[FORUM SEMI-ANNUAL REPORT
FUNDS]
NOVEMBER 30, 1999
INVESTORS EQUITY FUND
EQUITY INDEX FUND
[Picture graphics of Parthenon}
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TABLE OF CONTENTS
A Message to Our Shareholders................................................1
FINANCIAL STATEMENTS OF FORUM FUNDS (UNAUDITED)
Schedules of Investments:
Investors Equity Fund....................................................3
Equity Index Fund........................................................3
Statements of Assets and Liabilities.........................................4
Statements of Operations.....................................................5
Statements of Changes in Net Assets......................................... 6
Financial Highlights.........................................................7
Notes to Financial Statements................................................9
FINANCIAL STATEMENTS OF INDEX PORTFOLIO OF WELLS FARGO CORE TRUST
NOVEMBER 30, 1999 (UNAUDITED)
Statement of Assets and Liabilities..........................................13
Schedule of Investments......................................................14
FINANCIAL STATEMENTS OF INDEX PORTFOLIO OF CORE TRUST (DELAWARE)
ANNUAL REPORT - SEPTEMBER 30, 1999
Independent Auditors' Report.................................................22
Statement of Assets and Liabilities..........................................23
Statement of Operations......................................................24
Statements of Changes in Net Assets..........................................25
Financial Highlights.........................................................26
Notes to Financial Statements................................................27
Schedule of Investments......................................................30
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FORUM FUNDS(R)
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[Picture of Forum Logo]
INVESTORS EQUITY FUND
EQUITY INDEX FUND
November 30, 1999 SEMI-ANNUAL REPORT
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Dear Investor:
This Semi-annual Report covers Investors Equity Fund and Equity Index Fund, two
series of Forum Funds, and reviews their performance for the six month period
ended November 30, 1999. As of this date, the two Funds have combined total
assets of over $47 million.
INVESTORS EQUITY FUND
For the six-month period ended November 30, 1999, Investors Equity Fund achieved
a total return of 8.49%. This compares favorably to the 7.36% total return of
the S&P 500 Index.*
The Fund's investment advisers remain committed to those sectors and industries
that have generated long-term, high quality, and consistent growth, focusing on
technology, health care, financial services and consumer oriented industries.
The advisers seek the leading companies in those industries because leaders are
in the best position to control their future company growth.
The U.S. economy continues to forge ahead, surprising even the optimists with
its strength, and foreign economies appear to be regaining their footing after
the cyclical downturns experienced in 1998. The strength in our economy has
naturally led to a tighter labor market and to modest rises in some commodity
prices. These factors prompted the Federal Reserve to raise short-term interest
rates in a preemptive move to deflect anticipated inflation. Higher interest
rates have clearly had an impact on certain sectors of the stock market,
particularly the financial services area. The Fund managers believe that these
actions by the Federal Reserve will gradually slow the economy, ultimately
leading to a modest decline in interest rates, which should provide for a better
operating environment for the financial services sector.
Technology stocks remain the largest commitment within the Fund. Clearly this
sector has enjoyed the greatest earnings growth in our economy and investors
have been generously rewarded. The advisers anticipate additional high earnings
growth for technology stocks in the upcoming year, as companies gain further
market share with the introduction of new products and services.
EQUITY INDEX FUND
For the six-month period ended November 30, 1999, the Equity Index Fund
experienced a gain of 7.49%. This compares favorably to the 7.36% total return
of the S&P 500 Index.* In seeking to achieve its objective--to replicate the
return of the S&P 500 Index with a minimum of tracking error--the Fund invests
substantially all of its assets in Index Portfolio, a series of Wells Fargo Core
Trust, another open-end management investment company. Index Portfolio invests
in all 500 securities that make up the S&P 500 Index and in the same weightings
as in the S&P 500 Index. Index Portfolio also invests in S&P 500 futures. In
addition to its investment in the Index Portfolio, the Fund maintains a small
portion of its assets in cash, mainly to satisfy shareholders' cash flows.
1 FORUM FUNDS[R]
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MANAGEMENT DISCUSSION & ANALYSIS (continued)
NOVEMBER 30, 1999
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IN CONCLUSION
In our current environment of increases in interest rates and with a tightening
of monetary policy by the Federal Reserve, we again remind you that you should
remain focused on your long-term investment goals. As an investor you should
review your portfolio allocation and diversification to ensure that the
portfolio remains aligned with your long-term plan. Housing starts and consumer
spending are still strong in our economy, despite the increases in interest
rates. This vitality is based on buoyant consumer confidence, low unemployment
and stronger economies in many parts of the world. The U.S. equity market
continues to be driven by the technology sector. As usual, we suggest that you
work with your financial professional to determine the appropriate asset
investment mix that is likely to meet your needs.
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 NOVEMBER 30,
1999, 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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SCHEDULES OF INVESTMENTS (unaudited)
NOVEMBER 30, 1999
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INVESTORS EQUITY FUND
COMMON STOCK (99.4%)
Shares Security Description Value
- ------------- ----------------------------- --------------
APPAREL & ACCESSORY STORES (2.7%)
22,500 Gap, Inc. $ 911,250
--------------
BANKS & CREDIT INSTITUTIONS (4.9%)
42,000 MBNA Corp. 1,060,500
13,000 Wells Fargo & Co. 604,500
--------------
1,665,000
--------------
BUILDING MATERIALS (3.1%)
13,200 Home Depot, Inc. 1,043,625
--------------
BUSINESS SERVICES (14.3%)
28,800 Automatic Data Processing, Inc . 1,422,000
17,000 Ecolab, Inc. 588,625
26,100 Interpublic Group Cos., Inc. 1,226,700
18,000 Microsoft Corp. * 1,638,844
--------------
4,876,169
--------------
CHEMICALS & ALLIED PRODUCTS (6.1%)
20,000 Gillette Co. 803,750
11,800 The Procter & Gamble Co. 1,274,400
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2,078,150
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COMMUNICATIONS (6.1%)
18,000 BellSouth Corp. 831,375
23,902 SBC Communications, Inc. 1,241,410
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2,072,785
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ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT (10.2%)
10,000 ADC Telecommunications, Inc. * 533,125
8,550 General Electric Co. 1,111,500
24,050 Intel Corp. 1,844,334
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3,488,959
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FINANCIAL INSTITUTIONS (2.9%)
14,925 Federal National Mortgage Assn . 994,378
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FOOD & KINDRED PRODUCTS (1.5%)
7,500 The Coca Cola Co. 504,844
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GROCERY STORES (1.7%)
28,000 Kroger Co. * 596,750
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INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT (14.0%)
11,400 Applied Materials, Inc. * 1,110,789
15,000 Cisco Systems, Inc. * 2,318,875
14,000 Solectron Corp. * 906,125
7,000 Tellabs, Inc. * 454,125
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4,789,914
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INSURANCE (4.5%)
14,952 American International Group, Inc. 1,543,794
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MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (4.6%)
28,600 Medtronic, Inc. $ 1,111,825
8,000 Stryker Corp. 455,500
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1,567,325
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MISCELLANEOUS RETAIL (2.6%)
38,000 Staples, Inc. * 893,000
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PETROLEUM REFINING & RELATED INDUSTRIES (3.4%)
14,700 Exxon Corp. 1,165,894
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PHARMACEUTICAL PREPARATIONS (9.4%)
19,800 Abbott Laboratories 752,400
12,800 Merck & Co., Inc. 1,004,800
24,300 Pfizer, Inc. 879,356
11,200 Schering-Plough Corp. 572,600
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3,209,156
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SECURITY & COMMODITY BROKERS, DEALERS,
EXCHANGES & SERVICES (2.1%)
9,000 Merrill Lynch & Co., Inc. 725,625
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WATER TRANSPORTATION (2.3%)
18,000 Carnival Corp. 794,250
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WHOLESALE TRADE - DURABLE GOODS (3.0%)
10,000 Danaher Corp. 491,250
8,000 Illinois Tool Works, Inc. 518,000
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1,009,250
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Total Common Stock (Cost $14,456,996)
33,930,118
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SHORT-TERM INVESTMENTS (0.6%)
Principal Amount Security Description Value
------------------- ----------------------- ----------------
$ 208,977 Bankers Trust Investment Money
Market Fund (Cost $208,977) $ 208,977
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Total Investments (100.0%) (Cost $14,665,973) $ 34,139,095
================
EQUITY INDEX FUND
INVESTMENT COMPANY (100.0%)
Security Description Value
- --------------------------------------------- ----------------
Index Portfolio of Wells Fargo Core Trust
(Cost $10,403,539) $ 13,360,658
================
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* Non-income producing security.
See Notes to Financial Statments 3 FORUM FUNDS[R]
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STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
NOVEMBER 30, 1999
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INVESTORS EQUITY
EQUITY INDEX
FUND FUND
----------------- ----------------
ASSETS
Investments (Notes 1 and 2)
Investments, at cost $ 14,665,973 $ 10,403,539
Net unrealized appreciation 19,473,122 2,957,119
----------------- ----------------
Total investments, at value 34,139,095 13,360,658
Interest, dividends and other receivables 22,506 -
Receivable for Fund shares sold - 1,000
Organization costs, net of amortization (Note 2) 2,072 1,615
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Total Assets 34,163,673 13,363,273
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LIABILITIES
Payable for Fund shares redeemed - 1,993
Payable to adviser (Note 3) 12,597 -
Payable to other related parties (Note 3) 5,574 -
Accrued expenses and other liabilities 37,837 7,671
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Total Liabilities 56,008 9,664
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NET ASSETS $ 34,107,665 $ 13,353,609
================= ================
COMPONENTS OF NET ASSETS
Paid-in capital $ 11,649,315 $ 10,251,211
Undistributed (distributions in excess of) net investment income (36,962) 119,209
Unrealized appreciation of investments 19,473,122 2,957,119
Net realized gain from investments 3,022,190 26,070
----------------- ----------------
NET ASSETS $ 34,107,665 $ 13,353,609
================= ================
SHARES OF BENEFICIAL INTEREST 2,425,617 886,626
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE $ 14.06 $ 15.06
OFFERING PRICE PER SHARE
(NAV / (1 - MAXIMUM SALES LOAD)) $ 14.65 $ 15.69
MAXIMUM SALES LOAD 4.00% 4.00%
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See Notes to Financial Statements 4 FORUM FUNDS[R]
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STATEMENTS OF OPERATIONS (unaudited)
PERIOD ENDED NOVEMBER 30, 1999
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INVESTORS EQUITY
EQUITY INDEX
FUND FUND
---------------- ----------------
INVESTMENT INCOME
Interest income $ 11,024 $ -
Dividend income 131,897 -
Interest income allocated from Portfolio (Note 1) - 8,079
Dividend income allocated from Portfolio (Note 1) - 73,090
Securities lending income allocated from Portfolio (Note 1) - 1,104
Net expenses allocated from Portfolio (Note 1) - (10,126)
---------------- ----------------
Total Investment Income 142,921 72,147
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EXPENSES
Investment advisory (Note 3) 106,219 -
Adminstration (Note 3) 32,683 11,957
Transfer agency (Note 3) 47,246 21,074
Custody 4,530 -
Accounting (Note 3) 18,000 6,000
Audit 7,700 11,200
Legal 3,824 625
Trustees 985 358
Reporting 5,321 2,668
Compliance 1,522 1,507
Amortization of organization costs (Note 2) 341 264
Miscellaneous 2,667 769
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Total Expenses 231,038 56,422
Expenses reimbursed and fees waived (Note 4) (51,155) (51,709)
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Net Expenses 179,883 4,713
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NET INVESTMENT INCOME (LOSS) (36,962) 67,434
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NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FUTURES TRANSACTIONS
Net realized gain on investments 620,885 -
Net realized gain on investments in Portfolio (Note 1) - 49,785
Net realized gain on futures transactions
in Portfolio (Note 1) - 9,392
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Net Realized Gain on Investments 620,885 59,177
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Net change in unrealized appreciation on investments 2,146,469 -
Net change in unrealized appreciation
on investments in Portfolio (Note 1) - 731,428
Net change in unrealized appreciation on futures
transactions in Portfolio (Note 1) - 21,039
---------------- ----------------
Net Change in Unrealized Appreciation on Investments
and Futures Transactions 2,146,469 752,467
---------------- ----------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 2,767,354 811,644
---------------- ----------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 2,730,392 $ 879,078
================ ================
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See Notes to Financial Statements 5 FORUM FUNDS[R]
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STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
FOR THE YEAR ENDED MAY 31, 1999, AND THE SIX MONTHS ENDED NOVEMBER 30, 1999
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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 5,660,156
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) ...................... (36,962) 67,434
Net realized gain on investments .................. 620,885 59,177
Net change in unrealized appreciation
of investments ............................... 2,146,469 752,467
------------ ------------
Net Increase in Net Assets Resulting from Operations .. 2,730,392 879,078
------------ ------------
CAPITAL SHARE TRANSACTIONS
Sale of shares .................................... 1,071,254 79,871 1,724,883 118,754
Redemption of shares .............................. (1,828,156) (134,604) (377,720) (26,308)
------------ ------------ ------------ ------------
Net Increase (Decrease) from Capital Share Transactions (756,902) (54,733) 1,347,163 92,446
------------ ============ ------------ ============
Net Increase in Net Assets ............................ 1,973,490 2,226,241
------------ ------------
NET ASSETS, November 30, 1999 (B) ..................... $ 34,107,665 $ 13,353,609
============ ============
(A) Undistributed net investment income ............... $ -- $ 51,775
============ ============
(B) Undistributed (distributions in excess of)
net investment income ......................... $ (36,962) $ 119,209
============ ============
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See Notes to Financial Statments 6 FORUM FUNDS[R]
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FINANCIAL HIGHLIGHTS (unaudited)
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These financial highlights reflect selected data for a share outstanding
throughout each period:
INVESTORS
EQUITY
FUND
---------------------------------------------------------------------
June 1, 1999 June 1, 1998 December 17, 1997
to to to
November 30, 1999 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) (0.02) (0.01) - (d)
Net realized and unrealized gain
on investments 1.12 2.60 1.43
--------------------- ---------------- ---------------------
Total from Investment Operations 1.10 2.59 1.43
--------------------- ---------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income - - (c) -
Net realized gain - (1.06) -
--------------------- ---------------- ---------------------
Decrease in Net Assets from Distributions - (1.06) -
--------------------- ---------------- ---------------------
NET ASSET VALUE, End of Period $14.06 $12.96 $11.43
===================== ================ =====================
TOTAL RETURN (a) 8.49% 24.21% 14.30%
RATIO/SUPPLEMENTARY DATA
Net assets at end of period (000's omitted) $34,108 $32,134 $30,090
Ratios to Average Net Assets
Expenses, including reimbursement/
waiver of fees 1.10% (b) 1.10% 1.10% (b)
Expenses, excluding reimbursement/
waiver of fees 1.41% (b) 1.44% 2.09% (b)
Net investment income (loss), including
reimbursement/waiver of fees (0.23)% (b) (0.06)% 0.09% (b)
PORTFOLIO TURNOVER RATE 5% 16% 11%
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(a) Total return calculations do not include sales charge.
(b) Annualized.
(c) Distributions per share were $0.00250.
(d) Net investment income per share was $.002224.
Notes to Financial Statements 7 FORUM FUNDS[R]
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FINANCIAL HIGHLIGHTS (unaudited)
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These financial highlights reflect selected data for a share outstanding
throughout each period:
EQUITY
INDEX
FUND
-----------------------------------------------------------------------
June 1, 1999 June 1, 1998 December 24, 1997
to to to
November 30, 1999 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 (a) 0.08 0.16 0.07
Net realized and unrealized gain
on investments 0.97 2.27 1.62
------------------------- ----------------- ---------------------
Total from Investment Operations 1.05 2.43 1.69
------------------------- ----------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income - (0.11) -
Net realized gain - - (d) -
------------------------- ----------------- ---------------------
Decrease in Net Assets from Distributions - (0.11) -
------------------------- ----------------- ---------------------
NET ASSET VALUE, End of Period $15.06 $14.01 $11.69
========================= ================= =====================
TOTAL RETURN (b) 7.49% 20.98% 16.90%
RATIO/SUPPLEMENTARY DATA
Net assets at end of period (000's omitted) $13,354 $11,127 $5,038
Ratios to Average Net Assets
Expenses, including reimbursement/
waiver of fees 0.25% (c) 0.25% 0.25% (c)
Expenses, excluding reimbursement/
waiver of fees 1.16% (c) 1.26% 2.25% (c)
Net investment income (loss), including
reimbursement/waiver of fees 1.13% (c) 1.27% 1.41% (c)
PORTFOLIO TURNOVER RATE 11% (e) 4% (e) 7% (e)
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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 charge.
(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 8 FORUM FUNDS[R]
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NOTES TO FINANCIAL STATEMENTS (unaudited)
NOVEMBER 30, 1999
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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 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 and 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. Equity Index Fund's ownership interest in
Index Portfolio was 0.77% as of November 30, 1999.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual 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.
9 FORUM FUNDS[R]
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
NOVEMBER 30, 1999
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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 gain 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. Prior to March 1, 1999, Forum Financial Services,
Inc. was each Fund's distributor and received similar compensation from each
Fund for its distribution services.
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.
10 FORUM FUNDS[R]
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
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 six
months ended November 30, 1999, expenses reimbursed and fees waived were as
follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
TOTAL
EXPENSES
EXPENSES REIMBURSED
REIMBURSED FEES WAIVED AND FEES
FADS FSS FADS FACS PAYSON WAIVED
Investors Equity Fund $ - $ - $ - $ - $ 51,155 $51,155
Equity Index Fund 13,168 20,584 11,957 6,000 - 51,709
</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 $2,207,106 and
$1,742,555, respectively, for the period June 1 to November 30, 1999. Please
refer to the Portfolio's financial statements for disclosure of the purchases
and sales figures of the Portfolio, in which Equity Index Fund invests.
For federal income tax purposes, the tax basis of investment securities owned by
Investors Equity Fund as of November 30, 1999 was $14,665,973, and the net
unrealized appreciation of investment securities was $19,473,122. The aggregate
gross unrealized appreciation for all securities in which there was an excess of
market value over tax cost was $19,694,273 and the aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
market value was $221,151.
11 FORUM FUNDS[R]
<PAGE>
NOVEMBER 30, 1999
INDEX PORTFOLIO
WELLS FARGO CORE TRUST
(UNAUDITED)
<PAGE>
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO
STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------------------------------------
INDEX
PORTFOLIO
--------------------
ASSETS
Investments
Investments, at cost $ 1,069,996,003
Net unrealized appreciation 652,876,041
--------------------
Total investments, at value 1,722,872,044
Cash 3,279
Collateral for securities loaned 422,394,545
Receivable for investments sold 890,850
Receivable for dividends, interest and other receivables 2,185,238
--------------------
Total Assets 2,148,345,956
--------------------
LIABILITIES
Payable for securities loaned 422,394,545
Payable for daily variation margin on financial futures
contracts 495,250
Accrued expenses and other liabilities 239,542
--------------------
Total Liabilities 423,129,337
--------------------
NET ASSETS $ 1,725,216,619
====================
</TABLE>
13 WELLS FARGO CORE TRUST
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (unaudited)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCK (97.8%)
Shares Security Description Value
- ------------- -------------------------------- --------------
AGRICULTURE (0.0%)
47,800 Nabisco Group Holdings Corp. $ 552,687
--------------
AMUSEMENT & RECREATION SERVICES (0.5%)
18,800 Harrah's Entertainment, Inc.* 519,350
302,100 Walt Disney Co. # 8,421,038
--------------
8,940,388
--------------
APPAREL & ACCESSORY STORES (0.7%)
57,400 CVS Corp. # 2,278,063
125,600 Gap, Inc. # 5,086,800
23,800 Kohl's Corp. *# 1,718,063
31,400 Limited, Inc. 1,332,538
20,500 Nordstrom, Inc. 570,156
46,500 TJX Cos., Inc. 1,217,718
--------------
12,203,338
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS
& SIMILAR MATERIALS (0.1%)
9,000 Liz Claiborne, Inc. # 336,937
17,400 V.F. Corp. # 519,825
--------------
856,762
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.0%)
21,800 Autozone, Inc. *# 600,862
7,700 Pep Boys - Manny, Moe & Jack # 74,594
--------------
675,456
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.0%)
10,200 Ryder System, Inc. 230,138
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS (0.0%)
8,700 Centex Corp. 206,625
7,000 Kaufman & Broad Home Corp. # 154,875
6,300 Pulte Corp. # 126,394
--------------
487,894
--------------
BUILDING MATERIALS, HARDWARE GARDEN SUPPLY & MOBILE
HOME DEALERS (1.2%)
217,200 Home Depot, Inc. 17,172,375
55,900 Lowe's Cos., Inc. 2,784,519
--------------
19,956,894
--------------
BUSINESS SERVICES (9.3%)
52,400 3COM Corp. * 2,086,175
17,800 Adobe Systems, Inc. # 1,222,638
324,600 America Online, Inc. *# 23,594,362
8,600 Autodesk, Inc. # 252,087
90,600 Automatic Data Processing, Inc. 4,473,375
35,000 BMC Software, Inc. * 2,548,438
25,500 Cabletron Systems, Inc. *# 584,906
105,500 Cendant Corp. *# 1,747,344
21,200 Ceridian Corp. *# 458,450
78,700 Computer Associates International, In 5,115,500
23,400 Computer Sciences Corp. *# 1,526,850
BUSINESS SERVICES - CONTINUED
52,300 Compuware Corp. *# $ 1,768,394
72,200 Electronic Data Systems Corp. 4,643,362
21,100 Equifax, Inc. 522,225
62,800 First Data Corp. 2,716,100
45,800 IMS Health, Inc. 1,079,162
41,300 Interpublic Group of Cos., Inc. # 1,941,100
41,200 McKesson HBOC, Inc. # 963,050
747,500 Microsoft Corp. * 68,057,558
49,100 Novell, Inc. * 960,519
26,000 Omnicom Group, Inc. # 2,291,250
210,800 Oracle Corp. *# 14,294,875
39,400 Parametric Technology Co. * # 893,887
35,600 PeopleSoft, Inc. *# 669,725
3,900 Shared Medical Systems Corp. # 170,625
113,300 Sun Microsystems, Inc. * 14,983,925
25,500 UST, Inc. # 678,938
---------------
160,244,820
---------------
CHEMICALS & ALLIED PRODUCTS (10.2%)
222,800 Abbott Laboratories # 8,466,400
33,600 Air Products and Chemicals, Inc. # 1,087,800
8,200 Alberto Culver Co. # 215,762
9,700 Allergan, Inc. # 954,238
14,900 ALZA Corp. * 643,494
38,200 Avon Products, Inc. # 1,391,912
42,600 Baxter International, Inc. 2,878,162
290,900 Bristol-Myers Squibb Co. 21,253,881
34,600 Clorox Co. # 1,541,863
85,400 Colgate-Palmolive Co. 4,686,325
32,200 Dow Chemical Co. # 3,771,425
152,800 E.i. Du Pont De Nemours & Co. 9,082,071
11,500 Eastman Chemical Co. # 447,063
19,000 Ecolab, Inc. # 657,875
160,100 Eli Lilly & Co. 11,487,175
4,700 FMC Corp. * # 227,950
16,100 Goodrich (B.F.) Co. # 363,256
8,600 Great Lakes Chemical Corp. 285,413
15,500 Hercules, Inc. # 368,125
15,500 International Flavors &
Fragrances, Inc. # 570,594
10,400 Mallinckrodt, Inc. 345,800
343,500 Merck & Co., Inc. 26,964,750
92,800 Monsanto Co. # 3,915,000
567,500 Pfizer, Inc. 20,536,406
74,200 Pharmacia & Upjohn, Inc. # 4,057,812
25,400 PPG Industries, Inc. # 1,487,488
23,300 Praxair, Inc. 1,039,763
194,600 Procter & Gamble Co. 21,016,800
31,900 Rohm & Haas Co. 1,168,337
215,100 Schering-Plough Corp. # 10,996,988
24,800 Sherwin-Williams Co. 531,650
19,500 Union Carbide Corp. 1,140,750
10,400 W.R. Grace & Co. *# 141,700
125,200 Warner Lambert Co. 11,228,875
14,000 Watson Pharmaceuticals *# 520,625
---------------
175,473,528
---------------
14 WELLS FARGO CORE TRUST
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (unaudited) (continued)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCK - CONTINUED
Shares Security Description Value
- ------------- -------------------------------- --------------
COMMUNICATIONS (9.8%)
44,700 Alltel Corp. # $ 3,866,550
468,000 AT&T Corp.# 26,149,500
227,400 Bell Atlantic Corp. # 14,397,263
276,100 BellSouth Corp. # 12,752,369
111,624 CBS Corp. * 5,804,448
20,400 CenturyTel, Inc. 938,400
49,400 Clear Channel Communications, Inc. *# 3,970,525
109,800 Comcast Corp., Class A# 4,961,587
112,500 Global Crossing Ltd. *# 4,907,813
143,700 GTE Corp. 10,490,100
274,300 MCI Worldcom, Inc. # 22,681,181
88,800 MediaOne Group, Inc. *# 7,037,400
53,000 Nextel Communications, Inc. *# 5,253,625
500,000 SBC Communications, Inc. # 25,968,750
127,100 Sprint Corp. (FON Group) 8,817,562
64,400 Sprint Corp. (PCS Group) *# 5,908,700
73,900 US West, Inc. 4,586,419
--------------
168,492,192
--------------
DEPOSITORY INSTITUTIONS (5.9%)
57,600 AmSouth Bancorp. 1,299,600
253,000 Bank of America Corp. # 14,800,500
107,700 Bank of New York Co., Inc. # 4,294,538
171,800 Bank One Corp. # 6,055,950
46,800 BB&T Corp. # 1,503,450
121,900 Chase Manhattan Corp. 9,416,775
22,900 Comerica, Inc. # 1,213,700
44,200 Fifth Third Bancorp # 3,094,000
140,100 First Union Corp. # 5,420,119
144,200 Firstar Corp. # 3,749,200
135,000 FleetBoston Financial Corp. # 5,104,688
8,100 Golden West Financial Corp. # 817,594
33,700 Huntington Bancshares, Inc. 933,069
25,700 J.P. Morgan & Co., Inc. 3,379,550
65,700 KeyCorp # 1,773,900
75,300 Mellon Bank Corp. 2,743,744
90,500 National City Corp. 2,256,844
16,300 Northern Trust Corp. # 1,578,044
44,500 PNC Bank Corp. 2,480,875
32,800 Regions Financial Corp. 899,950
15,300 Republic New York Corp. # 1,081,519
24,500 SouthTrust Corp. 950,906
23,600 State Street Corp. 1,733,125
25,900 Summit Bancorp 844,987
47,100 Suntrust Banks, Inc. # 3,291,112
39,700 Synovus Financial Corp. # 794,000
107,200 U.S. Bancorp 3,664,900
20,900 Union Planters Corp. # 890,862
29,600 Wachovia Corp. # 2,292,150
84,800 Washington Mutual, Inc. # 2,459,200
241,600 Wells Fargo Co. # 11,234,400
--------------
102,053,251
--------------
EATING & DRINKING PLACES (0.6%)
19,400 Darden Restaurants, Inc. # $ 345,563
198,400 McDonald's Corp. 8,928,000
22,500 Tricon Global Restaurants, Inc.* 933,750
17,800 Wendy's International, Inc. # 392,712
---------------
10,600,025
---------------
ELECTRIC, GAS & SANITARY SERVICES (2.4%)
30,200 AES Corp. *# 1,749,713
27,600 Allied Waste Industries, Inc. * 224,250
20,100 Ameren Corp. # 695,963
28,300 American Electric Power Co. # 887,912
23,400 Carolina Power & Light Co. # 704,925
31,100 Central & Southwest Corp. # 622,000
23,300 CINergy Corp. # 589,781
17,300 CMS Energy Corp. # 575,225
31,300 Coastal Corp. # 1,103,325
12,000 Columbia Energy Group 753,000
32,400 Consolidated Edison Co. # 1,117,800
14,000 Consolidated Natural Gas Co. 897,750
21,900 Constellation Energy Group 644,681
28,100 Dominion Resources, Inc. # 1,275,038
21,200 DTE Energy Co. # 700,925
53,400 Duke Energy Corp. 2,706,712
3,900 Eastern Enterprises 221,325
50,900 Edison International # 1,348,850
33,400 El Paso Energy Corp. 1,285,900
104,500 Enron Corp. 3,977,531
36,200 Entergy Corp. # 997,762
34,300 FirstEnergy Corp. # 799,619
14,400 Florida Progress Corp. 615,600
26,300 FPL Group, Inc. 1,150,625
18,400 General Public Utilities, Inc. 588,800
48,400 Laidlaw, Inc. 296,450
16,900 New Century Energies, Inc. # 531,294
27,400 Niagara Mohawk Holdings, Inc. * 411,000
6,900 Nicor, Inc. 239,344
22,600 Northern States Power Co. 461,888
4,600 Oneok, Inc. # 123,912
56,200 Pacific Gas & Electric Co. 1,257,475
27,300 PECO Energy Co. 899,194
5,200 People's Energy Corp. # 191,100
12,400 Pinnacle West Capital Corp. 411,525
23,100 PP&L Resources, Inc. 532,744
32,100 Public Service Enterprise Group, Inc 1,123,500
43,300 Reliant Energy, Inc. # 1,074,381
35,200 Sempra Energy # 651,200
100,100 Southern Co. # 2,339,838
40,500 Texas Utilities Co. 1,450,406
90,700 Waste Management, Inc. 1,473,875
63,600 Williams Cos., Inc. 2,146,500
---------------
41,850,638
---------------
15 WELLS FARGO CORE TRUST
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (unaudited) (continued)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCK - CONTINUED
Shares Security Description Value
- ------------- -------------------------------- --------------
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT (11.7%)
15,100 Adaptec, Inc. *# $ 813,512
21,900 ADC Telecommunications, Inc. *# 1,167,544
21,600 Advanced Micro Devices, Inc. *# 610,200
25,300 Analog Devices, Inc. *# 1,453,169
12,000 Andrew Corp. * 167,250
13,800 Cooper Industries, Inc. 592,537
63,600 Emerson Electric Co. 3,625,200
480,400 General Electric Co. 62,452,000
25,400 General Instrument Corp. * 1,663,700
484,500 Intel Corp. 37,155,094
21,600 LSI Logic Corp. *# 1,305,450
448,800 Lucent Technologies, Inc. 32,790,450
12,800 Maytag Corp. # 610,400
36,700 Micron Technology, Inc. # 2,463,488
88,900 Motorola, Inc. # 10,156,825
24,600 National Semiconductor Corp. *# 1,045,500
5,900 National Service Industries 174,419
10,800 Network Appliance, Inc. *# 1,271,025
194,400 Nortel Networks Corp. # 14,385,600
23,500 QUALCOMM, Inc. *# 8,514,344
11,200 Scientific-Atlanta, Inc. 653,100
3,986 Teledyne Technologies, Inc. * 35,124
57,300 Tellabs, Inc. *# 3,717,337
115,100 Texas Instruments, Inc. # 11,056,794
8,300 Thomas & Betts Corp. # 340,300
11,000 Whirlpool Corp. # 671,000
23,100 Xilinx, Inc. * 2,067,450
--------------
200,958,812
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT &
RELATED SERVICES (0.2%)
23,600 Dun & Bradstreet Corp. 637,200
36,000 Paychex, Inc. 1,437,750
6,700 Perkin Elmer, Inc. 275,538
16,800 Quintiles Transnational * 370,650
--------------
2,721,138
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY &
TRANSPORTATION EQUIPMENT (0.6%)
4,500 Ball Corp. # 167,344
9,900 Crane Co. # 181,912
17,900 Crown Cork & Seal Co., Inc. 364,712
20,800 Danaher Corp. # 1,021,800
24,400 Fortune Brands, Inc. 834,175
158,900 Gillette Co. # 6,385,794
15,900 Parker-Hannifin Corp. # 748,294
9,600 Snap-On, Inc. # 290,400
13,000 Stanley Works # 404,625
--------------
10,399,056
--------------
FOOD & KINDRED PRODUCTS (4.0%)
5,400 Adolph Coors Co. # 268,650
68,500 Anheuser-Busch Cos., Inc. # 5,124,656
90,400 Archer Daniels Midland Co. # 1,124,350
40,900 Bestfoods, Inc. # 2,241,831
10,000 Brown-Forman Corp. # 626,875
63,600 Campbell Soup Co. # 2,838,150
FOOD & KINDRED PRODUCTS (CONTINUED)
361,600 Coca-Cola Co. $ 24,340,200
62,200 Coca-Cola Enterprises, Inc. # 1,317,862
71,500 ConAgra, Inc. # 1,724,938
44,800 General Mills, Inc. 1,688,400
52,500 Heinz (H.J.) Co. 2,198,438
20,400 Hershey Foods Corp. 1,002,150
59,300 Kellogg Co. 2,008,788
214,200 PepsiCo, Inc. 7,403,287
19,600 Quaker Oats Co. # 1,278,900
47,400 Ralston-Ralston Purina Group # 1,407,188
132,300 Sara Lee Corp. 3,208,275
63,300 Seagram Co. Ltd. # 2,757,506
83,700 Unilever NV - NY Shares # 4,556,419
17,000 Wrigley (Wm) Jr. Co. 1,414,187
---------------
68,531,050
---------------
FOOD STORES (0.3%)
61,600 Albertson's, Inc. # 1,967,350
5,600 Great Atlantic & Pacific Tea Co. 142,450
121,500 Kroger Co. *# 2,589,469
21,800 Winn-Dixie Stores, Inc. *# 570,887
---------------
5,270,156
---------------
FURNITURE & FIXTURES (0.2%)
28,800 Leggett & Platt # 617,400
64,900 Masco Corp. 1,638,725
41,300 Newell Rubbermaid, Inc. # 1,355,156
---------------
3,611,281
---------------
GENERAL MERCHANDISE STORES (3.1%)
16,100 Consolidated Stores Corp. *# 253,575
32,300 Costco Wholesale Corp. *# 2,961,506
64,800 Dayton Hudson Corp. 4,572,450
15,700 Dilliards, Inc. # 296,337
32,900 Dollar General Corp. # 806,050
30,500 Federated Department Stores, Inc. *# 1,435,406
10,400 Harcourt General, Inc. # 344,500
38,600 J.C. Penney Co., Inc. 861,263
72,300 Kmart Corp. *# 718,481
48,900 May Department Stores Co. 1,644,263
55,700 Sears, Roebuck and Co. 1,904,244
651,800 Wal-Mart Stores, Inc. # 37,559,975
---------------
53,358,050
---------------
HEALTH SERVICES (0.2%)
82,600 Columbia HCA Healthcare Corp. # 2,250,850
60,800 HEALTHSOUTH Corp. * 345,800
15,700 Manor Care, Inc. *# 314,981
45,500 Tenet Healthcare Corp. *# 1,015,219
---------------
3,926,850
---------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION -
CONTRACTORS (0.2%)
11,100 Fluor Corp. # 466,894
6,000 Foster Wheeler Corp. # 61,125
64,600 Halliburton Co. # 2,499,212
---------------
3,027,231
---------------
16 WELLS FARGO CORE TRUST
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (unaudited) (continued)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCK - CONTINUED
Shares Security Description Value
- ------------- -------------------------------- --------------
HOLDING & OTHER INVESTMENT OFFICES (0.0%)
17,800 T. Rowe Price $ 640,800
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.2%)
29,800 Best Buy Co., Inc. *# 1,862,500
29,400 Circuit City Stores 1,425,900
--------------
3,288,400
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER
LODGING PLACES (0.1%)
37,300 Hilton Hotels Corp. # 375,331
36,400 Marriott International - Class A 1,185,275
29,100 Mirage Resorts, Inc. * 372,844
--------------
1,933,450
--------------
INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT (8.8%)
23,600 Apple Computer, Inc. *# 2,309,850
55,000 Applied Materials, Inc. *# 5,359,062
48,200 Baker Hughes, Inc. 1,217,050
12,700 Black & Decker Corp. 569,913
3,400 Briggs & Stratton Corp. # 181,688
13,500 Brunswick Corp. 294,469
52,100 Caterpillar, Inc. 2,416,138
476,200 Cisco Systems, Inc. * 42,471,088
249,000 Compaq Computer Corp. 6,084,938
10,200 Comverse Technology, Inc. * 1,232,925
6,100 Cummins Engine Co., Inc. # 247,050
34,200 Deere & Co. # 1,468,462
372,100 Dell Computer Corp. *# 16,000,300
30,500 Dover Corp. # 1,322,937
148,400 EMC Corp. *# 12,400,675
45,900 Gateway 2000, Inc. *# 3,505,612
148,400 Hewlett-Packard Co. 14,079,450
265,000 IBM Corp. 27,311,562
24,200 Ingersoll-Rand Co. 1,172,188
18,900 Lexmark International Group, Inc. * 1,568,700
8,700 McDermott International, Inc. 74,494
5,400 Milacron, Inc. # 78,637
18,200 Pall Corp. # 426,562
39,200 Pitney Bowes, Inc. # 1,879,150
32,600 Seagate Technology, Inc. * 1,206,200
27,600 Silicon Graphics, Inc. *# 260,475
39,500 Solectron Corp.* 3,253,813
28,300 Tandy Corp. # 2,168,488
9,100 Timken Co. # 174,037
44,800 Unisys Corp. * 1,288,000
--------------
152,023,913
--------------
INSURANCE AGENTS, BROKERS & SERVICES (0.3%)
37,500 Aon Corp. # 1,338,281
24,500 Humana, Inc. * 171,500
38,700 Marsh & McLennan Cos., Inc. 3,042,788
16,000 MGIC Investment Corp. 904,000
--------------
5,456,569
--------------
INSURANCE CARRIERS (4.4%)
20,600 Aetna Life & Casualty, Inc. $ 1,125,275
38,900 AFLAC, Inc. 1,862,337
116,900 Allstate Corp. 3,061,319
36,500 American General Corp. 2,675,906
226,800 American International Group, Inc. 23,417,102
25,800 Chubb Corp. 1,381,912
29,200 CIGNA Corp. # 2,401,700
24,200 Cincinnati Financial Corp. 810,700
494,600 Citigroup, Inc. 26,646,575
33,100 Hartford Financial Services Group 1,545,356
15,400 Jefferson-Pilot Corp. 1,045,275
29,100 Lincoln National Corp. # 1,213,106
15,800 Loews Corp. 1,011,200
14,600 MBIA, Inc. # 730,000
10,700 Progressive Corp. # 862,019
20,800 Providian Financial Corp. 1,645,800
19,300 Safeco Corp. # 457,169
33,200 St. Paul Cos., Inc.# 1,002,225
19,500 Torchmark Corp. 619,125
25,400 United Healthcare Corp. 1,319,213
35,000 UnumProvident Corp. 1,139,688
9,600 Wellpoint Health Networks, Inc. * 552,600
---------------
76,525,602
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.0%)
15,700 Louisiana-Pacific Corp. 192,325
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (1.6%)
7,500 Bard (C.R.), Inc. 407,344
8,400 Bausch & Lomb, Inc. 460,425
36,700 Becton, Dickinson and Co. # 1,000,075
16,500 Biomet, Inc. # 522,844
60,600 Boston Scientific Corp. * 1,280,175
46,400 Eastman Kodak Co. 2,871,000
44,300 Guidant Corp. *# 2,215,000
18,700 Honeywell, Inc. 2,093,231
12,500 Johnson Controls, Inc. # 681,250
12,900 KLA-Tencor Corp. *# 1,090,856
171,800 Medtronic, Inc. 6,678,725
6,600 Millipore Corp. # 216,563
14,900 PE Corp - PE Biosystems Group 1,216,212
6,500 Polaroid Corp. # 125,125
49,500 Raytheon Co., Class B # 1,519,031
12,400 St. Jude Medical, Inc. * 329,375
6,900 Tektronix, Inc. # 234,600
25,100 Teradyne, Inc. *# 1,093,419
23,100 Thermo Electron Corp. * 346,500
97,100 Xerox Corp. # 2,627,769
---------------
27,009,519
---------------
METAL MINING (0.2%)
57,100 Barrick Gold Corp. # 1,027,800
13,200 Cyprus Amax Minerals Co. 238,425
23,900 Freeport-McMoran Inc., Class B*# 377,919
38,100 Homestake Mining Co. 314,325
24,500 Newmont Mining Corp. # 580,344
47,700 Placer Dome, Inc. 542,587
---------------
3,081,400
---------------
17 WELLS FARGO CORE TRUST
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (unaudited) (continued)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value
- ------------- -------------------------------- --------------
MINING & QUARRYING OF NONMETALLIC MINERALS,
EXCEPT FUELS (0.0%)
14,700 Vulcan Materials Co. # $ 591,675
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.7%)
28,500 Hasbro, Inc. # 614,531
12,900 ITT Industries, Inc. 449,887
5,000 Jostens, Inc. # 91,875
61,500 Mattel, Inc. # 880,219
1,200 NACCO Industries, Inc. # 58,125
245,000 Tyco International Ltd. # 9,815,313
1,395 Water Pik Technologies, Inc. * 10,288
--------------
11,920,238
--------------
MISCELLANEOUS RETAIL (0.5%)
20,500 Bed Bath & Beyond, Inc. *# 640,625
5,800 Longs Drug Stores, Inc. # 145,725
54,900 Office Depot, Inc. * 610,762
37,900 Rite Aid Corp. # 286,619
68,100 Staples, Inc. * 1,600,350
36,300 Toys 'R' Us, Inc. *# 635,250
147,000 Walgreen Co. # 4,281,375
--------------
8,200,706
--------------
MOTION PICTURES (0.1%)
31,800 Unicom Corp.# 1,015,612
--------------
MOTOR FREIGHT TRANSPORTATION (0.1%)
43,600 FDX Corp. *# 1,839,375
--------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.8%)
65,800 American Express Co. 9,956,362
106,600 Associates First Capital Corp. 3,544,450
28,900 Capital One Financial Corp. # 1,345,656
47,900 Conseco, Inc. # 969,975
16,500 Countrywide Credit Industries, Inc. # 464,063
150,100 Fannie Mae 10,000,413
101,800 Freddie Mac 5,026,375
70,100 Household International, Inc. 2,773,331
117,400 MBNA Corp. 2,964,350
83,600 Morgan Stanley Dean Witter & Co. # 10,084,250
23,600 SLM Holding Corp. 1,169,675
--------------
48,298,900
--------------
OIL & GAS EXTRACTION (0.5%)
18,700 Anadarko Petroleum Corp. 563,338
16,000 Apache Corp. 598,069
31,900 Burlington Resources, Inc. # 1,072,638
7,200 Helmerich & Payne, Inc. 162,900
51,100 Occidental Petroleum Corp. 1,121,006
12,200 Rowan Cos., Inc. * 208,925
80,200 Schlumberger Ltd. 4,817,012
36,900 Union Pacific Resources Group, Inc. # 482,006
--------------
9,025,894
--------------
PAPER & ALLIED PRODUCTS (1.3%)
16,600 Avery Dennison Corp. # 985,625
7,700 Bemis Co., Inc. # 242,550
8,400 Boise Cascade Corp. # 290,850
PAPER & ALLIED PRODUCTS (CONTINUED)
14,100 Champion International Corp. # $ 781,669
32,400 Fort James Corp. 931,500
25,100 Georgia-Pacific Group # 999,294
21,800 IKON Office Solutions, Inc. # 145,787
60,600 International Paper Co. # 3,162,563
78,000 Kimberly-Clark Corp. 4,982,250
15,000 Mead Corp. 535,312
59,000 Minnesota Mining and
Manufacturing Co. 5,638,188
25,000 Pactiv Corp. *# 256,250
12,200 Sealed Air Corp. *# 573,400
8,200 Temple-Inland, Inc. 469,450
14,700 Westvaco Corp. # 443,756
34,500 Weyerhaeuser Co. # 2,113,125
16,300 Willamette Industries, Inc. # 674,412
---------------
23,225,981
---------------
PERSONAL SERVICES (0.1%)
14,300 H&R Block, Inc. 614,900
39,800 Service Corp. International 300,988
---------------
915,888
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (5.0%)
13,300 Amerada Hess Corp. # 770,569
10,600 Ashland, Inc. # 357,750
47,200 Atlantic Richfield Co. 4,548,900
96,100 Chevron Corp. 8,510,856
91,900 Conoco, Inc., Class B 2,406,631
355,600 Exxon Corp. * 28,203,525
12,700 Kerr-McGee Corp. # 727,075
114,700 Mobil Corp. 11,964,644
37,100 Phillips Petroleum Co. 1,773,844
314,100 Royal Dutch Petroleum Co. # 18,217,800
13,300 Sunoco, Inc. 339,981
81,000 Texaco, Inc. 4,935,938
22,300 Tosco Corp. # 603,494
35,500 Unocal Corp. # 1,178,156
45,200 USX-Marathon Group, Inc. # 1,194,975
---------------
85,734,138
---------------
PHARMACEUTICAL PREPARATIONS (1.0%)
191,400 American Home Products Corp. 9,952,800
149,400 Amgen, Inc. * 6,807,038
---------------
16,759,838
---------------
PRIMARY METAL INDUSTRIES (0.5%)
33,100 Alcan Aluminum Ltd. # 1,125,400
53,700 Alcoa, Inc. # 3,517,350
13,950 Allegheny Technologies 351,366
19,200 Bethlehem Steel Corp. * 120,000
18,400 Engelhard Corp. # 309,350
28,100 Inco Ltd. 516,337
12,800 Nucor Corp. # 645,600
8,500 Phelps Dodge Corp. # 442,000
9,200 Reynolds Metals Co. 575,575
12,900 USX-U.S. Steel Group, Inc. 326,531
13,500 Worthington Industries, Inc. # 216,000
---------------
8,145,509
---------------
18 WELLS FARGO CORE TRUST
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (unaudited) (continued)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCK - CONTINUED
Shares Security Description Value
- ------------- -------------------------------- --------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.6%)
9,900 American Greetings Corp. $ 233,269
11,100 Deluxe Corp. # 290,681
13,300 Dow Jones & Co., Inc. # 806,312
41,000 Gannett Co., Inc. # 2,934,063
11,900 Knight Ridder, Inc. # 649,294
28,800 McGraw-Hill Cos., Inc. # 1,632,600
7,600 Meredith Corp. # 287,375
25,500 New York Times Co. # 980,156
18,700 R.R. Donnelley & Sons Co. 448,800
189,400 Time Warner, Inc. # 11,683,613
6,900 Times Mirror Co. # 445,481
34,700 Tribune Co. # 1,667,769
102,000 Viacom, Inc., Class B *# 5,074,500
--------------
27,133,913
--------------
RAILROAD TRANSPORTATION (0.4%)
68,100 Burlington Northern Santa Fe Corp. 1,974,900
31,900 CSX Corp. # 1,134,444
16,200 Kansas City Southern Industries, Inc. 964,912
55,700 Norfolk Southern Corp. # 1,190,588
36,300 Union Pacific Corp. # 1,708,369
--------------
6,973,213
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.4%)
5,900 Armstrong World Industries # 197,650
11,100 Cooper Tire & Rubber Co. 166,500
22,900 Goodyear Tire & Rubber Co. # 772,875
44,000 Illinois Tool Works, Inc. # 2,849,000
41,200 Nike, Inc., Class B # 1,895,200
8,200 Reebok International Ltd. *# 73,800
8,400 Tupperware Corp. 149,625
--------------
6,104,650
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES
& SERVICES (0.8%)
17,955 Bear Stearns Cos., Inc. 732,788
119,800 Charles Schwab Corp. 4,544,913
36,900 Franklin Resources, Inc. 1,160,044
17,600 Lehman Brothers Holding, Inc. # 1,344,200
54,100 Merrill Lynch & Co., Inc. 4,361,812
21,300 Paine Webber Group, Inc. # 834,694
--------------
12,978,451
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (0.2%)
35,800 Corning, Inc. # 3,354,012
8,000 Owens Corning # 126,000
22,800 Owens-Illinois, Inc. *# 545,775
--------------
4,025,787
--------------
TEXTILE MILL PRODUCTS (0.0%) $ 64,006
4,900 Russell Corp. # $ 64,006
2,600 Springs Industries, Inc., Class A 104,000
---------------
168,006
---------------
TOBACCO PRODUCTS (0.5%)
350,100 Philip Morris Cos., Inc. 9,212,006
---------------
TRANSPORTATION BY AIR (0.2%)
22,000 AMR Corp. *# 1,339,250
20,600 Delta Airlines, Inc. # 1,014,550
73,800 Southwest Airlines Co. 1,203,862
10,500 US Airways Group, Inc. *# 293,344
---------------
3,851,006
---------------
TRANSPORTATION EQUIPMENT (2.4%)
80,600 Allied-Signal, Inc. *# 4,820,888
140,700 Boeing Co. 5,742,319
24,300 Dana Corp. # 674,325
82,800 Delphi Automotive Systems Corp. 1,304,100
10,600 Eaton Corp. # 820,838
4,900 Fleetwood Enterprises, Inc. 102,900
177,200 Ford Motor Co. 8,948,600
29,200 General Dynamics Corp. 1,505,625
94,300 General Motors Corp. 6,789,600
57,900 Lockheed Martin Corp. # 1,150,763
9,700 Navistar International Corp. * 360,719
10,200 Northrop Grumman Corp. 573,112
11,500 PACCAR, Inc. 472,937
28,000 Rockwell International Corp. # 1,389,500
22,000 Textron, Inc. # 1,563,375
17,800 TRW, Inc. # 928,937
70,500 United Technologies Corp. 3,983,250
---------------
41,131,788
---------------
WATER TRANSPORTATION (0.2%)
89,800 Carnival Corp. 3,962,425
---------------
WHOLESALE TRADE-DURABLE GOODS (1.3%)
26,200 Genuine Parts Co. # 674,650
13,700 Grainger (W.W.), Inc. # 645,612
196,900 Johnson & Johnson 20,428,375
4,200 Potlatch Corp. # 169,837
---------------
21,918,474
---------------
WHOLESALE TRADE-NONDURABLE GOODS (0.4%)
39,900 Cardinal Health, Inc. 2,087,269
74,700 Safeway, Inc. *# 2,754,562
14,800 Sigma Aldrich # 423,650
20,300 SUPERVALU, Inc. # 394,581
48,500 Sysco Corp. 1,846,031
---------------
7,506,093
---------------
Total Common Stocks (Cost $1,032,338,129) 1,685,213,179
---------------
19 WELLS FARGO CORE TRUST
<PAGE>
- -------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (unaudited) (continued)
NOVEMBER 30, 1999
- -------------------------------------------------------------------------
Face Amount Security Description Value
- -------------------- ------------------------------------ ---------------
CORPORATE NOTES (0.2%)
$1,605,000 NationsBank Corp., 6.20% V/R, 7/1/04 $ 1,605,000
1,600,000 Spintab/Swedmortgage, 6.01% V/R,
12/20/99 1,599,520
---------------
Total Corporate (Cost $3,197,586) 3,204,520
---------------
U.S. TREASURY BILLS (0.1%)
2,410,000 4.62% yield, 4/27/00++ (cost $2,363,718) 2,357,775
---------------
TIME DEPOSITS (1.9%)
32,096,570 Fifth Third Bank, 5.78%, 12/1/99 32,096,570
---------------
(Cost $32,096,570)
TOTAL INVESTMENTS (100.0%) $ 1,722,872,044
===============
(Cost 1,069,996,003)
Financial Futures Contracts++
Unrealized
Position Contracts Index Gain
- -------- ------------ -------------------------------- ---------------
Long 109 S&P 500 Futures, Expiring December 17, $11,122,825
1999 (notional value $37,918,375)
- ---------------------------------------------------------
* Non-income producing security.
# Part or all of this investment is on loan.
++ As of November 30, 1999, $2,410,000 of U.S. Treasury Bills, 4/17/00, with a
market value of $2,357,775 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 November 30, 1999.
20 WELLS FARGO CORE TRUST
<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.
[KPMG Computerized Signature]
Boston, Massachusetts
November 18, 1999
22 CORE TRUST (DELAWARE)
<PAGE>
<TABLE>
<S> <C>
- ---------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999
- ---------------------------------------------------------------------------------------------------------------
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 23 CORE TRUST (DELAWARE)
<PAGE>
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
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
================ ================
See Notes to Financial Statements 24 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
- -------------------------------------------------------------------------------------------------------------------
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 25 CORE TRUST (DELAWARE)
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------
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 26 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.
27 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
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.
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.
28 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
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.
29 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS (97.8%)
Shares Security Description Value
- --------------- ------------------------------ -------------
AGRICULTURAL PRODUCTION-CROPS (0.1%)
47,800 Nabisco Group Holdings Corp. $ 717,000
35,100 Pioneer Hi-Bred International, Inc 1,397,419
-------------
2,114,419
-------------
AMUSEMENT & RECREATION SERVICES (0.5%)
18,800 Harrah's Entertainment, Inc.* 521,700
302,100 Walt Disney Co.*# 7,816,838
-------------
8,338,538
-------------
APPAREL & ACCESSORY STORES (0.5%)
125,600 Gap, Inc. 4,019,200
20,500 Nordstrom, Inc. 553,500
31,400 Limited, Inc. 1,201,050
46,500 TJX Cos., Inc. 1,304,906
-------------
7,078,656
-------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS
& SIMILAR MATERIALS (0.1%)
9,000 Liz Claiborne, Inc.# 279,000
17,400 V.F. Corp. 539,400
-------------
818,400
-------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.0%)
7,700 Pep Boys - Manny, Moe & Jack 114,538
21,800 Autozone, Inc.* 611,762
-------------
726,300
-------------
AUTOMOTIVE REPAIR, SERVICES & PARKING (0.0%)
10,200 Ryder System, Inc. 207,825
-------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS (0.0%)
8,700 Centex Corp. 257,194
7,000 Kaufman & Broad Home Corp. 144,375
6,300 Pulte Corp. 137,025
-------------
538,594
-------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE
HOME DEALERS (1.1%)
217,200 Home Depot, Inc. 14,905,350
55,900 Lowe's Cos., Inc. 2,725,125
-------------
17,630,475
-------------
BUSINESS SERVICES (8.9%)
52,400 3COM Corp.* 1,506,500
8,900 Adobe Systems, Inc. 1,010,150
162,300 America Online, Inc.*# 16,879,200
8,600 Autodesk, Inc. 188,125
90,600 Automatic Data Processing, Inc. 4,043,025
35,000 BMC Software, Inc.* # 2,504,687
25,500 Cabletron Systems, Inc. * 400,031
105,500 Cendant Corp.* 1,872,625
21,200 Ceridian Corp.* 527,350
78,700 Computer Associates International 4,820,375
23,400 Computer Sciences Corp.* 1,645,312
BUSINESS SERVICES - CONTINUED
52,300 Compuware Corp.*# $ 1,363,069
72,200 Electronic Data Systems Corp. 3,822,088
21,100 Equifax, Inc. 593,437
62,800 First Data Corp. 2,755,350
45,800 IMS Health, Inc. 1,044,813
41,300 Interpublic Group of Cos., Inc. 1,698,462
41,200 McKesson HBOC, Inc.# 1,194,800
747,500 Microsoft Corp.* 67,695,469
49,100 Novell, Inc.* 1,015,756
26,000 Omnicom Group, Inc.# 2,058,875
210,800 Oracle Corp.*# 9,591,400
39,400 Parametric Technology Co.* 531,900
35,600 PeopleSoft, Inc.* 602,975
3,900 Shared Medical Systems Corp. 182,325
113,300 Sun Microsystems, Inc.* 10,536,900
25,500 UST, Inc. 769,781
--------------
140,854,780
--------------
CHEMICALS & ALLIED PRODUCTS (11.1%)
222,800 Abbott Laboratories# 8,187,900
33,600 Air Products and Chemicals, Inc. 976,500
8,200 Alberto Culver Co. 189,625
9,700 Allergan, Inc. 1,067,000
14,900 ALZA Corp.* 637,906
38,200 Avon Products, Inc. 947,837
42,600 Baxter International, Inc.# 2,566,650
290,900 Bristol-Myers Squibb Co. 19,635,750
34,600 Clorox Co. 1,323,450
85,400 Colgate-Palmolive Co.# 3,907,050
32,200 Dow Chemical Co.# 3,658,725
155,200 E.I. du Pont de Nemours & Co. 9,447,800
11,500 Eastman Chemical Co. 460,000
19,000 Ecolab, Inc. 648,375
160,100 Eli Lilly & Co. 10,246,400
4,700 FMC Corp.* 226,775
16,100 Goodrich (B.F.) Co. 466,900
8,600 Great Lakes Chemical Corp. 327,337
15,500 Hercules, Inc. 443,687
15,500 International Flavors & Fragrance 534,750
196,900 Johnson & Johnson 18,090,188
10,400 Mallinckrodt, Inc. 313,950
343,500 Merck & Co., Inc. 22,263,094
92,800 Monsanto Co. 3,311,800
567,500 Pfizer, Inc. 20,394,531
74,200 Pharmacia & Upjohn, Inc.# 3,682,175
25,400 PPG Industries, Inc. 1,524,000
23,300 Praxair, Inc. 1,071,800
194,600 Procter & Gamble Co. 18,243,750
31,900 Rohm & Haas Co. 1,152,388
215,100 Schering-Plough Corp. 9,383,737
24,800 Sherwin-Williams Co. 519,250
14,800 Sigma Aldrich 469,900
19,500 Union Carbide Corp. 1,107,844
10,400 W.R. Grace & Co.* 167,050
See Notes to Financial Statementes 30 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS - continued
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value
------------ ------------------------------ -------------
CHEMICALS AND ALLIED PRODUCTS - CONTINUED
125,200 Warner-Lambert Co. $ 8,310,150
14,000 Watson Pharmaceuticals, Inc.* 427,875
-------------
176,333,899
-------------
COMMUNICATIONS (9.5%)
44,700 Alltel Corp. 3,145,762
161,000 Ameritech Corp. 10,817,187
468,000 AT&T Corp.# 20,358,000
227,400 Bell Atlantic Corp.# 15,306,862
276,100 BellSouth Corp.# 12,424,500
103,200 CBS Corp.*# 4,773,000
20,400 CenturyTel, Inc. 828,750
49,400 Clear Channel Communications, Inc 3,945,825
109,800 Comcast Corp., Class A *# 4,378,275
112,070 Global Crossing Ltd.* 2,969,855
143,700 GTE Corp. 11,046,938
10,400 King World Productions, Inc. * 390,000
274,300 MCI Worldcom, Inc.*# 19,715,313
88,800 MediaOne Group, Inc.* # 6,066,150
48,600 Nextel Communications, Inc.* 3,295,687
288,100 SBC Communications, Inc.# 14,711,106
127,100 Sprint Corp. (FON Group) 6,895,175
64,400 Sprint Corp. (PCS Group)*# 4,801,825
73,900 US West, Inc. 4,216,919
-------------
150,087,129
-------------
DEPOSITORY INSTITUTIONS (6.1%)
25,800 AmSouth Bancorp.# 604,687
253,000 Bank of America Corp.# 14,088,938
107,700 Bank of New York Co., Inc.# 3,601,219
171,800 Bank One Corp. 5,980,788
43,500 BankBoston Corp. 1,886,812
46,800 BB&T Corp.# 1,515,150
121,900 Chase Manhattan Corp. 9,188,212
22,900 Comerica, Inc. 1,159,312
39,700 Fifth Third Bancorp 2,415,499
140,100 First Union Corp. 4,982,306
192,710 Firstar Corp.# 4,938,194
83,400 Fleet Boston Corp. 3,054,525
8,100 Golden West Financial Corp. 795,825
33,700 Huntington Bancshares, Inc. 895,156
25,700 J.P. Morgan & Co., Inc. 2,936,225
65,700 KeyCorp 1,695,881
75,300 Mellon Bank Corp. 2,541,375
90,500 National City Corp. 2,415,219
16,300 Northern Trust Corp. 1,361,050
44,500 PNC Bank Corp. 2,344,594
32,800 Regions Financial Corp. 984,000
15,300 Republic New York Corp. 939,994
24,500 SouthTrust Corp. 878,937
23,600 State Street Corp. 1,525,150
25,900 Summit Bancorp 840,131
47,100 Suntrust Banks, Inc. 3,096,825
39,700 Synovus Financial Corp. 741,894
107,200 U.S. Bancorp 3,236,100
20,900 Union Planters Corp. 851,675
DEPOSITORY INSTITIUTIONS (CONTINUED)
29,600 Wachovia Corp.# $ 2,327,300
84,800 Washington Mutual, Inc.# 2,480,400
241,600 Wells Fargo Co.# 9,573,400
--------------
95,876,773
--------------
EATING & DRINKING PLACES (0.7%)
19,400 Darden Restaurants, Inc. 379,512
198,400 McDonald's Corp. 8,531,200
22,500 Tricon Global Restaurants, Inc.* 921,094
17,800 Wendy's International, Inc.# 469,475
--------------
10,301,281
--------------
ELECTRIC, GAS & SANITARY SERVICES (2.8%)
28,100 AES Corp. *# 1,657,900
27,600 Allied Waste Industries, Inc.* 322,575
20,100 Ameren Corp. 760,031
28,300 American Electric Power Co. 965,737
23,400 Carolina Power & Light Co.# 827,775
31,100 Central & Southwest Corp.# 656,987
23,300 CINergy Corp. 659,681
17,300 CMS Energy Corp. 587,119
31,300 Coastal Corp. 1,281,344
12,000 Columbia Energy Group 664,500
32,400 Consolidated Edison Co. 1,344,600
14,000 Consolidated Natural Gas Co. 873,250
21,900 Constellation Energy Group 615,937
28,100 Dominion Resources, Inc.# 1,268,012
21,200 DTE Energy Co. 765,850
53,400 Duke Energy Corp. # 2,943,675
3,900 Eastern Enterprises 181,106
50,900 Edison International# 1,237,506
104,500 Enron Corp. 4,310,625
36,200 Entergy Corp.# 1,047,537
34,300 FirstEnergy Corp. 874,650
14,400 Florida Progress Corp. 666,000
26,300 FPL Group, Inc. 1,324,863
18,400 GPU, Inc. 600,300
48,400 Laidlaw, Inc. 326,700
16,900 New Century Energies, Inc. 565,094
27,400 Niagara Mohawk Holdings, Inc.* 422,988
6,900 Nicor, Inc. 256,594
22,600 Northern States Power Co. 487,313
4,600 Oneok, Inc. 139,438
56,200 Pacific Gas & Electric Co. 1,454,175
43,500 PacifiCorp 875,438
27,300 PECO Energy Co. 1,023,750
5,200 People's Energy Corp. 182,975
23,100 PP&L Resources, Inc. 625,144
32,100 Public Service Enterprise Group, I 1,239,863
43,300 Reliant Energy, Inc. 1,171,806
35,200 Sempra Energy 732,600
16,100 Sonat, Inc. 638,969
100,100 Southern Co.# 2,577,575
40,500 Texas Utilities Co. 1,511,156
90,700 Waste Management, Inc. 1,745,975
63,600 Williams Cos., Inc. 2,381,025
--------------
44,796,138
--------------
See Notes to Financial Statements 31 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS - continued
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value
------------ ------------------------------ -------------
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT (10.9%)
15,100 Adaptec, Inc. * $ 599,281
19,800 ADC Telecommunications, Inc.*# 830,362
21,600 Advanced Micro Devices, Inc. * 371,250
12,000 Andrew Corp.* 208,500
13,800 Cooper Industries, Inc. 645,150
63,600 Emerson Electric Co. 4,018,725
480,400 General Electric Co. 56,957,425
25,400 General Instrucment Corp.* 1,222,375
11,700 Harris Corp. 323,213
484,500 Intel Corp. 36,004,406
21,600 LSI Logic Corp.* 1,112,400
448,800 Lucent Technologies, Inc. 29,115,900
12,800 Maytag Corp. 426,400
36,700 Micron Technology, Inc.*# 2,442,844
88,900 Motorola, Inc.# 7,823,200
24,600 National Semiconductor Corp.* 750,300
5,900 National Service Industries 185,850
10,800 Network Appliance, Inc.* 773,550
194,400 Nortel Networks Corp.# 9,914,400
23,500 QUALCOMM, Inc.*# 4,445,906
11,200 Scientific-Atlanta, Inc. 555,100
57,300 Tellabs, Inc.*# 3,262,519
115,100 Texas Instruments, Inc.# 9,466,975
8,300 Thomas & Betts Corp.# 423,300
11,000 Whirlpool Corp.# 718,437
-------------
172,597,768
-------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT &
RELATED SERVICES (0.1%)
23,600 Dun & Bradstreet Corp. 705,050
6,700 EG &G, Inc. 266,744
36,000 Paychex, Inc. 1,228,500
-------------
2,200,294
-------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY &
TRANSPORTATION EQUIPMENT (0.6%)
4,500 Ball Corp. 198,281
9,900 Crane Co. 222,131
17,900 Crown Cork & Seal Co., Inc. 434,075
20,800 Danaher Corp. 1,095,900
24,400 Fortune Brands, Inc. 786,900
158,900 Gillette Co. 5,392,669
15,900 Parker-Hannifin Corp. 712,519
9,600 Snap-On, Inc. 312,000
13,000 Stanley Works 327,438
-------------
9,481,913
-------------
FOOD & KINDRED PRODUCTS (3.8%)
5,400 Adolph Coors Co. 292,275
68,500 Anheuser-busch Cos., Inc.# 4,799,281
90,400 Archer Daniels Midland Co. 1,101,750
40,900 Bestfoods, Inc. 1,983,650
10,000 Brown-Forman Corp. 623,750
63,600 Campbell Soup Co. 2,488,350
361,600 Coca-Cola Co. 17,379,400
FOOD & KINDRED PRODUCTS (CONTINUED)
62,200 Coca-Cola Enterprises, Inc.# $ 1,403,387
71,500 ConAgra, Inc. 1,613,219
22,400 General Mills, Inc. 1,817,200
52,500 Heinz (H.J.) Co. 2,257,500
20,400 Hershey Foods Corp.# 993,225
59,300 Kellogg Co. 2,220,044
214,200 PepsiCo, Inc. 6,479,550
19,600 Quaker Oats Co.# 1,212,750
47,400 Ralston-Ralston Purina Group 1,318,313
132,300 Sara Lee Corp. 3,100,781
63,300 Seagram Co. Ltd. # 2,880,150
83,700 Unilever NV - NY Shares 5,702,062
17,000 Wrigley (Wm) Jr. Co. 1,169,813
--------------
60,836,450
--------------
FOOD STORES (0.6%)
61,600 Albertson's, Inc.# 2,437,050
5,600 Great Atlantic & Pacific Tea Co. 169,750
121,500 Kroger Co.*# 2,680,594
74,700 Safeway, Inc.* 2,843,269
21,800 Winn-Dixie Stores, Inc. 647,187
--------------
8,777,850
--------------
FURNITURE & FIXTURES (0.1%)
64,900 Masco Corp. 2,011,900
--------------
GENERAL MERCHANDISE STORES (3.0%)
16,100 Consolidated Stores Corp.* 355,206
32,300 Costco Wholesale Corp.* # 2,325,600
64,800 Dayton Hudson Corp. 3,892,050
15,700 Dilliards, Inc. 318,906
32,900 Dollar General Corp. 1,015,787
30,500 Federated Department Stores, Inc.* 1,332,469
10,400 Harcourt General, Inc. 432,900
38,600 J.C. Penney Co., Inc. 1,326,875
72,300 Kmart Corp.* 845,006
23,800 Kohl's Corp.* 1,573,775
48,900 May Department Stores Co. 1,781,794
55,700 Sears, Roebuck and Co. 1,747,588
651,800 Wal-Mart Stores, Inc. 31,001,238
--------------
47,949,194
--------------
HEALTH SERVICES (0.2%)
82,600 Columbia HCA Healthcare Corp. 1,750,087
60,800 HEALTHSOUTH Corp.* 368,600
15,700 Manor Care, Inc.* 269,844
45,500 Tenet Healthcare Corp.* 799,094
--------------
3,187,625
--------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION -
CONTRACTORS (0.2%)5
11,100 Fluor Corp. 446,775
6,000 Foster Wheeler Corp. 72,375
64,600 Halliburton Co. 2,648,600
--------------
3,167,750
--------------
See Notes to Financial Statements 32 CORE TRUST (DELAWARE)
<PAGE>
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS - continued
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
Shares Security Description Value
------------ ------------------------------ -------------
HOLDING & OTHER INVESTMENT OFFICES (0.1%)
47,900 Conseco, Inc.# $ 925,069
-------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.2%)
29,800 Best Buy Co., Inc.* 1,849,462
29,400 Circuit City Stores 1,240,313
-------------
3,089,775
-------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER
LODGING PLACES (0.1%)
37,300 Hilton Hotels Corp. 368,337
36,400 Marriott International - Class A 1,189,825
29,100 Mirage Resorts, Inc.* 409,219
-------------
1,967,381
-------------
INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT (9.7%)
23,600 Apple Computer, Inc.* # 1,494,175
55,000 Applied Materials, Inc.* 4,283,125
48,200 Baker Hughes, Inc. 1,397,800
12,700 Black & Decker Corp. 580,231
3,400 Briggs & Stratton Corp. 198,475
13,500 Brunswick Corp. 335,813
11,400 Case Corp. 567,862
52,100 Caterpillar, Inc. 2,855,731
5,400 Cincinnati Milacron, Inc. 95,850
476,200 Cisco Systems, Inc.* 32,649,462
249,000 Compaq Computer Corp.# 5,711,437
6,100 Cummins Engine Co., Inc. 303,856
7,400 Data General Corp.* 155,862
34,200 Deere & Co. 1,323,113
372,100 Dell Computer Corp.* 15,558,431
30,500 Dover Corp. 1,246,688
148,400 EMC Corp.*# 10,601,325
45,900 Gateway 2000, Inc.*# 2,039,681
148,400 Hewlett-Packard Co. 13,652,800
265,000 IBM Corp. 32,164,375
24,200 Ingersoll-Rand Co. 1,329,488
18,900 Lexmark International Group, Inc.* 1,521,450
8,700 McDermott International, Inc. 176,175
18,200 Pall Corp. 422,013
39,200 Pitney Bowes, Inc. 2,388,750
32,600 Seagate Technology, Inc.* 1,004,488
27,600 Silicon Graphics, Inc.* 301,875
39,500 Solectron Corp.* 2,836,594
28,300 Tandy Corp. 1,462,756
25,000 Tenneco Inc. 425,000
9,100 Timken Co. 146,737
122,500 Tyco International Ltd. 12,648,125
44,800 Unisys Corp.* 2,021,600
-------------
153,901,143
-------------
INSURANCE AGENTS, BROKERS & SERVICE (0.3%)
37,500 Aon Corp. 1,108,594
24,500 Humana, Inc.* 168,437
38,700 Marsh & McLennan Cos., Inc. 2,650,950
-------------
3,927,981
-------------
INSURANCE CARRIERS (4.2%)
20,600 Aetna Life & Casualty, Inc. $ 1,014,550
38,900 AFLAC, Inc. 1,628,937
116,900 Allstate Corp. 2,915,194
36,500 American General Corp. 2,306,344
226,800 American International Group, Inc 19,717,426
25,800 Chubb Corp. 1,285,162
29,200 CIGNA Corp.# 2,270,300
24,200 Cincinnati Financial Corp. 908,257
494,600 Citigroup, Inc. 21,762,400
33,100 Hartford Financial Services Group 1,352,962
15,400 Jefferson-Pilot Corp. 973,087
29,100 Lincoln National Corp. 1,093,069
15,800 Loews Corp. 1,108,963
14,600 MBIA, Inc. 680,725
16,000 Mgic Investment Corp. 764,000
10,700 Progressive Corp. 874,056
20,800 Providian Financial Corp. 1,647,100
19,300 Safeco Corp.# 540,400
33,200 St. Paul Cos., Inc.# 913,000
19,500 Torchmark Corp. 504,563
25,400 United Healthcare Corp. 1,236,663
35,000 UnumProvident Corp. 1,030,313
9,600 Wellpoint Health Networks, Inc.* 547,200
--------------
67,074,671
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.0%)
15,700 Louisiana-Pacific Corp. 245,313
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (1.8%) 52,969
7,500 Bard (C.R.), Inc. 352,969
8,400 Bausch & Lomb, Inc. 553,875
36,700 Becton, Dickinson and Co. 1,029,894
16,500 Biomet, Inc. 434,156
60,600 Boston Scientific Corp.* 1,496,062
46,400 Eastman Kodak Co. 3,500,300
44,300 Guidant Corp.* 2,375,587
18,700 Honeywell, Inc. 2,081,544
12,500 Johnson Controls, Inc. 828,906
12,900 KLA-Tencor Corp.* 838,500
171,800 Medtronic, Inc. 6,098,900
6,600 Millipore Corp. 247,913
14,900 PE Corp - PE Biosystems Group 1,076,525
6,500 Polaroid Corp. 169,000
49,500 Raytheon Co., Class B 2,456,438
12,400 St. Jude Medical, Inc.* 390,600
6,900 Tektronix, Inc. 231,150
23,100 Thermo Electron Corp.* 310,406
97,100 Xerox Corp.# 4,072,131
--------------
28,544,856
--------------
METAL MINING (0.2%)
57,100 Barrick Gold Corp. 1,241,925
13,200 Cyprus Amax Minerals Co. 259,050
23,900 Freeport-McMoran Inc., Class B * 371,944
38,100 Homestake Mining Co. 350,044
24,500 Newmont Mining Corp.# 633,937
47,700 Placer Dome, Inc. 709,538
--------------
3,566,438
--------------
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
------------ ------------------------------ -------------
MINING & QUARRYING OF NONMETALLIC MINERALS,
EXCEPT FUELS (0.0%)
14,700 Vulcan Materials Co. $ 538,388
-------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.2%)
28,500 Hasbro, Inc. 610,969
12,900 ITT Industries, Inc. 410,381
5,000 Jostens, Inc. 95,625
61,500 Mattel, Inc.# 1,168,500
1,200 NACCO Industries, Inc. 83,850
-------------
2,369,325
-------------
MISCELLANEOUS RETAIL (0.6%)
20,450 Bed Bath & Beyond, Inc.* 714,472
57,400 CVS Corp. 2,342,638
5,800 Longs Drug Stores, Inc. 173,275
54,900 Office Depot, Inc.* 559,294
37,900 Rite Aid Corp.# 523,494
68,100 Staples, Inc.* 1,485,431
36,300 Toys 'R' Us, Inc.* 544,500
147,000 Walgreen Co.# 3,730,125
-------------
10,073,229
-------------
MOTION PICTURES (0.1%)
31,800 Unicom Corp.# 1,174,613
-------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.2%)
65,800 American Express Co. 8,858,325
106,600 Associates First Capital Corp. 3,837,600
28,900 Capital One Financial Corp.# 1,127,100
16,500 Countrywide Credit Industries,Inc. 532,125
150,100 Fannie Mae 9,409,394
101,800 Freddie Mac 5,293,600
70,100 Household International, Inc. 2,812,762
117,400 MBNA Corp.# 2,678,188
23,600 SLM Holding Corp. 1,014,800
-------------
35,563,894
-------------
OIL & GAS EXTRACTION (0.6%)
18,700 Anadarko Petroleum Corp. 571,519
16,700 Apache Corp. 721,231
26,000 Burlington Resources, Inc. # 955,500
7,200 Helmerich & Payne, Inc. 182,250
51,100 Occidental Petroleum Corp. 1,181,687
12,200 Rowan Cos., Inc.* 198,250
80,200 Schlumberger Ltd. 4,997,463
36,900 Union Pacific Resources Group,Inc. 592,706
-------------
9,400,606
-------------
PAPER & ALLIED PRODUCTS (1.3%)
16,600 Avery Dennison Corp. 875,650
7,700 Bemis Co., Inc. 260,837
8,400 Boise Cascade Corp. 306,075
14,100 Champion International Corp. 724,387
32,400 Fort James Corp. 864,675
25,100 Georgia-Pacific Group# 1,016,550
21,800 IKON Office Solutions, Inc. 232,987
60,600 International Paper Co. 2,912,587
PAPER & ALLIED PRODUCTS (CONTINUED)
78,000 Kimberly-Clark Corp. $ 4,095,000
15,000 Mead Corp. 515,625
59,000 Minnesota Mining and
Manufacturing Co. 5,667,688
8,200 Temple-Inland, Inc. 496,100
14,700 Westvaco Corp. 376,688
29,500 Weyerhaeuser Co.# 1,699,938
16,300 Willamette Industries, Inc. 702,938
--------------
20,747,725
--------------
PERSONAL SERVICES (0.1%)
14,300 H&R Block, Inc. 621,156
39,800 Service Corp. International 420,388
--------------
1,041,544
--------------
PETROLEUM REFINING & RELATED INDUSTRIES (5.3%)
13,300 Amerada Hess Corp.# 814,625
10,600 Ashland, Inc. 356,425
47,200 Atlantic Richfield Co. 4,183,100
96,100 Chevron Corp. 8,528,875
91,900 Conoco, Inc. Class B 2,515,762
355,600 Exxon Corp. 27,003,375
12,700 Kerr-McGee Corp.# 699,294
114,700 Mobil Corp. 11,556,025
37,100 Phillips Petroleum Co. 1,808,625
314,100 Royal Dutch Petroleum Co.-NY
Registered Shares 18,551,531
13,300 Sunoco, Inc. 364,088
81,000 Texaco, Inc. 5,113,125
35,500 Unocal Corp. 1,315,719
45,200 USX-Marathon Group, Inc. 1,322,100
--------------
84,132,669
--------------
PHARMACEUTICAL PREPARATIONS (0.9%)
191,400 American Home Products Corp. 7,943,100
74,700 Amgen, Inc.* 6,088,050
--------------
14,031,150
--------------
PRIMARY METAL INDUSTRIES (0.5%)
33,100 Alcan Aluminum Ltd.# 1,034,375
53,700 Alcoa, Inc.# 3,332,756
27,900 Allegheny Teledyne, Inc. 470,812
5,800 ASARCO, Inc. 155,513
19,200 Bethlehem Steel Corp.* 141,600
18,400 Engelhard Corp. 334,650
28,100 Inco, Ltd.* 600,638
12,800 Nucor Corp. 609,600
8,500 Phelps Dodge Corp. 468,031
9,200 Reynolds Metals Co. 555,450
12,900 USX-U.S. Steel Group, Inc. 332,175
13,500 Worthington Industries, Inc. 229,500
--------------
8,265,100
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.7%)
9,900 American Greetings Corp. 254,925
11,100 Deluxe Corp. 377,400
13,300 Dow Jones & Co., Inc. 709,887
41,000 Gannett Co., Inc. 2,836,688
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
------------ ------------------------------ -------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (CONTINUING)
11,900 Knight-Ridder, Inc. # $ 653,012
28,800 McGraw-Hill Cos., Inc. 1,393,200
7,600 Meredith Corp. 275,975
25,500 New York Times Co. 956,250
18,700 R.R. Donnelley & Sons Co. 539,963
189,400 Time Warner, Inc.# 11,506,050
10,500 Times Mirror Co. 691,031
34,700 Tribune Co.# 1,726,325
102,000 Viacom, Inc., Class B * 4,309,500
-------------
26,230,206
-------------
RAILROAD TRANSPORTATION (0.5%)
68,100 Burlington Northern Santa Fe Corp. 1,872,750
31,900 CSX Corp.# 1,351,762
16,200 Kansas City Southern Industries, Inc 752,288
55,700 Norfolk Southern Corp. 1,364,650
36,300 Union Pacific Corp.# 1,744,669
-------------
7,086,119
-------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.5%)
5,900 Armstrong World Industries# 265,131
11,100 Cooper Tire and Rubber Co. 195,637
22,900 Goodyear Tire & Rubber Co. 1,102,063
36,700 Illinois Tool Works, Inc. 2,736,444
41,300 Newell Rubbermaid, Inc.# 1,179,631
41,200 Nike, Inc., Class B 2,343,250
8,200 Reebok International Ltd.* 87,638
12,200 Sealed Air Corp.* 626,013
8,400 Tupperware Corp. 170,100
-------------
8,705,907
-------------
.
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES
& SERVICES (1.2%)
17,100 Bear Stearns Cos., Inc. 657,281
119,800 Charles Schwab Corp. 4,035,763
36,900 Franklin Resources, Inc. 1,134,675
17,600 Lehman Brothers Holding, Inc. 1,026,300
54,100 Merrill Lynch & Co., Inc. 3,634,844
83,600 Morgan Stanley Dean Witter & Co. 7,456,075
21,300 Paine Webber Group, Inc. 772,125
-------------
18,717,063
-------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (0.2%)
35,800 Corning, Inc.# 2,454,538
8,000 Owens Corning 173,500 C
22,800 Owens-Illinois, Inc.* 451,725
-------------
3,079,763
-------------
TEXTILE MILL PRODUCTS (0.0%)
4,900 Russell Corp. 69,519
2,600 Springs Industries, Inc., Class A 88,237
-------------
157,756
-------------
TOBACCO PRODUCTS (0.8%)
350,100 Philip Morris Cos., Inc. 11,969,044
-------------
TRANSPORTATION BY AIR (0.3%)
22,000 AMR Corp.* $ 1,199,000
20,600 Delta Airlines, Inc.# 999,100
43,600 FDX Corp.* 1,689,500
73,800 Southwest Airlines Co. 1,120,838
10,500 US Airways Group, Inc.* 275,625
--------------
5,284,063
--------------
TRANSPORTATION EQUIPMENT (2.7%)
80,600 Allied-Signal, Inc. 4,830,962
140,700 Boeing Co. 5,997,337
24,300 Dana Corp. 902,138
82,800 Delphi Automotive Systems Corp. 1,329,975
10,600 Eaton Corp. 914,913
4,900 Fleetwood Enterprises, Inc. 98,919
177,200 Ford Motor Co. 8,893,225
29,200 General Dynamics Corp. 1,823,175
94,300 General Motors Corp. 5,935,006
57,900 Lockheed Martin Corp.# 1,892,606
9,700 Navistar International Corp.* 451,050
10,200 Northrop Grumman Corp. 648,338
11,500 PACCAR, Inc. 585,063
28,000 Rockwell International Corp. 1,470,000
22,000 Textron, Inc. 1,702,250
17,800 TRW, Inc. 885,550
70,500 United Technologies Corp. 4,181,531
--------------
42,542,038
--------------
WATER TRANSPORTATION (0.2%)
89,800 Carnival Corp. 3,906,300
--------------
WHOLESALE TRADE-DURABLE GOODS (0.1%)
26,200 Genuine Parts Co. 695,937
13,700 Grainger (W.W.), Inc. 658,456
4,200 Potlatch Corp. 172,988
--------------
1,527,381
--------------
WHOLESALE TRADE-NONDURABLE GOODS (0.3%)
39,900 Cardinal Health, Inc. 2,174,550
20,300 SUPERVALU, Inc. 442,794
48,500 Sysco Corp. 1,700,531
--------------
4,317,875
--------------
Total Common Stocks (cost $1,024,832,164) 1,550,018,336
CORPORATE NOTES (0.2%)
1,605,000 NationsBank Corp., 5.47% V/R, 1,605,000
7/01/04
1,600,000 Spintab/Swedmortgage, 6.01%,
V/R, 12/20/99 1,599,520
--------------
Total Corporate Notes (cost $3,197,667) 3,204,520
--------------
See Notes to Financial Statements 35 CORE TRUST (DELAWARE)
<PAGE>
- -------------------------------------------------------------------------
INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999
- -------------------------------------------------------------------------
Face Amount Security Description Value
- ----------------------- -------------------------------- ---------------
TIME DEPOSITS (1.9%)
29,635,292 Union Bank of Switzerland, 5.63%, $929,635,292
10/01/99 (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, 12/17/99, 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 36 CORE TRUST (DELAWARE)
<PAGE>
FOR MORE INFORMATION FORUM
FUNDS
INVESTORS EQUITY FUND
EQUITY INDEX FUND
TRANSFER AGENT
Forum Shareholder Services, LLC
Two Portland Square
Portland, ME 04101
DISTRIBUTOR
Forum Fund Services, LLC
Two Portland Square
Portland, ME 04101
[Forum Logo]
FORUM FUNDS
P.O. Box 446
Portland, Maine 04112
800-94FORUM
800-943-6786
207-879-0001
This report is authroized for distribution only to shareholders and
to others who have received a copy of the Funds' prospectus.
<PAGE>
