-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, ixUCGHRKRpOXMkIQYE+pIj3AghT9sU7Z0hKsfNgDbHu4Wcr7xwJJU4EXQTxlvH/f g58wgqWXjeRwQkkvCUsiew== 0000889386-94-000011.txt : 19941003 0000889386-94-000011.hdr.sgml : 19941003 ACCESSION NUMBER: 0000889386-94-000011 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940731 FILED AS OF DATE: 19940930 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRADEMARK FUNDS CENTRAL INDEX KEY: 0000889386 STANDARD INDUSTRIAL CLASSIFICATION: 0000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07057 FILM NUMBER: 94551063 BUSINESS ADDRESS: STREET 1: FEDERATED INVESTORS TOWER STREET 2: NULL CITY: PITTSBURGH STATE: PA ZIP: 15222-3779 BUSINESS PHONE: 4122881401 MAIL ADDRESS: STREET 1: NULL FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY NATIONAL BANK FUNDS DATE OF NAME CHANGE: 19920710 N-30D 1 - ------------------------------------------------------------------------------- TRADEMARK - ------------------------------------------------------------------------------- FUNDS - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- COMBINED SEMI-ANNUAL REPORT TO SHAREHOLDERS JULY 31, 1994 LIBERTY NATIONAL BANK And Trust Company Kentucky Investment Adviser [LOGO] LIBERTY NATIONAL BANK AND TRUST COMPANY OF KENTUCKY - --------------------------------------------------- Investment Adviser FEDERATED SECURITIES CORP. - --------------------------------------------------- Distributor G00491-01 892544107 892544206 892544305 892544404 PRESIDENT'S MESSAGE - -------------------------------------------------------------------------------- Dear Shareholder: I am pleased to present the July 31, 1994, Semi-Annual Report to Shareholders of the Trademark Funds (the "Funds"). This report includes complete financial information--including the investment portfolios--for: Trademark Equity Fund, Trademark Kentucky Municipal Bond Fund, Trademark Short-Intermediate Government Fund, and Trademark Government Income Fund. Thank you for choosing the Trademark Funds to pursue your financial goals. Remember, you have free exchange privileges among these Funds, so you can easily diversify your investments as your needs change. We'll continue to provide you with the highest level of service possible as we keep you up-to-date on your investment. Of course, your questions and comments are always welcome. Sincerely, Edward C. Gonzales President September 15, 1994 INVESTMENT REVIEW - -------------------------------------------------------------------------------- TRADEMARK EQUITY FUND Q The recent series of interest rate increases had a negative effect on the financial markets. How did the stock market react? A The equity market as measured by the Standard & Poor's 500 ("S&P 500")* fell 3.5% during the six month period ended July 31, 1994, due to declines which occurred in February, March, and June. The declines in February and March were in response to stronger than expected economic growth which fueled inflation concerns and resulted in a shift in Federal Reserve Board policy to higher interest rates. Inflation worries related to the falling dollar resulted in another market decline during the month of June. Q In this environment, how did the Trademark Equity Fund (the "Fund") perform relative to the overall stock market? A The Fund outperformed the market during the last six months, declining 1.0% versus the 3.5% drop in the S&P 500.* The Fund significantly outperformed the market in the down months of February and June falling less than 40% of the decline experienced by the S&P 500. Q What notable purchases and sales did you make for the Fund's portfolio and why? A We purchased Echlin, Ford Motor, Illinois Tool Works, and CBS stocks which all appeared to be undervalued based upon earnings prospects. Echlin's future growth is expected to benefit from tightened auto emission guidelines, the age of vehicles on the road, and improving overseas markets. Ford Motor's fundamental outlook is favorable due to a continuation of strong domestic auto markets and signs of improving overseas markets. Illinois Tool Works ("ITW"), is a manufacturer of highly engineered fasteners, components, assemblies and systems with strong market positions in a broad variety of products. ITW's future growth appears promising in view of its strong record of selecting products, through acquisition and internal product development, that secure strong market positions. CBS shares were purchased as we believe that the company will be successful in replacing lost affiliates to the Fox Network and will continue to be a leader in programing. We sold the holdings in American Stores, General Motors Class E, and Microsoft due to valuation considerations. The sale of K-Mart was made due to a deteriorating fundamental outlook. * This index is unmanaged. - -------------------------------------------------------------------------------- Q With uncertainties continuing about the direction of interest rates, what is your outlook for the Fund, and what comments can you offer to our shareholders? A As of the end of July, we continue to believe that the equity market appears modestly undervalued despite higher interest rates. The outlook remains promising that earnings and dividend increases will be favorable for the balance of the year. Adherence to our bottom up approach of emphasizing issues with positive fundamentals and attractive valuation characteristics will continue to be emphasized in our security selection process. We believe that our disciplined approach of identifying issues within both the value and growth categories will prove to be beneficial by attempting to provide relative consistency in a stock market which will likely continue to exhibit continued volatility and rotation among market sectors and investment themes. INVESTMENT REVIEW - -------------------------------------------------------------------------------- TRADEMARK KENTUCKY MUNICIPAL BOND FUND Q Can you discuss recent developments in the municipal bond market, particularly the series of interest rate increases which caused bond prices to fall? A Boosted by mortgage refinancings, the economy accelerated sharply during the fourth quarter of 1993, and yields, including municipals, surged upward in the first half of 1994 as bond market participants reacted to heightened inflation concerns and weakness in the dollar. However, reported inflation was low and continues at a very modest rate. We expect the pace of the economic advance to slow late this year or early in 1995. Q In this environment, how did the Trademark Kentucky Municipal Bond Fund (the "Fund") perform? A As shown in the illustration below, intermediate term yields have certainly not been immune to the huge increase in yields that has occurred all along the yield curve this year. Of course, when yields rise, prices of bonds decline, with the degree of weakness largely dependent upon the duration or maturity of the issue or portfolio. In this adverse climate for fixed income investments, the Fund, with a weighted average maturity of 11.4 years, reported a negative return of 3.51%* for the six-month period ended July 31, 1994. This was in line with the 3.49% negative return of the Shearson Ten Year Municipal Index for the same period.** Graphic representation "A" omitted. See Appendix * Performance quoted represents past performance. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. ** This index is unmanaged. - -------------------------------------------------------------------------------- Q What is the general economic condition of Kentucky? Has it affected your strategy for the Fund? A The Kentucky economy has also been relatively strong this year; it has not affected our strategy. Q What is your outlook for the Fund given the uncertain state of interest rates, and what comments can you offer to our tax-sensitive Kentucky shareholders? A We continue to expect moderate economic growth and relatively benign inflation over coming months. While intermediate term yields may be close to their highs, we do not currently anticipate more than a relatively modest decline later this year. Given the steeply rising yield curve, a significant change in the structure of the portfolio is probably unlikely over coming weeks. Q What is your outlook for the Fund, in general and what comments can you offer to our shareholders? A We continue to expect slow to moderate economic growth and relatively benign inflation in 1995. While intermediate term yields may be close to their highs, we do not currently anticipate more than a relatively modest decline. Given the steeply rising yield curve, a significant change in the structure of the portfolio is probably unlikely over coming weeks. INVESTMENT REVIEW - -------------------------------------------------------------------------------- TRADEMARK SHORT-INTERMEDIATE GOVERNMENT FUND Q Can you discuss recent developments in the bond market, particularly the series of interest rate increases which caused bond prices to fall? A Boosted by mortgage refinancings, the economy accelerated sharply during the fourth quarter of 1993, and yields surged upward in the first half of 1994, as bond market participants reacted to heightened inflation concerns and weakness in the dollar. However, reported inflation was low and continues at a very modest rate. We expect the pace of the economic advance to slow later this year or early in 1995. Q In this environment, how did the Trademark Short-Intermediate Government Fund (the "Fund") perform compared to its benchmark? A As shown in the illustration below, intermediate term yields have certainly not been immune to the huge increase in yields that has occurred all along the yield curve this year. Of course, when yields rise, prices of bonds decline, with the degree of weakness largely dependent upon the duration or maturity of the issue or portfolio. In this adverse climate for fixed income investments, the Fund with a weighted average maturity of 4.1 years reported a negative return of 2.39%* for the six-month period ended July 31, 1994. This compared with the comparable Merrill Lynch 3-5 year Treasury Index** which was down 1.59% in the same period. Graphic representation "B" omitted. See Appendix * Performance quoted represents past performance. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. ** This index is unmanaged. - -------------------------------------------------------------------------------- Q Did you adjust your strategy during the period? A No. We believe that at least part of the rise in intermediate term yields may be reversed late this year or in 1995. Q What are your expectations for the interest rate environment and how do they affect your investment strategy? A The chart listed below represents the actual performance of the stated indices and the Investment Group's forecast for the rest of 1994, and the first two quarters of 1995. All of the items listed below, taken together, assist the Investment Group in planning strategy for the period. INVESTMENT GROUP FORECAST
ACTUAL FORECAST -------------------------------------------------------------- --------------------------------------------------- 4TH 1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH 1ST 2ND QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER 1992 1993 1993 1993 1993 1994 1994 1994 1994 1995 1995 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Real Gross Domestic Product ("GDP") 5.7% 0.8% 1.8% 2.9% 6.3% 3.3% 3.8% 3.5% 3.0% 2.0% 2.0% - --------- GDP Deflator 2.3% 3.3% 2.3% 1.8% 1.3% 2.9% 2.9% 3.5% 3.5% 2.0% 2.5% - --------- 30 Yr. Bond Yields* 7.5% 7.1% 6.9% 6.0% 6.3% 6.6% 7.4% 7.6% 7.8% 7.3% 7.2% - --------- Federal Fund Rate 3.1% 3.0% 3.0% 3.0% 3.0% 3.2% 4.0% 4.7% 5.3% 5.3% 5.3% - --------- S&P 500 EPS (saar) $18 $21 $18 $24 $25 $24 $28 $30 $32 $33 $34 - ---------
Definitions: Real Gross Domestic Product (GDP)--primary measure of production of goods and services made with labor and property located in the U.S.A. over a particular period of time, usually one year. Deflator--statistical factor or device designed to adjust the difference between real or constant value and value affected by inflation. S&P 500 EPS--Average earnings per share of a stock based upon the S&P 500. (saar)--Seasonal adjusted annual rate. - -------------------------------------------------------------------------------- Federal Fund Rate--interest rates charged by banks with excess reserves at a Federal Reserve district bank to banks needing overnight loans to meet reserve requirements. The federal fund rate is the most sensitive indicator of the market since it is set daily by the market. Bond Yields--rate of return on a bond, taking into account the total of annual interest payments, the purchase price, the redemption value and the amount of time remaining until maturity. *Source--International Strategy and Investment Group, Inc. INVESTMENT REVIEW - -------------------------------------------------------------------------------- TRADEMARK GOVERNMENT INCOME FUND Q Can you discuss recent developments in the bond market, particularly the series of interest rate increases which caused bond prices to fall? A Boosted by mortgage refinancings, the economy accelerated sharply during the fourth quarter of 1993, and yields surged upward in the first half of 1994 as bond market participants reacted to heightened inflation concerns and weakness in the dollar. However, reported inflation was low and continues at a very modest rate. We expect the pace of the economic advance to slow late this year or early in 1995. Q In this environment, how did the Trademark Government Income Fund (the "Fund") perform compared to its benchmark? A As shown in the illustration below, intermediate term yields have certainly not been immune to the huge increase in yields that has occurred all along the yield curve this year. Of course, when yields rise, prices of bonds decline, with the degree of weakness largely dependent upon the duration or maturity of the issue or portfolio. In this adverse climate for fixed income investments, the Trademark Government Income Fund with a weighted average maturity of 8.5 years reported a negative return of 4.78%* for the six-month period ended July 31, 1994. This compared with the comparable Merrill Lynch 7-10 year Treasury Index** which was down 4.15% in the same period. Graphic representation "C" omitted. See Appendix * Performance quoted represents past performance. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. ** This index is unmanaged. - -------------------------------------------------------------------------------- Q Did you adjust your strategy during the period? A No. At least part of the rise in intermediate term yields may be reversed late this year or in 1995. Q What are your expectations for the interest rate environment and how do they affect your investment strategy? A The chart listed below represents the actual performance of the stated indices and the Investment Group's forecast for the rest of 1994 and the first two quarters of 1995. All of the items listed below, taken together, assist the Investment Group in planning strategy for the period. INVESTMENT GROUP FORECAST
ACTUAL FORECAST -------------------------------------------------------------- --------------------------------------------------- 4TH 1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH 1ST 2ND QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER 1992 1993 1993 1993 1993 1994 1994 1994 1994 1995 1995 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Real Gross Domestic Product ("GDP") 5.7% 0.8% 1.8% 2.9% 6.3% 3.3% 3.8% 3.5% 3.0% 2.0% 2.0% - --------- GDP Deflator 2.3% 3.3% 2.3% 1.8% 1.3% 2.9% 2.9% 3.5% 3.5% 2.0% 2.5% - --------- 30 Yr. Bond Yields* 7.5% 7.1% 6.9% 6.0% 6.3% 6.6% 7.4% 7.6% 7.8% 7.3% 7.2% - --------- Federal Fund Rate 3.1% 3.0% 3.0% 3.0% 3.0% 3.2% 4.0% 4.7% 5.3% 5.3% 5.3% - --------- S&P 500 EPS (saar) $18 $21 $18 $24 $25 $24 $28 $30 $32 $33 $34 - ---------
Definitions: Real Gross Domestic Product (GDP)--primary measure of production of goods and services made with labor and property located in the U.S.A. over a particular period of time, usually one year. Deflator--statistical factor or device designed to adjust the difference between real or constant value and value affected by inflation. S&P 500 EPS--Average earnings per share of a stock based upon the S&P 500. (saar)--Seasonal adjusted annual rate. - -------------------------------------------------------------------------------- Federal Fund Rate--interest rates charged by banks with excess reserves at a Federal Reserve district bank to banks needing overnight loans to meet reserve requirements. The federal fund rate is the most sensitive indicator of the market since it is set daily by the market. Bond Yields--rate of return on a bond, taking into account the total of annual interest payments, the purchase price, the redemption value and the amount of time remaining until maturity. *Source--International Strategy and Investment Group, Inc. Q What is your outlook for the Fund, and what comments can you offer to our shareholders? A We continue to expect slow to moderate economic growth and relatively benign inflation in 1995. While intermediate term yields may be close to their highs, we do not currently anticipate more than a relatively modest decline. Given the steeply rising yield curve, a significant change in the structure of the portfolio is probably unlikely over coming weeks. TRADEMARK EQUITY FUND PORTFOLIO OF INVESTMENTS JULY 31, 1994 (UNAUDITED) - --------------------------------------------------------------------------------
SHARES VALUE - ---------- ------------------------------------------------------------------ ------------ LONG-TERM INVESTMENTS--96.1% - ---------------------------------------------------------------------------------- COMMON STOCKS--96.1% - ---------------------------------------------------------------------------------- COMMERCIAL SERVICES--5.6% ------------------------------------------------------------------ 71,167 Dunn & Bradstreet Corp. $ 4,118,790 ------------------------------------------------------------------ 121,579 SuperValu, Inc. 3,859,566 ------------------------------------------------------------------ ------------ Total 7,978,356 ------------------------------------------------------------------ ------------ CONSUMER DURABLES--9.0% ------------------------------------------------------------------ 135,399 Echlin, Inc. 4,298,918 ------------------------------------------------------------------ 137,000 Ford Motor Co. 4,349,750 ------------------------------------------------------------------ 154,772 Rubbermaid, Inc. 4,236,884 ------------------------------------------------------------------ ------------ Total 12,885,552 ------------------------------------------------------------------ ------------ CONSUMER NON-DURABLES--11.5% ------------------------------------------------------------------ 80,291 Anheuser Busch Co., Inc. 4,195,205 ------------------------------------------------------------------ 83,418 CPC International, Inc. 4,212,609 ------------------------------------------------------------------ 92,691 Hershey Foods Corp. 3,927,781 ------------------------------------------------------------------ 132,600 PepsiCo, Inc. 4,044,300 ------------------------------------------------------------------ ------------ Total 16,379,895 ------------------------------------------------------------------ ------------ CONSUMER SERVICES--8.6% ------------------------------------------------------------------ 13,200 CBS Inc. 4,118,400 ------------------------------------------------------------------ 95,813 Disney (Walt) Co. 4,072,053 ------------------------------------------------------------------ 81,100 Gannett, Inc. 4,095,550 ------------------------------------------------------------------ ------------ Total 12,286,003 ------------------------------------------------------------------ ------------ ELECTRONIC TECHNOLOGY--6.1% ------------------------------------------------------------------ 58,653 AMP, Inc. 4,384,312 ------------------------------------------------------------------ 126,900 Avnet, Inc. 4,251,150 ------------------------------------------------------------------ ------------ Total 8,635,462 ------------------------------------------------------------------ ------------
TRADEMARK EQUITY FUND - --------------------------------------------------------------------------------
SHARES VALUE - ---------- ------------------------------------------------------------------ ------------ LONG-TERM INVESTMENTS--CONTINUED - ---------------------------------------------------------------------------------- COMMON STOCKS--CONTINUED - ---------------------------------------------------------------------------------- ENERGY-MINERALS--5.7% ------------------------------------------------------------------ 95,236 Chevron Corp. $ 4,226,098 ------------------------------------------------------------------ 67,100 Schlumberger Ltd. 3,958,900 ------------------------------------------------------------------ ------------ Total 8,184,998 ------------------------------------------------------------------ ------------ FINANCE--11.7% ------------------------------------------------------------------ 45,927 American International Group, Inc. 4,328,620 ------------------------------------------------------------------ 48,095 Federal National Mortgage Association 4,172,241 ------------------------------------------------------------------ 86,700 First Union Corp. 3,923,175 ------------------------------------------------------------------ 100,176 St. Paul Companies, Inc. 4,282,524 ------------------------------------------------------------------ ------------ Total 16,706,560 ------------------------------------------------------------------ ------------ HEALTH TECHNOLOGY--5.8% ------------------------------------------------------------------ 138,688 Abbott Laboratories 3,900,600 ------------------------------------------------------------------ 94,078 Johnson & Johnson 4,421,666 ------------------------------------------------------------------ ------------ Total 8,322,266 ------------------------------------------------------------------ ------------ INDUSTRIAL SERVICES--2.9% ------------------------------------------------------------------ 134,195 Browning Ferris Industries, Inc. 4,160,045 ------------------------------------------------------------------ ------------ PROCESS INDUSTRIES--8.9% ------------------------------------------------------------------ 61,300 Dow Chemical Co. 4,237,363 ------------------------------------------------------------------ 76,100 Kimberly Clark Corp. 4,318,675 ------------------------------------------------------------------ 129,374 Nalco Chemical Co. 4,220,827 ------------------------------------------------------------------ ------------ Total 12,776,865 ------------------------------------------------------------------ ------------ PRODUCER MANUFACTURING--5.7% ------------------------------------------------------------------ 104,000 Illinois Tool Works, Inc. 4,173,000 ------------------------------------------------------------------ 150,023 Masco Corp. 3,938,103 ------------------------------------------------------------------ ------------ Total 8,111,103 ------------------------------------------------------------------ ------------
TRADEMARK EQUITY FUND - --------------------------------------------------------------------------------
SHARES VALUE - ---------- ------------------------------------------------------------------ ------------ LONG-TERM INVESTMENTS--CONTINUED - ---------------------------------------------------------------------------------- COMMON STOCKS--CONTINUED - ---------------------------------------------------------------------------------- RETAIL TRADE--5.8% ------------------------------------------------------------------ 121,579 * Toys 'R' Us, Inc. $ 4,179,278 ------------------------------------------------------------------ 164,270 Wal-Mart Stores, Inc. 4,106,750 ------------------------------------------------------------------ ------------ Total 8,286,028 ------------------------------------------------------------------ ------------ TRANSPORTATION--2.9% ------------------------------------------------------------------ 158,589 Ryder Systems, Inc. 4,143,137 ------------------------------------------------------------------ ------------ TELECOMMUNICATIONS--5.9% ------------------------------------------------------------------ 130,949 GTE Corp. 4,157,630 ------------------------------------------------------------------ 109,806 NYNEX Corp. 4,227,531 ------------------------------------------------------------------ ------------ Total 8,385,161 ------------------------------------------------------------------ ------------ TOTAL COMMON STOCKS (IDENTIFIED COST, $133,985,084) 137,241,431 ------------------------------------------------------------------ ------------ SHORT-TERM INVESTMENTS--3.6% - ---------------------------------------------------------------------------------- MUTUAL FUND SHARES--3.6% ------------------------------------------------------------------ 2,887,959 Dreyfus Treasury Cash Management Fund 2,887,959 ------------------------------------------------------------------ 2,272,385 Dreyfus Government Cash Management Fund 2,272,385 ------------------------------------------------------------------ ------------ TOTAL SHORT-TERM INVESTMENTS (AT NET ASSET VALUE) 5,160,344 ------------------------------------------------------------------ ------------ TOTAL INVESTMENTS (IDENTIFIED COST, $139,145,428) $142,401,775+ ------------------------------------------------------------------ ------------
* Non-income producing. + The cost of investments for federal tax purposes amounts to $139,145,428. The net unrealized appreciation of investments on a federal tax basis amounts to $3,256,347, which is comprised of $7,878,367 appreciation and $4,622,020 depreciation at July 31, 1994. Note: The categories of investments are shown as a percentage of net assets ($142,810,834) at July 31, 1994. (See Notes which are an integral part of the Financial Statements) TRADEMARK KENTUCKY MUNICIPAL BOND FUND PORTFOLIO OF INVESTMENTS JULY 31, 1994 (UNAUDITED) - --------------------------------------------------------------------------------
CREDIT RATING: PRINCIPAL MOODY'S AMOUNT OR S&P* VALUE - ---------- --------------------------------------------------------- --------- ----------- LONG-TERM MUNICIPAL SECURITIES--97.7% - ----------------------------------------------------------------------- ALABAMA--3.7% --------------------------------------------------------- $ 250,000 Birmingham, AL, 5.40% GO (Series B), 4/1/2007 AA $ 242,180 --------------------------------------------------------- 200,000 Birmingham, AL, 5.50% GO, 4/1/2008 AA 193,454 --------------------------------------------------------- 250,000 Birmingham, AL, 5.60% GO, 4/1/2009 AA 241,490 --------------------------------------------------------- 1,500,000 Hoover, AL, 5.50% Board of Education Capital Outlay Revenue (Series D)/(AMBAC Insured), 2/15/2008-2/15/2009 AAA 1,452,908 --------------------------------------------------------- ----------- Total 2,130,032 --------------------------------------------------------- ----------- ARIZONA--1.7% --------------------------------------------------------- 1,000,000 Phoenix, AZ, 4.40% GO, 7/1/99 AA 977,900 --------------------------------------------------------- ----------- FLORIDA--1.6% --------------------------------------------------------- 1,000,000 Florida State Turnpike Authority, 5.25% Turnpike Refunding Revenue (Series A)/(FGIC Insured), 7/1/2008-7/1/2009 AAA 945,280 --------------------------------------------------------- ----------- GEORGIA--1.5% --------------------------------------------------------- 400,000 Columbus, GA, 5.60% Water & Sewer Revenue Refunding, 5/1/2009 A+ 384,816 --------------------------------------------------------- 500,000 Georgia Municipal Electric Authority, 5.60% Power Revenue Refunding (Series C), 1/1/2008 AA- 493,480 --------------------------------------------------------- ----------- Total 878,296 --------------------------------------------------------- ----------- KENTUCKY--83.1% --------------------------------------------------------- 510,000 Clinton County, KY, School District Finance Corp., 6.10% School Building Revenue, 6/1/2012 A 507,205 --------------------------------------------------------- 585,000 Eastern Kentucky University Revenue, 5.375%, (AMBAC Insured), 5/1/2004 AAA 578,179 --------------------------------------------------------- 500,000 Eastern Kentucky University Revenue, 6.20%, (AMBAC Insured), 5/1/2004 AAA 533,605 ---------------------------------------------------------
TRADEMARK KENTUCKY MUNICIPAL BOND FUND - --------------------------------------------------------------------------------
CREDIT RATING: PRINCIPAL MOODY'S AMOUNT OR S&P* VALUE - ---------- --------------------------------------------------------- --------- ----------- LONG-TERM MUNICIPAL SECURITIES--CONTINUED - ----------------------------------------------------------------------- KENTUCKY--CONTINUED --------------------------------------------------------- $ 500,000 Fayette County, KY, School District Finance Corp., 6.00% School Building Refunding Revenue (Series A), 5/1/2003 A+ $ 521,750 --------------------------------------------------------- 560,000 Hardin County Kentucky Hospital Revenue Refunding, 4.50%, (Hardin Memorial Hospital Project)/(Series A)/ (AMBAC Insured), 10/1/2002 AAA 522,793 --------------------------------------------------------- 295,000 Hardin County Kentucky Hospital Revenue Refunding, 4.50%, (Hardin Memorial Hospital Project)/(Series B)/ (AMBAC Insured), 10/1/2002 AAA 275,401 --------------------------------------------------------- 510,000 Hardin County Kentucky Hospital Revenue Refunding, 4.75%, (Hardin Memorial Hospital Project/(Series A)/ (AMBAC Insured), 10/1/2004 AAA 474,810 --------------------------------------------------------- 250,000 Hardin County Kentucky Hospital Revenue Refunding, 4.75%, (Hardin Memorial Hospital Project)/(Series B)/ (AMBAC Insured), 10/1/2004 AAA 232,750 --------------------------------------------------------- 445,000 Hardin County Kentucky Hospital Revenue Refunding, 5.00%, (Hardin Memorial Hospital Project)/(Series B)/ (AMBAC Insured), 10/1/2006 AAA 419,376 --------------------------------------------------------- 900,000 Jefferson County, KY, 6.00%-6.375% Health Facility Revenue (Jewish Hospital Healthcare Services, Inc.)/ (AMBAC Insured), 5/1/2001-5/1/2008 AAA 945,431 --------------------------------------------------------- 2,155,000 Jefferson County, KY, School District Finance Corp., 4.70% School Building Revenue (Series A), 1/1/2000-1/1/2001 A+ 2,091,004 --------------------------------------------------------- 725,000 Jefferson County, KY, 6.10% Capital Projects Corp. Revenue Refunding (Series A), 8/15/2007 A1 745,401 --------------------------------------------------------- 500,000 Jefferson County, KY, 6.20% Hospital Revenue (Alliant Health System Project)/(MBIA Insured), 10/1/2004 AAA 530,945 --------------------------------------------------------- 900,000 Kenton County, KY, 6.10%-6.20% Airport Board Revenue (Cincinnati/Northern Kentucky International Airport)/(FSA Insured), 3/1/2004-3/1/2005 (Subject to AMT) AAA 939,852 ---------------------------------------------------------
TRADEMARK KENTUCKY MUNICIPAL BOND FUND - --------------------------------------------------------------------------------
CREDIT RATING: PRINCIPAL MOODY'S AMOUNT OR S&P* VALUE - ---------- --------------------------------------------------------- --------- ----------- LONG-TERM MUNICIPAL SECURITIES--CONTINUED - ----------------------------------------------------------------------- KENTUCKY--CONTINUED --------------------------------------------------------- $ 500,000 Kenton County, KY, 5.75% Airport Board Revenue (Series 1993B)/(FSA Insured), 3/1/2007 (Subject to AMT) AAA $ 502,725 --------------------------------------------------------- 500,000 Kenton County, KY, 5.75% Airport Board Revenue (Cincinnati/Northern Kentucky International Airport) (Series 1993B)/(FSA Insured), 3/1/2008 (Subject to AMT) AAA 497,640 --------------------------------------------------------- 1,575,000 Kenton County, KY, School District Finance Corp., 4.50%-5.25% School Building Refunding Revenue, 7/1/99-7/1/2008 A+ 1,503,988 --------------------------------------------------------- 500,000 Kentucky Higher Education Student Loan Corp., 6.50%, (Series C)/(Student Loan Revenue Insured), 6/1/2002 A+ 520,785 --------------------------------------------------------- 500,000 Kentucky Higher Education Student Loan Corp., 4.70%, (Series A)/(Student Loan Revenue Refunding), 6/1/2000 AA- 486,290 --------------------------------------------------------- 430,000 Kentucky Higher Education Student Loan Corp., 5.30%, (Series B)/(Student Loan Revenue Refunding)/(Subject to AMT), 6/1/2005 AA- 409,515 --------------------------------------------------------- 1,500,000 Kentucky Housing Corp., 5.10%-5.60% Housing Revenue (Series A)/(FHA/VA Mortgages Insured), 1/1/2002-1/1/2007 AAA 1,486,575 --------------------------------------------------------- 2,625,000 Kentucky Housing Corp., 5.05%-6.20% Housing Revenue (Series B)/(FHA/VA Mortgages Insured), 7/1/2000-7/1/2014 AAA 2,503,522 --------------------------------------------------------- 400,000 Kentucky Infrastructure Authority Revenue, 6.00% Government Agencies Program (Series D), 8/1/2011 A 400,592 --------------------------------------------------------- 250,000 Kentucky Infrastructure Authority Revenue, 6.10% Revolving Funding Program, 6/1/2002 A 252,140 --------------------------------------------------------- 500,000 Kentucky Infrastructure Authority Revenue, 6.50% Revolving Funding Program (Series E), 6/1/2005 A 507,320 --------------------------------------------------------- 590,000 Kentucky Infrastructure Authority Revenue, 3.25%-5.60% Wastewater Revolving Funding Program, 6/1/95-6/1/2013 A 568,287 ---------------------------------------------------------
TRADEMARK KENTUCKY MUNICIPAL BOND FUND - --------------------------------------------------------------------------------
CREDIT RATING: PRINCIPAL MOODY'S AMOUNT OR S&P* VALUE - ---------- --------------------------------------------------------- --------- ----------- LONG-TERM MUNICIPAL SECURITIES--CONTINUED - ----------------------------------------------------------------------- KENTUCKY--CONTINUED --------------------------------------------------------- $ 405,000 Kentucky Infrastructure Authority Revenue, 4.50%-4.60%, (Series F)/(Refunding Government Agencies Program, 2/1/2001-2/1/2002 A $ 382,697 --------------------------------------------------------- 1,000,000 Kentucky Interlocal School Transportation Association, 6.00% Equipment Lease Revenue, 3/1/2001 A 1,048,350 --------------------------------------------------------- 700,000 Kentucky State Property & Building Commission Revenue, 6.00%, Project No. 50, 2/1/2010 A 735,294 --------------------------------------------------------- 1,000,000 Kentucky State Property & Building Commission Revenue, 6.00%, Project No. 51, 8/1/2010 A 1,053,660 --------------------------------------------------------- 500,000 Kentucky State Property & Building Commission Revenue Refunding, 6.625%, Project No. 53, 10/1/2007 A 545,420 --------------------------------------------------------- 250,000 Kentucky State Property & Building Commission Revenue Refunding, 4.00%, Project No. 54, 9/1/95 A 250,150 --------------------------------------------------------- 1,000,000 Kentucky State Property & Building Commission Revenue Refunding, 4.90%, Project No. 55, 9/1/2006 A 922,510 --------------------------------------------------------- 750,000 Kentucky State Turnpike Authority, 5.70% Economic Development Refunding Revenue (Revitalization Project), 1/1/2003 A 769,620 --------------------------------------------------------- 1,500,000 Kentucky State Turnpike Authority, 5.50% Economic Development Refunding Revenue (Revitalization Project)/ (AMBAC Insured), 7/1/2008-7/1/2009 AAA 1,461,285 --------------------------------------------------------- 500,000 Kentucky State Turnpike Authority, 6.625% Resources Recovery Road Revenue, (Series A), 7/1/2008 AAA 538,505 --------------------------------------------------------- 250,000 Kentucky State Turnpike Authority, 5.80% Toll Road Revenue, 7/1/99 Aaa 256,972 --------------------------------------------------------- 1,100,000 Kentucky State Turnpike Authority, 5.50% Toll Road Revenue, (Series A), 7/1/2007 A 1,097,932 --------------------------------------------------------- 500,000 Kentucky State University Revenue, 6.25%, Consolidated Educational Buildings, (Series G)/(MBIA Insured), 5/1/2002 AAA 536,070 ---------------------------------------------------------
TRADEMARK KENTUCKY MUNICIPAL BOND FUND - --------------------------------------------------------------------------------
CREDIT RATING: PRINCIPAL MOODY'S AMOUNT OR S&P* VALUE - ---------- --------------------------------------------------------- --------- ----------- LONG-TERM MUNICIPAL SECURITIES--CONTINUED - ----------------------------------------------------------------------- KENTUCKY--CONTINUED --------------------------------------------------------- $ 500,000 Lexington-Fayette Urban County Government, KY, 6.35% Sewer System Revenue (MBIA Insured), 7/1/2007 AAA $ 527,190 --------------------------------------------------------- 3,245,000 Louisville & Jefferson County, KY, 4.80%-5.30% Metropolitan Sewer District Revenue Refunding (MBIA Insured), 5/15/98-5/15/2010 AAA 3,043,479 --------------------------------------------------------- 200,000 Louisville, KY, Public Property Corp., 6.40% First Mortgage Refunding Revenue, 12/1/2007 A 209,372 --------------------------------------------------------- 310,000 Louisville, KY, 6.375% Water Revenue (U.S. Government Securities Insured), 11/1/97 AAA 327,294 --------------------------------------------------------- 1,500,000 Louisville, KY, 5.40%-5.75% Water Works Board Water System Refunding Revenue (Louisville Water Co.), 11/15/2004-11/15/2009 AA 1,498,660 --------------------------------------------------------- 200,000 Morehead State University, KY, 6.30% University Revenue (AMBAC Insured), 11/1/2008 AAA 207,642 --------------------------------------------------------- 1,000,000 Muhlenberg County, KY, Schools District Finance Corp., 5.85% School Building Revenue Refunding, 8/1/2009-8/1/2010 A 987,445 --------------------------------------------------------- 750,000 Murray State University, KY, 5.40%-5.60% University Revenue, 5/1/2005-5/1/2007 A 731,940 --------------------------------------------------------- 530,000 Northern Kentucky, 6.10% University Revenue (AMBAC Insured), 5/1/2006 AAA 555,334 --------------------------------------------------------- 1,000,000 Northern Kentucky University Revenue, 4.60%-4.70%, 5/1/2004-5/1/2005 A 909,590 --------------------------------------------------------- 1,000,000 Owensboro, KY, 5.30% Electric, Light & Power Revenue (Series A)/(AMBAC Insured), 1/1/2004 (Subject to AMT) AAA 985,390 --------------------------------------------------------- 600,000 Perry County, KY, School District Finance Corp., 6.25% School Building Revenue, 7/1/2009 A 622,992 --------------------------------------------------------- 250,000 Richmond, KY, 6.50% Water, Gas & Sewer Revenue (MBIA Insured), 6/1/99 AAA 267,135 ---------------------------------------------------------
TRADEMARK KENTUCKY MUNICIPAL BOND FUND - --------------------------------------------------------------------------------
CREDIT RATING: PRINCIPAL MOODY'S AMOUNT OR S&P* VALUE - ---------- --------------------------------------------------------- --------- ----------- LONG-TERM MUNICIPAL SECURITIES--CONTINUED - ----------------------------------------------------------------------- KENTUCKY--CONTINUED --------------------------------------------------------- $ 600,000 Shelby County, KY, School District Finance Corp., 6.25%-6.50% School Building Revenue, 9/1/2003-9/1/2005 A $ 639,850 --------------------------------------------------------- 1,000,000 University of Kentucky, 5.75%-6.25% University Revenue (Community College)/(Series F), 5/1/97-5/1/2007 AA- 1,045,630 --------------------------------------------------------- 1,150,000 University of Kentucky, 5.10% University Revenue (Community College)/(Series J), 5/1/2005 AA- 1,103,011 --------------------------------------------------------- 1,000,000 University of Kentucky, 4.15%-4.20% University Revenue Refunding (Educational Buildings)/(Third Series), 5/1/2004-5/1/2005 AA- 851,945 --------------------------------------------------------- 640,000 University of Kentucky, 5.25% University Revenue Refunding (Educational Buildings)/(Series K), 5/1/2008 AA- 602,553 --------------------------------------------------------- 1,000,000 University of Louisville, KY, 5.875% Revenue Refunding (Consolidated Educational Buildings)/(Series H), 5/1/2008-5/1/2009 AA- 1,019,685 --------------------------------------------------------- 1,500,000 University of Louisville, KY, 5.40% Revenue Refunding (Consolidated Educational Buildings)/(Series I), 5/1/2007-5/1/2009 AA-/AAA 1,434,970 --------------------------------------------------------- 985,000 Western Kentucky, 5.00% University Revenues, (Series L), 5/1/2009 A 902,911 --------------------------------------------------------- 310,000 Western Kentucky, 5.85% University Revenues, 5/1/96 A 318,704 --------------------------------------------------------- 950,000 Winchester Kentucky, 5.30% Utilities Revenue Refunding, 7/1/2009 A 876,176 --------------------------------------------------------- ----------- Total 48,225,244 --------------------------------------------------------- ----------- MISSISSIPPI--1.0% --------------------------------------------------------- 600,000 Mississippi Hospital Equipment & Facility Authority, 5.50% Refunding Revenue & Improvement (North Mississippi Health)/(AMBAC Insured), 5/15/2009 AAA 577,044 --------------------------------------------------------- -----------
TRADEMARK KENTUCKY MUNICIPAL BOND FUND - --------------------------------------------------------------------------------
CREDIT RATING: PRINCIPAL MOODY'S AMOUNT OR S&P* VALUE - ---------- --------------------------------------------------------- --------- ----------- LONG-TERM MUNICIPAL SECURITIES--CONTINUED - ----------------------------------------------------------------------- TENNESSEE--3.4% --------------------------------------------------------- $ 960,000 Memphis-Shelby County, TN, 5.50%-5.60% Airport Authority Refunding Revenue (MBIA Insured), 9/1/2007-9/1/2010 AAA $ 936,565 --------------------------------------------------------- 1,000,000 Memphis, TN, 5.00% GO, 10/1/98 AA 1,015,340 --------------------------------------------------------- ----------- Total 1,951,905 --------------------------------------------------------- ----------- TEXAS--0.9% --------------------------------------------------------- 520,000 Plano, TX, 5.40% Waterworks & Sewer System Refunding Revenue (AMBAC Insured), 5/1/2007 AAA 504,109 --------------------------------------------------------- ----------- WISCONSIN--0.8% --------------------------------------------------------- 500,000 Wisconsin State Health & Educational Facility Authority Revenue, 5.60% (Lutheran Benevolent)/(FSA Insured), 2/15/2009 AAA 484,050 --------------------------------------------------------- ----------- TOTAL LONG-TERM MUNICIPAL SECURITIES (IDENTIFIED COST, $58,220,548) 56,673,860 --------------------------------------------------------- -----------
TRADEMARK KENTUCKY MUNICIPAL BOND FUND - --------------------------------------------------------------------------------
CREDIT RATING: MOODY'S SHARES OR S&P* VALUE - ---------- --------------------------------------------------------- --------- ----------- MUTUAL FUND SHARES--1.0% - ----------------------------------------------------------------------- 564,497 Dreyfus Government Cash Management Fund (AT NET ASSET VALUE) (NOTE 2A) AAA $ 564,497 --------------------------------------------------------- ----------- TOTAL INVESTMENTS (IDENTIFIED COST, $58,785,045) $57,238,357+ --------------------------------------------------------- -----------
* Please refer to the Appendix of the Statement of Additional Information for an explanation of the credit ratings. + The cost of investments for federal tax purposes amounts to $58,785,045. The net unrealized depreciation of investments on a federal tax basis amounts to $1,546,688, which is comprised of $112,611 appreciation and $1,659,299 depreciation at July 31, 1994. Note: The categories of investments are shown as a percentage of net assets ($58,025,382) at July 31, 1994. The following abbreviations are used in this portfolio: AMBAC -- American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax FGIC -- Financial Guaranty Insurance Company FHA -- Federal Housing Administration FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Investors Assurance VA -- Veterans Administration
(See Notes which are an integral part of the Financial Statements) TRADEMARK SHORT-INTERMEDIATE GOVERNMENT FUND PORTFOLIO OF INVESTMENTS JULY 31, 1994 (UNAUDITED) - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------- -------------------------------------------------------------------- ----------- SHORT-INTERMEDIATE TERM INVESTMENTS--96.4% - ---------------------------------------------------------------------------------- COLLATERALIZED MORTGAGE SECURITIES--2.0% - ---------------------------------------------------------------------------------- $ 164,428 CMO Trust, 9.00%, 7/1/2014 $ 167,904 -------------------------------------------------------------------- 744,543 Morgan Stanley Mortgage Trust CMO, 8.95%, Class 3, 3/1/2016 752,659 -------------------------------------------------------------------- ----------- TOTAL COLLATERALIZED MORTGAGE SECURITIES (IDENTIFIED COST, $975,677) 920,563 -------------------------------------------------------------------- ----------- CORPORATE BONDS--FINANCE--1.1% - ---------------------------------------------------------------------------------- 500,000 Associates Corp. of North America, 8.375%, 6/1/96 -------------------------------------------------------------------- (IDENTIFIED COST, $544,325) 513,205 -------------------------------------------------------------------- ----------- GOVERNMENT OBLIGATIONS--93.3% - ---------------------------------------------------------------------------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--33.1% -------------------------------------------------------------------- 46,426 11.00%, 6/15/99-3/15/2000 49,908 -------------------------------------------------------------------- 52,248 10.50%, 4/15/98-9/15/98 55,742 -------------------------------------------------------------------- 216,763 10.00%, 12/15/2000-1/15/2001 230,716 -------------------------------------------------------------------- 2,161,970 9.00%, 6/15/2001-12/15/2005 2,270,873 -------------------------------------------------------------------- 1,163,107 8.50%, 6/15/2001-4/15/2006 1,206,723 -------------------------------------------------------------------- 579,848 8.00%, 3/15/2002-5/15/2002 592,349 -------------------------------------------------------------------- 355,747 7.50%, 5/15/2007 355,413 -------------------------------------------------------------------- 3,964,611 6.50%, 11/15/2007-5/15/2008 3,776,292 -------------------------------------------------------------------- 7,239,001 6.00%, 7/15/2008-3/15/2009 6,716,417 -------------------------------------------------------------------- ----------- Total 15,254,433 -------------------------------------------------------------------- ----------- U.S. TREASURY NOTES--60.2% -------------------------------------------------------------------- 2,500,000 9.375%, 4/15/96 2,645,550 -------------------------------------------------------------------- 4,900,000 8.375%, 4/15/95-6/1/96 5,006,575 -------------------------------------------------------------------- 1,000,000 8.00%, 10/15/96 1,041,560 -------------------------------------------------------------------- 1,700,000 7.125%, 10/15/98 1,733,949 -------------------------------------------------------------------- 1,000,000 6.75%, 2/28/97 1,013,680 -------------------------------------------------------------------- 4,500,000 6.00%, 10/15/99 4,356,630 --------------------------------------------------------------------
TRADEMARK SHORT-INTERMEDIATE GOVERNMENT FUND - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT OR SHARES VALUE - ---------- -------------------------------------------------------------------- ----------- SHORT-INTERMEDIATE TERM INVESTMENTS--CONTINUED - ---------------------------------------------------------------------------------- U.S. TREASURY NOTES--CONTINUED -------------------------------------------------------------------- $9,000,000 5.50%, 9/30/97-4/15/2000 $ 8,612,800 -------------------------------------------------------------------- 3,500,000 5.125%, 3/31/98 3,346,595 -------------------------------------------------------------------- ----------- Total 27,757,339 -------------------------------------------------------------------- ----------- TOTAL GOVERNMENT OBLIGATIONS (IDENTIFIED COST, $45,641,176) 43,011,772 -------------------------------------------------------------------- ----------- TOTAL SHORT-INTERMEDIATE TERM INVESTMENTS (IDENTIFIED COST, $47,161,178) 44,445,540 -------------------------------------------------------------------- ----------- SHORT-TERM INVESTMENTS--2.2% - ---------------------------------------------------------------------------------- MUTUAL FUND SHARES--0.1% -------------------------------------------------------------------- 8,794 Dreyfus Government Cash Management Fund 8,794 -------------------------------------------------------------------- 11,536 Dreyfus Treasury Cash Management Fund 11,536 -------------------------------------------------------------------- ----------- Total Mutual Fund Shares (at net asset value) 20,330 -------------------------------------------------------------------- ----------- U.S. TREASURY BILL--2.1% -------------------------------------------------------------------- 1,000,000 12/22/94 (IDENTIFIED COST, $981,768) 981,430 -------------------------------------------------------------------- ----------- TOTAL SHORT-TERM INVESTMENTS (NOTE 2A) 1,001,760 -------------------------------------------------------------------- ----------- TOTAL INVESTMENTS (IDENTIFIED COST, $48,163,276) $45,447,300++ -------------------------------------------------------------------- -----------
+ The cost of investments for federal tax purposes amounts to $48,163,276 at July 31, 1994. The net unrealized depreciation of investments on a federal tax basis amounts to $2,715,976, all of which is comprised of depreciation at July 31, 1994. Note: The categories of investments are shown as a percentage of net assets ($46,126,126) at July 31, 1994. (See Notes which are an integral part of the Financial Statements) TRADEMARK GOVERNMENT INCOME FUND PORTFOLIO OF INVESTMENTS JULY 31, 1994 (UNAUDITED) - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------- -------------------------------------------------------------------- ----------- LONG-TERM INVESTMENTS--96.9% - ---------------------------------------------------------------------------------- CORPORATE BONDS--18.5% - ---------------------------------------------------------------------------------- CHEMICALS--0.9% -------------------------------------------------------------------- $1,000,000 Monsanto Co., 6.00%, 7/1/2000 $ 936,170 -------------------------------------------------------------------- ----------- CONSUMER NON-DURABLE--2.9% -------------------------------------------------------------------- 500,000 Anheuser Busch, Inc., 6.90%, 10/1/2002 478,505 -------------------------------------------------------------------- 350,000 Becton Dickinson & Co., 8.375%, 6/1/96 359,814 -------------------------------------------------------------------- 1,000,000 Pepsico, Inc., 6.25%, 9/1/99 963,470 -------------------------------------------------------------------- 1,150,000 Warner Lambert Co., 6.625%, 9/15/2002 1,090,395 -------------------------------------------------------------------- ----------- Total 2,892,184 -------------------------------------------------------------------- ----------- FINANCE--2.0% -------------------------------------------------------------------- 500,000 Associates Corp. of North America, 8.375%, 1/15/98 515,400 -------------------------------------------------------------------- 200,000 Beneficial Corp., 12.75%, 8/15/94 200,442 -------------------------------------------------------------------- 920,000 NBD Bancorp, Inc., 7.25%, 8/15/2004 888,600 -------------------------------------------------------------------- 400,000 Transamerica Finance Corp., 7.875%, 2/15/97 411,912 -------------------------------------------------------------------- ----------- Total 2,016,354 -------------------------------------------------------------------- ----------- FINANCE--AUTOMOTIVE--0.9% -------------------------------------------------------------------- 1,000,000 Ford Motor Credit Co., 6.625%, 6/30/2003 921,480 -------------------------------------------------------------------- ----------- FINANCE--CONSUMER--0.9% -------------------------------------------------------------------- 1,000,000 American General Finance Corp., 6.375%, 3/1/2003 922,160 -------------------------------------------------------------------- ----------- INFORMATION PROCESSING--0.5% -------------------------------------------------------------------- 500,000 International Business Machines, 7.25%, 11/1/2002 487,730 -------------------------------------------------------------------- ----------- PRINTING & PUBLISHING--0.6% -------------------------------------------------------------------- 600,000 Eastman Kodak Co., 9.125%, 3/1/98 613,074 -------------------------------------------------------------------- ----------- TELECOMMUNICATIONS--1.3% -------------------------------------------------------------------- 500,000 Northwestern Bell Telephone Co., 4.875%, 6/1/98 466,355 -------------------------------------------------------------------- 1,000,000 Southern Bell Telephone & Telegraph Co., 4.375%, 4/1/2001 852,700 -------------------------------------------------------------------- ----------- Total 1,319,055 -------------------------------------------------------------------- -----------
TRADEMARK GOVERNMENT INCOME FUND - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------- -------------------------------------------------------------------- ----------- LONG-TERM INVESTMENTS--CONTINUED - ---------------------------------------------------------------------------------- CORPORATE BONDS--CONTINUED - ---------------------------------------------------------------------------------- TRANSPORTATION--0.7% -------------------------------------------------------------------- $ 350,000 CSX Corp., 8.40%, 8/1/96 $ 357,347 -------------------------------------------------------------------- 300,000 Southern RY Corp., 8.25%, 6/1/96 307,731 -------------------------------------------------------------------- ----------- Total 665,078 -------------------------------------------------------------------- ----------- UTILITIES--7.8% -------------------------------------------------------------------- 550,000 Carolina Power & Light Co., 6.375%, 10/1/97 540,667 -------------------------------------------------------------------- 1,000,000 Consolidated Edison Co., 7.625%, 3/1/2004 995,240 -------------------------------------------------------------------- 1,000,000 Duke Power Co., 5.875%, 6/1/2001 929,840 -------------------------------------------------------------------- 1,000,000 Florida Power & Light Co., 5.375%, 4/1/2000 912,870 -------------------------------------------------------------------- 1,000,000 Pacific Gas & Electric Co., 6.25%, 3/1/2004 905,120 -------------------------------------------------------------------- 1,000,000 Public Service Electric & Gas Co., 6.50%, 5/1/2004 925,460 -------------------------------------------------------------------- 1,000,000 Southern California Edison Co., 5.625%, 10/1/2002 883,670 -------------------------------------------------------------------- 1,000,000 Virginia Electric & Power Co., 6.00%, 8/1/2001 920,450 -------------------------------------------------------------------- 1,000,000 West Penn Power Co., 6.375%, 6/1/2003 923,940 -------------------------------------------------------------------- ----------- Total 7,937,257 -------------------------------------------------------------------- ----------- TOTAL CORPORATE BONDS (IDENTIFIED COST, $20,075,720) 18,710,542 -------------------------------------------------------------------- ----------- GOVERNMENT OBLIGATIONS--78.4% - ---------------------------------------------------------------------------------- FEDERAL HOME LOAN BANK--0.5% -------------------------------------------------------------------- 550,000 8.25%, 6/25/96 570,389 -------------------------------------------------------------------- ----------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--32.3% -------------------------------------------------------------------- 26,566 12.00%, 8/15/2013-4/15/2015 30,119 -------------------------------------------------------------------- 86,664 11.00%, 11/15/2009-6/15/2015 96,359 -------------------------------------------------------------------- 21,646 10.50%, 4/15/98 23,095 -------------------------------------------------------------------- 104,445 10.00%, 9/15/2000-1/15/2001 111,168 -------------------------------------------------------------------- 1,651,655 9.50%, 9/15/2001-12/15/2020 1,755,280 -------------------------------------------------------------------- 4,173,542 9.00%, 9/15/2001-6/15/2021 4,373,772 --------------------------------------------------------------------
TRADEMARK GOVERNMENT INCOME FUND - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------- -------------------------------------------------------------------- ----------- LONG-TERM INVESTMENTS--CONTINUED - ---------------------------------------------------------------------------------- GOVERNMENT OBLIGATIONS--CONTINUED - ---------------------------------------------------------------------------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--CONTINUED -------------------------------------------------------------------- $ 467,675 8.50%, 6/15/2001-12/15/2001 $ 485,215 -------------------------------------------------------------------- 1,337,802 8.00%, 3/15/2002-7/15/2022 1,346,025 -------------------------------------------------------------------- 2,501,075 7.50%, 7/15/2007-6/15/2024 2,443,921 -------------------------------------------------------------------- 11,084,023 7.00%, 10/15/2022-7/15/2023 10,415,437 -------------------------------------------------------------------- 11,765,036 6.50%, 5/15/2023-2/15/2024 10,662,270 -------------------------------------------------------------------- 971,527 6.00%, 10/15/2023 847,046 -------------------------------------------------------------------- ----------- Total 32,589,707 -------------------------------------------------------------------- ----------- INTERNATIONAL BANK FOR RECONSTRUCTION & DEVELOPMENT--0.4% -------------------------------------------------------------------- 400,000 7.65%, 2/28/97 411,060 -------------------------------------------------------------------- ----------- U.S. TREASURY BONDS--6.3% -------------------------------------------------------------------- 6,200,000 7.125%-8.875%, 8/15/2017-2/15/2023 6,327,766 -------------------------------------------------------------------- ----------- U.S. TREASURY NOTES--38.9% -------------------------------------------------------------------- 5,000,000 8.875%, 11/15/98-2/15/99 5,423,352 -------------------------------------------------------------------- 1,000,000 8.625%, 8/15/97 1,064,170 -------------------------------------------------------------------- 4,300,000 8.50%, 2/15/2000-11/15/2000 4,650,229 -------------------------------------------------------------------- 2,000,000 7.875%, 11/15/99 2,099,600 -------------------------------------------------------------------- 10,000,000 7.50%, 11/15/2001-5/15/2002 10,309,850 -------------------------------------------------------------------- 4,000,000 6.375%, 7/15/99-8/15/2002 3,920,180 -------------------------------------------------------------------- 5,600,000 6.25%, 2/15/2003 5,311,936 -------------------------------------------------------------------- 5,000,000 5.875%, 2/15/2004 4,580,300 -------------------------------------------------------------------- 2,000,000 5.50%, 4/15/2000 1,883,600 -------------------------------------------------------------------- ----------- Total 39,243,217 -------------------------------------------------------------------- ----------- TOTAL GOVERNMENT OBLIGATIONS (IDENTIFIED COST, $84,383,869) 79,142,139 -------------------------------------------------------------------- ----------- TOTAL LONG-TERM INVESTMENTS (IDENTIFIED COST, $104,459,589) 97,852,681 -------------------------------------------------------------------- -----------
TRADEMARK GOVERNMENT INCOME FUND - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE - ---------- -------------------------------------------------------------------- ----------- SHORT-TERM INVESTMENTS--1.4% - ---------------------------------------------------------------------------------- MUTUAL FUND SHARES--0.4% -------------------------------------------------------------------- 336,087 Dreyfus Government Cash Management Fund $ 336,087 -------------------------------------------------------------------- 132,174 Dreyfus Treasury Cash Management Fund 132,174 -------------------------------------------------------------------- ----------- Total Mutual Fund Shares (at net asset value) 468,261 -------------------------------------------------------------------- ----------- U.S. TREASURY BILL--1.0% -------------------------------------------------------------------- $1,000,000 1/12/95 (IDENTIFIED COST, $984,831) 976,450 -------------------------------------------------------------------- ----------- TOTAL SHORT-TERM INVESTMENTS (NOTE 2A) 1,444,711 -------------------------------------------------------------------- ----------- TOTAL INVESTMENTS (IDENTIFIED COST, $105,912,681) $99,297,392+ -------------------------------------------------------------------- -----------
+ The cost of investments for federal tax purposes amounts to $105,912,681. The net unrealized depreciation on a federal tax basis amounts to $6,615,289, which is comprised of $2,554 appreciation and $6,617,843 depreciation at July 31, 1994. Note: The categories of investments are shown as a percentage of net assets ($100,952,081) at July 31, 1994. (See Notes which are an integral part of the Financial Statements) TRADEMARK FUNDS STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 1994 (UNAUDITED) - -------------------------------------------------------------------------------- (All numbers in thousands except net asset values)
KENTUCKY SHORT-INTERMEDIATE EQUITY MUNICIPAL GOVERNMENT GOVERNMENT FUND BOND FUND FUND INCOME FUND - ------------------------------------------------------------------------------------------------------- ASSETS: Investments in securities, at value (Note 2A) $142,402 $57,238 $ 45,447 $ 99,297 Dividends and interest receivable 236 764 685 1,722 Receivable for Fund shares sold 224 24 11 -- Deferred expenses (Note 2F) 38 24 21 32 - ------------------------------------------------------------------------------------------------------- Total assets 142,900 58,050 46,164 101,051 - ------------------------------------------------------------------------------------------------------- LIABILITIES: Payable for Fund shares redeemed 25 -- 3 32 Payable to Adviser (Note 4) -- 13 10 24 Accrued expenses 64 12 25 43 - ------------------------------------------------------------------------------------------------------- Total liabilities 89 25 38 99 - ------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Paid-in capital 137,562 59,459 49,415 108,229 Net unrealized appreciation (depreciation) of investments 3,257 (1,547) (2,716) (6,615) Accumulated undistributed net realized gain (loss) on investments 1,988 (7) (591) (730) Undistributed net investment income 4 120 18 68 - ------------------------------------------------------------------------------------------------------- Total Net Assets $142,811 $58,025 $ 46,126 $ 100,952 - ------------------------------------------------------------------------------------------------------- SHARES OUTSTANDING: 13,395 5,880 4,914 10,799 - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE, Offering Price, and Redemption Proceeds Per Share: (net assets/shares outstanding) $10.66 $9.87 $9.39 $9.35 - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- Investments, at identified and tax cost $139,145 $58,785 $ 48,163 $ 105,912 - ------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------
(See Notes which are an integral part of the Financial Statements) TRADEMARK FUNDS STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED) - -------------------------------------------------------------------------------- (All numbers in thousands)
KENTUCKY SHORT-INTERMEDIATE EQUITY MUNICIPAL GOVERNMENT GOVERNMENT FUND BOND FUND FUND INCOME FUND - ----------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest income $ 103 $ 1,586 $ 1,644 $ 3,466 Dividend income 1,712 -- -- -- - ----------------------------------------------------------------------------------------------------------- Total income (Note 2C) 1,815 1,586 1,644 3,466 - ----------------------------------------------------------------------------------------------------------- EXPENSES-- Investment advisory fee* 570 151 147 297 Trustees' fees 1 1 -- 3 Administrative personnel and services fee* 96 43 35 71 Custodian fees 10 8 9 8 Portfolio accounting, transfer and dividend disbursing agent fees and expenses* 40 40 18 47 Fund share registration costs 13 7 34 12 Auditing fees 5 5 5 6 Legal fees 3 -- 1 -- Printing and postage 5 3 4 5 Insurance premiums 3 2 3 4 Miscellaneous 4 2 1 3 - ----------------------------------------------------------------------------------------------------------- Total expenses 750 262 257 456 Waiver of investment advisory fee* 170 -- 24 34 - ----------------------------------------------------------------------------------------------------------- Net expenses 580 262 233 422 - ----------------------------------------------------------------------------------------------------------- Net investment income 1,235 1,324 1,411 3,044 - ----------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments (identified cost basis) 2,079 (6) (251) (229) Net change in unrealized appreciation (depreciation) of investments (4,485) (3,741) (2,516) (7,820) - ----------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments (2,406) (3,747) (2,767) (8,049) - ----------------------------------------------------------------------------------------------------------- Change in net assets resulting from operations ($1,171) ($2,423) ($ 1,356) ($5,005) - ----------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------
* See Note 4. (See Notes which are an integral part of the Financial Statements) TRADEMARK FUNDS STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- (All numbers in thousands)
KENTUCKY MUNICIPAL EQUITY FUND BOND FUND --------------------- -------------------- YEAR ENDED YEAR ENDED JANUARY 31, JANUARY 31, 1995* 1994** 1995* 1994*** - ------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS: OPERATIONS-- Net investment income $ 1,235 $ 1,652 $ 1,324 $ 1,806 Net realized gain (loss) on investments 2,079 4,702 (6) (1) Net change in unrealized appreciation (depreciation) of investments (4,485) 7,740 (3,741) 2,194 - ------------------------------------------------------------------------------------------------------------ Change in net assets resulting from operations (1,171) 14,094 (2,423) 3,999 - ------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2C)-- Dividends to shareholders from net investment income (1,305) (1,578) (1,295) (1,715) Dividends to shareholders from net realized gain on investment transactions (975) (3,818) -- -- - ------------------------------------------------------------------------------------------------------------ Change in net assets from distributions to shareholders (2,280) (5,396) (1,295) (1,715) - ------------------------------------------------------------------------------------------------------------ FUND SHARE (PRINCIPAL) TRANSACTIONS (NOTE 3)-- Proceeds from sale of shares 20,010 131,948 8,087 71,308 Net asset value of shares issued to shareholders in payment of dividends declared 1,842 5,037 189 152 Cost of shares redeemed (8,355) (12,918) (11,196) (9,081) - ------------------------------------------------------------------------------------------------------------ Change in net assets from Fund share transactions 13,497 124,067 (2,920) 62,379 - ------------------------------------------------------------------------------------------------------------ Change in net assets 10,046 132,765 (6,638) 64,663 NET ASSETS: Beginning of period 132,765 -- 64,663 -- - ------------------------------------------------------------------------------------------------------------ End of period $142,811 $132,765 $ 58,025 $64,663 - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ Net gain (loss) as computed for federal tax purposes (Note 2D) $2,079 $4,794 ($6) ($1) - ------------------------------------------------------------------------------------------------------------ Undistributed net investment income $4 $74 $120 $91 - ------------------------------------------------------------------------------------------------------------
* Six months ended July 31, 1994 (unaudited). ** For the period from February 19, 1993 (date of initial public investment) to January 31, 1994. *** For the period from March 12, 1993 (date of initial public investment) to January 31, 1994. (See Notes which are an integral part of the Financial Statements) TRADEMARK FUNDS STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- (All numbers in thousands)
SHORT-INTERMEDIATE GOVERNMENT GOVERNMENT FUND INCOME FUND -------------------- -------------------- YEAR ENDED YEAR ENDED JANUARY 31, JANUARY 31, 1995* 1994** 1995* 1994*** - ----------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: OPERATIONS-- Net investment income $ 1,411 $ 2,518 $ 3,044 $ 4,604 Net realized gain (loss) on investments (251) (340) (229) (501) Net change in unrealized appreciation (depreciation) of investments (2,516) (200) (7,820) 1,205 - ----------------------------------------------------------------------------------------------------------- Change in net assets resulting from operations (1,356) 1,978 (5,005) 5,308 - ----------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2C)-- Dividends to shareholders from net investment income (1,406) (2,505) (3,008) (4,572) - ----------------------------------------------------------------------------------------------------------- FUND SHARE (PRINCIPAL) TRANSACTIONS (NOTE 3)-- Proceeds from sale of shares 3,203 62,819 14,768 103,498 Net asset value of shares issued to shareholders in payment of dividends declared 890 1,891 2,062 3,712 Cost of shares redeemed (8,580) (10,808) (7,761) (8,150) - ----------------------------------------------------------------------------------------------------------- Change in net assets from Fund share transactions (4,487) 53,902 9,069 99,060 - ----------------------------------------------------------------------------------------------------------- Change in net assets (7,249) 53,375 1,056 99,796 NET ASSETS: Beginning of period 53,375 -- 99,896 100 - ----------------------------------------------------------------------------------------------------------- End of period $46,126 $ 53,375 $100,952 $99,896 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Net gain (loss) as computed for federal tax purposes (Note 2D) ($251) ($222) ($229) ($307) - ----------------------------------------------------------------------------------------------------------- Undistributed net investment income $18 $13 $68 $32 - -----------------------------------------------------------------------------------------------------------
* Six months ended July 31, 1994 (unaudited). ** For the period from February 19, 1993 (date of initial public investments) to January 31, 1994. *** For the period from January 19, 1993 (start of business) to January 31, 1994. (See Notes which are an integral part of the Financial Statements) TRADEMARK EQUITY FUND FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR ENDED JANUARY 31, -------------------- 1995* 1994** - ----------------------------------------------------------------------- ------ ------ NET ASSET VALUE, BEGINNING OF PERIOD $10.95 $10.00 - ----------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS - ----------------------------------------------------------------------- Net investment income 0.10 0.17 - ----------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments (0.22) 1.28 ---- - ----------------------------------------------------------------------- ------ Total from investment operations (0.12) 1.45 - ----------------------------------------------------------------------- LESS DISTRIBUTIONS - ----------------------------------------------------------------------- Dividends to shareholders from net investment income (0.10) (0.16) - ----------------------------------------------------------------------- Dividends to shareholders from net realized gain on investment transactions (0.07) (0.34) ---- - ----------------------------------------------------------------------- ------ Total distributions (0.17) (0.50) ---- - ----------------------------------------------------------------------- ------ NET ASSET VALUE, END OF PERIOD $10.66 $10.95 ---- - ----------------------------------------------------------------------- ------ TOTAL RETURN*** (1.02%) 14.72% - ----------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS - ----------------------------------------------------------------------- Expenses 0.86%(b) 0.74%(b) - ----------------------------------------------------------------------- Net investment income 1.84%(b) 1.69%(b) - ----------------------------------------------------------------------- Expense waiver/reimbursement (a) 0.25%(b) 0.39%(b) - ----------------------------------------------------------------------- SUPPLEMENTAL DATA - ----------------------------------------------------------------------- Net assets, end of period (000 omitted) $142,811 $132,765 - ----------------------------------------------------------------------- Portfolio turnover rate 21% 59% - -----------------------------------------------------------------------
* Six months ended July 31, 1994 (unaudited). ** Reflects operations for the period from February 19, 1993 (date of initial public investment) to January 31, 1994. *** Based on net asset value, which does not reflect the sales load or contingent deferred sales charge, if applicable. (a) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above (Note 4). (b) Computed on an annualized basis. (See Notes which are an integral part of the Financial Statements) TRADEMARK KENTUCKY MUNICIPAL BOND FUND FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR ENDED JANUARY 31, ------------------- 1995* 1994** - -------------------------------------------------------------------- ------ ------ - -------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $10.45 $10.00 - -------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS - -------------------------------------------------------------------- Net investment income 0.22 0.36 - -------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments (0.59) 0.43 - -------------------------------------------------------------------- ------ ----- Total from investment operations (0.37) 0.79 - -------------------------------------------------------------------- LESS DISTRIBUTIONS - -------------------------------------------------------------------- Dividends to shareholders from net investment income (0.21) (0.34) - -------------------------------------------------------------------- ------ ------ NET ASSET VALUE, END OF PERIOD $9.87 $10.45 - -------------------------------------------------------------------- ------ ------ TOTAL RETURN*** (3.51%) 8.05% - -------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS - -------------------------------------------------------------------- Expenses 0.87%(b) 0.70%(b) - -------------------------------------------------------------------- Net investment income 4.39%(b) 4.19%(b) - -------------------------------------------------------------------- Expense waiver/reimbursement (a) -- 0.21%(b) - -------------------------------------------------------------------- SUPPLEMENTAL DATA - -------------------------------------------------------------------- Net assets, end of period (000 omitted) $58,025 $64,663 - -------------------------------------------------------------------- Portfolio turnover rate 3% 5% - --------------------------------------------------------------------
* Six months ended July 31, 1994 (unaudited). ** Reflects operations for the period from March 12, 1993 (date of initial public investment) to January 31, 1994. *** Based on net asset value, which does not reflect the sales load or contingent deferred sales charge, if applicable. (a) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above (Note 4). (b) Computed on an annualized basis. (See Notes which are an integral part of the Financial Statements) TRADEMARK SHORT-INTERMEDIATE GOVERNMENT FUND FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR ENDED JANUARY 31, ------------------ 1995* 1994** - ------------------------------------------------------------------- ----- ------ NET ASSET VALUE, BEGINNING OF PERIOD $9.90 $10.00 - ------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS - ------------------------------------------------------------------- Net investment income 0.27 0.55 - ------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments (0.51) (0.10) - ------------------------------------------------------------------- ----- ----- Total from investment operations (0.24) 0.45 - ------------------------------------------------------------------- LESS DISTRIBUTIONS - ------------------------------------------------------------------- Dividends to shareholders from net investment income (0.27) (0.55) - ------------------------------------------------------------------- ----- ----- NET ASSET VALUE, END OF PERIOD $9.39 $9.90 - ------------------------------------------------------------------- ----- ----- TOTAL RETURN*** (2.39%) 4.61% - ------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS - ------------------------------------------------------------------- Expenses 0.95%(b) 0.86%(b) - ------------------------------------------------------------------- Net investment income 5.77%(b) 5.91%(b) - ------------------------------------------------------------------- Expense waiver/reimbursement (a) 0.10%(b) 0.18%(b) - ------------------------------------------------------------------- SUPPLEMENTAL DATA - ------------------------------------------------------------------- Net assets, end of period (000 omitted) $46,126 $53,375 - ------------------------------------------------------------------- Portfolio turnover rate 13% 21% - -------------------------------------------------------------------
* Six months ended July 31, 1994 (unaudited). ** Reflects operations for the period from February 19, 1993 (date of initial public investment) to January 31, 1994. *** Based on net asset value, which does not reflect the sales load or contingent deferred sales charge, if applicable. (a) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above (Note 4). (b) Computed on an annualized basis. (See Notes which are an integral part of the Financial Statements) TRADEMARK GOVERNMENT INCOME FUND FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR ENDED JANUARY 31, ------------------- 1995* 1994** - ------------------------------------------------------------------ ------ ------ - ------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $10.12 $10.00 - ------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS - ------------------------------------------------------------------ Net investment income 0.29 0.56 - ------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments (0.77) 0.12 - ------------------------------------------------------------------ ------ ------ Total from investment operations (0.48) 0.68 - ------------------------------------------------------------------ LESS DISTRIBUTIONS - ------------------------------------------------------------------ Dividends to shareholders from net investment income (0.29) (0.56) - ------------------------------------------------------------------ ----- ------ NET ASSET VALUE, END OF PERIOD $9.35 $10.12 - ------------------------------------------------------------------ ----- ------ TOTAL RETURN*** (4.78%) 6.98% - ------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS - ------------------------------------------------------------------ Expenses 0.85%(b) 0.80%(b) - ------------------------------------------------------------------ Net investment income 6.15%(b) 5.97%(b) - ------------------------------------------------------------------ Expense waiver/reimbursement (a) 0.07%(b) 0.14%(b) - ------------------------------------------------------------------ SUPPLEMENTAL DATA - ------------------------------------------------------------------ Net assets, end of period (000 omitted) $100,952 $99,896 - ------------------------------------------------------------------ Portfolio turnover rate 2% 21% - ------------------------------------------------------------------
* Six months ended July 31, 1994 (unaudited). ** Reflects operations for the period from February 19, 1993 (date of initial public investment) to January 31, 1994. *** Based on net asset value, which does not reflect the sales load or contingent deferred sales charge, if applicable. (a) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above (Note 4). (b) Computed on an annualized basis. (See Notes which are an integral part of the Financial Statements) TRADEMARK FUNDS NOTES TO FINANCIAL STATEMENTS JULY 31, 1994 (UNAUDITED) - -------------------------------------------------------------------------------- (1) ORGANIZATION Trademark Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended, (the "Act"), as an open-end, management investment company. The Trust consists of three diversified portfolios (individually referred to as the "Fund", or collectively as the "Funds"): Trademark Equity Fund ("Equity Fund"), Trademark Short-Intermediate Government Fund ("Short-Intermediate Fund"), and Trademark Government Income Fund ("Government Income Fund"), and one non-diversified portfolio, Trademark Kentucky Municipal Bond Fund ("Kentucky Municipal Bond Fund"). The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. (2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles. A. INVESTMENT VALUATIONS--Listed equity securities, corporate bonds and other fixed income securities are valued at the last sale price reported on national securities exchanges. Unlisted securities, bonds and short-term obligations (and private placement securities) are generally valued at the prices provided by an independent pricing service. U.S. government obligations are generally valued at the mean between the over-the-counter bid and asked prices as furnished by an independent pricing service. 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 it deems relevant in determining valuations for normal institutional size trading units of debt securities. The independent pricing service does not rely exclusively on quoted prices. Short-term securities with remaining maturities of sixty days or less may be stated at amortized cost, which approximates value. Investments in other regulated investment companies are valued at net asset value. B. 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 in support of repurchase agreement investments. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement's underlying collateral to ensure that the value of collateral at least equals the principal amount of the repurchase agreement, including accrued interest. The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as brokers/dealers, which are deemed by the Trust's adviser to be creditworthy
TRADEMARK FUNDS - -------------------------------------------------------------------------------- pursuant to guidelines established by the Trustees. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities. C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. D. FEDERAL TAXES--It is each Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of their taxable or tax-exempt income. Accordingly, no provisions for federal tax are necessary. At January 31, 1994, the Kentucky Municipal Bond Fund, Short-Intermediate Fund, and the Government Income Fund, for federal tax purposes, had a capital loss carryforward of $1,362, $221,766, and $306,538, respectively, which will reduce the Fund's 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 for the Kentucky Municipal Bond Fund, Short-Intermediate Fund, and the Government Income Fund, will expire in 2002 ($1,362), ($221,766), and ($306,538), respectively. Additionally, net capital losses, of $0, $118,210, and $194,698, respectively, attributable to security transactions incurred after October 31, 1993, are treated as arising on February 1, 1994, the first day of each Fund's next taxable year. E. 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 maintains 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. F. DEFERRED EXPENSES--The costs incurred by the Funds with respect to registration of its shares in its first fiscal year, excluding the initial expense of registering the shares, have been deferred and are being amortized using the straight-line method not to exceed a period of five years from the Funds' commencement date. G. OTHER--Investment transactions are accounted for on the trade date.
TRADEMARK FUNDS - -------------------------------------------------------------------------------- (3) SHARE 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 Fund shares were as follows (all numbers in thousands):
KENTUCKY MUNICIPAL EQUITY FUND BOND FUND ---------------- ------------------ YEAR ENDED YEAR ENDED JANUARY JANUARY 31, 31, 1995* 1994** 1995* 1994*** - ------------------------------------------------------------------------------------------------ Shares sold 1,888 12,853 806 7,061 Shares issued to shareholders in payment of dividends declared 175 473 19 15 Shares redeemed (792) (1,202) (1,135) (886) - ------------------------------------------------------------------------------------------------ Net change resulting from Fund share transactions 1,271 12,124 (310) 6,190 - ------------------------------------------------------------------------------------------------
SHORT- INTERMEDIATE GOVERNMENT GOVERNMENT FUND INCOME FUND ---------------- ------------------ YEAR ENDED YEAR ENDED JANUARY JANUARY 31, 31, 1995* 1994** 1995* 1994**** - ----------------------------------------------------------------------------------------------- Shares sold 333 6,282 1,541 10,296 Shares issued to shareholders in payment of dividends declared 94 190 218 368 Shares redeemed (905) (1,080) (827) (807) - ----------------------------------------------------------------------------------------------- Net change resulting from Fund share transactions (478) 5,392 932 9,857 - -----------------------------------------------------------------------------------------------
* Six months ended July 31, 1994. ** For the period from February 19, 1993 (date of initial public investment) to January 31, 1994. *** For the period from March 12, 1993 (date of initial public investment) to January 31, 1994. **** For the period from January 19, 1993 (start of business) to January 31, 1994. TRADEMARK FUNDS - -------------------------------------------------------------------------------- (4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISORY FEE--Liberty National Bank and Trust Company of Kentucky, the Trust's investment adviser (the "Adviser"), receives for its services an annual investment advisory fee based on a percentage of each Fund's average daily net assets (see below). The Adviser may voluntarily choose to waive a portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.
ANNUAL FUND RATE ----------------------------------------------------------------- -------- Equity Fund 0.85% ----------------------------------------------------------------- Kentucky Municipal Bond Fund 0.50% ----------------------------------------------------------------- Short-Intermediate Fund 0.60% ----------------------------------------------------------------- Government Income Fund 0.60% -----------------------------------------------------------------
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Funds with certain administrative personnel and services. The FAS fee is based on the level of average aggregate net assets of the Funds for the period. FAS may voluntarily choose to waive a portion of its fee. DISTRIBUTION SERVICES FEE--The Trust has adopted a Distribution Plan (the "Plan"), pursuant to Rule 12b-1 under the Act. The Funds will not accrue or pay 12b-1 fees until they have created a separate class of shares (which would not have a 12b-1 plan) for trust and investment agency clients of the Adviser. When the Plan becomes effective the Trust will pay Federated Securities Corp. ("FSC"), the principal distributor, up to .25 of 1% of the average daily net assets of the Funds, annually, to pay commissions, maintenance fees and to compensate the distributor. TRANSFER AND DIVIDEND DISBURSING AGENT AND PORTFOLIO ACCOUNTING FEES--Federated Services Company ("FServ") serves as transfer and dividend disbursing agent for the Funds. The FServ fee is based on the size, type and number of accounts and transactions made by shareholders. FServ also maintains each Funds' accounting records. The fee is based on the level of each Fund's average net assets for the period plus, out-of-pocket expenses. ORGANIZATIONAL EXPENSES--Organizational expenses were borne initially by FAS. The Funds have agreed to reimburse FAS for the organization expenses borne by FAS during the five year period following the date the Trust's portfolio became effective. TRADEMARK FUNDS - -------------------------------------------------------------------------------- For the period ended July 31, 1994, the following amounts were paid to FAS pursuant to this agreement.
EFFECTIVE ORGANIZATIONAL ORGANIZATIONAL FUND DATE EXPENSES EXPENSES PAID - ---------------------------------------------- --------- -------------- -------------- Equity Fund 2/9/93 $ 34,692 $2,356 - ---------------------------------------------- Kentucky Municipal Bond Fund 2/9/93 36,923 2,358 - ---------------------------------------------- Short-Intermediate Fund 2/9/93 36,243 2,358 - ---------------------------------------------- Government Income Fund 2/9/93 36,426 2,189 - ----------------------------------------------
Certain Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies. (5) INVESTMENT TRANSACTIONS Purchases and sales of investments, excluding short-term securities, for the six months ended July 31, 1994 were as follows (all numbers in thousands):
SHORT- KENTUCKY INTERMEDIATE EQUITY MUNICIPAL GOVERNMENT GOVERNMENT FUND BOND FUND FUND INCOME FUND - ---------------------------------------- ------- ---------- ------------- ----------- Purchases $45,338 $4,226 $ 1,967 $14,235 - ---------------------------------------- Sales $27,281 $1,656 $ 6,110 $ 1,501 - ----------------------------------------
(6) CONCENTRATION OF CREDIT RISK Since the Kentucky Municipal Bond Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable general tax-exempt mutual fund. In order to reduce the credit risk associated with such factors, at July 31, 1994, 41.6% of the securities in the portfolio of investments are backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The value of investments insured or supported (backed) by a letter of credit for any one institution or agency ranged from 0.6% to 17% of total investments. TRUSTEES OFFICERS - --------------------------------------------------------------------------------------------- Peter C. Marshall Edward C. Gonzales Charles I. Post President and Treasurer John S. Randall Craig P. Churman Frederick W. Ruebeck Vice President and Assistant Treasurer C. Grant Anderson Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the FDIC, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves risk, including possible loss of principal. This report is authorized for distribution to prospective investors only when preceded or accompanied by the Funds' prospectus which contains facts concerning its objective and policies, management fees, expenses and other information. Appendix A,B,C The graphic presentation here displayed consists of an illustrative chart entitled "Treasury Yield Curves-Current versus Prior-Week, July 21, 1994." The chart is a visual representation of intermediate term Treasury yields for the week ended July 21, 1994, the prior week and six months prior. The "x" axis reflects the maturity from 0 to 30 years. The "y" axis reflects the yield percentages for the period with a range from 2% to 8%. The present chart shows that for the week ended July 21, 1994, and the prior week, the yields ranged between 4.5% and 7%. For the six months prior to July 21, 1994, the yields ranged between 3% and 6%. -----END PRIVACY-ENHANCED MESSAGE-----