<PAGE> 1
OLDE
CUSTODIAN FUND
ANNUAL REPORT
OCTOBER 31, 1999
OLDE MONEY
MARKET SERIES
OLDE PREMIUM
MONEY MARKET SERIES
OLDE PREMIUM PLUS
MONEY MARKET SERIES
[GRAPHIC OF BUILDING]
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.
<PAGE> 2
[TOP LOGO]
OLDE CUSTODIAN FUND
December 3, 1999
Dear Shareholder,
We are pleased to present the Annual Report for the year ending October 31,
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 past year has been characterized by periods of increasing volatility and
higher interest rates. Money market investments experienced a recent low in
yields early in 1999 as the Federal Reserve maintained the easing mode it
instituted in the fall of 1998. The U.S. economy's strong response to these
lower interest rates has lead to fears at the Fed that the economy is growing
too fast and this growth may foster inflation. As a result, the Fed has
initiated three twenty-five basis point increases in the fed funds rate since
June, reversing 1998's rate cuts. This leaves the current federal funds rate at
5.50%.
It is generally believed that no additional Federal Open Market Committee (FOMC)
tightening initiatives will transpire between now and year end. However, if the
economic data between now and the February 2, 2000 FOMC meeting do not show the
economy's growth rate slowing, further increases may result.
Money market fund investors are benefiting from these higher short-term interest
rates via increasing returns. The Adviser has positioned the portfolios to take
advantage of these higher rates by blending the maturities of its purchases.
This approach benefits from the relatively high yields for investments at both
ends of the money market maturity spectrum. Further, the strategy results in a
maturity neutral portfolio.
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
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OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 21.59%
$ 8,000,000 Salomon Smith Barney Holdings, 5.300%, due 11/02/99......... $ 7,998,822
7,610,000 Salomon Smith Barney Holdings, 5.300%, due 11/03/99......... 7,607,759
7,540,000 Daimler-Benz NA Corporation, 5.280%, due 11/04/99........... 7,536,682
5,540,000 G.E. Capital Services, 5.260%, due 11/05/99................. 5,536,762
5,965,000 Heller Financial Incorporated, 5.380%, due 11/08/99......... 5,958,760
4,980,000 Heller Financial Incorporated, 5.380%, due 11/10/99......... 4,973,302
7,790,000 Countrywide Home Loans, 5.320%, due 11/12/99................ 7,777,337
6,400,000 Toys R Us Incorporated, 5.490%, due 11/18/99................ 6,383,408
5,000,000 Bank of America Corporation, 5.780%, due 01/05/00........... 4,947,820
7,000,000 Household Finance Corporation, 5.740%, due 01/10/00......... 6,921,872
7,325,000 Household Finance Corporation, 5.740%, due 01/11/00......... 7,242,077
4,625,000 Chevron U.K., 5.780%, due 01/14/00.......................... 4,570,050
5,000,000 Citicorp, 5.750%, due 01/19/00.............................. 4,936,910
8,000,000 Morgan Stanley Dean Witter Discover, 5.610%, due 01/20/00
(a)......................................................... 8,000,000
9,000,000 G.E. Capital Corporation, 6.151%, due 01/24/00 (a).......... 9,000,000
6,000,000 American Express Credit Corporation, 5.730%, due 01/25/00... 5,918,825
------------
105,310,386
YANKEE COMMERCIAL PAPER - 20.93%
6,000,000 France Telecom, 5.320%, due 11/01/99........................ 6,000,000
6,615,000 France Telecom, 5.270%, due 11/09/99........................ 6,607,253
9,325,000 Toyota Motor Credit of Puerto Rico, 5.360%, due 11/16/99.... 9,304,174
6,000,000 WestPacTrust Securities NZ LTD, 5.370%, due 12/01/99........ 5,973,150
6,000,000 WestPacTrust Securities NZ LTD, 5.370%, due 12/02/99........ 5,972,255
6,000,000 WestPacTrust Securities NZ LTD, 5.370%, due 12/03/99........ 5,971,360
4,810,000 Deutsche Bank Financial Incorporated, 5.050%, due
12/07/99.................................................... 4,785,710
6,675,000 UBS Finance Delaware, 5.330%, due 12/17/99.................. 6,629,540
6,000,000 UBS Finance Delaware, 5.310%, due 12/20/99.................. 5,956,635
5,000,000 ANZ Delaware Incorporated, 5.330%, due 12/21/99............. 4,962,986
9,260,000 Bayerische Landesbank New York, 5.320%, due 12/22/99........ 9,190,210
7,000,000 Bayerische Landesbank New York, 5.320%, due 12/23/99........ 6,946,209
8,000,000 Royal Bank of Canada New York, 5.320%, due 12/29/99......... 7,931,431
6,000,000 Royal Bank of Canada New York, 5.320%, due 12/30/99......... 5,947,687
5,000,000 Deutsche Bank Financial Incorporated, 5.700%, due
01/04/00.................................................... 4,949,333
5,000,000 Deutsche Bank Financial Incorporated, 5.760%, due
01/18/00.................................................... 4,937,600
------------
102,065,533
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 53.33%
$10,000,000 Caterpiller Financial Services Corporation, 5.490%, due
11/15/99 (a)................................................ $ 9,999,928
10,000,000 First Union National Bank, 5.485%, due 11/17/99 (a)......... 10,000,000
5,000,000 CIT Group Incorporated, 5.875%, due 12/09/99................ 5,001,333
9,000,000 Goldman Sachs Group L.P., 6.330%, due 01/07/00 (a).......... 9,000,000
4,000,000 Bank of America NA, 5.860%, due 01/12/00.................... 4,000,000
4,000,000 Abbey National Treasury, 5.040%, due 02/08/00............... 3,999,634
4,000,000 Merrill Lynch & Company, 5.853%, due 02/15/00 (a)........... 4,004,466
8,000,000 PNC Bank NA, 5.040%, due 02/16/00........................... 7,997,610
12,000,000 American Express Centurion Bank, 5.369%, due 02/24/00 (a)... 12,000,000
8,000,000 Morgan Stanley Dean Witter Discover, 5.590%, due 03/02/00
(a)......................................................... 8,002,873
8,000,000 Bank of America NA, 5.500%, due 03/13/00 (a)................ 8,000,000
8,000,000 Dow Chemical Company, 5.410%, due 03/15/00 (a).............. 7,998,554
5,000,000 Texaco Capital Incorporated, 5.120%, due 03/15/00........... 4,999,290
8,000,000 Nationsbank NA, 5.463%, due 03/20/00 (a).................... 8,000,000
7,000,000 National City Bank, 5.388%, due 03/29/00 (a)................ 6,998,525
11,000,000 Ford Motor Credit Company, 7.500%, due 03/31/00............. 11,087,916
9,000,000 John Deere Capital Corporation, 5.384%, due 04/03/00 (a).... 8,996,621
6,000,000 First Bank NA (U.S. Bank NA), 5.458%, due 04/18/00 (a)...... 6,002,171
5,000,000 Texaco Capital Incorporated, 5.110%, due 05/03/00........... 4,998,281
8,000,000 Texaco Capital Incorporated, 5.193%, due 05/03/00 (a)....... 7,996,289
7,000,000 PNC Bank NA, 5.390%, due 05/26/00 (a)....................... 6,999,873
5,000,000 IBM Corporation, 6.375%, due 06/15/00....................... 5,015,912
11,000,000 John Deere Capital Corporation, 5.640%, due 06/19/00........ 11,000,000
10,000,000 Merrill Lynch & Company, 5.783%, due 06/21/00 (a)........... 10,018,745
5,000,000 J.P. Morgan & Company, 5.530%, due 06/23/00 (a)............. 5,000,000
5,000,000 Merrill Lynch & Company, 6.016%, due 06/26/00 (a)........... 5,016,319
8,000,000 National Rural Utilities CFC, 5.476%, due 06/26/00 (a)...... 8,000,000
4,000,000 DaimlerChrysler NA Holding Corporation, 5.296%, due 07/06/00
(a)......................................................... 3,996,735
8,000,000 Toyota Motor Credit Corporation, 5.770%, due 07/06/00....... 8,000,000
8,000,000 Norwest Financial Incorporated, 5.425%, due 07/07/00 (a).... 7,997,604
4,000,000 American Express Centurion Bank, 5.500%, due 07/13/00 (a)... 4,000,000
5,000,000 Paccar Financial Corporation, 5.540%, due 07/17/00.......... 4,996,438
9,000,000 Xerox Capital Europe, 6.131%, due 07/19/00 (a).............. 8,996,088
10,000,000 IBM Credit Corporation, 5.580%, due 07/26/00................ 9,989,236
8,000,000 Ford Motor Credit Company, 5.435%, due 08/18/00 (a)......... 7,994,847
4,000,000 Bank One NA, 6.170%, due 10/16/00........................... 3,998,535
------------
260,103,823
US GOVERNMENT - 1.64%
8,000,000 U.S. Treasury Note, 5.625%, due 12/31/99.................... 8,008,803
------------
8,008,803
US GOVERNMENT AGENCY - 2.05%
10,000,000 Federal Home Loan Bank, 4.966%, due 02/25/00................ 9,996,192
------------
9,996,192
------------
TOTAL
INVESTMENTS - 99.5%... 485,484,737
OTHER ASSETS LESS
LIABILITIES - 0.5%.... 2,282,078
------------
NET ASSETS - 100%..... $487,766,815
============
</TABLE>
(a)- Variable rate securities. The rates shown are the current rates as of
October 31, 1999.
See accompanying notes.
4
<PAGE> 5
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OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $485,484,737
Cash...................................................... 1,846
Interest receivable....................................... 2,814,087
Prepaid expenses.......................................... 55,786
------------
TOTAL ASSETS............................................ 488,356,456
LIABILITIES:
Dividends payable (Note 2)................................ 187,899
Accrued expenses.......................................... 279,262
Payable to OLDE Asset Management, Inc..................... 122,480
------------
TOTAL LIABILITIES....................................... 589,641
------------
NET ASSETS applicable to 487,766,815 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $487,766,815
============
NET ASSET VALUE, offering and redemption price per share on
487,766,815 shares of beneficial interest outstanding..... $1.00
============
</TABLE>
OLDE MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 26,258,778
EXPENSES:
Management fees........................................... 2,524,172
Transfer agent fees....................................... 1,513,970
Custodian fees............................................ 35,007
Professional fees......................................... 24,728
Accounting fees........................................... 16,500
Printing and postage...................................... 94,901
Trustee fees.............................................. 7,690
Insurance................................................. 8,184
Registration costs........................................ 110,847
12b-1 distribution costs.................................. 214,324
------------
TOTAL EXPENSES.......................................... 4,550,323
------------
NET INVESTMENT INCOME....................................... $ 21,708,455
============
</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
1999 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 21,708,455 $ 20,175,580
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (21,708,455) (20,175,580)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 2,158,159,629 1,786,852,279
Net asset value of shares issued in reinvestment of
dividends............................................... 20,486,319 19,037,821
--------------- ---------------
2,178,645,948 1,805,890,100
Cost of shares redeemed................................... (2,146,795,037) (1,753,141,583)
--------------- ---------------
Net increase in shareholders' equity from share
transactions............................................ 31,850,911 52,748,517
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 31,850,911 52,748,517
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 455,915,904 403,167,387
--------------- ---------------
At end of year............................................ $ 487,766,815 $ 455,915,904
=============== ===============
</TABLE>
OLDE MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<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........................ 0.0439 0.0476 0.0470 0.0460 0.0487
DISTRIBUTIONS:
Dividends from net investment income......... 0.0439 (0.0476) (0.0470) (0.0460) (0.0487)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return(annualized)..................... +4.39% +4.76% +4.70% +4.60% +4.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted).... $487,767 $455,916 $403,167 $373,147 $313,232
Ratio of expenses to average net assets...... 0.90% 0.91% 0.95% 1.00% 1.07%
Ratio of net investment income
to average net assets........................ 4.39% 4.76% 4.70% 4.60% 4.87%
</TABLE>
See accompanying notes.
6
<PAGE> 7
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OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 20.10%
$ 4,290,000 Paccar Financial Corporation, 5.280%, due 11/01/99.......... $ 4,290,000
4,000,000 Salomon Smith Barney Holdings, 5.300%, due 11/02/99......... 3,999,411
4,635,000 Ford Motor Credit of Puerto Rico, 5.280%, due 11/04/99...... 4,632,961
4,500,000 Heller Financial Incorporated, 5.380%, due 11/08/99......... 4,495,292
5,840,000 Ford Motor Credit Company, 5.260%, due 11/10/99............. 5,832,320
6,890,000 Countrywide Home Loans, 5.320%, due 11/12/99................ 6,878,800
4,605,000 National Rural Utilities CFC, 5.300%, due 12/13/99.......... 4,576,526
5,000,000 Bank of America Corporation, 5.780%, due 01/05/00........... 4,947,819
4,810,000 Household Finance Corporation, 5.740%, due 01/10/00......... 4,756,315
5,110,000 Citicorp, 5.750%, due 01/19/00.............................. 5,045,522
6,000,000 Morgan Stanley Dean Witter Discover, 5.610%, due 01/20/00
(a)......................................................... 6,000,000
5,355,000 Citicorp, 5.750%, due 01/21/00.............................. 5,285,720
4,000,000 G.E. Capital Corporation, 6.151%, due 01/24/00 (a).......... 4,000,000
5,920,000 Chevron U.K., 5.800%, due 01/25/00.......................... 5,838,929
2,640,000 Chevron U.K., 5.780%, due 01/26/00.......................... 2,603,548
------------
73,183,163
YANKEE COMMERCIAL PAPER - 15.45%
3,925,000 Hitachi Credit American Corporation, 5.400%, due 11/05/99... 3,922,645
5,500,000 France Telecom, 5.270%, due 11/09/99........................ 5,493,559
4,000,000 WestPacTrust Securities NZ LTD, 5.370%, due 12/01/99........ 3,982,100
6,330,000 Deutsche Bank Financial Incorporated, 5.040%, due
12/06/99.................................................... 6,298,983
6,730,000 Deutsche Bank Financial Incorporated, 5.050%, due
12/07/99.................................................... 6,696,014
4,000,000 UBS Finance Delaware, 5.330%, due 12/20/99.................. 3,970,981
5,000,000 ANZ Delaware Incorporated, 5.330%, due 12/21/99............. 4,962,986
4,130,000 Bayerische Landesbank New York, 5.320%, due 12/23/99........ 4,098,263
6,000,000 Royal Bank of Canada New York, 5.320%, due 12/29/99......... 5,948,573
6,000,000 Royal Bank of Canada New York, 5.320%, due 12/30/99......... 5,947,687
5,000,000 Deutsche Bank Financial Incorporated, 5.760%, due
01/18/00.................................................... 4,937,600
------------
56,259,391
BANK OBLIGATIONS - 10.31%
6,970,000 First Tennessee Bank NA, 5.350%, due 11/03/99............... 6,970,000
5,575,000 First Tennessee Bank NA, 5.350%, due 11/05/99............... 5,575,000
5,000,000 Bayerische Landesbank New York, 5.400%, due 12/09/99........ 5,000,000
5,000,000 Bayerische Landesbank New York, 5.900%, due 01/03/00........ 5,000,000
5,000,000 Rabobank Nederland New York, 5.310%, due 05/30/00........... 4,998,749
5,000,000 UBS AG Stamford, 5.410%, due 06/01/00....................... 4,998,599
5,000,000 UBS AG Stamford, 5.600%, due 06/26/00....................... 4,998,438
------------
37,540,786
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 49.94%
$ 5,000,000 Caterpiller Financial Services Corporation, 5.490%, due
11/15/99 (a)................................................ $ 4,999,964
7,000,000 First Union National Bank, 5.485%, due 11/17/99 (a)......... 7,000,000
6,000,000 Goldman Sachs Group L.P., 6.330%, due 01/07/00 (a).......... 6,000,000
6,000,000 Abbey National Treasury, 5.040%, due 02/08/00............... 5,999,451
6,000,000 PNC Bank NA, 5.040%, due 02/16/00........................... 5,998,208
7,000,000 Westpac Banking Corporation New York, 5.120%, due
02/23/00.................................................... 6,997,588
8,000,000 American Express Centurion Bank, 5.369%, due 02/24/00 (a)... 8,000,000
5,000,000 Morgan Stanley Dean Witter Discover, 5.590%, due 03/02/00
(a)......................................................... 5,001,796
6,000,000 Bank of America NA, 5.500%, due 03/13/00 (a)................ 6,000,000
5,000,000 Dow Chemical Company, 5.410%, due 03/15/00 (a).............. 4,999,096
5,000,000 Texaco Capital Incorporated, 5.120%, due 03/15/00........... 4,999,290
6,820,000 Nationsbank NA, 5.463%, due 03/20/00 (a).................... 6,820,000
5,000,000 National City Bank, 5.388%, due 03/29/00 (a)................ 4,998,947
6,000,000 John Deere Capital Corporation, 5.384%, due 04/03/00 (a).... 5,997,747
3,000,000 Morgan Stanley Dean Witter Discover, 5.885%, due 04/07/00
(a)......................................................... 3,005,197
3,000,000 First Bank NA (U.S. Bank NA), 5.458%, due 04/18/00 (a)...... 3,001,085
10,000,000 ABN AMRO Bank Chicago, 5.380%, due 04/20/00 (a)............. 9,997,253
3,000,000 Texaco Capital Incorporated, 5.110%, due 05/03/00........... 2,998,969
6,000,000 Texaco Capital Incorporated, 5.193%, due 05/03/00 (a)....... 5,997,217
5,000,000 PNC Bank NA, 5.390%, due 05/26/00 (a)....................... 4,999,910
8,000,000 Chrysler Financial Corporation, 5.378%, due 06/09/00 (a).... 7,999,971
4,000,000 IBM Corporation, 6.375%, due 06/15/00....................... 4,012,729
2,000,000 John Deere Capital Corporation, 5.640%, due 06/19/00........ 2,000,000
4,000,000 J.P. Morgan & Company, 5.530%, due 06/23/00 (a)............. 4,000,000
5,000,000 National Rural Utilities CFC, 5.476%, due 06/26/00 (a)...... 5,000,000
3,000,000 DaimlerChrysler NA Holding Corporation, 5.296%, due 07/06/00
(a)......................................................... 2,997,551
2,000,000 Toyota Motor Credit Corporation, 5.770%, due 07/06/00....... 2,000,000
5,000,000 Norwest Financial Incorporated, 5.425%, due 07/07/00 (a).... 4,998,502
5,000,000 American Express Centurion Bank, 5.500%, due 07/13/00 (a)... 5,000,000
8,000,000 Key Bank NA, 5.490%, due 07/14/00 (a)....................... 7,997,263
6,000,000 Xerox Capital Europe, 6.131%, due 07/19/00 (a).............. 5,997,392
7,000,000 IBM Credit Corporation, 5.580%, due 07/26/00................ 6,992,465
6,000,000 Ford Motor Credit Company, 5.435%, due 08/18/00 (a)......... 5,996,135
3,000,000 Bank One NA, 6.170%, due 10/16/00........................... 2,998,902
------------
181,802,628
US GOVERNMENT - 2.20%
8,000,000 U.S. Treasury Note, 5.625%, due 12/31/99.................... 8,008,803
------------
8,008,803
US GOVERNMENT AGENCY - 1.37%
5,000,000 Federal Home Loan Bank, 4.966%, due 02/25/00................ 4,998,096
------------
4,998,096
------------
TOTAL INVESTMENTS -
99.4% ................ 361,792,867
OTHER ASSETS LESS
LIABILITIES - 0.6% ... 2,255,700
------------
NET ASSETS - 100% .... $364,048,567
============
</TABLE>
(a)- Variable rate securities. The rates shown are the current rates as of
October 31, 1999.
See accompanying notes.
8
<PAGE> 9
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $361,792,867
Cash...................................................... 1,662
Interest receivable....................................... 2,535,079
Prepaid expenses.......................................... 32,643
------------
TOTAL ASSETS............................................ 364,362,251
LIABILITIES:
Dividends payable (Note 2)................................ 149,416
Accrued expenses.......................................... 50,112
Payable to OLDE Asset Management, Inc..................... 114,156
------------
TOTAL LIABILITIES....................................... 313,684
------------
NET ASSETS applicable to 364,048,567 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $364,048,567
============
NET ASSET VALUE, offering and redemption price per share on
364,048,567 shares of beneficial interest outstanding..... $1.00
============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 19,112,146
EXPENSES:
Management fees........................................... 1,100,534
Transfer agent fees....................................... 485,305
Custodian fees............................................ 22,272
Professional fees......................................... 24,728
Accounting fees........................................... 16,500
Printing and postage...................................... 30,288
Trustee fees.............................................. 5,580
Insurance................................................. 7,561
Registration costs........................................ 96,937
12b-1 distribution costs.................................. 117,888
------------
TOTAL EXPENSES.......................................... 1,907,593
------------
NET INVESTMENT INCOME....................................... $ 17,204,553
============
</TABLE>
See accompanying notes.
9
<PAGE> 10
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1999 1998
--------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 17,204,553 $ 16,670,491
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (17,204,553) (16,670,491)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 1,011,820,864 945,132,831
Net asset value of shares issued in reinvestment of
dividends............................................... 16,421,277 15,892,318
--------------- -------------
1,028,242,141 961,025,149
Cost of shares redeemed................................... (1,013,127,750) (902,053,911)
--------------- -------------
Net increase in shareholders' equity from share
transactions............................................ 15,114,391 58,971,238
--------------- -------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 15,114,391 58,971,238
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 348,934,176 289,962,938
--------------- -------------
At end of year............................................ $ 364,048,567 $ 348,934,176
=============== =============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<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..................... 0.0479 0.0519 0.0508 0.0490 0.0524
DISTRIBUTIONS:
Dividends from net investment income...... (0.0479) (0.0519) (0.0508) (0.0490) (0.0524)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR................ $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total return(annualized).................. +4.79% +5.19% +5.08% +4.90% +5.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)................................ $364,049 $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................................ 4.79% 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
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
DOMESTIC COMMERCIAL PAPER - 22.32%
$40,000,000 Countrywide Home Loans, 5.300%, due 11/01/99................ $ 40,000,000
26,510,000 Household Finance Corporation, 5.280%, due 11/02/99......... 26,506,112
28,770,000 Ford Motor Credit of Puerto Rico, 5.280%, due 11/04/99...... 28,757,341
30,025,000 Heller Financial Incorporated, 5.380%, due 11/08/99......... 29,993,591
16,540,000 Heller Financial Incorporated, 5.380%, due 11/10/99......... 16,517,754
22,755,000 Sears Roebuck Acceptance Corporation, 5.330%, due
11/12/99.................................................... 22,717,941
40,000,000 Toys R Us Incorporated, 5.500%, due 11/17/99................ 39,902,222
42,420,000 Sears Roebuck Acceptance Corporation, 5.350%, due
11/19/99.................................................... 42,306,526
25,000,000 Ford Motor Credit of Puerto Rico, 5.910%, due 01/03/00...... 24,741,438
25,000,000 Bank of America Corporation, 5.780%, due 01/05/00........... 24,739,097
16,010,000 Household Finance Corporation, 5.740%, due 01/10/00......... 15,831,311
13,575,000 Morgan Stanley Dean Witter Discover, 6.100%, due 01/10/00... 13,413,985
43,570,000 Prudential Funding, 5.770%, due 01/11/00.................... 43,074,185
37,580,000 Prudential Funding, 5.780%, due 01/13/00.................... 37,139,542
30,565,000 Citicorp, 5.750%, due 01/19/00.............................. 30,179,329
36,000,000 Morgan Stanley Dean Witter Discover, 5.610%, due 01/20/00
(a)......................................................... 36,000,000
15,000,000 Chevron U.K., 5.800%, due 01/21/00.......................... 14,804,250
19,525,000 Citicorp, 5.750%, due 01/21/00.............................. 19,272,395
37,000,000 G.E. Capital Corporation, 6.151%, due 01/24/00 (a).......... 37,000,000
26,620,000 American Express Credit Corporation, 5.730%, due 01/25/00... 26,259,854
22,285,000 Chevron U.K., 5.780%, due 01/26/00.......................... 21,977,294
--------------
591,134,167
YANKEE COMMERCIAL PAPER - 20.04%
23,000,000 Hitachi Credit American Corporation, 5.400%, due 11/05/99... 22,986,200
31,560,000 France Telecom, 5.270%, due 11/09/99........................ 31,523,040
15,000,000 CBA Delaware Finance Incorporated, 5.350%, due 12/01/99..... 14,933,125
10,000,000 WestPacTrust Securities NZ LTD, 5.370%, due 12/01/99........ 9,955,250
25,000,000 WestPacTrust Securities NZ LTD, 5.370%, due 12/02/99........ 24,884,396
25,000,000 WestPacTrust Securities NZ LTD, 5.370%, due 12/03/99........ 24,880,667
40,000,000 Deutsche Bank Financial Incorporated, 5.040%, due
12/06/99.................................................... 39,804,000
39,960,000 Deutsche Bank Financial Incorporated, 5.050%, due
12/07/99.................................................... 39,758,202
25,000,000 WestPacTrust Securities NZ LTD, 5.370%, due 12/08/99........ 24,862,021
33,365,000 UBS Finance Delaware, 5.330%, due 12/17/99.................. 33,137,766
25,000,000 UBS Finance Delaware, 5.330%, due 12/20/99.................. 24,818,632
25,000,000 ANZ Delaware Incorporated, 5.330%, due 12/21/99............. 24,814,931
40,740,000 Bayerische Landesbank New York, 5.320%, due 12/22/99........ 40,432,956
36,645,000 Bayerische Landesbank New York, 5.320%, due 12/23/99........ 36,363,404
51,000,000 Royal Bank of Canada New York, 5.320%, due 12/29/99......... 50,562,873
38,000,000 Royal Bank of Canada New York, 5.320%, due 12/30/99......... 37,668,682
20,000,000 Deutsche Bank Financial Incorporated, 5.700%, due
01/04/00.................................................... 19,797,333
30,000,000 Deutsche Bank Financial Incorporated, 5.760%, due
01/18/00.................................................... 29,625,600
--------------
530,809,078
BANK OBLIGATIONS - 7.72%
30,000,000 Bayerische Landesbank New York, 5.400%, due 12/09/99........ 30,000,000
20,000,000 Bayerische Landesbank New York, 5.900%, due 01/03/00........ 20,000,000
33,215,000 First Tennessee Bank NA, 5.350%, due 11/03/99............... 33,215,000
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
BANK OBLIGATIONS - (CONTINUED)
$36,315,000 First Tennessee Bank NA, 5.350%, due 11/05/99............... $ 36,315,000
20,000,000 Rabobank Nederland NY, 5.310%, due 05/30/00................. 19,995,000
20,000,000 UBS AG Stamford, 5.410%, due 06/01/00....................... 19,994,394
25,000,000 UBS AG Stamford, 5.600%, due 06/14/00....................... 24,993,316
20,000,000 UBS AG Stamford, 5.600%, due 06/26/00....................... 19,993,750
--------------
204,506,460
SHORT TERM NOTES - 46.45%
35,000,000 Caterpiller Financial Services Corporation, 5.490%, due
11/15/99 (a)................................................ 34,999,742
33,000,000 First Union National Bank, 5.485%, due 11/17/99 (a)......... 33,000,000
25,000,000 John Deere Capital Corporation, 5.504%, due 12/10/99 (a).... 24,998,447
35,000,000 Goldman Sachs Group L.P., 6.330%, due 01/07/00 (a).......... 35,000,000
28,350,000 Bank of America NA, 5.860%, due 01/12/00.................... 28,349,952
15,000,000 Morgan Stanley Dean Witter Discover, 6.278%, due 01/20/00
(a)......................................................... 15,004,190
20,000,000 Abbey National Treasury, 5.040%, due 02/08/00............... 19,998,169
36,000,000 PNC Bank NA, 5.040%, due 02/16/00........................... 35,989,247
16,000,000 Merrill Lynch & Company, 5.590%, due 02/18/00 (a)........... 16,003,544
40,000,000 Westpac Banking Corporation NY, 5.120%, due 02/23/00........ 39,986,220
30,000,000 American Express Centurion Bank, 5.369%, due 02/24/00 (a)... 30,000,000
25,000,000 FCC National Bank, 5.450%, due 02/24/00 (a)................. 25,001,743
37,000,000 Morgan Stanley Dean Witter Discover, 5.590%, due 03/02/00
(a)......................................................... 37,013,292
36,000,000 Bank of America NA, 5.500%, due 03/13/00 (a)................ 36,000,000
37,000,000 Dow Chemical Company, 5.410%, due 03/15/00 (a).............. 36,993,313
40,000,000 Texaco Capital Incorporated, 5.120%, due 03/15/00........... 39,994,314
10,000,000 Morgan Stanley Dean Witter Discover, 5.890%, due 03/20/00... 10,011,293
38,000,000 National City Bank, 5.388%, due 03/29/00 (a)................ 37,991,998
4,000,000 Ford Motor Credit Company, 7.500%, due 03/31/00............. 4,031,969
45,000,000 John Deere Capital Corporation, 5.384%, due 04/03/00 (a).... 44,983,104
25,000,000 First Bank NA (U.S. Bank NA), 5.458%, due 04/18/00 (a)...... 25,009,044
40,000,000 ABN AMRO Bank Chicago, 5.380%, due 04/20/00 (a)............. 39,989,009
50,000,000 First Union National Bank, 5.500%, due 04/28/00 (a)......... 50,000,000
42,000,000 Texaco Capital Incorporated, 5.110%, due 05/03/00........... 41,985,561
36,000,000 Texaco Capital Incorporated, 5.193%, due 05/03/00 (a)....... 35,983,301
13,000,000 PNC Bank NA, 5.390%, due 05/26/00 (a)....................... 12,999,765
10,000,000 IBM Corporation, 6.375%, due 06/15/00....................... 10,031,823
12,000,000 John Deere Capital Corporation, 5.640%, due 06/19/00........ 12,000,000
16,000,000 J.P. Morgan & Company, 5.530%, due 06/23/00 (a)............. 16,000,000
45,000,000 National Rural Utilities CFC, 5.476%, due 06/26/00 (a)...... 45,000,000
18,000,000 DaimlerChrysler NA Holding Corporation, 5.296%, due 07/06/00
(a)......................................................... 17,985,305
40,000,000 Toyota Motor Credit Corporation, 5.770%, due 07/06/00....... 40,000,000
37,000,000 Norwest Financial Incorporated, 5.425%, due 07/07/00 (a).... 36,988,918
16,000,000 American Express Centurion Bank, 5.500%, due 07/13/00 (a)... 16,000,000
42,000,000 Key Bank NA, 5.490%, due 07/14/00 (a)....................... 41,985,632
10,000,000 Paccar Financial Corporation, 5.540%, due 07/17/00.......... 9,992,876
45,000,000 Xerox Capital Europe, 6.131%, due 07/19/00 (a).............. 44,980,441
48,000,000 IBM Credit Corporation, 5.580%, due 07/26/00................ 47,948,333
25,000,000 Goldman Sachs Group, 5.459%, due 08/09/00 (a)............... 25,000,000
36,000,000 Ford Motor Credit Company, 5.435%, due 08/18/00 (a)......... 35,976,810
18,000,000 Bank One NA, 6.170%, due 10/16/00........................... 17,993,409
21,000,000 John Deere Capital Corporation, 6.250%, due 10/25/00........ 20,992,337
--------------
1,230,193,101
</TABLE>
12
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
US GOVERNMENT - 2.52%
$34,000,000 U.S. Treasury Note, 5.625%, due 12/31/99.................... $ 34,037,412
32,565,000 U.S. Treasury Note, 7.750%, due 12/31/99.................... 32,702,162
--------------
66,739,574
US GOVERNMENT AGENCY - 0.38%
10,000,000 Federal Home Loan Bank, 4.966%, due 02/25/00................ 9,996,192
--------------
9,996,192
--------------
TOTAL INVESTMENTS -
99.4%................. 2,633,378,572
OTHER ASSETS LESS
LIABILITIES - 0.6%.... 15,072,158
--------------
NET ASSETS - 100%..... $2,648,450,730
==============
</TABLE>
(a) - Variable rate securities. The rates shown are the current rates as of
October 31, 1999.
See accompanying notes.
13
<PAGE> 14
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $2,633,378,572
Interest receivable....................................... 16,859,455
Prepaid expenses.......................................... 77,261
--------------
TOTAL ASSETS............................................ 2,650,315,288
LIABILITIES:
Dividends payable (Note 2)................................ 1,164,488
Accrued expenses.......................................... 260,676
Payable to OLDE Asset Management.......................... 439,394
--------------
TOTAL LIABILITIES....................................... 1,864,558
--------------
NET ASSETS applicable to 2,648,450,730 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $2,648,450,730
==============
NET ASSET VALUE, offering and redemption price per share
on 2,648,450,730 shares of beneficial interest
outstanding............................................... $1.00
==============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 136,803,642
EXPENSES:
Management fees........................................... 3,942,239
Transfer agent fees....................................... 591,147
Custodian fees............................................ 151,820
Professional fees......................................... 24,728
Accounting fees........................................... 16,500
Printing and postage...................................... 36,740
Trustee fees.............................................. 40,297
Insurance................................................. 21,898
Registration costs........................................ 239,609
12b-1 distribution costs.................................. 1,768,237
--------------
TOTAL EXPENSES............................................ 6,833,215
Expenses waived and reimbursed............................ (1,576,898)
--------------
NET EXPENSES.............................................. 5,256,317
--------------
NET INVESTMENT INCOME....................................... $ 131,547,325
==============
</TABLE>
See accompanying notes.
14
<PAGE> 15
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1999 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 131,547,325 $ 120,976,949
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (131,547,325) (120,976,949)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 4,221,923,872 3,921,475,038
Net asset value of shares issued in reinvestment of
dividends............................................... 127,771,342 117,405,508
--------------- ---------------
4,349,695,214 4,038,880,546
Cost of shares redeemed................................... (4,100,388,721) (3,707,015,547)
--------------- ---------------
Net increase in shareholders' equity from share
transactions............................................ 249,306,493 331,864,999
--------------- ---------------
NET INCREASE IN SHAREHOLDERS' EQUITY........................ 249,306,493 331,864,999
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 2,399,144,237 2,067,279,238
--------------- ---------------
At end of year............................................ $ 2,648,450,730 $ 2,399,144,237
=============== ===============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<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................... 0.0512 0.0548 0.0552 0.0560 0.0598
DISTRIBUTIONS:
Dividends from net investment income.... (0.0512) (0.0548) (0.0552) (0.0560) (0.0598)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR.............. $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ==========
Total return(annualized)................ +5.12% +5.48% +5.52% +5.60% +5.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)................................ $2,648,451 $2,399,144 $2,067,279 $1,825,480 $1,172,123
Ratio of net 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...................... 5.12% 5.48% 5.52% 5.60% 5.98%
</TABLE>
See accompanying notes.
15
<PAGE> 16
- --------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999
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
16
<PAGE> 17
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 Advisor. Under the current
agreement, the Adviser receives a fixed fee of $1,375 per month for each series.
The Fund has a Shareholder Services Agreement with OLDE Discount Corporation
(OLDE Discount). Under the current agreement, OLDE Discount receives a fixed fee
of $24 per beneficial account per annum.
The Fund has an Underwriting Agreement with OLDE Discount. As underwriter for
the Fund, OLDE Discount received no commissions for the year ended October 31,
1999. For the year ended October 31, 1999, the Fund made no direct payments to
its officers and affiliated trustees and incurred trustee fees of $53,567 to
unaffiliated trustees.
Effective January 1, 1997 through January 1, 2001, 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, 1999, the
Series incurred total expenses of $6,833,215. OLDE Discount waived 12b-1
expenses of $1,576,898.
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, 1999, the annualized percentage rate of 12b-1
expense was (.04% for OLDE Money Market Series, .03% for OLDE Premium Money
Market Series and .07 % for OLDE Premium Plus Money Market Series.)
6. INVESTMENT SECURITIES TRANSACTIONS
Investment securities transactions for the year ended October 31, 1999 are as
follows:
OLDE Money Market Series:
Purchases: $2,921,931,741
Sales (including maturities): $2,902,382,117
OLDE Premium Money Market Series:
Purchases: $2,071,601,060
Sales (including maturities): $2,064,202,000
OLDE Premium Plus Money Market Series:
Purchases: $14,037,498,961
Sales (including maturities): $13,848,360,206
7. BANK LINE OF CREDIT
At October 31, 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 were no
borrowings during the year and none outstanding as of October 31, 1999.
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, 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
those systems 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.
17
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
9. SUBSEQUENT EVENT
On December 1, 1999, H&R Block Financial Corporation acquired OLDE Financial
Corporation which was the holding company for the Adviser, OLDE Asset
Management, Inc. The Investment Company Act of 1940 requires the shareholders of
each of the three series of OLDE Custodian Fund to approve new investment
advisory agreements with the Adviser as a result of a change in control of the
parent holding company. Shareholders of record at the close of business on
December 6, 1999 are entitled to vote at a Special Meeting of the Shareholders
to be held on January 18, 2000 at 10:00 a.m., Detroit Time, adjacent to the
offices of the Trust, 131 West Lafayette Boulevard, Detroit, Michigan 48226. The
Notice and Proxy Statement are scheduled to be mailed to Shareholders of record
on or about December 13, 1999.
18
<PAGE> 19
---------------------------------------------------------------------
[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, 1999, 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, 1999, 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, 1999, 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 24, 1999
ERNST & YOUNG LLP SIGNATURE
19
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