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CoreFunds,Inc.
FIDUCIARY TREASURY RESERVE
SEMI-ANNUAL REPORT
December 31, 1995
<PAGE>
Statement of Net Assets CoreFund Money Market Funds
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December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Treasury Reserve (000) (000)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 50.1%
U.S. Treasury Bills
5.450%(DAGGER), 01/04/96 $ 500 $ 500
5.450%(DAGGER), 01/11/96 500 499
5.370%(DAGGER), 01/18/96 500 499
5.390%(DAGGER), 01/25/96 600 598
5.360%(DAGGER), 02/15/96 500 497
5.290%(DAGGER), 02/22/96 500 496
5.310%(DAGGER), 03/07/96 1,000 990
5.310%(DAGGER), 03/14/96 500 495
5.330%(DAGGER), 03/28/96 1,000 987
5.320%(DAGGER), 04/04/96 500 493
5.320%(DAGGER), 04/11/96 300 296
5.300%(DAGGER), 04/18/96 500 492
5.290%(DAGGER), 04/25/96 1,000 983
5.480%(DAGGER), 05/02/96 500 491
U.S. Treasury Note
5.500%, 04/30/96 500 499
U.S. Treasury STRIPS
6.195%(DAGGER), 05/15/96 1,000 978
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $9,793,037) 9,793
------
REPURCHASE AGREEMENTS - 50.5%
Aubrey Lanston 5.875%, dated 12/29/95, matures 1/02/96, repurchase price
$200,131 (collateralized by U.S. Treasury Note, par value $190,000, 8.75%,
matures 10/15/97:
market value $208,508) 200 200
First National Bank of Chicago 5.85%, dated 12/29/95,
matures 1/02/96, repurchase price $4,002,600
(collateralized by U.S. Treasury Bill, par value $4,220,000,
matures 8/22/96: market value $4,089,602) 4,000 4,000
Goldman Sachs 5.83%, dated 12/29/95, matures 1/02/96,
repurchase price $200,130 (collateralized by U.S. Treasury
Note, par value $180,000, 7.875%, matures 8/15/01:
market value $211,398) 200 200
Morgan Stanley 5.87%, dated 12/29/95, matures 1/02/96,
repurchase price $700,457 (collateralized by U.S. Treasury
Note, par value $685,000, 6.125%, matures 9/30/00:
market value $724,772) 700 700
</TABLE>
1
<PAGE>
STATEMENT OF NET ASSETS (continued) CoreFund Money Market Funds
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December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Treasury Reserve (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Nations Bank 5.92%, dated 12/29/95, matures 1/02/96, repurchase price
$100,656 (collateralized by U.S. Treasury Note, par value $100,000,
6.125%, matures 5/15/98:
market value $103,574) $ 100 $ 100
Sanwa Bank 5.85%, dated 12/29/95, matures 1/02/96,
repurchase price $4,002,600 (collateralized by U.S. Treasury
Note, par value $1,945,000, 5.75%, matures 10/31/00;
U.S. Treasury STRIPS, par value $2,760,000, matures
8/15/00: total market value $2,798,408) 4,000 4,000
Swiss Bank 5.65%, dated 12/29/95, matures 1/02/96,
repurchase price $478,300 (collateralized by U.S. Treasury
Note, par value $478,000, 6.00%, matures 8/31/97:
market value $502,765) 478 478
Swiss Bank 5.85%, dated 12/29/95, matures 1/02/96,
repurchase price $200,130 (collateralized by U.S. Treasury
Note, par value $200,000, 6.00%, matures 8/31/97:
market value $210,682) 200 200
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $9,878) 9,878
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.6%
(Cost $19,671,037) 19,671
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OTHER ASSETS AND LIABILITIES, NET - (0.6)% (120)
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NET ASSETS:
Portfolio Shares ($0.001 par value - 250 million authorized) based on
19,549,580 outstanding shares 19,550
Accumulated Net Realized Gain on Investments 1
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TOTAL NET ASSETS - 100.0% $19,551
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NET ASSET VALUE & REDEMPTION PRICE PER SHARE $ 1.00
<FN>
STRIPS -- Separately Traded Registered Interest and Principal of Securities
(DAGGER) Effective Yield
</FN>
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
STATEMENT OF OPERATIONS (000) CoreFund Money Market Funds
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For the six month period ended December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Fiduciary Treasury Reserve
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest $593
----
EXPENSES:
Investment advisory fees 51
Waiver of investment advisory fees (51)
Administrative fees 26
Waiver of administrative fees (14)
Taxes other than income 2
Registration & filing fees 0
Professional fees 3
Miscellaneous 3
----
Total expenses 20
----
NET INVESTMENT INCOME 573
NET REALIZED GAIN ON SECURITIES SOLD 1
----
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $574
====
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000) CoreFund Money Market Funds
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For the six month period ended December 31, 1995 (Unaudited)
and the year ended June 30, 1995
<TABLE>
<CAPTION>
Fiduciary Treasury Reserve
- ------------------------------------------------------------------------------------------------------------------
07/01/95 07/01/94
to 12/31/95 to 06/31/95
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income $ 573 $ 1,111
Net realized gain on securities sold 1 1
---------- ---------
Net increase in net assets resulting
from operations 574 1,112
---------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income (573) (1,111)
---------- ---------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 12,540 25,716
Cost of shares redeemed (11,386) (27,684)
--------- ----------
Increase (decrease) in net assets derived from capital
share transactions 1,154 (1,968)
--------- ---------
NET DECREASE IN NET ASSETS: 1,155 (1,967)
NET ASSETS:
Beginning of period 18,396 20,363
--------- ---------
End of period $ 19,551 $ 18,396
========= =========
SHARES ISSUED AND REDEEMED:
Shares issued 12,540 25,716
Shares redeemed (11,386) (27,684)
--------- ---------
Increase (decrease) in net shares derived from capital
share transactions 1,154 (1,968)
--------- ---------
OUTSTANDING SHARES:
Beginning of period 18,395 20,363
--------- ---------
End of period 19,549 18,395
========= =========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
FINANCIAL HIGHLIGHTS CoreFund Money Market Funds
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December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Fiduciary Treasury Reserve
- -----------------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
Ratio Ratio of
Net Net Ratio of Expenses Net Income
Asset Distributions Net Assets Ratio of Net to Average to Average
Value Net from Net Asset Value End of Expenses Income Net Assets Net Assets
Beginning Investment Investment End Total of Period to Average to Average (Excluding (Excluding
of Period Income Income of Period Return (000) Net Assets Net Assets Waivers) Waivers)
--------- ---------- ------------- ----------- ------ --------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
For the six month
period ended
December 31, 1995** $1.00 0.03 (0.03) $1.00 2.85%* $19,551 0.19% 5.60% 0.83% 4.96%
For the year ended
June 30, 1995 $1.00 0.05 (0.05) $1.00 5.24% $18,396 0.23% 5.09% 0.87% 4.45%
For the year ended
June 30, 1994 $1.00 0.03 (0.03) $1.00 3.10% $20,363 0.28% 3.03% 0.91% 2.40%
For the year ended
June 30, 1993 $1.00 0.03 (0.03) $1.00 3.17% $27,614 0.18% 3.19% 0.85% 2.52%
For the period ended
June 30, 1992 (1) $1.00 0.02 (0.02) $1.00 2.00%* $49,328 0.05% 3.95% 0.80% 3.20%
- --------------------
<FN>
* Return is for the period indicated and has not been annualized.
** Ratios for the six month period ended December 31, 1995 have been
annualized.
(1) The Fiduciary Treasury Reserve commenced operations on December 10, 1991.
Ratios for this period have been annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS CoreFund Money Market Funds
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December 31, 1995 (Unaudited)
1. ORGANIZATION
The CoreFund Fiduciary Treasury Reserve is a Portfolio offered by CoreFunds,
Inc. (the "Company"), an open-end investment company registered under the
Investment Company Act of 1940, as amended.
The Company is presently authorized to offer shares in the following Portfolios
(the "Portfolios"):
EQUITY PORTFOLIOS: MONEY MARKET PORTFOLIOS:
Growth Equity Fund Cash Reserve
Value Equity Fund Treasury Reserve
Equity Index Fund Tax-Free Reserve
International Growth Fund Fiduciary Reserve
Balanced Fund Fiduciary Treasury Reserve
Fiduciary Tax-Free Reserve
FIXED INCOME PORTFOLIOS:
Government Income Fund
Intermediate Bond Fund
Intermediate Municipal Bond Fund
Global Bond Fund
Pennsylvania Municipal Bond Fund
New Jersey Municipal Bond Fund
The financial statements included herein present only those of the Fiduciary
Treasury Reserve Portfolio. The financial statements of the remaining Portfolios
are presented separately. The assets of each Portfolio are segregated, and a
shareholder's interest is limited to the Portfolio in which shares are held. The
Fund's prospectus provides a description of the Fund's investment objectives,
policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Fiduciary Treasury Reserve.
Security Valuation -- Investment securities of the Fiduciary Treasury Reserve
Portfolio are stated at amortized cost which approximates market value. Under
this valuation method, purchase discounts and premiums are accreted and
amortized ratably to maturity and are included in interest income.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
Security Transactions and Investment Income -- Security transactions are
accounted for on the trade date of the security purchase or sale. Costs used in
determining net realized capital gains and losses on the sale of securities are
those of the specific securities sold, adjusted for the accretion and
amortization of the purchase discounts and premiums during the respective
holding period. Interest income is recorded on the accrual basis.
Repurchase Agreements -- Securities pledged as collateral for Repurchase
Agreements are held by each Portfolio's custodian bank until maturity of the
Repurchase Agreements. Provisions of the Agreements and procedures adopted by
the Adviser ensure that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default by the counterparty. If
the counterparty defaults and the value of the collateral declines or if the
counterparty enters into insolvency proceedings, realization of the collateral
by the Portfolio may be delayed or limited.
Expenses -- Expenses that are directly related to the Portfolio are charged
directly to that Portfolio. Other operating expenses of the Company are prorated
to the Portfolio on the basis of relative net assets.
Distributions to Shareholders -- Distributions from net investment income are
declared on a daily basis and are payable on the first business day of the
following month. Any net realized capital gains on sales of securities for a
Portfolio are distributed to its shareholders at least annually.
Federal Income Taxes -- It is the Portfolio's intention to continue to qualify
as a regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is required.
Use of Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that effect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
Pursuant to an investment advisory agreement dated March 25, 1991, investment
advisory services are provided to the Company by CoreStates Investment Advisers,
Inc. ("CoreStates Advisers"), a wholly-owned subsidiary of CoreStates Bank, N.A.
("CoreStates Bank"), itself a wholly-owned subsidiary of CoreStates Financial
Corp. Under the terms of such agreement, CoreStates Advisers is entitled to
receive an annual fee of 0.50% on the average net assets of the Fiduciary
Treasury Reserve Portfolio. For the year ended December 31, 1995, CoreStates
Advisers earned $51,188 in investment advisory fees, all of which was
voluntarily waived in order to assist the Portfolio in maintaining a competitive
expense ratio.
CoreStates Bank also serves as Custodian to the Company. No fees are being paid
to CoreStates Bank for such services.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
4. ADMINISTRATIVE, DISTRIBUTION, AND TRANSFER AGENT SERVICES
Pursuant to an administration agreement dated October 30, 1992, as amended June
1, 1995, SEI Financial Management Corporation ("SFM"), a wholly-owned subsidiary
of SEI Corporation, acts as the Portfolio's Administrator. Under the terms of
such agreement, SFM is entitled to receive an annual fee of 0.25% on the average
daily net assets of the Fiduciary Treasury Reserve Portfolio. Such a fee is
computed daily and paid monthly. For the year ended December 31, 1995,
administrative fees totaled $25,594 of which $14,333 was voluntarily waived in
order to assist the Portfolio in maintaining a competitive expense ratio.
Effective for the period July 1, 1995 to November 16, 1995, SEI Financial
Management Corporation acted as the Transfer Agent of the Portfolio. Pursuant to
a transfer agency agreement dated November 16, 1995, State Street Bank and Trust
Company acts as the Portfolio's Transfer Agent. As such, State Street Bank and
Trust Company provides transfer agency, dividend disbursing, shareholder
servicing and administrative services for the Portfolio.
On November 2, 1992, SEI Financial Services Company ("SFS"), also a wholly-owned
subsidiary of SEI Corporation, became the Portfolio's exclusive Distributor
pursuant to a distribution agreement dated October 30, 1992.
Certain officers of the Company are also officers of the Administrator. Such
officers are not paid fees by the Portfolio.
The Portfolio has paid legal fees to a law firm in which the secretary of the
Company is a partner.
8
<PAGE>
NOTES
9
<PAGE>
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Corporation. The report is not
authorized for distribution to prospective investors in the Corporation unless
preceded or accompanied by an effective prospectus. Shares in the Fund are not
deposits or obligations of, or guaranteed or endorsed by, CoreStates Bank, N.A.,
the parent corporation of the Fund's investment adviser. Such shares are also
not federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other agency.
