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AQUINAS FUNDS
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SEMI-ANNUAL REPORT
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THE AQUINAS FUNDS, INC.
1-800-423-6369
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June 30, 2000
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DEAR SHAREHOLDER: JUNE 2000
The Aquinas Funds are diversified and do not concentrate their investments in
any one industry sector. They are structured that way, in part, to reduce risk
during turbulent market conditions. The first half of 2000 was very volatile
having some of the most dramatic equity market ups and downs in memory.
Contributing to the market turmoil were interest rate hikes by the Federal
Reserve and high oil prices. During the first half of 2000, the Internet dot.com
speculation bubble started to burst as investors began to shift their attention
to earnings potential in their analysis of companies. In addition to the ups and
downs of new economy versus old economy stocks, the value and growth styles had
dramatic shifts during the first six months of 2000.
What happened in the first half of 2000? The Dow Jones Industrial Average was
-8.44% and the S&P 500/R was -0.42%. The Russell 1000 (large- and mid-cap
stocks) was up 0.78% and the Russell 2000 (small-cap stocks) was up 3.04%. The
Aquinas Equity Growth Fund (large-, mid- and small-cap stocks) was up 7.08% and
the Aquinas Equity Income Fund (large- and mid-cap value stocks) was -6.75%.
Bond markets had an inverted yield curve meaning short-term rates were higher
than long-term rates. This occurred because the Federal Reserve increased short-
term rates while the U.S. Treasury bought back long-term debt with the
government budget surplus. The Aquinas Fixed Income Fund (Intermediate term) was
up 3.14%. Interest spreads on corporate bonds have widened above comparable term
Treasury securities to historic proportions since the beginning of the year.
While this condition limited the returns of The Aquinas Fixed Income Fund during
the first six months, this bodes well for the future when the spreads return to
normal. We believe patient investors will be well rewarded.
The Aquinas Funds' Board of Directors has voted to restructure the Aquinas
Balanced Fund and rename it the Aquinas Small-Cap Fund. The change will take
effect later this year upon the completion of regulatory filings. The Board made
this change because the results of our Balanced Fund can be obtained by simply
investing in the other Aquinas Funds in the same percentage allocation as the
Balanced Fund. Aquinas personnel will work with existing shareholders to
accomplish their specific objectives. Many investors had asked us to open a
small-cap fund with Catholic values and this will happen when the fund is
renamed and restructured. The Aquinas Balanced Fund had a +1.47% return for the
first six months of 2000.
As an investor, the money that you place in the Aquinas Funds should be money
that you intend to keep invested for a period of at least three to five years.
We have observed that a number of investors move money in and out of the market
and from fund to fund too frequently. Either they try to time the markets,
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"they have a need for action," or they have not clearly identified their
investment goals. If you find yourself moving money frequently from fund to
fund, we recommend that you consult with a financial professional about the role
that mutual funds play in your investment portfolio or you can call us and we
will give you some ideas on the subject.
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AVERAGE
THREE FIVE ANNUAL
YEAR YEAR SINCE
TOTAL RETURNS FOR THE SIX ONE AVERAGE AVERAGE INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTHS YEAR ANNUAL ANNUAL <F1>
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Aquinas Fixed Income Fund 3.14% 3.18% 4.64% 5.04% 4.90%
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Aquinas Equity Income Fund -6.75% -13.54% 3.84% 11.63% 11.41%
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Aquinas Equity Growth Fund 7.08% 23.94% 22.32% 23.39% 19.03%
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Aquinas Balanced Fund 1.47% 1.34% 8.32% 11.51% 10.31%
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<F1> Inception date of January 3, 1994. Returns shown include the reinvestment
of all 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.
CATHOLIC VALUES INVESTING has received a new challenging situation. AT&T (Ma
Bell) ANNOUNCED THAT IT IS CONSIDERING DISTRIBUTION OF HARDCORE XXX-RATED PAY-
PER-VIEW MOVIES ON THE CABLE NETWORK THAT IT ACQUIRED LAST YEAR. Aquinas Funds
and other concerned investors are involved in discussions with AT&T executives
and directors to reverse this situation. ON JULY 31, 2000, WE WERE INFORMED THAT
AT&T HAS INDEFINITELY POSTPONED ITS DECISION TO MAKE THE "HOTNETWORK" XXX-RATED
PAY-PER-VIEW MOVIE CHANNEL AVAILABLE. While Aquinas is working to obtain a
PERMANENT RESOLUTION, you as investors and concerned citizens can write to
challenge AT&T yourselves. Do not underestimate your power when you pick up a
pen or phone and make yourself heard.
Please call or write to:
Mr. Michael Armstrong, Chairman and CEO
AT&T
32 Avenue of the Americas
New York, NY 10013-2412
Phone # 212-387-5400
Mr. Daniel Somers, President and CEO
AT&T Broadband and Internet Services
9197 South Peoria Street
Englewood, CO 80112
Phone # 720-875-4171
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AT&T has argued that parental controls are adequate and that their competitors
are distributing pornography. These arguments ignore the issue that AT&T would
be distributing raw pornography, that no parent can be comfortable when their
children are at other houses or places that do not consider parental control
systems, and that AT&T is the largest cable distributor in the U.S.
Pornographers could all state that their product must be OK because "Ma Bell" is
distributing it! This is business role modeling at its worst!
Target has responded to us about its involvement in the support of Planned
Parenthood. It states that its Dayton Hudson Foundation gave $18,000 last year
to Planned Parenthood. With the name change of the company from Dayton Hudson to
Target, it is setting up the Target Foundation which will develop a new set of
guidelines. Our request that Planned Parenthood be excluded will be considered.
May Department Stores has written to us to confirm that they no longer donate to
Planned Parenthood.
General Electric reports that women are being promoted to top operating
positions and we believe that the "glass ceiling" has disappeared there.
Over the past 6 1/2 years, The Aquinas Funds has proven that corporations will
respond to shareholder activism. One step at a time, your investment has given
us the platform to reach out to corporate executives and achieve results that
reflect an improved society.
Thank you for your continued confidence in us.
Sincerely,
/s/Frank Rauscher
Frank Rauscher
President and Treasurer
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FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
Principal
Amount Value
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FIXED INCOME BONDS 103.0%
ASSET-BACKED SECURITIES 16.6%
$300,000 Amresco Residential Securities
Mortgage Loan Trust,
8.075%, 4/25/26 $302,061
349,246 Amresco Residential Securities
Mortgage Loan Trust,
7.615%, 3/25/27 340,229
190,000 AT&T Universal Card Master Trust,
5.95%, 10/17/02 189,462
350,000 Capital Auto Receivables Asset Trust,
5.68%, 8/15/04 343,136
240,000 Carco Auto Loan Master Trust,
6.18%, 11/17/03 239,822
412,080 Chase Commercial Mortgage
Securities Corp., 7.60%, 12/18/05 414,619
10,000 Citibank Credit Card Master Trust,
6.35%, 8/15/02 9,991
240,000 First Chicago Master Trust II,
6.72%, 10/15/02 240,074
150,000 First Chicago Master Trust II,
6.781%, 4/15/03 150,154
200,000 First USA Credit Card Master Trust,
6.87%, 8/15/03 200,600
240,000 First USA Credit Card Master Trust,
6.81%, 11/15/03 240,065
90,000 First USA Credit Card Master Trust,
6.23%, 4/19/04 90,011
110,000 Fleet Credit Card Master Trust,
6.17%, 7/15/03 110,007
524,540 GMAC Commercial Mortgage
Securities, Inc., 6.411%, 11/15/07 506,706
118,743 IMPAC CMB Trust,
6.868%, 7/25/28 118,683
375,000 MBNA Master Credit Card Trust,
6.60%, 11/15/04 371,558
Principal
Amount Value
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ASSET-BACKED SECURITIES 16.6% (CONT'D.)
$ 200,000 MBNA Master Credit Card Trust,
7.35%, 7/16/07 $ 201,550
454,657 Merrill Lynch Mortgage Investors,
Inc., 6.95% 6/18/29 451,065
714,631 Mortgage Capital Funding, Inc.,
6.758%, 2/20/04 704,440
460,000 Norwest Asset Securities Corp.,
6.00%, 1/25/29 365,939
195,933 Olympic Auto Trust,
6.625%, 12/15/02 195,778
375,000 Providian Master Trust, 97-4A,
6.25%, 6/15/07 368,183
400,000 Prudential Securities Secured
Financing Corp.,
6.48%, 1/15/09 374,956
50,000 Residential Accredit Loans, Inc.,
6.50%, 5/25/29 41,231
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6,570,320
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CORPORATE BONDS 63.4%
570,000 American Airlines,
7.024%, 10/15/09 541,517
200,000 Associates Corp. of North America,
5.80%, 4/20/04 187,434
525,000 Associates Corp. of North America,
7.75%, 2/15/05 523,273
200,000 Bank of America Corp.,
6.625%, 8/01/07 188,050
400,000 Bear Stearns Corp.,
6.75%, 12/15/07 365,496
655,000 Bellsouth Capital Funding,
6.04%, 11/15/26 643,538
445,000 Citicorp, 8.00%, 2/1/03 450,037
1,275,000 Coca-Cola Enterprises, Inc.,
7.00%, 10/1/26 1,244,043
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FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Principal
Amount Value
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CORPORATE BONDS 63.4% (CONT'D.)
$ 200,000 Coca-Cola Enterprises, Inc.,
6.75%, 9/15/28 $ 171,890
600,000 Commercial Credit Co.,
7.875%, 2/1/25 615,948
420,000 Compania Telecom Chile,
7.625%, 7/15/06 403,460
400,000 Corporation Andina de Fomento,
7.10%, 2/1/03 390,492
120,000 Daimlerchrysler NA,
7.75%, 6/15/05 121,031
280,000 Deutsche Telecom, 8.00%, 6/15/10 282,262
280,000 Deutsche Telecom, 8.25%, 6/15/30 284,362
620,000 Donaldson Lufkin Jenrette Securities
Corp., 5.625%, 2/15/16 611,549
510,000 Edison International, Inc.,
6.875%, 9/15/04 495,470
350,000 El Paso Energy Corp.,
6.75%, 11/15/03 342,832
515,000 EOP Operating LP,
6.376%, 2/15/12 503,989
190,000 First Union Corp.,
6.40%, 4/1/08 171,709
225,000 First Union Corp.,
6.824%, 8/1/26 217,874
1,000,000 First Union Corp.,
7.50%, 4/15/35 997,770
1,200,000 Ford Motor Credit Co.,
7.375%, 10/28/09 1,161,012
400,000 Ford Motor Credit Co.,
6.375%, 2/1/29 326,484
300,000 General Motors Acceptance Corp.,
5.95%, 3/14/03 288,816
600,000 General Motors Acceptance Corp.,
8.875%, 6/1/10 638,442
400,000 Global Marine, Inc.,
7.125%, 9/1/07 379,664
Principal
Amount Value
--------- -----
CORPORATE BONDS 63.4% (CONT'D.)
$ 950,000 Grand Metropolitan Investment PLC,
7.45%, 4/15/35 $ 951,644
690,000 Heller Financial, Inc.,
6.50%, 7/22/02 676,448
310,000 Heller Financial, Inc.,
7.875%, 5/15/03 309,061
1,000,000 Household Finance Corp.,
7.20%, 7/15/06 964,040
1,100,000 Hydro-Quebec,
8.05%, 7/7/24 1,163,580
800,000 IBM Corp.,
6.22%, 8/1/27 770,344
1,290,000 Lehman Brothers Hldg., Inc.,
8.80%, 3/1/15 1,363,337
1,030,000 Motorola, Inc.,
6.50%, 9/1/25 993,167
700,000 NationsBank Corp.,
8.57%, 11/15/24 750,568
790,000 New Jersey Bell Telephone Co.,
7.85%, 11/15/29 776,894
175,000 Occidental Petroleum,
8.45%, 2/15/29 180,245
1,125,000 Penney (J.C.) & Co., Inc.,
7.40%, 4/1/37 1,017,157
190,000 Phillips Petroleum Company,
8.50%, 5/25/05 196,622
630,000 Service Corp. International,
6.00%, 12/15/05 340,200
200,000 Sprint Capital Corp.,
6.90%, 5/1/19 177,522
900,000 Transamerica Financial Corp.,
7.25%, 8/15/02 897,588
430,000 Tyco International Group,
6.25%, 6/15/03 409,300
400,000 WMX Technologies, Inc.,
7.10%, 8/1/26 375,944
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FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Principal
Amount Value
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CORPORATE BONDS 63.4% (CONT'D.)
$200,000 WorldCom, Inc.,
7.75%, 4/1/07 $ 199,970
------------
25,062,075
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U.S. GOVERNMENT AGENCIES 17.0%
600,000 FHLMC,
6.87%, 1/15/05 596,304
197,000 FHLMC,
5.75%, 3/15/09 178,864
694,000 FHLMC,
6.625%, 9/15/09 669,294
440,000 FHLMC Gold 15 Year TBA,
8.00%, 7/25/15 444,400
297,375 FHLMC, Pool 555316,
9.00%, 6/1/19 308,247
770,000 FNCL 30 Year TBA,
8.00%, 7/15/30 772,641
440,000 FNCL 30 Year TBA,
8.00%, 7/15/30 441,650
630,000 FNCL 30 Year TBA,
6.50%, 7/15/30 593,378
540,000 FNCL 30 Year TBA,
6.50%, 7/15/30 508,777
550,000 FNMA, 5.125%, 2/13/04 516,719
200,000 FNMA, 6.625%, 9/15/09 192,880
310,505 FNMA, #523850,
10.50%, 10/1/14 329,778
267,722 GNMA, #780904,
9.50%, 7/15/18 278,514
300,000 GNMA, 1998-22PD,
6.50%, 9/20/28 271,155
600,000 Tennessee Valley Authority,
6.235%, 7/15/45 595,752
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6,698,353
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Principal
Amount Value
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U.S. TREASURY OBLIGATIONS 6.0%
$200,000 U.S. Treasury Bond,
7.625%, 2/15/07 $ 203,250
980,000 U.S. Treasury Bond,
8.875%, 8/15/17 1,246,432
100,000 U.S. Treasury Bond,
8.125%, 8/15/21 121,937
640,000 U.S. Treasury Note,
7.00%, 7/15/06 662,995
70,000 U.S. Treasury Strips, 2/15/20 20,809
440,000 U.S. Treasury Strips, 11/15/21 118,862
------------
2,374,285
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Total Fixed Income Bonds
(cost $41,995,373) 40,705,033
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SHORT-TERM INVESTMENT 4.3%
1,683,113 UMB Bank, n.a., Money Market
Fiduciary, Demand Deposit, 4.09%
(cost $1,683,113) 1,683,113
------------
Total Investments 107.3%
(cost $43,678,486) 42,388,146
Liabilities less
Other Assets (7.3)% (2,864,528)
------------
Net Assets 100.0% $39,523,618
============
See notes to financial statements.
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EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
COMMON STOCKS 95.5%
AEROSPACE 0.9%
7,100 Northrop Grumman Corp. $ 470,375
------------
AIRLINES 1.0%
9,900 Delta Airlines, Inc. 500,569
------------
ALUMINUM PRODUCTS 0.9%
15,800 Alcoa, Inc. 458,200
------------
AUTOMOTIVE AND RELATED
INDUSTRIES 3.5%
18,500 Dana Corp. 391,969
9,700 Ford Motor Co. 417,100
15,300 General Motors Corp. 888,356
8,000 Tenneco Automotive, Inc. 42,000
1,270 Visteon Corp.<F1> 15,399
------------
1,754,824
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BANKING 8.7%
20,500 Bank of America Corp. 881,500
33,000 Bank of New York Co., Inc. 1,534,500
4,100 Morgan (J.P.) & Co., Inc. 451,512
9,800 PNC Bank Corp. 459,375
35,600 Union Planters Corp. 994,575
------------
4,321,462
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BUILDING MATERIALS 0.9%
27,700 Armstrong Holdings, Inc. 424,156
------------
CHEMICALS 1.1%
15,300 B. F. Goodrich Co. 521,156
------------
COMPUTER PRODUCTS 1.3%
5,900 International Business
Machines Corp. 646,419
------------
Number
of Shares Value
--------- -----
COMPUTER SOFTWARE 1.0%
10,100 Computer Associates
International, Inc. $ 516,994
------------
CONSUMER PRODUCTS 6.8%
9,200 Brown-Forman Corp., Class B 494,500
27,300 Brunswick, Corp. 452,156
8,700 Eastman Kodak Co. 517,650
20,000 Fortune Brands, Inc. 461,250
40,000 Pactiv Corp.<F1> 315,000
23,600 Whirlpool Corp. 1,100,350
------------
3,340,906
------------
ELECTRIC UTILITIES 3.8%
15,720 American Electric Power Co. 465,705
16,000 DTE Energy Co. 489,000
15,500 New Century Energies, Inc. 465,000
14,000 Public Service Enterprise Group, Inc. 484,750
------------
1,904,455
------------
ELECTRICAL PRODUCTS 2.5%
19,600 Hubbell, Inc., Class B 499,800
38,000 Thomas and Betts Corp. 726,750
------------
1,226,550
------------
FINANCIAL SERVICES 7.3%
12,400 A.G. Edwards, Inc. 483,600
16,400 Federal National Mortgage Assn. 855,875
29,100 KeyCorp 512,888
15,300 Morgan Stanley Dean Witter and Co. 1,273,725
13,200 Wells Fargo & Co. 511,500
------------
3,637,588
------------
FOOD 1.7%
6,800 Hershey Foods Corp. 329,800
26,000 Supervalu, Inc. 495,625
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825,425
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EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
FORESTRY 1.0%
22,200 Georgia-Pacific Corp.
(Timber Group) $ 480,075
------------
HEALTH CARE PRODUCTS 1.6%
18,200 Mallinckrodt, Inc. 790,563
------------
INSURANCE 3.8%
15,900 American General Corp. 969,900
7,700 American International Group, Inc. 904,750
------------
1,874,650
------------
MACHINERY AND EQUIPMENT 0.4%
6,500 Caterpillar Inc. 220,187
------------
MANUFACTURING 2.0%
9,700 Illinois Tool Works, Inc. 552,900
10,800 Ingersoll-Rand Co. 434,700
------------
987,600
------------
NATURAL GAS UTILITIES 3.9%
28,300 El Paso Energy Corp. 1,441,531
15,600 NICOR, Inc. 508,950
------------
1,950,481
------------
OFFICE EQUIPMENT 3.1%
19,700 Avery Dennison Corp. 1,322,362
9,100 Xerox Corp. 188,825
------------
1,511,187
------------
OIL AND GAS 10.6%
29,000 Conoco Inc., Class B 712,313
7,200 Exxon Mobil Corp. 565,200
8,300 Kerr-McGee Corp. 489,181
15,800 KeySpan Corp. 485,850
26,900 Repsol SA-ADR 532,956
13,700 Royal Dutch Petroleum Co. 843,406
39,600 Ultramar Diamond Shamrock Corp. 982,575
Number
of Shares Value
--------- -----
OIL AND GAS 10.6% (CONT'D.)
25,000 USX-Marathon Group $ 626,562
------------
5,238,043
------------
PAPER AND PAPER PRODUCTS 5.2%
11,600 Bowater, Inc. 511,850
10,700 Georgia-Pacific Group, Inc. 280,875
24,000 Kimberly-Clark Corp. 1,377,000
16,100 Westvaco Corp. 399,481
------------
2,569,206
------------
PRINTING AND PUBLISHING 2.0%
42,300 Deluxe Corp. 996,694
------------
REAL ESTATE 0.9%
75,000 HRPT Properties Trust 459,375
------------
RETAIL 5.6%
19,100 Costco Wholesale Corp.<F1> 630,300
9,100 The May Department Stores Co. 218,400
29,600 Penney (J.C.) Co., Inc. 545,750
15,900 Safeway, Inc.<F1> 717,488
11,200 Target Corp. 649,600
------------
2,761,538
------------
SEMICONDUCTORS 3.2%
11,900 Intel Corp. 1,590,881
------------
STEEL AND IRON 1.7%
44,200 USX-U.S. Steel Group, Inc. 820,463
------------
TELECOMMUNICATIONS 5.7%
9,200 Bell Atlantic Corp. 467,475
21,100 GTE Corp. 1,313,475
12,107 SBC Communications, Inc. 523,628
5,800 U S WEST, Inc. 497,350
------------
2,801,928
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EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
TEXTILES 0.8%
11,700 Springs Industries, Inc., Class A $ 374,400
------------
TOBACCO PRODUCTS 1.6%
17,300 R.J. Reynolds Tobacco
Holdings, Inc. 483,319
20,500 UST, Inc. 301,094
------------
784,413
------------
TRANSPORTATION 1.0%
15,200 GATX Corp. 516,800
------------
Total Common Stocks
(cost $50,259,435) 47,277,563
------------
Principal
Amount Value
--------- -----
SHORT-TERM INVESTMENT 5.4%
$2,697,754 UMB Bank, n.a., Money Market
Fiduciary, Demand Deposit, 4.83%
(cost $2,697,754) $ 2,697,754
------------
Total Investments 100.9%
(cost $52,957,189) 49,975,317
Liabilities less
Other Assets (0.9)% (444,394)
------------
Net Assets 100.0% $49,530,923
============
<F1>Non-income producing security
See notes to financial statements.
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EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
COMMON STOCKS 94.1%
ADVERTISING 0.5%
3,700 Omnicom Group, Inc. $ 329,531
------------
BANKING 2.1%
29,809 Charter One Financial, Inc. 685,607
7,200 Northern Trust Corp. 468,450
6,500 Wells Fargo & Co. 251,875
------------
1,405,932
------------
BIOTECHNOLOGY 1.4%
2,300 Genentech, Inc.<F1> 395,600
4,100 PE Corp. - PE Biosystems Group 270,087
1,900 Qiagen N.V. 330,600
------------
996,287
------------
BUSINESS SERVICES 5.3%
30,900 Concord EFS, Inc.<F1> 803,400
15,975 Fiserv, Inc.<F1> 690,919
13,200 Iron Mountain, Inc.<F1> 448,800
11,300 Maximus, Inc.<F1> 250,014
14,427 NOVA Corp.<F1> 403,054
24,293 Paychex, Inc. 1,020,306
------------
3,616,493
------------
COMPUTER PRODUCTS 6.5%
10,200 Cabletron Systems, Inc.<F1> 257,550
28,100 Cisco Systems, Inc.<F1> 1,786,106
13,000 EMC Corp.<F1> 1,000,188
3,100 International Business
Machines Corp. 339,644
4,300 JDS Uniphase Corp.<F1> 515,462
6,200 Metromedia Fiber Network, Class A<F1> 246,063
4,850 Microchip Technology, Inc.<F1> 282,588
------------
4,427,601
------------
Number
of Shares Value
--------- -----
COMPUTER SERVICES 4.6%
13,500 Affiliated Computer Services, Inc.<F1> $ 446,344
3,800 America Online, Inc.<F1> 200,450
5,400 The Bisys Group, Inc. 332,100
14,200 CSG Systems International, Inc.<F1> 796,087
17,500 Sungard Data Systems, Inc.<F1> 542,500
9,500 Sun Microsystems, Inc.<F1> 863,906
------------
3,181,387
------------
COMPUTER SOFTWARE 5.7%
3,700 Adobe Systems, Inc. 481,000
3,100 Computer Associates
International, Inc. 158,681
3,400 Mercury Interactive Corp.<F1> 328,950
18,300 Microsoft Corp.<F1> 1,464,000
12,600 Oracle Corp.<F1> 1,059,188
1,200 Seibel Systems, Inc. 196,275
3,100 Symantec Corp.<F1> 167,206
------------
3,855,300
------------
CONSUMER GOODS 1.2%
4,000 Kimberly-Clark Corp. 229,500
12,500 Pepsico, Inc. 555,469
------------
784,969
------------
DIVERSIFIED MANUFACTURING
OPERATIONS 4.9%
2,400 Corning, Inc. 647,700
35,900 General Electric Co. 1,902,700
7,000 Honeywell International, Inc. 235,812
8,600 Perkinelmer, Inc. 568,675
------------
3,354,887
------------
DRUGS 7.4%
18,900 Biovail Corp. International<F1> 1,047,769
22,200 King Pharmaceuticals, Inc. 974,025
11,775 Jones Pharma, Inc. 470,264
6,300 Merck & Co., Inc. 482,737
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EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
DRUGS 7.4% (CONT'D.)
27,900 Pfizer, Inc. $1,339,200
9,500 QLT, Inc. 734,469
------------
5,048,464
------------
ELECTRICAL PRODUCTS 2.6%
12,200 Amphenol Corp., Class A<F1> 807,487
1 Agilent Technologies, Inc. 65
13,500 ANTEC Corp.<F1> 561,094
8,500 Conexant Systems, Inc.<F1> 413,312
------------
1,781,958
------------
ELECTRIC UTILITIES 0.7%
10,500 AES Corp. 479,061
------------
ELECTRONICS 1.4%
13,000 AVX Corp. 298,187
5,100 Hewlett-Packard Co. 636,862
------------
935,049
------------
ENTERTAINMENT 1.8%
4,800 International Speedway Corp.,
Class A 198,600
7,300 Time Warner, Inc. 554,800
7,227 Viacom, Inc., Class B 492,791
------------
1,246,191
------------
FINANCIAL SERVICES 5.6%
10,800 American Express Co. 562,950
33,200 AmeriCredit Corp.<F1> 564,400
9,500 Citigroup, Inc. 572,375
4,900 First Data Corp. 243,162
900 Knight Trading Group, Inc. 26,831
5,300 Marsh & McLennan Cos., Inc. 553,519
39,198 Metris Cos., Inc. 984,850
3,600 Morgan Stanley Dean Witter & Co. 299,700
------------
3,807,787
------------
Number
of Shares Value
--------- -----
HEALTH CARE PRODUCTS 1.3%
3,900 Allergan, Inc. $ 290,550
11,300 Medtronic, Inc. 562,881
------------
853,431
------------
HEALTH CARE SERVICES 2.8%
53,700 Health Management Association, Inc. 701,456
33,500 Tenet Healthcare Corp. 904,500
3,600 UnitedHealth Group, Inc. 308,700
------------
1,914,656
------------
INSURANCE 3.7%
5,200 AFLAC, Inc. 238,875
5,426 American International Group, Inc. 637,555
13,500 MGIC Investment Corp. 614,250
16,600 National Financial Services, Inc. 545,725
5,300 Providian Corp. 477,000
------------
2,513,405
------------
MANUFACTURING 4.0%
13,700 Gentex Corp.<F1> 344,212
10,800 Harley-Davidson, Inc. 415,800
9,800 Millipore Corp. 738,675
9,600 Tyco International Ltd. 454,800
6,000 Waters Corp.<F1> 748,875
------------
2,702,362
------------
MEDIA 2.8%
6,300 Clear Channel
Communications, Inc.<F1> 472,500
6,200 Hispanic Broadcasting Corp.<F1> 205,375
10,050 Infinity Broadcasting Corp.<F1> 366,197
4,600 McGraw-Hill, Inc. 248,400
14,000 SFX Entertainment, Inc.<F1> 634,375
------------
1,926,847
------------
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--------------------------------------------------------------------------------
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
MEDICAL 1.7%
10,800 Amgen, Inc.<F1> $ 758,700
4,000 Johnson & Johnson 407,500
------------
1,166,200
------------
OFFICE EQUIPMENT 0.5%
12,500 Miller (Herman), Inc. 323,438
------------
OIL AND GAS 5.9%
10,300 Apache Corp. 605,769
12,100 El Paso Energy Corp. 616,344
19,800 Kinder Morgan, Inc. 684,338
16,200 Nabors Industries, Inc. 673,313
48,800 Ocean Energy, Inc. 692,350
20,900 Santa Fe International Corp. 730,194
------------
4,002,308
------------
RESTAURANTS 1.4%
15,800 Brinker International, Inc.<F1> 462,150
13,700 Starbucks Corp. 523,169
------------
985,319
------------
RETAIL 5.2%
18,866 99 Cents Only Stores<F1> 752,282
9,200 Bed, Bath and Beyond, Inc. 333,500
8,300 Costco Wholesale Corp.<F1> 273,900
8,250 Dollar Tree Stores, Inc.<F1> 326,391
11,300 Home Depot, Inc. 564,294
5,300 Kohl's Corp.<F1> 294,813
8,400 Linens 'n Things, Inc.<F1> 227,850
5,100 Target Corp. 295,800
8,100 Wal-Mart Stores, Inc. 466,763
------------
3,535,593
------------
Number
of Shares Value
--------- -----
SEMICONDUCTORS 6.3%
3,300 Altera Corp.<F1> $ 336,394
14,400 Intel Corp. 1,925,100
4,900 Lam Research Corp.<F1> 183,750
4,400 Linear Technology Corp. 281,325
10,000 Texas Instruments, Inc. 686,875
11,600 Vitesse Semiconductor Corp.<F1> 853,325
------------
4,266,769
------------
TELECOMMUNICATIONS 6.8%
10,200 ADC Telecommunications, Inc.<F1> 855,525
9,600 BellSouth Corp. 409,200
10,000 Lucent Technologies, Inc. 592,500
9,200 Nokia Corp. ADR 459,425
7,100 Nortel Networks Corp. 484,575
10,000 Scientific-Atlanta, Inc. 745,000
16,800 West Teleservices Corp. 425,250
13,950 WorldCom, Inc.<F1> 639,956
------------
4,611,431
------------
Total Common Stock
(cost $48,342,046) 64,052,656
------------
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--------------------------------------------------------------------------------
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Principal
Amount Value
--------- -----
CONVERTIBLE BONDS 1.3%
$ 360,000 American Tower CVT,
6.25%, 10/15/09 $ 664,650
208,000 Lamar Advertising Co.,
5.25%, 9/15/06 232,960
------------
Total Convertible Bonds
(cost $569,423) 897,610
------------
SHORT-TERM INVESTMENT 5.4%
3,674,517 UMB Bank, n.a., Money Market
Fiduciary, Demand Deposit, 4.27%
(cost $3,674,517) 3,674,517
------------
Total Investments 100.8%
(cost $52,585,986) 68,624,783
Liabilities less
Other Assets (0.8)% (520,843)
------------
Net Assets 100.0% $68,103,940
============
<F1>Non-income producing security
See notes to financial statements.
<PAGE>
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AQUINAS FUNDS
--------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
COMMON STOCKS 58.0%
AEROSPACE 0.3%
1,200 Northrop Grumman Corp. $ 79,500
------------
AIRLINES 0.4%
2,100 Delta Airlines, Inc. 106,181
------------
ALUMINUM PRODUCTS 0.4%
3,400 Alcoa, Inc. 98,600
------------
AUTOMOTIVE AND RELATED
INDUSTRIES 1.4%
3,100 Dana Corp. 65,681
1,700 Ford Motor Co. 73,100
3,600 General Motors Corp. 209,025
223 Visteon, Corp.<F1> 2,699
------------
350,505
------------
BANKING 3.7%
3,700 Bank of America Corp. 159,100
7,600 Bank of New York Co., Inc. 353,400
1,500 Charter One Financial, Inc. 34,500
700 Morgan (J.P.) & Co., Inc. 77,087
1,900 PNC Bank Corp. 89,062
6,000 Union Planters Corp. 167,625
------------
880,774
------------
BIOTECHNOLOGY 0.2%
300 Qiagen N.V. 52,200
------------
BUILDING MATERIALS 0.3%
4,800 Armstrong Holdings, Inc. 73,500
------------
BUSINESS SERVICES 2.8%
4,250 Concord EFS, Inc.<F1> 110,500
2,300 CSG Systems International, Inc.<F1> 128,944
2,000 Fiserv, Inc.<F1> 86,500
Number
of Shares Value
--------- -----
BUSINESS SERVICES 2.8% (CONT'D.)
2,100 Iron Mountain, Inc.<F1> $ 71,400
1,700 Maximus, Inc.<F1> 37,612
2,317 NOVA Corp.<F1> 64,731
3,559 Paychex, Inc. 149,478
------------
649,165
------------
CHEMICALS 0.4%
2,600 B. F. Goodrich Co. 88,562
------------
COMPUTER PRODUCTS 1.1%
4,900 Cabletron Systems, Inc.<F1> 123,725
1,200 International Business
Machines Corp. 131,475
------------
255,200
------------
COMPUTER SERVICES 0.9%
2,000 Affiliated Computer Services, Inc.<F1> 66,125
1,100 The Bisys Group, Inc. 67,650
2,600 Sungard Data Systems, Inc.<F1> 80,600
------------
214,375
------------
COMPUTER SOFTWARE 0.7%
2,100 Computer Associates
International, Inc. 107,494
500 Mercury Interactive Corp.<F1> 48,375
------------
155,869
------------
CONSUMER PRODUCTS 2.5%
1,500 Brown-Forman Corp., Class B 80,625
4,600 Brunswick, Corp. 76,188
1,600 Eastman Kodak Co. 95,200
3,400 Fortune Brands, Inc. 78,413
7,000 Pactiv Corp.<F1> 55,125
4,600 Whirlpool Corp. 214,475
------------
600,026
------------
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AQUINAS FUNDS
--------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
DIVERSIFIED MANUFACTURING
OPERATIONS 0.4%
1,300 Perkinelmer, Inc. $ 85,962
1,400 Tenneco Automotive, Inc. 7,350
------------
93,312
------------
DRUGS 2.1%
2,800 Biovail Corp. International<F1> 155,225
1,825 Jones Pharma, Inc. 72,886
3,450 King Pharmaceuticals, Inc. 151,369
1,400 QLT, Inc. 108,238
------------
487,718
------------
ELECTRIC UTILITIES 1.8%
2,700 American Electric Power Co. 79,988
2,700 DTE Energy Co. 82,519
1,586 Duke Energy Corp. 89,411
2,700 New Century Energies, Inc. 81,000
2,600 Public Service Enterprise Group, Inc. 90,025
------------
422,943
------------
ELECTRICAL PRODUCTS 1.7%
1,990 Amphenol Corp., Class A<F1> 131,713
2,000 ANTEC Corp.<F1> 83,125
1,300 Conexant Systems, Inc.<F1> 63,212
6,400 Thomas and Betts Corp. 122,400
------------
400,450
------------
ELECTRONICS 0.6%
2,000 AVX Corp. 45,875
3,500 Hubbell, Inc., Class B 89,250
------------
135,125
------------
ENTERTAINMENT 0.1%
800 International Speedway Corp.,
Class A 33,100
------------
Number
of Shares Value
--------- -----
FINANCIAL SERVICES 4.2%
2,700 A.G. Edwards, Inc. $105,300
4,800 AmeriCredit Corp.<F1> 81,600
3,600 Federal National Mortgage Assn. 187,875
4,900 KeyCorp 86,362
100 Knight Trading Group, Inc. 2,981
5,988 Metris Cos., Inc. 150,449
3,300 Morgan Stanley Dean Witter and Co. 274,725
2,700 Wells Fargo & Co. 104,625
------------
993,917
------------
FOOD 0.7%
1,500 Hershey Foods Corp. 72,750
4,400 Supervalu, Inc. 83,875
------------
156,625
------------
FORESTRY 0.4%
4,000 Georgia-Pacific Corp.
(Timber Group) 86,500
------------
HEALTH CARE PRODUCTS 0.5%
2,900 Mallinckrodt, Inc. 125,969
------------
HEALTH CARE SERVICES 0.8%
8,200 Health Management Association, Inc. 107,113
2,800 Tenet Healthcare Corp. 75,600
------------
182,713
------------
INSURANCE 3.0%
3,300 American General Corp. 201,300
1,575 American International Group, Inc. 185,063
2,800 MGIC Investment Corp. 127,400
2,600 National Financial Services, Inc. 85,475
1,100 Providian Corp. 99,000
------------
698,238
------------
MACHINERY AND EQUIPMENT 0.2%
1,600 Caterpillar, Inc. 54,200
------------
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AQUINAS FUNDS
--------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
MANUFACTURING 2.2%
2,200 Gentex Corp.<F1> $ 55,275
2,100 Illinois Tool Works, Inc. 119,700
2,300 Ingersoll-Rand Co. 92,575
1,400 Millipore Corp. 105,525
1,200 Waters Corp.<F1> 149,775
------------
522,850
------------
MEDIA 0.9%
400 Clear Channel
Communications, Inc.<F1> 30,000
1,000 Hispanic Broadcasting Corp.<F1> 33,125
1,435 Infinity Broadcasting Corp.<F1> 52,288
1,900 SFX Entertainment, Inc.<F1> 86,094
------------
201,507
------------
NATURAL GAS UTILITIES 1.0%
3,100 El Paso Energy Corp. 157,906
2,600 NICOR, Inc. 84,825
------------
242,731
------------
OFFICE EQUIPMENT 1.6%
4,500 Avery Dennison Corp. 302,064
1,800 Miller (Herman), Inc. 46,575
1,900 Xerox Corp. 39,425
------------
388,064
------------
OIL AND GAS 6.2%
1,500 Apache Corp. 88,219
4,400 Conoco Inc., Class B 108,075
1,856 Exxon Mobil Corp. 145,696
1,800 Kerr-McGee Corp. 106,087
3,000 KeySpan Corp. 92,250
4,400 Kinder Morgan, Inc. 152,075
3,300 Nabors Industries, Inc. 137,156
7,100 Ocean Energy, Inc. 100,731
4,500 Repsol SA-ADR 89,156
1,300 Royal Dutch Petroleum Co. 80,031
3,000 Santa Fe International Group 104,813
Number
of Shares Value
--------- -----
OIL AND GAS 6.2% (CONT'D.)
6,800 Ultramar Diamond Shamrock Corp. $ 168,725
3,800 USX-Marathon Group 95,238
------------
1,468,252
------------
PAPER AND PAPER PRODUCTS 2.1%
2,100 Bowater, Inc. 92,662
2,500 Georgia-Pacific Group, Inc. 65,625
4,500 Kimberly-Clark Corp. 258,187
3,100 Westvaco Corp. 76,919
------------
493,393
------------
PRINTING AND PUBLISHING 0.7%
7,100 Deluxe Corp. 167,294
------------
REAL ESTATE 0.3%
13,000 HRPT Properties Trust 79,625
------------
RESTAURANTS 0.3%
2,400 Brinker International, Inc.<F1> 70,200
------------
RETAIL 3.6%
2,666 99 Cents Only Stores<F1> 106,307
1,500 Bed, Bath and Beyond, Inc. 54,375
1,300 BJ's Wholesale Club, Inc.<F1> 42,900
4,100 Costco Wholesale Corp.<F1> 135,300
1,200 Dollar Tree Stores, Inc.<F1> 47,475
1,100 Linens 'n Things, Inc.<F1> 29,837
2,100 The May Department Stores Co. 50,400
5,000 Penney (J.C.) Co., Inc. 92,187
3,300 Safeway, Inc.<F1> 148,912
2,400 Target Corp. 139,200
------------
846,893
------------
SEMICONDUCTORS 1.8%
2,200 Intel Corp. 294,112
1,800 Vitesse Semiconductor Corp.<F1> 132,413
------------
426,525
------------
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AQUINAS FUNDS
--------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -----
STEEL AND IRON 0.6%
7,500 USX-U.S. Steel Group, Inc. $ 139,219
------------
TELECOMMUNICATIONS 3.8%
1,600 ADC Telecommunications, Inc.<F1> 134,200
1,700 Bell Atlantic Corp. 86,381
4,400 GTE Corp. 273,900
1,842 SBC Communications, Inc. 79,666
2,100 Scientific-Atlanta, Inc. 156,450
1,100 U S WEST, Inc. 94,325
2,500 West Teleservices Corp. 63,281
------------
888,203
------------
TEXTILES 0.3%
2,000 Springs Industries, Inc., Class A 64,000
------------
TOBACCO PRODUCTS 0.6%
3,300 R.J. Reynolds Tobacco
Holdings, Inc. 92,194
3,900 UST, Inc. 57,281
------------
149,475
------------
TRANSPORTATION 0.4%
2,700 GATX Corp. 91,800
------------
Total Common Stocks
(cost $13,150,901) 13,715,298
------------
Principal
Amount Value
--------- -----
CONVERTIBLE BOND 0.2%
$ 42,000 Lamar Advertising Co.,
5.25%, 9/15/06
(cost $42,000) $ 47,040
------------
FIXED INCOME BONDS 40.0%
ASSET-BACKED SECURITIES 7.2%
123,263 Amresco Residential Securities
Mortgage Loan Trust,
7.615%, 3/25/27 120,081
50,000 AT&T Universal Card Master Trust,
5.95%, 10/17/02 49,858
70,000 AT&T Universal Card Master Trust,
6.27%, 9/17/03 70,021
25,000 Carco Auto Loan Master Trust,
6.18%, 11/17/03 24,982
104,513 Chase Commercial Mortgage Securities
Corp., 7.60%, 12/18/05 105,157
25,000 Citibank Credit Card Master Trust,
6.35%, 8/15/02 24,978
45,000 Citibank Credit Card Master Trust,
6.18%, 9/16/02 44,988
5,000 Discover Card Master Trust,
6.48%, 10/16/04 5,020
55,000 First Chicago Master Trust II,
6.72%, 10/15/02 55,017
40,000 First USA Credit Card Master Trust,
6.87%, 8/15/03 40,120
60,000 First USA Credit Card Master Trust,
6.81%, 11/15/03 60,016
30,000 First USA Credit Card Master Trust,
6.23%, 4/19/04 30,004
70,000 Fleet Credit Card Master Trust,
6.17%, 7/15/03 70,004
<PAGE>
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AQUINAS FUNDS
--------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Principal
Amount Value
--------- -----
ASSET-BACKED SECURITIES 7.2% (CONT'D.)
$132,168 GMAC Commercial Mortgage
Securities, Inc., 6.411%, 11/15/07 $ 127,674
30,027 IMPAC CMB Trust,
6.868%, 7/25/28 30,012
60,000 MBNA Master Credit Card Trust,
6.723%, 3/15/03 60,035
50,000 MBNA Master Credit Card Trust,
7.35%, 7/16/07 50,387
5,000 Mellon Bank Credit Card Master Trust,
6.32%, 4/15/03 5,002
115,591 Merrill Lynch Mortgage Investors, Inc.,
6.95%, 6/18/29 114,678
181,686 Mortgage Capital Funding, Inc.,
6.758%, 2/20/04 179,095
95,000 Norwest Asset Securities Corp.,
6.00%, 1/25/29 75,574
61,229 Olympic Auto Trust,
6.625%, 12/15/02 61,181
125,000 Providian Master Trust, 97-4A,
6.25%, 6/15/07 122,727
30,000 Prudential Securities Secured
Financing Corp.,
6.48%, 1/15/09 28,122
60,000 Residential Accredit Loans, Inc.,
6.75%, 6/25/28 52,130
20,000 Residential Accredit Loans, Inc.,
6.50%, 5/25/29 16,492
73,491 World Omni Auto Lease
Securitization, 6.18%, 11/25/03 73,448
------------
1,696,803
------------
CORPORATE BONDS 26.0%
140,000 American Airlines,
7.024%, 10/15/09 133,004
50,000 Associates Corp. of North America,
5.80%, 4/20/04 46,858
Principal
Amount Value
--------- -----
CORPORATE BONDS 26.0% (CONT'D.)
$225,000 Associates Corp. of North America,
7.75%, 2/15/05 $224,260
50,000 Bank of America Corp.,
6.625%, 8/1/07 47,013
120,000 Bear Stearns Corp.,
6.75%, 12/15/07 109,649
150,000 Bellsouth Capital Funding,
6.04%, 11/15/26 147,375
100,000 Caterpillar Inc.,
6.625%, 7/15/28 84,522
281,000 Coca-Cola Enterprises, Inc.,
7.00%, 10/1/26 274,177
100,000 Coca-Cola Enterprises, Inc.,
6.75%, 9/15/28 85,945
130,000 Commercial Credit Co.,
7.875%, 2/1/25 133,455
120,000 Compania Telecom Chile,
7.625%, 7/15/06 115,274
50,000 Continental Airlines, Inc.,
8.048%, 11/20/20 49,910
100,000 Corporation Andina de Fomento,
7.10%, 2/1/03 97,623
300,000 Donaldson Lufkin Jenrette Securities
Corp., 5.625%, 2/15/16 295,911
30,000 Daimlerchrysler NA,
7.75%, 6/15/05 30,258
135,000 Edison International, Inc.,
6.875%, 9/15/04 131,154
100,000 E.I. Du Pont De Nemours,
6.00%, 3/6/03 97,580
100,000 El Paso Energy Corp.,
6.75%, 11/15/03 97,952
100,000 EOP Operating LP,
6.375%, 1/15/02 97,648
50,000 First Union Corp.,
6.40%, 4/1/08 45,187
<PAGE>
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AQUINAS FUNDS
--------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Principal
Amount Value
--------- -----
CORPORATE BONDS 26.0% (CONT'D.)
$ 70,000 First Union Corp.,
6.824%, 8/1/26 $ 67,783
245,000 First Union Corp.,
7.50%, 4/15/35 244,454
280,000 Ford Motor Credit Co.,
7.375%, 10/28/09 270,903
150,000 General Motors Acceptance Corp.,
8.875%, 6/1/10 159,611
100,000 Global Marine, Inc.,
7.125%, 9/1/07 94,916
225,000 Grand Metropolitan Investment PLC,
7.45%, 4/15/35 225,389
140,000 Heller Financial, Inc.,
6.50%, 7/22/02 137,250
60,000 Heller Financial, Inc.,
7.875%, 5/15/03 59,818
220,000 Household Finance Corp.,
7.20%, 7/15/06 212,089
250,000 Hydro-Quebec,
8.05%, 7/7/24 264,450
300,000 Lehman Brothers Hldg., Inc.,
8.80%, 3/1/15 317,055
250,000 Motorola, Inc.,
6.50%, 9/1/25 241,060
150,000 NationsBank Corp.,
8.57%, 11/15/24 160,836
210,000 New Jersey Bell Telephone Co.,
7.85%, 11/15/29 206,516
60,000 Norfolk Southern Corp.,
6.95%, 5/1/02 59,514
250,000 Penney (J.C.) & Co., Inc.,
7.40%, 4/1/37 226,035
50,000 Phillips Petroleum Company,
8.50%, 5/25/05 51,743
Principal
Amount Value
--------- -----
CORPORATE BONDS 26.0% (CONT'D.)
$155,000 Service Corp. International,
6.00%, 12/15/05 $ 83,700
50,000 Sprint Capital Corp.,
6.90%, 5/1/19 44,380
250,000 Transamerica Financial Corp.,
7.25%, 8/15/02 249,330
100,000 Tyco International Group,
6.25%, 6/15/03 95,186
250,000 WMX Technologies, Inc.,
7.10%, 8/1/26 234,965
35,000 Wal-Mart Stores,
7.55%, 2/15/30 35,767
50,000 WorldCom, Inc.,
7.75%, 4/1/07 49,992
------------
6,137,497
------------
U.S. GOVERNMENT AGENCIES 5.2%
65,000 FHLMC Gold 15 Year TBA,
8.00%, 7/25/15 65,650
101,957 FHLMC, Pool 555316,
9.00%, 6/01/19 105,685
220,000 FNCL 30 Year TBA,
8.00%, 7/15/30 220,755
80,000 FNCL 30 Year TBA,
8.00%, 7/15/30 80,300
150,000 FNCL 30 Year TBA,
6.50%, 7/15/30 141,280
90,000 FNCL 30 Year TBA,
6.50%, 7/15/30 84,796
110,000 FNMA, 7.25%, 1/15/10 110,898
54,685 FNMA, #523849,
10.00%, 11/1/13 57,555
69,687 FNMA, #523850,
10.50%, 10/1/14 74,013
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AQUINAS FUNDS
--------------------------------------------------------------------------------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 2000 (UNAUDITED)
Principal
Amount Value
--------- -----
U.S. GOVERNMENT AGENCIES 5.2% (CONT'D.)
$ 3,035 GNMA, Pool 031096,
9.50%, 6/15/09 $ 3,155
59,494 GNMA, Pool 780904,
9.50%, 7/15/18 61,892
80,000 GNMA 1998-22 PD,
6.50%, 9/20/28 72,308
150,000 Tennessee Valley Authority,
6.235%, 7/15/45 148,938
------------
1,227,225
------------
U.S. TREASURY OBLIGATIONS 1.6%
225,000 U.S. Treasury Bond,
8.875%, 8/15/17 286,171
40,000 U.S. Treasury Note,
7.00%, 7/15/06 41,437
180,000 U.S. Treasury Strips, 11/15/21 48,625
------------
376,233
------------
Total Fixed Income Bonds
(cost $9,735,193) $9,437,758
------------
Principal
Amount Value
--------- -----
SHORT-TERM INVESTMENT 8.6%
$2,042,182 UMB Bank, n.a., Money Market
Fiduciary, Demand Deposit, 4.83%
(cost $2,042,182) $ 2,042,182
------------
Total Investments 106.8%
(cost $24,970,276) 25,242,278
Liabilities less
Other Assets (6.8)% (1,619,335)
------------
Net Assets 100.0% $23,622,943
============
<F1>Non-income producing security
See notes to financial statements.
<PAGE>
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AQUINAS FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
FIXED EQUITY EQUITY
INCOME INCOME GROWTH BALANCED
FUND FUND FUND FUND
---- ---- ---- ----
ASSETS:
Investments at value
(cost $43,678,487,
$52,957,189, $52,585,986
and $24,970,276,
respectively) $42,388,147 $49,975,317 $68,624,783 $25,242,278
Interest and dividends
receivable 686,537 111,256 32,343 179,404
Receivable for
securities sold 636,662 - 125,675 392,460
Capital shares receivable 187,141 263,838 16,260 168,508
Prepaid expenses 14,088 16,089 15,204 6,436
Cash - - - 65,992
----------- ----------- ----------- -----------
Total Assets 43,912,575 50,366,500 68,814,265 26,055,078
----------- ----------- ----------- -----------
LIABILITIES:
Payable for securities
purchased 4,094,413 521,019 622,901 1,220,351
Accrued expenses 227,807 269,999 32,442 188,203
Capital shares payable 48,383 2,464 - 1,003,616
Accrued investment
advisory fee 18,354 42,095 54,982 19,965
----------- ----------- ----------- -----------
Total Liabilities 4,388,957 835,577 710,325 2,432,135
----------- ----------- ----------- -----------
NET ASSETS $39,523,618 $49,530,923 $68,103,940 $23,622,943
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Capital stock $ 417 $473 $326 $227
Paid-in capital in
excess of par 41,612,731 50,708,665 45,088,013 21,799,916
Undistributed net
investment income
(loss) 12,386 (40,343) - (4,424)
Undistributed net
realized gain (loss)
on investments (811,576) 1,844,000 6,976,804 1,555,222
Net unrealized
appreciation
(depreciation)
on investments (1,290,340) (2,981,872) 16,038,797 272,002
----------- ----------- ----------- -----------
NET ASSETS $39,523,618 $49,530,923 $68,103,940 $23,622,943
=========== =========== =========== ===========
CAPITAL STOCK,
$.0001 PAR VALUE:
Authorized 125,000,000 125,000,000 125,000,000 125,000,000
Issued and outstanding 4,172,746 4,730,246 3,264,200 2,269,086
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $9.47 $10.47 $20.86 $10.41
====== ====== ====== ======
See notes to financial statements.
<PAGE>
(LOGO)
AQUINAS FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
FIXED EQUITY EQUITY
INCOME INCOME GROWTH BALANCED
FUND FUND FUND FUND
---- ---- ---- ----
INVESTMENT INCOME:
Interest $1,424,375 $44,072 $100,857 $375,215
Dividends - 825,162 96,456 143,934
----------- ----------- ----------- -----------
1,424,375 869,234 197,313 519,149
EXPENSES:
Investment advisory fees 120,259 263,931 320,110 122,690
Administration and fund
accounting fees 32,678 43,031 52,190 20,003
Shareholder servicing fees 21,342 23,920 25,609 18,211
Federal and state
registration fees 8,305 9,104 9,246 4,226
Legal fees 5,772 7,390 8,858 3,509
Pricing fees 5,320 1,665 2,461 6,962
Reports to shareholders 4,146 5,551 5,798 2,123
Audit fees 4,029 4,945 6,335 2,341
Custody fees 3,083 3,309 6,048 6,042
Insurance 255 430 260 191
Other 2,684 3,542 4,097 1,573
----------- ----------- ----------- -----------
Total expenses
before waiver 207,873 366,818 441,012 187,871
Waiver of fees (7,441) - - (3,836)
----------- ----------- ----------- -----------
Net Expenses 200,432 366,818 441,012 184,035
----------- ----------- ----------- -----------
NET INVESTMENT
INCOME (LOSS) 1,223,943 502,416 (243,699) 335,114
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss)
on investments (331,102) 1,157,182 5,642,199 1,151,502
Change in unrealized
appreciation/
depreciation on
investments 347,365 (5,519,154) (969,298) (1,117,571)
----------- ----------- ----------- -----------
Net Gain (Loss) on
Investments 16,263 (4,361,972) 4,672,901 33,931
----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $1,240,206 $(3,859,556) $4,429,202 $369,045
=========== =========== =========== ===========
See notes to financial statements.
(LOGO)
AQUINAS FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FIXED INCOME EQUITY INCOME EQUITY GROWTH BALANCED
FUND FUND FUND FUND
---- ---- ---- ----
Six Months Six Months Six Months Six Months
ended Year ended Year ended Year ended Year
June 30, ended June 30, ended June 30, ended June 30, ended
2000 Dec. 31, 2000 Dec. 31, 2000 Dec. 31, 2000 Dec. 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income (loss) $1,223,943 $2,355,930 $502,416 $965,239 $(243,699) $(417,323) $335,114 $590,540
Net realized gain
(loss) on
investments (331,102) (490,218) 1,157,182 7,436,100 5,642,199 7,867,504 1,151,502 2,339,367
Change in unrealized
appreciation/
depreciation on
investments 347,365 (2,710,555) (5,519,154) (7,493,044) (969,298) 4,008,588 (1,117,571) (1,982,162)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations 1,240,206 (844,843) (3,859,556) 908,295 4,429,202 11,458,769 369,045 947,745
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS OF:
Net investment
income (1,234,877) (2,320,727) (512,014) (906,850) - - (338,393) (571,018)
Net realized gains - (14,531) - (7,904,553) - (6,005,483) - (2,401,905)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total
Distributions (1,234,877) (2,335,258) (512,014) (8,811,403) - (6,005,483) (338,393) (2,972,923)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 2,435,624 8,325,477 3,514,049 5,379,144 28,394,118 11,201,911 563,839 1,579,505
Shares issued to
holders in
reinvestment of
distributions 1,142,895 2,174,398 483,212 8,445,685 - 5,703,517 335,548 2,948,584
Shares redeemed (6,214,101) (8,031,000) (7,908,171) (12,985,082) (24,586,428) (9,891,190) (2,242,783) (4,656,525)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Increase
(Decrease) (2,635,582) 2,468,875 (3,910,910) 839,747 3,807,690 7,014,238 (1,343,396) (128,436)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS (2,630,253) (711,226) (8,282,480) (7,063,361) 8,236,892 12,467,524 (1,312,744) (2,153,614)
NET ASSETS:
Beginning of period 42,153,871 42,865,097 57,813,403 64,876,764 59,867,048 47,399,524 24,935,687 27,089,301
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
End of period $39,523,618 $42,153,871 $49,530,923 $57,813,403 $68,103,940 $59,867,048 $23,622,943 $24,935,687
=========== =========== =========== =========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
(LOGO)
AQUINAS FUNDS
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FIXED INCOME FUND EQUITY INCOME FUND
--------------------------------------------------- ---------------------------------------------------
For the Six For the Six
Months Ended Months Ended
June 30, For the Years Ended December 31, June 30, For the Years Ended December 31,
2000 --------------------------------------- 2000 ---------------------------------------
(Unaudited) 1999 1998 1997 1996 1995 (Unaudited) 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.47 $10.18 $10.17 $ 9.90 $10.17 $ 9.24 $11.34 $13.21 $14.89 $13.26 $11.83 $ 9.39
Income (loss) from
Investment Operations:
Net investment income 0.29 0.53 0.54 0.55 0.54 0.54 0.10 0.21 0.23 0.26 0.23 0.28
Net realized and
unrealized gains
(losses) on investments - (0.71) 0.17 0.27 (0.27) 0.93 (0.87) (0.09) 0.57 3.40 2.18 3.03
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total from Investment
Operations 0.29 (0.18) 0.71 0.82 0.27 1.47 (0.77) 0.12 0.80 3.66 2.41 3.31
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
Dividends from net
investment income (0.29) (0.53) (0.54) (0.55) (0.54) (0.54) (0.10) (0.20) (0.23) (0.26) (0.23) (0.28)
Distributions from net
realized gains - - (0.16) - - - - (1.79) (2.25) (1.77) (0.75) (0.59)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total Distributions (0.29) (0.53) (0.70) (0.55) (0.54) (0.54) (0.10) (1.99) (2.48) (2.03) (0.98) (0.87)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net Asset Value,
End of Period $9.47 $ 9.47 $10.18 $10.17 $ 9.90 $10.17 $10.47 $11.34 $13.21 $14.89 $13.26 $11.83
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return<F1> 3.14% (1.86)% 7.17% 8.54% 2.83% 16.26% (6.75)% 1.12% 5.50% 27.85% 20.43% 35.62%
Supplemental Data
and Ratios:
Net assets, end of
period (in thousands)$39,524 $42,154 $42,865 $40,699 $37,229 $35,617 $49,531 $57,813 $64,877 $73,594 $54,184 $42,102
Ratio to Average
Net Assets of:<F2>
Expenses, net of waivers
and reimbursements 1.00% 1.00% 1.00% 0.99% 1.00% 0.98% 1.39% 1.38% 1.36% 1.37% 1.40% 1.37%
Expenses, before waivers
and reimbursements 1.04% 1.02% 1.03% 1.05% 1.03% 0.98% 1.39% 1.38% 1.36% 1.37% 1.40% 1.37%
Net investment income,
net of waivers and
reimbursements 6.11% 5.37% 5.27% 5.54% 5.44% 5.46% 1.90% 1.56% 1.49% 1.74% 1.79% 2.47%
Net investment income,
before waivers and
reimbursements 6.07% 5.35% 5.24% 5.48% 5.41% 5.46% 1.90% 1.56% 1.49% 1.74% 1.79% 2.47%
Portfolio turnover rate<F1> 53% 131% 120% 102% 169% 126% 16% 100% 64% 42% 32% 40%
</TABLE>
<F1> Not annualized for the period from January 1, 2000 through June 30, 2000.
<F2> Annualized for the period from January 1, 2000 through June 30, 2000.
See notes to financial statements.
<PAGE>
(LOGO)
AQUINAS FUNDS
FINANCIAL HIGHLIGHTS (CONT'D.)
<TABLE>
<CAPTION>
EQUITY GROWTH FUND BALANCED FUND
--------------------------------------------------- ---------------------------------------------------
For the Six For the Six
Months Ended Months Ended
June 30, For the Years Ended December 31, June 30, For the Years Ended December 31,
2000 --------------------------------------- 2000 ---------------------------------------
(Unaudited) 1999 1998 1997 1996 1995 (Unaudited) 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $19.48 $17.57 $15.12 $13.45 $12.13 $ 9.31 $10.40 $11.34 $11.58 $11.53 $11.03 $ 9.43
Income from Investment
Operations:
Net investment
income (loss) (0.07) (0.14) (0.10) (0.06) (0.06) (0.01) 0.14 0.27 0.28 0.31 0.26 0.32
Net realized and
unrealized gains
on investments 1.45 4.20 3.40 3.93 2.84 2.83 0.01 0.17 0.68 1.95 1.41 1.84
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total from Investment
Operations 1.38 4.06 3.30 3.87 2.78 2.82 0.15 0.44 0.96 2.26 1.67 2.16
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
Dividends from net
investment income - - - - - - (0.14) (0.26) (0.28) (0.30) (0.26) (0.33)
Distributions from net
realized gains - (2.15) (0.85) (2.20) (1.46) - - (1.12) (0.92) (1.91) (0.91) (0.23)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total Distributions - (2.15) (0.85) (2.20) (1.46) - (0.14) (1.38) (1.20) (2.21) (1.17) (0.56)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net Asset Value,
End of Period $20.86 $19.48 $17.57 $15.12 $13.45 $12.13 $10.41 $10.40 $11.34 $11.58 $11.53 $11.03
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return<F1> 7.08% 23.12% 21.95% 28.97% 22.90% 30.29% 1.47% 4.06% 8.46% 19.91% 15.29% 23.14%
Supplemental Data and Ratios:
Net assets, end of period
(in thousands) $68,104 $59,867 $47,400 $35,990 $22,593 $15,912 $23,623 $24,936 $27,089 $29,164 $29,670 $26,779
Ratio to Average Net
Assets of:<F2>
Expenses, net of waivers
and reimbursements 1.38% 1.41% 1.42% 1.49% 1.50% 1.50% 1.50% 1.50% 1.44% 1.45% 1.44% 1.46%
Expenses, before waivers
and reimbursements 1.38% 1.41% 1.42% 1.49% 1.54% 1.61% 1.53% 1.53% 1.49% 1.52% 1.49% 1.46%
Net investment income
(loss), net of
waivers and
reimbursements (0.76)% (0.83)% (0.71)% (0.66)% (0.55)% (0.10)% 2.73% 2.39% 2.38% 2.44% 2.23% 2.93%
Net investment income
(loss), before
waivers and
reimbursements (0.76)% (0.83)% (0.71)% (0.66)% (0.59)% (0.21)% 2.70% 2.36% 2.33% 2.37% 2.18% 2.93%
Portfolio turnover rate<F1> 53% 99% 96% 104% 112% 102% 59% 118% 102% 94% 111% 118%
</TABLE>
<F1> Not annualized for the period from January 1, 2000 through June 30, 2000.
<F2> Annualized for the period from January 1, 2000 through June 30, 2000.
See notes to financial statements.
<PAGE>
(LOGO)
AQUINAS FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (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 Advisors, Inc. (the "Advisor") and commenced operations on January 3,
1994.
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' Advisor
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 Advisor 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 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.
<PAGE>
(LOGO)
AQUINAS FUNDS
--------------------------------------------------------------------------------
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. 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 Advisor, 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 Advisor 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 Advisor 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 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, 2000, expenses of $7,441 and
$3,836 were waived by the Advisor in the Fixed Income and Balanced Funds,
respectively.
<PAGE>
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AQUINAS FUNDS
--------------------------------------------------------------------------------
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Funds for the six months ended June 30, 2000,
were as follows:
Fixed Equity Equity
Income Income Growth Balanced
Fund Fund Fund Fund
---- ---- ---- ----
Shares sold 257,807 323,317 1,408,063 53,821
Shares issued to
holders in
reinvestment of
distributions 121,146 44,871 - 31,857
Shares redeemed (655,688) (736,554) (1,217,230) (215,305)
----------- ----------- ----------- -----------
Net Increase
(Decrease) (276,735) (368,366) 190,833 (129,627)
=========== =========== =========== ===========
Transactions in shares of the Funds for the year ended December 31, 1999,
were as follows:
Fixed Equity Equity
Income Income Growth Balanced
Fund Fund Fund Fund
---- ---- ---- ----
Shares sold 840,507 408,800 619,830 139,695
Shares issued to
holders in
reinvestment of
distributions 223,052 745,394 296,132 282,799
Shares redeemed (822,874) (965,668) (540,768) (412,076)
----------- ----------- ----------- -----------
Net Increase 240,685 188,526 375,194 10,418
=========== =========== =========== ===========
5.INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the six months ended June 30, 2000, were as
follows:
Fixed Equity Equity
Income Income Growth Balanced
Fund Fund Fund Fund
---- ---- ---- ----
Purchases
U.S. Government $ 3,322,832 - - $949,291
Other 17,488,896 $7,924,885 $35,306,909 12,883,666
Sales
U.S. Government 5,021,256 - - 1,769,701
Other 15,922,605 9,030,719 32,463,626 12,023,246
At June 30, 2000, gross unrealized appreciation and depreciation on
investments, based on cost for federal income tax purposes of $43,726,500,
$52,974,254, $52,820,545 and $25,023,922 were as follows:
Fixed Equity Equity
Income Income Growth Balanced
Fund Fund Fund Fund
---- ---- ---- ----
Appreciation $ 135,450 $ 5,480,660 $17,720,355 $ 2,165,144
(Depreciation) (1,473,803) (8,479,597) (1,916,117) (1,946,788)
----------- ----------- ----------- -----------
Net Appreciation
(Depreciation)
on Investments $(1,338,353) $(2,998,937) $15,804,238 $218,356
=========== =========== =========== ===========
<PAGE>
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<PAGE>
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<PAGE>
(LOGO)
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.
