CoreFunds,Inc.
- --------------------------------------------------------------------------------
ELITE TREASURY RESERVE
ELITE CASH RESERVE
ELITE TAX-FREE RESERVE
ANNUAL REPORT TO SHAREHOLDERS
June 30, 1998
<PAGE>
STATEMENT OF NET ASSETS COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TREASURY RESERVE (000) (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 26.0%
U.S. Treasury Bills+
5.050%, 07/02/98 ................... $5,000 $ 4,999
5.335%, 08/20/98 ................... 2,000 1,985
U.S. Treasury Notes
5.125%, 12/31/98 ................... 3,000 2,997
5.875%, 01/31/99 ................... 3,000 3,007
5.250%, 07/31/98 ................... 500 500
5.875%, 08/15/98 ................... 500 500
6.125%, 08/31/98 ................... 500 500
6.000%, 09/30/98 ................... 500 501
5.875%, 10/31/98 ................... 500 500
5.500%, 11/15/98 ................... 2,000 1,998
5.625%, 11/30/98 ................... 3,000 2,999
U.S. Treasury STRIPS+
5.755%, 08/15/98 ................... 500 497
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $20,983) .................................. 20,983
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 74.2%
First National Bank of Chicago
5.75%, dated 06/30/98, matures
07/01/98, repurchase price
$20,103,210 (collateralized by
various U.S. Treasury Notes,
ranging in par value from
$2,345,000-$17,210,000,
5.875%-6.625%, 02/15/00-03/31/02;
total market value $20,546,470) ........ 20,100 20,100
Goldman Sachs 5.650%, dated 06/30/98,
matures 07/01/98, repurchase price
$4,000,628 (collateralized by U.S.
Treasury Note, par value $3,940,000,
6.375%, 03/31/01; market
value $4,090,485) ....................... 4,000 4,000
Hong Kong Shanghai Bank
5.40%, dated 06/30/98, matures
07/01/98, repurchase price
$144,022 (collateralized by
U.S. Treasury Note, par value
$145,000, 5.875%, 08/31/99;
market value $148,436) ................... 144 144
Hong Kong Shanghai Bank
5.65%, dated 06/30/98,matures
07/01/98, repurchase price
$3,800,596 (collateralized
by various U.S. Treasury Notes,
ranging in par value from
$505,000-$3,250,000, 6.375%-6.500%,
05/31/01-08/15/02; total market
value $3,887,920) ........................ 3,800 3,800
1
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TREASURY RESERVE (000) (000)
- --------------------------------------------------------------------------------
Morgan Stanley 5.680%, dated
06/30/98, matures 07/01/98,
repurchase price $3,000,473
(collateralized by U.S. Treasury
Note, par value $2,825,000,
7.875%, 08/15/01;
market value $3,098,743) ................. $3,000 $ 3,000
Morgan Stanley 5.650%, dated
06/30/98, matures 07/01/98,
repurchase price $1,000,157
(collateralized by U.S.
Treasury Note, par value
$1,005,000, 5.875%, 11/30/01;
market value $1,021,460) ................. 1,000 1,000
Societe Generale 5.850%, dated
06/30/98, matures 07/01/98,
repurchase price $20,103,266
(collateralized by various
U.S. Treasury Notes,
ranging in par value from
$2,750,000-$17,515,000,
5.500%-5.875%, 11/15/99-
02/29/00; total market
value $20,529,457) ....................... 20,100 20,100
State Street Bank & Trust
5.750%, dated 06/30/98, matures
07/01/98, repurchase price
$4,000,639 (collateralized by
various U.S. Treasury Notes,
ranging in par value from
$1,835,000-$2,165,000,
6.250%, 03/31/99; total
market value $4,085,284) ................. 4,000 4,000
Swiss Bank 5.850%, dated
06/30/98, matures 07/01/98,
repurchase price $3,800,618
(collateralized by U.S. Treasury
Note, par value $3,800,000,
5.625%, 02/28/01; market value
$3,884,519) .............................. 3,800 3,800
-------
TOTAL REPURCHASE AGREEMENTS
(Cost $59,944) 59,944
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.2%
(Cost $80,927) ................................... 80,927
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - (0.2%) ............. (191)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001 par value --
250 million authorized) based on
75,721,438 outstanding shares ....................... 75,722
Portfolio Shares of Class C ($.001 par value--
250 million authorized) based on
5,015,739 outstanding shares ........................ 5,016
Accumulated Net Realized Loss on Investments ........... (2)
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% .............................. $80,736
- --------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE ......... $1.00
- --------------------------------------------------------------------------------
+ YIELD TO MATURITY
STRIPS -- SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
See accompanying notes to financial statements.
2
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE CASH RESERVE (000) (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER - 73.6%
AUTOMOTIVE - 3.0%
Ford
5.571%, 07/06/98 .................... $ 3,000 $ 2,998
5.567%, 08/05/98 .................... 5,000 4,973
5.573%, 08/21/98 .................... 10,000 9,922
-------
17,893
-------
BANKS - 9.9%
Bank One Funding
5.555%, 07/15/98 .................... 10,000 9,979
CDC
5.554%, 08/07/98 .................... 10,000 9,943
Credit Suisse
5.572%, 09/03/98 .................... 10,000 9,902
Dresdner
5.552%, 08/04/98 .................... 10,000 9,948
National Australia
5.541%, 07/20/98 .................... 10,000 9,971
5.552%, 08/11/98 .................... 10,000 9,937
-------
59,680
-------
CHEMICALS - 3.3%
Dupont
5.556%, 08/04/98 .................... 10,000 9,948
5.558%, 08/26/98 .................... 10,000 9,915
-------
19,863
-------
COMMUNICATIONS EQUIPMENT - 3.3%
Motorola
5.521%, 07/13/98 .................... 5,000 4,991
5.536%, 07/14/98 .................... 10,000 9,980
5.558%, 09/25/98 .................... 5,000 4,934
-------
19,905
-------
DRUGS - 1.6%
Pfizer
5.525%, 07/27/98 .................... 10,000 9,960
-------
3
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE CASH RESERVE (000) (000)
- --------------------------------------------------------------------------------
ELECTRICAL SERVICES - 1.6%
Teco
5.555%, 08/11/98 .................... $10,000 $ 9,938
--------
FINANCIAL SERVICES - 32.1%
American Express
5.570%, 07/28/98 .................... 10,000 9,959
5.572%, 08/14/98 .................... 10,000 9,933
Ameritech Capital Funding
5.531%, 07/02/98 .................... 10,000 9,998
Asset Securitization Corp.
5.575%, 08/07/98 .................... 10,000 9,943
5.580%, 08/14/98 .................... 10,000 9,933
Ciesco
5.535%, 07/17/98 .................... 10,000 9,976
5.567%, 08/27/98 .................... 10,000 9,913
CIT Group Holdings
5.577%, 09/02/98 .................... 10,000 9,904
5.575%, 09/04/98 .................... 10,000 9,901
Eureka Securitization
5.569%, 08/13/98 .................... 10,000 9,934
5.578%, 08/26/98 .................... 10,000 9,912
Merrill Lynch
5.597%, 09/21/98 .................... 5,000 4,937
5.592%, 10/16/98 .................... 15,000 14,758
NCAT
5.566%, 08/03/98 .................... 10,000 9,950
Norwest
5.541%, 07/07/98 .................... 10,000 9,991
5.439%, 08/04/98 .................... 10,000 9,948
Paccar
5.548%, 08/20/98 .................... 10,000 9,924
5.511%, 10/23/98 .................... 5,000 4,916
Swedish Export
5.536%, 07/14/98 .................... 10,000 9,980
5.530%, 08/06/98 .................... 10,000 9,946
--------
193,656
--------
4
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE CASH RESERVE (000) (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 0.8%
Campbell Soup
5.629%, 10/05/98 .................... $ 5,000 $ 4,928
--------
INDUSTRIAL - 3.3%
General Electric Capital
5.881%, 07/09/98 ........................ 5,000 4,994
5.531%, 09/02/98 ........................ 5,000 4,953
5.646%, 09/21/98 ........................ 10,000 9,874
--------
19,821
--------
INSURANCE - 4.9%
A1 Credit
5.545%, 08/20/98 .................... 10,000 9,924
Met Life
5.539%, 07/28/98 .................... 10,000 9,959
5.570%, 07/28/98 .................... 10,000 9,958
--------
29,841
--------
PETROLEUM REFINING - 3.3%
Chevron
5.554%, 09/08/98 .................... 20,000 19,790
--------
TELEPHONES & TELECOMMUNICATION - 6.5%
Bell Atlantic
5.556%, 08/04/98 .................... 19,755 19,652
Southwest Bell
5.556%, 08/06/98 .................... 10,000 9,945
5.553%, 08/10/98 .................... 10,000 9,939
--------
39,536
--------
TOTAL COMMERCIAL PAPER
(Cost $444,811) 444,811
- ----------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE BACKED BONDS - 2.5%
FHLB
5.605%, 01/29/99 .................... 10,000 10,000
5
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE CASH RESERVE (000) (000)
- --------------------------------------------------------------------------------
FNMA
5.596%, 10/20/98 .................... $ 5,000 $ 4,999
--------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS
(Cost $14,999) 14,999
- ----------------------------------------------------------------------------
MORTGAGE RELATED - 1.8%
Centauri Credit USA (A) (B)
5.690%, 07/15/98 .................... 10,000 10,000
Key Auto Finance Trust, Series 1997-2,
Class A1 (A)
5.835%, 07/15/98 .................... 576 577
--------
TOTAL MORTGAGE RELATED
(Cost $10,577) 10,577
- ----------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 6.0%
Abbey National Treasury Services
5.590%, 02/03/99 .................... 5,000 4,999
Beta Finance Private Placement
5.690%, 03/05/99 .................... 10,000 10,000
Credit Suisse First Boston (A) (B)
5.670%, 07/01/98 .................... 5,000 5,000
Morgan Stanley (A)(B)
5.788%, 09/28/98 .................... 10,000 10,000
Paccar Financial
5.770%, 09/15/98 .................... 3,500 3,499
Pitney Bowes Credit
6.305%, 09/23/98 .................... 2,900 2,903
--------
TOTAL CORPORATE OBLIGATIONS
(Cost $36,401) 36,401
- ----------------------------------------------------------------------------
MASTER NOTES - 1.2%
Associates Corporation of
North America (A) (B)
5.497%, 07/01/98 .................... 6,984 6,984
--------
TOTAL MASTER NOTES
(Cost $6,984) 6,984
- ----------------------------------------------------------------------------
INSURANCE FUNDING AGREEMENTS - 0.8%
Allstate (A)
5.696%, 07/30/98 .................... 5,000 5,000
--------
TOTAL INSURANCE FUNDING AGREEMENTS
(Cost $5,000) 5,000
- ----------------------------------------------------------------------------
6
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE CASH RESERVE (000) (000)
- --------------------------------------------------------------------------------
TIME DEPOSITS - 3.3%
Bank Montreal
6.000%, 07/01/98 .................... $ 5,000 $ 5,000
BVB
6.000%, 07/01/98 .................... 5,000 5,000
Den Danske
6.375%, 07/01/98 .................... 5,000 5,000
Republic NY
6.000%, 07/01/98 .................... 5,000 5,000
--------
TOTAL TIME DEPOSITS
(Cost $20,000) 20,000
- ----------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 8.1%
Deutsche Bank
5.520%, 08/03/98 .................... 20,000 19,997
Nationsbank
5.550%, 02/11/99 .................... 7,000 6,998
Societe Generale
5.765%, 10/09/98 .................... 3,000 2,999
5.820%, 04/01/99 .................... 5,000 4,999
Swiss Bank
5.825%, 10/02/98 .................... 3,000 3,000
5.880%, 11/20/98 .................... 3,000 3,000
5.650%, 03/05/99 .................... 8,000 7,997
--------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $48,990) ................................... 48,990
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 2.8%
Morgan Stanley
5.680%, dated 6/30/98, matures
7/1/98, repurchase price
$2,000,316 (collateralized by
U.S. Treasury Note, par value
$1,860,000, 7.875%, 08/15/01;
market value $2,040,234) ................ 2,000 2,000
NationsBank
6.00%, dated 06/30/98, matures
07/01/98, repurchase price
$15,002,500 (collateralized
by FNMA, par value $15,560,000,
6.00%, 05/01/13; market
value $15,380,088) ...................... 15,000 15,000
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $17,000) ................................... 17,000
- --------------------------------------------------------------------------------
7
<PAGE>
STATEMENT OF NET ASSETS (CONCLUDED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
VALUE
ELITE CASH RESERVE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.1%
(Cost $604,762) .................................. $604,762
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - (0.1%) ............. (695)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001 par value --
750 million authorized) based on
604,044,653 outstanding shares ...................... 604,045
Portfolio Shares of Class C ($.001 par value --
750 million authorized) based on
29,833 outstanding shares ........................... 30
Accumulated Net Realized Loss on Investments ........... (8)
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% .............................. $604,067
- --------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE ......... $1.00
- --------------------------------------------------------------------------------
(A) VARIABLE RATE SECURITY-- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 1998
(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.
FHLB -- FEDERAL HOME LOAN BANK
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
8
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 99.0%
ALABAMA - 7.4%
Alabama State Public School and
College Revenue Bond
5.500%, 10/01/98 .................... $1,000 $ 1,004
Mobile Alabama (TECP)
3.500%, 07/14/98 .................... 4,900 4,900
Montgomery Alabama (TECP)
3.850%, 07/06/98 .................... 3,000 3,000
3.500%, 07/13/98 .................... 3,000 3,000
North Alabama Environmental Improvement
Authority Revenue Bond for Reynold
Metals Project (A) (B)
4.000%, 07/01/98 .................... 1,500 1,500
--------
13,404
--------
ALASKA - 4.8%
City of Valdez Alaska (TECP)
3.650%, 07/07/98 .................... 1,900 1,900
3.600%, 07/10/98 .................... 1,400 1,400
3.600%, 08/07/98 .................... 2,200 2,200
3.650%, 08/10/98 .................... 1,500 1,500
3.750%, 08/14/98 .................... 1,700 1,700
--------
8,700
--------
ARIZONA - 2.2%
Arizona State, Maricopa
County Regional Area
Road Funding (TRAN)
7.400%, 07/01/98 .................... 2,100 2,100
Flagstaff Arizona (TECP)
3.650%, 08/12/98 .................... 750 750
Maricopa County, Pollution
Control Authority Revenue Bond,
Series E (A) (C)
3.800%, 07/01/98 .................... 1,100 1,100
--------
3,950
--------
9
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
COLORADO - 2.3%
Denver Colorado Housing (A)
3.500%, 07/07/98 .................... $2,800 $ 2,800
Moffat County, Colorado
Pollution Control
Revenue Bond (A) (B)
3.650%, 07/07/98 .................... 1,400 1,400
--------
4,200
--------
DELAWARE - 0.4%
Delaware State (TECP)
3.650%, 08/12/98 .................... 750 750
--------
DISTRICT OF COLUMBIA - 0.8%
District of Columbia Revenue
Bond American University
Issue, Series A (A)
3.600%, 07/01/98 .................... 600 600
District of Columbia,
Series A-5 (A) (B)
4.000%, 07/01/98 .................... 900 900
--------
1,500
--------
FLORIDA - 1.5%
Broward County, Florida Housing
Finance Authority
Multi-Family Housing
Revenue Landings Inverray
Apartments Project (A) (B)
3.600%, 07/07/98 .................... 600 600
Sunshine State, Florida (AMBAC)
3.600%, 07/01/98 .................... 2,000 2,000
--------
2,600
--------
GEORGIA - 3.9%
Georgia State, Municipal
Electric Authority
Revenue Bond (A) (B)
3.400%, 07/07/98 .................... 3,405 3,405
Hapeville, Georgia Industrial
Development Authority
Revenue Bond for Hapeville
Hotel Project (A) (B) (C)
4.000%, 07/01/98 .................... 600 600
Meag Power Project
3.600%, 07/08/98 .................... 3,000 3,000
--------
7,005
--------
10
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
ILLINOIS - 7.0%
Chicago Illinois Metropolitan Water
Reclamation District GO Bond
7.250%, 01/01/99 .................... $2,475 $ 2,520
Chicago Illinois O'Hare Airport
Revenue Bond (A) (B)
3.500%, 07/07/98 .................... 1,200 1,200
Illinois Development Financial
Authority Pollution Control
Revenue Bond for Amoco Oil
Company Project (A) (B)
3.800%, 07/01/98 .................... 600 600
Illinois State Toll Highway
Authority Revenue
Bond, Series B (A) (B)
3.400%, 07/07/98 .................... 5,800 5,800
Schaumburg Illinois
Multi-Family Housing
Revenue Bond (A) (B)
3.550%, 07/07/98 .................... 2,500 2,500
--------
12,620
--------
INDIANA - 5.0%
Gary, Indiana Environmental
Improvement Revenue
Bond for U.S. Steel
Project (A) (B) (C)
3.700%, 07/30/98 .................... 2,300 2,300
Marion Indiana Economic
Development-The
Synectic Partnership
Revenue Bond (A)
3.550%, 07/07/98 .................... 2,655 2,655
Sullivan Hoosiers
3.600%, 07/08/98 .................... 1,100 1,100
Sullivan Hoosiers (TECP)
3.600%, 08/13/98 .................... 2,000 2,000
Sullivan, Indiana (TECP)
3.800%, 07/07/98 .................... 1,000 1,000
--------
9,055
--------
KANSAS - 2.2%
Burlington, Kansas (TECP)
3.800%, 07/28/98 .................... 1,800 1,800
Johnson County, Kansas School
District No 512
Shawnee Mission GO Bond
5.850%, 10/01/98 .................... 2,000 2,010
11
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
Kansas City, Kansas Industrial
Development Revenue
Bond for PQ Corporation
Project (A) (B) (C)
3.900%, 07/01/98 .................... $ 100 $ 100
--------
3,910
--------
KENTUCKY - 3.0%
Mason County, Kentucky Pollution
Control Revenue Bond (B)
3.650%, 07/07/98 .................... 3,400 3,400
Mayfield, Kentucky Multi-City
Lease Revenue Bond
Kentucky League of Cities
Funding Project (A)
3.700%, 07/07/98 .................... 2,000 2,000
--------
5,400
--------
LOUISIANA - 6.5%
East Baton Rouge, Louisiana
Pollution Control
Revenue Bond (A) (B) (C)
4.000%, 07/01/98 .................... 1,200 1,200
Jefferson Parish Louisiana
Hospital Service
District No. 001 (A)
3.600%, 07/07/98 .................... 4,625 4,625
Jefferson Parish, Louisiana
Industrial Revenue Bond
for George J. Ackel, Sr.
Project (A) (B) (C)
3.650%, 07/07/98 .................... 3,750 3,750
Louisiana State Pollution Control
Authority Borden Project (A) (B)
3.500%, 07/06/98 .................... 2,200 2,200
--------
11,775
--------
MASSACHUSETTS - 0.6%
Massachusetts State Health and
Educational Facilities
Lahey Clinic Project, Series A 1
Pre-Refunded @ 102 (D)
7.625%, 07/01/98 .................... 950 969
--------
MICHIGAN - 2.0%
Delta County, Michigan Environmental
Improvement Revenue Bond for
Mead Escambia Paper Project,
Series C (A) (B)
4.000%, 07/01/98 .................... 600 600
Michigan State GO
5.400%, 09/30/98 .................... 3,000 3,005
--------
3,605
--------
12
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
MINNESOTA - 1.1%
Minnesota State, GO
Pre-Refunded @ 100 (D)
6.600%, 08/01/98 .................... $2,000 $ 2,005
--------
MISSISSIPPI - 0.7%
Jackson County, Port Facility
Revenue Bond for
Mississippi Chevron
USA Project, Series A
(AMBAC) (A) (B)
3.800%, 07/01/98 .................... 1,300 1,300
--------
MISSOURI - 3.6%
Claiborne County Missouri (TECP)
3.600%, 07/17/98 .................... 6,500 6,500
--------
MONTANA - 0.9%
Forsyth, Montana Pollution
Control Revenue Bond
Pacificorp Project,
Series 1988 (A) (B) (C)
3.800%, 07/01/98 .................... 1,600 1,600
--------
NEW HAMPSHIRE - 0.3%
New Hampshire State Industrial
Development Revenue
Bond for Oerlikon-Burlhe
Project (A) (B) (C)
3.700%, 07/30/98 .................... 600 600
--------
NEW MEXICO - 1.2%
Albuquerque, New Mexico GO,
Series A & B
4.600%, 07/01/98 .................... 2,150 2,150
--------
NEW YORK - 1.7%
New York, New York GO (A) (B)
4.100%, 07/01/98 .................... 2,000 2,000
New York, New York Fiscal 1994
Series A-10 (A)
3.650%, 07/01/98 .................... 1,000 1,000
--------
3,000
--------
NORTH CAROLINA - 0.8%
Wake County, North Carolina
Industrial Development
Authority Revenue Bond
for Carolina Power &
Light Project (A)(B)(C)
3.500%, 07/07/98 .................... 1,400 1,400
--------
13
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
OHIO - 1.3%
Evandale, Ohio Industrial
Development Authority
Revenue Bond (A) (B)
3.600%, 07/07/98 .................... $1,600 $ 1,600
Ohio State Air Quality
Revenue Bond (A) (B) (C)
3.900%, 07/01/98 .................... 600 600
Ohio State Water Development
Authority Environmental
Mead Company, Series B (A) (B)
3.900%, 07/01/98 .................... 200 200
--------
2,400
--------
OREGON - 0.8%
Port of Portland, Oregon Pollution
Control Revenue Bond for
Reynold Metals Project
(A) (B) (C)
4.000%, 07/01/98 .................... 100 100
Port of St. Helens, Oregon
Pollution Control
Revenue Bond (A) (B)
4.150%, 07/01/98 .................... 1,400 1,400
--------
1,500
--------
PENNSYLVANIA - 11.9%
Allegheny County, Pennsylvania
Hospital Development Revenue
Bond for Presbyterian
University Hospital
Project, Ser B3 (A) (B) (C)
3.600%, 07/01/98 .................... 430 430
Beaver County, Pennsylvania (TECP)
3.700%, 08/18/98 .................... 2,000 2,000
Beaver County, Pennsylvania Industrial
Development Authority Revenue
Bond for Duquesne Light Company
Project, Series A (A) (B) (C)
3.500%, 07/07/98 .................... 1,000 1,000
Beaver County, Pennsylvania Industrial
Development Authority Revenue Bond
for Duquesne Light Company Project,
Series B (A) (B) (C)
3.500%, 07/07/98 .................... 1,100 1,100
Delaware Valley Regional Finance
Authority Local Government
Revenue Bond, Series B
(A) (B) (C)
3.450%, 07/07/98 .................... 2,800 2,800
14
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PAR VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
Delaware Valley, Pennsylvania Regional
Government Finance (A)
3.450%, 07/07/98 .................... $1,300 $ 1,300
Lehigh County, Pennsylvania Industrial
Development Authority Pollution
Control (A) (B)
3.700%, 07/07/98 .................... 800 800
Lehigh County, Pennsylvania Industrial
Development Authority Revenue Bond
for Allegheny Electric Project,
Series A (A) (B) (C)
3.700%, 07/07/98 .................... 500 500
Montgomery County, Pennsylvania (TECP)
3.450%, 07/22/98 .................... 2,500 2,500
3.700%, 08/11/98 .................... 1,100 1,100
Northhampton County Moravian
Pennsylvania (A)
3.675%, 07/01/98 .................... 2,250 2,250
Pennsylvania State Higher Education
Facilities Authority Revenue Bond
for Carnegie Mellon University
Project, Series B (A) (B)
4.000%, 07/01/98 .................... 800 800
Pennsylvania State Higher Education
Facility Authority Revenue
Council of Independent
Colleges Series-A8 (A)
3.600%, 07/01/98 .................... 400 400
Pennsylvania State University Project
Notes, Series A
4.500%, 03/30/99 .................... 2,000 2,014
Washington County, Pennsylvania Industrial
Development Authority Revenue Bond
for Wetterau Finance
Company Project (A) (B)
3.600%, 07/07/98 .................... 2,500 2,500
--------
21,494
--------
TENNESSEE - 0.1%
Sullivan County, Tennessee Industrial
Development Authority Pollution
Control Revenue Bond
for Mead Project (A) (B)
3.950%, 07/01/98 .................... 200 200
--------
15
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
FACE
AMOUNT VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
TEXAS - 10.1%
Glen Rose Texas Independent
School District GO Bond
4.000%, 02/15/99 .................... $1,000 $ 1,003
Grapevine, Texas Industrial Development
Authority Revenue Bond for American
Airlines Project, Series B3
(A) (B) (C)
4.000%, 07/01/98 .................... 500 500
Grapevine, Texas Industrial
Development Corporation Revenue
Bond for American Airlines Project,
Series B2 (A) (B)
4.000%, 07/01/98 .................... 200 200
Grapevine, Texas Industrial Development
Authority Revenue Bond for American
Airlines Project, Series A3
(A) (B) (C)
4.000%, 07/01/98 .................... 200 200
Grapevine, Texas Industrial Development
Corporation American Airlines,
Series A1 (A) (B)
4.000%, 07/01/98 .................... 300 300
Gulf Coast County, Waste Disposal Authority,
Exxon Baytown Project (A)
3.450%, 07/01/98 .................... 800 800
Harris County Texas Toll Road Multimode
Series D Revenue Bond
Pre-Refunded at 103 (D)
8.300%, 08/15/98 .................... 1,000 1,035
North Central, Texas Health Facility
Development Corporation
Revenue Bond (A) (B)
4.000%, 07/01/98 .................... 195 195
Nueces County, Texas Health Facilities
Authority Revenue Bond for Driscoll
Children's Foundation Project (A) (B)
3.650%, 07/07/98 .................... 2,600 2,600
Tarrant County, Texas Housing Finance
Authority Revenue Bond for
Windcastle Project (A) (B)
3.650%, 07/07/98 .................... 1,034 1,034
Texas Small Business Industrial
Development Revenue Bond
(A)(B)(C)
3.650%, 07/07/98 .................... 1,300 1,300
Texas State, Series A
(TRAN) (A) (B) (C)
4.750%, 08/31/98 .................... 9,000 9,015
--------
18,182
--------
16
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
FACE
AMOUNT VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
UTAH - 2.3%
Intermountain Power Agency Utah
Power Supply Revenue Bond,
Series F (A) (B) (C)
3.450%, 09/15/98 .................... $3,000 $ 3,000
Utah State Board of Regents
Revenue Bond (A) (B) (C)
4.750%, 08/01/98 .................... 1,155 1,156
--------
4,156
--------
VERMONT - 0.6%
Vermont State Student Loan Revenue
Bond, Student Loan Assistance
Corporation Project (A) (B) (C)
3.700%, 07/30/98 .................... 1,140 1,140
--------
VIRGINIA - 6.7%
Mt. Vernon, Virginia (TECP)
3.700%, 08/04/98 .................... 2,000 2,000
3.700%, 08/06/98 .................... 9,000 9,000
Norfolk, Virginia GO Pre-Refunded at 102 (D)
7.000%, 10/01/98 .................... 1,000 1,028
Virginia State Peninsula Port Authority
Revenue Bond for Dominion Terminal
Project, Series 1987C (A) (B)
4.000%, 07/01/98 .................... 100 100
--------
12,128
--------
WEST VIRGINIA - 0.7%
Putnam County, West Virginia Industrial
Development Authority Revenue Bond
for FMC Corporation Project
Series 1981 (A) (B)
3.750%, 07/30/98 .................... 1,300 1,300
--------
WISCONSIN - 1.1%
Wisconsin Health and Educational
Facilities Wheaton Franciscan
Services Revenue Bond
Pre-Refunded at 102 (C) (D)
8.200%, 08/01/98 .................... 1,000 1,025
Wisconsin State GO
5.500%, 05/01/99 .................... 1,000 1,015
--------
2,040
--------
17
<PAGE>
STATEMENT OF NET ASSETS (CONCLUDED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
FACE
AMOUNT VALUE
ELITE TAX-FREE RESERVE (000) (000)
- --------------------------------------------------------------------------------
WYOMING - 3.5%
Converse County, Wyoming Tax-Free
Commercial Paper (C)
3.600%, 08/05/98 .................... $2,800 $ 2,800
Lincoln County, Wyoming Pollution
Control Revenue Bond,
Series 1984 B (A) (B)
4.000%, 07/01/98 .................... 600 600
Lincoln County, Wyoming Pollution
Control Revenue Bonds Exxon
Project, Series A (A) (B)
4.000%, 07/01/98 .................... 500 500
Platte County, Wyoming Pollution
Control Revenue Bond,
Series A (A) (B) (C)
3.800%, 07/01/98 .................... 1,000 1,000
Sublette County, Wyoming Pollution
Control Revenue Bond for Exxon
Project, Series 84 (A) (B)
3.800%, 07/01/98 .................... 1,400 1,400
--------
6,300
--------
TOTAL MUNICIPAL BONDS
(Cost $178,838) ................................... $178,838
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.0%
(Cost $178,838) ................................... 178,838
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - 1.0% ................ 1,891
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001 par value --
250 million authorized) based on
180,760,692 outstanding shares ....................... 180,761
Portfolio Shares of Class C ($.001 par value --
250 million authorized) based on
2,286 outstanding shares ............................. 2
Accumulated Net Realized Loss on Investments (34)
TOTAL NET ASSETS - 100.0% ............................... $180,729
- --------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE .......... $1.00
- --------------------------------------------------------------------------------
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
GO -- GENERAL OBLIGATION
TECP -- TAX EXEMPT COMMERCIAL PAPER
TRAN -- TAX AND REVENUE ANTICIPATION NOTES
(A) VARIABLE RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 1998.
(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.
(D) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
See accompanying notes to financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000) COREFUND ELITE MONEY MARKET FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
For the year ended June 30, 1998
ELITE ELITE ELITE
TREASURY CASH TAX FREE
RESERVE RESERVE RESERVE
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest ............................................... $3,045 $21,452 $7,306
------ ------- ------
EXPENSES:
Investment advisory fees .................................. 110 758 402
Less investment advisory fees waived ...................... (66) (456) (241)
Administrative fees ....................................... 137 948 502
Less administrative fees waived ........................... (99) (683) (361)
Transfer agent fees & expenses ............................ 13 52 61
Professional fees ......................................... 3 17 6
Registration & filing fees ................................ 30 208 12
Printing .................................................. (18) 33 18
Miscellaneous ............................................. 9 47 15
------ ------- ------
Total expenses .................................................. 119 924 414
------ ------- ------
NET INVESTMENT INCOME ........................................... 2,926 20,528 6,892
------ ------- ------
NET REALIZED LOSS ON INVESTMENTS:
Net realized loss on investments .......................... (2) (5) (4)
------ ------- ------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............ $2,924 $20,523 $6,888
====== ======= ======
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000) COREFUND ELITE MONEY MARKET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
For the year ended June 30,
ELITE ELITE
TREASURY CASH
RESERVE* RESERVE**
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997 1998 1997
------- ------- -------- --------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C>
Net investment income ........................................ $ 2,926 $ 1,347 $ 20,528 $ 18,767
Net realized loss on investments ............................. (2) -- (5) (3)
------- ------- ---------- ----------
Net increase in net assets resulting from operations ............... 2,924 1,347 20,523 18,764
------- ------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class Y .................................................. (2,790) (1,347) (20,528) (18,767)
Class C .................................................. (136) -- -- --
------- ------- ---------- ----------
Total dividends distributed .................................. (2,926) (1,347) (20,528) (18,767)
------- ------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class Y
Proceeds from shares issued .............................. 289,324 40,896 1,366,490 825,899
Reinvestment of cash distributions ....................... -- -- 1 --
Cost of shares redeemed .................................. (235,269) (43,727) (969,436) (1,003,355)
------- ------- ---------- ----------
Increase (decrease) in net assets
from Class Y transactions ..................... 54,055 (2,831) 397,055 (177,456)
------- ------- ---------- ----------
Class C
Proceeds from shares issued .............................. 6,661 -- 2,319 --
Reinvestment of cash distributions ....................... 137 -- 14 --
Cost of shares redeemed .................................. (1,782) -- (2,303) --
------- ------- ---------- ----------
Increase in net assets from Class C transactions .... 5,016 -- 30 --
------- ------- ---------- ----------
Increase (decrease) in net assets from capital transactions ........ 59,071 (2,831) 397,085 (177,456)
------- ------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS .............................. 59,069 (2,831) 397,080 (177,459)
------- ------- ---------- ----------
NET ASSETS:
Beginning of year ............................................ 21,667 24,498 206,987 384,446
------- ------- ---------- ----------
End of year .................................................. $80,736 $21,667 $ 604,067 $ 206,987
======= ======= ========== ==========
SHARES ISSUED AND REDEEMED:
Class Y
Shares issued ............................................ 289,323 40,896 1,366,490 825,899
Shares issued in lieu of cash distributions .............. -- -- 1 --
Shares redeemed .......................................... (235,269) (43,727) (969,436) (1,003,355)
------- ------- ---------- ----------
Net increase (decrease) ............................. 54,054 (2,831) 397,055 (177,456)
------- ------- ---------- ----------
Class C
Shares issued ............................................ 6,661 -- 2,319 --
Shares issued in lieu of cash distributions .............. 137 -- 14 --
Shares redeemed .......................................... (1,782) -- (2,303) --
------- ------- ---------- ----------
Net increase ........................................ 5,016 -- 30 --
------- ------- ---------- ----------
Total share activity for period .................................... 59,070 (2,831) 397,085 (177,456)
------- ------- ---------- ----------
OUTSTANDING SHARES:
Beginning of year ............................................ 21,667 24,498 206,990 384,446
------- ------- ---------- ----------
End of year .................................................. 80,737 21,667 604,075 206,990
======= ======= ========== ==========
ELITE
TAX-FREE
RESERVE***
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997
-------- --------
INVESTMENT ACTIVITIES:
<S> <C> <C>
Net investment income ........................................ $ 6,892 $ 3,774
Net realized loss on investments ............................. (4) --
-------- --------
Net increase in net assets resulting from operations ............... 6,888 3,774
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class Y .................................................. (6,892) (3,774)
Class C .................................................. -- --
-------- --------
Total dividends distributed .................................. (6,892) (3,774)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Class Y
Proceeds from shares issued .............................. 544,341 226,783
Reinvestment of cash distributions ....................... -- --
Cost of shares redeemed .................................. (510,921) (165,949)
-------- --------
Increase (decrease) in net assets
from Class Y transactions ..................... 33,420 60,834
-------- --------
Class C
Proceeds from shares issued .............................. 1,033 --
Reinvestment of cash distributions ....................... 16 --
Cost of shares redeemed .................................. (1,047) --
-------- --------
Increase in net assets from Class C transactions .... 2 --
-------- --------
Increase (decrease) in net assets from capital transactions ........ 33,422 60,834
-------- --------
NET INCREASE (DECREASE) IN NET ASSETS .............................. 33,418 60,834
-------- --------
NET ASSETS:
Beginning of year ............................................ 147,311 86,477
-------- --------
End of year .................................................. $180,729 $147,311
-------- --------
SHARES ISSUED AND REDEEMED:
Class Y
Shares issued ............................................ 544,341 226,783
Shares issued in lieu of cash distributions .............. -- --
Shares redeemed .......................................... (510,921) (165,949)
-------- --------
Net increase (decrease) ............................. 33,420 60,834
-------- --------
Class C
Shares issued ............................................ 1,033 --
Shares issued in lieu of cash distributions .............. 16 --
Shares redeemed .......................................... (1,047) --
-------- --------
Net increase ........................................ 2 --
-------- --------
Total share activity for period .................................... 33,422 60,834
-------- --------
OUTSTANDING SHARES:
Beginning of year ............................................ 147,341 86,507
-------- --------
End of year .................................................. 180,763 147,341
======== ========
<FN>
* THIS FUND WAS FORMERLY KNOWN AS THE FIDUCIARY TREASURY RESERVE.
** THIS FUND WAS FORMERLY KNOWN AS THE FIDUCIARY CASH RESERVE.
*** THIS FUND WAS FORMERLY KNOWN AS THE FIDUCIARY TAX-FREE RESERVE.
</FN>
</TABLE>
20 & 21
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS COREFUND ELITE MONEY MARKET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 1998
ELITE TREASURY RESERVE+
- ------------------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
RATIO RATIO OF
NET NET RATIO OF EXPENSES NET INCOME
ASSET DISTRIBUTIONS NET ASSETS RATIO OF NET TO AVERAGE TO AVERAGE
VALUE NET FROM NET ASSET VALUE END OF EXPENSES INCOME NET ASSETS NET ASSETS
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
OF PERIOD INCOME INCOME OF PERIOD RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
---------- ---------- ---------- ---------- ------- ------- ---------- ---------- ----------- -----------
CLASS Y
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended
June 30, 1998 $1.00 0.05 (0.05) $1.00 5.50% $75,720 0.20% 5.35% 0.50% 5.05%
For the year ended
June 30, 1997 $1.00 0.05 (0.05) $1.00 5.33% $21,667 0.17% 5.20% 0.50% 4.87%
For the year ended
June 30, 1996 $1.00 0.05 (0.05) $1.00 5.54% $24,498 0.19% 5.39% 0.80% 4.78%
For the year ended
June 30, 1995 $1.00 0.05 (0.05) $1.00 5.24% $18,396 0.23% 5.09% 0.87% 4.45%
For the year ended
June 30, 1994 $1.00 0.03 (0.03) $1.00 3.10% $20,363 0.28% 3.03% 0.91% 2.40%
CLASS C
For the period ended
June 30, 1998**(1) $1.00 0.03 (0.03) $1.00 2.75%* $ 5,016 0.45% 5.10% 0.75% 4.80%
- ----------------------------
<FN>
* RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD ENDED JUNE 30, 1998 HAVE BEEN ANNUALIZED.
(1) THE ELITE TREASURY RESERVE CLASS C COMMENCED OPERATIONS ON DECEMBER 18, 1997.
+ THIS FUND WAS FORMERLY KNOWN AS THE FIDUCIARY TREASURY RESERVE.
See accompanying notes to financial statements.
</FN>
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS COREFUND ELITE MONEY MARKET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 1998
ELITE CASH RESERVE+
- ------------------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
RATIO RATIO OF
NET NET RATIO OF EXPENSES NET INCOME
ASSET DISTRIBUTIONS NET ASSETS RATIO OF NET TO AVERAGE TO AVERAGE
VALUE NET FROM NET ASSET VALUE END OF EXPENSES INCOME NET ASSETS NET ASSETS
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
OF PERIOD INCOME INCOME OF PERIOD RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
---------- ---------- ---------- ---------- ------- -------- ---------- ---------- ----------- -----------
CLASS Y
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended
June 30, 1998 $1.00 0.05 (0.05) $1.00 5.58% $604,037 0.24% 5.40% 0.54% 5.10%
For the year ended
June 30, 1997 $1.00 0.05 (0.05) $1.00 5.43% $206,987 0.17% 5.28% 0.50% 4.94%
For the year ended
June 30, 1996 $1.00 0.05 (0.05) $1.00 5.62% $384,446 0.15% 5.46% 0.76% 4.85%
For the year ended
June 30, 1995 $1.00 0.05 (0.05) $1.00 5.46 $406,597 0.17% 5.35% 0.81% 4.71%
For the year ended
June 30, 1994 $1.00 0.03 (0.03) $1.00 3.31% $382,814 0.16% 3.24% 0.84% 2.56%
CLASS C
For the period ended
June 30, 1998**(1) $1.00 0.03 (0.03) $1.00 2.79%* $ 30 0.49% 5.15% 0.79% 4.85%
- ------------------------------
<FN>
* RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD ENDED JUNE 30, 1998 HAVE BEEN ANNUALIZED.
(1) THE ELITE CASH RESERVE CLASS C COMMENCED OPERATIONS ON DECEMBER 18, 1997.
+ THIS FUND WAS FORMERLY KNOWN AS THE FIDUCIARY CASH RESERVE.
See accompanying notes to financial statements.
</FN>
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS COREFUND ELITE MONEY MARKET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 1998
ELITE TAX-FREE RESERVE+
- ------------------------------------------------------------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period
RATIO RATIO OF
NET NET RATIO OF EXPENSES NET INCOME
ASSET DISTRIBUTIONS NET ASSETS RATIO OF NET TO AVERAGE TO AVERAGE
VALUE NET FROM NET ASSET VALUE END OF EXPENSES INCOME NET ASSETS NET ASSETS
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
OF PERIOD INCOME INCOME OF PERIOD RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
---------- ---------- ---------- ---------- ------- -------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended
June 30, 1998 $1.00 0.03 (0.03) $1.00 3.49% $180,727 0.20% 3.42% 0.50% 3.12%
For the year ended
June 30, 1997 $1.00 0.03 (0.03) $1.00 3.42% $147,311 0.17% 3.39% 0.50% 3.06%
For the year ended
June 30, 1996 $1.00 0.03 (0.03) $1.00 3.51% $ 86,477 0.16% 3.44% 0.76% 2.84%
For the year ended
June 30, 1995 $1.00 0.03 (0.03) $1.00 3.41% $ 72,593 0.19% 3.37% 0.83% 2.73%
For the year ended
June 30, 1994 $1.00 0.02 (0.02) $1.00 2.32% $ 78,219 0.17% 2.29% 0.82% 1.64%
For the six month
period ended
December 31, 1997** $1.00 0.03 (0.03) $1.00 1.78%* $ 202,230 0.18% 3.52% 0.48% 3.22%
CLASS C
For the period ended
June 30, 1998**(1) $1.00 0.02 (0.02) $1.00 1.70%* $ 2 0.45% 3.17% 0.75% 2.87%
- ------------------------------
<FN>
* RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
** RATIOS FOR THE PERIOD ENDED JUNE 30, 1998 HAVE BEEN ANNUALIZED.
(1) THE ELITE TAX-FREE RESERVE CLASS C COMMENCED OPERATIONS ON DECEMBER 18, 1997.
+ THIS FUND WAS FORMERLY KNOWN AS THE FIDUCIARY TAX-FREE RESERVE.
See accompanying notes to financial statements.
</FN>
</TABLE>
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
1. ORGANIZATION
The CoreFund Elite Treasury Reserve, Elite Cash Reserve, and Elite Tax-Free
Reserve are Funds offered by CoreFunds, Inc. (the "Company"), an open-end
investment company registered under the Investment Company Act of 1940, as
amended.
The Company is comprised of 20 separate funds (the "Funds"):
EQUITY FUNDS: MONEY MARKET FUNDS:
Equity Index Fund Treasury Reserve
Core Equity Fund Cash Reserve
Growth Equity Fund Tax-Free Reserve
Special Equity Fund Elite Cash Reserve
International Growth Fund Elite Treasury Reserve
Balanced Fund Elite Tax-Free Reserve
FIXED INCOME FUNDS:
Short Term Income Fund
Short-Intermediate Bond Fund
Government Income Fund
Bond Fund
Global Bond Fund
Intermediate Municipal Bond Fund
Pennsylvania Municipal Bond Fund
New Jersey Municipal Bond Fund
The financial statements included herein present only those of the Elite
Treasury Reserve, Elite Cash Reserve, and Elite Tax-Free Reserve. The financial
statements of the remaining Funds are presented separately. The assets of each
Fund are segregated, and a shareholder's interest is limited to the Fund in
which shares are held. The Funds' prospectuses provide a description of the
Fund's investment objectives, policies and strategies.
Refer to Footnote 8 regarding the reorganization of the Funds after June 30,
1998.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Elite Treasury Reserve, Elite Cash Reserve, and Elite Tax-Free Reserve.
SECURITY VALUATION -- Investment securities of the Elite Treasury Reserve, Elite
Cash Reserve, and Elite Tax-Free Reserve 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.
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date of the security purchase or sale. Costs used in
determining net realized capital gains and losses on the sale of securities are
those of the specific securities sold, adjusted for the accretion and
amortization of the purchase discounts and premiums during the respective
holding period. Interest income is recorded on the accrual basis.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by each Fund's custodian bank until maturity of the
repurchase agreements. Provisions of the agreements and procedures adopted by
the Adviser ensure that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default by the counterparty. If
the counterparty defaults and the value of the collateral declines or if the
counterparty enters into insolvency proceedings, realization of the collateral
by the Fund may be delayed or limited.
EXPENSES -- Expenses that are directly related to the Fund are charged directly
to that Fund. Other operating expenses of the Company are prorated to the Funds
on the basis of relative net assets. Class specific expenses, such as the 12b-1
fees, are borne by that class. Income, other expenses and any accumulated
realized and unrealized gains and losses of a Fund are allocated to the
respective class on the basis of the relative net asset value each day.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are
declared on a daily basis and are payable on the first business day of the
following month. Any net realized capital gains on sales of securities for a
Fund are distributed to its shareholders at least annually.
FEDERAL INCOME TAXES -- It is each Fund's intention to continue to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is required.
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
Pursuant to an investment advisory agreement dated April 12, 1996, investment
advisory services are provided to the Company by CoreStates Investment Advisers,
Inc. ("CoreStates Advisers"), a wholly-owned subsidiary of CoreStates Bank, N.A.
(now First Union Bank) ("CoreStates Bank"), itself a wholly-owned subsidiary of
CoreStates Financial Corp. Under the terms of such agreement, CoreStates
Advisers is entitled to receive an annual fee of 0.20% on the average net assets
of the Elite Treasury Reserve, Elite Cash Reserve and Elite Tax-Free Reserve.
Advisory fees are computed daily and paid monthly for each Fund. Additionally,
for the year ended June 30, 1998, CSIA has voluntarily waived a portion of their
fees in order to assist the Funds in maintaining competitive expense ratios.
CoreStates Bank serves as Custodian to the Company. Under the Custodian
Agreement, CoreStates Bank holds each Fund's securities and cash items, makes
receipts and disbursements of money on behalf of each Fund, collects and
receives all income and other payments and distributions
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
on account of the Funds' securities and performs other related services.
CoreStates Bank may, at its discretion and at its own expense, open and maintain
a sub-custody account or employ a sub-custodian on behalf of the Funds investing
exclusively in the United States and may, with the Funds' Board approval and at
the expense of the Funds, employ sub-custodians on behalf of the Funds who
invest in foreign countries provided that CoreStates Bank shall remain liable
for the performance of all of its duties under the Custodian Agreement.
4. ADMINISTRATIVE, DISTRIBUTION, AND TRANSFER AGENT SERVICES
Pursuant to an administration agreement dated October 30, 1992, as amended June
1, 1995, SEI Fund Resources ("SFR"), a wholly-owned subsidiary of SEI
Corporation, acts as the Funds' Administrator. Under the terms of such
agreement, SFR is entitled to receive an annual fee of 0.25% on the average
daily net assets of the Elite Treasury Reserve, Elite Cash Reserve and Elite
Tax-Free Reserve. Such a fee is computed daily and paid monthly for all Funds.
Additionally, for the year ended June 30, 1998, SFR has voluntarily waived a
portion of their fees in order to assist the Funds in maintaining competitive
expense ratios.
Pursuant to a transfer agency agreement dated November 16, 1995, Boston
Financial Data Services ("BFDS"), a wholly-owned subsidiary of State Street Bank
and Trust Company, acts as the Funds' Transfer Agent. As such, BFDS provides
transfer agency, dividend disbursing, and shareholder servicing for the Funds.
On November 2, 1992, SEI Investments Distribution Co., also a wholly-owned
subsidiary of SEI Corporation, became the Funds' exclusive Distributor pursuant
to a distribution agreement dated October 30, 1992.
The Company has adopted a Distribution Plan (the Plan) for those Funds offering
Class C 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 class 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 brokers/dealers and financial institutions that enter into
shareholder servicing agreements or broker agreements with the Distributor. The
Funds paid approximately $219,874 to affiliated brokers for commissions earned
on the sales of the shares of the Funds.
Certain officers of the Company are also officers of the Administrator. Such
officers are not paid fees by the Funds.
The Funds have paid legal fees in the amount of $150,615 to a law firm in which
the secretary of the Company is a partner.
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
5. INVESTMENT TRANSACTIONS
Certain net capital losses incurred subsequent to October 31, 1997 have been
deferred for tax purposes and will be recognized during the fiscal year ended
June 30, 1999. The Elite Treasury Reserve, Elite Cash Reserve, and Elite
Tax-Free Reserve had capital loss carryforwards at June 30, 1998, as follows:
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYOVER EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES
6/30/98 2002 2003 2004 2005 2006
------------ ------- --------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Elite Treasury Reserve $ 1,090 $ -- $ -- $ -- $1,090 $ --
Elite Cash Reserve 7,149 -- 3,812 -- 3,337 --
Elite Tax-Free Reserve 30,675 399 24,257 993 4,870 156
</TABLE>
6. INVESTMENT COMPOSITION
The Elite Tax-Free Reserve invests in securities which include revenue and
general obligation instruments.
At June 30, 1998, the revenue sources by purpose were as follows:
% OF PORTFOLIO
INVESTMENTS
--------------
REVENUE INSTRUMENTS
Education Bonds ........................ 3%
Hospital & Health Care Bonds ........... 4%
Housing Bonds .......................... 4%
Industrial Development Bonds ........... 12%
Other Bonds ............................ 7%
Pollution Control Bonds ................ 13%
Transportation Bonds ................... 6%
Utility Bonds .......................... 4%
TAX EXEMPT COMMERCIAL PAPER ..................... 32%
GENERAL OBLIGATIONS ............................. 9%
TAX & REVENUE ANTICIPATION NOTES ................ 6%
----
100%
====
In addition, certain investments are covered by insurance issued by several
private issuers who guarantee the payment of interest and principal at final
maturity in the event of default. Such insurance, however, does not guarantee
the market value of the securities or the value of the Elite Tax-Free Reserve
shares.
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
7. FUND REORGANIZATIONS
On April 30, 1998, CoreStates Financial Corp (of which CoreStates Investments
Advisers, Inc., investment adviser to the Funds, is a wholly-owned subsidiary)
merged with and into a wholly-owned subsidiary of First Union Corporation. In
anticipation of the merger transaction, on February 6, 1998, the Board of
Directors of CoreFunds, Inc. approved an Agreement and Plan of Reorganization
(the "Plan"), providing for the transfer of all assets and liabilities of the
CoreFunds in exchange for the issuance of shares of the Evergreen Funds in a
tax-free reorganization. At a special meeting of shareholders held on June 17,
1998, the shareholders of CoreFunds voted to approve the Plan.
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) COREFUND ELITE MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
(UNAUDITED)
A special meeting of the Elite Treasury Reserve, Elite Cash Reserve, and Elite
Tax-Free Reserve shareholders was scheduled for July 17, 1998 at which the
shareholders of the Funds voted to:
(1) approve an Agreement and Plan of Reorganization (the "Plan"),
providing for the transfer of all assets and liabilities of the
CoreFunds in exchange for the issuance of shares of the Evergreen
Funds in a tax-free reorganization, and
(2) approve the Interim Investment Advisory Agreement between the Funds
and CoreStates Investment Advisers, Inc. (CSIA) from April 30, 1998 to
the date the reorganizations are consummated.
<TABLE>
<CAPTION>
The results are as follows:
SHARES VOTED % OF VOTED % OF TOTAL
ELITE TREASURY RESERVE
<S> <C> <C> <C> <C>
Item #1 FOR 41,648,613.000 94.55% 50.78%
AGAINST 1,299,000.000 2.95% 1.58%
ABSTAIN -- 0.00% 0.00%
BROKER NON-VOTE 1,102,150.000 2.50% 1.34%
tem #2 FOR 42,702,773.000 96.94% 52.06%
AGAINST -- 0.00% 0.00%
ABSTAIN 1,346,990.000 3.06% 1.64%
BROKER NON-VOTE -- 0.00% 0.00%
ELITE CASH RESERVE
Item #1 FOR 338,716,545.000 96.51% 56.96%
AGAINST 985,490.000 0.28% 0.17%
ABSTAIN 11,244,504.000 3.20% 1.89%
BROKER NON-VOTE 28,550,500 0.01% 0.00%
Item #2 FOR 338,745,095.000 96.52% 56.96%
AGAINST 985,490.000 0.28% 0.17%
ABSTAIN 11,244,504.000 3.20% 1.89%
BROKER NON-VOTE -- 0.00% 0.00%
ELITE TAX-FREE RESERVE
Item #1 FOR 217,159,049.000 99.56% 89.80%
AGAINST -- 0.00% 0.00%
ABSTAIN 55,917.000 0.03% 0.02%
BROKER NON-VOTE 914,675.000 0.42% 0.38%
Item #2 FOR 218,073,724.000 99.97% 90.18%
AGAINST -- 0.00% 0.00%
ABSTAIN 55,917.000 0.03% 0.02%
BROKER NON-VOTE -- 0.00% 0.00%
</TABLE>
30
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Board of Directors and Shareholders
CoreFunds, Inc.
We have audited the accompanying statements of net assets of the CoreFund Elite
Treasury Reserve, CoreFund Elite Cash Reserve, and CoreFund Elite Tax-Free
Reserve of CoreFunds, Inc. (the "Funds") as of June 30, 1998, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods presented herein. These financial statements
and financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included verification by examination of securities
held by the custodian as of June 30, 1998, and confirmation of securities not
held by the custodian by correspondence with brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds at June 30, 1998, and the results of their operations
for the year then ended, the changes in their net assets for each of the two
years in the period then ended, and their financial highlights for each of the
periods presented herein, in conformity with generally accepted accounting
principles.
/s/ signature omitted
Philadelphia, Pennsylvania
August 25, 1998
<PAGE>
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Corporation. The report is not
authorized for distribution to prospective investors in the Corporation unless
preceded or accompanied by an effective prospectus. Shares in the Fund are not
deposits or obligations of, or guaranteed or endorsed by, CoreStates Bank, N.A.,
the parent corporation of the Fund's investment adviser. Such shares are also
not federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other agency.
COR-F-056-03
