<PAGE>
December 18, 2000
Dear Shareholder:
During the year, the Roulston Funds were well positioned to provide the
diversification and balance crucial to maneuvering in the volatility that
characterized the behavior of the financial markets. We are pleased to present
you with the one year performance of the Roulston Funds during the fiscal year
ended October 31, 2000:
Roulston Government Securities Fund 5.92%
Roulston Growth and Income Fund 2.28%
Roulston Growth Fund 21.56%
Roulston International Equity Fund 12.74%
Roulston Emerging Growth Fund 67.22%
From an economic standpoint, much was in a state of flux during the year,
primarily due to some early signs of economic weakness. Though the year began
with the markets still raging from the full fury of the longest economic
expansion in U.S. history, there were developments that carried over from last
year, primarily in rising prices of oil and other commodities. This, along with
a weaker dollar, suggested inflationary pressures were on the horizon. In the
midst of this, the Federal Reserve Bank continued to raise rates, and though
they have not moved again since early summer, the damage had already seeped into
the financial markets. After many of the technology stocks failed to recover
from what seems to have become their customary spring decline, psychology
shifted to the economy where signs of weakness in housing and consumer activity
had emerged.
In Europe, the newly empowered European Central Bank had embarked on its own
series of interest rate increases. Even so, none of these increases could
successfully stem the decline experienced in the Euro since its introduction a
year earlier. The Euro's weakness further strained international trade already
undermined by stubborn economic weakness in Japan, a strategically important
trading partner.
Each year presents a unique set of challenges and this year was no different.
The transition from the Industrial Age to the Information Age will not always be
a smooth one. Overall, the financial markets tested the experience of our
investment team and it was their discipline that guided the Funds. With this in
mind, our goal remains simple: long term performance for our shareholders.
Scott D. Roulston Howard W. Harpster
President Chief Investment Officer
<PAGE>
ROULSTON EMERGING GROWTH FUND
The graph below compares the increase in value of a hypothetical $10,000
investment in Roulston Emerging Growth Fund with the performance of a similar
investment in the Russell 2000 Growth Index.
Average Annual Total Return*
1 Year............... 67.22%
Since Inception..... 140.63%
The period ended: 10/31/00
Fund inception: 7/1/99
<TABLE>
<S> <C> <C>
Roulston Emerging Russell 2000
Growth Fund Growth Index
7/01/99 $10,000 $10,000
7/31/99 12,850 9,691
8/31/99 15,400 9,329
9/30/99 16,320 9,509
10/31/99 19,330 9,752
11/30/99 23,770 10,783
12/31/99 31,581 12,684
1/31/00 32,127 12,566
2/29/00 43,540 15,490
3/31/00 38,236 13,862
4/28/00 32,364 12,462
5/31/00 28,182 11,370
6/30/00 35,733 12,839
7/31/00 33,260 11,739
8/31/00 40,152 12,974
9/29/00 36,608 12,329
10/31/00 32,323 11,328
</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. The Russell 2000 Growth Index is comprised of
approximately 2000 growth companies with smaller market capitalizations related
to the market capitalizations of other U.S. companies. 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 emerging growth stocks. In most
cases, these emerging companies will have received venture capital financing
during their development stage.
The Fund's primary investment objective is capital appreciation, and returns
have been, and will continue to be, quite volatile because the companies and the
markets in which they operate tend to be fast growing and subject to rapid
technological changes. In addition, they may be competing for these new markets
against bigger and more established companies that have far larger financial
resources.
During the fiscal year, the Roulston Emerging Growth Fund's performance
benefited by its holdings in technology related industries and the strength of
the NASDAQ over much of the period. Also, the performance of the Fund did
benefit, in part, from the strong demand for initial public offerings (IPOs) in
telecommunications and Internet related technology companies. We do not expect
the outsized gains generated from our participation in these IPOs to be repeated
in the future. The decline of the dot com sector has reduced the demand for new
offerings from technology companies and only the very best deals seem likely to
go public at this point.
In addition, the slowdown in the economy is having an impact on the technology
sector. PC sales are falling off and business in Europe is lackluster at best.
The large telecom companies have profitability issues and their equipment
spending may drop as a result. After six interest increases and a spike in oil
prices, the Federal Reserve may have engineered somewhat of a bear market in the
NASDAQ.
However, our response to the changing situation in technology has been to reduce
our exposure to semiconductor stocks and to increase our allocation towards
biotech. The biotech sector has done well this year and we expect this trend to
continue because of the rich new product pipelines that many of these companies
have developed. Several late development stage biotech companies have the
potential to become major drug companies over the next several years.
ROULSTON INTERNATIONAL EQUITY FUND
The graph below compares the increase in value of a hypothetical $10,000
investment in Roulston International Equity Fund with the performance of a
similar investment in the MSCI EAFE + Canada IX Index.
Average Annual Total Return*
1 Year............... 12.74%
Since Inception...... 11.27%
The period ended: 10/31/00
Fund inception: 7/1/99
<TABLE>
<S> <C> <C>
Roulston International MSCI EAFE + Canada IX
Equity Fund Index
7/01/99 $10,000 $10,000
7/31/99 9,760 10,276
8/31/99 9,620 10,293
9/30/99 9,730 10,393
10/31/99 10,230 10,786
11/30/99 11,370 11,152
12/31/99 12,701 12,167
1/31/00 12,169 11,416
2/29/00 13,172 11,729
3/31/00 12,951 12,199
4/28/00 12,339 11,555
5/31/00 11,928 11,264
6/30/00 12,619 11,739
7/31/00 12,277 11,279
8/31/00 12,458 11,415
9/29/00 11,734 10,813
10/31/00 11,533 10,507
</TABLE>
* Unlike our Fund, the MSCI EAFE + Canada IX does not reflect fees and expenses
and is an unmanaged indicator of financial performance; as such, it is not sold
as an investment. The Morgan Stanley Capital International Europe, Australia and
Far East and Canada Index (The MSCI EAFE + Canada Index) is an index of
developed markets. 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 or "ADRs." ADRs trade in U.S. dollars on U.S. national exchanges (such
as the New York Stock Exchange) and in the over-the-counter markets (such as
NASDAQ).
The Fund is well diversified with investments in 85 companies and 16 different
developed markets. International markets continue to be negatively impacted by
the strength of the U.S. dollar and the huge spike in energy prices. As a
defensive measure, the Fund has held more cash than normal and shifted money out
of technology stocks and into less volatile energy and financial sectors. These
moves, along with our emphasis on large, market dominant companies, have helped
the Fund to outperform the MSCI EAFE Index in a down market.
At the time of this report, we anticipate that overseas currencies will continue
to be weak as long as the markets believe that the Federal Reserve is going to
maintain its current position on interest rates. Barring an unforeseen event, it
is unlikely that the Fed would do anything to lower interest rates until
sometime in 2001.
ROULSTON GROWTH FUND
The graph below compares the increase in value of a hypothetical $10,000
investment in Roulston Growth Fund with the performance of a similar investment
in the Russell 1000 Growth Index.
Average Annual Total Return*
1 Year..................21.56%
5 Year.................. 9.18%
Since Inception.........11.72%
The period ended: 10/31/00
Fund inception: 7/1/93
<TABLE>
<S> <C> <C>
Roulston Growth Russell 1000
Fund Growth Index
7/01/93 $10,000 $10,000
7/31/93 10,200 9,821
10/31/93 11,090 10,430
1/31/94 11,730 10,784
4/30/94 11,847 10,124
7/31/94 11,796 10,314
10/31/94 12,298 10,993
1/31/95 12,222 11,051
4/30/95 13,327 12,110
7/31/95 14,950 13,557
10/31/95 14,532 14,207
1/31/96 14,514 15,340
4/30/96 16,584 16,053
7/31/96 15,785 15,661
10/31/96 16,897 17,339
1/31/97 18,638 19,558
4/30/97 18,404 19,594
7/31/97 22,065 23,782
10/31/97 22,135 22,623
1/31/98 22,374 24,561
4/30/98 24,286 27,842
7/31/98 22,970 28,518
10/31/98 20,425 28,198
1/31/99 20,965 35,021
4/30/99 19,292 35,227
7/31/99 18,652 35,375
10/31/99 18,550 37,855
1/31/00 19,381 41,979
4/30/00 22,414 44,938
7/31/00 22,882 43,993
10/31/00 22,550 41,382
</TABLE>
*Unlike our Fund, the Russell 1000 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. The Russell 1000 Growth Index is comprised of the
1,000 largest U.S. Companies, based upon total market capitalization, whose
stocks have a greater than average growth orientation. 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 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
stocks if we believe this improvement is not yet fully reflected in the stock
price, which generally is determined by examining the price to earnings ratio
compared to the market and the history of that relationship. Many of the
companies owned by the Fund tend to be among the 1000 largest companies as
measured by stock market capitalization and typically have been public for a
number of years.
During the year ended October 31, 2000, healthcare stocks performed particularly
well for the Fund. Cardinal Health and Stryker were notable. Technology stocks
began the year well, but weakened materially in late summer due to concerns over
inventory levels and the economy. Nonetheless, strong performance was recorded
in Analog Devices, Xilinx, ADC Telecom, and Altera. Among financial stocks
Paychex more than doubled.
The greatest investment by the Fund in an economic sector currently is in
technology. As identified in the Russell 1000 Growth Index benchmark, stocks in
this sector approximated 40% of the Fund at the end of October, somewhat less
than the 50% weighting in the Index. Healthcare represented 21% of the Fund,
compared with 17% in the Index. Basically, with short-term interest rates and
energy costs rising worldwide during the past year or so, a moderation of
economic growth appears inevitable. At the margin, companies identified as
experiencing relatively greater growth compared with companies on average will
more likely be beneficiaries of major demographic trends or unique product lines
rather than beneficiaries of robust spending worldwide. The Fund is gradually
reflecting this transition.
The fiscal year 2001 could be more of a challenge for stock selection. Not only
is economic growth more in question as the year begins, but confidence in
forecasts in earnings will be weakened by the introduction of new regulations.
Full Disclosure rules could curtail corporate communications with investors and
FASB 133, which requires all financial derivatives to be marked to fair value
each accounting period, modifies significantly a technique used to smooth
earnings trends. The market's conclusion in regards to these changes may be
gradual and evolving, rather than abrupt. But there will be an impact, which we
hope to properly assess while continuing to position for growth at a reasonable
price.
ROULSTON GROWTH AND INCOME FUND
The graph below compares the increase in value of a hypothetical $10,000
investment in Roulston Growth and Income Fund with the performance of a similar
investment in the Russell 1000 Value Index.
Average Annual Total Return*
1 Year.................2.28%
5 Years................9.96%
Since Inception.......10.31%
The period ended: 10/31/00
Fund inception: 7/1/93
<TABLE>
<S> <C> <C>
Roulston Growth Russell 1000
& Income Fund Value Index
7/01/93 $10,000 $10,000
7/31/93 10,030 10,112
10/31/93 10,398 10,486
1/31/94 10,894 10,861
4/30/94 10,682 10,293
7/31/94 10,900 10,478
10/31/94 10,889 10,567
1/31/95 10,940 10,573
4/30/95 11,746 11,587
7/31/95 12,541 12,664
10/31/95 12,780 13,175
1/31/96 14,075 14,633
4/30/96 14,149 15,051
7/31/96 13,749 14,676
10/31/96 15,051 16,302
1/31/97 16,558 18,098
4/30/97 17,167 18,447
7/31/97 20,353 21,841
10/31/97 20,560 21,712
1/31/98 20,900 23,004
4/30/98 23,227 26,228
7/31/98 21,437 25,709
10/31/98 20,312 24,931
1/31/99 21,525 27,196
4/30/99 22,471 29,924
7/31/99 22,822 29,562
10/31/99 20,094 29,053
1/31/00 18,773 28,019
4/30/00 19,262 28,764
7/31/00 18,978 28,085
10/31/00 20,551 30,655
</TABLE>
*Unlike our Fund, the Russell 1000 Value Index does not reflect fees and
expenses and is an unmanaged indicator of financial performance; as such, it is
not sold as an investment. The Russell 1000 Value Index is comprised of the
1,000 largest U.S. companies, based upon total market capitalization, whose
stocks have a greater than average value orientation. 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 Growth and Income Fund's investment 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 that 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 46
stocks. We expect that the portfolio will have investments in between 45 and 55
companies.
This year we have increased our exposure to the energy and utility sectors
through additions of Apache Corporation and Dominion Resources. Apache is a
leading independent oil and gas exploration and development company. Dominion
Resources, a diversified utility holding company, is a provider of both electric
energy and natural gas. These additions along with other related holdings should
benefit from rising energy prices as we enter the winter season. Additionally,
these sectors, coupled with food industry related stocks and a designed
defensive posture during the fiscal year, were driving forces in performance
over the period, although not enough to outpace the Index.
Other additions to the portfolio include Pharmacia Corporation and United Parcel
Service. Pharmacia, a worldwide pharmaceutical and agriculture product company
resulting from the merger between drug maker Pharmacia & Upjohn and Monsanto,
provides additional exposure to the Healthcare sector. United Parcel Service is
an express carrier and package delivery company. United Parcel, with its broad
offering of delivery services is positioned to expand both globally and
domestically. UPS also has positioned itself to benefit from the growing
e-commerce retail environment.
The Fund continues to have large sector weightings in financial services, energy
and utilities and a fair amount of exposure to select consumer staples. We
believe that these defensive holdings should do relatively well in a volatile
market environment.
ROULSTON GOVERNMENT SECURITIES FUND
The graph below compares the increase in value of a hypothetical $10,000
investment in Roulston Government Securities Fund with the performance of a
similar investment in the Lehman U.S. Government/Credit Intermediate Bond Index.
Average Annual Total Return*
1 Year.................5.92%
5 Years................5.07%
Since Inception........4.74%
The period ended: 10/31/00
Fund inception: 7/1/93
<TABLE>
<S> <C> <C>
Roulston Governemnt Lehman U.S. Government/Credit
Securities Fund Intermediate Bond Index
7/01/93 $10,000 $10,000
7/31/93 10,000 10,024
10/31/93 10,304 10,253
1/31/94 10,346 10,356
4/30/94 9,649 9,966
7/31/94 9,748 10,118
10/31/94 9,558 10,055
1/31/95 9,733 10,142
4/30/95 10,170 10,540
7/31/95 10,628 10,932
10/31/95 10,968 11,234
1/31/96 11,350 11,600
4/30/96 10,989 11,366
7/31/96 11,093 11,512
10/31/96 11,471 11,888
1/31/97 11,545 12,014
4/30/97 11,569 12,095
7/31/97 12,046 12,556
10/31/97 12,246 12,779
1/31/98 12,575 13,078
4/30/98 12,588 13,175
7/31/98 12,810 13,403
10/31/98 13,545 13,941
1/31/99 13,546 14,073
4/30/99 13,384 14,013
7/31/99 13,193 13,902
10/31/99 13,262 14,079
1/31/00 13,092 13,998
4/30/00 13,318 14,227
7/31/00 13,684 14,610
10/31/00 14,048 14,986
</TABLE>
*Unlike our Fund, the Lehman U.S. Government/Credit Intermediate Bond Index does
not reflect fees and expenses and is an unmanaged indicator of financial
performance; as such, it is not sold as an investment. The U.S.
Government/Credit Intermediate Bond Index consists of U.S. Government and
corporate bonds with maturities of one year or more and outstanding per value of
at least $150 million. 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.
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.
When the economy is strong, it becomes harder to distinguish between the myriad
of events that bring about financial market volatility. Some of those events
possess clear influence, such as the steep rise in oil prices. Other events are
more difficult to spot and caused much of the volatility the markets experienced
in the second and third quarter of this year. One example is the unemployment
rate, which stayed low, confirming the ongoing economic expansion while ignoring
that the demand for workers masked the threat of wage inflation. Businesses
which flourished in the environment of super high productivity growth managed to
hold down margins to such an extent that they overlooked the mild declines in
consumer activity that were already beginning to appear in the first quarter. In
fact, well into the second quarter most industry and market observers were still
inclined to view consumer activity as beholden to the equity markets. As long as
the rosy outlook for the markets continued, which they did, consumers were just
being fickle. To make matters worse, by the time most of the incremental rises
in worker wages were noticed the equity markets had already begun to unwind some
of the excesses of the past years, particularly in technology shares. When the
preliminary Gross Domestic Product figures for the third quarter were released
at the end of October one couldn't help to take notice. Final Domestic Sales,
the real one that does not include inventories and trade, had significantly
decelerated in the third quarter. The index for Leading Indicators showed a
third consecutive monthly decline, which customarily points to weaker growth
ahead. Consumer confidence continued to decline as evidenced by the Conference
Board surveys. In all, much of the slowdown that has occurred may likely have a
self-reinforcing effect. Confidence that was buoyed by the rise in the equity
markets was giving way to a more conservative consumer. And the financial wealth
effect that spurred the most excessive public and private spending spree in the
last one hundred years was beginning to look like it might converge with a lower
rate of income growth.
Considering these events, the Roulston Government Securities Fund entered this
period well positioned for the drop in rates that ensued. Having under weighted
the corporate bond portion of the asset allocation in the second quarter was
particularly helpful, in that, corporate credit spreads widened as the declining
equity markets gained speed and suggested a possible recession. The widening was
a good opportunity for the Fund to increase its corporate investment as well as
investment in other asset classes that widened in sympathy. Overall the
corporate credit spreads that the Fund holds are of the highest quality, almost
entirely made up of single, double and triple `AAA' rated companies. Other
investments were found in the mortgage market where the Fund produced a
weighting in agency mortgages, and Ginnie Mae mortgages. This asset class
provided the protection crucial to the mandate of stable principal within the
Fund. By the time uncertainty regarding the severity of the slowdown emerged,
spreads started to narrow and the portfolio captured some extra yield.
As the financial markets head into the remainder of the year, the Fund will
maintain the bias that the economy will continue to decelerate. Because at the
time of this report there is less of a threat of recession, the Federal Reserve
Board is likely to leave interest rates unchanged for the rest of 2000. However,
with even the slightest evidence of unwinding in the tight employment markets
there will be reasons to anticipate an easing of monetary conditions at some
point in 2001. The Fund has already experienced an increase in cash flows
resulting from these expectations. As the Fund maintains its current blend of
spread product and government securities, it should benefit from an easier
monetary policy.
<PAGE>
<TABLE>
<CAPTION>
ROULSTON EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
<S> <C> <C>
COMMON STOCKS - 94.24% SHARES VALUE
BIOTECHNOLOGY - 17.64%
Affymetrix, Inc. * 5,000 $ 276,875
AtheroGenics, Inc. * 1,000 6,625
Chiron Corp. * 10,000 433,125
COR Therapeutics, Inc. * 10,000 565,000
Curis, Inc. * 5,000 63,125
Genaissance Pharmaceuticals, Inc. * 500 11,937
Gilead Sciences, Inc. * 3,500 301,000
IDEC Pharmaceuticals Corp. * 5,000 980,625
Inspire Pharmaceuticals, Inc. * 500 9,812
Millennium Pharmaceuticals, Inc. * 18,000 1,306,125
Pharsight Corp. * 500 3,875
Versicor, Inc. * 500 6,562
Vertex Pharmaceuticals, Inc. * 3,400 316,572
-----------------
4,281,258
-----------------
BUSINESS SERVICES - 0.20%
Exodus Communications, Inc. * 1,000 33,562
Luminant Worldwide Corp. * 200 388
WebEx Communications, Inc. * 300 13,519
-----------------
47,469
-----------------
COMMUNICATIONS SOFTWARE - 0.48%
Apropos Technology, Inc. * 10,300 78,538
TeleCommunications Systems, Inc. * 1,500 23,625
Ulticom, Inc. * 300 14,325
-----------------
116,488
-----------------
COMPUTER HARDWARE - 7.11%
Extreme Networks, Inc. * 9,400 779,613
Palm, Inc. * 15,000 803,438
VA Linux Systems, Inc. * 4,900 143,325
-----------------
1,726,376
-----------------
CORPORATE, PROFESSIONAL & FINANCIAL SOFTWARE - 16.14%
Agile Software Corp. * 10,000 753,750
Ariba, Inc. * 8,000 1,011,000
Commerce One, Inc. * 15,000 962,813
i2 Technologies, Inc. * 7,000 1,190,000
-----------------
3,917,563
-----------------
CONSUMER DURABLES - 0.01%
Lexar Media, Inc. * 200 1,487
-----------------
DRUGS - 4.20%
Alkermes, Inc. * 12,000 444,750
Coulter Pharmaceutical, Inc. * 15,000 574,688
-----------------
1,019,438
-----------------
ROULSTON EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
EDUCATION AND TRAINING SERVICES - 2.60%
Apollo Group, Inc. - Class A * 10,500 $ 410,813
DigitalThink, Inc. * 300 10,570
Docent, Inc. * 1,000 25,750
Saba Software, Inc. * 7,900 185,156
-----------------
632,289
-----------------
ELECTRONICS - 0.04%
Nova Measuring Instruments Ltd. * 300 2,850
Viasystems Group, Inc. * 400 5,675
-----------------
8,525
-----------------
ENERGY - 0.12%
Universal Compression Holdings, Inc. * 1,000 28,875
-----------------
ENGINEERING & SCIENTIFIC SOFTWARE - 0.03%
Numerical Technologies, Inc. * 400 8,200
-----------------
FINANCIAL SERVICES - 0.00%
CMGI, Inc. * 45 759
-----------------
HEALTH PRODUCTS AND SERVICES - 1.17%
ACLARA BioSciences, Inc. * 15,750 281,531
Aspect Medical Systems, Inc. * 250 2,219
Landacorp, Inc. * 300 600
-----------------
284,350
-----------------
INSURANCE - 0.00%
Quotesmith.com, Inc. * 300 262
-----------------
INTERNET RETAIL - 0.00%
Garden.com, Inc. * 500 94
MotherNature.com, Inc. * 400 200
-----------------
294
-----------------
INTERNET & INTRANET SOFTWARE & SERVICE - 3.10%
Akamai Technologies, Inc. * 3,200 163,200
Art Technology Group, Inc. * 5,000 313,750
iBEAM Broadcasting Corp. * 50 281
Resonate, Inc. * 500 21,188
Support.com, Inc. * 500 7,125
ValiCert, Inc. * 500 8,656
Vignette Corp. * 8,000 238,500
-----------------
752,700
ROULSTON EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
-----------------
MEDIA -0.07%
ARTISTdirect, Inc. * 500 $ 344
Snowball.com, Inc. * 200 294
Vastera, Inc. * 900 15,975
-----------------
16,613
-----------------
NETWORKING AND COMMUNICATION DEVICES - 7.50%
Brocade Communications Systems, Inc. * 4,000 909,500
CacheFlow, Inc. * 8,000 864,000
McDATA Corp. - Class B * 300 25,008
Mobility Electronics, Inc. * 750 5,437
OTG Software, Inc. * 500 15,750
-----------------
1,819,695
-----------------
SECURITY SOFTWARE & SERVICES - 5.77%
RSA Security, Inc. * 10,500 609,000
VeriSign, Inc. * 6,000 792,000
-----------------
1,401,000
-----------------
SEMICONDUCTORS - 17.05%
Applied Micro Circuits Corp. * 10,000 764,375
Broadcom Corp. - Class A * 6,000 1,334,250
C-Cube Microsystems, Inc. * 10,000 195,000
Linear Technology Corp. 11,200 723,100
Microchip Technology, Inc. * 2,100 66,412
OmniVision Technologies, Inc. * 1,000 34,125
Pixelworks, Inc. * 12,500 416,406
Stanford Microdevices, Inc. * 750 18,797
TranSwitch Corp. * 10,000 577,500
WJ Communications, Inc. * 500 7,500
-----------------
4,137,465
-----------------
TELECOMMUNICATIONS - 10.69%
Aether Systems, Inc. * 6,000 483,750
Avanex, Corp. * 9,000 914,063
Endwave Corp. * 500 7,188
Corvis Corp. * 650 42,656
Juniper Networks, Inc. * 5,600 1,092,000
New Focus, Inc. * 200 12,700
Oplink Communication, Inc. * 1,000 24,375
Tricon Network Systems, Inc. * 75 469
Tycom Ltd. * 500 16,750
-----------------
2,593,951
-----------------
ROULSTON EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
VENTURE CAPITAL - 0.32%
Brantley Capital Corp. * 10,000 $ 78,125
-----------------
TOTAL COMMON STOCKS (COST $21,586,150) $ 22,873,182
-----------------
PRINCIPAL
AMOUNT VALUE
MONEY MARKET SECURITIES - 4.47%
Firstar Treasury Fund, 5.50 % (a) (Cost $1,085,754) 1,085,754 1,085,754
-----------------
REPURCHASE AGREEMENT - 5.60%
Firstar Bank, 4.25%, 11/1/00 (collateralized by Federal
Home Loan Mortgage, 6.30%, 9/1/29, Market
Value $1,384,888, Cost $1,358,000) 1,358,000 1,358,000
-----------------
TOTAL INVESTMENTS - 104.31% (COST $24,029,904**) 25,316,936
-----------------
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.31)% (1,045,772)
-----------------
TOTAL NET ASSETS - 100.00% $ 24,271,164
=================
* Non-income producing
** Also represents cost for Federal income tax purposes.
(a) Variable rate security; the coupon rate shown represents the rate at October 31, 2000.
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
ROULSTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
<S> <C> <C>
COMMON STOCKS - 100.07% SHARES VALUE
AUSTRALIA - 2.88%
BANKS - 1.84%
National Australia Bank, Ltd. (b) 5,265 $ 369,866
National Australia Bank, Ltd. 1,000 13,887
-----------------
383,753
-----------------
CONGLOMERATES - 0.52%
Broken Hill Properties, Ltd. (b) 5,500 108,969
-----------------
MULTI MEDIA - 0.52%
The News Corp., Ltd. (b) 2,500 107,500
-----------------
DENMARK - 0.40%
BANKS - 0.05%
Dan Danske Bank (b) 75 10,848
-----------------
TELECOMMUNICATIONS - 0.35%
Tele Danmark A/S - Cl B (b) 3,000 72,750
-----------------
FINILAND - 2.57%
PAPER PRODUCTS - 1.54%
UPM-Kymmene Oyj (b) 11,000 321,750
-----------------
TECHNOLOGY - 1.03%
Nokia Oyj (b) 5,000 213,750
-----------------
FRANCE - 15.55%
COSMETICS - 2.19%
L'Oreal SA (b) 30,000 457,728
-----------------
FOOD & BEVERAGES - 1.93%
Danone (b) 4,920 138,744
LVMH (Louis Vuitton Moet Hennessy) (b) 17,500 264,687
-----------------
403,431
-----------------
HEALTHCARE SERVICES - 2.03%
Aventis SA (b) 5,875 423,367
-----------------
INSURANCE - 3.18%
AXA-UAP SA (b) 10,000 664,375
-----------------
MULTI MEDIA - 2.21%
Thomson Multimedia (b) 6,000 274,125
Vivendi (b) 13,000 186,668
-----------------
460,793
-----------------
OIL / REFINING / MARKETING - 3.26%
Bouygues Offshore SA (b) 11,000 270,875
Total Fina Elf 5,699 408,191
-----------------
679,066
-----------------
SEMICONDUCTORS - 0.75%
STMicroelectronics (b) 3,000 155,813
-----------------
ROULSTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
GERMANY - 10.40%
BANKS - 4.01%
Commerxbank AG (b) 6,000 $ 169,105
Deutsche Bank AG (b) 8,120 667,639
-----------------
836,744
-----------------
CHEMICALS - 1.12%
BASF AG (b) 225 8,831
Bayer AG (b) 5,185 224,586
Celenese AG (b) 27 469
-----------------
233,886
-----------------
CONGLOMERATE - 1.73%
E.ON AG (b) 7,000 355,687
RWE AG (b) 140 5,625
-----------------
361,312
-----------------
MANUFACURING - 3.05%
Seimens AG (b) 5,000 635,733
-----------------
SOFTWARE - 0.49%
SAP AG (b) 2,000 102,000
-----------------
HONG KONG - 2.62%
FINANCIAL SERVICES - 2.62%
Hutchinson Whampoa, Ltd. (b) 8,800 545,851
-----------------
IRELAND - 1.74%
HEALTHCARE SERVICES - 1.74%
Elan Corp., Plc. (b) * 7,000 363,563
-----------------
ITALY - 3.31%
OIL / REFINING / MARKETING - 1.83%
ENI Oil Co. (b) 7,060 382,123
-----------------
RETAILING - 0.28%
Benetton Group SpA (b) 1,624 59,378
-----------------
TELECOMMUNICATIONS - 1.20%
Telecom Italia SpA (b) 2,125 249,687
-----------------
JAPAN - 14.30%
AUTOMOBILES - 2.04%
Honda Motor Ltd. 5,000 345,937
Toyota Motor Corp. (b) 1,000 80,130
-----------------
426,067
-----------------
CHEMICALS - 0.05%
Fuji Photo Film, Ltd (b) 300 11,138
-----------------
COSMETICS - 0.04%
FANCL Corp. 130 8,215
-----------------
ROULSTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
ELECTRONICS - 1.84%
Hitachi, Ltd (b) 2,205 $ 245,858
Kyocera Corp (b) 930 124,387
Nintendo Co, Ltd. (b) 660 13,729
-----------------
383,974
-----------------
FINANCIAL SERVICES - 1.89%
Aiful Corp. 375 29,537
The Bank of Tokyo-Mitsubishi, Ltd. (b) 7,000 84,000
The Tokio Marine & Fire Insurance Co., Ltd. (b) 5,000 280,000
-----------------
393,537
-----------------
FOOD & BEVERAGE - 0.70%
Ito-Yokado Co., Ltd. (b) 3,000 141,750
Kirin Brewery Ltd. (b) 50 5,100
-----------------
146,850
-----------------
OFFICE / BUSINESS EQUIPMENT - 1.51%
Canon, Inc. (b) 7,775 315,373
-----------------
TECHNOLOGY - 4.96%
Matsushita Electric Industrial Co., Ltd. (b) 1,100 321,475
NEC Corp. (b) 2,200 223,025
Pioneer Corp. (b) 10,000 325,000
Sony Corp. (b) 2,000 166,000
-----------------
1,035,500
-----------------
TRADING COMPANY - 1.27%
Mitsui & Co., Ltd. (b) 2,000 264,000
-----------------
NETHERLANDS - 11.74%
BANKS - 3.73%
ING Groep NV (b) 11,250 778,359
-----------------
CHEMICALS - 0.48%
Akzo Nobel NV (b) 2,210 100,279
-----------------
ELECTRONICS - 3.50%
Koninklijke (Royal) Philips Electronics NV (b) 18,296 730,697
-----------------
FOOD & BEVERAGE - 0.03%
Unilever NV (b) 142 7,215
-----------------
INSURANCE - 1.55%
Ageon NV (b) 8,000 323,000
-----------------
OIL / REFINING / MARKETING - 1.14%
Royal Dutch Petroleum Co. (c) 4,000 237,500
-----------------
PUBLISHING - 1.31%
Elsevier NV (b) 8,000 206,500
Wolters Kluwer NV (b) 3,000 67,439
-----------------
273,939
-----------------
NEW ZEALAND - 0.43%
TELECOMMUNICATIONS - 0.43%
Telecom of New Zealand Ltd., (b) 5,000 89,687
-----------------
ROULSTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
NORWAY - 0.44%
MANUFACTURING - 0.44%
Norsk Hydro AS (b) 2,330 $ 91,889
-----------------
SINGAPORE - 0.23%
BANKS - 0.23%
DBS Group Holdings Ltd. (b) 1,000 47,167
-----------------
SPAIN - 4.64%
BANKS - 1.44%
Banco Bilbao Vizcay SA (b) 22,000 299,750
-----------------
OIL / REFINING / MARKETING - 0.18%
Repsol-YPF, SA (b) 2,420 38,569
-----------------
TELECOMMUNICAITONS - 2.51%
Telefonica SA (b) * 9,021 522,654
-----------------
UTILITIES - 0.51%
Endesa SA (b) 6,355 106,049
-----------------
SWEDEN - 0.34%
AUTO & TRUCKS - 0.01%
Volvo AB (b) 180 2,813
-----------------
TELECOMMUNICATIONS - 0.33%
Telefonaktiebolaget LM Ericsson AB (b) 5,000 69,375
-----------------
SWITZERLAND - 8.53%
BANKING - 4.03%
UBS AG (b) 6,000 840,000
-----------------
DRUG MANUFACTURER - 4.44%
Novartis AG (b) * 17,000 652,375
Roche Holdings Ltd (b) 3,000 273,957
-----------------
926,332
-----------------
FOOD & BEVERAGES - 0.06%
Nestle SA (b) 115 11,912
-----------------
UNITED KINGDOM - 19.95%
BANKS - 7.13%
Barclays Plc (b) 6,500 767,813
HSBC Holdings Plc (b) 9,970 718,837
-----------------
1,486,650
-----------------
CHEMICALS - 0.24%
Imperial Chemical Industries Plc (b) 2,000 49,500
-----------------
FOOD & BEVERAGES - 1.78%
Cadbury Schweppes Plc (b) 5,500 138,187
Diageo Plc (b) 2,500 94,063
Unilever Plc (b) 5,000 139,375
-----------------
371,625
-----------------
ROULSTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
HEALTHCARE SERVICES - 4.37%
AstraZeneca Group Plc (b) 10,258 $ 489,178
Glaxo Wellcome Plc (b) 3,500 203,656
SmithKline Beecham Plc (b) 3,350 218,378
-----------------
911,212
-----------------
MEDIA - 2.26%
Reuters Group Plc (b) 4,000 471,500
-----------------
OIL / REFINING / MARKETING - 2.98%
BP Amoco Plc (b) 12,000 611,250
Shell Transport & Trading Co (b) 220 10,821
-----------------
622,071
-----------------
TELECOMMUNICATIONS - 0.34%
British Telecommunications Plc (b) 595 70,805
-----------------
TRANSPORTATION - 0.85%
British Airways Plc (b) 4,000 177,500
-----------------
TOTAL COMMON STOCKS (COST $21,709,323) $ 20,876,873
-----------------
PRINCIPAL
AMOUNT VALUE
Money Market Securities - 19.61%
Firstar Treasury Fund, 5.50% (a) (Cost $4,090,736) 4,090,736 4,090,736
-----------------
TOTAL INVESTMENTS - 119.68% (COST $25,800,059**) 24,967,609
-----------------
LIABILITIES IN EXCESS OF OTHER ASSETS - (19.68)% (4,104,765)
-----------------
TOTAL NET ASSETS - 100.00% $ 20,862,844
=================
* Non-income producing
** Also represents cost for Federal income tax purposes.
(a) Variable rate security; the coupon rate shown represents the rate at October 31, 2000.
(b) American Depository Receipt / American Depository Shares
(c) New York Registry
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
ROULSTON GROWTH FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
<S> <C> <C>
COMMON STOCKS - 100.40% SHARES VALUE
COMPUTER HARDWARE - 1.16%
Sun Microsystems, Inc. * 3,500 $ 388,063
-----------------
COMPUTER SOFTWARE & SERVICES - 7.55%
Adobe Systems, Inc. 11,000 836,687
EMC Corp. * 11,200 997,500
Microsoft Corp. * 10,000 688,750
-----------------
2,522,937
-----------------
CONSUMER DURABLES - 0.71%
The Home Depot, Inc. 5,500 236,500
-----------------
CONSUMER NON-DURABLES - 4.82%
Anheuser-Busch Companies, Inc. 8,000 366,000
Keebler Foods Co. 8,000 324,000
PepsiCo, Inc. 19,000 920,313
-----------------
1,610,313
-----------------
DIVERSIFIED COMPANIES - 9.16%
General Electric Co. 30,000 1,644,375
Tyco International, Ltd. 25,000 1,417,188
-----------------
3,061,563
-----------------
DRUGS - 9.82%
ALZA Corp. * 5,000 404,688
Elan Corp. Plc * (b) 7,000 363,562
Johnson & Johnson 4,000 368,500
Merck & Co., Inc. 4,000 359,750
Pfizer, Inc. 35,000 1,511,563
Pharmacia Corp. 5,000 275,000
-----------------
3,283,063
-----------------
ENERGY - 5.03%
Anadarko Petroleum Corp. 6,000 384,300
Apache Corp. 5,700 315,281
Devon Energy Corp. 3,300 166,320
Noble Affiliates, Inc. 4,100 150,419
Ocean Energy, Inc. * 48,000 666,000
-----------------
1,682,320
-----------------
FINANCE - 8.10%
The Charles Schwab Corp. 5,000 175,625
Citigroup, Inc. 13,533 712,174
Federal National Mortgage Assoc. 11,000 847,000
Legg Mason, Inc. 6,000 311,625
MBNA Corp. 10,000 375,625
Waddell & Reed Financial, Inc. - Class A 9,000 286,875
-----------------
2,708,924
-----------------
ROULSTON GROWTH FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 - CONTINUED
COMMON STOCKS - CONTINUED SHARES VALUE
HEALTH PRODUCTS & SERVICES - 14.47%
Baxter International, Inc. 11,000 $ 904,063
Cardinal Health, Inc. 10,000 947,500
CVS Corp. 20,000 1,058,750
Medtronic, Inc. 5,000 271,562
Patterson Dental Co. * 14,000 438,375
Stryker Corp. 25,800 1,215,825
-----------------
4,836,075
-----------------
MATERIALS/SERVICES - 9.28%
Cintas Corp. 8,000 371,000
Flextronics International Ltd. * 10,000 380,000
Paychex, Inc. 35,250 1,998,234
Solectron Corp. * 8,000 352,000
-----------------
3,101,234
-----------------
NETWORKING PRODUCTS - 7.25%
Cisco Systems, Inc. * 23,000 1,239,125
Foundry Networks, Inc. * 5,000 332,187
JNI Corp. * 3,000 267,188
Juniper Networks, Inc. * 2,000 390,000
QLogic Corp. * 2,000 193,500
-----------------
2,422,000
-----------------
SEMICONDUCTORS - 11.01%
AVX Corp. 10,000 286,250
Altera Corp. * 14,400 589,500
Analog Devices, Inc. * 14,000 910,000
Dallas Semiconductor Corp. 3,400 134,725
Microchip Technology, Inc. * 6,375 201,609
Texas Instruments, Inc. 7,000 343,438
Vitesse Semiconductor Corp. * 7,000 489,562
Xilinx, Inc. * 10,000 724,375
-----------------
3,679,459
-----------------
TELECOMMUNICATIONS - 11.10%
ADC Telecommunications, Inc. * 53,000 1,132,875
Corning, Inc. 16,700 1,277,550
JDS Uniphase Corp. * 4,000 325,750
Nortel Networks Corp. 17,000 773,500
Tellabs, Inc. * 4,000 199,750
-----------------
3,709,425
-----------------
UTILITIES - 0.94%
Calpine Corp. * 4,000 315,750
-----------------
TOTAL COMMON STOCKS (COST $26,690,477) $ 33,557,626
-----------------
ROULSTON GROWTH FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 - CONTINUED
PRINCIPAL
AMOUNT VALUE
Repurchase Agreement - 3.55%
Firstar Bank, 4.25%, 11/1/00 (collateralized by Federal
Home Loan Mortgage, 6.30%, 9/1/29, Market
Value, $1,208,656, Cost $1,185,000) 1,185,000 $ 1,185,000
-----------------
Cash and Equivalents - 3.36%
Firstar Treasury Fund, 5.50% (a) (Cost $1,124,723) 1,124,723 1,124,723
-----------------
TOTAL INVESTMENTS - 107.31% (COST $29,000,200**) 35,867,349
-----------------
LIABILITIES IN EXCESS OTHER ASSETS - (7.31)% (2,441,851)
-----------------
TOTAL NET ASSETS - 100.00% $ 33,425,498
=================
* Non-income producing
** Also represents cost for Federal income tax purposes.
(a) Variable rate security; the coupon rate shown represents the rate at October 31, 2000.
(b) American Depository Receipt
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
ROULSTON GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
<S> <C> <C>
COMMON STOCKS - 93.23% SHARES VALUE
AUTO AND TRANSPORTATION - 6.59%
Boeing Co. 5,000 $ 339,063
Ford Motor Co. 9,000 235,125
Southwest Airlines Co. (a) 12,000 342,000
-----------------
916,188
-----------------
CHEMICALS - 1.55%
Great Lakes Chemical Corp. 3,400 113,475
OM Group, Inc. 2,200 101,750
-----------------
215,225
-----------------
CONSUMER PRODUCTS - NON-DURABLES - 1.22%
Ralston Purina Co. 7,000 169,750
-----------------
ENERGY - 13.17%
Apache Corp. 4,500 248,906
Baker Hughes, Inc. 7,000 240,625
BP Amoco Plc 4,000 203,750
Burlington Resources, Inc. 3,500 126,000
Chevron Corp. 2,500 205,312
Coastal Corp. 5,000 377,188
El Paso Energy Corp. 500 31,344
Tidewater, Inc. 6,000 277,125
Transocean Sedco Forex, Inc. 3,000 159,000
-----------------
1,869,250
-----------------
FINANCIAL DEPOSITORIES - 7.00%
Firstar Corp. 10,500 206,719
Mellon Financial Corp. 8,500 410,125
Wells Fargo & Co. 7,700 356,606
-----------------
973,450
-----------------
FINANCIAL SERVICES - 11.51%
Citigroup, Inc . 10,666 561,298
Morgan, J.P. & Co. 3,500 579,250
The Bank of New York, Inc. 8,000 460,500
-----------------
1,601,048
-----------------
FOOD AND BEVERAGE - 4.70%
Campbell Soup Co. 5,000 146,250
Hershey Foods Corp. 4,000 217,250
PepsiCo, Inc. 6,000 290,625
-----------------
654,125
-----------------
HEALTHCARE - 6.61%
American Home Products Corp. 6,500 412,750
Johnson & Johnson 5,500 506,688
-----------------
919,438
-----------------
ROULSTON GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 - CONTINUED
COMMON STOCKS - CONTINUED SHARES VALUE
Insurance - 14.18%
American International Group, Inc. 6,000 $ 588,000
AXA-UAP SA (c) 5,000 332,188
March & McLennan Companies, Inc. 4,500 588,375
The Chubb Corp. 5,500 464,406
-----------------
1,972,969
-----------------
MANUFACTURING - 1.76%
Illinois Tool Works, Inc. 2,500 138,906
Minnesota Mining & Manufacturing Co. 1,100 106,288
-----------------
245,194
-----------------
MATERIALS AND PROCESSING - 0.62%
Alcoa, Inc. 3,000 86,062
-----------------
PAPER AND PAPER PRODUCTS - 1.51%
Boise Cascade Corp. 3,500 100,406
Mead Corp. 3,800 109,963
-----------------
210,369
-----------------
PHARMACEUTICALS - 1.78%
Pharmacia Corp. 4,500 247,500
-----------------
RETAIL - 4.67%
CVS Corp. 6,000 317,625
Target Corp. 12,000 331,500
-----------------
649,125
-----------------
TECHNOLOGY - 3.60%
Dallas Semiconductor Corp. 7,000 277,375
Hewlett-Packard Co. 4,800 223,200
-----------------
500,575
-----------------
TELECOMMUNICATIONS - 0.71%
Verizon Communications 1,710 98,859
-----------------
TRANSPORTATION - 0.87%
United Parcel Service, Inc. 2,000 121,500
-----------------
UTILITIES - 10.92%
Alliant Corp. 10,000 303,125
Dominion Resources, Inc. 4,500 268,031
Duke Energy Corp. 7,500 648,281
Exelon Corp. 5,000 300,625
-----------------
1,520,062
-----------------
TOTAL COMMON STOCKS (COST $10,435,806) $ 12,970,689
-----------------
ROULSTON GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 - CONTINUED
PRINCIPAL
AMOUNT VALUE
Money Market Securities - 4.59%
Firstar Treasury Fund, 5.50% (b) (Cost $638,867) 638,867 $ 638,867
-----------------
REPURCHASE AGREEMENT - 2.49%
Firstar Bank, 4.25%, 11/01/00 (collateralized by Federal
Home Loan Mortgage, 6.30%, 9/1/29, Market
Value $353,885, Cost $347,000) 347,000 347,000
-----------------
TOTAL INVESTMENTS - 100.31% (COST $11,421,673**) 13,956,556
-----------------
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.31)% (43,490)
-----------------
TOTAL NET ASSETS - 100.00% $ 13,913,066
=================
** Also represents cost for Federal income tax purposes.
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at October 31, 2000.
(c) American Depository Shares
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
ROULSTON GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
PRINCIPAL
FIXED INCOME SECURITIES - 94.48% AMOUNT VALUE
Corporate Bonds - 27.12%
Automotive - 1.85%
DaimlerChrysler NA, 7.125%, 04/10/03 1,000,000 $ 1,000,348
-----------------
COMPUTER HARDWARE - 2.33%
Hewlett Packard Co., 7.15%, 06/15/05 250,000 250,646
Sun Microsystems, Inc., 7.35%, 08/15/04 1,000,000 1,008,000
-----------------
1,258,646
-----------------
COMPUTER SOFTWARE & SERVICES - 1.87%
Computer Science Corp., 7.50% 08/08/05 1,000,000 1,010,692
-----------------
CONSUMER DURABLES - 1.88%
Leggett & Platt, Inc. 7.65%, 02/15/05 1,000,000 1,019,374
-----------------
CONSUMER NON-DURABLES - 2.31%
Hasbro, Inc., 7.95%, 03/15/03 250,000 250,415
Proctor & Gamble Co., 6.60%, 12/15/04 1,000,000 996,845
-----------------
1,247,260
-----------------
FINANCE - 10.76%
Ford Motor Credit Co., 7.50%, 06/15/03 1,000,000 1,005,907
General Electric Capital Corp., 7.00%, 02/03/03 1,000,000 1,008,096
General Electric Capital Corp., 7.50%, 05/15/05 1,000,000 1,023,531
Goldman Sachs Group, 7.625%, 08/17/05 500,000 506,784
HSBC Finance, 7.40%, 04/15/03 1,000,000 1,010,027
Morgan Stanley Dean Witter & Co.,7.75%, 06/15/05 500,000 510,853
Travelers Group Salomon Smith Barney, 7.50%, 02/01/03 500,000 505,696
Wells Fargo & Co., 7.20%, 05/01/03 250,000 252,259
-----------------
5,823,153
-----------------
MANUFACTURING - ELECTRICAL PRODUCTS - 0.48%
Emerson Electric, 7.875%, 06/01/05 250,000 259,841
-----------------
TELECOMMUNICATIONS - 5.64%
Deutsche Telekom International, 7.75%, 06/15/05 1,000,000 1,017,993
Vodafone Airtouch Plc, 7.625%, 02/15/05 1,000,000 1,017,890
WorldCom, Inc. 7.875%, 05/15/03 1,000,000 1,017,519
-----------------
3,053,402
-----------------
TOTAL CORPORATE BONDS 14,672,716
-----------------
ROULSTON GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 - CONTINUED
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.79%
FEDERAL HOME LOAN MORTGAGE CORP - 9.17%
7.00%, 02/15/03 1,000,000 1,012,136
7.375%, 05/15/03 1,000,000 1,022,114
6.50%, 01/15/22 1,000,000 987,365
6.25%, 12/15/22 1,000,000 967,445
6.00%, 02/15/23 1,000,000 971,555
-----------------
4,960,615
-----------------
FANNIE MAE - 3.62%
6.55%, 10/25/20 1,000,000 990,295
6.25%, 10/25/22 1,000,000 967,375
-----------------
1,957,670
-----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 6,918,285
-----------------
U.S. GOVERNMENT OBLIGATIONS - 54.57%
U.S. TREASURY BILL - 0.09%
0.00%, 03/29/01 52,000 50,711
-----------------
U.S. TREASURY NOTES - 54.48%
6.625%, 05/31/02 2,000,000 2,016,578
6.50%, 05/15/05 3,000,000 3,082,254
6.75%, 05/15/05 7,000,000 7,259,224
6.50%, 08/15/05 4,500,000 4,626,108
6.875%, 05/15/06 4,000,000 4,194,328
6.50%, 10/15/06 3,500,000 3,610,555
6.625%, 05/15/07 4,500,000 4,685,818
-----------------
29,474,865
-----------------
TOTAL U.S. GOVERNMENT OBLIGATIONS 29,525,576
-----------------
TOTAL FIXED INCOME SECURITIES (COST $49,843,398) 51,116,577
-----------------
MONEY MARKET SECURITIES - 3.49%
Firstar Treasury Fund, 5.50% (a) (Cost $1,890,425) 1,890,425 1,890,425
-----------------
TOTAL INVESTMENTS - 97.97% (COST $51,733,823**) 53,007,002
-----------------
OTHER ASSETS IN EXCESS OF LIABILITIES - 2.03% 1,100,021
-----------------
TOTAL NET ASSETS - 100.0% $ 54,107,023
=================
** Also represents cost for Federal income tax purposes.
(a) Variable rate security; the coupon rate shown represents the rate at October 31, 2000.
</TABLE>
ROULSTON GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 - CONTINUED
AT OCTOBER 31, 2000, THE FUND'S OPEN SHORT POSITION FUTURES CONTRACTS WERE AS
FOLLOWS:
<TABLE>
<S> <C> <C> <C>
NUMBER
OF
SHORT CONTRACT EXPIRATION UNREALIZED
CONTRACTS TYPE DATE APPRECIATION
15 U.S. Treasury Note December 2000 7,349
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
ROULSTON FUNDS
STATEMENT OF ASSETS AND LIABILITIES - October 31, 2000
<TABLE>
<S> <C> <C> <C> <C> <C>
ROULSTON ROULSTON ROULSTON ROULSTON ROULSTON
EMERGING INTERNATIONAL GROWTH GROWTH AND GOVERNMENT
GROWTH FUND EQUITY FUND FUND INCOME FUND SECURITIES FUND
Assets:
Investments in securities at value
(cost $24,029,904, 25,800,059,
29,000,200, 11,421,673,
51,733,823 respectively) $ 25,316,936 $ 24,967,609 $ 35,867,349 $ 13,956,556 $ 53,007,002
Cash - - - 16,554 -
Receivable for capital stock sold 456,905 - 358,573 95,515 636,945
Receivable for securities sold 2,173,883 - 338,155 - -
Dividends and interest receivable 7,997 26,223 16,501 16,526 1,050,385
Variation Margin on futures
contracts (Note 7) - - - - 15,056
Other assets 772 21,745 1,893 1,248 1,736
-------------- -------------- -------------- --------------- --------------
Total assets 27,956,493 25,015,577 37,023,780 14,086,399 54,711,124
-------------- -------------- -------------- --------------- --------------
Liabilities:
Payable to custodian 113,078 76,077 2,026 - 544,532
Payable for capital stock redeemed 348,909 1,338,348 182,995 134,347 15,766
Payable for securities purchased 3,175,582 2,692,509 2,906,566 - -
Accrued expenses 32,516 - 54,581 37,700 32,618
Payable to adviser 15,244 12,444 10,805 1,286 11,185
Distributions payable - 33,355 - - -
-------------- -------------- -------------- --------------- --------------
Total liabilities 3,685,329 4,152,733 3,598,282 173,333 604,101
-------------- -------------- -------------- --------------- --------------
Net Assets:
Applicable to 773,339, 1,818,568,
2,237,006, 1,145,065 and
5,551,525 shares outstanding,
respectively $ 24,271,164 $ 20,862,844 $ 33,425,498 $ 13,913,066 $ 54,107,023
============== ============== ============== =============== ==============
Net Assets Consist of:
Capital paid-in 23,043,441 21,650,448 24,737,336 13,329,236 53,369,697
Undistributed net investment
income (loss) - (56,018) - 9,719 (2,278)
Accumulated net realized gain
(loss) on investments (59,309) 100,864 1,821,013 (1,960,772) (540,924)
Net unrealized appreciation (depreciation) on:
Investments 1,287,032 (832,450) 6,867,149 2,534,883 1,273,179
Futures contracts - - - - 7,349
-------------- -------------- -------------- --------------- --------------
$ 24,271,164 $ 20,862,844 $ 33,425,498 $ 13,913,066 $ 54,107,023
============== ============== ============== =============== ==============
Net asset value, offering and
redemption price per share $ 31.38 $ 11.47 $ 14.94 $ 12.15 $ 9.75
============== ============== ============== =============== ==============
</TABLE>
See accompnaying notes with are an integral part of the financial statements.
<PAGE>
ROULSTON FUNDS
STATEMENT OF OPERATIONS
<TABLE>
<S> <C> <C> <C> <C> <C>
For the Year Ended October 31, 2000
ROULSTON ROULSTON ROULSTON ROULSTON ROULSTON
EMERGING INTERNATIONAL GROWTH GROWTH AND GOVERNMENT
GROWTH FUND EQUITY FUND FUND INCOME FUND SECURITIES FUND
Investment Income:
Dividends $ 3,538 $ 265,177 (a) $ 134,463 $ 336,242 $ -
Interest 134,223 58,786 80,625 19,370 2,610,115
------------- ------------- ------------- ------------- -------------
Total investment income 137,761 323,963 215,088 355,612 2,610,115
------------- ------------- ------------- ------------- -------------
Expenses:
Investment advisory fees
(Note 3) 143,256 136,451 250,428 138,533 99,968
Distribution expense (Note 3) 47,752 45,484 83,476 46,178 99,995
Administration expense 24,792 24,031 52,079 35,424 49,835
Transfer agent fees 28,601 34,249 55,999 39,058 32,218
Legal fees 13,824 10,603 24,033 14,535 18,601
Pricing fees 12,352 14,949 18,677 12,594 20,647
Registration expenses 15,001 16,000 17,189 15,000 13,001
Custodian fees 22,555 19,327 25,058 31,661 22,424
Printing fees 5,311 5,628 11,588 3,164 10,732
Auditing fees 8,656 9,230 17,527 10,615 17,381
Insurance fees 1,587 1,140 14,870 11,221 4,662
Trustee fees 6,297 3,062 5,739 3,244 6,104
Amortization of organizational
costs (Note 1) - - 1,550 1,550 1,550
Miscellaneous expenses 6,518 4,905 10,273 3,352 1,396
------------- ------------- ------------- ------------- -------------
Total expenses 336,502 325,059 588,486 366,129 398,514
Expenses reimbursed (Note 3) (2,478) (2,060) (127,472) (89,762) (37,419)
------------- ------------- ------------- ------------- -------------
Net expenses 334,024 322,999 461,014 276,367 361,095
------------- ------------- ------------- ------------- -------------
Net Investment Income/(Loss) (196,263) 964 (245,926) 79,245 2,249,020
------------- ------------- ------------- ------------- -------------
Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) on
investments (62,373) 103,404 2,787,110 (1,248,294) (403,500)
Net change in unrealized
appreciation/(depreciation) on
investments 771,683 (931,776) 3,830,393 673,226 1,284,447
------------- ------------- ------------- ------------- -------------
Net realized and unrealized
gain/(loss) on investments 709,310 (828,372) 6,617,503 (575,068) 880,947 (b)
------------- ------------- ------------- ------------- -------------
Increase/(Decrease) in Net
Assets from Operations $ 513,047 $ (827,408) $ 6,371,577 $ (495,823) $ 3,129,967
============= ============= ============= ============= =============
</TABLE>
(a) Dividends are net of $39,365 of foreign taxes withheld.
(b) Includes unrealized appreciation from futures of $7,349.
See accompanying notes which are an integral part of the financial statements.
<PAGE>
ROULSTON FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
ROULSTON ROULSTON ROULSTON
EMERGING GROWTH INTERNATIONAL GROWTH
FUND EQUITY FUND FUND
-------------------------------------------------------------------------------------------
Year Period Year Period Year Year
Ended Ended Ended Ended Ended Ended
10/31/00 10/31/99 (a) 10/31/00 10/31/99 (a) 10/31/00 10/31/99
-------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ (196,263) $ (3,688) $ 964 $ (1,733) $ (245,926) $ (129,539)
Net realized gain/(loss) on
investments (62,373) 200,921 103,404 19,450 2,787,110 1,202,908
Net change in unrealized
appreciation (depreciation)
on investments 771,683 515,349 (931,776) 99,326 3,830,393 (5,781,566)
-------------- ------------- ------------- ------------- ------------- --------------
Increase/(Decrease) in net assets 513,047 712,582 (827,408) 117,043 6,371,577 (4,708,197)
-------------- ------------- ------------- ------------- ------------- --------------
Dividends and Distributions
to Shareholders:
From net investment income - - (55,252) - - -
From net realized gains (197,857) - (21,990) - (1,292,477) (10,062,251)
-------------- ------------- ------------- ------------- ------------- --------------
Total distributions (197,857) - (77,242) - (1,292,477) (10,062,251)
-------------- ------------- ------------- ------------- ------------- --------------
Capital Share Transactions:
Proceeds from shares sold 29,313,198 2,627,024 27,936,155 2,575,025 32,548,193 16,187,480
Reinvestment of dividends 197,568 - 76,689 - 1,281,949 9,955,688
Amount paid for repurchase
of shares (8,838,296) (56,102) (8,918,034) (19,384) (41,895,291) (40,348,304)
-------------- ------------- ------------- ------------- ------------- --------------
Net increase (decrease) from
capital transactions 20,672,470 2,570,922 19,094,810 2,555,641 (8,065,149) (14,205,136)
-------------- ------------- ------------- ------------- ------------- --------------
Total increase (decrease) in
net assets 20,987,660 3,283,504 18,190,160 2,672,684 (2,986,049) (28,975,584)
Net Assets:
Beginning of period 3,283,504 - 2,672,684 - 36,411,547 65,387,131
-------------- ------------- ------------- ------------- ------------- --------------
End of period $24,271,164 $ 3,283,504 $20,862,844 $ 2,672,684 $33,425,498 $36,411,547
============== ============= ============= ============= ============= ==============
Accumulated undistributed net
investment income
(loss) included in net assets
at end of period $ - $ - $ (56,018) $ - $ - $ (323,462)
-------------- ------------- ------------- ------------- ------------- --------------
Capital Share Transactions:
Shares sold 866,096 174,830 2,302,456 263,309 2,284,007 1,222,425
Shares issued on reinvestment
of dividends 7,288 - 6,224 - 100,624 614,567
Shares repurchased (269,693) (5,182) (742,320) (2,009) (3,003,110) (2,956,848)
-------------- ------------- ------------- ------------- ------------- --------------
Net increase (decrease) from
capital transactions 603,691 169,648 1,566,360 261,300 (618,479) (1,119,856)
============== ============= ============= ============= ============= ==============
</TABLE>
(a) For the period 7/1/99 (inception) to 10/31/99.
<PAGE>
ROULSTON FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C> <C> <C>
ROULSTON ROULSTON
GROWTH AND INCOME GOVERNMENT
FUND SECURITIES FUND
-----------------------------------------------------------
Year Period Year Period
Ended Ended Ended Ended
10/31/00 10/31/99 10/31/00 10/31/99
------------------------------------------------------------
Operations:
Net investment income (loss) $ 79,245 $ 15,301 $ 2,249,020 $ 253,985
Net realized gain/(loss) on
investments (1,248,294) 5,434,280 (403,500) (118,323)
Net change in unrealized
appreciation (depreciation)
on investments 673,226 (5,371,568) 1,284,447 (226,890)
-------------- ------------- ------------- -------------
Increase/Decrease in net assets (495,823) 78,013 3,129,967 (91,228)
-------------- ------------- ------------- -------------
Dividends and Distributions
to Shareholders:
From net investment income (40,906) (22,171) (2,251,297) (253,966)
From net realized gains (5,422,162) (2,716,374) - -
-------------- ------------- ------------- -------------
Total distributions (5,463,068) (2,738,545) (2,251,297) (253,966)
-------------- ------------- ------------- -------------
Capital Share Transactions:
Proceeds from shares sold 6,506,301 23,543,757 56,663,444 12,015,925
Reinvestment of dividends 5,278,830 1,813,267 1,511,561 234,777
Amount paid for repurchase
of shares (21,783,348) (25,873,256) (17,684,899) (4,224,017)
-------------- ------------- ------------- -------------
Net increase (decrease) from
capital transactions (9,998,217) (516,232) 40,490,106 8,026,685
-------------- ------------- ------------- -------------
Total increase (decrease) in
net assets (15,957,108) (3,176,764) 41,368,776 7,681,491
Net Assets:
Beginning of period 29,870,174 33,046,938 12,738,247 5,056,756
-------------- ------------- ------------- -------------
End of period $13,913,066 $29,870,174 $54,107,023 $12,738,247
============== ============= ============= =============
Accumulated undistributed net
investment income
(loss) included in net assets
at end of period $ 9,719 $ (28,583) $ (2,278) $ (15)
-------------- ------------- ------------- -------------
Capital Share Transactions:
Shares sold 568,123 1,445,258 5,660,049 1,224,142
Shares issued on reinvestment
of dividends 463,934 108,971 157,051 22,213
Shares repurchased (1,894,926) (1,626,151) (1,573,640) (423,245)
-------------- ------------- ------------- -------------
Net increase (decrease) from
capital transactions (862,869) (71,922) 4,243,460 823,110
============== ============= ============= =============
</TABLE>
See accompany notes which are an integral part of the financial statements.
<PAGE>
ROULSTON FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<S> <C> <C> <C> <C>
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented
ROULSTON
ROULSTON EMERGING INTERNATIONAL
GROWTH FUND EQUITY FUND
------------------------------- -------------------------------
Year Period Year Period
Ended Ended Ended Ended
10/31/00 10/31/99 (a) 10/31/00 10/31/99 (a)
------------------------------- -------------------------------
Net Asset Value, beginning of
period $ 19.35 $ 10.00 $ 10.23 $ 10.00
-------------- -------------- -------------- -------------
Income from Investment
Operations:
Net investment income (loss) (0.35) (0.02) - (0.01)
Net realized and unrealized gain
(loss) on investments 13.19 9.37 1.31 0.24
-------------- -------------- -------------- -------------
Total from investment operations 12.84 9.35 1.31 0.23
-------------- -------------- -------------- -------------
Less Distributions:
From net investment income - - (0.03) -
From realized capital gains (0.81) - (0.04) -
-------------- -------------- -------------- -------------
Total distributions (0.81) - (0.07) -
-------------- -------------- -------------- -------------
Net Asset Value, end of period $ 31.38 $ 19.35 $ 11.47 $ 10.23
============== ============== ============== =============
Total Return 67.22% 93.30% (b) 12.74% 2.30% (b)
Ratios/Supplemental Data:
Net Assets, end of period (000) $ 24,271 $ 3,284 $ 20,863 $ 2,673
Ratio of expenses to average
net assets
before reimbursement of
expenses by Adviser 1.76% 11.54% (c) 1.79% 15.24% (c)
after reimbursement of
expenses by Adviser 1.75% 1.95% (c) 1.78% 1.95% (c)
Ratio of net investment income
to average net assets
before reimbursement of
expenses by Adviser (1.04)% (10.46)(c) (0.01)% (13.86)(c)
after reimbursement of
expenses by Adviser (1.03)% (0.87)(c) 0.01% (0.57)(c)
Portfolio turnover 302.63% 79.91% (b) 58.37% 51.26% (b)
(a) For the period 7/1/99 (inception) to 10/31/99.
(b) For periods of less than one full year, total return and portfolio turnover
are not annualized.
(c) Annualized
</TABLE>
<PAGE>
ROULSTON FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<S> <C> <C> <C> <C> <C>
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented
ROULSTON GROWTH
FUND
--------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
--------------------------------------------------------------------------------
Net Asset Value, beginning of
period $ 12.75 $ 16.45 $ 18.88 $ 15.50 $ 13.55
-------------- -------------- -------------- ------------- -----------
Income from Investment
Operations:
Net investment income (loss) (0.11) (0.06) (0.03) (0.01) 0.02
Net realized and unrealized gain
(loss) on investments 2.78 (1.03) (1.30) 4.55 2.16
-------------- -------------- -------------- ------------- -----------
Total from investment operations 2.67 (1.09) (1.33) 4.54 2.18
-------------- -------------- -------------- ------------- -----------
Less Distributions:
From net investment income - - - (0.01) (0.03)
From realized capital gains (0.48) (2.61) (1.10) (1.15) (0.20)
-------------- -------------- -------------- ------------- -----------
Total distributions (0.48) (2.61) (1.10) (1.16) (0.23)
-------------- -------------- -------------- ------------- -----------
Net Asset Value, end of period $ 14.94 $ 12.75 $ 16.45 $ 18.88 $ 15.50
============== ============== ============== ============= ===========
Total Return 21.56% (9.18)% (7.73)% 31.00% 16.28%
Ratios/Supplemental Data:
Net Assets, end of period (000) $ 33,425 $ 36,412 $ 65,387 $ 77,017 $ 57,198
Ratio of expenses to average
net assets
before reimbursement of
expenses by Adviser 1.76% 1.57% 1.43% 1.58% 1.69%
after reimbursement of
expenses by Adviser 1.38% 1.38% 1.38% 1.38% 1.38%
Ratio of net investment income
to average net assets
before reimbursement of
expenses by Adviser (1.12)% (0.44)% (0.18)% (0.25)% (0.16)%
after reimbursement of
expenses by Adviser (0.74)% (0.26)% (0.13)% (0.05)% 0.15%
Portfolio turnover 98.87% 121.21% 52.23% 41.16% 58.01%
</TABLE>
<PAGE>
ROULSTON FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<S> <C> <C> <C> <C> <C>
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented
ROULSTON GROWTH AND INCOME
FUND
--------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
--------------------------------------------------------------------------------
Net Asset Value, beginning of
period $ 14.88 $ 15.89 $ 17.87 $ 14.22 $ 12.29
-------------- -------------- -------------- ------------- -----------
Income from Investment
Operations:
Net investment income (loss) 0.05 0.01 0.01 0.05 0.13
Net realized and unrealized gain
(loss) on investments 0.10 (0.08) (0.15) 4.83 2.04
-------------- -------------- -------------- ------------- -----------
Total from investment operations 0.15 (0.07) (0.14) 4.88 2.17
-------------- -------------- -------------- ------------- -----------
Less Distributions:
From net investment income (0.03) (0.01) - (0.09) (0.14)
From realized capital gains (2.85) (0.93) (1.84) (1.14) (0.10)
-------------- -------------- -------------- ------------- -----------
Total distributions (2.88) (0.94) (1.84) (1.23) (0.24)
-------------- -------------- -------------- ------------- -----------
Net Asset Value, end of period $ 12.15 $ 14.88 $ 15.89 $ 17.87 $ 14.22
============== ============== ============== ============= ===========
Total Return 2.28% (1.07)% (1.20)% 36.61% 17.77%
Ratios/Supplemental Data:
Net Assets, end of period (000) $ 13,913 $ 29,870 $ 33,047 $ 30,841 $ 23,071
Ratio of expenses to average
net assets
before reimbursement of
expenses by Adviser 1.98% 1.61% 1.53% 1.76% 1.83%
after reimbursement of
expenses by Adviser 1.50% 1.48% 1.49% 1.50% 1.50%
Ratio of net investment income
to average net assets
before reimbursement of
expenses by Adviser (0.06)% (0.29)% (0.02)% 0.03% 0.58%
after reimbursement of
expenses by Adviser 0.43% 0.04% 0.02% 0.29% 0.91%
Portfolio turnover 95.46% 126.99% 40.43% 42.45% 34.02%
</TABLE>
<PAGE>
ROULSTON FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<S> <C> <C> <C> <C> <C>
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented
ROULSTON GOVERNMENT SECURITIES
FUND
--------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
--------------------------------------------------------------------------------
Net Asset Value, beginning of
period $ 9.74 $ 10.43 $ 9.90 $ 9.75 $ 9.84
-------------- -------------- -------------- ------------- -----------
Income from Investment
Operations:
Net investment income (loss) 0.54 0.47 0.49 0.49 0.49
Net realized and unrealized gain
(loss) on investments 0.01 (0.69) 0.53 0.15 (0.05)
-------------- -------------- -------------- ------------- -----------
Total from investment operations 0.55 (0.22) 1.02 0.64 0.44
-------------- -------------- -------------- ------------- -----------
Less Distributions:
From net investment income (0.54) (0.47) (0.49) (0.49) (0.53)
From realized capital gains - - - - -
-------------- -------------- -------------- ------------- -----------
Total distributions (0.54) (0.47) (0.49) (0.49) (0.53)
-------------- -------------- -------------- ------------- -----------
Net Asset Value, end of period $ 9.75 $ 9.74 $ 10.43 $ 9.90 $ 9.75
============== ============== ============== ============= ===========
Total Return 5.92% (2.09)% 10.61% 6.76% 4.58%
Ratios/Supplemental Data:
Net Assets, end of period (000) $ 54,107 $ 12,738 $ 5,057 $ 4,411 $ 5,752
Ratio of expenses to average
net assets
before reimbursement of
expenses by Adviser 1.00% 2.34% 2.19% 2.70% 2.05%
after reimbursement of
expenses by Adviser 0.90% 0.90% 0.90% 0.90% 0.90%
Ratio of net investment income
to average net assets
before reimbursement of
expenses by Adviser 5.53% 3.38% 3.60% 3.23% 3.78%
after reimbursement of
expenses by Adviser 5.62% 4.81% 4.89% 5.03% 4.93%
Portfolio turnover 228.10% 837.17% 89.89% 21.01% 21.23%
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
ROULSTON FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
NOTE 1. ORGANIZATION
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 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.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust.
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 readily 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 report 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. Roulston & Company, Inc., as the Funds' adviser ("Roulston") 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 amortized
cost, which approximates market value.
REPURCHASE AGREEMENTS: All Funds may enter into repurchase agreements with
financial institutions deemed to be credit worthy by Roulston 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.
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 annually. Accordingly,
no provisions for Federal income taxes have been made in the accompanying
financial statements.
ROULSTON FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 - CONTINUED
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
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.
DEFERRED ORGANIZATION COSTS: Organizational costs of the Acquiring Funds
are being amortized on a straight-line basis over five years commencing April
29, 1995. The International Equity Fund and the Emerging Growth Fund did not
incur any organizational costs.
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.
OTHER: Generally accepted accounting principles require that permanent
financial reporting tax differences relating to shareholder distributions be
reclassified to paid in capital and/or net realized gains.
NOTE 3. 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 Funds 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 the Emerging Growth Fund not
to exceed 1.38%, 1.50%, 0.90%, 1.95% and 1.95%, respectively.
ROULSTON FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 - CONTINUED
NOTE 3. RELATED PARTY TRANSACTIONS - CONTINUED
Information regarding these transactions is as follows for the year ended
October 31, 2000:
<TABLE>
<S> <C> <C> <C> <C> <C>
Emerging International
Growth Equity Growth Growth and Government
Fund Fund Fund Income Fund Fund
-------------------------------------------------------------------------------------------------------
INVESTMENT ADVISORY FEES:
Fees before waiver $143,256 $136,451 $250,428 $138,533 $99,968
Fees waived (2,478) (2,060) (127,472) (89,762) (37,419)
RULE 12B-1 FEES 47,752 45,484 83,476 46,178 99,995
--------- --------- --------- --------- ---------
Net fees and expenses to
related parties $188,530 $179,875 $206,432 $94,949 $162,544
========= ========= ========= ========= =========
</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 4. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term
securities) for the year ended October 31, 2000 were:
Proceeds
Purchases from Sales
-----------------------------------------------------------
Emerging Growth Fund $ 70,204,093 $ 50,770,945
International Equity Fund 29,116,672 9,928,624
Growth Fund 32,792,886 31,993,609
Growth and Income Fund 17,808,056 33,495,354
Government Fund 118,488,777 86,376,669
NOTE 5. UNREALIZED APPRECIATION AND DEPRECIATION
At October 31, 2000, the gross unrealized appreciation and depreciation of
securities for book and Federal income tax purposes consisted of the following:
Gross Gross Net
Unrealized Unrealized Unrealized
Appreciation (Depreciation) App/(Dep)
-----------------------------------------------------------------------------
Emerging Growth Fund $ 2,886,022 $ (1,598,990) $ 1,287,032
International Equity Fund 955,734 (1,788,184) (832,450)
Growth Fund 7,378,246 (511,097) 6,867,149
Growth and Income Fund 2,873,369 (338,486) 2,534,883
Government Fund 1,287,186 (6,658) 1,280,528
ROULSTON FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 - CONTINUED
NOTE 6. RISKS RELATING TO FOREIGN SECURITY INVESTMENTS:
Securities in which the International Equity Fund invest may be denominated
or quoted in currencies other that 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 area such as 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 7. VARIATION MARGIN ON FUTURES CONTRACT
Each Fund 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. Risks of entering into futures contracts include
the possibility that there may be an illiquid market at the time Roulston, as
investment advisor may be attempting to sell some or all of the Funds 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.
NOTE 8. ESTIMATES
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.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Trustees of Roulston Funds:
We have audited the accompanying statements of assets and liabilities of
Roulston Funds (comprising, respectively, the Roulston Emerging Growth Fund, the
Roulston International Equity Fund, the Roulston Growth Fund, the Roulston
Growth and Income Fund, and the Roulston Government Securities Fund) including
the schedules of portfolio investments, as of October 31, 2000, the related
statements of operations, the statements of changes in net assets and financial
highlights for each of the periods indicated. These financial statements and
financial highlights are the responsibility of the Roulston Funds' management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 2000, by correspondence with the custodian and brokers. An audit
also included assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting the Roulston Funds as of October 31,
2000, and the results of their operations, the changes in their net assets and
their financial highlights for the periods indicated, in conformity with
generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio
November 27, 2000
