The Armada Advantage Fund
Semi-Annual Report
[graphic omitted]
June 30, 2000
[Armada Advantage logo omitted]
<PAGE>
SEMI-ANNUAL REPORT -- JUNE 30, 2000
TABLE OF CONTENTS
THE ARMADA ADVANTAGE FUND President's Message........................1
ARMADA ADVANTAGE BOND FUND FINANCIAL STATEMENTS
ARMADA ADVANTAGE INTERNATIONAL Financial Highlights.....................2
EQUITY FUND Schedules of Investments.................7
ARMADA ADVANTAGE Statements of Assets and Liabilities....17
MID CAP GROWTH FUND Statements of Operations................18
ARMADA ADVANTAGE
SMALL CAP GROWTH FUND Statements of Changes in Net Assets.....19
ARMADA ADVANTAGE EQUITY GROWTH FUND Notes to Financial Statements...........21
Not FDIC Insured No Bank Guarantee May Lose Value
Shares of the Funds are not deposits or obligations of, or guaranteed or
endorsed by, National City Corporation or any of its affiliates. Shares of the
Funds are not federally insured by the U.S. government, the Federal Deposit
Insurance Corporation, the Federal Reserve Board of any other agency. Investment
return and principal value will vary as a result of market conditions or other
factors so that shares of the Funds, when redeemed, may be worth more or less
than their original cost. An investment in the Funds involves investment risks,
including the possible loss of principal.
This report is submitted for the general information of shareholders of The
Armada Advantage Fund. It is not authorized for distribution to prospective
shareholders unless accompanied by or preceded by a prospectus.
<PAGE>
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
Dear Shareholders:
Over the course of the six months ended June 30, 2000, volatility and interest
rate anxiety were major themes in the equity markets. Meanwhile, the fixed
income markets managed to post positive returns, as the Federal Reserve's
campaign to slow economic growth appeared to calm some of the market's interest
rate fears.
During this period, we've continued our commitment to providing variable annuity
products to our customers. On June 19, 2000, we began offering the Armada
Advantage Mid Cap Growth Fund, the Armada Advantage International Equity Fund
and the Armada Advantage Equity Growth Fund (launched last year) in the NatCity
Director, our new annuity product.
Effective May 1, we changed The Parkstone Advantage Fund name to "The Armada
Advantage Fund". This change was completed in anticipation of the June 2000
reorganization of The Parkstone Group of Funds with Armada Funds. While all
investment objectives remain the same, three subaccount names have also changed
to reflect the new names of their mutual fund counterparts:
Armada Advantage International Equity Fund
(formerly International Discovery Fund)
Armada Advantage Small Cap Growth Fund
(formerly Small Capitalization Fund)
Armada Advantage Mid Cap Growth Fund
(formerly Mid Capitalization Fund)
In the pages that follow, you will find financial information for each of the
five Armada Advantage subaccounts for the six-month period ended June 30, 2000.
Thank you for your investment in The Armada Advantage Fund. If you have any
questions about the Fund or your account, please call us at 1-800-355-4555.
Sincerely,
/S/signature omitted
Herbert R. Martens, Jr.
President
[Armada Advantage logo omitted]
1
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND
BOND FUND
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED -------------------------------------------------------
JUNE 30,
FOR A SHARE OUTSTANDING THROUGHOUT 2000
THE PERIOD (UNAUDITED) 1999 1998 1997 1996 1995
----------- ------ ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................. $ 9.72 $10.92 $ 10.70 $ 10.33 $10.50 $ 9.35
------ ------ ------- ------- ------ -------
INVESTMENT ACTIVITIES
Net investment income ............................. 0.34 0.96 0.51 0.48 0.36 0.40
Net realized and unrealized gains/(losses)
on investments .................................. (0.11) (1.19) 0.20 0.30 (0.18) 1.17
------ ------ ------- ------- ------ -------
Total from Investment Operations .............. 0.23 (0.23) 0.71 0.78 0.18 1.57
------ ------ ------- ------- ------ -------
LESS DISTRIBUTIONS
Dividends from net investment income .............. -- (0.83) (0.49) (0.41) (0.35) (0.42)
Distributions from net realized capital gains ..... -- (0.14) -- -- -- --
------ ------ ------- ------- ------ -------
Total Distributions ........................... -- (0.97) (0.49) (0.41) (0.35) (0.42)
------ ------ ------- ------- ------ -------
NET ASSET VALUE, END OF PERIOD .................... $ 9.95 $ 9.72 $ 10.92 $ 10.70 $10.33 $ 10.50
====== ====== ======= ======= ====== =======
Total Return ......................................... 2.37%(b) (1.96%) 6.71% 7.69% 1.83% 16.98%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of year (000) ...................... $6,931 $7,470 $12,337 $11,856 $9,754 $6,758
Ratio of expenses to average net assets .............. 2.00%(c) 1.29% 1.44% 1.36% 1.29% 1.57%
Ratio of net investment income to average
net assets ........................................ 5.34%(c) 5.25% 5.00% 5.36% 5.32% 5.31%
Ratio of expenses to average net assets* ............. (a) (a) 1.50% (a) (a) (a)
Portfolio turnover rate .............................. 104% 242% 190% 144% 492% 178%
<FN>
-----------
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
have been indicated.
(a)There were no waivers or reimbursements during this period.
(b)Total return is for the period indicated and has not been annualized.
(c)Annualized.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND
INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------
JUNE 30,
FOR A SHARE OUTSTANDING THROUGHOUT 2000
THE PERIOD (UNAUDITED) 1999(B) 1998 1997 1996 1995
----------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................ $ 20.51 $ 13.83 $ 12.44 $ 12.18 $ 10.59 $ 9.65
------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment loss .............................. (0.05) (0.10) (0.10) (0.06) (0.04) (0.03)
Net realized and unrealized gains/(losses)
on investments ................................. (1.38) 7.54 1.55 0.32 1.67 0.97
------- ------- ------- ------- ------- -------
Total from Investment Operations ............. (1.43) 7.44 1.45 0.26 1.63 0.94
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income ............. -- -- -- -- (0.04) --
Distributions from net realized capital gains .... -- (0.76) (0.06) -- -- --
------- ------- ------- ------- ------- -------
Total Distributions ............................. -- (0.76) (0.06) -- (0.04) --
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ................... $ 19.08 $ 20.51 $ 13.83 $ 12.44 $ 12.18 $ 10.59
======= ======= ======= ======= ======= =======
Total Return ........................................ (6.97%)(c) 55.70% 11.61% 2.13% 15.41% 9.74%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ................... $18,543 $20,584 $18,371 $18,784 $17,001 $11,645
Ratio of expenses to average net assets ............. 1.90%(d) 2.01% 2.05% 1.90% 2.00% 2.38%
Ratio of net investment income to average
net assets ....................................... (0.49%)(d) (0.69%) (0.66%) (0.46%) (0.35%) (0.39%)
Ratio of expenses to average net assets* ............ 1.92%(d) (a) 2.11% (a) (a) (a)
Portfolio turnover rate ............................. 64% 115% 73% 34% 65% 86%
-------------
<FN>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
have been indicated.
(a)There were no waivers or reimbursements during this period.
(b)Per share data calculated using average shares outstanding method.
(c)Total return is for the period indicated and has not been annualized.
(d)Annualized.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND
MID CAP GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------
JUNE 30,
FOR A SHARE OUTSTANDING THROUGHOUT 2000
THE PERIOD (UNAUDITED) 1999 1998 1997 1996 1995
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................ $ 21.27 $ 15.70 $ 14.23 $ 14.60 $ 12.44 $ 9.64
------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment loss .............................. (0.19) (0.41) (0.16) (0.11) (0.09) (0.08)
Net realized and unrealized gains
on investments ................................. 3.04 7.08 1.63 1.90 2.25 2.88
------- ------- ------- ------- ------- -------
Total from Investment Operations ............. 2.85 6.67 1.47 1.79 2.16 2.80
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Distributions from net realized capital gains .... -- (1.10) -- (2.16) -- --
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ...................... $ 24.12 $ 21.27 $ 15.70 $ 14.23 $ 14.60 $ 12.44
======= ======= ======= ======= ======= =======
Total Return ........................................ 13.40%(b) 44.36% 10.33% 12.58% 17.36% 29.05%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ................... $23,959 $22,967 $29,066 $31,059 $24,041 $14,977
Ratio of expenses to average net assets ............. 1.66%(c) 1.59% 1.51% 1.53% 1.42% 1.62%
Ratio of net investment income to average
net assets ....................................... (1.09%)(c) (1.09%) (0.98%) (0.88%) (0.73%) (0.84%)
Ratio of expenses to average net assets* ............ 1.69%(c) (a) 1.57% (a) (a) (a)
Portfolio turnover rate ............................. 97% 139% 71% 55% 127% 44%
--------------
<FN>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
have been indicated.
(a)There were no waivers or reimbursements during this period.
(b)Total return is for the period indicated and has not been annualized.
(c)Annualized.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND
SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------
JUNE 30,
FOR A SHARE OUTSTANDING THROUGHOUT 2000
THE PERIOD (UNAUDITED) 1999 1998 1997 1996 1995
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................. $20.77 $ 16.69 $ 17.12 $ 18.20 $ 15.71 $ 11.58
------ ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment loss ............................... (0.14) (0.22) (0.20) (0.20) (0.15) (0.15)
Net realized and unrealized gains/(losses)
on investments .................................. 1.91 5.16 (0.23) (0.79) 4.79 4.28
------ ------- ------- ------- ------- -------
Total from Investment Operations .............. 1.77 4.94 (0.43) (0.99) 4.64 4.13
------ ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Distributions from net realized capital gains ..... -- (0.86) -- (0.09) (2.15) --
------ ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ....................... $22.54 $ 20.77 $ 16.69 $ 17.12 $ 18.20 $ 15.71
====== ======= ======= ======= ======= =======
Total Return ......................................... 8.52%(b) 31.24% (2.51%) (5.47%) 29.66% 35.66%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) .................... $16,932 $16,473 $22,454 $26,860 $24,495 $13,273
Ratio of expenses to average net assets .............. 1.60%(c) 1.65% 1.53% 1.55% 1.40% 1.64%
Ratio of net investment income to average
net assets ........................................ (0.81%)(c) (1.08%) (1.14%) (1.20%) (1.06%) (1.29%)
Ratio of expenses to average net assets* ............. (a) (a) 1.60% (a) (a) (a)
Portfolio turnover rate .............................. 68% 135% 83% 51% 60% 64%
--------------
<FN>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
have been indicated.
(a)There were no waivers or reimbursements during this period.
(b)Total return is for the period indicated and has not been annualized.
(c)Annualized.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND
EQUITY GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
FOR A SHARE OUTSTANDING THROUGHOUT JUNE 30, 2000 DECEMBER 31,
THE PERIOD (UNAUDITED) 1999+
------------- ------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ............................ $11.40 $10.00
------ ------
INVESTMENT ACTIVITIES
Net investment income/(loss) ................................. 0.01 (1.00)
Net realized and unrealized gains on investments ............. 0.20 2.40
------ ------
Total from Investment Activities ......................... 0.21 1.40
------ ------
NET ASSET VALUE, END OF PERIOD .................................. $11.61 $11.40
------ ======
Total Return .................................................... 1.84%(a) 14.00%(a)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) ............................... $5,803 $5,700
Ratio of expenses to average net assets ......................... 1.11%(b) 1.00% (b)
Ratio of net investment income/(loss) to average net assets ..... 0.03%(b) (1.09%)(b)
Ratio of expenses to average net assets* ........................ 1.86%(b) 1.75% (b)
Portfolio turnover rate ......................................... 13% 26%
------------
<FN>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
have been indicated.
+ Fund commenced operations on September 13, 1999.
(a)Total return is for the period indicated and has not been annualized.
(b)Annualized.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
BOND FUND
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
(000) DESCRIPTION (000)
---------- ----------------------------------- -----------------
CORPORATE BONDS (19.0%):
Banks (3.4%):
$ 60 Bank of America, 7.875%, 05/16/05 .... $ 61
100 First Chicago, 6.875%, 06/15/03 ...... 98
85 First Union, 6.950%, 11/01/04 ........ 83
------
242
------
Building & Construction (1.2%):
115 Armstrong World, 7.450%, 05/15/29 .... 81
------
Chemical (1.0%):
70 E.I. Du Pont De Nemours,
6.875%, 10/15/09 ................... 68
------
Computer Software (2.4%):
175 Computer Associates,
6.250%, 04/15/03 ................... 168
------
Electrical Services (0.9%):
70 Western Resources, 6.875%, 08/01/04 .. 61
------
Financial Services (4.4%):
70 Morgan Stanley Dean Witter,
8.000%, 06/15/10 ................... 71
105 Salomon Smith Barney,
6.250%, 01/15/05 ................... 100
140 United Dominion Realty,
8.625%, 03/15/03 ................... 140
------
311
------
Insurance (0.9%):
85 Conseco, 8.750%, 02/09/04 ............ 60
------
Leisure (1.4%):
95 Hasbro, 7.950%, 03/15/03 ............. 96
------
Retail (2.0%):
50 J.C. Penney, 6.125%, 11/15/03 ........ 45
105 J.C. Penney, 7.600%, 04/01/07 ........ 93
------
138
------
Wholesale (1.4%):
105 Arrow Electronic, 6.875%, 06/01/18 ... 94
------
Total Corporate Bonds (Cost $1,382) ............. 1,319
------
ASSET BACKED SECURITIES (13.1%):
120 DVI Receivables Corporation,
Series 2000-1, Cl A4,
7.780%, 06/14/08 ................... 121
160 First Security Auto Owner Trust,
Series 1999-1, Cl A4,
5.740%, 06/15/04 ................... 156
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
(000) DESCRIPTION (000)
---------- ----------------------------------- -----------------
ASSET BACKED SECURITIES, CONTINUED:
$ 200 IMC Home Equity Loan Trust,
Series 1997-7, Cl A5,
6.760%, 10/20/20 ................... $ 196
75 Metris Master Trust, Series 1997-1, Cl A,
6.870%, 10/20/05 ................... 75
100 New Century Home Equity,
Series 1997-NC6, Cl A6,
7.010%, 05/25/26 ................... 97
175 PNC Trust, Series 1998-7, Cl A5, 6.750%,
09/25/28 ........................... 162
100 Saxon Asset Security Trust, Series 1999-3,
Cl AF6, 7.525%, 06/25/14 ........... 99
------
Total Asset Backed Securities (Cost $931) ....... 906
------
COLLATERALIZED MORTGAGE OBLIGATIONS (12.5%):
235 Credit Suisse First Boston Mortgage
Securities, Series 1997-C1, Cl A1C,
7.240%, 04/20/07 ................... 232
90 Prudential Securities Secured Financing,
Series 1998-C1, Cl A1B,
6.506%, 07/15/08 ................... 85
155 Prudential Securities Secured Financing,
Series 1998-C1, Cl A1A3,
6.350%, 09/15/07 ................... 147
25 Prudential Securities Secured Financing,
Series 1999-NRF1, Cl A2,
6.480%, 01/15/09 ................... 23
195 Residential Asset Securitization Trust,
Series 1999-KS1, Cl AI8,
6.320%, 04/25/30 ................... 183
103 Residential Asset Securitization Trust,
Series 2000-A3, Cl A2,
8.000%, 05/25/30 ................... 104
90 Residential Funding Mortgage Securities I,
Series 2000-HI1, Cl AI2,
7.580%, 09/25/10 ................... 89
------
Total Collateralized Mortgage Obligations
(Cost $871) ........................ 863
------
U.S. GOVERNMENT AGENCY OBLIGATIONS (32.3%):
Federal National Mortgage Association (11.6%):
583 6.000%, 08/01/28 ..................... 535
278 7.000%, 09/01/27-11/01/28 ............ 270
------
805
------
Government National Mortgage Association (16.1%):
406 6.500%, 09/15/23 - 06/15/29 .......... 388
668 7.500%, 08/15/25 - 01/15/30 .......... 662
65 8.000%, 01/15/30 ..................... 66
------
1,116
------
7
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
BOND FUND (CONCLUDED)
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
(000) DESCRIPTION (000)
---------- ----------------------------------- ---------------
U.S. GOVERNMENT AGENCY OBLIGATIONS, CONTINUED:
United States Department of Veteran Affairs (4.6%):
$ 115 6.000%, 06/15/25 ..................... $ 108
86 7.250%, 12/15/15 ..................... 86
125 7.500%, 06/15/30 ..................... 125
------
319
------
Total U.S. Government Agency Obligations
(Cost $2,275) ................................ 2,240
------
U.S. TREASURY OBLIGATIONS (21.3%):
U.S. Treasury Bonds (7.2%):
495 6.250%, 08/15/23 ..................... 498
------
U.S. Treasury Notes (8.7%):
90 6.125%, 08/15/07 ..................... 89
230 6.250%, 10/31/01- 08/31/02 ........... 229
285 6.500%, 05/15/05 ..................... 288
------
606
------
U.S. Treasury Inflationary Protection Security (5.4%):
374 3.625%, 07/15/02 ..................... 372
------
Total U.S. Treasury Obligations (Cost $1,450) ... 1,476
------
CASH EQUIVALENT (1.0%):
71,202 Goldman Sachs Financial Prime Obligation
Money Market Fund .................. 71
------
Total Cash Equivalent (Cost $71) ................ 71
------
Total Investments (Cost $6,980) -- 99.2% ........ 6,875
------
Other Assets and Liabilities, Net 0.8% .......... 56
------
Total Net Assets -- 100.0% ...................... 6,931
======
---------------
CL -- CLASS
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
INTERNATIONAL EQUITY FUND
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- -------------------------------- -------------------
FOREIGN COMMON STOCK (96.4%):
Australia (1.0%):
10,957 National Australia Bank*# ............ $ 182
------
Austria (0.8%):
3,025 Mayr Melnhof Karton* ................. 143
------
Canada (0.5%):
2,700 Talisman Energy* ..................... 89
------
Denmark (1.3%):
1,398 Novo-Nordisk, Series B ............... 237
------
Finland (3.2%):
10,020 Nokia, ADR ........................... 500
2,054 Sonera Oyj ........................... 93
------
593
------
France (14.0%):
3,900 Alcatel .............................. 255
664 Altran Technologies .................. 130
2,843 Aventis .............................. 207
2,152 AXA# ................................. 338
203 Bouygues* ............................ 135
1,157 Castorama Dubois Investisse .......... 285
704 Coflexip Stena Offshore .............. 85
581 France Telecom# ...................... 81
150 L'Oreal* ............................. 130
310 LVMH Moet-Hennessy Luis Vuitton* ..... 127
1,428 STMicroelectronics# .................. 90
1,000 Societe Television Francaise ......... 69
3,506 Thomson Multimedia*# ................. 226
2,941 Total Fina Elf, Cl B ................. 450
------
2,608
------
Germany (8.4%):
663 Allianz* ............................. 240
200 Brainpool TV* ........................ 17
707 Consors Discount-Broker*# ............ 63
2,762 Deutsche Bank ........................ 227
3,673 Deutsche Telekom ..................... 208
1,441 Epcos ................................ 145
1,599 HypoVereinsbank ...................... 104
684 Infineon Technologies ................ 54
114 Infineon Technologies, ADR* .......... 9
554 Muenchener Rueckversicher* ........... 175
1,839 SAP, ADR ............................. 86
1,534 Siemens .............................. 230
------
1,558
------
Hong Kong (5.0%):
47,000 Cathay Pacific Airways ............... 87
22,354 China Telecom ........................ 197
2,000 China Unicom* ........................ 4
52,000 Giordano ............................. 79
10,519 HSBC Holdings* ....................... 120
14,804 Hutchison Whampoa* ................... 186
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
(000) DESCRIPTION (000)
---------- ----------------------------------- -----------------
FOREIGN COMMON STOCK, CONTINUED:
17,418 Johnson Electric Holdings* ........... $ 165
18,000 Li & Fung ............................ 90
------
928
------
Ireland (0.5%):
1,800 Parthus Technologies* ................ 5
11,800 Ryanair Holdings* .................... 87
------
92
------
Israel (1.0%):
400 Check Point Software ................. 85
1,700 Teva Pharmaceutical .................. 94
------
179
------
Italy (5.5%):
5,225 Assicurazioni Generali ............... 179
10,500 Banca Intesa ......................... 47
12,780 Bipop-Carire# ........................ 100
11,761 Bulgari* ............................. 157
25,769 Saipem* .............................. 152
15,208 Telecom Italia*# ..................... 209
18,017 Telecom Italia Mobile*# .............. 184
------
1,028
------
Japan (17.0%):
2,400 Canon* ............................... 120
15,208 Chugai Pharmaceutical*# .............. 288
4,517 Daiichi Pharmaceutical # ............. 115
708 Fanuc ................................ 72
2,649 Meitec ............................... 105
8,382 Mitsui Fudosan ....................... 91
11,870 NEC* ................................. 373
12 NTT Docomo* .......................... 325
23,051 Sanyo Electric ....................... 208
18,000 Sekisui House* ....................... 167
1,198 SMC .................................. 226
468 Softbank# ............................ 64
5,443 Takeda Chemical Industries* .......... 357
14,738 Tokio Marine & Fire Insurance ........ 170
533 Tokyo Electron ....................... 73
11,627 Toshiba .............................. 131
5,961 Toyota Motor* ........................ 272
------
3,157
------
Mexico (0.6%):
1,850 Telefonos de Mexico, ADR* ............ 106
------
Netherlands (7.2%):
3,292 Aegon ................................ 117
8,172 Asahi Glass .......................... 91
3,481 Heineken* ............................ 211
2,942 ING Groep ............................ 198
5,041 Philips Electronics .................. 237
542 Qiagen* .............................. 94
3,473 Royal Dutch Petroleum* ............... 215
3,725 Unilever ............................. 170
------
1,333
------
9
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
INTERNATIONAL EQUITY FUND (CONCLUDED)
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ------------------------------- ---------------------
FOREIGN COMMON STOCK, CONTINUED:
Norway (2.0%):
3,500 Norsk Hydro* ........................ $ 147
8,500 Tomra Systems ....................... 225
-------
372
-------
Singapore (2.9%):
15,200 City Developments ................... 59
3,800 Creative Technology ................. 92
14,000 Datacraft Asia ...................... 123
15,573 DBS Group Holdings .................. 200
46,000 Singapore Tech Engineering .......... 68
-------
542
-------
South Korea (1.5%):
4,057 Korea Electric Power, ADR ........... 75
570 Samsung Electronics, GDR ............ 112
2,500 SK Telecom, ADR ..................... 91
-------
278
-------
Spain (2.1%):
9,125 Banco Santander Central Hispano ..... 96
4,467 Endesa* ............................. 86
9,008 Telefonica* ......................... 193
433 Terra Networks* ..................... 17
-------
392
-------
Sweden (0.9%):
7,941 Ericsson, ADR ....................... 159
-------
Switzerland (6.5%):
103 Adecco .............................. 87
5 China Unicom, ADR
493 Credit Suisse Group* ................ 98
15 Disetronic .......................... 100
144 Holderbank Financiere Glarus* ....... 176
65 Julius Baer Holdings ................ 257
121 Nestle* ............................. 242
156 Novartis ............................ 247
-------
1,207
-------
Taiwan (0.9%):
4,182 Taiwan Semiconductor, ADR* .......... 162
-------
United Kingdom (13.6%):
8,462 Abbey National ...................... 101
9,376 Amvescap ............................ 151
7,206 Barclays ............................ 180
31,804 BP Amoco ............................ 306
523 BP Amoco, ADR ....................... 30
1,597 Colt Telecom Group* ................. 53
15,348 Compass Group ....................... 203
28,800 Diageo* ............................. 259
8,052 Marconi ............................. 105
20,656 National Grid Holdings .............. 163
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ----------------------------------- -----------------
FOREIGN COMMON STOCK, CONTINUED:
6,892 Pearson ............................ $ 219
13,972 Scottish Power ..................... 119
8,775 SmithKline Beecham .................. 116
7,187 Standard Chartered .................. 90
107,628 Vodafone Group ...................... 436
-------
2,531
-------
Total Foreign Common Stocks (Cost $13,857) ..... 17,876
-------
COMMON STOCK (0.6%):
1,400 Amdocs Ltd* ......................... 107
-------
Total Common Stock (Cost $104) ................. 107
-------
CASH EQUIVALENT (3.1%):
581,909 Goldman Sachs Financial Square
Premium Money Market Fund, ........ 582
-------
Total Cash Equivalent (Cost $582) .............. 582
-------
Total Investments (Cost $14,551)-- 100.1% ...... 18,565
-------
Other Assets and Liabilities, Net (0.1%) ....... (22)
-------
Total Net Assets -- 100.0% ..................... $18,543
=======
------------------
* NON-INCOME PRODUCING SECURITY
# SECURITY FULLY OR PARTIALLY ON LOAN
ADR -- AMERICAN DEPOSITORY RECEIPT
GDR -- GLOBAL DEPOSITORY RECEIPT
CL -- CLASS
LTD -- LIMITED
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
MID CAP GROWTH FUND
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- -------------------------------- --------------------
COMMON STOCK (95.3%):
Air Transportation (1.0%):
12,100 Southwest Airlines ................... $ 229
------
Broadcasting, Newspapers & Advertising (2.4%):
2,100 Univision Communications* ............ 217
10,750 Westwood One* ........................ 367
------
584
------
Communications Equipment (10.5%):
3,900 Carrier Access*# ..................... 206
6,050 Commscope* ........................... 248
3,350 Comverse Technology* ................. 312
2,750 Copper Mountain Networks* ............ 242
2,900 F5 Networks* ......................... 158
1,050 Foundry Networks* .................... 115
3,600 Harmonic* ............................ 89
2,100 Micromuse* ........................... 348
1,700 Redback Networks* .................... 303
3,200 Scientific-Atlanta ................... 238
2,800 Sonicwall* ........................... 247
------
2,506
------
Computer Hardware (1.0%):
4,300 Gateway* ............................. 244
------
Computer Equipment (1.8%):
6,550 Electronics For Imaging* ............. 166
3,900 Lexmark International, Cl A* ......... 262
------
428
------
Computer Software (15.9%):
2,000 Adobe Systems ........................ 260
1,550 Alteon Websystems* ................... 155
3,100 American Power Conversion* ........... 127
4,700 BEA Systems* ......................... 232
3,900 BroadVision* ......................... 198
2,150 Brocade Communications System* ....... 394
1,600 Inktomi* ............................. 189
3,800 Intuit* .............................. 157
3,000 Iona Technologies, ADR* .............. 189
2,300 Macromedia* .......................... 222
2,900 Mercury Interactive* ................. 281
4,150 Rational Software* ................... 386
2,900 Real Network* ........................ 147
6,400 Remedy* .............................. 357
4,500 Symantec* ............................ 243
5,250 Vignette* ............................ 273
------
3,810
------
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ----------------------------------- -----------------
COMMON STOCK, CONTINUED:
Drugs & Health Care (6.8%):
2,500 Alza* ................................ $ 148
5,550 Forest Laboratories* ................. 561
4,500 Immunex*# ............................ 222
3,650 Ivax ................................. 151
3,500 King Pharmaceuticals* ................ 154
3,150 Medimmune* ........................... 233
1,300 Sepracor* ............................ 157
------
1,626
------
Electronics (0.4%):
4,350 Gentex* .............................. 109
------
Energy Services (6.1%):
4,950 BJ Services Companies* ............... 309
9,500 Ensco International .................. 340
9,000 Global Marine* ....................... 254
6,700 Nabors Industries* ................... 278
6,750 Noble Drilling* ...................... 278
------
1,459
------
Entertainment (0.6%):
2,200 Macrovision* ......................... 141
------
Financial Services (1.7%):
4,650 Capital One .......................... 207
2,100 Providian Financial .................. 189
------
396
------
Insurance (1.3%):
6,850 Aflac ................................ 315
------
Medical & Medical Services (3.1%):
3,350 Allergan ............................. 250
10,450 Boston Scientific* ................... 229
2,300 Cytyc* ............................... 123
3,500 Stryker .............................. 153
------
755
------
Men's Clothing (1.2%):
13,150 Men's Wearhouse* ..................... 293
------
Miscellaneous Business Services (5.6%):
7,500 American Management Systems .......... 246
15,700 Concord EFS* ......................... 408
2,650 Fiserv* .............................. 115
5,550 Jack Henry & Associates .............. 278
6,800 Paychex .............................. 286
------
1,333
------
Petroleum & Fuel Products (1.3%):
5,250 Apache ............................... 309
------
11
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
MID CAP GROWTH FUND (CONCLUDED)
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
------------- ---------------------------- ---------------------
COMMON STOCK, CONTINUED:
Professional Services (3.1%):
7,350 Marchfirst* ......................... $ 134
8,150 Robert Half International* .......... 232
1,400 Sapient* ............................ 150
7,700 Viant* .............................. 228
-------
744
-------
Restaurants (0.8%):
8,000 Jack In The Box* .................... 197
-------
Retail (2.9%):
10,850 BJ's Wholesale Club* ................ 358
2,650 Circuit City ........................ 88
12,650 Family Dollar Stores ................ 247
-------
693
-------
Semi-Conductors/Instruments (16.2%):
5,400 Advanced Micro Devices* ............. 417
2,300 Applied Micro Circuits* ............. 227
2,650 Atmel* .............................. 98
3,950 Conexant Systems* ................... 192
4,750 Cypress Semiconductor* .............. 201
3,500 Dallas Semiconductor ................ 143
3,350 Fairchild Semiconductor, Cl A* ...... 136
4,800 Integrated Device Technology* ....... 287
4,200 KLA-Tencor* ......................... 246
3,050 LSI Logic*# ......................... 165
2,450 Microchip Technology ................ 143
3,300 National Semiconductor* ............. 187
4,150 Novellus Systems* ................... 235
3,450 Qlogic* ............................. 228
3,500 RF Micro Devices* ................... 307
3,650 Sawtek* ............................. 210
3,450 Teradyne* ........................... 254
2,800 Vitesse Semiconductor* .............. 206
-------
3,882
-------
Technology (3.7%):
7,000 Jabil Circuit*# ..................... 347
4,500 Sanmina* ............................ 385
2,750 Symbol Technologies ................. 148
-------
880
-------
Telephone & Telecommunication (6.8%):
2,000 Allegiance Telecom* ................. 128
22,650 McLeodUSA, CL A*# ................... 469
2,650 Nextlink Communications, Cl A* ...... 101
4,750 SBA Communications* ................. 247
1,400 Voicestream Wireless*# .............. 163
9,950 Winstar Communications*# ............ 337
3,600 Wireless Facilities* ................ 183
-------
1,628
-------
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ----------------------------------- -----------------
COMMON STOCK, CONTINUED:
Testing Laboratories (1.1%):
850 Affymetrix* ......................... $ 140
2,050 PE Biosystems ....................... 135
-------
275
-------
Total Common Stock (Cost $19,126) .............. 23,336
-------
U.S. GOVERNMENT AGENCY (2.1%):
$500,000 Federal National Mortgage Association
6.400%+, 07/05/00 ................. 500
-------
Total U.S. Government Agency (Cost $500) ....... 500
-------
CASH EQUIVALENT (4.2%):
997,327 Goldman Sachs Financial Prime Obligation
Money Market Fund ................. 997
-------
Total Cash Equivalent (Cost $997) .............. 997
-------
Total Investments (Cost $20,623) -- 101.6% ..... 24,333
-------
Other Assets and Liabilities, Net (1.6%)% ...... (374)
-------
Total Net Assets -- 100.0% ...................... $23,959
=======
---------------------
* NON-INCOME PRODUCING SECURITY
# SECURITY FULLY OR PARTIALLY ON LOAN
+ EFFECTIVE YIELD
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
SMALL CAP GROWTH FUND
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ------------------------------ ----------------------
COMMON STOCK (86.9%):
Air Transportation (0.9%):
4,400 Atlas Air* .......................... $ 158
-------
Banks (0.9%):
5,800 Cullen Frost Bankers ................ 153
-------
Broadcasting, Newspapers & Advertising (0.8%):
2,100 Citadel Communications* ............. 73
3,300 Spanish Broadcasting Systems, Cl A* . 68
-------
141
-------
Building & Construction Supplies (1.6%):
3,050 Insituform Technologies* ............ 83
3,600 Trex* ............................... 180
-------
263
-------
Business Services (1.3%):
2,100 American Management Systems ......... 69
2,600 Corporate Executive Board* .......... 156
-------
225
-------
Communications Equipment (10.3%):
4,500 Act Manufacturing*# ................. 209
1,600 Anaren Microwave* ................... 210
1,400 AudioCodes .......................... 168
3,000 Carrier Access*# .................... 159
5,500 C-Cor.Net* .......................... 148
4,900 Commscope* .......................... 201
3,300 Digital Microwave* .................. 126
3,550 Mercury Computer Systems* ........... 115
1,800 Sawtek* ............................. 104
2,000 Tumbleweed Communications*# ......... 102
1,700 Tut Systems* ........................ 98
1,850 ViaSat* ............................. 100
-------
1,740
-------
Computer Communications Equipment (6.5%):
3,400 Anadigics* .......................... 116
1,000 Micromuse* .......................... 165
4,400 Optimal Robotics* ................... 169
3,700 Paradyne Networks* .................. 120
2,725 RSA Security* ....................... 189
2,700 Sierra Wireless* .................... 145
2,250 Sonicwall* .......................... 198
-------
1,102
-------
Computers (2.6%):
5,000 Advanced Digital Information* ....... 80
2,200 Iona Technologies, ADR* ............. 139
4,500 Rainbow Technologies* ............... 219
-------
438
-------
Computer Design & Programming (0.2%):
2,600 Igate Capital* ...................... 36
-------
Computer Services (0.5%):
2,400 Intranet Solutions* ................. 92
-------
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ----------------------------------- -----------------
COMMON STOCK, CONTINUED:
Computer Software (8.6%):
2,500 Advent Software* .................... $ 161
1,700 Allaire* ............................ 62
2,800 Embarcadero Technologies* ........... 82
3,700 F5 Networks*# ....................... 202
2,500 Insight Enterprises* ................ 148
2,400 Level 8 Systems* .................... 51
1,800 Mercury Interactive* ................ 174
3,400 Metasolv Software* .................. 150
4,100 Novadigm* ........................... 81
3,900 Onyx Software* ...................... 116
4,000 Remedy* ............................. 223
-------
1,450
-------
Drugs & Health Care (3.6%):
2,850 Barr Laboratories* .................. 128
1,100 Incyte Pharmaceuticals* ............. 90
3,200 Priority Healthcare, Cl B* .......... 238
3,400 Tanox* .............................. 161
-------
617
-------
Electronics (1.9%):
2,600 CTS ................................. 117
4,000 Gentex* ............................. 100
2,250 Titan* .............................. 101
-------
318
-------
Entertainment (1.0%):
2,500 Macrovision* ........................ 160
-------
Financial Services (2.5%):
3,900 Compucredit ......................... 117
2,300 Dain Rauscher ....................... 152
6,150 Metris .............................. 154
-------
423
-------
Gas & Natural Gas (1.2%):
6,000 Nicor ............................... 196
-------
Measuring Devices (0.6%):
1,500 Molecular Devices* .................. 104
-------
Medical & Medical Services (6.7%):
1,100 Arthrocare* ......................... 59
3,200 Aspect Medical Systems* ............. 86
1,950 Avigen* ............................. 86
2,000 Caliper Technologies*# .............. 92
16,000 Cardiodynamics International* ....... 100
3,000 Cytyc* .............................. 160
3,800 Datascope* .......................... 137
7,900 Endocare*# .......................... 160
6,000 PolyMedica* ......................... 259
-------
1,139
-------
Petroleum & Fuel Products (7.4%):
3,000 Cal Dive International* ............. 163
6,000 Cross Timbers Oil ................... 133
13
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
SMALL CAP GROWTH FUND (CONCLUDED)
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
------------ ---------------------------- ----------------------
COMMON STOCK, CONTINUED:
Petroleum & Fuel Products, continued:
13,400 Global Industries* .................. $ 253
9,000 Pride International* ................ 223
6,000 UTI Energy* ......................... 241
9,200 Veritas DGC* ........................ 239
-------
1,252
-------
Pharmaceuticals (2.4%):
6,750 King Pharmaceuticals*# .............. 296
14,000 SICOR* .............................. 112
-------
408
-------
Photographic Equipment & Supplies (0.7%):
5,800 Concord Camera* ..................... 121
-------
Printing & Publishing (0.7%):
3,000 Valassis Communications* ............ 114
-------
Restaurants (1.5%):
10,100 Jack In The Box* .................... 249
-------
Retail (3.9%):
3,500 99 Cents Only Stores* ............... 140
5,100 BJ's Wholesale Club* ................ 168
4,200 Michaels Stores* .................... 192
3,300 Too* ................................ 84
2,750 Tweeter Home Entertainment Group* ... 83
-------
667
-------
Semi-Conductors/Instruments (8.2%):
4,900 Asm International* .................. 130
2,400 Asyst Technologies* ................. 82
2,600 Cymer* .............................. 124
3,100 Exar* ............................... 270
3,200 Integrated Silicon Solutions* ....... 122
4,300 Metalink Limited* ................... 127
2,600 Netsilicon*# ........................ 85
1,900 PRI Automation, Cl A* ............... 124
4,100 Quicklogic* ......................... 91
1,700 Transwitch* ......................... 131
1,500 Zoran*# ............................. 99
-------
1,385
-------
Telephone & Telecommunication (5.2%):
6,100 Alamosa PCS Holdings* ............... 127
7,900 ICG Communications * ................ 174
4,200 Intermedia* ......................... 125
2,000 Leap Wireless International* ........ 94
2,500 Mastec* ............................. 95
5,200 SBA Communications* ................. 270
-------
885
-------
Testing Laboratories (4.3%):
2,900 Diversa* ............................ 96
4,500 Gene Logic* ......................... 161
3,700 Genome Therapeutics* ................ 113
1,000 Myriad Genetics* .................... 148
4,600 Sequenom* ........................... 209
-------
727
-------
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ----------------------------------- -----------------
Transportation (0.9%):
3,200 CH Robinson Worldwide ............... $ 158
-------
Total Common Stock (Cost $10,685) .............. 14,721
-------
U.S. GOVERNMENT AGENCY (4.7%):
$800,000 Federal National Mortgage Association
6.400%+, 07/05/00 ................. 799
-------
Total U.S. Government Agency (Cost $799) 799
-------
REPURCHASE AGREEMENT (3.0%):
500,000 Prudential, 6.400%, (dated 06/30/00,
matures 07/03/00, repurchase price
$500,267; collateralized by FHLMC
obligations: total value $511,207) 500
-------
Total Repurchase Agreements (Cost $500) 500
-------
CASH EQUIVALENT (2.3%):
381,188 Goldman Sachs Financial Prime Obligation
Money Market Fund 381
-------
Total Cash Equivalent (Cost $381) 381
-------
Total Investments (Cost $12,365) -- 96.9% 16,401
-------
Other Assets and Liabilities, Net -- 3.1% 531
-------
Total Net Assets -- 100.0% $16,932
=======
-------------------
* NON-INCOME PRODUCING SECURITY
# SECURITY FULLY OR PARTIALLY ON LOAN
+ EFFECTIVE YIELD
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
EQUITY GROWTH FUND
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ------------------------------ ----------------------
COMMON STOCK (96.0%):
Aerospace (0.4%):
350 United Technologies ................. $ 21
-------
Banks (3.7%):
1,200 Bank of New York .................... 56
2,300 MBNA ................................ 62
500 Northern Trust ...................... 33
600 State Street ........................ 64
-------
215
-------
Broadcasting, Newspapers & Advertising (1.2%):
800 Omnicom Group ....................... 71
-------
Business Services (1.8%):
1,300 Automatic Data Processing ........... 70
1,300 Concord EFS* ........................ 34
-------
104
-------
Cable Television (1.1%):
1,600 Comcast, Cl A Special* .............. 65
-------
Chemicals (1.6%):
600 Avery Dennison ...................... 40
976 Pharmacia ........................... 50
-------
90
-------
Communications Equipment (6.2%):
1,300 ADC Telecommunications* ............. 109
1,300 Lucent Technologies ................. 77
2,000 Nortel Networks, ADR ................ 137
650 Qualcomm* ........................... 39
-------
362
-------
Computer Hardware (7.2%):
3,150 Cisco Systems* ...................... 200
2,000 EMC* ................................ 154
700 Sun Microsystems* ................... 64
-------
418
-------
Computer Software (3.2%):
200 BMC Software* ....................... 7
2,200 Microsoft* .......................... 176
-------
183
-------
Computers (2.0%):
250 Hewlett Packard ..................... 31
800 International Business Machines ..... 88
-------
119
-------
Diversified Manufacturing (5.0%):
4,650 General Electric .................... 246
550 Minnesota Mining & Manufacturing .... 45
-------
291
-------
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ------------------------------ ----------------------
COMMON STOCK, CONTINUED:
Drugs & Health Care (10.8%):
800 Amgen* .............................. $ 56
1,200 Bristol-Myers Squibb ................ 70
500 Johnson & Johnson ................... 51
200 Lilly (Eli) ......................... 20
850 Merck ............................... 65
5,950 Pfizer .............................. 286
1,550 Schering-Plough ..................... 78
-------
626
-------
Entertainment (1.0%):
2,400 AT&T-Liberty Media, Cl A* ........... 58
-------
Financial Services (3.4%):
1,350 American Express .................... 70
1,250 Citigroup ........................... 75
600 Fannie Mae .......................... 31
550 Freddie Mac ......................... 22
-------
198
-------
Food & Beverage (1.5%):
200 Coca Cola ........................... 12
1,650 PepsiCo ............................. 73
-------
85
-------
Household Products (1.9%):
1,100 Colgate Palmolive ................... 66
800 Procter & Gamble .................... 46
-------
112
-------
Insurance (3.7%):
1,400 American International Group ........ 165
450 Marsh & McLennan .................... 47
-------
212
-------
Medical & Medical Services (1.0%):
1,150 Medtronic ........................... 57
-------
Miscellaneous Manufacturing (2.6%):
3,150 Tyco International ................... 149
-------
Motorcycle & Motor Scooter (1.1%):
1,700 Harley-Davidson ...................... 65
-------
Office & Business Equipment (1.6%):
700 Lexmark International, Cl A* ......... 47
1,100 Pitney Bowes ......................... 44
-------
91
-------
Paper & Forest Products (0.6%):
1,100 International Paper .................. 33
-------
Personnal Care (0.3%):
450 Gillette ............................. 16
-------
15
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
EQUITY GROWTH FUND (CONCLUDED)
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ------------------------------ ---------------------
COMMON STOCK, CONTINUED:
Petroleum & Fuel Products (2.4%):
800 Burlington Resources ................ $ 31
1,450 Schlumberger ........................ 108
-------
139
-------
Petroleum Refining (4.9%):
700 Chevron ............................. 59
1,200 Coastal ............................. 73
1,900 Conoco .............................. 47
1,350 Exxon Mobil ......................... 106
-------
285
-------
Printing & Publishing (1.4%):
1,100 Time Warner ......................... 84
-------
Retail (8.6%):
1,600 Costco Wholesale* ................... 53
1,850 Home Depot .......................... 92
400 Kroger* ............................. 9
250 Lowe's .............................. 10
1,300 Radioshack .......................... 62
1,200 Safeway* ............................ 54
1,000 Target .............................. 58
1,300 Walgreen ............................ 42
2,100 Wal-Mart ............................ 121
-------
501
-------
Semi-Conductors/Instruments (9.6%):
750 Altera* ............................. 76
1,000 Analog Devices* ..................... 76
700 Applied Materials* .................. 63
1,800 Intel ............................... 241
1,500 Texas Instruments ................... 103
-------
559
-------
Telephone & Telecommunication (5.8%):
1,050 Alltel .............................. 65
900 BellSouth ........................... 38
700 GTE ................................. 44
600 Motorola ............................ 17
1,768 SBC Communications .................. 77
900 Vodafone Group, ADR ................. 37
1,300 Worldcom* ........................... 60
-------
338
-------
Wholesale (0.4%):
600 Sysco ............................... 25
-------
Total Common Stock
(Cost $4,768) .................................. 5,572
-------
MARKET
SECURITY VALUE
SHARES DESCRIPTION (000)
---------- ------------------------------ ----------------------
CASH EQUIVALENT (3.9%):
225,921 Fidelity Domestic Money
Market Fund ....................... $ 226
-------
Total Cash Equivalent (Cost $226) 226
-------
Total Investments (Cost $4,994) -- 99.9% 5,798
-------
Other Assets and Liabilities, Net -- 0.1% 5
-------
Total Net Assets -- 100.0% $ 5,803
=======
------------------
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND (UNAUDITED)
(000)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 2000
--------------------------------------------------------------------
INTERNATIONAL MID SMALL EQUITY
BOND EQUITY CAP GROWTH CAP GROWTH GROWTH
FUND FUND FUND FUND FUND
------ ------------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments at value (Cost $6,980, $14,551,
$20,623, $12,365 and $4,994, respectively) .... $6,875 $18,565 $24,333 $16,401 $5,798
Interest and dividends receivable ................ 74 30 -- 5 4
Receivable for investments sold .................. -- 257 7,217 789 10
Capital shares sold .............................. -- 2 -- -- --
Other Assets ..................................... -- 35 -- 62 --
------ ------- ------- ------- ------
Total Assets ................................ 6,949 18,889 31,550 17,257 5,812
------ ------- ------- ------- ------
LIABILITIES:
Payable for investments purchased ................ -- 167 7,511 292 3
Accrued expenses ................................. 7 35 62 33 6
Other ............................................ 11 144 18 -- --
------ ------- ------- ------- ------
Total Liabilities ........................... 18 346 7,591 325 9
------ ------- ------- ------- ------
Net Assets ....................................... $6,931 $18,543 $23,959 $16,932 $5,803
------ ------- ------- ------- ------
NET ASSETS:
Portfolio Shares
(unlimited authorization -- no par value)
based on 696,585; 971,816; 993,158; 751,320
and 500,010 outstanding shares of
beneficial interest ........................... 6,886 7,821 5,478 8,253 4,998
Accumulated net realized gain/(loss)
on investments and futures .................... (567) 6,763 14,902 4,701 --
Net unrealized appreciation/(depreciation) on
investments and futures ....................... (105) 4,014 3,710 4,048 804
Net investment loss/(loss) ....................... 717 (55) (131) (70) 1
------ ------- ------- ------- ------
Total Net Assets-- 100% .......................... $6,931 $18,543 $23,959 $16,932 $5,803
====== ======= ======= ======= ======
Net Asset Value, Offering and Redemption
Price Per Share ............................... $ 9.95 $ 19.08 $ 24.12 $ 22.54 $11.61
====== ======= ======= ======= ======
The gross unrealized appreciation/(depreciation)
for book purposes which is not materially
different from Federal income tax purposes
is as follows:
Gross Appreciation ............................... $ 50 $ 4,230 $ 4,458 $ 4,526 $1,090
Gross Depreciation ............................... (155) (216) (748) (478) (286)
------ ------- ------- ------- ------
Total ....................................... $ (105) $ 4,014 $ 3,710 $ 4,048 $ 804
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND (UNAUDITED)
(000)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 2000
-------------------------------------------------------------------
INTERNATIONAL MID SMALL EQUITY
BOND EQUITY CAP GROWTH CAP GROWTH GROWTH
FUND FUND FUND FUND FUND
------ ------------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ......................................... $ 264 $ 20 $ 60 $ 51 $ 13
Dividends ........................................ -- 130 5 11 19
Securities lending ............................... -- 2 5 5 --
Less: Foreign taxes withheld ..................... -- (16) -- -- --
------ ------- ------ ------ ----
Total Investment Income ..................... 264 136 70 67 32
------ ------- ------ ------ ----
EXPENSES:
Investment advisory fees ......................... 21 111 121 86 21
Less: fees waived by Investment Adviser .......... -- (3) (3) -- (21)
Administration fees .............................. 7 16 24 17 6
Custodian and accounting fees .................... -- 39 2 3 2
Professional fees ................................ 37 7 45 24 15
Trustees fees .................................... -- 1 -- -- --
Transfer Agent fees .............................. 4 3 3 4 2
Printing and shareholder reports ................. 2 6 6 3 2
Miscellaneous .................................... -- 6 3 -- 4
------ ------- ------ ------ ----
Total Expenses .............................. 71 186 201 137 31
------ ------- ------ ------ ----
Net Investment Income/(Loss) ..................... 193 (50) (131) (70) 1
------ ------- ------ ------ ----
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS:
Net realized gain/(loss) on futures .............. -- (25) 172 36 --
Net realized gain/(loss) on investments .......... (178) 1,886 7,692 2,964 26
Net realized loss on foreign currency
transactions .................................. -- (14) -- -- --
Net change in unrealized appreciation/
depreciation on investments ................... 151 (3,191) (4,690) (1,523) 76
Net change in unrealized appreciation/
depreciation on futures ....................... -- (12) -- 12 --
------ ------- ------ ------ ----
Net gain/(loss) on investments ................... (27) (1,356) 3,174 1,489 102
------ ------- ------ ------ ----
Net increase/decrease in net assets resulting
from operations ............................... $ 166 $(1,406) $3,043 $1,419 $103
====== ======= ====== ====== ====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND
(000)
<TABLE>
<CAPTION>
BOND FUND INTERNATIONAL EQUITY FUND
--------------------------- ---------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 2000 1999 JUNE 30, 2000 1999
------------- ------------ ------------- ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss) ............................... $ 193 $ 524 $ (50) $ (119)
Net realized gain/(loss) on investments, futures and
foreign currency transactions .......................... (178) (365) 1,847 5,369
Net change in unrealized appreciation/depreciation
on investments, futures and foreign currency
transactions ............................................. 151 (418) (3,203) 2,603
------- ------- ------- -------
Net increase/decrease in net assets resulting from operations ... 166 (259) (1,406) 7,853
------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income ....................... -- (627) -- --
Distributions from net realized capital gains .............. -- (111) -- (770)
------- ------- ------- -------
Total Distributions ............................................. -- (738) -- (770)
------- ------- ------- -------
CAPITAL TRANSACTIONS:
Proceeds from shares issued ................................ 377 1,156 429 631
Dividends reinvested ....................................... -- 739 -- 770
Cost of shares redeemed .................................... (1,082) (5,765) (1,064) (6,271)
------- ------- ------- -------
Decrease in net assets from capital transactions ................ (705) (3,870) (635) (4,870)
------- ------- ------- -------
Total increase/(decrease) in net assets ......................... (539) (4,867) (2,041) 2,213
NET ASSETS:
Beginning of year .......................................... 7,470 12,337 20,584 18,371
------- ------- ------- -------
End of year ................................................ $ 6,931 $ 7,470 $18,543 $20,584
======= ======= ======= =======
CAPITAL SHARE TRANSACTIONS:
Issued ..................................................... 39 110 21 42
Reinvested ................................................. -- 76 -- 51
Redeemed ................................................... (111) (547) (53) (418)
------- ------- ------- -------
Change in shares ................................................ (72) (361) (32) (325)
======= ======= ======= =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND
(000)
<TABLE>
<CAPTION>
MID CAP GROWTH FUND SMALL CAP GROWTH FUND EQUITY GROWTH FUND*
----------------------- ------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
2000 1999 2000 1999 2000 1999
----------- ------------ --------- ------------ --------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss) ............. $ (131) $ (265) $ (70) $ (175) $ 1 $ (2)
Net realized gain/(loss) on
investments and futures ................ 7,864 7,336 3,000 1,929 26 (26)
Net change in unrealized
appreciation/depreciation
on investments and futures ............. (4,690) 1,211 (1,511) 1,461 76 728
-------- -------- -------- -------- ------ ------
Net increase in net assets
resulting from operations .................. 3,043 8,282 1,419 3,215 103 700
-------- -------- -------- -------- ------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized
capital gains .......................... -- (1,236) -- (712) -- --
-------- -------- -------- -------- ------ ------
CAPITAL TRANSACTIONS:
Proceeds from shares issued .............. 782 1,749 630 1,640 -- 5,000
Dividends reinvested ..................... -- 1,236 -- 712 -- --
Cost of shares redeemed .................. (2,833) (16,130) (1,590) (10,836) -- --
-------- -------- -------- -------- ------ ------
Increase/(decrease) in net assets from
capital transactions ....................... (2,051) (13,145) (960) (8,484) -- 5,000
-------- -------- -------- -------- ------ ------
Total increase/(decrease) in net assets ....... 992 (6,099) 459 (5,981) 103 5,700
NET ASSETS:
Beginning of period ...................... 22,967 29,066 16,473 22,454 5,700 --
-------- -------- -------- -------- ------ ------
End of period ............................ $ 23,959 $ 22,967 $ 16,932 $ 16,473 $5,803 $5,700
======== ======== ======== ======== ====== ======
CAPITAL SHARE TRANSACTIONS:
Issued ................................... 33 105 27 109 -- 500
Reinvested ............................... -- 74 -- 45 -- --
Redeemed ................................. (119) (951) (69) (706) -- --
-------- -------- -------- -------- ------ ------
Change in shares .............................. (86) (772) (42) (552) -- 500
======== ======== ======== ======== ====== ======
---------------
<FN>
* Fund commenced operations on September 13, 1999.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND JUNE 30, 2000
1. ORGANIZATION:
On May 1, 2000, The Parkstone Advantage Fund changed its name to The Armada
Advantage Fund. The International Discovery, Mid Capitalization and Small
Capitalization Funds changed their names to International Equity, Mid Cap
Growth and Small Cap Growth Funds, respectively. The Armada Advantage Fund
(the "Company") is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end management 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 International Equity Fund,
the Mid Cap Growth Fund, the Small Cap Growth Fund and the Equity Growth
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, 2000, the Participating Insurance
Company for the Bond, International Equity, Mid Cap Growth and Small Cap
Growth Funds is Security Benefit Life Insurance Company. The Participating
Insurance Company for the Equity Growth Fund is Hartford Life Insurance
Company. On June 19, 2000, Hartford Life Insurance Company became a
Participating Insurance Company for the International Equity and Mid Cap
Growth Funds. The Balanced Allocation Fund is registered but has not yet
commenced operations.
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 accounting principles generally accepted in the
United States (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:
An equity or bond fund generally values its investment portfolio at market
price. In the event that a sale of a particular fixed income security is
not reported for that day, fixed income securities are priced at the mean
between the most recent quoted bid and asked prices. Unlisted securities
and securities traded on a national securities market for which market
quotations are not readily available are valued at the mean between the
most recent bid and asked prices. In the event that a sale of a particular
equity security is not reported for that day, shares are priced at the last
bid quotation. If market prices are unavailable or a Fund thinks that they
are unrealiable, fair value prices may be determined in good faith using
methods approved by the Board of Trustees.
Some Funds hold securities that are listed on foreign exchanges. These
securities may trade on weekends or other days when the Funds do not
calculate NAV. As a result, the market value of these Funds' investments
may change on days when you cannot buy and hold shares of the Funds.
FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the International Equity 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.
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND (CONTINUED) JUNE 30, 2000
The International Equity 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.
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:
Repurchase Agreements are considered loans under the 1940 Act. In
connection therewith, the Company's custodian receives and holds collateral
of not less than 102% of the repurchase price plus accrued interest. If the
value of the collateral falls below this amount, the Company will require
the seller to deposit additional collateral by the next business day. If
the request for additional collateral is not met or the seller defaults on
its repurchase obligation, the Company maintains the right to sell the
underlying securities at market value and any remaining loss may be subject
to legal proceedings.
LENDING PORTFOLIO SECURITIES:
To generate additional income, the Funds 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
National City Investment Management Company ("IMC") to be of good standing
and creditworthy under guidelines established by the Board of Trustees and
when, in the judgment of IMC, 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. The loaned
securities were fully collateralized by cash, U.S. government securities,
short-term corporate notes and repurchase agreements as of June 30, 2000.
As of June 30, 2000, the following Funds had securities with the following
market values on loan:
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND (CONTINUED) JUNE 30, 2000
MARKET MARKET VALUE
VALUE OF OF LOANED
COLLATERAL (000) SECURITIES (000)
---------------- ----------------
International Equity Fund ......... $1,509 $1,509
Mid Cap Growth Fund ............... 3,821 3,819
Small Cap Growth Fund ............. 1,312 1,311
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
The Funds will make distributions from net investment income and net
realized capital gains on investments, if any, annually.
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.
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. On the statement of net assets the following adjustments were
made:
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT NET INVESTMENT PAID-IN-
FUND GAIN (000) INCOME (000) CAPITAL (000)
---- -------------- --------------- ------------
International Equity Fund .... (170) 170 --
Mid Cap Growth Fund .......... (265) 265 --
Small Cap Growth Fund ........ (175) 175 --
Equity Growth Fund ........... -- 2 (2)
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.
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, 2000 are recorded
for financial reporting purposes as unrealized gains and losses by the
Funds. The following forwards were open at June 30, 2000.
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND (CONTINUED) JUNE 30, 2000
<TABLE>
<CAPTION>
CONTRACTS IN UNREALIZED
TO (DELIVER)/ EXCHANGE APPRECIATION
RECEIVE FOR SETTLEMENT (DEPRECIATION)
FUND (000) (000) DATE (000)
------ -------- -------- ---------- -------------
<S> <C> <C> <C> <C>
INTERNATIONAL EQUITY FUND
FOREIGN CURRENCY SALES:
Swiss Franc ............... CH (96) $(59) 07/05/00 $--
FOREIGN CURRENCY PURCHASES:
Swiss Franc ............... CH 42 $ 26 07/03/00 --
Danish Krone .............. DK 181 $ 23 07/03/00 --
</TABLE>
FUTURES CONTRACTS:
Certain of the Funds may engage in futures contracts for the purpose of
hedging against the value of the portfolio securities held and in the value
of the securities a Fund intends to purchase, in order to maintain
liquidity. Upon entering into a futures contract, a Fund is required to
deposit with the broker an amount of cash or cash equivalents equal to a
certain percentage of the contract amount. This is known as the "initial
margin". Subsequent payments ("variation margin") are made or received by a
Fund each day, depending on the daily fluctuation of the value of the
contract. The daily changes in the contract are recorded as unrealized gain
or loss. The Fund recognizes a realized gain or loss when the contact is
closed. The net unrealized appreciation/(depreciation), if any, is shown in
the financial statements.
There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily
corresponds with the value of their underlying instruments, which may not
correlate with the change in value of the hedged investments. In addition,
there is the risk that the Fund may not be able to enter into a closing
transaction because of an illiquid secondary market.
Financial futures contracts open at June 30, 2000 were as follows:
<TABLE>
<CAPTION>
NUMBER NOTIONAL UNREALIZED
OF COST AMOUNT EXPIRATION GAIN/(LOSS)
FUND CONTRACTS (000) DATE (000)
------ --------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
INTERNATIONAL EQUITY FUND --
DAX Index 1 $178 Sep-00 $(12)
Topix Index 1 161 Jun-00 (1)
SMALL CAP GROWTH FUND --
Russell 2000 Index 3 772 Sept-00 12
</TABLE>
MORTGAGE DOLLAR ROLLS:
For the purpose of enhancing the Fund's yield, the BondFund may enter into
mortgage dollar rolls (principally in TBA's) in which the Fund sells
mortgage securities for delivery in the current month and simultaneously
contacts to repurchase similar, but not identical, securities at an
agreed-upon price on a fixed date. The Fund accounts for such dollar rolls
as purchases and sales and maintains liquid high-grade securities in an
amount at least equal to its commitment to repurchase.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses for the Company are pro-rated to the
Funds on the basis of relative net assets.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND (CONTINUED) JUNE 30, 2000
3. INVESTMENT RISKS:
The International Equity 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.
4. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities and U.S.
Government obligations) for the period ended June 30, 2000, are as follows:
PURCHASES (000) SALES (000)
--------------- -----------
Bond Fund ........................ $ 2,702 $ 3,106
International Equity Fund ........ 11,982 12,397
Mid Cap Growth Fund .............. 21,601 23,704
Small Cap Growth Fund ............ 10,350 12,366
Equity Growth Fund ............... 716 729
Purchases and sales of long-term U.S. Government obligations were:
PURCHASES (000) SALES (000)
--------------- -----------
Bond Fund ........................ $ 4,473 $4,459
As of June 30, 2000 the following Funds have a capital loss carryforward:
EXPIRATION
FUND AMOUNT (000) DATE
----- ------------ ----------
Bond Fund ........................ $338 2007
Equity Growth Fund ............... 26 2007
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.
Effective July 6, 1999, SEI Investments Mutual Funds 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.
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
THE ARMADA ADVANTAGE FUND (CONTINUED) JUNE 30, 2000
<TABLE>
<CAPTION>
INTERNATIONAL MID SMALL EQUITY
BOND EQUITY CAP GROWTH CAP GROWTH GROWTH
FUND FUND FUND FUND FUND
------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee
(percentage of average net assets) 0.55%(a) 1.15%(b) 1.00% 1.00% 0.75%(c)
ADMINISTRATION FEES:
Annual fee
(percentage of average net assets) 0.20% 0.20% 0.20% 0.20% 0.20%
----------
<FN>
(a) The contractual Investment Advisory fee was lowered from 0.74% to 0.55%
effective October 1, 1999.
(b) The contractual Investment Advisory fee was lowered from 1.25% to 1.15%
effective October 1, 1999.
(c) The advisor is voluntarily waiving the full Investment Advisory fee. Fee
waivers are voluntary and may change.
</FN>
</TABLE>
Fees may be voluntarily reduced or reimbursed to assist the Funds in
maintaining competitive expense ratios.
Each Trustee receives an annual fee of $15,000 plus $3,000 for each Board
meeting attended and reimbursement of out-of-pocket expenses. The Chairman
of the Board receives an additional $5,000 per annum for services in such
capacity. The Trustees and Chairman fees are paid for services rendered to
all of the Funds and are allocated on a prorata basis across the portfolios
of Armada Funds, The Armada Advantage Fund and, prior to completion of
reorganization into Armada Funds on June 16, 2000, Parkstone Group of
Funds. No person who is an officer, director, trustee, or employee of IMC,
SEI Investments Distribution Co., or any parent or subsidiary thereof, who
serves as an officer, trustee, or employee of the Company receives any
compensation from theCompany.
Trustees who receive fees are eligible for participation in the Company's
Deferred Compensation Plan (the "Plan"), an unfunded, nonqualified deferred
compensation plan. The Plan allows each eligible Trustee to defer receipt
of all or a percentage of fees that would otherwise be payable for services
performed.
26
<PAGE>
NOTES
--------------------------------------------------------------------------------
<PAGE>
NOTES
--------------------------------------------------------------------------------
<PAGE>
Board of Trustees
ROBERT D. NEARY
CHAIRMAN
Retired Co-Chairman, Ernst & Young
Director:
Cold Metal Products, Inc. ROBERT J. FARLING
Strategic Distribution, Inc. Retired Chairman, President and Chief
Executive Officer, Centerior Energy
HERBERT R. MARTENS, JR.
PRESIDENT RICHARD W. FURST
Executive Vice President, Garvice D. Kincaid Professor of Finance
National City Corporation and Dean, Gatton College of Business
Chairman, President and Chief Executive and Economics, University of Kentucky
Officer, NatCity Investments,Inc. Director:
Foam Design, Inc.
LEIGH CARTER The Seed Corporation
Retired President and Chief Operating Office Suites Plus, Inc.
Officer, B.F. Goodrich Company ihigh.com, Inc.
Director:
Kirtland Capital Corporation GERALD L. GHERLEIN
Morrison Products Retired Executive Vice President and
TruSeal Technologies General Counsel, Eaton Corporation
JOHN F. DURKOTT J. WILLIAM PULLEN
President and Chief Operating Officer, President and Chief Executive Officer,
Kittle's Home Furnishings Center, Inc. Whayne Supply Company
The Armada Advantage Fund Trustees also serve as the Trustees of Armada Funds.
They served as Trustees of The Parkstone Group of Funds until the completion of
its reorganization into Armada Funds on June 16, 2000.
[Armada Advantage logo omitted]
<PAGE>
FIRST CLASS MAIL
[Armada Advantage logo omitted] U.S. POSTAGE
One Freedom Valley Drive PAID
Oaks, PA 19456 CLEVELAND OHIO
PERMIT # 1535
INVESTMENT ADVISOR:
NATIONAL CITY(R)
INVESTMENT MANAGEMENT COMPANY
1900 East Ninth Street, 22nd Floor
Cleveland, OH 44114
ARM-F-012-01000 (6/00)
