CoreFunds, Inc.
---------------
ANNUAL REPORT TO SHAREHOLDERS
June 30, 1998
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
EQUITY INDEX FUND
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
COMMON STOCKS -- 99.8%
AEROSPACE & DEFENSE -- 0.9%
Lockheed Martin 6,800 $ 720
Northrop Grumman 1,700 175
Raytheon Company, Class B* 11,900 704
Rockwell International 8,763 421
United Technologies 8,600 795
------
2,815
------
AGRICULTURE -- 0.1%
Pioneer Hi-Bred International 10,500 434
------
AIR TRANSPORTATION -- 0.5%
AMR* 3,400 283
Delta Air Lines 2,500 323
Federal Express* 4,000 251
US Air Group* 7,800 618
------
1,475
------
AIRCRAFT -- 0.8%
Boeing 38,470 1,714
General Dynamics 6,000 279
Textron 8,000 573
------
2,566
------
APPAREL/TEXTILES -- 0.3%
Liz Claiborne 5,000 261
Nike, Class B 10,000 487
Reebok International 7,300 202
Russell 3,100 94
------
1,044
------
AUTOMOTIVE -- 2.3%
Allied Signal 18,200 808
Chrysler 26,200 1,477
Dana 1,500 80
Echlin 8,300 407
Ford Motor 43,400 2,561
General Motors 27,600 1,844
Paccar 3,000 157
TRW 5,000 273
------
7,607
------
BANKS -- 9.0%
Banc One 26,038 1,453
Bank of New York 13,000 789
BankAmerica 25,600 2,213
BankBoston 9,000 501
Bankers Trust New York 3,800 441
BB&T 5,000 338
Chase Manhattan 31,532 2,381
Citicorp 16,800 2,507
Comerica 5,550 368
Fifth Third Bancorp 6,750 425
First Chicago 12,701 1,126
First Union 23,560 1,372
Fleet Financial Group 9,801 818
Golden West Financial 2,000 213
H.F. Ahmanson 4,500 319
Huntington Bancshares 5,000 167
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
J.P. Morgan 6,000 $ 703
Keycorp 15,600 556
MBNA 17,887 590
Mellon Bank 11,400 794
Mercantile Bancorporation 4,500 227
National City 11,800 838
NationsBank 35,075 2,683
Northern Trust 4,000 305
Norwest 30,600 1,144
PNC Bank 13,900 748
Providian Financial 2,300 181
Republic New York 4,000 252
State Street 6,000 417
Summit Bancorp 6,000 285
Suntrust Banks 8,400 683
Synovus Financial 15,000 356
U.S. Bancorp 26,238 1,128
Wachovia 7,100 600
Washington Mutual 13,650 593
Wells Fargo 3,433 1,267
------
29,781
------
BEAUTY PRODUCTS -- 2.6%
Avon Products 3,200 248
Colgate Palmolive 10,492 923
Gillette 41,000 2,324
International Flavors &
Fragrances 6,500 282
Procter & Gamble 50,800 4,626
------
8,403
------
BROADCASTING, CABLE TV, NEWSPAPERS & ADVERTISING -- 1.7%
CBS 26,000 825
Clear Channel Communications* 3,600 393
Comcast, Class A 14,200 576
Interpublic Group 5,000 303
Omnicom Group 6,800 339
Tele-Communications, Class A* 18,424 708
Time Warner, Class A 21,800 1,863
Viacom, Class B* 10,526 613
------
5,620
------
BUILDING & CONSTRUCTION -- 0.2%
Centex 4,800 181
Foster Wheeler 3,300 71
Halliburton 9,200 410
McDermott International 3,400 117
------
779
------
BUILDING MATERIALS -- 0.0%
Owens Corning 2,800 114
------
CHEMICALS -- 2.3%
Air Products & Chemical 6,200 248
Dow Chemical 8,150 788
E.I. DuPont de Nemours 40,000 2,985
Eastman Chemical 5,700 355
Ecolab 10,000 310
FMC* 2,200 150
Hercules 9,200 378
Monsanto 19,500 1,090
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
1
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
EQUITY INDEX FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Nalco Chemical 5,700 $ 200
Praxair 5,500 257
Rohm & Haas 2,500 260
Sigma Aldrich 10,600 372
W.R. Grace & Company* 3,100 53
--------
7,446
--------
COMMUNICATIONS EQUIPMENT -- 3.7%
Andrew* 9,000 163
Ascend Communications* 5,000 248
Bay Networks* 5,000 161
Cabletron Systems* 21,800 293
Cisco Systems* 36,900 3,397
General Instrument* 5,800 158
ITT Industries 7,000 262
Lucent Technologies 46,600 3,877
Mediaone Group* 21,800 958
Motorola 20,600 1,083
Northern Telecom 19,100 1,084
Tellabs* 6,200 444
--------
12,128
--------
COMPUTERS & SERVICES -- 8.7%
3COM* 12,000 368
Adobe Systems 4,000 170
Automatic Data Processing 9,400 685
Ceridian* 3,400 200
Compaq Computer 61,685 1,750
Computer Associates International 18,075 1,004
Computer Sciences* 3,800 243
Dell Computer* 24,800 2,302
DSC Communications* 17,500 525
EMC* 18,200 816
Equifax 6,000 218
First Data 15,400 513
Gateway 2000* 5,000 253
Harris Computer Systems 3,200 143
Hewlett Packard 37,300 2,233
International Business Machines 35,000 4,018
Microsoft* 90,700 9,830
Novell* 20,000 255
Oracle Systems* 36,862 905
Parametric Technology* 10,000 271
Pitney Bowes 10,000 481
Seagate Technology* 7,200 171
Shared Medical Systems 2,400 176
Silicon Graphics* 23,000 279
Sun Microsystems* 11,200 486
Tandy 4,000 212
Unisys* 10,000 282
--------
28,789
--------
CONTAINERS & PACKAGING -- 0.2%
Crown Cork & Seal 3,700 176
Owens-Illinois* 9,000 403
--------
579
--------
DRUGS -- 8.9%
Abbott Labs 56,000 2,289
Allergan 5,000 232
Alza* 5,000 216
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
American Home Products 45,600 $ 2,360
Amgen* 9,600 628
Baxter International 9,800 527
Bristol-Myers Squibb 37,040 4,257
Eli Lilly 39,800 2,629
Merck 44,400 5,938
Pfizer 48,200 5,239
Pharmacia & Upjohn 16,255 750
Schering Plough 27,200 2,492
Warner Lambert 28,200 1,956
--------
29,513
--------
ELECTRICAL EQUIPMENT -- 3.6%
Emerson Electric 14,600 881
General Electric 117,500 10,692
W.W. Grainger 4,000 199
--------
11,772
--------
ELECTRICAL SERVICES -- 2.4%
Ameren 4,300 171
American Electric Power 5,300 240
Baltimore Gas & Electric 4,700 146
Carolina Power & Light 10,600 460
Central & South West 5,400 145
Cinergy 4,600 161
Consolidated Edison 5,300 244
Dominion Resources of Virginia 5,500 224
DTE Energy 4,200 170
Duke Power 12,986 769
Edison International 13,400 396
Firstenergy* 10,000 307
FPL Group 6,100 384
GPU 4,200 159
Houston Industries 13,343 412
Niagara Mohawk Power* 26,200 391
Northern States Power 7,000 200
Pacificorp 16,400 371
PECO Energy 16,000 467
PG&E 15,500 489
PP&L Resources 1,500 34
Public Service Enterprise Group 5,500 189
Sempra Energy* 5,714 159
Southern 20,100 557
Texas Utilities 8,785 366
Unicom 4,800 168
--------
7,779
--------
ENTERTAINMENT -- 0.9%
King World Productions* 13,200 337
Walt Disney 24,926 2,619
--------
2,956
--------
ENVIRONMENTAL SERVICES -- 0.3%
Browning Ferris Industries 5,900 205
Laidlaw 14,000 171
Waste Management 15,200 532
--------
908
--------
FINANCIAL SERVICES -- 3.7%
American Express 16,600 1,892
Associates First Capital 12,774 982
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
EQUITY INDEX FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Beneficial 2,400 $ 368
Charles Schwab 9,600 312
Countrywide Credit Industries 6,000 304
FHLMC 30,200 1,421
FNMA 38,800 2,357
Franklin Resources 9,000 486
Green Tree Financial 5,900 253
Household International 12,300 612
Lehman Brothers Holdings 3,000 233
Merrill Lynch 11,200 1,033
Morgan Stanley, Dean Witter,
& Discover 21,330 1,949
--------
12,202
--------
FOOD, BEVERAGE & TOBACCO -- 7.3%
Anheuser Busch 16,400 774
Archer Daniels Midland 17,277 335
Bestfoods 10,800 627
Campbell Soup 16,200 861
Coca Cola 91,600 7,832
ConAgra 14,600 463
Coors, Adolph, Class B 5,600 190
Fortune Brands 6,700 258
General Mills 5,900 403
H.J. Heinz 16,650 934
Hershey Foods 4,000 276
Kellogg 15,200 571
PepsiCo 56,800 2,339
Philip Morris 89,400 3,520
Quaker Oats 5,000 275
Ralston-Purina Group 3,900 456
Sara Lee 16,900 945
Seagram 12,300 504
Unilever 23,600 1,863
UST 10,200 275
Wrigley, William Jr. 4,000 392
--------
24,093
--------
GAS/NATURAL GAS -- 0.8%
Coastal 2,500 175
Columbia Gas Systems 5,250 292
Consolidated Natural Gas 6,000 353
Enron 11,200 605
Nicor 3,700 148
Peoples Energy 4,100 158
Sonat 6,800 263
Williams 14,500 489
--------
2,483
--------
GLASS PRODUCTS -- 0.2%
Corning 7,300 254
PPG Industries 7,300 508
--------
762
--------
HEALTHCARE SERVICES -- 0.5%
Columbia/HCA Healthcare 22,850 666
Healthsouth* 11,000 294
Humana* 8,000 250
Tenet Healthcare* 12,900 403
--------
1,613
--------
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
HOTELS & LODGING -- 0.2%
Harrah's Entertainment* 10,000 $ 233
Hilton Hotels 8,500 242
Marriott International* 10,000 324
--------
799
--------
HOUSEHOLD FURNITURE & FIXTURES -- 0.2%
Armstrong World Industries 1,600 108
Masco 5,500 333
Newell 3,600 179
Sherwin Williams 4,600 152
--------
772
--------
HOUSEHOLD PRODUCTS -- 0.3%
Clorox 5,800 553
Whirlpool 5,700 392
--------
945
--------
INSURANCE -- 5.0%
Aetna 5,308 404
Allstate 15,700 1,438
American General 9,716 692
American International Group 25,500 3,723
AON 5,250 369
Chubb 6,600 530
Cigna 8,700 600
Cincinnati Financial 9,000 345
Conseco 5,600 262
General Re 2,400 608
Hartford Financial Services
Group 3,100 355
Jefferson-Pilot 6,750 391
Lincoln National 2,100 192
Loew's 3,400 296
Marsh and McLennan 11,100 671
MBIA 3,800 285
MGIC Investment 5,000 285
Progressive of Ohio 2,200 310
Safeco 8,400 382
St. Paul 14,616 615
Sunamerica 6,750 388
Transamerica 1,500 173
Travelers 42,079 2,551
United Healthcare 5,100 324
Unum 6,000 333
--------
16,522
--------
LUMBER & WOOD PRODUCTS -- 0.0%
Potlatch 2,100 88
--------
MACHINERY -- 1.2%
Baker Hughes 6,000 207
Black & Decker 3,500 214
Brunswick 9,500 235
Case 3,000 145
Caterpillar 13,800 730
Crane 4,650 226
Deere 7,800 412
Dover 5,600 192
Dresser Industries 4,500 198
Eaton 3,100 241
Illinois Tool Works 8,200 547
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
EQUITY INDEX FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Ingersoll Rand 6,600 $ 291
Snap-On Tools 4,050 147
Stanley Works 3,600 150
Timken 5,000 154
--------
4,089
--------
MEASURING DEVICES -- 0.6%
Honeywell 4,400 368
Johnson Controls 9,000 514
Millipore 3,400 93
Parker Hannifin 4,275 163
Perkin Elmer 5,000 311
Tektronix 5,250 186
Thermo Electron* 7,000 239
--------
1,874
--------
MEDICAL INFORMATION SYSTEMS -- 0.2%
HBO 15,000 529
--------
MEDICAL PRODUCTS & SERVICES -- 2.3%
Bausch & Lomb 9,000 451
Becton Dickinson 3,000 233
Biomet* 9,000 298
Boston Scientific* 5,800 415
Cardinal Health 4,000 375
Guidant 6,500 464
Johnson & Johnson 48,000 3,540
Mallinckrodt 4,500 134
Medtronic 16,000 1,020
St. Jude Medical* 7,000 258
U.S. Surgical 6,000 274
--------
7,462
--------
METALS & MINING -- 0.4%
Alcan Aluminum 7,700 213
Aluminum Company of America 5,200 343
Asarco 3,300 73
Cyprus AMAX Minerals 7,400 98
Freeport-McMoran Copper
and Gold, Class B 6,000 91
Inco 7,600 104
Newmont Mining 10,770 254
Phelps Dodge 1,600 92
Reynolds Metals 3,500 196
--------
1,464
--------
MISCELLANEOUS BUSINESS SERVICES -- 0.2%
Cendant* 28,502 595
National Service Industries 3,000 153
--------
748
--------
MISCELLANEOUS CHEMICAL PRODUCTS -- 0.1%
Raychem 8,800 260
--------
MISCELLANEOUS CONSUMER SERVICES -- 0.2%
H&R Block 7,000 295
Service International 9,800 420
--------
715
--------
MISCELLANEOUS MANUFACTURING -- 0.5%
Hasbro 3,600 142
Mattel 8,250 349
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Tyco International 20,800 $ 1,310
--------
1,801
--------
PAPER & PAPER PRODUCTS -- 1.4%
Avery Dennison 4,600 247
Champion International 8,200 403
Fort James 6,700 298
International Paper 12,035 518
Kimberly Clark 23,704 1,087
Mead 6,600 210
Minnesota Mining &
Manufacturing 14,600 1,200
Stone Container* 3,800 59
Temple Inland 1,000 54
Union Camp 4,750 236
Weyerhaeuser 6,006 277
Willamette Industries 3,800 122
--------
4,711
--------
PETROLEUM REFINING -- 7.0%
Amerada Hess 2,100 114
Amoco 34,800 1,449
Anadarko Petroleum 5,000 336
Ashland 4,300 222
Atlantic Richfield 12,000 938
Burlington Resources 6,400 276
Chevron 23,300 1,935
Exxon 90,600 6,461
Mobil 28,800 2,207
Occidental Petroleum 9,900 267
Oryx Energy* 8,400 186
Phillips Petroleum 7,200 347
Rowan Companies* 10,000 194
Royal Dutch Petroleum 78,500 4,303
Schlumberger 17,800 1,216
Sun 8,200 318
Texaco 23,600 1,409
Union Pacific Resources Group 8,629 152
Unocal 8,900 318
USX Marathon Group 9,500 326
Western Atlas* 3,000 255
--------
23,229
--------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES -- 0.6%
Eastman Kodak 11,300 826
Polaroid 3,000 107
Xerox 10,800 1,098
--------
2,031
--------
PRECIOUS METALS -- 0.1%
Barrick Gold 12,000 230
Placer Dome Group 5,400 63
--------
293
--------
PRINTING & PUBLISHING -- 0.8%
Deluxe 500 18
Donnelly R.R. & Sons 9,200 421
Gannett 9,600 682
Knight-Ridder 3,000 165
McGraw-Hill 2,200 179
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
EQUITY INDEX FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Meredith 6,000 $ 282
New York Times, Class A 3,200 254
Times Mirror, Class A 5,900 371
Tribune 3,000 206
--------
2,578
--------
PROFESSIONAL SERVICES -- 0.3%
Cognizant 11,000 693
Dun & Bradstreet 4,700 169
--------
862
--------
RAILROADS -- 0.5%
Burlington Northern Santa Fe 5,464 536
CSX 8,200 373
Norfolk Southern 13,800 411
Union Pacific 8,300 366
--------
1,686
--------
RETAIL -- 6.2%
Albertson's 8,400 435
American Stores 13,400 324
Autozone* 10,000 319
Circuit City Stores 7,500 352
Consolidated Stores* 5,000 181
Costco Companies* 10,900 687
CVS 12,800 498
Darden Restaurants 11,800 187
Dayton-Hudson 15,600 757
Dillards, Class A 9,700 402
Federated Department Stores* 5,700 307
Gap 14,700 906
Giant Food, Class A 3,900 168
Harcourt General 5,300 315
Home Depot 25,599 2,126
J.C. Penney 8,600 622
K-mart* 16,950 326
Kroger* 6,200 266
Limited 9,000 298
Lowes 11,000 446
May Department Stores 6,900 452
McDonald's 24,900 1,718
Mercantile Stores 500 39
Nordstrom 6,000 464
Rite Aid 7,400 278
Sears Roebuck 13,500 824
TJX Companies 18,000 434
Toys "R" Us* 8,000 189
Venator Group* 7,500 143
Wal-Mart Stores 82,600 5,018
Walgreen 15,200 628
Wendy's International 5,900 139
Winn Dixie Stores 5,000 256
--------
20,504
--------
RUBBER & PLASTIC -- 0.3%
Goodyear Tire & Rubber 5,380 347
Rubbermaid 8,500 282
Sealed Air* 6,661 245
Tupperware 5,700 160
--------
1,034
--------
- -------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.1%
Advanced Micro Devices* 7,500 $ 128
AMP 6,200 213
Applied Materials* 13,200 389
Intel 62,200 4,611
LSI Logic* 10,000 231
Micron Technology 6,000 149
National Semiconductor* 5,600 74
Texas Instruments 13,200 770
Thomas & Betts 5,000 246
--------
6,811
--------
SPECIALTY MACHINERY -- 0.1%
Cooper Industries 6,000 330
--------
STEEL & STEEL WORKS -- 0.2%
Allegheny Teledyne 8,300 190
Nucor 6,000 276
USX U.S. Steel Group 1,900 63
--------
529
--------
TELEPHONES & TELECOMMUNICATION -- 6.7%
AT&T 58,736 3,355
Airtouch Communications* 19,100 1,116
Alltel 6,000 279
Ameritech 43,600 1,957
Bell Atlantic 57,224 2,611
BellSouth 36,100 2,423
GTE 33,600 1,869
MCI Communications 30,458 1,770
Nextel Communications, Class A* 9,500 236
SBC Telecommunications 67,172 2,687
Sprint 16,000 1,128
US West 18,195 855
Worldcom* 36,500 1,768
--------
22,054
--------
TRUCKING -- 0.0%
Ryder System 5,000 158
--------
WHOLESALE -- 0.2%
Ikon Office Solutions 8,400 122
Sysco 20,000 513
--------
635
--------
TOTAL COMMON STOCKS
(Cost $169,622) 329,174
--------
REPURCHASE AGREEMENTS -- 0.2%
Goldman Sachs
5.650%, dated 06/30/98, matures
07/01/98, repurchase price $347,054
(collateralized by U.S. Treasury
Note, par value $340,000, 6.375%,
03/31/01; market value
$352,988) $ 347 347
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
EQUITY INDEX FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Swiss Bank
5.850%, dated 06/30/98, matures
07/01/98, repurchase price $346,056
(collateralized by U.S. Treasury
Note, par value $345,000,
5.625%, 02/28/01;
market value $352,673) $346 $ 346
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $693) $ 693
--------
TOTAL INVESTMENTS -- 100.0%
(Cost $170,315) 329,867
--------
OTHER ASSETS AND LIABILITIES, NET -- (0.0%) (113)
--------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 500 million
authorized shares) based on
6,827,018 outstanding shares
of beneficial interest 155,514
Portfolio Shares of Class A ($.001
par value -- 500 million
authorized shares) based on
258,140 outstanding shares
of beneficial interest 9,507
Portfolio Shares of Class B ($.001
par value -- 500 million
authorized shares) based on 41,579
outstanding shares of
beneficial interest 1,695
Undistributed Net Investment Income 28
Accumulated Net Realized Gain
on Investments 3,458
Net Unrealized Appreciation
on Investments 159,552
--------
TOTAL NET ASSETS -- 100.0% $329,754
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $46.27
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $46.27
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $45.45
========
* NON-INCOME PRODUCING SECURITY
CORE EQUITY FUND
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
COMMON STOCKS -- 99.7%
AIR TRANSPORTATION -- 0.5%
Delta Air Lines 24,400 $ 3,154
--------
AIRCRAFT -- 1.8%
Boeing 151,000 6,729
Textron 51,600 3,699
--------
10,428
--------
AUTOMOTIVE -- 2.0%
Allied Signal 112,000 4,970
Magna International, Class A 99,000 6,794
--------
11,764
--------
BANKS -- 4.5%
Mellon Bank 173,300 12,066
NationsBank 108,900 8,331
Summit Bancorp 123,800 5,880
--------
26,277
--------
BEAUTY PRODUCTS -- 0.2%
USA Detergents* 52,800 875
--------
BROADCASTING, CABLE TV, NEWSPAPERS
& ADVERTISING -- 2.1%
Emmis Broadcasting* 76,700 3,667
USA Networks* 286,200 7,191
Viacom, Class B* 24,800 1,445
--------
12,303
--------
BUILDING & CONSTRUCTION -- 0.9%
Clayton Homes 217,800 4,138
Foster Wheeler 58,300 1,250
--------
5,388
--------
CHEMICALS -- 2.6%
IMC Global 107,300 3,232
Monsanto 92,400 5,163
Praxair 141,100 6,605
--------
15,000
--------
COMMUNICATIONS EQUIPMENT -- 2.8%
ITT Industries 39,600 1,480
Lucent Technologies 180,200 14,990
--------
16,470
--------
COMPUTERS & SERVICES -- 9.2%
America Online* 86,100 9,127
Bay Networks* 183,200 5,908
Computer Associates
International 91,000 5,056
International Business Machines 47,100 5,408
Jabil Circuit* 79,200 2,619
Microsoft* 173,700 18,825
Storage Technology* 165,600 7,183
--------
54,126
--------
CONTAINERS & PACKAGING -- 1.1%
Crown Cork & Seal 141,570 6,725
--------
DRUGS -- 4.3%
Eli Lilly & Co. 193,000 12,750
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
CORE EQUITY FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Mylan Laboratories 316,900 $ 9,527
Pfizer 25,800 2,804
--------
25,081
--------
ELECTRICAL SERVICES -- 1.7%
AES* 130,700 6,870
FPL Group 49,000 3,087
--------
9,957
--------
ENERGY & POWER -- 0.8%
Calenergy* 148,500 4,464
--------
ENVIRONMENTAL SERVICES -- 0.6%
Browning Ferris Industries 108,900 3,784
--------
FINANCIAL SERVICES -- 1.1%
Lehman Brothers Holdings 86,600 6,717
--------
FOOD, BEVERAGE & TOBACCO -- 5.8%
Canandaigua Wine, Class A* 182,005 8,952
Chiquita Brands International 653,400 9,188
Nabisco Holdings, Class A 325,300 11,731
RJR Nabisco Holdings 169,400 4,023
--------
33,894
--------
HOTELS & LODGING -- 0.7%
Hilton Hotels 140,000 3,990
--------
HOUSEHOLD PRODUCTS -- 0.6%
Sunbeam Oster 319,713 3,317
--------
INSURANCE -- 12.4%
Ace Limited 46,200 1,802
Aetna 59,800 4,552
Allstate 89,100 8,158
Conseco 177,700 8,307
Everest Reinsurance Holdings 486,800 18,711
Hartford Financial
Services Group 62,000 7,091
Hartford Life, Class A 96,800 5,512
Travelers 302,000 18,309
--------
72,442
--------
MACHINERY -- 1.7%
Case 42,000 2,027
Cummins Engine 26,500 1,358
Harnischfeger Industries 88,700 2,511
Thermo Electron* 111,400 3,808
--------
9,704
--------
MEDICAL PRODUCTS & SERVICES -- 4.6%
Boston Scientific* 173,300 12,413
Human Genome Sciences* 82,900 2,958
Med Partners* 574,000 4,592
United States Surgical 148,900 6,794
--------
26,757
--------
METALS & MINING -- 0.6%
Freeport-McMoran Copper
and Gold, Class B 119,300 1,812
Potash of Saskatchewan 24,800 1,874
--------
3,686
--------
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES -- 2.3%
Cendant* 636,200 $ 13,281
--------
MISCELLANEOUS MANUFACTURING -- 3.5%
General Electric 190,200 17,308
Metromedia International Group* 256,700 3,064
--------
20,372
--------
PETROLEUM & FUEL PRODUCTS -- 2.5%
Apache 74,700 2,353
R&B Falcon* 108,900 2,464
Tidewater 70,000 2,310
Triton Energy* 65,400 2,334
USX Marathon Group 154,000 5,284
--------
14,745
--------
PETROLEUM REFINING -- 5.3%
British Petroleum ADR 130,039 11,476
Mobil 218,800 16,766
Texaco 51,300 3,062
--------
31,304
--------
PRINTING & PUBLISHING -- 1.9%
News ADR 396,100 11,190
--------
RAILROADS -- 0.7%
Burlington Northern Santa Fe 27,200 2,671
CSX 29,800 1,356
--------
4,027
--------
REAL ESTATE -- 0.7%
Glenborough Realty Trust 150,000 3,956
--------
RETAIL -- 7.5%
Abercrombie & Fitch, Class A* 110,300 4,853
Apple South 108,900 1,423
CML Group 256,700 497
Corporate Express* 272,300 3,455
Gap 50,200 3,094
General Nutrition* 296,300 9,222
Kroger* 47,900 2,054
Landry's Seafood Restaurants* 24,000 434
Lowes 138,400 5,614
Pep Boys - Manny, Moe & Jack 108,800 2,060
Rite Aid 158,300 5,946
Saks Holdings* 188,100 5,196
--------
43,848
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 1.6%
Texas Instruments 106,400 6,204
VLSI Technology* 178,200 2,990
--------
9,194
--------
TELEPHONES & TELECOMMUNICATION -- 9.3%
Airtouch Communications* 271,800 15,883
McLeodUSA, Class A* 54,300 2,111
Qualcomm* 85,300 4,793
Qwest Communications Int'l* 94,100 3,282
Star Telecommunications* 168,300 3,766
Worldcom* 502,000 24,316
--------
54,151
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
CORE EQUITY FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------
TRUCKING -- 0.3%
CNF Transportation 39,600 $ 1,683
--------
WATER TREATMENT -- 1.5%
U.S. Filter* 321,800 9,031
--------
TOTAL COMMON STOCKS
(Cost $461,209) 583,085
--------
REPURCHASE AGREEMENTS -- 0.3%
Goldman Sachs
5.650%, dated 06/30/98, matures
07/01/98, repurchase price $987,155
(collateralized by U.S. Treasury
Note, par value $970,000,
6.375%, 03/31/01;
market value $1,007,048) $987 987
State Street Bank & Trust
5.750%, dated 06/30/98, matures
07/01/98, repurchase price $987,158
(collateralized by U.S. Treasury
Note, par value $985,000,
6.250%, 03/31/99;
market value $1,006,001) 987 987
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,974) 1,974
--------
TOTAL INVESTMENTS -- 100.0%
(Cost $463,183) 585,059
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.0% (214)
--------
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 50 million authorized shares)
based on 25,145,364 outstanding
shares of beneficial interest $375,693
Portfolio Shares of Class A ($.001
par value -- 50 million authorized shares)
based on 914,469 outstanding
shares of beneficial interest 13,324
Portfolio Shares of Class B ($.001
par value -- 50 million authorized shares)
based on 15,639 outstanding shares
of beneficial interest 338
Accumulated Net Realized Gain
on Investments 73,614
Net Unrealized Appreciation
on Investments 121,876
--------
TOTAL NET ASSETS -- 100.0% $584,845
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $22.43
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $22.43
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $22.33
========
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
GROWTH EQUITY FUND
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
COMMON STOCKS -- 93.4%
AIR TRANSPORTATION -- 1.1%
Southwest Airlines 81,000 $ 2,400
--------
BANKS -- 4.1%
BankAmerica 24,000 2,074
Crestar Financial 49,000 2,674
Southtrust 90,000 3,915
--------
8,663
--------
BEAUTY PRODUCTS -- 2.0%
Colgate Palmolive 24,400 2,147
Procter & Gamble 22,904 2,086
--------
4,233
--------
BROADCASTING, CABLE TV, NEWSPAPERS
& ADVERTISING -- 5.1%
CBS 70,400 2,235
Time Warner, Class A 55,800 4,767
Univision Communications* 102,000 3,800
--------
10,802
--------
COMMUNICATIONS EQUIPMENT -- 5.4%
Ascend Communications* 108,000 5,353
Cisco Systems* 65,850 6,062
--------
11,415
--------
COMPUTERS & SERVICES -- 14.7%
America Online* 61,500 6,519
BMC Software* 98,000 5,090
Compaq Computer 132,036 3,747
Dell Computer* 42,000 3,898
EMC* 90,000 4,033
Microsoft* 45,010 4,878
Peoplesoft* 66,382 3,120
--------
31,285
--------
DRUGS -- 7.9%
American Home Products 42,000 2,174
Monsanto 73,000 4,079
Pfizer 18,000 1,956
Schering Plough 50,000 4,581
Warner Lambert 57,000 3,954
--------
16,744
--------
ELECTRICAL EQUIPMENT -- 2.0%
General Electric 47,178 4,293
--------
ENTERTAINMENT -- 1.7%
Walt Disney 35,000 3,677
--------
FINANCIAL SERVICES -- 3.4%
FHLMC 85,000 4,000
FNMA 54,000 3,281
--------
7,281
--------
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.6%
Bestfoods 600 $ 35
Corn Products International* 4,075 138
Hershey Foods 45,751 3,157
--------
3,330
--------
HEALTHCARE SERVICES -- 2.1%
Health Management Associates* 135,037 4,515
--------
INSURANCE -- 3.9%
Allstate 47,400 4,340
American International Group 27,600 4,030
--------
8,370
--------
MEDICAL INFORMATION SYSTEMS -- 2.3%
HBO 140,000 4,935
--------
MEDICAL PRODUCTS & SERVICES -- 1.5%
Cardinal Health 35,000 3,281
--------
MISCELLANEOUS CHEMICAL PRODUCTS -- 0.1%
Solutia 6,820 196
--------
PETROLEUM REFINING -- 0.9%
Halliburton 41,000 1,827
--------
PRINTING & PUBLISHING -- 1.0%
Gannett 30,500 2,167
--------
RETAIL -- 13.5%
Costco 70,930 4,473
Dayton-Hudson 90,600 4,394
Dollar General 94,922 3,755
Family Dollar Stores 133,002 2,461
Gap 50,242 3,096
Home Depot 40,000 3,323
Walgreen 84,000 3,470
Whole Foods Market* 62,000 3,751
--------
28,723
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.0%
Intel 55,450 4,110
--------
TECHNOLOGY, SERVICES -- 4.3%
Automatic Data Processing 30,000 2,186
Metamor Worldwide* 80,000 2,815
Paychex 103,500 4,211
--------
9,212
--------
TELEPHONES & TELECOMMUNICATION -- 12.8%
ICG Communications* 124,000 4,534
Intermedia Communications
of Florida* 124,000 5,200
McLeod USA, Class A* 82,000 3,188
Qwest Communications Int'l* 120,000 4,185
Tel-Save Holdings* 255,300 3,766
Worldcom* 129,750 6,285
--------
27,158
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
GROWTH EQUITY FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $136,179) $198,617
--------
REPURCHASE AGREEMENTS -- 6.4%
Goldman Sachs
5.650%, dated 06/30/98, matures
07/01/98, repurchase price
$4,567,717 (collateralized by
U.S. Treasury Note, par value
$4,500,000, 6.375%, 03/31/01;
market value $4,671,874) $4,567 4,567
Hong Kong Shanghai Bank
5.650%, dated 06/30/98, matures
07/01/98, repurchase price
$4,567,717 (collateralized by
U.S. Treasury Note, par value
$4,425,000, 6.375%, 08/15/02;
market value $4,672,630) 4,567 4,567
State Street Bank & Trust
5.750%, dated 06/30/98, matures
07/01/98, repurchase price
$4,567,729 (collateralized by U.S.
Treasury Note, par value $4,565,000,
6.250%, 03/31/99;
market value $4,662,330) 4,567 4,567
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $13,701) 13,701
--------
TOTAL INVESTMENTS -- 99.8%
(Cost $149,880) 212,318
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.2% 481
--------
- --------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y
($.001 par value -- 100 million
authorized shares) based on
10,300,999 outstanding shares
of beneficial interest $109,609
Portfolio Shares of Class A
($.001 par value -- 100 million
authorized shares) based on 338,863
outstanding shares of
beneficial interest 3,795
Portfolio Shares of Class B
($.001 par value -- 100 million
authorized shares) based on 8,567
outstanding shares of
beneficial interest 150
Accumulated Net Realized Gain
on Investments 36,807
Net Unrealized Appreciation
on Investments 62,438
--------
TOTAL NET ASSETS -- 100.0% $212,799
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $19.99
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $19.90
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $19.72
========
* NON-INCOME PRODUCING SECURITY
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
SPECIAL EQUITY FUND
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
COMMON STOCKS -- 98.4%
AIR TRANSPORTATION -- 1.2%
Midway Airlines* 46,500 $ 889
--------
AIRCRAFT -- 0.4%
Boeing 6,750 301
--------
APPAREL/TEXTILES -- 1.4%
Gildan Activewear* 111,600 725
Haggar 20,000 255
Mothers Work* 17,500 122
--------
1,102
--------
APPLIANCES -- 0.0%
Perkin-Elmer Corporate Warrants* 456 2
--------
AUTOMOTIVE -- 0.3%
Transportation Components* 27,900 262
--------
BUILDING & CONSTRUCTION -- 5.2%
Comfort Systems USA* 40,000 935
Foster Wheeler 20,000 429
Jacobs Engineering Group* 29,500 948
Royal Group Technologies* 27,500 797
Shaw Group* 35,000 910
--------
4,019
--------
COMMUNICATIONS EQUIPMENT -- 4.2%
ITT Industries 3,000 112
Lucent Technologies 12,000 998
Scientific-Atlanta 31,000 787
VDI Media* 115,100 1,122
Vicon Industries* 30,000 236
--------
3,255
--------
COMPUTERS & SERVICES -- 7.3%
America Online* 16,000 1,696
Box Hill Systems* 27,900 194
Computer Associates International 6,000 333
Global Imaging Systems* 37,200 521
International Business Machines 4,500 517
Jabil Circuit* 24,000 793
Mecon* 62,000 643
Mylex* 75,000 506
Storage Technology* 9,800 425
--------
5,628
--------
DRUGS -- 9.6%
Anesta* 45,200 653
Cellegy Pharmaceuticals* 46,500 259
ChiRex* 68,000 1,194
Collagenex Pharmaceuticals* 46,300 399
Flamel Technologies ADR* 97,700 488
Guilford Pharmaceuticals* 40,500 714
Isis Pharmaceutical* 27,300 374
Megabio* 41,850 319
Pharmaceutical Resources* 105,000 479
Roberts Pharmaceuticals* 12,500 287
Scios Nova* 205,000 1,819
Titan Pharmaceuticals* 85,000 393
--------
7,378
--------
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
ELECTRICAL EQUIPMENT -- 3.0%
Kuhlman 32,500 $ 1,286
Magnetek* 65,000 1,024
--------
2,310
--------
ELECTRONICS -- 0.3%
Lam Research* 12,700 243
--------
ENTERTAINMENT -- 0.9%
Mikohn Gaming* 110,000 701
--------
ENVIRONMENTAL SERVICES -- 0.8%
Newpark Resources* 42,500 473
Philip Services* 32,500 134
--------
607
--------
FINANCIAL SERVICES -- 5.2%
Aames Financial 46,500 639
Affiliated Managers Group* 11,160 414
Consolidation Capital* 55,800 1,255
Delta Financial* 34,700 638
Imperial Credit* 41,800 546
WFS Financial* 69,000 483
--------
3,975
--------
FOOD, BEVERAGE & TOBACCO -- 0.5%
Omega Protein 9,300 149
RJR Nabisco Holdings 10,900 259
--------
408
--------
HOTELS & LODGING -- 0.8%
John Q. Hammons Hotels* 9,600 68
Prime Hospitality* 31,500 549
--------
617
--------
HOUSEHOLD FURNISHINGS -- 2.1%
O'Sullivan 44,400 433
Winsloew Furniture* 44,180 1,193
--------
1,626
--------
INSURANCE -- 2.9%
Conseco 12,000 561
Everest Reinsurance Holdings 21,300 819
Travelers 13,750 834
--------
2,214
--------
MACHINERY -- 0.9%
Case 10,000 482
Cummins Engine 3,500 179
--------
661
--------
MEASURING DEVICES -- 0.7%
Teradyne* 21,300 570
--------
MEDICAL PRODUCTS & SERVICES -- 7.3%
Acme United* 129,200 517
American Retirement* 23,000 408
Centennial Heathcare* 37,500 680
Computer Motion* 80,000 1,040
Med Partners* 45,000 360
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
SPECIAL EQUITY FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Progenics Pharmaceuticals* 75,000 $ 1,116
Resound* 47,400 311
U.S. Surgical 15,400 703
Urologix* 26,500 225
Vision Twenty-One* 46,500 296
--------
5,656
--------
METALS & MINING -- 0.5%
Freeport-McMoran Copper
and Gold, Class B 25,000 380
--------
MISCELLANEOUS BUSINESS SERVICES -- 2.0%
Cendant* 55,000 1,148
Mac-Gray* 28,000 357
--------
1,505
--------
MISCELLANEOUS MANUFACTURING -- 1.1%
Gart Sports* 3,000 38
RMI Titanium* 35,000 796
--------
834
--------
PETROLEUM & FUEL PRODUCTS -- 2.8%
Bayard Drilling Technologies* 65,300 531
Callon Petroleum* 9,000 129
IRI International* 65,000 719
Meridian Resource* 68,256 482
Tidewater 10,000 330
--------
2,191
--------
RAILROADS -- 1.0%
Burlington Northern Santa Fe 8,000 785
--------
REAL ESTATE -- 1.7%
AMB Property* 53,600 1,313
--------
RESTAURANTS/FOOD SERVICES -- 0.4%
Uno Restaurant* 44,800 330
--------
RETAIL -- 7.0%
Apple South 65,000 849
Bon-Ton Stores* 46,300 744
CDnow* 9,300 187
CML Group 92,200 179
Corporate Express* 27,500 349
Drug Emporium* 92,100 357
Gap 10,200 629
General Nutrition* 33,000 1,027
Microage* 22,500 319
Paul Harris Stores* 60,000 795
--------
5,435
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 1.9%
Mips Technologies* 50,000 672
VLSI Technology* 45,000 755
--------
1,427
--------
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
SPECIALTY CONSTRUCTION -- 3.0%
Horizon Offshore* 50,000 $ 491
Oakwood Homes 25,000 750
Quanta Services Com* 75,000 1,102
--------
2,343
--------
STEEL & STEEL WORKS -- 1.2%
Ispat International, Class A* 18,690 350
Lone Star Technologies* 37,000 564
--------
914
--------
TECHNOLOGY, SERVICES -- 1.0%
Verio* 31,500 784
--------
TELEPHONES & TELECOMMUNICATION -- 17.9%
Airtouch Communications* 16,000 935
Amnex* 102,300 115
Clearnet, Class A* 70,000 770
Hybrid Networks* 44,600 98
Hyperion Telecommunications,
Class A* 50,000 784
Intermedia Communications
of Florida* 14,800 621
McLeod, Class A* 10,000 389
Metromedia Fiber Network* 21,500 1,002
Metronet Communication* 46,500 1,314
MGC Communications* 45,000 686
Nextlink Communications* 32,500 1,231
Qualcomm* 11,500 646
Qwest Communications Int'l* 25,000 872
Star Telecommunications* 32,500 727
US LEC* 50,000 1,044
Viatel* 80,000 1,360
Worldcom* 25,000 1,211
--------
13,805
--------
TRUCKING -- 1.0%
Arkansas Best* 80,150 751
--------
WATER TREATMENT -- 0.9%
U.S. Filter* 25,500 716
--------
TOTAL COMMON STOCKS
(Cost $70,071) 75,937
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
SPECIAL EQUITY FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
REPURCHASE AGREEMENT -- 1.5%
State Street Bank & Trust
5.750%, dated 06/30/98, matures
07/01/98, repurchase price $1,166,186
(collateralized by U.S. Treasury Note,
par value $1,160,000,
6.25%, 07/31/98;
market value $1,190,948) $1,166 $ 1,166
--------
TOTAL REPURCHASE AGREEMENT
(Cost $1,166) 1,166
--------
TOTAL INVESTMENTS -- 99.9%
(Cost $71,237) 77,103
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 105
--------
NET ASSETS:
Portfolio Shares of Class Y
($.001 par value -- 1 billion
authorized shares) based on
6,575,626 outstanding shares of
beneficial interest 63,478
Portfolio Shares of Class A
($.001 par value -- 1 billion
authorized shares) based on
266,523 outstanding shares of
beneficial interest 2,855
Portfolio Shares of Class B
($.001 par value -- 1 billion
authorized shares) based on
22,309 outstanding shares
of beneficial interest 257
Distributions in Excess of Net
Investment Income (4)
Accumulated Net Realized Gain
on Investments 4,756
Net Unrealized Appreciation
on Investments 5,866
--------
TOTAL NET ASSETS -- 100.0% $ 77,208
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $11.25
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $11.18
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $11.02
========
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPTS
INTERNATIONAL GROWTH FUND
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
FOREIGN STOCKS -- 95.1%
ARGENTINA -- 0.3%
Banco Frances ADR 3,025 $ 69
Irsa GDR 2,400 70
YPF ADR 2,500 75
YPF Sociedad Anonima ADR 13,000 391
--------
605
--------
AUSTRALIA -- 1.5%
Australian Gas Light 60,000 376
Lend Lease 29,700 602
Mayne Nickless 93,000 494
QBE Insurance 187,500 664
Woodside Petroleum 98,000 491
--------
2,627
--------
BRAZIL -- 0.9%
Centrais Electricas GDR 750 62
Centrais Geradoras ADR 2,030 14
Companhia Brasileira de
Distribuicao Grupo de
Acucar ADR 6,000 136
Companhia Paranese 17,000 157
Electrobras ADR 20,300 294
Telebras ADR 8,720 952
--------
1,615
--------
CHILE -- 0.1%
Santa Isabel ADR* 698 8
Telecom de Chile ADR 11,000 223
Telecom de Chile ADR Rights* 11,000 4
--------
235
--------
DENMARK -- 0.6%
Unidanmark 10,900 981
--------
FINLAND -- 1.9%
Nokia Oyj, Class A 41,460 3,054
Raisio Group 15,000 273
--------
3,327
--------
FRANCE -- 13.4%
Air Liquide 9,843 1,628
Alstom 10,750 354
AXA 36,350 1,197
Cie Generale des Eaux 19,948 4,259
Cie Generale des Eaux Warrants* 2,000 4
Dassault Systemes 9,680 456
France Telecom* 7,250 500
Groupe Danone 1,800 496
Paribas 6,500 696
Promodes 3,900 2,161
Rhone Poulenc 48,700 2,747
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
INTERNATIONAL GROWTH FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Schneider 3,250 $ 259
SGS-Thomson Microelectronics* 2,700 191
Societe Generale 12,700 2,640
Societe Nationale Elf Aquitaine 23,340 3,281
--------
23,855
--------
GERMANY -- 13.3%
Allianz 12,350 4,120
Allianz - New 280 93
Bayer 9,100 471
Bayer Vereinsbank 35,600 3,021
BMW New* 465 464
BMW 1,550 1,569
Deutsche Bank 32,800 2,776
Hoechst 2 --
Mannesmann 40,000 4,115
Muenchener Rueckvers 770 383
Preussag 5,000 1,791
SAP* 3,500 2,378
Veba 39,949 2,615
--------
23,796
--------
GREECE -- 0.4%
Alpha Credit Bank 9,200 747
Alpha Credit Bank Rights* 754 12
--------
759
--------
HONG KONG -- 1.7%
China Light & Power 82,000 374
China Telecom (Hong Kong)* 270,000 469
Giordano 750,000 152
HSBC Holdings 10,000 245
Hutchison Whampoa 78,000 412
National Mutual Asia 600,000 383
New World Development 224,000 434
Swire Pacific, Series A 150,000 566
--------
3,035
--------
HUNGARY -- 0.6%
Graboplast 2,700 68
Mol Magyar Olaj-Es GDR 28,000 755
Richter Gedeon 2,500 201
--------
1,024
--------
INDIA -- 1.0%
Himilayan Fund* 30,818 237
ICICI GDR 60,000 548
Indian Opportunities Fund* 41,981 336
Mahanagar Telephone
Nigam GDR* 33,000 346
Videsh Sanchar Nigam GDR* 35,000 362
--------
1,829
--------
INDONESIA -- 0.2%
Bank Bali "F" 600,000 35
Indosat "F" 275,000 323
--------
358
--------
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
ISRAEL -- 1.1%
Near East Opportunity Fund* 59,000 $ 950
Tadarin Limited 8,032 265
Teva Pharmaceuticals ADR 20,000 704
--------
1,919
--------
ITALY -- 5.2%
Assicurazioni Generali 2,075 68
ENI SPA 255,967 1,679
INA 725,000 2,061
Istituto Bancario San Paolo
di Torino 18,250 264
Istituto Mobiliare Italy 161,600 2,547
Telecom Italia 56,595 417
Telecom Italia Mobile 350,000 2,142
--------
9,178
--------
JAPAN -- 11.4%
77th Bank 33,000 276
Asahi Chemical Industries 116,000 418
Canon 68,000 1,542
Fuji Photo Film 23,000 800
Hitachi 116,000 756
Honda Motor 41,000 1,458
Hoya 8,000 226
Ito Yokado 31,000 1,458
Kao 79,000 1,217
Kyocera 4,000 195
Mabuchi Motor 10,000 634
Marui Company 44,000 656
Mitsui Fudosan 44,000 347
Promise 10,000 411
Riso Kagaku Corporation 7,100 419
Rohm Company 15,000 1,539
Secom 19,000 1,096
Shimachu 20,000 328
Shin-Etsu Chemical 62,000 1,071
Sony Corporation 22,200 1,910
Suzuki Motor 24,000 218
Taisho Pharmaceutical 33,000 615
Toppan Printing 103,000 1,101
Toyota Motor 24,000 620
Yamanouchi Pharmaceutical 46,000 957
--------
20,268
--------
MALAYSIA -- 0.3%
AMMB Holdings Warrants* 10,000 1
Malaysian Oxygen 200,000 447
--------
448
--------
MEXICO -- 1.2%
Cifra, Series C 220,000 304
Grupo Carso 65,000 274
Grupo Elektra 85,800 84
Grupo Financiero Banamex
Accival, Series B* 195,000 370
Grupo Modelo, Series C 17,000 141
Grupo Radio Centro ADR 6,600 73
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
INTERNATIONAL GROWTH FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
Grupo Televisa GDR 2,700 $ 102
Industrias CH, Series B* 19,800 65
Panamerican Beverage, Series A 6,000 189
Telefonos de Mexico ADR,
Series L 10,300 495
--------
2,097
--------
NETHERLANDS -- 1.8%
Baan 10,500 378
Elsevier 128,000 1,933
Fortis Amev 7,900 463
Royal Dutch Petroleum 6,290 349
Wolters Kluwer 800 110
--------
3,233
--------
NEW ZEALAND -- 0.2%
Telecom of New Zealand 90,000 372
--------
PERU -- 0.0%
Credicorp 4,653 68
--------
PHILIPPINES -- 0.2%
Ayala Land 1,200,000 347
Belle Warrants* 800,000 1
--------
348
--------
POLAND -- 0.2%
Bank Handlowy GDR* 14,000 267
--------
SINGAPORE -- 0.2%
Development Bank of
Singapore "F" 74,100 412
--------
SOUTH AFRICA -- 0.1%
NBS Boland Group 121,500 157
--------
SOUTH KOREA -- 0.0%
Samsung Electronics 2,463 21
--------
SPAIN -- 3.8%
Acerinox SA 1,200 160
Argentaria 15,600 350
Banco Bilbao Vizcaya 7,400 380
Banco Central Hispano Americano 55,000 1,729
Banco de Santander 118,800 3,042
Corp Financiera Reunida* 48,200 728
Endesa 15,800 346
--------
6,735
--------
SWEDEN -- 3.7%
Astra A 58,900 1,204
Astra AB, Class A 44,100 902
Ericsson Telephone ADR 16,720 479
Ericsson, Series B 3,480 102
Fastighets Balder Units 4,700 5
Granges 20,000 366
Incentive AB, Series A 95,000 1,746
Nordbanken Holding AB 216,000 1,585
Svenska Handlesbanken A 4,700 218
--------
6,607
--------
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
SWITZERLAND -- 6.5%
Credit Suisse Group 18,000 $ 4,011
Novartis 2,580 4,299
Roche 36 354
UBS AG 7,031 2,618
Zurich Insurance 580 371
--------
11,653
--------
TAIWAN -- 0.8%
Standard Foods Taiwan GDR* 74,338 859
Taiwan American Fund 34,500 549
--------
1,408
--------
THAILAND -- 0.1%
Ruam Pattana Fund II* 1,281,000 112
Thai Farmers Bank "F" 56,000 49
--------
161
--------
TURKEY -- 0.1%
Turkiye Isbank GDR 62,500 259
--------
UNITED KINGDOM -- 22.3%
Brit-Borneo Petroleum Syndicate 45,000 224
British Aerospace 57,900 444
Cable & Wireless 166,000 2,018
Compass Group 34,400 396
General Electric 158,000 1,363
GKN 123,000 1,568
Glaxo Wellcome 75,000 2,253
Halifax 28,200 366
JJB Sports 34,200 267
Ladbroke 401,430 2,205
Land Securities 98,000 1,518
Lasmo 265,318 1,063
Lloyds TSB Group 182,900 2,561
Logica 24,342 787
Manchester United 115,400 305
Marks & Spencer 164,000 1,494
McKechnie 76,500 557
National Westminster Bank 89,000 1,592
Next 24,500 211
NFC 333,000 934
Prudential 28,100 370
Railtrack Group 28,090 689
Reckitt & Coleman 98,500 1,882
Reed International 5,585 51
Rentokil Group 79,000 569
Royal Bank of Scotland 96,000 1,667
Safeway 158,144 1,036
Scottish Power 212,000 1,858
Shell Transportation & Trading 320,900 2,261
SmithKline Beecham 54,660 668
Smiths Industries 97,782 1,355
Southern Electric 33,400 302
Tesco 55,750 545
Thames Water 15,000 273
Unilever 214,800 2,288
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
INTERNATIONAL GROWTH FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION SHARES/PAR (000)(1) VALUE (000)
- -------------------------------------------------------
Vodafone Group 7,090 $ 90
Wassall 119,625 596
Zeneca Group 26,820 1,152
--------
39,778
--------
VENEZUELA -- 0.0%
Cia Anonima Telecom ADR 2,000 50
--------
TOTAL FOREIGN STOCKS
(Cost $138,306) 169,485
--------
FOREIGN PREFERRED STOCK -- 0.9%
BRAZIL --0.4%
Centrais Geradoras ADR 900 6
Eletrobras ADR* 9,000 137
Petroleo Brasileira ADR* 35,000 651
--------
794
--------
GERMANY -- 0.5%
Fresenius* 1,070 203
Wella* 550 616
--------
819
--------
TOTAL FOREIGN PREFERRED STOCK
(Cost $1,445) 1,613
--------
CONVERTIBLE BONDS -- 1.4%
JAPAN -- 1.4%
Mitsubishi Bank
3.000%, 11/30/02 1,127 1,085
Nitto Denko
2.200%, 03/31/99 74,000 593
Sakura Finance
0.750%, 10/01/01 36,000 181
Sanwa Bank
1.250%, 08/01/05 99,000 724
--------
2,583
--------
TOTAL CONVERTIBLE BONDS
(Cost $2,931) 2,583
--------
DEMAND DEPOSIT -- 2.3%
Morgan Stanley
4.15%, 07/01/98 $4,165 4,165
--------
TOTAL DEMAND DEPOSIT
(Cost $4,165) 4,165
--------
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
TOTAL INVESTMENTS -- 99.7%
(Cost $146,847) $177,846
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% 491
--------
NET ASSETS:
Portfolio Shares of Class Y
($.001 par value -- 25 million
authorized) based on
11,686,614 outstanding
shares of beneficial interest 138,471
Portfolio Shares of Class A
($.001 par value -- 25 million
authorized) based on
169,608 outstanding shares
of beneficial interest 2,179
Portfolio Shares of Class B
($.001 par value -- 25 million
authorized) based on
3,928 outstanding shares
of beneficial interest 54
Distributions in Excess of Net
Investment Income (1,074)
Accumulated Net Realized Gain
on Investments 6,866
Net Unrealized Appreciation on Forward
Foreign Currency Contracts, Foreign
Currency and Translation of Other
Assets and Liabilities in Foreign Currency 842
Net Unrealized Appreciation
on Investments 30,999
--------
TOTAL NET ASSETS -- 100.0% $178,337
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $15.03
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $15.01
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $14.96
========
* NON-INCOME PRODUCING SECURITY
(1) IN LOCAL CURRENCY UNLESS OTHERWISE INDICATED.
ADR -- AMERICAN DEPOSITORY RECEIPTS
"F" -- FOREIGN SHARES
GDR -- GLOBAL DEPOSITORY RECEIPTS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
BALANCED FUND
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
COMMON STOCKS -- 64.8%
AIR TRANSPORTATION -- 0.8%
Southwest Airlines 38,940 $ 1,154
--------
BANKS -- 3.8%
BankAmerica 15,700 1,357
Crestar Financial 33,000 1,801
Southtrust 50,000 2,175
--------
5,333
--------
BEAUTY PRODUCTS -- 0.7%
Procter & Gamble 9,958 907
--------
BROADCASTING, CABLE TV, NEWSPAPERS
& ADVERTISING -- 3.5%
CBS 47,000 1,492
Time Warner, Class A 26,000 2,221
Univision Communications* 33,165 1,235
--------
4,948
--------
COMMUNICATIONS EQUIPMENT -- 3.7%
Ascend Communications* 49,800 2,468
Cisco Systems* 29,400 2,707
--------
5,175
--------
COMPUTERS & SERVICES -- 9.0%
America Online* 35,000 3,710
Compaq Computer 44,133 1,252
Dell Computer* 20,000 1,856
EMC* 40,000 1,792
Microsoft* 24,000 2,601
Peoplesoft* 30,190 1,419
--------
12,630
--------
DRUGS -- 7.0%
American Home Products 18,000 931
Glaxo ADR 29,400 1,758
Monsanto 38,000 2,123
Pfizer 8,500 924
Schering Plough 25,000 2,291
Warner Lambert 27,000 1,873
--------
9,900
--------
ELECTRICAL EQUIPMENT -- 2.0%
Emerson Electric 17,300 1,043
General Electric 20,200 1,838
--------
2,881
--------
ENTERTAINMENT -- 1.2%
Walt Disney 16,500 1,734
--------
FINANCIAL SERVICES -- 2.3%
FHLMC 44,000 2,071
FNMA 19,000 1,154
--------
3,225
--------
- -------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.1%
Hershey Foods 23,027 $ 1,589
--------
HEALTHCARE SERVICES -- 1.4%
Health Management Associates* 59,000 1,973
--------
INSURANCE -- 2.3%
Allstate 17,000 1,557
American International Group 12,000 1,752
--------
3,309
--------
MEDICAL INFORMATION SYSTEMS -- 1.6%
HBO 64,000 2,256
--------
MEDICAL PRODUCTS & SERVICES -- 1.1%
Cardinal Health 16,000 1,500
--------
PRINTING & PUBLISHING -- 0.7%
Gannett 13,000 924
--------
PROFESSIONAL SERVICES -- 0.7%
Halliburton 22,000 980
--------
RETAIL -- 8.6%
Costco* 35,000 2,207
Dayton-Hudson 46,400 2,250
Dollar General 43,867 1,735
Family Dollar Stores 58,334 1,079
Gap 22,425 1,382
Home Depot 20,000 1,661
Whole Foods Market* 30,000 1,815
--------
12,129
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 1.2%
Intel 23,000 1,705
--------
TECHNOLOGY, SERVICES -- 4.7%
Automatic Data Processing 14,000 1,020
BMC Software* 38,000 1,974
Metamor Worldwide* 42,000 1,478
Paychex 52,038 2,117
--------
6,589
--------
TELEPHONES & TELECOMMUNICATION -- 7.4%
ICG Communications* 55,000 2,011
Intermedia Communications
of Florida* 36,000 1,510
McLeod, Class A* 34,000 1,322
Qwest Communications Int'l* 60,000 2,093
Tel-Save Holdings* 106,000 1,563
Worldcom* 39,900 1,933
--------
10,432
--------
TOTAL COMMON STOCKS
(Cost $64,835) 91,273
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
BALANCED FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 12.6%
U.S. Treasury Bonds
6.000%, 08/15/99 $1,500 $ 1,508
7.250%, 05/15/16 500 585
8.750%, 05/15/17 665 895
U.S. Treasury Notes
9.250%, 08/15/98 1,620 1,628
8.875%, 11/15/98 1,105 1,119
8.875%, 02/15/99 110 112
6.000%, 06/30/99 2,000 2,010
6.000%, 10/15/99 500 503
5.875%, 11/15/99 2,000 2,009
7.750%, 11/30/99 700 721
6.375%, 01/15/00 500 506
7.500%, 11/15/01 3,235 3,424
6.625%, 03/31/02 1,000 1,035
7.500%, 02/15/05 600 664
6.500%, 08/15/05 500 527
6.875%, 05/15/06 500 541
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $17,488) 17,787
--------
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS -- 6.2%
FHLMC
6.440%, 01/28/00 500 506
8.025%, 09/15/06 1,000 1,005
6.000%, 05/01/08 574 569
5.500%, 11/01/08 522 507
8.055%, 09/30/11 1,000 1,006
FNMA
5.940%, 12/12/05 500 505
6.500%, 08/01/10 200 202
6.500%, 09/01/10 259 261
6.500%, 11/01/24 423 421
GNMA
7.500%, 10/15/11 2,151 2,220
9.000%, 10/15/19 119 128
7.500%, 03/15/26 1,385 1,424
--------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS
(Cost $8,630) 8,754
--------
CORPORATE OBLIGATIONS -- 6.0%
BANKS -- 1.2%
First Bank System
6.875%, 09/15/07 500 523
Midland Bank
6.950%, 03/15/11 200 209
NationsBank
6.500%, 03/15/06 200 204
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Provident Bank
6.125%, 12/15/00 $ 25 $ 25
Royal Bank of Scotland
6.375%, 02/01/11 205 203
U.S. Bancorp
6.750%, 10/15/05 500 517
--------
1,681
--------
FINANCIAL SERVICES -- 2.6%
Chrysler Financial
6.950%, 03/25/02 500 516
CSR Finance
7.700%, 07/21/25 200 227
Donaldson Lufkin & Jenrette
6.875%, 11/01/05 185 191
Ford Motor Credit
6.375%, 04/15/00 500 504
6.250%, 11/08/00 500 503
7.500%, 01/15/03 1,000 1,051
MBNA
7.250%, 09/15/02 185 191
Merrill Lynch
7.000%, 04/27/08 250 262
Noranda
8.125%, 06/15/04 195 207
Santander
7.250%, 11/01/15 100 107
--------
3,759
--------
INDUSTRIAL -- 1.8%
Arco Chemical
10.250%, 11/01/10 210 282
Coca Cola
6.000%, 07/15/03 1,000 1,005
Dayton Hudson
8.500%, 12/01/22 500 563
ITT
7.375%, 11/15/15 360 338
Laidlaw
8.750%, 04/15/25 75 92
MacMillan Bloedel
7.700%, 02/15/26 215 213
--------
2,493
--------
UTILITIES -- 0.4%
BellSouth
7.000%, 02/01/05 500 528
--------
TOTAL CORPORATE OBLIGATIONS
(Cost $8,161) 8,461
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
STATEMENT OF NET ASSETS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
BALANCED FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
REPURCHASE AGREEMENTS -- 10.0%
Goldman Sachs
5.650%, dated 06/30/98, matures
07/01/98, repurchase price
$3,529,554 (collateralized by
U.S. Treasury Note, par value
$3,475,000, 6.375%, 03/31/01;
market value $3,607,725) $3,529 $ 3,529
Hong Kong Shanghai Bank
5.650%, dated 06/30/98, matures
07/01/98, repurchase price
$3,528,554 (collateralized by
U.S. Treasury Note, par value
$3,420,000, 6.375%, 08/15/02;
market value $3,611,389) 3,528 3,528
State Street Bank & Trust
5.750%, dated 06/30/98, matures
07/01/98, repurchase price
$3,528,564 (collateralized by
U.S. Treasury Note, par value
$3,505,000, 6.25%, 07/31/98;
market value $3,598,510) 3,528 3,528
Swiss Bank
5.850%, dated 06/30/98, matures
07/01/98, repurchase price
$3,528,573 (collateralized by
U.S. Treasury Note, par value
$3,530,000, 5.625%, 02/28/01;
market value $3,608,513) 3,528 3,528
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $14,113) 14,113
--------
TOTAL INVESTMENTS -- 99.6%
(Cost $113,227) 140,388
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.4% 553
--------
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 100 million authorized)
based on 8,617,531 outstanding
shares of beneficial interest $ 92,775
Portfolio Shares of Class A ($.001
par value -- 100 million authorized)
based on 424,588 outstanding shares
of beneficial interest 5,027
Portfolio Shares of Class B ($.001
par value -- 100 million authorized)
based on 62,896 outstanding shares
of beneficial interest 888
Undistributed Net Investment Income 4
Accumulated Net Realized Gain
on Investments 15,086
Net Unrealized Appreciation
on Investments 27,161
--------
TOTAL NET ASSETS -- 100.0% $140,941
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $15.48
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $15.49
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $15.36
========
*NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
SHORT TERM INCOME FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
CORPORATE BONDS -- 31.6%
AEROSPACE & DEFENSE -- 2.2%
Raytheon
5.950%, 03/15/01 $ 750 $ 749
--------
BANKING -- 5.7%
American Express Centurion Bank (A)
5.698%, 08/21/98 1,000 1,000
Citicorp (A)
5.888%, 11/23/99 500 502
Nationsbank
5.375%, 04/15/00 395 392
--------
1,894
--------
FINANCIAL SERVICES -- 22.2%
Associates Corporation of North America
6.250%, 03/15/99 525 526
Bear Stearns
6.250%, 12/01/00 200 201
Chrysler Financial
6.375%, 01/28/00 510 514
Fleet Mortgage Group
6.500%, 09/15/99 500 503
General Motors Acceptance (A)
5.688%, 12/09/99 700 699
General Motors Acceptance
5.950%, 04/20/01 500 499
Lehman Brothers Holdings
6.500%, 07/18/00 850 857
Mellon Financial
7.625%, 11/15/99 255 261
Morgan Stanley, Dean Witter,
Discover
5.890%, 03/20/00 750 749
Morgan Stanley Group (A)
5.728%, 02/26/99 1,250 1,250
Salomon
6.500%, 03/01/00 750 757
Sears Roebuck Acceptance
6.380%, 02/16/99 650 652
--------
7,468
--------
TELEPHONES & TELECOMMUNICATION -- 1.5%
TCI Communications
6.375%, 09/15/99 500 502
--------
TOTAL CORPORATE BONDS
(Cost $10,588) 10,613
--------
U.S. TREASURY OBLIGATIONS -- 24.7%
U.S. Treasury Notes
6.125%, 08/31/98 1,000 1,002
6.000%, 09/30/98 1,250 1,252
5.875%, 10/31/98 1,000 1,002
5.750%, 12/31/98 1,000 1,002
6.375%, 01/15/99 1,000 1,004
6.375%, 05/15/99 1,000 1,007
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
5.750%, 09/30/99 1,000 $ 1,003
6.000%, 08/15/00 1,000 1,009
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $8,263) 8,281
--------
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS -- 5.2%
FHLB
5.598%, 06/17/99 $ 750 750
FNMA
5.596%, 10/20/98 500 500
5.870%, 10/25/99 500 501
--------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS
(Cost $1,749) 1,751
--------
ASSET-BACKED SECURITIES -- 25.7%
Aames Mortgage Trust,
Series 1996-B, Class A1B
7.275%, 05/15/20 190 192
Cit Rv Owner Trust,
Series 1995-B, Class A
6.500%, 04/15/11 180 182
Contimortgage Home Equity Loan Trust,
Series 1996-4, Class A5
6.600%, 10/15/11 210 212
Contimortgage Home Equity Loan Trust,
Series 1997-4, Class A3
6.260%, 07/15/12 500 501
EQCC Home Equity Loan Trust,
Series 1996-2, Class A2
6.700%, 09/15/08 179 181
EQCC Home Equity Loan Trust,
Series 1996-4, Class A3
6.260%, 11/15/06 141 142
EQCC Home Equity Loan Trust,
Series 1997-1, Class A3
6.840%, 09/15/11 750 763
First Plus Home Loan Equity Trust,
Series 1997-3, Class A3
6.570%, 10/10/10 500 505
Heller Equipment Asset Receivables Trust,
Series 1997-1, Class A2
6.390%, 05/25/05 620 623
Independent National Mortgage,
Series 1996-A, Class A1
6.710%, 09/25/26 18 18
Money Store Home Equity Loan
Trust, Series 1993-B, Class A1
5.400%, 08/15/05 162 163
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
SHORT TERM INCOME FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Navistar Financial Owner Trust,
Series 1996-B, Class A3
6.330%, 04/21/03 $ 268 $ 270
Navistar Financial Owner Trust,
Series 1997-A, Class A2
6.350%, 01/15/00 257 258
Premier Auto Trust,
Series 1996-2, Class A4
6.575%, 10/06/00 525 529
Student Loan Marketing Association,
Series 1997-1, Class A1 (A)
5.582%, 10/25/05 580 578
Toyota Auto Lease Trust
Series 1997-A, Class A2
6.350%, 04/26/04 750 756
Union Acceptance, Series 1996-A,
Class A
5.400%, 04/07/03 352 350
Union Acceptance, Series 1996-D,
Class A2
6.170%, 10/09/02 1,800 1,814
Union Acceptance, Series 1997-A,
Class A
6.130%, 07/10/01 168 169
Vanderbilt Mortgage Finance,
Series 1997-B, Class 1A2
6.775%, 01/07/03 430 437
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $8,609) 8,643
--------
INSURANCE FUNDING AGREEMENT -- 5.9%
Allstate (A)
5.696%, 07/01/98 2,000 2,000
--------
TOTAL INSURANCE FUNDING AGREEMENT
(Cost $2,000) 2,000
--------
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
REPURCHASE AGREEMENT -- 6.4%
NationsBank
6.000%, dated 06/30/98, matures
07/01/98, repurchase price
$2,134,356 (collateralized by
various FNMA, ranging in par
value $310,000-$1,905,000,
6.000%, 05/01/13; total market
value $2,189,389) $2,134 $ 2,134
--------
TOTAL REPURCHASE AGREEMENT
(Cost $2,134) 2,134
--------
TOTAL INVESTMENTS -- 99.5%
(Cost $33,343) 33,422
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.5% 156
--------
NET ASSETS:
Portfolio Shares of Class Y
($.001 par value -- 1 billion
authorized shares) based on
3,306,324 outstanding shares
of beneficial interest $ 33,011
Portfolio Shares of Class A
($.001 par value -- 1 billion
authorized shares) based on
55,201 outstanding shares
of beneficial interest 558
Distributions in Excess of
Net Investment Income (5)
Accumulated Net Realized Loss
on Investments (65)
Net Unrealized Appreciation
on Investments 79
--------
TOTAL NET ASSETS -- 100.0% $ 33,578
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $9.99
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $9.98
========
(A) VARIABLE RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 1998.
FHLB -- FEDERAL HOME LOAN BANK
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
SHORT-INTERMEDIATE BOND FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 26.1%
U.S. Treasury Notes
8.875%, 02/15/99 $5,255 $ 5,362
5.875%, 07/31/99 3,493 3,505
6.000%, 10/15/99 3,700 3,723
5.625%, 10/31/99 3,544 3,548
7.750%, 12/31/99 4,150 4,281
5.625%, 11/30/00 8,954 8,970
5.375%, 02/15/01 4,000 3,985
8.000%, 05/15/01 3,480 3,705
6.625%, 04/30/02 200 207
7.250%, 02/15/03 180 185
7.750%, 05/15/04 2,195 2,381
6.125%, 08/15/07 3,470 3,608
5.500%, 02/15/08 2,835 2,831
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $46,164) 46,291
--------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED BONDS -- 3.0%
FHLMC
6.500%, 07/01/04 1,474 1,488
6.750%, 03/15/07 1,675 1,702
FNMA
6.500%, 08/01/10 1,183 1,191
6.500%, 10/01/10 872 877
--------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS
(Cost $5,188) 5,258
--------
CORPORATE OBLIGATIONS -- 32.6%
BANKING -- 5.3%
Banca Commerciale Italiana
8.250%, 07/15/07 682 764
Bank One
7.600%, 05/01/07 85 93
BCH Cayman Islands Limited
7.700%, 07/15/06 1,420 1,519
Branch Bank and Trust
6.375%, 06/30/05 2,850 2,839
NationsBank
5.750%, 03/15/01 4,120 4,099
--------
9,314
--------
ENTERTAINMENT -- 1.0%
Time Warner
8.110%, 08/15/06 1,690 1,855
--------
FINANCIAL SERVICES -- 18.4%
Associates Corporation of North America
6.375%, 08/15/98 1,500 1,501
6.750%, 07/15/01 1,890 1,928
Bear Stearns
6.650%, 12/01/04 1,545 1,566
CIT Group Holdings
6.375%, 08/01/02 3,720 3,762
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
General Motors Acceptance
5.875%, 01/22/03 $3,567 $ 3,505
Household Finance
6.000%, 05/08/00 3,620 3,620
Lehman Brothers
6.710%, 10/12/99 75 76
7.250%, 04/15/03 2,640 2,742
Macsaver Financial
7.600%, 08/01/07 1,289 1,315
Merrill Lynch
6.000%, 02/12/03 2,350 2,341
Morgan Stanley, Dean Witter,
Discover
5.890%, 03/20/00 3,210 3,206
Paine Webber Group
6.500%, 11/01/05 1,665 1,661
Salomon Smith Barney
6.250%, 01/15/05 2,405 2,384
Security Pacific
11.500%, 11/15/00 1,970 2,204
Societe Generale
7.400%, 06/01/06 899 950
--------
32,761
--------
FOOD, BEVERAGE & TOBACCO -- 1.8%
Nabisco
6.000%, 02/15/11 1,800 1,789
Phillip Morris (A)
6.150%, 03/15/00 1,355 1,355
--------
3,144
--------
INDUSTRIALS -- 4.5%
Barrick Gold
7.500%, 05/01/07 1,510 1,614
CSR America
6.875%, 07/21/05 1,545 1,613
Loews
6.750%, 12/15/06 1,695 1,731
Tele-Communications
7.250%, 08/01/05 1,288 1,360
USX
9.625%, 08/15/03 1,410 1,609
--------
7,927
--------
RETAIL -- 0.9%
Gap
6.900%, 09/15/07 1,585 1,660
--------
UTILITIES -- 0.7%
Penn Power and Light
7.750%, 05/01/02 1,200 1,266
--------
TOTAL CORPORATE OBLIGATIONS
(Cost $57,223) 57,927
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
SHORT-INTERMEDIATE BOND FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
ASSET-BACKED SECURITIES -- 25.1%
Case Equipment Loan Trust,
Series 1998-A, Class A4
5.830%, 02/15/05 $ 200 $ 200
Case Equipment Loan Trust,
Series 1997-5, Class A4
6.410%, 09/15/04 1,857 1,872
Citicorp Mortgage Securities,
Series 1997-1, Class A2
7.250%, 02/25/27 1,725 1,733
Contimortgage Home Equity Loan
Trust, Series 1997-2, Class A9
7.090%, 04/15/28 3,185 3,284
Contimortgage Home Equity Loan
Trust, Series 1997-4, Class A3
6.260%, 07/15/12 1,640 1,645
Countrywide Mortgage Broker
Services, Series 1997, Class A1
7.000%, 03/25/27 974 981
First Plus Home Loan Trust,
Series 1997-2, Class A5
6.820%, 04/10/23 660 678
First Plus Home Loan Trust,
Series 1997-3, Class A5
6.860%, 10/10/13 2,455 2,515
General Electric Capital Mortgage
Services, Series 1997-3, Class A4
7.500%, 04/25/27 1,408 1,416
Heller Equipment Asset Receivables
Trust, Series 1997-1, Class A2
6.390%, 05/25/05 1,339 1,346
IMC Home Equity Loan Trust,
Series 1997-2, Class A3
6.940%, 11/20/11 1,311 1,327
MBNA Credit Card Trust,
Series 1996-J, Class A (A)
5.806%, 02/15/06 2,910 2,916
MBNA Credit Card Trust
Series 1998-A, Class A (A)
5.766%, 08/15/05 1,570 1,571
Metlife Capital Equipment Loan
Trust, Series 1997-A, Class A
6.850%, 05/20/08 1,700 1,747
Money Store Home Equity Loan
Trust, Series 1996-D, Class A9
7.000%, 04/15/28 2,367 2,456
Money Store Home Equity Loan
Trust, Series 1997-D, Class A7
6.485%, 12/15/38 1,500 1,525
Premier Auto Trust, Series 1997-3,
Class A5
6.340%, 01/06/02 2,265 2,281
Premier Auto Trust, Series 1998-2,
Class A4
5.820%, 12/31/02 2,704 2,707
Residential Asset Securization Trust,
Series 1997, Class A10
7.250%, 05/25/27 1,720 1,735
Sears Credit Account Master Trust,
Series 1995-3, Class A
7.000%, 10/15/04 2,840 2,902
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Toyota Auto Lease Trust
Series 1997-A, Class A2
6.350%, 04/26/04 $3,697 $ 3,725
Union Acceptance, Series 1996-A,
Class A
5.400%, 04/07/03 936 931
WFS Financial Owners Trust
Series 1998-A, Class A4
5.950%, 02/20/03 3,200 3,199
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $44,289) 44,692
--------
REPURCHASE AGREEMENT -- 12.4%
State Street Bank & Trust
5.750%, dated 06/30/98, matures
07/01/98, repurchase price
$22,087,527 (collateralized by
various U.S. Treasury Notes,
ranging in par value $7,320,000-
$14,720,000, 6.250%, 07/31/98-
03/31/99; total market value
$22,549,133) 22,084 22,084
--------
TOTAL REPURCHASE AGREEMENT
(Cost $22,084) 22,084
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $174,948) 176,252
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 1,475
--------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 100 million
authorized) based on 17,559,253
outstanding shares of
beneficial interest 174,688
Portfolio Shares of Class A ($.001
par value -- 100 million
authorized) based on 258,477
outstanding shares of beneficial
interest 3,165
Distributions in excess of Net
Investment Income (22)
Accumulated Net Realized Loss
on Investments (1,408)
Net Unrealized Appreciation on Investments 1,304
--------
TOTAL NET ASSETS -- 100.0% $177,727
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $9.97
========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- CLASS A $9.97
========
(A) VARIABLE RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 1998.
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
GOVERNMENT INCOME FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS -- 39.3%
FNMA
7.000%, 11/01/26 $ 357 $ 363
7.500%, 05/01/27 852 874
GNMA
8.000%, 09/15/09 403 419
7.500%, 08/15/23 886 910
7.000%, 01/15/24 777 790
6.500%, 12/15/25 978 976
8.000%, 05/15/26 863 895
8.000%, 09/15/26 1,502 1,557
6.000%, 02/20/28 1,507 1,466
6.500%, 05/20/28 1,997 1,992
--------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS
(Cost $10,075) 10,242
--------
U.S. TREASURY OBLIGATIONS -- 49.1%
U.S. Treasury Bond
6.125%, 11/15/27 3,500 3,750
U.S. Treasury Notes
6.375%, 05/15/99 970 977
8.000%, 05/15/01 1,200 1,278
6.625%, 07/31/01 600 618
6.250%, 01/31/02 300 307
6.625%, 04/30/02 3,300 3,418
5.625%, 12/31/02 200 201
6.125%, 08/15/07 2,150 2,236
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $12,521) 12,785
--------
REPURCHASE AGREEMENT -- 11.0%
State Street Bank & Trust
5.750%, dated 06/30/98, matures
07/01/98, repurchase price
$2,863,457 (collateralized by
U.S. Treasury Note, par value
$2,845,000, 6.250%, 07/31/98;
market value $2,920,902) 2,863 2,863
--------
TOTAL REPURCHASE AGREEMENT
(Cost $2,863) 2,863
--------
TOTAL INVESTMENTS -- 99.4%
(Cost $25,459) 25,890
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.6% 154
--------
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 100 million
authorized shares)
based on 2,414,211
outstanding shares of
beneficial interest $23,943
Portfolio Shares of Class A ($.001
par value -- 100 million authorized
shares) based on 162,995 outstanding
shares of beneficial interest 1,650
Distributions in Excess of Net Investment Income (5)
Accumulated Net Realized Gain
on Investments 25
Net Unrealized Appreciation
on Investments 431
--------
TOTAL NET ASSETS -- 100.0% $ 26,044
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $10.11
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.11
========
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
BOND FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 27.1%
U.S. Treasury Bonds
6.500%, 11/15/26 $6,165 $ 6,841
6.125%, 11/15/27 6,739 7,221
U.S. Treasury Notes
6.500%, 04/30/99 295 297
5.875%, 07/31/99 1,500 1,505
5.625%, 10/31/99 2,135 2,137
7.750%, 01/31/00 503 520
6.750%, 04/30/00 5,525 5,640
5.625%, 11/30/00 2,400 2,404
8.000%, 05/15/01 3,795 4,040
7.500%, 11/15/01 3,835 4,059
6.250%, 02/28/02 250 256
7.250%, 05/15/04 2,709 2,938
6.125%, 08/15/07 3,245 3,375
5.625%, 05/15/08 1,600 1,621
6.125%, 08/15/07 1,655 1,721
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $43,864) 44,575
--------
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS -- 26.5%
FHLMC
6.750%, 03/15/07 2,285 2,322
7.500%, 10/01/10 1,993 2,050
8.000%, 07/01/25 2,427 2,510
FNMA
6.500%, 08/01/10 2,635 2,651
6.500%, 09/01/10 2,944 2,962
7.500%, 06/01/11 1,955 2,011
6.500%, 03/25/19 1,620 1,620
7.500%, 08/01/25 2,336 2,398
7.000%, 11/01/26 3,149 3,194
7.500%, 05/01/27 3,858 3,960
GNMA
7.500%, 12/15/25 4,306 4,425
6.500%, 04/15/26 4,595 4,586
7.000%, 06/15/26 1,747 1,782
8.000%, 12/15/26 1,530 1,586
7.500%, 06/15/27 2,215 2,276
6.500%, 05/15/28 3,197 3,190
--------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED BONDS
(Cost $42,448) 43,523
--------
ASSET-BACKED SECURITIES -- 16.5%
BankBoston RV Trust,
Series 1997-1, Class A8
6.540%, 02/15/09 1,855 1,886
Carco Auto Loan,
Series 1997-1, Class A
6.689%, 08/15/04 1,510 1,530
Case Equipment Loan Trust,
Series 1997-5, Class A4
6.410%, 09/15/04 1,815 1,830
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Citicorp Mortgage Securities,
Series 1997-1, Class A2 CMO
7.250%, 02/25/27 $1,928 $ 1,938
Countrywide Mortgage Broker
Services, Series 1997-A1,
Class A1 CMO
7.000%, 03/25/27 1,121 1,129
First Plus Home Loan Trust,
Series 1997-2, Class A5
6.820%, 04/10/23 2,200 2,260
First Plus Home Loan Trust,
Series 1997-3, Class A5
6.860%, 10/10/13 2,755 2,822
General Electric Capital Mortgage
Services, Series 1997-3,
Class A4 CMO
7.500%, 04/25/27 1,825 1,836
Heller Equipment Asset Receivables
Trust, Series 1997-1, Class A2
6.390%, 05/25/05 1,417 1,425
MBNA Credit Card Trust
Series 1996-J, Class A (A)
5.806%, 02/15/06 1,480 1,483
MBNA Credit Card Trust
Series 1998-A, Class A (A)
5.766%, 08/15/05 1,490 1,491
Metlife Capital Equipment Loan
Trust, Series 1997-A, Class A
6.850%, 05/20/08 1,800 1,850
Money Store Home Equity Loan
Trust, Series 1997-1, Class A3
6.680%, 08/15/12 2,135 2,171
Money Store Home Equity Loan
Trust, Series 1997-D, Class A7
6.485%, 12/15/38 1,735 1,764
Residential Asset Securization
Trust, Series 1997-A3,
Class A10 CMO
7.250%, 05/25/27 1,765 1,780
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $26,783) 27,195
--------
CORPORATE BONDS -- 26.8%
BANKING -- 6.7%
Banca Commerciale Italiana
8.250%, 07/15/07 973 1,090
Banco Santiago
7.000%, 07/18/07 2,000 1,840
BankBoston
7.000%, 09/15/07 1,540 1,613
Fleet Financial Group
6.875%, 01/15/28 1,490 1,537
Keycorp
7.500%, 06/15/06 1,685 1,807
NationsBank
5.750%, 03/15/01 3,120 3,104
--------
10,991
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
BOND FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
ENTERTAINMENT -- 1.3%
Time Warner
8.110%, 08/15/06 $1,915 $ 2,102
--------
FINANCIAL SERVICES -- 7.5%
Associates Corporation of North America
6.750%, 07/15/01 700 714
6.500%, 10/15/02 1,610 1,632
Lehman Brothers Holdings
7.375%, 05/15/04 1,250 1,306
Loew's
6.750%, 12/15/06 1,810 1,848
Mellon Capital II
Callable 01/15/07 at 104,
01/15/17 at 100
7.995%, 01/15/27 1,655 1,843
Morgan Stanley, Dean Witter,
Discover
5.890%, 03/20/00 3,125 3,121
Santander Finance
6.375%, 02/15/11 1,885 1,869
--------
12,333
--------
FOOD, BEVERAGE & TOBACCO -- 0.8%
Phillip Morris
6.150%, 03/15/00 1,390 1,390
--------
INDUSTRIAL -- 8.3%
Barrick Gold
7.500%, 05/01/07 1,785 1,908
Belo (A. H.)
6.875%, 06/01/02 1,132 1,160
Lasmo USA
6.750%, 12/15/00 1,656 1,654
Legrand S.A.
8.500%, 02/15/25 2,590 3,241
Skandinaviska Enskilda
6.875%, 02/15/09 2,982 3,124
Tele-Communications
7.250%, 08/01/05 1,385 1,463
Weyerhauser
6.950%, 08/01/17 1,124 1,153
--------
13,703
--------
MARINE TRANSPORTATION -- 1.1%
Royal Caribbean Cruises
7.500%, 10/15/27 1,665 1,740
--------
RETAIL -- 1.1%
Gap
6.900%, 09/15/07 1,685 1,765
--------
TOTAL CORPORATE BONDS
(Cost $42,821) 44,024
--------
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
REPURCHASE AGREEMENT -- 3.1%
State Street Bank & Trust
5.750%, dated 06/30/98, matures
07/01/98, repurchase price
$5,110,816 (collateralized by
U.S. Treasury Note, par value
$5,080,000, 6.250%, 07/31/98;
market value $5,215,530) 5,110 5,110
--------
TOTAL REPURCHASE AGREEMENT
(Cost $5,110) 5,110
--------
TOTAL INVESTMENTS -- 100.0%
(Cost $161,026) 164,427
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% 28
--------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 1 billion authorized
shares) based on 15,345,868
outstanding shares of beneficial interest 157,660
Portfolio Shares of Class A ($.001
par value -- 1 billion authorized
shares) based on 161,934
outstanding shares of beneficial interest 1,697
Undistributed Net Investment Income 4
Accumulated Net Realized Gain
on Investments 1,693
Net Unrealized Appreciation
on Investments 3,401
--------
TOTAL NET ASSETS -- 100.0% $164,455
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $10.60
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.61
========
(A) VARIABLE RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 1998.
CMO -- COLLATERALIZED MORTGAGE OBLIGATION
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
INTERMEDIATE MUNICIPAL BOND FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
MUNICIPAL BONDS -- 96.8%
COLORADO -- 1.1%
El Paso County, Colorado GO
5.200%, 12/01/02 $ 20 $ 21
--------
FLORIDA -- 2.7%
Jacksonville, Florida Electric Authority
Revenue Bond, Series 3-A
5.200%, 10/01/02 50 52
--------
GEORGIA -- 3.7%
Atlanta, Georgia Water & Sewer
Revenue Bond FGIC
4.500%, 01/01/04 20 20
De Kalb County, Georgia Health
Facilities GO
5.300%, 01/01/03 50 52
--------
72
--------
HAWAII -- 2.7%
Hawaii State GO, Series C E
5.200%, 06/01/04 50 52
--------
ILLINOIS -- 7.8%
Bloomingdale, Illinois GO
5.450%, 01/01/09 85 89
Illinois State Sales Tax Revenue Bond,
Series S
4.900%, 06/15/07 60 62
--------
151
--------
MARYLAND -- 2.7%
Maryland State Health & Higher
Education Facilities Authority Revenue
Bond for Johns Hopkins Project
5.125%, 07/01/03 50 52
--------
MASSACHUSETTS -- 2.7%
Massachusetts Bay Transportation
Authority Revenue Bond, Series A
5.300%, 03/01/05 50 53
--------
NEW JERSEY -- 6.3%
Burlington County, New Jersey
Community Bridge Systems
Revenue Bond, Callable
10/01/03 at 101 CG
5.050%, 10/01/04 50 52
Medford Township, New Jersey
Board of Education GO FGIC
5.950%, 02/01/03 65 70
--------
122
--------
PENNSYLVANIA -- 67.1%
Delaware County, Pennsylvania
Educational Authority Revenue
Bond Villanova University,
Series A, MBIA
4.625%, 12/01/07 100 101
Lehigh County, Pennsylvania
GO FGIC
5.125%, 11/15/08 110 114
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Luzerne County, Pennsylvania,
Series A, GO, Pre-Refunded
09/15/00 at 100 FGIC
5.850%, 09/15/02 $ 50 $ 52
Pennsylvania State Industrial
Development Authority
Revenue Bond AMBAC
5.000%, 07/01/04 100 104
Pennsylvania State Infrastructure
Authority Revenue Bond for
Pennvest Loan Pool Project MBIA
6.000%, 09/01/03 65 70
Pennsylvania State Turnpike
Commission Revenue Bond,
Series 1, Pre-Refunded
12/01/01 at 102 FGIC
7.150%, 12/01/11 50 56
Pennsylvania State Turnpike
Commission Revenue Bond,
Series F, Pre-Refunded
12/01/99 at 102 AMBAC
7.250%, 12/01/17 50 53
Philadelphia, Pennsylvania Airport
Parking Authority Revenue Bond
AMBAC
5.500%, 09/01/05 80 85
Pittsburgh, Pennsylvania School
District, Series A, GO, FGIC
4.850%, 09/01/03 100 103
Pittsburgh, Pennsylvania Water and
Sewer Authority Revenue Bond,
Series A FGIC
4.800%, 09/01/06 70 72
Reading, Pennsylvania Parking
Authority Revenue Bond MBIA
4.950%, 11/15/02 50 52
Scranton-Lackawana, Pennsylvania
Health and Welfare Authority
Revenue Bond for Mercy Health
Project, Series B MBIA
5.000%, 01/01/06 50 51
Seneca Valley, Pennsylvania GO
Bond, Series Aa FGIC
4.550%, 02/15/08 85 85
Tunkhannock, Pennsylvania GO
Bond, Area School District Callable
01/15/08 at 100 AMBAC
4.550%, 07/15/08 100 100
University of Pittsburgh, Pennsylvania
Revenue Bond for University
Capital Projects FGIC
5.050%, 06/01/10 90 93
Wallenpaupack, Pennsylvania Area
School District, Series C, GO,
Callable 09/01/00 at 100 FGIC
6.000%, 09/01/03 50 52
West View, Pennsylvania Municipal
Water Authority Revenue Bond FGIC
4.800%, 11/15/06 60 61
--------
1,304
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
INTERMEDIATE MUNICIPAL BOND FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $1,826) $ 1,879
--------
CASH EQUIVALENT -- 2.1%
SEI Institutional Tax Free Portfolio $41 41
--------
TOTAL CASH EQUIVALENT
(Cost $41) 41
--------
TOTAL INVESTMENTS -- 98.9%
(Cost $1,867) 1,920
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% 22
--------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 100 million authorized
shares) based on 104,509 outstanding
shares of beneficial interest 1,082
Portfolio Shares of Class A ($.001 par
value -- 100 million authorized shares)
based on 85,634 outstanding shares of
beneficial interest 890
Distributions in Excess of Net
Investment Income (1)
Accumulated Net Realized Loss
on Investments (80)
Net Unrealized Appreciation
on Investments 53
--------
TOTAL NET ASSETS -- 100.0% $ 1,944
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $10.21
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.21
========
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CG --- COUNTY GUARANTY
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
PENNSYLVANIA MUNICIPAL BOND FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
MUNICIPAL BONDS -- 95.6%
GEORGIA -- 0.5%
Hapeville, Georgia Industrial
Development Authority
Revenue Bond for Hapeville
Hotel Project (A) (B) (C)
4.000%, 11/01/15 $100 $ 100
--------
OHIO -- 2.6%
Cleveland, Ohio Bond
Anticipation Notes, Series B
4.500%, 10/01/99 500 503
--------
PENNSYLVANIA -- 92.5%
Abington, Pennsylvania School
District General Obligation
Bond FGIC
4.850%, 05/15/18 280 270
Allegheny County, Pennsylvania GO,
Series C-43, Callable 09/15/04
at 100 MBIA
5.875%, 09/15/10 60 64
Allegheny County, Pennsylvania
Hospital Development Authority
Revenue Bond for Mercy Hospital
of Pittsburgh AMBAC
6.450%, 04/01/01 200 212
Allegheny County, Pennsylvania
Hospital Development Authority
Revenue Bond for Montefiore
Hospital Association
5.800%, 10/01/03 110 115
Allegheny County, Pennsylvania
Hospital Development Authority
Revenue Bond for Presbyterian
Health Center, Series B,
Callable 11/01/02 at 102 MBIA
6.000%, 11/01/12 25 27
Allegheny County, Pennsylvania
Redevelopment Authority Revenue
Bond for Home Improvement
Loan Project, Series A,
Callable 02/01/04 at 102 FHA
5.700%, 02/01/07 10 10
Allegheny County, Pennsylvania
Sanitation Authority Sewer Revenue
Bond, Series B, Pre-Refunded
06/01/99 at 100 FGIC
7.450%, 12/01/09 130 134
Berks County, Pennsylvania Revenue
Bond for Reading Hospital &
Medical Center, Series B,
Callable 10/01/04 at 102 MBIA
5.600%, 10/01/06 65 70
Center City District, Pennsylvania
Business Improvement Assessment
Bond, Callable 12/01/07 at 100
AMBAC
5.600%, 12/01/08 60 65
Central Bucks, Pennsylvania School
District GO, Callable
02/01/01 at 100
6.600%, 02/01/03 175 186
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PENNSYLVANIA MUNICIPAL BOND FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Coatesville Pennsylvania City Water
Authority Revenue Bond
4.000%, 10/01/00 $250 $ 250
4.750%, 10/01/10 750 753
Crawford, Pennsylvania Central
School District GO FGIC
7.000%, 02/15/05 100 115
Dauphin County, Pennsylvania
Dauphin County General Authority
School District Pooled Financing
Program II AMBAC (B)
4.450%, 09/01/01 500 504
Delaware County, Pennsylvania GO
7.100%, 12/01/98 170 170
5.500%, 10/01/15 75 78
Delaware County, Pennsylvania
Revenue Bond for Villanova
University AMBAC
5.400%, 08/01/08 200 213
Dover Township, Pennsylvania
Sewer Authority Revenue Bond
6.250%, 05/01/12 15 16
Easton, Pennsylvania Area Sewer
Authority Revenue Bonds,
Series A FSA
4.200%, 12/01/01 575 577
5.000%, 12/01/14 500 500
Hampden Township, Pennsylvania
Sewer Authority Special Obligation
Bond, Callable 10/01/96 at 100
5.350%, 04/01/03 85 87
Keystone Oaks, Pennsylvania School
District GO FGIC
5.000%, 09/01/11 500 509
Lehigh County, Pennsylvania
General Purpose Authority
Revenue Bonds for Muhlenberg
College Project AMBAC
4.150%, 08/01/02 300 300
Lower Merion Township,
Pennsylvania GO, Callable
08/01/02 at 100
5.625%, 08/01/05 100 105
Lower Merion Township,
Pennsylvania School District
GO
4.750%, 05/15/01 500 510
Manheim, Pennsylvania Central
School District GO, Callable
05/15/04 at 100 FGIC
6.100%, 05/15/14 100 107
Millcreek Township, Pennsylvania
Sewer Authority Revenue Bond,
Callable 11/01/99 at 100 MBIA
6.000%, 11/01/06 150 154
Nazareth, Pennsylvania Area
School District General Obligation
Bond FGIC
4.850%, 08/15/12 550 548
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Neshaminy, Pennsylvania Neshaminy
School District GO FGIC
5.250%, 02/15/07 $500 $ 528
North Wales, Pennsylvania Water
Authority Revenue Bond
Pre-Refunded 11/01/04 at 100
6.750%, 11/01/10 100 114
Penn-Trafford, Pennsylvania
School District General
Obligation Bond AMBAC
4.350%, 05/01/06 300 299
Pennsylvania Housing Finance
Agency Single Family Mortgage-
55 Revenue Bond
4.700%, 10/01/01 100 102
Pennsylvania State Convention
Center Authority Revenue
Bond, Series A FGIC
6.700%, 09/01/16 75 88
Pennsylvania State GO
5.125%, 09/15/04 450 470
Pennsylvania State GO, Series 2
6.000%, 07/01/05 25 27
6.250%, 07/01/11 60 69
Pennsylvania State GO,
Third Series, Callable
09/01/03 at 101
5.000%, 09/01/12 350 352
Pennsylvania State Higher
Education Facilities Authority
Health Services Revenue Bond
for Allegheny/Delaware Valley,
Series A MBIA
5.500%, 11/15/08 400 429
Pennsylvania State Higher
Education Facilities Authority
Revenue Bond for Health
Services, Series A, Callable
01/01/04 at 102
6.000%, 01/01/10 100 108
Pennsylvania State Higher
Education Facilities Authority
Revenue Bond for Thomas
Jefferson University, Series A,
Callable 07/01/99 at 102
6.000%, 07/01/19 150 154
Pennsylvania State Higher
Education Facilities Authority
Revenue Bond for University of
Pennsylvania, Series B
5.250%, 01/01/07 500 526
5.700%, 01/01/11 150 159
5.850%, 09/01/13 100 108
Pennsylvania State Higher
Educational Facilities Authority
Revenue Drexel University MBIA
4.500%, 05/01/13 1,000 952
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PENNSYLVANIA MUNICIPAL BOND FUND (CONTINUED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Pennsylvania State Higher
Educational Facilities Authority
Revenue State Systems,
Series P AMBAC
5.000%, 12/15/16 $500 $ 497
Pennsylvania State Housing
Finance Agency Revenue
Bond, Series C
6.400%, 07/01/12 300 320
Pennsylvania State Industrial
Development Authority
Revenue Bond AMBAC
5.800%, 07/01/09 250 277
6.000%, 07/01/09 305 343
6.000%, 01/01/12 100 108
Pennsylvania State Industrial
Development Authority
Revenue Bond for Economic
Development AMBAC
6.000%, 07/01/08 600 671
Pennsylvania State Industrial
Development Authority Revenue
Bond, State Infrastructure
Investment Authority for
Pennvest Loan Pool MBIA
6.000%, 09/01/04 400 436
Pennsylvania State Turnpike
Commission Revenue Bond,
Series P
5.100%, 12/01/99 150 153
5.800%, 12/01/06 75 80
Pennsylvania State University
Revenue Bond, Callable
03/01/04 at 100
6.150%, 03/01/05 185 199
Philadelphia, Pennsylvania Industrial
Authority Revenue Bond
5.250%, 11/15/09 500 518
Philadelphia, Pennsylvania Parking
Authority Revenue Bond
5.750%, 09/01/07 400 438
Pittsburgh, Pennsylvania GO,
Series D, Callable 09/01/02
at 102 AMBAC
6.125%, 09/01/17 25 27
Scranton-Lackawana, Pennsylvania
Health and Welfare Authority
Revenue Bond Mercy Health
Project, Series B MBIA
5.000%, 01/01/06 250 257
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Scranton-Lackawana, Pennsylvania
Health and Welfare Authority
Revenue Bonds for Community
Medical Center Project
4.500%, 07/01/04 $800 $ 803
Scranton-Lackawanna, Pennsylvania
Health and Welfare Authority
Revenue Bond for University
of Scranton, Series A
6.150%, 03/01/03 150 161
Seneca Valley, Pennsylvania GO
5.850%, 02/15/15 105 115
Seneca Valley, School District,
Series A, Callable 07/01/08
at 100 GO FGIC
4.650%, 07/01/09 100 100
Sharon Pennsylvania Regional
Health System Revenue
Bond MBIA
4.875%, 12/01/10 760 765
University of Pittsburgh,
Pennsylvania Unrefunded
Balance of Series A
Revenue Bonds MBIA
6.125%, 06/01/21 40 43
Upper Merion PA School
District
5.000%, 07/15/12 540 543
York, Pennsylvania City School
District GO, Callable 03/01/03
at 100 FGIC
5.600%, 03/01/07 75 79
--------
18,067
--------
TOTAL MUNICIPAL BONDS
(Cost $18,164) 18,670
--------
CASH EQUIVALENT -- 3.2%
SEI Institutional Tax Free
Portfolio 627 627
--------
TOTAL CASH EQUIVALENT
(Cost $627) 627
--------
TOTAL INVESTMENTS -- 98.8%
(Cost $18,791) 19,297
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.2% 229
--------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
PENNSYLVANIA MUNICIPAL BOND FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 100 million authorized)
based on 1,248,862 outstanding
shares of beneficial interest $ 12,989
Portfolio Shares of Class A ($.001
par value -- 100 million authorized)
based on 567,088 outstanding
shares of beneficial interest 6,004
Distributions in Excess of Net
Investment Income (3)
Accumulated Net Realized Gain
on Investments 30
Net Unrealized Appreciation
on Investments 506
--------
TOTAL NET ASSETS -- 100.0% $ 19,526
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $10.75
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.75
========
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FHA -- FEDERAL HOUSING AGENCY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
(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 INSTRUMENT PRIOR TO MATURITY. THE MATURITY
DATE SHOWN IS THE LESSOR OF THE PUT OR DEMAND DATE OR
MATURITY DATE.
(C) SECURITY IS HELD IN CONNECTION WITH A LETTER OF CREDIT
OR STANDBY BOND PURCHASE AGREEMENT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER INSTITUTION.
NEW JERSEY MUNICIPAL BOND FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
MUNICIPAL BONDS -- 97.1%
NEW JERSEY -- 97.1%
Bayonne, New Jersey GO FGIC
5.900%, 05/01/08 $150 $ 162
Burlington County, New Jersey GO
5.200%, 10/01/05 80 83
Cherry Hill Township, New Jersey GO
5.900%, 06/01/05 50 54
Flemington-Raritan, New Jersey
Regional School District GO
5.700%, 05/01/06 50 54
Manalapan Township, New Jersey
Fire District Number 1 GO
5.300%, 12/15/99 80 82
Marlboro Township, New Jersey
Board of Education GO FGIC
5.500%, 07/15/09 40 42
Middlesex County New Jersey
Revenue Bond FGIC
5.125%, 12/01/16 70 70
Monmouth County, New Jersey
Improvement Authority
Revenue Bond CG
6.625%, 12/01/05 40 42
New Jersey Health Care Facilities
Finance Authority Revenue Bond
for Bridgeton Hospital Association,
Series B
6.000%, 07/01/13 50 55
New Jersey Health Care Facilities
Finance Authority Revenue Bond
for Burlington County Memorial
Hospital Project
6.000%, 07/01/12 50 55
New Jersey State Economic
Development Authority Revenue
Bond for Peddie School Project,
Series A
5.400%, 02/01/06 50 53
New Jersey State Economic
Development Authority Revenue
Bond for Rutgers State University-
Civic Square AMBAC
6.125%, 07/01/24 55 59
New Jersey State Educational
Facilities Authority Revenue Bond
for Princeton University Project,
Series A
5.500%, 07/01/04 100 106
New Jersey State Educational
Facilities Authority Revenue Bond
for University of Medicine and
Dentistry, Series B AMBAC
5.250%, 12/01/13 60 62
New Jersey State General Obligation
Bond Callable 03/01/08 at 100
4.750%, 03/01/15 110 107
New Jersey State Transportation
Authority Revenue Bond MBIA
5.000%, 06/15/15 100 100
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
STATEMENT OF NET ASSETS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
NEW JERSEY MUNICIPAL BOND FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
New York & New Jersey States Port
Authority Revenue Bond,
Series 81
5.700%, 08/01/07 $50 $ 53
North Bergen Township,
New Jersey GO AMBAC
5.000%, 08/15/09 75 78
North Brunswick Township,
New Jersey Board of
Education GO
6.300%, 02/01/12 150 167
North Brunswick Township,
New Jersey Board of
Education GO FGIC
5.000%, 02/01/12 100 102
North Brunswick Township,
New Jersey GO
6.125%, 05/15/04 24 26
North New Jersey District Water
Supply Revenue Bond MBIA
5.050%, 11/15/11 90 93
Ocean County, New Jersey GO
5.650%, 07/01/03 75 80
Ocean County, New Jersey
Utilities Authority Wastewater
Revenue Bond
5.125%, 01/01/11 75 77
Secaucus, New Jersey Utilities
Authority Sewer Revenue
Bond, Series A
6.100%, 12/01/10 60 67
South Brunswick Township,
New Jersey GO
5.950%, 08/01/14 100 108
South Monmouth, New Jersey
Regional Sewer Authority
Revenue Bond MBIA
5.550%, 01/15/06 50 54
West Windsor Township,
New Jersey Parking Authority
Revenue Bond
6.100%, 12/01/12 50 55
--------
TOTAL MUNICIPAL BONDS
(Cost $2,041) 2,146
--------
CASH EQUIVALENT -- 1.8%
SEI Institutional Tax Free Portfolio 40 40
--------
TOTAL CASH EQUIVALENT
(Cost $40) 40
--------
TOTAL INVESTMENTS -- 98.9%
(Cost $2,081) 2,186
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% 25
--------
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 100 million authorized shares)
based on 131,810 outstanding shares of
beneficial interest $ 1,286
Portfolio Shares of Class A ($.001
par value -- 100 million authorized
shares) based on 79,471 outstanding
shares of beneficial interest 823
Accumulated Net Realized Loss
on Investments (3)
Net Unrealized Appreciation
on Investments 105
--------
TOTAL NET ASSETS -- 100.0% $ 2,211
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS Y $10.47
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.46
========
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CG -- COUNTY GUARANTY
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
GO --- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
TREASURY RESERVE
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 30.7%
U.S. Treasury Bills+
4.250%, 07/02/98 $50,000 $ 49,994
4.840%, 07/23/98 10,000 9,968
5.335%, 08/20/98 10,000 9,926
U.S. Treasury Notes
5.250%, 07/31/98 15,000 14,995
5.875%, 08/15/98 10,000 10,001
4.750%, 08/31/98 5,000 4,993
6.125%, 08/31/98 10,000 10,008
4.750%, 09/30/98 5,000 4,989
6.000%, 09/30/98 10,000 10,009
5.875%, 10/31/98 10,000 10,007
5.500%, 11/15/98 15,000 14,987
5.625%, 11/30/98 15,000 14,993
5.125%, 12/31/98 10,000 9,989
5.875%, 01/31/99 15,000 15,034
U.S. Treasury STRIPS+
5.735%, 08/15/98 20,000 19,864
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $209,757) 209,757
---------
REPURCHASE AGREEMENTS -- 69.4%
First National Bank of Chicago
5.750%, dated 06/30/98, matures
07/01/98, repurchase price
$169,427,057 (collateralized by
various U.S. Treasury Notes,
ranging in par value $14,000,000-
$50,000,000, 5.875%-7.875%,
09/30/99-11/15/05; total
market value $173,220,389) 169,400 169,400
Goldman Sachs
5.650%, dated 06/30/98, matures
07/01/98, repurchase price
$33,005,179 (collateralized by
various U.S. Treasury Notes,
ranging in par value $6,655,000-
$25,860,000, 6.375%,
3/31/01; total market
value $33,756,882) 33,000 33,000
Hong Kong Shanghai Bank
5.400% dated 06/30/98, matures
07/01/98, repurchase price
$9,287,393 (collateralized by
U.S. Treasury Note, par value
$9,275,000, 5.875%,08/31/99;
market value $9,494,777) 9,286 9,286
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Hong Kong Shanghai Bank
5.650%, dated 06/30/98, matures
07/01/98, repurchase price
$16,002,511 (collateralized by
U.S. Treasury Note, par value
$15,865,000, 6.500%, 05/31/01;
market value $16,375,899) $16,000 $ 16,000
Morgan Stanley
5.650%, dated 06/30/98, matures
07/01/98, repurchase price
$32,805,148 (collateralized by U.S.
Treasury Note, par value $33,000,000,
5.875%, 11/30/01; market value
$33,540,476) 32,800 32,800
Societe Generale
5.850%, dated 06/30/98, matures
07/01/98, repurchase price
$169,427,527 (collateralized by
various U.S. Treasury Notes,
ranging in par value $15,690,000-
$28,575,000, 3.625%-7.750%,
12/31/98-02/15/05; total
market value $173,486,238) 169,400 169,400
State Street Bank & Trust
5.750%, dated 06/30/98,
matures 07/01/98, repurchase
price $27,804,440 (collateralized
by U.S. Treasury Note, par value
$27,800,000, 6.250%, 03/31/99;
market value $28,392,720) 27,800 27,800
Swiss Bank
5.850%, dated 06/30/98, matures
07/01/98, repurchase price $16,002,600
(collateralized by U.S. Treasury
Note, par value $16,000,000,
5.625%, 02/28/01; market value
$16,355,870) 16,000 16,000
---------
TOTAL REPURCHASE AGREEMENTS
(Cost $473,686) 473,686
---------
TOTAL INVESTMENTS -- 100.1%
(Cost $683,443) 683,443
---------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) (916)
---------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
TREASURY RESERVE (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 1,250 million
authorized shares) based on
659,952,460 outstanding shares
of beneficial interest $ 659,952
Portfolio Shares of Class C ($.001
par value -- 1,250 million authorized
shares) based on 22,573,709
outstanding shares of
beneficial interest 22,574
Accumulated Net Realized Gain
on Investments 1
---------
TOTAL NET ASSETS -- 100.0% $ 682,527
=========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- CLASS Y $1.00
=========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE -- CLASS C $1.00
=========
+ EFFECTIVE YIELD
STRIPS -- SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
CASH RESERVE
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
COMMERCIAL PAPER -- 43.3%
AUTOMOTIVE -- 2.3%
Ford
5.554%, 07/08/98 $20,000 $ 19,979
---------
BANKING -- 11.6%
Bank One
5.565%, 07/15/98 15,000 14,968
5.582%, 08/21/98 7,582 7,523
Bank One Funding
5.583%, 08/19/98 20,000 19,850
5.576%, 09/09/98 10,000 9,893
Barclay's Bank
5.645%, 03/02/99 5,000 4,998
CDC
5.554%, 08/21/98 10,000 9,922
First Chicago
5.520%, 08/28/98 20,000 19,822
National Australia Bank
5.553%, 07/07/98 10,900 10,890
5.558%, 08/14/98 5,000 4,966
---------
102,832
---------
CHEMICALS -- 3.3%
Dupont
5.520%, 08/03/98 10,000 9,948
5.553%, 07/28/98 10,000 9,959
5.548%, 08/14/98 10,000 9,933
---------
29,840
---------
ELECTRICAL SERVICES -- 0.8%
Teco Finance
5.562%, 08/18/98 7,459 7,404
---------
FINANCIAL SERVICES -- 19.9%
AIG Funding
5.806%, 07/31/98 12,100 12,044
Ameritech
5.531%, 07/02/98 5,000 4,999
Amex
5.570%, 07/28/98 10,000 9,959
Ciesco
5.580%, 09/18/98 25,000 24,698
CIT Group
5.576%, 07/22/98 15,000 14,952
Eureka
5.554%, 07/14/98 10,000 9,980
5.582%, 07/22/98 10,000 9,968
General Electric
5.564%, 07/08/98 10,000 9,989
5.597%, 07/29/98 15,000 14,936
Merrill Lynch
5.597%, 09/21/98 20,000 19,748
5.581%, 08/05/98 10,000 9,947
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
CASH RESERVE (CONTINUED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
NCAT
5.569%, 07/08/98 $15,000 $ 14,984
Norwest Financial
5.547%, 07/09/98 20,000 19,975
---------
176,179
----------
FOOD, BEVERAGE & TOBACCO -- 2.1%
Campbell Soup
5.629%, 10/05/98 18,550 18,283
---------
INSURANCE -- 3.3%
Metlife
5.539%, 07/28/98 9,000 8,963
Prudential
5.583%, 08/19/98 20,000 19,850
---------
28,813
---------
TOTAL COMMERCIAL PAPER
(Cost $383,330) 383,330
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.0%
FFCB
5.520%, 08/11/98 5,250 5,250
FHLB
5.588%, 10/23/98 4,200 4,200
6.000%, 01/01/99 3,437 3,439
5.605%, 01/29/99 15,000 15,000
FHLM
6.000%, 02/01/99 2,119 2,120
FNMA
5.596%, 10/20/98 5,000 4,999
---------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $35,008) 35,008
---------
CORPORATE OBLIGATIONS -- 15.4%
BANKING -- 0.2%
Morgan Guaranty (A)
5.850%, 08/21/98 2,000 2,000
---------
FINANCIAL SERVICES -- 12.4%
Abbey National Treasury Services
5.590%, 02/03/99 15,000 14,996
Beta Finance Private Placement
5.690%, 03/05/99 20,000 20,000
Credit Suisse First Boston (A)
5.670%, 07/22/98 10,000 10,000
Ford Motor Credit
5.625%, 12/15/98 1,000 1,000
Morgan Stanley (A)
5.788%, 03/13/01 20,000 20,000
Morgan Stanley, Dean Witter,
Discover (A)
5.670%, 01/15/99 15,000 15,000
Paccar Financial (A)
5.518%, 03/26/99 25,000 24,987
Toyota Motor
6.375%, 08/05/98 4,000 4,002
---------
109,985
---------
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
INDUSTRIAL -- 2.8%
Exxon Capital
8.000%, 10/02/98 $ 4,249 $ 4,270
Ford Motor Credit
5.700%, 12/23/98 15,000 14,999
Merck
5.250%, 12/22/98 5,000 4,984
---------
24,253
---------
TOTAL CORPORATE OBLIGATIONS
(Cost $136,238) 136,238
---------
TIME DEPOSITS -- 3.4%
Bank of 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 15,000 15,000
Republic Bank of New York
6.000%, 07/01/98 5,000 5,000
---------
TOTAL TIME DEPOSITS
(Cost $30,000) 30,000
---------
MASTER NOTES -- 3.8%
Associates Corporation of
North America (A)
5.497%, 07/01/98 23,469 23,470
General Electric Capital (A)
5.528%, 07/01/98 10,000 10,000
---------
TOTAL MASTER NOTES
(Cost $33,470) 33,470
---------
CERTIFICATES OF DEPOSIT -- 8.4%
Deutche Bank
5.840%, 10/14/98 5,000 4,999
5.940%, 10/22/98 9,250 9,249
Morgan Stanley Bank
5.550%, 02/04/99 10,000 9,997
National Westminster Bank
5.830%, 10/14/98 5,000 4,999
NationsBank
5.550%, 02/11/99 12,850 12,846
Societe Generale
5.800%, 04/01/99 5,000 4,999
Swiss Bank
5.825%, 10/02/98 10,000 9,999
5.880%, 11/20/98 5,000 4,999
5.650%, 03/05/99 12,000 11,996
---------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $74,083) 74,083
---------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
CASH RESERVE (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
ASSET-BACKED SECURITIES -- 3.0%
Centauri Credit USA
5.690%, 03/16/99 $10,000 $ 10,000
5.710%, 03/30/99 15,000 15,000
Key Auto Finance Trust,
Series 1997-2, Class A1
5.835%, 01/05/99 1,153 1,153
---------
TOTAL ASSET-BACKED SECURITIES
(Cost $26,153) 26,153
---------
INSURANCE FUNDING AGREEMENTS -- 7.1%
Allstate (A)
5.696%, 07/01/98 18,000 18,000
Combined Insurance of America
Insurance Funding Agreement (A)
5.768%, 07/01/98 20,000 20,000
Pacific Mutual Insurance (A)
5.686%, 07/01/98 25,000 25,000
---------
TOTAL INSURANCE FUNDING AGREEMENTS
(Cost $63,000) 63,000
---------
REPURCHASE AGREEMENTS -- 11.4%
Hong Kong Shanghai Bank
5.400%, dated 06/30/98,
matures 07/01/98, repurchase
price $21,003,150 (collateralized
by various U.S. Treasury Notes,
ranging in par value $6,825,000-
$13,405,000, 5.875%-7.500%,
08/31/99-02/15/05; total
market value $21,488,216) 21,000 21,000
Hong Kong Shanghai Bank
5.650%, dated 06/30/98, matures
07/01/98, repurchase price
$40,006,278 (collateralized by
various U.S. Treasury Notes,
ranging in par value $9,400,000-
$27,350,300, 6.375%-7.875%,
08/15/02-11/15/04; total
market value $40,993,930) 40,000 40,000
Nations Bank
6.000%, dated 06/30/98, matures
07/01/98, repurchase price
$40,006,667 (collateralized by
FNMA, par value $41,495,000,
6.000%, 05/01/13; market
value $41,015,214) 40,000 40,000
---------
TOTAL REPURCHASE AGREEMENTS
(Cost $101,000) 101,000
---------
TOTAL INVESTMENTS -- 99.8%
(Cost $882,282) 882,282
---------
OTHER ASSETS AND LIABILITIES, NET -- 0.2% 2,270
---------
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 1 billion authorized
shares) based on 804,434,981
outstanding shares of beneficial
interest $ 804,189
Portfolio Shares of Class C ($.001
par value -- 1 billion authorized
shares) based on 80,166,493
outstanding shares of beneficial interest 80,142
Portfolio Shares of Class B ($.001
par value -- 1 billion authorized shares)
based on 97,067 outstanding shares
of beneficial interest 97
Undistributed Net Investment Income 283
Accumulated Net Realized Loss
on Investments (159)
---------
TOTAL NET ASSETS -- 100.0% $ 884,552
=========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS Y $1.00
=========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS C $1.00
=========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS B $1.00
=========
FFCB -- FEDERAL FARM CREDIT BANK
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA --- FEDERAL NATIONAL MORTGAGE ASSOCIATION
(A) VARIABLE RATE SECURITIES -- THE RATE REFLECTED
ON THE STATEMENT OF NET ASSETS IS THE RATE IN EFFECT
ON JUNE 30, 1998.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
TAX-FREE RESERVE
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
MUNICIPAL BONDS -- 99.3%
ALABAMA -- 2.2%
Montgomery, Alabama TECP
3.500%, 07/13/98 $1,000 $ 1,000
North Alabama Environmental
Improvement Authority Revenue
Bond Reynold Metals
Project (A) (B)
4.000%, 07/01/98 600 600
Stevenson, Alabama Industrial
Development Authority
Environmental Improvement
Revenue Bond Mead
Corporation Project,
Series 1986A (A)(B)
3.950%, 07/01/98 1,400 1,400
---------
3,000
---------
ALASKA -- 2.8%
City of Valdez, Alaska TECP
3.650%, 07/07/98 1,900 1,900
3.750%, 08/14/98 2,000 2,000
---------
3,900
---------
ARIZONA -- 0.5%
Arizona State TRAN Series B
7.400%, 07/01/98 650 650
---------
CALIFORNIA -- 0.2%
Santa Clara, California Electric
Revenue Bond, Series A (A) (B)
3.150%, 07/01/98 340 340
---------
FLORIDA -- 2.4%
Broward County, Florida Housing
Financial Authority Multifamily
Housing Revenue Bond Sanctuary
Apartments Project (A) (B)
3.600%, 07/02/98 1,400 1,400
Sunshine State, Florida
TECP AMBAC
3.600%, 09/11/98 2,000 2,000
---------
3,400
---------
GEORGIA -- 1.4%
Meag Power Project TECP (C)
3.600%, 07/08/98 2,000 2,000
---------
HAWAII -- 0.7%
Honolulu Hawaii City and
County GO Bond Pre-Refunded
at 101.50 (D)
6.900%, 10/01/98 1,000 1,022
---------
ILLINOIS -- 9.6%
Chicago, Illinois O'Hare
International Airport Revenue Bond
Industrial Lien, Series C (A) (B)
3.550%, 07/01/98 1,500 1,500
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Illinois Development Finance
Authority Revenue Bond Illinois
Power Company Project,
Series B E23A (A)(B)
3.500%, 07/01/98 $1,400 $ 1,400
Illinois State Pollution Control
Authority Revenue Bond Staley
Manufacturing Company
Project (A) (B)
3.450%, 07/01/98 1,800 1,800
Illinois State Pollution Control
Authority Revenue Bond Amoco
Oil Company Project (A) (B)
3.800%, 07/01/98 4,500 4,500
Illinois State Toll Highway Authority,
Series B MBIA (A) (B)
3.400%, 07/01/98 2,000 2,000
Schaumburg, Illinois Multifamily
Housing Revenue Bond
(A) (B) (C)
3.550%, 07/02/98 1,000 1,000
St. Charles, Illinois Revenue Bond
(A) (B) (C)
3.750%, 07/01/98 1,300 1,300
---------
13,500
---------
INDIANA -- 4.3%
Hammond, Indiana Pollution
Control Revenue Bond Amoco
Oil Company Project (A) (B)
3.800%, 07/01/98 1,000 1,000
Sullivan, Indiana TECP Series L1
3.550%, 07/09/98 1,000 1,000
Sullivan Hoosiers, Indiana TECP
3.600%, 07/06/98 1,000 1,000
3.550%, 07/14/98 2,050 2,050
3.600%, 09/03/98 1,050 1,050
---------
6,100
---------
KANSAS -- 5.9%
Burlington County, Kansas TECP
3.500%, 07/15/98 1,200 1,200
3.550%, 08/11/98 2,000 2,000
3.550%, 08/14/98 1,700 1,700
Johnson County Kansas Water
District Number 001 Revenue Bond
Prerefunded at 100 (D)
10.500%, 12/01/98 2,000 2,055
Kansas City, Kansas Highway
Roads Revenue Bonds (B)
9.000%, 07/01/98 1,300 1,300
---------
8,255
---------
KENTUCKY -- 3.8%
Mason County, Kentucky Pollution
Control Revenue Bond East
Kentucky Power-National
Rural Project Series B-1 (A) (B)
3.650%, 07/01/98 3,320 3,320
Pendleton County, Kentucky TECP
3.650%, 09/08/98 2,000 2,000
---------
5,320
---------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
TAX-FREE RESERVE (CONTINUED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
LOUISIANA -- 7.6%
De Soto Parish, Louisiana Central
Louisiana Electric Company
Pollution Control Revenue
Bond (A) (B)
3.350%, 07/01/98 $ 700 $ 700
East Baton Rouge, Louisiana
Pollution Control Revenue
Bond (A) (B)
4.000%, 07/01/98 500 500
Jefferson Parish Hospital Service
District Number 001
Revenue Bond (A) (B)
3.600%, 07/01/98 3,000 3,000
Louisiana State Public Facilities
Authority Revenue Bond
Kenner Hotel Project (A) (B) (C)
4.000%, 07/01/98 1,800 1,800
Saint Charles Parish, Louisiana
Pollution Control Revenue Bond
Shell Oil Company Project,
Series B (A) (B)
3.750%, 07/01/98 2,750 2,750
South Louisiana Port Common
Marine Terminal Revenue
Bond Occidental Petroleum
Project (A) (B)
3.500%, 07/01/98 2,000 2,000
---------
10,750
---------
MICHIGAN -- 1.6%
Cornell Township, Michigan
Environment Improvement
Authority Revenue Bond
Escanaba Paper
Company Project (A) (B) (C)
3.900%, 07/01/98 895 895
Delta County, Michigan
Environmental Improvement
Authority Revenue Bond, Mead
Escambia Paper, Series C (A) (B)
4.000%, 07/01/98 700 700
Michigan State Revenue Bond
Consumers Power Project (A) (B)
3.800%, 07/01/98 700 700
---------
2,295
---------
MINNESOTA -- 5.0%
Minnesota State GO
6.600%, 08/01/99 3,150 3,157
Rochester, Minnesota TECP
3.500%, 07/16/98 1,500 1,500
3.900%, 07/16/98 900 900
Western Minnesota Munipal
Power Agency Revenue Bond
Prerefunded at 100 (D)
10.250%, 01/01/99 1,450 1,498
---------
7,055
---------
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
MISSISSIPPI -- 2.2%
Claiborne County, Mississippi TECP
3.600%, 05/08/98 $1,575 $ 1,575
3.600%, 07/17/98 1,500 1,500
---------
3,075
---------
MISSOURI -- 4.6%
Missouri State Development
Finance Board Infrastructure Facility
Revenue Bond Science City Union
Station Project (A) (B) (C)
3.800%, 07/01/98 300 300
Missouri State Health and
Educational Facilities Authority
Washington University
Series A (A) (B) (C)
3.850%, 07/01/98 4,200 4,200
Missouri State Health and
Educational Facilitities
Authority GO
4.500%, 09/14/98 2,000 2,002
---------
6,502
---------
MONTANA -- 0.4%
Forsyth, Montana Pollution Control
Revenue Bond Pacificorp Project,
Series 1988 (A) (B) (C)
3.800%, 07/01/98 600 600
---------
NEVADA -- 0.7%
Las Vegas, Nevada GO,
Series A FGIC (C)
4.750%, 11/01/98 1,000 1,003
---------
NEW MEXICO -- 0.6%
Albuquerque, New Mexico
Gross Receipts Revenue
Bond (A) (B) (C)
3.500%, 07/01/98 800 800
---------
NEW YORK -- 5.5%
New York City GO,
Series B-4 (A) (B) (C)
4.100%, 07/01/98 1,690 1,690
New York City, New York GO,
Series A-10 (A) (B)
4.100%, 07/01/98 500 500
New York, New York
Municipals Waters TECP (C)
3.600%, 07/15/98 3,500 3,500
New York State Energy Research
and Development Authority
Pollution Control Revenue
Bond Niagara Mohawk Power
Project, Series A (A) (B)
3.750%, 07/01/98 1,000 1,000
New York, New York GO (A) (B) (C)
4.100%, 07/01/98 1,000 1,000
---------
7,690
---------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
TAX-FREE RESERVE (CONTINUED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
NORTH CAROLINA -- 2.8%
Raleigh Durham Airport
Authority Revenue Bond,
American Airlines
Project (A) (B) (C)
3.850%, 11/01/05 $ 500 $ 500
North Carolina Muni Power
Catawba Project TECP
3.700%, 08/13/98 1,000 1,000
North Carolina Municipal
Power TECP
3.650%, 09/09/98 Series A 1,000 1,000
3.650%, 09/09/98 Series B 1,000 1,000
Wake County, North Carolina
Revenue Bond Carolina Power
& Light Company Project (A) (B)
3.500%, 07/01/98 400 400
---------
3,900
---------
OHIO -- 0.2%
Ohio State Air Quality Revenue
Bond, Series B (A) (B)
3.800%, 07/01/98 300 300
---------
OREGON -- 0.6%
Port of Portland, Oregon Pollution
Control Revenue Bond
Reynold Metals Project
(A) (B) (C)
4.000%, 07/01/98 200 200
Port of St. Helens Portland,
Oregon Pollution Control
Revenue Bond (A) (B)
4.150%, 07/01/98 600 600
---------
800
---------
PENNSYLVANIA -- 10.4%
Allegheny County, Pennsylvania
Hospital Development Revenue Bond
Presbyterian University Hospital
Project, Series B2 (A) (B)
3.600%, 07/01/98 380 380
Allegheny County, Pennsylvania
Hospital Development Revenue Bond
Presbyterian University Hospital
Project, Series B1 (A) (B)
3.600%, 07/02/98 600 600
Allegheny County, Pennsylvania
Hospital Development Revenue Bond
Presbyterian University Hospital
Project, Series B3 (A) (B)
3.600%, 07/02/98 3,175 3,175
Beaver County, Pennsylvania
Industrial Development Authority
Revenue Bond Duquesne Light
Company Project, Series B (A) (B)
3.500%, 07/01/98 100 100
Beaver County, Pennsylvania TECP
3.650%, 08/07/98 2,400 2,400
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Lehigh County, Pennsylvania
Industrial Development Authority
Pollution Control Revenue
Bond (A) (B)
3.700%, 08/01/98 $ 200 $ 200
Montgomery County,
Pennsylvania TECP
3.700%, 08/11/98 1,500 1,500
Pennsylvania State Higher
Education Revenue Bond
4.800%, 09/01/98 455 456
Pennsylvania State Higher Education
Authority Revenue Bond, Carnegie
Mellon University Project,
Series D (A) (B)
4.000%, 07/01/98 1,100 1,100
Pennsylvania State Higher Education
Authority Revenue Bond Carnegie
Mellon University Project,
Series C (A) (B)
4.000%, 07/01/98 2,200 2,200
Pennsylvania Revenue Bond State
University Project Notes, Series A
4.500%, 03/30/99 1,000 1,007
York County, Pennsylvania Solid
Waste and Refuse Revenue
Bonds FGIC (C)
4.750%, 12/01/98 1,500 1,506
---------
14,624
---------
SOUTH CAROLINA -- 0.6%
North Charleston, South Carolina
GO Prerefunded @ 102 (B) (D)
7.500%, 08/01/98 500 511
York County, South Carolina
Pollution Control Revenue
Bond Electric Project (A) (B)
3.650%, 07/01/98 400 400
---------
911
---------
TENNESSEE -- 0.4%
Sullivan County, Tennessee Industrial
Development Authority Pollution
Control Revenue Bond Mead Corporation
Project (A) (B)
3.950%, 07/01/98 600 600
---------
TEXAS -- 12.8%
Austin, Texas Utility Systems
Revenue Bond, Series A
Prerefunded @ 102 (D)
7.800%, 11/15/98 1,000 1,036
Camp County, Texas Industrial
Development Corporation
Pollution Control Revenue Bond
Texas Oil and Gas Project (A) (B)
3.700%, 07/01/98 500 500
Denton County, Texas TAN
5.500%, 09/01/98 930 932
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
TAX-FREE RESERVE (CONTINUED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Grapevine, Texas Industrial
Development Authority Revenue
Bond American Airlines Project,
Series B4 (A) (B)
4.000%, 07/01/98 $ 500 $ 500
Grapevine, Texas Industrial
Development Authority Revenue
Bond American Airlines Project,
Series B3 (A) (B) (C)
4.000%, 07/01/98 1,400 1,400
Grapevine, Texas Industrial
Development Corporation Revenue
Bond American Airlines Project,
Series A1 (A) (B) (C)
4.000%, 07/01/98 500 500
Hunt County, Texas Industrial
Development Authority Revenue
Bond, Trico Industries Incorporated
Project (A) (B) (C)
3.400%, 07/07/98 2,100 2,100
Nueces County, Texas Health
Facilities Authority Revenue Bond
Driscoll Childrens Foundation (A) (B)
3.650%, 07/01/98 2,425 2,425
Texas State Higher Education
Authority Revenue Bond
University and College Improvement
Project, Series B FGIC (A) (B)
3.600%, 12/01/25 1,895 1,895
Texas State Southwest Higher
Education Authority Revenue Bond
Southern Methodist University Project
(A) (B) (C)
3.850%, 07/01/98 300 300
Texas State TRAN, Series A
4.750%, 08/31/98 6,500 6,511
---------
18,099
---------
UTAH -- 1.1%
Intermountain Power Agency
Revenue Bond, Power Supply,
Series E (A) (B)
3.450%, 09/15/98 1,500 1,500
---------
VERMONT -- 0.9%
Vermont State Student Loan
Assistance Corporation Revenue
Bond (A) (B)
3.700%, 08/01/98 1,235 1,235
---------
VIRGINIA -- 2.9%
Chesapeake VA Hospital Authority
First Mortgage Revenue Bond
Chesapeake General Hospital
Pre-Refunded @ 102 (D)
7.625%, 07/01/98 1,000 1,020
Chesapeake Virginia Industrial
Development TECP
3.700%, 08/12/98 1,000 1,000
Penn Ports, Virginia TECP
3.700%, 08/07/98 1,500 1,500
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Virginia State Peninsula Port
Authority Revenue Bond
Dominion Terminal Project,
Series 1987C (A) (B)
4.000%, 07/01/98 $ 500 $ 500
---------
4,020
---------
WASHINGTON -- 1.6%
Port Kalama, Washington Revenue
Bond Conagra Project (A) (B)
3.500%, 07/01/98 1,750 1,750
Washington State Motor Vehicle
Fuel Tax GO, Series B
6.000%, 01/01/99 500 505
---------
2,255
---------
WEST VIRGINIA -- 0.1%
Putnam County, West Virginia
Industrial Development Authority
Revenue Bond, FMC Corporation
Project (A) (B)
3.750%, 08/01/98 200 200
---------
WISCONSIN -- 1.4%
Lac Du Flambeau, Wisconsin Lake
Superior Chippewa Indians
Special Obligation Revenue Bond,
Simpson Electric Project (A) (B)
3.500%, 07/01/98 400 400
Wisconsin State Health Facilities
Authority Revenue Bond Franciscan
Health Care Project Series A-2
3.500%, 07/01/98 600 600
Wisconsin State GO, Series A
5.750%, 05/01/99 1,000 1,017
---------
2,017
---------
WYOMING -- 1.5%
Lincoln County, Wyoming Pollution
Control Revenue Bond Exxon
Project, Series D (A) (B)
4.000%, 07/01/98 200 200
Platte County, Wyoming Pollution
Control Revenue Bond,
Series A (A) (B)
3.800%, 07/01/98 1,500 1,500
Sublette County, Wyoming Revenue
Bond, Exxon Project,
Series 84 (A) (B)
3.800%, 07/01/98 400 400
---------
2,100
---------
TOTAL MUNICIPAL BONDS
(Cost $139,818) 139,818
---------
TOTAL INVESTMENTS -- 99.3%
(Cost $139,818) 139,818
---------
OTHER ASSETS AND LIABILITIES, NET -- 0.7% 1,055
---------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
STATEMENT OF NET ASSETS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
TAX-FREE RESERVE (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class Y ($.001
par value -- 250 million authorized)
based on 125,017,318 outstanding
shares of beneficial interest $ 125,018
Portfolio Shares of Class C ($.001
par value -- 250 million authorized)
based on 15,957,080 outstanding
shares of beneficial interest 15,957
Distributions in Excess of Net
Investment Income (25)
Accumulated Net Realized Loss
on Investments (77)
---------
TOTAL NET ASSETS -- 100.0% $ 140,873
=========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS Y $1.00
=========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS C $1.00
=========
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
TAN -- TAX ANTICIPATION NOTE
TECP -- TAX EXEMPT COMMERCIAL PAPER
TRAN -- TAX AND REVENUE ANTICIPATION NOTE
(A) VARIABLE RATE SECURITIES -- THE RATE REFLECTED ON
THE STATEMENT OF THE 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 LESSOR OF THE PUT DEMAND
OR MATURITY DATE.
(C) SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF
CREDIT ISSUED BY A MAJOR COMMERCIAL BANK OR FINANCIAL
INSTITUTION.
(D) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS
THE PRE-REFUNDED DATE.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41
<PAGE>
STATEMENT OF OPERATIONS (000) COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
For the year ended June 30, 1998
<TABLE>
<CAPTION>
-------------- -------------- --------------
EQUITY CORE EQUITY GROWTH
INDEX FUND FUND3 EQUITY FUND
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 4,462 $ 6,255 $ 1,115
Interest 44 349 347
Less: foreign taxes withheld -- -- --
-------- ------- -------
Total investment income 4,506 6,604 1,462
-------- ------- -------
EXPENSES:
Investment advisory fees 1,139 4,271 1,344
Less: waiver of investment advisory fees (686) -- --
Administrative fees 712 1,442 448
Less: waiver of administrative fees (255) (421) (162)
Transfer agent fees & expenses 78 180 54
Custodian fees -- 1 --
Professional fees 23 64 17
Registration & filing fees 18 72 16
12b-1 fees-- individual shares 2 49 15
Printing fees 35 79 25
Organizational costs -- -- --
Miscellaneous 26 77 18
-------- ------- -------
Total expenses 1,092 5,814 1,775
-------- ------- -------
NET INVESTMENT INCOME (LOSS) 3,414 790 (313)
-------- ------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FORWARD FOREIGN CURRENCY
CONTRACTS AND FOREIGN CURRENCY:
Net realized gain on investments 8,187 99,738 42,462
Net realized (loss) on forward foreign currency contracts and
foreign currency transactions -- -- --
Net unrealized appreciation on forward foreign currency contracts and
translation of assets and liabilities in foreign currencies -- -- --
Net change in unrealized appreciation (depreciation) on investments 61,049 10,477 17,462
-------- ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 72,650 $111,005 $59,611
======== ======== =======
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE - JUNE 30, 1998:
CLASS Y
1 Net asset value, offer and redemption price $ 46.27 $ 22.43 $ 19.99
======== ======== =======
CLASS A
1 Net asset value, redemption price 46.27 22.43 19.90
Maximum sales charge of 5.50% 2.69 1.31 1.16
-------- ------- -------
2 Offering price $ 48.96 $ 23.74 $ 21.06
======== ======== =======
CLASS B
4 Net asset value and offering price $ 45.45 $ 22.33 $ 19.72
======== ======== =======
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
1 NET ASSET VALUE PER SHARE, AS ILLUSTRATED, IS THE AMOUNT WHICH WOULD BE PAID
UPON THE REDEMPTION OR EXCHANGE OF SHARES. 2 THE OFFER PRICE IS CALCULATED BY
DIVIDING THE NET ASSET VALUE OF CLASS A BY 1 MINUS THE MAXIMUM SALES CHARGE OF 5.50%.
3 THIS FUND WAS FORMERLY KNOWN AS THE EQUITY FUND.
4 CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF POSSIBLE
REDEMPTION CHARGE, SEE THE NOTES TO THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
--------------- -------------- --------------
SPECIAL INTERNATIONAL BALANCED
EQUITY FUND GROWTH FUND FUND
--------------- -------------- --------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Dividends $ 392 $ 3,194 $ 1,322
Interest 105 193 2,245
Less: foreign taxes withheld -- (276) --
------- ------- -------
Total investment income 497 3,111 3,567
------- ------- -------
EXPENSES:
Investment advisory fees 1,208 1,349 907
Less: waiver of investment advisory fees (518) -- (156)
Administrative fees 202 421 324
Less: waiver of administrative fees (73) (152) (117)
Transfer agent fees & expenses 29 59 43
Custodian fees (9) 266 --
Professional fees 2 15 13
Registration & filing fees 28 15 11
12b-1 fees -- individual shares 9 6 18
Printing fees 12 8 21
Organizational costs (4) -- 6
Miscellaneous 7 28 40
------- ------- -------
Total expenses 893 2,015 1,110
------- ------- -------
NET INVESTMENT INCOME (LOSS) (396) 1,096 2,457
------- ------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FORWARD FOREIGN CURRENCY
CONTRACTS AND FOREIGN CURRENCY:
Net realized gain on investments 11,242 9,450 16,536
Net realized (loss) on forward foreign currency contracts and
foreign currency transactions -- (593) --
Net unrealized appreciation on forward foreign currency contracts and
translation of assets and liabilities in foreign currencies -- 845 --
Net change in unrealized appreciation (depreciation) on investments (654) 2,483 7,962
------- ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $10,192 $13,281 $26,955
======= ======= =======
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE - JUNE 30, 1998:
CLASS Y
1Net asset value, offer and redemption price $ 11.25 $ 15.03 $ 15.48
======= ======= =======
CLASS A
1 Net asset value, redemption price 11.18 15.01 15.49
Maximum sales charge of 5.50% 0.65 0.87 0.90
------- ------- -------
2 Offering price $ 11.83 $ 15.88 $ 16.39
======= ======= =======
CLASS B
4 Net asset value and offering price $ 11.02 $ 14.96 $ 15.36
======= ======= =======
</TABLE>
42 & 43
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000) COREFUND FIXED INCOME FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
For the year ended June 30, 1998
------------ ------------ -----------
SHORT TERM SHORT-
INCOME INTERMEDIATE GOVERNMENT
FUND BOND FUND INCOME FUND
------------ ------------ -----------
INVESTMENT INCOME
<S> <C> <C> <C>
Interest $2,084 $10,700 $1,567
------ ------- ------
Total investment income 2,084 10,700 1,567
------ ------- ------
EXPENSES
Investment advisory fees 260 853 116
Less: waiver of investment advisory fees (172) (341) (2)
Administrative fees 88 426 58
Less:waiver of administrative fees (32) (154) (21)
Transfer agent fees & expenses 9 61 6
Custodian fees 5 -- --
Professional fees 1 13 (4)
Registration & filing fees 27 16 --
12b-1 fees -- individual shares 1 7 4
Trustee fees -- 9 1
Printing fees 3 23 4
Organizational costs 2 -- 5
Miscellaneous -- 14 5
------ ------- ------
Total expenses 192 927 172
------ ------- ------
NET INVESTMENT INCOME 1,892 9,773 1,395
------ ------- ------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 24 1,543 410
Net change in unrealized appreciation
on investments 66 1,007 381
------ ------- ------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,982 $12,323 $2,186
====== ======= ======
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE - JUNE 30, 1998:
CLASS Y
1 Net asset value, offer and redemption price $ 9.99 $ 9.97 $10.11
====== ======= ======
CLASS A
1 Net asset value, redemption price 9.98 9.97 10.11
Maximum sales charge of 3.25% or 4.75% 0.34 0.33 0.34
------ ------- ------
2 Offering price $10.32 $10.30 $10.45
====== ======= ======
-------- ------------ ------------ ----------
INTERMEDIATE PENNSYLVANIA NEW JERSEY
BOND MUNICIPAL MUNICIPAL MUNICIPAL
FUND BOND FUND BOND FUND BOND FUND
-------- ------------ ------------ ----------
INVESTMENT INCOME
<S> <C> <C> <C> <C>
Interest $11,656 $ 92 $ 826 $ 109
------- ------- ------ ------
Total investment income 11,656 92 826 109
------- ------- ------ ------
EXPENSES
Investment advisory fees 1,292 9 83 11
Less: waiver of investment advisory fees (681) (8) (83) (11)
Administrative fees 436 5 42 5
Less:waiver of administrative fees (157) (5) (42) (5)
Transfer agent fees & expenses 47 (1) 3 --
Custodian fees 61 -- -- --
Professional fees (11) 1 1 --
Registration & filing fees 16 4 2 2
12b-1 fees -- individual shares 5 2 11 1
Trustee fees -- -- -- --
Printing fees 36 -- 1 --
Organizational costs -- 3 5 1
Miscellaneous 25 3 1 --
------- ------- ------ ------
Total expenses 1,069 13 24 4
------- ------- ------ ------
NET INVESTMENT INCOME 10,587 79 802 105
------- ------- ------ ------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 3,450 3 127 --
Net change in unrealized appreciation
on investments 2,763 32 248 58
------- ------- ------ ------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $16,800 $ 114 $1,177 $ 163
======= ======= ====== ======
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE - JUNE 30, 1998:
CLASS Y
1 Net asset value, offer and redemption price $ 10.60 $10.21 $10.75 $10.47
======= ======= ====== ======
CLASS A
1 Net asset value, redemption price 10.61 10.21 10.75 10.46
Maximum sales charge of 3.25% or 4.75% 0.53 0.34 0.54 0.52
------- ------- ------ ------
2 Offering price $ 11.14 $10.55 $11.29 $10.98
======= ======= ====== ======
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
1 NET ASSET VALUE PER SHARE, AS ILLUSTRATED, IS THE AMOUNT WHICH WOULD BE PAID UPON THE REDEMPTION OR EXCHANGE OF SHARES.
2 THE OFFER PRICE IS CALCULATED BY DIVIDING THE NET ASSET VALUE OF CLASS A BY 1 MINUS THE MAXIMUM SALES CHARGE OF 3.25% FOR THE
SHORT TERM INCOME, SHORT-INTERMEDIATE BOND, GOVERNMENT INCOME AND INTERMEDIATE MUNICIPAL BOND FUNDS AND 4.75% FOR THE BOND,
GLOBAL BOND, PENNSYLVANIA MUNICIPAL BOND AND NEW JERSEY MUNICIPAL BOND FUNDS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</FN>
</TABLE>
44 & 45
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000) COREFUND MONEY MARKET FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
For the year ended June 30, 1998
---------- -------- --------
TREASURY CASH TAX-FREE
RESERVE RESERVE RESERVE
--------- -------- --------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest $45,307 $56,260 $5,634
------- ------- ------
Total investment income 45,307 56,260 5,634
------- ------- ------
EXPENSES:
Investment advisory fees 3,262 3,944 621
Less: waiver of investment advisory fees (818) (983) (155)
Administrative fees 2,039 2,465 388
Less: waiver of administrative fees (733) (886) (140)
Transfer agent fees & expenses 293 357 46
Custodian fees 5 2 1
Professional fees 82 95 11
Registration & filing fees 41 228 33
12b-1 fees -- individual shares 54 172 33
Trustee fees 21 54 8
Printing fees 142 143 25
Miscellaneous 129 55 26
------- ------- ------
Total expenses 4,517 5,485 897
------- ------- ------
NET INVESTMENT INCOME 40,790 50,775 4,737
------- ------- ------
NET REALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments (5) 7 (23)
------- ------- ------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $40,785 $50,782 $4,714
======= ======= ======
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46
<PAGE>
[This page intentionally left blank.]
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000) COREFUND EQUITY FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
For the year ended June 30,
------------------- ------------------- ------------------
EQUITY CORE EQUITY GROWTH
INDEX FUND FUND(2) EQUITY FUND
------------------- ------------------- ------------------
7/1/97 7/1/96 7/1/97 7/1/96 7/1/97 7/1/96
TO TO TO TO TO TO
6/30/98 6/30/97 6/30/98 6/30/97 6/30/98 6/30/97
------- ------- ------- ------- ------- -------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $ 3,414 $ 3,256 $ 790 $ 2,927 $ (313) $ 399
Net realized gain on investments, forward foreign
currency contracts and foreign currency 8,187 3,591 99,738 66,598 42,462 14,635
Net unrealized appreciation (depreciation) on
investments, forward foreign currency contracts
and translation of assets and liabilites in
foreign currencies 61,049 55,389 10,477 67,597 17,462 12,411
-------- -------- -------- -------- -------- --------
Net increase in net assets resulting from operations 72,650 62,236 111,005 137,122 59,611 27,445
-------- -------- -------- -------- -------- --------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class Y (3,273) (3,225) (1,045) (2,858) -- (393)
Class A (109) (28) (4) (49) -- (3)
Class B (4) -- -- -- -- --
Net realized gains:
Class Y (8,013) (1,484) (69,731) (35,253) (11,719) (13,864)
Class A (265) (6) (2,420) (977) (401) (404)
Class B (16) -- (17) -- (7) --
-------- -------- -------- -------- -------- --------
Total dividends distributed (11,680) (4,743) (73,217) (39,137) (12,127) (14,664)
-------- -------- -------- -------- -------- --------
CAPITAL TRANSACTIONS (1):
Class Y:
Proceeds from shares issued 49,813 43,492 82,285 56,759 53,164 38,807
Reinvestment of cash distributions 10,202 4,960 64,322 38,110 10,162 12,752
Cost of shares redeemed (44,321) (30,407) (134,203) (89,855) (51,069) (36,303)
-------- -------- -------- -------- -------- --------
Increase in net assets from Class Y transactions 15,694 18,045 12,404 5,014 12,257 15,256
-------- -------- -------- -------- -------- --------
Class A:
Proceeds from shares issued 6,499 4,101 4,004 3,395 1,151 1,712
Reinvestment of cash distributions 411 34 2,408 1,038 401 410
Cost of shares redeemed (1,435) (103) (3,155) (2,376) (1,037) (1,001)
-------- -------- -------- -------- -------- --------
Increase in net assets from Class A transactions 5,475 4,032 3,257 2,057 515 1,121
-------- -------- -------- -------- -------- --------
Class B:
Proceeds from shares issued 1,737 -- 336 -- 144 --
Reinvestment of cash distributions 20 -- 17 -- 7 --
Cost of shares redeemed (62) -- (15) -- (1) --
-------- -------- -------- -------- -------- --------
Increase in net assets from Class B transactions 1,695 -- 338 -- 150 --
-------- -------- -------- -------- -------- --------
Increase in net assets derived from capital
share transactions 22,864 22,077 15,999 7,071 12,922 16,377
-------- -------- -------- -------- -------- --------
Net increase in net assets 83,834 79,570 53,787 105,056 60,406 29,158
-------- -------- -------- -------- -------- --------
NET ASSETS:
Beginning of period 245,920 166,350 531,058 426,002 152,393 123,235
-------- -------- -------- -------- -------- --------
End of period $329,754 $245,920 $584,845 $531,058 $212,799 $152,393
======== ======== ======== ======== ======== ========
SPECIAL INTERNATIONAL BALANCED
EQUITY FUND GROWTH FUND FUND
------------------- ------------------ ------------------
7/1/97 7/1/96 7/1/97 7/1/96 7/1/97 7/1/96
TO TO TO TO TO TO
6/30/98 6/30/97 6/30/98 6/30/97 6/30/98 6/30/97
------- ------- ------- ------- ------- -------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $ (396) $ 121 $ 1,096 $ 969 $ 2,457 $ 3,139
Net realized gain on investments, forward foreign
currency contracts and foreign currency 11,242 7,793 8,857 5,290 16,536 7,717
Net unrealized appreciation (depreciation) on
investments, forward foreign currency contracts
and translation of assets and liabilites in
foreign currencies (654) 3,603 3,328 15,689 7,962 6,601
------- ------- -------- -------- -------- --------
Net increase in net assets resulting from operations 10,192 11,517 13,281 21,948 26,955 17,457
------- ------- -------- -------- -------- --------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class Y -- (177) (1,958) (3,802) (2,354) (3,056)
Class A -- (2) (23) (53) (93) (92)
Class B -- -- -- -- (6) --
Net realized gains:
Class Y (9,099) (13,011) (6,263) (8,375) (6,356) (5,885)
Class A (350) (307) (93) (130) (282) (184)
Class B (15) -- (1) -- (28) --
------- ------- -------- -------- -------- --------
Total dividends distributed (9,464) (13,497) (8,338) (12,360) (9,119) (9,217)
------- ------- -------- -------- -------- --------
CAPITAL TRANSACTIONS (1):
Class Y:
Proceeds from shares issued 12,968 13,884 80,031 34,899 23,536 23,565
Reinvestment of cash distributions 8,424 13,074 7,249 11,015 6,954 8,737
Cost of shares redeemed (20,152) (16,684) (79,534) (31,528) (27,727) (29,150)
------- ------- -------- -------- -------- --------
Increase in net assets from Class Y transactions 1,240 10,274 7,746 14,386 2,763 3,152
------- ------- -------- -------- -------- --------
Class A:
Proceeds from shares issued 858 1,020 413 489 2,405 1,285
Reinvestment of cash distributions 350 310 115 178 367 293
Cost of shares redeemed (552) (121) (482) (506) (1,158) (833)
------- ------- -------- -------- -------- --------
Increase in net assets from Class A transactions 656 1,209 46 161 1,614 745
------- ------- -------- -------- -------- --------
Class B:
Proceeds from shares issued 243 -- 53 -- 864 --
Reinvestment of cash distributions 14 -- 1 -- 33 --
Cost of shares redeemed -- -- -- -- (9) --
------- ------- -------- -------- -------- --------
Increase in net assets from Class B transactions 257 -- 54 -- 888 --
------- ------- -------- -------- -------- --------
Increase in net assets derived from capital
share transactions 2,153 11,483 7,846 14,547 5,265 3,897
------- ------- -------- -------- -------- --------
Net increase in net assets 2,881 9,503 12,789 24,135 23,101 12,137
------- ------- -------- -------- -------- --------
NET ASSETS:
Beginning of period 74,327 64,824 165,548 141,413 117,840 105,703
------- ------- -------- -------- -------- --------
End of period $77,208 $74,327 $178,337 $165,548 $140,941 $117,840
======= ======= ======== ======== ======== ========
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
(1) FOR CAPITAL SHARE TRANSACTIONS PLEASE SEE FOOTNOTE 8 IN THE NOTES TO THE FINANCIAL STATEMENTS.
(2) THIS FUND WAS FORMERLY KNOWN AS THE EQUITY FUND.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
48 &49
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000) COREFUND FIXED INCOME FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
For the year ended June 30,
------------------- ------------------ ------------------ ------------------
SHORT-
SHORT TERM INTERMEDIATE GOVERNMENT BOND
INCOME FUND BOND FUND INCOME FUND FUND
------------------ ------------------- ----------------- -----------------
7/1/97 7/1/96 7/1/97 7/1/96 7/1/97 7/1/96 7/1/97 7/1/96
TO TO TO TO TO TO TO TO
6/30/98 6/30/97 6/30/98 6/30/97 6/30/98 6/30/97 6/30/98 6/30/97
------- ------- ------- ------- ------- ------- ------- -------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income $ 1,892 $ 1,757 $ 9,773 $ 10,074 $ 1,395 $ 1,293 $ 10,587 $ 12,245
Net realized gain (loss) on investments 24 (8) 1,543 (26) 410 (156) 3,450 (735)
Net unrealized appreciation on investments 66 91 1,007 993 381 434 2,766 2,749
------- ------- -------- -------- ------- ------- -------- --------
Net increase in net assets resulting
from operations 1,982 1,840 12,323 11,041 2,186 1,571 16,803 14,259
------- ------- -------- -------- ------- ------- -------- --------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class Y (1,870) (1,748) (9,645) (9,902) (1,299) (1,204) (10,479) (12,161)
Class A (27) (9) (150) (172) (100) (90) (106) (84)
Net realized gains:
Class Y -- -- -- -- -- -- -- --
Class A -- -- -- -- -- -- -- --
------- ------- -------- -------- ------- ------- -------- --------
Total dividends distributed (1,897) (1,757) (9,795) (10,074) (1,399) (1,294) (10,585) (12,245)
------- ------- -------- -------- ------- ------- -------- --------
CAPITAL TRANSACTIONS (1):
Class Y:
Proceeds from shares issued 9,821 16,475 39,707 45,113 8,314 8,152 24,210 18,942
Reinvestment of cash distributions 1,723 1,808 8,779 9,516 711 612 9,415 12,215
Cost of shares redeemed (15,621) (11,486) (38,977) (52,263) (4,363) (3,957) (59,407) (49,397)
------- ------- -------- -------- ------- ------- -------- --------
Increase (decrease) in net assets from
Class Y transactions (4,077) 6,797 9,509 2,366 4,662 4,807 (25,782) (18,240)
------- ------- -------- -------- ------- ------- -------- --------
Class A:
Proceeds from shares issued 68 483 331 391 484 579 484 579
Reinvestment of cash distributions 27 9 117 143 83 85 92 78
Cost of shares redeemed (29) (1) (663) (865) (639) (311) (543) (323)
------- ------- -------- -------- ------- ------- -------- --------
Increase (decrease) in net assets from
Class A transactions 66 491 (215) (331) (72) 353 33 334
------- ------- -------- -------- ------- ------- -------- --------
Increase (decrease) in net assets derived
from capital share transactions (4,011) 7,288 9,294 2,035 4,590 5,160 (25,749) (17,906)
------- ------- -------- -------- ------- ------- -------- --------
Net increase (decrease) in net assets (3,926) 7,371 11,822 3,002 5,377 5,437 (19,531) (15,892)
------- ------- -------- -------- ------- ------- -------- --------
NET ASSETS:
Beginning of period 37,504 30,133 165,905 162,903 20,667 15,230 183,986 199,878
------- ------- -------- -------- ------- ------- -------- --------
End of period $33,578 $37,504 $177,727 $165,905 $26,044 $20,667 $164,455 $183,986
------- ------- -------- -------- ------- ------- -------- --------
------------------ ------------------ ------------------
INTERMEDIATE PENNSYLVANIA NEW JERSEY
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
------------------ ------------------ ------------------
7/1/97 7/1/96 7/1/97 7/1/96 7/1/97 7/1/96
TO TO TO TO TO TO
6/30/98 6/30/97 6/30/98 6/30/97 6/30/98 6/30/97
------- ------- ------- ------- ------- -------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 79 $ 71 $ 802 $ 583 $ 105 $ 81
Net realized gain (loss) on investments 3 (6) 127 20 -- (3)
Net unrealized appreciation on investments 32 25 248 240 58 24
------- ------- ------- ------- ------- -------
Net increase in net assets resulting
from operations 114 90 1,177 843 163 102
------- ------- ------- ------- ------- -------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class Y (42) (34) (600) (521) (77) (65)
Class A (38) (37) (205) (62) (28) (16)
Net realized gains:
Class Y -- -- -- -- -- (8)
Class A -- -- -- -- -- (2)
------- ------- ------- ------- ------- -------
Total dividends distributed (80) (71) (805) (583) (105) (91)
------- ------- ------- ------- ------- -------
CAPITAL TRANSACTIONS (1):
Class Y:
Proceeds from shares issued 381 841 4,897 3,530 182 525
Reinvestment of cash distributions 15 12 249 297 27 14
Cost of shares redeemed (339) (269) (2,194) (2,772) (352) (388)
------- ------- ------- ------- ------- -------
Increase (decrease) in net assets from
Class Y transactions 57 584 2,952 1,055 (143) 151
------- ------- ------- ------- ------- -------
Class A:
Proceeds from shares issued 69 80 4,285 1,341 479 99
Reinvestment of cash distributions 35 37 174 56 24 15
Cost of shares redeemed (203) (186) (432) (420) (82) (22)
------- ------- ------- ------- ------- -------
Increase (decrease) in net assets from
Class A transactions (99) (69) 4,027 977 421 92
------- ------- ------- ------- ------- -------
Increase (decrease) in net assets derived
from capital share transactions (42) 515 6,979 2,032 278 243
------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets (8) 534 7,351 2,292 336 254
------- ------- ------- ------- ------- -------
NET ASSETS:
Beginning of period 1,952 1,418 12,175 9,883 1,875 1,621
------- ------- ------- ------- ------- -------
End of period $ 1,944 $ 1,952 $19,526 $12,175 $ 2,211 $ 1,875
------- ------- ------- ------- ------- -------
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
(1) FOR CAPITAL SHARE TRANSACTIONS PLEASE SEE FOOTNOTE 8 IN THE NOTES TO THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
50 & 51
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000) COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
For the year ended June 30,
<TABLE>
<CAPTION>
------------------------ ------------------- -----------------
TREASURY CASH TAX-FREE
RESERVE RESERVE RESERVE
------------------------ ------------------- -----------------
7/1/97 7/1/96 7/1/97 7/1/96 7/1/97 7/1/96
TO TO TO TO TO TO
6/30/98 6/30/97 6/30/98 6/30/97 6/30/98 6/30/97
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 40,790 $ 43,860 $ 50,775 $ 44,127 $ 4,737 $ 3,787
Net realized gain (loss) on
investments (5) 8 7 1 (23) (1)
--------- --------- ---------- --------- -------- --------
Net increase in net assets
resulting from operations 40,785 43,868 50,782 44,128 4,714 3,786
--------- --------- ---------- --------- -------- --------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class Y (39,768) (43,173) (47,411) (43,042) (4,410) (3,677)
Class C (1,022) (687) (3,375) (1,085) (376) (86)
Class B -- -- (2) -- -- --
--------- --------- ---------- --------- -------- --------
Total dividends distributed (40,790) (43,860) (50,788) (44,127) (4,786) (3,763)
--------- --------- ---------- --------- -------- --------
CAPITAL SHARE TRANSACTIONS (1):
Class Y
Proceeds from shares issued 1,985,423 2,548,964 2,037,759 2,154,887 291,061 392,069
Reinvestment of cash distributions 2,577 4,246 2,932 3,136 193 229
Cost of shares redeemed (2,163,427) (2,610,396) (2,122,644) (2,061,985) (285,844) (376,938)
--------- --------- ---------- --------- -------- --------
Increase (decrease) in net assets
from Class Y transactions (175,427) (57,186) (81,953) 96,038 5,410 15,360
--------- --------- ---------- --------- -------- --------
Class C
Proceeds from shares issued 83,009 12,429 248,575 44,890 79,690 3,779
Reinvestment of cash distributions 756 264 3,375 1,023 374 79
Cost of shares redeemed (73,336) (19,933) (199,480) (37,956) (67,310) (3,506)
--------- --------- ---------- --------- -------- --------
Increase (decrease) in net assets
from Class C transactions 10,429 (7,240) 52,470 7,957 12,754 352
--------- --------- ---------- --------- -------- --------
Class B
Proceeds from shares issued -- -- 152 -- -- --
Reinvestment of cash distributions -- -- 2 -- -- --
Cost of shares redeemed -- -- (57) -- -- --
--------- --------- ---------- --------- -------- --------
Increase in net assets from Class B
transactions -- -- 97 -- -- --
--------- --------- ---------- --------- -------- --------
Increase (decrease) in net assets
derived from capital share
transactions (164,998) (64,426) (29,386) 103,995 18,164 15,712
--------- --------- ---------- --------- -------- --------
Net increase (decrease) in
net assets (165,003) (64,418) (29,392) 103,996 18,092 15,735
--------- --------- ---------- --------- -------- --------
NET ASSETS:
Beginning of period 847,530 911,948 913,944 809,948 122,781 107,046
--------- --------- ---------- --------- -------- --------
End of period $ 682,527 $ 847,530 $ 884,552 $ 913,944 $140,873 $122,781
========= ========= ========== ========= ======== ========
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
(1) FOR CAPITAL SHARE TRANSACTIONS PLEASE SEE FOOTNOTE 8 IN THE NOTES TO THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
52
<PAGE>
FINANCIAL HIGHLIGHTS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET
NET ASSET NET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO
VALUE INVESTMENT UNREALIZED FROM NET FROM ASSET VALUE END OF EXPENSES
BEGINNING INCOME GAINS OR (LOSSES) INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE
OF PERIOD (LOSS) ON INVESTMENTS INCOME GAINS OF PERIOD RETURN(2) (000) NET ASSETS
--------- ---------- ---------------- ------------- ------------- ----------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY INDEX FUND
- -----------------
CLASS Y**
1998 $37.39 $ 0.50 $10.12 $(0.50) $(1.24) $46.27 29.17% $315,920 0.38%
1997 28.47 0.51 9.16 (0.51) (0.24) 37.39 34.44 241,413 0.37
1996 23.79 0.51 5.47 (0.51) (0.79) 28.47 25.69 166,350 0.35
1995 20.54 0.52 4.24 (0.52) (0.99) 23.79 24.45 112,533 0.37
1994 20.97 0.55 (0.43) (0.55) -- 20.54 0.55 72,552 0.35
CLASS A
1998 $37.37 $ 0.49 $10.12 $(0.47) $(1.24) $46.27 29.17% $ 11,944 0.38%
1997(4) 29.62 0.32 8.05 (0.38) (0.24) 37.37 28.58+ 4,507 0.37
CLASS B
1998(5) $39.16 $ 0.09 $ 7.59 $(0.15) $(1.24) $45.45 22.75%+ $ 1,890 1.35%
- -------------------
CORE EQUITY FUND(3)
- -------------------
CLASS Y*
1998 $21.11 $ 0.04 $ 4.24 $(0.04) $(2.92) $22.43 21.90% $563,987 1.00%
1997 17.26 0.12 5.32 (0.12) (1.47) 21.11 33.10 515,015 0.98
1996 17.07 0.14 1.49 (0.14) (1.30) 17.26 19.24 414,824 0.97
INSTITUTIONAL CLASS*
1995 $15.00 $ 0.19 $ 2.87 $(0.19) $(0.80) $17.07 22.00% $378,352 1.05%
CLASS A*
1998 $21.13 $(0.02) $ 4.24 $ -- $(2.92) $22.43 21.54% $ 20,509 1.25%
1997 17.28 0.07 5.32 (0.07) (1.47) 21.13 32.74 16,043 1.23
1996 17.08 0.12 1.49 (0.11) (1.30) 17.28 19.11 11,178 1.22
RETAIL CLASS*
1995 $15.00 $ 0.18 $ 2.87 $(0.17) $(0.80) $17.08 21.94% $ 6,591 1.34%
PRIOR CLASS
1994 $15.39 $ 0.11 $ 0.22 $(0.11) $(0.61) $15.00 2.21% $ 50,128 1.49%
CLASS B
1998(5) $22.76++ $(0.09) $ 2.90 $ -- $(3.24)++ $22.33 14.38%+ $ 349 2.00%
- ------------------
GROWTH EQUITY FUND
- ------------------
CLASS Y**
1998 $15.43 $(0.03) $ 5.83 $ -- $(1.24) $19.99 39.69% $205,889 0.98%
1997 14.19 0.04 2.81 (0.04) (1.57) 15.43 21.67 147,700 0.96
1996 11.18 0.08 3.36 (0.08) (0.35) 14.19 31.36 120,073 0.89
1995 9.11 0.08 2.07 (0.08) -- 11.18 23.71 91,345 0.76
1994 9.95 0.05 (0.84) (0.05) -- 9.11 (8.01) 64,877 0.69
CLASS A**
1998 $15.39 $(0.08) $ 5.83 $ -- $(1.24) $19.90 39.46% $ 6,741 1.23%
1997 14.17 0.01 2.79 (0.01) (1.57) 15.39 21.29 4,693 1.21
1996 11.17 0.05 3.35 (0.05) (0.35) 14.17 31.00 3,162 1.14
1995 9.10 0.06 2.07 (0.06) -- 11.17 23.44 2,043 1.01
1994 9.95 0.04 (0.85) (0.04) -- 9.10 (8.13) 1,730 0.94
CLASS B
1998(6) $17.32 $(0.10) $ 3.74 $ -- $(1.24) $19.72 22.27%+ $ 169 1.94%
RATIO OF
RATIO NET INCOME
RATIO OF EXPENSES (LOSS) TO
OF NET TO AVERAGE AVERAGE
INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE***
---------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
- -----------------
EQUITY INDEX FUND
- -----------------
CLASS Y**
1998 1.19% 0.71% 0.86% 12%
1997 1.63 0.71 1.29 11
1996 1.94 0.71 1.59 13
1995 2.48 0.76 2.09 27
1994 2.63 0.75 2.23 13
CLASS A
1998 1.19% 0.71% 0.86% 12%
1997(4) 1.51 0.69 1.19 11
CLASS B
1998(5) 0.16% 1.68% (0.17)% 12%
- -------------------
CORE EQUITY FUND(3)
- -------------------
CLASS Y*
1998 0.15% 1.07% 0.08% 61%
1997 0.63 1.03 0.58 79
1996 1.15 1.01 1.11 114
INSTITUTIONAL CLASS*
1995 1.44% 1.10% 1.44% 119%
CLASS A*
1998 (0.10)% 1.32% (0.17)% 61%
1997 0.38 1.28 0.33 79
1996 0.89 1.26 0.85 114
RETAIL CLASS*
1995 1.23% 1.53% 1.04% 119%
PRIOR CLASS
1994 0.75% 1.51% 0.73% 35%
CLASS B
1998(5) (0.85)% 2.07% (0.92)% 61%
- ------------------
GROWTH EQUITY FUND
- ------------------
CLASS Y**
1998 (0.17)% 1.07% (0.26)% 86%
1997 0.30 1.06 0.20 74
1996 0.64 1.05 0.48 81
1995 0.84 1.10 0.50 113
1994 0.48 1.11 0.06 127
CLASS A**
1998 (0.42)% 1.32% (0.51)% 86%
1997 0.04 1.31 (0.06) 74
1996 0.40 1.30 0.23 81
1995 0.59 1.35 0.25 113
1994 0.23 1.36 (0.19) 127
CLASS B
1998(6) (1.13)% 2.03% (1.22)% 86%
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* ON FEBRUARY 21, 1995, THE SHARES OF THE FUNDS WERE REDESIGNED AS EITHER
RETAIL OR INSTITUTIONAL SHARES. ON THAT DATE, THE FUND'S NET INVESTMENT
INCOME, EXPENSES AND DISTRIBUTIONS FOR THE PERIOD NOVEMBER 1, 1994 THROUGH
FEBRUARY 20, 1995 WERE ALLOCATED TO EACH CLASS OF SHARES. THE BASIS FOR THE
ALLOCATION WAS THE RELATIVE NET ASSETS OF EACH CLASS OF SHARES AS OF FEBRUARY
21, 1995. THE RESULTS WERE COMBINED WITH THE RESULTS OF OPERATIONS AND
DISTRIBUTIONS FOR EACH APPLICABLE CLASS FOR THE PERIOD FEBRUARY 21, 1995
THROUGH OCTOBER 31, 1995. FOR THE YEAR ENDED OCTOBER 31, 1995, THE FINANCIAL
HIGHLIGHTS' RATIOS OF EXPENSES, NET INVESTMENT INCOME, TOTAL RETURN, AND THE
PER SHARE INVESTMENT ACTIVITIES AND DISTRIBUTIONS REFLECT THIS ALLOCATION.
ADDITIONALLY, ON APRIL 15 & 22, 1996 THE CONESTOGA EQUITY AND SPECIAL EQUITY
FUNDS WERE ACQUIRED BY COREFUNDS, INC.; AT WHICH TIME THE INSTITUTIONAL CLASS
OF SHARES OF THESE FUNDS WERE EXCHANGED FOR CLASS Y SHARES AND THE RETAIL
CLASS OF SHARES OF THESE FUNDS WERE EXCHANGED FOR CLASS A SHARES.
** ON APRIL 22, 1996 THE SERIES A SHARES OF EACH FUND, EXCLUDING THE SPECIAL
EQUITY FUND, WERE REDESIGNATED CLASS Y AND THE SERIES B SHARES OF EACH FUND
WERE REDESIGNATED CLASS A.
***FOR THE YEAR ENDED JUNE 30, 1996, TRANSACTIONS RELATING TO THE MERGER WERE
EXCLUDED FROM THE CALCULATION OF THE PORTFOLIO TURNOVER RATE.
+ THIS FIGURE HAS NOT BEEN ANNUALIZED.
++ AMOUNTS ADJUSTED TO REFLECT A REVERSE STOCK SPLIT WHICH OCCURRED ON JUNE 24, 1998.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
53
<PAGE>
FINANCIAL HIGHLIGHTS COREFUND EQUITY FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET
NET ASSET NET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO
VALUE INVESTMENT UNREALIZED FROM NET FROM ASSET VALUE END OF EXPENSES
BEGINNING INCOME GAINS OR (LOSSES) INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE
OF PERIOD (LOSS) ON INVESTMENTS INCOME GAINS OF PERIOD RETURN(2) (000) NET ASSETS
--------- ---------- ---------------- ------------- ------------- ----------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
SPECIAL EQUITY FUND(3)
- ----------------------
CLASS Y*
1998 $11.27 $(0.05) $ 1.52 $ -- $(1.49) $11.25 14.23% $73,981 1.10%
1997 11.86 0.02 1.81 (0.03) (2.39) 11.27 17.94 71,980 0.84
1996 11.42 0.07 2.13 (0.07) (1.69) 11.86 22.27 63,680 0.34
INSTITUTIONAL CLASS*
1995 $ 9.37 $ 0.12 $ 2.12 $(0.12) $(0.07) $11.42 24.44% $57,396 0.32%
CLASS A*
1998 $11.25 $(0.10) $ 1.52 $ -- $(1.49) $11.18 13.78% $ 2,981 1.35%
1997 11.85 -- 1.81 (0.02) (2.39) 11.25 17.73 2,347 1.14
1996 11.42 0.08 2.11 (0.07) (1.69) 11.85 22.14 1,144 0.37
RETAIL CLASS*
1995 $ 9.37 $ 0.12 $ 2.12 $(0.12) $(0.07) $11.42 24.44%$ 734 0.27%
PRIOR CLASS
1994(1) $10.00 $ 0.06 $(0.63) $(0.06) $ -- $ 9.37 (5.72)% $10,069 0.15%
CLASS B
1998(5) $12.80 $(0.07) $(0.22) $ -- $(1.49) $11.02 0.19%+ $ 246 2.02%
- -------------------------
INTERNATIONAL GROWTH FUND
- -------------------------
CLASS Y**
1998 $14.72 $0.11 $ 0.92 $(0.17) $(0.55) $15.03 7.64% $175,731 1.19%
1997 13.97 0.14 1.84 (0.37) (0.86) 14.72 15.43 163,117 1.20
1996 12.29 0.16 1.86 (0.28) (0.06) 13.97 16.72 139,275 1.14
1995 13.18 0.12 (0.17) (0.04) (0.80) 12.29 (0.21) 110,838 1.05
1994 11.71 0.12 1.78 (0.12) (0.31) 13.18 16.28 108,911 0.99
CLASS A**
1998 $14.70 $0.05 $ 0.94 $(0.13) $(0.55) $15.01 7.39% $ 2,547 1.44%
1997 13.96 0.09 1.85 (0.34) (0.86) 14.70 15.09 2,431 1.45
1996 12.27 0.11 1.89 (0.25) (0.06) 13.96 16.54 2,138 1.39
1995 13.17 0.09 (0.17) (0.02) (0.80) 12.27 (0.48) 1,943 1.30
1994 11.71 0.06 1.82 (0.11) (0.31) 13.17 16.08 2,019 1.24
CLASS B
1998(8) $13.79 $0.11 $ 1.77 $(0.16) $(0.55) $14.96 15.72%+ $ 59 2.19%
- -------------
BALANCED FUND
- -------------
CLASS Y**
1998 $13.52 $0.27 $ 2.71 $(0.27) $(0.75) $15.48 23.15% $133,399 0.84%
1997 12.59 0.36 1.61 (0.36) (0.68) 13.52 16.44 113,642 0.78
1996 11.06 0.33 1.68 (0.33) (0.15) 12.59 18.41 102,515 0.81
1995 9.88 0.35 1.21 (0.35) (0.03) 11.06 16.21 61,092 0.73
1994 10.39 0.35 (0.51) (0.35) -- 9.88 (1.62) 42,429 0.62
CLASS A**
1998 $13.52 $0.25 $ 2.71 $(0.24) $(0.75) $15.49 22.94% $ 6,576 1.09%
1997 12.59 0.32 1.61 (0.32) (0.68) 13.52 16.15 4,198 1.03
1996 11.06 0.30 1.68 (0.30) (0.15) 12.59 18.13 3,188 1.06
1995 9.89 0.34 1.19 (0.33) (0.03) 11.06 15.84 2,344 0.98
1994 10.38 0.31 (0.49) (0.31) -- 9.89 (1.86) 2,222 0.87
CLASS B
1998(7) $14.39 $0.06 $ 1.77 $(0.11) $(0.75) $15.36 14.65%+ $ 966 1.84%
RATIO OF
RATIO NET INCOME
RATIO OF EXPENSES (LOSS) TO
OF NET TO AVERAGE AVERAGE
INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE***
---------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
- ----------------------
SPECIAL EQUITY FUND(3)
- ----------------------
CLASS Y*
1998 (0.48)% 1.86% (1.24)% 62%
1997 0.19 1.82 (0.79) 74
1996 0.94 1.79 (0.51) 72
INSTITUTIONAL CLASS*
1995 1.14% 1.97% (0.51)% 129%
CLASS A*
1998 (0.73)% 2.11% (1.49)% 62%
1997 (0.12) 2.07 (1.05) 74
1996 0.91 1.82 (0.55) 72
RETAIL
1995 1.29% 2.24% (0.68)% 129%
PRIOR CLASS
1994(1) 1.06% 2.10% (0.89)% 39%
CLASS B
1998(5) (1.36)% 2.78% (2.12)% 62%
- -------------------------
INTERNATIONAL GROWTH FUND
- -------------------------
CLASS Y**
1998 0.65% 1.28% 0.56% 53%
1997 0.82 1.29 0.73 59
1996 1.05 1.25 0.94 41
1995 0.98 1.19 0.84 59
1994 0.23 1.18 0.04 67
CLASS A**
1998 0.40% 1.53% 0.31% 53%
1997 0.57 1.54 0.48 59
1996 0.80 1.50 0.69 41
1995 0.73 1.44 0.59 59
1994 0.05 1.43 (0.14) 67
CLASS B
1998(8) 0.01% 2.28% (0.07)% 53%
- -------------
BALANCED FUND
- -------------
CLASS Y**
1998 1.91% 1.05% 1.70% 60%
1997 2.79 1.00 2.57 54
1996 2.79 1.03 2.57 74
1995 3.51 1.07 3.17 46
1994 3.46 1.08 3.00 56
CLASS A**
1998 1.66% 1.30% 1.45% 60%
1997 2.54 1.25 2.32 54
1996 2.53 1.27 2.32 74
1995 3.27 1.32 2.93 46
1994 3.21 1.33 2.75 56
CLASS B
1998(7) 0.91% 2.05% 0.70% 60%
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
1 COMMENCED OPERATIONS MARCH 15, 1994. UNLESS OTHERWISE NOTED, ALL RATIOS FOR THE
PERIOD HAVE BEEN ANNUALIZED.
2 TOTAL RETURN DOES NOT REFLECT APPLICABLE SALES LOAD. ADDITIONALLY TOTAL
RETURN FOR CLASS Y & CLASS A FOR THE CORE EQUITY & SPECIAL EQUITY FUNDS FOR
1996 ARE FOR AN EIGHT MONTH PERIOD ENDED JUNE 30, 1996.
3 THE PER SHARE AMOUNT FOR THESE FUNDS FOR THE YEAR ENDED JUNE 30, 1996 REPRESENTS
THE PERIOD FROM NOVEMBER 1, 1995 TO JUNE 30, 1996. ALL PRIOR YEARS ARE FOR THE
PERIODS NOVEMBER 1 TO OCTOBER 31.
4 COMMENCED OPERATIONS ON OCTOBER 9, 1996. UNLESS OTHERWISE NOTED, ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
5 COMMENCED OPERATIONS ON NOVEMBER 7, 1997. UNLESS OTHERWISE NOTED, ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
6 COMMENCED OPERATIONS ON NOVEMBER 18, 1997. UNLESS OTHERWISE NOTED, ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
7 COMMENCED OPERATIONS ON NOVEMBER 5, 1997. UNLESS OTHERWISE NOTED, ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
8 COMMENCED OPERATIONS ON NOVEMBER 24, 1997. UNLESS OTHERWISE NOTED, ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
54
<PAGE>
FINANCIAL HIGHLIGHTS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET
NET ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO
VALUE NET UNREALIZED FROM NET FROM ASSET VALUE END OF EXPENSES
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN(4) (000) NET ASSETS
--------- ---------- ---------------- ------------- ------------- ----------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------------
SHORT TERM INCOME FUND (5)
- --------------------------
CLASS Y*
1998 $ 9.97 $0.54 $ 0.02 $(0.54) $ -- $ 9.99 5.75% $ 33,027 0.54%
1997 9.94 0.53 0.03 (0.53) -- 9.97 5.82 37,011 0.47
1996 10.05 0.36 (0.08) (0.38) (0.01) 9.94 2.78 30,132 0.51
INSTITUTIONAL CLASS*
1995 (1) $10.00 $0.25 $ 0.03 $(0.23) $ -- $10.05 2.57%+ $ 36,059 0.63%
CLASS A*
1998 $ 9.96 $0.51 $ 0.02 $(0.51) $ -- $ 9.98 5.49% $ 551 0.79%
1997 9.93 0.51 0.03 (0.51) -- 9.96 5.59 493 0.73
1996 10.04 0.35 (0.10) (0.35) (0.01) 9.93 2.55 1 0.76
RETAIL CLASS*
1995 (2) $10.01 $0.23 $ 0.02 $(0.22) $ -- $10.04 2.87%+ $ 11 0.88%
- ----------------------------
SHORT-INTERMEDIATE BOND FUND
- ----------------------------
CLASS Y**
1998 $ 9.83 $0.57 $ 0.14 $(0.57) $ -- $ 9.97 7.40% $175,149 0.54%
1997 9.76 0.59 0.07 (0.59) -- 9.83 6.90 163,153 0.49
1996 9.84 0.57 (0.08) (0.57) -- 9.76 5.05 159,841 0.55
1995 9.63 0.53 0.21 (0.53) -- 9.84 8.22 55,128 0.60
1994 10.18 0.43 (0.53) (0.43) (0.02) 9.63 (0.32) 48,379 0.58
CLASS A**
1998 $ 9.83 $0.55 $ 0.14 $(0.55) $ -- $ 9.97 7.15% $ 2,578 0.79%
1997 9.76 0.56 0.07 (0.56) -- 9.83 6.64 2,752 0.74
1996 9.84 0.54 (0.08) (0.54) -- 9.76 4.79 3,062 0.81
1995 9.63 0.54 0.20 (0.53) -- 9.84 7.95 1,961 0.85
1994 10.18 0.41 (0.53) (0.41) (0.02) 9.63 (0.56) 9,365 0.83
- ----------------------
GOVERNMENT INCOME FUND
- ----------------------
CLASS Y**
1998 $ 9.76 $0.60 $ 0.35 $(0.60) $ -- $10.11 10.00% $ 24,396 0.72%
1997 9.62 0.62 0.14 (0.62) -- 9.76 8.15 19,007 0.70
1996 9.83 0.61 (0.21) (0.61) -- 9.62 4.09 13,943 0.64
1995 9.52 0.62 0.31 (0.62) -- 9.83 10.26 11,305 0.59
1994 10.18 0.50 (0.62) (0.50) (0.04) 9.52 (1.34) 9,089 0.50
CLASS A**
1998 $ 9.76 $0.58 $ 0.35 $(0.58) $ -- $10.11 9.74% $ 1,648 0.97%
1997 9.62 0.60 0.14 (0.60) -- 9.76 7.88 1,660 0.95
1996 9.84 0.58 (0.22) (0.58) -- 9.62 3.73 1,287 0.88
1995 9.51 0.61 0.33 (0.61) -- 9.84 10.23 1,374 0.85
1994 10.17 0.47 (0.62) (0.47) (0.04) 9.51 (1.57) 1,536 0.75
- ------------
BOND FUND(5)
- ------------
CLASS Y*
1998 $10.24 $0.64 $ 0.36 $(0.64) $ -- $10.60 9.96% $162,738 0.61%
1997 10.15 0.64 0.09 (0.64) -- 10.24 7.43 182,364 0.56
1996 10.55 0.43 (0.30) (0.45) (0.08) 10.15 1.23 198,605 0.55
INSTITUTIONAL CLASS*
1995 $ 9.81 $0.61 $ 0.37 $(0.58) $ -- $10.55 13.87% $194,442 0.71%
CLASS A*
1998 $10.24 $0.61 $ 0.37 $(0.61) $ -- $10.61 9.79% $ 1,717 0.86%
1997 10.15 0.62 0.09 (0.62) -- 10.24 7.15 1,622 0.81
1996 10.56 0.44 (0.33) (0.44) (0.08) 10.15 0.98 1,273 0.80
RETAIL CLASS*
1995 $ 9.81 $0.60 $ 0.72 $(0.57) $ -- $10.56 13.83 $ 1,373 0.97%
PRIOR CLASS
1994 $11.18 $0.53 $(1.04) $(0.52) $(0.34) $ 9.81 (4.75)% $ 23,377 1.01%
RATIO RATIO OF
RATIO OF EXPENSES NET INCOME
OF NET TO AVERAGE TO AVERAGE
INCOME NET ASSETS NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE***
---------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
- --------------------------
SHORT TERM INCOME FUND (5)
- --------------------------
CLASS Y*
1998 5.40% 1.12% 4.82% 66%
1997 5.37 1.05 4.79 99
1996 5.31 1.03 4.79 102
INSTITUTIONAL CLASS*
1995 (1) 5.43% 1.08% 4.98% 40%
CLASS A*
1998 5.15% 1.37% 4.57% 66%
1997 5.18 1.32 4.59 99
1996 5.05 1.25 4.56 102
RETAIL CLASS*
1995 (2) 5.05% 1.33% 4.60% 40%
- ----------------------------
SHORT-INTERMEDIATE BOND FUND
- ----------------------------
CLASS Y**
1998 5.73% 0.83% 5.44% 143%
1997 5.98 0.80 5.67 158
1996 5.80 0.81 5.54 257
1995 5.76 0.84 5.52 405
1994 4.30 0.86 4.02 299
CLASS A**
1998 5.48% 1.08% 5.19% 143%
1997 5.73 1.05 5.42 158
1996 5.51 1.06 5.27 257
1995 5.27 1.09 5.03 405
1994 4.05 1.11 3.77 299
- ----------------------
GOVERNMENT INCOME FUND
- ----------------------
CLASS Y**
1998 6.01% 0.82% 5.91% 78%
1997 6.40 0.85 6.25 120
1996 6.17 0.89 5.92 131
1995 6.53 0.98 6.14 368
1994 4.93 1.00 4.43 157
CLASS A**
1998 5.76% 1.07% 5.66% 78%
1997 6.15 1.10 6.00 120
1996 5.93 1.14 5.67 131
1995 6.25 1.24 5.86 368
1994 4.68 1.25 4.18 157
- ------------
BOND FUND(5)
- ------------
CLASS Y*
1998 6.07% 1.09% 5.59% 125%
1997 6.29 1.04 5.81 210
1996 6.28 0.97 5.86 190
INSTITUTIONAL CLASS*
1995 6.09% 1.12% 5.68% 352%
CLASS A*
1998 5.82% 1.34% 5.34% 125%
1997 6.05 1.29 5.57 210
1996 6.02 1.22 5.61 190
RETAIL CLASS*
1995 6.02% 1.44% 5.55% 352%
PRIOR CLASS
1994 5.07% 1.60% 4.48% 232%
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
55
<PAGE>
FINANCIAL HIGHLIGHTS COREFUND FIXED INCOME FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET
NET ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO
VALUE NET UNREALIZED FROM NET FROM ASSET VALUE END OF EXPENSES
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN(4) (000) NET ASSETS
--------- ---------- ---------------- ------------- ------------- ----------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------
INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------
CLASS Y**
1998 $10.05 $0.43 $0.16 $(0.43) $ -- $10.21 5.98% $ 1,068 0.55%
1997 9.92 0.42 0.13 (0.42) -- 10.05 5.62 993 0.55
1996 9.83 0.37 0.09 (0.37) -- 9.92 4.74 403 0.81
1995 9.68 0.38 0.15 (0.38) -- 9.83 5.58 365 0.82
1994 10.09 0.39 (0.41) (0.39) -- 9.68 (0.27) 1,088 0.63
CLASS A**
1998 $10.05 $0.40 $0.17 $(0.41) $ -- $10.21 5.72% $ 876 0.79%
1997 9.92 0.39 0.13 (0.39) -- 10.05 5.36 959 0.80
1996 9.83 0.35 0.09 (0.35) -- 9.92 4.48 1,015 1.08
1995 9.67 0.35 0.16 (0.35) -- 9.83 5.42 1,027 1.08
1994 10.08 0.37 (0.41) (0.37) -- 9.67 (0.52) 1,311 0.88
- --------------------------------
PENNSYLVANIA MUNICIPAL BOND FUND
- --------------------------------
CLASS Y**
1998 $10.47 $0.53 $0.28 $(0.53) $ -- $10.75 7.83% $13,427 0.08%
1997 10.22 0.54 0.25 (0.54) -- 10.47 7.92 10,171 0.08
1996 10.16 0.55 0.06 (0.55) -- 10.22 6.02 8,864 0.21
1995 9.95 0.51 0.21 (0.51) -- 10.16 7.50 2,272 0.39
1994 (3) 10.00 0.06 (0.05) (0.06) -- 9.95 0.14+ 434 0.42
CLASS A**
1998 $10.47 $0.50 $0.28 $(0.50) $ -- $10.75 7.56% $ 6,099 0.33%
1997 10.22 0.51 0.25 (0.51) -- 10.47 7.65 2,004 0.33
1996 10.16 0.52 0.06 (0.52) -- 10.22 5.76 994 0.46
1995 9.95 0.49 0.21 (0.49) -- 10.16 7.25 317 0.64
1994 (3) 10.00 0.06 (0.05) (0.06) -- 9.95 0.09+ 163 0.67
- ------------------------------
NEW JERSEY MUNICIPAL BOND FUND
- ------------------------------
CLASS Y**
1998 $10.16 $0.52 $0.31 $(0.52) $ -- $10.47 8.27% $ 1,380 0.11%
1997 10.08 0.51 0.15 (0.51) (0.07) 10.16 6.70 1,477 0.21
1996 10.12 0.51 0.02 (0.51) (0.06) 10.08 5.28 1,317 0.37
1995 9.94 0.52 0.18 (0.52) -- 10.12 7.25 1,550 0.42
1994 (3) 10.00 0.06 (0.06) (0.06) -- 9.94 0.01+ 1,432 0.43
CLASS A**
1998 $10.15 $0.49 $0.31 $(0.49) $ -- $10.46 8.00% $ 831 0.36%
1997 10.07 0.48 0.15 (0.48) (0.07) 10.15 6.44 398 0.45
1996 10.12 0.48 0.01 (0.48) (0.06) 10.07 4.93 304 0.60
1995 9.95 0.49 0.17 (0.49) -- 10.12 6.84 24 0.68
1994 (3) 10.00 0.06 (0.05) (0.06) -- 9.95 0.08+ 2 0.68
RATIO RATIO OF
RATIO OF EXPENSES NET INCOME
OF NET TO AVERAGE TO AVERAGE
INCOME NET ASSETS NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE***
---------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
- --------------------------------
INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------
CLASS Y**
1998 4.20% 1.17% 3.58% 23%
1997 4.20 1.02 3.73 22
1996 3.73 1.31 3.23 10
1995 3.91 1.26 3.47 9
1994 3.91 1.17 3.37 43
CLASS A**
1998 3.95% 1.41% 3.33% 23%
1997 3.92 1.23 3.49 22
1996 3.47 1.61 2.94 10
1995 3.65 1.52 3.21 9
1994 3.66 1.42 3.12 43
- --------------------------------
PENNSYLVANIA MUNICIPAL BOND FUND
- --------------------------------
CLASS Y**
1998 4.89% 0.83% 4.14% 48%
1997 5.23 0.83 4.48 39
1996 5.25 0.96 4.50 92
1995 5.26 1.14 4.51 18
1994 (3) 5.09 1.17 4.34 3
CLASS A**
1998 4.64% 1.08% 3.89% 48%
1997 4.99 1.08 4.24 39
1996 4.93 1.21 4.18 92
1995 4.95 1.39 4.20 18
1994 (3) 4.84 1.42 4.09 3
- ------------------------------
NEW JERSEY MUNICIPAL BOND FUND
- ------------------------------
CLASS Y**
1998 4.95% 0.86% 4.20% 4%
1997 5.02 0.96 4.27 19
1996 4.93 1.12 4.18 21
1995 5.21 1.17 4.46 32
1994 (3) 5.07 1.35 4.15 13
CLASS A**
1998 4.70% 1.11% 3.95% 4%
1997 4.81 1.20 4.06 19
1996 4.65 1.35 3.90 21
1995 4.97 1.44 4.21 32
1994 (3) 4.82 1.60 3.90 13
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* ON FEBRUARY 21, 1995, THE SHARES OF THE FUNDS WERE REDESIGNED AS EITHER
RETAIL OR INSTITUTIONAL SHARES. ON THAT DATE, THE FUND'S NET INVESTMENT
INCOME, EXPENSES AND DISTRIBUTIONS FOR THE PERIOD NOVEMBER 1, 1994 THROUGH
FEBRUARY 20, 1995 WERE ALLOCATED TO EACH CLASS OF SHARES. THE BASIS FOR THE
ALLOCATION WAS THE RELATIVE NET ASSETS OF EACH CLASS OF SHARES AS OF
FEBRUARY 21, 1995. THE RESULTS WERE COMBINED WITH THE RESULTS OF OPERATIONS
AND DISTRIBUTIONS FOR EACH APPLICABLE CLASS FOR THE PERIOD FEBRUARY 21, 1995
THROUGH OCTOBER 31, 1995. FOR THE YEAR ENDED OCTOBER 31, 1995, THE FINANCIAL
HIGHLIGHTS' RATIOS OF EXPENSES, NET INVESTMENT INCOME, TOTAL RETURN, AND THE
PER SHARE INVESTMENT ACTIVITIES AND DISTRIBUTIONS REFLECT THIS ALLOCATION.
ADDITIONALLY, ON APRIL 22, 1996 THE CONESTOGA SHORT-TERM INCOME AND BOND
FUNDS WERE ACQUIRED BY COREFUNDS, INC. AT WHICH TIME THE INSTITUTIONAL CLASS
OF SHARES OF THESE FUNDS WERE REDESIGNATED CLASS Y AND THE RETAIL CLASS OF
SHARES OF THESE FUNDS WERE REDESIGNATED CLASS A.
** ON APRIL 22, 1996 THE SERIES A SHARES OF EACH FUND, EXCLUDING THE SHORT TERM
INCOME AND BOND FUNDS, WERE REDESIGNATED CLASS Y AND THE SERIES B SHARES OF
EACH FUND, EXCLUDING THE SHORT TERM INCOME AND BOND FUNDS, WERE REDESIGNATED
CLASS A.
*** FOR THE YEAR ENDED JUNE 30, 1996, TRANSACTIONS RELATING TO THE MERGER WERE
EXCLUDED FROM THE CALCULATION OF THE PORTFOLIO TURNOVER RATE.
+ THIS FIGURE HAS NOT BEEN ANNUALIZED.
1 COMMENCED OPERATIONS MAY 15, 1995. UNLESS OTHERWISE NOTED, ALL RATIOS FOR
THE PERIOD HAVE BEEN ANNUALIZED.
2 COMMENCED OPERATIONS MAY 17, 1995. UNLESS OTHERWISE NOTED, ALL RATIOS FOR
THE PERIOD HAVE BEEN ANNUALIZED.
3 COMMENCED OPERATIONS MAY 16, 1994. UNLESS OTHERWISE NOTED, ALL RATIOS FOR
THE PERIOD HAVE BEEN ANNUALIZED.
4 TOTAL RETURN DOES NOT REFLECT THE SALES LOAD CHARGED ON THE CLASS A SHARES.
ADDITIONALLY, TOTAL RETURN FOR CLASS Y & CLASS A FOR THE SHORT TERM INCOME
AND BOND FUNDS FOR 1996 ARE FOR THE EIGHT MONTH PERIOD ENDED JUNE 30, 1996.
5 THE PER SHARE AMOUNT FOR THESE FUNDS FOR THE YEAR ENDED JUNE 30, 1996
REPRESENTS THE PERIOD FROM NOVEMBER 1, 1995 TO JUNE 30, 1996. ALL PRIOR
YEARS ARE FOR THE PERIODS NOVEMBER 1 TO OCTOBER 31.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
56
<PAGE>
FINANCIAL HIGHLIGHTS COREFUND MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
June 30, 1998
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET RATIO
NET ASSET DISTRIBUTIONS NET ASSETS RATIO OF NET
VALUE NET FROM NET ASSET VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INCOME OF PERIOD RETURN (000) NET ASSETS NET ASSETS
--------- ---------- ------------- ----------- -------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------
TREASURY RESERVE
- ----------------
CLASS Y*
1998 $1.00 $0.05 $(0.05) $1.00 5.12% $659,953 0.55% 5.01%
1997 1.00 0.05 (0.05) 1.00 4.97 835,384 0.51 4.86
1996 1.00 0.05 (0.05) 1.00 5.20 892,562 0.50 5.02
1995 1.00 0.05 (0.05) 1.00 4.98 479,206 0.48 4.91
1994 1.00 0.03 (0.03) 1.00 2.91 484,974 0.48 2.87
CLASS C*
1998 $1.00 $0.05 $(0.05) $1.00 4.86% $ 22,574 0.80% 4.76%
1997 1.00 0.05 (0.05) 1.00 4.71 12,146 0.76 4.61
1996 1.00 0.05 (0.05) 1.00 4.94 19,386 0.75 4.81
1995 1.00 0.05 (0.05) 1.00 4.72 21,612 0.73 4.81
1994 1.00 0.03 (0.03) 1.00 2.65 7,573 0.73 2.62
- ------------
CASH RESERVE
- ------------
CLASS Y*
1998 $1.00 $0.05 $(0.05) $1.00 5.29% $804,302 0.54% 5.17%
1997 1.00 0.05 (0.05) 1.00 5.09 886,251 0.50 4.99
1996 1.00 0.05 (0.05) 1.00 5.26 790,211 0.50 5.09
1995 1.00 0.05 (0.05) 1.00 5.15 510,341 0.48 5.04
1994 1.00 0.03 (0.03) 1.00 3.00 505,273 0.47 2.95
CLASS C*
1998 $1.00 $0.05 $(0.05) $1.00 5.03% $ 80,153 0.79% 4.92%
1997 1.00 0.05 (0.05) 1.00 4.83 27,693 0.75 4.74
1996 1.00 0.05 (0.05) 1.00 5.00 19,736 0.75 4.86
1995 1.00 0.05 (0.05) 1.00 4.89 17,583 0.73 4.86
1994 1.00 0.03 (0.03) 1.00 2.74 11,451 0.72 2.70
CLASS B
1998(1) $1.00 $0.03 $(0.03) $1.00 2.58%+ $ 97 1.54% 4.17%
- ----------------
TAX-FREE RESERVE
- ----------------
CLASS Y*
1998 $1.00 $0.03 $(0.03) $1.00 3.15% $124,921 0.56% 3.09%
1997 1.00 0.03 (0.03) 1.00 3.08 119,579 0.50 3.07
1996 1.00 0.03 (0.03) 1.00 3.20 104,196 0.48 3.14
1995 1.00 0.03 (0.03) 1.00 3.12 62,756 0.48 3.09
1994 1.00 0.02 (0.02) 1.00 2.03 79,384 0.49 2.00
CLASS C*
1998 $1.00 $0.03 $(0.03) $1.00 2.88% $ 15,952 0.81% 2.84%
1997 1.00 0.03 (0.03) 1.00 2.83 3,202 0.75 2.82
1996 1.00 0.03 (0.03) 1.00 2.95 2,850 0.73 2.94
1995 1.00 0.03 (0.03) 1.00 2.86 1,524 0.73 2.80
1994 1.00 0.02 (0.02) 1.00 1.78 2,708 0.74 1.75
RATIO RATIO OF
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS
(EXCLUDING (EXCLUDING
WAIVERS) WAIVERS)
----------- -----------
<S> <C> <C>
- ----------------
TREASURY RESERVE
- ----------------
CLASS Y*
1998 0.74% 4.82%
1997 0.71 4.66
1996 0.77 4.75
1995 0.85 4.54
1994 0.86 2.49
CLASS C*
1998 0.99% 4.57%
1997 0.96 4.41
1996 1.03 4.53
1995 1.10 4.44
1994 1.11 2.24
- ------------
CASH RESERVE
- ------------
CLASS Y*
1998 0.73% 4.98%
1997 0.70 4.79
1996 0.78 4.81
1995 0.85 4.67
1994 0.85 2.57
CLASS C*
1998 0.98% 4.73%
1997 0.95 4.54
1996 1.03 4.58
1995 1.10 4.49
1994 1.10 2.32
CLASS B
1998(1) 1.73% 3.98%
- ----------------
TAX-FREE RESERVE
- ----------------
CLASS Y*
1998 0.75% 2.90%
1997 0.70 2.87
1996 0.76 2.86
1995 0.85 2.72
1994 0.87 1.62
CLASS C*
1998 1.00% 2.65%
1997 0.95 2.62
1996 1.02 2.65
1995 1.10 2.43
1994 1.12 1.37
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* ON APRIL 22, 1996, SERIES A SHARES WERE REDESIGNATED CLASS Y AND SERIES B
SHARES WERE REDESIGNATED CLASS C.
+ RETURNS ARE FOR THE PERIOD INDICATED AND
HAVE NOT BEEN ANNUALIZED.
1 COMMENCED OPERATIONS NOVEMBER 18, 1997. RATIOS FOR
THE PERIOD HAVE BEEN ANNUALIZED.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
57
<PAGE>
NOTES TO FINANCIAL STATEMENTS COREFUND
- --------------------------------------------------------------------------------
June 30, 1998
1. ORGANIZATION
The CoreFund Equity Index Fund, Core Equity Fund, Growth Equity Fund,
Special Equity Fund, International Growth Fund, Balanced Fund (the Equity
Funds), Short Term Income Fund, Short-Intermediate Bond Fund, Government Income
Fund, Bond Fund, Intermediate Municipal Bond Fund, Pennsylvania Municipal Bond
Fund, New Jersey Municipal Bond Fund (the Fixed Income Funds), Treasury Reserve,
Cash 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
comprised of 20 separate portfolios (the "Funds"):
EQUITY PORTFOLIOS: MONEY MARKET PORTFOLIOS:
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 PORTFOLIOS:
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 of the Global Bond Fund, Elite Cash Reserve, Elite
Treasury Reserve and Elite Tax-Free Reserve 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 Funds' 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 Funds.
SECURITY VALUATION--Investment securities of the Equity and Fixed Income
Funds that 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 are maintained in
U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the
following bases:
[bullet] market value of investment securities, assets and liabilities at
the current rate of exchange; and
[bullet] purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the
respective dates of such transactions.
The International Growth Fund does not isolate the portion of gains or
losses on investments in equity securities that 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 reports 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.
58
<PAGE>
NOTES TO FINANCIAL STATEMENTS COREFUND
- --------------------------------------------------------------------------------
June 30, 1998
FORWARD FOREIGN CURRENCY CONTRACTS--The International Growth Fund enters
into forward foreign currency contracts as hedges against either specific
transactions or portfolio positions. The aggregate principal amounts of the
contracts are not recorded since the Fund intends 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 Fund realizes gains or losses at the time forward contracts are
settled. Financial future contracts are valued at the settlement price
established each day by the board of trade on an 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 the ex-dividend
date.
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 collateral by
the Fund may be delayed or limited.
EXPENSES--Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses of the Company are
pro-rated 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 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.
DISTRIBUTION TO SHAREHOLDERS--The Equity Index Fund, Core Equity Fund,
Growth Equity Fund, Special Equity Fund and Balanced Fund declare and pay
dividends on a quarterly basis. The International Growth Fund declares and pays
dividends periodically. Such dividends are reinvested in additional shares
unless otherwise requested. The Short Term Income Fund, Short-Intermediate Bond
Fund, Government Income Fund, Bond Fund, Intermediate Municipal Bond Fund,
Pennsylvania Municipal Bond Fund, New Jersey Municipal Bond Fund, Treasury
Reserve, Cash 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 Fund are distributed to its shareholders at least annually.
Distributions from net investment income and net realized capital gains are
determined in accordance with U.S. Federal income tax regulations, which may
differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature. To the extent these differences are permanent, they are charged or
credited to paid in capital in the period that the difference arises.
Accordingly, for the International Growth Fund as of June 30, 1998,
$(593,000) was reclassified from accumulated net realized gain (loss)on
investments to accumulated net investment income.
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 tax is required.
OTHER--Organizational costs incurred with the start up of the Balanced
Fund, Government Income Fund, Short Term Income Fund, Intermediate Municipal
Bond Fund, Pennsylvania Municipal Bond Fund and New Jersey Municipal Bond Fund
are being amortized on a straight line basis over a maximum period of sixty
months. First Union Corporation reimbursed the Funds for any remaining
unamortized deferred organization costs as of June 30, 1998, approximately
$9,000.
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
The Company has entered into an investment advisory agreement with
CoreStates Investment Advisers, Inc. ("CSIA") to provide investment advisory
services to each Fund. For its services CSIA receives a fee based on the annual
average daily net assets of each Fund as shown in the following table:
59
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS COREFUND
- ---------------------------------------------------------------------------------------------------------------------------
June 30, 1998
ADVISER INVESTMENT ADVISORY ADVISER INVESTMENT ADVISORY
FUND FEE AGREEMENT DATE FUND FEE AGREEMENT DATE
- -------------------- ------- ------------------- ----------------------- ------ -------------------
<S> <C> <C> <C> <C> <C> <C>
Equity Index 0.40% April 12, 1996 Short Term Income 0.74% April 12, 1996
Core Equity 0.74 April 12, 1996 Short-Intermediate Bond 0.50 April 12, 1996
Growth Equity 0.75 April 12, 1996 Government Income 0.50 April 12, 1996
Special Equity 1.50 April 12, 1996 Bond 0.74 April 12, 1996
International Growth 0.80 April 12, 1996 Intermediate Municipal
Balanced 0.70 April 12, 1996 Bond 0.50 April 12, 1996
Pennsylvania Municipal
Treasury Reserve 0.40 April 12, 1996 Bond 0.50 April 12, 1996
Cash Reserve 0.40 April 12, 1996 New Jersey Municipal
Tax-Free Reserve 0.40 April 12, 1996 Bond 0.50 April 12, 1996
</TABLE>
Advisory fees are computed daily and paid monthly for all Funds.
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 (now First Union) 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 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.
Sub-Advisory services are provided to the CoreStates Advisers for the
International Growth Fund by Martin Currie, Inc. and Aberdeen Managers (The
"Sub-Advisers"). CoreStates Advisers is responsible for the supervision and
payment of fees to the Sub-Advisers 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 Fund Resources ("SFR") 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 net assets of the Funds. SFR voluntarily waives 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 Financial Services ("SFS"), a wholly owned
subsidiary of SEI, 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 A, C and 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 Class
A and C Portfolio and 1.00% of the daily net assets of each Class B Portfolio.
The Company has also adopted a Shareholder Servicing Plan for those Funds
offering Class B shares. The Shareholder Servicing Plan provides for the payment
by the Company to the Distributor of up to 0.25% of the daily net assets of each
Class B Portfolio to which the Plan is applicable. The Distributor is authorized
to use these fees as compensation for its distribution-related services and as
payment to certain securities broker/dealers and financial institutions that
enter into shareholder servicing agreements or broker agreements with the
Distributor. The Funds paid approximately $218,874 to affiliated brokers for
commissions earned on the sales of the shares of the Funds for the year ended
June 30, 1998.
Certain officers of the Company are also officers of the Administrator.
Such officers are paid no fees by the Funds.
The Funds have paid legal fees in the amount of $151,000 to a law firm in
which the Secretary of the Company is a partner.
A contingent Deferred Sales Charge (CDSC) is imposed on redemptions made in
the Class B shares. The CDSC varies depending on the number of years from the
time of payment for the purchase of Class B shares until the redemption of such
shares.
60
<PAGE>
NOTES TO FINANCIAL STATEMENTS COREFUND
- --------------------------------------------------------------------------------
June 30, 1998
Contingent Deferred Sales
Year Charges as a Percentage
Since of Dollar Amount
Purchase Subject to Charge
---------- ------------------------
First 5.00%
Second 4.00%
Third 3.00%
Fourth 2.00%
Fifth 1.00%
Sixth None
Seventh Convert to Class A Shares
5. INVESTMENT TRANSACTIONS
During the year ended June 30, 1998, 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>
Equity Index Fund $ -- $ 48,452 $ 48,452 $ -- $ 33,354 $ 33,354
Core Equity Fund -- 345,948 345,948 -- 404,853 404,853
Growth Equity Fund -- 147,268 147,268 -- 158,202 158,202
Special Equity Fund -- 48,645 48,645 -- 57,133 57,133
International Growth Fund -- 87,180 87,180 -- 85,894 85,894
Balanced Fund -- 72,482 72,482 8,051 74,382 82,433
Short Term Income Fund 5,518 10,891 16,409 11,593 9,265 20,858
Short-Intermediate Bond Fund 135,315 85,350 220,665 176,143 61,008 237,151
Government Income Fund 19,676 -- 19,676 17,573 -- 17,573
Bond Fund 140,082 61,393 201,475 173,899 57,408 231,307
Intermediate Municipal Fund -- 424 424 -- 420 420
Pennsylvania Municipal Bond Fund -- 13,848 13,848 -- 7,627 7,627
New Jersey Municipal Bond Fund -- 461 461 -- 76 76
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
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 Funds 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>
Short Term Income Fund $ 66,067 $ -- $ -- $ -- $ 66,067 $ --
Short-Intermediate Bond Fund 1,386,417 -- -- 157,449 1,228,968 --
Intermediate Municipal Bond Fund 82,791 -- 41,918 34,827 2,413 3,633
New Jersey Municipal Bond Fund 4,033 -- -- -- -- 4,033
Treasury Reserve 124 -- -- -- 124 --
Cash Reserve 162,806 130,422 23,362 9,022 -- --
Tax-Free Reserve 54,771 5,273 44,981 4,127 -- 390
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
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.
At June 30, 1998 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 June 30, 1998 for each Fund is as
follows:
61
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS COREFUND
- --------------------------------------------------------------------------------------------------
June 30, 1998
- --------------------------------------------------------------------------------------------------
------------ ------------ --------
AGGREGATE AGGREGATE
GROSS GROSS
AGGREGATE GROSS UNREALIZED GAIN (LOSS) (000) APPRECIATION DEPRECIATION NET
------------ ------------ --------
<S> <C> <C> <C>
Equity Index Fund $163,256 $ 3,704 $159,552
Core Equity Fund 153,942 32,066 121,876
Growth Equity Fund 65,418 2,980 62,438
Special Equity Fund 17,117 11,251 5,866
International Growth Fund 40,773 10,674 30,099
Balanced Fund 28,871 1,710 27,161
Short Term Income Fund 89 10 79
Short-Intermediate Bond Fund 1,453 149 1,304
Government Income Fund 436 5 431
Bond Fund 3,572 171 3,401
Intermediate Municipal Bond Fund 53 -- 53
Pennsylvania Municipal Bond Fund 533 27 506
New Jersey Municipal Bond Fund 105 -- 105
- --------------------------------------------------------------------------------------------------
</TABLE>
6. FORWARD FOREIGN CURRENCY CONTRACTS
The International Growth Fund enters 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.
At June 30, 1998, the International Growth Fund had unrealized gains on
closed but unsettled forward foreign currency contracts of $801,491 scheduled to
settle on July 8, 1998.
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 that
include revenue bonds, tax exempt commercial paper, tax and revenue anticipation
notes, and general obligation bonds. At June 30, 1998, the percentage of
portfolio investments by each revenue source was as follows:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
------------ ------------ ----------- --------
INTERMEDIATE PENNSYLVANIA NEW JERSEY
MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND TAX-FREE
FUND FUND FUND RESERVE
------------ ------------ ----------- --------
REVENUE BONDS:
<S> <C> <C> <C> <C>
Education Bonds 17% 19% 15% 10%
Health Care Bonds 3 15 5 6
Transportation Bonds 11 3 7 6
Utility Bonds 13 16 16 7
Housing Bonds -- 3 -- 2
Pollution Control Bonds -- -- -- 17
Industrial Development Bonds 5 10 -- 5
Public Facility Bonds -- 1 3 3
Other 12 4 4 2
GENERAL OBLIGATIONS 39 26 50 8
TAX EXEMPT COMMERCIAL PAPER -- -- -- 28
TAX AND REVENUE ANTICIPATION NOTES -- -- -- 5
TAX ANTICIPATION NOTES -- 3 -- 1
---- ---- ---- ----
100% 100% 100% 100%
- ------------------------------------------------------------------------------------------------
</TABLE>
62
<PAGE>
NOTES TO FINANCIAL STATEMENTS COREFUND
- --------------------------------------------------------------------------------
June 30, 1998
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 bond insurance reduces the risk of loss due to default by the 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 June 30, 1998, the percentage of securities with credit
enhancements are as follows:
- --------------------------------------------------------------------------------
------- ---------
LETTERS
OF BOND
CREDIT INSURANCE
------- ---------
Intermediate Municipal Bond Fund -- 73%
Pennsylvania Municipal Bond Fund -- 62
New Jersey Municipal Bond Fund -- 38
Tax-Free Reserve 72% 6
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
8. SHARE TRANSACTIONS (000):
The following are the share transactions for the year ended June 30, 1998.
------ ------ ------ ------ ------------- -------- ---------- ---------- --------
EQUITY CORE GROWTH SPECIAL INTERNATIONAL
INDEX EQUITY EQUITY EQUITY GROWTH BALANCED TREASURY CASH TAX-FREE
FUND FUND(1) FUND FUND FUND FUND RESERVE RESERVE RESERVE
------ ------ ------ ------ ------------- -------- ---------- ---------- --------
CLASS Y
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares issued 1,200 3,703 3,008 1,101 5,595 1,646 1,985,423 2,037,759 291,061
Shares issued in lieu
of cash distributions 255 3,199 639 816 543 508 2,577 2,932 193
Shares redeemed (1,084) (6,152) (2,920) (1,727) (5,536) (1,944) (2,163,427) (2,122,644) (285,844)
------ ------ ------ ------ ------ ------ ---------- ---------- --------
Net increase (decrease) 371 750 727 190 602 210 (175,427) (81,953) 5,410
====== ====== ====== ====== ====== ====== ========== ========== ========
CLASS A/C
Shares issued 161 179 67 72 29 167 83,009 248,575 79,690
Shares issued in lieu
of cash distributions 10 120 25 34 9 27 756 3,375 374
Shares redeemed (34) (144) (58) (48) (32) (80) (73,336) (199,480) (67,310)
------ ------ ------ ------ ------ ------ ---------- ---------- --------
Net increase 137 155 34 58 4 114 10,429 52,470 12,754
====== ====== ====== ====== ====== ====== ========== ========== ========
CLASS B
Shares issued 42 18 9 21 4 61 -- 152 --
Shares issued in lieu
of cash distributions 1 -- -- 1 -- 2 -- 2 --
Shares redeemed (1) (2) -- -- -- -- -- (57) --
------ ------ ------ ------ ------ ------ ---------- ---------- --------
Net increase 42 16 9 22 4 63 -- 97 --
====== ====== ====== ====== ====== ====== ========== ========== ========
TOTAL SHARE ACTIVITY
FOR PERIOD 550 922 770 270 610 387 (164,998) (29,386) 18,164
====== ====== ====== ====== ====== ====== ========== ========== ========
<FN>
(1) THIS FUND WAS FORMERLY KNOWN AS THE EQUITY FUND.
</FN>
</TABLE>
63
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS COREFUND
- ---------------------------------------------------------------------------------------------------------------------------
June 30, 1998
---------- ------------ ---------- -------- ------------ ------------ ----------
SHORT TERM SHORT- GOVERNMENT INTERMEDIATE PENNSYLVANIA NEW JERSEY
INCOME INTERMEDIATE INCOME BOND MUNICIPAL MUNICIPAL MUNICIPAL
FUND BOND FUND FUND FUND BOND FUND BOND FUND BOND FUND
---------- ------------ ---------- -------- ------------ ------------ ----------
CLASS Y
<S> <C> <C> <C> <C> <C> <C> <C>
Shares issued 983 3,994 832 2,311 37 458 18
Shares issued in lieu
of cash distributions 173 883 71 897 2 23 3
Shares repurchased (1,563) (3,920) (437) (5,663) (33) (204) (35)
------ ------ ---- ------ --- ---- ---
Net increase (decrease) (407) 957 466 (2,455) 6 277 (14)
====== ====== ==== ====== === ==== ===
CLASS A
Shares issued 7 33 49 46 7 400 46
Shares issued in lieu
of cash distributions 3 12 8 9 3 16 2
Shares repurchased (4) (67) (64) (51) (20) (40) (8)
------ ------ ---- ------ --- ---- ---
Net increase (decrease) 6 (22) (7) 4 (10) 376 40
====== ====== ==== ====== === ==== ===
TOTAL SHARE ACTIVITY
FOR PERIOD (401) 935 459 (2,451) (4) 653 26
====== ====== ==== ====== === ==== ===
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
9. 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 July 17, 1998, the shareholders of the CoreFunds voted to
approve the Plan.
64
<PAGE>
NOTES TO FINANCIAL STATEMENTS COREFUND
- --------------------------------------------------------------------------------
June 30, 1998
A special meeting of the CoreFunds 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
------------ ---------- ----------
EQUITY INDEX FUND
<S> <C> <C> <C> <C>
Item #1 FOR 6,096,676.700 95.90% 85.55%
AGAINST 28,341.427 0.45% 0.40%
ABSTAIN 6,368.543 0.10% 0.09%
BROKER NON-VOTE 225,768.000 3.55% 3.17%
Item #2 FOR 6,322,803.884 99.46% 88.72%
AGAINST 29,276.243 0.46% 0.41%
ABSTAIN 5,072.543 0.08% 0.07%
BROKER NON-VOTE -- 0.00% 0.00%
CORE EQUITY FUND
Item #1 FOR 23,623,481.878 98.60% 88.85%
AGAINST 21,878.274 0.09% 0.08%
ABSTAIN 5,187.377 0.02% 0.02%
BROKER NON-VOTE 309,569.000 1.29% 1.16%
Item #2 FOR 23,921,173.845 99.84% 89.97%
AGAINST 33,294.307 0.14% 0.13%
ABSTAIN 5,648.377 0.02% 0.02%
BROKER NON-VOTE -- 0.00% 0.00%
GROWTH EQUITY FUND
Item #1 FOR 9,951,151.254 97.91% 92.94%
AGAINST 39,187.769 0.39% 0.37%
ABSTAIN 2,521.369 0.02% 0.02%
BROKER NON-VOTE 170.627.500 1.68% 1.59%
Item #2 FOR 10,122,457.696 99.60% 94.54%
AGAINST 38,247.352 0.38% 0.36%
ABSTAIN 2,782.344 0.03% 0.03%
BROKER NON-VOTE -- 0.00% 0.00%
</TABLE>
65
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS COREFUND
- ---------------------------------------------------------------------------------------------------------------------------
June 30, 1998
SHARES VOTED % OF VOTED % OF TOTAL
------------ ---------- ----------
SPECIAL EQUITY FUND
<S> <C> <C> <C> <C>
Item #1 FOR 4,658,005.373 97.37% 66.23%
AGAINST 9,336.024 0.20% 0.13%
ABSTAIN 510.000 0.01% 0.01%
BROKER NON-VOTE 116,068.500 2.43% 1.65%
Item #2 FOR 4,774,082.373 99.79% 67.88%
AGAINST 9,328.024 0.19% 0.13%
ABSTAIN 510.000 0.01% 0.01%
BROKER NON-VOTE -- 0.00% 0.00%
INTERNATIONAL GROWTH FUND
Item #1 FOR 10,703,225.019 99.16% 90.25%
AGAINST 8,045.295 0.07% 0.07%
ABSTAIN 1,925.954 0.02% 0.02%
BROKER NON-VOTE 80,683.000 0.75% 0.68%
Item #2 FOR 10,783,530.019 99.90% 90.92%
AGAINST 8,423.295 0.08% 0.07%
ABSTAIN 1,925.954 0.02% 0.02%
BROKER NON-VOTE -- 0.00% 0.00%
BALANCED FUND
Item #1 FOR 8,269,835.339 97.31% 91.18%
AGAINST 6,319.206 0.07% 0.07%
ABSTAIN 9,725.390 0.11% 0.11%
BROKER NON-VOTE 212,182.000 2.50% 2.34%
Item #2 FOR 8,487,837.201 99.88% 93.59%
AGAINST 6,458.427 0.08% 0.07%
ABSTAIN 3,766.307 0.04% 0.04%
BROKER NON-VOTE -- 0.00% 0.00%
SHORT TERM INCOME FUND
Item #1 FOR 3,161,499.161 99.87% 95.48%
AGAINST -- 0.00% 0.00%
ABSTAIN -- 0.00% 0.00%
BROKER NON-VOTE 3,966.000 0.13% 0.12%
Item #2 FOR 3,165,465.161 100.00% 95.60%
AGAINST -- 0.00% 0.00%
ABSTAIN -- 0.00% 0.00%
BROKER NON-VOTE -- 0.00% 0.00%
</TABLE>
66
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS COREFUND
- ---------------------------------------------------------------------------------------------------------------------------
June 30, 1998
SHARES VOTED % OF VOTED % OF TOTAL
------------ ---------- ----------
SHORT-INTERMEDIATE BOND FUND
<S> <C> <C> <C> <C>
Item #1 FOR 15,475,909.263 98.97% 87.62%
AGAINST 25,108.524 0.16% 0.14%
ABSTAIN 6,323.766 0.04% 0.04%
BROKER NON-VOTE 130,190.000 0.83% 0.74%
Item #2 FOR 15,593,369.263 99.72% 88.28%
AGAINST 37,838.524 0.24% 0.21%
ABSTAIN 6,323.766 0.04% 0.04%
BROKER NON-VOTE -- 0.00% 0.00%
GOVERNMENT INCOME FUND
Item #1 FOR 2,277,596.640 95.82% 87.54%
AGAINST 7,078.000 0.30% 0.27%
ABSTAIN 3,840.329 0.16% 0.15%
BROKER NON-VOTE 88,387.000 3.72% 3.40%
Item #2 FOR 2,369,823.969 99.70% 91.09%
AGAINST 7,078.000 0.30% 0.27%
ABSTAIN -- 0.00% 0.00%
BROKER NON-VOTE -- 0.00% 0.00%
BOND FUND
Item #1 FOR 15,189,389.801 99.66% 93.20%
AGAINST 7,298.783 0.05% 0.04%
ABSTAIN 5,622.608 0.04% 0.03%
BROKER NON-VOTE 38,755.500 0.25% 0.24%
Item #2 FOR 15,213,484.801 99.82% 93.35%
AGAINST 21,625.783 0.14% 0.13%
ABSTAIN 5,955.608 0.04% 0.04%
BROKER NON-VOTE -- 0.00% 0.00%
INTERMEDIATE MUNICIPAL BOND FUND
Item #1 FOR 129,489.185 80.11% 66.03%
AGAINST 1,086.000 0.67% 0.55%
ABSTAIN -- 0.00% 0.00%
BROKER NON-VOTE 31,064.500 19.22% 15.84%
Item #2 FOR 159,280.185 98.54% 81.22%
AGAINST 1,086.000 0.67% 0.55%
ABSTAIN 1,273.000 0.79% 0.65%
BROKER NON-VOTE -- 0.00% 0.00%
</TABLE>
67
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS COREFUND
- ---------------------------------------------------------------------------------------------------------------------------
June 30, 1998
SHARES VOTED % OF VOTED % OF TOTAL
------------ ---------- ----------
PENNSYLVANIA MUNICIPAL BOND FUND
<S> <C> <C> <C> <C>
Item #1 FOR 1,195,150.534 91.45% 67.06%
AGAINST -- 0.00% 0.00%
ABSTAIN 3,311.000 0.25% 0.19%
BROKER NON-VOTE 108,433.000 8.30% 6.08%
Item #2 FOR 1,303,583.534 99.75% 73.14%
AGAINST -- 0.00% 0.00%
ABSTAIN 3,311.000 0.25% 0.19%
BROKER NON-VOTE -- 0.00% 0.00%
NEW JERSEY MUNICIPAL BOND FUND
Item #1 FOR 173,842.681 91.31% 82.53%
AGAINST -- 0.00% 0.00%
ABSTAIN -- 0.00% 0.00%
BROKER NON-VOTE 16,552.000 8.69% 7.86%
Item #2 FOR 190,394.681 100.00% 90.39%
AGAINST -- 0.00% 0.00%
ABSTAIN -- 0.00% 0.00%
BROKER NON-VOTE -- 0.00% 0.00%
TREASURY RESERVE
Item #1 FOR 681,260,418.627 98.37% 95.45%
AGAINST 9,642,980.531 1.39% 1.35%
ABSTAIN 1,437,533.196 0.21% 0.20%
BROKER NON-VOTE 227,166.000 0.03% 0.03%
Item #2 FOR 680,059,044.356 98.19% 95.28%
AGAINST 8,870,534.962 1.28% 1.24%
ABSTAIN 3,638,519.036 0.53% 0.51%
BROKER NON-VOTE -- 0.00% 0.00%
CASH RESERVE
Item #1 FOR 471,982,866.312 95.36% 53.10%
AGAINST 20,546,327.066 4.15% 2.31%
ABSTAIN 1,290,127.598 0.26% 0.15%
BROKER NON-VOTE 1,148,573.500 0.23% 0.13%
Item #2 FOR 469,729,451.899 94.90% 52.84%
AGAINST 19,888,798.208 4.02% 2.24%
ABSTAIN 5,349,644.869 1.08% 0.60%
BROKER NON-VOTE -- 0.00% 0.00%
68
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS COREFUND
- ---------------------------------------------------------------------------------------------------------------------------
June 30, 1998
SHARES VOTED % OF VOTED % OF TOTAL
------------ ---------- ----------
TAX-FREE RESERVE
<S> <C> <C> <C> <C>
Item #1 FOR 126,285,899.439 99.57% 80.32%
AGAINST 274,951.559 0.22% 0.17%
ABSTAIN 202,249.569 0.16% 0.13%
BROKER NON-VOTE 65,602.000 0.05% 0.04%
Item #2 FOR 126,497,978.609 99.74% 80.45%
AGAINST 274,951.559 0.22% 0.17%
ABSTAIN 55,772.399 0.04% 0.04%
BROKER NON-VOTE -- 0.00% 0.00%
</TABLE>
Additionally, the shareholders of International Growth Fund voted on July
17, 1998 to
(1) approve an Interim Sub-Advisory Agreement between CSIA and Martin
Currie, Inc. from April 30, 1998 to the date the reorganization is
consummated, and
(2) approve an Interim Sub-Advisory Agreement between CSIA and Aberdeen
Fund Managers, Inc. from April 30, 1998 to the date the
reorganization is consummated.
<TABLE>
<CAPTION>
The results are as follows:
SHARES VOTED % OF VOTED % OF TOTAL
------------ ---------- ----------
INTERNATIONAL GROWTH FUND
<S> <C> <C> <C> <C>
Item #1 FOR 10,783,327.019 99.90% 90.92%
AGAINST 8,626.295 0.08% 0.07%
ABSTAIN 1,925.954 0.02% 0.02%
BROKER NON-VOTE -- 0.00% 0.00%
Item #2 FOR 10,782,934.895 99.90% 90.92%
AGAINST 8,626.295 0.08% 0.07%
ABSTAIN 2,318.078 0.02% 0.02%
BROKER NON-VOTE -- 0.00% 0.00%
</TABLE>
69
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Board of Directors and Shareholders
CoreFunds, Inc.
We have audited the accompanying statements of net assets of the Equity Index
Fund, Core Equity Fund, Growth Equity Fund, Special Equity Fund, International
Growth Fund, Balanced Fund, Short Term Income Fund, Short-Intermediate Bond
Fund, Government Income Fund, Bond Fund, Intermediate Municipal Bond Fund,
Pennsylvania Municipal Bond Fund, New Jersey Municipal Bond Fund, Treasury
Reserve, Cash Reserve, and Tax-Free Reserve of CoreFunds, Inc. (the "Funds") as
of June 30, 1998, and the related statements of operations for the year then
ended and the statements of changes in net assets for each of the two years in
the period then ended. We have also audited the financial highlights for each of
the periods presented herein for the Equity Index Fund, Growth Equity Fund,
International Growth Fund, Balanced Fund, Short-Intermediate Bond Fund,
Government Income Fund, Intermediate Municipal Bond Fund,Pennsylvania Municipal
Bond Fund, New Jersey Municipal Bond Fund, Treasury Reserve, Cash Reserve, and
Tax-Free Reserve, and for the periods ended June 30, 1996 through June 30, 1998
presented herein for the Core Equity Fund, Special Equity Fund, Short Term
Income Fund, and Bond Fund. 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. The financial highlights for the periods presented through
October 31, 1995 for the Core Equity Fund, Special Equity Fund, Short Term
Income Fund, and Bond Fund were audited by other auditors whose report thereon
dated December 8, 1995 expressed an unqualified opinion on those statements and
financial highlights.
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, the financial highlights for each of the periods
presented herein for the Equity Index Fund, Growth Equity Fund, International
Growth Fund, Balanced Fund, Short-Intermediate Bond Fund, Government Income
Fund, Intermediate Municipal Bond Fund, Pennsylvania Municipal Bond Fund, New
Jersey Municipal Bond Fund, Treasury Reserve, Cash Reserve, and Tax-Free
Reserve, and the financial highlights for the periods ended June 30, 1996
through June 30, 1998 presented herein for the Core Equity Fund,Special Equity
Fund, Short Term Income Fund, and Bond Fund, in conformity with generally
accepted accounting principles.
/S/SIGNATURE
ERNST & YOUNG LLP
Philadelphia, Pennsylvania
August 25, 1998
70
<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-044-06
