<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, 1999
(UNAUDITED)
OLDE MONEY
MARKET SERIES
OLDE PREMIUM
MONEY MARKET SERIES
OLDE PREMIUM PLUS
MONEY MARKET SERIES
81429 - 6/99
GRAPHIC OF BUILDING
<PAGE> 2
TOP LOGO
OLDE CUSTODIAN FUND
June 2, 1999
Dear Shareholder,
We are pleased to present the Semi-Annual Report for the period ending April 30,
1999, for OLDE Custodian Fund. The Fund consists of OLDE Money Market Series,
OLDE Premium Money Market Series, and OLDE Premium Plus Money Market Series.
This report contains unaudited schedules of investments and financial statements
for all three series.
The past several months have been characterized by a strong U.S. economy. A rise
in gross domestic product of 4.1% in the first quarter has set the stage for the
ninth consecutive year of economic growth. Unlike a number of prior economic
expansions, inflation has been held in check. This resulted from a unique
confluence of events, including: lower import prices due to economic malaise in
Asia, slowing health care costs, increased productivity, and reduced
inflationary expectations. While the low inflation environment is still intact,
subtle changes have begun to surface. Consequently, investors are seeking
interest rates which compensate for the potential increases in inflation.
Despite the strong U. S. economy and the potential for price increases, the U.S.
Federal Reserve has remained on the sidelines. The Fed has, however, shown
increased concern about inflationary pressures as evidenced by the tightening
bias the Federal Open Market Committee adopted at its May meeting. This stance
follows the 0.7% increase in the Consumer Price Index for April and continued
strength in consumer purchases. It is the Fed's hope, however, that the bond
market will push rates high enough to moderate economic growth, thereby reducing
inflationary pressures, and negating the necessity for a move by the Fed.
In this environment, money market investors have the potential for higher
average returns in 1999. An increase in the weighted average maturity of the
Series' portfolios may occur if the yield curve remains favorably disposed
toward longer term money market instruments. Further, the Adviser anticipates
continuing its purchase of adjustable rate securities as long as such securities
afford good relative value.
Be assured that the Adviser will continue to give primary attention to
investment quality and liquidity, particularly as the new millennium approaches.
As always, our shareholders' interests remain foremost in mind.
Sincerely,
OLDE CUSTODIAN FUND
/s/ LISA FILDES
Lisa S. Fildes
President
TOP LOGO
2
<PAGE> 3
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 44.53%
$12,535,000 G.E. Company, 4.840%, due 05/03/99.......................... $ 12,531,629
11,625,000 Merrill Lynch & Company, 4.930%, due 05/03/99............... 11,621,816
6,615,000 Associates Corporation of NA, 4.830%, due 05/04/99.......... 6,612,337
6,130,000 Sears Roebuck Acceptance Corporation, 4.860%, due
05/05/99.................................................... 6,126,690
10,685,000 Sears Roebuck Acceptance Corporation, 4.860%, due
05/06/99.................................................... 10,677,788
13,820,000 Prudential Funding, 4.840%, due 05/07/99.................... 13,808,852
10,580,000 Goldman Sachs Group, 4.850%, due 05/10/99................... 10,567,172
10,000,000 Ford Motor Credit Company, 4.820%, due 05/12/99............. 9,985,272
14,920,000 Morgan Stanley Dean Witter Discover, 4.850%, due 05/13/99... 14,895,879
10,445,000 G.E. Capital Services, 4.820%, due 05/17/99................. 10,422,625
8,025,000 Salomon Smith Barney Holdings Incorporated, 4.820%, due
05/17/99.................................................... 8,007,809
8,685,000 General Motors Acceptance Corporation, 4.800%, due
05/18/99.................................................... 8,665,314
8,000,000 American General Corporation, 4.790%, due 05/24/99.......... 7,975,518
8,190,000 American General Corporation, 4.790%, due 05/25/99.......... 8,163,847
5,825,000 Commercial Credit Corporation, 4.790%, due 05/27/99......... 5,804,849
7,000,000 Prudential Funding, 4.780%, due 05/28/99.................... 6,974,905
7,000,000 Bear Stearns Companies Incorporated, 4.840%, due 06/01/99... 6,970,826
7,480,000 Bear Stearns Companies Incorporated, 4.840%, due 06/02/99... 7,447,819
6,675,000 Ford Motor Credit Company, 4.780%, due 06/03/99............. 6,645,752
6,125,000 Ford Motor Credit Company, 4.780%, due 06/04/99............. 6,097,349
8,005,000 G.E. Credit Capital Services of P.R., 4.820%, due
06/07/99.................................................... 7,965,344
7,350,000 Salomon Smith Barney Holdings Incorporated, 4.810%, due
06/08/99.................................................... 7,312,682
10,405,000 G.E. Capital Services, 4.810%, due 06/14/99................. 10,343,830
5,645,000 G.E. Capital Corporation, 4.780%, due 06/18/99.............. 5,609,023
9,970,000 Bear Stearns Companies Incorporated, 4.830%, due 06/18/99... 9,905,793
9,000,000 G.E. Capital Corporation, 4.936%, due 01/24/00 (a).......... 9,000,000
------------
230,140,720
YANKEE COMMERCIAL PAPER - 11.00%
10,000,000 Toyota Motor Credit of P.R., 4.830%, due 05/14/99........... 9,982,558
7,465,000 Statoil, 4.800%, due 05/19/99............................... 7,447,084
8,845,000 FCE Bank PLC, 4.820%, due 05/21/99.......................... 8,821,315
7,860,000 Hitachi Credit America Corporation, 4.900%, due 05/26/99.... 7,833,254
10,000,000 American Honda Finance Corporation, 4.800%, due 06/23/99.... 9,929,333
13,015,000 Repsol International Finance, 4.810%, due 08/19/99.......... 12,823,716
------------
56,837,260
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 41.29%
$ 7,000,000 Bank One NA, 5.740%, due 05/11/99........................... $ 6,999,888
8,000,000 U.S. Bank NA, 4.808%, due 05/20/99 (a)...................... 7,999,775
8,000,000 Corestates Capital Corporation, 5.001%, due 07/01/99 (a).... 8,000,292
8,000,000 J.P. Morgan & Company, 4.828%, due 07/07/99 (a)............. 7,999,132
15,000,000 First National Bank of Chicago, 4.809%, due 07/14/99 (a).... 14,998,352
4,000,000 John Deere Capital Corporation, 5.650%, due 08/06/99........ 3,999,363
8,000,000 American Express Centurion Bank, 4.874%, due 08/18/99 (a)... 8,000,000
8,000,000 Pepsico Incorporated, 4.810%, due 08/19/99 (a).............. 7,997,279
10,000,000 Norwest Corporation, 5.550%, due 08/31/99................... 9,998,396
2,000,000 G.E. Capital Corporation, 4.980%, due 09/08/99 (a).......... 2,000,000
8,000,000 IBM Credit Corporation, 4.950%, due 09/16/99 (a)............ 8,000,000
8,000,000 Key Bank NA, 5.015%, due 09/23/99 (a)....................... 7,998,411
10,000,000 Toyota Motor Credit Corporation, 4.970%, due 10/06/99 (a)... 9,998,723
10,400,000 Morgan Guaranty Trust, 5.750%, due 10/08/99................. 10,437,490
6,000,000 IBM Corporation, 4.950%, due 10/19/99 (a)................... 5,998,876
2,000,000 Toyota Motor Credit Corporation, 5.040%, due 10/19/99 (a)... 2,000,000
5,000,000 General Motors Acceptance Corporation, 4.956%, due 10/28/99
(a)......................................................... 4,997,228
10,000,000 Caterpillar Financial Services Corporation, 4.980%, due
11/15/99 (a)................................................ 9,998,960
10,000,000 First Union National Bank, 5.020%, due 11/17/99 (a)......... 10,000,000
9,000,000 Goldman Sachs Group, 5.200%, due 01/07/00 (a)............... 9,000,000
4,000,000 Abbey National Treasury, 5.040%, due 02/08/00............... 3,998,953
8,000,000 PNC Bank NA, 5.040%, due 02/16/00........................... 7,993,501
8,000,000 Morgan Stanley Dean Witter Discover, 5.096%, due 03/02/00
(a)......................................................... 8,007,208
5,000,000 Texaco Capital Incorporated, 5.120%, due 03/15/00........... 4,998,321
8,000,000 Dow Chemical Company, 4.900%, due 03/15/00 (a).............. 7,996,583
8,000,000 Nationsbank NA, 4.950%, due 03/20/00 (a).................... 8,000,000
7,000,000 National City Bank, 4.888%, due 03/29/00 (a)................ 6,996,705
9,000,000 John Deere Capital Corporation, 4.884%, due 04/03/00 (a).... 8,992,585
------------
213,406,021
US GOVERNMENT AGENCY - 2.90%
5,000,000 Sallie Mae, 4.677%, due 08/02/99 (a)........................ 4,997,646
10,000,000 Federal Home Loan Bank, 4.966%, due 02/25/00................ 9,990,151
------------
14,987,797
------------
TOTAL INVESTMENTS - 99.7% ................ 515,371,798
OTHER ASSETS LESS LIABILITIES - 0.3% ..... 1,448,112
------------
NET ASSETS - 100% .... $516,819,910
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
April 30, 1999.
See accompanying notes.
4
<PAGE> 5
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Cash...................................................... $ 589
Investments at amortized cost (Note 1).................... 515,371,798
Interest receivable....................................... 1,941,267
Prepaid expenses.......................................... 79,740
------------
TOTAL ASSETS.......................................... 517,393,394
LIABILITIES:
Dividends payable (Note 2)................................ 55,839
Accrued expenses.......................................... 336,680
Payable to OLDE Asset Management, Inc..................... 180,965
------------
TOTAL LIABILITIES..................................... 573,484
------------
NET ASSETS applicable to 516,819,910 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $516,819,910
============
NET ASSET VALUE, offering and redemption price per share on
516,819,910 shares of beneficial interest outstanding..... $1.00
============
</TABLE>
OLDE MONEY MARKET SERIES
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $$12,876,959
EXPENSES:
Management fees........................................... 1,245,912
Transfer agent fees....................................... 746,063
Custodian fees............................................ 14,664
Professional fees......................................... 10,192
Accounting fees........................................... 8,250
Printing and postage...................................... 45,675
Trustee fees.............................................. 3,762
Insurance................................................. 4,429
Registration costs........................................ 62,252
12b-1 distribution costs.................................. 203,902
-----------
TOTAL EXPENSES........................................ 2,345,101
-----------
NET INVESTMENT INCOME....................................... $10,531,858
===========
</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, 1999 OCTOBER 31, 1998
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 10,531,858 $ 20,175,580
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (10,531,858) (20,175,580)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 1,180,790,203 1,786,852,279
Net asset value of shares issued in reinvestment of
dividends............................................... 9,983,526 19,037,821
--------------- ---------------
1,190,773,729 1,805,890,100
Cost of shares redeemed................................... (1,129,869,723) (1,753,141,583)
--------------- ---------------
Net increase in shareholders' equity from share
transactions............................................ 60,904,006 52,748,517
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 60,904,006 52,748,517
SHAREHOLDERS' EQUITY:
At beginning of period.................................... 455,915,904 403,167,387
--------------- ---------------
At end of period.......................................... $ 516,819,910 $ 455,915,904
=============== ===============
</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, 1999 OCT. 31, 1998 OCT. 31, 1997 OCT. 31, 1996 OCT. 31, 1995
-------------- ------------- ------------- ------------- -------------
<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...... 0.0210 0.0476 0.0470 0.0460 0.0487
DISTRIBUTIONS:
Dividends from net
investment income........ (0.0210) (0.0476) (0.0470) (0.0460) (0.0487)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD..................... $1.00 $1.00 $1.00 1.00 $1.00
======== ======== ======== ======== ========
Total return
(annualized)............. +4.27% +4.76% +4.70% +4.60% +4.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted).......... $516,820 $455,916 $403,167 $373,147 $313,232
Ratio of expenses to
average net assets....... 0.94% 0.91% 0.95% 1.00% 1.07%
Ratio of net investment
income to average net
assets................... 4.27% 4.76% 4.70% 4.60% 4.87%
</TABLE>
See accompanying notes.
6
<PAGE> 7
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 36.82%
$10,000,000 Countrywide Home Loans, 4.930%, due 05/03/99................ $ 9,997,261
8,440,000 DaimlerChrysler NA Holding Corporation, 4.830%, due
05/03/99.................................................... 8,437,735
9,020,000 Commercial Credit Corporation, 4.840%, due 05/04/99......... 9,016,362
8,875,000 Household Finance Corporation, 4.840%, due 05/05/99......... 8,870,227
6,000,000 Associates Corporation of NA, 4.830%, due 05/06/99.......... 5,995,975
6,140,000 Sears Roebuck Acceptance Corporation, 4.860%, due
05/07/99.................................................... 6,135,027
7,045,000 Sears Roebuck Acceptance Corporation, 4.860%, due
05/10/99.................................................... 7,036,440
6,265,000 American General Finance Corporation, 4.830%, due
05/12/99.................................................... 6,255,754
8,290,000 Morgan Stanley Dean Witter Discover, 4.850%, due 05/13/99... 8,276,598
4,800,000 Ford Motor Credit Company, 4.820%, due 05/14/99............. 4,791,645
6,820,000 Salomon Smith Barney Holdings Incorporated, 4.820%, due
05/17/99.................................................... 6,805,390
7,605,000 Merrill Lynch & Company, 4.770%, due 05/24/99............... 7,581,824
5,780,000 G.T.E. Corporation, 4.820%, due 05/25/99.................... 5,761,427
6,680,000 Commercial Credit Corporation, 4.810%, due 05/28/99......... 6,655,902
7,050,000 Bear Stearns Companies Incorporated, 4.840%, due 06/01/99... 7,020,617
7,415,000 G.E. Capital Corporation, 4.800%, due 06/04/99.............. 7,381,385
6,615,000 Prudential Funding, 4.820%, due 06/04/99.................... 6,584,887
5,295,000 Bear Stearns Companies Incorporated, 4.810%, due 06/07/99... 5,268,824
4,830,000 Bear Stearns Companies Incorporated, 4.830%, due 06/18/99... 4,798,895
4,000,000 G.E. Capital Corporation, 4.936%, due 01/24/00 (a).......... 4,000,000
------------
136,672,175
YANKEE COMMERCIAL PAPER - 6.25%
3,430,000 Hitachi Credit America Corporation, 4.880%, due 05/18/99.... 3,422,096
8,690,000 Deutsche Bank Financial Incorporated, 4.790%, due
05/19/99.................................................... 8,669,187
6,535,000 FCE Bank PLC, 4.820%, due 05/21/99.......................... 6,517,501
4,605,000 American Honda Finance Corporation, 4.790%, due 06/22/99.... 4,573,138
------------
23,181,922
BANK OBLIGATIONS - 9.16%
12,000,000 Barclays Bank New York, 4.802%, due 06/02/99 (a)............ 11,999,225
7,000,000 Swiss Bank Corporation NY, 5.740%, due 06/11/99............. 6,999,952
5,000,000 Abbey National Treasury, 4.761%, due 06/15/99 (a)........... 4,999,363
10,000,000 Bayerische Landesbank NY, 4.768%, due 06/30/99 (a).......... 9,998,767
------------
33,997,307
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 43.86%
$ 3,000,000 Bank One NA, 5.740%, due 05/11/99........................... $ 2,999,953
7,000,000 U.S. Bank NA, 4.808%, due 05/20/99 (a)...................... 6,999,802
5,000,000 Merrill Lynch & Company, 4.863%, due 06/25/99 (a)........... 5,000,000
5,000,000 Corestates Capital Corporation, 5.001%, due 07/01/99 (a).... 5,000,182
13,000,000 J.P. Morgan & Company, 4.828%, due 07/07/99 (a)............. 12,998,589
5,000,000 First National Bank of Chicago, 4.809%, due 07/14/99 (a).... 4,999,451
3,000,000 John Deere Capital Corporation, 5.650%, due 08/06/99........ 2,999,521
5,000,000 Pepsico Incorporated, 4.810%, due 08/19/99 (a).............. 4,998,300
3,000,000 Norwest Corporation, 5.550%, due 08/31/99................... 2,999,519
6,000,000 G.E. Capital Corporation, 4.980%, due 09/08/99 (a).......... 6,000,000
5,000,000 IBM Credit Corporation, 4.950%, due 09/16/99 (a)............ 5,000,000
6,000,000 Key Bank NA, 5.015%, due 09/23/99 (a)....................... 5,998,808
5,000,000 Toyota Motor Credit Corporation, 4.970%, due 10/06/99 (a)... 4,999,361
2,000,000 Morgan Guaranty Trust, 5.750%, due 10/08/99................. 2,007,210
3,000,000 Toyota Motor Credit Corporation, 5.040%, due 10/19/99 (a)... 3,000,000
4,000,000 IBM Corporation, 4.950%, due 10/19/99 (a)................... 3,999,250
5,000,000 Caterpillar Financial Services Corporation, 4.980%, due
11/15/99 (a)................................................ 4,999,480
7,000,000 First Union National Bank, 5.020%, due 11/17/99 (a)......... 7,000,000
6,000,000 Goldman Sachs Group, 5.200%, due 01/07/00 (a)............... 6,000,000
6,000,000 Abbey National Treasury, 5.040%, due 02/08/00............... 5,998,430
6,000,000 PNC Bank NA, 5.040%, due 02/16/00........................... 5,995,126
7,000,000 Westpac Banking Corporation NY, 5.120%, due 02/23/00........ 6,993,696
5,000,000 Morgan Stanley Dean Witter Discover, 5.096%, due 03/02/00
(a)......................................................... 5,004,505
5,000,000 Texaco Capital Incorporated, 5.120%, due 03/15/00........... 4,998,321
5,000,000 Dow Chemical Company, 4.900%, due 03/15/00 (a).............. 4,997,865
6,820,000 Nationsbank NA, 4.950%, due 03/20/00 (a).................... 6,820,000
5,000,000 National City Bank, 4.888%, due 03/29/00 (a)................ 4,997,647
6,000,000 John Deere Capital Corporation, 4.884%, due 04/03/00 (a).... 5,995,056
3,000,000 Morgan Stanley Dean Witter Discover, 5.375%, due 04/07/00
(a)......................................................... 3,011,250
10,000,000 ABN AMRO Bank Chicago, 4.880%, due 04/20/00 (a)............. 9,994,297
------------
162,805,619
US GOVERNMENT AGENCY - 3.50%
8,000,000 Sallie Mae, 4.677%, due 08/02/99 (a)........................ 7,996,233
5,000,000 Federal Home Loan Bank, 4.966%, due 02/25/00................ 4,995,075
------------
12,991,308
------------
TOTAL INVESTMENTS - 99.6% ................ 369,648,331
OTHER ASSETS LESS LIABILITIES - 0.4% ..... 1,541,690
------------
NET ASSETS - 100.0% ...................... $371,190,021
============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
April 30, 1999.
See accompanying notes.
8
<PAGE> 9
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Cash...................................................... $ 2,728
Investments at amortized cost (Note 1).................... 369,648,331
Interest receivable....................................... 1,702,387
Prepaid expenses.......................................... 70,072
------------
TOTAL ASSETS............................................ 371,423,518
LIABILITIES:
Dividends payable (Note 2)................................ 45,793
Accrued expenses.......................................... 47,830
Payable to OLDE Asset Management, Inc..................... 139,874
------------
TOTAL LIABILITIES....................................... 233,497
------------
NET ASSETS applicable to 371,190,021 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $371,190,021
============
NET ASSET VALUE, offering and redemption price per share on
371,190,021 shares of beneficial interest outstanding..... $1.00
============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 9,375,835
EXPENSES:
Management fees........................................... 542,603
Transfer agent fees....................................... 236,247
Custodian fees............................................ 12,820
Professional fees......................................... 10,273
Accounting fees........................................... 8,250
Printing and postage...................................... 14,581
Trustee fees.............................................. 2,804
Insurance................................................. 4,156
Registration costs........................................ 40,783
12b-1 distribution costs.................................. 67,994
------------
TOTAL EXPENSES.......................................... 940,511
------------
NET INVESTMENT INCOME....................................... $ 8,435,324
============
</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, 1999 OCTOBER 31, 1998
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 8,435,324 $ 16,670,491
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (8,435,324) (16,670,491)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 542,177,174 945,132,831
Net asset value of shares issued in reinvestment of
dividends............................................... 8,095,193 15,892,318
------------- -------------
550,272,367 961,025,149
Cost of shares redeemed................................... (528,016,522) (902,053,911)
------------- -------------
Net increase in shareholders' equity from share
transactions............................................ 22,255,845 58,971,238
------------- -------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 22,255,845 58,971,238
SHAREHOLDERS' EQUITY:
At beginning of period.................................... 348,934,176 289,962,938
------------- -------------
At end of period.......................................... $ 371,190,021 $ 348,934,176
============= =============
</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, 1999 OCT. 31, 1998 OCT. 31, 1997 OCT. 31, 1996 OCT. 31, 1995
-------------- ------------- ------------- ------------- -------------
<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...... 0.0231 0.0519 0.0508 0.0490 0.0524
DISTRIBUTIONS:
Dividends from net
investment income........ (0.0231) (0.0519) (0.0508) (0.0490) (0.0524)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD..................... $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total return
(annualized)............. +4.71% +5.19% +5.08% +4.90% +5.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted).......... $371,190 $348,934 $289,963 $233,962 $178,203
Ratio of expenses to
average net assets....... 0.52% 0.50% 0.58% 0.70% 0.70%
Ratio of net investment
income to average net
assets................... 4.71% 5.19% 5.08% 4.90% 5.24%
</TABLE>
See accompanying notes.
10
<PAGE> 11
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 39.95%
$72,270,000 Paine Webber Group, 4.950%, due 05/03/99.................... $ 72,250,126
50,120,000 Salomon Smith Barney Holdings Incorporated, 4.860%, due
05/03/99.................................................... 50,106,468
36,865,000 DaimlerChrysler NA Holding Corporation, 4.830%, due
05/04/99.................................................... 36,850,162
41,200,000 Prudential Funding, 4.840%, due 05/04/99.................... 41,183,383
44,855,000 G.E. Capital Corporation, 4.840%, due 05/05/99.............. 44,830,878
34,270,000 G.E. Company, 4.840%, due 05/06/99.......................... 34,246,963
35,165,000 Sears Roebuck Acceptance Corporation, 4.860%, due
05/06/99.................................................... 35,141,264
42,000,000 Associates Corporation of NA, 4.830%, due 05/10/99.......... 41,949,285
43,385,000 Associates Corporation of NA, 4.830%, due 05/11/99.......... 43,326,792
10,095,000 Norwest Financial Incorporated, 4.850%, due 05/12/99........ 10,080,040
40,205,000 Morgan Stanley Dean Witter Discover, 4.850%, due 05/13/99... 40,140,002
40,000,000 Norwest Financial Incorporated, 4.850%, due 05/14/99........ 39,929,944
41,050,000 Sears Roebuck Acceptance Corporation, 4.860%, due
05/17/99.................................................... 40,961,332
43,360,000 Ford Motor Credit Company, 4.820%, due 05/18/99............. 43,261,308
14,835,000 General Motors Acceptance Corporation, 4.800%, due
05/19/99.................................................... 14,799,396
45,000,000 General Motors Acceptance Corporation, 4.800%, due
05/25/99.................................................... 44,856,000
22,410,000 Commercial Credit Corporation, 4.790%, due 05/26/99......... 22,335,456
17,855,000 Ford Motor Credit Company, 4.780%, due 05/26/99............. 17,795,731
47,650,000 G.E. Company, 4.810%, due 05/27/99.......................... 47,484,469
44,100,000 Commercial Credit Corporation, 4.810%, due 05/28/99......... 43,940,909
40,890,000 Bear Stearns Companies Incorporated, 4.840%, due 06/01/99... 40,719,580
40,000,000 J.P. Morgan & Company, 4.820%, due 06/03/99................. 39,823,267
40,000,000 J.P. Morgan & Company, 4.820%, due 06/04/99................. 39,817,911
41,265,000 Bear Stearns Companies Incorporated, 4.810%, due 06/08/99... 41,055,488
35,075,000 Ford Motor Credit Company, 4.780%, due 06/09/99............. 34,893,370
31,100,000 Salomon Smith Barney Holdings Incorporated, 4.810%, due
06/10/99.................................................... 30,933,787
24,000,000 Bear Stearns Companies Incorporated, 4.830%, due 06/18/99... 23,845,440
37,000,000 G.E. Capital Corporation, 4.936%, due 01/24/00 (a).......... 37,000,000
--------------
1,053,558,751
YANKEE COMMERCIAL PAPER - 5.56%
17,839,000 Toyota Motor Credit of P.R., 4.900%, due 05/07/99........... 17,824,432
10,000,000 Deutsche Bank Financial Incorporated, 4.790%, due
05/20/99.................................................... 9,974,719
38,045,000 FCE Bank PLC, 4.820%, due 05/21/99.......................... 37,943,124
45,000,000 BMW US Capital Corporation, 4.800%, due 05/24/99............ 44,862,000
36,160,000 American Honda Finance Corporation, 4.790%, due 06/22/99.... 35,909,813
--------------
146,514,088
BANK OBLIGATIONS - 7.62%
88,000,000 Barclays Bank New York, 4.802%, due 06/02/99 (a)............ 87,994,313
28,000,000 Swiss Bank Corporation NY, 5.740%, due 06/11/99............. 27,999,806
45,000,000 Abbey National Treasury, 4.761%, due 06/15/99 (a)........... 44,994,272
40,000,000 Bayerische Landesbank NY, 4.768%, due 06/30/99 (a).......... 39,995,069
--------------
200,983,460
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<S> <C> <C>
SHORT TERM NOTES - 44.93%
$30,000,000 General Motors Acceptance Corporation, 5.050%, due 05/07/99
(a)......................................................... $ 30,000,113
25,000,000 Key Bank NA, 4.865%, due 05/12/99 (a)....................... 24,999,429
25,000,000 First Bank NA Minneapolis, 4.948%, due 05/19/99 (a)......... 25,000,906
35,000,000 U.S. Bank NA, 4.808%, due 05/20/99 (a)...................... 34,999,012
30,000,000 Caterpillar Financial Services Corporation, 5.030%, due
06/07/99 (a)................................................ 30,000,992
45,000,000 Merrill Lynch & Company, 4.863%, due 06/25/99 (a)........... 45,000,000
19,000,000 J.P. Morgan & Company, 4.828%, due 07/07/99 (a)............. 18,997,938
20,000,000 American Honda Finance Corporation, 4.980%, due 07/08/99
(a)......................................................... 20,000,000
30,000,000 First National Bank of Chicago, 4.809%, due 07/14/99 (a).... 29,996,703
23,000,000 John Deere Capital Corporation, 5.650%, due 08/06/99........ 22,996,333
17,000,000 American Express Centurion Bank, 4.874%, due 08/18/99 (a)... 17,000,000
37,000,000 Pepsico Incorporated, 4.810%, due 08/19/99 (a).............. 36,987,418
25,000,000 American Express Centurion Bank, 4.868%, due 08/20/99 (a)... 25,000,000
37,000,000 Norwest Corporation, 5.550%, due 08/31/99................... 36,994,067
42,000,000 G.E. Capital Corporation, 4.980%, due 09/08/99 (a).......... 42,000,000
37,000,000 IBM Credit Corporation, 4.950%, due 09/16/99 (a)............ 37,000,000
36,000,000 Key Bank NA, 5.015%, due 09/23/99 (a)....................... 35,992,850
35,000,000 Toyota Motor Credit Corporation, 4.970%, due 10/06/99 (a)... 34,995,531
30,000,000 IBM Corporation, 4.950%, due 10/19/99 (a)................... 29,994,378
20,000,000 Toyota Motor Credit Corporation, 5.040%, due 10/19/99 (a)... 20,000,000
20,000,000 General Motors Acceptance Corporation, 4.956%, due 10/28/99
(a)......................................................... 19,988,908
35,000,000 Caterpillar Financial Services Corporation, 4.980%, due
11/15/99 (a)................................................ 34,996,358
33,000,000 First Union National Bank, 5.020%, due 11/17/99 (a)......... 33,000,000
25,000,000 John Deere Capital Corporation, 4.985%, due 12/10/99 (a).... 24,991,123
35,000,000 Goldman Sachs Group, 5.200%, due 01/07/00 (a)............... 35,000,000
15,000,000 Morgan Stanley Dean Witter Discover, 5.080%, due 01/20/00
(a)......................................................... 15,013,826
20,000,000 Abbey National Treasury, 5.040%, due 02/08/00............... 19,994,766
36,000,000 PNC Bank NA, 5.040%, due 02/16/00........................... 35,970,757
16,000,000 Merrill Lynch & Company, 5.190%, due 02/18/00 (a)........... 16,009,527
40,000,000 Westpac Banking Corporation NY, 5.120%, due 02/23/00........ 39,963,979
25,000,000 FCC National Bank, 4.970%, due 02/24/00 (a)................. 25,004,530
37,000,000 Morgan Stanley Dean Witter Discover, 5.096%, due 03/02/00
(a)......................................................... 37,033,337
40,000,000 Texaco Capital Incorporated, 5.120%, due 03/15/00........... 39,986,564
37,000,000 Dow Chemical Company, 4.900%, due 03/15/00 (a).............. 36,984,198
38,000,000 National City Bank, 4.888%, due 03/29/00 (a)................ 37,982,115
45,000,000 John Deere Capital Corporation, 4.884%, due 04/03/00 (a).... 44,962,917
40,000,000 ABN AMRO Bank Chicago, 4.880%, due 04/20/00 (a)............. 39,977,186
50,000,000 First Union National Bank, 5.100%, due 04/28/00 (a)......... 50,000,000
--------------
1,184,815,761
US GOVERNMENT AGENCY - 1.59%
32,000,000 Sallie Mae, 4.677%, due 08/02/99 (a)........................ 31,984,932
10,000,000 Federal Home Loan Bank, 4.966%, due 02/25/00................ 9,990,151
--------------
41,975,083
--------------
TOTAL INVESTMENTS - 99.7% ................ 2,627,847,143
OTHER ASSETS LESS LIABILITIES - 0.3% ..... 9,060,409
--------------
NET ASSETS - 100.0% ...................... $2,636,907,552
==============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
April 30, 1999.
See accompanying notes.
12
<PAGE> 13
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $2,627,847,143
Interest receivable....................................... 10,019,707
Prepaid expenses.......................................... 167,109
--------------
TOTAL ASSETS............................................ 2,638,033,959
LIABILITIES:
Dividends payable (Note 2)................................ 346,048
Accrued expenses.......................................... 286,979
Payable to OLDE Asset Management, Inc. ................... 493,380
--------------
TOTAL LIABILITIES....................................... 1,126,407
--------------
NET ASSETS applicable to 2,636,907,552 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $2,636,907,552
==============
NET ASSET VALUE, offering and redemption price per share on
2,636,907,552 shares of beneficial interest outstanding... $1.00
==============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 66,464,416
EXPENSES:
Management fees........................................... 1,930,429
Transfer agent fees....................................... 291,681
Custodian fees............................................ 65,862
Professional fees......................................... 10,193
Accounting fees........................................... 8,250
Printing and postage...................................... 17,790
Trustee fees.............................................. 19,529
Insurance................................................. 11,193
Registration costs........................................ 118,218
12b-1 distribution costs.................................. 872,933
--------------
TOTAL EXPENSES.......................................... 3,346,078
Expenses waived and reimbursed.............................. (772,173)
--------------
NET EXPENSES.............................................. 2,573,905
--------------
NET INVESTMENT INCOME....................................... $ 63,890,511
==============
</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, 1999 OCTOBER 31, 1998
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 63,890,511 $ 120,976,949
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (63,890,511) (120,976,949)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 2,354,116,443 3,921,475,038
Net asset value of shares issued in reinvestment of
dividends............................................... 62,365,003 117,405,508
--------------- ---------------
2,416,481,446 4,038,880,546
Cost of shares redeemed................................... (2,178,718,131) (3,707,015,547)
--------------- ---------------
Net increase in shareholders' equity from share
transactions............................................ 237,763,315 331,864,999
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 237,763,315 331,864,999
SHAREHOLDERS' EQUITY:
At beginning of period.................................... 2,399,144,237 2,067,279,238
--------------- ---------------
At end of period.......................................... $ 2,636,907,552 $ 2,399,144,237
=============== ===============
</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, 1999 OCT. 31, 1998 OCT. 31, 1997 OCT. 31, 1996 OCT. 31, 1995
-------------- ------------- ------------- ------------- -------------
<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..... . 0.0246 0.0548 0.0552 0.0560 0.0598
DISTRIBUTIONS:
Dividends from net
investment income........ (0.0246) (0.0548) (0.0552) (0.0560) (0.0598)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD..................... $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ==========
Total return
(annualized)............. +5.02% +5.48% +5.52% +5.60% +5.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted).......... $2,636,908 $2,399,144 $2,067,279 $1,825,480 $1,172,123
Ratio of expenses to
average net assets....... 0.20% 0.20% 0.14% -- --
Ratio of total expenses to
average net assets....... 0.26% 0.26% 0.27% 0.36% 0.37%
Ratio of net investment
income to average net
assets................... 5.02% 5.48% 5.52% 5.60% 5.98%
</TABLE>
See accompanying notes.
14
<PAGE> 15
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999
(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.
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%
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Advisory Agreement also provides for the Adviser to reimburse a series for
the aggregate expenses of a series (excluding taxes, brokerage fees, and, to the
extent permitted by state securities laws, extraordinary expenses) which exceed
2% of its first $10 million in assets, 1 1/2% of the next $20 million and 1% of
assets in excess of $30 million.
The Fund has an Accounting Service Agreement with the Adviser. Under the current
agreement, the Adviser receives a fixed fee of $1,375 per month for each series.
The Fund has a Shareholder Services Agreement with OLDE Discount Corporation
(OLDE Discount). Under the current agreement, OLDE Discount receives a fixed fee
of $24 per 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, 1999. For the six months ended April 30, 1999, the Fund made no direct
payments to its officers and affiliated trustees and incurred trustee fees of
$26,095 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 six months ended April 30, 1999, the
Series incurred total expenses of $3,346,078. OLDE Discount waived 12b-1
expenses of $772,173.
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, 1999, the annualized percentage rate of 12b-1
expense was .08% for OLDE Money Market Series, .04% for OLDE Premium Money
Market Series and .07% for OLDE Premium Plus Money Market Series.
6. INVESTMENT SECURITIES TRANSACTIONS
Investment securities transactions for the six months ended April 30, 1999 are
as follows:
OLDE Money Market Series:
Purchases: $1,402,299,471
Sales (including maturities): $1,348,030,000 OLDE Premium Money Market
Series:
Purchases: $972,850,856
Sales (including maturities): $954,385,000
OLDE Premium Plus Money Market Series:
Purchases: $6,662,249,416
Sales (including maturities): $6,452,220,025
7. BANK LINE OF CREDIT
At April 30, 1999 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, 1999.
8. YEAR 2000
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, Transfer
Agent and other third party vendors, and has taken steps reasonably designed to
assure the Fund 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 absolute assurances that the systems of the
Adviser, Transfer Agent and other 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 the modifications made to, and/or the replacements of,
systems, which have been accomplished by the Adviser, Transfer Agent and other
third party vendors, the Y2K issue will not pose material operational problems
for the Fund.
16
