COREFUND
Family of Mutual Funds
1995
Semi-Annual Report
to Our
Shareholders
December 31, 1995
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[SEE DESCRIPTION IN APPENDIX A}
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[GRAPHIC 2]
[SEE DESCRIPTION IN APPENDIX A}
/ / TABLE OF CONTENTS
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Message to Our Shareholders............................. 1
CSIA Management Profile................................. 2
Fund Descriptions....................................... 2
Investment Advisers' Review............................. 4
Understanding Performance & Terms....................... 7
Managers' Discussion of Fund Performance................10
Financial Statements....................................26
COREFUND
Family of Mutual Funds
At the center of your investment needs.
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Message to Our Shareholders / / CoreFund
Unprecedented achievement. It was an exceptional year in 1995 for the stock
market, culminating with the breaking of the 5,000-point barrier by the Dow
Jones Industrial Average. This was a remarkable achievement that prompted new
confidence among investors. The surge was led by growth stocks, with value
stocks also performing well.
It was also a good year for bonds and money markets, which bounced back
once it became clear inflation was still under control. Overall, strong trends
in all markets led to an unprecedented show of confidence in mutual funds by
U.S. investors, who closed the year by pouring nearly record amounts into stock
funds, particularly growth and income stock funds.
[GRAPHIC 3]
[SEE APPENDIX A FOR DESCRIPTION]
Unprecedented opportunity. As the reports that begin on page 10
demonstrate, the CoreFund Family of Mutual Funds benefited from these favorable
market conditions and generated attractive returns for our shareholders. As we
begin the new year, we are excited about several new initiatives we are
undertaking, which promise to further expand the array of investment options we
can extend to new and existing shareholders. We also continue to develop new
ways to improve our service to customers. Overall, there are many reasons to be
optimistic about the outlook for 1996 -- both as it relates to the complete
investment climate, and for CoreFunds shareholders in particular.
Continued cause for caution. At the same time, there are signs that speak
to a continued need for prudence when fashioning investment strategies. The
primary cause of concern is continued uncertainty about the action -- or lack of
action -- to be taken in Washington regarding the Federal deficit. Investors
will also be keeping a wary eye on inflation and potential interest-rate adjust-
ments by the Federal Reserve Board. Clearly, we must remain ever-vigilant to the
possibility that political and/or economic forces could quickly reverse the
favorable trends we have enjoyed in recent months.
More than ever, therefore, we remind all investors to stay focused on the
long term, and to take steps to diversify their portfolios properly, in
accordance with their individual investment goals and risk/reward preferences.
All of us in the CoreFund family are renewing our determination to ensure
satisfactory investment experiences for each of our valued shareholders -- no
matter what the future may bring in the way of "unprecedented" change.
Emil J. Mikity
Chairman
1
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December 31, 1995
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More about the investment
adviser of the CoreFunds.
CoreFund, Inc. is a family of 17 mutual funds* managed by CoreStates
Investment Advisers, Inc. (CSIA), an affiliate of CoreStates Financial Corp.
CoreStates is one of the nation's largest and most respected banking
institutions, with a commitment to exceptional service dating back nearly two
centuries. As the investment adviser to CoreFund, CSIA is dedicated to
providing professional investment management to CoreFund investors.
For years, CSIA has served the financial needs of institutions,
corporations, municipalities, and individual investors. And today, it manages
more than $10 billion in assets, including approximately $2 billion in the
CoreFund Family of Mutual Funds.
A full range of quality funds, professional management, clear
communication, and convenience are all part of the reason why CoreFund can be at
the center of all your investment needs.
[LOGO]
CoreStates
Investment Advisers
The right choices for a
well-rounded investment program.
The CoreFund family offers a diverse range of high-quality mutual fund
investment options designed to help you reach your financial goals. These
include: the capital appreciation potential of equity funds; the income
potential of fixed-income funds; the stability of money market funds; and the
expanded reach and potential of international funds. By allowing free exchange
among all funds, CoreFund makes it easy for you to adapt your individual
investment program to your changing needs.
Equity (Stock) Funds
The primary objective of equity funds is long-term growth through
investments in stocks. Historically, the stock market has provided significantly
higher returns than the other major categories of investment, such as fixed
income and money market instruments. Yet, because equity funds invest in stocks
whose share prices can rise or fall, shares in an equity fund "when sold" may be
worth more or less than their original cost.
Growth Equity Fund seeks to provide capital appreciation and an increasing
flow of dividends by investing in common stocks and other equity securities
whose earnings are expected to grow faster than the economy and, therefore, the
market as a whole.
Value Equity Fund seeks maximum total return from a combination of capital
appreciation and investment income, by investing in stocks considered
undervalued in the marketplace at the time of purchase.
Equity Index Fund seeks to track the price and yield performance of the
Standard & Poor's 500 Composite Stock Price Index.
International Growth Fund seeks to provide long-term capital appreciation
by investing in growth-oriented stocks of companies located outside the United
States.
Balanced Fund seeks to provide long-term growth and current income while
controlling investment risk by investing in a blend of stock, bond and money
market securities.
2 Fund Descriptions & Objectives
*Includes three Fiduciary Funds which are presented in separate reports.
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Fixed Income (Bond) Funds
Bond funds are geared primarily toward providing a high level of current
income. Bond prices rise as interest rates fall. And, conversely, as interest
rates rise, bond prices fall, which causes the value of bond funds to fluctuate.
Thus, investors' principal will go up and down in price, and shares when
redeemed may be worth more or less than their original cost.
Government Income Fund seeks to provide high current income while
preserving capital by investing exclusively in U.S. Government and Agency
securities.
Intermediate Bond Fund seeks to provide a moderate level of current income
while conserving capital, by investing in a diversified portfolio of
intermediate-term, fixed-income obligations.
Intermediate Municipal Bond Fund seeks to preserve capital and provide a
high level of income that is substantially free of federal income taxes by
investing in a diversified mix of state and municipal obligations.
Global Bond Fund seeks to provide capital appreciation and current income
through investment primarily in fixed income securities of United States and
foreign issuers denominated in United States dollars and in other currencies.
Pennsylvania Municipal Bond Fund seeks to provide a high rate of current
income that is exempt from both federal income taxes and (for Pennsylvania
residents) Pennsylvania state income taxes. The Fund invests primarily in highly
rated, long-term municipal bonds issued by state, county, and local agencies
within the Commonwealth of Pennsylvania.
New Jersey Municipal Bond Fund seeks to provide a high rate of current
income that is exempt from both federal income taxes and (for New Jersey
residents) New Jersey state income taxes. The Fund invests primarily in highly
rated, long-term municipal bonds issued by state, county, and local agencies
within the state of New Jersey.
Money Market Funds
All money market funds invest in short-term securities, which have
remaining maturities of 13 months or less. Every money market fund is managed to
maintain a stable price per share of one dollar, though there is no guarantee
that it will be able to do so.
Cash Reserve seeks to provide current income consistent with liquidity and
stability of principal by investing in investment-grade money market securities.
Treasury Reserve seeks to provide current interest income and safety of
principal by investing in short-term, direct obligations of the U.S. Treasury or
in instruments backed by Treasury securities.
Tax-Free Reserve seeks to provide current income that is substantially free
of federal income taxes by investing in short-term securities of state and local
governments.
Fund Descriptions & Objectives 3
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December 31, 1995
CoreStates Investment Advisers' Review
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CoreFund
Investment
Review Financial markets experienced an extraordinary year in 1995. Following
1994's downbeat results -- when interest rates rose sharply, leading to lower
bond prices and disappointing stock market returns -- investors enjoyed
virtually uninterrupted growth in asset values in 1995.
In 1995, the stock market, as measured by the Standard & Poor's 500 Index,
provided a 37.6% total return including dividends and
[GRAPHIC 4]
[SEE APPENDIX A FOR DESCRIPTION]
DIJA = Dow Jones Industrial Average S&P 500 = Standard and Poor's 500 Index
SBBI = Salomon Brothers Broad Bond Index JPMGB = JP Morgan Global Bond Index
EAFE = Morgan Stanley Capital International Europe, Australia and Far East
Index
price appreciation. For the last six months (the first half of CoreFund's fiscal
year), the S&P 500 provided investors with a 14.45% return, on top of the
over-20% return realized from January through June 30, 1995.
Meanwhile, the return on fixed-income investments, as measured by the
Salomon Brothers Broad Index, was 18.5%, with 6.3% of this return earned in the
past six months.
What made the big difference from 1994 to 1995? Basically, it was a case of
less equaling more: As the stock and bond markets became less concerned about
the prospects for higher interest rates and inflation, they adopted more
positive outlooks.
The fever didn't spread overseas, however -- international stocks continued
to lag behind the U.S. markets. But the long-range outlook points to the
international arena as the strongest source of growth for the remainder of the
decade.
Equity Review
It was the best year for stocks since 1958, when the S&P provided a total
return of 43.1%. The market responded vigorously as soon as it became clear that
the economy in 1995 would grow slowly enough to keep inflation below 3%, yet
strongly enough to prevent erosion of corporate profits. Lower interest rates
and strong growth of corporate profits (S&P 500 earnings rose by about 18%)
combined to keep price/earnings ratios (the stock price divided by earnings per
share) at levels that generated genuine, and sustained, enthusiasm on Wall
Street, for just about every industry sector. (Specific commentary on the
performance of CoreFund's equity portfolios follows this market overview.)
Bond and Money Market Review
As 1995 began, expectations in these financial markets were bleak. The bond
and money markets had suffered through a difficult 1994, when interest rates
soared steadily in the wake of several moves by the Federal Reserve to
4 CoreStates Investment Advisers' Review
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tighten the money supply, slow the economy and dampen inflation pressures.
Long-term (30-year) Treasury bond rates exceeded 8% in 1994, and the overnight
Federal funds rate reached 6%.
[GRAPHIC 5]
[SEE APPENDIX A FOR DESCRIPTION]
Mark E. Stalnecker
Chairman and Chief Investment Officer
CoreStates Investment Advisers, Inc.
But 1995 saw diminished economic growth, and lower-than-expected inflation.
These trends, in turn, lowered the markets' concerns about inflation.
Congressional efforts to enact fiscal reforms and slow government spending also
fueled a bullish outlook.
As a result, long-term rates declined, and in July, the Federal Reserve
began lowering the Federal Funds rate. By year-end, the yield on long-term
Treasury bonds fell below 6%, and the Federal funds rate was 5.5%.
International Market Review
In contrast to the outsized returns earned by investors in U.S. stocks and
bonds in 1995, the returns to U.S. dollar-based investors from international
equities were significantly lower. The Morgan Stanley Capital EAFE (Europe,
Australia and Far East) Index produced a total return of 11.17% in 1995, with
most of this generated in the last six months.
[GRAPHIC 6]
[SEE APPENDIX A FOR DESCRIPTION]
S&P 500 = Standard & Poor's 500 Index EAFE = Morgan Stanley Capital
International Europe, Australia and Far East Index
International stocks have lagged well behind the U.S. stock market over the
past five years, with annualized returns of 9.4%, versus 16.6% for the S&P 500.
We expect this trend to
(continued)
CoreStates Investment Advisers' Review 5
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December 31, 1995
CoreStates Investment Advisers' Review (continued) / / CoreFund
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reverse, however -- look for returns on international equities over the
remainder of the decade to exceed those from U.S. equity investments.
Outlook for 1996
Unfortunately, it is unlikely that 1996 will generate investor smiles as
large as we saw in 1995. Forecasts for the market can be unreliable, but we
expect total returns for stocks and bonds to be in the 7% to 10% range this
year. This would mean further reductions in interest rates and about a 5.8% rise
in stock prices, with dividend income adding slightly more than another 2% to
stock returns.
However, given the strong performance of 1995, we expect that 1996 will
bring bouts of selling pressure in both stock and bond markets. This will be
especially true if actions to discipline Federal government spending don't prove
to be as forceful as the market expected during 1995.
[GRAPHIC 7]
[SEE APPENDIX A FOR DESCRIPTION]
Whatever 1996 holds in store, over the rest of this decade we anticipate
average annual returns of 7% to 8% for long-term bonds, and 10% to 11% for the
S&P 500 Index. There will be more volatility, however. As always, successful
investing requires adherence to a long-term plan -- not reliance on short-term
market timing.
In conclusion, 1995 was a year for the record books for U.S. stock and bond
market investors. We shouldn't expect a repeat for some time.
Mark E. Stalnecker
Chairman and Chief Investment Officer
CoreStates Investment Advisers, Inc.
6 CoreStates Investment Advisers' Review
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What You Need to Know / / CoreFund
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Understanding
Fund Reports
On the following pages, you will find reports for each fund in the CoreFund
Family of Mutual Funds.
The reports include discussion and analysis from each fund manager of an
individual fund's performance for the most recent six-month period. The
managers' commentaries provide insight into the investment strategies they are
employing, and look at the market forces that are expected to prevail during the
next six-month period.
For equity funds, the individual reports include listings of the top
holdings and the percentage of the total fund invested in these holdings. For
funds with fixed-income holdings, the reports include charts that show how those
holdings are divided according to maturity or quality ratings.
Accompanying each commentary is a box with Quick Fund Facts, which includes
information about when a fund was opened, the size of its portfolio, the number
of shares outstanding and, where applicable, the average weighted maturity of a
fund's fixed-income holdings.
Understanding Fund Performance
Also, a Performance box is provided for each fund. This box shows the
six-month cumulative total return, as of December 31, 1995, for each Series of
shares offered for each fund. The performance boxes for the equity portfolios
also compare how the Net Asset Value for each series changed over the six-month
period from July 1, 1995, to the end of the year. The NAV is listed both with
and without the CoreFund sales charge ("load"). Further, each performance box
compares the fund's performance to that of the benchmark(s) the fund manager
uses to gauge returns.
As you review the information in these fund reports, please remember that
past performance of the portfolios does not predict future results. Also,
investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
For the CoreFund Series B (individual) shares, the performance information
has been adjusted to reflect the .25% 12b-1 fee associated with these shares.
The Series B data has also been divided to show performance with and without the
assessment of the maximum sales charge of 3.25%.
Understanding Performance & Terms 7
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December 31, 1995
What You Need to Know (continued)
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Defining the Terms
Various terms used in the fund reports are defined as follows:
Series A/Series B CoreFund shares are currently available in two different
Series. Series A shares are for institutional investors and 401(k) plan
participants. Series B shares are for individuals, and have added features such
as checkwriting and automatic investment plans, as well as some additional fees.
Load refers to fees that may be associated with a particular fund. Where loads
are shown, both sales charges (incurred when purchasing shares) and 12b-1 fees
have been included. The 12b-1 fee, named after the Securities and Exchange
Commission rule that permits it, is sometimes assessed to recover costs incurred
through advertising, commission payments to brokers, or other expenses
associated with marketing and distributing a fund.
Total Return shows how the value of an investment has changed from the beginning
to the end of a period, assuming that dividends and capital gains have been
reinvested. In the performance boxes, the six-month total return is shown for
each fund on a cumulative basis -- i.e., the return for the period from July 1,
1995 to December 31, 1995.
Net Asset Value (NAV) reflects the market value of one share of the fund on the
date listed. This figure is determined by taking the fund's total assets --
securities, cash, and any accrued earnings -- then deducting liabilities and
dividing by the number of shares outstanding.
Money market funds seek to maintain a stable NAV of $1.00, although there
is no guarantee they will always do so. There are three money market portfolios
in the CoreFund Family of Mutual Funds: Cash Reserve, Treasury Reserve, and
Tax-Free Reserve.
Yield refers to the rate of return for an investment portfolio, expressed as a
percentage. Yield for mutual funds is established by a formula set by the
Securities and Exchange Commission. A fund's yield will fluctuate and reflects
the portfolio's net earning power after fund expenses have been paid.
8 Understanding Performance & Terms
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Maturity refers to the period over which a bond or other fixed-income security
must be held to earn the full yield offered by the issuer of the security.
Average weighted maturity (AWM) describes the average period of maturity in a
portfolio that contains fixed-income securities of varying maturities.
Distributions are the payments of income and capital gains to shareholders of a
mutual fund. For tax purposes, capital gains distributions are calculated
separately from interest income or dividends.
Index is a statistical composite of selected stocks or bonds that is used to
measure price fluctuations in these markets. For example, Standard & Poor's 500
Index ("the S&P 500") is a popular measurement of the stock market's performance
based on prices of 500 common stocks listed on the New York and American stock
exchanges or traded over the counter.
Face Value is the amount the bondholder receives when the bonds are redeemed at
maturity. Interest payments are based on the face value (also called "par
value").
Volatility is a description of how much the price of securities, such as mutual
funds, moves up or down within a given period.
Dollar-cost Averaging is an installment-purchase technique that involves
investing a fixed amount of money in mutual fund shares at regular intervals
rather than all at once. The objective is to buy fewer shares when prices are
high and more shares when they are low.
Understanding Performance & Terms 9
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December 31, 1995
Managers' Discussion of Fund Performance
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Growth Equity Fund
The CoreFund Growth Equity Fund, Series A, returned 14.14% for the
six-month period ending December 31, 1995, significantly outperforming its
benchmark index, the Frank Russell 1000 Growth Index, which was up 14.05% for
the same period.
The Growth Equity Fund's strong performance was achieved by maintaining a
fully invested posture during the year, keeping cash levels to a minimum. Also,
the Fund was overweighted in technology and financial stocks -- two of 1995's
best-performing sectors. Further, we benefited from underweighting retail stocks
through most of the year.
More than anything, the principal driver of fund performance in 1995 was
good stock selection. Our staff of securities analysts provided the Fund manager
with many excellent investment ideas in 1995. Examples of high-performing issues
owned by the Fund included: Glenayre Technologies, up 163% in 1995; Cisco
Systems, up 112%; US Robotics, up 105%; Amgen, up 84%; Bank of New York, up 60%;
Federal National Mortgage Assn., up 60%; Pepsico, up 54%; and CUC International,
up 30%.
In 1996, we plan to stick to the disciplines that served us so well in
1995. We continue to look for high-quality, large-capitalization growth stocks.
We will own these stocks when they are undervalued and when their issuing
companies show strong business and earnings momentum.
When compared with other growth mutual fund managers in the United States,
we believe our 1995 performance is quite competitive with the acknowledged
leaders in the industry.
Quick Fund Facts -- Growth Equity
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Inception Date: February 3, 1992 (Series A)
Portfolio Size: $104.58 million
Shares Outstanding: 8,456,878 (A&B combined)
Top Five Holdings (as of December 31, 1995)
--------------------------------------------
% of fund investments
---------------------
SmithKline Beecham ADR 2.6%
Amgen 2.4%
Paychex 2.4%
General Electric 2.3%
Mirage Resorts 2.3%
Performance (as of December 31, 1995)
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NAV
6-Month ------------------
Total Return 7/1/95 12/31/95
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(Cumulative)
Series A 14.14% $11.18 $12.37
Series B without Load 13.93 11.17 12.35
Series B with Load 8.77 11.70 12.76
S&P/Barra Growth Index 13.98 -- --
Russell 1000 Growth Index 14.05 -- --
10 Management's Discussion & Analysis
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Value Equity Fund
The Value Equity Fund, Series A, returned 5.02% for the six months ended
December 31, 1995, compared to 14.45% for the Standard & Poor's 500 Index.
The Fund's relative results were impeded by its lack of exposure to
technology-related issues, and its overweighting in capital goods and
intermediate materials. Earlier in 1995, we eliminated our technology positions,
on the basis of valuation and positive price persistence. Capital goods issues
have generally underperformed in this era of tight money supply, and
Caterpillar's pre-announcement that its third-quarter results would be somewhat
below expectations caused the entire sector to swoon. Nonetheless, the majority
of the capital goods companies in our portfolio have met or exceeded earnings
expectations, and valuations are still attractive.
Additionally, while the portfolio was slightly overweighted in the interest
rate-sensitive
[GRAPHIC 8]
[See Appendix A for Description]
sectors that performed so well in 1995's declining-rate
environment, a more significant holding in these sectors would have contributed
significantly to results.
Banks, brokerages and insurance issues all provided strength during the
last half of the
Quick Fund Facts -- Value Equity
-------------------------------
Inception Date: February 6, 1990 (Series A)
Portfolio Size: $33.78 million
Shares Outstanding: 2,616,671 (A&B combined)
Top Five Holdings (as of December 31, 1995)
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% of fund investments
---------------------
Elan 5.1%
Hasbro 4.7%
Progressive 4.4%
Rockwell International 4.0%
Columbia HCA Healthcare 3.8%
Performance (as of December 31, 1995)
-------------------------------------
NAV
6-Month --------------------
Total Return 7/1/95 12/31/95
------------ --------------------
(Cumulative)
Series A 5.02% $14.27 $12.91
Series B without Load 4.80 14.29 12.92
Series B with Load 0.10 14.96 13.35
S&P 500 Composite Index 14.45 -- --
year, with the energy sector also kicking in during the fourth quarter.
Of the interest rate-sensitive issues, Merrill Lynch, Charles Schwab & Co. and
Franklin Resources (Templeton Mutual Funds) provided significantly higher
performance. In energy, Anadarko Petroleum, a natural gas producer, also showed
beneficial results.
Within the portfolio, many issues should benefit from the recent upturn in
the commercial aerospace cycle. These include Boeing, Allied Signal, Rockwell
International, and Sunstrand Corp. In communications, newspaper issues appear to
be especially attractive.
(continued)
Management's Discussion & Analysis 11
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December 31, 1995
Managers' Discussion of Fund Performance (continued)
Value Equity Fund (continued)
These stocks have underperformed for years under the weight of rising
raw material prices, which now appear to be poised for a significant decline. In
this sector, we prefer both Gannett and Knight-Ridder Newspapers.
Certainly, 1996 will be a tougher year for the stock market. The underlying
fundamentals of low inflation, low interest rates, and modest economic growth
should keep the market out of significant trouble. At the same time, however, a
slowing in corporate profits, combined with Presidential politics, Congressional
wrangling, and a possible -- but natural -- backup in interest rates, will serve
to cap the market's upside potential.
Equity Index Fund
Well-diversified across the large, familiar names of the S&P 500, the
CoreFund Equity Index Fund returned 14.27% for the six-month period ended
December 31, 1995. This compared with a 14.45% return for the Standard & Poor's
500 during the same period.
For the quarter ended December 29, 1995, the Equity Index Fund returned
6.17% after expenses, compared with 6.01% for the S&P 500 Index.
To maximize efficiencies, the Fund has historically owned significantly
fewer than 500 companies. When the Fund was small, this strategy played an
important role in minimizing the impact of transaction costs. To focus more on
tracking error, the number of issues was greatly expanded in 1995, through a
major, one-time rebalancing.
The Fund also enjoyed considerable growth in assets during 1995. Holdings
totaled $137 million at the end of December, up 68% from the $78 million in the
Fund at the end of 1994.
With this significant growth in assets came the added challenge of timely
reinvestment. Any cash position held during the market's strength represented
a meaningful drag on relative performance. This was particularly true during the
first half of 1995. The factor was minimized in the second half by lowering the
maximum cash level held in the Fund.
Looking to 1996, the Equity Index Fund remains an attractive alternative
for investors who want to capture the expected favorable long-term return of the
equity market, without the risks often associated with any particular investment
management style.
12 Management's Discussion & Analysis
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Quick Fund Facts -- Equity Index
-------------------------------
Inception Date: February 14, 1985
Portfolio Size: $137.35 million
Shares Outstanding: 5,259,006
Top Five Holdings (as of December 31, 1995)
-------------------------------------------
% of fund investments
---------------------
General Electric 2.6%
AT&T 2.3%
Exxon 2.1%
Coca Cola 2.0%
Merck & Co. 1.7%
Performance (as of December 31, 1995)
-------------------------------------
NAV
6-Month -------------------
Total Return 7/1/95 12/31/95
------------ -------------------
(Cumulative)
Series A 14.27% $23.79 $26.12
S&P 500 Composite Index 14.45
International Growth Fund
The CoreFund International Growth Fund, Series A, had a total return
(income and reinvested capital gains) of 8.69% for the six-month period ended
December 31, 1995. This compared to a 8.36% return by the Fund's benchmark
index, the Morgan Stanley EAFE Index.
The most important influence on the Fund during the last half of 1995 was
the loosening of Japanese monetary policy. This came in response to the
deflationary pressures that have been stifling the country's economic activity,
as well as to the serious problems of Japan's banking system. After the change,
the Yen gave up all the strength it had displayed in the first half of the year,
moving from a rate of Y84/US$ in July to Y103/US$ at the end of December. This
in turn removed some of the pressure on domestic pricing and on export margins.
The Japanese stock market, having fallen sharply in the first six months of
1995, recovered sharply in the second half. By December 31, it was 37% above its
July low. Still, as a measure of its earlier fall, it should be noted that the
market rose only 1% for the whole of 1995.
The second-half gains were moderated for U.S. investors by the weakness of
the Japanese currency. But for most of the second half, the Fund's Japanese
assets have been hedged through a forward sale of Yen for dollars. Elsewhere in
Asia, there have been good returns from the Fund's positions in Hong Kong and
Singapore -- two markets that benefited from the easing of U.S. interest policy.
Australia was also strong, but the smaller markets in the region (Malaysia,
Thailand, South Korea, Taiwan and India) all fell.
(continued)
Management's Discussion & Analysis 13
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December 31, 1995
Managers' Discussion of Fund Performance (continued)
International Growth Fund (continued)
In Europe, equity markets have been supported by rising bond markets, with
Switzerland, The Netherlands and Great Britain (where the Fund has its largest
holdings in the region) showing the strongest gains. In Britain, the market was
energized by heavy takeover activity, which focused attention on the disparities
between the valuation standards used by investors and those used by corporate
buyers. In Germany, the Bundesbank lowered interest rates against a backdrop of
reduced expectations for economic growth and continuing low inflation.
[GRAPHIC 9]
[See Appendix A for Description]
The slowdown in the German economy put pressure on corporate margins
throughout Europe, raising the risk of earnings declines in 1996. Equity markets
in Europe will have the additional problem of finding buyers for the large
number of government privatizations -- particularly in the telephone utility
sector -- that are scheduled for the coming year. In many European countries,
there are no natural buyers for these issues.
Quick Fund Facts -- International Growth
----------------------------------------
Inception Date: February 12, 1990 (Series A)
Portfolio Size: $113.90 million
Shares Outstanding: 8,751,893 (A&B combined)
Top Five Holdings (as of December 31, 1995)
------------------------------------------
% of fund investments
---------------------
HSBC Holdings 2.0%
Mitsubishi 1.6%
Rohm 1.6%
Elsevier NV 1.5%
Singapore Press 1.5%
Performance (as of December 31, 1995)
-------------------------------------
NAV
6-Month ---------------------
Total Return 7/1/95 12/31/95
------------ ----------------------
(Cumulative)
Series A 8.69% $12.29 $13.01
Series B without Load 8.61 12.27 13.01
Series B with Load 3.71 12.85 13.45
MSCI EAFE Index 8.36 -- --
Latin American markets were once again very volatile in the last half of
1995, reflecting sharp movements in the Mexican Peso and local political
problems in Argentina and Brazil. Most international investors abandoned these
markets following the Peso crisis at the end of 1994. In recent months, however,
investors have been growing more confident that governments in the region are
renewing their commitments to economic reform.
14 Management's Discussion & Analysis
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Balanced Fund
The CoreFund Balanced Fund, Series A, returned 12.66% for the six-month
period ended December 31, 1995. This compared with a 14.45% returned for the
Fund's equity benchmark, the Standard & Poor's 500 Index, and a 6.66% return for
its fixed income benchmark, the Lehman Brothers Intermediate
Government/Corporate Bond Index.
For Series B shares from which a sales charge has been deducted, the return
for the six-month period was 7.47%; for Series B shares without a load, the
return was 12.53%. The Balanced Fund grew in asset size during the period from
$63,436,000 on June 30, 1995 to $70,970,000 on December 31, 1995.
The equity holdings of the Balanced Fund outperformed a very strong S&P 500
Index during the period, returning 40.7%. Returns from the Fund's holdings in
the technology sector and from pharmaceutical and financial issues matched or
outperformed those sectors in the broader market.
Additionally, the Fund's positions in electrical equipment, selected
chemicals, and a variety of other industries benefited from repositioning,
restructuring and share-repurchasing programs enacted by the companies for which
specific issues were held. These gains offset weakness in the Fund's
underweighted holdings (relative to the broader market) in the energy sector.
On the bond side, the Fund's fixed-income performance nearly matched that
of the benchmark Lehman Brothers index (14.4% vs. the Bond Index's 15.4%) for
the 1995 calendar year. The Fund's bond holdings were over-
Quick Fund Facts -- Balanced
----------------------------
Inception Date: January 4, 1993 (Series A)
Portfolio Size: $70.97 million
Shares Outstanding: 5,845,047 (A&B combined)
Asset Allocation (as of December 31, 1995)
------------------------------------------
% of fund investments
---------------------
Ford Motor Company 1.4%
Amsouth Bank 1.4%
Coca Cola 1.4%
Hubbell class B 1.4%
Warner Lambert 1.3%
Performance (as of December 31, 1995)
-------------------------------------
NAV
6-Month --------------------
Total Return 7/1/95 12/31/95
------------ --------------------
(Cumulative)
Series A 12.66% $11.06 $12.14
Series B without Load 12.53 11.06 12.14
Series B with Load 7.47 11.58 12.55
S&P 500 Composite Index 14.45 -- --
Lehman Gov't/Corp Bond 6.66 -- --
weighted in the two-years-or-less portion of the yield curve through
mid-year; this market segment generated smaller returns than longer-dated
securities. Despite a moderate extension of average maturity during the second
half, our defensive posture, which served the Fund well last year, made it
difficult to fully exploit the rapid and sharp rally in bond prices during the
period.
Currently, cash levels in the Fund are fairly low, reflecting a fully
invested position in
(continued)
Management's Discussion & Analysis 15
<PAGE>
December 31, 1995
Managers' Discussion of Fund Performance (continued)
Balanced Fund (continued)
stocks and bonds. In 1996, we anticipate continued volatility in the capital
markets, with an upward bias. During periods of weakness, we plan to seek
opportunities to add high-coupon, high-quality bonds, while intensifying our
focus on attractively valued stocks of companies with visible earnings growth
and improving fundamentals.
[GRAPHIC 10]
[See Appendix A for Description]
Government Income Fund
The Government Income Fund produced strong absolute returns and was
competitive with its benchmark index during the period. Series A shares of the
Fund returned 6.02% for the six months ended December 31, 1995, compared with
6.32% for the benchmark Salomon Broad Index. Total assets of the Fund grew from
$12.7 million to $14.8 million during the period.
The Fund used market setbacks in August and mid-December to extend its
duration to 4.9 years and 5.3 years, respectively. This was achieved primarily
by selling off higher-coupon GNMAs (8.5%, 9.0%, and 9.5%), and replacing them
with longer-duration, lower-coupon GNMAs (6.0% and 6.5%). Eliminating these
premium mortgage securities reduced the Fund's exposure to prepayment risk,
which will remain high if rates stay at current levels or drop further.
The Fund also added some 30-year Treasury holdings in lieu of 10-year
Treasuries, and purchased 5-year Treasuries with new cash inflow. The Fund's
mortgage holdings were a slight drag on performance during the strong
fourth-quarter rally, when this sector lagged the price gains of the Treasury
market. The steeper curve that accompanied the Fed's easing of interest rates in
late December allowed some performance recovery in the mortgage sector.
Looking to 1996, we expect interest rates to be less volatile than in 1994
and 1995, but maintain a bullish bias. With weakening economic momentum and
monetary policy
16 Management's Discussion & Analysis
<PAGE>
/ / CoreFund
Quick Fund Facts -- Government Income
-------------------------------------
Inception Date: April 1, 1993 (Series A)
Portfolio Size: $14.77 million
Shares Outstanding: 1,462,827 (A&B combined)
Average Weighted Maturity: 9.4 years
[GRAPHIC 11]
[See Appendix A for Description]
Performance (as of December 31, 1995)
------------------------------------
6-Month Yield NAV
Total Return 30-day 12/31/95
------------ ------ --------
(Cumulative)
Series A 6.02% 5.86% $10.10
Series B without Load 5.78 -- 10.10
Series B with Load 1.06 5.42 10.44
Salomon Broad Bond Index 6.32 6.26 --
Lehman Aggregate Bond 6.31 6.01 --
still modestly tight, we expect further Fed easing in the first half of the
year, and a steepening of the yield curve. The Fund will maintain its
modestly longer duration and maturity structure, and will position itself
to take advantage of yield-curve steepening. With mortgage spreads near
historically attractive levels, the Fund will look to add to this sector
selectively.
Intermediate Bond Fund
The Intermediate Bond Fund, Series A, returned 4.33% for the six months
ended December 31, 1995. The Fund strongly outperformed its benchmark index, the
Merrill Lynch One- to Three-Year Treasury Index, which returned 4.04% for the
same period.
Total assets of the Intermediate Bond Fund grew from $57,089,000 to
$57,342,000 during the period.
The Fund outperformed its benchmark index primarily because of its longer
duration and maturity structure. Additionally, the Fund's large holdings
(approximately 23%) in AAA-rated asset-backed securities helped enhance the
portfolio's return, as a shortage of high-quality, short-maturity securities
caused yield spreads to tighten in that sector.
The Fund eliminated its holdings of GNMA 8.5% bonds, thus reducing its
exposure to prepayment risk, which will remain high if rates stay at current
levels or drop further. The Fund also began to reduce its holdings of 10-year
maturities in favor of five-year bonds, to position itself for further
steepening of the yield curve. The duration of the Fund was maintained at
roughly 2.5 years throughout the six-month period, slightly longer than the
benchmark index.
The period was marked by a strong rally for the bond market overall, as the
benchmark 30-year Treasury bond dropped 67 basis points in yield, finishing at
5.95%. The rally was fueled by optimism over the Federal budget outlook and a
softening in manufacturing activity and retail sales that pointed to an overall
slowing of economic momentum.
(continued)
Management's Discussion & Analysis 17
<PAGE>
December 31, 1995
Managers' Discussion of Fund Performance (continued)
Intermediate Bond Fund (continued)
The Federal Reserve Bank, citing a reduction in inflationary expectations,
reduced short-term interest rates by 25 basis points in early June and late
December, leaving the targeted Federal Funds rate at 5.50%.
Looking to 1996, we expect interest rates to be less volatile than in 1994
and 1995, but remain positive about the overall outlook. With weakening economic
momentum and monetary policy still modestly tight, we expect
[GRAPHIC 12]
[See Appendix A for Description]
further Fed easing in the first half of the year. Also, we look for further
steepening of the yield curve. The ongoing budget debate, and the presidential
election, will be a source of week-to-week volatility in the market, and could
pose a threat to our bullish outlook.
Our current plans, therefore, are to maintain the Fund's longer duration
and maturity structure. We will look to enhance the portfolio's yield if the
mortgage sector cheapens further.
Quick Fund Facts -- Intermediate Bond
-------------------------------------
Inception Date: February 3, 1992 (Series A)
Portfolio Size: $57.34 million
Shares Outstanding: 5,750,242 (A&B combined)
Average Weighted Maturity: 3.0 years
[GRAPHIC 13]
[See Appendix A for Description]
Performance (as of December 31, 1995)
------------------------------------
6-Month Yield NAV
Total Return 30-day 12/31/95
------------ ------ --------
(Cumulative)
Series A 4.33% 5.26% $ 9.97
Series B without Load 4.20 -- 9.97
Series B with Load (0.46) 4.85 10.30
Lehman Int Gov't/Corp Bond 5.21 5.50 --
Merrill Lynch 1-3Yr Treasury 4.04 5.22 --
18 Management's Discussion & Analysis
<PAGE>
/ / CoreFund
Intermediate Municipal Bond Fund
The CoreFund Intermediate Municipal Bond Fund, Series A, returned 4.71% for
the six-month period ended December 31, 1995, and 11.58% for the entire year.
The Fund's benchmark index, the Lehman Brothers 7-Year Municipal Bond Index,
returned 5.45% and 14.15% for the same periods. For Series B shares from which a
sales load has been deducted, the returns were (0.20)% and 6.22%. For Series B
shares without a sales load, the returns were 4.47% and 11.20%.
As of December 31, the average weighted maturity of the Fund was 6.1 years,
and the 30-day yield was 3.29% and 2.94% for A and B shares, respectively.
The CoreFund Intermediate Municipal Bond Fund underperformed its benchmark
index because it was positioned with a slightly shorter average maturity. Given
the current favorable outlook for the bond market, and the good relative value
of intermediate municipals, we intend to extend the portfolio's average weighted
maturity.
Additionally, we believe that quality spreads can widen, given possibly
weaker economic conditions. The Intermediate Municipal Bond Fund is
well-positioned for this development, with 92% of the fund rated A or better,
and 80% rated AA or better.
Fundamentally, we continue to like the prospects for the bond market, but
remain concerned with the lack of a budget agreement from Washington. During the
second half of 1995, the Federal Reserve eased monetary policy twice, lowering
its target for the Federal Funds rate by 25 basis points on both July 6th and
December 19th. While yields bounced around for part of the third quarter, they
Quick Fund Facts -- Intermediate Municipal
------------------------------------------
Inception Date: May 3, 1993
Portfolio Size: $1.27 million
Shares Outstanding: 125,464 (A&B combined)
Average Weighted Maturity: 6.1 years
[GRAPHIC 14]
[See Appendix A for Description]
Performance (as of December 31, 1995)
-------------------------------------
6-Month Yield NAV
Total Return 30-day 12/31/95
------------ ------ --------
(Cumulative)
Series A 4.71% 3.29% $10.11
Series B without Load 4.47 -- 10.10
Series B with Load (0.20) 2.94 10.44
Lehman 7-Yr Muni Bond 5.45 4.58 --
resumed their steady decline during the fourth quarter, with the bellwether
30-year Treasury bond finishing the year at 5.95%.
Following severe underperformance in the second quarter because of
tax-reform fears, municipal bonds participated in the second-half rally, with
yields declining across the curve. The steepest decline was on long-term
municipals, where yields fell 60 to 70 basis points on maturities from 16 years
and out. However, short and intermediate tax-exempt yields declined between only
30 to 45 basis points. With this lackluster performance, intermediate
tax-exempts are currently at or near their "cheapest" value, relative to U.S.
Treasuries.
Management's Discussion & Analysis 19
<PAGE>
December 31, 1995
Managers' Discussion of Fund Performance (continued)
Global Bond Fund
The Global Bond Fund, Series A, returned 6.96% for the six-month period
ended December 31, 1995. This compared to a return of 7.36% for the Fund's
benchmark index, the J.P. Morgan Global Bond Index U.S. Dollars, hedged.
The Global Bond Fund managers avoided the Japanese bond market during the
period, as it continued to look overvalued in relative terms and actually
started to lose ground toward the end of the year. While believing that the U.S.
Treasury market was fully valued and retained some residual value as the period
progressed, the managers preferred to maintain their exposure in the United
States through an over-the-counter option contract.
In the last months of the year, European markets were seen as offering the
best value, because European economies were less advanced in the business cycle
and offered the greatest potential for further interest-rate cuts.
[GRAPHIC 15]
[See Appendix A for Description]
Overall, global bonds performed well during the six-month period and, while
volatile, remained on an upward path. Fears
Quick Fund Facts -- Global Bond
-------------------------------
Inception Date: December 15, 1993
Portfolio Size: $33.41 million
Shares Outstanding: 3,374,225 (A&B combined)
Average Weighted Maturity: 13.7 years
[GRAPHIC 16]
[See Appendix A for Description]
Performance (as of December 31, 1995)
-------------------------------------
6-Month Yield NAV
Total Return 30-day 12/31/95
------------ ------ --------
(Cumulative)
Series A 6.96% 5.45% $ 9.90
Series B without Load 6.83 -- 9.89
Series B with Load 2.05 5.03 10.22
JPM Global Bond US$H 7.36 -- --
that economic growth -- and inflationary pressures -- would pick up by the
fourth quarter proved unfounded. Sluggish growth and few signs of inflation
eventually led to falling interest rates in the United States, the United
Kingdom and continental Europe. In Japan, efforts to stimulate growth led to an
easier monetary policy.
All of these factors combined to provide an ideal climate for bonds and
bring conviction back to the world's markets as the year ended. As 1996 unfolds,
further interest rate cuts can be looked for, particularly in Europe. The
European markets still seem to offer the greatest potential for the coming
six-month period.
20 Managment's Discussion & Analysis
<PAGE>
/ / CoreFund
PA Municipal Bond Fund
The CoreFund Pennsylvania Municipal Bond Fund, Series A, returned 7.22% for
the six-month period ended December 31, 1995, and 17.57% for the entire year.
The Fund outperformed its benchmark index, the Lehman Brothers Pennsylvania
Mutual Fund Index, which returned 6.59% and 16.83% for the same periods,
respectively.
For Series B shares from which a sales load has been deducted, the returns
were 2.25% and 11.87%, respectively. For Series B shares without a sales load,
returns were 7.08% and 17.16%.
The Fund, with 56% invested in maturities of 16 years or longer, was well
positioned to take full advantage of the municipal bond market's second-half
rally, which saw yields decline across the curve, particularly for long-term
municipals. Because long Treasury yields also declined significantly, long-term
municipal bonds still remain a good relative value versus taxable securities.
Given this good relative value and a positive fundamental outlook for the
bond market, we intend to maintain our current weighted average maturity in the
Fund. Additionally, we believe that quality spreads can widen, given weaker
economic conditions.
The Fund is well positioned for this, with 100% of the securities rated A
or better and 91% rated AA or better.
Quick Fund Facts -- PA Municipal Bond
-------------------------------------
Inception Date: May 16, 1994
Portfolio Size: $3.09 million
Shares Outstanding: 291,090 (A&B combined)
Average Weighted Maturity: 15.7 years
[GRAPHIC 17]
[See Appendix A for Description]
Performance (as of December 31, 1995)
-------------------------------------
6-Month Yield NAV
Total Return 30-day 12/31/95
------------ ------ --------
(Cumulative)
Series A 7.22% 5.07% $10.61
Series B without Load 7.08 -- 10.61
Series B with Load 2.25 4.65 10.97
Lehman Mutual Fund PA 6.59 5.05 --
Management's Discussion & Analysis 21
<PAGE>
December 31, 1995
Managers' Discussion of Fund Performance (continued)
NJ Municipal Bond Fund
The CoreFund New Jersey Municipal Bond Fund, Series A, returned 7.02% for
the six-month period ended December 31, 1995, and 16.75% for the entire year.
The Fund outperformed its benchmark index, the Lehman Brothers New Jersey Mutual
Fund Index, which returned 6.31% and 15.66% for the same periods.
For Series B shares from which a sales load has been deducted, the returns
were 1.95% and 11.09%, respectively; for Series B shares without a sales load,
returns were 6.79% and 16.34%.
As of December 31, the average weighted maturity of the Fund was 13.67
years, and the 30-day yield was 4.65% and 4.25% for A and B shares,
respectively.
The Fund was well positioned to take advantage of the bond market's
second-half rally, with a longer average weighted maturity than its benchmark
index. And, because long Treasury yields also declined significantly, long-term
municipal bonds still remain a good relative value versus taxable securities.
We intend to increase our exposure to bonds maturing beyond 16 years, given
the good relative value of long-term municipal bonds and our positive
fundamental outlook for the bond market.
Additionally, we believe that quality spreads can widen, given weaker
economic conditions. The Fund is well positioned for this, with 80% of the
securities rated A or better, and 76% rated AA or better.
Quick Fund Facts -- NJ Municipal Bond
-------------------------------------
Inception Date: May 16, 1994
Portfolio Size: $1.66 million
Shares Outstanding: 158,535 (A&B combined)
Average Weighted Maturity: 13.7 years
[GRAPHIC 18]
[See Appendix A for Description]
Performance (as of December 31, 1995)
-------------------------------------
6-Month Yield NAV
Total Return 30-day 12/31/95
------------ ------ --------
(Cumulative)
Series A 7.02% 4.65% $10.50
Series B without Load 6.79 -- 10.49
Series B with Load 1.95 4.25 10.84
Lehman Mutual Fund NJ 6.31 4.99 --
22 Management's Discussion & Analysis
<PAGE>
/ / CoreFund
Cash Reserve
The CoreFund Cash Reserve, Series A shares, returned 2.72% for the
six-month period ended December 31, 1995. The Fund thus continues to outperform
its benchmark index, the IBC/Donoghue's All-Taxable Money Fund Average, which
returned 2.69% for the same six-month period.
For Series B shares from which a 12b-1 fee is deducted, the Fund's
cumulative return was 2.59%. The Fund's assets grew by nearly 10% during the
period, from $527,924,000 on June 30, 1995 to $569,492,000 at the end of the
year.
As forecast in our annual report, the average weighted maturity (AWM) of
the portfolio was extended from 43 days at the end of June to 49 days at the end
of the year. In a defensive move against a further decline in rates, the AWM is
likely to be extended to 55 days during the current six-month period.
In a period of declining interest rates, the Cash Reserve has been able to
offer above-average returns to the money-market investor through a portfolio
structure that continues to favor commercial paper -- the sector that is now
providing the best absolute value. We have dropped our position in overnight
time deposits and now favor overnight repurchase agreements, as they offer
higher yields and U.S. Treasury collateral.
Overall, the last half of 1995 was marked by investor expectations that
monetary policy would be eased. Even though the Federal Reserve Board actually
acted only twice during
Quick Fund Facts -- Cash Reserve
--------------------------------
Inception Date: August 16, 1985 (Series A)
Portfolio Size: $569.49 million (A&B combined)
Average Weighted Maturity: 49 days
Seven Day Effective Yield: 5.20 (Series A) 4.93 (Series B)
Performance (as of December 31, 1995)
-------------------------------------
6-Month Yield Yield
Total Return 7-day 30-day
------------ ----- ------
(Cumulative) (Compounded)
Series A 2.72% 5.34% 5.22%
Series B 2.59 5.05 4.96
IBC/Donoghue Taxable Avg 2.69 5.28 --
the period to cut the Fed Funds rate, expectations of pending activity
served to put downward pressure on the money market curve throughout the second
half of the year. As a result, at times the U.S. money market was overbought --
an indication that many investors are holding money-market securities with
negative carry (yields below overnight rates).
Management's Discussion & Analysis 23
<PAGE>
December 31, 1995
Managers' Discussion of Fund Performance (continued)
Treasury Reserve
The CoreFund Treasury Reserve, Series A, returned a cumulative yield of
2.69% for the six-month period ended December 31, 1995. For the full calendar
year, Series A shares returned 5.50%.
For Series B shares from which a 12b-1 fee is deducted, the Fund returned a
cumulative yield of 2.56% for the six-month period, and 5.23% for the year.
[GRAPHIC 19]
[See Appendix A for Description]
Assets for the Fund increased in size by 9.5% since June 30, 1995, to total
$548,104,000 on December 31, 1995. Average maturity decreased one day during the
six-month period, to 47 days.
Although assets increased by $47 million during the six-month period, the
average maturity remained stable because of the purchase of longer-term Treasury
securities. Although these
Quick Fund Facts -- Treasury Reserve
------------------------------------
Inception Date: November 21, 1988 (Series A)
Portfolio Size: $548.10 million (A&B combined)
Average Weighted Maturity: 47 days
Seven Day Effective Yield: 5.13 (Series A) 4.88 (Series B)
Performance (as of December 31, 1995)
-------------------------------------
6-Month Yield Yield
Total Return 7-day 30-day
------------ ----------- ------
(Cumulative) (Compounded)
Series A 2.69% 5.26% 5.16%
Series B 2.56 5.00 4.91
IBC/Donoghue Treasury Avg 2.53 4.91 --
securities were 25 to 50 basis points lower in yield when compared to
overnight repurchase agreements (collateralized by Treasuries), purchases were
made up to the eight-months-maturity level, to guard against lower rates in the
future.
In 1996, we look for further easing of the Federal funds rate; the only
question appears to be when the next move will occur. The recent shutdowns of
the Federal government delayed the release of many economic reports, creating
the risk that the Federal Reserve Board would not have a full complement of
key-indicator data available at its end-of-January meeting. This lack of hard
data increased the chances of Fed inaction in the early part of 1996.
Although a 50 basis point ease continues to be factored into market prices,
we will continue to look for buying opportunities along the Treasury bill yield
curve, while targeting the 45- to 55-day range for the average maturity of the
Fund.
24 Management's Discussion & Analysis
<PAGE>
/ / CoreFund
Tax-Free Reserve
The CoreFund Tax-Free Reserve, Series A, returned 1.66% for the six-month
period ended December 31, 1995. This compared with a 2.53% return during the
same period for the Fund's benchmark index, the Donoghue Tax-Free Average.
For Series B shares from which a 12b-1 fee is deducted, the Fund returned
1.53% during the six-month period.
The Fund's net assets during the period decreased 4.50%, from $64,280,000
on June 30, 1995 to $61,373,000 on December 31, 1995.
Compared with its benchmark index, the Fund is maintaining a longer average
maturity. During the six-month period, the Fund's average maturity increased
from 34 to 55 days. During this same period, the Donoghue Tax-Free Index
maintained an average maturity of 48 days.
Looking to 1996, we feel that the Fund is well-positioned for the further
easing of the Federal funds rate that we anticipate.
Quick Fund Facts -- Tax-Free Reserve
-----------------------------------
Inception Date: April 16, 1991 (Series A)
Portfolio Size: $61.37 million (A&B combined)
Average Weighted Maturity: 55 days
Seven Day Effective Yield: 3.85 (Series A) 3.60 (Series B)
Performance (as of December 31, 1995)
-------------------------------------
6-Month Yield Yield
Total Return 7-day 30-day
------------ ---------- ------
(Cumulative) (Compounded)
Series A 1.66% 3.92% 3.38%
Series B 1.53 3.66 3.13
IBC/Donoghue Tax-Free Avg 2.53 4.03 --
Management's Discussion & Analysis 25
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
Growth Equity Fund
[GRAPHIC 20]
[See Appendix A for Description]
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Description Shares Value(000)
- --------------------------------------------------------------------------------
Common Stocks -- 96.9%
Banks -- 8.5%
Bank of New York 40,591 $1,979
Barnett Banks of Florida 35,000 2,065
Citicorp 32,000 2,152
J.P. Morgan 24,000 1,926
Wachovia 18,000 823
------
8,945
------
Broadcasting, Newspapers &
Advertising -- 3.3%
Comcast, Class A Special 88,600 1,611
Liberty Media Group 17,598 473
Tele-Communications
Incorporated, Class A 70,393 1,399
------
3,483
------
Communications Equipment -- 3.5%
Glenayre Technologies* 30,025 1,869
U.S. Robotics* 20,106 1,764
------
3,633
------
Computers & Software Services -- 4.9%
Compaq Computer* 19,300 926
DST Systems* 3,313 94
Electronic Arts* 33,000 862
Hewlett Packard 13,426 1,125
Intuit* 24,500 1,911
- --------------------------------------------------------------------------------
Description Shares Value(000)
- --------------------------------------------------------------------------------
Computers & Software Services (continued)
Silicon Graphics* 6,554 $ 180
------
5,098
------
Drugs -- 15.5%
American Home Products 24,100 2,338
Amgen* 41,864 2,486
Glaxo PLC (ADR) 74,000 2,090
Johnson & Johnson 24,500 2,098
Merck 33,732 2,218
Schering Plough 40,892 2,239
SmithKline Beecham (ADR) 48,550 2,695
------
16,164
------
Electrical Services -- 2.1%
Texas Utilities 54,000 2,221
------
Entertainment -- 3.5%
Circus Circus Enterprises 48,253 1,345
Mirage Resorts* 68,486 2,363
------
3,708
------
Financial Services -- 4.3%
American Express 48,000 1,986
Federal National Mortgage
Association 19,914 2,472
------
4,458
------
Food, Beverage & Tobacco -- 9.0%
Coca Cola 29,300 2,176
ConAgra 33,100 1,365
CPC International 27,100 1,860
PepsiCo 38,450 2,148
Sara Lee 58,500 1,865
------
9,414
------
Household Products -- 2.1%
Gillette 42,800 2,231
------
Insurance -- 3.8%
American International Group 23,400 2,165
Chubb 18,389 1,779
------
3,944
------
Machinery -- 3.1%
GE 33,589 2,418
Lam Research* 17,900 819
------
3,237
------
Miscellaneous Business
Services -- 13.9%
Cisco Systems* 23,200 1,731
Computer Sciences* 30,494 2,142
26 See accompanying notes to financial statements.
<PAGE>
/ / CoreFund Equity Funds
- --------------------------------------------------------------------------------
Description Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
Miscellaneous Business Services (continued)
CUC International* 64,512 $ 2,201
First Data 32,500 2,173
Microsoft* 19,516 1,713
Oracle Systems* 46,083 1,953
Peoplesoft* 24,000 1,032
UUNet Technologies* 24,500 1,544
-------
14,489
-------
Professional Services -- 3.6%
Health Management Associates,
Class A 49,350 1,289
Paychex 49,350 2,461
-------
3,750
-------
Retail -- 1.2%
Office Depot* 66,000 1,304
-------
Semi-Conductors/Instruments -- 2.6%
Intel 14,700 834
Linear Technology 25,000 981
Molex 27,593 876
-------
2,691
-------
Telephones &
Telecommunication -- 12.0%
Bellsouth 24,000 1,044
Frontier 40,410 1,212
GTE 23,000 1,012
LCI International* 82,434 1,690
MCI Communications 86,000 2,247
MFS Communications* 38,356 2,042
Mobile Telecommunications
Technologies* 55,152 1,179
Qualcomm* 25,400 1,092
Worldcom* 30,000 1,058
-------
12,576
-------
Total Common Stocks
(Cost $79,934,160) 101,346
-------
Repurchase Agreements -- 3.2%
Aubrey Lanston 5.875%, dated
12/29/95, matures 1/02/96,
repurchase price $1,100,718
(collateralized by U.S.
Treasury Note, par value
$1,045,000, 8.75%, matures
10/15/97: market value $1,146,792) $1,100 1,100
- --------------------------------------------------------------------------------
Description Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreements (continued)
Nations Bank 5.92%, dated 12/29/95,
matures 1/02/96, repurchase price
$1,100,724 (collateralized by
U.S. Treasury Note, par value
$1,090,000, 6.125%, matures 5/15/98:
market value $1,128,957) $1,100 $ 1,100
Sanwa Bank 5.85%,dated 12/29/95,
matures 1/02/96,repurchase price
$1,100,715 (collateralized
by U.S. Treasury Note, par value
$1,100,000, 5.75%, matures 10/31/00:
market value $1,124,530) 1,100 1,100
-------
Total Repurchase Agreements
(Cost $3,300,000) 3,300
--------
Total Investments -- 100.1%
(Cost $83,234,160) 104,646
--------
Total Other Assets and Liabilities,
Net -- (0.1)% (61)
--------
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 100 million
authorized) based on
8,270,943 outstanding shares 79,986
Portfolio Shares - Series B
($0.001 par value - 100 million
authorized) based on
185,935 outstanding shares 1,677
Accumulated Net Realized
Gain on Investments 1,516
Net Unrealized Appreciation
on Investments 21,412
Distributions in Excess of Net
Investment Income (6)
--------
Total Net Assets -- 100% $104,585
========
Net Asset Value & Redemption Price
Per Share
Series A $12.37
======
Series B $12.35
======
See accompanying notes to financial statements. 27
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- --------------------------------------------------------------------------------
Value Equity Fund
[GRAPHIC 21]
[See Appendix A for Description]
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks -- 97.9%
Aerospace & Defense -- 6.1%
Loral 21,100 $ 746
Rockwell International 25,000 1,322
------
2,068
------
Aircraft -- 4.9%
Boeing 15,000 1,175
Sundstrand 7,000 493
------
1,668
------
Apparel/Textiles -- 3.6%
Bernard Chaus* 50,000 181
Kellwood 50,000 1,019
------
1,200
------
Banks -- 4.7%
PNC Bank 38,000 1,226
Park National 8,000 381
------
1,607
------
Chemicals -- 1.4%
FMC* 7,300 494
------
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Drugs -- 8.2%
Caremark International* 60,000 $1,087
Elan 35,000 1,702
------
2,789
------
Financial Services -- 7.3%
Franklin Resources 12,000 604
Household International 11,800 698
Merrill Lynch 5,000 255
Paine Webber Group 45,000 900
------
2,457
------
Food, Beverage & Tobacco -- 2.1%
Schweitzer-Manduit International* 30,000 694
------
Household Products -- 4.9%
Sherwin Williams 14,500 591
Stanley Works 20,800 1,071
------
1,662
------
Insurance -- 6.0%
Progressive of Ohio 30,000 1,466
Reliance Group Holdings 63,900 551
------
2,017
------
Machinery -- 4.7%
General Instrument* 25,000 584
Harnischfeger Industries 30,000 998
------
1,582
------
Medical Products &
Services -- 6.6%
Columbia/HCA Healthcare 25,000 1,269
Varian Associates 20,000 955
------
2,224
------
Miscellaneous
Manufacturing -- 4.6%
Hasbro 50,000 1,550
------
Paper & Paper Products -- 2.5%
Kimberly Clark 10,000 828
------
Petroleum & Fuel
Products -- 4.7%
Anadarko Petroleum 15,000 812
Western Atlas 15,300 773
------
1,585
------
28 See accompanying notes to financial statements.
<PAGE>
/ / CoreFund Equity Funds
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Petroleum Refining -- 5.4%
Atlantic Richfield 7,000 $ 775
Murphy Oil 25,000 1,037
------
1,812
------
Precious Metals -- 3.0%
Barrick Gold 38,400 1,013
------
Printing & Publishing -- 6.4%
Gannett 17,900 1,099
Knight-Ridder* 17,000 1,062
------
2,161
------
Professional Services -- 2.9%
Flight Safety International 20,000 1,005
------
Railroads -- 2.1%
Conrail 10,000 700
------
Retail -- 5.8%
Circuit City Stores 30,900 853
Sears Roebuck 28,200 1,100
------
1,953
------
Total Common Stocks
(Cost $30,015,168) 33,069
------
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreements -- 0.4%
Aubrey Lanston 5.875%, dated
12/29/95, matures 1/02/96,
repurchase price $72,047
(collateralized by U.S. Treasury
Note, par value $70,000, 8.75%
matures 10/15/97: market
value $76,819) $72 $ 72
Sanwa Bank 5.85%, dated 12/29/95,
matures 1/02/96, repurchase price
$72,047 (collateralized by U.S.
Treasury Note, par value $70,000,
5.75%, matures 10/31/00: market
value $73,440) 72 72
------
Total Repurchase Agreements
(Cost $144,000) 144
------
Total Investments -- 98.3%
(Cost $30,159,168) 33,213
------
Total Other Assets and Liabilities,
Net -- 1.7% 564
------
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 25
million authorized) based on
2,406,064 outstanding shares 28,929
Portfolio Shares - Series B
($0.001 par value - 25 million
authorized) based on
210,607 outstanding shares 1,580
Accumulated Net Realized Gain
on Investments 214
Net Unrealized Appreciation on
Investments 3,054
-------
Total Net Assets -- 100% $33,777
=======
Net Asset Value & Redemption Price
Per Share
Series A $12.91
======
Series B $12.92
======
* Non-income producing security
See accompanying notes to financial statements. 29
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- --------------------------------------------------------------------------------
Equity Index Fund
[GRAPHIC 22]
[See Appendix A for Description]
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks -- 95.5%
Aerospace & Defense -- 0.9%
Lockheed Martin 5,800 $ 458
Loral 3,800 134
Raytheon 6,000 284
Rockwell International 5,763 305
TRW 1,500 116
------
1,297
------
Agriculture -- 0.1%
Pioneer Hi-Bred International 2,500 139
------
Air Transportation -- 0.4%
AMR* 1,800 133
Delta Air Lines 1,000 74
Federal Express* 1,300 96
Southwest Airlines 3,300 77
US Air Group* 15,300 203
------
583
------
Aircraft -- 1.4%
Boeing 9,937 779
General Dynamics 1,700 100
McDonnell Douglas 2,700 248
Northrop Grumman 1,700 109
Parker Hannifin 2,850 98
Teledyne 3,700 95
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Aircraft (continued)
Textron 2,000 $ 135
United Technologies 4,300 408
------
1,972
------
Apparel/Textiles -- 0.4%
Liz Claiborne 5,000 139
Nike 3,400 237
Russell 3,100 86
V.F 1,500 79
------
541
------
Automotive -- 2.5%
Allied Signal 7,700 366
Chrysler 10,700 593
Dana 4,600 135
Echlin 2,500 91
Fleetwood Enterprises 4,055 104
Ford Motor 28,700 832
General Motors 20,900 1,105
Paccar 1,500 63
Varity* 2,700 100
------
3,389
------
Banks -- 6.3%
Banc One 12,222 461
Bank of Boston* 2,900 134
Bank of New York 5,500 268
BankAmerica 10,800 699
Bankers Trust New York 1,800 120
Barnett Banks of Florida 2,200 130
Boatmens Bancshares 4,600 188
Chase Manhattan 4,200 255
Chemical Banking 7,100 417
Citicorp 11,500 773
Comerica 3,600 144
First Bank System 3,800 189
First Chicago NBD 8,901 352
First Fidelity Bancorp 1,800 136
First Interstate 1,900 259
First Union 5,500 306
Fleet Financial Group 6,401 261
Golden West Financial 1,800 99
Great Western Financial 3,800 97
H.F. Ahmanson 3,600 95
J.P. Morgan 5,800 465
Keycorp 7,800 283
MBNA 3,300 122
National City 4,300 142
NationsBank 7,200 501
30 See accompanying notes to financial statements.
<PAGE>
/ / CoreFund Equity Funds
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Banks (continued)
Norwest 10,900 $ 360
PNC Bank 8,900 287
Suntrust Banks 4,200 288
U.S. Bancorp 4,300 145
UST 4,600 154
Wachovia 3,900 178
Wells Fargo 1,500 324
-----
8,632
-----
Beauty Products -- 1.8%
Alberto Culver, Class B 3,200 110
Avon Products 1,600 121
Colgate Palmolive 4,246 298
Dial 3,300 98
Ecolab 3,300 99
International Flavors & Fragrances 2,500 120
Procter & Gamble 19,200 1,593
-----
2,439
-----
Broadcasting, Newspapers &
Advertising -- 1.1%
Capital Cities ABC 4,000 493
Comcast, Class A 5,400 98
Interpublic Group 2,200 95
Tele-Communications, Class A* 18,900 376
Viacom, Class B* 10,526 499
-----
1,561
-----
Building & Construction -- 0.3%
Fluor 1,900 125
Halliburton 2,600 131
McDermott International 3,400 75
Owens Corning Fiberglas* 2,800 126
-----
457
-----
Chemicals -- 3.2%
Air Products & Chemical 2,600 137
B.F. Goodrich 2,100 143
Dow Chemical 8,150 574
E.I. DuPont de Nemours 16,000 1,118
Eastman Chemical 1,900 119
FMC* 1,400 95
Great Lakes Chemical 1,600 115
Hercules 2,700 152
Lilly (Eli) 17,400 979
Monsanto 3,900 478
Nalco Chemical 2,300 69
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Chemicals (continued)
Rohm & Haas 1,500 $ 97
Union Carbide 3,400 127
W.R. Grace 2,100 124
------
4,327
------
Communications Equipment -- 2.2%
Cisco Systems* 7,200 537
ITT Industries* 3,100 74
ITT* 3,100 164
Motorola 17,400 992
Northern Telecom 7,300 314
Scientific-Atlanta 11,200 168
Sprint 10,800 431
Tellabs 3,100 115
US West Media Group 13,600 258
------
3,053
------
Computers & Services -- 5.9%
Amdahl 8,100 69
Apple Computer 2,600 83
Automatic Data Processing 3,700 275
Compaq Computer* 8,700 418
Ceridian* 3,400 140
Computer Associates International 6,900 392
Computer Sciences* 1,900 133
Cray Research* 4,200 104
Digital Equipment* 3,900 250
DSC Communications* 2,591 96
First Data 6,500 435
Harris Computer Systems 1,600 87
Hewlett Packard 15,100 1,265
International Business Machines 15,700 1,440
Microsoft* 16,800 1,474
Novell* 8,300 118
Oracle Systems* 11,450 485
Pitney Bowes 5,000 235
Silicon Graphics 4,600 127
Sun Microsystems* 5,600 255
Tandem Computers* 5,986 64
Tandy 2,000 83
Unisys* 23,500 132
------
8,160
------
Containers & Packaging -- 0.1%
Crown Cork & Seal* 2,100 88
Newell 3,600 93
------
181
------
See accompanying notes to financial statements. 31
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- --------------------------------------------------------------------------------
Equity Index Fund (continued)
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Drugs -- 7.7%
Abbott Labs 23,600 $ 985
Alza* 3,400 84
American Home Products 8,900 863
Amgen* 7,600 451
Baxter International 7,800 327
Bristol-Myers Squibb 14,720 1,264
Johnson & Johnson 18,400 1,576
Mallinckrodt Group 3,300 120
Merck 34,600 2,275
Pfizer 17,600 1,109
Pharmacia & Upjohn 14,155 549
Schering Plough 10,900 597
Warner Lambert 3,700 359
-------
10,559
-------
Electrical Equipment -- 2.9%
Emerson Electric 6,300 515
General Electric 47,800 3,442
-------
3,957
-------
Electrical Services -- 3.2%
American Electric Power 4,200 170
Baltimore Gas & Electric 4,700 134
Carolina Power & Light 3,600 124
Central & South West 5,400 150
Cinergy 4,600 141
Consolidated Edison of New York 5,300 170
Detroit Edison 3,300 114
Dominion Resources of Virginia 5,500 227
Duke Power 6,100 289
Entergy 5,200 152
FPL Group 6,100 283
General Public Utilities 4,200 143
Houston Industries 5,800 141
Niagara Mohawk Power 11,200 108
Northern States Power 1,700 83
Ohio Edison 4,100 96
Pacific Gas and Electric 11,500 326
PECO Energy 5,000 151
Pacificorp 6,400 136
Public Service Enterprise Group 5,500 168
SCEcorp 13,400 238
Southern 17,100 421
Texas Utilities 5,100 210
Unicom 4,800 157
Union Electric Power 2,300 96
------
4,428
------
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Entertainment -- 0.7%
King World Productions* 2,600 $ 101
Walt Disney 15,100 891
------
992
------
Environmental Services -- 0.4%
Browning Ferris Industries 5,900 174
WMX Technologies 12,900 385
------
559
------
Financial Services -- 2.8%
Allstate* 13,000 535
American Express 14,400 596
Beneficial 2,400 112
Dean Witter Discover 3,700 174
Federal Home Loan Mortgage
Corporation 4,700 392
Federal National Mortgage
Association 8,200 1,018
Household International 2,100 124
Mellon Bank 5,700 306
Merrill Lynch 4,600 234
Morgan Stanley Group 2,100 169
Providian 2,300 94
Salomon 2,500 89
------
3,843
------
Food, Beverage & Tobacco -- 8.3%
American Brands 4,500 201
Anheuser Busch 6,900 461
Archer Daniels Midland 15,672 282
Brown Forman, Class B 2,700 99
Campbell Soup 6,800 408
CPC International 3,400 233
Coca Cola 35,600 2,643
ConAgra 7,300 301
Coors, Adolph Class B 5,600 124
General Mills 5,900 341
H.J. Heinz 10,650 353
Hershey Foods 2,000 130
Kellogg 6,100 471
PepsiCo 23,000 1,285
Philip Morris 24,300 2,199
Quaker Oats 3,000 103
Ralston-Ralston Purina Group 2,300 143
Sara Lee 12,600 402
Seagram 10,300 357
Unilever NV 4,400 619
Whitman 5,100 119
Wrigley, William Jr. 2,600 137
------
11,411
------
32 See accompanying notes to financial statements.
<PAGE>
/ / CoreFund Equity Funds
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Gas/Natural Gas--1.0%
Coastal 2,500 $ 93
Columbia Gas Systems* 3,500 154
Consolidated Natural Gas 2,100 95
Enron 7,300 278
Nicor 3,700 102
Noram Energy 17,800 158
Pacific Enterprises 3,800 107
Panhandle Eastern 4,200 117
Peoples Energy 4,100 130
Sonat 2,300 82
Williams 2,500 110
-------
1,426
-------
Glass Products--0.4%
Corning 6,100 195
PPG Industries 7,300 334
-------
529
-------
Hotels & Lodging--0.2%
Harrah's Entertainment 2,300 56
Hilton Hotels 1,100 67
Marriott International 2,900 111
-------
234
-------
Household Furniture &
Fixtures--0.5%
Armstrong World Industries 1,600 99
Illinois Tool Works 2,500 147
Masco 3,500 110
Sherwin Williams 2,300 94
Snap-On Tools 2,700 122
Stanley Works 1,800 93
-------
665
-------
Household Products--0.7%
Clorox 1,300 93
Gillette 11,800 615
Maytag 5,600 113
National Service Industries 3,000 97
Whirlpool 1,700 91
-------
1,009
-------
Insurance--3.8%
Aetna Life & Casualty 2,500 173
Alexander & Alexander Services 4,400 84
American General 5,400 188
American International Group 13,268 1,227
Chubb 2,000 194
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Insurance (continued)
Cigna 2,900 $ 299
General Re 2,400 372
ITT Hartford Group* 3,100 150
Jefferson-Pilot 2,100 98
Lincoln National 2,100 113
Loews 3,400 266
Marsh and McLennan 1,700 151
Safeco 2,800 97
St. Paul 4,727 263
Torchmark 1,800 81
Transamerica 1,600 117
Travelers 8,400 528
U.S. Healthcare 3,600 167
United Healthcare 5,100 334
Unum 1,700 93
USF&G 5,500 93
USLife 3,900 117
-------
5,205
-------
Lumber & Wood Products--0.2%
Georgia Pacific 2,700 185
Potlatch 2,100 84
------
269
------
Machinery--1.6%
Applied Materials* 4,600 181
Baker Hughes 4,000 98
Black & Decker 3,500 124
Brunswick 3,500 84
Caterpillar 4,700 276
Crane 3,100 114
Deere 7,800 275
Dover 2,800 103
Dresser Industries 3,900 95
Eaton 1,700 91
Ingersoll Rand 2,400 84
Tenneco 5,000 248
Texas Instruments 5,200 269
Timken 2,500 96
Tyco Labs 3,400 121
------
2,259
------
Measuring Devices--0.4%
General Signal 2,100 68
Honeywell 2,900 141
Johnson Controls 1,500 103
See accompanying notes to financial statements.
33
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- --------------------------------------------------------------------------------
Equity Index Fund (continued)
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Measuring Devices (continued)
Millipore 3,400 $ 140
Pall 4,500 121
------
573
------
Medical Products &
Services--1.5%
Bausch & Lomb 2,000 79
Becton Dickinson 1,900 143
Beverly Enterprises 6,600 70
Boston Scientific* 4,300 211
Columbia/HCA Healthcare 12,400 629
Humana 4,800 131
Medtronic 8,000 447
St. Jude Medical 3,300 142
Tenet Healthcare 4,100 85
United States Surgical 2,900 62
------
1,999
------
Metals & Mining--0.9%
Alcan Aluminum 5,000 156
Aluminum Company of America 5,200 275
Asarco 3,300 105
Cyprus AMAX Minerals 2,400 63
Engelhard 3,900 85
Freeport-McMoran Copper &
Gold, Class B 6,000 169
Inco 2,600 86
Newmont Mining 1,900 86
Phelps Dodge 1,600 99
Reynolds Metals 1,500 85
------
1,209
------
Miscellaneous Business
Services--0.0%
Ogden 2,600 56
------
Miscellaneous Chemical
Products--0.2%
Morton International 3,300 118
Raychem 1,900 108
------
226
------
Miscellaneous Consumer
Services--0.2%
H & R Block 2,400 97
Service International 2,900 128
------
225
------
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Miscellaneous
Manufacturing--0.2%
Hasbro 2,400 $ 74
Mattel 5,000 154
------
228
------
Paper & Paper Products--2.5%
Avery Dennison 2,300 115
Bemis 3,500 90
Boise Cascade 2,800 97
Champion International 2,200 92
Federal Paper Board 2,700 140
International Paper 7,000 265
James River 3,200 77
Kimberly Clark 11,252 931
Mead 1,600 84
Minnesota Mining &
Manufacturing 12,800 848
Moore 4,100 76
Stone Container* 3,800 55
Temple Inland 1,400 62
Union Camp 1,550 74
Westvaco 3,150 87
Weyerhaeuser 6,006 260
Willamette Industries 1,900 107
------
3,460
------
Petroleum Refining--8.5%
Amerada Hess 2,100 111
Amoco 13,900 999
Ashland 2,100 74
Atlantic Richfield 4,500 498
Burlington Resources 2,900 114
Chevron 19,100 1,003
Enserch 6,600 107
Exxon 35,100 2,812
Helmerich and Payne 2,000 60
Kerr-McGee 1,500 95
Louisiana Land & Exploration 3,100 133
Mobil 11,500 1,288
Occidental Petroleum 6,900 148
Oryx Energy 8,400 112
Pennzoil 1,500 63
Phillips Petroleum 7,200 246
Royal Dutch Petroleum 15,000 2,117
Santa Fe Energy Resources 7,300 70
Schlumberger 6,400 443
Texaco 8,500 667
Unocal 6,400 187
USX Marathon Group 6,500 127
See accompanying notes to financial statements.
34
/ / CoreFund Equity Funds
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Petroleum Refining (continued)
USX--U.S. Steel Group 1,900 $ 59
Western Atlas 2,500 126
------
11,659
------
Photographic Equipment &
Supplies--0.8%
Eastman Kodak 9,600 643
Polaroid 2,300 109
Xerox 2,800 384
------
1,136
------
Precious Metals--0.5%
Barrick Gold 12,000 317
Echo Bay Mines 9,100 94
Homestake Mining 6,800 106
Placer Dome Group 5,400 130
------
647
------
Printing & Publishing--1.3%
American Greetings, Class A 3,200 88
Deluxe 2,500 73
Dow Jones 5,600 223
Gannett 3,300 203
Knight-Rider* 1,500 94
McGraw-Hill 1,100 96
Meredith 3,000 126
New York Times, Class A 3,200 95
R.R. Donnelley & Sons 3,200 126
Time Warner, Class A 9,900 375
Times Mirror, Class A 3,900 132
Tribune 1,500 92
------
1,723
------
Professional Services--0.2%
Dun & Bradstreet 4,700 304
------
Railroads--1.0%
Burlington Northern Santa Fe 3,964 309
Conrail 1,800 126
CSX 6,200 283
Norfolk Southern 3,100 246
Union Pacific 6,300 416
------
1,380
------
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Retail--5.1%
Albertson's 6,400 $ 210
Campbell Soup 3,200 86
Circuit City Stores 3,000 83
Dayton-Hudson 1,600 120
Dillard Department Stores, Class A 2,700 77
Federated Department Stores* 5,700 157
Gap 3,300 139
Giant Food, Class A 3,900 123
Great Atlantic & Pacific Tea 4,000 92
Harcourt General 2,300 96
Home Depot 13,466 645
J.C. Penney 6,500 310
K Mart 10,000 73
Kroger* 3,100 116
Limited 9,500 165
Lowes 3,500 117
May Department Stores 6,900 292
McDonald's 20,600 930
Melville 2,400 74
Mercantile Stores 2,200 102
Nordstrom 1,800 73
Pep Boys - Manny Moe & Jack 3,226 83
Price/Costco* 4,900 75
Rite Aid 3,700 127
Sears Roebuck 11,500 448
TJX Companies 6,700 126
Toys R Us* 6,500 141
Wal Mart Stores 64,900 1,452
Walgreen 5,600 167
Wendy's International 5,900 125
Winn Dixie Stores 3,400 125
Woolworth* 7,500 97
------
7,046
------
Rubber & Plastic--0.4%
Cooper Tire & Rubber 3,000 74
Goodyear Tire & Rubber 3,380 153
Premark International 1,700 86
Reebok International 2,000 57
Rubbermaid 6,300 161
------
531
------
Semi-Conductors/
Instruments--1.5%
AMP 6,200 238
Intel 23,100 1,311
LSI Logic 4,000 131
Micron Technology 5,900 234
National Semiconductor* 5,600 125
------
2,039
------
See accompanying notes to financial statements.
35
As of December 31, 1995 (Unaudited)
Statement of Net Assets
Equity Index Fund (concluded)
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Specialty Machinery--0.2%
Cooper Industries 2,600 $ 96
Westinghouse Electric 8,000 132
--------
228
--------
Steel & Steel Works--0.2%
Bethlehem Steel* 5,900 83
Nucor 2,000 114
Worthington Industries 4,600 96
--------
293
--------
Technology, Services--0.2%
Cabletron Systems* 2,000 162
CUC International* 5,000 171
--------
333
--------
Telephones &
Telecommunication--7.9%
AT&T 46,736 3,026
Airtouch Communications* 13,100 370
Alltel 5,500 162
Ameritech 16,000 944
Bell Atlantic 11,900 796
Bellsouth 27,800 1,209
GTE 28,100 1,237
MCI Communications 20,158 527
NYNEX 12,600 680
Pacific Telesis Group 11,500 387
SBC Telecommunications 17,076 982
US West 13,600 486
--------
10,806
--------
Trucking--0.2%
Cummins Engine 1,900 70
Pittston Services Group 3,700 116
Roadway Services 1,300 64
Ryder System 1,500 37
--------
287
--------
Wholesale--0.5%
Alco Standard 2,400 110
Fleming Companies 5,000 103
Genuine Parts 2,800 115
Praxair 3,500 118
Super-Valu 2,700 85
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Wholesale (continued)
Sysco 4,100 $ 133
W.W. Grainger 1,200 79
--------
743
--------
Total Common Stocks
(Cost $100,103,075) 131,207
--------
Repurchase Agreements--0.5%
Aubrey Lanston 5.875%, dated
12/29/95, matures 01/02/96,
repurchase price $349,228
(collateralized by U.S.
Treasury Note, par value
$330,000, 8.75%, matures
10/15/97: market value
$362,145) $ 349 349
Swiss Bank 5.85%, dated
12/29/95, matures 01/02/96,
repurchase price $348,226
(collateralized by U.S.
Treasury Note, par value
$345,000, 6.000%, matures
08/31/97: market
value $363,426) 348 348
--------
Total Repurchase Agreements
(Cost $697,000) 697
--------
Total Investments--96.0%
(Cost $100,800,075) 131,904
--------
Total Other Assets and Liabilities,
Net--4.0% 5,446
--------
Net Assets:
Portfolio Shares ($0.001 par value -
500 million authorized) based on
5,259,006 outstanding shares 105,797
Accumulated Net Realized Gain
on Investments 450
Net Unrealized Appreciation on
Investments 31,104
Distributions in Excess of Net
Investment Income (1)
---------
Total Net Assets--100% $ 137,350
---------
---------
Net Asset Value & Redemption Price
Per Share $ 26.12
---------
---------
* Non-income producing security
See accompanying notes to financial statements.
36
<PAGE>
/ / CoreFund Equity Funds
International Growth Fund
- --------------------------------------------------------------------------------
[Graphic 23]
[See Appendix A for Description]
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Foreign Stocks--97.5%
Argentina--0.5%
Buenos Aires Embotelladora ADS 5,200 $ 107
Capex GDR 12,500 175
Compania Naviera Perez ADS,
series B 36,700 195
YPF Sociedad Anonima ADS 5,400 117
---------
594
---------
Australia--2.4%
Broken Hill Proprietary 121,770 1,719
M.I.M. Holdings 340,000 470
Qantas Airways 313,000 521
---------
2,710
---------
Austria--0.8%
Oest Elektrizatswirts, Series A 5,047 303
Vienna International Airport 9,500 632
---------
935
---------
Belgium--0.6%
Kredietbank 2,600 712
---------
Brazil--1.8%
Cemig ADR 12,100 270
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Brazil (continued)
Compania Vale Rio Doce ADR 11,200 $ 465
Eletrobras ADR* 24,500 334
Rhodia-Ster GDR 20,097 180
Telebras ADR 13,450 637
Usiminas ADR 18,600 149
---------
2,035
---------
Chile--0.6%
Madeco ADR 7,930 214
Maderas y Sinteticos Sociedad ADS 12,500 244
Sociedad Quimica y Minera ADR 4,861 228
---------
686
---------
Colombia--0.3%
Cementos Diamante GDS 18,800 334
---------
Ecuador--0.2%
La Cemento Nacional GDR* 1,232 216
---------
France--5.4%
AXA 13,500 911
Imetal SA 3,887 465
L'Oreal 4,800 1,287
Peugeot 7,500 991
Schneider 25,600 876
Seita 22,000 799
Societe Nationale Elf Aquitaine 10,466 772
---------
6,101
---------
Germany--3.4%
Hoechst 3,000 817
Mannesmann 4,300 1,370
Veba 40,000 1,714
---------
3,901
---------
Hong Kong--6.6%
Amoy Properties 1,062,000 1,058
China Light & Power 200,000 921
HSBC Holdings 153,081 2,316
Hutchison Whampoa 265,000 1,614
Swire Pacific, Series A 207,000 1,606
---------
7,515
---------
India--1.1%
Himilayan Fund* 77,718 913
Himilayan Fund Warrants* 7,243 2
Indian Opportunities Fund* 41,982 386
---------
1,301
---------
See accompanying notes to financial statements.
37
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- --------------------------------------------------------------------------------
International Growth Fund (continued)
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Israel--0.5%
Near East Opportunities Fund* 59,000 $ 591
-------
Italy--1.8%
Rinascente 162,000 982
Telecom Italia Mobile* 635,000 1,120
-------
2,102
-------
Japan--31.4%
Amano 47,000 592
Asahi Chemical Industries 198,000 1,515
Asahi Diamond Industrial 43,000 604
Canon 81,000 1,468
Daifuku 43,000 608
DDI 147 1,139
Eiden Sakakiya 27,000 340
Hitachi 163,000 1,642
Hitachi Metals 97,000 1,212
Ito Yokado 15,000 924
Itochu 201,000 1,353
Kamigumi 102,000 979
Kirin Beverage 35,000 471
Komori 3,000 76
Kuraray Warrants* 360 189
Kyocera 21,000 1,560
Mabuchi Motor 9,000 560
Marui Company 44,000 917
Maspro Denkoh 14,400 201
Mitsubishi Heavy Industries 231,000 1,842
Mitsui Fudosan 83,000 1,021
Nippon Express 137,000 1,319
Nippon System Development 17,000 245
Nomura Securities 77,000 1,679
Organo 40,000 438
Riso Kagaku Corporation 6,100 515
Rohm Company 32,000 1,807
Sekisui Warrants* 155 349
Shimachu 17,000 545
Shin-Etsu Chemical 66,000 1,368
Sony Corporation 24,000 1,439
Sumitomo Electric 61,000 733
Sumitomo Forestry 88,000 1,347
Sumitomo Trust & Banking 110,000 1,556
Taisho Pharmaceutical 21,000 415
Tokio Marine & Fire Insurance 109,000 1,426
Toyota Motor 63,000 1,337
-------
35,731
-------
Luxembourg--0.2%
Millicom International Cellular* 6,800 207
-------
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Malaysia--4.1%
AMMB Holdings 106,000 $ 1,211
Edaran Otomobil 80,000 602
Genting Berhad 157,000 1,311
Resorts World Berhad 88,000 471
United Engineers 150,000 957
-------
4,552
-------
Mexico--0.7%
Corporacion Ind Alfa,
series A NPV * 13,000 167
Empresas ICA Sociedad
Controlladora ADR 16,000 164
Grupo Carso SA ADS* 15,500 171
Grupo Financiero Banamex,
series B * 75,000 125
Kimberly Clark ADR 5,500 164
-------
791
-------
Netherlands--3.5%
Elsevier NV 131,750 1,760
ING Groep 17,382 1,164
Koninkijike PTT Nederland 17,000 619
Polygram 8,500 452
-------
3,995
-------
Singapore--4.2%
Development Bank of
Singapore 106,000 1,320
First Capital Corporation 227,000 629
Jardine Matheson &
Company (U.S.) 156,800 1,074
Singapore Press 98,400 1,740
-------
4,763
-------
South Africa--1.4%
Iscor 140,100 126
Malbak 50,000 346
Murray & Roberts 34,500 244
Safmarine & Rennie Holding
Limited 80,000 291
Sasol 35,000 287
South African Brewery 7,400 271
-------
1,565
-------
South Korea--0.5%
CITC Seoul Excel Trust IDR* 18 191
Korea Preferred Share Fund* 41,000 411
-------
602
-------
See accompanying notes to financial statements.
38
/ / CoreFund Equity Funds
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Spain--1.9%
Banco de Santander 23,000 $ 1,155
Fom de Const y Contratas SA 5,000 384
Repsol Petroleum SA 19,220 630
---------
2,169
---------
Sweden--1.1%
Ericsson, series B 29,000 569
Stora Kopparbergs, series A Free 61,000 717
---------
1,286
---------
Switzerland--3.2%
Nestle SA Registered 1,040 1,152
Roche Holding 197 1,561
Zurich Insurance* 3,150 943
---------
3,656
---------
Taiwan--1.5%
Taiwan Opportunities Fund* 204,500 1,693
---------
Thailand--1.2%
Thai Military Bank 335,000 1,357
---------
United Kingdom--16.6%
Argyll Group 170,000 898
Barratt Development 269,000 1,032
British Airways 109,000 789
British Telecommunications 138,000 759
BTR Warrants* 265,000 270
Cable & Wireless 80,000 571
Dixons Group 82,000 568
East Midlands Electricity 67,532 699
Glaxo Wellcome 93,000 1,321
Granada Group 96,000 962
GKN 86,000 1,040
Ladbroke 353,000 803
Lex Service 101,833 484
McKenchie 84,000 520
NFC 362,000 798
Reckitt & Coleman 100,000 1,107
Shell Transportation & Trading 55,000 728
Tomkins 323,000 1,415
TSB Lloyds Group 188,000 968
Unilever 64,000 1,315
- --------------------------------------------------------------------------------
Description Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
United Kingdom (continued)
Wassall 168,750 705
Wolseley 171,000 1,198
---------
18,950
---------
Total Foreign Stocks
(Cost $100,960,524) $ 111,050
---------
Convertible Bond--1.1%
Japan--1.1%
Mitsubishi Bank
3.000%, 11/30/02 $ 1,100 1,297
---------
Total Convertible Bond
(Cost $1,131,625) 1,297
---------
Time Deposit--3.4%
Chase Manhattan Bank
5.375%, 01/02/96 $ 3,820 3,820
---------
Total Time Deposit
(Cost $3,820,000) 3,820
---------
Total Investments-102.0%
(Cost $105,912,149) 116,167
---------
Total Other Assets and Liabilities,
Net--(2.0%) (2,269)
---------
Net Assets:
Portfolio Shares - Series A ($0.001 par
value-25 million authorized) based
on 8,600,047 outstanding shares 99,406
Portfolio Shares - Series B ($0.001 par
value - 25 million authorized) based
on 151,846 outstanding shares 1,955
Accumulated Net Realized Gain on
Investments 1,885
Accumulated Net Realized Loss on Foreign Currency
Transactions (5)
Net Unrealized Appreciation on Foreign Currency
Translation of Other Assets and Liabilities Denominated
in Foreign Currency 551
Net Unrealized Appreciation on Investments 10,255
Distributions in Excess of Net Investment Income (149)
---------
Total Net Assets--100.0% $113,898
=========
Net Asset Value & Redemption
Price Per Share
Series A $ 13.01
=========
Series B $ 13.01
=========
* Non-income producing security
ADR - American Depository Receipts
ADS - American Depository Shares
GDR - Global Depository Receipts
GDS - Global Depository Shares
IDR - International Depository Receipts
See accompanying notes to financial statements.
39
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
Balanced Fund
[Graphic 24]
[See Appendix A for Description]
% of Total Portfolio Investments
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Common Stocks--61.6%
Aerospace & Defense--1.2%
Loral 24,000 $ 849
------
Automotive-1.6%
General Motors, Class E 12,000 624
General Motors, Class H 10,000 491
------
1,115
------
Banks-5.8%
Amsouth Bancorp 25,000 1,009
Barnett Banks of Florida 11,000 649
CCB Financial 15,000 832
First Virginia 10,000 417
J.P. Morgan 10,000 803
Wells Fargo 2,000 432
------
4,142
------
Beauty Products-0.6%
Procter & Gamble 5,275 438
------
Chemicals-0.7%
Monsanto 4,000 490
------
Communications-1.6%
Cisco Systems* 9,100 679
Qualcomm 10,000 430
------
1,109
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Communications Equipment-2.0%
Glenayre Technologies 10,000 $ 623
U.S. Robotics 9,200 807
------
1,430
------
Computers & Services-2.0%
Hewlett Packard 7,400 620
Intuit 10,000 780
------
1,400
------
Drugs-11.5%
American Home Products 10,000 970
Amgen* 13,600 807
Bristol-Myers Squibb 5,000 429
Chiron* 3,767 416
Glaxo PLC (ADR) 30,400 859
Johnson & Johnson 6,600 565
Mallinckrodt Group 15,000 546
Merck 11,600 763
Schering Plough 17,000 931
SmithKline Beecham (ADR) 16,000 888
Warner Lambert 10,000 971
------
8,145
------
Electrical Equipment-1.7%
Emerson Electric 5,750 470
General Electric 10,000 720
------
1,190
------
Electrical Utilities-1.2%
Public Service Enterprise Group 26,900 824
------
Financial Services-2.4%
American Express 20,000 827
Federal National Mortgage
Association 7,200 894
------
1,721
------
Food, Beverage & Tobacco-3.5%
Coca Cola 7,600 564
ConAgra 12,000 495
General Mills 10,000 578
PepsiCo 8,000 447
Sara Lee 13,300 424
------
2,508
------
Household Products-2.2%
Gillette 10,600 553
Hubbell, Class B 15,000 986
------
1,539
------
See accompanying notes to financial statements.
40
<PAGE>
/ / CoreFund Equity Funds
- --------------------------------------------------------------------------------
Description Shares Value (000)
- --------------------------------------------------------------------------------
Insurance--3.2%
American International Group 6,000 $ 555
Chubb 10,000 967
General Re 5,000 775
-------
2,297
-------
Measuring Devices-1.2%
Honeywell 17,000 827
-------
Paper & Paper Products-1.1%
Kimberly Clark 9,204 762
-------
Petroleum Refining-5.1%
Amoco 7,500 539
Atlantic Richfield 5,875 651
Burlington Resources 12,500 491
Chevron 10,000 525
Exxon 10,300 825
Mobil 5,100 571
-------
3,602
-------
Professional Services-1.8%
Health Management Associates,
Class A* 19,575 511
Paychex 15,000 748
-------
1,259
-------
Railroads--0.8%
Conrail 8,300 581
-------
Semi-Conductors/
Instruments-2.1%
Amphenal Class* 30,000 728
Linear Technology 20,000 785
-------
1,513
-------
Technology, Services--2.6%
First Data 10,000 669
Oracle Systems 15,300 648
Peoplesoft 10,000 430
UUnet Technologies 2,000 126
-------
1,873
-------
Telephones &
Telecommunication-5.8%
Alltel 15,000 442
Bellsouth 20,000 870
Frontier 30,000 900
- --------------------------------------------------------------------------------
Description Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
Telephones &
Telecommunication (continued)
LCI International 40,000 $ 820
SBC Telecommunications 10,000 575
Worldcom 15,000 529
-------
4,136
-------
Total Common Stocks
(Cost $33,663,628) 43,750
-------
Convertible Preferred Stock-0.7%
Automotive-0.7%
General Motors to 1,408 shares,
Series C, convertible $ 6,500 476
-------
Total Convertible Preferred Stock
(Cost $365,278) 476
-------
U.S. Treasury Obligations-16.3%
U.S. Treasury Bonds
7.250%, 05/15/16 500 571
7.130%, 02/15/23 500 572
U.S. Treasury Notes
4.000%, 01/31/96 1,000 999
5.880%, 05/31/96 2,000 2,005
7.250%, 08/31/96 500 506
6.500%, 09/30/96 2,500 2,522
6.000%, 12/31/97 500 508
5.130%, 03/31/98 500 499
6.000%, 10/15/99 500 512
6.380%, 01/15/00 500 518
6.500%, 08/15/05 500 533
5.880%, 11/15/05 500 511
6.250%, 08/15/23 1,300 1,337
------
Total U.S. Treasury Obligations
(Cost $11,386,507) 11,593
------
U.S. Government Agency
Obligations-1.4%
FHLMC
6.440%, 01/28/00 500 516
FNMA
5.940%, 12/12/05 500 503
------
Total U.S. Government Agency
Obligations
(Cost $1,000,000) 1,019
------
See accompanying notes to financial statements.
41
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
Balanced Fund (continued) / / CoreFund Equity Funds
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. Government Mortgage--Backed
Bonds-4.4%
FHLMC
5.500%, 11/01/08 $ 35 $ 35
6.000%, 05/01/08 752 745
5.500%, 11/01/08 844 823
GNMA
7.000%, 08/15/25 499 505
9.000%, 10/15/19 221 234
7.500%, 12/15/22 749 771
-------
Total U.S. Government Mortgage-
Backed Bonds
(Cost $3,095,750) 3,113
-------
Corporate Obligations-8.4%
Bell Atlantic
5.470%, 04/27/98 500 498
Bellsouth
7.000%, 02/01/05 500 534
Coca Cola
6.000%, 07/15/03 1,000 1,001
Dayton Hudson
8.500%, 12/01/22 500 541
First Bank System
6.880%, 09/15/07 500 521
Ford Motor Credit
6.380%, 04/15/00 500 507
6.250%, 11/08/00 500 505
7.500%, 01/15/03 1,000 1,071
Merrill Lynch
7.000%, 04/27/08 250 262
U.S. Bancorp
6.750%, 10/15/05 500 513
-------
Total Corporate Obligations
(Cost $5,739,927) 5,953
-------
Repurchase Agreements-9.3%
Aubrey Lanston 5.875%, dated
12/29/95, matures 01/02/96,
repurchase price $1,660,082
(collateralized by U.S. Treasury
Note, par value $1,570,000, 8.75%,
matures 10/15/97: market
value $1,722,931) 1,659 1,659
Nations 5.92%, dated 12/29/95,
matures 01/02/96, repurchase
price $1,660,911 (collateralized
by U.S. Treasury Note, par
value $1,650,000, 6.125%,
matures 05/15/98: market
value $1,708,972) 1,659 1,659
Repurchase Agreements (continued)
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Sanwa Bank 5.85%, dated 12/29/95,
matures 01/02/96, repurchase price
$1,659,078 (collateralized by U.S.
Treasury Note, par value $1,655,000,
5.75%, matures 10/31/00: market
value $1,707,854) $1,658 $ 1,658
Swiss Bank 5.85%,
dated 12/29/95, matures 01/02/96,
repurchase price $1,660,078
(collateralized by U.S. Treasury
Note, par value $1,600,000, 6.00%,
matures 08/31/97: market value $1,685,456) 1,659 1,659
-------
Total Repurchase Agreements
(Cost $6,635,000) 6,635
-------
Total Investments-102.2%
(Cost $61,886,263) 72,539
-------
Other Assets, Less Liabilities, Net-(2.2)% (1,569)
-------
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 100 million
authorized) based on 5,623,742
outstanding shares 57,622
Portfolio Shares - Series B ($0.001
par value - 100 million authorized)
based on 221,305 outstanding shares 2,271
Accumulated Net Realized Gain on
Investments 413
Net Unrealized Appreciation on
Investments 10,653
Undistributed in Excess of Net
Investment Income 11
-------
Total Net Assets-100% $70,970
=======
Net Asset Value & Redemption Price
Per Share
Series A $12.14
=======
Series B $12.14
=======
* Non-income producing security
ADR - American Depository Receipts
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Assocation
See accompanying notes to financial statement.
42
<PAGE>
For the six-month period ended December 31, 1995 (unaudited)
Statement of Operations (000) / / CoreFund Equity Funds
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------- ------- ------- ------- -------
Growth Value Equity International Balanced
Equity Fund Equity Fund Index Fund Growth Fund Fund
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends $ 596 $ 296 $ 1,455 $ 1,189 $ 464
Interest 143 10 16 45 771
Less: Foreign taxes withheld - - - (138) -
------- ------- ------- ------- -------
Total investment income 739 306 1,471 1,096 1,235
------- ------- ------- ------- -------
Expenses:
Investment advisory fees 381 44 245 462 236
Waiver of investment advisory fees (89) (16) (180) (19) (59)
Administrative fees 127 132 153 144 85
Waiver of administrative fees (46) (17) (55) (52) (30)
Transfer agent fees & expenses 15 5 16 22 9
Custodian fees -- -- -- 82 --
Professional fees 9 3 10 5 6
Registration & filing fees 14 2 24 9 4
Organizational costs -- -- -- -- 3
12b-1 fees 3 5 -- 2 3
Taxes--other than income 1 2 1 3 5
Printing fees 2 1 1 6 1
Miscellaneous 16 2 16 14 9
------- ------- ------- ------- -------
Total expenses 433 163 231 678 272
------- ------- ------- ------- -------
Net investment income 306 143 1,240 418 963
------- ------- ------- ------- -------
Net realized and unrealized gain (loss)
on investments, forward foreign
currency contracts and foreign
currency:
Net realized gain from
security transactions 5,934 3,168 3,673 3,261 1,643
Net realized gain on forward foreign
currency contracts and foreign
currency transactions -- -- -- 904 --
Net unrealized depreciation on
forward foreign currency
contracts and translation of assets
and liabilities in foreign currency -- -- -- (108) --
Net unrealized appreciation
(depreciation) on investments 6,808 (1,624) 11,211 5,150 5,417
------- ------- ------- ------- -------
Net realized and unrealized gain
on investments, forward foreign
currency contracts and
foreign currency 12,742 1,544 14,884 9,207 7,060
------- ------- ------- ------- -------
Net increase in net assets
resulting from operations $13,048 $ 1,687 $16,124 $ 9,625 $ 8,023
======= ======= ======= ======= =======
Computation of net asset value and offering price--December 31, 1995:
Series A
(1) Net asset value, offering and
redemption price $ 12.37 $ 12.91 $ 26.12 $ 13.01 $ 12.14
==== ==== ==== ==== ====
Series B
(1) Net asset value, redemption price 12.35 12.92 13.01 12.14
(2) Maximum sales charge of 3.25% 0.41 0.43 .44 0.41
---- ---- ---- ----
Offering price $ 12.76 $ 13.35 $ 13.45 $ 12.55
==== ==== ==== ====
</TABLE>
1 Net asset value per share, as illustrated, is the amount which would be paid
upon the redemption or repurchase of shares.
2 The offer price is calculated by dividing the net asset value of Series B
by 1 minus the maximum sales charge of 3.25%.
See accompanying notes to financial statements.
43
<PAGE>
For the six-month period ended December 31, 1995 (unaudited)
and for the year-ended June 30, 1995
STATEMENT OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
Growth
Equity Fund
----------------
7/1/95 7/1/94
to to
12/31/95 6/30/95
-------- -------
<S> <C> <C>
OPERATIONS:
Net Investment income $ 306 $ 645
Net realized gain from
security transactions 5,934 308
Net realized gain on
forward foreign
currency contracts and
foreign currency
transactions -- --
Net unrealized apprecia-
tion on forward foreign
currency contracts and
translation of assets
and liabilities in
foreign currencies -- --
Net unrealized apprecia-
tion (depreciation)
on investments 6,808 16,243
------- --------
Net increase(decrease)
in net assets result-
ing from operations 13,048 17,196
-------- --------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Series A (310) (632)
Series B (4) (10)
Net realized gains:
Series A (2,809) --
Series B (62) --
-------- -------
Total dividends
distributed (3,185) (642)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Series A
Proceeds from shares
issued 10,066 28,885
Reinvestment of cash
distributions 2,922 528
Cost of shares redeemed (11,693) (19,116)
-------- --------
Increase in net assets
from Series A
transactions 1,295 10,297
-------- --------
Series B:
Proceeds from shares
issued 391 280
Reinvestment of cash
distributions 69 9
Cost of shares redeemed (421) (359)
-------- -------
Increase(decrease) in
net assets from
Series B transactions 39 (70)
-------- -------
Increase(decrease) in net
assets derived from
capital share transaction 1,334 10,227
-------- -------
Net increase in
net assets 11,197 26,781
-------- -------
NET ASSETS:
Beginning of period 93,388 66,607
-------- -------
End of period $104,585 $93,388
======== =======
CAPITAL SHARE TRANSACTIONS:
Capital shares outstanding
at beginning of period 8,354 7,309
-------- -------
Series A:
Shares issued 824 2,945
Shares issued in lieu
of cash distributions 241 54
Shares redeemed (965) (1,947)
-------- --------
Total Series A
transactions 100 1,052
-------- --------
Series B:
Shares issued 32 29
Shares issued in lieu
of cash distributions 6 1
Shares redeemed (35) (37)
-------- -------
Total Series B
transactions 3 (7)
-------- -------
Increase(decrease) in capital
share transactions 103 1,045
-------- -------
Capital shares outstanding
at end of period 8,457 8,354
======== =======
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
/ / CoreFund Equity Funds
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY INTERNATIONAL BALANCED
EQUITY FUND INDEX FUND GROWTH FUND FUND
------------------- ------------------- ------------------ -----------------
7/1/95 7/1/94 7/1/95 7/1/94 7/1/95 7/1/94 7/1/95 7/1/94
to to to to to to to to
12/31/95 6/30/95 12/31/95 6/30/95 12/31/95 6/30/95 12/31/95 6/30/95
-------- -------- -------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net Investment income $ 143 $ 364 $ 1,240 $ 3,527 $ 418 $ 1,115 $ 963 $ (155)
Net realized gain from
security transactions 3,168 2,110 3,673 2,147 3,261 1,400 1,643 1,872
Net realized gain on
forward foreign
currency contracts and
foreign currency
transactions. -- -- -- -- 904 (351) -- --
Net unrealized apprecia-
tion on forward foreign
currency contracts and
translation of assets
and liabilities in
foreign currencies -- -- -- -- (108) 1,178 -- --
Net unrealized apprecia-
tion (depreciation)
on investments (1,624) 2,869 11,211 14,303 5,150 (3,861) 5,417 6,794
-------- -------- --------- ------- ------- ------- ------- -------
Net increase(decrease)
in net assets result-
ing from operations 1,687 5,343 16,124 19,977 9,625 (519) 8,023 8,511
--------- --------- -------- ------- ------- -------- ------- ------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Series A (135) (321) (1,241) (2,147) (2,440) (373) (921) (1,799)
Series B (8) (39) -- -- (38) (3) (33) (71)
Net realized gains:
Series A (4,156) (611) (3,835) (3,652) (548) (7,009) (840) (171)
Series B (361) (104) -- -- (10) (129) (33) (8)
-------- -------- ------- ------- -------- ------- ------ --------
Total dividends
distributed (4,660) (1,075) (5,076) (5,799) (3,036) (7,514) (1,827) (2,049)
---------- --------- ------- ------- -------- -------- --------- -------
CAPITAL SHARE TRANSACTIONS:
Series A
Proceeds from shares
issued 797 5,102 20,295 31,601 3,041 16,395 6,819 19,859
Reinvestment of cash
distributions 4,201 889 5,438 5,180 503 6,850 2,077 1,818
Cost of shares redeemed (2,182) (4,118) (11,984) (10,958) (8,932) (13,444) (7,671) (9,222)
---------- ---------- -------- ------- -------- -------- ------- -------
Increase in net assets
from Series A
transactions 2,816 1,873 13,749 25,823 (5,388) 9,801 1,225 12,455
--------- ----------- ------- ------- --------- ------- ------- -------
Series B:
Proceeds from shares
issued 81 345 -- -- 193 440 176 216
Reinvestment of cash
distributions 376 139 -- -- 9 129 80 79
Cost of shares redeemed (1,234) (2,099) -- -- (286) (486) (143) (427)
---------- ---------- ------- ------- ------- ------- ------- -------
Increase(decrease) in
net assets from
Series B transactions (777) (1,615) -- -- (84) 83 113 (132)
---------- --------- -------- ------ -------- ------- ------ ------
Increase(decrease) in net
assets derived from
capital share transaction 2,039 258 13,749 25,823 (5,472) 9,884 1,338 12,323
----------- --------- ------- ------- --------- ------ ----- -------
Net increase in
net assets (934) 4,526 24,797 40,001 1,117 1,851 7,534 18,785
---------- --------- ------- ------ --------- ------- ------- ------
NET ASSETS:
Beginning of period 34,711 30,185 112,553 72,552 112,781 110,930 63,436 44,651
---------- ---------- ------- ------- ------- ------- ------ -------
End of period $33,777 $34,711 $137,350 $112,553 $113,898 $112,781 $70,970 $63,436
========= ========= ======== ======== ======== ======== ======== =======
CAPITAL SHARE TRANSACTIONS:
Capital shares outstanding
at beginning of period 2,433 2,399 4,732 3,532 9,180 8,414 6,737 4,520
--------- --------- ------ ------- ------- -------- ------- ------
Series A:
Shares issued 55 390 794 1,461 236 1,282 579 1,956
Shares issued in lieu
of cash distributions 322 71 211 254 38 567 177 182
Shares redeemed (143) (311) (478) (515) (696) (1,088) (657) (908)
--------- --------- ------ ------ ------ ------- ------ -------
Total Series A
transactions 234 150 527 1,200 (422) 761 99 1,230
--------- --------- ------ ------ ------ ------ ------ ------
Series B:
Shares issued 6 27 -- -- 15 34 15 21
Shares issued in lieu
of cash distributions 29 11 -- -- 1 11 6 8
Shares redeemed (84) (154) -- -- (22) (40) (12) (42)
---------- -------- ------- ------ ------ ------ ----- -----
Total Series B
transactions (49) (116) -- -- (6) 5 9 (13)
----------- -------- -------- ----- ------ ------ ----- -----
Increase(decrease) in capital
share transactions 185 34 527 1,200 (428) 766 108 1,217
--------- -------- ------- ------ ------- ------ ------ ------
Capital shares outstanding
at end of period 2,617 2,433 5,259 4,732 8,752 9,180 5,845 5,737
======== ========= ======= ====== ====== ======= ===== =======
</TABLE>
45
<PAGE>
For the six-month period ended December 31, 1995 (unaudited) and the
periods ended June 30,
Financial Highlights / / CoreFund Equity Funds
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Realized
and
Net Asset Unrealized Distri- Distri-
Value Gains or butions butions Net Asset
Beginning Net (Losses) from Net from Value
Growth of Investment on Investment Capital End of Total
Equity Period Income Securities Income Gains Period Return (6)
- --------- ------ ------ -------- ------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Series A
1995** $11.18 $0.04 $1.54 $(0.04) $(0.35) $12.37 14.14%+
1995 9.11 0.08 2.07 (0.08) - 11.18 23.71
1994 9.95 0.05 (0.84) (0.05) - 9.11 (8.01)
1993 8.74 0.08 1.21 (0.08) - 9.95 14.76
1992(1) 10.00 0.05 (1.26) (0.05) - 8.74 (12.05)+
Series B
1995** $11.17 $0.02 $1.53 $(0.02) $(0.35) $12.35 13.93%+
1995 9.10 0.06 2.07 (0.06) - 11.17 23.44
1994 9.95 0.04 (0.85) (0.04) - 9.10 (8.13)
1993* 9.80 0.03 0.15 (0.03) - 9.95 1.80+
Value Equity
Series A
1995** $14.27 $0.06 $0.63 $(0.06) $(1.99) $12.91 5.02%+
1995 12.58 0.15 1.97 (0.15) (0.28) 14.27 17.29
1994 13.11 0.09 (0.27) (0.09) (0.26) 12.58 (1.51)
1993 11.22 0.16 1.89 (0.16) - 13.11 18.31
1992 10.33 0.15 0.89 (0.15) - 11.22 9.98
1991 10.31 0.15 0.18 (0.15) (0.16) 10.33 3.37
1990(2) 10.00 0.10 0.31 (0.10) - 10.31 4.10+
Series B
1995** $14.29 $0.05 $0.60 $(0.04) $(1.99) $12.92 4.80%+
1995 12.60 0.13 1.96 (0.12) (0.28) 14.29 16.96
1994 13.12 0.06 (0.26) (0.06) (0.26) 12.60 (1.69)
1993* 12.49 0.05 0.67 (0.09) - 13.12 5.77
Equity Index
Series A
1995** $23.79 $0.26 $3.12 $(0.26) $(0.79) $26.12 14.27%+
1995 20.54 0.52 4.24 (0.52) (0.99) 23.79 24.45
1994 20.97 0.55 (0.43) (0.55) - 20.54 0.55
1993 19.22 0.52 1.84 (0.52) (0.09) 20.97 12.39
1992 18.46 0.52 1.80 (0.48) (1.08) 19.22 12.59
1991(3) 19.48 0.03 (0.94) (0.02) (0.09) 18.46 (4.64)+
International Growth
Series A
1995** $12.29 $0.05 $1.02 $(0.29) $(0.06) $13.01 8.69%+
1995 13.18 0.12 (0.17) (0.04) (0.80) 12.29 (0.21)
1994 11.71 0.12 1.78 (0.12) (0.31) 13.18 16.28
1993 10.52 0.10 1.16 (0.07) - 11.71 12.06
1992 10.10 0.17 0.31 - (0.06) 10.52 4.90
1991 10.75 0.19 (0.44) (0.27) (0.13) 10.10 (2.71)
1990(4) 10.00 0.11 0.86 (0.09) (0.13) 10.75 9.74+
Series B
1995** $12.27 $0.03 $1.02 $(0.25) $(0.06) $13.01 8.61%
1995 13.17 0.09 (0.17) (0.02) (0.80) 12.27 (0.48)
1994 11.71 0.06 1.82 (0.11) (0.31) 13.17 16.08
1993* 10.07 0.05 1.59 - - 11.71 16.29
Balanced
Series A
1995** $11.06 $0.17 $1.23 $(0.17) $(0.15) $12.14 12.66%+
1995 9.88 0.35 1.21 (0.35) (0.03) 11.06 16.21
1994 10.39 0.35 (0.51) (0.35) - 9.88 (1.62)
1993(5) 10.00 0.16 0.39 (0.16) - 10.39 5.52+
Series B
1995** $11.06 $0.15 $1.23 $(0.15) $(0.15) $12.14 12.53%
1995 9.89 0.34 1.19 (0.33) (0.03) 11.06 15.84
1994 10.38 0.31 (0.49) (0.31) - 9.89 (1.86)
1993* 10.00 0.16 0.38 (0.16) - 10.38 2.50+
</TABLE>
<TABLE>
<CAPTION>
Ratio
Ratio of Net
Ratio of of Net Ratio of Income
Net Expenses Income Expenses (Loss) Port-
Assets to to to Average to Average folio
End Average Average Net Assets Net Assets Turn-
Growth of Period Net Net (Excluding (Excluding over
Equity (000) Assets Assets Waivers) Waivers) Rate
- --------- -------- ------ ------ --------- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
Series A
1995** $102,288 0.84% 0.61% 1.11% 0.34% 43%
1995 91,345 0.76 0.84 1.10 0.50 113
1994 64,877 0.69 0.48 1.11 0.06 127
1993 63,777 0.43 0.85 1.11 0.17 103
1992(1) 33,418 0.14 1.38 1.12 0.40 66
Series B
1995** $ 2,297 1.09% 0.36% 1.36% 0.09% 43%
1995 2,043 1.01 0.59 1.35 0.25 113
1994 1,730 0.94 0.23 1.36 (0.19) 127
1993* 5,224 0.80 0.39 1.48 (0.29) 103
Value Equity
Series A
1995** $ 31,055 0.90% 0.84% 1.09% 0.65% 105%
1995 31,003 0.86 1.12 1.10 0.88 108
1994 25,448 0.80 0.73 1.09 0.44 78
1993 15,397 0.71 1.29 1.18 0.82 97
1992 10,882 0.99 1.36 1.63 0.72 117
1991 5,182 1.74 1.53 2.39 0.88 96
1990(2) 5,154 1.76 2.35 2.43 1.68 20
Series B
1995** $ 2,722 1.15% 0.59% 1.34% 0.40% 105%
1995 3,708 1.11 0.89 1.35 0.65 108
1994 4,737 1.05 0.48 1.34 0.19 78
1993* 714 0.85 0.97 1.32 0.50 97
Equity Index
Series A
1995** $137,350 0.37% 2.02% 0.76% 1.63% 11%
1995 112,533 0.37 2.48 0.76 2.09 27
1994 72,552 0.35 2.63 0.75 2.23 13
1993 50,551 0.49 2.82 0.88 2.43 4
1992 20,166 0.57 2.66 1.06 2.17 27
1991(3) 12,117 0.97 1.79 1.20 1.56 -
International
Series A
1995** $111,921 1.17% 0.73% 1.29% 0.61% 15%
1995 110,838 1.05 0.98 1.19 0.84 59
1994 108,911 0.99 0.23 1.18 0.04 67
1993 61,655 0.99 1.22 1.28 0.93 59
1992 42,594 0.96 1.67 1.40 1.23 87
1991 20,582 0.99 1.80 1.56 1.23 49
1990(4) 13,513 1.22 2.57 1.99 1.80 20
Series B
1995** $ 1,977 1.42% 0.48% 1.54% 0.36% 15%
1995 1,943 1.30 0.73 1.44 0.59 59
1994 2,019 1.24 0.05 1.43 (0.14) 67
1993* 344 1.15 1.51 1.44 1.22 59
Balanced
Series A
1995** $ 68,283 0.80% 2.85% 1.06% 2.59% 32%
1995 61,092 0.73 3.51 1.07 3.17 46
1994 42,429 0.62 3.46 1.08 3.00 56
19935 29,434 0.45 3.38 1.39 2.45 21
Series B
1995** $ 2,687 1.05% 2.60% 1.31% 2.34% 32%
1995 2,344 0.98% 3.27 1.32 2.93 46
1994 2,222 0.87 3.21 1.33 2.75 56
1993* 701 0.55 5.76 1.48 4.83 21
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* Series B has been offered since January 4, 1993. Balanced has offered
Series B since March 16, 1993.
** Ratios for the six-month period ended December 31, 1995, have been
annualized.
(1) Growth Equity commenced operations on February 3, 1992. All ratios for
the period have been annualized.
(2) Value Equity commenced operations on Februar 6, 1990. All ratios for
the period have been annualized.
(3) Equity Index commenced operations on June 1, 1991. All ratios for the
period have been annualized.
(4) International Growth commenced operations on February 12, 1990. All
ratios for the period have been annualized.
(5) Balanced commenced operations on January 4, 1993. All ratios for the
period have been annualized.
(6) Total return does not reflect the sales loads charged on the Series B
shares.
See accompanying notes to financial statements.
46
<PAGE>
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets / / CoreFund Fixed Income Funds
- --------------------------------------------------------------------------------
Government Income Fund
[GRAPHIC 25]
[SEE APPENDIX A FOR DESCRIPTION]
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. Government Mortgage-Backed
Bonds -- 65.8%
GNMA
8.000%, 09/15/09 $ 920 $ 960
8.000%, 02/15/22 413 431
8.000%, 09/15/22 60 63
8.000%, 10/15/22 298 311
8.000%, 11/15/22 505 526
7.000%, 04/15/23 409 414
7.500%, 08/15/23 1,48 1,526
6.500%, 11/15/23 491 487
6.500%, 12/15/23 1,976 1,961
7.000%, 01/15/24 976 987
8.000%, 05/15/25 1,007 1,049
6.500%, 12/15/25 1,010 1,003
-----
Total U.S. Government Mortgage-
Backed Bonds
(Cost $9,497,381) 9,718
-----
U.S. Agency Mortgage-Backed
Bonds -- 8.3%
FHLMC
6.000%, 05/01/08 397 393
FNMA
7.000%, 10/01/22 825 832
-----
Total U.S. Agency Mortgage-
Backed Bonds
(Cost $1,228,338) 1,225
-----
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations -- 22.8%
U.S. Treasury Bonds
5.500%, 12/31/00 $ 500 $ 502
6.880%, 08/15/25 1,150 1,297
U.S. Treasury Notes
6.250%, 05/31/00 500 517
6.250%, 08/31/00 500 517
6.500%, 08/15/05 500 533
-----
Total U.S. Treasury Obligations
(Cost $3,255,978) 3,366
-----
Repurchase Agreements -- 4.2%
Sanwa Bank, 5.85%, dated
12/29/95, matures 01/02/96,
repurchase price $627,408
(collateralized by U.S. Treasury
Note, par value $625,000,
5.75%, matures 10/31/00:
market value $644,960) 627 627
-----
Total Repurchase Agreements
(Cost $627,000) 627
-----
Total Investments -- 101.1%
(Cost $14,608,698) 14,936
-----
Total Other Assets and Liabilities,
Net -- (1.1)% (166)
-----
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 100 million
authorized) based on
1,329,745 outstanding shares 13,276
Portfolio Shares - Series B
($0.001 par value - 100 million
authorized) based on 133,082
outstanding shares 1,362
Accumulated Net Realized Loss on
Investments (195)
Net Unrealized Appreciation on
Investments 327
-----
Total Net Assets -- 100% $14,770
------
------
Net Asset Value & Redemption Price
Per Share
Series A $10.10
------
------
Series B $10.10
------
------
FHLMA - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
See accompanying notes to financial statements.
47
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- --------------------------------------------------------------------------------
Intermediate Bond Fund
[GRAPHIC 26]
[SEE APPENDIX A FOR DESCRIPTION]
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations -- 41.4%
U.S. Treasury Bond
5.500%, 12/31/00 $4,450 $ 4,468
U.S. Treasury Notes
6.000%, 08/31/97 3,500 3,543
7.380%, 11/15/97 4,000 4,150
5.500%, 11/15/98 3,000 3,020
6.000%, 10/15/99 2,200 2,252
6.250%, 05/31/00 1,000 1,034
6.130%, 09/30/00 2,000 2,060
6.500%, 08/15/05 3,000 3,197
-----
Total U.S. Treasury Obligations
(Cost $23,302,597) 23,724
-----
U.S. Government Mortgage-Backed
Bonds -- 3.3%
GNMA
9.500%, 09/15/16 856 92
9.500%, 12/15/16 56 60
9.500%, 06/15/20 74 80
8.000%, 07/15/22 605 630
8.000%, 05/15/25 967 1,008
-----
Total U.S. Government Mortgage-
Backed Bonds
(Cost $1,808,681) 1,870
-----
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. Agency Mortgage-Backed
Bonds -- 4.6%
FHLMC
5.500%, 11/01/08 $2,196 $ 2,141
FNMA
8.000%, 04/01/07 493 510
-----
Total U.S. Agency Mortgage-Backed
Bonds
(Cost $2,675,722) 2,651
-----
Non-Agency Mortgage-Backed
Bond -- 2.6%
Advanta, Ser 93-3, CMO
4.900%, 10/25/09 1,593 1,518
-----
Total Non-Agency Mortgage-Backed
Bond
(Cost $1,592,299) 1,518
-----
Corporate Obligations -- 15.5%
Associates Corporation of
North America
4.730%, 05/06/96 1,000 997
6.380%, 08/15/98 1,500 1,528
Dean Witter Discover
6.000%, 03/01/98 1,250 1,258
Ford Motor Credit
6.800%, 08/15/97 1,000 1,019
John Deere Capital
4.630%, 09/02/96 1,500 1,491
Norwest Financial
6.250%, 02/15/97 1,500 1,513
Province of Ontario
7.000%, 08/04/05 1,000 1,065
-----
Total Corporate Obligations
(Cost $8,704,578) 8,871
-----
Asset-Backed Securities -- 25.2%
American Express Master Trust
7.150%, 08/15/99 1,000 1,040
Case Equipment Loan Trust,
Ser 95-B A2
5.950%, 09/15/00 1,000 1,012
Daimler-Benz Grantor Trust,
Ser 93-A A
3.900%, 10/15/98 517 509
48
See accompanying notes to financial statements.
<PAGE>
/ / CoreFund Fixed Income Funds
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Asset-Backed Securities, (continued)
Discover Card Master Trust I,
Ser 94-3 A (A)
6.130%, 04/16/02 $2,000 $ 2,002
Ford Credit Grantor Trust,
Ser 94-A A
6.350%, 05/15/99 1,133 1,142
Nationsbank Credit Card Master
Trust, Ser 93-1A
4.750%, 09/15/98 1,500 1,490
Premier Auto Trust, Ser 95-1
A4 7.850%, 02/04/98 2,000 2,067
Sears Credit Account Master
Trust, Ser 95-3 A
7.000%, 10/15/04 3,000 3,149
Standard Credit Card Master
Trust, Ser 95-6 A
6.750%, 06/07/00 2,000 2,059
-----
Total Asset-Backed Securities
(Cost $14,115,562) 14,470
-----
Repurchase Agreements -- 16.0%
Aubrey Lanston 5.875%,
dated 12/29/95, matures
1/02/96, repurchase price
$3,051,991 (collateralized
by U.S. Treasury Note, par
value $2,890,000, 8.75%
matures 10/15/97:
market value $3,171,510) 3,050 3,050
Goldman Sachs 5.83%, dated
12/29/95, matures 1/02/96,
repurchase price $3,051,976
(collateralized by U.S.
Treasury Note, par value
$2,725,000, 7.875%,
matures 8/15/01:
market value $3,200,325) 3,050 3,050
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreements (continued)
Sanwa Bank 5.85%, dated
12/29/95, matures
1/02/96, repurchase
price $3,051,983
(collateralized by U.S.
Treasury Note, par value
$3,250,000, 5.75%,
matures 10/31/00:
market value $3,142,245) $3,050 $ 3,050
-----
Total Repurchase Agreements
(Cost $9,150,000) 9,150
-----
Total Investments -- 108.6%
(Cost $61,388,439) 62,254
-----
Total Other Assets and Liabilities,
Net -- (8.6)% (4,912)
-----
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 100 million
authorized) based on 5,544,433
outstanding shares 55,359
Portfolio Shares - Series B
($0.001 par value - 100 million
authorized) based on
205,809 outstanding shares 2,593
Accumulated Net Realized Loss on
Investments (1,474)
Net Unrealized Appreciation on
Investments 866
Distributions in Excess of Net
Investment Income (2)
-----
Total Net Assets -- 100% $57,342
-----
-----
Net Asset Value & Redemption Price
Per Share
Series A $9.97
----
----
Series B $9.97
----
----
(A) Variable Rate Security - The rate reported on the Statement of Net Assets
is the rate in effect on December 31, 1995.
CMO - Collateralized Mortgage Obligation
FHLMA - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
See accompanying notes to financial statements.
49
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- --------------------------------------------------------------------------------
Intermediate Municipal Bond Fund
[GRAPHIC 27]
[SEE APPENDIX A FOR DESCRIPTION]
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Municipal Bonds -- 96.8%
Florida -- 4.1%
Jacksonville, Florida Electric
Authority Revenue Bond,
Series 3-A
5.200%, 10/01/02 $ 50 $ 52
-----
Georgia -- 4.2%
De Kalb County, Georgia Health
Facilities Bond, GO
5.300%, 01/01/03 50 53
-----
Hawaii -- 4.1%
Hawaii State, GO
5.200%, 06/01/04 50 52
-----
Maryland -- 4.1%
Maryland State Health & Higher
Education Facilities Authority for
Johns Hopkins Project
5.125%, 07/01/03 50 52
-----
Massachusetts -- 4.1%
Massachusetts Bay Transportation
Authority Revenue Bond, Series A
5.300%, 03/01/05 $ 50 $ 52
-----
Michigan -- 8.0%
Grand Haven, Michigan Electric
Revenue Bond (MBIA)
5.000%, 07/01/04 100 102
-----
New Jersey -- 4.1%
Burlington County, New Jersey
Community Bridge Systems
Revenue Bond, Callable
10/01/03 at 101 (CG)
5.050%, 10/01/04 50 52
-----
Pennsylvania -- 56.4%
Allegheny County, Pennsylvania,
Series C-33, GO
7.450%, 02/15/98 50 53
Allegheny County, Pennsylvania
Community College Project,
Series A
4.380%, 07/15/02 100 95
Bethlehem, Pennsylvania School
District GO (FGIC)
4.800%, 09/01/01 50 51
Governor Mifflin, Pennsylvania
School District, GO (AMBAC)
4.850%, 11/15/01 50 51
Luzerne County, Pennsylvania,
Series A, GO, Callable 09/15/00
at 100 (FGIC)
5.850%, 09/15/02 50 53
Pennsylvania State Higher
Education Facilities Authority
Hospital Revenue Bond for
Thomas Jefferson University
Project, Pre-Refunded
01/01/98 at 102
8.000%, 01/01/18 85 93
50
See accompanying notes to financial statements.
<PAGE>
/ / CoreFund Fixed Income Funds
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Pennsylvania (continued)
Pennsylvania State Turnpike
Commission Revenue Bond,
Pre-Refunded 12/01/99 at
102 (AMBAC)
7.250%, 12/01/17 $ 50 $ 56
Pennsylvania State Turnpike
Commission Revenue Bond,
Series 1, Pre-Refunded 12/01/01
at 102 (FGIC)
7.150%, 12/01/11 50 58
Pittsburgh, Pennsylvania School
District, Series A, GO (FGIC)
4.850%, 09/01/03 100 101
Reading, Pennsylvania Parking
Authority (MBIA)
4.950%, 11/15/02 50 51
Wallenpaupack, Pennsylvania Area
School District, Series C, GO,
Callable 09/01/00 at 100 (FGIC)
6.000%, 09/01/03 50 53
-----
715
-----
Tennesse -- 4.1%
Tennessee State, Series B, GO
5.900%, 06/01/98 50 52
-----
Wisconsin -- 3.6%
Wisconsin State Transportation,
Series A
5.000%, 07/01/01 45 46
-----
Total Municipal Bonds
(Cost $1,208,562) 1,228
-----
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Total Investments -- 96.8%
(Cost $1,208,562) $1,228
-----
Total Other Assets and Liabilities,
Net -- 3.2% 40
-----
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 100 million
authorized) based on
23,329 outstanding shares 270
Portfolio Shares - Series B
($0.001 par value - 100 million
authorized) based on 102,135
outstanding shares 1,056
Accumulated Net Realized Loss on
Investments (78)
Net Unrealized Appreciation on
Investments 20
-----
Total Net Assets -- 100% $1,268
-----
-----
Net Asset Value & Redemption Price
Per Share
Series A $10.11
-----
-----
Series B $10.10
-----
-----
GO -- General Obligation
(AMBAC) American Municipal Bond Assurance Company
(CG) County Guaranty
(FGIC) Financial Guaranty Insurance Company
(MBIA) Municipal Bond Investors Assurance
See accompanying notes to financial statements.
51
<PAGE>
<PAGE>
As of December 31, 1995 (Unaudited)
Schedule of Investments / / CoreFund Fixed Income Funds
- -------------------------------------------------------------------------------
Global Bond Fund
[GRAPHIC 28]
{See Appendix A for Description]
- -------------------------------------------------------------------------------
Description Par (000)(1) Value (000)
- -------------------------------------------------------------------------------
Foreign Bonds -- 68.3%
Australia -- 5.0%
Australian Government
9.000%, 09/15/04 2,150 $ 1,682
-------
Denmark -- 9.8%
Kingdom of Denmark
8.000%, 05/15/03 10,958 2,100
8.000%, 03/15/06 6,100 1,159
-------
3,259
-------
France -- 15.0%
Electric de France
7.500%, 05/11/12 5,950 1,259
Government of France OAT
7.500%, 04/25/05 8,028 1,739
Kansai Electric Power
7.000%, 08/04/03 2,700 565
Republic of Portugal
7.700%, 06/07/05 6,910 1,490
-------
5,053
-------
Germany -- 15.8%
Bundesrepublic
7.375%, 01/03/05 5,765 4,381
Deutschland Republic
6.250%, 01/04/24 450 293
- -------------------------------------------------------------------------------
Description Par (000)(1) Value (000)
- -------------------------------------------------------------------------------
Germany continued
World Bank
7.125%, 04/12/05 800 $ 593
-------
5,267
-------
Ireland -- 1.9%
Government of Ireland
9.250%, 07/11/03 356 635
-------
Netherlands -- 5.0%
Kingdom of Netherlands
8.250%, 09/15/07 2,096 1,519
7.500%, 01/15/23 215 147
-------
1,666
-------
New Zealand -- 4.7%
Government of New Zealand
10.000%, 07/15/97 2,329 1,564
-------
Sweden -- 2.1%
Government of Sweden Treasury Note
11.000%, 01/21/99 4,300 698
-------
United Kingdom -- 9.0%
European Investment Bank
10.375%, 11/22/04 860 1,527
United Kingdom Conversion
9.500%, 04/18/05 835 1,471
-------
2,998
-------
Total Foreign Bonds
(Cost $21,272,511) 22,822
-------
U.S. Treasury Obligations -- 26.6%
U.S. Treasury Bill
3.770%, 01/25/96 4,200 4,189
U.S. Treasury Notes
6.125%, 05/31/97 1,790 1,812
6.875%, 07/31/99 1,180 1,239
7.750%, 11/30/99 1,510 1,637
-------
Total U.S. Treasury Obligations
(Cost $8,672,193) 8,877
-------
U.S Treasury Option 0.1%
U.S. Treasury Call
01/30/96 4,200 30
-------
Total U.S Treasury Option
(Cost $70,875) 30
-------
Total Investments -- 95.0%
(Cost $30,015,579) $31,729
=======
(1) In local currency unless otherwise indicated.
See accompanying notes to financial statements.
52
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets / / CoreFund Fixed Income Funds
- ---------------------------------
Pennsylvania Municipal Bond Fund
- ---------------------------------
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Municipal Bonds -- 97.4%
Pennsylvania -- 97.4%
Abington, Pennsylvania School
District GO (FGIC)
5.630%, 05/15/20 $100 $ 101
Allegheny County, Pennsylvania
Sanitation Authority Sewer
Revenue Bond, Series C - 43
09/15/04 at 100 (MBIA)
5.880%, 09/15/13 100 104
Allegheny County, Pennsylvania
Redevelopment Authority Home
Improvement Loan-Impac XIV-A,
Callable 02/01/04 at 102 (FHA)
5.700%, 02/01/07 15 15
Allegheny County, Pennsylvania
Sanitation Authority Sewer
Revenue Bond, Series B, Callable
06/01/99 at 100 (FGIC)
7.450%, 12/01/09 130 143
Allegheny County, Pennsylvania
Hospital Development Authority
Revenue Bond, Callable 11/01/02
at 102 (MBIA)
6.000%, 11/01/12 25 26
Allegheny County, Pennsylvania
Series C-43, GO, Callable 09/15/04
at 100 (MBIA)
5.880%, 09/15/10 60 63
Bedford, Pennsylvania, Bedford
Area School District, Series A, GO,
Callable 04/15/04 at 100 (MBIA)
6.200%, 04/15/24 25 26
Berks County, Pennsylvania Reading
Hospital & Medical Center Project
Revenue Bond, Series B, Callable
10/01/04 at 102 (MBIA)
5.600%, 10/01/06 65 68
Center City District, Pennsylvania
Business Improvement Assessment,
Callable 12/01/07 at 100 (AMBAC)
5.600%, 12/01/08 60 63
Chester County, Pennsylvania GO
5.630%, 11/15/16 100 101
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Pennsylvania (continued)
Crawford, Pennsylvania Central
School District, GO (FGIC)
7.000%, 02/15/05 $100 $ 117
Delaware County, Pennsylvania, GO
5.500%, 10/01/15 75 76
Dover Township, Pennsylvania
Sewer Authority Revenue Bond
6.250%, 05/01/12 20 22
Lehigh County, Pennsylvania
Industrial Development Authority
Pollution Control Revenue Bond
for Pennsylvania Power and Light
Project, Series A, Callable 11/01/02
at 102 (MBIA)
6.400%, 11/01/21 25 27
Lower Merion Township,
Pennsylvania, GO, Callable
08/01/02 at 100
5.630%, 08/01/05 100 106
Lower Salford Township,
Pennsylvania (MBIA)
5.500%, 11/15/20 100 100
Manheim, Pennsylvania, Manheim
Central School District, GO,
Callable 05/15/04 at 100 (FGIC)
6.100%, 05/15/14 100 105
North Penn, Pennsylvania Water
Authority Revenue Bond,
Callable 11/01/02 at 101 (FGIC)
6.200%, 11/01/22 25 26
North Wales, Pennsylvania Water
Authority Revenue Bond Callable
11/01/05 at 100 (FGIC)
5.600%, 11/01/20 20 20
North Wales, Pennsylvania (FGIC)
6.750%, 11/01/10 100 116
Pennsylvania State GO
6.000%, 07/01/05 25 27
Pennsylvania State Ser 2, GO
6.250%, 07/01/11 60 67
Pennsylvania State Industrial
Development Authority, (AMBAC)
6.000%, 01/01/12 100 105
See accompanying notes to financial statements.
53
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets / / CoreFund Fixed Income Funds
- -------------------------------------------------------------------------------
Pennsylvania Municipal Bond Fund (cont.)
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Pennsylvania, (continued)
Pennsylvania State Convention
Center Authority Revenue Bond,
Series A (FGIC)
6.700%, 09/01/16 $ 75 $ 89
Pennsylvania State Higher Education
Facilities Authority for Health
Services, Series A, Callable
01/01/04 at 102
6.000%, 01/01/10 100 107
Pennsylvania State Higher Education
Pennsylvania State University,
Callable 03/01/04 at 100
6.150%, 03/01/05 40 44
Pennsylvania State Higher Education
Thomas Jefferson University,
Series A, Callable 07/01/99 at 102
6.000%, 07/01/19 150 154
Pennsylvania State Housing Finance
Agency Finance Agency Revenue
Bond, Callable 07/01/02 at
102 (FNMA)
6.400%, 07/01/12 300 311
Pennsylvania State Industrial
Development Authority, (AMBAC)
6.000%, 01/01/05 25 27
Pennsylvania State Penn State
Higher Education Facilities
Authority for University of
Pennsylvania, Series B
5.850%, 09/01/13 100 105
Pennsylvania State Turnpike
Commission Revenue Bond,
Series O, Callable 12/01/02 at
102 (FGIC)
5.900%, 12/01/08 125 132
Pennsylvania State Turnpike
Commission RB, Series P
5.800%, 12/01/06 75 81
Pittsburgh, Pennsylvania, GO,
Series D, Callable 09/01/04
at 100 (AMBAC)
6.125%, 09/01/17 25 26
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Pennsylvania (continued)
Pittsburgh, Pennsylvania University
of Pittsburg Higher Education
University Capital Improvements,
Series A, Callable 06/01/02 at
102 (MBIA)
6.125%, 06/01/21 $115 $ 121
Seneca Valley, Pennsylvania GO (FGIC)
5.850%, 02/15/15 105 108
York, Pennsylvania, York City
School District, GO, Callable
03/01/03 at 100 (FGIC)
5.600%, 03/01/07 75 77
------
3,006
------
Total Municipal Bonds
(cost $2,825,538) 3,006
------
Total Investments -- 97.4%
(cost $2,825,538) 3,006
------
Total Other Assets and Liabilities,
Net -- 2.6% O1 81
------
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 100
million authorized) based on
270,617 outstanding shares 2,712
Portfolio Shares - Series B
($0.001 par value - 100
million authorized) based on
20,473 outstanding shares 200
Accumulated Net Realized Loss on
Investments (5)
Net Unrealized Appreciation on
Investments 180
------
Total Net Assets -- 100% $3,087
======
Net Asset Value & Redemption Price
Per Share
Series A $10.61
======
Series B $10.61
======
GO--General Obligation
RB--Revenue Bond
(AMBAC) American Municipal Bond Assurance Company
(FGIC) Federal Guaranty Insurance Company
(FHA) Federal Housing Authority
(MBIA) Municipal Bond Investors Assurance
See accompanying notes to financial statements.
54
<PAGE>
<PAGE>
Schedule of Investments / / CoreFund Fixed Income Funds
- ---------------------------------------
New Jersey Municipal Bond Fund
- ------------------------------------------------------------------
Description Par (000) Value (000)
- ------------------------------------------------------------------
Municipal Bonds -- 98.3%
New Jersey -- 98.3%
Atlantic County, New Jersey, GO,
(MBIA)
6.000%, 01/01/11 $ 55 $ 58
Bayonne, New Jersey, GO, (FGIC)
5.900%, 05/01/08 150 159
Cherry Hill Township, New Jersey,
GO, 5.900%, 06/01/05 50 54
Cinnaminson Township, New Jersey
Cinnaminson Township School
District GO, (MBIA)
5.800%, 07/15/05 55 59
Flemington-Raritan, New Jersey
Regional School District GO,
5.700%, 05/01/06 50 53
Gloucester County, New Jersey
Improvement Authority RB,
5.800%, 04/01/06 20 21
Marlboro Township, New Jersey GO
5.500%, 07/15/09 40 41
Mercer County, New Jersey
Improvement Authority RB
5.400%, 12/01/05 50 53
Millburn Township, New Jersey GO
5.350%, 07/15/12 100 103
Monmouth County, New Jersey
Improvement Authority RB
6.630%, 12/01/05 40 44
New Jersey Health Care Facilities,
Finance Authority RB
for Burlington County
6.000%, 07/01/12 50 54
New Jersey Health Care Facilities,
Finance Authority RB for
Bridgeton County
6.000%, 07/01/13 50 54
- ------------------------------------------------------------------
Description Par (000) Value (000)
- ------------------------------------------------------------------
New Jersey State, GO
5.500%, 02/15/04 $100 $106
New Jersey State Economic
Development Authority, Revenue
Bond for Rutgers State University
6.130%, 07/01/24 55 59
New Jersey State Economic
Development Authority for
Peddie School Project, Series A
5.400%, 02/01/06 50 52
New York & New Jersey States Port
Authority, Revenue Bond,
Eighty-First Series
5.700%, 08/01/07 50 53
New Jersey State Educational
Facilities Authority, Revenue Bond
for University of Medicine and
Dentistry, Ser B.
5.250%, 12/01/13 60 60
North Brunswick Township,
New Jersey
6.130%, 05/15/04 45 49
6.300%, 02/01/12 150 163
North Jersey District Water Supply
6.000%, 07/01/21 50 53
Secaucus, New Jersey
6.100%, 12/01/10 60 66
South Monmouth, New Jersey
Sewer Authority
5.550%, 01/15/06 50 53
Teaneck Township, New Jersey
5.750%, 07/01/13 55 57
West Windsor Township, New Jersey
6.100%, 12/01/12 50 54
Winslow Township, New Jersey
5.950%, 12/01/16 55 57
-------
1,635
-------
Total Municipal Bonds
(Cost $1,542,751) 1,635
-------
Total Investments -- 98.3%
(Cost $1,542,751) 1,635
=======
GO--General Obligation
RB--Revenue Bond
(AMBAC) American Municipal Bond Assurance Company
See accompanying notes to financial statements.
(CG) County Guaranty
(FGIC) Financial Guaranty Insurance Company
(MBIA) Municipal Bond Investors Assurance
55
<PAGE>
<TABLE>
As of December 31, 1995 (unaudited)
Statement of Assets and Liabilities (000)
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------
Global
Bond Fund
------------
<S> <C>
Assets:
Investments at Market Value (Cost $30,015,579) $31,729
Cash 1,301
Foreign Currency (Cost $195,337) 195
Receivable for Accrued Interest 1,076
Other Assets 12
--------
Total Assets 34,313
--------
Liabilities:
Income Distribution Payable 845
Other Liabilities 59
--------
Total Liabilities 904
--------
Net Assets:
Portfolio Shares--Series A ($.001 Par Value--25 million authorized) based on
3,356,865 outstanding shares 33,379
Portfolio Shares--Series B ($.001 Par Value--25 million authorized) based on
17,360 outstanding shares 173
Accumulated Net Realized Loss on Investments (1,252)
Accumulated Net Realized Loss on Foreign Currency Transactions (1,775)
Net Unrealized Depreciation on Foreign Currency and Translation of Other Assets and Liabilities
Denominated in Foreign Currencies (15)
Net Unrealized Appreciation on Investments 1,713
Undistributed Net Investment Income 1,186
--------
Total Net Assets $33,409
========
Net Asset Value and Redemption Price Per Share
Series A $ 9.90
========
Series B $ 9.89
========
</TABLE>
56
<PAGE>
<TABLE>
<CAPTION>
/ / CoreFund Fixed Income Funds
- --------------------------------------------------------------------------------------------------------------------
------------
New Jersey
Municipal
Bond Fund
------------
<S> <C>
Assets:
Investments at Market Value (Cost $1,542,751) $ 1,635
Cash 63
Receivable for Accrued Interest 28
Other Assets 11
--------
Total Assets 1,737
--------
Liabilities:
Payable for investment securities purchased 59
Other Liabilities 14
--------
Total Liabilities 73
--------
Net Assets:
Portfolio Shares--Series A ($0.001 Par Value -- 100 million authorized) based on 149,033
outstanding shares 1,474
Portfolio Shares--Series B ($0.001 Par Value -- 100 million authorized) based on 9,502
outstanding shares 98
Net Unrealized Appreciation on Investments 92
--------
Total Net Assets $ 1,664
========
Net Asset Value and Redemption Price Per Share
Series A $ 10.50
--------
Series B $ 10.49
========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
57
</TABLE>
<PAGE>
<TABLE>
For the six-month period ended December 31, 1995 (unaudited)
Statement of Operations (000)
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------- ------------
Government Intermediate
Income Fund Bond Fund
----------- ------------
<S> <C> <C>
Investment income
Interest $ 462 $1,861
------ ------
Expenses
Investment advisory fees 34 145
Waiver of investment advisory fees (16) (41)
Administrative fees 17 72
Waiver of administrative fees (6) (26)
Transfer agent fees & expenses 2 8
Custodian fees -- --
Professional fees 1 5
Registration & filing fees 10 --
Organizational costs 3 --
12b-1 fees 2 3
Taxes--other than income -- 5
Miscellaneous (7) 10
------ ------
Total expenses 40 181
------ ------
Net investment income 422 1,680
------ ------
Net realized and unrealized gain (loss) on investments, forward foreign
currency contracts and foreign currency:
Net realized gain (loss) from security transactions 65 455
Net realized gain on forward foreign currency contracts and foreign
currency transactions -- --
Net unrealized appreciation on forward foreign currency contracts, foreign
currencies and translation of other assets and liabilities in foreign currencies -- --
Net unrealized appreciation on investments 297 305
------ ------
Net realized and unrealized gain on investments, forward foreign currency contracts
and foreign currencies 362 760
------ ------
Net increase in net assets resulting from operations $ 784 $2,440
====== ======
Computation of net asset value and
offering price--December 31, 1995:
Series A:
Net asset value, offering and redemption price $10.10 $ 9.97
====== ======
Series B:
/1/Net asset value, redemption price 10.10 9.97
/2/Maximum sales charge 3.25% 0.34 0.33
------ ------
Offering Price $10.44 $10.30
====== ======
</TABLE>
/1/ Net asset value per share, as illustrated, is the amount which would be
paid upon the redemption or repurchase of shares.
/2/ The offer price is calculated by the net asset value of Series B by 1
minus the maximum sales charge of 3.25%.
See accompanying notes to financial statements.
58
<PAGE>
<TABLE>
<CAPTION>
/ / CoreFund Fixed Income Funds
- -------------------------------------------------------------------------------------------------------------------------------
------------ ---------- ------------- -------------
Intermediate Pennsylvania New Jersey
Municipal Global Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund
------------ ---------- ------------- -------------
<S> <C> <C> <C> <C>
$ 29 $ 996 $ 83 $ 44
------ ------ ------ ------
3 90 7 4
(2) (32) (7) (4)
2 37 4 2
(1) (13) (4) (2)
-- 8 1 1
-- 6 -- --
-- 7 1 --
2 1 2 1
3 -- -- 1
1 -- 1 --
-- 1 -- --
(1) -- 1 --
------ ------ ------ ------
7 105 6 3
------ ------ ------ ------
22 891 77 41
------ ------ ------ ------
(2) (49) 7 6
-- 277 -- --
-- 79 -- --
37 858 120 62
------ ------ ------ ------
35 1,165 127 68
------ ------ ------ ------
$ 57 2,056 $ 204 $ 109
====== ====== ====== ======
$10.11 $ 9.90 $10.61 $10.50
====== ====== ====== ======
10.10 9.89 10.61 10.49
0.34 .33 0.36 0.35
------ ------ ------ ------
$10.44 $10.22 $10.97 $10.84
====== ====== ====== ======
</TABLE>
59
<PAGE>
<TABLE>
<CAPTION>
For the six-month period ended December 31, 1995 (unaudited) and the year-ended June 30, 1995
Statement of Changes in Net Assets (000)
- ----------------------------------------------------------------------------------------------------------------------------
-----------------
Government
Income Fund
-----------------
7/1/95 7/1/94
to to
12/31/95 6/30/95
-------- -------
<S> <C> <C>
Investment activities:
Net investment income $ 422 $ 732
Net realized gain (loss) from security transactions 65 (213)
Net realized gain (loss) from forward foreign currency contracts and foreign currency transactions -- --
Net unrealized appreciation on forward foreign currency contracts, foreign currencies
and translation of assets and liabilities in foreign currencies -- --
Net unrealized appreciation on investments 297 611
------- -------
Net increase in net assets resulting from operations 784 1,130
------- -------
Distributions to shareholders:
Net investment income:
Series A (379) (648)
Series B (41) (86)
Realized capital gains:
Series A -- (1)
Series B -- --
------- -------
Total distributions (420) (735)
------- -------
Share transactions
Series A:
Proceeds from shares issued 1,590 3,952
Reinvestment of cash distributions 217 268
Cost of shares redeemed (16) (2,353)
------- -------
Increase (decrease) in net assets from Series A transactions 1,791 1,867
------- -------
Series B:
Proceeds from shares issued 75 170
Reinvestment of cash distributions 43 72
Cost of shares redeemed (182) (450)
------- -------
Increase (decrease) in net assets from Series B transactions (64) (208)
Increase (decrease) in net assets derived from capital share transaction 1,727 1,659
------- -------
Net increase (decrease) in net assets 2,091 2,054
------- -------
Net Assets:
Beginning of period 12,679 10,625
------- -------
End of period $14,770 $12,679
======= =======
Capital share transactions:
Capital shares outstanding at beginning of period 1,289 1,116
------- -------
Series A:
Shares issued 160 415
Shares issued in lieu of cash distributions 22 28
Shares redeemed (2) (248)
------- -------
Net increase in capital share transactions 180 195
------- -------
Series B:
Shares issued 8 18
Shares issued in lieu of cash distributions 4 8
Shares redeemed (18) (47)
------- -------
Net increase (decrease) in capital share transactions (6) (22)
------- -------
Increase (decrease) derived from capital share transaction 174 173
------- -------
Capital shares outstanding at end of period 1,463 1,289
======= =======
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
<TABLE>
<CAPTION>
/ / CoreFund Fixed Income Funds
- ---------------------------------------------------------------------------------------------------------------------------------
- ----------------- ----------------- ----------------- ----------------- -----------------
Intermediate Pennsylvania New Jersey
Intermediate Municipal Global Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund Bond Fund
- ----------------- ----------------- ----------------- ----------------- -----------------
7/1/95 7/1/94 7/1/95 7/1/94 7/1/95 7/1/94 7/1/95 7/1/94 7/1/95 7/1/94
to to to to to to to to to to
12/31/95 6/30/95 12/31/95 6/30/95 12/31/95 6/30/95 12/31/95 6/30/95 12/31/95 6/30/95
- -------- ------- -------- ------- -------- ------- -------- ------- -------- -------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1,680 $ 3,311 $ 22 $ 69 $ 891 $ 1,772 $ 77 $ 115 $ 41 $ 84
455 (738) (2) (57) (49) 1,044 7 (12) 6 4
-- -- -- -- 277 (1,224) -- -- -- --
-- -- -- -- 79 344 -- -- -- --
305 1,857 37 70 858 503 120 64 62 40
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
2,440 4,430 57 82 2,056 2,439 204 167 109 128
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
(1,626) (2,981) (5) (27) (1,213) (845) (70) (105) (39) (84)
(56) (331) (17) (42) (6) (5) (7) (10) (2) --
-- (9) -- -- -- -- -- -- (9) --
-- (2) -- -- -- -- -- -- (1) --
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
(1,682) (3,323) (22) (69) (1,219) (850) (77) (115) (51) (84)
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
5,458 17,116 -- -- 5,010 327 480 1,718 155 520
1,790 2,752 5 10 497 564 64 73 30 54
(7,817) (14,254) (141) (732) -- (529) (60) -- (227) (499)
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
(569) 5,614 (136) (722) 5,507 362 484 1,791 (42) 75
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
106 62 71 76 1 76 3 154 76 21
47 325 18 33 4 4 9 9 1 --
(89) (7,763) (112) (407) (8) (87) (125) (14) (3) --
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
64 (7,376) (23) (298) (3) (7) (113) 149 74 21
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
(505) (1,762) (159) (1,020) 5,504 355 371 1,940 32 96
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
253 (655) (124) (1,007) 6,341 1,944 498 1,992 90 140
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
57,089 57,744 1,392 2,399 27,068 25,124 2,589 597 1,574 1,434
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
$57,342 $57,089 $ 1,268 $ 1,392 $33,409 $27,068 $ 3,087 $2,589 $ 1,664 $ 1,574
======= ======= ======= ======= ======= ======= ======= ====== ======= =======
5,801 5,992 142 248 2,814 2,774 255 60 155 144
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
554 1,777 -- -- 509 36 47 173 15 54
181 286 -- 1 52 62 6 7 3 5
(792) (1,484) (14) (76) -- (58) (6) -- (22) (50)
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
(57) 579 (14) (75) 561 40 47 180 (4) 9
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
11 6 7 8 -- 8 -- 15 7 2
5 34 2 3 -- 1 1 1 -- --
(9) (813) (11) (42) (1) (9) (12) (1) -- --
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
7 (773) (2) (31) (1) -- (11) 15 7 2
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
(50) (194) (16) (106) 560 40 36 195 3 11
- ------- ------- ------- ------- ------- ------- ------- ------ ------- -------
5,751 5,801 126 142 3,374 2,814 291 255 158 155
======= ======= ======= ======= ======= ======= ======= ====== ======= =======
61
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
For the six-month period ended December 31, 1995 (unaudited) and the periods ended June 30,
Financial Highlights
- ---------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
Net Realized and Net Net Ratio
Asset Unrealized Distributions Distributions Asset Assets Ratio of Net
Value Net Gains or from Net from Value End of Expenses Income
Beginning Investment (Losses) on Investment Capital End of Total of Period to Average to Average
of Period Income Securities Income Gains Period Return/6/ (000) Net Assets Net Assets
---------- ---------- ------------ ------------- ------------- ------- --------- --------- ----------- ----------
- ------------------
Government Income
- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Series A
1995** $ 9.83 $0.31 $0.27 $(0.31) $-- $10.10 6.02%+ $13,426 0.57% 6.28%
1995 9.52 0.62 0.31 (0.62) -- 9.83 10.26 11,305 0.59 6.53
1994 10.18 0.50 (0.62) (0.50) (0.04) 9.52 (1.34) 9,089 0.50 4.93
1993/1/ 10.00 0.13 0.18 (0.13) -- 10.18 3.12+ 6,323 0.44 5.41
Series B
1995** $ 9.84 $0.30 $0.26 $(0.30) $-- $10.10 5.78%+ $ 1,344 0.82% 6.03%
1995 9.51 0.61 0.33 (0.61) -- 9.84 10.23 1,374 0.85 6.25
1994 10.17 0.47 (0.62) (0.47) (0.04) 9.51 (1.57) 1,536 0.75 4.68
1993* 10.00 0.07 0.17 (0.07) -- 10.17 1.71+ 201 0.63 5.35
- -------------------
Intermediate Bond
- -------------------
Series A
1995** $ 9.84 $0.29 $0.13 $(0.29) $-- $ 9.97 4.33%+ $55,290 0.62% 5.81%
1995 9.63 0.53 0.21 (0.53) -- 9.84 8.22 55,128 0.60 5.76
1994 10.18 0.43 (0.53) (0.43) (0.02) 9.63 (0.32) 48,379 0.58 4.30
1993 10.01 0.47 0.31 (0.47) (0.14) 10.18 7.90 44,692 0.42 4.62
1992/2/ 10.00 0.23 0.01 (0.23) -- 10.01 2.49+ 22,623 0.11 5.73
Series B
1995** $ 9.84 $0.28 $0.13 $(0.28) $-- $ 9.97 4.20%+ $ 2,052 0.87% 5.56%
1995 9.63 0.54 0.20 (0.53) -- 9.84 7.95 1,961 0.85 5.27
1994 10.18 0.41 (0.53) (0.41) (0.02) 9.63 (0.56) 9,365 0.83 4.05
1993* 10.01 0.20 0.17 (0.20) -- 10.18 3.95+ 5,752 0.75 3.78
- ----------------------------
Intermediate Municipal Bond
- ----------------------------
Series A
1995** $ 9.83 $0.18 $0.28 $(0.18) $-- $10.11 4.71%+ $ 236 0.97% 3.57%
1995 9.68 0.38 0.15 (0.38) -- 9.83 5.58 365 0.82 3.91
1994 10.09 0.39 (0.41) (0.39) -- 9.68 (0.27) 1,088 0.63 3.91
1993/3/ 10.00 0.04 0.09 (0.04) -- 10.09 1.33+ 2,009 0.58 2.74
Series B
1995** $ 9.83 $0.17 $0.27 $(0.17) $-- $10.10 4.47%+ $ 1,032 1.22% 3.32%
1995 9.67 0.35 0.16 (0.35) -- 9.83 5.42 1,027 1.08 3.65
1994 10.08 0.37 (0.41) (0.37) -- 9.67 (0.52) 1,311 0.88 3.66
1993* 10.00 0.03 0.08 (0.03) -- 10.08 1.19+ 166 0.81 2.51
- -------------
Global Bond
- -------------
Series A
1995** $ 9.62 $0.24 $0.42 $(0.38) $-- $ 9.90 6.96%+ $33,237 0.70% 5.96%
1995 9.06 0.62 0.24 (0.30) -- 9.62 9.70 26,898 0.64 6.84
1994/4/ 10.00 0.25 (1.15) (0.04) -- 9.06 (9.00)+ 24,957 0.73 5.04
Series B
1995** $ 9.61 $0.29 $0.36 $(0.37) $-- $ 9.89 6.83%+ $ 172 0.95% 5.71%
1995 9.04 0.61 0.24 (0.28) -- 9.61 9.57 170 0.89 6.59
1994/4/ 10.00 0.19 (1.11) (0.04) -- 9.04 (9.22)+ 167 0.98 4.79
</TABLE>
<TABLE>
<CAPTION>
Ratio Ratio of
of Expenses Net Income
to Average to Average
Net Assets Net Assets Portfolio
(Excluding (Excluding Turnover
Waivers) Waivers) Rate
---------- ---------- ------------
- ------------------
Government Income
- ------------------
<S> <C> <C> <C>
Series A
1995** 0.90% 5.95% 77%
1995 0.98 6.14 368
1994 1.00 4.43 157
1993/1/ 1.10 4.75 93
Series B
1995** 1.15% 5.70% 77%
1995 1.24 5.86 368
1994 1.25 4.18 157
1993* 1.29 4.69 93
- -------------------
Intermediate Bond
- -------------------
Series A
1995** 0.85% 5.58% 109%
1995 0.84 5.52 405
1994 0.86 4.02 299
1993 0.86 4.18 188
1992/2/ 0.84 5.00 51
Series B
1995** 1.10% 5.33% 109%
1995 1.09 5.03 405
1994 1.11 3.77 299
1993* 1.19 3.34 188
- ----------------------------
Intermediate Municipal Bond
- ----------------------------
Series A
1995** 1.34% 3.20% 0%
1995 1.26 3.47 9
1994 1.17 3.37 43
1993/3/ 1.45 1.87 10
Series B
1995** 1.59% 2.95% 0%
1995 1.52 3.21 9
1994 1.42 3.12 43
1993* 1.68 1.64 10
- -------------
Global Bond
- -------------
Series A
1995** 1.00% 5.66% 24%
1995 1.03 6.45 133
1994/4/ 1.12 4.65 161
Series B
1995** 1.25% 5.41% 24%
1995 1.28 6.20 133
1994/4/ 1.37 4.40 161
</TABLE>
62
<PAGE>
<TABLE>
<CAPTION>
/ / CoreFund Fixed Income Funds
- -----------------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
Net Realized and Net Net Ratio
Asset Unrealized Distributions Distributions Asset Assets Ratio of Net
Value Net Gains or from Net from Value End of Expenses Income
Beginning Investment (Losses) on Investment Capital End of Total of Period to Average to Average
of Period Income Securities Income Gains Period Return/6/ (000) Net Assets Net Assets
---------- ---------- ------------ ------------- ------------- ------ --------- --------- ----------- ----------
- ----------------------------
Pennsylvania Municipal Bond
- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Series A
1995** $10.16 $0.27 $0.45 $(0.27) $-- $10.61 7.22%+ $ 2,870 0.35% 5.26%
1995 9.95 0.51 0.21 (0.51) -- 10.16 7.50 2,272 0.39 5.26
1994/5/ 10.00 0.06 (0.05) (0.06) -- 9.95 0.14+ 434 0.42 5.09
Series B
1995** $10.16 $0.26 $0.45 $(0.26) $-- $10.61 7.08%+ $ 217 0.60% 5.01%
1995 9.95 0.49 0.21 (0.49) -- 10.16 7.25 317 0.64 4.95
1994* 10.00 0.06 (0.05) (0.06) -- 9.95 0.09+ 163 0.67 4.84
- ---------------------------
New Jersey Municipal Bond
- ---------------------------
Series A
1995** $10.12 $0.26 $0.44 $(0.26) $(0.06) $10.50 7.02%+ $ 1,564 0.40% 4.96%
1995 9.94 0.52 0.18 (0.52) -- 10.12 7.25 1,550 0.42 5.21
1994/5/ 10.00 0.06 (0.06 (0.06) -- 9.94 0.01+ 1,432 0.43 5.07
Series B
1995** $10.12 $0.25 $0.43 $(0.25) $(0.06) $10.49 6.79%+ $ 100 0.65% 4.71%
1995 9.95 0.49 0.17 (0.49) -- 10.12 6.84 24 0.68 4.97
1994* 10.00 0.06 (0.05) (0.06) -- 9.95 0.08+ 2 0.68 4.82
</TABLE>
<TABLE>
<CAPTION>
Ratio Ratio of
of Expenses Net Income
to Average to Average
Net Assets Net Assets Portfolio
(Excluding (Excluding Turnover
Waivers) Waivers) Rate
---------- ---------- ------------
- -----------------------------
Pennsylvania Municipal Bond
- -----------------------------
<S> <C> <C> <C>
Series A
1995** 1.10% 4.51% 5%
1995 1.14 4.51 18
1994/5/ 1.17 4.34 3
Series B
1995** 1.35% 4.26% 5%
1995 1.39 4.20 18
1994* 1.42 4.09 3
- ---------------------------
New Jersey Municipal Bond
- ---------------------------
<S> <C> <C> <C>
Series A
1995** 1.16% 4.20% 13%
1995 1.17 4.46 32
1994/5/ 1.35 4.15 13
Series B
1995** 1.41% 3.95% 13%
1995 1.44 4.21 32
1994* 1.60 3.90 13
</TABLE>
<TABLE>
<S> <C>
+ Returns are for the period indicated and have not been annualized.
* Series B has been offered since January 4, 1993. Government Income and Intermediate Term Municipal Funds have offered
Series B since May 3, 1993. Pennsylvania Municipal Bond and New Jersey Municipal Bond Funds have offered Series B
Since May 16, 1994. Ratios for these periods have been annualized.
** Ratios for the six-month period ended December 31, 1995, have been annualized.
/1/ Government Income commenced operations on April 1, 1993. Ratios for this period have been annualized.
/2/ Intermediate Bond commenced operations on February 3, 1992. Ratios for this period have been annualized.
/3/ Intermediate Municipal Bond commenced operations on May 3, 1993. Ratios for this period have been annualized.
/4/ Global Bond commenced operations on December 15, 1993. Ratios for this period have been annualized.
/5/ Pennsylvania Municipal Bond and New Jersey Municipal Bond Funds commenced operations on May 16, 1994. Ratios for this
period have been annualized.
/6/ Total return does not reflect the sales loads charged on the Series B shares.
See accompanying notes to financial statements.
</TABLE>
63
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- -------------------------------------------------------------------------------
Cash Reserve
- -------------------------------------------------------------------------------
[GRAPHIC 29]
[See Appendix A for Description]
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Commercial Paper -- 78.2%
AT&T
5.670%, 01/31/96 $10,000 $ 9,953
5.470%, 04/18/96 10,000 9,836
Alcatel-Alsthom
5.640%, 02/21/96 10,000 9,920
Ameritech Capital
5.630%, 03/05/96 16,000 15,840
Arco Coal Australia
5.650%, 02/29/96 10,694 10,595
Asset Securitization
5.700%, 02/07/96 15,000 14,912
Baltimore Gas & Electric
5.680%, 01/19/96 10,000 9,972
Banc One Funding
5.580%, 03/01/96 8,500 8,421
British Gas
5.670%, 01/24/96 10,000 9,964
CIT Group Holdings
5.650%, 01/17/96 10,000 9,975
Coca Cola
5.520%, 03/13/96 10,000 9,890
Corporate Asset Funding
5.625%, 02/15/96 10,000 9,930
Deutsche Bank Financial
5.720%, 01/05/96 5,000 4,997
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Commercial Paper (continued)
E.I. DuPont de Nemours
5.650%, 02/08/96 $10,000 $ 9,940
5.510%, 03/07/96 10,000 9,899
Ford Motor Credit
5.620%, 02/09/96 10,000 9,939
5.660%, 02/14/96 10,000 9,931
General Electric Capital
5.650%, 02/16/96 11,954 11,868
Goldman Sachs
5.570%, 03/04/96 10,000 9,903
5.620%, 03/18/96 10,000 9,880
H.J. Heinz
5.700%, 02/16/96 5,000 4,964
Hewlett-Packard
5.530%, 03/12/96 15,000 14,836
J.C. Penney Funding
5.650%, 02/13/96 10,000 9,932
Merrill Lynch
5.660%, 02/20/96 20,000 19,843
Metropolitan Life Funding
5.660%, 01/25/96 10,350 10,311
5.630%, 02/02/96 10,000 9,950
Mitsubishi International
5.680%, 02/13/96 10,000 9,932
5.580%, 03/08/96 10,000 9,896
5.600%, 03/08/96 5,000 4,948
National Australia Funding
5.720%, 01/18/96 10,300 10,272
National Rural Utility
5.650%, 02/09/96 9,250 9,193
5.650%, 02/12/96 10,000 9,934
5.600%, 03/15/96 10,000 9,885
New Center Asset Trust
6.000%, 01/02/96 10,000 9,998
Province of Alberta
5.670%, 01/25/96 5,000 4,981
5.420%, 05/08/96 10,000 9,807
Province of British Columbia
5.560%, 02/12/96 6,000 5,961
5.430%, 05/13/96 7,500 7,349
Province of Quebec
5.620%, 01/09/96 10,000 9,987
5.580%, 03/06/96 10,000 9,899
Republic National Bank of
New York
5.510%, 03/14/96 10,000 9,888
Schering-Plough
5.550%, 01/16/96 10,000 9,977
Southwestern Bell Capital
5.470%, 05/03/96 2,650 2,600
5.650%, 02/06/96 10,000 9,944
See accompanying notes to financial statements.
64
<PAGE>
/ / CoreFund Money Market Funds
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Commercial Paper (continued)
Toyota Motor Credit
5.670%, 01/12/96 $ 5,184 $ 5,175
5.720%, 02/05/96 10,000 9,945
---------
Total Commercial Paper
(Cost $444,972,264) 444,972
---------
U.S. Government Agency
Obligations -- 6.1%
FNMA
5.150%, 01/03/96(A) 10,000 10,000
5.250%, 03/25/96 10,000 9,873
5.310%, 12/11/96 10,000 9,988
SLMA
5.250%, 01/03/96(A) 5,000 5,000
---------
Total U.S.Government Agency
Obligations
(Cost $34,861,284) 34,861
---------
Corporate Obligation -- 1.8%
American Express Centurian Bank
5.940%, 06/07/96 10,000 10,000
---------
Total Corporate Obligation
(Cost $10,000,000) 10,000
---------
Master Notes -- 2.0%
Associates Corporation of
North America
5.440%, 01/07/96(A) 10,637 10,637
SLMA
5.460%, 01/07/96(A) 517 517
---------
Total Master Notes
(Cost $11,154,009) 11,154
---------
Certificates Of Deposit -- 1.8%
Harris Trust & Savings Bank
5.790%, 01/17/96 10,000 10,000
---------
Total Certificates Of Deposit
(Cost $10,000,028) 10,000
---------
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Mortgage Related -- 0.2%
Case Equipment Loan Trust
1995-B Class A1
5.825%, 09/15/96 $1,240 $ 1,240
---------
Total Mortgage Related
(Cost $1,239,912) 1,240
---------
Repurchase Agreements -- 10.5%
Morgan Stanley 5.87%, dated
12/29/95, matures 1/02/96,
repurchase price $17,011,088
(collateralized by U.S. Treasury
Note, par value $16,635,000,
6.125%, matures 9/30/00:
market value $17,600,853) 17,000 17,000
Nations Bank 5.92%, dated
12/29/95, matures 1/02/96,
repurchase price $43,028,284
(collateralized by U.S. Treasury
Note, par value $42,830,000,
6.125%, matures 5/15/98:
market value $44,360,761) 43,000 43,000
---------
Total Repurchase Agreements
(Cost $60,000,000) 60,000
---------
Total Investments -- 100.5%
(Cost $572,227,497) 572,227
---------
Total Other Assets and Liabilities,
Net -- (0.5)% (2,735)
---------
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 1
billion authorized) based on
551,434,273 outstanding shares 551,434
Portfolio Shares - Series B
($0.001 par value - 1
billion authorized) based on
18,064,197 outstanding shares 18,064
Accumulated Net Realized Loss on
Investments (6)
---------
Total Net Assets -- 100% $569,492
=========
Net Asset Value & Redemption Price
Per Share
Series A $1.00
=========
Series B $1.00
=========
(A) Variable Rate Securities - The rate reflected on the Statement of Net
Assets is the rate in effect on December 31, 1995.
FNMA - Federal National Mortgage Association
SLMA - Student Loan Marketing Association
See accompanying notes to financial statements.
65
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- -------------------------------------------------------------------------------
Treasury Reserve
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
U.S. Treasury Obligations -- 40.1%
U.S. Treasury Bills
5.370%+, 01/18/96 $ 5,000 $ 4,987
5.390%+, 01/25/96 1,000 9,964
5.470%+, 02/01/96 5,000 4,977
5.330%+, 02/08/96 10,000 9,944
5.360%+, 02/15/96 5,000 4,967
5.290%+, 02/22/96 7,000 6,947
5.330%+, 03/07/96 11,000 10,893
5.310%+, 03/14/96 8,700 8,606
5.310%+, 03/21/96 10,000 9,882
5.330%+, 03/28/96 10,000 9,871
5.400%+, 04/04/96 10,000 9,859
5.320%+, 04/11/96 5,500 5,418
5.300%+, 04/18/96 10,000 9,841
5.290%+, 04/25/96 10,000 9,831
5.480%+, 05/02/96 5,000 4,907
5.310%+, 05/09/96 10,000 9,810
5.230%+, 05/16/96 10,000 9,803
5.250%+, 05/23/96 10,000 9,792
5.250%+, 05/30/96 10,000 9,781
5.190%+, 06/06/96 10,000 9,774
5.070%+, 06/13/96 10,000 9,769
4.980%+, 06/20/96 10,000 9,763
5.120%+, 06/27/96 5,000 4,873
5.160%+, 07/25/96 5,000 4,852
U.S. Treasury Note
5.500%, 04/30/96 10,000 9,987
U.S. Treasury STRIPS
5.660%+, 05/15/96 5,000 4,899
6.195%+, 05/15/96 6,000 5,869
-----
Total U.S. Treasury Obligations
(Cost $219,865,534) 219,866
-------
- ------------------------------------------------------------------------------
Description Par (000) Value (000)
- ------------------------------------------------------------------------------
Repurchase Agreements -- 60.3%
Aubrey Lanston 5.85%, dated
12/29/95, matures 01/02/96,
repurchase price $120,078,333
(collateralized by various
U.S. Treasury Notes, total par
value $120,540,000, 5.125% - 5.750%,
matures 03/31/97 - 04/30/98,
U.S. Treasury Bill, par value
21,095,000 matures 08/22/96;
total market value $124,151,564) $120,000 $ 120,000
First National Bank of Chicago
5.85%, dated 12/29/95, matures
01/02/96, repurchase price
$20,013,000 (collateralized by
U.S. Treasury Note, par value
$21,095,000, 6.125%, matures
08/22/96: market value
$20,443,165) 20,000 20,000
Goldman Sachs 5.83%, dated
12/29/95, matures 01/02/96,
repurchase price $13,008,421
(collateralized by U.S. Treasury
Note, par value $11,595,000,
7.875%, matures 08/15/01:
market value $13,617,530) 13,000 13,000
Morgan Stanley 5.87%, dated
12/29/95, matures 01/02/96,
repurchase price $20,013,044
(collateralized by U.S. Treasury
Note, par value $19,570,000,
6.125%, matures 09/30/00:
market value $20,706,263) 20,000 20,000
Nations Bank 5.92%, dated
12/29/95, matures 01/02/96,
repurchase price $12,007,893
(collateralized by U.S. Treasury
Note, par value $11,950,000,
6.125%, matures 05/15/98:
market value $12,377,098) 12,000 12,000
Sanwa Bank 5.85%, dated
12/29/95, matures 01/02/96,
repurchase price $125,081,250
(collateralized by U.S. Treasury
Note, par value $124,766,000,
5.75%, matures 10/31/00:
market value $128,750,526) 125,000 125,000
STRIPS - Separately Registered Interest and Principal of Securities
+ Effective yield
See accompanying notes to financial statements.
66
<PAGE>
/ / CoreFund Money Market Funds
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreements (continued)
Swiss Bank 5.65%, dated
12/29/95, matures 01/02/96,
repurchase price $8,670,440
(collateralized by U.S. Treasury
Note, par value $8,665,000,
6%, matures 08/31/97: market
value $9,113,933) $ 8,665 $ 8,665
Swiss Bank 5.85%, dated
12/29/95, matures 01/02/96,
repurchase price $12,007,800
(collateralized
by U.S. Treasury Note, par
value $11,865,000, 6.00%,
matures 08/31/97:
market value $12,498,708) 12,000 12,000
-------
Total Repurchase Agreements
(Cost $330,665,000) 330,665
-------
Total Investments -- 100.4%
(Cost $550,530,534) 550,531
-------
Total Other Assets and Liabilities,
Net -- (0.4)% (2,427)
-------
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 1
billion authorized) based on
526,058,688 outstanding shares 526,059
Portfolio Shares - Series B
($0.001 par value - 1
billion authorized)
based on 22,022,049
outstanding shares 22,022
Accumulated Net Realized Gain on
Investments 23
------
Total Net Assets -- 100% $548,104
-------
-------
Net Asset Value & Redemption Price
Per Share
Series A $1.00
-----
-----
Series B $1.00
-----
-----
Tax-Free Reserve
- -------------------------------------------------------------------------------
[GRAPHIC 30]
[SEE APPENDIX A FOR DESCRIPTION]
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Municipal Bonds -- 104.4%
Alabama -- 11.7%
Alabama State Housing Finance
Authority Revenue Bond
5.250%, 01/07/96(A)(B)(C) $ 900 $ 900
Montgomery, Alabama TECP
3.750%, 01/11/96(C) 2,000 2,000
Winfield, Alabama Industrial
Development Authority
Revenue Bond for Union
Underwear Project
5.250%, 01/07/96(A)(B)(C) 1,800 1,800
Alabama State Housing TECP
3.600%, 02/22/96(C) 2,500 2,500
-----
7,200
-----
Alaska -- 5.4%
Valdez, Alaska TECP
3.800%, 01/16/96(C) 2,000 2,000
3.750%, 01/31/96(C) 1,200 1,200
Valdez, Alaska Industrial
Development Authority
Revenue Bond for Exxon
Pipeline Company Project
5.950%, 01/03/96(A)(B)(C) 100 100
-----
3,300
-----
See accompanying notes to financial statements.
<PAGE>
67
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- -------------------------------------------------------------------------------
Tax-Free Reserve (continued)
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
California -- 0.6%
Santa Clara, California Electric
Revenue Bond, Series A
4.900%, 01/07/96(A)(B)(C) $ 370 $ 370
-------
Delaware -- 0.2%
Wilmington, Delaware Hospital
Revenue Bond for Franciscan
Health Systems Project, Series A
6.000%, 01/03/96(A)(B)(C) 100 100
-----
Florida -- 3.6%
Dade County, Florida Capital
Asset Revenue Bond, Ser 1990
5.650%, 01/07/96(A)(B)(C) 1,200 1,200
West Orange, Florida TECP
3.400%, 02/08/96(C) 1,000 1,000
-----
2,200
-----
Hawaii -- 1.2%
Hawaii State, Series CD GO
3.850%, 02/01/96 750 750
-----
Illinois -- 2.8%
Illinois State Housing and Finance
Authority Revenue Bond for
Franciscan Village Project, Series A
5.200%, 01/07/96(A)(B)(C) 700 700
Illinois State Toll Highway
Authority Revenue Bond
7.380%, 01/01/06 1,000 1,020
-----
1,720
-----
Indiana -- 11.6%
Gary, Indiana Industrial
Development Authority
Revenue Bond for U.S.
Steel Project
4.250%, 01/31/96(A)(B)(C) 1,600 1,600
Jasper County, Indiana TECP
3.800%, 01/10/96(C) 690 690
3.800%, 01/12/96(C) 700 700
Sullivan, Indiana TECP
3.850%, 02/01/96(C) 1,000 1,000
3.900%, 02/09/96(C) 600 600
3.650%, 04/01/96(C) 1,500 1,500
3.550%, 04/10/96(C) 300 300
Jasper County, Indiana TECP
3.800%, 01/09/96(C) 500 500
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Indiana (continued)
Hammond, Indiana Pollution
Control Revenue Bond for
Amoco Oil Company Project
5.950%, 01/03/96(A)(B)(C) $ 220 $ 220
-----
7,110
-----
Iowa -- 0.7%
Des Moines, Iowa Commercial
Development Revenue Bond for
Capital Center III Project
5.150%, 01/07/96(A)(B)(C) 400 400
-----
Kansas -- 6.9%
City of Burlington, Kansas TECP
3.900%, 02/09/96(C) 400 400
3.450%, 02/15/96(C) 2,000 2,000
3.650%, 03/12/96(C) 700 700
3.650%, 04/08/96(C) 1,020 1,020
Wichita, Kansas Health Facilities
Revenue Bond for Wichita
Health Systems Project, Series XXV
5.300%, 01/07/96(A)(B)(C) 100 100
-----
4,220
-----
Louisiana -- 2.4%
Jefferson Parish, Louisiana
Industrial Development
Authority Revenue Bond for
George J. Ackel, Sr. Project
5.200%, 01/07/96(A)(B)(C) 800 800
Parish of Desota, Louisiana
Pollution Control Revenue
Bond for Central Louisiana
Electric Company Project
5.050%, 01/07/96(A)(B)(C) 700 700
-----
1,500
-----
Michigan -- 0.2%
Michigan State Industrial
Development Authority Revenue
Bond for Consumer Power Project
5.950%, 01/03/96(A)(B)(C) 100 100
-----
Minnesota -- 2.6%
Robinsdale, Minnesota Industrial
Development Authority
Revenue Bond
5.200%, 01/03/96(A)(B)(C) 1,200 1,200
See accompanying notes to financial statements.
68
<PAGE>
/ / CoreFund Money Market Funds
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Minnesota (continued)
Saint Louis Park, Minnesota
Industrial Development Authority
Revenue Bond for Unicare
Home Project
3.900%, 01/31/96(A)(B)(C) $ 400 $ 400
-----
1,600
-----
Mississippi -- 1.6%
Clairborne County, Mississippi
TECP
3.450%, 02/16/96(C) 1,000 1,000
-----
Missouri -- 3.7%
Missouri State Environmental
Improvement and Energy
Resources Authority Revenue
Bond for Union Electric
Company Project, Series B
4.000%, 06/01/96(B)(C) 750 750
Missouri State Environment
Authority TECP
3.450%, 03/16/96(C) 1,500 1,500
-----
2,250
-----
Montana -- 4.7%
Forsyth, Montana Pollution
Control Revenue Bond for
Portland General Electric
Project, Series B
5.000%, 01/07/96(A)(B)(C) 100 100
Forsyth, Montana Pollution
Control Revenue Bond for
Portland General Electric
Project, Series A
4.900%, 01/07/96(A)(B)(C) 1,000 1,000
Forsyth, Montana Pollution
Control Revenue Bond for
Portland General Electric
Project, Series C
4.900%, 01/07/96(A)(B)(C) 1,000 1,000
Forsyth, Montana Pollution
Control Revenue Bond for
Portland General Electric
Project, Series D
4.900%, 01/07/96(A)(B)(C) 600 600
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Montana (continued)
Forsyth, Montana Pollution
Control Revenue Bond for
Portland General Electric Project
4.900%, 01/07/96(A)(B)(C) $ 200 $ 200
-----
2,900
-----
Nevada -- 2.4%
Nevada State Housing Facilities
Revenue Bond for Multi-Unit
Park Project, Series A
5.500%, 01/07/96(A)(B)(C) 1,500 1,500
-----
New Hampshire -- 3.2%
Manchester, New Hampshire GO
5.500%, 11/01/96 1,945 1,971
-----
New York -- 0.5%
New York City, New York GO,
Series B
5.000%, 01/03/96(A)(B)(C) 300 300
-----
North Carolina -- 0.7%
Wake County, North Carolina
Industrial Development
Authority Revenue Bond for
Carolina Power & Light
Company Project
5.000%, 01/07/96(A)(B)(C) 400 400
-----
Ohio -- 0.2%
Ohio State Water Development
Authority Revenue Bond for
Environmental Mead
Company, Series B
5.900%, 01/07/96(A)(B)(C) 100 100
-----
Oregon -- 0.8%
Oregon State GO, Series 73G
5.250%, 01/07/96(A)(B)(C) 500 500
-----
Pennsylvania -- 9.9%
Allegheny County, Pennsylvania
Hospital Development Revenue
Bond for Presbyterian University
Hospital Project, Series B1
5.000%, 01/07/96(A)(B)(C) 100 100
Allegheny County, Pennsylvania
Hospital Development Revenue
Bond for Presbyterian University
Hospital Project
5.000%, 01/07/96(A)(B)(C) 850 $850
See accompanying notes to financial statements.
69
<PAGE>
As of December 31, 1995 (Unaudited)
Statement of Net Assets
- -------------------------------------------------------------------------------
Tax-Free Reserve (concluded)
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Pennsylvania (continued)
Beaver County, Pennsylvania TECP
3.750%, 01/24/96(C) $2,000 $ 2,000
Beaver County, Pennsylvania
Industrial Development
Authority Revenue Bond for
Duquesne Light Company
Project, Series B
4.950%, 01/07/96(A)(B)(C) 100 100
Lehigh County, Pennsylvania
Industrial Development
Authority Revenue Bond
3.750%, 01/07/96(A)(B)(C) 300 300
Pennsylvania State Higher
Education Facilities Authority
Revenue Bond Carnegie Project
4.250%, 11/01/96 1,560 1,566
Washington County, Pennsylvania
Lease Revenue Bond
5.350%, 01/07/96(A)(B)(C) 1,155 1,155
-----
6,071
-----
Rhode Island -- 6.5%
Rhode Island State TAN
4.500%, 06/28/96(C) 3,000 3,013
Rhode Island State Port Authority &
Economic Development Authority
Revenue for Newport Electric
Corporation Project
5.000%, 01/07/96(A)(B)(C) 1,000 1,000
-----
4,013
-----
South Carolina -- 2.2%
Piedmont, South Carolina
Municipal Power Agency
Revenue Bond
9.700%, 01/01/96 500 515
Richland County, South Carolina
Hospital Facilities Revenue
Bond for Sunhealth-Orangeburg
Project, Series C2
5.650%, 01/07/96(A)(B)(C) 450 450
York County, South Carolina
Pollution Control Revenue
Bond, Series NRU-84N-2
4.650%, 01/07/96(A)(B)(C) 400 400
-----
1,365
-----
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
South Dakota -- 1.2%
Rapid City, South Dakota Industrial
Development Authority Revenue
Bond for Corporate Property
Association Project
5.150%, 01/07/96(A)(B)(C) $ 765 $ 765
-----
Texas -- 11.2%
Camp County, Texas Industrial
Development Authority
Revenue Bond, Texas Oil &
Gas Project
5.350%, 01/07/96(A)(B)(C) 500 500
Grapevine, Texas Industrial
Development Authority
Revenue Bond for American
Airlines Project, Series A1
6.000%, 01/03/96(A)(B)(C) 200 200
Montgomery County, Texas
Industrial Development
Authority Revenue Bond for
Dallas Tile Corporation
Project, Series A
5.200%, 01/07/96(A)(B)(C) 100 100
Nueces County, Texas Health
Facilities Authority Revenue
Bond for Driscoll Children's
Foundation Project
5.200%, 01/07/96(A)(B)(C) 1,675 1,675
Texas State Higher Education
Authority Revenue Bond for
Southern Methodist University
Project
5.950%, 01/03/96(A)(B)(C) 1,800 1,800
Texas State TAN
4.750%, 08/30/96 2,600 2,618
-----
6,893
-----
Vermont -- 2.3%
Vermont State Student Loan
Revenue Bond for Student
Loan Assistance Corporation
Project
3.750%, 01/31/96(A)(B)(C) 1,400 1,400
-----
See accompanying notes to financial statements.
70
<PAGE>
/ / CoreFund Money Market Funds
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Virginia -- 0.3%
Virginia State Peninsula Port
Authority Revenue Bond,
Dominion Terminal Project,
Series 1987 C
5.900%, 01/03/96(A)(B)(C) $ 150 $ 150
-----
West Virginia -- 0.7%
West Virginia State Hospital
Finance Authority Revenue
Bond for St. Mary's Hospital
Project
5.200%, 01/07/96(A)(B)(C) 400 400
-----
Wisconsin -- 1.3%
Lac Du Flambeau, Wisconsin Lake
Superior Chippewa Indians
Special Obligation for Simpson
Electric Project
5.250%, 01/07/96(A)(B)(C) 800 800
-----
Wyoming -- 1.1%
Lincoln County, Wyoming Resource
Recovery Revenue Bond for
Exxon Project, Series C
5.900%, 01/03/96(A)(B)(C) 200 200
Lincoln County, Wyoming
Pollution Control Revenue
Bond, Series 1984 B
5.900%, 01/03/96(A)(B)(C) 300 300
Sublette County, Wyoming
Pollution Control Revenue
Bond for Exxon Project, Series 84
5.950%, 01/03/96(A)(B)(C) 200 200
-----
700
-----
Total Municipal Bonds
(Cost $64,047,701) 64,048
------
- -------------------------------------------------------------------------------
Description Par (000) Value (000)
- -------------------------------------------------------------------------------
Total Investments -- 104.4%
(Cost $64,047,701) $64,048
-------
Other Assets, Less Liabilities, Net -- (4.4)% (2,675)
-------
Net Assets:
Portfolio Shares - Series A
($0.001 par value - 250 million
authorized) based on
59,156,845 outstanding shares 59,157
Portfolio Shares - Series B
($0.001 par value - 250 million
authorized) based on
2,265,192 outstanding shares 2,265
Accumulated net realized
loss on investments (49)
-----
Total Net Assets -- 100% $61,373
-------
-------
Net Asset Value & Redemption Price
Per Share
Series A $1.00
-----
-----
Series B $1.00
-----
-----
GO--General Obligation
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, 1995.
(B) Put or Demand features exist requiring the issuer to repurchase the
instrument prior to maturity. The maturity date shown is the lesser of the put
demand date or maturity date.
(C) Securities are held in connection with a letter of credit issued by a
major commercial bank.
See accompanying notes to financial statements.
71
<PAGE>
For the six-month period ended December 31, 1995 (unaudited)
Statement of Operations (000) / / CoreFund Money Market Funds
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------- ------------- ----------
Tax-
Cash Treasury Free
Reserve Reserve Reserve
--------- ------------- ----------
<S> <C> <C> <C>
Investment income:
Interest $ 17,241 $ 14,484 $ 1,222
-------- -------- --------
Expenses:
Investment Advisory fees 1,478 1,254 162
Less Investment Advisory fees waived (757) (642) (83)
Administrative fees 739 627 81
Less Administrative fees waived (266) (226) (29)
Transfer Agent fees & expenses 92 75 9
Insurance 17 8 2
Professional fees 56 43 6
Registration & Filing fees 38 33 4
12b-1 fees 23 25 2
Taxes--other than income 4 20 3
Printing 41 33 4
Miscellaneous 43 34 3
-------- -------- --------
Total expenses 1,508 1,284 164
-------- -------- --------
Net investment income 15,733 13,200 1,058
Net realized gain (loss) on securities transactions (2) 20 --
-------- -------- --------
Net increase in net assets resulting from operations $ 15,731 $ 13,220 $ 1,058
-------- -------- --------
-------- -------- --------
</TABLE>
See accompanying notes to financial statements.
72
<PAGE>
For the six-month period ended December 31, 1995 (unaudited) and the
year-ended June 30, 1995
Statement of Changes in Net Assets (000) / / CoreFund Money Market Funds
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------ ---------------------- ------------------------
Cash Treasury Tax-Free
Reserve Reserve Reserve
------------------------ ---------------------- ------------------------
7/1/95 7/1/94 7/1/95 7/1/94 7/1/95 7/1/94
to to to to to to
12/31/95 6/30/95 12/31/95 6/30/95 12/31/95 6/30/95
------------ ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 15,733 $ 27,369 $ 13,200 $ 23,160 $ 1,058 $ 2,418
Net realized gain (loss) on
securities transactions (2) (30) 20 4 -- (27)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 15,731 27,339 13,220 23,164 1,058 2,391
----------- ----------- ----------- ----------- ----------- -----------
Dividends distributed from:
Net investment income:
Series A (15,262) (26,626) (12,692) (22,642) (1,033) (2,359)
Series B (471) (743) (508) (518) (25) (59)
Net realized gain:
Series A -- -- -- -- -- --
Series B -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total dividends distributed (15,733) (27,369) (13,200) (23,160) (1,058) (2,418)
----------- ----------- ----------- ----------- ----------- -----------
Capital share transactions:
Series A:
Proceeds from shares issued 542,259 1,153,765 970,768 1,884,529 74,765 196,955
Shares issued in lieu of
cash distributions 1,920 3,226 2,670 5,268 106 228
Cost of shares redeemed (503,089) (1,151,894) (926,583) (1,895,568) (78,518) (213,785)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net
assets from Series A transactions 41,090 5,097 46,855 (5,771) (3,647) (16,602)
----------- ----------- ----------- ----------- ----------- -----------
Series B:
Proceeds from shares issued 18,669 42,775 24,877 31,754 1,575 3,788
Reinvestment of cash distributions 458 690 179 257 24 55
Cost of shares redeemed (18,647) (37,332) (24,645) (17,973) (859) (5,026)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
from Series B transactions 480 6,133 411 14,038 740 (1,183)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
derived from capital share transactions 41,570 11,230 47,266 8,267 (2,907) (17,785)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets 41,568 11,200 47,286 8,271 (2,907) (17,812)
----------- ----------- ----------- ----------- ----------- -----------
Net Assets:
Beginning of year 527,924 516,724 500,818 492,547 64,280 82,092
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 569,492 $ 527,924 $ 548,104 $ 500,818 $ 61,373 $ 64,280
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Capital share transactions
Capital shares outstanding at beginning
of period 527,928 516,698 500,815 492,548 64,328 82,113
Series A:
Shares issued 542,259 1,153,765 970,768 1,884,530 74,765 196,955
Shares issued in lieu of cash distributions 1,920 3,226 2,670 5,268 106 228
Shares redeemed (503,089) (1,151,894) (926,583) (1,895,567) (78,518) (213,785)
----------- ----------- ----------- ----------- ----------- -----------
Total Series A transactions 41,090 5,097 46,855 (5,771) (3,647) (16,602)
----------- ----------- ----------- ----------- ----------- -----------
Series B:
Shares issued 18,669 42,775 24,877 31,754 1,575 3,788
Shares issued in lieu of cash
distributions 458 690 179 257 24 55
Shares redeemed (18,647) (37,332) (24,645) (17,973) (859) (5,026)
----------- ----------- ----------- ----------- ----------- -----------
Total Series B transactions 480 6,133 411 14,038 740 (1,183)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) derived from
capital share transactions 41,570 11,230 47,266 8,267 (2,907) (17,785)
----------- ----------- ----------- ----------- ----------- -----------
Capital shares outstanding at
end of period 569,498 527,928 548,081 500,815 61,421 64,328
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
73
<PAGE>
For the six-month period ended December 31, 1995 (unaudited) and the
periods ended June 30,
Financial Highlights / / CoreFund Money Market Funds
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
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
Cash Reserve 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>
Series A
1995** $1.00 $0.03 $(0.03) $1.00 2.72%+ $551,429 0.50% 5.33% 0.85% 4.98%
1995 1.00 0.05 (0.05) 1.00 5.15 510,341 0.48 5.04 0.85 4.67
1994 1.00 0.03 (0.03) 1.00 3.00 505,273 0.47 2.95 0.85 2.57
1993 1.00 0.03 (0.03) 1.00 2.99 460,832 0.46 2.97 0.85 2.58
1992 1.00 0.05 (0.05) 1.00 4.83 568,672 0.38 4.68 0.82 4.24
1991 1.00 0.07 (0.07) 1.00 7.28 473,187 0.37 6.94 0.82 6.49
1990 1.00 0.08 (0.08) 1.00 8.65 316,290 0.34 8.28 0.80 7.82
1989 1.00 0.09 (0.09) 1.00 8.87 186,151 0.37 8.62 0.90 8.05
1988 1.00 0.07 (0.07) 1.00 6.70 82,399 0.55 6.54 1.14 5.96
1987 1.00 0.06 (0.06) 1.00 5.85 35,054 0.54 5.60 1.01 5.13
1986/1/ 1.00 0.06 (0.06) 1.00 3.36+ 56,416 0.59 6.93 1.21 6.31
Series B
1995** $1.00 $0.03 $(0.03) $1.00 2.59%+ $ 18,064 0.75% 5.08% 1.10% 4.73%
1995 1.00 0.05 (0.05) 1.00 4.89 17,583 0.73 4.86 1.10 4.49
1994 1.00 0.03 (0.03) 1.00 2.74 11,451 0.72 2.70 1.10 2.32
1993* 1.00 0.01 (0.01) 1.00 1.23+ 15,330 0.76 2.52 1.15 2.13
- ----------------
Treasury Reserve
- ----------------
Series A
1995** $1.00 $0.03 $(0.03) $1.00 2.69%+ $526,081 0.50% 5.28% 0.85% 4.93%
1995 1.00 0.05 (0.05) 1.00 4.98 479,206 0.48 4.91 0.85 4.54
1994 1.00 0.03 (0.03) 1.00 2.91 484,974 0.48 2.87 0.86 2.49
1993 1.00 0.03 (0.03) 1.00 2.96 446,788 0.46 2.89 0.85 2.50
1992 1.00 0.05 (0.05) 1.00 4.73 444,388 0.38 4.58 0.82 4.14
1991 1.00 0.07 (0.07) 1.00 7.11 427,439 0.37 6.80 0.82 6.35
1990 1.00 0.08 (0.08) 1.00 8.38 270,524 0.37 8.03 0.84 7.56
1989/2/ 1.00 0.06 (0.06) 1.00 4.66+ 220,479 0.20 9.26 0.84 8.62
Series B
1995** $1.00 $0.03 $(0.03) $1.00 2.56%+ $ 22,023 0.75% 5.03% 1.10% 4.68%
1995 1.00 0.05 (0.05) 1.00 4.72 21,612 0.73 4.81 1.10 4.44
1994 1.00 0.03 (0.03) 1.00 2.65 7,573 0.73 2.62 1.11 2.24
1993* 1.00 0.01 (0.01) 1.00 1.21+ 7,672 0.75 2.46 1.14 2.07
- ----------------
Tax-Free Reserve
- ----------------
Series A
1995** $1.00 $0.02 $(0.02) $1.00 1.66%+ $ 59,109 0.50% 3.27% 0.85% 2.92%
1995 1.00 0.03 (0.03) 1.00 3.12 62,756 0.48 3.09 0.85 2.72
1994 1.00 0.02 (0.02) 1.00 2.03 79,384 0.49 2.00 0.87 1.62
1993 1.00 0.02 (0.02) 1.00 2.23 72,255 0.51 2.20 0.89 1.82
1992 1.00 0.03 (0.03) 1.00 3.56 80,147 0.37 3.39 0.88 2.88
1991/3/ 1.00 0.01 (0.01) 1.00 1.07+ 42,573 0.06 4.20 0.81 3.45
Series B
1995** $1.00 $0.02 $(0.02) $1.00 1.53%+ $ 2,264 0.75% 3.02% 1.10% 2.67%
1995 1.00 0.03 (0.03) 1.00 2.86 1,524 0.73 2.80 1.10 2.43
1994 1.00 0.02 (0.02) 1.00 1.78 2,708 0.74 1.75 1.12 1.37
1993* 1.00 0.01 (0.01) 1.00 0.85+ 1,795 0.76 1.71 1.14 1.33
</TABLE>
<TABLE>
<S> <C>
+ Returns are for the period indicated and have not been annualized.
* Series B has been offered since January 4, 1993. Ratios for this period have been annualized.
** Ratios for this six-month period ended December 31, 1995, have been annualized.
1 Cash Reserve commenced operations on August 16, 1985. Ratios for this period have been annualized.
2 Treasury Reserve commenced operations on November 21, 1988. Ratios for this period have been annualized.
3 Tax-Free Reserve commenced operations on April 16, 1991. Ratios for this period have been annualized.
See accompanying notes to financial statements.
</TABLE>
74
<PAGE>
As of December 31, 1995 (unaudited)
Notes to Financial Statements / / CoreFund
- --------------------------------------------------------------------------------
1. Organization
The CoreFund Growth Equity Fund, Value Equity Fund, Equity Index Fund,
International Growth Fund, Balanced Fund (the Equity Funds), Government Income
Fund, Intermediate Bond Fund, Intermediate Municipal Bond Fund, Global Bond
Fund, Pennsylvania Municipal Bond Fund, New Jersey Municipal Bond Fund (the
Fixed Income Funds), Cash Reserve, Treasury Reserve, and Tax-Free Reserve (the
Money Market Funds) are portfolios 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 17 separate 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 of the Equity Funds are included on pages 26 to
46, the financial statements of the Fixed Income Funds are included on pages 47
to 62 and the financial statements of the Money Market Funds are included on
pages 63 to 74. The financial statements of the Fiduciary Reserve, Fiduciary
Treasury Reserve and Fiduciary Tax-Free Reserve are not presented herein. The
assets of each Portfolio are segregated, and a Shareholder's interest is limited
to the Portfolio in which shares are held. The Funds' prospectus provides a
description of the Funds' investment objectives, policies and strategies.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed
by the Portfolios.
Security Valuation--Investment securities of the Equity and Fixed Income
Funds which are listed on a securities exchange for which market quotations are
available are valued by an independent pricing service at the last quoted sales
price for such securities on each business day. If there is no such reported
sale, these securities and unlisted securities for which market quotations are
readily available are valued at the most recent quoted bid price using
procedures determined in good faith by the Board of Trustees. Debt obligations
with sixty days or less remaining until maturity may be valued at their
amortized cost. Under this valuation method, purchase discounts and premiums are
accreted and amortized ratably to maturity and are included in interest income.
Investment securities of the Money Market Funds 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.
The books and records of the International Growth Fund and Global Bond
Fund are maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars on the following basis:
(I) market value of investment securities, asset and liabilities at the
current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the respective
dates of such transactions.
75
<PAGE>
Notes to Financial Statements (continued)
The International Growth Fund does not isolate that portion of gains and
losses in investments in equity securities which is due to changes in the
foreign exchange rates from that which is due to changes in market prices of
equity securities.
The International Growth Fund and Global Bond Fund report certain
foreign currency related transactions as components of unrealized and realized
gains for financial reporting purposes, whereas such components are treated as
ordinary income for Federal income tax purposes.
Forward Foreign Currency Contracts--The International Growth Fund and
Global Bond Fund enter into forward foreign currency contracts as hedges against
either specific transactions or portfolio positions. The aggregate principal
amounts of the contracts are not recorded as the funds intend to settle the
contracts prior to delivery. All commitments are "marked-to-market" daily at the
applicable foreign exchange rate and any resulting unrealized gains or losses
are recorded currently. The funds realize gains or losses at the time forward
contracts are extinguished. Financial future contracts are valued at the
settlement price established each day by the board of trade on exchange on which
they are traded.
Security Transactions and Investment Income--Security transactions are
accounted for on the trade date of the security purchase or sale. Cost 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 purchase discounts or premiums during the respective holding
period, which is calculated using the effective interest method. Interest income
is recorded on the accrual basis. Dividend income is recorded on ex-date.
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 Advisor 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 collateral
by the Portfolio may be delayed or limited.
Expenses--Expenses that are directly related to one of the Portfolios
are charged directly to that Portfolio. Other operating expenses of the Company
are prorated to the Portfolios on the basis of relative net assets. Series
specific expenses, such as the 12B-1 fees, are borne by that series. Income,
other expenses and accumulated realized and unrealized gains and losses of a
Portfolio are allocated to the respective series on the basis of the relative
net asset value each day.
Distribution to Shareholders--The Growth Equity, Value Equity, Equity
Index, Balanced Funds and Global Bond Fund declare and pay dividends on a
quarterly basis. The International Growth Fund declares and pays dividends on a
semi-annual basis. Such dividends are reinvested in additional shares unless
otherwise requested. The Government Income Fund, Intermediate Bond Fund,
Intermediate Municipal Bond Fund, Pennsylvania Municipal Bond Fund, New Jersey
Municipal Bond Fund, Cash Reserve, Treasury Reserve and Tax-Free Reserve
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 each 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 tax is required.
Other--All organizational costs incurred with the start up of the
Balanced Fund, Government Income Fund, Intermediate Municipal Bond Fund, Global
Bond Fund, Pennsylvania Municipal Bond Fund and New Jersey Municipal Bond Fund
are being amortized on a straight line basis over a period of sixty months. If
any or all of the shares representing initial capital of each fund are redeemed
by any holder thereof prior to the end of the amortization period, the proceeds
will be reduced by the unamortized organizational cost balance in the same
proportion as the number of shares redeemed bears to the initial shares
outstanding immediately preceding the redemption.
76
<PAGE>
/ / CoreFund
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 investment advisory agreements dated June 23, 1987 (Treasury
Reserve and Cash Reserve), December 5, 1989 (International Growth, Value Equity
and Equity Index), March 25, 1991 (Growth Equity, Balanced, Government Income
Bond Fund, Intermediate Bond Fund, Intermediate Municipal Bond Fund, Global Bond
Fund and Tax-Free Reserve), and May 15, 1994 (Pennsylvania Municipal Bond Fund
and New Jersey Municipal Bond Fund), investment advisory services are provided
to the Funds 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 Management Corporation.
CoreStates Advisers is entitled to receive an annual fee of 0.75% on the average
net assets of the Growth Equity and Value Equity Funds, 0.40% on the average net
assets of the Equity Index Fund, 0.80% on the average net assets of the
International Growth Fund, 0.70% on the average net assets of the Balanced Fund,
0.60% on the average net assets of the Global Bond Fund and 0.50% on the average
net assets of the Government Income Fund, Intermediate Bond Fund, Intermediate
Municipal Bond Fund, Pennsylvania Municipal Bond Fund, New Jersey Municipal Bond
Fund and each of the Money Market Funds. Such fee is computed daily and paid
monthly. During the six-month period ended December 31, 1995, CoreStates
Advisers voluntarily waived a portion of their fees in order to assist the Funds
in maintainingy competitive expense ratios.
CoreStates Bank serves as Custodian to the Company. No fees are being
paid to CoreStates Bank for such Services. Sub-Advisory services are provided to
the CoreStates Adviser for Value Equity Fund by Cashman, Farrell and Associates
and for the International Growth Fund by Martin Currie, Inc. (The
"Sub-Advisers") pursuant to a sub-advisory agreement dated December 5, 1989.
Sub-Advisory services are provided for the Global Bond Fund by Alpha Global
Corporation pursuant to a sub-advisory agreement dated June 30, 1994. Under the
terms of such agreements, the Sub-Advisers are entitled to receive a fee from
CoreStates Advisers. Such a fee is computed daily and paid monthly. CoreStates
Advisers is responsible for the supervision, and payment of fees to the
Sub-Adviser in connection with their services.
4. Administrative, Transfer Agent and Distribution Services
Pursuant to an Administration agreement dated October 30, 1992, as
amended June 1, 1995, SEI Financial Management Company (SEI) acts as the
Portfolio's Administrator. Under the terms of such agreement, SEI is entitled to
receive an annual fee of 0.25% on the average net assets of the Portfolios. Such
fee is computed daily and paid monthly. SEI voluntarily waives a portion of
their fees in order to assist the Funds in maintaining competitive expense
ratios.
Effective for the period July 1, 1995 to November 16, 1995, SEI
Financial Management Corporation acted as the Transfer Agent of the Trust.
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 and
shareholder servicing for the Portfolios.
On November 2, 1992, SEI Financial Services (SFS), a wholly owned
subsidiary of SEI, became the "Portfolios" exclusive Distributor pursuant to a
distribution agreement dated October 30, 1992.
The Company has adopted a Distribution Plan (the Plan) for those
Portfolios offering Series B shares. The Plan provides for the payment by the
Company to the Distributor of up to 0.25% of the daily net assets of each Series
B Portfolio to which the Plan is applicable. The Distributor is authorized to
use this fee as compensation for its distribution related services and as
payment to certain securities broker/dealers and financial institutions which
enter into shareholder servicing agreements or broker agreements with the
Distributor. The Portfolios paid approximately $404,000 to affiliated brokers
for commissions earned on the sales of the Funds.
Certain officers of the Company are also officers of the Administrator.
Such officers are paid no fees by the Portfolios.
The Portfolios have paid legal fees to a law firm in which the Secretary
of the Company is partner.
77
<PAGE>
Notes to Financial Statements (continued)
5. Investment Transactions
During the six-month period ended December 31, 1995, purchases of
securities and proceeds from sales of securities, other than temporary
investments in short-term securities, were as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------ ------------------------------
Purchases Sales
------------------------------ ------------------------------
U.S. U.S.
Portfolio Investment Transactions (000) Government Other Total Government Other Total
---------- ------ ------ ---------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Growth Equity Fund -- 41,531 41,531 -- 38,321 38,321
Value Equity Fund -- 31,169 31,169 -- 39,138 39,138
Equity Index -- 17,216 17,216 -- 13,192 13,192
International Growth Fund -- 17,037 17,037 -- 21,332 21,332
Balanced 2,304 17,924 20,228 2,500 18,805 21,305
Government Income 6,236 3,868 10,104 5,025 3,389 8,414
Intermediate Bond Fund 49,057 4,990 54,046 41,571 11,592 53,163
Intermediate Municipal Fund -- -- -- -- 149 149
Global Bond -- 10,031 10,031 -- 5,557 5,557
Pennsylvania Municipal Bond Fund -- 465 465 -- 133 133
New Jersey Municipal Bond Fund -- 197 197 -- 161 161
</TABLE>
- --------------------------------------------------------------------------------
At June 30, 1995, the Growth Equity Fund, Balanced Fund, Government
Income Fund, Intermediate Bond Fund, Intermediate Municipal Bond Fund, Global
Bond Fund, Cash Reserve and Tax-Free Reserve had capital loss carryforwards for
federal tax purposes of approximately $1,520,000, $3,000, $240,000, $1,509,000,
$38,000, $1,203,000, $23,000 and $48,000, respectively, resulting from security
sales. For tax purposes, the losses in the Funds can be carried forward for a
maximum of eight years to offset any net realized capital gains. The Income
Fund, Intermediate Bond Fund, Intermediate Municipal Bond Fund, Global Bond
Fund, Cash Reserve and Tax-Free Reserve Funds expires in 2003.
On December 31, 1995 the total cost of securities and the net realized
gains or losses on securities sold for Federal income tax purposes was not
materially different from amounts reported for financial purposes. The aggregate
gross unrealized gain or loss on securities at December 31, 1995 for each
portfolio within the CoreFunds is as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------- ------------ -------
Aggregate Aggregate
Gross Gross
Aggregate Gross Unrealized Gain Loss (000) Appreciation Depreciation Net
------------ ------------ -------
<S> <C> <C> <C>
Growth Equity Fund $104,646 $ (83,234) $21,412
Value Equity Fund 33,213 (30,159) 3,054
Equity Index 131,904 (100,800) 31,104
International Growth Fund 15,298 (5,043) 10,255
Balanced 72,539 (61,886) 10,653
Government Income 14,936 (14,609) 327
Intermediate Bond Fund 62,255 (61,389) 866
Intermediate Municipal Fund 1,228 (1,208) 20
Global Bond 1,754 (41) 1,713
Pennsylvania Municipal Bond Fund 3,006 (2,826) 180
New Jersey Municipal Bond Fund 1,635 (1,543) 92
</TABLE>
- --------------------------------------------------------------------------------
78
<PAGE>
/ / CoreFund
6. Forward Foreign Currency Contracts
The International Growth Fund and Global Bond Fund enter into forward foreign
currency contracts as hedges against portfolio positions. Such contracts, which
protect the value of a Fund's investment securities against a decline in the
value of currency, do not eliminate fluctuations in the underlying prices of the
securities. They simply establish an exchange rate at a future date. Also,
although such contracts tend to minimize the risk of loss due to a decline in
the value of a hedged currency, at the same time they tend to limit any
potential gain that might be realized should the value of such foreign currency
increase. The following forward foreign currency contracts were outstanding at
December 31, 1995:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------- ----------- --------------
Unrealized
Contracts to In Exchange Appreciation
Maturity Date Deliver/Receive For (Depreciation)
------------- --------------- ----------- --------------
<S> <C> <C> <C>
International Growth Fund:
Foreign Currency Sales:
02/14/96 JY 1,781,246,580 $17,904,000 $ 537,720
=========
Global Bond Fund:
Foreign Currency Sales:
02/13/96-02/22/96 DM 7,936,000 $ 5,511,563 $ (40,774)
01/22/96-03/18/96 DK 17,840,000 3,239,801 21,525
01/22/96-02/22/96 FF 24,470,000 4,986,142 (22,338)
01/22/96-02/22/96 NL 2,681,000 1,695,100 18,795
01/22/96-03/18/96 UK 1,910,000 2,955,863 1,678
---------
$ (21,114)
=========
</TABLE>
- -------------------------------------------------------------------------------
Currency Legend
DM German Marks
DK Danish Kroner
FF French Francs
JY Japanese Yen
NL Netherlands Guilder
UK British Pounds Sterling
At December 31, 1995, the Global Bond Fund had unrealized gains on
closed but unsettled forward foreign currency contracts of $11,408 scheduled
to settle on January 31, 1996.
7. Concentration of Credit Risk
The Intermediate Municipal Bond Fund, Pennsylvania Municipal Bond Fund,
New Jersey Municipal Bond Fund, and Tax-Free Reserve invest in debt instruments
of municipal issuers. Although these Funds maintain a diversified portfolio,
with the exception of the Pennsylvania Municipal Bond Fund and the New Jersey
Municipal Bond Fund, the issuers ability to meet their obligations may be
affected by economic developments in a specific state or region.
The Intermediate Municipal Bond Fund, Pennsylvania Municipal Bond Fund,
New Jersey Municipal Bond Fund, and Tax-Free Reserve invest in securities which
include revenue bonds, tax exempt commercial paper, tax and revenue anticipation
notes, and general obligation bonds. At December 31, 1995, the percentage of
portfolio investments by each revenue source was as follows:
79
<PAGE>
Notes to Financial Statements (concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------ ------------ ---------- --------
Intermediate Pennsylvania New Jersey
Municipal Municipal Municipal
Bond Bond Bond Tax-Free
Fund Fund Fund Reserve
------------ ------------ ---------- --------
<S> <C> <C> <C> <C>
Revenue Bonds:
Education Bonds 20% 14% 19% 10%
Health Care Bonds -- 7 7 8
Transportation Bonds 21 7 3 4
Utility Bonds 13 14 14 4
Housing Bonds -- 11 -- 10
Pollution Control Bonds -- -- -- 11
Industrial Bonds -- 10 5 3
Other 4 -- 7 --
General Obligations 42 37 45 6
Tax Exempt Commercial Paper -- -- -- 34
Tax and Revenue Anticipation Notes -- -- -- 5
Tax Anticipation Notes -- -- -- 5
--- --- --- ---
100% 100% 100% 100%
</TABLE>
- -------------------------------------------------------------------------------
The rating of long-term debt as a percentage of total value of
investments at December 31, 1995 is as follows:
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------ ------------ ---------- ------ ----------- -----------
Pennsylvania New Jersey
Intermediate Intermediate Government Global Intermediate Intermediate
Bond Municipal Income Bond Municipal Municipal
Fund Fund Fund Fund Fund Fund
------------ ------------ ---------- ------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Standard & Poors Ratings:
AAA 71 66 96 71 74 40
AA -- 17 -- 12 10 23
AA+ -- 5 -- 11 -- 7
AA- 8 8 -- 2 8 12
A+ 2 -- -- 4 5 --
A 4 4 -- -- 3 --
NR 15 -- 4 -- -- 18
--- --- --- --- --- ---
100% 100% 100% 100% 100% 100%
</TABLE>
- -------------------------------------------------------------------------------
80
<PAGE>
/ / CoreFund
Many municipalities insure their obligations with insurance underwritten
by insurance companies which undertake to pay a holder, when due, the interest
and principal amount on an obligation if the issuer defaults on its obligation.
Although and insurance reduces the risk of loss due to default by issuer, there
is no assurance that the insurance company will meet its obligations. Also, some
of the securities have credit enhancements (letters of credit or guarantees
issued by third party domestic or foreign banks or other institutions). At
December 31, 1995, the percentage of securities with credit enhancements are as
follows:
---------------------------------------------------------------
-------- ---------
Letters
of Bond
Credit Insurance
------ ---------
Intermediate Municipal Fund -- 59.82
Pennsylvania Municipal Bond Fund -- 60.77
New Jersey Municipal Bond Fund -- 40.21
Tax-Free Reserve Fund 89.89 10.11
---------------------------------------------------------------
81
<PAGE>
NOTES
82
<PAGE>
NOTES
83
<PAGE>
NOTES
84
<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 Funds are not
deposits or obligations of, or guaranteed or endorsed by, CoreStates Bank, N.A.,
the parent corporation of each 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. Investments in shares of a mutual fund
involve risks, including the possible loss of principal. CoreStates Bank, N.A.
serves as custodian for the Funds.
CoreFunds, Inc.
/ /
Directors
Emil J. Mikity, Chairman
George H. Strong
Erin Anderson
Officers
David G. Lee, President
James W. Jennings, Secretary
Investment Adviser
CoreStates Investment Advisers, Inc.
Philadelphia, PA 19101
Administrator
SEI Financial Management Corporation
Wayne, PA 19087
Distributor
SEI Financial Services Company
Wayne, PA 19087
Legal Counsel
Morgan, Lewis & Bockius
Philadelphia, PA 19103
Auditors
Ernst & Young LLP
Philadelphia, PA 19103
Investment Adviser
[CORESTATES LOGO]
CoreStates
CoreStates
Investment Advisers
/ /
CoreFund
Family of
Mutual Funds
Equity Funds
/ / Growth Equity
/ / Value Equity
/ / Equity Index
/ / International Growth
/ / Balanced
Fixed Income Funds
/ / Government Income
/ / Intermediate Bond
/ / Intermediate Municipal Bond
/ / Global Bond
/ / Pennsylvania Municipal Bond
/ / New Jersey Municipal Bond
Money Market Funds
/ / Cash Reserve
/ / Treasury Reserve
/ / Tax-Free Reserve
Shareholder Services
For more information on opening a new account, making changes to existing
accounts, purchasing, exchanging or redeeming shares, or other investor
services, call CoreFund at 1-800-355-CORE(2673).
COR-F-043-03
<PAGE>
APPENDIX A -- Description of Graphics
GRAPHIC 1 --
Appears on the Front Cover of the Printed Document.
It is a photograph of many eggs with a golden egg in the center.
GRAPHIC 2--
Appears on the Inside Front Cover of the Printed Document.
It is a photograph of many eggs with a golden egg in the center.
GRAPHIC 3 --
Picture of Emil J. Mikity, Chairman of the Board of Directors of
the CoreFunds sitting in a chair.
GRAPHIC 4 --
Bar graph depicting Capital Market Returns for the six months ended December 31,
1995 and the year ended December 31, 1995. The plot points are as follows:
<TABLE>
<CAPTION>
Index Six Months Ended Year Ended
December 31, 1995 December 31, 1995
----------------- -----------------
<S> <C> <C>
DJIA 13.74 36.98
S&P 500 14.45 37.57
SBBI 6.32 18.55
JPMGB (US$H) 7.36 17.91
EAFE 8.36 11.17
</TABLE>
GRAPHIC 5 --
Picture of Mark E. Stalnecker, Chairman and Chief Investment Officer of
CoreStates Investment Advisers, Inc. leaning against a chair.
GRAPHIC 6 --
Bar graph depicting Stocks - International vs. Domestic Returns for 1, 2, 3, 4,
& 5 years for the S&P 500 and the EAFE indices. The plot points are as follows:
<TABLE>
<CAPTION>
1 year 2 year 3 year 4 year 5 year
Index Total Return Total Return Total Return Total Return Total Return
- ----- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
S&P 500 37.57 18.05 15.33 13.35 16.59
EAFE 11.17 9.47 16.68 8.68 9.36
</TABLE>
A yield curve in the form of a line graph depicting the three month, six month,
one year, two year, three year, five year, ten year and thirty year yields of
both a U.S. Treasury Note maturing June 30, 1995 and a U.S. Treasury Note
maturing December 31, 1995. The plot points are as follows:
U.S. Treasury Note U.S. Treasury Note
(maturing (maturing
June 30, 1995) December 31, 1995)
Time to Maturity Yield Yield
Three Month 5.63 5.07
Six Month 5.58 5.15
One Year 5.62 5.13
Two Year 5.79 5.15
Three Year 5.85 5.21
Five Year 5.97 5.37
Ten Year 6.20 5.57
Thirty Year 6.62 5.95
GRAPHIC 8 --
A picture of a computer chip.
GRAPHIC 9 --
A picture of foreign currency.
GRAPHIC 10 --
A picture of optic fibers.
GRAPHIC 11 -
Pie chart depicting maturity diversification as of December 31, 1995 for the
Government Income Fund. The breakdown is as follows:
Under 1 year: 24%
1 - 5 years: 59%
6 - 10 years: 17%
GRAPHIC 12 --
A picture of a broken drug capsule with its contents spilling out.
GRAPHIC 13 --
Pie chart depicting quality diversification as of December 31, 1995 for the
Intermediate Bond Fund. The breakdown is as follows:
NR: 15%
A: 6%
AA: 8%
AAA: 71%
GRAPHIC 14 --
Pie chart depicting quality diversification as of December 31, 1995 for the
Intermediate Municipal Bond Fund. The breakdown is as follows:
NR: 8%
A: 12%
AA: 21%
AAA: 59%
GRAPHIC 15 --
A picture of Planet Earth.
GRAPHIC 16 --
Pie chart depicting quality diversification as of December 31, 1995 for the
Global Bond Fund. The breakdown is as follows:
A: 4%
AA: 25%
AAA: 71%
GRAPHIC 17 --
Pie chart depicting quality diversification as of December 31, 1995 for PA
Municipal Bond Fund. The breakdown is as follows:
NR: 1%
A: 8%
AA: 18%
AAA: 73%
GRAPHIC 18 --
Pie chart depicting quality diversification as of December 31, 1995 for NJ
Municipal Bond Fund. The breakdown is as follows:
NR: 20%
A: 4%
AA: 38%
AAA: 38%
GRAPHIC 19 --
Picture of a woman taking money out of an ATM.
GRAPHIC 20 --
Pie chart depicting asset allocation as of December 31, 1995 for the Growth
Equity Fund. The breakdown is as follows:
Cash Equivalents: 3%
Chemical & Drug: 19%
Consumer Products: 15%
Durable Goods: 33%
Financial: 19%
Retail: 1%
Utilities: 6%
Miscellaneous: 4%
GRAPHIC 21 --
Pie chart depicting asset allocation as of December 31, 1995 for the Value
Equity Fund. The breakdown is as follows:
Building & Construction: 2%
Media: 3%
Chemicals & Drugs: 8%
Durable Goods: 35%
Financial: 18%
Consumer Products: 14%
Energy: 8%
Retail: 6%
Miscellaneous: 6%
GRAPHIC 22 --
Pie chart depicting asset allocation as of December 31, 1995 for the Equity
Index Fund. The breakdown is as follows:
Cash Equivalents: 1%
Chemicals & Drugs: 13%
Consumer Products: 17%
Durable Goods: 24%
Finance: 13%
Metals & Mining: 2%
Energy: 10%
Retail: 5%
Miscellaneous: 4%
Utilities: 11%
GRAPHIC 23 --
Pie chart depicting country allocation as of December 31, 1995 for the
International Growth Fund. The breakdown is as follows:
Cash Equivalents: 3%
Japan: 33%
United Kingdom: 17%
Other Pacific Rim: 20%
Europe: 18%
Smaller Markets: 11%
GRAPHIC 24 --
Pie chart depicting security type allocation as of December 31, 1995 for the
Balanced Fund. The breakdown is as follows:
U.S. Agency Mortgage Backed Bonds: 2%
U.S. Government Agency Mortgage Backed Bonds: 2%
Corporate Obligations: 9%
Cash Equivalents: 9%
Common Stock: 60%
Preferred Stock: 1%
U.S. Treasury Obligations: 16%
U.S. Agency Backed Bonds: 1%
GRAPHIC 25 --
Pie chart depicting security type allocation as of December 31, 1995 for the
Government Income Fund. The breakdown is as follows:
Cash Equivalents: 4%
U.S. Treasury Obligations: 23%
U.S. Government Backed Bonds: 65%
U.S. Agency Backed Bonds: 8%
GRAPHIC 26 --
Pie chart depicting security type allocation as of December 31, 1995 for the
Intermediate Bond Fund. The breakdown is as follows:
Corporate Bonds: 15%
Non-Agency Mortgage Backed Bonds: 3%
Cash Equivalents: 16%
Asset Backed Securities: 25%
U.S. Treasury Obligations: 41%
U.S. Government Backed Bonds: 3%
U.S. Agency Backed Bonds: 5%
GRAPHIC 27 --
Pie chart depicting security type allocation as of December 31, 1995 for the
Intermediate Municipal Bond Fund. The breakdown is as follows:
Pre-refunded Securities: 17%
General Obligations: 42%
Revenue Bonds: 41%
GRAPHIC 28 --
Pie chart depicting country allocation as of December 31, 1995 for the Global
Bond Fund. The breakdown is as follows:
United Kingdom: 9%
Australia: 5%
Netherlands: 5%
New Zealand: 5%
Other: 5%
United States: 28%
Germany: 17%
France: 16%
Denmark: 10%
GRAPHIC 29 --
Pie chart depicting security type allocation as of December 31, 1995 for the
Cash Reserve Fund. The breakdown is as follows:
U.S. Government Securities: 8%
Corporate Securities: 80%
Cash Equivalents: 13%
GRAPHIC 30 --
Pie chart depicting security type allocation as of December 31, 1995 for the
Tax-Free Reserve Fund. The breakdown is as follows:
Anticipation Notes: 9%
Pre-refunded Securities: 2%
General Obligations: 6%
Tax Exempt Commercial Paper: 35%
Revenue Bonds: 48%
