<PAGE>
[LOGO OF PARKSTONE ADVANTAGE APPEARS HERE]
Semi-Annual Report
June 30, 1999
Not FDIC Insured
[GRAPHIC APPEARS HERE]
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
<TABLE>
<S> <C>
Message From Your Chairman.................................................. 2
Portfolio Performance Discussion............................................ 3
Statements of Assets and Liabilities........................................ 7
Statements of Operations.................................................... 8
Statements of Changes in Net Assets......................................... 9
Statements of Cash Flows.................................................... 11
Schedules of Portfolio Investments.......................................... 12
Financial Highlights........................................................ 21
Notes to Financial Statements............................................... 25
</TABLE>
1
<PAGE>
Message From Your Chairman
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Dear Shareholders:
The past six months have been a time of transition for the Parkstone Advantage
Fund. As previously reported, due to the merger of National City and First of
America, the investment adviser to the Fund became National City Investment
Management Company ("IMC"), which was formed with many of the talented people
from each predecessor entity.
The accompanying report contains each fund's financial statements, its specific
schedule of portfolio investments, and a detailed discussion of its performance
for the six-month period ended June 30, 1999.
As always, if you have questions or require assistance, please call your
account representative or the Parkstone Advantage Fund Investor Services line
at 1-800-355-4555. We look forward to providing you with consistent investment
management and service to meet your needs now and in the future.
Sincerely,
/s/ Robert D. Neary
Robert D. Neary
Chairman
Parkstone Advantage Fund
[LOGO OF THE PARKSTONE ADVANTAGE APPEARS HERE]
Notice to Shareholders
Please be advised of the following facts about mutual funds:
. Your principal is at risk.
. Not an obligation of First of America or National
City.
. No FDIC coverage.
Distributor: SEI Investments Distribution Company
2
<PAGE>
Portfolio Performance Discussion
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Bond Fund
The past 12 months were a period of extreme volatility in the fixed income
markets. Overall, the management team was pleased with the performance of the
Fund through the end of 1998 although our results for the first six months of
1999 were affected by a difficult market environment. Our strategy was correct
in anticipating that we would benefit from an overweight in Treasuries going
into the third quarter of 1998. Our strategy of longer duration relative to our
benchmark also contributed to our strong performance, at least through the end
of October.
For the six months ended June 30, 1999, the Parkstone Advantage Bond Fund
produced a total return of -2.56%. During the same period, the Salomon Brothers
Broad Bond Index returned -1.39% while the Lehman Aggregate Bond Index returned
- -1.38%. These two indices are similar in composition. We adopted the latter
benchmark during the year mainly to bring more consistency to the group of
indices against which we measure fixed income funds.
The management team began increasing holdings in corporate and mortgage-backed
issues in January, but we approached these moves cautiously. With Brazil facing
economic difficulties and Asia and Russia fresh in our minds, we did not
anticipate that the markets would take the latest crisis in stride. We
continued to increase holdings in these sectors through February, a position
the fund retained to the end of the reporting period.
The Fund currently remains overweighted in spread sectors, slightly favoring
mortgages to corporate bonds. Yields in the corporate market are attractive,
but we prefer to remain defensive in this sector given the current fever for
mergers and acquisitions. AT&T's recent bid to acquire MediaOne, and the amount
of debt it was willing to assume to clinch the deal, points to the event risk
that is part of today's corporate debt market.
As of June 30th, 7.4% of the Fund's net assets were invested in U.S. Treasury
securities, 47.9% in mortgage-backed securities, 29.8% in corporate bonds,
12.9% in asset-backed securities and the remaining in cash eqivalents. As of
the same date, the average maturity of the portfolio's holding was 12.1 years
with an average credit quality of triple-A.*
- -------
*The composition of the Portfolio is subject to change.
/1/The Bond Fund's performance is compared to the Salomon Brothers Broad Bond
Index and the Lehman Brothers Aggregate Bond Index. The Salomon Brothers
Broad Bond Index represents the performance of the overall U.S. bond market.
The Lehman Brothers Aggregate Bond Index is comprised of the Lehman Brothers
Government/Corporate Index and the Lehman Brothers Mortgage-Backed Securities
Index. The indices are unmanaged and do not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Advantage Bond Fund
reflects the deduction of fees for these value-added services. Past
performance is not predictive of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
3
<PAGE>
Portfolio Performance Discussion
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Mid Capitalization Fund
Growth was heavily concentrated in the large cap sector of the market over the
past 12 months. Unfortunately, mid-cap and small-cap stocks suffered as
investors sought refuge from global volatility in a handful of the largest,
most dependable names. Internet stocks provided much of the mid-cap sector's
growth during this period. Frankly, the market showed no sensitivity to
earnings in valuing these companies. Investors seemed willing to pay nearly
anything for strong revenue growth despite generally poor earnings and, in many
cases, heavy losses.
For the six months ended June 30, 1999, the Parkstone Advantage Mid
Capitalization Fund returned 10.64%. For the same period, the S&P 400 Mid Cap
Index/1/ and the Russell Mid Cap Growth Index/1/ returned 6.87% and 14.19%,
respectively. We adopted the latter benchmark on July 1, 1999, because it
better reflects the aggressive-growth orientation of the portfolio.
We remain optimistic that the market will reward our emphasis on mid-cap stocks
that consistently deliver above-average earnings growth. The companies in the
portfolio typically hold dominant positions in their markets and also boast
excellent margins and return on equity. As of June 30, the Russell Mid Cap
Growth Index paid 46.4 times expected 1999 earnings for 22% growth, while we
were paying an average of 38 times earnings for growth of 43%. Although the
portfolio's price-to-earnings ratio is relatively high, we believe that its
potential justifies these numbers.*
Our focus on diversification should serve us well given the likelihood of
rising interest rates. Many of the high-flying Internet companies, which began
to weaken in May, may suffer further in this environment, because higher rates
should push down price-to-earnings ratios. We recently moved the portfolio into
sectors that have been general underperformers over the past few years, because
we believe that they will benefit from an improving global economy. These
investments include companies in the energy, capital goods and industrial
sectors.
The Fund's performance should be helped further by our decision to raise the
market capitalization limit on stocks we can purchase from $5 billion to $10
billion. This increase aligns the Fund with the market's own expanded
definition of mid-cap companies. At the very least, it gives us the freedom to
pursue a larger universe of stocks with above-average growth prospects.
- -------
*The composition of the Portfolio is subject to change.
/1/The Mid Capitalization Fund's performance is being compared to Standard &
Poor's Mid Cap 400 Index and the Russell Mid Cap Growth Index. The Standard &
Poor's Mid Cap 400 Index represents the performance of the mid-cap sector of
the U.S. stock market. The Russell Mid Cap Growth Index is comprised of
securities in the Russell Mid Cap Index with a greater than average price-to-
book ratios and higher forecasted growth values. The indices are unmanaged
and do no reflect the deduction of fees associated with a mutual fund, such
as investment management and fund accounting fees. The performance of the
Parkstone Advantage Mid Capitalization Fund reflects the deduction of fees
for these valued-added services. Past performance is not predictive of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
4
<PAGE>
Portfolio Performance Discussion
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Small Capitalization Fund+
During the six months ending June 30, 1999, the market for small cap growth
stocks experienced two distinctly separate fates. During the first quarter of
1999, performance was almost exclusively concentrated in relatively few stocks,
which exhibited very strong revenue growth, but no profitability. Most of these
stocks were related to the Internet in some way. The sizzling performance of
Internet stocks was insufficient to overcome the poor performance of the
broader small cap market, causing the Russell 2000 Growth Index/1/ to
underperform the larger cap S&P 500 Index/2/ by more than 6.75 percentage
points through March 31, 1999.
However, early in the second quarter (April 13th to be precise), the Internet
stocks peaked and began a serious correction that extended through the second
quarter. The broader small cap market also reversed the first quarter trend by
showing much improved performance. In fact, strength in the broader market
overpowered the declining internet stocks, allowing the Russell 2000 Growth
Index to rise 14.75% during the second quarter, significantly outperforming the
S&P 500 Index which rose 5.08%.
The fortunes of the Parkstone Advantage Small Cap Fund fluctuated with the
changes in the character of the small cap market described above. The Fund
materially underperformed the Russell 2000 Growth Index through mid April as
many of the Internet stocks which outperformed were too large to be included in
the Fund, according to existing Fund guidelines. However, from mid April on, as
the market broadened, the improvement in the Fund's relative performance
accelerated throughout the quarter. For the six months ended June 30, 1999, the
Fund produced a return of -6.35% compared to 9.28% and 12.82% for the Russell
2000 Stock Index/1/ and Russell 2000 Growth Index, respectively. We adopted the
latter index during the current period to reflect the Fund's bias toward growth
stocks.
The Fund also refined its internal guidelines to permit ownership of stocks
above $3 billion in market cap, provided they are components of the Russell
2000 Growth benchmark. Other risk control features were implemented during the
first six months of 1999, including limits imposed on sector exposure. The Fund
also increased the number of stocks in the portfolio by nearly 40% compared to
the beginning of the year. These changes should reduce the Fund's performance
volatility relative to the benchmark.*
While the stock market has been in a mild correction since mid July, our
outlook for small cap stocks remains fairly constructive for the rest of 1999.
We believe that a stronger global economy makes investors more tolerant of the
risk associated with small cap growth stocks. With interest rates now somewhat
higher than the beginning of the year, it is not wise to expect the stock
market to be lifted by expanding valuations, however the strong earnings growth
which we expect could allow the market to move higher during the remainder of
the year. Our philosophy of focusing on companies with above average, high
quality, sustainable earnings growth should fair well in this environment.
- -------
* The composition of the Portfolio is subject to change.
+ Small-capitalization funds typically carry additional risks, since smaller
companies generally have a higher risk of failure and historically, their
stocks have experienced a greater degree of market volatility than stocks on
average.
/1/The Small Capitalization Fund's performance is compared to the Russell 2000
Growth Index and the Russell 2000 Stock Index. The Russell 2000 Growth Index
represents the performance of securities in the Russell 2000 Stock Index with
a greater-than-average growth orientation. The Russell 2000 Stock Index
represents the performance of domestically traded common stocks of small to
mid-sized companies. The indices are unmanaged and do not reflect the
deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Parkstone
Advantage Small Capitalization Fund reflects the deduction of fees for these
value-added services.
/2/The Standard & Poor's 500 Stock Index represents the performance of the U.S.
stock market as a whole. The index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. Past performance is not predictive of
future results. The investment return and NAV will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
5
<PAGE>
Portfolio Performance Discussion
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
International Discovery Fund+
For the six months ended June 30, 1999, the Parkstone Advantage International
Discovery Fund produced a total return of 5.50%. Over the same period, the
Fund's benchmark, the Morgan Stanley Europe, Australasia and Far East (EAFE)
Index/1/, returned a total of 3.97%.
As the world economy improved, we shifted our holdings into more cyclical
growth stocks located in the Pacific Rim. This was increasingly rewarded by the
markets as the period progressed.*
Looking ahead, we find the Hong Kong and Singapore markets attractively valued
despite impressive returns year-to-date. Economic conditions are improving as
current account balances have turned positive. These surpluses have allowed
central banks to ease interest rates without causing currency devaluations and
permitted governments to finance fiscal stimulus programs. We believe that the
improvement in economic conditions needs to be followed up by reforms in order
for wealth creation to continue, and we are cautiously optimistic that such
reforms will take place.
Likewise, certain European markets are attractive. The accession rates for
adopting the euro have left some countries with a competitive advantage over
others. Likewise, some countries are simply more sound fiscally. We believe
that these imbalances will have a persistent effect on the differences in
economic growth rates within the region. In particular, it is our opinion that
markets such as France and the Netherlands are poised to enjoy stronger growth,
while Germany and Italy may suffer.
Japan is in the early stages of structural reform. While reforms may depress
economic growth near term, we believe conditions for wealth creation have
greatly improved. We have increased our exposure to companies poised to benefit
from these changes.
- -------
* The composition of the Portfolio is subject to change.
+ International investing is subject to certain risk factors such as currency
exchange-rate volatility, possible political, social or economic
instability, foreign taxation and/or differences in accounting and other
financial standards.
/1/The International Discovery Fund's performance is compared to the Morgan
Stanley Capital International Europe, Australasia and Far East (EAFE) Index,
which represents the performance of the major stock markets in those regions.
The index is unmanaged and does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees.
The performance of the Parkstone Advantage International Discovery Fund
reflects the deduction of fees for these value-added services. Past
performance is not predictive of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
6
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Mid Small International
Bond Capitalization Capitalization Discovery
Fund Fund Fund Fund
----------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments in
securities, at value
(Cost $10,582,162,
$18,917,567,
$11,730,717 and
$13,784,845
respectively).......... $10,319,010 $25,016,327 $15,046,035 $16,509,455
Repurchase agreements,
at cost................ -- 4,734,800 1,554,800 --
----------- ----------- ----------- -----------
Total Investments....... 10,319,010 29,751,127 16,600,835 16,509,455
Cash.................... -- 452 -- --
Foreign currency (Cost
$0; $0; $0 and $3,485,
respectively).......... -- -- -- 3,487
Interest and dividends
receivable............. 100,107 9,458 3,677 20,718
Reclaim receivable...... -- -- -- 9,478
Receivable for
investments sold....... -- 355,581 933,258 124,846
Prepaid expenses and
other assets........... 55 113 31 500
----------- ----------- ----------- -----------
Total Assets............ 10,419,172 30,116,731 17,537,801 16,668,484
----------- ----------- ----------- -----------
Liabilities:
Payable for foreign
forward currency
contracts.............. -- -- -- 7,824
Payable for return of
collateral received for
securities on loan..... -- 4,743,800 1,304,800
Payable for investments
purchased.............. 54,754 295,639 331,802 98,272
Accrued expenses and
other payables:
Investment advisory
fees................. 7,490 23,544 14,690 19,734
Administration fees... 1,728 4,034 2,523 2,718
Other................. 5,294 5,962 4,385 14,324
----------- ----------- ----------- -----------
Total Liabilities....... 69,266 5,072,979 1,658,200 142,872
----------- ----------- ----------- -----------
Net Assets:
Capital................. 9,768,183 13,992,221 12,900,018 10,569,532
Undistributed net
investment income
(loss)................. 910,146 (125,079) (84,962) (92,158)
Net unrealized
appreciation from
investments and
translation of assets
and liabilities in
foreign currencies..... (263,152) 6,098,760 3,315,318 2,715,368
Undistributed net
realized gain (loss)
from investment and
foreign currency
transactions........... (65,271) 5,086,850 (250,773) 3,332,870
----------- ----------- ----------- -----------
Net Assets.............. $10,349,906 $25,052,752 $15,879,601 $16,525,612
=========== =========== =========== ===========
Outstanding units of
beneficial interest
(shares)............... 972,694 1,442,060 1,016,262 1,132,713
=========== =========== =========== ===========
Net asset value--
redemption price per
share.................. $ 10.64 $ 17.37 $ 15.63 $ 14.59
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
7
<PAGE>
Statement of Operations
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund For the Six Months Ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Mid Small International
Bond Capitalization Capitalization Discovery
Fund Fund Fund Fund
--------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income......... $ 361,308 $ 10,596 $ 14,620 $ --
Dividend income......... 6,034 60,136 31,714 162,736
Securities lending
income................. -- 6,162 8,297 --
Foreign tax withholding. -- -- -- (19,635)
--------- ----------- ----------- -----------
Total Income.......... 367,342 76,894 54,631 143,101
--------- ----------- ----------- -----------
Expenses:
Investment advisory
fees................... 42,772 133,829 87,956 108,472
Administration fees..... 11,560 26,766 17,591 17,356
Custodian and accounting
fees................... 11,499 12,995 11,415 29,332
Legal and audit fees.... 6,091 11,323 8,571 8,365
Trustees' fees and
expenses............... 32 84 75 104
Transfer agent fees..... 8,304 8,180 8,240 8,370
Printing costs.......... 4,299 8,650 5,219 5,906
Other................... 64 146 526 1,054
--------- ----------- ----------- -----------
Total Expenses........ 84,621 201,973 139,593 178,959
--------- ----------- ----------- -----------
Net Investment Income
(Loss)................. 282,721 (125,079) (84,962) (35,858)
--------- ----------- ----------- -----------
Realized/Unrealized Gain
(Loss) From Investments
and Foreign Currencies:
Net realized gain (loss)
from investment and
foreign currency
transactions........... (152,412) 3,883,439 (910,111) 2,845,832
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... (425,507) (1,089,749) (782,662) (1,898,746)
--------- ----------- ----------- -----------
Net realized/unrealized
gain (loss) from
investments and foreign
currencies............. (577,919) 2,793,690 (1,692,773) 947,086
--------- ----------- ----------- -----------
Change in net assets
resulting from
operations............. $(295,198) $ 2,668,611 $(1,777,735) $ 911,228
========= =========== =========== ===========
</TABLE>
See notes to financial statements.
8
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund
<TABLE>
<CAPTION>
Bond Fund Mid Capitalization Fund
----------------------------- -----------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
---------------- ------------ ---------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 282,721 $ 618,882 $ (125,079) $ (288,246)
Net realized gain
(loss) from investment
transactions.......... (152,412) 259,379 3,883,439 1,267,121
Net change in
unrealized
appreciation
(depreciation) from
investments........... (425,507) (47,262) (1,089,749) 1,838,391
----------- ----------- ----------- -----------
Change in net assets
resulting from
operations............. (295,198) 830,999 2,668,611 2,817,266
----------- ----------- ----------- -----------
Distributions to
Shareholders:
From net investment
income................ -- (580,827) -- --
----------- ----------- ----------- -----------
Change in net assets
from shareholder
distributions.......... -- (580,827) -- --
----------- ----------- ----------- -----------
Capital Transactions:
Proceeds from shares
issued................ 770,193 2,788,064 1,105,635 3,568,570
Dividends reinvested... -- 579,829 -- --
Cost of shares
redeemed.............. (2,462,779) (3,136,562) (7,787,121) (8,379,388)
----------- ----------- ----------- -----------
Change in net assets
from shares
transactions........... (1,692,586) 231,331 (6,681,486) (4,810,818)
----------- ----------- ----------- -----------
Change in net assets.... (1,987,784) 481,503 (4,012,875) (1,993,552)
Net Assets:
Beginning of period.... 12,337,690 11,856,187 29,065,627 31,059,179
----------- ----------- ----------- -----------
End of period.......... $10,349,906 $12,337,690 $25,052,752 $29,065,627
=========== =========== =========== ===========
Capital Share
Transactions:
Issued................. 71,061 256,482 68,665 238,482
Reinvested............. -- 53,688 -- --
Redeemed............... (228,356) (287,797) (478,168) (570,247)
----------- ----------- ----------- -----------
Change in shares....... (157,295) 22,373 (409,503) (331,765)
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
9
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Small Capitalization Fund International Discovery Fund
----------------------------- -----------------------------
Six Months Ended Six Months Ended
June 30, Year Ended June 30, Year Ended
1999 December 31, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
From Investment Activi-
ties:
Operations:
Net investment income
(loss)................ $ (84,962) $ (275,595) $ (35,858) $ (123,209)
Net realized gain
(loss) from investment
transactions and for-
eign currency transac-
tions................. (910,111) 1,353,803 2,845,832 451,159
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... (782,662) (1,787,796) (1,898,746) 1,691,839
------------ ------------ ------------ ------------
Change in net assets re-
sulting from opera-
tions.................. (1,777,735) (709,588) 911,228 2,019,789
------------ ------------ ------------ ------------
Distributions to Share-
holders:
From net realized gains
from investment trans-
actions............... -- -- -- (80,360)
------------ ------------ ------------ ------------
Change in net assets
from shareholder dis-
tributions............. -- -- -- (80,360)
------------ ------------ ------------ ------------
Capital Transactions:
Proceeds from shares
issued................ 1,262,459 3,284,718 422,884 1,560,022
Dividends reinvested... -- -- -- 80,171
Cost of shares re-
deemed................ (6,059,273) (6,981,452) (3,179,525) (3,992,958)
------------ ------------ ------------ ------------
Change in net assets
from shares transac-
tions.................. (4,796,814) (3,696,734) (2,756,641) (2,352,765)
------------ ------------ ------------ ------------
Change in net assets.... (6,574,549) (4,406,322) (1,845,413) (413,336)
Net Assets:
Beginning of period.... 22,454,150 26,860,472 18,371,025 18,784,361
------------ ------------ ------------ ------------
End of period.......... $ 15,879,601 $ 22,454,150 $ 16,525,612 $ 18,371,025
============ ============ ============ ============
Capital Share Transac-
tions:
Issued................. 86,302 197,881 29,928 118,297
Reinvested............. -- -- -- 5,614
Redeemed............... (415,549) (421,252) (225,517) (306,047)
------------ ------------ ------------ ------------
Change in shares....... (329,247) (223,371) (195,589) (182,136)
============ ============ ============ ============
</TABLE>
See notes to financial statements.
10
<PAGE>
Statement of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund For the Six Months Ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Mid Small
Capitalization Capitalization
Fund Fund
-------------- --------------
<S> <C> <C>
Cash Flows from Operating Activities:
Total net investment income (loss)............. $ (125,079) $ (84,962)
Adjustments to reconcile net investment income
(loss) to net cash provided (used) by operating
activities:
Purchases of investments....................... (73,094,954) (88,095,118)
Proceeds from disposition of investment securi-
ties.......................................... 79,885,558 92,971,570
Decrease (increase) in investments purchased
with cash collateral from securities lending.. 2,515,625 2,029,700
Decrease (increase) in dividends and interest
receivable.................................... 7,159 1,732
Increase (decrease) in payable for return of
collateral received from securities lending... (2,515,625) (2,029,700)
Increase (decrease) in accrued expenses and
other assets.................................. 11,251 5,569
Net amortization/accretion from investments.... (1,997) (1,977)
------------ ------------
Net cash provided (used) by operating
activities................................... 6,681,938 4,796,814
------------ ------------
Cash Flows from Financing Activities:
Proceeds from shares issued.................... 1,105,635 1,262,459
Payment of shares redeemed..................... (7,787,121) (6,059,273)
Cash distributions paid........................ -- --
------------ ------------
Net cash provided (used) by financing
activities................................... (6,681,486) (4,796,814)
Cash:
Beginning balance.............................. -- --
------------ ------------
Ending balance................................. $ 452 $ --
============ ============
</TABLE>
See notes to financial statements.
11
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Bond Fund
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Treasury Notes (5.7%):
$ 300,000 5.75%, 11/15/00....................................... $ 301,347
225,000 5.75%, 8/15/03........................................ 224,575
50,000 6.13%, 8/15/07........................................ 50,553
10,000 6.25%, 10/31/01....................................... 10,135
-----------
Total U.S. Treasury Notes 586,610
-----------
U.S. Treasury Bonds (1.7%):
170,000 6.25%, 8/15/23........................................ 170,828
-----------
Total U.S. Treasury Bonds 170,828
-----------
Government Obligations (10.0%):
Government National Mortgage Association (10.0%):
179,845 6.50%, 9/15/23........................................ 173,212
399,290 6.50%, 4/15/29........................................ 384,564
80,000 6.50%, 5/15/29........................................ 77,050
390,647 7.50%, 8/15/25........................................ 395,042
-----------
Total Government Obligations 1,029,868
-----------
Government Agencies (24.6%):
Fannie Mae (23.7%):
247,469 6.00%, 8/1/28......................................... 232,621
377,751 6.00%, 8/1/28......................................... 355,086
498,339 6.00%, 3/1/29......................................... 468,439
69,373 6.50%, 2/1/28......................................... 67,010
495,580 6.50%, 8/1/28......................................... 478,696
258,847 6.50%, 11/1/28........................................ 250,028
174,819 6.50%, 11/30/28....................................... 168,863
228,792 6.50%, 5/1/29......................................... 220,997
221,327 7.00%, 9/1/27......................................... 218,974
-----------
2,460,714
-----------
Freddie Mac (0.9%):
100,000 7.00%, 11/1/28........................................ 99,093
-----------
Total Government Agencies 2,559,807
-----------
Corporate Bonds (29.8%):
Automotive (0.8%):
100,000 Ford Motor Company, 6.38%, 2/1/29..................... 87,250
Banking (2.1%):
95,000 Citicorp, 6.38%, 11/15/08............................. 90,725
70,000 First Union National Bank, 6.65%, 4/15/09............. 68,560
55,000 HSBC Holding PLC., 7.50%, 7/15/09..................... 54,754
-----------
214,039
-----------
Consumer Goods & Services (1.4%):
150,000 American Greetings, 6.10%, 8/1/28..................... 140,438
-----------
Electrical & Electronic (0.3%):
30,000 Arrow Electronic, Inc., 6.88%, 6/1/18................. 28,725
Financial Services (4.4%):
250,000 Countrywide Home, 6.84%, 10/22/04..................... 250,000
75,000 Ford Motor Credit, 6.00%, 1/14/03..................... 73,781
125,000 General Electric Capital Corp., 7.62%, 5/8/00......... 127,201
-----------
450,982
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Industrials (9.4%):
$ 350,000 Computer Assoc. International, 6.25%, 4/15/03........ $ 339,062
125,000 Cummins Engine, Inc., 6.45%, 3/1/05.................. 119,375
120,000 Lubrizol Corp., 5.88%, 12/1/08....................... 110,250
95,000 Monsanto Co., 5.38%, 12/1/01......................... 93,100
75,000 Motorola, Inc., 7.50%, 5/15/25....................... 75,750
250,000 Times Mirror Co., 6.61%, 9/15/27..................... 249,599
-----------
987,136
-----------
Metals (1.5%):
160,000 Worthington Industries, 7.13%, 5/15/06............... 157,600
-----------
Oil & Gas (1.4%):
140,000 Amoco Canada, 6.75%, 2/15/05......................... 141,750
-----------
Real Estate Investment Trust (2.6%):
30,000 Avalon Bay Communities, 6.58%, 2/15/04............... 29,100
125,000 Commercial Net Lease Realty, 8.13%, 6/15/04.......... 124,063
75,000 Simon Debartolo Property Group, Inc., 6.63%, 6/15/03. 71,156
50,000 Simon Debartolo Property Group, Inc., 6.75%, 2/9/04.. 48,625
-----------
272,944
-----------
Resorts & Entertainment (2.5%):
100,000 Brunswick, Corp., 6.75%, 12/15/06.................... 95,875
150,000 Time Warner Entertainment, 9.63%, 5/1/02............. 161,813
-----------
257,688
-----------
Telecommunications (3.4%):
120,000 AT&T Corp., 6.50%, 3/15/29........................... 108,600
115,000 Cable & Wireless Communication, Inc., 6.75%, 12/8/08. 111,119
-----------
145,000 Sprint Capital Corp., 6.88%, 11/15/28................ 132,493
-----------
Total Corporate Bonds 3,090,764
-----------
Asset Backed Securities (12.9%):
100,000 Advanta Mortgage Loan Trust, 6.89%, 5/25/29.......... 98,901
107,395 Banc One Auto Grantor Trust, 6.27%, 11/20/03......... 108,195
315,000 Discover Card Master Trust, 6.05%, 8/18/08........... 307,387
160,000 First Security Auto Owner Trust, Series 1991-1, Class
A4, 5.74%, 6/15/04.................................. 157,714
110,000 General Electric Capital Mortgage Services, Inc.,
Series 1999-He1, Class A4, 6.19%, 1/25/23........... 108,884
40,362 Green Tree Financial Corp., 6.90%, 4/15/19........... 40,644
200,000 IMC Home Equity Loan Trust, Series 1997-7, Class A-5,
6.76%, 10/20/20..................................... 200,637
</TABLE>
Continued
12
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Bond Fund
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Asset Backed Securities, continued:
$ 100,000 New Century Home Equity Loan Trust, 7.01%, 05/25/26.. $ 99,383
100,000 New Century Home Equity Trust, 7.22%, 11/25/27....... 100,031
110,000 RASC, Series 1999-KS2, Class AI4, 6.80%, 9/25/23..... 110,206
-----------
Total Asset Backed Securities 1,331,982
-----------
Mortgage-backed Securities (13.3%):
235,000 Credit Suisse First Boston Mortgage Passthrough,
Series 1997-C1, Class A1c, 7.24%, 4/20/07........... 235,435
84,646 General Electric Capital Mortgage Services, Inc.,
Series 1999-1, Class A1, 6.50%, 1/25/29............. 80,224
99,530 Heller Financial Commercial Mortgage Services, Inc.,
Series 1999-Ph1, Class A-1, 6.50%, 5/15/31.......... 98,684
190,000 Morgan Stanley Capital Inc., 6.53%, 3/15/32.......... 184,787
140,000 Morgan Stanley Capital Inc., Class A2, 6.71%,
12/15/31............................................ 137,972
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Mortgage-backed Securities, continued:
$ 174,832 PNC Mortgage Securities Corp., Series 1998-7, Class
1a5, 6.75%, 9/25/28................................. $ 166,353
128,193 Prudential Securities Secured Financing Corp., Series
1999-Nrf1, Class A1, 6.07%, 1/15/08................. 124,815
269,416 Residential Accredit Loans, Inc., Series 1999-Qs3,
Class A8, 6.50%, 3/25/29............................ 251,987
100,000 Residential Funding Mortgage, Inc., Series 1998-S13,
Class A-21, 6.75%, 6/25/28.......................... 95,218
1,367 Structured Assets Securities Co., 7.50%, 8/25/26..... 1,365
-----------
Total Mortgage-backed Securities 1,376,840
-----------
CASH EQUIVALENTS (1.7%):
172,311 Goldman Sachs Financial Square Premium............... 172,311
-----------
Total Cash Equivalents 172,311
-----------
Total Investments (Cost $10,582,162) (a)--99.7% 10,319,010
Other assets in excess of liabilities--0.3% 30,896
-----------
Total Net Assets--100.0% $10,349,906
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 33,708
Unrealized depreciation..................................... (296,860)
---------
Net unrealized depreciation................................. ($263,152)
=========
</TABLE>
See notes to financial statements.
13
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Mid Capitalization Fund
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks (98.5%):
Advertising (1.7%):
11,700 Valassis Communications, Inc. ........................ $ 428,513
Air Transportation (1.7%):
12,450 Comair Holdings, Inc. ................................ 259,115
2,600 Gulfstream Aerospace Corp.(b)......................... 175,663
-----------
434,778
-----------
Appliances & Household Products (0.6%):
2,300 Maytag................................................ 160,281
-----------
Banking (2.7%):
5,500 First Tennessee National Corp.(c)..................... 210,719
5,040 Old Kent Financial Corp. ............................. 211,050
4,000 Zions Bancorporation(c)............................... 254,000
-----------
675,769
-----------
Beverages & Tobacco (2.2%):
5,400 Canandaigua Wine Co., Class A(b)...................... 283,163
5,600 Coors (Adolph), Class B............................... 277,200
-----------
560,363
-----------
Broadcasting & Publishing (3.8%):
6,400 Cablevision Systems(b)(c)............................. 448,000
5,300 Chancellor Media Corp.(b)(c).......................... 292,163
3,200 Univision Communications, Inc.(b)(c).................. 211,200
-----------
951,363
-----------
Business Services (3.0%):
3,800 Cintas Corp.(c)....................................... 255,312
2,400 Northpoint Communications(b).......................... 87,600
4,770 Paychex, Inc. ........................................ 152,044
7,200 SunGard Data Systems, Inc.(b)(c)...................... 248,400
-----------
743,356
-----------
Computer Hardware (1.6%):
6,000 Lexmark International Group, Inc.(b).................. 396,375
-----------
Computer Services (3.1%):
2,292 At Home Corp., Series A(b)............................ 123,625
1,600 Exodus Communications, Inc.(b)(c)..................... 191,900
6,400 International Network Services(b)..................... 258,400
1,201 Yahoo! Inc.(b)........................................ 206,831
-----------
780,756
-----------
Computer Software & Peripherals (3.0%):
3,200 Citrix Systems, Inc.(b)............................... 180,800
1,100 Inktomi Corp.(b)...................................... 144,650
3,900 Legato Systems, Inc.(b)............................... 225,225
2,000 VERITAS Software Corp.(b)............................. 189,875
-----------
740,550
-----------
Data Processing & Reproduction (1.5%):
12,150 Fiserv, Inc.(b)....................................... 380,447
-----------
Diversified Operation (1.0%):
3,700 Corning, Inc. ........................................ 259,463
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued:
Electric Utility (1.6%):
7,000 AES Corp.(b).......................................... $ 406,875
-----------
Electrical & Electronic (3.7%):
6,600 Gentex Corp.(b)....................................... 184,800
3,100 Jabil Circuit, Inc.(b)................................ 139,888
3,300 Sanmina Corp.(b)...................................... 250,388
5,200 Solectron Corp.(b).................................... 346,774
-----------
921,850
-----------
Environmental Services (0.5%):
2,800 Browning-Ferris Industries, Inc. ..................... 120,400
-----------
Financial Services (4.1%):
7,200 Capital One Financial Corp. .......................... 400,950
1,800 Charles Schwab Corp.(c)............................... 197,775
4,600 Providian Financial................................... 430,100
-----------
1,028,825
-----------
Food Products & Services (3.5%):
8,600 Tricon Global Restaurants(b).......................... 465,475
9,500 U.S. Foodservice(b)................................... 404,938
-----------
870,413
-----------
Health Care--Services (3.8%):
7,800 Medquist, Inc.(b)..................................... 341,250
17,600 Oxford Health(b)...................................... 273,900
3,900 Wellpoint Health Networks(b).......................... 331,013
-----------
946,163
-----------
Industrial Goods & Services (1.6%):
5,700 Ecolab, Inc. ......................................... 248,663
2,300 Nordson............................................... 140,875
-----------
389,538
-----------
Insurance (4.7%):
7,500 AFLAC, Inc. .......................................... 359,063
8,600 Nationwide Financial Services, Inc. .................. 389,150
3,000 Progressive Corporation............................... 435,000
-----------
1,183,213
-----------
Motorcycles (0.6%):
2,800 Harley-Davidson, Inc. ................................ 152,250
-----------
Oil & Gas Exploration, Production & Services (3.1%):
3,500 Anadarko Petroleum Corp. ............................. 128,844
10,500 Apache Corp. ......................................... 409,500
7,000 Baker Hughes.......................................... 234,500
-----------
772,844
-----------
Pharmaceuticals (6.2%):
1,400 Allergan(c)........................................... 155,400
9,000 Biogen, Inc.(b)....................................... 578,812
10,900 Forest Laboratories, Inc.(b).......................... 504,125
4,500 Medimmune, Inc.(b)(c)................................. 304,875
-----------
1,543,212
-----------
</TABLE>
Continued
14
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Mid Capitalization Fund
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued:
Retail (13.9%):
12,000 Abercrombie & Fitch(b)................................ $ 576,000
3,400 American Eagle Outfitters(b).......................... 154,700
7,100 Best Buy Company, Inc.(b)............................. 479,250
9,300 BJ's Wholesale Club, Inc.(b).......................... 279,581
600 Etoys, Inc.(b)(c)..................................... 24,450
25,800 Family Dollar Stores.................................. 619,199
6,700 Linens 'N Things, Inc.(b)............................. 293,125
12,400 Office Depot, Inc.(b)................................. 273,575
5,400 Ross Stores, Inc. .................................... 272,025
7,800 Tandy, Inc. .......................................... 381,225
3,400 The Children's Place(b)(c)............................ 137,700
-----------
3,490,830
-----------
Semiconductors (9.4%):
10,200 Altera Corp.(b)....................................... 375,488
5,400 KLA Instruments Corp.(b).............................. 350,325
5,400 PMC-Sierra, Inc.(b)................................... 318,263
5,500 Teradyne, Inc.(b)..................................... 394,625
7,100 Vitesse Semiconductor Corp.(b)(c)..................... 478,805
7,600 Xilinx, Inc.(b)....................................... 435,099
-----------
2,352,605
-----------
Technology (6.1%):
3,500 Electronics for Imaging, Inc.(b)...................... 179,813
10,400 Gemstar International Group Ltd.(b)................... 678,599
12,600 Symbol Technologies, Inc. ............................ 464,625
1,200 Uniphase Corp.(b)..................................... 199,200
-----------
1,522,237
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ---------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Telecommunications--Services & Equipment (9.8%):
17,450 Centurytel, Inc. ................................... $ 693,637
6,950 Comverse Technology, Inc.(b)........................ 524,724
6,200 Frontier Corp.(c)................................... 365,800
4,200 Plantronics, Inc.(b)................................ 273,525
9,500 Qwest Communications International, Inc.(b)(c)...... 314,094
3,700 RF Micro Devices, Inc.(b)........................... 276,113
-----------
2,447,893
-----------
Total Common Stocks 24,661,162
-----------
Cash Equivalents (1.4%):
355,165 Goldman Sachs Financial Square Premium.............. 355,165
-----------
Total Cash Equivalents 355,165
-----------
Short Term Securities held as collateral (18.9%):
Repurchase Agreements (18.9%):
$4,734,800 Bear Stearns & Co. Triparty Agreement, 6.10%,
7/1/99, (See Significant Accounting Policies,
Lending Portfolio Securities in the Notes to
Financial Statements for collateral description)... 4,734,800
-----------
Total Short Term Securities Held as Collateral 4,734,800
-----------
Total Investments (Cost $23,652,367)(a)--118.8% 29,751,127
Other assets in excess of liabilities--(18.8)% (4,698,375)
-----------
Total Net Assets--100.0% $25,052,752
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................... $6,435,853
Unrealized depreciation.................................... (337,093)
----------
Net unrealized appreciation................................ $6,098,760
==========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at June 30, 1999.
See notes to financial statements.
15
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Small Capitalization Fund
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (90.7%):
Advertising (1.1%):
4,800 Valassis Communications, Inc.(b)....................... $ 175,800
-----------
Apparel/Shoes (0.6%):
1,900 K-Swiss, Inc., Class A................................. 88,350
-----------
Automotive (2.6%):
9,950 Gentex Corp.(b)........................................ 278,600
6,600 Wabash National Corp................................... 127,875
-----------
406,475
-----------
Banking (1.6%):
3,600 Cullen/Frost Bankers, Inc.............................. 99,225
19,400 Republic Security Financial Corp....................... 162,475
-----------
261,700
-----------
Business Services (5.6%):
2,287 Corporate Executive Board Corp.(b)..................... 81,331
4,600 Diamond Technology Partners, Inc.(b)................... 102,925
2,850 FYI, Inc.(b)........................................... 89,419
3,900 NOVA Corp.(b)(c)....................................... 97,500
4,400 Onesource Information Services, Inc.(b)................ 38,500
7,400 Online Resources & Commmunication Corp, Inc.(b)(c)..... 100,363
2,800 QRS Corp.(b)........................................... 218,399
4,700 Sykes Enterprises, Inc.(b)............................. 156,863
-----------
. 885,300
-----------
Chemicals (1.5%):
5,000 MacDermid, Inc......................................... 232,500
-----------
Computer Services (3.7%):
2,500 Infospace.Com, Inc.(b)................................. 117,500
2,300 Intervu, Inc.(b)....................................... 88,119
5,600 National Data Corp..................................... 239,400
2,000 Pegasus Systems, Inc.(b)............................... 74,875
1,200 Safeguard Scientifics, Inc.(b)......................... 74,400
-----------
594,294
-----------
Computer Software & Peripherals (5.8%):
5,500 Ardent Software, Inc.(b)............................... 116,875
3,800 Macrovision Corp.(b)................................... 284,524
2,100 Mercury Interactive Corp.(b)........................... 74,288
3,200 Micromuse, Inc.(b)..................................... 159,600
3,500 National Computer Systems, Inc......................... 118,125
1,700 Security First Technologies(b)......................... 76,713
5,000 Unigraphics Solutions, Inc.(b)......................... 93,750
-----------
923,875
-----------
Construction Equipment (0.8%):
3,300 Astec Industries, Inc.................................. 134,475
-----------
Consumer Goods & Services (1.0%):
5,400 JAKKS Pacific, Inc.(b)................................. 160,988
-----------
Electric Utilities (1.1%):
3,350 Calpine Corp.(b)....................................... 180,900
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Electronic Components/Instruments (5.0%):
4,800 CTS Corp............................................... $ 336,000
6,400 Dll Group, Inc.(b)..................................... 238,800
2,650 Optical Coating Laboratory, Inc........................ 221,606
-----------
796,406
-----------
Environmental Services (1.1%):
6,800 Casella Waste Systems, Inc., Series A(b)............... 176,800
-----------
Financial Services (4.5%):
4,700 Affiliated Managers Group(b)........................... 141,881
5,400 Healthcare Financial Partners, Inc.(b)................. 184,950
8,000 Metris Cos., Inc....................................... 326,000
3,300 Prism Financial Corp., Inc.(b)(c)...................... 67,444
-----------
720,275
-----------
Health Care--Services (5.7%):
11,800 Hooper Holmes, Inc..................................... 240,425
3,168 Laser Vision Centers, Inc.(b).......................... 199,584
4,700 Medquist, Inc.(b)...................................... 205,625
7,500 Priority Healthcare Corp., Class B(b).................. 258,750
-----------
. 904,384
-----------
Home Building (0.5%):
6,400 Standard Pacific Corp.................................. 82,800
-----------
Home Furnishings (1.9%):
5,400 Ethan Allen Interiors, Inc............................. 203,850
3,900 Trex Co., Inc.(b)...................................... 98,963
-----------
302,813
-----------
Insurance (1.3%):
4,700 Annuity & Life Re...................................... 105,456
10,000 Scottish Annuity & Life Holdings....................... 107,500
-----------
212,956
-----------
Leisure (0.7%):
3,000 Cheap Tickets, Inc.(b)................................. 109,500
-----------
Machinery & Equipment (1.2%):
10,500 MotivePower Industries, Inc.(b)........................ 186,375
-----------
Manufacturing--Consumer Goods (1.4%):
5,100 Monaco Coach Corp.(b).................................. 215,794
-----------
Manufacturing--Industrial Goods (0.9%):
6,900 Mobile Mini, Inc.(b)................................... 134,981
-----------
Medical Equipment & Supplies (3.4%):
5,100 Biomatrix, Inc.(b)(c).................................. 110,288
5,700 Colorado Medtech, Inc.(b).............................. 125,044
1,490 Datascope(b)........................................... 47,866
1,950 Minimed, Inc.(b)(c).................................... 150,027
1,400 Visx, Inc.(b).......................................... 110,863
-----------
544,088
-----------
Metals & Mining (0.8%):
3,780 Stillwater Mining Co.(b)............................... 123,559
-----------
</TABLE>
Continued
16
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
Small Capitalization Fund
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Oilfield Services & Equipment (0.6%):
3,400 Cal Dive International, Inc.(b)........................ $ 101,575
-----------
Pharmaceuticals (3.8%):
2,750 Alpharma, Inc., Class A(c)............................. 97,797
3,100 Chirex, Inc.(b)........................................ 99,588
1,900 Enzon, Inc.(b)......................................... 39,306
4,600 Geltex Pharmaceuticals, Inc.(b)(c)..................... 82,800
2,500 Gliatech, Inc.(b)...................................... 63,750
8,300 King Pharmaceuticals, Inc.(b).......................... 214,762
-----------
598,003
-----------
Radio (1.5%):
4,500 Citadel Communications Corp.(b)........................ 162,844
3,400 Cumulus Media, Inc., Class A(b)........................ 74,375
-----------
237,219
-----------
Resorts & Entertainment (1.0%):
4,200 Premier Parks, Inc.(b)................................. 154,350
-----------
Restaurants (1.1%):
6,000 Foodmaker, Inc.(b)..................................... 170,250
-----------
Retail (3.1%):
3,000 Ames Department Stores, Inc.(b)........................ 136,875
4,100 BJ's Wholesale Club, Inc. (b).......................... 123,256
900 Cost Plus, Inc.(b)..................................... 40,950
4,800 The Children's Place(b)(c)............................. 194,400
-----------
495,481
-----------
Semiconductors (9.8%):
9,800 Aeroflex, Inc.(b)...................................... 193,550
2,400 Applied Micro Circuits Corp.(b)........................ 197,400
5,344 ATMI, Inc.(b).......................................... 158,984
3,900 Burr-Brown Corp.(b).................................... 142,838
4,400 Credence Systems Corp.(b).............................. 163,350
4,917 Cymer, Inc.(b)......................................... 122,925
2,800 Photronics, Inc.(b).................................... 68,600
1,850 PMC-Sierra, Inc.(b).................................... 109,034
2,700 PRI Automation(b)(c)................................... 97,875
3,900 SDL, Inc.(b)........................................... 199,143
2,300 Transwitch(b).......................................... 108,963
-----------
1,562,662
-----------
Technology (2.7%):
3,800 Electronics For Imaging, Inc.(b)....................... 195,225
7,100 Mercury Computer Systems, Inc.(b)...................... 228,975
-----------
424,200
-----------
Telecommunications--Services & Equipment (11.4%):
5,500 ANTEC Corp.(b)......................................... 176,344
8,200 Commscope, Inc.(b)..................................... 252,150
6,400 Dycom Industries, Inc.(b).............................. 358,399
1,550 Gilat Satellite Networks Ltd.(b)....................... 81,375
4,600 Intermedia Communications of Florida(b)(c)............. 138,000
4,700 Mastec, Inc.(b)........................................ 132,775
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ---------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued:
Telecommunications--Services & Equipment (continued):
7,100 Microwave Power Devices, Inc.(b).................... $ 109,163
5,000 Sawtek, Inc.(b)..................................... 229,375
13,300 SBA Communications Corp.(b)(c)...................... 128,844
1,600 Skytel Communications, Inc.(b)...................... 33,500
3,300 Worldgate Communications, Inc.(b)(c)................ 169,125
-----------
1,809,050
-----------
Transportation & Shipping (1.4%):
5,300 Atlas Air, Inc...................................... 170,925
2,100 Expeditors International of Washington, Inc......... 57,225
-----------
228,150
-----------
Wholesale Distribution (0.5%):
3,800 Wesco International, Inc.(b)........................ 77,900
-----------
Total Common Stocks 14,414,228
-----------
Cash Equivalents (4.0%):
631,807 Goldman Sachs Financial Square Premium.............. 631,807
-----------
Total Cash Equivalents 631,807
-----------
Repurchase Agreements (1.6%):
$ 250,000 Prudential Securities, 5.00%, 7/1/99,
(Collateralized by $260,000, Freddie Mac, 6.00%,
10/15/08, market value--$255,125).................. 250,000
-----------
Total Repurchase Agreements 250,000
-----------
Short Term Securities held as Collateral (18.9%):
Repurchase Agreements (18.9%):
1,304,800 Bear Stearns & Co. Triparty Agreement, 6.10%,
7/1/99, (See Significant Accounting Policies,
Lending Portfolio Securities in the Notes to
Financial Statements for collateral description)... 1,304,800
-----------
Total Short Term Securities Held as Collateral 1,304,800
-----------
Total Investments (Cost $13,285,517)(a)--104.5% 16,600,835
Other assets in excess of liabilities (4.5%) (721,234)
-----------
Total Net Assets--100.0% $15,879,601
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $3,626,394
Unrealized depreciation.... (311,076)
----------
Net unrealized
appreciation.............. $3,315,318
==========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at June 30, 1999.
See notes to financial statements.
17
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
International Discovery Fund
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks (97.7%):
Australia (0.8%):
Banking (0.8%):
7,599 National Australia Bank Ltd. ......................... $ 125,749
-----------
Austria (0.6%):
Manufacturing--Capital Goods (0.6%):
2,150 Mayr-Melnhof Karton AG................................ 97,558
-----------
Brazil (0.5%):
Telecommunications (0.5%):
897 Telebras ADR.......................................... 80,898
1,262 Telebras-Rights....................................... 79
-----------
80,977
-----------
Finland (4.2%):
Computer Software (1.1%):
4,483 TT Tieto Corp. ....................................... 186,777
-----------
Paper Products (0.5%):
2,501 Upm-Kymmene........................................... 77,376
-----------
Telecommunications--Services & Equipment (2.6%):
4,648 Nokia AB, Class A, ADR................................ 425,583
-----------
689,736
-----------
France (11.0%):
Commercial Services (1.1%):
671 Altran Technologies................................... 177,148
-----------
Consulting (1.0%):
1,100 Cap Gemini SA......................................... 172,883
-----------
Energy (1.7%):
2,236 Total SA, B Shares.................................... 288,471
-----------
Engineering (0.5%):
512 Compagnie De Saint-Gobain............................. 81,578
-----------
Health & Personal Care (1.4%):
353 L'Oreal............................................... 238,627
-----------
Industrial Goods & Services (0.8%):
1,572 Vivendi............................................... 127,342
-----------
Insurance (0.9%):
1,284 AXA................................................... 156,648
-----------
Machinery & Equipment (1.4%):
1,841 Sidel SA.............................................. 223,842
-----------
Retail Stores/Catalog (1.4%):
949 Castorama Dubois Investisse........................... 225,096
-----------
Telecommunications--Services & Equipment (0.8%):
1,662 France Telecom SA..................................... 125,549
-----------
1,817,184
-----------
Germany (6.7%):
Banking (0.6%):
1,701 Deutsche Bank AG...................................... 103,761
-----------
Electrical & Electronic (1.1%):
2,436 Siemens AG............................................ 187,911
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued:
Germany, continued:
Energy (1.0%):
2,837 Veba AG............................................... $ 166,766
-----------
Insurance (0.9%):
522 Allianz AG............................................ 144,809
-----------
Telecommunications (3.1%):
3,340 Mannesmann AG......................................... 498,413
-----------
1,101,660
-----------
Hong Kong (3.8%):
Banking (1.5%):
4,071 HSBC Holdings PLC..................................... 148,492
40,690 Li & Fung Ltd. ....................................... 97,548
-----------
246,040
-----------
Electrical & Electronic (1.0%):
40,089 Johnson Electric Holdings Ltd. ....................... 165,345
-----------
Gas & Electric Utility (0.6%):
65,882 Hong Kong & China Gas Co. Ltd. ....................... 95,529
-----------
Industrial Holding Company (0.7%):
13,015 Hutchison Whampoa..................................... 117,844
-----------
624,758
-----------
Ireland (0.6%):
Banking (0.6%):
5,415 Bank of Ireland....................................... 91,372
-----------
Italy (3.7%):
Insurance (0.9%):
4,468 Assicurazioni Generali................................ 154,820
-----------
Jewelry (0.4%):
9,103 Bulgari SpA........................................... 61,208
-----------
Telecommunications--Services & Equipment (2.4%):
25,182 Telecom Italia Mobile SpA............................. 150,364
23,542 Telecom Italia SpA.................................... 244,724
-----------
395,088
-----------
611,116
-----------
Japan (18.2%):
Automobiles (0.7%):
2,906 Honda Motor........................................... 123,168
-----------
Banking (1.0%):
11,302 Bank of Tokyo-Mitsubishi Ltd.......................... 160,889
-----------
Computer Hardware (0.1%):
120 TDK Corp. ............................................ 10,975
-----------
Computer Software (3.8%):
11,657 Nihon Unisys.......................................... 252,814
50 Softbank Corp......................................... 10,125
1 Yahoo Japan Corp(b)................................... 374,269
-----------
637,208
-----------
Consumer Electronics (1.3%):
2,007 Sony Corp. ........................................... 216,393
-----------
</TABLE>
Continued
18
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
International Discovery Fund
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued:
Japan, continued:
Data Processing & Reproduction (1.1%):
8,719 Fujitsu Ltd........................................... $ 175,408
-----------
Electronic Components/Instruments (1.6%):
4,876 Fanuc Co. Ltd......................................... 261,856
-----------
Financial Services (0.6%):
8,266 Nomura Securities Co. ................................ 96,772
-----------
Food & Household Products (1.0%):
5,828 Kao Corp. ............................................ 163,713
-----------
Manufacturing--Capital Goods (0.6%):
872 SMC Corporation....................................... 97,620
-----------
Manufacturing--Consumer Goods (2.3%):
7,358 Canon, Inc. .......................................... 211,556
141 Fuji Photo Film Ltd. ................................. 5,335
1,259 Nintendo.............................................. 176,935
-----------
393,826
-----------
Pharmaceuticals (2.4%):
8,425 Takeda Chemical Industries............................ 390,497
-----------
Retail Stores/Catalog (0.6%):
1,096 Seven-Eleven Japan Ltd. .............................. 107,394
-----------
Telecommunications--Services & Equipment (1.1%):
8 Nippon Telegraph & Telephone Corp. ................... 93,195
7 NTT Mobile Communications............................. 94,848
-----------
188,043
-----------
3,023,762
-----------
Korea (1.2%):
Metals (1.2%):
5,858 Pohang Iron & Steel ADR............................... 196,975
-----------
Mexico (1.7%):
Beverages & Tobacco (0.5%):
4,149 Coca-Cola Femsa S.A.--ADR(b).......................... 80,387
-----------
Entertainment (0.6%):
2,368 Grupo Televisa SA--ADR(b)............................. 106,115
-----------
Telecommunications (0.6%):
1,149 Telefonos De Mexico--ADR.............................. 92,854
-----------
279,356
-----------
Netherlands (9.4%):
Beverages & Tobacco (0.9%):
2,926 Heineken.............................................. 149,819
-----------
Broadcasting & Publishing (1.6%):
6,496 Wolters Kluwer NV..................................... 258,587
-----------
Consumer Goods & Services (0.5%):
1,136 Unilever NV........................................... 76,581
-----------
Energy (2.4%):
7,035 Royal Dutch Petroleum................................. 412,085
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued:
Netherlands, continued:
Financial Services (0.9%):
4,714 Fortis NV............................................. $ 145,600
-----------
Industrial Goods & Services (0.5%):
793 DSM NV................................................ 85,051
-----------
Insurance (0.9%):
2,643 ING Groep NV.......................................... 143,097
-----------
Livestock Feed and Nutrition (0.7%):
3,294 Nutreco Holding N.V. ................................. 116,857
-----------
Retail Stores/Catalog (1.0%):
4,782 Kon Ahold NV.......................................... 164,714
-----------
1,552,391
-----------
Norway (0.4%):
Oil & Gas Exploration, Production & Services (0.4%):
4,856 Petroleum Geo-Services(b)............................. 73,097
-----------
Singapore (4.4%):
Banking (1.1%):
15,548 Development Bank of Singapore......................... 189,959
-----------
Electrical & Electronic (1.0%):
38,648 Natsteel Electronics Ltd. ............................ 169,124
-----------
Real Estate (1.0%):
25,277 City Developments..................................... 161,835
-----------
Transportation & Shipping (1.3%):
21,693 Singapore International Airlines...................... 206,422
-----------
727,340
-----------
Spain (1.9%):
Gas & Electric Utility (0.9%):
7,040 Endesa-Empresa Nac Electric........................... 150,140
-----------
Telecommunications (1.0%):
3,419 Telefonica SA(b)...................................... 164,696
-----------
314,836
-----------
Sweden (1.5%):
Paper Products (0.5%):
3,158 Svenska Cellulosa Ab-A Shares......................... 84,691
-----------
Retail Stores/Catalog (1.0%):
6,475 Hennes & Mauritz B Shares............................. 159,938
-----------
244,629
-----------
Switzerland (5.7%):
Banking (2.1%):
914 Credit Suisse Group................................... 158,155
641 UBS AG-Registered..................................... 191,321
-----------
349,476
-----------
Food Products & Services (0.7%):
68 Nestle SA............................................. 122,520
-----------
Insurance (1.0%):
86 Swiss Reinsurance Co. ................................ 163,747
-----------
</TABLE>
Continued
19
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
International Discovery Fund
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued:
Sweden, continued:
Pharmaceuticals (1.9%):
101 Novartis AG........................................... $ 147,479
16 Roche Holdings AG..................................... 164,468
-----------
311,947
-----------
947,690
-----------
Taiwan (0.9%):
Electronic Components/Instruments (0.9%):
4,316 Taiwan Semicondustor--ADR(b).......................... 146,744
-----------
United Kingdom (18.4%):
Aerospace/Defense (0.5%):
11,572 British Aerospace PLC................................. 75,654
-----------
Banking (2.8%):
7,377 Abbey National PLC.................................... 138,029
11,172 Allied Zurich PLC..................................... 139,563
12,755 Standard Chartered PLC................................ 208,295
-----------
485,887
-----------
Beverages & Tobacco (1.0%):
11,317 Bass PLC.............................................. 164,208
-----------
Commercial Services (0.6%):
9,082 Logica PLC............................................ 95,201
-----------
Electric Utility (1.0%):
23,983 National Grid Group PLC............................... 166,056
-----------
Electrical & Electronic (1.0%):
16,523 General Electric PLC.................................. 167,210
-----------
Energy (1.7%):
15,709 BP Amoco PLC.......................................... 281,297
-----------
Engineering (1.0%):
33,206 Invensys PLC.......................................... 157,290
-----------
Food Products & Services (0.4%):
7,399 Compass Group PLC..................................... 73,302
-----------
Industrial Goods & Services (1.8%):
7,273 Boc Group PLC......................................... 142,732
15,044 Imperial Chemical Industries PLC...................... 148,687
-----------
291,419
-----------
Industrial Holding Company (0.9%):
17,051 Hanson PLC............................................ 151,455
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued:
United Kingdom, continued:
Leisure (0.9%):
7,940 Granada Group PLC..................................... $ 148,187
-----------
Media and Entertainment (1.4%):
11,254 Pearson PLC........................................... 228,664
-----------
Pharmaceuticals (1.7%):
4,445 Glaxo Holdings PLC.................................... 123,457
12,595 Smithcline Beecham PLC................................ 163,692
-----------
287,149
-----------
Telecommunications (1.7%):
8,816 British Telecommunications PLC........................ 147,721
7,086 Vodafone.............................................. 140,068
-----------
287,789
-----------
3,060,768
-----------
United States (2.1%):
Pharmaceuticals (0.9%):
2,756 Pharmacia & Upjohn, Inc. ............................. 156,575
-----------
Telecommunications (1.2%):
1,584 Frontier Corp......................................... 93,456
486 Vodafone Group PLC-ADR................................ 95,742
-----------
189,198
-----------
345,773
-----------
Total Common Stocks 16,153,471
-----------
Preferred Stocks (0.5%):
Germany (0.5%):
Business Services (0.5%):
188 SAP AG................................................ 75,128
-----------
Total Preferred Stocks 75,128
-----------
Cash Equivalents (1.7%):
280,856 Goldman Sachs Financial Square Premium................ 280,856
-----------
Total Cash Equivalents 280,856
-----------
Total Investments (Cost $13,784,845)(a)--99.9% 16,509,455
Other assets in excess of liabilities--0.1% 16,157
-----------
Total Net Assets--100.0% $16,525,612
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................... $3,125,054
Unrealized depreciation............................... (400,444)
----------
Net unrealized appreciation........................... $2,724,610
==========
</TABLE>
(b) Represents non-income producing securities.
Continued
20
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund
<TABLE>
<CAPTION>
Bond Fund
----------------------------------------------------------------------------------
Six Months
Ended Year Ended Year Ended Year Ended Year Ended Year Ended
June 30, December 31, December 31, December 31, December 31, December 31,
For a Share Outstanding 1999 1998 1997 1996 1995 1994
Throughout the Period ----------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.92 $ 10.70 $ 10.33 $ 10.50 $ 9.35 $ 9.96
----------- ----------- ----------- ---------- ---------- ----------
Investment Activities
Net investment income.. 0.38 0.51 0.48 0.36 0.40 0.42
Net realized and
unrealized gains
(losses) from
investments........... (0.66) 0.20 0.30 (0.18) 1.17 (0.96)
----------- ----------- ----------- ---------- ---------- ----------
Total from Investment
Activities............ (0.28) 0.71 0.78 0.18 1.57 (0.54)
----------- ----------- ----------- ---------- ---------- ----------
Distributions
From net investment
income................ -- (0.49) (0.41) (0.35) (0.42) (0.07)
----------- ----------- ----------- ---------- ---------- ----------
Total Distributions.... -- (0.49) (0.41) (0.35) (0.42) (0.07)
----------- ----------- ----------- ---------- ---------- ----------
Net Asset Value, End of
Period................. $ 10.64 $ 10.92 $ 10.70 $ 10.33 $ 10.50 $ 9.35
=========== =========== =========== ========== ========== ==========
Total Return............ (2.56%)(b) 6.71% 7.69% 1.83% 16.98% (5.38%)
Ratios/Supplementary
Data:
Net Assets at end of
period................. $10,349,906 $12,337,690 $11,856,187 $9,754,430 $6,758,241 $4,651,157
Ratio of expenses to
average net assets..... 1.47%(c) 1.44% 1.36% 1.29% 1.57% 1.80%
Ratio of net investment
income to average net
assets................. 4.90%(c) 5.00% 5.36% 5.32% 5.31% 5.27%
Ratio of expenses to
average net assets*.... (a) 1.50% (a) (a) (a) (a)
Portfolio turnover rate. 84% 190% 144% 492% 178% 159%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) There were no waivers or reimbursements during this period.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
21
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund
<TABLE>
<CAPTION>
Mid Capitalization Fund
-------------------------------------------------------------------------------------
Six Months
Ended Year Ended Year Ended Year Ended Year Ended Year Ended
June 30, December 31, December 31, December 31, December 31, December 31,
For a Share Outstanding 1999 1998 1997 1996 1995 1994
Throughout the Period ------------ ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 15.70 $ 14.23 $ 14.60 $ 12.44 $ 9.64 $ 10.17
------------ ------------ ------------ ------------ ------------ -----------
Investment Activities
Net investment income
(loss)................ (0.09) (0.16) (0.11) (0.09) (0.08) (0.07)
Net realized and
unrealized gains
(losses) from
investments........... 1.76 1.63 1.90 2.25 2.88 (0.46)
------------ ------------ ------------ ------------ ------------ -----------
Total from Investment
Activities............ 1.67 1.47 1.79 2.16 2.80 (0.53)
------------ ------------ ------------ ------------ ------------ -----------
Distributions
From net realized
gains................. -- -- (2.16) -- -- --
------------ ------------ ------------ ------------ ------------ -----------
Total Distributions.... -- -- (2.16) -- -- --
------------ ------------ ------------ ------------ ------------ -----------
Net Asset Value, End of
Period................. $ 17.37 $ 15.70 $ 14.23 $ 14.60 $ 12.44 $ 9.64
============ ============ ============ ============ ============ ===========
Total Return............ 10.64%(b) 10.33% 12.58% 17.36% 29.05% (5.21%)
Ratios/Supplementary
Data:
Net Assets at end of
period................. $ 25,052,752 $ 29,065,627 $ 31,059,179 $ 24,040,588 $ 14,977,130 $ 9,095,015
Ratio of expenses to
average net assets..... 1.51%(c) 1.51% 1.53% 1.42% 1.62% 1.86%
Ratio of net investment
income (loss) to
average net assets..... (0.93%)(c) (0.98%) (0.88%) (0.73%) (0.84%) (0.92%)
Ratio of expenses to
average net assets*.... (a) 1.57% (a) (a) (a) (a)
Portfolio turnover rate. 66% 71% 55% 127% 44% 51%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) There were no waivers or reimbursements during this period.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
22
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund
<TABLE>
<CAPTION>
Small Capitalization Fund
------------------------------------------------------------------------------------
Six Months
Ended Year Ended Year Ended Year Ended Year Ended Year Ended
June 30, December 31, December 31, December 31, December 31, December 31,
For a Share Outstanding 1999 1998 1997 1996 1995 1994
Throughout the Period ----------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 16.69 $ 17.12 $ 18.20 $ 15.71 $ 11.58 $ 11.00
----------- ----------- ----------- ----------- ----------- ----------
Investment Activities
Net investment income
(loss)................ (0.08) (0.20) (0.20) (0.15) (0.15) (0.13)
Net realized and
unrealized gains
(losses) from
investments........... (0.98) (0.23) (0.79) 4.79 4.28 0.71
----------- ----------- ----------- ----------- ----------- ----------
Total from Investment
Activities............ (1.06) (0.43) (0.99) 4.64 4.13 0.58
----------- ----------- ----------- ----------- ----------- ----------
Distributions
From net realized
gains................. -- -- (0.09) (2.15) -- --
----------- ----------- ----------- ----------- ----------- ----------
Total Distributions.... -- -- (0.09) (2.15) -- --
----------- ----------- ----------- ----------- ----------- ----------
Net Asset Value, End of
Period................. $ 15.63 $ 16.69 $ 17.12 $ 18.20 $ 15.71 $ 11.58
=========== =========== =========== =========== =========== ==========
Total Return............ (6.35%)(b) (2.51%) (5.47%) 29.66% 35.66% 5.27%
Ratios/Supplementary
Data:
Net Assets at end of
period................. $15,879,601 $22,454,150 $26,860,472 $24,495,224 $13,272,561 $7,476,444
Ratio of expenses to
average net assets..... 1.59%(c) 1.53% 1.55% 1.40% 1.64% 1.98%
Ratio of net investment
income (loss) to
average net assets..... (0.97%)(c) (1.14%) (1.20%) (1.06%) (1.29%) (1.66%)
Ratio of expenses to
average net assets*.... (a) 1.60% (a) (a) (a) (a)
Portfolio turnover rate. 62% 83% 51% 60% 64% 39%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) There were no waivers or reimbursements during this period.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
23
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund
<TABLE>
<CAPTION>
International Discovery Fund
------------------------------------------------------------------------------------
Six Months
Ended Year Ended Year Ended Year Ended Year Ended Year Ended
June 30, December 31, December 31, December 31, December 31, December 31,
For a Share Outstanding 1999 1998 1997 1996 1995 1994
Throughout the Period ----------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 13.83 $ 12.44 $ 12.18 $ 10.59 $ 9.65 $ 10.35
----------- ----------- ----------- ----------- ----------- ----------
Investment Activities
Net investment income
(loss)................ (0.04) (0.10) (0.06) (0.04) (0.03) (0.07)
Net realized and
unrealized gains
(losses) from
investments........... 0.80 1.55 0.32 1.67 0.97 (0.63)
----------- ----------- ----------- ----------- ----------- ----------
Total from Investment
Activities............ 0.76 1.45 0.26 1.63 0.94 (0.70)
----------- ----------- ----------- ----------- ----------- ----------
Distributions
In excess of net
investment income..... -- -- -- (0.04) -- --
From net realized
gains................. -- (0.06) -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Total Distributions.... -- (0.06) -- (0.04) -- --
----------- ----------- ----------- ----------- ----------- ----------
Net Asset Value, End of
Period................. $ 14.59 $ 13.83 $ 12.44 $ 12.18 $ 10.59 $ 9.65
=========== =========== =========== =========== =========== ==========
Total Return............ 5.50%(b) 11.61% 2.13% 15.41% 9.74% (6.76%)
Ratios/Supplementary
Data:
Net Assets at end of
period................. $16,525,612 $18,371,025 $18,784,361 $17,000,747 $11,645,200 $9,537,019
Ratio of expenses to
average net assets..... 2.06%(c) 2.05% 1.90% 2.00% 2.38% 2.34%
Ratio of net investment
income (loss) to
average net assets..... (0.41%)(c) (0.66%) (0.46%) (0.35%) (0.39%) (1.13%)
Ratio of expenses to
average net assets*.... (a) 2.11% (a) (a) (a) (a)
Portfolio turnover rate. 65% 73% 34% 65% 86% 87%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) There were no waivers or reimbursements during this period.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
24
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
(Unaudited)
1. Organization:
The Parkstone Advantage Fund (the "Company") is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
investment company.
The Company is authorized to issue an unlimited number of shares which are
shares of beneficial interest without par value. The Company presently offers
series of shares of the Bond Fund, the Mid Capitalization Fund, the Small
Capitalization Fund and the International Discovery Fund (collectively, "the
Funds" and individually, a "Fund"). Sales of shares of the Funds may only be
made to separate accounts of various life insurance companies ("Participating
Insurance Companies") and certain qualified benefit plans. As of June 30,
1999, 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
Company in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles (GAAP). The
preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of income and
expenses for the period. Actual results could differ from those estimates.
Securities Valuation:
Investments in common and preferred stocks of the Funds are valued at their
market values determined on the basis of the latest available bid in the
principal market (closing sales price if the principal market is an
exchange), in which such securities are normally traded. Investments in
corporate bonds, commercial paper and foreign government bonds and U.S.
government securities of the Funds, are valued at their market values
determined on the basis of the mean between the latest available bid and
asked prices in the principal market (closing sales prices if the principal
market is an exchange) in which such securities are normally traded.
Amortization of premium or discount is recognized on the sale or maturity
of the security for the Bond Fund. Investments in foreign securities in the
International Discovery Fund are valued based on quotations from the
primary market in which they are traded. Investments in investment
companies are valued at their net asset values as reported by such
investment companies. 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.
Securities Transactions and Related Income:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis. Dividend income is recorded on the ex-dividend date. Gains
or losses realized from sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
Foreign Currency Translation:
The market value of investment securities, other assets and liabilities of
the International Discovery Fund denominated in a foreign currency are
translated into U.S. dollars at the current exchange rate. Purchases and
sales of securities, income receipts and expense payments are translated
into U.S. dollars at the exchange rate on the date of each transaction.
The International Discovery Fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gains or losses from investments.
Continued
25
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
(Unaudited)
Reported net realized foreign exchange gains or losses arise from sales and
maturities of portfolio securities, sales of foreign currencies, currency
exchange fluctuations between the trade and settlement dates of securities
transactions, and the difference between the amounts of assets and
liabilities recorded and the U.S. dollars equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains and losses
arise from changes in the value of assets and liabilities, including
investments in securities, resulting from changes in currency exchange
rates.
Repurchase Agreements:
The Funds may acquire repurchase agreements from member banks of the
Federal Deposit Insurance Corporation 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
IMC 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).
Lending Portfolio Securities:
To generate additional income, the Fund, may lend up to 33 1/3% of
securities in which they are invested pursuant to agreements requiring that
the loan be continuously secured by cash, U.S. government or U.S.
government agency securities, shares of an investment trust or mutual fund,
or any combination of cash and such securities as collateral equal at all
times to at least 100% of the market value plus accrued interest on the
securities loaned. The Funds continue to earn interest and dividends on
securities loaned while simultaneously seeking to earn interest on the
investment of collateral.
When cash is received as collateral for securities loaned, the Funds may
invest such cash in short-term U.S. government securities, repurchase
agreements, or other short-term corporate securities. The cash or
subsequent short-term investments are recorded as assets of the Funds,
offset by a corresponding liability to repay the cash at the termination of
the loan. In addition, the short-term securities purchased with the cash
collateral are included in the accompanying schedules of portfolio
investments. Fixed income securities received as collateral are not
recorded as an asset or liability of the Fund because the Fund does not
have effective control of such securities.
There may be risks of delay in recovery of the securities or even loss of
rights in the collateral should the borrower of the securities fail
financially. However, loans will be made only to borrowers deemed by the
Advisor to be of good standing and creditworthy under guidelines
established by the Board of Trustees and when, in the judgment of the
Advisor, the consideration which can be earned currently from such
securities loans justifies the attendant risks. Loans are subject to
termination by the Funds or the borrower at any time, and are, therefore,
not considered to be illiquid investments. According to GAAP, a statement
of cash flows is presented if the Fund loaned out, on average, more than
10% of net assets during the year. Under this guideline, a statement of
cash flows is presented for each of the Funds listed below. As of June 30,
1999, the following Funds had securities with the following market values
on loan:
<TABLE>
<CAPTION>
Market Market Value
Value of of Loaned
Collateral Securities
---------- ------------
<S> <C> <C>
Mid Capitalization Fund.............................. $4,743,800 $4,575,919
Small Capitalization Fund............................ 1,304,800 1,093,763
</TABLE>
Continued
26
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
(Unaudited)
The loaned securities were fully collateralized by cash, U.S. government
securities, short-term corporate notes and repurchase agreements as of June
30, 1999.
As disclosed in the schedules of portfolio investments the Small
Capitalization and Mid Capitalization Funds collectively invested cash
collateral in a Bear Stearns Repurchase Agreement with an interest rate of
6.10% and a maturity of 7/1/99 which was collateralized by the following
securities:
<TABLE>
<CAPTION>
Principal Description Market Value
--------- ----------- ------------
<S> <C> <C> <C> <C>
$54,472,696 Various Fannie Mae 1.35-8.00% 3/25/24-8/18/27 $ 6,572,227
26,208,557 PNC Mortgage Securities Corp. 6.15% 6/25/29 25,500,480
32,732,400 Structured Asset Mortgage Investments Inc. 6.47% 4/25/29 32,902,793
6,155,306 Various Freddie Mac 3.23-8.10% 4/1/28-5/15/29 3,232,498
35,885,021 Various Freddie Mac Strip 0.00-7.50% 1/1/23-4/1/28 15,253,096
</TABLE>
Dividends and Distributions to Shareholders:
The Funds intend to pay, at least annually, substantially all of its net
investment income. Net capital gains, if any, are distributed at least
annually.
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations which may differ from GAAP. These "book/tax" differences
are either considered temporary or permanent in nature.
To the extent these differences are permanent in nature, such amounts are
reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions to shareholders which exceed net investment
income and net realized capital gains for financial reporting purposes but
not for tax purposes are reported as dividends in excess of net investment
income and net realized gains. To the extent they exceed net investment
income and net realized gains for tax purposes, they are reported as
distributions of capital.
Federal Income Taxes:
It is the policy of each of the Funds to continue 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 it from all, or substantially
all, federal income taxes.
Forward Currency Contracts:
The Funds may enter into a forward currency contract ("forward") which is
an agreement between two parties to buy and sell a currency at a set price
on a future date. The market value of the forward fluctuates with changes
in currency exchange rates. The forward is marked-to-market daily and the
change in market value is recorded by a Fund as unrealized appreciation or
depreciation. When the forward is closed the Funds record a realized gain
or loss equal to the difference between the value at the time it was opened
and the value at the time it was closed. The Funds could be exposed to risk
if a counterparty is unable to meet the terms of a forward or if the value
of the currency changes unfavorably.
Continued
27
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
(Unaudited)
Forwards may involve market or credit risk in excess of the amounts
reflected on the Fund's statement of assets and liabilities. The gain or
loss from the difference between the cost of original contracts and the
amount realized upon the closing of such contracts is included in net
realized gains/losses from investment and foreign currency transactions.
Fluctuations in the value of forwards held at June 30, 1999 are recorded
for financial reporting purposes as unrealized gains and losses by the
Funds. The following forwards were open at June 30, 1999.
<TABLE>
<CAPTION>
Contract
Amount Contract Value Appreciation Delivery
Forward Currency Contracts (local currency) U.S. Dollar (Depreciation) Date
-------------------------- ---------------- -------------- -------------- --------
<S> <C> <C> <C> <C>
International Discovery
Fund
Short Contracts
Japanese Yen............. 200,000,000 $1,749,475 $ 23,654 4/3/00
Japanese Yen............. 2,157,530 17,825 (16) 7/5/99
U.S. Dollars............. 996,016 996,016 -- 4/3/00
U.S. Dollars............. 761,267 761,267 -- 4/3/00
Long Contracts
Japanese Yen............. 112,500,000 996,016 (25,242) 4/3/00
Japanese Yen............. 87,500,000 761,267 (6,220) 4/3/00
U.S. Dollars............. 1,749,475 1,749,475 -- 4/3/00
U.S. Dollars............. 17,825 17,825 -- 7/5/99
--------
Net payable for forward
currency contracts..... $ (7,824)
========
</TABLE>
Other:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses for the Company are prorated to the
Funds on the basis of relative net assets.
3. Investment Risks:
The International Discovery Fund's investment in foreign securities may
involve risks not present in domestic investments. Since foreign securities
are denominated in foreign currencies 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 investment 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.
Continued
28
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Advantage Fund June 30, 1999
(Unaudited)
4. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
six months ended June 30, 1999, are as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Bond Fund........................................... $ 9,428,065 $10,454,942
Mid Capitalization Fund............................. 16,904,057 23,104,419
Small Capitalization Fund........................... 10,448,169 16,338,606
International Discovery Fund........................ 11,035,276 13,465,989
</TABLE>
5. Related Party Transactions:
Investment advisory services are provided to the Funds by National City
Investment Management Co. (IMC). Under the terms of the investment advisory
agreement, IMC is entitled to receive fees based on a percentage of the
average daily net assets of the Funds. National City Bank, an affiliate of
IMC, serves as custodian of the Company's assets and receives a fee based on
the daily average net assets of each Fund.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS")
is an Ohio limited partnership. BISYS Fund Services, Inc. ("BISYS Inc."), and
BISYS are subsidiaries of The BISYS Group, Inc.
BISYS, with whom certain officers of the Company are affiliated, serves the
Company as Administrator. Such officers are paid no fees directly by the
Company for serving as officers of the Company. Under the terms of the
Administration Agreement between BISYS and the Company, BISYS's fees are
computed daily as a percentage of the average net assets of each of the
Funds. BISYS Inc. serves as Distributor to the Trust and as Mutual Fund
Accountant and Transfer Agent.
<TABLE>
<CAPTION>
Mid Small International
Bond Capitalization Capitalization Discovery
Fund Fund Fund Fund
----- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Investment Advisory Fees:
Annual fee (percentage of
average net assets)....... 0.74% 1.00% 1.00% 1.25%(a)
Administration Fees:
Annual fee (percentage of
average net assets)....... 0.20% 0.20% 0.20% 0.20%
</TABLE>
-------
(a) For International Discovery Fund, IMC receives 1.25% of the first $50
million of the International Discovery Fund's average daily net assets,
1.20% of the average daily net assets between $50 million and $100
million, 1.15% of average daily net assets between $100 and $400; and
1.05% of all average daily net assets above $400 million.
Fees may be voluntarily reduced or reimbursed to assist the Funds in
maintaining competitive expense ratios.
6. Subsequent Event:
Effective July 6, 1999, SEI Investments Mutual Fund Services became the
Administrator and Mutual Fund Accountant to the Company; SEI Investments
Distribution Co. became the Distributor of Company shares; and State Street
Bank & Trust Company became the Transfer Agent to the Company.
Continued
29
<PAGE>
Parkstone Advantage Fund
Board of Trustees
Robert D. Neary
Chairman
Retired Co-Chairman, Ernst & Young
Director:
Cold Metal Products, Inc.
Strategic Distribution, Inc.
Herbert R. Martens, Jr.
President
Executive Vice President,
National City Corporation
Chairman, President and Chief Executive
Officer, NatCity Investments, Inc.
Leigh Carter
Retired President and Chief Operating
Officer, B.F. Goodrich Company
Director:
Kirtland Capital Corporation
Morrison Products
TruSeal Technologies
John F. Durkott
President and Chief Operating Officer,
Kittle's Home Furnishings Center, Inc.
Robert J. Farling
Retired Chairman, President and Chief
Executive Officer, Centerior Energy
Richard W. Furst, Dean
Garvice D. Kincaid, Professor of Finance
and Dean, Carol Martin Gatton College
of Business and Economics, University
of Kentucky
Director:
Foam Design Inc.
The Seed Corporation
Gerald L. Gherlein
Executive Vice President and General
Counsel, Eaton Corporation
Trustee:
WVIZ Educational Television
J. William Pullen
President and Chief Executive Officer,
Whayne Supply Company
The Parkstone Advantage Fund Trustees also serve as the Trustees of the Armada
Funds and Parkstone Group of Funds.
[LOGO OF THE PARKSTONE ADVANTAGE APPEARS HERE]
<PAGE>
The Parkstone Advantage Fund
. Bond Fund
. Mid Capitalization Fund
. Small Capitalization Fund
. International Discovery Fund
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
Not FDIC Insured contains details concerning the sales
charges and other pertinent information.
