<PAGE> 1
[FAIRPORT FUNDS LOGO] 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, 1998
Advised by
ROULSTON & COMPANY, INC.
<PAGE> 2
F A I R P O R T F U N D S SEMI-ANNUAL REPORT TO SHAREHOLDERS
- --------------------------------------------------------------------------------
May 28, 1998
Dear Shareholder:
We are pleased to issue the financial report on the Fairport Funds for the six
months ended April 30, 1998.
The Fairport Midwest Growth Fund gained 9.72% during the period, while the
Fairport Growth and Income Fund gained 12.97%. These returns were earned in a
period when the market, as measured by the Standard & Poor's 500 Stock Index,
gained 22.48%. The Fairport Government Securities Fund gained 2.79% during the
period while the Merrill Lynch Treasury Bond Index increased by 3.11%.
During the six months ended April 30, 1998, 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
F A I R P O R T F U N D S 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.
[GRAPH OMITTED]
<TABLE>
FAIRPORT MIDWEST GROWTH FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
<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
7/97 22,065 20,542 23,395
10/97 22,135 20,121 22,528
1/98 22,374 21,154 24,243
4/98 24,286 24,047 27,592
</TABLE>
Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
1 Year......................31.96%
Since Inception.............20.15%
*For period ending 4/30/98
Fund inception: 7/1/93
</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.
Based upon our discussions with corporate managements throughout the Midwest, we
believe the domestic economic expansion remains disciplined and sustainable. The
significant deterioration of the Asian economics must be closely monitored to
determine its potential impact on companies we own or are considering. The
long-term outlook for the Asian markets remains very positive, but economic
turmoil such as is now being experienced always takes longer to work through
than initially expected. Domestically, we are watching closely for any signs of
labor cost inflation or productivity deterioration.
<PAGE> 4
F A I R P O R T F U N D S
- --------------------------------------------------------------------------------
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.
[GRAPH OMITTED]
<TABLE>
FAIRPORT GROWTH AND INCOME FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
<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 17,054
1/97 16,558 17,590 19,107
4/97 17,167 17,753 19,563
7/97 20,353 20,924 23,395
10/97 20,560 20,414 22,528
1/98 20,900 21,395 24,243
4/98 23,227 24,032 27,592
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
1 Year..............35.30%
Since Inception.....19.05%
*For period ending 4/30/98
Fund inception: 7/1/93
</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 the 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 consumer stocks that typify our investment approach are Food Lion and Lowe's
Companies. Both companies were overlooked because they did not fit the popular
version of a successful operator.
Food Lion operates smaller stores in very convenient locations and is able to
compete effectively with the large national food chains in the competitive
Southeast. Lowe's suffered from a concern that the company would not be able to
compete with Home Depot. A strong operating record in the face of these concerns
provided the opportunity to take advantage of two good values.
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
companies 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 Merrill Lynch
Intermediate Treasury Bond Index.
FAIRPORT GOVERNMENT SECURITIES FUND: GROWTH OF A HYPOTHETICAL $10,000
INVESTMENT
<TABLE>
<CAPTION>
Merrill Lynch
Fairport Government Intermediate
Securities Fund Treasury Bond Index
<S> <C> <C>
7/1/93 $10,000 $10,000
7/93 10,000 10,021
10/93 10,304 10,235
1/94 10,346 10,328
4/94 9,649 9,970
7/94 9,748 10,112
10/94 9,558 10,064
1/95 9,733 10,219
4/95 10,170 10,591
7/95 10,628 10,973
10/95 10,968 11,262
1/96 11,350 11,618
4/96 10,989 11,396
7/96 11,093 11,537
10/96 11,471 11,886
1/97 11,545 12,012
4/97 11,569 12,098
7/97 12,046 12,527
10/97 12,246 12,757
1/98 12,575 13,069
4/98 12,588 13,242
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
1 Year....................8.81%
Since Inception...........4.88%
*For period ending 4/30/98
Fund inception: 7/1/93
</TABLE>
Past performance is no guarantee of future results.
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 or its agencies or
instrumentalities. 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 declined as it became apparent that
price inflation would be well controlled by the economic turmoil in Asia. Our
own growth rate is expected to moderate, suggesting continued low inflation and
little reason for the monetary authorities to take any action. We look for
favorable trends to continue in the bond market.
3
<PAGE> 6
F A I R P O R T F U N D S
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIRPORT MIDWEST GROWTH FUND APRIL 30, 1998
=================================================================================================================
(Unaudited) Shares Value
- -----------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 97.06%
<S> <C> <C>
CAPITAL GOODS-19.06%
Applied Industrial Technologies, Inc. ...................................... 104,000 $ 2,639,000
Applied Power, Inc., Class A ............................................... 56,000 2,093,000
BMC Industries, Inc. ....................................................... 100,000 1,825,000
GATX Corp. ................................................................. 41,000 3,397,875
Kennametal, Inc. ........................................................... 50,000 2,665,625
Littlefuse, Inc.* .......................................................... 90,000 2,272,500
Perceptron, Inc.* .......................................................... 70,000 1,067,500
-------------
15,960,500
- -----------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES-7.01%
OfficeMax, Inc.* ........................................................... 180,000 3,386,250
Standard Products Co. ...................................................... 77,500 2,480,000
-------------
5,866,250
- -----------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES-24.58%
Bob Evans Farms, Inc. ...................................................... 150,000 3,056,250
Braun's Fashions Corp.* .................................................... 150,000 1,950,000
Central Newspapers, Inc., Class A .......................................... 30,000 2,197,500
Consolidated Stores Corp.* ................................................. 75,468 3,018,720
Federated Department Stores, Inc.* ......................................... 70,000 3,443,125
Rite Aid Corp. ............................................................. 111,000 3,565,875
Worthington Foods, Inc. .................................................... 213,333 3,346,661
-------------
20,578,131
- -----------------------------------------------------------------------------------------------------------------
FINANCE-24.32%
First Empire State Corp. ................................................... 8,000 4,080,000
Household International, Inc. .............................................. 24,000 3,154,500
National City Corp. ........................................................ 35,280 2,443,140
Norwest Corp. .............................................................. 55,200 2,190,750
Star Banc Corp. ............................................................ 68,000 4,296,750
U.S. Bancorp ............................................................... 33,000 4,191,000
-------------
20,356,140
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Shares Value
- -----------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
<S> <C> <C>
HEALTH CARE-10.83%
Baxter International, Inc. ................................................. 55,000 $ 3,049,062
NCS Healthcare, Inc., Class A* ............................................. 92,000 2,702,500
Patterson Dental Co.* ...................................................... 112,500 3,311,719
-----------------
9,063,281
- -----------------------------------------------------------------------------------------------------------------
MATERIALS/SERVICES-8.87%
Armco, Inc.* ............................................................... 500,000 3,437,500
Hanna (M.A.) Co. ........................................................... 95,000 2,179,063
Stericycle, Inc.* .......................................................... 125,000 1,812,500
-----------------
7,429,063
- -----------------------------------------------------------------------------------------------------------------
TECHNOLOGY-2.39%
Methode Electronics, Inc., Class A ......................................... 125,000 2,000,000
- -----------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS-(COST $53,597,557) ..................................... 81,253,365
- -----------------------------------------------------------------------------------------------------------------
Principal
Amount
- -----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.03% (Cost $2,538,000)
UMB Bank, U.S. Treasury Bills, $2,670,000 par, 0.000% coupon,
due 09/24/98, dated 04/30/98, to be sold on 05/01/98 at $2,538,366 .... $ 2,538,000 2,538,000
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-100.09% (Cost $56,135,557**) ........................... 83,791,365
-----------------
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS-(0.09%) ................... (74,937)
-----------------
NET ASSETS-100.00% ....................................................... $ 83,716,428
================
=================================================================================================================
</TABLE>
* Non-income producing security
** Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
5
<PAGE> 8
FAIRPORT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIRPORT GROWTH AND INCOME FUND April 30,1998
=================================================================================================================
(Unaudited) Shares Value
- -----------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 98.74%
<S> <C> <C>
CAPITAL GOODS-17.97%
Applied Power, Inc., Class A ............................................. 20,000 $ 747,500
Baldor Electric Co. ...................................................... 40,000 1,050,000
BMC Industries, Inc. ..................................................... 50,000 912,500
Emerson Electric Co. ..................................................... 14,000 890,750
GATX Corp. ............................................................... 12,000 994,500
Kennametal, Inc. ......................................................... 24,000 1,279,500
Teleflex, Inc. ........................................................... 28,000 1,190,000
-----------------
7,064,750
- -----------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES-9.45%
Harman International Industries, Inc. .................................... 20,000 860,000
Leggett & Platt, Inc. .................................................... 20,000 1,038,750
Lowe's Cos., Inc. ........................................................ 26,000 1,818,375
-----------------
3,717,125
- -----------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES-20.95%
Bob Evans Farms, Inc. .................................................... 40,000 815,000
Carnival Corp., Class A .................................................. 20,000 1,391,250
Claire's Stores, Inc. .................................................... 46,800 1,020,825
Food Lion, Inc., Class A ................................................. 100,000 1,012,500
Richfood Holdings, Inc. .................................................. 50,000 1,371,875
Rite Aid Corp. ........................................................... 40,000 1,285,000
Viad Corp. ............................................................... 52,000 1,342,250
-----------------
8,238,700
- -----------------------------------------------------------------------------------------------------------------
FINANCE-20.46%
American International Group, Inc. ....................................... 9,000 1,184,062
First Empire State Corp. ................................................. 2,600 1,326,000
Household International, Inc. ............................................ 9,000 1,182,938
Morton International, Inc. . ............................................. 25,000 800,000
National City Corp. ...................................................... 14,400 997,200
Norwest Corp. ............................................................ 26,000 1,031,875
U.S. Bancorp ............................................................. 12,000 1,524,000
-----------------
8,046,075
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
- -----------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
<S> <C> <C>
HEALTH CARE-1.41%
Baxter International, Inc. ............................................... 10,000 $ 554,375
- -----------------------------------------------------------------------------------------------------------------
MATERIALS/SERVICES-13.67%
Cabot Corp. .............................................................. 30,000 1,078,125
Central Newspapers, Inc., Class A ........................................ 16,000 1,172,000
Ferro Corp. .............................................................. 30,000 864,375
Hanna (M.A.) Co. ......................................................... 46,000 1,055,125
Raychem Corp. ............................................................ 30,000 1,205,625
-----------------
5,375,250
- -----------------------------------------------------------------------------------------------------------------
TECHNOLOGY-14.83%
AVX Corp. ................................................................ 58,000 1,192,625
Dallas Semiconductor Corp. ............................................... 36,000 1,388,250
Harris Corp. ............................................................. 26,000 1,257,750
Methode Electronics, Inc., Class A ....................................... 46,000 736,000
Praxair, Inc. ............................................................ 25,000 1,257,812
-----------------
5,832,437
- -----------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS-(Cost $26,752,338) ................................... 38,828,712
- -----------------------------------------------------------------------------------------------------------------
Principal
Amount
- -----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.34% (Cost $525,000)
UMB Bank, U.S. Treasury Bills, $553,000 par, 0.000% coupon,
due 09/24/98, dated 04/30/98, to be sold on 05/01/98 at $525,076 ...... $ 525,000 525,000
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-100.08% (Cost $27,277,338**) ........................... 39,353,712
-----------------
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS-(0.08%) ................... (30,055)
-----------------
NET ASSETS-100.00% ....................................................... $ 39,323,657
================
=================================================================================================================
</TABLE>
** Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
7
<PAGE> 10
F A I R P O R T F U N D S SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIRPORT GOVERNMENT SECURITIES FUND April 30, 1998
=================================================================================================================
Principal
(Unaudited) Amount Value
- -----------------------------------------------------------------------------------------------------------------
BONDS -- 97.49%
U.S. TREASURY NOTES -- 69.43%
U.S. TREASURY NOTES
<S> <C> <C> <C>
6.625%, 03/31/02 ....................................................... $ 500,000 $ 516,705
6.250%, 02/15/03 ....................................................... 600,000 614,604
5.875%, 02/15/04 ....................................................... 1,150,000 1,160,810
7.000%, 07/15/06 ....................................................... 850,000 917,473
- -----------------------------------------------------------------------------------------------------------------
Total U.S. Treasury Notes-(Cost $3,150,833) ............................ 3,209,592
- -----------------------------------------------------------------------------------------------------------------
U.S. Government Agency Obligations -28.06% (Cost $1,297,205)
Federal Home Loan Bank
6.028%, 05/07/03 .................................................... 1,300,000 1,297,205
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-97.49% (Cost $4,448,038**) ........................... 4,506,797
-----------------
CASH AND OTHER ASSETS NET OF LIABILITIES-2.51% ......................... 116,128
-----------------
NET ASSETS-100.00% ..................................................... $ 4,622,925
================
=================================================================================================================
</TABLE>
** Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
8
<PAGE> 11
F A I R P O R T F U N D S STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 30, 1998
=================================================================================================================
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 $56,135,557,
$27,277,338 and $4,448,038, respectively) ........ $ 83,791,365 $ 39,353,712 $ 4,506,797
Cash ................................................ 189 166,438 28,201
Receivable for capital stock sold ................... 10,215 476,694 0
Receivable for securities sold ...................... 0 0 1,367,499
Dividends and interest receivable ................... 27,820 17,972 40,849
Reimbursement due from adviser, net ................. 0 0 4,115
Deferred organizational costs (Note A) .............. 6,222 6,222 6,222
Other assets ........................................ 11,409 4,530 658
------------ ------------ ------------
Total assets ................................. 83,847,220 40,025,568 5,954,341
------------ ------------ ------------
LIABILITIES
Payable for capital stock redeemed .................. 10,000 0 0
Payable for securities purchased .................... 11,000 646,023 1,297,205
Accrued expenses .................................... 57,272 31,986 14,730
Payable to adviser, net ............................. 52,520 23,902 0
Distributions payable ............................... 0 0 19,481
------------ ------------ ------------
Total liabilities ............................. 130,792 701,911 1,331,416
------------ ------------ ------------
NET ASSETS
Applicable to 4,280,579, 2,163,793
and 465,538 shares outstanding, respectively ..... $ 83,716,428 $ 39,323,657 $ 4,622,925
============ ============ ============
NET ASSETS CONSIST OF
Capital paid-in ..................................... $ 52,482,318 $ 25,114,411 $ 4,658,275
Distributions in excess of net investment income .... (91,388) (27,435) 0
Accumulated net realized gain (loss) on investments . 3,669,690 2,160,307 (94,109)
Net unrealized appreciation on investments .......... 27,655,808 12,076,374 58,759
------------ ------------ ------------
$ 83,716,428 $ 39,323,657 $ 4,622,925
============ ============ ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE ....................... $ 19.56 $ 18.17 $ 9.93
============ ============ ============
=================================================================================================================
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 12
F A I R P O R T F U N D S STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended April 30, 1998
=================================================================================================================
FAIRPORT MIDWEST FAIRPORT GROWTH FAIRPORT GOVERNMENT
(Unaudited) GROWTH FUND AND INCOME FUND SECURITIES FUND
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends ................................... $ 443,225 $ 219,583 $ 0
Interest .................................... 48,581 28,934 130,701
----------- ----------- -----------
Total investment income ............... 491,806 248,517 130,701
----------- ----------- -----------
EXPENSES
Investment advisory fees (Note B) ........... 302,252 128,625 5,583
Distribution expenses (Note B) .............. 99,542 42,360 5,516
Administration fees ......................... 45,126 17,830 2,372
Transfer agent fees ......................... 25,368 18,887 11,999
Legal fees .................................. 7,161 4,698 1,037
Pricing fees ................................ 22,046 14,109 11,777
Registration expenses ....................... 6,318 5,590 4,670
Custodian fees .............................. 11,039 6,492 3,873
Printing fees ............................... 15,832 6,787 1,045
Auditing fees ............................... 5,666 2,238 618
Insurance fees .............................. 12,031 4,765 668
Trustees fees ............................... 10,424 4,171 454
Amortization of organizational costs (Note A) 1,540 1,540 1,540
Miscellaneous expenses ...................... 7,041 2,802 348
----------- ----------- -----------
Total expenses ........................ 571,386 260,894 51,500
Expenses reimbursed (Note B) ................ (17,348) (8,053) (31,403)
----------- ----------- -----------
Net expenses .......................... 554,038 252,841 20,097
----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) ................ (62,232) (4,324) 110,604
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments ............ 3,628,512 2,146,579 10,193
Net change in unrealized appreciation
(depreciation) on investments ............ 3,911,505 2,071,270 (2,003)
----------- ----------- -----------
Net realized and unrealized gain
on investments ........................... 7,540,017 4,217,849 8,190
----------- ----------- -----------
INCREASE IN NET ASSETS FROM OPERATIONS ...... $ 7,477,785 $ 4,213,525 $ 118,794
=========== =========== ===========
=================================================================================================================
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 13
F A I R P O R T F U N D S STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
========================================================================================================
FAIRPORT MIDWEST FAIRPORT GROWTH
GROWTH FUND AND INCOME FUND
- --------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
4/30/98 10/31/97 4/30/98 10/31/97
(unaudited) (unaudited)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss) .............. $ (62,232) $ (36,274) $ (4,324) $ 80,229
Net realized gain on investments .......... 3,628,512 4,609,662 2,146,579 3,283,752
Net change in unrealized appreciation
(depreciation) on investments ...... 3,911,505 13,604,001 2,071,270 4,939,032
------------ ------------ ------------ ------------
Increase in net assets .................... 7,477,785 18,177,389 4,213,525 8,303,013
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................ 0 (44,687) 0 (143,381)
From net realized gains ................... (4,536,145) (4,293,833) (3,271,583) (1,856,932)
------------ ------------ ------------ ------------
Total distributions ....................... (4,536,145) (4,338,520) (3,271,583) (2,000,313)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ................. 9,606,190 10,636,821 9,767,589 4,238,113
Reinvestment of dividends ................. 4,489,221 4,310,469 3,167,253 1,970,599
Amount paid for repurchase of shares ...... (10,338,029) (8,966,670) (5,393,973) (4,741,419)
------------ ------------ ------------ ------------
Net increase (decrease) from capital
transactions ........................... 3,757,382 5,980,620 7,540,869 1,467,293
------------ ------------ ------------ ------------
Total increase (decrease) in net assets ... 6,699,022 19,819,489 8,482,811 7,769,993
NET ASSETS
Beginning of period ....................... 77,017,406 57,197,917 30,840,846 23,070,853
------------ ------------ ------------ ------------
End of period ............................. $ 83,716,428 $ 77,017,406 $ 39,323,657 $ 30,840,846
============ ============ ============ ============
Accumulated undistributed (distributions in
excess of) net investment income included
in net assets at end of period ......... $ (91,388) $ (91,388) $ (27,435) $ (27,435)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Shares sold ............................... 504,137 639,390 560,429 263,198
Shares issued on reinvestment
of dividends ........................... 241,486 279,447 191,490 138,855
Shares repurchased ........................ (543,733) (529,296) (313,499) (298,742)
------------ ------------ ------------ ------------
Net increase (decrease) from capital
transactions ........................... 201,890 389,541 438,420 103,311
============ ============ ============ ============
<CAPTION>
FAIRPORT GOVERNMENT
SECURITIES FUND
- -------------------------------------------------------------------------
Six Months Year
Ended Ended
4/30/98 10/31/97
(unaudited)
- -------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income (loss) .............. $ 110,604 $ 235,639
Net realized gain on investments .......... 10,193 4,611
Net change in unrealized appreciation
(depreciation) on investments ...... (2,003) 60,694
------------ ------------
Increase in net assets .................... 118,794 300,944
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................ (110,604) (235,639)
From net realized gains ................... 0 0
------------ ------------
Total distributions ....................... (110,604) (235,639)
------------ ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ................. 1,289,316 1,409,959
Reinvestment of dividends ................. 89,136 231,250
Amount paid for repurchase of shares ...... (1,174,521) (3,048,010)
------------ ------------
Net increase (decrease) from capital
transactions ........................... 203,931 (1,406,801)
------------ ------------
Total increase (decrease) in net assets ... 212,121 (1,341,496)
NET ASSETS
Beginning of period ....................... 4,410,804 5,752,300
------------ ------------
End of period ............................. $ 4,622,925 $ 4,410,804
============ ============
Accumulated undistributed (distributions in
excess of) net investment income included
in net assets at end of period ......... $ 0 $ 0
------------ ------------
CAPITAL SHARE TRANSACTIONS
Shares sold ............................... 129,420 144,935
Shares issued on reinvestment
of dividends ........................... 8,961 23,788
Shares repurchased ........................ (118,348) (313,081)
------------ ------------
Net increase (decrease) from capital
transactions ........................... 20,033 (144,358)
============ ============
=========================================================================
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 14
F A I R P O R T F U N D S
- --------------------------------------------------------------------------------
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 Year Period
Ended Ended Ended Ended Ended Ended
4/30/98 10/31/97 10/31/96 10/31/95 10/31/94 10/31/93(1)
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period ................ $ 18.88 $ 15.50 $ 13.55 $ 12.27 $ 11.07 $ 10.00
------- ------- ------- ------- ------- -------
Income from Investment Operations
Net investment income (loss) ........................ (0.01) (0.01) 0.02 0.04 0.02 0.01
Net realized and unrealized gain (loss)
on investments ................................. 1.79 4.55 2.16 2.04 1.19 1.07
------- ------- ------- ------- ------- -------
Total from investment operations .............. 1.78 4.54 2.18 2.08 1.21 1.08
------- ------- ------- ------- ------- -------
Less Distributions
From net investment income .......................... 0.00 (0.01) (0.03) (0.04) (0.01) (0.01)
From realized capital gains ......................... (1.10) (1.15) (0.20) (0.76) 0.00 0.00
------- ------- ------- ------- ------- -------
Total distributions ........................... (1.10) (1.16) (0.23) (0.80) (0.01) (0.01)
------- ------- ------- ------- ------- -------
Net Asset Value, end of period ...................... $ 19.56 $ 18.88 $ 15.50 $ 13.55 $ 12.27 $ 11.07
======= ======= ======= ======= ======= =======
Total Return ........................................ 9.72%** 31.00% 16.28% 18.17% 10.89% 10.90%**
Ratios/Supplemental Data
Net assets, end of period (000) ..................... $83,716 $77,017 $57,198 $49,408 $29,688 $ 9,870
Ratio of expenses to average net assets
before reimbursement of expenses
by Adviser .................................... 1.43%* 1.58% 1.69% 1.57% 1.54% 2.89%*
after reimbursement of expenses
by Adviser .................................... 1.38%* 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 .................................... (0.20%)* (0.25%) (0.16%) 0.14% 0.08% (1.11%)*
after reimbursement of expenses
by Adviser .................................... (0.15%)* (0.05%) 0.15% 0.29% 0.17% 0.28%*
Portfolio turnover .................................. 21.35% 41.16% 58.01% 46.51% 77.57% 0.00%
Average commission rate paid ........................ $0.0591 $0.0499 $0.0600 N/A N/A N/A
=========================================================================================================================
</TABLE>
* Annualized
*** Rounds to less than $.01
See accompanying notes to financial statements.
N/A Not applicable; disclosure not required
12
<PAGE> 15
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FAIRPORT GROWTH AND INCOME FUND
- ------------------------------------------------------------------------------------------------------------------
Six Months Year Year Year Year Period
Ended Ended Ended Ended Ended Ended
4/30/98 10/31/97 10/31/96 10/31/95 10/31/94 10/31/93(1)
(unaudited)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period ............ $ 17.87 $ 14.22 $ 12.29 $ 10.68 $ 10.36 $ 10.00
------- ------- ------- ------- ------- -------
Income from Investment Operations
Net investment income (loss) ................... 0.00*** 0.05 0.13 0.15 0.14 0.04
Net realized and unrealized gain (loss)
on investments ............................ 2.14 4.83 2.04 1.68 0.35 0.36
------- ------- ------- ------- ------- -------
Total from investment operations ......... 2.14 4.88 2.17 1.83 0.49 0.40
------- ------- ------- ------- ------- -------
Less Distributions
From net investment income ..................... 0.00 (0.09) (0.14) (0.12) (0.14) (0.04)
From realized capital gains .................... (1.84) (1.14) (0.10) (0.10) (0.03) 0.00
------- ------- ------- ------- ------- -------
Total distributions ...................... (1.84) (1.23) (0.24) (0.22) (0.17) (0.04)
------- ------- ------- ------- ------- -------
Net Asset Value, end of period ................. $ 18.17 $ 17.87 $ 14.22 $ 12.29 $ 10.68 $ 10.36
======= ======= ======= ======= ======= =======
Total Return ................................... 12.97%** 36.61% 17.77% 17.36% 4.72% 3.98%**
Ratios/Supplemental Data
Net assets, end of period (000) ................ $39,324 $30,841 $23,071 $23,082 $18,177 $ 8,716
Ratio of expenses to average net assets
before reimbursement of expenses
by Adviser ............................... 1.52%* 1.76% 1.83% 1.79% 1.72% 2.79%*
after reimbursement of expenses
by Adviser ............................... 1.48%* 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 ............................... (0.07%)* 0.03% 0.58% 0.98% 1.20% 0.10%*
after reimbursement of expenses
by Adviser ............................... (0.03%)* 0.29% 0.91% 1.26% 1.42% 1.39%*
Portfolio turnover ............................. 17.91% 42.45% 34.02% 13.36% 35.16% 4.18%
Average commission rate paid ................... $0.0606 $0.0599 $0.0591 N/A N/A N/A
====================================================================================================================
<CAPTION>
FAIRPORT GOVERNMENT SECURITIES FUND
- -----------------------------------------------------------------------------------------------------------------------
Six Months Year Year Year Year Period
Ended Ended Ended Ended Ended Ended
4/30/98 10/31/97 10/31/96 10/31/95 10/31/94 10/31/93(1)
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period ............... $ 9.90 $ 9.75 $ 9.84 $ 9.03 $ 10.20 $ 10.00
------- ------- ------- ------- ------- -------
Income from Investment Operations
Net investment income (loss) ....................... 0.24 0.49 0.49 0.49 0.43 0.15
Net realized and unrealized gain (loss)
on investments ................................ 0.03 0.15 (0.05) 0.81 (1.17) 0.16
------- ------- ------- ------- ------- -------
Total from investment operations ............. 0.27 0.64 0.44 1.30 (0.74) 0.31
------- ------- ------- ------- ------- -------
Less Distributions
From net investment income ......................... (0.24) (0.49) (0.53) (0.49) (0.42) (0.11)
From realized capital gains ........................ 0.00 0.00 0.00 0.00 (0.01) 0.00
------- ------- ------- ------- ------- -------
Total distributions .......................... (0.24) (0.49) (0.53) (0.49) (0.43) (0.11)
------- ------- ------- ------- ------- -------
Net Asset Value, end of period ..................... $ 9.93 $ 9.90 $ 9.75 $ 9.84 $ 9.03 $ 10.20
======= ======= ======= ======= ======= =======
Total Return ....................................... 2.79%** 6.76% 4.58% 14.76% (7.24%) 3.04%**
Ratios/Supplemental Data
Net assets, end of period (000) .................... $ 4,623 $ 4,411 $ 5,752 $ 8,647 $ 7,614 $ 5,829
Ratio of expenses to average net assets
before reimbursement of expenses
by Adviser ................................... 2.31%* 2.70% 2.05% 2.16% 1.80% 2.78%*
after reimbursement of expenses
by Adviser ................................... 0.90%* 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 ................................... 3.56%* 3.23% 3.78% 3.89% 3.88% 2.29%*
after reimbursement of expenses
by Adviser ................................... 4.97%* 5.03% 4.93% 5.16% 4.78% 4.17%*
Portfolio turnover ................................. 57.68% 21.01% 21.23% 1.28% 24.14% 24.53%
Average commission rate paid ....................... N/A N/A N/A N/A N/A N/A
=======================================================================================================================
</TABLE>
(1) The Fairport Midwest Growth Fund, Fairport Growth and Income Fund and ** Not
annualized Fairport Government Securities Fund commenced operations on July 1,
1993.
13
<PAGE> 16
F A I R P O R T F U N D S
- --------------------------------------------------------------------------------
(Unaudited) April 30, 1998
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 conformity 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 institutions 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 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.
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 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.
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 until further written notice 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.
15
<PAGE> 18
F A I R P O R T F U N D S NOTES TO FINANCIAL STATEMENTS (CONT.)
- --------------------------------------------------------------------------------
(Unaudited) April 30, 1998
Information regarding these transactions is as follows for the six month period
ended April 30, 1998:
<TABLE>
<CAPTION>
Midwest Growth and
Growth Income Government
Fund Fund Fund
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Fees before fee waiver ............ $ 302,252 $ 128,625 $ 5,583
Fees waived ....................... (17,348) (8,053) (5,583)
Rule 12b-1 fees ................... 99,542 42,360 5,516
Other expenses
reimbursed ...................... 0 0 (25,820)
Net fees and expenses ............. 384,446 162,932 (20,304)
- ----------------------------------------------------------------------------
</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 serve 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, 1998 were:
<TABLE>
<CAPTION>
Proceeds
Purchases from Sales
(000) (000)
- ----------------------------------------------------------------------------
<S> <C> <C>
Midwest Growth Fund ............... $ 16,954 $ 18,755
Growth and Income Fund ............ 10,791 6,063
Government Fund ................... 2,725 2,501
- ----------------------------------------------------------------------------
</TABLE>
NOTE (D) UNREALIZED APPRECIATION
AND DEPRECIATION:
At April 30, 1998, 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 ............... $ 28,906 $ (1,250) $ 27,656
Growth and Income Fund ............ 12,221 (145) 12,076
Government Fund ................... 64 (5) 59
- ----------------------------------------------------------------------------
</TABLE>
16
<PAGE> 19
[FAIRPORT FUNDS LOGO]
4000 Chester Avenue
Cleveland, Ohio 44103
1-800-332-6459
Directors:
Thomas V. Chema
David B. Gale
David H. Gunning
Scott D. Roulston
Ivan Winfield
Officers:
Scott D. Roulston, President
Kevin M. Crotty, Treasurer
Charles A. Kiraly, Secretary
Adviser:
Roulston & Company, Inc.
4000 Chester Avenue
Cleveland, Ohio 44103
Distributor:
Roulston Research Corp.
4000 Chester Avenue
Cleveland, Ohio 44103
Administrator & Transfer Agent:
First Data Investor Services Group, 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.
