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.sm (Vision for
Ongoing Investment in Charity and Education)sm Program.
The past six months have been quite a ride. During this market segment we have
seen much volatility and one of the more significant rallies in stock market
history. For the six-month period beginning September 1, 1996 and ending
February 28, 1997, the Dow Jones Industrial Average and the Standard & Poor's
500 Index surged ahead 23.64% and 22.52%, respectively. However, for the six
months beginning October 1, 1996 ended March 31, 1997, the Dow Jones Industrial
Average and the Standard & Poor's 500 Index gained 13.02% and 11.24%,
respectively, illustrating a substantial degree of variance stemming from the
market's uncertainty and sensitivity to the current economic climate.
In previous reports during the past year, we cautioned our shareholders that the
financial markets were heading into "choppy waters" and that investors should
prepare for occasional rough spots by maintaining a balanced portfolio of stock
funds, bond funds and money market funds. Although the economy continues to grow
at a controlled rate in what is evolving to be a historically extensive period
of economic expansion, we expect continued turbulence ahead and believe that our
earlier expressed caution remains valid today.
In regards to expanding the investment options available to you in your Vintage
Fund portfolio, this has been a gratifying period for The Vintage Funds. In
December, we completed the merger of The Laidlaw Covenant Fund into The
Fiduciary Value Fund and renamed the new portfolio, The Laidlaw Fund.
Additionally, in February of this year, we converted The Municipal Fixed Income
Fund to The First Lexington Balanced Fund.
The Laidlaw Fund invests principally in a diversified portfolio of common
stocks, preferred stocks and securities convertible into common stocks of
"socially conscious" companies. Mr. Jack R. Orben, Chairman of Fiduciary
Counsel, Inc., manages The Laidlaw Fund. Formed in 1931, Fiduciary Counsel, Inc.
is the subadviser to The Laidlaw Fund. Mr. Orben, a 1960 graduate of Tufts
University, has been the Chairman of Fiduciary Counsel, Inc. since 1979, and has
nearly 25 years of investment experience. To assist in the selection of socially
conscious securities, Laidlaw Holdings Asset Management, Inc. has entered into
an agreement to provide Fiduciary Counsel, Inc. with a recommended list of
socially conscious companies, investment in which would be consistent with the
socially responsible investment policy of The Laidlaw Fund.
The First Lexington Balanced Fund invests principally in a diversified portfolio
of other no-load mutual funds selected from six major financial asset classes.
The First Lexington Balanced Fund is managed by Dr. Gregory W. Kasten, President
of Health Financial, Inc. Founded in 1984, Health Financial, Inc. is the
subadviser to The First Lexington Balanced Fund. Dr. Kasten has been the
President of Health Financial, Inc. since 1986. Dr. Kasten is a Certified
Financial Planner and received his MBA in finance from the University of
Kentucky in 1990.
We are very proud of our relationships with Fiduciary Counsel, Inc. and Health
Financial, Inc. and look forward to offering you their extensive investment
experience within The Vintage Funds.
We are also very proud of our innovative program, V.O.I.C.E.sm (Vision for
Ongoing Investment in Charity 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
that 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, their 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 not-for-profit of your choosing.
Thanks to your support of V.O.I.C.E.sm, over 60 universities 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
<PAGE>
<TABLE>
INVESTMENTS-STARWOOD STRATEGIC FUND
- -----------------------------------
Statement of Net Assets March 31, 1997 (Unaudited)
<CAPTION>
Number Market
of Shares Value
<S> <C> <C>
Common Stocks - 85.01%
- ----------------------
Aerospace/Defense - 6.81%
Allied Signal, Inc. 400 $28,500
United Technologies 200 15,050
Airlines - 0.91%
Southwest Airlines Company 264 5,841
Conglomerates - 2.58%
Tyco International LTD 300 16,500
Consumer/Specialty Retail - 20.08%
CVS Corp. Com 640 29,520
G & K Services, Inc. CL A 600 18,000
Procter & Gamble Company 250 28,750
Sealed Air Corp. 595 24,469
Sears Roebuck & Company 550 27,638
Data Telecommunication - 1.34%
Raytheon Company 190 8,574
Drugs & Health Care - 8.62%
Johnson & Johnson 172 9,095
McKesson Corp. New 370 23,680
Merck & Company, Inc. 129 10,868
Vivra, Inc 425 11,475
Financial Services -4.31%
American International Group 157 18,428
Wells Fargo & Company 32 9,092
Food & Beverage - 4.62%
McDonald's Corp. 625 29,531
Insurance - 12.55%
American Annuity Group 1,675 26,172
Equitable of Iowa Company 550 27,500
Frontier Insurance Group 610 26,535
Media - 4.63%
Tribune Company 730 29,565
Oil & Natural Gas - 18.56%
Chevron Corp. 420 29,242
Exxon Corp. 285 30,709
Royal Dutch Pete NY Registry 170 29,750
Schlumberger LTD Com 270 28,957
------
Total Common Stocks
(Cost $518,381) 543,441
-------
Repurchase Agreements - 12.90%
- ------------------------------
Star Bank ($405,000 GNMA II GTD 8359, 01/20/24) Purchase date 03/31/97,
Maturity Date 04/01/97 Amount Payable at Maturity $82,511
(Cost $82,500) 82,500
Total Investments
(Identified cost $600,881) 625,941
Other Assets and Liabilities, Net - 2.09% 13,355
- ----------------------------------------- --------
Net Assets - 100% $639,296
</TABLE>
========
<PAGE>
<TABLE>
INVESTMENTS-THE AGGRESSIVE GROWTH FUND
- --------------------------------------
Statement of Net Assets March 31, 1997 (Unaudited)
<CAPTION>
<S> <C> <C>
Mutual Funds - 98.11% Number of Shares Market Value
- --------------------- ---------------- ------------
Alger Capital Appreciation Fund .......... 660 $13,649
Baron Asset Fund ......................... 1,175 41,105
Fidelity Capital Trust Stock Selector #320 456 10,940
Galaxy Small Company Equity Fund ......... 1,594 24,867
Harbor Capital Appreciation Fund ......... 223 5,795
Invesco Technology Fund .................. 685 19,715
Janus Mercury Fund ....................... 1,109 17,252
Kaufmann Fund ............................ 7,923 41,753
Navallier Aggressive Growth Portfolio .... 1,792 19,122
Neuberger & Berman Focus Fund ............ 182 5,648
PBHG Emerging Growth Fund ................ 1,275 24,563
PBHG Growth Fund ......................... 1,568 33,013
Robertson Stephens Value Plus Growth Fund 819 19,326
T. Rowe Price Mid-Cap Growth Fund ........ 486 11,089
T. Rowe Price New America Growth Fund .... 266 9,672
Tweedy Browne Global Value Fund .......... 1,483 22,930
Warburg Pincus Emerging Growth Fund ...... 765 23,721
Wasatch Mid-Cap Fund ..................... 1,046 16,665
-------
Total Mutual Funds
(Cost $402,166) 360,825
-------
Total Investments
(Identified cost $402,166) 360,825
Other Assets and Liabilities, Net - 1.89% 6,939
- ----------------------------------------- --------
Net Assets - 100% $367,764
========
</TABLE>
<PAGE>
<TABLE>
INVESTMENTS-LAIDLAW FUND
- ------------------------
Statement of Net Assets March 31, 1997 (Unaudited)
<CAPTION>
Number Market
of Shares Value
--------- -----
<S> <C> <C>
Common Stocks - 96.14%
- ----------------------
Banks - 8.41%
Banc One Corp 2,750 $ 109,312
Bank of New York 4,000 147,000
Chemicals - 5.56%
Air Products & Chemicals, Inc. 2,500 169,687
Computer Systems - 5.85%
Computer Sciences Corp. ............ 1,000 61,750
Hewlett-Packard Company ............ 1,000 53,250
Sun Microsystems ................... 2,200 63,525
Data Telecommunication - 4.49%
Lucent Technologies ................ 1,000 52,750
SBC Communications ................. 1,600 84,200
Delivery Services - 3.42%
Federal Express .................... 2,000 104,250
Drugs & Health Care - 5.19%
Bergen Brunswig Corp. Class A ...... 2,205 65,599
Merck & Company, Inc. .............. 1,100 92,675
Electric Equipment - 2.42%
Cooper Industries, Inc. ............ 1,700 73,737
Electric - 3.20%
Hubbel, Inc. Class B ............... 2,310 97,598
Food & Beverage - 4.60%
CPC International .................. 700 57,400
H. J. Heinz Company ................ 2,100 82,950
Household Products - 5.88%
Clorox Company ..................... 1,000 112,125
Rubbermaid, Inc. ................... 2,700 67,163
Information Systems - 2.62%
Knight-Ridder ...................... 2,000 79,750
Insurance - 5.58%
Allstate Corp. ..................... 1,390 82,531
Cigna Corp. ........................ 600 87,675
Investment Companies - 2.02%
A. G. Edwards, Inc. 2,000 61,500
Office Products - 8.55%
Avery Dennison Corp. ............... 3,000 $ 115,500
Bemis Company, Inc. ................ 1,500 60,000
Herman Miller, Inc. ................ 1,250 85,313
Oil & Natural Gas - 10.39%
Amoco Corp. ........................ 2,000 173,250
Apache Corp. ....................... 2,300 77,050
Pacific Enterprise ................. 2,200 66,550
Other Industrial Goods & Services - 0.12%
National Cash Register ............. 100 3,525
Pharmaceutical - 5.67%
Alza, Inc. ......................... 3,000 82,500
Pharmacia & Upjohn ................. 2,465 90,281
Retail - 2.47%
Sears Roebuck & Company ............ 1,500 75,375
Steel - 3.68%
Timken Company ..................... 2,100 112,350
Transportation - 2.44%
CSX Corp. .......................... 1,600 74,400
Utilities - 3.58%
American Water Works, Inc. ......... 5,200 109,200
-------
Total Common Stocks
(Cost $1,882,233) .................. 2,931,721
---------
Repurchase Agreements - 3.18%
- -----------------------------
Star Bank ($105,000 GNMA II GTD 8359, 01/20/24) Purchase date 03/31/97,
Maturity Date 04/01/97 Amount Payable at Maturity $97,013
(Cost $97,000) 97,000
Total Investments
(Identified cost $1,979,233) 3,028,721
Other Assets and Liabilities, Net - 0.68% 20,792
- ----------------------------------------- -------
Net Assets - 100% $3,049,513
==========
</TABLE>
<PAGE>
<TABLE>
INVESTMENTS-THE ASSET ALLOCATION FUND
- -------------------------------------
Statement of Net Assets March 31, 1997 (Unaudited)
<CAPTION>
<S> <C> <C>
Number of Market
Mutual Funds - 87.67% Shares Value
- --------------------- --------- -------
Fremont Micro-Cap Fund 478 $ 9,292
Montgomery Small-Cap Opportunity Fund 1,278 18,870
Munder Index 500 Fund Class A 4,157 76,107
Peoples Index Fund, Inc. 1,477 33,654
Seven Seas Small-Cap Fund 3,979 68,319
Vanguard Extended Market Portfolio 773 19,251
Vanguard Index Trust 500 Portfolio 1,776 125,524
Vanguard Index Trust Total Stock Market Portfolio 1,246 22,158
Vanguard Index Value Portfolio 2,486 42,092
Vanguard Small-Cap Stock Portfolio 1,205 23,093
Vanguard Specialized Real Estate Index Fund 3,746 47,122
------
Total Mutual Funds
(Cost $446,440) 485,482
-------
Repurchase Agreements - 9.75%
- -----------------------------
Star Bank ($60,000 GNMA II GTD 8359, 01/20/24) Purchase Date 03/31/97,
Maturity Date 04/01/97 Amount Payable at Maturity $54,008
(Cost $54,000) 54,000
------
Total Investments
(Identified cost $500,440) 539,482
Other Assets and Liabilities, Net - 2.58% 14,264
- ----------------------------------------- ------
Net Assets - 100% $553,746
========
</TABLE>
<PAGE>
<TABLE>
INVESTMENTS-THE FIRST LEXINGTON BALANCED FUND
- ----------------------------------------------
Statement of Net Assets March 31, 1997 (Unaudited)
<CAPTION>
Number of Market
Shares Value
------ -----
<S> <C> <C>
Mutual Funds - 83.52%
- ---------------------
Vanguard Extended Market Portfolio 1,580 $ 39,375
Vanguard Index Trust 500 Portfolio 413 29,173
Vanguard International Growth 1,882 31,716
Vanguard Specialized Real Estate Index Fund 2,350 29,559
Vanguard Total Bond Market Index 4,700 45,217
------
Total Mutual Funds
(Cost $179,500) 175,040
-------
Repurchase Agreements - 12.88%
- ------------------------------
Star Bank ($30,000 GNMA II GTD 8359, 01/20/24) Purchase Date 03/31/97,
Maturity Date 04/01/97 Amount Payable at Maturity $27,004
(Cost $27,000) 27,000
------
Total Investments
(Identified cost $206,500) 202,040
Other Assets and Liabilities, Net - 3.60% 7,548
- ----------------------------------------- -----
Net Assets - 100% $209,588
========
</TABLE>
<PAGE>
<TABLE>
INVESTMENTS-THE TAX-FREE MONEY MARKET FUND
- -----------------------------------------
Statement of Net Assets March 31, 1997 (Unaudited)
<CAPTION>
<S> <C> <C>
Municipal Bonds - 85.95% Par Value Value (Note 2)
- ------------------------ --------- --------------
ALASKA-1.40%
North Slope Borough, Alaska, 7.50% 06/30/1997 Series G-AMBAC O.I.D. $ 100,000 $ 100,974
ALABAMA-1.42%
Dutch Healthcare Authority, Alabama Healthcare Facility Revenue, 7.875%,
MBIA O.I.D., Pre-refunded 06/01/1997 @ 102.00 100,000 102,706
ARIZONA- 5.39.%
Maricopa County, Arizona State Transit Authority, Excise Tax Revenue,
3.75%, 07/01/1997 Regal Area-AMBAC O.I.D. 70,000 70,040
Maricopa County, Arizona Industrial Development Authority Hospital
Facility Revenue, 12.00%, Pre-refunded 07/01/1997 @ 100.50 40,000 41,039
Maricopa County, Arizona Unified School District
Number 69 Paradise Valley, AMBAC 3.85%, 07/01/1997 100,000 100,069
Phoenix, Arizona Civic Import Corporation, 7.45%, Series A-FGIC,
Pre-refunded 07/01/1997 @ 102.00 25,000 25,647
Yuma County, Arizona Hospital District Number 001, 7.25%,
Pre-refunded 06/30/1997 @ 101.00 150,000 153,323
ARKANSAS - 1.25%
North Little Rock, Arkansas Electric Revenue, 5.40%, 07/01/1997 40,000 40,164
Series A-MBIA
Pulaski County, Arkansas Residential Facility, Single Family Revenue,
6.90%, 06/01/1997 FSA ETM 50,000 50,280
CALIFORNIA-1.39%
Alameda County, California Transit Authority Tax Revenue,
4.75%, 05/01/1997 FGIC O.I.D. 25,000 25,028
Rosedale, California Unified School District Revenue,
9.00%, 06/01/1997 Series B-MBIA 25,000 25,228
San Joaquin County, California, 6.40%, 05/15/1997
BIGI-ETM, Pre-refunded @ 102.00 50,000 50,175
COLORADO - 0.35%
Colorado Springs, Colorado Utilities Revenue, 8.00%,
Pre-refunded 05/15/1997 @ 100.00 25,000 25,135
CONNECTICUT -0.69%
New Britain, Connecticut, MBIA 6.60%, 04/01/1997 50,000 50,000
D.C., WASHINGTON -1.83%
District Of Columbia Series B-O.I.D., 7.75%, Pre-refunded 06/01/1997 @ 101.50 100,000 102,276
District Of Columbia Series A-MBIA, 6.00%, 06/01/1997 30,000 30,113
FLORIDA-3.03%
Broward County, Florida, 6.90%, Pre-refunded 07/01/1997 @ 102.00 25,000 25,703
Dade County, Florida Health Facility Revenue, 7.375%,
Baptist Hospital MBIA, Pre-refunded 05/01/1997 @ 102.00 25,000 25,563
Dade County, Florida Public Facility Revenue, 6.80%, 06/01/1997
Jackson Memorial Hospital Series A-MBIA 40,000 40,221
Florida State Board of Education Capital Outlay, 7.75%, Series B-O.I.D.,
Pre-refunded 06/01/1997 @ 102.00 25,000 25,674
Florida State Board Of Education Capital Outlay, 7.625%, Series B-O.I.D.,
Pre-refunded 06/01/1997 @ 102.00 50,000 51,339
Indian River County, Florida School District, 6.25%, 04/01/1997 FSA ETM 25,000 25,000
Sarasota County, Florida Utility System Revenue, 7.50%, AMBAC,
Pre-refunded 06/01/1997 @ 102.00 $ 25,000 $ 25,663
GEORGIA -2.84%
Cherokee County, Georgia School System, 7.50%,
Pre-refunded 06/01/1997 @102.00 200,000 205,299
HAWAII-0.42%
Hawaii State, 7.40%, Pre-refunded 04/01/1997 @ 101.50 30,000 30,450
ILLINOIS-4.57%
Berwyn, Illinois Hospital Revenue, 6.25%,
MacNeal Memorial Hospital Association-O.I.D.,
Pre-refunded 06/01/1997 @100.00 130,000 130,588
Metropolitan Pier & Exposition Authority-AMBAC
Illinois Dedicated State Tax Revenue, 5.00%, 06/01/1997 200,000 200,642
INDIANA-0.69%
Northwest Allen County, Indiana Building Corporation, 4.50%, 06/01/1997 50,000 50,073
KANSAS-0.41%
Whichita, Kansas Water & Sewer Utility Revenue, 4.60%, 04/01/1997 Series B-FGIC 30,000 30,000
KENTUCKY-3.06%
Kentucky State Turnpike Authority Toll Road Revenue, 6.20%,
Pre-refunded 07/02/1997 @ 100.00 220,000 221,480
MARYLAND -3.31%
Baltimore, Maryland CTFS Partnership 7.20%, 04/01/1997
Municipal Capital Projects -BIGI ETM 30,000 30,000
Baltimore, Maryland Revenue, 6.75%,
Baltimore City Package System Facility Series B-FGIC
Pre-refunded 07/01/1997 @ 102.00 20,000 20,476
Maryland State Health & Higher Education Facility Authority Revenue, 7.00%,
Howard County General Hospital O.I.D., Pre-refunded 07/01/1997 @ 102.00 35,000 35,975
Maryland State Transportation Authority Special Obligations, 4.75%, 07/01/1997
Baltimore Washington International Airport Project- Series B-FGIC, O.I.D. 50,000 50,131
Montgomery County, Maryland Construction Public Improvement Revenue, 7.00%,
Series A Pre-refunded 07/01/1997 @ 102.00 100,000 102,848
MASSACHUSETTS-1.39%
Massachusetts State Health & Education Facility Authority Revenue, 6.85%, 07/01/1997
Newton-Wellesley Hospital Issue Series C-BIGI ETM 100,000 100,776
MICHIGAN-1.12%
Grand Rapids, Michigan Building Authority, 8.50%, 04/01/1997 40,000 40,000
Jackson County, Michigan, 6.30%, Pre-refunded 04/01/1997 @ 102.00 40,000 40,800
MISSOURI-4.16%
Missouri State Health & Education Facility Authority
Health Facility Revenue, 6.50%, Pre-refunded 06/01/1997 @100.00
St. Louis Children Hospital-MBIA 300,000 301,350
NORTH CAROLINA-2.76%
Raleigh, North Carolina Sanitation Sewer, 6.00%, 04/01/1997 200,000 200,000
NEBRASKA-0.49%
Municipal Energy Agency of Nebraska Power Supply System Revenue, 7.50%,
Series A-AMBAC, O.I.D., Pre-refunded 04/01/1997 @ 102.00, $ 35,000 $ 35,700
NEVADA-1.38%
Nye County, Nevada School District, 7.00%, 05/01/1997, BIGI 100,000 100,247
NEW JERSEY-1.04%
North New Jersey District Water Supply, 4.55%, 07/01/1997
Wanaque South Project-MBIA 50,000 50,117
New Jersey State Educational Facilities Authority Revenue, 5.70%, 07/01/1997
Princeton University Series A 25,000 25,129
NEW MEXICO-0.43%
Albuquerque, New Mexico Airport Service Revenue, 9.25%,
Series A-MBIA O.I.D., Pre-refunded 07/01/1997 @ 101.50 30,000 30,869
NEW YORK-3.03%
New York Municipal Assistance Corporation, 6.50%,
Series 59-MBIA O.I.D., Pre-refunded 07/01/1997 @ 102.00 100,000 102,654
Nassau County, New York, 6.10%, 05/01/1997, FGIC O.I.D. 30,000 30,061
Nassau County, New York, Series A-FGIC O.I.D., 7.25%,
Pre-refunded 05/15/1997 @ 103.00 25,000 25,820
New York Municipal Water Finance Authority, 6.50%,
Water & Sewer Revenue, Refunded Balance- Series C-AMBAC O.I.D.,
Pre-refunded 06/15/1997 @ 101.50 25,000 25,572
William Floyd Unified Free School District, New York, 5.65%, 06/15/1997
Mastics-Moriches- Shirley FGIC 35,000 35,145
OHIO-1.06%
Ohio State Water Development Authority Revenue, 7.75%, Series I
Pure Water, Pre-refunded 06/01/1997 @ 102.00 75,000 77,016
OKLAHOMA-5.59%
Grand River Dam Authority Oklahoma Revenue, 6.45%,
Pre-refunded 06/01/1997 @ 102.00 95,000 97,342
Grand River Dam Authority Oklahoma Revenue, O.I.D., 7.00%,
Pre-refunded 06/01/1997 @ 102.00 30,000 30,767
Grand River Dam Authority Oklahoma Revenue, BIGI O.I.D., 7.00%,
Pre-refunded 06/01/1997 @ 102.00 80,000 81,946
Grand River Dam Authority Oklahoma Revenue, O.I.D., 7.00%,
Pre-refunded 06/01/1997 @ 102.00 40,000 41,022
Grand River Dam Authority Oklahoma Revenue, FSA O.I.D., 7.00%,
Pre-refunded 06/01/1997 @ 102.00 150,000 153,847
PENNSYLVANIA-8.21%
Dauphin County, Pennsylvania General Hospital Authority, 5.00%, 07/01/1997
Hapsco-Western Pennsylvania Hospital Project Series A-MBIA 110,000 110,353
Harrisburg, Pennsylvania Authority Lease Revenue, 5.80%, 06/01/1997
FSA ETM 200,000 200,755
Northeastern Pennsylvania Hospital Authority Revenue, 8.375%,
Wilkes Barren Gen-Series B-MBIA, O.I.D., Pre-refunded 07/01/1997 @ 102.00 20,000 20,630
Pennsylvania Intergovernment Cooperative Authority Special Tax Revenue,
5.40%, 06/15/1997, City of Philadelphia, FGIC O.I.D., ETM $ 25,000 $ 25,084
Pennsylvania State Higher Education Facility Authority, Series D-MBIA ETM
6.60%, 06/01/1997, 25,000 25,145
Pennsylvania State Industrial Development Authority Revenue, 4.50%, 07/01/1997
Economic Development-AMBAC 25,000 25,053
Philadelphia, Pennsylvania Gas Works Revenue, 7.875%,
Eleventh Series A-O.I.D., Pre-refunded 07/01/1997 @ 102.00 50,000 51,497
Philadelphia, Pennsylvania School District, 4.30%, 07/01/1997
Series A-MBIA O.I.D. 35,000 35,063
Philadelphia, Pennsylvania School District, 6.25%, 07/01/1997
Series A-AMBAC O.I.D. 15,000 15,095
University Of Pittsburgh Pennsylvania Higher Education, 8.375%,
University Capital Project-Series A-MBIA, Pre-refunded 06/01/1997 @ 102.00 25,000 25,698
Wilson, Pennsylvania Area School District, 6.00%, Series A-AMBAC
Pre-refunded 05/15/1997 @ 100.00 60,000 60,167
PUERTO RICO-2.48%
Puerto Rico Commonwealth Public Improvement Revenue, 7.25%,
Pre-refunded 07/01/1997 @ 102.00 100,000 102,845
Puerto Rico Public Building Authority Revenue, 7.875%,
Series H-O.I.D., Public Education Health Facility
Pre-refunded 07/01/1997 @ 102.00 50,000 51,516
Puerto Rico Electric Power Authority Revenue, 6.80%, 07/01/1997
Series M-BIGI 25,000 25,198
TENNESEE-2.20%
Metropolitan Nashville & Davidson County, Tennessee Health & Education
Facility Revenue, Vanderbilt University 6.875%, Series A-O.I.D.,
Pre-Refunded 07/01/1997 @ 102.00 155,000 159,327
TEXAS-6.58%
Austin, Texas Electric Light & Power Waterworks & Sewer System Revenue
O.I.D., ETM 6.25%, 04/01/1997 20,000 20,000
Austin, Texas Utility System Revenue 5.50%, 04/01/1997
Series I-FGIC O.I.D., ETM 100,000 100,000
Harris County, Texas, 9.00%, 06/01/1997 ETM 25,000 25,228
San Antonio, Texas Water Revenue, Prior Lien, 7.50%,
Pre-refunded 05/01/1997 @ 101.50 300,000 305,727
Tarrent County, Texas Health Facility Development Corporation Hospital Revenue,
7.25%, Pre-refunded 05/01/1997 @ 102.00
Fort Worth Osteopathic-MBIA O.I.D. 25,000 25,574
UTAH-5.27%
Intermountain Power Agency Utah Power Supply, 8.625%,
Series C-O.I.D., Pre-refunded 07/01/1997 @ 102.00 180,000 185,832
St. George, Utah Water Revenue, 7.125%,
Series B-FGIC, Pre-refunded 06/01/1997 @ 100.00 195,000 196,063
VIRGINIA-5.67%
Kanawha County, West Virginia Building Community Revenue,
Charleston Area Medical Center Series A-MBIA O.I.D., 7.10%,
Pre-Refunded 06/01/1997 @ 102.00 $ 300,000 $ 307,744
Norfolk, Virginia Development, 6.00%,
Pre-Refunded 06/01/1997 @ 102.00 50,000 51,213
Virginia State Refund, 6.40%,
Pre-Refunded 06/01/1997 @ 102.00 50,000 51,220
WASHINGTON-1.04%
Washington State Healthcare Facility Authority Revenue,
VA Mason Medical Center-MBIA, 7.00%, 07/01/1997 75,000 75,615
------
Total Municipal Bonds
(Amortized cost $6,223,144) 6,223,144
---------
Repurchase Agreements-12.02%
Star Bank ($960,000 GNMAII GTD 8359 01/20/24) Purchase date 03/31/97,
Maturity Date 04/01/97 Amount payable at Maturity $870,120
(Cost $870,000) 870,000
-------
Total Investments
(Amortized cost $7,093,144) 7,093,144
Other Assets and Liabilities, Net - 2.03% 147,342
- ------------------------------------------ -------
Net Assets - 100% $7,240,486
=========
PORTFOLIO ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
ADR American Depository Receipt
BIGI Bond Insurance Group Issue(purchased by MBIA)
CGIC Capital Guaranty Insurance Corporation
ETM Escrow To Maturity
FGIC Federal Guaranty Insurance Corporation
FSA Federal Security Assurance
MBIA Municipal Bond Investors Assurance
O.I.D. Original Issue Discount
</TABLE>
<PAGE>
<TABLE>
INVESTMENTS-THE TAXABLE MONEY MARKET FUND
- -----------------------------------------
Statement of Net Assets March 31,1997
<CAPTION>
<S> <C> <C>
Commercial Paper - 24.72% Par Value Value (Note 2)
- ------------------------- --------- --------------
AT & T Corporation 5.25% 6/06/1997 $2,500,000 $2,475,938
Disney Walt Company 5.30% 6/30/1997 1,000,000 986,750
Ford Motor Credit Corporation 5.30% 4/04/1997 2,000,000 1,999,117
General Electric Capital Corporation 5.29% 4/07/1997 1,000,000 999,119
General Motors Credit Corporation 5.35% 5/13/1997 1,692,000 1,681,439
Lucent Technologies 5.26% 4/07/1997 1,000,000 999,123
Smith Barney 5.30% 4/11/1997 1,500,000 1,497,791
United Parcel Service 5.23% 6/06/1997 2,000,000 1,980,823
---------
Total Commercial Paper
(Amortized cost $12,620,100) 12,620,100
----------
U.S. Government Securities - 66.68%
- -----------------------------------
Federal Home Loan Bank 5.26% 7/14/1997 2,000,000 1,969,562
Federal Home Loan Bank 5.21% 7/07/1997 2,500,000 2,464,905
Federal Home Loan Bank 5.24% 4/17/1997 1,500,000 1,496,507
Federal Home Loan Bank 5.15% 5/20/1997 2,000,000 1,985,980
Federal Home Loan Discount Note 5.36% 8/01/1997 2,500,000 2,454,589
Federal Home Loan Discount Note 5.36% 8/15/1997 2,500,000 2,449,378
Federal Home Loan Mortgage 5.22% 5/30/1997 2,000,000 1,982,890
Federal Agricultural Mortgage Association 5.24% 4/04/1997 1,000,000 999,564
Federal Farm Credit Bank 5.22% 7/01/1997 3,000,000 2,960,415
Federal National Mortgage Association 5.23% 4/28/1997 1,500,000 1,494,116
Federal National Mortgage Association 5.23% 6/23/1997 1,500,000 1,481,913
Federal National Mortgage Association 5.47% 8/28/1997 1,500,000 1,466,040
Federal National Mortgage Association 5.26% 7/15/1997 2,000,000 1,969,317
Federal National Mortgage Association 5.25% 7/21/1997 2,000,000 1,967,625
Federal National Mortgage Association 5.29% 7/22/1997 2,000,000 1,967,344
Federal National Mortgage Association 5.47% 8/27/1997 1,000,000 977,512
Federal National Mortgage Association 5.26% 6/25/1997 4,000,000 3,950,322
-----------
Total U.S. Government Securities
(Amortized cost $34,037,979) 34,037,979
----------
Repurchase Agreements - 8.76%
- ----------------------------
Star Bank ($4,800,000 GNMA II GTD 8359 01/20/24) Purchase Date 03/31/97,
Maturity Date 04/01/97 Amount payable at Maturity $4,473,621
(Cost $4,473,000) 4,473,000
---------
Total Investments
(Amortized cost $51,131,079) 51,131,079
Other Assets and Liabilities, Net - (0.16%) (80,357)
- ------------------------------------------- --------
Net Assets - 100% $51,050,722
===========
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------
March 31, 1997 (Unaudited)
<CAPTION>
Starwood Aggressive Asset
Strategic Growth Laidlaw Allocation
Fund Fund Fund Fund
---- ---- ---- ----
<S> <C> <C> <C> <C>
ASSETS
Investments, at value (Note 2) ........ $ 625,941 $ 360,825 $ 3,028,721 $ 539,482
Cash .................................. 485 18,845 474 71
Dividend receivable ................... 434 300 7,050 --
Interest receivable ................... 11 -- 13 7
Receivable from adviser (Note 3) ...... 3,394 3,628 6,938 3,638
Receivable for shares sold ............ -- -- -- --
Receivable for investments sold ....... -- 41,293 -- --
Deferred organization costs (Note 2)... 2,691 2,691 2,692 2,692
Prepaid expenses ...................... 8,074 9,426 6,569 9,433
----------- ----------- ----------- -----------
Total assets .......................... 641,030 437,008 3,052,457 555,323
LIABILITIES
Dividends payable ..................... -- -- -- --
Payable for shares redeemed ........... -- 67,821 -- --
Accrued expenses ...................... 1,734 1,423 2,944 1,577
----------- ----------- ----------- -----------
Total liabilities...................... 1,734 69,244 2,944 1,577
----------- ----------- ----------- -----------
NET ASSETS ................................. $ 639,296 $ 367,764 $ 3,049,513 $ 553,746
=========== =========== =========== ===========
Net assets consist of:
Paid-in capital ....................... 618,589 432,322 1,934,075 520,659
Undistributed net investment income ... (9,276) 10,877 (2,980) 7,413
Net realized gain (loss) on investments 4,923 (34,094) 68,930 (13,368)
Net unrealized appreciation in
value of investments................. 25,060 (41,341) 1,049,488 39,042
----------- ----------- ----------- ---------
Net assets ................................. $ 639,296 $ 367,764 $ 3,049,513 $ 553,746
=========== =========== =========== ===========
Shares of capital stock
outstanding (no par value,
unlimited shares authorized) .......... 82,799 43,339 1,698,844 57,931
Net asset value per share, offering
and redemption price .................. $7.72 $8.49 $1.80 $9.56
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------
March 31, 1997 (Unaudited)
<CAPTION>
Taxable First Taxable Tax-Free
Fixed Lexington Money Money
Income Balanced Market Market
Fund Fund Fund Fund
---- ---- ---- ----
<S> <C> <C> <C> <C>
ASSETS
Investments, at value (Note 2) ........ $ --- $202,040 $51,131,079 $7,093,144
Cash .................................. 7,660 294 728,248 34,504
Dividend receivable ................... --- --- --- ---
Interest receivable ................... --- 4 2,836 137,242
Receivable from adviser (Note 3) ...... 2,509 2,556 31,231 10,649
Receivable for shares sold ............ --- --- 118,463 9,683
Receivable for investments sold ....... --- --- --- ---
Deferred organization costs (Note 2)... 2,692 2,692 2,701 2,701
Prepaid expenses ...................... 3,993 4,414 12,471 5,365
--------- --------- ------------ ------------
Total assets .......................... 16,854 212,000 52,027,029 7,293,288
LIABILITIES
Dividends payable ..................... --- --- 182,978 18,655
Payable for shares purchased .......... --- --- 760,354 15,724
Accrued expenses ...................... 639 2,412 32,975 18,423
----------- ----------- ------------ -----------
Total liabilities ..................... 639 2,412 976,307 52,802
----------- ----------- ----------- -----------
NET ASSETS ................................ $ 16,215 $ 209,588 $51,050,722 $7,240,486
============ ========= ========== =========
Net assets consist of:
Paid-in capital ....................... 20,988 220,110 51,050,722 7,240,486
Undistributed net investment income ... (4,773) (6,062) --- ---
Net realized gain (loss) on investments --- --- --- ---
Net unrealized appreciation in
value of investments .............. --- (4,460) --- ---
------------- ------------ ---------- ---------
Net assets ................................. $ 16,215 $ 209,588 $51,050,722 $7,240,486
=========== ========= ========== =========
Shares of capital stock
outstanding (no par value,
unlimited shares authorized) .......... 14,911 21,471 51,050,722 7,240,486
Net asset value per share, offering
and redemption price .................. $ 1.09 $ 9.76 $1.00 $1.00
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
- ------------------------
For the Six Months Ended March 31, 1997 (Unaudited)
<CAPTION>
Starwood Aggressive Asset
Strategic Growth Laidlaw Allocation
Fund Fund Fund Fund
---- ---- ---- ----
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest .............................. $ 914 $ 571 $ 522 $ 1,063
Dividends ............................. 2,308 21,289 18,496 17,746
-------- ------- ------- -------
Total net income ................. 3,222 21,860 19,018 18,809
-------- ------- ------- -------
EXPENSES:
Investment adviser fees (Note 3) ...... 2,276 1,863 6,769 2,078
Transfer agent fees (Note 3) .......... 205 168 609 187
Fund accounting fees .................. 205 168 609 187
Printing .............................. 222 205 390 206
Administrative service fees ........... 910 745 2,707 831
12b-1 fees (Note 3) ................... 304 248 903 277
Auditing fees ......................... 748 748 1,777 748
Legal fees ............................ 342 342 4,826 342
Trustee's fees ........................ 558 548 747 553
Custodian fees ........................ 221 159 587 178
Registration and filing fees .......... 7,149 6,932 5,508 6,913
Postage ............................... 142 125 305 133
Servicing fees ........................ 455 372 1,354 415
Amortization of organization expenses . 424 424 424 424
Insurance ............................. 1,385 1,385 1,155 1,385
Other expenses ........................ 346 179 266 177
--------- --------- --------- ---------
Total net expenses ................. 15,892 14,611 28,936 15,034
------- ------- ------- -------
Less: Expense reimbursement
from adviser (Note 3) ................. (3,394) (3,628) (6,938) (3,638)
----------- ---------- ----------- ----------
NET INVESTMENT INCOME (LOSS) ............... (9,276) 10,877 (2,980) 7,413
-------- ------- --------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ..........................
Net realized gain (loss) on investments 4,923 (34,094) 68,930 (13,368)
Change in net unrealized
appreciation of investments ...... 5,559 (42,481) 1,049,488 22,876
-------- --------- ---------- -------
Net gain (loss) on investments ........ 10,482 (76,575) 1,118,418 9,508
------- --------- ---------- --------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............. $ 1,206 $ (65,698) $ 1,115,438 $ 16,921
========= ======== ========== =======
</TABLE>
The accompaying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
- ------------------------
For the Six Months Ended March 31, 1997 (Unaudited)
<CAPTION>
Taxable First Taxable Tax-Free
Fixed Lexington Money Money
Income Balanced Market Market
Fund Fund Fund Fund
---- ---- ---- ----
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest .............................. $ --- $ 64 $1,365,162 $131,423
Dividends ............................ --- 368 --- ---
---------- --------- --------- ------------
Total net income................ --- 432 1,365,162 131,423
---------- --------- --------- -------
EXPENSES:
Investment adviser fees (Note 3) ...... 23 61 130,060 17,612
Transfer agent fees (Note 3) .......... 3 4 6,503 880
Fund accounting fees .................. 3 4 6,503 880
Printing .............................. 9 10 15,644 3,198
Administrative service fees ........... 14 23 35,116 4,755
12b-1 fees (Note 3) ................... 5 12 26,012 3,522
Auditing fees ......................... 196 475 8,905 596
Legal fees ............................ 325 1,845 8,717 1,106
Trustee's fees ........................ 523 501 16,437 2,543
Custodian fees ........................ 3 8 15,777 2,238
Registration and filing fees .......... 4,403 4,505 14,822 9,106
Postage ............................... 4 42 9,976 1,545
Servicing fees ........................ 3 18 39,018 1,482
Amortization of organization expenses . 424 424 424 424
Insurance ............................. 1,330 1,107 848 967
Other expenses ........................ 14 11 10,401 14,622
----------- ---------- ---------- ---------
Total expenses ...................... 7,282 9,050 345,163 65,476
--------- -------- --------- ---------
Less: Expense reimbursement
from adviser (Note 3)................. (2,509) (2,556) (31,2321) (10,649)
------------ -------- ----------- ---------
NET INVESTMENT INCOME (LOSS) ............... (4,773) (6,062) 1,051,230 76,596
--------- -------- --------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments --- --- --- 32
Change in net unrealized
appreciation of investments .......... --- (4,460) --- ---
------- ----- --------- -------------
Net gain (loss) on investments ........ --- (4,460) --- 32
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............. $ (4,773) $(10,522) $1,051,230 $ 65,979
========== ======== ========= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<CAPTION>
Starwood Strategic Fund Aggressive Growth Fund
----------------------- ----------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ................... $ (9,276) $ (27,288) $ 10,877 $ (23,917)
Net realized gain on investments ............... 4,923 (11,719) (34,094) 2,530
Change in net unrealized appreciation of investments 5,559 19,501 (42,481) 1,140
-------- --------- ---------- --------
Increase in net assets resulting from operations 1,206 (19,506) (65,698) (20,247)
Dividends and distributions to shareholders from:
Net investment Income .......................... --- --- --- ---
Net realized gain of investments ............... --- --- --- ---
------------ ------------ ------------- -------------
TOTAL INCREASE (DECREASE) ........................... 1,206 (19,506) (65,698) (20,247)
---------- --------- ---------- ----------
Capital share transactions:
Proceeds from shares sold ...................... 184,020 506,045 21,437 761,506
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
------------ ----------- ----------- ---------
184,020 506,045 21,437 761,506
Cost of shares redeemed .......................... (29,388) (5,786) (161,497) (168,077)
-------- --------- -------- ----------
Net increase in net assets resulting from
capital share transactions ................ 154,632 500,259 (140,060) 593,429
------- -------- --------- ---------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............. 155,838 480,753 (205,758) 573,182
NET ASSETS:
Beginning of period ............................ 483,458 2,705 573,522 340
-------- ----------- -------- ------------
End of period (including undistributed net
investment income/net investment loss) .... $ 639,296 $ 483,458 $ 367,764 $ 573,522
======= =========== ======= =========
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 23,559 63,263 2,380 75,415
Shares issued to shareholders in reinvestment
dividends and distributions .................. --- --- --- ---
------------ ------------- ------------ --------
23,559 63,263 2,380 75,415
Shares redeemed ................................ (3,598) (696) (17,534) (16,956)
---------- ------------ -------- ----------
NET INCREASE (DECREASE) IN NUMBER
OF SHARES OUTSTANDING .......................... 19,961 62,567 (15,154) 58,459
======== ======== ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<CAPTION>
Laidlaw Fund Asset Allocation Fund
------------ ---------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ...................$ (2,980) $ (69) $ 7,413 $ (25,231)
Net realized gain on investments ............... 68,930 --- (13,368) (10,586)
Change in net unrealized appreciation of investments 1,049,488 --- 22,876 16,166
---------- ----------- --------- --------
Increase in net assets resulting from operations 1,115,438 (69) 16,921 (19,651)
Dividends and distributions to shareholders from:
Net investment income .......................... --- --- --- ---
Net realized gain of investments ............... --- --- --- ---
----------- ----------- ------------ ------------
TOTAL INCREASE (DECREASE) ........................... 1,115,438 (69) 16,921 (19,651)
---------- ----------- -------- ---------
Capital share transactions:
Proceeds from shares sold ...................... 3,348,252 157,505 13,575 719,581
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
----------- ----------- --------- ----------
3,348,252 157,505 13,575 719,581
Cost of shares redeemed ............................. (1,570,795) (4,227) (44,269) (132,511)
----------- ---------- -------- ---------
Net increase in net assets resulting from
capital share transactions ................ 1,777,457 153,278 (30,694) 587,070
----------- -------- --------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............ 2,892,895 153,209 (13,773) 567,419
NET ASSETS:
Beginning of period ............................ 156,618 3,409 567,519 100
------------ ---------- -------- -----------
End of period (including undistributed net
investment income/net investment loss) ....$ 3,049,513 $ 156,618 $ 553,746 $ 567,519
=========== ======== ======== ========
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 1,938,135 80,021 1,396 75,043
Shares issued to shareholders in reinvestment
dividends and distributions ............... --- --- --- ---
------------- ---------- ------------ ------------
1,938,135 80,021 1,396 75,043
Shares redeemed ................................ (319,116) (537) (4,703) (13,815)
----------- ---------- --------- ---------
NET INCREASE (DECREASE) IN NUMBER
OF SHARES OUTSTANDING .......................... 1,619,019 79,484 (3,307) 61,228
=========== ======= ========= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------
<CAPTION>
<CAPTION>
Taxable Fixed First Lexington
Income Fund Balanced Fund
----------- -------------
Six Months Year Six Months Year
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ................... $ (4,773) $ (26,608) $ (6,062) $ (26,650)
Net realized gain on investments ............... --- --- --- ---
Change in net unrealized appreciation of investments --- --- (4,460) ---
----------- ------------ ---------- -------
Increase in net assets resulting from operations (4,773) (26,608) (10,522) (26,650)
Dividends and distributions to shareholders from:
Net investment income .......................... --- --- --- ---
Net realized gain of investments ............... --- --- --- ---
------------ ------------ ------------ -----------
TOTAL INCREASE (DECREASE) ........................... (4,773) (26,608) (10,522) (26,650)
--------- --------- -------- ---------
Capital share transactions:
Proceeds from shares sold ...................... 12,000 43,317 222,844 82,312
Value of shares issued to shareholders in
reinvestment of dividends and distributions --- --- --- ---
----------- ------------ ------------- ----------
12,000 43,317 222,844 82,312
Cost of shares redeemed ............................ --- (7,821) (11,722) (46,774)
---------- ---------- ---------- --------
Net increase in net assets resulting from
capital share transactions ................ 12,000 35,496 211,122 35,538
-------- -------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............. 7,227 8,888 200,600 8,888
NET ASSETS:
Beginning of period ............................ 8,988 100 8,988 100
-------- ---------- -------- ---------
End of period (including undistributed net
investment income/net investment loss) ... $ 16,215 $ 8,988 $ 209,588 $ 8,988
======= ========= ======== ========
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 11,008 5,117 36,988 13,427
Shares issued to shareholders in reinvestment
dividends and distributions ............... --- --- --- ---
----------- ------------ ------------ -----------
11,008 5,117 36,988 13,427
Shares redeemed ................................ --- (1,224) (23,444) (5,510)
----------- ---------- -------- ---------
NET INCREASE (DECREASE) IN NUMBER
OF SHARES OUTSTANDING .......................... 11,008 3,893 13,544 7,917
======= ========= ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<CAPTION>
Taxable Money Tax-Free Money
Market Fund Market Fund
----------- -----------
Six Months Year Six Months Year
Ended Ended Ended Ended
March 31, Sept 30, March 31, Sept 30,
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ...................$ 1,051,230 $ 1,626,449 $ 76,596 $ 129,693
Net realized gain on investments ............... --- --- 32 (225)
Change in net unrealized appreciation of investments --- --- --- ---
---------- ----------- ---------- ---------
Increase in net assets resulting from operations 1,051,230 1,626,449 76,628 129,468
Dividends and distributions to shareholders from:
Net investment income .......................... (1,051,230) (1,626,449) (76,628) (129,693)
Net realized gain of investments ............... --- --- --- ---
------------- ------------ --------- ----------
TOTAL INCREASE (DECREASE)............................ --- --- --- (225)
------------- ------------ --------- ----------
Capital share transactions:
Proceeds from shares sold ...................... 81,371,824 159,908,254 6,272,391 19,344,229
Value of shares issued to shareholders in
reinvestment of dividends and distributions 1,023,245 1,471,593 69,040 118,174
-------------- -------------- ------------ ----------
82,395,069 161,379,847 6,341,431 19,462,403
Cost of shares redeemed .......................... (81,888,858) (112,065,721) (6,435,055) (12,128,168)
----------- ------------ ---------- ------------
Net increase in net assets resulting from
capital share transactions ................ 506,211 49,314,126 (93,624) 7,334,235
------------- ------------- ------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............. 506,211 49,314,126 (93,624) 7,334,010
NET ASSETS:
Beginning of period ............................ 50,544,511 1,230,385 7,334,110 100
------------ ------------- ------------ ------------
End of period (including undistributed net
investment income/net investment loss) ..$ 51,050,722 $ 50,544,511 $ 7,240,486 $7,334,110
============ ============ ============ ==========
Shares of capital stock of the Fund sold and redeemed:
Shares sold .................................... 81,371,824 159,908,254 6,272,165 19,344,229
Shares issued to shareholders in reinvestment
dividends and distributions ............... 1,023,245 1,471,593 69,040 118,174
------------- -------------- ------------- ----------
82,395,069 161,379,847 6,341,205 19,462,403
Shares redeemed ..................................... (81,888,858) (112,065,721) (6,435,054) (12,128,168)
------------ ------------ ---------- ------------
NET INCREASE (DECREASE) IN NUMBER
OF SHARES OUTSTANDING .......................... 506,211 49,314,126 (93,849) 7,334,235
============= ============ ============== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
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.
<CAPTION>
Starwood Starwood Starwood Aggressive Aggressive Aggressive
Strategic Strategic Strategic Growth Growth Growth
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
1997(a) 1996(b) 1995(c) 1997(a) 1996(b) 1995(c)
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning .... $ 7.69 $10.00 $10.00 $ 9.80 $10.00 $10.00
Income from investment
Operations:
Net investment income .... (0.11) (3.23) 0.00 0.22 (0.24) 0.00
Net realized and unrealized
gain (loss) on investments 0.14 0.92 0.00 (1.53) 0.04 0.00
----- ----- ----- ------ ----- -----
Total from investment income .. (0.03) (2.31) 0.00 (1.31) (0.20) 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 $ 7.72 $ 7.69 $10.00 $ 8.49 $ 9.80 $10.00
===== ===== ===== ===== ===== ======
TOTAL RETURN (%) (h).............. (0.78)(d) (3.97)(e)(d) (f) (26.81)(d) (2.72)(g)(d) (f)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 639,296 483,458 2,705 367,764 573,522 340
Ratio of expenses to
average net assets .. 4.55% 15.99% 0.00% 5.10% 9.74% 0.00%
Ratio of expenses (after
reimbursement) to
average net assets .. 3.58% 15.25% 0.00% 3.83% 9.01% 0.00%
Ratio of net investment
income to average net assets(3.63%) (14.42%) 0.00% 2.53% (8.07%) 0.00%
Ratio of net investment
income (after reimbursement)
to average net assets (2.65%) (13.68%) 0.00% 3.80% (7.33%) 0.00%
Portfolio turnover........ 164.00% 169.83% 0.00% 25.02% 51.44% 0.00%
Average commission rate paid $ 0.0600 $ 0.0600 $ ---- $ 0.0000 $ 0.0000 $ ----
<FN>
(a) For the Six Months Ended March 31, 1997.
(b) For the Year-Ended September 30,1996.
(c) For the Period June 2,1995(commencement of operations) to September 30,
1995.
(d) Annualized Return.
(e) For the period April 4, 1996(commencement of investment in accordance
with objective) to September 30, 1996.
(f) Investment in accordance with objective had not commenced at this time.
(g) For the period March 13, 1996 (commencement of investment in accordance
with objective) to September 30, 1996.
(h) Total return would have been lower had certain expenses not been reduced
during the periods shown (see Note 3).
</FN>
</TABLE>
<PAGE>
<TABLE>
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.
<CAPTION>
Laidlaw Laidlaw Laidlaw Laidlaw Laidlaw
Laidlaw Covenant Covenant Covenant Covenant Covenant
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
1997(a)(b) 1996(c) 1995(d) 1994(d) 1993(d) 1992(e)
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning .... $ 1.96 $14.96 $12.91 $12.92 $12.56 $11.94
Income from investment
Operations:
Net investment income .... (0.22) 0.03 0.00 0.01 0.02 0.08
Net realized and unrealized
gain (loss) on investments 0.06 0.66 3.82 0.35 0.49 1.03
----- ----- ----- ----- ----- -----
Total from investment income . (0.16) 0.69 3.82 0.36 0.51 1.11
Less distributions:
Dividends from net
investment income ... 0.00 (0.70) (1.77) (0.37) (0.15) (0.49)
----- ------- ------- ----- ----- -----
Total from distributions ...... 0.00 (0.70) (1.77) (0.37) (0.15) (0.49)
----- ------- ------- ----- ----- -----
Net asset value at end of period $ 1.80 $ 14.95 $14.96 $12.91 $12.92 $12.56
===== ====== ===== ===== ===== =====
TOTAL RETURN (%)(g).............. 21.10(f) 6.19(f) 29.59(f) 2.86(f) 4.06(f) 11.20(f)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 3,049,513 3,313,000 4,497,000 4,381,000 4,996,000 4,284,000
Ratio of expenses to
average net assets .. 2.31% 4.81% 4.57% 5.20% 5.80% 7.09%
Ratio of expenses (after
reimbursement) to
average net assets .. 1.76% 2.44% 2.50% 2.50% 2.50% 2.50%
Ratio of net investment
income to average net assets(0.79%) (2.09%) (2.10%) (2.57%) (3.16%) (3.90%)
Ratio of net investment
income (after reimbursement)
to average net assets (0.24%) 0.28% 0.02% 0.11% 0.16% 0.69%
Portfolio turnover ....... 49.62% 5.92% 61.00% 73.00% 107.00% 128.00%
Average commission rate paid $ 0.0600 $ 0.0100 $ 0.0000 $ 0.0000 $ 0.0000 $ 0.0000
<FN>
(a) For the Six Months Ended March 31, 1997.
(b) The name of the fund was changed during the period (see Note 5).
(c) For the Nine Months Ended September 30, 1996.
(d) For the Year Ended.
(e) For the period March 3, 1992 (commencement of operations) to December 31,
1992.
(f) Annualized Return.
(g) Total return would have been lower had certain expenses not been reduced
during the periods shown (see Note 3).
</FN>
</TABLE>
<PAGE>
<TABLE>
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.
<CAPTION>
Taxable Taxable Taxable
Asset Asset Asset Fixed Fixed Fixed
Allocation Allocation Allocation Income Income Income
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
1997(a) 1996(b) 1995(c) 1997(a) 1996(b) 1995(c)
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning .... $ 9.27 $10.00 $10.00 $ 2.30 $10.00 $10.00
Income from investment
Operations:
Net investment income .... 0.13 (0.93) 0.00 (1.21) (7.70) 0.00
Net realized and unrealized
gain (loss) on investments 0.16 0.20 0.00 0.00 0.00 0.00
----- ----- ----- ------- ----- -----
Total from investment income . 0.29 (0.73) 0.00 (1.21) (7.70) 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 $ 9.56 $ 9.27 $10.00 $ 109 $ 2.30 $10.00
====== ====== ====== ===== ====== ======
TOTAL RETURN (%) .............. 6.27(d) (1.16)(e)(d) (f) (f) (f) (f)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 13,706 567,519 100 16,215 8,988 100
Ratio of expenses to
average net assets .. 139.54% 9.61% 0.00% 113.98% 197.93% 0.00%
Ratio of expenses (after
reimbursement) to
average net assets .. 139.54% 8.87% 0.00% 74.71% 197.21% 0.00%
Ratio of net investment
income to average net assets 0.00% (8.36%) 0.00% (113.98%) (197.67%) 0.00%
Ratio of net investment
income (after reimbursement)
to average net assets 0.00% (7.61%) 0.00% (74.71%) (195.96%) 0.00%
Portfolio turnover ....... 0.00% 123.14% 0.00% 0.00% 0.00% 0.00%
Average commission rate paid $ 0.0000 $ 0.0000 $ ---- $ 0.0000 $ 0.0000 $ ----
<FN>
(a) For the Six Months Ended March 31, 1997.
(b) For the Year-Ended September 30,1996.
(c) For the Period June 2, 1995 (commencement of operations) to September 30, 1995.
(d) Annualized Return.
(e) For the period March 13, 1996 (commencement of investment in accordance with objective) to September 30,
1996.
(f) Investment in accordance with objective had not commenced at this time.
(g) Total return would have been lower had certain expenses not been reduced during the periods
shown (see Note 3).
</FN>
</TABLE>
<PAGE>
<TABLE>
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.
<CAPTION>
First Municipal Municipal Taxable Taxable Taxable
Lexington Fixed Fixed Money Money Money
Balanced Income Income Market Market Market
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
1997(a)(b) 1996(c) 1995(d) 1997(a) 1996(c) 1995(d)
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning .... $22.60(e) $10.00 $10.00 1.00 $ 1.00 $ 1.00
Income from investment
Operations:
Net investment income .... (12.64) (8.87) 0.00 0.02 0.04 0.002
Net realized and unrealized
gain (loss) on investments (0.20) 0.00 0.00 0.00 0.00 0.000
----- ----- ------ ----- ----- -----
Total from investment income . (12.84) (8.87) 0.00 0.02 0.04 0.002
Less distributions:
Dividends from net
investment income ... 0.00 0.00 0.00 (0.02) (0.04) (0.002)
------- ------ ------- ------- ------- -------
Total from distributions ...... 0.00 0.00 0.00 (0.02) (0.04) (0.002)
------- ------ ------- ------- ------- -------
Net asset value at end of period $ 9.76 $1.13 $10.00 $ 1.00 $ 1.00 $ 1.00
===== ===== ===== ===== ===== =====
TOTAL RETURN (%)(g).............. (2.30)(f) (h) (h) 4.37(i) 4.13(i) 0.20(i)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 209,588 8,988 100 51,050,722 50,544,511 1,230,385
Ratio of expenses to
average net assets .. 35.63%(j) 181.72% 0.00% 1.14% 1.25% 12.82%
Ratio of expenses (after
reimbursement) to
average net assets .. 30.63%(j) 181.01% 0.00% 1.03% 1.16% 0.47%
Ratio of net investment
income to average net assets (33.59%) (181.58%) 0.00% 3.36% 4.12% (11.94%)
Ratio of net investment
income (after reimbursement)
to average net assets (28.60%) (180.86%) 0.00% 3.46% 4.21% 0.65%
Portfolio turnover ....... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Average commission rate paid $ 0.0000 $ 0.0000 $ --- $ 0.0000 $ 0.0000 $ ----
<FN>
(a) For the Six Months Ended March 31, 1997.
(b) The name of the fund was changed during the period (see Note 5).
(c) For the Year Ended September 30, 1996.
(d) For the Period June 2, 1995 (commencement of operations) to September 30, 1995.
(e) Beginning balance adjusted for reverse stock split (see Note 5).
(f) For the period March 13, 1997 (commencement of investment in accordance with objective)
to March 31, 1997.
(g) Total return would have been lower had certain expenses not been reduced during the periods
shown (see Note 3).
(h) Investment in accordance with objective had not commenced at this time.
(i) Annualized Return.
(j) Prior to March 13, 1997, the Fund was not open for investment, thus distorting the
expense ratio for the semi-annual period. For the period March 13, 1997 to March 31, 1997,
expense ratio was 1.00%.
</FN>
</TABLE>
<PAGE>
<TABLE>
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.
<CAPTION>
Tax-Free Tax-Free Tax-Free
Money Money Money
Market Market Market
Fund Fund Fund
---- ---- ----
1997(a) 1996(b) 1995(c)
<S> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning .... $ 1.00 $ 1.00 $ 1.00
Income from investment
Operations:
Net investment income .... 0.01 0.02 0.00
Net realized and unrealized
gain (loss) on investments 0.00 0.00 0.00
---- ---- ----
Total from investment income .... 0.01 0.02 0.00
Less distributions;
Dividends from net
investment income ..... (0.01) (0.02) (0.002)
----- ----- ------
Total from distributions ........ (0.01) (0.02) (0.002)
----- ----- ------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00
====== ====== ======
TOTAL RETURN (%)(f)............. 2.35(d) 1.96(d) (e)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period 7,240,486 7,334,110 100
Ratio of expenses to
average net assets .... 1.60% 1.82% 0.00%
Ratio of expenses (after
reimbursement) to
average net assets .... 1.34% 1.62% 0.00%
Ratio of net investment
income to average net assets 1.61% 2.09% 0.00%
Ratio of net investment
income (after reimbursement)
to average net assets 1.87% 2.29% 0.00%
Portfolio turnover ........ 0.00% 0.00% 0.00%
Average commission rate paid $0.0000 $0.0000 $---
<FN>
(a) For the Six Months Ended March 31, 1997.
(b) For the Year Ended September 30, 1996.
(c) For the Period June 2, 1995 (commencement of operations) to September 30, 1995.
(d) Annualized Return.
(e) Investment in accordance with objective had not commenced at this time.
(f) Total return would have been lower had certain expenses not been reduced during the periods
shown (see Note 3).
</FN>
</TABLE>
<PAGE>
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 Laidlaw
Fund, The Asset Allocation Fund, The Taxable Fixed Income Fund, The First
Lexington Balanced 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 Laidlaw Fund, The Asset Allocation Fund and The
First Lexington Balanced Fund are paid quarterly.
Dividends, if any, from net investment income for The Taxable 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.
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 (seed capital) prior to these
organizational costs and initial registration fees being fully amortized, the
redemption proceeds will be reduced by a pro-rata 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 March 31,
1997, the unamortized balance in each portfolio were as follows:
<TABLE>
<CAPTION>
Portfolio Unamortized Balance Portfolio Unamortized Balance
- --------- ------------------- --------- -------------------
<S> <C> <C> <C>
Starwood Strategic $2,692.00 Aggressive Growth 2,692.00
Laidlaw 2,692.00 Asset Allocation 2,692.00
Taxable Fixed Income 2,692.00 First Lexington Balanced 2,692.00
Taxable Money Market 2,701.00 Tax-Free Money Market 2,701.00
</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 counterparty to
allow the counterparty to repurchase the financial contract at a specific date
and price, thereby determining the yield during the Portfolio'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, Fiduciary Counsel, Inc., and
Health Financial, Inc. 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%
Laidlaw .75% Asset Allocation .75%
Taxable Fixed Income .50% First Lexington Balanced .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, Fiduciary Counsel, Inc. to serve as sub-adviser to The
Laidlaw Fund, The Taxable Fixed Income Fund, The Taxable Money Market Fund, and
The Tax-Free Money Market Fund, and Health Financial, Inc. to serve as
sub-adviser to The First Lexington Balanced Fund. Each sub-adviser receives
annual investment management fees, which are not paid directly by the
Portfolios.
As Sub-Adviser, Starwood Corporation, Fiduciary Counsel, Inc., and Health
Financial, Inc. is entitled to an annual fee, paid by the Adviser, for its
services in managing the Funds. 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 Starwood Strategic 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 Laidlaw 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 First Lexington Balanced Fund 0.40% of net assets up to $250 million;
0.35% of next $250 million of net assets;
0.30% 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 First Lexington Balanced Fund, 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 First Lexington Balanced Fund is
composed of $1,060 of expenses that were incurred since the fund commenced
investing in accordance with its objective on March 13, 1997. This is the
necessary reimbursement to maintain a 1% expense ratio for the fund. The
receivable from the Adviser for the remaining funds were incurred from February
1, 1997 through March 31, 1997. These reimbursements were necessary to maintain
the appropriate expense ratios.
The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Acts 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 six months ending March 31, 1997, purchases and sales of investment
securities, excluding short-term investments were as follows:
Purchases Sales
--------- -----
The Starwood Strategic Fund $ 546,117 $ 444,104
The Aggressive Growth Fund 57,276 195,000
The Laidlaw Fund ---- 427,092
The Asset Allocation Fund 71,440 133,500
The First Lexington Balanced Fund 179,500 ----
The Taxable Fixed Income Fund ---- ----
Note 5- Subsequent Events
On December 20, 1996, The Fiduciary Value Fund changed its name to The Laidlaw
Fund and acquired the assets of The Laidlaw Covenant Fund. The acquisition
consisted of the transfer of all assets and liabilities of The Laidlaw Covenant
Fund in exchange for shares of the Fiduciary Value Fund and the distribution of
such shares to the shareholders of The Laidlaw Covenant Fund in liquidation of
The Laidlaw Covenant Fund.
On February 1, 1997, The Municipal Fixed Income Fund changed its name to The
First Lexington Balanced Fund. On March 6, 1997, The First Lexington Balanced
Fund exercised a 1 for 20 reverse stock split.
SHAREHOLDER CONSENTS
- --------------------
On December 19, 1996, all of the 28,669.815 outstanding shares of The Fiduciary
Value Fund authorized the following changes, effective December 20, 1996:
1) The stated intention of the sub-adviser to invest in socially
conscious companies was approved.
2) The sub-adviser was authorized to enter into a consulting agreement
with Laidlaw Holdings Asset Management, Inc. to assist the sub-adviser
in the selection of socially conscious companies.
3) The name of the fund was changed to The Laidlaw Fund.
These changes related to the merger of The Laidlaw Covenant Fund and The
Fiduciary Value Fund.
On January 15, 1997, all of the 23,444.155 outstanding shares of The Municipal
Fixed Income Fund authorized the following changes, effective February 1, 1997:
1) The investment objective of the fund was changed to long term
growth of capital and current income.
2) The fund was authorized to seek to achieve this objective by
investing principally in a diversified portfolio of other no load
mutual funds selected from six major financial asset classes.
3) The fund's fundamental policy requiring that at least 80% of the
fund's income from investments be exempt from federal regular
income tax or at least 80% of the fund's net assets be invested
in obligations exempt from federal regular income tax was
eliminated.
4) The name of the fund was changed to The First Lexington Balanced
Fund.
