FORUM ANNUAL REPORT
FUNDS MAY 31, 2000
INVESTORS EQUITY FUND
EQUITY INDEX FUND
[Picture of Pantheon]
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TABLE OF CONTENTS
A Message to Our Shareholders.......................................... 1
FINANCIAL STATEMENTS OF FORUM INVESTORS EQUITY AND EQUITY INDEX FUNDS
Performance Charts and Analysis........................................ 3
Independent Auditors' Report........................................... 4
Schedule of Investments................................................ 5
Statements of Assets and Liabilities................................... 6
Statements of Operations............................................... 7
Statements of Changes in Net Assets.................................... 8
Financial Highlights................................................... 9
Notes to Financial Statements.......................................... 11
FINANCIAL STATEMENTS OF INDEX PORTFOLIO OF WELLS FARGO CORE TRUST
MAY 31, 2000 (UNAUDITED)
Statement of Assets and Liabilities.................................... 16
Schedule of Investments................................................ 17
FINANCIAL STATEMENTS OF INDEX PORTFOLIO OF CORE TRUST (DELAWARE)
ANNUAL REPORT - SEPTEMBER 30, 1999
Independent Auditors' Report........................................... 26
Statement of Assets and Liabilities.................................... 27
Statement of Operations................................................ 28
Statements of Changes in Net Assets.................................... 29
Financial Highlights................................................... 30
Notes to Financial Statements.......................................... 31
Schedule of Investments................................................ 33
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A MESSAGE TO OUR SHAREHOLDERS (CONCLUDED)
MAY 31, 2000
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[FORUM LOGO]
INVESTORS EQUITY FUND
EQUITY INDEX FUND
May 31, 2000 ANNUAL REPORT
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Dear Investor:
This Annual Report covers Investors Equity Fund and Equity Index Fund, two
series of Forum Funds, and reviews their performance for the year ended May 31,
2000. As of this date, the two Funds have combined total assets of over $47
million.
INVESTORS EQUITY FUND
For the fiscal year ending May 31, 2000, Investors Equity Fund achieved a total
return of 15.96% (not including the effect of the Fund's maximum 4% sales
charge).* This compares favorably to the 10.56% total return of the Standard and
Poor's 500 Index.
The Fund's investment approach has remained consistent as the Fund managers have
continued to focus on high quality, growth oriented stocks. The managers
continued to invest in leadership companies with high unit growth that do not
rely heavily of pricing power to grow top line revenues. As a result, the
emphasis has been to maintain overweight positions in technology, health care
and selected consumer stocks and continue to de-emphasize commodity related or
regulated industries. The Fund managers intend to continue this strategy.
The U.S. and European economies have been very strong over the past year, as
have been corporate earnings. Domestically, the Federal Reserve has been
responding to the strong economy, tight labor markets, and rapid consumer
spending by raising rates to head off inflation. During the fiscal year the
Federal Reserve raised the Federal Funds rates by 175 basis points (1.75%) in an
attempt to slow the economy. This has resulted in some significant volatility
for the capital markets. The quality of the stocks held in the Fund helped
weather much of the extreme volatility experienced in the Capital Markets over
the past fiscal year.
As the Fund enters the new fiscal year, the managers expect the economy to slow
to a more sustainable growth rate. Inflation, although creeping higher, has
remained fairly benign and should reduce the likelihood of any significant rate
hikes in the near term. This environment should favor growth oriented companies
with consistent earnings.
EQUITY INDEX FUND
The Fund returned 10.55% for the fiscal year ended May 31, 2000, excluding any
sales charges, outperforming its benchmark, the S&P 500 Composite Stock Index,
which returned 10.48%.* The Fund distributed $0.15 per share in dividend income
and $0.05 per share in capital gains during the period.
To achieve its goal of approximating the return of the S&P 500 Index, the Fund
invests in all 500 stocks that make up the Index and in the same weightings as
determined by S & P. Differences between the Fund's performance and the Index
are primarily due to Fund expenses and the effects of cash positions held by the
Fund.
A small portion of the Fund's assets are held in cash, which is invested in
money market investments so the Fund can accommodate shareholder transactions
without being forced to liquidate stocks to provide liquidity. Holding cash
minimizes transaction costs but it can hurt performance in a rising market. The
Fund minimizes this risk by hedging its cash position through investing in S&P
500 futures contracts, which has the effect of keeping the Fund fully invested
in stocks.
1 FORUM FUNDS[R]
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A MESSAGE TO OUR SHAREHOLDERS
MAY 31, 2000
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IN CONCLUSION
Thank you for your confidence in Forum Funds. We will continue to provide you
with the high quality investment service to which you have grown accustomed. If
you have questions, please discuss them with your investment professional, or
call us at (207) 879-0001.
Sincerely,
/s/ John Y. Keffer
John Y. Keffer,
Chairman
*PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. During the period certain
fees and expenses were waived by the service providers. Without these waivers
total returns would have been lower. If the maximum sales charge had been
reflected and if there had been no fee waivers, the quoted performance would
have been lower.
The S&P 500 Index is a group of unmanaged securities widely regarded by
investors to be representative of the market in general. One cannot invest
directly in an index.
The views in this report were those of the Funds' managers as of May 31, 2000,
and may not reflect the views of the managers on the date this report is first
published or any time thereafter. These views are intended to assist
shareholders of the Funds in understanding their investment in the Funds and do
not constitute investment advice.
2 FORUM FUNDS[R]
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PERFORMANCE CHARTS & ANALYSIS
MAY 31, 2000
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COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
These charts reflect the change in value of a $10,000 investment, including
reinvested dividends and distributions, in Investors Equity Fund and Equity
Index Fund, compared to the Standard and Poor's 500 Composite Index ("S&P 500
Index"), since each Fund's inception. The S&P 500 Index is a market weighted
index composed of 500 large capitalization companies. The total return of each
Fund includes operating expenses and a 4.00% sales charge that reduce returns,
while the total return of the S&P 500 Index does not include expenses and sales
charges. Each Fund is professionally managed while the S&P 500 Index is
unmanaged and is not available for investment. Investment return and principal
value of an investment in each Fund will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Performance information presented here represents only past performance and does
not necessarily indicate future results.
<TABLE>
<S> <C>
Investors Equity Fund vs. S&P 500 Index Equity Index Fund vs. S&P 500 Index
Average Annual Total Return on 5/31/00 Average Annual Total Return on 5/31/00
One Year: 11.32% One Year: 6.13%
Since Inception on 12/17/97: 20.52% Since Inception on 12/24/97: 18.16%
Investment Value on 5/31/00 Investment Value on 5/31/00
Investors Equity Fund: $15,804 Equity Index Fund: $15,009
S&P 500 Index: $15,230 S&P 500 Index: $15,770
Investors S&P 500 Equity Index S&P 500
Equity Fund Index Fund Index
12/17/97 9,600 10,000 12/24/97 9,600 10,000
12/31/97 9,725 10,065 12/31/97 9,926 10,420
01/31/98 9,926 10,176 01/31/98 10,042 10,535
02/28/98 10,589 10,910 02/28/98 10,762 11,294
03/31/98 11,059 11,468 03/31/98 11,309 11,872
04/30/98 11,251 11,583 04/30/98 11,424 11,991
05/31/98 10,973 11,385 05/31/98 11,222 11,785
06/30/98 11,702 11,847 06/30/98 11,674 12,264
07/31/98 11,395 11,722 07/31/98 11,549 12,133
08/31/98 9,850 10,029 08/31/98 9,878 10,381
09/30/98 10,502 10,671 09/30/98 10,560 11,046
10/31/98 11,405 11,538 10/31/98 11,395 11,944
11/30/98 12,249 12,237 11/30/98 12,086 12,667
12/31/98 13,240 12,941 12/31/98 12,792 13,396
01/31/99 14,008 13,482 01/31/99 13,286 13,956
02/28/99 13,482 13,063 02/28/99 12,879 13,523
03/31/99 13,818 13,585 03/31/99 13,383 14,064
04/30/99 13,955 14,112 04/30/99 13,906 14,608
05/31/99 13,629 13,779 05/31/99 13,577 14,264
06/30/99 14,513 14,542 06/30/99 14,332 15,056
07/31/99 14,008 14,088 07/31/99 13,887 14,587
08/31/99 13,924 14,019 08/31/99 13,819 14,514
09/30/99 13,345 13,635 09/30/99 13,441 14,116
10/31/99 14,365 14,497 10/31/99 14,313 15,009
11/30/99 14,786 14,792 11/30/99 14,594 15,314
12/31/99 15,816 15,662 12/31/99 15,451 16,216
01/31/00 15,205 14,875 01/31/00 14,675 15,402
02/29/00 14,720 14,593 02/29/00 14,400 15,110
03/31/00 16,150 16,020 03/31/00 15,804 16,588
04/30/00 16,081 15,550 04/30/00 15,323 16,100
05/31/00 15,804 15,230 05/31/00 15,009 15,770
</TABLE>
3 FORUM FUNDS[R]
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INDEPENDENT AUDITORS' REPORT
MAY 31, 2000
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To the Board of Trustees and Shareholders,
Forum Funds:
We have audited the accompanying statements of assets and liabilities, of the
Forum Investors Equity Fund and Forum Equity Index Fund, (the "Funds"), (two of
the series comprising Forum Funds (the "Trust")) including the schedule of
investments for Forum Investors Equity Fund, as of May 31, 2000, the related
statements of operations for the year then ended, the statements of changes in
net assets for the years ended May 31, 2000 and 1999, and the financial
highlights for each year in the three year period ending May 31, 2000. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
the securities owned as of May 31, 2000 by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the Funds as of May
31, 2000, and the results of their operations, the changes in their net assets
and their financial highlights for the respective stated periods, in conformity
with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
July 7, 2000
4 FORUM FUNDS[R]
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SCHEDULE OF INVESTMENTS
MAY 31, 2000
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<TABLE>
<S> <C> <C> <C> <C> <C>
Investors Equity Fund
Common Stock (98.0%)
Shares Security Description Value Shares Security Description Value
--------- --------------------------------- -------------- ------- --------------------------------- -------------
APPAREL & ACCESSORY STORES (2.8%) MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
27,500 Gap, Inc. $ 964,219 PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (6.1%)
-------------- 20,100 Medtronic, Inc. $ 1,037,662
28,000 Stryker Corp. 1,058,750
BANKS & CREDIT INSTITUTIONS (7.3%) -------------
12,000 Citigroup, Inc. 746,250 2,096,412
42,000 MBNA Corp. 1,170,750 -------------
13,000 Wells Fargo & Co. 588,250 MISCELLANEOUS RETAIL (2.5%)
--------------
2,505,250 58,000 Staples, Inc. + 855,500
-------------- ------------
BUILDING MATERIALS (2.1%) PETROLEUM REFINING & RELATED
Industries (3.6%)
15,000 Home Depot, Inc. 732,187 14,700 Exxon Corp. 1,224,694
-------------- -------------
BUSINESS SERVICES (14.1%) PHARMACEUTICAL PREPARATIONS (6.5%)
28,800 Automatic Data Processing, Inc. 1,582,200 11,000 Merck & Co., Inc. 820,875
20,000 Ecolab, Inc. 765,000 20,000 Pfizer, Inc. 891,250
25,000 Interpublic Group Cos., Inc. 1,073,438 11,200 Schering-Plough Corp. 541,800
-------------
23,000 Microsoft Corp. + 1,438,938 2,253,925
-------------- -------------
4,859,576
-------------- PRINTING, PUBLISHING & ALLIED INDUSTRIES (2.3%)
CHEMICALS & ALLIED PRODUCTS (3.8%) 21,000 Tribune Co. 808,500
10,000 Colgate-Palmolive Co. 526,250 -------------
11,800 The Procter & Gamble Co. 784,700 WATER TRANSPORTATION (3.0%)
-------------- 38,000 Carnival Corp. 1,030,750
1,310,950 -------------
--------------
COMMUNICATIONS (5.5%)
18,000 BellSouth Corp. 840,375 WHOLESALE TRADE - DURABLE GOODS (2.8%)
23,902 SBC Communications, Inc. 1,044,219 10,000 Danaher Corp. 481,875
-------------- 8,000 Illinois Tool Works, Inc. 464,500
1,884,594 8,000 Illinois Tool Works, Inc. 464,500
-------------- -------------
946,375
-------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, WHOLESALE TRADE - NONDURABLE GOODS (2.4%)
EXCEPT COMPUTER EQUIPMENT (12.0%) 20,000 Sysco Corp. 838,750
-------------
17,000 ADC Telecommunications, Inc. + 1,142,187
19,650 General Electric Co. 1,034,081 Total Common Stock (Cost $17,056,718) 33,724,569
15,550 Intel Corp. 1,937,919 -------------
--------------
4,114,187
--------------
SHORT-TERM INVESTMENTS (2.0%)
FINANCIAL INSTITUTIONS (2.6%) Principal Amount
14,925 Federal National Mortgage Assn. 897,366 (000 Omitted)
-------------- --------------------------------------------------------
700 Bankers Trust Instituional Cash
INDUSTRIAL & COMMERCIAL MACHINERY & Management Fund (Cost $700,314) $ 700,314
COMPUTER EQUIPMENT (13.7%) ------------
12,800 Applied Materials, Inc. + 1,068,800 Total Investments (100.0%)(Cost $17,757,032)$ 34,424,883
25,000 Cisco Systems, Inc. + 1,425,000 ============
28,000 Solectron Corp. + 925,750
20,000 Tellabs, Inc. + 1,298,750 --------------------------------------------------------
EQUITY INDEX FUND
-------------- --------------------------------------------------------
4,718,300 INVESTMENT COMPANY (100.0%)----------------------------
-------------- Security Description Value
----------------------------------------- -------------
INSURANCE (4.9%) Index Portfolio of Wells Fargo Core
Trust
14,952 American International Group, Inc. 1,683,034 (Cost $10,475,715) $ 13,491,052
-------------- =============
</TABLE>
-------------------------------------------
+ Non-income producing security.
See Notes to Financial Statements. 5 FORUM FUNDS[R]
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STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 2000
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<TABLE>
<S> <C> <C>
INVESTORS EQUITY
EQUITY INDEX
FUND FUND
--------------- ---------------
ASSETS
Investments (Notes 1 and 2)
Investments, at cost $ 17,757,032 $ 10,475,715
Net unrealized appreciation 16,667,851 3,015,337
--------------- ---------------
Total investments, at value 34,424,883 13,491,052
Interest, dividends and other receivables 27,806 -
Receivable for Fund shares sold - 5,188
Prepaid expense 700 275
Organization costs, net of amortization (Note 2) 1,732 1,352
--------------- ---------------
Total Assets 34,455,121 13,497,867
--------------- ---------------
LIABILITIES
Payable to investment adviser (Note 3) 10,312 -
Payable to other related parties (Note 3) 5,798 -
Accrued expenses and other liabilities 40,989 15,883
--------------- ---------------
Total Liabilities 57,099 15,883
--------------- ---------------
NET ASSETS $ 34,398,022 $ 13,481,984
=============== ===============
COMPONENTS OF NET ASSETS
Paid-in capital $ 12,569,991 $ 10,173,397
Accumulated undistributed net investment income - 64,235
Unrealized appreciation of investments 16,667,851 3,015,337
Accumulated net realized gain from investments 5,160,180 229,015
--------------- ---------------
NET ASSETS $ 34,398,022 $ 13,481,984
=============== ===============
SHARES OF BENEFICIAL INTEREST 2,508,360 881,784
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE $ 13.71 $ 15.29
OFFERING PRICE PER SHARE
(NAV / (1 - MAXIMUM SALES LOAD)) $ 14.28 $ 15.93
MAXIMUM SALES LOAD 4.00% 4.00%
</TABLE>
See Notes to Financial Statements. 6 FORUM FUNDS[R]
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STATEMENTS OF OPERATIONS
YEAR ENDED MAY 31, 2000
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<TABLE>
<S> <C> <C>
INVESTORS EQUITY
EQUITY INDEX
FUND FUND
---------------- ---------------
INVESTMENT INCOME
Interest income $ 34,883 $ -
Dividend income 264,525 -
Interest income allocated from Portfolio (Note 1) - 18,985
Dividend income allocated from Portfolio (Note 1) - 151,275
Securities lending income allocated from Portfolio (Note 1) - 2,937
Net expenses allocated from Portfolio (Note 1) - (18,849)
---------------- ---------------
Total Investment Income 299,408 154,348
---------------- ---------------
EXPENSES
Investment advisory (Note 3) 219,196 -
Adminstration (Note 3) 67,445 25,366
Transfer agency (Note 3) 97,749 44,241
Custody 8,867 -
Accounting (Note 3) 39,200 14,200
Audit 14,400 11,900
Legal 10,076 7,550
Trustees 1,902 712
Reporting 10,445 4,533
Pricing 1,947 7
Compliance 2,970 3,080
Amortization of organization costs (Note 2) 680 528
Miscellaneous 4,228 1,829
---------------- ---------------
Total Expenses 479,105 113,946
Expenses reimbursed and fees waived (Note 4) (107,365) (101,030)
---------------- ---------------
Net Expenses 371,740 12,916
---------------- ---------------
NET INVESTMENT INCOME (LOSS) (72,332) 141,432
---------------- ---------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FUTURES TRANSACTIONS
Net realized gain on investments 5,788,225 -
Net realized gain on investments in Portfolio (Note 1) - 309,294
Net realized loss on futures transactions
in Portfolio (Note 1) - (4,569)
---------------- ---------------
Net Realized Gain on Investments 5,788,225 304,725
---------------- ---------------
Net change in unrealized depreciation on investments (658,802) -
Net change in unrealized appreciation
on investments in Portfolio (Note 1) - 784,213
Net change in unrealized appreciation on futures
transactions in Portfolio (Note 1) - 26,472
---------------- ---------------
Net Change in Unrealized Appreciation (Depreciation) on Investments
and Futures Transactions (658,802) 810,685
---------------- ---------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 5,129,423 1,115,410
---------------- ---------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 5,057,091 $ 1,256,842
================ ===============
</TABLE>
See Notes to Financial Statements. 7 FORUM FUNDS[R]
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STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MAY 31, 1999, AND MAY 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTORS EQUITY
EQUITY INDEX
FUND FUND
-------------------------------- --------------------------------
Amount Shares Amount Shares
NET ASSETS, May 31, 1998 $ 30,090,343 $ 5,037,606
------------------- -------------------
OPERATIONS
Net investment income (loss) (20,133) 99,175
Net realized gain (loss) on investments 4,243,115 (31,534)
Net change in unrealized appreciation
of investments 2,435,455 1,642,777
------------------- -------------------
Net Increase in Net Assets Resulting from Operations 6,658,437 1,710,418
------------------- -------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income (5,924) (75,754)
Net realized gain on investments (2,567,208) (1,550)
------------------- -------------------
Total Distributions to Shareholders (2,573,132) (77,304)
------------------- -------------------
CAPITAL SHARE TRANSACTIONS
Sale of shares 2,270,010 185,166 5,660,156 450,517
Reinvestment of distributions 2,414,394 216,957 77,304 6,272
Redemption of shares (6,725,877) (553,217) (1,280,812) (93,576)
------------------- ------------ ------------------- ------------
Net Increase (Decrease) from Capital Share Transactions (2,041,473) (151,094) 4,456,648 363,213
------------------- ============ ------------------- ============
Net Increase in Net Assets 2,043,832 6,089,762
------------------- -------------------
NET ASSETS, May 31, 1999 (A) 32,134,175 11,127,368
------------------- -------------------
OPERATIONS
Net investment income (loss) (72,332) 141,432
Net realized gain on investments 5,788,225 304,725
Net change in unrealized appreciation(depreciation)
of investments (658,802) 810,685
------------------- -------------------
Net Increase in Net Assets Resulting from Operations 5,057,091 1,256,842
------------------- -------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income - (128,972)
Net realized gain on investments (3,019,893) (42,603)
------------------- -------------------
------------------- -------------------
Total Distributions to Shareholders (3,019,893) (171,575)
------------------- -------------------
CAPITAL SHARE TRANSACTIONS
Sale of shares 2,250,027 168,093 2,921,530 197,840
Reinvestment of distributions 3,013,298 232,687 171,526 11,010
Redemption of shares (5,036,676) (372,770) (1,823,707) (121,246)
------------------- ------------ ------------------- ------------
Net Increase from Capital Share Transactions 226,649 28,010 1,269,349 87,604
------------------- ============ ------------------- ============
Net Increase in Net Assets 2,263,847 2,354,616
------------------- -------------------
NET ASSETS, May 31, 2000 (B) $ 34,398,022 (b) $ 13,481,984
=================== ===================
(A) Accumulated undistributed net investment income $ - $ 51,775
=================== ===================
(B) Accumulated undistributed (distributions in excess of)
net investment income $ - $ 64,235
=================== ===================
</TABLE>
See Notes to Financial Statements. 8 FORUM FUNDS[R]
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FINANCIAL HIGHLIGHTS
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These financial highlights reflect selected data for a share outstanding
throughout each period:
<TABLE>
<S> <C> <C> <C>
INVESTORS
EQUITY
FUND
------------------------------------------------------------------------
June 1, 1999 June 1, 1998 December 17, 1997
to to to
May 31, 2000 May 31, 1999 May 31, 1998
------------------------------------------------------------------------
NET ASSET VALUE PER SHARE, Beginning of Period $12.96 $11.43 $10.00
-------------------- --------------------- --------------------
INVESTMENT OPERATIONS
Net investment income (loss) (0.03) (0.01) - (d)
Net realized and unrealized gain
on investments 2.03 2.60 1.43
-------------------- --------------------- --------------------
Total from Investment Operations 2.00 2.59 1.43
-------------------- --------------------- --------------------
-------------------- --------------------- --------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income - - (c) -
Net realized gain (1.25) (1.06) -
-------------------- --------------------- --------------------
-------------------- --------------------- --------------------
Decrease in Net Assets from Distributions (1.25) (1.06) -
-------------------- --------------------- --------------------
-------------------- --------------------- --------------------
NET ASSET VALUE, End of Period $13.71 $12.96 $11.43
==================== ===================== ====================
==================== ===================== ====================
TOTAL RETURN (a) 15.96% 24.21% 14.30%
RATIOS/SUPPLEMENTARY DATA
Net assets at end of period (000's omitted) $34,398 $32,134 $30,090
Ratios to Average Net Assets
Expenses, including reimbursement/
waiver of fees 1.10% 1.10% 1.10% (b)
Expenses, excluding reimbursement/
waiver of fees 1.42% 1.44% 2.09% (b)
Net investment income (loss), including
reimbursement/waiver of fees (0.21)% (0.06)% 0.09% (b)
PORTFOLIO TURNOVER RATE 26% 16% 11%
</TABLE>
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(a) Total return calculations do not include sales charges and would have been
lower had certain expenses not been waived or reimbursed during the period
shown (Note 4).
(b) Annualized.
(c) Distributions per share were $0.00225.
(d) Net investment income per share was $.002224.
See Notes to Financial Statements. 9 FORUM FUNDS[R]
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FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
These financial highlights reflect selected data for a share outstanding
throughout each period:
<TABLE>
<S> <C> <C> <C>
EQUITY
INDEX
FUND
-----------------------------------------------------------------------
June 1, 1999 June 1, 1998 December 24, 1997
to to to
May 31, 2000 May 31, 1999 May 31, 1998
-----------------------------------------------------------------------
NET ASSET VALUE PER SHARE, Beginning of Period $14.01 $11.69 $10.00
---------------------- --------------------- ---------------------
INVESTMENT OPERATIONS
Net investment income (Note 1) 0.45 0.16 0.07
Net realized and unrealized gain
on investments 1.03 2.27 1.62
---------------------- --------------------- ---------------------
Total from Investment Operations 1.48 2.43 1.69
---------------------- --------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income (0.15) (0.11) -
Net realized gain (0.05) - (c) -
---------------------- --------------------- ---------------------
Decrease in Net Assets from Distributions (0.20) (0.11) -
---------------------- --------------------- ---------------------
NET ASSET VALUE, End of Period $15.29 $14.01 $11.69
====================== ===================== =====================
TOTAL RETURN (a) 10.55% 20.98% 16.90%
RATIO/SUPPLEMENTARY DATA
Net assets at end of period (000's omitted) $13,482 $11,127 $5,038
Ratios to Average Net Assets
Expenses, including reimbursement/
waiver of fees 0.25% 0.25% 0.25% (b)
Expenses, excluding reimbursement/
waiver of fees 1.08% 1.26% 2.25% (b)
Net investment income (loss), including
reimbursement/waiver of fees 1.12% 1.27% 1.41% (b)
PORTFOLIO TURNOVER RATE (d) 16% 4% 7%
</TABLE>
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(a) Includes the Fund's proportionate share of income and expenses of
Portfolio.
(b) Total return calculations do not include sales charges and would have been
lower had certain expenses not been waived or reimbursed during the period
shown (Note 4).
(c) Annualized.
(d) Distributions per share were $0.002332.
(e) Information presented is that of the Portfolio in which the Fund invests
(Note 1).
See Notes to Financial Statements. 10 FORUM FUNDS[R]
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NOTES TO FINANCIAL STATEMENTS
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NOTE 1. 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. Included in this report is Investors Equity Fund and Equity Index
Fund (individually a "Fund", and collectively, "the Funds"), each a diversified
portfolio. Under its Trust Instrument, the Trust is authorized to issue an
unlimited number of each Fund's shares of beneficial interest without par value.
Commencement of operations for each Fund was as follows:
Investors Equity Fund December 17, 1997
Equity Index Fund December 24, 1997
MASTER FEEDER ARRANGEMENT - Equity Index Fund seeks to achieve its investment
objective by investing all its investable assets in Index Portfolio (the
"Portfolio"), a separate diversified portfolio of Wells Fargo Core Trust, a
registered, open-end management investment company. This is commonly referred to
as a master-feeder arrangement. Prior to November 5, 1999, Equity Index Fund
invested all of its investable assets in Index Portfolio, a diversified
portfolio of Core Trust (Delaware), another registered, open-end investment
company. On November 5, 1999, Index Portfolio of Core Trust (Delaware)
reorganized into the Portfolio. The Portfolio directly acquires portfolio
securities and a fund investing in the Portfolio acquires an indirect interest
in those securities. The Fund accounts for its investment in the Portfolio as a
partnership interest and records daily its share of the Portfolio's income,
expenses, and realized and unrealized gain or loss. In addition, the Fund incurs
its own expenses. The Fund may withdraw its investment from the Portfolio at any
time if the Trust's Board of Trustees determines that it is in the best interest
of the Fund and its shareholders to do so. The financial statements of the
Portfolio, including its schedule of investments, are in this report and should
be read in conjunction with the Fund's financial statements. The Equity Index
Fund's ownership interest in Index Portfolio was 0.76% as of May 31, 2000.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America, 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 amounts could differ
from these estimates. The following summarizes the significant accounting
policies of each Fund:
SECURITY VALUATION - On each Fund business day, the Trust determines the net
asset value per share of each Fund as of the close of the regular trading day on
the New York Stock Exchange. Securities, other than short-term securities, held
by Investors Equity Fund, and for which market quotations are readily available
are valued using the last reported sales price provided by independent pricing
services. If no sales price is reported, the mean of the last bid and asked
price is used. In the absence of readily available market quotations, securities
are valued at fair value as determined by the Trust's Board of Trustees pursuant
to the Trust's valuation procedures. Securities held by Investors Equity Fund
that have a maturity of 60 days or less are valued at amortized cost, which
approximates market value. Equity Index Fund records its investments in the
Portfolio at value. The value of such an investment reflects the Fund's
proportionate interest in the net assets of the Portfolio. The valuation of
securities held in the Portfolio is discussed in the Notes to the Financial
Statements of the Portfolio, which are included in this report.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - Investment transactions are
accounted for on trade date. Dividend income is recorded on the ex-dividend
date. Interest income is recorded as earned. Identified cost of investments sold
is used to determine gain or loss for both financial statements and federal
income tax purposes.
REPURCHASE AGREEMENTS - Investors Equity Fund may invest in repurchase
agreements. The Fund, through its custodian, receives delivery of the underlying
securities, whose market value must always exceed the repurchase price.
11 FORUM FUNDS[R]
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
DISTRIBUTIONS TO SHAREHOLDERS - Distributions of net investment income and net
capital gain, if any, are declared and paid 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 the Funds, timing differences and
differing characterizations of distributions made by the Funds.
ORGANIZATION COSTS - Costs incurred by each Fund in connection with its
organization are amortized using the straight-line method over a five-year
period.
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 gains
and certain other amounts, if any, each Fund will not be subject to a federal
excise tax. Therefore, no federal income or excise tax provision is required.
EXPENSE ALLOCATION - The Trust accounts separately for the assets, liabilities
and operations of each of its funds. Expenses that are directly attributable to
more than one fund are allocated among the respective funds in proportion to
each fund's average daily net assets.
NOTE 3. ADVISORY FEES AND OTHER TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISER - The investment adviser for Investors Equity Fund is H.M.
Payson & Co. ("Payson"). Pursuant to an Investment Advisory Agreement, Payson
receives an advisory fee from the Fund at an annual rate of 0.65% of the Fund's
average daily net assets. Payson has entered into an investment sub-advisory
agreement with Peoples Heritage Bank ("Peoples") under which Peoples exercises
certain investment discretion over the assets (or a portion of assets) of the
Fund. For its sub-advisory services, Payson pays a fee to Peoples at an annual
rate of 0.25% of the Fund's average daily net assets.
The investment adviser for the Portfolio in which Equity Index Fund invests is
Wells Fargo Bank ("WFB"). WFB is a wholly owned subsidiary of Wells Fargo &
Company, a national bank holding company. Pursuant to an Investment Advisory
Agreement, WFB receives an advisory fee at an annual rate of 0.15% of the
Portfolio's average daily net assets. Equity Index Fund pays its pro rata
portion of the advisory fees incurred by the Portfolio. WFB has retained the
services of Wells Capital Management Inc. ("WCM"), an affiliate, as an
investment subadviser to the Portfolio. The fees related to WCM's subadviser
services are borne directly by WFB and do not increase the overall fees paid by
the Portfolio to WFB.
ADMINISTRATOR - The administrator for each Fund is Forum Administrative
Services, LLC ("FAdS"). For its services, FAdS receives a fee at an annual rate
of 0.20% of the average daily net assets of each Fund.
TRANSFER AGENT - The transfer agent and dividend disbursing agent for each Fund
is Forum Shareholder Services, LLC ("FSS"). FSS receives from each Fund an
annual fee of $12,000, plus 0.25% of the average daily net assets of each Fund,
and an annual shareholder account fee of $18 per shareholder account.
DISTRIBUTOR - Forum Fund Services, LLC ("FFS"), a registered broker-dealer and a
member of the National Association of Securities Dealers, Inc., is each Fund's
distributor. For its services, FFS receives, and may reallocate to certain
financial institutions, the sales charges paid in connection with purchases or
sales of each Fund's shares.
OTHER SERVICE PROVIDER - Forum Accounting Services, LLC ("FAcS") provides fund
accounting services to each Fund. For its services, FAcS receives an annual fee
of $36,000 from Investors Equity Fund, plus certain amounts based upon the
number and types of portfolio transactions made by the Fund. FAcS is compensated
$12,000 annually by Equity Index Fund for its services.
12 FORUM FUNDS[R]
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
--------------------------------------------------------------------------------
NOTE 4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
Certain service providers of each Fund have voluntarily undertaken to waive a
portion of their fees and/or reimburse certain expenses of each Fund so that
total expenses of each Fund would not exceed certain limitations. Fee waivers
and expense reimbursements may be reduced or eliminated at any time. For the
year ended May 31, 2000, expenses reimbursed and fees waived were as follows:
<TABLE>
<S> <C> <C> <C>
EXPENSES TOTAL FEES WAIVED
REIMBURSED FEES WAIVED BY AND EXPENSES
----------------------------------------------------------
BY FADS FSS FADS FACS ADVISER REIMBURSED
-----------------------------------------------------------------------------------------------
Investors Equity Fund $ - $ - $ - $ - $ 107,365 $ 107,365
Equity Index Fund 35,397 33,266 25,367 7,000 - 101,030
Index Portfolio - - - - 498,672 498,672
</TABLE>
NOTE 5. SECURITY TRANSACTIONS
The cost of purchases and proceeds from sales of securities, other than
short-term investments, held by Investors Equity Fund were $8,673,462 and
$10,776,529, respectively, for the year ended May 31, 2000. The cost of
purchases and proceeds from sales of securities, other than short-term
investments for Equity Index Fund based on its ownership percentage of Index
Portfolio were $2,280,288 and $2,134,426, respectively, for the year ended May
31, 2000.
For federal income tax purposes, the tax basis of investment securities owned by
Investors Equity Fund as of May 31, 2000 was $17,757,032, and the net unrealized
appreciation of investment securities was $16,667,851. The aggregate gross
unrealized appreciation for all securities in which there was an excess of
market value over tax cost was $17,381,618, and the aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
market value was $713,767.
NOTE 6. FEDERAL TAX STATUS OF DIVIDENDS DECLARED DURING THE FISCAL YEAR
(UNAUDITED)
Income Dividends - All the income and any short-term capital gain dividends paid
by the Equity Index Fund were ordinary income for federal income tax purposes.
The percentage of qualifying dividends eligible for the corporate dividends
received deductions was 98.76% for Equity Index Fund.
Capital Gain Dividends - Investors Equity Fund and Equity Index Fund declared
long-term capital gains of $3,019,893 and $42,603, respectively, for the fiscal
year ended May 31, 2000.
13 FORUM FUNDS[R]
<PAGE>
(This page intentionally left blank)
<PAGE>
MAY 31, 2000
INDEX PORTFOLIO
WELLS FARGO CORE TRUST
(UNAUDITED)
<PAGE>
--------------------------------------------------------------------------------
INDEX PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
MAY 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INDEX
PORTFOLIO
-------------------
ASSETS
Investments
Investments, at cost $ 1,130,540,047
Net unrealized appreciation 640,023,508
-------------------
Total investments, at value 1,770,563,555
Receivable for dividends, interest and other receivables 2,251,208
-------------------
Total Assets 1,772,814,763
-------------------
LIABILITIES
Payable for daily variation margin on financial futures contracts 135,425
Accrued expenses and other liabilities 192,884
-------------------
Total Liabilities 328,309
-------------------
NET ASSETS $ 1,772,486,454
===================
</TABLE>
16 FORUM FUNDS[R]
<PAGE>
--------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
MAY 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
COMMON STOCK (97.55%)
Shares Security Description Value Shares Security Description Value
------------ -------------------------------- ------------- --------- -------------------------------- --------------
AGRICULTURAL (0.06%) BUSINESS SERVICES - CONTINUED
46,500 Nabisco Group Holdings Corp. $ 1,014,281 44,000 IMS Health, Inc. $ 726,000
------------- 40,000 Interpublic Group of Cos., Inc. 1,717,500
AMUSEMENT & RECREATION SERVICES (0.72%) 40,100 McKesson HBOC, Inc. 659,144
18,300 Harrah's Entertainment, Inc. + 361,425 742,200 Microsoft Corp. + 46,433,887
295,100 Walt Disney Co. ^ 12,449,531 13,800 NCR Corp. + ^ 582,187
-------------
12,810,956 46,600 Novell, Inc. + 387,363
------------- 25,400 Omnicom Group, Inc. ^ 2,132,012
APPAREL & ACCESSORY STORES (0.68%) 402,300 Oracle Corp. + 28,915,313
55,900 CVS Corp. 2,431,650 39,300 Parametric Technology Co. + 417,562
121,400 Gap, Inc. 4,256,587 38,300 PeopleSoft, Inc. + 529,019
46,400 Kohl's Corp. + 2,401,200 8,300 Sapient Corp. + ^ 829,481
61,200 Limited, Inc. 1,476,450 3,800 Shared Medical Systems Corp. 275,975
19,200 Nordstrom, Inc. ^ 482,400 27,500 Siebel Systems, Inc. + ^ 3,217,500
44,200 TJX Cos., Inc. 955,825 225,100 Sun Microsystems, Inc. + 17,248,287
-------------
12,004,112 24,400 UST, Inc. 405,650
-------------
55,400 VERITAS Software Corp. + ^ 6,454,100
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS 75,100 Yahoo! Inc. + ^ 8,490,994
& SIMILAR MATERIALS (0.05%) 9,900 Young & Rubicam, Inc. 472,725
--------------
8,400 Liz Claiborne, Inc. 330,225 167,018,372
16,800 V.F. Corp. 481,950 --------------
-------------
812,175 CHEMICALS & ALLIED PRODUCTS (9.36%)
------------- 219,300 Abbott Laboratories 8,922,770
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.03%) 32,700 Air Products and Chemicals, Inc. 1,132,238
19,700 Autozone, Inc. + 551,600 7,900 Alberto Culver Co. ^ 207,869
-------------
18,800 Allergan, Inc. 1,291,325
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.01%) 14,600 ALZA Corp. + ^ 741,862
8,500 Ryder System, Inc. 163,094 34,600 Avon Products, Inc. 1,429,413
-------------
41,500 Baxter International, Inc. 2,759,750
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & 282,900 Bristol-Myers Squibb Co. 15,577,181
OPERATIVE BUILDERS (0.03%) 33,800 Clorox Co. ^ 1,339,325
8,500 Centex Corp. 176,375 83,100 Colgate-Palmolive Co. ^ 4,373,137
6,800 Kaufman & Broad Home Corp. ^ 117,725 31,200 Dow Chemical Co. ^ 3,340,350
6,200 Pulte Corp. 137,562 149,000 E.I. du Pont de Nemours & Co. 7,301,000
-------------
431,662 11,200 Eastman Chemical Co. 510,300
-------------
18,500 Ecolab, Inc. 707,625
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE 155,500 Eli Lilly & Co. 11,837,437
HOME DEALERS (1.05%) 4,400 FMC Corp. + ^ 267,300
328,300 Home Depot, Inc. 16,025,144 15,700 Goodrich (B.F.) Co. 557,350
54,500 Lowe's Cos., Inc. 2,537,656 7,800 Great Lakes Chemical Corp. 216,450
-------------
18,562,800 15,200 Hercules, Inc. ^ 251,750
------------- 15,000 International Flavors & Fragrances,Inc.510,000
BUSINESS SERVICES (9.42%) 9,800 Mallinckrodt, Inc. 283,588
48,800 3COM Corp. + 2,040,450 333,300 Merck & Co., Inc. 24,872,513
16,900 Adobe Systems, Inc. 1,902,306 552,100 Pfizer, Inc. 24,602,956
325,400 America Online, Inc. + 17,246,200 178,541 Pharmacia Corp. 9,272,973
8,800 Autodesk, Inc. 327,250 24,800 PPG Industries, Inc. 1,229,150
89,900 Automatic Data Processing, Inc. 4,938,881 22,700 Praxair, Inc. 953,400
34,800 BMC Software, Inc. + ^ 1,531,200 187,700 Procter & Gamble Co. 12,482,050
26,000 Cabletron Systems, Inc. + 596,375 31,200 Rohm & Haas Co. 1,064,700
100,700 Cendant Corp. + ^ 1,334,275 209,500 Schering-Plough Corp. 10,134,563
20,700 Ceridian Corp. + 499,388 23,700 Sherwin-Williams Co. 551,025
25,500 Citrix Systems, Inc. + ^ 1,341,937 14,400 Sigma Aldrich 480,600
83,900 Computer Associates International, In4,320,850 19,100 Union Carbide Corp. 1,044,531
23,900 Computer Sciences Corp. + 2,292,906 10,300 W.R. Grace & Co. + 129,394
51,400 Compuware Corp. + 523,637 122,500 Warner Lambert Co. 14,960,312
67,200 Electronic Data Systems Corp. 4,321,800 13,700 Watson Pharmaceuticals, Inc. + 604,513
--------------
20,200 Equifax, Inc. 559,287 165,940,700
59,700 First Data Corp. 3,346,931 --------------
17 WELLS FRAGO CORE TRUST
<PAGE>
--------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MAY 31, 2000
--------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
------------ -------------------------------- ------------- --------- -------------------------------- --------------
COMMUNICATIONS (7.35%) EATING & DRINKING PLACES (0.46%)
44,700 Alltel Corp. $ 2,925,056 18,300 Darden Restaurants, Inc. $ 314,531
455,700 AT&T Corp. ^ 15,807,094 193,100 McDonald's Corp. 6,915,394
221,400 Bell Atlantic Corp. ^ 11,706,525 21,500 Tricon Global Restaurants, Inc. + ^ 630,219
268,400 BellSouth Corp. 12,530,925 17,000 Wendy's International, Inc. ^ 332,562
--------------
19,900 CenturyTel, Inc. 537,300 8,192,706
--------------
48,300 Clear Channel Communications, Inc. + 3,616,463
132,200 Comcast Corp., Class A + 5,007,075 ELECTRIC, GAS & SANITARY SERVICES (2.72%)
111,200 Global Crossing Ltd. + ^ 2,786,950 31,000 AES Corp. + ^ 2,704,750
138,600 GTE Corp. 8,766,450 26,900 Allied Waste Industries, Inc. + 274,044
87,300 MediaOne Group, Inc. + ^ 5,832,731 19,600 Ameren Corp. ^ 719,075
52,000 Nextel Communications, Inc. + ^ 4,816,500 27,700 American Electric Power Co. ^ 985,081
486,500 SBC Communications, Inc. 21,253,969 22,700 Carolina Power & Light Co. 780,312
124,300 Sprint Corp. (FON Group) 7,520,150 30,300 Central & Southwest Corp. 630,619
122,900 Sprint Corp. (PCS Group) + ^ 6,820,950 22,700 CINergy Corp. 604,387
72,000 US West Inc. 5,184,000 16,500 CMS Energy Corp. ^ 375,375
404,800 WorldCom, Inc. + 15,230,600 30,400 Coastal Corp. 1,865,800
-------------
130,342,738 11,600 Columbia Energy Group 750,375
-------------
31,500 Consolidated Edison Co. 1,027,687
DEPOSITORY INSTITUTIONS (5.35%) 21,300 Constellation Energy Group 730,856
55,800 AmSouth Bancorp ^ 1,007,887 34,000 Dominion Resources, Inc. 1,555,500
243,500 Bank of America Corp. ^ 13,529,469 20,700 DTE Energy Co. ^ 715,444
105,000 Bank Of New York Co., Inc. 4,928,437 52,200 Duke Energy Corp. ^ 3,040,650
163,600 Bank One Corp. ^ 5,409,025 3,800 Eastern Enterprises 234,413
49,500 BB&T Corp. 1,450,969 49,500 Edison International 1,058,062
117,700 Chase Manhattan Corp. 8,790,719 32,600 El Paso Energy Corp. ^ 1,678,900
22,300 Comerica, Inc. 1,128,938 102,100 Enron Corp. 7,440,537
44,100 Fifth Third Bancorp 2,998,800 35,200 Entergy Corp. ^ 1,020,800
140,900 First Union Corp. 4,957,919 33,200 FirstEnergy Corp. ^ 834,150
139,800 Firstar Corp. 3,573,637 14,000 Florida Progress Corp. 694,750
130,600 Fleet Boston Financial Corp. ^ 4,938,313 25,500 FPL Group, Inc. 1,262,250
23,000 Golden West Financial Corp. ^ 960,250 17,600 General Public Utilities, Inc. 497,200
32,600 Huntington Bancshares, Inc. 631,625 16,400 New Century Energies, Inc. 551,450
24,700 J.P. Morgan & Co., Inc. 3,180,125 25,300 Niagara Mohawk Holdings, Inc. + 371,594
63,800 KeyCorp 1,339,800 6,800 Nicor, Inc. ^ 249,475
72,500 Mellon Financial Corp. 2,795,781 22,100 Northern States Power Co. ^ 488,963
87,900 National City Corp. 1,758,000 4,400 Oneok, Inc. 128,150
31,700 Northern Trust Corp. 2,086,256 54,700 Pacific Gas & Electric Co. 1,418,781
18,900 Old Kent Financial Corporation 628,425 26,500 PECO Energy Co. 1,164,344
41,900 PNC Financial Services Group 2,110,713 5,100 People's Energy Corp. ^ 173,081
31,200 Regions Financial Corp. ^ 705,900 12,000 Pinnacle West Capital Corp. 429,000
23,900 SouthTrust Corp. 646,794 20,500 PPL Corp. 484,313
22,800 State Street Corp. 2,542,200 31,100 Public Service Enterprise Group, Inc.1,158,475
25,000 Summit Bancorp 717,188 42,200 Reliant Energy, Inc. ^ 1,202,700
45,600 Suntrust Banks, Inc. 2,724,600 29,200 Sempra Energy ^ 549,325
39,900 Synovus Financial Corp. 798,000 96,000 Southern Co. 2,490,000
107,500 U.S. Bancorp 2,795,000 39,400 Texas Utilities Co. 1,408,550
20,100 Union Planters Corp. ^ 628,125 88,400 Waste Management, Inc. 1,801,150
28,900 Wachovia Corp. ^ 1,997,713 62,000 Williams Cos., Inc. 2,576,875
--------------
82,300 Washington Mutual, Inc. ^ 2,366,125 48,127,243
235,400 Wells Fargo Co. ^ 10,651,850 --------------
-------------
94,778,583 ELECTRONICS & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
------------- EXCEPT COMPUTER EQUIPMENT (14.64%)
14,800 Adaptec, Inc. + 291,375
42,900 ADC Telecommunications, Inc. + ^ 2,882,344
20,900 Advanced Micro Devices, Inc. + 1,702,044
18 WELLS FARGO CORE TRUST
<PAGE>
--------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MAY 31, 2000
--------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
------------ -------------------------------- ------------- --------- -------------------------------- --------------
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, FOOD & KINDRED PRODUCTS (CONTINUED)
EXCEPT COMPUTER EQUIPMENT (CONTINUED) 9,800 Brown-Forman Corp. ^ $ 569,012
28,400 Altera Corp. + $ 2,438,850 60,800 Campbell Soup Co. 1,884,800
49,900 Analog Devices, Inc. + 3,842,300 352,200 Coca-Cola Co. 18,798,674
11,500 Andrew Corp. + ^ 403,938 60,700 Coca-Cola Enterprises, Inc. 1,039,488
30,600 Conexant Systems, Inc. + ^ 1,151,325 70,200 ConAgra, Inc. ^ 1,618,987
13,400 Cooper Industries, Inc. 448,900 43,000 General Mills, Inc. ^ 1,706,563
61,500 Emerson Electric Co. 3,628,500 50,600 Heinz (H.J.) Co. 1,982,888
1,403,700 General Electric Co. 73,869,713 19,800 Hershey Foods Corp. 1,027,125
476,400 Intel Corp. 59,371,350 57,900 Kellogg Co. 1,758,713
45,300 Linear Technology Corp. 2,675,531 207,600 PepsiCo, Inc. 8,446,725
42,400 LSI Logic Corp. + ^ 2,233,950 19,100 Quaker Oats Co. 1,405,044
454,600 Lucent Technologies, Inc. 26,082,675 43,100 Ralston-Ralston Purina Group 800,044
39,600 Maxim Integrated Products, Inc. + 2,512,125 129,600 Sara Lee Corp. 2,332,800
12,000 Maytag Corp. 393,000 61,900 Seagram Co. Ltd. ^ 2,951,856
77,200 Micron Technology, Inc. + 5,399,175 81,500 Unilever NV - NY Shares 4,141,219
28,000 Molex Inc ^ 1,366,750 16,500 Wrigley (Wm) Jr. Co. 1,321,031
--------------
101,100 Motorola, Inc. 9,478,125 60,823,531
24,500 National Semiconductor Corp. + 1,316,875 --------------
5,800 National Service Industries 126,150 FOOD STORES (0.28%)
43,500 Network Appliance, Inc. + 2,808,469 60,400 Albertson's, Inc. ^ 2,212,150
406,600 Nortel Networks Corp. 22,083,463 5,500 Great Atlantic & Pacific Tea Co. 101,063
105,200 QUALCOMM, Inc. + 6,982,650 118,900 Kroger Co. + 2,363,138
22,800 Scientific-Atlanta, Inc. 1,285,350 20,900 Winn-Dixie Stores, Inc. 330,481
--------------
57,400 Tellabs, Inc. + 3,727,413 5,006,832
231,800 Texas Instruments, Inc. 16,747,550 --------------
8,200 Thomas & Betts Corp. 232,675 FURNITURE & FIXTURES (0.16%)
10,600 Whirlpool Corp. 600,887 28,000 Leggett & Platt, Inc. 561,750
45,800 Xilinx, Inc. + 3,486,525 63,700 Masco Corp. 1,254,094
-------------
259,569,977 40,200 Newell Rubbermaid, Inc. ^ 1,055,250
------------- --------------
2,871,094
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT &
RELATED SERVICES (0.18%) GENERAL MERCHANDISE STORES (2.82%)
22,900 Dun & Bradstreet Corp. 704,175 15,800 Consolidated Stores Corp. + ^ 205,400
52,800 Paychex, Inc. 1,848,000 63,400 Costco Wholesale Corp. + 2,024,838
6,900 Perkin Elmer, Inc. 362,250 15,000 Dillards, Inc. 224,062
16,300 Quintiles Transnational Corp. + ^ 240,425 47,125 Dollar General Corp. ^ 824,688
-------------
3,154,850 30,000 Federated Department Stores, Inc. + ^1,155,000
------------- 10,200 Harcourt General, Inc. 402,900
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & 37,100 J.C. Penney Co., Inc. 672,438
TRANSPORTATION EQUIPMENT (0.49%) 69,400 KMart Corp. + 589,900
4,300 Ball Corp. 127,656 47,400 May Department Stores Co. 1,424,963
9,400 Crane Co. 247,925 53,900 Sears, Roebuck and Co. 1,990,931
18,400 Crown Cork & Seal Co., Inc. 315,100 62,500 Target Corp. 3,917,969
20,300 Danaher Corp. 978,206 635,100 Wal-Mart Stores, Inc. 36,597,638
--------------
23,400 Fortune Brands, Inc. 623,025 50,030,727
--------------
153,000 Gillette Co. ^ 5,106,375
16,000 Parker-Hannifin Corp. 667,000 HEALTH SERVICES (0.28%)
8,300 Snap-On, Inc. ^ 213,206 21,400 Biogen, Inc. + 1,166,300
12,700 Stanley Works ^ 341,313 80,400 HCA - The Healthcare Co. ^ 2,170,800
-------------
8,619,806 55,100 HEALTHSOUTH Corp. + 354,706
-------------
14,700 Manor Care, Inc. + 103,819
FOOD & KINDRED PRODUCTS (3.43%) 44,400 Tenet Healthcare Corp. ^ 1,137,750
--------------
5,300 Adolph Coors Co. ^ 298,125 4,933,375
--------------
66,400 Anheuser-Busch Cos., Inc. ^ 5,146,000
86,600 Archer Daniels Midland Co. 1,033,787
39,700 Bestfoods, Inc. 2,560,650
19 WELLS FARGO CORE TRUST
<PAGE>
--------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MAY 31, 2000
--------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
------------ -------------------------------- ------------- --------- -------------------------------- --------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION INSURANCE AGENTS, BROKERS & SERVICE (0.36%)
CONTRACTORS (0.20%) 36,600 Aon Corp. ^ $ 1,285,575
10,900 Fluor Corp. $ 354,250 23,900 Humana, Inc. + 134,438
63,000 Halliburton Co. ^ 3,213,000 38,100 Marsh & McLennan Cos., Inc. 4,193,381
-------------
3,567,250 15,100 MGIC Investment Corp. 748,394
------------- --------------
6,361,788
HOLDING & OTHER INVESTMENT OFFICES (0.04%) --------------
17,000 T. Rowe Price Associates, Inc. 649,187 INSURANCE CARRIERS (4.64%)
-------------
20,400 Aetna Life & Casualty, Inc. 1,361,700
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.25%) 38,000 AFLAC, Inc. ^ 1,964,125
29,200 Best Buy Co., Inc. + ^ 1,868,800 114,800 Allstate Corp. ^ 3,042,200
29,000 Circuit City Stores 1,444,562 35,200 American General Corp. 2,255,000
27,600 RadioShack Corp. 1,171,275 220,700 American International Group, Inc. 24,842,544
-------------
4,484,637 25,100 Chubb Corp. 1,757,000
-------------
24,100 CIGNA Corp. 2,140,381
HOTELS, ROOMING HOUSES, CAMPS & OTHER 23,400 Cincinnati Financial Corp. ^ 939,290
LODGING PLACES (0.13%) 480,800 Citigroup, Inc. 29,899,750
52,600 Hilton Hotels Corp. 447,100 31,600 Hartford Financial Services Group 1,868,350
35,400 Marriott International - Class A 1,283,250 15,000 Jefferson-Pilot Corp. 1,029,375
27,500 Mirage Resorts, Inc. + 575,781 27,900 Lincoln National Corp. 1,081,125
-------------
2,306,131 15,100 Loews Corp. 994,713
-------------
14,200 MBIA, Inc. 820,938
INDUSTRIAL & COMMERCIAL MACHINERY & 10,500 Progressive Corp. ^ 985,688
COMPUTER EQUIPMENT (9.75%) 20,300 Providian Financial Corp. 1,805,431
23,100 Apple Computer, Inc. + ^ 1,940,400 18,500 Safeco Corp. 454,406
109,100 Applied Materials, Inc. + ^ 9,109,850 32,400 St. Paul Cos., Inc. 1,215,000
47,000 Baker Hughes, Inc. 1,703,750 18,800 Torchmark Corp. 511,125
12,400 Black & Decker Corp. 452,600 24,200 UnitedHealth Group, Inc. 1,804,412
3,200 Briggs & Stratton Corp. ^ 128,000 34,300 UnumProvident Corp 778,181
13,100 Brunswick Corp. 252,175 9,100 Wellpoint Health Networks, Inc. + ^ 660,888
--------------
50,700 Caterpillar, Inc. 1,939,275 82,211,622
--------------
975,800 Cisco Systems, Inc. + 55,620,600
241,600 Compaq Computer Corp. 6,342,000 LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.01%)
21,800 Comverse Technology, Inc. + ^ 1,991,975 15,200 Louisiana-Pacific Corp. 171,000
--------------
5,900 Cummins Engine Co., Inc. ^ 192,119
33,400 Deere & Co. 1,388,187 MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
365,800 Dell Computer Corp. + ^ 15,775,125 PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (1.98%)
29,100 Dover Corp. 1,353,150 7,300 Bard (C.R.), Inc. 333,062
145,100 EMC Corp. + 16,876,944 7,600 Bausch & Lomb, Inc. ^ 528,200
45,100 Gateway, Inc. + ^ 2,232,450 35,800 Becton, Dickinson and Co. 1,044,912
143,300 Hewlett-Packard Co. 17,213,913 16,100 Biomet, Inc. 580,606
257,100 IBM Corp. 27,590,044 59,100 Boston Scientific Corp. + ^ 1,514,437
23,300 Ingersoll-Rand Co. 1,061,606 45,000 Eastman Kodak Co. 2,688,750
18,200 Lexmark International Group, Inc. + 1,269,450 43,900 Guidant Corp. + 2,222,438
8,500 McDermott International, Inc. 85,000 112,900 Honeywell, Inc. 6,174,219
5,300 Milacron, Inc. 83,806 12,100 Johnson Controls, Inc. 688,944
17,700 Pall Corp. ^ 371,700 26,100 KLA-Tencor Corp. + 1,293,581
37,800 Pitney Bowes, Inc. 1,644,300 170,300 Medtronic, Inc. 8,791,737
32,400 Seagate Technology, Inc. + 1,879,200 6,500 Millipore Corp. 470,438
26,200 Silicon Graphics, Inc. + 173,575 29,400 PE Corp - PE Biosystems Group 1,631,700
84,500 Solectron Corp. + 2,793,781 6,400 Polaroid Corp. ^ 122,800
8,800 Timken Co. ^ 166,100 48,300 Raytheon Co., Class B 1,132,031
44,200 Unisys Corp. + 1,198,925 12,000 St. Jude Medical, Inc. + 431,250
-------------
172,830,000 6,800 Tektronix, Inc. ^ 363,800
-------------
24,400 Teradyne, Inc. + 2,098,400
22,600 Thermo Electron Corp. + ^ 419,513
94,800 Xerox Corp. 2,571,450
--------------
35,102,268
--------------
20 WELLS FARGO CORE TRUST
<PAGE>
--------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MAY 31, 2000
--------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
------------ -------------------------------- ------------- --------- -------------------------------- --------------
METAL MINING (0.14%) PAPER & ALLIED PRODUCTS (1.14%)
56,200 Barrick Gold Corp. ^ $ 1,015,112 16,100 Avery Dennison Corp. ^ $ 986,125
23,300 Freeport-McMoran Inc., Class B + 214,069 7,400 Bemis Co., Inc. 254,375
37,100 Homestake Mining Co. 250,425 8,100 Boise Cascade Corp. 235,912
23,900 Newmont Mining Corp. ^ 551,194 13,700 Champion International Corp. 1,000,100
46,400 Placer Dome, Inc. 382,800 30,800 Fort James Corp. 696,850
-------------
2,413,600 24,400 Georgia-Pacific Group ^ 799,100
------------- 21,300 IKON Office Solutions, Inc. 106,500
MINING & QUARRYING OF NONMETALLIC MINERALS, 59,000 International Paper Co. ^ 2,053,938
EXCEPT FUELS (0.04%) 79,200 Kimberly-Clark Corp. 4,791,600
14,300 Vulcan Materials Co.^ 668,525 14,700 Mead Corp. ^ 452,944
-------------
56,900 Minnesota Mining and Manufacturing Co4,879,175
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.74%) 24,500 Pactiv Corp. + 218,969
25,000 Hasbro, Inc. 409,375 11,900 Sealed Air Corp. + ^ 666,400
12,500 ITT Industries, Inc. ^ 432,031 7,900 Temple-Inland, Inc. ^ 392,531
60,000 Mattel, Inc. 813,750 14,300 Westvaco Corp. ^ 430,788
1,200 NACCO Industries, Inc. 45,300 33,500 Weyerhaeuser Co. ^ 1,662,438
241,200 Tyco International Ltd. 11,351,475 16,000 Willamette Industries, Inc. 520,000
------------- --------------
13,051,931 20,147,745
------------- --------------
MISCELLANEOUS RETAIL (0.40%) PERSONAL SERVICES (0.02%)
20,000 Bed Bath & Beyond, Inc. + 736,250 14,000 H&R Block, Inc. 432,250
--------------
5,600 Longs Drug Stores, Inc. ^ 113,050
47,000 Office Depot, Inc. + 331,938 PETROLEUM REFINING & RELATED INDUSTRIES (4.71%)
36,900 Rite Aid Corp. ^ 255,994 12,900 Amerada Hess Corp. 856,237
67,000 Staples, Inc. + 988,250 10,100 Ashland, Inc. 352,869
34,300 Toys 'R' Us Inc. + ^ 540,225 93,600 Chevron Corp. 8,652,150
143,500 Walgreen Co. ^ 4,071,812 89,300 Conoco, Inc., Class B 2,545,050
-------------
7,037,519 492,500 Exxon Corp. 41,031,406
------------- 13,600 Kerr-McGee Corp. 811,750
MOTION PICTURES (0.07%) 36,100 Phillips Petroleum Co. 2,066,725
31,000 Unicom Corp. 1,292,312 305,800 Royal Dutch Petroleum Co. ^ 19,093,388
------------- 12,800 Sunoco, Inc. ^ 413,600
MOTOR FREIGHT TRANSPORTATION (0.08%) 78,900 Texaco, Inc. ^ 4,531,819
41,300 FDX Corp. + ^ 1,460,987 20,600 Tosco Corp. 630,875
------------- 34,600 Unocal Corp. 1,329,937
NONDEPOSITORY CREDIT INSTITUTIONS (2.67%) 44,300 USX-Marathon Group, Inc. 1,204,406
--------------
191,400 American Express Co. 10,299,713 83,520,212
103,900 Associates First Capital Corp. 2,850,756 --------------
28,100 Capital One Financial Corp. 1,327,725 PHARMACEUTICAL PREPARATIONS (1.09%)
46,700 Conseco, Inc. ^ 291,875 186,200 American Home Products Corp. 10,031,525
16,200 Countrywide Credit Industries, Inc. 498,150 145,700 Amgen, Inc. + 9,270,162
--------------
146,100 Fannie Mae 8,784,262 19,301,687
--------------
99,200 Freddie Mac 4,414,400
67,100 Household International, Inc. 3,153,700 PRIMARY METAL INDUSTRIES (0.41%)
114,300 MBNA Corp. 3,186,113 31,200 Alcan Aluminum Ltd. ^ 1,023,750
22,700 SLM Holding Corp. 764,706 62,040 Alcoa, Inc. 3,625,463
162,500 Morgan Stanley Dean Witter & Co. 11,689,844 11,900 Allegheny Technologies, Inc. 268,494
-------------
47,261,244 18,700 Bethlehem Steel Corp. + 72,463
------------- 17,900 Engelhard Corp. 312,131
OIL & GAS EXTRACTION (0.74%) 27,400 Inco Ltd. 445,250
18,200 Anadarko Petroleum Corp. ^ 965,737 12,400 Nucor Corp. 482,050
16,200 Apache Corp. ^ 986,175 11,600 Phelps Dodge Corp. ^ 520,550
31,000 Burlington Resources, Inc. ^ 1,418,250 12,600 USX-U.S. Steel Group, Inc. ^ 284,287
52,400 Occidental Petroleum Corp. 1,241,225 12,700 Worthington Industries, Inc. 153,987
--------------
13,200 Rowan Cos., Inc. + 410,025 7,188,425
--------------
78,400 Schlumberger Ltd. ^ 5,767,300
29,800 Transocean Sedco Forex, Inc. ^ 1,465,788
35,900 Union Pacific Resources Group, Inc. ^ 850,381
-------------
13,104,881
21 WELLS FRAGO CORE TRUST
<PAGE>
--------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MAY 31, 2000
--------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
------------ -------------------------------- ------------- --------- -------------------------------- --------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (2.12%) TEXTILE MILL PRODUCTS (0.01%)
9,200 American Greetings Corp. ^ $ 171,350 4,700 Russell Corp. ^ $ 104,575
10,500 Deluxe Corp. 259,219 2,500 Springs Industries, Inc., Class A ^ 118,750
--------------
12,800 Dow Jones & Co., Inc. 870,400 223,325
39,700 Gannett Co., Inc. 2,570,575 --------------
11,100 Knight Ridder, Inc. ^ 588,300 TOBACCO PRODUCTS (0.50%)
28,000 McGraw-Hill Cos., Inc. 1,440,250 337,400 Philip Morris Cos., Inc. 8,814,575
7,300 Meredith Corp. ^ 222,194 --------------
24,400 New York Times Co. 936,350 TRANSPORTATION BY AIR (0.19%)
18,000 R.R. Donnelley & Sons Co. 444,375 21,100 AMR Corp. + 601,350
183,400 Time Warner, Inc. ^ 14,477,138 18,400 Delta Airlines, Inc. ^ 946,450
8,500 Times Mirror Co.^ 820,250 71,900 Southwest Airlines Co. 1,379,581
33,900 Tribune Co. ^ 1,305,150 10,200 US Airways Group, Inc. + ^ 433,500
--------------
217,448 Viacom, Inc., Class B* + ^ 13,481,776 3,360,881
------------- --------------
37,587,327
-------------
TRANSPORTATION EQUIPMENT (1.98%)
RAILROAD TRANSPORTATION (0.32%) 123,900 Boeing Co. 4,839,844
65,200 Burlington Northern Santa Fe Corp. 1,540,350 23,500 Dana Corp. ^ 606,594
31,100 CSX Corp. 676,425 80,600 Delphi Automotive Systems Corp. 1,455,838
15,800 Kansas City Southern Industries, Inc.1,062,550 10,500 Eaton Corp. 761,906
54,400 Norfolk Southern Corp. 969,000 172,300 Ford Motor Co. 8,367,319
35,400 Union Pacific Corp. 1,497,862 28,700 General Dynamics Corp. ^ 1,695,094
-------------
5,746,187 79,000 General Motors Corp. ^ 5,579,375
-------------
43,000 Harley-Davidson, Inc. 1,601,750
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.30%) 56,500 Lockheed Martin Corp. 1,384,250
5,700 Armstrong Holdings, Inc. ^ 97,969 9,000 Navistar International Corp. + 289,125
10,800 Cooper Tire & Rubber Co. 130,275 9,900 Northrop Grumman Corp. 758,588
22,300 Goodyear Tire & Rubber Co. ^ 554,712 11,200 PACCAR, Inc. 469,000
42,900 Illinois Tool Works, Inc. ^ 2,490,881 27,000 Rockwell International Corp. 1,107,000
39,400 Nike, Inc., Class B 1,689,275 21,200 Textron, Inc. 1,330,300
8,000 Reebok International Ltd. + 111,000 17,300 TRW, Inc. 839,050
8,200 Tupperware Corp. ^ 180,912 67,700 United Technologies Corp. 4,091,619
------------- --------------
5,255,024 35,176,652
------------- --------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES TRANSPORTATION SERVICES (0.03%)
& SERVICES (0.80%) 18,500 Sabre Holdings Corp. 531,875
16,200 Bear Stearns Cos., Inc. 637,875 --------------
175,500 Charles Schwab Corp. 5,045,625 WATER TRANSPORTATION (0.13%)
35,400 Franklin Resources, Inc. 1,062,000 88,000 Carnival Corp. 2,387,000
17,100 Lehman Brothers Holding, Inc. 1,319,906 --------------
52,900 Merrill Lynch & Co., Inc. 5,217,263 WHOLESALE TRADE-DURABLE GOODS (1.07%)
20,400 Paine Webber Group, Inc. 916,725 25,400 Genuine Parts Co. ^ 606,425
-------------
14,199,394 13,300 Grainger (W.W.), Inc. 531,169
-------------
198,400 Johnson & Johnson 17,756,800
4,100 Potlatch Corp. ^ 155,288
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (0.45%) 19,049,682
--------------
39,400 Corning, Inc. ^ 7,621,437
7,800 Owens Corning 120,412 WHOLESALE TRADE-NONDURABLE GOODS (0.47%)
21,400 Owens-Illinois, Inc. + ^ 240,750 40,100 Cardinal Health, Inc. 2,601,488
-------------
7,982,599 72,500 Safeway, Inc. + ^ 3,344,063
------------- 19,900 SUPERVALU, Inc. ^ 414,169
47,100 Sysco Corp. 1,975,256
--------------
8,334,976
--------------
Total Common Stocks (cost $1,088,948,119) 1,728,975,912
--------------
</TABLE>
22 WELLS FARGO CORE TRUST
<PAGE>
----------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
MAY 31, 2000
----------------------------------------------------------------------
Face Amount Security Description Value
------------------- ------------------------------- ------------------
TIME DEPOSITS (2.19%)
38,898,518 Banque Bruxelles Lam, 6.83%, 6/1/00 $ 38,898,518
(Cost $38,898,518) ---------------
U.S. TREASURY BILLS (0.15%)
2,805,000 6.29% yield, 2/1/01 ++ 2,689,125
(Cost $2,693,410) ---------------
TOTAL INVESTMENTS (99.89%)
(Cost $1,130,540,047) 99.89% $ 1,770,563,555
Other Assets and Liabilities, Net 0.11% 1,922,899
---------- -------------------
TOTAL NET ASSETS 100.00% $1,772,486,454
========== ===================
Financial Futures Contracts ++
Unrealized
Position Contracts Index Gain
-------------------------------------------------- -------------------
Long 116 S&P 500 Futures, Expiring $ 452,200
June 16, 2000
(notional value $41,243,800)
----------------------------------------------------------------------
+ Non-income earning securities.
^ Part or all of this investment is on loan.
++ As of May 31, 2000, $2,805,000 of U.S. Treasury Bills, 2/1/01, with a
market value of $2,689,125 were pledged to cover margin requirements for
open futures contracts.
23 WELLS FARGO CORE TRUST
<PAGE>
(This page intentionally left blank)
<PAGE>
ANNUAL REPORT
SEPTEMBER 30, 1999
INDEX PORTFOLIO
CORE TRUST (DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
To the Board of Trustees and Partners
Core Trust (Delaware)
We have audited the accompanying statement of assets and liabilities of
Index Portfolio of Core Trust (Delaware), including the schedule of investments,
as of September 30, 1999, and the related statements of operations for the
periods presented on page 24, statements of changes in net assets for the
periods presented on page 25 and financial highlights for the periods presented
on page 26. These financial statements and financial highlights are the
responsibility of the Portfolio's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits. The statement of changes in net assets and the financial highlights for
all periods ending prior to June 1, 1998 were audited by other auditors, whose
report dated July 21, 1998 expressed an unqualified opinion on those financial
statements and financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1999, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the Index Portfolio as of September 30, 1999, the results of its
operations, changes in its net assets and financial highlights for each of the
periods indicated in the first paragraph above, in conformity with generally
accepted accounting principles.
/s/ KPMG LLP
Boston, Massachusetts
November 18, 1999
26 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INDEX
PORTFOLIO
-----------------
ASSETS
Investments (Note 2)
Investments, at cost $ 1,060,009,766
Net unrealized appreciation 525,192,203
-----------------
Total investments, at value 1,585,201,969
Collateral for securities loaned (Notes 2 and 6) 259,210,830
Receivable from daily variation margin on futures contracts (Note 2) 448,350
Receivable for investments sold 34,899
Receivable for dividends, interest and other receivables 1,769,945
Organization costs, net of amortization (Note 2) 725
-----------------
Total Assets 1,846,666,718
-----------------
LIABILITIES
Payable for investments purchased 3,652,909
Payable for securities loaned (Notes 2 and 6) 259,210,830
Payable to custodian (Note 3) 14,573
Payable to investment adviser and affiliates (Note 3) 200,159
Accrued expenses and other liabilities 29,585
-----------------
Total Liabilities 263,108,056
-----------------
NET ASSETS $1,583,558,662
=================
</TABLE>
See Notes to Financial Statements. 27 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
PERIOD ENDED SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INDEX
PORTFOLIO
--------------------------------------
Four Months Year
Ended Ended
September 30, 1999 May 31, 1999
INVESTMENT INCOME
Dividend income $ 7,134,863 $ 21,699,973
Interest income 848,084 1,826,068
Securities lending income (Note 2) 92,418 412,363
------------------ ------------------
Total Investment Income 8,075,365 23,938,404
------------------ ------------------
EXPENSES
Advisory (Note 3) 849,293 2,351,029
Administration (Note 3) 283,098 783,676
Custody (Note 3) 61,620 171,735
Accounting (Note 3) 50,000 153,500
Legal 3,206 5,734
Audit 20,000 36,331
Trustees 1,010 2,934
Pricing 15,963 28,971
Amortization of organization costs (Note 2) 2,024 6,072
Miscellaneous 5,591 35,927
------------------ ------------------
Total Expenses 1,291,805 3,575,909
Fees waived (Note 4) (286,572) (779,240)
------------------ ------------------
Net Expenses 1,005,233 2,796,669
------------------ ------------------
NET INVESTMENT INCOME 7,070,132 21,141,735
------------------ ------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain from
Securities 14,370,473 21,545,068
Financial futures transactions 3,547,453 4,808,254
------------------ ------------------
Net Realized Gain from Investments 17,917,926 26,353,322
------------------ ------------------
Net Change in Unrealized Appreciation (Depreciation) of
Securities (246,554,792) 248,662,572
Financial futures transactions (510,977) (1,352,724)
------------------ ------------------
Net Change in Unrealized Appreciation (Depreciation) of Investments (247,065,769) 247,309,848
------------------ ------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (229,147,843) 273,663,170
------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ($222,077,711) $294,804,905
================== ==================
</TABLE>
See Notes to Financial Statements. 28 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS OR PERIODS ENDED MAY 31, 1998, MAY 31, 1999 AND SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INDEX
PORTFOLIO
-----------------
NET ASSETS, MAY 31, 1997 $455,992,618
-----------------
OPERATIONS
Net investment income 18,212,835
Net realized gain from investments 40,577,843
Net change in unrealized appreciation of investments 232,315,725
-----------------
Net Increase in Net Assets Resulting from Operations 291,106,403
-----------------
TRANSACTIONS IN INVESTORS' BENEFICAL INTERESTS
Contributions (Note 7) 791,000,962
Withdrawals (152,820,060)
-----------------
Net Increase from Transactions in Investors' Beneficial Interest 638,180,902
-----------------
Net Increase in Net Assets 929,287,305
-----------------
NET ASSETS MAY 31, 1998 (a) 1,385,279,923
-----------------
OPERATIONS
Net investment income 21,141,735
Net realized gain from investments 26,353,322
Net change in unrealized appreciation of investments 247,309,848
-----------------
Net Increase in Net Assets Resulting from Operations 294,804,905
-----------------
TRANSACTIONS IN INVESTORS' BENEFICAL INTERESTS
Contributions 338,399,367
Withdrawals (187,842,788)
-----------------
Net Increase from Transactions in Investors' Beneficial Interest 150,556,579
-----------------
Net Increase in Net Assets 445,361,484
-----------------
NET ASSETS MAY 31, 1999 1,830,641,407
-----------------
OPERATIONS
Net investment income 7,070,132
Net realized gain from investments 17,917,926
Net change in unrealized (depreciation) of investments (247,065,769)
-----------------
Net Decrease in Net Assets Resulting from Operations (222,077,711)
-----------------
TRANSACTIONS IN INVESTORS' BENEFICAL INTERESTS
Contributions 168,104,830
Withdrawals (193,109,864)
-----------------
Net Decrease from Transactions in Investors' Beneficial Interest (25,005,034)
-----------------
Net Decrease in Net Assets (247,082,745)
-----------------
NET ASSETS, SEPTEMBER 30, 1999 $1,583,558,662
=================
(a) Beginning of Period June 1, 1997
</TABLE>
See Notes to Financial Statements. 29 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
Ratios to Average
Net Assets (a)
------------------------------------------------
Net Portfolio
Investment Net Gross Turnover
Income Expenses Expenses (c) Rate
For Year or Period
June 1, 1999 to September 30, 1999 1.25% 0.18% 0.23% 11%
June 1, 1998 to May 31, 1999 1.35% 0.18% 0.23% 4%
June 1, 1997 to May 31, 1998 1.60% 0.19% 0.24% 7%
June 1, 1996 to May 31, 1997 2.03% 0.11% 0.31% 7%
November 1, 1995 to May 31, 1996 2.35% 0.17% 0.32% 7%
November 11, 1994(b) to October 31, 1995 2.42% 0.17% 0.33% 8%
</TABLE>
----------------------------------------------
(a) Ratios for periods of less than one year are annualized.
(b) Commencement of operations.
(c) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio in the absence of any waivers and reimbursements (Note 4).
See Notes to Financial Statements. 30 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Core Trust (Delaware) ("Core Trust") is organized as a Delaware business trust
and is registered as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "Act"). Core Trust currently has
twenty-one separate investment portfolios. These financial statements relate to
Index Portfolio (the "Portfolio"), which commenced operations on November 11,
1994. Interests in the Portfolio are sold in private placement transactions
without any sales charges to qualified investors, 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,
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 summarizes the significant accounting policies of the
Portfolio:
SECURITIES VALUATION - The Portfolio determines its net asset value at 4:00 PM,
Eastern Time, on each Portfolio business day. Short-term securities that mature
in sixty days or less are valued at amortized cost. Equity securities for which
market quotations are readily available are valued using the last reported sales
price provided by independent pricing services. If no sales are reported, the
mean of the last bid and ask price is used. If no mean price is available, the
last bid price is used. Fixed income and other securities, for which market
quotations are readily available, are valued using the mean of the last bid and
ask price provided by independent pricing services. If no mean price is
available, the last bid price is used. In the absence of readily available
market quotations, securities are valued at fair value determined in accordance
with procedures adopted by the Board of Trustees.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - Investment transactions are
accounted for on the trade date. Dividend income is recorded on the ex-dividend
date. Interest income is recorded on the accrual basis and includes amortization
of premium and accretion of discount. Identified cost of investments sold is
used to determine realized gains and losses for both financial statement and
federal income tax purposes.
FUTURES CONTRACTS - The Portfolio may invest in futures contracts to enhance
return and hedge against a decline in the value of securities. A futures
contract is an agreement between two parties to buy and sell a security at a set
price on a future date. Upon entering into such a contract, the Portfolio is
required to pledge to the broker an amount of cash or securities equal to the
minimum "initial margin" requirements of the exchange on which the contract is
traded. Pursuant to the contract, the Portfolio agrees to receive from, or pay
to, the broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as "variation margin" and are
recorded by the Portfolio as unrealized gain or loss. When the contract is
closed, the Portfolio records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed. The potential risk to the Portfolio is that the change in
value of the underlying securities may not correlate to the change in value of
the contracts.
FEDERAL TAXES - The Portfolio is not required to pay federal income taxes on its
net investment income and net capital gain as it is treated as a partnership for
federal income tax purposes. All interest, dividends, gain and loss of the
Portfolio is deemed to have been "passed through" to the interest holders in
proportion to their holdings of the Portfolio regardless of whether such
interest, dividends or gain have been distributed by the Portfolio.
EXPENSE ALLOCATION - Core Trust accounts separately for the assets and
liabilities and operations of each Portfolio. Expenses that are directly
attributable to more than one Portfolio are allocated among the respective
Portfolios in proportion to each Portfolio's net assets.
ORGANIZATION COSTS - The costs incurred by the 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
the Portfolio's operations.
REPURCHASE AGREEMENTS - The Portfolio may invest in repurchase agreements. The
Portfolio, through its custodian, receives delivery of the underlying
collateral, whose market value must always exceed the repurchase price. In the
event of default, the Portfolio may have difficulties with the disposition of
the collateral.
SECURITY LOANS - The Portfolio may receive fees or retain a portion of interest
on the investment securities or cash received as collateral for lending
securities. The Portfolio also continues to receive interest or dividends on the
securities loaned. Security loans are secured by collateral whose market value
must always exceed the market value of the securities loaned plus accrued
interest. Gain or loss in the market price of the securities loaned that may
occur during the term of the loan are reflected in the value of the Portfolio.
31 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER - The investment adviser of the Portfolio is Norwest
Investment Management, Inc. ("Adviser"), a wholly owned subsidiary of Norwest
Bank Minnesota, N.A. ("Norwest"). Norwest is a subsidiary of Wells Fargo &
Company. The Adviser receives an advisory fee from the Portfolio at an annual
rate of 0.15% of the Portfolio's average daily net assets.
ADMINISTRATION AND OTHER SERVICE PROVIDERS - Forum Administrative Services, LLC
("FAdS") is the administrator to Core Trust and receives a fee with respect to
the Portfolio at an annual rate of 0.05% of the Portfolio's average daily net
assets.
Norwest serves as the custodian for the Portfolio. For its custody services,
Norwest receives a fee with respect to the Portfolio at an annual rate of 0.02%
of the first $100 million of the Portfolio's average daily net assets, .015% of
the daily net assets of the Portfolio with respect to the next $100 million and
.01% of the average daily net assets of the Portfolio in excess of $200 million.
Norwest also receives transaction fees for providing services in connection with
the securities lending program.
Forum Accounting Services, LLC, an affiliate of FAdS, provides portfolio
accounting and interest holder recordkeeping services to the Portfolio.
NOTE 4. WAIVERS AND EXPENSE REIMBURSEMENTS
For the four months ended September 30, 1999, fees waived by the Portfolio's
service providers were as follows: FAdS waived fees of $283,098 and reimbursed
expenses of $3,474. For the year ended May 31, 1999, FAdS waived fees of
$779,240.
NOTE 5. SECURITIES TRANSACTIONS
The cost of purchases and the proceeds from sales (including maturities) of
securities (excluding short-term investments) during the four month period ended
September 30, 1999, were $190,282,208 and $179,041,589, respectively. The cost
of purchases and the proceeds from sales (including maturities) of securities
(excluding short-term investments) during the year ended May 31, 1999, were
$208,621,074 and $52,255,404, respectively. The federal tax cost basis of
investments and related gross unrealized appreciation and depreciation for
federal income tax purposes as of September 30, 1999 was $1,061,548,635,
$600,370,707, and $76,717,373, respectively.
NOTE 6. PORTFOLIO SECURITIES LOANED
As of September 30, 1999, the Portfolio had loaned portfolio investments in
return for securities and cash collateral, which were invested in various
short-term fixed income securities. The risks to a Portfolio from securities
lending are that the borower may not provide additional collateral when required
or return the securities when due or when called for by the Portfolio. The value
of the securities on loan and the value of the related collateral were
$253,513,030 and $259,210,830 respectively.
NOTE 7. CONTRIBUTION OF SECURITIES
After the close of business on May 31, 1997, in connection with the commencement
of operations of certain portfolios of Core Trust on June 1, 1997, certain
investors contributed net assets and unrealized gain of $512,437,536 and
$115,520,269, respectively, to the Portfolio.
NOTE 8. PORTFOLIO REORGANIZATION
On April 22, 1999, the Board of Trustees of Core Trust approved the
reorganization of the Portfolio into a separate portfolio of Wells Fargo Core
Trust, another open-end registered management investment company. The Wells
Fargo Core Trust portfolio will have substantially similar investment objectives
and policies as its corresponding Norwest Portfolio. The reorganization is part
of a plan to centralize the management of the Norwest Portfolios and Norwest
Advantage Funds, the principal interestholder, under a common Board of Trustees.
Pursuant to Core Trust's Instrument, the reorganization does not require
interestholder approval.
32 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
COMMON STOCKS (97.8%)
Shares Security Description Value Shares Security Description Value
-------------- ------------------------------- --------------- ---------- ------------------------------- ---------------
AGRICULTURAL PRODUCTION-CROPS (0.1%) BUSINESS SERVICES - CONTINUED
47,800 Nabisco Group Holdings Corp. $ 717,000 52,300 Compuware Corp.*# $ 1,363,069
35,100 Pioneer Hi-Bred International, Inc. 1,397,419 72,200 Electronic Data Systems Corp. 3,822,088
---------------
2,114,419 21,100 Equifax, Inc. 593,437
---------------
62,800 First Data Corp. 2,755,350
AMUSEMENT & RECREATION SERVICES (0.5%) 45,800 IMS Health, Inc. 1,044,813
18,800 Harrah's Entertainment, Inc.* 521,700 41,300 Interpublic Group of Cos., Inc. 1,698,462
302,100 Walt Disney Co.*# 7,816,838 41,200 McKesson HBOC, Inc.# 1,194,800
---------------
8,338,538 747,500 Microsoft Corp.* 67,695,469
---------------
49,100 Novell, Inc.* 1,015,756
APPAREL & ACCESSORY STORES (0.5%) 26,000 Omnicom Group, Inc.# 2,058,875
125,600 Gap, Inc. 4,019,200 210,800 Oracle Corp.*# 9,591,400
20,500 Nordstrom, Inc. 553,500 39,400 Parametric Technology Co.* 531,900
31,400 Limited, Inc. 1,201,050 35,600 PeopleSoft, Inc.* 602,975
46,500 TJX Cos., Inc. 1,304,906 3,900 Shared Medical Systems Corp. 182,325
---------------
7,078,656 113,300 Sun Microsystems, Inc.* 10,536,900
---------------
25,500 UST, Inc. 769,781
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS 140,854,780
& SIMILAR MATERIALS (0.1%) ---------------
9,000 Liz Claiborne, Inc.# 279,000 CHEMICALS & ALLIED PRODUCTS (11.1%)
17,400 V.F. Corp. 539,400 222,800 Abbott Laboratories# 8,187,900
---------------
818,400 33,600 Air Products and Chemicals, Inc. 976,500
---------------
8,200 Alberto Culver Co. 189,625
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.0%) 9,700 Allergan, Inc. 1,067,000
7,700 Pep Boys - Manny, Moe & Jack 114,538 14,900 ALZA Corp.* 637,906
21,800 Autozone, Inc.* 611,762 38,200 Avon Products, Inc. 947,837
---------------
726,300 42,600 Baxter International, Inc.# 2,566,650
---------------
290,900 Bristol-Myers Squibb Co. 19,635,750
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.0%) 34,600 Clorox Co. 1,323,450
10,200 Ryder System, Inc. 207,825 85,400 Colgate-Palmolive Co.# 3,907,050
---------------
32,200 Dow Chemical Co.# 3,658,725
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & 155,200 E.I. du Pont de Nemours & Co. 9,447,800
OPERATIVE BUILDERS (0.0%) 11,500 Eastman Chemical Co. 460,000
8,700 Centex Corp. 257,194 19,000 Ecolab, Inc. 648,375
7,000 Kaufman & Broad Home Corp. 144,375 160,100 Eli Lilly & Co. 10,246,400
6,300 Pulte Corp. 137,025 4,700 FMC Corp.* 226,775
---------------
538,594 16,100 Goodrich (B.F.) Co. 466,900
---------------
8,600 Great Lakes Chemical Corp. 327,337
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE 15,500 Hercules, Inc. 443,687
HOME DEALERS (1.1%) 15,500 International Flavors & Fragrance, Inc.534,750
217,200 Home Depot, Inc. 14,905,350 196,900 Johnson & Johnson 18,090,188
55,900 Lowe's Cos., Inc. 2,725,125 10,400 Mallinckrodt, Inc. 313,950
---------------
17,630,475 343,500 Merck & Co., Inc. 22,263,094
--------------- 92,800 Monsanto Co. 3,311,800
BUSINESS SERVICES (8.9%) 567,500 Pfizer, Inc. 20,394,531
52,400 3COM Corp.* 1,506,500 74,200 Pharmacia & Upjohn, Inc.# 3,682,175
8,900 Adobe Systems, Inc. 1,010,150 25,400 PPG Industries, Inc. 1,524,000
162,300 America Online, Inc.*# 16,879,200 23,300 Praxair, Inc. 1,071,800
8,600 Autodesk, Inc. 188,125 194,600 Procter & Gamble Co. 18,243,750
90,600 Automatic Data Processing, Inc. 4,043,025 31,900 Rohm & Haas Co. 1,152,388
35,000 BMC Software, Inc.* # 2,504,687 215,100 Schering-Plough Corp. 9,383,737
25,500 Cabletron Systems, Inc. * 400,031 24,800 Sherwin-Williams Co. 519,250
105,500 Cendant Corp.* 1,872,625 14,800 Sigma Aldrich 469,900
21,200 Ceridian Corp.* 527,350 19,500 Union Carbide Corp. 1,107,844
78,700 Computer Associates International, 4,820,375 10,400 W.R. Grace & Co.* 167,050
Inc.
23,400 Computer Sciences Corp.* 1,645,312
See Notes to Financial Statements. 33 CORE TRUST(DELAWARE)
<PAGE>
-------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
-------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
----------- ------------------------------- --------------- ---------- ------------------------------- ---------------
CHEMICALS AND ALLIED PRODUCTS - CONTINUED DEPOSITORY INSTITIUTIONS (CONTINUED)
125,200 Warner-Lambert Co. $ 8,310,150 29,600 Wachovia Corp.# $ 2,327,300
14,000 Watson Pharmaceuticals, Inc.* 427,875 84,800 Washington Mutual, Inc.# 2,480,400
---------------
176,333,899 241,600 Wells Fargo Co.# 9,573,400
--------------- ---------------
95,876,773
---------------
COMMUNICATIONS (9.5%)
44,700 Alltel Corp. 3,145,762 EATING & DRINKING PLACES (0.7%)
161,000 Ameritech Corp. 10,817,187 19,400 Darden Restaurants, Inc. 379,512
468,000 AT&T Corp.# 20,358,000 198,400 McDonald's Corp. 8,531,200
227,400 Bell Atlantic Corp.# 15,306,862 22,500 Tricon Global Restaurants, Inc.* 921,094
276,100 BellSouth Corp.# 12,424,500 17,800 Wendy's International, Inc.# 469,475
---------------
103,200 CBS Corp.*# 4,773,000 10,301,281
20,400 CenturyTel, Inc. 828,750 ---------------
49,400 Clear Channel Communications, Inc.*# 3,945,825 ELECTRIC, GAS & SANITARY SERVICES (2.8%)
109,800 Comcast Corp., Class A *# 4,378,275 28,100 AES Corp. *# 1,657,900
112,070 Global Crossing Ltd.* 2,969,855 27,600 Allied Waste Industries, Inc.* 322,575
143,700 GTE Corp. 11,046,938 20,100 Ameren Corp. 760,031
10,400 King World Productions, Inc. * 390,000 28,300 American Electric Power Co. 965,737
274,300 MCI Worldcom, Inc.*# 19,715,313 23,400 Carolina Power & Light Co.# 827,775
88,800 MediaOne Group, Inc.* # 6,066,150 31,100 Central & Southwest Corp.# 656,987
48,600 Nextel Communications, Inc.* 3,295,687 23,300 CINergy Corp. 659,681
288,100 SBC Communications, Inc.# 14,711,106 17,300 CMS Energy Corp. 587,119
127,100 Sprint Corp. (FON Group) 6,895,175 31,300 Coastal Corp. 1,281,344
64,400 Sprint Corp. (PCS Group)*# 4,801,825 12,000 Columbia Energy Group 664,500
73,900 US West, Inc. 4,216,919 32,400 Consolidated Edison Co. 1,344,600
---------------
150,087,129 14,000 Consolidated Natural Gas Co. 873,250
--------------- 21,900 Constellation Energy Group 615,937
DEPOSITORY INSTITUTIONS (6.1%) 28,100 Dominion Resources, Inc.# 1,268,012
25,800 AmSouth Bancorp.# 604,687 21,200 DTE Energy Co. 765,850
253,000 Bank of America Corp.# 14,088,938 53,400 Duke Energy Corp. # 2,943,675
107,700 Bank of New York Co., Inc.# 3,601,219 3,900 Eastern Enterprises 181,106
171,800 Bank One Corp. 5,980,788 50,900 Edison International# 1,237,506
43,500 BankBoston Corp. 1,886,812 104,500 Enron Corp. 4,310,625
46,800 BB&T Corp.# 1,515,150 36,200 Entergy Corp.# 1,047,537
121,900 Chase Manhattan Corp. 9,188,212 34,300 FirstEnergy Corp. 874,650
22,900 Comerica, Inc. 1,159,312 14,400 Florida Progress Corp. 666,000
39,700 Fifth Third Bancorp 2,415,499 26,300 FPL Group, Inc. 1,324,863
140,100 First Union Corp. 4,982,306 18,400 GPU, Inc. 600,300
192,710 Firstar Corp.# 4,938,194 48,400 Laidlaw, Inc. 326,700
83,400 Fleet Boston Corp. 3,054,525 16,900 New Century Energies, Inc. 565,094
8,100 Golden West Financial Corp. 795,825 27,400 Niagara Mohawk Holdings, Inc.* 422,988
33,700 Huntington Bancshares, Inc. 895,156 6,900 Nicor, Inc. 256,594
25,700 J.P. Morgan & Co., Inc. 2,936,225 22,600 Northern States Power Co. 487,313
65,700 KeyCorp 1,695,881 4,600 Oneok, Inc. 139,438
75,300 Mellon Bank Corp. 2,541,375 56,200 Pacific Gas & Electric Co. 1,454,175
90,500 National City Corp. 2,415,219 43,500 PacifiCorp 875,438
16,300 Northern Trust Corp. 1,361,050 27,300 PECO Energy Co. 1,023,750
44,500 PNC Bank Corp. 2,344,594 5,200 People's Energy Corp. 182,975
32,800 Regions Financial Corp. 984,000 23,100 PP&L Resources, Inc. 625,144
15,300 Republic New York Corp. 939,994 32,100 Public Service Enterprise Group, Inc.1,239,863
24,500 SouthTrust Corp. 878,937 43,300 Reliant Energy, Inc. 1,171,806
23,600 State Street Corp. 1,525,150 35,200 Sempra Energy 732,600
25,900 Summit Bancorp 840,131 16,100 Sonat, Inc. 638,969
47,100 Suntrust Banks, Inc. 3,096,825 100,100 Southern Co.# 2,577,575
39,700 Synovus Financial Corp. 741,894 40,500 Texas Utilities Co. 1,511,156
107,200 U.S. Bancorp 3,236,100 90,700 Waste Management, Inc. 1,745,975
20,900 Union Planters Corp. 851,675 63,600 Williams Cos., Inc. 2,381,025
---------------
44,796,138
---------------
See Notes to Financial Statements. 34 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
----------- ------------------------------- --------------- ---------- ------------------------------- ---------------
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT & FOOD & KINDRED PRODUCTS (CONTINUED)
COMPONENTS, EXCEPT COMPUTER EQUIPMENT (10.9%) 62,200 Coca-Cola Enterprises, Inc.# $ 1,403,387
15,100 Adaptec, Inc. * $ 599,281 71,500 ConAgra, Inc. 1,613,219
19,800 ADC Telecommunications, Inc.*# 830,362 22,400 General Mills, Inc. 1,817,200
21,600 Advanced Micro Devices, Inc. * 371,250 52,500 Heinz (H.J.) Co. 2,257,500
12,000 Andrew Corp.* 208,500 20,400 Hershey Foods Corp.# 993,225
13,800 Cooper Industries, Inc. 645,150 59,300 Kellogg Co. 2,220,044
63,600 Emerson Electric Co. 4,018,725 214,200 PepsiCo, Inc. 6,479,550
480,400 General Electric Co. 56,957,425 19,600 Quaker Oats Co.# 1,212,750
25,400 General Instrucment Corp.* 1,222,375 47,400 Ralston-Ralston Purina Group 1,318,313
11,700 Harris Corp. 323,213 132,300 Sara Lee Corp. 3,100,781
484,500 Intel Corp. 36,004,406 63,300 Seagram Co. Ltd. # 2,880,150
21,600 LSI Logic Corp.* 1,112,400 83,700 Unilever NV - NY Shares 5,702,062
448,800 Lucent Technologies, Inc. 29,115,900 17,000 Wrigley (Wm) Jr. Co. 1,169,813
---------------
12,800 Maytag Corp. 426,400 60,836,450
36,700 Micron Technology, Inc.*# 2,442,844 ---------------
88,900 Motorola, Inc.# 7,823,200 FOOD STORES (0.6%)
24,600 National Semiconductor Corp.* 750,300 61,600 Albertson's, Inc.# 2,437,050
5,900 National Service Industries 185,850 5,600 Great Atlantic & Pacific Tea Co. 169,750
10,800 Network Appliance, Inc.* 773,550 121,500 Kroger Co.*# 2,680,594
194,400 Nortel Networks Corp.# 9,914,400 74,700 Safeway, Inc.* 2,843,269
23,500 QUALCOMM, Inc.*# 4,445,906 21,800 Winn-Dixie Stores, Inc. 647,187
---------------
11,200 Scientific-Atlanta, Inc. 555,100 8,777,850
---------------
57,300 Tellabs, Inc.*# 3,262,519
115,100 Texas Instruments, Inc.# 9,466,975 FURNITURE & FIXTURES (0.1%)
8,300 Thomas & Betts Corp.# 423,300 64,900 Masco Corp. 2,011,900
11,000 Whirlpool Corp.# 718,437 ---------------
---------------
172,597,768 GENERAL MERCHANDISE STORES (3.0%)
---------------
16,100 Consolidated Stores Corp.* 355,206
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & 32,300 Costco Wholesale Corp.* # 2,325,600
RELATED SERVICES (0.1%) 64,800 Dayton Hudson Corp. 3,892,050
23,600 Dun & Bradstreet Corp. 705,050 15,700 Dilliards, Inc. 318,906
6,700 EG &G, Inc. 266,744 32,900 Dollar General Corp. 1,015,787
36,000 Paychex, Inc. 1,228,500 30,500 Federated Department Stores, Inc.* # 1,332,469
---------------
2,200,294 10,400 Harcourt General, Inc. 432,900
--------------- 38,600 J.C. Penney Co., Inc. 1,326,875
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & 72,300 Kmart Corp.* 845,006
TRANSPORTATION EQUIPMENT (0.6%) 23,800 Kohl's Corp.* 1,573,775
4,500 Ball Corp. 198,281 48,900 May Department Stores Co. 1,781,794
9,900 Crane Co. 222,131 55,700 Sears, Roebuck and Co. 1,747,588
17,900 Crown Cork & Seal Co., Inc. 434,075 651,800 Wal-Mart Stores, Inc. 31,001,238
---------------
20,800 Danaher Corp. 1,095,900 47,949,194
24,400 Fortune Brands, Inc. 786,900 ---------------
158,900 Gillette Co. 5,392,669 HEALTH SERVICES (0.2%)
15,900 Parker-Hannifin Corp. 712,519 82,600 Columbia HCA Healthcare Corp. 1,750,087
9,600 Snap-On, Inc. 312,000 60,800 HEALTHSOUTH Corp.* 368,600
13,000 Stanley Works 327,438 15,700 Manor Care, Inc.* 269,844
---------------
9,481,913 45,500 Tenet Healthcare Corp.* 799,094
---------------
---------------
3,187,625
---------------
FOOD & KINDRED PRODUCTS (3.8%)
5,400 Adolph Coors Co. 292,275 HEAVY CONSTRUCTION OTHER THAN BUILDING
68,500 Anheuser-Busch Cos., Inc.# 4,799,281 CONSTRUCTION CONTRACTORS (0.2%)
90,400 Archer Daniels Midland Co. 1,101,750 11,100 Fluor Corp. 446,775
40,900 Bestfoods, Inc. 1,983,650 6,000 Foster Wheeler Corp. 72,375
10,000 Brown-Forman Corp. 623,750 64,600 Halliburton Co. 2,648,600
---------------
63,600 Campbell Soup Co. 2,488,350 3,167,750
---------------
361,600 Coca-Cola Co. 17,379,400
See Notes to Financial Statements. 35 CORE TRUST(DELAWARE)
<PAGE>
-------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
-------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
----------- ------------------------------- --------------- ---------- ------------------------------- ---------------
HOLDING & OTHER INVESTMENT OFFICES (0.1%) INSURANCE CARRIERS (4.2%)
47,900 Conseco, Inc.# $ 925,069 20,600 Aetna Life & Casualty, Inc. $ 1,014,550
---------------
38,900 AFLAC, Inc. 1,628,937
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.2%) 116,900 Allstate Corp. 2,915,194
29,800 Best Buy Co., Inc.* 1,849,462 36,500 American General Corp. 2,306,344
29,400 Circuit City Stores 1,240,313 226,800 American International Group, Inc. 19,717,426
---------------
3,089,775 25,800 Chubb Corp. 1,285,162
--------------- 29,200 CIGNA Corp.# 2,270,300
HOTELS, ROOMING HOUSES, CAMPS & OTHER 24,200 Cincinnati Financial Corp. 908,257
LODGING PLACES (0.1%) 494,600 Citigroup, Inc. 21,762,400
37,300 Hilton Hotels Corp. 368,337 33,100 Hartford Financial Services Group 1,352,962
36,400 Marriott International - Class A 1,189,825 15,400 Jefferson-Pilot Corp. 973,087
29,100 Mirage Resorts, Inc.* 409,219 29,100 Lincoln National Corp. 1,093,069
---------------
1,967,381 15,800 Loews Corp. 1,108,963
--------------- 14,600 MBIA, Inc. 680,725
INDUSTRIAL & COMMERCIAL MACHINERY & 16,000 Mgic Investment Corp. 764,000
COMPUTER EQUIPMENT (9.7%) 10,700 Progressive Corp. 874,056
23,600 Apple Computer, Inc.* # 1,494,175 20,800 Providian Financial Corp. 1,647,100
55,000 Applied Materials, Inc.* 4,283,125 19,300 Safeco Corp.# 540,400
48,200 Baker Hughes, Inc. 1,397,800 33,200 St. Paul Cos., Inc.# 913,000
12,700 Black & Decker Corp. 580,231 19,500 Torchmark Corp. 504,563
3,400 Briggs & Stratton Corp. 198,475 25,400 United Healthcare Corp. 1,236,663
13,500 Brunswick Corp. 335,813 35,000 UnumProvident Corp. 1,030,313
11,400 Case Corp. 567,862 9,600 Wellpoint Health Networks, Inc.* 547,200
---------------
52,100 Caterpillar, Inc. 2,855,731 67,074,671
---------------
5,400 Cincinnati Milacron, Inc. 95,850
476,200 Cisco Systems, Inc.* 32,649,462 LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.0%)
249,000 Compaq Computer Corp.# 5,711,437 15,700 Louisiana-Pacific Corp. 245,313
---------------
6,100 Cummins Engine Co., Inc. 303,856
7,400 Data General Corp.* 155,862 MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
34,200 Deere & Co. 1,323,113 PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (1.8%)69
372,100 Dell Computer Corp.* 15,558,431 7,500 Bard (C.R.), Inc. 352,969
30,500 Dover Corp. 1,246,688 8,400 Bausch & Lomb, Inc. 553,875
148,400 EMC Corp.*# 10,601,325 36,700 Becton, Dickinson and Co. 1,029,894
45,900 Gateway 2000, Inc.*# 2,039,681 16,500 Biomet, Inc. 434,156
148,400 Hewlett-Packard Co. 13,652,800 60,600 Boston Scientific Corp.* 1,496,062
265,000 IBM Corp. 32,164,375 46,400 Eastman Kodak Co. 3,500,300
24,200 Ingersoll-Rand Co. 1,329,488 44,300 Guidant Corp.* 2,375,587
18,900 Lexmark International Group, Inc.* 1,521,450 18,700 Honeywell, Inc. 2,081,544
8,700 McDermott International, Inc. 176,175 12,500 Johnson Controls, Inc. 828,906
18,200 Pall Corp. 422,013 12,900 KLA-Tencor Corp.* 838,500
39,200 Pitney Bowes, Inc. 2,388,750 171,800 Medtronic, Inc. 6,098,900
32,600 Seagate Technology, Inc.* 1,004,488 6,600 Millipore Corp. 247,913
27,600 Silicon Graphics, Inc.* 301,875 14,900 PE Corp - PE Biosystems Group 1,076,525
39,500 Solectron Corp.* 2,836,594 6,500 Polaroid Corp. 169,000
28,300 Tandy Corp. 1,462,756 49,500 Raytheon Co., Class B 2,456,438
25,000 Tenneco Inc. 425,000 12,400 St. Jude Medical, Inc.* 390,600
9,100 Timken Co. 146,737 6,900 Tektronix, Inc. 231,150
122,500 Tyco International Ltd. 12,648,125 23,100 Thermo Electron Corp.* 310,406
44,800 Unisys Corp.* 2,021,600 97,100 Xerox Corp.# 4,072,131
--------------- ---------------
153,901,143 28,544,856
--------------- ---------------
INSURANCE AGENTS, BROKERS & SERVICE (0.3%) METAL MINING (0.2%)
37,500 Aon Corp. 1,108,594 57,100 Barrick Gold Corp. 1,241,925
24,500 Humana, Inc.* 168,437 13,200 Cyprus Amax Minerals Co. 259,050
38,700 Marsh & McLennan Cos., Inc. 2,650,950 23,900 Freeport-McMoran Inc., Class B * 371,944
---------------
3,927,981 38,100 Homestake Mining Co. 350,044
--------------- 24,500 Newmont Mining Corp.# 633,937
See Notes to Financial Statements. 36 CORE TRUST(DELAWARE)
<PAGE>
-------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
-------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Shares Security Description Value
----------- ------------------------------- --------------- ---------- ------------------------------- ---------------
METAL MINING (CONTINUED) PAPER & ALLIED PRODUCTS (CONTINUED)
47,700 Placer Dome, Inc. $ 709,538 14,100 Champion International Corp. $ 724,387
---------------
2,856,900 32,400 Fort James Corp. 864,675
--------------- 25,100 Georgia-Pacific Group# 1,016,550
MINING & QUARRYING OF NONMETALLIC MINERALS, 21,800 Ikon Office Solutions, Inc. 232,987
EXCEPT FUELS (0.0%) 60,600 International Paper Co. 2,912,587
14,700 Vulcan Materials Co. 538,388 78,000 Kimberly-Clark Corp. 4,095,000
--------------- 15,000 Mead Corp. 515,625
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.2%) 59,000 Minnesota Mining and
28,500 Hasbro, Inc. 610,969 Manufacturing Co. 5,667,688
12,900 ITT Industries, Inc. 410,381 8,200 Temple-Inland, Inc. 496,100
5,000 Jostens, Inc. 95,625 14,700 Westvaco Corp. 376,688
61,500 Mattel, Inc.# 1,168,500 29,500 Weyerhaeuser Co.# 1,699,938
1,200 NACCO Industries, Inc. 83,850 16,300 Willamette Industries, Inc. 702,938
--------------- ---------------
2,369,325 20,747,725
--------------- ---------------
MISCELLANEOUS RETAIL (0.6%) PERSONAL SERVICES (0.1%)
20,450 Bed Bath & Beyond, Inc.* 714,472 14,300 H&R Block, Inc. 621,156
57,400 CVS Corp. 2,342,638 39,800 Service Corp. International 420,388
---------------
5,800 Longs Drug Stores, Inc. 173,275 1,041,544
---------------
54,900 Office Depot, Inc.* 559,294
37,900 Rite Aid Corp.# 523,494 PETROLEUM REFINING & RELATED INDUSTRIES (5.3%)
68,100 Staples, Inc.* 1,485,431 13,300 Amerada Hess Corp.# 814,625
36,300 Toys 'R' Us, Inc.* 544,500 10,600 Ashland, Inc. 356,425
147,000 Walgreen Co.# 3,730,125 47,200 Atlantic Richfield Co. 4,183,100
---------------
10,073,229 96,100 Chevron Corp. 8,528,875
--------------- 91,900 Conoco, Inc. Class B 2,515,762
MOTION PICTURES (0.1%) 355,600 Exxon Corp. 27,003,375
31,800 Unicom Corp.# 1,174,613 12,700 Kerr-McGee Corp.# 699,294
--------------- 114,700 Mobil Corp. 11,556,025
37,100 Phillips Petroleum Co. 1,808,625
NONDEPOSITORY CREDIT INSTITUTIONS (2.2%) 314,100 Royal Dutch Petroleum Co.-NY
65,800 American Express Co. 8,858,325 Registered Shares 18,551,531
106,600 Associates First Capital Corp. 3,837,600 13,300 Sunoco, Inc. 364,088
28,900 Capital One Financial Corp.# 1,127,100 81,000 Texaco, Inc. 5,113,125
16,500 Countrywide Credit Industries, Inc. 532,125 35,500 Unocal Corp. 1,315,719
150,100 Fannie Mae 9,409,394 45,200 USX-Marathon Group, Inc. 1,322,100
---------------
101,800 Freddie Mac 5,293,600 84,132,669
---------------
70,100 Household International, Inc. 2,812,762
117,400 MBNA Corp.# 2,678,188 PHARMACEUTICAL PREPARATIONS (0.9%)
23,600 SLM Holding Corp. 1,014,800 191,400 American Home Products Corp. 7,943,100
---------------
35,563,894 74,700 Amgen, Inc.* 6,088,050
--------------- ---------------
14,031,150
---------------
OIL & GAS EXTRACTION (0.6%)
18,700 Anadarko Petroleum Corp. 571,519 PRIMARY METAL INDUSTRIES (0.5%)
16,700 Apache Corp. 721,231 33,100 Alcan Aluminum Ltd.# 1,034,375
26,000 Burlington Resources, Inc. # 955,500 53,700 Alcoa, Inc.# 3,332,756
7,200 Helmerich & Payne, Inc. 182,250 27,900 Allegheny Teledyne, Inc. 470,812
51,100 Occidental Petroleum Corp. 1,181,687 5,800 ASARCO, Inc. 155,513
12,200 Rowan Cos., Inc.* 198,250 19,200 Bethlehem Steel Corp.* 141,600
80,200 Schlumberger Ltd. 4,997,463 18,400 Engelhard Corp. 334,650
36,900 Union Pacific Resources Group, Inc. 592,706 28,100 Inco, Ltd.* 600,638
---------------
9,400,606 12,800 Nucor Corp. 609,600
--------------- 8,500 Phelps Dodge Corp. 468,031
PAPER & ALLIED PRODUCTS (1.3%) 9,200 Reynolds Metals Co. 555,450
16,600 Avery Dennison Corp. 875,650 12,900 USX-U.S. Steel Group, Inc. 332,175
7,700 Bemis Co., Inc. 260,837 13,500 Worthington Industries, Inc. 229,500
---------------
8,400 Boise Cascade Corp. 306,075 8,265,100
---------------
See Notes to Financial Statements. 37 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value Face/Shares Security Description Value
----------- ------------------------------- --------------- ------------------------------------------ ---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.7%) TOBACCO PRODUCTS (0.8%)
9,900 American Greetings Corp. $ 254,925 350,100 Philip Morris Cos., Inc. $ 11,969,044.00
---------------
11,100 Deluxe Corp. 377,400
13,300 Dow Jones & Co., Inc. 709,887 TRANSPORTATION BY AIR (0.3%)
41,000 Gannett Co., Inc. 2,836,688 22,000 AMR Corp.* 1,199,000
11,900 Knight-Ridder, Inc. # 653,012 20,600 Delta Airlines, Inc.# 999,100
28,800 McGraw-Hill Cos., Inc. 1,393,200 43,600 FDX Corp.* 1,689,500
7,600 Meredith Corp. 275,975 73,800 Southwest Airlines Co. 1,120,838
25,500 New York Times Co. 956,250 10,500 US Airways Group, Inc.* 275,625
---------------
18,700 R.R. Donnelley & Sons Co. 539,963 5,284,063
---------------
189,400 Time Warner, Inc.# 11,506,050
10,500 Times Mirror Co. 691,031 TRANSPORTATION EQUIPMENT (2.7%)
34,700 Tribune Co.# 1,726,325 80,600 Allied-Signal, Inc. 4,830,962
102,000 Viacom, Inc., Class B * 4,309,500 140,700 Boeing Co. 5,997,337
---------------
26,230,206 24,300 Dana Corp. 902,138
--------------- 82,800 Delphi Automotive Systems Corp. 1,329,975
RAILROAD TRANSPORTATION (0.5%) 10,600 Eaton Corp. 914,913
68,100 Burlington Northern Santa Fe Corp. 1,872,750 4,900 Fleetwood Enterprises, Inc. 98,919
31,900 CSX Corp.# 1,351,762 177,200 Ford Motor Co. 8,893,225
16,200 Kansas City Southern Industries, Inc. 752,288 29,200 General Dynamics Corp. 1,823,175
55,700 Norfolk Southern Corp. 1,364,650 94,300 General Motors Corp. 5,935,006
36,300 Union Pacific Corp.# 1,744,669 57,900 Lockheed Martin Corp.# 1,892,606
---------------
7,086,119 9,700 Navistar International Corp.* 451,050
--------------- 10,200 Northrop Grumman Corp. 648,338
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.5%) 11,500 Paccar, Inc. 585,063
5,900 Armstrong World Industries# 265,131 28,000 Rockwell International Corp. 1,470,000
11,100 Cooper Tire and Rubber Co. 195,637 22,000 Textron, Inc. 1,702,250
22,900 Goodyear Tire & Rubber Co. 1,102,063 17,800 TRW, Inc. 885,550
36,700 Illinois Tool Works, Inc. 2,736,444 70,500 United Technologies Corp. 4,181,531
---------------
41,300 Newell Rubbermaid, Inc.# 1,179,631 42,542,038
41,200 Nike, Inc., Class B 2,343,250 ---------------
8,200 Reebok International Ltd.* 87,638 WATER TRANSPORTATION (0.2%)
12,200 Sealed Air Corp.* 626,013 89,800 Carnival Corp. 3,906,300
8,400 Tupperware Corp. 170,100 ---------------
---------------
8,705,907 WHOLESALE TRADE-DURABLE GOODS (0.1%)
---------------
. 26,200 Genuine Parts Co. 695,937
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES 13,700 Grainger (W.W.), Inc. 658,456
& SERVICES (1.2%) 4,200 Potlatch Corp. 172,988
---------------
17,100 Bear Stearns Cos., Inc. 657,281 1,527,381
---------------
119,800 Charles Schwab Corp. 4,035,763
36,900 Franklin Resources, Inc. 1,134,675 WHOLESALE TRADE-NONDURABLE GOODS (0.3%)
17,600 Lehman Brothers Holding, Inc. 1,026,300 39,900 Cardinal Health, Inc. 2,174,550
54,100 Merrill Lynch & Co., Inc. 3,634,844 20,300 SUPERVALU, Inc. 442,794
83,600 Morgan Stanley Dean Witter & Co. 7,456,075 48,500 Sysco Corp. 1,700,531
---------------
21,300 Paine Webber Group, Inc. 772,125 4,317,875
--------------- ---------------
18,717,063
---------------
Total Common Stocks (cost $1,024,832,164) 1,550,018,336
STONE, CLAY, GLASS & CONCRETE PRODUCTS (0.2%)
35,800 Corning, Inc.# 2,454,538 CORPORATE NOTES (0.2%)
8,000 Owens Corning 173,500 1,605,000 NationsBank Corp., 5.47% V/R, 7/1/04 1,605,000
22,800 Owens-Illinois, Inc.* 451,725 1,600,000 Spintab/Swedmortgage, 6.01%, V/R,
---------------
3,079,763 12/20/99 1,599,520
--------------- ---------------
TEXTILE MILL PRODUCTS (0.0%) Total Corporate Notes (cost $3,197,667) 3,204,520
---------------
4,900 Russell Corp. 69,519
2,600 Springs Industries, Inc., Class A 88,237
---------------
157,756
---------------
</TABLE>
See Notes to Financial Statements. 38 CORE TRUST(DELAWARE)
<PAGE>
--------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (CONCLUDED)
SEPTEMBER 30, 1999
--------------------------------------------------------------------------------
Face Amount Security Description Value
--------------------------------------------------------------- ---------------
Time Deposits (1.9%)
29,635,292 Union Bank of Switzerland, 5.63%, 10/1/99 $ 29,635,292
(cost $29,635,2920) ---------------
U.S. Treasury Bills (0.1%)
2,410,000 4.93% yield, 4/27/00 ++ (cost $2,344,643) 2,343,821
---------------
Total Investments (100.0%) (Cost $1,060,009,766) $1,585,201,969
===============
Financial Futures Contracts ++
Unrealized
Position Contracts Index Gain (Loss)
--------- ------------- --------------------------------------- ---------------
Long 98 S&P 500 Futures, Expiring December 17, 1999
(notional value $31,805,900) $ (1,446,675)
---------------------------------------------------------------
* Non-income producing security.
# Part or all of this investment is on loan. See Note 6 of Notes to Financial
Statements.
++ As of September 30, 1999, $2,410,000 of U.S. Treasury Bills, 4/27/00, with
a market value of $2,343,821 were pledged to cover margin requirements for
open futures contracts.
V/R Variable rate - These 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 September 30, 1999.
See Notes to Financial Statements. 39 CORE TRUST(DELAWARE)
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<TABLE>
<S> <C>
FORUM
FUNDS
FOR MORE INFORMATION
INVESTORS EQUITY FUND
EQUITY INDEX FUND
TRANSFER AGENT
Forum Shareholder Services, LLC
Two Portland Square
Portland, Maine 04101
DISTRIBUTOR
Forum Fund Services, LLC
Two Portland Square
Portland, ME 04101
FORUM FUNDS
P.O. Box 446
Portland, Maine 04112
800-94FORUM
800-943-6786
207-879-0001
www.forumfunds.com
This report is authroized for distribution only to shareholders and to
others who have received a copy of the Funds' prospectus.
</TABLE>
