UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21463
Columbus Funds, Inc.
(Exact name of registrant as specified in charter)
227 Washington St.
Columbus, IN 47202
(Address of principal executive offices) (Zip code)
David B. McKinney
Columbus Funds, Inc.
227 Washington St.
Columbus, IN 47202
(Name and address of agent for service)
Copies to:
Scott A. Moehrke
Kirkland & Ellis LLP
200 East Randolph Drive
Chicago, IL 60601
Registrant's telephone number, including area code: (812) 372-6606
Date of fiscal year end: September 30
Date of reporting period: March 31, 2006
Item 1 - Reports to Stockholders
COLUMBUS FUNDS:
COLUMBUS CORE FUND
COLUMBUS CORE PLUS FUND
SEMI-ANNUAL REPORT
MARCH 31, 2006
Shares of Columbus Funds are distributed by an independent third party,
UMB Distribution Services, LLC.
COLUMBUS FUNDS
EXPENSE EXAMPLE (UNAUDITED)
FOR THE SIX MONTHS ENDED MARCH 31, 2006
As a shareholder of the Columbus Funds (the "Funds"), you incur ongoing costs,
including management fees and other Fund expenses. If you invest through a
financial intermediary, you may also incur additional costs such as a
transaction fee charged on the purchase or sale of the Fund or an asset-based
management fee. This Example is intended to help you understand your ongoing
costs (in dollars) of investing in the Fund 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 October 1, 2005 to March 31, 2006.
ACTUAL EXPENSES
The first line of the tables below provide information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses 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 first
line under the heading entitled "Expenses Paid During Period" to estimate the
expenses you paid on your account during the period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the tables below provide information about hypothetical
account values and hypothetical expenses based on the Funds' actual expense
ratios and an assumed rate of return of 5% per year before expenses, which is
not the Funds' 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 the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any costs that may be associated with
investing in the Fund through a financial intermediary. Therefore, the second
line of the table is useful in comparing the ongoing costs only, and will not
help you determine the relative total costs of owning different funds. In
addition, if any costs associated with investing through a financial
intermediary were included, your costs would have been higher.
Columbus Core Fund Columbus Core Plus Fund
-------------------------------------------- --------------------------------------------
Expenses paid Expenses paid
Beginning Ending during period Beginning Ending during period
account account 10/1/05-3/31/06(1) account account 10/1/05-3/31/06(1)
value 10/1/05 value value value 3/31/06
3/31/06 10/1/05
-------------- ------------- --------------- ------------- -------------- ---------------
Actual $1,000.00 $996.90 $1.00 $1,000.00 $1,000.50 $1.00
Hypothetical (5% return
before expenses) 1,000.00 1,023.99 1.02 1,000.00 1,024.00 1.01
(1) Expenses are equal to the Funds' annualized expense ratios (.20% for the
Core Fund and .20% for the Core Plus Fund), multiplied by the average account
value over the period, and multiplied by .4986 for Core Fund and the Core
Plus Fund (to reflect the one-half year period).
COLUMBUS CORE FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
ASSET BACKED SECURITIES 5.0%
American Express Credit Account Master Trust (c) (d)
$ 190,000 4.86%, 11/16/09 $ 190,259
Carmax Auto Owner Trust (c) (d)
1,879 3.80%, 9/15/06 1,878
Citibank Credit Card Issuance Trust (c) (d)
260,000 4.65%, 10/15/09 260,104
Hertz Vehicle Financing LLC - 144A (b)
55,000 5.08%, 11/25/11 (Acquired 12/15/05, Cost $54,991) 54,286
Keystone Owner Trust - 144A (b)
18,800 7.53%, 5/25/25 (Acquired Multiple Dates, Cost $19,200) 18,724
Mid-State Trust
64,927 4.86%, 7/15/38 60,668
Oakwood Mortgage Investors, Inc.
39,678 7.70%, 9/15/20 39,789
Oakwood Mortgage Investors, Inc.
2,236 6.60%, 5/15/21 2,231
SLM Student Loan Trust (c) (d)
300,000 4.53%, 4/25/12 299,928
SLM Student Loan Trust (c) (d)
152,399 4.64%, 1/27/14 152,428
USAA Auto Owner Trust
40,000 5.03%, 11/17/07 39,955
---------------
TOTAL ASSET BACKED SECURITIES (COST $1,125,062) 1,120,250
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS 24.2%
Banc of America Commercial Mortgage, Inc. (c)
235,000 5.00%, 10/10/45 231,008
Banc of America Commercial Mortgage, Inc. (c)
80,000 5.16%, 9/10/47 79,201
CAPCO America Securitization Corp. (d)
54,274 5.86% 10/15/30 54,211
Commercial Mortgage Pass Through Certificates (d)
4,352 6.15%, 5/15/32 4,343
Commercial Mortgage Pass Through Certificates (d)
222,270 3.25%, 6/10/38 207,275
Countrywide Home Loan Mortgage Pass Through Trust (c) (d)
16,615 4.54%, 6/20/35 16,549
Credit Suisse First Boston Mortgage Securities Corp. (d)
25,566 7.00%, 2/25/33 25,643
Credit Suisse First Boston Mortgage Securities Corp.
30,764 2.08%, 5/15/38 29,530
Fannie Mae (d)
47,000 3.50%, 4/25/11 46,224
Fannie Mae (d)
84,354 5.00%, 11/25/12 84,010
Fannie Mae
311,304 4.00%, 8/25/18 297,728
Fannie Mae
270,327 4.25%, 4/25/19 259,126
Fannie Mae (d)
46,472 3.50%, 10/25/21 45,680
Fannie Mae
146,419 4.50%, 1/25/25 143,553
COLUMBUS CORE FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Fannie Mae (c) (d)
$ 140,231 4.87%, 11/25/28 $ 140,356
Fannie Mae
130,000 4.50%, 3/25/33 124,079
Fannie Mae
76,158 5.00%, 3/25/34 74,654
Fannie Mae Grantor Trust
69,526 7.00%, 11/25/43 71,397
Fannie Mae Whole Loan (d)
20,267 5.50%, 7/25/42 20,195
Federal Home Loan Bank System
123,709 5.07%, 10/20/15 120,462
FHLMC-GNMA
8,589 6.50%, 12/25/08 8,634
Freddie Mac
55,326 4.00%, 2/15/10 55,086
Freddie Mac (d)
18,974 4.00%, 9/15/12 18,916
Freddie Mac
115,231 3.00%, 11/15/13 111,374
Freddie Mac (d)
91,948 5.00%, 6/15/15 91,523
Freddie Mac (d)
40,760 4.50%, 9/15/15 40,641
Freddie Mac
25,391 4.50%, 3/15/16 25,101
Freddie Mac
121,174 4.00%, 8/15/17 115,898
Freddie Mac (d)
73,835 4.00%, 1/15/18 73,373
Freddie Mac (d)
83,665 3.00%, 3/15/19 83,144
Freddie Mac (d)
72,412 4.50%, 2/15/20 71,895
Freddie Mac
90,173 5.00%, 1/15/21 89,815
Freddie Mac
247,471 5.00%, 11/15/21 245,885
Freddie Mac
107,833 3.50%, 1/15/23 105,994
Freddie Mac
174,784 5.00%, 7/15/25 173,416
Freddie Mac (d)
33,067 4.50%, 5/15/26 32,749
Freddie Mac
67,711 4.50%, 11/15/28 65,462
Freddie Mac
41,633 4.50%, 9/15/29 40,435
Freddie Mac (c)
175,000 4.50%, 2/15/33 167,862
Freddie Mac
130,000 4.50%, 8/15/33 124,342
Freddie Mac
110,000 5.00%, 9/15/33 107,095
Freddie Mac
45,188 5.00%, 2/15/36 39,850
GMAC Commerical Mortgage Securities, Inc.
215,483 3.34%, 5/10/36 201,728
COLUMBUS CORE FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Greenwich Capital Commercial Funding Corp. (c)
$ 155,000 5.12%, 4/10/37 $ 153,323
LB Commerical Conduit Mortgage Trust (c) (d)
48,392 6.41%, 6/15/31 48,402
LB Commerical Conduit Mortgage Trust (d)
713 5.87%, 10/15/35 712
LB-UBS Commercial Mortgage Trust (c)
50,000 4.89%, 9/15/30 49,060
LB-UBS Commercial Mortgage Trust (c)
225,000 5.10%, 11/15/30 222,162
MASTR Alternative Loans Trust
69,714 4.50%, 7/25/14 67,553
MASTR Asset Securitization Trust
50,253 4.75%, 1/25/14 48,842
MASTR Asset Securitization Trust (d)
28,534 4.00%, 12/25/33 28,152
Morgan Stanley Capital I
86,616 3.27%, 5/15/40 82,472
Nomura Asset Acceptance Corp. (c) (d)
5,084 5.02%, 10/25/34 5,085
Nomura Asset Acceptance Corp. (c) (d)
54,026 4.95%, 8/25/35 54,051
Nomura Asset Securities Corp. (d)
53,112 6.28%, 3/15/30 53,298
NYC Mortgage Loan Trust - 144A (b)
33,522 6.75%, 9/25/19 (Acquired Multiple Dates, Cost $36,764) 33,880
Residential Asset Securitization Trust (d)
21,693 2.75%, 8/25/33 21,547
Wachovia Bank Commercial Mortgage Trust (d)
29,741 4.54%, 4/15/34 29,593
Wachovia Bank Commercial Mortgage Trust
112,241 2.99%, 6/15/35 103,509
Wells Fargo Mortgage Backed Securities Trust
243,237 5.50%, 3/25/36 239,589
---------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $5,473,177) 5,406,672
---------------
CORPORATE BONDS 16.4%
American Electric Power Co., Inc. (c)
45,000 4.71%, 8/16/07 44,566
American Ref-Fuel Co LLC - 144A (b)
80,000 6.26%, 12/31/15 (Acquired Multiple Dates, Cost $82,437) 77,614
Appalachian Power Co.
30,000 4.40%, 6/1/10 28,641
British Telecommunications PLC
71,000 8.38%, 12/15/10 79,193
Burlington Northern and Sante Fe Railway Co.
111,265 6.23%, 7/2/18 114,599
Burlington Northern and Sante Fe Railway Co.
142,760 4.58%, 1/15/21 134,561
Burlington Northern RR Co.
13,534 6.96%, 3/22/09 13,902
CenterPoint Energy Resources Corp.
40,000 6.50%, 2/1/08 40,593
Centerpoint Energy Resources Corp.
65,000 7.88%, 4/1/13 72,415
Citgroup, Inc.
125,000 5.13%, 2/14/11 123,309
COLUMBUS CORE FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Consolidated Natural Gas Co.
45,000 6.85%, 4/15/11 47,182
Consumers Energy Co.
69,000 4.40%, 8/15/09 66,458
Comcast Corp.
55,000 5.45%, 11/15/10 54,389
Cox Communications Inc.
80,000 7.13%, 10/1/12 83,925
Credit Suisse/London - 144A (b)
53,000 7.90%, 5/29/49 (Acquired Multiple Dates, Cost $55,893) 54,279
DaimlerChrysler NA Holdings Corp. (c)
40,000 5.33%, 3/13/09 40,007
DaimlerChrysler NA Holdings Corp.
55,000 4.88%, 6/15/10 53,006
Deutsche Telekom International Finance BV
100,000 5.75%, 3/23/16 97,623
Dominion Resources, Inc./VA
133,000 3.66%, 11/15/06 131,619
Duke Energy Corp.
62,000 3.75%, 3/5/08 60,240
Entergy Arkansas, Inc.
78,000 5.00%, 7/1/18 70,138
Entergy Gulf States, Inc.
33,000 4.88%, 11/1/11 31,348
Entergy Louisiana LLC
5,000 5.50%, 4/1/19 4,627
ERP Operating LP
59,000 4.75%, 6/15/09 57,780
European Investment Bank
65,000 4.88%, 2/15/36 60,674
Florida Power Corp.
65,000 4.50%, 6/1/10 62,643
FPL Energy Virginia Funding Corp. - 144A (b)
37,034 7.52%, 6/30/19 (Acquired 2/10/06, Cost $39,789) 39,525
General Electric Capital Corp.
95,000 5.00%, 1/8/16 91,058
Goldman Sachs Group, Inc.
55,000 5.00%, 1/15/11 53,827
Gulfstream Natural Gas System LLC - 144A (b)
55,000 5.56%, 11/1/15 (Acquired Multiple Dates, Cost $55,326) 53,951
ICI Wilmington, Inc.
108,000 4.38%, 12/1/08 104,127
International Lease Finance Corp.
65,000 5.25%, 1/10/13 63,167
Jackson National Life Global Funding - 144A (b)
50,000 5.13%, 2/3/11 (Acquired 2/10/06, Cost $49,959) 49,240
Kern River Funding Corp. - 144A (b)
30,660 4.89%, 4/30/18 (Acquired Multiple Dates, Cost $30,331) 29,629
Kinder Morgan, Inc.
65,000 6.50%, 9/1/12 67,246
Kiowa Power Partners LLC - 144A (b)
105,006 4.81%, 12/30/13 (Acquired Multiple Dates, Cost $103,932) 101,566
Liberty Property LP
41,000 7.75%, 4/15/09 43,366
NY Life Global Funding - 144A (b)
84,000 3.88%, 1/15/09 (Acquired Multiple Dates, Cost $83,220) 80,897
Nextel Communications, Inc.
90,000 5.95%, 3/15/14 89,102
COLUMBUS CORE FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Nisource Finance Corp.
$ 50,000 7.88%, 11/15/10 $ 54,235
Pacific Life Global Funding - 144A (b)
51,000 3.75%, 1/15/09 (Acquired Multiple Dates, Cost $50,337) 49,378
Pemex Finance Ltd.
49,000 9.69%, 8/15/09 52,577
PF Export Receivables Master Trust - 144A (b)
93,565 3.75%, 6/1/13 (Acquired Multiple Dates, Cost $90,343) 87,382
Premcor Refining Group, Inc./The
55,000 6.75%, 05/1/14 57,077
Pricoa Global Funding I - 144A (b) (c) (d)
50,000 4.89%, 3/3/09 (Acquired 3/1/06, Cost $50,000) 49,980
Protective Life Secured Trust
71,000 4.00%, 10/7/09 68,293
Public Service Company of Colorado
121,000 4.38%, 10/1/08 118,408
Public Service Electric and Gas
74,000 4.00%, 11/1/08 71,324
Residential Capital Corp.
55,000 6.00%, 2/22/11 54,561
Simon Property Group LP
71,000 4.88%, 8/15/10 69,118
Southern Cal Edison Co. (c)
65,000 5.25%, 2/2/09 64,994
Telecom Italia Capital SA
75,000 4.88%, 10/1/10 72,217
Telefonos de Mexico SA de CV (d)
38,000 4.50%, 11/19/08 36,950
Union Pacific Corp.
82,608 5.40%, 7/2/25 81,344
Vodafone Group PLC
50,000 5.50%, 6/15/11 49,538
Westar Energy, Inc.
55,000 6.00%, 7/1/14 55,807
---------------
TOTAL CORPORATE BONDS (COST $3,762,517) 3,665,215
---------------
FOREIGN GOVERNMENT BONDS 0.6%
Province of Quebec Canada
130,000 5.00%, 3/1/16 125,831
---------------
TOTAL FOREIGN GOVERNMENT BONDS (COST $129,042) 125,831
---------------
MORTGAGE BACKED SECURITIES 42.9%
Fannie Mae Pool
131,502 4.13%, 1/1/10 125,978
Fannie Mae Pool
341,000 4.75%, 11/1/12 327,731
Fannie Mae Pool
38,805 4.50%, 2/1/13 37,429
Fannie Mae Pool
48,663 4.50%, 6/1/13 46,937
Fannie Mae Pool
80,592 5.00%, 6/1/13 78,931
Fannie Mae Pool
45,903 5.00%, 6/1/13 44,959
COLUMBUS CORE FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Fannie Mae Pool
$ 76,009 4.50%, 7/1/13 $ 73,313
Fannie Mae Pool
82,682 3.81%, 8/1/13 75,422
Fannie Mae Pool
43,852 5.00%, 8/1/13 42,948
Fannie Mae Pool
94,946 4.00%, 9/1/13 89,962
Fannie Mae Pool
236,371 5.00%, 2/1/15 232,306
Fannie Mae Pool
423,973 5.00%, 12/1/17 413,370
Fannie Mae Pool
38,599 4.50%, 6/1/18 36,916
Fannie Mae Pool
205,271 4.50%, 9/1/18 196,673
Fannie Mae Pool
125,584 4.50%, 6/1/19 120,108
Fannie Mae Pool
74,799 7.00%, 9/1/32 76,957
Fannie Mae Pool
489,761 6.00%, 4/1/35 489,967
Fannie Mae Pool 15 Yr May TBA (a)
40,000 5.00%, 5/1/21 38,962
Fannie Mae Pool 15 Yr May TBA (a)
1,450,000 5.50%, 5/1/21 1,440,031
Fannie Mae Pool 30 Yr May TBA (a)
1,885,000 5.00%, 5/1/36 1,793,106
Fannie Mae Pool 30 Yr May TBA (a)
750,000 5.50%, 5/1/36 731,250
Fannie Mae Pool 30 Yr May TBA (a)
1,095,000 6.00%, 5/15/36 1,093,290
Fannie Mae Pool 30 Yr June TBA (a)
1,015,000 5.50%, 6/1/36 988,673
Fannie Mae Pool 30 Yr June TBA (a)
90,000 6.50%, 6/1/36 91,603
Freddie Mac Gold Pool
67,934 4.00%, 5/1/14 64,197
Freddie Mac Gold Pool
181,410 5.00%, 10/1/14 177,574
Freddie Mac Gold Pool
176,973 4.00%, 1/1/15 166,608
Freddie Mac Gold Pool
142,752 5.00%, 3/1/15 140,059
Freddie Mac Gold Pool
175,935 5.00%, 7/1/15 172,462
Freddie Mac Gold Pool
36,923 5.00%, 7/1/15 36,128
Freddie Mac Gold Pool
75,042 4.00%, 5/1/19 70,116
Freddie Mac Gold Pool
58,911 6.50%, 5/1/35 60,108
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $9,712,096) 9,574,074
---------------
U.S. GOVERNMENT AGENCIES 9.8%
Egypt Government AID Bonds
105,000 4.45%, 9/15/15 98,954
COLUMBUS CORE FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Federal Home Loan Bank System (d)
$ 115,000 5.00%, 3/20/07 $ 114,848
Freddie Mac (d)
780,000 5.50%, 7/15/06 780,982
Freddie Mac
168,000 2.20%, 7/28/06 166,516
Freddie Mac (d)
260,000 4.88%, 3/15/07 259,362
Freddie Mac
640,000 4.75%, 1/18/11 629,043
Israel Government AID Bonds
134,000 5.50%, 9/18/23 136,992
---------------
TOTAL U.S. GOVERNMENT AGENCIES (COST $2,206112) 2,186,697
---------------
U.S. TREASURY BONDS, NOTES, & T-BILLS 15.4%
US Treasury Bond
765,000 4.25%, 11/15/14 731,173
255,000 4.00%, 2/15/15 238,973
625,000 4.50%, 2/15/16 607,861
510,000 6.25%, 8/15/23 578,412
1,200,000 5.25%, 2/15/29 1,232,156
US Treasury Bonds (TIPS)
39,954 2.00%, 1/15/26 37,863
---------------
TOTAL U.S. TREASURY BONDS, NOTES, & T-BILLS (COST $3,474,196) 3,426,438
---------------
REPURCHASE AGREEMENTS 13.0%
2,905,000 Agreement with UMB Bank, N.A., 4.33%, dated 3/31/2006, to 2,905,000
be repurchased at $2,906,048 on 4/03/2006, collaterized
by 1 U.S. Government Agency Obligation maturing 11/30/2007,
with a market value of $2,963,476
TOTAL REPURCHASE AGREEMENTS (COST $2,905,000) 2,905,000
---------------
SHORT-TERM INVESTMENT 0.0%
3,768 UMB Bank Money Market Fiduciary 3,768
---------------
TOTAL SHORT-TERM INVESTMENT (COST $3,768) 3,768
---------------
TOTAL INVESTMENTS (COST $28,790,970) 127.3% 28,413,945
LIABILITIES LESS OTHER ASSETS (27.3%) (6,090,058)
---------------
NET ASSETS 100.0% $ 22,323,887
===============
(a) When-issued security
(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. The total value of securities
amounted to $780,331 (3.5% of net assets) at March 31, 2006. These securities
have been determined to be illiquid under guidelines established by the Board
of Directors.
(c) Variable Rate Securities
(d) Security marked as segregated to cover when-issued security.
COLUMBUS CORE PLUS FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
ASSET BACKED SECURITIES 4.6%
American Express Credit Account Master Trust (c) (d)
$ 1,020,000 4.86%, 11/16/09 $ 1,021,390
Carmax Auto Owner Trust (c) (d)
9,909 3.80%, 9/15/06 9,903
Citibank Credit Card Issuance Trust (c) (d)
1,385,000 4.65%, 10/15/09 1,385,553
Hertz Vehicle Financing LLC - 144A (b)
250,000 5.08%, 11/15/11 (Acquired 12/15/06, Cost $249,959) 246,758
Mego Mortgage Home Loan Trust
660 7.28%, 8/25/17 658
Mid-State Trust
274,903 4.86%, 7/15/38 256,870
SLM Student Loan Trust (c) (d)
1,605,000 4.53%, 4/25/12 1,604,615
SLM Student Loan Trust (c) (d)
825,789 4.64%, 1/27/14 825,946
USAA Auto Owner Trust (d)
215,000 5.03%, 11/17/07 214,756
--------------
TOTAL ASSET BACKED SECURITIES (COST $5,572,676) 5,566,449
--------------
COLLATERALIZED MORTGAGE OBLIGATIONS 22.2%
Banc of America Commercial Mortgage, Inc. (c)
440,000 5.16%, 9/10/47 435,607
Banc of America Commercial Mortgage, Inc. (c)
1,260,000 5.00%, 9/10/10 1,238,599
Capco America Securitization Corp. (d)
346,509 5.86% 10/15/30 346,101
Chase Commercial Mortgage Securities Corp.
22,521 6.60%, 12/19/29 22,821
Commercial Mortgage Pass Through Certificates (d)
42,100 6.15%, 5/15/32 42,006
Commercial Mortgage Pass Through Certificates
1,237,500 3.25%, 6/10/38 1,154,020
Countrywide Home Loan Mortgage Pass Through Trust (c) (d)
91,383 4.54%, 6/20/35 91,018
CS First Boston Mortgage Securities Corp. (d)
113,474 7.00%, 2/25/33 113,813
CS First Boston Mortgage Securities Corp.
155,564 2.08%, 5/15/38 149,320
Fannie Mae (d)
287,000 3.50%, 4/25/11 282,261
Fannie Mae (d)
416,657 5.00%, 11/25/12 414,960
Fannie Mae
1,676,891 4.00%, 8/25/18 1,603,760
Fannie Mae
1,447,043 4.25%, 4/25/19 1,387,087
Fannie Mae (d)
181,586 3.50%, 10/25/21 178,492
Fannie Mae
10,000 5.50%, 1/25/24 9,908
791,579 4.50%, 1/25/25 776,082
Fannie Mae (c) (d)
733,876 4.87%, 11/25/28 734,529
COLUMBUS CORE PLUS FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Fannie Mae
$ 710,000 4.50%, 3/25/33 $ 677,660
Fannie Mae
71,557 5.00%, 3/25/34 70,145
Fannie Mae Grantor Trust
451,181 7.00%, 11/25/43 463,320
Fannie Mae Whole Loan (d)
99,017 5.50%, 7/25/42 98,668
Federal Home Loan Bank System
661,368 5.07%, 10/20/15 644,007
Freddie Mac (d)
63,717 4.00%, 9/15/12 63,523
Freddie Mac (d)
497,092 5.00%, 6/15/15 494,796
Freddie Mac (d)
195,913 4.50%, 9/15/15 195,339
Freddie Mac
125,417 4.50%, 3/15/16 123,986
Freddie Mac
644,957 4.00%, 8/15/17 616,875
Freddie Mac (d)
365,659 4.00%, 1/15/18 363,373
Freddie Mac (d)
333,330 3.00%, 3/15/19 331,255
Freddie Mac (d)
319,433 4.50%, 2/15/20 317,153
Freddie Mac
1,331,395 5.00%, 11/15/21 1,322,864
Freddie Mac (d)
387,632 3.50%, 1/15/23 381,021
Freddie Mac
956,943 5.00%, 7/15/25 949,451
Freddie Mac (d)
180,364 4.50%, 5/15/26 178,632
Freddie Mac
363,949 4.50%, 11/15/28 351,861
Freddie Mac
237,310 4.50%, 9/15/29 230,477
Freddie Mac (c)
945,000 4.50%, 2/15/33 906,453
Freddie Mac
695,000 4.50%, 8/15/33 664,753
Freddie Mac
595,000 5.00%, 9/15/33 579,285
Freddie Mac
251,042 5.00%, 2/15/36 221,388
GMAC Commerical Mortgage Securities, Inc.
23,953 7.27%, 8/16/33 23,984
GMAC Commerical Mortgage Securities, Inc.
940,638 3.34%, 5/10/36 880,595
Greenwich Capital Commercial Funding Corp. (c) (d)
800,000 5.12%, 4/10/37 791,345
LB Commerical Conduit Mortgage Trust (c) (d)
261,522 6.41%, 6/15/31 261,578
LB Commerical Conduit Mortgage Trust (d)
2,089 5.87%, 10/15/35 2,084
LB-UBS Commercial Mortgage Trust (c)
275,000 4.89%, 9/15/30 269,829
LB-UBS Commercial Mortgage Trust (c)
1,220,000 5.10%, 11/15/30 1,204,612
COLUMBUS CORE PLUS FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
MASTR Alternative Loans Trust
$ 305,415 4.50%, 7/25/14 $ 295,947
MASTR Asset Securitization Trust
244,564 4.75%, 1/25/14 237,700
MASTR Asset Securitization Trust (d)
114,134 4.00%, 12/25/33 112,608
Morgan Stanley Capital I
378,193 3.27%, 5/15/40 360,101
Nomura Asset Acceptance Corp. (c) (d)
25,724 5.02%, 10/25/34 25,728
Nomura Asset Acceptance Corp. (c) (d)
293,768 4.95%, 8/25/35 293,904
Nomura Asset Securities Corporation (d)
283,926 6.28%, 3/15/30 284,921
NYC Mortgage Loan Trust - 144A (b)
75,890 6.75%, 9/25/19 (Acquired Multiple Dates, Cost $80,022) 76,701
Residential Asset Securitization Trust (d)
94,282 2.75%, 8/25/33 93,647
Wachovia Bank Commercial Mortgage Trust (d)
484,309 4.54%, 4/15/34 481,903
Wachovia Bank Commercial Mortgage Trust
570,775 2.99%, 6/15/35 526,370
Wells Fargo Mortgage Backed Securities Trust
1,324,950 5.50%, 3/25/36 1,305,078
--------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $27,005,707) 26,755,304
--------------
CORPORATE BONDS 17.8%
Abitibi Consolidated, Inc.
112,000 8.50%, 8/1/29 98,000
Abitibi Consolidated, Inc.
69,000 8.85%, 8/1/30 61,927
Adelphia Communications Corp.
900,000 7.85%, 5/1/09 522,000
Albertson's, Inc.
135,000 7.50%, 2/15/11 137,225
Albertson's, Inc.
170,000 8.00%, 5/1/31 158,246
American Electric Power Co., Inc.
215,000 4.71%, 8/16/07 212,927
American Ref-Fuel Co. LLC - 144A (b)
197,600 6.26%, 12/31/15 (Acquired Multiple Dates, Cost $201,060) 191,708
Appalachian Power Co.
145,000 4.40%, 6/1/10 138,432
AT&T Corp.
355,000 9.05%, 11/15/11 383,758
Borger Energy Associates LP / Borger Funding Corp. - 144A (b)
113,875 7.26%, 12/31/22 (Acquired Multiple Dates, Cost $108,551) 106,466
British Telecommunications PLC
414,000 8.38%, 12/15/10 461,773
Burlington Northern Sante Fe Corp.
177,116 4.83%, 1/15/23 169,564
Centerpoint Energy, Inc.
440,000 7.25%, 9/1/10 464,179
Chesapeake Energy Corp.
125,000 6.88%, 1/15/16 125,937
Citigroup, Inc.
680,000 5.13%, 2/14/11 670,801
COLUMBUS CORE PLUS FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Comcast Corp.
$ 305,000 5.45%, 11/15/10 $ 301,610
Consolidated Natural Gas Co.
230,000 6.85%, 4/15/11 241,151
Consumers Energy Co.
133,000 4.40%, 8/15/09 128,100
COX Communications, Inc.
430,000 7.13%, 10/1/12 451,097
CPG Partners LP
330,000 3.50%, 3/15/09 313,283
Credit Suisse/London - 144A (b)
126,000 7.90%, 5/1/46 (Acquired Multiple Dates, Cost $132,542) 129,039
Daimlerchrysler NA Holdings Corp. (c)
205,000 5.33%, 3/13/09 205,036
Daimlerchrysler NA Holdings Corp.
280,000 4.88%, 6/15/10 269,851
Deutsche Telekom International Finance BV
545,000 5.75%, 3/23/16 532,045
Domtar, Inc.
310,000 7.13%, 8/15/15 274,350
Duke Energy Field Services LLC
183,000 5.75%, 11/15/06 183,318
Edison Mission Energy Funding - 144A (b)
607,469 7.33%, 9/15/08 (Acquired Multiple Dates, Cost $621,251) 607,469
El Paso Natural Gas Co.
475,000 7.63%, 8/1/10 495,188
Entergy Gulf States, Inc.
269,000 4.88%, 11/1/11 255,537
Entergy Louisiana LLC
124,000 5.50%, 4/1/19 114,762
Enterprise Products Operating LP
330,000 4.95%, 6/1/10 320,102
EOP Operating LP
65,000 4.65%, 10/1/10 62,180
European Investment Bank
350,000 4.88%, 2/15/36 326,706
Florida Power Corp.
335,000 4.50%, 6/1/10 322,852
Ford Motor Co.
495,000 7.45%, 7/16/31 367,538
Ford Motor Credit Co.
710,000 5.70%, 1/15/10 630,070
Ford Motor Credit Co.
400,000 7.25%, 10/25/11 364,492
Ford Motor Credit Co.
175,000 7.00%, 10/1/13 156,521
General Electric Capital Corp.
490,000 5.00%, 1/8/16 469,667
General Motors Acceptance Corp.
165,000 7.00%, 2/1/12 153,634
General Motors Acceptance Corp.
350,000 6.75%, 12/1/14 315,072
Goldman Sachs Group, Inc.
280,000 5.00%, 1/15/11 274,030
Gulfstream Natural Gas System LLC - 144A (b)
160,000 5.56%, 11/1/15 (Acquired Multiple Dates, Cost $160,484) 156,949
ICI Wilmington, Inc.
590,000 4.38%, 12/1/08 568,840
International Lease Finance Corp.
325,000 5.25%, 1/10/13 315,835
COLUMBUS CORE PLUS FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Jackson National Life Global Funding - 144A (b)
$ 235,000 5.13%, 2/10/11 (Acquired 2/3/06, Cost $234,805) $ 231,428
Kern River Funding Corp. - 144A (b)
144,540 4.89%, 4/30/18 (Acquired Multiple Dates, Cost $142,463) 139,678
Kinder Morgan, Inc.
345,000 6.50%, 9/1/12 356,920
Kiowa Power Partners LLC - 144A (b)
210,917 4.81%, 12/30/13 (Acquired Multiple Dates, Cost $209,539) 204,007
Liberty Property-LP
155,000 7.75%, 4/15/09 163,946
Midwest Generation LLC
155,000 8.30%, 7/2/09 160,159
NY Life Global Funding - 144A (b)
387,000 3.88%, 1/15/09 (Acquired Multiple Dates, Cost $382,755) 372,706
Nextel Communications, Inc.
480,000 5.95%, 3/15/14 475,212
Nisource Finance Corp.
275,000 7.88%, 11/15/10 298,294
Pacific Life Global Funding - 144A (b)
120,000 3.75%, 1/15/09 (Acquired Multiple Dates, Cost $118,737) 116,183
Pemex Finance Ltd.
42,000 9.69%, 8/15/09 45,066
Pnpp II Funding Corp.
33,690 8.51%, 11/30/06 33,745
Premcor Refining Group, Inc./The
190,000 6.75%, 2/1/11 197,993
Premcor Refining Group, Inc./The
185,000 6.75%, 5/1/14 191,988
Pricoa Global Funding I - 144A (b) (c) (d)
230,000 4.89%, 3/3/09 (Acquired 3/1/06, Cost $230,000) 229,906
Progress Rail Services Corp./Progress Metal Reclamation Co. - 144A (b)
150,000 7.75%, 4/1/12 (Acquired 03/17/05, Cost $150,000) 156,000
Protective Life Secured Trust
155,000 4.00%, 10/7/09 149,090
Public Service Co. of Colorado
502,000 4.38%, 10/1/08 491,245
Residential Capital Corp.
590,000 6.38%, 6/30/10 594,378
Sithe/Independence Fndg.
471,199 8.50%, 6/30/07 478,569
Southern California Edison Co. (c)
360,000 5.25%, 2/2/09 359,965
Suntrust Bank
205,000 4.55%, 5/25/09 199,777
Telecom Italia Capital SA
410,000 4.88%, 10/1/10 394,789
Telefonos de Mexico SA de CV
162,000 4.50%, 11/19/08 157,524
Transcontinental Gas Pipe Line Corp.
536,000 6.25%, 1/15/08 540,690
Tyson Foods, Inc.
307,000 7.25%, 10/1/06 309,655
United States Steel Corp.
122,000 9.75%, 5/15/10 131,760
Visteon Corp.
177,000 7.00%, 3/10/14 136,290
Vodafone Group PLC
265,000 5.50%, 6/15/11 262,551
Westar Energy, Inc.
285,000 6.00%, 7/1/14 289,183
COLUMBUS CORE PLUS FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
Windsor Financing LLC - 144A (b)
$ 305,000 5.88%, 7/15/17 (Acquired 2/7/06, Cost $305,000) $ 303,069
--------------
TOTAL CORPORATE BONDS (COST $21,691,670) 21,381,033
--------------
FOREIGN GOVERNMENT BONDS 0.6%
Province of Quebec Canada
700,000 5.00%, 3/1/16 677,553
--------------
TOTAL FOREIGN GOVERNMENT BONDS (COST $693,255) 677,553
--------------
MORTGAGE BACKED SECURITIES 41.0%
Fannie Mae Pool
565,261 4.13%, 1/1/10 541,521
Fannie Mae Pool
164,352 4.50%, 2/1/13 158,521
Fannie Mae Pool
247,591 4.50%, 6/1/13 238,810
Fannie Mae Pool
250,114 5.00%, 6/1/13 244,959
Fannie Mae Pool
201,044 5.00%, 6/1/13 196,909
Fannie Mae Pool
286,582 4.50%, 7/1/13 276,417
Fannie Mae Pool
371,127 3.81%, 8/1/13 338,540
Fannie Mae Pool
128,095 5.00%, 8/1/13 125,455
Fannie Mae Pool
623,481 4.00%, 9/1/13 590,749
Fannie Mae Pool
880,279 5.00%, 2/1/15 865,139
Fannie Mae Pool
2,222,439 5.00%, 12/1/17 2,166,858
Fannie Mae Pool
212,295 4.50%, 6/1/18 203,037
Fannie Mae Pool
995,041 4.50%, 9/1/18 953,362
Fannie Mae Pool
667,167 4.50%, 6/1/19 638,073
Fannie Mae Pool
10,336 6.50%, 6/1/28 10,598
Fannie Mae Pool
3,600 6.50%, 11/1/28 3,691
Fannie Mae Pool
9,175 6.50%, 11/1/28 9,407
Fannie Mae Pool
11,268 6.50%, 11/1/28 11,554
Fannie Mae Pool
783 6.50%, 11/1/28 803
Fannie Mae Pool
5,991 6.50%, 3/1/29 6,142
Fannie Mae Pool
398,004 7.00%, 9/1/32 409,488
Fannie Mae Pool
2,628,864 6.00%, 4/1/35 2,629,970
COLUMBUS CORE PLUS FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
U.S. GOVERNMENT AGENCIES 9.0%
Fannie Mae Pool 15 Yr May TBA (a)
$ 600,000 5.00%, 5/1/21 $ 584,437
Fannie Mae Pool 15 Yr May TBA (a)
7,700,000 5.50%, 5/1/21 7,647,062
Fannie Mae Pool 30 Yr May TBA (a)
10,530,000 5.00%, 5/1/36 10,016,663
Fannie Mae Pool 30 Yr May TBA (a)
4,025,000 5.50%, 5/1/36 3,924,375
Fannie Mae Pool 30 Yr May TBA (a)
5,865,000 6.00%, 5/15/36 5,855,839
Fannie Mae Pool 30 Yr June TBA (a)
5,425,000 5.50%, 6/1/36 5,284,286
Fannie Mae Pool 30 Yr June TBA (a)
1,545,000 6.50%, 6/1/36 1,572,520
Freddie Mac Gold Pool
42,147 5.00%, 11/1/09 41,788
Freddie Mac Gold Pool
577,442 4.00%, 5/1/14 545,677
Freddie Mac Gold Pool
970,545 5.00%, 10/1/14 950,019
Freddie Mac Gold Pool
610,659 5.00%, 3/1/15 599,139
Freddie Mac Gold Pool
932,454 5.00%, 7/1/15 914,048
Freddie Mac Gold Pool
198,459 5.00%, 7/1/15 194,191
Freddie Mac Gold Pool
404,395 4.00%, 5/1/19 377,847
Freddie Mac Gold Pool
298,764 6.50%, 5/1/35 304,833
Ginne Mae I pool
1,104 8.25%, 7/15/07 1,122
Ginne Mae I pool
2,178 9.50%, 10/15/09 2,283
--------------
TOTAL MORTGAGE BACKED SECURITIES (COST $49,990,990) 49,436,132
--------------
Egypt Government AID Bonds
560,000 4.45%, 9/15/15 527,755
Federal Home Loan Bank System (d)
630,000 5.00%, 3/20/07 629,167
Freddie Mac (d)
4,170,000 5.50%, 7/15/06 4,175,250
Freddie Mac (d)
1,385,000 4.88%, 3/15/07 1,381,601
Freddie Mac
3,450,000 4.75%, 1/18/11 3,390,936
Israel Government AID Bonds
666,000 5.50%, 9/18/23 680,873
--------------
TOTAL U.S. GOVERNMENT AGENCIES (COST $10,866,454) 10,785,582
--------------
U.S. TREASURY BONDS, NOTES, & T-BILLS 15.8%
US Treasury Note
600,000 2.00%, 5/15/06 599,261
COLUMBUS CORE PLUS FUND
Schedule of Investments
March 31, 2006(Unaudited)
Principal
Amount Value
- ----------------- ---------------
US Treasury Bond
$ 4,190,000 4.25%, 11/15/14 $ 4,004,722
1,425,000 4.00%, 2/15/15 1,335,436
3,370,000 4.50%, 2/15/16 3,277,588
2,740,000 6.25%, 8/15/23 3,107,546
6,360,000 5.25%, 2/15/29 6,530,429
US Treasury Bonds (TIPS)
209,697 2.00%, 1/15/26 198,721
--------------
TOTAL U.S. TREASURY BONDS, NOTES, & T-BILLS (COST $19,297,912) 19,053,703
--------------
REPURCHASE AGREEMENTS 17.3%
20,899,000 Agreement with UMB Bank, N.A., 4.33%, dated 3/31/2006, to 20,899,000
be repurchased at $20,906,541 on 4/3/06, collaterized
by 2 U.S. Government Agency Obligations maturing 5/23/2007 &
11/30/2007, with a market value of $21,317,872.
--------------
TOTAL REPURCHASE AGREEMENTS (COST $20,899,000) 20,899,000
--------------
SHORT-TERM INVESTMENT 0.0%
10,481 UMB Bank Money Market Fiduciary 10,481
-------------
TOTAL SHORT-TERM INVESTMENT (COST $10,481) 10,481
--------------
TOTAL INVESTMENTS (COST $156,028,144) 128.3% 154,565,237
LIABILITIES LESS OTHER ASSETS (28.3%) (34,105,407)
--------------
NET ASSETS 100.0% $ 120,459,830
==============
(a) When-issued security
(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. The total value of securities
amounted to $3,268,068 (2.7% of net assets) at March 31, 2006. These securities
have been determined to be illiquid under guidelines established by the Board
of Directors.
(c) Variable Rate Securities
(d) Security marked as segregated to cover when-issued security.
Underlying Unrealized
Expiration Notional Appreciation/
SWAP CONTRACTS Date Value (USD) (Depreciation)
----------------------------------------
Credit default contract with JP Morgan Chase Bank N.A., Fund receives 3/20/2011 550,000 9,808
quarterly payment of 1.2875 (5.15 per annum) BPS times the notional
amount of Ford Motor Credit Co. 7.00%, 10/01/2013.
Upon a defined credit event, Fund receives notional amount and delivers a
defined deliverable obligation.
Credit default contract with JP Morgan Chase Bank N.A., Fund receives 3/20/2011 1,500,000 18,466
quarterly payment of 1.433 (4.3 per annum) BPS times the notional
amount of General Motors Acceptance Corp. 6.875%, 08/28/2012.
Upon a defined credit event, Fund receives notional amount and delivers a
defined deliverable obligation.
COLUMBUS CORE FUND
Statement of Assets and Liabilities
March 31, 2006 (Unaudited)
ASSETS:
Investments, at value (cost $28,790,970) $ 28,413,945
Cash 11,947
Receivable for securities sold 6,069,694
Interest receivable 137,551
Due from Advisor 17,334
Prepaid expenses 9,740
------------
Total assets 34,660,211
------------
LIABILITIES:
Payable for securities purchased 12,314,289
Other accrued expenses 22,035
------------
Total liabilities 12,336,324
------------
NET ASSETS $ 22,323,887
============
NET ASSETS CONSIST OF:
Paid-in-capital $ 23,077,068
Undistributed net investment income 6,998
Accumulated undistributed net
realized loss on investments (383,154)
Net unrealized depreciation on investments (377,025)
------------
NET ASSETS $ 22,323,887
============
(NET ASSETS DIVIDED BY SHARES OUTSTANDING)
SHARES OUTSTANDING, $0.0001 PAR VALUE,
(UNLIMITED SHARES AUTHORIZED) 2,306,251
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 9.68
(NET ASSETS DIVIDED BY SHARES OUTSTANDING) ============
See notes to financial statements.
COLUMBUS CORE FUND
Statement of Operations
For the Period Ended March 31, 2006 (Unaudited)
INVESTMENT INCOME:
Interest $ 498,768
---------
Total investment income 498,768
---------
EXPENSES:
Investment advisory fees 39,939
Administration and fund accounting fees 19,004
Custody fees 21,300
Shareholder servicing fees 15,386
Professional fees 15,339
Pricing expense 12,109
Federal and state registration fees 4,340
Reports to shareholders 2,959
Directors' fees and expenses 2,959
Other expenses 465
---------
Total expenses before waiver and reimbursement of expenses 133,800
Less: Waiver and reimbursement of expenses (110,765)
---------
Net expenses 23,035
---------
NET INVESTMENT INCOME 475,733
---------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized loss on investments (372,730)
Change in unrealized depreciation on investments (152,698)
---------
Net loss on investments (525,428)
---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ (49,695)
=========
See notes to financial statements.
COLUMBUS CORE FUND
Statement of Changes in Net Assets
Period Ended Fiscal Year Ended
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005(1)
OPERATIONS:
Net investment income $ 475,733 $ 660,049
Net realized loss on investments (372,730) 175,983
Change in unrealized depreciation on investments (152,698) (224,327)
--------------- ---------------
Net decrease in net assets resulting from operations (49,695) 611,705
--------------- ---------------
DISTRIBUTIONS PAID FROM:
Net investment income (469,547) (660,049)
Net realized gain (135,511) (50,896)
--------------- ---------------
Total distributions (605,058) (710,945)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 163,366 24,416,102
Shares issued to shareholders in reinvestment of distributions 539,477 710,945
Cost of shares redeemed (752,010) (2,000,000)
--------------- ---------------
Net increase from capital share transactions (49,167) 23,127,047
--------------- ---------------
TOTAL INCREASE IN NET ASSETS (703,920) 23,027,807
NET ASSETS:
Beginning of period 23,027,807 -
--------------- ---------------
End of period $ 22,323,887 $ 23,027,807
=============== ===============
TRANSACTIONS IN SHARES
Shares sold 16,407 2,440,491
Shares issued to shareholders in reinvestment of distributions 54,901 70,986
Shares redeemed (75,731) (200,803)
--------------- ---------------
Net increase (4,423) 2,310,674
=============== ===============
(1)Commenced operations on November 30, 2004.
See notes to financial statements.
COLUMBUS CORE FUND
Financial Highlights
For a Fund Share Outstanding Throughout the Period.
Period Ended Period Ended
March 31, 2005 September 30,
(Unaudited) 2005(1)
------------- -------------
Net Asset Value, Beginning of Period $ 9.97 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.21 0.34
Net realized and unrealized loss on investments (0.24) (0.03)
------------- -------------
Total from investment operations (0.03) 0.31
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (0.20) (0.32)
Dividend from realized gain (0.06) (0.02)
------------- -------------
Total distributions (0.26) (0.34)
------------- -------------
NET ASSET VALUE, END OF PERIOD $ 9.68 $ 9.97
============= =============
TOTAL RETURN(2) (0.31)% 3.14%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of year/period $ 22,323,887 $ 23,027,807
Ratio of expenses to average net assets(3) 0.20% 0.20%
Ratio of expenses before waivers to average net assets(3) 1.17% 1.39%
Ratio of net investment income to average net assets(3) 4.17% 3.90%
Ratio of net investment income
before waivers to average net assets(3) 3.20% 2.71%
Portfolio turnover rate(2) 609% 732%
(1)Commenced operations on November 30, 2004.
(2)Not annualized for periods less than a year
(3)Annualized
See notes to financial statements.
COLUMBUS CORE PLUS FUND
Statement of Assets and Liabilities
March 31, 2006 (Unaudited)
ASSETS:
Investments, at value (cost $156,028,144) $ 154,565,237
Cash 302,959
Receivable for securities sold 31,553,141
Receivable for unrealized appreciation
on open swap contracts 28,274
Interest receivable 797,042
Due from Advisor 10,667
Prepaid expenses 25,510
-------------
Total assets 187,282,830
-------------
LIABILITIES:
Payable for securities purchased 66,803,813
Other accrued expenses 19,187
-------------
Total liabilities 66,823,000
-------------
NET ASSETS $ 120,459,830
=============
NET ASSETS CONSIST OF:
Paid-in-capital $ 123,656,332
Undistributed net investment income 33,117
Accumulated undistributed net realized
loss on investments (1,794,986)
Net unrealized depreciation on
investments and swaps (1,434,633)
-------------
NET ASSETS $ 120,459,830
=============
SHARES OUTSTANDING, $0.0001 PAR VALUE,
(UNLIMITED SHARES AUTHORIZED) 12,401,626
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 9.71
(NET ASSETS DIVIDED BY SHARES OUTSTANDING) =============
See notes to financial statements.
COLUMBUS CORE PLUS FUND
Statement of Operations
For the Period Ended March 31, 2006 (Unaudited)
INVESTMENT INCOME:
Interest $ 2,451,590
-----------
Total investment income 2,451,590
-----------
EXPENSES:
Investment advisory fees 180,401
Administration and fund accounting fees 51,544
Professional fees 52,675
Shareholder servicing fees 16,811
Custody fees 14,959
Pricing Expense 13,594
Directors' fees and expenses 12,717
Reports to shareholders 4,453
Federal and state registration fees 1,496
Other expenses 715
-----------
Total expenses before waiver and reimbursement of expenses 349,365
Less: Waiver and reimbursement of expenses (246,278)
-----------
Net expenses 103,087
-----------
NET INVESTMENT INCOME 2,348,503
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized loss on investments (1,727,177)
Change in unrealized depreciation on investments (578,988)
Change in unrealized depreciation on swaps 28,274
-----------
Net loss on investments (2,277,891)
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 70,612
===========
See notes to financial statements.
COLUMBUS CORE PLUS FUND
Statement of Changes in Net Assets
PERIOD ENDED FISCAL YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005 (1)
----------- -----------
OPERATIONS:
Net investment income $ 2,348,503 $ 2,714,097
Net realized loss on investments (1,727,177) 1,053,589
Change in unrealized depreciation on investments (550,714) (883,919)
----------- -----------
Net decrease in net assets resulting from operations 70,612 2,883,767
----------- -----------
DISTRIBUTIONS PAID FROM:
Net investment income (2,317,730) (2,669,946)
Net realized gains (873,192) (292,357)
----------- -----------
Total distributions (3,190,922) (2,962,303)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 22,012,510 97,069,368
Shares issued to shareholders in reinvestment of distributions 3,114,496 2,962,302
Payments for shares redeemed (1,500,000) -
----------- -----------
Net increase from capital share transactions 23,627,006 100,031,670
----------- -----------
TOTAL INCREASE IN NET ASSETS 20,506,696 99,953,134
NET ASSETS:
Beginning of period 99,953,134 -
----------- -----------
End of period $ 120,459,830 $ 99,953,134
=========== ===========
TRANSACTIONS IN SHARES
Shares sold 2,254,722 9,689,604
Shares issued to shareholders in reinvestment of distributions 316,610 294,694
Shares redeemed (154,004) -
----------- -----------
Net increase 2,417,328 9,984,298
=========== ===========
(1)Commenced operations on November 30, 2004.
See notes to financial statements.
COLUMBUS CORE PLUS FUND
Financial Highlights
For a Fund Share Outstanding Throughout the Period.
Period Ended Period Ended
March 31, 2006 September 30,
(Unaudited) 2005(1)
-------------------- -------------------
Net Asset Value, Beginning of Period $ 10.01 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.22 0.34
Net realized and unrealized gain on investments (0.21) 0.01
-------------------- -------------------
Total from investment operations 0.01 0.35
-------------------- -------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (0.22) (0.31)
Dividends from realized gain (0.09) (0.03)
-------------------- -------------------
Total distributions (0.31) (0.34)
-------------------- -------------------
NET ASSET VALUE, END OF PERIOD $ 9.71 $ 10.01
==================== ===================
TOTAL RETURN(2) 0.05% 3.49%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of year/period $ 120,459,830 $ 99,953,134
Ratio of expenses to average net assets(3) 0.20% 0.20%
Ratio of expenses before waivers to average net assets(3) 0.68% 0.81%
Ratio of net investment income to average net assets(3) 4.56% 3.90%
Ratio of net investment income
before waivers to average net assets(3) 4.08% 3.29%
Portfolio turnover rate(2) 696% 890%
(1)Commenced operations on November 30, 2004.
(2)Not annualized for periods less than a year
(3)Annualized
See notes to financial statements.
Columbus Funds, Inc.
March 31, 2006 (Unaudited)
1. ORGANIZATION
Columbus Funds, Inc. (the "Company"), which consists of the Columbus Low
Duration Fund ("Low Duration"), Columbus Intermediate Fund
("Intermediate"), Columbus Core Fund ("Core") and Columbus Core Plus Fund
("Core Plus), is a Maryland company incorporated on July 3, 2003. The
Company is currently offering shares of the Core and Core Plus Funds (the
"Funds") to investors. The Core and Core Plus Funds commenced operations
after the close of business on November 30, 2004. Shares of the Low
Duration and Intermediate Funds are not currently being offered. The
Company is an open-end diversified series management investment company
registered under the Investment Company Act of 1940 (the "1940 Act").
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of its financial
statements. These policies are in conformity with accounting principles
generally accepted in the United States of America ("GAAP") for
investment companies. The presentation of financial statements in
conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income
and expenses during the reporting period. Actual results may differ from
such estimates.
INVESTMENT VALUATION - Long-term fixed income securities are valued at
market prices using pricing information provided by an independent
pricing service. When in the judgment of the pricing service quoted bid
prices are readily available, these investments are valued at the mean of
the quoted bid and ask prices. Short-term securities having a maturity of
60 days or less are valued at amortized cost, which approximates market
value. Common stocks and other equity-type securities are valued at the
last sales price on the national securities exchange on which such
securities are primarily traded, or for Nasdaq-listed securities, the
official closing price. Securities for which market quotations are not
readily available are valued at their fair value as determined in good
faith using procedures approved by the Funds' Board of Directors. These
procedures include, but are not limited to, the Pricing Committee
directing that valuations published by a pricing service be used to value
securities for which daily prices are not readily available (which may
constitute a significant number of long-term fixed income securities).
Values are determined by the pricing service using methods which include
consideration of yields or prices of securities of comparable quality,
coupon, maturity, and type, indications as to values from dealers and
general market conditions.
ILLIQUID INVESTMENTS - The Funds may invest up to 15% of their respective
net assets in illiquid securities (i.e., securities that are not readily
marketable). Illiquid securities include, but are not limited to,
restricted securities (securities the disposition of which is restricted
under the federal securities laws), repurchase agreements with maturities
in excess of seven days, and other securities that are not readily
marketable. The Board of Directors of the Company, or its delegate, has
the ultimate authority to determine which securities are liquid or
illiquid for purposes of this 15% limitation. At March 31, 2006, 3.5% and
2.7% of the Core and Core Plus Funds' net assets respectively were
illiquid.
The Board of Directors has delegated to the Adviser the day-to-day
determination of the liquidity of any security, although it has retained
oversight and ultimate responsibility for such determinations. Although
no definitive liquidity criteria are used, the Board of Directors has
directed the Adviser to look to such factors as (i) the nature of the
market for a security (including the institutional private resale
market), (ii) the terms of certain securities or other instruments
allowing for the disposition to a third party or the issuer thereof
(e.g., certain repurchase obligations and demand instruments), (iii) the
availability of market quotations, and (iv) other permissible relevant
factors.
Restricted securities may be sold only in privately negotiated
transactions or in a public offering with respect to which a registration
statement is in effect under the Securities Act. Where registration is
required, the Funds may be obligated to pay all or part of the
registration expenses and a considerable period may elapse between the
time of the decision to sell and the time the Funds may be permitted to
sell a security under an effective registration statement. If, during
such a period, adverse market conditions were to develop, the Funds might
obtain a less favorable price than that which prevailed when it decided
to sell.
Columbus Funds, Inc.
March 31, 2006 (Unaudited)
LIQUIDITY - The Funds may have difficulty disposing of certain
lower-quality and comparable unrated securities because there may be a
thin trading market for such securities. Because not all dealers maintain
markets in all lower-quality and comparable unrated securities, there is
no established retail secondary market for many of these securities. To
the extent a secondary market does exist for these securities, it is
generally not as liquid as the secondary market for higher-rated
securities. The lack of a liquid secondary market may have an adverse
impact on the market price of the security.
SWAPS - The Funds may enter into various swap transactions, including
interest rate, securities index, commodity, or security and currency
exchange rate swaps. Unrealized gains are reported as an asset and
unrealized losses are reported as a liability on the Statement of Assets
and Liabilities. The change in value of swaps, including accruals of
periodic amounts of interest to be paid or received on swaps is reported
as unrealized gains or losses in the Statement of Operations. A realized
gain or loss is recorded upon payment or receipt of a periodic payment or
termination of the swap agreements. Notional principal amounts are used
to express the extent of involvement in these transactions, but the
amounts potentially subject to credit risk are much smaller.
The Funds may also engage in credit default contracts which involve the
exchange of a periodic premium for protection against a defined credit
event (such as payment of default or bankruptcy). Under the terms of the
contract, on party acts as a guarantor receiving a periodic payment that
is a fixed percentage applied to a notional principal amount. In return
the party agrees to purchase the notional amount of the underlying
instrument, at pat, if a credit event occurs during the term of the
contract. The Funds may enter into credit default contracts in which they
or their counterparties act as guarantors. By acting as the guarantor of
the contract, the Funds assume the market and credit risk of the
underlying instrument including liquidity and loss of value.
Premiums paid to or by the Funds are accrued daily and included in
realized gain (loss) on swaps in the accompanying Statement of
Operations. The contracts are marked-to-market daily based on
dealer-supplied valuations and changes in value are recorded as
unrealized appreciation (depreciation). Gains or losses are realized upon
early termination of the contract. Risks may exceed amounts recognized in
the Statement of Assets and Liabilities. These risks include changes in
the returns of the underlying instruments, failure of the counterparties
to perform under the contracts' terms and the possible lack of liquidity
with respect to the contacts.
As of March 31, 2006, the Funds had outstanding swap agreements as listed
on their Schedules of Portfolio Investments.
FEDERAL INCOME TAXES - It is the Fund's policy to meet the requirements
of the Internal Revenue Code applicable to regulated investment companies
and to distribute substantially all investment company net taxable income
and net capital gains to shareholders in a manner which results in no tax
cost to the Fund. Therefore, no federal income tax or excise tax
provision has been made.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME - Securities transactions
are accounted for on a trade date basis. Realized gains and losses from
securities transactions are recorded on the identified cost basis.
Dividend income is recognized on the ex-dividend date and interest income
is recognized daily on an accrual basis. Discounts and premiums on
securities purchased are amortized over the lives of the respective
securities using the effective yield method.
DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment income are
declared and paid monthly. Distributions of net realized capital gains,
if any, are declared and paid at least annually.
Columbus Funds, Inc.
March 31, 2006 (Unaudited)
Distributions to shareholders are determined in accordance with federal
income tax regulations and are recorded on the ex-dividend date. The
character of distributions made during the year from net investment
income or net realized gains may differ from the characterization for
federal income tax purposes due to differences in the recognition of
income, expense and gain items for financial statement and tax purposes.
Where appropriate, reclassifications between net asset accounts are made
for such differences that are permanent in nature.
EXPENSES - Expenses that are directly related to one fund are charged
directly to that fund. Common expenses are allocated to each fund on the
basis of relative assets.
3. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding U.S.
Government securities and short-term investments, for the Funds for the
period ended March 31, 2006, were as follows:
Purchases Sales
------------ ------------
Core $ 68,470,067 $ 68,737,163
Core Plus 351,051,862 328,644,707
The aggregate purchases and sales of long-term U.S. Government
securities, for the Funds for the period ended March 31, 2006, were as
follows:
Purchases Sales
------------ ------------
Core $ 85,083,629 $ 86,592,630
Core Plus 450,816,985 457,175,899
4. RELATED PARTY TRANSACTIONS
The Company has an investment advisory agreement (the "Advisory
Agreement") with Reams Asset Management Company LLC (the "Adviser"), with
whom certain officers and directors of the Company are affiliated, to
furnish investment advisory services to the Funds. Under the terms of the
Advisory Agreement the Core and Core Plus Funds compensate the Adviser at
the annual rate of 0.35% of each Fund's average daily net assets.
Pursuant to an agreement with each Fund, the Adviser will waive its
management fee and/or reimburse each Fund's other expenses, including
organization expenses, so that total operating expenses (on an annual
basis) do not exceed 0.20% of the Core Fund's average daily net assets,
and 0.20% of the Core Plus Fund's average daily net assets (the "Expense
Limitation Caps"), until January 31, 2007. After such date, the Adviser
may from time to time voluntarily waive all or a portion of its fee
and/or absorb expenses for the Funds. During the period ended March 31,
2006, the Adviser waived investment advisory fees for the Core and Core
Plus Funds of $39,939 and $180,401, respectively, and reimbursed the Core
and Core Plus Funds $70,826 and $65,877, respectively, for other
expenses. Any such waiver/absorption is subject to later adjustment
during the term of the Advisory Agreement to allow the Adviser to recoup
amounts waived/absorbed to the extent actual fees and expenses for a
period are less than the Expense Limitation Caps, provided, however,
that, the Adviser shall only be entitled to recoup such amounts for a
maximum period of three years following the fiscal year in which such
amount was waived or reimbursed. At March 31, 2006, the following amounts
are subject to recoupment through September 30, 2008, and March 31, 2009,
respectively.
Expires Expires
September 30, 2008 March 31, 2009
Core Fund $200,661 $110,765
Core Plus Fund 423,306 246,278
Columbus Funds, Inc.
March 31, 2006 (Unaudited)
The Company has entered into agreements with UMB Bank, n.a. to provide
custodial services. In addition, the Funds have entered into agreements
with UMB Fund Services, Inc., an affiliate of UMB Bank, n.a., to provide
administration, fund accounting and transfer agency services. Under the
terms of the custody agreement, the Funds sweep excess cash daily into an
interest bearing demand deposit account with UMB Bank, n.a.
5. FEDERAL INCOME TAX INFORMATION
At March 31, 2006, gross unrealized appreciation and depreciation on
investments, based on aggregate cost for federal income tax purposes were
as follows:
Core Core Plus
-------------------- -----------------------
Gross unrealized appreciation $ 901 $ 2,136,387
Gross unrealized depreciation (513,575) (4,036,057)
-------------------- -----------------------
Net unrealized
appreciation/depreciation on investments $ (512,674) $ (1,899,670)
==================== =======================
Cost of securities on a tax basis $ 28,926,619 $ 156,464,907
==================== =======================
The difference between cost amounts for financial statement and federal
income tax purposes is due primarily to timing differences in recognizing
certain gains and losses in security transactions.
As of September 30, 2005, the components of accumulated earnings for the
Core and Core Plus Funds, were as follows:
Core Core Plus
--------------------- -----------------------
Undistributed ordinary income $ 136,323 $ 875,529
Undistributed long-term capital gains --- ---
--------------------- -----------------------
Accumulated earnings 136,323 875,529
Accumulated Capital and Other Losses --- ---
Unrealized Appreciation (234,751) (951,721)
--------------------- -----------------------
Total Accumulated Earnings $ (98,428) $ (76,192)
===================== =======================
The tax character of distributions paid during the period ended September
30, 2005, for the Core and Core Plus Funds, were as follows:
Period Ended Period Ended
September 30, 2005 September 30, 2005
------------------ ------------------
Core Core Plus
Distributions paid from:
Ordinary income $710,945 $2,962,302
Net long-term capital gains -- --
-------- ----------
Total taxable distributions 710,945 2,962,302
Exempt interest -- --
-------- ----------
Total distributions paid $710,945 $2,962,302
======== ==========
Columbus Funds, Inc.
March 31, 2006 (Unaudited)
PROXY VOTING POLICIES, PROCEDURES AND VOTING RECORD
For a description of the policies and procedures that the Funds uses to
determine how to vote proxies relating to portfolio securities, please
call 1-888-416-0400 and request a Statement of Additional Information.
One will be mailed to you free of charge. The Statement of Additional
Information is also available on the website of the Securities and
Exchange Commission at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is
available (1) without charge, upon request, by calling 1-888-416-0400,
and (2) on the SEC's website at http://www.sec.gov.
PORTFOLIO HOLDINGS DISCLOSURE
The Funds will file their complete schedule of portfolio holdings with
the SEC for the first and third quarters of each fiscal year on Form N-Q.
The Funds' Form N-Q will be available on the EDGAR database on the SEC's
website at http://www.sec.gov. These Forms may also be reviewed and
copied at the SEC's Public Reference Room in Washington D.C. Information
about the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
APPROVAL OF INVESTMENT ADVISORY CONTRACTS
On November 11, 2005, at an in-person meeting of the Board of Directors
of the Columbus Funds, Inc. (the "Company"), the directors, including a
majority of the disinterested directors, approved the continuation of the
Advisory Agreement between the Company and the Adviser. In approving the
Advisory Agreement, the Board reviewed materials provided by the Adviser,
including a memorandum describing, among other things, the qualifications
of the Adviser, the scope of services to be provided to the Funds and the
prior performance of the Adviser. The Board also reviewed other
information relating to the advisory services to be provided to the
Funds, including certain comparative data provided by a third party
service provider. The Board of Directors then considered a number of
factors in approving the Advisory Agreement.
The Board of Directors then considered the nature, extent and quality of
services to be provided to the Funds by the Adviser. It was noted that
the Adviser has significant experience providing investment advice
involving fixed-income securities and is qualified to provide investment
advisory services to the Funds. The Board then considered the prior
performance of the Adviser, including the investment results achieved by
the Adviser for the Corporate Opportunity Fund, comparable separate
accounts and other registered investment companies. It was noted that the
prior performance of the Adviser was favorable in comparison to the
relevant benchmarks and that of comparable investment companies and
separate accounts. The Board considered information relating to each
Fund's fees, costs and expense ratios and compared such fees, costs and
expense ratios to competitive industry fee structures and expense ratios.
It was noted that each Fund's advisory fees are generally competitive
with comparable funds. In connection with its consideration of each
Fund's advisory fees, the Board also considered the control of the
Company's operating expenses through expense cap agreements, and noted
that the current expense cap agreements were favorable in comparison to
similar funds as evidenced by the comparative data presented at the
meeting. In addition, the Board noted that the Adviser is providing
substantially similar investment advisory services to both the Funds and
its other clients and, with the current expense cap arrangements in
place, providing such services to the Funds at a lower rate than the rate
generally charged to the Adviser's other clients. The Board also
considered the Adviser's financial ability to support the current expense
cap arrangements and noted that the Adviser appeared to have adequate
resources to support such arrangements. The Board considered whether the
Adviser would receive any fall-out benefits through its relationship with
the Funds, and it was noted that because none of the other service
providers to the Funds are affiliated with the Adviser, and the Adviser
is currently subsidizing the operation of the Funds, there are no
identifiable material fall-out benefits accruing to the Adviser. The
Board also considered the Adviser's cost of providing services to the
Funds and the profitability (if any) of its relationship to the Funds,
and noted that with the current expense cap agreements, the Adviser is
currently subsidizing the Funds to a significant extent. Finally, the
Board considered whether economies of scale would justify lower fees for
the Funds. The Board noted that while the Funds grew over the past year,
the Adviser continues to subsidize the Funds and no economies of scale
have yet been realized.
Columbus Funds, Inc.
March 31, 2006 (Unaudited)
In its deliberations, the Board did not identify any single consideration
or particular piece of information that was all important or controlling
in determining whether to approve the advisory agreement, although
significant weight was accorded the advisory fee levels relative to
industry averages for competitive products based on the comparative data
presented at the meeting. The Board evaluated all information presented
to it and determined that the compensation paid to the Adviser under the
advisory agreement was fair and reasonable in light of the services to be
performed and such other matters as the Board (and each director)
considered relevant in the exercise of its (or such directors) reasonable
judgment.
Item 2 - Code of Ethics
Not applicable to semi-annual reports.
Item 3 - Audit Committee Financial Expert
Not applicable to semi-annual reports.
Item 4 - Principal Accountant Fees and Services
Not applicable to semi-annual reports.
Item 5 - Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
The schedule of investments in securities of unaffiliated issuers is included as
part of the report to shareholders filed under Item 1.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable.
Item 10 - Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11 - Controls and Procedures
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended)
are effective, 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 Investment Company Act of 1940,
as amended) that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12 - Exhibits
(a)(1) Code of Ethics
Not applicable to semi-annual reports.
(b) Certifications required pursuant to Section 302 and 906 of the Sarbanes-
Oxley Act of 2002 are filed herewith.
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.
Columbus Funds, Inc.
By: /s/Mark M. Egan
-------------------------
Mark M. Egan
President
Date: June 9, 2006
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/Mark M. Egan
------------------------
Mark M. Egan
President
Date: June 9, 2006
By: /s/David B. McKinney
---------------------------
David B. McKinney
Treasurer
Date: June 9, 2006