U.S Government Income Fund

The Armada U.S. Government Income Fund is for investors who wish to earn current income while preserving capital. The Fund invests primarily in U.S. agency mortgage-backed securities and other obligations issued by the United States government.  		xml version="1.0"?>
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PRICE  (A Shares as of 6/26): $9.55
as of 3/31/2003     Average Annual Total Returns and Ratings
U.S Government Income Fund 1,2,3 SEC
30-Day
Yield		 1-Day
Yield		 Current
Quarter End		 YTD 1YR 3YR 5YR 10YR/
Since Inception
A Shares 3.63% 3.85% -4.11% -4.11% 2.78% 6.42% 5.37% 5.75%
B Shares 3.13% 3.15% -4.48% -4.48% 2.00% 6.19% 5.31% 5.54%
C Shares 3.26% 3.15% -0.39% -0.39% 6.11% 7.56% 5.76% 5.60%
H Shares 3.09% 3.15% -1.43% -1.43% 5.10% 7.21% 5.56% 5.50%
I Shares 4.11% 4.10% 0.74% 0.74% 8.02% 8.42% 6.67% 6.50%
Lehman Fixed Rate Mortgage Backed Securities Index* N/A N/A 1.01% 1.01% 8.76% 9.24% 7.21% N/A
U.S Government Income Fund Quarterly Fund Fact Sheet - A, B, H Shares,  C Shares,   I Shares 

Investment Objective

The Armada U.S. Government Income Fund seeks to provide current income as well as preservation of capital by investing in securities issued or guaranteed by the U.S. government.

Risk & Reward
Asset Class Comparison


Compare this Fund to other Armada Funds

Fund Statistics

Class A Shares
Cusip Number 04208N879
NASDAQ Symbol ARSAX
Inception Date 11/12/1992
Dividends Frequency Monthly

as of 6/26/2003
Net Asset Value as of 6/26/2003 $9.55
Net Asset Value past 12 months
High: $9.62
Low: $9.48
Public Offering Price $10.03

as of 3/31/2003
Dividends Paid ($ per share)
Past Quarter:
Current Year:
 
$0.1287
$0.0951
Total Net Assets (millions) $226.24

as of 3/31/2003
SEC 30 Day Yield 3.63%
Avg. Weight Mat. 2.08 Years
Duration 1.58

Sector Diversification+


RELATED PARTY MONEY MARKET FUND 4.38%  
MISCELLANEOUS SERVICES 3.59%  
MEMBERSHIP ORGANIZATIONS 3.57%  
FEDERAL NATIONAL MORTGAGE ASSOCIATION 3.41%  
FEDERAL NATIONAL MORTGAGE ASSOC. 1.79%  


Investment Strategy

Strives to achieve superior returns through active sector and security selection and disciplined risk management.

The Armada U.S. Government Income Fundfs management team believes that superior returns are achieved when active sector and security selection are combined with disciplined risk management. In general, at least 80% of the Fundfs assets will be invested in obligations issued or guaranteed * by the U.S. government, its agencies, or instrumentalities. Up to 20% may be invested in the preferred stock of non-government issuers or non-governmental asset-backed securities. The dollar-weighted average maturity of the fund is expected to remain within three to ten years. The Fundfs duration (its sensitivity to interest rate changes) will remain within 20% of its benchmark index, the Lehman Mortgage Backed Securities Index. +

Growth of a $10,000 Investment


Provides a graphical-view of this fund’s growth of $10,000 without sales charges over a multi-year period. The graph illustrates two values: growth of principal only and growth of principal including reinvestment of dividends and capital gains.


Investment Quality▲


Agency89.0%
Treasury9.0%
AAA2.0%

Management Team

At Armada, specialization is the key to our investment management philosophy. Our portfolio managers and research analysts work in independent teams. Each team focuses on a single sector or investment style. Their dedication and clear focus are reflected in the unwavering style purity of our funds.

Taxable Fixed Income Management Team
Andrew Harding  Director of Taxable Fixed Income Investment
Cynthia Cole  Senior Portfolio Manager
Joseph Robison  Director and Chief Credit Officer
Matthew Downing  Fixed Income Analyst
Melvin Fernandes  Fixed Income Analyst


Armada Fund Family
Small Cap Growth Fund Mid Cap Growth Fund Large Cap Ultra Fund International Equity Fund Small Cap Value Fund Small/Mid Cap Value Fund Equity Growth Fund Tax Managed Equity Fund Equity Index Fund Core Equity Fund Large Cap Value Fund Aggressive Asset Allocation Fund Balanced Asset Allocation Fund Conservative Asset Allocation Fund GNMA Fund U.S. Government Income Fund Bond Fund Total Return Advantage Fund Limited Maturity Bond Fund Intermediate Bond Fund Ohio Municipal Money Market Fund Pennsylvania Tax Exempt Money Market Fund Tax Exempt Money Market Fund Money Market Fund Government Money Market Fund Treasury Plus Money Market Fund Treasury Money Market Fund National Tax Exempt Bond Fund Pennsylvania Municipal Bond Fund Ohio Tax Exempt Bond Fund Michigan Municipal Bond Fund

*The Lehman Mortgage Backed Securities Index is a widely recognized market value weighted index of mortgage backed securities issued by GNMA, FHLMC and Fannie Mae and not available for direct investment. Unlike a mutual fund, the performance of the index assumes no taxes, transaction costs, management fees or other expenses.

▲Quality ratings such as AAA refer to credit risk of the portfolio securities and not the shares of the Fund.

+Composition of the portfolio is as of 5/31/2003 and is for illustration purposes only. The composition of the portfolio is not a permanent reflection of the Fund. Under normal circumstances, the Fund will invest at least 80% of the value of its net assets in obligations issued or guaranteed by the U.S. government or its agencies or instrumentalities.

1Guarantees by the U.S. Government, its agencies, or instrumentalities relate only to the payment of principal and interest of the portfolio securities and not the shares of the Fund.

2An investment in the Fund is subject to interest rate risk, which is the possibility that the Fundfs yield will decline due to falling interest rates.

3Returns for the U.S. Government Income Fund include the performance of the Parkstone U.S. Government Income Fund for the period prior to the Parkstone U.S. Government Income Fund reorganization into Armada on June 10, 2000.

Total returns reflect reinvestment of dividends and capital gains and any applicable sales charges as noted below. Returns also reflect a voluntary waiver of fund fees and expenses. Without such fee waivers performance of the Fund would have been lower.

The inception dates for Class A Shares, Class B Shares, Class C Shares and Class H Shares for the Armada U.S. Government Income Fund are 11/12/92, 2/04/94, 6/21/00, and, 2/05/02, respectively. All performance shown for each class of shares prior to such inception dates is based on the performance of Class I shares, adjusted to reflect each share classfs maximum sales charges as specified below.

The maximum sales charge for Class A Shares is 5.50%. With respect to Class B Shares, the maximum contingent deferred sales charge is 5.00%. Class H Shares have a 1.00% front-end sales charge, in addition to a 1.00% maximum contingent deferred sales charge. Class C Shares do not have a front-end sales charge, but do have a 1.00% charge on the redemption of shares that are held for less than 18 months.

Performance reflects reinvestment of dividends and capital gains. In addition, performance reflects a voluntary waiver of fund fees and expenses. For more detailed information, please read the prospectus.

Past performance is not indicative of future results. The performance of each class will differ due to differences in sales charge structures and class expenses. Returns and share prices will fluctuate and on redemption, shares may be worth more or less than their original costs.

Shares of Armada Funds are not insured by the FDIC, are not deposits or obligations of, or guaranteed by the bank and involve investment risks, including possible loss of principal. Performance figures quoted herein may be lower due to recent market volatility. National City Investment Management Company (IMC) serves as investment adviser to Armada Funds, for which it receives an investment advisory fee. Armada Funds are distributed by Professional Funds Distributor, LLC (PFD), 760 Moore Road, King of Prussia, PA, 19406. PFD is not affiliated with IMC and is not a bank.

This must be accompanied or preceded by a current Armada prospectus. For more complete information, including the charges and expenses of each fund please obtain a prospectus by calling 1-800-622-3863 or by downloading a printed copy of the prospectus at www.armadafunds.com. Please read the prospectus carefully before you invest or send money.

·All market data and information is provided by S&P and is for informational purposes only. Armada does not guarantee that the information supplied is accurate, complete or timely, or make any warranties regarding the results obtained by its use.



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