Goldman Sachs Mid Cap Value Fund (GCMAX) N-14 Registration statement for investment companies business combination

Exhibit 17(w)

Investment Advisor
Signal Capital Management, Inc.
One Main Street
Evansville, Indiana 47708

Administrator and Transfer Agent
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, Ohio 43219

Distributor
BISYS Fund Services, Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219

Custodian
Huntington National Bank
7 Easton Oval
Columbus, Ohio 43219

Counsel
Dechert LLP
1775 I Street, NW
Washington, DC 20006

Independent Registered Public Accounting Firm
Ernst & Young LLP
1100 Huntington Center
41 South High Street
Columbus, Ohio 43215

This report is for the information of the shareholders of the Signal Funds. Its use in connection with any offering of the Funds’ shares is authorized only in case of concurrent or prior delivery of the Funds’ current prospectus.

Federal law requires the Funds, and each of its investment advisers, to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i)  upon request, by calling 800-468-0347, or (ii)  on the U.S. Securities and Exchange Commission’s web site at www.sec.gov.

Statement Regarding Availability of Quarterly Portfolio Schedule.

The Signal Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available upon request without charge.

Statement Regarding Availability of Proxy Voting Record.

Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-468-0347, and on the Commission’s website at http://www.sec.gov.

Semi-Annual Report
September 30, 2006

Shares of the Funds are not deposits or obligations of, or guaranteed or endorsed by, Old National Bancorp., and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency. Shares of the Funds involve investment risk, including possible loss of principal. Past performance is not indicative of future results.

SIGNAL FUNDS
Large Cap Growth Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal		Security
Amount ($)		Description	Value ($)
		Common Stocks — 97.1%
		Aerospace/Defense — 1.3%
	7,800	United Technologies Corp		494,130
		Air Freight & Logistics — 1.7%
	14,000	Expeditors International of Washington, Inc		624,120
		Applications Software — 1.5%
	15,100	Citrix Systems, Inc.*		546,771
		Banking — 5.9%
	20,000	Bank of America Corp.		1,071,400
	14,200	Zions Bancorp		1,133,302
				2,204,702
		Business Services — 3.7%
	11,000	Jacobs Engineering Group, Inc.*		822,030
	22,000	Staples, Inc		535,260
				1,357,290
		Communications Equipment — 5.1%
	47,700	Cisco Systems, Inc.*		1,097,100
	18,300	Harris Corp		814,167
				1,911,267
		Distiller & Vintners — 1.2%
	16,000	Constellation Brands, Inc.*		460,480
		Educational Services — 1.3%
	11,500	Bright Horizons Family Solutions Inc.*		479,895
		Electronics — 1.7%
	8,000	L-3 Communications Holdings, Inc.		626,640
		Finance - Investment Bankers and Brokers — 8.2%
	7,000	Franklin Resources, Inc.		740,250
	6,500	Goldman Sachs Group, Inc		1,099,605
	20,000	UBS AG-ADR		1,186,200
				3,026,055
		General Merchandise — 2.0%
	13,200	Target Corp		729,300
		Healthcare - Equipment — 1.9%
	14,000	Stryker Corp.		694,260

Shares or
Principal		Security
Amount ($)		Description	Value ($)
		Healthcare Services — 2.8%
	15,000	Caremark Rx, Inc		850,050
	3,000	Covance, Inc.*		199,140
				1,049,190
		Household Products — 1.8%
	17,000	Church & Dwight Co., Inc.		664,870
		Industrial Conglomerates — 1.1%
	12,000	General Electric Co		423,600
		Industrial Gases — 2.1%
	13,100	Praxair, Inc.		774,996
		Insurance - - Life — 3.4%
	22,500	MetLife, Inc.		1,275,300
		Insurance-Multi-Line — 2.9%
	4,500	American International Group, Inc.		298,170
	10,000	Wellpoint, Inc.*		770,500
				1,068,670
		Machinery - - Industrial — 2.8%
	10,400	Danaher Corp.		714,168
	7,200	Illinois Tool Works, Inc		323,280
				1,037,448
		Manufacturing - Machinery — 1.1%
	10,000	Thermo Electron Corp.*		393,300
		Oil & Gas - Integrated — 3.8%
	7,000	BP PLC - ADR		459,060
	14,300	Exxon Mobil Corp.		959,530
				1,418,590
		Oil & Gas Exploration Services — 5.5%
	23,000	Noble Energy, Inc.		1,048,570
	26,000	Smith International, Inc		1,008,800
				2,057,370
		Personal Products — 2.8%
	16,600	Procter & Gamble Co.		1,028,868

continued

1

SIGNAL FUNDS
Large Cap Growth Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal		Security
Amount ($)		Description	Value ($)
		Pharmaceuticals — 4.4%
	5,200	Barr Laboratories, Inc.*		270,088
	10,000	Johnson & Johnson		649,400
	12,500	Novartis AG — ADR		730,500
				1,649,988
		Prepackaged Software — 5.3%
	16,000	DST Systems, Inc.*		986,720
	20,700	Fiserv, Inc.*		974,763
				1,961,483
		Real Estate Investment Trusts — 2.3%
	15,000	Prologis Trust		855,900
		Retail - Computer/Electronics — 2.1%
	14,400	Best Buy Co., Inc.		771,264
		Retail - Drugs — 2.3%
	19,300	Walgreen Co.		856,727
		Retail - Restaurants — 1.9%
	18,000	McDonald’s Corp.		704,160
		Soft Drinks — 2.8%
	15,900	PepsiCo, Inc		1,037,634
		Systems Software — 3.4%
	19,000	Microsoft Corp.		519,270
	15,000	SAP AG — ADR		742,500
				1,261,770
		Transportation Services — 2.3%
	11,800	Burlington Northern Santa Fe Corp		866,592
		Utilities - - Electric — 3.6%
	8,400	Entergy Corp.		657,132
	15,200	FPL Group, Inc		684,000
				1,341,132
		Wireless Equipment — 1.1%
	16,700	Motorola, Inc.		417,500

Shares or
Principal		Security
Amount ($)		Description	Value ($)
		Total Common Stocks (cost - $28,120,704)		36,071,262
		Investment Companies - 2.4%
	898,955	Huntington Money Market Fund - Trust Class		898,955
		Total Investment Companies (cost - $898,955)		898,955
		Total Investments - 99.5% (cost - $29,019,658)		36,970,217

Percentages indicated are based on net assets of $37,128,169.

* Non-income producing securities.

ADR – American Depositary Receipt

See notes to financial statements.

2

SIGNAL FUNDS
Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date		Value ($)
		Corporate Bonds — 28.9%
		Aerospace/Defense — 0.8%
	750,000	General Dynamics Corp.	4.50%		8/15/10		733,266
		Banking — 6.5%
	500,000	Bank of America Corp.	5.38		6/15/14		502,152
	500,000	Credit Suisse First Boston USA, Inc.	4.63		1/15/08		496,356
	105,000	First Union National Bank, BKNT	5.80		12/1/08		106,541
	300,000	MBNA Bank	5.38		1/15/08		300,011
	500,000	MBNA Bank	6.13		3/1/13		521,515
	500,000	National City Corp.	4.50		3/15/10		487,903
	750,000	U.S. Bancorp	3.95		8/23/07		741,236
	1,000,000	Washington Mutual Bank	5.50		1/15/13		999,439
	1,000,000	Washington Mutual Bank	5.65		8/15/14		1,001,963
	500,000	Wells Fargo Co.	3.50		4/4/08		488,114
							5,645,230
		Brewery — 0.6%
	500,000	Anheuser Busch	4.70		4/15/12		489,068
		Computer Hardware — 0.7%
	500,000	Hewlett-Packard Co.	5.75		12/15/06		500,289
	100,000	International Business Machines Corp.	4.88		10/1/06		100,000
							600,289
		Department Stores — 0.8%
	750,000	Target Corp.	5.88		3/1/12		773,204
		Electric & Electronic Equipment — 1.5%
	1,300,000	General Electric Co.	5.00		2/1/13		1,285,311
		Financial Services — 10.6%
	500,000	American General Finance Corp.	4.00		3/15/11		473,904
	500,000	Associates Corp.	6.88		11/15/08		516,655
	500,000	Bear Stearns Co., Inc.	4.50		10/28/10		486,597
	500,000	Boeing Capital Corp.	5.80		1/15/13		516,060
	750,000	Countrywide Financial	4.25		12/19/07		740,852
	345,000	General Electric Capital Corp., MTN	6.13		2/22/11		357,944
	75,000	Goldman Sachs Group, Inc.	6.88		1/15/11		79,490
	500,000	Goldman Sachs Group, Inc.	5.70		9/1/12		508,504
	400,000	Goldman Sachs Group, Inc.	5.15		1/15/14		391,069
	250,000	Household Finance Corp.	8.00		7/15/10		273,118
	500,000	Household Finance Corp.	4.75		7/15/13		482,926
	20,000	J.P. Morgan & Co., Inc.	5.75		10/15/08		20,167
	155,000	J.P. Morgan & Co., Inc., MTN	6.00		1/15/09		157,285
	500,000	J.P. Morgan Chase & Co.	5.75		1/2/13		511,308
	500,000	J.P. Morgan Chase & Co.	5.25		5/1/15		491,522

continued

3

SIGNAL FUNDS
Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
	395,000	J.P. Morgan Chase Bank	6.13	11/1/08	403,302
	500,000	Morgan Stanley	3.63	4/1/08	488,421
	400,000	Morgan Stanley	4.25	5/15/10	386,808
	1,000,000	Prudential Financial, Inc.	4.50	7/15/13	948,061
	500,000	SLM Corp.	5.38	1/15/13	498,688
	500,000	SLM Corp.	5.38	5/15/14	496,123
					9,228,804
		Food Products & Services — 0.5%
	140,000	Campbell Soup Co.	6.90	10/15/06	140,060
	300,000	Kraft Foods, Inc.	4.00	10/1/08	292,888
					432,948
		Insurance — 1.1%
	1,000,000	Everest Reinsurance Holding	5.40	10/15/14	975,075
		Insurance - Life — 0.6%
	513,000	Lincoln National Corp	6.50	3/15/08	521,229
		Investment Management and Advisory Services — 0.6%
	500,000	FMR Corp.*	4.75	3/1/13	485,811
		Medical - Drugs — 0.9%
	800,000	Bristol-Meyers Squibb Co.	5.75	10/1/11	814,906
		Real Estate Operation/Development — 0.4%
350,000		EOP Operating Limited Partnership	4.75	3/15/14	331,062
		Restaurants — 1.2%
	800,000	Darden Restaurants	4.88	8/15/10	783,231
	280,000	McDonald’s Corp.	6.00	4/15/11	288,601
					1,071,832
		Retail — 0.2%
	200,000	Sherwin-Williams Co.	6.85	2/1/07	200,664
		Utilities - Electric — 1.9%
	950,000	National Rural Utilities	3.25	10/1/07	931,699
	200,000	Tennessee Valley Authority, Series A	5.63	1/18/11	204,995
	500,000	Union Electric Co.	6.75	5/1/08	509,890
					1,646,584
		Total Corporate Bonds (cost - $25,674,372)			25,235,283

continued

4

SIGNAL FUNDS
Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
		U.S. Government Agencies — 60.5%
	400,000	Fannie Mae	7.13	3/15/07	403,188
	1,000,000	Fannie Mae	3.63	7/27/07	987,426
	1,500,000	Fannie Mae	4.30	5/5/08	1,484,154
	1,000,000	Fannie Mae	4.00	9/2/08	980,246
	250,000	Fannie Mae	5.25	1/15/09	251,581
	500,000	Fannie Mae, Callable 11/30/07 @ 100	4.00	11/30/09	486,427
	200,000	Fannie Mae	4.25	7/28/10	194,810
	150,000	Fannie Mae	6.25	2/1/11	156,831
	1,000,000	Fannie Mae	4.55	3/9/11	978,478
	750,000	Fannie Mae	5.38	11/15/11	766,081
	100,000	Fannie Mae	5.25	8/1/12	100,523
	750,000	Fannie Mae	6.00	12/14/12	749,816
	300,000	Fannie Mae	5.00	4/15/13	294,405
	500,000	Fannie Mae	4.63	10/15/14	489,000
	500,000	Fannie Mae	5.31	11/3/14	492,230
	467,789	Fannie Mae	5.00	6/25/16	459,543
	800,000	Fannie Mae, Callable 4/26/10 @ 100	5.00	4/26/17	774,592
	901,778	Fannie Mae	5.68	2/25/20	887,842
	456,323	Fannie Mae	4.50	6/25/33	436,561
	324,877	Fannie Mae	5.00	3/25/34	320,283
	2,000,000	Fed Farm Credit Bank	5.20	3/21/16	2,032,218
	500,000	Federal Farm Credit Bank, MTN	5.87	9/2/08	507,819
	750,000	Federal Farm Credit Bank	5.20	2/24/10	745,444
	420,000	Federal Farm Credit Bank	5.81	1/10/11	433,602
	750,000	Federal Farm Credit Bank, Callable 11/29/06 @ 100	4.65	11/29/11	733,180
	250,000	Federal Farm Credit Bank	5.22	10/20/14	245,292
	500,000	Federal Farm Credit Bank	5.63	10/19/20	490,982
	285,000	Federal Home Loan Bank, Series TV06	4.88	11/15/06	284,823
	800,000	Federal Home Loan Bank	4.50	6/6/08	792,393
	500,000	Federal Home Loan Bank	4.05	8/13/08	491,341
	1,065,000	Federal Home Loan Bank, Series 100	5.80	9/2/08	1,077,980
	325,000	Federal Home Loan Bank, Series 8D08	5.25	11/14/08	326,385
	875,000	Federal Home Loan Bank	5.49	12/22/08	881,350
	400,000	Federal Home Loan Bank	4.28	10/30/09	391,413
	200,000	Federal Home Loan Bank, Series 5	4.00	3/30/10	198,392
	1,250,000	Federal Home Loan Bank, Series 1	4.75	3/30/10	1,232,611
	550,000	Federal Home Loan Bank	4.00	4/22/10	533,120
	1,500,000	Federal Home Loan Bank	5.00	8/9/10	1,479,660
	750,000	Federal Home Loan Bank	5.20	10/28/10	744,339
	500,000	Federal Home Loan Bank	5.00	2/24/11	498,185
	100,000	Federal Home Loan Bank, Series 1N11	6.00	5/13/11	104,513
	1,000,000	Federal Home Loan Bank	5.00	8/3/11	986,382
	1,000,000	Federal Home Loan Bank, Callable 2/16/07 @ 100	4.75	2/16/12	976,861
	500,000	Federal Home Loan Bank	5.00	2/21/12	492,514
	1,200,000	Federal Home Loan Bank	5.25	5/3/12	1,186,717
	200,000	Federal Home Loan Bank	4.50	10/29/13	197,461

continued

5

SIGNAL FUNDS
Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
	500,000	Federal Home Loan Bank	4.25	1/30/15	495,653
	1,000,000	Federal Home Loan Bank	5.74	4/20/15	992,586
	500,000	Federal Home Loan Bank	4.00	6/26/18	483,739
	500,000	Federal Home Loan Bank	5.65	3/22/19	490,440
	500,000	Federal Home Loan Bank, Callable 11/4/09 @ 100	5.30	11/4/19	484,560
	500,000	Federal Home Loan Bank, Callable 12/27/06 @ 100	5.85	12/27/19	492,478
	1,000,000	Federal Home Loan Mortgage Corp.	4.13	8/1/18	981,216
	200,000	Freddie Mac	3.25	3/14/08	195,106
	50,000	Freddie Mac	5.75	4/15/08	50,548
	750,000	Freddie Mac	4.85	12/1/09	742,667
	117,056	Freddie Mac	3.75	4/15/11	116,713
	1,000,000	Freddie Mac	6.25	3/5/12	1,003,782
	750,000	Freddie Mac, Callable 11/5/07 @ 100	5.25	11/5/12	742,734
	1,500,000	Freddie Mac	4.80	7/30/13	1,448,567
	500,000	Freddie Mac	5.13	8/6/13	491,995
	1,500,000	Freddie Mac, Callable 1/30/07 @ 100	5.00	1/30/14	1,485,422
	895,000	Freddie Mac	4.00	8/26/14	887,319
	1,500,000	Freddie Mac	4.00	10/14/14	1,478,823
	500,000	Freddie Mac, Callable 10/27/06 @ 100	5.00	10/27/14	495,012
	750,000	Freddie Mac	5.00	11/13/14	741,485
	1,000,000	Freddie Mac	5.40	9/22/15	983,555
	2,000,000	Freddie Mac, Callable	5.00	2/13/18	1,955,919
	500,000	Freddie Mac, Callable	4.50	7/15/18	479,951
	496,000	Freddie Mac, Callable	5.00	7/30/18	474,958
	1,500,000	Freddie Mac	5.00	1/15/19	1,488,656
	725,000	Freddie Mac	5.00	6/11/21	681,997
	356,907	Freddie Mac	4.75	3/15/22	350,045
	1,458,800	Freddie Mac	5.00	8/15/27	1,443,401
	558,291	Freddie Mac, Series 2664	5.00	4/15/30	552,610
	265,825	Freddie Mac	5.50	10/15/31	266,178
		Total U.S. Government Agencies (cost - $53,262,811)			52,737,109
		U.S. Treasury Securities — 9.7%
	1,500,000	U.S. Treasury Notes	4.50	2/15/09	1,494,668
	3,000,000	U.S. Treasury Notes	3.63	1/15/10	2,911,055
	150,000	U.S. Treasury Notes	3.50	2/15/10	144,850
	500,000	U.S. Treasury Notes	4.00	3/15/10	490,508
	500,000	U.S. Treasury Notes	4.50	2/28/11	498,125
	1,750,000	U.S. Treasury Notes	4.00	11/15/12	1,695,039
	200,000	U.S. Treasury Notes	4.75	5/15/14	201,695
	750,000	U.S. Treasury Notes	4.25	11/15/14	731,426
	250,000	U.S. Treasury Notes	1.63	1/15/15	253,428
		Total U.S. Treasury Securities (cost - $8,598,328)			8,420,794

continued

6

SIGNAL FUNDS
Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
		Investment Companies — 0.1%
	134,140	Huntington Money Market Fund - Trust Class			134,140
		Total Investment Companies (cost - $134,140)			134,140
		Total Investments – 99.2% (cost - $87,669,651)			86,527,326

Percentages indicated are based on net assets of $87,216,032
*	144A security is restricted as to resale to institutional investors. These securities have been deemed liquid under guidelines established by the Board of Trustees.
BKNT – Bank Note
MTN – Medium Term Note

See notes to financial statements.

7

SIGNAL FUNDS
Tax-Exempt Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
		Municipal Bonds — 98.5%
		Alabama — 1.1%
	210,000	Daphne Alabama, GO, Callable 2/1/13 @ 100, Insured by: AMBAC	4.00%	8/1/14	213,041
		California — 1.3%
	250,000	La Mirada California Redevelopment Agency, Callable 8/15/14 @ 100, Insured by: FSA	4.25	8/15/19	253,498
		Florida — 1.9%
	380,000	Hillsborough County Florida Individual Development Authority	5.00	10/1/07	384,210
		Illinois — 2.6%
	20,000	Du Page County Illinois High School District	5.05	12/1/14	20,330
	180,000	Du Page County Illinois High School District	5.05	12/1/14	183,091
	300,000	Northlake Illinois, Series A, GO, Callable 12/1/08 @ 100, Insured by: AMBAC	5.00	6/1/14	308,571
					511,992
		Indiana — 56.6%
	200,000	Anderson Indiana School Building Corp., Insured by: FSA	4.00	7/15/15	203,102
	260,000	Bloomington Indiana Municipal Facilities Corp., Callable 2/1/08 @ 101	4.80	8/1/12	266,061
	200,000	Carmel Indiana Redevelopment Authority, Insured by: MBIA	4.25	8/1/11	205,524
	380,000	Center Grove Indiana Building Corp., Insured by: FGIC	3.50	1/15/11	378,190
	150,000	Clarksville Indiana High School Building Corp., Callable 7/15/08 @ 101, Insured by: MBIA	5.00	7/15/14	154,964
	225,000	Cloverdale Indiana Multi-School Building Corp., Callable 1/15/08 @ 102, Insured by: MBIA	4.95	1/15/11	233,372
	200,000	Crown Point Indiana Multi-School Building Corp., Callable 7/15/09 @ 101, Insured by: MBIA	4.80	1/15/14	207,558
	295,000	Delaware County Indiana Edit Corp., Callable 12/1/07 @ 101, Insured by: MBIA	5.00	12/1/12	302,528
	125,000	Eagle Union Middle School Building Corp. Indiana, Callable 7/5/11 @ 100, Insured by: AMBAC	4.85	7/5/15	130,706
	300,000	East Washington Indiana Multi School Building Corp., Insured by : MBIA	3.90	7/15/14	303,000
	295,000	Elkhart Indiana Community Schools, Callable 7/15/14	4.30	7/15/18	299,865
	100,000	Fall Creek Indiana Regulatory Waste District, Callable 9/1/10 @ 100, Insured by: MBIA	4.70	3/1/13	103,824
	165,000	Fort Wayne Indiana Stormwater Managemet District Revenue, Insured by : MBIA	4.00	8/1/13	167,955
	260,000	Greencastle Indiana Multi-School Building Corp., Callable 7/10/12 @100, Insured by: FGIC	4.10	1/10/13	265,343
	300,000	Greencastle Indiana Waterworks Revenue, Callable 1/1/12 @ 100, Insured by: MBIA	4.25	7/1/13	307,782
	275,000	Indiana Bank Revenue, Insured by: MBIA	4.00	4/1/09	277,926
	290,000	Indiana Bank Revenue, Series A, Callable 2/1/09 @ 102, Insured by: FSA	4.60	2/1/13	299,744
	200,000	Indiana Bank Revenue	4.80	2/1/13	204,872
	65,000	Indiana Bank Revenue	4.80	2/1/13	66,711
	70,000	Indiana Health Facilities Financing Authority, Callable 8/15/07 @ 102, Insured by: RADIAN	5.50	2/15/10	72,537
	325,000	Indiana State Educatonal Facilities Authority, Callable 10/15/08 @ 101	4.95	10/15/12	335,439
	300,000	Indiana State Office Building Community Facilities, Series A, Callable 7/1/08 @ 101	4.70	7/1/11	308,019

continued

8

SIGNAL FUNDS
Tax-Exempt Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
	100,000	Johnson County Indiana, GO, Insured by: FSA	4.10	7/15/07	100,438
	265,000	La Porte Indiana Multi School Building Corp., Insured by: FSA	4.00	1/15/10	268,487
	305,000	Lafayette Indiana Redevelopment Authority, Callable 2/1/13 @ 100	3.75	8/1/13	304,988
	75,000	Marion County Indiana Convention and Recreational Facilities Authority, Series A, Callable 6/1/08 @ 101	5.00	6/1/12	77,428
	275,000	Mitchell Indiana Multi-School Building Corp.	4.65	7/5/13	290,133
	300,000	Montgomery County Indiana Jail Facility Building Corp., Callable 1/15/15 @ 100, Insured by: FSA	4.00	7/15/16	301,248
	150,000	Mt. Vernon of Hancock County Indiana Multi-School Building Corp., Series B, Callable 7/15/11 @ 100, Insured by: AMBAC	4.70	1/15/12	156,845
	200,000	Munster Indiana School Building Corp., Callable 7/5/08 @ 101, Insured by: FSA	4.60	7/5/10	205,512
	265,000	Nobelsville Indiana Redevelopment Authority	4.00	8/1/08	267,173
	400,000	North Montgomery Indiana High School Building Corp., Callable 1/15/11 @ 100, Insured by: FGIC	5.05	7/15/15	420,203
	100,000	Northwest Allen County Indiana Middle School Building Corp., Callable 1/15/09 @ 101, Insured by: MBIA	4.75	1/15/12	103,591
	200,000	Northwest Allen County Indiana Middle School Building Corp., Callable 1/15/09 @ 101, Insured by: MBIA	4.90	1/15/14	207,834
	240,000	Perry Township Indiana Multi-School Building Corp., Callable 7/15/10 @101, Insured by: FGIC	4.63	1/15/15	249,497
	300,000	Porter County Indiana Jail Building Corp., Callable 7/10/11 @ 100, Insured by: FSA	5.00	7/10/16	315,009
	275,000	Princeton Indiana Sewer Works Revenue, Callable 5/1/09 @ 101	4.50	5/1/13	275,894
	200,000	Purdue University Indiana, University Revenue	4.00	7/1/12	203,380
	50,000	Purdue University Indiana Certificates Participation, Callable 7/1/08 @ 100	4.50	7/1/09	50,709
	250,000	Rochester Indiana Community School Building Corp., Callable 7/15/08 @ 102, Insured by: AMBAC	5.00	7/15/13	260,840
	200,000	South Bend Indiana Community School Building Corp., Callable 1/1/10 @ 101, Insured by: FSA	4.60	7/1/13	206,598
	225,000	South Bend Indiana Community School Building Corp., Callable 1/1/10 @ 101, Insured by: FSA	5.10	7/1/17	236,594
	400,000	Sunman-Dearbon Indiana High School Building Corp., Insured by: MBIA	4.00	7/15/12	407,219
	125,000	Terre Haute Indiana San District, GO, Callable 1/1/07 @ 102, Insured by: AMBAC	4.60	7/1/10	127,663
	300,000	Terre Haute Indiana San District, Callable 1/1/15 @ 100, Insured by: AMBAC	4.00	7/1/17	301,032
	200,000	Vinton-Tecumseh Indiana School Building Corp., Callable 1/5/08 @ 101, Insured by: SAW	5.00	7/5/13	205,376
	300,000	Warren Township Indiana School Building Corp., Callable 7/5/08 @ 101, Insured by: FSA	5.00	7/5/14	309,822
	275,000	Whitley County Indiana Middle School Building Corp., Callable 7/10/08 @ 101, Insured by: FSA	4.80	1/10/11	283,550
					11,232,085

continued

9

SIGNAL FUNDS
Tax-Exempt Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
		Kansas — 1.2%
	250,000	Kansas State Development Finance Authority Revenue	3.25	11/1/09	248,118
		Kentucky — 2.2%
	250,000	Jessamine County Kentucky School District, Insured by: AMBAC	4.00	1/1/14	254,715
	185,000	Kentucky Rural Water Financial Corp., Series C, Callable 2/01/12 @ 101, Insured by: MBIA	3.88	2/1/14	187,054
					441,769
		Michigan — 5.3%
	250,000	Green Oak Township Michigan — Sewer, GO, Callable 5/1/12 @ 100, Insured by: MBIA	4.00	5/1/17	251,610
	300,000	Macomb Township Michigan Building Authority, GO, Callable 4/1/11 @ 100, Insured by: AMBAC	4.75	4/1/16	314,697
	150,000	Michigan Higher Education Facilities Authority Revenue, Callable 12/1/12 @ 100	5.00	12/1/20	155,867
	320,000	Warren Michigan Downtown Development, GO, Insured by: MBIA	4.00	10/1/14	325,923
					1,048,097
		Missouri — 2.6%
	200,000	Creve Coeur Missouri, SO	3.50	1/1/13	198,332
	300,000	Jefferson County Missouri School District, GO, Callable 3/1/14 @ 100, Insured by: MBIA	4.35	3/1/16	310,950
					509,282
		Nevada — 1.3%
	250,000	University of Nevada Community College, Series A, Callable 7/1/11 @ 100, Insured by: FGIC	4.45	7/1/12	257,745
		New York — 2.2%
	400,000	New York General Obligation Unlimited	5.00	8/1/18	431,200
		North Carolina — 1.5%
	300,000	Davie County NC	3.75	6/1/11	301,392
		North Dakota — 1.5%
	300,000	North Dakota State Building Authority Lease Revenue, Callable 12/1/13 @ 100	3.70	12/1/15	297,228
		Ohio — 1.3%
	250,000	Akron Ohio Package Facility Project, Series A, Insured by: AMBAC	3.50	12/1/10	249,705
		Pennsylvania — 0.8%
	150,000	Pennsylvania State Higher Educational Facilities Authority College & University Revenue, Callable 7/1/11 @ 100, Insured by: ASST GTY	5.38	7/1/23	157,892

continued

10

SIGNAL FUNDS
Tax-Exempt Income Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
		Texas — 2.9%
	350,000	Brownsville Texas, GO, Callable 2/15/14 @ 100, Insured by: AMBAC	4.00	2/15/17	350,650
	225,000	Keller Texas, Insured by: MBIA	3.75	2/15/11	226,253
					576,903
		Utah — 2.5%
	200,000	South Davis Recreation District Utah, Callable 1/1/15 @ 100, Insured by: XLCA	4.38	1/1/20	203,102
	300,000	Utah State Building Ownership Authority Lease Revenue	3.25	5/15/09	296,178
					499,280
		Virginia — 1.4%
	285,000	Chesterfield County VA Certificates Participation	4.25	11/1/06	285,131
		Washington — 4.6%
	300,000	Seattle Washington Municipal Light and Power Revenue, Insured by: FSA	3.25	8/1/11	292,716
	300,000	Washington State, Series 2003A, GO, Callable 7/1/12 @ 100	5.00	7/1/14	319,512
	300,000	Washington State, Callable 4/1/14 @ 100, Insured by: MBIA	4.25	10/1/15	308,532
					920,760
		Wisconsin — 3.8%
	400,000	Chilton Wisconsin School District, Callable 4/1/12, Insured by: FGIC	4.00	4/1/13	404,919
	50,000	Elmbrook Wisconsin School District, GO, Callable 4/1/12 @ 100	4.13	4/1/15	50,477
	295,000	Green Bay Wisconsin Area Public School District, Insured by: FGIC, Series B	3.38	4/1/10	293,127
					748,523
		Total Municipal Bonds (cost - $19,260,103)			19,567,851
		Money Market — 1.0%
	200,948	Fidelity Institutional Tax-Exempt Portfolio			200,948
		Total Money Market (cost - $200,948)			200,948
		Total Investments – 99.5% (cost - $19,461,051)			19,768,799

Percentages indicated are based on net assets of $19,858,800.

AMBAC – AMBAC Indemnity Corp.
ASST GTY – Asset Guaranty
FGIC – Financial Guaranty Insurance Co.
FSA – Financial Security Assurance, Inc.
GO – General Obligation
MBIA – Municipal Bond Insurance Assoc.
RADIAN – RADIAN Guaranty, Inc.
SAW – State Aid Withholding
SO – Special Obligation
XLCA – XL Capital Assurance, Inc.

See notes to financial statements.

11

SIGNAL FUNDS
Money Market Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
		Asset Backed Securities — 27.0%
		Finance Services — 27.0%
	1,000,000	Amsterdam Funding* (a)(b)	5.26%	10/5/06	999,416
	1,250,000	Barton Capital, LLC. *	5.26	11/6/06	1,243,425
	2,250,000	Fairway Finance Co., LLC. * (a)(b)	5.26	12/13/06	2,226,001
	1,200,000	Fountain Square *	5.25	10/12/06	1,198,075
	1,149,000	Fountain Square *	5.26	10/13/06	1,146,985
	1,500,000	Grampian Funding, LLC. * (a)	5.37	10/25/06	1,494,630
	500,000	Grampian Funding, LLC. * (a)	5.09	10/16/06	498,940
	2,500,000	Kitty Hawk Funding * (a)	5.26	10/18/06	2,493,790
	2,500,000	Old Line Funding Corp. * (a)	5.26	10/12/06	2,495,982
	2,000,000	Sheffield Receivables *	5.26	11/2/06	1,990,649
	2,300,000	Stratford Receivables * (b)	5.28	10/6/06	2,298,313
	2,250,000	Thames Asset Global *	5.27	11/14/06	2,235,508
	2,300,000	Three Pillars Funding *	5.26	10/16/06	2,294,959
	2,500,000	Windmill Funding, Corp. * (a) (b)	5.26	10/5/06	2,498,539
		Total Asset Backed Securities (cost - $25,115,212)			25,115,212
		Certificates of Deposit — 16.0%
		Foreign Bank & Branches & Agencies — 7.7%
	500,000	BNP Paribas	5.47	10/24/06	500,027
	2,250,000	CIBC	5.32	12/13/06	2,250,000
	2,500,000	Societe Generale	5.25	11/27/06	2,479,218
	2,000,000	Toronto Dominion	5.33	11/8/06	2,000,000
					7,229,245
		National Banks, Commercial — 2.9%
	2,700,000	Wells Fargo Bank	5.27	10/25/06	2,700,000
		Security Brokers & Dealers — 5.4%
	1,500,000	Credit Suisse (a)(b)	5.31	11/20/06	1,500,010
	3,500,000	UBS Finance *	5.29	10/31/06	3,499,989
					4,999,999
		Total Certificates of Deposit (cost - $14,929,244)			14,929,244
		Commercial Paper — 28.6%
		Bank Holdings Companies — 7.4%
	2,250,000	Bank of America Corp. *	5.25	10/27/06	2,241,469
	3,700,000	Citigroup Funding *	5.25	10/19/06	3,690,287
	1,000,000	Greenwich Capital**	5.15	10/23/06	996,853
					6,928,609
		Foreign Bank & Branches & Agencies — 17.4%
	2,000,000	ABN AMRO *	5.25	11/6/06	1,989,500
	2,500,000	Barclays US Funding, LLC. *	5.31	10/10/06	2,496,681
	2,250,000	CBA DEL Finance *	5.36	10/6/06	2,248,325
	1,500,000	Deutsche Bank *	5.25	10/20/06	1,495,844
	2,500,000	Dexia DEL, LLC. *	5.26	10/10/06	2,496,706
	1,500,000	Dexia DEL, LLC. *	5.26	10/16/06	1,496,713
	2,500,000	HBOS Treasury Services *	5.25	11/9/06	2,485,592
	1,500,000	Societe Generale *	5.25	1/8/07	1,478,344
					16,187,705

continued

12

SIGNAL FUNDS
Money Market Fund

Schedule of Portfolio Investments
September 30, 2006
(Unaudited)

Shares or
Principal			Interest	Maturity
Amount ($)		Security Description	Rate	Date	Value ($)
		Personal Credit Institutions — 3.8%
	3,500,000	General Electric Cap Corp. *	5.26	10/17/06	3,491,818
		Total Commercial Paper (cost - $26,608,132)			26,608,132
		U.S. Government Agencies — 12.9%
	2,000,000	Federal Farm Credit Bank**	5.05	1/22/07	2,000,483
	1,000,000	Federal Home Loan Bank	4.38	10/26/06	1,000,000
	500,000	Federal Home Loan Bank	5.44	8/16/07	500,000
	500,000	Federal Home Loan Bank	5.50	8/21/07	500,000
	1,250,000	Federal Home Loan Bank**	4.58	2/22/07	1,250,000
	1,250,000	Federal Home Loan Bank**	4.48	3/2/07	1,250,000
	1,500,000	Federal Home Loan Bank**	4.53	5/4/07	1,498,073
	1,000,000	Federal Home Loan Bank**	5.05	5/15/07	999,981
	1,100,000	Federal Home Loan Mortgage Corp.	4.75	1/22/07	1,100,000
	900,000	Federal Home Loan Mortgage Corp.	4.80	2/20/07	900,000
	1,000,000	Federal National Mortgage Association**	5.26	12/22/06	999,993
		Total U.S. Government Agencies (cost - $11,998,530)			11,998,530
		Investment Companies — 2.8%
	940,390	BlackRock Provident Institutional Temp Fund			940,390
	51,662	Goldman Sachs Financial Square Prime Obligations Fund			51,662
	376	Merrill Lynch Premiere Institutional Fund			376
	1,648,040	Morgan Stanley Liquidity Prime Fund			1,648,040
		Total Investment Companies (cost - $2,640,468)			2,640,468
		Repurchase Agreements — 12.9%
		Security Broker & Dealers — 12.9%
	4,000,000	Merrill Lynch (Dated 09/29/06, due 10/02/06, proceeds at maturity $4,001,667, fully collateralized by U.S.Treasury Note 3.0%, due 07/15/12, valued at $4,070,310)			4,000,000
	4,000,000	Morgan Stanley (Dated 09/29/06, due 10/02/06, proceeds at maturity $4,001,640, fully collateralized by U.S.Treasury Note 6.5%, due 02/15/10, valued at $4,032,990)			4,000,000
	4,000,000	Wachovia (Dated 09/29/06, due 10/02/06, proceeds at maturity $4,001,670, fully collateralized by U.S.Treasury Note 11.25%, due 02/15/15, valued at $4,003,601)			4,000,000
		Total Repurchase Agreements (cost - $12,000,000)			12,000,000
		Total Investments - 100.2% (cost - $93,291,586)***			93,291,586

Percentages indicated are based on net assets of $93,024,622.

*	Discount Note securities. The rate reflected on the Schedule of Portfolio Investment is the effective rate of the security.
**	Variable rate securities having liquidity agreements. The interest rate, which will change periodically, is based upon an index of market rates. The rate reflect on the Schedule of Portfolio Investments is the rate in effect at September 30, 2006.
***	Cost for federal income tax purposes is the same.
(a)	4-2 security exempt from registration under the Securities Act of 1933. The securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(b)	Security exempt from registration under Rule 144a of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

13

SIGNAL FUNDS

Statements of Assets and Liabilities
September 30, 2006
(Unaudited)

	Large Cap						Tax-Exempt
	Growth			Income			Income		Money Market
	Fund			Fund			Fund		Fund
Assets:
Investments, at value (Cost $29,019,658; $87,669,651;
$19,461,051; and $81,291,586, respectively)		$36,970,217			$86,527,326			$19,768,799		$81,291,586
Repurchase agreements, at cost		—			—			—		12,000,000
Total Investments		36,970,217			86,527,326			19,768,799		93,291,586
Cash		—			—			—		17,474
Interest and dividends receivable		23,947			1,001,155			224,114		153,228
Receivable for capital shares issued		15,171			74,710			1,418		—
Receivable for investments sold		167,995			—			—		—
Prepaid expenses and other assets		5,285			3,742			1,428		3,915
Total Assets		37,182,615			87,606,933			19,995,759		93,466,203
Liabilities:
Distributions payable		9,907			337,301			52,953		400,032
Payable for capital shares redeemed		2,620			4,619			68,740		—
Accrued expenses and other payables:
Investment advisory fees		18,083			20,259			1,645		4,184
Administration fees		1,019			2,460			521		3,140
Distribution fees		143			56			31		—
Transfer agent fees		6,134			5,785			4,452		4,636
Trustee fees		802			547			185		1,003
Chief Compliance Officer fees		74			679			65		112
Other liabilities		15,664			19,195			8,367		28,474
Total Liabilities		54,446			390,901			136,959		441,581
Net Assets:		$37,128,169			$87,216,032			$19,858,800		$93,024,622
Composition of Net Assets:
Capital		25,081,401			88,803,757			19,522,609		93,024,753
Distributions in excess of net investment income		(668	)		18,595			—		(2	)
Accumulated net realized gains (losses) on investment transactions		4,096,877			(463,995	)		28,443		(129	)
Net unrealized appreciation (depreciation) on investment transactions		7,950,559			(1,142,325	)		307,748		—
Net Assets		$37,128,169			$87,216,032			$19,858,800		$93,024,622
Class A Shares:
Net assets		$675,794			$268,372			$136,960		—
Shares outstanding ($0.001 par value)		57,141			27,777			13,943		—
Net Asset Value and Redemption Price per share		$11.83			$9.66			$9.82		—
Maximum Sales Load		4.75%			3.25%			3.25%		—
Maximum Offering Price per share (100%/(100%—maximum sales charge) of net asset value adjusted to the nearest cent)		$12.42			$9.98			$10.15		—
Class I Shares:
Net assets		$36,452,375			$86,947,660			$19,721,840		$93,024,622
Shares outstanding ($0.001 par value)		3,055,629			8,998,416			2,007,688		93,029,325
Net Asset Value, Offering Price, and Redemption Price per share		$11.93			$9.66			$9.82		$1.00

See notes to financial statements.

14

SIGNAL FUNDS

Statements of Operations
For the period ended September 30, 2006
(Unaudited)

	Large Cap						Tax-Exempt
	Growth			Income			Income			Money Market
	Fund			Fund			Fund			Fund
Investment Income:
Interest		$4,563			$2,390,542			$418,388			$2,409,550
Dividends		231,967			58,333			6,007			150,439
Total Investment Income		236,530			2,448,875			424,395			2,559,989
Expenses:
Investment advisory		147,427			246,913			50,430			50,189
Administration		37,348			93,827			19,163			120,453
Distribution (Class A)		882			355			180			—
Fund accounting		28,197			37,524			33,845			21,221
Custodian		3,149			6,554			1,453			23,570
Transfer agent		21,255			19,481			14,803			15,880
Trustee		689			2,863			524			2,355
Chief Compliance Officer		1,438			3,380			757			3,733
Other		19,110			39,748			10,118			40,303
Total expenses before fee reductions		259,495			450,645			131,273			277,704
Expenses voluntarily reduced by Investment Advisor		(39,314	)		(123,456	)		(40,344	)		(25,095	)
Net Expenses		220,181			327,189			90,929			252,609
Net Investment Income		16,349			2,121,686			333,466			2,307,380
Realized/Unrealized Gains (Losses) on Investments:
Net realized gains (losses) on investment transactions		1,234,587			(126,438	)		26,997			(13	)
Change in unrealized appreciation/depreciation on investments		(2,022,710	)		1,044,967			133,292			—
Net realized/unrealized gains (losses) on investments		(788,123	)		918,529			160,289			(13	)
Change in net assets resulting from operations		$(771,774	)		$3,040,215			$493,755			$2,307,367

See notes to financial statements.

15

SIGNAL FUNDS

Statements of Changes in Net Assets

	Large Cap Growth Fund						Income Fund
	Period Ended			Year Ended			Period Ended			Year Ended
	September 30,			March 31,			September 30,			March 31,
	2006			2006			2006			2006
	(Unaudited)						(Unaudited)
Operations:
Net investment income		$16,349			$35,062			$2,121,686			$3,979,572
Net realized gains (losses) on investment transactions		1,234,587			3,942,408			(126,438	)		(232,518	)
Change in unrealized appreciation/depreciation on investment transactions		(2,022,710	)		1,442,253			1,044,967			(1,672,828	)
Change in net assets from operations		(771,774	)		5,419,723			3,040,215			2,074,226
Distributions to Shareholders:
Class A:
From net investment income		—			(46	)		(5,732	)		(13,601	)
From net realized gain on investment		—			(40,847	)		—			—
Class B:
From net investment income		—			—			—			(269	)
From net realized gain on investment		—			—			—			—
Class I:
From net investment income		(17,017	)		(42,737	)		(2,105,460	)		(3,976,073	)
From net realized gain on investment		—			(2,414,054	)		—			—
Change in net assets from shareholder distributions		(17,017	)		(2,497,684	)		(2,111,192	)		(3,989,943	)
Change in net assets from capital share transactions		(1,078,746	)		(3,013,200	)		(11,840,954	)		2,021,021
Change in net assets		(1,867,537	)		(91,161	)		(10,911,931	)		105,304
Net Assets:
Beginning of period		38,995,706			39,086,867			98,127,963			98,022,659
End of period*		$37,128,169			$38,995,706			$87,216,032			$98,127,963
Capital Transactions:
Class A Shares
Proceeds from shares issued		$17,071			$291,268			$—			$102,698
Dividends reinvested		—			40,720			5,639			13,923
Cost of shares redeemed		(80,707	)		(213,464	)		(58,103	)		(109,706	)
Change in net assets from Class A capital transactions		($63,636	)		$118,524			($52,464	)		$6,915
Class B Shares
Proceeds from shares issued		$—			$—			$—			$—
Dividends reinvested		—			—			—			96
Cost of shares redeemed		—			(123,670	)		—			(28,549	)
Change in net assets from Class B capital transactions		—			($123,670	)		—			($28,453	)
Class I Shares
Proceeds from shares issued		$6,298,844			$13,486,131			$8,738,980			$24,607,646
Dividends reinvested		2,508			1,040,335			369,022			762,599
Cost of shares redeemed		(7,316,462	)		(17,534,520	)		(20,896,492	)		(23,327,686	)
Change in net assets from Class I capital transactions		($1,015,110	)		($3,008,054	)		($11,788,490	)		$2,042,559
Share Transactions:
Class A Shares
Issued		1,423			27,039			—			10,297
Reinvested		—			3,445			590			1,427
Redeemed		(6,843	)		(17,813	)		(6,097	)		(11,266	)
Net change		(5,420	)		12,671			(5,507	)		458
Class B Shares
Issued		—			—			—			—
Reinvested		—			—			—			10
Redeemed		—			(12,869	)		—			(2,792	)
Net change		—			(12,869	)		—			(2,782	)
Class I Shares
Issued		528,195			1,158,732			916,236			2,521,979
Reinvested		212			87,364			38,611			78,175
Redeemed		(612,590	)		(1,466,755	)		(2,172,635	)		(2,384,473	)
Net change		(84,183	)		(220,659	)		(1,217,788	)		215,681

* Includes accumulated (distributions in excess of) net investment income of $(668), $0, $18,595, and $8,101, respectively.

See notes to financial statements.

16

SIGNAL FUNDS

Statements of Changes in Net Assets

	Tax-exempt Income Fund						Money Market Fund
	Period Ended			Year Ended			Period Ended			Year Ended
	September 30,			March 31,			September 30,			March 31,
	2006			2006			2006			2006
	(Unaudited)						(Unaudited)
Operations:
Net investment income		$333,466			$746,370			$2,307,380			$3,043,118
Net realized gains (losses) on investment transactions		26,997			27,245			(13	)		(97	)
Change in unrealized appreciation/depreciation on investment transactions		133,292			(327,308	)		—			—
Change in net assets from operations		493,755			446,307			2,307,367			3,043,021
Distributions to Shareholders:
Class A:
From net investment income		(2,208	)		(4,872	)		—			—
From net realized gain on investment		—			(382	)		—			—
Class B:
From net investment income		—			(307	)		—			—
From net realized gain on investment		—			—			—			—
Class I:
From net investment income		(331,258	)		(741,191	)		(2,307,380	)		(3,043,273	)
From net realized gain on investment		—			(48,546	)		—			—
Change in net assets from shareholder distributions		(333,466	)		(795,298	)		(2,307,380	)		(3,043,273	)
Change in net assets from capital share transactions		(1,795,088	)		(59,906	)		(8,582,342	)		8,296,145
Change in net assets		(1,634,799	)		(408,897	)		(8,582,355	)		8,295,893
Net Assets:
Beginning of period		21,493,599			21,902,496			101,606,977			93,311,084
End of period*		$19,858,800			$21,493,599			$93,024,622			$101,606,977
Capital Transactions:
Class A Shares
Proceeds from shares issued		$—			$38,148			$—			$—
Dividends reinvested		1,977			5,123			—			—
Cost of shares redeemed		(9,926	)		(32,568	)		—			—
Change in net assets from Class A capital transactions		($7,949	)		$10,703			$—			$—
Class B Shares
Proceeds from shares issued		$—			$—			$—			$—
Dividends reinvested		—			386			—			—
Cost of shares redeemed		—			(39,247	)		—			—
Change in net assets from Class B capital transactions		$—			($38,861	)		$—			$—
Class I Shares
Proceeds from shares issued		$1,508,951			$5,944,177			$67,010,450			$189,005,851
Dividends reinvested		6,941			44,839			138			137
Cost of shares redeemed		(3,303,031	)		(6,020,764	)		(75,592,930	)		(180,709,843	)
Change in net assets from Class I capital transactions		($1,787,139	)		($31,748	)		($8,582,342	)		$8,296,145
Share Transactions:
Class A Shares
Issued		$—			3,741			—			—
Reinvested		202			518			—			—
Redeemed		(1,010	)		(3,305	)		—			—
Net change		(808	)		954			—			—
Class B Shares
Issued		—			—			—			—
Reinvested		—			39			—			—
Redeemed		—			(3,851	)		—			—
Net change		—			(3,812	)		—			—
Class I Shares
Issued		155,188			599,454			67,010,450			189,005,851
Reinvested		713			4,561			138			137
Redeemed		(339,947	)		(608,437	)		(75,592,931	)		(180,709,843	)
Net change		(184,046	)		(4,422	)		(8,582,343	)		8,296,145

* Includes accumulated (distributions in excess of) net investment income of $0, $0, $(2), and $(2), respectively.

See notes to financial statements.

17

SIGNAL FUNDS
Financial Highlights
For a Share Outstanding Throughout Each Period

			Change in Net Assets Resulting
			from Operations:											Less Dividends from:																	Ratios/Supplementary Data:
							Net				Change																														Ratio of
							Realized and				in Net																				Net						Ratio of Net				Expenses
	Net Asset		Net				Unrealized\				Asset Value							Net Realized							Net Asset						Assets,		Ratio of				Investment				to
	Value,		Investment				Gains				Resulting			Net				Gains							Value,						End of		Expenses				Income to				Average				Portfolio
	Beginning		Income				(Losses) on				from			Investment				(Losses) on				Total			End of		Total				Period		to Average				Average Net				Net				Turnover
Class A	of Period		(loss)				Investments				Operations			Income				Investments				Dividends			Period		Return*				(000’s)		Net Assets				Assets				Assets**				(c)
Large Cap Growth Fund
Period ended Sept. 30, 2006 (Unaudited)	$	12.08	$	(0.01	)		$	(0.24	)		$	(0.25	)		$—				$—				$—		$	11.83		(2.07	%)	(a)		676		1.37	%	(b)		(0.17	%)	(b)		1.57	%	(b)		26.39	%
Year ended March 31, 2006		11.35		(0.07	)			1.49				1.42			—		(e)		(0.69	)			(0.69	)		12.08		12.65	%			756		1.34	%			(0.60	%)			1.54	%			36.43	%
Year ended March 31, 2005		11.29		(0.01	)			1.00				0.99			—				(0.93	)			(0.93	)		11.35		8.74	%			566		1.43	%			(0.15	%)			1.63	%			39.77	%
Year ended March 31, 2004		9.05		(0.01	)			2.58				2.57			—		(e)		(0.33	)			(0.33	)		11.29		28.60	%			466		1.44	%			(0.16	%)			1.64	%			39.64	%
Period ended March 31, 2003(d)		10.00		—		(e)		(0.95	)			(0.95	)		—		(e)		—				—			9.05		(9.40	%)	(a)		224		1.45	%	(b)		0.11	%	(b)		1.67	%	(b)		34.11	%
Income Fund
Period ended Sept. 30, 2006 (unaudited)		9.57		0.19				0.09				0.28			(0.19	)			—				(0.19	)		9.66		2.99	%	(a)		268		0.91	%	(b)		4.06	%	(b)		1.16	%	(b)		6.84	%
Year ended March 31, 2006		9.77		0.37				(0.20	)			0.17			(0.37	)			—				(0.37	)		9.57		1.76	%			319		0.90	%			3.81	%			1.15	%			24.47	%
Year ended March 31, 2005		10.19		0.35				(0.42	)			(0.07	)		(0.35	)			—				(0.35	)		9.77		(0.64	%)			321		0.95	%			3.56	%			1.20	%			14.91	%
Year ended March 31, 2004		10.21		0.34				(0.02	)			0.32			(0.34	)			—		(e)		(0.34	)		10.19		3.17	%			263		0.98	%			3.31	%			1.23	%			43.76	%
Period ended March 31, 2003(d)		10.00		0.31				0.25				0.56			(0.31	)			(0.04	)			(0.35	)		10.21		5.65	%	(a)		218		1.07	%	(b)		3.54	%	(b)		1.32	%	(b)		7.47	%
Tax-Exempt Income Fund
Period ended Sept. 30, 2006 (unaudited)		9.74		0.15				0.08				0.23			(0.15	)			—				(0.15	)		9.82		2.38	%	(a)		137		1.15	%	(b)		3.06	%	(b)		1.55	%	(b)		8.03	%
Year ended March 31, 2006		9.89		0.31				(0.13	)			0.18			(0.31	)			(0.02	)			(0.33	)		9.74		1.82	%			144		1.08	%			3.11	%			1.51	%			11.64	%
Year ended March 31, 2005		10.22		0.32				(0.25	)			0.07			(0.32	)			(0.08	)			(0.40	)		9.89		0.73	%			136		1.12	%			3.21	%			1.62	%			18.11	%
Year ended March 31, 2004		10.18		0.33				0.08				0.41			(0.33	)			(0.04	)			(0.37	)		10.22		4.14	%			137		1.09	%			3.25	%			1.58	%			9.11	%
Period ended March 31, 2003(d)		10.00		0.27				0.21				0.48			(0.27	)			(0.03	)			(0.30	)		10.18		4.85	%	(a)		57		1.09	%	(b)		3.36	%	(b)		1.52	%	(b)		8.54	%
Class I
Large Cap Growth Fund
Period ended Sept. 30, 2006 (unaudited)		12.18		0.01				(0.25	)			(0.24	)		(0.01	)			—				(0.01	)		11.93		(2.01	%)	(a)		36,452		1.12	%	(b)		0.09	%	(b)		1.32	%	(b)		26.39	%
Year ended March 31, 2006		11.42		0.01				1.45				1.46			(0.01	)			(0.69	)			(0.70	)		12.18		12.95	%			38,240		1.08	%			0.09	%			1.28	%			36.43	%
Year ended March 31, 2005		11.33		0.01				1.02				1.03			(0.01	)			(0.93	)			(0.94	)		11.42		9.08	%			38,377		1.18	%			0.10	%			1.38	%			39.77	%
Year ended March 31, 2004		9.06		0.01				2.60				2.61			(0.01	)			(0.33	)			(0.34	)		11.33		29.00	%			33,600		1.19	%			0.09	%			1.39	%			39.64	%
Period ended March 31, 2003(d)		10.00		0.02				(0.94	)			(0.92	)		(0.02	)			—				(0.02	)		9.06		(9.20	%)	(a)		31,260		1.21	%	(b)		0.32	%	(b)		1.43	%	(b)		34.11	%
Income Fund
Period ended Sept. 30, 2006 (unaudited)		9.57		0.20				0.09				0.29			(0.20	)			—				(0.20	)		9.66		3.12	%	(a)		86,948		0.66	%	(b)		4.30	%	(b)		0.91	%	(b)		6.84	%
Year ended March 31, 2006		9.77		0.40				(0.20	)			0.20			(0.40	)			—				(0.40	)		9.57		2.01	%			97,809		0.65	%			4.06	%			0.90	%			24.47	%
Year ended March 31, 2005		10.19		0.38				(0.42	)			(0.04	)		(0.38	)			—				(0.38	)		9.77		(0.39	%)			97,675		0.69	%			3.82	%			0.94	%			14.91	%
Year ended March 31, 2004		10.21		0.36				(0.02	)			0.34			(0.36	)			—		(e)		(0.36	)		10.19		3.43	%			61,481		0.73	%			3.56	%			0.98	%			43.76	%
Period ended March 31, 2003(d)		10.00		0.29				0.25				0.54			(0.29	)			(0.04	)			(0.33	)		10.21		5.47	%	(a)		59,724		0.82	%	(b)		3.88	%	(b)		1.07	%	(b)		7.47	%
Tax-Exempt Income Fund
Period ended Sept. 30, 2006 (unaudited)		9.74		0.16				0.08				0.24			(0.16	)			—				(0.16	)		9.82		2.50	%	(a)		19,722		0.90	%	(b)		3.31	%	(b)		1.30	%	(b)		8.03	%
Year ended March 31, 2006		9.89		0.33				(0.13	)			0.20			(0.33	)			(0.02	)			(0.35	)		9.74		2.07	%			21,350		0.82	%			3.36	%			1.26	%			11.64	%
Year ended March 31, 2005		10.22		0.35				(0.25	)			0.10			(0.35	)			(0.08	)			(0.43	)		9.89		0.98	%			21,728		0.87	%			3.46	%			1.37	%			18.11	%
Year ended March 31, 2004		10.18		0.36				0.08				0.44			(0.36	)			(0.04	)			(0.40	)		10.22		4.41	%			18,660		0.83	%			3.52	%			1.33	%			9.11	%
Period ended March 31, 2003(d)		10.00		0.26				0.21				0.47			(0.26	)			(0.03	)			(0.29	)		10.18		4.75	%	(a)		19,154		0.86	%	(b)		3.58	%	(b)		1.27	%	(b)		8.54	%
Money Market Fund
Period ended Sept. 30, 2006 (unaudited)		1.000		0.023				—				0.023			(0.023	)			—				(0.023	)		1.000		2.33	%	(a)		93,025		0.50	%	(b)		4.60	%	(b)		0.55	%	(b)		N/A
Year ended March 31, 2006		1.000		0.032				—		(e)		0.032			(0.032	)			—				(0.032	)		1.000		3.24	%			101,607		0.51	%			3.18	%			0.56	%			N/A
Year ended March 31, 2005		1.000		0.012				—				0.012		��	(0.012	)			—				(0.012	)		1.000		1.23	%			93,311		0.51	%			1.30	%			0.56	%			N/A
Year ended March 31, 2004		1.000		0.006				—				0.006			(0.006	)			—				(0.006	)		1.000		0.57	%			70,829		0.54	%			0.57	%			0.59	%			N/A
Period ended March 31, 2003(d)		1.000		0.007				—				0.007			(0.007	)			—				(0.007	)		1.000		0.72	%	(a)		110,327		0.53	%	(b)		1.02	%	(b)		0.58	%	(b)		N/A

*	Excludes sales and redemption charges.	(c)	Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing among the classes of shares issued.
**	During the period certain fees were reduced. If such fee reductions had not occurred, the ratios would have been as indicated.	(d)	For the period july 15, 2002 through March 31, 2003.
(a)	Not annualized.	(e)	Amount is less than $0.005.
(b)	Annualized.

See notes to financial statements.

18

SIGNAL FUNDS
Notes to Financial Statements – September 30, 2006 (Unaudited)

1. Organization:

The Coventry Group (the “Group”) was organized on January 8, 1992 as a Massachusetts business trust, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Group contains the following Signal Funds (individually a “Fund,” collectively the “Funds”):

Fund Legal Name	Short Name
Signal Large Cap Growth Fund	Large Cap Growth Fund
Signal Income Fund	Income Fund
Signal Tax-Exempt Income Fund	Tax-Exempt Income Fund
Signal Money Market Fund	Money Market Fund

Financial statements for all other series of the Group are published separately.

Under the Group’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Group. In addition, in the normal course of business, the Group may enter into contracts with their vendors and others that provide for general indemnifications. Each Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.

2. Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with generally accepted accounting principles (“GAAP”) in the United States of America. The preparation of financial statements requires management to make estimates and assumptions that may affect the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

Securities Valuation:

The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, at the closing bid prices on such exchanges, or at the quoted bid price in the over-the-counter market. Equity securities traded on the NASDAQ stock market are valued at the NASDAQ official closing price.

Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by a pricing service, the use of which has been approved by the Group’s Board of Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and electronic data processing techniques which take into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, and trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities. All short-term debt portfolio securities with a remaining maturity of 60 days or less and securities held in the Money Market Fund are valued at amortized cost, which approximates market value. Under the amortized cost method, discount or premium, if any, is accreted or amortized, respectively, on a constant (straight-line) basis to the maturity of the security.

Securities or other assets for which market quotations are not readily available (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price) are valued at fair value as determined in good faith by or at the direction of the Group’s Board of Trustees.

New Accounting Pronouncements

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards (SFAS) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of September 30, 2006, the Funds do not believe the adoption of SFAS No. 157 will impact the financial statement amounts, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.

continued

19

SIGNAL FUNDS
Notes to Financial Statements – September 30, 2006 (Unaudited)

Repurchase Agreements:

The Funds may enter into repurchase agreements with banks or broker-dealers that Signal Capital Management, Inc., (the “Advisor”), a wholly owned subsidiary of Old National Trust Company, deems creditworthy. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller, under a repurchase agreement, is required to maintain the collateral held pursuant to the agreement, with a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited.

Security Transactions and Related Income:

Changes in holdings of portfolio securities shall be reflected no later than in the first calculation on the first business day following the trade date. However, for financial reporting purposes, portfolio security transactions are reported on trade date. Interest income is recognized on the accrual basis and includes, where applicable, the amortization of premium or discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. Income and realized and unrealized gains and losses on investments are allocated to each class of shares based upon relative net assets or other appropriate basis.

Expenses:

Expenses directly attributable to a Fund are charged directly to the Fund. Expenses relating to the Group are allocated proportionately to each Fund within the Group according to the relative net assets of each Fund or on another reasonable basis. Each class of shares bears its respective pro-rata portion of the expenses, except that each class separately bears expenses related specifically to that class, such as distribution fees.

Dividends to Shareholders:

Dividends from net investment income, if any, are declared daily and paid monthly for all of the Funds, except the Large Cap Growth Fund. Dividends for the Large Cap Growth Fund are declared and distributed quarterly. Dividends from net realized gains, if any, are declared and distributed annually for all Funds.

The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These ''book/tax’’ differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. To the extent dividends exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital.

Federal Income Taxes:

Each Fund intends to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code, and to make distributions from net investment income and from net realized capital gains sufficient to relieve it from all, or substantially all, federal income and excise taxes.

On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax return to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management has not completed their analysis on whether the adoption of FIN 48 will have an impact to the financial statements.

continued

20

SIGNAL FUNDS
Notes to Financial Statements – September 30, 2006 (Unaudited)

3. Related Party Transactions:

Investment Advisor:

The Funds and the Advisor are parties to an Investment Advisory Agreement under which the Advisor is entitled to receive an annual fee, computed daily and paid monthly, equal to the average daily net assets of each Fund, at the following annual percentage rates:

Name	Fee Rate*
Large Cap Growth Fund		0.75	%
Income Fund		0.50
Tax-Exempt Income Fund		0.50
Money Market Fund		0.10

* The Advisor voluntarily waived fees during the year. With these voluntary fee waivers by the Advisor, net advisory fees for the Funds on an annual basis are 0.55% for the Large Cap Growth Fund, 0.25% for the Income Fund, 0.10% for the Tax-Exempt Income Fund, and 0.05% for the Money Market Fund.

The Advisor may from time to time voluntarily reduce all or a portion of its advisory fee with respect to a Fund.

Administration:

The Funds and BISYS Fund Services Ohio, Inc. (“BISYS Ohio” or the “Administrator”), a wholly owned subsidiary of The BISYS Group, Inc., are parties to an Administration Agreement under which the Administrator provides services for a fee that is computed daily and paid monthly at an annual rate of 0.14% of the average daily net assets of the Funds. Certain officers and trustees of the Group are also employees of the Administrator and are paid no fees directly by the Funds for serving as officers of the Group, except for the Chief Compliance Officer (the “CCO”). BISYS Ohio also provides fund accounting and transfer agency services to the Funds pursuant to certain fee arrangements. For transfer agency services, BISYS Ohio receives a fee based on the number of shareholders of record and reimbursement of certain expenses. For fund accounting, BISYS Ohio receives a fee from each Fund for such services equal to an annual rate of three one-hundredths of one percent (.03%) of that Funds’ average daily net assets, subject to certain minimums.

Under a Compliance Services Agreement between the Funds and BISYS Ohio (the “CCO Agreement”), BISYS Ohio makes an employee available to serve as the Funds’ CCO. Under the CCO Agreement, BISYS Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Funds’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the Funds paid BISYS Ohio $13,075 for the six months ended September 30, 2006, plus certain out of pocket expenses. BISYS Ohio pays the salary and other compensation earned by any such individuals as employees of BISYS Ohio.

Pursuant to a Sub-Administration agreement, the Advisor provides certain administration services to the Funds. For their services, the Advisor is entitled to a fee payable by the Administrator of 0.05% for the Large Cap Fund, Income Fund and the Tax-Exempt Fund, and 0.10% for the Money Market Fund.

Distribution:

The Funds and BISYS Fund Services Limited Partnership (the “Distributor”), a wholly owned subsidiary of The BISYS Group, Inc., are parties to a Distribution Agreement under which shares of the Funds are sold on a continuous basis. The Group has adopted a Service and Distribution Plan for Class A and Class B shares pursuant to Rule 12b-1 under the 1940 Act under which the Class A and Class B shares of each fund are authorized to pay the Distributor for payments it makes to banks, other institutions and broker-dealers, and for expenses the Distributor and any of its affiliates incur for providing distribution or shareholder service assistance to the Funds. The calculated annual rate will not exceed 0.25% of the average daily net asset value of Class A shares.

For the six months ended September 30, 2006, the Distributor received $699 from commissions earned on sales of Class A shares and redemption of Class B shares, none of which the Distributor re-allowed to affiliated broker-dealers of the Funds.

There is no initial sales charge on purchases of $1 million or more of the Class A Shares of the Funds. However, a contingent deferred sales charge (“CDSC”) will be charged to the shareholder if shares are redeemed in the first 18 months after purchase. The Funds collected no CDSC fees on Class A Shares during the six months ended September 30, 2006.

continued

21

SIGNAL FUNDS
Notes to Financial Statements – September 30, 2006 (Unaudited)

4. Purchases and Sales of Securities:

Purchases and sales of investment securities, excluding short-term and U.S. government securities, for the six months ended September 30, 2006, totaled:

Fund	Purchases	Sales
Large Cap Growth Fund	$9,957,331	$10,763,467
Income Fund	7,351,288	19,376,473
Tax-Exempt Income Fund	1,566,833	3,790,734

5. Federal Tax Information:

At September 30, 2006, the cost, gross unrealized appreciation and gross unrealized depreciation on securities, for federal income tax purposes, were as follows:

								Net Unrealized
			Tax Unrealized		Tax Unrealized			Appreciation
Fund	Tax Cost		Appreciation		(Depreciation)			(Depreciation)
Large Cap Growth Fund		$29,022,253		$8,192,259		$(244,295	)		$7,947,964
Income Fund		87,669,651		301,697		(1,444,022	)		(1,142,325	)
Tax-Exempt Income Fund		19,461,051		368,888		(61,140	)		307,748

As of March 31, 2006, for Federal income tax purposes, the following Funds have capital loss carryforwards, which are available to offset future realized gains, if any, to the extent provided by the treasury regulations:

	Amount		Expires
Income Fund	$	70,328		2012
		222,752		2014

	Amount		Expires
Money Market	$	46		2014

Capital losses after October 31 (“post-October losses”) within the taxable year are deemed to arise on the first business day of the Funds
next taxable year. After October 31, 2005, the following Funds incurred and elected to defer net capital losses, for federal income tax purposes, were as follows:

	Post-October Loss
Income Fund	$44,477
Money Market	70

The tax character of distributions paid during the fiscal year ended March 31, 2006 were as follows:

	Distributions paid from
			Net Long Term		Total Taxable		Tax Exempt		Total Distributions
Fund	Ordinary Income		Capital Gains		Distributions		Distributions		Paid1
Large Cap Growth Fund		$58,614		$2,454,901		$2,513,515		$—		$2,513,515
Income Fund		4,028,378		—		4,028,378		—		4,028,378
Tax-Exempt Income Fund		6,909		48,928		55,837		743,148		798,985
Money Market Fund		2,873,806				2,873,806		—		2,873,806

¹Total distributions paid may differ from the amount reported in the Statement of Changes in Net Assets because for tax purposes distributions are recognized when actually paid.

The tax character year distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of current tax year, March 31, 2007.

continued

22

SIGNAL FUNDS
Notes to Financial Statements – September 30, 2006 (Unaudited)

Expense Comparison:

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, (2) ongoing costs, including management fees; distribution fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2006 through September 30, 2006.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

		Beginning	Ending Account	Expense Paid	Expense Ratio
		Account Value	Value	During Period*	During Period
		4/1/06	9/30/06	4/1/06 - 9/30/06	4/1/06 - 9/30/06
Large Cap Growth Fund	Class A	$1,000.00	$979.30	$6.80	1.37%
	Class I	1,000.00	979.90	5.56	1.12%
Income Fund	Class A	1,000.00	1,029.90	4.63	0.91%
	Class I	1,000.00	1,031.20	3.36	0.66%
Tax-Exempt Income Fund	Class A	1,000.00	1,023.80	5.83	1.15%
	Class I	1,000.00	1,025.00	4.57	0.90%
Money Market Fund	Class I	1,000.00	1,023.30	2.54	0.50%

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

		Beginning	Ending Account	Expense Paid	Expense Ratio
		Account Value	Value	During Period*	During Period
		4/1/06	9/30/06	4/1/06 - - 9/30/06	4/1/06 - 9/30/06
Large Cap Growth Fund	Class A	$1,000.00	$1,018.20	$6.93	1.37%
	Class I	1,000.00	1,019.45	5.67	1.12%
Income Fund	Class A	1,000.00	1,020.51	4.61	0.91%
	Class I	1,000.00	1,021.76	3.35	0.66%
Tax-Exempt Income Fund	Class A	1,000.00	1,019.30	5.82	1.15%
	Class I	1,000.00	1,020.56	4.56	0.90%
Money Market Fund	Class I	1,000.00	1,022.56	2.54	0.50%

* Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent half-year divided by the number of days in the fiscal year.

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