Armada Funds - Funds - Fixed Income - Ultra Short Bond Fund

Ultra Short Bond Fund

The Armada Ultra Short Bond Fund is for investors who seek higher returns than those offered by money market funds and are willing to accept some principal fluctuation in pursuit of higher returns. The Ultra Short Bond Fund invests in a diversified portfolio of short-term, investment grade bonds. For historical H Share performance, click here.

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MARKET WATCH^†

12:00 pm ET, 12/20(03:56 to NY close)

	S&P 500	1196.45	+2.25	0.19%

	DJIA	10680.74	+30.82	0.29%

	NASDAQ	2131.13	-4.07	-0.19%

	10-yr Note	4.18	-0.02	-0.57%

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PRICE ( as of 12/17): $9.94

Ultra Short Bond Fund ^1,2
Average Annual Total Returns

	as of 9/30/2004
	Inception Date	SEC 30-Day Yield	1-Day Yield	Current Quarter End	YTD	1YR	3YR	5YR	10YR	Since Inception
A Shares	01/06/03	1.75%	1.82%	-0.55%	-0.48%	-0.31%	N/A	N/A	N/A	0.83%
I Shares	12/02/02	2.02%	2.07%	0.51%	0.80%	1.03%	N/A	N/A	N/A	1.69%
Merrill Lynch 1 Year Treasury*		N/A	N/A	0.49%	0.64%	0.89%	2.15%	4.09%	4.96%	N/A
Merrill Lynch 1-3 Year U.S. Corporate/Government Index*		N/A	N/A	1.13%	1.11%	1.37%	3.56%	5.44%	5.94%	N/A

Total returns reflect reinvestment of dividends, capital gains and deduction of applicable sales charges, operating expenses and fees. The inception date for Class A shares is 1/06/03. Performance shown for this inception date is based on the performance of Class I shares, adjusted to reflect Class A share’s fees, expenses and maximum sales charges.

The maximum sales charge for class A shares is 1.00%.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at www.armadafunds.com.

An investment in the Fund is subject to interest rate risk, which is the possibility that a Fund’s yield will decline due to falling interest rates. High yielding, non-investment grade bonds present a greater risk of loss to principal and interest than investment grade securities. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. Although U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates.

Ultra Short Bond Fund Quarterly Fund Fact Sheet - A Shares, I Shares

Investment Objective

Armada Ultra Short Bond Fund seeks to obtain high current income while preserving capital by investing in a portfolio of investment grade fixed income securities.

Risk & Reward
Asset Class Comparison

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Fund Statistics


Class	A Shares
Cusip Number	04208P304
NASDAQ Symbol	ASDAX
Inception Date	1/6/2003
Dividends Frequency	Monthly

as of 12/17/2004

Net Asset Value as of 12/17/2004

$9.94

Net Asset Value past 12 months
	High:	$10.05
	Low:	$9.94

Public Offering Price

$10.04

as of 9/30/2004

Dividends Paid ($ per share)

Past Quarter:

Current Year:

$0.0296

$0.1198

Total Net Assets (millions)

$169.31

as of 9/30/2004


SEC 30 Day Yield	1.75%
Current Income Distribution Yield	1.80%
Avg. Weight Mat.	0.96 Years
Duration	0.84

Sector Diversification⁺


CORPORATE BONDS	20.67%
ASSET-BACKED SECURITIES	19.27%
U.S. TREASURY NOTES	18.80%
FEDERAL HOME LOAN BANK	17.02%
FEDERAL NATIONAL MORTGAGE ASSOCIATION	8.81%
COLLATERALIZED MORTGAGE OBLIGATIONS	6.81%
FEDERAL HOME LOAN MORTGAGE CORPORATION	5.19%
CASH & CASH EQUIVALENTS	3.43%

Investment Strategy

Armada Ultra Short Bond Fund invests in U.S. government, mortgage-backed, and asset-backed fixed income securities. While the managers can select any investment grade opportunity, they tend to concentrate the fund in AAA rated asset-backed securities that offer potentially higher income and returns. The Fund's duration (its sensitivity to interest rate changes) is expected to remain within 20% of its benchmark index, the Merrill Lynch 1-3 year U.S. Corporate/Government Index, and the Merrill Lynch 1-Year Treasury Index.*

Growth of a $10,000 Investment

Provides a graphical view of this Fund’s growth of $10,000 with an adjustment for sales charges and expenses, where applicable from the Fund’s inception. The graph illustrates growth of principal including reinvestment of dividends and capital gains.

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.

	Andrew Harding Senior Director for Taxable Fixed Income Investment
	Cynthia Cole Director of Corporate Bond Investment
	Joseph Robison Director & Chief Credit Officer
	Timothy Compan, Jr., CFA Senior Debt Securities Analyst
	Akin V. Rojugbokan Senior Credit Analyst
	Brian Stine, CFA Product Specialist
	Matthew Downing Fixed Income Analyst
	Melvin Fernandes Fixed Income Analyst
	Mark Lozina, CFA Fixed Income Analyst
	Richard P. Mears Fixed Income Analyst



Armada Fund Family

*The Merrill Lynch 1-3 Year U.S. Corporate/Government Index, a market capitalization weighted index including U.S. Treasury and agency bonds and U.S. investment grade corporate bonds, and the Merrill Lynch 1-Year Treasury Index, a market capitalization weighted index including U.S. Treasury, are unmanaged indexes not available for direct investment. Unlike a mutual fund, the performance of an index assumes no taxes, transaction costs, management fees or other expenses.

^▲Quality ratings such as AAA, AA, BBB, and BB refer to credit risk of the portfolio securities and not the shares of the Fund.

^† All market data and information is provided by Standard & Poor's 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.

NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE

You should consider the investment objectives, risks, charges and expenses of the Armada Funds carefully before investing. A prospectus may be downloaded and viewed with this and other information about the Funds or may be obtained by contacting an investment professional or by calling 1-800-622-FUND (3863.) Please read it carefully before you invest or send money.

National City Investment Management Company (IMC) serves as investment adviser to Armada Funds for which it receives an investment advisory fee. Shares of 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.

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