<PAGE> 1
ROULSTON FUNDS
Charting A Course You Can Trust(SM)
[GRAPHIC] SEMI-ANNUAL REPORT TO
SHAREHOLDERS
[ICON] ROULSTON EMERGING GROWTH FUND
[ICON] ROULSTON INTERNATIONAL EQUITY FUND
[ICON] ROULSTON GROWTH FUND
[ICON] ROULSTON GROWTH AND INCOME FUND
[ICON] ROULSTON GOVERNMENT SECURITIES FUND
APRIL 30, 2000
ADVISED BY
ROULSTON & COMPANY, INC.
==============================================================================
<PAGE> 2
ROULSTON FUNDS SEMI-ANNUAL REPORT TO SHAREHOLDERS
June 5, 2000
Dear Shareholder:
Enclosed is the Roulston Funds' semi-annual financial report for the six-month
period ended April 30, 2000. We are proud to report the Funds' performance
during this period:
<TABLE>
<S> <C>
Roulston Government Securities Fund +0.42%
Roulston Growth and Income Fund -4.14%
Roulston Growth Fund +20.83%
Roulston International Equity Fund +20.62%
Roulston Emerging Growth Fund +67.43%
</TABLE>
The addition of the Roulston Emerging Growth Fund and the Roulston International
Equity Fund, introduced on July 1, 1999, along with enhancements made to the
Growth, Government Securities, and Growth and Income Funds over the past year,
reflect our commitment to shareholders that the Roulston Funds are positioned to
provide performance, investment diversity and balance in your investment
options, now and well into the future.
The investment world has changed dramatically in recent months. Previously, the
Federal Reserve was concerned about "irrational exuberance" on the part of
investors. Now the shoe is on the other foot; investors are now concerned that
Greenspan and company may show "irrational exuberance" in raising interest rates
and put an abrupt end to the longest economic expansion in U.S. history.
The real world stories we are hearing from clients suggest that higher interest
rates have begun to slow down new home and car sales. The great fear is that
additional interest rate hikes in conjunction with a lower stock market could
produce a pronounced slow down in economic activity. The Federal Reserve
definitely has captured everyone's attention. A soft landing is a possibility
but it will be difficult to engineer. The new economy is evolving rapidly and
the Federal Reserve does not have the historical benchmarks for assessing its
performance.
The volatility that we have experienced recently in the equity markets has been
remarkable. We would like to remind our shareholders that diversification is the
best long-term tool for dealing with these markets.
<TABLE>
<S> <C>
/s/ Scott D. Roulston /s/ Howard W. Harpster
Scott D. Roulston Howard W. Harpster
President Chief Investment Officer
</TABLE>
<PAGE> 3
ROULSTON FUNDS INVESTMENT ADVISER'S REPORT
ROULSTON EMERGING GROWTH FUND
The graph below compares the increase in value of a $10,000 investment in the
Roulston Emerging Growth Fund with the performance of the Russell 2000 Growth
Index.
[Graph]
ROULSTON EMERGING GROWTH FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
AGGREGATE TOTAL RETURN*
Since Inception.............223.64%
For the period ended 4/30/00
Fund Inception: 7/1/99
<TABLE>
<CAPTION>
ROULSTON EMERGING GROWTH FUND RUSSELL 2000 GROWTH INDEX
----------------------------- -------------------------
<S> <C> <C>
7/01/99 $10000.00 $10000.00
7/99 12850.00 9691.00
10/99 19330.00 9752.00
1/00 32127.00 12566.00
4/00 32364.00 12462.00
</TABLE>
*Unlike our fund, the Russell 2000 Growth Index does not reflect fees
and expenses and is an unmanaged indicator of financial performance, as
such, it is not sold as an investment. Past performance is no guarantee
of future results. The principal value and return of a mutual fund
investment fluctuates with changes in market conditions. Shares, when
redeemed, may be worth more or less than the original cost.
The Roulston Emerging Growth Fund invests in rapidly growing companies that have
recently gone public. In almost all cases, companies will have received venture
capital financing during the early stage of their development.
The Fund's primary objective is capital appreciation and returns may be quite
volatile because the companies and the markets they operate in tend to be
growing and evolving at a very rapid pace. In addition, their competitors for
these new markets may be bigger, better known companies that have far larger
financial resources.
The Roulston Emerging Growth Fund has benefited from the strong demand for
initial public offerings from telecommunications and Internet related technology
companies. The recent sharp downturn in the NASDAQ has put a damper on the
initial public offerings marketplace and it is unlikely that the outsized gains
generated from this sector will return in the near future. We anticipate that
the window for initial public offerings will be largely closed except for the
very best deals.
As a result, we will take advantage of the large supply overhang that exists
related to companies that went public 6 to 9 months ago. We know that venture
capitalists and other large holders of the shares are motivated sellers and are
no longer restricted from selling their low-priced shares by the underwriter's
lock-up agreement. In many cases, the insiders have holdings that exceed the
public share float by a factor of 5 or 6 times and they can have a drastic
impact on the share price if they try to sell at the same time. We will be
looking for these buying opportunities in sound companies that have gone public
in the past year.
In general, large hedge funds are now out of emerging growth stocks. The
leveraged liquidity that they provided fueled much of the surge in the upside
this past winter and the forced unwinding of their positions helped create the
extreme downside volatility that has occurred in the NASDAQ this spring. The
NASDAQ is in the process of finding a new equilibrium in the aftermath of the
dotcom mania. In the meantime, the Internet infrastructure buildout continues.
The wireless revolution has picked up more momentum, and the demand for
semiconductor components exceeds supply. Our future investments will emphasize
the companies in these businesses.
1
<PAGE> 4
ROULSTON FUNDS
ROULSTON INTERNATIONAL EQUITY FUND
The graph below compares the increase in value of a $10,000 investment in the
Roulston International Equity Fund with the performance of the MS CI EAFE +
Canada IX Index.
[Line Graph]
ROULSTON INTERNATIONAL EQUITY FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
AGGREGATE TOTAL RETURN*
Since Inception.............23.39%
For the period ended 4/30/00
Fund Inception: 7/1/99
<TABLE>
<CAPTION>
ROULSTON INTERNATIONAL FUND MS CI EAFE + CANADA IX
--------------------------- ----------------------
<S> <C> <C>
7/01/99 $10000 $10000
7/99 9760 10276
10/99 10230 10786
1/00 12169 11416
4/00 12339 11555
</TABLE>
*Unlike our fund, the MS CI EAFE + Canada IX Index does not reflect fees
and expenses and is an unmanaged indicator of financial performance, as
such, it is not sold as an investment. Past performance is no guarantee
of future results. The principal value and return of a mutual fund
investment fluctuates with changes in market conditions. Shares, when
redeemed, may be worth more or less than the original cost.
The Roulston International Equity Fund seeks to achieve long-term capital
appreciation by investing in the equity securities of non-U.S. companies.
The Fund focuses primarily on companies headquartered in developed markets such
as Western Europe, Japan, Australia, Singapore and Hong Kong. The Fund primarily
invests in common stocks that are represented by American Depository Receipts of
"ADRs." ADRs trade in U.S. dollars on national exchanges (such as the New York
Stock Exchange) and in the over-the-counter markets (such as NASDAQ).
Our investment strategy seeks companies that could be considered to be
competitively dominant in their markets. Philips Electronics is a good example
of this investment strategy. Philips, headquartered in Eindhoven, Netherlands,
is the largest electronics company in Europe. The company has undergone a
significant restructuring over the past few years and is now well-positioned to
take advantage of its competitive strengths in the rapidly growing markets for
consumer electronics.
We also invest in companies of industries that are consolidating. Total Fina and
Elf Aquitaine are examples of this strategy. The Elf Aquitaine purchase by Total
Fina makes it the fourth-largest private oil company in the world behind Exxon
Mobil, Royal Dutch and BP Amoco. The combination of these two French oil
companies provides them the financial size to compete with the other industrial
behemoths in the global energy markets.
The Fund is well diversified with investments in 89 companies and 16 different
developed markets. So far in 2000, international equity investments have been
negatively impacted by the strength of the U.S. dollar relative to other
currencies. This currency drag probably will continue as long as markets
overseas believe the Federal Reserve is going to continue raising U.S. interest
rates.
2
<PAGE> 5
INVESTMENT ADVISER'S REPORT
ROULSTON GROWTH FUND
The graph below compares the increase in value of a $10,000 investment the
Roulston Growth Fund with the performance of the Standard & Poor's 500 Stock and
the Russell 1000 Growth Indices.
[Line Graph]
ROULSTON GROWTH FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN*
1 Year.....................16.18%
5 Years....................10.95%
Since Inception............12.53%
For the period ended 4/30/00
Fund Inception: 7/1/93
<TABLE>
<CAPTION>
STANDARD & POOR'S 500
ROULSTON GROWTH FUND RUSSELL 1000 GROWTH INDEX STOCK INDEX
-------------------- ------------------------- ---------------------
<S> <C> <C> <C>
7/01/93 $10000 $10000 $10000
7/31/93 10200 9821 9970
10/31/99 11090 10430 10480
1/94 11730 10784 10862
4/94 11847 10124 10241
7/94 11796 10314 10482
10/94 12298 10993 10880
1/95 12222 11051 10914
4/95 13327 12110 12019
7/95 14950 13557 13207
10/95 14532 14207 13750
1/96 14514 15340 15127
4/96 16584 16053 15641
7/96 15785 15661 15385
10/96 16897 17339 17054
1/97 18638 19558 19107
4/97 18404 19594 19563
7/97 22065 23782 23395
10/97 22135 22623 22528
1/98 22374 24561 24243
4/98 24286 27842 27592
7/98 22970 28518 27911
10/98 20425 28198 27475
1/99 20965 35021 32113
4/99 19292 35227 33611
7/99 18652 35374 33544
10/99 18550 37855 35827
1/00 19381 43635 36758
4/00 22414 46711 38390
</TABLE>
*Unlike our fund, the Standard and Poor's Stock and the Russell 1000
Growth Indices do not reflect fees and expenses and are unmanaged
indicators of financial performance, as such, they are not sold as
investments. Past Performance is no guarantee of future results. The
principal value and return of a mutual fund investment fluctuates with
changes in market conditions. Shares, when redeemed, may be worth more
or less than the original cost. The Fund has selected the Russell 1000
Growth Index to replace the Standard and Poor's Stock Index as the
fund's proper benchmark, because the Russell index is considered a
widely used and more appropriate index for the fund.
The Roulston Growth Fund seeks capital appreciation by investing in companies
typically experiencing an improvement in profitability or an acceleration in
earnings growth relative to their history or to other companies. We buy the
specific stocks if this improvement is not yet fully reflected in the stock
price, which is determined by examining the P/E ratio compared to the market and
the history of that relationship.
The greatest investment by the Fund in an economic sector is in technology. As
identified in the Russell 1000 benchmark, stocks in this sector approximated 47%
of the Fund at the end of April, slightly more than the 44% weighting in the
Russell Index. The next largest sector was healthcare. At 18%, our weighting
also slightly exceeded the benchmark index, which was at 15%. Of course, the
amounts invested in specific sectors may vary considerably over the course of a
year.
The five largest holdings by market value were ADC Telecom, Pfizer, General
Electric, Paychex, and Analog Devices. Briefly, we note that ADC Telecom
provides products that enable communication service providers to connect with
end-user homes and businesses. Currently, the general area of this link is
considered a bottleneck restraining the delivery of data, voice, video, and
Internet services to users. The Company's "last mile" leadership should result
in robust sales for several years as providers such as telephone companies and
cable companies attempt to step-up offerings to consumers. Pfizer is a preferred
pharmaceutical company since the merger with Warner Lambert could accelerate
earnings growth from about 18% to 25%. G.E. is owned in view of the acceleration
of their projected growth rate from 10% to 15%. Paychex is known for the
payroll-processing services it provides to small businesses, but, also, has
expanded its offerings to include human resource services. Analog Devices is a
semiconductor company which makes linear, mixed-signal, and digital integrated
circuits which are important in wireless and central office/network access
applications.
Overall, the typical company owned in the Fund could see earnings increase about
25% in 2000 compared with 1999 and about 22% a year over the next five years.
The P/E ratio based on projected earnings for 2000 would approximate 37 compared
with about 25 for the Standard and Poor's 500 Index.
3
<PAGE> 6
ROULSTON FUNDS
ROULSTON GROWTH AND INCOME FUND
The graph below compares the increase in value of a $10,000 investment in the
Roulston Growth and Income Fund with the performance of the Standard & Poor's
500 Stock and the Russell 1000 Value Indices.
[Line Graph]
ROULSTON GROWTH & INCOME FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN*
1 Year.....................(14.28)%
5 Years.....................10.39%
Since Inception.............10.07%
For the period ended 4/30/00
Fund Inception: 7/1/93
<TABLE>
<CAPTION>
ROULSTON GROWTH AND STANDARD & POOR'S 500
INCOME FUND RUSSELL 1000 VALUE INDEX STOCK INDEX
------------------- ------------------------ ---------------------
<S> <C> <C> <C>
7/01/93 $10000 $10000 $10000
7/93 10030 10112 9970
10/93 10398 10486 10480
1/94 10894 10861 10862
4/94 10682 10293 10241
7/94 10900 10478 10482
10/94 10889 10567 10880
1/95 10940 10573 10914
4/95 11746 11587 12019
7/95 12541 12664 13207
10/95 12780 13175 13750
1/96 14075 14632 15127
4/96 14149 15051 15641
7/96 13749 14676 15385
10/96 15051 16302 17054
1/97 16558 18098 19107
4/97 17167 18447 19563
7/97 20353 21841 23395
10/97 20560 21712 22528
1/98 20900 23004 24243
4/98 23227 26228 27592
7/98 21437 25709 27911
10/98 20312 24931 27475
1/99 21525 27196 32113
4/99 22471 29924 33611
7/99 22822 29562 33544
10/99 20094 29053 35827
1/00 18773 28019 36758
4/00 19262 28764 38390
</TABLE>
* Unlike our fund, the Standard & Poor's Stock and the Russell 1000
Value Indices do not reflect fees and expenses and are unmanaged
indicators of financial performance, as such, they are not sold as
investments. Past Performance is no guarantee of future results. The
principal value and return of a mutual fund investment fluctuates with
changes in market conditions. Shares, when redeemed, may be worth more
or less than the original cost. The Fund has selected the Russell 1000
Value Index to replace the Standard & Poor's Stock Index as the fund's
proper benchmark, because the Russell index is considered a widely used
and more appropriate index for the fund.
The Roulston Growth and Income Fund's objective is 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 growing
dividend-paying common stocks which have been researched by our own staff and
offer reasonable valuation based on price earnings, book value and cash flows.
The new portfolio management team has been adding more companies to the Fund
with the objective of positioning the portfolio more like its benchmark, the
Russell 1000 Value Index. To achieve this goal, the Fund will invest in more
stocks than it has in the past. The current portfolio is diversified among 48
stocks. We expect that the portfolio will have investments in between 45 and 55
companies.
Recent additions to the portfolio have included Hershey Foods and Eli Lilly.
Hershey is the largest U.S. producer of chocolate and nonchocolate confectionery
products. In 1999, Hershey's earnings declined for the first time since 1988 due
to problems with the implementation of a new computer system. The unexpected
fall in earnings caused the share price to drop to a level that was attractive
from an historical perspective. We purchased the stock when it became apparent
that management had the new computer system under control and product
distribution was beginning to return to normal.
Eli Lilly is a leading manufacturer and marketer of pharmaceutical and animal
health products. The company has a strong research and development product
pipeline and its stock usually sells at a premium to the market because of its
good growth prospects. We were able to purchase the stock at below market
multiple when the debate and publicity over the possible Medicare outpatient
drug benefit program put pressure on the stock price.
The Fund continues to have large sector weightings in financial services, energy
and utilities. We believe that these defensive holdings should do relatively
well in a volatile market environment.
4
<PAGE> 7
INVESTMENT ADVISER'S REPORT
ROULSTON GOVERNMENT SECURITIES FUND
The graph below compares the increase in value of a $10,000 investment in the
Roulston Government Securities Fund with performance of the Merrill Lynch
Intermediate Treasury Bond and the Lehman U.S. Government/Corporate Intermediate
Bond Indices.
[Line Graph]
ROULSTON GOVERNMENT SECURITIES FUND: GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN*
1 Year.....................(.50)%
5 Years....................5.53%
Since Inception............4.28%
For the period ended 4/30/00
Fund Inception: 7/1/93
<TABLE>
<CAPTION>
ROULSTON GOVERNMENT MERRILL INTERMEDIATE LEHMAN INTERMEDIATE
SECURITIES FUND TREASURY BOND INDEX TREASURY BOND INDEX
------------------- -------------------- -------------------
<S> <C> <C> <C>
7/01/93 $10000 $10000 $10000
7/93 10000 10021 10024
10/93 10304 10235 10253
1/94 10346 10328 10356
4/94 9649 9970 9966
7/94 9748 10112 10118
10/94 9558 10064 10055
1/95 9733 10219 10142
4/95 10170 10591 10540
7/95 10628 10973 10932
10/95 10968 11262 11234
1/96 11350 11618 11600
4/96 10989 11396 11366
7/96 11093 11537 11512
10/96 11471 11886 11888
1/97 11545 12012 12014
4/97 11569 12098 12095
7/97 12046 12527 12556
10/97 12246 12757 12779
1/98 12575 13069 13078
4/98 12588 13154 13175
7/98 12810 13387 13403
10/98 13545 14008 13941
1/99 13546 14075 14073
4/99 13384 14003 14013
7/99 13193 13949 13902
10/99 13262 14109 13820
1/00 13092 14085 13740
4/00 13318 14085 13928
</TABLE>
*Unlike our fund, the Merrill Lynch Intermediate Treasury Bond Index and
the Lehman U.S. Government/Corporate Intermediate Bond Index do not
reflect fees and expenses and are unmanaged indicators of financial
performance, as such, they are not sold as investments. Past Performance
is no guarantee of future results. The principal value and return of a
mutual fund investment fluctuates with changes in market conditions.
Shares, when redeemed, may be worth more or less than the original cost.
The Fund has selected the Lehman U.S. Government/Corporate Intermediate
Bond Index to replace the Merrill Lynch Intermediate Treasury Bond Index
as the fund's proper benchmark, because the Lehman U.S.
Government/Corporate Intermediate Bond Index is considered a widely used
and more appropriate index for the fund, which intends to additionally
invest in Corporate Bond issues on a limited basis.
In order to meet its objective of current income with preservation of capital,
the Roulston Government Securities Fund seeks to complement the equity funds
through investments in a broad range of investment grade or comparable quality
fixed income securities. The Fund will further minimize credit risk by normally
having at least 65% of its assets invested in securities issued or guaranteed by
the US Government or its agencies and instrumentalities. While changes in
interest rates affect the Fund's holdings, the primary focus of the portfolio is
to provide a strategy that reflects the use of quantitative analysis, changing
market environments and infrastructure, and addresses the degree of risk and
yield necessary in preserving liquidity and safety of principal.
Since 1995 the Federal Reserve Board (FED) has maintained what economists refer
to as a gradualist approach. Many question whether each time they increased, or
for that matter decreased, the fed funds rate by a mere one quarter of a
percent, that such a move exerts any real influence on the economy. The economy,
as many have said then and now, is resilient to the level of interest rates
because of the technology revolution and it's collateral productivity growth.
For the most part, most people have been proven right. But the interest rate
markets haven't agreed and the divergence seems headed for a collision.
There are signs of inflation. In March consumer prices jumped 0.7 percent,
pushing the broad index (CPI) 3.7 percent above where it was a year earlier.
That's in contrast with an inflation rate of 2.7 percent in December and
January. And when volatile food and energy costs are excluded, as they
customarily are, overall prices still jumped 0.4 percent in March, propelling
the CPI to 2.4 percent, up from 1.9 percent in January. Most troubling of all is
the Employment Cost Index (ECI) which the FED has admitted is their most
reliable indicator of labor related inflation. Compensation per worker rose at a
4.2 percent annual rate in the first quarter, up 3.8 percent from the previous
quarter. In Europe and Asia concerns that FED would begin to raise interest
rates more aggressively at their May 16th meeting drove the dollar higher which
in turn drove the Euro lower and undermined European growth. The rise in short
term rates in the US is having concurrent effects on short term rates in Japan,
which in turn has threatened their own fragile recovery.
None of this is surprising to the capital markets. The domestic economy has
continued to charge ahead
5
<PAGE> 8
ROULSTON FUNDS INVESTMENT ADVISER'S REPORT
unabated, and the interest rate markets are reflecting this, particularly in the
front end of the yield curve. The equity markets are experiencing increased
price volatility, but the media paints this as nothing more than temporary
indigestion. There are no fears that the rise in interest rates will dampen
enthusiasm for equities any more than they will dampen economic growth. However,
should the FED decide to increase the fed funds rate by one half of a percentage
point it is interesting to note that it would be the first time they made a big
tightening move since February 1995. The move would also bring the fed funds
rate to 6.5 percent, the highest rate since January 1991. Knowing what the
equity and interest rate markets did during those periods suggests that it is
unwise to discount the FED.
The Fund entered the new year with this setting to consider. The volatility in
the equity markets has spilled over into the credit markets forcing credit
spreads much wider. As interest rates continue to rise in the face of continued
FED rate hikes companies are finding it harder to finance their debt needs at
advantageous rates. Even the commercial paper markets are digging into corporate
margins. With this backdrop in mind the Fund reduced it's holding of corporate
debt first by maintaining a corporate bond structure almost entirely of credits
no lower than single-A, and second by reducing the overall duration by one year.
This move reflects what historically has proven to be the most secure
environment for corporate bond investments while the FED is aggressively
tightening. The rise in rates has allowed the Fund to maintain parity with its
intended duration by extending maturities in the Treasury market where
intermediate, 5 to 10 year rates have risen dramatically as the yield curve has
flattened.
Overall, the Fund will continue to take advantage of moving out of current
positions into ones with higher coupons or higher yields, or if the FED
continues to aggressively tighten, both. This would leave the fund with an asset
mix favorable to a sustainable decline in yields.
6
<PAGE> 9
ROULSTON FUNDS SCHEDULE OF INVESTMENTS
ROULSTON EMERGING GROWTH FUND April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 100.41%
BUSINESS SERVICES -- 12.91%
BindView Development Corp. *......................... 5,000 $ 40,313
eSPEED, Inc. *....................................... 300 14,175
Flextronics International, Ltd. *.................... 12,000 843,000
Internet Capital Group, Inc. *....................... 3,000 127,125
MedicaLogic, Inc. *.................................. 9,000 104,625
net.Genesis Corp. *.................................. 1,400 18,025
Network Appliance, Inc. *............................ 14,000 1,035,125
Onvia.com, Inc. *.................................... 2,800 24,325
Pfsweb, Inc. *....................................... 500 5,500
Sapient Corp. *...................................... 3,000 237,562
SciQuest.com, Inc. *................................. 1,300 16,900
The Management Network Group, Inc. *................. 300 5,325
Witness Systems, Inc. *.............................. 3,500 46,156
-----------
2,518,156
------------------------------------------------------------------------------------------------------------------------------------
COMPUTER SYSTEMS, SOFTWARE & SERVICES -- 6.97%
ArrowPoint Communications, Inc. *.................... 300 29,400
Brocade Communications Systems, Inc. *............... 5,000 620,000
eMachines, Inc. *.................................... 400 3,425
Intraware, Inc. *.................................... 5,000 80,000
Lifeminders.com, Inc. *.............................. 400 17,750
McAfee.com Corp. *................................... 10,400 180,700
Numerical Technologies, Inc. *....................... 400 16,700
RSA Security, Inc. *................................. 7,000 410,812
-----------
1,358,787
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.02%
Luminant Worldwide Corp. *........................... 200 1,738
Snowball.com, Inc. *................................. 200 725
The Knot, Inc. *..................................... 300 1,650
-----------
4,113
------------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS -- 36.56%
Applied Micro Circuits Corp. *....................... 7,000 902,125
Broadcom Corp., Class A *............................ 6,000 1,034,250
C-Cube Microsytems, Inc. *........................... 10,000 642,500
Caliper Technologies Corp. *......................... 2,200 82,500
Chartered Semiconductor Manufacturing *.............. 2,500 218,438
Linear Technology Corp............................... 15,000 856,875
Maxim Integrated Products, Inc. *.................... 10,000 648,125
Molecular Devices Corp. *............................ 7,000 300,891
Nova Measuring Instruments Ltd. *.................... 300 4,312
PMC-Sierra, Inc. *................................... 5,000 959,375
PSi Technologies Holdings, Inc. *.................... 400 6,600
QLogic Corp. *....................................... 4,000 401,250
St Assembly Test Services Ltd. *..................... 200 8,338
</TABLE>
7
<PAGE> 10
ROULSTON FUNDS
ROULSTON EMERGING GROWTH FUND (CONT.) April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
ELECTRONICS (CONT.)
TriQuint Semiconductor, Inc. *....................... 7,000 $ 719,687
Viasystems Group, Inc. *............................. 400 6,375
Vitesse Semiconductor Corp. *........................ 5,000 340,313
-----------
7,131,954
------------------------------------------------------------------------------------------------------------------------------------
ENERGY -- 0.08%
Plug Power, Inc. *................................... 200 16,000
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE -- 19.19%
Aclara Biosciences, Inc. *........................... 750 28,594
Alkermes, Inc. *..................................... 6,000 319,500
ArthroCare Corp. *................................... 6,000 611,250
Aspect Medical Systems, Inc. *....................... 250 11,094
Chiron Corp. *....................................... 10,000 452,500
COR Therapeutics, Inc. *............................. 5,000 380,937
Coulter Pharmaceutical, Inc. *....................... 15,000 273,750
Gilead Sciences, Inc. *.............................. 5,000 270,938
Gliatech, Inc. *..................................... 1,000 15,250
IDEC Pharmaceuticals Corp. *......................... 4,000 256,000
Immunex Corp. *...................................... 15,000 590,625
IntraBiotics Pharmaceuticals, Inc. *................. 1,000 11,625
Vertex Pharmaceuticals, Inc. *....................... 10,000 522,500
-----------
3,744,563
------------------------------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.01%
Quotesmith.com, Inc. *............................... 300 1,031
------------------------------------------------------------------------------------------------------------------------------------
INTERNET RETAIL -- 0.11%
Ashford.com, Inc. *.................................. 1,500 5,438
ARTISTdirect, Inc. *................................. 500 2,375
FairMarket, Inc. *................................... 400 2,750
garden.com, Inc. *................................... 500 3,062
iGo Corp. *.......................................... 700 3,106
MotherNature.com, Inc. *............................. 400 1,050
SmarterKids.com, Inc. *.............................. 1,000 2,875
-----------
20,656
------------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE -- 13.27%
AGENCY.COM, Inc. *................................... 1,200 25,275
Agile Software Corp. *............................... 7,000 259,437
Caldera Systems, Inc. *.............................. 500 6,500
CMGI, Inc. *......................................... 2,145 152,831
Commerce One, Inc. *................................. 10,000 610,625
Digital Impact, Inc. *............................... 300 3,675
DigitalThink, Inc. *................................. 300 6,038
Eprise Corp. *....................................... 500 4,969
Etinuum, Inc. *...................................... 500 2,906
Extensity, Inc. *.................................... 300 3,675
Integrated Information Systems, Inc. *............... 500 3,406
</TABLE>
8
<PAGE> 11
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
INTERNET SOFTWARE (CONT.)
Kana Communications, Inc. *.......................... 5,600 $ 238,350
Landacorp, Inc. *.................................... 300 1,181
Loudeye Technologies, Inc. *......................... 3,200 56,400
Macromedia, Inc. *................................... 4,000 348,000
NDS Group plc *...................................... 1,000 56,500
Netpliance, Inc. *................................... 400 3,600
Portal Software, Inc. *.............................. 5,000 229,375
Rhythms NetConnections, Inc. *....................... 1,000 20,687
Scient Corp. *....................................... 10,000 540,000
Websense, Inc. *..................................... 400 13,000
XCare.net, Inc. *.................................... 500 2,937
-----------
2,589,367
------------------------------------------------------------------------------------------------------------------------------------
NETWORK SOFTWARE -- 4.27%
Documentum, Inc. *................................... 6,000 354,000
JNI Corp. *.......................................... 5,300 211,669
OTG Software, Inc. *................................. 500 11,000
Redback Networks, Inc. *............................. 3,000 238,125
Ulticom, Inc. *...................................... 300 9,900
Universal Access, Inc. *............................. 400 8,200
-----------
832,894
------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 6.55%
Apropos Technology, Inc. *........................... 300 3,375
AT&T Wireless Group *................................ 1,500 47,719
CIENA Corp. *........................................ 7,500 927,188
Critical Path, Inc. *................................ 5,000 290,625
GoAmerica, Inc. *.................................... 400 3,975
i3 Mobile, Inc. *.................................... 300 5,625
-----------
1,278,507
------------------------------------------------------------------------------------------------------------------------------------
VENTURE CAPITAL -- 0.47%
Brantley Capital Corp. *............................. 10,000 91,250
------------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- (COST $20,685,477)............ 19,587,278
------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.89%
UMB Bank, U.S. Treasury Notes, $959,000 par, 5.43% coupon,
due 5/1/00, dated 4/28/00, to be sold on 7/31/01 at
$955,432 (Cost $955,000)........................... 955,000 955,000
-----------
CASH AND EQUIVALENTS -- 1.38%
UMB Money Market Fiduciary 4.40%, 05/01/00........... 269,925 269,925
TOTAL INVESTMENTS -- 106.68% -- (COST $21,910,402 **)... 20,812,203
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS -- (6.68%)... (1,302,487)
-----------
NET ASSETS -- 100.00%................................ $19,509,716
===========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
** Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
9
<PAGE> 12
ROULSTON FUNDS
ROULSTON INTERNATIONAL EQUITY FUND April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 95.24%
AUSTRALIA -- 1.21%
BANKS -- 0.14%
National Australia Bank, Ltd.......................... 265 $ 18,070
National Australia Bank, Ltd.......................... 1,000 13,689
-----------
31,759
-----------
MANUFACTURING -- 0.51%
Broken Hill Proprietary Co., Ltd...................... 5,500 116,531
MULTI MEDIA -- 0.56%
The News Corp., Ltd................................... 2,500 128,594
-----------
276,884
------------------------------------------------------------------------------------------------------------------------------------
DENMARK -- 0.53%
BANKS -- 0.03%
Den Danske Bank....................................... 75 7,471
TELECOMMUNICATIONS -- 0.50%
Tele Danmark A/S...................................... 3,000 113,625
-----------
121,096
------------------------------------------------------------------------------------------------------------------------------------
FINLAND -- 1.67%
PAPER PRODUCTS -- 0.68%
UPM-Kymmene Oyj....................................... 6,000 156,375
TECHNOLOGY -- 0.99%
Nokia Oyj............................................. 4,000 227,500
-----------
383,875
------------------------------------------------------------------------------------------------------------------------------------
FRANCE -- 14.91%
COSMETICS -- 1.78%
L'Oreal SA............................................ 3,000 407,877
FOOD & BEVERAGES -- 1.82%
Danone................................................ 2,460 110,393
LVMH (Louis Vuitton Moet Hennessy).................... 3,500 308,875
-----------
419,268
-----------
HEALTHCARE SERVICES -- 1.93%
Aventis S.A........................................... 7,875 442,969
INSURANCE -- 2.00%
Axa................................................... 6,000 460,500
MULTIMEDIA -- 2.39%
Thomson Multimedia *.................................. 3,000 291,000
Vivendi............................................... 13,000 257,776
-----------
548,776
-----------
</TABLE>
10
<PAGE> 13
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
FRANCE (CONT.)
OIL / REFINING / MARKETING -- 2.92%
Bouygues Offshore S.A................................. 11,000 $ 240,625
Total Fina Elf........................................ 5,699 430,987
-----------
671,612
-----------
TECHNOLOGY -- 1.38%
Alcatel............................................... 7,000 318,063
-----------
TELECOMMUNICATIONS -- 0.69%
France Telecom S.A.................................... 1,000 158,937
-----------
3,428,002
------------------------------------------------------------------------------------------------------------------------------------
GERMANY -- 11.78%
AUTOMOBILES -- 0.50%
DaimlerChrysler AG.................................... 2,000 115,125
BANKS -- 3.37%
Commerzbank AG........................................ 6,000 227,449
Deutsche Bank AG...................................... 8,120 546,814
-----------
774,263
-----------
CHEMICALS -- 2.35%
BASF AG............................................... 225 9,749
Bayer AG.............................................. 5,185 215,217
Celanese AG *......................................... 27 543
Roche Holding AG...................................... 3,000 314,040
-----------
539,549
-----------
CONGLOMERATE -- 0.02%
RWE AG................................................ 140 4,516
MANUFACTURING -- 4.82%
Siemens AG............................................ 5,000 739,450
Veba AG............................................... 7,000 367,500
-----------
1,106,950
-----------
SOFTWARE -- 0.43%
SAP AG................................................ 2,000 98,250
TELECOMMUNICATIONS -- 0.29%
Deutsche Telekom AG................................... 1,000 67,500
-----------
2,706,153
------------------------------------------------------------------------------------------------------------------------------------
HONG KONG -- 2.54%
FINANCIAL SERVICES -- 2.54%
Hutchinson Whampoa Ltd................................ 8,000 582,874
------------------------------------------------------------------------------------------------------------------------------------
IRELAND -- 1.87%
HEALTHCARE SERVICES -- 1.87%
Elan Corp. plc *...................................... 10,000 428,750
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
ROULSTON FUNDS
ROULSTON INTERNATIONAL EQUITY FUND (CONT.) April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
ITALY -- 2.27%
OIL / REFINING / MARKETING -- 0.69%
ENI................................................... 3,060 $ 159,120
RETAILING -- 0.26%
Benetton Group SpA.................................... 1,624 60,799
TELECOMMUNICATIONS -- 1.32%
Telecom Italia SpA.................................... 2,125 303,609
-----------
523,528
------------------------------------------------------------------------------------------------------------------------------------
JAPAN -- 24.78%
AUTOMOBILES -- 5.69%
Honda Motor Co., Ltd.................................. 8,000 708,000
Toyota Motor Corp..................................... 6,000 599,625
-----------
1,307,625
-----------
CHEMICALS -- 0.05%
Fuji Photo Film....................................... 300 12,300
COSMETICS -- 0.08%
FANCL Corp............................................ 130 18,915
ELECTRONICS -- 3.35%
Hitachi, Ltd.......................................... 2,205 270,802
Kyocera Corp.......................................... 2,930 486,563
Nintendo Co., Ltd..................................... 660 13,741
-----------
771,106
-----------
FINANCIAL SERVICES -- 1.19%
Aiful Corp............................................ 375 37,809
The Bank of Tokyo-Mitsubishi, Ltd..................... 7,000 90,563
The Tokio Marine & Fire Insurance Co., Ltd............ 3,000 144,750
-----------
273,122
-----------
FOOD & BEVERAGES -- 0.98%
Ito-Yokado Co., Ltd................................... 3,000 218,813
Kirin Brewery Co., Ltd................................ 50 6,600
-----------
225,413
-----------
OFFICE / BUSINESS EQUIPMENT -- 1.57%
Canon, Inc............................................ 7,775 361,052
TECHNOLOGY -- 8.84%
Matsushita Electric Industrial Co., Ltd............... 2,100 559,650
NEC Corp.............................................. 2,200 299,337
Pioneer Corp.......................................... 10,000 270,000
Sony Corp............................................. 4,000 902,500
-----------
2,031,487
-----------
TELECOMMUNICATIONS -- 1.75%
Nippon Telegraph & Telephone Corp..................... 6,300 401,231
-----------
</TABLE>
12
<PAGE> 15
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
JAPAN (CONT.)
TRADING COMPANY -- 1.28%
Mitsui & Co., Ltd..................................... 2,000 $ 295,000
-----------
5,697,251
------------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS -- 9.30%
BANKS -- 1.49%
ING Groep N.V......................................... 6,250 343,359
CHEMICALS -- 0.40%
Akzo Nobel N.V........................................ 2,210 91,750
ELECTRONICS -- 3.26%
Koninklijke (Royal) Philips Electronics N.V........... 16,800 749,700
FOOD & BEVERAGES -- 0.03%
Unilever NV........................................... 142 6,470
INSURANCE -- 1.26%
Aegon N.V............................................. 4,000 289,500
OIL / REFINING / MARKETING -- 1.00%
Royal Dutch Petroleum Co.............................. 4,000 229,500
PUBLISHING -- 1.00%
Elsevier NV........................................... 8,000 159,000
Wolters Kluwer NV..................................... 3,000 70,968
-----------
229,968
-----------
TECHNOLOGY -- 0.42%
ASM Lithography Holding N.V. *........................ 2,400 96,000
TELECOMMUNICATIONS -- 0.44%
KPN NV................................................ 1,000 102,000
-----------
2,138,247
------------------------------------------------------------------------------------------------------------------------------------
NEW ZEALAND -- 0.74%
TELECOMMUNICATIONS -- 0.74%
Telecom of New Zealand................................ 5,000 169,688
------------------------------------------------------------------------------------------------------------------------------------
NORWAY -- 0.38%
MANUFACTURING -- 0.38%
Norsk Hydro ASA....................................... 2,330 86,210
------------------------------------------------------------------------------------------------------------------------------------
SINGAPORE -- 0.62%
BANKS -- 0.24%
DBS Group Holdings Ltd................................ 1,000 55,053
ELECTRONICS -- 0.38%
Chartered Semiconductor Manufacturing Ltd. *.......... 1,000 87,375
-----------
142,428
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
ROULSTON FUNDS
ROULSTON INTERNATIONAL EQUITY FUND (CONT.) April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
SPAIN -- 2.14%
BANKS -- 0.76%
Banco Bilbao Vizcaya S.A.............................. 12,000 $ 174,000
OIL / REFINING / MARKETING -- 0.22%
Repsol-YPF, S.A....................................... 2,420 49,912
TELECOMMUNICATIONS -- 0.58%
Telefonica S.A. *..................................... 2,021 133,891
UTILITIES -- 0.58%
Endesa S.A............................................ 6,355 134,249
-----------
492,052
------------------------------------------------------------------------------------------------------------------------------------
SWEDEN -- 2.71%
AUTO & TRUCKS -- 0.02%
Volvo AB.............................................. 180 4,309
TELECOMMUNICATIONS -- 2.69%
Telefonaktiebolaget LM Ericsson AB.................... 7,000 619,063
-----------
623,372
------------------------------------------------------------------------------------------------------------------------------------
SWITZERLAND -- 0.04%
FOOD & BEVERAGES -- 0.04%
Nestle SA............................................. 115 10,160
------------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM -- 17.75%
BANKS -- 3.10%
Barclays plc.......................................... 4,000 428,000
HSBC Holdings plc..................................... 4,970 284,222
-----------
712,222
-----------
CHEMICALS -- 0.30%
Imperial Chemical Industries plc...................... 2,000 69,500
FOOD & BEVERAGES -- 0.43%
Cadbury Schweppes plc................................. 500 13,406
Diageo plc............................................ 2,500 85,000
-----------
98,406
-----------
HEALTHCARE SERVICES -- 5.56%
AstraZeneca Group plc................................. 10,258 432,118
Glaxo Wellcome plc.................................... 6,500 408,281
SmithKline Beecham plc................................ 6,350 436,563
-----------
1,276,962
-----------
MEDIA -- 0.91%
Reuters Group plc..................................... 2,000 208,625
OIL / REFINING / MARKETING -- 3.42%
BP Amoco plc.......................................... 15,200 775,200
Shell Transport & Trading Co.......................... 220 10,615
-----------
785,815
-----------
</TABLE>
14
<PAGE> 17
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
UNITED KINGDOM (CONT.)
TELECOMMUNICATIONS -- 3.80%
British Telecommunications plc........................ 2,595 $ 474,885
Vodafone AirTouch plc................................. 8,500 399,500
-----------
874,385
-----------
TRANSPORTATION -- 0.23%
British Airways plc................................... 1,000 52,625
-----------
4,078,540
------------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- (COST $22,215,098)............. 21,889,110
------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.71%
Bank of New York, U.S. Treasury Bond, $835,000 par, 5.65%
coupon, due 5/1/00, dated 4/28/00, to be sold on 8/15/20
at $1,083,510 (Cost $1,083,000)..................... 1,083,000 1,083,000
-----------
CASH AND EQUIVALENTS -- 0.00%
Bank of New York Cash Reserve 4.80%, 05/01/00......... 746 746
-----------
TOTAL INVESTMENTS -- 99.95% -- (COST $23,298,844 **)... 22,972,856
-----------
CASH IN EXCESS OF LIABILITIES AND OTHER ASSETS -- 0.05%... 12,038
-----------
NET ASSETS -- 100.00%................................. $22,984,894
===========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
** Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
15
<PAGE> 18
ROULSTON FUNDS
ROULSTON GROWTH FUND April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 92.68%
COMPUTERS -- 2.16%
Dell Computer Corp.*........................... 7,200 $ 360,900
Hewlett-Packard Co............................. 2,500 337,500
-----------
698,400
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES -- 1.72%
Lowe's Companies, Inc.......................... 5,000 247,500
The Home Depot, Inc............................ 5,500 308,344
-----------
555,844
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES -- 1.10%
Jones Apparel Group, Inc.*..................... 12,000 356,250
------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED COMPANIES -- 11.04%
General Electric Co............................ 10,000 1,572,500
Honeywell International, Inc................... 14,000 784,000
Minnesota Mining and Manufacturing Co.......... 3,400 294,100
Tyco International, Ltd........................ 20,000 918,750
-----------
3,569,350
------------------------------------------------------------------------------------------------------------------------------------
FINANCE -- 2.92%
Citigroup, Inc................................. 8,400 499,275
Firstar Corp................................... 5,080 126,365
Freddie Mac.................................... 4,000 183,750
MBNA Corp...................................... 5,000 132,813
-----------
942,203
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE -- 18.43%
Baxter International, Inc...................... 11,000 716,375
Cardinal Health, Inc........................... 10,000 550,625
Elan Corp. plc *............................... 13,000 557,375
Johnson & Johnson.............................. 4,000 330,000
Medtronic, Inc................................. 5,000 259,687
Merck & Co., Inc............................... 5,500 382,250
Patterson Dental Co. *......................... 7,000 336,875
Pfizer, Inc.................................... 45,000 1,895,625
Stryker Corp................................... 12,900 927,188
-----------
5,956,000
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS/SERVICES -- 7.02%
Computer Sciences Corp.*....................... 4,000 326,250
Flextronics International Ltd.*................ 5,000 351,250
Lexmark International Group, Inc., Class A*.... 3,000 354,000
Paychex, Inc................................... 23,500 1,236,687
-----------
2,268,187
------------------------------------------------------------------------------------------------------------------------------------
MEDIA/ENTERTAINMENT -- 0.99%
Gannett Co., Inc............................... 5,000 319,375
------------------------------------------------------------------------------------------------------------------------------------
NETWORKING PRODUCTS -- 2.79%
Cisco Systems, Inc. *.......................... 13,000 901,266
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 19
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
OIL AND GAS EXTRACTION -- 0.43%
USX-Marathon Group............................. 6,000 $ 139,875
------------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 18.31%
Altera Corp.*.................................. 5,700 582,825
Analog Devices, Inc.*.......................... 14,000 1,075,375
Atmel Corp.*................................... 5,000 244,688
Dallas Semiconductor Corp...................... 7,400 317,737
Integrated Device Technology, Inc.*............ 5,000 240,313
Microchip Technology, Inc.*.................... 9,250 574,078
Motorola, Inc.................................. 4,500 535,781
Solectron Corp.*............................... 8,000 374,500
Texas Instruments, Inc......................... 3,500 570,062
Vishay Intertechnology, Inc.*.................. 8,000 671,000
Xilinx, Inc.*.................................. 10,000 732,500
-----------
5,918,859
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY -- 18.00%
ADC Telecommunications, Inc.*.................. 32,000 1,944,000
Adobe Systems, Inc............................. 5,500 665,156
America Online, Inc.*.......................... 11,000 657,938
Corning, Inc................................... 3,900 770,250
EMC Corp.*..................................... 5,600 778,050
International Business Machines Corp........... 3,900 435,338
Microsoft Corp.*............................... 5,000 348,750
Tellabs, Inc.*................................. 4,000 219,250
-----------
5,818,732
------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 7.77%
Broadwing, Inc.*............................... 8,500 240,656
Global Crossing, Ltd.*......................... 5,000 157,500
Lucent Technologies, Inc....................... 5,000 310,937
MCI WorldCom, Inc.*............................ 10,300 468,006
Nortel Networks Corp........................... 5,000 566,250
SDL, Inc.*..................................... 3,000 585,000
Sprint Corp.................................... 3,000 184,500
-----------
2,512,849
------------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- (COST $23,438,085)...... 29,957,190
------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 8.80%
UMB Bank, U.S. Treasury Notes, $2,855,000 par, 5.43%
coupon, due 5/1/00, dated 4/28/00, to be sold on 7/31/01
at $2,844,286 (Cost $2,843,000).............. 2,843,000 2,843,000
------------------------------------------------------------------------------------------------------------------------------------
CASH AND EQUIVALENTS -- 0.00%
UMB Money Market Fiduciary 4.40%, 05/01/00..... 46 46
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE> 20
ROULSTON FUNDS
ROULSTON GROWTH FUND (CONT.) April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
CALL OPTIONS -- 0.39%
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION STRIKE VALUE
CONTRACTS DATE PRICE (NOTE 1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AT&T Corp. 250 10/21/00 $50 $ 125,000
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TOTAL INVESTMENTS -- 101.87% -- (COST $26,572,506**)... 32,925,236
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS -- (1.87%).................................... (602,814)
-----------
NET ASSETS -- 100.00%.................................. $32,322,422
===========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
** Also represents cost for Federal income tax purposes.
See accompanying costs to financial statements.
18
<PAGE> 21
SCHEDULE OF INVESTMENTS
ROULSTON GROWTH AND INCOME FUND April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 97.50%
AUTO AND TRANSPORTATION -- 7.54%
Boeing Co............................................ 10,000 $ 396,875
Ford Motor Co........................................ 10,000 546,875
Southwest Airlines Co................................ 16,000 347,000
-----------
1,290,750
------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS -- 3.32%
Great Lakes Chemical Corp............................ 5,000 134,687
OM Group, Inc........................................ 4,000 184,000
Rohm and Haas Co..................................... 7,000 249,375
-----------
568,062
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES -- 1.53%
Avery Dennison Corp.................................. 4,000 262,500
------------------------------------------------------------------------------------------------------------------------------------
ENERGY -- 11.09%
Baker Hughes, Inc.................................... 10,000 318,125
BP Amoco plc......................................... 4,000 204,000
Chevron Corp......................................... 4,000 340,500
El Paso Energy Corp.................................. 2,500 106,250
PECO Energy Co....................................... 5,000 208,438
The Coastal Corp..................................... 5,000 250,937
Tidewater, Inc....................................... 8,000 238,000
USX-Marathon Group................................... 10,000 233,125
-----------
1,899,375
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL DEPOSITORIES -- 9.15%
Firstar Corp......................................... 25,000 621,875
J.P. Morgan & Co., Inc............................... 3,500 449,312
National City Corp................................... 5,000 85,000
Wells Fargo Co....................................... 10,000 410,625
-----------
1,566,812
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES -- 20.90%
American International Group, Inc.................... 4,000 438,750
Axa.................................................. 6,500 498,875
Citigroup, Inc....................................... 10,000 594,375
Marsh & McLennan Companies, Inc...................... 4,500 443,531
Merrill Lynch & Co., Inc............................. 4,500 458,719
Morgan Stanley Dean Witter & Co...................... 5,000 383,750
The Bank of New York Co., Inc........................ 10,000 410,625
The Chubb Corp....................................... 5,500 349,938
-----------
3,578,563
------------------------------------------------------------------------------------------------------------------------------------
FOOD AND BEVERAGE -- 1.06%
Hershey Foods Corp................................... 4,000 181,500
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE> 22
ROULSTON FUNDS
ROULSTON GROWTH AND INCOME FUND (CONT.) April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
HEALTH CARE -- 8.03%
American Home Products Corp.......................... 6,500 $ 365,219
Edwards Lifesciences Corp............................ 1,000 15,000
Eli Lilly and Co..................................... 7,000 541,187
Johnson & Johnson.................................... 5,500 453,750
-----------
1,375,156
------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING -- 6.48%
Dover Corp........................................... 7,000 355,687
Illinois Tool Works, Inc............................. 5,000 320,312
Minnesota Mining and Manufacturing Co................ 5,000 432,500
-----------
1,108,499
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS & PROCESSING -- 2.59%
Alcoa, Inc........................................... 4,000 259,500
International Paper Co............................... 5,000 183,750
-----------
443,250
------------------------------------------------------------------------------------------------------------------------------------
MEDIA/ENTERTAINMENT -- 1.68%
The New York Times Co................................ 7,000 288,313
------------------------------------------------------------------------------------------------------------------------------------
RETAIL -- 2.33%
Target Corp.......................................... 6,000 399,375
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY -- 5.81%
Dallas Semiconductor Corp............................ 7,000 300,563
Hewlett-Packard Co................................... 2,400 324,000
Motorola, Inc........................................ 3,100 369,094
-----------
993,657
------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 6.59%
ALLTEL Corp.......................................... 6,000 399,750
GTE Corp............................................. 5,500 372,625
U S WEST, Inc........................................ 5,000 355,938
-----------
1,128,313
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 23
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONT.)
UTILITIES -- 9.40%
Alliant Energy Corp........................................ 20,000 $ 600,000
Duke Energy Corp........................................... 9,000 517,500
Sprint Corp. *............................................. 8,000 492,000
-----------
1,609,500
------------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- (COST $15,737,213).................. 16,693,625
------------------------------------------------------------------------------------------------------------------------------------
CASH AND EQUIVALENTS -- 0.29%
UMB Money Market Fiduciary 4.40%, 05/01/00................. 49,459 49,459
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 97.79% -- (COST $15,786,672 **)....... 16,743,084
CASH IN EXCESS OF LIABILITIES AND OTHER ASSETS -- 2.21%.... 378,716
-----------
NET ASSETS -- 100.00%...................................... $17,121,800
===========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
** Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
21
<PAGE> 24
ROULSTON FUNDS
ROULSTON GOVERNMENT SECURITIES FUND April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FIXED INCOME SECURITIES -- 95.58%
CORPORATE BONDS -- 12.86%
AUTOMOTIVE -- 2.06%
DaimlerChrysler AG 7.13%, 04/10/03................. $1,000,000 $ 987,500
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES -- 1.04%
Leggett & Platt, Inc. 7.65%, 02/15/05.............. 500,000 500,000
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES -- 2.54%
Hasbro, Inc. 7.95%, 03/15/03....................... 250,000 248,750
Proctor & Gamble Co. 6.60%, 12/15/04............... 1,000,000 971,250
-----------
1,220,000
------------------------------------------------------------------------------------------------------------------------------------
FINANCE -- 3.61%
CIT Group, Inc. 7.13%, 10/15/04.................... 500,000 487,500
General Electric Capital Corp. 7.25%, 02/01/05..... 500,000 498,125
HSBC Finance Nederland B.V. 7.40%, 04/15/03........ 500,000 496,875
Wells Fargo Co. 7.20%, 05/01/03.................... 250,000 249,723
-----------
1,732,223
------------------------------------------------------------------------------------------------------------------------------------
MEDIA & ENTERTAINMENT -- 2.57%
Cox Enterprises, Inc. 8.00%, 02/15/07.............. 250,000 245,000
Times Mirror Co. 6.65%, 10/15/01................... 1,000,000 988,750
-----------
1,233,750
------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 1.04%
Vodafone AirTouch plc 7.63%, 02/15/05.............. 500,000 496,875
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS.............................. 6,170,348
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 7.70%
FEDERAL FARM CREDIT BANK -- 2.06%
6.75%, 01/13/03.................................... 1,000,000 988,419
------------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 3.61%
7.00%, 02/15/03.................................... 750,000 745,312
6.88%, 01/15/05.................................... 1,000,000 984,379
-----------
1,729,691
------------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 2.03%
6.50%, 08/15/04.................................... 1,000,000 971,577
------------------------------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS........... 3,689,687
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS -- 75.02%
U.S. TREASURY BILL -- 0.11%
0.00%, 09/21/00.................................... 52,000 50,800
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE> 25
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FIXED INCOME SECURITIES (CONT.)
U.S. TREASURY NOTES -- 74.91%
6.38%, 01/31/02..................................................... $1,500,000 $ 1,491,634
6.50%, 02/28/02..................................................... 3,000,000 2,988,443
6.25%, 02/15/03..................................................... 3,000,000 2,970,260
6.00%, 08/15/04..................................................... 3,000,000 2,937,985
6.50%, 05/15/05..................................................... 7,500,000 7,488,641
6.50%, 08/15/05..................................................... 7,500,000 7,481,083
6.88%, 05/15/06..................................................... 2,500,000 2,543,293
6.50%, 10/15/06..................................................... 3,000,000 2,996,425
6.00%, 08/15/09..................................................... 2,000,000 1,955,424
6.50%, 02/15/10..................................................... 3,000,000 3,058,660
-----------
35,911,848
------------------------------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS................................... 35,962,648
------------------------------------------------------------------------------------------------------------------------------------
TOTAL FIXED INCOME SECURITIES -- (COST $45,927,392)................. 45,822,683
------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.12%
UMB Bank, U.S. Treasury Notes, $1,526,000 par, 5.43% coupon,
due 5/1/00, dated 4/28/00, to be sold on 9/30/01 at
$1,497,677 (Cost $1,497,000).................................... 1,497,000 1,497,000
------------------------------------------------------------------------------------------------------------------------------------
CASH AND EQUIVALENTS -- 0.00%
UMB Money Market Fiduciary 4.40%, 05/01/00.......................... 647 647
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.70% -- (COST $47,425,039 **)................ 47,320,330
-----------
CASH IN EXCESS OF LIABILITIES AND OTHER ASSETS -- 1.30%............. 621,393
-----------
NET ASSETS -- 100.00%............................................... $47,941,723
===========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
** Also represents cost for Federal income tax purposes.
See accompanying notes to financial statements.
AT APRIL 30, 2000, THE FUND'S OPEN LONG POSITION FUTURES CONTRACTS WERE AS
FOLLOWS:
<TABLE>
<CAPTION>
NUMBER
OF
CONTRACTS CONTRACT EXPIRATION UNREALIZED
PURCHASED TYPE DATE APPRECIATION
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 U.S. Long Bond June 2000 $125
====
-----------------------------------------------------------------------------------------
</TABLE>
23
<PAGE> 26
ROULSTON FUNDS STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ROULSTON ROULSTON ROULSTON
EMERGING INTERNATIONAL GROWTH
GROWTH FUND EQUITY FUND FUND
------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments in securities at value (cost
$21,910,402, $23,298,844, $26,572,506,
$15,786,672 and $47,425,039,
respectively)......................... $20,812,203 $22,972,856 $32,925,236
Cash.................................... 0 0 0
Receivable for capital stock sold....... 32,833 50,000 587,626
Receivable for securities sold.......... 1,026,997 1,320,994 2,319,000
Dividends and interest receivable....... 1,951 30,799 6,223
Variation margin on futures contract
(Note F).............................. 0 0 0
Other assets............................ 1,065 774 8,658
----------- ----------- -----------
Total assets................... 21,875,049 24,375,423 35,846,743
----------- ----------- -----------
LIABILITIES:
Payable for capital stock redeemed...... 20,000 0 63,460
Payable for securities purchased........ 2,337,553 1,371,298 3,425,800
Accrued expenses........................ 5,024 4,081 25,406
Payable to advisor...................... 2,756 15,150 9,655
Distributions payable................... 0 0 0
----------- ----------- -----------
Total liabilities.............. 2,365,333 1,390,529 3,524,321
----------- ----------- -----------
NET ASSETS:
Applicable to 620,844, 1,869,254,
2,176,532, 1,499,291, and 5,037,200
shares outstanding, respectively...... $19,509,716 $22,984,894 $32,322,422
=========== =========== ===========
NET ASSETS CONSIST OF:
Capital paid-in......................... $18,176,873 $22,374,941 $23,992,409
Undistributed net investment income
(loss)................................ (68,182) (12,110) (451,316)
Accumulated net realized gain (loss) on
investments........................... 2,499,223 948,051 2,428,599
Net unrealized appreciation
(depreciation) on investments......... (1,098,198) (325,988) 6,352,730
----------- ----------- -----------
$19,509,716 $22,984,894 $32,322,422
=========== =========== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE....................... $ 31.42 $ 12.30 $ 14.85
=========== =========== ===========
------------------------------------------------------------------------------------
<CAPTION>
ROULSTON ROULSTON
GROWTH AND GOVERNMENT
INCOME FUND SECURITIES FUND
---------------------------------------- ------------------------------
<S> <C> <C>
ASSETS:
Investments in securities at value (cost
$21,910,402, $23,298,844, $26,572,506,
$15,786,672 and $47,425,039,
respectively)......................... $16,743,084 $47,320,330
Cash.................................... 0 587,984
Receivable for capital stock sold....... 0 1,206
Receivable for securities sold.......... 468,915 1,004,951
Dividends and interest receivable....... 28,184 748,594
Variation margin on futures contract
(Note F).............................. 0 125
Other assets............................ 6,708 3,008
----------- -----------
Total assets................... 17,246,891 49,666,198
----------- -----------
LIABILITIES:
Payable for capital stock redeemed...... 98,463 0
Payable for securities purchased........ 0 1,497,000
Accrued expenses........................ 20,466 3,786
Payable to advisor...................... 6,162 8,356
Distributions payable................... 0 215,333
----------- -----------
Total liabilities.............. 125,091 1,724,475
----------- -----------
NET ASSETS:
Applicable to 620,844, 1,869,254,
2,176,532, 1,499,291, and 5,037,200
shares outstanding, respectively...... $17,121,800 $47,941,723
=========== ===========
NET ASSETS CONSIST OF:
Capital paid-in......................... $17,363,186 $48,474,533
Undistributed net investment income
(loss)................................ 16,388 0
Accumulated net realized gain (loss) on
investments........................... (1,214,186) (428,226)
Net unrealized appreciation
(depreciation) on investments......... 956,412 (104,584)
----------- -----------
$17,121,800 $47,941,723
=========== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE....................... $ 11.42 $ 9.52
=========== ===========
------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
24
<PAGE> 27
ROULSTON FUNDS STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ROULSTON ROULSTON ROULSTON
EMERGING INTERNATIONAL GROWTH
GROWTH FUND EQUITY FUND FUND
------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 2,875 $ 66,082 $ 78,205
Interest................................ 54,888 41,067 24,630
Foreign taxes withheld on dividends..... 0 (2,083) 0
----------- ----------- -----------
Total investment income........ 57,763 105,066 102,835
----------- ----------- -----------
EXPENSES:
Investment advisory fees (Note B)....... 54,528 51,481 124,256
Distribution expenses (Note B).......... 18,176 17,160 41,418
Administration fees..................... 10,518 10,496 37,362
Transfer agent fees..................... 13,754 13,380 33,703
Legal fees.............................. 1,240 1,301 7,529
Pricing fees............................ 3,069 2,958 13,139
Registration expenses................... 7,918 7,937 8,272
Custodian fees.......................... 8,696 6,537 13,205
Printing fees........................... 1,586 1,345 5,283
Auditing fees........................... 1,140 1,192 3,521
Insurance fees.......................... 626 454 7,232
Trustees fees........................... 677 678 4,081
Amortization of organizational costs
(Note A).............................. 0 0 1,532
Miscellaneous expenses.................. 2,355 524 4,116
----------- ----------- -----------
Total expenses................. 124,283 115,443 304,649
Expenses reimbursed (Note B)............ (2,026) 0 (73,960)
----------- ----------- -----------
Net expenses................... 122,257 115,443 230,689
----------- ----------- -----------
NET INVESTMENT INCOME................... (64,494) (10,377) (127,854)
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS:
Net realized gain/(loss) on
investments........................... 2,496,159 950,592 3,148,769
Net change in unrealized appreciation
(depreciation) on investments......... (1,613,547) (425,314) 3,315,974
----------- ----------- -----------
Net realized and unrealized gain/(loss)
on investments........................ 882,612 525,278 6,464,743
----------- ----------- -----------
INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS............................ $ 818,118 $ 514,901 $ 6,336,889
=========== =========== ===========
------------------------------------------------------------------------------------
<CAPTION>
ROULSTON ROULSTON
GROWTH AND GOVERNMENT
INCOME FUND SECURITIES FUND
---------------------------------------- ------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 200,688 $ 0
Interest................................ 12,836 890,414
Foreign taxes withheld on dividends..... (914) 0
----------- -----------
Total investment income........ 212,610 890,414
----------- -----------
EXPENSES:
Investment advisory fees (Note B)....... 83,220 33,748
Distribution expenses (Note B).......... 27,740 33,748
Administration fees..................... 27,075 24,540
Transfer agent fees..................... 24,884 15,517
Legal fees.............................. 5,685 2,722
Pricing fees............................ 9,156 6,238
Registration expenses................... 7,505 4,643
Custodian fees.......................... 10,452 8,032
Printing fees........................... 4,912 4,300
Auditing fees........................... 2,656 3,057
Insurance fees.......................... 5,374 1,961
Trustees fees........................... 3,210 2,074
Amortization of organizational costs
(Note A).............................. 1,532 1,532
Miscellaneous expenses.................. 2,451 1,027
----------- -----------
Total expenses................. 215,852 143,139
Expenses reimbursed (Note B)............ (48,213) (21,295)
----------- -----------
Net expenses................... 167,639 121,844
----------- -----------
NET INVESTMENT INCOME................... 44,971 768,570
----------- -----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS:
Net realized gain/(loss) on
investments........................... (501,671) (290,802)
Net change in unrealized appreciation
(depreciation) on investments......... (905,245) (100,665)
----------- -----------
Net realized and unrealized gain/(loss)
on investments........................ (1,406,916) (391,467)
----------- -----------
INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS............................ $(1,361,945) $ 377,103
=========== ===========
------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
25
<PAGE> 28
ROULSTON FUNDS
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
ROULSTON EMERGING ROULSTON INTERNATIONAL
GROWTH FUND EQUITY FUND ROULSTON GROWTH FUND
---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Period Six Months Ended Period Six Months Ended Year
4/30/00 Ended 4/30/00 Ended 4/30/00 Ended
(Unaudited) 10/31/99* (Unaudited) 10/31/99* (Unaudited) 10/31/99
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ (64,494) $ (3,688) $ (10,377) $ (1,733) $ (127,854) $ (129,539)
Net realized gain/(loss) on
investments..................... 2,496,159 200,921 950,592 19,450 3,148,769 1,202,908
Net change in unrealized
appreciation (depreciation) on
investments..................... (1,613,547) 515,349 (425,314) 99,326 3,315,974 (5,781,566)
----------- ---------- ----------- ---------- ----------- -----------
Increase/Decrease in net
assets.......................... 818,118 712,582 514,901 117,043 6,336,889 (4,708,197)
----------- ---------- ----------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income....... 0 0 0 0 0 0
From net realized gains.......... (197,857) 0 (21,991) 0 (1,292,476) (10,062,251)
----------- ---------- ----------- ---------- ----------- -----------
Total distributions.............. (197,857) 0 (21,991) 0 (1,292,476) (10,062,251)
----------- ---------- ----------- ---------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........ 19,483,287 2,627,024 21,294,097 2,575,025 16,962,430 16,187,480
Reinvestment of dividends........ 197,569 0 21,991 0 1,281,949 9,955,688
Amount paid for repurchase of
shares.......................... (4,074,905) (56,102) (1,496,788) (19,384) (27,377,917) (40,348,304)
----------- ---------- ----------- ---------- ----------- -----------
Net increase (decrease) from
capital transactions............ 15,605,951 2,570,922 19,819,300 2,555,641 (9,133,538) (14,205,136)
----------- ---------- ----------- ---------- ----------- -----------
Total increase (decrease) in net
assets.......................... 16,226,212 3,283,504 20,312,210 2,672,684 (4,089,125) (28,975,584)
NET ASSETS:
Beginning of period.............. 3,283,504 0 2,672,684 0 36,411,547 65,387,131
----------- ---------- ----------- ---------- ----------- -----------
End of period.................... $19,509,716 $3,283,504 $22,984,894 $2,672,684 $32,322,422 $36,411,547
=========== ========== =========== ========== =========== ===========
Accumulated undistributed net
investment income (loss)
included in net assets at end of
period.......................... $ (68,182) $ 0 $ (12,110) $ 0 $ (451,316) $ (323,462)
----------- ---------- ----------- ---------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold...................... 569,387 174,830 1,723,338 263,309 1,232,308 1,222,425
Shares issued on reinvestment of
dividends....................... 7,288 0 1,865 0 132,058 614,567
Shares repurchased............... (125,479) (5,182) (117,249) (2,009) (2,043,320) (2,956,848)
----------- ---------- ----------- ---------- ----------- -----------
Net increase (decrease) from
capital transactions............ 451,196 169,648 1,607,954 261,300 (678,954) (1,119,856)
=========== ========== =========== ========== =========== ===========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* For the period 7/1/99 (inception) to 10/31/99.
See accompanying notes to financial statements.
26
<PAGE> 29
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ROULSTON GROWTH AND INCOME ROULSTON GOVERNMENT SECURITIES
FUND FUND
-------------------------------------------------------------------------------------------------------
Six Months Ended Year Six Months Ended Year
4/30/00 Ended 4/30/00 Ended
(Unaudited) 10/31/99 (Unaudited) 10/31/99
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)......... $ 44,971 $ 15,301 $ 768,570 $ 253,985
Net realized gain/(loss) on
investments......................... (501,671) 5,434,280 (290,802) (118,323)
Net change in unrealized appreciation
(depreciation) on investments....... (905,245) (5,371,568) (100,665) (226,890)
------------ ------------ ----------- -----------
Increase/Decrease in net assets...... (1,361,945) 78,013 377,103 (91,228)
------------ ------------ ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income........... 0 (22,171) (768,570) (253,966)
From net realized gains.............. (5,422,162) (2,716,374) 0 0
------------ ------------ ----------- -----------
Total distributions.................. (5,422,162) (2,738,545) (768,570) (253,966)
------------ ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............ 4,034,688 23,543,757 44,484,845 12,015,925
Reinvestment of dividends............ 5,278,830 1,813,267 461,814 234,777
Amount paid for repurchase of
shares.............................. (15,277,785) (25,873,256) (9,351,716) (4,224,017)
------------ ------------ ----------- -----------
Net increase (decrease) from capital
transactions........................ (5,964,267) (516,232) 35,594,943 8,026,685
------------ ------------ ----------- -----------
Total increase (decrease) in net
assets.............................. (12,748,374) (3,176,764) 35,203,476 7,681,491
NET ASSETS:
Beginning of period.................. 29,870,174 33,046,938 12,738,247 5,056,756
------------ ------------ ----------- -----------
End of period........................ $ 17,121,800 $ 29,870,174 $47,941,723 $12,738,247
============ ============ =========== ===========
Accumulated undistributed
(distributions in excess of) net
investment income included in net
assets at end of period............. $ 16,388 $ (28,583) $ 0 $ (15)
------------ ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................... 354,358 1,445,258 4,659,771 1,224,142
Shares issued on reinvestment of
dividends........................... 463,934 108,971 48,257 22,213
Shares repurchased................... (1,326,933) (1,626,151) (978,893) (423,245)
------------ ------------ ----------- -----------
Net increase (decrease) from capital
transactions........................ (508,641) (71,922) 3,729,135 823,110
============ ============ =========== ===========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE> 30
ROULSTON FUNDS
--------------------------------------------------------------------------------
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
ROULSTON EMERGING ROULSTON INTERNATIONAL
GROWTH FUND EQUITY FUND ROULSTON GROWTH FUND
---------------------------------------------------------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Period Ended Period Ended Year Year
4/30/00 Ended 4/30/00 Ended 4/30/00 Ended Ended
(Unaudited) 10/31/1999*** (Unaudited) 10/31/1999*** (Unaudited) 10/31/99 10/31/98
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD.................. $ 19.35 $10.00 $ 10.23 $10.00 $ 12.75 $ 16.45 $ 18.88
------- ------ ------- ------ ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)..................... (0.09) (0.02) 0.00 (0.01) (0.09) (0.06) (0.03)
Net realized and unrealized
gain (loss) on
investments................ 12.97 9.37 2.11 0.24 2.67 (1.03) (1.30)
------- ------ ------- ------ ------- ------- -------
Total from investment
operations................. 12.88 9.35 2.11 0.23 2.58 (1.09) (1.33)
------- ------ ------- ------ ------- ------- -------
LESS DISTRIBUTIONS:
From net investment
income..................... 0.00 0.00 0.00 0.00 0.00 0.00 0.00
From realized capital
gains...................... (0.81) 0.00 (0.04) 0.00 (0.48) (2.61) (1.10)
------- ------ ------- ------ ------- ------- -------
Total distributions...... (0.81) 0.00 (0.04) 0.00 (0.48) (2.61) (1.10)
------- ------ ------- ------ ------- ------- -------
NET ASSET VALUE, END OF
PERIOD..................... $ 31.42 $19.35 $ 12.30 $10.23 $ 14.85 $ 12.75 $ 16.45
======= ====== ======= ====== ======= ======= =======
TOTAL RETURN................ 67.43%** 93.30%** 20.62%** 2.30%** 20.83%** (9.18)% (7.73)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)...................... $19,510 $3,284 $22,985 $2,673 $32,322 $36,412 $65,387
Ratio of expenses to average
net assets
before reimbursement of
expenses by Adviser.... 1.68%* 11.54%* 1.65%* 15.24%* 1.81%* 1.57% 1.43%
after reimbursement of
expenses by Adviser.... 1.65%* 1.95%* N/A%* 1.95%* 1.37%* 1.38% 1.38%
Ratio of net investment
income to average net
assets
before reimbursement of
expenses by Adviser.... (0.90)%* (10.46)%* (0.15)%* (13.86)%* (1.20)%* (0.44)% (0.18)%
after reimbursement of
expenses by Adviser.... (0.87)%* (0.87)%* N/A%* (0.57)%* (0.76)%* (0.26)% (0.13)%
Portfolio turnover.......... 146.21% 79.91%** 33.70% 51.26%** 44.24% 121.21% 52.23%
<CAPTION>
ROULSTON GROWTH FUND
---------------------------- ------------------------------
Year Year Year
Ended Ended Ended
10/31/97 10/31/96 10/31/95
---------------------------- ------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD.................. $ 15.50 $ 13.55 $ 12.27
------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)..................... (0.01) 0.02 0.04
Net realized and unrealized
gain (loss) on
investments................ 4.55 2.16 2.04
------- ------- -------
Total from investment
operations................. 4.54 2.18 2.08
------- ------- -------
LESS DISTRIBUTIONS:
From net investment
income..................... (0.01) (0.03) (0.04)
From realized capital
gains...................... (1.15) (0.20) (0.76)
------- ------- -------
Total distributions...... (1.16) (0.23) (0.80)
------- ------- -------
NET ASSET VALUE, END OF
PERIOD..................... $ 18.88 $ 15.50 $ 13.55
======= ======= =======
TOTAL RETURN................ 31.00% 16.28% 18.17%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)...................... $77,017 $57,198 $49,408
Ratio of expenses to average
net assets
before reimbursement of
expenses by Adviser.... 1.58% 1.69% 1.57%
after reimbursement of
expenses by Adviser.... 1.38% 1.38% 1.41%
Ratio of net investment
income to average net
assets
before reimbursement of
expenses by Adviser.... (0.25)% (0.16)% 0.14%
after reimbursement of
expenses by Adviser.... (0.05)% 0.15% 0.29%
Portfolio turnover.......... 41.16% 58.01% 46.51%
</TABLE>
* Annualized
** Not annualized
*** For the period 7/1/99 (inception) to 10/31/99.
N/A - not applicable
See accompanying notes to financial statements.
28
<PAGE> 31
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ROULSTON GROWTH AND INCOME FUND
-------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(Unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD.................. $ 14.88 $ 15.89 $ 17.87 $ 14.22 $ 12.29 $ 10.68
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)..................... 0.02 0.01 0.01 0.05 0.13 0.15
Net realized and unrealized
gain (loss) on
investments................ (0.63) (0.08) (0.15) 4.83 2.04 1.68
------- ------- ------- ------- ------- -------
Total from investment
operations................. (0.61) (0.07) (0.14) 4.88 2.17 1.83
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment
income..................... 0.00 (0.01) 0.00 (0.09) (0.14) (0.12)
From realized capital
gains...................... (2.85) (0.93) (1.84) (1.14) (0.10) (0.10)
------- ------- ------- ------- ------- -------
Total distributions...... (2.85) (0.94) (1.84) (1.23) (0.24) (0.22)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD..................... $ 11.42 $ 14.88 $ 15.89 $ 17.87 $ 14.22 $ 12.29
======= ======= ======= ======= ======= =======
TOTAL RETURN................ (4.14)%** (1.07)% (1.20)% 36.61% 17.77% 17.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)...................... $17,122 $29,870 $33,047 $30,841 $23,071 $23,082
Ratio of expenses to average
net assets
before reimbursement of
expenses by Adviser.... 1.92%* 1.61% 1.53% 1.76% 1.83% 1.79%
after reimbursement of
expenses by Adviser.... 1.49%* 1.48% 1.49% 1.50% 1.50% 1.50%
Ratio of net investment
income to average net
assets
before reimbursement of
expenses by Adviser.... (0.03)%* (0.29)% (0.02)% 0.03% 0.58% 0.98%
after reimbursement of
expenses by Adviser.... 0.40% 0.04% 0.02% 0.29% 0.91% 1.26%
Portfolio turnover.......... 65.73% 126.99% 40.43% 42.45% 34.02% 13.36%
<CAPTION>
ROULSTON GOVERNMENT SECURITIES FUND
---------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(Unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD.................. $ 9.74 $ 10.43 $ 9.90 $ 9.75 $ 9.84 $ 9.03
------- ------- ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)..................... 0.26 0.47 0.49 0.49 0.49 0.49
Net realized and unrealized
gain (loss) on
investments................ (0.22) (0.69) 0.53 0.15 (0.05) 0.81
------- ------- ------ ------ ------ ------
Total from investment
operations................. 0.04 (0.22) 1.02 0.64 0.44 1.30
------- ------- ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment
income..................... (0.26) (0.47) (0.49) (0.49) (0.53) (0.49)
From realized capital gains 0.00 0.00 0.00 0.00 0.00 0.00
------- ------- ------ ------ ------ ------
Total distributions.... (0.26) (0.47) (0.49) (0.49) (0.53) (0.49)
------- ------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.52 $ 9.74 $10.43 $ 9.90 $ 9.75 $ 9.84
======= ======= ====== ====== ====== ======
TOTAL RETURNS 0.42%** (2.09)% 10.61% 6.76% 4.58% 14.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)...................... $47,942 $12,738 $5,057 $4,411 $5,752 $8,647
Ratio of expenses to average
net assets
before reimbursement of
expenses by Adviser.... 1.04%* 2.34% 2.19% 2.70% 2.05% 2.16%
after reimbursement of
expenses by Adviser.... 0.88%* 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.... 5.42%* 3.38% 3.60% 3.23% 3.78% 3.89%
after reimbursement of
expenses by Adviser.... 5.58%* 4.81% 4.89% 5.03% 4.93% 5.16%
Portfolio turnover.......... 228.43% 837.17% 89.89% 21.01% 21.23% 1.28%
</TABLE>
29
<PAGE> 32
ROULSTON FUNDS
April 30, 2000 (Unaudited)
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES:
Roulston Funds (the "Trust") 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, as amended to date. The Trust currently consists of five
Funds (the "Funds"): Roulston Growth Fund (the "Growth Fund"), Roulston Growth
and Income Fund (the "Growth and Income Fund"), Roulston Government Securities
Fund (the "Government Fund"), Roulston International Equity Fund (the
"International Equity Fund") and Roulston Emerging Growth Fund (the "Emerging
Growth 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 Growth Fund, the Growth and Income Fund and
the Government Fund of the Trust (collectively, the "Acquiring Funds") 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.
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 or
other market system 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
Advisor 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
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, subject to the seller's agreement
to repurchase and the Fund's agreement to resell such securities at a mutually
agreed-upon date and price. Securities purchased subject to repurchase
agreements are deposited with the applicable Fund's custodian and, pursuant to
the terms of the repurchase agreement, must have an aggregate market value
greater than 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 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.
30
<PAGE> 33
NOTES TO FINANCIAL STATEMENTS
(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 trade date. Security gains and losses are determined on
the identified cost basis. Discounts and premiums on securities purchased are
amortized over the life of the respective securities.
(5) DIVIDENDS AND DISTRIBUTIONS: Substantially all of the net investment income
(exclusive of capital gains) of the Growth Fund, Growth and Income Fund,
International Equity Fund and the Emerging Growth 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 a Fund, if
any, will be distributed annually.
(6) DEFERRED ORGANIZATIONAL COSTS: Organizational costs of the Acquiring Funds
are being amortized on a straight-line basis over five years commencing April
29, 1995. The Roulston International Equity Fund and the Roulston Emerging
Growth Fund did not incur any organizational costs.
(7) FOREIGN CURRENCY TRANSLATION: The books and records of each Fund are
maintained in United States (U.S.) dollars. Foreign currencies, investments and
other assets and liabilities for the International Equity Fund are translated,
as applicable, into U.S. dollars at the exchange rates prevailing at the end of
each business day. Purchases and sales of investment securities, income and
expenses are translated at the exchange rate prevailing on the respective dates
of such transactions. Unrealized gains and losses, which result from changes in
foreign exchange rates and/or changes in market prices of securities, have been
included in net unrealized appreciation / (depreciation) on investments.
NOTE (B) RELATED PARTY TRANSACTIONS:
The Trust and Roulston have entered into an Investment Advisory Agreement (the
"Agreement") dated as of January 20, 1995, as amended as of July 1, 1999. Under
the 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 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 each of the International Equity Fund and the Emerging
Growth Fund, Roulston receives a fee at an annual rate of 0.75% of such Fund's
average daily net assets. With respect to the Government Fund, Roulston receives
a fee at an annual rate of 0.25% of the average daily net assets up to $100
million of such assets, and 0.125% of such assets of $100 million or more. Such
fees are calculated daily and paid monthly.
Pursuant to Rule 12b-1 under the Act, the Trust has adopted a Distribution and
Shareholder Service Plan dated January 20, 1995, as amended as of March 1, 1996
(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 until further written notice to
shareholders to the extent necessary to cause total operating expenses as a
percentage of net assets of the Growth Fund, the Growth and Income Fund, the
Government Fund, the International Equity Fund and
31
<PAGE> 34
ROULSTON FUNDS
the Emerging Growth Fund not to exceed 1.38%, 1.50%, 0.90%, 1.95% and 1.95%,
respectively.
Information regarding these transactions is as follows for the six months ended
April 30, 2000:
<TABLE>
<CAPTION>
Emerging International
Growth Equity Growth
Fund Fund Fund
-------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Fees before fee
waiver................ $54,528 $ 51,481 $124,256
Fees waived............. (2,026) -- (73,960)
Rule 12b-1 Fees......... 18,176 17,160 41,418
Other expenses
reimbursed............ -- -- --
-------- -------- --------
Net fees and expenses to
related parties....... $70,678 $ 68,641 $ 91,714
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Growth and Government
Income Fund Fund
---------------------------------------------------------
<S> <C> <C>
INVESTMENT ADVISORY FEES:
Fees before fee waiver........ $ 83,220 $ 33,748
Fees waived................... (48,213) (21,295)
Rule 12b-1 Fees............... 27,740 33,748
Other expenses reimbursed..... -- --
-------- --------
Net fees and expenses to
related parties............. $ 62,747 $ 46,201
======== ========
---------------------------------------------------------
</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 months ended April 30, 2000 were:
<TABLE>
<CAPTION>
Proceeds
Purchases from Sales
(000) (000)
---------------------------------------------------------
<S> <C> <C>
Emerging Growth Fund.......... $ 34,860 $ 18,891
International Equity Fund..... 23,168 4,314
Growth Fund................... 14,599 27,636
Growth and Income Fund........ 14,850 26,162
Government Fund............... 93,537 60,161
---------------------------------------------------------
</TABLE>
NOTE (D) UNREALIZED APPRECIATION AND DEPRECIATION:
At April 30, 2000, the gross unrealized appreciation and depreciation of
securities for book and Federal income tax purposes consisted of the following:
<TABLE>
<CAPTION>
Gross Gross NET
Unrealized Unrealized Unrealized
Appreciation (Depreciation) App/(Dep)
(000) (000) (000)
--------------------------------------------------------------------
<S> <C> <C> <C>
Emerging Growth.......... $2,669 $(3,767) $(1,098)
International Equity
Fund................... 941 (1,267) (326)
Growth Fund.............. 7,605 (1,252) 6,353
Growth and Income Fund... 1,666 (710) 956
Government Fund.......... 76 (181) (105)
--------------------------------------------------------------------..
</TABLE>
NOTE (E) RISKS RELATING TO FOREIGN SECURITY INVESTMENTS:
Securities in which the International Equity Fund invests may be denominated or
quoted in currencies other than the U.S. Dollar. Changes in foreign currency
exchange rates affect the value of the Fund's portfolio. Foreign investments
involve special risks not applicable to investments in securities of U.S.
issuers. Such risks include: imposition of exchange controls or currency
devaluations, less extensive regulation of foreign brokers, securities markets
and issuers, political, economic or social instability, less publicly available
information and less liquidity in the market for such securities, different
accounting standards and reporting obligations, foreign economies differ from
the U.S. economy (favorably or unfavorably) in areas such as growth of gross
domestic product, rates of inflation, unemployment, currency depreciation and
balance of payments positions, possibility of expropriation (the taking of
property or amending of property rights by a foreign government) or foreign
ownership limitations, excessive or confiscatory taxation.
NOTE (F) VARIATION MARGIN ON FUTURES CONTRACT:
The Funds may purchase or sell exchange-traded futures contracts, which are
contracts that obligate the Fund to make or take delivery of a financial
instrument or the cash value of a security index at a specified future date at a
specified price. The Funds may use futures contracts to manage exposure to the
stock and bond markets or changes in interest rates and currency values, or for
gaining exposure to markets.
32
<PAGE> 35
NOTES TO FINANCIAL STATEMENTS
Risks of entering into futures contracts include the possibility that there may
be an illiquid market at the time the advisor to the Fund may be attempting to
sell some or all the Fund holdings or that a change in the value of the contract
may not correlate with changes in the value of the underlying securities. Upon
entering into a futures contract, the Fund is required to deposit either cash or
securities (initial margin). Subsequent payments (variation margin) are made or
received by the Fund, generally on a daily basis. The variation margin payments
are equal to the daily changes in the contract value and are recorded as
unrealized gains or losses. The Funds recognize a realized gain or loss when the
contract is closed or expires. The statement of operations reflects net realized
and net unrealized gains and losses on these contracts.
33
<PAGE> 36
[ROULSTON FUNDS LOGO]
3636 Euclid Ave., Suite 3000
Cleveland, Ohio 44115
1-800-332-6459
Trustees:
Thomas V. Chema
David B. Gale
Scott D. Roulston
Officers:
Scott D. Roulston, President
Kevin M. Crotty, Treasurer
Charles A. Kiraly, Secretary
Adviser:
Roulston & Company, Inc.
3636 Euclid Ave., Suite 3000
Cleveland, Ohio 44115
Distributor:
Roulston Research Corp.
3636 Euclid Ave., Suite 3000
Cleveland, Ohio 44115
Administrator & Transfer Agent:
PFPC Inc.
3200 Horizon Drive
King of Prussia, Pennsylvania 19406
Legal Counsel:
Baker & Hostetler LLP
65 E. State Street
Columbus, Ohio 43215
Independent Public Accountants:
McCurdy & Associates CPA's, Inc.
27955 Clemens Road
Westlake, Ohio 44145
For information, call 1-800-332-6459
or visit us online at www.roulstonfunds.com
Roulston Funds take their logo 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.
