<PAGE> 1
FAIRPORT FUNDS
Charting A Course You Can Trust(SM)
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
* Fairport Midwest Growth Fund
* Fairport Growth and Income Fund
* Fairport Government Securities Fund
April 30, 1997
Advised by
ROULSTON & COMPANY, INC.
<PAGE> 2
FAIRPORT FUNDS SEMI-ANNUAL REPORT TO SHAREHOLDERS
- -------------------------------------------------------------------------------
May 28, 1997
Dear Shareholder:
We are pleased to issue the financial report on the Fairport Funds for the six
months ended April 30, 1997.
The Fairport Midwest Growth Fund gained 8.92% during the period, while the
Fairport Growth and Income Fund gained 14.06%. These returns were earned in a
period when the market, as measured by the Standard & Poor's 500 Stock Index,
gained 14.71%. The Fairport Government Securities Fund gained 0.85% during the
period while the Merrill Lynch Treasury Bond Index increased by 1.78%.
During the six months ended April 30, 1997, the economy grew strongly across a
broad front. The anticipated continued growth in capital spending and exports
was augmented by stronger than expected consumer demand and construction
spending.
While some slowing of this fast pace is evident, the pace of economic activity
is vigorous and proceeding without any measurable signs of the excesses that
would suggest concern. Corporate profitability and favorable cash flow trends
support our optimistic view of the economy and financial markets in the months
ahead.
In the commentary that follows on each of the Funds, you will note a common
theme that has long been a hallmark of our investment management. Research is
the cornerstone of our investment process. Our research efforts for the Fairport
Funds continue to give us confidence in the future of the economy and the
portfolios we manage on your behalf.
/s/ Scott D. Roulston /s/ Joseph A. Harrison
Scott D. Roulston Joseph A. Harrison
President Director of Investments
<PAGE> 3
FAIRPORT FUNDS INVESTMENT ADVISER'S REPORT
- --------------------------------------------------------------------------------
FAIRPORT MIDWEST GROWTH FUND
The graph below compares the increase in value of a $10,000 investment in
Fairport Midwest Growth Fund with the performance of the Standard & Poor's 500
Stock and Lipper Growth Fund indices.
FAIRPORT MIDWEST GROWTH FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
[CHART]
AVERAGE ANNUAL TOTAL RETURN*
<TABLE>
<S> <C>
1 Year ....................... 10.97%
Since Inception .............. 17.24%
</TABLE>
* For period ending 4/30/97
<TABLE>
<CAPTION>
Fairport Midwest Lipper Growth Standard & Poor's
Growth Fund Fund Index 500 Stock Index
<S> <C> <C> <C>
7/1/93 $10,000 $10,000 $10,000
7/93 10,200 9,988 9,970
10/93 11,090 10,653 10,480
1/94 11,730 11,088 10,497
4/94 11,847 10,479 10,100
7/94 11,796 10,457 10,482
10/94 12,298 10,871 10,880
1/95 12,222 10,587 10,914
4/95 13,327 11,631 12,019
7/95 14,950 13,127 13,207
10/95 14,532 13,478 13,750
1/96 14,514 14,271 15,127
4/96 16,584 14,989 15,641
7/96 15,785 14,292 15,385
10/96 16,897 16,255 17,047
1/97 18,638 17,301 19,107
4/97 18,404 17,103 19,563
</TABLE>
Past performance is no guarantee of future results.
Fairport Midwest Growth Fund was established to achieve capital appreciation
through the investment in equity securities of companies that are headquartered
in the eight-state area contiguous to the Great Lakes.
While the Fund's objective is capital appreciation, investments are not limited
to growth stocks. We seek opportunities in a broad spectrum of investments from
traditional growth companies to highly cyclical companies.
Investment decisions are driven by intense and continuous fundamental research.
This research focus attempts to uncover a combination of internal and external
change at a company that presents an unusual appreciation potential.
Internal changes that would be significant might include:
* An internal change in management H A strategic decision to change the
business focus of the company or a sector of the company that could include
an acquisition or divestiture
* The development of an important new product or service
* Adoption of new operating methods or systems that could positively impact
profitability and cash flow.
Significant external changes might include:
* A new CEO or other important manager brought in from outside the company
* A structural change such as a consolidation or bankruptcy in an important
customer industry
* A significant change in the competitive environment caused by a new entrant
into the market, a new product introduced by a competitor or a dramatic
change in product pricing or costs
* The development of a new technology that could impact the industry.
While the above lists are far from inclusive, they provide some examples of the
type of changes our research process attempts to identify and analyze.
The continued domestic economic expansion and international economic recovery
should benefit well-positioned Midwest companies in the year ahead. Some risk of
cost increases, particularly labor, places increasing importance on continued
productivity gains. It is an environment in which management skill and
flexibility will be essential. Our research process will continue to focus on
identifying those skills and opportunities.
<PAGE> 4
FAIRPORT FUNDS
- --------------------------------------------------------------------------------
FAIRPORT GROWTH AND INCOME FUND
The graph below compares the increase in value of a $10,000 investment in
Fairport Growth and Income Fund with the performance of the Standard & Poor's
500 Stock and Lipper Growth & Income Fund indices.
FAIRPORT GROWTH AND INCOME FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
[CHART]
AVERAGE ANNUAL TOTAL RETURN*
<TABLE>
<S> <C>
1 Year ....................... 21.33%
Since Inception .............. 15.13%
</TABLE>
* For period ending 4/30/97
<TABLE>
<CAPTION>
Fairport Growth Lipper Growth Standard & Poor's
and Income Fund and Income Fund Index 500 Stock Index
<S> <C> <C> <C>
7/1/93 $10,000 $10,000 $10,000
7/93 10,030 10,054 9,970
10/93 10,398 10,606 10,480
1/94 10,894 11,051 10,862
4/94 10,682 10,478 10,241
7/94 10,900 10,677 10,482
10/94 10,889 10,941 10,880
1/95 10,940 10,778 10,914
4/95 11,746 11,759 12,019
7/95 12,541 12,799 13,207
10/95 12,780 13,125 13,750
1/96 14,075 14,314 15,127
4/96 14,149 14,980 15,641
7/96 13,749 14,540 15,305
10/96 15,051 17,004 17,???
1/97 16,558 17,590
4/97 17,167 17,753
</TABLE>
Past performance is no guarantee of future results.
Fairport Growth and Income Fund was established to achieve capital appreciation
and current income primarily through investment in common stocks or securities
convertible into common stocks.
The investment policy is to invest in a diversified portfolio of dividend-paying
common stocks which have been researched by our own staff and offer reasonable
valuation based on price to earnings, book value and cash flows.
Our investment strategy is to seek out companies that meet the demanding
fundamental analysis of our research staff. Visits with management, suppliers,
customers, distributors and unions are among the sources utilized by our
analysts to form judgments about the outlook for each company. The results of
this analysis are joined with rigorous valuation for each investment in the
portfolio.
Two technology companies that typify our investment approach are Dallas
Semiconductor and AVX Corporation. Both companies suffered in the sharp
correction that affected the sector last summer and fall. Our research was able
to identify strong operating and market position characteristics that indicated
a very favorable earnings outlook for both companies that was not reflected in
either company's valuation.
Currently, the fund is diversified among 35 investments representing most
sectors of our economy. Our broad-based research effort is focused on companies
that are taking requisite action to improve profitability. Conversations with a
broad cross-section of managements indicate a favorable outlook for continued
moderate economic growth with low inflation. We will continue to seek out those
com-panies that present a favorable earnings outlook at prices that offer good
value.
2
<PAGE> 5
INVESTMENT ADVISER'S REPORT
- --------------------------------------------------------------------------------
FAIRPORT GOVERNMENT SECURITIES FUND
The graph below compares the increase in value of a $10,000 investment in
Fairport Government Securities Fund with the performance of the Lehman Brothers
Intermediate Treasury Bond and Merrill Lynch Intermediate Treasury Bond
Indices*.
FAIRPORT GOVERNMENT SECURITIES FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
[CHART]
AVERAGE ANNUAL TOTAL RETURN*
<TABLE>
<S> <C>
1 Year ....................... 5.28%
Since Inception .............. 3.87%
</TABLE>
* For period ending 4/30/97
<TABLE>
<CAPTION>
Lehman Brothers Merrill Lynch
Fairport Government Intermediate Intermediate
Securities Fund Treasury Bond Index Treasury Bond Index
<S> <C> <C> <C>
7/1/93 $10,000 $10,000 $10,000
7/93 10,000 10,019
10/93 10,304 10,236
1/94 10,346 10,328
4/94 9,649 9,972
7/94 9,748 10,118
10/94 9,558 10,067
1/95 9,733 10,215
4/95 10,170 10,588
7/95 10,628 10,963
10/95 10,968 11,249
1/96 11,350 11,599 11,618
4/96 10,989 11,386 11,396
7/96 11,093 11,527 11,537
10/96 11,471 11,882 11,886
1/97 11,545 12,004 12,012
4/97 11,569 12,085 12,098
</TABLE>
Past performance is no guarantee of future results.
*The Fund has selected the Merrill Lynch Intermediate Treasury Bond Index to
replace the Lehman Brothers Intermediate Treasury Bond Index as the Fund's
proper benchmark because the Merrill Lynch Intermediate Treasury Bond Index is
considered a widely used and appropriate index and information about such index
is more readily available to the Fund.
In order to meet its objective of current income with preservation of capital,
Fairport Government Securities Fund seeks to minimize credit risk by investment
in securities issued directly by the U.S. Government. Because changes in
interest rates affect the value of the Fund's holdings, investment in issues
maturing in less than ten years are the primary focus of the portfolio.
During the past six months interest rates rose 1/2% as the stronger than
expected economy prompted renewed fears of inflation and the prospective
tight-ening of monetary conditions by the Federal Reserve Bank. In fact, the
monetary authorities did raise short-term rates by 1/4% to alert the markets to
their concerns. As the period ended there were signs that the economy was
slowing somewhat and that inflation remained firmly in control. Our outlook
calls for a more favorable environment for the bond market.
3
<PAGE> 6
FAIRPORT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIRPORT MIDWEST GROWTH FUND April 30, 1997
============================================================================================================
(Unaudited) Shares Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 98.33%
CAPITAL GOODS-17.69%
Applied Industrial Technologies, Inc. ................................... 78,750 $ 2,490,469
GATX Corp. .............................................................. 41,000 2,244,750
Harnischfeger Industries, Inc. .......................................... 50,000 2,081,250
Kennametal, Inc. ........................................................ 50,000 1,800,000
Park-Ohio Industries, Inc.* ............................................. 100,509 1,218,671
Perceptron, Inc.* ....................................................... 55,500 1,567,875
-------------
11,403,015
- ------------------------------------------------------------------------------------------------------------
COMMUNICATION EQUIPMENT-2.94%
Allen Telecom, Inc.* .................................................... 110,000 1,897,500
- ------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES-6.08%
OfficeMax, Inc.*. ....................................................... 150,000 1,856,250
Royal Appliance Manufacturing Co.* ...................................... 300,000 2,062,500
-------------
3,918,750
- ------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES-24.17%
Bob Evans Farms, Inc. ................................................... 150,000 1,987,500
Consolidated Stores Corp.* .............................................. 68,375 2,735,000
Deluxe Corp. ............................................................ 70,000 2,143,750
Federated Department Stores, Inc.* ...................................... 70,000 2,380,000
Rite Aid Corp. .......................................................... 72,000 3,312,000
Worthington Foods, Inc. ................................................. 160,000 3,020,000
-------------
15,578,250
- ------------------------------------------------------------------------------------------------------------
ENERGY-4.60%
Belden & Blake Corp.* ................................................... 115,100 2,963,825
- ------------------------------------------------------------------------------------------------------------
FINANCE-17.05%
First Bank System, Inc. ................................................. 33,000 2,532,750
First Empire State Corp. ................................................ 8,000 2,576,000
Norwest Corp. ........................................................... 60,000 2,992,500
Star Banc Corp. ......................................................... 68,000 2,890,000
-------------
10,991,250
- ------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
HEALTH CARE-9.00%
Patterson Dental Co.* ................................................... 75,000 $ 2,512,500
Stryker Corp ............................................................ 100,000 3,287,500
-------------
5,800,000
- ------------------------------------------------------------------------------------------------------------
MATERIALS/SERVICES-14.06%
Armco, Inc.* ............................................................ 500,000 1,750,000
Durco International, Inc. ............................................... 55,800 1,388,025
Figgie International, Inc., Class A* .................................... 180,000 2,137,500
Reynolds & Reynolds Co., Class A ........................................ 91,000 1,888,250
A. Schulman, Inc. ....................................................... 100,000 1,900,000
-------------
9,063,775
- ------------------------------------------------------------------------------------------------------------
TECHNOLOGY-2.74%
Methode Electronics, Inc., Class A ...................................... 125,000 1,765,625
- ------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS-(COST $49,353,830) .................................. 63,381,990
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 1.72% (COST $1,112,000)
UMB Bank, U.S. Treasury Note, $1,139,000 par, 5.875% coupon,
due 03/31/99, dated 04/30/97, to be sold on 05/01/97 at $1,112,156 ... $ 1,112,000 1,112,000
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-100.05% (COST $50,465,830**) .......................... 64,493,990
-------------
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS-(0.05)% .................. (33,086)
-------------
NET ASSETS-100.00% ...................................................... $ 64,460,904
============
============================================================================================================
<FN>
* Non-income producing security
**Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
</TABLE>
5
<PAGE> 8
FAIRPORT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIRPORT GROWTH AND INCOME FUND April 30,1997
============================================================================================================
(Unaudited) Shares Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 97.86%
AEROSPACE/DEFENSE-2.67%
Boeing Co. .............................................................. 7,000 $ 690,375
- ------------------------------------------------------------------------------------------------------------
CAPITAL GOODS-20.59%
Baldor Electric Co. ..................................................... 30,000 768,750
Emerson Electric Co. .................................................... 14,000 710,500
GATX Corp. .............................................................. 15,000 821,250
General Electric Co. .................................................... 7,100 787,213
Harnischfeger Industries, Inc. .......................................... 17,000 707,625
Kennametal, Inc. ........................................................ 20,000 720,000
Teleflex, Inc. .......................................................... 14,000 808,500
-----------
5,323,838
- ------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES-5.78%
Leggett & Platt, Inc. ................................................... 22,000 764,500
TRW, Inc. ............................................................... 14,000 729,750
-----------
1,494,250
- ------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES-22.49%
Bob Evans Farms, Inc. ................................................... 40,000 530,000
Carnival Corp., Class A ................................................. 20,000 737,500
Claire's Stores, Inc. ................................................... 44,000 841,500
Deluxe Corp. ............................................................ 20,000 612,500
Richfood Holdings, Inc. ................................................. 22,000 448,250
Rite Aid Corp. .......................................................... 18,000 828,000
Sara Lee Corp. .......................................................... 18,000 756,000
Stanhome, Inc. .......................................................... 22,000 665,500
Viad Corp. .............................................................. 26,000 396,500
-----------
5,815,750
- ------------------------------------------------------------------------------------------------------------
FINANCE-15.75%
American International Group, Inc. ...................................... 7,000 899,500
First Bank System, Inc. ................................................. 8,800 675,400
First Empire State Corp. ................................................ 2,700 869,400
National City Corp. ..................................................... 16,000 780,000
Norwest Corp. ........................................................... 17,000 847,875
-----------
4,072,175
- ------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
HEALTH CARE-5.10%
Baxter International, Inc. .............................................. 10,000 $ 478,750
Beckman Instruments, Inc. ............................................... 20,000 840,000
-------------
1,318,750
- ------------------------------------------------------------------------------------------------------------
MATERIALS/SERVICES-6.82%
Cabot Corp. ............................................................. 26,000 572,000
Ferro Corp. ............................................................. 20,000 622,500
A. Schulman, Inc. ....................................................... 30,000 570,000
-------------
1,764,500
- ------------------------------------------------------------------------------------------------------------
TECHNOLOGY-15.82%
Avnet, Inc. ............................................................. 13,000 791,375
AVX Corp. ............................................................... 34,000 760,750
Dallas Semiconductor Corp. .............................................. 26,000 949,000
Harris Corp. ............................................................ 11,000 940,500
Methode Electronics, Inc., Class A ...................................... 46,000 649,750
-------------
4,091,375
- ------------------------------------------------------------------------------------------------------------
UTILITIES-2.84%
GTE Corp. ............................................................... 16,000 734,000
- ------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS-(COST $18,532,683) .................................. 25,305,013
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 2.15% (COST $557,000)
UMB Bank, U.S. Treasury Note, $570,000 par, 5.875% coupon,
due 03/31/99, dated 04/30/97, to be sold on 05/01/97 at $557,078 ..... $ 557,000 557,000
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-100.01% (COST $19,089,683**) .......................... 25,862,013
-------------
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS-(0.01)% .................. (3,695)
-------------
NET ASSETS-100.00% ...................................................... $ 25,858,318
=============
============================================================================================================
<FN>
**Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
</TABLE>
7
<PAGE> 10
FAIRPORT FUNDS SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIRPORT GOVERNMENT SECURITIES FUND April 30, 1997
============================================================================================================
Principal
(Unaudited) Amount Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY NOTES -- 99.24%
U.S. TREASURY NOTES
5.500%, 04/15/00 ........................................................ $ 1,000,000 $ 975,810
5.625%, 02/28/01 ........................................................ 1,000,000 970,350
6.625%, 03/31/02 ........................................................ 250,000 250,392
6.250%, 02/15/03 ........................................................ 700,000 688,170
5.875%, 02/15/04 ........................................................ 1,600,000 1,530,240
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.24% (COST $4,508,088**) ............................ 4,414,962
-----------
CASH AND OTHER ASSETS NET OF LIABILITIES-0.76% .......................... 33,730
-----------
NET ASSETS-100.00% ...................................................... $ 4,448,692
===========
============================================================================================================
<FN>
**Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
</TABLE>
8
<PAGE> 11
FAIRPORT FUNDS STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 30, 1997
=============================================================================================================================
FAIRPORT MIDWEST FAIRPORT GROWTH FAIRPORT GOVERNMENT
(Unaudited) GROWTH FUND AND INCOME FUND SECURITIES FUND
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities at value (cost $50,465,830,
$19,089,683 and $4,508,088, respectively) .................. $ 64,493,990 $ 25,862,013 $ 4,414,962
Cash .......................................................... 37,312 935 2,875
Receivable for capital stock sold ............................. 17,947 40,181 0
Dividends and interest receivable ............................. 17,065 14,224 41,954
Reimbursement due from Adviser ................................ 11,248 6,157 6,868
Deferred organizational costs (Note A) ........................ 9,328 9,328 9,328
Other assets .................................................. 10,872 4,378 947
------------ ------------ ------------
Total assets ........................................... 64,597,762 25,937,216 4,476,934
------------ ------------ ------------
Liabilities
Payable for capital stock redeemed ............................ 61,101 20,308 0
Payable for securities purchased .............................. 0 23,000 0
Accrued expenses .............................................. 75,757 35,590 9,403
Distributions payable ......................................... 0 0 18,839
------------ ------------ ------------
Total liabilities ....................................... 136,858 78,898 28,242
------------ ------------ ------------
Net Assets
Applicable to 4,104,763, 1,729,470
and 463,731 shares outstanding, respectively ............... $ 64,460,904 $ 25,858,318 $ 4,448,692
============ ============ ============
Net Assets Consist of
Capital paid-in ............................................... $ 49,290,852 $ 17,625,555 $ 4,635,390
Undistributed (distributions in excess of) net investmentincome (43,030) 21,023 0
Accumulated net realized gain (loss) on investments ........... 1,184,922 1,439,410 (93,572)
Net unrealized appreciation (depreciation) on investments ..... 14,028,160 6,772,330 (93,126)
------------ ------------ ------------
$ 64,460,904 $ 25,858,318 $ 4,448,692
============ ============ ============
Net Asset Value, Offering and
Redemption Price Per Share ................................. $ 15.70 $ 14.95 $ 9.59
============ ============ ============
===========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 12
FAIRPORT FUNDS STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended April 30, 1997
==============================================================================================================
FAIRPORT MIDWEST FAIRPORT GROWTH FAIRPORT GOVERNMENT
(Unaudited) GROWTH FUND AND INCOME FUND SECURITIES FUND
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends ............................................ $ 358,272 $ 243,646 $ 0
Interest ............................................. 68,582 13,110 143,509
----------- ----------- ----------
Total investment income ........................ 426,854 256,756 143,509
----------- ----------- ----------
EXPENSES
Investment advisory fees (Note B) .................... 231,921 92,366 6,029
Distribution expenses (Note B) ....................... 76,550 30,387 5,973
Administration fees .................................. 38,964 15,713 3,688
Transfer agent fees .................................. 24,515 17,167 13,260
Legal fees ........................................... 19,836 10,241 3,224
Pricing fees ......................................... 19,629 13,058 12,584
Registration expenses ................................ 19,588 13,041 9,323
Custodian fees ....................................... 13,788 8,690 2,659
Printing fees ........................................ 12,149 4,712 1,363
Auditing fees ........................................ 11,238 4,512 1,109
Insurance fees ....................................... 10,986 4,487 1,024
Trustees fees ........................................ 7,933 3,184 784
Amortization of organizational costs (Note A) ........ 1,540 1,540 1,540
Miscellaneous expenses ............................... 2,073 955 347
----------- ----------- ----------
Total expenses ................................. 490,710 220,053 62,907
----------- ----------- ----------
Expenses reimbursed (Note B) ......................... (64,429) (35,601) (41,237)
----------- ----------- ----------
Net expenses ................................... 426,281 184,452 21,670
----------- ----------- ----------
NET INVESTMENT INCOME ................................ 573 72,304 121,839
----------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments ..................... 1,217,261 1,437,851 15,341
Net change in unrealized appreciation
(depreciation) on investments ..................... 3,887,858 1,706,258 (93,194)
----------- ----------- ----------
Net realized and unrealized gain
(loss) on investments ............................. 5,105,119 3,144,109 (77,853)
----------- ----------- ----------
Increase in Net Assets from Operations ............... $ 5,105,692 $ 3,216,413 $ 43,986
=========== =========== ==========
===========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 13
FAIRPORT FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
====================================================================================================================================
Fairport Midwest Fairport Growth Fairport Government
Growth Fund and Income Fund Securities Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
4/30/97 10/31/96 4/30/97 10/31/96 4/30/97 10/31/96
(unaudited) (unaudited) (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income ..................... $ 573 $ 82,618 $ 72,304 $ 224,711 $ 121,839 $ 367,629
Net realized gain (loss) on investments ... 1,217,261 4,515,778 1,437,851 1,856,970 15,341 (97,666)
Net change in unrealized appreciation
(depreciation) on investments .......... 3,887,858 3,805,220 1,706,258 1,863,728 (93,194) (3,304)
----------- ----------- ----------- ----------- ----------- -----------
Increase in net assets .................... 5,105,692 8,403,616 3,216,413 3,945,409 43,986 266,659
----------- ----------- ----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................ (33,176) (91,013) (86,998) (254,673) (121,839) (405,004)
From net realized gains ................... (4,293,833) (774,801) (178,762) 0 0
----------- ----------- ----------- ----------- ----------- -----------
Total distributions ....................... (4,327,009) (865,814) (433,435) (121,839) (405,004)
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ................. 6,009,359 11,742,064 1,646,891 4,811,561 359,279 1,737,076
Reinvestment of dividends ................. 4,299,160 857,142 1,916,279 383,496 100,837 309,367
Amount paid for repurchase of shares ...... (3,824,215) (12,346,785) (2,048,188) (8,718,184) (1,685,871) (4,802,614)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from capital
transactions ........................... 6,484,304 252,421 1,514,982 (3,523,127) (1,225,755) (2,756,171)
----------- ----------- ----------- ----------- ----------- -----------
Total increase (decrease) in net assets ... 7,262,987 7,790,223 2,787,465 (11,153) (1,303,608) (2,894,516)
NET ASSETS
Beginning of period ....................... 57,197,917 49,407,694 23,070,853 23,082,006 5,752,300 8,646,816
----------- ----------- ----------- ----------- ----------- -----------
End of period ............................. $64,460,904 $57,197,917 $25,858,318 $23,070,853 $ 4,448,692 $ 5,752,300
=========== =========== =========== =========== =========== ===========
Accumulated undistributed (distributions in
excess of) net investment income includ-
ed in net assets at end of period ...... $ (43,030) $ (10,427) $ 21,023 $ 35,717 $ 0 $ 0
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS
Shares sold ............................... 379,678 815,058 112,593 361,212 37,261 177,063
Shares issued on reinvestment
of dividends ........................... 278,804 62,134 135,618 28,972 10,405 31,864
Shares repurchased ........................ (242,867) (835,517) (140,803) (646,096) (173,798) (498,079)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from capital
transactions ........................... 415,615 41,675 107,408 (255,912) (126,132) (289,152)
=========== =========== =========== =========== =========== ===========
===========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 14
FAIRPORT FUNDS
- --------------------------------------------------------------------------------
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
FAIRPORT MIDWEST GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------
Six Months Year Year Year Period
Ended Ended Ended Ended Ended
4/30/97 10/31/96 10/31/95 10/31/94 10/31/93(1)
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................. $ 15.50 $ 13.55 $ 12.27 $ 11.07 $ 10.00
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income ................................ 0.00 0.02 0.04 0.02 0.01
Net realized and unrealized gain (loss) on investments 1.36 2.16 2.04 1.19 1.07
------- ------- ------- ------- -------
Total from investment operations ............... 1.36 2.18 2.08 1.21 1.08
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
From net investment income ........................... (0.01) (0.03) (0.04) (0.01) (0.01)
From realized capital gains .......................... (1.15) (0.20) (0.76) 0.00 0.00
------- ------- ------- ------- -------
Total distributions ............................ (1.16) (0.23) (0.80) (0.01) (0.01)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ....................... $ 15.70 $ 15.50 $ 13.55 $ 12.27 $ 11.07
------- ------- ------- ------- -------
TOTAL RETURN ......................................... 8.92%** 16.28% 18.17% 10.89% 10.90%**
======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) ...................... $64,461 $57,198 $49,408 $29,688 $ 9,870
Ratio of expenses to average net assets
before reimbursement of expenses by Adviser ....... 1.59%* 1.69% 1.57% 1.54% 2.89%*
after reimbursement of expenses by Adviser ........ 1.38%* 1.38% 1.41% 1.45% 1.50%*
Ratio of net investment income to average net assets
before reimbursement of expenses by Adviser ....... (0.21%)* (0.16%) 0.14% 0.08% (1.11%)*
after reimbursement of expenses by Adviser ........ 0.00%* 0.15% 0.29% 0.17% 0.28%*
Portfolio turnover ................................... 29.30% 58.01% 46.51% 77.57% 0.00%
Average commission rate paid ......................... $0.0493 $0.0600 N/A N/A N/A
=======================================================================================================================
<FN>
* Annualized
**Not annualized
N/A Not applicable; disclosure not required
(1) The Fairport Midwest Growth Fund, Fairport Growth and Income Fund and
Fairport Government Securities Fund commenced operations on July 1, 1993.
See accompanying notes to financial statements.
</TABLE>
12
<PAGE> 15
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIRPORT GROWTH AND INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------
Six Months Year Year Year Period
Ended Ended Ended Ended Ended
4/30/97 10/31/96 10/31/95 10/31/94 10/31/93(1)
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................. $ 14.22 $ 12.29 $ 10.68 $ 10.36 $ 10.00
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income ................................ 0.04 0.13 0.15 0.14 0.04
Net realized and unrealized gain (loss) on investments 1.89 2.04 1.68 0.35 0.36
------- ------- ------- ------- -------
Total from investment operations ............... 1.93 2.17 1.83 0.49 0.40
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
From net investment income ........................... (0.05) (0.14) (0.12) (0.14) (0.04)
From realized capital gains .......................... (1.15) (0.10) (0.10) (0.03) 0.00
------- ------- ------- ------- -------
Total distributions ............................ (1.20) (0.24) (0.22) (0.17) (0.04)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ....................... $ 14.95 $ 14.22 $ 12.29 $ 10.68 $ 10.36
------- ------- ------- ------- -------
TOTAL RETURN ......................................... 14.06%** 17.77% 17.36% 4.72% 3.98%**
======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) ...................... $25,858 $23,071 $23,082 $18,177 $ 8,716
Ratio of expenses to average net assets
before reimbursement of expenses by Adviser ....... 1.79%* 1.83% 1.79% 1.72% 2.79%*
after reimbursement of expenses by Adviser ........ 1.50%* 1.50% 1.50% 1.50% 1.50%*
Ratio of net investment income to average net assets
before reimbursement of expenses by Adviser ....... 0.30%* 0.58% 0.98% 1.20% 0.10%*
after reimbursement of expenses by Adviser ........ 0.59%* 0.91% 1.26% 1.42% 1.39%*
Portfolio turnover ................................... 25.29% 34.02% 13.36% 35.16% 4.18%
Average commission rate paid ......................... $0.0600 $0.0591 N/A N/A N/A
=======================================================================================================================
<CAPTION>
FAIRPORT GOVERNMENT SECURITIES FUND
- -----------------------------------------------------------------------------------------------------------------------
Six Months Year Year Year Period
Ended Ended Ended Ended Ended
4/30/97 10/31/96 10/31/95 10/31/94 10/31/93(1)
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................. $ 9.75 $ 9.84 $ 9.03 $ 10.20 $ 10.00
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income ................................ 0.24 0.49 0.49 0.43 0.15
Net realized and unrealized gain (loss) on investments (0.16) (0.05) 0.81 (1.17) 0.16
------- ------- ------- ------- -------
Total from investment operations ............... 0.08 0.44 1.30 (0.74) 0.31
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
From net investment income ........................... (0.24) (0.53) (0.49) (0.42) (0.11)
From realized capital gains .......................... 0.00 0.00 0.00 (0.01) 0.00
------- ------- ------- ------- -------
Total distributions ............................ (0.24) (0.53) (0.49) (0.43) (0.11)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ....................... $ 9.59 $ 9.75 $ 9.84 $ 9.03 $ 10.20
------- ------- ------- ------- -------
TOTAL RETURN ......................................... 0.85%** 4.58% 14.76% (7.24%) 3.04%**
======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) ...................... $ 4,449 $ 5,752 $ 8,647 $ 7,614 $ 5,829
Ratio of expenses to average net assets
before reimbursement of expenses by Adviser ....... 2.61%* 2.05% 2.16% 1.80% 2.78%*
after reimbursement of expenses by Adviser ........ 0.90%* 0.90% 0.90% 0.90% 0.90%*
Ratio of net investment income to average net assets
before reimbursement of expenses by Adviser ....... 3.34%* 3.78% 3.89% 3.88% 2.29%*
after reimbursement of expenses by Adviser ........ 5.05%* 4.93% 5.16% 4.78% 4.17%*
Portfolio turnover ................................... 5.26% 21.23% 1.28% 24.14% 24.53%
Average commission rate paid ......................... N/A N/A N/A N/A N/A
=======================================================================================================================
</TABLE>
13
<PAGE> 16
FAIRPORT FUNDS
- --------------------------------------------------------------------------------
(Unaudited) April 30, 1997
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES:
Fairport Funds (the "Trust"), formerly known as Roulston Family of Funds, is an
open-end management investment company and is organized under Ohio law as a
business trust under a Declaration of Trust dated September 16, 1994. On March
1, 1996, the Trust changed its name from The Roulston Family of Funds to
Fairport Funds. The Trust currently consists of three Funds (the "Funds"):
Fairport Midwest Growth Fund (the "Midwest Growth Fund"), Fairport Growth and
Income Fund (the "Growth and Income Fund") and Fairport Government Securities
Fund (the "Government Fund"). The Trust is registered under the Investment
Company Act of 1940, as amended (the "Act"). On April 29, 1995, pursuant to an
Agreement and Plan of Reorganization and Liquidation, the Midwest Growth Fund,
the Growth and Income Fund and the Government Fund of the Trust acquired in a
tax free reorganization, all of the assets of each of the Roulston Midwest
Growth Fund, the Roulston Growth and Income Fund and the Roulston Government
Securities Fund (collectively, the "Acquired Funds") of the Advisors' Inner
Circle Fund, a Massachusetts business trust, respectively, in exchange for the
assumption of such Acquired Fund's liabilities and a number of full and
fractional shares of the corresponding Fund of the Trust having an aggregate net
asset value equal to such Acquired Fund's net assets (the "Reorganization"). The
Reorganization was approved by the shareholders of the Acquired Funds on March
24, 1995. For accounting purposes, the Reorganization was accounted for in a
manner similar to a pooling of interest and the financial highlights have been
presented since the Funds' inception, July 1, 1993.
The preparation of financial statements in conform-ity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently
followed by the Trust.
(1) SECURITY VALUATION: The portfolio securities of each Fund will be valued at
market value. Each Fund uses one or more pricing services to provide market
quotations for equity, fixed income and variable income securities. If market
quotations are not available, securities will be valued by a method which the
Board of Trustees believes accurately reflects fair value. Equity securities
which are listed or admitted to trading on a national securities exchange or
other market trading system which reports actual transaction prices on a
contemporaneous basis will be valued at the last sales price on the exchange on
which the security is principally traded. For fixed and variable income
securities, the pricing service may use a matrix system of valuation which
considers factors such as securities prices, yield features, call features,
ratings and developments related to a specific security. The Trustees may
deviate from the valuation provided by the pricing service whenever, in their
judgment, such valuation is not indicative of the fair value of the debt
security. Short-term investments with a maturity of 60 days or less are valued
at amortized cost, which approximates market value.
(2) REPURCHASE AGREEMENTS: All Funds may enter into repurchase agreements with
financial institu-tions deemed to be creditworthy by Roulston & Company, Inc.
("Roulston"), the Funds' investment adviser, under guidelines approved by the
Trust's Board of Trustees, subject to the seller's agreement to repurchase and
the Funds' agreement to resell such securities at a mutually agreed-upon date
and price. Securities purchased subject to repurchase agreements are deposited
with the Funds' custodian and, pursuant to the terms of the repurchase
agreement, must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the seller were to
default on its repurchase obligation or become insolvent, the Fund would suffer
a loss to the extent that the proceeds
14
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
from a sale of the underlying portfolio securities were less than the repurchase
price under the agreement, or to the extent that the disposition of such
securities by the Fund was delayed pending court action.
(3) FEDERAL INCOME TAXES: The Funds intend to be treated as "regulated
investment companies" under Sub-chapter M of the Internal Revenue Code and to
distribute substantially all of their net taxable income. Accordingly, no
provisions for Federal income taxes have been made in the accompanying financial
statements.
(4) INVESTMENT INCOME AND SECURITIES TRANSACTIONS: Dividend income is recorded
on the ex-dividend date. Interest income is accrued daily. Security transactions
are accounted for on the date securities are purchased or sold. Security gains
and losses are determined on the identified cost basis.
(5) DIVIDENDS AND DISTRIBUTIONS: Substantially all of the net investment income
(exclusive of capital gains) of the Midwest Growth Fund and the Growth and
Income Fund is distributed in the form of semi-annual dividends. Net investment
income (exclusive of capital gains) of the Government Fund is declared daily and
distributed in the form of monthly dividends. Substantially all of the capital
gains realized by the Funds will be distributed annually.
(6) DEFERRED ORGANIZATIONAL COSTS: Organizational costs are being amortized on a
straight-line basis over five years commencing April 29, 1995.
NOTE (B) RELATED PARTY TRANSACTIONS:
The Trust and Roulston have entered into an Investment Advisory Agreement (the
"Agreement") dated as of January 20, 1995. Under terms of the Agreement,
Roulston makes the investment decisions for the assets of the Funds and
continuously reviews, supervises, and administers the investment program of the
Funds. For its services as investment adviser, Roulston receives a fee, at an
annual rate of 0.75% of the average daily net assets of each of the Midwest
Growth Fund and the Growth and Income Fund up to $100 million of such assets,
and 0.50% of each such Fund's assets of $100 million or more. With respect to
the Government Fund, Roulston receives a fee at an annual rate of 0.25% of the
average daily net assets of the Government Fund up to $100 million of such
assets, and 0.125% of such assets of $100 million or more. Such fees will be
calculated daily and paid monthly.
Prior to the effective date of the Reorganization, Roulston served as the
investment adviser to each of the Acquired Funds. For such services, Roulston
received an advisory fee from the Acquired Funds at the following annual rates:
1.00% of the value of each of the Midwest Growth Fund's and the Growth and
Income Fund's average daily net assets up to $100 million, 0.75% of each such
Fund's assets over $100 million; and 0.50% of the value of the Government Fund's
average daily net assets up to $100 million, 0.375% of the average daily net
assets from $100 million to $200 million, and 0.25% of the average daily net
assets of such Fund over $200 million.
Pursuant to Rule 12b-1 under the Act, the Trust has adopted a Distribution
Agreement and Shareholder Service Plan dated January 20, 1995 (the "Plan"),
under which each Fund is authorized to pay or reimburse Roulston Research Corp.
(the "Distributor"), ultimately a wholly-owned subsidiary of Fairport
Investments which is a wholly-owned subsidiary of Roulston, a periodic amount
calculated at an annual rate not to exceed 0.25% of the average daily net asset
value of such Fund. Such an amount may be used by the Distributor to pay
broker-dealers, banks and other institutions (a "Participating Organization")
for distribution and/or shareholder service assistance pursuant to an agreement
between the Distributor and the Participating Organization or for distribution
assistance and/or shareholder service provided by the Distributor. Under the
Plan, a Participating Organization may include the Distributor's affiliates.
15
<PAGE> 18
FAIRPORT FUNDS NOTES TO FINANCIAL STATEMENTS (CONT.)
- --------------------------------------------------------------------------------
(Unaudited)
In addition, the Board of Trustees of the Trust adopted certain procedures in
accordance with Section 17(e)(2) and Rule 17e-1 under the Act pursuant to which
the Distributor was permitted to execute certain portfolio transactions as
broker on behalf of the Funds. In connection with such brokerage transactions,
Roulston as the investment adviser, could determine to use the Distributor if
such use would likely result in commissions, fees or other renumeration and
prices for and execution of securities transactions at least as favorable to
such Fund as those likely to be derived from other qualified brokers. Such
procedures were in place and used during the fiscal year ended October 31, 1996
until February 12, 1996, and have not been used since that date.
Roulston has agreed with the Trust to waive its investment advisory fee and to
reimburse certain other expenses of the Funds from the effective date of the
Reorganization (April 29, 1995) and such waivers and reimbursements shall
continue at least through October 31, 1997, to the extent necessary to cause
total operating expenses as a percentage of net assets of the Midwest Growth
Fund, the Growth and Income Fund and the Government Fund not to exceed 1.38%,
1.50% and 0.90%, respectively.
Information regarding these transactions is as follows for the six month period
ended April 30, 1997:
<TABLE>
<CAPTION>
MIDWEST GROWTH AND
GROWTH INCOME GOVERNMENT
FUND FUND FUND
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Fees before fee waiver ............... $231,921 $ 92,366 $ 6,029
Fees waived .......................... 64,429 35,601 6,029
RULE 12B-1 FEES:
Fees before fee waiver ............... 76,550 30,387 5,973
Fees waived .......................... 0 0 0
Other expenses
reimbursed ......................... 0 0 35,208
- ---------------------------------------------------------------------------------
</TABLE>
Certain officers and trustees of the Trust are also officers, directors and/or
employees of Roulston and the Distributor. The officers and such interested
trustees served without direct compensation from the Trust.
NOTE (C) INVESTMENT TRANSACTIONS:
Purchases and sales of investment securities (excluding short-term securities)
for the six month period ended April 30, 1997 were:
<TABLE>
<CAPTION>
PROCEEDS
PURCHASES FROM SALES
- -----------------------------------------------------------------------------
<S> <C> <C>
Midwest Growth Fund ........................ $ 22,600,554 $ 17,563,993
Growth and Income Fund ..................... 7,183,219 6,094,648
Government Fund ............................ 249,375 1,320,656
- -----------------------------------------------------------------------------
</TABLE>
NOTE (D) UNREALIZED APPRECIATION
AND DEPRECIATION:
At April 30, 1997, the gross unrealized appreciation and depreciation of
securities for book and Federal income tax purposes consisted of the following:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION (DEPRECIATION) (DEPRECIATION)
(000) (000) (000)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Midwest Growth Fund $ 15,611 $ (1,583) $ 14,028
Growth and Income Fund 7,041 (269) 6,772
Government Fund 1 (94) (93)
- -----------------------------------------------------------------------------
</TABLE>
16
<PAGE> 19
[FAIRPORT FUNDS LOGO]
4000 Chester Avenue
Cleveland, Ohio 44103
1-800-332-6459
DIRECTORS:
Thomas V. Chema
David H. Gunning
Scott D. Roulston
Ivan Winfield
OFFICERS:
Scott D. Roulston, President
Michele R. Fogarty, Secretary and Treasurer
ADVISER:
Roulston & Company, Inc.
4000 Chester Avenue
Cleveland, Ohio 44103
DISTRIBUTOR:
Roulston Research Corp.
4000 Chester Avenue
Cleveland, Ohio 44103
ADMINISTRATOR & TRANSFER AGENT:
FPS Services, Inc.
3200 Horizon Drive
King of Prussia, Pennsylvania 19406
LEGAL COUNSEL:
Baker & Hostetler LLP
65 East State Street
Columbus, Ohio 43215
INDEPENDENT PUBLIC ACCOUNTANTS:
Ernst & Young, LLP
1300 Huntington Building
925 Euclid Avenue
Cleveland, Ohio 44115-1405
For information, call 1-800-332-6459
Fairport Funds take their name from the historic Fairport Harbor Lighthouse,
located on Lake Erie at the Grand River, just east of the Funds' headquarters in
Cleveland, Ohio. Originally built in 1825, the Fairport Harbor Lighthouse guided
ships safely in and out of the harbor for 100 years. In its early years the
lighthouse was considered the gateway to the Western Reserve and the vast
frontiers of the Northwest Territories and beyond. Later the lighthouse served
as a beacon and supply stop for pioneers and travelers on their way to western
Great Lakes ports and beyond. The original brick structure was rebuilt in 1871
of sandstone blocks, as it remains today.
This report is submitted for the general information of the shareholders of the
Funds. It is not authorized for distribution to prospective investors in a Fund
unless preceded or accompanied by an effective Prospectus which includes details
regarding the Fund's objectives, policies, expenses and other information.
