<PAGE> PAGE 1
000 A000000 12/31/97
000 C000000 0001036373
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 THE DRESHER FAMILY OF FUNDS
001 B000000 811-08177
001 C000000 2158817000
002 A000000 715 TWINING ROAD, SUITE 200
002 B000000 DRESHER
002 C000000 PA
002 D010000 19025
003 000000 Y
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C020100 THE DRESHER CLASSIC RETIREMENT FUND
007 C030100 N
007 C010200 2
007 C020200 THE DRESHER COMPREHENSIVE GROWTH FUND
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 NATIONAL FINANCIAL ADVISORS, INC.
008 B00AA01 A
008 C00AA01 801-408-09
008 D01AA01 DRESHER
008 D02AA01 PA
008 D03AA01 19025
010 A00AA01 NATIONAL SHAREHOLDER SERVICES, INC.
010 C01AA01 DRESHER
010 C02AA01 PA
010 C03AA01 19025
013 A00AA01 SANVILLE & COMPANY
013 B01AA01 ABINGTON
013 B02AA01 PA
013 B03AA01 19001
013 A00AA09 SANVILLE & COMPANY
<PAGE> PAGE 2
013 B01AA09 ABINGTON
013 B02AA09 PA
013 B03AA09 19001
014 A00AA01 NFA BROKERAGE SERVICES, INC.
014 B00AA01 8-47870
015 A00AA01 FIRSTRUST BANK
015 B00AA01 C
015 C01AA01 PHILADELPHIA
015 C02AA01 PA
015 C03AA01 19111
015 E01AA01 X
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 A000001 NFA BROKERAGE SERVICES, INC.
020 B000001 23-2784630
020 C000001 5
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 5
022 C000001 0
022 D000001 0
022 C000002 0
022 D000002 0
022 C000003 0
022 D000003 0
022 C000004 0
022 D000004 0
022 C000005 0
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 0
023 D000000 0
024 00AA00 N
025 D00AA01 0
<PAGE> PAGE 3
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 N
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.950
048 A01AA00 0
048 A02AA00 0.000
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
<PAGE> PAGE 4
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 0
048 K02AA00 0.000
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 N
054 A00AA00 N
054 B00AA00 N
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 N
054 I00AA00 N
054 J00AA00 N
054 K00AA00 N
054 L00AA00 N
054 M00AA00 N
054 N00AA00 N
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 Y
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 10000
062 A00AA00 N
062 B00AA00 0.0
062 C00AA00 0.0
062 D00AA00 0.0
062 E00AA00 0.0
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 0.0
062 J00AA00 0.0
062 K00AA00 0.0
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
<PAGE> PAGE 5
062 O00AA00 0.0
062 P00AA00 0.0
062 Q00AA00 0.0
062 R00AA00 0.0
063 A00AA00 0
063 B00AA00 0.0
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
070 A01AA00 N
070 A02AA00 N
070 B01AA00 N
070 B02AA00 N
070 C01AA00 N
070 C02AA00 N
070 D01AA00 N
070 D02AA00 N
070 E01AA00 N
070 E02AA00 N
070 F01AA00 N
070 F02AA00 N
070 G01AA00 N
070 G02AA00 N
070 H01AA00 N
070 H02AA00 N
070 I01AA00 N
070 I02AA00 N
070 J01AA00 N
070 J02AA00 N
070 K01AA00 Y
070 K02AA00 Y
070 L01AA00 N
070 L02AA00 N
070 M01AA00 N
070 M02AA00 N
070 N01AA00 N
070 N02AA00 N
070 O01AA00 N
070 O02AA00 N
070 P01AA00 N
070 P02AA00 N
070 Q01AA00 N
070 Q02AA00 N
070 R01AA00 N
070 R02AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
<PAGE> PAGE 6
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 C00AA00 0
081 B00AA00 0
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 N
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
028 A010100 0
028 A020100 0
028 A030100 0
028 A040100 0
028 B010100 0
028 B020100 0
028 B030100 0
028 B040100 0
028 C010100 0
028 C020100 0
028 C030100 0
028 C040100 0
028 D010100 4757
028 D020100 4
<PAGE> PAGE 7
028 D030100 0
028 D040100 10
028 E010100 150
028 E020100 4
028 E030100 0
028 E040100 0
028 F010100 127
028 F020100 183
028 F030100 0
028 F040100 361
028 G010100 5034
028 G020100 191
028 G030100 0
028 G040100 371
028 H000100 0
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 0
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 100
043 000100 3
044 000100 0
071 A000100 3329
071 B000100 226
071 C000100 3742
071 D000100 6
072 A000100 3
072 B000100 33
072 C000100 45
072 D000100 0
072 E000100 0
072 F000100 14
072 G000100 0
072 H000100 0
072 I000100 0
072 J000100 0
072 K000100 0
072 L000100 0
072 M000100 0
072 N000100 0
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 0
072 S000100 0
072 T000100 0
072 U000100 0
072 V000100 0
<PAGE> PAGE 8
072 W000100 0
072 X000100 14
072 Y000100 0
072 Z000100 64
072AA000100 136
072BB000100 20
072CC010100 0
072CC020100 189
072DD010100 64
072DD020100 0
072EE000100 116
073 A010100 0.3400
073 A020100 0.0000
073 B000100 0.6300
073 C000100 0.0000
074 A000100 1539
074 B000100 0
074 C000100 0
074 D000100 0
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 2914
074 J000100 206
074 K000100 0
074 L000100 7
074 M000100 0
074 N000100 4666
074 O000100 0
074 P000100 1
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 0
074 S000100 0
074 T000100 4665
074 U010100 193
074 U020100 0
074 V010100 24.20
074 V020100 0.00
074 W000100 0.0000
074 X000100 54
074 Y000100 0
075 A000100 0
075 B000100 4742
076 000100 0.00
028 A010200 0
028 A020200 0
028 A030200 0
<PAGE> PAGE 9
028 A040200 0
028 B010200 0
028 B020200 0
028 B030200 0
028 B040200 0
028 C010200 0
028 C020200 0
028 C030200 0
028 C040200 0
028 D010200 3793
028 D020200 3
028 D030200 0
028 D040200 56
028 E010200 63
028 E020200 3
028 E030200 0
028 E040200 0
028 F010200 48
028 F020200 112
028 F030200 0
028 F040200 268
028 G010200 3904
028 G020200 118
028 G030200 0
028 G040200 324
028 H000200 0
042 A000200 0
042 B000200 0
042 C000200 0
042 D000200 0
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 100
043 000200 2
044 000200 0
071 A000200 2606
071 B000200 548
071 C000200 2493
071 D000200 22
072 A000200 3
072 B000200 24
072 C000200 34
072 D000200 0
072 E000200 0
072 F000200 11
072 G000200 0
072 H000200 0
072 I000200 0
072 J000200 0
072 K000200 0
<PAGE> PAGE 10
072 L000200 0
072 M000200 0
072 N000200 0
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 0
072 S000200 0
072 T000200 0
072 U000200 0
072 V000200 0
072 W000200 0
072 X000200 11
072 Y000200 0
072 Z000200 47
072AA000200 96
072BB000200 34
072CC010200 0
072CC020200 107
072DD010200 48
072DD020200 0
072EE000200 62
073 A010200 0.3300
073 A020200 0.0000
073 B000200 0.4300
073 C000200 0.0000
074 A000200 1121
074 B000200 0
074 C000200 0
074 D000200 0
074 E000200 0
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 1952
074 J000200 510
074 K000200 0
074 L000200 10
074 M000200 0
074 N000200 3593
074 O000200 0
074 P000200 1
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 0
074 S000200 0
074 T000200 3592
074 U010200 147
074 U020200 0
<PAGE> PAGE 11
074 V010200 24.44
074 V020200 0.00
074 W000200 0.0000
074 X000200 54
074 Y000200 0
075 A000200 0
075 B000200 3693
076 000200 0.00
SIGNATURE JEFFREY C. BROWN
TITLE PORTFOLIO MANAGER
The Dresher Family of Funds
The Dresher Classic Retirement Fund
&
The Dresher Comprehensive Growth Fund
Annual Report
December 31, 1997
<PAGE>
Dear Fellow Shareholders:
The Dresher Classic Retirement Fund ("Classic") had 192,735 outstanding shares
with a net asset value of $24.20 per share as of December 31, 1997.
As of the above date, the audited net asset value attributable to the 146,978
common shares outstanding of The Dresher Comprehensive Growth Fund ("Growth")
was $24.44 per share.
Management Discussion of Performance
General
The stock market, for a record third year in a row, exceeded a 20% return for
the year. Performance of the market as measured by the S&P 500 soared 33.35%.
However, the last quarter showed a return of only 2.87%. The Russell 2000
dropped 3.35% during the same period.
As you know, our Funds began investing on October 1, 1997. Owing to the then
uncertain market conditions, both Funds dollar-cost averaged assets through
the end of the year. Neither Fund had become fully invested by December 31;
accordingly, Management's decision to slowly enter the markets enabled both
Funds to escape much of the downturn that many of the other small- and mid-cap
stocks suffered. (Please note that the Funds have a small- and mid-cap bias.)
During the last quarter of the year, we faced a one-day 553 point drop, the
Asian crisis and a severe downturn in the technology sector, all of which
impacted performances.
Being long-term, value-oriented investors, we feel this turn of events creates
numerous buying opportunities in 1998. While we are likely to face a choppy
market, we are determined to stay the course. You can expect us to increase
certain positions in battered sectors.
The Dresher Classic Retirement Fund
The Dresher Classic Retirement Fund is a moderate-growth fund, which seeks
moderate capital appreciation and significant income. Under normal market
conditions, the Fund will invest no more than 65% of its assets (at the time
of investment) in mutual funds that invest primarily in common stock or
securities convertible into or exchangeable for common stock. We are pleased
that the Fund posted a negligible loss of -.20% (less than 1%), despite
extremely volatile conditions. The Brandywine Fund, with a heavy stake in
technology, plummeted 11.6 % on an average-weighted basis. Management is
aware of the extreme volatility of this fund, but is also cognizant of its
exceptional long-term record. The other fund that significantly underperformed
was The Sogen Fund. The fund's international exposure led to a loss of 4.31%
for the quarter. The fund has a well-earned reputation as a diversified,
relatively conservative, global fund. Brandywine and Sogen are both highly
regarded by Management and will play an important long-term role in the
<PAGE>
portfolio. On the positive side, Cohen & Steers continued its outstanding
record in the real estate market, returning 5.05%. Warburg Pincus Growth and
Income Fund and Mairs & Power Growth posted returns of 3.74% and 3.93%,
respectively.
The Dresher Comprehensive Growth Fund
The Dresher Comprehensive Growth Fund is a no-load, aggressive-growth fund
which seeks capital appreciation without regard to current income. Under
normal market conditions, it will invest at least 75% of its assets in mutual
funds that invest primarily in common stock or securities convertible or
exchangeable for common stock. Despite unfavorable market conditions, the Fund
posted a return of .28%. While Brandywine and two international funds posted
losses, strong performances were posted by Oakmark (5.64%), Torray (10.25%) and
Baron Asset (4.32%). The portfolio is designed to take advantage of pricing
inequities in the small- and mid-cap markets and thus, will be highly volatile.
The Fund benefited from dollar-cost averaging, which avoided the worst of the
market downturn and took advantage of the late December upturn.
Sincerely,
Jeffrey C. Brown
Portfolio Manager
<PAGE>
PORTFOLIO OF INVESTMENTS
THE DRESHER CLASSIC RETIREMENT FUND
DECEMBER 31, 1997
MARKET PERCENTAGE
FUND SHARES VALUE OF TOTAL
Greenspring Fund 23,340 $ 467,734 10.0%
Brandywine Fund 12,860 397,230 8.5%
Dodge & Cox Balanced Fund 5,598 373,852 8.0%
Berwyn Income Fund 22,968 287,334 6.2%
SoGen International Fund 10,926 278,073 6.0%
Northeast Investors Trust 20,477 238,556 5.1%
Warburg Pincus Growth & Income Fund 11,961 197,116 4.2%
Sound Shore Fund 5,964 170,404 3.7%
Third Avenue Value Fund 5,234 164,658 3.5%
Cohen & Steers Realty Shares 2,797 140,357 3.0%
Selected American Shares 4,241 115,265 2.5%
Mairs & Power Growth Fund 964 83,559 1.8%
Total Investments (cost $3,103,337) 2,914,138 62.5%
Other Assets and Liabilities 1,750,868 37.5%
Net Assets $ 4,665,006 100.0%
<PAGE>
PORTFOLIO OF INVESTMENTS
THE DRESHER COMPREHENSIVE GROWTH FUND
DECEMBER 31, 1997
MARKET PERCENTAGE
FUND SHARES VALUE OF TOTAL
Brandywine Fund 12,298 $ 379,885 10.6%
Franklin Mutual Discovery Fund 19,294 363,303 10.1%
Baron Asset Fund 6,603 320,318 8.9%
Greenspring Fund 14,469 289,967 8.1%
SoGen International Fund 7,914 201,420 5.6%
Oakmark Fund 3,208 129,648 3.6%
L. Roy Papp Stock Fund 3,395 101,093 2.8%
Strong Schafer Value Fund 1,548 98,911 2.8%
Torray Fund 1,980 67,033 1.9%
Total Investments (cost $2,058,162) 1,951,578 54.4%
Other Assets and Liabilities 1,639,950 45.6%
Net Assets $ 3,591,528 100.0%
<PAGE>
THE DRESHER FAMILY OF FUNDS
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
CLASSIC COMPREHENSIVE
RETIREMENT FUND GROWTH FUND
ASSETS
Investment in Securities:
At Acquisition Cost $ 3,103,337 $ 2,058,162
At Value (Note 1) $ 2,914,138 $ 1,951,578
Cash 1,539,344 1,121,281
Receivable For Investments Sold 205,700 510,109
Interest and Dividends Receivable 6,838 9,586
TOTAL ASSETS 4,666,020 3,592,554
LIABILITIES
Payable to Advisor (Note 3) 1,014 1,026
TOTAL LIABILITIES 1,014 1,026
NET ASSETS $ 4,665,006 $ 3,591,528
NET ASSETS consist of:
Capital Shares 4,854,209 3,698,113
Accumulated Net Investment Income (5) (1)
Accumulated Net Realized Gains on Investments 1 -
Net Unrealized Depreciation on Investments (189,199) (106,584)
NET ASSETS $ 4,665,006 $ 3,591,528
SHARES OUTSTANDING (Unlimited Number of
Shares Authorized, No Par Value) 192,735 146,978
NET ASSET VALUE PER SHARE $ 24.20 $ 24.44
<PAGE>
THE DRESHER FAMILY OF FUNDS
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM OCTOBER 1, 1997 (DATE OF COMMENCEMENT
OF INVESTMENT OPERATIONS) TO DECEMBER 31, 1997
CLASSIC COMPREHENSIVE
RETIREMENT FUND GROWTH FUND
INVESTMENT INCOME
Interest Income $ 32,946 $ 24,202
Dividend Income From Underlying Funds 45,238 34,322
Total Investment Income 78,184 58,524
EXPENSES
Management Fees (Note 3) 14,133 10,830
12b-1 Fees (Note 3) 2,955 2,257
Total Expenses Before Waiver By Advisor 17,088 13,087
Fees Waived By Advisor (Note 3) (2,955) (2,257)
Total Expenses After Fees Waived By Advisor 14,133 10,830
NET INVESTMENT INCOME 64,051 47,694
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Capital Gain Distributions Received From
Underlying Funds 135,862 96,113
Realized Loss on Sale of Underlying Funds (20,080) (33,683)
Unrealized Depreciation of Underlying Funds (189,199) (106,584)
Net Realized and Unrealized Gain (Loss) on
Investments (73,417) (44,154)
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (9,366) $ 3,540
<PAGE>
THE DRESHER FAMILY OF FUNDS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD FROM OCTOBER 1, 1997 (DATE OF COMMENCEMENT
OF INVESTMENT OPERATIONS) TO DECEMBER 31, 1997
CLASSIC COMPREHENSIVE
RETIREMENT FUND GROWTH FUND
OPERATIONS
Net Investment Income $ 64,051 $ 47,694
Net Realized Loss from Security Transactions (20,080) (33,683)
Capital Gain Distributions from Underlying Funds 135,862 96,113
Net Unrealized Depreciation in Underlying Funds (189,199) (106,584)
Increase (Decrease) in Net Assets from Operations (9,366) 3,540
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from Net Investment Income (64,056) (47,695)
Distributions from Net Realized Gains (115,781) (62,430)
Decrease in Net Assets due to Distributions (179,837) (110,125)
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold 5,033,643 3,903,870
Reinvestment of Distributions 191,140 118,297
Cost of Shares Redeemed (370,574) (324,054)
Increase in Net Assets due to Share Transactions 4,854,209 3,698,113
Increase in Net Assets 4,665,006 3,591,528
Net Assets - Beginning of Period - -
Net Assets - End of Period $ 4,665,006 $ 3,591,528
OTHER INFORMATION
Shares:
Sold 202,937 153,955
Issued in Reinvestment of Distributions 8,701 6,065
Redeemed (18,903) (13,042)
Net Increase 192,735 146,978
<PAGE>
THE DRESHER FAMILY OF FUNDS
FINANCIAL HIGHLIGHTS
FOR THE PERIOD FROM OCTOBER 1, 1997 (DATE OF COMMENCEMENT
OF INVESTMENT OPERATIONS) TO DECEMBER 31, 1997
Per share information for a share outstanding throughout the period.
CLASSIC COMPREHENSIVE
RETIREMENT FUND GROWTH FUND
Net Asset Value, Beginning of Period $ 25.23 $ 25.14
Investment Operations
Net Investment Income 0.34 0.33
Net Realized and Unrealized Gain on
Investments (0.40) (0.27)
Total from Investment Operations (0.06) 0.06
Distributions
Dividends from Net Investment Income (0.34) (0.33)
Distributions from Net Realized Gains (0.63) (0.43)
Total from Distributions (0.97) (0.76)
Net Asset Value, End of Period $ 24.20 $ 24.44
Total Return (0.20%) 0.28%
Ratio of Net Expenses to Average Net Assets 1.20% (a) 1.20% (a)
Ratio of Expenses Before Waiver to Average
Net Assets 1.45% (a) 1.45% (a)
Ratio of Net Investment Income to Average
Net Assets 5.36% (a) 5.12% (a)
Portfolio Turnover Rate 6.77% 22.39%
Net Assets, end of period (000's) $ 4,665 $ 3,592
(a) annualized
<PAGE>
The Dresher Family of Funds
Notes to Financial Statements
December 31, 1997
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Dresher Family of Funds ("The Trust") was organized as a Delaware business
trust. The Trust is registered as a diversified open-end management investment
company under the Investment Company Act of 1940 (the "1940 Act"). The Trust
currently consists of two Funds: The Dresher Classic Retirement Fund and The
Dresher Comprehensive Growth Fund. The Trust is a diversified management
investment company for purposes of the 1940 Act because its assets are
represented by securities of other investment companies or cash equivalents.
The Trust was organized on March 26, 1997 and had no investment operations
prior to October 1, 1997 other than those relating to organizational matters
including raising initial capital.
The following significant accounting policies conform to generally accepted
accounting policies for regulated investment companies.
Valuation of securities: All portfolio securities are valued as of the close
of the New York Stock Exchange (currently 4:00 p.m., Eastern time). Shares of
underlying open-end management investment companies ("mutual funds") are valued
at their respective net asset values as determined under the 1940 Act.
Federal income taxes: It is each Funds' intention to qualify as a regulated
investment company and distribute all of its taxable income. Therefore, no
provision for federal income taxes has been made.
Investment income: Distributions from net investment income and net realized
gains from underlying mutual funds are recorded on an ex-dividend date basis.
Interest income is recognized on an accrual basis.
Distributions to shareholders: All distributions to shareholders arising from
each Fund's taxable income are distributed at least once per year and are
recorded on an ex-dividend date basis.
Security transactions: Portfolio security transactions are recorded on a trade
date basis. Securities sold are valued on a specific identification basis.
Use of estimates: The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
<PAGE>
NOTE 2 - INVESTMENT TRANSACTIONS
Purchases and sales of underlying mutual funds were $3,148,016 and $205,700,
respectively for The Dresher Classic Retirement Fund and $2,475,977 and
$514,567, respectively for The Dresher Comprehensive Growth Fund.
At December 31, 1997, the cost for federal income tax purposes for The Dresher
Classic Retirement Fund was $3,103,337 and for The Dresher Comprehensive Growth
Fund was $2,058,162.
At December 31, 1997, the total unrealized appreciation and total unrealized
depreciation was $0 and $189,199, respectively for The Dresher Classic
Retirement Fund and $15,416 and $122,000, respectively for The Dresher
Comprehensive Growth Fund.
NOTE 3 - TRANSACTIONS WITH AFFILIATES
Investment Advisory Agreement
Each Funds' investments are managed by National Financial Advisors, Inc. (the
"Advisor"), pursuant to the terms of an investment advisory agreement. Under
the agreement the Advisor is entitled to receive a management fee payable
monthly based on each Funds' average daily net assets at the rate of 1.20% per
annum. The Advisor has contractually obligated itself to reduce its management
fee to keep total operating expenses for each Fund at no greater than 1.20%,
excluding extraordinary expenses until at least December 31, 1998. Unlike most
mutual funds the management fee paid to the Advisor includes transfer agency,
pricing, custody, auditing, legal, taxes, interest, expenses of non-interested
Trustees and general administrative and other operating expenses of each Fund.
For the period October 1, 1997 (date of commencement of investment operations)
to December 31, 1997, the Advisor was due $14,133 and $10,830 and waived $2,955
and $2,257 from The Dresher Classic Retirement and The Dresher Comprehensive
Growth Fund, respectively.
Administrative, Accounting and Transfer Agency Agreement
Pursuant to an administrative, accounting and transfer agency agreement between
each Fund, the Advisor and National Shareholder Services, Inc. ("NSS"), the
Advisor shall pay NSS out of its management fee a monthly fee for serving as
each Funds' administrative agent, accounting and pricing agent and transfer
agent, dividend disbursing agent, shareholder service agent, plan agent and
shareholder purchase and redemption agent. NSS is an affiliate of the Advisor.
<PAGE>
NOTE 3 - TRANSACTIONS WITH AFFILIATES (continued)
Distribution Plan
Pursuant to a distribution agreement ("12b-1 plan") between each Fund and NFA
Brokerage, Inc., an affiliate of the Advisor and NSS, NFA Brokerage, Inc.
serves as the exclusive agent for distribution of shares of each Fund. NFA
Brokerage, Inc. is entitled to receive a fee from each Fund payable monthly
at the rate of 0.25% of the average daily net assets per annum. For the period
October 1, 1997 (date of commencement of investment operations) to December 31,
1997, NFA Brokerage, Inc. received $2,955 and $2,257 from The Dresher Classic
Retirement Fund and The Dresher Comprehensive Growth Fund, respectively. These
amounts represented 0.25% on an annual basis for each Fund.
Certain trustees and officers of the Trust are also directors and officers of
the Advisor, NSS and NFA Brokerage, Inc.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees of The Dresher Family of Funds -
The Dresher Classic Retirement Fund
The Dresher Comprehensive Growth Fund
We have audited the accompanying statement of assets and liabilities,
including the schedule of portfolio investments, for The Dresher Classic
Retirement Fund and The Dresher Comprehensive Growth Fund as of December 31,
1997 and the related statements of operations, changes in net assets, and the
financial highlights for the period from October 1, 1997 (date of commencement
of investment operations) to December 31, 1997. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on the financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
investments owned as of December 31, 1997 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
The Dresher Classic Retirement Fund and The Dresher Comprehensive Growth Fund
as of December 31, 1997, and the results of their operations, their changes in
net assets and financial highlights for the period from October 1, 1997 (date
of commencement of investment operations) to December 31, 1997 in conformity
with generally accepted accounting principles.
Abington, Pennsylvania Sanville & Company
February 12, 1998 Certified Public Accountants
<PAGE>
Servicing Agents
Investment Advisor:
National Financial Advisors, Inc.
Twining Office Center
715 Twining Road, Suite 202
Dresher, Pennsylvania 19025
Administrator and Transfer Agent:
National Shareholder Services, Inc.
Twining Office Center
715 Twining Road, Suite 202
Dresher, Pennsylvania 19025
Custodian:
Firstrust Savings Bank
1931 Cottman Avenue
Philadelphia, Pennsylvania 19111
Broker-Dealer/Distributor:
NFA Brokerage Services, Inc.
Twining Office Center
715 Twining Road, Suite 218
Dresher, Pennsylvania 19025
Independent Accountants:
Sanville & Company
1514 Old York Road
Abington, Pennsylvania 19001
Legal Council:
Robert Patrylak, Esq.
30 W. Lodges Lane
Bala Cynwyd, Pennsylvania 19004
<PAGE>
To the Board of Trustees of the
The Dresher Family of Funds -
The Dresher Classic Retirement Fund
The Dresher Comprehensive Growth Fund
In planning and performing our audit of the financial statements of The
Dresher Family of Funds - The Dresher Classic Retirement Fund and the Dresher
Comprehensive Growth Fund for the period October 1, 1997, (commencement of
investment operations) to December 31, 1997, we considered its internal
control structure, including procedures for safeguarding securities, in order
to determine our auditing procedures for the purpose of expressing our opinion
on the financial statements and to comply with the requirements of Form N-SAR,
not to provide assurance on the internal control structure.
The management of The Dresher Family of Funds is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess
the expected benefits and related costs of internal control structure policies
and procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors
or irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as defined
above as of December 31, 1997.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
Abington, Pennsylvania Sanville & Company
February 12, 1998 Certified Public Accountants
<PAGE>
