COREFUNDS, INC.
Elite Cash Reserve Fund
Elite Government Reserve Fund
Elite Treasury Reserve Fund
Elite Tax-Free Reserve Fund
Supplement Dated April 1, 1997
to the Prospectus dated November 1, 1996
This supplement contains new information beyond that contained in the
Prospectus, and should be read and retained in conjunction with such prospectus.
Effective April 1, 1997, CoreStates Investment Advisors, Inc. will reduce its
fee waivers on the Class Y and Class C shares of the Elite Funds. In connection
with this change, the following information replaces the "Transaction and
Operating Expense Tables" set forth on pages 3 and 4 of the Funds' Prospectus:
Transaction and Operating Expense Table
The purpose of the following tables is to help you understand the various costs
and expenses that you, as a shareholder, will bear directly or indirectly in
connection with an investment in Class Y or Class C shares of the Funds. The
information contained in the tables should not be considered a representation of
future expenses. Actual expenses may be more or less than those shown.
<TABLE>
<CAPTION>
Elite Elite Elite Elite Tax-
Cash Government Treasury Free Reserve
Reserve Reserve Reserve
<S> <C> <C> <C> <C>
Class Y Shares
Shareholder Transaction Expenses
Maximum Sales Load Imposed on Purchases............................... none none none none
Maximum Sales Load Imposed on Reinvested Dividends.................... none none none none
Deferred Sales Load................................................... none none none none
Redemption Fee........................................................ none none none none
Exchange Fee.......................................................... none none none none
Annual Fund Operating Expenses* (as a percentage of net assets):
Investment Advisory Fees After Fee Waivers(1)......................... .08% .08% .08% .08%
12b-1 Fees............................................................ .00% .00% .00% .00%
Other Expenses(2)..................................................... .12% .12% .12% .12%
Net Annual Fund Operating Expenses(3)................................. .20% .20% .20% .20%
Example
You would pay the following 1 year $ 2 $ 2 $ 2 $ 2
expenses on a $1,000 investment, 3 year 6 6 6 6
assuming (1) a 5% annual return 5 year 11 11 11 11
and (2) redemption at the end 10 year 26 26 26 26
of each time period.
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Fees shown have been restated to reflect current fees.
1 Absent voluntary waivers, the Adviser's investment advisory fees are
calculated at the annual rate of .20% of the average net assets of each
Fund.
2 Includes (among others) administrative, legal, auditing, and printing fees.
Absent voluntary waivers, the Administrator's fee is calculated at the
annual rate of .25% of each Fund's average net assets.
3 The Adviser and the Administrator have voluntarily waived a portion of
their fees in order to assist the Funds in maintaining a competitive
expense ratio. The expense ratios noted herein are net of the investment
advisory and administrative fee waivers expected to be in effect during the
fiscal period ending June 30, 1997. Absent any fee waivers, such expense
ratios would be .50%, .50%, .50% and .50% for the Elite Cash Reserve, Elite
Government Reserve, Elite Treasury Reserve and Elite Tax-Free Reserve,
respectively.
WA02A/9345.2
<PAGE>
<TABLE>
<CAPTION>
Elite Elite Elite Elite Tax-
Cash Government Treasury Free Reserve
Reserve Reserve Reserve
<S> <C> <C> <C> <C>
Class C Shares
Shareholder Transaction Expenses
Maximum Sales Load Imposed on Purchases............................... none none none none
Maximum Sales Load Imposed on Reinvested Dividends.................... none none none none
Deferred Sales Load................................................... none none none none
Redemption Fee........................................................ none none none none
Exchange Fee.......................................................... none none none none
Annual Fund Operating Expenses* (as a percentage of net assets):
Investment Advisory Fees After Fee Waivers(1)......................... .08% .08% .08% .08%
12b-1 Fees............................................................ .25% .25% .25% .25%
Other Expenses(2)..................................................... .12% .12% .12% .12%
Net Annual Fund Operating Expenses(3)................................. .45% .45% .45% .45%
Example
You would pay the following 1 year $ 5 $ 5 $ 5 $ 5
expenses on a $1,000 investment, 3 year 14 14 14 14
assuming (1) a 5% annual return 5 year 25 25 25 25
and (2) redemption at the end 10 year 57 57 57 57
of each time period.
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Fees shown have been restated to reflect current fees.
1 Absent voluntary waivers, the Adviser's investment advisory fees are
calculated at the annual rate of .20% of the average net assets of each
Fund.
2 Includes (among others) administrative, legal, auditing, and printing fees.
Absent voluntary waivers, the Administrator's fee is calculated at the
annual rate of .25% of each Fund's average net assets.
3 The Adviser and the Administrator have voluntarily waived a portion of
their fees in order to assist the Funds in maintaining a competitive
expense ratio. The expense ratios noted herein are net of investment
advisory and administrative fee waivers expected to be in effect during the
fiscal period ending June 30, 1997. Absent any fee waivers, such expense
ratios would be .75%, .75%, .75% and .75% for Elite Cash Reserve, Elite
Government Reserve, Elite Treasury Reserve and Elite Tax-Free Reserve,
respectively.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
WA02A/9345.2
<PAGE>
