FORUM SEMI-ANNUAL REPORT
FUNDS FEBRUARY 29, 2000
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................................................. 12
Government Portfolio.................................................... 13
Government Cash Portfolio............................................... 14
Cash Portfolio.......................................................... 15
Municipal Cash Portfolio................................................ 16
Notes to Schedules of Investments............................................ 18
Statements of Assets and Liabilities......................................... 19
Statements of Operations..................................................... 20
Statements of Changes in Net Assets......................................... 21
Notes to Financial Statements................................................ 22
<PAGE>
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[FORUM 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 29, 2000
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DEAR SHAREHOLDERS:
The Daily Assets Funds continue to receive high rankings in their respective
categories by IBC Financial Data, Inc.("IBC"). IBC's Money Fund ReportTM listed
three of our funds in the top ten performing money funds ranked by February 2000
monthly yield. Daily Assets Government Fund Institutional Shares was ranked #2
and Daily Assets Government Obligations Fund Institutional Shares was ranked #4
out of 224 funds in the Government Institutional Category. Daily Assets
Municipal Fund Institutional Shares was ranked #8 out of 83 funds in the
Tax-Free Institutional Category. We emphasize that investment return will
fluctuate and past performance is not a guarantee of future results.
We are extremely proud of the Funds' strong historical performance and high
rankings. Daily Assets Funds successfully utilize the efficiency of Forum's
proprietary Core and GatewayTM structure. The "Gateway" Funds are managed at the
"Core" or portfolio level. Forum Investment Advisors, LLC manages five Core
Trust (Delaware) money market portfolios with more than $3 billion in net
assets. Within this structure, our portfolio management team can focus its
resources on effectively managing five large pools of assets in order to provide
competitive yields to the Daily Assets Funds shareholders.
On behalf of the Daily Assets Funds, I thank you for your continued confidence.
We remain dedicated to providing outstanding performance and seeking to maintain
your $1.00 per share price through skilled portfolio management. Please feel
free to call us with your questions or comments at (207) 879-0001.
Sincerely,
/s/ John Y. Keffer
John Y. Keffer
Chairman
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT
$1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
FORUM FUNDS(R)
<PAGE>
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STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000 (Unaudited)
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<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
at value (Notes 1 & 2) $ 102,838,851 $ 31,589,458 $ 60,524,686 $ 78,090,779 $ 22,105,235
Organization costs, net of
amortization (Note 2) 3,390 - 4,254 - -
----------------- ----------------- ----------------- ----------------- -----------------
Total assets 102,842,241 31,589,458 60,528,940 78,090,779 22,105,235
----------------- ----------------- ----------------- ----------------- -----------------
LIABILITIES
Dividends payable 407,853 132,978 200,789 188,248 57,709
Payable to administrator - - 1,072 1,818 -
Accrued expenses 27,983 25,246 23,974 31,489 1,026
----------------- ----------------- ----------------- ----------------- -----------------
Total liabilities 435,836 158,224 225,835 221,555 58,735
----------------- ----------------- ----------------- ----------------- -----------------
NET ASSETS $ 102,406,405 $ 31,431,234 $ 60,303,105 $ 77,869,224 $ 22,046,500
================= ================= ================= ================= =================
COMPONENTS OF NET ASSETS
Paid in capital $ 102,407,167 31,435,858 60,302,076 77,869,390 22,049,895
Undistributed net investment income 2,499 21,264 - 48 -
Accumulated net realized gain (loss) (3,261) (25,888) 1,029 (214) (3,395)
----------------- ----------------- ----------------- ----------------- -----------------
NET ASSETS $ 102,406,405 $ 31,431,234 $ 60,303,105 $ 77,869,224 $ 22,046,500
================= ================= ================= ================= =================
NET ASSETS BY SHARE CLASS
Institutional Shares $ 95,059,979 $ 27,056,060 $ 34,531,837 $ 34,549,772 $ 20,060,484
Institutional Service Shares 7,314,655 3,543,095 25,393,540 42,477,749 1,898,066
Investor Shares 31,771 832,079 377,728 841,703 87,950
----------------- ----------------- ----------------- ----------------- -----------------
NET ASSETS $ 102,406,405 $ 31,431,234 $ 60,303,105 $ 77,869,224 $ 22,046,500
================= ================= ================= ================= =================
SHARES OF BENEFICIAL INTEREST
Institutional Shares 95,060,622 27,060,244 34,531,058 34,549,893 20,063,492
Institutional Service Shares 7,314,772 3,543,649 25,393,290 42,477,794 1,898,446
Investor Shares 31,773 832,145 377,728 841,703 87,959
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[R]
<PAGE>
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STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 (Unaudited)
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<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
Interest income $ 2,636,082 $ 964,587 $ 1,623,124 $ 2,507,648 $ 390,389
Net expenses (64,889) (25,874) (34,262) (50,853) -
----------------- ----------------- -------------- -------------- ---------------
Net investment income allocated from
Portfolios (Note 2) 2,571,193 938,713 1,588,862 2,456,795 390,389
----------------- ----------------- -------------- -------------- ---------------
EXPENSES
Administration (Note 3)
InstitutionaloSharesrvice Shares 21,944 7,182 8,023 9,199 5,033
Institutional Service Shares 2,665 1,187 6,439 12,527 527
Investor Shares 8 207 40 134 21
Transfer agent (Note 3)
Institutional Shares 28,180 13,262 14,125 15,339 11,115
Institutional Service Shares 11,397 9,010 19,216 31,941 7,118
Investor Shares 6,094 7,375 6,223 7,030 6,150
Shareholder services (Note 3)
Institutional Shares - - - - -
Institutional Service Shares 13,326 5,935 32,197 62,640 2,636
Investor Shares 40 1,036 200 668 106
Distribution - Investor Shares (Note 3) 47 622 240 802 127
Accounting (Note 3) 18,000 18,000 18,000 18,000 18,000
Legal 3,715 1,534 2,171 4,150 974
Audit 2,811 2,812 2,812 2,813 2,815
Trustees 2,805 1,010 1,670 2,615 644
Compliance 4,119 11,270 4,281 5,153 3,865
Amortization of organization costs (Note 2) 586 - 730 - -
Miscellaneous 3,202 952 1,163 1,743 588
----------------- ----------------- -------------- -------------- ---------------
Total expenses 118,939 81,394 117,530 174,754 59,719
Expenses reimbursed and
fees waived (Note 4) (71,816) (64,556) (60,985) (73,359) (54,580)
----------------- ----------------- -------------- -------------- ---------------
Net expenses 47,123 16,838 56,545 101,395 5,139
----------------- ----------------- -------------- -------------- ---------------
NET INVESTMENT INCOME 2,524,070 921,875 1,532,317 2,355,400 385,250
----------------- ----------------- -------------- -------------- ---------------
NET REALIZED GAIN ON
INVESTMENTS ALLOCATED
FROM PORTFOLIOS (Note 2)
2,420 68 45 - -
----------------- ----------------- -------------- -------------- ---------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 2,526,490 $ 921,943 $ 1,532,362 $ 2,355,400 $ 385,250
================= ================= ============== ============== ===============
</TABLE>
See Notes to Financial Statements. 3 FORUM FUNDS[R]
<PAGE>
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STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999 AND THE SIX MONTHS ENDED FEBRUARY 29, 2000
(Unaudited)
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<TABLE>
<S> <C> <C> <C>
DAILY ASSETS DAILY ASSETS
TREASURY DAILY ASSETS GOVERNMENT
OBLIGATIONS GOVERNMENT OBLIGATIONS
FUND FUND FUND
---------------- ---------------- ---------------
NET ASSETS - August 31, 1998 $ 115,019,392 $ 45,579,939 $ 17,751,966
---------------- ---------------- ---------------
OPERATIONS
Net investment income 4,787,343 1,915,349 2,111,004
Net realized gain (loss) on investments allocated from Portfolios (5,681) (5,049) 1,020
---------------- ---------------- ---------------
Net increase in net assets resulting from operations 4,781,662 1,910,300 2,112,024
---------------- ---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income-Institutional Shares (4,483,542) (1,574,915) (1,495,037)
Net investment income-Institutional Service Shares (300,597) (318,474) (615,530)
Net investment income-Investor Shares (705) (20,150) (437)
Net realized gain (loss) on investments-Institutional Shares (2,437) - -
Net realized gain (loss) on investments-Investor Shares (62) (1,810) -
---------------- ---------------- ---------------
Total distributions to shareholders (4,787,343) (1,915,349) (2,111,004)
---------------- ---------------- ---------------
CAPITAL SHARE TRANSACTIONS (at $1.00 per share)
Sale of shares-Institutional Shares 369,559,185 30,771,529 78,503,113
Sale of shares-Institutional Service Shares 40,662,099 24,286,868 183,158,610
Sale of shares-Investor Shares 26,758 2,002,096 -
Reinvestment of distributions-Institutional Shares - 4,597 -
Reinvestment of distributions-Institutional Service Shares 98,927 266,959 358,305
Reinvestment of distributions-Investor Shares 706 18,772 437
Redemption of shares-Institutional Shares (393,819,939) (38,157,589) (67,229,404)
Redemption of shares-Institutional Service Shares (26,839,236) (28,262,648) (163,578,891)
Redemption of shares-Investor Shares (5,000) (1,317,421) -
---------------- ---------------- ---------------
Net increase (decrease) from capital share transactions (10,316,500) (10,386,837) 31,212,170
---------------- ---------------- ---------------
Net increase (decrease) in net assets (10,322,181) (10,391,886) 31,213,190
---------------- ---------------- ---------------
NET ASSETS -August 31, 1999 (Including (A)) 104,697,211 35,188,053 48,965,156
---------------- ---------------- ---------------
OPERATIONS
Net investment income 2,524,070 921,875 1,532,317
Net realized gain on investments allocated from Portfolios 2,420 68 45
---------------- ---------------- ---------------
Net increase in net assets resulting from operations 2,526,490 921,943 1,532,362
---------------- ---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income-Institutional Shares (2,265,863) (779,536) (866,244)
Net investment income-Institutional Service Shares (257,502) (122,109) (662,202)
Net investment income-Investor Shares (705) (20,230) (3,871)
---------------- ---------------- ---------------
Total distributions to shareholders (2,524,070) (921,875) (1,532,317)
---------------- ---------------- ---------------
CAPITAL SHARE TRANSACTIONS (at $1.00 per share)
Sale of shares-Institutional Shares 158,828,697 17,163,422 31,046,699
Sale of shares-Institutional Service Shares 34,832,943 10,740,992 118,540,391
Sale of shares-Investor Shares 2,078 1,163,518 552,166
Reinvestment of distributions-Institutional Shares - 1,710 -
Reinvestment of distributions-Institutional Service Shares 168,558 94,846 455,093
Reinvestment of distributions-Investor Shares 705 20,237 3,871
Redemption of shares-Institutional Shares (150,066,208) (18,818,297) (23,141,450)
Redemption of shares-Institutional Service Shares (46,056,399) (13,068,155) (115,929,994)
Redemption of shares-Investor Shares (3,600) (1,055,160) (188,872)
---------------- ---------------- ---------------
Net increase (decrease) from capital share transactions (2,293,226) (3,756,887) 11,337,904
---------------- ---------------- ---------------
Net increase (decrease) in net assets (2,290,806) (3,756,819) 11,337,949
---------------- ---------------- ---------------
NET ASSETS - February 29, 2000 (Including (B)) $ 102,406,405 $ 31,431,234 $ 60,303,105
================ ================ ===============
(A) Accumulated undistributed net investment income, August 31, 1999 $ 2,499 $ 21,264 $ -
================ ================ ===============
(B) Accumulated undistributed net investment income, February 29, 2000 $ 2,499 $ 21,264 $ -
================ ================ ===============
</TABLE>
See Notes to Financial Statements. 4 FORUM FUNDS[R]
<PAGE>
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STATEMENTS OF CHANGES IN NET ASSETS (Concluded)
FOR THE YEAR ENDED AUGUST 31, 1999 AND THE SIX MONTHS ENDED FEBRUARY 29, 2000
(Unaudited)
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<TABLE>
<S> <C> <C>
DAILY ASSETS DAILY ASSETS
CASH MUNICIPAL
FUND FUND
---------------- ----------------
NET ASSETS - August 31, 1998 (Note 1) $ 33,641,074 $ 20,793,306
---------------- ----------------
OPERATIONS
Net investment income 3,420,261 875,578
Net realized (loss) on investments allocated from Portfolios (123) (3,395)
---------------- ----------------
Net increase in net assets resulting from operations 3,420,138 872,183
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income-Institutional Shares (1,992,738) (805,513)
Net investment income-Institutional Service Shares (1,418,542) (68,996)
Net investment income-Investor Shares (8,933) (1,069)
Net realized gain (loss) on investments-Institutional Service Shares (48) -
---------------- ----------------
Total distributions to shareholders (3,420,261) (875,578)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS (at $1.00 per share)
Sale of shares-Institutional Shares 229,434,759 105,434,496
Sale of shares-Institutional Service Shares 409,749,879 22,597,633
Sale of shares-Investor 587,671 64,674
Reinvestment of distributions-Institutional Shares 59,332 48,954
Reinvestment of distributions-Institutional Service Shares 868,037 68,997
Reinvestment of distributions-Investor 6,493 1,067
Redemption of shares-Institutional Shares (218,964,209) (105,629,785)
Redemption of shares-Institutional Service Shares (357,192,027) (19,381,291)
Redemption of shares-Investor Shares (146,154) -
---------------- ----------------
Net increase from capital share transactions 64,403,781 3,204,745
---------------- ----------------
Net increase in net assets 64,403,658 3,201,350
---------------- ----------------
NET ASSETS - August 31, 1999 (Including (A)) 98,044,732 23,994,656
---------------- ----------------
OPERATIONS
Net investment income 2,355,400 385,250
Net realized gain (loss) on investments allocated from Portfolios - -
---------------- ----------------
Net increase in net assets resulting from operations 2,355,400 385,250
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income-Institutional Shares (1,020,472) (352,116)
Net investment income-Institutional Service Shares (1,321,962) (32,031)
Net investment income-Investor Shares (12,966) (1,103)
---------------- ----------------
Total distributions to shareholders (2,355,400) (385,250)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS (at $1.00 per share)
Sale of shares-Institutional Shares 116,439,943 34,620,063
Sale of shares-Institutional Service Shares 245,076,822 8,915,602
Sale of shares-Investor 466,544 11,000
Reinvestment of distributions-Institutional Shares 134,577 20,731
Reinvestment of distributions-Institutional Service Shares 973,814 32,031
Reinvestment of distributions-Investor 9,168 1,103
Redemption of shares-Institutional Shares (120,950,324) (35,204,141)
Redemption of shares-Institutional Service Shares (262,233,915) (10,344,545)
Redemption of shares-Investor Shares (92,137) -
---------------- ----------------
Net decrease from capital share transactions (20,175,508) (1,948,156)
---------------- ----------------
Net decrease in net assets (20,175,508) (1,948,156)
---------------- ----------------
NET ASSETS - February 29, 2000 (Including (B)) $ 77,869,224 $ 22,046,500
================ ================
(A) Accumulated undistributed net investment income, August 31, 1999 $ 48 $ -
================ ================
(B) Accumulated undistributed net investment income, February 29, 2000 $ 48 $ -
================ ================
</TABLE>
See Notes to Financial Statements. 5 FORUM FUNDS[R]
<PAGE>
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FINANCIAL HIGHLIGHTS (Unaudited)
- --------------------------------------------------------------------------------
These financial highlights reflect 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
DISTRIBUTIONS NET ASSETS
BEGINNING NET FROM NET ENDING NET
NET ASSET INVESTMENT INVESTMENT NET ASSET NET INVESTMENT
VALUE INCOME INCOME VALUE EXPENSES INCOME
DAILY ASSETS TREASURY
OBLIGATIONS FUND
Institutional Shares
Six Months Ended February 29, 2000 $1.00 0.03 (0.03) $ 1.00 0.20%(c) 5.16% (c)
Year Ended August 31, 1999 1.00 0.05 (0.05) 1.00 0.20% 4.58%
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 29, 2000 1.00 0.03 (0.03) 1.00 0.45%(c) 4.83% (c)
Year Ended August 31, 1999 1.00 0.04 (0.04) 1.00 0.45% 4.34%
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 29, 2000 1.00 0.02 (0.02) 1.00 0.90%(c) 4.45% (c)
Year Ended August 31, 1999 1.00 0.04 (0.04) 1.00 0.87% 3.87%
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 29, 2000 1.00 0.03 (0.03) 1.00 0.20%(c) 5.43% (c)
Year Ended August 31, 1999 1.00 0.05 (0.05) 1.00 0.20% 4.81%
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 29, 2000 1.00 0.03 (0.03) 1.00 0.45%(c) 5.14% (c)
Year Ended August 31, 1999 1.00 0.05 (0.05) 1.00 0.45% 4.57%
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%
Investor Shares
Six Months Ended February 29, 2000 1.00 0.02 (0.02) 1.00 0.75%(c) 4.88% (c)
Period Ended August 31, 1999 (b) 1.00 0.04 (0.04) 1.00 0.75%(c) 4.25% (c)
DAILY ASSETS GOVERNMENT
OBLIGATIONS FUND
Institutional Shares
Six Months Ended February 29, 2000 1.00 0.03 (0.03) 1.00 0.20%(c) 5.40% (c)
Year Ended August 31, 1999 1.00 0.05 (0.05) 1.00 0.20% 4.85%
Period Ended August 31, 1998 (b) 1.00 0.03 (0.03) 1.00 0.20%(c) 5.43% (c)
Institutional Service Shares
Six Months Ended February 29, 2000 1.00 0.03 (0.03) 1.00 0.45%(c) 5.14% (c)
Year Ended August 31, 1999 1.00 0.05 (0.05) 1.00 0.45% 4.54%
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 29, 2000 1.00 0.02 (0.02) 1.00 0.90%(c) 4.85% (c)
Year Ended August 31, 1999 1.00 0.04 (0.04) 1.00 0.84% 4.24%
Period Ended August 31, 1998 (b) 1.00 0.02 (0.02) 1.00 0.78%(c) 5.06% (c)
</TABLE>
RATIO TO
AVERAGE
NET ASSETS AT NET ASSETS
TOTAL END OF PERIOD GROSSS
RETURN (000'S OMITTED) EXPENSES
DAILY ASSETS TREASURY
OBLIGATIONS FUND
Institutional Shares
Six Months Ended February 29, 2000 2.59% $ 95,060 0.31% (c)
Year Ended August 31, 1999 4.67% 86,295 0.32%
Period Ended August 31, 1998 (b) 3.34% 110,561 0.47% (c)
Institutional Service Shares
Six Months Ended February 29, 2000 2.47% 7,315 0.74% (c)
Year Ended August 31, 1999 4.46% 18,369 0.89%
Period Ended August 31, 1998 (b) 2.19% 4,448 1.53% (c)
Investor Shares
Six Months Ended February 29, 2000 2.24% 32 43.12% (c)
Year Ended August 31, 1999 4.00% 33 100.05%
Period Ended August 31, 1998 (b) 0.33% 10 727.11% (c)
DAILY ASSETS
GOVERNMENT FUND
Institutional Shares
Six Months Ended February 29, 2000 2.73% 27,056 0.46% (c)
Year Ended August 31, 1999 4.92% 28,709 0.61%
Period Ended August 31, 1998 (b) 0.89% 36,095 0.69% (c)
Institutional Service Shares
Six Months Ended February 29, 2000 2.60% 3,51.15% (c)
Year Ended August 31, 1999 4.66% 5,775 1.15%
Year Ended August 31, 1998 5.04% 9,485 0.91%
Period Ended August 31, 1997 (d) 2.01% 44,116 0.95% (c)
Year Ended March 31, 1997 4.80% 43,975 0.99%
Year Ended March 31, 1996 5.18% 43,103 1.06%
Year Ended March 31, 1995 4.45% 36,329 1.10%
Investor Shares
Six Months Ended February 29, 2000 2.45% 832 3.25% (c)
Period Ended August 31, 1999 (b) 4.43% 703 5.45% (c)
DAILY ASSETS GOVERNMENT
OBLIGATIONS FUND
Institutional Shares
Six Months Ended February 29, 2000 2.71% 34,532 0.36% (c)
Year Ended August 31, 1999 4.98% 26,627 0.40%
Period Ended August 31, 1998 (b) 3.24% 15,352 0.74% (c)
Institutional Service Shares
Six Months Ended February 29, 2000 2.58% 25,394 0.68% (c)
Year Ended August 31, 1999 4.72% 22,328 0.80%
Period Ended August 31, 1998 (b) 2.22% 2,390 2.13% (c)
Investor Shares
Six Months Ended February 29, 2000 2.36% 378 9.35% (c)
Year Ended August 31, 1999 4.32% 11 148.94%
Period Ended August 31, 1998 (b) 0.35% 10 766.21% (c)
See Notes to Financial Statements. 6 FORUM FUNDS[R]
<PAGE>
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FINANCIAL HIGHLIGHTS (Concluded) (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE
DISTRIBUTIONS NET ASSETS
BEGINNING NET FROM NET ENDING NET
NET ASSET INVESTMENT INVESTMENT NET ASSET NET INVESTMENT
VALUE INCOME INCOME VALUE EXPENSES INCOME
DAILY ASSETS CASH FUND
Institutional Shares
Six Months Ended February 29, 2000 $ 1.00 0.03 (0.03) $ 1.00 0.20%(c) 5.55% (c)
Year Ended August 31, 1999 1.00 0.05 (0.05) 1.00 0.20% 4.93%
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 29, 2000 1.00 0.03 (0.03) 1.00 0.45%(c) 5.28% (c)
Year Ended August 31, 1999 1.00 0.05 (0.05) 1.00 0.45% 4.59%
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 29, 2000 1.00 0.02 (0.02) 1.00 0.90%(c) 4.85% (c)
Year Ended August 31, 1999 1.00 0.04 (0.04) 1.00 0.90% 4.13%
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 29, 2000 1.00 0.02 (0.02) 1.00 0.00%(c) 3.50% (c)
Year Ended August 31, 1999 1.00 0.03 (0.03) 1.00 0.05% 3.10%
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 29, 2000 1.00 0.02 (0.02) 1.00 0.45%(c) 3.04% (c)
Year Ended August 31, 1999 1.00 0.03 (0.03) 1.00 0.45% 2.66%
Period Ended August 31, 1998 (b) 1.00 - 1.00 0.59%(c) 2.76% (c)
Investor Shares
Six Months Ended February 29, 2000 1.00 0.01 (0.01) 1.00 0.90%(c) 2.61% (c)
Year Ended August 31, 1999 1.00 0.02 (0.02) 1.00 0.88% 2.23%
Period Ended August 31, 1998 (b) 1.00 0.01 (0.01) 1.00 0.78%(c) 2.53% (c)
</TABLE>
RATIO TO
AVERAGE
NET ASSETS AT NET ASSETS
TOTAL END OF PERIOD GROSSS
RETURN (000'S OMITTED) EXPENSES
DAILY ASSETS CASH FUND
Institutional Shares
Six Months Ended February 29, 2000 $ 2.79% $ 34,550 0.32% (c)
Year Ended August 31, 1999 5.07% 38,926 0.35%
Period Ended August 31, 1998 (b) 2.70% 28,396 0.68% (c)
Institutional Service Shares
Six Months Ended February 29, 2000 2.66% 42,478 0.63% (c)
Year Ended August 31, 1999 4.81% 58,661 0.70%
Year Ended August 31, 1998 5.34% 5,235 0.90%
Period Ended August 31, 1997 (b) 4.70% 12,076 1.22% (c)
Investor Shares
Six Months Ended February 29, 2000 2.43% 842 3.65% (c)
Year Ended August 31, 1999 4.40% 458 9.24%
Period Ended August 31, 1998 (b) 0.37% 10 709.02% (c)
DAILY ASSETS
MUNICIPAL FUND
Institutional Shares
Six Months Ended February 29, 2000 1.76% 20,060 0.38% (c)
Year Ended August 31, 1999 3.15% 20,624 0.72%
Period Ended August 31, 1998 (b) 0.59% 20,773 1.26% (c)
Institutional Service Shares
Six Months Ended February 29, 2000 1.53% 1,898 1.34% (c)
Year Ended August 31, 1999 2.77% 3,295 1.21%
Period Ended August 31, 1998 (b) 0.20% 10 721.84% (c)
Investor Shares
Six Months Ended February 29, 2000 1.30% 88 16.78% (c)
Year Ended August 31, 1999 2.36% 76 33.51%
Period Ended August 31, 1998 (b) 0.18% 10 749.20% (c)
(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. 7 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1. SUMMARY OF ORGANIZATION
Forum Funds(R) (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 nineteen 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) August 6, 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 policies as the
Fund. Accordingly, each Portfolio directly acquires securities, and a Fund
investing in the Portfolio acquires an indirect interest in those securities.
Each Fund accounts for its investment in a Portfolio as a partnership
investment, and records daily its share of the Portfolio's income, expenses and
realized and unrealized gain and loss. In addition, each Fund incurs its own
expenses. Each Fund may withdraw its investment from its corresponding Portfolio
at any time if the Trust's Board of Trustees (the "Board") determines that it is
in the best interest of the Fund and its shareholders to do so. 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 29, 2000, Daily Assets Government Fund owned substantially all the
interests of Government Portfolio; the percentage of Treasury Cash Portfolio
owned by Daily Assets Treasury Obligations Fund was 24.4%; the percentage of
Government Cash Portfolio owned by Daily Assets Government Obligations Fund was
7.9%; the percentage of Cash Portfolio owned by Daily Assets Cash Fund was 4.2%;
and Daily Assets Municipal Fund owned substantially all the interests of
Municipal Cash Portfolio.
8 FORUM FUNDS(R)
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
FEBRUARY 29, 2000 (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, disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets during the fiscal
period. Actual results could differ from those estimates. The following
summarizes the 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. The valuation of securities held in the
Portfolios is discussed in the Notes to Financial Statements of Core Trust
(Delaware), which are included elsewhere in this report.
INVESTMENT INCOME AND EXPENSES - Each Fund records daily its pro rata share of
each 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.
Institutional 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 continue to qualify each year as a
regulated investment company and distribute all its net investment 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 29, 2000, Daily Assets Government Fund had capital loss
carryovers available to offset future capital gains, in the amounts of $19,024,
expiring in August 2006, and $986, expiring in August 2007.
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, which
may differ from generally accepted accounting principles. These differences are
due primarily to differing treatments of income and gain on various investment
securities held by each Fund or Portfolio, timing differences and differing
characterizations of distributions made by the Fund.
9 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
FEBRUARY 29, 2000 (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 the Funds is Forum Administrative Services,
LLC ("FAdS"). For its administrative services and facilities, FAdS receives from
each Fund a fee at an annual rate of 0.05% of the average daily net assets
attributable to the Institutional Shares, Institutional Service Shares and
Investor Shares of the Fund. In addition, certain legal expenses are charged to
the Funds by FAdS.
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, plus certain account and additional
Fund 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 attributable to the Institutional Service Shares and
Investor Shares of each Fund. FAdS may pay any or all amounts of these payments
to various institutions that provide shareholder servicing to their customers
who hold Institutional Service Shares or Investor Shares.
DISTRIBUTOR - Forum Fund Services, LLC ("FFS"), 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 Distribution Plan pursuant to Rule
12b-1 under the Act with respect to the Investor Shares under which the Trust
may pay FFS a distribution fee at an annual rate of up to 0.15% of the average
daily net assets of the Investor Share class of Daily Assets Government Fund and
up to 0.50% of the average daily net assets of the Investor Share class of each
other Fund. The Board's approval of the plan, however, is subject to the
condition that FFS would not charge a distribution fee of more than 0.30% of the
average daily net assets of each Fund (except Daily Assets Government Fund)
without seeking Board approval. FFS 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 FFS as compensation for
FFS'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 accounting services, FAcS receives
from each Fund an annual fee of $36,000, plus certain additional charges.
10 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Concluded)
FEBRUARY 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
FAdS, FSS, FFS and FAcS have voluntarily waived a portion of their fees and FAdS
has also assumed certain expenses of the Funds. For the six month period ended
February 29, 2000, fees waived and expenses reimbursed were as follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Administration Transfer Shareholder 12b-1 Accounting Reimbursed
Fee Agent Fee Service Fee Fee Fee Expenses Total
Daily Assets Treasury Obligations Fund $24,617 $16,643 $8,491 $47 $18,000 $4,018 $71,816
Institutional Service Shares 2,665 676 8,451 -
Institutional Shares 21,944 11,895 - -
Investor Shares 8 4,072 40 47
Daily Assets Government Fund 8,576 23,274 6,971 622 18,000 7,113 64,556
Institutional Service Shares 1,187 6,817 5,935 -
Institutional Shares 7,182 11,200 - -
Investor Shares 207 5,257 1,036 622
Daily Assets Government Obligations Fund 14,502 11,296 14,938 240 18,000 2,009 60,985
Institutional Service Shares 6,439 - 14,738 -
Institutional Shares 8,023 7,082 - -
Investor Shares 40 4,214 200 240
Daily Assets Cash Fund 21,860 10,498 21,381 747 18,000 873 73,359
Institutional Service Shares 12,527 - 20,781 -
Institutional Shares 9,199 5,603 - -
Investor Shares 134 4,895 600 747
Daily Assets Municipal Fund 5,581 16,477 2,392 127 18,000 12,003 54,580
Institutional Service Shares 527 4,836 2,286 -
Institutional Shares 5,033 7,507 - -
Investor Shares 21 4,134 106 127
</TABLE>
11 FORUM FUNDS[R]
<PAGE>
SCHEDULE OF INVESTMENTS - TREASURY CASH PORTFOLIO
FEBRUARY 29, 2000 (Unaudited)
- --------------------------------------------------------------------------
Face Security
Amount Description Value
- ---------------- --------------------------------- ---------------
U.S. Treasury Bills (A) (73.3%)
$ 310,000,000 5.85%, 4/27/00 $ 307,207,159
---------------
Repurchase Agreements (17.0%)
20,960,000 BA Securities, Inc., 5.66%, 3/1/00, to
be repurchased at $20,963,295;
collateralized by various U.S.
Treasury Notes. 20,960,000
50,000,000 Donaldson, Lufkin & Jenrette Securities
Corp., 5.75%, 3/1/00, to be repurchased
at $50,007,986; collateralized by
various U.S. Treasury Obligations. 50,000,000
---------------
Total Repurchase Agreements 70,960,000
---------------
Cash Management Accounts (9.7%)
20,364,000 Dreyfus Treasury Prime Cash
Management Fund, "A", 5.33% yield 20,364,000
20,350,000 Dreyfus Treasury Cash Management
Fund, 5.38% yield 20,350,000
---------------
Total Cash Management Accounts 40,714,000
---------------
Total Investments (100.0%) at Amortized Cost $ 418,881,159
===============
See Notes to Financial Statements
and Notes To Schedule of Investments. 12 FORUM FUNDS[R]
<PAGE>
- -----------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - GOVERNMENT PORTFOLIO
FEBRUARY 29, 2000 (Unaudited)
- -----------------------------------------------------------------------
Face Security
Amount Description Value
- -------------- --------------------------------- --------------
U.S. Government Securities (96.5%)
Federal Home Loan Bank (B) (15.9%)
$ 5,000,000 6.28%, 4/7/00 $ 5,000,000
--------------
Federal Home Loan Bank - Discount Notes (A) (23.5%)
1,000,000 5.76%, 3/1/00 996,704
1,000,000 5.76%, 3/1/00 1,000,000
1,400,000 5.80%, 3/1/00 1,391,870
2,500,000 5.66%, 3/15/00 2,494,682
1,500,000 5.76%, 3/22/00 1,495,074
--------------
Total Federal Home Loan Bank - Discount Notes 7,378,330
--------------
Student Loan Marketing Association (B) (47.6%)
5,000,000 5.10%, 3/3/00 5,000,000
10,000,000 6.27%, 2/21/01 10,000,000
--------------
Total Student Loan Marketing Association 15,000,000
--------------
Student Loan Marketing Association - Discount
Notes (A) (9.5%)
3,000,000 5.58%, 3/27/00 2,987,628
--------------
Total U.S. Government Securities 30,365,958
--------------
Cash Management Accounts (3.5%)
1,085,955 Dreyfus Treasury Prime Cash
Management Fund, "A", 5.33% yield 1,085,955
--------------
Total Investments (100.0%) at Amortized Cost $ 31,451,913
==============
See Notes to Financial Statements
and Notes To Schedule of Investments. 13 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - GOVERNMENT CASH PORTFOLIO
FEBRUARY 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
Face Security Face Security
Amount Description Value Amount Description Value
- --------------- ------------------------------- ------------- ------------ ------------------------------ --------------
U.S. Government Securities (84.1%) Small Business Administration (concluded)
Federal Home Loan Bank (B) (2.0%) $ 3,203,184 Pool #503882, 6.00%, 9/25/22 $ 3,199,678
$ 15,000,000 6.28%, 4/7/00 $ 15,000,000 2,052,842 Pool #503892, 6.13%, 7/25/22 2,057,062
-------------
4,592,539 Pool #503909, 6.00%, 10/25/22 4,589,851
Federal Home Loan Bank - Discount Notes (A) (33.1%) 2,186,218 Pool #504015, 6.00%, 1/25/23 2,185,663
20,000,000 5.76%, 3/1/00 20,000,000 4,516,798 Pool #504062, 6.00%, 2/25/23 4,516,798
230,000,000 5.82%, 3/1/00 230,000,000 3,777,576 Pool #504074, 6.00%, 2/25/23 3,777,576
-------------
Total Federal Home Loan Bank - Discount Notes 250,000,000 1,640,648 Pool #504203, 6.13%, 7/25/13 1,645,620
-------------
1,534,754 Pool #504269, 6.13%, 5/25/15 1,537,972
Small Business Administration (B) (9.4%) 1,329,816 Pool #504345, 6.13%, 5/25/18 1,329,816
215,188 Pool #500545, 8.38%, 3/25/03 215,188 5,393,413 Pool #504366, 5.88%, 2/25/24 5,388,610
427,977 Pool #501077, 7.00%, 11/25/14 427,977 11,368,738 Pool #504719, 5.38%, 7/25/24 11,368,738
--------------
1,866,701 Pool #501308, 7.00%, 10/25/15 1,899,761 Total Small Business Administration 71,123,348
--------------
1,608,510 Pool #501543, 6.88%, 7/25/16 1,609,833
326,369 Pool #501628, 8.38%, 9/25/04 326,369 Student Loan Marketing Association (B) (6.6%)
579,133 Pool #501690, 6.63%, 12/25/16 581,035 20,000,000 6.41%, 3/3/00 20,000,000
886,401 Pool #501898, 6.75%, 7/25/17 888,424 15,000,000 6.27%, 2/21/01 15,000,000
3,255,951 Pool #502150, 6.50%, 2/25/18 3,301,295 15,000,000 6.33%, 8/14/01 15,000,000
--------------
224,760 Pool #502161, 6.50%, 2/25/18 224,760 Total Student Loan Marketing Association 50,000,000
--------------
2,043,607 Pool #502208, 6.50%, 2/25/18 2,068,142
264,504 Pool #502306, 6.50%, 2/25/18 264,504 Student Loan Marketing Association - Discount Notes
1,013,447 Pool #502613, 6.50%, 4/25/19 1,013,447 (A) (19.9%)
618,500 Pool #503058, 6.38%, 7/25/15 618,500 150,000,000 5.82%, 3/1/00 150,000,000
--------------
1,183,181 Pool #503082, 6.38%, 7/25/20 1,183,181
778,392 Pool #503120, 6.38%, 10/25/20 778,392 U.S. Treasury Bills (A) (13.1%)
354,421 Pool #503121, 6.38%, 8/25/15 354,421 100,000,000 5.71%, 4/27/00 99,095,917
--------------
1,193,358 Pool #503232, 6.13%, 2/25/15 1,193,358
563,201 Pool #503278, 6.13%, 2/25/21 563,221 Total U.S. Government Securities 635,219,265
--------------
2,019,563 Pool #503431, 6.25%, 7/25/21 2,020,608
1,961,418 Pool #503461, 6.25%, 9/25/21 1,962,387 Repurchase Agreements (15.9%)
1,171,496 Pool #503472, 6.25%, 8/25/21 1,172,040 120,000,000 Bear, Stearns & Co., Inc., 5.80%,
614,804 Pool #503553, 6.13%, 11/25/21 613,374 3/6/00, to be repurchased
4,157,763 Pool #503671, 6.13%, 3/25/22 4,157,763 at $135,532,411; collateralized
1,315,315 Pool #503754, 6.13%, 5/25/22 1,315,315 by various U.S. Government
771,634 Pool #503780, 6.13%, 3/25/22 772,669 Agency Securities. 120,000,000
--------------
Total Investments (100.0%) at Amortized Cost $ 755,219,265
==============
</TABLE>
See Notes to Financial Statements
and Notes to Schedule of Investments. 14 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - CASH PORTFOLIO
FEBRUARY 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
Face Security Face Security
Amount Description Value Amount Description Value
- -------------- ------------------------------- -------------- ------------- ------------------------------ ----------------
U.S. Government Securities (2.1%) Commercial Paper (concluded)
Small Business Administration (B) (2.1%) $ 80,000,000 Merrill Lynch & Co., Inc., 5.87%,
$ 152,643 Pool #500536, 7.50%, 5/25/13 $ 153,374 3/14/00 $ 79,833,600
287,379 Pool #500730, 8.38%, 2/25/04 287,379 75,000,000 Prudential Funding Corp., 5.84%,
489,668 Pool #501733, 6.50%, 2/25/17 494,047 3/22/00 74,749,313
687,626 Pool #501989, 6.63%, 10/25/12 689,090 70,000,000 Salomon Smith Barney, 5.88%,
93,426 Pool #502914, 6.50%, 3/25/15 93,426 3/16/00 69,832,000
1,417,684 Pool #503121, 6.38%, 8/25/15 1,417,684 50,000,000 UBS Finance, Inc., 5.91%, 3/1/00 50,000,000
2,736,817 Pool #503429, 6.25%, 6/25/16 2,736,817 80,000,000 Warner Lambert Co., 5.88%, 3/20/00 79,756,800
490,354 Pool #503461, 6.25%, 9/25/21 490,605 30,000,000 Washington Post Co., 5.89%,
2,265,034 Pool #503553, 6.13%, 11/25/21 2,259,189 3/24/00 29,889,408
----------------
1,972,972 Pool #503754, 6.13%, 5/25/22 1,972,972 Total Commercial Paper 1,131,074,074
----------------
3,061,087 Pool #503882, 6.00%, 9/25/22 3,057,761
3,821,758 Pool #503912, 6.00%, 10/25/22 3,819,569 Corporate Notes (B) (7.5%)
4,176,585 Pool #504015, 6.00%, 1/25/23 4,175,417 50,000,000 BA Securities, Inc. 5.86%, 3/13/00 49,998,742
16,993,254 Pool #504366, 5.88%, 2/26/24 16,978,062 25,000,000 BA Securities, Inc., 6.00%, 3/23/00 25,000,000
--------------
Total Small Business Administration 38,625,392 15,000,000 Bear, Stearns & Co., Inc., 6.00%,
--------------
4/7/00 15,000,000
Total U.S. Government Securities 38,625,392 50,000,000 Bear, Stearns & Co., Inc., 5.95%,
--------------
1/5/01 50,000,000
----------------
Commercial Paper (60.5%) Total Corporate Notes 139,998,742
----------------
55,000,000 American Express Credit Corp., Repurchase Agreements (29.9%)
5.85%, 3/17/00 54,859,689 200,000,000 Bear, Stearns & Co., Inc., 5.80%,
80,000,000 Bellsouth Capital Corp., 5.92%, 79,576,133 3/6/00, to be repurchased at
4/3/00
80,000,000 British Aerospace, 5.98%, 3/10/00 79,882,800 $207,652,872; collateralized by
80,000,000 CIT Group Holdings, Inc., 5.92%, various U.S. Government
3/20/00 79,755,111 Agency Securities. 200,000,000
50,000,000 Coca Cola Co., 5.84%, 3/24/00 49,816,958
80,000,000 Deutsche Bank Securities, 5.90%, 159,000,000 Donaldson Lufkin Jenrette, 5.82%,
3/20/00 79,755,956 3/1/00, to be repurchased at
35,000,000 DuPont (E.I.) de Nemours, 5.87%, $159,025,705; collateralized by
3/22/00 34,882,604 various U.S. Government Agency
80,000,000 Ford Motor Credit Corp., 5.90%, Securities. 159,000,000
3/20/00 79,755,956
15,000,000 General Electric Capital Corp., 5.94%, 200,000,000 Salomon Smith Barney, 5.87%,
3/6/00 14,988,146 3/1/00, to be repurchased
30,000,000 General Electric Capital Corp., 5.89%, at $200,032,611; collateralized
3/22/00 29,894,217 by various U.S. Government
60,000,000 Goldman Sachs, 5.99%, 2/25/00 59,678,250 Agency Securities. 200,000,000
----------------
75,000,000 Lucent Technologies, Inc., 5.83%, Total Repurchase Agreements 559,000,000
----------------
3/15/00 74,832,875
29,400,000 Merck & Co., Inc., 5.86%, 3/15/00 29,334,258 Total Investments (100.0%) at Amortized Cost $ 1,868,698,208
================
</TABLE>
See Notes to Financial Statements
and Notes to Schedules of Investments. 15 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - MUNICIPAL CASH PORTFOLIO
FEBRUARY 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
Face Security Face Security
Amount Description Value Amount Description Value
- -------------- --------------------------------- -------------- ------------ ------------------------------- ------------
Municipal Securities (B) (100.0%) Municipal Securities (continued)
Alabama (7.8%) Indiana (4.5%)
$ 1,100,000 Huntsville, AL, Health Care Authority $ 1,000,000 Indiana HFA RV, Clarian Health
RV, Series A, MBIA insured, 3.90% Partners, Series B, 3.90% V/R,
V/R, 6/1/27 $ 1,100,000 2/15/26 $ 1,000,000
------------
600,000 University of AL, Birmingham, Kentucky (4.5%)
Hospital RV, Series B, 3.85% V/R, 1,000,000 Kentucky EDA, Hospital Facilities
10/1/07 600,000 RV, Health Alliance Project, Series C,
--------------
1,700,000 MBIA insured, 3.88% V/R, 1/1/22 1,000,000
-------------- ------------
Arizona (4.5%) Maryland (5.5%)
1,000,000 Arizona Health Facilities Authority 1,200,000 State of Maryland, Waste Disposal
RV, Pooled Loan Programs, FGIC Authority Resource RV, Harford
insured, 3.90%, V/R, 10/1/15 1,000,000 County, 3.75% V/R, 1/1/08 1,200,000
-------------- ------------
Connecticut (4.5%) Nevada (4.5%)
1,000,000 Connecticut Health & Education 1,000,000 Clark County, NV, Airport
Facilities Authority RV, Yale Improvement RV, Series A, MBIA
University, Series T, 3.85% V/R, insured, 3.85% V/R, 7/1/12 1,000,000
7/1/29 1,000,000 ------------
--------------
New Jersey (4.5%)
Florida (8.7%) 1,000,000 New Jersey EDA, Water Facilities
1,000,000 Alachua County, FL, Health Facilities RV, Elizabethtown Water Co. Project,
RV, Shands Teaching Hospital, Series Series B, AMBAC insured, 3.65%
B, 3.88%, V/R, 12/1/26 1,000,000 V/R, 6/1/27 1,000,000
------------
900,000 Tampa, FL, Occupational License Tax New Mexico (6.5%)
RV, Series A, FGIC-SPI insured, 1,000,000 New Mexico State, Tax & Revenue
3.88% V/R, 10/1/18 900,000 Anticipation Notes, University of
--------------
1,900,000 New Mexico, University RV,
--------------
AMBAC insured, 4.50% V/R, 6/1/06 1,001,879
Georgia (3.2%)
700,000 Burke County, GA, Pollution Control 400,000 University of New Mexico RV,
RV, Oglethorpe Power Corp., 3.85% AMBAC insured, 3.85% V/R, 6/1/06 400,000
------------
V/R, 1/1/16 700,000 1,401,879
-------------- ------------
Hawaii (4.5%) North Carolina (7.4%)
1,000,000 State of Hawaii, Budget & Finance 600,000 Charlotte, NC, Airport RV, Series A,
RV, Queens Health Systems, Series A, MBIA insured, 3.95% V/R, 7/1/17 600,000
3.30% V/R, 7/1/26 1,000,000
--------------
1,000,000 Mecklenburg County, NC, Public
Illinois (4.5%) Improvement, Series C, Bank of
1,000,000 Illinois HFA RV, Advocate Health America, LOC, 3.95% V/R, 7/1/17 1,000,000
------------
Care, Series B, 4.05% V/R, 8/15/22 1,000,000 1,600,000
-------------- ------------
</TABLE>
See Notes to Financial Statements
and Notes to Schedule of Investments. 16 FORUM FUNDS[R]
<PAGE>
SCHEDULE OF INVESTMENTS - MUNICIPAL CASH PORTFOLIO (Concluded)
FEBRUARY 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
Face Security
Amount Description Value
- -------------- --------------------------------- --------------
Municipal Securities (concluded)
Pennsylvania (9.0%)
$ 1,000,000 Pennsylvania State HEHFA, Health
Services RV, University of
Pennsylvania, Series B, 3.95% V/R,
1/1/24 $ 1,000,000
1,000,000 York County, PA, IDA, PCR Bonds,
Public Service Electric & Gas, Series
A, MBIA insured, 3.80% V/R, 9/1/20 1,000,000
--------------
2,000,000
--------------
Tennessee (4.5%)
1,000,000 Clarksville, TN, Public Building 1,000,000
Authority RV, Pooled Financing,
Tennessee Bond, MBIA insured,
3.85% V/R, 12/1/00
--------------
Texas (6.9%)
500,000 South Texas, TX, HEFA RV, MBIA
insured, 3.95% V/R, 12/1/27 500,000
1,000,000 Texas State, GO Bonds, Veterans
Housing Assistance Fund I, 3.40%
V/R, 12/1/16 1,000,000
--------------
1,500,000
--------------
Washington (4.5%)
1,000,000 State of Washington, GO Bonds,
Series VR 96B, 3.90% V/R, 6/1/20 1,000,000
--------------
Total Investments (100.0%) at Amortized Cost $ 22,001,879
==============
See Notes to Financial Statements
and Notes to Schedule of Investments. 17 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation
EDA Economic Development Authority
FGIC Financial Guaranty Insurance Company
FGIC-SPI Financial Guaranty Insurance Company-Securities Purchase, Inc.
GO General Obligation
HEFA Higher Education Facilities Authority
HEHFA Higher Education & Health Facilities Authority
HFA Housing Finance Authority
IDA Industrial Development Authority
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
RV Revenue Bonds
V/R Variable Rate
(A) Annualized yields at time of purchase.
(B) Certain securities are deemed to have a maturity remaining until the next
adjustment of the interest rate or the longer of the demand period or
readjustment. The interest rates shown reflect the rate in effect on
February 29, 2000.
See Notes to Financial Statements. 18 FORUM FUNDS(R)
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES - PORTFOLIOS
FEBRUARY 29, 2000 (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 $ 347,921,159 $ 31,451,913 $ 635,219,265 $ 1,309,698,208 $ 22,001,879
Repurchase agreements at cost 70,960,000 - 120,000,000 559,000,000 -
-------------- -------------- -------------- ---------------- --------------
Total investments, at amortized value 418,881,159 31,451,913 755,219,265 1,868,698,208 22,001,879
Cash 18,152 - 11,286 193,274 1,166
Interest and other receivables 17,252 149,319 2,152,856 2,825,800 95,821
Receivable from Adviser (Note 3) - - - - 6,568
Organization costs, net of
amortization (Note 2) 120 - 2,195 594 -
-------------- -------------- -------------- ---------------- --------------
Total assets 418,916,683 31,601,232 757,385,602 1,871,717,876 22,105,434
-------------- -------------- -------------- ---------------- --------------
LIABILITIES
Payable to Adviser (Note 3) 10,974 - 24,083 45,595 -
Payable to Administrator (Note 3) 16,673 - 36,561 69,273 -
Accrued expenses and other liabilities 32,461 11,669 43,277 63,292 -
-------------- -------------- -------------- ---------------- --------------
Total liabilities 60,108 11,669 103,921 178,160 -
-------------- -------------- -------------- ---------------- --------------
NET ASSETS $ 418,856,575 $ 31,589,563 $ 757,281,681 $ 1,871,539,716 $ 22,105,434
============== ============== ============== ================ ==============
</TABLE>
See Notes to Financial Statements. 19 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS - PORTFOLIOS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 (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 $10,383,217 $ 964,589 $ 23,538,038 $40,513,906 $ 390,388
-------------- ---------------- ----------------- -------------- -------------
EXPENSES
Investment advisory (Note 3) 64,766 8,600 141,288 235,022 5,590
Administration (Note 3) 96,929 8,600 211,404 352,204 5,590
Custody 44,207 3,925 96,442 160,376 2,795
Accounting (Note 3) 24,000 24,000 24,000 24,000 30,000
Legal 1,494 344 3,696 4,477 30
Audit 3,441 5,411 7,325 11,467 4,985
Trustees 1,606 153 3,795 5,491 97
Rating fees 14,800 - - - -
Amortization of organization costs (Note 2) 120 - 2,195 594 -
Miscellaneous 3,429 1,221 9,027 19,244 1,113
-------------- ---------------- ----------------- -------------- -------------
Total expenses 254,792 52,254 499,172 812,875 50,200
Expenses reimbursed and fees waived
(Note 4) - (26,380) - - (50,200)
-------------- ---------------- ----------------- -------------- -------------
Net expenses 254,792 25,874 499,172 812,875 -
-------------- ---------------- ----------------- -------------- -------------
NET INVESTMENT INCOME 10,128,425 938,715 23,038,866 39,701,031 390,388
NET REALIZED GAIN ON INVESTMENTS
SOLD 9,444 67 729 - -
-------------- ---------------- ----------------- -------------- -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $10,137,869 $ 938,782 $ 23,039,595 $39,701,031 $ 390,388
============== ================ ================= ============== =============
</TABLE>
See Notes to Financial Statements. 20 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS - PORTFOLIOS
FOR THE YEAR ENDED AUGUST 31, 1999 AND THE SIX MONTHS ENDED FEBRUARY 29, 2000
(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, 1998 $ 264,844,947 $ 46,762,986 $ 717,124,357 $ 607,340,844 $ 20,834,474
--------------- ---------------- ----------------- ---------------- --------------
OPERATIONS
Net investment income 14,338,620 1,959,744 43,247,634 38,566,190 890,884
Net realized gain (loss) on (11,696) (5,051) 24,483 (663) (3,395)
investments sold
--------------- ---------------- ----------------- ---------------- --------------
Net increase in net assets from operations 14,326,924 1,954,693 43,272,117 38,565,527 887,489
--------------- ---------------- ----------------- ---------------- --------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions 1,235,422,406 35,329,739 2,886,646,104 2,464,999,269 36,409,301
Withdrawals (1,121,452,949) (48,706,809) (2,863,580,162) (2,074,003,392) (34,072,975)
--------------- ---------------- ----------------- ---------------- --------------
Net transactions in investors' beneficial
interests 113,969,457 (13,377,070) 23,065,942 390,995,877 2,336,326
--------------- ---------------- ----------------- ---------------- --------------
Net increase (decrease) in net assets 128,296,381 (11,422,377) 66,338,059 429,561,404 3,223,815
--------------- ---------------- ----------------- ---------------- --------------
NET ASSETS - August 31, 1999 393,141,328 35,340,609 783,462,416 1,036,902,248 24,058,289
--------------- ---------------- ----------------- ---------------- --------------
OPERATIONS
Net investment income 10,128,425 938,715 23,038,866 39,701,031 390,388
Net realized gain on investments sold 9,444 67 729 - -
--------------- ---------------- ----------------- ---------------- --------------
Net increase in net assets from operations 10,137,869 938,782 23,039,595 39,701,031 390,388
--------------- ---------------- ----------------- ---------------- --------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions 1,061,469,622 18,039,577 1,535,870,549 1,562,031,934 3,678,516
Withdrawals (1,045,892,244) (22,729,405) (1,585,090,879) (767,095,497) (6,021,759)
--------------- ---------------- ----------------- ---------------- --------------
Net transactions in investors' beneficial
interests 15,577,378 (4,689,828) (49,220,330) 794,936,437 (2,343,243)
--------------- ---------------- ----------------- ---------------- --------------
Net increase (decrease) in net assets 25,715,247 (3,751,046) (26,180,735) 834,637,468 (1,952,855)
--------------- ---------------- ----------------- ---------------- --------------
NET ASSETS - February 29, 2000 $ 418,856,575 $ 31,589,563 $ 757,281,681 $ 1,871,539,716 $22,105,434
=============== ================ ================= ================ ==============
</TABLE>
See Notes to Financial Statements. 21 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - PORTFOLIOS
FEBRUARY 29, 2000 (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 five diversified investment portfolios, Treasury Cash
Portfolio, Government Portfolio, Government Cash Portfolio, Cash Portfolio and
Municipal Cash Portfolio (individually, a "Portfolio" and, collectively, the
"Portfolios"). 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. On
May 25, 1998, Treasury Portfolio was renamed Government Portfolio.
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, 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 Portfolio 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 - Treasury Cash Portfolio, Government Cash Portfolio, and
Cash Portfolio invest in repurchase agreements. Each of these Portfolios,
through its custodian, receives delivery of the underlying collateral, whose
market value must always 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 their 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.
22 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - PORTFOLIOS (Continued)
FEBRUARY 29, 2000 (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. In addition, certain legal
expenses are charged to the Portfolios by FAdS.
PLACEMENT AGENT - Forum Fund Services, Inc. ("FFS"), 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 Treasury Cash, Government Cash and Cash Portfolios
based on the lesser of $4,000/month or 0.05% of the Portfolio's average annual
daily net assets, plus additional charges. Government Portfolio and Municipal
Cash Portfolio each pay a fee of $48,000 per year, plus certain additional
charges.
NOTE 4. WAIVER OF FEES
For the six months ended february 29, 2000, fads and facs voluntarily waived a
portion of their fees for certain portfolios as follows: government portfolio
investment advisory fees of $8,600, administration fees of $8,600, and
accounting fees of $9,180; municipal cash portfolio advisory fees of $5,590,
administration fees of $5,590, and accounting fees of $30,000. Fads also
reimbursed certain expenses of municipal cash portfolio in the amount of $9,020.
23 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - PORTFOLIOS (Concluded)
FEBRUARY 29, 2000 (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 Net Gross
Income Expenses Expenses
Treasury Cash Portfolio
Six Months Ended February 29, 2000 (a)................................... 5.22% 0.13% 0.13%
Year Ended August 31, 1999............................................... 4.69% 0.14% 0.14%
Year Ended August 31, 1998............................................... 5.34% 0.15% 0.17%
Year Ended August 31, 1997............................................... 5.20% 0.15% 0.18%
Year Ended August 31, 1996............................................... 5.30% 0.15% 0.20%
Government Portfolio
Six Months Ended February 29, 2000 (a)................................... 5.46% 0.15% 0.30%
Year Ended August 31, 1999............................................... 4.85% 0.15% 0.30%
Year Ended August 31, 1998............................................... 5.26% 0.15% 0.29%
Period Ended August 31, 1997 (a) (b)..................................... 5.11% 0.15% 0.36%
Year Ended March 31, 1997................................................ 5.04% 0.15% 0.33%
Period Ended March 31, 1996 (a).......................................... 4.99% 0.15% 0.60%
Government Cash Portfolio
Six Months Ended February 29, 2000 (a)................................... 5.45% 0.12% 0.12%
Year Ended August 31, 1999............................................... 4.94% 0.12% 0.12%
Year Ended August 31, 1998............................................... 5.52% 0.13% 0.13%
Year Ended August 31, 1997............................................... 5.38% 0.14% 0.14%
Year Ended August 31, 1996............................................... 5.49% 0.14% 0.14%
Cash Portfolio
Six Months Ended February 29, 2000 (a)................................... 5.64% 0.12% 0.12%
Year Ended August 31, 1999............................................... 5.00% 0.12% 0.12%
Year Ended August 31, 1998............................................... 5.55% 0.13% 0.13%
Year Ended August 31, 1997............................................... 5.45% 0.15% 0.15%
Year Ended August 31, 1996............................................... 5.50% 0.15% 0.16%
Municipal Cash Portfolio
Six Months Ended February 29, 2000 (a)................................... 3.49% 0.00% 0.45%
Year Ended August 31, 1999............................................... 3.11% 0.03% 0.35%
Period Ended August 31, 1998 (a)......................................... 3.18% 0.09% 0.61%
</TABLE>
(A) ANNUALIZED.
(B) EFFECTIVE JUNE 19, 1997, GOVERNMENT PORTFOLIO CHANGED ITS FISCAL YEAR
END FROM MARCH 31 TO AUGUST 31.
24 FORUM FUNDS[R]
<PAGE>
(This page has been left blank intentionally).
<PAGE>
(This page has been left blank intentionally).
<PAGE>
<TABLE>
<S> <C>
FOR MORE INFORMATION FORUM
FUNDS
DAILY ASSETS TREASURY
OBLIGATIONS FUND
DAILY ASSETS
GOVERNMENT FUND
DAILY ASSETS GOVERNMENT
OBLIGATIONS FUND
DAILY ASSETS
MUNICIPAL FUND
TRANSFER AGENT
Forum Shareholder Services, LLC
Two Portland Square
Portland, ME 04101
DISTRIBUTOR
Forum Fund Services, LLC
Two Portland Square
Portland, ME 04101
[LOGO]
FORUM FUNDS
P.O. Box 446
Portland, Maine 04112
This report is authorized for distribution only to shareholders and 800-94FORUM (Shareholder Services)
to others who have received a copy of the Funds' prospectuses. 800-95FORUM (Dealer Services)
www.forumfunds.com
</TABLE>
<PAGE>
