[CRESTAR LOGO]
MAY 31, 1997
CREST
-------
FUNDS
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
Semi-Annual Report
<PAGE>
CRESTFUNDS, INC.
DEAR CRESTFUNDS SHAREHOLDER:
The financial markets continued to benefit from healthy economic growth and low
inflation during the first half of the fiscal year. The stock market turned in
yet another outstanding performance for the period ended May 31, 1997, leading
all other asset classes by a wide margin. The money market segment showed
improving returns as well, but long term fixed-income securities experienced a
negative return for the six month period.
In our last letter, we expressed the belief that the economic expansion would
continue in 1997, though at a slower pace than in 1996. This introduced an
element of caution in our forecast. Growth was strong early in the year, but the
pace appears to be slowing. Inflation is passive at present, but fears of wage
pressures have raised concerns among many investors that inflation could rise.
Moreover, the Federal Reserve began "leaning" against growth by raising interest
rates in March. The most favorable aspect of the current environment is the
absence of traditional imbalances that might derail business profitability.
A REVIEW OF THE SIX MONTHS:
Since our last report, the economy has had above-average growth for both of the
last two quarters. The greatest benefit has been to the consumer sector which
experienced both continued job creation and a drop in the unemployment rate
below 5%. Not surprisingly, consumer confidence is at a high level, and spending
is strong. Businesses responded favorably as well, increasing both production
and capacity to meet the rising demand. Inflation, which normally increases
under these circumstances, has been very tame by historical standards. The major
source of inflation concerns among investors is the cost of labor with the
current low unemployment rate. So far, these potential pressures have been
contained.
The fear of future potential inflation was largely responsible for the
deterioration in the bond markets, as well as the sluggish performance of the
stock market in February and March. The yield on the 30-year Treasury bond rose
from 6.4% at the end of November to 7.2% by April before moving lower. Likewise,
the yield on the 3-month Treasury bill backed up from 5.1% to 5.4%, in reaction
to the March rate hike from the Federal Reserve. Fears of an interest rate
increase have been one of the few factors to dampen enthusiasm for equities in
recent quarters. Stock prices fell nearly 10% in March and early April as
evidence began to mount favoring a Fed tightening.
The backup in interest rates helped slow economic activity as the second
quarter progressed. Employment grew more slowly, retail spending dipped and
housing activity edged lower. It soon became apparent that the economy was going
to slow from the rapid pace of late 1996 and early 1997. This lessened pressure
on the Fed to raise interest rates and gave new life to the stock market. The
S&P 500 rose over 13% from early April to the end of May. Likewise, Treasury
bond yields dropped from 7.2% to 6.9% during the same period. Treasury bill
yields also fell back to 5% by the end of May.
THE NEAR TERM ECONOMIC OUTLOOK:
The outlook for the next several quarters is favorable. The lack of excesses by
business and consumers suggests limited need for any significant economic
adjustments. Inventories are at comfortable levels. Consumer confidence is high
and relative debt growth is low. These factors suggest that the economic
expansion that began in the Spring of 1991 is still on track.
1
<PAGE>
The risks to the outlook are still that inflation may move higher in the
months ahead, and that spending growth by consumers may remain excessively high.
Unemployment is low, and delivery speeds from business are slowing. Anecdotal
evidence of skilled labor shortage abounds in many areas of the country. Under
these conditions, the Federal Reserve might see a need for a significant
increase in short term interest rates to reduce inflation pressures. This would
hurt the fixed income markets and corporate earnings during this phase.
However, our expectations are not dire. We look for economic growth to slow
to under 3% in the months ahead, and for the inflation rate to remain in the
2-3% range. This will allow corporate profits to improve and rates to drift
lower as inflation fears ease.
THE OUTLOOK FOR THE FINANCIAL MARKETS:
Our longer term outlook for financial assets remains optimistic, despite some
near-term concerns. The economy is poised to continue along a moderate growth
path with low inflation. This should generate a favorable environment for
corporate earnings, particularly if economic growth among our major trading
partners generates additional demand from overseas. The combination of continued
economic growth and contained inflation should be favorable
to equity prices and bond prices alike.
As we said in our last letter, the key to equity performance in 1997 is
corporate profitability. Competition will remain intense, and companies that
fail to meet market expectations have seen their stock prices fall dramatically.
In this environment, our ongoing focus on quality and value should produce
favorable results for our shareholders.
On behalf of all of us who manage CrestFunds, let me thank you again for the
opportunity to serve you. Please let us know if there is more we can do to help
you fulfill your investment objectives.
Sincerely,
/S/ SIGNATURE
Ben L. Jones, CFA
PRESIDENT
Crestar Asset Management Company
A wholly-owned subsidiary of Crestar Bank
July 1997
2
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
CASH RESERVE FUND
Face
Amount Value
(000) (000)
------ ------
COMMERCIAL PAPER (14.2%)
AUTOMOTIVE (2.4%)
Daimler Benz
5.280%, 07/24/97 ................ $20,000 $ 19,845
- ------------------------------------------------------------
ENTERTAINMENT (1.2%)
Walt Disney
5.250%, 07/25/97 ................ 10,000 9,921
- ------------------------------------------------------------
FINANCIAL SERVICES (6.9%)
General Electric Capital
5.300%, 07/07/97 ................ 25,000 24,868
Merrill Lynch
5.750%, 02/06/98 ................ 25,000 24,002
Strategic Asset Funding
5.510%, 06/30/97 ................ 9,000 8,960
- ------------------------------------------------------------
57,830
- ------------------------------------------------------------
UTILITIES, ELECTRIC, & GAS (3.7%)
AES Shady Point
5.610%, 07/09/97 ................ 17,000 16,899
5.820%, 10/14/97 ................ 15,000 14,673
- ------------------------------------------------------------
31,572
- ------------------------------------------------------------
Total Commercial Paper
(Cost $119,168) ............. 119,168
- ------------------------------------------------------------
CERTIFICATES OF DEPOSIT (20.5%)
Bank of New York
5.930%, 09/03/97 ................ 5,000 4,997
Bank of Tokyo
6.000%, 06/05/97 ................ 10,000 10,000
5.695%, 12/11/97 ................ 15,000 15,000
Barclays Bank (A)
5.620%, 02/19/98 ................ 35,000 34,993
First Alabama Bank
5.970%, 06/23/97 ................ 14,000 14,000
Regions Bank
5.650%, 10/31/97 ................ 10,000 10,000
Sanwa Bank
5.730%, 08/22/97 ................ 35,000 35,001
Societe Generale
5.720%, 10/22/97 ................ 10,000 9,998
5.780%, 01/13/98 ................ 10,000 9,996
5.870%, 03/03/98 ................ 15,000 14,997
Wachovia Bank
6.150%, 04/27/98 ................ 12,000 11,996
- ------------------------------------------------------------
Total Certificates of Deposit
(Cost $170,978) ............. 170,978
- ------------------------------------------------------------
BANK NOTES (6.5%)
FCC National Bank (A)
5.630%, 08/21/97 ................ 20,000 19,997
PNC Bank N.A. (A)
5.640%, 10/01/97 ................ 22,000 21,996
5.650%, 04/24/98 ................ 13,000 12,997
- ------------------------------------------------------------
Total Bank Notes
(Cost $54,990) .............. 54,990
- ------------------------------------------------------------
Face
Amount Value
(000) (000)
------ ------
CORPORATE OBLIGATIONS (19.8%)
BANKS - NATIONAL COMMERCIAL (2.4%)
Bank of New York
6.000%, 03/24/98 ................ $20,000 $19,994
- ------------------------------------------------------------
BUSINESS CREDIT INSTITUTIONS (5.2%)
Ford Motor Credit
7.125%, 12/01/97 ................ 15,000 15,110
General Motors Acceptance MTN
7.000%, 06/02/97 ................ 8,000 8,000
6.125%, 06/09/97 ................ 5,000 5,000
7.000%, 08/15/97 ................ 5,000 5,008
8.375%, 01/30/98 ................ 10,000 10,162
- ------------------------------------------------------------
43,280
- ------------------------------------------------------------
COMPUTERS & SERVICES (1.2%)
IBM Credit Corp. MTN
5.780%, 08/20/97 ................ 10,000 9,997
- ------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (1.2%)
Philip Morris
9.250%, 12/01/97 ................ 10,000 10,173
- ------------------------------------------------------------
SECURITY BROKERAGE/DEALERS (9.9%)
Bear Stearns (A)
5.720%, 04/06/98 ................ 25,000 25,000
Bear Stearns MTN (A)
5.738%, 06/06/97 ................ 8,000 8,000
CS First Boston (A)
5.700%, 04/03/98 ................ 5,000 5,000
5.700%, 04/07/98 ................ 30,000 30,000
Merrill Lynch (A)
5.690%, 05/18/98 ................ 15,000 14,999
- ------------------------------------------------------------
82,999
- ------------------------------------------------------------
Total Corporate Obligations
(Cost $166,443) ............. 166,443
- ------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (6.5%)
FFCB (A)
5.560%, 06/24/97 ................ 25,000 24,998
FHLB
5.780%, 07/08/97 ................ 5,000 4,999
FHLB (A)
5.710%, 07/10/97 ................ 25,000 25,001
- ------------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $54,998) .............. 54,998
- ------------------------------------------------------------
INSURANCE FUNDING AGREEMENTS (8.9%)
General American Life (A)
5.890%, ......................... 40,000 40,000
Integrity Life (A)
5.890%, ......................... 35,000 35,000
- ------------------------------------------------------------
Total Insurance Funding Agreements
(Cost $75,000) .............. 75,000
- ------------------------------------------------------------
3
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
CASH RESERVE FUND (concluded)
Face
Amount Value
(000) (000)
------ ------
REPURCHASE AGREEMENTS (23.3%)
Deutsche Bank
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $96,776,256
(collateralized by FHLMC obligation
par value $104,876,588, 6.230%,
12/15/23; total market value:
$98,666,149) ....................... $96,732 $ 96,732
Merrill Lynch
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $73,994,426
(collateralized by GNMA obligation par
value $75,335,000, 7.000%, 07/15/09;
total market value: $75,442,647) ... 73,960 73,960
Swiss Bank
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $25,147,768
(collateralized by FNMA obligation par
value $32,078,000, 6.071%, 04/01/34;
total market value: $25,764,808) ... 25,136 25,136
- ------------------------------------------------------------
Total Repurchase Agreements
(Cost $195,828) ............... 195,828
- ------------------------------------------------------------
Total Investments (99.7% )
(Cost $837,405) ............... 837,405
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.3%) 2,900
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class ($.001 par
value -- 4.0 billion shares authorized)
based on 751,319,984 outstanding shares. 751,321
Portfolio Shares of Investor Class A
($.001 par value -- .25 billion shares
authorized) based on
88,991,088 outstanding shares ...... 88,992
Portfolio Shares of Investor Class B ($.001
par value -- .25 billion shares
authorized) based on
37,551 outstanding shares .......... 38
Accumulated net realized
loss on investments ................ (46)
- ------------------------------------------------------------
Total Net Assets: (100.0%) ...... $840,305
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(751,278,942 / 751,319,984
SHARES OUTSTANDING) .................. $1.00
- ------------------------------------------------------------
Value
(000)
------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
(88,988,596 / 88,991,088
SHARES OUTSTANDING) .................. $1.00
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B (1)
(37,542 / 37,551
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, 1997. 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.
(1) Investor Class B has a contingent deferred sales charge. For description of
a possible redemption charge, see the notes to the financial statements.
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
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY FUND
Face
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (23.1%)
U.S. Treasury Bills
5.319%, 06/26/97 ............... $ 5,000 $ 4,982
5.930%, 08/21/97 ............... 5,000 4,937
5.602%, 09/18/97 ............... 5,000 4,920
5.350%, 10/16/97 ............... 5,000 4,903
5.370%, 11/13/97 ............... 5,000 4,883
5.410%, 11/13/97 ............... 5,000 4,882
5.430%, 12/11/97 ............... 15,000 14,576
U.S. Treasury Notes
5.875%, 07/31/97 ............... 10,000 10,008
5.500%, 09/30/97 ............... 10,000 10,000
5.625%, 10/31/97 ............... 10,000 10,005
5.000%, 01/31/98 ............... 10,000 9,952
5.000%, 01/31/98 ............... 10,000 9,967
6.125%, 03/31/98 ............... 10,000 10,007
5.875%, 04/30/98 ............... 15,000 14,981
- ------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $119,003) ............ 119,003
- ------------------------------------------------------------
REPURCHASE AGREEMENTS (77.2%)
Deutsche Bank
5.490%, dated 05/30/97, matures
06/02/97, repurchase price $126,276,837
(collateralized by various U.S. Treasury
obligations total par value $126,385,000,
4.750%-6.750%, 11/30/97-05/31/99;
total market value: $128,743,502) 126,219 126,219
J.P. Morgan
5.490%, dated 05/30/97, matures
06/02/97, repurchase price $24,999,456
(collateralized by U.S. Treasury
obligation par value $26,146,000,
0.000%, 11/20/97; total market
value: $25,488,245) ............. 24,988 24,988
Lehman Brothers
5.490%, dated 05/30/97, matures
06/02/97, repurchase price $24,586,210
(collateralized by various U.S. Treasury
obligations total par value $32,014,000,
0.000%, 02/15/00-11/15/09;
total market value: $25,070,219) 24,575 24,575
Merrill Lynch
5.490%, dated 05/30/97, matures 06/02/97,
repurchase price $23,070,244
(collateralized by various U.S.
Treasury obligations total par
value $24,710,000, 0.000%,
02/05/98-05/28/98;
total market value: $23,523,721) 23,060 23,060
Face
Amount Value
(000) (000)
------ ------
Morgan Stanley
5.490%, dated 05/30/97, matures
06/02/97, repurchase price
$24,334,531 (collateralized by
U.S. Treasury obligation par value
$23,620,000, 8.250%, 07/15/98;
total market value: $24,824,245) . $ 24,323 $ 24,323
Prudential Bache
5.490%, dated 05/30/97, matures
06/02/97, repurchase price $24,241,340
(collateralized by various U.S. Treasury
obligations total par value $24,462,000,
6.625%-7.250%, 05/15/07-02/15/98;
total market value: $24,714,971) . 24,230 24,230
Swiss Bank
5.490%, dated 05/30/97, matures
06/02/97, repurchase price $126,960,537
(collateralized by various U.S. Treasury
obligations total par value $128,833,000,
5.875%-7.250%, 07/31/98-08/15/22;
total market value: $130,719,132). 126,903 126,903
Union Bank of Switzerland
5.490%, dated 05/30/97, matures
06/02/97, repurchase price $24,091,091
(collateralized by U.S. Treasury obligation
par value $24,775,000, 5.875%, 11/15/99;
total market value: $24,563,290) . 24,080 24,080
- ------------------------------------------------------------
Total Repurchase Agreements
(Cost $398,378) ............. 398,378
- ------------------------------------------------------------
Total Investments (100.3% )
(Cost $517,381) ............. 517,381
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.37%) (1,344)
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class ($.001 par
value -- 3.75 billion shares authorized)
based on 516,036,664 outstanding shares 516,037
- ------------------------------------------------------------
Total Net Assets: (100.0%) .......... $516,037
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(516,036,666 / 516,036,664
SHARES OUTSTANDING) ...................... $1.00
============================================================
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
TAX-FREE MONEY FUND
Face
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (97.4%)
ARIZONA (3.5%)
Maricopa County, Ser C, GO,
Prerefunded 07/01/97 @ 101
6.625%, 07/01/01 ................... $7,220 $ 7,309
- ------------------------------------------------------------
COLORADO (0.9%)
Arapahoe County, CSX Beckett
Aviation Project, Ser 83 (A) (B)
3.960%, 06/04/97 ................... 1,900 1,900
- ------------------------------------------------------------
FLORIDA (4.9%)
Broward County, Water & Sewer
Utility Improvements, RB, Ser B,
Prerefunded 10/01/97 @ 102
7.500%, 10/01/06 ................... 1,535 1,586
Gainesville, Utilities System Improvements,
Ser A, RB, Prerefunded 10/01/97 @ 102
7.000%, 10/01/98 ................... 1,000 1,030
Manatee County, Multi-Family Housing
Authority Hampton Project, RB (A) (B)
3.950%, 06/04/97 ................... 3,850 3,850
Tampa, Occupational License Tax,
Ser A, RB FGIC (A) (B)
3.900%, 06/04/97 ................... 3,600 3,600
- ------------------------------------------------------------
10,066
- ------------------------------------------------------------
GEORGIA (6.0%)
Cobb County, Rhodes Home
Project, RB (A) (B)
3.950%, 06/04/97 ................... 2,125 2,125
Columbus, Water & Sewer Utility
Improvements, RB,
Prerefunded 11/01/97 @ 102
7.600%, 05/01/08 ................... 1,000 1,037
Fulco County, TECP (B)
3.400%, 06/09/97 ................... 5,200 5,200
Georgia State Public
Improvements, Ser D, GO
7.400%, 08/01/97 ................... 2,065 2,077
Georgia State University
Improvements, Ser D, GO
7.000%, 11/01/97 ................... 2,000 2,029
- ------------------------------------------------------------
12,468
- ------------------------------------------------------------
INDIANA (1.8%)
Fort Wayne, Parkview Memorial
Hospital Project, Ser B, RB (A) (B)
3.850%, 06/05/97 ................... 3,700 3,700
- ------------------------------------------------------------
LOUISIANA (1.8%)
Louisiana State Refunding Bond, Ser A, GO,
Prerefunded 08/01/97 @ 102 AMBAC
7.000%, 08/01/02 ................... 1,465 1,502
Face
Amount Value
(000) (000)
------ ------
Louisiana State, Public Facilities Authority,
Willis Knighton Medical Project,
RB, AMBAC (A)
3.900%, 06/04/97 ................... $2,100 $ 2,100
- ------------------------------------------------------------
3,602
- ------------------------------------------------------------
MARYLAND (4.4%)
Baltimore County, TECP
3.450%, 07/02/97 ................... 4,000 4,000
3.550%, 07/07/97 ................... 3,000 3,000
Maryland State Department of
Transportation, RB
3.625%, 06/15/98 ................... 2,000 1,992
- ------------------------------------------------------------
8,992
- ------------------------------------------------------------
MASSACHUSETTS (2.5%)
Massachusetts State Municipal
Wholesale Electric Company Project, RB,
Prerefunded 07/01/97 @ 102
8.750%, 07/01/18 ................... 5,000 5,120
- ------------------------------------------------------------
NEVADA (1.0%)
Washoe County, School District
Improvements, GO, Prerefunded
08/01/97 @ 102
7.750%, 08/01/06 ................... 2,000 2,053
- ------------------------------------------------------------
NEW JERSEY (2.9%)
Jersey City, GO, Prerefunded
10/01/97 @ 102, AMBAC
7.500%, 10/01/01 ................... 1,000 1,032
New Jersey State TECP
3.450%, 06/04/97 5,000 5,000
- ------------------------------------------------------------
6,032
- ------------------------------------------------------------
NEW YORK (6.3%)
New York City, Health & Hospital,
Ser A, RB (A) (B)
3.800%, 06/04/97 ................... 5,000 5,000
New York State Local Assistance,
Ser B, RB (A)
3.800%, 06/04/97 ................... 8,000 8,000
- ------------------------------------------------------------
13,000
- ------------------------------------------------------------
NORTH CAROLINA (2.0%)
North Carolina State Medical Care
Community Pooled Finance Project,
Ser A, RB, (A) (B)
4.100%, 06/04/97 ................... 4,200 4,200
- ------------------------------------------------------------
PENNSYLVANIA (2.9%)
Pittsburgh, Refunding Bonds,
GO, Ser A MBIA
5.000%, 03/01/98 ................... 6,000 6,058
- ------------------------------------------------------------
6
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
TAX-FREE MONEY FUND (continued)
Face
Amount Value
(000) (000)
------ ------
SOUTH CAROLINA (6.3%)
Florence County, McLeod Regional
Medical Center Project,
Ser A, RB, FGIC (A)
3.950%, 06/04/97 .................. $8,200 $ 8,200
South Carolina State Columbia Mill
Building Project, RB MBIA
5.850%, 02/01/98 .................. 1,775 1,800
South Carolina State Public Service
Authority, Ser A, RB MBIA
6.000%, 01/01/98 .................. 3,000 3,041
- ------------------------------------------------------------
13,041
- ------------------------------------------------------------
TENNESSEE (3.5%)
Franklin County, Health &
Educational Facilities Authority,
University of the South
Project, RB (A) (B)
3.950%, 06/04/97 .................. 6,300 6,300
Metropolitan Government Nashville &
Davidson County, TN, Electric
Refunding Bond, Ser A, RB,
Prerefunded 07/01/97 @ 102
6.900%, 07/01/99 .................. 1,000 1,023
- ------------------------------------------------------------
7,323
- ------------------------------------------------------------
TEXAS (5.6%)
Harris County, Highway Revenue
Tolls Project, Ser B, RB,
Prerefunded 08/15/97 @ 102
6.625%, 08/15/11 .................. 2,520 2,584
Plano, TECP, MBIA
3.400%, 06/11/97 .................. 9,000 9,000
- ------------------------------------------------------------
11,584
- ------------------------------------------------------------
VIRGINIA (39.4%)
Chesterfield County, Industrial
Development Authority,
Philip Morris Companies
Project, RB (A) (B)
4.050%, 06/04/97 .................. 5,500 5,500
Colonial Heights, Industrial
Development Authority,
Philip Morris Companies
Project, RB (A) (B)
4.050%, 06/04/97 .................. 2,600 2,600
Commonwealth of Virginia, TECP
3.500%, 06/30/97 .................. 1,300 1,300
Fairfax County, Public Improvements,
Ser B, GO (B)
6.000%, 06/01/98 .................. 2,410 2,459
Fauquier County, Industrial
Development Authority,
Carter Machinery Project, RB (A) (B)
3.950%, 06/04/97 .................. 1,336 1,336
Face
Amount Value
(000) (000)
------ ------
Greensville County, Industrial
Development Authority Georgia Pacific
Project, RB (A) (B)
3.950%, 06/04/97 .................. $3,850 $3,850
Hanover County, Industrial
Development Authority, Carter
Machinery Project, RB (A) (B)
3.950%, 06/04/97 .................. 500 500
Louisa County, Industrial Development
Authority, RB (A) (B)
3.950%, 06/04/97 .................. 5,000 5,000
Newport News, Public Housing
Authority, H & S Association
Project (A) (B)
3.950%, 06/04/97 .................. 1,051 1,051
Norfolk, Water Utilities Improvements,
GO, Prerefunded 06/01/97 @ 102
6.600%, 06/01/02 .................. 1,000 1,020
Prince William, TECP
3.700%, 06/23/97 .................. 4,000 4,000
Pulaski County, Industrial
Development Authority,
Pulaski Furniture, RB (A) (B)
3.950%, 06/04/97 .................. 4,219 4,219
Richmond, Industrial Development
Authority, Philip Morris Companies
Project, RB (A) (B)
4.050%, 06/04/97 .................. 1,700 1,700
Richmond, Public Housing
Authority Old Manchester
Project, Ser A, RB (A) (B)
4.100%, 06/04/97 .................. 8,550 8,550
Richmond, Redevelopment
Housing Authority, Stony Point
Project, RB (A) (B)
4.000%, 06/04/97 .................. 1,800 1,800
Roanoke County, Industrial
Development Authority, Roanoke
Memorial Hospital Project,
Ser C, RB (A) (B)
3.950%, 06/04/97 .................. 3,645 3,645
Roanoke County, Industrial
Development Authority,
Roanoke Memorial Hospital
Project, Ser D, RB (A) (B)
3.950%, 06/04/97 .................. 4,920 4,920
Rockingham County, Higher
Educational Institutions,
Eastern Mennonite
University, RB (A) (B)
3.950%, 06/04/97 .................. 2,500 2,500
Virginia Beach, Industrial Development
Authority, Fountainhead
Project, RB (A) (B)
3.950%, 06/04/97 .................. 2,939 2,939
7
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
TAX-FREE MONEY FUND (concluded)
Face
Amount Value
(000) (000)
------ ------
Virginia State College Building Authority,
Equipment Leasing Program, RB
3.850%, 02/01/98 ................... $7,710 $ 7,707
Virginia State Public School
Authority, Ser A, RB
6.000%, 08/01/97 ................... 1,000 1,004
Virginia State Transportation Board,
US Route 58 Corridor Project, RB,
Prerefunded 5/15/98 @ 102
6.800%, 05/15/09 ................... 5,000 5,226
York County, Industrial Development
Authority, Philip Morris Companies
Project, RB (A) (B)
4.100%, 06/04/97 ................... 2,700 2,700
York County, Industrial Development
Authority, TECP
3.700%, 06/26/97 ................... 6,000 6,000
- ------------------------------------------------------------
81,526
- ------------------------------------------------------------
WASHINGTON (1.7%)
Seattle, Sewer Authority, RB, Prerefunded
01/01/98 @ 102 AMBAC
7.375%, 01/01/30 ................... 2,000 2,082
Tacoma, Electric System, RB, Prerefunded
01/01/98 @ 102 AMBAC
8.000%, 01/01/08 ................... 1,440 1,504
- ------------------------------------------------------------
3,586
- ------------------------------------------------------------
Total Municipal Bonds
(Cost $201,560) ................ 201,560
- ------------------------------------------------------------
CASH EQUIVALENTS (2.1%)
Financial Square Tax Free Portfolio ... 4,035 4,035
SEI Institutional Tax Free Portfolio .. 239 239
- ------------------------------------------------------------
Total Cash Equivalents
(Cost $4,274) .................. 4,274
- ------------------------------------------------------------
Total Investments (99.5%)
(Cost $205,834) ................ 205,834
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.5%) 1,142
- ------------------------------------------------------------
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class ($.001 par
value -- .9 billion shares
authorized) based on
200,509,425 outstanding shares ...... $200,510
Portfolio Shares of Investor Class A ($.001
par value -- .1 billion shares
authorized) based on 6,471,407
outstanding shares .................. 6,471
Accumulated net realized
loss on investments ................. (5)
- ------------------------------------------------------------
Total Net Assets: (100.0%) ....... $206,976
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(200,504,661 / 200,509,425
SHARES OUTSTANDING) ................... $1.00
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
(6,471,229 / 6,471,407
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, 1997. 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
TECP--Tax Exempt Commercial Paper
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
LIMITED TERM BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (5.9%)
U.S. Treasury Notes
7.000%, 04/15/99 ................... $1,000 $ 1,014
5.625%, 11/30/00 ................... 500 488
6.375%, 08/15/02 ................... 1,000 994
5.750%, 08/15/03 ................... 2,000 1,918
- ------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $4,518) .................. 4,414
- ------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (16.5%)
FFCB
6.470%, 03/20/02 ................... 2,500 2,482
FFCB MTN
7.125%, 06/01/01 ................... 1,000 1,016
8.600%, 05/30/06 ................... 1,000 1,055
FHLB
5.870%, 06/26/98 ................... 2,000 1,998
FHLMC
5.980%, 12/08/05 ................... 1,000 941
FNMA MTN
6.610%, 03/24/99 ................... 1,750 1,760
6.310%, 11/02/00 ................... 500 496
6.250%, 01/14/04 ................... 1,000 958
6.770%, 09/01/05 ................... 1,750 1,732
- ------------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $12,620) ................. 12,438
- ------------------------------------------------------------
MORTGAGE-BACKED SECURITIES (21.8%)
FHLMC Pool D71261
7.500%, 05/01/26 ................... 1,909 1,905
FHLMC Pool E00412
7.000%, 01/01/11 ................... 1,737 1,727
FHLMC Pool G10664
7.000%, 02/01/12 ................... 4,937 4,909
FNMA ARM Pool 305168 (A)
7.735%, 10/01/24 ................... 888 932
FNMA Pool 250820
7.000%, 01/01/27 ................... 2,475 2,409
FNMA Pool 356039
6.500%, 08/01/03 ................... 2,873 2,830
FNMA REMIC 92-199A
5.250%, 11/25/99 ................... 677 670
GNMA Pool 207206
9.750%, 03/15/99 ................... 26 28
GNMA Pool 433176
8.000%, 08/15/26 ................... 976 995
- ------------------------------------------------------------
Total Mortgage-Backed Securities
(Cost $16,412) ................. 16,405
- ------------------------------------------------------------
CORPORATE OBLIGATIONS (24.9%)
AGRICULTURE (2.6%)
Alcan Aluminum
5.875%, 04/01/00 ................... 2,000 1,960
- ------------------------------------------------------------
Face Market
Amount Value
(000) (000)
------ ------
BANKS (2.6%)
Capital One Bank MTN
6.830%, 05/17/99 ................... $2,000 $ 1,997
- ------------------------------------------------------------
BUSINESS CREDIT INSTITUTIONS (4.6%)
General Motors Acceptance
7.750%, 01/15/99 ................... 1,500 1,532
USL Capital
6.500%, 12/01/03 ................... 2,000 1,950
- ------------------------------------------------------------
3,482
- ------------------------------------------------------------
ELECTRICAL SERVICES (1.3%)
Detroit Edison
6.400%, 10/01/98 ................... 975 975
- ------------------------------------------------------------
FINANCIAL SERVICES (4.0%)
Macsaver Financial Services
7.875%, 08/01/03 ................... 3,000 2,996
- ------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (2.7%)
Philip Morris
6.375%, 01/15/98 ................... 2,000 2,007
- ------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (2.6%)
United Dominion Realty
7.250%, 01/15/07 ................... 2,000 1,977
- ------------------------------------------------------------
SECURITY BROKERAGE/DEALERS (4.5%)
Jefferies Group
8.875%, 05/01/04 ................... 2,000 2,067
Salomon Brothers
7.125%, 08/01/99 ................... 1,300 1,313
- ------------------------------------------------------------
3,380
- ------------------------------------------------------------
Total Corporate Obligations
(Cost $18,880) ................. 18,774
- ------------------------------------------------------------
ASSET BACKED SECURITIES (16.8%)
AUTOMOTIVE (3.8%)
Chase Manhattan Grantor Trust, Ser 1995-B
5.900%, 11/15/01 ................... 912 912
Ford Credit Auto Owner Trust, Ser 1996-A A2
6.300%, 12/15/98 ................... 1,649 1,653
Premier Auto Trust, Ser 1993-5 A2
4.220%, 03/02/99 ................... 263 263
- ------------------------------------------------------------
2,828
- ------------------------------------------------------------
CREDIT CARDS (5.3%)
Advanta Credit Card Master Trust, Ser 1995-F A1
6.050%, 08/01/03 ................... 1,000 977
American Express Master Trust, Ser 1992-2 A
6.600%, 05/15/00 ................... 2,000 2,005
Spiegel Master Trust, Ser 1995-A
7.500%, 09/15/04 ................... 1,000 1,023
- ------------------------------------------------------------
4,005
- ------------------------------------------------------------
9
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
LIMITED TERM BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
HOME EQUITY (6.6%)
CoreStates Home Equity Trust, Ser 1994-1A
6.650%, 05/15/09 ................. $ 662 $ 657
EQCC Home Equity Loan Trust, Ser 1994-1 A
5.800%, 03/15/09 ................. 967 935
Equivantage, Ser 1996-1 A1
6.550%, 10/25/25 ................. 1,276 1,251
Greentree Manufacturing Housing, Ser 1995-7 A2
6.150%, 11/15/26 ................. 963 963
The Money Store Home Equity Trust, Ser 1995-A1
7.925%, 02/15/14 ................. 1,183 1,202
- ------------------------------------------------------------
5,008
- ------------------------------------------------------------
MOTOR HOMES (1.1%)
CIT RV Grantor Trust, Ser 1994-A A
4.900%, 07/15/09 ................. 837 811
- ------------------------------------------------------------
Total Asset Backed Securities
(Cost $12,673) ............... 12,652
- ------------------------------------------------------------
CASH EQUIVALENT (4.4%)
Aim Liquid Assets Portfolio ......... 3,340 3,340
- ------------------------------------------------------------
Total Cash Equivalent
(Cost $3,340) ................ 3,340
- ------------------------------------------------------------
REPURCHASE AGREEMENT (9.9%)
J.P. Morgan
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $7,482,711
(collateralized by GNMA obligation
par value $7,659,818, 6.000%, 08/20/26;
total market value: $7,628,837) .... 7,479 7,479
- ------------------------------------------------------------
Total Repurchase Agreement
(Cost $7,479) ................. 7,479
- ------------------------------------------------------------
Total Investments (100.2%)
(Cost $75,922) ................ 75,502
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-0.2%) (129)
- ------------------------------------------------------------
Market
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 1.4 billion shares
authorized) based on 7,611,451
outstanding shares ................. $76,702
Portfolio Shares of Investor Class A
($.001 par value -- .1 billion shares
authorized) based on 95,298
outstanding shares ................. 980
Undistributed net investment income .. 1
Accumulated net realized loss
on investments ..................... (1,890)
Net unrealized depreciation
on investments ..................... (420)
- ------------------------------------------------------------
Total Net Assets: (100.0%) ...... $75,373
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(74,438,147 / 7,611,451
SHARES OUTSTANDING) .................. $9.78
- ------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
(934,352 / 95,298 SHARES OUTSTANDING) $9.80
- ------------------------------------------------------------
OFFER PRICE PER SHARE -- INVESTOR CLASS A
($9.80 / 98.0%) ...................... $10.00
============================================================
(A) Floating Rate Security--the rate reflected on the Statement
of Net Assets is the rate in effect on May 31, 1997. 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
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
REMIC--Real Estate Mortgage Investment Conduit
Ser--Series
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (15.5%)
U.S. Treasury Bonds
8.000%, 11/15/21 .................. $ 5,000 $ 5,572
7.125%, 02/15/23 .................. 6,000 6,084
6.250%, 08/15/23 .................. 4,000 3,643
U.S. Treasury Notes
6.875%, 07/31/99 .................. 2,000 2,025
8.000%, 08/15/99 .................. 3,700 3,829
8.000%, 05/15/01 .................. 2,000 2,104
7.875%, 08/15/01 .................. 1,000 1,050
7.500%, 11/15/01 .................. 2,000 2,076
6.375%, 08/15/02 .................. 2,000 1,988
7.250%, 05/15/04 .................. 5,000 5,181
7.875%, 11/15/04 .................. 5,200 5,576
7.500%, 02/15/05 .................. 5,000 5,252
- ------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $43,343) ................ 44,380
- ------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (9.8%)
FFCB
6.470%, 03/20/02 .................. 10,850 10,772
FFCB MTN
7.125%, 06/01/01 .................. 2,500 2,539
FHLMC
5.980%, 12/08/05 .................. 1,000 941
FNMA
8.350%, 11/10/99 .................. 1,000 1,048
6.380%, 06/25/03 .................. 5,000 4,876
FNMA MTN
6.250%, 01/14/04 .................. 3,300 3,163
6.770%, 09/01/05 .................. 3,000 2,970
International Bank Reconstruction &
Development MTN
9.100%, 06/01/99 .................. 1,500 1,581
- ------------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $28,256) ................ 27,890
- ------------------------------------------------------------
MORTGAGE-BACKED SECURITIES (33.89%)
FHLMC Pool D71261
7.500%, 05/01/26 .................. 6,778 6,762
FHLMC Pool E00412
7.000%, 01/01/11 .................. 1,824 1,814
FHLMC Pool G10664
7.000%, 02/01/12 .................. 12,937 12,860
FHLMC REMIC 1459 H
7.000%, 07/15/19 .................. 10,087 9,937
FHLMC REMIC 1726 B
6.750%, 11/15/04 .................. 7,000 6,938
FNMA Pool 250820
7.000%, 01/01/27 .................. 10,000 9,732
FNMA Pool 356039
6.500%, 08/01/03 .................. 3,401 3,350
FNMA REMIC 1993-127 K
6.500%, 10/25/21 .................. 4,500 4,340
FNMA REMIC 91-01 1G
7.000%, 01/25/21 .................. 1,343 1,315
GNMA Pool 207206
9.750%, 03/15/99 .................. 42 45
GNMA Pool 376345
6.500%, 12/15/23 .................. 7,616 7,200
Face Market
Amount Value
(000) (000)
------ ------
GNMA Pool 433176
8.000%, 08/15/26 .................. $ 7,435 $ 7,575
GNMA Pool 780429
7.500%, 09/15/26 .................. 24,485 24,470
- ------------------------------------------------------------
Total Mortgage-Backed Securities
(Cost $96,389) ................ 96,338
- ------------------------------------------------------------
CORPORATE OBLIGATIONS (28.6%)
AUTOMOTIVE (2.5%)
Ford Motor
7.500%, 11/15/99 .................. 1,000 1,021
General Motors
7.000%, 06/15/03 .................. 6,000 5,992
- ------------------------------------------------------------
7,013
- ------------------------------------------------------------
BANKS -- NATIONAL COMMERCIAL (5.3%)
Capital One Bank MTN
6.830%, 05/17/99 .................. 2,250 2,247
Central Fidelity
8.150%, 11/15/02 .................. 3,000 3,135
First Fidelity
8.500%, 04/01/98 .................. 2,000 2,040
Mellon Bank
6.500%, 08/01/05 .................. 2,000 1,905
NationsBank
6.875%, 02/15/05 .................. 5,000 4,881
Sovran Financial
9.750%, 06/15/99 .................. 1,000 1,061
- ------------------------------------------------------------
15,269
- ------------------------------------------------------------
BUSINESS CREDIT INSTITUTIONS (3.4%)
Ford Motor Credit
6.750%, 05/15/05 .................. 6,000 5,812
General Motors Acceptance
8.500%, 01/01/03 .................. 1,000 1,065
General Motors Acceptance MTN
7.000%, 03/01/00 .................. 1,000 1,007
USL Capital
6.500%, 12/01/03 .................. 2,000 1,950
- ------------------------------------------------------------
9,834
- ------------------------------------------------------------
FINANCIAL SERVICES (3.3%)
Macsaver Financial Services
7.875%, 08/01/03 .................. 9,400 9,388
- ------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (2.1%)
Joseph E. Seagram & Sons
7.000%, 04/15/08 .................. 5,000 4,887
Philip Morris
7.125%, 08/15/02 .................. 1,000 991
- ------------------------------------------------------------
5,878
- ------------------------------------------------------------
HOTELS & LODGING (0.6%)
Marriott International
7.125%, 06/01/07 .................. 1,750 1,693
- ------------------------------------------------------------
11
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
PETROLEUM & FUEL PRODUCTS (0.6%)
Occidental Petroleum
8.500%, 11/09/01 ................. $ 1,500 $ 1,584
- ------------------------------------------------------------
RETAIL (1.7%)
KMart
8.125%, 12/01/06 ................. 5,000 4,913
- ------------------------------------------------------------
SECURITY BROKERAGE/DEALERS (7.5%)
Jefferies Group
8.875%, 05/01/04 ................. 7,000 7,236
Lehman Brothers
10.000%, 05/15/99 ................ 3,000 3,184
Morgan Stanley
6.375%, 12/15/03 ................. 1,000 968
Salomon Brothers
7.200%, 02/01/04 ................. 10,000 9,938
- ------------------------------------------------------------
.................................... 21,326
- ------------------------------------------------------------
UTILITIES, ELECTRIC, & GAS (1.7%)
Gulf States Utilities
6.770%, 08/01/05 ................. 5,000 4,706
- ------------------------------------------------------------
Total Corporate Obligations
(Cost $82,366) ............... 81,604
- ------------------------------------------------------------
ASSET BACKED SECURITIES (6.8%)
American Express Master Trust, Ser 1992-2 A
6.600%, 05/15/00 ................. 6,350 6,366
CIT RV Grantor Trust, Ser 1994-A A
4.900%, 07/15/09 ................. 565 548
EQCC Home Equity Loan Trust, Ser 1994-1 A
5.800%, 03/15/09 ................. 956 923
Ford Credit Auto Owner Trust, Ser 1996-A A2
6.300%, 12/15/98 ................. 3,331 3,338
Greentree Financial, Ser 1995-9 A2
6.000%, 01/15/27 ................. 1,975 1,961
Greentree Manufacturing Housing, Ser 1995-7 A2
6.150%, 11/15/26 ................. 1,926 1,927
Olympic Automobile Receivables Trust, Ser 1995-D A4
6.050%, 11/15/00 ................. 3,700 3,701
The Money Store Home Equity Trust, Ser 1995-A1
7.925%, 02/15/14 ................. 739 751
- ------------------------------------------------------------
Total Asset Backed Securities
(Cost $19,465) ............... 19,515
- ------------------------------------------------------------
CASH EQUIVALENT (4.1%)
Aim Liquid Assets Portfolio ......... 11,647 11,647
- ------------------------------------------------------------
Total Cash Equivalent
(Cost $11,647) ............... 11,647
- ------------------------------------------------------------
Face Market
Amount Value
(000) (000)
------ ------
REPURCHASE AGREEMENT (0.7%)
J.P. Morgan
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $2,099,543
(collateralized by GNMA obligation par
value $2,149,289, 6.000%, 08/20/26;
total market value: $2,140,596) ...... $2,099 $ 2,099
- ------------------------------------------------------------
Total Repurchase Agreement
(Cost $2,099) ................... 2,099
- ------------------------------------------------------------
Total Investments (99.3% )
(Cost $283,565) ................. 283,473
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.7%) 1,946
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class ($.001
par value -- 1.4 billion shares
authorized) based on 29,252,175
outstanding shares ................... 286,846
Portfolio Shares of Investor Class A
($.001 par value -- .1 billion shares
authorized) based on
198,639 outstanding shares ........... 1,977
Overdistributed net investment income .. 32
Accumulated net realized loss
on investments ....................... (3,344)
Net unrealized depreciation
on investments ....................... (92)
- ------------------------------------------------------------
Total Net Assets: (100.0%) ........ $285,419
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(283,493,065 / 29,252,175
SHARES OUTSTANDING) .................... $9.69
- ------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
(1,926,008 / 198,637
SHARES OUTSTANDING) .................... $9.70
- ------------------------------------------------------------
OFFER PRICE PER SHARE-- INVESTOR CLASS A
($9.70 / 97.0%) ........................ $10.00
============================================================
FFCB--Federal Farm Credit Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
MTN--Medium Term Note
REMIC--Real Estate Mortgage Investment Conduit
Ser--Series
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- -------------------------------------------------------------------------------
GOVERNMENT BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (33.1%)
U.S. Treasury Bonds
8.750%, 11/15/08 ................... $ 500 $ 552
6.500%, 11/15/26 ................... 2,750 2,594
U.S. Treasury Notes
8.750%, 08/15/00 ................... 1,000 1,067
5.625%, 02/28/01 ................... 5,500 5,351
6.625%, 07/31/01 ................... 1,000 1,004
6.375%, 08/15/02 ................... 500 497
5.750%, 08/15/03 ................... 1,000 959
6.750%, 08/15/26 ................... 300 292
- ------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $12,442) ................. 12,316
- ------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (5.8%)
FFCB
6.470%, 03/20/02 ................... 1,100 1,092
FHLMC
6.395%, 05/16/00 ................... 500 499
5.980%, 12/08/05 ................... 350 329
FNMA MTN
6.770%, 09/01/05 ................... 250 247
- ------------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $2,204) .................. 2,167
- ------------------------------------------------------------
MORTGAGE-BACKED SECURITIES (37.9%)
FHLMC Pool D71261
7.500%, 05/01/26 ................... 381 381
FHLMC Pool E00412
7.000%, 01/01/11 ................... 480 477
FHLMC Pool G10664
7.000%, 02/01/12 ................... 1,481 1,473
FNMA Pool 250820
7.000%, 01/01/27 ................... 742 723
FNMA Pool 356039
6.500%, 08/01/03 ................... 239 236
FNMA REMIC 1996-30 PC
7.000%, 11/25/20 ................... 4,600 4,606
GNMA Pool 352020
6.500%, 11/15/23 ................... 614 581
GNMA Pool 433176
8.000%, 08/15/26 ................... 488 497
GNMA Pool 780429
7.500%, 09/15/26 ................... 5,148 5,145
- ------------------------------------------------------------
Total Mortgage-Backed Securities
(Cost $14,127) ................. 14,119
- ------------------------------------------------------------
CORPORATE OBLIGATIONS (14.5%)
BANKS (0.7%)
Capital One Bank MTN
6.830%, 05/17/99 ................... 250 250
- ------------------------------------------------------------
BUSINESS CREDIT INSTITUTIONS (0.7%)
General Motors Acceptance
7.750%, 01/15/99 ................... 250 255
- ------------------------------------------------------------
Face Market
Amount Value
(000) (000)
------ ------
COMPUTERS & SERVICES (0.7%)
IBM
6.375%, 06/15/00 ................... $ 250 $ 249
- ------------------------------------------------------------
FINANCIAL SERVICES (2.6%)
Macsaver Financial Services
7.400%, 02/15/02 ................... 1,000 983
- ------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (0.7%)
Philip Morris
7.625%, 05/15/02 ................... 250 254
- ------------------------------------------------------------
HOTELS & LODGING (0.6%)
Marriott International
7.125%, 06/01/07 ................... 250 242
- ------------------------------------------------------------
PERSONAL CREDIT INSTITUTIONS (1.3%)
Associates of North America
6.000%, 03/15/99 ................... 250 248
6.000%, 03/15/00 ................... 250 246
- ------------------------------------------------------------
494
- ------------------------------------------------------------
SECURITY BROKERAGE/DEALERS (6.5%)
Jefferies Group
8.875%, 05/01/04 ................... 1,000 1,034
Salomon Brothers
7.200%, 02/01/04 ................... 1,375 1,366
- ------------------------------------------------------------
2,400
- ------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (0.7%)
AT&T
7.000%, 05/15/05 ................... 250 248
- ------------------------------------------------------------
Total Corporate Obligations
(Cost $5,380) .................. 5,375
- ------------------------------------------------------------
ASSET BACKED SECURITIES (5.3%)
EQCC Home Equity Loan Trust,
Ser 1994-1 A
5.800%, 03/15/09 ................... 119 115
Greentree Financial,
Ser 1995-9 A2
6.000%, 01/15/27 ................... 592 588
Honda Auto Receivables Grantor Trust,
Ser 1995-A
6.200%, 12/15/00 ................... 325 327
Olympic Automobile Receivables Trust,
Ser 1995-D A4
6.050%, 11/15/00 ................... 800 800
The Money Store Home Equity Trust,
Ser 1995-A1
7.925%, 02/15/14 ................... 147 150
- ------------------------------------------------------------
Total Asset Backed Securities
(Cost $1,982) .................. 1,980
- ------------------------------------------------------------
13
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
REPURCHASE AGREEMENT (2.6%)
J.P. Morgan
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $972,392
(collateralized by GNMA obligation
par value $971,463, 8.000%, 01/01/00;
total market value: $991,382) ........ $972 $ 972
- ------------------------------------------------------------
Total Repurchase Agreement
(Cost $972) ..................... 972
- ------------------------------------------------------------
Total Investments (99.2% )
(Cost $37,107) .................. 36,929
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.8%) 308
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class ($.001
par value -- .75 billion shares
authorized) based on 3,613,836
outstanding shares ................... 36,812
Portfolio Shares of Investor Class B ($.001
par value -- .125 billion shares
authorized) based on 83,374
outstanding shares ................... 864
Accumulated net realized loss
on investments ....................... (261)
Net unrealized depreciation
on investments ....................... (178)
- ------------------------------------------------------------
Total Net Assets: (100.0%) ........ $37,237
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(36,395,601 / 3,613,836
SHARES OUTSTANDING) .................... $10.07
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B (1)
(841,819 / 83,374 SHARES OUTSTANDING) .. $10.10
============================================================
(1) Investor Class B has a contingent deferred sales charge for a description of
a possible redemption charge, see the notes to the financial statements.
FFCB--Federal Farm Credit Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
MTN--Medium Term Note
REMIC--Real Estate Mortgage Investment Conduit
Ser--Series
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (98.6%)
VIRGINIA
Alexandria, Industrial Development
Authority, RB
7.200%, 01/01/98 ................... $1,000 $1,007
Arlington County, Public Improvements,
GO, Callable 08/01/04 @ 102
5.750%, 08/01/08 ................... 2,500 2,631
Augusta, Hospital Project, RB,
Prerefunded 09/01/01 @ 102
7.000%, 09/01/21 ................... 2,000 2,222
Big Stone Gap, Redevelopment & Housing
Authority Wallens Ridge Project,
RB, Callable 09/01/05 @ 102
5.250%, 09/01/10 ................... 3,600 3,537
Chesapeake Bay, Bridge & Tunnel Authority,
RB, Prerefunded 07/01/01 @102 MBIA
6.375%, 07/01/22 ................... 9,000 9,775
Chesapeake, Hospital Authority,
General Hospital Project, RB,
Callable 07/01/00 @ 102
8.200%, 07/01/05 ................... 1,000 1,104
Chesapeake, Public Improvements, GO
5.800%, 08/01/02 ................... 2,000 2,095
Chesapeake, Refunding Bond, GO
5.400%, 12/01/08 ................... 2,500 2,569
Chesterfield County, Refunding Bond, GO
5.650%, 07/15/00 ................... 3,000 3,112
Chesterfield County, Health Center
Community Project, RB,
Callable 12/01/06 @ 102
5.875%, 12/01/21 ................... 500 504
Chesterfield County, Public Improvements,
GO, Callable 07/15/02 @ 101.50
5.875%, 07/15/09 ................... 2,000 2,090
Danville, School Improvements, GO,
Callable 08/01/03 @ 102 MBIA
5.400%, 08/01/08 ................... 500 509
Fairfax County, Industrial Development
Authority, Inova Health System Project,
RB, Callable 08/15/06 @ 102
5.300%, 08/15/07 ................... 1,500 1,519
Fairfax County, Refunding Bond,
Ser B, GO, Callable 11/01/99 @ 100.50
5.500%, 05/01/01 ................... 2,500 2,566
Fairfax County, School Improvements,
GO, Callable 06/01/01 @ 102
5.200%, 06/01/13 ................... 5,000 4,900
Fairfax County, Sewer Authority, RB
5.625%, 07/15/01 ................... 1,000 1,042
Fairfax County, Sewer Authority,
RB, Callable 11/15/03 @ 102, AMBAC
5.400%, 11/15/07 ................... 2,000 2,060
5.500%, 11/15/09 ................... 3,000 3,071
Fauquier County, School Improvements,
GO, Callable 07/15/03 @ 102
5.550%, 07/15/09 ................... 800 816
Face Market
Amount Value
(000) (000)
------ ------
Fredericksburg, Industrial Development
Authority Hospital Facilities Project,
RB, Callable 06/15/07 @ 102 AMBAC
5.250%, 06/15/16 ................... $5,000 $4,794
Hampton, Public Improvements,
Ser C, GO, Callable 08/01/03 @ 102
4.800%, 08/01/06 ................... 1,000 975
Hampton, Sanitation District Wastewater
Authority, RB, Callable 10/01/03 @ 102
4.900%, 10/01/06 ................... 2,000 1,990
Harrisonburg, Industrial Development
Authority Rockingham,
Memorial Hospital Project,
RB, Callable 12/01/02 @ 102 MBIA
5.750%, 12/01/13 ................... 3,000 3,007
Harrisonburg, Refunding Bond, GO
6.000%, 08/01/99 ................... 1,000 1,034
6.100%, 08/01/00 ................... 1,000 1,046
Henrico County, Industrial Development
Authority, Westminister Project, RB
7.300%, 10/01/99 ................... 1,060 1,073
Henrico County, Industrial Development
Authority, Governmental Projects,
RB, Callable 06/01/06 @ 102
5.150%, 06/01/07 ................... 2,500 2,497
Henrico County, Industrial Development
Authority, Browning Ferris Project, RB,
Mandatory Put 12/01/05 @ 100 (A)
5.300%, 06/01/97 ................... 1,000 994
Henry County, Public Improvements,
GO, Callable 07/15/04 @ 102
6.000%, 07/15/14 ................... 1,000 1,030
James Madison University, RB,
Callable 06/01/03 @ 102
5.375%, 06/01/09 ................... 500 494
Loudoun County, Sanitation Authority, RB,
Callable 04/01/03 @ 102, FGIC
5.900%, 01/01/02 ................... 1,000 1,054
Loudoun County, Sanitation Authority, RB,
Callable 01/01/03 @ 102, FGIC
6.100%, 01/01/04 ................... 1,250 1,342
Lynchburg, Refunding Bond, GO,
Callable 04/01/03 @ 102
5.250%, 04/01/08 ................... 2,000 2,027
Newport News, Public Improvements,
Ser A, GO, Callable 01/15/06 @ 102
5.200%, 01/15/16 ................... 960 917
Newport News, Public Improvements,
Ser A, GO, Callable 07/01/05 @ 102 MBIA
5.500%, 07/01/12 ................... 2,500 2,506
Newport News, Public Housing Authority,
Multi-Family Housing for
Newport-Oxford Project, RB (A)
4.100%, 06/02/97 ................... 1,300 1,300
Newport News, Public Improvements,
GO, Callable 01/15/07 @ 102
5.250%, 01/15/14 ................... 3,530 3,437
15
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (continued)
Face Market
Amount Value
(000) (000)
------ ------
Newport News, Refunding Bond, GO,
Callable 07/01/99 @ 101.50
5.700%, 07/01/05 ................... $2,000 $2,062
Newport News, School Improvements,
Ser A, GO, Prerefunded
11/01/00 @ 100.25
6.200%, 11/01/01 ................... 1,000 1,054
Norfolk, Industrial Development Authority,
Children's Hospital Project, RB, AMBAC
6.900%, 06/01/06 ................... 1,000 1,132
Norfolk, Industrial Development Authority,
Children's Hospital Project, RB,
Callable 06/01/04 @ 102, AMBAC
5.100%, 06/01/07 ................... 1,000 1,000
Norfolk, Industrial Development Authority,
Sentara Hospital Project, Ser A, RB,
Callable 11/01/04 @ 102
4.800%, 11/01/06 ................... 1,000 976
4.900%, 11/01/07 ................... 2,500 2,434
5.000%, 11/01/08 ................... 2,500 2,431
Norfolk, Redevelopment & Housing
Authority, Tidewater Community College
Project, RB, Callable 11/01/05 @ 102
5.800%, 11/01/08 ................... 700 739
Norfolk, Refunding Bond, Ser A, GO
5.100%, 02/01/00 ................... 4,000 4,060
Peninsula Ports, Hospital Authority,
Mary Immaculate Project, RB
8.000%, 08/01/99 ................... 765 798
Peninsula Ports, Industrial Development
Authority, Olde Hampton Hotel Project,
RB, Callable 07/01/97 @ 101
4.875%, 07/01/16 ................... 500 502
Petersburg, Hospital Authority,
Southside Regional Medical
Center Project, RB
5.600%, 07/01/00 ................... 1,600 1,646
Peumansend Creek, Regional Jail Authority,
GAN, RB, Callable 04/01/99 @ 100
4.550%, 04/01/00 ................... 5,000 5,000
Portsmouth, Public Improvements, GO,
Prerefunded 08/01/00 @ 102
6.750%, 08/01/04 ................... 1,500 1,626
Portsmouth, Refunding Bond, GO,
Callable 08/01/03 @ 102
5.450%, 08/01/07 ................... 2,000 2,052
Prince William County, Park Authority, RB
5.500%, 10/15/99 ................... 500 502
5.800%, 10/15/01 ................... 500 506
Prince William County, Park Authority, RB,
Callable 10/15/04 @ 102
6.200%, 10/15/05 ................... 500 512
Prince William County, Refunding Bond,
Ser A, GO
5.600%, 12/01/00 ................... 1,000 1,037
Prince William County, Refunding Bond,
Ser C, GO, Callable 08/01/03 @ 102
5.000%, 08/01/07 ................... 5,000 4,950
Face Market
Amount Value
(000) (000)
------ ------
Prince William County, Water & Sewer
Authority, RB, FGIC
6.000%, 07/01/00 ................... $1,000 $1,042
Prince William County, Water & Sewer
Authority, RB, Prerefunded
07/01/01 @ 102 FGIC
6.500%, 07/01/21 ................... 1,000 1,087
Richmond, Metropolitan Expressway
Authority, Ser A, RB,
Callable 07/15/02 @ 102 FGIC
5.900%, 07/15/03 ................... 1,500 1,596
Richmond, Public Improvements,
Ser A, GO, Callable 01/15/05 @ 102
6.000%, 01/15/00 ................... 2,000 2,072
Richmond, Public Improvements,
Ser A, GO
6.100%, 01/15/01 ................... 2,750 2,881
Richmond, Public Improvements,
Ser A, GO, Callable 01/15/05 @ 102
5.300%, 01/15/09 ................... 1,500 1,511
Richmond, Public Utility Authority,
Ser A, RB, Callable 01/15/98 @ 102
7.100%, 01/15/00 ................... 1,000 1,035
Richmond, Redevelopment & Housing
Authority, RB, AMT (A)
4.500%, 06/26/97 ................... 1,500 1,500
Roanoke Valley, Waste Authority, RB
5.400%, 09/01/02 ................... 1,450 1,464
Roanoke, Industrial Development
Authority, Roanoke Memorial
Hospital Project, RB
6.900%, 07/01/99 ................... 1,000 1,046
Roanoke, Industrial Development
Authority, Roanoke Memorial
Hospital Project, Ser B, RB,
Callable 07/01/02 @ 102
5.800%, 07/01/05 ................... 500 517
5.900%, 07/01/06 ................... 2,500 2,609
Roanoke, Public Improvements, GO,
Callable 02/01/06 @ 102
5.000%, 02/01/12 ................... 3,165 3,011
Roanoke, Public Improvements,
Ser B, GO
5.800%, 08/01/00 ................... 1,000 1,040
Roanoke, Public Improvements, GO,
Callable 07/17/97 @ 100.25
6.625%, 08/01/97 ................... 1,000 1,004
6.700%, 08/01/98 ................... 1,000 1,006
Roanoke, Public Improvements, GO
4.900%, 02/01/06 ................... 1,000 1,000
Spotsylvania County, School Improvements,
GO, Callable 07/15/02 @ 102
5.300%, 07/15/03 ................... 1,500 1,530
Stafford County, Water
Authority, RB, FGIC
4.750%, 06/01/03 ................... 1,000 1,001
Suffolk, Refunding &
Improvement Bond, GO
5.200%, 08/01/02 ................... 1,500 1,532
16
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (continued)
Face Market
Amount Value
(000) (000)
------ ------
Suffolk, Refunding Bond, GO,
Callable 08/01/03 @ 102
5.100%, 08/01/00 ................... $1,000 $1,017
5.600%, 08/01/06 ................... 2,000 2,065
5.700%, 08/01/07 ................... 2,000 2,072
University of Virginia, Ser A, RB,
Callable 06/01/03 @ 102
5.200%, 06/01/12 ................... 1,500 1,459
University of Virginia, Hospital Authority,
Ser E, RB, Callable 06/01/99 @ 100
6.000%, 06/01/13 ................... 1,000 1,010
University of Virginia, Hospital Authority,
Ser E, RB, Callable 06/01/99 @ 102
6.750%, 06/01/01 ................... 2,500 2,644
6.900%, 06/01/04 ................... 2,000 2,115
Upper Occoquan, Sewer Authority,
RB, Ser A, Callable
07/01/06 @ 102 MBIA
5.000%, 07/01/15 ................... 2,500 2,350
Virginia Beach, Development Authority,
Sentara Bayside Hospital Project,
RB, Callable 11/01/01 @ 102
6.300%, 11/01/21 ................... 1,750 1,811
Virginia Beach, Highway Improvements,
Ser A, GO, Callable 03/01/01 @ 102
6.400%, 03/01/03 ................... 1,000 1,066
Virginia Beach, Judicial Center Project,
Prerefunded 09/01/00 @ 102, COP, FGIC
7.000%, 09/01/01 ................... 1,500 1,641
Virginia Beach, Public Improvements,
GO, Callable 05/01/97 @ 102
6.900%, 05/01/98 ................... 1,000 1,026
Virginia Beach, Public Improvements,
Ser A, GO, Prerefunded 06/01/00 @ 102
6.850%, 06/01/03 ................... 2,000 2,170
Virginia Beach, Public Improvements,
Ser A, GO, Prerefunded 10/01/99 @ 102
6.900%, 10/01/03 ................... 1,000 1,074
Virginia Beach, Public Improvements,
Ser C, GO
6.100%, 08/01/00 ................... 1,000 1,051
6.100%, 08/01/01 ................... 1,000 1,060
Virginia Beach, Refunding Bond,
GO, Callable 11/01/04 @ 102
5.750%, 11/01/10 ................... 3,500 3,614
Virginia Beach, Refunding Bond, GO
5.000%, 07/15/03 ................... 1,000 1,017
5.300%, 07/15/07 ................... 2,000 2,052
5.450%, 07/15/11 ................... 1,000 1,014
Virginia State College Building Authority,
University of Richmond Project, RB,
Callable 11/01/02 @ 102
6.250%, 11/01/12 ................... 2,000 2,078
Virginia State College Building Authority,
University of Richmond Project,
RB, Callable 11/01/04 @ 100
5.550%, 11/01/19 ................... 4,000 4,160
Face Market
Amount Value
(000) (000)
------ ------
Virginia State College Building Authority,
University of Richmond Project, RB,
Callable 11/01/99 @ 101
6.400%, 11/01/22 ................... $1,000 $1,048
Virginia State Education
Loan Authority, Ser B, RB, ETM
4.850%, 09/01/01 ................... 520 525
Virginia State Education
Loan Authority, Ser F, RB, ETM
5.250%, 03/01/00 ................... 560 573
Virginia State Education
Loan Authority, RB, AMT
5.600%, 03/01/03 ................... 2,500 2,594
Virginia State Education
Loan Authority, RB,
Callable 09/01/05 @ 100
5.550%, 09/01/10 ................... 1,800 1,841
Virginia State Housing Development
Authority, Ser B, RB,
Callable 01/01/00 @ 102
7.375%, 05/01/05 ................... 1,000 1,036
Virginia State Housing Development
Authority, Ser C, RB,
Callable 01/01/04 @ 102
5.700%, 05/01/05 ................... 1,000 1,029
Virginia State Housing Development
Authority, Ser C-4, RB, Callable
01/01/02 @ 102
4.900%, 01/01/04 ................... 1,000 990
Virginia State Housing Development
Authority, Ser B, RB,
Callable 01/01/06 @ 102
6.350%, 01/01/15 ................... 3,000 3,090
Virginia State Housing Development
Authority, Ser C, RB,
Callable 07/01/02 @ 102
6.000%, 07/01/06 ................... 2,000 2,033
Virginia State Housing Development
Authority, Ser C, RB,
Callable 11/01/03 @ 102
5.600%, 11/01/07 ................... 1,000 1,004
Virginia State Housing Development
Authority, Ser C, RB,
Callable 01/01/02 @ 102
5.550%, 01/01/11 ................... 3,000 2,974
Virginia State Public Building
Authority, Ser A, RB
6.000%, 08/01/06 ................... 6,000 6,420
Virginia State Public Building
Authority, Ser B, RB
5.600%, 08/01/01 ................... 4,000 4,145
Virginia State Public School
Authority, Ser B, RB,
Callable 01/01/03 @ 102
5.600%, 01/01/05 ................... 1,880 1,972
Virginia State Public School Authority,
Ser C, RB, Callable 01/01/04 @ 102
4.875%, 01/01/09 ................... 1,000 965
17
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
Virginia State Public School
Authority, Ser C, RB
4.500%, 01/01/00 .................... $1,000 $ 1,001
Virginia State Public School Authority,
RB, Callable 01/01/02 @ 102
6.250%, 01/01/08 .................... 2,000 2,128
Virginia State Public School Authority, RB
5.000%, 01/01/04 .................... 2,000 2,013
Virginia State Public School Authority,
Ser B, RB, Callable 01/01/00 @ 102
5.850%, 01/01/02 .................... 1,500 1,564
Virginia State Refunding Bond, GO
5.600%, 06/01/02 .................... 4,750 4,964
Virginia State Transportation Board
U.S. Route 58 Corridor Project,
RB, Callable 05/15/98 @ 102
6.500%, 05/15/99 .................... 2,000 2,076
6.000%, 05/15/19 .................... 1,000 1,013
Virginia State University &
Polytechnic Institute, Ser A, RB,
Callable 06/01/06 @ 102
5.350%, 06/01/09 .................... 2,000 2,006
Virginia State University Medical
College Project, Ser D, RB
3.900%, 07/01/99 .................... 2,000 1,980
4.250%, 07/01/01 .................... 2,000 1,963
Virginia State University, Ser A, RB,
Callable 05/01/06 @ 102
5.625%, 05/01/16 .................... 2,500 2,491
Winchester, Public Improvements, GO
6.050%, 03/01/00 .................... 500 521
6.150%, 03/01/01 .................... 500 528
Winchester, Refunding Bond, GO,
Callable 01/15/04 @ 102
5.400%, 01/15/08 .................... 1,000 1,015
- ------------------------------------------------------------
240,217
- ------------------------------------------------------------
Total Municipal Bonds
(Cost $235,805) ................. 240,217
- ------------------------------------------------------------
CASH EQUIVALENT (0.3%)
Federated Virginia Municipal
Cash Trust ........................... 734 734
- ------------------------------------------------------------
Total Cash Equivalent
(Cost $734) ..................... 734
- ------------------------------------------------------------
Total Investments (98.9%)
(Cost $236,539) ................. 240,951
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (1.1%) 2,651
- ------------------------------------------------------------
Market
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class ($.001
par value -- .75 billion shares
authorized) based on 23,336,616
outstanding shares ......................... $231,544
Portfolio Shares of Investor Class A
($.001 par value -- .25 billion shares
authorized) based on 766,083
outstanding shares ......................... 7,867
Undistributed net investment income .......... 9
Accumulated net realized loss
on investments ............................. (230)
Net unrealized appreciation
on investments ............................. 4,412
- ------------------------------------------------------------
Total Net Assets: (100.0%) .............. $243,602
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(235,861,955 / 23,336,616
SHARES OUTSTANDING) .......................... $10.11
- ------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
(7,739,877 / 766,083
SHARES OUTSTANDING) .......................... $10.10
- ------------------------------------------------------------
OFFER PRICE PER SHARE -- INVESTOR CLASS A
($10.10 / 96.5%) ............................. $10.47
============================================================
(A) Floating Rate Security--the rate reflected on the Statement
of Net Assets is the rate in effect on May 31, 1997. 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.
AMT--Alternative Minimum Tax
AMBAC--American Municipal Bond Assurance Corporation
COP--Certificate of Participation
ETM--Escrowed to Maturity
FGIC--Financial Guaranty Insurance Company
GAN--Grant Anticipation Note
GO--General Obligation
MBIA--Municipal Bond Investors Assurance
RB--Revenue Bond
Ser--Series
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (94.7%)
VIRGINIA
Albemarle County, Industrial Development
Authority, Hospital Revenue, RB,
Callable 10/01/03 @ 102
5.800%, 10/01/09 ..................... $500 $ 504
Alexandria, Industrial Development
Authority, Episcopal High School Project,
RB, Callable 01/01/06 @ 102
5.300%, 01/01/11 ..................... 500 494
Alexandria, Industrial Development
Authority, Potomac Electric Project, RB,
Callable 02/15/04 @ 102, MBIA
5.375%, 02/15/24 ..................... 400 381
Alexandria, Redevelopment & Housing
Authority, Buckingham Village Apartments
Project, RB, Callable 01/01/06 @ 102
6.050%, 07/01/16 ..................... 250 251
Arlington County, Public Improvements,
GO, Callable 06/01/05 @ 101.50
5.400%, 06/01/12 ..................... 250 251
Big Stone Gap, Wallens Ridge Development
Project, RB, Callable 09/01/05 @ 102
5.500%, 09/01/15 ..................... 250 242
Capital Region Airport Community,
Richmond International Airport Project,
Ser A, RB, AMBAC
5.625%, 07/01/15 ..................... 500 499
Chesapeake, Refunding Bond, GO
5.250%, 12/01/06 ..................... 500 510
Chesterfield County, Refunding Bond, GO
5.250%, 03/01/08 ..................... 500 508
Fairfax County, Industrial
Development Authority,
Inova Health System Project, RB, FSA
5.250%, 08/15/19 ..................... 500 478
Fairfax County, Redevelopment &
Housing Authority, Paul Spring
Center Project, RB,
Ser A, Callable 06/15/06 @ 103
5.900%, 06/15/17 ..................... 250 251
Fairfax County, Water Authority,
RB, Callable 04/01/07 @ 102
6.000%, 04/01/22 ..................... 500 510
Fairfax, Redevelopment & Housing
Authority, RB, Callable 06/01/06 @ 102
5.500%, 06/01/12 ..................... 425 422
Fairfax, School & Public Improvements,
GO, Callable 06/01/03 @ 102
5.000%, 06/01/07 ..................... 500 502
Frederick-Winchester, Service Authority,
Regional Sewer System Project, RB,
Callable 10/01/03 @ 102, AMBAC
5.750%, 10/01/10 ..................... 150 153
Face Market
Amount Value
(000) (000)
------ ------
Fredericksburg, Industrial Development
Authority, Hospital Facilities Project, RB,
Callable 06/15/07 @ 102, AMBAC
5.300%, 06/15/10 ..................... $500 $ 498
Hampton Roads, Sanitation District, RB,
Callable 10/01/03 @ 102
5.100%, 10/01/08 ..................... 335 333
Henrico County, Public Improvements,
GO, Callable 01/15/03 @ 102
5.200%, 01/15/07 ..................... 250 254
Henry County, Industrial Development
Authority, Martinsville & Henry Hospital
Project, RB, Callable 01/01/07 @ 101
6.000%, 01/01/17 ..................... 500 507
James City County, Public Improvements,
GO, Callable 12/15/05 @ 102, FGIC
5.250%, 12/15/14 ..................... 250 243
Leesburg, Public Improvements, GO,
Callable 06/01/05 @ 102, AMBAC
5.400%, 06/01/10 ..................... 250 252
Loudoun County, School Improvements, GO,
Callable 06/01/06 @ 102
5.600%, 06/01/10 ..................... 250 256
Lynchburg, Public Improvements, GO,
Callable 05/01/06 @ 102
5.100%, 05/01/11 ..................... 500 488
Norfolk, Public & Sewer Improvements,
GO, Callable 06/01/06 @ 101
5.250%, 06/01/09 ..................... 500 503
Northern Virginia Transportation District,
Virginia Railway Express Project, RB,
Callable 07/01/00 @ 100, FSA
6.000%, 07/01/14 ..................... 250 254
Portsmouth, Public Improvements, GO,
Callable 08/01/06 @ 101, FGIC
5.250%, 08/01/21 ..................... 500 474
Portsmouth, Public Improvements, GO,
Prerefunded 08/01/00 @ 102
6.750%, 08/01/04 ..................... 250 271
Richmond, Metropolitan
Expressway Authority, Ser A, RB,
Callable 07/15/02 @ 100, FGIC
5.750%, 07/15/22 ..................... 250 250
Richmond, Redevelopment &
Housing Authority, RB, AMT (A)
4.500%, 06/26/97 ..................... 500 500
Richmond, Refunding Bond, Ser B,
GO, Callable 01/15/06 @ 102, FGIC
5.000%, 01/15/21 ..................... 250 228
Riverside, Regional Jail Authority,
RB, Callable 07/01/05 @ 102, MBIA
6.000%, 07/01/25 ..................... 250 256
Roanoke, Public Improvements Project,
GO, Callable 08/01/04 @ 102
5.150%, 08/01/12 ..................... 250 240
19
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
Spotsylvania County, Public Improvements,
GO, Callable 07/15/02 @ 102
5.875%, 07/15/10 .................... $ 150 $ 155
Stafford County, Water & Sewer System,
RB, Callable 06/01/03 @ 102, FGIC
5.250%, 06/01/12 .................... 250 245
Virginia Beach, Refunding Bond, GO
5.450%, 07/15/11 .................... 200 203
Virginia Polytechnic Institute & State
University, RB, Callable 06/01/06 @ 102
5.500%, 06/01/16 .................... 200 196
Virginia Public School Authority,
Ser B, RB, Prerefunded 01/01/99 @102
6.500%, 01/01/03 .................... 400 422
Virginia State Housing Development
Authority, Commonwealth Meeting
Project, Ser A-4, AMT, RB,
Callable 01/01/06 @ 102, MBIA
6.350%, 07/01/18 .................... 150 153
Virginia State Housing Development
Authority, Commonwealth
Mortgage Project, RB, Ser A,
Callable 07/01/03 @ 102
6.400%, 07/01/17 .................... 1,000 1,030
Virginia State Park Authority,
Biotechnology Research Project,
RB, Callable 09/01/06 @ 101
5.250%, 09/01/18 .................... 500 478
Virginia State Public Building Authority,
RB, Callable 08/01/05 @ 101
5.200%, 08/01/16 .................... 300 287
Virginia State Transportation Board,
U.S. Route 58 Corridor Project,
RB, Callable 05/15/98 @ 102
6.000%, 05/15/19 .................... 250 253
Virginia State University, Ser A, RB,
Callable 05/01/06 @ 102
5.625%, 05/01/16 .................... 1,000 996
West Point, Industrial Development
Authority, Chesapeake Corporation
Project, Ser B, RB,
Callable 03/01/04 @ 102
6.250%, 03/01/19 .................... 150 154
- ------------------------------------------------------------
16,335
- ------------------------------------------------------------
Total Municipal Bonds
(Cost $16,309) .................. 16,335
- ------------------------------------------------------------
CASH EQUIVALENT (3.9%)
Federated Virginia Municipal Cash Trust 671 671
- ------------------------------------------------------------
Total Cash Equivalent
(Cost $671) ..................... 671
- ------------------------------------------------------------
Total Investments (98.6%)
(Cost $16,980) .................. 17,006
- ------------------------------------------------------------
Market
Value
(000)
------
OTHER ASSETS AND LIABILITIES, NET (1.4%) $ 250
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class ($.001 par
value -- .75 billion shares
authorized) based on 1,600,351
outstanding shares ................... 16,157
Portfolio Shares of Investor Class B ($.001
par value -- .125 billion shares
authorized) based on 105,016
outstanding shares ................... 1,058
Accumulated net realized gain
on investments ....................... 15
Net unrealized appreciation
on investments ....................... 26
- ------------------------------------------------------------
Total Net Assets: (100.0%) ........ $17,256
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(16,190,122 / 1,600,351
SHARES OUTSTANDING) .................... $10.12
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B (1)
(1,065,799 / 105,016
SHARES OUTSTANDING) .................... $10.15
============================================================
(A) Floating Rate Security--the rate reflected on the Statement
of Net Assets is the rate in effect on May 31, 1997. 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.
(1) Investors Class B has a contingent deferred sales charge. For description
of a possible redemption charge, see the notes to the financial statements.
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax
FGIC--Financial 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.
20
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
MARYLAND MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (94.1%)
DELAWARE (2.4%)
Wilmington, Delaware MN (A)
3.950%, 06/05/97 ................... $200 $200
- ------------------------------------------------------------
MARYLAND (89.4%)
Anne Arundel County, Public Improvements,
GO, Callable 02/01/04 @ 101.50
4.600%, 02/01/06 ................... 250 243
Baltimore County, Metropolitan
District Water Utility Improvements,
Ser 64, GO, Callable 08/01/03 @ 102
5.000%, 08/01/13 ................... 100 96
Baltimore County, Parking Authority,
RB, Prerefunded 07/01/99 @ 102
7.200%, 07/01/19 ................... 200 215
Baltimore, Construction &
Public Improvements, GO,
Callable 06/01/06 @ 101
5.500%, 06/01/16 ................... 250 248
Baltimore, Parking Authority
Refunding Bond, RB, FGIC
4.350%, 07/01/02 ................... 200 197
Baltimore, Pollution Control
General Motors Corporate Project, RB
5.350%, 04/01/08 ................... 250 253
Calvert County, Pollution Control
Baltimore Gas & Electric Company
Project, RB, Callable 07/15/04 @ 102
5.550%, 07/15/14 ................... 250 248
Carroll County, Public Improvements,
GO, Callable 12/01/06 @ 101
5.125%, 12/01/14 ................... 500 483
Harford County, Refunding Bond,
GO, Callable 12/01/03 @ 102
4.900%, 12/01/12 ................... 100 95
Howard County, Public Improvements,
Ser A, GO, Callable 02/15/05 @ 101
5.650%, 02/15/16 ................... 100 101
Maryland State Community
Development Administration
Multi-Family Housing Project,
Ser B, RB, Callable 05/15/05 @ 102 (A)
5.650%, 05/15/15 ................... 115 112
Maryland State Facilities Improvement,
GO, Callable 10/15/05 @ 100
5.000%, 10/15/06 ................... 250 252
Maryland State Health & Higher
Education Facilities Authority,
Pickersgill Project, Ser A, RB,
Callable 01/01/07 @ 102
6.000%, 01/01/15 ................... 350 354
Maryland State Health & Higher
Educational Facilities Authority,
Good Samaritan Hospital Project,
RB, Callable 07/01/03 @ 102
5.750%, 07/01/19 ................... 100 99
Face Market
Amount Value
(000) (000)
------ ------
Maryland State Health & Higher
Educational Facilities Authority, RB,
Callable 10/01/06 @ 102, MBIA
5.500%, 10/01/16 ................... $250 $249
Maryland State Health & Higher
Educational Facilities Authority,
University of Maryland Medical
Systems Project, Ser A,
Prerefunded 07/01/01 @ 100, FGIC
6.500%, 07/01/21 ................... 200 215
Maryland State Industrial Development
Authority, Holy Cross Health System,
RB, Callable 12/01/03 @ 102
5.500%, 12/01/15 ................... 100 97
Maryland State National Park &
Planning Authority, Prince Georges
Project, GO, Prerefunded 07/01/00 @102
6.900%, 07/01/02 ................... 100 109
Maryland State Public Improvements,
Ser 1, GO, Callable 02/15/06 @ 101.50
4.700%, 02/15/10 ................... 300 283
Maryland State Stadium Authority,
Sports Facility, RB,
Callable 03/01/06 @ 101, AMBAC
5.800%, 03/01/26 ................... 250 250
Maryland State Transportation
Authority, RB, ETM
6.800%, 07/01/16 ................... 120 136
Montgomery County, Community
Housing Authority Multi-Family
Housing Project, Ser A, RB,
Callable 07/01/05 @ 102 (A)
6.000%, 07/01/20 ................... 100 101
Montgomery County, Human Services
Headquarters Project, RB
5.400%, 08/01/06 ................... 200 206
Montgomery County, Pollution Control
Potomac Electric Power Company
Project, RB, Callable 02/15/04 @ 102
5.375%, 02/15/24 ................... 100 95
Montgomery County, Refunding Bond,
Ser A, GO
5.800%, 07/01/07 ................... 500 529
Northeast Maryland Waste Disposal
Authority Montgomery County Project,
RB, Callable 07/01/03 @ 102
6.200%, 07/01/10 ................... 275 281
Ocean City, MD Refunding Bond,
GO, MBIA
4.500%, 10/15/05 ................... 100 97
Prince Georges County, Dimensions
Health Project, RB,
Callable 07/01/04 @ 102
5.375%, 07/01/14 ................... 250 238
5.300%, 07/01/24 ................... 250 229
21
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
MARYLAND MUNICIPAL BONDFUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
Prince Georges County,
Public Improvements, GO,
Callable 09/01/02 @ 102
5.625%, 09/01/04 ................... $250 $ 263
Prince Georges County,
Water Utility Improvements Stormwater
Management Project, GO,
Callable 03/15/03 @ 102
5.500%, 03/15/13 ................... 100 99
Queen Annes County,
School Improvements, GO
5.125%, 11/15/06 ................... 350 357
Saint Mary's County, GO,
Callable 11/01/03 @ 102, AMBAC
5.500%, 11/01/07 ................... 150 155
University of Maryland, Auxiliary
Facilities Project, Ser A, RB,
Callable 04/01/05 @ 102
5.400%, 04/01/09 ................... 100 101
University of Maryland, Auxiliary
Faculty & Tuition Project, RB,
Callable 04/01/06 @ 101
5.500%, 04/01/08 ................... 100 103
Washington County, Refunding Bond,
GO, Callable 01/01/03 @ 102, FGIC
5.250%, 01/01/07 ................... 100 102
Washington County, Suburban Sanitation
District, GO, Callable 06/01/06 @ 100
5.600%, 06/01/19 ................... 250 250
Worcester County, Refunding Bond, GO,
Callable 08/01/06 @ 101, MBIA
5.500%, 08/01/12 ................... 100 101
- ------------------------------------------------------------
7,642
- ------------------------------------------------------------
VIRGINIA (2.3%)
Commonwealth of Virginia MN (A)
3.950%, 06/05/97 ................... 200 200
- ------------------------------------------------------------
Total Municipal Bonds
(Cost $8,063) .................. 8,042
- ------------------------------------------------------------
CASH EQUIVALENTS (4.4%)
Aim Tax Free Institutional Cash Reserve 75 75
Federated Maryland Municipal Cash Trust 306 306
- ------------------------------------------------------------
Total Cash Equivalents
(Cost $381) .................... 381
- ------------------------------------------------------------
Total Investments (98.5%)
(Cost $8,444) .................. 8,423
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (1.5%) 126
- ------------------------------------------------------------
Market
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .9 billion shares
authorized) based on 863,847
outstanding shares .................. $8,371
Portfolio Shares of Investor Class B
($.001 par value -- 50 million shares
authorized) based on 24,105
outstanding shares .................. 230
Accumulated net realized loss
on investments ...................... (31)
Net unrealized depreciation
on investments ...................... (21)
- ------------------------------------------------------------
Total Net Assets: (100.0%) ....... $8,549
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(8,316,612 / 863,847
SHARES OUTSTANDING) ................... $9.63
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B (1)
(232,343 / 24,105
SHARES OUTSTANDING) ................... $9.64
============================================================
(A) Floating Rate Security--the rate reflected on the Statement
of Net Assets is the rate in effect on May 31, 1997. 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.
(1) Investors Class B has a contingent deferred sales charge. For description
of a possible redemption charge, see the notes to the financial statements.
AMBAC--American Municipal Bond Assurance Corporation
ETM--Escrowed to Maturity
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.
22
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
VALUE FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (90.1%)
AIR TRANSPORTATION (1.0%)
AMR* ................................. 55,000 $ 5,466
- ------------------------------------------------------------
AUTOMOTIVE (1.8%)
General Motors ....................... 175,000 10,019
- ------------------------------------------------------------
BANKS (3.7%)
BankAmerica .......................... 50,000 5,844
BankBoston ........................... 100,000 7,300
H.F. Ahmanson ........................ 200,000 8,150
- ------------------------------------------------------------
21,294
- ------------------------------------------------------------
CHEMICALS (1.3%)
Dow Chemical ......................... 86,000 7,170
- ------------------------------------------------------------
COMPUTERS & SERVICES (8.3%)
Cabletron Systems* ................... 257,700 11,339
Gateway 2000* ........................ 85,000 5,642
Intel ................................ 37,500 5,677
Storage Technology* .................. 300,000 12,225
Tandem Computers* .................... 900,000 12,825
- ------------------------------------------------------------
47,708
- ------------------------------------------------------------
DIVERSIFIED (1.5%)
Loews ................................ 90,000 8,752
- ------------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (3.4%)
General Electric ..................... 125,000 7,547
Textron .............................. 100,000 11,850
- ------------------------------------------------------------
19,397
- ------------------------------------------------------------
ENERGY SERVICES (1.8%)
Dresser Industries ................... 300,000 10,275
- ------------------------------------------------------------
FINANCIAL SERVICES (4.5%)
FNMA ................................. 220,000 9,597
Morgan Stanley Group ................. 110,000 7,425
Travelers ............................ 155,000 8,506
- ------------------------------------------------------------
25,528
- ------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (9.6%)
Archer Daniels Midland ............... 390,000 7,800
Coca Cola ............................ 80,000 5,460
Hershey Foods ........................ 175,000 9,822
Philip Morris ........................ 215,000 9,460
Quaker Oats .......................... 325,000 13,406
Sara Lee ............................. 225,000 9,197
- ------------------------------------------------------------
55,145
- ------------------------------------------------------------
Market
Value
Shares (000)
------ ------
HEALTHCARE SERVICES (1.3%)
Aetna ................................ 75,000 $ 7,575
- ------------------------------------------------------------
INSURANCE (4.1%)
American International Group ......... 25,000 3,384
Cigna ................................ 65,000 11,294
General RE ........................... 50,000 8,762
- ------------------------------------------------------------
23,440
- ------------------------------------------------------------
MACHINERY (4.6%)
Case ................................. 125,000 7,375
Caterpillar .......................... 100,000 9,762
Ingersoll-Rand ....................... 173,000 9,428
- ------------------------------------------------------------
26,565
- ------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (9.4%)
Amgen* ............................... 135,000 9,028
Bristol-Myers Squibb ................. 75,000 5,503
Pfizer ............................... 90,000 9,259
Schering Plough ...................... 115,000 10,436
Tenet Healthcare* .................... 350,000 9,625
United States Surgical ............... 300,000 10,125
- ------------------------------------------------------------
53,976
- ------------------------------------------------------------
METALS & MINING (1.7%)
Alumax* .............................. 250,000 9,656
- ------------------------------------------------------------
PAPER & PAPER PRODUCTS (2.0%)
Fort Howard* ......................... 250,000 11,469
- ------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (7.4%)
Exxon ................................ 175,000 10,369
Mobil ................................ 78,000 10,910
Phillips Petroleum ................... 200,000 8,500
Unocal ............................... 300,000 12,787
- ------------------------------------------------------------
42,566
- ------------------------------------------------------------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES (1.5%)
Eastman Kodak ........................ 100,000 8,288
- ------------------------------------------------------------
RAILROADS (0.9%)
Canadian Pacific Limited ............. 200,000 5,300
- ------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST (1.5%)
Hospitality Properties Trust ......... 275,000 8,731
- ------------------------------------------------------------
RECREATIONAL PRODUCTS & SERVICES (1.7%)
Carnival Cruise Lines, Cl A .......... 250,000 9,500
- ------------------------------------------------------------
RESTAURANTS (1.4%)
Wendy's International ................ 350,000 8,181
- ------------------------------------------------------------
23
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
VALUE FUND (concluded)
Shares/
Face Market
Amount Value
(000) (000)
------ ------
RETAIL (4.9%)
Federated Department Stores* ......... 285,000 $ 10,545
Kroger* .............................. 325,000 8,328
Toys R Us* ........................... 300,000 9,338
- ------------------------------------------------------------
28,211
- ------------------------------------------------------------
STEEL & STEEL WORKS (2.3%)
AK Steel Holding ..................... 75,000 2,916
Nucor ................................ 175,000 10,325
- ------------------------------------------------------------
13,241
- ------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (3.2%)
Ameritech ............................ 100,000 6,550
AT&T ................................. 320,000 11,800
- ------------------------------------------------------------
18,350
- ------------------------------------------------------------
UTILITIES, ELECTRIC, & GAS (5.3%)
CMS Energy ........................... 270,000 9,079
Southern ............................. 400,000 8,500
Texas Utilities ...................... 375,000 12,891
- ------------------------------------------------------------
30,470
- ------------------------------------------------------------
Total Common Stocks
(Cost $415,704) ............... 516,273
- ------------------------------------------------------------
CASH EQUIVALENT (4.2%)
Aim Liquid Assets Portfolio .......... $23,870 23,870
- ------------------------------------------------------------
Total Cash Equivalent
(Cost $23,870) ................ 23,870
- ------------------------------------------------------------
REPURCHASE AGREEMENT (5.4%)
J.P. Morgan
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $30,850,170
(collateralized by various GNMA obligations
total par value $33,027,394,
7.500%-8.000%, 07/15/22-05/15/27;
total market value: $31,452,627) .... 30,836 30,836
- ------------------------------------------------------------
Total Repurchase Agreement
(Cost $30,836) ................. 30,836
- ------------------------------------------------------------
Total Investments (99.7%)
(Cost $470,410) ................ 570,979
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.3%) 1,966
- ------------------------------------------------------------
Market
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class ($.001
par value -- 1.0 billion shares
authorized) based on 36,884,869
outstanding shares ..................... $397,168
Portfolio Shares of Investor Class A
($.001 par value -- .25 billion shares
authorized) based on 1,469,485
outstanding shares ..................... 17,141
Portfolio Shares of Investor Class B
($.001 par value -- .25 billion shares
authorized) based on 501,341
outstanding shares ..................... 6,295
Undistributed net investment income ...... 140
Accumulated net realized gain
on investments ......................... 51,632
Net unrealized appreciation
on investments ......................... 100,569
- ------------------------------------------------------------
Total Net Assets: (100.0%) .......... $572,945
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(543,741,170 / 36,884,869
SHARES OUTSTANDING) ...................... $14.74
- ------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
( 21,787,497 / 1,469,485
SHARES OUTSTANDING) ...................... $14.83
- ------------------------------------------------------------
OFFER PRICE PER SHARE -- INVESTOR CLASS A
($14.83 / 95.5%) ......................... $15.53
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B (1)
(7,416,734 / 501,341
SHARES OUTSTANDING) ...................... $14.79
============================================================
* Non-income producing security.
Cl--Class
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
(1) Investors Class B has a contingent deferred sales charge. For description of
a possible redemption charge, see the notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (90.7%)
AIRCRAFT (1.6%)
Boeing ............................... 12,000 $ 1,263
- ------------------------------------------------------------
CHEMICALS (1.3%)
Praxair .............................. 20,000 1,052
- ------------------------------------------------------------
COMPUTERS & SERVICES (19.1%)
BMC Software* ........................ 40,000 2,160
Cabletron Systems* ................... 32,000 1,408
Cisco Systems* ....................... 20,000 1,350
Computer Associates International .... 36,000 1,971
Electronics for Imaging* ............. 16,000 636
Gateway 2000* ........................ 19,000 1,261
Hewlett Packard ...................... 30,000 1,545
Intel ................................ 12,000 1,816
Microsoft* ........................... 16,000 1,984
Storage Technology* .................. 30,000 1,222
- ------------------------------------------------------------
15,353
- ------------------------------------------------------------
CONSUMER SERVICES (1.5%)
Service International ................ 34,500 1,216
- ------------------------------------------------------------
COSMETICS, SOAPS & TOILETRIES (1.7%)
Procter & Gamble ..................... 10,000 1,379
- ------------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (2.3%)
General Electric ..................... 30,000 1,811
- ------------------------------------------------------------
FINANCIAL SERVICES (1.6%)
FNMA ................................. 30,000 1,309
- ------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (13.6%)
Campbell Soup ........................ 21,000 966
Coca Cola ............................ 30,000 2,047
Hershey Foods ........................ 22,000 1,235
Nabisco Holdings, Cl A ............... 39,000 1,545
Philip Morris ........................ 50,000 2,200
Quaker Oats .......................... 37,000 1,526
Sara Lee ............................. 34,000 1,390
- ------------------------------------------------------------
10,909
- ------------------------------------------------------------
HOTELS & LODGING (0.5%)
Hilton Hotels ........................ 15,000 424
- ------------------------------------------------------------
INSURANCE (3.9%)
AMBAC ................................ 12,000 900
American International Group ......... 10,000 1,354
Travelers ............................ 16,000 878
- ------------------------------------------------------------
3,132
- ------------------------------------------------------------
MACHINERY (1.9%)
Illinois Tool Works .................. 30,000 1,489
- ------------------------------------------------------------
MANUFACTURING (2.0%)
Tyco International ................... 25,000 1,587
- ------------------------------------------------------------
Shares/
Face Market
Amount Value
Shares (000)
------ ------
MEDICAL PRODUCTS & SERVICES (17.9%)
Abbott Laboratories .................. 25,000 $ 1,575
Amgen* ............................... 30,000 2,006
Guidant .............................. 20,000 1,553
Johnson & Johnson .................... 32,000 1,916
Merck ................................ 18,000 1,618
Pfizer ............................... 2,500 257
Schering Plough ...................... 20,000 1,815
United States Surgical ............... 50,000 1,688
Watson Pharmaceuticals* .............. 50,000 1,956
- ------------------------------------------------------------
14,384
- ------------------------------------------------------------
PAPER & PAPER PRODUCTS (1.1%)
Fort Howard* ......................... 20,000 918
- ------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (4.7%)
Reading & Bates* ..................... 35,000 888
Schlumberger ......................... 10,000 1,191
Tidewater ............................ 10,000 421
Unocal ............................... 30,000 1,279
- ------------------------------------------------------------
3,779
- ------------------------------------------------------------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES (0.5%)
Eastman Kodak ........................ 5,000 414
- ------------------------------------------------------------
PRINTING & PUBLISHING (1.5%)
Gannett .............................. 13,000 1,203
- ------------------------------------------------------------
PROFESSIONAL SERVICES (1.5%)
Apollo Group, Cl A* .................. 35,000 1,225
- ------------------------------------------------------------
RECREATIONAL PRODUCTS & SERVICES (1.2%)
Carnival Cruise Lines, Cl A .......... 25,000 950
- ------------------------------------------------------------
RETAIL (6.9%)
Home Depot ........................... 25,000 1,575
PepsiCo .............................. 50,000 1,838
TJX .................................. 25,000 1,200
Toys R Us* ........................... 13,000 405
Wendy's International ................ 21,000 491
- ------------------------------------------------------------
5,509
- ------------------------------------------------------------
STEEL & STEEL WORKS (1.8%)
Nucor ................................ 25,000 1,475
- ------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (2.6%)
Worldcom* ............................ 70,000 2,074
- ------------------------------------------------------------
Total Common Stocks
(Cost $60,810) ................ 72,855
- ------------------------------------------------------------
CASH EQUIVALENT (3.8%)
Aim Liquid Assets Portfolio .......... $3,034 3,034
- ------------------------------------------------------------
Total Cash Equivalent
(Cost $3,034) ................. 3,034
- ------------------------------------------------------------
25
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
REPURCHASE AGREEMENT (5.7%)
J.P. Morgan
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $4,566,754
(collateralized by GNMA obligation par
value $4,674,844, 6.000%, 08/20/26;
total market value: $4,655,936) .... $4,565 $ 4,565
- ------------------------------------------------------------
Total Repurchase Agreement
(Cost $4,565) ................. 4,565
- ------------------------------------------------------------
Total Investments (100.2%)
(Cost $68,409) ................ 80,454
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-0.2%) (117)
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .75 billion shares
authorized) based on 5,231,891
outstanding shares ................. 61,806
Portfolio Shares of Investor Class A
($.001 par value -- .25 billion shares
authorized) based on 430,964
outstanding shares ................. 4,764
Undistributed net investment income .. 3
Accumulated net realized gain
on investments ..................... 1,719
Net unrealized appreciation
on investments ..................... 12,045
- ------------------------------------------------------------
Total Net Assets: (100.0%) ...... $80,337
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(74,282,138 / 5,231,891
SHARES OUTSTANDING) .................. $14.20
- ------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
(6,054,946 / 430,964
SHARES OUTSTANDING) .................. $14.05
- ------------------------------------------------------------
OFFER PRICE PER SHARE -- INVESTOR CLASS A
($14.05 / 95.5%) ..................... $14.71
============================================================
* Non-income producing security.
Cl--Class
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
SPECIAL EQUITY FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (91.0%)
AEROSPACE & DEFENSE (3.0%)
Avondale Industries* ................. 62,000 $1,162
Tracor* .............................. 70,000 1,759
- ------------------------------------------------------------
2,921
- ------------------------------------------------------------
APPAREL/TEXTILES (1.4%)
Burlington Industries* ............... 128,000 1,408
- ------------------------------------------------------------
AUTOMOTIVE (2.1%)
Arvin Industries ..................... 73,500 2,040
- ------------------------------------------------------------
BANKS (1.6%)
Glendale Federal* .................... 32,500 829
SouthTrust ........................... 18,500 719
- ------------------------------------------------------------
1,548
- ------------------------------------------------------------
BUILDING & CONSTRUCTION SUPPLIES (0.8%)
Martin Marietta Materials ............ 27,000 776
- ------------------------------------------------------------
CHEMICALS (3.1%)
Aceto ................................ 28,500 378
Hanna ................................ 60,000 1,387
Wellman .............................. 72,000 1,287
- ------------------------------------------------------------
3,052
- ------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (5.2%)
Aspect Telecommunications* ........... 53,000 1,188
Boston Technology* ................... 59,000 1,696
Comverse Technology* ................. 48,200 2,193
- ------------------------------------------------------------
5,077
- ------------------------------------------------------------
COMPUTER SOFTWARE (4.4%)
Memco Software Limited* .............. 102,000 1,798
Pure Atria* .......................... 61,000 968
Rational Software* ................... 77,500 1,453
- ------------------------------------------------------------
4,219
- ------------------------------------------------------------
COMPUTERS & SERVICES (6.2%)
Etec Systems* ........................ 21,200 943
Hutchinson Technology* ............... 27,000 739
Splash Technologies Holdings* ........ 35,000 814
Storage Technology* .................. 43,000 1,752
Tech Data* ........................... 60,000 1,777
- ------------------------------------------------------------
6,025
- ------------------------------------------------------------
ELECTRICAL SERVICES (0.5%)
Public Service of New Mexico ......... 25,000 441
- ------------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (2.9%)
DII Group* ........................... 62,000 1,953
SCI Systems* ......................... 13,000 845
- ------------------------------------------------------------
2,798
- ------------------------------------------------------------
Market
Value
Shares (000)
------ ------
ENERGY SERVICES (1.8%)
AES* ................................. 24,000 $ 1,722
- ------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (2.4%)
Schweitzer-Manduit International ..... 67,000 2,303
- ------------------------------------------------------------
GAS/NATURAL GAS (1.3%)
Public Service of North Carolina ..... 30,000 566
USX-Delhi Group ...................... 50,000 681
- ------------------------------------------------------------
1,247
- ------------------------------------------------------------
HOTELS & LODGING (3.6%)
Doubletree* .......................... 32,000 1,432
Prime Hospitality* ................... 110,000 2,049
- ------------------------------------------------------------
3,481
- ------------------------------------------------------------
INSURANCE (11.1%)
American Bankers Insurance Group ..... 5,000 283
Amerin* .............................. 60,300 1,387
CMAC Investment ...................... 43,000 1,790
Fremont General ...................... 62,000 2,178
Life Re .............................. 35,000 1,505
NAC Re ............................... 57,000 2,273
Old Republic International ........... 45,000 1,356
- ------------------------------------------------------------
10,772
- ------------------------------------------------------------
LEASING & RENTING (1.7%)
Renters' Choice* ..................... 87,000 1,653
- ------------------------------------------------------------
MACHINERY (4.2%)
Agco ................................. 50,500 1,610
Titan International .................. 119,000 1,815
Trinity Industries ................... 21,000 630
- ------------------------------------------------------------
4,055
- ------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (12.9%)
Advanced Technologies Laboratories* .. 51,500 1,996
Beverly Enterprises* ................. 100,000 1,412
Hologic* ............................. 98,000 2,315
Respironics* ......................... 110,000 2,200
Vencor* .............................. 29,100 1,186
Watson Pharmaceuticals* .............. 48,500 1,898
Wellpoint Health Networks* ........... 31,000 1,480
- ------------------------------------------------------------
12,487
- ------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (4.9%)
Benton Oil & Gas* .................... 100,000 1,550
Cooper Cameron* ...................... 28,000 2,293
Global Marine * ...................... 40,000 900
- ------------------------------------------------------------
4,743
- ------------------------------------------------------------
27
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1997 Unaudited
- --------------------------------------------------------------------------------
SPECIAL EQUITY FUND (concluded)
Shares/
Face Market
Amount Value
(000) (000)
------ ------
PRINTING & PUBLISHING (0.6%)
Golden Books Family Entertainment* .... 50,000 $ 556
- ------------------------------------------------------------
PROFESSIONAL SERVICES (2.3%)
Accustaff* ............................ 49,000 1,176
Corestaff* ............................ 47,500 1,104
- ------------------------------------------------------------
2,280
- ------------------------------------------------------------
RECREATION (1.6%)
Callaway Golf ......................... 47,000 1,516
- ------------------------------------------------------------
RETAIL (7.0%)
Buckle* ............................... 98,000 2,082
Proffitts* ............................ 33,000 1,316
S & K Famous Brands* .................. 55,000 564
Stein Mart* ........................... 25,000 750
Zale* ................................. 101,000 2,033
- ------------------------------------------------------------
6,745
- ------------------------------------------------------------
STEEL & STEEL WORKS (2.9%)
AK Steel Holding ...................... 36,000 1,400
Schnitzer Steel Industries, Cl A ...... 55,000 1,375
- ------------------------------------------------------------
2,775
- ------------------------------------------------------------
TESTING LABORATORIES (0.0%)
Perseptive Biosystems Warrants (A)* ... 39 --
Perseptive Biosystems (A)* ............ 68 --
- ------------------------------------------------------------
--
- ------------------------------------------------------------
TRUCKING (1.5%)
Roadway Express ....................... 80,000 1,490
- ------------------------------------------------------------
Total Common Stocks
(Cost $73,976) ................. 88,130
- ------------------------------------------------------------
CASH EQUIVALENT (4.1%)
Aim Liquid Assets Portfolio ........... $3,967 3,967
- ------------------------------------------------------------
Total Cash Equivalent
(Cost $3,967) .................. 3,967
- ------------------------------------------------------------
REPURCHASE AGREEMENT (5.2%)
J.P. Morgan
5.550%, dated 05/30/97, matures
06/02/97, repurchase price $5,078,569
(collateralized by GNMA obligation par
value $5,198,773, 6.000%, 08/20/26;
total market value: $5,177,746) ..... 5,076 5,076
- ------------------------------------------------------------
Total Repurchase Agreement
(Cost $5,076) .................. 5,076
- ------------------------------------------------------------
Total Investments (100.3%)
(Cost $83,019) ................. 97,173
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.3%) (675)
- ------------------------------------------------------------
Market
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .75 billion shares
authorized) based on 6,299,466
outstanding shares ........................ $71,955
Portfolio Shares of Investor Class A
($.001 par value -- .125 billion shares
authorized) based on 336,252
outstanding shares ........................ 3,836
Portfolio Shares of Investor Class B
($.001 par value -- .125 billion shares
authorized) based on 71,994
outstanding shares ........................ 870
Undistributed net investment loss ........... (46)
Accumulated net realized gain
on investments ............................ 5,729
Net unrealized appreciation
on investments ............................ 14,154
- ------------------------------------------------------------
Total Net Assets: (100.0%) ............. $96,498
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
(90,638,314 / 6,299,466
SHARES OUTSTANDING) ......................... $14.39
- ------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
(4,837,052 / 336,252
SHARES OUTSTANDING) ......................... $14.39
- ------------------------------------------------------------
OFFER PRICE PER SHARE -- INVESTOR CLASS A
($14.39 / 95.5%) ............................ $15.07
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B (1)
(1,023,002 / 71,994
SHARES OUTSTANDING) ......................... $14.21
============================================================
* Non-income producing security.
Cl--Class
GNMA--Government National Mortgage Association
(1) Investors Class B has a contingent deferred sales charge. For description
of a possible redemption charge, see the notes to the financial statements.
(A) Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
[THIS PAGE LEFT INTENTIONALLY BLANK]
<PAGE>
STATEMENT OF OPERATIONS CRESTFUNDS, INC.
For the Period Ended May 31, 1997 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: .................................... $21,893 $11,707 $3,621 $2,528 $9,784
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ......................... 1,481 869 403 194 837
Waiver of Investment Advisory Fees ............... -- -- -- -- --
Administrative Fees .............................. 586 326 151 58 209
Waiver of Administrative Fees .................... -- -- -- -- --
Custodian/Transfer Agent Fees .................... 346 174 79 35 110
Professional Fees ................................ 53 38 17 2 12
Director Fees .................................... 11 7 4 1 3
Registration & Filing Fees ....................... 22 17 5 2 26
Insurance Expense ................................ 4 2 2 1 1
Distribution Fees--Trust Class ................... 528 326 148 58 208
Waiver of Distribution Fees--Trust Class ......... (528) (326) (148) (58) (208)
Distribution Fees--Investors Class A ............. 155 -- 8 1 2
Waiver of Distribution Fees--Investors Class A ... (155) -- (8) (1) (2)
Distribution Fees--Investors Class B ............. -- -- -- -- --
Waiver of Distribution Fees--Investors Class B ... -- -- -- -- --
Printing Fees .................................... 19 12 6 1 4
Miscellaneous Fees ............................... 16 (14) (2) 4 20
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses ................................. 2,538 1,431 665 298 1,222
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income ............................... 19,355 10,276 2,956 2,230 8,562
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on Investments ............. 33 -- (3) (295) (1,393)
Change in Net Unrealized Appreciation (Depreciation)
of Investments ................................... -- -- -- (914) (5,667)
- ---------------------------------------------------------------------------------------------------------------------------
Change in Net Realized and Unrealized Gain (Loss)
on Investments ................................... 33 -- (3) (1,209) (7,060)
- ---------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
from Operations .................................. 19,388 10,276 2,953 1,021 1,502
===========================================================================================================================
<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.
30
<PAGE>
STATEMENT OF OPERATIONS CRESTFUNDS, INC.
For the Period Ended May 31, 1997 Unaudited
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
(IN THOUSANDS)
- --------------------------------------------------------------------------------------------------------------------------------
VIRGINIA INTERMEDIATEVIRGINIA MARYLAND CAPITAL SPECIAL
GOVERNMENT MUNICIPAL MUNICIPAL MUNICIPAL VALUE APPRECIATION EQUITY
BOND FUND BOND FUND BOND FUND BOND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Income: ....................... $1,089 $6,651 $458 $179 $1,093 $ 192 $185
Dividend Income: ....................... -- -- -- -- 4,758 302 234
- --------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ............ 98 617 50 21 2,025 267 326
Waiver of Investment Advisory Fees .. (16) -- (8) (15) -- -- --
Administrative Fees ................. 24 185 13 6 405 53 65
Waiver of Administrative Fees ....... (24) -- (13) (3) -- -- --
Custodian/Transfer Agent Fees ....... 13 108 8 3 223 27 38
Professional Fees ................... 1 6 2 (1) 30 (1) 3
Director Fees ....................... -- 2 -- -- 6 (1) 1
Registration & Filing Fees .......... 4 36 3 2 40 6 3
Insurance Expense ................... -- 1 -- -- 3 -- --
Distribution Fees--Trust Class ...... 24 179 12 5 386 50 61
Waiver of Distribution Fees--
Trust Class ....................... (24) (179) (12) (5) (386) (50) (61)
Distribution Fees--Investors Class A -- 6 -- -- 14 4 3
Waiver of Distribution Fees--
Investors Class A ................. -- (6) -- -- (14) (4) (3)
Distribution Fees--Investors Class B 4 -- 4 1 30 -- 5
Waiver of Distribution Fees--
Investors Class B ................. (1) -- (1) -- (10) -- (1)
Printing Fees ....................... -- 2 1 -- 10 -- 1
Miscellaneous Fees .................. 9 6 4 10 12 24 8
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses .................... 112 963 63 24 2,774 375 449
- --------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) ...... 977 5,688 395 155 3,077 119 (30)
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss)
on Investments ...................... (170) 592 26 (6) 52,074 1,719 5,735
Change in Net Unrealized Appreciation
(Depreciation) of Investments ....... (573) (3,296) (271) (66) 3,510 6,422 1,116
- --------------------------------------------------------------------------------------------------------------------------------
Change in Net Realized and Unrealized
Gain (Loss) on Investments .......... (743) (2,704) (245) (72) 55,584 8,141 6,851
- --------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
from Operations ..................... 234 2,984 150 83 58,661 8,260 6,821
================================================================================================================================
<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.
31
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1997 (Unaudited) and for the Period
Ended November 30, 1996
<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
------------ ------------ ------------- ------------- ----------- -----------
12/01/96 12/01/95 12/01/96 12/01/95 12/01/96 12/01/95
TO 05/31/97 TO 11/30/96 TO 05/31/97 TO 11/30/96 TO 05/31/97 TO 11/30/96
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ............. $ 19,355 $ 28,174 $ 10,276 $ 18,524 $ 2,956 $ 5,282
Net Realized Gain (Loss) on Investments. 33 7 -- -- (3) 392
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations 19,388 28,181 10,276 18,524 2,953 5,674
- ------------------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ....................... (17,481) (25,572) (10,276) (18,524) (2,897) (5,218)
Investors Class A ................. (1,924) (2,601) -- -- (59) (64)
Investors Class B ................. -- (1) -- -- -- --
Capital Gains
Trust Class ....................... -- -- -- -- -- (380)
Investors Class A ................. -- -- -- -- -- (4)
Investors Class B ................. -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (19,405) (28,174) (10,276) (18,524) (2,956) (5,666)
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Assets (17) 7 -- -- (3) 8
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (All at $1.00 Per Share):
Trust Class:
Proceeds from Shares Issued ....... 743,899 948,964 642,938 897,803 174,333 275,099
Reinvestment of Cash Distributions. 483 833 94 137 -- --
Cost of Shares Redeemed ........... (614,228) (848,850) (516,046) (879,343) (156,145) (295,120)
-------- -------- -------- -------- -------- --------
Total Trust Class Transactions 130,154 100,947 126,986 18,597 18,188 (20,021)
-------- -------- -------- -------- -------- --------
Investors Class A:
Proceeds from Shares Issued ....... 53,480 74,370 -- -- 7,151 5,955
Reinvestment of Cash Distributions. 1,923 2,608 -- -- 60 69
Cost of Shares Redeemed ........... (31,823) (51,807) -- -- (3,734) (4,657)
-------- -------- -------- -------- -------- --------
Total Investors Class A Transactions 23,580 25,171 -- -- 3,477 1,367
-------- -------- -------- -------- -------- --------
Investors Class B:
Proceeds from Shares Issued ....... 22 -- -- -- -- --
Reinvestment of Cash Distributions. 1 1 -- -- -- --
Cost of Shares Redeemed ........... -- (7) -- -- -- --
-------- -------- -------- -------- -------- --------
Total Investors Class B Transactions 23 (6) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions .......... 153,757 126,112 126,986 18,597 21,665 (18,654)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 153,740 126,119 126,986 18,597 21,662 (18,646)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................. 686,565 560,446 389,051 370,454 185,314 203,960
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period ....................... $840,305 $686,565 $516,037 $389,051 $206,976 $185,314
====================================================================================================================================
<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.
32
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1997 (Unaudited) and for
the Period Ended November 30, 1996
<TABLE>
<CAPTION>
(IN THOUSANDS)
- ---------------------------------------------------------------------------------------------------------------------------
LIMITED TERM LIMITED TERM INTERMEDIATE INTERMEDIATE GOVERNMENT GOVERNMENT
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
------------ ------------ ------------ ------------ ---------- ----------
12/01/96 12/01/95 12/01/96 12/01/95 12/01/96 12/01/95
TO 05/31/97 TO 11/30/96 TO 05/31/97 TO 11/30/96 TO 05/31/97 TO 11/30/96
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ............. $ 2,230 $ 4,783 $ 8,562 $ 7,930 $ 977 $ 918
Net Realized Gain (Loss) on Investments (295) (555) (1,393) 524 (170) (92)
Change in Net Unrealized Appreciation
(Depreciation) of Investments ... (914) (476) (5,667) 1,883 (573) (155)
- ---------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations 1,021 3,752 1,502 10,337 234 671
- ---------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ....................... (2,200) (4,716) (8,480) (7,848) (958) (893)
Investors Class A ................. (29) (90) (63) (115) -- --
Investors Class B ................. -- -- -- -- (19) (25)
In Excess of Net Investment Income
Trust Class ....................... -- -- -- -- -- --
Investors Class A ................. -- -- -- -- -- --
Investors Class B ................. -- -- -- -- -- --
Capital Gains
Trust Class ....................... -- -- -- -- -- --
Investors Class A ................. -- -- -- -- -- --
Investors Class B ................. -- -- -- -- -- --
In Excess of Capital Gains
Trust Class ....................... -- -- -- -- -- --
Investors Class A ................. -- -- -- -- -- --
Investors Class B ................. -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions ............. (2,229) (4,806) (8,543) (7,963) (977) (918)
- ---------------------------------------------------------------------------------------------------------------------------
Change in Net Assets ................... (1,208) (1,054) (7,041) 2,374 (743) (247)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued ....... 18,531 30,369 40,275 232,804 20,719 13,571
Reinvestment of Cash Distributions. 1,176 2,917 1,017 2,198 383 42
Cost of Shares Redeemed ........... (29,050) (36,075) (32,001) (38,078) (4,155) (3,415)
------- ------- ------- ------- ------ ------
Total Trust Class Transactions .. (9,343) (2,789) 9,291 196,924 16,947 10,198
------- ------- ------- ------- ------ ------
Investors Class A:
Proceeds from Shares Issued........ 9 587 63 758 -- --
Reinvestment of Cash Distributions. 24 73 52 98 -- --
Cost of Shares Redeemed ........... (204) (969) (371) (328) -- --
------- ------- ------- ------- ------ ------
Total Investors Class A Transactions (171) (309) (256) 528 -- --
------- ------- ------- ------- ------ ------
Investors Class B:
Proceeds from Shares Issued........ -- -- -- -- 156 381
Reinvestment of Cash Distributions -- -- -- -- 14 19
Cost of Shares Redeemed ........... -- -- -- -- (6) (18)
------- ------- ------- ------- ------ ------
Total Investors Class B Transactions -- -- -- -- 164 382
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions .......... (9,514) (3,098) 9,035 197,452 17,111 10,580
- ---------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets (10,722) (4,152) 1,994 199,826 16,368 10,333
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................. 86,095 90,247 283,425 83,599 20,869 10,536
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period ....................... $ 75,373 $ 86,095 $285,419 $283,425 $37,237 $20,869
- ---------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Trust Class:
Shares Issued ..................... 1,843 3,067 4,146 23,858 2,043 1,315
Shares Issued in Lieu of Cash Distributions 120 295 105 225 38 4
Shares Redeemed ................... (2,960) (3,652) (3,289) (3,883) (412) (332)
------- ------- ------- ------- ------ ------
Total Trust Class Share Transactions (997) (290) 962 20,200 1,669 987
------- ------- ------- ------- ------ ------
Investors Class A:
Shares Issued ..................... 1 59 6 78 -- --
Shares Issued in Lieu of Cash Distributions 2 7 5 9 -- --
Shares Redeemed ................... (21) (98) (38) (33) -- --
------- ------- ------- ------- ------ ------
Total Investors Class A Share Transactions (18) (32) (27) 54 -- --
------- ------- ------- ------- ------ ------
Investors Class B:
Shares Issued ..................... -- -- -- -- 15 37
Shares Issued in Lieu of Cash Distributions -- -- -- -- 1 2
Shares Redeemed ................... -- -- -- -- (1) (2)
------- ------- ------- ------- ------ ------
Total Investors Class B Share Transactions -- -- -- -- 15 37
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital
Share Transactions .................. (965) 322 935 20,254 1,684 1,024
===========================================================================================================================
<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.
33
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1997 (Unaudited) and for the
Period Ended November 30, 1996
<TABLE>
<CAPTION>
(IN THOUSANDS)
- ---------------------------------------------------------------------------------------------------------------------------
VIRGINIA VIRGINIA
INTERMEDIATE INTERMEDIATE VIRGINIA VIRGINIA MARYLAND MARYLAND
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND(1)
------------ ------------ ----------- ----------- ----------- ------------
12/01/96 12/01/95 12/01/96 12/01/95 12/01/96 03/01/96
TO 05/31/97 TO 11/30/96 TO 05/31/97 TO 11/30/96 TO 05/31/97 TO 11/30/96
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ............. $ 5,688 $ 3,992 $ 395 $ 553 $ 155 $ 132
Net Realized Gain (Loss) on Investments 592 123 26 -- (6) (25)
Change in Net Unrealized Appreciation
(Depreciation) of Investments ... (3,296) 7,143 (271) 82 (66) 45
- ---------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From
Operations .......................... 2,984 11,258 150 635 83 152
- ---------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ....................... (5,500) (3,639) (378) (527) (153) (130)
Investors Class A ................. (179) (349) -- -- -- --
Investors Class B ................. -- -- (17) (26) (2) (2)
In Excess of Net Investment Income
Trust Class ....................... -- -- -- -- -- --
Investors Class A ................. -- -- -- -- -- --
Investors Class B ................. -- -- -- -- -- --
Capital Gains
Trust Class ....................... -- -- (11) -- -- --
Investors Class A ................. -- -- -- -- -- --
Investors Class B ................. -- -- (1) -- -- --
In Excess of Capital Gains
Trust Class ....................... -- -- -- -- -- --
Investors Class A ................. -- -- -- -- -- --
Investors Class B ................. -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions ............. (5,679) (3,988) (407) (553) (155) (132)
- ---------------------------------------------------------------------------------------------------------------------------
Change in Net Assets ................... (2,695) 7,270 (257) 82 (72) 20
- ---------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued ....... 18,441 214,918 3,800 13,472 3,173 6,095
Reinvestment of Cash Distributions. 10 11 10 5 2 2
Cost of Shares Redeemed ........... (23,118) (22,461) (3,282) (3,895) (595) (306)
------- ------- ------ ------ ----- -----
Total Trust Class Transactions .. (4,667) 192,468 528 9,582 2,580 5,791
------- ------- ------ ------ ----- -----
Investors Class A:
Proceeds from Shares Issued........ 306 1,145 -- -- -- --
Reinvestment of Cash Distributions. 136 277 -- -- -- --
Cost of Shares Redeemed ........... (800) (1,860) -- -- -- --
------- ------- ------ ------ ----- -----
Total Investors Class A Transactions (358) (438) -- -- -- --
------- ------- ------ ------ ----- -----
Investors Class B:
Proceeds from Shares Issued ....... -- -- 328 359 118 113
Reinvestment of Cash Distributions. -- -- 13 17 2 2
Cost of Shares Redeemed ........... -- -- (55) (216) -- (5)
------- ------- ------ ------ ----- -----
Total Investors Class B Transactions -- -- 286 160 120 110
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions .......... (5,025) 192,030 814 9,742 2,700 5,901
- ---------------------------------------------------------------------------------------------------------------------------
Total Increase(Decrease)in Net Assets (7,720) 199,300 557 9,824 2,628 5,921
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................. 251,322 52,022 16,699 6,875 5,921 --
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period ....................... $243,602 $251,322 $17,256 $16,699 $ 8,549 $5,921
- ---------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Trust Class:
Shares Issued ..................... 1,821 21,786 377 1,331 331 627
Shares Issued in Lieu of
Cash Distributions ................ 1 1 1 -- -- --
Shares Redeemed ................... (2,284) (2,225) (325) (384) (63) (32)
------- ------- ------ ------ ----- -----
Total Trust Class Share Transactions (462) 19,562 53 947 268 595
------- ------- ------ ------ ----- -----
Investors Class A:
Shares Issued ..................... 30 113 -- -- -- --
Shares Issued in Lieu of Cash
Distributions ................... 14 27 -- -- -- --
Shares Redeemed ................... (79) (184) -- -- -- --
------- ------- ------ ------ ----- -----
Total Investors Class A Share
Transactions .................. (35) (44) -- -- -- --
------- ------- ------ ------ ----- -----
Investors Class B:
Shares Issued ..................... -- -- 33 35 12 13
Shares Issued in Lieu of Cash
Distributions ................... -- -- 1 2 -- --
Shares Redeemed ................... -- -- (5) (21) -- (1)
------- ------- ------ ------ ----- -----
Total Investors Class B Share
Transactions -- -- 29 16 12 12
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital
Share Transactions .................. (497) 19,518 82 963 280 607
===========================================================================================================================
<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.
34
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1997 (Unaudited) and for the
Period Ended November 30, 1996
<TABLE>
<CAPTION>
(IN THOUSANDS)
- ---------------------------------------------------------------------------------------------------------------------------
CAPITAL CAPITAL SPECIAL SPECIAL
VALUE VALUE APPRECIATION APPRECIATION EQUITY EQUITY
FUND FUND FUND FUND FUND FUND
----------- ----------- ------------ ------------ ----------- -----------
12/01/96 12/01/95 12/01/96 12/01/95 12/01/96 12/01/95
TO 05/31/97 TO 11/30/96 TO 05/31/97 TO 11/30/96 TO 05/31/97 TO 11/30/96
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ............. $ 3,077 $ 4,777 $ 119 $ 104 $ (30) $ 257
Net Realized Gain on Investments .. 52,074 16,756 1,719 1,899 5,735 3,928
Change in Net Unrealized Appreciation
of investments .................. 3,511 79,107 6,422 4,702 1,116 7,966
- ---------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
From Operations ..................... 58,662 100,640 8,260 6,705 6,821 12,151
- ---------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Trust Class ....................... (3,149) (4,346) (118) (83) (30) (247)
Investors Class A ................. (116) (199) (8) (14) (2) (19)
Investors Class B ................. (18) (23) -- -- -- --
In Excess of Net Investment Income
Trust Class ....................... -- -- -- -- -- --
Investors Class A ................. -- -- -- -- -- --
Investors Class B ................. -- -- -- -- -- --
Capital Gains
Trust Class ....................... (2,857) (14,523) (1,515) -- (2,129) (1,429)
Investors Class A ................. (96) (743) (226) -- (129) (110)
Investors Class B ................. (28) (186) -- -- (27) (21)
In Excess of Capital Gains
Trust Class ....................... -- -- -- -- -- --
Investors Class A ................. -- -- -- -- -- --
Investors Class B ................. -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions ............. (6,264) (20,020) (1,867) (97) (2,317) (1,826)
- ---------------------------------------------------------------------------------------------------------------------------
Change in Net AssetS ................... 52,397 80,620 6,393 6,608 4,504 10,325
- ---------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued ....... 44,372 324,452 56,278 17,305 21,042 29,781
Reinvestment of Cash Distributions. 1,994 10,467 319 8 1,455 1,316
Cost of Shares Redeemed ........... (106,058) (79,508) (21,383) (9,622) (14,034) (17,031)
-------- ------- ------- ------ ------- -------
Total Trust Class Transactions .. (59,692) 255,411 35,214 7,691 8,463 14,066
-------- ------- ------- ------ ------- -------
Investors Class A:
Proceeds from Shares Issued ....... 3,780 4,589 1,157 1,389 310 689
Reinvestment of Cash Distributions. 208 931 233 14 124 122
Cost of Shares Redeemed ........... (2,154) (2,402) (513) (702) (473) (1,437)
-------- ------- ------- ------ ------- -------
Total Investors Class A Transactions 1,834 3,118 877 701 (39) (626)
-------- ------- ------- ------ ------- -------
Investors Class B:
Proceeds from Shares Issued ....... 1,989 2,571 -- -- 117 366
Reinvestment of Cash Distributions. 44 207 -- -- 26 21
Cost of Shares Redeemed ........... (404) (255) -- -- (119) (74)
-------- ------- ------- ------ ------- -------
Total Investors Class B Transactions 1,629 2,523 -- -- 24 313
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions .......... (56,229) 261,052 36,091 8,392 8,448 13,753
- ---------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets (3,832) 341,672 42,484 15,000 12,952 24,078
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................. 576,777 235,105 37,853 22,853 83,546 59,468
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period ....................... $572,945 $576,777 $80,337 $37,853 $ 96,498 $ 83,546
- ---------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Trust Class:
Shares Issued ..................... 3,274 27,872 4,364 1,425 2,401 2,402
Shares Issued in Lieu of Cash
Distributions .................. 150 848 25 1 100 100
Shares Redeemed ................... (7,872) (6,393) (1,586) (799) (1,300) (1,300)
-------- ------- ------- ------ ------- -------
Total Trust Class Share Transactions (4,448) 22,327 2,803 627 1,201 1,202
-------- ------- ------- ------ ------- -------
Investors Class A:
Shares Issued ..................... 276 369 90 117 53 53
Shares Issued in Lieu of Cash Distributions 16 75 19 1 9 9
Shares Redeemed ................... (158) (192) (40) (59) (110) (110)
-------- ------- ------- ------ ------- -------
Total Investors Class A Share
Transactions ................. 134 252 69 59 (48) (48)
-------- ------- ------- ------ ------- -------
Investors Class B:
Shares Issued ..................... 146 205 -- -- 28 28
Shares Issued in Lieu of Cash Distributions 3 17 -- -- 2 2
Shares Redeemed ................... (30) (20) -- -- (6) (6)
-------- ------- ------- ------ ------- -------
Total Investors Class B Share
Transactions ................. 119 202 -- -- 24 24
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase from Capital Share Transactions (4,195) 22,781 2,872 686 1,177 1,178
===========================================================================================================================
<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.
35
<PAGE>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1997 (unaudited)
and for the Years Ended November 30
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS RATIO
NET ------------------------- ---------------------- NET NET OF EXPENSES
ASSET NET REALIZED ASSET ASSETS, RATIO TO AVERAGE
VALUE, NET AND UNREALIZED NET VALUE, END OF EXPENSES NET ASSETS
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE EXCLUDING
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS FEE WAIVERS
- --------------------------------------------------------------------------------------------------------------------------
- -----------------
CASH RESERVE FUND
- -----------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $1.00 0.025 -- (0.025) -- $1.00 5.00%* 751,278 0.65%* 0.80%*
1996 1.00 0.049 -- (0.049) -- 1.00 4.98% 621,139 0.66% 0.81%
1995 1.00 0.053 -- (0.053) -- 1.00 5.45% 520,185 0.66% 0.81%
1994 1.00 0.034 -- (0.034) -- 1.00 3.46% 377,493 0.66% 0.66%
1993 1.00 0.027 -- (0.027) -- 1.00 2.76% 408,036 0.66% 0.66%
1992 1.00 0.036 -- (0.036) -- 1.00 3.66% 496,847 0.61% 0.61%
1991 1.00 0.060 -- (0.060) -- 1.00 6.17%* 396,534 0.51% 0.58%
INVESTORS CLASS A
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $1.00 0.025 -- (0.025) -- $1.00 5.00%* 88,989 0.66%* 1.06%*
1996 1.00 0.049 -- (0.049) -- 1.00 4.97% 65,411 0.67% 1.07%
1995 1.00 0.053 -- (0.053) -- 1.00 5.44% 40,240 0.67% 1.07%
1994 1.00 0.033 -- (0.033) -- 1.00 3.36% 11,832 0.68% 0.97%
1993 (1) 1.00 0.014 -- (0.014) -- 1.00 1.49%* 73 1.16%* 13.00%*
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $1.00 0.021 -- (0.020) -- $1.00 4.14%* 38 1.51%* 1.66%*
1996 1.00 0.040 -- (0.040) -- 1.00 4.08% 15 1.52% 1.67%
1995 (2) 1.00 0.028 -- (0.028) -- 1.00 2.82%* 21 1.52%* 1.67%*
- ------------------------
U.S. TREASURY MONEY FUND
- ------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $1.00 0.024 -- (0.024) -- $1.00 4.76%* 516,037 0.66%* 0.81%*
1996 1.00 0.047 -- (0.047) -- 1.00 4.80% 389,051 0.66% 0.81%
1995 1.00 0.052 -- (0.052) -- 1.00 5.29% 370,454 0.66% 0.81%
1994 1.00 0.033 -- (0.033) -- 1.00 3.30% 319,477 0.66% 0.66%
1993 1.00 0.025 -- (0.025) -- 1.00 2.51% 342,537 0.66% 0.66%
1992 1.00 0.034 -- (0.034) -- 1.00 3.55% 482,881 0.64% 0.65%
1991 1.00 0.058 -- (0.058) -- 1.00 6.00% 279,790 0.56% 0.62%
INVESTORS CLASS A (+)
FOR THE YEARS ENDED NOVEMBER 30,:
1994 1.00 0.008 -- (0.008) -- 1.00 0.79%* -- 0.92%* 29.16%*
1993 1.00 0.003 -- (0.003) -- 1.00 0.34% 17 1.16%* 36.60%*
- -------------------
TAX-FREE MONEY FUND
- -------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $1.00 0.015 -- (0.015) -- $1.00 2.94%* 200,505 0.66%* 0.81%*
1996 1.00 0.029 0.002 (0.029) (0.002) 1.00 3.14% 182,320 0.66% 0.81%
1995 1.00 0.032 -- (0.032) -- 1.00 3.26% 202,333 0.66% 0.81%
1994 1.00 0.021 -- (0.021) -- 1.00 2.07% 157,602 0.67% 0.67%
1993 1.00 0.019 -- (0.019) -- 1.00 1.88% 142,284 0.66% 0.66%
1992 1.00 0.031 -- (0.031) -- 1.00 3.03% 155,458 0.47% 0.62%
1991 1.00 0.046 -- (0.046) -- 1.00 4.72% 166,670 0.27% 0.70%
INVESTORS CLASS A
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $1.00 0.015 -- (0.015) -- $1.00 2.92%* 6,471 0.67%* 1.07%*
1996 1.00 0.029 0.002 (0.029) (0.002) 1.00 3.13% 2,994 0.67% 1.07%
1995 1.00 0.031 -- (0.031) -- 1.00 3.25% 1,627 0.67% 1.07%
1994 1.00 0.020 -- (0.020) -- 1.00 1.98% 757 0.76% 1.44%
1993 (3) 1.00 0.009 -- (0.009) -- 1.00 0.88%* 228 1.16%* 3.00%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO
TO AVERAGE EXCLUDING TURNOVER
NET ASSETS FEE WAIVERS RATE
- ------------------------------------------------
- -----------------
CASH RESERVE FUND
- -----------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
<S> <C> <C>
1997 4.96%* 4.81%* --
1996 4.87% 4.72% --
1995 5.31% 5.16% --
1994 3.37% 3.37% --
1993 2.75% 2.75% --
1992 3.50% 3.50% --
1991 6.00% 5.93% --
INVESTORS CLASS A
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 4.95%* 4.55%* --
1996 4.85% 4.45% --
1995 5.31% 4.91% --
1994 3.35% 3.06% --
1993 (1) 2.25%* (14.09%)* --
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 3.99%* 3.84%* --
1996 4.02% 3.87% --
1995 (2) 4.45%* 4.30%* --
- ------------------------
U.S. TREASURY MONEY FUND
- ------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 4.73%* 4.58%* --
1996 4.69% 4.54% --
1995 5.16% 5.01% --
1994 3.23% 3.23% --
1993 2.52% 2.52% --
1992 3.37% 3.36% --
1991 5.61% 5.55% --
INVESTORS CLASS A (+)
FOR THE YEARS ENDED NOVEMBER 30,:
1994 2.31%* (25.93%)* --
1993 2.02%* (33.42%)* --
- -------------------
TAX-FREE MONEY FUND
- -------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 2.93%* 2.78%* --
1996 2.88% 2.73% --
1995 3.19% 3.04% --
1994 2.06% 2.06% --
1993 1.85% 1.85% --
1992 3.00% 2.85% --
1991 4.39% 3.96% --
INVESTORS CLASS A
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 2.97%* 2.57%* --
1996 2.86% 2.46% --
1995 3.16% 2.76% --
1994 1.97% 1.29% --
1993 (3) 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.
(+) 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.
36
<PAGE>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1997 (unaudited)
and for the Years Ended November 30
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS RATIO
NET ------------------------- ---------------------- NET NET OF EXPENSES
ASSET NET REALIZED ASSET ASSETS, RATIO TO AVERAGE
VALUE, NET AND UNREALIZED NET VALUE, END OF EXPENSES NET ASSETS
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE EXCLUDING
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS FEE WAIVERS
- ---------------------------------------------------------------------------------------------------------------------------
- ----------------------
LIMITED TERM BOND FUND
- ----------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $9.93 0.281 (0.150) (0.281) -- $9.78 1.35% 74,439 0.77%* 0.92%*
1996 10.03 0.534 (0.097) (0.537) -- 9.93 4.52% 84,973 0.78% 0.93%
1995 9.49 0.532 0.534 (0.526) -- 10.03 11.50% 88,789 0.78% 0.93%
1994 10.16 0.480 (0.640) (0.480) (0.030) 9.49 (1.56%) 83,369 0.76% 0.76%
1993 9.81 0.500 0.350 (0.500) -- 10.16 8.84% 85,968 0.77% 0.77%
1992 (4) 10.00 0.070 (0.190) (0.070) -- 9.81 (1.22%) 72,590 1.04%* 1.04%*
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $9.95 0.282 (0.152) (0.280) -- $9.80 1.34% 934 0.78%* 0.93%*
1996 10.06 0.535 (0.109) (0.536) -- 9.95 4.40% 1,122 0.79% 0.94%
1995 9.50 0.530 0.556 (0.526) -- 10.06 11.70% 1,458 0.79% 0.94%
1994 10.17 0.480 (0.650) (0.470) (0.030) 9.50 (1.72%) 593 0.77% 1.03%
1993 (5) 10.11 0.260 0.060 (0.260) -- 10.17 3.16%* 427 1.02%* 1.48%*
- ----------------------
INTERMEDIATE BOND FUND
- ----------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $9.94 0.297 (0.250) (0.297) -- $9.69 0.50% 283,493 0.88%* 1.03%*
1996 10.12 0.550 (0.175) (0.555) -- 9.94 3.92% 281,187 0.88% 1.03%
1995 9.16 0.569 0.954 (0.563) -- 10.12 17.07% 81,870 0.88% 1.03%
1994 10.20 0.530 (1.000) (0.530) (0.040) 9.16 (4.72%) 77,143 0.88% 0.88%
1993 9.70 0.520 0.500 (0.520) -- 10.20 10.69% 58,487 0.90% 0.90%
1992 (4) 10.00 0.080 (0.300) (0.080) -- 9.70 (2.20%)* 13,759 1.15%* 1.15%*
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $9.94 0.297 (0.241) (0.296) -- $9.70 0.60% 1,926 0.89%* 1.04%*
1996 10.12 0.543 (0.169) (0.554) -- 9.94 3.91% 2,238 0.89% 1.04%
1995 9.16 0.572 0.951 (0.563) -- 10.12 17.08% 1,729 0.89% 1.04%
1994 10.19 0.520 (0.990) (0.520) (0.040) 9.16 (4.72%) 1,030 0.89% 1.05%
1993 (6) 10.20 0.290 (0.010) -- (0.290) 10.19 2.72%* 618 1.15%* 1.58%*
- --------------------
GOVERNMENT BOND FUND
- --------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $10.37 0.301 (0.300) (0.301) -- $10.07 0.04% 36,395 0.67%* 1.07%*
1996 10.66 0.591 (0.290) (0.591) -- 10.37 3.02% 20,171 0.69% 1.09%
1995(7) 10.00 0.412 0.753 (0.412) (0.093) 10.66 11.85%* 10,211 0.71%* 1.11%*
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $10.39 0.258 (0.290) (0.257) -- $10.10 (0.29)% 842 1.53%* 1.93%*
1996 10.68 0.503 (0.291) (0.502) -- 10.39 2.12% 698 1.55% 1.95%
1995(8) 10.03 0.338 0.738 (0.333) (0.093) 10.68 10.86%* 325 1.55%* 1.95%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO
TO AVERAGE EXCLUDING TURNOVER
NET ASSETS FEE WAIVERS RATE
- -----------------------------------------------
- ----------------------
LIMITED TERM BOND FUND
- ----------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
<S> <C> <C> <C>
1997 5.73%* 5.58%* 29%
1996 5.41% 5.26% 51%
1995 5.44% 5.29% 36%
1994 4.92% 4.92% 47%
1993 4.95% 4.95% 61%
1992 (4) 4.46%* 4.46%* 2%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 5.72%* 5.57%* 29%
1996 5.39% 5.24% 51%
1995 5.46% 5.31% 36%
1994 4.92% 4.66% 47%
1993 (5) 4.70%* 4.24%* 61%
- ----------------------
INTERMEDIATE BOND FUND
- ----------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 6.13%* 5.98%* 38%
1996 5.70% 5.55% 35%
1995 5.89% 5.74% 37%
1994 5.53% 5.53% 39%
1993 5.15% 5.15% 28%
1992 (4) 4.63%* 4.63%* 0%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 6.11%* 5.96%* 38%
1996 5.54% 5.39% 35%
1995 5.87% 5.72% 37%
1994 5.51% 5.35% 39%
1993 (6) 4.90%* 4.47%* 28%
- --------------------
GOVERNMENT BOND FUND
- --------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 6.00%* 5.60%* 84%
1996 5.75% 5.35% 16%
1995(7) 6.00%* 5.60%* 28%
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 5.12%* 4.72%* 84%
1996 4.89% 4.49% 16%
1995(8) 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.
37
<PAGE>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1997 (unaudited)
and for the Years Ended November 30
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS RATIO
NET ------------------------- ---------------------- NET NET OF EXPENSES
ASSET NET REALIZED ASSET ASSETS, RATIO TO AVERAGE
VALUE, NET AND UNREALIZED NET VALUE, END OF EXPENSES NET ASSETS
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE EXCLUDING
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS FEE WAIVERS
- ---------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $10.22 0.232 (0.110) (0.232) -- $10.11 1.22% 235,862 0.78%* 0.93%*
1996 10.24 0.419 (0.021) (0.418) -- 10.22 4.01% 243,137 0.78% 0.93%
1995 9.21 0.428 1.030 (0.428) -- 10.24 16.09% 43,373 0.72% 0.94%
1994 10.33 0.440 (1.100) (0.440) (0.020) 9.21 (6.53%) 41,365 0.65% 0.77%
1993 (9) 10.00 0.390 0.330 (0.390) -- 10.33 7.25%* 39,392 0.71%* 0.85%*
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $10.21 0.236 (0.115) (0.231) -- $10.10 1.21% 7,740 0.79%* 0.94%*
1996 10.23 0.415 (0.018) (0.417) -- 10.21 4.01% 8,185 0.79% 0.94%
1995 9.20 0.428 1.029 (0.427) -- 10.23 16.10% 8,649 0.73% 0.95%
1994 10.32 0.440 (1.100) (0.440) (0.020) 9.20 (6.56%) 7,481 0.66% 0.80%
1993 (3) 10.22 0.260 0.100 (0.260) -- 10.32 (3.53%)* 4,805 0.66%* 0.90%*
- ----------------------------
VIRGINIA MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $10.28 0.238 (0.152) (0.238) (0.008) $10.12 0.87% 16,190 0.71%* 1.11%*
1996 10.40 0.465 (0.120) (0.465) -- 10.28 3.48% 15,911 0.71% 1.11%
1995(7) 10.00 0.309 0.445 (0.310) (0.044) 10.40 7.67%* 6,247 0.71%* 1.11%*
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $10.31 0.194 (0.152) (0.195) (0.008) $10.15 0.44% 1,066 1.57%* 1.97%*
1996 10.43 0.378 (0.121) (0.377) -- 10.31 2.58% 787 1.57% 1.97%
1995(10) 10.06 0.237 0.409 (0.232) (0.044) 10.43 6.51%* 628 1.57%* 1.97%*
- ----------------------------
MARYLAND MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $9.76 0.212 (0.130) (0.212) -- $9.63 0.86% 8,317 0.67%* 1.32%*
1996(12) 10.00 0.309 (0.240) (0.309) -- 9.76 1.07%* 5,808 0.71%* 1.36%*
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) FOR THE YEARS ENDED NOVEMBER 30,:
1997 $9.76 0.171 (0.121) (0.170) -- $9.64 0.53% 232 1.53%* 2.18%*
1996(13) 9.53 0.200 0.226 (0.196) -- 9.76 7.67%* 113 1.55%* 2.20%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO AVERAGE
TO AVERAGE EXCLUDING TURNOVER COMMISSION
NET ASSETS FEE WAIVERS RATE RATE (A)
- -------------------------------------------------------------
- -----------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
<S> <C> <C> <C>
1997 4.64%* 4.49%* 18% n/a
1996 4.35% 4.20% 25% n/a
1995 4.34% 4.12% 28% n/a
1994 4.48% 4.36% 24% n/a
1993 (9) 4.25%* 4.11%* 39% n/a
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 4.65%* 4.50%* 18% n/a
1996 4.12% 3.97% 25% n/a
1995 4.33% 4.11% 28% n/a
1994 4.47% 4.33% 24% n/a
1993 (3) 4.27%* 4.03%* 39% n/a
- ----------------------------
VIRGINIA MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 4.74%* 4.34%* 29% n/a
1996 4.61% 4.21% 24% n/a
1995(7) 4.61%* 4.21%* 35% n/a
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 3.89%* 3.49%* 29% n/a
1996 3.73% 3.33% 24% n/a
1995(10) 3.76%* 3.36%* 35% n/a
- ----------------------------
MARYLAND MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 4.44%* 3.79%* 6% n/a
1996(12) 4.30%* 3.65%* 9% n/a
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) FOR THE YEARS ENDED NOVEMBER 30,:
1997 3.60%* 2.95%* 6% n/a
1996(13) 3.42%* 2.77%* 9% 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.
(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.
(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.
38
<PAGE>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1997 (unaudited)
and for the Years Ended November 30
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS RATIO
NET ------------------------- ---------------------- NET NET OF EXPENSES
ASSET NET REALIZED ASSET ASSETS, RATIO TO AVERAGE
VALUE, NET AND UNREALIZED NET VALUE, END OF EXPENSES NET ASSETS
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE EXCLUDING
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS FEE WAIVERS
- --------------------------------------------------------------------------------------------------------------------------
- ----------
VALUE FUND
- ----------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $13.39 0.079 1.425 (0.083) (0.070) $14.74 11.27% 543,741 1.02%* 1.17%*
1996 11.60 0.166 2.380 (0.165) (0.591) 13.39 22.68% 553,648 1.02% 1.17%
1995 10.73 0.245 2.619 (0.262) (1.732) 11.60 28.76% 220,386 1.02% 1.17%
1994 11.38 0.200 (0.240) (0.190) (0.420) 10.73 (0.49%) 166,713 1.01% 1.01%
1993 10.50 0.180 0.870 (0.170) -- 11.38 10.05% 167,337 1.03% 1.03%
1992 (4) 10.00 0.030 0.500 (0.030) -- 10.50 5.30%* 82,944 1.28%* 1.28%*
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $13.47 0.078 1.435 (0.082) (0.070) $14.83 11.36% 21,787 1.03%* 1.18%*
1996 11.66 0.169 2.396 (0.164) (0.591) 13.47 22.63% 17,997 1.03% 1.18%
1995 10.78 0.250 2.623 (0.261) (1.732) 11.66 28.71% 12,633 1.03% 1.18%
1994 11.42 0.180 (0.220) (0.180) (0.420) 10.78 (0.45%) 8,115 1.02% 1.04%
1993 (11) 11.06 0.060 0.350 (0.050) -- 11.42 3.71%* 4,058 1.16%* 1.16%*
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $13.44 0.035 1.425 (0.040) (0.070) $14.79 10.96% 7,417 1.68%* 2.03%*
1996 11.64 0.091 2.384 (0.084) (0.591) 13.44 21.81% 5,131 1.68% 2.03%
1995 (7) 11.11 0.120 1.618 (0.136) (1.072) 11.64 15.78%* 2,086 1.68%* 2.03%*
- -------------------------
CAPITAL APPRECIATION FUND
- -------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $13.58 0.019 1.245 (0.023) (0.621) $14.20 9.93% 74,282 1.05%* 1.20%*
1996 10.87 0.043 2.709 (0.042) -- 13.58 25.38% 32,983 1.10% 1.25%
1995 10.17 0.043 2.035 (0.046) (1.332) 10.87 20.74% 19,592 1.10% 1.25%
1994 9.79 0.010 0.380 (0.010) -- 10.17 4.13% 12,869 1.05% 1.05%
1993 (9) 10.00 0.010 (0.210) (0.010) -- 9.79 (2.00%)* 7,741 1.11%* 1.11%*
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $13.44 0.021 1.232 (0.022) (0.621) $14.05 9.96% 6,055 1.06%* 1.21%*
1996 10.76 0.043 2.677 (0.040) -- 13.44 25.34% 4,870 1.11% 1.26%
1995 10.08 0.044 2.013 (0.045) (1.332) 10.76 20.72% 3,261 1.11% 1.26%
1994 9.74 0.010 0.340 (0.010) -- 10.08 3.70% 1,509 1.06% 1.18%
1993 (10) 9.42 -- 0.320 -- -- 9.74 3.40%* 649 1.36%* 1.80%*
- -------------------
SPECIAL EQUITY FUND
- -------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $13.73 (0.004) 1.049 (0.005) (0.380) $14.39 7.85% 90,638 1.02%* 1.17%*
1996 12.12 0.050 1.926 (0.053) (0.313) 13.73 16.44% 77,931 1.04% 1.19%
1995 10.56 0.100 1.928 (0.108) (0.360) 12.12 20.07% 54,221 1.04% 1.19%
1994 12.76 0.030 (0.460) (0.020) (1.750) 10.56 (4.74%) 43,640 1.03% 1.03%
1993 11.19 0.010 1.560 -- -- 12.76 14.07% 32,706 1.03% 1.03%
1992 (4) 10.00 0.010 1.180 -- -- 11.19 11.90%* 21,925 1.28%* 1.28%*
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $13.72 (0.005) 1.060 (0.005) (0.380) $14.39 7.93% 4,837 1.03%* 1.18%*
1996 12.12 0.052 1.911 (0.050) (0.313) 13.72 16.34% 4,660 1.05% 1.20%
1995 10.56 0.100 1.927 (0.107) (0.360) 12.12 20.06% 4,693 1.05% 1.20%
1994 12.76 0.030 (0.460) (0.020) (1.750) 10.56 (4.76%) 3,436 1.04% 1.10%
1993 (3) 11.69 -- 1.070 -- -- 12.76 9.19%* 938 1.28%* 1.61%*
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 $13.62 (0.060) 1.029 -- (0.380) $14.21 7.34% 1,023 1.88%* 2.03%*
1996 12.08 (0.043) 1.899 (0.003) (0.313) 13.62 15.47% 955 1.90% 2.05%
1995 (7) 10.61 0.007 1.501 (0.038) -- 12.08 14.22%* 554 1.90%* 2.05%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO AVERAGE
TO AVERAGE EXCLUDING TURNOVER COMMISSION
NET ASSETS FEE WAIVERS RATE RATE (A)
- --------------------------------------------------------------
- ----------
VALUE FUND
- ----------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
<S> <C> <C> <C> <C>
1997 1.15%* 1.00%* 53% $.0600
1996 1.38% 1.23% 82% .0548
1995 2.16% 2.01% 175% n/a
1994 1.82% 1.82% 116% n/a
1993 1.64% 1.64% 77% n/a
1992 (4) 1.74%* 1.74%* 5% n/a
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 1.14%* 0.99%* 53% $.0600
1996 1.35% 1.20% 82% .0548
1995 2.14% 1.99% 175% n/a
1994 1.81% 1.79% 116% n/a
1993 (11) 1.51%* 1.51%* 77% n/a
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 0.50%* 0.15%* 53% $.0600
1996 0.71% 0.36% 82% .0548
1995 (7) 1.13%* 0.78%* 175% n/a
- -------------------------
CAPITAL APPRECIATION FUND
- -------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 0.33%* 0.18%* 93% $.0642
1996 0.37% 0.22% 86% .0764
1995 0.40% 0.25% 470% n/a
1994 0.17% 0.17% 271% n/a
1993 (9) 0.20%* 0.20%* 133% n/a
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 0.34%* 0.19%* 93% $.0642
1996 0.36% 0.21% 86% .0764
1995 0.39% 0.24% 470% n/a
1994 0.16% 0.04% 271% n/a
1993 (10) (0.05%)* (0.49%)* 133% n/a
- -------------------
SPECIAL EQUITY FUND
- -------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 (0.06%)* (0.21%)* 62% $.0583
1996 0.39% 0.24% 98% .0620
1995 0.90% 0.75% 81% n/a
1994 0.32% 0.32% 117% n/a
1993 0.06% 0.06% 95% n/a
1992 (4) 0.23%* 0.23%* 3% n/a
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 (0.07%)* (0.22%)* 62% $.0583
1996 0.40% 0.25% 98% .0620
1995 0.89% 0.74% 81% n/a
1994 0.31% 0.25% 117% n/a
1993 (3) (0.19%)* (0.52%)* 95% n/a
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1997 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1997 (0.92%)* (1.07%)* 62% $.0583
1996 (0.47%) (0.62%) 98% .0620
1995 (7) (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.
* 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.
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS CRESTFUNDS, INC.
May 31, 1997 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
Capital Appreciation Fund
Special Equity Fund
BOND FUNDS
Limited Term Bond Fund
Intermediate Bond Fund
Government Bond Fund
Virginia Intermediate Municipal Bond Fund
Virginia Municipal 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, Crestar
Asset Management Company, is responsible for determining that the value of
these
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CRESTFUNDS, INC.
May 31, 1997 Unaudited
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.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS--The Financial
Statements have been prepared in conformity with generally accepted
accounting principles which permit management to make certain estimates and
assumptions at the date of the financial statements.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES--The Company's investment advisor is Crestar Asset
Management Company (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 Investments Management Corporation, a wholly-owned subsidiary
of SEI Investments Company (SEI), 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 Investments Distribution Co. (the Distributor), a wholly-owned
subsidiary of SEI, 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
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CRESTFUNDS, INC.
May 31, 1997 Unaudited
Investors Class B. In addition, Crestar Bank serves 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, 1997, for each Fund is as follows:
PURCHASE SALES
(000) (000)
---------- ----------
Limited Term Bond ............. $ 20,085 $ 37,325
Intermediate Bond ............. 104,576 101,795
Government Bond ............... 42,085 25,322
Virginia Intermediate
Municipal Bond ............. 43,960 48,601
Virginia Municipal Bond ....... 4,681 4,889
Maryland Municipal Bond ....... 2,461 398
Value ......................... 264,962 348,267
Capital Appreciation .......... 89,703 59,244
Special Equity ................ 54,295 49,960
At May 31, 1997, 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, 1997,
for each Fund is as follows:
NET
APPRECIATION DEPRECIATION APPRECIATION/DEPRECIATION
(000) (000) (000)
------------ ------------ -------------------------
Limited Term Bond ...... $ 224 $ 644 $ (420)
Intermediate Bond ...... 2,496 2,588 (92)
Government Bond ........ 66 244 (178)
Virginia Intermediate
Municipal Bond ...... 5,272 858 4,412
Virginia Municipal
Bond ................ 125 99 26
Maryland Municipal
Bond ................ 52 73 (21)
Value .................. 103,085 2,516 100,569
Capital Appreciation ... 12,249 204 12,045
Special Equity ......... 16,212 2,058 14,154
Subsequent to October 31, 1996, the Funds recognized net capital losses for tax
purposes that have been deferred to 1997 and can be used to offset future
capital gains at November 30, 1997. The Funds also had capital losses
carryforward at November 30, 1996, to the extent provided in the regulations for
Federal income tax as follows:
CAPITAL LOSS
CARRYOVER
11/30/96 EXPIRES 2000 EXPIRES 2001
------------ ------------ ------------
Cash Reserve ........... $ 78,711 $ -- $ --
Limited Term Bond ...... 1,594,093 -- --
Intermediate Bond ...... 1,949,930 -- --
Government Bond ........ 93,079 -- --
Virginia Intermediate
Municipal Bond ...... 820,439 -- --
Maryland Municipal Bond 25,459 -- --
POST 10/31/96
EXPIRES EXPIRES EXPIRES DEFERRED
2002 2003 2004 LOSSES
------- ------- ------- -------------
Cash Reserve ........... $ 64,350 $ 14,361 $ -- $ --
Limited Term Bond ...... 784,783 254,023 555,287 --
Intermediate Bond ...... 1,282,277 667,656 -- --
Government Bond ........ -- -- 93,079 --
Virginia Intermediate
Municipal Bond ...... 422,394 398,042 -- --
Virginia Municipal
Bond ................ -- -- -- 11,672
Maryland Municipal
Bond ................ -- -- 25,459 --
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded) CRESTFUNDS, INC.
May 31, 1997 Unaudited
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.
6. AFFILIATED TRANSACTIONS:
On September 20, 1996, the assets of Crestar Bank's Common Trust Funds: the
SouthEast Equity, Value, Tax Exempt and Bond Funds, consisting entirely of
securities and certain related receivables, were converted on a tax-free basis
into the Special Equity, Value, Virginia Intermediate Bond and Intermediate Bond
Funds, respectively. The number of shares issued for each fund and the net
assets of each fund (including net unrealized gain/loss) immediately before the
conversion were as follows:
UNREALIZED
COMMON TRUST FUND ASSETS GAIN/(LOSS)
- ----------------- ------------ -----------
SouthEast Equities $ 11,962,678 $ 1,839,279
Value 198,034,029 19,525,691
Tax Exempt 188,792,454 3,213,456
Bond 156,399,438 (1,355,800)
MUTUAL FUNDS NET ASSETS SHARES ISSUED
- ------------------ ------------ --------------
Special Equity $ 59,964,348 904,208.452
Value 333,187,057 16,022,170.650
Virgina Intermediate
Municipal Bond 67,497,327 18,879,245.360
Intermediate Bond 118,798,561 16,257,737.881
The Net Asset value of shares issued in exchange for the assets and number of
shares in the tax-free conversions are included in capital share transactions
and shares issued and redeemed, respectively, of the Trust Class in the
Statement of Changes in Net Assets for each respective fund.
- --------------------------------------------------------------------------------
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
INVESTMENTS DISTRIBUTION CO. 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
INVESTMENTS DISTRIBUTION CO. AND CRESTAR BANK ARE NOT AFFILIATED.
- --------------------------------------------------------------------------------
43
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CREST
----------
FUNDS
A FAMILY OF MUTUAL FUNDS
MANAGED BY
CRESTAR ASSET MANAGEMENT COMPANY
