<PAGE>
ANNUAL REPORT
MAY 31, 1998
- ------------------
MONEY MARKET FUNDS
[LOGO] NORWEST ADVANTAGE FUNDS-Registered Trademark-
MONEY MARKET FUNDS
- ---------------------------
Cash Investment Fund
Ready Cash Investment Fund
U.S. Government Fund
Treasury Fund
Municipal Money Market Fund
<PAGE>
TABLE OF CONTENTS MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
A MESSAGE TO OUR SHAREHOLDERS............................... 1
NORWEST ADVANTAGE FUNDS
Independent Auditors' Report....................... 2
Statements of Assets and Liabilities............... 3
Statements of Operations........................... 4
Statements of Changes in Net Assets................ 5
Financial Highlights............................... 6
Notes to Financial Statements...................... 7
Supplementary Information (unaudited).............. 9
Schedules of Investments........................... 10
Cash Investment Fund...................... 10
Ready Cash Investment Fund................ 10
U.S. Government Fund...................... 10
Treasury Fund............................. 11
Municipal Money Market Fund............... 11
Notes to Schedules of Investments.................. 18
CORE TRUST (DELAWARE)
Independent Auditors' Report....................... 20
Statements of Assets and Liabilities............... 21
Statements of Operations........................... 22
Statements of Changes in Net Assets................ 23
Financial Highlights............................... 24
Notes to Financial Statements...................... 25
Schedules of Investments........................... 27
Prime Market Portfolio.................... 27
Money Market Portfolio.................... 28
Notes to Schedules of Investments.................. 30
</TABLE>
[LOGO]
<PAGE>
A MESSAGE TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
July 21, 1998
Dear Valued Shareholder,
We are pleased to present the 1998 Annual Report for
the Norwest Advantage Funds. This report includes the five
Norwest Advantage money market funds.
Norwest Advantage Funds experienced another year of
significant growth, with net assets increasing from $14.7
billion to $20.8 billion as of May 31, 1998. Our success
can be partly attributed to the confidence and support of
our shareholders generated by the continued positive
performance of many of the Norwest Advantage Funds. Of
course, we will continue to provide prudent management to
maintain that confidence.
Events in Southeast Asia dominated headlines during
the past year. Asia's emerging nations were battered by a
currency free fall that began in Thailand and swept across
Malaysia, Indonesia, South Korea, Hong Kong and the
Philippines, sparking a rout from which the region has not
yet recovered. At the same time, Japan's economic and
banking problems sent the country into a severe recession.
While the U.S. economy has felt the impact of the
Asian "flu", our financial markets have proved quite
resilient. Indeed, the combination of low inflation,
declining interest rates and strong consumer spending have
helped our economy grow at a steady rate, with the S&P 500
Composite Stock Price Index climbing nearly 30% during the
fiscal year ending May 31, 1998. Because our underlying
economic fundamentals in the U.S. remain solid, we are
cautiously optimistic that our financial markets will
continue to perform relatively well. Still, investors will
experience volatile equity markets until Asian economies
improve.
One of the most significant effects of developments in
Asia has been the historic "decoupling" of U.S. stock and
bond markets. Deflationary forces, especially evident in
commodity prices, have lowered our overall inflation rate
to very near 1 percent. Therefore, concerns over Fed
tightening have waned, once again.
While the stock market has retreated from recent highs
due to concerns over corporate earnings, the bond market
has staged a remarkable rally in this environment.
Interest rates on 30-year Treasury bonds have declined
from 7 percent in May of last year to less than 6 percent
currently, breaking through levels that many thought were
impenetrable without evidence of an economic slowdown.
Keep in mind that not all global markets are in
turmoil. European markets have surged during the past year
thanks to falling interest rates married with growing
enthusiasm for the EURO. In fact, conversion to the EURO,
which will be introduced January 1, 1999, has accelerated
the movement toward greater competitiveness and
free-market capitalism. As a result, Europe's market
indices have climbed more than a third in the last year.
Market volatility is always unnerving to investors.
Yet volatility underscores the importance of two
tried-and-true investment concepts: diversification to
reduce risk and a long-term outlook to weather market
fluctuations. To meet your investment needs and tolerance
for risk, we offer a wide variety of mutual funds --
including new funds we introduced this year -- along with
personalized service to help you achieve your goals. If
you have questions or need information, please call us at
1-(800) 338-1348 or (612) 667-8833, option 2. Thank you
for choosing Norwest Advantage Funds. We look forward to
working with you in the future.
Sincerely,
/s/ John Y. Keffer
John Y. Keffer
CHAIRMAN, NORWEST ADVANTAGE
FUNDS
[LOGO]
1
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders
Norwest Advantage Funds
We have audited the accompanying statements of assets
and liabilities of Cash Investment Fund, Ready Cash
Investment Fund, U.S. Government Fund, Treasury Fund, and
Municipal Money Market Fund, portfolios of Norwest
Advantage Funds (collectively, the "Funds"), including the
schedules of investments, as of May 31, 1998, and the
related statements of operations for the year then ended,
statements of changes in net assets for each of the years
in the two-year period then ended and financial highlights
for each of the years or periods in the five-year period
ended May 31, 1998. These financial statements and
financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on
these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures
included confirmation of securities owned as of May 31,
1998, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles
used and significant estimates made by management, as well
as evaluating the overall financial statement
presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of the Funds as
of May 31, 1998, the results of their operations for the
year then ended, changes in their net assets for each of
the years in the two-year period then ended and financial
highlights for each of the years or periods in the
five-year period ended May 31, 1998, in conformity with
generally accepted accounting principles.
[LOGO]
Boston, Massachusetts
July 21, 1998
[LOGO]
2
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL
CASH READY CASH U.S. MONEY
INVESTMENT INVESTMENT GOVERNMENT TREASURY MARKET
FUND FUND FUND FUND FUND
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost............... $4,697,500,057 $ 790,042,915 $1,457,223,097 $ 964,447,325 $ 1,020,968,103
Repurchase agreements at cost..... - - 801,000,000 - -
--------------- --------------- --------------- --------------- ---------------
Total investments at value.......... 4,697,500,057 790,042,915 2,258,223,097 964,447,325 1,020,968,103
Cash................................ - - 1,562 36,478 18,042
Receivable for interest and other
receivables....................... 2,454 - 11,394,852 15,834,739 11,239,208
Receivable for securities sold...... - - - 464,898,631 1,009,999
--------------- --------------- --------------- --------------- ---------------
TOTAL ASSETS.......................... 4,697,502,511 790,042,915 2,269,619,511 1,445,217,173 1,033,235,352
--------------- --------------- --------------- --------------- ---------------
LIABILITIES
Payable for investments purchased... - - - - 8,657,937
Payable to Norwest and affiliates
(Note 3).......................... 720,767 163,533 779,590 467,903 323,944
Payable to other related parties
(Note 3).......................... 67,370 98,079 191,389 9,496 20,324
Accrued expenses and other
liabilities....................... 382,151 58,254 124,341 141,737 112,473
Dividends payable................... 10,514,066 5,981 8,316,345 4,082,975 2,357,388
--------------- --------------- --------------- --------------- ---------------
TOTAL LIABILITIES..................... 11,684,354 325,847 9,411,665 4,702,111 11,472,066
--------------- --------------- --------------- --------------- ---------------
NET ASSETS............................ $4,685,818,157 $ 789,717,068 $2,260,207,846 $ 1,440,515,062 $ 1,021,763,286
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
COMPONENTS OF NET ASSETS
Paid in Capital..................... $4,687,724,506 $ 789,736,109 $2,260,547,511 $ 1,440,234,562 $ 1,023,083,024
Undistributed (distributions in
excess of)
net investment income............. (147,521) (3,100) (56,270) 102,005 (198,272)
Accumulated net realized gain (loss)
from investments sold............. (1,758,828) (15,941) (283,395) 178,495 (1,121,466)
--------------- --------------- --------------- --------------- ---------------
NET ASSETS............................ $4,685,818,157 $ 789,717,068 $2,260,207,846 $ 1,440,515,062 $ 1,021,763,286
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
NET ASSETS BY SHARE CLASS
Single class funds.................. $4,685,818,157 $ - $2,260,207,846 $ 1,440,515,062 $ -
Investor Shares..................... - 789,379,802 - - 44,070,642
Exchange Shares..................... - 337,266 - - -
Institutional Shares................ - - - - 977,692,644
--------------- --------------- --------------- --------------- ---------------
NET ASSETS............................ $4,685,818,157 $ 789,717,068 $2,260,207,846 $ 1,440,515,062 $ 1,021,763,286
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
SHARES OF BENEFICIAL INTEREST
Single class funds.................. 4,687,649,667 - 2,260,591,023 1,440,233,278 -
Investor Shares..................... - 789,408,055 - - 44,078,064
Exchange Shares..................... - 337,280 - - -
Institutional Shares................ - - - - 977,681,829
NET ASSET VALUE PER SHARE (Net Assets
divided by Shares of Beneficial
Interest)
All share classes................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
</TABLE>
[LOGO]
See Notes to Financial Statements
3
<PAGE>
STATEMENTS OF OPERATIONS YEAR ENDED MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL
CASH READY CASH U.S. MONEY
INVESTMENT INVESTMENT GOVERNMENT TREASURY MARKET
FUND FUND FUND FUND FUND
------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income............................ $ 29,667,081 $26,939,935 $126,276,176 $63,997,934 $32,934,108
------------- ------------ ------------ ------------ ------------
NET INVESTMENT INCOME ALLOCATED FROM
PORTFOLIOS
Interest income............................ 192,472,772 30,228,652 - - -
Net expenses from Portfolios............... (8,684,882) (2,107,063) - - -
------------- ------------ ------------ ------------ ------------
Net Investment Income allocated from
Portfolios................................ 183,787,890 28,121,589 - - -
------------- ------------ ------------ ------------ ------------
Total Income................................. 213,454,971 55,061,524 126,276,176 63,997,934 32,934,108
------------- ------------ ------------ ------------ ------------
EXPENSES
Advisory (Note 3).......................... 709,326 1,591,095 3,114,327 1,836,566 2,961,387
Management and Administration (Note 3)..... 2,037,558 1,263,708 2,134,700 1,154,682 896,734
Transfer agent (Note 3)
Single class funds....................... 7,957,408 - 5,654,848 2,992,848 -
Investor Shares.......................... - 1,644,437 - - 125,652
Exchange Shares.......................... - 940 - - -
Institutional Shares..................... - 334,229 - - 823,214
Custody (Note 3)........................... 54,942 50,290 241,194 134,714 102,347
Accounting (Note 3)........................ 27,500 44,500 65,500 63,000 95,000
Legal...................................... 53,609 21,168 30,992 16,322 11,979
Registration............................... 458,160 155,240 168,897 167,701 153,320
Audit...................................... 6,408 5,559 13,513 10,919 12,150
Trustees................................... 43,801 16,780 28,319 14,851 10,673
Distribution fees -- Exchange Shares (Note
3)....................................... - 3,759 - - -
Miscellaneous.............................. 290,302 91,651 188,707 107,543 109,297
------------- ------------ ------------ ------------ ------------
TOTAL EXPENSES............................... 11,639,014 5,223,356 11,640,997 6,499,146 5,301,753
Fees waived and expenses reimbursed (Note
4)....................................... (1,840,325) (349,516) (330,954) (993,777) (1,270,532)
------------- ------------ ------------ ------------ ------------
NET EXPENSES................................. 9,798,689 4,873,840 11,310,043 5,505,369 4,031,221
------------- ------------ ------------ ------------ ------------
NET INVESTMENT INCOME........................ 203,656,282 50,187,684 114,966,133 58,492,565 28,902,887
------------- ------------ ------------ ------------ ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments
sold..................................... 1,149 58,609 (48,377) 358,352 172,328
Net realized gain (loss) on investments in
Portfolios............................... (54,501) (10,211) - - -
------------- ------------ ------------ ------------ ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS...... (53,352) 48,398 (48,377) 358,352 172,328
------------- ------------ ------------ ------------ ------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................ $203,602,930 $50,236,082 $114,917,756 $58,850,917 $29,075,215
------------- ------------ ------------ ------------ ------------
------------- ------------ ------------ ------------ ------------
</TABLE>
[LOGO]
See Notes to Financial Statements
4
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS YEARS ENDED MAY 31, 1997 AND 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL
CASH READY CASH U.S. MONEY
INVESTMENT INVESTMENT GOVERNMENT TREASURY MARKET
FUND FUND FUND FUND FUND
---------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
NET ASSETS -- MAY 31, 1996......... $ 1,739,548,936 $ 1,554,262,679 $1,649,720,751 $ 802,270,237 $ 649,456,831
---------------- --------------- --------------- --------------- ---------------
OPERATIONS
Net investment income............ 101,667,555 91,424,632 87,458,129 45,372,947 22,325,144
Net realized gain (loss) on
investments sold............... (28,706) 2,559 37,429 (179,063) (1,206,040)
Net change in unrealized
appreciation (depreciation) on
investments.................... - - - - 1,200,000
---------------- --------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations...... 101,638,849 91,427,191 87,495,558 45,193,884 22,319,104
---------------- --------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Single class funds............. (101,667,555) - (87,458,129) (45,269,658) -
Investor Shares................ - (25,410,929) - - (1,828,190)
Exchange Shares................ - (17,107) - - -
Institutional Shares........... - (65,996,596) - - (20,496,954)
Net capital gains
Single class funds............. - - - (103,289) -
---------------- --------------- --------------- --------------- ---------------
Total distributions to
shareholders................... (101,667,555) (91,424,632) (87,458,129) (45,372,947) (22,325,144)
---------------- --------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS (AT
$1.00 PER SHARE)
Sale of shares
Single class funds............. 10,161,636,220 - 7,060,636,868 3,708,986,665 -
Investor Shares................ - 620,857,448 - - 121,151,683
Exchange Shares................ - 1,259,541 - - -
Institutional Shares........... - 3,780,214,447 - - 1,793,226,504
Reinvestment of distributions
Single class funds............. 84,172,490 - 16,661,503 14,996,298 -
Investor Shares................ - 25,380,468 - - 1,826,002
Exchange Shares................ - 17,199 - - -
Institutional Shares........... - 148,015 - - 3,949,686
Redemption of shares
Single class funds............. (9,837,435,300) - (6,814,482,545) (3,522,377,627) -
Investor Shares................ - (544,106,362) - - (125,382,243)
Exchange Shares................ - (750,549) - - -
Institutional Shares........... - (3,510,169,837) - - (1,753,951,812)
---------------- --------------- --------------- --------------- ---------------
Net increase from capital share
transactions................... 408,373,410 372,850,370 262,815,826 201,605,336 40,819,820
---------------- --------------- --------------- --------------- ---------------
Net increase in net assets....... 408,344,704 372,852,929 262,853,255 201,426,273 40,813,780
---------------- --------------- --------------- --------------- ---------------
NET ASSETS -- MAY 31, 1997......... 2,147,893,640 1,927,115,608 1,912,574,006 1,003,696,510 690,270,611
---------------- --------------- --------------- --------------- ---------------
OPERATIONS
Net investment income............ 203,656,282 50,187,684 114,966,133 58,492,565 28,902,887
Net realized gain (loss) on
investments.................... (53,352) 48,398 (48,377) 358,352 172,328
---------------- --------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations...... 203,602,930 50,236,082 114,917,756 58,850,917 29,075,215
---------------- --------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Single class funds............. (203,656,282) - (114,966,133) (58,492,565) -
Investor Shares................ - (32,585,755) - - (1,571,100)
Exchange Shares................ - (15,813) - - -
Institutional Shares........... - (17,586,116) - - (27,331,787)
Net capital gain
Investor Shares................ - - - - (3,249)
Institutional Shares........... - - - - (58,183)
---------------- --------------- --------------- --------------- ---------------
Total distributions to
shareholders................... (203,656,282) (50,187,684) (114,966,133) (58,492,565) (28,964,319)
---------------- --------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS (AT
$1.00 PER SHARE)
Sale of shares
Single class funds............. 12,012,845,493 - 8,855,872,101 4,446,530,993 -
Investor Shares................ - 659,278,049 - - 81,294,057
Exchange Shares................ - 1,123,635 - - -
Institutional Shares........... - 1,297,000,821 - - 2,529,846,649
Reinvestment of distributions
Single class funds............. 114,097,582 - 18,495,730 18,522,775 -
Investor Shares................ - 32,598,158 - - 1,574,299
Exchange Shares................ - 15,986 - - -
Institutional Shares........... - 40,511 - - 4,917,786
Redemption of shares
Single class funds............. (9,588,965,206) - (8,526,685,614) (4,028,593,568) -
Investor Shares................ - (478,499,142) - - (93,421,410)
Exchange Shares................ - (1,457,455) - - -
Institutional Shares........... - (2,647,547,501) - - (2,192,829,602)
---------------- --------------- --------------- --------------- ---------------
Net increase (decrease) from
capital share transactions..... 2,537,977,869 (1,137,446,938) 347,682,217 436,460,200 331,381,779
---------------- --------------- --------------- --------------- ---------------
Net increase (decrease) in net
assets......................... 2,537,924,517 (1,137,398,540) 347,633,840 436,818,552 331,492,675
---------------- --------------- --------------- --------------- ---------------
NET ASSETS -- MAY 31, 1998......... $ 4,685,818,157 $ 789,717,068 $2,260,207,846 $ 1,440,515,062 $ 1,021,763,286
---------------- --------------- --------------- --------------- ---------------
---------------- --------------- --------------- --------------- ---------------
Undistributed (distributions in
excess of) net investment
income
May 31, 1997................... $ (147,522) $ (3,100) $ (56,270) $ 102,005 $ (136,840)
---------------- --------------- --------------- --------------- ---------------
---------------- --------------- --------------- --------------- ---------------
May 31, 1998................... $ (147,521) $ (3,100) $ (56,270) $ 102,005 $ (198,272)
---------------- --------------- --------------- --------------- ---------------
---------------- --------------- --------------- --------------- ---------------
</TABLE>
[LOGO]
See Notes to Financial Statements
5
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIODS
<TABLE>
<CAPTION>
BEGINNING NET REALIZED DIVIDENDS CAPITAL
NET ASSET NET AND UNREALIZED FROM NET CONTRIBUTION ENDING NET
VALUE PER INVESTMENT LOSS ON INVESTMENT FROM ASSET VALUE
SHARE INCOME INVESTMENTS INCOME ADVISER PER SHARE
--------- ---------- -------------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
CASH INVESTMENT FUND
Year Ended May 31,
1998...................... $1.00 $0.053 $ - $(0.053) $ - $1.00
1997...................... 1.00 0.051 - (0.051) - 1.00
1996...................... 1.00 0.054 - (0.054) - 1.00
1995...................... 1.00 0.049 - (0.049) - 1.00
1994...................... 1.00 0.031 - (0.031) - 1.00
READY CASH INVESTMENT FUND
INVESTOR SHARES
Year Ended May 31,
1998...................... 1.00 0.050 - (0.050) - 1.00
1997...................... 1.00 0.047 - (0.047) - 1.00
1996...................... 1.00 0.051 - (0.051) - 1.00
1995...................... 1.00 0.045 - (0.045) - 1.00
1994...................... 1.00 0.027 - (0.027) - 1.00
EXCHANGE SHARES
Year Ended May 31,
1998...................... 1.00 0.050 (0.008) (0.042) - 1.00
1997...................... 1.00 0.040 - (0.040) - 1.00
1996...................... 1.00 0.043 - (0.043) - 1.00
1995...................... 1.00 0.038 - (0.038) - 1.00
May 9, 1994(b) to May 31,
1994.................... 1.00 0.001 - (0.001) - 1.00
U.S. GOVERNMENT FUND
Year Ended May 31,
1998...................... 1.00 0.051 - (0.051) - 1.00
1997...................... 1.00 0.049 - (0.049) - 1.00
1996...................... 1.00 0.052 - (0.052) - 1.00
1995...................... 1.00 0.047 - (0.047) - 1.00
1994...................... 1.00 0.030 - (0.030) - 1.00
TREASURY FUND
Year Ended May 31,
1998...................... 1.00 0.049 - (0.049) - 1.00
1997...................... 1.00 0.047 - (0.047) - 1.00
1996...................... 1.00 0.050 - (0.050) - 1.00
1995...................... 1.00 0.046 - (0.046) - 1.00
1994...................... 1.00 0.028 - (0.028) - 1.00
MUNICIPAL MONEY MARKET FUND
INVESTOR SHARES
Year Ended May 31,
1998...................... 1.00 0.031 - (0.031) - 1.00
1997...................... 1.00 0.030 - (0.030) - 1.00
1996...................... 1.00 0.033 - (0.033) - 1.00
1995...................... 1.00 0.031 (0.004) (0.031) 0.004 1.00
1994...................... 1.00 0.021 - (0.021) - 1.00
INSTITUTIONAL SHARES
Year Ended May 31,
1998...................... 1.00 0.033 - (0.033) - 1.00
1997...................... 1.00 0.032 - (0.032) - 1.00
1996...................... 1.00 0.035 - (0.035) - 1.00
1995...................... 1.00 0.033 (0.004) (0.033) 0.004 1.00
August 3, 1993(b) to May
31, 1994................ 1.00 0.019 - (0.019) - 1.00
<CAPTION>
RATIOS TO AVERAGE
NET ASSETS NET ASSETS
----------------------------------------- AT END OF
NET PERIOD
NET GROSS INVESTMENT TOTAL (000'S
EXPENSES EXPENSES(a) INCOME RETURN OMITTED)
----------- ------------- ----------- ------ -------------
<S> <C> <C> <C> <C> <C>
CASH INVESTMENT FUND
Year Ended May 31,
1998...................... 0.48%(e) 0.57%(e) 5.29% 5.42% $4,685,818
1997...................... 0.48% 0.49% 5.07% 5.21% 2,147,894
1996...................... 0.48% 0.49% 5.36% 5.50% 1,739,549
1995...................... 0.48% 0.50% 4.87% 4.96% 1,464,304
1994...................... 0.49% 0.49% 3.11% 3.16% 1,381,402
READY CASH INVESTMENT FUND
INVESTOR SHARES
Year Ended May 31,
1998...................... 0.82%(e) 0.82%(e) 4.95% 5.07% 789,380
1997...................... 0.82% 0.83% 4.75% 4.87% 576,011
1996...................... 0.82% 0.87% 5.02% 5.17% 473,879
1995...................... 0.82% 0.91% 4.64% 4.62% 268,603
1994...................... 0.82% 0.92% 2.70% 2.74% 164,138
EXCHANGE SHARES
Year Ended May 31,
1998...................... 1.56%(e) 5.57%(e) 4.21% 4.29% 337
1997...................... 1.57% 5.66% 4.03% 4.09% 655
1996...................... 1.57% 8.24% 4.32% 4.38% 129
1995...................... 1.57% 6.32% 3.62% 3.69% 160
May 9, 1994(b) to May 31,
1994.................... 1.53%(c) 1.85%(c) 2.48%(c) 2.51%(c) 151
U.S. GOVERNMENT FUND
Year Ended May 31,
1998...................... 0.50% 0.51% 5.08% 5.20% 2,260,208
1997...................... 0.49% 0.49% 4.91% 5.04% 1,912,574
1996...................... 0.50% 0.51% 5.13% 5.27% 1,649,721
1995...................... 0.50% 0.52% 4.68% 4.81% 1,159,421
1994...................... 0.47% 0.53% 3.02% 3.07% 1,091,141
TREASURY FUND
Year Ended May 31,
1998...................... 0.46% 0.54% 4.89% 5.00% 1,440,515
1997...................... 0.46% 0.53% 4.74% 4.87% 1,003,697
1996...................... 0.46% 0.56% 4.91% 5.04% 802,270
1995...................... 0.46% 0.57% 4.62% 4.65% 661,098
1994...................... 0.46% 0.58% 2.81% 2.83% 526,483
MUNICIPAL MONEY MARKET FUND
INVESTOR SHARES
Year Ended May 31,
1998...................... 0.65% 0.83% 3.13% 3.18% 44,070
1997...................... 0.65% 0.87% 3.01% 3.08% 54,616
1996...................... 0.65% 0.88% 3.25% 3.31% 57,021
1995...................... 0.65% 0.93% 3.10% 3.13%(d) 47,424
1994...................... 0.65% 0.99% 2.03% 2.09% 33,554
INSTITUTIONAL SHARES
Year Ended May 31,
1998...................... 0.45% 0.59% 3.32% 3.39% 977,693
1997...................... 0.45% 0.70% 3.21% 3.28% 635,655
1996...................... 0.45% 0.72% 3.41% 3.52% 592,436
1995...................... 0.45% 0.74% 3.37% 3.33%(d) 278,953
August 3, 1993(b) to May
31, 1994................ 0.45%(c) 0.77%(c) 2.33%(c) 2.34%(c) 190,356
</TABLE>
(a) During each period, various fees were waived and reimbursed. The ratio of
Gross Expenses to Average Net Assets reflects the expense ratio in the
absence of any waivers and reimbursements (Note 4)
(b) Commencement of operations
(c) Annualized
(d) The total return for 1995 includes the effect of a capital contribution from
the Adviser. Without the capital contribution, the total return would have
been 2.59% for Investor shares and 2.79% for Institutional shares
(e) Includes expenses allocated from the Portfolio(s) in which the Fund invests
[LOGO]
See Notes to Financial Statements
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS MAY 31, 1998
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Norwest Advantage Funds (the "Trust") is organized as a Delaware business trust
and is registered as an open-end management investment company. The Trust
currently has thirty-nine separate investment portfolios. These financial
statements relate to the five money market investment portfolios of the Trust
(each a "Fund"), each of which is a diversified portfolio. The Funds (and
classes thereof) commenced operations on the following dates:
<TABLE>
<S> <C>
Cash Investment Fund................................................................................... October 14, 1987
Ready Cash Investment Fund (Investor Shares)........................................................... January 20, 1988
Ready Cash Investment Fund (Exchange Shares)........................................................... May 9, 1994
Ready Cash Investment Fund (Institutional Shares)...................................................... January 4, 1994
U.S. Government Fund................................................................................... November 16, 1987
Treasury Fund.......................................................................................... December 3, 1990
Municipal Money Market Fund (Investor Shares).......................................................... January 7, 1988
Municipal Money Market Fund (Institutional Shares)..................................................... August 3, 1993
</TABLE>
Each share of each class represents an undivided, proportionate interest in a
Fund. The Trust Instrument authorizes the issuance, by each Fund, of an
unlimited number of shares of beneficial interest without par value. Exchange
Shares are sold only through the exchange privilege available to shareholders of
B class shares of the various fixed income and equity funds of the Trust and are
subject to a contingent deferred sales charge upon redemption. Shareholders of
Institutional Shares and Investor Shares incur no sales charge. The difference
between institutional and investor share classes is the minimum investment
required and the level of transfer agent expenses.
MASTER-FEEDER ARRANGEMENT - Effective August 23, 1997, Cash Investment Fund
began seeking to achieve its investment objective by investing all its
investable assets evenly in two portfolios (each a "Portfolio" and,
collectively, the "Portfolios") of Core Trust (Delaware) ("Core Trust"), a
registered, open-end management investment company. These Portfolios, Prime
Money Market Portfolio and Money Market Portfolio, have identical investment
objectives and investment policies except that Prime Money Market Portfolio
seeks to maintain a rating from a nationally recognized statistical rating
organization ("NRSRO"). Effective August 23, 1997, Ready Cash Investment Fund
began seeking to achieve its investment objective by investing all its
investable assets in Prime Money Market Portfolio. The Funds account for their
investment in a Portfolio as a partnership investment and record daily their
share of the Portfolio's income, expenses and realized and unrealized gain and
loss. This is commonly referred to as a master-feeder arrangement. The financial
statements of the Portfolios are included with this report and should be read in
conjunction with each Fund's financial statements. As of May 31, 1998, the
percentage of Prime Money Market Portfolio and Money Market Portfolio owned by
Cash Investment Fund were 74.8% and 99.0%, respectively. The percentage of Prime
Money Market Portfolio owned by Ready Cash Investment Fund was 25.2%.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates. The following represent significant accounting policies of the Funds:
SECURITY VALUATION - Each Fund determines its net asset value as of 1:00 p.m.,
Pacific time, on each Fund business day. Cash Investment Fund and Ready Cash
Investment Fund record their investments in the Portfolios at value. Valuation
of securities held in the Portfolios is discussed in Note 2 of the Core Trust
Notes to Financial Statements. Securities held by the other Funds are valued by
utilizing the amortized cost method pursuant to Rule 2a-7 under the Investment
Company Act of 1940 ("Act"). Under this method all investments purchased at a
discount or premium are valued by accreting or amortizing, respectively, the
difference between the purchase price and maturity value of the issue over the
period to maturity.
INTEREST INCOME AND EXPENSES - Each Fund accrues its own expenses. Cash
Investment Fund and Ready Cash Investment Fund record daily a prorata share of
the Portfolios' income, expenses and realized gain and loss. Interest income is
recorded on the accrual basis and includes amortization of premiums and
discounts. Expenses of Cash Investment Fund and Ready Cash Investment Fund
include their prorata amounts of expenses of the Portfolios in which they
invest.
DISTRIBUTIONS TO SHAREHOLDERS - Dividends are declared daily, and paid monthly,
to shareholders and net capital gain, if any, is distributed to shareholders at
least annually. Distributions are based on amounts calculated in accordance with
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. These differences are due primarily to differing
treatments of income and gain on various investment securities held by the Fund,
timing differences and differing characterizations of distributions made by the
Funds.
FEDERAL TAXES - Each Fund intends to qualify, and continue to qualify, each year
as a regulated investment company and distribute all its taxable income. In
addition, by distributing in each calendar year substantially all its net
investment income, capital gain and certain other amounts, if any, each Fund
will not be subject to a federal excise tax. Therefore, no federal income or
excise tax provision is required.
[LOGO]
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
REPURCHASE AGREEMENTS - Except for the Treasury Fund, each Fund may invest in
repurchase agreements. The Funds, through their custodian, receive delivery of
the underlying collateral, whose market value must always equal or exceed the
repurchase price. The investment adviser is responsible for determining the
value of the underlying collateral at all times. In the event of default, a Fund
may have difficulties with the disposition of such collateral.
EXPENSE ALLOCATION - The Trust accounts separately for the assets and
liabilities and operations of each Fund. Expenses that are directly attributable
to more than one Fund are allocated among the respective Funds. Expenses that
are directly attributable to a class of shares are allocated to that class.
REALIZED GAIN AND LOSS - Security transactions are recorded on a trade date
basis. Realized gain and loss on investments sold are recorded on the basis of
identified cost for both financial statement and federal income tax purposes.
NOTE 3. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER - The investment adviser of each Fund is Norwest Investment
Management, Inc. ("Adviser"), formerly a part of, and effective June 1, 1997, a
wholly owned subsidiary of, Norwest Bank Minnesota, N.A. ("Norwest"). Norwest is
a subsidiary of Norwest Corporation. The Adviser receives an advisory fee from
U.S. Government Fund and Treasury Fund at an annual rate of 0.20% of each Funds'
average daily net assets for the first $300 million of net assets of each Fund,
declining to 0.12% of the average daily net assets of each Funds' net assets in
excess of $700 million. The Adviser receives an advisory fee from Municipal
Money Market Fund at an annual rate of 0.35% of the average daily net assets for
the first $500 million of net assets of the Fund, declining to 0.30% of the
average daily net assets of the Fund's net assets in excess of $1 billion. The
Adviser does not receive advisory fees with respect to Cash Investment Fund and
Ready Cash Investment Fund as long as the Funds remain completely invested in
the Portfolios. Prior to August 23, 1997, the Adviser received an advisory fee
from Cash Investment Fund and Ready Cash Investment Fund at annual rates of
0.20% and 0.40%, respectively, of the average daily net assets for the first
$300 million of net assets of each Fund, declining to 0.12% and 0.32%,
respectively, of the daily net assets of each Funds' net assets in excess of
$700 million.
MANAGEMENT, ADMINISTRATION AND DISTRIBUTION SERVICES - Forum Financial Services,
Inc.-Registered Trademark- ("FFSI") supervises the overall management of the
Trust other than investment advisory services. Forum Administrative Services,
LLC ("FAdS") is the administrator to the Trust. For their services, FFSI and
FAdS each receives a fee with respect to U.S. Government Fund, Treasury Fund,
and Institutional Shares of Municipal Money Market Fund at an annual rate of
0.05% of the Fund's (of class') average daily net assets; with respect to
Investor Shares of Municipal Money Market Fund, at an annual rate of 0.10% of
the class' average daily net assets; with respect to Investor Shares of Ready
Cash Investment Fund, at an annual rate of 0.075% of the class' average daily
net assets; and with respect to each other Fund, at an annual rate of 0.025% of
the Fund's average daily net assets. In addition, certain legal expenses were
charged to the Trust by FFSI. The respective amounts of legal expenses for the
year ended May 31, 1998, for Cash Investment Fund, Ready Cash Investment Fund,
U.S. Government Fund, Treasury Fund and Municipal Money Market Fund were:
$2,114, $684, $1,389, $715 and $474.
TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND CUSTODIAN - Norwest serves as the
Trust's transfer agent and dividend disbursing agent. For these services,
Norwest receives a fee at an annual rate of 0.20% of the average daily net
assets of Cash Investment Fund; 0.10% of the average daily net assets of
Municipal Money Market Fund attributable to Institutional Shares and 0.25% of
the average daily net assets attributable to the other classes of the Funds.
Norwest also serves as each Fund's custodian. Norwest receives a fee for its
custodial services with respect to each Fund at an annual rate of 0.02% of the
first $100 million of the Fund's average daily net assets; 0.15% of the next
$100 million of the Fund's average daily net assets; and 0.01% of the Fund's
remaining average daily net assets. No fee is directly payable by a Fund to the
extent the Fund is invested in a Portfolio.
DISTRIBUTION SERVICES - The Trust has adopted a Distribution Plan (the "Plan")
with respect to Exchange Shares of Ready Cash Investment Fund pursuant to Rule
12b-1 under the Act. The Plan authorizes the payment to FFSI of an annual
distribution service fee of 0.75% of the average daily net assets, and a
maintenance fee of 0.25% of the average daily net assets of Ready Cash
Investment Fund attributable to Exchange Shares. No maintenance fees were
incurred by the Fund during the year ended May 31, 1998. The distribution
payments are used to reimburse the distributor for (i) sales commissions at
levels set from time to time by the Board of Trustees ("Board"), not to exceed
6.25% of the amount received by the Fund for each Exchange share sold (excluding
reinvestment of dividends and distributions) and (ii) interest calculated by
applying the rate of 1% over the prime rate to the outstanding balance of
unreimbursed distribution charges. The current sales commission rate is based
upon that rate in effect for the fixed income or equity fund from which the
shareholder exchanged its shares. The Plan may be terminated by vote of a
majority of the Fund's shareholders or by vote of a majority of the Board which
do not have any direct or indirect financial interest in the Plan. In the event
the Plan is terminated or not continued, at the discretion of the Board, the
Fund may continue to pay distribution service fees to FFSI (but only with
respect to sales that occurred prior to the termination or discontinuance of the
Plan) until the earlier of (a) four years after the date of termination or
discontinuance or (b) such time as there exist no unreimbursed distribution
charges attributable to that Fund under the Plan, as calculated pursuant to the
Plan. Unreimbursed distribution charges at May 31, 1998, for Ready Cash
Investment Fund, were $3,759.
OTHER SERVICE PROVIDERS - Effective June 1, 1997, Forum Accounting Services, LLC
("FAcS") provides portfolio accounting services to each Fund. Prior to June 1,
1997, Forum Financial Corp.-Registered Trademark- ("FFC") provided portfolio
accounting services to each Fund pursuant to a separate agreement. Terms of the
agreements are identical in all material respects, including fees.
[LOGO]
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED) MAY 31, 1998
- --------------------------------------------------------------------------------
NOTE 4. VOLUNTARY WAIVERS AND REIMBURSEMENT OF EXPENSES
Norwest, Adviser, FAdS and FFSI have voluntarily waived a portion of their fees
and have reimbursed certain expenses of the Funds so that total expenses,
including indirect expenses borne by the Funds as a result of investing in the
corresponding Portfolio, would not exceed certain expense limitations
established for each Fund. Each service provider, at their discretion, may
revise or discontinue the voluntary fee waivers and expense reimbursements at
any time. For the year ended May 31, 1998, fees waived and expenses reimbursed
by the Trust's service providers were as follows:
<TABLE>
<CAPTION>
EXPENSES
FEES WAIVED REIMBURSED
------------------------------------------- -------------
FUND NORWEST ADVISER FADS/FFSI FFSI
- --------------------------------------------------------- ------------- ----------- ------------- -------------
<S> <C> <C> <C> <C>
Cash Investment Fund..................................... $ 255,031 $ - $ 1,585,294 $ -
Ready Cash Investment Fund............................... - - 335,911 13,605
U.S. Government Fund..................................... 49,351 - 281,603 -
Treasury Fund............................................ 139,274 - 854,503 -
Municipal Money Market Fund.............................. 469,437 165,379 635,716 -
<CAPTION>
TOTAL FEES
WAIVED
AND EXPENSES
FUND REIMBURSED
- --------------------------------------------------------- -------------
<S> <C>
Cash Investment Fund..................................... $ 1,840,325
Ready Cash Investment Fund............................... 349,516
U.S. Government Fund..................................... 330,954
Treasury Fund............................................ 993,777
Municipal Money Market Fund.............................. 1,270,532
</TABLE>
NOTE 5. FEDERAL INCOME TAXES
As of May 31, 1998, certain of the Funds had capital loss carryovers available
to offset future capital gains as follows:
<TABLE>
<CAPTION>
YEAR OF EXPIRATION
-----------------------------------------
2003 2005 2006
------------- ----------- -----------
<S> <C> <C> <C>
Cash Investment Fund......................................................... $ 1,663,035 $ - $ 75,562
Ready Cash Investment Fund................................................... 10,906 - -
U.S. Government Fund......................................................... 217,471 - -
Municipal Money Market Fund.................................................. - 1,121,466 -
<CAPTION>
TOTAL
-------------
<S> <C>
Cash Investment Fund......................................................... $ 1,738,597
Ready Cash Investment Fund................................................... 10,906
U.S. Government Fund......................................................... 217,471
Municipal Money Market Fund.................................................. 1,121,466
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
FEDERAL TAX STATUS OF DIVIDENDS DECLARED DURING THE FISCAL YEAR
INCOME DIVIDENDS - 100% of the income dividends paid by Municipal Money Market
Fund were of exempt interest. All income dividends of Cash Investment Fund,
Ready Cash Investment Fund, U.S. Government Fund and Treasury Fund were ordinary
income for federal income tax purposes.
CAPITAL GAIN DIVIDENDS - No long-term capital gains were declared by any of the
Funds.
[LOGO]
9
<PAGE>
SCHEDULES OF INVESTMENTS MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
CASH INVESTMENT FUND
- ------------------------------------------------------------------------
N/A Prime Money Market Portfolio of Core
Trust (Delaware) $2,348,709,076
N/A Money Market Portfolio of Core Trust
(Delaware) 2,348,790,981
--------------
TOTAL INVESTMENTS (100.0%) (COST $4,697,500,057)(a) $4,697,500,057
--------------
--------------
- ------------------------------------------------------------------------
READY CASH INVESTMENT FUND
- ------------------------------------------------------------------------
N/A Prime Money Market Portfolio of Core
Trust (Delaware) $ 790,042,915
--------------
TOTAL INVESTMENTS (100.0%) (COST $790,042,915)(a) $ 790,042,915
--------------
--------------
- ------------------------------------------------------------------------
U.S. GOVERNMENT FUND
- ------------------------------------------------------------------------
AGENCY NOTES (45.5%)
FFCB (5.5%)
25,000,000 5.75%, 7/1/98 $ 25,000,128
1,000,000 5.85%, 9/11/98 1,000,000
50,000,000 5.65%, 1/4/99 49,963,401
16,365,000 5.30%, 2/2/99 16,326,641
25,000,000 5.38%, 3/2/99 24,973,915
7,400,000 5.60%, 5/3/99 7,392,091
--------------
TOTAL FFCB 124,656,176
--------------
FHLB (14.4%)
10,375,000 5.72%, 7/7/98 10,374,732
12,500,000 5.80%, 9/18/98 12,505,224
4,780,000 5.85%, 9/30/98 4,781,523
37,200,000 5.63%, 10/8/98 37,200,510
50,000,000 5.63% V/R, 10/20/98 49,994,380
25,000,000 5.83%, 12/17/98 24,994,412
28,250,000 5.60%, 3/30/99 28,250,000
50,000,000 5.63% V/R, 4/9/99 49,978,631
13,200,000 5.75%, 4/27/99 13,200,000
42,550,000 5.70%, 5/5/99 42,538,180
50,000,000 5.59% V/R, 11/4/99 50,000,000
--------------
TOTAL FHLB 323,817,592
--------------
FHLMC (5.5%)
25,000,000 5.69%, 8/21/98 24,995,895
100,000,000 5.46% V/R, 4/21/99 99,947,629
--------------
TOTAL FHLMC 124,943,524
--------------
FNMA (15.9%)
32,000,000 12.00%, 6/26/98 32,133,379
25,000,000 6.10%, 9/4/98 25,019,523
50,000,000 5.64% V/R, 11/20/98 49,995,525
25,000,000 5.30%, 12/10/98 24,935,031
35,000,000 5.38%, 2/12/99 34,971,771
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- ------------------------------------------------------------------------
35,000,000 5.65%, 4/9/99 $ 34,993,688
50,000,000 5.63% V/R, 4/9/99 49,978,631
18,000,000 6.42%, 4/15/99 18,123,994
20,000,000 5.57%, 5/7/99 19,968,703
5,000,000 5.65%, 5/7/99 4,996,682
50,000,000 5.54% V/R, 5/28/99 49,956,287
15,000,000 6.87%, 6/1/98 15,000,000
--------------
TOTAL FNMA 360,073,214
--------------
SLMA (4.2%)
20,000,000 5.60%, 8/11/98 19,993,743
25,980,000 5.35% V/R, 8/20/98 25,975,557
50,000,000 5.41% V/R, 11/6/98 49,987,071
--------------
TOTAL SLMA 95,956,371
--------------
TOTAL AGENCY NOTES 1,029,446,877
--------------
COMMERCIAL PAPER (5.3%)
31,657,000 USA Group, Secondary Market Services,
Series A, SLMA LOC, 5.47%, 6/19/98 31,570,418
49,000,000 Western Financial Savings Bank, FHLB of
San Franscisco LOC, 5.48%, 6/5/98 48,970,164
39,000,000 Western Financial Savings Bank, FHLB of
San Franscisco LOC, 5.59%, 6/9/98 38,951,553
--------------
TOTAL COMMERCIAL PAPER 119,492,135
--------------
DISCOUNT NOTES (A) (13.4%)
FHLB (0.8%)
5,580,000 5.39%, 6/2/98 5,579,165
13,367,000 5.39%, 6/15/98 13,338,981
--------------
TOTAL FHLB 18,918,146
--------------
FHLMC (4.4%)
49,500,000 5.50%, 6/12/98 49,418,023
50,000,000 5.46%, 7/7/98 49,728,500
--------------
TOTAL FHLMC 99,146,523
--------------
FNMA (8.2%)
88,055,000 5.43%, 6/22/98 87,777,627
97,464,000 5.45%, 6/29/98 97,053,135
--------------
TOTAL FNMA 184,830,762
--------------
TOTAL DISCOUNT NOTES 302,895,431
--------------
U.S. TREASURY BILLS (A) (0.3%)
5,465,000 4.98% to 5.12%, 9/10/98 5,388,654
--------------
</TABLE>
(A) Annualized yields at time of purchase
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
10
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- ------------------------------------------------------------------------
REPURCHASE AGREEMENTS (35.5%)
235,000,000 BancAmerica Robertson Stephens, 5.55%,
6/1/98, to be repurchased at
$235,144,917, collateralized by
$128,829,195 FNMA, 6.00%-6.50%,
4/1/13-5/1/28, $96,733,992 FHLMC,
7.00%-7.50%, 2/1/13-5/1/28, with an
aggregate market value of
$246,198,506. $ 235,000,000
331,000,000 BancAmerica Robertson Stephens, 5.58%,
6/1/98, to be repurchased at
$331,153,915, collateralized by
$11,551,900 FFCN, 5.42%, 7/1/98,
$122,904,438 FHLB, 5.37%-5.71%,
10/13/98-3/19/03, $70,337,500 FHLMC,
5.43%-5.45%, 6/26/98-8/6/98,
$137,365,000 FNMA, 5.41%-6.05%,
7/17/98-3/12/01, with an aggregate
market value of $337,884,800. 331,000,000
235,000,000 Goldman Sachs, 5.57%, 6/1/98, to be
repurchased at $235,145,439,
collateralized by $290,784,501 FNMA,
7.30%-7.49%, 7/1/24-8/1/37, with an
aggregate market value of
$238,700,000. 235,000,000
--------------
TOTAL REPURCHASE AGREEMENTS 801,000,000
--------------
TOTAL INVESTMENTS (100.0%)(a) $2,258,223,097
--------------
--------------
- ------------------------------------------------------------------------
TREASURY FUND
- ------------------------------------------------------------------------
U.S. TREASURY BILLS (A) (27.6%)
50,000,000 4.92%, 6/4/98 $ 49,979,625
75,000,000 4.91%, 7/23/98 74,472,417
60,000,000 4.94%, 7/23/98 59,576,634
83,735,000 5.12%, 9/10/98 82,565,083
--------------
TOTAL U.S. TREASURY BILLS 266,593,759
--------------
U.S. TREASURY NOTES (72.4%)
125,000,000 6.00%, 6/1/98 125,000,000
105,000,000 6.25%, 6/30/98 105,094,334
120,000,000 8.25%, 7/15/98 120,439,113
65,000,000 5.25%, 7/31/98 64,988,199
84,000,000 6.25%, 7/31/98 84,110,637
65,000,000 5.88%, 8/15/98 65,059,048
50,000,000 6.13%, 8/31/98 50,092,870
23,000,000 4.75%, 9/30/98 22,952,979
60,000,000 6.00%, 9/30/98 60,116,386
--------------
TOTAL U.S. TREASURY NOTES 697,853,566
--------------
TOTAL INVESTMENTS (100.0%)(a) $ 964,447,325
--------------
--------------
</TABLE>
(A) Annualized yields at time of purchase
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
- ------------------------------------------------------------------------
ALABAMA (0.5%)
4,825,000 Alabama State, GO, 5.70%, 9/1/98 $ 4,847,465
--------------
ALASKA (1.4%)
8,790,000 Alaska State Department Administration,
COP, CAPMAC insured, 4.07% V/R, 9/1/06 8,790,000
5,000,000 Anchorage, AK, Higher Education RV,
Alaska Pacific University, Seattle
First National, LOC, 3.80% V/R, 7/1/17 5,000,000
--------------
TOTAL ALASKA 13,790,000
--------------
ARIZONA (0.8%)
4,400,000 Chandler, AZ, IDA Bonds, Parsons
Municipal Services, Inc., National
Westminster Bank, USA, LOC, 3.85% V/R,
12/15/09 4,400,000
1,000,000 Phoenix, AZ, GO Bonds, COLL by USG,
6.80%, 7/1/03, P/R 7/1/98 @ 102 1,022,330
2,675,000 Tempe, AZ, United High SD #213, GO
Bonds, FGIC insured, 14.35%, 7/1/98 2,697,252
--------------
TOTAL ARIZONA 8,119,582
--------------
ARKANSAS (0.4%)
4,000,000 Fayetteville, AR, Public Facilities
Board RV, Butterfield Trail Village,
Dresdner Bank AG, LOC, 4.0% V/R,
9/1/27 4,000,000
1,000,000 Little Rock, AR, IDR Bonds, GTD by CPC
International, 5.44% V/R, 12/1/03 1,000,000
--------------
TOTAL ARKANSAS 5,000,000
--------------
CALIFORNIA (2.2%)
12,000,000 California School Cash Reserve Program
Authority, Educational Facilities
Revenue Notes, Series A, 4.75%, 7/2/98 12,008,814
10,000,000 Los Angeles County, CA, Tax & Revenue
Anticipation Notes, Series A, 4.50%,
6/30/98 10,005,868
--------------
TOTAL CALIFORNIA 22,014,682
--------------
COLORADO (1.7%)
9,000,000 Arapahoe County, CO, SD #5, Cherry
Creek, Tax Anticipation Notes, 4.50%,
6/30/98 9,004,474
4,500,000 Colorado State COP, Refunding &
Acquisition Projects, AMBAC insured,
5.00%, 11/1/98 4,522,690
1,700,000 Moffat County, CO, PCR Bonds, AMBAC
insured, 3.95% V/R, 7/1/10 1,700,000
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
11
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
1,930,000 Parkview Metropolitan District, CO,
Arapahoe County, GO Bonds, Central
Bank, LOC, 3.80% V/R, 12/1/12 $ 1,930,000
--------------
TOTAL COLORADO 17,157,164
--------------
CONNECTICUT (0.3%)
3,000,000 Connecticut State Development Authority,
Industrial Development RV, GTD by
General Accident Insurance, 3.75%,
12/1/13, optional put 6/1/98 @ 100 3,000,000
--------------
FLORIDA (7.3%)
2,355,000 Broward County, FL, Educational
Facilities RV, School Board COP,
Series C, AMBAC insured, 3.75%, 7/1/98 2,354,679
2,000,000 Dade County, FL, IDA RV, GTD by ADP,
Inc., 4.50% V/R, 11/15/17 2,000,000
17,820,000 Florida HFA, Housing RV, Series 97-4,
ING Bank, LOC, 4.05% V/R, 7/1/08 17,820,000
8,120,000 Florida HFA, MFHR Bonds, Country Club
Project, Bankers Trust, LOC, 4.25%
V/R, 12/1/07 8,120,000
1,750,000 Florida HFA, MFHR Bonds, Oak Mill, Chase
Manhattan Bank, LOC, 3.85%, 11/1/07,
mandatory put 11/1/98 @ 100 1,750,000
1,710,000 Florida HFA, MFHR Bonds, South Trust
Alabama, LOC, 4.0% V/R, 6/1/07 1,710,000
1,600,000 Hillsborough County, FL, IDA, Port
Facilities RV, Seaboard System
Railroad, Inc. Project, National Bank
Detroit, LOC, 3.85% V/R, 10/15/99 1,600,000
18,900,000 Laurel Club Certificate Trust, COP,
Series A, Swiss Bank, LOC, 4.05% V/R,
6/1/25 18,900,000
14,200,000 Lee County Memorial Hospital, FL,
Hospital Revenue, 3.75%, 7/8/98 14,200,000
6,100,000 Sarasota County, FL, Health Facilities
Authority RV, Bay Village Project,
Barnett Bank, LOC, 3.80% V/R, 12/1/19 6,100,000
--------------
TOTAL FLORIDA 74,554,679
--------------
GEORGIA (0.9%)
2,695,000 Fulton County, GA, IDR Bonds, GTD by
ADP, 3.85% V/R, 9/1/12 2,695,000
6,000,000 Marietta, GA, MFHR Bonds, Falls at Bells
Ferry, Guardian Savings & Loan, LOC,
3.95%, 1/15/09, optional put 1/15/99 @
100 6,003,634
--------------
TOTAL GEORGIA 8,698,634
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
HAWAII (1.0%)
5,650,000 Hawaii State Department of Budget &
Finance, Special Purpose Mortgage RV,
Kuakini Medical Center Project, Bank
of Hawaii, LOC, 3.90% V/R, 7/1/04 $ 5,650,000
5,000,000 Hawaii State Department of Budget &
Finance, Special Purpose Mortgage RV,
Kaiser Permanente, Semiannual TE,
3.90%, 3/1/14, optional put 9/1/98 @
100 5,000,000
--------------
TOTAL HAWAII 10,650,000
--------------
ILLINOIS (12.2%)
1,000,000 Bedford Park, IL, IDR Bonds, GTD by CPC
International, 5.44% V/R, 11/1/03 1,000,000
4,000,000 Chicago, IL, GO Bonds, Equipment Notes,
Harris Trust & Savings, LOC, 3.60%,
1/1/06, mandatory tender 12/3/98 @ 100 4,000,000
6,135,000 Chicago, IL, GO Bonds, Morgan Guaranty,
LOC, 3.55%, 1/31/00, mandatory tender
2/4/99 @ 100 6,135,000
3,885,000 Cook County, IL, Municipal Trust
Receipts, Series SG-7, MBIA insured,
4.02% V/R, 11/15/23 3,885,000
890,000 Illinois Development Finance Authority,
Development RV, North Wacker Drive,
4.10% V/R, 12/1/15 890,000
6,000,000 Illinois Development Finance Authority,
MFHR Bonds, Garden Glen Apartments,
GTD by Continental Casualty Co., 4.05%
V/R, 12/1/13 6,000,000
2,170,000 Illinois Educational Facilities
Authority RV, Cultural Pool, First
National Bank of Chicago, LOC, 3.75%
V/R, 12/1/25 2,170,000
15,000,000 Illinois Educational Facilities
Authority RV, Cultural Pooled
Financing, American National Bank &
Trust, LOC, 3.80% V/R, 3/1/28 15,000,000
8,200,000 Illinois Health Facilities Authority RV,
4.02% V/R, 4/1/07 8,200,000
5,000,000 Illinois Health Facilities Authority RV,
Evanston Hospital Corp., Series A,
3.90%, 3/15/25, mandatory put 10/15/98
@ 100 5,000,000
5,000,000 Illinois Health Facilities Authority,
Health Care RV, Evanston Hospital
Corp., 3.90%, 8/15/30, mandatory put
7/31/98 @ 100 5,000,000
3,495,000 Illinois Health Facilities Authority,
Health Care RV, Series PA 195, AMBAC
insured, 4.02% V/R, 8/1/17 3,495,000
3,170,000 Illinois Housing Development Authority
RV, Homeowner Mortgage, Subseries E-1,
GTD by Natwest Bank, 3.80%, 12/17/98 3,170,000
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
12
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
6,800,000 Lombard, IL, IDR Bonds, 2500 Highland
Avenue, Mid-America Federal Savings &
Loan, LOC, 4.20% V/R, 12/1/06 $ 6,800,000
10,000,000 Lombard, IL, MFHR Bonds, Clover Creek
Apartments, Continental Casualty
Surety Bond, LOC, 4.00%, 12/15/06,
mandatory put 12/15/98 @ 100 10,000,000
5,200,000 Mount Morris, IL, Housing RV, Brethren
Home Project, La Salle National Bank,
Chicago, LOC, 3.80% V/R, 6/1/27 5,200,000
11,500,000 Oak Forest, IL, Other RV, Homewood Pool,
First National Bank of Chicago, LOC,
3.8% V/R, 7/1/24 11,500,000
19,970,000 Regional Transportation Authority, IL,
Transportation RV, 4.02% V/R, 6/1/24 19,970,000
2,000,000 South Barrington, IL, GO Bonds, Cook
County, Harris Trust, LOC, 3.80% V/R,
12/1/15 2,000,000
4,100,000 Springfield, IL, Transportation RV, GTD
by Allied Signal, 4.0% V/R, 10/15/16 4,100,000
1,500,000 Will & Kendall Counties, IL, GO Bonds,
Community Consolidated SD #202, Series
A, FSA insured, 6.38%, 12/30/98 1,522,933
--------------
TOTAL ILLINOIS 125,037,933
--------------
INDIANA (1.0%)
1,000,000 Gary, IN, Environmental Improvement, PCR
Bonds, U.S. Steel Group Project, Bank
of Nova Scotia, LOC, 3.85% V/R,
7/15/02 1,000,000
4,000,000 Indiana Hospital Equipment Financing
Authority RV, Series A, MBIA insured,
3.80% V/R, 12/1/15 4,000,000
5,200,000 Indiana State Development Financial
Authority, Educational Facilities RV,
Lutheran Project, First of America,
LOC, 3.95% V/R, 10/1/17 5,200,000
--------------
TOTAL INDIANA 10,200,000
--------------
IOWA (3.7%)
4,600,000 Des Moines, IA, IDR Bonds, Grand Office
Park, GTD by Principal Mutual Life,
4.15% V/R, 4/1/15 4,600,000
8,000,000 Iowa Finance Authority, Health Care RV,
Burlington Medical Center, FSA
insured, 3.9% V/R, 6/1/27 8,000,000
1,000,000 Iowa Finance Authority, SFM RV, Series
A, FGIC insured, 3.65%, 1/1/24,
mandatory put 2/24/99 @ 100 1,000,000
10,000,000 Iowa School Corp., Educational
Facilities, Warrants Certificates,
Series A, FSA insured, 4.50%, 6/26/98 10,005,205
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
4,000,000 Urbandale, IA, IDR Bonds, Aurora
Business Park Association Project, GTD
by Principal Mutual Life Insurance,
4.15% V/R, 10/1/15 $ 4,000,000
6,000,000 Urbandale, IA, IDR Bonds, Interstate
Acres L.P. Project, GTD by Principal
Mutual Life Insurance, 4.05% V/R,
12/1/14 6,000,000
4,605,000 Urbandale, IA, IDR Bonds, Meredith Drive
Association Project, GTD by Principal
Mutual Life Insurance, 4.15% V/R,
11/1/15 4,605,000
--------------
TOTAL IOWA 38,210,205
--------------
KANSAS (0.6%)
2,000,000 Baldwin City, KS, Educational Facilities
RV, Baker University Project, 9.50%,
10/1/08, P/R 10/1/98 @ 103 2,094,803
1,180,000 Kansas State Development Financial
Authority RV, Department Corrections,
El Dorado Correctional Facilities,
Series J, MBIA insured, 3.85%, 8/1/98 1,180,000
1,500,000 Olathe, KS, GO Bonds, Series A, 4.50%,
6/1/98 1,500,000
1,200,000 Prairie Village, KS, MFHR Bonds, J.C.
Nichols Co. Project, GTD by Principal
Mutual Life Insurance, 4.15% V/R,
12/1/15 1,200,000
--------------
TOTAL KANSAS 5,974,803
--------------
KENTUCKY (3.9%)
2,090,000 Clark County, KY, PCR Bonds, Kentucky
Power, National Rural, Series J-1,
3.60%, 10/15/14, optional put 10/15/98
@ 100 2,090,000
9,100,000 Jefferson County, KY, MFHR Bonds, Canter
Chase, First of America, LOC, 3.95%
V/R, 12/1/26 9,100,000
11,300,000 Kentucky Economic Development Financial
Authority, Health Care RV, Sisters of
Charity, 4.00% V/R, 11/1/20 11,300,000
9,750,000 Kentucky State Turnpike Authority
Resource Recovery Road RV, Series 17,
FSA insured, 4.00% V/R, 7/1/03 9,750,000
3,000,000 Mayfield, KY, Multi-City Lease RV, PNC
Bank, LOC, 4.00% V/R, 7/1/26 3,000,000
2,500,000 Pendleton County, KY, General RV, Self-
Insurance Funding for Kentucky
Association of Counties Fund, PNC
Bank, LOC, 3.95%, 7/1/01, optional put
7/1/98 at 100 2,500,000
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
13
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
2,000,000 University of Kentucky, University RV,
Consolidated Educational Buildings,
MBIA insured, 4.50%, 5/1/99 $ 2,013,291
--------------
TOTAL KENTUCKY 39,753,291
--------------
LOUISIANA (0.2%)
2,060,000 Louisiana Public Facilities Authority,
Educational Facilities, Advance
Funding Notes, School Board, Series D,
4.40%, 12/10/98 2,065,942
--------------
MARYLAND (1.4%)
12,000,000 Howard County, MD, MFHR Bonds, Sherwood
Crossing Limited Project, Guardian
Savings & Loan, LOC, 3.95%, 6/1/08,
mandatory put 6/1/98 @ 100 12,000,000
2,500,000 Maryland State, Industrial Authority
Economic Development RV, Johnson
Controls, Inc., LOC, 4.00% V/R,
12/1/03 2,500,000
--------------
TOTAL MARYLAND 14,500,000
--------------
MASSACHUSETTS (1.0%)
10,000,000 Massachusetts State Turnpike Authority,
Western Turnpike Revenue Bonds,
Class A Certificates, Series W, 4.02%
V/R, 1/1/17 10,000,000
--------------
MICHIGAN (2.0%)
3,425,000 Bruce TWP, MI, Hospital Finance
Authority, Health Care RV, Sisters
Charity St. Joseph, Series A, MBIA
insured, 3.75%, 5/1/18, optional put
11/2/98 @ 100 3,425,000
11,010,000 Kalamazoo, MI Hospital Finance Authority
RV, P Floats, PT 189, MBIA insured,
4.02% V/R, 5/15/18 11,010,000
2,400,000 Michigan State Hospital Finance
Authority RV, Hospital Equipment Loan
Program, Series A, First of America,
LOC, 3.95% V/R, 12/1/23 2,400,000
3,500,000 Michigan State Hospital Financial
Authority RV, Hospital Equipment Loan
Program, Series A, First of America,
LOC, 3.95% V/R, 12/1/23 3,500,000
--------------
TOTAL MICHIGAN 20,335,000
--------------
MINNESOTA (4.5%)
5,000,000 Crystal, MN, MFHR Bonds, Crystal
Apartments L.P. Project, 3.75% V/R,
5/1/27 5,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
4,900,000 Mankato, MN, MFHR Bonds, Highland Hills
Project, First Bank, LOC, 3.75% V/R,
5/1/27 $ 4,900,000
5,000,000 Minnesota SD Tax & Aid Anticipation
Borrowing Program Certificates, Tax
Anticipation Certificate Indentures,
Series B, 3.90%, 3/4/99 5,012,779
4,005,000 Minnesota SD Tax & Aid Anticipation COP,
Series A, 3.80%, 8/13/98 4,004,828
3,000,000 Minnesota SD Tax & Aid Anticipation COP,
Series B, 3.85%, 9/3/98 3,000,000
5,000,000 Minnesota State HFA, SFM RV, Series G,
4.15%, 1/1/18, P/R 12/1/98 @ 100 5,000,454
1,705,000 St. Paul, MN, Housing & Redevelopment
Authority Commercial Development RV,
Park Development Association Project,
First Star Milwaukee, LOC, 3.85% V/R,
12/1/15 1,705,000
14,400,000 St. Paul, MN, Housing & Redevelopment
Authority, Utilities RV, Credit Local
de France, LOC, 3.70% V/R, 12/1/12 14,400,000
1,000,000 St. Paul, MN, Port Authority IDR Bonds,
Texas Project, Series A, U.S. Bank
N.A., LOC, 3.70% V/R, 6/1/10 1,000,000
2,700,000 Stillwater, MN, ISD #834, GO Bonds, FGIC
insured, 6.75%, 2/1/09, crossover
refunding 2/1/99 @ 100 2,752,165
--------------
TOTAL MINNESOTA 46,775,226
--------------
MISSISSIPPI (0.1%)
1,430,000 Shaw, MS, Urban Renewal RV, Phase I
Redevelopment Project, Sunlife of
America, LOC, 4.40%, 12/28/18,
mandatory put 12/28/98 @ 100 1,435,198
--------------
MISSOURI (5.7%)
1,000,000 Camden County, MO, Public Facilities
Authority Leasehold RV, Law
Enforcement Center Project, MBIA
insured, 4.00%, 10/1/98 1,000,412
2,570,000 Desloge, MO, IDA RV, National
HealthCorp. Project, Bank of Tokyo-
Mitsubishi, LOC, 4.00% V/R, 12/1/10 2,570,000
2,555,000 Dunklin County, MO, IDA RV, Bonds,
National HealthCorp. Project, Bank of
Tokyo Ltd., LOC, 4.00% V/R, 12/1/10 2,555,000
1,500,000 Independence, MO, IDR Bonds, Groves and
Graceland, Project A, Credit Local de
France, LOC, 4.00% V/R, 11/1/27 1,500,000
1,125,000 Kansas City, MO, IDA RV, Ewing Marion
Kauffman, Series A, 4.05% V/R, 4/1/27 1,125,000
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
14
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
13,975,000 Kansas City, MO, IDA, MFHR Bonds, Coach
House II Project, GTD by Principal
Mutual Life Insurance, 4.15% V/R,
12/1/15 $ 13,975,000
2,200,000 Kansas City, MO, IDA, MFHR Bonds, JC
Nichols Co. Project, GTD by Principal
Mutual Life Insurance, 4.15% V/R,
5/1/15 2,200,000
3,200,000 Missouri State HEHFA Anticipation Notes,
Series A, 4.00%, 11/12/98 3,202,040
5,000,000 Missouri State HEHFA Anticipation Notes,
Series E, 4.25%, 4/7/99 5,021,700
900,000 Missouri State HEHFA Anticipation Notes,
Series H, 4.25%, 4/7/99 903,906
4,000,000 Missouri State HEHFA RV, Bethesda
Barclay House Project, Series A,
Mercantile Bank of St. Louis, LOC,
4.15% V/R, 8/15/26 4,000,000
1,000,000 Missouri State HEHFA RV, Cox Health
Systems, MBIA insured, 4.15% V/R,
6/1/15 1,000,000
6,400,000 Missouri State HEHFA RV, Drury College,
Series A, Chase Manhattan, LOC, 4.05%
V/R, 8/15/21 6,400,000
100,000 Missouri State HEHFA RV, St. Francis
Medical Center, Series A, Credit Local
de France, LOC, 4.00% V/R, 6/1/26 100,000
12,400,000 Missouri State HEHFA RV, Washington
University, Series D, 4.00% V/R,
9/1/30 12,400,000
--------------
TOTAL MISSOURI 57,953,058
--------------
MONTANA (1.0%)
10,000,000 Montana State Board of Investments,
Municipal Finance Construction,
Intercap Program RV, 3.60%, 3/1/18,
optional put 3/1/99 @ 100 10,000,000
--------------
NEBRASKA (0.2%)
1,980,000 Nebraska Investment Financial Authority
RV, Catholic Health Initiatives,
Series A, 4.25%, 12/1/98 1,983,360
--------------
NEVADA (0.9%)
3,775,000 Henderson, NV, Health Care Facilities
RV, PT 134, AMBAC insured, 4.02% V/R,
7/1/20 3,775,000
5,000,000 Nevada State GO, Trust Receipts, Series
36 D, 4.0% V/R, 11/1/25 5,000,000
--------------
TOTAL NEVADA 8,775,000
--------------
NEW JERSEY (3.7%)
9,800,000 Hudson County, NJ, COP, Correctional
Facilities, BIG insured, 7.60%,
12/1/21 10,173,858
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
500,000 Monmouth County, NJ, GO Bonds, Import
Authority Revenue, Correctional
Facilities, Monmouth Project, 6.00%,
8/1/98 $ 501,745
2,400,000 New Jersey State Educational Facilities
Authority RV, Series SG 48, MBIA
insured, 3.92% V/R, 7/1/26 2,400,000
20,000,000 State of New Jersey, Tax & Revenue
Anticipation Notes, Series A, Bank of
Nova Scotia, LOC, 3.65%, 6/15/98 20,000,000
5,000,000 State of New Jersey, Tax & Revenue
Anticipation Notes, Series A, Bank of
Nova Scotia, LOC, 3.65%, 6/15/98 5,000,000
--------------
TOTAL NEW JERSEY 38,075,603
--------------
NEW MEXICO (2.1%)
2,500,000 Bloomfield, NM, GO Bonds, Series A, La
Salle National Bank, LOC, 4.00% V/R,
11/15/10 2,500,000
2,760,000 Espanola, NM, Health Care RV, Series A,
La Salle National Bank, LOC, 4.00%
V/R, 11/15/10 2,760,000
7,995,000 Farmington, NM, PCR RV, 4.02% V/R,
12/1/16 7,995,000
1,415,000 New Mexico Mortgage Finance Authority,
SFM RV, Issue 1, COLL by FNMA/ GNMA,
3.85%, 7/1/28, mandatory put 10/15/98
@ 100 1,415,000
5,000,000 New Mexico State Tax & Revenue
Anticipation Notes, Series A, 4.50%,
6/30/98 5,002,570
1,735,000 Silver City, NM, GO Bonds, Series A, La
Salle National Bank, LOC, 4.00% V/R,
11/15/10 1,735,000
--------------
TOTAL NEW MEXICO 21,407,570
--------------
NEW YORK (9.5%)
9,700,000 Allegany-Limestone, NY, GO Bonds,
Century SD, 4.00%, 1/29/99 9,719,164
5,200,000 New York State Dorm Authority, Municipal
Securities Receipts, Series CMC1B,
AMBAC insured, 4.00% V/R, 2/15/08 5,200,000
3,900,000 New York State Dorm Authority, Municipal
Securities Receipts, Series CMC2A,
4.05% V/R, 2/1/06 3,900,000
3,900,000 New York State Dorm Authority, Municipal
Securities Receipts, Series CMC2B,
4.05% V/R, 2/1/07 3,900,000
12,050,000 New York State Dormitory Authority RV,
Floater Trusts, AMBAC insured, 4.0%
V/R, 7/1/25 12,050,000
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
15
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
2,500,000 New York State Local Government
Assistance Corp., RV, Series SG 99,
AMBAC insured, 4.02% V/R, 4/1/11 $ 2,500,000
3,180,000 New York State Medical Care Facilities
Finance Agency, Health Care RV, Class
A Certificates, Series F, FHA insured,
4.02% V/R, 2/15/27 3,180,000
9,385,000 New York State Medical Care Facilities
Finance Agency, Health Care RV, Credit
Suisse, LOC, 3.90% V/R, 2/1/13,
mandatory put 12/3/98 @ 100 9,385,000
6,545,000 New York State Medical Care Facilities
Finance Agency, Health Care RV, FHA
insured, 3.90% V/R, 2/15/05, mandatory
put 12/3/98 @ 100 6,545,000
6,620,000 New York State Medical Care Facilities
Finance Agency, Health Care RV, FHA
insured, 3.90% V/R, 2/15/05, mandatory
put 12/3/98 @ 100 6,620,000
9,995,000 New York State, Urban Development Corp.
RV, Series PT 147, Hypo Bayerische
Bank, LOC, 3.75%, 7/1/16, mandatory
tender 6/4/98 @ 100 9,995,000
21,040,000 New York, NY, City Municipal Water
Finance Authority, Water and Sewer RV,
Series PT 1008, FGIC insured, 4.02%
V/R, 6/15/30 21,040,000
3,325,000 Triborough Bridge & Tunnel Authority,
NY, Transportation RV, PA 200, 4.02%
V/R, 1/1/12 3,325,000
--------------
TOTAL NEW YORK 97,359,164
--------------
NORTH CAROLINA (0.3%)
3,000,000 Person County, NC, Industrial Facilities
& Pollution Control Financing
Authority, PCR Bonds, GTD by Carolina
Power & Light Co., 4.00% V/R, 11/1/19 3,000,000
--------------
OHIO (1.2%)
1,650,000 Erie County, OH, GO Bonds, 4.25%, 6/1/99 1,657,937
5,200,000 Hamilton County, OH, IDR Bonds,
Community Urban Redevelopment Project,
National Westminster, LOC, 3.85% V/R,
10/15/12 5,200,000
4,400,000 Wooster, OH, IDR Bonds, Allen Group,
Inc., National Bank of Detroit, LOC,
4.15% V/R, 12/1/10 4,400,000
1,000,000 Worthington, OH, GO Bonds, City SD, FGIC
insured, 3.65%, 12/1/98 1,000,000
--------------
TOTAL OHIO 12,257,937
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
OKLAHOMA (1.0%)
2,625,000 Oklahoma County IDR Bonds, Carbon
Office, FGIC insured, 3.80% V/R,
12/1/14 $ 2,625,000
2,615,000 Oklahoma County, OK, Finance Authority,
IDR Bonds, Perrine Office Project,
FGIC insured, 3.80% V/R, 12/1/14 2,615,000
4,500,000 Oklahoma State, Water Reserve Board
State Loan Program RV, AMBAC insured,
3.55%, 9/1/24, optional put 9/1/98 @
100 4,500,000
--------------
TOTAL OKLAHOMA 9,740,000
--------------
PENNSYLVANIA (5.2%)
9,000,000 Allegheny County, PA, IDA RV,
Commerzbank, LOC, 3.60%, 6/4/98 9,000,000
1,000,000 Berks County, PA, IDR Bonds, GTD by CNA
Insurance, 3.95% V/R, 7/1/16 1,000,000
1,100,000 Butler County, PA, IDA, PCR Bonds,
Pennzoil Co. Project, Mellon Bank,
LOC, 4.30% V/R, 12/1/12 1,100,000
4,890,000 Chartiers Valley, PA, Industrial &
Commercial Development Authority, IDR
Bonds, GTD by ADP, Inc., 4.50% V/R,
11/15/17 4,890,000
30,000,000 Harrisburg, PA, Authority RV, Adjusted
PA Pool Financing Fund, 4.00% V/R,
7/1/21 30,000,000
2,590,000 Pennsylvania Intergovernmental Coop
Authority, Special Tax RV, MBIA
insured, 4.02% V/R, 6/15/23 2,590,000
4,200,000 Quakertown, PA, Health Care RV, Hospital
Group Pooled Financing, Series A, PNC
Bank, LOC, 3.95% V/R, 7/1/26 4,200,000
--------------
TOTAL PENNSYLVANIA 52,780,000
--------------
SOUTH CAROLINA (2.3%)
2,000,000 Piedmont Municipal Power Agency, SC,
Electric RV, Series B, MBIA insured,
3.90% V/R, 1/1/19 2,000,000
5,855,000 South Carolina State Public Service
Authority, Utilities RV, FGIC insured,
4.02% V/R, 1/1/23 5,855,000
8,355,000 South Carolina State Public Service
Authority RV, Series SG-2, MBIA
insured, 4.02% V/R, 7/1/21 8,355,000
5,000,000 York County, SC, PCR Bonds, North
Carolina Electric Project, NRU, Series
84N-3, CFC insured, 3.50%, 9/15/14,
P/R 9/15/98 @ 100 5,000,000
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
16
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
1,120,000 York County, SC, PCR Bonds, Saluda River
Electric Cooperative, Pooled Series
84E-2, National Rural Utilities
Cooperative Finance, LOC, 3.45%,
8/15/14, puttable 8/15/98 @ 100 $ 1,120,000
1,000,000 York County, SC, SD #003, GO Bonds, Rock
Hill, COLL by USG, 7.50%, 6/1/02, P/R
6/1/98 @ 102 1,020,000
--------------
TOTAL SOUTH CAROLINA 23,350,000
--------------
TEXAS (7.0%)
1,100,000 Bexar County, TX, Housing Finance Corp.,
MFHR Bonds, Creightons Mill
Development Project, Series A, GTD by
New England Mutual Life Insurance Co.,
4.05% V/R, 8/1/06 1,100,000
4,950,000 Bexar County, TX, Housing Finance Corp.,
MFHR Bonds, Park Hill Development
Project, Series B, GTD by New England
Mutual Life Insurance Co., 4.05% V/R,
6/1/05 4,950,000
25,500,000 City of Austin, TX, Morgan Guaranty,
LOC, 3.65%, 6/12/98 25,500,000
15,000,000 Harris County, TX, Health Care
Facilities RV, 4.15% V/R, 12/1/25,
mandatory tender 12/1/98 @ 100 15,000,000
5,200,000 Harris County, TX, Housing Finance
Corp., MFHR Bonds, Arbor II Limited
Project, Guardian Savings & Loan, LOC,
3.95%, 10/1/05, mandatory put 10/1/98
@ 100 5,200,000
3,770,000 Houston, TX, Water & Sewer Systems RV,
Municipal Trust Receipts, Series SG
120, FGIC insured, 4.02% V/R, 12/1/23 3,770,000
920,000 Tarrant County, TX, MFHR Bonds, SF
Apartments Project, Suntrust Bank,
Nashville, LOC, 3.95% V/R, 11/1/17 920,000
3,000,000 Texas State Department of Housing and
Community Affairs, SFM RV, Series PT
136, MBIA insured, 4.02% V/R, 3/1/17 3,000,000
2,800,000 Texas State GO Bonds, Public Finance
Authority, Series A, 5.00%, 10/1/98 2,810,428
1,250,000 Texas State GO Bonds, Texas Public
Finance Authority, Series A, COLL by
USG, 6.90%, 10/1/06, P/R 10/1/98 @ 100 1,262,382
7,700,000 Trinity River, TX, IDA Bonds, ADP Inc.
Project, ADP Inc., LOC, 4.20% V/R,
1/1/13 7,700,000
--------------
TOTAL TEXAS 71,212,810
--------------
UTAH (3.3%)
4,240,000 Davis County, UT, MFHR Bonds, Fox Creek
Apartments, Series A, 4.0% V/R,
7/15/27 4,240,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
3,500,000 Intermountain Power Agency, UT, Power
Supply RV, Series E, AMBAC insured,
3.45%, 7/1/14, optional put 9/15/98 @
100 $ 3,500,000
5,000,000 Intermountain Power Agency, UT, Power
Supply RV, Series E, GTD by Morgan
Guaranty, 3.80%, 7/1/21, optional put
6/15/98 @ 100 5,000,000
21,000,000 State of Utah, 3.70%, 9/30/98 21,000,000
--------------
TOTAL UTAH 33,740,000
--------------
VIRGINIA (1.2%)
12,500,000 Harrisonburg, VA, MFHR Bonds, Rolling
Brook Village Apartments, Series A,
Guardian Savings & Loan, LOC, 3.70%,
2/1/26, mandatory put 2/1/99 @ 100 12,500,000
--------------
WASHINGTON (4.7%)
5,800,000 Port Seattle, WA, IDR Bonds, Sysco Food
Services Project, 3.95% V/R, 11/1/25 5,800,000
4,620,000 Seattle, WA, GO Bonds, Series E, 5.00%,
10/1/98 4,638,406
2,500,000 Seattle, WA, IDR Bonds, Longview Fibre
Co., 3.70% V/R, 1/1/03 2,500,000
7,900,000 Washington Public Power Supply System,
Power RV Receipts, Nuclear Project #1,
Series CMC2, 4.00% V/R, 7/1/07 7,900,000
9,900,000 Washington Public Power Supply System,
Nuclear Project #2, Power RV, AMBAC
insured, 4.00% V/R, 7/1/07 9,900,000
1,000,000 Washington Public Power Supply System,
Power RV, Nuclear Project #3, Series
13, MBIA insured, 4.02% V/R, 7/1/15 1,000,000
12,495,000 Washington State GO Bonds, FGIC insured,
3.75%, 1/1/22, mandatory tender 6/4/98
@ 100 12,495,000
500,000 Washington State GO Bonds, Series A,
6.60%, 10/1/98 504,882
3,380,000 Washington State Health Care Facilities
Authority RV, Catholic Health
Initiatives, Series B, MBIA insured,
4.25%, 12/1/98 3,386,152
--------------
TOTAL WASHINGTON 48,124,440
--------------
WISCONSIN (2.9%)
1,000,000 Beloit & Rock County, WI, IDR Bonds, GTD
by CPC International, 5.44% V/R,
4/1/19 1,000,000
1,405,000 Johnson Controls, Inc., Other RV,
Grantor Trust, Wachovia Corp., LOC,
4.00% V/R, 10/1/01 1,405,000
5,000,000 Manitowoc, WI, Public SD, Educational
Facilities, Bond Anticipation Notes,
4.00%, 10/1/98 5,001,864
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
17
<PAGE>
SCHEDULES OF INVESTMENTS (CONCLUDED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
1,060,000 Milwaukee, WI, IDR Bonds, Longview Fibre
Co. Project, 3.70% V/R, 1/1/03 $ 1,060,000
6,500,000 Oshkosh, WI, Area SD, Educational
Facilities, Tax & Anticipation
Promissory Notes, 4.15%, 8/24/98 6,503,782
9,635,000 Southeast Wisconsin Professional
Baseball Park District, Sales Tax RV,
MBIA insured, 4.02% V/R, 12/15/16 9,635,000
1,000,000 Wisconsin State GO Bonds, Series 1,
4.70%, 11/1/98 1,004,265
3,475,000 Wisconsin State HEHFA RV, Series PA 183,
MBIA insured, 4.02% V/R, 8/15/17 3,475,000
--------------
TOTAL WISCONSIN 29,084,911
--------------
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------
WYOMING (0.7%)
1,000,000 Green River, WY, PCR Bonds, Allied Corp.
Project, GTD by Allied Signal Corp.,
5.00% V/R, 12/1/12 $ 1,000,000
6,500,000 Wyoming Community Development Authority,
Housing RV, Series 7B, 4.13%, 12/1/30,
mandatory put 8/27/98 @ 100 6,504,446
--------------
TOTAL WYOMING 7,504,446
--------------
TOTAL INVESTMENTS (100.0%)(a) $1,020,968,103
--------------
--------------
</TABLE>
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS
- --------------------------------------------------------------------------------
(a) Aggregate cost for federal tax purposes is the same for each Fund except
U.S. Government Fund and Treasury Fund, which have federal tax costs of
$2,258,231,875 and $964,448,042, respectively
ABBREVIATIONS
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
BAN Bond Anticipation Note
BPC Borrowing Program Certificate
CAPMAC Capital Market Assurance Corporation
COLL Collateralized
COP Certificate of Participation
EDA Economic Development Authority
EFA Educational Facilities Authority
ETM Escrowed to Maturity
FFCB Federal Farm Credit Bank
FGIC Financial Guaranty Insurance Company
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
GO General Obligation
GTD Guaranteed
HEFA Higher Education Facilities Authority
HEHFA Higher Education & Health Facilities Authority
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
ISD Independent School District
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MFHR Multi Family Housing Revenue
NBD National Bank Detroit
P/R Prerefunded
PCR Pollution Control Revenue
PFA Public Finance Authority
RV Revenue Bonds
SD School District
SF Single Family
SFM Single Family Mortgage
SLMA Student Loan Marketing Association
TAN Tax Anticipation Note
TRAN Tax & Revenue Anticipation Note
TVA Tennessee Valley Authority
USG U.S. Government
UST U.S. Treasury
V/R Variable rate -- these securities are deemed to have a
maturity remaining until the next adjustment of the
interest rate or the longer of the demand period or
readjustment. The interest rates shown reflect the rate
in effect on May 31, 1998
</TABLE>
[LOGO]
See Notes to Schedules of Investments and Notes to Financial Statements
18
<PAGE>
ANNUAL REPORT
MAY 31, 1998
PRIME MONEY MARKET PORTFOLIO
MONEY MARKET PORTFOLIO
CORE TRUST (DELAWARE)
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Board of Trustees and Partners
Core Trust (Delaware)
We have audited the accompanying statements of assets
and liabilities of two portfolios of Core Trust
(Delaware), Prime Money Market Portfolio and Money Market
Portfolio, (collectively, the "Portfolios"), including the
schedules of investments, as of May 31, 1998, and the
related statements of operations, statements of changes in
net assets and financial highlights for the period from
August 23, 1997 (commencement of operations) to May 31,
1998. These financial statements and financial highlights
are the responsibility of the Portfolios' management. Our
responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures
included confirmation of securities owned as of May 31,
1998, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of the
Portfolios as of May 31, 1998, the results of their
operations, changes in their net assets and financial
highlights for the period from August 23, 1997 to May 31,
1998, in conformity with generally accepted accounting
principles.
[LOGO]
Boston, Massachusetts
July 21, 1998
CORE TRUST (DELAWARE)
20
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MONEY
MARKET MARKET
PORTFOLIO PORTFOLIO
---------------- ----------------
<S> <C> <C>
ASSETS
Investments at cost (Note 2)............... $ 3,127,213,156 $ 2,360,526,186
Cash....................................... 117,269 111,446
Receivable for interest and other
receivables.............................. 12,458,411 11,953,861
Organization Costs, net of amortization
(Note 2)................................. 12,663 12,663
---------------- ----------------
TOTAL ASSETS................................. 3,139,801,499 2,372,604,156
---------------- ----------------
LIABILITIES
Payable to custodian (Note 3).............. 27,675 21,322
Payable to adviser (Note 3)................ 878,817 200,477
Payable to other related parties (Note
3)....................................... 132,007 4,593
Accrued expenses and other liabilities..... 11,009 9,102
---------------- ----------------
TOTAL LIABILITIES............................ 1,049,508 235,494
---------------- ----------------
NET ASSETS................................... $ 3,138,751,991 $ 2,372,368,662
---------------- ----------------
---------------- ----------------
COMPONENTS OF NET ASSETS
Investors' capital......................... $ 3,138,751,991 $ 2,372,368,662
---------------- ----------------
---------------- ----------------
</TABLE>
See Notes to Financial Statements CORE TRUST (DELAWARE)
21
<PAGE>
STATEMENTS OF OPERATIONS PERIOD ENDED MAY 31, 1998(a)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MONEY
MARKET MARKET
PORTFOLIO PORTFOLIO
------------- ------------
<S> <C> <C>
INVESTMENT INCOME
Interest income............................ $126,455,477 $ 97,103,729
------------- ------------
EXPENSES
Advisory (Note 3).......................... 7,337,295 2,332,191
Administration (Note 3).................... 1,098,165 842,979
Custody (Note 3)........................... 231,222 180,185
Accounting (Note 3)........................ 71,887 70,387
Legal (Note 3)............................. 22,869 16,495
Audit...................................... 13,968 13,968
Trustees................................... 4,087 3,352
Amortization of organization costs (Note
2)....................................... 2,531 2,531
Miscellaneous.............................. 35,467 14,559
------------- ------------
TOTAL EXPENSES............................... 8,817,491 3,476,647
Fees waived and expenses reimbursed (Note
4)....................................... - (1,484,619)
------------- ------------
NET EXPENSES................................. 8,817,491 1,992,028
------------- ------------
NET INVESTMENT INCOME........................ 117,637,986 95,111,701
NET REALIZED LOSS FROM INVESTMENTS SOLD...... (42,987) (21,885)
------------- ------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $117,594,999 $ 95,089,816
------------- ------------
------------- ------------
</TABLE>
(a) For the period August 23, 1997 (date of commencement of operations), to May
31, 1998
See Notes to Financial Statements CORE TRUST (DELAWARE)
22
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS PERIOD ENDED MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MONEY
MARKET MARKET
PORTFOLIO PORTFOLIO
---------------- ---------------
<S> <C> <C>
NET ASSETS -- AUGUST 23, 1997 (COMMENCEMENT OF
OPERATIONS)..................................... $ - $ -
---------------- ---------------
OPERATIONS
Net investment income........................... 117,637,986 95,111,701
Net realized loss on investments sold........... (42,987) (21,885)
---------------- ---------------
Net increase in net assets resulting from
operations................................. 117,594,999 95,089,816
---------------- ---------------
TRANSACTIONS IN INVESTOR'S BENEFICIAL INTERESTS
Contributions (Note 5).......................... 5,373,694,156 4,410,026,378
Withdrawals..................................... (2,352,537,164) (2,132,747,532)
---------------- ---------------
Net increase from transactions in investors'
beneficial interests....................... 3,021,156,992 2,277,278,846
---------------- ---------------
Net increase in net assets.................. 3,138,751,991 2,372,368,662
---------------- ---------------
NET ASSETS -- MAY 31, 1998........................ $ 3,138,751,991 $ 2,372,368,662
---------------- ---------------
---------------- ---------------
</TABLE>
See Notes to Financial Statements CORE TRUST (DELAWARE)
23
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS(a)
-------------
NET
EXPENSES
-------------
<S> <C>
PRIME MONEY MARKET PORTFOLIO
August 23, 1997(c) to May 31, 1998................................................................. 0.40%
MONEY MARKET PORTFOLIO
August 23, 1997(c) to May 31, 1998................................................................. 0.12%
<CAPTION>
GROSS
EXPENSES(b)
---------------
<S> <C>
PRIME MONEY MARKET PORTFOLIO
August 23, 1997(c) to May 31, 1998................................................................. 0.40%
MONEY MARKET PORTFOLIO
August 23, 1997(c) to May 31, 1998................................................................. 0.21%
<CAPTION>
NET
INVESTMENT
INCOME
---------------
PRIME MONEY MARKET PORTFOLIO
August 23, 1997(c) to May 31, 1998................................................................. 5.36%
MONEY MARKET PORTFOLIO
August 23, 1997(c) to May 31, 1998................................................................. 5.64%
</TABLE>
(a) Annualized
(b) During the period, various fees were waived and reimbursed. The ratio of
Gross Expenses to Average Net Assets reflects the expense ratio in the
absence of any waivers and reimbursements (Note 4)
(c) Commencement of operations
See Notes to Financial Statements CORE TRUST (DELAWARE)
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS MAY 31, 1998
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Core Trust (Delaware) ("Core Trust"), organized as a Delaware business trust,
was formed on September 1, 1994. Core Trust, which is registered as an open-end
management investment company under the Investment Company Act of 1940 (the
"Act"), currently has twenty-one separate investment portfolios. These financial
statements relate to Prime Money Market Portfolio and Money Market Portfolio
(each a "Portfolio" and collectively the "Portfolios"), each of which is
diversified. The Portfolios commenced operations on August 23, 1997. Interests
in the Portfolios are sold in private placement transactions without any sales
charge to qualified investors, including open-end management investment
companies.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates. The following represent significant accounting policies of the Funds:
PORTFOLIO VALUATION - Core Trust determines the net asset value per share of
each Portfolio as of 1:00 p.m., Pacific time, on each Portfolio business day
utilizing the amortized cost method pursuant to Rule 2a-7 under the Act. Under
this method, all investments purchased at a discount or premium are valued by
accreting or amortizing, respectively, the difference between the original
purchase price and the maturity value of the investment over the period to the
investment's maturity.
REPURCHASE AGREEMENTS - The Portfolios may invest in repurchase agreements. Each
Portfolio, through its custodian, receives delivery of the underlying
collateral, whose market value must always equal or exceed the repurchase price.
The investment adviser is responsible for determining the value of the
underlying collateral at all times. In the event of default, a Portfolio may
have difficulties with the disposition of such securities held as collateral.
ORGANIZATION COSTS - The costs incurred by each Portfolio in connection with its
organization have been capitalized and are being amortized using the
straight-line method over a five year period beginning on the commencement of
each Portfolio's operations.
FEDERAL TAXES - The Portfolios are not required to pay federal income taxes on
their net investment income and net capital gain as they are treated as
partnerships for federal income tax purposes. All interest, dividends, gain and
loss of a Portfolio are deemed to have been "passed through" to the partners in
proportion to their holdings of the Portfolio.
SECURITIES TRANSACTIONS, INTEREST INCOME AND REALIZED GAIN AND LOSS - Securities
transactions are recorded on a trade date basis, interest income is accrued as
earned and realized gain and loss on investments sold are recorded on the basis
of identified cost. The cost basis of investments for federal income tax
purposes at May 31, 1998, is the same as for financial reporting purposes.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER - The investment adviser of Prime Money Market Portfolio and
Money Market Portfolio is Norwest Investment Management, Inc. ("Adviser"), an
indirect subsidiary of Norwest Corporation. The Adviser receives an advisory fee
from Core Trust with respect to Prime Money Market Portfolio and Money Market
Portfolio at annual rates of 0.40% and 0.20% , respectively, of the average
daily net assets for the first $300 million of net assets of each Portfolio,
declining to 0.32% and 0.12%, respectively, of the average daily net assets in
excess of $700 million.
ADMINISTRATIVE - The administrator of Core Trust is Forum Administrative
Services, LLC ("FAdS"). FAdS receives an administration fee of 0.05% of the
average daily net assets of each Portfolio. In addition, for the period ended
May 31, 1998, certain legal expenses were charged to the Portfolios by FAdS. The
respective amounts for Prime Money Market Portfolio and Money Market Portfolio
were $879 and $674.
CUSTODIAN - Norwest Bank, Minnesota, N.A., a subsidiary of Norwest Corporation,
serves as the custodian for the Portfolios and receives a fee of 0.02% of the
first $100 million of a Portfolio's average daily net assets, 0.015% of the next
$100 million of a Portfolio's average daily net assets and 0.01% of a
Portfolio's remaining average daily net assets.
PLACEMENT AGENT - Forum Financial Services, Inc.-Registered Trademark- acts as
Core Trust's placement agent pursuant to a separate agreement with Core Trust
and receives no compensation for its services.
OTHER SERVICE PROVIDERS - Forum Accounting Services, LLC ("FAcS") provides
portfolio accounting and interestholder recordkeeping services to each Portfolio
pursuant to a separate agreement.
NOTE 4. WAIVERS AND REIMBURSEMENTS
For the period ended May 31, 1998, the Adviser voluntarily waived a portion of
its advisory fees and FAdS voluntarily waived a portion of its administration
fees for Money Market Portfolio in the amounts of $646,233 and $838,386,
respectively. The Adviser and FAdS, at their discretion, may revise or
discontinue the voluntary fee waivers at any time.
CORE TRUST (DELAWARE)
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
NOTE 5. REORGANIZATION
In connection with the merger and division and the contemporaneous commencement
of operations of certain Portfolios on August 23, 1997, certain investors
contributed all or a portion of their net assets to the Portfolios. The fair
market value and tax cost basis of those contributions is as follows:
<TABLE>
<CAPTION>
MARKET TAX COST
PORTFOLIO VALUE BASIS
- ------------------------------------------------------------------------------------------- --------------- ---------------
<S> <C> <C>
Prime Money Market Portfolio............................................................... $ 2,699,819,155 $ 2,699,819,155
Money Market Portfolio..................................................................... 2,101,885,695 2,101,898,478
</TABLE>
CORE TRUST (DELAWARE)
26
<PAGE>
SCHEDULES OF INVESTMENTS MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
PRIME MONEY MARKET PORTFOLIO
- ------------------------------------------------------------------------
ASSET BACKED SECURITIES (1.3%)
42,386,942 WFP Tower B Finance Corp., Short-Term
STEERS Trust, Series A, 5.69% V/R,
12/8/98(a) $ 42,386,942
--------------
CERTIFICATES OF DEPOSIT (11.5%)
50,000,000 Abbey National Treasury Services,
London, 5.75%, 2/26/99 50,000,000
16,000,000 Banco Espirito Santo e Comercial de
Lisboa, New York Branch, 5.74%,
3/26/99 15,997,500
40,000,000 Bankers Trust Co., 5.91%, 8/7/98 39,993,614
47,000,000 Banque Paribas, New York Branch, 5.73%,
3/29/99 46,984,228
130,000,000 Deutsche Bank, New York Branch, 5.73%,
4/15/99 129,956,606
25,000,000 Generale Bank, New York Branch, 6.02%,
12/16/98 25,000,970
28,000,000 Societe Generale, New York Branch,
5.97%, 9/15/98 27,996,115
25,000,000 Societe Generale, New York Branch,
5.70%, 3/23/99 24,989,353
--------------
TOTAL CERTIFICATES OF DEPOSIT 360,918,386
--------------
COMMERCIAL PAPER (55.0%)
25,000,000 AGA Capital, Inc., 5.53%, 6/9/98(a) 24,969,278
10,000,000 Ace Overseas Corp., 5.45%, 10/5/98(a) 9,809,251
45,000,000 Asset Backed Capital Finance, Inc.,
5.78% V/R, 6/12/98(a) 45,000,000
10,000,000 Banca CRT Financial Corp., 5.41%, 8/7/98 9,899,314
45,000,000 Banco Rio de La Plata St, Bayerische
Vereinsbank, AG, LOC, 5.47%, 12/7/98 43,711,653
47,960,000 Bankers Trust New York Corp., 5.35%,
10/5/98 47,061,950
24,972,000 Barton Capital Corp., 5.58%, 6/19/98(a) 24,902,328
83,070,000 Bavaria GLB Corp., 5.51%, 7/15/98(a) 82,510,570
45,000,000 CC (USA), Inc., 5.53%, 7/14/98(a) 44,702,763
20,000,000 CC (USA), Inc., 5.59%, 7/15/98(a) 19,864,089
64,855,000 CPI Funding Corp., 5.55%, 6/25/98(a) 64,613,793
21,424,000 CPI Funding Corp., 5.50%, 8/25/98(a) 21,145,786
25,000,000 Centre Square Funding Corp., 5.58%,
6/15/98(a) 24,945,750
44,463,000 Citation Capital Corp., 5.58%,
7/21/98(a) 44,118,412
10,000,000 Citation Capital Corp., 5.56%, 8/4/98(a) 9,901,156
60,283,000 Citation Capital Corp. 5.50%, 9/1/98(a) 59,435,689
7,310,000 City of New York, NY, 5.72%, 7/20/98 7,310,000
10,000,000 COFCO Capital Corp., Credit Suisse First
Boston, LOC, 5.53%, 7/21/98 9,923,195
6,225,000 Cooperative Association of Tractor
Dealers, Inc., 5.51%, 7/13/98 6,184,984
15,400,000 Cooperative Association of Tractor
Dealers, Inc., 5.40%, 8/7/98 15,245,230
25,000,000 Corporate Asset Securitization Australia
Ltd., Inc., 5.55%, 6/10/98(a) 24,965,313
25,000,000 Creditanstalt Finance, Inc., 5.38%,
7/27/98 24,790,778
35,000,000 Diageo Capital plc, 5.40%, 7/27/98(a) 34,706,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
PRIME MONEY MARKET PORTFOLIO (continued)
- ------------------------------------------------------------------------
50,000,000 Diageo Capital plc, 5.40%, 7/28/98(a) $ 49,572,500
30,000,000 Galicia Funding Corp., Dresdner Bank AG,
LOC, 5.60%, 6/12/98 29,948,667
14,323,000 Galleon Capital Corp., 5.53%, 6/1/98(a) 14,323,000
9,895,000 Gotham Funding Corp., 5.59%, 6/5/98(a) 9,888,854
11,000,000 Hitachi Credit America Corp., 5.52%,
7/8/98 10,937,594
40,000,000 Lexington Parker Capital Co. LLC.,
5.50%, 8/21/98(a) 39,505,000
22,000,000 Market Street Funding Corp., 5.54%,
6/2/98(a) 21,996,614
30,354,000 Market Street Funding Corp., 5.54%,
6/16/98(a) 30,283,933
10,000,000 Mitsubishi Motor Credit, 5.63%, 6/15/98 9,978,087
50,000,000 Old Line Funding Corp., 5.54%, 6/1/98(a) 50,000,000
37,000,000 Pacific Dunlop Holdings, Inc., 5.54%,
6/5/98(a) 36,977,245
41,083,000 Perry Funding Corp., 5.57%, 6/1/98(a) 41,083,000
35,000,000 Perry Funding Corp., 5.57%, 8/17/98(a) 34,583,024
18,088,000 Repeat Offering Securitization Entity,
5.57%, 7/28/98(a) 17,928,479
36,000,000 Royal Bank of Canada, 5.38%, 7/28/98 35,693,340
34,000,000 San Paulo US Financial Corp., 5.49%,
7/13/98 33,782,230
10,000,000 Sigma Finance Corp., 5.71%, 6/15/98(a) 9,977,794
20,000,000 Silver Tower US Funding Corp., 5.54%,
8/13/98(a) 19,775,525
12,550,000 Silver Tower US Funding Corp., 5.53%,
8/14/98(a) 12,407,342
46,000,000 Silver Tower US Funding Corp., 5.54%,
11/18/98(a) 44,796,590
23,424,000 Silver Tower US Funding Corp., 5.53%,
11/30/98(a) 22,769,131
13,500,000 Sinochem American C.P., Inc., Credit
Suisse First Boston, LOC, 5.54%,
6/17/98 13,466,760
6,000,000 Special Purpose Accounts Receivables
Cooperative Corp., 5.55%, 7/31/98(a) 5,944,500
25,000,000 Special Purpose Accounts Receivables
Cooperative Corp., 5.55%, 8/12/98(a) 24,722,500
8,000,000 Sunkyoung America, Inc., Credit Suisse
LOC, 5.50%, 7/9/98 7,953,556
46,947,000 Sydney Capital Corp., 5.55%, 6/9/98(a) 46,889,099
24,492,000 Sydney Capital Corp., 5.51%, 7/1/98(a) 24,379,541
17,000,000 TI Group, Inc., 5.77%, 6/2/98 16,997,275
10,000,000 TI Group, Inc., 5.77%, 6/18/98 9,972,753
8,500,000 TI Group, Inc., 5.60%, 6/26/98 8,466,945
20,000,000 TI Group, Inc., 5.53%, 11/9/98 19,505,373
46,000,000 Thames Asset Global Securitization,
Inc., 5.57%, 6/18/98(a) 45,879,196
41,000,000 Thames Asset Global Securitization,
Inc., 5.52%, 7/6/98(a) 40,779,967
37,111,000 Thames Asset Global Securitization,
Inc., 5.52%, 7/15/98(a) 36,860,625
26,448,000 Three Rivers Funding Corp., 5.55%,
6/18/98(a) 26,378,684
29,000,000 Toshiba Capital (Asia) Ltd., 5.52%,
6/19/98 28,919,960
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
27
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
PRIME MONEY MARKET PORTFOLIO (continued)
- ------------------------------------------------------------------------
11,960,000 Toshiba International Finance (UK),
5.54%, 6/18/98 $ 11,928,711
11,000,000 Toshiba International Finance (UK),
5.52%, 7/6/98 10,940,967
8,400,000 Toshiba International Finance (UK),
5.52%, 7/10/98 8,349,768
20,660,000 Trident Capital Finance, Inc., 5.58%,
6/11/98(a) 20,627,977
34,750,000 Yamaha Motors Owner Trust, 5.66%,
6/15/98(a) 34,684,317
--------------
TOTAL COMMERCIAL PAPER 1,719,573,705
--------------
CORPORATE NOTES (11.3%)
28,000,000 Asset Backed Trust 1995 Series A-1,
5.65% V/R, 12/10/98(a) 28,000,000
28,000,000 Asset Backed Trust 1995 Series A-3,
5.68% V/R, 4/15/99(a) 28,000,000
10,000,000 Asset Backed Trust 1996 Series A-4,
5.67% V/R, 1/15/99(a) 10,000,000
15,000,000 Asset Backed Trust 1997 Series C, 5.66%
V/R, 6/15/98(a) 15,000,000
3,000,000 Beneficial Corp., 8.83%, 6/15/98 3,002,890
20,000,000 Beta Finance, Inc., 6.00%, 10/30/98(a) 20,000,000
25,000,000 BRAVO Trust Series 1997-1, 5.71% V/R,
10/15/98(a) 25,000,473
30,000,000 Bear Stearns & Co., Inc., 5.81% V/R,
3/15/01 30,000,000
14,000,000 Centauri Corp., 6.17%, 6/3/98(a) 14,000,000
30,000,000 Compagnie Bancaire (USA) Funding, Inc.,
6.03%, 9/17/98 30,000,798
6,000,000 Compagnie Bancaire (USA) Funding, Inc.,
6.15%, 12/28/98 6,016,015
15,000,000 CS First Boston, Inc., 5.78% V/R,
5/15/99 15,000,000
20,000,000 Medium Term Structured Enhanced Return
Trust (STEERS), Series 1997 A-27,
5.71% V/R, 8/21/98 20,000,000
20,000,000 Medium Term Structured Enhanced Return
Trust (STEERS), Series 1997 A-28,
5.65% V/R, 9/23/98(a) 20,000,000
40,000,000 Morgan Stanley Group, Inc., 5.79% V/R,
3/15/01, puttable 5/15/99 40,000,000
30,000,000 Morgan Stanley Group, Inc., 5.73% V/R,
5/15/01, puttable 5/15/99 30,000,000
20,000,000 Restructured Asset Certificates, Series
1996 MM-2-2, 5.84% V/R, 1/10/00(a) 20,000,000
--------------
TOTAL CORPORATE NOTES 354,020,176
--------------
FLOATING RATE FUNDING AGREEMENTS (6.9%)
115,000,000 General American Life Insurance Co.,
5.84% V/R, 3/20/30 115,000,000
30,000,000 Providian Life & Health Insurance Co.,
5.78% V/R, 6/1/99 30,000,000
40,000,000 Providian Life & Health Insurance Co.,
5.77% V/R, 6/18/99 40,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
PRIME MONEY MARKET PORTFOLIO (continued)
- ------------------------------------------------------------------------
30,000,000 Transamerica Life Insurance, 5.66% V/R,
4/12/99 $ 30,000,000
--------------
TOTAL FLOATING RATE FUNDING AGREEMENTS 215,000,000
--------------
MASTER NOTES (1.0%)
20,000,000 American General Finance, Inc. 20,000,000
10,000,000 General Electric Co. 10,000,000
--------------
TOTAL MASTER NOTES 30,000,000
--------------
MUNICIPAL BONDS & NOTES (0.4%)
4,700,000 Durham, NC, COP, Series B, 5.54% V/R,
7/1/03 4,700,000
590,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 590,000
1,105,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 1,105,000
1,235,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 1,235,000
665,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 665,000
690,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 690,000
1,555,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 1,555,000
1,300,000 Prince William County, VA, Taxable
Notes, Series A, Wachovia Bank of
North Carolina, LOC, 5.54% V/R, 3/1/17 1,300,000
--------------
TOTAL MUNICIPAL BONDS & NOTES 11,840,000
--------------
TIME DEPOSITS (12.6%)
35,000,000 ABN Amro Bank N.V., 5.69%, 6/1/98 35,000,000
27,800,000 Banque Paribas, 5.75%, 6/1/98 27,800,000
67,000,000 Credit Suisse, 5.59%, 6/1/98 67,000,000
105,000,000 Erste Bank de Oestereich, 5.69%, 6/1/98 105,000,000
26,673,946 PNC Bank, N.A. Nassau, 5.66%, 6/1/98 26,673,947
132,000,000 Union Bank of Switzerland, 5.69%, 6/1/98 132,000,000
--------------
TOTAL TIME DEPOSITS 393,473,947
--------------
TOTAL INVESTMENTS (100.00%) $3,127,213,156
--------------
--------------
- ------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
- ------------------------------------------------------------------------
ASSET BACKED SECURITIES (1.5%)
34,501,000 WFP Tower B Finance Corp., Short-Term
STEERS Trust, Series A, 5.69% V/R,
12/8/98(a) $ 34,501,000
--------------
CERTIFICATES OF DEPOSIT (15.6%)
40,000,000 Abbey National Treasury Services,
London, 5.75%, 2/26/99 40,000,000
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
28
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MONEY MARKET PORTFOLIO (continued)
- ------------------------------------------------------------------------
50,000,000 Banco Espirito Santo e Comercial de
Lisboa, NY Branch, 5.74%, 3/26/99 $ 49,992,180
27,200,000 Bankers Trust Co., 5.91%, 8/7/98 27,195,661
40,000,000 Banque Paribas, New York Branch, 5.73%,
3/29/99 39,986,578
68,000,000 Deutsche Bank, New York Branch, 5.73%,
4/15/99 67,977,304
15,000,000 Generale Bank, New York Branch, 6.02%,
12/16/98 15,000,582
15,255,000 Kansallis-Osake-Pankki New York Branch,
Merita Bank Ltd., 9.75%, 12/15/98 15,576,636
12,100,000 Royal Bank of Canada, New York Branch,
5.80%, 10/1/98 12,104,867
20,000,000 Societe Generale, New York Branch,
5.97%, 9/15/98 19,997,226
25,000,000 Societe Generale, New York Branch,
5.70%, 3/23/99 24,989,353
55,000,000 Societe Generale, New York Branch,
5.80%, 4/28/99 54,980,905
--------------
TOTAL CERTIFICATES OF DEPOSIT 367,801,292
--------------
COMMERCIAL PAPER (48.2%)
14,200,000 AGA Capital, Inc., 5.53%, 6/4/98(a) 14,193,456
36,750,000 Ace Overseas Corp., 5.55%, 6/10/98(a) 36,699,009
10,000,000 Ace Overseas Corp., 5.45%, 10/5/98 9,809,252
40,000,000 Asset Backed Capital Finance, Inc.,
5.78% V/R, 6/12/98(a) 40,000,000
21,000,000 Asset Backed Capital Finance, Inc.,
5.51%, 7/8/98(a) 20,881,076
14,500,000 Asset Backed Capital Finance, Inc.,
5.57%, 7/22/98(a) 14,385,583
5,000,000 Banca CRT Financial Corp., 5.60%,
6/15/98 4,989,111
5,000,000 Banca CRT Financial Corp., 5.60%, 7/6/98 4,972,778
10,000,000 Banca CRT Financial Corp., 5.40%, 8/3/98 9,905,500
12,500,000 Banca CRT Financial Corp., 5.55%,
10/8/98 12,251,407
12,000,000 Banca CRT Financial Corp., 5.55%,
10/15/98 11,748,400
40,000,000 Banco Rio de La Plata St, Bayerische
Vereinsbank, A.G., LOC, 5.47%, 12/7/98 38,851,301
20,000,000 Banner Receivables Corp., 5.59%,
6/4/98(a) 19,990,683
23,102,000 Bavaria GLB Corp., 5.52%, 6/16/98(a) 23,048,866
24,050,000 Bavaria Universal Funding, 5.54%,
6/12/98(a) 24,009,289
18,000,000 Beta Finance, Inc., 5.40%, 7/16/98(a) 17,878,500
17,000,000 CC (USA), Inc., 5.58%, 6/11/98(a) 16,973,650
10,000,000 CC (USA), Inc., 5.56%, 7/15/98(a) 9,932,045
29,000,000 CC (USA), Inc., 5.55%, 8/11/98(a) 28,682,571
20,000,000 CPI Funding Corp., 5.55%, 6/25/98(a) 19,925,734
24,300,000 Centre Square Funding Corp., 5.58%,
6/15/98(a) 24,247,269
8,600,000 Certain Funding Corp., 5.60%, 8/10/98(a) 8,506,356
16,461,000 Citation Capital Corp., 5.56%, 8/4/98(a) 16,298,292
20,300,000 Cooperative Association of Tractor
Dealers, 5.51%, 7/13/98 20,169,505
50,000,000 Corporate Asset Securitization Australia
Ltd., Inc., 5.55%, 6/8/98(a) 49,946,042
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MONEY MARKET PORTFOLIO (continued)
- ------------------------------------------------------------------------
25,000,000 Corporate Asset Securitization Australia
Ltd., Inc., 5.55%, 7/15/98(a) $ 24,831,639
19,000,000 Creditanstalt Finance, Inc., 5.38%,
7/27/98 18,840,991
10,000,000 Galicia Funding Corp., Dresdner Bank AG,
LOC, 5.60%, 6/12/98 9,982,889
25,000,000 Lexington Parker Capital Co. LLC.,
5.41%, 7/24/98(a) 24,800,882
10,000,000 Lexington Parker Capital Co. LLC.,
5.50%, 8/21/98(a) 9,876,251
20,266,000 Lexington Parker Capital Co. LLC.,
5.49%, 10/8/98(a) 19,867,318
41,436,000 Lexington Parker Capital Co. LLC.,
5.47%, 10/16/98(a) 40,573,452
35,000,000 Market Street Funding Corp., 5.54%,
6/2/98(a) 34,994,614
27,108,000 Old Line Funding Corp., 5.54%, 6/1/98(a) 27,108,000
7,404,000 Old Line Funding Corp., 5.54%,
6/11/98(a) 7,392,606
13,500,000 Orix America, Inc., 5.32%, 10/9/98 13,240,650
14,400,000 Pacific Dunlop Holdings, Inc., 5.54%,
6/2/98(a) 14,397,786
35,000,000 Perry Funding Corp., 5.57%, 6/1/98(a) 35,000,000
38,749,000 Perry Funding Corp., 5.57%, 8/17/98(a) 38,287,360
28,000,000 Royal Bank of Canada, 5.38%, 7/28/98 27,761,487
5,000,000 Sigma Finance Corp., 5.71%, 6/15/98(a) 4,988,897
18,420,000 Sigma Finance Corp., 5.47%, 10/1/98(a) 18,078,545
19,815,000 Silver Tower US Funding Corp., 5.54%,
8/13/98(a) 19,592,602
20,100,000 Silver Tower US Funding Corp., 5.54%,
11/18/98(a) 19,574,163
31,250,000 SunkYong America, Inc., Credit Suisse,
LOC, 5.53%, 6/17/98 31,173,195
20,000,000 Sydney Capital Corp., 5.51%, 7/1/98(a) 19,908,167
15,000,000 TI Group, Inc., 5.50%, 10/23/98 14,670,001
10,000,000 TI Group, Inc., 5.53%, 11/9/98 9,752,686
62,000,000 Thames Asset Global Securitization,
Inc., 5.57%, 6/18/98(a) 61,837,159
32,504,000 Thames Asset Global Securitization,
Inc., 5.52%, 7/6/98(a) 32,329,562
16,784,000 Three Rivers Funding Corp., 5.52%,
7/17/98(a) 16,665,617
11,526,000 Trident Capital Finance, Inc., 5.58%,
6/12/98(a) 11,506,348
32,850,000 Yamaha Motors Owner Trust, 5.66%,
6/15/98(a) 32,778,077
--------------
TOTAL COMMERCIAL PAPER 1,138,106,619
--------------
CORPORATE NOTES (12.2%)
19,000,000 Asset Backed Trust 1995 Series A-1,
5.65% V/R, 12/10/98(a) 19,000,000
22,000,000 Asset Backed Trust 1995 Series A-3,
5.68% V/R, 4/15/99(a) 22,000,000
5,000,000 Asset Backed Trust 1996 Series A-4,
5.67% V/R, 1/15/99(a) 5,000,000
10,000,000 Asset Backed Trust 1997 Series C, 5.66%
V/R, 6/15/98(a) 10,000,000
2,500,000 BT Securities Corp., 5.93% V/R, 9/1/98 2,501,285
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
29
<PAGE>
SCHEDULES OF INVESTMENTS (CONCLUDED) MAY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MONEY MARKET PORTFOLIO (continued)
- ------------------------------------------------------------------------
20,000,000 Bear Stearns & Co., Inc., 5.81% V/R,
5/15/99 $ 20,000,000
3,000,000 Beneficial Corp., 8.83%, 6/15/98 3,002,890
20,000,000 Beta Finance, Inc., 6.00%, 10/30/98(a) 20,000,000
20,000,000 BRAVO Trust Series 1997-1, 5.71% V/R,
10/15/98(a) 20,000,378
15,000,000 CC (USA), Inc., 6.20%, 6/3/98(a) 15,000,054
10,000,000 CS First Boston, Inc., 5.78% V/R,
6/15/99 10,000,000
11,000,000 Centauri Corp., 6.17%, 6/3/98(a) 11,000,000
20,000,000 Compagnie Bancaire (USA) Funding, Inc.,
6.03%, 9/17/98 20,000,532
10,100,000 Japan Financial Corp., 9.25%, 9/21/98 10,195,258
20,000,000 Medium Term Structured Enhanced Return
Trust (STEERS), Series 1997 A-27,
5.71% V/R, 8/21/98(a) 20,000,000
20,000,000 Medium Term Structured Enhanced Return
Trust (STEERS), Series 1997 A-28,
5.65% V/R, 9/23/98(a) 20,000,000
30,000,000 Morgan Stanley Group, Inc., 5.79% V/R,
3/15/01, puttable 6/15/99 30,000,000
20,000,000 Morgan Stanley Group, Inc., 5.73% V/R,
5/15/01, puttable 6/15/99 20,000,000
10,000,000 Restructured Asset Certificates, Series
1996 MM-2-2, 5.84% V/R, 1/10/00(a) 10,000,000
--------------
TOTAL CORPORATE NOTES 287,700,397
--------------
FLOATING RATE FUNDING AGREEMENTS (6.8%)
85,000,000 General American Life Insurance Co.,
5.84% V/R, 3/20/30 85,000,000
35,000,000 Providian Life & Health Insurance Co.,
5.77% V/R, 4/18/99 35,000,000
20,000,000 Providian Life & Health Insurance Co.,
5.78% V/R, 6/1/99 20,000,000
20,000,000 Transamerica Life Insurance, 5.66% V/R,
4/12/99 20,000,000
--------------
TOTAL FLOATING RATE FUNDING AGREEMENTS 160,000,000
--------------
MASTER NOTES (0.8%)
10,000,000 American General Finance, Inc., 5.61% 10,000,000
10,000,000 General Electric Co., 5.59% 10,000,000
--------------
TOTAL MASTER NOTES 20,000,000
--------------
MUNICIPAL NOTES (0.4%)
3,600,000 Durham, NC, COP, Series B, Wachovia
Bank, LOC, 5.54% V/R, 7/1/03 3,600,000
460,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 460,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
MONEY MARKET PORTFOLIO (continued)
- ------------------------------------------------------------------------
860,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 $ 860,000
965,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 965,000
435,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 435,000
410,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 410,000
1,135,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 1,135,000
1,380,000 Kalamazoo Funding Co., Old Kent Bank,
LOC, 5.70% V/R, 12/15/26 1,380,000
1,000,000 Prince William County, VA, Taxable
Notes, Series A, Wachovia Bank of
North Carolina, LOC, 5.54% V/R, 3/1/17 1,000,000
--------------
TOTAL MUNICIPAL NOTES 10,245,000
--------------
TIME DEPOSITS (14.5%)
20,000,000 ABN AMRO Toronto Branch, 5.69%, 6/1/98 20,000,000
10,000,000 Banque Paribas Canada, Toronto, 5.75%,
6/1/98 10,000,000
60,000,000 Credit Suisse, 5.60%, 6/1/98 60,000,000
95,000,000 Erste Bank der Oestereich, 5.69%, 6/1/98 95,000,000
32,171,878 PNC Bank, N.A., 5.66%, 6/1/98 32,171,878
40,000,000 Union Bank of Switzerland, 5.60%, 6/1/98 40,000,000
85,000,000 Union Bank of Switzerland, 5.69%, 6/1/98 85,000,000
--------------
TOTAL TIME DEPOSITS 342,171,878
--------------
TOTAL INVESTMENTS (100.0%) $2,360,526,186
--------------
--------------
</TABLE>
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS
- --------------------------------------------------------------------------------
(a) Securities that may be resold to "qualified institutional buyers" under rule
144A or securities offered pursuant to 4(2) of the Securities Act of 1933,
as amended. The Board of Trustees has determined these securities to be
liquid.
ABBREVIATIONS
<TABLE>
<S> <C>
COP Certificate of Participation
LOC Letter of Credit
V/R Variable rate -- these securities are deemed to have a
maturity remaining until the next adjustment
of the interest rate or the longer of the
demand period or readjustment. The interest
rates shown reflect the rate in effect on
May 31, 1998.
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements
CORE TRUST (DELAWARE)
30
<PAGE>
Norwest Advantage Funds
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PAID
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Elsewhere 1-800-338-1348
Norwest Investment Management, Inc.
Investment Adviser
Norwest Bank Minnesota, N.A.
Transfer Agent
Custodian
Forum Financial Services, Inc.
Manager and Distributor
- -C- 1998 NORWEST ADVANTAGE FUNDS 7/98
THIS REPORT IS FOR DISTRIBUTION ONLY TO SHAREHOLDERS AND MAY BE DISTRIBUTED
TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY CURRENT PROSPECTUSES OF THE
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