<PAGE> 1
INVESTMENT ADVISER
OLDE ASSET MANAGEMENT, INC.
PRINCIPAL UNDERWRITER
H&R BLOCK FINANCIAL ADVISORS, INC.
CUSTODIAN
THE BANK OF NEW YORK
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
TRANSFER AGENT
H&R BLOCK FINANCIAL ADVISORS, INC.
For information regarding your
account, telephone your local
H&R Block Financial Advisors branch office
or
H&R Block Financial Advisors
Customer Service
at: 1-800-235-3100
This report is authorized for use by
nonshareholders only when accompanied or
preceded by a current prospectus of
OLDE Custodian Fund.
OLDE
CUSTODIAN FUND
ANNUAL REPORT
OCTOBER 31, 2000
OLDE MONEY
MARKET SERIES
OLDE PREMIUM
MONEY MARKET SERIES
OLDE PREMIUM PLUS
MONEY MARKET SERIES
12/00
GRAPHIC OF BUILDING
<PAGE> 2
[TOP LOGO]
OLDE CUSTODIAN FUND
December 20, 2000
Dear Shareholder,
We are pleased to present the Annual Report for the period ending October 31,
2000 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 audited schedules of investments and financial statements
for all three series.
This past spring the U.S. economy was growing at an annual rate at or exceeding
6.0%. The economy's growth was the result of a strong response from consumers
and businesses to the interest rate cuts initiated by the Federal Reserve Board
(the "Fed") in 1998. However, in an attempt to slow the economy and fend off
potential inflationary pressures, the Fed subsequently began an aggressive shift
in policy which resulted in six consecutive increases in the federal funds rate
beginning in July, 1999. These increases culminated this past May with the
federal funds rate rising to 6.50%.
It is now apparent that these rate increases have been successful in slowing the
economy's growth to a more manageable pace. Despite little evidence of
inflation, the Fed has maintained its interest rate policy. This has benefited
money fund investors in a time when equity prices have weakened and longer term
interest rates have moved to relatively low levels.
With evidence of an ever weaker economy, the pressure is mounting on the Fed to
lower interest rates to bolster consumer confidence and fend off a potential
recession. Consequently, yields on money market investments may be lower as we
enter 2001 with the Fed adopting a bias likely leading to decreases in the
benchmark federal funds rate. These decreases should begin in the first quarter,
with a high probability of two reductions by the spring.
While lower yields are likely in the coming year, there are strategies to
mitigate the anticipated reduction in yields. A weakening economic environment
normally leads to a widening of credit spreads as investors sell securities they
perceive to have increased risks. These higher relative yields offer
opportunities and we endeavor to take advantage of any market pricing
inefficiencies identified.
Be assured that the Adviser will continue to give primary attention to
investment quality and liquidity in an effort to maintain the fund's minimal
risk profile.
Sincerely,
OLDE CUSTODIAN FUND
LISA FILDES
Lisa S. Fildes
President
[BOTTOM LOGO]
2
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OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
U.S. GOVERNMENT AGENCY - 3.51%
$ 5,000,000 Federal National Mortgage Association, 6.705%, due 11/27/00
(a)......................................................... $ 4,999,455
11,000,000 Federal National Mortgage Association, 5.270%, due
02/02/01.................................................... 10,967,783
------------
15,967,238
DOMESTIC COMMERCIAL PAPER - 30.04%
11,195,000 General Motors Acceptance Corporation, 6.480%, due
11/01/00.................................................... 11,195,000
4,500,000 American General Finance Corporation, 6.480%, due
11/06/00.................................................... 4,495,950
860,000 Conagra Incorporated, 6.670%, due 11/06/00.................. 859,203
6,580,000 General Motors Acceptance Corporation, 6.490%, due
11/08/00.................................................... 6,571,696
8,955,000 Countrywide Home Loans Incorporated, 6.530%, due 11/09/00... 8,942,005
7,235,000 Salomon Smith Barney Holdings Incorporated, 6.500%, due
11/14/00.................................................... 7,218,018
9,255,000 Ford Motor Credit Company, 6.490%, due 11/16/00............. 9,229,973
3,900,000 Wells Fargo Financial Incorporated, 6.480%, due 11/17/00.... 3,888,768
13,000,000 Ford Motor Credit Company, 6.500%, due 11/20/00............. 12,955,403
9,655,000 Household Finance Corporation, 6.490%, due 11/24/00......... 9,614,968
10,415,000 Bear Stearns Companies Incorporated, 6.470%, due 12/20/00... 10,323,282
6,500,000 Motorola Incorporated, 6.470%, due 12/21/00................. 6,441,590
9,800,000 Motorola Incorporated, 6.480%, due 12/26/00................. 9,702,980
6,200,000 Motorola Incorporated, 6.470%, due 12/27/00................. 6,137,600
6,000,000 Prudential Funding, 6.440%, due 12/28/00.................... 5,938,820
15,000,000 Morgan Stanley Dean Witter Discover, 6.740%, due 02/12/01
(a)......................................................... 15,000,000
8,000,000 Morgan Stanley Dean Witter Discover, 6.690%, due 02/26/01
(a)......................................................... 8,000,000
------------
136,515,256
YANKEE COMMERCIAL PAPER - 15.30%
11,190,000 Unilever Capital Corporation, 6.500%, due 11/02/00.......... 11,187,980
8,345,000 Associates First Capital B.V., 6.500%, due 11/03/00......... 8,341,987
6,000,000 John Deere B.V., 6.500%, due 11/06/00....................... 5,994,583
7,615,000 G. E. Credit Capital Services of Puerto Rico, 6.500%, due
11/07/00.................................................... 7,606,750
3,110,000 John Deere Capital Group PLC, 6.520%, due 11/16/00.......... 3,101,551
7,245,000 American Honda Finance Corporation, 6.480%, due 11/17/00.... 7,224,134
5,685,000 John Deere B.V., 6.510%, due 12/06/00....................... 5,649,019
10,000,000 Deutsche Bank Financial Incorporated, 6.450%, due
12/29/00.................................................... 9,896,083
7,680,000 Bills Securitisation Limited, 6.500%, due 03/07/01.......... 7,505,281
3,000,000 Unilever Capital Corporation, 6.683%, due 09/07/01 (a)...... 3,000,000
------------
69,507,368
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
aei SHORT TERM NOTES - 50.58%
$ 5,000,000 Goldman Sachs Group L.P., 6.820%, due 11/21/00 (a).......... $ 5,000,401
9,000,000 Deutsche Bank Financial Incorporated, 6.550%, due 12/13/00
(a)......................................................... 9,000,066
4,000,000 Goldman Sachs Group L.P., 6.500%, due 12/22/00.............. 4,000,000
3,000,000 AT&T Capital Corporation, 6.875%, due 01/16/01.............. 3,001,166
6,000,000 Chrysler Financial Corporation, 5.150%, due 01/22/01........ 5,980,856
6,000,000 Bank One Corporation, 6.880%, due 01/26/01 (a).............. 6,000,978
12,000,000 Bank of America Corporation, 5.340%, due 02/09/01........... 11,958,211
3,000,000 Nationsbank Corporation, 5.670%, due 02/09/01............... 2,990,749
6,000,000 Texaco Capital Incorporated, 6.650%, due 02/12/01........... 5,998,552
5,000,000 U.S. Bank N.A., 6.759%, due 02/21/01 (a).................... 5,002,438
3,000,000 Merrill Lynch & Company, 6.735%, due 02/28/01............... 3,000,000
9,000,000 John Deere Capital Corporation, 6.750%, due 03/07/01........ 9,000,000
9,000,000 Associates Corporation of N.A., 6.520%, due 03/16/01 (a).... 8,997,347
15,000,000 J.P. Morgan & Company, 6.610%, due 03/16/01 (a)............. 15,000,000
9,000,000 Bank One Corporation, 6.954%, due 04/04/01 (a).............. 9,005,775
7,000,000 Merrill Lynch & Company, 6.599%, due 04/18/01 (a)........... 7,000,000
8,000,000 E.I. Dupont De Numours & Company, 6.750%, due 04/19/01...... 7,998,222
9,000,000 Chrysler Financial Corporation, 5.250%, due 05/04/01........ 8,910,004
10,000,000 First Union National Bank, 6.770%, due 05/14/01 (a)......... 10,000,000
7,000,000 CIT Group Incorporated L.P., 6.604%, due 06/06/01 (a)....... 6,997,974
9,000,000 Citigroup Incorporated, 6.590%, due 06/06/01 (a)............ 9,000,000
4,000,000 J.P. Morgan & Company, 6.590%, due 06/06/01 (a)............. 4,000,000
5,000,000 Nationsbank N.A., 6.710%, due 06/11/01 (a).................. 5,001,932
10,000,000 Goldman Sachs Group L.P., 6.760%, due 06/14/01 (a).......... 10,007,897
8,000,000 Abbey National Treasury, 6.520%, due 06/15/01 (a)........... 7,996,604
5,000,000 Merrill Lynch & Company, 6.730%, due 06/18/01 (a)........... 5,002,382
7,000,000 CIT Group Incorporated L.P., 6.973%, due 07/09/01 (a)....... 7,008,598
5,000,000 Merrill Lynch & Company, 7.175%, due 07/11/01 (a)........... 5,012,235
6,000,000 U.S. Bank N.A., 6.750%, due 07/16/01 (a).................... 6,005,333
8,000,000 National Rural Utilities CFC, 6.730%, due 07/20/01 (a)...... 8,000,000
5,000,000 John Deere Capital Corporation, 6.979%, due 07/30/01 (a).... 5,008,558
5,000,000 Associates Corporation of N.A., 6.750%, due 08/01/01........ 4,996,758
3,000,000 Merrill Lynch & Company, 6.830%, due 09/17/01 (a)........... 3,004,499
5,000,000 Household Finance Corporation, 6.860%, due 10/25/01 (a)..... 5,004,790
------------
229,892,325
------------
TOTAL
INVESTMENTS - 99.43%
...................... 451,882,187
OTHER ASSETS LESS
LIABILITIES - 0.57%
...................... 2,599,774
------------
NET ASSETS - 100% .... $454,481,961
============
</TABLE>
(a) - Variable rate Securities. The rates shown are the current rates as of
October 31, 2000.
See accompanying notes.
4
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OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $451,882,187
Cash...................................................... 1,818
Interest receivable....................................... 3,020,198
Prepaid expenses.......................................... 68,357
------------
TOTAL ASSETS............................................ 454,972,560
LIABILITIES:
Dividends payable (Note 2)................................ 365,004
Accrued expenses.......................................... 23,731
Payable to OLDE Asset Management, Inc..................... 101,864
------------
TOTAL LIABILITIES....................................... 490,599
------------
NET ASSETS applicable to 454,481,961 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $454,481,961
============
NET ASSET VALUE, offering and redemption price per share on
454,481,961 shares of beneficial interest outstanding..... $1.00
============
</TABLE>
OLDE MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 31,947,603
EXPENSES:
Management fees........................................... 2,341,117
Transfer agent fees....................................... 1,518,200
Custodian fees............................................ 28,368
Professional fees......................................... 24,645
Accounting fees........................................... 15,717
Printing and postage...................................... 75,595
Trustee fees.............................................. 7,337
Insurance................................................. 3,567
Registration costs........................................ 122,924
12b-1 distribution costs.................................. 91,168
------------
TOTAL EXPENSES.......................................... 4,228,638
------------
NET INVESTMENT INCOME....................................... $ 27,718,965
============
</TABLE>
See accompanying notes.
5
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OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
2000 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 27,718,965 $ 21,708,455
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (27,718,965) (21,708,455)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 2,368,294,074 2,158,159,629
Net asset value of shares issued in reinvestment of
dividends............................................... 25,976,545 20,486,319
--------------- ---------------
2,394,270,619 2,178,645,948
Cost of shares redeemed................................... (2,427,555,473) (2,146,795,037)
--------------- ---------------
Net decrease (increase) in shareholders' equity from share
transactions............................................ (33,284,854) 31,850,911
--------------- ---------------
NET DECREASE (INCREASE) IN SHAREHOLDERS' EQUITY............. (33,284,854) 31,850,911
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 487,766,815 455,915,904
--------------- ---------------
At end of year............................................ $ 454,481,961 $ 487,766,815
=============== ===============
</TABLE>
OLDE MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<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........................ 0.0564 0.0439 0.0476 0.0470 0.0460
DISTRIBUTIONS:
Dividends from net investment income......... (0.0564) (0.0439) (0.0476) (0.0470) (0.0460)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return(annualized)..................... +5.64% +4.39% +4.76% +4.70% +4.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted).... $454,482 $487,767 $455,916 $403,167 $373,147
Ratio of expenses to average net assets...... 0.83% 0.90% 0.91% 0.95% 1.00%
Ratio of net investment income to average
net assets................................... 5.64% 4.39% 4.76% 4.70% 4.60%
</TABLE>
See accompanying notes.
6
<PAGE> 7
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OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
U.S. GOVERNMENT AGENCY - 1.92%
$ 7,000,000 Federal National Mortgage Association, 5.270%, due
02/02/01.................................................... $ 6,979,499
------------
6,979,499
DOMESTIC COMMERCIAL PAPER - 31.35%
8,140,000 Aetna Services Incorporated, 6.600%, due 11/01/00........... 8,140,000
6,610,000 Salomon Smith Barney Holdings Incorporated, 6.490%, due
11/02/00.................................................... 6,608,808
7,655,000 American General Finance Corporation, 6.480%, due
11/07/00.................................................... 7,646,733
5,000,000 Heller Financial Incorporated, 6.570%, due 11/08/00......... 4,993,613
4,840,000 Countrywide Home Loans incorporated, 6.500%, due 11/09/00... 4,833,009
9,895,000 Household Finance Corporation, 6.490%, due 11/13/00......... 9,873,594
7,075,000 Countrywide Home Loans incorporated, 6.530%, due 11/14/00... 7,058,317
4,840,000 Ford Motor Credit Company, 6.490%, due 11/16/00............. 4,826,912
9,750,000 Ford Motor Credit Company, 6.500%, due 11/17/00............. 9,721,833
7,815,000 Paccar Financial Corporation, 6.470%, due 11/20/00.......... 7,788,314
7,550,000 Motorola Incorporated, 6.480%, due 12/15/00................. 7,490,204
6,000,000 Motorola Incorporated, 6.470%, due 12/21/00................. 5,946,083
3,050,000 Motorola Credit Corporation, 6.470%, due 12/22/00........... 3,022,044
2,875,000 Prudential Funding, 6.440%, due 12/27/00.................... 2,846,199
6,000,000 Prudential Funding, 6.440%, due 12/28/00.................... 5,938,820
11,200,000 Morgan Stanley Dean Witter Discover, 6.740%, due 02/12/01
(a)......................................................... 11,200,000
6,000,000 Morgan Stanley Dean Witter Discover, 6.690%, due 02/26/01
(a)......................................................... 6,000,000
------------
113,934,483
YANKEE COMMERCIAL PAPER - 13.39%
10,185,000 FCE Bank PLC, 6.500%, due 11/03/00.......................... 10,181,322
3,500,000 Hitachi Credit America Corporation, 6.500%, due 11/06/00.... 3,496,840
6,000,000 John Deere B.V., 6.500%, due 11/06/00....................... 5,994,583
4,495,000 G.E. Credit Capital Services Of Puerto Rico, 6.500%, due
11/08/00.................................................... 4,489,319
6,715,000 John Deere B.V., 6.510%, due 12/05/00....................... 6,673,714
5,000,000 Deutsche Bank Financial Incorporated, 6.450%, due
12/29/00.................................................... 4,948,042
8,040,000 Bills Securitisation Limited, 6.500%, due 03/07/01.......... 7,857,090
5,000,000 Unilever Capital Corporation, 6.683%, due 09/07/01 (a)...... 5,000,000
------------
48,640,910
BANK OBLIGATIONS - 8.51%
4,620,000 Monogram Credit Card Bank Of Georgia, 6.570%, due
11/30/00.................................................... 4,620,000
5,000,000 Rabobank Nederland N.Y., 6.210%, due 12/06/00............... 4,999,772
9,310,000 First Tennessee Bank N.A., 6.540%, due 12/26/00............. 9,310,000
7,000,000 Rabobank Nederland N.Y., 6.510%, due 01/31/01............... 6,999,170
5,000,000 UBS AG Stamford, 6.880%, due 08/20/01....................... 4,998,862
------------
30,927,804
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
SHORT TERM NOTES - 44.21%
$ 5,000,000 Goldman Sachs Group L.P., 6.820%, due 11/21/00 (a).......... $ 5,000,401
6,000,000 Deutsche Bank Financial Incorporated, 6.550%, due 12/13/00
(a)......................................................... 6,000,044
2,000,000 Goldman Sachs Group L.P., 6.500%, due 12/22/00.............. 2,000,000
2,100,000 Ford Motor Credit Company, 6.060%, due 12/27/00............. 2,099,034
3,000,000 AT&T Capital Corporation, 6.875%, due 01/16/01.............. 3,001,166
3,810,000 Chrysler Financial Corporation, 5.150%, due 01/22/01........ 3,797,844
4,000,000 Bank One Corporation, 6.880%, due 01/26/01 (a).............. 4,000,651
4,000,000 Nationsbank Corporation, 5.670%, due 02/09/01............... 3,987,665
2,000,000 Texaco Capital Incorporated, 6.650%, due 02/12/01........... 1,999,518
4,000,000 U.S. Bank N.A., 6.759%, due 02/21/01 (a).................... 4,001,951
2,000,000 General Motors Acceptance Corporation, 6.830%, due 02/23/01
(a)......................................................... 2,000,918
2,000,000 Merrill Lynch & Company, 6.735%, due 02/28/01............... 2,000,000
6,000,000 John Deere Capital Corporation, 6.750%, due 03/07/01........ 6,000,000
5,700,000 Bank One N.A., 6.700%, due 03/12/01......................... 5,700,000
10,000,000 J.P. Morgan & Company, 6.610%, due 03/16/01 (a)............. 10,000,000
6,000,000 Associates Corporation Of N.A., 6.520%, due 03/16/01 (a).... 5,998,230
6,000,000 Bank One Corporation, 6.954%, due 04/04/01 (a).............. 6,003,850
8,000,000 Merrill Lynch & Company, 6.599%, due 04/18/01 (a)........... 8,000,000
6,000,000 E.I. Dupont De Numours & Company, 6.750%, due 04/19/01...... 5,998,666
5,000,000 First Union National Bank, 6.770%, due 05/14/01 (a)......... 5,000,000
7,000,000 Merrill Lynch & Company, 7.370%, due 05/18/01............... 7,000,000
5,000,000 CIT Group Incorporated, 6.604%, due 06/06/01 (a)............ 4,998,553
6,000,000 Citigroup Incorporated, 6.590%, due 06/06/01 (a)............ 6,000,000
3,000,000 J.P. Morgan & Company, 6.590%, due 06/06/01 (a)............. 3,000,000
7,000,000 Nationsbank N.A., 6.710%, due 06/11/01 (a).................. 7,002,705
6,000,000 Abbey National Treasury, 6.520%, due 06/15/01 (a)........... 5,997,454
5,000,000 CIT Group Incorporated, 6.973%, due 07/09/01 (a)............ 5,006,141
9,000,000 U.S. Bank N.A., 6.750%, due 07/16/01 (a).................... 9,007,999
6,000,000 National Rural Utilities CFC, 6.730%, due 07/20/01 (a)...... 6,000,000
4,000,000 Nationsbank Corporation, 7.161%, due 07/24/01 (a)........... 4,011,995
5,000,000 John Deere Capital Corporation, 6.979%, due 07/30/01 (a).... 5,008,558
5,000,000 Household Finance Corporation, 6.860%, due 10/25/01 (a)..... 5,004,790
------------
160,628,133
------------
TOTAL INVESTMENTS -
99.38%. ................ 361,110,829
OTHER ASSETS LESS
LIABILITIES - 0.62% .... 2,261,444
------------
NET ASSETS - 100%. ..... $363,372,273
============
</TABLE>
(a) - Variable rate Securities. The rates shown are the current rates as of
October 31, 2000.
See accompanying notes.
8
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OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $361,110,829
Cash...................................................... 1,168
Interest receivable....................................... 2,722,418
Prepaid expenses.......................................... 19,711
------------
TOTAL ASSETS............................................ 363,854,126
LIABILITIES:
Dividends payable (Note 2)................................ 307,781
Accrued expenses.......................................... 59,064
Payable to OLDE Asset Management, Inc..................... 115,008
------------
TOTAL LIABILITIES....................................... 481,853
------------
NET ASSETS applicable to 363,372,273 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $363,372,273
============
NET ASSET VALUE, offering and redemption price per share on
363,372,273 shares of beneficial interest outstanding..... $1.00
============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 23,121,418
EXPENSES:
Management fees........................................... 1,074,406
Transfer agent fees....................................... 491,611
Custodian fees............................................ 22,556
Professional fees......................................... 26,236
Accounting fees........................................... 16,513
Printing and postage...................................... 30,012
Trustee fees.............................................. 4,996
Insurance................................................. 3,074
Registration costs........................................ 96,876
12b-1 distribution costs.................................. 121,214
------------
TOTAL EXPENSES.......................................... 1,887,494
------------
NET INVESTMENT INCOME....................................... $ 21,233,924
============
</TABLE>
See accompanying notes.
9
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OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE PREMIUM MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
2000 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 21,233,924 $ 17,204,553
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (21,233,924) (17,204,553)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 1,002,253,967 1,011,820,864
Net asset value of shares issued in reinvestment of
dividends............................................... 20,151,536 16,421,277
--------------- ---------------
1,022,405,503 1,028,242,141
Cost of shares redeemed................................... (1,023,081,797) (1,013,127,750)
--------------- ---------------
Net decrease (increase) in shareholders' equity from share
transactions............................................ (676,294) 15,114,391
--------------- ---------------
NET DECREASE (INCREASE) IN SHAREHOLDERS' EQUITY............. (676,294) 15,114,391
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 364,048,567 348,934,176
--------------- ---------------
At end of year............................................ $ 363,372,273 $ 364,048,567
=============== ===============
</TABLE>
OLDE PREMIUM MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<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..................... 0.0591 0.0479 0.0519 0.0508 0.0490
DISTRIBUTIONS:
Dividends from net investment income...... (0.0591) (0.0479) (0.0519) (0.0508) (0.0490)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR................ $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total return (annualized)................. +5.91% +4.79% +5.19% +5.08% +4.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)................................ $363,372 $364,049 $348,934 $289,963 $233,962
Ratio of expenses to average net assets... 0.51% 0.52% 0.50% 0.58% 0.70%
Ratio of net investment income to average
net assets................................ 5.91% 4.79% 5.19% 5.08% 4.90%
</TABLE>
See accompanying notes.
10
<PAGE> 11
--------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
U.S. GOVERNMENT AGENCY - 3.14%
$25,000,000 Student Loan Marketing Association, 6.815%, due 11/13/00
(a)......................................................... $ 24,999,836
32,000,000 Federal National Mortgage Association, 5.270%, due
02/02/01.................................................... 31,906,279
25,000,000 Federal Home Loan Mortgage Corporation, 5.480%, due
05/15/01.................................................... 24,781,685
--------------
81,687,800
DOMESTIC COMMERCIAL PAPER - 36.91%
45,000,000 Salomon Smith Barney Holdings Inc, 6.490%, due 11/02/00..... 44,991,887
42,975,000 American Express Credit Corporation, 6.490%, due 11/03/00... 42,959,505
43,825,000 General Motors Acceptance Corporation, 6.490%, due
11/03/00.................................................... 43,809,199
40,000,000 Salomon Smith Barney Holdings Incorporated, 6.500%, due
11/06/00.................................................... 39,963,889
37,290,000 Countrywide Home Loans incorporated, 6.510%, due 11/06/00... 37,256,284
11,125,000 Conagra Incorporated, 6.670%, due 11/06/00.................. 11,114,694
42,120,000 G.E. Capital Corporation, 6.480%, due 11/07/00.............. 42,074,510
29,675,000 General Motors Acceptance Corporation, 6.490%, due
11/08/00.................................................... 29,637,552
50,720,000 DaimlerChrysler N.A. Holding Corp, 6.490%, due 11/09/00..... 50,646,850
48,330,000 Prudential Funding, 6.480%, due 11/14/00.................... 48,216,908
53,475,000 Ford Motor Credit Company, 6.480%, due 11/16/00............. 53,330,617
35,000,000 Ford Motor Credit Company, 6.500%, due 11/21/00............. 34,873,611
36,690,000 General Motors Acceptance Corporation, 6.490%, due
11/22/00.................................................... 36,551,098
58,170,000 Wells Fargo Financial Incorporated, 6.490%, due 11/27/00.... 57,897,344
32,060,000 Motorola Incorporated, 6.480%, due 12/13/00................. 31,817,626
44,170,000 Bear Stearns Companies Incorporated, 6.470%, due 12/20/00... 43,781,022
20,185,000 Motorola Incorporated, 6.470%, due 12/21/00................. 20,003,615
33,000,000 Motorola Incorporated, 6.450%, due 12/26/00................. 32,674,812
55,950,000 Prudential Funding, 6.440%, due 12/28/00.................... 55,379,496
42,665,000 Motorola Credit Corporation, 6.480%, due 12/29/00........... 42,219,577
50,000,000 Goldman Sachs Group L.P., 6.550%, due 01/02/01.............. 49,435,972
20,005,000 G.E. Capital Services, 6.520%, due 01/08/01................. 19,758,627
51,660,000 Morgan Stanley Dean Witter Discover, 6.740%, due 02/12/01
(a)......................................................... 51,660,000
40,000,000 Morgan Stanley Dean Witter Discover, 6.690%, due 02/26/01
(a)......................................................... 40,000,000
--------------
960,054,695
YANKEE COMMERCIAL PAPER - 14.49%
50,000,000 Associates First Capital B.V., 6.500%, due 11/01/00......... 50,000,000
22,575,000 Deutsche Bank Financial Incorporated, 6.490%, due
11/13/00.................................................... 22,526,163
38,320,000 G.E. Credit Capital Services Of Puerto Rico, 6.500%, due
11/15/00.................................................... 38,223,136
10,890,000 John Deere Capital Group PLC, 6.520%, due 11/17/00.......... 10,858,443
30,000,000 Ford Motor Credit of Puerto Rico, 6.490%, due 11/17/00...... 29,913,467
42,025,000 Deutsche Bank Financial Incorporated, 6.470%, due
12/04/00.................................................... 41,775,757
21,500,000 G.E. Credit Capital Services Of Puerto Rico, 6.500%, due
12/05/00.................................................... 21,368,014
28,000,000 John Deere B.V., 6.490%, due 12/14/00....................... 27,782,946
21,000,000 Associates First Capital B.V., 6.450%, due 12/27/00......... 20,789,300
40,000,000 Deutsche Bank Financial Incorporated, 6.460%, due
12/28/00.................................................... 39,590,867
20,000,000 Deutsche Bank Financial Incorporated, 6.450%, due
12/29/00.................................................... 19,792,167
32,880,000 Bills Securitisation Limited, 6.500%, due 03/07/01.......... 32,131,980
22,000,000 Unilever Capital Corporation, 6.683%, due 09/07/01 (a)...... 22,000,000
--------------
376,752,240
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
<C> <S> <C>
@i BANK OBLIGATIONS - 9.37%
$38,110,000 First Tennessee Bank N.A., 6.530%, due 11/08/00............. $ 38,110,000
40,000,000 Monogram Credit Card Bank Of Georgia, 6.570%, due
11/30/00.................................................... 40,000,000
45,000,000 Rabobank Nederland N.Y., 6.210%, due 12/06/00............... 44,997,943
57,485,000 First Tennessee Bank N.A., 6.540%, due 12/28/00............. 57,485,000
43,000,000 Rabobank Nederland N.Y., 6.510%, due 01/31/01............... 42,994,905
20,000,000 UBS AG Stamford, 6.880%, due 08/20/01....................... 19,995,449
--------------
243,583,297
SHORT TERM NOTES - 35.45%
12,000,000 Caterpiller Financial Services Corporation, 6.780%, due
11/17/00 (a)................................................ 12,000,531
20,000,000 Bear Stearns Companies Incorporated, 7.024%, due 12/08/00
(a)......................................................... 20,006,857
8,000,000 Prudential Funding LLC, 6.700%, due 12/21/00 (a)............ 8,000,786
19,000,000 Goldman Sachs Group L.P., 6.500%, due 12/22/00.............. 19,000,000
10,000,000 Ford Motor Credit Company, 6.060%, due 12/27/00............. 9,995,403
14,505,000 AT&T Capital Corporation, 6.875%, due 01/16/01.............. 14,510,637
36,000,000 Bank One Corporation, 6.880%, due 01/26/01 (a).............. 36,005,864
8,000,000 Bank Of America Corporation, 5.340%, due 02/09/01........... 7,972,141
17,000,000 Texaco Capital Incorporated, 6.650%, due 02/12/01........... 16,995,897
16,000,000 U.S. Bank N.A., 6.759%, due 02/21/01 (a).................... 16,007,802
20,000,000 Merrill Lynch & Company, 6.735%, due 02/28/01............... 20,000,000
45,000,000 John Deere Capital Corporation, 6.750%, due 03/07/01........ 45,000,000
18,715,000 Bank One N.A., 6.700%, due 03/12/01......................... 18,715,000
35,000,000 Associates Corporation Of N.A., 6.520%, due 03/16/01 (a).... 34,989,680
75,000,000 J.P. Morgan & Company, 6.610%, due 03/16/01 (a)............. 75,000,000
30,000,000 Bank One Corporation, 6.954%, due 04/04/01 (a).............. 30,019,250
12,000,000 Merrill Lynch & Company, 6.844%, due 04/18/01 (a)........... 12,000,443
35,000,000 Merrill Lynch & Company, 6.599%, due 04/18/01 (a)........... 35,000,000
36,000,000 E.I. Dupont De Numours & Company, 6.750%, due 04/19/01...... 35,991,999
4,530,000 Chrysler Financial Corporation, 5.250%, due 05/04/01........ 4,484,702
35,000,000 First Union National Bank, 6.770%, due 05/14/01 (a)......... 35,000,000
20,000,000 American Express Centurion Bank, 6.588%, due 05/17/01 (a)... 19,998,809
43,000,000 Merrill Lynch & Company, 7.370%, due 05/18/01............... 43,000,000
19,475,000 Bank Of America Corporation, 6.625%, due 05/30/01........... 19,424,274
28,000,000 J.P. Morgan & Company, 6.590%, due 06/06/01 (a)............. 28,000,000
35,000,000 Citigroup Incorporated, 6.590%, due 06/06/01 (a)............ 35,000,000
38,000,000 CIT Group Incorporated, 6.604%, due 06/06/01 (a)............ 37,989,002
38,000,000 Nationsbank N.A., 6.710%, due 06/11/01 (a).................. 38,014,682
8,000,000 Goldman Sachs Group L.P., 6.760%, due 06/14/01 (a).......... 8,006,318
36,000,000 Abbey National Treasury, 6.520%, due 06/15/01 (a)........... 35,984,720
13,000,000 Bank One Corporation, 6.730%, due 06/18/01 (a).............. 13,001,720
10,000,000 Bank Of America Corporation, 6.842%, due 07/12/01 (a)....... 10,002,695
36,000,000 National Rural Utilities CFC, 6.730%, due 07/20/01 (a)...... 36,000,000
3,850,000 Associates Corporation Of N.A., 6.750%, due 08/01/01........ 3,847,504
5,000,000 Bank Of America N.A., 6.670%, due 09/06/01 (a).............. 5,002,888
20,000,000 Wells Fargo Financial Incorporated, 6.595%, due 10/12/01
(a)......................................................... 19,994,489
22,000,000 Household Finance Corporation, 7.198%, due 10/15/01 (a)..... 22,086,232
15,000,000 Household Finance Corporation, 6.860%, due 10/25/01 (a)..... 15,014,371
25,000,000 Household Finance Corporation, 6.950%, due 10/26/01 (a)..... 25,045,455
--------------
922,110,151
--------------
TOTAL
INVESTMENTS - 99.36%.... 2,584,188,183
OTHER ASSETS LESS
LIABILITIES - 0.64%..... 16,774,985
--------------
NET ASSETS - 100%....... $2,600,963,168
==============
</TABLE>
(a) - Variable rate Securities. The rates shown are the current rates as of
October 31, 2000.
See accompanying notes.
12
<PAGE> 13
--------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments at amortized cost (Note 1).................... $2,584,188,183
Cash...................................................... 1,657
Interest receivable....................................... 19,571,974
Prepaid expenses.......................................... 80,311
--------------
TOTAL ASSETS............................................ 2,603,842,125
LIABILITIES:
Dividends payable (Note 2)................................ 2,270,949
Accrued expenses.......................................... 179,960
Payable to OLDE Asset Management.......................... 428,048
--------------
TOTAL LIABILITIES....................................... 2,878,957
--------------
NET ASSETS applicable to 2,600,963,168 outstanding shares,
unlimited number of shares authorized, $0.01 par value.... $2,600,963,168
==============
NET ASSET VALUE, offering and redemption price per share on
2,600,963,168 shares of beneficial interest outstanding... $1.00
==============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INTEREST INCOME (Note 1):................................... $ 159,918,704
EXPENSES:
Management fees........................................... 3,703,705
Transfer agent fees....................................... 567,198
Custodian fees............................................ 162,243
Professional fees......................................... 27,750
Accounting fees........................................... 16,513
Printing and postage...................................... 51,820
Trustee fees.............................................. 35,650
Insurance................................................. 21,159
Registration costs........................................ 211,440
12b-1 distribution costs.................................. 1,727,995
--------------
TOTAL EXPENSES............................................ 6,525,473
Expenses waived and reimbursed............................ (1,490,049)
--------------
NET EXPENSES.............................................. 5,035,424
--------------
NET INVESTMENT INCOME....................................... $ 154,883,280
==============
</TABLE>
See accompanying notes.
13
<PAGE> 14
--------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
OLDE PREMIUM PLUS MONEY MARKET SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
2000 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 154,883,280 $ 131,547,325
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income..................................... (154,883,280) (131,547,325)
SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Proceeds from sales of shares............................. 4,358,953,293 4,221,923,872
Net asset value of shares issued in reinvestment of
dividends............................................... 149,213,057 127,771,342
--------------- ---------------
4,508,166,350 4,349,695,214
Cost of shares redeemed................................... (4,555,653,912) (4,100,388,721)
--------------- ---------------
Net decrease (increase) in shareholders' equity from share
transactions............................................ (47,487,562) 249,306,493
--------------- ---------------
NET DECREASE (INCREASE) IN SHAREHOLDERS' EQUITY............. (47,487,562) 249,306,493
SHAREHOLDERS' EQUITY:
At beginning of year...................................... 2,648,450,730 2,399,144,237
--------------- ---------------
At end of year............................................ $ 2,600,963,168 $ 2,648,450,730
=============== ===============
</TABLE>
OLDE PREMIUM PLUS MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
<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................... 0.0624 0.0512 0.0548 0.0552 0.0560
DISTRIBUTIONS:
Dividends from net investment income.... (0.0624) (0.0512) (0.0548) (0.0552) (0.0560)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR.............. $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ==========
Total return (annualized)............... +6.24% +5.12% +5.48% +5.52% +5.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)................................ $2,600,963 $2,648,451 $2,399,144 $2,067,279 $1,825,480
Ratio of net expenses to average net
assets.................................. 0.20% 0.20% 0.20% 0.14% -
Ratio of total expenses to average net
assets.................................. 0.26% 0.26% 0.26% 0.27% 0.36%
Ratio of net investment income to
average net assets...................... 6.24% 5.12% 5.48% 5.52% 5.60%
</TABLE>
See accompanying notes.
14
<PAGE> 15
--------------------------------------------------------------------------------
OLDE CUSTODIAN FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
OLDE Custodian Fund (the Fund) is a business trust established under the laws of
Massachusetts and is registered under the Investment Company Act of 1940 as a
diversified, open-end management company. Three series of the Fund are currently
offered for sale: OLDE Money Market Series, OLDE Premium Money Market Series and
OLDE Premium Plus Money Market Series.
NATURE OF OPERATIONS
The investment objective of each series is maximum current income, consistent
with preservation of capital and liquidity.
SECURITY VALUATION
The Fund utilizes the amortized cost method to determine the carrying value of
its investment securities. Under this method, investment securities are valued
for both financial reporting and Federal tax purposes at cost and any discount
or premium is amortized from the date of acquisition to maturity. The use of
this method results in a carrying value which approximates the market value.
Since the Fund's portfolio investments are valued at amortized cost, there will
normally not be any unrealized gains or losses on such investments. However,
should the carrying value of the Fund's investment deviate significantly from
market value, the Board of Trustees could decide to value the investments at
market value.
Investment securities purchases and sales are accounted for on a trade-date
basis.
INTEREST INCOME
Interest income is recorded daily on the accrual basis, adjusted for
amortization of premium and accretion of discount.
EXPENSES
Expenses of each series are accrued daily.
USE OF ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results could differ
from those estimates.
2. DIVIDENDS TO SHAREHOLDERS
On each day the New York Stock Exchange is open for business, the Fund declares
dividends of its daily net investment income to shareholders of record prior to
the declaration.
Each series calculates its dividends based on its daily net investment income.
For this purpose, the net investment income of each series consists of (1)
accrued interest income adjusted for amortized discount or premium, (2) any
short-term realized gains or losses on investments, and (3) a deduction for
accrued expenses allocated to that series.
3. FEDERAL INCOME TAXES
The Internal Revenue Code of 1986, as amended, treats each series of the Fund as
a separate regulated investment company. It is the Fund's policy to comply with
the requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its income to shareholders. Therefore, no
Federal income tax provision is required in the accompanying financial
statements.
4. TRANSACTIONS WITH AFFILIATES
The Fund has an Investment Advisory Agreement with OLDE Asset Management, Inc.
(the Adviser). Under the current agreement, the Adviser receives a monthly
management fee equal to an annual rate of the average daily net asset value of
each series in accordance with the following schedule:
<TABLE>
<S> <C>
OLDE Money Market Series 0.50%
OLDE Premium Money Market Series 0.30%
OLDE Premium Plus Money Market Series 0.15%
</TABLE>
The Advisory Agreement also provides for the Adviser to reimburse a series for
the aggregate expenses of a series (excluding taxes, brokerage fees, and, to the
extent permitted by state securities laws, extraordinary expenses) which exceed
2% of its first $10 million in assets, 1 1/2% of the next
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
$20 million and 1% of assets in excess of $30 million.
The Fund has an Accounting Service Agreement with the Adviser. Under the current
agreement, the Adviser receives a fixed fee of $1,375 per month for each series.
The Fund has a Shareholder Services Agreement with H&R Block Financial Advisors,
Inc. (HRBFA). Under the current agreement, HRBFA receives a fixed fee of $24 per
beneficial account per annum.
The Fund has an Underwriting Agreement with HRBFA. As underwriter for the Fund,
HRBFA received no commissions for the year ended October 31, 2000. For the year
ended October 31, 2000, the Fund made no direct payments to its officers and
affiliated trustees and incurred trustee fees of $47,984 to unaffiliated
trustees.
Effective January 1, 1997 through June 30, 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, 2000, the
Series incurred total expenses of $6,525,473. HRBFA waived 12b-1 expenses of
$1,490,049.
5. DISTRIBUTION ASSISTANCE
Under a Plan and Agreement of Distribution pursuant to Rule 12b-1 of the
Investment Company Act of 1940, HRBFA 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, 2000, the annualized percentage rate of 12b-1
expense was .02% 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, 2000 are as
follows:
OLDE Money Market Series:
Purchases: $3,414,907,177
Sales (including maturities): $3,464,130,080
OLDE Premium Money Market Series:
Purchases: $2,508,361,966
Sales (including maturities): $2,518,881,440
OLDE Premium Plus Money Market Series:
Purchases: $15,596,029,318
Sales (including maturities): $15,715,880,484
7. BANK LINE OF CREDIT
At October 31, 2000 a secured line of credit in the amount of $10,000,000 was
available to the Fund. This line of credit is cancelable by the bank. Advances
under the line bear interest at the federal funds rate plus 1/2%. There have
been no borrowings under this line as of October 31, 2000.
8. H&R BLOCK PURCHASE OF OLDE FINANCIAL CORPORATION (UNAUDITED)
On December 1, 1999 OLDE Financial Corporation and its subsidiaries, including
OLDE Asset Management, Inc. were acquired by H&R Block, Inc., through Block
Financial Corporation. This transaction resulted in an "assignment" of the
advisory agreements between OLDE Asset Management, Inc. (the "Adviser") and each
of the three series of the Fund. The advisory agreements terminated
automatically upon this assignment. The Adviser continued to act as adviser to
each series pursuant to an exemption granted by the SEC while seeking
shareholder approval of new advisory agreements.
Special Meetings of the Shareholders of each series were scheduled for January
18, 2000, but quorums were not present for any of the three series. The meetings
were adjourned until March 3, 2000. At that time, a quorum was present for OLDE
Premium Money Market Series and OLDE Premium Plus Money Market Series. The
shareholders approved the new advisory agreements as follows:
OLDE Premium Money Market Series:
<TABLE>
<S> <C>
For 159,101,958
Against 11,550,350
Abstain 29,732,091
</TABLE>
16
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Accordingly, The Advisory Agreement between OLDE Asset Management, Inc. and OLDE
Premium Money Market Series was approved.
OLDE Premium Plus Money Market Series:
<TABLE>
<S> <C>
For 1,171,430,690
Against 97,238,226
Abstain 180,971,893
</TABLE>
Accordingly, the Advisory Agreement between OLDE Asset Management, Inc. and OLDE
Premium Plus Money Market Series was approved.
A quorum was not present for OLDE Money Market Series and the meeting was
adjourned until April 7, 2000. At that time a quorum was present and the
shareholders approved the new advisory agreement as follows:
<TABLE>
<S> <C>
For 218,062,005
Against 19,698,818
Abstain 44,387,200
</TABLE>
Accordingly, the Advisory Agreement between OLDE Asset Management , Inc. and
OLDE Money Market Series was approved.
17
<PAGE> 18
---------------------------------------------------------------------
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, 2000, 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, 2000, 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, 2000, 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 22, 2000
ERNST & YOUNG LLP SIGNATURE
18
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