[CRESTAR LOGO OMITTED]
MAY 31, 1998
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
Life Vision Maximum Growth Portfolio
Life Vision Growth and Income Portfolio
Life Vision Balanced Portfolio
Semi-Annual Report
<PAGE>
<PAGE>
CRESTFUNDS, INC.
DEAR CRESTFUNDS SHAREHOLDER:
The financial markets generated healthy returns over the past six months for
both stocks and bonds in an environment characterized by continued strong
economic growth and low inflation. While above-average growth and below-average
inflation have been a consistent pattern in recent years, both growth and
inflation now appear to have two faces with different potential outcomes for
stocks and bonds in the period ahead.
The debate over the future direction of growth, prices, profits and
investment returns seems to center on the financial crisis in the Far East.
Japan, an economic powerhouse, along with its Pacific Rim neighbors such as
Indonesia, Korea and Thailand continue to struggle under the weight of slower
growth, heavy debt burdens, and a crisis of confidence in their currencies and
in some cases the government itself. The potential contagion of these events on
the other side of the globe have not gone unnoticed by investors.
A REVIEW OF THE SIX MONTHS:
The initial effect of the problems in the Far East on the U.S. economy were
largely positive. Foreign capital flowed to the perceived quality of the dollar,
pushing down domestic interest rates and elevating the relative value of the
U.S. currency. Lower interest rates stimulated the housing, auto and other
interest-sensitive markets, while the stronger dollar helped restrain inflation
pressures. Real gross domestic product grew at 3.7% and 4.8% annual rates during
the fourth and first quarters, respectively. This was comfortably higher than
the 2-21/2% long term average rate of growth for the U.S. and quite remarkable
in the seventh year of economic expansion. The drag on growth from lower exports
was more than offset by a surge in the housing, auto, and related industries.
Aggregate inflation moved lower during the period, with the Consumer Price
Index increasing a scant 1.4% for the twelve months ending in April. The
continued improvement in inflation was due in part to weakness in the energy
prices related to El Nino's warm weather as well as falling prices of Asian
imports. However, the strength in the economy appeared to push up prices in
domestically-captive industries such as housing and medical care, which have
increased at least twice the general level of inflation.
Economically speaking, the darker side of the Asian crisis was reflected in
slower corporate profits growth in the first quarter. Weaker export demand and
increased price competition were cited as factors squeezing profit margins and
profitability. Year over year growth in S&P 500 profits moderated to just 3.7%
in the first quarter, and in May analysts began to revise down future earnings
estimates, though only modestly.
The Federal Reserve kept short term interest rates unchanged during the
period as policy makers wrestled with the conflicting pressures from Asian
Contagion. The steady policy from the Fed was a relief to many investors who
continued to pour billions of dollars into stock and bond funds, helping to
raise stock prices and lower long term interest yields.
Equity market performance as measured by the S&P 500 registered a 14.6% gain
(price-only) during the past two quarters, and a 29.2% advance for the last
twelve months. This compared quite favorably to the 9.6% average annual price
appreciation in the index over the past fifty years. The popular Dow Jones
Industrial Average increased 14.2% during the past six months and 21.4% in the
past year. However, mid-sized and small company stock performance trailed the
larger stock indexes since last November. The S&P Mid Cap Index was up 11.4% on
a price-only basis while the S&P Small Cap Index rose 8.1%. The decline in long
term interest rates was also favorable for the fixed income markets. The Lehman
Brothers Intermediate Aggregate Index generated a 3.72% return, while the Long
Treasury Index had a total return of 5.58%.
THE NEAR TERM ECONOMIC OUTLOOK:
The near term outlook for the U.S. economy remains positive, and inflation is
not likely to accelerate significantly if at all. The momentum in the housing
markets is considerable at present and may stimulate demand in related
industries such as furniture and appliances in the months ahead. Consumer
confidence is historically high and the unemployment rate is low. These are all
very positive forces for the domestic economy. The decline in exports to the
Pacific Rim countries, and the increased pricing pressure from the strong dollar
could hurt the manufacturing sector, however. With company pricing power
considered to be limited based on recent surveys, and foreign demand slowing,
corporate
1
<PAGE>
profits could continue to be under downward pressure. In this environment we
believe the economy is likely to slow in the second half of this year, but the
risks of recession are very low at present. The current balance of positive and
negative influences in the economy is expected to keep monetary policy steady
for the immediate future.
THE OUTLOOK FOR THE FINANCIAL MARKETS:
The equity markets enjoyed a good "year" of performance during the past six
months, and fixed-income markets have benefited from the "safe haven" status of
the dollar and U.S. Treasuries. Continued economic growth and low inflation are
essential ingredients in prolonging the current stock market rally, but we want
to stress the importance of continued growth in corporate profits. The cost and
pricing pressures facing corporations could reduce profit margins in the coming
quarters, while slower growth may curb volume. These forces could have differing
impacts on individual companies and industries, increasing the importance of
detailed company scrutiny to reduce the potential of negative surprises.
In the fixed-income markets, the stable Federal Reserve policy that
encouraged bond investors in recent months may be an obstacle to further
near-term yield declines, where long maturity yields are very close to the 51/2%
overnight rate established by the Fed. Further sustained appreciation in these
markets may require a more accommodative interest rate stance from monetary
policy makers. Recent comments from Fed officials suggest that a rate cut is
unlikely over the near term. Over the longer term, however, we believe the
economic and financial conditions could favor continued appreciation in both
stocks and bonds.
On behalf of all of us who manage CrestFunds, I wish to express our sincere
appreciation for the opportunity to serve you. We are committed to helping you
achieve your long range financial goals. 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 and part of the Crestar Investment Group.
may 1998
2
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
CASH RESERVE FUND
Face
Amount Value
(000) (000)
------ ------
COMMERCIAL PAPER (23.0%)
FINANCIAL SERVICES (23.0%)
Den Norske Bank
5.470%, 07/08/98 ................. $25,152 $ 25,011
Ford Motor Credit
5.630%, 06/30/98 ................. 35,000 34,846
5.710%, 10/02/98 ................. 15,000 14,719
General Electric Capital
5.400%, 07/06/98 ................. 25,000 24,869
5.520%, 08/17/98 ................. 25,000 24,713
General Motors Acceptance
5.360%, 07/31/98 ................. 35,000 34,687
Goldman Sachs
5.820%, 06/12/98 ................. 20,000 19,965
5.480%, 02/09/99 ................. 30,000 28,845
Merrill Lynch
5.320%, 10/30/98 ................. 20,000 19,554
5.551%, 11/13/98 ................. 25,000 24,389
- ---------------------------------------------------------
Total Commercial Paper
(Cost $251,598) .............. 251,598
- ---------------------------------------------------------
CERTIFICATES OF DEPOSIT (18.3%)
Bankers Trust
5.970%, 08/28/98 ................. 25,000 24,998
Bankers Trust (A)
5.650%, 06/01/98 ................. 20,000 19,997
CS First Boston
5.920%, 12/14/98 ................. 10,000 10,000
5.800%, 05/06/99 ................. 15,000 15,000
NationsBank
5.530%, 06/22/98 ................. 50,000 50,000
Norinchukin Bank
5.980%, 09/18/98 ................. 20,000 20,001
Societe Generale
5.970%, 09/15/98 ................. 10,000 9,999
5.850%, 12/17/98 ................. 10,000 9,996
5.700%, 01/07/99 ................. 20,000 20,016
5.670%, 03/11/99 ................. 20,000 19,994
- ---------------------------------------------------------
Total Certificates of Deposit
(Cost $200,001) .............. 200,001
- ---------------------------------------------------------
BANK NOTES (11.9%)
FCC National Bank (A)
5.610%, 06/01/98 ................. 40,000 39,997
First of America Bank
5.940%, 08/31/98 ................. 20,000 19,998
Face
Amount Value
(000) (000)
------ ------
Key Bank NA (A)
5.550%, 06/01/98 ................. $40,000 $ 39,980
PNC Bank NA (A)
5.550%, 06/01/98 ................. 30,000 29,983
- ---------------------------------------------------------
Total Bank Notes
(Cost $129,958) .............. 129,958
- ---------------------------------------------------------
CORPORATE OBLIGATIONS (15.6%)
BANKS (1.8%)
Bankers Trust MTN (A)
5.570%, 06/01/98 ................. 20,000 19,990
- ---------------------------------------------------------
COMPUTERS & SERVICES (4.1%)
IBM (A)
5.610%, 06/01/98 ................. 45,000 44,989
- ---------------------------------------------------------
FINANCIAL SERVICES (6.9%)
Associates of North America
8.800%, 08/01/98 ................. 15,000 15,065
PHH MTN (A)
5.620%, 06/01/98 ................. 30,000 29,998
5.690%, 06/01/98 ................. 30,000 29,999
- ---------------------------------------------------------
75,062
- ---------------------------------------------------------
SECURITY BROKERAGE/DEALERS (2.8%)
Bear Stearns MTN
5.700%, 03/02/99 ................. 15,000 15,000
Bear Stearns MTN (A)
5.670%, 06/01/98 ................. 15,000 15,000
- ---------------------------------------------------------
30,000
- ---------------------------------------------------------
Total Corporate Obligations
(Cost $170,041) .............. 170,041
- ---------------------------------------------------------
INSURANCE FUNDING AGREEMENTS (11.9%)
General American Life (A)
5.860%, 06/01/98 ................. 65,000 65,000
Integrity Life (A)
5.860%, 06/01/98 ................. 65,000 65,000
- ---------------------------------------------------------
Total Insurance Funding Agreements
(Cost $130,000) .............. 130,000
- ---------------------------------------------------------
3
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
CASH RESERVE FUND (concluded)
Face
Amount Value
(000) (000)
------ ------
REPURCHASE AGREEMENTS (19.1%)
Deutsche Bank
5.56%, dated 05/29/98, matures
06/01/98, repurchase price
$127,683,263 (collateralized by
various U.S. Government Agency
obligations: total market
value: $130,177,531) .............. $127,624 $ 127,624
J.P. Morgan
5.56%, dated 05/29/98, matures
06/01/98, repurchase price
$32,100,969 (collateralized by
various GNMA obligations: total
market value: $32,727,826) ........ 32,086 32,086
Merrill Lynch 5.56%, dated 05/29/98,
matures 06/01/98, repurchase price
$28,905,654 (collateralized by
various GNMA obligations: total
market value: $29,472,216) ........ 28,892 28,892
Paine Webber
5.56%, dated 05/29/98, matures
06/01/98, repurchase price
$20,515,500 (collateralized by
various FNMA obligations: total
market value: $20,917,126) ........ 20,506 20,506
- ---------------------------------------------------------
Total Repurchase Agreements
(Cost $209,108) .............. 209,108
- ---------------------------------------------------------
Total Investments (99.8%)
(Cost $1,090,706) ............ 1,090,706
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.2%) .... 2,481
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 4.0 billion
shares authorized) based on 934,998,439
outstanding shares ........................ 935,000
Portfolio Shares of Investor Class A
($.001 par value -- .25 billion shares
authorized) based on 158,193,786
outstanding shares ........................ 158,194
Portfolio Shares of Investor Class B
($.001 par value -- .25 billion shares
authorized) based on 38,676
outstanding shares ........................ 39
Undistributed net investment income ......... 1
Accumulated net realized loss on investments (47)
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............. $1,093,187
- ---------------------------------------------------------
Value
------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($934,951,249 / 934,998,439
SHARES OUTSTANDING) ......................... $1.00
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
($158,196,861 / 158,193,786
SHARES OUTSTANDING) ......................... $1.00
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B
($38,675 / 38,676 SHARES OUTSTANDING) ....... $1.00
=========================================================
(A) Adjustable Rate Security--The rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1998. 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.
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, 1998 Unaudited
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY FUND
Face
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (18.0%)
U.S. Treasury Notes
5.250%, 07/31/98 .................. $10,000 $ 9,992
6.125%, 08/31/98 .................. 10,000 10,009
6.000%, 09/30/98 .................. 20,000 20,029
5.875%, 10/31/98 .................. 10,000 10,009
5.500%, 11/15/98 .................. 10,000 9,993
5.000%, 01/31/99 .................. 10,000 9,956
5.000%, 02/15/99 .................. 10,000 9,964
6.250%, 03/31/99 .................. 10,000 10,059
6.375%, 04/30/99 .................. 10,000 10,074
- ---------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $100,085) ............... 100,085
- ---------------------------------------------------------
REPURCHASE AGREEMENTS (80.4%)
Deutsche Bank
5.51%, dated 05/29/98, matures
06/01/98, repurchase price $26,586,943
(collateralized by U.S. Treasury Bond:
total market value: $27,106,571) ... 26,575 26,575
Greenwich Bank
5.51%, dated 05/29/98, matures
06/01/98, repurchase price $27,107,391
(collateralized by U.S. Treasury Note:
total market value: $27,641,533) ... 27,095 27,095
J.P. Morgan
5.51%, dated 05/29/98, matures
06/01/98, repurchase price $26,606,821
(collateralized by U.S. Treasury STRIPS:
market value: $27,126,649) ......... 26,595 26,595
Merrill Lynch
5.51%, dated 05/29/98, matures
06/01/98, repurchase price
$26,289,834 (collateralized by various
U.S. Treasury obligations: total
market value: $26,805,971) ......... 26,278 26,278
Morgan Stanley
5.51%, dated 05/29/98, matures
06/01/98, repurchase price
$16,655,857 (collateralized by various
U.S. Treasury Notes: total market
value: $16,989,979) ................ 16,648 16,648
PaineWebber
5.51%, dated 05/29/98, matures
06/01/98, repurchase price
$27,050,775 (collateralized by
U.S. Treasury STRIPS: total market
value: $27,580,667) ................ 27,038 27,038
Prudential
5.51%, dated 05/29/98, matures
06/01/98, repurchase price
$26,815,792 (collateralized by various
U.S. Treasury obligations: total market
value: $27,339,611) ................ 26,804 26,804
Face
Amount Value
(000) (000)
------ ------
Swiss Bank
5.51%, dated 05/29/98, matures
06/01/98, repurchase price
$137,293,351 (collateralized by
various U.S. Treasury obligations:
total market value: $139,978,765) .. $137,230 $137,230
Union Bank of Switzerland
5.51%, dated 05/29/98, matures
06/01/98, repurchase price
$132,843,805 (collateralized by
various U.S. Treasury Bills: total
market value: $135,440,878) ........ 132,783 132,783
- ---------------------------------------------------------
Total Repurchase Agreements
(Cost $447,046) ............... 447,046
- ---------------------------------------------------------
Total Investments (98.4%)
(Cost $547,131) ............... 547,131
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (1.6%) ........ 8,965
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 3.75 billion
shares authorized) based on
556,098,482 outstanding shares ................ 556,098
Overdistributed net investment income ........... (2)
- ---------------------------------------------------------
Total Net Assets: (100.0%) .................$556,096
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($556,096,886 / 556,098,482
SHARES OUTSTANDING) ............................. $1.00
=========================================================
STRIPS--Separate Trading of Registered Interest and
Principal of Securities
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
TAX-FREE MONEY FUND
Face
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (94.1%)
DISTRICT OF COLUMBIA (5.0%)
District of Columbia, Tax & Revenue
Anticipation Note, Ser B, GO (B)
4.500%, 09/30/98 .................. $10,000 $ 10,020
- ---------------------------------------------------------
HAWAII (1.4%)
Hawaii State, Housing Finance &
Development Authority, Single
Family Housing, AMT, RB (A) (B)
4.040%, 06/04/98 .................. 2,860 2,860
- ---------------------------------------------------------
ILLINOIS (2.5%)
Chicago, O'Hare International Airport,
AMT, RB, AMBAC (A)
4.040%, 06/04/98 .................. 5,000 5,000
- ---------------------------------------------------------
MARYLAND (8.3%)
Montgomery County, Issue 1,
AMT, RB (A) (B)
4.050%, 06/03/98 .................. 8,000 8,000
Montgomery County, TECP (B)
3.650%, 08/10/98 .................. 6,000 6,000
3.600%, 09/10/98 .................. 2,850 2,850
- ---------------------------------------------------------
16,850
- ---------------------------------------------------------
NEW YORK (12.8%)
New York City, GO, AMBAC (A)
4.020%, 06/04/98 .................. 11,960 11,960
New York City, Water & Sewer
Finance Authority, RB, FSA (A)
4.000%, 06/04/98 .................. 9,000 9,000
New York State Dorm Authority,
RB, MBIA (A)
4.020%, 06/04/98 .................. 5,000 5,000
- ---------------------------------------------------------
25,960
- ---------------------------------------------------------
NORTH CAROLINA (2.0%)
Wake County, Public Improvements, GO
4.400%, 03/01/99 .................. 4,000 4,023
- ---------------------------------------------------------
PENNSYLVANIA (6.7%)
Emmaus, General Authority, RB, FSA (A)
3.800%, 06/03/98 .................. 3,500 3,500
Pittsburgh, RB, FGIC (A)
4.020%, 06/04/98 .................. 10,000 10,000
- ---------------------------------------------------------
13,500
- ---------------------------------------------------------
SOUTH CAROLINA (4.1%)
Florence County, McLeod Regional
Medical Center Project, Ser A,
RB, FGIC (A)
4.150%, 06/04/98 .................. 8,200 8,200
- ---------------------------------------------------------
Face
Amount Value
(000) (000)
------ ------
SOUTH DAKOTA (2.5%)
Heartland Consumers Power District,
RB, FSA (A)
4.020%, 06/04/98 .................. $5,035 $ 5,035
- ---------------------------------------------------------
TENNESSEE (2.5%)
Shelby County, Health, Educational &
Housing Facilities, Multi Family
Housing, AMT, Ser A, RB (A) (B)
4.050%, 06/03/98 .................. 5,000 5,000
- ---------------------------------------------------------
TEXAS (11.4%)
Houston, Water & Sewer System,
RB, FGIC (A)
4.020%, 06/04/98 .................. 5,000 5,000
Plano, TECP, MBIA
3.450%, 06/09/98 .................. 9,000 9,000
San Antonio, Electric & Gas,
RB (A) (B)
4.020%, 06/04/98 .................. 9,000 9,000
- ---------------------------------------------------------
23,000
- ---------------------------------------------------------
VIRGINIA (34.9%)
Fairfax County, Public Improvements,
GO (A) (B)
4.020%, 06/04/98 .................. 3,300 3,300
Fairfax County, Public Improvements,
Ser B, GO (B)
6.000%, 06/01/98 .................. 2,410 2,410
Fredericksburg, Industrial Development
Authority, Hospital Facility, RB,
AMBAC (A)
4.020%, 06/04/98 .................. 4,495 4,495
King George County, Industrial
Development Authority, Birchwood
Power Partners, Ser B, RB (A) (B)
4.100%, 06/01/98 .................. 5,200 5,200
Louisa County, Industrial Development
Authority, RB (A) (B)
3.900%, 06/04/98 .................. 2,000 2,000
Petersburg, Hospital Authority,
Southside Regional Project, RB (A) (B)
4.000%, 06/01/98 .................. 3,600 3,600
Pulaski County, Industrial Development
Authority, Pulaski Furniture,
Ser A, RB (A) (B)
3.900%, 06/03/98 .................. 4,219 4,219
Richmond, Redevelopment &
Housing Authority, Multi Family
Housing, RB (A)
4.100%, 06/04/98 .................. 9,000 9,000
Virginia Polytechnic Institute & State
University, RB (A) (B)
4.090%, 06/04/98 .................. 3,475 3,475
6
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
TAX-FREE MONEY FUND (concluded)
Face
Amount Value
(000) (000)
------ ------
VIRGINIA (continued)
Virginia Port Authority Facility,
AMT, RB, MBIA (A)
4.040%, 06/04/98 .................. $9,100 $ 9,100
Virginia State Housing Development
Authority, Ser C, RB (B)
3.800%, 06/10/98 .................. 10,000 10,000
Virginia State Public Schools
Authority, School Equipment
Financing Issue V, RB
3.600%, 04/01/99 .................. 5,000 5,000
York County, TECP (B)
3.600%, 09/11/98 .................. 8,800 8,800
- ---------------------------------------------------------
70,599
- ---------------------------------------------------------
Total Municipal Bonds
(Cost $190,047) ............... 190,047
- ---------------------------------------------------------
CASH EQUIVALENTS (5.0%)
Financial Square Tax Free Portfolio .. 5,267 5,267
SEI Institutional Tax Free Portfolio . 4,925 4,925
- ---------------------------------------------------------
Total Cash Equivalents
(Cost $10,192) ................ 10,192
- ---------------------------------------------------------
Total Investments (99.1%)
(Cost $200,239) ............... 200,239
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.9%) ...... 1,865
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .9 billion shares
authorized) based on 193,922,234
outstanding shares .......................... 193,922
Portfolio Shares of Investor Class A
($.001 par value -- .1 billion shares
authorized) based on 8,181,366
outstanding shares .......................... 8,181
Undistributed net investment income ........... 10
Accumulated net realized loss on investments .. (9)
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $202,104
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($193,922,597 / 193,922,234
SHARES OUTSTANDING) ........................... $1.00
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
($8,181,496 / 8,181,366
SHARES OUTSTANDING) ........................... $1.00
=========================================================
(A) Adjustable Rate Security--The rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1998. 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.
AMT--Alternative Minimum Tax
AMBAC--American Municipal Bond Assurance Corporation
FGIC--Financial Guaranty Insurance Company
FSA--Financial Securities Assurance
GO--General Obligation Bond
MBIA--Municipal Bond Insurance Association
RB--Revenue Bond
TECP--Tax Exempt Commercial Paper
Ser--Series
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
LIMITED TERM BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATION (3.9%)
U.S. Treasury Note
8.000%, 05/15/01 .................. $ 3,000 $ 3,197
- ---------------------------------------------------------
Total U.S. Treasury Obligation
(Cost $3,174) ................. 3,197
- ---------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (7.9%)
FFCB MTN
7.125%, 06/01/01 .................. 1,000 1,038
6.470%, 03/20/02 .................. 1,155 1,155
8.600%, 05/30/06 .................. 1,000 1,079
FNMA MTN
6.610%, 03/24/99 .................. 1,750 1,764
6.310%, 11/02/00 .................. 500 500
6.250%, 01/14/04 .................. 1,000 1,000
- ---------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $6,455) ................. 6,536
- ---------------------------------------------------------
U.S. AGENCY MORTGAGE BACKED OBLIGATIONS (41.3%)
FHLMC Pool E00412
7.000%, 01/01/11 .................. 1,629 1,662
FHLMC Pool G10664
7.000%, 02/01/12 .................. 4,399 4,489
FNMA Pool 250820
7.000%, 01/01/27 .................. 2,435 2,469
FNMA REMIC 1992-199 A
5.250%, 11/25/99 .................. 307 306
FNMA REMIC 1996-30 PC
7.000%, 11/25/20 .................. 2,600 2,657
FNMA REMIC 1998-8 PB
6.250%, 06/18/19 .................. 2,575 2,594
FNMA TBA
6.500%, 06/01/13 .................. 7,700 7,741
7.500%, 06/10/28 .................. 10,000 10,263
GNMA Pool 207206
9.750%, 03/15/99 .................. 3 3
GNMA Pool 780332
8.000%, 11/15/09 .................. 1,843 1,912
- ---------------------------------------------------------
Total U.S. Agency Mortgage Backed Obligations
(Cost $33,922) ................ 34,096
- ---------------------------------------------------------
CORPORATE OBLIGATIONS (28.4%)
AGRICULTURE (2.4%)
Alcan Aluminum
5.875%, 04/01/00 .................. 2,000 1,998
- ---------------------------------------------------------
BANKS (4.9%)
Capital One Bank MTN
6.830%, 05/17/99 .................. 2,000 2,008
Popular North America
6.625%, 10/27/02 .................. 2,000 2,023
- ---------------------------------------------------------
4,031
- ---------------------------------------------------------
BUILDING & CONSTRUCTION SUPPLIES (2.5%)
Penn Central
9.750%, 08/01/99 .................. 2,000 2,078
- ---------------------------------------------------------
Face Market
Amount Value
(000) (000)
------ ------
COMMUNICATIONS EQUIPMENT (3.2%)
US Cellular, Callable 08/15/04 @ 100
7.250%, 08/15/07 .................. $2,525 $ 2,623
- ---------------------------------------------------------
ELECTRICAL SERVICES (1.6%)
Ohio Edison
6.875%, 09/15/99 .................. 1,300 1,308
- ---------------------------------------------------------
FINANCIAL SERVICES (4.6%)
Macsaver Financial Services
7.875%, 08/01/03 .................. 3,000 3,075
Sears Roebuck Acceptance
6.000%, 03/20/03 .................. 745 738
- ---------------------------------------------------------
3,813
- ---------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (2.6%)
United Dominion Realty
7.250%, 01/15/07 .................. 2,000 2,100
- ---------------------------------------------------------
RECREATIONAL PRODUCTS & SERVICES (2.4%)
Walt Disney
5.600%, 04/17/00 .................. 2,010 2,002
- ---------------------------------------------------------
SECURITY BROKERAGE/DEALERS (4.2%)
Jefferies Group, Callable 05/01/99 @ 103
8.875%, 05/01/04 .................. 2,000 2,150
Salomon Brothers
7.125%, 08/01/99 .................. 1,300 1,319
- ---------------------------------------------------------
3,469
- ---------------------------------------------------------
Total Corporate Obligations
(Cost $22,997) ................ 23,422
- ---------------------------------------------------------
ASSET BACKED SECURITIES (13.7%)
AUTOMOTIVE (0.6%)
Chase Manhattan Grantor Trust,
Ser 1995-B A
5.900%, 11/15/01 .................. 423 423
Premier Auto Trust, Ser 1993-5 A2
4.220%, 03/02/99 .................. 55 55
- ---------------------------------------------------------
478
- ---------------------------------------------------------
CREDIT CARDS (8.9%)
Advanta Credit Card Master Trust,
Ser 1995-F A1
6.050%, 08/01/03 .................. 1,000 1,003
American Express Master Trust,
Ser 1992-2 A
6.600%, 05/15/00 .................. 2,000 2,015
Chase Credit Card Master Trust,
Ser 1997-5 A
6.194%, 08/15/05 .................. 1,280 1,291
Discover Card Master Trust I,
Ser 1998-4 A
5.750%, 10/16/03 .................. 1,990 1,984
8
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
LIMITED TERM BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
CREDIT CARDS (continued)
Spiegel Master Trust, Ser 1995-A A
7.500%, 09/15/04 .................. $ 1,000 $ 1,030
- ---------------------------------------------------------
7,323
- ---------------------------------------------------------
HOME EQUITY (3.5%)
CoreStates Home Equity Trust,
Ser 1994-1 A
6.650%, 05/15/09 .................. 884 889
EQCC Home Equity Loan Trust,
Ser 1994-1 A
5.800%, 03/15/09 .................. 833 825
Equivantage, Ser 1996-1 A
6.550%, 10/25/25 .................. 1,021 1,026
Green Tree Financial, Ser 1995-7 A2
6.150%, 11/15/26 .................. 187 188
- ---------------------------------------------------------
2,928
- ---------------------------------------------------------
MOTOR HOMES (0.7%)
CIT RV Grantor Trust, Ser 1994-A A
4.900%, 07/15/09 .................. 596 586
- ---------------------------------------------------------
Total Asset Backed Securities
(Cost $11,260) ................ 11,315
- ---------------------------------------------------------
MORTGAGE BACKED SECURITIES (2.2%)
Merrill Lynch Mortgage Investors,
Ser 1998-C2 D (A)
7.116%, 06/01/98 .................. 1,800 1,815
- ---------------------------------------------------------
Total Mortgage Backed Securities
(Cost $1,813) ................. 1,815
- ---------------------------------------------------------
CASH EQUIVALENT (4.8%)
Aim Liquid Assets Portfolio .......... 3,981 3,981
- ---------------------------------------------------------
Total Cash Equivalent
(Cost $3,981) ................. 3,981
- ---------------------------------------------------------
REPURCHASE AGREEMENT (19.2%)
J.P. Morgan
5.57%, dated 05/29/98, matures
06/01/98, repurchase price
$15,828,738 (collateralized by
various GNMA obligations: total
market value: $16,137,823) ......... 15,821 15,821
- ---------------------------------------------------------
Total Repurchase Agreement
(Cost $15,821) ................ 15,821
- ---------------------------------------------------------
Total Investments (121.4%)
(Cost $99,423) ................ 100,183
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-21.4%) .... (17,660)
- ---------------------------------------------------------
Market
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 1.4 billion shares
authorized) based on
8,305,774 outstanding shares ................ $83,647
Overdistributed net investment income ......... (6)
Accumulated net realized loss on investments .. (1,878)
Net unrealized appreciation on investments .... 760
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $82,523
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($82,523,152 / 8,305,774
SHARES OUTSTANDING) ........................... $9.94
=========================================================
(A) Adjustable Rate Security--The rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1998. 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.
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
TBA--To Be Announced
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (6.3%)
U.S. Treasury Bond
6.625%, 02/15/27 .................. $ 3,000 $ 3,312
U.S. Treasury Notes
8.000%, 08/15/99 .................. 3,700 3,805
8.000%, 05/15/01 .................. 2,000 2,131
5.750%, 08/15/03 .................. 10,560 10,644
- ---------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $19,604) ................ 19,892
- ---------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (2.3%)
FFCB MTN
6.470%, 03/20/02 .................. 5,589 5,588
International Bank Reconstruction &
Development MTN
9.100%, 06/01/99 .................. 1,500 1,549
- ---------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $7,077) ................. 7,137
- ---------------------------------------------------------
U.S. AGENCY MORTGAGE BACKED OBLIGATIONS (51.8%)
FHLMC Pool E00412
7.000%, 01/01/11 .................. 2,027 2,068
FHLMC Pool G10664
7.000%, 02/01/12 .................. 11,379 11,611
FHLMC REMIC 1459 H
7.000%, 07/15/19 .................. 10,087 10,236
FHLMC REMIC 1726 B
6.750%, 11/15/04 .................. 7,000 7,095
FHLMC REMIC 1934 E
6.500%, 02/15/12 .................. 9,471 9,712
FNMA Pool 250820
7.000%, 01/01/27 .................. 9,694 9,831
FNMA Pool 251502
6.500%, 02/01/13 .................. 411 413
FNMA Pool 251571
6.500%, 02/01/13 .................. 5,026 5,053
FNMA Pool 395051
6.500%, 02/01/13 .................. 1,959 1,970
FNMA Pool 407886
6.500%, 02/01/13 .................. 994 999
FNMA Pool 407890
6.500%, 02/01/13 .................. 387 389
FNMA Pool 409201
6.500%, 01/01/13 .................. 976 982
FNMA Pool 413994
6.500%, 01/01/13 .................. 980 985
FNMA Pool 414887
6.500%, 02/01/13 .................. 1,921 1,931
FNMA Pool 447023
6.500%, 02/01/13 .................. 1,912 1,922
FNMA REMIC 1993-127 K
6.500%, 10/25/21 .................. 4,500 4,521
FNMA REMIC 1997-42 ZC
6.500%, 07/18/27 .................. 12,230 11,646
Face Market
Amount Value
(000) (000)
------ ------
FNMA REMIC 1997-63 PC
6.500%, 03/18/26 .................. $ 9,160 $ 9,297
FNMA REMIC 1998-8 PB
6.250%, 06/18/19 .................. 8,530 8,593
FNMA REMIC 1998-17 TC
6.250%, 08/18/21 .................. 7,035 7,047
FNMA TBA
7.500%, 06/10/28 .................. 11,000 11,289
GNMA Pool 207206
9.750%, 03/15/99 .................. 4 4
GNMA Pool 376345
6.500%, 12/15/23 .................. 6,926 6,893
GNMA Pool 433594
6.500%, 02/15/28 .................. 192 191
GNMA Pool 448095
6.500%, 02/15/28 .................. 887 883
GNMA Pool 450663
6.500%, 03/15/28 .................. 1,001 996
GNMA Pool 460007
6.500%, 03/15/28 .................. 696 693
GNMA Pool 460253
6.500%, 03/15/28 .................. 121 120
GNMA Pool 460254
6.500%, 03/15/28 .................. 1,996 1,987
GNMA Pool 460282
6.500%, 03/15/28 .................. 127 127
GNMA Pool 460484
6.500%, 03/15/28 .................. 1,512 1,505
GNMA Pool 463640
6.500%, 03/15/28 .................. 1,157 1,152
GNMA Pool 463641
6.500%, 03/15/28 .................. 1,997 1,988
GNMA Pool 465387
6.500%, 02/15/28 .................. 424 422
GNMA Pool 780332
8.000%, 11/15/09 .................. 7,899 8,198
GNMA TBA
6.500%, 06/18/28 .................. 2,620 2,604
7.000%, 06/18/28 .................. 18,150 18,405
- ---------------------------------------------------------
Total U.S. Agency Mortgage Backed Obligations
(Cost $161,894) ............... 163,758
- ---------------------------------------------------------
CORPORATE OBLIGATIONS (24.7%)
AUTOMOTIVE (2.3%)
Ford Motor
7.500%, 11/15/99 .................. 1,000 1,022
General Motors
7.000%, 06/15/03 .................. 6,000 6,225
- ---------------------------------------------------------
7,247
- ---------------------------------------------------------
BANKS (3.4%)
Capital One Bank MTN
6.830%, 05/17/99 .................. 2,300 2,309
10
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND (continued)
Face Market
Amount Value
(000) (000)
------ ------
BANKS (continued)
Central Fidelity
8.150%, 11/15/02 .................. $3,000 $ 3,217
NationsBank
6.875%, 02/15/05 .................. 5,000 5,162
- ---------------------------------------------------------
10,688
- ---------------------------------------------------------
FINANCIAL SERVICES (6.0%)
American Financial Group
7.125%, 12/15/07 .................. 7,000 7,123
Macsaver Financial Services
7.875%, 08/01/03 .................. 9,550 9,789
Sears Roebuck Acceptance
6.000%, 03/20/03 .................. 2,000 1,983
- ---------------------------------------------------------
18,895
- ---------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (0.3%)
Philip Morris
7.125%, 08/15/02 .................. 1,000 1,029
- ---------------------------------------------------------
INSURANCE (2.5%)
Hartford Life
7.100%, 06/15/07 .................. 7,500 7,800
- ---------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (0.5%)
Occidental Petroleum
8.500%, 11/09/01 .................. 1,600 1,714
- ---------------------------------------------------------
RECREATIONAL PRODUCTS & SERVICES (2.4%)
Walt Disney
5.600%, 04/17/00 .................. 7,770 7,741
- ---------------------------------------------------------
SECURITY BROKERAGE/DEALERS (5.7%)
Jefferies Group, Callable 05/01/99 @ 103
8.875%, 05/01/04 .................. 7,000 7,525
Lehman Brothers
10.000%, 05/15/99 ................. 3,000 3,110
PaineWebber
7.625%, 10/15/08 .................. 7,000 7,490
- ---------------------------------------------------------
18,125
- ---------------------------------------------------------
UTILITIES, ELECTRIC, & GAS (1.6%)
Gulf States Utilities
6.770%, 08/01/05 .................. 5,000 5,006
- ---------------------------------------------------------
Total Corporate Obligations
(Cost $76,295) ................ 78,245
- ---------------------------------------------------------
ASSET BACKED SECURITIES (8.5%)
American Express Master Trust,
Ser 1992-2 A
6.600%, 05/15/00 .................. 6,350 6,396
Chase Credit Card Master Trust,
Ser 1997-5 A
6.194%, 08/15/05 .................. 7,215 7,277
Face Market
Amount Value
(000) (000)
------ ------
CIT RV Grantor Trust, Ser 1994-A A
4.900%, 07/15/09 .................. $ 402 $ 395
Discover Card Master Trust I,
Ser 1998-4 A
5.750%, 10/16/03 .................. 8,190 8,167
EQCC Home Equity Loan Trust,
Ser 1994-1 A
5.800%, 03/15/09 .................. 687 680
Green Tree Financial, Ser 1995-7 A2
6.150%, 11/15/26 .................. 375 376
Green Tree Financial, Ser 1995-9 A2
6.000%, 01/15/27 .................. 461 461
Olympic Automobile Receivables Trust,
Ser 1995-D A4
6.050%, 11/15/00 .................. 3,056 3,059
- ---------------------------------------------------------
Total Asset Backed Securities
(Cost $26,789) ................ 26,811
- ---------------------------------------------------------
MORTGAGE BACKED SECURITIES (2.4%)
Merrill Lynch Mortgage Investors,
Ser 1998-C1 A1
6.310%, 11/15/26 .................. 428 429
Merrill Lynch Mortgage Investors,
Ser 1998-C2 D (A)
7.116%, 06/01/98 ................. 7,100 7,161
- ---------------------------------------------------------
Total Mortgage Backed Securities
(Cost $7,579) ................. 7,590
- ---------------------------------------------------------
CASH EQUIVALENT (4.8%)
Aim Liquid Assets Portfolio .......... 15,290 15,290
- ---------------------------------------------------------
Total Cash Equivalent
(Cost $15,290) ................ 15,290
- ---------------------------------------------------------
REPURCHASE AGREEMENT (9.0%)
J.P. Morgan
5.57%, dated 05/29/98, matures
06/01/98, repurchase price
$28,470,831 (collateralized by various
GNMA obligations: total market
value: $29,026,775) ................ 28,458 28,458
- ---------------------------------------------------------
Total Repurchase Agreement
(Cost $28,458) ................ 28,458
- ---------------------------------------------------------
Total Investments (109.8%)
(Cost $342,986) ............... 347,181
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-9.8%) ..... (31,101)
- ---------------------------------------------------------
11
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND (concluded)
Market
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 1.4 billion shares
authorized) based on 31,229,251
outstanding shares .......................... $306,537
Portfolio Shares of Investor Class A
($.001 par value --.1 billion shares
authorized) based on 280,623
outstanding shares .......................... 2,788
Overdistributed net investment income ......... (141)
Accumulated net realized gain on investments .. 2,701
Net unrealized appreciation on investments .... 4,195
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $316,080
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($313,263,964 / 31,229,251
SHARES OUTSTANDING) ........................... $10.03
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
($2,815,756 / 280,623
SHARES OUTSTANDING) ........................... $10.03
- ---------------------------------------------------------
OFFERING PRICE PER SHARE -- INVESTOR CLASS A
($10.03 / 97.0%) .............................. $10.34
=========================================================
(A) Adjustable Rate Security--The rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1998. 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.
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
TBA--To Be Announced
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
U.S. TREASURY OBLIGATIONS (17.3%)
U.S. Treasury Bond
6.625%, 02/15/27 .................. $4,960 $ 5,476
U.S. Treasury Note
8.000%, 05/15/01 .................. 3,000 3,197
- ---------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $8,548) ................. 8,673
- ---------------------------------------------------------
U.S. AGENCY MORTGAGE BACKED OBLIGATIONS (53.4%)
FHLMC Pool E00412
7.000%, 01/01/11 .................. 400 408
FHLMC Pool E66605
6.500%, 03/01/12 .................. 3,243 3,264
FHLMC Pool G10664
7.000%, 02/01/12 .................. 1,354 1,381
FHLMC REMIC 1934 E
6.500%, 02/15/12 .................. 1,894 1,942
FNMA Pool 250820
7.000%, 01/01/27 .................. 1,217 1,235
FNMA REMIC 1996-30 PC
7.000%, 11/25/20 .................. 2,000 2,044
FNMA REMIC 1997-42 ZC
6.500%, 07/18/27 .................. 1,486 1,415
FNMA REMIC 1997-63 PC
6.500%, 03/18/26 .................. 1,140 1,157
FNMA REMIC 1998-8 PB
6.250%, 06/18/19 .................. 1,140 1,148
FNMA REMIC 1998-17 TC
6.250%, 08/18/21 .................. 910 912
FNMA TBA
6.500%, 06/01/13 .................. 1,900 1,910
GNMA Pool 352020
6.500%, 11/15/23 .................. 901 897
GNMA Pool 465677
6.500%, 03/15/28 .................. 149 149
GNMA Pool 780332
8.000%, 11/15/09 .................. 1,192 1,237
GNMA Pool 780429
7.500%, 09/15/26 .................. 899 930
GNMA TBA
7.000%, 05/20/28 .................. 3,300 3,346
6.500%, 06/18/28 .................. 1,540 1,530
7.000%, 06/18/28 .................. 1,875 1,901
- ---------------------------------------------------------
Total U.S. Agency Mortgage
Backed Obligations
(Cost $26,522) ................ 26,806
- ---------------------------------------------------------
CORPORATE OBLIGATIONS (13.2%)
BANKS (0.5%)
Capital One Bank MTN
6.830%, 05/17/99 .................. 250 251
- ---------------------------------------------------------
COMMUNICATIONS EQUIPMENT (2.1%)
U.S. Cellular, Callable 08/15/04 @ 100
7.250%, 08/15/07 .................. 1,000 1,039
- ---------------------------------------------------------
Face Market
Amount Value
(000) (000)
------ ------
FINANCIAL SERVICES (2.7%)
Macsaver Financial Services
7.400%, 02/15/02 .................. $1,000 $ 1,001
Sears Roebuck Acceptance
6.000%, 03/20/03 .................. 365 362
- ---------------------------------------------------------
1,363
- ---------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (1.1%)
Philip Morris
7.625%, 05/15/02 .................. 550 575
- ---------------------------------------------------------
INSURANCE (2.3%)
Hartford Life
7.100%, 06/15/07 .................. 1,100 1,144
- ---------------------------------------------------------
RECREATIONAL PRODUCTS & SERVICES (2.4%)
Walt Disney
5.600%, 04/17/00 .................. 1,205 1,201
- ---------------------------------------------------------
SECURITY BROKERAGE/DEALERS (2.1%)
Jefferies Group, Callable 05/01/99 @ 103
8.875%, 05/01/04 .................. 1,000 1,075
- ---------------------------------------------------------
Total Corporate Obligations
(Cost $6,496) ................. 6,648
- ---------------------------------------------------------
ASSET BACKED SECURITIES (7.3%)
AFG Receivables Trust, Ser 1997-A A
6.350%, 10/31/02 .................. 651 653
Chase Credit Card Master Trust,
Ser 1997-5 A
6.194%, 08/15/05 .................. 845 852
Discover Card Master Trust I,
Ser 1998-4 A
5.750%, 10/16/03 .................. 1,180 1,177
EQCC Home Equity Loan Trust,
Ser 1994-1 A
5.800%, 03/15/09 .................. 86 85
Green Tree Financial, Ser 1995-9 A2
6.000%, 01/15/27 .................. 138 138
Honda Auto Receivables Grantor Trust,
Ser 1995-A A
6.200%, 12/15/00 .................. 135 135
Olympic Automobile Receivables
Trust, Ser 1995-D A4
6.050%, 11/15/00 .................. 600 601
- ---------------------------------------------------------
Total Asset Backed Securities
(Cost $3,642) ................. 3,641
- ---------------------------------------------------------
MORTGAGE BACKED SECURITIES (2.2%)
Merrill Lynch Mortgage Investors,
Ser 1998-C2 D (A)
7.116%, 06/01/98 .................. 1,100 1,109
- ---------------------------------------------------------
Total Mortgage Backed Securities
(Cost $1,108) ................. 1,109
- ---------------------------------------------------------
13
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
CASH EQUIVALENT (4.7%)
Aim Liquid Assets Portfolio .......... $2,368 $ 2,368
- ---------------------------------------------------------
Total Cash Equivalent
(Cost $2,368) ................. 2,368
- ---------------------------------------------------------
REPURCHASE AGREEMENT (19.2%)
J.P. Morgan
5.57%, dated 05/29/98, matures
06/01/98, repurchase price
$9,636,211 (collateralized by GNMA
obligation: total market
value $9,824,375) .................. 9,632 9,632
- ---------------------------------------------------------
Total Repurchase Agreement
(Cost $9,632) ................. 9,632
- ---------------------------------------------------------
Total Investments (117.3%)
(Cost $58,316) ................ 58,877
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-17.3%) .... (8,664)
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .75 billion shares
authorized) based on 4,638,022
outstanding shares .......................... 47,506
Portfolio Shares of Investor Class B
($.001 par value -- .125 billion shares
authorized) based on 153,665
outstanding shares .......................... 1,593
Undistributed net investment income ........... 2
Accumulated net realized gain on investments .. 551
Net unrealized appreciation on investments .... 561
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $50,213
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($48,598,081 / 4,638,022
SHARES OUTSTANDING) ........................... $10.48
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B
($1,614,882 / 153,665
SHARES OUTSTANDING) ........................... $10.51
=========================================================
(A) Adjustable Rate Security--The rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1998. 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.
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
TBA--To Be Announced
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (98.3%)
VIRGINIA (98.3%)
Abingdon, Industrial Development
Authority, Johnston Memorial Hospital
Project, RB, Callable 07/01/2008 @102
5.250%, 07/01/16 .................. $2,000 $ 2,000
Arlington County, Refunding Bond,
Public Improvements, GO, Callable
10/01/2008 @ 101
5.000%, 10/01/11 .................. 3,220 3,329
Chesapeake Bay, Bridge & Tunnel
Authority, RB, Callable
07/01/05 @ 102 MBIA
5.000%, 07/01/22 .................. 1,000 984
Chesapeake Bay, Bridge & Tunnel
Authority, RB, Prerefunded
07/01/2001 @ 102 MBIA
6.375%, 07/01/22 .................. 7,000 7,604
Chesapeake, Public Improvements, GO
5.800%, 08/01/02 .................. 2,000 2,125
Chesapeake, Hospital Authority,
General Hospital Project, RB,
Callable 07/01/00 @ 102
8.200%, 07/01/05 .................. 1,000 1,089
Chesapeake, Refunding Bond, GO
5.400%, 12/01/08 .................. 2,500 2,694
Chesterfield County, Health Center
Community Project, RB,
Callable 12/01/06 @ 102 (B)
5.875%, 12/01/21 .................. 500 529
Chesterfield County, Public Improvements,
Ser A, GO, Callable 01/01/08 @ 100 (B)
4.400%, 01/01/09 .................. 2,000 1,990
4.700%, 01/01/12 .................. 3,215 3,203
Chesterfield County, Refunding Bond, GO
5.650%, 07/15/00 .................. 3,000 3,109
Fairfax County, Economic Development
Authority, Ogden Martin Systems Project,
Ser A, AMT, RB, Callable 02/01/99 @ 103
7.750%, 02/01/11 .................. 1,000 1,052
Fairfax County, School & Transit
Improvements, Ser B, GO, Callable
06/01/01 @ 102 (B)
5.200%, 06/01/13 .................. 5,000 5,156
Fairfax County, Industrial Development
Authority, Inova Health System Project,
RB, Callable 08/15/06 @ 102
5.300%, 08/15/07 .................. 1,500 1,577
Fairfax County, Industrial Development
Authority, Inova Health System Project,
Ser A, RB, Callable 02/15/08 @ 101
5.000%, 08/15/10 .................. 2,890 2,937
Face Market
Amount Value
(000) (000)
------ ------
Fairfax County, Sewer Authority, RB,
Callable 11/15/03 @ 102 AMBAC
5.500%, 11/15/09 .................. $3,000 $ 3,187
Fredericksburg, Industrial Development
Authority, Hospital Facilities Project, RB,
Callable 06/15/07 @ 102 AMBAC
5.250%, 06/15/16 .................. 5,000 5,050
5.250%, 06/15/23 .................. 2,000 2,012
Hampton Roads Sanitation District,
Wastewater Authority, Capital
Improvements, RB,
Callable 10/01/03 @ 102
4.900%, 10/01/06 .................. 2,000 2,065
Harrisonburg, Industrial Development
Authority, Rockingham Memorial
Hospital Project, RB,
Callable 12/01/02 @ 102 MBIA
5.750%, 12/01/13 .................. 3,000 3,169
Harrisonburg, Refunding Bond, GO
6.000%, 08/01/99 .................. 1,000 1,025
Henrico County, Industrial
Development Authority, Browning
Ferris Project, RB, Mandatory
Put 12/01/05 @ 100 (A)
5.300%, 12/01/11 .................. 1,000 1,045
Henrico County, Industrial Development
Authority, Residential and Health Care
Facility, Refunding Mortgage, Our Lady
of Hope, RB, Callable 07/01/03 @ 102 (B)
6.150%, 07/01/26 .................. 2,000 2,025
Henrico County, Industrial Development
Authority, Westminister-Cantebury
Project, RB, Callable 06/25/98 @ 101
7.300%, 10/01/99 .................. 1,060 1,072
Henrico County, Industrial Development
Authority, Government Projects, RB,
Callable 06/01/06 @ 102
5.150%, 06/01/07 .................. 2,500 2,634
Henry County, Public Improvements,
GO, Callable 07/15/04 @ 102
6.000%, 07/15/14 .................. 1,000 1,075
James Madison University,
Refunding Bond, University & College
Improvements, RB, Callable 06/01/03
@ 102 AMBAC
5.375%, 06/01/09 .................. 500 526
Loudoun County, Sanitation Authority,
Water & Sewer Project, RB,
Callable 01/01/03 @ 102 FGIC
6.100%, 01/01/04 .................. 1,250 1,366
Loudoun County, Sanitation Authority,
Water & Sewer Project, RB,
Callable 01/01/07 @ 102 FGIC
5.125%, 01/01/26 .................. 3,250 3,238
15
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (continued)
Face Market
Amount Value
(000) (000)
------ ------
VIRGINIA (continued)
Loudoun County, Sanitation Authority,
Water & Sewer Project, RB FGIC
5.900%, 01/01/02 .................. $1,000 $ 1,060
Loudoun County, School &
Public Improvements, Ser A, GO,
Callable 08/01/07 @ 102 (B)
5.000%, 08/01/17 .................. 2,000 1,985
Lynchburg, Refunding Bond, GO,
Callable 04/01/03 @ 102
5.250%, 04/01/08 .................. 2,000 2,090
Newport News, Public Housing
Authority, Newport-Oxford
Project, RB, (A) (B)
3.900%, 06/04/98 .................. 1,150 1,150
Newport News, Recreational
Facility Improvements, Ser A, GO,
Callable 11/01/00 @ 100.25
6.200%, 11/01/01 .................. 1,000 1,052
Newport News, Recreational Facility
Improvements, Ser A, GO,
Callable 07/01/05 @ 102 MBIA
5.500%, 07/01/12 .................. 2,500 2,641
Newport News, Refunding &
Improvement Bond, Ser B, GO,
Callable 07/01/99 @ 101.50
5.700%, 07/01/05 .................. 2,000 2,064
Newport News, Water, Utility & Public
Improvements, GO,
Callable 01/15/07 @ 102
5.250%, 01/15/14 .................. 3,530 3,614
Norfolk, Capital Improvements, GO,
Callable 06/01/07 @ 101 FGIC
5.375%, 06/01/09 .................. 1,000 1,062
Norfolk, Industrial Development
Authority, Bon Secours Health Project,
RB, Callable 08/15/07 @ 102 MBIA
5.250%, 08/15/26 .................. 4,200 4,216
Norfolk, Industrial Development
Authority, Children's Hospital Project,
RB AMBAC
6.900%, 06/01/06 .................. 1,000 1,162
Norfolk, Industrial Development
Authority, Children's Hospital Project,
RB, Callable 06/01/04 @ 102 AMBAC
5.100%, 06/01/07 .................. 1,000 1,039
Norfolk, Industrial Development
Authority, Public Health Center Project,
RB, Callable 09/15/06 @ 102
5.625%, 09/15/17 .................. 1,600 1,670
Norfolk, Industrial Development
Authority, Sentara Hospital Project,
Ser A, RB, Callable 11/01/04 @ 102
4.900%, 11/01/07 .................. 2,500 2,541
5.000%, 11/01/08 .................. 2,500 2,537
Norfolk, Redevelopment & Housing
Authority, Tidewater Community
College Campus Project, RB,
Callable 11/01/05 @ 102
5.800%, 11/01/08 .................. 700 768
Face Market
Amount Value
(000) (000)
------ ------
Norfolk, Refunding & Improvement
Bond, Ser A, GO
5.100%, 02/01/00 .................. $4,000 $ 4,070
Peninsula Ports, Hospital Authority,
Mary Immaculate Project, RB
8.000%, 08/01/99 .................. 515 530
Peninsula Ports, Industrial Development
Authority, Olde Hampton Hotel Project,
RB, Mandatory Put 07/01/99 @ 100 (B)
4.875%, 07/01/16 .................. 490 490
Peumansend Creek, Regional Jail
Authority, Grant Anticipation Note,
RB, Callable 04/01/99 @ 100
4.550%, 04/01/00 .................. 5,000 5,025
Portsmouth, Refunding Bond, GO,
Callable 08/01/03 @ 102
5.450%, 08/01/07 .................. 2,000 2,115
Portsmouth, Public Improvements, GO,
Prerefunded 08/01/00 @ 102
6.750%, 08/01/04 .................. 1,500 1,612
Prince William County, Park Authority,
Recreational Facility Improvements, RB
5.500%, 10/15/99 .................. 500 510
5.800%, 10/15/01 .................. 500 520
Prince William County, Park Authority,
Recreational Facility Improvements,
RB, Callable 10/15/04 @ 102
6.200%, 10/15/05 .................. 500 532
Prince William County, Refunding Bond,
Ser C, RB, Callable 08/01/03 @ 102 (B)
5.000%, 08/01/07 .................. 5,000 5,175
Prince William County, Water & Sewer
Authority, Water & Sewer Improvements,
RB, Prerefunded 07/01/01 @ 102 FGIC
6.500%, 07/01/21 .................. 1,000 1,090
Richmond, Metropolitan Expressway
Authority, Ser A, RB,
Callable 07/15/02 @ 102 FGIC
5.900%, 07/15/03 .................. 1,500 1,614
Richmond, Public Improvements,
Ser A, GO
6.100%, 01/15/01 .................. 2,750 2,884
Richmond, Public Improvements,
Ser A, GO, Callable 01/15/05 @ 102
5.300%, 01/15/09 .................. 1,500 1,573
Richmond, Public Utility, Ser A, RB
5.250%, 01/15/06 .................. 2,200 2,310
Richmond, Redevelopment & Housing
Authority, Richmeade Project,
AMT, RB (A)
4.675%, 06/25/98 .................. 1,500 1,500
Roanoke, Industrial Development
Authority, Carilion Health System
Project, Ser B, RB (A)
4.000%, 06/01/98 .................. 2,500 2,500
Roanoke Valley, Solid Waste System
Authority, Resource Recovery
Improvements, RB
5.400%, 09/01/02 .................. 1,450 1,504
16
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (continued)
Face Market
Amount Value
(000) (000)
------ ------
VIRGINIA (continued)
Roanoke, Industrial Development
Authority, Roanoke Memorial Hospital
Project, Carilion Health Systems, RB
6.900%, 07/01/99 .................. $1,000 $ 1,030
Roanoke, Industrial Development
Authority, Roanoke Memorial
Hospital Project, Ser B, RB,
Callable 07/01/02 @ 102
5.800%, 07/01/05 .................. 500 529
5.900%, 07/01/06 .................. 2,500 2,659
Roanoke, Public Improvements, GO
4.500%, 08/01/04 .................. 1,500 1,522
4.900%, 02/01/06 .................. 1,000 1,034
Roanoke, Public Improvements, GO,
Callable 02/01/06 @ 102
5.000%, 02/01/12 .................. 3,165 3,209
Southeastern Public Service Authority,
Ser A, RB, MBIA
5.150%, 07/01/09 .................. 3,000 3,165
Spotsylvania County, Refunding Bond,
Special Assessments, GO, FSA
4.500%, 07/15/09 .................. 1,375 1,368
Suffolk, Refunding & Improvement
Bond, GO
5.200%, 08/01/02 .................. 1,500 1,558
Suffolk, Refunding Bond, GO,
Callable 08/01/03 @ 102
5.600%, 08/01/06 .................. 2,000 2,140
5.700%, 08/01/07 .................. 2,000 2,145
Tazewell County, Industrial Development
Authority, Courthouse Project, RB,
Callable 01/01/07 @ 102 MBIA
5.300%, 01/01/27 .................. 1,000 1,011
University of Virginia, Hospital Authority,
Ser E, RB, Callable 06/01/99 @ 100
6.000%, 06/01/13 .................. 1,000 1,017
University of Virginia, Hospital Authority,
Ser E, RB, Callable 06/01/99 @ 102
6.750%, 06/01/01 .................. 2,500 2,612
6.900%, 06/01/04 .................. 2,000 2,092
Upper Occoquan, Sewer Authority,
Regional Sewer Project, Ser A,
RB, Callable 07/01/06 @ 102 MBIA
5.000%, 07/01/25 .................. 4,500 4,404
Virginia Beach, Judicial Center Project,
Certificate of Participation,
Prerefunded 09/01/00 @ 102 FGIC
7.000%, 09/01/01 .................. 1,500 1,626
Virginia Beach, Development Authority,
Residential & Health Care Facility Project,
1st Mortgage, Our Lady of Perpetual Hope,
RB, Callable 07/01/07 @102 (B)
6.050%, 07/01/20 .................. 1,500 1,539
Virginia Beach, Development Authority,
Sentara Bayside Hospital Project, RB,
Callable 11/01/01 @ 102
6.300%, 11/01/21 .................. 1,750 1,855
Virginia Beach, Highway, Recreation, &
School Improvements, Ser A, GO,
Prerefunded 03/01/01 @ 102
6.400%, 03/01/03 .................. 1,000 1,079
Face Market
Amount Value
(000) (000)
------ ------
Virginia Beach, Public Improvements,
Ser A, GO, Prerefunded
10/01/1999 @ 102
6.900%, 10/01/03 .................. $1,000 $ 1,057
Virginia Beach, Public Improvements,
Ser C, GO
6.100%, 08/01/00 .................. 1,000 1,045
Virginia Beach, Refunding Bond, GO
5.000%, 07/15/03 .................. 1,000 1,040
5.300%, 07/15/07 .................. 2,000 2,132
5.450%, 07/15/11 .................. 1,000 1,078
Virginia Beach, Refunding Bond, GO,
Prerefunded 11/01/04 @ 102 (B)
5.750%, 11/01/10 .................. 3,500 3,846
Virginia Polytechnic Institute & State
University, University & College
Improvements, Ser A, RB,
Callable 06/01/06 @ 102
5.350%, 06/01/09 .................. 2,000 2,118
Virginia State, College Building Authority,
University of Richmond Project, RB,
Callable 11/01/02 @ 102
6.250%, 11/01/12 .................. 2,000 2,173
Virginia State, College Building Authority,
University of Richmond Project, RB,
Optional Put 11/01/04 @ 100
5.550%, 11/01/19 .................. 6,500 6,979
Virginia State, Commonwealth Port Authority,
Port Fund, RB, Prerefunded
07/01/98 @ 102
8.200%, 07/01/98 .................. 1,500 1,535
Virginia State, Commonwealth Transportation
Board, Northern Transit District, RB,
Callable 05/15/07 @ 101
5.125%, 05/15/19 .................. 2,250 2,244
Virginia State, Commonwealth Transportation
Board, Oak Grave Connector Project,
Ser A, RB, Callable 05/15/07 @ 101
5.250%, 05/15/22 .................. 2,250 2,270
Virginia State, Education Loan Authority,
AMT, RB, Prerefunded to Various
Call Dates @ 100 (B)
5.550%, 09/01/10 .................. 1,800 1,883
Virginia State, Education Loan Authority,
Refunding Bond, Student Loan Program,
AMT, Ser B, RB, Escrowed to Maturity
4.850%, 09/01/01 .................. 520 531
Virginia State, Education Loan Authority,
Refunding Bond, Student Loan Program,
AMT, Ser D, RB, Escrowed to Maturity
5.600%, 03/01/03 .................. 2,500 2,638
Virginia State, Housing Development
Authority, Multi Family Housing,
Ser B, RB, Callable 01/01/00 @ 102
7.375%, 05/01/05 .................. 1,000 1,043
17
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
VIRGINIA (continued)
Virginia State, Housing Development
Authority, Commonwealth Mortgage,
Ser B, SubSer B-3, RB,
Callable 01/01/06 @ 102
6.350%, 01/01/15 .................. $3,000 $ 3,236
Virginia State, Housing Development
Authority, Multi Family Housing,
Ser C, RB, Callable 01/01/04 @ 102
5.700%, 05/01/05 .................. 1,000 1,065
Virginia State, Housing Development
Authority, Single Family Housing,
Ser C, SubSer C-4, RB,
Callable 01/01/02 @ 102
5.550%, 01/01/11 .................. 3,000 3,079
Virginia State, Housing Development
Authority, Ser C, SubSer C-8, RB,
Callable 07/01/02 @ 102
6.000%, 07/01/06 .................. 2,000 2,093
Virginia State, Housing Development
Authority, Multi Family Mortgage,
Ser I, RB, Callable 01/01/08 @ 102 (B)
5.450%, 05/01/18 .................. 2,000 2,030
Virginia State, Public Building Authority,
Ser A, RB
6.000%, 08/01/06 .................. 6,000 6,668
Virginia State, Public Building Authority,
Ser B, RB
5.600%, 08/01/01 .................. 4,000 4,175
Virginia State, Public School Authority,
Refunding Bond, RB,
Callable 01/01/02 @ 102
6.250%, 01/01/08 .................. 2,000 2,153
Virginia State, Public School Authority,
School Financing, Ser A, RB
4.300%, 08/01/05 .................. 1,500 1,502
Virginia State, Public School Authority,
Refunding Bond, Ser B, RB
5.000%, 01/01/04 .................. 2,000 2,083
Virginia State, Public School Authority,
School Improvements, Ser B, RB,
Callable 01/01/00 @ 102
5.850%, 01/01/02 .................. 1,500 1,569
Virginia State, Public School Authority,
School Financing, Ser B, RB,
Callable 01/01/03 @ 102 (B)
5.600%, 01/01/05 .................. 1,880 2,014
Virginia State, Refunding Bond, GO
5.600%, 06/01/02 .................. 4,750 5,017
Virginia State University, University
& College Improvements, Ser A, RB,
Callable 05/01/06 @ 102
5.625%, 05/01/16 .................. 2,500 2,597
Face Market
Amount Value
(000) (000)
------ ------
Winchester, Public Improvements, GO
6.050%, 03/01/00 .................. $ 500 $ 518
- ---------------------------------------------------------
246,077
- ---------------------------------------------------------
Total Municipal Bonds
(Cost $236,939) ............... 246,077
- ---------------------------------------------------------
CASH EQUIVALENT (1.4%)
Aim Tax Free Institutional Cash Reserve 3,612 3,612
- ---------------------------------------------------------
Total Cash Equivalent
(Cost $3,612) ................. 3,612
- ---------------------------------------------------------
Total Investments (99.7%)
(Cost $240,551) ............... 249,689
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.3%) ...... 668
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .75 billion shares
authorized) based on 23,317,624
outstanding shares .......................... 231,331
Portfolio Shares of Investor Class A
($.001 par value -- .25 billion shares
authorized) based on 862,272
outstanding shares .......................... 8,864
Undistributed net investment income ........... 45
Accumulated net realized gain on investments .. 979
Net unrealized appreciation on investments .... 9,138
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $250,357
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($241,430,240 / 23,317,624
SHARES OUTSTANDING) ........................... $10.35
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
($8,926,375 / 862,272
SHARES OUTSTANDING) ........................... $10.35
- ---------------------------------------------------------
OFFERING PRICE PER SHARE -- INVESTOR CLASS A
($10.35 / 96.5%) .............................. $10.73
=========================================================
(A) Adjustable Rate Security--The rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1998. 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.
AMT--Alternative Minimum Tax
AMBAC--American Municipal Bond Assurance Corporation
FGIC--Financial Guaranty Insurance Company
GO--General Obligation
MBIA--Municipal Bond Insurance Association
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, 1998 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (98.2%)
VIRGINIA (98.2%)
Albemarle County, Industrial Development
Authority, Martha Jefferson Hospital
Project, RB, Callable 10/01/03 @ 102
5.800%, 10/01/09 .................. $500 $ 521
Alexandria, Industrial Development
Authority, Episcopal High School
Project, RB, Callable 01/01/06 @ 102
5.300%, 01/01/11 .................. 500 518
Alexandria, Industrial Development
Authority, Potomac Electric Project,
Ser A, RB, Callable 02/15/04 @ 102 MBIA
5.375%, 02/15/24 .................. 400 405
Alexandria, Redevelopment & Housing
Authority, Buckingham Village
Apartments Project, AMT, RB,
Callable 01/01/06 @ 102
6.050%, 07/01/16 .................. 250 263
Alexandria, Redevelopment & Housing
Authority, Essex House Project, Ser A,
AMT, RB, Callable 01/01/08 @ 102
5.550%, 07/01/28 .................. 1,000 1,005
Arlington County, Industrial Development
Authority, Headquarters Facility Project,
The Nature Conservancy, Ser A,
RB, Callable 07/01/07 @ 102
5.250%, 07/01/12 .................. 300 310
Arlington County, Public Improvements,
GO, Callable 06/01/05 @ 101.50
5.400%, 06/01/12 .................. 250 262
Brunswick County, Industrial Development
Authority, Correctional Facility Lease,
RB, Callable 07/01/06 @ 102 MBIA
5.500%, 07/01/17 .................. 400 412
Capital Region Airport Community,
Richmond International Airport Project,
Ser A, RB, Callable 07/01/05 @
102 AMBAC
5.625%, 07/01/15 .................. 500 521
Chesapeake, Refunding Bond, GO
5.250%, 12/01/06 .................. 500 531
Chesterfield County, Refunding Bond,
GO, Callable 03/01/03 @ 101.50
5.250%, 03/01/08 .................. 500 524
Fairfax County, Industrial Development
Authority, Inova Health System
Project, RB FSA
5.250%, 08/15/19 .................. 500 516
Fairfax County, Public Improvements,
Ser A, GO, Callable 06/01/03 @ 102
5.000%, 06/01/07 .................. 500 521
Fairfax County, Redevelopment &
Housing Authority, Mott & Gum
Springs Community Centers, RB,
Callable 06/01/06 @ 102
5.500%, 06/01/12 .................. 425 440
Face Market
Amount Value
(000) (000)
------ ------
Fairfax County, Redevelopment &
Housing Authority, Paul Spring Center
Project, Ser A, RB, Callable
12/01/06 @ 103 (B)
5.900%, 06/15/17 .................. $250 $ 266
Fairfax County, Water Authority,
Refunding Bond, RB, Callable
04/01/07 @ 102
6.000%, 04/01/22 .................. 315 341
Fairfax County, Water Authority,
Refunding Bond, RB, Prerefunded
04/01/07 @ 102
6.000%, 04/01/22 .................. 185 210
Frederick-Winchester, Service Authority,
Regional Sewer System Project, RB,
Callable 10/01/03 @ 102 AMBAC
5.750%, 10/01/10 .................. 150 161
Fredericksburg, Industrial Development
Authority, Hospital Facilities Project,
Medicorp Health System Obligation, RB,
Callable 06/15/07 @ 102 AMBAC
5.300%, 06/15/10 .................. 500 527
5.250%, 06/15/23 .................. 300 302
Hampton Roads, Sanitation Authority,
Capital Improvements, RB, Callable
10/01/03 @ 102
5.100%, 10/01/08 .................. 335 348
Henrico County, Industrial Development
Authority, Residential & Healthcare Facility,
Our Lady of Hope, RB,
Callable 07/01/03 @102 (B)
6.100%, 07/01/20 .................. 1,000 1,012
Henrico County, Public Improvements,
GO, Callable 01/15/03 @ 102
5.200%, 01/15/07 .................. 250 263
Henry County, Industrial Development
Authority, Martinsville & Henry Hospital
Project, RB, Callable 01/01/07 @ 101
6.000%, 01/01/17 .................. 500 531
James City County, Public Improvements,
GO, Callable 12/15/05 @ 102 FGIC
5.250%, 12/15/14 .................. 250 255
King George County, Industrial
Development Authority, Birchwood
Power Partners, Ser B, AMT, RB (A) (B)
4.100%, 06/01/98 500 500
Leesburg, Public Improvements, GO,
Callable 06/01/05 @ 102 AMBAC
5.400%, 06/01/10 250 264
Leesburg, Utility Systems, RB, Callable
07/01/07 @ 102 MBIA
5.000%, 07/01/10 750 775
Loudoun County, School Improvements,
Ser A, GO, Callable 06/01/06 @ 102 (B)
5.600%, 06/01/10 250 268
Loudoun County, Sanitation Authority,
Water & Sewer Project, RB,
Callable 01/01/07 @ 102 FGIC
5.125%, 01/01/26 750 747
19
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BOND FUND (continued)
Face Market
Amount Value
(000) (000)
------ ------
VIRGINIA (continued)
Lynchburg, Public Improvements, GO,
Callable 05/01/06 @ 102
5.100%, 05/01/11 .................. $ 500 $ 515
Manassas, Water Utility Improvements,
Ser A, GO, Callable 01/01/08 @ 102
5.000%, 01/01/18 .................. 500 496
Newport News, Redevelopment &
Housing Authority, Ser A, GNMA Mortgage
Financing, RB, Callable 08/20/07
@102 GNMA (B)
5.850%, 12/20/30 .................. 500 515
Norfolk, Public Improvements, GO,
Callable 06/01/06 @ 101
5.250%, 06/01/09 .................. 500 524
Norfolk, Industrial Development Authority,
Bon Secours Health Care Project, RB,
Callable 08/15/07 @ 102 MBIA
5.250%, 08/15/17 .................. 750 756
Northern Virginia Transportation District,
Virginia Railway Express Project, RB,
Callable 07/01/00 @ 100 FSA
6.000%, 07/01/14 .................. 250 260
Portsmouth, Public Improvements, GO,
Callable 08/01/06 @ 101 FGIC
5.250%, 08/01/21 .................. 500 505
Richmond, Metropolitan Expressway
Authority, Highway Improvement
Project, Ser A, RB, Prerefunded
07/15/02 @ 100 FGIC
5.750%, 07/15/22 .................. 250 265
Richmond, Public Utility Authority,
Utility Improvements, Ser A, RB
4.300%, 01/15/05 .................. 1,000 993
Richmond, Redevelopment & Housing
Authority, Richmeade Project,
AMT, RB (A)
4.625%, 06/25/98 .................. 500 500
Richmond, Redevelopment & Housing
Authority, Belmont Apartments
Project, AMT, RB (A) (B)
3.600%, 06/03/98 .................. 500 500
Roanoke, Public Improvements, GO,
Callable 08/01/04 @ 102
5.150%, 08/01/12 .................. 250 256
Spotsylvania County, Refunding Bond,
GO, FSA
5.000%, 07/15/14 .................. 1,000 1,004
Spotsylvania County, Water &
Sewer System, RB, Callable
06/01/07 @ 102 MBIA
5.250%, 06/01/12 .................. 500 514
5.250%, 06/01/22 .................. 250 253
Stafford County, Water & Sewer System,
RB, Callable 06/01/03 @ 102 FGIC
5.250%, 06/01/12 .................. 250 255
Face Market
Amount Value
(000) (000)
------ ------
Upper Occoquan, Sewer Authority,
Regional Sewer Project, Ser A, RB,
Callable 07/01/06 @ 102 MBIA
5.000%, 07/01/25 .................. $ 500 $ 489
Virginia Beach, Industrial Development
Authority, Residential & Healthcare
Facility, Our Lady of Perpetual Hope,
RB, Callable 07/01/07 @ 102
6.150%, 07/01/27 .................. 250 257
Virginia Beach, Refunding & Public
Improvement Bond, GO
4.200%, 08/01/04 .................. 1,000 1,001
Virginia Beach, Refunding Bond, GO
5.450%, 07/15/11 .................. 200 216
Virginia Polytechnic Institute & State
University, University Service Systems,
RB, Callable 06/01/06 @ 102
5.500%, 06/01/16 .................. 200 206
Virginia State, Biotechnology Research
Park Authority, Biotech Two Project,
RB, Callable 09/01/06 @ 101
5.250%, 09/01/18 .................. 500 513
Virginia State, Housing Development
Authority, Commonwealth Mortgage
Project, Ser A, SubSer A-4, AMT, RB,
Callable 01/01/06 @ 102 MBIA
6.350%, 07/01/18 .................. 150 161
Virginia State, Housing Development
Authority, Commonwealth Mortgage
Project, Ser A, SubSer A-4, RB,
Callable 01/01/03 @ 102
6.400%, 07/01/17 .................. 985 1,045
Virginia State, Public Building Authority,
Public Improvements, RB,
Callable 08/01/05 @ 101
5.200%, 08/01/16 .................. 300 304
Virginia State, Public School Authority,
School Financing, Ser A, RB
4.300%, 08/01/05 .................. 500 501
Virginia State, Public School Authority,
School Financing, Ser A, RB,
Callable 08/01/07 @ 102 (B)
5.375%, 08/01/18 .................. 500 513
Virginia State University, University &
College Improvements, Ser A, RB,
Callable 05/01/06 @ 102
5.625%, 05/01/16 .................. 1,000 1,039
West Point, Industrial Development
Authority, Chesapeake Corporation
Project, Ser B, RB,
Callable 03/01/04 @ 102
6.250%, 03/01/19 .................. 165 177
- ---------------------------------------------------------
28,052
- ---------------------------------------------------------
Total Municipal Bonds
(Cost $27,194) ................ 28,052
- ---------------------------------------------------------
20
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BOND FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
CASH EQUIVALENT (4.5%)
Aim Tax Free Institutional
Cash Reserve ....................... $1,293 $ 1,293
- ---------------------------------------------------------
Total Cash Equivalent
(Cost $1,293) ................. 1,293
- ---------------------------------------------------------
Total Investments (102.7%)
(Cost $28,487) ................ 29,345
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-2.7%) ..... (781)
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .75 billion shares
authorized) based on 2,468,725
outstanding shares .......................... 25,241
Portfolio Shares of Investor Class B
($.001 par value -- .125 billion shares
authorized) based on 238,858
outstanding shares .......................... 2,466
Overdistributed net investment income ......... (1)
Net unrealized appreciation on investments .... 858
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $28,564
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($26,034,830 / 2,468,725
SHARES OUTSTANDING) ........................... $10.55
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B
($2,528,915 / 238,858
SHARES OUTSTANDING) ........................... $10.59
=========================================================
(A) Adjustable Rate Security. The rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1998. 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.
AMT--Alternative Minimum Tax
AMBAC--American Municipal Bond Assurance Corporation
FGIC--Financial Guaranty Insurance Company
FSA--Financial Securities Assurance
GO--General Obligation
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
RB--Revenue Bond
Ser--Series
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
MARYLAND MUNICIPAL BOND FUND
Face Market
Amount Value
(000) (000)
------ ------
MUNICIPAL BONDS (94.7%)
MARYLAND (91.9%)
Annapolis, Public Improvements,
Refunding Bond, GO,
Callable 11/01/08 @ 101
4.800%, 11/01/13 .................. $500 $ 496
Anne Arundel County, Water Utility
Improvements, Refunding Bond,
GO, Callable 02/01/08 @ 101
5.125%, 02/01/24 .................. 750 753
Baltimore County, Construction &
Public Improvements, GO,
Callable 06/01/06 @ 101
5.500%, 06/01/16 .................. 250 261
Baltimore County, Revenue Authority,
RB, Prerefunded 07/01/99 @ 102
7.200%, 07/01/19 .................. 200 211
Baltimore County, Pension Funding,
GO, Callable 08/01/08 @ 101
5.125%, 08/01/15 .................. 500 509
Baltimore, Emergency Telecommunication
Facilities, Certificate of Participation,
Ser A, Callable 10/01/07 @ 102 AMBAC
5.000%, 10/01/17 .................. 400 397
Baltimore, Parking Authority, City
Parking System Facilities, RB FGIC
4.350%, 07/01/02 .................. 200 201
Baltimore, Pollution Control, General
Motors Corporate Project, RB
5.350%, 04/01/08 .................. 250 264
Calvert County, Economic Development
Authority, Asbury-Solomons Project,
RB, Callable 01/01/08 @ 102 MBIA
5.000%, 01/01/17 .................. 250 248
5.000%, 01/01/27 .................. 250 248
Calvert County, Pollution Control,
Baltimore Gas & Electric Company
Project, RB, Callable 07/15/04 @ 102
5.550%, 07/15/14 .................. 250 260
Carroll County, Public Improvements,
GO, Callable 12/01/06 @ 101
5.125%, 12/01/14 .................. 500 513
Harford County, Public Improvements,
GO, Callable 12/01/07 @ 102
4.900%, 12/01/11 .................. 500 508
Howard County, Metropolitan District,
Public Improvements, Ser A, GO,
Prerefunded 02/15/05 @ 101
5.650%, 02/15/16 .................. 100 109
Howard County, Public Improvements,
Ser A, GO
4.750%, 02/15/13 .................. 250 248
Maryland State, Public Improvements,
First Ser, GO, Callable 02/15/06 @ 101.50
4.700%, 02/15/10 .................. 300 303
Face Market
Amount Value
(000) (000)
------ ------
Maryland State, Public Improvements,
Third Ser, GO
5.500%, 10/15/04 .................. $500 $ 538
Maryland State, Department of
Housing & Community Development,
Ser B, AMT, RB, Callable
03/01/07 @ 101.50 (B)
5.875%, 09/01/25 .................. 500 516
Maryland State, Department of
Housing & Community Development,
Single Family Housing, First Ser, RB,
Callable 04/01/07 @ 101.50 (B)
5.600%, 04/01/18 .................. 430 443
Maryland State, Department of Housing &
Community Development, Multi Family
Housing, Ser B, RB, Callable
05/15/05 @ 102 (B)
5.650%, 05/15/15 .................. 115 119
Maryland State, Health & Higher
Educational Facilities Authority,
Broadmead Project, RB,
Callable 07/01/07 @ 102 (A)
5.500%, 07/01/17 .................. 300 302
Maryland State, Health & Higher
Educational Facilities Authority, Good
Samaritan Hospital Project, RB,
Callable 07/01/03 @ 102 AMBAC
5.750%, 07/01/19 .................. 100 104
Maryland State, Health & Higher
Educational Facilities Authority,
Helix Health Issue, RB, Callable
07/01/08 @ 101 AMBAC
5.000%, 07/01/27 .................. 380 371
Maryland State, Health & Higher
Educational Facilities Authority,
Johns Hopkins Health System Project,
RB, Callable 07/01/07 @ 102 AMBAC
5.250%, 07/01/17 .................. 350 356
Maryland State, Health & Higher
Educational Facilities Authority,
Loyola College Project, Ser A, RB,
Callable 10/01/06 @ 102 MBIA
5.500%, 10/01/16 .................. 250 260
Maryland State, Health & Higher
Educational Facilities Authority,
North Arundel Hospital Project,
Ser A, RB (A) (B)
3.900%, 06/04/98 .................. 700 700
Maryland State, Health & Higher
Educational Facilities Authority,
Pickersgill Project, Ser A, RB,
Callable 01/01/07 @ 102
6.000%, 01/01/15 .................. 350 372
Maryland State, Health & Higher
Educational Facilities Authority, Pooled
Loan Project, Ser D, RB (A) (B)
3.850%, 06/04/98 .................. 500 500
22
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
MARYLAND MUNICIPAL BOND FUND (continued)
Face Market
Amount Value
(000) (000)
------ ------
MARYLAND (continued)
Maryland State, Health & Higher
Educational Facilities Authority,
University of Maryland Medical
Systems Project, Ser A, RB,
Prerefunded 07/01/01 @ 100 FGIC
6.500%, 07/01/21 .................. $200 $ 214
Maryland State, Industrial Development
Authority, Holy Cross Health System,
RB, Callable 12/01/03 @ 102
5.500%, 12/01/15 .................. 100 103
Maryland State, Stadium Authority,
Sports Facility Project, RB,
Callable 03/01/06 @ 101 AMBAC
5.800%, 03/01/26 .................. 250 262
Maryland State, Transportation Authority,
Transportation Facilities Project, RB,
Escrowed to Maturity
6.800%, 07/01/16 .................. 120 142
Montgomery County, Housing
Opportunity, RB (A)
3.900%, 06/04/98 .................. 1,000 1,000
Montgomery County, Housing
Opportunity, Ser A, RB,
Callable 07/01/05 @ 102
6.000%, 07/01/20 .................. 100 106
Montgomery County, Pollution Control,
Potomac Electric Power Company
Project, RB, Callable 02/15/04 @ 102
5.375%, 02/15/24 .................. 100 102
Montgomery County, Refunding Bond,
Ser A, GO
5.800%, 07/01/07 .................. 500 553
Montgomery County, Revenue Authority,
Human Services Headquarters
Project, RB
5.400%, 08/01/06 .................. 200 215
Northeast Maryland, Waste Disposal
Authority, Montgomery County
Resource Recovery Project,
Ogden Martin Systems, RB,
Callable 07/01/03 @ 102
6.200%, 07/01/10 .................. 275 297
Prince Georges County, Public
Improvements, Ser A, GO, Callable
03/01/02 @ 102 MBIA
5.625%, 09/01/04 .................. 250 266
Prince Georges County, Dimensions
Health Project, RB,
Callable 07/01/04 @ 102
5.375%, 07/01/14 .................. 250 252
5.300%, 07/01/24 .................. 250 249
Queen Annes County, School
Improvements, GO, FGIC
5.125%, 11/15/06 .................. 350 369
Face Market
Amount Value
(000) (000)
------ ------
Saint Mary's County, Public Facilities,
GO, Callable 11/01/03 @ 102 AMBAC
5.500%, 11/01/07 .................. $150 $ 160
Saint Mary's County, Public
Improvements, GO, MBIA
4.500%, 09/01/00 .................. 500 507
University of Maryland, University &
College Improvements, Ser A, RB
5.000%, 04/01/05 .................. 400 415
University of Maryland, University &
College Improvements, Ser A, RB,
Callable 04/01/05 @ 102
5.400%, 04/01/09 .................. 100 106
University of Maryland, University &
College Improvements, Ser A, RB,
Callable 04/01/06 @ 101
5.500%, 04/01/08 .................. 100 107
University of Maryland, University &
College Improvements, Ser C, RB
4.350%, 10/01/03 .................. 250 252
Washington County, Public
Improvements, GO,
Callable 01/01/03 @ 102 FGIC
5.250%, 01/01/07 .................. 100 105
Washington County, Suburban Sanitation
District, GO, Callable 06/01/06 @ 100
5.600%, 06/01/19 .................. 250 259
- ---------------------------------------------------------
16,151
- ---------------------------------------------------------
PUERTO RICO (1.7%)
Commonwealth Highway &
Transportation Authority, Ser Y, RB,
Callable 07/01/06 @ 101.50
5.500%, 07/01/26 .................. 300 307
- ---------------------------------------------------------
TEXAS (1.1%)
Grapevine, Industrial Development
Authority, American Airlines Project,
Ser A2, RB (A) (B)
3.150%, 06/01/98 .................. 200 200
- ---------------------------------------------------------
Total Municipal Bonds
(Cost $16,256) ................ 16,658
- ---------------------------------------------------------
CASH EQUIVALENTS (7.4%)
Aim Tax Free Institutional Cash Reserve 817 817
Federated Maryland Municipal Cash Trust 475 475
- ---------------------------------------------------------
Total Cash Equivalents
(Cost $1,292) ................. 1,292
- ---------------------------------------------------------
Total Investments (102.1%)
(Cost $17,548) ................ 17,950
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-2.1%) ..... (368)
- ---------------------------------------------------------
23
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
MARYLAND MUNICIPAL BOND FUND (concluded)
Market
Value
(000)
------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .9 billion shares
authorized) based on 1,587,944
outstanding shares .......................... $15,601
Portfolio Shares of Investor Class B
($.001 par value -- .05 billion shares
authorized) based on 158,783
outstanding shares .......................... 1,579
Net unrealized appreciation on investments .... 402
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $17,582
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($15,981,569 / 1,587,944
SHARES OUTSTANDING) ........................... $10.06
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B
($1,600,373 / 158,783 SHARES OUTSTANDING) ..... $10.08
=========================================================
(A) Adjustable Rate Security. The rate reflected on the Statement of Net Assets
is the rate in effect on May 31, 1998. 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.
AMT--Alternative Minimum Tax
AMBAC--American Municipal Bond Assurance Corporation
FGIC--Financial Guaranty Insurance Company
GO--General Obligation
MBIA--Municipal Bond Insurance Association
RB--Revenue Bond
Ser--Series
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
VALUE FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (95.3%)
AIRCRAFT (0.3%)
Coltec Industries* ................... 100,000 $ 2,231
- ---------------------------------------------------------
BANKS (4.4%)
BankAmerica .......................... 75,000 6,202
H.F. Ahmanson ........................ 125,000 9,531
NationsBank .......................... 175,000 13,256
- ---------------------------------------------------------
28,989
- ---------------------------------------------------------
CHEMICALS (2.4%)
Great Lakes Chemical ................. 350,000 14,000
Octel ................................ 87,500 1,909
- ---------------------------------------------------------
15,909
- ---------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICES (11.2%)
BMC Software* ........................ 160,000 7,360
Cisco Systems* ....................... 175,000 13,212
Hewlett Packard ...................... 165,000 10,251
IBM .................................. 100,000 11,737
Intel ................................ 150,000 10,706
Microsoft* ........................... 130,000 11,026
Quantum* ............................. 450,000 9,844
- ---------------------------------------------------------
74,136
- ---------------------------------------------------------
DIVERSIFIED (1.0%)
Loews ................................ 75,000 6,806
- ---------------------------------------------------------
ELECTRIC UTILITY (0.4%)
Calenergy* ........................... 80,000 2,420
- ---------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (5.7%)
General Electric ..................... 125,000 10,422
Philips Electronics, ADR ............. 150,000 14,269
Textron .............................. 175,000 12,983
- ---------------------------------------------------------
37,674
- ---------------------------------------------------------
FINANCIAL SERVICES (3.3%)
Fannie Mae ........................... 175,000 10,478
Morgan Stanley, Dean Witter,
Discover ............................ 150,000 11,709
- ---------------------------------------------------------
22,187
- ---------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (10.1%)
Coca Cola ............................ 120,000 9,405
Kellogg .............................. 325,000 13,427
PepsiCo .............................. 350,000 14,284
Philip Morris ........................ 375,000 14,016
Quaker Oats .......................... 275,000 15,864
- ---------------------------------------------------------
66,996
- ---------------------------------------------------------
GAS/NATURAL GAS (1.9%)
Columbia Gas Systems ................. 150,000 12,656
- ---------------------------------------------------------
HEALTHCARE SERVICES (1.8%)
Aetna ................................ 150,000 11,728
- ---------------------------------------------------------
Market
Value
Shares (000)
------ ------
INSURANCE (5.7%)
American International Group ......... 100,000 $ 12,381
Cigna ................................ 180,000 12,330
General RE ........................... 60,000 13,192
- ---------------------------------------------------------
37,903
- ---------------------------------------------------------
MACHINERY (3.9%)
Case ................................. 100,000 5,788
Illinois Tool Works .................. 150,000 9,900
Ingersoll-Rand ....................... 225,000 10,139
- ---------------------------------------------------------
25,827
- ---------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (10.9%)
Amgen* ............................... 250,000 15,109
Johnson & Johnson .................... 135,000 9,323
Merck ................................ 65,000 7,609
Schering Plough ...................... 155,000 12,972
Tenet Healthcare* .................... 300,000 10,500
United States Surgical ............... 425,000 16,894
- ---------------------------------------------------------
72,407
- ---------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES (1.3%)
Reynolds & Reynolds, Cl A ............ 400,000 8,375
- ---------------------------------------------------------
PAPER & PAPER PRODUCTS (2.0%)
Fort James ........................... 275,000 13,148
- ---------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (9.5%)
Exxon ................................ 200,000 14,100
Helmerich & Payne .................... 400,000 10,100
Mobil ................................ 100,000 7,800
Schlumberger ......................... 105,000 8,197
Unocal ............................... 300,000 10,688
USX-Marathon Group ................... 350,000 12,250
- ---------------------------------------------------------
63,135
- ---------------------------------------------------------
PROFESSIONAL SERVICES (1.7%)
Accustaff* ........................... 350,000 11,528
- ---------------------------------------------------------
RAILROADS (2.0%)
Canadian Pacific Limited ............. 450,000 13,078
- ---------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (1.9%)
Hospitality Properties Trust ......... 400,000 12,500
- ---------------------------------------------------------
RECREATIONAL PRODUCTS & SERVICES (1.3%)
Walt Disney .......................... 75,000 8,484
- ---------------------------------------------------------
RESTAURANTS (2.3%)
Wendy's International ................ 625,000 15,430
- ---------------------------------------------------------
RETAIL (4.8%)
Federated Department Stores* ......... 250,000 12,953
J.C. Penney .......................... 100,000 7,181
Lowes ................................ 143,000 11,324
- ---------------------------------------------------------
31,458
- ---------------------------------------------------------
25
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
VALUE FUND (concluded)
Shares/
Face Market
Amount Value
(000) (000)
------ ------
TELEPHONES & TELECOMMUNICATION (1.9%)
AT&T ................................. 205,000 $ 12,479
- ---------------------------------------------------------
UTILITIES, ELECTRIC, & GAS (3.6%)
Southern ............................. 425,000 11,289
Texas Utilities ...................... 325,000 12,838
- ---------------------------------------------------------
24,127
- ---------------------------------------------------------
Total Common Stocks
(Cost $503,535) ............... 631,611
- ---------------------------------------------------------
CASH EQUIVALENT (4.6%)
Aim Liquid Assets Portfolio .......... $30,200 30,200
- ---------------------------------------------------------
Total Cash Equivalent
(Cost $30,200) ................ 30,200
- ---------------------------------------------------------
REPURCHASE AGREEMENT (0.2%)
J.P. Morgan
5.57%, dated 05/29/98, matures
06/01/98, repurchase price
$1,436,213 (collateralized by
GNMA obligation: total market
value: $1,464,258) ................. 1,436 1,436
- ---------------------------------------------------------
Total Repurchase Agreement
(Cost $1,436) ................. 1,436
- ---------------------------------------------------------
Total Investments (100.1%)
(Cost $535,171) ............... 663,247
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-0.1%) ..... (730)
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 1.0 billion shares
authorized) based on 40,380,846
outstanding shares .......................... 436,222
Portfolio Shares of Investor Class A
($.001 par value -- .25 billion shares
authorized) based on 2,383,823
outstanding shares .......................... 30,233
Portfolio Shares of Investor Class B
($.001 par value -- .25 billion shares
authorized) based on 1,483,092
outstanding shares .......................... 20,874
Overdistributed net investment income ......... (51)
Accumulated net realized gain on investments .. 47,163
Net unrealized appreciation on investments .... 128,076
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $662,517
- ---------------------------------------------------------
Market
Value
------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($604,319,361 / 40,380,846
SHARES OUTSTANDING) ........................... $14.97
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
($35,929,452 / 2,383,823
SHARES OUTSTANDING) ........................... $15.07
- ---------------------------------------------------------
OFFERING PRICE PER SHARE -- INVESTOR CLASS A
($15.07 / 95.5%) .............................. $15.78
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B
($22,268,192 / 1,483,092
SHARES OUTSTANDING) ........................... $15.01
=========================================================
* Non-income producing security.
ADR--American Depository Receipt
Cl--Class
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, 1998 Unaudited
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (97.0%)
BANKS (3.5%)
Fifth Third Bancorp .................. 37,500 $ 1,847
State Street ......................... 40,000 2,757
- ---------------------------------------------------------
4,604
- ---------------------------------------------------------
CHEMICALS (1.7%)
Praxair .............................. 45,000 2,219
- ---------------------------------------------------------
COMMUNICATIONS EQUIPMENT (0.5%)
Ciena* ............................... 13,300 688
- ---------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICES (16.0%)
BMC Software* ........................ 70,000 3,220
Cisco Systems* ....................... 45,000 3,397
Computer Associates International .... 50,000 2,625
Hewlett Packard ...................... 35,000 2,174
Intel ................................ 33,000 2,355
Microsoft* ........................... 35,000 2,968
Network Associates* .................. 45,000 2,756
Storage Technology* .................. 20,000 1,677
- ---------------------------------------------------------
21,172
- ---------------------------------------------------------
COSMETICS, SOAPS & TOILETRIES (0.6%)
Procter & Gamble ..................... 10,000 839
- ---------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (1.7%)
General Electric ..................... 15,000 1,251
SCI Systems* ......................... 31,000 1,058
- ---------------------------------------------------------
2,309
- ---------------------------------------------------------
FINANCIAL SERVICES (7.3%)
A.G. Edwards ......................... 60,000 2,426
Fiserv* .............................. 40,000 2,352
Fannie Mae ........................... 40,000 2,395
T. Rowe Price and Associates ......... 70,000 2,476
- ---------------------------------------------------------
9,649
- ---------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (6.2%)
Coca Cola ............................ 18,000 1,411
Hershey Foods ........................ 15,000 1,039
Kellogg .............................. 21,000 868
PepsiCo .............................. 24,000 979
Philip Morris ........................ 43,000 1,607
Quaker Oats .......................... 16,000 923
Sara Lee ............................. 24,000 1,413
- ---------------------------------------------------------
8,240
- ---------------------------------------------------------
INSURANCE (6.1%)
American International Group ......... 26,000 3,219
Jefferson-Pilot ...................... 37,500 2,147
Travelers ............................ 43,000 2,623
- ---------------------------------------------------------
7,989
- ---------------------------------------------------------
Market
Value
Shares (000)
------ ------
MACHINERY (4.0%)
Dover ................................ 60,000 $ 2,250
Illinois Tool Works .................. 45,000 2,970
- ---------------------------------------------------------
5,220
- ---------------------------------------------------------
MANUFACTURING (4.1%)
Mattel ............................... 70,000 2,651
Tyco International Limited ........... 50,000 2,769
- ---------------------------------------------------------
5,420
- ---------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (13.2%)
Abbott Laboratories .................. 35,000 2,597
Amgen* ............................... 50,000 3,022
Healthsouth Rehabilitation* .......... 40,000 1,135
Johnson & Johnson .................... 40,000 2,763
Merck ................................ 20,000 2,341
Schering Plough ...................... 35,000 2,929
Watson Pharmaceuticals* .............. 60,000 2,625
- ---------------------------------------------------------
17,412
- ---------------------------------------------------------
PAPER & PAPER PRODUCTS (1.0%)
Fort James ........................... 27,500 1,315
- ---------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (4.5%)
Oryx Energy* ......................... 35,000 816
Schlumberger ......................... 25,000 1,952
Tidewater ............................ 30,000 1,140
Transocean Offshore .................. 24,000 1,184
Vintage Petroleum .................... 50,000 906
- ---------------------------------------------------------
5,998
- ---------------------------------------------------------
PRINTING & PUBLISHING (2.8%)
Gannett .............................. 32,000 2,110
Meredith ............................. 40,000 1,590
- ---------------------------------------------------------
3,700
- ---------------------------------------------------------
PROFESSIONAL SERVICES (3.4%)
Accustaff* ........................... 60,000 1,976
Service Corporation International .... 60,000 2,453
- ---------------------------------------------------------
4,429
- ---------------------------------------------------------
RECREATIONAL PRODUCTS & SERVICES (1.0%)
Walt Disney .......................... 12,000 1,358
- ---------------------------------------------------------
RESTAURANTS (1.3%)
Wendy's International ................ 70,000 1,728
- ---------------------------------------------------------
RETAIL (11.1%)
Home Depot ........................... 39,000 3,064
Lowes ................................ 40,000 3,168
Office Depot* ........................ 90,000 2,655
Pier 1 Imports ....................... 85,000 2,045
TJX .................................. 32,000 1,496
Walgreen ............................. 65,000 2,287
- ---------------------------------------------------------
14,715
- ---------------------------------------------------------
27
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND (concluded)
Shares/
Face Market
Amount Value
(000) (000)
------ ------
STEEL & STEEL WORKS (1.6%)
Nucor ................................ 40,000 $ 2,060
- ---------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (3.5%)
MCI Communications ................... 30,000 1,603
Worldcom* ............................ 65,000 2,958
- ---------------------------------------------------------
4,561
- ---------------------------------------------------------
WHOLESALE (1.9%)
Richfood Holdings .................... 100,000 2,444
- ---------------------------------------------------------
Total Common Stocks
(Cost $96,178) ................ 128,069
- ---------------------------------------------------------
CASH EQUIVALENT (3.0%)
Aim Liquid Assets Portfolio .......... $3,963 3,963
- ---------------------------------------------------------
Total Cash Equivalent
(Cost $3,963) ................. 3,963
- ---------------------------------------------------------
Total Investments (100.0%)
(Cost $100,141) ............... 132,032
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.0%) ...... 38
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .75 billion shares
authorized) based on 7,094,530
outstanding shares .......................... 90,823
Portfolio Shares of Investor Class A
($.001 par value -- .25 billion shares
authorized) based on 590,128
outstanding shares .......................... 7,214
Portfolio Shares of Investor Class B
($.001 par value -- .25 billion shares
authorized) based on 151,135
outstanding shares .......................... 2,434
Overdistributed net investment income ......... (111)
Accumulated net realized loss on investments .. (181)
Net unrealized appreciation on investments .... 31,891
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $132,070
- ---------------------------------------------------------
Market
Value
------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($119,716,560 / 7,094,530
SHARES OUTSTANDING) ........................... $16.87
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
($9,847,282 / 590,128
SHARES OUTSTANDING) ........................... $16.69
- ---------------------------------------------------------
OFFERING PRICE PER SHARE -- INVESTOR CLASS A
($16.69 / 95.5%) .............................. $17.48
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B
($2,506,257 / 151,135
SHARES OUTSTANDING) ........................... $16.58
=========================================================
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
SPECIAL EQUITY FUND
Market
Value
Shares (000)
------ ------
COMMON STOCKS (97.3%)
AEROSPACE & DEFENSE (0.8%)
Avondale Industries* ................. 38,000 $ 1,069
- ---------------------------------------------------------
AIR TRANSPORTATION (1.2%)
America West Holdings, Cl B* ......... 33,000 934
KLM Royal Dutch Air .................. 18,500 720
- ---------------------------------------------------------
1,654
- ---------------------------------------------------------
AIRCRAFT (1.1%)
Coltec Industries* ................... 65,000 1,450
- ---------------------------------------------------------
APPAREL/TEXTILES (0.7%)
Galey & Lord* ........................ 40,000 990
- ---------------------------------------------------------
AUTOMOTIVE (3.1%)
Arvin Industries ..................... 37,500 1,390
Sonic Automotive* .................... 88,200 1,577
Superior Industries International .... 40,000 1,165
- ---------------------------------------------------------
4,132
- ---------------------------------------------------------
BANKS (3.2%)
Golden State Bancorp* ................ 62,000 2,375
Regions Financial .................... 25,000 1,025
SouthTrust ........................... 20,250 820
- ---------------------------------------------------------
4,220
- ---------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING (0.9%)
Capstar Broadcasting Partners* ....... 7,000 133
DSP Group* ........................... 50,000 969
Young & Rubicam* ..................... 5,000 140
- ---------------------------------------------------------
1,242
- ---------------------------------------------------------
BUILDING & CONSTRUCTION SUPPLIES (3.0%)
Centex Construction Products ......... 30,000 1,147
Lone Star Industries ................. 22,000 1,654
Southdown ............................ 18,300 1,201
- ---------------------------------------------------------
4,002
- ---------------------------------------------------------
CHEMICALS (0.9%)
Solutia .............................. 45,000 1,235
- ---------------------------------------------------------
COMMUNICATIONS EQUIPMENT (5.8%)
Comverse Technology* ................. 100,150 5,001
Corsair Communications* .............. 50,000 728
Davox* ............................... 86,900 1,597
P-Com* ............................... 22,300 334
- ---------------------------------------------------------
7,660
- ---------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICES (9.4%)
3DO* ................................. 401,900 1,507
Acclaim Entertainment* ............... 150,000 956
Avid Technology* ..................... 44,200 1,790
Electronic Arts* ..................... 15,000 649
Market
Value
Shares (000)
------ ------
HMT Technology* ...................... 145,000 $ 1,686
Manhattan Associates* ................ 1,000 20
Memco Software Limited* .............. 36,700 817
Novell* .............................. 100,000 1,050
Smart Modular* ....................... 60,000 817
Splash Technologies Holdings* ........ 140,000 2,371
Tech Data* ........................... 19,500 790
- ---------------------------------------------------------
12,453
- ---------------------------------------------------------
CONSUMER PRODUCTS (0.6%)
Stride Rite .......................... 55,400 738
- ---------------------------------------------------------
ELECTRICAL SERVICES (1.4%)
El Paso Electric* .................... 136,700 1,299
Public Service of New Mexico ......... 25,000 542
- ---------------------------------------------------------
1,841
- ---------------------------------------------------------
ELECTRICAL TECHNOLOGY (0.6%)
Anixter International* ............... 42,700 859
- ---------------------------------------------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (3.4%)
AFC Cable Systems* ................... 35,000 1,168
SCI Systems* ......................... 100,000 3,412
- ---------------------------------------------------------
4,580
- ---------------------------------------------------------
EMPLOYMENT SERVICES (0.7%)
Metamor Worldwide* ................... 29,500 885
- ---------------------------------------------------------
ENERGY SERVICES (0.4%)
AES* ................................. 11,000 523
- ---------------------------------------------------------
FINANCIAL SERVICES (3.5%)
Chapman Holdings* .................... 25,000 256
Federated Investors* ................. 10,000 179
Firstplus Financial Group* ........... 35,000 1,396
Freedom Securities* .................. 40,000 690
Friedman Billing Ramsey Group, Cl A .. 73,500 1,153
T&W Financial* ....................... 40,000 930
Unicapital* .......................... 1,200 21
- ---------------------------------------------------------
4,625
- ---------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (1.9%)
Suiza Foods* ......................... 30,000 1,753
Universal ............................ 20,000 751
- ---------------------------------------------------------
2,504
- ---------------------------------------------------------
GAS/NATURAL GAS (0.4%)
Public Service of North Carolina ..... 28,300 601
- ---------------------------------------------------------
HOTELS & LODGING (1.9%)
CapStar Hotel* ....................... 35,000 1,024
Prime Hospitality* ................... 85,500 1,534
- ---------------------------------------------------------
2,558
- ---------------------------------------------------------
29
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
SPECIAL EQUITY FUND (continued)
Market
Value
Shares (000)
------ ------
INSURANCE (9.9%)
American Heritage Life Investment .... 50,000 $ 1,050
Amerin* .............................. 30,000 900
Amerus Life Holdings, Cl A ........... 42,500 1,360
CMAC Investment ...................... 43,000 2,601
ESG RE Limited* ...................... 50,000 1,019
Fremont General ...................... 52,000 2,974
Life Re .............................. 8,600 633
Old Republic International ........... 52,500 1,496
Protective Life ...................... 30,000 1,080
- ---------------------------------------------------------
13,113
- ---------------------------------------------------------
LEASING & RENTING (1.4%)
Renters Choice* ...................... 69,500 1,859
- ---------------------------------------------------------
MACHINERY (2.2%)
Agco ................................. 42,500 1,068
Hawk* ................................ 20,000 365
Trinity Industries ................... 30,000 1,433
- ---------------------------------------------------------
2,866
- ---------------------------------------------------------
MARINE TRANSPORTATION (0.4%)
Teekay Shipping ...................... 20,000 520
- ---------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (7.2%)
Beverly Enterprises* ................. 54,000 773
Healthplan Services .................. 22,500 499
Mariner Health Group* ................ 32,000 476
Maxxim Medical* ...................... 67,800 1,585
Pharmerica* .......................... 37,748 458
United Wisconsin Services ............ 65,400 2,027
Watson Pharmaceuticals* .............. 60,000 2,625
Wellpoint Health Networks* ........... 18,000 1,170
- ---------------------------------------------------------
9,613
- ---------------------------------------------------------
METALS & MINING (1.2%)
Titanium Metals* ..................... 65,000 1,580
- ---------------------------------------------------------
OIL MACHINERY & EQUIPMENT (1.9%)
Evi Weatherford* ..................... 28,500 1,441
National-Oilwell* .................... 30,000 1,048
- ---------------------------------------------------------
2,489
- ---------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (5.2%)
Cooper Cameron* ...................... 7,000 417
HS Resources* ........................ 47,900 692
Key Energy Group* .................... 52,000 855
R & B Falcon* ........................ 50,000 1,434
Santa Fe Energy Resources* ........... 100,000 994
Transocean Offshore .................. 37,000 1,825
Vintage Petroleum .................... 37,900 687
- ---------------------------------------------------------
6,904
- ---------------------------------------------------------
Market
Value
Shares (000)
------ ------
REAL ESTATE (1.4%)
Indymac Mortgage Holdings ............ 50,000 $ 1,184
Tanger Outlet Center ................. 20,000 621
- ---------------------------------------------------------
1,805
- ---------------------------------------------------------
RESTAURANTS (1.6%)
Darden Restaurants ................... 135,000 2,084
- ---------------------------------------------------------
RETAIL (11.0%)
Buckle* .............................. 30,000 1,530
Heilig-Meyers ........................ 100,000 1,200
Men's Wearhouse* ..................... 15,000 634
Pacific Sunwear of California* ....... 22,000 983
Pier 1 Imports ....................... 50,000 1,203
Proffitts* ........................... 55,000 2,159
Ross Stores .......................... 47,000 2,074
Russ Berrie .......................... 57,000 1,439
Stein Mart* .......................... 40,000 630
Zale* ................................ 91,000 2,815
- ---------------------------------------------------------
14,667
- ---------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS (0.6%)
American Xtal Technology* ............ 33,800 374
Speedfam International* .............. 22,500 437
- ---------------------------------------------------------
811
- ---------------------------------------------------------
SPECIALTY CONSTRUCTION (1.7%)
Horizon Offshore* .................... 40,000 585
J. Ray McDermott S.A.* ............... 41,500 1,676
- ---------------------------------------------------------
2,261
- ---------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (3.3%)
Advanced Fibre Communication* ........ 42,000 1,554
Excel Communications* ................ 60,000 1,320
Hyperion Telecommunications, Cl A* ... 20,000 306
Smartalk Teleservices* ............... 40,000 733
US Lec* .............................. 20,000 460
- ---------------------------------------------------------
4,373
- ---------------------------------------------------------
TRUCKING (2.4%)
Budget Group, Cl A* .................. 46,000 1,357
Roadway Express ...................... 27,700 518
US Freightways ....................... 41,300 1,296
- ---------------------------------------------------------
3,171
- ---------------------------------------------------------
WHOLESALE (1.0%)
Richfood Holdings .................... 52,000 1,271
- ---------------------------------------------------------
Total Common Stocks
(Cost $113,336) ............... 129,208
- ---------------------------------------------------------
30
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
SPECIAL EQUITY FUND (concluded)
Face Market
Amount Value
(000) (000)
------ ------
CASH EQUIVALENT (2.7%)
Aim Liquid Assets Portfolio .......... $3,617 $ 3,617
- ---------------------------------------------------------
Total Cash Equivalent
(Cost $3,617) ................. 3,617
- ---------------------------------------------------------
Total Investments (100.0%)
(Cost $116,953) ............... 132,825
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.0%) ...... 8
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- .75 billion shares
authorized) based on 8,179,368
outstanding shares .......................... 99,760
Portfolio Shares of Investor Class A
($.001 par value -- .125 billion shares
authorized) based on 423,136
outstanding shares .......................... 5,125
Portfolio Shares of Investor Class B
($.001 par value -- .125 billion shares
authorized) based on 218,893
outstanding shares .......................... 3,127
Undistributed net investment loss ............. (221)
Accumulated net realized gain on investments .. 9,170
Net unrealized appreciation on investments .... 15,872
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $132,833
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($123,242,366 / 8,179,368
SHARES OUTSTANDING) ........................... $15.07
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS A
($6,373,030 / 423,136
SHARES OUTSTANDING) ........................... $15.06
- ---------------------------------------------------------
OFFERING PRICE PER SHARE -- INVESTOR CLASS A
($15.06 / 95.5%) .............................. $15.77
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTOR CLASS B
($3,217,883 / 218,893
SHARES OUTSTANDING) ........................... $14.70
=========================================================
* Non-income producing security.
Cl--Class
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
LIFE VISION MAXIMUM GROWTH PORTFOLIO
Market
Value
Shares (000)
------ ------
EQUITY FUNDS (98.9%)
CrestFunds Capital Appreciation
Fund, Trust Class ................. 298,237 $ 5,034
CrestFunds Special Equity Fund,
Trust Class ....................... 276,712 4,170
CrestFunds Value Fund, Trust Class ... 494,532 7,403
- ---------------------------------------------------------
Total Equity Funds
(Cost $15,953) ................ 16,607
- ---------------------------------------------------------
MONEY MARKET FUND (1.1%)
CrestFunds Cash Reserve Fund,
Trust Class ....................... 191,892 192
- ---------------------------------------------------------
Total Money Market Fund
(Cost $192) ................... 192
- ---------------------------------------------------------
Total Investments (100.0%)
(Cost $16,145) ................ 16,799
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.0%) ...... (6)
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 3.75 billion shares
authorized) based on 1,432,148
outstanding shares .......................... 14,517
Overdistributed net investment income ......... (6)
Accumulated net realized gain on investments .. 1,628
Net unrealized appreciation on investments .... 654
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $16,793
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($16,793,217 / 1,432,148
SHARES OUTSTANDING) ........................... $11.73
=========================================================
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
LIFE VISION GROWTH AND INCOME PORTFOLIO
Market
Value
Shares (000)
------ ------
EQUITY FUNDS (69.7%)
CrestFunds Capital Appreciation
Fund, Trust Class ................. 242,971 $ 4,101
CrestFunds Special Equity Fund,
Trust Class ....................... 262,995 3,963
CrestFunds Value Fund, Trust Class ... 421,884 6,316
- ---------------------------------------------------------
Total Equity Funds
(Cost $13,757) ................ 14,380
- ---------------------------------------------------------
FIXED INCOME FUNDS (29.2%)
CrestFunds Government Bond
Fund, Trust Class ................. 177,998 1,866
CrestFunds Intermediate Bond
Fund, Trust Class ................. 206,685 2,073
CrestFunds Limited Term Bond
Fund, Trust Class ................. 208,558 2,073
- ---------------------------------------------------------
Total Fixed Income Funds
(Cost $5,898) ................. 6,012
- ---------------------------------------------------------
MONEY MARKET FUND (1.0%)
CrestFunds Cash Reserve Fund,
Trust Class ....................... 203,992 204
- ---------------------------------------------------------
Total Money Market Fund
(Cost $204) ................... 204
- ---------------------------------------------------------
Total Investments (99.9%)
(Cost $19,859) ................ 20,596
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.1%) ...... 20
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 3.75 billion shares
authorized) based on 1,828,937
outstanding shares .......................... 17,759
Undistributed net investment income ........... 2
Accumulated net realized gain on investments .. 2,118
Net unrealized appreciation on investments .... 737
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $20,616
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($20,615,753 / 1,828,937
SHARES OUTSTANDING) ........................... $11.27
=========================================================
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
STATEMENT OF NET ASSETS CRESTFUNDS, INC.
May 31, 1998 Unaudited
- --------------------------------------------------------------------------------
LIFE VISION BALANCED PORTFOLIO
Market
Value
Shares (000)
------ ------
EQUITY FUNDS (59.4%)
CrestFunds Capital Appreciation Fund,
Trust Class ...................... 1,134,165 $19,145
CrestFunds Special Equity Fund,
Trust Class ...................... 919,797 13,861
CrestFunds Value Fund,
Trust Class ...................... 1,636,783 24,503
- ---------------------------------------------------------
Total Equity Funds
(Cost $55,299) ............... 57,509
- ---------------------------------------------------------
FIXED INCOME FUNDS (39.1%)
CrestFunds Government Bond Fund,
Trust Class ...................... 835,043 8,751
CrestFunds Intermediate Bond Fund,
Trust Class ...................... 1,938,229 19,440
CrestFunds Limited Term Bond Fund,
Trust Class ...................... 977,534 9,717
- ---------------------------------------------------------
Total Fixed Income Funds
(Cost $37,205) ............... 37,908
- ---------------------------------------------------------
MONEY MARKET FUND (1.0%)
CrestFunds Cash Reserve Fund,
Trust Class ...................... 923,370 923
- ---------------------------------------------------------
Total Money Market Fund
(Cost $923) .................. 923
- ---------------------------------------------------------
Total Investments (99.5%)
(Cost $93,427) ............... 96,340
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.5%) ...... 535
- ---------------------------------------------------------
NET ASSETS:
Portfolio Shares of Trust Class
($.001 par value -- 3.75 billion shares
authorized) based on 8,709,244
outstanding shares .......................... 87,213
Undistributed net investment income ........... 31
Accumulated net realized gain on investments .. 6,718
Net unrealized appreciation on investments .... 2,913
- ---------------------------------------------------------
Total Net Assets: (100.0%) ............... $96,875
- ---------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- TRUST CLASS
($96,874,914 / 8,709,244
SHARES OUTSTANDING) ........................... $11.12
=========================================================
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS CRESTFUNDS, INC.
For the Period Ended May 31, 1998 Unaudited
(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: ..................................... $33,908 $16,056 $4,222 $2,564 $10,247
- --------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees .......................... 2,150 1,136 459 198 929
Waiver of Investment Advisory Fees ................ -- -- -- -- --
Administrative Fees ............................... 888 434 172 59 232
Waiver of Administrative Fees ..................... -- -- -- -- --
Custodian/Transfer Agent Fees ..................... 483 281 103 33 141
Professional Fees ................................. 47 19 5 3 15
Director Fees ..................................... 13 7 2 1 6
Registration & Filing Fees ........................ 116 39 11 2 15
Insurance Expense ................................. 5 3 2 -- 2
Distribution Fees--Trust Class .................... 775 433 166 59 230
Waiver of Distribution Fees--Trust Class .......... (775) (433) (166) (59) (230)
Distribution Fees--Investors Class A .............. 301 -- 16 -- 2
Waiver of Distribution Fees--Investors Class A .... (301) -- (16) -- (2)
Distribution Fees--Investors Class B .............. -- -- -- -- --
Waiver of Distribution Fees--Investors Class B .... -- -- -- -- --
Printing Fees ..................................... 10 9 2 1 7
Miscellaneous Fees ................................ 8 2 1 1 10
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses .................................. 3,720 1,930 757 298 1,357
- --------------------------------------------------------------------------------------------------------------------------------
Net Investment Income ................................ 30,188 14,126 3,465 2,266 8,890
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on Investments .............. -- -- (10) 1 4,846
Change in Net Unrealized Appreciation (Depreciation)
of Investments .................................... -- -- -- 159 (2,402)
- --------------------------------------------------------------------------------------------------------------------------------
Change in Net Realized and Unrealized Gain (Loss)
on Investments .................................... -- -- (10) 160 2,444
- --------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
from Operations ................................... $30,188 $14,126 $3,455 $2,426 $11,334
================================================================================================================================
<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>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS CRESTFUNDS, INC.
For the Period Ended May 31, 1998 Unaudited
(IN THOUSANDS)
=============================================================================
VIRGINIA INTERMEDIATE VIRGINIA MARYLAND
GOVERNMENT MUNICIPAL MUNICIPAL MUNICIPAL VALUE
BOND FUND BOND FUND BOND FUND BOND FUND FUND
==================================================================================================================================
<S> <C> <C> <C> <C> <C>
Interest Income: ..................................... $1,344 $6,425 $628 $345 $ 1,120
Dividend Income: ..................................... -- -- -- -- 4,304
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees .......................... 126 619 73 44 2,399
Waiver of Investment Advisory Fees ................ (21) -- (12) (25) --
Administrative Fees ............................... 32 186 18 11 480
Waiver of Administrative Fees ..................... (32) -- (18) -- --
Custodian/Transfer Agent Fees ..................... 25 118 12 5 314
Professional Fees ................................. 5 19 1 1 18
Director Fees ..................................... 1 4 -- -- 6
Registration & Filing Fees ........................ 8 8 4 2 12
Insurance Expense ................................. -- 2 -- -- 1
Distribution Fees--Trust Class .................... 30 179 17 10 443
Waiver of Distribution Fees--Trust Class .......... (30) (179) (17) (10) (443)
Distribution Fees--Investors Class A .............. -- 6 -- -- 24
Waiver of Distribution Fees--Investors Class A .... -- (6) -- -- (24)
Distribution Fees--Investors Class B .............. 7 -- 10 5 87
Waiver of Distribution Fees--Investors Class B .... -- -- (1) -- (22)
Printing Fees ..................................... 1 4 -- 1 10
Miscellaneous Fees ................................ 1 7 4 5 10
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses .................................. 153 967 91 49 3,315
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income ................................ 1,191 5,458 537 296 2,109
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on Investments .............. 553 981 (1) 30 47,584
Change in Net Unrealized Appreciation (Depreciation)
of Investments .................................... (134) 940 283 116 23,993
- ----------------------------------------------------------------------------------------------------------------------------------
Change in Net Realized and Unrealized Gain
on Investments .................................... 419 1,921 282 146 71,577
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
from Operations ................................... $1,610 $7,379 $819 $442 $73,686
==================================================================================================================================
<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.
36
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS CRESTFUNDS, INC.
For the Period Ended May 31, 1998 Unaudited
(IN THOUSANDS)
=============================================================================
CAPITAL SPECIAL LIFE VISION LIFE VISION LIFE VISION
APPRECIATION EQUITY MAXIMUM GROWTH AND BALANCED
FUND FUND GROWTH PORTFOLIO INCOME PORTFOLIO PORTFOLIO
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Interest Income: ..................................... $ 133 $ 140 $ -- $ -- $ --
Dividend Income: ..................................... 428 321 33 217 1,138
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees .......................... 453 485 20 29 117
Waiver of Investment Advisory Fees ................ -- -- (12) (17) (62)
Administrative Fees ............................... 91 97 20 20 20
Waiver of Administrative Fees ..................... -- -- (20) (20) (20)
Custodian/Transfer Agent Fees ..................... 60 60 6 9 37
Professional Fees ................................. 4 7 1 1 4
Director Fees ..................................... -- 2 -- -- 1
Registration & Filing Fees ........................ 6 10 2 4 15
Insurance Expense ................................. -- -- -- -- --
Distribution Fees--Trust Class .................... 83 90 -- -- --
Waiver of Distribution Fees--Trust Class .......... (83) (90) -- -- --
Distribution Fees--Investors Class A .............. 7 5 -- -- --
Waiver of Distribution Fees--Investors Class A .... (7) (5) -- -- --
Distribution Fees--Investors Class B .............. 7 14 -- -- --
Waiver of Distribution Fees--Investors Class B .... -- (1) -- -- --
Printing Fees ..................................... 1 3 -- -- 1
Miscellaneous Fees ................................ 1 5 3 3 3
- -----------------------------------------------------------------------------------------------------------------------------------
Total Expenses .................................. 623 682 20 29 116
- -----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) ......................... (62) (221) 13 188 1,022
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Gain Received from Investments ............... -- -- 1,745 2,128 6,943
Net Realized Gain (Loss) on Investments .............. 505 9,387 (116) (8) (222)
Change in Net Unrealized Appreciation
(Depreciation) of Investments ..................... 13,478 (1,691) (86) (266) (817)
- -----------------------------------------------------------------------------------------------------------------------------------
Change in Net Realized and Unrealized Gain
on Investments .................................... 13,983 7,696 1,543 1,854 5,904
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
from Operations ................................... $13,921 $7,475 $1,556 $2,042 $6,926
===================================================================================================================================
<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.
37
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1998 (Unaudited) and for the Period Ended November 30, 1997
(IN THOUSANDS)
========================================================================
CASH RESERVE CASH RESERVE U.S. TREASURY U.S. TREASURY TAX FREE
FUND FUND MONEY FUND MONEY FUND MONEY FUND
============ ============ ============= ============= ===========
12/01/97 12/01/96 12/01/97 12/01/96 12/01/97
TO 05/31/98 TO 11/30/97 TO 05/31/98 TO 11/30/97 TO 05/31/98
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ......................... $ 30,188 $ 43,108 $ 14,126 $ 24,451 $ 3,465
Net Realized Gain (Loss) on Investments ....... -- 32 -- -- (10)
- -----------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations ... 30,188 43,140 14,126 24,451 3,455
- -----------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ................................... (26,362) (38,023) (14,123) (24,456) (3,327)
Investors Class A ............................. (3,826) (5,133) -- -- (120)
Investors Class B ............................. -- (1) -- -- --
Capital Gains
Trust Class ................................... -- -- -- -- --
Investors Class A ............................. -- -- -- -- --
Investors Class B ............................. -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions ......................... (30,188) (43,157) (14,123) (24,456) (3,447)
- -----------------------------------------------------------------------------------------------------------------------------
Change in Net Assets ............................... -- (17) 3 (5) 8
- -----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (All at $1.00 Per Share):
Trust Class:
Shares Issued ................................. 973,294 1,704,048 531,213 1,251,595 139,920
Reinvestment of Cash Distributions ............ -- 733 2 146 --
Shares Redeemed ............................... (886,477) (1,477,765) (607,503) (1,008,406) (172,842)
---------- ----------- --------- ----------- --------
Total Trust Class Transactions .............. 86,817 227,016 (76,288) 243,335 (32,922)
---------- ----------- --------- ----------- --------
Investors Class A:
Shares Issued ................................. 78,369 135,942 -- -- 11,100
Reinvestment of Cash Distributions ............ 3,689 4,595 -- -- 115
Shares Redeemed ............................... (59,374) (70,439) -- -- (10,668)
---------- ----------- --------- ----------- --------
Total Investors Class A Transactions ........ 22,684 70,098 -- -- 547
---------- ----------- --------- ----------- --------
Investors Class B:
Shares Issued ................................. -- 23 -- -- --
Reinvestment of Cash Distributions ............ 1 1 -- -- --
---------- ----------- --------- ----------- --------
Total Investors Class B Transactions ........ 1 23 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ...................... 109,502 297,137 (76,288) 243,335 (32,375)
- -----------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ..... 109,502 297,120 (76,285) 243,330 (32,367)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ............................. 983,685 686,565 632,381 389,051 234,471
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period ................................... $1,093,187 $ 983,685 $ 556,096 $ 632,381 $202,104
=============================================================================================================================
(IN THOUSANDS)
==============
TAX FREE
MONEY FUND
==============
12/01/96
TO 11/30/97
===================================================================
<S> <C>
Investment Activities:
Net Investment Income ......................... $ 6,505
Net Realized Gain (Loss) on Investments ....... 3
- -------------------------------------------------------------------
Increase in Net Assets Resulting From Operations ... 6,508
- -------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ................................... (6,352)
Investors Class A ............................. (161)
Investors Class B ............................. --
Capital Gains
Trust Class ................................... --
Investors Class A ............................. --
Investors Class B ............................. --
- -------------------------------------------------------------------
Total Distributions ......................... (6,513)
- -------------------------------------------------------------------
Change in Net Assets ............................... (5)
- -------------------------------------------------------------------
Capital Share Transactions (All at $1.00 Per Share):
Trust Class:
Proceeds from Shares Issued ................... 393,449
Reinvestment of Cash Distributions ............ --
Shares Redeemed ............................... (348,927)
---------
Total Trust Class Transactions .............. 44,522
---------
Investors Class A:
Proceeds from Shares Issued ................... 16,177
Reinvestment of Cash Distributions ............ 144
Shares Redeemed ............................... (11,681)
---------
Total Investors Class A Transactions ........ 4,640
---------
Investors Class B:
Proceeds from Shares Issued ................... --
Reinvestment of Cash Distributions ............ --
Cost of Shares Redeemed ....................... --
---------
Total Investors Class B Transactions ........ --
- ------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ...................... 49,162
- ------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ..... 49,157
- ------------------------------------------------------------------
Net Assets:
Beginning of Period ............................. 185,314
- ------------------------------------------------------------------
Net Assets:
End of Period ................................... $ 234,471
==================================================================
<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.
38
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1998 (Unaudited) and for the Period Ended November 30, 1997
(IN THOUSANDS)
========================================================================
LIMITED TERM LIMITED TERM INTERMEDIATE INTERMEDIATE GOVERNMENT
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
============ ============ ============ ============ ===========
12/01/97 12/01/96 12/01/97 12/01/96 12/01/97
TO 05/31/98 TO 11/30/97 TO 05/31/98 TO 11/30/97 TO 05/31/98
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income .............................. $ 2,266 $ 4,443 $ 8,890 $ 17,429 $ 1,191
Net Realized Gain (Loss) on Investments ............ 1 (284) 4,846 (194) 553
Change in Net Unrealized Appreciation (Depreciation)
of Investments ................................... 159 107 (2,402) 1,022 (134)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations ........ 2,426 4,266 11,334 18,257 1,610
- -----------------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ........................................ (2,258) (4,387) (8,957) (17,309) (1,156)
Investors Class A .................................. (12) (58) (76) (131) --
Investors Class B .................................. -- -- -- -- (32)
Capital Gains
Trust Class ........................................ -- -- -- -- --
Investors Class A .................................. -- -- -- -- --
Investors Class B .................................. -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions .............................. (2,270) (4,445) (9,033) (17,440) (1,188)
- -----------------------------------------------------------------------------------------------------------------------------------
Change in Net Assets .................................... 156 (179) 2,301 817 422
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued ........................ 17,209 32,072 38,948 71,860 20,768
Reinvestment of Cash Distributions ................. 964 2,281 948 1,966 366
Shares Redeemed .................................... (13,468) (41,456) (28,735) (56,005) (6,955)
------- -------- -------- -------- -------
Total Trust Class Transactions ................... 4,705 (7,103) 11,161 17,821 14,179
------- -------- -------- -------- -------
Investors Class A:
Proceeds from Shares Issued ........................ 37 39 1,171 783 --
Reinvestment of Cash Distributions ................. 9 47 60 105 --
Shares Redeemed .................................... (1,006) (277) (690) (874) --
------- -------- -------- -------- -------
Total Investors Class A Transactions ............. (960) (191) 541 14 --
------- -------- -------- -------- -------
Investors Class B:
Proceeds from Shares Issued ........................ -- -- -- -- 570
Reinvestment of Cash Distributions ................. -- -- -- -- 23
Cost of Shares Redeemed ............................ -- -- -- -- (207)
------- -------- -------- -------- -------
Total Investors Class B Transactions ............. -- -- -- -- 386
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ........................... 3,745 (7,294) 11,702 17,835 14,565
- -----------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets .......... 3,901 (7,473) 14,003 18,652 14,987
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .................................. 78,622 86,095 302,077 283,425 35,226
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period ........................................ $82,523 $ 78,622 $316,080 $302,077 $50,213
Shares Issued and Redeemed:
Trust Class:
Shares Issued ...................................... 1,809 3,333 4,013 7,474 2,007
Shares Issued in Lieu of Cash Distributions ........ 97 231 95 204 35
Shares Redeemed .................................... (1,436) (4,288) (2,995) (5,853) (688)
------- -------- -------- -------- -------
Total Trust Class Share Transactions ............. 470 (724) 1,113 1,825 1,354
------- -------- -------- -------- -------
Investors Class A:
Shares Issued ...................................... 4 4 117 80 --
Shares Issued in Lieu of Cash Distributions ........ 1 5 6 11 --
Shares Redeemed .................................... (98) (28) (69) (89) --
------- -------- -------- -------- -------
Total Investors Class A Share Transactions ....... (93) (19) 54 2 --
------- -------- -------- -------- -------
Investors Class B:
Shares Issued ...................................... -- -- -- -- 55
Shares Issued in Lieu of Cash Distributions ........ -- -- -- -- 2
Shares Redeemed .................................... -- -- -- -- (20)
------- -------- -------- -------- -------
Total Investors Class B Share Transactions ....... -- -- -- -- 37
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital Share Transactions . 377 (743) 1,167 1,827 1,391
===================================================================================================================================
(IN THOUSANDS)
==============
GOVERNMENT
BOND FUND
==============
12/01/96
TO 11/30/97
=========================================================================
<S> <C>
Investment Activities:
Net Investment Income .............................. $ 2,160
Net Realized Gain (Loss) on Investments ............ 89
Change in Net Unrealized Appreciation (Depreciation)
of Investments ................................... 300
- -------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations ........ 2,549
- -------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ........................................ (2,116)
Investors Class A .................................. --
Investors Class B .................................. (45)
Capital Gains
Trust Class ........................................ --
Investors Class A .................................. --
Investors Class B .................................. --
- -------------------------------------------------------------------------
Total Distributions .............................. (2,161)
- -------------------------------------------------------------------------
Change in Net Assets .................................... 388
- -------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Shares Issued ...................................... 31,044
Reinvestment of Cash Distributions ................. 846
Shares Redeemed .................................... (18,428)
--------
Total Trust Class Transactions ................... 13,462
--------
Investors Class A:
Shares Issued ...................................... --
Reinvestment of Cash Distributions ................. --
Shares Redeemed .................................... --
--------
Total Investors Class A Transactions ............. --
--------
Investors Class B:
Shares Issued ...................................... 485
Reinvestment of Cash Distributions ................. 33
Shares Redeemed .................................... (11)
--------
Total Investors Class B Transactions ............. 507
- -------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ........................... 13,969
- -------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets .......... 14,357
- -------------------------------------------------------------------------
Net Assets:
Beginning of Period .................................. 20,869
- -------------------------------------------------------------------------
Net Assets:
End of Period ........................................ $ 35,226
Shares Issued and Redeemed:
Trust Class:
Shares Issued ...................................... 3,087
Shares Issued in Lieu of Cash Distributions ........ 77
Shares Redeemed .................................... (1,824)
--------
Total Trust Class Share Transactions ............. 1,340
--------
Investors Class A:
Shares Issued ...................................... --
Shares Issued in Lieu of Cash Distributions ........ --
Shares Redeemed .................................... --
--------
Total Investors Class A Share Transactions ....... --
--------
Investors Class B:
Shares Issued ...................................... 48
Shares Issued in Lieu of Cash Distributions ........ 3
Shares Redeemed .................................... (1)
--------
Total Investors Class B Share Transactions ....... 50
- -------------------------------------------------------------------------
Net Increase (Decrease) from Capital Share Transactions . 1,390
=========================================================================
<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.
39
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1998 (Unaudited) and for the Period Ended November 30, 1997
(IN THOUSANDS)
=====================================================================
VIRGINIA VIRGINIA
INTERMEDIATE INTERMEDIATE VIRGINIA VIRGINIA MARYLAND
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
============ ============ =========== =========== ===========
12/01/97 12/01/96 12/01/97 12/01/96 12/01/97
TO 05/31/98 TO 11/30/97 TO 05/31/98 TO 11/30/97 TO 05/31/98
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ........................... $ 5,458 $ 11,260 $ 537 $ 832 $ 296
Net Realized Gain (Loss) on Investments ......... 981 1,641 (1) 67 30
Change in Net Unrealized Appreciation
of Investments ................................ 940 490 283 278 116
- -----------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations ..... 7,379 13,391 819 1,177 442
- -----------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ..................................... (5,295) (10,835) (504) (792) (279)
Investors Class A ............................... (190) (353) -- -- --
Investors Class B ............................... -- -- (34) (40) (17)
Capital Gains
Trust Class ..................................... (793) -- (50) (12) --
Investors Class A ............................... (28) -- (4) -- --
Investors Class B ............................... -- -- -- (1) --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions ........................... (6,306) (11,188) (592) (845) (296)
- -----------------------------------------------------------------------------------------------------------------------------
Change in Net Assets ................................. 1,073 2,203 227 332 146
- -----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued ..................... 21,231 35,373 7,916 9,497 6,959
Reinvestment of Cash Distributions .............. 608 22 36 26 1
Cost of Shares Redeemed ......................... (18,543) (43,571) (2,170) (5,693) (2,580)
-------- -------- ------- ------- -------
Total Trust Class Transactions ................ 3,296 (8,176) 5,782 3,830 4,380
-------- -------- ------- ------- -------
Investors Class A:
Proceeds from Shares Issued ..................... 1,618 938 -- -- --
Reinvestment of Cash Distributions .............. 162 274 -- -- --
Cost of Shares Redeemed ......................... (714) (1,639) -- -- --
-------- -------- ------- ------- -------
Total Investors Class A Transactions .......... 1,066 (427) -- -- --
-------- -------- ------- ------- -------
Investors Class B:
Proceeds from Shares Issued ..................... -- -- 1,098 743 1,059
Reinvestment of Cash Distributions .............. -- -- 28 31 14
Cost of Shares Redeemed ......................... -- -- (91) (115) (39)
-------- -------- ------- ------- -------
Total Investors Class B Transactions .......... -- -- 1,035 659 1,034
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ........................ 4,362 (8,603) 6,817 4,489 5,414
- -----------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ....... 5,435 (6,400) 7,044 4,821 5,560
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ............................... 244,922 251,322 21,520 16,699 12,022
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period ..................................... $250,357 $244,922 $28,564 $21,520 $17,582
=============================================================================================================================
Shares Issued and Redeemed:
Trust Class:
Shares Issued ................................... 2,051 3,476 752 928 693
Shares Issued in Lieu of Cash Distributions ..... 59 2 4 2 --
Shares Redeemed ................................. (1,791) (4,278) (206) (559) (257)
-------- -------- ------- ------- -------
Total Trust Class Share Transactions .......... 319 (800) 550 371 436
-------- -------- ------- ------- -------
Investors Class A:
Shares Issued ................................... 156 92 -- -- --
Shares Issued in Lieu of Cash Distributions ..... 16 27 -- -- --
Shares Redeemed ................................. (69) (161) -- -- --
-------- -------- ------- ------- -------
Total Investors Class A Share Transactions .... 103 (42) -- -- --
-------- -------- ------- ------- -------
Investors Class B:
Shares Issued ................................... -- -- 104 73 105
Shares Issued in Lieu of Cash Distributions ..... -- -- 3 3 1
Shares Redeemed ................................. -- -- (9) (11) (4)
-------- -------- ------- ------- -------
Total Investors Class B Share Transactions .... -- -- 98 65 102
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital
Share Transactions ................................. 422 (842) 648 436 538
=============================================================================================================================
(IN THOUSANDS)
=============
MARYLAND
MUNICIPAL
BOND FUND
=============
12/01/96
TO 11/30/97
====================================================================
<S> <C>
Investment Activities:
Net Investment Income ............................. $ 374
Net Realized Gain (Loss) on Investments ........... (5)
Change in Net Unrealized Appreciation
of Investments .................................. 241
- --------------------------------------------------------------------
Increase in Net Assets Resulting From Operations ....... 610
- --------------------------------------------------------------------
Distribution to Shareholders:
Net Investment Income
Trust Class ....................................... (363)
Investors Class A ................................. --
Investors Class B ................................. (11)
Capital Gains
Trust Class ....................................... --
Investors Class A ................................. --
Investors Class B ................................. --
- --------------------------------------------------------------------
Total Distributions ............................. (374)
- --------------------------------------------------------------------
Change in Net Assets ................................... 236
- --------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued ....................... 6,495
Reinvestment of Cash Distributions ................ 2
Cost of Shares Redeemed ........................... (1,067)
-------
Total Trust Class Transactions .................. 5,430
-------
Investors Class A:
Proceeds from Shares Issued ....................... --
Reinvestment of Cash Distributions ................ --
Cost of Shares Redeemed ........................... --
-------
Total Investors Class A Transactions ............ --
-------
Investors Class B:
Proceeds from Shares Issued ....................... 518
Reinvestment of Cash Distributions ................ 9
Cost of Shares Redeemed ........................... (92)
-------
Total Investors Class B Transactions ............ 435
- --------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions .......................... 5,865
- --------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ......... 6,101
- --------------------------------------------------------------------
Net Assets:
Beginning of Period ................................. 5,921
- --------------------------------------------------------------------
Net Assets:
End of Period ....................................... $12,022
====================================================================
Shares Issued and Redeemed:
Trust Class:
Shares Issued ..................................... 667
Shares Issued in Lieu of Cash Distributions ....... --
Shares Redeemed ................................... (110)
-------
Total Trust Class Share Transactions ............ 557
-------
Investors Class A:
Shares Issued ..................................... --
Shares Issued in Lieu of Cash Distributions ....... --
Shares Redeemed ................................... --
-------
Total Investors Class A Share Transactions ...... --
-------
Investors Class B:
Shares Issued ..................................... 53
Shares Issued in Lieu of Cash Distributions ....... 1
Shares Redeemed ................................... (9)
-------
Total Investors Class B Share Transactions ...... 45
- --------------------------------------------------------------------
Net Increase (Decrease) from Capital
Share Transactions .................................. 602
====================================================================
<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.
40
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1998 (Unaudited) and for the Period Ended November 30, 1997
(IN THOUSANDS)
============================================================================
CAPITAL CAPITAL SPECIAL SPECIAL
VALUE VALUE APPRECIATION APPRECIATION EQUITY EQUITY
FUND FUND FUND FUND FUND FUND
=========== =========== ============ ============ =========== ===========
12/01/97 12/01/96 12/01/97 12/01/96 12/01/97 12/01/96
TO 05/31/98 TO 11/30/97 TO 05/31/98 TO 11/30/97 TO 05/31/98 TO 11/30/97
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Investment Activities:
Net Investment Income (Loss) ......... $ 2,109 $ 5,276 $ (62) $ 223 $ (221) $ (80)
Net Realized Gain on Investments ..... 47,584 118,138 505 5,700 9,387 15,883
Change in Net Unrealized Appreciation
(Depreciation) of investments ...... 23,993 7,024 13,478 12,790 (1,691) 4,525
- ------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
From Operations ........................ 73,686 130,438 13,921 18,713 7,475 20,328
- ------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Trust Class .......................... (2,076) (5,360) (45) (218) -- (30)
Investors Class A .................... (108) (214) (4) (17) -- (2)
Investors Class B .................... -- (24) -- -- -- --
Capital Gains
Trust Class .......................... (110,281) (2,857) (5,885) (1,515) (14,917) (2,129)
Investors Class A .................... (5,275) (96) (469) (226) (783) (129)
Investors Class B .................... (2,562) (27) (30) -- (299) (26)
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions ................ (120,302) (8,578) (6,433) (1,976) (15,999) (2,316)
- ------------------------------------------------------------------------------------------------------------------------
Change in Net Assets ...................... (46,616) 121,860 7,488 16,737 (8,524) 18,012
- ------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued .......... 55,268 86,500 25,554 81,085 18,886 42,454
Reinvestment of Cash Distributions ... 87,776 2,679 3,995 364 12,720 1,455
Cost of Shares Redeemed .............. (85,417) (167,444) (16,064) (30,703) (12,824) (26,423)
-------- -------- -------- -------- -------- --------
Total Trust Class Transactions ..... 57,627 (78,265) 13,485 50,746 18,782 17,486
-------- -------- -------- -------- -------- --------
Investors Class A:
Proceeds from Shares Issued .......... 7,973 9,602 1,674 2,569 631 1,154
Reinvestment of Cash Distributions ... 5,199 303 468 241 758 123
Cost of Shares Redeemed .............. (3,593) (4,558) (744) (881) (486) (930)
-------- -------- -------- -------- -------- --------
Total Investors Class A
Transactions ................... 9,579 5,347 1,398 1,929 903 347
-------- -------- -------- -------- -------- --------
Investors Class B:
Proceeds from Shares Issued .......... 7,956 7,216 2,023 432 1,059 1,192
Reinvestment of Cash Distributions ... 2,504 51 30 -- 294 26
Cost of Shares Redeemed .............. (737) (782) (50) (1) (109) (181)
-------- -------- -------- -------- -------- --------
Total Investors Class B Transactions 9,723 6,485 2,003 431 1,244 1,037
- ------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ............. 76,929 (66,433) 16,886 53,106 20,929 18,870
- ------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets ....... 30,313 55,427 24,374 69,843 12,405 36,882
- ------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .................... 632,204 576,777 107,696 37,853 120,428 83,546
- ------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period .......................... $662,517 $632,204 $132,070 $107,696 $132,833 $120,428
- ------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Trust Class:
Shares Issued ........................ 4,376 6,467 1,962 6,090 1,280 2,987
Shares Issued in Lieu of Cash
Distributions ..................... 6,753 193 273 28 935 110
Shares Redeemed ...................... (6,455) (12,286) (1,365) (2,322) (867) (1,942)
-------- -------- -------- -------- -------- --------
Total Trust Class Share
Transactions ................... 4,674 (5,626) 870 3,796 1,348 1,155
-------- -------- -------- -------- -------- --------
Investors Class A:
Shares Issued ........................ 541 636 103 183 41 73
Shares Issued in Lieu of Cash
Distributions ..................... 397 21 33 19 56 9
Shares Redeemed ...................... (243) (304) (46) (64) (32) (63)
-------- -------- -------- -------- -------- --------
Total Investors Class A Share
Transactions ................... 695 353 90 138 65 19
-------- -------- -------- -------- -------- --------
Investors Class B:
Shares Issued ........................ 542 467 125 27 72 73
Shares Issued in Lieu of Cash
Distributions ...................... 192 4 2 -- 22 2
Shares Redeemed ...................... (51) (53) (3) -- (7) (13)
-------- -------- -------- -------- -------- --------
Total Investors Class B Share
Transactions ................... 683 418 124 27 87 62
- ------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital
Share Transactions ..................... 6,052 (4,855) 1,084 3,961 1,500 1,236
========================================================================================================================
<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.
41
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS CRESTFUNDS, INC.
For the Six Month Period Ended May 31, 1998 (Unaudited) and for the Period Ended November 30, 1997
(IN THOUSANDS)
===========================================================================
LIFE VISION LIFE VISION LIFE VISION LIFE VISION
MAXIMUM MAXIMUM GROWTH AND GROWTH AND
GROWTH PORTFOLIO GROWTH PORTFOLIO INCOME PORTFOLIO INCOME PORTFOLIO
================ ================ ================ ================
12/01/97 07/01/97 12/01/97 07/01/97
TO 05/31/98 TO 11/30/97* TO 05/31/98 TO 11/30/97*
===================================================================================================================================
<S> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ............................ $ 13 $ 39 $ 188 $ 190
Capital Gain Received from Investments ........... 1,745 -- 2,128 --
Net Realized Gain (Loss) on Investments .......... (116) (1) (8) 20
Change in Net Unrealized Appreciation
(Depreciation) of investments .................. (86) 740 (266) 1,003
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations ...... 1,556 778 2,042 1,213
- -----------------------------------------------------------------------------------------------------------------------------------
Distribution to Shareholders:
Trust Class ...................................... (20) (38) (196) (180)
Investors Class A ................................ -- -- -- --
Investors Class B ................................ -- -- -- --
Capital Gains
Trust Class ...................................... -- -- (22) --
Investors Class A ................................ -- -- -- --
Investors Class B ................................ -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions ............................ (20) (38) (218) (180)
- -----------------------------------------------------------------------------------------------------------------------------------
Change in Net Assets .................................. 1,536 740 1,824 1,033
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued ...................... 3,583 13,614 1,433 21,846
Reinvestment of Cash Distributions ............... 20 38 217 180
Cost of Shares Redeemed .......................... (2,058) (680) (5,379) (538)
------- ------- ------- ------
Total Trust Class Transactions ................. 1,545 12,972 (3,729) 21,488
------- ------- ------- ------
Investors Class A:
Proceeds from Shares Issued ...................... -- -- -- --
Reinvestment of Cash Distributions ............... -- -- -- --
Cost of Shares Redeemed .......................... -- -- -- --
------- ------- ------- ------
Total Investors Class A Transactions ........... -- -- -- --
------- ------- ------- ------
Investors Class B:
Proceeds from Shares Issued ...................... -- -- -- --
Reinvestment of Cash Distributions ............... -- -- -- --
Cost of Shares Redeemed .......................... -- -- -- --
------- ------- ------- ------
Total Investors Class B Transactions ........... -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Capital
Share Transactions ................................. 1,545 12,972 (3,729) 21,488
- -----------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ........ 3,081 13,712 (1,905) 22,521
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................................ 13,712 -- 22,521 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets:
End of Period ...................................... $16,793 $13,712 $20,616 $22,521
===================================================================================================================================
Shares Issued and Redeemed:
Trust Class:
Shares Issued .................................... 387 1,350 131 2,177
Shares Issued in Lieu of Cash Distributions ...... 2 4 20 17
Shares Redeemed .................................. (245) (66) (464) (52)
------- ------- ------- ------
Total Trust Class Share Transactions ........... 144 1,288 (313) 2,142
------- ------- ------- ------
Investors Class A:
Shares Issued .................................... -- -- -- --
Shares Issued in Lieu of Cash Distributions ...... -- -- -- --
Shares Redeemed .................................. -- -- -- --
------- ------- ------- ------
Total Investors Class A Share Transactions ..... -- -- -- --
------- ------- ------- ------
Investors Class B:
Shares Issued .................................... -- -- -- --
Shares Issued in Lieu of Cash Distributions ...... -- -- -- --
Shares Redeemed .................................. -- -- -- --
------- ------- ------- ------
Total Investors Class B Share Transactions ..... -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital
Share Transactions ................................. 144 1,288 (313) 2,142
===================================================================================================================================
(IN THOUSANDS)
============================
LIFE VISION LIFE VISION
BALANCED BALANCED
PORTFOLIO PORTFOLIO
============ ============
12/01/97 07/01/97
TO 05/31/98 TO 11/30/97*
=========================================================================================
<S> <C> <C>
Investment Activities:
Net Investment Income ............................ $ 1,022 $ 993
Capital Gain Received from Investments ........... 6,943 --
Net Realized Gain (Loss) on Investments .......... (222) 235
Change in Net Unrealized Appreciation
(Depreciation) of investments .................. (817) 3,730
- -----------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations ...... 6,926 4,958
- -----------------------------------------------------------------------------------------
Distribution to Shareholders:
Trust Class ...................................... (1,043) (941)
Investors Class A ................................ -- --
Investors Class B ................................ -- --
Capital Gains
Trust Class ...................................... (238) --
Investors Class A ................................ -- --
Investors Class B ................................ -- --
- -----------------------------------------------------------------------------------------
Total Distributions ............................ (1,281) (941)
- -----------------------------------------------------------------------------------------
Change in Net Assets .................................. 5,645 4,017
- -----------------------------------------------------------------------------------------
Capital Share Transactions:
Trust Class:
Proceeds from Shares Issued ...................... 7,916 94,371
Reinvestment of Cash Distributions ............... 1,281 941
Cost of Shares Redeemed .......................... (7,409) (9,887)
------- -------
Total Trust Class Transactions ................. 1,788 85,425
------- -------
Investors Class A:
Proceeds from Shares Issued ...................... -- --
Reinvestment of Cash Distributions ............... -- --
Cost of Shares Redeemed .......................... -- --
------- -------
Total Investors Class A Transactions ........... -- --
------- -------
Investors Class B:
Proceeds from Shares Issued ...................... -- --
Reinvestment of Cash Distributions ............... -- --
Cost of Shares Redeemed .......................... -- --
------- -------
Total Investors Class B Transactions ........... -- --
- -----------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Capital
Share Transactions ................................. 1,788 85,425
- -----------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ........ 7,433 89,442
- -----------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................................ 89,442 --
- -----------------------------------------------------------------------------------------
Net Assets:
End of Period ...................................... $96,875 $89,442
=========================================================================================
Shares Issued and Redeemed:
Trust Class:
Shares Issued .................................... 738 9,446
Shares Issued in Lieu of Cash Distributions ...... 119 90
Shares Redeemed .................................. (694) (990)
------- -------
Total Trust Class Share Transactions ........... 163 8,546
------- -------
Investors Class A:
Shares Issued .................................... -- --
Shares Issued in Lieu of Cash Distributions ...... -- --
Shares Redeemed .................................. -- --
------- -------
Total Investors Class A Share Transactions ..... -- --
------- -------
Investors Class B:
Shares Issued .................................... -- --
Shares Issued in Lieu of Cash Distributions ...... -- --
Shares Redeemed .................................. -- --
------- -------
Total Investors Class B Share Transactions ..... -- --
- -----------------------------------------------------------------------------------------
Net Increase (Decrease) from Capital
Share Transactions ................................. 163 8,546
=========================================================================================
<FN>
*Commenced Operations on June 30, 1997.
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.
42
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1998 (Unaudited) and for the Years Ended November 30
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 INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE EXCLUDING
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS FEE WAIVERS
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------
CASH RESERVE FUND
- -----------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $1.00 0.025 -- (0.025) -- $1.00 5.14%* $934,951 0.63%* 0.78%*
1997 1.00 0.050 -- (0.050) -- 1.00 5.16% 848,140 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%
INVESTORS CLASS A
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $1.00 0.025 -- (0.025) -- $1.00 5.14%* $158,197 0.64%* 1.04%*
1997 1.00 0.050 -- (0.050) -- 1.00 5.15% 135,507 0.65% 1.05%
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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $1.00 0.021 -- (0.021) -- $1.00 4.16%* $ 39 1.57%* 1.64%*
1997 1.00 0.042 -- (0.042) -- 1.00 4.22% 38 1.56% 1.71%
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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $1.00 0.024 -- (0.024) -- $1.00 4.92%* $556,096 0.67%* 0.82%*
1997 1.00 0.048 -- (0.048) -- 1.00 4.91% 632,381 0.65% 0.80%
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%
INVESTORS CLASS A (4)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $1.00 0.015 -- (0.015) -- $1.00 3.02%* $193,923 0.66%* 0.81%*
1997 1.00 0.030 -- (0.030) -- 1.00 3.06% 226,837 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%
INVESTORS CLASS A
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $1.00 0.015 -- (0.015) -- $1.00 3.02%* $ 8,181 0.67%* 1.07%*
1997 1.00 0.030 -- (0.030) -- 1.00 3.05% 7,634 0.68% 1.08%
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%*
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO
TO AVERAGE EXCLUDING TURNOVER
NET ASSETS FEE WAIVERS RATE
====================================================================================
<S> <C> <C> <C>
- -----------------
CASH RESERVE FUND
- -----------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 5.10%* 4.95%* --
1997 5.04% 4.89% --
1996 4.87% 4.72% --
1995 5.31% 5.16% --
1994 3.37% 3.37% --
1993 2.75% 2.75% --
INVESTORS CLASS A
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 5.09%* 4.69%* --
1997 5.04% 4.64% --
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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 4.16%* 4.09%* --
1997 4.17% 4.02% --
1996 4.02% 3.87% --
1995 (2) 4.45%* 4.30%* --
- ------------------------
U.S. TREASURY MONEY FUND
- ------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 4.89%* 4.74%* --
1997 4.82% 4.67% --
1996 4.69% 4.54% --
1995 5.16% 5.01% --
1994 3.23% 3.23% --
1993 2.52% 2.52% --
INVESTORS CLASS A (4)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 3.02%* 2.87%* --
1997 3.02% 2.87% --
1996 2.88% 2.73% --
1995 3.19% 3.04% --
1994 2.06% 2.06% --
1993 1.85% 1.85% --
INVESTORS CLASS A
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 3.02%* 2.62%* --
1997 3.04% 2.64% --
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.
(4) 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.
43
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1998 (Unaudited) and for the Years Ended November 30
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
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
LIMITED TERM BOND FUND
- ----------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $ 9.92 0.283 0.021 (0.284) -- $ 9.94 3.10% $ 82,523 0.75%* 0.90%*
1997 9.93 0.570 (0.010) (0.570) -- 9.92 5.84% 77,696 0.75% 0.90%
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%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (1) $ 9.93 0.185 (0.026) (0.189) -- $ 9.90 1.59% $ -- 0.76%* 0.91%*
1997 9.95 0.563 (0.012) (0.569) -- 9.93 5.71% 926 0.77% 0.92%
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 (3) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $ 9.96 0.287 0.074 (0.291) -- $10.03 3.67% $313,264 0.88%* 1.03%*
1997 9.94 0.594 0.021 (0.595) -- 9.96 6.46% 299,820 0.87% 1.02%
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%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $ 9.96 0.285 0.076 (0.291) -- $10.03 3.66% $ 2,816 0.89%* 1.04%*
1997 9.94 0.592 0.022 (0.594) -- 9.96 6.45% 2,257 0.88% 1.03%
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 (4) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $10.36 0.297 0.120 (0.297) -- $10.48 4.07% $ 48,598 0.70%* 1.10%*
1997 10.37 0.605 (0.010) (0.605) -- 10.36 6.04% 34,013 0.66% 1.06%
1996 10.66 0.591 (0.290) (0.591) -- 10.37 3.02% 20,171 0.69% 1.09%
1995(5) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $10.39 0.247 0.120 (0.247) -- $10.51 3.56% $ 1,615 1.66%* 1.96%*
1997 10.39 0.516 -- (0.516) -- 10.39 5.17% 1,213 1.57% 1.97%
1996 10.68 0.503 (0.291) (0.502) -- 10.39 2.12% 698 1.55% 1.95%
1995(2) 10.03 0.338 0.738 (0.333) (0.093) 10.68 10.86%* 325 1.55%* 1.95%*
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO
TO AVERAGE EXCLUDING TURNOVER
NET ASSETS FEE WAIVERS RATE
=====================================================================================
<S> <C> <C> <C>
- ----------------------
LIMITED TERM BOND FUND
- ----------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 5.71%* 5.56%* 75%
1997 5.79% 5.64% 64%
1996 5.41% 5.26% 51%
1995 5.44% 5.29% 36%
1994 4.92% 4.92% 47%
1993 4.95% 4.95% 61%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (1) 5.79%* 5.64%* 75%
1997 5.77% 5.62% 64%
1996 5.39% 5.24% 51%
1995 5.46% 5.31% 36%
1994 4.92% 4.66% 47%
1993 (3) 4.70%* 4.24%* 61%
- ----------------------
INTERMEDIATE BOND FUND
- ----------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 5.74%* 5.59%* 92%
1997 6.07% 5.92% 66%
1996 5.70% 5.55% 35%
1995 5.89% 5.74% 37%
1994 5.53% 5.53% 39%
1993 5.15% 5.15% 28%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 5.73%* 5.58%* 92%
1997 6.06% 5.91% 66%
1996 5.54% 5.39% 35%
1995 5.87% 5.72% 37%
1994 5.51% 5.35% 39%
1993 (4) 4.90%* 4.47%* 28%
- --------------------
GOVERNMENT BOND FUND
- --------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 5.70%* 5.30%* 112%
1997 5.99% 5.59% 144%
1996 5.75% 5.35% 16%
1995(5) 6.00%* 5.60%* 28%
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 4.75%* 4.45%* 112%
1997 5.07% 4.67% 144%
1996 4.89% 4.49% 16%
1995(2) 5.05%* 4.65%* 28%
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) Ceased operations March 29, 1998.
(2) Commencement of operations for this class April 19, 1995.
(3) Commencement of operations for this class May 19, 1993.
(4) Commencement of operations for this class May 11, 1993.
(5) Commencement of operations for this class April 5, 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.
44
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1998 (Unaudited) and for the Years Ended November 30
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
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $10.31 0.227 0.076 (0.228) (0.035) $10.35 2.97% $241,430 0.78%* 0.93%*
1997 10.22 0.463 0.089 (0.462) -- 10.31 5.55% 237,096 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 (7) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $10.31 0.226 0.076 (0.227) (0.035) $10.35 2.96% $ 8,927 0.79%* 0.94%*
1997 10.21 0.468 0.093 (0.461) -- 10.31 5.65% 7,826 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 (6) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $10.44 0.235 0.137 (0.236) (0.026) $10.55 3.59% $ 26,035 0.67%* 1.07%*
1997 10.28 0.475 0.168 (0.475) (0.008) 10.44 6.46% 20,044 0.69% 1.09%
1996 10.40 0.465 (0.120) (0.465) -- 10.28 3.48% 15,911 0.71% 1.11%
1995 (5) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $10.48 0.183 0.137 (0.184) (0.026) $10.59 3.08% $ 2,529 1.63%* 1.93%*
1997 10.31 0.387 0.176 (0.385) (0.008) 10.48 5.58% 1,476 1.60% 2.00%
1996 10.43 0.378 (0.121) (0.377) -- 10.31 2.58% 787 1.57% 1.97%
1995 (8) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $ 9.95 0.208 0.110 (0.208) -- $10.06 3.22% $ 15,982 0.60%* 1.10%*
1997 9.76 0.426 0.190 (0.426) -- 9.95 6.50% 11,461 0.63% 1.28%
1996 (9) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $ 9.96 0.162 0.123 (0.165) -- $10.08 2.88% $ 1,600 1.56%* 1.96%*
1997 9.76 0.338 0.199 (0.337) -- 9.96 5.64% 561 1.55% 2.20%
1996 (10) 9.53 0.200 0.226 (0.196) -- 9.76 7.67%* 113 1.55%* 2.20%*
- ----------
VALUE FUND
- ----------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $16.55 0.050 1.507 (0.052) (3.085) $14.97 12.32% $604,319 1.02%* 1.17%*
1997 13.39 0.137 3.237 (0.145) (0.070) 16.55 25.41% 590,824 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%
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO
TO AVERAGE EXCLUDING TURNOVER
NET ASSETS FEE WAIVERS RATE
====================================================================================
<S> <C> <C> <C>
- -----------------------------------------
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 4.41%* 4.26%* 13%
1997 4.57% 4.42% 30%
1996 4.35% 4.20% 25%
1995 4.34% 4.12% 28%
1994 4.48% 4.36% 24%
1993 (7) 4.25%* 4.11%* 39%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 4.40%* 4.25%* 13%
1997 4.56% 4.41% 30%
1996 4.12% 3.97% 25%
1995 4.33% 4.11% 28%
1994 4.47% 4.33% 24%
1993 (6) 4.27%* 4.03%* 39%
- ----------------------------
VIRGINIA MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 4.47%* 4.07%* --%
1997 4.65% 4.25% 39%
1996 4.61% 4.21% 24%
1995 (5) 4.61%* 4.21%* 35%
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 3.52%* 3.22%* --%
1997 3.73% 3.33% 39%
1996 3.73% 3.33% 24%
1995 (8) 3.76%* 3.36%* 35%
- ----------------------------
MARYLAND MUNICIPAL BOND FUND
- ----------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 4.16%* 3.66%* 9%
1997 4.38% 3.73% 5%
1996 (9) 4.30%* 3.65%* 9%
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 3.21%* 2.81%* 9%
1997 3.44% 2.79% 5%
1996 (10) 3.42%* 2.77%* 9%
- ----------
VALUE FUND
- ----------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 0.68%* 0.53%* 36%
1997 0.92% 0.77% 100%
1996 1.38% 1.23% 82%
1995 2.16% 2.01% 175%
1994 1.82% 1.82% 116%
1993 1.64% 1.64% 77%
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(6) Commencement of operations for this class May 5, 1993. (9) Commencement of operations for this class March 1, 1996.
(7) Commencement of operations for this class January 11, 1993. (10) Commencement of operations for this class April 25, 1996.
(8) Commencement of operations for this class April 17, 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.
45
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1998 (Unaudited) and for the Years Ended November 30
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
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
VALUE FUND (CONTINUED)
- ----------------------
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $16.64 0.052 1.514 (0.051) (3.085) $15.07 12.30% $ 35,930 1.03%* 1.18%*
1997 13.47 0.136 3.248 (0.143) (0.070) 16.64 25.42% 28,112 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $16.59 (0.001) 1.506 -- (3.085) $15.01 11.89% $ 22,268 1.78%* 2.03%*
1997 13.44 0.037 3.234 (0.051) (0.070) 16.59 24.63% 13,269 1.73% 2.09%
1996 11.64 0.091 2.384 (0.084) (0.591) 13.44 21.81% 5,131 1.68% 2.03%
1995 (6) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $15.96 (0.006) 1.858 (0.007) (0.935) $16.87 12.58% $119,717 1.02%* 1.17%*
1997 13.58 0.037 3.005 (0.041) (0.621) 15.96 23.71% 99,364 1.02% 1.17%
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 (7) 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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $15.80 (0.007) 1.838 (0.006) (0.935) $16.69 12.51% $ 9,847 1.03%* 1.18%*
1997 13.44 0.038 2.983 (0.040) (0.621) 15.80 23.80% 7,900 1.03% 1.18%
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 (11) 9.42 -- 0.320 -- -- 9.74 3.40%* 649 1.36%* 1.80%*
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $15.77 (0.032) 1.777 -- (0.935) $16.58 11.95% $ 2,506 1.98%* 2.03%*
1997 (12) 15.21 (0.016) 0.580 (0.004) -- 15.77 27.07% 432 1.93%* 2.07%*
- -------------------
SPECIAL EQUITY FUND
- -------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $16.45 (0.022) 0.818 -- (2.176) $15.07 6.25% $123,242 1.03%* 1.18%*
1997 13.73 (0.009) 3.114 (0.005) (0.380) 16.45 23.28% 112,403 1.01% 1.16%
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%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $16.45 (0.022) 0.808 -- (2.176) $15.06 6.18% $ 6,373 1.04%* 1.19%*
1997 13.72 (0.011) 3.126 (0.005) (0.380) 16.45 23.38% 5,892 1.02% 1.17%
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, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 $16.18 (0.028) 0.724 -- (2.176) $14.70 5.67% $ 3,218 2.00%* 2.05%*
1997 13.62 (0.063) 3.002 -- (0.380) 16.18 22.22% 2,133 1.93% 2.08%
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%*
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO
TO AVERAGE EXCLUDING TURNOVER
NET ASSETS FEE WAIVERS RATE
=====================================================================================
<S> <C> <C> <C>
- ----------------------
VALUE FUND (CONTINUED)
- ----------------------
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 0.66%* 0.51%* 36%
1997 0.89% 0.74% 100%
1996 1.35% 1.20% 82%
1995 2.14% 1.99% 175%
1994 1.81% 1.79% 116%
1993 (11) 1.51%* 1.51%* 77%
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (0.10%)* (0.35%)* 36%
1997 0.15% (0.20%) 100%
1996 0.71% 0.36% 82%
1995 (6) 1.13%* 0.78%* 175%
- -------------------------
CAPITAL APPRECIATION FUND
- -------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (0.09%)* (0.24%)* 18%
1997 0.27% 0.12% 123%
1996 0.37% 0.22% 86%
1995 0.40% 0.25% 470%
1994 0.17% 0.17% 271%
1993 (7) 0.20%* 0.20%* 133%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (0.10%)* (0.25%)* 18%
1997 0.27% 0.12% 123%
1996 0.36% 0.21% 86%
1995 0.39% 0.24% 470%
1994 0.16% 0.04% 271%
1993 (11) (0.05%)* (0.49%)* 133%
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (1.11%)* (1.16%)* 18%
1997 (12) (0.87%)* (1.01%)* 123%
- -------------------
SPECIAL EQUITY FUND
- -------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (0.32%)* (0.47%)* 103%
1997 (0.07%) (0.22%) 148%
1996 0.39% 0.24% 98%
1995 0.90% 0.75% 81%
1994 0.32% 0.32% 117%
1993 0.06% 0.06% 95%
INVESTORS CLASS A (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (0.33%)* (0.48%)* 103%
1997 (0.08%) (0.23%) 148%
1996 0.40% 0.25% 98%
1995 0.89% 0.74% 81%
1994 0.31% 0.25% 117%
1993 (3) (0.19%)* (0.52%)* 95%
INVESTORS CLASS B (**)
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE YEARS ENDED NOVEMBER 30,:
1998 (1.29%)* (1.34%)* 103%
1997 (1.00%) (1.15%) 148%
1996 (0.47%) (0.62%) 98%
1995 (7) (0.04%)* (0.19%)* 81%
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(3) Commencement of operations for this class May 5, 1993. * Annualized.
(6) Commencement of operations for this class April 5, 1995. ** Total return does not reflect the sales charge
(7) Commencement of operations for this class January 11, 1993. or redemption charge, where applicable.
(11) Commencement of operations for this class May 7, 1993.
(12) Commencement of operations for this class September 2, 1997.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS CRESTFUNDS, INC.
For a Share Outstanding Throughout the Period Ended May 31, 1998 (Unaudited) and for the Period Ended November 30
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
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------
LIFE VISION MAXIMUM GROWTH PORTFOLIO
- ------------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE PERIOD ENDED NOVEMBER 30,:
1998 $ 10.65 0.010 1.084 (0.014) -- $11.73 10.28% $16,793 0.25%* 0.65%*
1997(13) 10.00 0.032 0.650 (0.032) -- 10.65 6.82% 13,712 0.25%* 0.73%*
- ---------------------------------------
LIFE VISION GROWTH AND INCOME PORTFOLIO
- ---------------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE PERIOD ENDED NOVEMBER 30,:
1998 $ 10.51 0.088 0.774 (0.092) (0.010) $11.27 8.23% $20,616 0.25%* 0.57%*
1997(13) 10.00 0.091 0.506 (0.087) -- 10.51 5.97% 22,521 0.25%* 0.59%*
- ------------------------------
LIFE VISION BALANCED PORTFOLIO
- ------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE PERIOD ENDED NOVEMBER 30,:
1998 $ 10.46 0.119 0.690 (0.121) (0.028) $11.12 7.79% $96,875 0.25%* 0.43%*
1997(13) 10.00 0.116 0.454 (0.110) -- 10.46 5.70% 89,442 0.25%* 0.42%*
RATIO OF
NET INVESTMENT
RATIO OF INCOME TO
NET INVESTMENT AVERAGE
INCOME NET ASSETS PORTFOLIO
TO AVERAGE EXCLUDING TURNOVER
NET ASSETS FEE WAIVERS RATE
======================================================================================
<S> <C> <C> <C>
- ------------------------------------
LIFE VISION MAXIMUM GROWTH PORTFOLIO
- ------------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE PERIOD ENDED NOVEMBER 30,:
1998 0.17%* (0.23)%* 34%
1997(13) 0.72%* 0.24%* 34%
- ---------------------------------------
LIFE VISION GROWTH AND INCOME PORTFOLIO
- ---------------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE PERIOD ENDED NOVEMBER 30,:
1998 1.62%* 1.30%* 29%
1997(13) 2.11%* 1.77%* 25%
- ------------------------------
LIFE VISION BALANCED PORTFOLIO
- ------------------------------
TRUST CLASS
FOR THE PERIOD ENDED MAY 31, 1998 (UNAUDITED) AND FOR THE PERIOD ENDED NOVEMBER 30,:
1998 2.19%* 2.02%* 22%
1997(13) 2.66%* 2.49%* 43%
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(13)Commencement of operations June 30, 1997.
* 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.
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS CRESTFUNDS, INC.
May 31, 1998 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 fifteen
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
LIFE VISION PORTFOLIOS
Life Vision Maximum Growth Portfolio
Life Vision Growth and Income Portfolio
Life Vision Balanced Portfolio
The Funds' prospectus provides a description of each Fund's 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 are 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. To the extent these
differences are permanent, adjustments are made to the appropriate equity
accounts in the period that the difference arises. Accordingly, the
following permanent differences, primarily attributable to certain net
operating losses, which for tax purposes have been used to offset net
short-term capital gains, have been reclassified to the following accounts:
ACCUMULATED UNDISTRIBUTED
NET REALIZED NET INVESTMENT
LOSS INCOME
-------------- ----------------
Capital Appreciation $ (2) $ 2
Special Equity (96) 96
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
48
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CRESTFUNDS, INC.
May 31, 1998 Unaudited
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, (formerly Capitoline Investment Services,
Incorporated), is responsible for determining that the value of these
underlying securities remains at least 102% of the resale price. If the
seller defaults, the Fund would suffer a loss to the extent that the
proceeds from the sale of the underlying securities were less than the
resale price.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS--The Financial
Statements have been prepared in conformity with generally accepted
accounting principles which require 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; Maximum Growth Portfolio,
Growth and Income Portfolio, and Balanced Portfolio; .25% of each
Portfolio'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.
ADMINISTRATION AND DISTRIBUTION FEES--SEI Investments Mutual Fund Services
(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 Equity, Bond, and Money Market 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. The Administrator is
entitled to receive a fee of $40,000 annually for each Life Vision
Portfolio. The Administrator has voluntarily agreed to have its fee waived
for each Life Vision Portfolio for a twelve month period following the
commencement of operations.
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.
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) CRESTFUNDS, INC.
May 31, 1998 Unaudited
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 .95% for each Fund, except for the Value Fund for
which the limit is .75%.
TRANSFER AGENT AND CUSTODIAN FEES--Crestar Bank serves as the Company's
transfer agent and dividend disbursing agent and is compensated for those
services monthly by each Fund at an annual rate of .05% of the Fund's
average daily net assets for the Trust Class and .06% of the Fund's average
daily net assets for the Investors Class A and Investors Class B. In
addition, Crestar Bank serves as the Company's custodian and is compensated
at an annual rate of up to .04% of the Equity, Bond, and Money Market
Fund's average daily net assets and up to .03% of each LifeVision
Portfolio's average 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, 1998, for each Fund is as follows:
PURCHASES SALES
(000) (000)
---------- ----------
Limited Term Bond ............................ $ 37,846 $ 44,352
Intermediate Bond ............................ 202,275 195,958
Government Bond .............................. 37,216 24,409
Virginia Intermediate Municipal Bond ......... 24,247 24,281
Virginia Municipal Bond ...................... 5,199 22,138
Maryland Municipal Bond ...................... 4,295 270
Value ........................................ 192,668 247,989
Capital Appreciation ......................... 31,429 20,997
Special Equity ............................... 113,923 110,877
Maximum Growth ............................... 8,018 3,841
Growth and Income ............................ 6,245 7,818
Balanced ..................................... 24,824 18,007
At May 31, 1998, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation on securities at May 31, 1998,
for each Fund is as follows:
NET
APPRECIATION DEPRECIATION APPRECIATION
(000) (000) (000)
---------- ------------ ------------
Limited Term Bond ......... $ 810 $ (50) $ 760
Intermediate Bond ......... 4,360 (165) 4,195
Government Bond ........... 580 (20) 561
Virginia Intermediate
Municipal Bond ......... 9,236 (99) 9,138
Virginia Municipal
Bond ................... 871 (13) 858
Maryland Municipal
Bond ................... 407 (5) 402
Value ..................... 138,925 (10,849) 128,076
Capital Appreciation ...... 33,468 (1,576) 31,891
Special Equity ............ 21,112 (5,240) 15,872
Maximum Growth ............ 942 (288) 654
Growth and Income ......... 945 (208) 737
Balanced .................. 3,854 (941) 2,913
Subsequent to October 31, 1997, Capital Appreciation recognized net capital
losses of $392,369 for tax purposes that have been deferred to 1998. The Funds
also had capital losses carryforward at November 30, 1997, to the extent
provided in the regulations for Federal income tax as follows:
CAPITAL LOSS
CARRYOVER
11/30/97 EXPIRES 2000 EXPIRES 2001
------------ -------------- --------------
Cash Reserve $ 46,160 -- --
Limited Term Bond 1,877,822 -- --
Intermediate Bond 2,140,613 -- --
Government Bond 4,098 -- --
Maryland Municipal Bond 30,436 -- --
50
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded) CRESTFUNDS, INC.
May 31, 1998 Unaudited
EXPIRES EXPIRES EXPIRES EXPIRES
2002 2003 2004 2005
--------- -------- -------- --------
Cash Reserve ........... $ 31,799 $ 14,361 $ -- $ --
Limited Term Bond ...... 784,783 254,023 555,287 283,729
Intermediate Bond ...... 1,279,577 667,656 -- 193,380
Government Bond ........ -- -- 4,098 --
Maryland Municipal
Bond ................ -- -- 25,459 4,977
5. CONCENTRATION OF CREDIT RISK
The Virginia Intermediate Municipal Bond Fund, the Virginia Municipal Bond Fund,
and the Maryland Municipal Bond Fund invest in debt securities in their
respective states. The ability of the issuers of the securities held by the
Funds to meet their obligations may be affected by economic or political
conditions in that state.
- --------------------------------------------------------------------------------
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF THE COMPANY. THE REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE COMPANY, UNLESS
PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. NEITHER THE COMPANY NOR SEI
INVESTMENTS DISTRIBUTIONS 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 DISTRIBUTIONS CO. AND CRESTAR BANK ARE NOT AFFILIATED.
- --------------------------------------------------------------------------------
51
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NOTES
<PAGE>
<PAGE>
CREST
-----
FUNDS
A FAMILY OF MUTUAL FUNDS
MANAGED BY
CRESTAR ASSET MANAGEMENT COMPANY
