A MESSAGE FROM THE VINTAGE FUNDS
Dear Shareholders,
Thank you for being part of our Vintage Funds family, as we continue our
dedication to your mutual fund investment needs and to assisting education,
charity and not-for-profit organizations through our V.O.I.C.E. (Vision for
Ongoing Investment in Charity and Education)sm Program.
Recent Market Behavior
The Federal Reserve continues to indicate by its actions and through its
publications that when the economy slows to around a 1% annual rate, the Fed
will initiate stimulative action, and when the economy nears a 4% annual
rate, the Fed will implement restraints. This "soft landing" engineered by
the Fed is maintaining the economy's gradual, non-inflationary growth with
modest productivity gains. The long-term perspective anticipates that the
economy will continue to grow at a healthy, low-inflationary rate in a 1-4%
band for several years to come, provided that the existing Fed key personnel
and its present philosophy should continue. The "steady-as-she-goes" policy
at the Fed should continue to provide support for this market in the very
near term, and would be an excellent foundation and fertile soil for a long-
term bull market.
As a result of the Fed's recent actions, the economy has more momentum than
would otherwise have been the case. The current expansion is now over 5 1/2
years old and while growth has been persistent, the expansion has been one of
the slowest on record. We expect slower growth and no acceleration in
inflation as the economy moves into the fourth quarter. Slower growth and
stable inflation will make the Fed cautious in raising rates. While this
approach is likely to please the markets, it will eventually put the Fed
behind in its fight against higher prices.
Summary
The economy continues to grow at a controlled rate in what is proving to be
an historically extensive period of economic expansion. Attention in coming
months will be directed at the unemployment and wage reports as giving clues
to future inflation, and the November elections.
While a recession is more probable than rapid growth in our opinion, what we
think has the highest probability of occuring, however, is slow, sustainable
real GDP growth in the 2-3% range or the so called "soft landing" scenario.
In that scenario, inflation should remain relatively low, causing capital
spending to continue to expand. Our funds remain well positioned to respond
to this type of market environment.
Six months ago we cautioned in the semiannual report that the financial
markets are not a one-way street and that investors should prepare for the
occasional rough patch by maintaining a balanced portfolio of stock funds,
bond funds, and money market funds. We believe that our earlier caution
remains valid today.
In summary, we appear to be in the more mature stages of a multi-year
expansion, but there will, along the way, be reactions, consolidations and
fluctuations as groups of investors act in accordance with their varied
investment strategies and interact with each other to create ripples and
waves of price rises in the major indexes.
The Vintage Money Market Funds
Unless unexpected changes occur in the very near term, we expect inflation to
remain subdued and therefore, interest rates should remain relatively low for
the next few years, especially if the Federal Reserve in cooperation with the
central banks of seven major industrial nations, can continue to be
successful in maintaining slow, non-inflationary growth in their respective
economies. In the near term, we believe that the greatest influence on
interest rates will continue to be the rate of inflation.
For some time now, our portfolio managers have been taking steps to assure
high-grade, low-risk portfolios for the two Vintage money market funds. Our
priorities are safety first, along with liquidity, and yield second. Our
money market funds remain committed to professional responsiveness to the
changing financial markets, ensuring that the Vintage portfolios continue to
seek the highest possible safety and returns consistent with the fundamental
objectives and investment policies of each portfolio. In the meantime, as we
all anxiously anticipate and monitor the economy, your funds continue to
provide high quality, conservative, investments with excellent service.
The Vintage Equity and Fixed Income Funds
During the first quarter, our Asset Allocation and Aggressive Growth Fund-of-
Funds opened to the public. These two funds are now actively invested to
achieve their respective investment objectives outlined in the prospectus.
The conservative Asset Allocation Fund's primary mission is to adequately
allocate the Fund's assets so as to not be subject to radical drops in the
market indexes while at the same time, rarely outdistancing those indexes
during radical lifts in the market as well. The Fund will trade off
percentages of extreme high index gains to prevent the extreme drops in those
same indexes during volatile periods.
The Aggressive Growth Fund seeks to primarily invest in the highest quality
no-load mutual funds consistent with the top Morningstar rated mutual funds
of similar objective. We were most satisfied with these two portfolio
compositions, the achievement of their stated investment objectives, and how
well they each have weathered a choppy market and the July market drops.
Some advantages that fund-of-funds have over traditional mutual funds are:
they are an easy product to understand; they offer on-going management in
addition to convenience in executing trades; they provide ongoing risk
management through diversification of multiple funds indexes and portfolio
managers and customers are able to use dollar cost averaging to contribute
across various types of market indexes investments. It is our opinion that
dollar cost averaging is still the best way to invest, particularly when
prices are high. To individually allocate assets across a diversification of
mutual funds can be more difficult and expensive than by simply investing in
a fund-of-funds environment.
Early in the second quarter, our Starwood Strategic Fund opened to the
public. The Starwood Strategic Fund, a traditional mutual fund, primarily
invests in strong, financially seasoned U.S. growth stocks. We are honored
to welcome Andrew Beer of Starwood Corporation as the Starwood Fund's
investment sub-adviser. Andrew has over thirty years of investment
management experience and brings a stellar performance history to the Vintage
Funds. We look forward to and welcome his contribution to our investment
family.
As of the September 30, 1996 date, due to the relatively small asset levels,
one of our two traditional mutual funds, The Fiduciary Value Fund, remained
uninvested and could not therefore commence operations to seek its specific
investment performances in accordance with the investment objectives detailed
in the prospectus. Until the Adviser and its affiliates have supplied
sufficient assets to commence efficient investment operations, this
traditional fund will only be available for investment by Vintage Advisers,
Inc. and its affiliated companies and personnel. It is anticipated that the
Fiduciary Value Fund will be able to commence operations and invest in
accordance with the investment objectives stated in its prospectus during the
last quarter of 1996.
Additionally, as of the September 30, 1996 date, due to the relatively small
asset levels, our two fixed income fund-of-funds (The Taxable Fixed Income
Fund and The Tax-Free Municipal Fixed Income Fund) remained uninvested and
could not therefore commence operations to seek their specific investment
performances in accordance with their respective investment objectives
detailed in the prospectus. Until the Adviser and its affiliates have
supplied sufficient assets to commence investment operations these two fund-
of-funds will only be available for investment by Vintage Advisers, Inc. and
its affiliated companies and personnel.
Our V.O.I.C.E.sm Program
The Vintage Funds are proud of our innovative program, V.O.I.C.E. (Vision for
Ongoing Investment and Education)sm by which individual and institutional
customers of the Vintage Funds can cause contributions to be made to
educational, charitable, religious and other philanthropic not-for-profit
organizations at no cost to the shareholder or the Funds.
One of the primary focuses of the V.O.I.C.E.sm program is to support and
supplement education in America by funding those not-for-profit organizations
which assist our universities and colleges, especially endowments,
foundations and general scholarship funds. At a time when educational budgets
are consistently being reduced, it is our sincerest hope that V.O.I.C.E.sm
will be just one of many ways that we can all give "a little bit of ourselves"
back to our communities, its schools, colleges, universities, churches and
other not-for-profit organizations. This unique fundraising program was
designed and invented by Vintage Advisers, Inc. to assist not-for-profit
organizations in their funding efforts. We hope that you will participate
in the Program and direct us to contribute on your behalf to the no-for-profit
of your choosing.
Thanks to your support of V.O.I.C.E.sm in 1996, its initial year, over 60
university and college endowments, foundations and general scholarship funds
are benefiting from the Program.
In closing, we want to thank you for the opportunity to serve your investment
and philanthropic interests. Your business and personal relationship is
sincerely appreciated here, and we look forward to providing the highest
quality of service to you for many years to come.
Respectfully Submitted,
Timothy L. Ashburn
President
THE STARWOOD STRATEGIC FUND
Performance and Investment Summary
Cumulative Total Return
Cummulative Total Returns show how the value of the
Fund's shares changed over a set period--in this case,
since the inception of the Fund on April 4, 1996--and
assume that you held the shares through the entire
period and reinvested all distributions into the Fund.
These Cummulative Total Return figures are compared to
the benchmark performance of the S&P 500--a widely
recognized, unmanaged index of common stocks. Please
note that indices do not take into account fees and
expenses of investing in the individual securities that
they track, and that individuals cannot invest directly
in any index.
Growth of $10,000 Investment
(Line graph comparing the growth of a $10,000
investment in the Starwood Strategic Fund to the
performance of the S&P 500 during the period from
4/4/96 to 9/30/96)
Investment Summary
Top Ten Holdings as of September 30, 1996
Percent of Fund's Total Investments
Amgen Inc. 3.9%
Bergen Brunswig Corporation 3.7%
G & K Services Inc. Class A 3.6%
McKesson Corporation 3.6%
Kimberly Clark 3.5%
Groupo Radio Centro ADR 3.4%
American International 3.3%
Andrew Corporation 3.1%
Computer Associates International 3.1%
Rite Aid Corporation 3.0%
Cummulative Total Returns
Period ended Since Fund Inception
September 30, 1996 April 4, 1996*
Starwood Strategic Fund -1.91%
S&P 500 Index 4.81%
*Not Annualized
Performance
There are several ways to evaluate a fund's
historical performance: total percentage
change in value, the average annual
percentage change, or the growth of a
hypothetical $10,000 investment. A fund's
Total Return includes changes in share price,
plus reinvestment of any dividends (income)
and capital gains (the profits the fund earns
when it sells securities that have grown in
value).
Understanding Performance
How a fund performed in the past is no
guarantee of how it will perform in the future.
The stock market, for example, has a history
of growth in the long term and volatility in the
short term. The Fund's principal value and
investment returns fluctuate so that upon
redemption you may receive more or less than
your original investment.
Fund Information
Inception Date: April 4, 1996
Assets: $483,457 as of September 30, 1996
Manager: Andrew E. Beer
Investment Review
Q: Who should consider the Starwood Strategic Fund?
A: The Starwood Strategic Fund invests principally in a diversified
portfolio of equity securities of seasoned, financially strong growth
companies. Current income is an incidental consideration and many of the
Fund's investments should provide regular dividends which may grow over time.
Accordingly, the Fund is suitable for investors with long-term investment
goals.
Q: What are your views on the economic factors that have affected the market
during the past six months?
A: We believe a long term, post cold war, bull market remains intact and is
likely to continue for many months and even years to come. Fears expressed
earlier this year that the economy was growing too fast caused a steep
reaction mid-year in the technology sector as well as other somewhat cyclical
businesses. However, when it became evident that wage and price inflation
was muted, and when the markets were assuaged by comments from Mr.
Greenspan, head of the Federal Reserve, that existing measurements of
inflation probably overstated actual inflationary rates, the market responded
favorable and stocks of strong consistent growth companies rebounded.
Q: How did the Fund perform?
A: The Fund began to invest to meet its objectives on April 4, 1996. The
Fund's performance for this period ended September 30, 1996 was -1.91%. For
the same period, the Standard and Poor's 500 Index returned 4.81%.
Q: What factors contributed to the Fund's below-market performance?
A: The primary factors were the market's mid-year correction, which
momentarily impacted many growth companies and technology sector companies in
the Fund's portfolio. In addition to the market corrections, the Fund, in
its initial months, incurred certain extraordinary expenses that are
associated with the Fund's startup. These two simultaneous extraordinary
events contributed to the less than favorable comparison with the S&P 500.
Q: How have you positioned the Fund's portfolio to improve performance?
A: The Starwood portfolio consists mostly of stocks of non-cyclical
companies evidencing consistent, strong growth which may appreciate to
multiple earnings, and some stocks of companies that, in addition to strong
growth, may spurt ahead due to unusual circumstances or opportunities. The
portfolio is well balanced between high capitalization stocks such as Merck,
Proctor & Gamble and United Technologies, and some lesser known stocks that
are growing faster but somewhat more erratically such as ALCO Standard
Corporation. We believe this balanced and prudent time-tested approach will
yield favorable results over the long term.
Q: Based on the market's current environment, what is Starwood's investment
strategy for the months ahead?
A: In the current environment of low inflation, post cold war,
reconstruction of industry, and in the light of the high probability that we
will continue the next four years with a Democratic President and a
Republican Congress, we believe a relatively mild atmosphere exists for the
market to continue to undulate upward. Our expectations are that we will not
see any devastating or sweeping changes that have adverse consequences for
the market coming from Washington D.C.. We anticipate the future political
administration will be reasonably balanced and will remain on an even keel.
We believe there will be periods of temporary uncertainty and short-term
market fluctuation. When these instances occur, we will prune and upgrade the
portfolio as necessary. However, we believe the market will continue to grow
at a moderate rate for the foreseeable future. Accordingly, we will continue
to select the best values and growth oriented investment opportunities, based
on our investment selection criteria, that in our opinion will produce
favorable returns.
The views expressed in this report are those of the Adviser through the end
of the period stated on the cover. The Adviser's views and opinions are
based on economic data, market conditions and other information and are
subject to change at any time.
THE AGGRESSIVE GROWTH FUND
Performance and Investment Summary
Cumulative Total Return
Cummulative Total Returns show how the value of the
Fund's shares changed over a set period--in this case,
since the inception of the Fund on March 13, 1996--
and assume that you held the shares through the
entire period and reinvested all distributions into the
Fund. These Cummulative Total Return figures are
compared to the benchmark perofrmance of the S&P
500--a widely recognized, unmanaged index of
common stocks. Please note that indices do not take
into account fees and expenses of investing in the
individual securities that they track, and that
individuals cannot invest directly in any index.
Growth of $10,000 Investment
(Line graph comparing the growth of a
$10,000 investment in the Aggressive
Growth Fund to the performance of
the S&P 500 during the period from
3/13/96 to 9/30/96)
Investment Summary
Top Ten Holdings as of September 30, 1996
Percent of Fund's Total Investments
Dreyfus Aggressive Growth Fund 9.7%
Kaufmann Fund 8.5%
IAI Emerging Growth Fund 7.8%
PBHG Growth Fund 7.7%
Baron Asset Fund 7.3%
Stein Rowe Capital Opportunities Fund 7.0%
PBHG Emerging Growth Fund 5.9%
Galaxy Small Company Equity Fund 5.7%
Warburg Pincus Emerging Growth Fund 4.4%
Navellier Aggressive Growth Fund 4.0%
Cumulative Total Returns
Period ended Since Fund Inception
September 30, 1996 March 13, 1996*
Aggressive Growth Fund -1.51%
S&P 500 Index 7.64%
*Not annualized
Performance
There are several ways to evaluate a fund's
historical performance: total percentage change
in value, the average annual percentage change,
or the growth of a hypothetical $10,000
investment. A fund's Total Return includes
changes in share price, plus reinvestment of any
dividends (income) and capital gains (the profits
the fund earns when it sells securities that have
grown in value).
Understanding Performance
How a fund performed in the past is no guarantee
of how it will perform in the future. The stock
market, for example, has a history of growth in
the long term and volatility in the short term.
The Fund's principal value and investment
returns fluctuate so that upon redemption you
may receive more or less than your original
investment.
Fund Information
Inception Date: March 13, 1996
Assets: $573,522 as of September 30, 1996
Manager: Lynn E. Wood
Investment Review
Q: Who should consider the Aggressive Growth Fund?
A: The Aggressive Growth Fund is particularly suitable for investors with
long term, wealth building investment objectives such as providing
educational assistance for their children, home ownership, building a
comfortable retirement nestegg, or simply becoming financially independent.
Q: What is unique about The Aggressive Growth Fund?
A: Basically, it is a fund-of funds. The Aggressive Growth Fund invests in
such well known fund families as Fidelity, Kaufman, Janus and T. Rowe Price
as well as other emerging and small mutual funds. Investors who value the
importance of diverisity will immediately recognize the inherit benefit of
being able to reduce risk and improve the odds of increasing earnings by
spreading money among other mutual funds run by some of the foremost money
managers.
Q: How did the Fund perform?
A: The Fund began to invest to meet its objectives in March of this year. The
Fund's performance for the period ended September 30, 1996 was -1.51%. For
the same period the Standard and Poor's 500 Index returned 7.64%.
Q: What factors contributed to the Fund's below-market performance?
A: This summer's sudden market selloff has been the single most significant
factor. July's correction impacted many of the small, emerging growth
companies and technology sector stocks that make up the Aggressive Growth
Fund's component portfolios. Additionally, the Fund began investing to meet
its objectives March 13, 1996 and, in its initial month, incurred certain
extraordinary startup expenses which also contributed to the less than
favorable comparison with the S&P 500.
Q: Have these challenges caused you to change your investment strategy?
A: No. Our strategy simply stated is to pick the best funds, that in our
opinion have demonstrated the tendency over the long haul to aggressively
outperform the market, or, that we believe are positioned to capitalize on
their particular investment strategy. To the degree that market
circumstances become more or less volitile we will adjust our portfolio
holdings accordingly. Currently, 48% of the component funds in The Aggressive
Growth Fund portfolio are funds that have received Morningstar's 5-star
rating as of September 30, 1996*
*Morningstar Inc., is a leading independent mutual fund ranking
service. A Five Star rating, the highest rating available,
denotes funds that offer above-average returns, below-average
risk, or both. Only the top 10% of funds in each class tracked
by Morningstar receive the 5-star rating.
Q: What is the Fund's current strategy for the months ahead?
A: Steady as she goes. We believe the current economic conditions are
favorable to growth. Evidence suggests that the Fed's recent decision in
September to take no action in regards to increasing short-term interest
rates is a confirmation of a slowing economy. Such conditions help to ease
inflationary concerns and allow the companies composing the Funds's component
portfolios to continue to develop and sell innovative products and services
that are essential to a healthy economy. Additionally, July's market
correction has provided an opportunity for the Fund's component portfolio
managers to increase their holdings in target companies at much reduced
prices. We believe over the long term, despite interim market volatility,
the prospects are exceedingly favorable that our Fund's component portfolios
can outperform the market.
The views expressed in this report are those of the Adviser through the end
of the period stated on the cover. The Adviser's views and opinions are based
on economic data, market conditions and other information and are subject to
change at any time.
THE ASSET ALLOCATION FUND
Performance and Investment Summary
Cumulative Total Return
Cumulative Total Returns show how the value of the
Fund's shares changed over a set period--in this case,
since the inception of the Fund on March 13, 1996--
and assume that you held the shares through the entire
period and reinvested all distributions into the Fund.
These Cumulative Total Return figures are compared to
the benchmark performance of the S&P 500--a widely
recognized, unmanaged index of common stocks. Please
note that indices do not take into account fees and
expenses of investing in the individual securities that
they track, and that individuals cannot invest directly
in any index.
Growth of $10,000 Investment
(Line graph comparing the growth of a
$10,000 investment in the Asset
Allocation Fund to the performance of
the S&P 500 during the period from 3/13/96
to 9/30/96)
Investment Summary
Top Ten Holdings as of September 30, 1996
Percent of Fund's Total Investments
Seven Seas Small-Cap Fund 8.5%
Munder Index 500 Fund Class A 7.8%
Peoples Index Fund, Inc. 7.7%
Fidelity Select Technology Portfolio 7.3%
Vanguard Index Trust 500 Portfolio 7.0%
Putnam New Opportunities Fund Class A 7.0%
Putnam OTC Emerging Growth Fund Cl. B 5.9%
Vanguard Index Total Stock Market 5.7%
Montgomery Small Cap Opportunity Fund 4.4%
Vanguard Specialized Real Estate Index 4.0%
Cumulative Total Returns
Period ended Since Fund Inception
September 30, 1996 March 13, 1996*
Asset Allocation Fund -0.64%
S&P 500 Index 7.64%
*Not Annualized
Performance
There are several ways to evaluate a fund's
historical performance: total percentage
change in value, the average annual
percentage change, or the growth of a
hypothetical $10,000 investment. A fund's
Total Return includes changes in share price,
plus reinvestment of any dividends (income)
and capital gains (the profits the fund earns
when it sells securities that have grown in
value).
Understanding Performance
How a fund performed in the past is no
guarantee of how it will perform in the future.
The stock market, for example, has a history
of growth in the long term and volatility in the
short term. The Fund's principal value and
investment returns fluctuate so that upon
redemption you may receive more or less than
your original investment.
Fund Information
Inception Date: March 13, 1996
Assets: $567,518 as of September 30, 1996
Manager: Timothy L. Ashburn
Investment Review
Q: Who should consider the Asset Allocation Fund?
A: The Asset Allocation Fund is suitable for conservative investors who seek
the best overall return consistent with prudent risk and preservation of
capital.
Q: What is unique about The Asset Allocation Fund?
A: One basic distinction is an investment strategy that combines investing
in a diversified portfolio of well known fund families such as Fidelity,
Vanguard and Putnam with an asset allocation model designed to diversify risk
and prudently maximize returns. The Fund has a flexible policy of investing
principally in other no-load index and sector mutual funds, including
domestic and international stocks, bond and sector funds, as well as money
market funds. Because the Fund invests in mutual funds with allocation
consideration given to asset classes, and utilizes index funds to generate
returns that more closely track the applicable markets, it is designed to be
somewhat less aggressive while seeking to achieve above-average market
performance.
Q: How did the Fund perform?
A: The Fund began to invest to meet its objectives on March 13, 1996. The
fund's performance for this period ended September 30, 1996 was -0.64%. For
the same period, the Standard and Poor's 500 Index returned 7.64%.
Q: What factors contributed to the Fund's below-market performance?
A: This summer's sudden market selloff has been the single most significant
factor. July's market correction directly impacted both the index funds and
many of the small, emerging growth companies that make up the some of the
portfolios of the various funds in the Asset Allocation Fund. Additionally,
the fund began investing to meet its objectives March 13, 1996 and, in its
initial month, incurred certain extraordinary expenses that are associated
with the Fund's startup contributing to the less than favorable comparison
with the Standard and Poor's 500 Index.
Q: Have these challenges caused you to change your investment strategy?
A: No. Our strategy is sound. We continue to pick the best mix of funds
based on our asset allocation model, that in our opinion will, over the long
haul, outperform the market and reduce exposure to risk. To the degree that
market circumstances change or become more or less volatile, we will adjust
our portfolio holdings between the various asset classes based on our risk
assessement of each individual fund and our expectation for each asset
class's performance at that time.
Q: What is the Fund's current strategy for the months ahead?
A: We believe that current economic conditions are favorable for continued
moderate growth, and expansion. Therefore we will continue to allocate over
multiple asset classes that favor growth oriented opportunities. We are also
convinced that enough uncertainty exists to cause a choppy, although modestly
upward trend in the markets for the short-term, and that some market
volatility exists in the short-term, especially for small cap, emerging
growth and technology sectors. We will continue to increase our allocation
of assets among those holdings that we believe offer the best and most
consistent returns. We believe over the long-term, despite day to day market
volatility, the allocation model in place has an excellent opportunity to
outperform the market.
The views expressed in this report are those of the Adviser through the end
of the period stated on the cover. The Adviser's views and opinions are
based on economic data, market conditions and other information and are subject
to change at any time.
THE TAXABLE AND TAX-FREE MONEY MARKET FUNDS
Performance and Investment Summary
Investment Review
Q: Why should investors consider investing in The Vintage Money Market
Funds? Given the performance of the stock market over the past twelve months,
do money market funds make sense?
A: Yes. A prudent wealth-building strategy includes placing the "cash"
portion of an investor's portfolio into liquid and very conservative
investments. Money market funds are an excellent and suitable investment
option for money which is awaiting near term utilization into more
aggressive, higher yielding investments, or, that you wish to keep readily
available to meet emergencies and/or unanticipated events.
Q: For the previous six-month period, how would you describe the economic
climate that affected the types of instruments in which money market mutual
funds invest?
A: Inflation remained subdued and, therefore, interest rates remained
relatively low for the period which provided a slow, non-inflationary growth
for our economy. We expect this trend to continue, especially if the Federal
Reserve in cooperation with the central banks of seven major industrial
nations, can continue to be successful in maintaining slow, non-inflationary
growth in their respective economies. In the near term, we believe that the
greatest influence on interest rates will continue to be the rate of
inflation. The Federal Reserve continues to indicate by its actions and
through its publications that when the economy slows to around a 1% annual
rate, the Fed will initiate stimulative action, and when the economy nears
a 4% annual rate, the Fed will implement restraints. The "soft landing"
engineered by the Fed is maintaining the economy's gradual, non-inflationary
growth with modest productivity gains. The long-term perspective anticipates
that the economy will continue to grow at a healthy, low-inflationary rate
in a 1-4% band for several years to come, provided that the existing Fed key
personnel and its present philosophy should continue. The "steady as she
goes" policy at the Fed should continue to provide support for this market
in the very near term, and would be an excellent foundation and fertile soil
for long-term investments in equity markets.
Q: How have you responded to these changing conditions?
A: First and foremost, we believe our investors place a high premium on
safety when selecting a money market fund. They want "peace of mind" while
riding out choppy markets. Given the oscillating economic factors that have
and will continue to affect the short-term interest rate environment, we have
diligently worked to select high quality, short-term investments that meet
our most conservative average maturity targets. This investment approach
will not produce the highest possible yields, but in this type of market we
prefer to favor the side of conservatism and safety in our ever changing
assessment of the short-term interest rate environment.
Q: How did the Funds perform during this period?
A: The Fund's seven day yield on September 30, 1996 was 4.13%. The Tax-Free
Money Market Fund's seven day yield on September 30, 1996 was 1.96%.
Q: How have we positioned the Funds for the future?
A: For some time now, our portfolio managers have been taking steps to
assure high-grade, low-risk portfolios for the two Vintage money market
funds. Our priorities are safety first, along with liquidity, and yield
second. Our money market funds remain committed to professional
responsiveness to the changing financial markets, ensuring that the Vintage
portfolios continue to seek the highest possible safety and returns
consistent with the fundamental objectives and investment policies of each
portfolio. In the meantime, as we all anxiously anticipate and monitor the
economy, your funds continue to provide high quality, conservative investments
with excellent service.
Performance
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects both the change in a fund's share
price over a given period, and reinvestment of its dividends (or income).
Yield measures the income paid by a fund. Since a money market fund tries to
maintain a $1 share price, yield is an important measure of performance.
Yield
Period ended 7 day 30 day
September 30, 1996 yield yield
Taxable Money Market Fund 4.13% 4.09%
Tax-Free Money Market Fund 1.96% 1.94%
Fund Information
Total Net Assets*:
Taxable Money Market: $50,544,511
Tax-Free Money Market: $ 7,334,110
Manager: Ralph E. Rosemelia
* as of September 30, 1996
THE FIDUCIARY VALUE FUND
THE TAXABLE FIXED INCOME FUND
THE MUNICIPAL FIXED INCOME FUND
Performance and Investment Summary
As of September 30, 1996, due to these Funds' relatively small asset levels,
these three Funds remained uninvested and could not therefore commence
operations in accordance with their respective investment objectives detailed
in the prospectus.
Until the Adviser and/or its affiliates have supplied sufficient assets to
commence investment operations, these three Funds will only be available for
investments by Vintage Advisers, Inc. and its affiliated companies and
personnel.
SHAREHOLDER CONSENTS
Effective April 17, 1996, a majority of the shareholders of each of the
Taxable Fixed Income Fund and the Municipal Fixed Income Fund authorized
changes to the investment policies and limitations of their respective Fund
to permit the Fund to invest principally in other mutual funds. On April 16,
1996, 3010.000 shares of the 3498.517 shares outstanding approved the above-
described change for the Taxable Fixed Income Fund, and 1640.051 shares of
the 2325.774 shares outstanding approved the above-described change for the
Municipal Fixed Income Fund.
<TABLE>
<CAPTION>
INVESTMENTS-STARWOOD STRATEGIC FUND
Statement of Net Assets September 30, 1996
Number Market
of Shares Value
<S> <C> <C>
Airlines - 1.20%
Southwest Airlines Company 264 $ 6,039
Aerospace/Defense - 5.12%
Boeing Company 135 12,758
United Technologies 100 12,013
Computer Software - 11.60%
Automatic Data System 300 13,088
Cadence Design System 400 14,300
Computer Associates 250 14,938
Electronic Data System 225 13,809
Conglomerates - 2.68%
Tyco International LTD 300 12,938
Consumer/Specialty Retail - 16.40%
Alco Standard Corp. 265 13,217
Amgen, Inc. 300 18,938
G & K Services, Inc. CL A 600 17,550
Kimberly Clark Corp. 190 16,744
Sealed Air Corp. 345 12,851
Data Telecommunication - 12.00%
Andrew Corporation 300 14,963
Frontier Insurance Group 360 14,355
Glenayre Technologies, Inc. 300 6,900
Raytheon Co. 190 10,568
Sterling Commerce, Inc. 375 11,063
Financial Services - 7.00%
American International Group 157 15,818
Travelers Group, Inc. 190 9,334
Wells Fargo & Co. 32 8,320
Drugs & Health Care -24.20%
Bergen Brunswig Corp. 560 17,780
Biomet, Inc. 800 13,100
Healthcare Compare Corp. 300 14,212
Johnson & Johnson 172 8,815
McKesson Corp. New 370 17,529
Merck & Co., Inc. 129 9,078
Rite Aid Corp. 400 14,500
Schering-Plough Corp. 129 7,934
Vivra, Inc. 425 13,866
Media - 5.80%
Grupo Televisa S.A. GDS ADR 403 11,637
Grupo Radio Centro ADR 2,000 16,500
Softdrink/Bottler - 4.20%
Coca-Cola FEMSA S.A. ADR 560 13,300
Pepsico, Inc. 252 7,119
Total Securities
(Cost $416,369) 435,870
Repurchase Agreements - 3.00%
Star Bank ($25,000 GNMA II GTD 8359, 1/20/24)
Purchase date 9/30/96, Maturity Date 10/1/96,
Amount Payable at Maturity $14,502,
Total Repurchase Agreements 14,500
(Cost $14,500)
Total Investments
(identified cost $430,869) 450,370
Other Assets and Liabilities Net - 6.80% 33,088
Net Assets - 100% $483,458
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS-THE AGGRESSIVE GROWTH FUND
Statement of Net Assets September 30, 1996
Number of Shares Market Value
<S> <C> <C>
Mutual Funds - 94.30%
Alger Capital Appreciation Fund 656 $ 14,503
Baron Asset Fund 1,175 41,716
Fidelity Capital Trust Stock Selector #320 456 11,108
Dreyfus Aggressive Growth Fund 2,457 55,881
Galaxy Small Company Equity Fund 1,594 32,710
Harbor Capital Appreciation Fund 223 5,712
IAI Emerging Growth Fund 1,782 44,512
Janus Mercury Fund 275 5,181
Kaufmann Fund 7,923 48,804
Navallier Aggressive Growth Portfolio 1,792 22,814
Neuberger & Berman Focus Fund 182 5,437
Oberweiss Emerging Growth Fund 259 9,063
PBHG Growth Fund 1,568 44,237
PBHG Emerging Growth Fund 1,275 33,593
Robertson Stephens Value Plus Growth Fund 221 5,323
SEI Small Capital Growth Fund A 701 14,376
Stein Roe Capital Opportunities Fund 1,298 40,290
T. Rowe Price Mid-Cap Growth Fund 486 11,652
T. Rowe Price New America Growth Fund 266 10,947
Tweedy, Browne Global Value Fund 1,376 20,289
USAA Aggressive Growth Fund 297 9,516
Van Wagoner Emerging Growth 642 9,140
Warburg Pincus Emerging Growth Fund 765 25,458
Wasatch Mid-Cap Fund 1,046 18,768
Total Mutual Funds
(Cost $539,889) 541,030
Repurchase Agreements - 3.60%
Star Bank
($25,000 GNMA II GTD 8359, 1/20/24)
Purchase Date 9/30/96, Maturity Date 10/1/96,
Amount Payable at Maturity $20,503
Total Repurchase Agreements
(Cost $20,500) 20,500
Total Investments
(Identified cost $560,389 561,530
Other Assets and Liabilities, Net - 2.10% 11,992
Net Assets - 100% $573,522
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS-THE ASSET ALLOCATION FUND
Statement of Net Assets September 30, 1996
Number of Shares Market Value
<S> <C> <C>
Mutual Funds - 92.50%
Fidelity Select Technology Portfolio 460 $ 24,875
Fontaine Capital Appreciation Fund 478 9,703
Fremont Micro-Cap Fund 698 8,997
INVESCO Technology Fund 302 10,613
Montgomery Small Cap Opportunity Fund 1,277 20,959
Munder Index 500 Fund Class A 4,157 68,833
Oberweiss Emerging Growth Portfolio 410 14,338
Oberweiss Micro-Cap Fund 867 11,883
Peoples Index Fund, Inc. 1,477 31,718
Perkins Opportunity Fund 405 7,364
Putnam New Opportunities Fund Class B 587 24,985
Putnam OTC Emerging Growth Fund Class B 1,447 24,232
Seven Seas Small-Cap Fund 3,979 72,736
Vanguard Index Trust 500 Portfolio 1,482 95,754
Vanguard Extended Market Portfolio 579 15,586
Vanguard Index Trust Total Stock Market Portfolio 1,239 20,800
Vanguard Small Capitalization Stock Portfolio 964 19,964
Vanguard Specialized Real Estate Index Fund 1,974 21,264
Vanguard Index Value Portfolio 1,254 20,063
Total Mutual Funds
(Cost $508,500) 524,666
Repurchase Agreements - 5.10%
Star Bank
($35,000 GNMA II GTD 8359, 1/20/24)
Purchase Date 9/30/96, Maturity Date 10/1/96,
Amount Payable at Maturity $29,004
Total Repurchase Agreements
(Cost $29,000) 29,000
Total Investments
(Identified cost $537,500) 553,666
Other Assets and Liabilities, Net - 2.40% 13,853
Net Assets - 100% $567,519
</TABLE>
INVESTMENTS-THE TAX-FREE MONEY MARKET FUND
Statement of Net Assets September 30, 1996
Par Value Value (Note 2)
Municipal Securities - 100.00%
Arizona- 0.35%
Scottsdale, Arizona CTFS, 7.75% 11/01/2001
Scottsdale Municipal PPTY Corp., FGIC, Pre
- -refunded 11/01/1996 @ 102.00 $ 25,000 $ 25,500
California-6.17%
Elk Grove, California Uni School, 5.25%
12/01/1996, Community Facilities Dist. No 1,
FGIC 50,000 50,101
California Health Facility Bond, 7.00%
05/01/1997 Childrens Hospital San Francisco
Series A, MBIA 25,000 25,229
San Bernardino, California Health Care, 6.50%
01/01/2007 Sisters Charity Incarnate Word,
Pre-refunded 01/01/1997 @ 102.00 55,000 56,478
California State Department Water Resources
Center, 7.50% 12/01/2015, Series B Pre-
refunded 12/01/1996 @ 101.50 35,000 35,737
California State Water Resources Development
Series C, 3.55% 11/01/1996 90,000 90,056
Sacramento, California Municipal Utilility,
7.125% 02/01/2013, Series R, FGIC O.I.D.
Pre-refunded 02/01/1997 @ 102.00 100,000 103,115
California State Health Facility, 7.125%
11/01/2005 Stanford University Series B,
Pre-refunded 11/01/1996 @ 102.00 40,000 40,898
Modesto, California Irr District CTFS,
7.125% 10/01/2005 86 Geysers Geothermal Power
Project, Series 86A, O.I.D. Pre-refunded
10/01/1996 @ 102.00 25,000 25,500
Palm Springs, California, 6.70% 11/01/1996,
Palm Springs Public Facilities Corp., FSA
O.I.D. 25,000 25,059
Colorado - 1.09%
Laplata County, Colorado School District,
6.00% 11/01/1996, FGIC 30,000 30,054
Colorado State CTFS Partnership, 6.60%
11/01/1996, FGIC 50,000 50,122
Connecticut -0.34%
North Haven, Connecticut, 6.80% 10/01/1996 25,000 25,000
D.C., Washington -0.68%
Washington, D.C. Metro Airport Authority,
6.80% 10/01/1996, Series A, BIGI 50,000 50,000
Florida-16.88%
Miami, Florida Sports Exposition, 4.70%
10/01/1996, Series B, FGIC 40,000 40,000
Pemboke Pines, Florida Public Revenue, 7.05%
10/01/2000, AMBAC Pre-refunded 10/01/1996
@ 102.00 50,000 51,000
Orlando, Florida Waste Water Systems, 7.50%
10/01/2014, Series B, AMBAC O.I.D. Pre-
refunded 10/01/1996 @ 102.00 50,000 51,000
Lakeland, Florida Electric & Water Revenue,
6.25% 10/01/2012 O.I.D. 100,000 100,000
Hillsboro County, Florida, 6.60% 10/01/1996
Tampa International Airport-Series A, AMBAC
ETM 55,000 55,000
Tampa, Florida Water & Sewer, 6.90%
10/01/1996, Series B, AMBAC 25,000 25,000
Lakeland, Florida Electric & Water Revenue,
6.25% 10/01/2012 25,000 25,500
Orlando, Florida Waste Water System, 7.50%
10/01/2014, Series B, AMBAC Pre-refunded
10/01/1996 @ 102.00 60,000 61,200
Orange County, Florida Sales Tax Revenue,
6.60% 01/01/1997, FGIC ETM 25,000 25,165
Volusia County, Florida Health, 4.20%
11/15/1996, AMBAC Hospital Facilities-
Memorial Health 50,000 50,016
Florida State Municipal Power Agency, 7.30%
10/01/2007 Pre-refunded 10/01/1996 @ 102.00 30,000 30,600
Tampa, Florida Sports Revenue, 5.85%
10/01/1996 40,000 40,000
Lakeland, Florida Electric & Water Revenue,
6.00% 10/01/2012 35,000 34,998
Jacksonville Beach, Florida Utilility Revenue,
7.40% 10/01/2006, AMBAC Pre-refunded
10/01/1996 @ 102.00 90,000 91,791
Orlando, Florida Waste Water System, 7.375%
10/01/2011 25,000 25,500
Lakeland, Florida Electric & Water, 6.00%
10/01/2012, Sub Lien, AMBAC O.I.D.
Pre-refunded 10/01/1996 @ 100.00 50,000 50,000
New Smyrna Beach, Florida Utilities, 7.00%
4/01/2007, AMBAC O.I.D. Pre-refunded
10/01/1996 @ 101.50 25,000 25,375
Dade County, Florida Special Obligation
Refunding, 6.70% 10/01/2003, MBIA O.I.D. Pre-
refunded 10/01/1996 @ 102.00 45,000 45,900
Lakeland, Florida Electric & Water, 6.00%
10/01/2012, Sub Lien-AMBAC O.I.D. Pre-
refunded 10/01/1996 @ 100.00 65,000 65,000
Dade County, Florida Special Obligation
Refunding, 6.40% 10/01/1998, MBIA O.I.D.
Pre-refunded 10/01/1996 @ 102.00 25,000 25,500
Florida State Municipal Power Agency, 5.85%
10/01/1996 All-Equipment Power Supply, FGIC 50,000 50,000
Brevard County, Florida Health Facilities,
7.625% 10/01/2007, MBIA Holmes Regional
Medical Center Project, Pre-refunded
10/01/1996 @102.00 60,000 61,200
Florida State Municipal Power Agency, 7.375%
10/01/2016, AMBAC O.I.D. St. Lucie Project,
Pre-refunded 10/01/1996 25,000 25,500
Dade County, Florida Special Obligation
Refunding, 6.70% 10/01/2003, MBIA O.I.D.
Pre-refunded 10/01/1996 @ 102.00 25,000 25,500
Jupiter, Florida Water Revenue Series B,
7.875% 12/01/2018, AMBAC Pre-refunded
10/01/1996 @ 102.00 100,000 102,000
Lee County, Florida Local Option Gas Tax
Revenue, 3.60% 10/01/1996, MBIA O.I.D. 30,000 30,000
Lakeland, Florida, 7.75% 10/01/2006 Sub Lien-
AMBAC O.I.D. Pre-refunded 10/01/1996 @ 100.00 25,000 25,000
Georgia -2.90%
Atlanta, Georgia Downtown Development
Authority Revenue, 7.75% 10/01/2016 Underground
Atlanta Project, Pre-refunded 10/01/1996
@102.00 75,000 76,500
Valdosta & Lowends County, Georgia Hospital
Authority Revenue, 7.25% 10/01/2002 South
Georgia Medical Center MBIA, Pre-refunded
10/01/1996 @ 102.00 20,000 20,400
Fulton County, Georgia Building Center
Authority Revenue, 4.40% 01/01/1997
Judicial Center Completion Project 50,000 50,061
Savannah, Georgia Water & Sewer, 7.90%
12/01/1996 25,000 25,167
Fulton/DeKalb County, Georgia Hospital
Revenue, 6.65% 01/01/1997 CTFS-Series B,
AMBAC ETM 40,000 40,254
Hawaii -.34%
Hawaii State Downtown Finance Revenue, 3.60%
11/01/1996 The Evangelical Lutheran, AMBAC 25,000 24,996
Illinois-5.59%
State of Illinois, 6.60% 01/01/1997 300,000 301,968
Chicago, Illinois Project & Refunding, 5.40%
1/1/1997 105,000 108,176
Indiana-.34%
Penn Harris School Indiana General Obligation,
6.45% 10/1/1996 25,000 25,000
Kentucky- 3.40%
Louisville, Kentucky New Public Housing, 5.00%
1/1/1997 250,000 249,626
Maryland- 2.40%
Maryland State Series III, 11.30% 11/15/1996 75,000 75,670
Montgomery County, Maryland Authority Lease
Revenue, 6.70% 10/01/1996 Western County
Swimming Facilities Utilities Commission
Revenue 100,000 99,992
Massachusetts-4.10%
Massachusetts State Housing Finance Agency
Housing Revenue, 4.90%, 01/01/97 Insured-
Rental, Series A, AMBAC 300,000 300,885
Michigan-5.90%
Grand Rapids, Michigan Building Authority,
8.50% 04/01/1997 40,000 41,135
Jackson County, Michigan, 6.30% 04/01/2000,
Pre-refunded 01/01/1997 @ 102.00 40,000 41,259
Michigan Municipal Bond Authority Revenue,
4.40% 11/01/1996 Local Government Loan Program
Series C, MBIA 350,000 350,242
North Carolina-2.82%
North Carolina State, 5.50% 12/01/1996 50,000 50,154
North Carolina Eastern Municipal Power Agency
Series A, 7.25% 01/01/2022, FGIC
Pre-refunded 01/01/1997 @ 102.00 20,000 20,569
North Carolina Eastern Municipal Power Agency
Series A, 7.50% 01/01/2015 Pre-refunded
01/01/1997 @ 102.00 50,000 51,429
North Carolina Municipal Power Agency Number 1,
4.00% 01/01/1997 Catawba Electric Revenue O.I.D. 50,000 49,975
Forsyth County, North Carolina Series A, 4.50%
03/01/1997 35,000 35,056
New Hampshire-0.34%
Souhegan, New Hampshire Coop School District,
6.50% 10/15/1996, MBIA 25,000 25,027
New Jersey-2.12%
Clifton, New Jersey, 6.80% 10/01/1996, AMBAC 30,000 30,000
Middelsex County, New Jersey Utilities
Authority, 5.30% 12/01/1996, FGIC 25,000 25,062
New Jersey State, 5.90% 01/15/1997, Series B 100,000 100,592
Nevada-1.39%
Nye County, Nevada School District, 7.00%
05/01/1997, BIGI 100,000 101,749
New York-15.08%
Nassau County, New York General Improvement
Series D, 6.75% 11/01/1996, FGIC ETM 25,000 25,058
Nassau County, New York General Improvement
Series J, 6.00% 11/15/1996, FGIC 50,000 50,127
Pittsford Perington Etc. New York Central
School, 5.20% 11/01/1996 25,000 25,035
Metropolitan Transportation Authority New
York Revenue, 4.25% 12/12/1996 Revenue
Anticipation Notes, Series A 250,000 250,315
Suffolk County, New York Series A, 4.00%
01/02/1997, Bond Anticipation Notes 350,000 350,210
Islip, New York Public Improvement DTD
03/01/1990 6.75% 03/01/1997, AMBAC 75,000 75,801
New York State Thruway Authority Emergency
Highway, 5.30% 03/01/1997 Construction &
Reconstruction Series A, FSA 200,000 201,209
Oyster Bay, New York Series A, 8.80%
03/01/1997, MBIA 125,000 128,318
Ohio-3.23%
Cleveland, Ohio Regional Sewer District Water
Reserve, 6.30% 10/01/1996, ETM 25,000 25,000
Lucas County, Ohio Hospital Revenue, 7.00%
10/01/2014 Toledo Hospital, MBIA O.I.D.,
Pre-refunded 10/01/1996 @ 102.00 85,000 86,700
Ohio State Public Facilities Community Higher
Education Series A, 8.10% 11/01/1996 50,000 50,179
Cuyahoga County, Ohio Hospital Revenue Series A,
7.10% 11/15/1996 Mt. Sinai Medical Center, ETM 25,000 25,089
Ohio State Public Facilities Higher Education
CAP Series II-A, 4.25% 12/01/1996, AMBAC 50,000 50,031
Oregon-2.05%
Portland, Oregon Water, 4.80% 10/01/1996 100,000 100,000
Salem, Oregon Water & Sewer Revenue, 4.00%
11/01/1996, AMBAC 50,000 50,008
Pennsylvania-9.39%
Philadelphia, Pennsylvania School District,
6.70% 11/01/1996, AMBAC ETM 50,000 50,114
Moon Area School District, Pennsylvania, 4.50%
11/15/1996 400,000 400,339
Pennsylvania State Turnpike Commission
Turnpike Revenue, 7.875% 12/01/2015 Series A,
O.I.D., Pre-refunded 12/01/1996 @ 102.00 70,000 71,889
Claysburg Kimmel, Pennsylvania School District,
7.02% 01/15/2014, MBIA Pre-refunded 01/15/1997
@ 100.00 40,000 40,384
Pittsburgh, Pennsylvania Series B, 6.75%
03/01/1997, FGIC 100,000 101,106
North Hampton County, Pennsylvania, 5.40%
10/15/1996 25,000 25,013
South Dakota-4.91%
Heartland, South Dakota Consumers Power Distict
Electric Revenue, 7.875% 01/01/2006 300,000 309,009
AMBAC, O.I.D., Pre-refunded 01/01/1997 @ 102.00
Heartland, South Dakota Consumers Power
District Electric Revenue, 7.625% 01/01/2016
MBIA, O.I.D., Pre-refunded 01/01/1997 @ 102.00 50,000 51,457
Tennesee-0.70%
Chattanooga/Hamilton County, Tennessee
Hospital Authority Revenue, 7.50% 10/01/2013
Elanger Medical Center, O.I.D., Pre-Refunded
10/01/1996 @ 102.00 50,000 51,000
Texas-3.75%
Dallas, Texas, 3.90% 02/15/1997, O.I.D. 100,000 100,034
Lower Colorado River Authority, Texas, 6.875%
01/01/2010, BIGI O.I.D. Pre-refunded
01/01/1997 @ 102.00 100,000 102,854
Lower Colorado River Authority, Texas, 7.00%
01/01/2009, MBIA O.I.D. Pre-refunded
01/01/1997 @ 102.00 70,000 71,950
Vermont-0.68%
Vermont State, 6.90% 10/01/1996 50,000 50,000
Virginia-1.40%
Fairfax County, Virginia Industrial Development,
Series A Authority Revenue, 7.875% 12/01/2017,
Pre-Refunded 10/01/1996 @ 103.00 100,000 103,000
Washington-6.58%
Seattle, Washington Municipal Light & Power,
6.70% 10/01/1998 Pre-refunded 10/01/1996
@ 102.00 50,000 51,000
Seattle, Washington Municipal Light & Power,
7.125% 10/01/2007, O.I.D Pre-refunded
10/01/1996 @ 102.00 50,000 51,000
Washington State Series R-93B, 3.85% 10/01/1996 40,000 40,000
Port of Tacoma, Washington Revenue Series A,
4.40% 11/01/1996, AMBAC 50,000 50,022
Seattle, Washington Municipal Light & Power,
3.85% 11/01/1996 100,000 100,002
Washington State Health Care Facility
Authority, 4.35% 11/01/1996, MBIA Empire
Health Services Spokane 65,000 65,008
Washington Suburban Sanitation District
Maryland, 5.60% 11/01/1996, Sewer Disposal 50,000 50,073
King County, Washington Water & Sewer Revenue,
6.65% 12/01/1996, Federal Way, FGIC 50,000 50,217
Clark County, Washington Public Utilities
District No. 001, 4.00% 01/01/97 Electrical
Revenue, O.I.D. ETM 25,000 25,000
West Virginia-0.82%
West Virginia State Water Development Authority
Revenue, 7.00% 11/01/2026 Pre-refunded
11/01/1996 @ 100.00 Series A, FSA O.I.D. 60,000 60,146
Total Municipal Securities
(Amortized cost $7,755,239) 7,755,239
Other Assets and Liabilities, Net -(5.74%) (421,129)
Net Assets - 100% $7,334,110
INVESTMENTS-THE TAXABLE MONEY MARKET FUND
Statement of Net Assets September 30,1996
Par Value Value (Note 2)
Commercial Paper - 41.12%
Coca Cola 5.2% 11/22/1996 $2,000,000 $1,984,978
Disney Walt Company 5.38% 1/06/1997 1,500,000 1,478,253
Disney Walt Company 5.35% 1/27/1997 1,000,000 982,464
Ford Motor Credit Corporation 5.45% 11/06/1996 1,000,000 994,550
Ford Motor Credit Corporation 5.38% 12/16/96 1,500,000 1,483,407
General Electric Capital Corp 5.40% 12/04/1996 1,000,000 990,649
General Electric Credit Corp 5.50% 12/16/1996 1,000,000 988,389
Glaxo Wellcome PLC 5.29% 11/15/1996 1,000,000 993,388
General Motors Credit Corp 5.45% 12/05/1996 1,000,000 990,413
General Motors Credit Corp 5.40% 12/16/1996 1,000,000 988,896
Hasbro Inc. 5.48% 11/05/1996 1,000,000 994,672
Hasbro Inc. 5.51% 12/20/1996 1,000,000 987,756
Lucent Technologies 5.45% 11/20/1996 2,000,000 1,984,861
Merrill Lynch 5.50% 11/27/1996 1,000,000 991,465
Merrill Lynch 5.48% 11/04/1996 1,000,000 994,824
Transamerica Financial 5.51% 01/06/1997 1,000,000 985,154
United Parcel Service 5.41% 12/31/1996 2,000,000 1,972,649
Total Commercial Paper $20,786,769
U.S. Government Securities - 48.80%
Federal Home Loan Bank DTD 10/04/1995
5.28% 10/04/1996 700,000 699,692
Federal Home Loan Bank DTD 1/10/1996
5.125% 1/10/1997 2,500,000 2,461,774
Federal Home Loan Bank DTD 1/15/1996
6.38% 1/15/1997 3,000,000 2,952,653
Federal Home Loan Bank DTD 1/16/1996
4.43% 1/16/1997 1,500,000 1,475,791
Federal Home Loan Bank DTD 1/28/1996
4.49% 1/28/1997 1,000,000 981,985
Federal Home Loan Bank DTD 1/23/1996
5.40% 1/23/1997 1,000,000 982,900
Federal Home Loan Bank DTD 1/23/1996
5.125% 1/23/1997 1,000,000 983,058
Federal Home Loan Bank DTD 1/16/1996
6.38% 1/16/1997 1,000,000 984,307
Federal Home Loan Bank DTD 1/27/1996
4.43% 1/27/1997 1,000,000 982,857
Federal Home Loan Bank DTD 1/28/1995
4.49% 1/28/1996 1,000,000 982,778
Federal Home Loan Mortgage
DTD 11/15/1995 4.49% 11/15/1996 3,000,000 2,980,538
Federal National Mortgage Association
DTD 10/15/1995 8.75% 10/15/1996 800,000 798,357
Federal National Mortgage Association
DTD 10/30/1995 8.75% 10/30/1996 1,500,000 1,493,596
Federal National Mortgage Association
DTD 1/21/1996 8.75% 1/21/1997 1,500,000 1,474,567
Federal National Mortgage Association
DTD 1/07/1996 8.75% 1/07/1997 1,000,000 985,300
Federal National Mortgage Association
DTD 2/03/1996 8.75% 2/03/1997 1,000,000 981,979
Federal National Mortgage Association
DTD 1/21/1996 8.75% 1/21/1997 1,500,000 1,475,313
Federal National Mortgage Association
DTD 12/27/1995 8.75% 12/27/1996 1,000,000 987,678
Total U.S. Government Securities 24,665,123
Repurchase Agreements -10.39%
Star Bank
($5,660,000 GNMA II GTD 8359 1/20/24)
Purchase Date 9/30/96, Maturity Date 10/1/96,
Amount payable at Maturity $5,250,773
Total Repurchase Agreements $5,250,000
(Cost $5,250,000)
Total Investments
(Amortized cost $50,701,892) 50,701,892
Other Assets and Liabilities,
Net - (.31%) (157,381)
Net Assets - 100% $50,544,511
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1996
<CAPTION>
Starwood Aggressive Fiduciary Asset
Strategic Growth Value Allocation
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
ASSETS
Investments, at value (Note 2) $450,370 $561,530 $ --- $553,666
Cash 22,547 164 119,854 937
Dividend receivable 2 --- --- 4
Interest receivable 523 3 --- 839
Receivable from adviser (Note 3) --- --- 29,765 ---
Receivable for shares sold --- --- --- ---
Deferred organization costs (Note 2) 3,116 3,116 3,116 3,116
Prepaid expenses 8,725 10,835 6,465 10,835
Total assets 485,283 575,648 159,200 569,397
LIABILITIES
Dividends payable --- --- --- ---
Payable for shares redeemed --- --- --- ---
Accrued expenses 1,825 2,126 2,582 1,878
Total liabilities 1,825 2,126 2,582 1,878
NET ASSETS $483,458 $573,522 $156,618 $567,519
Net assets consist of:
Paid-in capital 502,964 593,769 156,687 587,170
Undistributed net investment income (27,288) (23,917) (69) (25,231)
Net realized gain (loss) on investments (11,719) 2,530 --- (10,586)
Net unrealized appreciation in
value of investments 19,501 1,140 --- 16,166
Net assets $483,458 $573,522 $156,618 $567,519
Shares of capital stock
outstanding (no par value,
unlimited shares authorized) 62,838 58,493 79,825 61,238
Net asset value per share, offering
and redemption price $ 7.69 $ 9.80 $ 1.96 $ 9.27
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1996
<S> <C> <C> <C> <C>
Taxable Municipal Taxable Tax-Free
Fixed Fixed Money Money
Income Income Market Market
Fund Fund Fund Fund
ASSETS
Investments, at value (Note 2) $ --- $ --- $50,701,892 $7,755,239
Cash 1,886 1,773 121,122 50,086
Interest receivable --- --- 29,724 168,113
Receivable from adviser (Note 3) --- --- 21,070 8,092
Receivable for shares sold --- --- 243,117 17,307
Deferred organization costs (Note 2) 3,116 3,116 3,125 3,125
Prepaid expenses 5,872 5,872 13,624 9,939
Total assets 10,874 10,761 51,133,674 8,011,901
LIABILITIES
Dividends payable --- --- 156,179 11,293
Payable for investment purchsased --- --- --- 440,121
Payable for shares purchased --- --- 400,390 219,498
Accrued expenses 1,886 1,773 32,594 6,879
Total liabilities 1,886 1,773 589,163 677,791
NET ASSETS $ 8,988 $ 8,988 $50,544,511 $7,334,110
Net assets consist of:
Paid-in capital 35,596 35,638 50,544,511 7,334,335
Undistributed net investment income (26,608) (26,650) --- ---
Net realized gain (loss) on investments --- --- --- (225)
Net unrealized appreciation in
value of investments --- --- --- ---
Net assets $ 8,988 $ 8,988 $50,544,511 $7,334,110
Shares of capital stock
outstanding (no par value,
unlimited shares authorized) 3,903 7,927 50,544,511 7,334,335
Net asset value per share, offering
and redemption price $ 2.30 $ 1.13 $1.00 $1.00
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Year Ended September 30, 1996
<S> <C> <C> <C> <C>
Starwood Aggressive Fiduciary Asset
Strategic Growth Value Allocation
Fund Fund Fund Fund
INVESTMENT INCOME
Income:
Interest . $ 1,605 $ 2,190 $ 76 $ 851
Dividends 1,514 3,271 --- 3,307
Total net income 3,119 5,461 76 4,158
EXPENSES:
Investment adviser fees (Note 3) 1,496 2,446 140 2,485
Transfer agent fees (Note 3) 135 220 13 224
Fund accounting fees 135 220 13 224
Printing . 126 171 30 185
Administrative service fees 598 972 56 994
12b-1 fees (Note 3) 199 326 18 331
Auditing fees 1,611 1,611 2,611 1,611
Legal fees 1,293 1,297 1,274 1,297
Trustee's fees 3,021 3,043 3,985 3,047
Custodian fees 129 212 12 215
Registration and filing fees 19,281 17,149 18,556 17,146
Postage 107 159 43 150
Servicing fees 299 489 28 497
Amortization of organization expenses 853 853 853 853
Insurance 2,581 2,581 2,395 2,581
Other expenses 16 16 16 16
Total net expenses 31,879 31,767 30,043 31,856
Less: Expense reimbursement
from adviser (Note 3) (1,472) (2,389) (29,898) (2,466)
NET INVESTMENT INCOME (LOSS) (27,288) (23,917) (69) (25,231)
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments (11,719) 2,530 --- (10,586)
Change in net unrealized
appreciation of investments 19,501 1,140 --- 16,166
Net gain (loss) on investments 7,782 3,670 --- 5,580
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (19,506) $ (20,247) $ (69) $ (19,651)
<FN>
The accompaying notes are an integral part of these financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the year Ended September 30, 1996
<S> <C> <C> <C> <C>
Taxable Municipal Taxable Tax-Free
Fixed Fixed Money Money
Income Income Market Market
Fund Fund Fund Fund
INVESTMENT INCOME
Income:
Interest . $ 171 $ 22 $2,072,968 $221,402
Other income --- --- 369 ---
Total net income 171 22 2,073,337 221,402
EXPENSES:
Investment adviser fees (Note 3) 98 105 194,953 28,468
Transfer agent fees (Note 3) . 9 10 9,748 1,423
Fund accounting fees 9 10 9,748 1,423
Printing 4 2 15,084 2,360
Administrative service fees 41 45 52,637 7,686
12b-1 fees (Note 3) 14 15 38,991 5,694
Auditing fees 4,227 1,884 17,061 5,111
Legal fees 1,273 1,273 5,059 1,820
Trustee's fees 3,985 3,984 15,982 6,211
Custodian fees 9 10 23,870 3,498
Registration and filing fees 14,234 16,463 23,877 20,100
Postage 3 3 10,824 2,026
Servicing fees 20 22 58,486 8,540
Amortization of organization expenses 852 852 843 843
Insurance 2,083 2,083 1,552 1,552
Other expenses 16 16 3,839 6,339
Total expenses 26,877 26,777 482,554 103,094
Less: Expense reimbursement
from adviser (Note 3) (98) (105) (35,666) (11,385)
NET INVESTMENT INCOME (LOSS) (26,608) (26,650) 1,626,449 129,693
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments --- --- --- (225)
Change in net unrealized
appreciation of investments --- --- --- ---
Net gain (loss) on investments --- --- --- (225)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(26,608) $(26,650) $1,626,449 $129,468
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
<S> <C> <C> <C> <C>
Starwood Strategic Fund Aggressive Growth Fund
Year Period Year Period
Ended Ended Ended Ended
Sept 30, Sept 30, Sept 30, Sept 30,
1996 1995 1996 1995
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) $ (27,288) $ --- $ (23,917) $ ---
Net realized gain on investments (11,719) --- 2,530 ---
Change in net unrealized appreciation of investments 19,501 --- 1,140 ---
Net increase in net assets resulting from operations (19,506) --- (20,247) ---
Dividends and distributions to shareholders from:
Net investment Income --- --- --- ---
Net realized gain of investments --- --- --- ---
TOTAL INCREASE (DECREASE) (19,506) --- (20,247) ---
Capital share transactions:
Proceeds from shares sold 506,045 2,705 761,506 340
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
506,045 2,705 761,506 340
Cost of shares redeemed (5,786) --- (168,077) ---
Net increase in net assets resulting from
capital share transactions 500,259 2,705 593,429 340
TOTAL INCREASE IN NET ASSETS 480,753 2,705 573,182 340
NET ASSETS:
Beginning of period 2,705 --- 340 ---
End of period (including undistributed net
investment income/net investment loss) $ 483,458 $ 2,705 $ 573,522 $ 340
Shares of capital stock of the Fund sold and redeemed:
Shares sold 63,263 271 75,415 34
Shares issued to shareholders in reinvestment
dividends and distributions --- --- --- ---
63,263 271 75,415 34
Shares redeemed (696) --- (16,956) ---
NET INCREASE IN NUMBER OF
SHARES OUTSTANDING 62,567 271 58,459 34
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
<S> <C> <C> <C> <C>
Fiduciary Value Fund Asset Allocation Fund
Year Period Year Period
Ended Ended Ended Ended
Sept 30, Sept 30, Sept 30, Sept 30,
1996 1995 1996 1995
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) $ (69) $ --- $ (25,231) $ ---
Net realized gain on investments --- --- (10,586) ---
Change in net unrealized appreciation of investments --- --- 16,166 ---
Increase in net assets resulting from operations (69) --- (19,651) ---
Dividends and distributions to shareholders from
Net investment income --- --- --- ---
Net realized gain of investments --- --- --- ---
TOTAL INCREASE (DECREASE) (69) --- (19,651) ---
Capital share transactions:
Proceeds from shares sold 157,505 3,409 719,581 100
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
157,505 3,409 719,581 100
Cost of shares redeemed (4,227) --- (132,511) ---
Net increase in net assets resulting from
capital share transactions 153,278 3,409 587,070 100
TOTAL INCREASE IN NET ASSETS 153,209 3,409 567,419 100
NET ASSETS:
Beginning of period 3,409 --- 100 ---
End of period (including undistributed net
investment income/net investment loss) $ 156,618 $ 3,409 $ 567,519 $ 100
Shares of capital stock of the Fund sold and redeemed:
Shares sold 80,021 341 75,043 10
Shares issued to shareholders in reinvestment
dividends and distributions --- --- --- ---
80,021 341 75,043 10
Shares redeemed (537) --- (13,815) ---
NET INCREASE IN NUMBER OF
SHARES OUTSTANDING 79,484 341 61,228 10
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
<S> <C> <C> <C> <C>
Taxable Fixed Municipal Fixed
Income Fund Income Fund
Year Period Year Period
Ended Ended Ended Ended
Sept 30, Sept 30, Sept 30, Sept 30,
1996 1995 1996 1995
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) $ (26,608) $ --- $ (26,650) $ ---
Net realized gain on investments --- --- --- ---
Change in net unrealized appreciation of investments --- --- --- ---
Increase in net assets resulting from operations (26,608) --- (26,650) ---
Dividends and distributions to shareholders from
Net investment income --- --- --- ---
Net realized gain of investments --- --- --- ---
TOTAL INCREASE (DECREASE) (26,608) --- (26,650) ---
Capital share transactions:
Proceeds from shares sold 43,317 100 82,312 100
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
43,317 100 82,312 100
Cost of shares redeemed (7,821) --- (46,774) ---
Net increase in net assets resulting from
capital share transactions 35,496 --- 35,538 100
TOTAL INCREASE IN NET ASSETS 8,888 100 8,888 100
NET ASSETS:
Beginning of period 100 --- 100 ---
End of period (including undistributed net
investment income/net investment loss $ 8,988 $ 100 $ 8,988 $ 100
Shares of capital stock of the Fund sold and redeemed:
Shares sold 5,117 10 13,427 10
Shares issued to shareholders in reinvestment
dividends and distributions --- --- --- ---
5,117 10 13,427 10
Shares redeemed (1,224) --- (5,510) ---
NET INCREASE IN NUMBER OF
SHARES OUTSTANDING 3,893 10 7,917 10
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
<S> <C> <C> <C> <C>
Taxable Money Tax-Free Money
Market Fund Market Fund
Year Period Year Period
Ended Ended Ended Ended
Sept 30, Sept 30, Sept 30, Sept 30,
1996 1995 1996 1995
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) $ 1,626,449 $ 2,030 $ 129,693 $ ---
Net realized gain on investments --- --- (225) ---
Change in net unrealized appreciation of investments --- --- --- ---
Increase in net assets resulting from operations 1,626,449 2,030 129,468 ---
Dividends and distributions to shareholders from
Net investment income (1,626,449) (2,030) (129,693) ---
Net realized gain of investments --- --- --- ---
TOTAL INCREASE (DECREASE) --- --- (225) ---
Capital share transactions:
Proceeds from shares sold 159,908,254 1,490,696 19,344,229 100
Value of shares issued to shareholders in
reinvestment of dividends and distributions 1,471,593 876 118,174 ---
161,379,847 1,491,572 19,462,403 100
Cost of shares redeemed (112,065,721) (261,187) (12,128,168) ---
Net increase in net assets
resulting from capital share transactions 49,314,126 1,230,385 7,334,235 100
TOTAL INCREASE IN NET ASSETS 49,314,126 1,230,385 7,334,010 100
NET ASSETS:
Beginning of period 1,230,385 --- 100 ---
End of period (including undistributed net
investment income/net investment loss) $ 50,544,511 $1,230,385 $ 7,334,110 $ 100
Shares of capital stock of the Fund sold and redeemed:
Shares sold 159,908,254 1,490,696 19,344,229 100
Shares issued to shareholders in reinvestment
dividends and distributions 1,471,593 876 118,174 ---
161,379,847 1,491,572 19,462,403 100
Shares redeemed (112,065,721) (261,187) (12,128,168) ---
NET INCREASE IN NUMBER OF
SHARES OUTSTANDING 49,314,126 1,230,385 7,334,235 100
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<S> <C> <C> <C> <C> <C> <C>
Starwood Starwood Aggressive Aggressive Fiduciary Fiduciary
Strategic Strategic Growth Growth Value Value
Fund Fund Fund Fund Fund Fund
1996(a) 1995(b) 1996(a) 1995(b) 1996(a) 1995(b)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Income from investment
Operations:
Net investment income (3.23) 0.00 (0.24) 0.00 (8.04) 0.00
Net realized and unrealized
gain (loss) on investments 0.92 0.00 0.04 0.00 0.00 0.00
Total from investment income (2.31) 0.00 (0.20) 0.00 (8.04) 0.00
Less distributions:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00
Total from distributions 0.00 0.00 0.00 0.00 0.00 0.00
Net asset value at end of period $ 7.69 $10.00 $ 9.80 $10.00 $ 1.96 $10.00
TOTAL ANNUALIZED
RETURN (%)(e) (3.97)(f) (c) (2.72)(d) (c) (c) (c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 483,458 2,705 573,522 340 156,618 3,409
Ratio of expenses to
average net assets 15.99% 0.00% 9.74% 0.00% 160.78% 0.00%
Ratio of expenses (after
reimbursement) to
average net assets 15.25% 0.00% 9.01% 0.00% 0.78% 0.00%
Ratio of net investment
Income to average net assets (14.42%) 0.00% (8.07%) 0.00% (160.37%) 0.00%
Ratio of net investment
income (after reimbursement)
to average net assets (13.68%) 0.00% (7.33%) 0.00% (0.37%) 0.00%
Portfolio turnover 169.83% 0.00% 51.44% 0.00% 0.00% 0.00%
Average commission rate paid $ 0.06 $ --- $ 0.00 $ ---- $0.00 $ ---
<FN>
(a) For the Year-Ended September 30, 1996.
(b) For the Period June 2, 1995 (commencement of operations) to September 30,
1995.
(c) Investment in accordance with objective had not commenced at this time.
(d) For the period March 13, 1996 (commencement of investment in accordance
with objective) to September 30, 1996.
(e) Total return would have been lower had certain expenses not been reduced
during the periods shown (see Note 3).
(f) For the period April 4, 1996 (commencement of investment in accordance
with objective) to September 30, 1996.
</FN>
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<S> <C> <C> <C> <C> <C> <C>
Taxable Taxable Municipal Municipal
Asset Asset Fixed Fixed Fixed Fixed
Allocation Allocation Income Income Income Income
Fund Fund Fund Fund Fund Fund
1996(a) 1995(b) 1996(a) 1995(b) 1996(a) 1995(b)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Income from investment
Operations:
Net investment income (0.93) 0.00 (7.70) 0.00 (8.87) 0.00
Net realized and unrealized
gain (loss) on investments 0.20 0.00 0.00 0.00 0.00 0.00
Total from investment income (0.73) 0.00 2.30 0.00 1.13 0.00
Less distributions:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00
Total from distributions 0.00 0.00 0.00 0.00 0.00 0.00
Net asset value at end of period $ 9.27 $10.00 $ 2.30 $10.00 $ 1.13 $10.00
TOTAL ANNUALIZED
RETURN (%)(e) (1.16)(d) (c) (c) (c) (c) (c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 567,519 100 8,988 100 8,988 100
Ratio of expenses to
average net assets 9.61% 0.00% 197.93% 0.00% 181.72% 0.00%
Ratio of expenses (after
reimbursement) to
average net assets 8.87% 0.00% 197.21% 0.00% 181.01% 0.00%
Ratio of net investment
Income to average net assets (8.36%) 0.00% (196.67%) 0.00% (181.58%) 0.00%
Ratio of net investment
income (after reimbursement)
to average net assets (7.61%) 0.00% (195.96%) 0.00% (180.86%) 0.00%
Portfolio turnover 123.14% 0.00% 0.00% 0.00% 0.00% 0.00%
Average commission rate paid $ 0.00 $ --- $ 0.00 $ --- $ 0.00 $ ---
<FN>
(a) For the Year-Ended September 30, 1996.
(b) For the Period June 2, 1995 (commencement of operations) to September
30, 1995.
(c) Investment in accordance with objective had not commenced at this time.
(d) For the period March 13, 1996 (commencement of investment in accordance
with objective) to September 30, 1996.
(e) Total return would have been lower had certain expenses not been reduced
during the periods shown (see Note 3).
</FN>
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from the
financial statements.
<S> <C> <C> <C> <C>
Taxable Taxable Tax-Free Tax-Free
Money Money Money Money
Market Market Market Market
Fund Fund Fund Fund
1996(a) 1995(b) 1996(a) 1995(b)
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment
Operations:
Net investment income 0.04 0.002 0.02 0.00
Net realized and unrealized
gain (loss) on investments 0.00 0.000 0.00 0.00
Total from investment income 0.04 0.002 0.02 0.00
Less distributions:
Dividends from net investment income (0.04) (0.002) (0.02) 0.00
Total from distributions (0.04) (0.002) (0.02) 0.00
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL ANNUALIZED RETURN (%)(e) 4.13 0.20 1.96 (c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 50,544,511 1,230,385 7,334,110 100
Ratio of expenses to average net assets 1.25% 12.82% 1.82% 0.00%
Ratio of expenses (after reimbursement)
to average net assets 1.16% 0.47% 1.62% 0.00%
Ratio of net investment
income to average net assets 4.12% (11.94%) 2.09% 0.00%
Ratio of net investment
income (after reimbursement)
to average net assets 4.21% 0.65% 2.29% 0.00%
Portfolio turnover 0.00% 0.00% 0.00% 0.00%
Average commission rate paid $ 0.00 $ --- $0.00 $ ---
<FN>
(a) For the Year-Ended September 30, 1996.
(b) For the Period June 2, 1995 (commencement of operations) to September 30,
1995.
(c) Investment in accordance with objective had not commenced at this time.
(d) For the Period March 13, 1996 (commencement of investment in accordance
with objective) to September 30, 1996.
(e) Total return would have been lower had certain expenses not been reduced
during the periods shown (see Note 3).
</FN>
</TABLE>
NOTES TO FINANCIAL STATEMENTS
Note 1 - General
The Vintage Funds (the "Trust") was organized as an Indiana business trust on
February 1, 1995 and became registered under the Investment Company Act of
1940, as amended, as an open-end management investment company, effective
June 2, 1995. The Trust is a Series composed of eight no-load funds (the
"Portfolios") including The Starwood Strategic Fund, The Aggressive Growth
Fund, The Fiduciary Value Fund, The Asset Allocation Fund, The Taxable Fixed
Income Fund, The Municipal Fixed Income Fund, The Taxable Money Market Fund
and The Tax-Free Money Market Fund.
Note 2 - Significant Accounting Policies
The following is a summary of the significant accounting policies followed
by the Trust in the preparation of its financial statements.
A) Security Valuations
Investments in The Taxable Money Market Fund and The Tax-Free Money Market
Fund are stated at amortized cost, which approximates market value. Portfolio
securities are valued using the current market valuations: either the last
reported sales price, or in the case of securities for which there is no
reported last sale, the mean of the closing bid and asked prices. Bid price
is used when no ask price is available. Discounts and premiums on securities
purchased are amortized over the life of the respective securities.
B) Securities Transactions
Securities transactions are recorded on a trade date-plus-one basis. Realized
gains and losses from securities transactions are recorded on the identified
cost basis.
C) Dividends and Distributions to Shareholders
Dividends, if any, from net investment income for The Starwood Strategic Fund,
The Aggressive Growth Fund, The Fiduciary Value Fund and The Asset Allocation
Fund are paid quarterly.
Dividends, if any, from net investment income for The Taxable Fixed Income
Fund and The Municipal Fixed Income Fund are paid monthly.
Dividends, if any, from net investment income for The Taxable and The Tax-
Free Money Market Funds are paid on a daily basis.
Net realized long term capital gains, are paid at least annually. However,
to the extent that net realized gains of the Portfolios can be reduced by any
capital loss carry-overs from the Portfolio, such gains will not be
distributed. Dividend distributions are recorded on the ex-dividend date.
D) Federal Income Taxes
It is the policy of each Portfolio to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income to its shareholders. However, for the taxable year
ended September 30, 1996, The Starwood Strategic Fund, The Fiduciary Value
Fund, The Asset Allocation Fund, The Taxable Fixed Income Fund and The
Municipal Fixed Income Fund did not qualify to be taxed as regulated
investment companies for federal income tax purposes. The Portfolios stated
above intend to qualify as regulated investment companies in subsequent years.
E) Expenses
Direct expenses of each Portfolio are charged to the applicable Portfolio.
Indirect or general expenses of the Portfolios are allocated to the Portfolios
either on the basis of their relative net assets, special needs of each
Portfolio, or as is deemed appropriate.
Organizational costs and initial registration fees represent costs incurred in
connection with the organization, registration and the initial public offering
of the shares of the Trust and its Portfolios. Organizational costs and
initial registration fees are deferred and will be amortized on a straight-
line basis over five years. In the event that the original shareholders (or
any subsequent transferee) redeems any of its original capital (see capital)
prior to these organizational costs and initial registration fees being fully
amortized, the redemption proceeds will be reduced by a pro-rate portion of
any then unamortized organizational costs and initial registration fees.
Organizational costs and initial registration fees incurred were allocated
accordingly to each of the eight portfolios prior to the commencement of
operations. At September 30, 1996, the unamortized balance in each
portfolio were as follows:
<TABLE>
<CAPTION>
Portfolio Unamortized Balance Portfolio Unamortized Balance
<S> <C> <c? <C>
Starwood Strategic $3,116.00 Aggressive Growth 3,116.00
Fiduciary Value 3,116.00 Asset Allocation 3,116.00
Taxable Fixed Income 3,116.00 Municipal Fixed Income 3,116.00
Taxable Money Market 3,125.00 Tax-Free Money Market 3,125.00
</TABLE>
F) Estimates
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
G) Repurchase Agreement
Under the terms of a typical repurchase agreement, a Portfolio writes a
financial contract with a counterparty and takes possession of a government
debt obligation as collateral. The Portfolio also agrees with the counter-
party to allow the counterparty to repurchase the financial contract at a
specific date and price, thereby determining the yield during the Portfolios's
holding period. This arrangement will result in a fixed-rate of return not
subject to the market's fluctuation during the holding period indicated in
the contract. The value of the collateral is at least equal to the total
amount of the repurchase obligation, including interest. In the event of a
default by the counterparty, a Portfolio has the right to use the collateral
to offset any losses incurred.
H) Investments
Interest income is recorded on the accrual basis and dividend income is
recorded on the ex-dividend date.
Note 3 - Agreements and Other Transactions with Affiliates
The Trust has entered into an Investment Advisory Agreement with Vintage
Advisers, Inc. (the "Adviser"). In turn, the Adviser has entered into an
Investment Sub-Advisory Agreement with Starwood and Fiduciary Counsel. The
Trust has entered into an Administration Agreement with Unified Advisers, Inc.
("Unified") and a Distribution Agreement with Unified Management Corporation
(the "Distributor").
As Investment Adviser, the Adviser supervises and assists in the management of
the Trust, pursuant to the terms of the Investment Advisory Agreement.
The Adviser provides investment advisory services for which each Portfolio pays
on a monthly basis, an annual fee as follows:
<TABLE>
<CAPTION>
% of Average Net % of Average Net
Portfolio Assets of the Portfolio Portfolio Assets of the Portfolio
<S> <C> <C> <C>
Starwood Strategic .75% Aggressive Growth .75%
Fiduciary Value .75% Asset Allocation .75%
Taxable Fixed Income .50% Municipal Fixed Income .50%
Taxable Money Market .50% Tax-Free Money Market .50%
</TABLE>
The Adviser has engaged Starwood Corporation to serve as sub-adviser to The
Starwood Strategic Fund, and Fiduciary Counsel, Inc. to serve as sub-adviser
to The Fiduciary Value Fund, The Taxable Fixed Income Fund, The Municipal
Fixed Income Fund, The Taxable Money Market Fund, and The Tax-Free Money
Market Fund. Each sub-adviser receives annual investment management fees,
which are not paid directly by the Portfolios. The Adviser has waived its
management fees 100% for the twelve months ended September 30, 1996 for the
following Portfolios: The Starwood Strategic Fund, The Aggressive Growth
Fund, The Fiduciary Value Fund, The Asset Allocation Fund, The Taxable Fixed
Income Fund, and The Municipal Fixed Income Fund. Even though the Adviser
has no current intention to abandon this voluntary arrangement, the Adviser
may terminate the arrangement at any time at its sole discretion.
As Sub-Adviser, Fiduciary Counsel is entitled to an annual fee, paid by the
Adviser, for its services in managing The Fiduciary Value Fund, The Taxable
Fixed Income Fund, The Municipal Fixed Income Fund, The Taxable Money Market
Fund and The Tax-Free Money Market Fund. The fees are payable monthly, at
the following rates for each Portfolio respectively:
<TABLE>
<CAPTION>
Name of Fund Fee (Percentage of Assets of Portfolio)
<S> <C>
The Fiduciary Value Fund 0.35% of net assets up to $250 million;
0.30% of next $250 million of net assets;
0.25% of net assets in excess of $500 million
The Taxable Fixed Income Fund 0.30% of net assets up to $500 million;
0.25% of net assets in excess of $500 million
The Municipal Fixed Income Fund 0.30% of net assets up to $500 million;
0.25% of net assets in excess of $500 million
The Taxable Money Market Fund 0.07% of net assets up to $1 billion;
0.05% of net assets in escess of $1 billion
The Tax-Free Money Market Fund 0.07% of net assets up to $1 billion;
0.05% of net assets in excess of $1 billion
</TABLE>
Unified, as administrator, receives an annual fee, payable monthly by each
Portfolio. The fee is equal to 0.435% of the Portfolio's average net assets
for all the Portfolios, except The Taxable Money Market Fund and The Tax-Free
Money Market Fund for which the fee is equal to 0.185% of the Portfolio's
average net assets.
Under a Distribution Plan adopted with respect to each Portfolio pursuant to
Rule 12b-1 under the Investment Company Act of 1940, the Trust pays the
Distributor an annual fee, payable monthly, of up to 0.10% of the respective
Portfolio's average daily net assets.
The Trust has adopted a Shareholder Services Plan (with respect to each
Portfolio) in which financial institutions may enter into shareholder
services agreement with the Trust to provide administrative support services
to the Portfolios. In return for these services, a financial institution
may receive payments from each Portfolio at a rate not exceeding 0.15% of the
Portfolio's average net assets owned beneficially by the Institution's
clients.
The receivable from the Adviser for The Fiduciary Value Fund is composed of
$29,765 of expenses that the Adviser reimbursed subsequent to September 30,
1996. The receivable from the Adviser for The Taxable Money Market and Tax-
Free Money Market Funds is composed of $21,070 and $8,092 respectively of
management fees reimbursed subsequent to September 30, 1996.
The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940.
Certain Trustees and officers of the Trust are "affiliated persons" (as
defined in the Act) of the Vintage Funds. Each "non-affiliated" Trustee is
entitled to receive a quarterly Board of Trustees meeting fee of $2,400 and
$400 per additional meeting attended, plus expenses for services relating to
the Trust.
Note 4- Securities Transactions
For the year-ended September 30, 1996, purchases and sales of investment
securities, excluding short-term investments were as follows:
Purchases Sales
The Starwood Strategic Fund $ 678,428 $ 262,059
The Aggressive Growth Fund 677,465 137,576
The Asset Allocation Fund 886,750 378,250
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
The Vintage Funds
We have audited the statements of assets and liabilities including the
portfolios of investments, of The Vintage Funds (comprising, respectively, of
the Starwood Strategic Fund, the Aggressive Growth Fund, the Fiduciary Value
Fund, the Asset Allocation Fund, the Taxable Fixed Income Fund, the Municipal
Fixed Income Fund, the Taxable Money Market Fund, and the Tax-Free Money
Market Fund) as of September 30, 1996, and the related statements of
operations, the statements of changes in net assets, and the financial
highlights for each of the periods indicated. These financial statements and
financial highlights are the responsibility of the 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 September 30, 1996, by correspondence with the
custodian and brokers. An audit also includes 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 Vintage Funds as of
September 30, 1996, the results of their operations, the changes in their net
assets, and the financial highlights for the periods indicated in conformity
with generally accepted accounting principles.
/S/ McCurdy & Associates CPA's Inc.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
October 16, 1996
