investor anxiety over economic
growth in the spring, and interest-rate worries throughout the period, the
market continued to reward companies with strong fundamentals and powerful
earnings potential. With its focus on such companies, the Fund profited as
holdings in all sectors contributed positively to performance. Some gains were
dramatic. Corrections Corporation of America (a prison management firm), and
Wackenhut Corrections Corporation (a provider of security services), moved up
greatly. In the computer software sector, McAfee Associates, Inc., and
Systemsoft Corporation advanced a sizeable amount over the period. In the
health-care sector, our holdings in Quintiles Transnational Corporation and Dura
Pharmaceuticals also reported enormous gains.
As a result, we are extremely pleased to report that for the six months ended
June 30, 1996, the Fund generated a total return of 28.96%--far surpassing its
industry benchmark, the Russell 2000 which advanced 10.39% during the same
period.
INVESTING WITH STRENGTH IN MIND
In the months ahead, we expect to continue our present strategy. We will
continue to seek out and invest in the strongest small-capitalization companies
across all market sectors. Because the fundamentals of the companies we select
are so strong, we believe their prospects are solid, regardless of the
environment.
Nevertheless, as we have seen over the past several years, some market sectors
offer more opportunity than others. Clearly, the demand for health care and
technology products is growing dramatically today and will continue to do so in
the foreseeable future. We would view any correction or adjustment in these
sectors as a serious buying opportunity.
As of June 30, 1996, the Fund was broadly diversified with holdings in over 80
companies. The Fund's top five holdings were McAfee Associates, Inc. (3.28%),
Omnicare, Inc. (3.02%), Concord EFS, Inc. (2.80%), Regal Cinemas, Inc. (2.61%)
and Credit Acceptance Corporation (2.56%).
4
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION, CONTINUED
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
INTERNATIONAL DISCOVERY FUND
After five years of no growth, the Japanese economy began to show strong signs
of life in the first half of 1996. Moreover, high-quality growth stocks, which
had been out of favor with investors in the second half of 1995, bounced back
smartly with the new year. The only fly in the international ointment was the
strength of the U.S. dollar, which was a drag on performance throughout the
year. However, the environment improved as interest rates in Europe turned
around and began to rise, making the dollar less attractive to foreign
investors.
As a result, what began as a relatively mixed period for the Fund ended on a
very positive note. We are pleased to report for the six months ended June 30,
1996, the Fund outperformed its industry benchmark, the MSCI EAFE Index, with a
total return of 10.39%. The MSCI Index advanced only 4.67% during the period.
A POSITIVE OUTLOOK
We believe the remainder of the year ahead will be a good one in international
markets as the Japanese economy continues to improve and other markets around
the world, particularly those in the Pacific region and Latin America,
strengthen and expand. Continental Europe offers opportunity as well. Companies
there are only now beginning the downsizing process that started some years ago
in the U.S. So even if economic growth grinds to a halt on the Continent,
investors may see profit margins grow substantially as European companies become
more efficient. Consequently, we would view a correction or drop in these
markets as a buying opportunity since we believe that, long term, the prospects
for international investors are very bright.
POSITIONED FOR GROWTH
As of June 30, 1996, the Fund was widely diversified, with over 85 holdings in
30 markets around the world. Approximately 33% of the Fund's assets were
invested in Continental Europe, 25% in Japan, 11% in smaller Pacific Basin
markets, 11% in the United Kingdom, 6% in Latin America and 4% in Canada. During
the period, the Fund also added securities from Israel, South Korea and the
Philippines to its portfolio.
At the end of the period, the Fund's top five holdings were BIC (France; 2.16%),
Mitsubishi Heavy Industries Company, Ltd (Japan; 1.91%), Oce Van Der Grinten
N.V. (Netherlands; 1.89%), Keyence Corporation (Japan; 2.05%), and Takeda
Chemical Industries (Japan; 1.94%).
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- -------- ------ -------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (identified cost
$5,534,153; $7,905,298; $15,521,714;
$12,952,569; and $10,946,940,
respectively) ........................ $5,534,153 $7,827,078 $19,903,212 $20,126,303 $13,315,148
Cash ................................... 524 1,076 795 910 1,502,564
Foreign currency (cost $4,319) ......... -- -- -- -- 4,340
Interest and dividends receivable ...... 1,882 91,793 10,303 7,379 22,912
Receivable for securities sold ......... -- -- 77,310 38,695 44,342
Foreign taxes recoverable .............. -- -- -- -- 10,340
Receivable for capital shares issued ... 2,456 3,270 12,310 15,050 11,678
Deferred organization costs ............ 5,006 5,006 5,006 5,006 4,487
Prepaid expenses ....................... 65 1,463 7,615 8,822 --
---------- ---------- ----------- ----------- -----------
TOTAL ASSETS ........................... 5,544,086 7,929,686 20,016,551 20,202,165 14,915,811
---------- ---------- ----------- ----------- -----------
LIABILITIES:
Payable to brokers for investments purchased -- -- -- 75,360 303,871
Payable for capital shares redeemed .... 2,463 8,738 35,991 41,810 12,792
Accrued expenses and other payables:
Investment advisory fees ........... 60 159 541 529 --
Administration fees ................ 30 43 108 106 --
Accounting and custodian fees ...... 40 41 45 45 10,755
Professional fees .................. 1,231 -- -- -- --
Other .............................. 754 856 1,041 961 --
---------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES ...................... 4,578 9,837 37,726 118,811 327,418
---------- ---------- ----------- ----------- -----------
NET ASSETS:
Capital ................................ 5,539,508 7,736,593 14,879,836 11,764,782 12,782,894
Undistributed net investment income (loss) -- 464,652 (65,647) (87,498) 39,647
Accumulated net realized gain (loss)
on investments and foreign currency
transactions ......................... -- (203,176) 783,138 1,232,336 (602,303)
Net unrealized appreciation (depreciation)
in value of investments and translation
of assets and liabilities in foreign
currencies ........................... -- (78,220) 4,381,498 7,173,734 2,368,155
---------- ---------- ----------- ----------- -----------
NET ASSETS ............................. $5,539,508 $7,919,849 $19,978,825 $20,083,354 $14,588,393
========== ========== =========== =========== ===========
Outstanding shares (a) ................. 5,539,508 770,047 1,411,531 991,524 1,247,558
========== ========== =========== =========== ===========
Net asset value offering and redemption
price per share ...................... $1.00 $10.28 $14.15 $20.26 $11.69
========== ========== =========== =========== ===========
</TABLE>
- ---------
(a) Number of shares authorized for each fund is unlimited.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
STATEMENT OF OPERATIONS
THE PARKSTONE ADVANTAGE FUND
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- -------- ------ -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income ........................ $95,239 $220,672 $37,831 $415 $27,082
Dividend income ........................ 8,381 15,501 26,577 30,757 107,665
---------- ---------- ----------- ----------- -----------
103,620 236,173 64,408 31,172 134,747
Less: Foreign tax expense .............. -- -- -- -- (15,580)
---------- ---------- ----------- ----------- -----------
TOTAL INVESTMENT INCOME ................ 103,620 236,173 64,408 31,172 119,167
---------- ---------- ----------- ----------- -----------
EXPENSES:
Investment advisory fees ............... 7,745 26,382 87,817 80,457 79,277
Administration fees .................... 3,872 7,130 17,563 16,091 12,684
Custodian and accounting fees........... 7,761 7,981 8,686 8,586 25,789
Legal and audit fees ................... 2,250 4,750 9,650 7,850 7,494
Trustees' fees ......................... 550 1,200 2,600 2,150 2,288
Printing costs ......................... 345 750 1,500 1,250 1,474
Amortization of deferred organization costs 994 994 994 994 1,005
Other .................................. 496 1,867 1,245 1,292 1,196
---------- ---------- ----------- ----------- -----------
TOTAL EXPENSES ......................... 24,013 51,054 130,055 118,670 131,207
---------- ---------- ----------- ----------- -----------
Net Investment Income (Loss) ........... 79,607 185,119 (65,647) (87,498) (12,040)
---------- ---------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) on:
Investments .......................... -- (32,541) 1,437,102 1,401,018 115,076
Foreign currency transactions ........ -- -- -- -- (8,914)
---------- ---------- ----------- ----------- -----------
Net realized gain (loss) ........... -- (32,541) 1,437,102 1,401,018 106,162
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... -- (289,842) 806,182 2,945,520 1,165,168
Translation of assets and liabilities in
foreign currencies ................. -- -- -- -- (146)
---------- ---------- ----------- ----------- -----------
Net change in unrealized appreciation
(depreciation) ................... -- (289,842) 806,182 2,945,520 1,165,022
---------- ---------- ----------- ----------- -----------
Net gain (loss) ........................ -- (322,383) 2,243,284 4,346,538 1,271,184
---------- ---------- ----------- ----------- -----------
Change in net assets resulting
from operations ...................... $79,607 $(137,264) $2,177,637 $4,259,040 $1,259,144
========== ========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
THE PARKSTONE ADVANTAGE FUND
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- -------- ------ -------------- -------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ....... $79,607 $185,119 $(65,647) $(87,498) $(12,040)
Net realized gain (loss) ........... -- (32,541) 1,437,102 1,401,018 106,162
Net change in unrealized
appreciation (depreciation)...... -- (289,842) 806,182 2,945,520 1,165,022
---------- ---------- ----------- ----------- -----------
Change in net assets resulting from
operations ........................... 79,607 (137,264) 2,177,637 4,259,040 1,259,144
---------- ---------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .............. (79,607) -- -- -- --
---------- ---------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued ........ 4,333,611 1,555,024 3,480,685 3,375,738 2,045,300
Dividends reinvested ............... 79,607 -- -- -- --
Shares redeemed .................... (1,818,624) (256,152) (656,627) (823,985) (361,251)
---------- ---------- ----------- ----------- -----------
Change in net assets from capital share
transactions ......................... 2,594,594 1,298,872 2,824,058 2,551,753 1,684,049
---------- ---------- ----------- ----------- -----------
Total change in net assets ............. 2,594,594 1,161,608 5,001,695 6,810,793 2,943,193
NET ASSETS:
Beginning of period ................ 2,944,914 6,758,241 14,977,130 13,272,561 11,645,200
---------- ---------- ----------- ----------- -----------
End of period ...................... $5,539,508 $7,919,849 $19,978,825 $20,083,354 $14,588,393
========== ========== =========== =========== ===========
Undistributed net investment
income (loss) at end of period ... $ -- $ 464,652 $(65,647) $(87,498) $39,647
========== ========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
THE PARKSTONE ADVANTAGE FUND
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- -------- ------ -------------- -------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ....... $103,053 $293,773 $(100,646) $(128,655) $(40,889)
Net realized gain (loss) ........... -- 146,496 (49,250) 383,283 (36,636)
Net change in unrealized appreciation -- 405,198 3,117,505 2,767,881 1,051,011
---------- ---------- ----------- ----------- -----------
Change in net assets resulting from
operations ........................... 103,053 845,467 2,967,609 3,022,509 973,486
---------- ---------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .............. (103,053) (239,024) -- -- --
---------- ---------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued ........ 887,490 1,877,770 4,255,436 3,811,173 2,078,118
Dividends reinvested ............... 103,053 239,024 -- -- --
Shares redeemed .................... (277,620) (616,153) (1,340,930) (1,037,565) (943,423)
---------- ---------- ----------- ----------- -----------
Change in net assets from capital share
transactions ......................... 712,923 1,500,641 2,914,506 2,773,608 1,134,695
---------- ---------- ----------- ----------- -----------
Total change in net assets ............. 712,923 2,107,084 5,882,115 5,796,117 2,108,181
NET ASSETS:
Beginning of year .................. 2,231,991 4,651,157 9,095,015 7,476,444 9,537,019
---------- ---------- ----------- ----------- -----------
End of year ........................ $2,944,914 $6,758,241 $14,977,130 $13,272,561 $11,645,200
========== ========== =========== =========== ===========
Undistributed net investment
income at end of year ............ $ -- $279,533 $ -- $ -- $51,718
========== ========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
SCHEDULE OF INVESTMENTS
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
PRIME OBLIGATIONS FUND
(Unaudited)
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMERCIAL PAPER (33.3%):
Automobiles (2.2%)
$125,000 General Motors Acceptance
Corporation, 5.35%, 10/11/96 ................ $ 123,068
----------
Banking & Credit (4.4%):
120,000 Ford Motor Credit Company,
5.30%, 7/10/96 .............................. 119,806
125,000 New Center Asset Trust,
5.43%, 11/04/96 ............................. 122,586
----------
242,392
----------
Brokers (2.3%):
125,000 J.P. Morgan, 5.30%, 7/11/96 ................. 124,779
----------
Business Services (2.2%):
125,000 General Electric Capital Corporation,
5.30%, 8/06/96 .............................. 124,301
----------
Communications (2.3%):
125,000 Pearson, Inc., 5.40%, 7/17/96 ............... 124,663
----------
Computers (2.3%):
125,000 IBM Credit Corporation,
5.27%, 7/18/96 .............................. 124,652
----------
Consumer Services (4.5%):
125,000 Merrill Lynch & Company, Inc.,
5.27%, 7/02/96 .............................. 124,945
125,000 Transamerica Finance Corporation,
5.39%, 9/18/96 .............................. 123,484
----------
248,429
----------
Leasing Companies (4.5%):
125,000 International Lease Finance
Corporation, 5.35%, 8/13/96 ................. 124,164
125,000 PHH Corporation, 5.34%, 7/29/96 ............. 124,444
----------
248,608
----------
Manufacturing (2.2%):
125,000 Rexam, PLC, 5.38%, 8/13/96 .................. 124,159
----------
Merchandising (2.1%):
125,000 American Brands, Inc.,
5.36%, 1/15/97 .............................. 121,278
----------
Office & Computing Machines (2.0%):
115,000 Rank Xerox Capital (Europe) Plc,
5.30%, 7/18/96 .............................. 114,678
----------
Utilities (2.3%):
125,000 National Rural Utilities Cooperative
Finance Corporation,
5.35%, 7/08/96 .............................. 124,833
----------
TOTAL COMMERCIAL PAPER ...................... 1,845,840
----------
PRINCIPAL
AMOUNT
OR SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
GOVERNMENT AGENCIES (3.6%):
$200,000 Federal Farm Credit Bank,
5.20%, 10/08/96 ............................. $ 197,082
----------
TOTAL GOVERNMENT AGENCIES ................... 197,082
----------
MONEY MARKET FUNDS (9.0%):
231,359 Lehman Prime Fund ........................... 231,359
269,725 Provident Treasury Fund ..................... 269,725
----------
TOTAL MONEY MARKET FUNDS .................... 501,084
----------
REPURCHASE AGREEMENTS (35.2%):
$974,000 Goldman Tri Party, 5.625%, 7/01/96;
Collateralized by $1,007,020 par value
Federal National Mortgage Association,
7.5%, 6/01/26 (Delivery Value
$974,152) ................................... 974,152
$974,000 Lehman Tri Party, 5.52%, 7/01/96;
Collateralized by $1,060,000 par value
Federal National Mortgage Association,
0%, 6/25/16 (Delivery Value
$974,150) ................................... 974,150
----------
TOTAL REPURCHASE AGREEMENTS ................. 1,948,302
----------
U.S. TREASURY BILLS (18.8%):
$100,000 4.89%, 2/06/97 .............................. 96,985
$165,000 4.99%, 8/29/96 .............................. 163,605
$90,000 4.93%, 7/25/96 .............................. 89,680
$605,000 4.69%, 7/25/96 .............................. 602,950
$90,000 5.00%, 10/17/96 ............................. 88,625
----------
TOTAL U.S. TREASURY BILLS ................... 1,041,845
----------
TOTAL INVESTMENTS (99.9%)
(COST-$5,534,153)(a) ........................ $5,534,153
==========
- ----------
(a) Cost for federal income tax and financial reporting purposes is the same.
The computation of percentages shown is based on the ratio of the market value
of each category of security type to total net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
SCHEDULE OF INVESTMENTS
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
BOND FUND
(Unaudited)
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS (34.3%):
Aerospace and Defense (3.8%):
$300,000 Lockheed Martin Corporation,
6.85%, 5/15/01 .............................. $ 298,125
Communications (1.2%):
100,000 US West Communications,
6.125%, 11/21/00 ............................ 98,028
Electronics (1.6%):
125,000 General Electric MTN,
7.62%, 5/08/00 .............................. 128,750
Finance (18.3%):
100,000 American Express Company
(Eurodollar), 11.625%, 12/12/00 ............. 108,250
150,000 Associates Corporation, N.A.,
8.80%, 8/01/98 .............................. 156,750
150,000 CIT Group Holdings, 6.75%, 5/14/01 .......... 149,438
150,000 Discover Card Master Trust I,
6.05%, 8/18/08 .............................. 138,313
150,000 Ford Motor Credit Corporation,
6.11%, 12/28/01 ............................. 144,000
130,000 General Motors Acceptance
Corporation, 7.125%, 5/01/03 ................ 130,325
100,000 Greentree Financial Corporation,
6.90%, 4/15/19 .............................. 100,614
125,000 Greentree Financial Corporation,
5.90%, 1/15/21 .............................. 124,199
150,000 Household Finance Corporation,
6.45%, 3/15/01 .............................. 147,563
150,000 Norwest Corporation,
5.75%, 2/01/03 .............................. 141,000
105,000 Regions Financial Corporation,
7.75%, 9/15/24 .............................. 109,200
----------
1,449,652
----------
Manufacturing (3.8%):
300,000 Service Corporation International,
6.75%, 6/01/01 .............................. 297,000
----------
Miscellaneous (3.7%):
$150,000 Sears Credit Account Master Trust, CMO,
6.50%, 10/15/03 ............................. 150,000
$150,000 Structured Asset Securities Corporation,
CMO, 5.94%, 2/25/28 ......................... 144,583
----------
294,583
----------
Utilities (1.9%):
150,000 National Rural Utilities,
6.45%, 4/01/01 .............................. 147,375
----------
TOTAL CORPORATE BONDS ....................... 2,713,513
----------
PRINCIPAL
AMOUNT
OR SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
MONEY MARKET FUNDS (8.1%):
380,387 Lehman Prime Fund ........................... $ 380,387
263,000 Provident Treasury Fund ..................... 263,000
----------
TOTAL MONEY MARKET FUNDS .................... 643,387
----------
GOVERNMENT AGENCIES (25.5%):
Farmer's Home Administration (1.9%):
$150,000 Lehman FHA-Title I Loan Trust, CMO,
6.78%, 4/25/08 .............................. 149,850
----------
Federal National Mortgage Association (8.5%):
$100,000 8.90%, 6/12/00 .............................. 107,585
$400,000 6.70%, 8/25/20 .............................. 380,313
$183,260 8.00%, 11/01/23 ............................. 184,587
----------
672,485
----------
Government National Mortgage Association (13.8%):
$244,484 6.50%, 9/15/23 .............................. 228,471
$878,844 7.50%, 8/15/25 .............................. 869,911
----------
1,098,382
----------
Municipality (1.3%)
$100,000 New York City Tax Lien, 1996-1 Class C,
CMO, 7.11%, 2/25/01 ......................... 99,950
----------
TOTAL GOVERNMENT AGENCIES ................... 2,020,667
----------
U.S. TREASURY NOTES (30.9%):
$675,000 7.50%, 11/15/16 ............................. 709,324
$75,000 7.125%, 10/15/98 ............................ 76,529
$250,000 6.375%, 8/15/02 ............................. 247,887
$825,000 5.125%, 2/28/98 ............................. 813,186
$150,000 6.50%, 4/30/99 .............................. 150,826
$310,000 5.625%, 11/30/00 ............................ 300,213
$150,000 6.875%, 5/15/06 ............................. 151,546
----------
TOTAL U.S. TREASURY NOTES ................... 2,449,511
----------
TOTAL INVESTMENTS (98.8%)
(COST-$7,905,298)(a) ..................... $7,827,078
==========
- ----------
(a) Cost for federal income tax and financial reporting purposes is the same.
MTN (Medium Term Note)
CMO (Collateralized Mortgage Obligation)
The computation of percentages shown is based on the ratio of the market value
of each category of security type to total net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
SCHEDULE OF INVESTMENTS
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
EQUITY FUND
(Unaudited)
SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMON STOCK (91.0%):
Amusement & Recreational Services (2.0%):
8,950 Carnival Corporation - Cl. A ................ $ 258,431
3,100 Sun International Hotels, LTD (b) ........... 150,350
----------
........................................................... 408,781
Apparel (1.3%):
3,800 Nine West Group, Inc.(b) .................... 194,275
2,200 Saks Holdings, Inc. (b) ..................... 75,075
----------
269,350
Banking and Finance (7.1%):
5,200 Finova Group, Inc. .......................... 253,500
6,300 First USA, Inc. ............................. 346,500
12,300 Greentree Financial Corporation ............. 384,375
8,300 MBNA Corporation ............................ 236,550
9,100 The Money Store, Inc. ....................... 201,338
----------
1,422,263
----------
Biotechnology (0.7%):
4,000 Arterial Vascular Engineering, Inc. (b) ..... 145,000
----------
Broadcasting (4.1%):
8,350 British Sky Broadcasting (ADR) (b) .......... 339,219
5,000 Canwest Global Communications
Corporation (b) ............................. 136,250
4,150 Clear Channel Communications, Inc. (b) ...... 341,856
----------
817,325
----------
Casinos (1.2%):
4,550 Mirage Resorts, Inc. (b) .................... 245,700
----------
Communications (2.1%):
10,500 LCI International, Inc. (b) ................. 329,438
4,700 Orange Plc (b) .............................. 82,250
----------
411,688
----------
Communication Equipment (1.5%):
4,500 Tellabs, Inc. (b) ........................... 300,938
----------
Computer Networking (1.4%):
5,900 3Com Corporation (b) ........................ 269,925
----------
Computer Services (5.5%):
10,450 Ceridian Corporation (b) .................... 527,725
4,300 Computer Sciences Corporation (b) ........... 321,425
2,300 FileNet Corporation (b) ..................... 83,950
3,000 Reynolds & Reynolds Company ................. 159,750
----------
1,092,850
----------
Computer Software (16.2%):
800 Atria Software, Inc. (b) .................... 40,000
7,600 Baan Company, N.V. (b) ...................... 258,400
12,350 CUC International, Inc. (b) ................. 438,425
8,200 Fiserv, Inc. (b) ............................ 246,000
15,200 GT Interactive Software Corporation (b) ..... 254,600
6,600 Informix Corporation (b) .................... 148,500
4,300 Macromedia, Inc. (b) ........................ 94,063
7,650 McAfee Associates, Inc. (b) ................. 374,850
6,062 Oracle Corporation (b) ...................... 239,070
10,200 Parametric Technology Corporation (b) ....... 442,425
6,000 Peoplesoft, Inc. (b) ........................ 427,500
6,800 Sungard Data Systems, Inc. (b) .............. 272,850
----------
3,236,683
----------
Consumer Goods & Services (3.6%):
12,200 Newell Company .............................. 373,625
7,225 Paychex, Inc. ............................... 347,703
----------
721,328
----------
Correctional Facilities (0.5%):
1,400 Corrections Corporation of America (b) ...... 98,000
----------
SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMON STOCK, CONTINUED
Drugs (2.1%):
3,800 Elan Corporation plc (b) .................... $ 217,075
5,200 Watson Pharmaceutical, Inc. (b) ............. 196,950
----------
414,025
----------
Electric Companies & Systems (1.9%)
10,900 FORE Systems, Inc. (b) ...................... 393,763
----------
Electrical Machinery & Electronic Components (2.9%):
5,800 Idexx Laboratories, Inc. (b) ................ 227,650
3,600 LSI Logic Corporation (b) ................... 93,600
3,050 Linear Technology Corporation ............... 91,500
5,500 Molex, Inc. - Cl. A ......................... 161,562
----------
574,312
----------
Finance (2.4%):
4,700 Concord EFS, Inc. (b) ....................... 166,850
5,550 Sunamerica, Inc. ............................ 313,575
----------
480,425
----------
Funeral Services (0.7%):
4,650 Stewart Enterprises, Inc. ................... 145,313
----------
Hotel Management (5.5%):
3,700 Circus Circus Enterprises, Inc. (b) ......... 151,700
13,400 Hospitality Franchise Systems, Inc. (b) ..... 938,000
----------
1,089,700
----------
Insurance (2.1%):
5,600 American Re Corporation ..................... 251,300
5,200 United Companies Financial Corporation ...... 176,800
----------
428,100
----------
Medical & Health Care (8.0%):
13,100 HEALTHSOUTH Corporation (b) ................. 471,600
17,550 Health Management Associates, Inc. (b) ...... 355,388
5,900 Medpartners/Mullikin Inc. (b) ............... 123,163
14,800 Omnicare, Inc. .............................. 392,200
6,550 PhyCor Inc. (b) ............................. 248,900
----------
1,591,251
----------
Office, Computing and Electronic Machinery (0.9%):
6,300 Danka Business Systems (ADR) ................ 184,275
----------
Office Supplies (2.5%):
7,500 Alco Standard Corporation ................... 339,375
3,700 US Office Products Company (b) .............. 155,400
----------
494,775
----------
Personal Services (2.6%):
8,900 Service Corporation International ........... 511,750
----------
Restaurants & Food Service (1.2%):
6,400 Lone Star Steakhouse & Saloon (b) ........... 241,600
----------
Retail Trade (7.8%):
6,300 Autozone, Inc. (b) .......................... 218,925
5,200 Consolidated Stores Corporation (b) ......... 191,100
8,100 Intimate Brands, Inc. ....................... 185,288
8,800 Petsmart, Inc. (b) .......................... 420,200
7,400 Sunglass Hut International, Inc. (b) ........ 180,375
11,600 Viking Office Products, Inc. (b) ............ 363,950
----------
1,559,838
----------
Textiles (1.2%):
4,500 Cintas Corporation .......................... 240,750
----------
Wholesale Trade (2.0%):
5,500 Cardinal Health, Inc. ....................... 396,688
----------
TOTAL COMMON STOCK .......................... 18,186,396
----------
MONEY MARKET FUNDS (8.6%):
906,816 Lehman Prime Fund ........................... 906,816
810,000 Provident Treasury Fund ..................... 810,000
----------
TOTAL MONEY MARKET FUNDS .................... 1,716,816
----------
TOTAL INVESTMENTS (99.6%):
(COST $15,521,714)(a) ...................... $19,903,212
==========
- ----------
(a) Cost for federal income tax and financial reporting purposes is the same.
(b) Represents non-income producing security.
The computation of percentages shown is based on the ratio of the market value
of each category of security type to total net assets.
12
<PAGE>
SCHEDULE OF INVESTMENTS
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
SMALL CAPITALIZATION FUND
(Unaudited)
SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMON STOCK (92.8%):
Automobile Leasing & Services (1.0%):
8,950 Oxford Resources Corporation-Cl. A (b) ...... $ 208,088
----------
Banking & Finance (0.5%):
2,300 First USA Paymentech, Inc. (b) .............. 92,000
----------
Biotechnology (2.1%):
3,900 Arterial Vascular Engineering, Inc. (b) ..... 141,375
5,600 Serologicals Corporation (b) ................ 148,400
5,050 ESC Medical Systems Limited (b) ............. 142,663
----------
432,438
----------
Business Services (2.1%):
3,150 HA-LO Industries, Inc. (b) .................. 81,900
2,800 IntelliQuest Information Group, Inc. (b) .... 91,700
7,200 Iron Mountain, Inc. (b) ..................... 151,200
5,400 MedQuist, Inc. (b) .......................... 97,875
----------
422,675
----------
Communications (4.0%):
7,400 DSP Communications, Inc. (b) ................ 380,175
7,100 LCI International, Inc. (b) ................. 222,763
9,600 Transaction Network Services (b) ............ 206,400
----------
809,338
----------
Computer Services (5.9%):
5,650 Alternative Resources Corporation (b) ....... 207,638
3,700 CDW Computer Centers, Inc. (b) .............. 257,150
13,950 Cambridge Technology Partners, Inc. (b) ..... 425,475
4,700 Cerion Technologies, Inc. (b) ............... 45,825
5,700 OzEmail Limited-ADR (b) ..................... 73,388
3,000 Registry Inc., The .......................... 87,750
2,400 Visio Corporation (b) ....................... 86,400
----------
1,183,626
----------
Computer Software (14.4%):
2,800 Aspen Technologies, Inc. (b) ................ 154,000
7,600 Dendrite International, Inc. (b) ............ 262,200
1,800 Electronics for Imaging (b) ................. 124,875
4,400 HCIA, Inc. (b) .............................. 277,200
6,400 Inso Corporation (b) ........................ 335,200
3,200 Maxis, Inc. (b) ............................. 63,200
13,450 Mcafee Associates, Inc. (b) ................. 659,050
1,600 Premenos Technology Corporation (b) ......... 29,200
3,950 Project Software & Development, Inc. (b) .... 185,156
3,100 Raptor Systems, Inc. (b) .................... 82,150
7,100 Systemsoft Corporation (b) .................. 333,700
3,900 Veritas Software Corporation (b) ............ 167,700
3,500 Viasoft, Inc. (b) ........................... 226,188
----------
2,899,819
----------
Correctional Facilities (1.7%):
10,000 Wackenhut Corrections Corporation (b) ....... 333,750
----------
Drugs (4.3%):
8,100 Dura Pharmaceuticals, Inc. (b) .............. 453,600
5,475 Jones Medical Industries, Inc. .............. 182,044
4,650 Parexel International Corporation (b) ....... 224,363
----------
860,007
----------
Education Services (1.1%):
6,000 Sylvan Learning Systems, Inc. (b) ........... 226,500
----------
Electric Companies & Systems (0.6%):
4,800 C.P. Clare Corporation (b) .................. 123,600
----------
Electrical Machinery & Electronic Components (2.3%):
10,750 Actel Corporation (b) ....................... 198,875
10,000 Sanmina Corporation (b) ..................... 270,000
----------
468,875
----------
Finance (8.9%):
5,825 Aames Financial Corporation ................. 208,972
6,000 Central Financial Acceptance
Corporation (b) ............................. 83,250
15,850 Concord EFS, Inc. (b) ....................... 562,675
24,450 Credit Acceptance Corporation (b) ........... 513,450
4,000 First Merchants Acceptance (b) .............. 79,000
11,057 Imperial Credit Industries, Inc. (b) ........ 334,474
----------
1,781,821
----------
SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMON STOCK, CONTINUED
Funeral Services (0.8%):
5,600 Equity Corporation International (b) ........ $ 151,200
----------
Hotel Management (1.4%):
5,700 Studio Plus Hotels, Inc. (b) ................ 188,100
4,200 Surburbuan Lodges of America, Inc. (b) ...... 97,125
----------
285,225
----------
Household Products (0.9%):
4,500 USA Detergents, Inc. (b) .................... 179,438
----------
Insurance (2.1%):
8,900 Amerin Corporation (b) ...................... 238,075
4,050 Compdent Corporation (b) .................... 188,325
----------
426,400
----------
Medical & Health Care (13.1%):
2,100 DVI Health Services Corporation (b) ......... 33,075
5,200 MedCath, Inc. (b) ........................... 62,400
3,200 NCS HealthCare, Inc. (b) .................... 96,800
8,600 Occusystems, Inc. (b) ....................... 321,425
22,900 Omnicare, Inc. .............................. 606,850
11,700 Orthodontic Centers of America (b) .......... 310,050
11,475 PhyCor, Inc. (b) ............................ 436,050
12,250 Rexall Sundown, Inc. (b) .................... 330,750
8,850 Total Renal Care Holdings, Inc. (b) ......... 373,913
5,200 UroCor, Inc. (b) ............................ 63,700
----------
2,635,013
----------
Medical Instruments & Supplies (1.6%):
5,950 Gulf South Medical Supply (b) ............... 232,050
7,000 OrthoLogic Corporation (b) .................. 89,250
----------
321,300
----------
Motor Vehicles & Equipment (1.2%):
8,150 Miller Industries, Inc. (b) ................. 233,294
----------
Motion Picture Theaters & Production (2.6%):
11,475 Regal Cinemas, Inc. (b) ..................... 524,981
----------
Office Computing & Electronic Machines (4.6%):
11,200 Checkpoint Systems, Inc. (b) ................ 385,000
11,550 PMT Services, Inc. (b) ...................... 330,619
7,700 Flextronics International, LTD (b) .......... 202,125
----------
917,744
----------
Pet Supplies (1.1%):
7,475 Petco Animal Supplies, Inc. (b) ............. 214,906
----------
Publishing & Printing (0.7%):
4,400 Desktop Data, Inc. (b) ...................... 146,300
----------
Research & Development (1.3%):
4,000 Quintiles Transnational Corporation (b) ..... 263,000
----------
Restaurants & Food Service (2.1%):
11,150 Landry's Seafood Restaurants (b) ............ 275,963
5,500 Longhorn Steaks, Inc. (b) ................... 137,500
----------
413,463
----------
Retail Trade (8.4%):
7,550 Just For Feet, Inc. (b) ..................... 399,206
9,150 Men's Wearhouse, (The), Inc. (b) ............ 295,088
7,700 Renters Choice, Inc. (b) .................... 196,350
10,200 Henry Schein, Inc. (b) ...................... 390,150
5,750 West Marine, Inc. (b) ....................... 411,125
----------
1,691,919
----------
Wholesale Trade (2.0%):
5,800 Barnett, Inc. (b) ........................... 166,750
7,400 Brightpoint, Inc. (b) ....................... 159,100
2,400 Nuco2, Inc. (b) ............................. 73,800
----------
399,650
----------
TOTAL COMMON STOCK .......................... 18,646,370
----------
MONEY MARKET FUNDS (7.4%):
888,933 Lehman Prime Fund ........................... 888,933
591,000 Provident Treasury Fund ..................... 591,000
----------
TOTAL MONEY MARKET FUNDS .................... 1,479,933
----------
TOTAL INVESTMENTS (100.2%)
(COST $12,952,569)(a) ...................... $20,126,303
==========
- ----------
(a) Cost for federal income tax and financial reporting purposes is the same.
(b) Represents non-income producing security.
The computation of percentages shown is based on the ratio of the market value
of each category of security type to total net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
SCHEDULE OF INVESTMENTS
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
INTERNATIONAL DISCOVERY FUND
(Unaudited)
SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMON STOCK (91.3%) Argentina (1.3%):
3,500 Telefonica de Argentina S.A. (ADR) (b) ...... $ 103,688
3,500 YPF Sociedad Anonima (ADR) .................. 78,750
----------
182,438
----------
Australia (2.7%):
60,000 Foster's Brewing Group, Ltd. (b) ............ 103,320
50,000 Pioneer International, Ltd. (b) ............. 145,465
12,189 Smith (Howard), Ltd. (b) .................... 75,715
20,000 Village Roadshow, Ltd. (b) .................. 69,981
----------
394,481
----------
Belgium (0.9%):
400 Colruyt S.A. (b) ............................ 135,877
----------
Brazil (1.4%):
3,000 Telecomunicacoes Brasileiras S.A. ........... 208,875
----------
Canada (4.1%):
13,000 Bombardier, Inc. "B" (b) .................... 194,947
12,000 CAE, Inc. ................................... 99,875
6,000 Canadian Natural Resources, Ltd. (b) ........ 111,975
3,500 Cinram, Ltd. ................................ 75,970
1,800 Newbridge Networks Corporation (b) .......... 117,900
----------
600,667
----------
Chile (1.5%):
2,200 Compania de Telefonos de Chile (ADR) ........ 215,875
----------
Denmark (1.4%):
4,000 Danisco A.S. (b) ............................ 199,012
----------
Finland (0.7%):
2,000 Stockmann AB (b) ............................ 103,088
----------
France (6.9%):
2,220 BIC (b) ..................................... 315,202
1,280 Castorama Dubois Investisse ................. 252,097
950 Docks de France S.A. (b) .................... 193,746
900 Hermes International S.A. (b) ............... 237,739
----------
998,784
----------
Germany (5.5%):
2,700 Adidas AG (b) ............................... 226,699
300 Linde AG (b) ................................ 194,971
525 Mannesmann AG (b) ........................... 181,284
2,700 Schering AG (b) ............................. 196,212
----------
799,166
----------
Hong Kong (2.7%):
100,000 Giordano International, Ltd. (b) ............ 96,897
7,000 Hong Kong and China Gas
(Warrants) (b) .............................. 1,831
84,000 Hong Kong and China Gas
Company, Ltd. (b) ........................... 134,028
25,000 Johnson Electric Holdings, Ltd. (b) ......... 56,200
10,500 Sun Hung Kai Properties, Ltd. (b) ........... 106,150
----------
395,106
----------
SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMON STOCK, CONTINUED
Indonesia (0.7%):
4,000 PT Hanjaya Mandala Sampoerna (b) ............ $ 45,572
1,500 PT Indosat (ADR) ............................ 50,250
----------
95,822
----------
Israel (0.4%):
1,600 Teva Pharmaceutical
Industries, Ltd. (ADR) (b) .................. 60,700
----------
Italy (1.4%):
4,020 Industrie Natuzzi Spa (ADR) (b) ............. 206,025
----------
Japan (25.4%):
1,000 Autobacs Seven Company, Ltd. ................ 96,715
8,000 Daiichi Pharmaceutical
Company, Ltd. (b) ........................... 123,358
17,000 Denki Kogyo Company, Ltd. (b) ............... 175,274
2,000 Doutor Coffee Company, Ltd. ................. 93,066
3,500 Hirose Electric ............................. 216,195
2,200 Keyence Corporation (b) ..................... 299,088
6,000 Kurita Water Industries ..................... 146,168
2,200 Mabuchi Motor Company ....................... 140,109
22,000 Matsushita Electric Works ................... 238,869
20,000 Mitsubishi Electric Corporation (b) ......... 139,416
32,000 Mitsubishi Heavy Industries
Company, Ltd. (b) ........................... 278,248
13,000 NEC Corporation ............................. 141,150
2,000 Nichii Gakkan Company ....................... 104,015
3,000 PCA Corporation ............................. 132,208
4,000 Rohm Company, Ltd. .......................... 264,234
8,000 Santen Pharmaceutical Company, Ltd. ......... 186,131
3,000 Secom ....................................... 198,175
3,800 Sho-Bond Corporation ........................ 142,153
4,000 TDK Corporation (b) ......................... 238,685
10,000 Takasago International (b) .................. 74,270
16,000 Takeda Chemical Industries (b) .............. 283,212
----------
3,710,739
----------
Korea (0.4%):
3,300 Korea Mobile Telecommunications (b) ......... 56,513
----------
Luxembourg (0.4%):
4,000 Quilmes Industrial S.A. (b) ................. 41,000
2,000 Quilmes Industrial S.A. (ADR) (b) ........... 20,500
----------
61,500
----------
Malaysia (2.3%):
25,000 Sungei Way Holdings Bhd ..................... 117,305
31,000 United Engineers, Ltd. (b) .................. 215,079
----------
332,384
----------
Mexico (1.5%):
13,000 Fomento Economico Mexicano
S.A. de C.V. (b) ............................ 36,849
8,000 Grupo Carso S.A. de C.V. (b) ................ 56,744
8,000 Grupo Televisa S.A. (b) ..................... 123,612
----------
217,205
----------
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
SCHEDULE OF INVESTMENTS
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
INTERNATIONAL DISCOVERY FUND (CONTINUED)
(Unaudited)
SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMON STOCK, CONTINUED
Netherlands (6.2%):
10,500 Elsevier N.V. (b) ........................... $159,221
4,000 Grolsch N.V. (b) ............................ 163,935
1,900 Hagemeyer N.V. (b) .......................... 135,269
2,600 Oce-Van Der Grinten N.V. (b) ................ 275,223
1,476 Wolters Kluwer (b) .......................... 167,562
----------
901,210
----------
New Zealand (1.1%):
20,000 Fernz Corporation, Ltd. (b) ................. 59,647
32,262 Fisher & Paykel Industries, Ltd. (b) ........ 103,516
----------
163,163
----------
Norway (0.7%):
3,200 Nera AS ..................................... 101,903
----------
Philippines (0.4%):
75,000 C&P Homes, Inc. ............................. 65,274
----------
Portugal (2.6%):
9,000 Portugal Telecom S.A. (ADR) ................. 236,250
8,200 Unicer - Uniao Cervejeira S.A. (b) .......... 146,144
----------
382,394
----------
Singapore (1.1%):
7,000 Fraser & Neave, Ltd. ........................ 72,447
33,000 Singapore Technologies Industrial
Corporation, Ltd. ........................... 87,488
----------
159,935
----------
Spain (2.0%):
3,800 Prosegur, CIA de Seguridad SA ............... 133,333
3,000 Tabacalera S.A. ............................. 150,877
----------
284,210
----------
Sweden (1.1%):
7,000 Sandvik AB "B" (b) .......................... 161,507
----------
Switzerland (3.2%):
30 Roche Holding AG (b) ........................ 228,586
100 SGS Societe Generale de Surveillance
Holding S.A. "B" (b) ........................ 239,084
----------
467,670
----------
Thailand (0.7%):
6,500 Advanced Info Service Plc (b) ............... 101,895
----------
SECURITY
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------
COMMON STOCK, CONTINUED
United Kingdom (10.6%):
24,000 Compass Group Plc ........................... $ 219,348
74,000 Halma Plc (b) ............................... 202,093
18,000 Logics Plc (b) .............................. 180,152
62,000 Polypipe Plc (b) ............................ 195,297
24,000 Powerscreen International Plc ............... 169,818
33,000 Rentokil Group Plc (b) ...................... 209,433
20,000 Reuters Holdings Plc (b) .................... 241,755
25,000 TT Group Plc (b) ............................ 133,834
----------
1,551,730
----------
TOTAL INVESTMENTS (91.3%)
(COST-$10,946,940) (a) ..................... $13,315,148
==========
INVESTMENT CONCENTRATION
At June 30, 1996, International Discovery Fund's investment concentration, by
industry, was as follows:
Aerospace and Engineering ...... 13.4%
Basic Industries ............... 5.0%
Business Services .............. 7.2%
Conglomerates .................. 1.9%
Consumer Durables .............. 7.8%
Consumer Nondurables ........... 12.2%
Electrical and Electronics ..... 16.2%
Energy ......................... 2.1%
Financial ...................... .7%
Health Care .................... 7.9%
Retailing ...................... 8.0%
Telecommunications ............. 8.9%
Other Assets ................... 8.7%
-------
Total Net Assets ............... 100.0%
=======
- ----------
(a) Cost for federal income tax and financial reporting purposes is the same.
(b) Represents non-income producing security.
ADR (American Depository Receipt)
The computation of percentages shown is based on the ratio of the market value
of each category of security type to total net assets.
NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
(Unaudited)
1. ORGANIZATION:
The Parkstone Advantage Fund (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end investment
company.
The Fund is authorized to issue an unlimited number of shares which are
shares of beneficial interest without par value. The Fund presently offers
series of shares of the Prime Obligations Fund, Bond Fund, Equity Fund,
Small Capitalization Fund, and International Discovery Fund. Sales of shares
of the Fund may only be made to separate accounts of various life insurance
companies ("Participating Insurance Companies"). As of June 30, 1996, the
only Participating Insurance Company is Security Benefit Life Insurance
Company.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
SECURITIES VALUATION:
Investments of the Prime Obligations Fund are valued at either amortized
cost, which approximates market value, or at original cost, which combined
with accrued interest approximates market value. Under the amortized cost
method, discount or premium is amortized on a constant basis to the maturity
of the security.
Investments in common and preferred stocks, corporate bonds, foreign
government bonds and U.S. Government securities of the Bond Fund, Equity
Fund, Small Capitalization Fund, and International Discovery Fund,
(collectively, "the variable net asset value funds"), are valued at their
closing sales price, or if there have been no sales on a particular day, the
latest bid price. If no bid price is available, then the securities are
valued in good faith using methods approved by or under the supervision of
the Board of Trustees of the Fund. Investments in investment companies are
valued at their respective net asset values. The differences between the
cost and market values of investments held by the variable net asset value
funds are reflected as either unrealized appreciation or depreciation.
FOREIGN CURRENCY TRANSACTIONS:
The accounting records of the Fund are maintained in U.S. dollars. All
assets and liabilities initially expressed in foreign currencies are
translated into U.S. dollar amounts at prevailing exchange rates. Purchases
and sales of investment securities, dividend income and certain expenses are
translated at the rates of exchange prevailing on the respective dates of
such transactions. The Fund does not isolate that portion of the results of
operations resulting from changes in the foreign exchange rates on
investments from the fluctuations arising from changes in the market prices
of securities held. Such fluctuations are included with the net realized and
unrealized gain or loss on investments. Net realized foreign exchange gains
or losses arise from sales of portfolio securities, sales of foreign
currencies, and the difference between asset and liability amounts initially
stated in foreign currencies and the U.S. dollar value of the amounts
actually received or paid. Net unrealized foreign exchange gains or losses
arise from changes in the value of portfolio securities and other assets and
liabilities at the end of the reporting period, resulting from changes in
the exchange rates.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS, CONTINUED
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
(Unaudited)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The International Discovery Fund may enter into forward foreign exchange
contracts in connection with foreign currency risk from the purchase or sale
of securities denominated in foreign currency. The International Discovery
Fund may also enter into such contracts to manage changes in foreign
currency exchange rates on portfolio positions. These contracts are marked
to market daily, by recognizing the difference between the contract exchange
rate and the forward market rate as unrealized gains or losses. Realized
gains or losses are recognized when contracts are settled and are reported
in the statement of operations. These contracts involve market risk in
excess of the amount reflected in the Statement of Assets and Liabilities.
The face or contract amount in U.S. dollars reflects the total exposure the
International Discovery Fund has in that particular currency contract.
Losses may arise due to changes in the value of the foreign currency or if
the counterparty does not perform under the contract.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the accrual
basis and includes, where applicable, the pro rata amortization of premium
or discount. Dividend income is recorded on the ex-dividend date. Gains or
losses realized on sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
REPURCHASE AGREEMENTS:
The Fund may enter into repurchase agreements from member banks of the
Federal Deposit Insurance Corporation ("FDIC") with capital, surplus and
undivided profits in excess of $100,000,000 (as of the date of their most
recently published financial statements) and from registered broker/dealers
which First of America Investment Corporation (Investment Advisor for the
Fund) deems creditworthy under guidelines approved by the Board of Trustees,
subject to the seller's agreement to repurchase the underlying securities at
a mutually agreed-upon date and price. The repurchase price generally equals
the price paid by the Fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the underlying
collateral. The seller, under a repurchase agreement, is required to
maintain the value of collateral held pursuant to the agreement at not less
than the repurchase price (including accrued interest). Securities subject
to repurchase agreements are held by the Fund's custodian or another
qualified custodian or in the Federal Reserve/Treasury book-entry system.
DISTRIBUTIONS TO SHAREHOLDERS:
For the Prime Obligations Fund (money market fund) dividends of net
investment income are declared daily and paid monthly and distributable net
realized capital gains are declared and distributed at least annually.
Dividends from net investment income and distributable realized capital
gains are declared and paid at least annually for the variable net asset
value funds. The character of distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. These differences are
primarily due to the recharacterization of foreign currency gains and
losses.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS, CONTINUED
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
(Unaudited)
INCOME TAXES:
The Fund intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distributes its
taxable net investment income and net realized capital gains sufficient to
relieve it from all, or substantially all, federal income, excise and state
income taxes. Therefore, no provision for federal or state tax is required.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses of the Fund are prorated to the Funds
on the basis of relative net assets.
Organization costs of $10,000 for each fund are being amortized over five
years.
3. INVESTMENT RISKS
The International Discovery Fund's investments in foreign securities may
involve risks not present in domestic investments. Since foreign securities
are denominated in foreign currency and pay interest or dividends in foreign
currencies, changes in the relationship of these currencies to the U.S.
dollar can significantly affect the value of the investments and operations
of the Fund. Foreign investments may also subject the Fund to foreign
government exchange restrictions, expropriation, taxation or other
political, social or economic developments, all of which could affect the
market and/or credit risk of the investments.
4. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six months ended June 30, 1996, are as follows:
PURCHASES SALES
----------- -----------
Bond Fund .................................... $11,542,626 $10,100,461
Equity Fund .................................. 8,690,855 6,757,421
Small Capitalization Fund .................... 6,973,087 5,111,161
International Discovery Fund ................. 4,984,790 2,949,207
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS, CONTINUED
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
(Unaudited)
5. CAPITAL SHARE TRANSACTIONS:
PRIME BOND
OBLIGATIONS FUND FUND
------------------- -------------------
AMOUNT SHARES AMOUNT SHARES
--------- ------- --------- -------
Period from January 1, 1996
to June 30, 1996:
(unaudited)
Shares sold .............. $4,333,611 4,333,611 $1,555,024 151,060
Dividends reinvested ..... 79,607 79,607 0 0
Shares redeemed .......... (1,818,624) (1,818,624) (256,152) (24,831)
--------- --------- ---------- --------
Net increase ............. $2,594,594 2,594,594 $1,298,872 126,229
========= ========= ========== ========
Year ended December 31, 1995:
(audited)
Shares sold .............. $887,490 887,490 $1,877,770 184,497
Dividends reinvested ..... 103,053 103,053 239,024 23,713
Shares redeemed .......... (277,620) (277,620) (616,153) (61,669)
--------- --------- ---------- --------
Net increase ............. $712,923 712,923 $1,500,641 146,541
========= ========= ========== ========
<TABLE>
<CAPTION>
EQUITY SMALL CAPITALIZATION INTERNATIONAL DISCOVERY
FUND FUND FUND
------------------- -------------------- -----------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
--------- ------- --------- ------- --------- -------
Period from January 1, 1996
to June 30, 1996:
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Shares sold .............. $3,480,685 255,603 $3,375,738 191,504 $2,045,300 180,815
Shares redeemed .......... (656,627) (48,256) (823,985) (44,979) (361,251) (32,671)
--------- ------- --------- ------- --------- -------
Net increase ............. $2,824,058 207,347 $2,551,753 146,525 $1,684,049 148,144
========= ======= ========= ======= ========= =======
Year ended December 31, 1995:
(audited)
Shares sold .............. $4,255,436 383,085 $3,811,173 277,228 $2,078,118 205,557
Shares redeemed .......... (1,340,930) (122,787) (1,037,565) (77,789) (943,423) (94,693)
--------- ------- --------- ------- --------- -------
Net increase ............. $2,914,506 260,298 $2,773,608 199,439 $1,134,695 110,864
========= ======= ========= ======= ========= =======
</TABLE>
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS, CONTINUED
THE PARKSTONE ADVANTAGE FUND
JUNE 30, 1996
(Unaudited)
6. RELATED PARTY TRANSACTIONS:
Security Management Company ("SMC"), a subsidiary of Security Benefit Life
Insurance Company, with whom certain officers and trustees of the Fund are
affiliated, serves the Fund as Administrator. Such officers and trustees are
paid no fees directly by the Fund. Under the terms of the administration
agreement, SMC's fees are computed daily as a percentage of the average net
assets of the Fund. SMC also serves as Mutual Fund Accountant and Transfer
Agent. Security Distributors, Inc. ("SDI"), with whom certain officers and
trustees of the Fund are also affiliated, serves as the Fund's distributor.
SDI receives no fees for providing distribution services to the Fund.
Beginning July 1, 1996, BISYS Fund Services will assume the responsibilities
of Fund Administrator, Fund Accountant, and Transfer Agent. The service
agreements between the Trust and BISYS will be identical to the current
agreements with SMC, except with respect to the identities of the service
providers, effective date of the agreements, and the initial term of the
agreements.
Investment advisory services are provided to the Fund by First of America
Investment Corp. ("FIC"). Gulfstream Global Investors, LTD serves as the
subadvisor for the International Discovery Fund.
Information regarding these services and fees is as follows for the six
months ended June 30, 1996:
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- ---------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee (percentage of average net assets) .40% .74% 1.00% 1.00% 1.25%
ADMINISTRATION FEES:
Annual fee (percentage of
average net assets) ............... .20% .20% .20% .20% .20%
ANNUAL ACCOUNTING SERVICE FEE (a)..... $15,000 $15,000 $15,000 $15,000 $30,000
</TABLE>
- ----------
(a) Fees are the greater of .03% of average net assets or $1,250 per month,
except for International Discovery Fund the fees of which are the greater
of .08% of average net assets or $2,500 per month.
7. FEDERAL INCOME TAXES:
The amounts of unrealized appreciation (depreciation) for income tax
purposes at June 30, 1996, for all securities and foreign currency holdings
(including foreign currency receivables and payables) were as follows:
INTER-
SMALL NATIONAL
BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND
---- ------ -------------- ---------
Unrealized appreciation ... $22,431 $4,720,825 $7,426,725 $2,528,505
Unrealized depreciation ... (100,651) (339,327) (252,991) (160,350)
--------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) $(78,220) $4,381,498 $7,173,734 $2,368,155
======== ========= ========= ==========
20
<PAGE>
FINANCIAL HIGHLIGHTS
THE PARKSTONE ADVANTAGE FUND
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- -------- ------ -------------- -------------
<S> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING
THROUGHOUT THE YEAR
NET ASSET VALUE:
Beginning of Period ................... $1.00 $10.50 $12.44 $15.71 $10.59
--------- --------- ---------- ----------- ----------
Investment Activities
Net investment income (loss) .......... 0.02 0.17 (0.05) (0.09) (0.02)
Net realized and unrealized gain (loss)
on investments ...................... -- (0.39) 1.76 4.64 1.12
--------- --------- ---------- ---------- ----------
Total from Investment Activities .. 0.02 (0.22) 1.71 4.55 1.10
--------- --------- ---------- ---------- ----------
Distributions
Net investment income ................. (0.02) -- -- -- --
--------- --------- ---------- ---------- ----------
Net Asset Value, End of Period .......... $1.00 $10.28 $14.15 $20.26 $11.69
========= ========= ========== ========== ==========
Total Return (a) ...................... 2.04% (2.10%) 13.75% 28.96% 10.39%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period ........... $5,539,508 $7,919,849 $19,978,825 $20,083,354 $14,588,393
Ratio of expenses to average
net assets (b) ...................... 1.24% 1.43% 1.48% 1.48% 2.07%
Ratio of net investment income (loss)
to average net assets (b) ........... 4.13% 5.20% (0.75%) (1.09%) (0.19%)
Portfolio turnover (b) ................ -- 305% 83% 67% 51%
</TABLE>
- ----------
(a) Total return information does not take into account any charges paid at the
time of purchase.
(b) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
FINANCIAL HIGHLIGHTS
THE PARKSTONE ADVANTAGE FUND
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- -------- ------ -------------- -------------
<S> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING
THROUGHOUT THE YEAR
NET ASSET VALUE:
Beginning of Period ................... $1.00 $9.35 $9.64 $11.58 $9.65
---------- --------- ---------- ---------- ----------
Investment Activities
Net investment income (loss) .......... 0.041 0.40 (0.08) (0.15) (.03)
Net realized and unrealized gain
on investments ...................... -- (1.17) 2.88 4.28 .97
---------- --------- ---------- ---------- ----------
Total from Investment Activities .. 0.041 1.57 2.80 4.13 .94
---------- --------- ---------- ---------- ----------
Distributions
Net investment income ................. (0.041) (0.42) -- -- --
---------- --------- ---------- ---------- ----------
Net Asset Value, End of Year ............ $1.00 $10.50 $12.44 $15.71 $10.59
========== ========= ========== ========== ==========
Total Return (a) ...................... 4.19% 16.98% 29.05% 35.66% 9.74%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of year ............. $2,944,914 $6,758,241 $14,977,130 $13,272,561 $11,645,200
Ratio of expenses to average
net assets .......................... 1.64% 1.57% 1.62% 1.64% 2.38%
Ratio of net investment income (loss)
to average net assets ............... 4.15% 5.31% (0.84%) (1.29%) (.39%)
Portfolio turnover .................... -- 178% 44% 64% 86%
</TABLE>
- ----------
(a) Total return information does not take into account any charges paid at the
time of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
FINANCIAL HIGHLIGHTS
THE PARKSTONE ADVANTAGE FUND
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- -------- ------ -------------- -------------
<S> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING
THROUGHOUT THE YEAR
NET ASSET VALUE:
Beginning of Period ................... $1.00 $9.96 $10.17 $11.00 $10.35
---------- --------- ---------- ---------- ----------
Investment Activities
Net investment income (loss) .......... 0.023 0.42 (0.07) (0.13) (0.07)
Net realized and unrealized gain
on investments ...................... -- (0.96) (0.46) .71 (0.63)
---------- --------- ---------- ---------- ----------
Total from Investment Activities .. 0.023 (0.54) (0.53) .58 (0.70)
---------- --------- ---------- ---------- ----------
Distributions
Net investment income ................. (0.023) (0.07) -- -- --
---------- --------- ---------- ---------- ----------
Net Asset Value, End of Year ............ $1.00 $9.35 $9.64 $11.58 $9.65
========== ========= ========== ========== ==========
Total Return (a) ...................... 2.29% (5.38%) (5.21%) 5.27% (6.76%)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of year ............. $2,231,991 $4,651,157 $9,095,015 $7,476,444 $9,537,019
Ratio of expenses to average
net assets .......................... 1.90% 1.80% 1.86% 1.98% 2.34%
Ratio of net investment income (loss)
to average net assets ............... 2.29% 5.27% (0.92%) (1.66%) (1.13%)
Portfolio turnover .................... -- 159% 51% 39% 87%
</TABLE>
- ----------
(a) Total return information does not take into account any charges paid at the
time of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
FINANCIAL HIGHLIGHTS
THE PARKSTONE ADVANTAGE FUND
FOR THE PERIOD ENDED DECEMBER 31, 1993(a)
<TABLE>
<CAPTION>
PRIME SMALL INTERNATIONAL
OBLIGATIONS BOND EQUITY CAPITALIZATION DISCOVERY
FUND FUND FUND FUND FUND
----------- -------- ------ -------------- -------------
<S> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING
THROUGHOUT THE YEAR
NET ASSET VALUE:
Beginning of Period ................... $1.00 $10.00 $10.00 $10.00 $10.00
----------- ---------- ----------- ---------- ----------
Investment Activities
Net investment income (loss) .......... 0.009 0.10 (0.02) (0.03) (0.03)
Net realized and unrealized gain (loss)
on investments ...................... -- (0.14) 0.19 1.03 0.38
----------- ---------- ----------- ---------- ----------
Total from Investment Activities .. 0.009 (0.04) (0.17) 1.00 0.35
----------- ---------- ----------- ---------- ----------
Distributions
Net investment income ................. (0.009) -- -- -- --
----------- ---------- ----------- ---------- ----------
Net Asset Value, End of Period .......... $1.00 $9.96 $10.17 $11.00 $10.35
=========== ========== =========== ========== ==========
Total Return (c) ...................... 0.88% (0.40%) 1.70% 10.00% 3.50%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period ........... $2,028,251 $3,216,233 $3,893,346 $3,064,765 $6,334,523
Ratio of expenses to average
net assets (b) ...................... 1.79% 2.03% 2.11% 1.87% 2.51%
Ratio of net investment income (loss)
to average net assets (b) ........... 1.53% 5.23% (1.09%) (1.40%) (1.38%)
Ratio of expenses to average
net assets* (b) ..................... -- -- -- 2.23% --
Ratio of net investment loss to
average net assets* (b) ............. -- -- -- (1.76%) --
Portfolio turnover (b) ................ -- 101% 45% 23% 13%
</TABLE>
- ----------
* During the period the investment advisory fee was voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations (September 23, 1993)
(b) Annualized
(c) Total return information does not take into account any charges paid at the
time of purchase and is not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
The Parkstone Advantqage Fund
* Prime Obligations Fund
* Equity Fund
* Small Capialization Fund
* Bond Fund
* International Discovery Fund
NOT FDIC INSURED THIS REPORT IS SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THE
REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED
OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS WHICH
CONTAINS DETAILS CONCERNING THE SALES CHARGES AND
OTHER PERTINENT INFORMATION.
[SDI LOGO]
