<PAGE> 1
INVESTMENT ADVISOR OLDE
OLDE ASSET MANAGEMENT, INC. CUSTODIAN FUND
SEMI - ANNUAL REPORT
PRINCIPAL UNDERWRITER APRIL 30, 1997
OLDE DISCOUNT CORPORATION
CUSTODIAN
THE BANK OF NEW YORK
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
TRANSFER AGENT
OLDE DISCOUNT CORPORATION
[DRAWING]
(UNAUDITED)
For information regarding your OLDE MONEY
account, telephone your local MARKET SERIES
OLDE Discount branch office
or OLDE PREMIUM
OLDE Discount Customer Service MONEY MARKET SERIES
at: 1-800-235-3100
OLDE PREMIUM PLUS
This report is authorized for MONEY MARKET SERIES
use by nonshareholders only when
accompanied or preceded by a
current prospectus of
OLDE Custodian Fund.
<PAGE> 2
[OLDE CUSTODIAN FUND LETTERHEAD]
May 29, 1997
Dear Shareholder,
We are pleased to present the Semi-Annual Report for the six months ended April
30, 1997 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 unaudited schedules of investments and financial
statements for each of the three series.
The U.S. economy has shown surprising strength in the past six months. Most
recently, gross domestic product (GDP) grew at an annual rate of 5.6% in the
first quarter of 1997. Accompanying this growth was a tightening in the labor
market and investors' fear of impending increases in inflation. Fortunately for
investors, inflation has remained moderate with consumer prices rising at an
annual rate of just 2.5% through April of this year.
Given the current economic environment, the Federal Reserve has been relatively
quiescent. While the Fed did initiate an interest rate hike on March 25,
increasing the fed funds rate to 5.50% from 5.25%, the Fed has not taken
similar action since. Fearing additional interest rate increases, investors
pushed up yields on one year T-bills to 6.07%, the highest yield since the
spring of 1995.
The Adviser availed itself of the increase in rates by selectively purchasing
longer term money market instruments. Further, the Adviser continued to
purchase variable rate securities as opportunities arose. Be assured that the
Adviser will continue to give primary attention to investment quality and
liquidity while seeking money market securities with attractive yields.
Sincerely,
OLDE CUSTODIAN FUND
Lisa S. Fildes
President
2
<PAGE> 3
OLDE CUSTODIAN FUND
OLDE Money Market Series
Schedule of Investments
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 24.93%
$ 2,425,000 Textron, Incorporated, 5.350%, due 05/01/97........................... $ 2,425,000
1,220,000 PHH Corporation, 5.510%, due 05/01/97................................. 1,220,000
6,000,000 Countrywide Home Loans, 5.570%, due 05/02/97.......................... 5,999,072
3,585,000 Ford Motor Credit Company of Puerto Rico, 5.560%, due 05/06/97........ 3,582,232
6,615,000 Chrysler Financial Corporation, 5.550%, due 05/07/97.................. 6,608,881
5,890,000 Aetna Services Incorporated, 5.560%, due 05/08/97..................... 5,883,632
5,595,000 Heller Financial Incorporated, 5.540%, due 05/09/97................... 5,588,112
8,185,000 Heller Financial Incorporated, 5.540%, due 05/13/97................... 8,169,885
5,770,000 Prudential Funding, 5.520%, due 05/15/97.............................. 5,757,614
5,295,000 Household Finance Corporation, 5.510%, due 05/16/97................... 5,282,844
5,000,000 Ford Motor Credit Company of Puerto Rico, 5.510%, due 05/19/97........ 4,986,225
3,535,000 General Motors Acceptance Corporation, 5.520%, due 05/21/97........... 3,524,159
5,025,000 American General Finance, 5.510%, due 05/22/97........................ 5,008,849
4,200,000 G.E. Credit Capital Services of Puerto Rico, 5.510%, due 05/23/97..... 4,185,857
4,610,000 Aetna Services Incorporated, 5.550%, due 05/29/97..................... 4,590,100
5,000,000 Heller Financial Incorporated, 5.620%, due 05/30/97................... 4,977,364
5,130,000 Credit Suisse First Boston, 5.580%, due 06/03/97...................... 5,103,760
3,745,000 Budget Funding Corporation, 5.590%, due 06/04/97...................... 3,725,228
4,000,000 American General Finance, 5.560%, due 06/05/97........................ 3,978,378
4,355,000 American General Finance, 5.560%, due 06/06/97........................ 4,330,786
--------------
94,927,978
YANKEE COMMERCIAL PAPER - 9.91%
5,000,000 Daimler-Benz NA Corporation, 5.530%, due 05/06/97..................... 4,996,160
7,330,000 B.A.T. Capital Corporation, 5.500%, due 05/20/97...................... 7,308,723
6,000,000 Ford Credit Europe PLC, 5.530%, due 05/27/97.......................... 5,976,037
3,940,000 Ford Credit Europe PLC, 5.500%, due 05/28/97.......................... 3,923,748
5,710,000 American Honda Finance Corporation, 5.600%, due 06/09/97.............. 5,675,359
5,440,000 American Honda Finance Corporation, 5.630%, due 06/13/97.............. 5,403,417
4,500,000 Tasmanian Public Finance Corporation, 5.600%, due 06/17/97............ 4,467,100
--------------
37,750,544
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT-TERM NOTES - 57.73%
$ 3,300,000 Associates Corporation, NA, 9.700%, due 05/01/97 ........................ $ 3,300,000
8,000,000 American Honda Finance Corporation, 5.688%, due 05/05/97 (a)............. 7,999,957
6,000,000 Ford Motor Credit Company, 5.710%, due 05/12/97 (a)...................... 6,000,050
8,000,000 Paccar Financial Corporation, 5.563%, due 05/14/97 (a)................... 7,999,750
8,000,000 FCC National Bank, 6.040%, due 06/19/97.................................. 7,999,385
5,000,000 IBM Corporation, 5.500%, due 06/20/97 (a)................................ 4,999,491
7,500,000 Chrysler Financial Corporation, 5.805%, due 06/23/97 (a)................. 7,502,475
2,000,000 John Deere Capital Corporation, 5.950%, due 06/30/97..................... 1,999,627
4,000,000 G.E. Capital Corporation, 5.750%, due 07/08/97 (a)....................... 4,000,000
12,000,000 Morgan Stanley Group, 5.796%, due 07/10/97 (a)........................... 12,000,000
5,000,000 American Express Centurion Bank, 5.658%, due 07/11/97 (a)................ 5,000,000
3,000,000 Abbey National Bank, 5.550%, due 07/15/97 (a)............................ 2,999,617
10,000,000 Dean Witter, Discover & Company, 5.638%, due 08/08/97 (a)................ 9,999,070
3,000,000 IBM Credit Corporation, 5.740%, due 08/14/97............................. 2,999,418
7,000,000 Paccar Financial Corporation, 5.563%, due 09/22/97 (a)................... 6,997,692
4,000,000 Australia & New Zealand Bank, 5.900%, due 09/23/97....................... 4,002,561
5,000,000 PNC Bank, National Association, 5.588%, due 10/01/97 (a)................. 4,998,348
7,000,000 Province of Ontario, 5.700%, due 10/01/97................................ 6,990,869
6,000,000 Merrill Lynch & Company, 5.658%, due 10/03/97 (a)........................ 6,000,000
5,000,000 American Express Centurion Bank, 5.658%, due 10/10/97 (a)................ 5,000,000
5,000,000 Republic Mase Australia, 5.650%, due 10/31/97............................ 4,997,598
8,000,000 Bank One, Dayton, N.A., 5.560%, due 11/03/97 (a)......................... 7,997,589
6,000,000 Toyota Motor Credit Corporation, 7.750%, due 12/19/97.................... 6,063,160
13,000,000 PNC Bank, National Association, 5.598%, due 01/09/98 (a)................. 12,993,820
8,000,000 PHH Corporation, 5.658%, due 01/27/98 (a)................................ 7,998,828
9,000,000 IBM Corporation, 5.670%, due 01/28/98.................................... 8,968,766
3,000,000 Paccar Financial Corporation, 5.880%, due 02/17/98....................... 2,994,160
4,000,000 Merrill Lynch & Company, 5.700%, due 02/18/98............................ 3,999,840
4,000,000 IBM Credit Corporation, 5.650%, due 02/27/98............................. 3,998,080
15,000,000 Associates Corporation, NA, 5.580%, due 03/02/98 (a)..................... 14,990,361
11,000,000 Bank of America Illinois 5.850%, due 03/13/98............................ 10,990,446
8,000,000 American Express Centurion Bank, 5.658%, due 03/20/98 (a)................ 8,000,000
7,000,000 Abbey National Bank, 6.100%, due 04/02/98................................ 6,992,011
------------
219,772,969
U.S. GOVERNMENT SECURITIES - 2.37%
5,000,000 U.S. Treasury Note, 6.125%, due 06/02/97................................. 5,001,192
4,000,000 U.S. Treasury Note, 7.250%, due 02/17/98................................. 4,044,024
------------
9,045,216
U.S. GOVERNMENT AGENCY SECURITIES - 4.46%
9,000,000 Student Loan Marketing Association, 5.620%, due 06/30/97................ 8,994,021
8,000,000 Federal Farm Credit Bank, 5.470%, due 02/03/98 (a)...................... 7,997,670
------------
16,991,691
------------
TOTAL INVESTMENTS - 99.4%.. 378,488,398
OTHER ASSETS LESS LIABILITIES - 0.6% 2,181,882
------------
NET ASSETS - 100.0%........ $380,670,280
============
(a) - Variable rate securities. The rates shown are the current rates as of April 30, 1997.
</TABLE>
See accompanying notes.
4
<PAGE> 5
OLDE CUSTODIAN FUND
OLDE MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1)......... $378,488,398
Cash........................................... 701
Interest receivable............................ 2,630,536
Prepaid expenses............................... 74,224
------------
TOTAL ASSETS............................ 381,193,859
LIABILITIES:
Dividends payable (Note 2)..................... 296,872
Accrued expenses............................... 131,949
Payable to OLDE Asset Management, Inc.......... 94,758
------------
TOTAL LIABILITIES........................ 523,579
------------
NET ASSETS applicable to 380,670,280 outstanding shares,
unlimited number of shares authorized, $0.01 par value $380,670,280
============
NET ASSET VALUE, offering and redemption price per share
on 380,670,280 shares of beneficial interest
outstanding......................................... $ 1.00
============
OLDE Money Market Series
Statement of Operations
Six Months Ended April 30, 1997
(Unaudited)
INTEREST INCOME (Note 1): ............................ $ 10,911,927
EXPENSES:
Management fees................................ 978,960
Transfer agent fees............................ 665,326
Custodian fees................................. 16,902
Professional fees.............................. 8,971
Accounting fees................................ 8,250
Printing and postage........................... 27,150
Trustee fees................................... 3,620
Insurance...................................... 4,980
Registration costs............................. 55,624
12b-1 distribution costs....................... 125,560
------------
TOTAL EXPENSES ........................... 1,895,343
------------
NET INVESTMENT INCOME................................. $ 9,016,584
============
</TABLE>
See accompanying notes.
5
<PAGE> 6
OLDE CUSTODIAN FUND
OLDE Money Market Series
Statements of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
----------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment income...................................................... $ 9,016,584 $ 15,486,549
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income...................................................... (9,016,584) (15,486,549)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares.............................................. 813,688,119 1,465,487,864
Net asset value of shares issued in reinvestment of dividends.............. 8,541,069 14,559,552
------------- ---------------
822,229,188 1,480,047,416
Cost of shares redeemed.................................................... (814,705,790) (1,420,132,540)
------------- ---------------
Net increase in shareholders' equity from share
transactions............................................................. 7,523,398 59,914,876
------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................................... 7,523,398 59,914,876
SHAREHOLDERS' EQUITY:
At beginning of period.................................................... 373,146,882 313,232,006
============= ===============
At end of period........................................................... $ 380,670,280 $ 373,146,882
============= ===============
</TABLE>
OLDE MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, 1997 OCT. 31, 1996 OCT. 31, 1995 OCT. 31, 1994 OCT. 31, 1993
--------------- ------------- ------------- --------------- -------------
<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........................ 0.0228 0.0460 0.0487 0.0293 0.0230
DISTRIBUTIONS:
Dividends from net investment income......... (0.0228) (0.0460) (0.0487) (0.0293) (0.0230)
----------- ----------- ----------- ----------- ------------
NET ASSET VALUE, END OF PERIOD................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ============
TOTAL RETURN(ANNUALIZED)..................... 4.61% 4.60% 4.87% 2.93% 2.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted).... $ 380,670 $ 373,147 $ 313,232 $ 209,288 $ 206,775
Ratio of expenses to average net assets...... 0.97% 1.00% 1.07% 1.05% 1.10%
Ratio of net investment income
to average net assets........................ 4.61% 4.60% 4.87% 2.93% 2.30%
</TABLE>
See accompanying notes.
6
<PAGE> 7
OLDE CUSTODIAN FUND
OLDE PREMIUM MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 21.77%
$4,745,000 Countrywide Home Loans, 5.570%, due 05/02/97.................................. $ 4,744,256
1,185,000 PHH Corporation, 5.510%, due 05/05/97......................................... 1,184,274
4,210,000 Heller Financial Incorporated, 5.520%, due 05/07/97........................... 4,206,127
3,940,000 Heller Financial Incorporated, 5.540%, due 05/09/97........................... 3,935,149
4,820,000 Sears Acceptance Corporation, 5.540%, due 05/13/97............................ 4,811,099
5,150,000 Sears Acceptance Corporation, 5.520%, due 05/15/97............................ 5,138,945
4,100,000 Heller Financial Incorporated, 5.600%, due 05/16/97........................... 4,090,433
4,000,000 Ford Motor Credit Company of Puerto Rico, 5.510%, due 05/19/97................ 3,988,980
2,040,000 General Motors Acceptance Corporation, 5.520%, due 05/21/97................... 2,033,744
3,975,000 G.E. Credit Capital Services of Puerto Rico, 5.510%, due 05/22/97............. 3,962,224
6,225,000 American Gerneral Finance, 5.510%, due 05/23/97............................... 6,204,039
4,180,000 Chrysler Financial Corporation, 5.520%, due 05/28/97.......................... 4,162,695
3,345,000 Aetna Services Incorporated, 5.550%, due 05/29/97............................. 3,330,561
3,870,000 Budget Funding Corporation, 5.570%, due 06/03/97.............................. 3,850,240
-----------
55,642,776
YANKEE COMMERCIAL PAPER - 10.83%
5,000,000 Hitachi Credit America, 5.360%, due 05/01/97.................................. 5,000,000
6,470,000 Daimler-Benz NA Corporation, 5.530%, due 05/06/97............................. 6,465,031
5,440,000 B.A.T. Capital Corporation, 5.500%, due 05/20/97.............................. 5,424,209
5,000,000 Ford Credit Europe PLC, 5.530%, due 05/27/97.................................. 4,980,030
4,365,000 American Honda Finance Corporation, 5.600%, due 06/09/07...................... 4,338,519
1,495,000 American Honda Finance Corporation, 5.630%, due 06/20/97...................... 1,483,310
-----------
27,691,099
BANK OBLIGATIONS - 7.82%
7,000,000 Royal Bank of Canada-NY, 5.560%, due 11/14/97 (a)............................. 6,995,836
4,000,000 Bankers Trust Company, 5.660%, due 12/10/97 (a)............................... 3,998,248
5,000,000 Societe Generale-NY, 5.850%, due 03/03/98..................................... 4,998,280
4,000,000 Canadian Imperial Bank of Commerce, 5.940%, due 03/17/98...................... 3,999,665
-----------
19,992,029
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT-TERM NOTES - 52.03%
$ 2,000,000 American Honda Finance Corporation, 5.688%, due 05/05/97 (a)............ $ 1,999,988
5,000,000 Credit Suisse First Boston, 5.920%, due 05/08/97 (a).................... 5,000,034
4,000,000 Ford Motor Credit Company, 5.710%, due 05/12/97 (a)..................... 4,000,033
7,000,000 Paccar Financial Corporation, 5.563%, due 05/14/97 (a).................. 6,999,781
5,000,000 FCC National Bank, 6.040%, due 06/19/97................................. 4,999,616
2,000,000 IBM Corporation, 5.500%, due 06/20/97 (a)............................... 1,999,797
8,000,000 Chrysler Financial Corporation, 5.805%, due 06/23/97 (a)................ 8,002,640
4,000,000 John Deere Capital Corporation, 5.950%, due 06/30/97.................... 3,999,255
3,000,000 G.E. Capital Corporation, 5.750%, due 07/08/97 (a)...................... 3,000,000
10,000,000 Morgan Stanley Group, 5.796%, due 07/10/97 (a).......................... 10,000,000
3,000,000 American Express Centurion Bank, 5.658%, due 07/11/97 (a)............... 3,000,000
2,000,000 Abbey National Bank, 5.550%, due 07/15/97 (a)........................... 1,999,744
5,000,000 Dean Witter, Discover & Company, 5.638%, due 08/08/97 (a)............... 4,999,535
4,000,000 IBM Credit Corporation, 5.740%, due 08/14/97............................ 3,999,225
4,000,000 Ford Motor Credit Company, 5.461%, due 09/02/97 (a)..................... 4,001,180
3,000,000 Paccar Financial Corporation, 5.563%, due 09/22/97 (a).................. 2,999,011
2,000,000 Australia & New Zealand Bank, 5.900%, due 09/23/97...................... 2,001,281
6,000,000 PNC Bank, National Association, 5.588%, due 10/01/97 (a)................ 5,998,018
3,000,000 Province of Ontario, 5.700%, due 10/01/97............................... 2,996,087
3,000,000 American Express Centurion Bank, 5.658%, due 10/10/97 (a)............... 3,000,000
3,000,000 Republic Mase Australia, 5.650%, due 10/31/97........................... 2,998,558
5,000,000 Bank One Dayton, 5.560%, due 11/03/97 (a)............................... 4,998,493
3,000,000 PNC Bank, National Association, 5.598%, due 01/09/98 (a)................ 2,998,574
5,000,000 PHH Corporation, 5.658%, due 01/27/98 (a)............................... 4,999,267
4,000,000 IBM Corporation, 5.670%, due 01/28/98................................... 3,986,118
2,000,000 Paccar Financial Corporation, 5.880%, due 02/17/98...................... 1,996,107
2,000,000 Merrill Lynch & Company, 5.700%, due 02/18/98........................... 1,999,920
2,000,000 IBM Credit Corporation, 5.650%, due 02/27/98............................ 1,999,040
8,000,000 Associates Corporation, NA, 5.580%, due 03/02/98 (a).................... 7,994,867
4,000,000 Credit Suisse First Boston, 5.915%, due 03/13/98........................ 4,000,000
5,000,000 American Express Centurion Bank, 5.658%, due 03/20/98 (a)............... 5,000,000
5,000,000 Abbey National Bank, 6.100%, due 04/02/98............................... 4,994,294
------------
132,960,463
U.S. GOVERNMENT SECURITIES - 2.75%
4,000,000 U.S. Treasury Note, 6.125%, due 06/02/97................................ 4,000,964
3,000,000 U.S. Treasury Note, 7.250%, due 02/17/98................................ 3,033,018
------------
7,033,982
U.S. GOVERNMENT AGENCY SECURITIES - 4.30%
6,000,000 Student Loan Marketing Association, 5.620%, due 06/30/97................ 5,996,015
5,000,000 Federal Farm Credit Bank, 5.470%, due 02/03/98 (a)...................... 4,998,544
------------
10,994,559
------------
TOTAL INVESTMENTS - 99.5%................. 254,314,908
OTHER ASSETS LESS LIABILITIES - 0.5%...... 1,238,015
------------
NET ASSETS - 100.0%....................... $255,552,923
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
April 30, 1997.
See accompanying notes.
8
<PAGE> 9
OLDE CUSTODIAN FUND
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at amortized cost (Note 1)........................... $254,314,908
Interest receivable.............................................. 1,656,003
Prepaid expenses................................................. 54,831
------------
TOTAL ASSETS.............................................. 256,025,742
LIABILITIES:
Dividends payable (Note 2)....................................... 218,056
Accrued expenses................................................. 159,348
Payable to OLDE Asset Management, Inc............................ 95,415
------------
TOTAL LIABILITIES.......................................... 472,819
------------
NET ASSETS applicable to 255,552,923 outstanding shares,
unlimited number of shares authorized, $0.01 par value................ $255,552,923
============
NET ASSET VALUE, offering and redemption price per share
on 255,552,923 shares of beneficial interest outstanding.............. $ 1.00
============
</TABLE>
OLDE Premium Money Market Series
Statement of Operations
Six Months Ended April 30, 1997
(Unaudited)
<TABLE>
<S> <C>
INTEREST INCOME (Note 1): ............................ $ 6,927,850
EXPENSES:
Management fees................................ 372,326
Transfer agent fees............................ 178,371
Custodian fees................................. 9,635
Professional fees.............................. 8,971
Accounting fees................................ 8,250
Printing and postage........................... 5,430
Trustee fees................................... 1,810
Insurance...................................... 4,659
Registration costs............................. 42,270
12b-1 distribution costs....................... 159,925
------------
TOTAL EXPENSES ........................... 791,647
------------
NET INVESTMENT INCOME................................. $ 6,136,203
============
</TABLE>
See accompanying notes.
9
<PAGE> 10
OLDE CUSTODIAN FUND
OLDE PREMIUM MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1997 October 31, 1996
OPERATIONS: ---------------- ----------------
<S> <C> <C>
Net investment income........................................$ 6,136,203 $ 10,259,516
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income........................................ (6,136,203) (10,259,516)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares................................ 394,724,448 689,651,366
Net asset value of shares issued in reinvestment of dividend 5,821,248 9,649,262
--------------- ---------------
400,545,696 699,300,628
Cost of shares redeemed...................................... (378,955,165) (643,540,931)
--------------- ---------------
Net increase in shareholders' equity from share transactions 21,590,531 55,759,697
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY............................. 21,590,531 55,759,697
SHAREHOLDERS' EQUITY:
At beginning of period...................................... 233,962,392 178,202,695
--------------- ---------------
At end of period.............................................$ 255,552,923 $ 233,962,392
=============== ===============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended Year Ended Year Ended Year Ended
April 30, 1997 Oct. 31, 1996 Oct. 31, 1995 Oct. 31, 1994 Oct. 31, 1993
---------------- --------------- ------------- ------------- -------------
<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................ 0.0245 0.0490 0.0524 0.0293 0.0230
Distributions:
Dividends from net investment income. (0.0245) (0.0490) (0.0524) (0.0293) (0.0230)
---------- ---------- ---------- --------- -----------
NET ASSET VALUE, END OF PERIOD........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ========== ========== ===========
TOTAL RETURN(ANNUALIZED)............. 4.94% 4.90% 5.24% 3.39% 2.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted)....................... $ 255,553 $ 233,962 $ 178,203 $ 87,946 $ 103,317
Ratio of expenses to average net asset 0.64% 0.70% 0.70% 0.60% 0.70%
Ratio of net investment income
to average net assets................. 4.94% 4.90% 5.24% 3.39% 2.76%
</TABLE>
See accompanying notes.
10
<PAGE> 11
OLDE CUSTODIAN FUND
OLDE PREMIUM PLUS MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 26.85%
$ 25,000,000 Aetna Services Incorporated, 5.580%, due 05/01/97...........................................$ 25,000,000
19,500,000 Textron Incorporated, 5.730%, due 05/01/97.................................................. 19,500,000
12,000,000 Merrill Lynch & Company, 5.520%, due 05/02/97............................................... 11,998,160
8,955,000 Countrywide Home Loans, 5.570%, due 05/02/97................................................ 8,953,614
15,855,000 PHH Corporation, 5.510%, due 05/02/97....................................................... 15,852,573
15,150,000 Sears Acceptance Corporation, 5.560%, due 05/05/97.......................................... 15,140,641
20,000,000 Heller Financial Incorporated, 5.520%, due 05/06/97......................................... 19,984,667
35,575,000 Chrysler Financial Corporation, 5.550%, due 05/07/97........................................ 35,542,093
27,320,000 Heller Financial Incorporated, 5.530%, due 05/08/97......................................... 27,290,623
18,165,000 Heller Financial Incorporated, 5.540%, due 05/09/97......................................... 18,142,637
17,830,000 John Deere Capital Corporation, 5.520%, due 05/13/97........................................ 17,797,193
35,105,000 Prudential Funding, 5.520%, 05/15/97........................................................ 35,029,641
32,680,000 Household Finance Corporation, 5.510%, due 05/16/97......................................... 32,604,972
34,360,000 Household Finance Corporation, 5.490%, due 05/19/97......................................... 34,265,682
30,000,000 Ford Motor Credit Company of Puerto Rico, 5.510%, due 05/20/97.............................. 29,912,758
13,165,000 General Motors Acceptance Corporation, 5.520%, due 05/21/97................................. 13,124,627
32,695,000 Heller Financial Incorporated, 5.580%, due 05/22/97......................................... 32,588,578
25,950,000 American General Finance, 5.510%, due 05/23/97.............................................. 25,862,621
25,395,000 Chrysler Financial Corporation, 5.520%, due 05/28/97........................................ 25,289,865
21,370,000 Aetna Services Incorporated, 5.570%, due 05/29/97........................................... 21,277,420
8,515,000 General Motors Acceptance Corporation, 5.590%, due 05/30/97................................. 8,476,657
32,075,000 Credit Suisse First Boston, 5.580%, due 06/03/97............................................ 31,910,936
22,255,000 Budget Funding Corporation, 5.590%, due 06/05/97............................................ 22,134,143
-----------
527,680,101
YANKEE COMMERCIAL PAPER - 4.21%
31,000,000 Ford Credit Europe PLC, 5.530%, due 05/27/97................................................ 30,876,190
23,000,000 Ford Credit Europe PLC, 5.570%, due 06/04/97................................................ 22,879,007
3,925,000 American Honda Finance Corporation, 5.600%, due 06/09/97.................................... 3,901,188
25,420,000 Ford Credit Europe PLC, 5.570%, due 06/16/97................................................ 25,239,080
-----------
82,895,465
BANK OBLIGATIONS - 8.34%
43,000,000 Royal Bank of Canada-NY, 5.560%, due 11/14/97 (a)........................................... 42,974,419
80,000,000 Bankers Trust Company, 5.660%, due 12/10/97 (a)............................................. 79,963,824
20,000,000 Societe Generale-NY, 5.850%, due 03/03/98................................................... 19,993,119
21,000,000 Canadian Imperial Bank of Commerce, 5.940%, due 02/17/98.................................... 20,998,240
-----------
163,929,602
SHORT-TERM NOTES - 53.84%
9,600,000 Associates Corporation, NA, 9.700%, due 05/01/97............................................ 9,599,999
30,000,000 American Honda Finance Corporation, 5.688%, due 05/05/97 (a)................................ 9,999,836
25,000,000 Ford Motor Credit Company, 5.710%, due 05/12/97 (a)......................................... 25,000,205
25,000,000 Paccar Financial Corporation, 5.563%, due 05/14/97 (a)...................................... 24,999,219
37,000,000 FCC National Bank, 6.040%, due 06/19/97..................................................... 36,997,153
18,000,000 IBM Corporation, 5.500%, due 06/20/97 (a)................................................... 17,998,170
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> SHORT-TERM NOTES - (CONTINUED) <C>
$ 9,500,000 Chrysler Financial Corporation, 5.805%, due 06/23/97 (a)............... $ 9,503,135
19,000,000 John Deere Capital Corporation, 5.950%, due 06/30/97................... 18,996,459
43,000,000 G.E. Capital Corporation, 5.750%, due 07/08/97 (a)..................... 43,000,000
53,000,000 Morgan Stanley Group, 5.796%, due 07/10/97 (a)......................... 53,000,000
22,000,000 American Express Centurion Bank, 5.658%, due 07/11/97 (a).............. 22,000,000
25,000,000 Abbey National Bank, 5.550%, due 07/15/97 (a).......................... 24,996,809
35,000,000 Dean Witter, Discover & Company, 5.638%, due 08/08/97 (a).............. 34,996,748
43,000,000 IBM Credit Corporation, 5.740%, due 08/14/97........................... 42,991,662
25,000,000 Ford Motor Credit Company, 5.461%, due 09/02/97 (a).................... 25,007,376
35,000,000 Paccar Financial Corporation, 5.563%, due 09/22/97 (a)................. 34,988,459
19,000,000 Australia & New Zealand Bank, 5.900%, due 09/23/97..................... 19,012,168
39,000,000 PNC Bank , National Association, 5.588%, due 10/01/97 (a).............. 38,987,114
24,945,000 Province of Ontario, 5.700%, due 10/01/97.............................. 24,912,462
44,000,000 Merrill Lynch & Company, 5.658%, due 10/03/97 (a)...................... 44,000,000
17,000,000 American Express Centurion Bank, 5.658%, due 10/10/97 (a).............. 17,000,000
17,000,000 Republic Mase Australia, 5.650%, due 10/31/97.......................... 16,991,834
37,000,000 Bank One, Dayton, 5.560%, due 11/03/97 (a)............................. 36,988,848
10,000,000 B.H.P. Finance U.S.A., 7.000%, due 12/01/97............................ 10,072,425
10,000,000 Chrysler Financial Corporation, 5.938%, due 01/09/98 (a)............... 10,018,826
34,000,000 PNC Bank, National Association, 5.598%, due 01/09/98 (a)............... 33,983,837
10,000,000 Chrysler Financial Corporation, 5.938%, due 01/09/98 (a)............... 10,018,724
37,000,000 PHH Corporation, 5.658%, due 01/27/98 (a).............................. 36,994,580
37,000,000 IBM Corporation, 5.670%, due 01/28/98.................................. 36,871,593
19,000,000 Merrill Lynch & Company, 5.700%, due 02/18/98.......................... 18,999,237
19,000,000 IBM Credit Corporation, 5.650%, due 02/27/98........................... 18,990,882
70,000,000 Associates Corporation, NA, 5.580%, due 03/02/98 (a)................... 69,954,996
19,000,000 Bank of America Illinois, 5.850%, due 03/13/98......................... 18,983,497
21,000,000 Credit Suisse First Boston, 5.915%, due 03/13/98....................... 21,000,000
37,000,000 American Express Centurion Bank, 5.658%, due 03/20/98 (a).............. 37,000,000
20,000,000 Morgan Guaranty Trust, 6.022%, due 03/25/98............................ 19,986,617
13,000,000 Abbey National Bank, 6.100%, due 04/02/98.............................. 12,985,164
25,000,000 Merrill Lynch & Company, 6.225%, due 04/07/98.......................... 25,000,000
25,000,000 American Honda Finance, 5.688%, due 04/08/98 (a)....................... 24,988,288
-----------------
1,057,816,322
U.S. GOVERNMENT SECURITIES - 2.50%
31,000,000 U.S. Treasury Note, 6.125%, due 06/02/97............................... 31,007,484
18,000,000 U.S. Treasury Note, 7.250%, due 02/17/98............................... 18,198,109
-----------------
49,205,593
U.S. GOVERNMENT AGENCY SECURITIES - 3.66%
35,000,000 Student Loan Marketing Association, 5.620%, due 06/30/97............... 34,976,750
37,000,000 Federal Farm Credit Bank, 5.470%, due 02/03/98 (a)..................... 36,989,224
-----------------
71,965,974
-----------------
TOTAL INVESTMENTS - 99.4%..................... 1,953,493,057
OTHER ASSETS LESS LIABILITIES - 0.6%.......... 11,183,849
-----------------
NET ASSETS - 100.0%........................... $ 1,964,676,906
=================
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates
as of April 30, 1997.
See accompanying notes.
12
<PAGE> 13
OLDE CUSTODIAN FUND
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C> <C>
Investments at amortized cost (Note 1).............................................................. $ 1,953,493,057
Interest receivable................................................................................. 13,169,703
Prepaid expenses.................................................................................... 207,829
---------------
Total assets................................................................................. 1,966,870,589
LIABILITIES:
Dividends payable (Note 2).......................................................................... 1,825,691
Accrued expenses.................................................................................... 155,295
Payable to OLDE Asset Management, Inc............................................................... 212,697
---------------
Total liabilities............................................................................. 2,193,683
---------------
NET ASSETS applicable to 1,964,676,906 outstanding shares,
unlimited number of shares authorized, $0.01 par value................................................... $ 1,964,676,906
===============
NET ASSET value, offering and redemption price per share
on 1,964,676,906 shares of beneficial interest outstanding............................................... $ 1.00
================
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
INTEREST INCOME (Note 1): ................................................................................. $ 53,638,922
EXPENSES:
Management fees..................................................................................... 1,443,693
Transfer agent fees................................................................................. 247,931
Custodian fees...................................................................................... 41,399
Professional fees................................................................................... 10,177
Accounting fees..................................................................................... 8,250
Printing and postage................................................................................ 7,240
Trustee fees........................................................................................ 11,780
Insurance........................................................................................... 7,703
Amortization of organizational costs................................................................ 2,011
Registration costs.................................................................................. 167,194
12b-1 distribution costs............................................................................ 594,956
----------------
Total expenses ................................................................................ 2,542,334
Expenses waived and reimbursed............................................................................. (1,893,171)
----------------
NET EXPENSES.......................................................................................... 649,163
----------------
NET INVESTMENT INCOME...................................................................................... $ 52,989,759
================
</TABLE>
See accompanying notes.
13
<PAGE> 14
OLDE CUSTODIAN FUND
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
OPERATIONS: ------------------ ----------------
<S> <C> <C>
Net investment income................................................ $ 52,989,759 $ 83,074,708
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................ (52,989,759) (83,074,708)
SHARE TRANSACTIONS (at $1.00 per share):
Proceeds from sales of shares........................................ 1,886,988,531 3,243,478,670
Net asset value of shares issued in reinvestment of dividends........ 51,452,145 79,753,027
---------------- ---------------
1,938,440,676 3,323,231,697
Cost of shares redeemed.............................................. (1,799,243,866) (2,669,874,893)
---------------- ---------------
Net increase in shareholders' equity from share transactions......... 139,196,810 653,356,804
---------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY..................................... 139,196,810 653,356,804
SHAREHOLDERS' EQUITY:
At beginning of period.............................................. 1,825,480,096 1,172,123,292
---------------- ---------------
At end of period..................................................... $ 1,964,676,906 $ 1,825,480,096
================ ===============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, 1997 OCT. 31, 1996 OCT. 31, 1995 OCT. 31, 1994 OCT. 31, 1993
-------------- ------------- ------------- ------------- -------------
<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................. 0.0273 0.0560 0.0598 0.0401 0.0342
DISTRIBUTIONS:
Dividends from net investment income.. (0.0273) (0.0560) (0.0598) (0.0401) (0.0342)
----------- ---------- ---------- ---------- -----------
NET ASSET VALUE, END OF PERIOD........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ===========
TOTAL RETURN(ANNUALIZED)................. 5.51% 5.60% 5.98% 4.01% 3.42%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted)...................... $ 1,964,677 $1,825,480 $1,172,123 $ 392,304 $ 170,630
Ratio of expenses to average net
assets............................... 0.07% - - - -
Ratio of net investment income
to average net assets................. 5.51% 5.60% 5.98% 4.01% 3.42%
</TABLE>
See accompanying notes.
14
<PAGE> 15
OLDE CUSTODIAN FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997
(UNAUDITED)
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 investment
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
have been fully 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 each 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.
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:
OLDE Money Market Series 0.50%
OLDE Premium Money Market Series 0.30%
OLDE Premium Plus Money Market Series 0.15%
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Service 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.
The Fund has an Underwriting Agreement with OLDE Discount. As
underwriter for the Fund, OLDE Discount received no
commissions for the six months ended April 30, 1997. For the
six months ended April 30, 1997, the Fund made no direct
payments to its officers and affiliated trustees and incurred
trustee fees of $17,210 to unaffiliated trustees.
The Adviser 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 limit 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 six months ended April 30, 1997, the Series incurred total
expenses of $2,542,334. The Adviser waived fees of
$1,443,101. OLDE Discount waived transfer agency fees of
$80,026 and 12b-1 expenses of $278,105 and the balance of
$91,939 in expenses was reimbursed by the Adviser.
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:
OLDE Money Market Series 0.25%
OLDE Premium Money Market Series 0.15%
OLDE Premium Plus Money Market Series 0.15%
For the six months ended April 30, 1997, the annualized
percentage rate of 12b-1 expense was .06% for OLDE Money
Market Series, .13% for OLDE Premium Money Market Series and
.06% for OLDE Premium Plus Money Market Series.
6. INVESTMENT SECURITIES TRANSACTIONS Investment securities
transactions for the six months ended April 30, 1997 are as
follows:
OLDE Money Market Series:
Purchases: $ 1,017,444,514
Sales (including maturities): $ 1,015,413,999
OLDE Premium Money Market Series:
Purchases: $ 728,509,227
Sales (including maturities): $ 710,104,258
OLDE Premium Plus Money Market Series:
Purchases: $ 4,860,571,293
Sales (including maturities): $ 4,745,008,110
7. BANK LINE OF CREDIT
At April 30, 1997 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 April 30, 1997.
16
