United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-6082
(Investment Company Act File Number)
The Riverfront Funds, Inc.
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Riverfront Large Company Select Fund
Riverfront Balanced Fund
Riverfront Small Company Select Fund
Riverfront Select Value Fund
Riverfront U.S. Government Income Fund
Riverfront U.S. Government Secs. Money Market Fund
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(412) 288-1900
(Registrant's Telephone Number)
Timothy S. Johnson, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 12/31/2003
Date of Reporting Period: Six months ended 6/30/03
Item 1. Reports to Stockholders
Semi-Annual Report
June 30, 2003
The Riverfront Large Company Select Fund
The Riverfront Balanced Fund
The Riverfront Small Company Select Fund
The Riverfront Select Value Fund
The Riverfront U.S. Government Income Fund
The Riverfront U.S. Government Securities Money Market Fund
| NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE |
[Logo of Riverfront Funds]
| Financial Highlights | 2 | |
| Schedule of Portfolio Investments | 6 | |
| Notes to Portfolio of Investments | 16 | |
| Statements of Assets and Liabilities | 17 | |
| Statements of Operations | 19 | |
| Statements of Changes in Net Assets | 21 | |
| Notes to Financial Statements | 23 |
Year Ended | Net Asset | Net | Net Realized | Total from | Distributions | Distributions | Distributions | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Large Company Select Fund--Investor A Shares | ||||||||||||||||
| 1998 | $ 11.34 | (0.05) | 4.47 | 4.42 | 0.00 | 0.00 | (1.87) | (1.87) | ||||||||
| 1999 | $ 13.89 | (0.10) | 4.76 | 4.66 | 0.00 | 0.00 | (0.96) | (0.96) | ||||||||
| 2000 | $ 17.59 | (0.12) | (3.41) | (3.53) | 0.00 | 0.00 | (1.68) | (1.68) | ||||||||
| 2001 | $ 12.38 | (0.10) | (3.26) | (3.36) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2002 | $ 9.02 | (0.08) | (2.32) | (2.40) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2003(b) | $ 6.62 | (0.02) | 0.59 | 0.57 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| Large Company Select Fund--Investor B Shares | ||||||||||||||||
| 1998 | $ 11.28 | (0.10) | 4.38 | 4.28 | 0.00 | 0.00 | (1.87) | (1.87) | ||||||||
| 1999 | $ 13.69 | (0.18) | 4.63 | 4.45 | 0.00 | 0.00 | (0.96) | (0.96) | ||||||||
| 2000 | $ 17.18 | (0.22) | (3.33) | (3.55) | 0.00 | 0.00 | (1.68) | (1.68) | ||||||||
| 2001 | $ 11.95 | (0.17) | (3.14) | (3.31) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2002 | $ 8.64 | (0.12) | (2.23) | (2.35) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2003(b) | $ 6.29 | (0.04) | 0.56 | 0.52 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| Balanced Fund--Investor A Shares | ||||||||||||||||
| 1998 | $ 12.30 | 0.23 | 2.84 | 3.07 | (0.23) | 0.00 | (2.10) | (2.33) | ||||||||
| 1999 | $ 13.04 | 0.18 | 1.51 | 1.69 | (0.18) | 0.00 | (1.15) | (1.33) | ||||||||
| 2000 | $ 13.40 | 0.18 | 0.01 | 0.19 | (0.18) | 0.00 | (1.33) | (1.51) | ||||||||
| 2001 | $ 12.08 | 0.10 | (1.97) | (1.87) | (0.09) | 0.00 | 0.00 | (0.09) | ||||||||
| 2002 | $ 10.12 | 0.07 | (1.60) | (1.53) | (0.05) | 0.00 | 0.00 | (0.05) | ||||||||
| 2003(b) | $ 8.54 | 0.03 | 0.57 | 0.60 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| Balanced Fund--Investor B Shares | ||||||||||||||||
| 1998 | $ 12.71 | 0.11 | 2.95 | 3.06 | (0.11) | 0.00 | (2.10) | (2.21) | ||||||||
| 1999 | $ 13.56 | 0.07 | 1.56 | 1.63 | (0.07) | 0.00 | (1.15) | (1.22) | ||||||||
| 2000 | $ 13.97 | 0.06 | 0.03 | 0.09 | (0.06) | 0.00 | (1.33) | (1.39) | ||||||||
| 2001 | $ 12.67 | 0.01 | (2.06) | (2.05) | (0.01) | 0.00 | 0.00 | (0.01) | ||||||||
| 2002 | $ 10.61 | (0.01) | (1.66) | (1.67) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2003(b) | $ 8.94 | (0.01) | 0.60 | 0.59 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| Small Company Select Fund--Investor A Shares | ||||||||||||||||
| 1998 | $ 9.17 | (0.09) | (0.01) | (0.10) | 0.00 | 0.00 | (1.18) | (1.18) | ||||||||
| 1999 | $ 7.89 | (0.14) | 3.85 | 3.71 | 0.00 | 0.00 | (0.16) | (0.16) | ||||||||
| 2000 | $ 11.44 | (0.13) | (2.32) | (2.45) | 0.00 | 0.00 | (1.50) | (1.50) | ||||||||
| 2001 | $ 7.49 | (0.11) | (2.98) | (3.09) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2002 | $ 4.40 | (0.11) | (1.06) | (1.17) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2003(b) | $ 3.23 | (0.04) | 0.54 | 0.49 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| Small Company Select Fund--Investor B Shares | ||||||||||||||||
| 1998 | $ 9.49 | (0.15) | (0.02) | (0.17) | 0.00 | 0.00 | (1.18) | (1.18) | ||||||||
| 1999 | $ 8.14 | (0.20) | 3.94 | 3.74 | 0.00 | 0.00 | (0.16) | (0.16) | ||||||||
| 2000 | $ 11.72 | (0.20) | (2.39) | (2.59) | 0.00 | 0.00 | (1.50) | (1.50) | ||||||||
| 2001 | $ 7.63 | (0.16) | (3.02) | (3.18) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2002 | $ 4.45 | (0.14) | (1.06) | (1.20) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2003(b) | $ 3.25 | (0.06) | 0.53 | 0.47 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
(a) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above.
(b) Six months ended June 30, 2003. (unaudited).
(c) Reflects operations for the period from May 2, 2001 (date of initial public investment) to December 31, 2001.
(d) Reflects a cumulative total return since inception.
(e) Computed on annualized basis.
Net Asset | Total | Expenses |
Net | (a) | Net Assets, | Portfolio | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ 13.89 | 39.03% | 1.66% | (0.48)% | 0.00% | $ 58,801 | 69% | ||||||
$ 17.59 | 33.57% | 1.51% | (0.75)% | 0.00% | $ 81,318 | 35% | ||||||
$ 12.38 | (20.09)% | 1.51% | (0.80)% | 0.00% | $ 68,611 | 81% | ||||||
$ 9.02 | (27.14)% | 1.69% | (0.83)% | 0.00% | $ 37,261 | 88% | ||||||
$ 6.62 | (26.61)% | 1.86% | (0.76)% | 0.00% | $ 17,947 | 66% | ||||||
$ 7.19 | 8.61% | 1.96% | (0.57)% | 0.00% | $ 18,645 | 67% | ||||||
$ 13.69 | 38.00% | 2.41% | (1.28)% | 0.00% | $ 9,416 | 69% | ||||||
$ 17.18 | 32.52% | 2.26% | (1.50)% | 0.00% | $ 25,793 | 35% | ||||||
$ 11.95 | (20.69)% | 2.26% | (1.55)% | 0.00% | $ 25,177 | 81% | ||||||
$ 8.64 | (27.70)% | 2.44% | (1.59)% | 0.00% | $ 15,700 | 88% | ||||||
$ 6.29 | (27.20)% | 2.61% | (1.51)% | 0.00% | $ 9,656 | 66% | ||||||
$ 6.81 | 8.27% | 2.71% | (1.32)% | 0.00% | $ 9,607 | 67% | ||||||
$ 13.04 | 25.29% | 1.69% | 1.65% | 0.16% | $ 11,247 | 118% | ||||||
$ 13.40 | 13.15% | 1.61% | 1.32% | 0.16% | $ 12,962 | 51% | ||||||
$ 12.08 | 1.41% | 1.53% | 1.25% | 0.16% | $ 11,748 | 54% | ||||||
$ 10.12 | (15.56)% | 1.73% | 0.82% | 0.12% | $ 9,112 | 89% | ||||||
$ 8.54 | (15.14)% | 1.99% | 0.65% | 0.10% | $ 6,137 | 112% | ||||||
$ 9.14 | 7.03% | 2.08% | 0.62% | 0.10% | $ 7,314 | 15% | ||||||
$ 13.56 | 24.34% | 2.50% | 0.84% | 0.10% | $ 13,895 | 118% | ||||||
$ 13.97 | 12.10% | 2.42% | 0.52% | 0.10% | $ 17,167 | 51% | ||||||
$ 12.67 | 0.66% | 2.34% | 0.45% | 0.10% | $ 17,796 | 54% | ||||||
$ 10.61 | (16.20)% | 2.49% | 0.05% | 0.10% | $ 11,949 | 89% | ||||||
$ 8.94 | (15.74)% | 2.74% | (0.10)% | 0.10% | $ 7,136 | 112% | ||||||
$ 9.53 | 6.60% | 2.83% | (0.12)% | 0.10% | $ 5,902 | 15% | ||||||
$ 7.89 | (2.26)% | 1.97% | (1.08)% | 0.00% | $ 19,826 | 114% | ||||||
$ 11.44 | 47.08% | 1.96% | (1.62)% | 0.00% | $ 23,633 | 65% | ||||||
$ 7.49 | (21.08)% | 1.72% | (1.30)% | 0.00% | $ 18,806 | 53% | ||||||
$ 4.40 | (41.26)% | 2.23% | (1.97) % | 0.00% | $ 9,811 | 59% | ||||||
$ 3.23 | (26.59)% | 2.79% | (2.34) % | 0.00% | $ 5,076 | 118% | ||||||
$ 3.72 | 15.17% | 3.20% | (2.65)% | 0.00% | $ 6,102 | 59% | ||||||
$ 8.14 | (2.96)% | 2.72% | (1.88)% | 0.00% | $ 1,455 | 114% | ||||||
$ 11.72 | 46.01% | 2.71% | (2.37)% | 0.00% | $ 1,931 | 65% | ||||||
$ 7.63 | (21.76)% | 2.45% | (2.04)% | 0.00% | $ 2,072 | 53% | ||||||
$ 4.45 | (41.68)% | 2.97% | (2.71)% | 0.00% | $ 1,001 | 59% | ||||||
$ 3.25 | (26.97)% | 3.54% | (3.09)% | 0.00% | $ 550 | 118% | ||||||
$ 3.72 | 14.46% | 3.41% | (3.95)% | 0.00% | $ 570 | 59% |
Year Ended | Net Asset | Net | Net Realized | Total from | Distributions | Distributions | Distributions | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Select Value Fund--Investor A Shares | ||||||||||||||||
| 1998 | $ 11.68 | 0.12 | 0.25 | 0.37 | (0.12) | 0.00 | (1.46) | (1.58) | ||||||||
| 1999 | $ 10.47 | 0.03 | 0.75 | 0.78 | 0.00 | ( 0.03) | 0.00 | (0.03) | ||||||||
| 2000 | $ 11.22 | (0.04) | (0.29) | (0.33) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2001 | $ 10.89 | (0.02) | (2.05) | (2.07) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2002 | $ 8.82 | 0.03 | (2.21) | (2.18) | (0.02) | 0.00 | 0.00 | (0.02) | ||||||||
| 2003(b) | $ 6.62 | 0.01 | 0.78 | 0.79 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| Select Value Fund--Investor B Shares | ||||||||||||||||
| 1998 | $ 11.98 | 0.03 | 0.25 | 0.28 | (0.04) | 0.00 | (1.46) | (1.50) | ||||||||
| 1999 | $ 10.76 | (0.07) | 0.79 | 0.72 | 0.00 | (0.01) | 0.00 | (0.01) | ||||||||
| 2000 | $ 11.47 | (0.14) | (0.28) | (0.42) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2001 | $ 11.05 | (0.12) | (2.05) | (2.17) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2002 | $ 8.88 | (0.04) | (2.21) | (2.25) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| 2003(b) | $ 6.63 | (0.05) | 0.82 | 0.77 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| U.S. Government Income Fund--Investor A Shares | ||||||||||||||||
| 1998 | $ 9.48 | 0.47 | 0.17 | 0.64 | (0.47) | 0.00 | 0.00 | (0.47) | ||||||||
| 1999 | $ 9.65 | 0.48 | (0.62) | (0.14) | (0.49) | 0.00 | 0.00 | (0.49) | ||||||||
| 2000 | $ 9.02 | 0.50 | 0.46 | 0.96 | (0.50) | 0.00 | 0.00 | (0.50) | ||||||||
| 2001 | $ 9.48 | 0.47 | 0.24 | 0.71 | (0.47) | 0.00 | (0.07) | (0.54) | ||||||||
| 2002 | $ 9.65 | 0.33 | 0.39 | 0.72 | (0.33) | 0.00 | (0.28) | (0.61) | ||||||||
| 2003(b) | $ 9.76 | 0.18 | 0.05 | 0.23 | (0.09) | 0.00 | 0.00 | (0.09) | ||||||||
| U.S. Government Income Fund--Investor B Shares | ||||||||||||||||
| 1998 | $ 10.68 | 0.44 | 0.19 | 0.63 | (0.38) | 0.00 | 0.00 | (0.38) | ||||||||
| 1999 | $ 10.93 | 0.45 | (0.69) | (0.24) | (0.41) | 0.00 | 0.00 | (0.41) | ||||||||
| 2000 | $ 10.28 | 0.49 | 0.53 | 1.02 | (0.41) | 0.00 | 0.00 | (0.41) | ||||||||
| 2001 | $ 10.89 | 0.42 | 0.30 | 0.72 | (0.38) | 0.00 | (0.07) | (0.45) | ||||||||
| 2002 | $ 11.16 | 0.29 | 0.47 | 0.76 | (0.26) | 0.00 | (0.27) | (0.53) | ||||||||
| 2003(b) | $ 11.39 | 0.13 | 0.10 | 0.23 | (0.05) | 0.00 | 0.00 | (0.05) | ||||||||
| U.S. Government Securities Money Market Fund--Investor A Shares | ||||||||||||||||
| 1998 | $ 1.000 | 0.048 | 0.000 | 0.048 | (0.048) | 0.000 | 0.000 | (0.048) | ||||||||
| 1999 | $ 1.000 | 0.045 | 0.000 | 0.045 | (0.045) | 0.000 | 0.000 | (0.045) | ||||||||
| 2000 | $ 1.000 | 0.057 | 0.000 | 0.057 | (0.057) | 0.000 | 0.000 | (0.057) | ||||||||
| 2001 | $ 1.000 | 0.035 | 0.000 | 0.035 | (0.035) | 0.000 | 0.000 | (0.035) | ||||||||
| 2002 | $ 1.000 | 0.010 | 0.000 | 0.010 | (0.010) | 0.000 | 0.000 | (0.010) | ||||||||
| 2003(b) | $ 1.000 | 0.003 | 0.000 | 0.003 | (0.003) | 0.000 | 0.000 | (0.003) | ||||||||
| U.S. Government Securities Money Market Fund--Institutional Shares | ||||||||||||||||
| 2001(c) | $ 1.000 | 0.020 | 0.000 | 0.020 | (0.020) | 0.000 | 0.000 | (0.020) | ||||||||
| 2002 | $ 1.000 | 0.013 | 0.000 | 0.013 | (0.013) | 0.000 | 0.000 | (0.013) | ||||||||
| 2003(b) | $ 1.000 | 0.004 | 0.000 | 0.004 | (0.004) | 0.000 | 0.000 | (0.004) | ||||||||
(a) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above.
(b) Six months ended June 30, 2003. (unaudited).
(c) Reflects operations for the period from May 2, 2001 (date of initial public investment) to December 31, 2001.
(d) Reflects a cumulative total return since inception.
(e) Computed on annualized basis.
Net Asset | Total | Expenses |
Net | (a) | Net Assets, | Portfolio | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ 10.47 | 3.37% | 1.76% | 1.03% | 0.03% | $ 77,144 | 129% | ||||||
$ 11.22 | 7.44% | 1.84% | 0.22% | 0.03% | $ 26,075 | 128% | ||||||
$ 10.89 | (2.94% | 1.71% | (0.41)% | 0.13% | $ 26,152 | 43% | ||||||
$ 8.82 | (19.01)% | 1.76% | (0.23)% | 0.11% | $ 18,928 | 35% | ||||||
$ 6.62 | (24.73)% | 1.92% | 0.34% | 0.10% | $ 10,906 | 117% | ||||||
$ 7.41 | 11.93% | 2.07% | 0.13% | 0.10% | $ 13,555 | 25% | ||||||
$ 10.76 | 2.51% | 2.54% | 0.25% | 0.00% | $ 16,563 | 129% | ||||||
$ 11.47 | 6.65% | 2.63% | (0.50)% | 0.00% | $ 11,574 | 128% | ||||||
$ 11.05 | (3.66)% | 2.50% | (1.21)% | 0.10% | $ 9,507 | 43% | ||||||
$ 8.88 | (19.64)% | 2.53% | (1.01)% | 0.10% | $ 6,050 | 35% | ||||||
$ 6.63 | (25.34)% | 2.67% | (0.41)% | 0.10% | $ 3,471 | 117% | ||||||
$ 7.40 | 11.61% | 2.82% | (0.61)% | 0.10% | $ 3,172 | 25% | ||||||
$ 9.65 | 6.95% | 1.12% | 4.90% | 0.06% | $ 43,411 | 109% | ||||||
$ 9.02 | (1.43)% | 1.08% | 5.18% | 0.06% | $ 36,720 | 74% | ||||||
$ 9.48 | 11.01% | 1.05% | 5.46% | 0.06% | $ 43,412 | 69% | ||||||
$ 9.65 | 7.67% | 1.10% | 4.84% | 0.02% | $ 45,573 | 65% | ||||||
$ 9.76 | 7.64% | 1.19% | 3.44% | 0.00% | $ 44,018 | 398% | ||||||
$ 9.90 | 2.38% | 1.16% | 1.85% | 0.00% | $ 45,577 | 276% | ||||||
$ 10.93 | 6.03% | 1.93% | 4.09% | 0.00% | $ 1,294 | 109% | ||||||
$ 10.28 | (2.25)% | 1.89% | 4.40% | 0.00% | $ 1,554 | 74% | ||||||
$ 10.89 | 10.19% | 1.86% | 4.66% | 0.00% | $ 1,531 | 69% | ||||||
$ 11.16 | 6.75% | 1.87% | 4.04% | 0.00% | $ 1,953 | 65% | ||||||
$ 11.39 | 6.89% | 1.94% | 2.53% | 0.00% | $ 4,839 | 398% | ||||||
$ 11.57 | 1.99% | 1.91% | 1.09% | 0.00% | $ 4,796 | 276% | ||||||
$1.000 | 4.93% | 0.66% | 4.82% | 0.15% | $ 188,847 | N/A | ||||||
$1.000 | 4.61% | 0.58% | 4.53% | 0.15% | $ 194,528 | N/A | ||||||
$1.000 | 5.85% | 0.56% | 5.68% | 0.15% | $ 162,804 | N/A | ||||||
$1.000 | 3.54% | 0.66% | 3.41% | 0.05% | $ 180,951 | N/A | ||||||
$1.000 | 1.03% | 0.72% | 1.03% | 0.00% | $ 173,650 | N/A | ||||||
$1.000 | 0.26% | 0.73% | 0.53% | 0.00% | $ 175,072 | N/A | ||||||
$ 1.000 | 1.97%(d) | 0.46%(e) | 2.95%(e) | 0.00%(e) | $ 25,976 | N/A | ||||||
$ 1.000 | 1.28% | 0.47% | 1.26% | 0.00% | $ 46,505 | N/A | ||||||
$ 1.000 | 0.38% | 0.48% | 0.78% | 0.00% | $ 44,568 | N/A |
Shares |
|
| Market | ||
|---|---|---|---|---|---|
| COMMON STOCKS (97.2%) | |||||
| Aerospace (2.3%) | |||||
24,900 | Rockwell Collins | $ 613,287 | |||
| Banks (1.8%) | |||||
6,000 | Capital One Financial Co. | 295,080 | |||
3,000 | Fannie Mae Corp. | 202,320 | |||
TOTAL | 497,400 | ||||
| Beverages (4.1%) | |||||
6,000 | Anheuser-Busch Cos., Inc. | 306,300 | |||
16,000 | Coca-Cola Co. | 742,560 | |||
5,000 | (1) | Starbucks Corp. | 122,600 | ||
TOTAL | 1,171,460 | ||||
| Broadcast (0.7%) | |||||
7,000 | (1) | Fox Entertainment Group | 201,460 | ||
| Chemicals (1.2%) | |||||
6,000 | Sigma-Aldrich Corp. | 325,080 | |||
| Computers & Peripherals (9.3%) | |||||
59,350 | (1) | Cisco Systems, Inc. | 984,616 | ||
27,700 | (1) | Dell Computer Corp. | 885,292 | ||
3,000 | International Business Machines Corp. | 247,500 | |||
7,200 | (1) | Lexmark International Group | 509,544 | ||
TOTAL | 2,626,952 | ||||
| Consumer Goods & Services (4.0%) | |||||
10,000 | Clorox Co. | 426,500 | |||
8,000 | Procter & Gamble Co. | 713,440 | |||
TOTAL | 1,139,940 | ||||
| Data Processing (0.9%) | |||||
6,000 | First Data Corp. | 248,640 | |||
| Diversified (8.3%) | |||||
34,000 | General Electric Co. | 975,120 | |||
5,800 | General Mills, Inc. | 274,978 | |||
7,400 | H.J. Heinz Co. | 244,052 | |||
5,000 | Illinois Tool Works, Inc. | 329,250 | |||
26,900 | Tyco International, Ltd. | 510,562 | |||
TOTAL | 2,333,962 | ||||
| E-Commerce (0.9%) | |||||
2,500 | (1) | eBay, Inc. | 260,450 | ||
| Financial Services (3.7%) | |||||
10,000 | American Express Co. | 418,100 | |||
4,000 | J.P. Morgan Chase & Co. | 136,720 | |||
9,300 | SLM Holding Corp. | 364,281 | |||
3,500 | State Street Corp. | 137,900 | |||
TOTAL | 1,057,001 | ||||
| Food--Diversified (0.8%) | |||||
6,900 | Kellogg Co. | 237,153 | |||
| COMMON STOCKS, continued | |||||
| Independent Power Producer (3.2%) | |||||
25,000 | Rockwell Automation, Inc. | $ 596,000 | |||
10,000 | Southern Co. | 311,600 | |||
TOTAL | 907,600 | ||||
| Insurance (2.9%) | |||||
2,500 | Aetna | 150,500 | |||
8,000 | Marsh & McLennan Cos., Inc. | 408,560 | |||
5,000 | United Health Group, Inc. | 251,250 | |||
TOTAL | 810,310 | ||||
| Internet Services (0.6%) | |||||
4,000 | (1) | Symantec Corp. | 175,440 | ||
| Medical--Biotech (1.2%) | |||||
8,000 | (1) | Chiron Corp | 349,760 | ||
| Medical--Drugs (3.3%) | |||||
6,500 | Abbott Laboratories | 284,440 | |||
24,000 | Bristol-Myers Squibb Co. | 651,600 | |||
TOTAL | 936,040 | ||||
| Medical--HMO (0.8%) | |||||
3,000 | (1) | Anthem | 231,450 | ||
| Medical Supplies (7.8%) | |||||
3,900 | Cardinal Health, Inc. | 250,770 | |||
7,000 | Guidant Corp. | 310,730 | |||
14,700 | Johnson & Johnson | 759,990 | |||
9,000 | Medtronic, Inc. | 431,730 | |||
8,000 | St. Jude Medical, Inc. | 460,000 | |||
TOTAL | 2,213,220 | ||||
| Pharmaceuticals (11.1%) | |||||
9,875 | (1) | Amgen, Inc. | 661,428 | ||
8,500 | Eli Lilly & Co. | 586,245 | |||
14,000 | Merck & Co., Inc. | 847,700 | |||
30,500 | Pfizer, Inc. | 1,041,575 | |||
TOTAL | 3,136,948 | ||||
| Retails (8.9%) | |||||
3,000 | (1) | Bed Bath & Beyond, Inc. | 116,430 | ||
22,000 | Gap, Inc./The | 412,720 | |||
6,000 | Lowe's Companies, Inc. | 257,700 | |||
6,000 | Target Corp. | 227,040 | |||
18,100 | Walgreen Co. | 544,810 | |||
18,000 | Wal-Mart Stores, Inc. | 966,060 | |||
TOTAL | 2,524,760 | ||||
| Semiconductors (4.5%) | |||||
44,550 | Intel Corp. | 925,749 | |||
7,000 | (1) | QLogic Corp. | 338,310 | ||
TOTAL | 1,264,059 | ||||
| COMMON STOCKS, continued | |||||
| Software & Computer Services (8.9%) | |||||
14,000 | (1) | BMC Software, Inc. | $ 228,620 | ||
24,000 | (1) | Citrix Systems, Inc. | 488,640 | ||
20,000 | Hewlett-Packard Co. | 426,000 | |||
32,250 | Microsoft Corp. | 825,922 | |||
38,000 | (1) | Oracle Corp. | 456,760 | ||
3,000 | (1) | Veritas Software Corp. | 86,010 | ||
TOTAL | 2,511,952 | ||||
| Telecommunication--Equipment (0.3%) | |||||
4,000 | Scientific-Atlanta, Inc. | 95,360 | |||
| Toys (0.7%) | |||||
10,000 | Mattel, Inc. | 189,200 | |||
| Transportation (0.7%) | |||||
5,000 | Harley-Davidson, Inc. | 199,300 | |||
| COMMON STOCKS, continued | |||||
| Utilities--Telecommunications (4.3%) | |||||
37,350 | (1) | Nextel Communications, Inc. | $ 675,288 | ||
6,900 | Qualcomm, Inc. | $ 246,675 | |||
7,000 | Verizon Communications, Inc. | 276,150 | |||
TOTAL | 1,198,113 | ||||
| TOTAL COMMON STOCKS (IDENTIFIED COST $27,284,446) | 27,456,297 | ||||
| INVESTMENT COMPANIES (2.9%) | |||||
808,128 | AIM Institutional Money Market Fund (at net asset value) | 808,128 | |||
| TOTAL INVESTMENTS (100.1%) (4) (IDENTIFIED COST $28,092,574) | 28,264,425 | ||||
| OTHER ASSETS & LIABILITIES, NET (0.1%) | (11,759) | ||||
| TOTAL NET ASSETS (100%) | $ 28,252,666 | ||||
Shares |
|
Market | |||
|---|---|---|---|---|---|
| COMMON STOCKS (61.3%) | |||||
| Banks (8.3%) | |||||
4,000 | Bank of America Corp. | $ 316,120 | |||
7,000 | Bank One Corp. | 260,260 | |||
4,000 | Citigroup, Inc. | 171,200 | |||
5,000 | Wachovia Corp. | 199,800 | |||
3,000 | Wells Fargo & Co. | 151,200 | |||
TOTAL | 1,098,580 | ||||
| Cable-TV (1.0%) | |||||
4,235 | (1) | Comcast Corp. -- Class A | 127,812 | ||
| Computers & Peripherals (4.6%) | |||||
10,000 | (1) | Cisco Systems, Inc. | 165,900 | ||
4,000 | (1) | Dell Computer Corp. | 127,840 | ||
14,000 | EMC Corp. -- Mass | 146,580 | |||
2,000 | International Business Machines Corp. | 165,000 | |||
TOTAL | 605,320 | ||||
| Consumer Goods & Services (2.0%) | |||||
2,000 | Clorox Co. | 85,300 | |||
2,000 | Procter & Gamble Co. | 178,360 | |||
TOTAL | 263,660 | ||||
| Diversified (4.2%) | |||||
5,000 | General Electric Co. | 143,400 | |||
2,000 | 3M Co. | 257,960 | |||
8,000 | Tyco International, Ltd. | 151,840 | |||
TOTAL | 553,200 | ||||
| E-Commerce (0.4%) | |||||
500 | (1) | eBay Inc. | 52,090 | ||
| Entertainment (0.3%) | |||||
2,000 | Walt Disney Co. | 39,500 | |||
| Financial Services (7.1%) | |||||
7,000 | American Express Co. | 292,670 | |||
8,000 | Fleet Boston Financial | 237,680 | |||
1,000 | J.P. Morgan Chase & Co. | 34,180 | |||
1,000 | Merrill Lynch & Co. | 46,680 | |||
6,000 | SLM Holding Corp. | 235,020 | |||
4,000 | U.S. Bancorp | 98,000 | |||
TOTAL | 944,230 | ||||
| Food--Diversified (1.3%) | |||||
5,000 | Kellogg Co. | 171,850 | |||
| Independent Power Producers (1.0%) | |||||
3,000 | Rockwell Automation, Inc. | 71,520 | |||
2,000 | Southern Co. | 62,320 | |||
TOTAL | 133,840 | ||||
| COMMON STOCKS, continued | |||||
| Insurance (1.3%) | |||||
2,000 | Aetna | $ 120,400 | |||
1,000 | American International Group, Inc. | 55,180 | |||
TOTAL | 175,580 | ||||
| Internet Services (0.3%) | |||||
1,000 | (1) | Symantec Corp. | 43,860 | ||
| Media (1.1%) | |||||
9,000 | (1) | AOL Time Warner, Inc. | 144,810 | ||
| Medical--Drugs (1.6%) | |||||
6,000 | Bristol-Myers Squibb Co. | 162,900 | |||
1,000 | (1) | Forest Laboratories, Inc. | 54,750 | ||
TOTAL | 217,650 | ||||
| Medical Supplies (2.5%) | |||||
1,000 | (1) | Boston Scientific Corp. | 61,100 | ||
3,000 | Johnson & Johnson | 155,100 | |||
2,000 | St. Jude Medical, Inc. | 115,000 | |||
TOTAL | 331,200 | ||||
| Metals & Mining (1.4%) | |||||
3,000 | Alcoa, Inc. | 76,500 | |||
2,000 | Weyerhaeuser Co. | 108,000 | |||
TOTAL | 184,500 | ||||
| Oil & Gas Exploration & Production (2.7%) | |||||
5,000 | Devon Energy Corp. | 267,000 | |||
2,000 | Kerr-McGee Corp. | 89,600 | |||
TOTAL | 356,600 | ||||
| Oil--Integrated Companies (1.9%) | |||||
2,000 | Conoco Phillips, Inc. | 109,600 | |||
3,000 | Enerplus Resources Fund | 69,720 | |||
2,000 | Exxon Mobil Corp. | 71,820 | |||
TOTAL | 251,140 | ||||
| Pharmaceuticals (3.1%) | |||||
4,000 | (1) | Amgen, Inc. | 267,920 | ||
1,000 | Eli Lilly & Co. | 68,970 | |||
2,000 | Pfizer, Inc. | 68,300 | |||
TOTAL | 405,190 | ||||
| Retail (2.4%) | |||||
3,000 | Home Depot, Inc. | 99,360 | |||
4,000 | Wal-Mart Stores, Inc. | 214,680 | |||
TOTAL | 314,040 | ||||
| Semiconductors (0.5%) | |||||
3,000 | Intel Corp. | 62,340 | |||
| COMMON STOCKS, continued | |||||
| Software & Computer Services (4.9%) | |||||
2,000 | (1) | Citrix Systems, Inc. | $ 40,720 | ||
5,000 | Hewlett-Packard Co. | 106,500 | |||
10,000 | Microsoft Corp. | 256,100 | |||
20,000 | (1) | Oracle Corp. | 240,400 | ||
TOTAL | 643,720 | ||||
| Toys (0.6%) | |||||
4,000 | Mattel, Inc. | 75,680 | |||
| Utilities--Electric (1.1%) | |||||
1,000 | American Electric Power | 29,830 | |||
1,000 | (1) | CMS Energy | 8,100 | ||
1,000 | Dominion Resources, Inc. | 64,270 | |||
1,000 | First Energy Corp. | 38,450 | |||
TOTAL | 140,650 | ||||
| Utilities--Energy Products (0.3%) | |||||
1,000 | PPL Corp. | 43,000 | |||
| Utilities--Gas (0.9%) | |||||
3,000 | Piedmont Natural Gas, Co. | 116,430 | |||
| Utilities--Telecommunications (4.5%) | |||||
2,000 | BellSouth Corp. | 53,260 | |||
10,000 | (1) | Cincinnati Bell, Inc. | 67,000 | ||
10,000 | (1) | Nextel Communications, Inc. | 180,800 | ||
2,000 | Qualcomm, Inc. | 71,500 | |||
1,000 | SBC Communications, Inc. | 25,550 | |||
15,000 | (1) | Sprint Corp. -- PCS Group | 86,250 | ||
3,000 | Verizon Communications, Inc. | 118,350 | |||
TOTAL | 602,710 | ||||
| TOTAL COMMON STOCKS (IDENTIFIED COST $7,428,622) | $ 8,099,182 | ||||
Principal |
|
Market | |||
| U.S. GOVERNMENT AGENCIES (32.5%) | |||||
| Federal National Mortgage Assoc. (22.8%) | |||||
$ 2,000,000 | 5.50%, 07/18/06 | $ 2,005,000 | |||
1,000,000 | 5.25%, 08/14/06 | 1,005,000 | |||
TOTAL | 3,010,000 | ||||
| U.S. Treasury Notes (9.7%) | |||||
1,122,030 | 3.875%, 01/15/09 | 1,285,072 | |||
| TOTAL U.S.GOVERNMENT AGENCIES (IDENTIFIED COST $4,130,164) | 4,295,072 | ||||
| CORPORATE BONDS (0.4%) | |||||
| Diversified Financials (0.4%) | |||||
5,000 | Citigroup, Inc., 7.0%, 05/27/05 | 50,500 | |||
| INVESTMENT COMPANIES (5.2%) | |||||
603,476 | AIM Institutional Money Market Fund | 603,476 | |||
87,355 | Merrill Lynch Money Market Fund | 87,355 | |||
| TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $690,831) | 690,831 | ||||
| TOTAL INVESTMENTS (99.4%) (4) (IDENTIFIED COST $12,299,617) | 13,135,585 | ||||
| OTHER ASSETS AND LIABILITIES, NET (0.6%) | 80,012 | ||||
| TOTAL NET ASSETS (100%) | $ 13,215,597 | ||||
Shares |
|
| Market | ||
|---|---|---|---|---|---|
| COMMON STOCKS (97.1%) | |||||
| Audio/Video Products (2.4%) | |||||
13,000 | (1) | TiVo, Inc. | $ 160,550 | ||
| Automotive Parts (0.9%) | |||||
2,000 | (1) | Gentex Corp. | 61,220 | ||
| Banks (5.5%) | |||||
2,000 | Cullen/Frost Bankers, Inc. | 64,200 | |||
2,000 | First Midwest Bancorp, Inc. | 57,620 | |||
3,000 | Hudson United Bancorp | 102,450 | |||
5,000 | UCBH Holdings, Inc. | 143,400 | |||
TOTAL | 367,670 | ||||
| Biopharmaceuticals (2.7%) | |||||
2,000 | (1) | Biosite, Inc. | 96,200 | ||
2,500 | (1) | IDEXX Laboratories, Inc. | 84,200 | ||
TOTAL | 180,400 | ||||
| Building & Construction (2.8%) | |||||
1,500 | Ryland Group | 104,100 | |||
200 | (1) | NVR, Inc. | 82,200 | ||
TOTAL | 186,300 | ||||
| Casino Services (1.0%) | |||||
4,000 | (1) | Isle of Capri Casinos | 66,120 | ||
| Chemicals--Diversified (0.4%) | |||||
1,500 | Georgia Gulf Corp. | 29,700 | |||
| Commercial Services (3.4%) | |||||
3,000 | (1) | CDI Corp. | 77,880 | ||
5,000 | (1) | MemberWorks, Inc. | 98,750 | ||
2,000 | (1) | StarTek, Inc. | 52,600 | ||
TOTAL | 229,230 | ||||
| Computers & Business (1.8%) | |||||
10,000 | (1) | CompuCom Systems, Inc. | 45,200 | ||
5,000 | (1) | Foundry Networks, Inc. | 72,000 | ||
TOTAL | 117,200 | ||||
| Computers & Peripherals (7.0%) | |||||
2,000 | (1) | Hutchison Technology | 65,780 | ||
2,000 | (1) | Kronos, Inc. | 101,620 | ||
1,500 | (1) | Pixar, Inc. | 91,260 | ||
15,000 | Quantum Corp. | 60,750 | |||
5,000 | (1) | Rainbow Technologies | 42,050 | ||
5,000 | (1) | SERENA Software, Inc. | 104,400 | ||
TOTAL | 465,860 | ||||
| Computers & Services (1.3%) | |||||
2,000 | FactSet Research Systems, Inc. | 88,100 | |||
| Consultants (1.6%) | |||||
2,500 | (1) | Charles River Associates | 70,675 | ||
2,000 | (1) | Tetra Tech, Inc. | 34,260 | ||
TOTAL | 104,935 | ||||
| Consumer Goods (1.2%) | |||||
2,000 | Toro Co. | 79,500 | |||
| Data Processing--Management (1.2%) | |||||
1,500 | Fair Isaac Corporation | 77,175 | |||
| COMMON STOCKS, continued | |||||
| Diversified (1.8%) | |||||
4,000 | New England Business Service, Inc. | $ 120,000 | |||
| Education (1.3%) | |||||
3,000 | (1) | ITT Educational Services, Inc. | 87,750 | ||
| Electronics (0.5%) | |||||
7,000 | (1) | Manufacturing Services | 33,950 | ||
| Engines (2.5%) | |||||
1,000 | Briggs and Stratton | 50,500 | |||
3,000 | Clarcor, Inc. | 115,650 | |||
TOTAL | 166,150 | ||||
| Finance (1.6%) | |||||
5,000 | (1) | CompuCredit | 60,750 | ||
1,000 | New Century Financial CP | 43,650 | |||
TOTAL | 104,400 | ||||
| Food--Baking (1.3%) | |||||
4,500 | Flowers Foods, Inc. | 88,920 | |||
| Footwear (1.5%) | |||||
3,000 | K-Swiss, Inc. -- Class A | 103,560 | |||
| Insurance (5.2%) | |||||
2,000 | First American Corp. | 52,700 | |||
2,500 | Landamerica Financial Group, Inc. | 118,750 | |||
3,000 | Odyssey Re Holdings Corp. | 63,300 | |||
4,000 | (1) | Stewart Information Services Corp. | 111,400 | ||
TOTAL | 346,150 | ||||
| Machinery (1.2%) | |||||
2,500 | Graco, Inc. | 80,000 | |||
| Management Consulting (0.8%) | |||||
7,000 | (1) | Labor Ready, Inc. | 50,190 | ||
| Manufacturing (0.7%) | |||||
2,000 | Lindsay Manufacturing Co. | 46,440 | |||
| Medical--Diagnostics Kits (1.8%) | |||||
5,000 | Meridian Bioscience | 45,550 | |||
10,000 | (1) | Orasure Technologies, Inc. | 74,600 | ||
TOTAL | 120,150 | ||||
| Medical--Drugs (3.8%) | |||||
5,000 | Alpharma, Inc. -- Class A | 108,000 | |||
1,500 | (1) | American Pharmaceutical | 50,850 | ||
2,000 | Polymedica Corp. | 91,580 | |||
TOTAL | 250,430 | ||||
| Medical--Laser Systems (0.6%) | |||||
4,000 | (1) | Biolase Technology | 42,920 | ||
| Medical--Products & Supplies (2.9%) | |||||
2,000 | Coopers Companies, Inc. | 69,540 | |||
10,000 | (1) | Dendreon Corp. | 59,400 | ||
3,500 | Mentor Corp. | 67,830 | |||
TOTAL | 196,770 | ||||
| Medical--Research and Development (1.0%) | |||||
5,000 | (1) | Parexel Intl. Corp. | 69,750 | ||
| COMMON STOCKS, continued | |||||
| Medical--Therapeutics (0.9%) | |||||
4,000 | (1) | Connetics | $ 59,880 | ||
| Office Equipment (1.7%) | |||||
5,000 | (1) | Global Imaging Systems, Inc. | 115,800 | ||
| Oil--Exploration & Production (4.6%) | |||||
3,000 | Cabot Oil & Gas Corp. -- Class A | 82,830 | |||
1,000 | (1) | Newfield Exploration Co. | 37,550 | ||
3,125 | Patina Oil & Gas Corp. | 100,469 | |||
2,000 | Pogo Producing Co. | 85,500 | |||
TOTAL | 306,349 | ||||
| Oil Field & Machinery -- (0.6%) | |||||
2,000 | (1) | Maverick Tube Corp. | 38,300 | ||
| Pharmaceuticals (3.0%) | |||||
2,000 | (1) | AdvancePCS | 76,460 | ||
4,000 | (1) | Telik, Inc. | 64,280 | ||
1,000 | Varian Medical Systems, Inc. | 57,570 | |||
TOTAL | 198,310 | ||||
| Printing & Publishing (1.0%) | |||||
3,000 | (1) | Multi-Color Corp. | 66,300 | ||
| Radio (1.5%) | |||||
2,500 | (1) | Cox Radio, Inc. Class A | 57,775 | ||
5,000 | (1) | Spanish Broadcasting System, Inc. | 40,750 | ||
TOTAL | 98,525 | ||||
| Retail Apparel (4.0%) | |||||
5,000 | (1) | American Eagle Outfitters | 90,600 | ||
10,000 | Applica, Inc. | 85,000 | |||
3,500 | Claire's Stores, Inc. | 88,760 | |||
TOTAL | 264,360 | ||||
| Retail--Furniture (1.2%) | |||||
4,000 | Pier 1 Imports, Inc. | 81,600 | |||
| Retail--Restaurants (1.5%) | |||||
2,000 | (1) | P F Chang's China Bistro, Inc. | 98,420 | ||
| COMMON STOCKS, continued | |||||
| Semiconductors (2.6%) | |||||
7,000 | (1) | August Technology | $ 44,450 | ||
5,000 | (1) | Genesis Microchip, Inc. | 67,700 | ||
2,000 | (1) | Omnivision Tech | 62,400 | ||
TOTAL | 174,550 | ||||
| Software & Computer Services (4.4%) | |||||
10,000 | (1) | AT Road, Inc. | 109,200 | ||
2,500 | (1) | Progress Software Corp. | 51,825 | ||
2,000 | (1) | SanDisk Corp. | 80,700 | ||
2,000 | (1) | United Online, Inc. | 50,680 | ||
TOTAL | 292,405 | ||||
| Telecommunications--Fiber Optics (0.4%) | |||||
7,000 | (1) | Sycamore Networks, Inc. | 26,810 | ||
| Tobacco (0.6%) | |||||
1,000 | Universal Corp. -- VA | 42,300 | |||
| Utilities--Cellular (3.4%) | |||||
10,000 | (1) | American Tower Corp. | 88,500 | ||
3,000 | (1) | Boston Communications Group, Inc. | 51,390 | ||
5,000 | (1) | Filenet, Corp. | 90,200 | ||
TOTAL | 230,090 | ||||
| Utilities--Gas (2.2%) | |||||
2,000 | Energen | 66,600 | |||
2,000 | Equitable Resources, Inc. | 81,480 | |||
TOTAL | 148,080 | ||||
| Utilities--Telecom Services (0.7%) | |||||
1,000 | Commonwealth Telephone | 43,970 | |||
| Wireless--Equipment (1.1%) | |||||
5,000 | (1) | Viasat, Inc. | 71,700 | ||
| TOTAL COMMON STOCKS (IDENTIFIED COST $5,316,619) | 6,479,239 | ||||
| INVESTMENT COMPANIES (3.1%) | |||||
204,327 | AIM Institutional Money Market Fund (at net asset value) | 204,327 | |||
| TOTAL INVESTMENTS (100.2%) (4) (IDENTIFIED COST $5,520,946) | 6,683,566 | ||||
| OTHER ASSETS AND LIABILITIES, NET (0.2%) | (11,671) | ||||
| TOTAL NET ASSETS (100%) | $ 6,671,895 | ||||
Shares |
|
| Market | ||
|---|---|---|---|---|---|
| COMMON STOCKS (94.7%) | |||||
| Aerospace--Defense (1.5%) | |||||
2,500 | (1) | Lockheed Martin Corp. | 118,925 | ||
1,800 | United Technologies Corp. | 127,494 | |||
TOTAL | 246,419 | ||||
| Automotive--Parts (1.4%) | |||||
2,700 | Johnson Controls, Inc. | 231,120 | |||
| Banks (19.1%) | |||||
6,600 | Bank of America Corp. | 521,598 | |||
8,200 | Bank One Corp. | 304,876 | |||
2,200 | Capital One Financial Co. | 108,196 | |||
19,200 | Citigroup, Inc. | 821,760 | |||
4,000 | Compass Bancshares, Inc. | 139,720 | |||
3,600 | Suntrust Banks, Inc. | 213,624 | |||
7,200 | Union Planters Corp. | 223,416 | |||
10,000 | Wachovia Corp. | 399,600 | |||
9,200 | Wells Fargo & Co. | 463,680 | |||
TOTAL | 3,196,470 | ||||
| Cable Television (1.6%) | |||||
9,000 | Comcast Corp. -- Class A (1) | 271,620 | |||
| Computer & Peripherals (4.1%) | |||||
24,000 | EMC Corp. -- Mass. | 251,280 | |||
16,500 | Hewlett-Packard Co. | 351,450 | |||
950 | International Business Machines Corp. | 78,375 | |||
TOTAL | 681,105 | ||||
| Consumer Goods & Services (1.0%) | |||||
4,500 | (1) | Cendant Corp. | 82,440 | ||
900 | Procter & Gamble Co. | 80,262 | |||
TOTAL | 162,702 | ||||
| Diversified (4.4%) | |||||
3,600 | DuPont | 149,904 | |||
7,300 | General Electric Co. | 209,364 | |||
20,000 | Tyco International, Ltd. | 379,600 | |||
TOTAL | 738,868 | ||||
| Entertainment (1.6%) | |||||
13,650 | Walt Disney Co. | 269,588 | |||
| Finance--Investment Banker/Broker (1.4%) | |||||
1,250 | Freddie Mac | 63,463 | |||
2,100 | Goldman Sachs Group, Inc. | 175,875 | |||
TOTAL | 239,338 | ||||
| Financial Services (11.5%) | |||||
9,030 | Chartered One Financial, Inc. | 281,555 | |||
2,500 | First Tennessee National Corp. | 109,775 | |||
7,600 | Fleet Boston Financial Corp. | 225,796 | |||
9,800 | J.P. Morgan Chase & Co. | 334,964 | |||
4,000 | Mellon Financial Corp. | 111,000 | |||
| COMMON STOCKS, continued | |||||
| Financial Services, continued | |||||
2,350 | Merrill Lynch & Co., Inc. | 109,698 | |||
6,500 | Southtrust Corp. | 176,800 | |||
4,000 | State Street Corp. | 157,600 | |||
10,000 | U.S. Bancorp | 245,000 | |||
4,200 | Washington Mutual, Inc. | 173,460 | |||
TOTAL | 1,925,648 | ||||
| Food (1.3%) | |||||
4,400 | ConAgra Foods, Inc. | 103,840 | |||
3,425 | H.J. Heinz Co. | 112,956 | |||
TOTAL | 216,796 | ||||
| Independent Power Producer (0.9%) | |||||
6,500 | Rockwell Automation, Inc. | 154,960 | |||
| Insurance (4.8%) | |||||
5,000 | Allstate Corp. | 178,250 | |||
9,500 | American International Group, Inc. | 524,210 | |||
3,500 | John Hancock Financial Services, Inc. | 107,555 | |||
TOTAL | 810,015 | ||||
| Media (5.0%) | |||||
37,100 | (1) | AOL Time Warner, Inc. | 596,939 | ||
5,500 | (1) | Viacom, Inc. -- Class A | 240,350 | ||
TOTAL | 837,289 | ||||
| Medical--Drugs (1.0%) | |||||
6,300 | Bristol-Myers Squibb Co. | 171,045 | |||
| Medical--HMO (0.5%) | |||||
1,000 | (1) | Wellpoint Health Networks | 84,300 | ||
| Medical Supplies (0.9%) | |||||
3,000 | Johnson & Johnson | 155,100 | |||
| Metals & Mining (1.4%) | |||||
4,400 | Weyerhaeuser Co. | 237,600 | |||
| Oil & Gas Exploration, Production & Services (2.3%) | |||||
4,600 | Devon Energy Corp. | 245,640 | |||
3,000 | Kerr-McGee Corp. | 134,400 | |||
TOTAL | 380,040 | ||||
| Oil--Integrated Companies (7.8%) | |||||
2,900 | ChevronTexaco Corp. | 209,380 | |||
4,677 | Conoco Phillips, Inc. | 256,300 | |||
8,150 | Enerplus Resources Fund | 189,406 | |||
18,300 | Exxon Mobil Corp. | 657,153 | |||
TOTAL | 1,312,239 | ||||
| Pharmaceuticals (2.2%) | |||||
2,800 | Eli Lilly & Co. | 193,116 | |||
2,400 | Merck & Co., Inc. | 145,320 | |||
1,900 | (1) | Tenet Healthcare | 22,135 | ||
TOTAL | 360,571 | ||||
Shares |
|
| Market | ||
| COMMON STOCKS, continued | |||||
| Retail (5.0%) | |||||
11,900 | Home Depot, Inc. | $ 394,127 | |||
9,800 | J.C. Penney Co. | 165,130 | |||
3,800 | Target Corp. | 143,792 | |||
2,600 | Wal-Mart Stores, Inc. | 139,542 | |||
TOTAL | 842,591 | ||||
| Semiconductors (0.5%) | |||||
5,000 | Texas Instruments, Inc. | 88,000 | |||
| Software & Computer Services (0.8%) | |||||
2,600 | (1) | BMC Software, Inc. | 42,458 | ||
6,500 | (1) | VeriSign, Inc. | 89,895 | ||
TOTAL | 132,353 | ||||
| Telecommunications--Equipment (1.9%) | |||||
69,600 | (1) | Lucent Technologies, Inc. | 141,288 | ||
5,200 | Nokia Corp. | 85,436 | |||
3,500 | Scientific-Atlanta, Inc. | 83,440 | |||
TOTAL | 310,164 | ||||
| Telecommunications--Fiber Optics (0.4%) | |||||
10,000 | (1) | Corning, Inc. | 73,900 | ||
| Toys (0.5%) | |||||
2,400 | (1) | Leapfrog Enterprises, Inc. | 76,344 | ||
| Transportation Services (0.7%) | |||||
2,000 | Fed-Ex Corp. | 124,060 | |||
| Utilities--Energy Products (2.9%) | |||||
8,700 | BellSouth Corp. | 231,681 | |||
5,700 | PPL Corp. | 245,100 | |||
TOTAL | 476,781 | ||||
Principal | Market | ||||
| COMMON STOCKS, continued | |||||
| Utilities--Electric (2.0%) | |||||
1,100 | Dominion Resources, Inc. | $ 70,697 | |||
2,500 | Exelon Corp. | 149,525 | |||
1,600 | FPL Group, Inc. | 106,960 | |||
TOTAL | 327,182 | ||||
| Utilities--Gas (0.9%) | |||||
3,700 | Piedmont Natural Gas Co. | 143,597 | |||
| Utilities--Telecommunications (3.4%) | |||||
20,000 | (1) | AT&T Wireless Services, Inc. | 164,200 | ||
10,100 | SBC Communications, Inc. | 258,055 | |||
3,800 | Verizon Communications, Inc. | 149,910 | |||
TOTAL | 572,165 | ||||
| TOTAL COMMON STOCKS (IDENTIFIED COST $15,151,074) | 15,849,970 | ||||
| CORPORATE BONDS (1.2%) | |||||
| Diversified Financials (1.2%) | |||||
$ 20,000 | Citigroup, Inc., 7.00%, 05/27/05 | 202,000 | |||
| INVESTMENT COMPANIES (4.2%) | |||||
710,765 | AIM Institutional Money Market Fund (at net asset value) | 710,765 | |||
| TOTAL INVESTMENTS (100.2%) (4) (IDENTIFIED COST $16,061,839) | 16,762,735 | ||||
| OTHER ASSETS AND LIABILITIES, NET (0.2%) | (35,318) | ||||
| TOTAL NET ASSETS (100.0%) | $ 16,727,417 | ||||
Principal |
| Market | ||
|---|---|---|---|---|
| CORPORATE BONDS (8.7%) | ||||
| Diversified Financials (8.7%) | ||||
$ 2,000,000 | Citigroup, Inc., 5.625%, 08/27/12 | $ 2,202,500 | ||
2,000,000 | General Electric Capital Corp., | 2,167,500 | ||
| TOTAL CORPORATE BONDS (IDENTIFIED COST $4,458,448) | 4,370,000 | |||
| U.S. GOVERNMENT AGENCIES (51.9%) | ||||
| Federal Home Loan Mortgage Corp. (16.3%) | ||||
2,000,000 | 2.875%, 09/15/05 | 2,060,000 | ||
2,000,000 | 2.375%, 04/15/06 | 2,032,500 | ||
2,000,000 | 3.50%, 09/15/07 | 2,090,000 | ||
2,000,000 | 2.75%, 03/15/08 | 2,017,500 | ||
TOTAL | 8,200,000 | |||
| Federal National Mortgage Association (35.6%) | ||||
2,000,000 | 2.875%, 10/15/05 | 2,060,000 | ||
2,000,000 | 2.125%, 04/15/06 | 2,020,000 | ||
2,000,000 | 2.25%, 05/15/06 | 2,027,500 | ||
2,000,000 | 3.25%, 11/15/07 | 2,072,500 | ||
2,000,000 | 2.50%, 06/15/08 | 1,990,000 | ||
790,939 | 6.00%, 04/01/13 Pool#424320 | 827,410 | ||
1,001,583 | 6.00%, 06/01/14 Pool#323780 | 1,047,235 | ||
1,428,970 | 5.50%, 02/01/17 Pool#614771 | 1,484,600 | ||
1,300,514 | 5.50%, 09/01/17 Pool#646557 | 1,350,975 | ||
1,792,609 | 5.50%, 01/01/18 Pool#E93617 | 1,859,259 | ||
1,172,220 | 5.50%, 04/01/24 Pool#280553 | 1,218,464 | ||
TOTAL | 17,957,943 | |||
| TOTAL U.S. GOVERNMENT AGENCIES (IDENTIFIED COST $26,023,414) | 30,527,943 | |||
Principal |
| Market | ||
| U.S. TREASURY NOTES (29.4%) | ||||
$ 2,000,000 | 2.00%, 05/15/06 | $ 2,022,500 | ||
2,000,000 | 4.625%, 05/15/06 | 2,168,040 | ||
2,000,000 | 3.50%, 11/15/06 | 2,108,200 | ||
2,000,000 | 4.375%, 05/15/07 | 2,172,500 | ||
2,000,000 | 3.25%, 08/15/07 | 2,087,260 | ||
2,000,000 | 3.00%, 11/15/07 | 2,062,960 | ||
2,000,000 | 4.75%, 11/15/08 | 2,217,100 | ||
| TOTAL U.S. TREASURY NOTES (IDENTIFIED COST $14,552,238) | 14,838,560 | |||
| INVESTMENT COMPANIES (9.8%) | ||||
2,482,762 | AIM Institutional Money Market Fund (at net asset value) | 2,482,762 | ||
2,436,610 | Merrill Lynch Money Market Fund (at net asset value) | 2,436,610 | ||
| TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $4,919,372) | 4,919,372 | |||
| TOTAL INVESTMENTS (99.8%) (4) (IDENTIFIED COST $49,953,471) | 50,285,875 | |||
| OTHER ASSETS AND LIABILITIES, NET (0.2%) | 87,063 | |||
| TOTAL NET ASSETS (100%) | $ 50,372,938 | |||
Principal |
|
| Market | ||
|---|---|---|---|---|---|
| U.S. GOVERNMENT AGENCIES (90.1%) | |||||
| Federal Agricultural Mortgage Corp. (13.7%) | |||||
$ 6,000,000 | (3) | 1.154%, 07/07/03 | $ 5,998,850 | ||
6,000,000 | (3) | 1.163%, 07/11/03 | 5,998,067 | ||
6,000,000 | (3) | 1.179%, 07/14/03 | 5,997,454 | ||
6,000,000 | (3) | 1.184%, 07/29/03 | 5,994,493 | ||
6,000,000 | (3) | 1.086%, 09/10/03 | 5,987,196 | ||
TOTAL | 29,976,060 | ||||
| Federal Home Loan Bank (8.2%) | |||||
6,000,000 | (3) | 1.193%, 07/18/03 | 5,996,628 | ||
6,000,000 | (3) | 1.148%, 08/08/03 | 5,992,748 | ||
6,000,000 | (3) | 1.133%, 08/20/03 | 5,990,584 | ||
TOTAL | 17,979,960 | ||||
| Federal Home Loan Mortgage Corp. (27.3%) | |||||
6,000,000 | (3) | 1.131%, 07/15/03 | 5,997,352 | ||
6,000,000 | (3) | 1.184%, 07/24/03 | 5,995,473 | ||
6,000,000 | (3) | 1.174%, 07/31/03 | 5,994,150 | ||
6,000,000 | (3) | 1.191%, 08/01/03 | 5,993,877 | ||
6,000,000 | (3) | 1.036%, 08/05/03 | 5,993,933 | ||
6,000,000 | (3) | 1.023%, 08/25/03 | 5,990,623 | ||
6,000,000 | (3) | 1.023%, 09/11/03 | 5,987,760 | ||
6,000,000 | (3) | 0.963%, 09/17/03 | 5,987,520 | ||
6,000,000 | (3) | 0.949%, 10/31/03 | 5,980,683 | ||
6,000,000 | (3) | 0.956%, 11/06/03 | 5,979,733 | ||
TOTAL | 59,901,104 | ||||
| U.S. GOVERNMENT AGENCIES, continued | |||||
| Federal National Mortgage Association (40.9%) | |||||
$ 6,000,000 | (3) | 1.207%, 07/02/03 | $ 5,999,800 | ||
6,000,000 | (3) | 1.202%, 07/09/03 | 5,998,400 | ||
6,000,000 | (3) | 1.193%, 07/16/03 | 5,997,025 | ||
6,000,000 | (3) | 1.160%, 07/23/03 | 5,995,747 | ||
6,000,000 | (3) | 1.166%, 07/25/03 | 5,995,320 | ||
12,000,000 | (3) | 1.171%, 07/30/03 | 11,988,690 | ||
6,000,000 | (3) | 1.143%, 08/06/03 | 5,993,160 | ||
6,000,000 | (3) | 1.163%, 08/13/03 | 5,991,687 | ||
6,000,000 | (3) | 1.196%, 08/18/03 | 5,990,480 | ||
6,000,000 | (3) | 1.148%, 08/20/03 | 5,990,458 | ||
6,000,000 | (3) | 1.173%, 08/27/03 | 5,988,885 | ||
6,000,000 | (3) | 0.983%, 09/24/03 | 5,986,117 | ||
6,000,000 | (3) | 1.045%, 09/30/03 | 5,984,227 | ||
6,000,000 | (3) | 0.877%, 12/17/03 | 5,975,495 | ||
TOTAL | 89,875,490 | ||||
| TOTAL U.S. GOVERNMENT AGENCIES | 197,732,615 | ||||
| (2) REPURCHASE AGREEMENTS (10.0%) | |||||
22,056,000 | Morgan Stanley Dean Witter & Co., 1.10%, dated 06/30/03, to be repurchased $22,056,674 on 07/01/03 (Collateralized by U.S. Government Agency Securities with various maturities to 01/15/2030) | 22,056,000 | |||
| TOTAL INVESTMENTS (100.1%) (4) (AMORTIZED COST $219,788,615) | 219,788,615 | ||||
| OTHER ASSETS AND LIABILITIES, NET (0.1%) | (148,081) | ||||
| TOTAL NET ASSETS (100%) | $ 219,640,534 | ||||
(1) Non-income producing.
(2) The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio.
(3) Because of monthly principal payments, the average lives of certain government securities are less than the indicated periods.
(4) Cost of Investments:
For Federal Tax Purposes | Cost of | |
|---|---|---|
| Large Company Select Fund | $ 28,092,574 | |
| Balanced Fund | 12,299,617 | |
| Small Company Select Fund | 5,520,946 | |
| Select Value Fund | 16,061,839 | |
| U.S. Government Income Fund | 49,953,471 | |
| U.S. Government Securities Money Market Fund | 219,788,615 |
* The categories of investments are shown as a percentage of net assets at June 30, 2003.
| Large Company | Balanced | Small Company | |||
|---|---|---|---|---|---|---|
Assets: | ||||||
Investments, at value (Cost $28,092,574, $12,299,617 and $5,520,946, respectively) | $ 28,264,425 | $ 13,135,585 | $ 6,683,566 | |||
Interest and dividends receivable | 22,855 | 99,607 | 1,279 | |||
Receivable for capital shares issued | 8,057 | 13,077 | 75 | |||
Receivable for investments sold | -- | -- | 32,443 | |||
Prepaid expenses and other assets | 11,717 | 9,796 | 7,608 | |||
Total Assets | 28,307,054 | 13,258,065 | 6,724,971 | |||
Liabilities: | ||||||
Payable for capital shares redeemed | 7,853 | 15,464 | 13,873 | |||
Payable for securities purchased | -- | -- | 24,720 | |||
Accrued expenses and other payables: | ||||||
Investment advisory fees | 18,843 | 8,827 | 4,383 | |||
Administration fees | 4,124 | 1,903 | 925 | |||
Custodian and accounting fees | 3,909 | 2,171 | 1,572 | |||
Distribution fees | 5,147 | 6,411 | 713 | |||
Transfer agent fees | 9,188 | 4,111 | 5,911 | |||
Audit and legal fees | 3,157 | 1,274 | 685 | |||
Other | 2,167 | 2,307 | 294 | |||
Total Liabilities | 54,388 | 42,468 | 53,076 | |||
Net Assets: | ||||||
Capital | 52,537,209 | 17,567,120 | 14,029,880 | |||
Accumulated undistributed net investment income | -- | 17,554 | -- | |||
Net unrealized appreciation/(depreciation) on investments | 171,851 | 835,969 | 1,162,620 | |||
Accumulated net realized losses and distributions in excess of realized gains | (24,456,394) | (5,205,046) | (8,520,605) | |||
Net Assets | $ 28,252,666 | $ 13,215,597 | $ 6,671,895 | |||
Net assets | ||||||
Investor A Shares | $ 18,645,411 | $ 7,313,519 | $ 6,101,542 | |||
Investor B Shares | 9,607,255 | 5,902,078 | 570,353 | |||
Total | $ 28,252,666 | $ 13,215,597 | $ 6,671,895 | |||
Shares of capital stock | ||||||
Investor A Shares | 2,592,626 | 800,164 | 1,641,245 | |||
Investor B Shares | 1,411,140 | 619,426 | 153,143 | |||
Total | 4,003,766 | 1,419,590 | 1,794,388 | |||
Net asset value | ||||||
Investor A Shares--redemption price per share | $ 7.19 | $ 9.14 | $ 3.72 | |||
Investor B Shares--offering price per share* | $ 6.81 | $ 9.53 | $ 3.72 | |||
Maximum sales charge (Investor A Shares) | 4.50 % | 4.50 % | 4.50 % | |||
Maximum offering price per share (Investor A Shares)** | $ 7.53 | $ 9.57 | $ 3.90 | |||
* Redemption price of Investor B Shares varies based on length of time shares are held.
** (100%/(100%-maximum sales charge) of net asset value adjusted to nearest cent)
See Notes which are an integral part of the Financial Statements
| Select | U.S. Government | U.S. Government | |||
|---|---|---|---|---|---|---|
Assets: | ||||||
Investments, at value (Cost $16,061,839, $49,953,471 and $197,732,615 respectively) | $ 16,762,735 | $ 50,285,875 | $ 197,732,615 | |||
Repurchase agreements (Cost $0, $0, and $22,056,000 respectively) | -- | -- | 22,056,000 | |||
Total investments | 16,762,735 | 50,285,875 | 219,788,615 | |||
Cash | -- | -- | 779 | |||
Interest and dividends receivable | 23,745 | 319,741 | 830 | |||
Receivable for capital shares issued | 198 | 27,876 | 153,183 | |||
Prepaid expenses and other assets | 16,794 | 6,381 | 4,624 | |||
Total Assets | 16,803,472 | 50,639,873 | 219,948,031 | |||
Liabilities: | ||||||
Dividends payable | -- | 59,439 | 88,429 | |||
Payable for capital shares redeemed | 36,980 | 156,546 | 83,606 | |||
Accrued expenses and other payables: | -- | |||||
Investment advisory fees | 11,978 | 16,572 | 26,347 | |||
Administration fees | 2,294 | 7,002 | 29,130 | |||
Custodian and accounting fees | 2,591 | 5,837 | 9,027 | |||
Distribution fees | 4,082 | 13,549 | 35,151 | |||
Transfer agent fees | 5,489 | 3,496 | 3,833 | |||
Audit and legal fees | 2,381 | 2,363 | 6,230 | |||
Other | 10,260 | 2,131 | 25,744 | |||
Total Liabilities | 76,055 | 266,935 | 307,497 | |||
Net Assets: | ||||||
Capital | 30,302,039 | 48,436,621 | 219,640,537 | |||
Accumulated undistributed net investment income | -- | 124,228 | -- | |||
Net unrealized appreciation/(depreciation) on investments | 700,896 | 332,404 | -- | |||
Accumulated net realized gains/(losses) and distributions in excess of realized gains | (14,275,518) | 1,479,685 | (3) | |||
Net Assets | $ 16,727,417 | $ 50,372,938 | $ 219,640,534 | |||
Net assets | ||||||
Investor A Shares | $ 13,555,260 | $ 45,576,718 | $ 175,072,221 | |||
Investor B/Institutional Shares | 3,172,157 | 4,796,220 | 44,568,313 | |||
Total | $ 16,727,417 | $ 50,372,938 | $ 219,640,534 | |||
Shares of capital stock | ||||||
Investor A Shares | 1,828,460 | 4,604,146 | 175,072,221 | |||
Investor B/Institutional Shares | 428,426 | 414,569 | 44,568,313 | |||
Total | 2,256,886 | 5,018,715 | 219,640,534 | |||
Net asset value* | ||||||
Investor A Shares--redemption price per share | $ 7.41 | $ 9.90 | $ 1.00 | |||
Investor B/Institutional Shares--offering price per share* | $ 7.40 | $ 11.57 | $ 1.00 | |||
Maximum sales charge (Investor A Shares) | 4.50 % | 4.50 % | N/A | |||
Maximum offering price per share (Investor A Shares)** | $ 7.76 | $ 10.37 | $ 1.00 | |||
* Redemption price of Investor B Shares varies based on length of time shares are held.
** (100%/(100%-maximum sales charge) of net asset value adjusted to nearest cent)
See Notes which are an integral part of the Financial Statements
| Large Company | Balanced | Small Company | |||
|---|---|---|---|---|---|---|
Investment Income: | ||||||
Interest income | $ 1,445 | $ 98,819 | $ -- | |||
Dividend income | 185,456 | 75,127 | 15,866 | |||
Total Income | 186,901 | 173,946 | 15,866 | |||
Expenses: | ||||||
Investment advisory fees (Note 5) | 107,610 | 57,791 | 23,290 | |||
Administration fees | 22,867 | 10,916 | 4,949 | |||
Distribution services fee (Investor A Shares) | 22,116 | 8,106 | 6,618 | |||
Distribution services and shareholder service fees (Investor B Shares) | 46,048 | 31,791 | 2,640 | |||
Custodian and accounting fees (Note 5) | 20,982 | 11,104 | 6,189 | |||
Audit and legal fees | 3,542 | 1,852 | 748 | |||
Trustees' fees and expenses | 4,642 | 1,916 | 925 | |||
Transfer agent fees (Note 5) | 49,249 | 23,348 | 33,234 | |||
Registration and filing fees | -- | -- | -- | |||
State registration fees | 13,604 | 13,299 | 13,494 | |||
Printing costs | 4,737 | 1,976 | 1,063 | |||
Other | 2,425 | 2,052 | 1,921 | |||
Total Expenses | 297,822 | 164,151 | 95,071 | |||
Waivers | ||||||
Waiver of investment advisory fees (Note 5) | -- | (6,424) | -- | |||
Net Expenses | 297,822 | 157,727 | 95,071 | |||
Net Investment Income (Net operating loss) | (110,921) | 16,219 | (79,205) | |||
Realized/Unrealized Gains (Losses) from Investments: | ||||||
Net realized losses from investment transactions | (1,608,093) | (233,135) | (104,527) | |||
Net change in unrealized appreciation/(depreciation) from investments | 3,903,680 | 1,071,961 | 1,066,714 | |||
Net realized/unrealized gains from investments | 2,295,587 | 838,826 | 962,187 | |||
Change in net assets resulting from operations | $ 2,184,666 | $ 855,045 | $ 882,982 | |||
See Notes which are an integral part of the Financial Statements
| Select | U.S. Government | U.S. Government | |||
|---|---|---|---|---|---|---|
Investment Income: | ||||||
Interest income | $ 439 | $ 721,549 | $ 1,380,284 | |||
Dividend income | 166,030 | 11,676 | 1,689 | |||
Total Income | 166,469 | 733,225 | 1,381,973 | |||
| ||||||
Expenses: | ||||||
Investment advisory fees (Note 5) | 71,868 | 97,527 | 161,024 | |||
Administration fees | 12,861 | 41,448 | 179,633 | |||
Distribution services fee (Investor A Shares) | 14,761 | 54,633 | 222,213 | |||
Distribution services and shareholder service fees (Investor B Shares) | 16,606 | 25,284 | -- | |||
Custodian and accounting fees (Note 5) | 12,980 | 27,137 | 54,921 | |||
Audit and legal fees | 273 | 6,170 | 31,722 | |||
Trustees' fees and expenses | 1,933 | 6,396 | 31,482 | |||
Transfer agent fees (Note 5) | 27,837 | 20,939 | 18,454 | |||
Registration and filing fees | -- | -- | -- | |||
State registration fees | 13,500 | 13,763 | 15,897 | |||
Printing costs | 1,731 | 6,800 | 24,684 | |||
Other | 2,281 | 2,415 | 4,835 | |||
Total Expenses | 176,631 | 302,512 | 744,865 | |||
Waivers | ||||||
Waiver of investment advisory fees (Note 5) | (7,565) | -- | -- | |||
Net Expenses | 169,066 | 302,512 | 744,865 | |||
Net Investment Income/(Net Operating Loss) | (2,597) | 430,713 | 637,108 | |||
| ||||||
Realized/Unrealized Gains (Losses) from Investments: | ||||||
Net realized gains (losses) from investment transactions | (781,273) | 1,186,308 | -- | |||
Net change in unrealized appreciation/(depreciation) from investments | 2,640,490 | (489,606 ) | -- | |||
Net realized/unrealized gains (losses) from investments | 1,859,217 | 696,702 | -- | |||
Change in net assets resulting from operations | $ 1,856,620 | $ 1,127,415 | $ 637,108 | |||
See Notes which are an integral part of the Financial Statements
| Large Company | Balanced | Small Company | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Six Months | Year Ended | Six Months | Year Ended | Six Months | Year Ended | ||||||
Increase (Decrease) in Net Assets: | ||||||||||||
Operations: | ||||||||||||
Net investment income (net operating loss) | $ (110,921) | $ (401,410) | $ 16,219 | $ 39,438 | $ (79,205) | $ (199,317) | ||||||
Net realized losses from investment transactions | (1,608,093) | (11,384,263) | (233,135) | (1,963,744) | (104,527) | (3,389,885) | ||||||
Net change in unrealized appreciation/(depreciation) from investments | 3,903,680 | (1,246,576) | 1,071,961 | (956,228) | 1,066,714 | 922,962 | ||||||
Change in net assets resulting from operations | 2,184,666 | (13,032,249) | 855,045 | (2,880,534) | 882,982 | (2,666,240) | ||||||
| ||||||||||||
Distributions to Shareholders: | ||||||||||||
Distributions from net investment income: | ||||||||||||
Investor A Shares | -- | -- | -- | (38,112) | -- | -- | ||||||
Investor B Shares | -- | -- | -- | -- | -- | -- | ||||||
Change in net assets resulting from distributions to shareholders | -- | -- | -- | (38,112) | -- | -- | ||||||
Capital Transactions: | ||||||||||||
Proceeds from sales of shares | 1,339,721 | 10,455,211 | 1,676,860 | 1,261,479 | 564,905 | 481,039 | ||||||
Dividends reinvested | -- | -- | -- | 37,503 | -- | -- | ||||||
Cost of shares redeemed | (2,875,240) | (22,781,092) | (2,588,945) | (6,169,034) | (402,024) | (3,000,903) | ||||||
Change in net assets from capital transactions | (1,535,519) | (12,325,881) | (912,085) | (4,870,052) | 162,881 | (2,519,864) | ||||||
Change in net assets | 649,147 | (25,358,130) | (57,040) | (7,788,698) | 1,045,863 | (5,186,104) | ||||||
Net Assets: | ||||||||||||
Beginning of period | 27,603,519 | 52,961,649 | 13,272,637 | 21,061,335 | 5,626,032 | 10,812,136 | ||||||
End of period | $ 28,252,666 | $ 27,603,519 | $ 13,215,597 | $ 13,272,637 | $ 6,671,895 | $ 5,626,032 | ||||||
Accumulated undistributed net investment income | $ -- | $ -- | $ 17,554 | $ 1,335 | $ -- | $ -- | ||||||
See Notes which are an integral part of the Financial Statements
| Select Value | U.S. Government | U.S. Government | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Six Months | Year Ended | Six Months | Year Ended | Six Months | Year Ended | ||||||
Increase (Decrease) in Net Assets: | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ (2,597) | $ 31,499 | $ 430,713 | $ 1,626,682 | $ 637,108 | $ 2,511,702 | ||||||
Net realized gains (losses) from investment transactions | (781,273) | (6,257,791) | 1,186,308 | 1,737,729 | -- | -- | ||||||
Net change in unrealized appreciation/(depreciation) from investments | 2,640,490 | 668,937 | (489,606) | 178,269 | -- | -- | ||||||
Change in net assets resulting from operations | 1,856,620 | (5,557,355) | 1,127,415 | 3,542,680 | 637,108 | 2,511,702 | ||||||
| ||||||||||||
Distributions to Shareholders: | ||||||||||||
Distributions from net investment income: | ||||||||||||
Investor A Shareholders | -- | (31,502) | (409,903) | (1,553,187) | (463,869) | (1,970,598) | ||||||
Investor B Shareholders | -- | -- | (20,817) | (72,317) | -- | -- | ||||||
Institutional Shareholders | -- | -- | -- | -- | (173,239) | (541,104) | ||||||
Distributions from net realized gains on investments: | ||||||||||||
Investor A Shareholders | -- | -- | -- | (1,214,635) | -- | -- | ||||||
Investor B Shareholders | -- | -- | -- | (107,739) | -- | -- | ||||||
Institutional Shareholders | -- | -- | -- | -- | -- | -- | ||||||
Change in net assets resulting from distributions to shareholders | -- | (31,502) | (430,720) | (2,947,878) | (637,108) | (2,511,702) | ||||||
Capital Transactions: | ||||||||||||
Proceeds from sale of shares | 2,545,282 | 4,269,595 | 4,609,346 | 18,317,041 | 462,925,601 | 1,086,973,864 | ||||||
Dividends reinvested | 20 | 29,342 | 98,712 | 828,752 | 225,659 | 716,717 | ||||||
Cost of shares redeemed | (2,051,654) | (9,311,003) | (3,888,953) | (18,409,290) | (463,665,097) | (1,074,463,791) | ||||||
Change in net assets from capital transactions | 493,648 | (5,012,066) | 819,105 | 736,503 | (513,837) | 13,226,790 | ||||||
Change in net assets | 2,350,268 | (10,600,923) | 1,515,800 | 1,331,305 | (513,837) | 13,226,790 | ||||||
Net Assets: | ||||||||||||
Beginning of period | 14,377,149 | 24,978,072 | 48,857,138 | 47,525,833 | 220,154,371 | 206,927,581 | ||||||
End of period | $ 16,727,417 | $ 14,377,149 | $ 50,372,938 | $ 48,857,138 | $ 219,640,534 | $ 220,154,371 | ||||||
Accumulated undistributed net investment income | $ -- | $ -- | $ 124,228 | $ 124,235 | $ -- | $ -- | ||||||
See Notes which are an integral part of the Financial Statements
1. Organization:
The Riverfront Funds, Inc. was organized on March 27, 1990, and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end, management investment company. Effective December 29, 1998, The Riverfront Funds, Inc., changed its form of organization from that of a Maryland corporation to an Ohio business trust by completing a reorganization with and into The Riverfront Funds, an Ohio business trust (the "Trust"), created for such purpose. The Trust consists of six portfolios (individually referred to as the "Fund", or collectively as the "Funds") as follows: The Riverfront Large Company Select Fund, The Riverfront Balanced Fund, The Riverfront Small Company Select Fund, The Riverfront Select Value Fund, The Riverfront U.S. Government Income Fund and The Riverfront U.S. Government Securities Money Market Fund.
Portfolio Name | Investment Objective | |
RIVERFRONT Large Company Select Fund | Seeks long-term growth of capital with current income as a | |
RIVERFRONT Balanced Fund | Seeks long-term growth of capital with some current income as a secondary objective. | |
RIVERFRONT Small Company Select Fund | Seeks capital growth. | |
RIVERFRONT Select Value Fund | Seeks to achieve long-term growth of capital. | |
RIVERFRONT U.S. Government Income Fund | Seeks a high level of current income consistent with the preservation of capital, by investing primarily in securities issued or guaranteed by the U.S. government, its agencies and instrumentalities and in high quality fixed rate and adjustable rate mortgage-backed securities and other asset-backed securities. | |
RIVERFRONT U.S. Government Securities Money Market Fund | Seeks current income from short-term U.S. government securities while preserving capital and maintaining liquidity. | |
The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.
The Large Company Select Fund, the Balanced Fund, the Small Company Select Fund, the Select Value Fund and the U.S. Government Income Fund each offer two share classes: Investor A Shares and Investor B Shares. The U.S. Government Securities Money Market Fund also offers two classes of shares: Investor A Shares and Institutional Shares.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP"), in the United States of America.
2. Significant Accounting Policies, continued:
Investment Valuation:
Municipal bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue and any other factors or market data the pricing service deems relevant. U.S. government securities, listed corporate bonds, and other fixed income and asset backed securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Listed equity securities are valued at the last sale price reported on a national securities exchange. U.S. Government Securities Money Market Fund uses the amortized cost method to value portfolio securities in accordance with Rule 2a-7 under the 1940 Act. For Large Company Select Fund, Balanced Fund, Small Company Select Fund, Select Value Fund and U.S. Government Income Fund, short-term securities purchased with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair market value. Securities for which no quotations are readily available are valued at fair value as determined in good faith under procedures adopted by the Board of Trustees of the Trust (the "Trustees"). Investments in other open-end regulated investment companies are valued at net asset value.
Repurchase Agreements:
It is the policy of the Funds to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Trust to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.
The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Funds' adviser to be creditworthy pursuant to the guidelines and/or standards reviewed with, or established by, the Trustees. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly the Funds may receive less than the repurchased price on the sale of collateral securities. The Funds may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.
Investment Income, Expenses and Distributions:
Interest income and expenses are accrued daily. Gains and losses realized on pre-payment of mortgage-backed securities (paydown gains and losses) are classified as part of interest income. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. Each of the Funds offer two classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Funds based on average daily net assets of each class, without distinction between share classes. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Distributions in excess of net investment income were a result of certain book and tax timing differences. These distributions do not represent a return of capital for federal income tax purposes.
Premium and Discount Amortization
All premiums and discounts on fixed income securities are amortized/accreted for financial reporting purposes.
2. Significant Accounting Policies, continued:
Federal Taxes:
It is each Fund's policy to comply with the Sub chapter M provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and to distribute to shareholders each year substantially all of their income. Accordingly, no provision for federal tax is necessary.
When-Issued and Delayed Delivery Transactions:
The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Use of Estimates:
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Other:
Investment transactions are accounted for on a trade date basis.
3. Shares of Beneficial Interest:
The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in shares were as follows:
| Large Company Select Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 160,847 | $ 1,087,567 | 1,392,941 | $ 9,982,288 | ||||
Shares redeemed | (279,839) | (1,870,117) | (2,812,746) | (20,274,211) | ||||
Net changes resulting from Investor A Share transactions | (118,992) | $ (782,550) | (1,419,805) | $ (10,291,923) | ||||
| Large Company Select Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 38,879 | $ 252,154 | 63,522 | $ 472,923 | ||||
Shares redeemed | (114,756) | (1,005,123) | (346,647) | (2,506,881) | ||||
Net changes resulting from Investor B Share transactions | (75,877) | $ (752,969) | (283,125) | $ (2,033,958) | ||||
3. Shares of Beneficial Interest, continued:
| Balanced Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 168,010 | $ 1,456,289 | 104,827 | $ 977,456 | ||||
Shares issued to shareholders in payment of distributions declared | -- | -- | 4,160 | 37,503 | ||||
Shares redeemed | (86,140) | (749,483) | (290,763) | (2,695,763) | ||||
Net changes resulting from Investor A Share transactions | 81,870 | $ 706,806 | (181,776) | $ (1,680,804) | ||||
| Balanced Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 24,058 | $ 220,571 | 29,267 | $ 284,023 | ||||
Shares redeemed | (202,831) | (1,839,462) | (356,991) | (3,473,271) | ||||
Net changes resulting from Investor B Share transactions | (178,773) | $ (1,618,891) | (327,724) | $ (3,189,248) | ||||
| Small Company Select Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 170,707 | $ 554,497 | 116,266 | $ 443,295 | ||||
Shares redeemed | (101,038) | (339,303) | (776,943) | (2,745,933) | ||||
Net changes resulting from Investor A Share transactions | 69,669 | $ 215,194 | (660,677) | $ (2,302,638) | ||||
| Small Company Select Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 3,161 | $ 10,408 | 9,854 | $ 37,744 | ||||
Shares redeemed | (19,304) | (62,721) | (65,401) | (254,970) | ||||
Net changes resulting from Investor B Share transactions | (16,143) | $ (52,313) | (55,547) | $ (217,226) | ||||
3. Shares of Beneficial Interest, continued:
| Select Value Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 374,692 | $ 2,492,740 | 503,173 | $ 3,866,384 | ||||
Shares issued to shareholders in payment of distributions declared | 3 | 20 | 4,393 | 29,342 | ||||
Shares redeemed | (194,713) | (1,326,224) | (1,006,287) | (7,717,246) | ||||
Net changes resulting from Investor A Share transactions | 179,982 | $ 1,166,536 | (498,721) | $ (3,821,520) | ||||
| Select Value Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 7,307 | $ 52,542 | 52,591 | $ 403,211 | ||||
Shares redeemed | (102,241) | (725,430) | (210,700) | (1,593,757) | ||||
Net changes resulting from Investor B Share transactions | (94,934) | $ (672,888) | (158,109) | $ (1,190,546) | ||||
| U.S. Government Income Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 386,647 | $ 3,806,777 | 1,534,081 | $ 15,065,093 | ||||
Shares issued to shareholders in payment of distributions declared | 8,374 | 82,116 | 68,927 | 668,870 | ||||
Shares redeemed | (300,115) | (2,942,932) | (1,816,824) | (17,828,882) | ||||
Net changes resulting from Investor A Share transactions | 94,906 | $ 945,961 | (213,816) | $ (2,094,919) | ||||
| U.S Government Income Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 70,361 | $ 802,569 | 287,417 | $ 3,251,948 | ||||
Shares issued to shareholders in payment of distributions declared | 1,450 | 16,596 | 14,126 | 159,882 | ||||
Shares redeemed | (82,021) | (946,021) | (51,700) | (580,408) | ||||
Net changes resulting from Investor B Share transactions | (10,210) | $ (126,856) | 249,843 | $ 2,831,422 | ||||
3. Shares of Beneficial Interest, continued:
| U.S. Government Securities Money Market Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Investor A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 420,262,103 | $ 420,262,103 | 987,989,401 | $ 987,989,401 | ||||
Shares issued to shareholders in payment of distributions declared | 183,923 | 183,923 | 624,713 | 624,713 | ||||
Shares redeemed | (419,066,740) | (419,066,740) | (995,915,873) | (995,915,873) | ||||
Net changes resulting from Investor A Share transactions | 1,379,286 | $ 1,379,286 | (7,301,759) | $ (7,301,759) | ||||
| U.S. Government Securities Money Market Fund | |||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended | Year Ended | ||||||
Institutional Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 42,663,498 | $ 42,663,498 | 98,984,463 | $ 98,984,463 | ||||
Shares issued to shareholders in payment of distributions declared | 41,736 | 41,736 | 92,004 | 92,004 | ||||
Shares redeemed | (44,598,357) | (44,598,357) | (78,547,918) | (78,547,918) | ||||
Net changes resulting from Institutional Share transactions | (1,893,123) | $ (1,893,123) | 20,528,549 | $ 20,528,549 | ||||
4. Federal Tax Information
Income and capital gain distributions are determined in accordance with income tax regulations which may differ from GAAP. These differences are primarily due to differing book/tax treatments of market discount reclasses, paydown gains and losses and net operating losses.
For federal income tax purposes, the following amounts apply as of June 30, 2003:
Fund | Cost of | Unrealized | Unrealized | Net Unrealized | ||||
|---|---|---|---|---|---|---|---|---|
Large Company Select Fund | $ 28,092,574 | $ 2,197,599 | $ 2,025,748 | $ 171,851 | ||||
Balanced Fund | $ 12,299,617 | $ 1,148,468 | $ 312,499 | $ 835,969 | ||||
Small Company Select Fund | $ 5,520,946 | $ 1,285,205 | $ 122,585 | $ 1,162,620 | ||||
Select Value Fund | $ 16,061,839 | $ 1,517,587 | $ 816,691 | $ 700,896 | ||||
U.S. Government Income Fund | $ 49,953,471 | $ 476,653 | $ 144,249 | $ 332,404 | ||||
U.S. Government Securities Money Market Fund | $ 219,788,615 | -- | -- | -- |
4. Federal Tax Information, continued
As of December 31, 2002, the following Funds had capital loss carryforwards for federal tax purposes, as noted below, which will reduce the Funds' taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
| Expiration Year | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Fund | 2006 | 2007 | 2009 | 2010 | Total Tax Loss | |||||
Large Company Select Fund | $ -- | $ -- | $ 10,258,008 | $ 11,700,131 | $ 21,958,139 | |||||
Balanced Fund | -- | -- | 2,967,191 | 1,913,284 | 4,880,475 | |||||
Small Company Select Fund | -- | -- | 2,458,435 | 5,890,097 | 8,348,532 | |||||
Select Value Fund | -- | 4,157,318 | 2,560,458 | 5,750,702 | 12,468,478 | |||||
U.S. Government Securities Money Market Fund | 3 | -- | -- | -- | 3 | |||||
Additionally, the following Funds had capital losses attributable to security transactions incurred after October 31, 2002, which were treated as arising on January 1, 2003 the first day of each Fund's next taxable year as follows:
Fund | Capital Losses Deferred | |
|---|---|---|
Large Company Select Fund | $ 392,527 | |
Balanced Fund | 64,689 | |
Small Company Select Fund | 59,482 | |
Select Value Fund | 701,819 |
5. Investment Adviser Fee and Other Transactions with Affiliates:
Investment Advisory Fee
Provident Investment Advisors, Inc., the Fund's investment adviser (the "Adviser"), has entered into an Investment Advisory Agreement with the Trust whereby the Adviser supervises and manages the investments of the Funds. Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees based on a percentage of the average daily net assets of each Fund as listed below. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver on these Funds at any time at its sole discretion. For the fiscal year ending December 31, 2003, the Adviser will limit its fee to 0.80% for the Balanced Fund and 0.85% for the Select Value Fund.
Fund | Annual Rate | |
|---|---|---|
Large Company Select Fund | 0.80% | |
Balanced Fund | 0.90% | |
Small Company Select Fund | 0.80% | |
Select Value Fund | 0.95% | |
U.S. Government Income Fund | 0.40% | |
U.S. Government Securities Money Market Fund | 0.15% |
Administration Fee
Federated Services Company ("FServ"), under an Agreement for Administrative Services with the Trust, provides the Funds with certain administrative personnel and services. The fee paid to FServ is equal to 0.17% of the average aggregate daily net assets of each Fund. Fserv may voluntarily choose to waive a portion of its fee. Fserv can modify or terminate this voluntary waiver at any time at its sole discretion.
Distribution Services Fee
Edgewood Services, Inc., ("Distributor") is the principal underwriter and distributor of the Trust. The Trust has adopted Distribution Plans (collectively, the "Plan") pursuant to Rule 12b-1 under the 1940 Act. Under the terms of the Plan, the Funds will compensate the Distributor from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Investor A Shares and Investor B Shares. The Plan provides that the Funds may incur annual distribution expenses up to 0.25% of the average daily net assets of each Fund's Investor A Shares and up to 1.00% of the average daily net assets of each Fund's Investor B Shares to compensate the Distributor. The Distributor does not retain these amounts generally, but uses the fee to compensate investment professionals such as banks, broker/dealers, trust departments of banks, and registered investment advisers, for marketing activities (such as advertising, printing and distributing prospectuses, and providing incentives to investment professionals), to promote sales of shares so that overall Fund assets are maintained or increased.
Shareholder Service Fee
Under the terms of a Shareholder Services Plan, the Funds may pay compensation, in an amount not to exceed 0.25% of the average daily net assets of each Fund, to banks and other financial institutions including Provident Bank ("Provident") and its affiliates and the Distributor for providing shareholder services and maintaining shareholder accounts. As of June 30, 2003, the Funds did not incur a shareholder service fee.
Custodian, Fund Accounting and Recordkeeping Fees
Provident serves as custodian and fund accountant to the Trust. Under the terms of the Custodian, Fund Accounting and Recordkeeping Agreement, Provident is entitled to receive fees based on a percentage of the average daily net assets of each Fund. Provident may voluntarily choose to waive any portion of its fee. Provident can modify or terminate this voluntary waiver at any time at its sole discretion.
Transfer and Dividend Disbursing Agent Fees and Expenses
Provident serves as transfer agent and dividend disbursing agent to the Trust. Under the terms of the Master Transfer and Recordkeeping Agreement, Provident is entitled to receive fees based on the size, type, number of accounts and transactions made by shareholders of each Fund. Provident will also be reimbursed for certain out-of-pocket expenses. Provident may voluntarily choose to waive any portion of its fee. Provident can modify or terminate this voluntary waiver at any time at its sole discretion.
General
Certain of the Officers of the Trust are Officers and Directors of the above companies.
Purchases and sales of securities, excluding long-term U.S government securities and short-term obligations (and in-kind contributions), for the six months ended June 30, 2003 were as follows:
Fund | Purchases | Sales | ||
|---|---|---|---|---|
Large Company Select Fund | $ 17,305,807 | $ 19,358,224 | ||
Balanced Fund | 1,731,750 | 2,616,119 | ||
Small Company Select Fund | 3,422,748 | 3,378,371 | ||
Select Value Fund | 3,832,691 | 3,677,465 |
Purchases and sales of long-term U.S government securities, for the six months ended June 30, 2003 were as follows:
Fund | Purchases | Sales | ||
|---|---|---|---|---|
Balanced Fund | $ 50,000 | $ -- | ||
U.S. Government Income Fund | 117,830,100 | 120,587,396 |
Change in Independent Accountants
In February 2003, based on the recommendation of the Trust's Audit Committee, the Board of Trustees selected Deloitte & Touche ("D&T") as the Trust's independent accountant for the fiscal year ending December 31, 2003. D&T replaces Ernst & Young LLP ("E&Y"), which served as the Trust's independent accountant for the fiscal year ended December 31, 2002 and prior years. The change from E&Y to D&T was made in connection with the Trust's annually required selection of auditors.
The reports on the financial statements audited by Ernst & Young LLP for the years ended December 31, 2002, 2001, and 2000 for the Funds did not contain an adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. There were no disagreements between the Funds and Ernst & Young LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Ernst & Young LLP would have caused it to make reference to the subject matter of the disagreements in connection with its reports on the financial statements of such years.
The Riverfront Funds
INVESTMENT ADVISER
Provident Investment Advisors, Inc.
One East Fourth Street
Cincinnati, Ohio 45202
DISTRIBUTOR
Edgewood Services, Inc.
5800 Corporate Drive
Pittsburgh, PA 15237-7002
FOR ADDITIONAL INFORMATION CALL:
The Provident Bank
Mutual Fund Services
1-800-424-2295
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This report must be preceded or accompanied by the Funds’ prospectus which contains facts concerning its objectives and policies, management fees, expenses and other information.
Cusip 768709842
Cusip 768709834
Cusip 768709602
Cusip 768709701
Cusip 768709867
Cusip 768709859
Cusip 768709404
Cusip 768709800
Cusip 768709305
Cusip 768709875
Cusip 768709107
Cusip 768709826
G02569-01 (8/03)
Item 2. Code of Ethics
Not Applicable
Item 3. Audit Committee Financial Expert
Not Applicable
Item 4. Principal Accountant Fees and Services
Not Applicable
Item 5 Audit Committee of Listed Registrants
Not Applicable
Item 6 [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies
Not Applicable
Item 8. [Reserved]
Item 9. Controls and Procedures
(a) The registrant's President and Treasurer have concluded that the
registrant's disclosure controls and procedures (as defined in rule
30a-3(c) under the Act) are effective in design and operation and are
sufficient to form the basis of the certifications required by Rule 30a-(2)
under the Act, based on their evaluation of these disclosure controls and
procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in rule 30a-3(d) under the Act), or the internal
control over financial reporting of its service providers during the last
fiscal half year (the registrant's second half year in the case of an
annual report) that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
Item 10. Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant The Riverfront Funds, Inc.
By /S/ C. John Ollier, Principal Financial Officer
(insert name and title)
Date August 26, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /S/ J. Donald Raines, Principal Executive Officer
Date August 26, 2003
By /S/ C. John Ollier, Principal Financial Officer
Date August 26, 2003