<PAGE> 1
INVESTMENT ADVISER OLDE
OLDE ASSET MANAGEMENT, INC. CUSTODIAN FUND
ANNUAL REPORT
PRINCIPAL UNDERWRITER OCTOBER 31, 1996
OLDE DISCOUNT CORPORATION
CUSTODIAN
THE BANK OF NEW YORK
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
TRANSFER AGENT
OLDE DISCOUNT CORPORATION
[DRAWING]
OLDE MONEY
For information regarding your MARKET SERIES
account, telephone your local
OLDE Discount branch office
or OLDE PREMIUM
OLDE Discount Customer Service MONEY MARKET SERIES
at: 1-800-235-3100
This report is authorized for OLDE PREMIUM PLUS
use by nonshareholders only when MONEY MARKET SERIES
accompanied or preceded by a
current prospectus of
OLDE Custodian Fund.
<PAGE> 2
OLDE CUSTODIAN FUND
November 19, 1996
Dear Shareholder,
We are pleased to present the Annual Report for the year ended October 31,
1996, for OLDE Custodian Fund. The Fund consists of OLDE Money Market Series,
OLDE Premium Money Market Series, and OLDE Premium Plus Money Market Series.
This report contains audited schedules of investments and financial statements
for all three Series.
Over much of 1996, interest rates on short term money market instruments have
fluctuated partly in response to uncertainty with regard to inflation. Market
participants feared that economic growth and tight labor markets would lead to
price pressures, which would in turn result in tightening of rates by the
Federal Reserve. Such fears have proven unfounded as inflation has remained
moderate and the Fed has held rates constant since January 31.
Opportunities for money fund investors arose whenever market rates turned up.
For example, the Adviser purchased a number of attractive longer maturity money
market securities. Additionally, the Adviser continued its strategy of
purchasing variable rate securities with yields in excess of comparable
non-variable rate securities.
An unwinding of investors' preconceived inflation fears commenced at the
beginning of the fourth quarter, bringing narrower spreads between shorter and
longer term money market securities and making it less rewarding to extend the
weighted average maturities of the portfolios. As always, the Adviser will give
primary attention to the quality and liquidity of investments.
Sincerely,
OLDE CUSTODIAN FUND
Lisa S. Fildes
President
2
<PAGE> 3
OLDE CUSTODIAN FUND
OLDE MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 35.22%
$ 5,455,000 C.S. First Boston, 5.350%, due 11/01/96 ........................ $ 5,455,000
2,840,000 Merrill Lynch & Company, 5.630%, due 11/01/96 .................. 2,840,000
5,640,000 Countrywide Home Loans Inc., 5.420%, due 11/04/96 .............. 5,637,453
2,000,000 Heller Financial Incorporated, 5.370%, due 11/05/96 ............ 1,998,807
3,960,000 Whirlpool Corporation, 5.370%, due 11/06/96 .................... 3,957,047
4,870,000 General Motors Acceptance Corporation, 5.450%, due 11/07/96 .... 4,865,576
4,000,000 Paine Webber Group, 5.500%, due 11/07/96 ....................... 3,996,333
3,000,000 Whirlpool Corporation, 5.370%, due 11/08/96 .................... 2,996,868
4,000,000 Paine Webber Group, 5.500%, due 11/08/96 ....................... 3,995,722
4,500,000 Paine Webber Group, 5.380%, due 11/12/96 ....................... 4,492,610
5,000,000 Heller Financial Incorporated, 5.410%, due 11/13/96 ............ 4,990,983
2,455,000 Household Finance Corporation, 5.250%, due 11/14/96 ............ 2,450,346
4,020,000 Heller Financial Incorporated, 5.410%, due 11/14/96 ............ 4,012,147
4,000,000 Salomon Incorporated, 5.460%, due 11/15/96 ..................... 3,991,507
1,655,000 Heller Financial Incorporated, 5.370%, due 11/15/96 ............ 1,651,544
4,000,000 Prudential Funding, 5.270%, due 11/18/96 ....................... 3,990,046
1,825,000 Heller Financial Incorporated, 5.370%, due 11/18/96 ............ 1,820,372
2,000,000 Heller Financial Incorporated, 5.370%, due 11/19/96 ............ 1,994,630
3,855,000 Prudential Funding, 5.270%, due 11/19/96 ....................... 3,844,842
4,375,000 Whirlpool Financial Corporation, 5.300%, due 11/20/96 .......... 4,362,762
4,380,000 Whirlpool Financial Corporation, 5.300%, due 11/21/96 .......... 4,367,103
3,475,000 Household Finance Corporation, 5.25%, due 11/22/96 ............. 3,464,358
695,000 Heller Financial Incorporated, 5.330%, due 11/22/96 ............ 692,839
5,240,000 C.S. First Boston, 5.270%, due 11/25/96 ........................ 5,221,590
5,940,000 G.E. Capital Corporation, 5.250%, due 11/29/96 ................. 5,915,745
6,000,000 American General Finance, 5.250%, due 12/02/96 ................. 5,972,875
5,800,000 Sears Acceptance Corporation 5.260%, due 12/03/96 .............. 5,772,882
4,355,000 G.E. Capital Corporation, 5.250%, due 12/04/96 ................. 4,334,042
6,385,000 Countrywide Home Loans Inc., 5.270%, due 12/05/96 .............. 6,353,220
3,635,000 Salomon Incorporated, 5.550%, due 12/24/96 ..................... 3,605,299
4,550,000 Salomon Incorporated, 5.530%, due 12/26/96 ..................... 4,511,558
4,805,000 Paine Webber Group, 5.450%, due 01/02/97 ....................... 4,759,900
3,125,000 C.S. First Boston, 5.330%, due 01/07/97 ........................ 3,094,001
------------
131,410,007
YANKEE COMMERCIAL PAPER - 8.15%
4,000,000 American Honda Finance Corporation, 5.440%, due 11/05/96 ....... 3,997,582
3,095,000 American Honda Finance Corporation, 5.440%, due 11/06/96 ....... 3,092,662
2,390,000 Toshiba International Finance UK, 5.380%, due 11/22/96 ......... 2,382,499
4,960,000 Ford Credit Europe PLC, 5.250%, due 11/26/96 ................... 4,941,917
4,815,000 Hitachi Credit America, 5.440%, due 11/27/96 ................... 4,796,082
2,510,000 Hitachi Credit America, 5.280%, due 12/23/96 ................... 2,490,857
4,290,000 Toshiba International Finance UK, 5.600%, due 01/14/97 ......... 4,240,617
4,500,000 Electricity Corporation of New Zealand, 5.410%, due 02/04/97.... 4,435,756
------------
30,377,972
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT-TERM NOTES - 50.02%
$ 8,000,000 First Bank National Association, 5.325%, due 12/18/96 (a)....... $ 7,999,900
3,000,000 Keycorp, 8.200%, due 12/30/96 ................................. 3,013,246
8,000,000 Sears Acceptance Corporation, 5.600%, due 01/06/97 ............. 8,002,900
4,270,000 Traveler's Incorporated, 7.625%, due 01/15/97 .................. 4,288,828
10,000,000 Merrill Lynch & Company, 5.511%, due 01/24/97 (a) .............. 9,999,775
6,000,000 American Express Centurion Bank, 5.353%, due 02/12/97 (a) ...... 5,999,992
12,000,000 Key Bank of Maine, 5.304%, due 02/14/97 (a) .................... 11,996,616
10,000,000 Abbey National Bank, 5.279%, due 02/21/97 (a) .................. 9,998,220
3,000,000 Ford Motor Credit Company, 5.625%, due 03/03/97 ................ 2,999,021
11,000,000 PNC Bank, National Association, 5.295%, due 04/01/97 (a) ....... 10,996,222
3,300,000 Associates Corporation, 9.700%, due 05/01/97 ................... 3,361,529
8,000,000 American Honda Finance Corporation, 5.422%, due 05/05/97 (a) ... 7,997,984
6,000,000 Ford Motor Credit Company, 5.530%, due 05/12/97 (a) ............ 6,000,861
8,000,000 Paccar Financial Corporation, 5.262%, due 05/14/97 (a) ......... 7,996,272
8,000,000 FCC National Bank, 6.040%, due 06/19/97 ........................ 7,997,112
2,000,000 John Deere Capital Corporation, 5.950%, due 06/30/97 ........... 1,998,503
4,000,000 G.E. Capital Corporation, 5.469%, due 07/08/97 (a) ............. 4,000,000
12,000,000 Morgan Stanley Group, 5.511%, due 07/10/97 (a) ................. 12,000,000
5,000,000 American Express Centurion Bank, 5.353%, due 07/11/97 (a) ...... 5,000,000
3,000,000 Abbey National Bank, 5.290%, due 07/15/97 (a) .................. 2,998,692
10,000,000 Dean Witter, Discover & Company, 5.325%, due 08/08/97 (a) ...... 9,997,372
3,000,000 IBM Credit Corporation, 5.740%, due 08/14/97 ................... 2,998,416
7,000,000 Paccar Financial Corporation, 5.254%, due 09/22/97 (a) ......... 6,994,790
4,000,000 Australia & New Zealand, 5.900%, due 09/23/97 .................. 4,005,759
5,000,000 PNC Bank, National Association, 5.338%, due 10/01/97 (a) ....... 4,996,393
7,000,000 Province of Ontario, 5.700%, due 10/01/97 ...................... 6,980,067
6,000,000 Merrill Lynch & Company, 5.415%, due 10/03/97 (a) .............. 6,000,000
5,000,000 American Express Centurion Bank, 5.345%, due 10/10/97 (a) ...... 5,000,000
5,000,000 Republic Mase Australia, 5.650%, due 10/31/97 .................. 4,995,223
------------
186,613,693
U.S. GOVERNMENT SECURITIES - 2.43%
4,000,000 U.S. Treasury Note, 6.875%, due 03/31/97 ....................... 4,022,403
5,000,000 U.S. Treasury Note, 6.125%, due 06/02/97 ....................... 5,007,933
------------
9,030,336
U.S. GOVERNMENT AGENCY SECURITIES - 3.88%
2,500,000 Tennessee Valley Authority, 4.600%, due 12/16/96 ............... 2,497,348
3,000,000 Federal Farm Credit Bank, 5.400%, due 04/01/97 ................. 2,998,093
9,000,000 Student Loan Marketing Association, 5.620%, due 06/30/97 ....... 8,975,986
------------
14,471,427
------------
TOTAL INVESTMENTS - 99.7% .............. 371,903,435
OTHER ASSETS LESS LIABILITIES - 0.3% ... 1,243,447
------------
NET ASSETS - 100.0% .................... $373,146,882
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates
as of October 31, 1996.
See accompanying notes.
4
<PAGE> 5
OLDE CUSTODIAN FUND
OLDE MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1) ..................................... $371,903,435
Cash ....................................................................... 3,553
Interest receivable ........................................................ 1,781,784
Prepaid expenses ........................................................... 36,121
------------
TOTAL ASSETS ......................................................... 373,724,893
LIABILITIES:
Dividends payable (Note 2) ................................................. 320,959
Accrued expenses ........................................................... 164,592
Payable to OLDE Asset Management, Inc. ..................................... 92,460
------------
TOTAL LIABILITIES .................................................... 578,011
------------
NET ASSETS applicable to 373,146,882 outstanding shares,
unlimited number of shares authorized, $0.01 par value ..................... $373,146,882
============
NET ASSET VALUE, offering and redemption price per share
on 373,146,882 shares of beneficial interest outstanding ................... $1.00
============
</TABLE>
OLDE MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1996
<TABLE>
<S> <C>
INTEREST INCOME (Note 1): .................................................... $ 18,858,189
EXPENSES:
Management fees ............................................................ 1,685,820
Transfer agent fees......................................................... 1,225,507
Custodian fees ............................................................. 26,630
Professional fees .......................................................... 18,333
Accounting fees ............................................................ 16,500
Printing and postage ....................................................... 52,697
Trustee fees ............................................................... 7,060
Insurance .................................................................. 9,581
Registration costs ......................................................... 118,683
12b-1 distribution costs ................................................... 210,829
------------
TOTAL EXPENSES ....................................................... 3,371,640
------------
NET INVESTMENT INCOME ........................................................ $ 15,486,549
============
</TABLE>
See accompanying notes.
5
<PAGE> 6
OLDE CUSTODIAN FUND
OLDE MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1996 1995
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 15,486,549 $ 12,653,715
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ........................................... (15,486,549) (12,653,715)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares ................................... 1,465,487,864 1,147,453,697
Net asset value of shares issued in reinvestment of dividends.... 14,559,552 11,866,662
--------------- ---------------
................................................................. 1,480,047,416 1,159,320,359
Cost of shares redeemed ......................................... (1,420,132,540) (1,055,376,105)
--------------- ---------------
Net increase in shareholders' equity from share transactions .... 59,914,876 103,944,254
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY .............................. 59,914,876 103,944,254
SHAREHOLDERS' EQUITY:
At beginning of year ............................................ 313,232,006 209,287,752
--------------- ---------------
At end of year .................................................. $ 373,146,882 $ 313,232,006
=============== ===============
</TABLE>
OLDE MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR END OCTOBER 31
1996 1995 1994 1993 1992
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ............ $1.00 $1.00 $1.00 $1.00 $1.00
INVESTMENT OPERATIONS:
Net investment income ...................... 0.0460 0.0487 0.0293 0.0230 0.0337
DISTRIBUTIONS:
Dividends from net investment income ....... (0.0460) (0.0487) (0.0293) (0.0230) (0.0337)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR .................. $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= =======
Total return (annualized) ................. +4.60% +4.87% +2.93% +2.30% +3.37%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)... $373,147 $313,232 $209,288 $206,775 $159,211
Ratio of expenses to average net assets .... 1.00% 1.07% 1.05% 1.10% 1.10%
Ratio of net investment income
to average net assets ...................... 4.60% 4.87% 2.93% 2.30% 3.37%
</TABLE>
See accompanying notes.
6
<PAGE> 7
OLDE CUSTODIAN FUND
OLDE PREMIUM MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 32.13%
$ 3,600,000 Paine Webber Group, 5.400%, due 11/01/96 ......................... $ 3,600,000
4,000,000 General Motors Acceptance Corporation, 5.450%, due 11/04/96....... 3,998,183
4,425,000 Sears Acceptance Corporation, 5.420%, due 11/05/96 ............... 4,422,335
3,280,000 American Express Credit Corporation, 5.260%, due 11/06/96 ........ 3,277,604
3,000,000 Sears Acceptance Corporation, 5.260%, due 11/07/96 ............... 2,997,370
3,040,000 Whirlpool Corporation, 5.370%, due 11/08/96 ...................... 3,036,826
5,000,000 C.S. First Boston, 5.290%, due 11/08/96 .......................... 4,994,857
1,675,000 Merrill Lynch & Company, 5.26%, due 11/12/96 ..................... 1,672,308
3,555,000 Paine Webber Group, 5.370%, due 11/13/96 ......................... 3,548,631
2,380,000 Household Finance Corporation, 5.250%, due 11/14/96 .............. 2,375,488
2,385,000 Heller Financial Incorporated, 5.330%, due 11/14/96 ............. 2,380,410
3,880,000 Whirlpool Financial Corporation, 5.300%, due 11/15/96 ............ 3,872,003
3,045,000 Household Finance Corporation, 5.250%, due 11/19/96 .............. 3,037,007
4,150,000 Whirlpool Corporation, 5.300%, due 11/20/96 ...................... 4,138,392
4,855,000 Countrywide Home Loans Inc., 5.270%, due 11/21/96 ................ 4,840,786
5,690,000 American General Finance, 5.250%, due 11/26/96 ................... 5,669,255
3,515,000 G.E. Capital Corporation, 5.240%, due 11/29/96 ................... 3,500,674
3,135,000 Heller Financial Incorporated, 5.320%, due 12/03/96............... 3,120,175
1,840,000 Countrywide Home Loans Inc., 5.290%, due 12/05/96 ................ 1,830,807
2,915,000 Countrywide Home Loans Inc., 5.270%, due 12/05/96 ................ 2,900,491
3,500,000 Salomon Incorporated, 5.550%, due 12/24/96 ....................... 3,471,402
2,500,000 Salomon Incorporated, 5.530%, due 12/26/96 ....................... 2,478,878
------------
75,163,882
YANKEE COMMERCIAL PAPER - 10.40%
2,305,000 B.H.P. Finance U.S.A., 5.450%, due 11/12/96 ...................... 2,301,161
4,270,000 American Honda Finance Corporation, 5.280%, due 11/18/96 ......... 4,259,354
2,680,000 Hitachi Credit America, 5.430%, due 11/22/96 ..................... 2,671,511
3,260,000 Atlas Copco AB, 5.370%, due 11/25/96 ............................. 3,248,329
3,000,000 Hitachi Credit America, 5.440%, due 11/27/96 ..................... 2,988,213
2,975,000 American Honda Finance Corporation, 5.280%, due 12/02/96 ......... 2,961,474
2,480,000 American Honda Finance Corporation, 5.300%, due 12/17/96 ......... 2,463,205
3,500,000 Electricity Corporation of New Zealand, 5.410%, due 02/04/97 ..... 3,450,033
------------
24,343,280
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT-TERM NOTES - 49.91%
$ 5,000,000 First Bank National Association, 5.325%, due 12/18/96 (a) ........ $ 4,999,937
3,000,000 Keycorp, 8.200%, due 12/30/96 .................................... 3,013,245
4,000,000 Sears Acceptance Corporation, 5.600%, due 01/06/97 ............... 4,001,449
1,775,000 General Motors Acceptance Corporation, 7.550%, due 01/14/97 ...... 1,781,029
4,000,000 Traveler's Incorporated, 7.625%, due 01/15/97 .................... 4,017,638
4,000,000 Merrill Lynch & Company, 5.511%, due 01/24/97 (a) ................ 3,999,910
2,000,000 American Express Centurion Bank, 5.353%, due 02/12/97 (a) ........ 1,999,997
3,000,000 Key Bank of Maine, 5.304%, due 02/14/97 (a) ...................... 2,999,155
5,000,000 Abbey National Bank, 5.279%, due 02/21/97 (a) .................... 4,999,111
8,000,000 Bayerische Landesbank, New York, 5.288%, due 03/03/97 (a) ........ 7,997,394
4,000,000 PNC Bank, National Association, 5.295%, due 04/01/97 (a) ......... 3,998,626
2,000,000 American Honda Finance Corporation, 5.422%, due 05/05/97 (a) ..... 1,999,495
4,000,000 Ford Motor Credit Company, 5.530%, due 05/12/97 (a) .............. 4,000,574
7,000,000 Paccar Financial Corporation, 5.262%, due 05/14/97 (a) ........... 6,996,738
5,000,000 FCC National Bank, 6.040%, due 06/19/97 .......................... 4,998,195
4,000,000 John Deere Capital Corporation, 5.950%, due 06/30/97 ............. 3,997,006
3,000,000 G.E. Capital Corporation, 5.469%, due 07/08/97 (a)................ 3,000,000
10,000,000 Morgan Stanley Group, 5.511%, due 07/10/97 (a) ................... 10,000,000
3,000,000 American Express Centurion Bank, 5.353%, due 07/11/97 (a) ........ 3,000,000
2,000,000 Abbey National Bank, 5.290%, due 07/15/97 (a) .................... 1,999,129
5,000,000 Dean Witter, Discover & Company, 5.325%, due 08/08/97 (a)......... 4,998,686
4,000,000 IBM Credit Corporation, 5.740%, due 08/14/97 ..................... 3,997,888
4,000,000 Ford Motor Credit Company, 5.633%, due 09/02/97 (a) .............. 4,002,903
3,000,000 Paccar Financial Corporation, 5.254%, due 09/22/97 (a) ........... 2,997,767
2,000,000 Australia & New Zealand Bank, 5.900%, due 09/23/97 ............... 2,002,880
3,000,000 Province of Ontario, 5.700%, due 10/01/97 ........................ 2,991,458
6,000,000 PNC Bank, National Association, 5.338%, due 10/01/97 (a) ......... 5,995,672
3,000,000 American Express Centurion Bank, 5.345%, due 10/10/97 (a) ........ 3,000,000
3,000,000 Republic Mase Australia, 5.650%, due 10/31/97 .................... 2,997,134
------------
116,783,016
U.S. GOVERNMENT SECURITIES - 3.00%
3,000,000 U.S. Treasury Note, 6.875%, due 03/31/97 ......................... 3,016,802
4,000,000 U.S. Treasury Note, 6.125%, due 06/02/97 ......................... 4,006,416
------------
7,023,218
U.S. GOVERNMENT AGENCY SECURITIES - 4.26%
4,000,000 Federal Farm Credit Bank, 5.400%, due 04/01/97 ................... 3,997,458
6,000,000 Student Loan Marketing Association, 5.620%, due 06/30/97 ......... 5,983,991
------------
9,981,449
------------
TOTAL INVESTMENTS - 99.7% ........................ 233,294,845
OTHER ASSETS LESS LIABILITIES - 0.3% ............. 667,547
------------
NET ASSETS - 100.0% .............................. $233,962,392
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates
as of October 31, 1996.
See accompanying notes.
8
<PAGE> 9
OLDE CUSTODIAN FUND
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1) ................................... $233,294,845
Cash ..................................................................... 2,024
Interest receivable ...................................................... 1,108,148
Prepaid expenses ......................................................... 32,131
------------
TOTAL ASSETS ........................................................... 234,437,148
LIABILITIES:
Dividends payable (Note 2) ................................................. 216,351
Accrued expenses ........................................................... 167,238
Payable to OLDE Asset Management, Inc. ..................................... 91,167
------------
TOTAL LIABILITIES ...................................................... 474,756
------------
NET ASSETS applicable to 233,962,392 outstanding shares,
unlimited number of shares authorized, $0.01 par value ..................... $233,962,392
============
NET ASSET VALUE, offering and redemption price per share
on 233,962,392 shares of beneficial interest outstanding ................... $1.00
============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1996
<TABLE>
<S> <C>
INTEREST INCOME (Note 1): .................................................... $ 11,729,229
EXPENSES:
Management fees ............................................................ 629,877
Transfer agent fees ........................................................ 306,871
Custodian fees ............................................................. 23,231
Professional fees .......................................................... 18,333
Accounting fees ............................................................ 16,500
Printing and postage ....................................................... 9,864
Trustee fees ............................................................... 3,530
Insurance .................................................................. 8,429
Registration costs ......................................................... 138,139
12b-1 distribution costs ................................................... 314,939
------------
TOTAL EXPENSES ............................................................ 1,469,713
------------
NET INVESTMENT INCOME ........................................................ $ 10,259,516
============
</TABLE>
See accompanying notes.
9
<PAGE> 10
OLDE CUSTODIAN FUND
OLDE PREMIUM MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1996 1995
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 10,259,516 $ 6,603,487
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ........................................... (10,259,516) (6,603,487)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares ................................... 689,651,366 478,594,356
Net asset value of shares issued in reinvestment of dividends.... 9,649,262 6,192,096
------------- -------------
................................................................. 699,300,628 484,786,452
Cost of shares redeemed .......................................... (643,540,931) (394,529,497)
------------- -------------
Net increase in shareholders' equity from share transactions ...... 55,759,697 90,256,955
------------- -------------
NET INCREASE IN SHAREHOLDERS' EQUITY .............................. 55,759,697 90,256,955
SHAREHOLDERS' EQUITY:
At beginning of year ............................................ 178,202,695 87,945,740
------------- -------------
At end of year .................................................. $ 233,962,392 $ 178,202,695
============= =============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1996 1995 1994 1993 1992
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ......... $1.00 $1.00 $1.00 $1.00 $1.00
INVESTMENT OPERATIONS:
Net investment income ...................... 0.0490 0.0524 0.0339 0.0276 0.0410
DISTRIBUTIONS:
Dividends from net investment income ....... (0.0490) (0.0524) (0.0339) (0.0276) (0.0410)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ............... $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= =======
Total return (annualized) .................. +4.90% +5.24% +3.39% +2.76% +4.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)... $233,962 $178,203 $87,946 $103,317 $162,909
Ratio of expenses to average net assets..... 0.70% 0.70% 0.60% 0.70% 0.56%
Ratio of net investment income
to average net assets ...................... 4.90% 5.24% 3.39% 2.76% 4.10%
</TABLE>
See accompanying notes.
10
<PAGE> 11
OLDE CUSTODIAN FUND
OLDE PREMIUM PLUS MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 35.81%
$10,020,000 G.T.E. Corporation, 5.450%, due 11/01/96 ............................ $ 10,020,000
5,865,000 C.S. First Boston, 5.350%, due 11/01/96 ............................. 5,865,000
16,380,000 Salomon Incorporated, 5.420%, due 11/01/96 .......................... 16,380,000
8,815,000 Salomon Incorporated, 5.460%, due 11/04/96 .......................... 8,810,989
20,000,000 G.T.E. Corporation, 5.480%, due 11/04/96 ............................ 19,990,867
20,000,000 General Motors Acceptance Corporation, 5.330%, due 11/05/96 ......... 19,988,155
23,525,000 G.T.E. Corporation, 5.480%, due 11/06/96 ............................ 23,507,095
25,000,000 Heller Financial Incorporated, 5.410%, due 11/07/96 ................. 24,977,459
25,000,000 C.S. First Boston, 5.290%, due 11/08/96 ............................. 24,974,285
10,000,000 Household Finance Corporation, 5.250%, due 11/12/96 ................. 9,983,958
10,000,000 Heller Financial Incorporated, 5.410%, due 11/12/96 ................. 9,983,469
26,000,000 Whirlpool Financial Corporation, 5.370%, due 11/13/96 ............... 25,953,460
17,275,000 Salomon Incorporated, 5.460%, due 11/14/96........................... 17,240,940
18,445,000 American Express Credit Corporation, 5.260%, due 11/15/96 ........... 18,407,270
12,250,000 G.T.E. Corporation, 5.280%, due 11/15/96 ............................ 12,224,847
16,400,000 Household Finance Corporation, 5.250%, due 11/15/96 ................. 16,366,517
10,000,000 Countrywide Home Loans Inc., 5.270%, due 11/20/96 ................... 9,972,186
23,000,000 Sears Acceptance Corporation, 5.260%, due 11/20/96 ................. 22,936,150
23,365,000 Whirlpool Financial Corporation, 5.300%, due 11/21/96 ............... 23,296,203
8,145,000 Countrywide Home Loans Inc., 5.270%, due 11/21/96 ................... 8,121,153
30,000,000 Paine Webber Group, 5.300%, due 11/22/96 ........................... 29,907,250
32,575,000 Ford Motor Credit Company, 5.250%, due 11/25/96 ..................... 32,460,987
15,115,000 Paine Webber Group, 5.300%, due 11/26/96 ............................ 15,059,368
8,965,000 Household Finance Corporation, 5.250%, due 11/26/96 ................. 8,932,315
22,000,000 American General Finance, 5.250%, due 11/27/96 ...................... 21,916,583
22,705,000 G.E. Capital Corporation, 5.250%, due 11/29/96 ...................... 22,612,288
25,310,000 Heller Financial Incorporated, 5.330%, due 12/02/96 ................ 25,193,834
21,525,000 Heller Financial Incorporated, 5.340%, due 12/03/96 ................. 21,422,828
24,780,000 Salomon Incorporated, 5.350%, due 12/04/96 .......................... 24,658,475
30,000,000 C.S. First Boston, 5.260%, due 12/05/96 ............................ 29,850,967
23,240,000 Countrywide Home Loans Inc., 5.280%, due 12/06/96 ................... 23,120,701
11,160,000 General Motors Aceptance Corporation, 5.260%, due 12/09/96 .......... 11,098,037
20,000,000 Salomon Incorporated, 5.550%, due 12/24/96 .......................... 19,836,583
19,175,000 Paine Webber Group, 5.450%, due 01/02/97 ............................ 18,995,021
19,875,000 C.S. First Boston, 5.330%, due 01/07/97 ............................ 19,677,846
------------
653,743,086
YANKEE COMMERCIAL PAPER - 4.45%
11,973,000 B.H.P. Finance U.S.A., 5.450%, due 11/12/96 ......................... 11,953,062
12,500,000 BMW U.S Capital Corporation, 5.260%, due 11/14/96 ................... 12,476,257
23,000,000 American Honda Finance Corporation, 5.280%, due 11/18/96 ............ 22,942,653
22,100,000 Toshiba Capital Asia, 5.400%, due 11/19/96 .......................... 22,040,330
12,000,000 Electricity Corporation of New Zealand, 5.410%, due 02/04/97 ........ 11,828,683
------------
81,240,985
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT-TERM NOTES - 52.93%
$20,000,000 General Motors Acceptance Corporation, 5.725%, due 12/13/96 (a) ..... $ 20,003,910
5,000,000 Chrysler Financial Corporation, 8.125%, due 12/16/96 ................ 5,015,199
37,000,000 First Bank National Association, 5.325%, due 12/18/96 (a) ........... 36,999,537
13,500,000 Keycorp, 8.200%, due 12/30/96 ....................................... 13,559,605
38,000,000 Sears Acceptance Corporation, 5.600%, due 01/06/97 .................. 38,013,772
10,000,000 General Motors Acceptance Corporation, 7.550%, due 01/14/97 ......... 10,033,962
10,000,000 Traveler's Incorporated, 7.625%, due 01/15/97 ....................... 10,044,094
36,000,000 Merrill Lynch & Company, 5.511%, due 01/24/97 (a) ................... 35,999,192
5,000,000 Norwest Financial, 7.875%, due 01/30/97 ............................. 5,034,521
12,000,000 American Express Centurion Bank, 5.353%, due 02/12/97 (a) ........... 11,999,985
35,000,000 Key Bank of Maine, 5.304%, due 02/14/97 (a) ......................... 34,990,132
35,000,000 Abbey National Bank, 5.279%, due 02/21/97 (a) ....................... 34,993,771
42,000,000 Bayerische Landesbank New York, 5.288%, due 03/03/97 (a) ............ 41,986,317
25,000,000 American Honda Finance Corporation, 5.637%, due 03/06/97 (a) ........ 24,999,089
20,000,000 American Express Centurion Bank, 5.357%, due 03/14/97 (a) ........... 20,000,000
35,000,000 PNC Bank, National Association, 5.295%, due 04/01/97 (a) ............ 34,987,980
9,600,000 Associates Corporation, NA, 9.700%, due 05/01/97 .................... 9,777,317
30,000,000 American Honda Finance Corporation, 5.422%, due 05/05/97 (a) ........ 29,992,439
25,000,000 Ford Motor Credit Company, 5.530%, due 05/12/97 (a) ................. 25,003,586
25,000,000 Paccar Financial Corporation, 5.262%, due 05/14/97 (a) .............. 24,988,352
37,000,000 FCC National Bank, 6.040%, due 06/19/97 ............................. 36,986,640
19,000,000 John Deere Capital Corporation, 5.950%, due 06/30/97 ................ 18,985,777
43,000,000 G.E. Capital Corporation, 5.469%, due 07/08/97 (a) .................. 43,000,000
53,000,000 Morgan Stanley Group, 5.511%, due 07/10/97 (a) ...................... 53,000,000
22,000,000 American Express Centurion Bank, 5.353%, due 07/11/97 (a) ........... 22,000,000
25,000,000 Abbey National Bank, 5.290%, due 07/15/97 (a) ....................... 24,989,108
35,000,000 Dean Witter, Discover & Company, 5.325%, due 08/08/97 (a) ........... 34,990,804
43,000,000 IBM Credit Corporation, 5.740%, due 08/14/97 ........................ 42,977,291
25,000,000 Ford Motor Credit Company, 5.633%, due 09/02/97 (a) ................. 25,018,144
35,000,000 Paccar Financial Corporation, 5.254%, due 09/22/97 (a) .............. 34,973,952
19,000,000 Australia & New Zealand Bank, 5.900%, due 09/23/97 .................. 19,027,357
39,000,000 PNC Bank, National Association, 5.338%, due 10/01/97 (a) ............ 38,971,868
24,945,000 Province of Ontario, 5.700%, due 10/01/97 ........................... 24,873,969
44,000,000 Merrill Lynch & Company, 5.420%, due 10/03/97 (a) ................... 44,000,000
17,000,000 American Express Centurion Bank, 5.345%, due 10/10/97 (a) ........... 17,000,000
17,000,000 Republic Mase Australia, 5.650%, due 10/31/97 ....................... 16,983,758
------------
966,201,428
</TABLE>
12
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
U.S. GOVERNMENT SECURITIES - 3.24%
$28,000,000 U.S. Treasury Note, 6.875%, due 03/31/97 ............................ $ 28,156,819
31,000,000 U.S. Treasury Note, 6.125%, due 06/02/97 ............................ 31,049,813
--------------
59,206,632
U.S. GOVERNMENT AGENCY SECURITIES - 3.17%
10,000,000 Tennessee Valley Authority, 4.600%, due 12/16/96 .................... 9,989,392
13,000,000 Federal Farm Credit Bank, 5.400%, due 04/01/97 ...................... 12,991,740
35,000,000 Student Loan Marketing Association, 5.620%, due 06/30/97 ............ 34,906,613
--------------
57,887,745
--------------
TOTAL INVESTMENTS - 99.6% ....................... 1,818,279,876
OTHER ASSETS LESS LIABILITIES - 0.4% ............ 7,200,220
--------------
NET ASSETS - 100.0% ............................. $1,825,480,096
==============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
October 31, 1996.
See accompanying notes.
13
<PAGE> 14
OLDE CUSTODIAN FUND
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1) ............................. $1,818,279,876
Cash ............................................................... 1,262
Interest receivable ................................................ 9,107,453
Deferred organizational costs ...................................... 2,010
Prepaid expenses ................................................... 73,150
--------------
TOTAL ASSETS .................................................... 1,827,463,751
LIABILITIES:
Dividends payable (Note 2) ......................................... 1,926,560
Accrued expenses ................................................... 47,632
Payable to OLDE Asset Management, Inc. ............................. 9,463
--------------
TOTAL LIABILITIES ............................................... 1,983,655
--------------
NET ASSETS applicable to 1,825,480,096 outstanding shares,
unlimited number of shares authorized, $0.01 par value ............. $1,825,480,096
==============
NET ASSET VALUE, offering and redemption price per share
on 1,825,480,096 shares of beneficial interest outstanding ......... $1.00
==============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1996
<TABLE>
<S> <C>
INTEREST INCOME (Note 1) .............................................. $ 83,074,708
EXPENSES:
Management fees ..................................................... 2,232,385
Transfer agent fees ................................................. 408,101
Custodian fees ...................................................... 87,994
Professional fees ................................................... 20,067
Accounting fees ..................................................... 16,500
Printing and postage ................................................ 12,824
Trustee fees ........................................................ 22,389
Insurance ........................................................... 15,077
Amortization of organizational costs ................................ 11,679
Registration costs .................................................. 354,417
12b-1 distribution costs ............................................ 2,232,385
---------------
5,413,818
Expenses waived and reimbursed ........................................ (5,413,818)
---------------
NET EXPENSES ........................................................ -
---------------
NET INVESTMENT INCOME ................................................. $ 83,074,708
===============
</TABLE>
See accompanying notes.
14
<PAGE> 15
OLDE CUSTODIAN FUND
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1996 1995
------------------ ------------------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................ $ 83,074,708 $ 49,268,871
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ............................................ (83,074,708) (49,268,871)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares .................................... 3,243,478,670 2,458,463,640
Net asset value of shares issued in reinvestment of dividends..... 79,753,027 47,030,038
------------------ ------------------
3,323,231,697 2,505,493,678
Cost of shares redeemed .......................................... (2,669,874,893) (1,725,674,740)
------------------ ------------------
Net increase in shareholders' equity from share transactions...... 653,356,804 779,818,938
------------------ ------------------
NET INCREASE IN SHAREHOLDERS' EQUITY ............................... 653,356,804 779,818,938
SHAREHOLDERS' EQUITY:
At beginning of year ............................................. 1,172,123,292 392,304,354
------------------ ------------------
At end of year ................................................... $ 1,825,480,096 $ 1,172,123,292
================== ==================
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31 FOR THE PERIOD
JAN. 3, 1992 TO
1996 1995 1994 1993 OCT. 31, 1992
------- ------- ------- ------- ---------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD .......... $1.00 $1.00 $1.00 $1.00 $1.00
INVESTMENT OPERATIONS:
Net investment income ....................... 0.0560 0.0598 0.0401 0.0342 0.0340
DISTRIBUTIONS:
Dividends from net investment income ........ (0.0560) (0.0598) (0.0401) (0.0342) (0.0340)
------- ------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................ $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= ========
Total return (annualized) ................... +5.60% +5.98% +4.01% +3.42% +4.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted).... $1,825,480 $1,172,123 $392,304 $170,630 $94,734
Ratio of expenses to average net assets ..... - - - - -
Ratio of net investment income
to average net assets ....................... 5.60% 5.98% 4.01% 3.42% 4.10%
</TABLE>
See accompanying notes.
15
<PAGE> 16
OLDE CUSTODIAN FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
OLDE Custodian Fund (the Fund) is a business trust established under the laws
of Massachusetts and is registered under the Investment Company Act of 1940 as
a diversified, open-end management company. Three series of the Fund are
currently offered for sale: OLDE Money Market Series, OLDE Premium Money Market
Series and OLDE Premium Plus Money Market Series.
NATURE OF OPERATIONS
The investment objective of each series is maximum current income, consistent
with preservation of capital and liquidity.
SECURITY VALUATION
The Fund utilizes the amortized cost method to determine the carrying value of
its investment securities. Under this method, investment securities are valued
for both financial reporting and Federal tax purposes at cost and any discount
or premium is amortized from the date of acquisition to maturity. The use of
this method results in a carrying value which approximates the market value.
Since the Fund's portfolio investments are valued at amortized cost, there will
normally not be any unrealized gains or losses on such investments. However,
should the carrying value of the Fund's investments deviate significantly from
market value, the Board of Trustees could decide to value the investments at
market value.
Investment securities purchases and sales are accounted for on a trade-date
basis.
INTEREST INCOME
Interest income is recorded daily on the accrual basis, adjusted for
amortization of premium and accretion of discount
DEFERRED ORGANIZATIONAL COSTS
Organizational costs of OLDE Premium Plus Money Market Series are being
amortized over a 60-month period from the commencement of operations.
EXPENSES
Expenses of each series are accrued daily.
USE OF ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results could
differ from those estimates.
2. DIVIDENDS TO SHAREHOLDERS
On each day the New York Stock Exchange is open for business, the Fund declares
dividends of its daily net investment income to shareholders of record prior to
the declaration.
Each series calculates its dividends based on its daily net investment income.
For this purpose, the net investment income of a series consists of (1) accrued
interest income adjusted for amortized discount or premium, (2) any short-term
realized gains or losses on investments, and (3) a deduction for accrued
expenses allocated to that series.
3. FEDERAL INCOME TAXES
The Internal Revenue Code of 1986, as amended, treats each series of the Fund
as a separate regulated investment company. It is the Fund's policy to comply
with the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its income to shareholders.
Therefore, no Federal income tax provision is required in the accompanying
financial statements.
16
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. TRANSACTIONS WITH AFFILIATES
The Fund has an Investment Advisory Agreement with OLDE Asset Management, Inc.
(the Adviser). Under the current agreement, the Adviser receives a monthly
management fee equal to an annual rate of the average daily net asset value of
each series in accordance with the following schedule:
<TABLE>
<S> <C>
OLDE Money Market Series 0.50%
OLDE Premium Money Market Series 0.30%
OLDE Premium Plus Money Market Series 0.15%
</TABLE>
The Advisory Agreement also provides for the Adviser to reimburse a series for
the aggregate expenses of a series (excluding taxes, brokerage fees, and, to
the extent permitted by state securities laws, extraordinary expenses) which
exceed 2% of its first $10 million in assets, 1 1/2% of the next $20 million
and 1% of assets in excess of $30 million.
The Fund has an Accounting Services Agreement with the Adviser. Under the
current agreement, the Adviser receives a fixed fee of $1,375 per month for
each series.
The Fund has a Shareholder Services Agreement with OLDE Discount Corporation
(OLDE Discount). Under the current agreement, OLDE Discount receives a fixed
fee of $24 per account. OLDE Discount has agreed to waive this fee for OLDE
Premium Plus Money Market Series until January 1, 1997.
The Fund has an Underwriting Agreement with OLDE Discount. As underwriter for
the Fund, OLDE Discount received no commissions for the year ended October 31,
1996. For the year ended October 31, 1996, the Fund made no direct payments to
its officers and affiliated trustees and incurred trustee fees of $32,979 to
unaffiliated trustees.
The Adviser has voluntarily agreed to waive its management fee, accounting fee,
and reimburse all other expenses of OLDE Premium Plus Money Market Series until
January 1, 1997. Effective January 1, 1997 through January 1, 1998, the Adviser
has voluntarily agreed to waive its management fee and accounting fee, and
limit all other expenses of this Series to no more than .25% of average net
assets. The Adviser may, in its discretion, reimburse additional expenses of
the Series. For the year ended October 31, 1996, the Series incurred total
expenses of $5,413,818. The Adviser waived fees of $2,248,885. OLDE Discount
waived transfer agency fees of $408,101 and 12b-1 expenses of $2,232,385 and
the balance was reimbursed by the Adviser, as agreed.
5. DISTRIBUTION ASSISTANCE
Under a Plan and Agreement of Distribution pursuant to Rule 12b-1 of
the Investment Company Act of 1940, OLDE Discount is entitled to reimbursement
of certain expenses of distribution in an amount not to exceed an annual rate
of the average daily net asset value of each series in accordance with the
following schedule:
<TABLE>
<S> <C>
OLDE Money Market Series 0.25%
OLDE Premium Money Market Series 0.15%
OLDE Premium Plus Money Market Series 0.15%
</TABLE>
For the period ended October 31, 1996, the annualized percentage rate of 12b-1
expense was .06% for OLDE Money Market Series, .15% for OLDE Premium Money
Market Series and .15% for OLDE Premium Plus Money Market Series.
6. INVESTMENT SECURITIES TRANSACTIONS
Investment securities transactions for the period ended October 31, 1996 are
as follows:
OLDE Money Market Series:
Purchases: $1,834,095,188
Sales (including maturities): $1,783,165,638
OLDE Premium Money Market Series:
Purchases: $1,271,242,059
Sales (including maturities): $1,221,383,884
OLDE Premium Plus Money Market Series:
Purchases: $7,973,652,988
Sales (including maturities): $7,361,931,657
Broker commissions paid on purchases made by the Fund are infrequent and
immaterial.
7. BANK LINE OF CREDIT
At October 31, 1996 a secured line of credit in the amount of $5,000,000 was
available to the Fund. This line of credit is cancelable by the bank.
Advances under the line bear interest at the federal funds rate plus 1/2%.
There have been no borrowings under this line as of October 31, 1996.
17
<PAGE> 18
[ERNST & YOUNG LLP LETTERHEAD] REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees of OLDE Custodian Fund:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of OLDE Custodian Fund, comprised of
OLDE Money Market Series, OLDE Premium Money Market Series and OLDE Premium
Plus Money Market Series, as of October 31, 1996, and the related statements of
operations, the statements of changes in net assets and the financial
highlights for each of the periods presented. These financial statements and
financial highlights are the responsibility of the Fund's 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. Our procedures included confirmation of securities owned at October
31, 1996, 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
each of the Series comprising OLDE Custodian Fund as of October 31, 1996, and
the results of their operations and the changes in their net assets and the
financial highlights for the periods referred to above in conformity with
generally accepted accounting principles.
Detroit, Michigan
November 27, 1996
18
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