<PAGE> 1
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.
OLDE
CUSTODIAN FUND
SEMI - ANNUAL REPORT
APRIL 30, 1998
(UNAUDITED)
OLDE MONEY
MARKET SERIES
OLDE PREMIUM
MONEY MARKET SERIES
OLDE PREMIUM PLUS
MONEY MARKET SERIES
1268 - 6/98
GRAPHIC OF BUILDING
<PAGE> 2
TOP LOGO
OLDE CUSTODIAN FUND
May 27, 1998
Dear Shareholder,
The OLDE Custodian Fund is pleased to present the Semi-Annual Report for the
period ending April 30, 1998. 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 all three Series.
The U.S. economy is experiencing near unprecedented growth as it enters its
eighth year of expansion. Robust financial markets and mild inflation have
lifted investors' confidence, producing a wealth effect that has supported gains
in economic activity. The common late cycle manifestations, such as
manufacturing bottlenecks and full employment wage pressures, have yet to arise,
leaving a harmful level of inflation as a danger more feared than imminent.
Turmoil in Asian financial and economic markets continues to act as an external
antidote to inflation in the U.S. economy, with increased exports of cheap
foreign goods to the U.S. reducing the pricing flexibility of U.S.
manufacturers.
This environment has permitted the Federal Reserve to remain on the sidelines
since March 25, 1997. Consequently, short term interest rates have moved within
a relatively narrow range and have depended on market perception of the Fed's
likelihood to increase rates.
In this environment, the Advisor has attempted to avail itself of higher
interest rates when the opportunities have arisen. However, a relatively flat
short term yield curve has limited the yield benefits of a longer weighted
average maturity. While value continues to exist in adjustable rate securities,
lack of supply and increased demand have reduced the yield advantage of these
securities. These factors have caused the Funds' yields to move in a relatively
narrow range.
As always, be assured the Adviser will aim to provide investors with attractive
yields, while minimizing risk.
Sincerely,
OLDE CUSTODIAN FUND
LISA FILDES
Lisa S. Fildes
President
TOP LOGO
2
<PAGE> 3
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 36.48%
$ 7,805,000 G.E. Capital Services, 5.53%, due 05/04/98.................. $ 7,801,403
6,470,000 G.E. Company, 5.54%, due 05/05/98........................... 6,466,017
7,600,000 American General Finance, 5.55%, due 05/06/98............... 7,594,142
8,080,000 Chrysler Financial Corporation, 5.54%, due 05/07/98......... 8,072,539
9,910,000 Ford Motor Credit, 5.52%, due 05/08/98...................... 9,899,363
8,210,000 Aetna Services Incorporated, 5.61%, due 05/11/98............ 8,197,206
4,595,000 Goldman Sachs Group, L.P., 5.51%, due 05/13/98.............. 4,586,561
3,360,000 Sears Acceptance Corporation, 5.52%, due 05/13/98........... 3,353,818
8,475,000 Associates Corporation NA, 5.51%, due 05/15/98.............. 8,456,840
6,740,000 G.E. Company, 5.51%, due 05/19/98........................... 6,721,431
7,235,000 G.E. Capital Corporation, 5.52%, due 05/20/98............... 7,213,922
10,860,000 Prudential Funding, 5.51%, due 05/22/98..................... 10,825,094
6,135,000 Goldman Sachs Group, L.P., 5.49%, due 05/27/98.............. 6,110,675
8,265,000 G.E. Capital Corporation, 5.50%, due 05/29/98............... 8,229,644
6,000,000 Chrysler Financial Corporation, 5.51%, due 06/04/98......... 5,968,777
5,385,000 Chrysler Financial Corporation, 5.51%, due 06/05/98......... 5,356,153
7,050,000 G.E. Company, 5.50%, due 06/08/98........................... 7,009,071
10,720,000 American General Finance, 5.52%, due 06/12/98............... 10,650,963
6,000,000 J.P. Morgan & Company, 5.64%, due 06/15/98.................. 5,957,700
7,000,000 Sears Acceptance Corporation, 5.54%, due 06/16/98........... 6,950,448
5,285,000 G.E. Capital Services, 5.53%, due 06/17/98.................. 5,246,844
8,255,000 Siemens Capital Corporation, 5.36%, due 07/16/98............ 8,161,590
6,000,000 G.E. Capital Corporation, 5.61%, due 07/17/98 (a)........... 6,000,000
------------
164,830,201
YANKEE COMMERCIAL PAPER - 11.94%
7,475,000 Hitachi Credit America, 5.53%, due 05/01/98................. 7,475,000
6,500,000 Toyota Motor Credit Of Puerto Rico, 5.54%, due 05/05/98..... 6,495,999
9,510,000 Fuji Photo Film Finance USA , 5.52%, due 05/21/98........... 9,480,836
10,000,000 BMW US Capital Corporation, 5.52%, due 06/01/98............. 9,952,467
7,915,000 Statoil, 5.55%, due 06/02/98................................ 7,875,953
7,435,000 Ford Credit Europe, 5.50%, due 06/09/98..................... 7,390,700
5,300,000 Hitachi Credit America, 5.53%, due 06/11/98................. 5,266,620
------------
53,937,575
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 51.28%
$ 8,000,000 Credit Suisse First Boston, 5.42%, due 05/12/98 (a)......... $ 8,000,000
5,000,000 American Express Centurion Bank, 5.63%, due 05/12/98 (a).... 5,000,029
6,000,000 Paccar Financial Corporation, 5.57%, due 05/14/98 (a)....... 5,999,918
9,000,000 Morgan Stanley Dean Witter Discover, 5.63%, due 05/18/98
(a)......................................................... 9,000,129
6,000,000 Ford Motor Credit, 6.04%, due 05/26/98 (a).................. 6,001,724
4,000,000 PHH Corporation, 5.66%, due 05/26/98 (a).................... 4,000,000
13,500,000 Household Finance Corporation, 5.66%, due 05/28/98 (a)...... 13,500,464
4,000,000 Merrill Lynch & Company, 6.16%, due 06/02/98................ 4,000,000
8,000,000 Household Finance Corporation, 5.50%, due 06/03/98 (a)...... 8,000,000
7,000,000 Bank Of America NA, 6.05%, due 06/10/98..................... 6,999,832
5,000,000 LaSalle National Bank, 5.98%, due 07/06/98.................. 4,999,741
5,000,000 Sears Overseas Financial N.V., 5.65%, due 07/12/98.......... 4,943,952
4,000,000 IBM Credit Corporation, 5.89%, due 07/20/98................. 4,000,104
4,000,000 PHH Corporation, 5.64%, due 08/10/98 (a).................... 3,999,782
9,000,000 Dean Witter Discover & Company, 5.70%, due 08/17/98 (a)..... 9,002,495
5,000,000 John Deere Capital Corporation, 5.68%, due 09/14/98 (a)..... 5,001,104
8,000,000 Key Bank NA, 5.53%, due 09/23/98 (a)........................ 7,997,069
3,351,000 Daimler-Benz NA Corporation, 8.00%, due 10/01/98............ 3,376,513
5,870,000 Morgan Guaranty Trust, 6.00%, due 10/01/98.................. 5,876,234
5,000,000 John Deere Capital Corporation, 5.71%, due 10/02/98 (a)..... 5,001,328
12,000,000 Merrill Lynch & Company, 5.44%, due 10/13/98 (a)............ 11,999,206
5,000,000 PHH Corporation, 5.63%, due 11/03/98 (a).................... 4,999,501
10,000,000 US Bancorp NA, 5.53%, due 11/16/98 (a)...................... 9,996,497
6,000,000 Nationsbank Texas NA, 5.78%, due 12/18/98 (a)............... 6,006,077
5,000,000 Salomon Smith Barney Holdings Inc., 5.68%, due 01/14/99
(a)......................................................... 5,000,000
10,000,000 Abbey National Treasury, 5.54%, due 01/20/99................ 9,987,507
5,000,000 Key Bank N.A., 5.35%, due 01/29/99 (a)...................... 4,998,175
7,000,000 Toyota Motor Credit, 5.56%, due 01/29/99.................... 6,997,979
4,000,000 Abbey National Treasury, 5.50%, due 02/02/99................ 3,996,215
4,000,000 Merrill Lynch & Company, 5.61%, due 02/26/99 (a)............ 4,000,000
7,000,000 J.P. Morgan & Company, 5.75%, due 03/10/99.................. 7,000,000
6,000,000 National City Bank Indiana, 5.54%, due 04/20/99 (a)......... 5,996,568
10,000,000 American Express Centurion Bank, 5.60%, due 04/26/99 (a).... 10,000,000
6,000,000 American Honda Finance Corporation, 5.67%, due 04/28/99
(a)......................................................... 6,000,000
10,000,000 General Motors Acceptance Corporation, 5.48%, due 04/30/99
(a)......................................................... 10,001,315
------------
231,679,458
------------
TOTAL INVESTMENTS -
99.7% ................ 450,447,234
OTHER ASSETS LESS
LIABILITIES - 0.3% ... 1,351,343
------------
NET ASSETS - 100.0%
...................... $451,798,577
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
April 30, 1998.
See accompanying notes.
4
<PAGE> 5
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $450,447,234
Interest receivable....................................... 1,903,182
Prepaid expenses.......................................... 68,429
------------
TOTAL ASSETS............................................ 452,418,845
LIABILITIES:
Dividends payable (Note 2)................................ 405,038
Accrued expenses.......................................... 96,845
Payable to OLDE Asset Management, Inc. ................... 118,385
------------
TOTAL LIABILITIES....................................... 620,268
------------
NET ASSETS applicable to 451,798,577 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $451,798,577
============
NET ASSET VALUE, offering and redemption price per share on
451,798,577 shares of beneficial interest outstanding..... $1.00
============
</TABLE>
OLDE MONEY MARKET SERIES
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 11,805,730
EXPENSES:
Management fees........................................... 1,030,187
Transfer agent fees....................................... 697,936
Custodian fees............................................ 10,057
Professional fees......................................... 9,944
Accounting fees........................................... 8,250
Printing and postage...................................... 27,150
Trustee fees.............................................. 3,620
Insurance................................................. 4,601
Registration costs........................................ 52,900
12b-1 distribution costs.................................. 9,692
------------
TOTAL EXPENSES.......................................... 1,854,337
------------
NET INVESTMENT INCOME....................................... $ 9,951,393
============
</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, 1998 OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 9,951,393 $ 19,212,934
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (9,951,393) (19,212,934)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 916,123,151 1,744,307,612
Net asset value of shares issued in reinvestment of
dividends............................................... 9,103,451 18,397,929
------------- ---------------
925,226,602 1,762,705,541
Cost of shares redeemed................................... (876,595,412) (1,732,685,036)
------------- ---------------
Net increase in shareholders' equity from share
transactions............................................ 48,631,190 30,020,505
------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 48,631,190 30,020,505
SHAREHOLDERS' EQUITY:
At beginning of period.................................... 403,167,387 373,146,882
------------- ---------------
At end of period.......................................... $ 451,798,577 $ 403,167,387
============= ===============
</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, 1998 OCT. 31, 1997 OCT. 31, 1996 OCT. 31, 1995 OCT. 31, 1994
-------------- ------------- ------------- ------------- -------------
<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...... 0.0240 0.0470 0.0460 0.0487 0.0293
DISTRIBUTIONS:
Dividends from net
investment income........ (0.0240) (0.0470) (0.0460) (0.0487) (0.0293)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return
(annualized)............. 4.83% 4.70% 4.60% 4.87% 2.93%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted).......... $451,798 $403,167 $373,147 $313,232 $209,288
Ratio of expenses to
average net assets....... 0.90% 0.95% 1.00% 1.07% 1.05%
Ratio of net investment
income to average net
assets................... 4.83% 4.70% 4.60% 4.87% 2.93%
</TABLE>
See accompanying notes.
6
<PAGE> 7
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 31.95%
$ 7,025,000 G.E. Capital Services, 5.54%, due 05/01/98.................. $ 7,025,000
7,820,000 G.E. Company, 5.54%, due 05/04/98........................... 7,816,390
8,230,000 American General Finance, 5.55%, due 05/05/98............... 8,224,925
7,000,000 Chrysler Financial Corporation, 5.54%, due 05/06/98......... 6,994,614
6,755,000 Associates Corporation NA, 5.53%, due 05/07/98.............. 6,748,774
5,750,000 Aetna Services Incorporated, 5.58% due 05/08/98............. 5,743,761
6,000,000 Prudential Funding, 5.52%, due 05/11/98..................... 5,990,800
5,000,000 Bear Stearns Company, 5.52%, due 05/13/98................... 4,990,800
4,960,000 G.E. Company, 5.51%, due 05/19/98........................... 4,946,335
6,000,000 Bear Stearns Company, 5.52%, due 05/20/98................... 5,982,520
6,815,000 Deere & Company, 5.49%, due 05/27/98........................ 6,787,979
5,960,000 G.E. Capital Corporation, 5.51%, due 05/29/98............... 5,934,458
5,785,000 G.E. Capital Services, 5.51%, due 06/04/98.................. 5,754,896
4,055,000 Norwest Financial Incorporated, 5.52%, due 06/05/98......... 4,033,238
5,050,000 Sears Acceptance Corporation, 5.54%, due 06/08/98........... 5,020,469
6,985,000 American General Finance, 5.53%, due 06/12/98............... 6,939,935
2,000,000 Siemens Capital Corporation, 5.36%, due 07/16/98............ 1,977,369
4,000,000 G.E. Capital Corporation, 5.61%, due 07/17/98 (a)........... 4,000,000
------------
104,912,263
YANKEE COMMERCIAL PAPER - 7.94%
5,665,000 BMW US Capital Corporation, 5.50%, due 05/15/98............. 5,652,883
8,375,000 Fuji Photo Film Finance USA , 5.52%, due 05/21/98........... 8,349,317
4,295,000 BMW US Capital Corporation, 5.52%, due 06/01/98............. 4,274,584
7,875,000 Hitachi Credit America, 5.53%, due 07/02/98................. 7,799,999
------------
26,076,783
BANK OBLIGATIONS - 12.94%
4,000,000 Deutsche Bank NY, 6.16%, due 05/22/98....................... 3,999,933
3,000,000 Rabobank Nederland NY, 5.41%, due 06/18/98.................. 2,978,360
10,000,000 Bayerische Landesbank NY, 5.53%, due 06/26/98 (a)........... 9,998,733
6,000,000 Credit Suisse First Boston, 5.69%, due 10/22/98 (a)......... 6,000,000
4,000,000 Bayerische Landesbank NY, 5.81%, due 12/17/98............... 3,997,589
3,500,000 Credit Suisse First Boston, 5.60%, due 02/11/99............. 3,500,000
5,000,000 Deutsche Bank NY, 5.70%, due 03/05/99....................... 4,997,979
5,000,000 Credit Suisse First Boston, 5.69%, due 04/19/99 (a)......... 5,000,000
2,000,000 Rabobank Nederland NY, 5.74%, due 04/28/99.................. 1,998,955
------------
42,471,549
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 46.77%
$ 2,000,000 Credit Suisse First Boston, 5.42%, due 05/12/98 (a)......... $ 2,000,000
3,000,000 American Express Centurion Bank, 5.63%, due 05/12/98 (a).... 3,000,017
4,000,000 Paccar Financial Corporation, 5.57%, due 05/14/98 (a)....... 3,999,944
4,000,000 Morgan Stanley Dean Witter Discover, 5.63%, due 05/18/98
(a)......................................................... 4,000,057
2,000,000 PHH Corporation, 5.66%, due 05/26/98 (a).................... 2,000,000
4,000,000 Ford Motor Credit, 6.04%, 05/26/98 (a)...................... 4,001,149
12,500,000 Household Finance Corporation, 5.66%, due 05/28/98 (a)...... 12,500,430
5,000,000 Merrill Lynch & Company, 6.16%, due 06/02/98................ 5,000,000
3,000,000 Household Finance Corporation, 5.50%, due 06/03/98 (a)...... 3,000,000
4,000,000 Bank Of America NA, 6.05%, due 06/10/98..................... 3,999,902
9,000,000 Societe Generale NY, 5.42%, due 06/16/98 (a)................ 8,999,540
2,000,000 LaSalle National Bank, 5.98%, due 07/06/98.................. 1,999,896
2,000,000 IBM Credit Corporation, 5.89%, due 07/20/98................. 2,000,053
6,000,000 PHH Corporation, 5.64%, due 08/10/98 (a).................... 5,999,673
8,000,000 Dean Witter Discover & Company, 5.70%, due 08/17/98 (a)..... 8,002,217
5,000,000 Ford Motor Credit, 5.89%, due 08/26/98...................... 5,004,713
3,000,000 John Deere Capital Corporation, 5.68%, due 09/14/98 (a)..... 3,000,662
6,000,000 Key Bank NA, 5.53%, due 09/23/98 (a)........................ 5,997,802
3,000,000 John Deere Capital Corporation, 5.71%, due 10/02/98 (a)..... 3,000,797
7,000,000 Merrill Lynch & Company, 5.44%, due 10/13/98 (a)............ 6,999,537
7,000,000 US Bancorp NA, 5.53%, due 11/16/98 (a)...................... 6,997,547
4,000,000 Nationsbank Texas NA, 5.78%, due 12/18/98 (a)............... 4,004,051
3,000,000 Salomon Smith Barney Holdings Inc., 5.68%, due 01/14/99
(a)......................................................... 3,000,000
5,000,000 Abbey National Treasury, 5.54%, due 01/20/99................ 4,994,646
3,000,000 Key Bank N.A., 5.35%, due 01/29/99 (a)...................... 2,998,905
5,000,000 Toyota Motor Credit, 5.56%, due 01/29/99.................... 4,998,557
5,000,000 American Express Credit, 7.38%, due 02/01/99................ 5,058,836
3,000,000 Abbey National Treasury, 5.50%, due 02/02/99................ 2,997,161
3,000,000 Merrill Lynch & Company, 5.61%, due 02/26/99 (a)............ 3,000,000
3,000,000 J.P. Morgan & Company, 5.75%, due 03/10/99.................. 3,000,000
4,000,000 National City Bank Indiana, 5.54%, due 04/20/99 (a)......... 3,997,712
5,000,000 American Express Centurion Bank, 5.60%, due 04/26/99 (a).... 5,000,000
4,000,000 American Honda Finance Corporation, 5.67%, due 04/28/99
(a)......................................................... 4,000,000
5,000,000 General Motors Acceptance Corporation, 5.48%, due 04/30/99
(a)......................................................... 5,000,658
------------
153,554,462
------------
TOTAL INVESTMENTS -
99.6% ................ 327,015,057
OTHER ASSETS LESS
LIABILITIES - 0.4% ... 1,237,915
------------
NET ASSETS - 100.0%... $328,252,972
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
April 30, 1998.
See accompanying notes.
8
<PAGE> 9
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $327,015,057
Cash...................................................... 1,603
Interest receivable....................................... 1,646,260
Prepaid expenses.......................................... 68,951
------------
TOTAL ASSETS............................................ 328,731,871
LIABILITIES:
Dividends payable (Note 2)................................ 325,722
Accrued expenses.......................................... 41,961
Payable to OLDE Asset Management, Inc. ................... 111,216
------------
TOTAL LIABILITIES....................................... 478,899
------------
NET ASSETS applicable to 328,252,972 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $328,252,972
============
NET ASSET VALUE, offering and redemption price per share on
328,252,972 shares of beneficial interest outstanding..... $1.00
============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 8,861,178
EXPENSES:
Management fees........................................... 462,153
Transfer agent fees....................................... 215,532
Custodian fees............................................ 8,377
Professional fees......................................... 9,944
Accounting fees........................................... 8,250
Printing and postage...................................... 5,430
Trustee fees.............................................. 1,810
Insurance................................................. 4,151
Registration costs........................................ 47,253
12b-1 distribution costs.................................. 8,560
------------
TOTAL EXPENSES.......................................... 771,460
------------
NET INVESTMENT INCOME....................................... $ 8,089,718
============
</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, 1998 OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 8,089,718 $ 13,741,064
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (8,089,718) (13,741,064)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 484,937,312 864,458,150
Net asset value of shares issued in reinvestment of
dividends............................................... 7,472,345 13,233,279
------------- -------------
492,409,657 877,691,429
Cost of shares redeemed................................... (454,119,623) (821,690,883)
------------- -------------
Net increase in shareholders' equity from share
transactions............................................ 38,290,034 56,000,546
------------- -------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 38,290,034 56,000,546
SHAREHOLDERS' EQUITY:
At beginning of period.................................... 289,962,938 233,962,392
------------- -------------
At end of period.......................................... $ 328,252,972 $ 289,962,938
============= =============
</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, 1998 OCT. 31, 1997 OCT. 31, 1996 OCT. 31, 1995 OCT. 31, 1994
-------------- ------------- ------------- ------------- -------------
<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...... 0.0261 0.0508 0.0490 0.0524 0.0339
DISTRIBUTIONS:
Dividends from net
investment income........ (0.0261) (0.0508) (0.0490) (0.0524) (0.0339)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return(annualized)... 5.25% 5.08% 4.90% 5.24% 3.39%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted).......... $328,253 $289,963 $233,962 $178,203 $87,946
Ratio of expenses to
average net assets....... 0.50% 0.58% 0.70% 0.70% 0.60%
Ratio of net investment
income to average net
assets................... 5.25% 5.08% 4.90% 5.24% 3.39%
</TABLE>
See accompanying notes.
10
<PAGE> 11
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 40.62%
$36,030,000 Sears Acceptance Corporation, 5.55%, due 05/01/98........... $ 36,030,000
50,535,000 G.E. Capital Services, 5.53%, due 05/04/98.................. 50,511,712
31,375,000 G.E. Capital Corporation, 5.54%, due 05/05/98............... 31,355,687
40,000,000 Chrysler Financial Corporation, 5.54%, due 05/06/98......... 39,969,222
50,000,000 Ford Motor Credit, 5.52%, due 05/07/98...................... 49,954,000
39,345,000 Prudential Funding, 5.51%, due 05/08/98..................... 39,302,846
58,100,000 Prudential Funding, 5.52%, due 05/11/98..................... 58,010,913
56,825,000 Goldman Sachs Group, L.P., 5.51%, due 05/13/98.............. 56,720,631
45,315,000 Associates Corporation NA, 5.51%, due 05/15/98.............. 45,217,900
45,000,000 General Motors Acceptance Corporation, 5.55%, due
05/15/98.................................................... 44,902,875
35,000,000 G.E. Company, 5.51%, due 05/19/98........................... 34,903,575
37,985,000 G.E. Company, 5.51%, due 05/20/98........................... 37,874,538
30,000,000 American Honda Finance Corporation, 5.53%, due 05/21/98..... 29,907,833
50,000,000 Chrysler Financial Corporation, 5.51%, due 05/27/98......... 49,801,028
48,340,000 Deere & Company, 5.49%, due 05/29/98........................ 48,133,588
21,475,000 Sears Acceptance Corporation, 5.54%, due 06/02/98........... 21,369,248
44,590,000 Deere & Company, 5.50%, due 06/04/98........................ 44,358,380
41,685,000 G.E. Capital Corporation, 5.51%, due 06/05/98............... 41,461,696
19,895,000 Norwest Financial Incorporated, 5.52%, due 06/09/98......... 19,776,028
27,790,000 American General Finance, 5.53% due 06/12/98................ 27,610,708
19,000,000 J.P. Morgan & Company, 5.64%, due 06/15/98.................. 18,866,050
39,745,000 Siemens Capital Corporation, 5.36%, due 07/16/98............ 39,295,264
30,000,000 G.E. Capital Corporation, 5.61%, due 07/17/98 (a)........... 30,000,000
--------------
895,333,722
YANKEE COMMERCIAL PAPER - 7.50%
15,900,000 Toyota Motor Credit Of Puerto Rico, 5.55%, due 05/01/98..... 15,900,000
12,115,000 Fuji Photo Film Finance USA, 5.52%, due 05/21/98............ 12,077,847
20,000,000 BMW US Capital Corporation, 5.50%, due 05/22/98............. 19,935,833
38,140,000 Statoil, 5.51%, due 05/27/98................................ 37,988,224
30,252,000 BMW US Capital Corporation, 5.52%, due 06/01/98............. 30,108,202
27,590,000 Daimler-Benz NA Corporation, 5.50%, due 06/08/98............ 27,429,825
22,125,000 Hitachi Credit America, 5.53%, due 07/02/98................. 21,914,284
--------------
165,354,215
BANK OBLIGATIONS - 9.78%
16,000,000 Deutsche Bank NY, 6.16%, due 05/22/98....................... 15,999,737
45,000,000 Bayerische Landesbank NY, 5.53%, due 06/26/98 (a)........... 44,994,605
34,000,000 Credit Suisse First Boston, 5.69%, due 10/22/98 (a)......... 34,000,000
46,000,000 Bayerische Landesbank NY, 5.81%, due 12/17/98............... 45,972,272
16,500,000 Credit Suisse First Boston, 5.60%, due 02/11/99............. 16,500,000
20,000,000 Deutsche Bank NY, 5.70%, due 03/05/99....................... 19,991,915
15,000,000 Deutsche Bank NY, 5.70%, due 03/30/99....................... 14,988,915
23,000,000 Rabobank Nederland NY, 5.74%, due 04/28/99.................. 22,987,987
--------------
215,435,431
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 41.05%
$17,000,000 American Express Centurion Bank, 5.63%, due 05/12/98 (a).... $ 17,000,099
30,000,000 Credit Suisse First Boston, 5.42%, due 05/12/98 (a)......... 30,000,000
30,000,000 Paccar Financial Corporation, 5.57%, due 05/14/98 (a)....... 29,999,584
40,000,000 Morgan Stanley Dean Witter Discover, 5.63%, due 05/18/98
(a)......................................................... 40,000,573
20,000,000 Morgan Stanley Dean Witter Discover, 5.95%, due 05/18/98
(a)......................................................... 20,002,980
10,000,000 PHH Corporation, 5.65%, due 05/26/98 (a).................... 10,000,125
19,000,000 PHH Corporation, 5.66%, due 05/26/98 (a).................... 19,000,000
44,000,000 Household Finance Corporation, 5.66%, due 05/28/98 (a)...... 44,001,514
11,000,000 Merrill Lynch & Company, 6.17%, due 06/02/98................ 11,000,000
39,000,000 Household Finance Corporation, 5.50%, due 06/03/98 (a)...... 39,000,000
14,000,000 Bank Of America NA, 6.07%, due 06/10/98..................... 13,999,662
11,750,000 Chrysler Financial Corporation, 6.50%, due 06/15/98......... 11,759,149
31,000,000 Societe Generale NY, 5.42%, due 06/16/98 (a)................ 30,998,414
25,000,000 Merrill Lynch & Company, 5.47%, due 06/22/98 (a)............ 25,000,554
18,000,000 LaSalle National Bank, 5.98%, due 07/06/98.................. 17,999,068
25,000,000 American Honda Finance Corporation, 5.67%, due 07/08/98
(a)......................................................... 25,000,000
19,000,000 IBM Credit Corporation, 5.89% ,due 07/20/98................. 19,000,497
20,000,000 PHH Corporation, 5.64%, due 08/10/98 (a).................... 19,998,910
13,000,000 Dean Witter Discover & Company, 5.70%, due 08/17/98 (a)..... 13,003,604
11,000,000 Associates Corporation NA, 6.50%, due 09/09/98.............. 11,035,925
10,000,000 John Deere Capital Corporation, 5.68%, due 09/14/98 (a)..... 10,002,206
25,000,000 Dean Witter Discover & Company, 5.69%, due 09/16/98 (a)..... 25,007,491
36,000,000 Key Bank NA, 5.53%, due 09/23/98 (a)........................ 35,986,813
17,000,000 John Deere Capital Corporation, 5.71%, due 10/02/98 (a)..... 17,004,513
23,000,000 Merrill Lynch & Company, 5.44%, due 10/13/98 (a)............ 22,998,479
20,000,000 PHH Corporation, 5.63%, due 11/03/98 (a).................... 19,998,005
33,000,000 US Bancorp NA, 5.53%, due 11/16/98 (a)...................... 32,988,439
15,000,000 Nationsbank Texas NA, 5.78%, due 12/18/98 (a)............... 15,015,192
17,000,000 Salomon Smith Barney Holdings Inc., 5.68%, due 01/14/99
(a)......................................................... 17,000,000
22,000,000 Abbey National Treasury, 5.54%, due 01/20/99................ 21,972,280
38,000,000 Toyota Motor Credit, 5.56%, due 01/29/99.................... 37,989,030
17,000,000 Key Bank N.A., 5.35%, due 01/29/99 (a)...................... 16,993,795
18,000,000 Abbey National Treasury, 5.50%, due 02/02/99................ 17,982,967
18,000,000 Merrill Lynch & Company, 5.61%, due 02/26/99 (a)............ 18,000,000
15,000,000 J.P. Morgan & Company, 5.75%, due 03/10/99.................. 15,000,000
13,000,000 Merrill Lynch & Company, 5.85%, due 04/06/99 (a)............ 13,025,765
20,000,000 Credit Suisse First Boston, 5.69%, due 04/19/99 (a)......... 20,000,000
40,000,000 National City Bank Indiana, 5.54%, due 04/20/99 (a)......... 39,977,123
35,000,000 American Express Centurion Bank, 5.60%, due 04/26/99 (a).... 35,000,000
25,000,000 American Honda Finance Corporation, 5.67%, due 04/28/99
(a)......................................................... 25,000,000
--------------
904,742,756
US GOVERNMENT AGENCY - 0.75%
16,450,000 Federal Home Loan Bank, 5.53%, due 02/26/99................. 16,445,761
--------------
16,445,761
--------------
TOTAL INVESTMENTS -
99.7% ................ 2,197,311,885
OTHER ASSETS LESS
LIABILITIES - 0.3% ... 6,301,015
--------------
NET ASSETS - 100.0%
...................... $2,203,612,900
==============
</TABLE>
(a) Variable rate securities. The rates shown are the current rates as of April
30, 1998.
See accompanying notes.
12
<PAGE> 13
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $2,197,311,885
Cash...................................................... 17
Interest receivable....................................... 9,026,496
Prepaid expenses.......................................... 150,321
Receivable from OLDE Asset Management, Inc................ 307,251
--------------
TOTAL ASSETS............................................ 2,206,795,970
LIABILITIES:
Dividends payable (Note 2)................................ 2,307,198
Accrued expenses.......................................... 875,872
--------------
TOTAL LIABILITIES....................................... 3,183,070
--------------
NET ASSETS applicable to 2,203,612,900 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $2,203,612,900
==============
NET ASSET VALUE, offering and redemption price per share on
2,203,612,900 shares of beneficial interest outstanding... $1.00
==============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 60,548,928
EXPENSES:
Management fees........................................... 1,584,002
Transfer agent fees....................................... 264,537
Custodian fees............................................ 46,132
Professional fees......................................... 10,849
Accounting fees........................................... 8,250
Printing and postage...................................... 7,240
Trustee fees.............................................. 18,100
Insurance................................................. 11,895
Registration costs........................................ 107,888
12b-1 distribution costs.................................. 675,362
--------------
TOTAL EXPENSES.......................................... 2,734,255
Expenses waived and reimbursed.............................. (622,252)
--------------
NET EXPENSES.............................................. 2,112,003
--------------
NET INVESTMENT INCOME....................................... $ 58,436,925
==============
</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, 1998 OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 58,436,925 $ 110,741,315
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (58,436,925) (110,741,315)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 2,017,528,630 3,644,008,369
Net asset value of shares issued in reinvestment of
dividends............................................... 54,853,159 109,145,684
-------------- ---------------
2,072,381,789 3,753,154,053
Cost of shares redeemed................................... (1,936,048,127) (3,511,354,911)
-------------- ---------------
Net increase in shareholders' equity from share
transactions............................................ 136,333,662 241,799,142
-------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 136,333,662 241,799,142
SHAREHOLDERS' EQUITY:
At beginning of period.................................... 2,067,279,238 1,825,480,096
-------------- ---------------
At end of period.......................................... $2,203,612,900 $ 2,067,279,238
============== ===============
</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, 1998 OCT. 31, 1997 OCT. 31, 1996 OCT. 31, 1995 OCT. 31, 1994
-------------- ------------- ------------- ------------- -------------
<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...... 0.0275 0.0552 0.0560 0.0598 0.0401
DISTRIBUTIONS:
Dividends from net
investment income........ (0.0275) (0.0552) (0.0560) (0.0598) (0.0401)
---------- ---------- ---------- ---------- --------
NET ASSET VALUE, END OF
PERIOD..................... $ 1.00 $ 1.00 $ $1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========
Total return
(annualized)............. 5.53% 5.52% 5.60% 5.98% 4.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted).......... $2,203,613 $2,067,279 $1,825,480 $1,172,123 $392,304
Ratio of expenses to
average net assets....... 0.20% 0.14% -- -- --
Ratio of net investment
income to average net
assets................... 5.53% 5.52% 5.60% 5.98% 4.01%
</TABLE>
See accompanying notes.
14
<PAGE> 15
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998
(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.
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.
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. TRANSACTIONS WITH AFFILIATES
The Fund has an Investment Advisory Agreement with OLDE Asset Management, Inc.
(the Adviser). Under the current agreement, the Adviser receives a monthly
management fee equal to an annual rate of the average daily net asset value of
each series in accordance with the following schedule:
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 Service Agreement with the Advisor. 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 six months ended April
30, 1998. For the six months ended April 30, 1998, the Fund made no direct
payments to its officers and affiliated trustees and incurred trustee fees of
$23,530 to unaffiliated trustees.
The Adviser has voluntarily agreed to waive its management fee, accounting fee,
and reimburse all other expenses of OLDE Premium Plus Money Market Series until
January 1, 1997. Effective January 1, 1997 through January 1, 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 six months ended April 30, 1998, the Series
incurred total expenses of $2,734,255. The Adviser waived fees of $4,270. OLDE
Discount waived 12b-1 expenses of $617,982.
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, 1998, the annualized percentage rate of 12b-1
expense was .01% for OLDE Money Market Series, .01% 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, 1998 are
as follows:
OLDE Money Market Series:
Purchases: $1,207,000,678
Sales (including maturities): $1,161,532,053
OLDE Premium Money Market Series:
Purchases: $958,611,444
Sales (including maturities): $923,126,351
OLDE Premium Plus Money Market Series:
Purchases: $6,247,685,325
Sales (including maturities): $6,128,118,094
7. BANK LINE OF CREDIT
At April 30, 1998 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 April 30, 1998.
16
