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AF
AQUINAS FUNDS
--------------------------
SEMI-ANNUAL REPORT
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THE AQUINAS FUNDS, INC.
1-800-423-6369
---------------------------
June 30, 1998
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AQUINAS FUNDS
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DEAR AUGUST 1998
SHAREHOLDER:
I want to discuss three major topics with you in this letter:
1) Catholic Values investing;
2) Fund performance for the six months ended 6/30/98; and
3) A new money market fund.
The Aquinas Funds are socially responsible mutual funds with a particular
interest in Catholic Values. We are judged by the family values we support as
well as our market performance. If a particular security seems out of place in
our portfolio, investors and prospective investors understandably want to know
why. The answer to this question is simple. Stock ownership provides us with a
powerful voice - a right to be heard and petition for change. Without stock
ownership most companies pay little, if any attention to you. On the other hand,
we can name many companies that are better off today because they listened to
their shareholders.
Like other mutual funds, when we believe a company has lost the financial
potential to meet our paramount investment criterion, we normally sell all of
our shares. Occasionally, we continue to hold only enough shares to allow us to
file a shareholder proposal to correct problems that are in conflict with our
Catholic Values. In order to have the best advantage (i.e., filing a
shareholder proposal) with a company, the Securities and Exchange Commission
(SEC) rules state that we need to own shares of the company for one year.
Because we do not want to be considered simply a pest or corporate gadfly, we
try to hold more than the minimum shares unless the financial reward does not
represent responsible money management. We used this strategy very effectively
with DISNEY on the issue of sweatshops and broadcast media standards. We also
use this strategy with a few other companies that we expect to repurchase in the
future.
Our primary Catholic Values investment policies are based on the guidelines of
the National Conference of Catholic Bishops. We do not debate the guidelines
with the Bishops and it is not our role to lobby the Bishops on behalf of
someone's personal agenda. In addition, we work on a number of social justice
issues, which are of interest to a wide range of socially conscious investors.
These issues include the environment, sweatshops, pornography and violence in
the media, among others.
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AQUINAS FUNDS
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Interestingly, as we become increasingly successful financially, our success in
promoting Catholic Values also grows stronger. The Aquinas Funds are listed on
pro-abortion Internet web sites as a major reason why the French abortion pill
(RU-486) has not been made available in the United States. As an investor, you
can be proud of what your investment has enabled us to do. (Speaking of web
sites, if you use the Internet, The Aquinas Funds can be found at
www.aquinasfunds.com.)
As you know by now, the securities markets had three wonderful years in 1995,
1996 and 1997. In the first half of 1998, the market has resembled a roller
coaster track. There is concern about the Asian crisis, the year 2000 problems
with computers and computer chips and the ability of corporations to maintain
record earnings. Our investment philosophy remains steadfast despite these
concerns. We are long-term investors who are not swayed by the latest media
frenzy to create headlines to get your attention. The U.S. economy is still
solid with low inflation, low unemployment, a budget surplus and strong
corporate cash flow.
Our best performer was Aquinas Equity Growth with a return of 16.5% for the
first six months of the year. Our Balanced Fund had a return of 6.5% for the
same time period. Aquinas Equity Income returned a respectable 5.0% for the
first six months and Fixed Income had a return of 3.6%. The general stock market
has been led by the S&P 500; however, a closer look at that index reveals that
the top 100 stocks of the S&P 500 have led the charge and the other 400 stocks
in that index have done very little. This means that the market is being
influenced by a relatively small percentage of companies. In our opinion, this
lack of diversification will limit the growth of the S&P 500 in the future.
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TOTAL RETURNS SIX ONE THREE YEAR AVERAGE ANNUAL
AS OF 6/30/97 MONTHS YEAR AVERAGE ANNUAL SINCE INCEPTION<F1>
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Aquinas Equity Growth 16.5% 32.7% 27.5% 19.7%
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Aquinas Balanced 6.5% 18.2% 17.1% 13.4%
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Aquinas Equity Income 5.0% 18.2% 22.3% 18.3%
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Aquinas Fixed Income 3.6% 9.4% 6.9% 6.1%
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<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.
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AQUINAS FUNDS
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Our portfolios are widely diversified and we do not take concentration risks. We
believe that this long-term view of investment alternatives will provide us with
consistent returns and reduce the volatility of downward movement as a sector of
the economy goes through a down cycle. Our range of Funds provides basic
investment styles and our multi-manager approach for each Fund allows us to
achieve our diversification objectives. We are proud that our Funds have
received favorable review by various organizations over the last four years. In
addition, we are pleased that we have been successful in providing a Catholic
voice and view to corporate directors, who may have left their social conscience
on the coat hook outside the boardroom door.
As stated in our April 1998 Prospectus, Aquinas has arranged to give you access
to a Money Market Fund that can be used in conjunction with your existing
Aquinas Funds account. You may set up an account through our Transfer Agent and
get immediate transfer and exchange privileges. Call 1-877-AQUINAS (toll-free)
and request a Money Market Fund Application and Prospectus.
Thank you for investing with us.
Sincerely,
/s/ Frank Rauscher
Frank Rauscher
President and CEO
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AQUINAS FUNDS
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STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FIXED INCOME EQUITY INCOME EQUITY GROWTH BALANCED
FUND FUND FUND FUND
----- ----- ----- -----
<C> <C> <C> <C>
ASSETS:
Investments at value (cost $37,874,927,
$54,045,054, $32,331,350 and
$25,801,436, respectively) $38,815,876 $66,455,961 $42,982,596 $29,575,802
Interest and dividends receivable 604,635 204,862 23,387 227,800
Cash _ 12,891 _ _
Receivable for securities sold _ 664,123 121,529 119,526
Prepaid expenses 11,583 16,615 13,190 4,692
Organizational expenses, net of
accumulated amortization 1,476 1,474 1,472 1,476
---------- ---------- ---------- ----------
Total Assets 39,433,570 67,355,926 43,142,174 29,929,296
---------- ---------- ---------- ----------
LIABILITIES:
Payable for securities purchased _ 587,526 91,648 103,690
Dividend payable 185,652 270,315 _ 179,753
Accrued expenses 20,762 30,248 52,372 111,985
Accrued investment advisory fee 18,801 54,960 33,795 24,368
---------- ---------- ---------- ----------
Total Liabilities 225,215 943,049 177,815 419,796
---------- ---------- ---------- ----------
NET ASSETS $39,208,355 $66,412,877 $42,964,359 $29,509,500
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Capital stock $ 382 $ 428 $ 244 $ 242
Paid-in capital in excess of par 37,840,984 45,684,204 30,077,870 23,614,411
Undistributed net investment income 5,046 _ _ _
Undistributed net realized gain
on investments 420,994 8,317,338 2,234,999 2,120,481
Net unrealized appreciation
on investments 940,949 12,410,907 10,651,246 3,774,366
---------- ---------- ---------- ----------
NET ASSETS $39,208,355 $66,412,877 $42,964,359 $29,509,500
=========== =========== =========== ===========
CAPITAL STOCK, $.0001 PAR VALUE:
Authorized 125,000,000 125,000,000 125,000,000 125,000,000
Issued and outstanding 3,823,156 4,281,199 2,437,760 2,421,240
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $10.26 $15.51 $17.62 $12.19
====== ====== ====== ======
See notes to financial statements.
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AQUINAS FUNDS
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STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FIXED INCOME EQUITY INCOME EQUITY GROWTH BALANCED
FUND FUND FUND FUND
----- ----- ----- -----
<C> <C> <C> <C>
INVESTMENT INCOME:
Interest $1,196,154 $ 61,808 $ 48,594 $ 394,385
Dividends _ 954,653 85,723 171,553
Other income 3,800 _ _ 500
---------- ----------- ---------- ----------
1,199,954 1,016,461 134,317 566,438
EXPENSES:
Investment advisory fees 111,643 346,520 192,121 146,995
Administration and fund accounting fees 30,778 57,327 31,776 24,317
Shareholder servicing fees 15,148 17,539 14,694 14,221
Federal and state registration fees 8,376 11,233 8,423 3,695
Pricing fees 5,297 1,570 2,282 7,688
Legal fees 3,388 5,578 2,697 2,557
Other 3,751 6,055 3,294 2,914
Audit fees 3,382 6,294 3,402 2,764
Reports to shareholders 1,492 2,829 1,596 1,241
Custody fees 2,825 3,071 4,555 5,951
Amortization of organization expenses 1,451 1,453 1,455 1,451
Insurance 283 446 199 213
---------- ----------- ---------- ----------
Total expenses before waiver 187,814 459,915 266,494 214,007
Waiver of fees (1,930) _ _ (7,345)
---------- ----------- ---------- ----------
Net Expenses 185,884 459,915 266,494 206,662
---------- ----------- ---------- ----------
NET INVESTMENT INCOME (LOSS) 1,014,070 556,546 (132,177) 359,776
---------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 546,051 8,267,297 2,342,117 2,090,100
Change in unrealized appreciation/
depreciation on investments (188,251) (5,162,524) 3,687,271 (612,373)
---------- ----------- ---------- ----------
Net Gain on Investments 357,800 3,104,773 6,029,388 1,477,727
---------- ----------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $1,371,870 $3,661,319 $5,897,211 $1,837,503
========== ========== ========== ==========
See notes to financial statements.
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AQUINAS FUNDS
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STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FIXED INCOME EQUITY INCOME
FUND FUND
----- -----
Six Months Six Months
ended Year ended Year
June 30, 1998 ended June 30, 1998 ended
(Unaudited) Dec. 31, 1997 (Unaudited) Dec. 31, 1997
-------------- -------------- -------------- --------------
<C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 1,014,070 $ 2,144,650 $ 556,546 $ 1,101,627
Net realized gain on investments 546,051 312,887 8,267,297 7,883,317
Change in unrealized appreciation/
depreciation on investments (188,251) 751,968 (5,162,524) 6,152,105
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations 1,371,870 3,209,505 3,661,319 15,137,049
------------ ------------ ------------ ------------
DISTRIBUTIONS OF:
Net investment income (1,004,064) (2,134,527) (559,452) (1,102,951)
Net realized gains _ _ _ (7,778,616)
------------ ------------ ------------ ------------
Total Distributions (1,004,064) (2,134,527) (559,452) (8,881,567)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 5,427,435 12,103,388 4,776,467 18,210,707
Shares issued to holders in
reinvestment of distributions 754,039 1,989,387 272,023 8,413,974
Shares redeemed (8,040,332) (11,697,340) (15,331,254) (13,470,678)
------------ ------------ ------------ ------------
Net Increase (Decrease) (1,858,858) 2,395,435 (10,282,764) 13,154,003
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS (1,491,052) 3,470,413 (7,180,897) 19,409,485
NET ASSETS:
Beginning of period 40,699,407 37,228,994 73,593,774 54,184,289
------------ ------------ ------------ ------------
End of period $39,208,355 $40,699,407 $66,412,877 $73,593,774
============ ============ ============ ============
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AQUINAS FUNDS
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EQUITY GROWTH BALANCED
FUND FUND
----- -----
Six Months Six Months
ended Year ended Year
June 30, 1998 ended June 30, 1998 ended
(Unaudited) Dec. 31, 1997 (Unaudited) Dec. 31, 1997
-------------- -------------- -------------- --------------
<C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (132,177) $ (192,777) $ 359,776 $ 704,614
Net realized gain on investments 2,342,117 4,823,830 2,090,100 4,158,125
Change in unrealized appreciation/
depreciation on investments 3,687,271 2,770,587 (612,373) 341,855
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting
from Operations 5,897,211 7,401,640 1,837,503 5,204,594
------------ ------------ ------------ ------------
DISTRIBUTIONS OF:
Net investment income _ _ (358,604) (702,886)
Net realized gains _ (4,594,461) _ (4,125,005)
------------ ------------ ------------ ------------
Total Distributions _ (4,594,461) (358,604) (4,827,891)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 6,526,415 10,876,722 1,117,510 5,618,053
Shares issued to holders in
reinvestment of distributions _ 4,482,036 174,922 4,470,988
Shares redeemed (5,449,067) (4,769,299) (2,426,264) (10,971,318)
------------ ------------ ------------ ------------
Net Increase (Decrease) 1,077,348 10,589,459 (1,133,832) (882,277)
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS 6,974,559 13,396,638 345,067 (505,574)
NET ASSETS:
Beginning of period 35,989,800 22,593,162 29,164,433 29,670,007
------------ ------------ ------------ ------------
End of period $42,964,359 $35,989,800 $29,509,500 $29,164,433
============ ============ ============ ============
See notes to financial statements.
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AQUINAS FUNDS
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FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FIXED INCOME
FUND
-----
Six Months
ended Year Year Year Jan. 3, 1994 <F1>
June 30, 1998 ended ended ended through
(Unaudited) Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1994
------------ ------------ ------------ ------------ ------------
<C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.17 $9.90 $10.17 $9.24 $10.00
Income from Investment Operations:
Net investment income 0.28 0.55 0.54 0.54 0.46
Net realized and unrealized
gains (losses) on investments 0.08 0.27 (0.27) 0.93 (0.77)
-------- -------- -------- -------- --------
Total from Investment Operations 0.36 0.82 0.27 1.47 (0.31)
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income (0.27) (0.55) (0.54) (0.54) (0.45)
Distributions from net realized gains _ _ _ _ _
-------- -------- -------- -------- --------
Total Distributions (0.27) (0.55) (0.54) (0.54) (0.45)
-------- -------- -------- -------- --------
Net Asset Value, End of Period $10.26 $10.17 $9.90 $10.17 $9.24
======= ======== ======== ======== ========
Total Return<F2> 3.61% 8.54% 2.83% 16.26% (3.09)%
Supplemental Data and Ratios:
Net assets, end of period
(in thousands) $39,208 $40,699 $37,229 $35,617 $28,147
Ratio to Average Net Assets of:<F3>
Expenses, net of waivers and reimbursements 1.00% 0.99% 1.00% 0.98% 1.00%
Expenses, before waivers and reimbursements 1.01% 1.05% 1.03% 0.98% 1.11%
Net investment income, net of waivers and
reimbursements 5.45% 5.54% 5.44% 5.46% 4.84%
Net investment income, before waivers and
reimbursements 5.44% 5.48% 5.41% 5.46% 4.73%
Portfolio turnover rate <F2> 62% 102% 169% 126% 139%
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AQUINAS FUNDS
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EQUITY INCOME
FUND
-----
Six Months
ended Year Year Year Jan. 3, 1994 <F1>
June 30, 1998 ended ended ended through
(Unaudited) Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1994
------------ ------------ ------------ ------------ ------------
<C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.89 $13.26 $11.83 $9.39 $10.00
Income from Investment Operations:
Net investment income 0.13 0.26 0.23 0.28 0.32
Net realized and unrealized
gains (losses) on investments 0.62 3.40 2.18 3.03 (0.61)
-------- -------- -------- -------- --------
Total from Investment Operations 0.75 3.66 2.41 3.31 (0.29)
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income (0.13) (0.26) (0.23) (0.28) (0.32)
Distributions from net realized gains _ (1.77) (0.75) (0.59) _
-------- -------- -------- -------- --------
Total Distributions (0.13) (2.03) (0.98) (0.87) (0.32)
-------- -------- -------- -------- --------
Net Asset Value, End of Period $15.51 $14.89 $13.26 $11.83 $9.39
======= ======== ======== ======== ========
Total Return<F2> 5.01% 27.85% 20.43% 35.62% (2.93)%
Supplemental Data and Ratios:
Net assets, end of period
(in thousands) $66,413 $73,594 $54,184 $42,102 $32,217
Ratio to Average Net Assets of:<F3>
Expenses, net of waivers and reimbursements 1.33% 1.37% 1.40% 1.37% 1.45%
Expenses, before waivers and reimbursements 1.33% 1.37% 1.40% 1.37% 1.45%
Net investment income, net of waivers
and reimbursements 1.61% 1.74% 1.79% 2.47% 3.33%
Net investment income, before waivers
and reimbursements 1.61% 1.74% 1.79% 2.47% 3.33%
Portfolio turnover rate <F2> 30% 42% 32% 40% 106%
<F1> Commencement of operations.
<F2> Not annualized for the periods from January 3, 1994 through December 31, 1994 and January 1, 1998 through June 30, 1998.
<F3> Annualized for the periods from January 3, 1994 through December 31, 1994 and January 1, 1998 through June 30, 1998.
See notes to financial statements.
</TABLE>
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AQUINAS FUNDS
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FINANCIAL HIGHLIGHTS (CONT'D.)
<TABLE>
<CAPTION>
EQUITY INCOME
FUND
-----
Six Months
ended Year Year Year Jan. 3, 1994 <F1>
June 30, 1998 ended ended ended through
(Unaudited) Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1994
------------ ------------ ------------ ------------ ------------
<C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $15.12 $13.45 $12.13 $9.31 $10.00
Income from Investment Operations:
Net investment income (0.05) 0.06 (0.06) (0.01) 0.01
Net realized and unrealized
gains (losses) on investments 2.55 3.81 2.84 2.83 (0.69)
-------- -------- -------- -------- --------
Total from Investment Operations 2.50 3.87 2.78 2.82 (0.68)
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income _ _ _ _ (0.01)
Distributions from net realized gains _ (2.20) (1.46) _ _
-------- -------- -------- -------- --------
Total Distributions _ (2.20) (1.46) _ (0.01)
-------- -------- -------- -------- --------
Net Asset Value, End of Period $17.62 $15.12 $13.45 $12.13 $9.31
======= ======== ======== ======== ========
Total Return<F2> 16.53% 28.97% 22.90% 30.29% (6.78)%
Supplemental Data and Ratios:
Net assets, end of period
(in thousands) $42,964 $35,990 $22,593 $15,912 $10,104
Ratio to Average Net Assets of:<F3>
Expenses, net of waivers and reimbursements 1.39% 1.49% 1.50% 1.50% 1.50%
Expenses, before waivers and reimbursements 1.39% 1.49% 1.54% 1.61% 1.76%
Net investment income, net of waivers
and reimbursements (0.69)% (0.66)% (0.55)% (0.10)% 0.14%
Net investment income, before waivers
and reimbursements (0.69)% (0.66)% (0.59)% (0.21)% (0.12)%
Portfolio turnover rate <F2> 41% 104% 112% 102% 98%
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AQUINAS FUNDS
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BALANCED
FUND
-----
Six Months
ended Year Year Year Jan. 3, 1994 <F1>
June 30, 1998 ended ended ended through
(Unaudited) Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1994
------------ ------------ ------------ ------------ ------------
<C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.58 $11.53 $11.03 $9.43 $10.00
Income from Investment Operations:
Net investment income 0.15 0.31 0.26 0.32 0.26
Net realized and unrealized
gains (losses) on investments 0.61 1.95 1.41 1.84 (0.57)
-------- -------- -------- -------- --------
Total from Investment Operations 0.76 2.26 1.67 2.16 (0.31)
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income (0.15) (0.30) (0.26) (0.33) (0.26)
Distributions from net realized gains _ (1.91) (0.91) (0.23) _
-------- -------- -------- -------- --------
Total Distributions (0.15) (2.21) (1.17) (0.56) (0.26)
-------- -------- -------- -------- --------
Net Asset Value, End of Period $12.19 $11.58 $11.53 $11.03 $9.43
======= ======== ======== ======== ========
Total Return<F2> 6.54% 19.91% 15.29% 23.14% (3.06)%
Supplemental Data and Ratios:
Net assets, end of period
(in thousands) $29,510 $29,164 $29,670 $26,779 $30,114
Ratio to Average Net Assets of:<F3>
Expenses, net of waivers and reimbursements 1.41% 1.45% 1.44% 1.46% 1.49%
Expenses, before waivers and reimbursements 1.46% 1.52% 1.49% 1.46% 1.49%
Net investment income, net of waivers and
reimbursements 2.45% 2.44% 2.23% 2.93% 2.75%
Net investment income, before waivers and
reimbursements 2.40% 2.37% 2.18% 2.93% 2.75%
Portfolio turnover rate <F2> 50% 94% 111% 118% 111%
(1) Commencement of operations.
(2) Not annualized for the periods from January 3, 1994 through December 31, 1994 and January 1, 1998 through June 30, 1998.
(3) Annualized for the periods from January 3, 1994 through December 31, 1994 and January 1, 1998 through June 30, 1998.
See notes to financial statements.
</TABLE>
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AQUINAS FUNDS
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FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Principal
Amount Value
- --------- ------
FIXED INCOME BONDS 92.6%
ASSET-BACKED SECURITIES 13.4%
$850,000 Amresco Residential Securities
Mortgage Loan Trust,
8.075%, 4/25/26 $ 929,296
300,000 Amresco Residential Securities
Mortgage Loan Trust,
7.615%, 3/25/27 308,187
275,000 Amresco Residential Securities
Mortgage Loan Trust,
7.05%, 4/25/27 284,427
300,000 California Infrastructure SCA 97-1A5,
6.28%, 9/25/05 302,640
375,000 Chase Manhattan Auto Owner Trust,
6.25%, 11/15/00 376,942
525,000 First USA Credit Card Master Trust,
5.798%, 2/17/05 524,890
160,762 Ford Credit Auto Trust,
6.50%, 11/15/99 161,122
310,787 IMC Home Equity Loan Trust 1997-4 A,
6.1837%, 10/20/27 311,191
375,000 MBNA Master Credit Card Trust,
6.60%, 11/15/04 386,685
400,000 Olympic Auto Trust,
6.625%, 12/15/02 407,192
375,000 Providian Master Trust, 97-4A,
6.25%, 6/15/07 377,944
500,000 Saxon Asset Securities Trust 97-3 AF6,
6.73%, 2/25/27 506,035
375,000 UCFC Home Equity Loan Trust,
7.825%, 12/15/27 400,305
----------
5,276,856
----------
CORPORATE BONDS 51.6%
467,000 American Express Credit Corp.,
8.50%, 6/15/99 477,932
Principal
Amount Value
- --------- ------
CORPORATE BONDS 51.6% (CONT'D.)
$525,000 Associates Corp. of North America,
7.75%, 2/15/05 $567,210
500,000 BarclaysAmerican Corp.,
7.875%, 8/15/98 500,985
400,000 Bear Stearns Corp.,
6.75%, 12/15/07 408,500
655,000 Bellsouth Capital Funding,
6.04%, 11/15/26 664,052
600,000 Citicorp,
8.00%, 2/1/03 642,588
375,000 Coca-Cola Enterprises, Inc.,
7.00%, 10/1/26 401,651
600,000 Commercial Credit Co.,
7.875%, 2/1/25 711,672
420,000 Compania Telecom Chile,
7.625%, 7/15/06 432,768
400,000 Corporation Andina de Fomento,
7.10%, 2/1/03 406,720
350,000 El Paso Natural Gas Co.,
6.75%, 11/15/03 358,389
350,000 First Maryland Bancorp,
7.20%, 7/1/07 370,482
800,000 Ford Motor Credit,
8.375%, 1/15/00 828,448
629,000 General Electric Capital Corp.,
8.30%, 9/20/09 733,452
600,000 General Motors Acceptance Corp.,
8.875%, 6/1/10 721,962
400,000 Global Marine, Inc.,
7.125%, 9/1/07 415,724
550,000 Grand Metropolitan Investment PLC,
7.45%, 4/15/35 613,145
650,000 Heller Financial Corp.,
6.25%, 3/1/01 649,304
850,000 Household Finance Corp.,
7.125%, 4/30/99 857,539
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AQUINAS FUNDS
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FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Principal
Amount Value
- --------- ------
CORPORATE BONDS 51.6% (CONT'D.)
$190,000 Lasmo, Inc.,
7.30%, 11/15/27 callable $ 200,007
850,000 Lehman Brothers, Inc.,
8.80%, 3/1/15 1,012,784
400,000 Lockheed Martin Corp.,
6.85%, 5/15/01 408,032
830,000 Motorola, Inc.,
6.50%, 9/1/25 861,001
350,000 Nabisco, Inc.,
7.55%, 6/15/15 364,840
300,000 NationsBank Corp.,
8.57%, 11/15/24 375,699
590,000 New Jersey Bell Telephone Co.,
7.85%, 11/15/29 704,501
500,000 Norwest Financial, Inc.,
6.00%, 8/1/99 500,330
500,000 Pacific Gas & Electric Co.,
7.67%, 12/15/98 503,490
380,000 Penney (J.C.) & Co.,
7.40%, 4/1/37 417,210
385,000 Rodamco NV,
7.30%, 5/15/05 412,470
400,000 Rollins Truck Leasing Corp.,
7.00%, 3/15/01 408,760
400,000 Saloman, Inc.,
7.30%, 5/15/02 415,680
650,000 Southern California Edison Co.,
5.60%, 12/15/98 649,331
420,000 Tenneco, Inc.,
8.075%, 10/1/02 447,187
880,000 WMX Technologies, Inc.,
6.65%, 5/15/05 881,725
900,000 Xerox Corp.,
5.875%, 6/15/37 906,390
----------
20,231,960
----------
Principal
Amount Value
- --------- ------
U.S. GOVERNMENT AGENCIES 8.6%
$ 400,000 Federal Farm Credit,
6.35%, 10/22/01 $ 400,372
589,133 FHLMC, Pool 555316,
9.00%, 6/1/19 626,325
195,617 FNCL, Pool 50940,
6.00%, 11/1/23 190,421
475,000 FNMA, 4.875%, 10/15/98 474,093
400,000 FNMA, 6.08%, 9/3/03 399,432
350,000 FNR 1998-17,
6.50%, 1/18/26 348,327
300,000 Guaranteed Export Certificates,
6.28%, 6/15/04 303,414
600,000 Tennessee Valley Authority,
6.235%, 7/15/45 620,568
----------
3,362,952
----------
U.S. TREASURY OBLIGATIONS 19.0%
930,000 U.S. Treasury Bond,
8.00%, 11/15/21 1,197,924
400,000 U.S. Treasury Note,
5.625%, 11/30/98 400,532
400,000 U.S. Treasury Note,
6.25%, 8/31/00 405,764
40,000 U.S. Treasury Note,
6.50%, 5/31/02 41,304
1,310,000 U.S. Treasury Note,
6.25%, 6/30/02 1,341,990
930,000 U.S. Treasury Note,
7.50%, 2/15/05 1,028,692
2,260,000 U.S. Treasury Note,
7.00%, 7/15/06 2,467,197
270,000 U.S. Treasury Strips,
2/15/20 78,592
1,860,000 U.S. Treasury Strips,
11/15/21 491,058
----------
7,453,053
----------
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Principal
Amount Value
- --------- ------
Total Fixed Income Bonds
(cost $35,383,872) $36,324,821
----------
SHORT-TERM INVESTMENTS 6.4%
$2,000,000 Associates Corp. Commercial Paper,
5.85%, 7/1/98 2,000,000
491,055 UMB Bank, n.a., Money Market
Fiduciary, Demand Deposit, 4.0% 491,055
----------
Total Short-term Investments
(cost $2,491,055) 2,491,055
----------
Total Investments 99.0%
(cost $37,874,927) 38,815,876
Other assets
less liabilities 1.0% 392,479
----------
NET ASSETS 100.0% $39,208,355
==========
See notes to financial statements.
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
COMMON STOCKS 96.8%
AEROSPACE 0.9%
13,200 The Boeing Company $ 588,225
----------
APPAREL 2.4%
13,300 VF Corp. 684,119
20,600 The Warnaco Group, Inc. 874,213
----------
1,558,332
----------
AUTOMOTIVE RELATED
INDUSTRIES 3.8%
13,200 Chrysler Corp. 744,150
18,700 Dana Corp. 1,000,450
13,200 Ford Motor Co. 778,800
----------
2,523,400
----------
BANKING 4.5%
5,800 Bankers Trust New York Corp. 673,163
9,500 Chase Manhattan Corp. 717,250
23,700 PNC Bank Corp. 1,275,356
5,000 Union Planters Corp. 294,063
----------
2,959,832
----------
BREWERIES 1.1%
15,200 Anheuser-Busch Cos., Inc. 717,250
----------
BUILDING MATERIALS 0.8%
8,300 Armstrong World Industries, Inc. 559,212
----------
BUSINESS SERVICES 1.7%
33,700 First Data Corp. 1,122,631
----------
Chemicals 5.3%
13,600 B.F. Goodrich Co. 674,900
6,800 Dow Chemical Co. 657,475
7,000 The Lubrizol Corp. 211,750
Number
of Shares Value
- --------- -------
CHEMICALS 5.3% (CONT'D.)
21,700 Mallinckrodt, Inc. $ 644,219
14,400 Union Carbide Corp. 768,600
18,900 Westvaco Corp. 533,925
----------
3,490,869
----------
COMPUTER EQUIPMENT 2.8%
16,100 International Business
Machines Corp. 1,848,481
----------
COMPUTER SERVICES 2.1%
34,500 Electronic Data Systems Corp. 1,380,000
----------
CONSTRUCTION 1.9%
24,600 Fluor Corp. 1,254,600
----------
CONSUMER PRODUCTS 1.1%
14,900 American Greetings Corp., Class A 758,969
----------
CONSUMER SERVICES 1.4%
39,916 Jostens, Inc. 962,974
----------
DRUGS 2.1%
13,000 American Home Products Corp. 672,750
16,300 Pharmacia & Upjohn, Inc. 751,837
----------
1,424,587
----------
ELECTRIC UTILITIES 5.5%
16,400 DTE Energy Co. 662,150
27,610 Duke Energy Corp. 1,635,893
30,600 PP&L Resources, Inc. 694,237
30,400 Washington Water Power Co. 682,100
----------
3,674,380
----------
ELECTRONICS 3.7%
32,400 AMP, Inc. 1,113,750
8,300 General Electric Co. 755,300
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
ELECTRONICS 3.7% (CONT'D.)
16,600 General Signal Corp. $ 597,600
----------
2,466,650
----------
FINANCIAL SERVICES 3.2%
30,200 Capstead Mortgage Corp. 252,925
12,000 Marsh & McLennan Cos., Inc. 725,250
23,500 SLM Holding Corp. 1,151,500
----------
2,129,675
----------
FOOD 3.2%
30,500 Supervalu, Inc. 1,353,437
29,100 Sysco Corp. 745,688
----------
2,099,125
----------
FUNERAL SERVICES 1.4%
22,000 Service Corp. International 943,250
----------
HOLDING COMPANIES 2.7%
19,100 Public Service Enterprise Group, Inc. 657,756
48,400 RJR Nabisco Holdings Corp. 1,149,500
----------
1,807,256
----------
HOSPITAL MANAGEMENT AND
SERVICES 0.6%
13,500 Columbia/HCA Healthcare Corp. 393,187
----------
INSURANCE 5.3%
9,300 CIGNA Corp. 641,700
3,450 General Re Corp. 874,575
17,800 MBIA, Inc. 1,332,775
14,900 Ohio Casualty Corp. 659,325
----------
3,508,375
----------
LEISURE 2.0%
53,900 Brunswick Corp. 1,334,025
----------
Number
of Shares Value
- ---------- ------
MANUFACTURING 1.5%
19,600 Cummins Engine Co., Inc. $1,004,500
----------
MINING 1.7%
20,000 Newmont Mining Corp. 472,500
10,900 Phelps Dodge Corp. 623,344
----------
1,095,844
----------
NATURAL GAS UTILITIES 3.9%
31,200 El Paso Natural Gas Co. 1,193,400
17,100 NICOR, Inc. 686,138
18,400 Peoples Energy Corp. 710,700
----------
2,590,238
----------
OFFICE EQUIPMENT 0.9%
14,000 Harris Corp. 625,625
----------
OIL AND GAS 13.9%
16,400 Amoco Corp. 682,650
10,400 Atlantic Richfield Co. 812,500
20,892 Burlington Resources, Inc. 899,662
9,000 Chevron Corp. 747,563
22,500 EVI Weatherford, Inc.* 835,313
8,200 Kerr-McGee Corp. 474,575
24,500 Occidental Petroleum Corp. 661,500
44,800 R&B Falcon Corp.* 1,013,600
12,500 Repsol SA-ADR 687,500
18,900 Texaco, Inc. 1,128,094
19,700 Ultramar Diamond Shamrock Corp. 621,781
20,300 Williams Cos., Inc. 685,125
----------
9,249,863
----------
PRINTING AND PUBLISHING 2.2%
41,400 Deluxe Corp. 1,482,635
----------
RETAIL 0.9%
8,500 Penney (J.C.) Co., Inc. 614,656
----------
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
SEMICONDUCTORS 1.6%
14,500 Intel Corp. $ 1,074,813
----------
STEEL/IRON 1.8%
13,600 Nucor Corp. 625,600
17,400 USX-US Steel Group, Inc. 574,200
----------
1,199,800
----------
TELECOMMUNICATIONS 5.7%
14,600 Bell Atlantic Corp. 666,125
18,200 GTE Corp. 1,012,375
20,000 SBC Communications, Inc. 800,000
10,400 Southern New England
Telecommunications Corp. 681,200
13,000 US West Communications Group 611,000
----------
3,770,700
----------
TEXTILES 0.9%
12,400 Springs Industries, Inc., Class A 571,950
----------
TOBACCO PRODUCTS 1.1%
18,800 Philip Morris Cos., Inc. 740,250
----------
TRANSPORTATION 1.2%
18,000 GATX Corp. 789,750
----------
Total Common Stocks
(cost $51,871,452) 64,315,909
----------
Principal
Amount Value
- ---------- -------
CONVERTIBLE BONDS 0.9%
$ 610,000 QUANTUM CORP.,
7.00%, 8/1/04
(COST $610,000) $ 576,450
SHORT-TERM INVESTMENTS 2.4%
1,563,602 UMB Bank, n.a., Money Market
Fiduciary, Demand Deposit, 4.0%
(cost $1,563,602) 1,563,602
----------
Total Investments 100.1%
(cost $54,045,054) 66,455,961
Liabilities, less other
assets (0.1%) (43,084)
----------
NET ASSETS 100.0% $66,412,877
==========
*Non-income producing security
See notes to financial statements.
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
COMMON STOCKS 94.6%
ADVERTISING 0.7%
5,900 Omnicom Group, Inc. $ 294,263
----------
AUTOMOTIVE AND RELATED
INDUSTRIES 1.6%
12,800 CSK Auto Corp.* 323,200
5,100 Federal-Mogul Corp. 344,250
----------
667,450
----------
BANKING 5.0%
3,800 BankAmerica Corp. 328,462
17,900 Charter One Financial, Inc. 603,006
4,000 Chase Manhattan Corp. 302,000
7,000 Star Banc Corp. 447,125
9,600 U.S. Bancorp 412,800
2,146 Washington Federal, Inc. 59,283
----------
2,152,676
----------
BUSINESS SERVICES 9.5%
18,100 Accustaff, Inc.* 565,625
4,400 Administaff, Inc.* 202,950
6,400 Cognizant Corp.* 403,200
17,200 Fiserv, Inc.* 730,462
12,400 Maximus, Inc.* 361,925
4,300 NOVA Corp.* 153,725
30,180 Outdoor Systems, Inc.* 845,040
8,475 Paychex, Inc. 344,827
7,400 PMT Services, Inc.* 188,238
5,700 Quintiles Transnational Corp.* 280,369
----------
4,076,361
----------
COMMUNICATIONS 3.3%
5,400 Cisco Systems, Inc.* 497,137
13,100 Harmonic Lightwaves, Inc.* 201,412
17,600 Scientific-Atlanta, Inc. 446,600
3,800 Tellabs, Inc.* 272,175
----------
1,417,324
----------
Number
of Shares Value
- ---------- -------
COMPUTER SERVICES 2.4%
6,050 Computer Horizons Corp.* $ 224,228
7,400 Data Processing Resources Corp.* 229,862
15,300 Sungard Data Systems, Inc.* 587,138
----------
1,041,228
----------
COMPUTER SOFTWARE 7.6%
5,400 BMC Software, Inc.* 280,462
7,000 Cadence Design Systems 218,750
10,000 CBT Group PLC-ADR* 535,000
7,800 Computer Associates
International, Inc. 433,387
12,200 HBO & Company 430,050
6,700 Microsoft Corp.* 726,113
7,800 Transaction Systems Architects, Inc.* 300,300
7,100 Visio Corp.* 339,025
----------
3,263,087
----------
CONSUMER PRODUCTS 1.0%
13,600 Westpoint Stevens, Inc.* 448,800
----------
CONSUMER SERVICES 1.0%
11,800 Pittston Brink's Group 435,125
----------
DRUGS 2.6%
5,500 Jones Pharma, Inc. 182,188
1,800 Merck & Co., Inc. 240,750
3,000 Pfizer, Inc. 326,063
4,000 Schering-Plough Corp. 366,500
----------
1,115,501
----------
ELECTRONICS 1.6%
6,400 General Electric Co. 582,400
1,900 Hewlett-Packard Co. 113,762
----------
696,162
----------
ENTERTAINMENT 0.7%
4,100 SFX Entertainment, Inc.* 188,088
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
ENTERTAINMENT 0.7% (CONT'D.)
1,000 Walt Disney Co. $ 105,062
----------
293,150
----------
FINANCIAL SERVICES 5.4%
7,200 Capital One Financial Corp. 894,150
9,400 Finova Group, Inc. 532,275
2,500 Merrill Lynch & Co., Inc. 230,625
4,750 SunAmerica, Inc. 272,828
6,150 Travelers Group, Inc. 372,844
----------
2,302,722
----------
FOOD 2.1%
5,200 Bestfoods 301,925
2,500 Coca-Cola Company 213,750
9,400 Safeway, Inc.* 382,463
----------
898,138
----------
FUNERAL SERVICES 0.8%
13,400 Equity Corp. International* 321,600
----------
HEALTH CARE EQUIPMENT AND
SUPPLIES 2.3%
9,400 Abbott Laboratories 384,225
4,500 Biomet, Inc. 148,781
1,900 Guidant Corp. 135,494
8,700 Omnicare, Inc. 331,688
----------
1,000,188
----------
HOME FURNISHINGS 1.1%
9,300 Furniture Brands International, Inc.* 260,981
9,000 Miller (Herman), Inc. 218,813
----------
479,794
----------
HOSPITAL MANAGEMENT AND
SERVICES 1.9%
9,328 Concentra Managed Care, Inc.* 242,528
10,300 Healthsouth Corp.* 274,881
4,700 Health Management Associates* 157,156
Number
of Shares Value
- ---------- -------
HOSPITAL MANAGEMENT AND
SERVICES 1.9% (CONT'D.)
4,600 Tenet Healthcare Corp.* $ 143,750
----------
818,315
----------
HOTELS 0.6%
15,200 Host Marriott Corp.* 270,750
----------
HOUSEHOLD PRODUCTS 1.5%
4,000 Clorox Co. 381,500
3,000 Procter & Gamble Co. 273,188
----------
654,688
----------
INDUSTRIAL 0.5%
4,600 Allied-Signal, Inc. 204,125
----------
INFORMATION SYSTEMS 1.4%
16,000 Affiliated Computer Services, Inc.* 616,000
----------
INSURANCE 4.1%
2,800 Allstate Corporation 256,375
3,200 American International Group, Inc. 467,200
2,700 MGIC Investment Corp. 154,069
6,900 Reliastar Financial Corp. 331,200
4,000 The Equitable Companies, Inc. 299,750
4,300 UNUM Corp. 238,650
----------
1,747,244
----------
MANUFACTURING 5.2%
13,400 Danaher Corp. 491,612
10,200 Gentex Corp.* 184,875
4,800 Johnson Controls, Inc. 273,900
4,900 Owens-Illinois, Inc.* 219,275
12,200 Sybron International Corp.* 308,050
8,000 Tyco International Ltd. 504,000
4,000 Waters Corp.* 235,750
----------
2,217,462
----------
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
MEDIA 1.9%
6,400 A.H. Belo Corp. $ 156,000
10,600 Capstar Broadcasting Corp.* 266,325
2,200 Chancellor Media Corp.* 109,244
2,800 Clear Channel
Communications, Inc.* 305,550
----------
837,119
----------
NATURAL GAS UTILITIES 0.8%
6,000 Columbia Energy Group 333,750
----------
OFFICE EQUIPMENT 1.3%
10,300 Boise Cascade Office Products Corp.* 159,650
6,100 United Stationers, Inc.* 394,975
----------
554,625
----------
OIL AND GAS 6.2%
4,500 Barrett Resources Corp.* 168,469
8,000 Cooper Cameron Corp.* 408,000
22,400 Cross Timbers Oil Co. 427,000
23,200 Global Industries, Ltd.* 391,500
6,400 Halliburton Co. 285,200
6,200 McDermott International, Inc. 213,513
6,300 Sante Fe International Corp. 190,575
2,800 Schlumberger Ltd. 191,275
11,400 Williams Cos., Inc. 384,750
----------
2,660,282
----------
REAL ESTATE 0.4%
6,100 FelCor Suite Hotels, Inc. 191,388
----------
RESTAURANTS 2.4%
17,900 Brinker International, Inc.* 344,575
12,800 Starbucks Corp.* 684,000
----------
1,028,575
----------
RETAIL 12.9%
9,500 Abercrombie & Fitch Co.* 418,000
5,900 Bed Bath and Beyond, Inc.* 305,694
RETAIL 12.9% (CONT'D.)
6,300 BJ's Wholesale Club, Inc.* $ 255,937
18,100 Borders Group, Inc.* 669,700
2,950 Cardinal Health, Inc. 276,562
8,600 Costco Cos., Inc.* 542,337
12,600 Fingerhut Cos., Inc. 415,800
7,800 Fred Meyer, Inc.* 331,500
8,800 General Nutrition Cos., Inc.* 273,900
4,650 Home Depot, Inc. 386,241
4,800 Mattel, Inc. 203,100
9,900 Michaels Stores, Inc.* 349,284
3,300 Nordstrom, Inc. 254,925
11,400 Office Depot, Inc.* 359,813
9,500 Staples, Inc.* 274,906
3,900 Whole Foods Market, Inc.* 235,950
----------
5,553,649
----------
SEMICONDUCTORS 0.3%
1,900 Intel Corp. 140,837
----------
TELECOMMUNICATIONS 3.7%
6,600 Airtouch Communications, Inc.* 385,687
7,100 AT&T Corp. 405,588
3,900 Lucent Technologies, Inc. 324,431
10,100 WorldCom, Inc.* 489,219
----------
1,604,925
----------
WASTE DISPOSAL 0.8%
6,915 Waste Management, Inc.* 341,428
----------
Total Common Stock
(cost $30,027,485) 40,678,731
----------
Principal
Amount Value
- --------- -------
SHORT-TERM INVESTMENTS 5.4%
$2,303,865 UMB Bank, n.a., Money Market
Fiduciary, Demand Deposit, 4.0%
(cost $2,303,865) $ 2,303,865
----------
Total Investments 100.0%
(cost $32,331,350) 42,982,596
Liabilities, less
other assets (0.0%) (18,237)
----------
NET ASSETS 100.0% $42,964,359
==========
*Non-income producing security
See notes to financial statements.
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
COMMON STOCKS 57.4%
AEROSPACE 0.4%
2,300 The Boeing Company $102,494
----------
APPAREL 0.9%
2,200 VF Corp. 113,163
3,500 The Warnaco Group, Inc. 148,531
----------
261,694
----------
AUTOMOTIVE RELATED
INDUSTRIES 2.2%
4,100 CSK Auto Corp.* 103,525
2,200 Chrysler Corp. 124,025
3,300 Dana Corp. 176,550
1,700 Federal-Mogul Corp. 114,750
2,300 Ford Motor Co. 135,700
----------
654,550
----------
BANKING 2.8%
1,000 Bankers Trust New York Corp. 116,062
5,200 Charter One Financial, Inc. 175,175
1,700 Chase Manhattan Corp. 128,350
4,100 PNC Bank Corp. 220,631
2,100 Star Banc Corp. 134,138
900 Union Planters Corp. 52,931
----------
827,287
----------
BREWERIES 0.4%
2,500 Anheuser-Busch Cos., Inc. 117,969
----------
BUILDING MATERIALS 0.3%
1,500 Armstrong World Industries, Inc. 101,062
----------
BUSINESS SERVICES 3.5%
2,600 Accustaff, Inc.* 81,250
1,400 Administaff, Inc.* 64,575
5,800 First Data Corp. 193,212
Number
of Shares Value
- ---------- -------
BUSINESS SERVICES 3.5% (CONT'D.)
3,300 Fiserv, Inc.* $ 140,147
4,000 Maximus, Inc.* 116,750
1,000 NOVA Corp.* 35,750
8,868 Outdoor Systems, Inc.* 248,304
2,782 Paychex, Inc. 113,193
2,000 PMT Services, Inc.* 50,875
----------
1,044,056
----------
CHEMICALS 2.1%
2,400 B.F. Goodrich Co. 119,100
1,200 Dow Chemical Co. 116,025
1,300 The Lubrizol Corp. 39,325
3,900 Mallinckrodt, Inc. 115,781
2,500 Union Carbide Corp. 133,438
3,400 Westvaco Corp. 96,050
----------
619,719
----------
COMMUNICATIONS 0.7%
3,800 Harmonic Lightwaves, Inc.* 58,425
5,200 Scientific-Atlanta, Inc. 131,950
----------
190,375
----------
COMPUTER EQUIPMENT 1.1%
2,900 International Business
Machines Corp. 332,956
----------
COMPUTER SERVICES 1.9%
2,000 Computer Horizons Corp.* 74,125
2,400 Data Processing Resources Corp.* 74,550
6,100 Electronic Data Systems Corp. 244,000
4,600 Sungard Data Systems, Inc.* 176,525
----------
569,200
----------
COMPUTER SOFTWARE 0.8%
3,000 CBT Group PLC-ADR* 160,500
2,300 Transaction Systems Architects, Inc.* 88,550
----------
249,050
----------
(LOGO)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
CONSTRUCTION 0.7%
4,100 Fluor Corp. $209,100
----------
CONSUMER PRODUCTS 0.9%
2,500 American Greetings Corp., Class A 127,344
4,400 Westpoint Stevens, Inc.* 145,200
----------
272,544
----------
CONSUMER SERVICES 1.0%
6,368 Jostens, Inc. 153,628
3,800 Pittston Brink's Group 140,125
----------
293,753
----------
DRUGS 1.1%
2,400 American Home Products Corp. 124,200
1,700 Jones Pharma, Inc. 56,312
2,900 Pharmacia & Upjohn, Inc. 133,762
----------
314,274
----------
ELECTRIC UTILITIES 2.0%
2,800 DTE Energy Co. 113,050
4,386 Duke Energy Corp. 259,870
4,800 PP&L Resources, Inc. 108,900
4,900 Washington Water Power Co. 109,944
----------
591,764
----------
ELECTRONICS 1.6%
5,300 AMP, Inc. 182,187
2,000 General Electric Co. 182,000
2,900 General Signal Corp. 104,400
----------
468,587
----------
ENTERTAINMENT 0.2%
1,200 SFX Entertainment, Inc.* 55,050
----------
FINANCIAL SERVICES 2.6%
2,100 Capital One Financial Corp. 260,794
5,900 Capstead Mortgage Corp. 49,412
Number
of Shares Value
- ---------- -------
FINANCIAL SERVICES 2.6% (CONT'D.)
2,800 Finova Group, Inc. $158,550
1,500 Marsh & McLennan Cos., Inc. 90,656
4,100 SLM Holding Corp. 200,900
----------
760,312
----------
FOOD 1.2%
5,300 Supervalu, Inc. 235,188
4,900 Sysco Corp. 125,563
----------
360,751
----------
FUNERAL SERVICES 0.6%
4,200 Equity Corp. International* 100,800
2,000 Service Corp. International 85,750
----------
186,550
----------
HEALTH CARE EQUIPMENT
AND SUPPLIES 0.3%
2,600 Omnicare, Inc. 99,125
----------
HOLDING COMPANIES 1.1%
3,300 Public Service Enterprise Group, Inc. 113,644
8,500 RJR Nabisco Holdings Corp. 201,875
----------
315,519
----------
HOME FURNISHINGS 0.5%
2,800 Furniture Brands International, Inc.* 78,575
2,800 Miller (Herman), Inc. 68,075
----------
146,650
----------
HOSPITAL MANAGEMENT
AND SERVICES 0.5%
2,400 Columbia/HCA Healthcare Corp. 69,900
2,735 Concentra Managed Care, Inc.* 71,110
----------
141,010
----------
HOTELS 0.3%
4,400 Host Marriott Corp.* 78,375
----------
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AQUINAS FUNDS
- -------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
INFORMATION SYSTEMS 0.6%
4,600 Affiliated Computer Services, Inc.* $177,100
----------
INSURANCE 2.3%
1,600 CIGNA Corp. 110,400
600 General Re Corp. 152,100
2,800 MBIA, Inc. 209,650
2,600 Ohio Casualty Corp. 115,050
2,000 Reliastar Financial Corp. 96,000
----------
683,200
----------
LEISURE 0.8%
8,900 Brunswick Corp. 220,275
----------
MANUFACTURING 1.9%
3,400 Cummins Engine Co., Inc. 174,250
4,200 Danaher Corp. 154,087
2,900 Gentex Corp.* 52,562
3,700 Sybron International Corp.* 93,425
1,400 Waters Corp.* 82,513
----------
556,837
----------
MEDIA 0.8%
3,900 Capstar Broadcasting Corp.* 97,987
600 Chancellor Media Corp.* 29,794
1,000 Clear Channel
Communications, Inc.* 109,125
----------
236,906
----------
MINING 0.6%
3,000 Newmont Mining Corp. 70,875
1,900 Phelps Dodge Corp. 108,656
----------
179,531
----------
NATURAL GAS UTILITIES 1.6%
6,000 El Paso Natural Gas Co. 229,500
2,900 NICOR, Inc. 116,362
3,100 Peoples Energy Corp. 119,738
----------
465,600
----------
Number
of Shares Value
- ---------- -------
OFFICE EQUIPMENT 1.0%
2,900 Boise Cascade Office Products
Corp.* $ 44,950
2,400 Harris Corp. 107,250
2,000 United Stationers, Inc.* 129,500
----------
281,700
----------
OIL AND GAS 6.9%
2,600 Amoco Corp. 108,225
1,800 Atlantic Richfield Co. 140,625
1,500 Barrett Resources Corp.* 56,156
3,660 Burlington Resources, Inc. 157,609
1,500 Chevron Corp. 124,594
2,300 Cooper Cameron Corp.* 117,300
6,500 Cross Timbers Oil Co. 123,906
4,000 EVI Weatherford, Inc.* 148,500
6,600 Global Industries, Ltd.* 111,375
1,400 Kerr-McGee Corp. 81,025
4,500 Occidental Petroleum Corp. 121,500
8,000 R&B Falcon Corp.* 181,000
2,100 Repsol SA-ADR 115,500
1,100 Santa Fe International Corp. 33,275
3,000 Texaco, Inc. 179,063
3,400 Ultramar Diamond Shamrock Corp. 107,313
3,400 Williams Cos., Inc. 114,750
----------
2,021,716
----------
PRINTING AND PUBLISHING 0.9%
7,500 Deluxe Corp. 268,594
----------
REAL ESTATE 0.2%
2,000 FelCor Suite Hotels, Inc. 62,750
----------
RESTAURANT 0.6%
5,200 Brinker International, Inc.* 100,100
1,700 Starbucks Corp.* 90,844
----------
190,944
----------
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AQUINAS FUNDS
- -------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Number
of Shares Value
- ---------- -------
RETAIL 2.9%
2,800 Abercrombie & Fitch Co.* $123,200
1,800 Bed Bath and Beyond, Inc.* 93,262
600 BJ's Wholesale Club, Inc.* 24,375
3,600 Borders Group, Inc.* 133,200
3,600 Fingerhut Cos., Inc. 118,800
2,800 General Nutrition Cos., Inc.* 87,150
3,000 Michaels Stores, Inc.* 105,844
1,500 Penney (J.C.) Co., Inc. 108,469
1,200 Whole Foods Market, Inc.* 72,600
----------
866,900
----------
SEMICONDUCTORS 0.7%
2,800 Intel Corp. 207,550
----------
STEEL/IRON 0.5%
1,200 Nucor Corp. 55,200
2,900 USX-U.S. Steel Group, Inc. 95,700
----------
150,900
----------
TELECOMMUNICATIONS 2.3%
2,600 Bell Atlantic Corp. 118,625
3,100 GTE Corp. 172,437
4,000 SBC Communications, Inc. 160,000
1,700 Southern New England
Telecommunications Corp. 111,350
2,400 U.S. West Communications Group 112,800
----------
675,212
----------
TEXTILES 0.3%
2,100 Springs Industries, Inc., Class A 96,863
----------
TOBACCO PRODUCTS 0.3%
2,500 Philip Morris Cos., Inc. 98,438
----------
TRANSPORTATION 0.5%
3,200 GATX Corp. $ 140,400
----------
Total Common Stocks
(cost $13,462,130) 16,945,192
----------
Principal
Amount
FIXED INCOME BONDS 37.3%
ASSET-BACKED SECURITIES 5.4%
$225,000 Amresco Residential Securities
Mortgage Loan Trust,
8.075%, 4/25/26 245,990
150,000 Amresco Residential Securities
Mortgage Loan Trust,
7.615%, 3/25/27 154,093
100,000 Amresco Residential Securities
Mortgage Loan Trust,
7.05%, 4/25/27 103,428
80,000 California Infrastructure SCA 97-1A5,
6.28%, 9/25/05 80,704
120,000 Citibank Credit Card Master Trust,
1998-1 Class A, 5.75%, 1/15/03 120,010
175,000 First USA Credit Card Master Trust,
5.798%, 2/17/05 174,963
66,984 Ford Credit Auto Trust,
6.50%, 11/15/99 67,134
80,382 IMC Home Equity Loan Trust 1997-4 A,
6.1837%, 10/20/27 77,798
150,000 The Money Store Home Equity,
7.55%, 2/15/20 155,315
125,000 Olympic Auto Trust,
6.625%, 12/15/02 127,248
125,000 Providian Master Trust 97-4A,
6.25%, 6/15/07 125,981
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AQUINAS FUNDS
- -------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Principal
Amount Value
- ---------- -------
ASSET-BACKED SECURITIES 5.4% (CONT'D.)
$100,000 Saxon Asset Securities Trust 97-3 AF6,
6.73%, 2/25/27 $ 101,207
50,000 UCFC Home Equity Loan Trust,
7.825%, 12/15/27 53,374
----------
1,587,245
----------
CORPORATE BONDS 23.2%
225,000 Associates Corp. of North America,
7.75%, 2/15/05 243,090
225,000 BarclaysAmerican Corp.,
7.875%, 8/15/98 225,443
120,000 Bear Stearns Corp.,
6.75%, 12/15/07 122,550
150,000 Bellsouth Capital Funding,
6.04%, 11/15/26 152,073
200,000 Citicorp,
8.11%, 11/4/04 222,088
281,000 Coca-Cola Enterprises, Inc.,
7.00%, 10/1/26 300,971
130,000 Commercial Credit Co.,
7.875%, 2/1/25 154,196
120,000 Compania Telecom Chile,
7.625%, 7/15/06 123,648
100,000 Corporation Andina de Fomento,
7.10%, 2/1/03 101,680
100,000 El Paso Natural Gas Co.,
6.75%, 11/15/03 102,397
100,000 First Maryland Bancorp,
7.20%, 7/1/07 105,852
150,000 General Motors Acceptance Corp.,
8.875%, 6/1/10 180,490
100,000 Global Marine, Inc.,
7.125%, 9/1/07 103,931
225,000 Grand Metropolitan Investment PLC,
7.45%, 4/15/35 250,832
150,000 GTE Florida, Inc.,
6.31%, 12/15/02 150,711
Principal
Amount Value
- ---------- -------
CORPORATE BONDS 23.2% (CONT'D.)
$260,000 Household Finance Corp.,
7.125%, 4/30/99 $262,306
250,000 IBM Credit Corp.,
5.79%, 3/20/00 249,973
100,000 Lasmo, Inc.,
7.30%, 11/15/27 callable 105,267
220,000 Lehman Brothers, Inc.,
8.80%, 3/1/15 262,132
120,000 Lockheed Martin Corp.,
6.85%, 5/15/01 122,410
250,000 Motorola,
6.50%, 9/1/25 259,338
100,000 Nabisco, Inc.,
7.55%, 6/15/15 104,240
150,000 NationsBank Corp.,
8.57%, 11/15/24 187,850
175,000 New Jersey Bell Telephone Co.,
7.85%, 11/15/29 208,962
60,000 Norfolk Southern Corp.,
6.95%, 5/1/02 61,892
200,000 Norwest Financial, Inc.,
6.00%, 8/1/99 200,132
250,000 Pacific Gas & Electric Co.,
7.67%, 12/15/98 251,745
250,000 Penney (J.C.) & Co.,
7.40%, 4/1/37 274,480
165,000 Private Export Funding,
5.50%, 3/15/01 164,010
115,000 Rodamco NV,
7.30%, 5/15/05 123,205
150,000 Rollins Truck Leasing Corp.,
7.00%, 3/15/01 153,285
100,000 Salomon, Inc.,
7.30%, 5/15/02 103,920
300,000 Southern California Edison Co.,
5.60%, 12/15/98 299,691
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AQUINAS FUNDS
- -------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1998 (UNAUDITED)
Principal
Amount Value
- ---------- -------
CORPORATE BONDS 23.2% (CONT'D.)
$130,000 Tenneco, Inc.,
8.075%, 10/1/02 $ 138,415
250,000 Virginia Electric & Power Co.,
9.30%, 6/9/99 257,340
250,000 Wal-Mart Stores,
6.125%, 10/1/99 251,015
250,000 WMX Technologies, Inc.,
7.10%, 8/1/26 255,640
----------
6,837,200
----------
U.S. GOVERNMENT AGENCIES 2.6%
125,000 Federal Farm Credit,
6.35%, 10/22/01 125,116
201,988 FHLMC #555316,
9.0%, 6/01/19 214,740
50,000 FNMA, Series 1993-191, Class PH,
6.00%, 5/25/08 50,273
100,000 FNR 1998-17,
6.50%, 1/18/26 99,522
5,691 GNMA, Pool 031096,
9.50%, 6/15/09 6,147
133,824 Guaranteed Export Certificates,
6.28%, 6/15/04 124,935
150,000 Tennessee Valley Authority,
6.235%, 7/15/45 155,142
----------
775,875
----------
U.S. TREASURY OBLIGATIONS 6.1%
255,000 U.S. Treasury Bond,
8.00%, 11/15/21 328,463
100,000 U.S. Treasury Note,
6.25%, 8/31/00 101,441
80,000 U.S. Treasury Note,
6.50%, 5/31/02 82,609
350,000 U.S. Treasury Note,
6.25%, 6/30/02 358,547
Principal
Amount Value
- ---------- -------
U.S. TREASURY OBLIGATIONS 6.1% (CONT'D.)
$100,000 U.S. Treasury Note,
7.50%, 2/15/05 $ 110,612
580,000 U.S. Treasury Note,
7.00%, 7/15/06 633,174
690,000 U.S. Treasury Strips,
11/15/21 182,167
----------
1,797,013
----------
Total Fixed Income Bonds
(cost $10,696,679) 10,997,333
----------
CONVERTIBLE BONDS 0.5%
170,000 Quantum Corp.,
7.00%, 8/1/04
(cost $170,000) 160,650
----------
SHORT-TERM INVESTMENTS 5.0%
500,000 Associates Corp. Commercial Paper,
5.85%, 7/1/98 500,000
972,627 UMB Bank, n.a., Money Market
Fiduciary, Demand Deposit, 4.0% 972,627
----------
Total Short-term Investments
(cost $1,472,627) $ 1,472,627
----------
Total Investments 100.2%
(cost $25,801,436) $29,575,802
Liabilities, less
other assets (0.2%) (66,302)
----------
Net Assets 100.0% $29,509,500
==========
*Non-income producing security
See notes to financial statements.
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AQUINAS FUNDS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(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
("GAAP"). The presentation of financial statements in conformity with GAAP
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 revenues and expenses during the reporting period.
Actual results could differ from those estimates and assumptions.
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.
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AQUINAS FUNDS
- -------------------------------------------------------------------------------
d) Distributions to Shareholders - All of the Funds except the Fixed Income Fund
pay dividends of net investment income quarterly. The Fixed Income Fund pays
dividends of net investment income monthly. Distributions of net realized
capital 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. Accordingly, at June 30, 1998, reclassifications were
recorded to increase (decrease) undistributed net investment income by $(7,039),
$(256), $132,177 and $(3,119); increase (decrease) accumulated net realized gain
on investments by $7,735, $954, $(131,418) and $3,817; and decrease paid-in
capital in excess of par by $696, $698, $759 and $698 for the Fixed Income,
Equity Income, Equity Growth and Balanced Funds, respectively.
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 an accrual basis. Premiums and discounts on
securities purchased are amortized using the level yield maturity method.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
Each Fund 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 percentages of 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 waive 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 daily
net assets of the Fixed Income Fund and 1.50% of the average daily net assets of
the Equity Income, Equity Growth and Balanced Funds, respectively, computed on a
daily basis. For the six months ended June 30, 1998, expenses of $1,930 were
waived by the Adviser in the Fixed Income Fund.
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. For the six months ended June 30, 1998, administrative fees of
$7,345 were waived in the Balanced Fund.
(logo)
AQUINAS FUNDS
- -------------------------------------------------------------------------------
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Funds for the six months ended June 30, 1998,
were as follows:
<TABLE>
<CAPTION>
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
----- ----- ----- -----
<C> <C> <C> <C>
Shares sold 530,794 306,185 393,045 93,355
Shares issued to holders in
reinvestment of distributions 73,908 16,710 (4) 14,178
Shares redeemed (783,893) (984,815) (336,315) (205,323)
---------- ---------- ---------- -----------
Net Increase (Decrease) (179,191) (661,920) 56,726 (97,790)
========== ========== ========== ==========
Transactions in shares of the Funds for the year ended December 31, 1997, were as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
----- ----- ----- -----
Shares sold 1,210,288 1,147,801 702,133 450,990
Shares issued to holders in
reinvestment of distributions 199,942 569,804 299,005 373,535
Shares redeemed (1,167,624) (861,145) (299,619) (878,695)
---------- ---------- ---------- -----------
Net Increase (Decrease) 242,606 856,460 701,519 (54,170)
========== ========== ========== ==========
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term investments, for the Funds for the six months ended
June 30, 1998, were as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
----- ----- ----- -----
Purchases
U.S. Government $ 5,668,641 - - $ 4,680,641
Other 15,765,451 $20,539,488 $15,663,363 9,145,645
Sales
U.S. Government 13,824,052 - - 4,477,919
Other 8,527,110 26,685,660 15,204,996 10,773,579
At June 30, 1998, gross unrealized appreciation and depreciation on investments, based on cost for federal income tax purposes
of $37,874,927, $54,071,407, $32,350,727 and $25,807,087 were as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
----- ----- ----- -----
Appreciation $958,863 $15,586,903 $11,264,249 $4,427,853
(Depreciation) (17,914) (3,202,349) (632,380) (659,138)
---------- ---------- ---------- -----------
Net Appreciation on Investments $940,949 $12,384,554 $10,631,869 $3,768,715
========== ========== ========== ==========
</TABLE>
(LOGO)
AF
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 includes more complete information about management fees and
expenses. Please read the prospectus carefully.
