the RODNEY SQUARE
STRATEGIC EQUITY FUND
[GRAPHIC OMITTED]
SEMI-ANNUAL REPORT
JUNE 30, 1998
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
PRESIDENT'S MESSAGE
================================================================================
DEAR SHAREHOLDER:
The management of the Rodney Square Strategic Equity Fund (the "Fund") is
pleased to report on the Fund's activities for the six-month period ended June
30, 1998.
ECONOMIC OVERVIEW
The U.S. economy performed admirably in the first half of 1998, producing
positive results in the financial markets. Economic growth was strong, the
unemployment rate fell, and corporate profits rose. These events motivated
investors and stock prices rose to new levels, particularly those of large
capitalization stocks. The bond market also benefited from this favorable
economic environment, and by the end of July, bond yields had fallen to the
lowest levels in 30 years.
MANAGEMENT'S DISCUSSION OF LARGE CAP GROWTH EQUITY PORTFOLIO PERFORMANCE*
The Large Cap Growth Equity Portfolio (the "Portfolio") returned 12.5% for
the six months ended June 30, 1998. The Standard & Poor's 500 Index ("S&P 500"),
an unmanaged, capitalization-weighted index of five hundred publicly traded
stocks, achieved a gain of 17.7% for the same time period. The Russell 2000
Index, comprised of stocks of the smallest 2,000 of the 3,000 largest U.S.
companies based on market capitalization, returned 4.9% for the first half of
1998. For the twelve month period ended June 30, 1998, the Portfolio returned
23.2% versus S&P 500 performance of 30.2% and Russell 2000 performance of 16.5%.
Prior to February 23, 1998, the Portfolio was managed as a combination of
both large and small capitalization securities and its performance for the last
year reflects the relatively wide divergence between the returns on the stocks
of large and small U.S. companies. The Portfolio's investment policy, which was
changed on February 23, 1998, now calls for investments to be made exclusively
in large capitalization equity securities with strong growth characteristics.
Activity in the Portfolio was very high during the first half of 1998 as
the investment manager transformed the Portfolio from a blend of large and small
cap stocks to one comprised solely of large cap securities. At the end of June,
the Portfolio had an average market capitalization of $29.3 billion compared to
$8.2 billion at December 31, 1997. Additionally, the number of holdings in the
Portfolio was reduced from 152 issues at the end of 1997, to 107 by the end of
June. Significant steps were also taken to reduce the Portfolio's exposure in
the technology sector. At the beginning of the year, 43% of the Portfolio was
invested in technology and related industries. By the end of June, this exposure
was reduced to approximately 20%, aligning more favorably with the technology
weighting of the Russell 1000 Growth Index (an unmanaged,
capitalization-weighted index of the growth oriented portion of the 1,000
largest U.S. stocks). Proceeds from the sale of technology issues were
reinvested primarily in healthcare stocks, which increased weighting in this
sector from 10% to 15%, and into retail stocks which increased this sector's
weighting from 8% to 13%.
The Portfolio remains well-diversified across sectors with every broad
economic sector represented. The largest individual holding on June 30, Home
Depot, Inc., represented just 2.9% of total assets. The Portfolio's top ten
holdings as of June 30, representing approximately 20% of the Portfolio's total
assets, are:
LARGE CAP GROWTH PORTFOLIO TOP TEN HOLDINGS PERCENT OF TOTAL ASSETS
Home Depot, Inc 2.9%
Merck & Co., Inc. 2.5%
Worldcom, Inc. 2.2%
Staples, Inc. 2.0%
- -------------
* PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. INVESTMENT RETURNS
AND PRINCIPAL VALUES MAY FLUCTUATE, SO THAT, WHEN REDEEMED, SHARES MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. AN INVESTMENT IN THE FUND IS
NEITHER INSURED NOR GUARANTEED BY WILMINGTON TRUST COMPANY OR ANY OTHER
BANKING INSTITUTION, THE U.S.GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC), THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. RETURNS
ARE HIGHER DUE TO THE ADVISER'S MAINTENANCE OF THE PORTFOLIOS' EXPENSES.
SEE FINANCIAL HIGHLIGHTS ON PAGE 21.
1
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
PRESIDENT'S MESSAGE -- CONTINUED
================================================================================
LARGE CAP GROWTH PORTFOLIO TOP TEN HOLDINGS (CONTINUED) PERCENT OF TOTAL ASSETS
Airtouch Communications, Inc. 2.0%
American International Group 2.0%
Illinois Tool Works 2.0%
Healthsouth Corp. 2.0%
Borders Group 2.0%
Compaq Computer 2.0%
The Portfolio's strategy continues to emphasize the purchase of stocks
judged by Wilmington Trust Company (the "Adviser"), the Portfolio's investment
adviser, to have above-average long-term, sustainable earnings growth rates at
reasonable prices.
NEW PORTFOLIOS
We are pleased to announce that effective June 29, 1998, the following
three new portfolios (the "New Portfolios") of the Fund commenced operations:
Large Cap Value Equity Portfolio This Portfolio seeks superior long-term
growth of capital by investing at least
85% of total assets in large cap U.S.
equity securities that are judged by the
Adviser to be undervalued in the
marketplace relative to underlying
profitability.
Small Cap Equity Portfolio This Portfolio seeks superior long-term
capital appreciation by investing at
least 85% of total assets in small cap
U.S. equity securities that are judged
by the Adviser to either possess strong
growth characteristics or to be
undervalued in the marketplace relative
to underlying profitability.
International Equity Portfolio This Portfolio seeks superior long-term
capital appreciation by investing at
least 85% of total assets in equity
securities of issuers located outside of
the United States.
While only two days of experience as a mutual fund are reflected in this
report, each of the New Portfolios commenced operations with a full complement
of securities received from a corresponding collective investment fund
previously managed by, or under the supervision of, Wilmington Trust Company.
Today, with the addition of the New Portfolios to the Rodney Square Family of
Funds, we are pleased to offer a broadened array of equity, as well as fixed
income and money market funds for your investment consideration. For a copy of
any of the Funds' current prospectuses, which describe the Portfolios mentioned
in this report as well as other funds in the Rodney Square Family of Funds,
please call (800) 336-9970.
We invite your questions and comments and thank you for your investment in
the Fund. We look forward to reviewing our investment outlook and strategy with
you in our next report to shareholders.
Sincerely,
(/S/ Robert J.Chrisian)
Robert J. Christian
President
August 20, 1998
2
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- LARGE CAP GROWTH EQUITY PORTFOLIO
- ----------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 1998 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
================================================================================
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCK -- 97.6%
COMMUNICATION & BROADCASTING -- 4.3%
Airtouch Communications, Inc.* ............... 70,500 $ 4,119,844
Lamar Advertising Co. ........................ 13,050 468,169
Worldcom, Inc.* .............................. 94,000 4,553,125
------------
TOTAL COMMUNICATION & BROADCASTING ....................... 9,141,138
------------
ELECTRIC, GAS & WATER UTILITIES -- 0.6%
U.S. Filter Corp.* ........................... 43,500 1,220,719
------------
FINANCE & INSURANCE -- 12.6%
INSURANCE CARRIERS -- 6.8%
American International Group, Inc. ........... 28,750 4,197,500
Conseco, Inc. ................................ 34,500 1,612,875
Equitable Co., Inc. .......................... 26,000 1,948,375
General Reinsurance Corp. .................... 13,000 3,295,500
Protective Life Corp. ........................ 65,000 2,384,687
Travelers Group, Inc. ........................ 16,749 1,015,408
------------
14,454,345
------------
SAVINGS, CREDIT & OTHER FINANCIAL INSTITUTIONS -- 0.8%
Citicorp ..................................... 5,500 820,875
Household International, Inc. ................ 18,000 895,500
------------
1,716,375
------------
SECURITY & COMMODITY BROKERS, DEALERS & SERVICES -- 2.6%
Merrill Lynch & Co., Inc. .................... 13,000 1,199,250
Raymond James Financial, Inc. ................ 30,000 898,125
SunAmerica, Inc. ............................. 56,250 3,230,859
------------
5,328,234
------------
STATE & NATIONAL BANKS -- 2.4%
BankAmerica Corp. ............................ 21,000 1,815,187
Chase Manhattan Corp. ........................ 12,000 906,000
MBNA Corp. ................................... 17,500 577,500
State Street Corp. ........................... 25,000 1,737,500
------------
5,036,187
------------
TOTAL FINANCE & INSURANCE ................................ 26,535,141
------------
MANUFACTURING -- 35.1%
AIRCRAFT & AEROSPACE -- 2.1%
Allied-Signal, Inc. .......................... 70,000 3,106,250
United Technologies Corp. .................... 15,500 1,433,750
------------
4,540,000
------------
CHEMICAL & ALLIED PRODUCTS -- 3.5%
Air Products & Chemicals, Inc. ............... 70,000 2,800,000
M.A. Hanna Co. ............................... 82,200 1,505,287
Mobil Corp. .................................. 14,000 1,072,750
Sigma Aldrich Corp. .......................... 60,000 2,107,500
------------
7,485,537
------------
VALUE
SHARES (NOTE 2)
------ --------
COMPUTERS & OFFICE EQUIPMENT -- 7.8%
Adaptec, Inc.* ............................... 14,000 $ 200,375
Compaq Computer Corp. ........................ 130,000 3,688,750
Computer Associates International, Inc. ...... 30,250 1,680,766
Dell Computer Corp.* ......................... 30,000 2,784,375
Hewlett-Packard Co. .......................... 54,000 3,233,250
Intel Corp. .................................. 35,000 2,594,375
Microsoft Corp.* ............................. 21,400 2,319,225
-----------
16,501,116
-----------
CONSUMER PRODUCTS -- 1.7%
Fortune Brands, Inc. ......................... 70,000 2,690,625
Procter & Gamble Co. ......................... 9,000 819,562
-----------
3,510,187
-----------
ELECTRONICS -- 0.8%
Analog Devices, Inc.* ........................ 29,600 727,050
Maxim Integrated Products, Inc.* ............. 30,200 956,962
-----------
1,684,012
-----------
FOOD & BEVERAGE -- 1.7%
PepsiCo, Inc. ................................ 85,000 3,500,937
-----------
IRON & STEEL -- 0.7%
Nucor Corp. .................................. 30,000 1,380,000
-----------
MISC. ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES -- 4.2%
General Electric Co. ......................... 38,000 3,458,000
Molex, Inc. (A Shares) ....................... 52,937 1,237,402
Symbol Technologies, Inc. .................... 28,800 1,087,200
Tyco International Ltd. ...................... 48,000 3,024,000
------------
8,806,602
------------
MISC. INDUSTRIAL MACHINERY & EQUIPMENT -- 2.1%
Illinois Tool Works, Inc. .................... 62,000 4,134,625
Varco International, Inc.* ................... 16,200 320,962
------------
4,455,587
------------
MISC. MANUFACTURING INDUSTRIES -- 1.8%
American Home Products Corp. ................. 40,000 2,070,000
Johnson Controls, Inc. ....................... 15,300 874,969
Monsanto Co. ................................. 15,000 838,125
------------
3,783,094
------------
OIL FIELD MACHINERY & EQUIPMENT -- 1.9%
Camco International, Inc. .................... 8,800 685,300
Dresser Industries, Inc. ..................... 20,000 881,250
Schlumberger Ltd. ............................ 36,000 2,459,250
------------
4,025,800
------------
PHARMACEUTICAL PREPARATIONS -- 5.6%
Abbott Laboratories .......................... 55,000 2,248,125
Chiron Corp.* ................................ 50,000 784,375
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- LARGE CAP GROWTH EQUITY PORTFOLIO
- ----------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ --------
Genetech, Inc.* .............................. 20,000 $ 1,357,500
Johnson & Johnson Co. ........................ 45,000 3,318,750
Scherer RP Corp.* ............................ 15,100 1,338,237
Schering-Plough Corp. ........................ 21,500 1,969,937
Smithkline Beecham PLC-ADR ................... 15,000 907,500
------------
11,924,424
------------
PRECISION INSTRUMENTS & MEDICAL SUPPLIES -- 1.2%
Baxter International, Inc. ................... 18,000 968,625
Boston Scientific Corp.* .................... 10,000 716,250
Medtronic, Inc. .............................. 15,000 956,250
------------
2,641,125
------------
TOTAL MANUFACTURING ...................................... 74,238,421
------------
OIL & GAS -- 1.1%
BJ Services Co.* ............................. 12,400 360,375
Enron Oil & Gas Co. .......................... 100,000 2,025,000
------------
TOTAL OIL & GAS .......................................... 2,385,375
------------
SERVICES -- 27.9%
AMUSEMENT & RECREATIONAL SERVICES -- 2.9%
Carnival Corp., (A Shares) ................... 30,000 1,188,750
Mirage Resorts, Inc.* ........................ 105,000 2,237,812
Warner-Lambert Co. ........................... 39,000 2,705,625
------------
6,132,187
------------
BUSINESS SERVICES -- 8.8%
Automatic Data Processing, Inc. .............. 45,500 3,315,812
Corrections Corporation of America* .......... 73,000 1,715,500
Equifax, Inc. ................................ 27,700 1,005,856
First Data Corp. ............................. 43,000 1,432,438
Gartner Group, Inc.* ......................... 35,000 1,225,000
Halliburton Co. .............................. 24,500 1,091,781
Interpublic Group of Cos., Inc. .............. 30,000 1,820,625
Merck & Co., Inc. ............................ 39,000 5,216,250
Williams Cos., Inc. .......................... 54,000 1,822,500
------------
18,645,762
------------
COMPUTER SERVICES -- 10.0%
Acxiom Corp.* ................................ 77,800 1,940,138
American Management Systems,
Inc.* ...................................... 38,100 1,140,619
Cisco Systems, Inc.* ......................... 21,000 1,933,313
Cognizant Corp.* ............................. 46,500 2,929,500
Fiserv, Inc.* ................................ 33,618 1,427,714
Network Associates, Inc.* .................... 60,000 2,872,500
Oracle Corp.* ................................ 90,000 2,210,625
SCI Systems, Inc.* ........................... 23,200 872,900
Shared Medical Systems Corp. ................. 30,000 2,203,125
VALUE
SHARES (NOTE 2)
------ --------
Sterling Commerce, Inc.* ..................... 20,000 $ 970,000
Sun Microsystems, Inc.* ...................... 20,000 868,750
SunGard Data Systems, Inc.* .................. 47,600 1,826,650
------------
21,195,834
------------
MEDICAL & HEALTH SERVICES -- 3.6%
HBO & Co. .................................... 60,000 2,115,000
Healthsouth Corp.* ........................... 149,000 3,976,438
Tenet Healthcare Corp.* ...................... 50,500 1,578,125
------------
7,669,563
------------
PERSONAL SERVICES -- 0.8%
Service Corp. International .................. 21,900 938,963
Stewart Enterprises, Inc. .................... 29,100 774,788
------------
1,713,751
------------
SANITARY SERVICES -- 1.8%
Allied Waste Industries, Inc.* ............... 28,400 681,600
USA Waste Services, Inc.* .................... 60,715 2,997,803
------------
3,679,403
------------
TOTAL SERVICES ........................................... 59,036,500
------------
WHOLESALE & RETAIL TRADE -- 16.0%
MISC. RETAIL STORES -- 5.0%
Borders Group, Inc.* ......................... 100,000 3,700,000
Costco Companies, Inc.* ...................... 40,000 2,522,500
Dollar General Corp. ......................... 37,500 1,483,594
Family Dollar Stores, Inc. ................... 150,000 2,775,000
------------
10,481,094
------------
MISC. WHOLESALE -- 2.9%
Sara Lee Corp. ............................... 35,000 1,957,813
Staples, Inc.* .............................. 143,500 4,152,531
------------
6,110,344
------------
RETAIL APPAREL & ACCESSORY STORES -- 1.3%
Linens 'N Things, Inc.* ...................... 75,000 2,292,188
Stage Stores, Inc.* ......................... 7,400 334,850
------------
2,627,038
------------
RETAIL BUILDING MATERIAL -- 3.4%
Home Depot, Inc. ............................. 72,500 6,022,031
Lowe's Cos., Inc. ............................ 30,000 1,216,875
------------
7,238,906
------------
RETAIL EATING & DRINKING PLACES -- 1.1%
Starbucks Corp.* ............................. 45,000 2,404,688
------------
RETAIL FURNITURE & APPLIANCE STORES -- 0.5%
Williams Sonoma, Inc.* ....................... 35,800 1,138,888
------------
WHOLESALE CHEMICALS & DRUGS -- 1.0%
Cardinal Health, Inc. ........................ 21,300 1,996,875
------------
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- LARGE CAP GROWTH EQUITY PORTFOLIO
- -----------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ --------
WHOLESALE ELECTRONIC EQUIPMENT -- 0.8%
Tech Data Corp.* ............................. 40,000 $ 1,715,000
------------
TOTAL WHOLESALE & RETAIL TRADE ........................... 33,712,833
------------
TOTAL COMMON STOCK
(COST $175,266,588) .................................... 206,270,127
------------
SHORT TERM INVESTMENTS -- 2.4%
Sansom Street Fund
(Money Market Portfolio) ................... 2,470,544 2,470,544
Temp Cash Fund (Dollar Series) ............... 2,470,544 2,470,544
------------
TOTAL SHORT TERM INVESTMENTS
(COST $4,941,088) ...................................... 4,941,088
------------
TOTAL INVESTMENTS
(COST $180,207,676) -- 100.0% ................................. 211,211,215
OTHER ASSETS AND LIABILITIES, NET -- 0.0% ........................ 105,207
------------
NET ASSETS -- 100.0% ............................................. $211,316,422
============
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- LARGE CAP VALUE EQUITY PORTFOLIO
- ---------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 1998 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
================================================================================
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCK -- 94.5%
COMMUNICATION & BROADCASTING -- 1.9%
Telefonos de Mexico SA - ADR ................. 37,700 $ 1,811,956
------------
ELECTRIC, GAS & WATER UTILITIES -- 15.4%
BEC Energy ................................... 27,000 1,120,500
Coastal Corp. ................................ 18,400 1,284,550
Consolidated Edison, Inc. .................... 48,600 2,238,638
Consolidated Natural Gas Co. ................. 46,500 2,737,688
Entergy Corp. ................................ 70,100 2,015,375
FPL Group, Inc. .............................. 22,000 1,386,000
GPU, Inc. .................................... 31,500 1,191,094
Texas Utilities Co. .......................... 65,400 2,722,275
------------
TOTAL ELECTRIC, GAS & WATER UTILITIES .................... 14,696,120
------------
FINANCE & INSURANCE -- 14.1%
Aetna, Inc. .................................. 34,000 2,588,250
Allmerica Financial Corp. .................... 22,500 1,462,500
American General Corp. ....................... 35,100 2,498,681
Chubb Corp. .................................. 15,500 1,245,813
MBIA, Inc. ................................... 35,400 2,650,575
Safeco Corp. ................................. 47,600 2,162,825
TIG Holdings, Inc. ........................... 35,200 809,600
------------
TOTAL FINANCE & INSURANCE ................................ 13,418,244
------------
MANUFACTURING -- 34.6%
CHEMICALS & ALLIED PRODUCTS -- 1.5%
Great Lakes Chemical Corp. ................... 37,800 1,490,737
------------
CONSUMER PRODUCTS -- 4.9%
American Greetings Corp. ..................... 42,400 2,159,750
Fortune Brands, Inc. ......................... 65,905 2,533,223
------------
4,692,973
------------
ELECTRONICS -- 10.2%
AMP, Inc. .................................... 67,100 2,306,563
Avnet, Inc. .................................. 31,767 1,737,258
Harris Corp. ................................. 47,996 2,144,821
Raytheon Co. (A shares) ...................... 45,400 2,616,175
Tektronix, Inc. .............................. 26,250 928,594
------------
9,733,411
------------
IRON & STEEL -- 2.3%
LTV Corp. .................................... 228,400 2,184,075
------------
MISC. MANUFACTURING INDUSTRIES -- 7.1%
Cooper Industries, Inc. ...................... 43,100 2,367,806
Genuine Parts Co. ............................ 55,000 1,900,938
Johnson Controls, Inc. ....................... 43,900 2,510,531
------------
6,779,275
------------
VALUE
SHARES (NOTE 2)
------ --------
PAPER & PAPER PRODUCTS -- 1.2%
International Paper Co. ...................... 27,000 $ 1,161,000
------------
PETROLEUM REFINING -- 2.5%
Ultramar Diamond Shamrock Corp. .............. 74,850 2,362,453
------------
PHARMACEUTICAL PREPARATIONS -- 2.6%
Pharmacia & Upjohn, Inc. ..................... 54,200 2,499,975
------------
RUBBER & PLASTICS -- 2.3%
Cooper Tire & Rubber Co. ..................... 105,400 2,173,875
------------
TOTAL MANUFACTURING ...................................... 33,077,774
------------
MINING -- 3.8%
COAL -- 1.9%
Cyprus Amax Minerals Co. ..................... 133,050 1,762,912
------------
OIL & GAS EXPLORATION -- 1.9%
Kerr-McGee Corp. ............................. 32,000 1,852,000
------------
TOTAL MINING ............................................. 3,614,912
------------
REAL ESTATE INVESTMENT TRUSTS -- 3.4%
Post Properties, Inc. ........................ 51,400 1,978,900
Security Capital Pacific Trust* .............. 56,500 1,271,250
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS ...................... 3,250,150
------------
SERVICES -- 7.4%
BUSINESS SERVICES -- 0.9%
Olsten Corp. ................................. 79,100 884,931
------------
COMPUTER SERVICES -- 1.3%
Stratus Computer, Inc.* ...................... 50,600 1,280,812
------------
MEDICAL & HEALTH SERVICES -- 5.2%
Allegiance Corp. ............................. 47,600 2,439,500
Beverly Enterprises, Inc.* ................... 180,400 2,491,775
------------
4,931,275
------------
TOTAL SERVICES ........................................... 7,097,018
------------
WHOLESALE & RETAIL TRADE -- 13.9%
MISC. RETAIL STORES -- 6.6%
Dillards, Inc. (A shares) .................... 72,700 3,012,506
Pep Boys ..................................... 90,800 1,719,525
Toys "R" Us, Inc.* ........................... 68,300 1,609,319
------------
6,341,350
------------
MISC. WHOLESALE -- 2.2%
Unisource Worldwide, Inc. ................... 190,100 2,055,456
------------
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- LARGE CAP VALUE EQUITY PORTFOLIO
- ---------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ --------
RETAIL EATING & DRINKING PLACES -- 2.9%
Darden Restaurants ........................... 80,900 $ 1,284,288
Lone Star Steakhouse & Saloon, Inc.* ......... 109,100 1,506,944
------------
2,791,232
------------
RETAIL FOOD STORES -- 2.2%
Supervalu, Inc. .............................. 47,400 2,103,375
------------
TOTAL WHOLESALE & RETAIL TRADE ........................... 13,291,413
------------
TOTAL COMMON STOCK
(COST $82,092,326) ..................................... 90,257,587
------------
SHORT TERM INVESTMENTS -- 5.2%
Sansom Street Fund
(Money Market Portfolio) ................... 2,504,694 2,504,694
Temp Cash Fund (Dollar Series) ............... 2,504,695 2,504,695
------------
TOTAL SHORT TERM INVESTMENTS
(COST $5,009,389) ...................................... 5,009,389
------------
TOTAL INVESTMENTS
(COST $87,101,715) -- 99.7% ................................... 95,266,976
OTHER ASSETS AND LIABILITIES, NET -- 0.3% ........................ 284,966
------------
NET ASSETS -- 100.0% ............................................. $ 95,551,942
============
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- SMALL CAP EQUITY PORTFOLIO
- ---------------------------------------------------------------------
INVESTMENTS / JUNE 30, 1998 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
================================================================================
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCK -- 97.9%
COMMUNICATION & BROADCASTING -- 0.3%
Advanced Communications Group,
Inc.* ...................................... 10,000 $ 69,375
Primus Telecommunications Group,
Inc.* ...................................... 9,000 170,438
------------
TOTAL COMMUNICATION & BROADCASTING ....................... 239,813
------------
ELECTRIC, GAS & WATER UTILITIES -- 3.4%
Central Hudson Gas & Electric ................ 9,200 422,050
Commonwealth Energy Systems .................. 11,500 434,125
Nevada Power Co. ............................. 23,500 605,125
Northwest Natural Gas Co. .................... 24,800 693,625
Rochester Gas and Electric Corp. ............. 17,000 542,937
------------
TOTAL ELECTRIC, GAS & WATER UTILITIES .................... 2,697,862
------------
FINANCE & INSURANCE -- 7.7%
INSURANCE CARRIERS -- 4.0%
Guaranteed Life Companies Inc. ............... 19,800 433,125
HCC Insurance Holdings, Inc. ................. 22,000 484,000
Life USA Holding, Inc. ....................... 38,100 492,919
Protective Life Corp. ........................ 19,200 704,400
PXRE Corp. ................................... 19,700 591,000
RenaissanceRe Holdings Limited ............... 11,238 520,460
------------
3,225,904
------------
SAVINGS, CREDIT & OTHER FINANCIAL INSTITUTIONS -- 0.8%
JSB Financial, Inc. .......................... 11,000 644,187
------------
SECURITY & COMMODITY BROKERS, DEALERS & SERVICES -- 2.1%
ARM Financial Group, Inc.,
(A Shares) ................................. 34,500 763,312
T & W Financial Corp.* ....................... 30,000 753,750
Waddell & Reed Financial, Inc. ............... 5,000 119,687
------------
1,636,749
------------
STATE & NATIONAL BANKS -- 0.8%
Commonwealth Bancorp, Inc. ................... 27,200 623,900
------------
TOTAL FINANCE & INSURANCE ................................ 6,130,740
------------
MANUFACTURING -- 40.4%
AIRCRAFT & AEROSPACE -- 2.0%
Triumph Group, Inc.* ......................... 37,000 1,554,000
------------
CHEMICAL & ALLIED PRODUCTS -- 1.7%
Bush Boake Allen, Inc.* ...................... 23,200 680,050
Cambrex Corp. ................................ 20,000 525,000
TETRA Technologies, Inc.* .................... 9,700 160,050
------------
1,365,100
------------
VALUE
SHARES (NOTE 2)
------ --------
COMPUTERS & OFFICE EQUIPMENT -- 2.0%
Data General Corp.* .......................... 47,500 $ 709,531
Hyperion Software Corp.* ..................... 25,000 712,500
QLogic Corp.* ................................ 5,000 178,437
------------
1,600,468
------------
CONSUMER PRODUCTS -- 0.6%
Gibson Greetings, Inc. ....................... 19,800 495,000
------------
ELECTRONICS -- 3.2%
Analog Devices, Inc.* ........................ 15,100 370,894
Burr-Brown Corp.* ............................ 24,975 524,475
Lattice Semiconductor Corp.* ................. 9,000 255,656
Marshall Industries* ......................... 20,600 561,350
Maxim Integrated Products, Inc.* ............. 16,000 507,000
Sensormatic Electronics Corp.* ............... 22,000 308,000
------------
2,527,375
------------
FOOD AND BEVERAGE -- 0.7%
Chiquita Brands International, Inc. .......... 37,000 520,312
------------
IRON & STEEL -- 1.4%
Commercial Metals Co. ........................ 15,900 488,925
Shiloh Industries, Inc.* ..................... 32,100 650,025
------------
1,138,950
------------
MISC. ELECTRICAL EQUIPMENT & SUPPLIES -- 1.0%
Littlefuse, Inc.* ............................ 20,000 505,000
Spectrian Corp.* ............................. 19,500 315,656
------------
820,656
------------
MISC. INDUSTRIAL MACHINERY & EQUIPMENT -- 3.2%
Applied Industrial Technologies, Inc. ........ 22,875 470,367
Cognex Corp.* ................................ 18,800 347,800
DT Industries, Inc. .......................... 26,000 630,500
Global Industrial Technologies, Inc.* ........ 39,500 567,812
Titan International, Inc.* ................... 31,000 527,000
------------
2,543,479
------------
MISC. MANUFACTURING INDUSTRIES -- 6.4%
3D Systems Corp.* ............................ 9,200 90,275
Advance Lighting Technologies,
Inc.* ...................................... 20,300 471,975
Borge-Warner Automotive, Inc. ................ 9,500 456,594
Brown & Sharpe Manufacturing Co.,
(A Shares)* ................................ 34,100 409,200
Cavalier Homes, Inc. ......................... 13,125 169,805
Commonwealth Industries, Inc. ................ 28,100 281,000
Griffon Corp.* ............................... 41,700 534,281
Harman International Industries .............. 16,910 651,035
Hayes Lemmerz International, Inc.* ........... 7,000 278,250
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- SMALL CAP EQUITY PORTFOLIO
- ---------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ --------
International Speedway Corp.,
(A Shares) ................................. 17,000 $ 483,437
Juno Lighting, Inc. .......................... 34,100 805,612
Lawson Products, Inc. ........................ 5,000 128,750
Watts Industries, Inc. ....................... 18,600 388,275
------------
5,148,489
------------
OIL FIELD MACHINERY & EQUIPMENT -- 1.2%
Camco International, Inc. .................... 12,000 934,500
------------
OIL FIELD SERVICES -- 0.5%
Pool Energy Service Co.* ..................... 27,200 401,200
------------
PAPER & PAPER PRODUCTS -- 0.6%
Glatfelter (P.H.) Co. ........................ 29,400 464,887
------------
PETROLEUM REFINING -- 0.8%
Tesoro Petroleum* ............................ 38,200 606,425
------------
PHARMACEUTICAL PREPARATIONS -- 2.4%
Cellegy Pharmaceuticals* ..................... 25,000 139,062
Roberts Pharmaceuticals* ..................... 43,300 995,900
Scherer RP Corp.* ............................ 9,000 797,625
------------
1,932,587
------------
PRECISION INSTRUMENTS & MEDICAL SUPPLIES -- 6.4%
Anika Therapeutics Inc.* ..................... 3,240 47,385
Closure Medical Corp.* ....................... 15,000 373,125
Conmed Corp.* ................................ 35,700 821,100
Cryolife Inc.* ............................... 32,000 504,000
Haemonetics Corp.* ........................... 33,000 528,000
Mentor Corp. ................................. 28,000 679,000
Protein Design Lab, Inc.* .................... 30,000 722,812
Respironics, Inc.* ........................... 11,800 183,638
Theragenics Corp.* ........................... 46,000 1,198,875
Vivus, Inc.* ................................. 14,000 84,438
------------
5,142,373
------------
RUBBER & PLASTICS -- 0.9%
Ball Corp. ................................... 18,700 751,506
------------
TELECOMMUNICATIONS EQUIPMENT -- 4.1%
Allen Telecom, Inc.* ......................... 21,300 247,612
Anadigics, Inc.* ............................. 15,100 205,737
Black Box Corp.* ............................. 16,700 554,231
Coherent Communications Systems,
Corp.* ..................................... 12,000 561,750
Glenayre Technologies* ....................... 41,200 442,900
Microwave Power Devices, Inc.* ............... 15,900 107,325
Network Equipment Technologies* .............. 38,000 596,125
Xylan Corp.* ................................. 20,000 596,250
------------
3,311,930
------------
VALUE
SHARES (NOTE 2)
------ --------
TEXTILES & APPAREL -- 1.3%
Unifirst Corp. ............................... 20,000 $ 500,000
Wellman, Inc. ................................ 25,600 580,800
------------
1,080,800
------------
TOTAL MANUFACTURING ...................................... 32,340,037
------------
OIL & GAS -- 1.5%
Devon Energy Corp. ........................... 15,000 524,063
Energen Corp. ................................ 33,600 676,200
------------
TOTAL OIL & GAS .......................................... 1,200,263
------------
REAL ESTATE INVESTMENT TRUSTS -- 1.7%
American Health Properties, Inc. ............. 20,300 507,500
Developers Diversified Realty
Corp.* ..................................... 9,500 372,281
Kilroy Realty Corp. .......................... 20,500 512,500
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS ...................... 1,392,281
------------
SERVICES -- 22.0%
BUSINESS SERVICES -- 3.8%
CDI Corp.* ................................... 12,500 334,375
Inacom Corp.* ................................ 18,900 600,075
Norrell Corp. ................................ 34,600 689,838
SOS Staffing Services, Inc.* ................. 24,000 421,500
The Profit Recovery Group
International, Inc.* ....................... 35,000 977,813
------------
3,023,601
------------
COMPUTER SERVICES -- 9.6%
Acxiom Corp.* ................................ 55,700 1,389,019
Boole & Babbage Inc.* ........................ 22,612 539,862
Ceridian Corp.* .............................. 9,200 540,500
Computer Task Group, Inc. .................... 22,200 743,700
Factset Research Systems, Inc.* .............. 17,200 559,000
Fiserv, Inc.* ................................ 30,000 1,274,063
Intergraph Corp.* ............................ 41,000 351,063
Mastech Corp.* ............................... 26,200 736,875
Network Associates, Inc.* .................... 6,250 299,219
SunGard Data Systems, Inc.* .................. 30,000 1,151,250
XcelleNet, Inc.* ............................. 5,800 130,138
------------
7,714,689
------------
MEDICAL & HEALTH SERVICES -- 3.6%
Genesis Health Ventures, Inc.* ............... 23,000 575,000
Healthplan Services Corp. .................... 29,200 511,000
Integrated Health Services, Inc. ............. 21,500 806,250
NovaCare, Inc.* .............................. 40,100 471,175
Orthodontic Centers of America,
Inc.* ...................................... 24,000 502,500
------------
2,865,925
------------
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- SMALL CAP EQUITY PORTFOLIO
- ---------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ --------
PERSONAL SERVICES -- 3.9%
Alternative Living Services, Inc.* ........... 31,000 $ 837,000
F.Y.I., Inc.* ................................ 10,200 290,700
ITT Educational Services, Inc.* .............. 15,000 483,750
Shurgard Storage Centers, Inc. ............... 18,200 505,050
Stewart Enterprises, Inc. .................... 36,300 966,488
------------
3,082,988
------------
SANITARY SERVICES -- 1.1%
Allied Waste Industries, Inc.* ............... 37,900 909,600
------------
TOTAL SERVICES ............................. 17,596,803
------------
TRANSPORTATION -- 4.8%
Air Express International Corp. .............. 34,580 925,015
Coach USA, Inc.* ............................. 10,000 456,250
Consolidated Freightways Corp.* .............. 35,100 489,206
Pittston Burlington Group .................... 22,100 343,931
Roadway Express, Inc. ........................ 8,000 151,000
Sea Containers, Ltd. ......................... 25,544 977,058
Simon Transportation Services, Inc.* ......... 34,000 227,375
Yellow Corp.* ................................ 14,400 267,300
------------
TOTAL TRANSPORTATION ..................................... 3,837,135
------------
WHOLESALE & RETAIL TRADE -- 16.1%
MISCELLANEOUS RETAIL STORES -- 4.8%
A.C. Moore Arts & Crafts, Inc.* .............. 36,000 585,000
Barnes & Noble, Inc.* ........................ 13,800 516,638
Borders Group, Inc.* ......................... 15,000 555,000
Longs Drug Stores, Inc. ...................... 22,800 658,350
O'Reilly Automotive, Inc.* ................... 43,400 1,562,400
------------
3,877,388
------------
RETAIL APPAREL & ACCESSORY STORES -- 2.5%
Big Dog Holdings, Inc.* ...................... 50,000 256,250
Brown Group, Inc. ............................ 32,100 637,988
Linens 'N Things, Inc. ....................... 35,200 1,075,800
------------
1,970,038
------------
RETAIL BUILDING MATERIAL -- 0.9%
Hughes Supply, Inc. .......................... 19,300 706,863
------------
RETAIL EATING & DRINKING PLACES -- 1.4%
Bob Evans Farms, Inc. ........................ 31,700 671,644
Checkers Drive-In Restaurants* ............... 3,093 918
Mortons Restaurant Group, Inc.* .............. 20,000 481,250
------------
1,153,812
------------
RETAIL FOOD STORES -- 0.7%
Ingles Markets, Inc., (A Shares) ............. 37,700 546,650
------------
VALUE
SHARES (NOTE 2)
------ --------
RETAIL FURNITURE & APPLIANCE STORES -- 2.9%
Heilig-Meyers Co. ............................ 46,500 $ 572,531
Springs Industries, Inc., (A Shares) ......... 9,700 447,413
Williams Sonoma, Inc.* ....................... 39,200 1,247,050
------------
2,266,994
------------
WHOLESALE - CHEMICALS & DRUGS -- 0.6%
AmeriSource Health Corp.,
(A Shares)* ................................ 7,500 492,656
------------
WHOLESALE MISCELLANEOUS -- 2.3%
A.M. Castle & Co. ............................ 16,700 367,400
Daisytek International Corp.* ................ 20,800 529,100
Nash-Finch Company ........................... 29,100 438,319
Watsco, Inc. ................................. 15,000 527,813
------------
1,862,632
------------
TOTAL WHOLESALE & RETAIL TRADE ........................... 12,877,033
------------
TOTAL COMMON STOCK
(COST $61,615,204) ..................................... 78,311,967
------------
SHORT TERM INVESTMENTS -- 1.9%
Sansom Street Fund
(Money Market Portfolio) ................... 749,362 749,362
Temp Cash Fund (Dollar Series) ............... 749,362 749,362
------------
TOTAL SHORT TERM INVESTMENTS
(COST $1,498,724) ...................................... 1,498,724
------------
TOTAL INVESTMENTS -- 99.8%
(COST $63,113,928) ............................................. 79,810,691
OTHER ASSETS AND LIABILITIES, NET -- 0.2% ........................ 141,830
------------
NET ASSETS -- 100.0% ............................................. $ 79,952,521
============
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- INTERNATIONAL EQUITY PORTFOLIO
- -------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 1998 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
================================================================================
<TABLE>
<CAPTION>
VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ ----------
<S> <C> <C> <C>
COMMON STOCK (94.0%)
ARGENTINA (0.7%)
YPF Sociedad Anonima - ADR Oil & Gas Exploration ..................... 15,200 $ 456,950
----------
AUSTRALIA (1.7%)
AMP Limited* Health Insurance .......................... 3,800 44,474
Australia & New Zealand Bank Group Ltd. Banking ................................... 63,000 434,601
National Australia Bank Ltd. Banking ................................... 25,200 332,388
Publishing & Broadcasting Ltd. Communication & Broadcasting .............. 35,000 150,632
QBE Insurance Group Ltd. Insurance Carriers ........................ 38,000 134,129
----------
1,096,224
----------
AUSTRIA (1.5%)
OMV AG Oil Field Machinery & Equipment ........... 2,200 294,684
RHI AG Miscellaneous Manufacturing Industries .... 8,600 416,489
Voest-Alpine Stahl AG Iron & Steel .............................. 6,000 240,491
----------
951,664
----------
BELGIUM (0.9%)
Barco NV Electronic Equipment ...................... 2,000 558,989
----------
CANADA (1.8%)
Canadian National Railway Co. Transportation ............................ 5,160 274,125
Imasco Ltd. Diversified - Consumer Products ........... 20,400 376,637
Royal Bank of Canada Banking ................................... 8,400 505,529
----------
1,156,291
----------
CHILE (0.3%)
Enersis S.A.-ADR Electric, Gas & Water Utilities ........... 6,600 161,288
----------
DENMARK (1.2%)
BG Bank AS Banking ................................... 6,000 371,612
Danisco AS Food & Beverage ........................... 6,100 409,800
----------
781,412
----------
FINLAND (3.3%)
Kemira Oyj Chemical & Allied Products ................ 20,300 209,790
Nokia Oyj (A Shares) Telecommunications Equipment .............. 4,900 360,368
Nokia Corp.-ADR (A Shares) Telecommunications Equipment .............. 5,700 413,606
Pohjola Group Insurance Co. (B Shares) Insurance Carriers ........................ 4,200 208,986
Sampo Insurance Co. PLC (A Shares) Insurance Carriers ........................ 15,280 724,107
UPM-Kymmene Oyj Paper & Paper Products .................... 7,000 192,655
----------
2,109,512
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- INTERNATIONAL EQUITY PORTFOLIO
- -------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ ----------
<S> <C> <C> <C>
FRANCE (8.3%)
Accor SA Diversified - Lodging & Travel Services ............ 1,011 $ 282,931
Alcatel Alsthom Telecommunications Equipment ....................... 2,135 434,696
Axa Insurance Carriers ................................. 6,164 693,268
Bouygues SA Building & Construction ............................ 395 71,735
Canal Plus Communication & Broadcasting ....................... 995 185,965
Carrefour Supermarche SA Retail Food Stores ................................. 364 230,283
Christian Dior SA Consumer Products .................................. 657 82,695
Compagnie de Saint Gobain Industrial Materials ............................... 2,761 511,920
Compagnie Financiere de Paribas Savings, Credit & Other Financial Institutions ..... 3,190 341,369
Credit Commercial de France Banking ............................................ 1,616 136,047
Elf Aquitaine SA Petroleum Refining ................................. 2,120 298,047
France Telecom SA Telecommunications ................................. 3,005 207,257
Danone Food and Beverage .................................. 821 226,365
Lafarge SA Building Materials ................................. 2,000 206,747
Lagardere SCA Diversified - Business & Consumer Services ......... 3,467 144,333
Louis Vuitton Moet Hennessy Diversified - Consumer Products .................... 854 170,912
Rhodia SA* Electronic Equipment ............................... 1,593 44,423
Rhone-Poulenc SA Chemical & Allied Products ......................... 4,605 259,725
Schneider SA Electronic Equipment ............................... 2,939 234,351
Societe Television Francaise 1 Communication & Broadcasting ....................... 962 149,089
Suez Lyonnaise des Eaux Diversified - Industrial & Financial Services ...... 1,806 297,215
Thomson CSF Electronic Equipment ............................... 3,756 142,884
----------
5,352,257
----------
GERMANY (9.5%)
Allianz AG Insurance Carriers ................................. 993 327,327
BASF AG Chemical & Allied Products ......................... 5,378 254,743
Bayerische Vereinsbank AG Banking ............................................ 4,955 421,374
BHF-Bank AG Banking ............................................ 4,076 154,343
Daimler-Benz AG Automobiles ........................................ 3,700 362,819
Deutsche Telekom AG - ADR* Telecommunications ................................. 3,226 88,715
Deutsche Telekom AG Telecommunications ................................. 6,350 171,324
Dresdner Bank AG Banking ............................................ 4,513 243,273
Heidelberger Druckmaschinen AG Printing & Publishing Machinery .................... 761 63,240
Hoechst AG Chemical & Allied Products ......................... 13,699 683,800
Mannesmann AG Misc. Industrial Machinery & Equipment ............. 3,946 403,994
Muenchener Rueckversicherung AG Insurance Carriers ................................. 724 358,986
Phoenix AG Rubber & Plastics .................................. 14,800 339,861
RWE AG Diversified - Oil & Chemical ....................... 4,829 286,257
SAP AG Computer Services .................................. 1,810 1,098,015
Schering AG Pharmaceutical Preparations ........................ 1,925 226,837
Siemens AG Diversified - Industrial & ConsumerProducts ........ 1,755 106,757
VEBA AG Electric, Gas & Water Utilities .................... 3,080 209,880
Viag AG Electric, Gas & Water Utilities .................... 479 323,751
----------
6,125,296
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- INTERNATIONAL EQUITY PORTFOLIO
- -------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ ----------
<S> <C> <C> <C>
HONG KONG (2.0%)
Anhui Expressway Co., Ltd. Transportation .................................. 154,000 $ 15,502
Cheung Kong Holdings, Ltd. Real Estate ..................................... 21,000 103,258
China Telecom, Ltd.* Telecommunications .............................. 10,000 17,358
Citic Pacific, Ltd. Diversified - Industrial & Financial Services ... 25,000 44,202
Cosco Pacific, Ltd. Transportation .................................. 38,000 13,609
Esprit Holdings, Ltd. Retail Apparel & Accessory Stores ............... 536,000 162,559
First Pacific Co., Ltd. Diversified - Industrial & Financial Services ... 5,985 2,510
GZI Transport, Ltd. Transportation .................................. 72,000 16,261
HSBC Holdings PLC Banking ......................................... 9,160 224,018
Hutchinson Whampoa, Ltd. Diversified - Industrial & Financial Services ... 21,000 110,846
Jardine Matheson Holdings, Ltd.* Diversified - Industrial & Financial Services ... 10,400 28,080
Jiangsu Expressway Co., Ltd. Transportation .................................. 80,000 15,177
Kerry Properties, Ltd. Real Estate ..................................... 41,000 30,160
National Mutual Asia,Ltd Insurance Carriers .............................. 315,000 201,230
New World Development Co., Ltd. Real Estate ..................................... 39,000 75,498
New World Infrastructure, Ltd.* Transportation .................................. 24,000 27,566
Shenzhen Expressway Co., Ltd. Transportation .................................. 94,000 17,348
Sichuan Expressway Co. Transportation .................................. 146,000 13,943
Sun Hung Kai Properties, Ltd. Real Estate ..................................... 9,000 38,213
Television Broadcasts, Ltd. Communication & Broadcasting .................... 34,000 89,952
Zhejiang Expressway Co., Ltd. Transportation .................................. 96,000 16,106
----------
1,263,396
----------
IRELAND (3.9%)
Bank of Ireland Banking ......................................... 49,399 1,009,437
Elan Corp. - ADR* Pharmaceutical Systems .......................... 3,100 199,369
Independent Newspapers PLC Printing & Publishing ........................... 71,981 386,547
Irish Life PLC Insurance Carriers .............................. 95,000 874,562
----------
2,469,915
----------
ISRAEL (1.0%)
ECI Telecommunications, Ltd.* Telecommunications Equipment .................... 10,200 386,325
Orbotech, Ltd.* Electronic Equipment ............................ 6,600 240,075
----------
626,400
----------
ITALY (5.8%)
Assicurazioni Generali Insurance Carriers .............................. 12,760 414,913
Banca Commerciale Italiana Banking ......................................... 14,400 86,114
Banca di Roma* Banking ......................................... 56,000 116,565
Banco Intesa SPA Banking ......................................... 12,100 67,697
Credito Italiano SPA Banking ......................................... 15,500 81,138
Ente Nazionale Idrocarburi SPA Petroleum Refining .............................. 46,100 302,138
Fiat SPA Automobiles ..................................... 35,200 154,064
Istituto Bancario San Paolo di Torino Banking ......................................... 36,000 519,479
Istituto Mobiliare Italiano SPA Banking ......................................... 14,300 225,254
Istituto Nazionale delle Assicurazioni Insurance Carriers .............................. 77,100 219,040
Pirelli SPA Miscellaneous Manufacturing Industries .......... 180,000 562,009
Telecom Italia SPA Telecommunications .............................. 93,547 688,623
Telecom Italia SPA di Risp Telecommunications .............................. 65,000 314,661
----------
3,751,695
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ ----------
<S> <C> <C> <C>
JAPAN (7.2%)
Bridgestone Corp. Rubber & Plastics ................................... 5,000 $ 118,168
Canon, Inc. Computers & Office Equipment ........................ 6,000 136,182
Daiwa Securities Co., Ltd. Security & Commodity Brokers, Dealers & Services .... 28,000 120,445
FamilyMart Co. Miscellaneous Retail Stores ......................... 7,700 292,942
Fujitsu Ltd. Computers & Office Equipment ........................ 9,000 94,679
Honda Motor Co., Ltd. Automobiles ......................................... 13,000 462,730
Keyence Corp. Electronic Equipment ................................ 600 65,281
Matsushita Electric Industrial Co., Ltd. Electronic Equipment ................................ 8,000 128,544
Minebea Co., Ltd. Electronic Equipment ................................ 10,000 99,506
Mitsui Trust & Banking Co., Ltd. Banking ............................................. 83,000 195,561
Nichiei Co., Ltd. Savings, Credit & Other Financial Institutions ...... 1,550 105,429
Nintendo Co., Ltd. Games & Toys ........................................ 1,800 166,661
Nippon Telegraph & Telephone Corp. Telecommunications .................................. 42,000 348,020
Nomura Securities Co., Ltd. Security & Commodity Brokers, Dealers & Services .... 12,000 139,640
SMC Corp. Miscellaneous Electrical Machinery .................. 1,200 91,220
Sony Corp. Electronic Equipment ................................ 4,200 361,638
Sony Corp. (Morgan Stanley CPS)* Electronic Equipment ................................ 125 222,969
Sumitomo Electric Industries Telecommunications Equipment ........................ 5,000 50,546
Takeda Chemical Industries Pharmaceutical Preparations ......................... 20,000 531,758
Takefuji Corp. Savings, Credit & Other Financial Institutions ...... 1,500 69,172
TDK Corp. Computers & Office Equipment ........................ 4,000 295,421
Teijin Ltd. Textiles & Apparel .................................. 27,000 81,709
Tokyo Electron Ltd. Electronic Equipment ................................ 2,000 61,246
Yamanouchi Pharmaceutical Co. Ltd. Pharmaceutical Preparations ......................... 5,000 104,118
Yasuda Fire & Marine Insurance Co., Ltd. Insurance Carriers .................................. 69,000 293,331
----------
4,636,916
----------
MEXICO (1.6%)
Grupo Collado SA* Iron & Steel ........................................ 120,000 186,957
Grupo Financiero Banorte SA (B Shares)* Security & Commodity Brokers, Dealers & Services .... 284,200 307,413
Panamerican Beverages, Inc.-ADR Food and Beverage ................................... 6,200 194,913
Desc Sa de CV-ADR Savings, Credit & Other Financial Institutions ...... 12,300 244,463
Tubos de Acero de Mexico SA Iron & Steel ........................................ 5,900 75,594
----------
1,009,340
----------
NETHERLANDS (9.1%)
ABN AMRO Holding NV Banking ............................................. 9,100 212,937
Aegon NV Insurance Carriers .................................. 17,822 1,550,714
Akzo Nobel NV Chemical & Allied Products .......................... 830 184,506
Baan Co. NV* Computer Services ................................... 10,800 388,100
Benckiser NV (B Shares)* Consumer Products ................................... 3,600 221,392
Elsevier NV Printing & Publishing ............................... 11,520 173,857
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- INTERNATIONAL EQUITY PORTFOLIO
- -------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ ----------
<S> <C> <C> <C>
Heineken Holdings Food and Beverage ........... 3,453 $ 113,730
Koninklijke Bols Wessanen NV Food and Beverage ........... 16,300 234,778
Buhrmann NV Paper & Paper Products ...... 18,300 472,294
Koninklijke KPN NV Telecommunications .......... 7,500 288,686
New Holland NV Farm Machinery .............. 11,000 215,875
Royal Philips Electronics NV Electronic Equipment ........ 4,800 403,496
Royal Dutch Petroleum Co. Petroleum Refining .......... 2,960 164,136
TNT Post Group NV* Transportation .............. 7,500 191,720
Unilever NV Consumer Products ........... 2,900 230,093
Koninklijke Van Ommeren NV Transportation .............. 4,000 167,927
Verenigd Bezit NV VNU Printing & Publishing ....... 18,000 653,912
----------
5,868,153
----------
NEW ZEALAND (0.8%)
Telecom Corp. of New Zealand, Ltd. Telecommunications .......... 119,000 490,464
----------
NORWAY (0.6%)
Orkla ASA (B Shares) Food & Beverage ............. 17,700 372,520
----------
PHILIPPINES (0.0%)
Ayala Corporation Real Estate ................. 7,550 1,946
Ayala Land, Inc. Real Estate ................. 9,375 2,698
----------
4,644
----------
PORTUGAL (1.1%)
Jeronimo Martins SGPS SA Retail Food Stores .......... 3,800 182,553
Portugal Telecom SA Telecommunications .......... 10,260 543,771
----------
726,324
----------
SINGAPORE (0.6%)
City Developments, Ltd. Real Estate ................. 15,000 41,906
Development Bank of Singapore, Ltd. Banking ..................... 26,000 143,890
Elec & Eltek International Co., Ltd. Electronic Equipment ........ 58,000 196,040
----------
381,836
----------
SOUTH AFRICA (0.3%)
Sasol, Ltd. Oil & Gas Exploration ....... 37,000 215,780
----------
SOUTH KOREA (0.3%)
Samsung Display Devices Co. Electronic Equipment ........ 125 3,414
SK Telecom Co., Ltd. - ADR Telecommunications .......... 35,000 194,688
----------
198,102
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- INTERNATIONAL EQUITY PORTFOLIO
- -------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ ----------
<S> <C> <C> <C>
SPAIN (4.3%)
Actividades de Construccion y Servicios SA Transportation Equipment ....................... 12,600 $ 379,012
Banco Santander SA Banking ........................................ 34,680 889,144
Repsol SA Oil & Gas Exploration .......................... 7,500 413,972
Repsol SA-ADR Oil & Gas Exploration .......................... 3,000 165,000
Telefonica SA Telecommunications ............................. 8,182 378,930
Vallehermoso SA Real Estate .................................... 15,000 552,616
----------
2,778,674
----------
SWEDEN (4.6%)
AGA AB (B Shares) Chemical & Allied Products ..................... 5,900 90,258
Astra AB (B Shares) Pharmaceutical Preparations .................... 11,200 223,299
Autoliv, Inc. Automobile Parts ............................... 7,500 237,188
Bure Investment Aktiebolaget AB Diversified - Investment Companies ............. 11,000 175,174
Ericsson LM (B Shares) Telecommunications Equipment ................... 9,600 280,478
Nordbanken Holding AB Banking ........................................ 21,070 154,558
Pharmacia & Upjohn, Inc. Pharmaceutical Preparations .................... 5,000 230,095
Skandia Forsakring AB Insurance Carriers ............................. 26,840 383,671
Svenska Handelsbanken (B Shares) Banking ........................................ 13,000 570,536
Swedish Match AB Tobacco Products ............................... 90,000 299,061
Trelleborg AB (B Shares) Diversified - Industrial Products .............. 23,500 309,406
----------
2,953,724
----------
SWITZERLAND (6.4%)
Ciba Specialty Chemicals AG Chemical & Allied Products ..................... 1,543 198,113
Clariant AG Chemical & Allied Products ..................... 519 341,823
Credit Suisse Group Banking ........................................ 1,651 367,358
Nestle SA Food and Beverage .............................. 368 787,526
Novartis AG (Bearer Shares) Pharmaceutical Preparations .................... 355 591,195
Novartis AG Pharmaceutical Preparations .................... 410 682,248
Sig Holding AG Misc. Industrial Machinery & Equipment ......... 800 651,367
United Bank of Switzerland AG Banking ........................................ 510 189,635
Zurich Versicherungs AG Insurance Carriers ............................. 460 293,563
----------
4,102,828
----------
UNITED KINGDOM (15.2%)
Amvescap PLC Savings,Credit & Other Financial Institutions .. 38,000 370,908
BAA PLC Transportation ................................. 47,338 511,024
Bank of Ireland Banking ........................................ 16,000 329,162
Barclays PLC Banking ........................................ 8,600 247,953
BOC Group PLC Chemical & Allied Products ..................... 11,061 150,688
British Aerospace PLC Aircraft & Aerospace ........................... 71,200 546,468
British Airways PLC Transportation ................................. 11,270 121,944
British Energy PLC Electric, Gas & Water Utilities ................ 43,000 375,947
Bunzl Plc Paper & Paper Products ......................... 57,000 268,195
Carlton Communications PLC Communication & Broadcasting ................... 53,176 474,675
Charter PLC Misc. Industrial Machinery & Equipment ......... 28,300 296,297
Cookson Group PLC Misc. Industrial Machinery & Equipment ......... 109,000 374,645
Diageo PLC Food and Beverage .............................. 31,912 378,041
Diageo PLC (B Shares) Food and Beverage .............................. 1,088 9,304
General Electric Co. PLC Misc. Electrical Machinery & Equipment ......... 31,848 274,460
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- INTERNATIONAL EQUITY PORTFOLIO
- -------------------------------------------------------------------------
INVESTMENTS (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ ----------
<S> <C> <C> <C>
Glaxo Wellcome PLC Pharmaceutical Preparations ................ 8,125 $ 243,883
Greencore Group PLC Food and Beverage .......................... 59,000 315,013
Imperial Chemical Industries PLC Chemcial & Allied Products ................. 6,745 108,264
Imperial Tobacco Group PLC Tobacco Products ........................... 57,100 419,671
Lloyds TSB Group PLC Banking .................................... 23,301 325,407
National Westminster Bank PLC Banking .................................... 18,100 323,441
Orange PLC* Communication & Broadcasting ............... 32,487 344,199
Pearson PLC Printing & Publishing ...................... 14,243 260,934
Pilkington PLC Misc. Industrial Machinery & Equipment ..... 40,443 74,902
PowerGen PLC Electric, Gas & Water Utilities ............ 8,066 111,433
Reckitt & Colman PLC Consumer Products .......................... 16,000 305,403
Reuters Group PLC Information Services ....................... 24,750 282,874
Rio Tiuto PLC Miscellaneous Metal Ores ................... 8,066 90,842
Shell Transport & Trading Co. PLC Petroleum Refining ......................... 9,589 67,517
Siebe PLC Misc. Electrical Machinery & Equipment ..... 20,906 418,232
Smithkline Beecham PLC Pharmaceutical Preparations ................ 15,827 192,642
WPP Group PLC Advertising ................................ 126,691 833,911
Zeneca Group PLC Pharmaceutical Preparations ................ 7,678 329,493
-----------
9,777,772
-----------
TOTAL COMMON STOCK
(COST $49,452,122) ........................................................... 60,378,366
-----------
PREFERRED STOCK (1.6%)
GERMANY (1.1%)
Fresenius AG Pharmaceutical Preparations ................ 1,666 310,120
SAP AG Computers & Office Equipment ............... 579 393,585
-----------
703,705
-----------
BRAZIL (0.5%)
Telecomunicacoes de Sao Paulo SA Telecommunications ......................... 950,000 226,697
Telesp Celular S.A. (B Shares) Telecommunications ......................... 950,000 79,672
-----------
306,369
-----------
TOTAL PREFERRED STOCK
(COST $930,789) .............................................................. 1,010,074
-----------
PRINCIPAL
AMOUNT
--------------
CORPORATE BONDS (0.1%)
GERMANY (0.0%)
Daimler-Benz, 06/14/02 ....................................................... DEM 54 4,984
-----------
JAPAN (0.1%)
Sumitomo Trust & Banking Cayman Capital,
0.50%, 10/01/07 ............................................................ JPY 10,000,000 60,886
-----------
TOTAL CORPORATE BONDS
(COST $90,789) ....................................................................... 65,870
-----------
TOTAL INVESTMENTS (Cost $50,473,700) -- 95.7% .................................................. 61,454,310
OTHER ASSETS AND LIABILITIES, NET -- 4.3% ...................................................... 2,749,717
-----------
NET ASSETS -- 100.0% ........................................................................... $64,204,027
===========
<FN>
* Non-income producing security.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP SMALL CAP INTERNATIONAL
GROWTH EQUITY VALUE EQUITY EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value (Note 2) . $211,211,215 $95,266,976 $79,810,691 $61,454,310
Cash in interest bearing account ............. -- -- -- 2,392,088
Receivables:
Dividends and interest .................... 130,199 192,066 48,570 334,271
Fund shares sold .......................... 181,018 96,822 110,275 --
Foreign taxes ............................. -- -- -- 26,852
Unamortized organizational costs ............. -- 37,741 34,588 49,723
Other assets ................................. 1,378 -- -- --
------------ ----------- ----------- -----------
Total assets .............................. 211,523,810 95,593,605 80,004,124 64,257,244
------------ ----------- ----------- -----------
LIABILITIES:
Due to Manager (Note 4) ...................... 27,226 2,078 1,838 1,971
Payables:
Fund shares redeemed ...................... 173,312 -- 13,535 --
Other accrued expenses (Note 4) .............. 6,850 39,585 36,230 51,246
------------ ----------- ----------- -----------
Total liabilities ......................... 207,388 41,663 51,603 53,217
------------ ----------- ----------- -----------
NET ASSETS ................................... $211,316,422 $95,551,942 $79,952,521 $64,204,027
============ =========== =========== ===========
NET ASSETS CONSIST OF:
Shares of beneficial interest ................ $ 87,877 $ 94,799 $ 79,123 $ 63,565
Additional paid-in capital ................... 162,093,608 87,282,264 63,164,212 53,141,814
Undistributed net investment income (loss) ... (104,190) 9,618 12,423 29,549
Accumulated net realized gain (loss) on:
Investment transactions ................... 18,235,588 -- -- --
Foreign currency transactions ............. -- -- -- (579)
Net unrealized appreciation (depreciation) on:
Investments (Note 3) ...................... 31,003,539 8,165,261 16,696,763 10,980,610
Translation of assets and liabilities in
foreign currencies ..................... -- -- -- (10,932)
------------ ----------- ----------- -----------
NET ASSETS ................................... $211,316,422 $95,551,942 $79,952,521 $64,204,027
============ =========== =========== ===========
Shares of beneficial interest outstanding .... 8,787,659 9,479,887 7,912,252 6,356,487
------------ ----------- ----------- -----------
NET ASSET VALUE, offering and redemption price
per share (Net assets/outstanding shares of
beneficial interest, $0.01 par value) ..... $24.05 $10.08 $10.10 $10.10
====== ====== ====== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
================================================================================
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP SMALL CAP INTERNATIONAL
GROWTH EQUITY VALUE EQUITY EQUITY EQUITY
PORTFOLIO PORTFOLIO(DAGGER) PORTFOLIO(DAGGER) PORTFOLIO(DAGGER)
------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ............................................... $ 189,469 $ 12,104 $ 15,450 $ 34,110
Interest ................................................ 133,675 1,436 452 11
Foreign taxes withheld .................................. -- -- -- (1,078)
----------- -------- -------- --------
323,144 13,540 15,902 33,043
----------- -------- -------- --------
EXPENSES:
Management fee (Note 4) ................................. 318,089 2,876 2,609 2,271
Distribution expenses (Note 4) .......................... 1,396 -- -- --
Custodian fee (Note 4) .................................. 19,708 161 123 161
Transfer Agent fee (Note 4) ............................. 8,679 155 129 103
Administration fee (Note 4) ............................. 46,369 523 435 349
Accounting fee (Note 4) ................................. 3,822 -- -- --
Trustees' fees and expenses (Note 4) .................... 2,521 16 16 16
Professional fees ....................................... 32,326 473 473 473
Registration fees ....................................... 9,164 335 287 237
Other expenses .......................................... 14,752 181 178 184
----------- -------- -------- --------
Total expenses ....................................... 456,826 4,720 4,250 3,794
Management fee waived (Note 4) ....................... (29,492) (798) (771) (300)
----------- -------- -------- --------
Total expenses, net ............................... 427,334 3,922 3,479 3,494
----------- -------- -------- --------
Net investment income (loss) ............................... (104,190) 9,618 12,423 29,549
----------- -------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss)
from:
Investment transactions .............................. 18,235,588 -- -- --
Foreign currency related transactions ................ -- -- -- (579)
Change in unrealized appreciation (depreciation) from:
Investments .......................................... (6,280,392) 737,120 801,806 611,695
Foreign currency related transactions ................ -- -- -- (1,802)
----------- -------- -------- --------
Net gain on investments ................................. 11,955,196 737,120 801,806 609,314
----------- -------- -------- --------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................................... $11,851,006 $746,738 $814,229 $638,863
=========== ======== ======== ========
<FN>
(DAGGER) Commenced operations on June 29, 1998
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP SMALL CAP INTERNATIONAL
GROWTH EQUITY VALUE EQUITY EQUITY EQUITY
PORTFOLIO PORTFOLIO(DAGGER) PORTFOLIO(DAGGER) PORTFOLIO(DAGGER)
------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss) ......................... $ (104,190) $ 9,618 $ 12,423 $ 29,549
Net realized gain (loss) on:
Investment transactions ........................... 18,235,588 -- -- --
Foreign currency transactions ..................... -- -- -- (579)
Change in unrealized appreciation (depreciation) from:
Investments .................................... (6,280,392) 737,120 801,806 611,695
Foreign currency related transactions .......... -- -- -- (1,802)
------------ ----------- ----------- -----------
Net increase in net assets resulting
from operations ...................................... 11,851,006 746,738 814,229 638,863
------------ ----------- ----------- -----------
Increase in net assets from Fund share
transactions (Note 5) ................................ 108,020,276 94,805,204 79,138,292 63,565,164
------------ ----------- ----------- -----------
Increase in net assets .................................. 119,871,282 95,551,942 79,952,521 64,204,027
Net Assets:
Beginning of period .................................. 91,445,140 -- -- --
------------ ----------- ----------- -----------
End of period ........................................ $211,316,422 $95,551,942 $79,952,521 $64,204,027
============ =========== =========== ===========
FOR THE YEAR ENDED DECEMBER 31, 1997
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss .................................. $ (720,844)
Net realized gain on investment transactions ......... 12,134,827
Net change in unrealized appreciation of
investments during the year ....................... 8,815,986
------------
Net increase in net assets resulting
from operations ...................................... 20,229,969
------------
Distributions to shareholders from:
Net capital gain ..................................... (11,758,959)
------------
Increase in net assets from Fund share
transactions (Note 5) ................................ 6,800,389
------------
Increase in net assets .................................. 15,271,399
------------
NET ASSETS:
Beginning of year .................................... 76,173,741
------------
End of year .......................................... $ 91,445,140
============
<FN>
(DAGGER) Commenced operations on June 29, 1998.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- LARGE CAP GROWTH EQUITY PORTFOLIO
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
================================================================================
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
<TABLE>
<CAPTION>
FOR THE
SIX-MONTH
PERIOD ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 1998(DAGGER) -----------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD ........ $21.37 $19.22 $17.41 $15.14 $16.39 $15.56
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Net investment loss 1 ...................... (0.01) (0.19) (0.15) (0.10) (0.03) (0.03)
Net realized and unrealized gain (loss)
on investments .......................... 2.69 5.44 4.37 4.38 (0.02) 2.29
------ ------ ------ ------ ------ ------
Total from investment operations ..... 2.68 5.25 4.22 4.28 (0.05) 2.26
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
From net realized gain on investments ...... -- (3.10) (2.41) (2.01) (1.20) (1.43)
------ ------ ------ ------ ------ ------
NET ASSET VALUE - END OF PERIOD ............... $24.05 $21.37 $19.22 $17.41 $15.14 $16.39
====== ====== ====== ====== ====== ======
TOTAL RETURN .................................. 12.54%2 27.50% 24.25% 28.43% (0.23)% 14.57%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses 3 ................................. 0.91%* 1.38% 1.43% 1.43% 1.38% 1.42%
Net investment loss ........................ (0.22)%* (0.86)% (0.78)% (0.53)% (0.17)% (0.18)%
Portfolio turnover rate ....................... 40.21% 28.05% 34.84% 49.12% 37.05% 44.38%
Net assets at end of period (000 omitted) ..... $211,316 $91,445 $76,174 $66,311 $65,267 $66,091
<FN>
(DAGGER) Effective February 23, 1998, the adviser for Large Cap Growth Portfolio
changed to Wilmington Trust Company ("WTC"), and with the change in adviser
the investment objective of the Portfolio was changed. Currently the
Portfolio seeks superior long-term growth of capital by investing in large
cap U.S.equity securities that are judged by the adviser to possess strong
growth characteristics.
1 The net investment loss per share for the years ended December 31, 1996 and
1997 was calculated using average shares outstanding method.
2 Unannualized.
3 Effective February 23, 1998, WTC has elected to waive its advisory fees or
reimburse expenses to the extent that the Portfolio's expenses (excluding
taxes, extraordinary expenses, brokerage commissions and interest) exceed
an annual rate of 0.75% of the Portfolio's average daily net assets at
least through April 1999. Without waivers or reimbursements the annual
total operating expense ratio would have been 0.97% of the Portfolio's
average daily net assets for the six-month period ended June 30, 1998.
* Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- LARGE CAP VALUE EQUITY PORTFOLIO
- ---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- CONTINUED
================================================================================
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
FOR THE PERIOD
JUNE 29, 1998(DAGGER)
THROUGH
JUNE 30, 1998
(UNAUDITED)
---------------------
NET ASSET VALUE -- BEGINNING OF PERIOD ................... $10.00
------
INVESTMENT OPERATIONS:
Net investment income ................................. --
Net realized and unrealized gain
on investments ..................................... 0.08
------
Total from investment operations ................ 0.08
------
NET ASSET VALUE - END OF PERIOD .......................... $10.08
======
TOTAL RETURN 1 ........................................... 0.80%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses 2 ............................................ 0.75%*
Net investment income ................................. 1.84%*
Portfolio turnover rate .................................. --
Net assets at end of period (000 omitted) ................ $95,552
(DAGGER) Commencement of operations.
1 Unannualized.
2 Expense ratio reflects WTC's undertaking to waive its advisory fees or
reimburse expenses to the extent that the Portfolio's expenses (excluding
taxes, extraordinary expenses, brokerage commissions and interest) exceed
an annual rate of 0.75% of the Portfolio's average daily net assets at
least through April 1999. Without waivers or reimbursements the annual
total operating expense ratio would have been 0.90% of the Portfolio's
average daily net assets.
* Annualized.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- SMALL CAP EQUITY PORTFOLIO
- ---------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- CONTINUED
================================================================================
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
FOR THE PERIOD
JUNE 29, 1998(DAGGER)
THROUGH
JUNE 30, 1998
(UNAUDITED)
---------------------
NET ASSET VALUE -- BEGINNING OF PERIOD ................... $10.00
------
INVESTMENT OPERATIONS:
Net investment income ................................. --
Net realized and unrealized gain
on investments ..................................... 0.10
------
Total from investment operations ................ 0.10
------
NET ASSET VALUE - END OF PERIOD .......................... $10.10
======
TOTAL RETURN 1 ........................................... 1.00%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses 2 ............................................ 0.80%*
Net investment income ................................. 2.86%*
Portfolio turnover rate .................................. --
Net assets at end of period (000 omitted) ................ $79,953
(DAGGER) Commencement of operations.
1 Unannualized.
2 Expense ratio reflects WTC's undertaking to waive its advisory fees or
reimburse expenses to the extent that the Portfolio's expenses (excluding
taxes, extraordinary expenses, brokerage commissions and interest) exceed
an annual rate of 0.80% of the Portfolio's average daily net assets at
least through April 1999. Without waivers or reimbursements the annual
total operating expense ratio would have been 0.98% of the Portfolio's
average daily net assets.
* Annualized.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND -- INTERNATIONAL EQUITY PORTFOLIO
- -------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- CONTINUED
================================================================================
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
FOR THE PERIOD
JUNE 29, 1998(DAGGER)
THROUGH
JUNE 30, 1998
(UNAUDITED)
---------------------
NET ASSET VALUE-- BEGINNING OF PERIOD .................. $10.00
------
INVESTMENT OPERATIONS:
Net investment income ............................... --
Net realized and unrealized gain
on investments ................................... 0.10
------
Total from investment operations .............. 0.10
------
NET ASSET VALUE - END OF PERIOD ........................ $10.10
======
TOTAL RETURN 1 ......................................... 1.00%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses 2 .......................................... 1.00%*
Net investment income ............................... 8.46%*
Portfolio turnover rate ................................ --
Net assets at end of period (000 omitted) .............. $64,204
(DAGGER) Commencement of operations.
1 Unannualized.
2 Expense ratio reflects WTC's undertaking to waive its advisory fees or
reimburse expenses to the extent that the Portfolio's expenses (excluding
taxes, extraordinary expenses, brokerage commissions and interest) exceed
an annual rate of 1.00% of the Portfolio's average daily net assets at
least through April 1999. Without waivers or reimbursements the annual
total operating expense ratio would have been 1.09% of the Portfolio's
average daily net assets.
* Annualized.
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. DESCRIPTION OF THE FUND. The Rodney Square Strategic Equity Fund (the
"Fund"), formerly the Rodney Square Multi-Manager Fund, is a diversified,
open-end, management investment company organized as a Massachusetts business
trust on August 19, 1986, and is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"). The Fund consists of four separate
portfolios (the "Portfolios"): the Large Cap Growth Equity Portfolio,
formerly the Growth Portfolio, the Large Cap Value Equity Portfolio, the
Small Cap Equity Portfolio and the International Equity Portfolio. The Large
Cap Growth Equity Portfolio seeks superior long-term growth of capital by
investing in large cap U.S. equity securities that are judged by the
Portfolio's adviser, Wilmington Trust Company ("WTC" or "Adviser"), to
possess strong growth characteristics. The Large Cap Value Equity Portfolio
(the "Value Portfolio") seeks superior long-term growth of capital by
investing in large cap U.S. equity securities that are judged by WTC to be
undervalued in the marketplace relative to underlying profitability. The
Small Cap Equity Portfolio (the "Small Cap Portfolio") seeks superior
long-term growth of capital by investing in small cap U.S. equity securities
that are judged by WTC to either possess strong growth characteristics or to
be undervalued in the marketplace relative to underlying profitability. The
International Equity Portfolio (the "International Portfolio") seeks superior
long-term capital appreciation by investing primarily in equity securities of
issuers located outside the United States.
Effective February 23, 1998, the Rodney Square Multi-Manager Fund changed its
name to the Rodney Square Strategic Equity Fund and the Growth Portfolio
changed its name to the Large Cap Growth Equity Portfolio (the "Growth
Portfolio"). Also prior to February 23, 1998, the Growth Portfolio sought to
achieve its investment objective by investing at least 65% of total assets in
equity securities without regard to the market capitalization of the issuers
of such securities.
The Value Portfolio, Small Cap Portfolio and International Portfolio
commenced operations on June 29, 1998.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies of the Fund:
SECURITY VALUATION. Portfolio securities, except short-term investments with
remaining maturities of 60 days or less, are valued at their market value as
determined by their last sale price in the principal market in which these
securities are normally traded. Lacking any sales, such securities will be
valued at the mean between the closing bid and ask price. Short-term
investments with remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value, unless the Fund's Board of
Trustees determines that this does not represent fair value. The value of all
other securities is determined in good faith under the direction of the Board
of Trustees.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the
International Portfolio are maintained in U.S. dollars. Foreign currency
amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, assets and liabilities at the
daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and interest
income and certain expenses at the rates of exchange prevailing on the
respective dates of such transactions.
The International Portfolio does not isolate that portion of the results of
operations resulting from changes in foreign exchange rates on investments
from the fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and unrealized
gain or loss from investments.
25
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the International Portfolio books, and
the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value
of assets and liabilities other than investments in securities at the end of
the fiscal period, resulting from changes in exchange rates.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. In connection with portfolio
purchases and sales of securities denominated in a foreign currency, the
International Portfolio may enter into forward foreign currency exchange
contracts. Additionally, from time to time the International Portfolio may
enter into these contracts to hedge certain foreign currency assets. Foreign
currency exchange contracts are recorded at market value. Certain risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts.Realized gains or losses
arising from such transactions are included in net realized gain (loss) from
foreign currency transactions.
FEDERAL INCOME TAXES. The Portfolios are treated as separate entities and
intend to qualify for treatment as "regulated investment companies" under
Subchapter M of the Internal Revenue Code of 1986, as amended, and to
distribute all of their taxable income to their shareholders. Therefore, no
federal income tax provision has been made in the financial statements.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions of net investment income earned
and net capital gains realized by the Portfolios, if any, will be made
annually in December. An additional distribution may be made, if necessary.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation
of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
OTHER. Investment security transactions are accounted for on a trade date
basis. The Portfolios use the specific identification method for determining
realized gain or loss on investments for both financial and federal income
tax reporting purposes. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income and expenses are reported
on the accrual basis.
3. PURCHASES AND SALES OF INVESTMENT SECURITIES. During the period ended June
30, 1998, purchases and sales of investment securities (excluding short-term
investments) by the Portfolios were as follows:
<TABLE>
<CAPTION>
GROWTH PORTFOLIO VALUE PORTFOLIO SMALL CAP PORTFOLIO INTERNATIONAL PORTFOLIO
---------------- --------------- ------------------- -----------------------
<S> <C> <C> <C> <C>
Purchases $42,719,185 $-- $-- $--
Sales 47,634,010 -- -- --
</TABLE>
26
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
The following balances for the Portfolios are as of June 30, 1998:
<TABLE>
<CAPTION>
Cost for Net Tax Basis Tax Basis Gross Tax Basis Gross
Federal Income Unrealized Unrealized Unrealized
Tax Purposes Appreciation Appreciation Depreciation
-------------- ------------- --------------- --------------
<S> <C> <C> <C> <C>
Growth Portfolio $180,207,676 $31,003,539 $32,584,308 $(l,580,769)
Value Portfolio $ 87,101,715 $ 8,165,261 $15,246,461 $(7,081,200)
Small Cap Portfolio $ 63,113,928 $16,696,763 $20,738,770 $(4,042,007)
International Portfolio $ 50,473,700 $10,980,610 $13,541,979 $(2,561,369)
</TABLE>
4. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES. Effective February 23,
1998, Wilmington Trust Company ("WTC"), a wholly owned subsidiary of
Wilmington Trust Corporation, serves as Investment Adviser to the Fund. Under
the Advisory Agreement, WTC directs the investments of each Portfolio in
accordance with that Portfolio's investment objectives, policies and
limitations. In addition, WTC recommends sub-advisers for the International
Equity Portfolio, allocates assets among the sub-advisers, and monitors and
evaluates the sub-advisers' performance. For WTC's services under the
Advisory Agreement, the Growth Portfolio, Value Portfolio, Small Cap
Portfolio and International Portfolio pay a monthly fee calculated daily at
the annual rates of 0.55%, 0.55%, 0.60% and 0.65% , respectively, of the
average daily net assets of each Portfolio. WTC has agreed to waive its fee
or reimburse each Portfolio monthly to the extent that expenses of the
Portfolio (excluding taxes, extraordinary expenses, brokerage commissions and
interest) exceed an annual rate of 0.75% of the average daily net assets of
the Growth Portfolio, 0.75% of the average daily net assets of the Value
Portfolio, 0.80% of the average daily net assets of the Small Cap Portfolio
and 1.00% of the average daily net assets of the International Portfolio.
WTC's fee for the Growth Portfolio for the period February 23, 1998 through
June 30, 1998 amounted to $187,134, of which $29,492 was waived. WTC's fee
for the Value Portfolio, Small Cap Portfolio and International Portfolio for
the period June 29, 1998 through June 30, 1998, amounted to $2,876, $2,609
and $2,271, of which $798, $771 and $300 was waived, respectively.
Prior to February 23, 1998, the Fund employed Rodney Square Management
Corporation ("RSMC"), a wholly owned subsidiary of WTC, to provide asset
management, consulting services and other services to the Fund. For
management services to the Fund, RSMC received an annual fee equal to 1.00%
of the average daily net assets of the Growth Portfolio up to $200 million of
Fund net assets and 0.95% of the average daily net assets in excess of $200
million. RSMC had agreed to waive its fees or reimburse the Growth Portfolio
monthly to the extent that operating expenses (excluding taxes, extraordinary
expenses, brokerage commissions and interest) exceed an annual rate of 1.50%
of average daily net assets. The management fees earned by RSMC for the
period January 1, 1998 through February 23, 1998 amounted to $130,955.
27
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
Effective January 26, 1998, PFPC Inc. ("PFPC"), an indirect wholly owned
subsidiary of PNC Bank Corp., performs certain administrative services for
the Portfolios pursuant to an Administration and Accounting Services
Agreement with the Fund. PFPC also performs accounting services for the
Portfolios, including determining the net asset value per share of each
Portfolio. For the services provided, the Fund pays PFPC an annual fee equal
to the amount derived from the following schedule: 0.10% of each Portfolio's
first $1 billion of average daily net assets; 0.075% of each Portfolio's next
$500 million in average net assets; 0.05% of each Portfolio's next $500
million of average daily net assets; and 0.035% of each Portfolio's average
daily nets assets in excess of $2 billion. In addition, any related
out-of-pocket expenses incurred by PFPC in the provision of services to a
Portfolio are borne by that Portfolio. PFPC's fees for the Growth Portfolio
for the period January 26, 1998 through June 30, 1998 amounted to $40,923.
PFPC's fees for the Value Portfolio, Small Cap Portfolio and International
Portfolio for the period June 29, 1998 through June 30, 1998, amounted to
$523, $435 and $349, respectively.
Prior to January 26, 1998, RSMC served as Administrator to the Fund pursuant
to an Administration Agreement with the Fund on behalf of the Growth
Portfolio. For the services provided, RSMC received a monthly administration
fee from the Fund at an annual rate of 0.09% of the Growth Portfolio's
average daily net assets. The administration fee earned by RSMC for the
Growth Portfolio for the period January 1, 1998 through January 25, 1998,
amounted to $5,446.
Prior to January 26, 1998, RSMC determined the net asset value per share of
the Growth Portfolio and provided accounting services to the Fund pursuant to
an Accounting Services Agreement with the Fund on behalf of the Growth
Portfolio. For its services, RSMC received an annual fee of $45,000, plus an
amount equal to 0.02% of that portion of the Growth Portfolio's average daily
net assets in excess of $100 million. For the period January 1, 1998 through
January 25, 1998, RSMC's fees for accounting services for the Growth
Portfolio amounted to $3,822.
WTC serves as Custodian of the assets of the Growth Portfolio, Value
Portfolio and Small Cap Portfolio. PNC Bank, N.A. serves as sub-custodian to
the assets of these Portfolios, and is paid by WTC out of its fee. Bankers
Trust Company serves as Custodian of the International Portfolio's assets,
and employs foreign sub-custodians to maintain the International Portfolio's
assets outside the United States.
Effective January 26, 1998, PFPC serves as transfer and dividend disbursing
agent to the Fund. For these services, the Fund pays PFPC an annual fee of
0.03% of the Fund's average daily net assets, plus transaction charges and
out-of-pocket expenses. Prior to January 26, 1998, RSMC served as transfer
and dividend disbursing agent to the Fund. For its services, the Fund paid
RSMC $7 per shareholder account per year, plus various other transaction
fees, subject to a minimum of $1,000 per month, plus out-of-pocket expenses.
Pursuant to a Distribution Agreement with the Fund, Rodney Square
Distributors, Inc. ("RSD"), a wholly owned subsidiary of WTC, manages the
Fund's distribution efforts and provides assistance and expertise in
developing marketing plans and materials. Effective January 26, 1998, the
distribution plan adopted by the Fund pursuant to Rule 12b-1 under the 1940
Act was terminated. For the period January 1, 1998 through January 25, 1998,
expenses incurred by the Growth Portfolio under the terminated Rule 12b-1
plan amounted to $1,396.
28
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
The salaries of all officers of the Fund, the Trustees who are "interested
persons" of the Fund, RSMC, RSD, WTC or their affiliates and all personnel of
the Fund, RSMC, RSD or WTC performing services related to research,
statistical and investment activities are paid by RSMC, RSD, WTC or their
affiliates. For the period ended June 30, 1998, the fees and expenses of the
"non-interested" Trustees amounted to $2,521, $16, $16 and $16 for the Growth
Portfolio, Value Portfolio, Small Cap Portfolio and International Portfolio,
respectively.
5. FUND SHARES. At June 30, 1998, there was an unlimited number of shares of
beneficial interest, $0.01 par value, authorized. The following table
summarizes the activity in shares of the Portfolios:
<TABLE>
<CAPTION>
FOR THE SIX-MONTH FOR THE FISCAL
PERIOD ENDED YEAR ENDED
THE GROWTH PORTFOLIO JUNE 30, 1998 DECEMBER 31, 1997
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- -----------
<S> <C> <C> <C> <C>
Shares sold ..................... 145,044 $ 3,416,599 179,170 $ 3,907,003
Shares issued in exchange for
securities transferred in-kind 4,748,731 113,362,975 -- --
Shares issued to shareholders in
reinvestment of distributions -- -- 490,664 10,372,625
Shares redeemed ................. (385,690) (8,759,298) (354,225) (7,479,239)
--------- ------------ --------- -----------
Net increase .................... 4,508,085 $108,020,276 315,609 $ 6,800,389
============ ===========
Shares outstanding:
Beginning of period ............. 4,279,574 3,963,965
--------- ---------
End of period ................... 8,787,659 4,279,574
========= =========
</TABLE>
<TABLE>
<CAPTION>
FOR THE PERIOD JUNE 29, 1998(DAGGER)
THE VALUE PORTFOLIO THROUGH JUNE 30, 1998
------------------------------------
SHARES AMOUNT
------------- --------------
<S> <C> <C>
Shares sold ....................................... 10,029 $ 100,907
Shares issued in exchange for
securities transferred in-kind ................. 9,470,264 94,708,383
Shares redeemed ................................... (406) (4,086)
--------- -----------
Net increase ...................................... 9,479,887 $94,805,204
===========
Shares outstanding:
Beginning of period ............................... --
---------
End of period ..................................... 9,479,887
=========
</TABLE>
29
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
FOR THE PERIOD JUNE 29, 1998(DAGGER)
THE SMALL CAP PORTFOLIO THROUGH JUNE 30, 1998
------------------------------------
SHARES AMOUNT
------------ -------------
<S> <C> <C>
Shares sold ................................................................ 10,928 $ 110,275
Shares issued in exchange for securities transferred in-kind ............... 7,902,665 79,041,552
Shares redeemed ............................................................ (1,341) (13,535)
--------- -----------
Net increase ............................................................... 7,912,252 $79,138,292
===========
Shares outstanding:
Beginning of period ........................................................ --
---------
End of period .............................................................. 7,912,252
=========
</TABLE>
<TABLE>
<CAPTION>
FOR THE PERIOD JUNE 29, 1998(DAGGER)
THE INTERNATIONAL PORTFOLIO THROUGH JUNE 30, 1998
------------------------------------
SHARES AMOUNT
------------ -------------
<S> <C> <C>
Shares issued in exchange for securities transferred in-kind ............... 6,356,487 $ 63,565,164
--------- ------------
Net increase ............................................................... 6,356,487 $ 63,565,164
============
Shares outstanding:
Beginning of period ........................................................ --
---------
End of period .............................................................. 6,356,487
=========
<FN>
(DAGGER) Commencement of operations.
</FN>
</TABLE>
30
<PAGE>
THE RODNEY SQUARE STRATEGIC EQUITY FUND
- ---------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
6. TRANSFERS IN-KIND AND COMMENCEMENT OF NEW PORTFOLIOS. Effective June 29,
1998, certain Wilmington Trust Collective Investment Funds transferred all of
their securities to a corresponding Portfolio of the Fund in exchange for
shares of that portfolio. The transfer of securities was conducted on both a
taxable and tax-free basis. The following table summarizes certain relevant
information of the Fund prior to and immediately after the exchange. The
Value Portfolio, Small Cap Portfolio and International Portfolio are the
accounting survivors and, as such, maintain the operating history of the
applicable Wilmington Trust Collective Investment Fund.
<TABLE>
<CAPTION>
THE WILMINGTON TRUST COLLECTIVE FUND THE RODNEY SQUARE STRATEGIC EQUITY FUND
------------------------------------ ---------------------------------------
UNREALIZED COMBINED
NET ASSET APPRECIATION SHARES NET ASSETS NAV
SHARES AT VALUE AT (DEPRECIATION) ISSUED IN AFTER PER
FUND NAME 6/28/98 6/28/98 AT 06/28/98 PORTFOLIO NAME EXCHANGE EXCHANGE SHARE
--------- --------- --------- -------------- -------------- --------- ---------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Value Stock Fund 2,046,297 $ 94,708,383 $ 7,428,141 Value Port. 9,470,264 $ 94,708,383 $10.00
Growth Stock Fund 1,696,889 113,362,975 30,345,500 Growth Port. 4,748,731 209,657,472 23.87
Small Cap Fund 2,559,982 79,041,552 15,894,957 Small Cap Port. 7,902,665 79,041,552 10.00
International Fund 2,152,552 63,565,164 10,359,785 International Port. 6,356,487 63,565,164 10.00
</TABLE>
31
<PAGE>
TRUSTEES
Eric Brucker
Fred L. Buckner
Robert J. Christian
John J. Quindlen
Nina M. Webb
---------------------------------
OFFICERS
Robert J. Christian, PRESIDENT
Nina M. Webb, VICE PRESIDENT
John J. Kelley, VICE PRESIDENT & TREASURER
Carl M. Rizzo, Esq., SECRETARY
Mary Jane Maloney, ASSISTANT SECRETARY
John C. McDonnell, ASSISTANT TREASURER
---------------------------------
INVESTMENT ADVISER
Wilmington Trust Company
Rodney Square North
1100 N. Market St.
Wilmington, DE 19890-0001
---------------------------------
ADMINISTRATOR,
TRANSFER AGENT AND
ACCOUNTING AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
---------------------------------
DISTRIBUTOR
Rodney Square Distributors, Inc.
Rodney Square North
1100 N. Market St.
Wilmington, DE 19890-0001
---------------------------------
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
---------------------------------
INDEPENDENT AUDITORS
Ernst & Young LLP
---------------------------------
CUSTODIANS
Wilmington Trust Company
Bankers Trust Company
---------------------------------
THIS REPORT IS SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUND. THE REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN
THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
RS19 6/98
