- -------------------------------------------------------------------------------
CoreFunds,Inc.
- -------------------------------------------------------------------------------
FIDUCIARY RESERVE
SEMI-ANNUAL REPORT
December 31, 1995
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS CoreFund Money Market Funds
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Reserve (000) (000)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER - 85.8%
AI Credit
5.640%, 01/17/96 $10,000 $ 9,975
Ameritech Capital
5.580%, 01/22/96 5,000 4,984
Asset Securitiation
5.700%, 01/26/96 10,000 9,960
AT&T
5.470%, 04/18/96 10,000 9,836
Baltimore Gas & Electric
5.680%, 01/18/96 10,000 9,973
Banc One
5.680%, 01/08/96 10,000 9,989
CAFCO
5.700%, 01/30/96 5,000 4,977
Campbell Soup
5.620%, 02/27/96 10,000 9,911
Ciesco
5.700%, 01/23/96 10,000 9,965
Deutsche Bank
5.720%, 01/05/96 10,000 9,994
E.I. DuPont de Nemours
5.670%, 01/10/96 10,000 9,986
Ford Motor Credit
5.560%, 03/22/96 10,000 9,875
General Electric
5.580%, 03/12/96 10,000 9,890
Goldman Sachs
5.620%, 03/06/96 10,000 9,899
Hewlett Packard
5.630%, 01/24/96 10,000 9,964
J.C. Penney Funding
5.650%, 02/16/96 10,000 9,928
Merrill Lynch
5.800%, 01/02/96 10,000 9,998
Metropolitan Life Funding
5.630%, 02/02/96 10,000 9,950
Mitsubishi International
5.680%, 02/13/96 10,000 9,932
National Rural Utility
5.650%, 02/12/96 10,000 9,934
New Center Asset Trust
6.000%, 01/02/96 10,000 9,998
</TABLE>
1
<PAGE>
STATEMENT OF NET ASSETS (continued) CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Reserve (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pepsi Co
5.630%, 05/10/96 $ 3,800 $ 3,723
Pitney Bowes Credit
5.670%, 01/22/96 10,000 9,967
Proctor & Gamble
5.670%, 01/19/96 10,000 9,972
Province of Alberta
5.420%, 05/08/96 10,000 9,807
Province of British Columbia
5.430%, 05/13/96 7,500 7,350
Province of Quebec
5.650%, 01/09/96 10,000 9,987
Republic Bank of New York
5.630%, 01/31/96 3,350 3,334
Schering-Plough
5.550%, 01/16/96 10,000 9,977
Southwestern Bell
5.610%, 01/29/96 5,000 4,978
5.650%, 02/05/96 5,000 4,972
Swedish Export Credit
5.570%, 01/16/96 5,000 4,988
Toronto Dominion Bank
5.700%, 01/05/96 10,000 9,994
Weyerhauser
5.800%, 01/11/96 10,000 9,984
--------
TOTAL COMMERCIAL PAPER
(Cost $297,950,841) 297,951
--------
U.S.GOVERNMENT AGENCY OBLIGATIONS - 2.9%
FNMA
5.310%, 12/11/96 10,000 9,988
--------
Total U.S.Government Agency Obligations
(COST $9,988,000) 9,988
--------
MORTGAGE RELATED - 0.4%
Case Equipment Loan Trust 1995-B, Class A-1
5.825%, 09/15/96 1,240 1,240
--------
TOTAL MORTGAGE RELATED
(Cost $1,239,912) 1,240
--------
</TABLE>
2
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (continued) CoreFund Money Market Funds
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Reserve (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MASTER NOTES - 0.7%
Associates Corporation of North America
5.440%, $ 627 $ 627
SLMA
5.460%, 1,714 1,714
--------
TOTAL MASTER NOTES
(Cost $2,340,823) 2,341
--------
TIME DEPOSITS - 5.8%
Banque Paribas
5.940%, 01/02/96 10,000 10,000
First Union Bank
5.940%, 01/02/96 5,000 5,000
Harris Bank
5.880%, 01/02/96 5,000 5,000
--------
TOTAL TIME DEPOSITS
(Cost $20,000,000) 20,000
--------
REPURCHASE AGREEMENTS - 4.9%
Nations Bank 5.92%, dated 12/29/95, matures 01/02/96, repurchase price
$10,065,578 (collateralized by U.S. Treasury Note, par value $9,960,000,
6.125%, matures
05/15/98: market value $10,315,974) 10,000 10,000
Swiss Bank 5.65%, dated 12/29/95, matures 01/02/96,
repurchase price $7,004,000 (collateralized by U.S.
Treasury Note, par value $7,000,000, 6.000%, matures
08/31/97: market value $7,362,609) 7,000 7,000
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $17,000,000) 17,000
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.5%
(Cost $348,519,576) 348,520
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OTHER ASSETS AND LIABILITIES - (0.5)% (1,749)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares ($0.001 par value - 750 million authorized) based on
346,771,180 outstanding shares 346,771
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $346,771
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NET ASSET VALUE & REDEMPTION PRICE PER SHARE $ 1.00
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<FN>
FNMA -- Federal National Mortgage Association
SLMA -- Student Loan Marketing Association
</FN>
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (000) CoreFund Money Market Funds
For the six month period ended December 31, 1995 (Unaudited)
Fiduciary Reserve
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $11,571
-------
EXPENSES:
Investment advisory fees 993
Waiver of investment advisory fees (993)
Administrative fees 497
Waiver of administrative fees (278)
Registration & filing fees 26
Professional fees 34
Pricing fees 6
Trustee fees 14
Insurance fees 11
Miscellaneous 29
-------
Total expenses 339
-------
NET INVESTMENT INCOME 11,232
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $11,232
=======
See accompanying notes to financial statements.
4
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (000) CoreFund Money Market Funds
For the six month period ended December 31, 1995
and the year ended June 30, 1995
(Unaudited)
Fiduciary Reserve
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
07/01/95 07/01/94
TO 12/31/95 TO 06/31/95
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income $ 11,232 $ 21,503
Net realized (loss) on securities sold 0 (4)
--------- ---------
Net increase in net assets resulting
from operations 11,232 21,499
--------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income (11,232) (21,503)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 224,287 546,029
Cost of shares redeemed (284,113) (522,242)
--------- ---------
Increase (decrease) in net assets derived from capital
share transactions (59,826) 23,787
--------- ---------
NET INCREASE (DECREASE) IN NET ASSETS: (59,826) 23,783
NET ASSETS:
Beginning of period 406,597 382,814
--------- ---------
End of period $ 346,771 $ 406,597
========= =========
SHARES ISSUED AND REDEEMED:
Shares issued 224,287 546,029
Shares redeemed (284,113) (522,242)
--------- ---------
Increase (decrease) in net shares derived from capital
share transactions (59,826) 23,787
--------- ---------
OUTSTANDING SHARES:
Beginning of period 406,597 382,810
--------- ---------
End of period 346,771 406,597
========= =========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
FINANCIAL HIGHLIGHTS CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
Fiduciary Reserve
- -------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Ratio of Ratio of
Net Net Net Ratio Expenses NetIncome
Asset Distributions Asset Assets Ratio of Net to Average to Average
Value Net from Net Value End of of Expenses Income Net Assets Net Assets
Beginning Investment Investment End of Total Period to Average to Average (Excluding (Excluding
of Period Income Income 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 2.89%* $346,771 0.17% 5.66% 0.81% 5.02%
For the year ended
June 30, 1995 $1.00 0.05 (0.05) $1.00 5.46% $406,597 0.17% 5.35% 0.81% 4.71%
For the year ended
June 30, 1994 $1.00 0.03 (0.03) $1.00 3.31% $382,814 0.16% 3.24% 0.84% 2.56%
For the year ended
June 30, 1993 $1.00 0.03 (0.03) $1.00 3.29% $424,363 0.17% 3.25% 0.81% 2.61%
For the year ended
June 30, 1992 $1.00 0.05 (0.05) $1.00 5.04% $416,945 0.18% 4.96% 0.83% 4.31%
For the year ended
June 30, 1991 $1.00 0.07 (0.07) $1.00 7.49% $453,947 0.15% 7.05% 0.80% 6.40%
For the period ended
June 30, 1990 (1) $1.00 0.08 (0.08) $1.00 8.03%* $232,091 0.13% 8.42% 0.83% 7.72%
<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 Reserve commenced operations August 7, 1989.
Ratios for this period have been annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
1. ORGANIZATION
The CoreFund Fiduciary 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
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 Reserve.
Security Valuation -- Investment securities of the Fiduciary 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.
7
<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.
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 June 23, 1987, 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
Reserve Portfolio. For the period ended December 31, 1995, CoreStates Advisers
earned $993,097 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.
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 Reserve Portfolio. Such a fee is computed
daily and paid monthly. For the period ended December 31, 1995, administrative
fees totaled $496,549 of which $278,072 was voluntarily waived in order to
assist the Portfolio in maintaining a competitive expense ratio.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
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.
For taxpayers filing on a calendar year basis, this notice is for informational
purposes only.
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.
