[LOGO]
FORUM
FUNDS
[Pictures on left half of cover of
ledger paper and pencil, gear wheels
and a computer monitor on a pedistal.]
------------------------
SEMI-ANNUAL REPORT
------------------------
FEBRUARY 28, 1999
Daily Assets Treasury
Obligations Fund
Daily Assets
Government Fund
Daily Assets Government
Obligations Fund
Daily Assets Cash Fund
Daily Assets
Municipal Fund
<PAGE>
Table of Contents
A Message to Our Shareholders........................................ 1
FINANCIAL STATEMENTS OF FORUM FUNDS
Statements of Assets and Liabilities................................. 2
Statements of Operations............................................. 3
Statements of Changes in Net Assets.................................. 4
Financial Highlights................................................. 6
Notes to Financial Statements........................................ 8
FINANCIAL STATEMENTS OF CORE TRUST (DELAWARE)
Schedules of Investments:
Treasury Cash Portfolio......................................... 13
Government Portfolio............................................ 14
Government Cash Portfolio....................................... 15
Cash Portfolio.................................................. 16
Municipal Cash Portfolio........................................ 17
Notes to Schedules of Investments.................................... 19
Statements of Assets and Liabilities................................. 20
Statements of Operations............................................. 21
Statements of Changes in Net Assets.................................. 22
Notes to Financial Statements........................................ 23
<PAGE>
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[LOGO]
DAILY ASSETS TREASURY OBLIGATIONS FUND
DAILY ASSETS GOVERNMENT FUND
DAILY ASSETS GOVERNMENT OBLIGATIONS FUND
DAILY ASSETS CASH FUND
DAILY ASSETS MUNICIPAL FUND
SEMI-ANNUAL REPORT
FEBRUARY 28, 1999
- --------------------------------------------------------------------------------
Dear Shareholders:
The Daily Assets Funds have continued their strong expansion and grew more than
40% during the semi-annual period, surpassing $329 million in total assets. The
most significant growth - from $20.8 million to $35.4 million - has been in the
Daily Assets Municipal Fund, an increase of 69% during the period. Growth in
assets has not been the Funds' only achievement. Throughout the year, the Daily
Assets Funds have received high rankings in their respective categories by IBC
Financial Data, Inc.
In addition, IBC's Money Fund ReportTM recently listed two of our Funds as among
the top performing money funds ranked by February 1999 monthly yield. Daily
Assets Government Obligations Fund Institutional Shares was ranked #10 out of
204 funds in the Government Institutional Category, and Daily Assets Municipal
Fund Institutional Shares was ranked #10 out of 77 funds in the Tax-Free
Institutional Category. As usual, we caution you to remember that investment
return will fluctuate and past performance is no guarantee of future results.
As you must already know from news reports, the last six months have been a
period of great economic instability in world markets. The various crises in
Russia, the Far East, and Brazil contributed to the Federal Reserve Board's
decision to ease the Federal Funds' Rate three times, for a total of 75 basis
points. In response, we extended the average lives of all of our Funds to take
advantage of the falling Federal Funds' Rate. Now it appears that the crisis is
behind us, and that Federal Reserve Bank policy should remain unchanged for the
rest of the year. As always, we remain committed to providing investors with the
highest possible yield while maintaining a constant share price of $1.00.
We will continue to help you meet your financial goals. I thank you for your
continued confidence. Please feel free to call us with any questions or concerns
at (207) 879-0001.
Sincerely,
/s/ John Y. Keffer
John Y. Keffer
Chairman
ALTHOUGH THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER
SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS. AN INVESTMENT IN
THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT AGENCY, AND IS NOT ENDORSED OR GUARANTEED BY
ANY BANK OR ANY AFFILIATE OF A BANK THIS REPORT IS AUTHORIZED FOR DISTRIBUTION
ONLY TO CURRENT SHAREHOLDERS AND TO OTHERS WHO HAVE RECEIVED A COPY OF A FORUM
FUNDS PROSPECTUS.
<PAGE>
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STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
DAILY ASSETS DAILY ASSETS
TREASURY DAILY ASSETS GOVERNMENT DAILY ASSETS DAILY ASSETS
OBLIGATIONS GOVERNMENT OBLIGATIONS CASH MUNICIPAL
FUND FUND FUND FUND FUND
----------------- ---------------- ----------------- ----------------- -----------------
ASSETS:
Investments in Portfolios of Core Trust
(Delaware) at value (Notes 1 & 2)$ 104,424,008 $ 41,329,320 $ 61,922,316 $ 87,095,575 $ 35,402,949
Organization costs, net of
amortization (Note 2) 4,562 - 5,715 - -
----------------- ---------------- ----------------- ----------------- -----------------
Total assets 104,428,570 41,329,320 61,928,031 # 87,095,575 35,402,949
----------------- ---------------- ----------------- ----------------- -----------------
LIABILITIES:
Dividends payable 418,135 124,891 168,438 201,018 54,117
Accrued expenses 13,827 16,083 13,246 18,369 2,671
----------------- ---------------- ----------------- ----------------- -----------------
Total liabilities 431,962 140,974 181,684 219,387 56,788
----------------- ---------------- ----------------- ----------------- -----------------
NET ASSETS $ 103,996,608 $ 41,188,346 $ 61,746,347 $ 86,876,188 $ 35,346,161
================= ================ ================= ================= =================
COMPONENTS OF NET ASSETS:
Paid in capital $ 103,991,807 $ 41,193,425 $ 61,745,357 $ 86,876,114 $ 35,346,161
Undistributed net investment income - 19,454 - - -
Accumulated net realized gain (loss) 4,801 (24,533) 990 74 -
----------------- ---------------- ----------------- ----------------- -----------------
NET ASSETS $ 103,996,608 $ 41,188,346 $ 61,746,347 $ 86,876,188 $ 35,346,161
================= ================ ================= ================= =================
NET ASSETS BY SHARE CLASS:
Institutional Shares $ 97,629,973 $ 32,860,099 $ 40,113,293 $ 46,586,291 $ 27,211,165
Institutional Service Shares 6,346,253 7,839,811 21,622,704 40,104,767 8,061,314
Investor Shares 20,382 488,436 10,350 185,130 73,682
----------------- ---------------- ----------------- ----------------- -----------------
NET ASSETS $ 103,996,608 $ 41,188,346 $ 61,746,347 $ 86,876,188 $ 35,346,161
================= ================ ================= ================= =================
SHARES OF BENEFICIAL INTEREST:
Institutional Shares 97,625,343 32,864,511 40,112,535 46,586,291 27,211,165
Institutional Service Shares 6,346,082 7,840,407 21,622,471 40,104,697 8,061,314
Investor Shares 20,382 488,436 10,350 185,130 73,682
NET ASSET VALUE PER SHARE
(OFFERING AND REDEMPTION
PRICE PER SHARE) $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
</TABLE>
See Notes to Financial Statements. 2 FORUM FUNDS
<PAGE>
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STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
DAILY ASSETS DAILY ASSETS
TREASURY DAILY ASSETS GOVERNMENT DAILY ASSETS DAILY ASSETS
OBLIGATIONS GOVERNMENT OBLIGATIONS CASH MUNICIPAL
FUND FUND FUND FUND FUND
---------------- ---------------- ----------------- ----------------- ----------------
NET INVESTMENT INCOME
ALLOCATED FROM PORTFOLIOS
OF CORE TRUST (DELAWARE):
Interest income $ 2,836,546 $ 1,038,490 $ 944,481 $ 1,272,914 $ 443,345
Net expenses (86,160) (31,064) (23,201) (30,827) (9,644)
---------------- ---------------- ----------------- ----------------- ----------------
Net investment income allocated from
Portfolios of Core Trust (Delaware)
(Note 2) 2,750,386 1,007,426 921,280 1,242,087 433,701
---------------- ---------------- ----------------- ----------------- ----------------
EXPENSES:
Administration (Note 3)
Institutional Shares 27,918 8,393 7,413 9,646 6,930
Institutional Service Shares 1,372 1,842 1,752 2,427 151
Investor Shares 3 95 3 13 5
Transfer agent (Note 3)
Institutional Shares 33,954 14,425 13,453 15,700 12,969
Institutional Service Shares 8,784 10,790 9,650 11,179 6,330
Investor Shares 6,037 5,703 6,031 6,262 6,047
Shareholder services (Note 3)
Institutional Service Shares 6,862 9,212 8,758 12,137 757
Investor Shares 16 475 13 64 26
Distribution - Investor Shares (Note 3) 14 285 10 68 26
Accounting (Note 3) 18,000 18,000 18,000 18,000 18,000
Legal 4,120 1,464 1,239 1,530 1,005
Audit 1,231 1,231 1,231 1,231 1,230
Trustees 3,223 1,215 1,023 1,187 771
Amortization of organization costs (Note 2) 586 - 730 - -
Miscellaneous 25,644 22,533 12,621 20,546 5,923
---------------- ---------------- ----------------- ----------------- ----------------
Total expenses 137,764 95,663 81,927 99,990 60,170
Expenses reimbursed and
fees waived (Note 4) (99,694) (75,075) (59,875) (69,879) (55,524)
---------------- ---------------- ----------------- ----------------- ----------------
Net expenses 38,070 20,588 22,052 30,111 4,646
---------------- ---------------- ----------------- ----------------- ----------------
NET INVESTMENT INCOME 2,712,316 986,838 899,228 1,211,976 429,055
NET REALIZED GAIN (LOSS) ON
INVESTMENTS ALLOCATED
FROM PORTFOLIOS OF CORE
TRUST (DELAWARE) 2,302 (5,256) 1,026 117 -
---------------- ---------------- ----------------- ----------------- ----------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 2,714,618 $ 981,582 $ 900,254 $ 1,212,093 $ 429,055
================ ================ ================= ================= ================
</TABLE>
See Notes to Financial Statements. 3 FORUM FUNDS
<PAGE>
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STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1998 AND THE SIX MONTHS ENDED FEBRUARY 28, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
DAILY ASSETS DAILY ASSETS
TREASURY DAILY ASSETS GOVERNMENT
OBLIGATIONS GOVERNMENT OBLIGATIONS
FUND FUND FUND
----------------- ----------------- -----------------
NET ASSETS - August 31, 1997 (Note 1) $ - $ 44,115,791 $ -
- ------------------------------------- ----------------- ----------------- -----------------
OPERATIONS:
Net investment income 2,653,495 2,364,632 444,768
Net realized gain (loss) on investments allocated from
Portfolios of Core Trust (Delaware) 2,499 (21,087) (36)
-----------------
----------------- ----------------- -----------------
Net increase in net assets from operations 2,655,994 2,343,545 444,732
----------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income-Institutional Shares (2,599,828) (301,047) (403,077)
Net investment income-Institutional Service Shares (53,641) (2,063,585) (41,665)
Net investment income-Investor Shares (26) - (26)
----------------- ----------------- -----------------
----------------- ----------------- -----------------
Total distributions to shareholders (2,653,495) (2,364,632) (444,768)
----------------- ----------------- -----------------
CAPITAL SHARE TRANSACTIONS (at $1.00 per share):
Sale of shares-Institutional Shares 236,954,772 40,977,001 30,385,904
Sale of shares-Institutional Service Shares 8,052,682 152,633,913 14,873,215
Sale of shares-Investor Shares 10,100 - 10,100
Reinvestment of distributions-Institutional Shares - 1,072 -
Reinvestment of distributions-Institutional Service Shares 223 210,659 9,382
Reinvestment of distributions-Investor Shares 26 - 26
Redemption of shares-Institutional Shares (126,395,885) (4,883,200) (15,033,804)
Redemption of shares-Institutional Service Shares (3,605,025) (187,454,210) (12,492,821)
Redemption of shares-Investor Shares - - -
----------------- ----------------- -----------------
Net increase from capital share transactions 115,016,893 1,485,235 17,752,002
----------------- ----------------- -----------------
Net increase in net assets 115,019,392 1,464,148 17,751,966
----------------- ----------------- -----------------
NET ASSETS - August 31, 1998 115,019,392 45,579,939 17,751,966
- ---------------------------- ----------------- ----------------- -----------------
OPERATIONS:
Net investment income 2,712,316 986,838 899,228
Net realized gain (loss) on investments allocated from
Portfolios of Core Trust (Delaware) 2,302 (5,256) 1,026
----------------- ----------------- -----------------
Net increase in net assets from operations 2,714,618 981,582 900,254
----------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income-Institutional Shares (2,591,915) (809,898) (736,271)
Net investment income-Institutional Service Shares (120,145) (168,937) (162,734)
Net investment income-Investor Shares (256) (8,003) (223)
----------------- ----------------- -----------------
Total distributions to shareholders (2,712,316) (986,838) (899,228)
----------------- ----------------- -----------------
CAPITAL SHARE TRANSACTIONS (at $1.00 per share):
Sale of shares-Institutional Shares 197,653,440 12,910,551 55,547,990
Sale of shares-Institutional Service Shares 9,186,782 15,084,621 78,184,830
Sale of shares-Investor Shares 10,000 1,222,859 -
Reinvestment of distributions-Institutional Shares - 2,494 -
Reinvestment of distributions-Institutional Service Shares 1,638 141,864 32,438
Reinvestment of distributions-Investor Shares 256 7,294 223
Redemption of shares-Institutional Shares (210,586,983) (16,164,907) (30,787,555)
Redemption of shares-Institutional Service Shares (7,290,219) (16,851,365) (58,984,571)
Redemption of shares-Investor Shares - (739,748) -
----------------- ----------------- -----------------
Net increase (decrease) from capital share transactions (11,025,086) (4,386,337) 43,993,355
----------------- ----------------- -----------------
Net increase (decrease) in net assets (11,022,784) (4,391,593) 43,994,381
----------------- ----------------- -----------------
NET ASSETS - February 28, 1999 $ 103,996,608 $ 41,188,346 $ 61,746,347
- ------------------------------ ================= ================= =================
</TABLE>
See Notes to Financial Statements. 4 FORUM FUNDS
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1998 AND THE SIX MONTHS ENDED FEBRUARY 28, 1999
(Concluded) (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
DAILY ASSETS DAILY ASSETS
CASH MUNICIPAL
FUND FUND
----------------- -----------------
NET ASSETS - August 31, 1997 (Note 1) $ 12,076,074 $ -
- ------------------------------------- ----------------- -----------------
OPERATIONS:
Net investment income 986,258 122,133
Net realized gain (loss) on investments allocated from
Portfolios of Core Trust (Delaware) (43) -
----------------- -----------------
Net increase in net assets from operations 986,215 122,133
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income-Institutional Shares (363,971) (122,106)
Net investment income-Institutional Service Shares (622,260) (14)
Net investment income-Investor Shares (27) (13)
----------------- -----------------
----------------- -----------------
Total distributions to shareholders (986,258) (122,133)
----------------- -----------------
CAPITAL SHARE TRANSACTIONS (at $1.00 per share):
Sale of shares-Institutional Shares 56,561,878 29,216,681
Sale of shares-Institutional Service Shares 46,338,416 10,005
Sale of shares-Investor Shares 10,100 10,100
Reinvestment of distributions-Institutional Shares - 34,192
Reinvestment of distributions-Institutional Service Shares 32,247 14
Reinvestment of distributions-Investor Shares 26 13
Redemption of shares-Institutional Shares (28,166,064) (8,477,699)
Redemption of shares-Institutional Service Shares (53,211,560) -
Redemption of shares-Investor Shares - -
----------------- -----------------
Net increase from capital share transactions 21,565,043 20,793,306
----------------- -----------------
Net increase in net assets 21,565,000 20,793,306
----------------- -----------------
NET ASSETS - August 31, 1998 33,641,074 20,793,306
- ---------------------------- ----------------- -----------------
OPERATIONS:
Net investment income 1,211,976 429,055
Net realized gain on investments allocated from
Portfolios of Core Trust (Delaware) 117 -
----------------- -----------------
Net increase in net assets from operations 1,212,093 429,055
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income-Institutional Shares (979,550) (421,579)
Net investment income-Institutional Service Shares (231,340) (7,261)
Net investment income-Investor Shares (1,086) (215)
----------------- -----------------
Total distributions to shareholders (1,211,976) (429,055)
----------------- -----------------
CAPITAL SHARE TRANSACTIONS (at $1.00 per share):
Sale of shares-Institutional Shares 117,628,890 54,473,972
Sale of shares-Institutional Service Shares 102,544,409 11,040,037
Sale of shares-Investor Shares 254,160 63,353
Reinvestment of distributions-Institutional Shares - 24,548
Reinvestment of distributions-Institutional Service Shares 57,435 7,261
Reinvestment of distributions-Investor Shares 984 215
Redemption of shares-Institutional Shares (99,438,424) (48,060,527)
Redemption of shares-Institutional Service Shares (67,732,323) (2,996,004)
Redemption of shares-Investor Shares (80,134) -
----------------- -----------------
Net increase from capital share transactions 53,234,997 14,552,855
----------------- -----------------
Net increase in net assets 53,235,114 14,552,855
----------------- -----------------
NET ASSETS - February 28, 1999 $ 86,876,188 $ 35,346,161
- ------------------------------ ================= =================
</TABLE>
See Notes to Financial Statements. 5 FORUM FUNDS
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (Unaudited)
- --------------------------------------------------------------------------------
Following is selected data for a share of each class of each Fund outstanding
during the years or periods indicated.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Ratios to Average
Net Assets
Beginning Distributions Ending ------------------
Net Asset Net from Net Net Asset Net
Value Per Investment Investment Value Per Net Investment
Share Income Income Share Expenses Income
----- ------ ------ ----- -------- ------
DAILY ASSETS TREASURY
OBLIGATIONS FUND
Institutional Shares
Six Months Ended February 28,1999 $1.00 0.03 (0.03) $ 1.00 0.20% (c) 4.64% (c)
Period Ended August 31, 1998 (b) 1.00 0.03 (0.03) 1.00 0.20% (c) 5.41% (c)
Institutional Service Shares
Six Months Ended February 28, 1999 $1.00 0.02 (0.02) $ 1.00 0.45% (c) 4.38% (c)
Period Ended August 31, 1998 (b) 1.00 0.02 (0.02) 1.00 0.45% (c) 5.16% (c)
Investor Shares
Six Months Ended February 28, 1999 $1.00 0.02 (0.02) $ 1.00 0.81% (c) 3.99% (c)
Period Ended August 31, 1998 (b) 1.00 0.02 (0.02) 1.00 0.78% (c) 5.06% (c)
DAILY ASSETS
GOVERNMENT FUND
Institutional Shares
Six Months Ended February 28, 1999 $1.00 0.02 (0.02) $ 1.00 0.20% (c) 4.82% (c)
Period Ended August 31, 1998 (b) 1.00 0.01 (0.01) 1.00 0.20% (c) 5.26% (c)
Institutional Service Shares
Six Months Ended February 28, 1999 $1.00 0.03 (0.03) $ 1.00 0.45% (c) 4.58% (c)
Year Ended August 31, 1998 1.00 0.05 (0.05) 1.00 0.46% 4.93%
Period Ended August 31, 1997 (d) 1.00 0.02 (0.02) 1.00 0.50% (c) 4.76% (c)
Year Ended March 31, 1997 1.00 0.05 (0.05) 1.00 0.50% 4.70%
Year Ended March 31, 1996 1.00 0.05 (0.05) 1.00 0.50% 5.01%
Year Ended March 31, 1995 1.00 0.04 (0.04) 1.00 0.37% 4.45%
Year Ended March 31, 1994 1.00 0.03 (0.03) 1.00 0.33% 2.82%
Investor Shares
Period Ended February 28, 1999(b) $1.00 0.02 (0.02) $ 1.00 0.75% (c) 4.21% (c)
DAILY ASSETS GOVERNMENT
OBLIGATIONS FUND
Institutional Shares
Six Months Ended February 28, 1999 $1.00 0.03 (0.03) $ 1.00 0.20% (c) 4.97% (c)
Period Ended August 31, 1998 (b) 1.00 0.03 (0.03) 1.00 0.20% (c) 5.43% (c)
</TABLE>
<TABLE>
<S><C> <C> <C>
Ratio to
Average
Net Assets
Net Assets at -----------
Total End of Period Gross
Return (000's Omitted) Expenses (a)
------ --------------- ------------
2.33% $ 97,630 0.34% (c)
3.34% 110,561 0.47% (c)
2.21% $ 6,346 0.96% (c)
2.19% 4,448 1.53% (c)
2.03% $ 20 113.09% (c)
0.33% 10 727.11% (c)
2.42% $ 32,860 0.62% (c)
0.89% 36,095 0.69% (c)
2.29% $ 7,840 1.18% (c)
5.04% 9,485 0.91%
2.01% 44,116 0.95% (c)
4.80% 43,975 0.99%
5.18% 43,103 1.06%
4.45% 36,329 1.10%
2.83% 26,505 1.17%
1.76% $ 488 6.25% (c)
2.50% $ 40,113 0.44% (c)
3.24% 15,352 0.74% (c)
</TABLE>
(a) The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio excluding any fee waivers and expense reimbursements for the Fund and
its corresponding Portfolio.
(b) See Note 1 of Notes to Financial Statements for date of commencement of
operations.
(c) Annualized.
(d) Effective June 19, 1997, the Fund changed its fiscal year end from March 31
to August 31.
See Notes to Financial Statements. 6 FORUM FUNDS
<PAGE>
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FINANCIAL HIGHLIGHTS (Unaudited) (Concluded)
- --------------------------------------------------------------------------------
Following is selected data for a share of each class of each Fund outstanding
during the years or periods indicated.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Ratios to Average
Net Assets
Beginning Distributions Ending ------------------
Net Asset Net from Net Net Asset Net
Value Per Investment Investment Value Per Net Investment
Share Income Income Share Expenses Income
----- ------ ------ ----- -------- ------
DAILY ASSETS GOVERNMENT
OBLIGATIONS FUND (Concluded)
Institutional Service Shares
Six Months Ended February 28, 1999 $1.00 0.02 (0.02) $ 1.00 0.45% (c) 4.65% (c)
Period Ended August 31, 1998 (b) 1.00 0.02 (0.02) 1.00 0.45% (c) 5.16% (c)
Investor Shares
Six Months Ended February 28, 1999 $1.00 0.02 (0.02) $ 1.00 0.79% (c) 4.40% (c)
Period Ended August 31, 1998 (b) 1.00 0.02 (0.02) 1.00 0.78% (c) 5.06% (c)
DAILY ASSETS CASH FUND
Institutional Shares
Six Months Ended February 28, 1999 $1.00 0.03 (0.03) $ 1.00 0.20% (c) 5.08% (c)
Period Ended August 31, 1998 (b) 1.00 0.03 (0.03) 1.00 0.20% (c) 5.46% (c)
Institutional Service Shares
Six Months Ended February 28, 1999 $1.00 0.05 (0.05) $ 1.00 0.45% (c) 4.77% (c)
Year Ended August 31, 1998 1.00 0.05 (0.05) 1.00 0.46% 5.22%
Period Ended August 31, 1997 (b) 1.00 0.05 (0.05) 1.00 0.52% (c) 5.06% (c)
Investor Shares
Six Months Ended February 28, 1999 $1.00 0.02 (0.02) $ 1.00 0.86% (c) 4.27% (c)
Period Ended August 31, 1998 (b) 1.00 0.02 (0.02) 1.00 0.78% (c) 5.25% (c)
DAILY ASSETS
MUNICIPAL FUND
Institutional Shares
Six Months Ended February 28, 1999 $1.00 0.01 (0.01) $ 1.00 0.09% (c) 0.82% (c)
Period Ended August 31, 1998 (b) 1.00 0.01 (0.01) 1.00 0.12% (c) 3.16% (c)
Institutional Service Shares
Six Months Ended February 28, 1999 $1.00 0.01 (0.01) $ 1.00 0.45% (c) 2.40% (c)
Period Ended August 31, 1998 (b) 1.00 0.00 0.00 1.00 0.59% (c) 2.76% (c)
Investor Shares
Six Months Ended February 28, 1999 $1.00 0.01 (0.01) $ 1.00 0.82% (c) (0.65)%(c)
Period Ended August 31, 1998 (b) 1.00 0.01 (0.01) 1.00 0.78% (c) 2.53% (c)
</TABLE>
<TABLE>
<S><C> <C> <C>
Ratio to
Average
Net Assets
Net Assets at -----------
Total End of Period Gross
Return (000's Omitted) Expenses (a)
------ --------------- ------------
2.37% $21,623 0.94% (c)
2.22% 2,390 2.13% (c)
2.20% $ 10 142.75% (c)
0.35% 10 766.21% (c)
2.56% $ 46,586 0.41% (c)
2.70% 28,396 0.68% (c)
2.43% $40,105 0.92% (c)
5.34% 5,235 0.90%
4.70% 12,076 1.22% (c)
2.26% $ 185 29.95% (c)
0.37% 10 709.02% (c)
1.52% $ 27,211 0.66% (c)
0.59% 20,773 1.26% (c)
1.37% $ 8,061 3.38% (c)
0.20% 10 721.84% (c)
1.20% $ 74 70.05% (c)
0.18% 10 749.20% (c)
</TABLE>
(a) The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio excluding any fee waivers and expense reimbursements for the Fund and
its corresponding Portfolio.
(b) See Note 1 of Notes to Financial Statements for date of commencement of
operations.
(c) Annualized.
See Notes to Financial Statements. 7 FORUM FUNDS
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1. SUMMARY OF ORGANIZATION
Forum Funds (the "Trust") is a Delaware business trust that is registered as an
open-end management investment company under the Investment Company Act of 1940,
as amended (the "Act"). The Trust currently has twenty-two active investment
portfolios. These financial statements relate to Daily Assets Treasury
Obligations Fund, Daily Assets Government Fund, Daily Assets Government
Obligations Fund, Daily Assets Cash Fund and Daily Assets Municipal Fund
(individually, a "Fund" and, collectively, the "Funds"), each of which is
diversified. The Funds are authorized under the Trust's Trust Instrument to
issue an unlimited number of shares of beneficial interest without par value.
Each Fund currently is authorized to issue three classes of shares:
Institutional Shares, Institutional Service Shares, and Investor Shares. The
Trust commenced the offering of each class of shares as follows and no other
class of shares currently is outstanding:
<TABLE>
<S> <C>
Daily Assets Treasury Obligations Fund (Institutional Shares) January 22, 1998
Daily Assets Treasury Obligations Fund (Institutional Service Shares) April 1, 1998
Daily Assets Treasury Obligations Fund (Investor Shares) August 6, 1998
Daily Assets Government Fund (Institutional Shares) July 1, 1998
Daily Assets Government Fund (Institutional Service Shares) July 1, 1992
Daily Assets Government Fund (Investor Shares) September 29, 1998
Daily Assets Government Obligations Fund (Institutional Shares) January 30, 1998
Daily Assets Government Obligations Fund (Institutional Service Shares) March 30, 1998
Daily Assets Government Obligations Fund (Investor Shares) August 6, 1998
Daily Assets Cash Fund (Institutional Shares) March 13, 1998
Daily Assets Cash Fund (Institutional Service Shares) October 1, 1996
Daily Assets Cash Fund (Investor Shares) August 6, 1998
Daily Assets Municipal Fund (Institutional Shares) June 25, 1998
Daily Assets Municipal Fund (Institutional Service Shares) August 6, 1998
Daily Assets Municipal Fund (Investor Shares) August 6, 1998
</TABLE>
MASTER-FEEDER ARRANGEMENT - Each Fund currently seeks to achieve its investment
objective by investing all its investable assets in a separate portfolio
(individually, a "Portfolio" and, collectively, the "Portfolios") of Core Trust
(Delaware) ("Core Trust"), a registered open-end management investment company
that has the same investment objective and substantially similar investment
policies as the Fund. Accordingly, each Portfolio directly acquires securities,
and a Fund investing in the Portfolio acquires an indirect interest in those
securities. The Funds account for their investments in the Portfolios as
partnership investments. This is commonly referred to as a master-feeder
arrangement.
The financial statements of the Portfolios are included elsewhere in this report
and should be read in conjunction with the Funds' financial statements. As of
February 28, 1999, the percentage of Treasury Cash Portfolio owned by Daily
Assets Treasury Obligations Fund was 44.1%; the percentage of Government Cash
Portfolio owned by Daily Assets Government Obligations Fund was 7.0%; and the
percentage of Cash Portfolio owned by Daily Assets Cash Fund was 12.1%. Daily
Assets Government Fund and Daily Assets Municipal Fund owned substantially all
the interests of Government Portfolio and Municipal Cash Portfolio,
respectively.
8 FORUM FUNDS
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles which require management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the fiscal period. Actual results could differ from those estimates. The
following represent significant accounting policies of the Funds:
SECURITY VALUATION - Each Fund determines its net asset value per share as of
4:00 p.m., Eastern time, on each Fund business day. Each Fund records its
investment in its Portfolio at value. Valuation of securities held in the
Portfolios is discussed in the Notes to Financial Statements of Core Trust
(Delaware), included elsewhere in this report.
INVESTMENT INCOME AND EXPENSES - Each Fund records daily its pro rata share of
its Portfolio's income, expenses and realized gain and loss. In addition, each
Fund accrues its own expenses.
ORGANIZATION COSTS - The costs incurred by the Daily Assets Treasury Obligations
Fund and Daily Assets Government Obligations Fund in connection with their
organization and registration of shares have been capitalized and are being
amortized using the straight-line method over a five year period beginning with
the commencement of the Funds' operations.
CLASS SPECIFIC EXPENSES - Each share of each class of a Fund represents an
undivided, proportionate interest in the Fund. The Funds' class specific
expenses include administration fees, shareholder servicing fees, transfer agent
fees and certain other expenses as determined by the Trust's Board of Trustees
(the "Board"). Institutional Service Shares and Investor Shares incur
shareholder servicing fees and Investor Shares incur distribution fees. In
addition, there are differences between the classes of shares with respect to
the minimum investment required.
FEDERAL TAXES - Each Fund intends to qualify each year as a regulated investment
company and distribute all its taxable income. In addition, by distributing in
each calendar year substantially all its net investment income, capital gain and
certain other amounts, each Fund will not be subject to a federal excise tax.
Therefore, no federal income or excise tax provision is required.
As of February 28, 1999, Daily Assets Government Fund had a capital loss
carryover of $17,394 that may be used to offset future capital gains. This
carryover is due to expire in the year 2006.
DISTRIBUTIONS TO SHAREHOLDERS - Distributions to shareholders of net investment
income are declared daily and paid monthly. Net capital gain, if any, is
distributed to shareholders at least annually. Distributions are based on
amounts calculated in accordance with applicable income tax regulations.
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISER - The investment adviser of each Portfolio is Forum
Investment Advisors, LLC ("Forum Advisors"). Each Fund may withdraw its
investment from its respective Portfolio at any time if the Board determines
that it is in the best interest of the Fund and its shareholders to do so.
ADMINISTRATOR - The administrator of each Fund is Forum Administrative Services,
LLC ("FAdS"). For its administrative services and facilities, FAdS receives from
each Fund an administration fee at an annual rate of 0.05% of the Fund's average
daily net assets.
9 FORUM FUNDS
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES (concluded)
TRANSFER AGENT - The transfer agent and dividend disbursing agent for the Funds
is Forum Shareholder Services, LLC ("FSS"). FSS is paid a transfer agent fee at
an annual rate of 0.05%, 0.10% and 0.25% of the average daily net assets
attributable to the Institutional Shares, Institutional Service Shares and
Investor Shares of each Fund, respectively. In addition, FSS is paid $12,000 per
class, plus certain account charges.
SHAREHOLDER SERVICE AGENT - The Trust has adopted a shareholder servicing plan
with respect to Institutional Service Shares and Investor Shares under which the
Trust pays FAdS a shareholder servicing fee at an annual rate of 0.25% of the
average daily net assets of Institutional Services Shares and Investor Shares of
each Fund. FAdS may pay any or all amounts of these fees to various institutions
that provide shareholder servicing to their customers who hold Institutional
Service Shares or Investor Shares.
DISTRIBUTOR - Forum Financial Services, Inc. ("FFSI"), a registered
broker-dealer and a member of the National Association of Securities Dealers,
Inc., acts as each Fund's distributor. The Trust has adopted a plan of
distribution pursuant to Rule 12b-1 under the Act with respect to Investor
Shares under which the Trust pays FFSI a distribution fee at an annual rate of
up to 0.15% of the average daily net assets of Investor Shares of Daily Assets
Government Fund and up to 0.50% of the average daily assets of Investor Shares
of each other Fund. FFSI may pay any or all amounts of these payments to various
institutions that provide distribution or shareholder services for Investor
Shares. The plan obligates the Funds to pay FFSI as compensation for FFSI's
services and not as reimbursement for certain expenses incurred.
OTHER SERVICE PROVIDERS - Forum Accounting Services, LLC ("FAcS") provides fund
accounting services to the Funds. For its services, FAcS receives from each Fund
an annual fee of $12,000, plus $12,000 for each additional class of shares above
one.
NOTE 4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
FAdS, FSS, FFSI and FAcS have voluntarily waived a portion of their fees, and
FAdS has assumed certain expenses of the Funds. For the six month period ended
February 28, 1999, fees waived and expenses reimbursed were as follows:
<TABLE>
<S> <C> <C> <C> <C> <C>
Transfer Expenses
Administration Agent Distribution Accounting Reimbursed
Fee Fee Fee Fee by (FAdS)
-------------- ------- ------------ ---------- ----------
Daily Assets Treasury Obligations Fund
Institutional Shares $ 27,918 $ 33,297 $ - $ 17,156 $ -
Institutional Service Shares 8,234 5,050 - 842 -
Investor Shares 19 6,037 14 2 1,125
Daily Assets Government Fund
Institutional Shares 8,393 14,096 - 14,627 7,438
Institutional Service Shares 11,054 7,731 - 3,205 -
Investor Shares 570 5,692 285 168 1,816
Daily Assets Government Obligations Fund
Institutional Shares 7,413 13,292 - 14,744 -
Institutional Service Shares 10,510 3,469 - 3,251 -
Investor Shares 16 6,031 10 5 1,134
</TABLE>
10 FORUM FUNDS
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Concluded)
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES (CONCLUDED)
<TABLE>
<S> <C> <C> <C> <C> <C>
Transfer Expenses
Administration Agent Distribution Accounting Reimbursed
Fee Fee Fee Fee by (FAdS)
Daily Assets Cash Fund
Institutional Shares $ 9,646 $15,478 $ - $ 14,502 $ -
Institutional Service Shares 14,564 4,803 - 3,481 -
Investor Shares 77 6,266 68 17 977
Daily Assets Municipal Fund
Institutional Shares 6,930 12,813 - 17,613 2,092
Institutional Service Shares 908 6,330 - 374 1,261
Investor Shares 31 6,047 26 13 1,086
</TABLE>
11 FORUM FUNDS
<PAGE>
TREASURY CASH PORTFOLIO
GOVERNMENT PORTFOLIO
GOVERNMENT CASH PORTFOLIO
CASH PORTFOLIO
MUNICIPAL CASH PORTFOLIO
SEMI-ANNUAL REPORT
FEBRUARY 28, 1999
<PAGE>
- --------------------------------------------------------------------------------
TREASURY CASH PORTFOLIO
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- -------------- ------------------------------- -------------
U.S. TREASURY BILLS (A) (86.5%)
$ 47,000,000 4.58%, 4/22/99 $ 46,695,519
60,000,000 4.61%, 4/22/99 59,609,134
50,000,000 4.42%, 5/27/99 49,481,625
50,000,000 4.48%, 7/22/99 49,141,007
-------------
Total U.S. Treasury Bills 204,927,285
-------------
REPURCHASE AGREEMENTS (11.5%)
27,340,000 Donaldson Lufkin & Jenrette
Securities Corp., 4.75%, 3/1/99, to be
repurchased at $27,350,822;
collateralized by $27,897,950 U.S.
Treasury Strip, I/O, 5.70%, 5/15/09 27,340,000
-------------
CASH MANGEMENT ACCOUNTS (2.0%)
4,717,000 Dreyfus Treasury Cash
Management Fund 4,717,000
-------------
Total Investments (100.0%) $236,984,285
=============
(A) Annualized yields at time of purchase.
See Notes to Financial Statements and
Notes to Schedules of Investments. 13 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- -------------- ------------------------------- ------------
U.S. GOVERNMENT SECURITIES (96.8%)
FEDERAL FARM CREDIT BUREAU-
Discount Notes (A) (12.0%)
$ 5,000,000 4.72%, 6/16/99 $ 4,929,856
------------
FEDERAL HOME LOAN BANK-
DISCOUNT NOTES (A) (48.4%)
10,500,000 4.76%, 3/12/99 10,484,503
4,000,000 4.75%, 4/5/99 3,981,528
3,500,000 4.70%, 4/12/99 3,480,809
1,000,000 4.74%, 5/7/99 991,179
1,000,000 4.70%, 6/30/99 984,203
------------
Total Federal Home Loan Bank
Discount Notes 19,922,222
------------
STUDENT LOAN MARKETING
ASSOCIATION (B) (36.4%)
5,000,000 5.25%, 3/18/99 5,000,000
5,000,000 5.23%, 7/15/99 5,000,000
5,000,000 5.24%, 3/3/00 5,000,000
------------
Total Student Loan Marketing Association 15,000,000
------------
Total U.S. Government Securities 39,852,078
------------
CASH MANAGEMENT ACCOUNTS (3.2%)
1,324,514 Dreyfus Prime Treasury Fund 1,324,514
------------
Total Investments (100.0%) $ 41,176,592
============
(A) Annualized yields at time of purchase.
(B) Certain securities are deemed to have a maturity remaining until the next
readjustment of the interest rate, the demand period or a combination of
the longer or the earlier of the demand period or readjustment. The
interest rates shown reflect the rate in effect on on February 28, 1999.
See Notes to Financial Statements and
Notes to Schedules of Investments. 14 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
GOVERNMENT CASH PORTFOLIO
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
FACE SECURITY FACE SECURITY
AMOUNT DESCRIPTION VALUE AMOUNT DESCRIPTION VALUE
- -------------- ------------------------------- ------------- ------------- ------------------------------- --------------
U.S. GOVERNMENT SECURITIES (83.3%) SMALL BUSINESS ADMINISTRATION (CONCLUDED)
$ 884,094 Pool #503278, 5.38%, 2/25/21 $ 884,071
FEDERAL FARM CREDIT BANK (B) (2.1%) 2,066,232 Pool #503431, 5.50%, 7/25/21 2,067,484
$18,000,000 4.66%, 4/1/99 $ 18,000,000 2,565,975 Pool #503461, 5.50%, 9/25/21 2,567,389
-------------
1,721,374 Pool #503472, 5.50%, 8/25/21 1,722,288
FEDERAL HOME LOAN BANK- 726,121 Pool #503553, 5.38%, 11/25/21 724,300
DISCOUNT NOTES (A) (2.8 %) 4,986,320 Pool #503671, 5.38%, 3/25/22 4,986,320
24,000,000 4.88%, 6/30/99 23,620,867 1,803,326 Pool #503754, 5.38%, 5/25/22 1,803,326
-------------
1,060,472 Pool #503780, 5.38%, 3/25/22 1,061,803
FEDERAL NATIONAL MORTGAGE ASSOCIATION- 4,809,506 POOL #503882, 5.25%, 9/25/22 4,803,805
DISCOUNT NOTES (A) (55.6%) 4,316,225 Pool #503892, 5.38%, 7/25/22 4,326,405
25,000,000 5.09%, 3/2/99 24,996,583 5,349,791 Pool #503909, 5.25%, 10/25/22 5,346,549
25,000,000 4.69%, 3/15/99 24,955,521 2,552,325 Pool #504015, 5.25%, 1/25/23 2,551,517
20,000,000 4.93%, 4/1/99 19,917,161 4,960,268 Pool #504062, 5.25%, 2/25/23 4,960,268
50,000,000 5.09%, 4/1/99 49,789,028 5,275,522 Pool #504074, 5.25%, 2/25/23 5,275,522
50,000,000 4.95%, 4/7/99 49,753,848 2,603,490 Pool #504203, 5.38%, 7/25/13 2,612,557
50,000,000 4.81%, 4/15/99 49,706,563 1,596,920 Pool #504269, 5.38%, 5/25/15 1,600,801
20,000,000 4.92%, 5/3/99 19,833,050 1,590,811 Pool #504345, 5.38%, 5/25/18 1,590,811
40,000,000 4.96%, 5/7/99 39,643,114 6,337,248 Pool #504366, 5.13%, 2/25/24 6,331,342
--------------
25,000,000 4.90%, 5/20/99 24,736,111 Total Small Business Administration $ 79,388,827
--------------
12,094,000 4.92%, 6/9/99 11,934,427
60,000,000 4.93%, 6/10/99 59,200,417 STUDENT LOAN MARKETING ASSOCIATION (B) (7.1%)
60,000,000 4.92%, 6/10/99 59,202,100 25,000,000 5.23%, 7/15/99 25,000,000
3,888,000 4.90%, 6/10/99 3,836,406 15,000,000 4.89%, 11/5/99 15,000,000
35,000,000 4.82%, 7/9/99 34,413,556 20,000,000 5.24%, 3/3/00 20,000,000
------------- --------------
Total Federal National Mortgage Association- Total Student Loan Marketing Association 60,000,000
--------------
Discount Notes 471,917,885
-------------
Total U.S. Government Securities 677,927,579
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (2.9%) REPURCHASE AGREEMENTS (16.2%)
25,000,000 5.05%, 3/16/99 25,000,000 100,000,000 Bear, Stearns & Co., Inc., 4.86%, 3/1/99,
-------------
to be repurchased at $100,094,500;
SMALL BUSINESS ADMINISTRATION (B) (9.3%) collateralized by $105,116,269 FNMA
279,155 Pool #500545, 7.63%, 3/25/03 279,155 Strip, P/O, 7/15/27 - 11/25/27 100,000,000
689,555 Pool #501077, 6.25%, 11/25/14 691,683 37,210,000 Salomon Smith Barney, 4.85%, 3/1/99,
2,065,854 Pool #501308, 6.25%, 10/25/15 2,107,089 to be repurchased at $37,225,039;
2,213,511 Pool #501543, 6.13%, 7/25/16 2,220,803 collateralized by $42,999,230 FNMA
396,523 Pool #501628, 7.63%, 9/25/04 396,523 Strip, P/O, 12/1/24 37,210,000
--------------
1,043,917 Pool #501690, 5.88%, 12/25/16 1,051,052 Total Repurchase Agreements 137,210,000
--------------
1,496,729 Pool #501898, 6.00%, 6/25/17 1,502,341
4,203,925 Pool #502150, 5.75%, 2/25/18 4,260,568 CASH MANAGEMENT ACCOUNTS (4.0%)
231,523 Pool #502161, 5.75%, 2/25/18 231,523 34,360,000 Dreyfus Government Cash Mgmt Fund 34,360,000
--------------
2,302,976 Pool #502208, 5.75%, 2/25/18 2,333,861
1,273,267 Pool #502306, 5.75%, 2/25/18 1,295,658 Total Investments (100.0%) $849,497,579
==============
1,892,770 Pool #502613, 5.75%, 4/25/19 1,892,770
666,771 Pool #503058, 5.63%, 7/25/15 666,771 (A) Annualized yields at time of purchase.
1,529,498 Pool #503082, 5.63%, 8/25/20 1,529,498 (B) Certain securities are deemed to have a maturity remaining
1,279,285 Pool #503120, 5.63%, 11/25/20 1,279,285 until the next readjustment of the interest rate, the demand
368,050 Pool #503121, 5.63%, 8/25/15 368,050 period or a combination of the longer or the earlier of the
2,065,639 Pool #503232, 5.38%, 2/25/15 2,065,639 demand period or readjustment. The interest rates shown
reflect the rate in effect on February 28, 1999.
</TABLE>
See Notes to Financial Statements
and Notes to Schedules of Investments. 15 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
CASH PORTFOLIO
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
FACE SECURITY FACE SECURITY
AMOUNT DESCRIPTION VALUE AMOUNT DESCRIPTION VALUE
- -------------- ------------------------------- ------------ ------------- ------------------------------ --------------
U.S. GOVERNMENT SECURITIES (19.2%) COMMERCIAL PAPER (CONCLUDED)
$ 25,000,000 General Electric Capital Corp.,
FEDERAL NATIONAL MORTGAGE ASSOCIATION- 4.75%, 7/19/99 $ 24,538,195
DISCOUNT NOTES (A) (10.0%) 20,000,000 General Motors Acceptance Corp.,
$ 20,000,000 4.96%, 4/1/99 $ 19,916,817 4.80%, 3/5/99 19,989,333
10,000,000 4.92%, 6/9/99 9,868,056 30,000,000 International Lease Finance Corp.,
21,000,000 4.92%, 6/30/99 20,665,435 4.81%, 4/21/99 29,795,575
20,000,000 4.92%, 7/1/99 19,678,734 15,000,000 Merrill Lynch & Co., Inc., 4.91%,
------------
Total Federal National Mortgage Association 4/30/99 14,877,250
Discount Notes 70,129,042
------------
25,000,000 Prudential Funding Corp., 4.73%,
SMALL BUSINESS ADMINISTRATION (B) (7.0%) 7/22/99 24,530,285
180,950 Pool #500536, 6.75%, 5/25/13 184,233 30,000,000 Salomon Smith Barney Holdings,
472,227 Pool #500730, 7.63%, 2/25/04 477,788 4.82%, 4/19/99 29,803,184
949,157 Pool #501733, 5.75%, 2/25/17 962,111 27,000,000 Transamerica Financial Corp., 4.98%,
1,051,508 Pool #501989, 5.88%, 10/25/12 1,056,582 4/16/99 26,828,190
--------------
284,382 Pool #502914, 5.75%, 3/25/15 284,634 Total Commercial Paper 323,283,413
--------------
1,472,199 Pool #503121, 5.63%, 8/25/15 1,472,199 CORPORATE NOTES (B) (10.0%)
3,980,356 Pool #503429, 5.50%, 6/25/16 3,980,356 10,000,000 Bear, Stearns & Co., Inc., 5.00%,
641,494 Pool #503461, 5.50%, 9/25/21 641,855 4/6/99 10,000,000
2,675,142 Pool #503553, 5.38%, 11/25/21 2,667,785 15,000,000 Bear, Stearns & Co., Inc., 5.00%,
2,704,988 Pool #503754, 5.38%, 5/25/22 2,704,988 1/6/00 15,000,000
4,596,150 Pool #503882, 5.25%, 9/25/22 4,590,655 20,000,000 Chase Manhattan Corp., 4.97%, 1/14/00 19,989,492
5,000,901 Pool #503912, 5.25%, 10/25/22 4,997,739 5,000,000 General Motors Acceptance Corp.,
4,876,002 Pool #504015, 5.25%, 1/25/23 4,874,341 5.23%, 9/20/99 5,000,152
19,967,037 Pool #504366, 5.13%, 2/26/24 19,948,414 20,000,000 Goldman Sachs Group L.P., 5.19%,
------------ 1/7/00 20,000,000
Total Small Business Administration 48,843,680 --------------
------------ Total Corporate Notes 69,989,644
--------------
STUDENT LOAN MARKETING ASSOCIATION (B) (2.2%)
15,000,000 4.89%, 11/5/99 15,000,000 REPURCHASE AGREEMENTS (21.3%)
------------
100,000,000 Bear, Stearns & Co., Inc., 4.86%,
Total U.S. Government Securities 133,972,722 3/1/99, to be repurchased at
------------
$100,094,500; collateralized by
BANKERS ACCEPTANCES (A) (1.7%) $105,116,269 FNMA Strip, P/O,
12,000,000 Bank of America, 5.02%, 4/22/99 11,914,894 7/15/27 - 11/25/27 100,000,000
------------
48,800,000 Salomon Smith Barney, 4.85%, 3/1/99,
COMMERCIAL PAPER (46.3%) 3/1/99, to be repurchased at
30,000,000 American Express Credit Corp., $48,819,723; collateralized by
5.00%, 3/23/99 29,908,333 $56,392,184 FNMA Strip, P/O, 12/1/24 48,800,000
--------------
25,000,000 Associates Corp. of North America, Total Repurchase Agreements 148,800,000
--------------
4.80%, 5/24/99 24,720,000
15,000,000 Bank of America, 4.84%, 5/24/99 14,830,601 CASH MANAGEMENT ACCOUNTS (1.5%)
10,000,000 Bank of America, 4.79%, 8/5/99 9,791,104 10,044,000 Dreyfus Cash Mgmt. Plus Fund 10,044,000
--------------
14,200,000 Cargill Inc., 4.95%, 4/20/99 14,102,375
25,000,000 CIT Group Holdings, Inc., 4.81%, Total Investments (100%) $698,004,673
==============
4/26/99 24,812,945
25,000,000 Ford Motor Credit Corp., 4.81%, (A) Annualized yields at time of purchase.
4/9/99 24,869,729
5,000,000 Ford Motor Credit Corp., 4.81%, (B) Certain securities are deemed to have a maturity remaining
5/25/99 4,943,216 until the next readjustment of the interest rate, the demand
5,000,000 General Electric Capital Corp., period or a combination of the longer or the earlier of the
4.82%, 5/25/99 4,943,098 demand period or readjustment. The interest rates shown
reflect the rate in effect on February 28, 1999.
</TABLE>
See Notes to Financial Statements and
Notes to Schedules of Investments. 16 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
MUNICIPAL CASH PORTFOLIO
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
FACE SECURITY FACE SECURITY
AMOUNT DESCRIPTION VALUE AMOUNT DESCRIPTION VALUE
- -------------- ------------------------------- ------------ ------------- ------------------------------ -------------
MUNICIPAL SECURITIES (A) (100.0%) MUNICIPAL SECURITIES (CONTINUED)
ALABAMA (1.7%) INDIANA (5.9%)
$ 600,000 University of AL, Birmingham $ 1,000,000 Indiana HFA RV, Clarian Health
Hospital RV, Series B, 2.90% V/R, Partners-B, 3.00% V/R, 2/15/26 $ 1,000,000
10/1/07 $ 600,000 1,000,000 Indianapolis, IN, LOC, Public
------------
Improvement Bond Bank RV,
ARIZONA (2.9%) Series B, COLL, 5.00%, 2/1/00 1,018,316
-------------
1,000,000 Arizona Health Facilities Authority 2,018,316
-------------
RV, Pooled Loan Programs, FGIC
insured, 2.95% V/R, 10/1/15 1,000,000 KENTUCKY (2.9%)
------------
1,000,000 Kentucky EDA, Hospital Facilities
CALIFORNIA (5.8%) RV, Health Alliance Project,
1,000,000 Los Angeles, CA, Tax & Revenue Series C, MBIA insured, 2.95%
Anticipation Notes, 4.00%, 6/30/09 1,001,534 V/R, 1/1/22 1,000,000
-------------
1,000,000 State of California, Revenue
Anticipation Notes, 4.00%, 6/30/09 1,003,240 MARYLAND (3.5%)
------------
2,004,774 1,200,000 State of Maryland, Waste Disposal
------------
Authority Resource Recovery RV,
CONNECTICUT (2.9%) Harford County, 2.85% V/R, 1/1/08 1,200,000
-------------
1,000,000 Connecticut Health & Education
Facilities Authority RV, Yale MINNESOTA (3.4%)
University, Series T, 2.85% V/R, 1,150,000 Minneapolis, MN, Special SD,
7/1/29 1,000,000 4.38%, 2/1/00 1,164,255
------------ -------------
FLORIDA (10.2%) NEVADA (2.9%)
1,000,000 Alachua County, FL, Health 1,000,000 Clark County, NV, Airport RV,
Facilities RV, Shands Teaching MBIA insured, 2.95% V/R, 7/1/12 1,000,000
-------------
Hospital, Series B, 2.90% V/R,
12/1/26 1,000,000 NEW JERSEY (6.4%)
1,600,000 Dade County FL, Water & Sewer 1,000,000 New Jersey EDA, Water Facilities
RV, FGIC insured, 2.90% V/R, RV, Elizabethtown Water Co.
10/5/22 1,600,000 Project, Series B, AMBAC insured
900,000 Tampa, FL, Occupational License 2.70% V/R, 6/1/27 1,000,000
Tax RV, Series A, FGIC-SPI insured, 1,200,000 New Jersey Health Care Facility
2.90% V/R, 10/1/18 900,000 Funding Authority RV, Christian
------------
3,500,000 Health Series B, LOC Valley
------------
National Bank, 2.70% V/R, 7/1/28 1,200,000
-------------
GEORGIA (4.6%) 2,200,000
-------------
1,600,000 Burke County, GA, Pollution
Control RV, Oglethorpe Power NEW MEXICO (1.2%)
Corp., 2.95% V/R, 1/1/16 1,600,000 400,000 University of New Mexico RV,
------------
AMBAC insured, 2.95% V/R, 6/1/06 400,000
-------------
HAWAII (4.4%)
1,500,000 State of Hawaii, Budget & Finance NEW YORK (5.4%)
RV, Queens Health Systems, 1,750,000 New York, NY,Transit Authority RV,
Series A, 3.05% V/R, 7/1/26 1,500,000 7.50%, 1/1/20, P/R 1/01/00 @ 102 1,846,066
------------ -------------
ILLINOIS (2.9%) NORTH CAROLINA (4.6%)
1,000,000 ILLINOIS HFA RV, ADVOCATE HEALTH 1,600,000 Charlotte, NC, Airport RV, Series A,
Care, Series B, 3.05% V/R, 8/15/22 1,000,000 MBIA insured, 3.05%V/R, 7/1/17 1,600,000
------------ -------------
</TABLE>
See Notes to Financial Statements and
Notes to Schedules of Investments. 17 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
MUNICIPAL CASH PORTFOLIO
SCHEDULE OF INVESTMENTS (Concluded)
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- -------------- ------------------------------- ------------
MUNICIPAL SECURITIES (CONCLUDED)
PENNSYLVANIA (5.8%)
$ 1,000,000 Pennsylvania State HEHFA, Health
Services RV, University of
Pennsylvania, Series B, 3.05% V/R,
1/1/24 $ 1,000,000
1,000,000 York County, PA, IDA, PCR, Public
Service Gas & Electric, Series A,
MBIA insured, 2.85% V/R, 9/1/20 1,000,000
------------
2,000,000
------------
SOUTH CAROLINA (4.3%)
1,500,000 South Carolina Jobs EDA,
Orangeburg Regional Medical Center,
AMBAC insured, 2.95% V/R, 2/15/28 1,500,000
------------
TEXAS (8.7%)
1,500,000 Harris County, TX, Health Facilities
Development Corp. Hospital RV,
Memorial Hospital Systems,
Series B, 3.00% V/R, 6/1/24 1,500,000
1,000,000 State of Texas, GO Bond, Veterans
Housing Assistance, Fund I, 2.95%
V/R, 12/1/16 1,000,000
500,000 State of Texas, HEFA RV, Higher
Education Authority, MBIA insured,
3.05% V/R, 12/1/27 500,000
------------
3,000,000
------------
VIRGINIA (3.2%)
1,100,000 Fairfax County, VA, IDA RV, 2.95%
V/R, 10/1/25 1,100,000
------------
WASHINGTON (6.4%)
1,200,000 Seattle, WA, Water & Sewer RV,
2.90% V/R, 9/1/25 1,200,000
1,000,000 State of Washington, GO Bonds,
Series VR 96B, 2.85% V/R, 6/1/20 1,000,000
------------
2,200,000
------------
Total Investments (100%) $ 34,433,411
============
(A) Certain securities are deemed to have a maturity remaining until the next
readjustment of the interest rate, the demand period or a combination of
the longer or the earlier of the demand period or readjustment. The
interest rates shown reflect the rate in effect on on February 28, 1999.
See Notes to Financial Statements and
Notes to Schedules of Investments. 18 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS
- --------------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation
COLL Collateralized
EDA Economic Development Authority
FGIC Financial Guaranty Insurance Company
FGIC-SPI Financial Guaranty Insurance Company-Securities Purchase, Inc.
FNMA Federal National Mortgage Association
GO General Obligation
HEFA Higher Education Facilities Authority
HEHFA Higher Education & Health Facilities Authority
HFA Housing Finance Authority
IDA Industrial Development Authority
I/O Interest Only
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
P/O Principal Only
P/R Prerefunded
RV Revenue Bonds
SD School District
V/R Variable Rate
See Notes to Financial Statements. 19 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
TREASURY GOVERNMENT MUNICIPAL
CASH GOVERNMENT CASH CASH CASH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------- ----------------- ---------------- ---------------- -----------------
ASSETS:
Investments (Note 2):
Securities at amortized cost $ 209,644,285 $ 41,176,592 $ 712,287,579 $ 549,204,673 $ 34,433,411
Repurchase agreements at cost 27,340,000 - 137,210,000 148,800,000 -
---------------- ----------------- ---------------- ---------------- -----------------
Total investments at value 236,984,285 41,176,592 849,497,579 698,004,673 34,433,411
Cash 25,542 - 26,215 11,021 -
Interest and other receivables 13,275 161,105 2,909,456 2,465,806 969,738
Organization costs, net of
amortization (Note 2) 359 - 6,584 1,781 -
---------------- ----------------- ---------------- ---------------- -----------------
Total assets 237,023,461 41,337,697 852,439,834 700,483,281 35,403,149
---------------- ----------------- ---------------- ---------------- -----------------
LIABILITIES:
Payable to adviser (Note 3) 8,690 1,570 24,001 17,514 -
Payable to administrator (Note 3) 12,490 - 34,500 25,174 -
Accrued expenses and other liabilities 31,332 6,705 57,763 28,021 -
---------------- ----------------- ---------------- ---------------- -----------------
Total liabilities 52,512 8,275 116,264 70,709 -
---------------- ----------------- ---------------- ---------------- -----------------
NET ASSETS $ 236,970,949 $ 41,329,422 $ 852,323,570 $ 700,412,572 $ 35,403,149
================ ================= ================ ================ =================
</TABLE>
See Notes to Financial Statements. 20 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
TREASURY GOVERNMENT MUNICIPAL
CASH GOVERNMENT CASH CASH CASH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ---------------- ----------------- ---------------- ---------------
INVESTMENT INCOME:
Interest income $ 7,250,481 $ 1,042,747 $ 22,636,801 $ 16,418,890 $ 442,056
----------------- ---------------- ----------------- ---------------- ---------------
EXPENSES:
Investment advisory (Note 3) 52,045 10,395 153,101 108,425 7,096
Administration (Note 3) 74,400 10,394 218,854 154,981 7,096
Custody 35,791 4,810 105,287 74,564 3,549
Accounting (Note 3) 24,000 24,000 24,000 24,000 24,000
Legal 799 131 3,586 4,451 319
Audit 5,633 2,058 16,394 11,999 502
Trustees 234 35 681 499 19
Rating fees 22,000 - - - -
Amortization of organization costs (Note 2) 120 - 2,195 594 -
Miscellaneous 3,349 6,648 33,445 17,175 351
----------------- ---------------- ----------------- ---------------- ---------------
Total expenses 218,371 58,471 557,543 396,688 42,932
Fees waived (Note 4) - (27,287) - - (33,288)
----------------- ---------------- ----------------- ---------------- ---------------
Net expenses 218,371 31,184 557,543 396,688 9,644
----------------- ---------------- ----------------- ---------------- ---------------
NET INVESTMENT INCOME 7,032,110 1,011,563 22,079,258 16,022,202 432,412
NET REALIZED GAIN (LOSS) ON
INVESTMENTS SOLD 5,944 (5,256) 24,163 1,439 -
----------------- ---------------- ----------------- ---------------- ---------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 7,038,054 $ 1,006,307 $ 22,103,421 $ 16,023,641 $ 432,412
================= ================ ================= ================ ===============
</TABLE>
See Notes to Financial Statements. 21 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1998 AND SIX MONTHS ENDED FEBRUARY 28, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
TREASURY GOVERNMENT MUNICIPAL
CASH GOVERNMENT CASH CASH CASH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- --------------- --------------- ---------------
NET ASSETS - August 31, 1997 (Note 1) $ 71,102,520 $ 44,321,412 $ 476,768,745 $ 259,491,011 $ -
- ------------------------------------- --------------- --------------- --------------- --------------- ---------------
OPERATIONS:
Net investment income 8,001,296 2,506,524 35,098,110 23,621,908 123,211
Net realized gain (loss) on investments sold 9,432 (21,088) (43,555) 853 -
--------------- --------------- --------------- --------------- ---------------
Net increase in net assets from operation 8,010,728 2,485,436 35,054,555 23,622,761 123,211
--------------- --------------- --------------- --------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Contributions 630,794,381 145,773,098 1,930,394,761 1,309,647,918 22,849,987
Withdrawals (445,062,682) (145,816,960) (1,725,093,704) (985,420,846) (2,138,724)
--------------- --------------- --------------- --------------- ---------------
Net transactions in investors' beneficial
interests 185,731,699 (43,862) 205,301,057 324,227,072 20,711,263
--------------- --------------- --------------- --------------- ---------------
Net increase in net assets 193,742,427 2,441,574 240,355,612 347,849,833 20,834,474
--------------- --------------- --------------- --------------- ---------------
NET ASSETS - August 31, 1998 264,844,947 46,762,986 717,124,357 607,340,844 20,834,474
- ---------------------------- --------------- --------------- --------------- --------------- ---------------
OPERATIONS:
Net investment income 7,032,110 1,011,563 22,079,258 16,022,202 432,412
Net realized gain (loss) on investments sold 5,944 (5,256) 24,163 1,439 -
--------------- --------------- --------------- --------------- ---------------
Net increase in net assets from operations 7,038,054 1,006,307 22,103,421 16,023,641 432,412
--------------- --------------- --------------- --------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Contributions 534,243,807 18,098,878 1,318,006,695 823,780,074 29,401,641
Withdrawals (569,155,859) (24,538,749) (1,204,910,903) (746,731,987) (15,265,378)
--------------- --------------- --------------- --------------- ---------------
Net transactions in investors' beneficial
interests (34,912,052) (6,439,871) 113,095,792 77,048,087 14,136,263
--------------- --------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (27,873,998) (5,433,564) 135,199,213 93,071,728 14,568,675
--------------- --------------- --------------- --------------- ---------------
NET ASSETS - February 28, 1999 $ 236,970,949 $ 41,329,422 $ 852,323,570 $ 700,412,572 $ 35,403,149
- ------------------------------ =============== =============== =============== =============== ===============
</TABLE>
See Notes to Financial Statements. 22 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1. SUMMARY OF ORGANIZATION
Core Trust (Delaware) ("Core Trust") was organized as a Delaware business trust
on September 1, 1994. Core Trust, which is registered as an open-end management
investment company under the Investment Company Act of 1940, as amended (the
"Act"), currently has twenty-two separate investment portfolios. These financial
statements relate to Treasury Cash Portfolio, Government Portfolio, Government
Cash Portfolio, Cash Portfolio and Municipal Cash Portfolio (individually, a
"Portfolio" and, collectively, the "Portfolios"), each of which is diversified.
Government Portfolio commenced operations on February 21, 1996, Municipal Cash
Portfolio commenced operations on June 25, 1998 and the other Portfolios
commenced operations on September 1, 1995. Interests in the Portfolios are sold
in private placement transactions without any sales charge to institutional
clients, including open-end management investment companies
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles which require management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of increase and decrease in net assets from operations
during the fiscal period. Actual results could differ from those estimates. The
following represent significant accounting policies of the Portfolios:
SECURITY VALUATION - Each Portfolio determines its net asset value per share as
of 4:00 p.m., Eastern time, on each business day, utilizing the amortized cost
method pursuant to Rule 2a-7 under the Act. Under this method, all investments
purchased at a discount or premium are valued by accreting or amortizing,
respectively, the difference between the original purchase price and the
maturity value of the investment over the period to the investment's maturity.
REPURCHASE AGREEMENTS - Each Portfolio may invest in repurchase agreements. Each
Portfolio, through its custodian, receives delivery of the underlying
collateral, whose market value must always equal or exceed the repurchase price.
The investment adviser is responsible for determining the value of the
underlying collateral. In the event of default, a Portfolio may have
difficulties with the disposition of any such securities held as collateral.
ORGANIZATION COSTS - The costs incurred by Treasury Cash Portfolio, Government
Cash Portfolio and Cash Portfolio in connection with its organization have been
capitalized and are being amortized using the straight-line method over a five
year period beginning on the commencement of each Portfolio's operations.
FEDERAL TAXES - The Portfolios are not required to pay federal income taxes on
their net investment income and net capital gain as they are treated as
partnerships for federal income tax purposes. All interest, dividends, gain and
loss of the Portfolios are deemed to have been "passed through" to the
interestholders in proportion to their holdings in the Portfolios regardless of
whether such interest, dividends or gain have been distributed by the
Portfolios.
SECURITIES TRANSACTIONS, INTEREST INCOME AND REALIZED GAIN AND LOSS - Securities
transactions are recorded on the trade date. Interest income is accrued as
earned and realized gain and loss on investments sold are recorded on the basis
of identified cost.
23 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISER - The investment adviser of each Portfolio is Forum
Investment Advisors, LLC ("Forum Advisors"). Forum Advisors receives an advisory
fee from Treasury Cash Portfolio, Government Cash Portfolio and Cash Portfolio
based upon the total average daily net assets of those Portfolios ("Total
Portfolio Assets") that is calculated on a cumulative basis at the following
annual rates: 0.06% for the first $200 million of Total Portfolio Assets, 0.04%
of the next $300 million of Total Portfolio Assets and 0.03% of the remaining
Total Portfolio Assets. Forum Advisors receives an advisory fee from Government
Portfolio and Municipal Cash Portfolio at an annual rate of 0.05% of the average
daily net assets of each Portfolio.
ADMINISTRATOR - The administrator of each Portfolio is Forum Administrative
Services, LLC ("FAdS"). For its administrative services and facilities, FAdS
receives from each Portfolio an administration fee at an annual rate of 0.05% of
the average daily net assets of each Portfolio.
PLACEMENT AGENT - Forum Financial Services, Inc. ("FFSI"), a registered
broker-dealer and a member of the National Association of Securities Dealers,
Inc., acts as each Portfolio's placement agent but receives no fee for this
service.
OTHER SERVICE PROVIDER - Forum Accounting Services, LLC ("FAcS") serves as the
Portfolios' fund accountant and interestholder recordkeeper. For these services,
FAcS receives a fee from each Portfolio of $48,000 per year, plus additional
amounts depending on the number and type of portfolio transactions and the
number of interestholders.
NOTE 4. WAIVER OF FEES
Forum Advisors, FAdS and FAcS have voluntarily waived a portion of their fees in
certain Portfolios. For the six month period ended February 28, 1999, fees
waived were as follows:
<TABLE>
<S> <C> <C> <C>
Advisory Administration Accounting
Fee Fee Fee
---------- ---------------- ------------
Government Portfolio $ - $ 10,394 $ 16,893
Municipal Cash Portfolio 2,192 7,096 24,000
</TABLE>
24 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Concluded)
FEBRUARY 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 5. INCOME AND EXPENSE RATIOS
Income and expense ratios are presented below. During certain periods, various
fees were waived and expenses reimbursed. The ratio of Gross Expenses to Average
Net Assets reflects the expense ratio excluding waivers and reimbursements, if
any.
<TABLE>
<S> <C> <C> <C>
Ratios to Average Net Assets
-----------------------------
Net
Investment Gross
Expenses Income Expenses
-------- ------ --------
Treasury Cash Portfolio
Six Months Ended February 28, 1999 (a)................................... 0.15% 4.73% 0.15%
Year Ended August 31, 1998............................................... 0.15% 5.34% 0.17%
Year Ended August 31, 1997............................................... 0.15% 5.20% 0.18%
Year Ended August 31, 1996............................................... 0.15% 5.30% 0.20%
Government Portfolio
Six Months Ended February 28, 1999 (a)................................... 0.15% 4.87% 0.28%
Year Ended August 31, 1998............................................... 0.15% 5.26% 0.29%
Period Ended August 31, 1997 (a) (b)..................................... 0.15% 5.11% 0.36%
Year Ended March 31, 1997................................................ 0.15% 5.04% 0.33%
Period Ended March 31, 1996 (a).......................................... 0.15% 4.99% 0.60%
Government Cash Portfolio
Six Months Ended February 28, 1999 (a)................................... 0.13% 5.04% 0.13%
Year Ended August 31, 1998............................................... 0.13% 5.52% 0.13%
Year Ended August 31, 1997............................................... 0.14% 5.38% 0.14%
Year Ended August 31, 1996............................................... 0.14% 5.49% 0.14%
Cash Portfolio
Six Months Ended February 28, 1999 (a)................................... 0.13% 5.17% 0.13%
Year Ended August 31, 1998............................................... 0.13% 5.55% 0.13%
Year Ended August 31, 1997............................................... 0.15% 5.45% 0.15%
Year Ended August 31, 1996............................................... 0.15% 5.50% 0.16%
Municipal Cash Portfolio
Six Months Ended February 28, 1999 (a)................................... 0.07% 3.05% 0.30%
Period Ended August 31, 1998 (a)......................................... 0.09% 3.18% 0.61%
</TABLE>
(a) Annualized.
(b) Effective June 19, 1997, Government Portfolio changed its fiscal year end
from March 31 to August 31.
25 CORE TRUST (DELAWARE)
<PAGE>
DISTRIBUTOR
Forum Financial Services, Inc.
TRANSFER AGENT
Forum Shareholder Services, LLC
[LOGO]
FORUM FUNDS
P.O. Box 446
Portland, ME 04112
207-879-0001 (IN PORTLAND, ME)
800-94-FORUM (ELSEWHERE)
THIS REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY
TO CURRENT SHAREHOLDERS AND TO OTHERS WHO HAVE
RECEIVED A COPY OF THE FORUM FUNDS PROSPECTUS.
