<PAGE> 1
OLDE
CUSTODIAN FUND
ANNUAL REPORT
OCTOBER 31, 1997
OLDE MONEY
MARKET SERIES
OLDE PREMIUM
MONEY MARKET SERIES
OLDE PREMIUM PLUS
MONEY MARKET SERIES
INVESTMENT ADVISER
OLDE ASSET MANAGEMENT, INC.
PRINCIPAL UNDERWRITER
OLDE DISCOUNT CORPORATION
CUSTODIAN
THE BANK OF NEW YORK
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
TRANSFER AGENT
OLDE DISCOUNT CORPORATION
For information regarding your
account, telephone your local
OLDE Discount branch office
or
OLDE Discount Customer Service
at: 1-800-235-3100
This report is authorized for use by
nonshareholders only when accompanied or
preceded by a current prospectus of
OLDE Custodian Fund.
81317-12/97
<PAGE> 2
[OLDE CUSTODIAN FUND LOGO]
December 11, 1997
Dear Shareholder:
OLDE Custodian Fund is pleased to present the Annual Report for the year ending
October 31, 1997. The Fund consists of OLDE Money Market Series, OLDE Premium
Money Market Series, and OLDE Premium Plus Money Market Series ("the Funds").
This report contains audited schedules of investments and financial statements
for all three Series.
Investors'concern over higher interest rates in the first quarter of 1997 eased
as the year progressed. It was feared that economic growth and tight labor
markets would result in price pressures, leading to a response from the Federal
Reserve Board ("the Fed") to increase the Federal funds rate. The recent rally
in the long-term bond market and the drop in short-term interest rates suggest
that investors have become more comfortable with the economy's current trends.
In the meantime, while the Fed has maintained a preference toward tightening,
inflation rates have not warranted an interest rate move. Additionally, the
recent turmoil in Asian financial markets has limited the Fed's options. An
increase now may undermine already fragile Asian financial markets and heighten
the effects that an Asian crisis would have on the U.S. economy.
In this environment, the Adviser has continued to concentrate the Funds'
holdings in the more stable U.S. and European economies. Relatively heavy
issuance of variable rate securities by U.S. and European companies has enabled
the Funds to maintain their focus on such securities. The associated yields have
continued to be in excess of comparable short-term securities and have been
instrumental in supporting the Funds' strong relative yields.
As market conditions dictate, the Adviser will adjust the portfolios to take
advantage of opportunities as they arise. As always, be assured the Adviser
seeks to provide investors with attractive yields, while investing in high
quality securities.
Sincerely,
OLDE CUSTODIAN FUND
/s/ Lisa S. Fildes
-----------------------
Lisa S. Fildes
President
2
<PAGE> 3
OLDE CUSTODIAN FUND
OLDE MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 22.42%
$ 325,000 Nabisco Incorporated, 5.800%, due 11/03/97........................................ $ 324,897
8,765,000 Chrysler Financial, 5.530%, due 11/04/97.......................................... 8,760,961
8,000,000 Sears Acceptance, 5.530%, due 11/05/97............................................ 7,995,084
3,910,000 Bear Stearns Company, 5.530%, due 11/10/97........................................ 3,904,594
2,075,000 Heller Financial Incorporated, 5.580%, due 11/10/97............................... 2,072,105
8,000,000 General Motors Acceptance Corporation, 5.550%, due 11/18/97...................... 7,979,033
7,290,000 G.T.E. Corporation, 5.620%, due 11/18/97.......................................... 7,270,653
8,345,000 Budget Funding, 5.520%, due 11/19/97.............................................. 8,321,968
4,990,000 American Express Credit, 5.520%, due 12/29/97..................................... 4,945,622
6,000,000 General Motors Acceptance Corporation, 5.520%, due 12/30/97...................... 5,945,720
10,000,000 Salomon Incorporated, 5.670%, due 12/31/97........................................ 9,905,500
8,000,000 Salomon Incorporated, 5.670%, due 01/02/98........................................ 7,921,880
9,000,000 G.E. Capital Corporation, 5.674%, due 04/13/98 (a)............................... 9,000,000
6,000,000 G.E. Capital Corporation, 5.701%, due 07/17/98 (a)............................... 6,000,000
----------
90,348,017
YANKEE COMMERCIAL PAPER - 12.04%
7,000,000 Boral Industries, 5.520%, due 11/07/97............................................ 6,993,560
6,330,000 BMW U.S. Capital Corporation, 5.520%, due 11/12/97................................ 6,319,323
6,000,000 American Honda Finance, 5.560%, due 11/13/97...................................... 5,988,880
8,470,000 American Honda Finance, 5.560%, due 11/14/97...................................... 8,452,994
7,560,000 BMW U.S. Capital Corporation, 5.560%, due 11/21/97................................ 7,536,648
7,000,000 BMW U.S. Capital Corporation, 5.550%, due 12/16/97................................ 6,951,438
6,325,000 Toshiba International Financial, 5.620%, due 01/12/98............................. 6,253,907
----------
48,496,750
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT TERM NOTES - 61.86%
$ 8,000,000 Bank One Dayton, 5.620%, due 11/03/97 (a)......................................... $7,999,973
6,000,000 Associates Corporation NA, 6.625%, due 11/15/97................................... 6,001,655
10,000,000 First Bank NA, 5.585%, due 11/19/97 (a)........................................... 10,000,000
6,000,000 Toyota Motor Credit Corporation, 7.750%, due 12/19/97............................. 6,013,068
13,000,000 PNC Bank NA, 5.535%, due 01/09/98 (a)............................................. 12,998,315
5,000,000 Chrysler Financial, 5.969%, due 01/16/98 (a) ..................................... 5,002,884
8,000,000 PHH Corporation, 5.626%, due 01/27/98 (a)......................................... 7,999,623
9,000,000 IBM Corporation, 5.670%, due 01/28/98 ............................................ 8,989,895
3,000,000 Paccar Financial Corporation, 5.880%, due 02/17/98................................ 2,997,840
4,000,000 Merrill Lynch & Company, 5.700%, due 02/18/98..................................... 3,999,940
4,000,000 IBM Credit Corporation, 5.650%, due 02/27/98 ..................................... 3,999,251
15,000,000 Associates Corporation, NA, 5.590%, due 03/02/98 (a).............................. 14,996,177
2,900,000 G.E. Capital Corporation, 8.625%, due 03/12/98.................................... 2,925,599
11,000,000 Bank Of America Illinois, 5.850%, due 03/13/98.................................... 10,996,008
8,000,000 American Express Centurion, 5.595%, due 03/20/98 (a).............................. 8,000,000
7,000,000 Abbey National Treasury, 6.100%, due 04/02/98..................................... 6,996,387
7,000,000 Bear Stearns Company, 5.605%, due 04/09/98 (a).................................... 7,000,583
12,000,000 First USA Bank, 6.058%, due 04/15/98 (a).......................................... 12,020,205
5,000,000 American Express Centurion, 5.595%, due 05/12/98 (a).............................. 5,000,505
8,000,000 Credit Suisse First Boston, 5.450%, due 05/12/98 (a).............................. 8,000,000
6,000,000 Paccar Financial Corporation, 5.535%, due 05/14/98 (a)............................ 5,998,760
6,000,000 Ford Motor Credit, 6.119%, due 05/26/98 (a)....................................... 6,014,205
4,000,000 PHH Corporation, 5.656%, due 05/26/98 (a)......................................... 4,000,000
4,000,000 Merrill Lynch & Company, 6.155%, due 06/02/98..................................... 4,000,000
8,000,000 Household Finance Corporation, 5.710%, due 06/03/98 (a)........................... 8,000,000
7,000,000 Bank Of America NA, 6.050%, due 06/10/98.......................................... 6,999,066
5,000,000 LaSalle National Bank, 5.980%, due 07/06/98....................................... 4,999,030
4,000,000 IBM Credit Corporation, 5.890%, due 07/20/98...................................... 4,000,341
4,000,000 PHH Corporation, 5.605%, due 08/10/98 (a)......................................... 3,999,391
9,000,000 Dean Witter Discover, 5.665%, due 08/17/98 (a).................................... 9,006,676
5,000,000 John Deere Capital Corporation, 5.709%, due 09/14/98.............................. 5,002,572
3,351,000 Daimler-Benz North America, 8.000%, due 10/01/98.................................. 3,406,695
5,000,000 John Deere Capital Corporation, 5.769%, due 10/02/98 (a).......................... 5,002,888
12,000,000 Merrill Lynch & Company, 5.650%, due 10/13/98 (a)................................. 11,998,335
5,000,000 PHH Corporation, 5.596%, due 11/03/98 (a)......................................... 4,999,016
10,000,000 U.S. Bancorp NA, 5.495%, due 11/16/98 (a) ........................................ 9,993,310
------------
249,358,193
U.S. GOVERNMENT SECURITIES - 1.00%
4,000,000 U.S. Treasury Note, 7.250%, due 02/15/98........................................... 4,016,283
------------
4,016,283
U.S. Government Agency Securities - 1.98%
8,000,000 Federal Farm Credit Bank, 5.630%, due 02/03/98 (a)................................. 7,999,212
------------
7,999,212
------------
Total Investments - 99.3% ................................. 400,218,455
Other Assets Less Liabilities - 0.7% ....................... 2,948,932
------------
Net Assets - 100.0% ........................................ $403,167,387
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates
as of October 31, 1997.
See accompanying notes.
4
<PAGE> 5
OLDE CUSTODIAN FUND
OLDE MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at amortized cost (Note 1).............................................................. $400,218,455
Interest receivable................................................................................. 3,259,566
Prepaid expenses.................................................................................... 45,464
------------
TOTAL ASSETS ..................................................................................... 403,523,485
LIABILITIES:
Dividends payable (Note 2).......................................................................... 51,070
Accrued expenses.................................................................................... 183,004
Payable to OLDE Asset Management, Inc............................................................... 122,024
------------
TOTAL LIABILITIES ................................................................................ 356,098
------------
NET ASSETS applicable to 403,167,387 outstanding shares,
unlimited number of shares authorized, $0.01 par value.............................................. $403,167,387
============
NET ASSET VALUE, offering and redemption price per share
on 403,167,387 shares of beneficial interest outstanding............................................ $1.00
============
</TABLE>
OLDE MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):............................................................................. $ 23,111,885
EXPENSES:
Management fees..................................................................................... 2,044,393
Transfer agent fees................................................................................. 1,360,787
Custodian fees...................................................................................... 38,085
Professional fees................................................................................... 15,721
Accounting fees..................................................................................... 16,500
Printing and postage................................................................................ 54,750
Trustee fees........................................................................................ 7,300
Insurance........................................................................................... 10,054
Registration costs.................................................................................. 112,809
12b-1 distribution costs............................................................................ 238,552
------------
TOTAL EXPENSES .................................................................................... 3,898,951
------------
NET INVESTMENT INCOME ................................................................................ $ 19,212,934
============
</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
1997 1996
-------- --------
<S> <C> <C>
OPERATIONS:
Net investment income................................................. $ 19,212,934 $ 15,486,549
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................. (19,212,934) (15,486,549)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares......................................... 1,744,307,612 1,465,487,864
Net asset value of shares issued in reinvestment of dividends......... 18,397,929 14,559,552
--------------- ---------------
1,762,705,541 1,480,047,416
Cost of shares redeemed (1,732,685,036) (1,420,132,540)
--------------- ---------------
Net increase in shareholders' equity from share transactions.......... 30,020,505 59,914,876
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY .................................... 30,020,505 59,914,876
SHAREHOLDERS' EQUITY:
At beginning of year................................................. 373,146,882 313,232,006
--------------- ---------------
At end of year........................................................ $ 403,167,387 $ 373,146,882
=============== ===============
</TABLE>
OLDE MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a share of capital stock outstanding throughout each year:
Year Ended October 31
1997 1996 1995 1994 1993
------ ------ ------- ------ ------
<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................................. 0.0470 0.0460 0.0487 0.0293 0.0230
-------- -------- -------- -------- --------
DISTRIBUTIONS:
Dividends from net investment income.................. (0.0470) (0.0460) (0.0487) (0.0293) (0.0230)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total return (annualized)............................. +4.70% +4.60% +4.87% +2.93% +2.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)............. $403,167 $373,147 $313,232 $209,288 $206,775
Ratio of expenses to average net assets............... 0.95% 1.00% 1.07% 1.05% 1.10%
Ratio of net investment income
to average net assets................................. 4.70% 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
OCTOBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 33.85%
$1,930,000 Nabisco Incorporated, 5.800%, due 11/03/97............................................ $ 1,929,378
4,565,000 G.E. Credit Capital Services, 5.530%, due 11/04/97.................................... 4,562,896
6,645,000 Heller Financial Incorporated, 5.570%, due 11/05/97................................... 6,640,888
4,050,000 Bear Stearns Company, 5.530%, due 11/06/97............................................ 4,046,890
4,860,000 General Motors Acceptance Corporation, 5.560%, due 11/07/97........................... 4,855,497
4,800,000 Sears Acceptance Corporation, 5.530%, due 11/10/97.................................... 4,793,364
3,925,000 Budget Funding, 5.550%, due 11/13/97.................................................. 3,917,738
5,000,000 General Motors Acceptance Corporation, 5.550%, due 11/18/97........................... 4,986,896
6,485,000 Prudential Funding, 5.500%, due 11/19/97.............................................. 6,467,166
4,490,000 G.E. Company, 5.490%, due 11/20/97.................................................... 4,476,990
4,000,000 Budget Funding, 5.520%, due 11/24/97.................................................. 3,985,893
3,945,000 Budget Funding, 5.520%, due 11/25/97.................................................. 3,930,482
7,310,000 G.T.E. Corporation, 5.580%, due 11/26/97.............................................. 7,281,674
3,805,000 American Express Credit, 5.520%, due 12/26/97......................................... 3,772,911
5,000,000 General Motors Acceptance Corporation, 5.520%, due 12/29/97........................... 4,955,533
5,750,000 Ford Motor Credit, 5.490%, due 12/30/97............................................... 5,698,265
7,000,000 Salomon Incorporated, 5.670%, due 12/31/97............................................ 6,933,850
6,000,000 Salomon Incorporated, 5.670%, due 01/02/98............................................ 5,941,410
5,000,000 G.E. Capital Corporation, 5.674%, due 04/13/98 (a).................................... 5,000,000
4,000,000 G.E. Capital Corporation, 5.701%, due 07/17/98 (a).................................... 4,000,000
-----------
98,177,721
YANKEE COMMERCIAL PAPER - 3.88%
3,390,000 American Honda Finance, 5.560%, due 11/12/97.......................................... 3,384,241
4,910,000 BMW U.S. Capital Corporation, 5.560%, due 11/21/97.................................... 4,894,833
3,000,000 BMW U.S. Capital Corporation, 5.520%, due 12/29/97.................................... 2,973,320
-----------
11,252,394
BANK OBLIGATIONS - 10.35%
7,000,000 Royal Bank Of Canada - New York, 5.570%, due 11/14/97 (a)............................. 6,999,726
4,000,000 Bankers Trust Company, 5.400%, due 12/10/97 (a)....................................... 3,999,694
5,000,000 Societe Generale New York, 5.850%, due 03/03/98....................................... 4,999,314
4,000,000 Canadian Imperial Bank Co, 5.940%, due 03/17/98....................................... 3,999,858
4,000,000 Deutsche Bank New York, 6.160%, due 05/22/98.......................................... 3,999,366
6,000,000 Credit Suisse First Boston, 5.715%, due 10/22/98 (a).................................. 6,000,000
-----------
29,997,958
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT-TERM NOTES - 48.46%
$ 5,000,000 IBM Corporation, 6.375%, due 11/01/97............................................... $ 5,000,092
5,000,000 Bank One Dayton, 5.620%, due 11/03/97 (a)........................................... 4,999,983
5,510,000 Associates Corporation NA, 6.625%, due 11/15/97..................................... 5,511,520
3,000,000 PNC Bank NA, 5.535%, due 01/09/98 (a)............................................... 2,999,611
3,000,000 Chrysler Finance, 5.969%, due 01/16/98 (a).......................................... 3,001,730
5,000,000 PHH Corporation, 5.626%, due 01/27/98 (a)........................................... 4,999,764
4,000,000 IBM Corporation, 5.670%, due 01/28/98............................................... 3,995,509
2,000,000 Paccar Financial Corporation, 5.880%, due 02/17/98................................ 1,998,560
2,000,000 Merrill Lynch & Company, 5.700%, due 02/18/98...................................... 1,999,970
2,000,000 IBM Credit Corporation, 5.650%, due 02/27/98....................................... 1,999,625
8,000,000 Associates Corporation NA, 5.590%, due 03/02/98 (a)................................ 7,997,964
4,000,000 Credit Suisse First Boston, 5.915%, due 03/13/98.................................... 4,000,000
5,000,000 American Express Centurion, 5.595%, due 03/20/98 (a).............................. 5,000,000
5,000,000 Abbey National Treasury, 6.100%, due 04/02/98..................................... 4,997,418
3,000,000 Bear Stearns Company, 5.605%, due 04/09/98 (a)..................................... 3,000,250
2,000,000 Credit Suisse First Boston, 5.450%, due 05/12/98 (a)................................ 2,000,000
3,000,000 American Express Centurion, 5.595%, due 05/12/98 (a)............................... 3,000,303
4,000,000 Paccar Financial Corporation, 5.535%, due 05/14/98 (a)............................. 3,999,172
4,000,000 Ford Motor Credit, 6.119%, due 05/26/98 (a)........................................ 4,009,469
2,000,000 PHH Corporation, 5.656%, due 05/26/98 (a)........................................... 2,000,000
5,000,000 Merrill Lynch & Company, 6.155%, due 06/02/98....................................... 5,000,000
3,000,000 Household Finance Corporation, 5.710%, due 06/03/98 (a)............................. 3,000,000
4,000,000 Bank Of America NA, 6.050%, due 06/10/98........................................... 3,999,466
9,000,000 Societe Generale New York, 5.630%, due 06/16/98 (a)................................. 8,997,728
2,000,000 LaSalle National Bank, 5.980%, due 07/06/98....................................... 1,999,612
2,000,000 IBM Credit Corporation, 5.890%, due 07/20/98....................................... 2,000,171
6,000,000 PHH Corporation, 5.605%, due 08/10/98 (a)........................................... 5,999,087
8,000,000 Dean Witter Discover, 5.665%, due 08/17/98 (a).................................... 8,005,935
5,000,000 Ford Motor Credit, 5.969%, due 08/26/98 (a)......................................... 5,012,006
3,000,000 John Deere Capital Corporation, 5.709%, due 09/14/98 (a)............................ 3,001,543
3,000,000 John Deere Capital Corporation, 5.769%, due 10/02/98 (a)............................ 3,001,733
7,000,000 Merrill Lynch & Company, 5.650%, due 10/13/98 (a)................................... 6,999,029
7,000,000 U.S. Bancorp NA, 5.495%, due 11/16/98 (a)........................................... 6,995,317
------------
140,522,567
U.S. GOVERNMENT SECURITIES - 1.04%
3,000,000 U.S. Treasury Note, 7.250%, due 02/15/98............................................ 3,012,211
------------
3,012,211
U.S. GOVERNMENT AGENCY SECURITIES - 1.72%
5,000,000 Federal Farm Credit Bank, 5.530%, due 02/03/98 (a).................................. 4,999,508
------------
4,999,508
------------
TOTAL INVESTMENTS - 99.3% ................... 287,962,359
OTHER ASSETS LESS LIABILITIES - 0.7% ....... 2,000,579
------------
NET ASSETS - 100.0%......................... $289,962,938
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates
as of October 31, 1997.
See accompanying notes.
8
<PAGE> 9
OLDE CUSTODIAN FUND
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1)............................................................. $287,962,359
Interest receivable................................................................................ 2,249,860
Prepaid expenses................................................................................... 31,534
------------
TOTAL ASSETS ................................................................................... 290,243,753
LIABILITIES:
Dividends payable (Note 2)......................................................................... 41,788
Accrued expenses................................................................................... 130,080
Payable to OLDE Asset Management, Inc.............................................................. 108,947
------------
TOTAL LIABILITIES .............................................................................. 280,815
------------
NET ASSETS applicable to 289,962,938 outstanding shares,
unlimited number of shares authorized, $0.01 par value............................................. $289,962,938
============
NET ASSET VALUE, offering and redemption price per share
on 289,962,938 shares of beneficial interest outstanding........................................... $1.00
============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):.............................................................................. $15,299,610
EXPENSES:
Management fees...................................................................................... 810,533
Transfer agent fees.................................................................................. 379,711
Custodian fees....................................................................................... 26,483
Professional fees.................................................................................... 15,649
Accounting fees...................................................................................... 16,500
Printing and postage................................................................................. 10,950
Trustee fees......................................................................................... 3,650
Insurance............................................................................................ 9,036
Registration costs................................................................................... 97,674
12b-1 distribution costs............................................................................. 188,360
-----------
TOTAL EXPENSES ...................................................................................... 1,558,546
-----------
NET INVESTMENT INCOME ................................................................................. $13,741,064
===========
</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
1997 1996
OPERATIONS: ------ ------
<S> <C> <C>
Net investment income.................................................... $ 13,741,064 $ 10,259,516
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.................................................... (13,741,064) (10,259,516)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares........................................... 864,458,150 689,651,366
Net asset value of shares issued in reinvestment of dividends........... 13,233,279 9,649,262
------------- -------------
877,691,429 699,300,628
Cost of shares redeemed................................................ (821,690,883) (643,540,931)
------------- -------------
Net increase in shareholders' equity from share transactions........... 56,000,546 55,759,697
NET INCREASE IN SHAREHOLDERS' EQUITY .................................... 56,000,546 55,759,697
SHAREHOLDERS' EQUITY:
At beginning of year................................................... 233,962,392 178,202,695
------------- -------------
At end of year......................................................... $ 289,962,938 $ 233,962,392
============= =============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1997 1996 1995 1994 1993
-------- -------- -------- -------- ----------
<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......................... 0.0508 0.0490 0.0524 0.0339 0.0276
DISTRIBUTIONS:
Dividends from net investment income.......... (0.0508) (0.0490) (0.0524) (0.0339) (0.0276)
-------- -------- -------- ------- --------
NET ASSET VALUE, END OF YEAR .................... $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======= ========
Total return (annualized) .................... +5.08% +4.90% +5.24% +3.39% +2.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted) $289,963 $233,962 $178,203 $87,946 $103,317
Ratio of expenses to average net assets....... 0.58% 0.70% 0.70% 0.60% 0.70%
Ratio of net investment income
to average net assets......................... 5.08% 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
OCTOBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
DOMESTIC COMMERCIAL PAPER - 31.46%
$ 5,235,000 Nabisco Incorporated, 5.800%, due 11/03/97..........................................$ 5,233,312
29,155,000 G.E. Credit Capital Service, 5.530%, due 11/04/97.................................... 29,141,565
31,760,000 G.E. Capital Services, 5.510%, due 11/05/97......................................... 31,740,556
34,120,000 Sears Acceptance Corporation, 5.540%, due 11/07/97................................... 34,088,496
34,000,000 Morgan Stanley Dean Witter, 5.520%, due 11/10/97..................................... 33,953,080
20,000,000 Budget Funding, 5.550%, due 11/12/97................................................ 19,966,083
21,000,000 GTE Corporation, 5.620%, due 11/13/97................................................ 20,960,660
42,000,000 G.E. Company, 5.490%, due 11/13/97.................................................. 41,923,140
30,000,000 General Motors Acceptance Corporation, 5.550%, due 11/17/97.......................... 29,926,000
43,635,000 Prudential Funding, 5.500%, due 11/18/97............................................. 43,521,670
34,570,000 Heller Financial Incorporated, 5.570%, due 11/19/97................................. 34,473,723
43,560,000 Budget Funding Corporation, 5.530%, due 11/20/97..................................... 43,432,865
13,755,000 Heller Financial Incorporated, 5.570%, due 11/21/97................................. 13,712,436
20,000,000 American Express Credit, 5.520%, due 12/29/97....................................... 19,822,133
18,000,000 American Express Credit, 5.520%, due 12/30/97........................................ 17,837,160
31,000,000 General Motors Acceptance Corporation, 5.520%, due 12/30/97.......................... 30,719,553
8,825,000 American Express Credit, 5.520%, due 12/31/97........................................ 8,743,810
50,000,000 Salomon Incorporated, 5.670%, due 12/31/97........................................... 49,527,500
45,000,000 Salomon Incorporated, 5.670%, due 01/02/98........................................... 44,560,575
31,130,000 Bear Stearns Company, 5.610%, due 01/05/98........................................... 30,814,679
36,000,000 G.E. Capital Corporation, 5.674%, due 04/13/98 (a)................................... 36,000,000
30,000,000 G.E. Capital Corporation, 5.701%, due 07/17/98 (a).................................. 30,000,000
------------
650,098,996
YANKEE COMMERCIAL PAPER - 6.25%
20,340,000 BMW U.S. Capital Corporation, 5.520%, due 11/06/97................................... 20,324,406
10,000,000 BMW U.S. Capital Corporation, 5.550%, due 11/12/97................................... 9,983,042
6,200,000 BMW U.S. Capital Corporation, 5.560%, due 11/21/97................................... 6,180,849
14,760,000 BMW U.S. Capital Corporation, 5.500%, due 11/21/97................................... 14,714,900
18,000,000 BMW U.S. Capital Corporation, 5.550%, due 12/16/97................................... 17,875,125
26,395,000 BMW U.S. Capital Corporation, 5.520%, due 12/29/97................................... 26,160,260
34,000,000 Credit Suisse First Boston, 5.715%, due 10/22/98.................................... 34,000,000
------------
129,238,582
BANK OBLIGATIONS - 8.71%
43,000,000 Royal Bank Of Canada - New York, 5.570%, due 11/14/97 (a)............................ 42,998,312
80,000,000 Bankers Trust Company, 5.400%, due 12/10/97 (a)..................................... 79,993,674
20,000,000 Societe Generale New York, 5.850%, due 03/03/98...................................... 19,997,257
21,000,000 Canadian Imperial Bank Co, 5.940%, due 03/17/98..................................... 20,999,252
16,000,000 Deutsche Bank New York, 6.160%, due 05/22/98......................................... 15,997,468
------------
179,985,963
SHORT TERM NOTES - 50.22%
37,000,000 Bank One Dayton, 5.620%, due 11/03/97 (a)............................................ 36,999,879
10,000,000 B.H.P. Finance USA, 7.000%, due 12/01/97............................................. 10,010,152
10,000,000 Bankers Trust New York Corporation, 5.640%, due 12/10/97 (a)......................... 9,999,575
13,350,000 Ford Capital BV, 9.375%, due 01/01/98............................................... 13,425,364
34,000,000 PNC Bank NA, 5.535%, due 01/09/98 (a)................................................ 33,995,591
20,000,000 Chrysler Financial, 5.875%, due 01/09/98 (a)......................................... 20,010,240
17,367,000 Associates Corporation N A, 8.125%, due 01/15/98..................................... 17,447,293
9,265,000 Associates Corporation N A, 8.375%, due 01/15/98..................................... 9,312,451
18,800,000 Philip Morris, 6.375%, due 01/15/98.................................................. 18,816,251
22,000,000 Chrysler Financial, 5.969%, due 01/16/98 (a)......................................... 22,012,689
37,000,000 PHH Corporation, 5.626%, due 01/27/98 (a)............................................ 36,998,260
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT -TERM NOTES - (CONTINUED)
$ 37,000,000 IBM Corporation, 5.670%, due 01/28/98........................................ $ 36,958,457
20,000,000 General Motors Acceptance Corporation, 8.375%, due 01/30/98.................. 20,123,428
19,000,000 Merrill Lynch & Company, 5.700%, due 02/18/98................................ 18,999,716
19,000,000 IBM Credit Corporation, 5.650%, due 02/27/98................................. 18,996,437
70,000,000 Associates Corporation NA, 5.590%, due 03/02/98 (a).......................... 69,982,145
15,000,000 Chrysler Financial, 5.580%, due 03/02/98..................................... 14,981,344
5,000,000 G.E. Capital Corporation, 8.625%, due 03/12/98............................... 5,044,136
19,000,000 Bank Of America Illinois, 5.850%, due 03/13/98............................... 18,993,106
21,000,000 Credit Suisse First Boston, 5.915%, due 03/13/98............................ 21,000,000
37,000,000 American Express Centurion, 5.595%, due 03/20/98 (a)......................... 37,000,000
20,000,000 Morgan Guaranty Trust, 6.022%, due 03/25/98.................................. 19,994,124
13,000,000 Abbey National Treasury, 6.100%, due 04/02/98............................... 12,993,289
25,000,000 Merrill Lynch & Company, 6.225%, due 04/07/98................................ 25,000,000
25,000,000 American Honda Finance, 5.625%, due 04/08/98 (a)............................. 24,994,589
15,000,000 Bear Stearns Company, 5.605%, due 04/09/98 (a)............................... 15,001,249
17,000,000 American Express Centurion, 5.595%, due 05/12/98 (a)......................... 17,001,717
30,000,000 Credit Suisse First Boston, 5.450%, due 05/12/98 (a)......................... 30,000,000
30,000,000 Paccar Financial Corporation, 5.535%, due 05/14/98 (a)....................... 29,993,796
20,000,000 Morgan Stanley, 5.989%, due 05/18/98 (a).................................... 20,034,717
19,000,000 PHH Corporation, 5.656%, due 05/26/98 (a).................................... 19,000,000
11,000,000 Merrill Lynch & Company, 6.155%, due 06/02/98................................ 11,000,000
39,000,000 Household Finance Corporation, 5.710%, due 06/03/98 (a)...................... 39,000,000
14,000,000 Bank Of America NA, 6.050%, due 06/10/98..................................... 13,998,132
31,000,000 Societe Generale New York, 5.630%, due 06/16/98 (a).......................... 30,992,175
25,000,000 Merrill Lynch & Company, 5.680%, due 06/22/98 (a)............................ 25,002,480
15,000,000 Bayerische Landesbank New York, 5.526%, due 06/26/98 (a)..................... 14,993,253
18,000,000 LaSalle National Bank, 5.980%, due 07/06/98................................. 17,996,509
25,000,000 American Honda Finance, 5.719%, due 07/08/98 (a)............................. 25,000,000
19,000,000 IBM Credit Corporation, 5.890%, due 07/20/98................................. 19,001,622
20,000,000 PHH Corporation, 5.605%, due 08/10/98 (a) a)................................. 13,009,644
10,000,000 John Deere Capital Corporation, 5.709%, due 09/14/98 (a)..................... 10,005,144
17,000,000 John Deere Capital Corporation, 5.769%, due 10/02/98 (a)..................... 17,009,818
23,000,000 Merrill Lynch & Company, 5.650%, due 10/13/98 (a)............................ 22,996,808
20,000,000 PHH Corporation, 5.596%, due 11/03/98 (a).................................... 19,996,065
33,000,000 U.S. Bancorp NA, 5.495%, due 11/16/98 (a).................................... 32,977,923
20,000,000 PHH Corporation, 5.605%, due 08/10/98 (a).................................... 19,996,956
--------------
1,038,096,524
U.S. GOVERNMENT SECURITIES - 0.87%
18,000,000 U.S. Treasury Note, 7.250%, due 02/15/98..................................... 18,073,274
--------------
18,073,274
U.S. GOVERNMENT AGENCY SECURITIES - 1.79%
37,000,000 Federal Farm Credit Bank, 5.530%, due 02/03/98 (a)........................... 36,996,356
--------------
36,996,356
--------------
TOTAL INVESTMENTS - 99.3% ............. 2,052,489,695
OTHER ASSETS LESS LIABILITIES - 0.7% .. 14,789,543
--------------
NET ASSETS - 100.0% .................. $2,067,279,238
==============
</TABLE>
(a) Variable rate securities. The rates shown are the current rates as of
October 31, 1997.
See accompanying notes.
12
<PAGE> 13
OLDE CUSTODIAN FUND
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1)...................................................... $2,052,489,695
Interest receivable......................................................................... 15,555,287
Prepaid expenses............................................................................ 111,676
--------------
TOTAL ASSETS ............................................................................ 2,068,156,658
LIABILITIES:
Dividends payable (Note 2).................................................................. 309,796
Accrued expenses............................................................................ 200,049
Payable to OLDE Asset Management, Inc....................................................... 367,575
--------------
TOTAL LIABILITIES ....................................................................... 877,420
--------------
NET ASSETS applicable to 2,067,279,238 outstanding shares,
unlimited number of shares authorized, $0.01 par value..................................... $2,067,279,238
==============
NET ASSET VALUE, offering and redemption price per share
on 2,067,279,238 shares of beneficial interest outstanding................................. $1.00
==============
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
INTEREST INCOME (Note 1):..................................................................... $ 113,481,543
EXPENSES:
Management fees............................................................................ 3,011,993
Transfer agent fees........................................................................ 513,866
Custodian fees............................................................................. 108,517
Professional fees.......................................................................... 18,474
Accounting fees............................................................................ 16,500
Printing and postage....................................................................... 14,600
Trustee fees............................................................................... 30,180
Insurance.................................................................................. 21,544
Amortization of organizational costs....................................................... 2,010
Registration costs......................................................................... 334,826
12b-1 distribution costs................................................................... 1,214,676
--------------
TOTAL EXPENSES ............................................................................ 5,287,186
Expenses waived and reimbursed............................................................. (2,546,958)
--------------
NET EXPENSES .............................................................................. 2,740,228
--------------
NET INVESTMENT INCOME ....................................................................... $ 110,741,315
==============
</TABLE>
See accompanying notes.
13
<PAGE> 14
OLDE CUSTODIAN FUND
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1997 1996
------ ---------
<S> <C> <C>
OPERATIONS:
Net investment income............................................. $ 110,741,315 $ 83,074,708
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income............................................. (110,741,315) (83,074,708)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares..................................... 3,644,008,369 3,243,478,670
Net asset value of shares issued in reinvestment of dividends..... 109,145,684 79,753,027
-------------- ---------------
3,753,154,053 3,323,231,697
Cost of shares redeemed.......................................... (3,511,354,911) (2,669,874,893)
-------------- ---------------
Net increase in shareholders' equity from share transactions..... 241,799,142 653,356,804
-------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY .............................. 241,799,142 653,356,804
SHAREHOLDERS' EQUITY:
At beginning of year ............................................ 1,825,480,096 1,172,123,292
-------------- ---------------
At end of year................................................... $2,067,279,238 $ 1,825,480,096
============== ===============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1997 1996 1995 1994 1993
---------- ---------- --------- --------- --------
<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.......................... 0.0552 0.0560 0.0598 0.0401 0.0342
DISTRIBUTIONS: ...................................
Dividends from net investment income........... (0.0552) (0.0560) (0.0598) (0.0401) (0.0342)
---------- ---------- --------- --------- --------
NET ASSET VALUE, END OF YEAR ..................... $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========= ========= ========
Total return (annualized) ..................... +5.52% +5.60% +5.98% +4.01% +3.42%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)...... $2,067,279 $1,825,480 $1,172,123 $392,304 $170,630
Ratio of expenses to average net assets........ 14% - - - -
Ratio of net investment income
to average net assets.......................... 5.52% 5.60% 5.98% 4.01% 3.42%
</TABLE>
See accompanying notes.
14
<PAGE> 15
OLDE CUSTODIAN FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1997
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.
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.
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%
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 beneficial account per annum. 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, 1997. For the year ended October 31,
1997, the Fund made no direct payments to its officers and affiliated trustees
and incurred trustee fees of $41,130 to unaffiliated trustees.
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 1999, 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 year ended October 31, 1997, the Series incurred
total expenses of $5,287,186. The Adviser waived fees of $1,692,203. OLDE
Discount waived transfer agency fees of $80,026 and 12b-1 expenses of $610,515
and $164,214 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:
OLDE Money Market Series 0.25%
OLDE Premium Money Market Series 0.15%
OLDE Premium Plus Money Market Series 0.15%
For the year ended October 31, 1997, the annualized percentage rate of 12b-1
expense was .06% for OLDE Money Market Series, .07% for OLDE Premium Money
Market Series and .06% for OLDE Premium Plus Money Market Series.
6. INVESTMENT SECURITIES TRANSACTIONS
Investment securities transactions for the period ended October 31, 1997 are
as follows:
OLDE Money Market Series:
Purchases: $ 2,336,745,415
Sales (including maturities): $ 2,317,961,516
OLDE Premium Money Market Series:
Purchases: $ 1,683,130,502
Sales (including maturities): $ 1,634,519,075
OLDE Premium Plus Money Market Series:
Purchases: $ 10,432,581,191
Sales (including maturities): $ 10,239,474,172
7. BANK LINE OF CREDIT
At October 31, 1997 a secured line of credit in the amount of $10,000,000 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, 1997.
--------------------------------------
[ERNST AND YOUNG LLP LOGO]
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, 1997, 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, 1997, 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, 1997, 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.
/s/ ERNST & YOUNG
- ------------------------
Detroit, Michigan
November 26, 1997
16
