CoreFunds,Inc.
- -------------------------------------------------------------------------------
FIDUCIARY TAX-FREE RESERVE
SEMI-ANNUAL REPORT
December 31, 1995
x
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS CoreFund Money Market Funds
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Tax-Free Reserve (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS - 99.2%
ALABAMA - 10.1%
Alabama State Housing Finance Authority Revenue Bond
5.250%, 01/07/96 (A) (B)(C) $ 2,400 $ 2,400
Winfield, Alabama Industrial Development Authority Revenue
Bond for Union Underwear Project
5.250%, 01/07/96 (A) (B)(C) 1,900 1,900
Montgomery, Alabama TECP
3.600%, 04/01/96 (C) 2,760 2,760
3.600%, 04/01/96 (C) 700 700
-------
Total Alabama 7,760
-------
ALASKA - 1.6%
Valdez, Alaska TECP
3.750%, 01/31/96 (C) 125 125
3.800%, 01/16/96 (C) 1,100 1,100
-------
Total Alaska 1,225
-------
COLORADO - 1.8%
Moffat County, Colorado Pollution Control Revenue Bond
4.650%, 01/07/96 (A) (B)(C) 1,400 1,400
-------
CONNECTICUT - 3.1%
Connecticut State Health and Educational Facilities Revenue
Bond for Bridgeport Hospital Project
5.050%, 01/07/96 (A) (B)(C) 2,400 2,400
-------
FLORIDA - 7.5%
Dade County, Florida Fixed Capital Asset Acquisition Revenue
Bond, Ser 1990
5.650%, 01/07/96 (A) (B)(C) 1,400 1,400
Florida Municipal Power TECP
3.450%, 03/01/96 (C) 750 750
Sunshine State Florida TECP
3.600%, 02/12/96 (C) 2,000 2,000
Florida State Housing Finance Agency Revenue Bond for
Huntington Project
5.400%, 01/07/96 (A) (B)(C) 200 200
Florida State Housing Finance Agency Revenue Bond for
Carlton Project, Ser EEE
5.350%, 01/07/96 (A) (B)(C) 1,020 1,020
</TABLE>
1
<PAGE>
STATEMENT OF NET ASSETS (continued) CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Tax-Free Reserve (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Orange County, Florida Industrial Development Authority
Revenue Bond for Orlando International Dr. Project
4.000%, 01/03/96 (A) (B)(C) $ 400 $ 400
-------
Total Florida 5,770
-------
HAWAII - 1.0%
Hawaii State, Ser CD GO
3.850%, 02/01/96 750 750
-------
ILLINOIS - 6.7%
Illinois State Development Finance Authority Revenue Bond for
Illinois Power Company Project, Ser B
5.000%, 01/07/96 (A) (B)(C) 1,400 1,400
Illinois State Health Facilities Authority Revenue Bond for
Franciscan Village Project, Series A
5.200%, 01/07/96 (A) (B)(C) 300 300
Illinois State Toll Highway Authority Revenue Bond
7.380%, 01/07/96 (A) (B)(C) 2,000 2,040
Lisle, Illinois Housing Authority Revenue Bond for
Ashley of Lisle Project
5.050%, 01/07/96 (A) (B)(C) 1,400 1,400
-------
Total Illinois 5,140
-------
INDIANA - 10.5%
City of Mount Vernon, Indiana TECP
3.750%, 02/07/96 (C) 735 735
Sullivan, Indiana TECP
3.700%, 01/12/96 (C) 500 500
3.900%, 01/25/96 (C) 950 950
3.650%, 01/11/96 (C) 500 500
3.850%, 01/30/96 (C) 455 455
Gary, Indiana Environmental Improvement Revenue Bond
for U.S. Steel Project
4.250%,01/15/96 (A) (B)(C) 700 700
Jasper County, Indiana TECP
3.700%, 02/09/96 (C) 500 500
3.700%, 02/09/96 (C) 1,000 1,000
3.650%, 01/03/96 (C) 700 700
3.650%, 03/28/96 (C) 1,000 1,000
Sullivan, Indiana TECP
3.650%, 01/10/96 (C) 200 200
</TABLE>
2
<PAGE>
STATEMENT OF NET ASSETS CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Tax-Free Reserve (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Jasper County, Indiana TECP
3.550%, 03/28/96 (C) $ 400 $ 400
Sullivan, Indiana TECP
3.700%, 02/22/96 (C) 500 500
-------
Total Indiana 8,140
-------
KANSAS - 3.6%
City of Burlington, Kansas TECP
3.850%, 01/31/96 (C) 800 800
Kansas City, Kansas Industrial Development Revenue Bond for
PQ Corporation Project
6.000%, 01/07/96 (A)(B)(C) 100 100
City of Burlington, Kansas TECP
3.850%, 01/30/96 (C) 1,500 1,500
Wichita, Kansas Health Facilities Revenue Bond for Wichita
Health Systems Project, Ser XXV
5.300%, 01/07/96 (A)(B)(C) 400 400
-------
Total Kansas 2,800
-------
KENTUCKY - 3.9%
Pendelton, Kentucky TECP
3.900%, 01/12/96 (C) 3,000 3,000
-------
Louisiana - 1.2%
Parish of Saint Charles, Louisiana Pollution Control Revenue
Bond for Shell Oil Company Project, Ser B
5.950%, 01/03/96 (A)(B)(C) 300 100
Jefferson Parish, Louisiana Industrial Revenue Bond for
George J. Ackel, Sr. Project
5.200%, 01/07/96 (A)(B)(C) 1,000 800
-------
Total Louisiana 900
-------
MICHIGAN - 0.5%
Delta County, Michigan Environmental Improvement Revenue
Bond for Mead Escambia Paper Project, Ser C
5.900%, 01/03/96 (A)(B)(C) 400 400
-------
MINNESOTA - 1.2%
New Brighton, Minnesota Industrial Development Authority
Revenue Bond for Unicare Nursing Homes Project
5.200%, 01/07/96 (A)(B)(C) 800 800
</TABLE>
3
<PAGE>
STATEMENT OF NET ASSETS (continued) CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Tax-Free Reserve (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Saint Louis Park, Minnesota Industrial Development Authority
revenue Bond for Unicare Home Project
3.900%, 01/31/96 (A)(B)(C) $ 100 $ 100
-------
Total Minnesota 900
-------
MISSISSIPPI - 2.6%
Clairborne County, Mississippi TECP
3.450%, 02/15/96 (C) 2,000 2,000
-------
MONTANA - 4.9%
Forsyth, Montana Pollution Control Revenue Bond
4.900%, 01/07/96 (A)(B)(C) 1,500 1,500
Forsyth, Montana Pollution Control Revenue Bond for Portland
General Electric Project, Ser C
4.900%, 01/07/96 (A)(B)(C) 1,300 1,300
Forsyth, Montana Pollution Control Revenue Bond for Portland
General Electric Project
4.900%, 01/07/96 (A)(B)(C) 1,000 1,000
-------
Total Montana 3,800
-------
NEVADA - 2.9%
Nevada State Housing Authority Revenue Bond for Multi-Unit
Park Project, Ser A
5.500%, 01/07/96 (A)(B)(C) 2,200 2,200
-------
NEW HAMPSHIRE - 0.8%
New Hampshire State Industrial Development Revenue Bond for
Oerlikon-Burlhe Project
3.750%, 01/31/96 (A)(B)(C) 600 600
-------
NORTH CAROLINA - 3.4%
Wake County, North Carolina Industrial Development Authority
Revenue Bond for Carolina Power & Light Project
5.000%, 01/07/96 (A)(B)(C) 2,600 2,600
-------
OHIO - 2.1%
Evandale, Ohio Industrial Development Authority Revenue Bond
5.250%, 01/07/96 (A)(B)(C) 1,600 1,600
-------
OREGON - 0.1%
Port of St. Helens, Portland, Oregon Pollution Control
Revenue Bond
5.950%, 01/31/96 (A)(B)(C) $ 100 $ 100
-------
</TABLE>
4
<PAGE>
STATEMENT OF NET ASSETS CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Tax-Free Reserve (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PENNSYLVANIA - 13.5%
Allegheny County, Pennsylvania Hospital Development Revenue
Bond for Presbyterian University Hospital Project, Ser B3
5.000%, 01/07/96 (A)(B)(C) $ 700 $ 700
Beaver County, Pennsylvania TECP
3.750%, 01/24/96 (C) 2,200 2,200
Beaver County, Pennsylvania Industrial Development Authority
Revenue Bond for Duquesne Light Company Project, Ser B
4.950%, 01/07/96 (A)(B)(C) 100 100
Beaver County, Pennsylvania Industrial Development Authority
Revenue Bond for Duquesne Light Company Project, Ser A
4.950%, 01/07/96 (A)(B)(C) 1,000 1,000
Delaware County, Pennsylvania Industrial Development Authority
Revenue Bond for Scott Paper Company Project, Ser A
5.500%, 01/07/96 (A)(B)(C) 1,100 1,100
Montgomery County, Pennsylvania TECP
3.350%,02/01/96 (C) 300 300
Emmaus, Pennsylvania General Authority Revenue Bond, Ser B9
5.550%, 01/07/96 (A)(B)(C) 1,000 1,000
Lehigh County, Pennsylvania Industrial Development Authority
Revenue Bond for Allegheny Electric Project, Ser A
5.250%, 01/07/96 (A)(B)(C) 500 500
Washington County, Pennsylvania Industrial Development
Authority Revenue Bond for Werrerau Finance Company Project
5.250%, 01/07/96 (A)(B)(C) 1,000 1,000
Washington County, Pennsylvania Lease Revenue Bond
5.350%, 01/07/96 (A)(B)(C) 2,500 2,500
-------
Total Pennsylvania 10,400
-------
RHODE ISLAND - 3.9%
Rhode Island State TAN
4.500%, 06/28/96 (C) 3,000 3,013
-------
TENNESSE - 2.7%
Metropolitan Government Nashville & Davidson County,
Tennessee Water & Sewer Revenue Bond, Ser B
8.630%, 01/03/96 (A)(B)(C) 2,000 2,040
-------
TEXAS - 1.7%
City of Brownsville, Texas TECP
3.650%, 03/08/96 (C) 500 500
Nueces County, Texas Health Facilities Authority Revenue Bond
for Driscoll Children's Foundation Project
5.200%, 01/07/96 (A)(B)(C) 600 600
</TABLE>
5
<PAGE>
STATEMENT OF NET ASSETS (continued) CoreFund Money Market Funds
- --------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Par Value
Fiduciary Tax-Free Reserve (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Grapevine, Texas Industrial Development Authority Revenue
Bond, Ser B1
6.000%, 01/07/96 (A)(B)(C) $ 100 $ 100
Grapevine, Texas Industrial Development Authority Revenue
Bond for American Airlines Project, Ser B3
6.000%, 01/07/96 (A)(B)(C) 100 100
-------
Total Texas 1,300
-------
VERMONT - 1.8%
Vermont State Student Loan Revenue Bond, Student Loan
Assistance Corporation Project
3.750%, 01/31/96 (A)(B)(C) 1,400 1,400
-------
VIRGINIA - 0.5%
Virginia State Peninsula Port Authority Revenue Bond for
Dominion Terminal Project, Ser 1987C
5.900%, 01/03/96 (A)(B)(C) 350 350
-------
WEST VIRGINIA - 1.7%
Putnam County, West Virginia Industrial Development Authority
Revenue Bond for FMC Corporation Project
3.750%, 01/31/96 (A)(B)(C) 1,300 1,300
-------
WYOMING - 3.9%
Gillette County, Wyoming TECP
3.550%, 02/13/96 (C) 3,000 3,000
-------
TOTAL MUNICIPAL BONDS
(Cost $76,288,420) 76,288
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.2%
(Cost $76,288,420) 76,288
- ---------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.8% 593
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $76,288
NET ASSETS:
Portfolio Shares ($0.001 par value - 250 million authorized) based on
76,584,160 outstanding shares 76,906
Accumulated Net Realized Loss on Investments (25)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $76,881
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE & REDEMPTION PRICE PER SHARE $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
TAN -- Tax Anticipation Note TECP -- Tax Exempt Commercial Paper
(A) Variable rate securities - the rate reflected on the Statement of Net Assets is the rate in effect on December 31, 1996.
(B) Put or Demand features exist requiring the issuer to repurchase the instrument prior to maturity. The maturity date shown is
the lessor of the put, demand or maturity date.
(C) Securities are held in connection with a letter of credit issued by a major commercial bank.
</FN>
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
STATEMENT OF OPERATIONS (000) CoreFund Money Market Funds
- --------------------------------------------------------------------------------
For the six month period ended December 31, 1995
(Unaudited)
Fiduciary Tax-Free Reserve
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $1,478
------
EXPENSES:
Investment advisory fees 197
Waiver of investment advisory fees (197)
Administrative fees 98
Waiver of administrative fees (55)
Registration & filing fees 5
Professional fees 6
Pricing fees 1
Trustee fees 3
Insurance fees 3
Miscellaneous 8
-------
Total expenses 69
-------
NET INVESTMENT INCOME 1,409
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,409
======
See accompanying notes to financial statements.
7
<PAGE>
Statement of Changes in Net Assets (000) CoreFund Money Market Funds
- --------------------------------------------------------------------------------
For the six month period ended December 31, 1995
(Unaudited) and the year ended June 30, 1995
<TABLE>
<CAPTION>
Fiduciary Tax-Free Reserve
- ---------------------------------------------------------------------------------------------------------------------------
07/01/95 07/01/94
TO 12/31/95 TO 06/31/95
----------- -----------
<S> <C> <C>
Operations
Net investment income $ 1,409 $ 2,856
Net realized loss on securities sold 0 (7)
-------- --------
Net increase in net assets resulting
from operations 1,409 2,849
-------- --------
DIVIDENDS DISTRIBUTED FROM:
Net investment income (1,409) (2,856)
Net realized gains 0 (3)
-------- --------
Total dividends distributed (1,409) (2,859)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 98,700 213,817
Cost of shares redeemed (94,412) (219,433)
-------- --------
(Decrease) increase in net assets derived from
capital share transactions 4,288 (5,616)
-------- ---------
NET (DECREASE) INCREASE IN NET ASSETS: 4,288 (5,626)
NET ASSETS:
Beginning of period 72,593 78,219
-------- --------
End of period $ 76,881 $ 72,593
======== --------
SHARES ISSUED AND REDEEMED:
Shares issued 98,700 213,817
Shares redeemed
-------- --------
(Decrease) increase in net shares derived from
capital share transactions 4,288 (5,616)
-------- --------
OUTSTANDING SHARES:
Beginning of period 72,618 78,234
-------- --------
End of period 76,906 72,618
======== ========
See accompanying notes to financial statements.
</TABLE>
8
<PAGE>
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Fiduciary Tax-Free Reserve
- ---------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
Ratio of Ratio of
Net Net Net Ratio Ratio Expenses Net Income
Asset Distributions Asset Assets of of Net to Average to Average
Value Net from Net Value End 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 0.02 (0.02) $1.00 1.82%* $76,881 0.18% 3.58% 0.82% 2.94%
For the year ended
June 30, 1995 $1.00 0.03 (0.03) $1.00 3.41% $72,593 0.19% 3.37% 0.83% 2.73%
For the year ended
June 30, 1994 $1.00 0.02 (0.02) $1.00 2.32% $78,219 0.17% 2.29% 0.82% 1.64%
For the year ended
June 30, 1993 $1.00 0.02 (0.02) $1.00 2.48 $48,424 0.19% 2.45% 0.83% 1.81%
For the period ended
June 30, 1992 (1) $1.00 0.02 (0.02) $1.00 1.50%* $66,158 0.17% 3.00% 0.89% 2.28%
<FN>
- -------------------------
* Return is for the period indicated and has not been annualized.
** Rates for the six month period ended December 31, 1995 have been annualized.
(1) The Fiduciary Tax-Free Reserve commenced operations on November 19, 1991.
Ratios for this period have been annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS CoreFund Money Market Funds
- -------------------------------------------------------------------------------
December 31, 1995 (Unaudited)
1. ORGANIZATION
The CoreFund Fiduciary Tax-Free 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
Tax-Free 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 Tax-Free Reserve.
Security Valuation -- Investment securities of the Fiduciary Tax-Free 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.
10
<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 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
Tax-Free Reserve Portfolio. For the year ended December 31, 1995, CoreStates
Advisers earned $196,520 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 Tax-Free Reserve Portfolio. Such a fee is
computed daily and paid monthly. For the year ended December 31, 1995,
administrative fees totaled $98,260 of which $55,029 was voluntarily waived in
order to assist the Portfolio in maintaining a competitive expense ratio.
11
<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 Porfolio. 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.
5. INVESTMENT COMPOSITION
The Portfolio invests in securities which include revenue and general obligation
instruments.
At June 30,1995, the revenue sources by purpose were as follows:
% of Portfolio
Investments
--------------
REVENUE INSTRUMENTS
Education Bonds 5%
Hospital & Health Care Bonds 7%
Housing Bonds 9%
Industrial Bonds 16%
Other Bonds 1%
Pollution Control Bonds 12%
Transportation Bonds 3%
Utility Bonds 5%
TAX EXEMPT COMMERCIAL PAPER 37%
GENERAL OBLIGATIONS 1%
TAX ANTICIPATION NOTES 4%
----
100%
----
In addition, certain investments are covered by insurance issued by several
private issuers who guarantee the payment of interest and principal at final
maturity in the event of default. Such insurance, however does not guarantee the
market value of the securities or the value of the Portfolio's shares.
12
<PAGE>
Notes
13
<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.
