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Sunstone Financial Group, Inc.
207 East Buffalo Street
Suite 400
Milwaukee, WI 53202
(414) 271-5885
July 9, 1996
Securities and Exchange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, D.C. 20549
Re: The Aquinas Funds, Inc. Semi-Annual Report
Filing Pursuant to Rule 30b2-1
under the Investment Company Act of 1940
SEC File No. 811-8122, 33-70978
Dear Sir/Madam:
On behalf of the Aquinas Funds Inc. (the "Fund"), transmitted herewith for
filing pursuant to Rule 30b2-1 under the Investment Company Act of 1940, as
amended, is the Fund's Semi-Annual Report to the shareholders for the six months
ended June 30, 1996.
Questions regarding this filing should be directed to the undersigned.
Sincerely,
/s/ Richard P. Snyder
Richard P. Snyder
Client Services and Accounting Manager
RPS/sb
Encl.
AQUINAS FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 1996
DEAR AUGUST 1996
SHAREHOLDER:
1996 continues the success of the Aquinas Funds. Good returns from good
companies are what our investors want. The equity funds have been consistently
strong performers during the first six months, and have benefited from the
market's demand for equities. BOTH EQUITY GROWTH AND EQUITY INCOME FUNDS HAVE
BEEN TOP PERFORMERS IN THEIR RESPECTIVE CATEGORIES DURING 1996.
1 YEAR AVERAGE ANNUAL
TOTAL RETURNS 6/30/96 SINCE INCEPTION<F1>
------------- ------- ------------------
Aquinas Equity Growth 27.47% 13.80%
Aquinas Equity Income 22.92% 15.44%
Aquinas Balanced 16.67% 10.37%
Aquinas Fixed Income 3.76% 4.15%
<F1> Inception date: January 3, 1994. Returns shown include the reinvestment of
dividends. Performance reflects fee waivers in effect. Absent fee waivers, total
returns would be reduced. Past performance is not predictive of future results.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than the original cost.
OUR FUNDS ARE DESIGNED FOR LONG-TERM INVESTORS AND WE DO NOT ATTEMPT TO TIME THE
MARKET. Is the market too high now? This question implies that you know when the
market will next go up or down. For market timers, the challenge is not just to
recognize when the high is reached; but, also to know when the low is reached
AND to be sure that not one day is missed when the market rebounds BECAUSE
SIGNIFICANT PROFITS CAN BE MADE AT THE BEGINNING OF A MARKET RALLY.
While we are very attuned to market and economic conditions, our long-term
investment approach ignores market timing, and is devoted to selecting the best
securities available. Our portfolio is broadly diversified to provide the best
relative returns with the lowest associated risks. We do not use leverage or
exotic high-risk financial instruments to "turbo-charge" our portfolios, nor do
we place a large part of the portfolio in a "sector bet." Our disciplined
approach is not moved by the emotion of the day, and neither should you.
The fixed income markets have been on a roller coaster since early 1994 when
interest rates zoomed up and then plunged in 1995. In 1996 they have moved up
again and this rapid movement has reduced fixed income financial instrument
prices. Patience is required when investing in the fixed income markets because
of the natural rise and fall of interest rates. While the rapid and steep
movements of the past few years may give concern to some, the keys to long-term
investing include an understanding that the interest rate cycle exists and that
very few people have long-term success at forecasting interest rates. The
Aquinas Funds do not bet on interest rate movements; however, we do take
advantage of quantitative methods to enhance investment returns.
OUR SOCIALLY RESPONSIBLE INVESTING ACTIVITIES include working to obtain
statements from six major drug companies that they will not be involved in the
French abortion pill RU-486, securing a commitment from a major bank to
diversify its board, promoting the reduction in violence on television, and
supporting the passage of V-chip legislation to put more power into the hands of
parents to control television viewing by children. We view these and other
success stories as a tangible sign that corporate America can be responsible,
civic minded and profitable simultaneously. OUR INVESTORS ARE REWARDED BY
FINANCIAL AND MERITORIOUS RETURNS AS WE WORK TOGETHER TO ACCOMPLISH ETHICAL AND
RESPONSIBLE CORPORATE BEHAVIOR.
Thank you for investing with us. It is a privilege to assist you in the
achievement of your objectives.
Sincerely,
/s/ Bernard P. DiFiore
Bernard P. DiFiore
President and Treasurer
<TABLE>
AQUINAS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<CAPTION>
FIXED INCOME EQUITY INCOME EQUITY GROWTH BALANCED
FUND FUND FUND FUND
------------ ------------- ------------ --------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $35,482,509,
$39,939,106, $15,390,873 and $24,647,720,
respectively) $35,276,459 $47,418,281 $18,926,892 $27,883,686
Interest and dividends receivable 495,921 124,028 9,623 184,169
Receivable for securities sold 302,006 180,187
Prepaid expenses 13,881 11,830 7,411 8,477
Organizational expenses, net of
accumulated amortization 7,333 7,333 7,333 7,333
----------- ----------- ----------- -----------
Total assets 35,793,594 47,561,472 19,253,265 28,263,852
----------- ----------- ----------- -----------
LIABILITIES:
Payable for securities purchased -- -- 443,889 328,775
Dividend payable 150,191 230,177 -- 153,005
Accrued expenses 21,611 20,423 15,536 21,416
Accrued investment advisory fee 16,889 39,063 15,174 22,916
----------- ----------- ----------- -----------
Total liabilities 188,691 289,663 474,599 526,112
----------- ----------- ----------- -----------
NET ASSETS $35,604,903 $47,271,809 $18,778,666 $27,737,740
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Capital stock $ 366 $ 371 $ 136 $ 237
Paid-in-capital in excess of par 36,321,856 37,896,489 14,052,543 23,288,709
Undistributed net investment income (loss) 16,904 (49,480) 2,940
Undistributed net realized (loss) gain
on investments (528,173) 1,895,774 1,239,448 1,209,888
Net unrealized (depreciation) appreciation
on investments (206,050) 7,479,175 3,536,019 3,235,966
----------- ----------- ----------- -----------
Net assets $35,604,903 $47,271,809 $18,778,666 $27,737,740
=========== =========== =========== ===========
CAPITAL STOCK, $.0001 PAR VALUE
Authorized 125,000,000 125,000,000 125,000,000 125,000,000
Issued and outstanding 3,660,161 3,713,962 1,362,488 2,373,172
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $9.73 $12.73 $13.78 $11.69
===== ====== ====== ======
See notes to financial statements.
</TABLE>
<TABLE>
AQUINAS FUNDS
STATEMENTS OF OPERATIONS
FOR THE PERIOD JANUARY 1, 1996 TO JUNE 30, 1996 (UNAUDITED)
<CAPTION>
FIXED INCOME EQUITY INCOME EQUITY GROWTH BALANCED
FUND FUND FUND FUND
----------- ------------ ------------- --------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $1,117,038 $ 55,075 $ 17,948 $ 349,663
Dividends -- 678,945 60,899 140,434
----------- ----------- ----------- -----------
1,117,038 734,020 78,847 490,097
----------- ----------- ----------- -----------
EXPENSES:
Investment advisory fees 105,268 226,036 85,532 136,408
Fund administration and accounting fees 33,644 43,332 16,394 26,156
Shareholder servicing fees 15,467 14,299 13,043 14,935
Legal fees 5,189 5,500 1,746 4,480
Pricing fees 4,177 1,477 2,367 6,576
Audit fees 4,158 5,262 1,780 3,110
Federal and state registration fees 3,324 3,512 2,434 1,905
Amortization of organization expenses 1,460 1,460 1,460 1,460
Other 1,203 1,410 423 995
Reports to shareholders 787 883 383 732
Directors' fees 760 950 380 570
Insurance 304 360 136 232
Custody fees 219 2,397 3,707 5,590
----------- ----------- ----------- -----------
Total expenses before waiver 175,960 306,878 129,785 203,149
Waiver of fees (450) -- (1,458) (6,920)
----------- ----------- ----------- -----------
Net expenses 175,510 306,878 128,327 196,229
----------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) 941,528 427,142 (49,480) 293,868
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED (LOSS) GAIN:
Net realized (loss) gain on investments (39,019) 1,980,463 1,261,189 1,239,867
Change in unrealized appreciation/
depreciation on investments (1,523,361) 1,274,258 939,842 336,217
----------- ----------- ----------- -----------
Net (loss) gain on investments (1,562,380) 3,254,721 2,201,031 1,576,084
----------- ----------- ----------- -----------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM OPERATIONS $ (620,852) $ 3,681,863 $ 2,151,551 $ 1,869,952
=========== =========== =========== ===========
See notes to financial statements.
</TABLE>
<TABLE>
AQUINAS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<CAPTION>
FIXED INCOME EQUITY INCOME
FUND FUND
-------------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, 1996 DEC. 31, 1995 JUNE 30, 1996 DEC. 31, 1995
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 941,528 $ 1,827,396 $ 427,142 $ 907,779
Net realized (loss) gain on investments (39,019) 387,462 1,980,463 2,568,064
Change in unrealized appreciation/
depreciation on investments (1,523,361) 2,799,242 1,274,258 7,585,055
----------- ----------- ----------- -----------
Net (decrease) increase in net
assets resulting
from operations (620,852) 5,014,100 3,681,863 11,060,898
----------- ----------- ----------- -----------
DISTRIBUTIONS OF:
Net investment income (930,539) (1,835,221) (431,609) (919,555)
Net realized gains -- -- -- (1,995,841)
----------- ----------- ----------- -----------
Total distributions (930,539) (1,835,221) (431,609) (2,915,396)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 2,374,449 8,894,331 4,355,777 5,469,235
Shares issued to holders in
reinvestment of dividends 726,512 1,816,185 190,007 3,116,750
Shares redeemed (1,561,518) (6,419,602) (2,626,608) (6,845,993)
----------- ----------- ----------- -----------
Net increase (decrease) 1,539,443 4,290,914 1,919,176 1,739,992
----------- ----------- ----------- -----------
TOTAL (DECREASE) INCREASE IN
NET ASSETS (11,948) 7,469,793 5,169,430 9,885,494
NET ASSETS:
Beginning of period 35,616,851 28,147,058 42,102,379 32,216,885
----------- ----------- ----------- -----------
End of period $35,604,903 $35,616,851 $47,271,809 $42,102,379
=========== =========== =========== ===========
</TABLE>
<TABLE>
AQUINAS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (cont'd)
(Unaudited)
<CAPTION>
EQUITY GROWTH BALANCED
FUND FUND
-------------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, 1996 DEC. 31, 1995 JUNE 30, 1996 DEC. 31, 1995
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (49,480) $ (12,422) $ 293,868 $ 869,085
Net realized (loss) gain on investments 1,261,189 907,467 1,239,867 1,793,984
Change in unrealized appreciation/
depreciation on investments 939,842 2,318,801 336,217 3,484,654
----------- ----------- ----------- -----------
Net (decrease) increase in net
assets resulting
from operations 2,151,551 3,213,846 1,869,952 6,147,723
----------- ----------- ----------- -----------
DISTRIBUTIONS OF:
Net investment income -- -- (293,569) (878,699)
Net realized gains -- -- -- (568,623)
----------- ----------- ----------- -----------
Total distributions -- -- (293,569) (1,447,322)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 1,889,535 3,722,084 512,429 1,867,499
Shares issued to holders in
reinvestment of dividends -- 11,612 136,440 1,562,410
Shares redeemed (1,174,078) (1,140,257) (1,266,329) (11,465,880)
----------- ----------- ----------- -----------
Net increase (decrease) 715,457 2,593,439 (617,460) (8,035,971)
----------- ----------- ----------- -----------
TOTAL (DECREASE) INCREASE IN
NET ASSETS 2,867,008 5,807,285 958,923 (3,335,570)
NET ASSETS:
Beginning of period 15,911,658 10,104,373 26,778,817 30,114,387
----------- ----------- ----------- -----------
End of period $18,778,666 $15,911,658 $27,737,740 $26,778,817
=========== =========== =========== ===========
See notes to financial statements.
</TABLE>
<TABLE>
AQUINAS FUNDS
FINANCIAL HIGHLIGHTS
(UNAUDITED)
<CAPTION>
FIXED INCOME EQUITY INCOME
FUND FUND
------------------------------------------- --------------------------------------------
Six Months Year Jan. 3, 1994<F2> Six Months Year Jan. 3, 1994<F2>
ended ended through ended ended through
June 30, 1996 Dec. 31, 1995 Dec. 31, 1994 June 30, 1996 Dec. 31, 1995 Dec. 31, 1994
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $10.17 $9.24 $10.00 $11.83 $9.39 $10.00
Income from investment operations:
Net investment income (loss) 0.26 0.54 0.46 0.12 0.28 0.32
Net realized and unrealized
(losses) gains on investments (0.44) 0.93 (0.77) 0.89 3.03 (0.61)
------- ------- ------- ------- ------- -------
Total from investment operations (0.18) 1.47 (0.31) 1.01 3.31 (0.29)
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment
income (0.26) (0.54) (0.45) (0.11) (0.28) (0.32)
Distributions from net
realized gains -- -- -- -- (0.59) --
------- ------- ------- ------- ------- -------
Total distributions (0.26) (0.54) (0.45) (0.11) (0.87) (0.32)
------- ------- ------- ------- ------- -------
Net asset value, end of period $9.73 $10.17 $9.24 $12.73 $11.83 $9.39
===== ====== ===== ====== ====== =====
Total return<F3> (1.77)% 16.26% (3.09)% 8.61% 35.62% (2.93)%
Supplemental data and ratios:
Net assets, end of period
(in thousands) $35,605 $35,617 $28,147 $47,272 $42,102 $32,217
Ratio of net expenses to average
net assets<F4><F5> 1.00% 0.98% 1.00% 1.36% 1.37% 1.45%
Ratio of net investment income to
average net assets<F4><F5> 5.36% 5.46% 4.84% 1.89% 2.47% 3.33%
Portfolio turnover rate 102% 126% 139% 22% 40% 106%
Average commission rate paid on
portfolio investment transactions N/A N/A N/A $0.0640 N/A N/A
</TABLE>
<TABLE>
AQUINAS FUNDS
FINANCIAL HIGHLIGHTS (CONT'D)
(UNAUDITED)
<CAPTION>
EQUITY GROWTH BALANCED
FUND FUND
------------------------------------------- --------------------------------------------
Six Months Year Jan. 3, 1994<F2> Six Months Year Jan. 3, 1994<F2>
ended ended through ended ended through
June 30, 1996 Dec. 31, 1995 Dec. 31, 1994 June 30, 1996 Dec. 31, 1995 Dec. 31, 1994
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $12.13 $9.31 $10.00 $11.03 $9.43 $10.00
Income from investment operations:
Net investment income (loss) (0.04) (0.01) 0.01 0.12 0.32 0.26
Net realized and unrealized
(losses) gains on investments 1.69 2.83 (0.69) 0.66 1.84 (0.57)
------- ------- ------- ------- ------- -------
Total from investment operations 1.65 2.82 (0.68) 0.78 2.16 (0.31)
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment
income -- -- (0.01) (0.12) (0.33) (0.26)
Distributions from net
realized gains -- -- -- -- (0.23) --
------- ------- ------- ------- ------- -------
Total distributions -- -- (0.01) (0.12) (0.56) (0.26)
------- ------- ------- ------- ------- -------
Net asset value, end of period $13.78 $12.13 $9.31 $11.69 $11.03 $9.43
====== ====== ===== ====== ====== =====
Total return<F3> 13.60% 30.29% (6.78)% 7.12% 23.14% (3.06)%
Supplemental data and ratios:
Net assets, end of period
(in thousands) $18,779 $15,912 $10,104 $27,738 $26,779 $30,114
Ratio of net expenses to average
net assets<F4><F5> 1.50% 1.50% 1.50% 1.44% 1.46% 1.49%
Ratio of net investment income to
average net assets<F4><F5> (0.58)% (0.10)% 0.14% 2.15% 2.93% 2.75%
Portfolio turnover rate 59% 102% 98% 61% 118% 111%
Average commission rate paid on
portfolio investment
transactions $0.0647 N/A N/A $0.0563 N/A N/A
<FN>
<F2>Commencement of operations
<F3>Not annualized
<F4>Annualized
<F5>Net of waivers. Absent waivers, the ratio of net expenses to average net assets would be 1.01%, 0.98% and 1.11% for the Fixed
Income Fund; 1.36%, 1.37% and 1.45% for the Equity Income Fund; 1.52%, 1.61% and 1.76% for the Equity Growth Fund and 1.49%, 1.46%
and 1.49% for the Balanced Fund, respectively. The ratio of net investment income would be 5.35%, 5.46% and 4.73% for the Fixed
Income Fund; 1.89%, 2.47% and 3.33% for the Equity Income Fund; (0.60)%, (0.21)% and (0.12)% for the Equity Growth Fund and 2.10%,
2.93% and 2.75% for the Balanced Fund, respectively.
See notes to financial statements.
</TABLE>
AQUINAS FUNDS
FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
Principal
Amount Value
- - --------- -----
FIXED INCOME BONDS 94.03%
ASSET-BACKED SECURITIES 7.45%
$275,000 Amresco Residential Securities
Mortgage Loan Trust,
8.075%, 04/25/26 $ 274,828
350,000 Chase Manhattan Credit Card Master
Trust, 7.04%, 2/15/04 350,766
375,000 EQCC Home Equity Loan Trust,
8.95%, 1/15/15 395,813
300,000 Ford Credit Auto Trust,
6.50%, 11/15/99 300,797
200,000 Green Tree Financial Corp.,
8.25%, 11/15/19 207,936
250,000 Green Tree Financial Corp.,
6.35%, 12/15/26 246,112
350,000 Premier Auto Trust,
6.50%, 3/6/00 351,094
275,000 UCFC Home Equity Loan Trust,
8.20%, 11/15/27 277,320
251,264 Union Federal Savings Bank Trust,
4.875%, 2/15/00 247,306
-----------
2,651,972
-----------
CORPORATE BONDS 43.93%
400,000 Air Products & Chemicals, Inc.,
4.33%, 9/23/03 398,500
467,000 American Express Credit Corp.,
8.50%, 6/15/99 490,934
525,000 Associates Corp. of North America,
7.75%, 2/15/05 544,031
500,000 BarclaysAmerican Corp.,
7.875%, 8/15/98 512,500
375,000 Chesapeake & Potomac Telephone Co.
of Virginia, 8.375%, 10/1/29 425,156
600,000 Citicorp,
8.00%, 2/1/03 629,250
Principal
Amount Value
- - --------- -----
CORPORATE BONDS 43.93% (cont'd.)
$600,000 Commercial Credit Co.,
7.875%, 2/1/25 $635,250
430,000 Commonwealth Edison Co.,
6.40%, 10/15/05 385,925
250,000 Eaton Corp.,
8.875%, 6/15/19 266,875
440,000 Endesa-Chile Overseas,
7.20%, 4/1/06 429,000
623,000 Ford Holdings, Inc.,
9.25%, 7/15/97 641,690
629,000 General Electric Capital Corp.,
8.30%, 9/20/09 690,328
600,000 General Motors Acceptance Corp.,
8.875%, 6/1/10 670,500
500,000 Grace (W.R.) & Co.,
8.00%, 8/15/04 511,875
300,000 Grand Metropolitan Investment PLC,
7.45%, 4/15/35 305,625
600,000 Heller Financial Corp.,
9.375%, 3/15/98 627,750
425,000 Household Finance Corp.,
6.25%, 10/15/97 425,463
375,000 Lehman Brothers, Inc.,
5.04%, 12/15/03 373,807
250,000 Lehman Brothers, Inc.,
8.05%, 1/15/19 255,000
400,000 Lockheed Martin Corp.,
6.85%, 5/15/01 398,500
200,000 Motorola, Inc.,
8.40%, 8/15/31 229,000
650,000 Nabisco, Inc.,
6.80%, 9/1/01 652,438
350,000 Nabisco, Inc.,
7.55%, 6/15/15 336,875
300,000 NationsBank Corp.,
8.57%, 11/15/24 330,750
CORPORATE BONDS 43.93% (cont'd.)
$ 590,000 New Jersey Bell Telephone Co.,
7.85%, 11/15/29 $ 632,038
500,000 Pacific Gas & Electric Co.,
7.67%, 12/15/98 511,875
750,000 Quebec Province,
6.29%, 3/6/26 718,800
385,000 Rodamco NV,
7.30%, 5/15/05 384,038
400,000 Rollins Truck Leasing Corp.,
7.00%, 3/15/01 400,500
650,000 Southern California Edison Co.,
5.60%, 12/15/98 637,812
605,000 Walt Disney Co.,
1.50%, 10/20/99 512,314
680,000 WMX Technologies, Inc.,
6.65%, 5/15/05 678,300
-----------
15,642,699
-----------
U.S. GOVERNMENT AGENCIES 24.24%
750,000 FHLMC, Series 1576, Class PH,
6.00%, 1/15/08 696,186
725,000 FHLMC, Series 1577, Class PH,
6.30%, 3/15/23 681,420
912,288 FHLMC, Pool D69849,
7.50%, 4/1/26 901,454
525,000 FNMA, 5.20%, 7/10/98 513,781
475,000 FNMA, 4.875%, 10/15/98 460,930
400,000 FNMA, 6.29%, 10/4/00 395,408
400,000 FNMA, 6.08%, 9/3/03 379,476
400,000 FNMA, 6.41%, 3/8/06 383,544
400,000 FNMA, 6.89%, 4/25/06 396,576
488,049 FNMA, 4.75%, 2/25/09 485,809
850,000 FNMA, Series 1994-59, Class PE,
5.00%, 3/25/22 797,986
1,104,281 GNMA, Pool 417223, 7.50%, 1/15/26 1,089,097
227,249 GNMA, Pool 425423, 7.50%, 5/15/26 224,124
U.S. GOVERNMENT AGENCIES
24.24% (cont'd.)
$ 400,000 Guaranteed Export Certificates,
6.28%, 6/15/04 $ 392,800
250,000 Tennessee Valley Authority,
7.85%, 6/15/44 246,875
600,000 Tennessee Valley Authority,
6.235%, 7/15/45 586,500
-----------
8,631,966
-----------
U.S. TREASURY OBLIGATIONS 18.41%
635,000 U.S. Treasury Bond,
8.875%, 8/15/17 762,832
855,000 U.S. Treasury Bond,
8.125%, 5/15/21 963,080
1,540,000 U.S. Treasury Note,
5.50%, 11/15/98 1,516,761
370,000 U.S. Treasury Note,
7.75%, 1/31/00 385,977
1,500,000 U.S. Treasury Note,
6.25%, 8/31/00 1,490,100
400,000 U.S. Treasury Note,
8.00%, 5/15/01 425,524
850,000 U.S. Treasury Note,
7.50%, 2/15/05 894,463
610,000 U.S. Treasury Strips, 2/15/20 114,723
-----------
6,553,460
-----------
Total fixed income bonds
(cost $33,686,147) 33,480,097
-----------
SHORT-TERM INVESTMENTS 5.05%
1,796,362 UMB Bank Money Market
Fiduciary 1,796,362
-----------
Total short-term investments
(cost $1,796,362) 1,796,362
-----------
Total investments 99.08%
(cost $35,482,509) $35,276,459
Cash and other assets
less liabilities 0.92% 328,444
-----------
NET ASSETS 100.00% $35,604,903
===========
See notes to financial statements.
AQUINAS FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
Number
of Shares Value
- - --------- -----
COMMON STOCKS 93.94%
AEROSPACE 1.99%
13,800 Northrop Grumman Corp. $ 940,125
-----------
AUTOMOTIVE RELATED INDUSTRIES 3.04%
7,400 Chrysler Corp. 458,800
30,300 Ford Motor Co. 980,962
-----------
1,439,762
-----------
BANKING 7.07%
16,100 Bankers Trust New York Corp. 1,189,387
6,032 Chase Manhattan Corp. 426,010
22,900 Mellon Bank Corp. 1,305,300
14,200 PNC Bank Corp. 422,450
-----------
3,343,147
-----------
BREWERIES 1.00%
6,300 Anheuser-Busch Cos., Inc. 472,500
-----------
CHEMICALS 5.48%
10,000 Chemed Corp. 373,750
30,000 Crompton & Knowles Corp. 502,500
5,300 Dow Chemical Co. 402,800
5,500 Eastman Chemical Co. 334,812
10,000 Geon Co. 225,000
5,000 Great Lakes Chemical Corp. 311,250
9,000 PPG Industries, Inc. 438,750
-----------
2,588,862
-----------
COMPUTER EQUIPMENT 1.15%
5,500 International Business Machines
Corp. 544,500
-----------
CONSUMER SERVICES 0.30%
7,116 Jostens, Inc. 140,541
-----------
Number
of Shares Value
--------- -----
DRUGS 3.01%
8,400 American Home Products Corp. $ 505,050
5,000 Bristol-Myers Squibb Co. 450,000
10,600 Pharmacia & Upjohn, Inc. 470,375
-----------
1,425,425
-----------
ELECTRIC UTILITIES 2.93%
15,500 DTE Energy Co. 478,563
19,500 PP&L Resources, Inc. 460,687
24,000 Washington Water Power Co. 447,000
-----------
1,386,250
-----------
ELECTRONICS 2.94%
8,000 General Electric Co. 692,000
14,000 Texas Instruments, Inc. 698,250
-----------
1,390,250
-----------
FINANCIAL SERVICES 1.81%
36,330 Bear Stearns Cos., Inc. 858,296
-----------
FOOD 0.94%
14,100 Supervalu, Inc. 444,150
-----------
FOREST AND PAPER PRODUCTS 2.78%
12,000 Champion International Corp. 501,000
11,000 Potlatch Corp. 430,375
9,000 Weyerhaeuser Co. 382,500
-----------
1,313,875
-----------
HEALTH CARE EQUIPMENT
AND SUPPLIES 2.34%
19,000 Bard (C.R.), Inc. 646,000
9,700 Baxter International, Inc. 458,325
-----------
1,104,325
-----------
HOLDING COMPANIES 0.86%
13,100 RJR Nabisco Holdings Corp. 406,100
-----------
HOSPITAL MANAGEMENT &
SERVICES 1.02%
9,000 Columbia/HCA Healthcare Corp. $ 480,375
-----------
HOUSEHOLD APPLIANCES 0.93%
21,000 Maytag Corp. 438,375
-----------
HOUSEHOLD PRODUCTS 1.61%
15,900 Dial Corp. 455,138
7,500 Tambrands, Inc. 306,562
-----------
761,700
-----------
INSURANCE 5.46%
6,100 Aetna Life and Casualty Co. 436,150
12,800 American General Corp. 465,600
9,000 First Colony Corp. 279,000
3,450 General Re Corp. 525,262
4,700 MBIA, Inc. 366,013
3,800 Provident Cos., Inc. 510,600
-----------
2,582,625
-----------
LEISURE 0.85%
20,100 Brunswick Corp. 402,000
-----------
MACHINERY AND EQUIPMENT 0.75%
10,500 Trinity Industries, Inc. 357,000
-----------
METAL PRODUCTS 0.92%
7,600 Aluminum Company of America 436,050
-----------
MINING 3.18%
13,000 Newmont Mining Corp. 641,875
13,800 Phelps Dodge Corp. 860,775
-----------
1,502,650
-----------
NATURAL GAS UTILITIES 3.93%
17,000 Equitable Resources, Inc. 480,250
16,300 NICOR, Inc. 462,513
19,300 Pacific Gas & Electric Co. 448,725
NATURAL GAS UTILITIES 3.93% (cont'd.)
14,000 People's Energy Corp. $ 469,000
-----------
1,860,488
-----------
OFFICE EQUIPMENT 2.03%
7,300 Harris Corp. 445,300
9,600 Xerox Corp. 513,600
-----------
958,900
-----------
OIL AND GAS 13.38%
10,000 Amerada Hess Corp. 536,250
6,100 Amoco Corp. 441,487
3,800 Atlantic Richfield Co. 450,300
16,000 Camco International, Inc. 542,000
9,000 Chevron Corp. 531,000
8,000 Louisiana Land & Exploration Co. 461,000
20,000 PanEnergy Corp. 657,500
12,700 Repsol SA-ADR 441,325
10,100 Texaco, Inc. 847,138
30,100 Ultramar Corp. 872,900
11,000 Williams Cos., Inc. 544,500
-----------
6,325,400
-----------
PERSONAL SERVICES 1.34%
11,000 Service Corp. International 632,500
-----------
PRINTING AND PUBLISHING 2.96%
15,000 Deluxe Corp. 532,500
6,875 Dun & Bradstreet Corp. 429,688
17,800 Harland (John H.) Co. 438,325
-----------
1,400,513
-----------
REAL ESTATE 0.95%
13,400 Meditrust 447,225
-----------
RETAIL 1.99%
8,700 Penney (J.C.) Co., Inc. 456,750
19,000 Wal-Mart Stores, Inc. 482,125
-----------
938,875
-----------
SEMICONDUCTORS 1.34%
8,600 Intel Corp. $ 631,563
-----------
STEEL/IRON 0.43%
4,000 Nucor Corp. 202,500
-----------
TELECOMMUNICATIONS 6.85%
3,800 AT&T Corp. 235,600
18,200 GTE Corp. 814,450
13,200 Pacific Telesis Group 445,500
10,400 Southern New England
Telecommunications Corp. 436,800
11,100 Sprint Corp. 466,200
26,350 US West Communications Group 839,906
-----------
3,238,456
-----------
TEXTILES 1.03%
9,600 Springs Industries, Inc., Class A 484,800
-----------
TOBACCO PRODUCTS 2.47%
10,600 American Brands, Inc. 480,975
6,600 Philip Morris Cos., Inc. 686,400
-----------
1,167,375
-----------
TRANSPORTATION 2.88%
18,000 Alexander & Baldwin, Inc. 434,250
9,400 GATX Corp. 453,550
8,300 PHH Corp. 473,100
-----------
1,360,900
-----------
Total common stocks
(cost $36,929,203) 44,408,378
-----------
SHORT-TERM INVESTMENTS 6.37%
$3,009,903 UMB Bank Money Market
Fiduciary $ 3,009,903
-----------
Total short-term investments
(cost $3,009,903) 3,009,903
-----------
Total investments 100.31%
(cost $39,939,106) 47,418,281
Liabilities less
cash and other assets (0.31)% (146,472)
-----------
NET ASSETS 100.00% $47,271,809
===========
See notes to financial statements.
AQUINAS FUNDS
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
Number
of Shares Value
- - --------- -----
COMMON STOCKS 94.02%
ADVERTISING 0.93%
1,900 Catalina Marketing Corp. <F6> $ 173,850
-----------
AEROSPACE 0.61%
2,000 Rockwell International Corp. 114,500
-----------
AIRLINES AND AIRCRAFT PARTS 0.92%
800 AMR Corp. <F6> 72,800
1,200 Delta Airlines, Inc. 99,600
-----------
172,400
-----------
APPAREL 3.03%
4,600 Gap, Inc. 147,775
1,900 Jones Apparel Group, Inc. <F6> 93,338
4,500 Liz Claiborne, Inc. 155,811
6,000 Nautica Enterprises, Inc. <F6> 172,500
-----------
569,424
-----------
BANKING 1.47%
1,800 BankAmerica Corp. 136,350
1,000 Citicorp 82,625
1,000 First Bank System, Inc. 58,000
-----------
276,975
-----------
BUSINESS SERVICES 6.64%
3,000 Accustaff, Inc. <F6> 81,750
7,000 Ceridan Corp. <F6> 353,500
3,200 Cincinnati Bell, Inc. 166,800
2,000 Danka Business Systems ADR 58,500
9,450 Paychex, Inc. 454,781
4,500 Pittston Brink's Group 131,062
-----------
1,246,393
-----------
CHEMICALS 1.93%
3,500 Allied-Signal, Inc. 199,937
1,700 Praxair, Inc. 71,825
Number
of Shares Value
- - --------- -----
CHEMICALS 1.93% (cont'd.)
1,700 Sigma-Aldrich Corp. $ 90,950
-----------
362,712
-----------
COMMERCIAL SERVICES 0.74%
9,700 National Education Corp. <F6> 138,225
-----------
COMMUNICATIONS 1.33%
4,500 WorldCom, Inc. <F6> 249,188
-----------
COMPUTER COMPONENTS AND
SOFTWARE 6.52%
7,000 American Management Systems, Inc. <F6> 204,750
2,200 BMC Software, Inc. <F6> 131,450
2,200 Cisco Systems, Inc. <F6> 124,575
900 Medic Computer Systems, Inc. <F6> 73,012
1,900 Microsoft Corp. <F6> 228,238
3,200 Parametric Technology Corp. <F6> 138,800
2,900 Shared Medical Systems Corp. 186,325
3,700 Sterling Commerce, Inc. <F6> 137,362
-----------
1,224,512
-----------
COMPUTER EQUIPMENT 0.71%
2,800 Adaptech, Inc. <F6> 132,650
-----------
COMPUTER SERVICES 5.38%
3,100 Electronic Data Systems Corp. 166,625
5,000 Equifax, Inc. 131,250
4,620 First Data Corp. 367,867
2,550 Oracle Systems Corp.<F6> 100,566
6,100 Sungard Data Systems, Inc. <F6> 244,763
-----------
1,011,071
-----------
CONSTRUCTION 0.23%
900 Case Equipment Corp. 43,200
-----------
CONSUMER GOODS 1.13%
6,000 PepsiCo, Inc. 212,250
-----------
CONSUMER SERVICES 0.97%
5,150 CUC International, Inc. <F6> $ 182,825
-----------
DRUGS 4.31%
2,500 Abbott Laboratories 108,750
3,000 Amgen, Inc. <F6> 162,000
3,000 Johnson & Johnson 148,500
1,600 Merck & Co., Inc. 103,400
1,400 Pfizer, Inc. 99,925
1,600 Schering-Plough Corp. 100,400
2,300 Teva Pharmaceutical Industries
Ltd. ADR <F6> 87,112
-----------
810,087
-----------
ELECTRONICS 4.11%
1,500 Atmel Corp. <F6> 45,188
4,200 Diebold, Inc. 202,650
3,300 General Electric Co. 285,450
1,100 Hewlett-Packard Co. 109,587
2,200 Sun Microsystems, Inc. <F6> 129,525
-----------
772,400
-----------
ENTERTAINMENT 1.64%
2,200 MGM Grand, Inc. 87,725
3,500 Walt Disney Co. 220,063
-----------
307,788
-----------
FINANCIAL SERVICES 2.55%
4,500 Capital One Financial Corp. 128,250
1,500 Finova Group, Inc. 73,125
2,100 Merrill Lynch & Co., Inc. 136,763
2,500 SunAmerica, Inc. 141,250
-----------
479,388
-----------
FOOD 1.12%
1,700 ConAgra, Inc. 77,138
600 CPC International, Inc. 43,200
Food 1.12% (cont'd.)
2,600 Sysco Corp. $ 89,050
-----------
209,388
-----------
HEALTHCARE EQUIPMENT AND
SUPPLIES 2.95%
2,000 Boston Scientific Corp. <F6> 90,000
6,400 Guidant Corp. COM. 315,200
5,600 Omnicare, Inc. 148,400
-----------
553,600
-----------
HOLDING COMPANIES 0.47%
1,300 Harsco Corp. 87,425
-----------
HOSPITAL MANAGEMENT
AND SERVICES 3.15%
2,300 HealthCare COMPARE Corp. <F6> 112,125
2,100 HEALTHSOUTH Corp. COM.<F6> 75,600
2,025 Phycor, Inc. <F6> 76,950
4,200 Physician Reliance Network, Inc. <F6> 93,450
5,000 Universal Health Services, Inc., Class B 130,625
3,376 Vencor, Inc. <F6> 102,967
-----------
591,717
-----------
HOTELS 3.42%
1,100 Hilton Hotels Corp. 123,750
6,800 Host Marriott Corp. <F6> 89,250
5,600 Marriott International, Inc. 301,000
4,300 Promus Hotel Corp. <F6> 127,388
-----------
641,388
-----------
HOUSEHOLD PRODUCTS 2.01%
2,200 Gillette Co. 137,225
1,000 Procter & Gamble Co. 90,625
7,700 Staples, Inc. <F6> 150,150
-----------
378,000
-----------
INFORMATION SERVICES 1.12%
2,500 Affiliated Computer Services, Inc. <F6> $ 117,500
2,900 DST Systems, Inc. <F6> 92,800
-----------
210,300
-----------
INSURANCE 2.24%
1,100 American International Group, Inc. 108,487
1,500 MGIC Investment Corp. 84,188
5,300 Reliastar Financial Corp. 228,563
-----------
421,238
-----------
MACHINERY AND EQUIPMENT 1.03%
5,000 Black & Decker Corp. 193,125
-----------
MANUFACTURING 0.72%
3,100 Danaher Corp. 134,850
-----------
MEDIA 2.72%
3,800 Belo (A. H.) Corp. 141,550
1,800 Clear Channel Communications, Inc. <F6> 148,275
2,900 Evergreen Media Corp. <F6> 123,975
3,225 Infinity Broadcasting Corp.,
Class A <F6> 96,750
-----------
510,550
-----------
OIL AND GAS 8.87%
8,700 Baker Hughes, Inc. 286,013
8,200 BJ Services Co. <F6> 288,025
7,000 Dresser Industries, Inc. 206,500
6,600 ENSCO International, Inc. <F6> 214,500
2,700 Halliburton Co. 149,850
1,000 Mobil Corp. 112,125
3,000 Noble Affiliates, Inc. 113,250
2,000 Triton Energy Corp. <F6> 97,250
4,000 Williams Cos., Inc. 198,000
-----------
1,665,513
-----------
RESTAURANTS 2.21%
2,600 McDonald's Corp. $ 121,550
3,600 Outback Steakhouse, Inc. <F6> 124,144
6,000 Starbucks Corp. <F6> 169,500
-----------
415,194
-----------
RETAIL 9.56%
2,500 Albertson's, Inc. 103,437
3,700 AutoZone, Inc. <F6> 128,575
4,500 Barnes & Noble, Inc. <F6> 161,438
4,300 Bed Bath & Beyond, Inc. <F6> 115,025
2,800 Borders Group <F6> 90,300
3,000 Corporate Express, Inc. <F6> 120,000
8,900 Heilig-Meyers Co. 213,600
3,500 Petsmart, Inc. <F6> 167,125
5,600 Price/Costco, Inc. <F6> 121,100
4,600 Safeway, Inc. <F6> 151,800
1,600 Tiffany & Co. 116,800
7,000 Viking Office Products, Inc. <F6> 219,625
2,600 Walgreen Co. 87,100
-----------
1,795,925
-----------
SAVINGS AND LOANS 0.27%
2,436 Washington Federal, Inc. 49,938
-----------
SEMICONDUCTORS 0.24%
1,800 Analog Devices, Inc. <F6> 45,900
-----------
TELECOMMUNICATIONS 3.70%
3,900 ADC Telecommunications, Inc. <F6> 175,500
2,500 Andrew Corp. <F6> 134,375
3,700 Newbridge Networks Corp. <F6> 242,350
3,400 Sprint Corp. 142,800
-----------
695,025
-----------
WASTE DISPOSAL 1.80%
2,000 Sanifill, Inc. <F6> $ 98,500
3,200 United Waste Systems, Inc. <F6> 103,200
4,600 U.S.A. Waste Services, Inc. <F6> 136,275
-----------
337,975
-----------
WHOLESALE 1.27%
3,300 Cardinal Health, Inc. 238,013
-----------
Total common stocks
(cost $14,118,883) 17,654,902
-----------
Principal
Amount
- - ----------
SHORT-TERM INVESTMENTS 6.77%
$1,271,990 UMB Bank Money Market
Fiduciary 1,271,990
-----------
Total short-term investments
(cost $1,271,990) 1,271,990
-----------
Total investments 100.79%
(cost $15,390,873) 18,926,892
Liabilities less
cash and other assets (0.79)% (148,226)
-----------
NET ASSETS 100.00% $18,778,666
===========
<F6>Non-income producing
See notes to financial statements.
AQUINAS FUNDS
BALANCED FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
Number
of Shares Value
--------- -----
COMMON STOCKS 59.02%
ADVERTISING 0.63%
1,900 Catalina Marketing Corp. <F7> $173,850
-----------
AEROSPACE 0.64%
2,400 Northrop Grumman Corp. 177,125
-----------
APPAREL 0.32%
1,800 Jones Apparel Group, Inc. <F7> 88,425
-----------
AUTOMOTIVE RELATED INDUSTRIES 0.90%
1,400 Chrysler Corp. 86,800
5,000 Ford Motor Co. 161,875
-----------
248,675
-----------
BANKING 2.21%
3,200 Bankers Trust New York Corp. 236,400
1,144 Chase Manhattan Corp. 80,795
3,800 Mellon Bank Corp. 216,600
2,700 PNC Bank Corp. 80,325
-----------
614,120
-----------
BREWERIES 0.32%
1,200 Anheuser-Busch Cos., Inc. 90,000
-----------
BUSINESS SERVICES 3.37%
2,900 Accustaff, Inc. <F7> 79,026
4,500 Ceridian Corp. <F7> 227,250
3,200 Cincinnati Bell, Inc. 166,800
1,900 Danka Business Systems ADR 55,575
5,737 Paychex, Inc. <F7> 276,093
4,500 Pittston Brink's Group 131,062
-----------
935,806
-----------
CHEMICALS 2.09%
2,000 Chemed Corp. 74,750
3,000 Crompton & Knowles Corp. 50,250
Number
of Shares Value
- - --------- -----
CHEMICALS 2.09% (cont'd.)
1,100 Dow Chemical Co. $ 76,000
1,100 Eastman Chemical Co. 66,962
2,000 Geon Co. 45,000
900 Great Lakes Chemical Corp. 56,025
1,700 PPG Industries, Inc. 82,875
2,400 Sigma-Aldrich Corp. 128,400
-----------
580,262
-----------
COMMERICAL SERVICES 0.48%
9,400 National Education Corp. <F7> 133,950
-----------
COMPUTER COMPONENTS
AND SOFTWARE 2.76%
6,800 American Management Systems, Inc. <F7> 198,900
2,100 Cisco Systems, Inc. <F7> 118,912
3,000 Parametric Technology Corp. <F7> 130,125
2,900 Shared Medical Systems Corp. 186,325
3,500 Sterling Commerce, Inc. <F7> 129,938
-----------
764,200
-----------
COMPUTER EQUIPMENT 0.39%
1,100 International Business
Machines Corp. 108,900
-----------
COMPUTER SERVICES 1.73%
3,000 First Data Corp. 238,875
6,000 Sungard Data Systems, Inc. <F7> 240,750
-----------
479,625
-----------
CONSUMER SERVICES 0.41%
2,600 CUC International, Inc. <F7> 92,300
1,068 Jostens, Inc. 21,093
-----------
113,393
-----------
DRUGS 1.26%
1,600 American Home Products Corp. 96,200
900 Bristol-Myers Squibb Co. 81,000
DRUGS 1.26% (cont'd.)
2,030 Pharmacia & Upjohn, Inc. $ 90,082
2,200 Teva Pharmaceutical Industries
Ltd. ADR <F7> 83,325
-----------
350,607
-----------
ELECTRIC UTILITIES 0.92%
2,900 DTE Energy Co. 89,538
3,700 PP&L Resources, Inc. 87,412
4,200 Washington Water Power Co. 78,225
-----------
255,175
-----------
ELECTRONICS 1.30%
2,100 Diebold, Inc. 101,325
1,500 General Electric Co. 129,750
2,600 Texas Instruments, Inc. 129,675
-----------
360,750
-----------
ENTERTAINMENT 0.75%
2,100 MGM Grand, Inc. 83,738
2,000 Walt Disney Co. 125,750
-----------
209,488
-----------
FINANCIAL SERVICES 0.85%
6,930 Bear Stearns Cos., Inc. 163,721
1,500 Finova Group, Inc. 73,125
-----------
236,846
-----------
FOOD 0.30%
2,600 Supervalu, Inc. 81,900
-----------
FOREST AND PAPER PRODUCTS 0.89%
2,000 Champion International Corp. 83,500
2,100 Potlatch Corp. 82,162
1,920 Weyerhaeuser Co. 81,600
-----------
247,262
-----------
HEALTH CARE EQUIPMENT
AND SUPPLIES 2.15%
3,000 Bard (C.R.), Inc. $102,000
1,800 Baxter International, Inc. 85,050
4,200 Guidant Corp. 206,850
7,600 Omnicare, Inc. 201,400
-----------
595,300
-----------
HOLDING COMPANIES 0.79%
2,100 Harsco Corp. 141,225
2,500 RJR Nabisco Holdings Corp. 77,500
-----------
218,725
-----------
HOSPITAL MANAGEMENT
AND SERVICES 1.45%
1,600 Columbia/HCA Healthcare Corp. 85,400
4,000 Physician Reliance Network, Inc. <F7> 89,000
4,800 Universal Health Services, Inc.,
Class B 125,400
3,330 Vencor, Inc. <F7> 101,565
-----------
401,365
-----------
HOTELS 1.05%
6,600 Host Marriott Corp. <F7> 86,625
1,500 Marriott International, Inc. 80,625
4,200 Promus Hotel Corp. <F7> 124,425
-----------
291,675
-----------
HOUSEHOLD APPLIANCES 0.28%
3,800 Maytag Corp. 79,325
-----------
HOUSEHOLD PRODUCTS 0.29%
2,800 Dial Corp. 80,150
-----------
INFORMATION SYSTEMS 0.72%
2,400 Affiliated Computer Services, Inc. <F7> 112,800
2,700 DST Systems, Inc. <F7> 86,400
-----------
199,200
-----------
INSURANCE 2.41%
1,000 Aetna Life and Casualty Co. $71,500
2,200 American General Corp. 80,025
3,000 First Colony Corp. 93,000
600 General Re Corp. 91,350
800 MBIA, Inc. 62,300
2,500 Provident Cos., Inc. 92,500
4,100 Reliastar Financial Corp. 176,813
-----------
667,488
-----------
LEISURE 0.27%
3,700 Brunswick Corp. 74,000
-----------
MACHINERY AND EQUIPMENT 0.39%
3,200 Trinity Industries, Inc. 108,800
-----------
MANUFACTURING 0.64%
4,100 Danaher Corp. 178,350
-----------
MEDIA 2.14%
3,700 Belo (A.H.) Corp. 137,825
2,800 Clear Channel Communications, Inc. <F7> 230,650
3,100 Evergreen Media Corp. <F7> 132,525
3,050 Infinity Broadcasting Corp., Class A <F7> 91,500
-----------
592,500
-----------
METAL PRODUCTS 0.29%
1,400 Aluminum Company of America 80,325
-----------
MINING 1.02%
2,700 Newmont Mining Corp. 133,312
2,400 Phelps Dodge Corp. 149,700
-----------
283,012
-----------
NATURAL GAS UTILITIES 1.23%
3,300 Equitable Resources, Inc. 93,225
3,100 NICOR, Inc. 87,962
NATURAL GAS UTILITIES 1.23% (cont'd.)
3,300 Pacific Gas & Electric Co. $ 76,725
2,500 People's Energy Corp. 83,750
-----------
341,662
-----------
OFFICE EQUIPMENT 0.61%
1,200 Harris Corp. 73,200
1,800 Xerox Corp. 96,300
-----------
169,500
-----------
OIL AND GAS 7.89%
2,000 Amerada Hess Corp. 107,250
1,200 Amoco Corp. 86,850
700 Atlantic Richfield Co. 82,950
8,300 Baker Hughes, Inc. 272,862
7,800 BJ Services Co. <F7> 273,975
2,000 Camco International, Inc. 67,750
1,000 Chevron Corp. 59,000
5,000 Dresser Industries, Inc. 147,500
6,400 ENSCO International, Inc. <F7> 208,000
600 Kerr-McGee Corp. 36,525
1,500 Louisiana Land & Exploration Co. 86,438
2,900 Noble Affiliates, Inc. 109,475
2,500 PanEnergy Corp. 82,187
2,400 Repsol SA-ADR 83,400
1,500 Texaco, Inc. 125,812
1,900 Triton Energy Corp. <F7> 92,388
5,800 Ultramar Corp. 168,200
2,000 Williams Cos., Inc. 99,000
-----------
2,189,562
-----------
PERSONAL SERVICES 0.37%
1,800 Service Corp. International 103,500
-----------
PRINTING AND PUBLISHING 1.06%
3,000 Deluxe Corp. 106,500
1,500 Dun & Bradstreet Corp. 93,750
PRINTING AND PUBLISHING 1.06% (cont'd.)
3,800 Harland (John H.) Co. $ 93,575
-----------
293,825
-----------
REAL ESTATE 0.28%
2,300 Meditrust 76,762
-----------
RESTAURANTS 0.42%
4,100 Starbucks Corp. <F7> 115,825
-----------
RETAIL 3.93%
3,500 AutoZone, Inc. <F7> 121,625
3,200 Barnes & Noble, Inc. <F7> 114,800
7,600 Heilig-Meyers Co. 182,400
1,700 Penney (J.C.) Co., Inc. 89,250
3,500 Petsmart, Inc. <F7> 167,125
1,600 Tiffany & Co. 116,800
6,800 Viking Office Products, Inc. <F7> 213,350
3,300 Wal-Mart Stores, Inc. 83,738
-----------
1,089,088
-----------
SEMICONDUCTORS 0.53%
2,000 Intel Corp. 146,875
-----------
STEEL/IRON 0.15%
800 Nucor Corp. 40,500
-----------
TELECOMMUNICATIONS 2.96%
2,400 ADC Telecommunications, Inc. <F7> 108,000
700 AT&T Corp. 43,400
3,100 GTE Corp. 138,725
2,100 Newbridge Networks Corp. <F7> 137,550
2,300 Pacific Telesis Group 77,625
2,000 Southern New England
Telecommunications Corp. 84,000
2,100 Sprint Corp. 88,200
4,500 US West Communications Group 143,438
-----------
820,938
-----------
TEXTILES 0.31%
1,700 Springs Industries, Inc., Class A $ 85,850
-----------
TOBACCO PRODUCTS 0.61%
1,000 American Brands, Inc. 45,375
1,200 Philip Morris Cos., Inc. 124,800
-----------
170,175
-----------
TRANSPORTATION 0.93%
3,500 Alexander & Baldwin, Inc. 84,438
1,800 GATX Corp. 86,850
1,500 PHH Corp. 85,500
-----------
256,788
-----------
WASTE DISPOSAL 0.47%
4,400 U.S.A. Waste Services, Inc. <F7> 130,350
-----------
WHOLESALE 0.86%
3,300 Cardinal Health, Inc. 238,012
-----------
Total common stocks
(cost $13,090,720) 16,369,786
-----------
Principal
Amount
---------
FIXED INCOME BONDS 36.89%
ASSET-BACKED SECURITIES 3.01%
$ 75,000 Amresco Residential Securities Mortgage
Loan Trust, 8.075%, 4/25/26 74,952
100,000 Chase Manhattan Credit Card Master
Trust, 7.04%, 2/15/04 100,219
100,000 EQCC Home Equity Loan Trust,
8.95%, 1/15/15 105,550
125,000 Ford Credit Auto Trust,
6.50%, 11/15/99 125,332
ASSET-BACKED SECURITIES 3.01% (cont'd.)
$ 50,000 Green Tree Financial Corp.,
8.25%, 11/15/19 $ 51,984
75,000 Green Tree Financial Corp.,
6.35%, 12/15/26 73,834
125,000 Premier Auto Trust,
6.50%, 3/06/00 125,391
7,500 UCFC Home Equity Loan Trust,
8.20%, 11/15/27 75,633
102,761 Union Federal Savings Bank Trust,
4.875%, 2/15/00 101,142
-----------
834,037
-----------
CORPORATE BONDS 18.73%
225,000 Associates Corp. of North America,
7.75%, 2/15/05 233,155
225,000 BarclaysAmerican Corp.,
7.875%, 8/15/98 230,625
225,000 Chesapeake & Potomac Telephone
Co. of Virginia, 8.375%, 10/1/29 255,094
200,000 Citicorp,
8.11%, 11/4/04 209,500
130,000 Commercial Credit Co.,
7.875%, 2/1/25 137,638
80,000 Commonwealth Edison Co.,
6.40%, 10/15/05 71,800
70,000 Eaton Corp.,
8.875%, 6/15/19 74,725
130,000 Endesa-Chile Overseas,
7.20%, 4/1/06 126,750
165,000 Ford Holdings, Inc.,
9.25%, 7/15/97 169,950
175,000 General Electric Capital Corp.,
8.30%, 9/20/09 192,062
150,000 General Motors Acceptance Corp.,
8.875%, 6/1/10 167,625
100,000 Grace (W.R.) & Co.,
8.00%, 8/15/04 102,375
CORPORATE BONDS 18.73% (cont'd.)
$125,000 Grand Metropolitan Investment PLC,
7.45%, 4/15/35 $127,344
250,000 Heller Finance Corp.,
9.375%, 3/15/98 261,563
175,000 Household Finance Corp.,
6.25%, 10/15/97 175,191
175,000 Lehman Brothers, Inc.,
5.04%, 12/15/03 174,443
150,000 Lehman Brothers, Inc.,
8.05%, 1/15/19 153,000
120,000 Lockheed Martin Corp.,
6.85%, 5/15/01 119,550
100,000 Nabisco, Inc.,
7.55%, 6/15/15 96,250
150,000 NationsBank Corp.,
8.57%, 11/15/24 165,375
175,000 New Jersey Bell Telephone Co.,
7.85%, 11/15/29 187,469
250,000 Pacific Gas & Electric Co.,
7.67%, 12/15/98 255,937
250,000 Quebec Province,
6.29%, 3/6/26 239,600
115,000 Rodamco NV,
7.30%, 5/15/05 114,712
150,000 Rollins Truck Leasing Corp.,
7.00%, 3/15/01 150,187
175,000 Southern California Edison Co.,
5.60%, 12/15/98 171,719
90,000 Southtrust Corp.,
8.625%, 5/15/04 97,538
100,000 Tenneco, Inc.,
10.00%, 3/15/08 119,500
200,000 U.S. West Capital Funding, Inc.,
8.00%, 10/15/96 201,158
150,000 Virginia Electric & Power Co.,
9.30%, 6/9/99 159,938
CORPORATE BONDS 18.73% (cont'd.)
$300,000 Walt Disney Co.,
1.50%, 10/20/99 $ 254,040
-----------
5,195,813
-----------
U.S. GOVERNMENT AGENCIES 8.91%
100,000 FHLMC, Series 1563, Class E,
4.75%, 3/15/06 94,540
250,000 FHLMC, Series 1576, Class PH,
6.00%, 1/15/08 232,062
75,000 FHLMC, Series 1577, Class PH,
6.30%, 3/15/23 70,492
153,372 FHLMC, Pool D69849,
7.50%, 4/1/26 151,550
152,787 FHLMC, Pool D70098,
7.50%, 4/1/26 150,973
100,000 FNMA, 6.29%, 10/4/00 98,852
100,000 FNMA, 5.72%, 3/8/01 96,296
100,000 FNMA, 6.41%, 3/8/06 95,886
100,000 FNMA, 6.89%, 4/25/06 99,144
50,000 FNMA, Series 1993-191, Class PH,
6.00%, 5/25/08 46,311
292,829 FNMA, Series 1994-15, Class B,
4.75%, 2/25/09 291,486
300,000 FNMA, Series 1994-59, Class PE,
5.00%, 3/25/22 281,642
6,923 GNMA, Pool 031096,
9.50%, 6/15/09 7,403
252,536 GNMA, Pool 417223,
7.50%, 1/15/26 249,063
101,000 GNMA, Pool 425423,
7.50%, 5/15/26 99,611
164,706 Guaranteed Export Certificates,
6.28%, 6/15/04 161,741
100,000 Tennessee Valley Authority,
7.85%, 6/15/44 98,750
U.S. GOVERNMENT AGENCIES 8.91% (cont'd.)
$ 150,000 Tennessee Valley Authority,
6.235%, 7/15/45 $ 146,625
-----------
2,472,427
-----------
U.S. TREASURY OBLIGATIONS 6.24%
240,000 U.S. Treasury Bond,
8.875%, 8/15/17 288,314
235,000 U.S. Treasury Bond,
8.125%, 5/15/21 264,706
140,000 U.S. Treasury Note,
5.50%, 11/15/98 137,887
130,000 U.S. Treasury Note,
7.75%, 12/31/99 135,590
240,000 U.S. Treasury Note,
7.75%, 1/31/00 250,364
150,000 U.S. Treasury Note,
8.00%, 5/15/01 159,572
400,000 U.S. Treasury Note,
7.50%, 2/15/05 420,924
390,000 U.S. Treasury Strips, 2/15/20 73,347
-----------
1,730,704
-----------
Total fixed income bonds
(cost $10,276,081) 10,232,981
-----------
SHORT-TERM INVESTMENTS 4.62%
1,280,919 UMB Bank Money Market
Fiduciary 1,280,919
-----------
Total short-term investments
(cost $1,280,919) 1,280,919
-----------
Total investments 100.53%
(cost $24,647,720) 27,883,686
Liabilities less
cash and other assets (0.53)% $ (145,946)
-----------
NET ASSETS 100.00% $27,737,740
===========
<F7> Non-income producing
See notes to financial statements.
AQUINAS FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
1. ORGANIZATION
The Aquinas Funds, Inc. was incorporated on October 20, 1993 as a Maryland
Corporation and is registered as a diversified open-end management investment
company under the Investment Company Act of 1940. The Fixed Income, Equity
Income, Equity Growth and Balanced Funds (the "Funds") are separate,
diversified portfolios of The Aquinas Funds, Inc. The Funds are managed by
Aquinas Investment Advisers, Inc. (the "Adviser") and commenced operations on
January 3, 1994.
Costs incurred with the organization, initial registration and public offering
of shares aggregating $12,959 for each of the Fixed Income, Equity Income,
Equity Growth and Balanced Funds have been paid by the Funds. These costs were
deferred and are being amortized over a period of not more than five years from
the Funds' commencement of operations. The proceeds of any redemption of the
initial shares by the original shareholder or any transferee will be reduced by
a pro rata portion of any then unamortized deferred organizational expenses in
the same proportion as the number of initial shares being redeemed bears to the
number of initial shares outstanding at the time of such redemption.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - Securities traded over-the-counter or on a national
securities exchange are valued on the basis of market value in their principal
and most representative market. Securities where the principal and most
representative market is a national securities exchange are valued at the latest
reported sale price on such exchange. Exchange-traded securities for which
there were no transactions are valued at the latest reported bid price.
Securities traded on only over-the-counter markets are valued at the latest bid
prices. Debt securities (other than short-term obligations) are valued at
prices furnished by a pricing service, subject to review by the Funds' Adviser
and determination of the appropriate price whenever a furnished price is
significantly different from the previous day's furnished price. Short-term
obligations (maturing within 60 days) are valued on an amortized cost basis,
which approximates value. Securities for which quotations are not readily
available and other assets are valued at fair value as determined in good faith
by the Adviser under the supervision of the Board of Directors.
b) Delayed Delivery Transactions - The Funds may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take place
a month or more after the date of the transaction. The price of the underlying
securities and the date when the securities will be delivered and paid for are
fixed at the time the transaction is negotiated. Losses may arise due to
changes in the market value of the underlying securities or if the counterparty
does not perform under the contract.
c) Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years.
d) Distributions to Shareholders - All of the Funds except the Fixed Income
Fund pay dividends of net investment income quarterly. The Fixed Income Fund
declares and pays dividends of net investment income monthly. Distributions of
net realized gains, if any, will be declared at least annually. Distributions
to shareholders are recorded on the ex-dividend date.
The character of distributions made during the year from net investment income
or net realized gains may differ from the characterization for federal income
tax purposes due to differences in the recognition of income, expense or gain
items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such differences that
are permanent in nature.
e) Expenses - Each Fund is charged for those expenses that are directly
attributable to it, such as investment advisory and custody fees. Expenses that
are not directly attributable to a Fund are typically allocated among the Funds
in proportion to their respective net assets.
f) Other - Investment transactions are accounted for on the trade date plus
one. The Funds determine the gain or loss realized from investment transactions
by comparing the original cost of the security lot sold with the net sale
proceeds. Dividend income is recognized on the ex-dividend date and interest
income is recognized on an accrual basis. Premiums and discounts on securities
purchased are amortized using the level yield maturity method.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
Each of the Funds has entered into an agreement with the Adviser, with whom
certain officers and directors of the Funds are affiliated, to furnish
investment advisory services to the Funds. Under the terms of this agreement,
the Funds will pay the Adviser a fee, computed daily and payable monthly, at the
annual rate of the following percentage on average daily net assets: 0.60% for
the Fixed Income Fund; and 1.00% for the Equity Income, Equity Growth and
Balanced Funds.
The Adviser voluntarily agreed to reimburse its management fee to the extent
that total annual operating expenses (exclusive of interest, taxes, brokerage
commissions and other costs incurred in connection with the purchase or sale of
portfolio securities, and extraordinary items) exceed 1.00% of the average net
assets of the Fixed Income Fund and 1.50% of the average net assets of the
Equity Income, Equity Growth and Balanced Funds, respectively, computed on a
daily basis. Expenses of $450 and $1,458 were waived by the Adviser in the
Fixed Income and Equity Growth Funds, respectively.
Sunstone Financial Group, Inc. (the "Administrator") may periodically
volunteer to reduce all or a portion of its administrative fee with respect to
one or more of the Funds. These waivers may be terminated at any time at the
Administrator's discretion. The Administrator may not seek reimbursement of
such voluntarily reduced fees at a later date. The reduction of such fee will
cause the yield of that Fund to be higher than it would be in the absence of
such reduction. Administrative fees of $6,920 were waived in the Balanced Fund.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Funds from January 1, 1996 through June 30,
1996, were as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
-------- -------- -------- --------
Shares sold 239,761 352,940 142,732 44,724
Shares issued to
holders in
reinvestment of
dividends 73,682 15,311 -- 11,958
Shares redeemed (156,778) (212,086) (92,330) (110,980)
--------- --------- --------- ---------
Net increase (decrease) 156,665 156,165 50,402 (54,298)
========= ========= ========= =========
Transactions in shares of the Funds for the year ended December 31, 1995, were
as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
-------- -------- -------- --------
Shares sold 918,743 478,079 330,069 177,937
Shares issued to
holders in
reinvestment of
dividends 186,127 273,398 1,247 147,765
Shares redeemed (649,025) (625,087) (104,622) (1,090,677)
--------- --------- --------- ---------
Net increase (decrease) 455,845 126,390 226,694 (764,975)
========= ========= ========= =========
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for period from January 1, 1996 to June 30, 1996,
were as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
-------- -------- -------- --------
Purchases
U.S. Government $10,764,634 -- -- $ 2,338,973
Other 24,797,860 $11,257,997 $9,931,110 13,587,058
Sales
U.S. Government 9,920,852 -- -- 1,454,703
Other 24,085,755 9,833,855 9,686,723 15,516,256
At June 30, 1996, gross unrealized appreciation and depreciation on
investments, were as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
-------- -------- -------- --------
Appreciation $ 330,562 $7,942,331 $3,706,275 $3,524,680
(Depreciation) (536,612) (463,156) (170,256) (288,714)
--------- --------- --------- ---------
Net (depreciation)
appreciation on
investments $(206,050) $7,479,175 $3,536,019 $3,235,966
========= ========= ========= =========
THE AQUINAS FUNDS, INC.
P.O. Box 419533
Kansas City, MO 64141-6533
Telephone: 1 (800) 423-6369
This report is submitted for the general information of shareholders of The
Aquinas Funds. It is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective prospectus for the Funds. The
prospectus gives details about charges, investment objectives, risks and
operating policies of the Funds. Read the prospectus carefully.
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