CRESTFUNDS,(REGISTRATION MARK) INC.
SEMI-ANNUAL
REPORT.
MAY 31, 1996
CASH RESERVE FUND
U.S. TREASURY MONEY FUND
TAX FREE MONEY FUND
LIMITED TERM BOND FUND
INTERMEDIATE BOND FUND
GOVERNMENT BOND FUND
VIRGINIA INTERMEDIATE MUNICIPAL
BOND FUND
VIRGINIA MUNICIPAL BOND FUND
MARYLAND MUNICIPAL BOND FUND
VALUE FUND
CAPITAL APPRECIATION FUND
SPECIAL EQUITY FUND
<PAGE>
CRESTFUNDS, INC.(REGISTRATION MARK)
DEAR CRESTFUNDS SHAREHOLDER:
The six months ending May 31, 1996, was a good period for the stock market
in general, but with interest rates rising, the fixed income markets showed
negative returns. The economy, which showed signs of sluggishness at the end of
1995, has proven to be surprisingly resilient. This has increased concerns about
inflation and the fear by investors that the Federal Reserve may increase
interest rates by summer's end.
THE ECONOMIC ENVIRONMENT
The economy appeared to be slowing to the point of a recession in the fourth
quarter of 1995 and through January, 1996. Weak growth was exacerbated
by two temporary factors: the blizzards of '96 on the east coast and the federal
government shutdowns. In addition, as we had mentioned last year at this time,
there had also been an inventory imbalance when producers had more goods than
the public was willing to consume.
The temporary negative effects of the government shutdown, the oppressive
winter, and the earlier inventory imbalances ended. Moreover, declines in
mortgage rates last year provided a boost to the housing and automobile markets.
As a result, the economy grew at a very healthy pace during the first half of
the year. The economic expansion should continue during the second half of the
year, although at a slightly slower pace. Consumer confidence and employment
levels are consistent with moderate growth.
THE ECONOMIC OUTLOOK
We expect that the economy grew at a brisk 3.5%-4% pace during the second
quarter. While we believe the pace of growth to slow somewhat during the second
half of the year, our fear is that the pace of growth will not slow sufficiently
to prevent a moderate pickup in the rate of inflation. While the Federal Reserve
has avoided a sharp reversal of its accommodative policy early in the year, a
relatively low unemployment rate and continued wage increases could force a
change in policy in favor of higher short-term rates.
Our outlook for the rest of the year is for economic growth and inflation to
slow under the weight of rising debt burdens, weaker corporate profits and
higher interest rates. This is likely to produce a slower growth-lower inflation
economy. Ultimately we believe this will create a more positive environment for
financial assets.
THE FINANCIAL MARKETS
The early months of 1996 have seen the continued surge of the equity markets.
During this time, volatility in the interest rate environment had an adverse
effect on the bond markets, particularly from January through March of 1996. The
Standard & Poor's 500 Index produced an 11.80% return over the six month period
ending May 31, 1996. The bond market, feeling the effects of higher interest
rates, declined by 0.22% as measured by the Lehman Government/Corporate
Intermediate Index over the same period. The taxable Lipper Money Market
Objective average was 2.41% over the six months ending May 31, 1996.
We believe that further moderate increases in longer term interest rates are
still possible in the short run due to the economic environment outlined above.
A rise in longer term bond yields above 7% could contribute to weaker stock
prices. However, we believe that bond yields should decline slightly before
year-end as higher interest rates and heavy consumer debt contribute to slower
investment and consumer spending. Recent weakness in many industrial commodity
prices, technology stock prices and other economically sensitive
stock prices appear to support this view.
<PAGE>
The stock market has been flourishing -- a result of the record stream of equity
mutual fund cash inflows. Still, signs of a slowdown in corporate earnings have
become more evident. We continue to look for undervalued securities with an
emphasis on corporations that are undergoing restructuring, thus capturing
benefits which are independent of economic or industry specific conditions.
CRESTFUNDS FAMILY EXPANDED
In working hard to meet the needs of our client base, we have expanded our
tax-exempt bond fund offering to include the new Maryland Municipal Bond Fund.
This Fund was introduced in March 1996, and is a municipal bond fund, designed
to minimize federal, state and local taxes for Maryland residents.
We thank you for the confidence you have placed in us, and we encourage you to
let us know how we can better serve you.
Sincerely,
THOMAS D. HOGAN
CHAIRMAN
Capitoline Investment Services Incorporated
A wholly-owned subsidiary of Crestar Bank
July, 1996
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
CASH RESERVE FUND
Face
Amount Value
(000) (000)
-------- --------
COMMERCIAL PAPER (21.4%)
AES Shady Point
5.330%, 07/10/96 ......................... $ 27,500 $ 27,341
J.P. Morgan
5.000%, 09/03/96 ......................... 15,000 14,804
McCormick
5.550%, 07/02/96 ......................... 5,000 4,976
4.875%, 08/12/96 ......................... 8,000 7,922
NationsBank
4.960%, 06/14/96 ......................... 10,000 9,982
Strategic Asset Funding
5.270%, 06/03/96 ......................... 8,000 7,998
5.180%, 06/28/96 ......................... 5,000 4,981
SunTrust Bank
5.020%, 07/12/96 ......................... 20,000 19,886
Svenska Handelsbanken
4.900%, 08/06/96 ......................... 20,000 19,820
Vehicle Services
5.360%, 06/10/96 ......................... 5,500 5,493
- -------------------------------------------------------------------
Total Commercial Paper
(Cost $123,202,422) .................. 123,203
- -------------------------------------------------------------------
CERTIFICATES OF DEPOSIT (14.6%)
Bank of Tokyo
5.530%, 11/21/96 ......................... 9,000 9,000
5.860%, 05/09/97 ......................... 10,000 10,002
First Alabama Bank
5.330%, 07/09/96 ......................... 15,000 15,000
5.020%, 08/05/96 ......................... 10,000 10,000
First Union Bank
5.000%, 08/16/96 ......................... 15,000 15,000
Sanwa Bank
5.540%, 10/29/96 ......................... 15,000 15,001
5.620%, 03/24/97 ......................... 10,000 10,001
- -------------------------------------------------------------------
Total Certificates of Deposit
(Cost $84,004,379) ................... 84,004
- -------------------------------------------------------------------
CORPORATE OBLIGATIONS (12.2%)
CS First Boston
5.450%, 06/23/97 (A) ..................... 28,000 28,000
General Electric
8.750%, 11/26/96 ......................... 2,000 2,031
General Motors Acceptance MTN
5.150%, 11/25/96 ......................... 5,000 4,988
7.000%, 06/02/97 ......................... 8,000 8,076
Merrill Lynch
5.460%, 05/13/97 (A) ..................... 12,000 11,999
Merrill Lynch MTN
5.900%, 05/12/97 ......................... 15,000 15,000
- -------------------------------------------------------------------
Total Corporate Obligations
(Cost $70,093,708) ................... 70,094
- -------------------------------------------------------------------
BANK NOTES (6.7%)
Banc One
7.800%, 12/30/96 ......................... 9,000 9,112
Face
Amount Value
(000) (000)
-------- --------
FCC National Bank
5.500%, 03/14/97 ......................... $10,000 $ 9,995
First of America Bank
5.060%, 01/23/97 ......................... 20,000 19,905
- -------------------------------------------------------------------
Total Bank Notes
(Cost $39,012,090) ................... 39,012
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (4.2%)
FHLB
5.575%, 06/12/96 ......................... 5,000 5,000
FNMA
5.700%, 05/19/97 (A) ..................... 19,000 19,054
- -------------------------------------------------------------------
Total U.S. Government Agency
Obligations
(Cost $24,053,682) ................... 24,054
- -------------------------------------------------------------------
REPURCHASE AGREEMENTS (41.0%)
Lehman
5.320%, dated 05/31/96, matures
06/03/96, repurchase price $26,571,208
(collateralized by various GNMA
obligations total par value $90,317,641,
6.500%-12.000%, 03/15/01-04/20/26;
total market value: $27,087,219) ....... 26,559 26,559
Merrill Lynch
5.320%, dated 05/31/96, matures
06/03/96, repurchase price $69,730,845
(collateralized by FHLMC obligation par
value $37,430,000, 6.000%,02/01/99;
various FNMA obligations total par value
$54,404,844, 5.500%-6.500%,
01/01/01-03/01/26; total market
value: $71,461,940) .................... 69,700 69,700
Nomura
5.320%, dated 05/31/96, matures
06/03/96, repurchase price $140,573,176
(collateralized by various FHLMC
obligations total par value $125,583,123,
0.000%-8.350%, 06/15/08-06/01/35;
various FNMA obligations total par value
$103,194,869, 5.869%-9.000%,
04/25/08-06/01/26; total market
value: $143,321,100) ................... 140,511 140,511
- -------------------------------------------------------------------
Total Repurchase Agreements
(Cost $236,770,261) .................. 236,770
- -------------------------------------------------------------------
Total Investments (100.1%)
(Cost $577,136,542) .................. 577,137
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.1%)
Other Assets and Liabilities, Net ........... (189)
- -------------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
CASH RESERVE FUND (concluded)
Value
(000)
--------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
4.0 billion shares authorized) based
on 520,762,331 outstanding shares ................... $520,762
Fund Shares of Investor Class A ($.001 par value--
.25 billion shares authorized) based
on 56,201,332 outstanding shares .................... 56,201
Fund Shares of Investor Class B ($.001 par value--
.25 billion shares authorized) based
on 14,839 outstanding shares ........................ 15
Net Undistributed Investment Income ................... 50
Accumulated Net Realized Loss on Investments .......... (80)
- -----------------------------------------------------------------
Total Net Assets: (100.0%) ....................... $576,948
- -----------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($520,732,989 (DIVIDE) 520,762,331
SHARES OUTSTANDING) ................................... $1.00
- -----------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS A
($56,200,383 (DIVIDE) 56,201,332
SHARES OUTSTANDING) ................................... $1.00
- -----------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS B
($14,828 (DIVIDE) 14,839
SHARES OUTSTANDING) ................................... $1.00
- -----------------------------------------------------------------
(A) Floating Rate Security--the rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1996. The date reported on the Statement
of Net Assets is the later of the date on which the security can be
redeemed at par or the next date on which the rate of interest is adjusted.
FHLB--Federal Home Loan Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National
Mortgage Association
MTN--Medium Term Note
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- -------------------------------------------------------------------------------
U.S. TREASURY MONEY FUND
Face
Amount Value
(000) (000)
-------- --------
U.S. TREASURY OBLIGATIONS (37.6%)
U.S. Treasury Bills
5.000%, 06/06/96 ......................... $ 30,000 $ 29,980
5.123%, 06/20/96 ......................... 15,000 14,960
5.148%, 08/15/96 ......................... 15,000 14,844
5.173%, 08/22/96 ......................... 15,000 14,828
4.965%, 09/19/96 ......................... 10,000 9,848
U.S. Treasury Notes
6.125%, 07/31/96 ......................... 10,000 10,018
6.875%, 10/31/96 ......................... 10,000 10,078
6.500%, 05/15/97 ......................... 20,000 20,135
U.S. Treasury STRIPS
0.000%, 11/15/96 ......................... 30,000 29,307
0.000%, 02/15/97 ......................... 10,000 9,652
- -------------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $163,649,431) .................. 163,650
- -------------------------------------------------------------------
REPURCHASE AGREEMENTS (62.7%)
J.P. Morgan
5.260%, dated 05/31/96, matures
06/03/96, repurchase price $19,549,717
(collateralized by various U.S. Treasury
obligations total par value $63,093,000,
0.000%, 08/15/03-08/15/20; total
market value: $19,932,812) ............. 19,541 19,541
Merrill Lynch
5.260%, dated 05/31/96, matures
06/03/96, repurchase price
$108,823,609 (collateralized by
various U.S. Treasury obligations total
par value $111,435,000, 0.000%,
06/27/96-08/01/96; total market
value: $110,953,301) ................... 108,776 108,776
Morgan Stanley
5.260%, dated 05/31/96, matures
06/03/96, repurchase price $19,366,894
(collateralized by various U.S. Treasury
obligations total par value $20,580,000,
6.000%-7.500%, 10/31/99-02/15/26;
total market value: $19,846,799) ....... 19,358 19,358
Face
Amount Value
(000) (000)
-------- --------
Nomura
5.260%, dated 05/31/96, matures
06/03/96, repurchase price
$106,163,682 (collateralized by
various U.S. Treasury obligations total
par value $495,815,000, 0.000%,
05/15/16-05/15/20; total market
value: $108,239,675) ................... $106,117 $106,117
Prudential
5.260%, dated 05/31/96, matures
06/03/96, repurchase price
$19,811,203 (collateralized by
U.S. Treasury Obligation par value
$16,509,000, 8.875%, 02/15/19;
total market value: $20,198,741) ....... 19,803 19,803
- -------------------------------------------------------------------
Total Repurchase Agreements
(Cost $273,595,179) .................. 273,595
- -------------------------------------------------------------------
Total Investments (100.3%)
(Cost $437,244,610) .................. 437,245
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.3%)
Other Assets and Liabilities, Net ........... (1,445)
- -------------------------------------------------------------------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
3.75 billion shares authorized)
based on 435,799,783 outstanding shares .. 435,800
- -------------------------------------------------------------------
Total Net Assets: (100.0%) ............. $435,800
- -------------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($435,799,783 (DIVIDE) 435,799,783
SHARES OUTSTANDING) ......................... $1.00
===================================================================
STRIPS--Separate Trading of Registered Interest and Principal Securities
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
TAX-FREE MONEY FUND
Face
Amount Value
(000) (000)
-------- --------
MUNICIPAL BONDS (95.5%)
ARIZONA (2.3%)
Arizona State University, RB, Prerefunded
07/01/96 @ 102
7.875%, 07/01/15 ......................... $2,000 $2,047
Maricoba County, AZ Community College
District, RB, Prerefunded 07/15/96 @ 102
7.750%, 07/15/05 ......................... 1,700 1,742
- ---------------------------------------------------------------
3,789
- ---------------------------------------------------------------
CALIFORNIA (0.7%)
University of California Parking System
Project, Ser C, RB, Prerefunded
11/01/96 @ 102
7.750%, 11/01/15 ......................... 1,100 1,142
- ---------------------------------------------------------------
DISTRICT OF COLUMBIA (0.8%)
District of Columbia, GO, AMBAC,
Prerefunded 06/01/96 @ 100
6.250%, 06/01/07 ......................... 1,260 1,260
- ---------------------------------------------------------------
FLORIDA (5.3%)
Orange County, FL, TECP, MBIA
3.750%, 06/10/96 ......................... 6,000 6,000
3.400%, 07/09/96 ......................... 2,600 2,600
- ---------------------------------------------------------------
8,600
- ---------------------------------------------------------------
GEORGIA (5.1%)
Cobb County, GA, Rhodes Home Project, RB
3.600%, 06/07/96 (A) (B) ................. 2,125 2,125
Dalton Whitfield County, GA, Hospital
Authority, Ser B, RB
3.650%, 06/07/96 (A) (B) ................. 1,095 1,095
Marietta, GA, Multifamily Housing Authority
Falls At Bells Ferry Project, RB
3.550%, 01/15/97 (B) ..................... 5,100 5,100
- ---------------------------------------------------------------
8,320
- ---------------------------------------------------------------
ILLINOIS (1.0%)
Illinois State Health, TECP, MBIA
3.650%, 07/09/96 ......................... 1,700 1,700
- ---------------------------------------------------------------
INDIANA (2.3%)
Fort Wayne, IN, Parkview Memorial Hospital
Project, Ser B, RB
3.600%, 06/07/96 (A) (B) ................. 3,700 3,700
- ---------------------------------------------------------------
LOUISIANA (6.6%)
De Soto Parish, LA, Central Louisiana
Electric Company Project, RB
3.500%, 06/07/96 (A) (B) ................. 3,710 3,710
Jefferson Parish, LA, Hospital Service
District Number 2, RB, FGIC
3.500%, 06/07/96 (A) ..................... 6,000 6,000
Face
Amount Value
(000) (000)
-------- --------
Jefferson Parish, LA, School Board,
RB, AMBAC
5.000%, 02/01/97 ........................... $ 1,010 $ 1,019
- -------------------------------------------------------------------
10,729
- -------------------------------------------------------------------
MARYLAND (13.9%)
Baltimore County, MD, TECP
3.700%, 06/05/96 ........................... 4,000 4,000
3.750%, 06/05/96 ........................... 3,000 3,000
Howard County, MD, Multifamily Housing
Authority Sherwood Crossing Project, RB
4.250%, 06/01/96 (A) ....................... 3,000 3,000
Maryland State Department of
Transportation, RB
6.200%, 08/15/96 ........................... 1,000 1,005
5.700%, 09/01/96 ........................... 1,000 1,005
Maryland State Health & Higher Education
Facilities Authority Loyola College Issue, RB
3.800%, 06/03/96 (A) (B) ................... 7,500 7,500
Montgomery County, MD, TECP
3.150%, 06/04/96 (B) ....................... 3,000 3,000
- -------------------------------------------------------------------
22,510
- -------------------------------------------------------------------
NEBRASKA (3.4%)
City of Lincoln, NE, TECP
3.650%, 06/26/96 (B) ....................... 5,500 5,500
- -------------------------------------------------------------------
NEW MEXICO (2.2%)
Los Alamos County, NM, RB, Prerefunded
01/01/97 @ 102
7.750%, 01/01/15 ........................... 3,480 3,636
- -------------------------------------------------------------------
NEW YORK (0.3%)
New York State United Nations Development
Corporation Project, Ser B, RB, Prerefunded
07/01/96 @ 102
8.250%, 07/01/26 ........................... 500 512
- -------------------------------------------------------------------
NORTH CAROLINA (2.5%)
North Carolina State Medical Care
Community Hospital Project, Ser A, RB
3.800%, 06/07/96 (A) (B) ................... 4,000 4,000
- -------------------------------------------------------------------
RHODE ISLAND (3.7%)
Rhode Island State, TAN, GO
4.500%, 06/28/96 (B) ....................... 6,000 6,004
- -------------------------------------------------------------------
SOUTH CAROLINA (5.4%)
Charleston, SC, Baker Hospital Project, RB,
Prerefunded 10/01/96 @ 103
9.250%, 10/01/01 ........................... 500 524
Florence County, SC, McLeod Regional
Medical Center Project, Ser A, RB,
FGIC
3.550%, 06/07/96 (A) ....................... 8,200 8,200
- -------------------------------------------------------------------
8,724
- -------------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
TAX-FREE MONEY FUND (continued)
Face
Amount Value
(000) (000)
-------- ------
MUNICIPAL BONDS (continued)
SOUTH DAKOTA (3.2%)
South Dakota State, Heartland Consumers
Power District Project, RB, MBIA,
Prerefunded 01/01/97 @102
7.625%, 01/01/16 .......................... $5,000 $5,220
- ----------------------------------------------------------------
TENNESSEE (3.9%)
Franklin County, TN, Health & Educational
Facilities Authority University of the South
Project, RB
3.600%, 06/07/96 (A) (B) .................. 6,400 6,400
- ----------------------------------------------------------------
TEXAS (3.1%)
Plano, TX, TECP, MBIA
3.350%, 06/10/96 .......................... 5,000 5,000
- ----------------------------------------------------------------
VIRGINIA (29.8%)
Chesapeake, VA, Public Improvements, GO
8.750%, 07/01/96 .......................... 1,400 1,406
7.250%, 08/01/96 .......................... 1,000 1,006
Chesterfield County, VA, Industrial
Development Authority Phillip Morris
Companies Project, RB
3.600%, 06/07/96 (A) ...................... 2,500 2,500
Fairfax County, VA, Industrial Development
Authority, RB, Prerefunded 10/01/96 @ 103
7.875%, 10/01/17 .......................... 2,165 2,258
Fairfax County, VA, Ser A, GO, Prerefunded
06/01/96 @ 100.25
6.800%, 06/01/97 .......................... 1,000 1,002
Fairfax County, VA, Public Improvements,
Ser A, GO
5.000%, 06/01/96 (B) ...................... 1,000 1,000
Greensville County, VA, Industrial
Development Authority Georgia Pacific
Project, RB
3.600%, 06/07/96 (A) (B) .................. 3,850 3,850
Hampton Roads, VA, Sanitation District
Sewer Project, RB, Prerefunded
07/01/96 @ 101
5.900%, 07/01/98 .......................... 2,300 2,308
Hanover County, VA, Industrial Development
Authority Carter Machinery Project, RB
3.650%, 06/07/96 (A) (B) .................. 500 500
Louisa County, VA, Industrial Development
Authority, RB
3.650%, 06/07/96 (A) (B) .................. 5,000 5,000
Prince William County, VA, Industrial
Development Authority, TECP, RB
3.400%, 06/14/96 (B) ...................... 2,800 2,800
Pulaski County, VA, Industrial Development
Authority Pulaski Furniture, RB
3.650%, 06/07/96 (A) ...................... 4,219 4,219
Face
Amount Value
(000) (000)
-------- --------
Richmond, VA, Public Housing Authority
Old Manchester Project, Ser A, RB
3.800%, 06/07/96 (A) (B) ............... $ 3,100 $ 3,100
Richmond, VA, Industrial Development
Authority Philip Morris Companies
Project, RB
3.600%, 06/07/96 (A) ................... 1,700 1,700
Richmond, VA, Redevelopment Housing
Authority Stony Point Project, RB
3.750%, 06/07/96 (A) (B) ............... 1,800 1,800
Virginia Beach, VA, Industrial Development
Authority Fountainhead Project, RB
3.650%, 06/07/96 (A) (B) ............... 2,939 2,939
Virginia Beach, VA, Public Improvements, GO
4.000%, 11/01/96 (B) ................... 1,000 1,001
Virginia State College Building Authority
Educational Facilities Equipment Leasing
Program, RB
5.350%, 10/01/96 ....................... 250 252
Virginia State Refunding Bond, GO
5.000%, 06/01/96 ....................... 3,185 3,185
Virginia State Higher Educational
Institutions, Ser C, RB
5.000%, 06/01/96 ....................... 430 430
York County, VA, Industrial Development
Authority Philip Morris Companies
Project, RB
3.600%, 06/07/96 (A) ................... 2,700 2,700
York County, VA, Electric & Power
Project, TECP
3.600%, 06/12/96 (B) ................... 3,400 3,400
- -----------------------------------------------------------------
48,356
- -----------------------------------------------------------------
Total Municipal Bonds
(Cost $155,102,792) ................ 155,102
- -----------------------------------------------------------------
CASH EQUIVALENTS (3.8%)
Financial Square Tax Free Portfolio ....... 3,176 3,176
SEI Institutional Tax Free Portfolio ...... 2,917 2,917
- -----------------------------------------------------------------
Total Cash Equivalents
(Cost $6,092,695) .................. 6,093
- -----------------------------------------------------------------
Total Investments (99.3%)
(Cost $161,195,487) ................ 161,195
- -----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.7%)
Other Assets and Liabilities, Net ......... 1,128
- -----------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
TAX-FREE MONEY FUND (concluded)
Value
(000)
------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
.9 billion shares authorized)
based on 160,137,206 outstanding shares ............ $160,137
Fund Shares of Investor Class A ($.001 par
value--.1 billion shares authorized) based
on 2,178,861 outstanding shares .................... 2,179
Net Undistributed Investment Income .................. 7
- ----------------------------------------------------------------
Total Net Assets: (100.0%) ...................... $162,323
- ----------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($160,143,856 (DIVIDE) 160,137,206
SHARES OUTSTANDING) .................................. $1.00
- ----------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS A
($2,178,886 (DIVIDE) 2,178,861
SHARES OUTSTANDING) .................................. $1.00
================================================================
(A) Floating Rate Security--the rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1996. The date reported on the Statement
of Net Assets is the later of the date on which the security can be
redeemed at par or the next date on which the rate of interest is adjusted.
(B) Security backed by letter of credit or credit support.
AMBAC--American Municipal Bond Assurance Corporation
FGIC--Financial Guaranty Investors Assurance
GO--General Obligation
MBIA--Municipal Bond Insurance Association
RB--Revenue Bond
Ser--Series
TAN--Tax Anticipation Note
TECP--Tax Exempt Commercial Paper
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
LIMITEDTERMBONDFUND
Face Market
Amount Value
(000) (000)
-------- --------
U.S. TREASURY OBLIGATIONS (24.3%)
U.S. Treasury Notes
6.000%, 06/30/96 ......................... $ 2,000 $ 2,002
6.125%, 05/31/97 ......................... 2,000 2,005
6.750%, 05/31/97 ......................... 1,000 1,008
5.500%, 09/30/97 ......................... 1,000 993
7.250%, 02/15/98 ......................... 1,000 1,016
5.125%, 11/30/98 ......................... 2,000 1,944
6.375%, 01/15/99 ......................... 1,000 1,000
5.875%, 03/31/99 ......................... 1,000 986
7.000%, 04/15/99 ......................... 1,000 1,015
6.000%, 10/15/99 ......................... 2,000 1,971
5.500%, 12/31/00 ......................... 2,000 1,911
6.375%, 08/15/02 ......................... 1,000 982
5.750%, 08/15/03 ......................... 2,000 1,883
U.S. Treasury STRIPS
0.000%, 08/15/04 ......................... 2,000 1,147
0.000%, 05/15/11 ......................... 4,000 1,385
- -----------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $21,931,552) ................... 21,248
- -----------------------------------------------------------------
U.S.GOVERNMENT AGENCY OBLIGATIONS (11.3%)
FFCB MTN
7.125%, 06/01/01 ......................... 1,000 1,011
8.600%, 05/30/06, Callable
05/30/01 @ 100 .......................... 1,000 1,064
FHLB
5.870%, 06/26/98 ......................... 2,000 1,980
FHLMC
5.980%, 12/08/05 ......................... 1,000 920
FNMA
6.310%, 11/02/00 ......................... 500 488
FNMA MTN
6.610%, 03/24/99 ......................... 1,750 1,755
6.250%, 01/14/04, Callable
01/14/97 @ 100 .......................... 1,000 941
6.770%, 09/01/05 ......................... 1,750 1,705
- -----------------------------------------------------------------
Total U.S.Government Agency
Obligations
(Cost $10,143,872) ................... 9,864
- -----------------------------------------------------------------
MORTGAGE-BACKED SECURITIES (7.9%)
FHLMC
4.350%, 06/15/03 ......................... 752 749
7.000%, 01/01/11 .......................... 1,926 1,893
7.500%, 05/01/26 .......................... 2,000 1,960
FNMA
8.500%, 03/01/25 ......................... 658 672
FNMA ARM
7.329%, 06/01/96 (A) ..................... 1,029 1,052
GNMA
9.750%, 03/15/99 ......................... 64 68
Face Market
Amount Value
(000) (000)
-------- --------
Resolution Trust Corporation CMO
7.000%, 02/15/04 ................. $ 489 $ 490
- ---------------------------------------------------------
Total Mortgage-Backed Securities
(Cost $6,914,078) ............ 6,884
- ---------------------------------------------------------
CORPORATE OBLIGATIONS (38.3%)
Alcan Aluminum
5.875%, 04/01/00 ................. 2,000 1,930
Allstate
5.875%, 06/15/98 ................. 1,000 985
American Home Products
6.875%, 04/15/97 ................. 1,000 1,005
Associates of North America
6.000%, 03/15/99 ................. 1,000 981
AT&T Capital
5.125%, 02/21/97 ................. 400 398
Caterpillar Financial Services MTN
5.319%, 06/07/96 (A) ............. 2,000 1,981
Central Fidelity MTN
5.000%, 06/17/96 ................. 2,000 2,000
Chrysler Financial
5.875%, 02/07/01 ................. 3,000 2,850
Commercial Credit
7.375%, 03/15/02 ................. 500 504
Connecticut Light & Power
5.500%, 02/01/99 ................. 1,000 964
Deere
8.250%, 06/01/96 ................. 1,000 1,000
Detroit Edison
6.400%, 10/01/98 ................. 975 968
Ford Motor Credit MTN
6.750%, 05/15/05 ................. 3,000 2,861
General Electric
6.835%, 04/03/97 ................. 1,000 1,009
General Motors Acceptance
7.750%, 01/15/99 ................. 1,500 1,534
Houston Lighting & Power
5.250%, 01/01/97 ................. 1,000 995
IBM MTN
6.375%, 06/15/00 ................. 2,000 1,965
IBM Credit MTN
4.850%, 09/03/96 ................. 1,000 998
International Lease Finance
7.410%, 09/01/99 ................. 1,200 1,218
Philip Morris
9.250%, 12/01/97 ................. 1,000 1,044
6.375%, 01/15/98 ................. 2,000 1,995
Pitney Bowes Credit
6.250%, 06/01/98 ................. 1,000 994
Salomon Brothers
7.125%, 08/01/99 ................. 1,300 1,297
USL Capital
6.500%, 12/01/03 ................. 2,000 1,908
- ---------------------------------------------------------
Total Corporate Obligations
(Cost $34,004,874) ........... 33,384
- ---------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
LIMITED TERM BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
ASSET BACKED SECURITIES (14.2%)
Advanta Credit Card Master Trust,
Ser 1995-F A1
6.050%, 08/01/03 .................................... $ 1,000 $ 963
American Express Master Trust, Ser 1992-2A
6.600%, 07/15/99 .................................... 2,000 1,997
Chase Manhattan Grantor Trust, Ser 1995-B
5.900%, 11/15/01 .................................... 1,602 1,596
CIT RV Grantor Trust, Ser 1994-A, Cl A
4.900%, 07/15/09 .................................... 1,104 1,066
CoreStates Home Equity Trust, Ser 1994-1A
6.650%, 05/15/09 .................................... 780 762
Greentree Manufacturing Housing,
Ser 1995-7 A2
6.150%, 11/15/26 .................................... 1,000 991
Premier Auto Trust, Ser 1993-5 A2
4.220%, 03/02/99 .................................... 646 637
Sears Credit Account Master Trust,
Ser 1992-1, Cl A
5.900%, 11/15/98 .................................... 250 249
Signet Credit Card Master Trust,
Ser 1994-1A
5.748%, 06/15/96 (A) ................................ 1,000 1,000
Spiegel Master Trust, Ser 1995-A
7.500%, 09/15/04 .................................... 1,000 1,018
The Money Store Home Equity Trust,
Ser 1995-A1
7.925%, 02/15/14 .................................... 2,000 2,025
Volvo Auto Receivables Grantor Trust,
Ser 1992-B, Cl A
5.450%, 12/15/98 .................................... 99 99
- ----------------------------------------------------------------------------
Total Asset Backed Securities
(Cost $12,497,717) .............................. 12,403
- ----------------------------------------------------------------------------
CASH EQUIVALENT (2.9%)
Aim Liquid Assets Portfolio ............................ 2,507 2,507
- ----------------------------------------------------------------------------
Total Cash Equivalent
(Cost $2,507,229) ............................... 2,507
- ----------------------------------------------------------------------------
Total Investments (98.9%)
(Cost $87,999,323) .............................. 86,290
- ----------------------------------------------------------------------------
Market
Value
(000)
------
OTHER ASSETS AND LIABILITIES (1.1%)
Other Assets and Liabilities, Net .................... $ 980
- -----------------------------------------------------------------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
1.4 billion shares authorized) based
on 8,770,894 outstanding shares .................... 88,130
Fund Shares of Investor Class A ($.001 par
value--.1 billion shares authorized) based
on 180,728 outstanding shares ...................... 1,821
Net Unrealized Depreciation of Investments ........... (1,709)
Accumulated Net Realized Loss on Investments ......... (973)
Net Undistributed Investment Income .................. 1
- -----------------------------------------------------------------
Total Net Assets: (100.0%) ...................... $87,270
- -----------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($85,502,936 (DIVIDE) 8,770,894
SHARES OUTSTANDING) .................................. $9.75
- -----------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS A
($1,766,759 (DIVIDE) 180,728
SHARES OUTSTANDING) .................................. $9.78
- -----------------------------------------------------------------
OFFERING PRICE PER SHARE--INVESTOR CLASS A
($9.78 (DIVIDE) 98.0%) ............................... $9.98
=================================================================
(A) Floating Rate Security--the rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1996. The date reported on the Statement
of Net Assets is the later of the date on which the security can be
redeemed at par or the next date on which the rate of interest is adjusted.
ARM--Adjustable Rate Mortgage
Cl--Class CMO--Collateralized Mortgage Obligation
FFCB--Federal Farm Credit Bank
FHLB--Federal Home Loan Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
MTN--Medium Term Note
Ser--Series
STRIPS--Separate Trading of Registered Interest and Principal Securities
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (42.9%)
U.S. Treasury Notes
5.125%, 02/28/98 ......................... $ 2,000 $ 1,965
5.125%, 03/31/98 ......................... 3,000 2,944
5.875%, 04/30/98 ......................... 2,000 1,987
6.000%, 05/31/98 ......................... 2,400 2,388
5.875%, 08/15/98 ......................... 3,000 2,974
6.375%, 01/15/99 ......................... 3,000 2,999
5.000%, 02/15/99 ......................... 1,000 965
6.875%, 07/31/99 ......................... 2,000 2,020
8.000%, 08/15/99 ......................... 1,500 1,562
7.875%, 11/15/99 ......................... 1,000 1,040
5.500%, 04/15/00 ......................... 2,000 1,928
6.250%, 08/31/00 ......................... 1,000 986
5.500%, 12/31/00 ......................... 3,000 2,866
5.625%, 02/28/01 ......................... 2,000 1,917
7.875%, 08/15/01 ......................... 1,000 1,052
6.375%, 08/15/02 ......................... 1,000 982
6.250%, 02/15/03 ......................... 2,500 2,432
5.750%, 08/15/03 ......................... 3,000 2,824
5.625%, 02/15/06 ......................... 3,000 2,750
U.S. Treasury Bonds
10.000%, 05/15/10 ......................... 2,000 2,397
7.125%, 02/15/23 ......................... 2,000 1,990
6.250%, 08/15/23 ......................... 3,000 2,676
U.S. Treasury STRIPS
0.000%, 11/15/02 ......................... 2,000 1,304
0.000%, 08/15/04 ......................... 1,000 573
- -----------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $48,474,266) ................... 47,521
- -----------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (8.1%)
FFCB MTN
7.125%, 06/01/01 ......................... 2,000 2,022
8.600%, 05/30/06, Callable
05/30/01 @ 100 .......................... 1,000 1,064
FHLMC
5.980%, 12/08/05 ......................... 1,000 920
FNMA
8.350%, 11/10/99 ......................... 1,000 1,051
FNMA MTN
6.250%, 01/14/04, Callable
01/14/97 @ 100 .......................... 1,000 941
6.770%, 09/01/05 ......................... 3,000 2,924
- -----------------------------------------------------------------
Total U.S. Government Agency
Obligations
(Cost $9,293,137) .................... 8,922
- -----------------------------------------------------------------
MORTGAGE-BACKED SECURITIES (7.5%)
FHLMC
6.750%, 11/15/04 ......................... 2,000 1,949
7.000%, 01/01/11 ......................... 1,926 1,893
7.500%, 05/01/26 ......................... 2,000 1,960
FNMA
7.000%, 01/25/21 ......................... 1,500 1,464
8.500%, 03/01/25 ......................... 658 672
Face Market
Amount Value
(000) (000)
------ ------
Resolution Trust Corporation CMO
7.000%, 02/15/04 ................. $ 391 $ 392
- -------------------------------------------------------
Total Mortgage-Backed Securities
(Cost $8,381,297) ............ 8,330
- -------------------------------------------------------
CORPORATE OBLIGATIONS (28.6%)
Allstate
5.875%, 06/15/98 ................. 1,000 985
Associates of North America
6.000%, 03/15/99 ................. 1,000 981
AT&T
7.000%, 05/15/05 ................. 1,000 983
AT&T MTN
5.560%, 07/26/96 (A) ............. 1,000 987
BankAmerica
7.500%, 10/15/02 ................. 1,000 1,009
Bank of New York
7.625%, 07/15/02 ................. 1,000 1,021
Caterpillar Financial Services MTN
5.203%, 06/07/96 (A) ............. 2,000 1,981
Chrysler Financial Corp
5.625%, 01/15/99 ................. 1,000 972
Deere
8.250%, 06/01/96 ................. 1,000 1,000
First Chicago
7.625%, 01/15/03 ................. 1,000 1,016
Ford Motor
7.500%, 11/15/99 ................. 1,000 1,019
Ford Motor Credit
6.750%, 05/15/05 ................. 1,000 954
General Motors Acceptance
8.500%, 01/01/03 ................. 1,000 1,064
General Motors Acceptance MTN
7.000%, 03/01/00 ................. 1,000 1,000
IBM
6.375%, 06/15/00 ................. 2,000 1,965
Illinois Bell Telephone
5.800%, 02/01/04 ................. 1,000 919
International Bank Reconstruction
& Development
0.000%, 02/15/08 ................. 2,000 842
KeyCorp
8.000%, 07/01/04 ................. 1,000 1,034
Loews
8.250%, 01/15/07 ................. 1,000 1,039
Marriott International
7.125%, 06/01/07 ................. 1,750 1,660
Mellon Bank
6.500%, 08/01/05 ................. 2,000 1,870
Morgan Stanley
6.375%, 12/15/03 ................. 1,000 946
Occidental Petroleum
8.500%, 11/09/01 ................. 1,000 1,061
Philip Morris
7.125%, 08/15/02 ................. 1,000 994
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
CORPORATE OBLIGATIONS (continued)
Pitney Bowes Credit
6.625%, 06/01/02 ........................ $ 2,000 $ 1,955
USL Capital
6.500%, 12/01/03 ........................ 2,000 1,907
WMX Technologies
6.250%, 10/15/00 ........................ 500 486
- ----------------------------------------------------------------
Total Corporate Obligations
(Cost $32,423,657) .................. 31,650
- ----------------------------------------------------------------
ASSET BACKED SECURITIES (5.6%)
American Express Master Trust, Ser 1992-2A
6.600%, 07/15/99 ........................ 1,000 998
CIT RV Grantor Trust, Ser 1994-A, Cl A
4.900%, 07/15/09 ........................ 552 533
EQCC Home Equity Loan Trust,
Ser 1994-1, Cl A
5.800%, 03/15/09 ........................ 1,300 1,243
Greentree Manufacturing Housing,
Ser 1995-7 A2
6.150%, 11/15/26 ........................ 1,000 991
Sears Credit Account Master Trust,
Ser 1992-1A
5.900%, 11/15/98 ........................ 125 125
Signet Credit Card Master Trust,
Ser 1994-1A
5.563%, 06/15/96(A) ..................... 1,000 1,000
The Money Store Home Equity Trust,
Ser 1995-A1
7.925%, 02/15/14 ........................ 1,250 1,266
Volvo Auto Receivables Grantor Trust,
Ser 1992-B, Cl A
5.450%, 12/15/98 ........................ 50 49
- ----------------------------------------------------------------
Total Asset Backed Securities
(Cost $6,284,924) ................... 6,205
- ----------------------------------------------------------------
CASH EQUIVALENT (4.5%)
Aim Liquid Assets Portfolio ................ 5,004 5,004
- ----------------------------------------------------------------
Total Cash Equivalent
(Cost $5,003,617) ................... 5,004
- ----------------------------------------------------------------
REPURCHASE AGREEMENT (1.8%)
Lehman
5.330%, dated 05/31/96, matures
06/03/96, repurchase price $1,967,909
(collateralized by various FHLMC
obligations total par value $2,915,240,
5.500%-8.500%, 05/01/01-06/01/35;
total market value: $2,007,746) ....... 1,967 1,967
- ----------------------------------------------------------------
Total Repurchase Agreement
(Cost $1,967,035) ................... 1,967
- ----------------------------------------------------------------
Market
Value
(000)
------
Total Investments (99.0%)
(Cost $111,827,933) ............................. $109,599
- --------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.0%)
Other Assets and Liabilities, Net ...................... 1,122
- --------------------------------------------------------------------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
1.4 billion shares authorized) based
on 11,324,226 outstanding shares ..................... 113,024
Fund Shares of Investor Class A ($.001 par
value--.1 billion shares authorized)
based on 203,370 outstanding shares .................. 2,029
Net Unrealized Depreciation of Investments ............. (2,229)
Accumulated Net Realized Loss on Investments ........... (2,110)
Net Undistributed Investment Income .................... 7
- --------------------------------------------------------------------
Total Net Assets: (100.0%) ........................ $110,721
- --------------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($108,766,514 (DIVIDE) 11,324,226
SHARES OUTSTANDING) .................................... $9.60
- --------------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS A
($1,954,527 (DIVIDE) 203,370
SHARES OUTSTANDING) .................................... $9.61
- --------------------------------------------------------------------
OFFERING PRICE PER SHARE--INVESTOR CLASS A
($9.61 (DIVIDE) 97.0%) ................................. $9.91
====================================================================
(A) Floating Rate Security--the rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1996. The date reported on the Statement
of Net Assets is the later of the date on which the security can be
redeemed at par or the next date on which the rate of interest is adjusted.
Cl--Class
CMO--Collateralized Mortgage Obligation
FFCB--Federal Farm Credit Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
MTN--Medium Term Note
Ser--Series
STRIPS--Separate Trading of Registered Interest and Principal Securities
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (63.0%)
U.S. Treasury Notes
6.500%, 11/30/96 ......................... $ 250 $ 251
6.000%, 11/30/97 ......................... 250 250
6.000%, 12/31/97 ......................... 250 250
5.125%, 02/28/98 ......................... 250 246
5.125%, 03/31/98 ......................... 500 491
5.875%, 04/30/98 ......................... 500 497
5.375%, 05/31/98 ......................... 250 246
6.000%, 05/31/98 ......................... 300 298
5.875%, 08/15/98 ......................... 500 496
6.375%, 01/15/99 ......................... 500 500
5.000%, 02/15/99 ......................... 250 241
5.875%, 03/31/99 ......................... 250 247
6.750%, 05/31/99 ......................... 500 504
8.750%, 08/15/00 ......................... 500 538
5.625%, 02/28/01 ......................... 250 240
6.375%, 08/15/02 ......................... 500 491
5.750%, 08/15/03 ......................... 250 235
5.875%, 02/15/04 ......................... 250 236
5.875%, 11/15/05 ......................... 250 233
5.625%, 02/15/06 ......................... 500 458
U.S. Treasury Bonds
8.750%, 11/15/08 ......................... 500 551
8.125%, 05/15/21 ......................... 500 554
8.000%, 11/15/21 ......................... 500 547
7.125%, 02/15/23 ......................... 250 249
6.250%, 08/15/23 ......................... 750 669
U.S. Treasury STRIPS
0.000%, 08/15/04 ......................... 500 287
0.000%, 05/15/11 ......................... 1,000 346
- -----------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $10,318,710) ................... 10,151
- -----------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (6.6%)
FHLMC
6.395%, 05/16/00 ......................... 500 492
5.980%, 12/08/05 ......................... 350 322
FNMA MTN
6.770%, 09/01/05 ......................... 250 244
- -----------------------------------------------------------------
Total U.S. Government Agency
Obligations
(Cost $1,109,641) .................... 1,058
- -----------------------------------------------------------------
MORTGAGE-BACKED SECURITIES (3.6%)
FHLMC
7.000%, 01/01/11 .......................... 292 287
7.500%, 05/01/26 .......................... 300 294
- -----------------------------------------------------------------
Total Mortgage-Backed Securities
(Cost $588,754) ...................... 581
- -----------------------------------------------------------------
Face Market
Amount Value
(000) (000)
------ ------
CORPORATE OBLIGATIONS (16.7%)
Associates of North America
6.000%, 03/15/99 ....................... $ 250 $ 245
6.000%, 03/15/00 ....................... 250 242
AT&T
7.000%, 05/15/05 ....................... 250 246
Ford Motor Credit MTN
6.750%, 05/15/05 ....................... 250 238
General Motors Acceptance
7.750%, 01/15/99 ....................... 250 256
Houston Lighting & Power
6.100%, 03/01/00 ....................... 250 243
IBM
6.375%, 06/15/00 ....................... 250 246
Marriott International
7.125%, 06/01/07 ....................... 250 237
Philip Morris
7.625%, 05/15/02 ....................... 250 254
Pitney Bowes Credit
6.250%, 06/01/98 ....................... 250 248
Wal-Mart Stores
5.875%, 10/15/05 ....................... 250 226
- ---------------------------------------------------------------
Total Corporate Obligations
(Cost $2,724,738) .................. 2,681
- ---------------------------------------------------------------
ASSET BACKED SECURITIES (2.5%)
EQCC Home Equity Loan Trust, Ser 1994-1 A
5.800%, 03/15/09 ....................... 162 155
The Money Store, Ser 1995-A1
7.925%, 02/15/14 ....................... 250 253
- ---------------------------------------------------------------
Total Asset Backed Securities
(Cost $414,355) .................... 408
- ---------------------------------------------------------------
CASH EQUIVALENT (2.2%)
Aim Liquid Assets Portfolio ............... 353 353
- ---------------------------------------------------------------
Total Cash Equivalent
(Cost $353,165) .................... 353
- ---------------------------------------------------------------
REPURCHASE AGREEMENT (4.7%)
Lehman
5.330%, dated 05/31/96, matures
06/03/96, repurchase price $763,897
(collateralized by GNMA obligation par
value $2,530,000, 8.500%, 02/15/17;
total market value: $779,287) ........ 764 764
- ---------------------------------------------------------------
Total Repurchase Agreement
(Cost $763,558) .................... 764
- ---------------------------------------------------------------
Total Investments (99.3%)
(Cost $16,272,921) ................. 15,996
- ---------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.7%)
Other Assets and Liabilities, Net ......... 105
- ---------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND (concluded)
Market
Value
(000)
------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
.75 billion shares authorized) based
on 1,544,920 outstanding shares .............. $15,818
Fund Shares of Investor Class B ($.001 par
value--.125 billion shares authorized)
based on 52,517 outstanding shares ........... 552
Net Unrealized Depreciation of Investments ..... (277)
Accumulated Net Realized Gain on Investments ... 8
- ---------------------------------------------------------
Total Net Assets: (100.0%) ................ $16,101
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($15,570,553 (DIVIDE) 1,544,920
SHARES OUTSTANDING) ............................ $10.08
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS B
($530,285 (DIVIDE) 52,517 SHARES OUTSTANDING) .. $10.10
=========================================================
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
MTN--Medium Term Note
Ser--Series
STRIPS--Separate Trading of Registered Interest and Principal Securities
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (95.6%)
VIRGINIA (95.6%)
Arlington County, VA Refunding Bond, GO
5.100%, 06/01/97 ............................ $1,000 $1,014
Arlington County, VA Public
Improvements, GO
5.250%, 08/01/98 ............................ 1,000 1,019
5.000%, 07/15/01 ............................ 500 508
Arlington County, VA Industrial Development
Authority Arlington Hospital Facility Project,
RB, Callable 09/01/03 @ 102
5.125%, 09/01/08 ............................ 1,000 935
Chesapeake, VA Hospital Authority First
Mortgage Chesapeake General Hospital
Project, RB, MBIA
5.000%, 07/01/03 ............................ 300 300
Chesterfield County, VA, Ser A, GO,
Prerefunded 01/15/00 @ 102
6.750%, 01/15/10 ............................ 1,000 1,084
Chesterfield County, VA Refunding &
Improvement Bond, GO, Callable
07/15/01 @ 102
5.900%, 07/15/02 ............................ 250 265
Danville, VA Public Improvements, GO,
Callable 04/01/03 @ 102
5.600%, 04/01/09 (B) ........................ 250 249
Danville, VA School Improvements Project,
GO, Callable 08/01/03 @ 102, MBIA
5.400%, 08/01/08 ............................ 500 494
Fairfax County, VA Refunding Bond,
Ser A, GO Callable 06/01/00 @ 101
5.200%, 06/01/06 (B) ........................ 1,000 1,004
Fairfax County, VA Refunding Bond,
Ser C, GO Callable 10/01/99 @ 100
5.200%, 10/01/01 (B) ........................ 500 511
Fairfax County, VA Industrial Development
Authority Innovation Health System
Project, RB
5.000%, 08/15/08 ............................ 1,000 940
Fairfax County, VA Refunding Bond,
Ser C, GO
4.000%, 05/01/97 (B) ........................ 1,000 1,004
Fauquier County, VA School Improvements,
GO, Callable 07/15/03 @ 102
5.550%, 07/15/09 ............................ 800 796
Frederick-Winchester, VA Service Authority
Regional Sewer System, RB, AMBAC
4.900%, 10/01/99 ............................ 200 200
Hampton, VA Public Improvements,
Ser C, GO, Callable 08/01/03 @ 102
4.800%, 08/01/06 ............................ 1,000 956
Hampton, VA Sanitation District Wastewater
Authority, RB, Callable 10/01/03 @ 102
4.900%, 10/01/06 ............................ 1,000 965
Harrisonburg, VA Refunding Bond, GO
6.000%, 08/01/99 ............................ 1,000 1,039
Face Market
Amount Value
(000) (000)
------ ------
Henrico County, VA Refunding Bond, GO
4.500%, 01/15/00 ......................... $1,000 $ 995
Henrico County, VA Industrial Development
Authority Bon Secours Health System
Project, RB, Callable 08/15/03 @ 102, FSA
5.000%, 08/15/04 ......................... 400 385
Henrico County, VA Refunding Bond Public
Improvements Project, GO, Callable
01/15/03 @ 102
5.200%, 01/15/07 ......................... 1,000 996
James City County, VA Public
Improvements, GO, FGIC
4.800%, 12/15/05 (B) ..................... 1,000 969
James Madison University, VA, RB,
Callable 06/01/03 @ 102, AMBAC
5.375%, 06/01/09 ......................... 500 476
Leesburg, VA Public Improvements
Project, GO, AMBAC
4.900%, 06/01/00 ......................... 440 444
Newport News, VA Public Improvements
Project, Ser A, GO, Callable 01/15/06 @ 102
5.200%, 01/15/16 ......................... 960 876
Newport News, VA Public Housing Authority
Multi-Family Housing For Newport-Oxford
Project, RB
3.900%, 11/01/06 (A) (B) ................. 1,300 1,300
Norfolk, VA Refunding Bond, GO
4.700%, 06/01/02 (B) ..................... 1,000 990
Norfolk, VA, Refunding & Improvement
Bond, GO
5.000%, 02/01/03 ......................... 1,000 999
Norfolk, VA, GO, Prerefunded 10/01/98 @ 102
7.000%, 10/01/09 ......................... 1,000 1,079
Norfolk, VA Industrial Development Authority
Childrens Hospital Project, RB, Callable
06/01/04 @ 102, AMBAC
5.100%, 06/01/07 ......................... 1,000 970
Norfolk, VA Industrial Development Authority
Sentara Hospital Project, Ser A, RB,
Callable 11/01/04 @ 102
4.800%, 11/01/06 ......................... 1,000 925
Norfolk, VA Redevelopment & Housing
Authority Tidewater Community College
Project, RB, Callable 11/01/05 @ 102
5.800%, 11/01/08 ......................... 700 717
Peninsula Ports, VA Riverside Health
System Project, Ser A, RB
5.600%, 07/01/98 ......................... 500 507
Petersburg, VA Hospital Authority Southside
Regional Medical Center Project, RB
5.900%, 07/01/02 ......................... 1,000 1,029
Portsmouth, VA Refunding Bond, GO
5.000%, 08/01/02 ......................... 1,000 1,004
Prince William County, VA Refunding Bond,
Ser C, GO, Callable 08/01/03 @ 102
5.100%, 08/01/08 (B) ..................... 1,000 960
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (continued)
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (continued)
VIRGINIA (continued)
Prince William County, VA Park Authority, RB
5.500%, 10/15/99 .......................... $ 500 $ 513
5.800%, 10/15/01 .......................... 500 521
Prince William County, VA Water & Sewer
System, RB, Prerefunded 07/01/01
@ 102 FGIC
6.500%, 07/01/21 .......................... 1,000 1,096
Richmond County, VA Metropolitan
Authority Highway Improvements, Ser B,
RB, Callable 07/15/02 @ 102, FGIC
6.050%, 07/15/05 .......................... 500 521
Roanoke, VA Public Improvements, GO
4.900%, 02/01/06 .......................... 1,000 976
Roanoke, VA Industrial Development
Authority Roanoke Memorial Hospital
Project, Ser B, RB, Callable 07/01/02 @ 102
5.800%, 07/01/05 .......................... 500 504
Spotsylvania County, VA School
Improvements, GO, Callable 07/15/02 @ 102
5.300%, 07/15/03 .......................... 1,500 1,509
Stafford County, VA Water Authority,
RB, FGIC
4.750%, 06/01/03 .......................... 1,000 982
Suffolk, VA Refunding & Improvement
Bond, GO
5.200%, 08/01/02 .......................... 1,500 1,519
Suffolk, VA Redevelopment & Housing
Authority Oak Springs Association
Project, RB, Mandatory Put 02/01/97 @ 100
6.250%, 02/01/05 (B) ...................... 500 502
University of Virginia, Ser A, RB, Callable
06/01/03 @ 102
5.200%, 06/01/12 .......................... 1,500 1,410
University of Virginia, VA Hospital Authority,
Ser E, RB, Callable 06/01/99 @ 100
6.000%, 06/01/13 .......................... 1,000 1,002
Upper Occoquan, VA Sewer Authority,
Ser A, RB, MBIA, Callable 07/01/06 @ 102
5.000%, 07/01/08 .......................... 1,000 941
Virginia Beach, VA Refunding Bond, GO
5.000%, 07/15/03 .......................... 1,000 1,004
5.450%, 07/15/11 .......................... 1,000 982
Virginia Beach, VA Development Authority
First Mortgage Sentara Bayside Hospital
Project, RB, Callable 11/01/01 @ 102
6.300%, 11/01/21 .......................... 750 756
Virginia State College Building Authority
University of Richmond Project, RB,
Callable 11/01/02 @ 102
6.250%, 11/01/12 .......................... 1,000 1,026
Virginia State College Building Authority
University of Richmond Project, RB,
Callable 11/01/04 @ 100
5.550%, 11/01/19 .......................... 1,000 1,020
Face Market
Amount Value
(000) (000)
------ ------
Virginia State Education Loan Authority,
Ser B, RB, Partial Prerefunded
07/01/96 @ 100, ETM
4.850%, 09/01/01 (B) ..................... $ 980 $ 978
Virginia State Education Loan Authority,
Ser C, RB
5.100%, 03/01/00 (B), ETM ................ 300 304
Virginia State Education Loan Authority,
Ser F, RB
5.250%, 03/01/00 (B), ETM ................ 560 571
Virginia State Housing Development
Authority, Ser C-4, RB, Callable
01/01/02 @ 102
4.900%, 01/01/04 ......................... 1,000 976
Virginia State Housing Development
Authority, Ser D, AMT, RB
5.000%, 11/01/01 (B) ..................... 770 770
Virginia State Public Building Authority
Correctional Facilities Project, Ser A, RB
6.750%, 08/01/97 ......................... 1,000 1,027
Virginia State Public Building Authority
Refunding Bond, Ser B, RB
5.625%, 08/01/02 ......................... 250 258
Virginia State Public School Authority,
Ser C, RB
4.500%, 01/01/00 ......................... 1,000 995
Virginia State Public School Authority,
Ser C, RB, Callable 08/01/05 @ 102
5.000%, 08/01/07 (B) ..................... 1,000 966
Virginia State Public School Authority,
Ser C, RB, Callable 01/01/04 @ 102
4.875%, 01/01/09 ......................... 1,000 931
Virginia State Resource Authority Solid
Waste Disposal Systems, Ser E, RB
4.600%, 05/01/00 ......................... 500 496
Virginia State Transportation Authority
Northern Virginia Transportation District
Project, Ser C, RB, Callable 05/15/03 @ 102
5.500%, 05/15/15 ......................... 1,000 953
- --------------------------------------------------------------------
Total Municipal Bonds
(Cost $55,776,954) ................... 54,913
- --------------------------------------------------------------------
CASH EQUIVALENTS (5.0%)
Aim Tax Free Institutional Cash Reserve ..... 861 861
Federated Virginia Municipal Cash Trust ..... 2,009 2,009
- --------------------------------------------------------------------
Total Cash Equivalents
(Cost $2,869,954) .................... 2,870
- --------------------------------------------------------------------
Total Investments (100.6%)
(Cost $58,646,908) ................... 57,783
- --------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.6%)
Other Assets and Liabilities, Net ........... (353)
- --------------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (concluded)
Market
Value
(000)
-----
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
.75 billion shares authorized) based
on 4,943,158 outstanding shares ............. $ 50,921
Fund Shares of Investor Class A ($.001 par
value--.25 billion shares authorized)
based on 816,460 outstanding shares ......... 8,378
Net Unrealized Depreciation of Investments .... (864)
Accumulated Net Realized Loss on Investments .. (1,001)
Net Overdistributed Investment Income ......... (4)
- ----------------------------------------------------------
Total Net Assets: (100.0%) ............... $57,430
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($49,293,757 (DIVIDE) 4,943,158
SHARES OUTSTANDING) ........................... $9.97
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS A
($8,135,988 (DIVIDE) 816,460
SHARES OUTSTANDING) ........................... $9.96
- ----------------------------------------------------------
OFFERING PRICE PER SHARE - INVESTOR CLASS A
($9.96 (DIVIDE) 96.5%) ........................ $10.32
==========================================================
(A) Floating Rate Security--the rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1996. The date reported on the Statement
of Net Assets is the later of the date on which the security can be
redeemed at par or the next date on which the rate of interest is adjusted.
(B) Security backed by letter of credit or credit support.
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax
ETM--Escrowed to Maturity
FGIC--Federal Guaranty Insurance Company
FSA--Financial Securities Assurance, Inc.
GO--General Obligation
MBIA--Municipal Bond Investors Assurance
RB--Revenue Bond
Ser--Series
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (95.9%)
VIRGINIA (95.9%)
Albemarle County, VA Industrial
Development Authority Martha Jefferson
Hospital Project, RB
5.350%, 10/01/03 ......................... $150 $150
Alexandria, VA Industrial Development
Authority Potomac Electric Project,
RB, Callable 02/15/04 @ 102 MBIA
5.375%, 02/15/24 ......................... 250 230
Alexandria, VA Redevelopment & Housing
Authority Buckingham Village Apartments
Project, RB Callable 01/01/06 @ 102
6.050%, 07/01/16 ......................... 250 246
Arlington County, VA Public
Improvements, GO, Callable
06/01/05 @ 101.50
5.400%, 06/01/12 ......................... 250 245
Arlington County, VA Industrial Development
Authority Arlington Hospital Facility
Project, RB, Callable 09/01/03 @ 102 AMBAC
5.000%, 09/01/21 ......................... 200 171
Bedford, VA Electric System, RB, Callable
06/01/04 @ 102 AMBAC
5.250%, 06/01/25 ......................... 250 228
Big Stone Gap, VA Wallens Ridge
Development Project, RB
Callable 09/01/05 @ 102
5.500%, 09/01/15 ......................... 250 234
Chesapeake Bay, VA Bridge & Tunnel
Improvements Project, RB, Callable
07/01/05 @ 102 FGIC
5.500%, 07/01/05 ......................... 150 152
Chesapeake, VA Refunding Bond, GO
5.250%, 12/01/06 ......................... 250 249
Chesterfield County, VA, Ser A, GO,
Prerefunded 01/15/00 @ 102
6.750%, 01/15/10 ......................... 200 217
Danville, VA, GO, Callable 04/01/03 @ 102
5.600%, 04/01/09 (B) ..................... 150 149
Fairfax County, VA Industrial Development
Authority Inova Health System
Project, RB
5.250%, 08/15/19 ......................... 500 453
Fairfax County, VA Refunding Bond, Ser C,
GO, Callable 10/01/99 @ 101.25
5.600%, 10/01/04 (B) ..................... 150 155
Fairfax County, VA Water Authority,
RB AMBAC
6.000%, 04/01/22 ......................... 250 248
Frederick-Winchester, VA Service Authority
Regional Sewer System Project, RB,
Callable 10/01/03 @ 102 AMBAC
5.750%, 10/01/10 ......................... 150 149
Hampton Roads, VA Sanitation District
Wastewater Capital Improvements
Project, RB, Callable 10/01/03 @ 102
4.700%, 10/01/04 ......................... 250 243
Face Market
Amount Value
(000) (000)
------ ------
Hanover County, VA Water & Sewer
System, RB MBIA
5.250%, 02/01/16 Callable 02/01/06 @ 102 . $250 $232
5.250%, 02/01/26 .......................... 250 225
Henrico County, VA Public Improvements,
GO, Callable 01/15/03 @ 102
5.200%, 01/15/07 ......................... 250 249
James City County, VA Public Improvements,
GO, Callable 12/15/05 @ 102 FGIC
5.250%, 12/15/14 (B) ..................... 250 231
Leesburg, VA Public Improvements,
GO, Callable 06/01/05 @ 102 AMBAC
5.400%, 06/01/10 ......................... 250 245
Loudoun County, VA, GO, Callable
06/01/06 @ 102
5.600%, 06/01/10 (B) ..................... 250 249
Loudoun County, VA Sanitation Authority
Water & Sewer, RB FGIC
Callable 01/01/03 @ 102
6.250%, 01/01/16 ......................... 150 156
Lynchburg, VA Public Improvements, GO,
Callable 04/01/03 @ 102
5.000%, 04/01/12 (B) ..................... 200 184
Newport News, VA Public Improvements,
Ser A, GO, Callable 07/01/05 @ 102 MBIA
5.500%, 07/01/12 (B) ..................... 250 243
Norfolk, VA GO Callable 06/01/06 @ 101
5.250%, 06/01/09 (B) ..................... 250 244
Norfolk, VA MN
3.500%, 01/01/99 (A) ..................... 150 150
Norfolk, VA Public Improvements, GO, Callable
06/01/05 @ 101 MBIA
5.750%, 06/01/12 ......................... 150 149
Norfolk, VA Redevelopment & Housing
Authority, Tidewater Community College
Project, RB Callable 11/01/05 @ 102
5.875%, 11/01/15 ......................... 100 100
Petersburg, VA Public Improvements, GO,
Callable 07/15/04 @ 102 FGIC
5.750%, 07/15/14 ......................... 150 145
Portsmouth, VA Public Improvements,
GO FGIC Prerefunded 08/01/00 @ 102
5.250%, 08/01/21 (B) ..................... 500 454
Prince William County, VA Water & Sewer
System, RB, Prerefunded 07/01/01
@ 102 FGIC
6.500%, 07/01/21 ......................... 250 274
Richmond, VA Public Improvements,
Ser B, GO Callable 01/15/01 @ 102
6.250%, 01/15/18 ......................... 150 152
Richmond, VA Refunding Bond, Ser B,
GO FGIC Callable 01/15/06 @ 102
5.000%, 01/15/21 (B) ..................... 250 215
Richmond, VA Metropolitan Expressway
Authority, Ser A, RB, Callable 07/15/02
@ 100 FGIC
5.750%, 07/15/22 ......................... 250 240
Rivanna, VA Water & Sewer System, RB
Callable 10/01/03 @ 101.5
4.800%, 10/01/15 ......................... 250 213
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (continued)
VIRGINIA (continued)
Riverside, VA Regional Jail Authority Jail
Facilities Project, RB, Callable
07/01/05 @ 102 MBIA
6.000%, 07/01/25 ........................... $250 $250
Roanoke, VA Public Improvements
Project, GO, Callable 08/01/04 @ 102
5.150%, 08/01/12 ........................... 250 233
Spotsylvania County, VA Public
Improvements Project, GO, Callable
07/15/02 @ 102
5.875%, 07/15/10 ........................... 150 152
Stafford County, VA Water & Sewer System,
RB, Callable 06/01/03 @ 102 FGIC
5.250%, 06/01/12 ........................... 250 236
University of Virginia, Ser A, RB, Callable
06/01/03 @ 102
5.200%, 06/01/15 ........................... 200 184
Upper Occoquan, VA Sewer Authority, RB,
Ser A MBIA
5.000%, 07/01/15 ........................... 250 224
Upper Occoquan, VA Sewer Authority,
RB, FGIC Callable 07/01/06 @ 102
5.000%, 07/01/21 ........................... 150 132
Virginia Beach, VA Refunding Bond, GO
5.450%, 07/15/11 ........................... 200 197
Virginia Beach, VA Sentara Bayside Hospital
Project, RB, Callable 11/01/01 @ 102
6.300%, 11/01/21 ........................... 150 151
Virginia College Building Authority,
Washington & Lee University Project,
RB, Callable 01/01/04 @ 102
5.800%, 01/01/24 ........................... 150 144
Virginia College Building Authority
University of Richmond Project, RB,
Callable 11/01/99 @ 101
6.400%, 11/01/22 ........................... 150 157
Virginia State Housing Development
Authority Commonwealth Meeting,
Ser A-4, AMT, RB MBIA Callable 01/01/06 @ 102
6.350%, 07/01/18 (B) ....................... 150 151
Virginia State Public Building Authority, RB,
Callable 08/01/05 @ 101
5.200%, 08/01/16 ........................... 300 275
Virginia State Public School Authority, Ser A,
RB, Callable 08/01/04 @ 102
6.125%, 08/01/08 (B) ....................... 100 105
Virginia State Public School Authority
Special Obligation Bond For York County,
Callable 07/15/04 @ 102
5.900%, 07/15/13 (B) ....................... 150 151
Virginia State University Construction
Improvements, Ser A, GO, Callable
06/01/03 @ 102
5.000%, 06/01/06 ........................... 450 444
Virginia State Transportation Board Contract
U.S. Route 58 Corridor Project, Ser PG-A, RB,
Callable 05/15/03 @ 102
5.400%, 05/15/08 ........................... 150 148
Face Market
Amount Value
(000) (000)
------ ------
West Point, VA Industrial Development
Authority Solid Waste Disposal
Chesapeake Corporation Project,
Ser B, RB, Callable 03/01/04 @ 102
6.250%, 03/01/19 ......................... $150 $ 149
- --------------------------------------------------------------
Total Municipal Bonds
(Cost $11,672,258) ................... 11,352
- --------------------------------------------------------------
CASH EQUIVALENTS (6.6%)
Aim Tax Free Institutional Cash Reserve ..... 222 222
Federated Virginia Municipal Cash Trust ..... 561 561
- --------------------------------------------------------------
Total Cash Equivalents
(Cost $783,260) ............................ 783
- --------------------------------------------------------------
Total Investments (102.5%)
(Cost $12,455,518) ......................... 12,135
- --------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-2.5%)
Other Assets and Liabilities, Net ................. (299)
- --------------------------------------------------------------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
.75 billion shares authorized) based
on 1,128,948 outstanding shares ................. 11,473
Fund Shares of Investor Class B ($.001 par
value--.125 billion shares authorized)
based on 64,448 outstanding shares .............. 652
Net Unrealized Depreciation of Investments ........ (320)
Accumulated Net Realized Gain on Investments ...... 31
- --------------------------------------------------------------
Total Net Assets: (100.0%) ................... $11,836
- --------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($11,195,032 (DIVIDE) 1,128,948
SHARES OUTSTANDING) ............................... $9.92
- --------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS A
($640,835 (DIVIDE) 64,448 SHARES OUTSTANDING) ..... $9.94
==============================================================
(A) Floating Rate Security--the rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1996. The date reported on the Statement
of Net Assets is the later of the date on which the security can be
redeemed at par or the next date on which the rate of interest is adjusted.
(B) Security is backed by letter of credit or credit support.
AMBAC--American Municipal Bond Assurance Corporation
FGIC--Financial Guaranty Insurance Company
GO--General Obligation
MBIA--Municipal Bond Investors Assurance
MN--Master Note
RB--Revenue Bond
Ser--Series
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
MARYLAND MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (94.2%)
MARYLAND (94.2%)
Anne Arundel County, MD Public
Improvements, GO, Callable
02/01/04 @ 101.50
4.600%, 02/01/06 ......................... $250 $236
Baltimore County, MD Metropolitan District
Water Utility Improvements, Ser 64, GO,
Callable 08/01/03 @ 102
5.000%, 08/01/13 ......................... 100 92
Baltimore, MD Water Projects, Ser A,
RB, FGIC
5.000%, 07/01/24 ......................... 100 87
Calvert County, MD Pollution Control
Revenue, Baltimore Gas & Electric
Company Project, RB, Callable
07/15/04 @ 102
5.550%, 07/15/14 ......................... 150 143
Harford County, MD Refunding Bond, GO,
Callable 12/01/03 @ 102
4.900%, 12/01/12 ......................... 100 90
Howard County, MD Public Improvements,
Ser A, GO Callable 02/15/05 @ 101
5.650%, 02/15/16 ......................... 100 97
Maryland Lease MN
3.500%, 06/06/96 (A) ..................... 100 100
Maryland State Community Development
Administration, Multi-Family Housing
Project, Ser B, RB Callable 05/15/05 @ 102
5.650%, 05/15/15 (B) ..................... 115 110
Maryland State Health & Higher Educational
Facilities Authority, Good Samaritan
Hospital Project, RB Callable 07/01/13 @ 102
5.750%, 07/01/19 ......................... 100 96
Maryland State Health & Higher Educational
Facilities Authority, Suburban Hospital
Project, RB, FGIC Callable 07/01/03 @ 102
5.125%, 07/01/21 ......................... 100 89
Maryland State Health & Higher Educational
Facilities Authority, John Hopkins Medical
Institution Project, RB, AMBAC
4.600%, 07/01/01 ......................... 100 99
Maryland State Industrial Development
Authority, Holy Cross Health System
Project, RB Callable 12/01/03 @ 102
5.500%, 12/01/15 ......................... 100 92
Maryland State Public Improvements,
Ser 1, GO, Callable 02/15/06 @ 101.50
4.700%, 02/15/10 ......................... 400 357
Maryland State Transportation Authority,
Transportation Facilities Project, RB, ETM
6.800%, 07/01/16 ......................... 120 130
Face Market
Amount Value
(000) (000)
------ ------
Montgomery County, MD Refunding Bond,
Ser A, GO
5.800%, 07/01/07 ......................... $ 500 $ 518
Montgomery County, MD Community
Housing Authority, Multi-Family
Housing Project, Ser A, RB
Callable 07/01/05 @ 102
6.000%, 07/01/20 (B) ..................... 100 99
Montgomery County, MD Pollution Control
Revenue, Potomac Electric Power
Company Project, RB, Callable
02/15/04 @ 102
5.375%, 02/15/24 ......................... 100 90
Ocean City, MD Refunding Bond, GO, MBIA
4.500%, 10/15/05 ......................... 100 94
Prince Georges County, MD Water Utility
Improvements, Stormwater Management
Project, GO Callable 03/15/03 @ 102
5.500%, 03/15/13 ......................... 100 96
University of Maryland, Auxiliary Facilities
Project, Ser A, RB, Callable 04/01/05 @ 102
5.400%, 04/01/09 ......................... 100 98
Washington County, MD Refunding Bond,
GO, Callable 01/01/03 @ 102 FGIC
5.250%, 01/01/07 ......................... 100 99
Washington Suburban Sanitation District,
MD Refunding Bond, GO, Callable
06/01/04 @ 102
5.000%, 06/01/14 ......................... 100 90
Worcester County, MD Refunding Bond,
GO, Callable 08/01/06 @ 101 MBIA
5.500%, 08/01/12 ......................... 100 99
- ---------------------------------------------------------------
Total Municipal Bonds
(Cost $3,255,330) .................... 3,101
- ---------------------------------------------------------------
CASH EQUIVALENTS (4.5%)
Aim Tax Free Institutional Cash Reserve ..... 34 34
Federated Maryland Municipal Cash Trust ..... 113 113
- ---------------------------------------------------------------
Total Cash Equivalents
(Cost $147,326) ...................... 147
- ---------------------------------------------------------------
Total Investments (98.7%)
(Cost $3,402,656) .................... 3,248
- ---------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.3%)
Other Assets and Liabilities, Net ........... 43
- ---------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
MARYLAND MUNICIPAL BOND FUND (concluded)
Market
Value
(000)
------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--.9 billion)
based on 347,669 outstanding shares ................ $3,440
Fund Shares of Investor Class B ($.001 par value--
50 million) based on 1,265 outstanding shares ...... 12
Net Unrealized Depreciation of Investments ........... (155)
Accumulated Net Realized Loss on Investments ......... (7)
Net Undistributed Investment Income .................. 1
- --------------------------------------------------------------
Total Net Assets: (100.0%) ...................... $3,291
- --------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
(3,278,633 (DIVIDE) 347,669
SHARES OUTSTANDING) .................................. $9.43
- --------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS B
($11,930 (DIVIDE) 1,265 SHARES OUTSTANDING) .......... $9.43
==============================================================
(A) Floating Rate Security--the rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1996. The date reported on the Statement
of Net Assets is the later of the date on which the security can be
redeemed at par or the next date on which the rate of interest is adjusted.
(B) Security backed by letter of credit or credit support.
AMBAC--American Municipal Bond Assurance Corporation
ETM--Escrowed to Maturity
FGIC--Federal Guaranty Insurance Company
GO--General Obligation
MBIA--Municipal Bond Investors Assurance
MN--Master Note
RB--Revenue Bond
Ser--Series
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
VALUE FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (98.1%)
AIR TRANSPORTATION (1.1%)
AMR* ........................................... 40,000 $ 3,775
- -------------------------------------------------------------------
AIRCRAFT (1.4%)
General Dynamics ............................... 75,000 4,622
- -------------------------------------------------------------------
AUTOMOTIVE (3.5%)
Federal Mogul .................................. 150,000 2,756
General Motors ................................. 70,000 3,859
Goodyear Tire & Rubber ......................... 90,000 4,545
- -------------------------------------------------------------------
11,160
- -------------------------------------------------------------------
BANKS (6.4%)
Banc One ....................................... 110,000 4,070
BankAmerica .................................... 70,000 5,267
Bankers Trust New York ......................... 100,000 7,513
Fleet Financial Group .......................... 95,000 4,192
- -------------------------------------------------------------------
21,042
- -------------------------------------------------------------------
CHEMICALS (2.1%)
Dow Chemical ................................... 85,000 7,108
- -------------------------------------------------------------------
COMPUTERS & SERVICES (6.7%)
Digital Equipment* ............................. 125,000 6,516
Intel .......................................... 45,000 3,392
Storage Technology* ............................ 160,000 5,480
Tandem Computers* .............................. 550,000 6,875
- -------------------------------------------------------------------
22,263
- -------------------------------------------------------------------
CONSTRUCTION (1.7%)
Foster Wheeler ................................. 130,000 5,785
- -------------------------------------------------------------------
DIVERSIFIED (3.5%)
Loews .......................................... 70,000 5,582
Tenneco ........................................ 110,000 5,913
- -------------------------------------------------------------------
11,495
- -------------------------------------------------------------------
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT (5.4%)
AMP ............................................ 105,000 4,423
General Motors, Cl H ........................... 60,000 3,645
Motorola ....................................... 75,000 5,006
W.W. Grainger .................................. 68,000 4,548
- -------------------------------------------------------------------
17,622
- -------------------------------------------------------------------
ENERGY SERVICES (3.2%)
Dresser Industries ............................. 250,000 7,312
Schlumberger ................................... 40,000 3,335
- -------------------------------------------------------------------
10,647
- -------------------------------------------------------------------
Market
Value
Shares (000)
------- ------
ENVIRONMENTAL SERVICES (1.9%)
WMX Technologies ................. 175,000 $ 6,169
- ------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (5.6%)
Hershey Foods .................... 40,000 2,910
RJR Nabisco Holdings ............. 175,000 5,797
Sara Lee ......................... 175,000 5,841
U.S.T ............................ 120,000 3,960
- ------------------------------------------------------
18,508
- ------------------------------------------------------
HOUSEHOLD PRODUCTS (2.8%)
Singer N.V ....................... 95,000 1,959
Tupperware* ...................... 150,000 6,863
- ------------------------------------------------------
8,822
- ------------------------------------------------------
INSURANCE (5.7%)
Cigna ............................ 60,000 6,892
Torchmark ........................ 125,000 5,328
Travelers ........................ 127,500 5,291
Travelers/Aetna Property Casualty* 50,000 1,363
- ------------------------------------------------------
18,874
- ------------------------------------------------------
MACHINERY (1.7%)
Giddings & Lewis ................. 250,000 4,125
Ingersoll Rand ................... 38,800 1,634
- ------------------------------------------------------
5,759
- ------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (8.6%)
American Home Products ........... 80,000 4,280
Bristol-Myers Squibb ............. 70,000 5,976
Schering Plough .................. 85,000 4,983
United States Surgical ........... 225,000 7,706
U.S. Healthcare .................. 100,000 5,413
- ------------------------------------------------------
28,358
- ------------------------------------------------------
METALS & MINING (3.7%)
Alumax* .......................... 225,000 7,481
LTV* ............................. 375,000 4,828
- ------------------------------------------------------
12,309
- ------------------------------------------------------
PAPER & PAPER PRODUCTS (2.2%)
Westvaco ......................... 225,000 7,200
- ------------------------------------------------------
PETROLEUM REFINING (6.3%)
Amoco ............................ 60,000 4,350
Exxon ............................ 55,000 4,661
Mobil ............................ 55,000 6,208
Union Texas Petroleum ............ 300,000 5,588
- ------------------------------------------------------
20,807
- ------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
VALUE FUND (concluded)
Shares/
Face Market
Amount Value
(000) (000)
------ ------
COMMON STOCKS (continued)
PHOTOGRAPHIC EQUIPMENT & SUPPLIES (1.3%)
Eastman Kodak ........................... 60,000 $ 4,463
- --------------------------------------------------------------
PRINTING & PUBLISHING (1.6%)
Tribune ................................. 70,000 5,189
- --------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST (0.5%)
Equity Residential Properties Trust ..... 56,800 1,761
- --------------------------------------------------------------
RETAIL (8.3%)
Albertson's ............................. 110,000 4,386
Circuit City ............................ 140,000 4,568
Dillard Department Stores ............... 215,000 8,600
The Limited ............................. 200,000 4,150
Toys R Us* .............................. 200,000 5,800
- --------------------------------------------------------------
27,504
- --------------------------------------------------------------
SAVINGS AND LOANS (1.9%)
H.F. Ahmanson ........................... 250,000 6,437
- --------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (4.5%)
Ameritech ............................... 80,000 4,520
AT&T .................................... 85,000 5,302
MCI Communications ...................... 175,000 5,075
- --------------------------------------------------------------
14,897
- --------------------------------------------------------------
TRANSPORTATION SERVICES (1.3%)
CSX ..................................... 85,000 4,207
- --------------------------------------------------------------
TRUCKING (0.4%)
Ryder System ............................ 50,000 1,462
- --------------------------------------------------------------
UTILITIES, ELECTRIC, & GAS (4.8%)
Boston Edison ........................... 100,000 2,450
Consolidated Natural Gas ................ 100,000 4,838
Texas Utilities ......................... 125,000 5,109
Unicom .................................. 125,000 3,453
- --------------------------------------------------------------
15,850
- --------------------------------------------------------------
Total Common Stocks
(Cost $290,678,580) .............. 324,095
- --------------------------------------------------------------
CASH EQUIVALENT (2.2%)
Aim Liquid Assets Portfolio ............. $ 7,404 7,404
- --------------------------------------------------------------
Total Cash Equivalent
(Cost $7,404,121) ................ 7,404
- --------------------------------------------------------------
Total Investments (100.3%)
(Cost $298,082,701) .............. 331,499
- --------------------------------------------------------------
Market
Value
(000)
------
OTHER ASSETS AND LIABILITIES (-0.3%)
Other Assets and Liabilities, Net .............. $ (852)
- --------------------------------------------------------------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
1 billion shares authorized) based
on 24,200,842 outstanding shares ............. 264,362
Fund Shares of Investor Class A ($.001 par
value--.25 billion shares authorized)
based on 1,213,438 outstanding shares ........ 13,771
Fund Shares of Investor Class B ($.001 par
value--.25 billion shares authorized)
based on 262,924 outstanding shares .......... 3,165
Net Unrealized Appreciation of Investments ..... 33,416
Accumulated Net Realized Gain on Investments ... 15,725
Net Undistributed Investment Income ............ 208
- --------------------------------------------------------------
Total Net Assets: (100.0%) ................ $330,647
- --------------------------------------------------------------
NET ASSET VALUE, OFFER PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($311,544,335 (DIVIDE) 24,200,842
SHARES OUTSTANDING) ............................ $12.87
- --------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS A
($15,705,773 (DIVIDE) 1,213,438
SHARES OUTSTANDING) ............................ $12.94
- --------------------------------------------------------------
OFFERING PRICE PER SHARE--INVESTOR CLASS A
($12.94 (DIVIDE) 95.5%) ........................ $13.55
- --------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS B
($3,397,036 (DIVIDE) 262,924
SHARES OUTSTANDING) ............................ $12.92
==============================================================
* Non-income producing security.
Cl--Class
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (95.7%)
AEROSPACE & DEFENSE (1.6%)
Textron ........................................ 5,300 $ 449
- ------------------------------------------------------------------
BANKS (0.9%)
Chase Manhattan Bank ........................... 3,700 259
- ------------------------------------------------------------------
BUILDING & CONSTRUCTION (1.0%)
Medusa ......................................... 9,500 291
- ------------------------------------------------------------------
CHEMICALS (3.3%)
Eastman Chemical ............................... 7,100 476
Union Carbide* ................................. 10,800 466
- ------------------------------------------------------------------
942
- ------------------------------------------------------------------
COMMUNICATIONS (3.3%)
A.H. Belo, Ser A ............................... 12,000 459
Clear Channel Communications* .................. 6,000 488
- ------------------------------------------------------------------
947
- ------------------------------------------------------------------
COMPUTERS & SERVICES (12.3%)
Bay Networks* .................................. 15,800 458
BMC Software* .................................. 10,000 630
Gateway 2000* .................................. 14,500 547
Intel .......................................... 7,500 565
Microsoft* ..................................... 3,000 356
Seagate Technology* ............................ 8,500 499
Sybase* ........................................ 21,600 494
- ------------------------------------------------------------------
3,549
- ------------------------------------------------------------------
COSMETICS, SOAPS & TOILETRIES (2.1%)
Procter & Gamble ............................... 7,000 615
- ------------------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (6.8%)
Cypress Semiconductor * ........................ 20,000 275
General Electric ............................... 6,800 563
Motorola ....................................... 9,600 641
W.W. Grainger .................................. 7,400 495
- ------------------------------------------------------------------
1,974
- ------------------------------------------------------------------
ENERGY SERVICES (1.4%)
Dresser ........................................ 13,500 395
- ------------------------------------------------------------------
FINANCIAL SERVICES (2.2%)
American Express ............................... 5,200 238
FNMA ........................................... 12,600 389
- ------------------------------------------------------------------
627
- ------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (9.9%)
Coca Cola ...................................... 9,000 414
CPC International .............................. 8,200 567
Conagra ........................................ 9,100 388
Hershey Foods .................................. 5,400 393
Nabisco Holdings, Cl A ......................... 10,200 345
Philip Morris .................................. 3,600 358
Sara Lee ....................................... 12,700 424
- ------------------------------------------------------------------
2,889
- ------------------------------------------------------------------
Market
Value
Shares (000)
------ ------
FOOTWEAR (1.3%)
Nike, Cl B ............................. 3,600 $ 361
- ----------------------------------------------------------
INSURANCE (5.0%)
AMBAC .................................. 5,000 259
American Financial ..................... 7,000 210
American International Group ........... 3,800 358
General RE ............................. 2,600 380
Life RE ................................ 8,000 244
- ----------------------------------------------------------
1,451
- ----------------------------------------------------------
MANUFACTURING (2.9%)
Illinois Tool Works .................... 5,850 392
Minnesota Mining & Manufacturing ....... 6,500 443
- ----------------------------------------------------------
835
- ----------------------------------------------------------
MEASURING DEVICES (1.3%)
Thermo Electron* ....................... 5,700 363
- ----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (14.1%)
Amgen* ................................. 3,000 178
Biogen* ................................ 2,700 163
Genzyme* ............................... 2,000 116
Guidant ................................ 6,500 377
Johnson & Johnson ...................... 4,000 389
Merck .................................. 7,000 452
Rhone Poulenc Rorer .................... 10,000 648
Sun Healthcare* ........................ 26,500 391
Tenet Healthcare* ...................... 18,500 398
United States Surgical ................. 17,500 599
Watson Pharmaceuticals* ................ 8,000 360
- ----------------------------------------------------------
4,071
- ----------------------------------------------------------
METALS & MINING (1.1%)
AK Steel Holding ....................... 7,000 303
- ----------------------------------------------------------
PAPER & PAPER PRODUCTS (1.6%)
International Paper .................... 11,900 475
- ----------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (3.7%)
Chesapeake Energy* ..................... 3,800 292
Phillips Petroleum ..................... 9,600 398
Tidewater .............................. 9,000 371
- ----------------------------------------------------------
1,061
- ----------------------------------------------------------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES (1.3%)
Eastman Kodak .......................... 5,100 379
- ----------------------------------------------------------
PROFESSIONAL SERVICES (1.0%)
Medaphis* .............................. 8,000 300
- ----------------------------------------------------------
RECREATIONAL PRODUCTS & SERVICES (2.5%)
Carnival Cruise Lines, Cl A ............ 13,000 387
Grand Casinos* ......................... 9,500 333
- ----------------------------------------------------------
720
- ----------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND (concluded)
Shares/
Face Market
Amount Value
(000) (000)
------ ------
COMMON STOCKS (continued)
RETAIL (7.5%)
Home Depot .............................. 5,800 $ 297
May Department Stores ................... 8,700 412
Nordstrom ............................... 9,300 471
Sears Roebuck ........................... 9,400 478
Toys R Us* .............................. 17,300 502
- -------------------------------------------------------------
2,160
- -------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (5.7%)
Airtouch Communications* ................ 8,600 274
AT&T .................................... 9,000 561
MCI Communications ...................... 15,050 436
Worldcom* ............................... 7,400 360
- -------------------------------------------------------------
1,631
- -------------------------------------------------------------
TRANSPORTATION (0.9%)
Burlington Northern Santa Fe ............ 3,100 263
- -------------------------------------------------------------
UTILITIES, ELECTRIC, & GAS (1.0%)
Consolidated Natural Gas ................ 6,000 290
- -------------------------------------------------------------
Total Common Stocks
(Cost $24,712,068) ............... 27,600
- -------------------------------------------------------------
CASH EQUIVALENT (4.2%)
Aim Liquid Assets Portfolio ............. $ 1,199 1,199
- -------------------------------------------------------------
Total Cash Equivalent
(Cost $1,198,935) ................ 1,199
- -------------------------------------------------------------
Total Investments (99.9%)
(Cost $25,911,003) ............... 28,799
- -------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.1%)
Other Assets and Liabilities, Net ....... 28
- -------------------------------------------------------------
Market
Value
(000)
-----
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
.75 billion shares authorized)
based on 1,969,481 outstanding shares ........ $20,753
Fund Shares of Investor Class A ($.001 par
value--.25 billion shares authorized)
based on 350,174 outstanding shares .......... 3,736
Net Unrealized Appreciation of Investments ..... 2,888
Accumulated Net Realized Gain on Investments ... 1,445
Net Undistributed Investment Income ............ 5
- ---------------------------------------------------------
Total Net Assets: (100.0%) ................ $28,827
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE - TRUST CLASS
($24,512,467 (DIVIDE) 1,969,481
SHARES OUTSTANDING) ............................ $12.45
- ---------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE - INVESTOR CLASS A
($4,314,998 (DIVIDE) 350,174
SHARES OUTSTANDING) ............................ $12.32
- ---------------------------------------------------------
OFFERING PRICE PER SHARE - INVESTOR CLASS A
($12.32 (DIVIDE) 95.5%) ........................ $12.90
=========================================================
* Non-income producing security.
Cl--Class
Ser--Series
FNMA--Federal National Mortgage Association
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
SPECIAL EQUITY FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (97.7%)
AEROSPACE & DEFENSE (1.0%)
Tracor* ................................. 35,000 $ 731
- -----------------------------------------------------------
AIRCRAFT (0.7%)
Flightsafety International .............. 9,000 496
- -----------------------------------------------------------
APPAREL/TEXTILES (0.4%)
Cone Mills* ............................. 25,000 291
- -----------------------------------------------------------
AUTOMOTIVE (3.1%)
Arvin Industries ........................ 25,000 613
Breed Technologies ...................... 30,000 675
Custom Chrome* .......................... 12,000 313
Lear Seating* ........................... 15,000 579
- -----------------------------------------------------------
2,180
- -----------------------------------------------------------
BANKS (4.3%)
Central Fidelity Banks .................. 15,000 514
First Tennessee National ................ 20,000 673
Southern National ....................... 20,000 585
SouthTrust .............................. 20,000 547
Union Planters .......................... 10,000 306
Wilmington Trust ........................ 10,000 330
- -----------------------------------------------------------
2,955
- -----------------------------------------------------------
BUILDING & CONSTRUCTION SUPPLIES (1.3%)
Centex Construction Products ............ 20,000 283
Martin Marietta Materials ............... 27,000 651
- -----------------------------------------------------------
934
- -----------------------------------------------------------
CHEMICALS (4.6%)
A. Schulman ............................. 15,000 386
Aceto ................................... 38,500 577
Calgon Carbon ........................... 50,000 644
Crompton & Knowles ...................... 25,000 441
Ethyl ................................... 20,000 207
Learonal ................................ 20,000 563
WD-40 ................................... 10,000 475
- -----------------------------------------------------------
3,293
- -----------------------------------------------------------
COMMUNICATIONS EQUIPMENT (5.4%)
B.I.* ................................... 45,000 720
Dialogic * .............................. 20,000 1,065
Digi International* ..................... 31,000 868
Ortel* .................................. 50,000 1,213
- -----------------------------------------------------------
3,866
- -----------------------------------------------------------
COMPUTER SOFTWARE (1.6%)
Phoenix Technologies* ................... 30,000 593
Structural Dynamics Research * .......... 20,000 570
- -----------------------------------------------------------
1,163
- -----------------------------------------------------------
Market
Value
Shares (000)
------ ------
COMPUTERS & SERVICES (3.3%)
Exabyte * .................................... 15,500 $ 302
Innovex ...................................... 30,000 506
LCS Industries ............................... 30,000 495
Verifone* .................................... 20,000 1,008
- ----------------------------------------------------------------
2,311
- ----------------------------------------------------------------
CONSUMER PRODUCTS (1.1%)
Cross A.T., Cl A ............................. 20,000 320
Stride Rite .................................. 50,000 450
- ----------------------------------------------------------------
770
------------------------------------------------------------
DRUGS (1.0%)
Mylan Laboratories ........................... 35,000 665
- ----------------------------------------------------------------
ELECTRICAL SERVICES (1.3%)
Central Maine Power .......................... 35,000 468
Public Service of New Mexico ................. 25,000 469
- ----------------------------------------------------------------
937
- ----------------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (1.8%)
Methode Electronics, Cl A .................... 20,000 345
SCI Systems* ................................. 10,000 450
Vicor* ....................................... 20,000 445
- ----------------------------------------------------------------
1,240
- ----------------------------------------------------------------
ENERGY SERVICES (2.0%)
AES* ......................................... 40,000 1,100
Destic Energy * .............................. 25,000 338
- ----------------------------------------------------------------
1,438
- ----------------------------------------------------------------
ENVIRONMENTAL SERVICES (0.5%)
Met-Pro ...................................... 20,000 380
------------------------------------------------------------
FINANCIAL SERVICES (1.2%)
A.G. Edwards ................................. 15,000 384
SPS Transaction Services* .................... 19,000 492
- ----------------------------------------------------------------
876
- ----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (2.9%)
International Multifoods ..................... 16,400 326
Schweitzer-Manduit International* ............ 40,000 1,120
Triarc, CI A* ................................ 50,000 612
- ----------------------------------------------------------------
2,058
- ----------------------------------------------------------------
GAS/NATURAL GAS (2.5%)
Public Service of North Carolina ............. 30,000 484
UGI .......................................... 25,000 578
USX-Delhi Group .............................. 50,000 687
- ----------------------------------------------------------------
1,749
- ----------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
SPECIAL EQUITY FUND (continued)
Market
Value
Shares (000)
------ ------
COMMON STOCKS (continued)
HOUSEHOLD PRODUCTS (0.4%)
Singer NV .............................. 13,500 $ 278
- ----------------------------------------------------------
INSURANCE (6.2%)
Crawford, Cl A ......................... 20,000 327
First Colony ........................... 40,000 1,050
Home Beneficial, Cl B .................. 20,000 500
Life Re ................................ 35,000 1,068
Penn-American Group .................... 20,000 310
Travelers/Aetna Property Casualty* ..... 12,500 341
USF & G ................................ 30,000 480
USLife ................................. 11,250 337
- ----------------------------------------------------------
4,413
- ----------------------------------------------------------
MACHINERY (6.8%)
Agco ................................... 13,000 392
BWIP Holding, Cl A ..................... 35,000 691
Giddings & Lewis ....................... 20,000 330
Global Industries Technologies* ........ 25,000 463
Kaydon ................................. 18,000 774
Kennametal ............................. 15,000 557
Regal Beloit ........................... 20,000 415
Newcor ................................. 50,000 537
Zero ................................... 30,000 641
- ----------------------------------------------------------
4,800
- ----------------------------------------------------------
MEASURING DEVICES (1.0%)
CEM* ................................... 30,000 405
Modern Controls ........................ 30,000 308
- ----------------------------------------------------------
713
- ----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (6.3%)
Avecor Cardiovascular* ................. 30,000 360
Haemonetics * .......................... 24,000 477
Life Technologies ...................... 30,000 908
Mid Atlantic Medical Services* ......... 25,000 478
Sterile Concepts Holdings .............. 20,000 460
Techne* ................................ 20,000 580
Vital Signs ............................ 50,000 1,200
- ----------------------------------------------------------
4,463
- ----------------------------------------------------------
PAPER & PAPER PRODUCTS (0.7%)
Consolidated Papers .................... 10,000 523
- ----------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (6.7%)
Benton Oil & Gas* ...................... 20,000 347
Box Energy, CI B* ...................... 35,000 346
Chieftan International* ................ 50,000 931
Global Marine * ........................ 75,000 919
Horsham ................................ 40,000 595
Nabors Industries* ..................... 50,000 769
Oceaneering International* ............. 50,000 825
- ----------------------------------------------------------
4,732
- ----------------------------------------------------------
Market
Value
Shares (000)
------ ------
PRECIOUS METALS (1.3%)
Agnico Eagle Mines ..................... 29,800 $ 596
AMAX Gold* ............................. 50,000 338
- ----------------------------------------------------------
934
- ----------------------------------------------------------
PRINTING & PUBLISHING (4.3%)
Cadmus Communications ............ 49,000 802
Golden Books Family Entertainment* 50,000 681
Jostens .......................... 30,000 679
Meredith ......................... 20,000 918
- ----------------------------------------------------
3,080
- ----------------------------------------------------
PROFESSIONAL SERVICES (1.2%)
E.G. & G ......................... 40,000 870
- ----------------------------------------------------
RECREATION (2.0%)
Callaway Golf .................... 40,000 1,205
Thor Industries .................. 10,000 217
- ----------------------------------------------------
1,422
- ----------------------------------------------------
RETAIL (3.2%)
Buckle* .......................... 20,000 715
S & K Famous Brands * ............ 60,000 518
Stein Mart* ...................... 25,000 425
Urban Outfitters* ................ 15,000 626
- ----------------------------------------------------
2,284
- ----------------------------------------------------
RESTAURANTS (1.1%)
Sbarro ........................... 30,000 799
- ----------------------------------------------------
SAVINGS & LOAN (2.6%)
H.F. Ahmanson .................... 30,000 773
JSB Financial .................... 15,000 497
Webster Financial ................ 20,000 572
- ----------------------------------------------------
1,842
- ----------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS (4.7%)
Helix Technology ................. 30,000 1,087
Kemet* ........................... 20,000 445
Lattice Semiconductor * .......... 30,000 1,039
Tencor Instruments* .............. 35,000 787
- ----------------------------------------------------
3,358
- ----------------------------------------------------
SPECIALTY MACHINERY (0.5%)
Modine Manufacturing ............. 15,000 379
- ----------------------------------------------------
STEEL & STEEL WORKS (1.8%)
Lukens ........................... 20,000 537
Reliance Steel & Aluminum ........ 20,000 750
- ----------------------------------------------------
1,287
- ----------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1996 Unaudited
- --------------------------------------------------------------------------------
SPECIAL EQUITY FUND (concluded)
Shares/
Face Market
Amount Value
(000) (000)
------- ------
COMMON STOCKS (continued)
TELEPHONES & TELECOMMUNICATION (2.2%)
U.S. Long Distance * ................... 20,000 $ 717
Xpedite Systems * ...................... 31,000 829
- ---------------------------------------------------------------
1,546
- ---------------------------------------------------------------
TRUCKING (0.8%)
Werner Enterprises ..................... 25,000 600
- ---------------------------------------------------------------
WHOLESALE (3.9%)
Lawson Products ........................ 20,000 450
Marshall Industries* ................... 20,000 627
Owens & Minor Holding .................. 42,600 532
Richfood Holdings, CI A ................ 20,000 670
Sterling Electronics* .................. 31,500 476
- ---------------------------------------------------------------
2,755
- ---------------------------------------------------------------
Total Common Stocks
(Cost $54,500,749) .............. 69,411
- ---------------------------------------------------------------
CASH EQUIVALENT (2.7%)
Aim Liquid Assets Portfolio ............ $ 1,898 1,898
- ---------------------------------------------------------------
Total Cash Equivalent
(Cost $1,897,733) ............... 1,898
- ---------------------------------------------------------------
Total Investments (100.4%)
(Cost $56,398,482) .............. 71,309
- ---------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.4%)
Other Assets and Liabilities, Net ...... (278)
- ---------------------------------------------------------------
Market
Value
(000)
-------
NET ASSETS:
Fund Shares of Trust Class ($.001 par value--
.75 billion shares authorized) based
on 4,529,154 outstanding shares ............. $50,183
Fund Shares of Investor Class A ($.001 par
value--.125 billion shares authorized)
based on 361,124 outstanding shares ......... 4,167
Fund Shares of Investor Class B ($.001 par
value--.125 billion shares authorized)
based on 60,975 outstanding shares .......... 723
Net Unrealized Appreciation of Investments .... 14,911
Accumulated Net Realized Gain on Investments .. 912
Net Undistributed Investment Income ........... 135
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $71,031
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--TRUST CLASS
($64,981,293 (DIVIDE) 4,529,154
SHARES OUTSTANDING) ........................... $14.35
- ---------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS A
($5,180,710 (DIVIDE) 361,124
SHARES OUTSTANDING) ........................... $14.35
- ---------------------------------------------------------
OFFERING PRICE PER SHARE--INVESTOR CLASS A
($14.35 (DIVIDE) 95.5%) ....................... $15.03
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INVESTOR CLASS B
($869,034 (DIVIDE) 60,975
SHARES OUTSTANDING) ........................... $14.25
=========================================================
* Non-income producing security.
Cl--Class
The accompanying notes are an integral part of the financial statements.
<PAGE>
[THIS PAGE LEFT INTENTIONALLY BLANK]
<PAGE>
STATEMENT OF OPERATIONS CRESTFUNDS, INC.
For the Period Ended May 31, 1996 Unaudited
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
(IN THOUSANDS)
----------------------------------------------------------------------
CASH RESERVE U.S. TREASURY TAX FREE LIMITED TERM INTERMEDIATE
FUND MONEY FUND MONEY FUND BOND FUND BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest Income: $15,439 $10,800 $3,250 $2,771 $ 3,253
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ........................... 1,116 798 362 227 302
Waiver of Investment Advisory Fees ................. -- -- -- -- --
Administrative Fees ................................ 418 299 136 68 76
Waiver of Administrative Fees ...................... -- -- -- -- --
Custodian/Transfer Agent Fees ...................... 254 180 82 41 45
Professional Fees .................................. 30 18 11 6 6
Director Fees ...................................... 5 4 2 1 1
Registration & Filing Fees ......................... 9 9 3 3 12
Insurance Expense .................................. 3 2 1 -- 1
Distribution Fees--Trust Class ..................... 382 299 134 67 74
Waiver of Distribution Fees--Trust Class ........... (382) (299) (134) (67) (74)
Distribution Fees--Investors Class A ............... 96 -- 3 1 1
Waiver of Distribution Fees--Investors Class A ..... (96) -- (3) (1) (1)
Distribution Fees--Investors Class B ............... -- -- -- -- --
Waiver of Distribution Fees--Investors Class B ..... -- -- -- -- --
Printing Fees 13 9 4 2 2
Miscellaneous Fees (4) (12) (3) 5 (2)
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses ................................... 1,844 1,317 598 353 443
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income ................................. 13,595 9,483 2,652 2,418 2,810
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized Gain on Investments ...................... 6 -- 394 67 365
- ---------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Depreciation
of Investments ..................................... -- -- -- (2,679) (5,921)
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss)
on Investments ..................................... 6 -- 394 (2,612) (5,556)
- ---------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets Resulting
from Operations .................................... 13,601 9,483 3,046 (194) (2,746)
===========================================================================================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF OPERATIONS CRESTFUNDS, INC.
For the Period Ended May 31, 1996 Unaudited
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(IN THOUSANDS)
-------------------------------------------------------------------------------------------
VIRGINIA
INTERMEDIATE VIRGINIA MARYLAND CAPITAL SPECIAL
GOVERNMENT MUNICIPAL MUNICIPAL MUNICIPAL VALUE APPRECIATION EQUITY
BOND FUND BOND FUND BOND FUND BOND FUND (1) FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Income: ......................... $ 434 $ 1,330 $ 253 $ 38 $ 186 $ 34 $ 64
Dividend Income: ......................... -- -- -- -- 3,291 152 440
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees .............. 40 137 29 5 1,081 97 236
Waiver of Investment Advisory Fees .... (7) -- (5) (4) -- -- --
Administrative Fees ................... 10 41 7 1 216 19 47
Waiver of Administrative Fees ......... (10) -- (7) (1) -- -- --
Custodian/Transfer Agent Fees ......... 6 25 4 2 131 12 28
Professional Fees ..................... 1 3 1 -- 18 2 4
Trustee Fees .......................... -- 1 -- -- 3 -- 1
Registration & Filing Fees ............ 2 3 1 1 23 1 2
Insurance Expense ..................... -- -- -- -- 1 -- --
Distribution Fees--Trust Class ........ 10 35 7 -- 204 17 43
Waiver of Distribution Fees--
Trust Class ......................... (10) (35) (7) -- (204) (17) (43)
Distribution Fees--Investors Class A .. -- 6 -- -- 11 3 4
Waiver of Distribution Fees--
Investors Class A ................... -- (6) -- -- (11) (3) (4)
Distribution Fees--Investors Class B .. 2 -- 3 -- 14 -- 4
Waiver of Distribution Fees--
Investors Class B ................... -- -- -- -- (5) -- (1)
Printing Fees ......................... -- 1 -- -- 6 1 1
Miscellaneous Fees .................... 5 3 3 -- (7) 11 7
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses ...................... 49 214 36 4 1,481 143 329
- ------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income ............... 385 1,116 217 34 1,996 43 175
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss)
on Investments ........................ 7 (56) 31 (7) 14,490 1,603 1,001
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
(Depreciation) of Investments ......... (827) (1,429) (535) (155) 15,464 1,966 9,839
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Realized and Unrealized
Gain (Loss) on Investments ............ (820) (1,485) (504) (162) 29,954 3,569 10,840
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets Resulting
from Operations ....................... (435) (369) (287) (128) 31,950 3,612 11,015
====================================================================================================================================
<FN>
(1) Commenced Operations on March 1, 1996.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
FOR THE SIX MONTH PERIOD ENDED MAY 31, 1996 (UNAUDITED) AND FOR THE PERIOD
ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
(IN THOUSANDS)
-----------------------------------------------------------------------------------
CASH RESERVE CASH RESERVE U.S. TREASURY U.S. TREASURY TAX FREE TAX FREE
FUND FUND MONEY FUND MONEY FUND MONEY FUND MONEY FUND
------------ ------------ ------------- ------------- ---------- -----------
12/01/95 12/01/94 12/01/95 12/01/94 12/01/95 12/01/94
TO 05/31/96 TO 11/30/95 TO 05/31/96 TO 11/30/95 TO 05/31/96 TO 11/30/95
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ..................... $ 13,595 $ 25,680 $ 9,483 $ 16,738 $ 2,652 $ 6,113
Net Realized Gain (Loss) on Investments ... 6 (14) -- -- 394 --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
From Operations ............................ 13,601 25,666 9,483 16,738 3,046 6,113
- ------------------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ............................... (12,428) (24,141) (9,483) (16,738) (2,623) (6,063)
Investors Class A ......................... (1,167) (1,537) -- -- (23) (50)
Investors Class B ......................... -- (1) -- -- -- --
Capital Gains
Trust Class ............................... -- -- -- -- (380) --
Investors Class A ......................... -- -- -- -- (4) --
Investors Class B ......................... -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions ..................... (13,595) (25,679) (9,483) (16,738) (3,030) (6,113)
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Assets ........................... 6 (13) -- -- 16 --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (All at $1.00 Per Share):
Trust Class:
Shares Issued ............................. 421,163 922,366 485,851 899,896 119,247 420,904
Shares Issued in Lieu of
Cash Distributions ..................... 414 815 79 217 -- --
Shares Redeemed ........................... (421,034) (780,499) (420,584) (849,136) (161,453) (376,174)
--------- --------- --------- --------- --------- ---------
Total Trust Class Transactions .......... 543 142,682 65,346 50,977 (42,206) 44,730
--------- --------- --------- --------- --------- ---------
Investor Class A:
Shares Issued ............................. 39,536 64,444 -- -- 2,101 4,744
Shares Issued in Lieu of
Cash Distributions ..................... 1,181 1,534 -- -- 28 50
Shares Redeemed ........................... (24,757) (37,548) -- -- (1,576) (3,923)
--------- --------- --------- --------- --------- ---------
Total Investor Class A Transactions ..... 15,960 28,430 -- -- 553 871
--------- --------- --------- --------- --------- ---------
Investor Class B:
Shares Issued ............................. -- 29 -- -- -- --
Shares Issued in Lieu of
Cash Distributions ..................... -- 1 -- -- -- --
Shares Redeemed ........................... (7) (9) -- -- -- --
--------- --------- --------- --------- --------- ---------
Total Investor Class B Transactions ..... (7) 21 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions .................. 16,496 171,133 65,346 50,977 (41,653) 45,601
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in
Net Assets ........................... 16,502 171,120 65,346 50,977 (41,637) 45,601
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period: ........................ 560,446 389,326 370,454 319,477 203,960 142,512
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period: .............................. $576,948 $ 560,446 $435,800 $ 370,454 $162,323 $ 203,960
====================================================================================================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
FOR THE SIX MONTH PERIOD ENDED MAY 31, 1996 (UNAUDITED) AND FOR THE PERIOD
ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
(IN THOUSANDS)
-----------------------------------------------------------------------------------
LIMITED TERM LIMITED TERM INTERMEDIATE INTERMEDIATE GOVERNMENT GOVERNMENT
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
------------ ------------ ------------- ------------- ---------- -----------
12/01/95 12/01/94 12/01/95 12/01/94 12/01/95 04/05/95
TO 05/31/96 TO 11/30/95 TO 05/31/96 TO 11/30/95 TO 05/31/96 TO 11/30/95
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ...................... $ 2,418 $ 4,548 $ 2,810 $ 4,613 $ 385 $ 352
Net Realized Gain (Loss) on Investments .... 67 (145) 365 (668) 7 93
Change in Net Unrealized Appreciation
(Depreciation) of Investments ............ (2,679) 4,764 (5,921) 8,352 (827) 550
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations ................... (194) 9,167 (2,746) 12,297 (435) 995
- ------------------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ................................ (2,393) (4,452) (2,795) (4,487) (374) (348)
Investors Class A .......................... (47) (36) (53) (74) -- --
Investors Class B .......................... -- -- -- -- (11) (4)
In Excess of Net Investment Income
Trust Class ................................ -- -- -- -- -- --
Investors Class A .......................... -- -- -- -- -- --
Investors Class B .......................... -- -- -- -- -- --
Capital Gains
Trust Class ................................ -- -- -- -- -- (89)
Investors Class A .......................... -- -- -- -- -- --
Investors Class B .......................... -- -- -- -- -- (3)
In Excess of Capital Gains
Trust Class ................................ -- -- -- -- -- --
Investors Class A .......................... -- -- -- -- -- --
Investors Class B .......................... -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions ...................... (2,440) (4,488) (2,848) (4,561) (385) (444)
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Assets ............................ (2,634) 4,679 (5,594) 7,736 (820) 551
====================================================================================================================================
Capital Share Transactions:
Trust Class:
Shares Issued .............................. 17,292 33,357 45,618 29,752 7,508 11,738
Shares Issued in Lieu of
Cash Distributions ..................... 1,539 3,171 1,147 2,474 6 1
Shares Redeemed ............................ (19,535) (35,747) (14,373) (35,110) (1,363) (2,072)
-------- -------- -------- -------- -------- --------
Total Trust Class Transactions ........... (704) 781 32,392 (2,884) 6,151 9,667
-------- -------- -------- -------- -------- --------
Investor Class A:
Shares Issued .............................. 562 913 408 776 -- --
Shares Issued in Lieu of
Cash Distributions ..................... 37 29 46 67 -- --
Shares Redeemed ............................ (238) (117) (130) (269) -- --
-------- -------- -------- -------- -------- --------
Total Investor Class A Transactions ...... 361 825 324 574 -- --
-------- -------- -------- -------- -------- --------
Investor Class B:
Shares Issued .............................. -- -- -- -- 241 327
Shares Issued in Lieu of
Cash Distributions ..................... -- -- -- -- 9 5
Shares Redeemed ............................ -- -- -- -- (16) (14)
-------- -------- -------- -------- -------- --------
Total Investor Class B Transactions ...... -- -- -- -- 234 318
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ................... (343) 1,606 32,716 (2,310) 6,385 9,985
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets .. (2,977) 6,285 27,122 5,426 5,565 10,536
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period: ......................... 90,247 83,962 83,599 78,173 10,536 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period: ............................... $ 87,270 $ 90,247 $110,721 $ 83,599 $ 16,101 $ 10,536
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Trust Class:
Shares Issued .............................. 1,731 3,410 4,562 3,084 717 1,155
Shares Issued in Lieu of
Cash Distributions ....................... 155 324 116 256 1 --
Shares Redeemed ............................ (1,964) (3,674) (1,444) (3,671) (131) (198)
-------- -------- -------- -------- -------- --------
Total Trust Class Share Transactions ..... (78) 60 3,234 (331) 587 957
-------- -------- -------- -------- -------- --------
Investor Class A:
Shares Issued .............................. 56 91 41 79 -- --
Shares Issued in Lieu of
Cash Distributions ....................... 4 4 5 7 -- --
Shares Redeemed ............................ (24) (12) (13) (28) -- --
-------- -------- -------- -------- -------- --------
Total Investor Class A Share
Transactions .......................... 36 83 33 58 -- --
-------- -------- -------- -------- -------- --------
Investor Class B:
Shares Issued .............................. -- -- -- -- 23 31
Shares Issued in Lieu of
Cash Distributions ....................... -- -- -- -- 1 1
Shares Redeemed ............................ -- -- -- -- (2) (1)
-------- -------- -------- -------- -------- --------
Total Investor Class B Share
Transactions .......................... -- -- -- -- 22 31
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital
Share Transactions .......................... (42) 143 3,267 (273) 609 988
====================================================================================================================================
<FN>
(1) Commenced operations on April 5, 1995.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
FOR THE SIX MONTH PERIOD ENDED MAY 31, 1996 (UNAUDITED)
AND FOR THE PERIOD ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
(IN THOUSANDS)
-------------------------------------------------------------------------
VIRGINIA VIRGINIA
INTERMEDIATE INTERMEDIATE VIRGINIA VIRGINIA MARYLAND
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND (1) BOND FUND (2)
------------ ------------ ----------- ------------- -------------
12/01/95 12/01/94 12/01/95 04/05/95 12/01/95
TO 05/31/96 TO 11/30/95 TO 05/31/96 TO 11/30/95 TO 05/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income $ 1,116 $ 2,163 $ 217 $ 147 $ 34
Net Realized Gain (Loss) on Investments (56) (398) 31 30 (7)
Change in Net Unrealized Appreciation
(Depreciation) of Investments (1,429) 5,690 (535) 215 (155)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations (369) 7,455 (287) 392 (128)
- ------------------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class (941) (1,797) (207) (138) (33)
Investors Class A (176) (364) -- -- --
Investors Class B -- -- (12) (9) --
In Excess of Net Investment Income
Trust Class -- -- -- -- --
Investors Class A -- -- -- -- --
Investors Class B -- -- -- -- --
Capital Gains
Trust Class -- -- -- (26) --
Investors Class A -- -- -- -- --
Investors Class B -- -- -- (3) --
In Excess of Capital Gains
Trust Class -- -- -- -- --
Investors Class A -- -- -- -- --
Investors Class B -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1,117) (2,161) (219) (176) (33)
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Assets (1,486) 5,294 (506) 216 (161)
====================================================================================================================================
Capital Share Transactions:
Trust Class:
Shares Issued 15,434 14,161 7,680 6,938 3,498
Shares Issued in Lieu of Cash Distributions 5 29 1 -- --
Shares Redeemed (8,261) (16,598) (2,254) (891) (58)
--------- --------- --------- --------- ---------
Total Trust Class Transactions 7,178 (2,408) 5,427 6,047 3,440
--------- --------- --------- --------- ---------
Investor Class A:
Shares Issued 761 2,323 -- -- --
Shares Issued in Lieu of Cash Distributions 142 272 -- -- --
Shares Redeemed (1,187) (2,304) -- -- --
--------- --------- --------- --------- ---------
Total Investor Class A Transactions (284) 291 -- -- --
--------- --------- --------- --------- ---------
Investor Class B:
Shares Issued -- -- 188 623 12
Shares Issued in Lieu of Cash Distributions -- -- 8 7 --
Shares Redeemed -- -- (156) (18) --
--------- --------- --------- --------- ---------
Total Investor Class B Transactions -- -- 40 612 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 6,894 (2,117) 5,467 6,659 3,452
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 5,408 3,177 4,961 6,875 3,291
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period: 52,022 48,845 6,875 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period: $ 57,430 $ 52,022 $ 11,836 $6,875 $ 3,291
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Trust Class:
Shares Issued 1,519 1,429 749 688 354
Shares Issued in Lieu of Cash Distributions 1 3 -- -- --
Shares Redeemed (813) (1,688) (221) (87) (6)
--------- --------- --------- --------- ---------
Total Trust Class Share Transactions 707 (256) 528 601 348
--------- --------- --------- --------- ---------
Investor Class A:
Shares Issued 74 237 -- -- 1
Shares Issued in Lieu of Cash Distributions 14 27 -- -- --
Shares Redeemed (117) (232) -- -- --
--------- --------- --------- --------- ---------
Total Investor Class A Share Transactions (29) 32 -- -- 1
--------- --------- --------- --------- ---------
Investor Class B:
Shares Issued -- -- 18 61 --
Shares Issued in Lieu of Cash Distributions -- -- 1 1 --
Shares Redeemed -- -- (15) (2) --
--------- --------- --------- --------- ---------
Total Investor Class B Share Transactions -- -- 4 60 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital Share
Transactions 678 (224) 532 661 349
====================================================================================================================================
<FN>
(1)Commenced operations on April 5, 1995.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ENDED MAY 31, 1996 (UNAUDITED)
AND FOR THE YEARS ENDED NOVEMBER 30.
<TABLE>
<CAPTION>
(IN THOUSANDS)
-----------------------------------------------------------------------------------
CAPITAL CAPITAL SPECIAL SPECIAL
VALUE VALUE APPRECIATION APPRECIATION EQUITY EQUITY
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ----------- -----------
02/29/96 12/01/94 12/01/95 12/01/94 12/01/95 12/01/94
TO 05/31/96 TO 11/30/95 TO 05/31/96 TO 11/30/95 TO 05/31/96 TO 11/30/95
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ...................... $ 1,996 $ 4,379 $ 43 $ 77 $ 175 $ 460
Net Realized Gain (Loss) on Investments .... 14,490 21,813 1,603 2,611 1,001 (83)
Change in Net Unrealized Appreciation
of investments ........................... 15,464 24,731 1,966 516 9,839 8,522
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
From Operations .............................. 31,950 50,923 3,612 3,204 11,015 8,899
- ------------------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Trust Class ................................ (1,824) (4,388) (35) (71) (60) (455)
Investors Class A .......................... (92) (228) (6) (10) (5) (38)
Investors Class B .......................... (9) (7) -- -- -- (1)
In Excess of Net Investment Income
Trust Class ................................ -- -- -- -- -- --
Investors Class A .......................... -- -- -- -- -- --
Investors Class B .......................... -- -- -- -- -- --
Capital Gains
Trust Class ................................ -- (29,441) -- (2,304) -- (1,501)
Investors Class A .......................... -- (1,560) -- (342) -- (115)
Investors Class B .......................... -- (167) -- -- -- --
In Excess of Capital Gains
Trust Class ................................ -- -- -- -- -- --
Investors Class A .......................... -- -- -- -- -- --
Investors Class B .......................... -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions ...................... (1,925) (35,791) (41) (2,727) (65) (2,110)
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Assets ............................ 30,025 15,132 3,571 477 10,950 6,789
====================================================================================================================================
Capital Share Transactions:
Trust Class:
Shares Issued .............................. 93,770 63,581 7,310 10,294 9,605 19,004
Shares Issued in Lieu of
Cash Distributions ...................... 1,117 24,051 1 59 48 1,570
Shares Redeemed ............................ (31,974) (48,378) (5,458) (4,065) (8,896) (16,202)
--------- --------- -------- -------- -------- ---------
Total Trust Class Transactions ........... 62,913 39,254 1,853 6,288 757 4,372
--------- --------- -------- -------- -------- ---------
Investor Class A:
Shares Issued .............................. 2,473 3,958 888 1,637 396 1,418
Shares Issued in Lieu of
Cash Distributions ...................... 92 1,769 6 349 5 152
Shares Redeemed ............................ (983) (1,979) (344) (275) (735) (872)
--------- --------- -------- -------- -------- ---------
Total Investor Class A Transactions ...... 1,582 3,748 550 1,711 (334) 698
--------- --------- -------- -------- -------- ---------
Investor Class B:
Shares Issued .............................. 1,109 2,049 -- -- 244 536
Shares Issued in Lieu of
Cash Distributions ...................... 9 174 -- -- -- 1
Shares Redeemed ............................ (96) (80) -- -- (54) (4)
--------- --------- -------- -------- -------- ---------
Total Investor Class B Transactions ...... 1,022 2,143 -- -- 190 533
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from
Capital Share Transactions ................... 65,517 45,145 2,403 7,999 613 5,603
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets ............. 95,542 60,277 5,974 8,476 11,563 12,392
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period: ......................... 235,105 174,828 22,853 14,377 59,468 47,076
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period: ............................... $330,647 $235,105 28,827 $ 22,853 $ 71,031 $ 59,468
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Trust Class:
Shares Issued .............................. 7,725 5,580 635 896 751 1,681
Shares Issued in Lieu of
Cash Distributions ...................... 92 2,175 -- 5 4 153
Shares Redeemed ............................ (2,621) (4,287) (468) (364) (701) (1,493)
--------- --------- -------- -------- -------- ---------
Total Trust Class Share Transactions ..... 5,196 3,468 167 537 54 341
--------- --------- -------- -------- -------- ---------
Investor Class A:
Shares Issued .............................. 202 346 77 146 31 126
Shares Issued in Lieu of
Cash Distributions ...................... 7 158 1 33 -- 15
Shares Redeemed ............................ (80) (173) (30) (26) (57) (79)
--------- --------- -------- -------- -------- ---------
Total Investor Class A
Share Transactions .................... 129 331 48 153 (26) 62
--------- --------- -------- -------- -------- ---------
Investor Class B:
Shares Issued .............................. 91 170 -- -- 19 46
Shares Issued in Lieu of
Cash Distributions ...................... 1 15 -- -- -- --
Shares Redeemed ............................ (8) (6) -- -- (4) --
--------- --------- -------- -------- -------- ---------
Total Investor Class B
Share Transactions .................... 84 179 -- -- 15 46
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase from Capital Share
Transactions ................................ 5,409 3,978 215 690 43 449
====================================================================================================================================
<FN>
(2) Commenced operations on February 29, 1996.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ENDED MAY 31, 1996 (UNAUDITED)
AND FOR THE YEARS ENDED NOVEMBER 30.
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS
NET --------------------------- -------------------- NET
ASSET NET REALIZED ASSET
VALUE, NET AND UNREALIZED NET VALUE,
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN
- -----------------------------------------------------------------------------------------------
- -----------------
CASH RESERVE FUND
- -----------------
TRUST CLASS
<S> <C> <C> <C> <C> <C> <C> <C>
1996 $1.00 0.024 -- (0.024) -- $1.00 4.94%*
1995 1.00 0.053 -- (0.053) -- 1.00 5.45%
1994 1.00 0.034 -- (0.034) -- 1.00 3.46%
1993 1.00 0.027 -- (0.027) -- 1.00 2.76%
1992 1.00 0.036 -- (0.036) -- 1.00 3.66%
1991 1.00 0.060 -- (0.060) -- 1.00 6.17%*
INVESTORS CLASS A
1996 1.00 0.024 -- (0.024) -- 1.00 4.92*
1995 1.00 0.053 -- (0.053) -- 1.00 5.44%
1994 1.00 0.033 -- (0.033) -- 1.00 3.36%
1993 (1) 1.00 0.014 -- (0.014) -- 1.00 1.49%*
INVESTORS CLASS B (**)
1996 1.00 0.020 -- (0.020) -- 1.00 4.06%*
1995 (2) 1.00 0.028 -- (0.028) -- 1.00 2.82%*
- ------------------------
U.S. TREASURY MONEY FUND
- ------------------------
TRUST CLASS
1996 $1.00 0.024 -- (0.024) -- $1.00 4.80%*
1995 1.00 0.052 -- (0.052) -- 1.00 5.29%
1994 1.00 0.033 -- (0.033) -- 1.00 3.30%
1993 1.00 0.025 -- (0.025) -- 1.00 2.51%
1992 1.00 0.034 -- (0.034) -- 1.00 3.55%
1991 1.00 0.058 -- (0.058) -- 1.00 6.00%
INVESTORS CLASS A ((DAGGER))
1994 1.00 0.008 -- (0.008) -- 1.00 0.79%
1993 1.00 0.003 -- (0.003) -- 1.00 0.34%
- -------------------
TAX-FREE MONEY FUND
- -------------------
TRUST CLASS
1996 $1.00 0.015 .002 (0.015) (0.002) $1.00 3.38%*
1995 1.00 0.032 -- (0.032) -- 1.00 3.26%
1994 1.00 0.021 -- (0.021) -- 1.00 2.07%
1993 1.00 0.019 -- (0.019) -- 1.00 1.88%
1992 1.00 0.031 -- (0.031) -- 1.00 3.03%
1991 1.00 0.046 -- (0.046) -- 1.00 4.72%
INVESTORS CLASS A
1996 1.00 0.015 .002 (0.015) (0.002) 1.00 3.36%*
1995 1.00 0.031 -- (0.031) -- 1.00 3.25%
1994 1.00 0.020 -- (0.020) -- 1.00 1.98%
1993 (3) 1.00 0.009 -- (0.009) -- 1.00 0.88%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
RATIO NET INVESTMENT
NET OF EXPENSES RATIO OF INCOME TO
ASSETS, RATIO TO AVERAGE NET INVESTMENT AVERAGE
END OF EXPENSES NET ASSETS INCOME NET ASSETS PORTFOLIO
OF PERIOD TO AVERAGE EXCLUDING TO AVERAGE EXCLUDING TURNOVER
(000) NET ASSETS FEE WAIVERS NET ASSETS FEE WAIVERS RATE
- ------------------------------------------------------------------------------------------
- ------------
CASH RESERVE
- ------------
TRUST CLASS
<S> <C> <C> <C> <C> <C> <C>
1996 $520,663 0.66%* 0.81%* 4.87%* 4.72%* --
1995 520,185 0.66% 0.81% 5.31% 5.16% --
1994 377,493 0.66% 0.66% 3.37% 3.37% --
1993 408,036 0.66% 0.66% 2.75% 2.75% --
1992 496,847 0.61% 0.61% 3.50% 3.50% --
1991 396,534 0.51% 0.58% 6.00% 5.93% --
INVESTORS CLASS A
1996 55,965 0.67%* 1.07%* 4.84%* 4.44%* --
1995 40,240 0.67% 1.07% 5.31% 4.91% --
1994 11,832 0.68% 0.97% 3.35% 3.06% --
1993 (1) 73 1.16%* 13.00%* 2.25%* (14.09%)* --
INVESTORS CLASS B (**)
1996 15 1.52%* 1.67%* 4.02%* 3.87%* --
1995 (2) 21 1.52%* 1.67%* 4.45%* 4.30%* --
- ------------------------
U.S. TREASURY MONEY FUND
- ------------------------
TRUST CLASS
1996 $435,788 0.66%* 0.81%* 4.74%* 4.59%* --
1995 370,454 0.66% 0.81% 5.16% 5.01% --
1994 319,477 0.66% 0.66% 3.23% 3.23% --
1993 342,537 0.66% 0.66% 2.52% 2.52% --
1992 482,881 0.64% 0.65% 3.37% 3.36% --
1991 279,790 0.56% 0.62% 5.61% 5.55% --
INVESTORS CLASS A (DAGGER)
1994 -- 0.92%* 29.16%* 2.31%* (25.93%)* --
1993 17 1.16%* 36.60%* 2.02%* (33.42%)* --
- -------------------
TAX-FREE MONEY FUND
- -------------------
TRUST CLASS
1996 $160,144 0.66%* 0.81%* 2.93%* 2.78%* --
1995 202,333 0.66% 0.81% 3.19% 3.04% --
1994 157,602 0.67% 0.67% 2.06% 2.06% --
1993 142,284 0.66% 0.66% 1.85% 1.85% --
1992 155,458 0.47% 0.62% 3.00% 2.85% --
1991 166,670 0.27% 0.70% 4.39% 3.96% --
INVESTORS CLASS A
1996 2,174 0.67%* 1.07%* 2.93%* 2.53%* --
1995 1,627 0.67% 1.07% 3.16% 2.76% --
1994 757 0.76% 1.44% 1.97% 1.29% --
1993 (3) 228 1.16%* 3.00%* 1.35%* (0.49%)* --
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) Commencement of operations for this class May 4, 1993.
(2) Commencement of operations for this class April 19, 1995.
(3) Commencement of operations for this class May 5, 1993.
((DAGGER)) Ceased operations March 31, 1994.
* Annualized.
** Total Return does not reflect the sales charge or redemption charge, where applicable.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ENDED MAY 31, 1996 (UNAUDITED)
AND FOR THE YEARS ENDED NOVEMBER 30.
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS
NET --------------------------- -------------------- NET
ASSET NET REALIZED ASSET
VALUE, NET AND UNREALIZED NET VALUE,
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
LIMITED TERM BOND FUND
- ----------------------
TRUST CLASS
1996 $10.03 0.268 (0.280) (0.268) -- $ 9.75 (0.28%)*
1995 9.49 0.532 0.534 (0.526) -- 10.03 11.50%
1994 10.16 0.480 (0.640) (0.480) (0.030) 9.49 (1.56%)
1993 9.81 0.500 0.350 (0.500) -- 10.16 8.84%
1992 (4) 10.00 0.070 (0.190) (0.070) -- 9.81 (1.22%)
INVESTORS CLASS A (**)
1996 10.06 0.269 (0.281) (0.268) -- 9.78 (0.28%)*
1995 9.50 0.530 0.556 (0.526) -- 10.06 11.70%
1994 10.17 0.480 (0.650) (0.470) (0.030) 9.50 (1.72%)
1993 (5) 10.11 0.260 0.060 (0.260) -- 10.17 3.16%*
- ----------------------
INTERMEDIATE BOND FUND
- ----------------------
TRUST CLASS
1996 $10.12 0.281 (0.520) (0.281) -- $ 9.60 (4.84%)*
1995 9.16 0.569 0.954 (0.563) -- 10.12 17.07%
1994 10.20 0.530 (1.000) (0.530) (0.040) 9.16 (4.72%)
1993 9.70 0.520 0.500 (0.520) -- 10.20 10.69%
1992 (4) 10.00 0.080 (0.300) (0.080) -- 9.70 (2.20%)*
INVESTORS CLASS A (**)
1996 10.12 0.281 (0.511) (0.280) -- 9.61 (4.64%)*
1995 9.16 0.572 0.951 (0.563) -- 10.12 17.08%
1994 10.19 0.520 (0.990) (0.520) (0.040) 9.16 (4.72%)
1993 (6) 10.20 0.290 (0.010) -- (0.290) 10.19 2.72%*
- --------------------
GOVERNMENT BOND FUND
- --------------------
TRUST CLASS
1996 $10.66 0.299 (0.580) (0.299) -- $10.08 (5.38%)*
1995(7) 10.00 0.412 0.753 (0.412) (0.093) 10.66 11.85%*
INVESTORS CLASS B (**)
1996 10.68 0.254 (0.580) (0.254) -- 10.10 (6.22%)*
1995(8) 10.03 0.338 0.738 (0.333) (0.093) 10.68 10.86%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
RATIO NET INVESTMENT
NET OF EXPENSES RATIO OF INCOME TO
ASSETS, RATIO TO AVERAGE NET INVESTMENT AVERAGE
END OF EXPENSES NET ASSETS INCOME NET ASSETS PORTFOLIO
OF PERIOD TO AVERAGE EXCLUDING TO AVERAGE EXCLUDING TURNOVER
(000) NET ASSETS FEE WAIVERS NET ASSETS FEE WAIVERS RATE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ----------------------
LIMITED TERM BOND FUND
- ----------------------
TRUST CLASS
1996 $ 85,288 0.78%* 0.93%* 5.37%* 5.22%* 22%
1995 88,789 0.78% 0.93% 5.44% 5.29% 36%
1994 83,369 0.76% 0.76% 4.92% 4.92% 47%
1993 85,968 0.77% 0.77% 4.95% 4.95% 61%
1992 (4) 72,590 1.04%* 1.04%* 4.46%* 4.46%* 2%
INVESTORS CLASS A (**)
1996 1,759 0.79%* 0.94%* 5.36%* 5.21%* 22%
1995 1,458 0.79% 0.94% 5.46% 5.31% 36%
1994 593 0.77% 1.03% 4.92% 4.66% 47%
1993 (5) 427 1.02%* 1.48%* 4.70%* 4.24%* 61%
- ----------------------
INTERMEDIATE BOND FUND
- ----------------------
TRUST CLASS
1996 $108,755 0.88%* 1.03%* 5.66%* 5.51%* 17%
1995 81,870 0.88% 1.03% 5.89% 5.74% 37%
1994 77,143 0.88% 0.88% 5.53% 5.53% 39%
1993 58,487 0.90% 0.90% 5.15% 5.15% 28%
1992 (4) 13,759 1.15%* 1.15%* 4.63%* 4.63%* 0%
INVESTORS CLASS A (**)
1996 1,944 0.89%* 1.04%* 5.65%* 5.50%* 17%
1995 1,729 0.89% 1.04% 5.87% 5.72% 37%
1994 1,030 0.89% 1.05% 5.51% 5.35% 39%
1993 (6) 618 1.15%* 1.58%* 4.90%* 4.47%* 28%
- --------------------
GOVERNMENT BOND FUND
- --------------------
TRUST CLASS
1996 $ 15,557 0.71%* 1.11%* 5.72%* 5.32%* 10%
1995(7) 10,211 0.71%* 1.11%* 6.00%* 5.60%* 28%
INVESTORS CLASS B (**)
1996 529 1.57%* 1.97%* 4.88%* 4.48%* 10%
1995(8) 325 1.55%* 1.95%* 5.05%* 4.65%* 28%
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(4) Commencement of operations for this class September 28, 1992.
(5) Commencement of operations for this class May 19, 1993.
(6) Commencement of operations for this class May 11, 1993.
(7) Commencement of operations for this class April 5, 1995.
(8) Commencement of operations for this class April 19, 1995.
* Annualized.
** Total Return does not reflect the sales charge or redemption charge, where applicable.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ENDED MAY 31, 1996 (UNAUDITED)
AND FOR THE YEARS ENDED NOVEMBER 30.
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS
NET --------------------------- -------------------- NET
ASSET NET REALIZED ASSET
VALUE, NET AND UNREALIZED NET VALUE,
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN
- -----------------------------------------------------------------------------------------------
- -----------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------
TRUST CLASS
<S> <C> <C> <C> <C> <C> <C> <C>
1996 $10.24 0.206 (0.270) (0.206) -- $ 9.97 (1.28%)*
1995 9.21 0.428 1.030 (0.428) -- 10.24 16.09%
1994 10.33 0.440 (1.100) (0.440) (0.020) 9.21 (6.53%)
1993(9) 10.00 0.390 0.330 (0.390) -- 10.33 7.25%*
INVESTORS CLASS A (**)
1996 10.23 0.205 (0.270) (0.205) -- 9.96 (1.28%)*
1995 9.20 0.428 1.029 (0.427) -- 10.23 16.10%
1994 10.32 0.440 (1.100) (0.440) (0.020) 9.20 (6.56%)
1993(3) 10.22 0.260 0.100 (0.260) -- 10.32 (3.53%)*
- ----------------------------
VIRGINIA MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
1996 $10.40 0.234 (0.480) (0.234) -- $ 9.92 (4.80%)*
1995(7) 10.00 0.309 0.445 (0.310) (0.044) 10.40 7.67%*
INVESTORS CLASS B (**)
1996 10.43 0.191 (0.491) (0.190) -- 9.94 (5.82%)*
1995(10) 10.06 0.237 0.409 (0.232) (0.044) 10.43 6.51%*
- ----------------------------
MARYLAND MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
1996(12) $10.00 0.104 (0.570) (0.104) -- $ 9.43 (17.45%)*
INVESTORS CLASS B (**)
1996(13) 9.53 0.036 (0.102) (0.034) -- 9.43 (6.82%)*
- ----------
VALUE FUND
- ----------
TRUST CLASS
1996 $11.60 0.082 1.269 (0.081) -- $12.87 23.36%*
1995 10.73 0.245 2.619 (0.262) (1.732) 11.60 28.76%
1994 11.38 0.200 (0.240) (0.190) (0.420) 10.73 (0.49%)
1993 10.50 0.180 0.870 (0.170) -- 11.38 10.05%
1992 (4) 10.00 0.030 0.500 (0.030) -- 10.50 5.30%*
INVESTORS CLASS A (**)
1996 11.66 0.085 1.275 (0.080) -- 12.94 23.40%*
1995 10.78 0.250 2.623 (0.261) (1.732) 11.66 28.71%
1994 11.42 0.180 (0.220) (0.180) (0.420) 10.78 (0.45%)
1993 (11) 11.06 0.060 0.350 (0.050) -- 11.42 3.71%*
INVESTORS CLASS B (**)
1996 11.64 0.047 1.273 (0.040) -- 12.92 22.72%*
1995 (7) 11.11 0.120 1.618 (0.136) (1.072) 11.64 15.78%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
RATIO NET INVESTMENT
NET OF EXPENSES RATIO OF INCOME TO
ASSETS, RATIO TO AVERAGE NET INVESTMENT AVERAGE
END OF EXPENSES NET ASSETS INCOME NET ASSETS PORTFOLIO AVERAGE
OF PERIOD TO AVERAGE EXCLUDING TO AVERAGE EXCLUDING TURNOVER COMMISSION
(000) NET ASSETS FEE WAIVERS NET ASSETS FEE WAIVERS RATE RATE (A)
- -------------------------------------------------------------------------------------------------------
- -----------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------
TRUST CLASS
<S> <C> <C> <C> <C> <C> <C> <C>
1996 $ 49,260 0.78%* 0.93%* 4.05%* 3.90%* 11% n/a
1995 43,373 0.72% 0.94% 4.34% 4.12% 28% n/a
1994 41,365 0.65% 0.77% 4.48% 4.36% 24% n/a
1993(9) 39,392 0.71%* 0.85%* 4.25%* 4.11%* 39% n/a
INVESTORS CLASS A (**)
1996 8,112 0.79%* 0.94%* 4.03%* 3.88%* 11% n/a
1995 8,649 0.73% 0.95% 4.33% 4.11% 28% n/a
1994 7,481 0.66% 0.80% 4.47% 4.33% 24% n/a
1993(3) 4,805 0.66%* 0.90%* 4.27%* 4.03%* 39% n/a
- ----------
VIRGINIA MUNICIPAL BOND FUND
- ----------
TRUST CLASS
1996 $ 11,186 0.71%* 1.11%* 4.61%* 4.21%* 14% n/a
1995(7) 6,247 0.71%* 1.11%* 4.61%* 4.21%* 35% n/a
INVESTORS CLASS B (**)
1996 639 1.57%* 1.97%* 3.72%* 3.32%* 14% n/a
1995(10) 628 1.57%* 1.97%* 3.76%* 3.36%* 35% n/a
- ----------------------------
MARYLAND MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
1996(11) $ 3,279 0.71%* 1.36%* 4.33%* 3.68%* 3% n/a
INVESTORS CLASS B (**)
1996(12) 12 1.57%* 2.22%* 3.67%* 3.02%* 3% n/a
- ----------
VALUE FUND
- ----------
TRUST CLASS
1996 $311,647 1.02%* 1.17%* 1.39%* 1.24%* 58% $0.0618
1995 220,386 1.02% 1.17% 2.16% 2.01% 175% n/a
1994 166,713 1.01% 1.01% 1.82% 1.82% 116% n/a
1993 167,337 1.03% 1.03% 1.64% 1.64% 77% n/a
1992 (4) 82,944 1.28%* 1.28%* 1.74%* 1.74%* 5% n/a
INVESTORS CLASS A (**)
1996 15,696 1.03%* 1.18%* 1.38%* 1.23%* 58% $0.0618
1995 12,633 1.03% 1.18% 2.14% 1.99% 175% n/a
1994 8,115 1.02% 1.04% 1.81% 1.79% 116% n/a
1993 (11 4,058 1.16%* 1.16%* 1.51%* 1.51%* 77% n/a
INVESTORS CLASS B (**)
1996 3,396 1.68%* 2.03%* 0.74%* 0.39%* 58% $0.0618
1995 (7) 2,086 1.68%* 2.03%* 1.13%* 0.78%* 175% n/a
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(A) Average commission rate paid per share for the security purchases and sales
made during the period. Presentation of the rate is only required for fiscal
years beginning after September 1, 1995.
(3) Commencement of operations for this class May 5, 1993.
(4) Commencement of operations for this class September 28, 1992.
(7) Commencement of operations for this class April 5, 1995.
(9) Commencement of operations for this class January 11, 1993.
(10) Commencement of operations for this class April 17, 1995.
(11) Commencement of operations for this class May 7, 1993.
(12) Commencement of operations for this class March 1, 1996.
(13) Commencement of operations for this class April 25, 1996.
* Annualized.
** Total Return does not reflect the sales charge or redemption charge, where applicable.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ENDED MAY 31, 1996 (UNAUDITED)
AND FOR THE YEARS ENDED NOVEMBER 30.
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS
NET --------------------------- -------------------- NET
ASSET NET REALIZED ASSET
VALUE, NET AND UNREALIZED NET VALUE,
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------
CAPITAL APPRECIATION FUND
- -------------------------
TRUST CLASS
1996 $10.87 0.019 1.579 (0.018) -- $12.45 29.46%*
1995 10.17 0.043 2.035 (0.046) (1.332) 10.87 20.74%
1994 9.79 0.010 0.380 (0.010) -- 10.17 4.13%
1993(9) 10.00 0.010 (0.210 (0.010) -- 9.79 (2.00%)*
INVESTORS CLASS A (**)
1996 10.76 0.019 1.559 (0.018) -- 12.32 29.38%*
1995 10.08 0.044 2.013 (0.045) (1,332) 10.76 20.72%
1994 9.74 0.010 0.340 (0.010) -- 10.08 3.70%
1993(10) 9.42 -- 0.320 -- -- 9.74 3.40%*
- -------------------
SPECIAL EQUITY FUND
- -------------------
TRUST CLASS
1996 $12.12 0.036 2.207 (0.013) -- $14.35 37.06%*
1995 10.56 0.100 1.928 (0.108) (0.360) 12.12 20.07%
1994 12.76 0.030 (0.460) (0.020) (1.750) 10.56 (4.74%)
1993 11.19 0.010 1.560 -- -- 12.76 14.07%
1992(4) 10.00 0.010 1.180 -- -- 11.19 11.90%*
INVESTORS CLASS A (**)
1996 12.12 0.036 2.207 (0.013) -- 14.35 37.06%*
1995 10.56 0.100 1.927 (0.107) (0.360) 12.12 20.06%
1994 12.76 0.030 (0.460) (0.020) (1.750) 10.56 (4.76%)
1993(3) 11.69 -- 1.070 -- -- 12.76 9.19%*
INVESTORS CLASS B (**)
1996 12.08 (0.010) 2.183 (0.003) -- 14.25 35.98%*
1995(7) 10.61 0.007 1.501 (0.038) -- 12.08 14.22%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
RATIO NET INVESTMENT
NET OF EXPENSES RATIO OF INCOME TO
ASSETS, RATIO TO AVERAGE NET INVESTMENT AVERAGE
END OF EXPENSES NET ASSETS INCOME NET ASSETS PORTFOLIO AVERAGE
OF PERIOD TO AVERAGE EXCLUDING TO AVERAGE EXCLUDING TURNOVER COMMISSION
(000) NET ASSETS FEE WAIVERS NET ASSETS FEE WAIVERS RATE RATE (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------
CAPITAL APPRECIATION FUND
- -------------------------
TRUST CLASS
1996 $25,507 1.10%* 1.25%* 0.33%* 0.18%* 52% $0.0775
1995 19,592 1.10% 1.25% 0.40% 0.25% 470% n/a
1994 12,869 1.05% 1.05% 0.17% 0.17% 271% n/a
1993(9) 7,741 1.11%* 1.11%* 0.20%* 0.20%* 133% n/a
INVESTORS CLASS A (**)
1996 4,317 1.11%* 1.26%* 0.32%* 0.17%* 52% $0.0775
1995 3,261 1.11% 1.26% 0.39% 0.24% 470% n/a
1994 1,509 1.06% 1.18% 0.16% 0.04% 271% n/a
1993(10) 649 1.36%* 1.80%* (0.05%)* (0.49%)* 133% n/a
- -------------------
SPECIAL EQUITY FUND
- -------------------
TRUST CLASS
1996 $65,055 1.04%* 1.19%* 0.57%* 0.42%* 23% $0.0618
1995 54,221 1.04% 1.19% 0.90% 0.75% 81% n/a
1994 43,640 1.03% 1.03% 0.32% 0.32% 117% n/a
1993 32,706 1.03% 1.03% 0.06% 0.06% 95% n/a
1992(4) 21,925 1.28%* 1.28%* 0.23%* 0.23%* 3% n/a
INVESTORS CLASS A (**)
1996 5,184 1.05%* 1.20%* 0.56%* 0.41%* 23% $0.0618
1995 4,693 1.05% 1.20% 0.89% 0.74% 81% n/a
1994 3,436 1.04% 1.10% 0.31% 0.25% 117% n/a
1993(3) 938 1.28%* 1.61%* (0.19%)* (0.52%)* 95% n/a
INVESTORS CLASS B (**)
1996 869 1.90%* 2.05%* (0.30%)* (0.45%)* 23% $0.0618
1995(7) 554 1.90%* 2.05%* (0.04%)* (0.19%)* 81% n/a
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(A) Average commission rate paid per share for the security purchases and sales
made during the period. Presentation of the rate is only required for
fiscal years beginning after September 1, 1995.
(3) Commencement of operations for this class May 5, 1993.
(4) Commencement of operations for this class September 28, 1992.
(7) Commencement of operations for this class April 5, 1995.
(9) Commencement of operations for this class January 11, 1993.
(10) Commencement of operations for this class May 7, 1993.
(11) Commencement of operations for this class May 7, 1993.
(12) Commencement of operations for this class March 1, 1996.
* Annualized.
** Total Return does not reflect the sales charge or redemption charge, where
applicable.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS CRESTFUNDS, INC.
May 31, 1996 Unaudited
1. ORGANIZATION
CrestFunds, Inc. (the Company) is registered under the Investment
Company Act of 1940 ( the "1940 Act"), as amended, as an open-end, management
investment company organized as a Maryland corporation. The Company currently
has twelve investment portfolios (individually a Fund and collectively the
"Funds"). The Funds offer one or more of three classes of shares, the Trust
Class Shares, the Investors Class A Shares and the Investors Class B Shares. The
Funds include:
EQUITY FUNDS
Value Fund
Special Equity Fund
Capital Appreciation Fund
BOND FUNDS
Limited Term Bond Fund
(PREVIOUSLY KNOWN AS SHORT/INTERMEDIATE BOND FUND)
Intermediate Bond Fund
(PREVIOUSLY KNOWN AS BOND FUND)
Virginia Intermediate Municipal Bond Fund
(PREVIOUSLY KNOWN AS VIRGINIA MUNICIPAL BOND FUND)
Virginia Municipal Bond Fund
Government Bond Fund
Maryland Municipal Bond Fund
MONEY MARKET FUNDS
Cash Reserve Fund
U.S. Treasury Money Fund
Tax Free Money Fund
The Funds' prospectus provides a description of each funds investment
objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds:
SECURITY VALUATION--Investment securities held by the Money Market Funds
are stated at amortized cost, which approximates market value. Under this
valuation method, purchase discount and premiums are accreted and amortized
ratably to maturity and are included in interest income.
Investments in equity securities held by the Non-Money Market Funds which
are traded on a national securities exchange (or reported on the NASDAQ
national market system) are stated at the last quoted sale price if readily
available for each equity securities on each business day; other equity
securities traded in the over-the-counter markets and listed equity
securities for which no sale was reported on that date are stated at the
last quoted bid price. Debt obligations exceeding sixty days to maturity
for which market quotations are readily available are valued at the most
recent quoted bid price. Debt obligations with sixty days or less remaining
until maturity may be valued at their amortized cost. Restricted securities
for which quotations are not readily available are valued at fair value
using methods determined in good faith under general supervision of the
Funds' Directors.
FEDERAL INCOME TAXES--It is each Fund's intention to continue to qualify as
a regulated investment company for Federal income tax purposes and
distribute all of its taxable income and net capital gains. Accordingly, no
provision for Federal income taxes is required.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--Distribution from net
investment income for the Money Market Funds and Bond Funds are declared
daily and paid monthly. Each of the Equity Funds declare and pay dividends
from net investment income monthly. Any net realized capital gains will be
distributed at least annually for all Funds. Dividends and distributions
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for deferral of wash sales losses and
post October losses.
CLASSES--Class specific expenses are borne by that class. Income, non-class
specific expenses and realized/unrealized gains and losses are allocated to
the respective classes on the basis of the relative daily net assets.
SECURITY TRANSACTIONS AND INVESTMENT INCOME--Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Costs used in determining realized gains and losses on the sale of
investment securities are those of the specific securities sold adjusted
for the accretion and amortization of purchase discounts and premiums
during the respective holding periods. Interest income is recorded on the
accrual basis; dividend income is recorded on the ex-dividend date.
REPURCHASE AGREEMENTS--Each Fund, with the exception of Tax Free Money
Fund, Virginia Intermediate Municipal Bond Fund, Virginia Municipal Bond
Fund, and Maryland Municipal Bond Fund may invest in repurchase agreements.
The Funds, through their sub-custodian, receive delivery of the underlying
securities, whose market value including interest is required to be at
least 102% of the resale price. The Funds' investment advisor, Capitoline
Investment Services
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CRESTFUNDS, INC.
May 31, 1996 Unaudited
Incorporated, is responsible for determining that the value of these
underlying securities remains at least 102% of the resale price. If the
seller defaults, the Fund would suffer a loss to the extent that the
proceeds from the sale of the underlying securities were less than the
resale price.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES--The Company's investment advisor is Capitoline Investment
Services Incorporated (the Advisor), a wholly owned subsidiary of Crestar
Bank. Pursuant to an Investment Advisory Agreement, the Advisor is paid for
advisory services to each Fund at the annual rate based on the following
fee schedule; Cash Reserve Fund, U.S. Treasury Money Fund and Tax Free
Money Fund; .40% of each Fund's average daily net assets for the first $500
million of net assets; .35% of each Fund's average daily net assets on the
next $500 million of net assets; .30% of each Fund's average daily net
assets on all remaining net assets; Capital Appreciation Fund, Value Fund
and Special Equity Fund; .75% of each Fund's average daily net assets;
Limited Term Bond Fund and Virginia Intermediate Municipal Bond Fund; .50%
of each Fund's average daily net assets; Intermediate Bond Fund, Government
Bond Fund, Maryland Municipal Bond Fund and Virginia Municipal Bond Fund;
.60% of each Fund's average daily net assets. The Advisor has voluntarily
agreed to waive a portion of its fee for Virginia Municipal Bond Fund and
Government Bond Fund in order to limit Advisory Fee to .50% for each Fund.
In addition, the Advisor has voluntarily agreed to waive a portion of its
fee to limit advisory fee to .10% for the Maryland Municipal Bond Fund.
ADMINISTRATION AND DISTRIBUTION FEES--SEI Fund Resources (the
Administrator), a Delaware business trust, serves as administrator to the
Company. SEI Financial Management Corporation, a wholly-owned subsidiary of
SEI Corporation, is the owner of all beneficial interest in the
Administrator. The Administrator provides the Company with administrative
services, including fund accounting, and regulatory reporting and is
entitled to receive a fee at an annual rate of .15% of the average daily
net assets of the Funds. The Administrator has voluntarily agreed to waive
a portion of its fee for Government Bond Fund, Virginia Municipal Bond Fund
and Maryland Municipal Bond Fund in order to limit operating expenses.
SEI Financial Services Company (the Distributor), a wholly-owned subsidiary
of SEI Corporation, serves as distributor of each Fund's shares pursuant to
a distribution agreement with the Company. The Trust Class and Investors
Class A shares of the Funds have a separate distribution plan (the 12b-1
Plan) pursuant to Rule 12b-1 under the 1940 Act. As provided in the 12b-1
Plan, the Trust Class and Investors Class A shares of the Funds pay the
Distributor as compensation for its services .15% of the aggregate average
daily net assets of such classes of the Funds. The Distributor has agreed
to waive any fees payable pursuant to the 12b-1 Plan.
In addition, the Investors Class A shares of the Money Market Funds have a
distribution plan (the Investors Class A Plan) pursuant to Rule 12b-1 under
the 1940 Act. As provided in the Investors Class A Plan, the Investors
Class A shares of the Money Market Funds pay the Distributor as
compensation for its services .25% of such Class average daily net assets.
The distributor has agreed to waive any fees payable pursuant to the
Investors Class A Plan.
The Investors Class B shares of the Funds have a distribution plan (the B
Shares Plan) pursuant to Rule 12b-1 under the 1940 Act. As provided in the
B Shares Plan, the Investors Class B shares of the Funds pay the
Distributor as compensation for its services .75% of the aggregate average
daily net assets of such class of the Funds. In addition, pursuant to the B
Share Plan, the Distributor is compensated at an annual rate of .25% of the
B shares' average net assets for providing ongoing Shareholder support
services to investors in B shares. The Distributor has agreed to waive a
portion of its fees pursuant to the B Shares Plan in order to limit
Distribution Fees to .85% for each Fund, except for The Value Fund for
which the limit is .65%.
TRANSFER AGENT AND CUSTODIAN FEES--Crestar Bank serves as the Company's
transfer agent and dividend disbursing agent and is compensated for those
services monthly by each Fund at an annual rate of .05% of the Fund's
average daily net assets for the Trust Class and .06% of the Fund's average
daily net assets for the Investors Class A and Investors Class B. In
addition, Crestar Bank serves
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CRESTFUNDS, INC.
May 31, 1996 Unaudited
as the Company's custodian and is compensated at an annual rate of up to
.04% of each Fund's average daily net assets.
CONTINGENT DEFERRED SALES CHARGE (CDSC)--
A CDSC is imposed on certain redemptions of Investors Class B shares. The
CDSC varies depending on the number of years from the time of payment for
the purchase of Investors Class B shares until the redemption of such
shares.
CONTINGENT
FROM DATE OF DEFERRED SALES
PURCHASE CHARGE
-------------- -----------------
Year 1 ........................ 5.00%
Year 2 ........................ 4.00%
Year 3 ........................ 3.00%
Year 4 ........................ 3.00%
Year 5 ........................ 2.00%
Year 6 ........................ 1.00%
Year 7 ........................ 0.00%
Year 8 ........................Conversion to A Shares
4. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
including U.S. Government securities, other than temporary cash investments,
during the period ended May 31, 1996.
PURCHASE SALES
(000) (000)
---------- ----------
Limited Term Bond ............... $ 20,129 $ 18,274
Intermediate Bond ............... 41,914 15,389
Government Bond ................. 6,954 1,293
Virginia Intermediate
Municipal Bond ............... 11,324 5,392
Virginia Municipal Bond ......... 6,245 1,245
Maryland Municipal Bond ......... 3,255 92
Value ........................... 224,305 162,389
Capital Appreciation ............ 15,016 13,011
Special Equity .................. 17,795 14,001
At May 31, 1996, 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 reporting purposes. The aggregate
gross unrealized appreciation and depreciation on securities at May 31, 1996,
for each Fund is as follows:
<PAGE>
NET
APPRECIATION DEPRECIATION APPRECIATION/DEPRECIATION
(000) (000) (000)
------------ ------------ -------------------------
Limited Term Bond ...... $ 195 $1,904 $(1,709)
Intermediate Bond ...... 444 2,673 (2,229)
Government Bond 67 344 (277)
Virginia Intermediate
Municipal Bond ...... 159 1,023 (864)
Virginia Municipal
Bond ................ 35 355 (320)
Maryland Municipal
Bond ................ -- 155 (155)
Value .................. 36,440 3,024 33,416
Capital Appreciation ... 3,504 616 2,888
Special Equity ......... 16,211 1,300 14,911
Subsequent to October 31, 1995, the Funds recognized net capital losses for tax
purposes that have been deferred to 1996 and can be used to offset future
capital gains at November 30, 1996. The Funds also had capital losses
carryforward at November 30, 1995, to the extent provided in the regulations for
Federal income tax as follows:
CAPITAL LOSS
CARRYOVER
11/30/95 EXPIRES 2000 EXPIRES 2001
------------- ------------ ------------
Cash Reserve ................ $ 86,053 $ -- $ --
Tax Free Money .............. 10,083 8,372 --
Limited Term Bond ........... 1,038,806 -- --
Intermediate Bond ........... 2,471,343 -- --
Virginia Intermediate
Municipal Bond ........... 942,826 -- --
Capital Appreciation ........ -- -- --
Special Equity .............. 83,520 -- --
POST
10/31/95
EXPIRES 2002 EXPIRES 2003 DEFERRED LOSSES
------------ ------------ ---------------
Cash Reserve $ 71,692 $ 14,361 $ --
Tax Free Money -- -- --
Limited Term Bond 784,783 254,023 --
Intermediate Bond 1,803,687 667,656 --
Virginia Intermediate
Municipal Bond 544,784 398,042 --
Capital Appreciation -- -- 43,163
Special Equity -- 83,520 --
5. CONCENTRATION OF CREDIT RISK
The Virginia Intermediate Municipal Bond Fund, the Virginia Municipal Bond Fund,
and the Maryland Municipal Bond Fund invest in debt securities in their
respective states. The ability of the issuers of the securities held by the
Funds to meet their obligations may be affected by economic or political
conditions in that state.
- --------------------------------------------------------------------------------
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE COMPANY. THE REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE COMPANY, UNLESS
PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. NEITHER THE COMPANY NOR SEI
FINANCIAL SERVICES COMPANY IS A BANK AND COMPANY SHARES ARE NOT OBLIGATIONS OF
OR GUARANTEED BY ANY BANK OR INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD OR
ANY OTHER AGENCY. INVESTING IN MUTUAL FUNDS INVOLVES RISKS, INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED. AN INVESTMENT IN A MONEY MARKET FUND
IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, AND THERE CAN BE NO
ASSURANCE THAT A MONEY MARKET FUND WILL MAINTAIN A STABLE $1.00 SHARE PRICE. SEI
FINANCIAL SERVICES COMPANY AND CRESTAR BANK ARE NOT AFFILIATED.
- --------------------------------------------------------------------------------
