<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
ANNUAL REPORT
OCTOBER 31, 1998
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
December 4, 1998
Dear Shareholder,
We are pleased to present the Annual Report for the year ending October 31,
1998, for OLDE Custodian Fund. The Fund consists of OLDE Money Market Series,
OLDE Premium Money Market Series, and OLDE Premium Plus Money Market Series.
The past year has been characterized by periods of active movements in rates and
relative valuations of securities in nearly all financial markets. Investors
tended to sell holdings with perceived risks to invest in safe holdings such as
short-term money market instruments. This flight to greater safety, stability
and liquidity led to sharp rallies in U.S. Treasury securities and created both
a widening of credit spreads and increasing concern over the availability of
credit.
The U.S. Federal Reserve has tried to mitigate investors' credit concerns by
lowering the federal funds rate three times in the past two months. The Fed's
action is a signal to investors that it stands ready and willing to supply the
financial markets, banks and businesses with the liquidity necessary to keep the
economy growing. This action in our view has proven to be moderately successful,
nonetheless, credit spreads remain wider than a year ago.
Fortunately for the Fed, it has not had to worry about its easings reigniting
inflation. This is largely due to the competitive nature of today's worldwide
business environment. Consequently, further easing of the federal funds rate is
likely in 1999.
Money market investors can anticipate slightly lower investment returns in the
near-term as the Fed's previous rate cuts work their way through the system. As
1999 unfolds, macroeconomic events will determine the direction of interest
rates. At present, the probabilities favor flat to lower interest rates in the
first half of the year.
The Adviser has selectively taken advantage of the attractive yields present in
certain segments of money market offerings, particularly adjustable rate
securities, which are offering better value than has been available for
sometime. Be assured that the Adviser will continue to give primary attention to
investment quality and liquidity while seeking money market securities with
attractive yields.
Sincerely,
OLDE CUSTODIAN FUND
LISA FILDES
Lisa S. Fildes
President
BOTTOM LOGO
2
<PAGE> 3
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 34.73%
$11,585,000 Morgan Stanley Dean Witter Discover, 5.300%, due
11/02/98.................................................... $ 11,583,294
4,000,000 Conagra Incorporated, 5.600%, due 11/03/98.................. 3,998,756
8,000,000 G.E. Company, 5.250%, due 11/04/98.......................... 7,996,500
8,605,000 G.E. Company, 5.250%, due 11/05/98.......................... 8,599,981
7,920,000 Norwest Financial Incorporated, 5.390%, due 11/06/98........ 7,914,071
5,000,000 Aetna Services Incorporated, 5.260%, due 11/09/98........... 4,994,156
2,230,000 Goldman Sachs Group, L.P., 5.340%, due 11/09/98............. 2,227,354
4,235,000 Goldman Sachs Group, L.P., 5.170%, due 11/16/98............. 4,225,877
8,820,000 GTE Corporation, 5.270%, due 11/17/98....................... 8,799,342
6,350,000 Sears Acceptance Corporation, 5.270%, due 11/18/98.......... 6,334,197
7,000,000 Norwest Financial Incorporated, 5.250%, due 11/19/98........ 6,981,625
6,500,000 CIGNA Corporation, 5.120%, due 11/20/98..................... 6,482,436
6,475,000 CIGNA Corporation, 5.120%, due 11/23/98..................... 6,454,740
7,925,000 Sears Acceptance Corporation, 5.290%, due 11/24/98.......... 7,898,216
6,000,000 Household Finance Corporation, 5.230%, due 11/25/98......... 5,979,080
5,995,000 Household Finance Corporation, 5.230%, due 11/27/98......... 5,972,356
10,165,000 Associates Corporation NA, 5.090%, due 12/07/98............. 10,113,260
8,000,000 G.E. Capital Corporation, 5.090%, due 12/08/98.............. 7,958,149
7,795,000 Associates Corporation NA, 5.080%, due 12/09/98............. 7,753,201
6,005,000 G.E. Capital Services, 5.210%, due 12/15/98................. 5,966,761
4,635,000 General Motors Acceptance Corporation, 5.160%, due
01/13/99.................................................... 4,586,503
6,980,000 Deere & Company, 5.080%, due 01/27/99....................... 6,894,309
8,740,000 G.E. Capital Services, 5.060%, due 02/12/99................. 8,613,469
------------
158,327,633
YANKEE COMMERCIAL PAPER - 17.14%
7,087,000 Hitachi Credit America Corporation, 5.650%, due 11/02/98.... 7,085,887
6,080,000 Deutsche Bank Financial Incorporated, 5.200%, due
11/03/98.................................................... 6,078,243
8,000,000 Deutsche Bank Financial Incorporated, 5.330%, due
11/10/98.................................................... 7,989,340
6,000,000 Daimler Benz NA Corporation, 5.260%, due 11/12/98........... 5,990,357
9,000,000 Canon U.S.A. Incorporated, 5.350%, due 11/13/98............. 8,983,950
5,720,000 Hitachi Credit America Corporation, 5.400%, due 12/10/98.... 5,686,538
3,555,000 American Honda Finance, 5.200%, due 01/13/99................ 3,517,515
7,500,000 Fuji Photo Film Finance USA Incorporated, 5.100%, due
01/14/99.................................................... 7,421,375
9,325,000 FCE Bank PLC, 5.110%, due 01/15/99.......................... 9,225,728
7,500,000 FCE Bank PLC, 5.100%, due 01/28/99.......................... 7,406,500
8,880,000 AKZO Nobel Incorporated, 5.100%, due 02/18/99............... 8,742,878
------------
78,128,311
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 47.81%
$ 2,000,000 U.S. Bankcorp NA, 5.093%, due 11/16/98 (a).................. $ 1,999,947
6,000,000 NationsBank of Texas NA, 5.600%, due 12/18/98 (a)........... 6,001,236
5,000,000 Salomon Smith Barney Holdings, 5.180%, due 01/14/99......... 5,000,000
10,000,000 Abbey National Treasury, 5.540%, due 01/20/99............... 9,996,214
5,000,000 Key Bank NA, 5.130%, due 01/29/99 (a)....................... 4,999,404
7,000,000 Toyota Motor Credit Corporation, 5.560%, due 01/29/99....... 6,999,341
4,000,000 Abbey National Treasury, 5.500%, due 02/02/99............... 3,998,728
4,000,000 Merrill Lynch & Company, 5.169%, due 02/26/99 (a)........... 4,000,000
7,000,000 J.P. Morgan & Company, 5.750%, due 03/10/99................. 7,000,000
7,000,000 Chrysler Financial Corporation, 5.208%, due 03/11/99 (a).... 7,000,101
10,000,000 First Bank NA (U.S. Bank NA), 5.323%, due 03/17/99 (a)...... 10,005,251
6,000,000 National City Bank Indiana, 5.107%, due 04/20/99 (a)........ 5,998,351
10,000,000 American Express Centurion Bank, 5.159%, due 04/26/99 (a)... 10,000,000
6,000,000 American Honda Finance, 5.199%, due 04/28/99 (a)............ 6,000,000
10,000,000 General Motors Acceptance Corporation, 5.390%, due
04/30/99.................................................... 10,000,651
7,000,000 Bank One NA, 5.740%, due 05/11/99........................... 6,997,863
8,000,000 U.S. Bank NA, 5.103%, due 05/20/99 (a)...................... 7,997,625
8,000,000 J.P. Morgan & Company, 5.265%, due 07/07/99 (a)............. 7,996,786
15,000,000 First National Bank of Chicago, 5.286%, due 07/14/99 (a).... 14,994,319
4,000,000 John Deere Capital Corporation, 5.650%, due 08/06/99........ 3,998,172
8,000,000 American Express Centurion Bank, 5.353%, due 08/18/99 (a)... 8,000,000
8,000,000 Pepsico Incorporated, 5.498%, due 08/19/99 (a).............. 7,992,803
10,000,000 Norwest Corporation, 5.550%, due 08/31/99................... 9,996,018
2,000,000 G.E. Capital Corporation, 5.544%, due 09/08/99 (a).......... 2,000,000
8,000,000 IBM Credit Corporation, 5.450%, due 09/16/99 (a)............ 8,000,000
8,000,000 Key Bank NA, 5.345%, due 09/23/99 (a)....................... 7,996,427
10,000,000 Toyota Motor Credit Corporation, 5.283%, due 10/06/99 (a)... 9,997,260
6,000,000 IBM Corporation, 5.293%, due 10/19/99 (a)................... 5,997,686
2,000,000 Toyota Motor Credit Corporation, 5.383%, due 10/19/99 (a)... 2,000,000
5,000,000 General Motors Acceptance Corporation, 5.179%, due
10/28/99.................................................... 4,994,439
10,000,000 Caterpillar Financial Services Corporation, 5.480%, due
11/15/99.................................................... 9,998,008
------------
217,956,630
------------
TOTAL INVESTMENTS -
99.7% ................ 454,412,574
OTHER ASSETS LESS
LIABILITIES - 0.3% ... 1,503,330
------------
NET ASSETS - 100% .... $455,915,904
============
</TABLE>
(a)- Variable rate securities. The rates shown are the current rates as of
October 31, 1998.
See accompanying notes.
4
<PAGE> 5
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OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1998
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $454,412,574
Interest receivable....................................... 1,839,375
Prepaid expenses.......................................... 40,756
------------
TOTAL ASSETS............................................ 456,292,705
LIABILITIES:
Dividends payable (Note 2)................................ 108,375
Accrued expenses.......................................... 149,048
Payable to OLDE Asset Management, Inc..................... 119,378
------------
TOTAL LIABILITIES....................................... 376,801
------------
NET ASSETS applicable to 455,915,904 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $455,915,904
============
NET ASSET VALUE, offering and redemption price per share
on 455,915,904 shares of beneficial interest
outstanding............................................... $1.00
============
</TABLE>
OLDE MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1998
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 24,049,831
EXPENSES:
Management fees........................................... 2,117,687
Transfer agent fees....................................... 1,414,201
Custodian fees............................................ 29,250
Professional fees......................................... 18,798
Accounting fees........................................... 16,500
Printing and postage...................................... 69,805
Trustee fees.............................................. 7,300
Insurance................................................. 9,284
Registration costs........................................ 106,396
12b-1 distribution costs.................................. 85,030
------------
TOTAL EXPENSES.......................................... 3,874,251
------------
NET INVESTMENT INCOME....................................... $ 20,175,580
============
</TABLE>
See accompanying notes.
5
<PAGE> 6
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OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1998 1997
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 20,175,580 $ 19,212,934
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (20,175,580) (19,212,934)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 1,786,852,279 1,744,307,612
Net asset value of shares issued in reinvestment of
dividends............................................... 19,037,821 18,397,929
--------------- ---------------
1,805,890,100 1,762,705,541
Cost of shares redeemed................................... (1,753,141,583) (1,732,685,036)
--------------- ---------------
Net increase in shareholders' equity from share
transactions............................................ 52,748,517 30,020,505
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 52,748,517 30,020,505
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 403,167,387 373,146,882
--------------- ---------------
At end of year............................................ $ 455,915,904 $ 403,167,387
=============== ===============
</TABLE>
OLDE MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<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..................... 0.0476 0.0470 0.0460 0.0487 0.0293
DISTRIBUTIONS:
Dividends from net investment income...... (0.0476) (0.0470) (0.0460) (0.0487) (0.0293)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR................ $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total return(annualized).................. +4.76% +4.70% +4.60% +4.87% +2.93%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)................................ $455,916 $403,167 $373,147 $313,232 $209,288
Ratio of expenses to average net assets... 0.91% 0.95% 1.00% 1.07% 1.05%
Ratio of net investment income to average
net assets................................ 4.76% 4.70% 4.60% 4.87% 2.93%
</TABLE>
See accompanying notes.
6
<PAGE> 7
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OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 29.39%
$ 3,400,000 Texas Utilities Company, 6.150%, due 11/02/98............... $ 3,399,419
5,115,000 Morgan Stanley Dean Witter Discover, 5.300%, due 11/02/98... 5,114,247
8,545,000 G.E. Company, 5.250%, due 11/03/98.......................... 8,542,508
5,000,000 GTE Corporation, 5.280%, due 11/04/98....................... 4,997,800
5,000,000 Aetna Services Incorporated, 5.420%, due 11/06/98........... 4,996,236
4,765,000 G.E. Company, 5.280%, due 11/06/98.......................... 4,761,506
3,130,000 Goldman Sachs Group, L.P., 5.340%, due 11/09/98............. 3,126,286
4,915,000 Aetna Services Incorporated, 5.280%, due 11/10/98........... 4,908,512
7,005,000 Aetna Services Incorporated, 5.260%, due 11/12/98........... 6,993,741
4,920,000 Goldman Sachs Group, L.P., 5.360%, due 11/17/98............. 4,908,279
4,110,000 Sears Acceptance Corporation, 5.270%, due 11/18/98.......... 4,099,772
4,200,000 Norwest Financial Incorporated, 5.250%, due 11/20/98........ 4,188,363
5,655,000 CIGNA Corporation, 5.120%, due 11/23/98..................... 5,637,306
4,265,000 Household Finance Corporation, 5.230%, due 11/27/98......... 4,248,890
3,625,000 Chrysler Financial Corporation, 5.190%, due 11/30/98........ 3,609,844
5,000,000 Sears Acceptance Corporation, 5.130%, due 12/15/98.......... 4,968,650
4,480,000 Sears Acceptance Corporation, 5.130%, due 12/16/98.......... 4,451,272
8,095,000 General Motors Acceptance Corporation, 5.160%, due
01/13/99.................................................... 8,010,299
6,525,000 Deere & Company, 5.080%, due 01/27/99....................... 6,444,895
5,215,000 G.E. Capital Services, 5.060%, due 02/12/99................. 5,139,501
------------
102,547,326
YANKEE COMMERCIAL PAPER - 13.21%
6,000,000 Daimler Benz NA Corporation, 5.280%, due 11/05/98........... 5,996,480
5,000,000 Daimler Benz NA Corporation, 5.260%, due 11/09/98........... 4,994,156
7,780,000 Hitachi America Limited, 5.200%, due 11/13/98............... 7,766,515
5,000,000 FCE Bank PLC, 5.120%, due 11/24/98.......................... 4,983,644
4,765,000 FCE Bank PLC, 5.120%, due 11/25/98.......................... 4,748,735
4,280,000 Hitachi Credit America Corporation, 5.400%, due 12/10/98.... 4,254,962
4,825,000 American Honda Finance Corporation, 5.200%, due 01/12/99.... 4,774,820
4,390,000 Fuji Photo Film Finance USA, 5.100%, due 01/14/99........... 4,343,978
4,300,000 FCE Bank PLC, 5.100%, due 01/28/99.......................... 4,246,393
------------
46,109,683
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
BANK OBLIGATIONS - 15.33%
$ 4,000,000 Bayerische Landesbank New York, 5.810%, due 12/17/98........ $ 3,999,517
3,500,000 Credit Suisse First Boston, 5.600%, due 02/11/99............ 3,500,000
5,000,000 Deutsche Bank New York, 5.695%, due 03/05/99................ 4,999,186
5,000,000 Credit Suisse First Boston, 4.790%, due 04/19/99 (a)........ 5,000,000
2,000,000 Rabobank Nederland New York, 5.740%, due 04/28/99........... 1,999,487
12,000,000 Barclays Bank New York, 5.240%, due 06/02/99 (a)............ 11,994,838
7,000,000 Swiss Bank Corporation New York, 5.740%, due 06/11/99....... 6,999,739
5,000,000 Abbey National Treasury, 5.244%, due 06/15/99 (a)........... 4,996,803
10,000,000 Bayerische Landesbank New York, 5.092%, due 06/30/99 (a).... 9,995,048
------------
53,484,618
SHORT-TERM NOTES - 41.55%
7,000,000 U.S. Bancorp NA, 5.093%, due 11/16/98 (a)................... 6,999,814
4,000,000 Nations Bank of Texas NA, 5.600%, due 12/18/98 (a).......... 4,000,824
3,000,000 Salomon Smith Barney Holdings, 5.180%, due 01/14/99......... 3,000,000
5,000,000 Abbey National Treasury, 5.540%, due 01/20/99............... 4,998,379
5,000,000 Toyota Motor Credit Corporation, 5.560%, due 01/29/99....... 4,999,530
3,000,000 Key Bank NA, 5.130%, due 01/29/99 (a)....................... 2,999,643
5,000,000 American Express Credit Corporation, 7.375%, due
02/01/99.................................................... 5,019,613
3,000,000 Abbey National Treasury, 5.500%, due 02/02/99............... 2,999,047
3,000,000 Merrill Lynch & Company, 5.169%, due 02/26/99 (a)........... 3,000,000
3,000,000 J.P. Morgan & Company, 5.750%, due 03/10/99................. 3,000,000
8,000,000 Chrysler Financial Corporation, 5.208%, due 03/11/99 (a).... 8,000,116
4,000,000 National City Bank Indiana, 5.107%, due 04/20/99 (a)........ 3,998,901
5,000,000 American Express Centurion Bank, 5.159%, due 04/26/99 (a)... 5,000,000
4,000,000 American Honda Finance Corporation, 5.199%, due 04/28/99
(a)......................................................... 4,000,000
5,000,000 General Motors Acceptance Corporation, 5.390%, due
04/30/99.................................................... 5,000,325
3,000,000 Bank One NA, 5.740%, due 05/11/99........................... 2,999,084
7,000,000 U.S. Bank NA, 5.103%, due 05/20/99 (a)...................... 6,997,921
5,000,000 Merrill Lynch & Company, 5.169%, due 06/25/99 (a)........... 5,000,000
13,000,000 J.P. Morgan & Company, 5.265%, due 07/07/99 (a)............. 12,994,777
5,000,000 First National Bank of Chicago, 5.286%, due 07/14/99 (a).... 4,998,107
3,000,000 John Deere Capital Corporation, 5.650%, due 08/06/99........ 2,998,629
5,000,000 Pepsico Incorporated, 5.498%, due 08/19/99 (a).............. 4,995,502
3,000,000 Norwest Corporation, 5.550%, due 08/31/99................... 2,998,805
6,000,000 G.E. Capital Corporation, 5.544%, due 09/08/99 (a).......... 6,000,000
5,000,000 IBM Credit Corporation, 5.450%, due 09/16/99 (a)............ 5,000,000
6,000,000 Key Bank NA, 5.345%, due 09/23/99 (a)....................... 5,997,321
5,000,000 Toyota Motor Credit Corporation, 5.283%, due 10/06/99 (a)... 4,998,630
4,000,000 IBM Corporation, 5.293%, due 10/19/99 (a)................... 3,998,457
3,000,000 Toyota Motor Credit Corporation, 5.383%, due 10/19/99 (a)... 3,000,000
5,000,000 Caterpillar Financial Service Corporation, 5.480%, due
11/15/99 (a)................................................ 4,999,004
------------
144,992,429
------------
TOTAL INVESTMENTS -
99.5% ................ 347,134,056
OTHER ASSETS LESS
LIABILITIES - 0.5% ... 1,800,120
------------
NET ASSETS - 100% .... $348,934,176
============
</TABLE>
(a)- Variable rate securities. The rates shown are the current rates as of
October 31, 1998.
See accompanying notes.
8
<PAGE> 9
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OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1998
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $347,134,056
Cash...................................................... 2,819
Interest receivable....................................... 1,989,599
Prepaid expenses.......................................... 36,326
------------
TOTAL ASSETS............................................ 349,162,800
LIABILITIES:
Dividends payable (Note 2)................................ 93,243
Accrued expenses.......................................... 18,866
Payable to OLDE Asset Management, Inc..................... 116,515
------------
TOTAL LIABILITIES....................................... 228,624
------------
NET ASSETS applicable to 348,934,176 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $348,934,176
============
NET ASSET VALUE, offering and redemption price per share
on 348,934,176 shares of beneficial interest
outstanding............................................... $1.00
============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1998
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 18,262,315
EXPENSES:
Management fees........................................... 963,833
Transfer agent fees....................................... 412,789
Custodian fees............................................ 23,369
Professional fees......................................... 18,798
Accounting fees........................................... 16,500
Printing and postage...................................... 16,514
Trustee fees.............................................. 3,650
Insurance................................................. 8,375
Registration costs........................................ 95,833
12b-1 distribution costs.................................. 32,163
------------
TOTAL EXPENSES.......................................... 1,591,824
------------
NET INVESTMENT INCOME....................................... $ 16,670,491
============
</TABLE>
See accompanying notes.
9
<PAGE> 10
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OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1998 1997
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 16,670,491 $ 13,741,064
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (16,670,491) (13,741,064)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 945,132,831 864,458,150
Net asset value of shares issued in reinvestment of
dividends............................................... 15,892,318 13,233,279
------------- -------------
961,025,149 877,691,429
Cost of shares redeemed................................... (902,053,911) (821,690,883)
------------- -------------
Net increase in shareholders' equity from share
transactions............................................ 58,971,238 56,000,546
------------- -------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 58,971,238 56,000,546
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 289,962,938 233,962,392
------------- -------------
At end of year............................................ $ 348,934,176 $ 289,962,938
============= =============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<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..................... 0.0519 0.0508 0.0490 0.0524 0.0339
DISTRIBUTIONS:
Dividends from net investment income...... (0.0519) (0.0508) (0.0490) (0.0524) (0.0339)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR................ $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total return(annualized).................. +5.19% +5.08% +4.90% +5.24% +3.39%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)................................ $348,934 $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................................ 5.19% 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
OCTOBER 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 34.95%
$40,590,000 Morgan Stanley Dean Witter Discover, 5.300%, due 11/02/98... $ 40,584,024
23,500,000 Nabisco Incorporated, 6.050%, due 11/02/98.................. 23,496,051
23,500,000 Raytheon Company, 6.000%, due 11/02/98...................... 23,496,083
23,500,000 Texas Utilities Company, 6.150%, due 11/02/98............... 23,495,985
17,310,000 Conagra Incorporated, 5.600%, due 11/03/98.................. 17,304,615\
35,965,000 Sears Acceptance Corporation, 5.270%, due 11/03/98.......... 35,954,470
45,000,000 G.E. Capital Corporation, 5.280%, due 11/04/98.............. 44,980,200
7,925,000 G.E. Capital Corporation, 5.280%, due 11/05/98.............. 7,920,351
39,935,000 Norwest Financial Incorporated, 5.390%, due 11/05/98........ 39,911,083
13,570,000 Goldman Sachs Group, L.P., 5.340%, due 11/09/98............. 13,553,897
35,000,000 Goldman Sachs Group, L.P., 5.330%, due 11/09/98............. 34,958,544
57,420,000 G.E. Company, 5.270%, due 11/10/98.......................... 57,344,349
37,205,000 American Express Credit Corporation, 5.210%, due 11/12/98... 37,145,772
27,625,000 Goldman Sachs Group, L.P., 5.170%, due 11/20/98............. 27,549,622
18,580,000 Norwest Financial Incorporated, 5.110%, due 11/20/98........ 18,529,891
29,615,000 Norwest Financial Incorporated, 5.250%, due 11/23/98........ 29,519,985
30,000,000 CIGNA Corporation, 5.120%, due 11/24/98..................... 29,901,867
40,000,000 Goldman Sachs Group, L.P., 5.200%, due 11/27/98............. 39,849,778
21,510,000 Chrysler Financial Corporation, 5.190%, due 11/30/98........ 21,420,070
29,490,000 Associates Corporation NA, 5.080%, due 12/09/98............. 29,331,868
45,885,000 G.E. Capital Services, 5.090%, due 12/10/98................. 45,631,982
25,095,000 G.E. Capital Services, 5.210%, due 12/15/98................. 24,935,201
49,230,000 G.E. Company, 5.130%, due 12/31/98.......................... 48,809,084
12,765,000 General Motors Acceptance Corporation, 5.160%, due 12,633,265
01/12/99....................................................
50,000,000 General Motors Acceptance Corporation, 5.160%, due 49,476,833
01/13/99....................................................
21,530,000 G.E. Capital Corporation, 5.030%, due 01/21/99.............. 21,286,334
40,000,000 G.E. Capital Services, 5.030%, due 01/22/99................. 39,541,711
--------------
838,562,915
YANKEE COMMERCIAL PAPER - 9.32%
44,875,000 Statoil, 5.480%, due 11/06/98............................... 44,840,845
50,000,000 Deutsche Bank Financial Incorporated, 5.330%, due 49,918,569
11/12/98....................................................
21,000,000 Canon U.S.A. Incorporated, 5.350%, due 11/13/98............. 20,962,550
39,080,000 FCE Bank PLC, 5.120%, due 11/25/98.......................... 38,946,607
34,850,000 FCE Bank PLC, 5.100%, due 01/27/99.......................... 34,420,474
35,000,000 FCE Bank PLC, 5.100%, due 01/28/99.......................... 34,563,667
--------------
223,652,712
BANK OBLIGATIONS - 14.23%
46,000,000 Bayerische Landesbank New York, 5.810%, due 12/17/98........ 45,994,454
16,500,000 Credit Suisse First Boston, 5.600%, due 02/11/99............ 16,500,000
20,000,000 Deutsche Bank New York, 5.695%, due 03/05/99................ 19,996,745
15,000,000 Deutsche Bank New York, 5.700%, due 03/30/99................ 14,995,040
20,000,000 Credit Suisse First Boston, 4.790%, due 04/19/99 (a)........ 20,000,000
23,000,000 Rabobank Nederland New York, 5.740%, due 04/28/99........... 22,994,093
88,000,000 Barclays Bank New York, 5.240%, due 06/02/99 (a)............ 87,962,142
28,000,000 Swiss Bank Corporation New York, 5.740%, due 06/11/99....... 27,998,953
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
BANK OBLIGATIONS - (CONTINUED)
$45,000,000 Abbey National Treasury, 5.244%, due 06/15/99 (a)........... $ 44,971,231
40,000,000 Bayerische Landesbank New York, 5.092%, due 06/30/99 (a).... 39,980,192
--------------
341,392,850
SHORT TERM NOTES - 40.30%
41,000,000 U.S. Bankcorp NA, 5.093%, due 11/16/98 (a).................. 40,999,037
15,000,000 Nationsbank of Texas NA, 5.600%, due 12/18/98 (a)........... 15,003,092
17,000,000 Salomon Smith Barney Holdings, 5.180%, due 01/14/99......... 17,000,000
22,000,000 Abbey National Treasury, 5.540%, due 01/20/99............... 21,991,599
17,000,000 Key Bank NA, 5.130%, due 01/29/99 (a)....................... 16,997,977
38,000,000 Toyota Motor Credit Corporation, 5.560%, due 01/29/99....... 37,996,424
18,000,000 Abbey National Treasury, 5.500%, due 02/02/99............... 17,994,281
15,000,000 Chrysler Financial Corporation, 5.208%, due 02/17/99 (a).... 14,995,851
18,000,000 Merrill Lynch & Company, 5.169%, due 02/26/99 (a)........... 18,000,000
15,000,000 J.P. Morgan & Company, 5.750%, due 03/10/99................. 15,000,000
15,000,000 First Bank NA (U.S. Bank NA), 5.323%, due 03/17/99.......... 15,007,877
13,000,000 Merrill Lynch & Company, 5.463%, due 04/06/99 (a)........... 13,011,822
40,000,000 National City Bank Indiana, 5.107%, due 04/20/99 (a)........ 39,989,013
35,000,000 American Express Centurion Bank, 5.159%, due 04/26/99 (a)... 35,000,000
25,000,000 American Honda Finance, 5.199%, due 04/28/99 (a)............ 25,000,000
30,000,000 General Motors Acceptance Corporation, 5.380%, due 05/07/99 30,003,536
(a).........................................................
25,000,000 Key Bank NA, 5.095%, due 05/12/99 (a)....................... 24,990,029
25,000,000 First Bank NA Minneapolis, 5.243%, due 05/19/99 (a)......... 25,010,018
35,000,000 U.S. Bank NA, 5.103%, due 05/20/99 (a)...................... 34,989,607
45,000,000 Merrill Lynch & Company, 5.169%, due 06/25/99 (a)........... 45,000,000
19,000,000 J.P. Morgan & Company, 5.265%, due 07/07/99 (a)............. 18,992,367
20,000,000 American Honda Finance Corporation, 5.300%, due 07/08/99 20,000,000
(a).........................................................
30,000,000 First National Bank of Chicago, 5.286%, due 07/14/99 (a).... 29,988,638
23,000,000 John Deere Capital Corporation, 5.650%, due 08/06/99........ 22,989,489
17,000,000 American Express Centurion Bank, 5.353%, due 08/18/99 (a)... 17,000,000
37,000,000 Pepsico Incorporated, 5.498%, due 08/19/99 (a).............. 36,966,714
25,000,000 American Express Centurion Bank, 5.167%, due 08/20/99 (a)... 25,000,000
37,000,000 Norwest Corporation, 5.550%, due 08/31/99................... 36,985,266
42,000,000 G.E. Capital Corporation, 5.544%, due 09/08/99 (a).......... 42,000,000
37,000,000 IBM Credit Corporation, 5.450%, due 09/16/99 (a)............ 37,000,000
36,000,000 Key Bank NA, 5.345%, due 09/23/99 (a)....................... 35,983,923
35,000,000 Toyota Motor Credit Corporation, 5.283%, due 10/06/99 (a)... 34,990,411
30,000,000 IBM Corporation, 5.293%, due 10/19/99 (a)................... 29,988,427
20,000,000 Toyota Motor Credit Corporation, 5.383%, due 10/19/99 (a)... 20,000,000
20,000,000 General Motors Acceptance Corporation, 5.179%, due 10/28/99 19,977,756
(a).........................................................
35,000,000 Caterpillar Financial Services Corporation, 5.480%, due 34,993,030
11/15/99(a).................................................
--------------
966,836,184
US GOVERNMENT AGENCY - 0.69%
16,450,000 Federal Home Loan Bank, 5.530%, due 02/26/99................ 16,448,352
--------------
16,448,352
--------------
TOTAL INVESTMENTS - 2,386,893,013
99.5%.................
OTHER ASSETS LESS
LIABILITIES - 0.5%.... 12,251,224
--------------
NET ASSETS - 100%..... $2,399,144,237
==============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
October 31, 1998.
See accompanying notes.
12
<PAGE> 13
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1998
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $2,386,893,013
Cash...................................................... 1,179
Interest receivable....................................... 13,459,617
Prepaid expenses.......................................... 104,647
--------------
TOTAL ASSETS............................................ 2,400,458,456
LIABILITIES:
Dividends payable (Note 2)................................ 682,019
Accrued expenses.......................................... 230,871
Payable to OLDE Asset Management, Inc. ................... 401,329
--------------
TOTAL LIABILITIES....................................... 1,314,219
--------------
NET ASSETS applicable to 2,399,144,237 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $2,399,144,237
==============
NET ASSET VALUE, offering and redemption price per share
on 2,399,144,237 shares of beneficial interest
outstanding............................................... $1.00
==============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1998
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 125,394,227
EXPENSES:
Management fees........................................... 3,312,960
Transfer agent fees....................................... 538,834
Custodian fees............................................ 114,173
Professional fees......................................... 20,623
Accounting fees........................................... 16,500
Printing and postage...................................... 30,898
Trustee fees.............................................. 36,500
Insurance................................................. 24,009
Registration costs........................................ 212,394
12b-1 distribution costs.................................. 1,424,223
--------------
TOTAL EXPENSES............................................ 5,731,114
Expenses waived and reimbursed............................ (1,313,836)
--------------
NET EXPENSES.............................................. 4,417,278
--------------
NET INVESTMENT INCOME....................................... $ 120,976,949
==============
</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
1998 1997
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 120,976,949 $ 110,741,315
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (120,976,949) (110,741,315)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 3,921,475,038 3,644,008,369
Net asset value of shares issued in reinvestment of
dividends............................................... 117,405,508 109,145,684
--------------- ---------------
4,038,880,546 3,753,154,053
Cost of shares redeemed................................... (3,707,015,547) (3,511,354,911)
--------------- ---------------
Net increase in shareholders' equity from share
transactions............................................ 331,864,999 241,799,142
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 331,864,999 241,799,142
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 2,067,279,238 1,825,480,096
--------------- ---------------
At end of year............................................ $ 2,399,144,237 $ 2,067,279,238
=============== ===============
</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
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- --------
<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..................... 0.0548 0.0552 0.0560 0.0598 0.0401
DISTRIBUTIONS:
Dividends from net investment income...... (0.0548) (0.0552) (0.0560) (0.0598) (0.0401)
---------- ---------- ---------- ---------- --------
NET ASSET VALUE, END OF YEAR................ $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ========
Total return(annualized).................. +5.48% +5.52% +5.60% +5.98% +4.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted).................................. $2,399,144 $2,067,279 $1,825,480 $1,172,123 $392,304
Ratio of net expenses to average net
assets.................................... 0.20% 0.14% - - -
Ratio of total expenses to average net
assets.................................... 0.26% 0.27% 0.36% 0.37% 0.33%
Ratio of net investment income to average
net assets................................ 5.48% 5.52% 5.60% 5.98% 4.01%
</TABLE>
See accompanying notes.
14
<PAGE> 15
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1998
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.
4. TRANSACTIONS WITH AFFILIATES
The Fund has an Investment Advisory Agreement with OLDE Asset Management, Inc.
(the Adviser). Under the current agreement, the Adviser receives a monthly
management fee equal to an annual rate of the average daily net asset value of
each series in accordance with the following schedule:
<TABLE>
<S> <C>
OLDE Money Market Series 0.50%
OLDE Premium Money Market Series 0.30%
OLDE Premium Plus Money Market Series 0.15%
</TABLE>
The Advisory Agreement also provides for the Adviser to reimburse a series for
the aggregate expenses of a series (excluding taxes, brokerage fees, and, to the
extent permitted by state securities laws, extraordinary expenses) which exceed
2% of its first $10 million in assets, 1 1/2% of the next
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
$20 million and 1% of assets in excess of $30 million.
The Fund has an Accounting Service Agreement with the Adviser. Under the current
agreement, the Adviser receives a fixed fee of $1,375 per month for each series.
The Fund has a Shareholder Services Agreement with OLDE Discount Corporation
(OLDE Discount). Under the current agreement, OLDE Discount receives a fixed fee
of $24 per 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,
1998. For the year ended October 31, 1998, the Fund made no direct payments to
its officers and affiliated trustees and incurred trustee fees of $47,450 to
unaffiliated trustees.
Effective January 1, 1997 through January 1, 2000, the Adviser has voluntarily
agreed to limit expenses of OLDE Premium Plus Money Market 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, 1998, the
Series incurred total expenses of $5,731,114. The Adviser waived fees of $4,270.
OLDE Discount waived 12b-1 expenses of $1,309,566.
5. DISTRIBUTION ASSISTANCE
Under a Plan and Agreement of Distribution pursuant to Rule 12b-1 of the
Investment Company Act of 1940, OLDE Discount is entitled to reimbursement of
certain expenses of distribution in an amount not to exceed an annual rate of
the average daily net asset value of each series in accordance with the
following schedule:
<TABLE>
<S> <C>
OLDE Money Market Series 0.25%
OLDE Premium Money Market Series 0.15%
OLDE Premium Plus Money Market Series 0.15%
</TABLE>
For the year ended October 31, 1998, the annualized percentage rate of 12b-1
expense was .02% 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 year ended October 31, 1998 are as
follows:
OLDE Money Market Series:
Purchases: $2,654,202,122
Sales (including maturities): $2,611,389,113
OLDE Premium Money Market Series:
Purchases: $1,987,421,078
Sales (including maturities): $1,935,783,041
OLDE Premium Plus Money Market Series:
Purchases: $13,745,072,556
Sales (including maturities): $13,468,443,476
7. BANK LINE OF CREDIT
At October 31, 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 October 31, 1998.
8. YEAR 2000 (UNAUDITED)
The Year 2000 (Y2K) issue is, in brief, the programming of computer systems to
recognize the values "00" in a date field as the Year 2000, and not the year
1900.
The Fund is largely dependent upon the computer systems of the Adviser and third
party vendors and is taking steps reasonably designed to ensure that those
systems will be Year 2000 compliant, meaning that they will be capable of
processing transactions and data on and after January 1, 2000, properly
recognizing the century.
At this time, there can be no assurances that the systems of the Adviser and
third party vendors upon which the Fund relies will not have an adverse effect
on the Fund's operations. The Fund believes, however, that with scheduled
modifications to, and/or replacement of, existing systems by the Adviser and
third party vendors, the Y2K issue will not pose material operational problems
for the Fund.
16
<PAGE> 17
---------------------------------------------------------------------
ERNST & 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, 1998, 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, 1998, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Series comprising OLDE Custodian Fund as of October 31, 1998, and the
results of their operations and the changes in their net assets and the
financial highlights for the periods referred to above in conformity with
generally accepted accounting principles.
Detroit, Michigan
November 25, 1998
ERNST & YOUNG LLP SIGNATURE
17
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81397
