The Glenmede Trust Company
The Glenmede Fund, Inc.
The Glenmede Portfolios
Annual Report
October 31, 1998
The performance for each of the portfolios shown on pages 3 to 14 represents
past performance and is not a guarantee of future results. A portfolio's share
price and investment return will vary with market conditions, and the principal
value of shares, when redeemed, may be more or less than their original cost. An
investment in a portfolio is neither insured nor guaranteed by the U.S.
Government, the Federal Deposit Insurance Corporation, the Federal Reserve Board
or any other governmental agency or bank.
The yields of money market funds will fluctuate as market conditions change.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund. Unlike actual Fund
performance, performance of an index does not reflect any expenses or
transaction costs. A direct investment in an unmanaged index is not possible.
THE GLENMEDE FUND PRESIDENT'S LETTER
The Glenmede family of funds celebrated their 10th anniversary this year.
In 1988, four portfolios were created to more efficiently manage Glenmede's
International Equity, Fixed Income and Cash products for their clients. Since
then, Tax Managed Equity, Small Capitalization Equity, Emerging Markets and two
Municipal portfolios have been added. Different portfolios and separate classes
also have been created to meet the objectives of tax-exempt and taxable clients.
In the next decade, Glenmede will continue to try to meet the challenge of tax
efficient investing.
During the past year a Global Equity portfolio was added to the family. This
fund combines the investment styles of the International Equity portfolio and
the Tax Managed Equity portfolio. Specific country allocations are based on
relative valuations of the country's equity markets.
In addition, two changes were made to existing funds. The name of the Equity
fund was changed to Tax Managed Equity to reflect that it is managed to reduce
the impact of taxes on shareholder returns. This does not represent a change in
the investment style but is intended to more clearly reflect that this fund is
appropriate for taxable investors. The Small Capitalization Equity Portfolio
added an institutional class to reflect the diminished shareholder servicing
required by larger shareholders and therefore, providing them the result of such
lower expenses.
For the fiscal year ended October 31, 1998, The Glenmede Fund Inc. had twelve
portfolios with total assets of $3.0 billion.
<PAGE>
All of the Glenmede Funds are managed to provide potential maximum long-term
total returns consistent with reasonable risk to principal for the asset
category. Every effort is made to keep expenses at competitive levels. Glenmede
uses a quantitative value style of investing for all of its products.
1998 was a very volatile year for the markets and a difficult year for value
equity investors in Large Cap and Small Cap stocks. During the year most of the
price performance of the S&P 500 was in the "mega-caps", which benefitted growth
managers. In fixed income, there was a flight to quality after the global
economic problems in the summer. This resulted in exceptional investment
performance by US Treasuries and significant underperformance by Corporate and
Mortgaged Backed securities.
We are pleased to provide you with the 1998 results of the Glenmede funds and
thank our clients for their continued supported.
Sincerely,
SIGNATURE
Mary Ann B. Wirts
President
November 15, 1998
2
<PAGE>
THE GLENMEDE FUND, INC.
Government Cash Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
Average Annual Total Return
IBC's U.S. Government and Agencies
Government Money Fund
Cash Portfolio Average(TM)(1)
-------------- --------------
Year ended 10/31/98 5.63% 5.01%
Five Years ended 10/31/98 5.25% 4.68%
Inception (11/7/88) through 10/31/98 5.79% 5.17%
7-Day(2) 7-Day(2)
Government Cash Portfolio Yield Effective Yield
- ------------------------- -------- ---------------
As of 10/31/98 5.08% 5.21%
During the past fiscal year, the Government Cash Portfolio outperformed IBC's
U.S. Government and Agencies Money Fund Average(TM) due to its use of overnight
and term mortgage-backed security repurchase agreements. This strategy enhanced
the yield while maintaining a high quality diversified portfolio of money market
instruments.
Hypothetical Illustration of $10,000 Invested in
Government Cash Portfolio vs.
IBC's U.S. Government and Agencies Money Fund Average(TM)
11/7/88 through 10/31/98
Government Cash Portfolio
Glenmede IBC's U.S.
Government Government
Cash and Agencies
Portfolio Money Fund Average
--------- ------------------
Nov. 1988 10000 10000
Oct. 1989 10927 10874
Oct. 1990 11846 11720
Oct. 1991 12627 12423
Oct. 1992 13156 12871
Oct. 1993 13575 13208
Oct. 1994 14091 13637
Oct. 1995 14918 14353
Oct. 1996 15733 15055
Oct. 1997 16603 15790
Oct. 1998 17537 16558
$17,537
$16,558
* Assumes the reinvestment of all dividends.
1 IBC's U.S. Government and Agencies Money Fund Average(TM) is comprised of
money market funds investing in U.S. treasury securities and government
agency obligations. Funds included in this average must have at least
$100,000 in total net assets.
2 "Current yield" refers to the income generated by an investment in the Fund
over a 7-day period. This income is then "annualized". The "effective
yield" is calculated similarly but, when annualized, the income earned by
an investment in the Fund is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because of the
compounding effect of this assumed reinvestment. The yield quotation more
closely reflects the current earnings of the Fund than the total return
quotation.
3
<PAGE>
THE GLENMEDE FUND, INC.
Tax-Exempt Cash Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
Average Annual Total Return
<TABLE>
<CAPTION>
IBC's U.S. General
Tax-Exempt Cash Portfolio Purpose Average(TM)(1)
------------------------- ----------------------
<S> <C> <C>
Year ended 10/31/98 3.41% 3.02%
Five Years ended 10/31/98 3.30% 2.92%
Inception (11/10/88) through 10/31/98 3.92% 3.55%
</TABLE>
7-Day(2) 7-Day(2)
Tax-Exempt Cash Portfolio Yield Effective Yield
- ------------------------- -------- ---------------
As of 10/31/98 2.89% 2.93%
The Tax-Exempt Cash Portfolio has outperformed IBC's General Purpose Average(TM)
in all of the periods shown above. During the past fiscal year, the strategy of
maintaining a shorter average maturity, which increases yield when rates rise or
when there is a greater supply of short-term securities, combined with a low
expense ratio has resulted in good relative performance.
Hypothetical Illustration of $10,000 Invested in
Tax-Exempt Cash Portfolio vs.
IBC's Stock Broker and General Purpose Tax-Free Average(TM)
11/10/88 through 10/31/98
Tax-Exempt Cash Portfolio
Glenmede IBC's Stock Broker
Tax-Exempt and General Purpose
Cash Portfolio Tax-Free Average
-------------- -------------------
Nov. 1988 10000 10000
Oct. 1989 10627 10546
Oct. 1990 11249 11127
Oct. 1991 11792 11623
Oct. 1992 12183 11953
Oct. 1993 12469 12191
Oct. 1994 12776 12452
Oct. 1995 13257 12864
Oct. 1996 13710 13254
Oct. 1997 14184 13657
Oct. 1998 14667 14154
$14,667
$14,154
* Assumes the reinvestment of all dividends and distributions.
1 IBC's Stock Broker and General Purpose Tax-Free Average(TM) is comprised of
money market funds investing in fixed-income securities issued by state and
local government. Generally, interest payments on securities qualify for
exemption from Federal income taxes. Funds may also own municipal
securities subject to alternative minimum tax. Funds included in this
average must have at least $100,000 in total net assets.
2 "Current yield" refers to the income generated by an investment in the Fund
over a 7-day period. This income is then "annualized". The "effective
yield" is calculated similarly but, when annualized, the income earned by
an investment in the Fund is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because of the
compounding effect of this assumed reinvestment. The yield quotation more
closely reflects the current earnings of the Fund than the total return
quotation.
4
<PAGE>
THE GLENMEDE FUND, INC.
Core Fixed Income Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
Average Annual Total Return
<TABLE>
<CAPTION>
Lehman
Merrill Lynch Brothers Lipper
1-10 Year Aggregate Intermediate
Core Fixed Government/ Bond U.S. Government
Income Portfolio Treasury Index Index Fund Index*
---------------- -------------- --------- ---------------
<S> <C> <C> <C> <C>
Year ended 10/31/98 9.32% 9.81% 9.34% 8.91%
Five Years ended 10/31/98 6.44% 6.48% 7.02% 5.94%
Inception (11/17/88) through 10/31/98 8.63% 8.39% 9.08% 6.71%
</TABLE>
The Core Fixed Income Fund outperformed the Lipper Intermediate U.S. Government
Fund Index and matched the return of the Lehman Brothers Aggregate Bond Index
during fiscal year 1998. The portfolio's strong performance can be attributed to
the investment manager's disciplined investment style. The fund is invested to
seek total return consistent with reasonable risk and close-to-market interest
rate risk.
Hypothetical Illustration of $10,000 Invested in
Core Fixed Income Portfolio vs.
Merrill Lynch 1-10 Year Government/Treasury Index, Lehman Brothers
Aggregate Bond Index and Lipper Intermediate U.S. Government Fund Index*
11/17/88 through 10/31/98
<TABLE>
<CAPTION>
Lehman
Merrill Lynch Brothers Lipper
1-10 Year Aggregate Intermediate
Core Fixed Government/ Bond U.S. Government
Income Portfolio Treasury Index Index Fund Index*
---------------- -------------- --------- ---------------
<S> <C> <C> <C> <C>
Nov. 1988 10000 10000 10000 10000
Oct. 1989 11120 11132 11190 10000
Oct. 1990 12045 11990 11896 10515
Oct. 1991 13821 13572 13777 11937
Oct. 1992 15112 14914 15132 13006
Oct. 1993 16682 16290 16928 14306
Oct. 1994 16177 16017 16307 13746
Oct. 1995 18128 17923 18859 15485
Oct. 1996 19194 18916 19961 16236
Oct. 1997 20850 20304 21736 17472
Oct. 1998 22793 22292 23762 19092
</TABLE>
$23,762
$22,793
$22,292
$19,092
* Index commenced 12/31/89.
** Assumes the reinvestment of all dividends and distributions.
Since 1997 we have compared the portfolios performance to the Lehman Brothers
Aggregate Bond Index and the Lipper Intermediate U.S. Government Fund Index
because we believe they are more appropriate benchmarks to compare to the
Portfolio than the Merrill Lynch 1-10 Year Government/Treasury Index. The Lehman
Brothers Aggregate Bond Index is an unmanaged index comprised of securities from
the Lehman Brothers Government Corporate Bond, Mortgage-Backed Securities and
Asset-Backed Securities Indexes. Total return consists of price
appreciation/depreciation and income as a percentage of the original investment.
Indexes are rebalanced by market capitalization each month. The Lipper
Intermediate U.S. Government Fund Index is comprised of the 30 largest funds in
the Lipper Intermediate U.S. Government Fund Average. The Average consists of
funds that invest at least 65% of their assets in securities issued or
guaranteed by the U.S. government, its agencies or instrumentalities with
dollar-weighted average maturities of 5 to 10 years. The Merrill Lynch 1-10 Year
Government/Treasury Index is an unmanaged Index comprised of U.S. treasury and
agency securities with a par amount outstanding of greater than or equal to $25
million, a maturity range of 1 through 9.99 years and fixed-rate coupon greater
than 4 1/4%.
5
<PAGE>
THE GLENMEDE FUND, INC.
Tax Managed Equity Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
Average Annual Total Return
<TABLE>
<CAPTION>
Dow Jones S&P 500 Lipper
Tax Managed Monthly Stock Growth
Equity Portfolio Reinvested Index Fund Index
---------------- ---------- ------- ----------
<S> <C> <C> <C> <C>
Year ended 10/31/98 7.00% 17.52% 22.01% 13.88%
Five Years ended 10/31/98 18.66% 21.21% 21.30% 16.69%
Inception (7/20/89) through 10/31/98 14.82% 17.04% 16.67% 14.38%
</TABLE>
The Tax Managed Equity Portfolio trailed the S&P 500 Stock Index by a wide
margin over the past year, as investors sought the perceived safety of the
largest capitalization stocks with predictable earnings outlooks. In our view,
these large stocks delivered performance that in many cases discount earnings
growth far into the future, while a number of well-managed, less-recognizable
companies trade at substantial discounts to their future growth potential. We
believe that investors will eventually return to these under appreciated stocks,
resulting in better relative performance for the Fund.
Hypothetical Illustration of $10,000 Invested in
Tax Managed Equity Portfolio vs. S&P 500 Stock Index,
Dow Jones Industrial Average and Lipper Growth Fund Index
7/20/89 through 10/31/98
Equity Portfolio
Glenmede S&P 500 Dow Jones Average
Equity Stock Industrial Index: Lipper
Portfolio Index Average Growth Fund
--------- ------- ---------- -------------
July 1989 10000 10000 10000 10000
Oct. 1989 10127 10200 10424 10167
Oct. 1990 8978 9459 9962 8863
Oct. 1991 12103 12629 12952 12536
Oct. 1992 13146 13885 14036 13515
Oct. 1993 15329 15953 16482 16080
Oct. 1994 15514 16564 17987 16409
Oct. 1995 19203 20936 22479 20343
Oct. 1996 24705 25977 29167 23788
Oct. 1997 33696 34332 36687 30549
Oct. 1998 36054 41835 43084 34792
$43,084
$41,835
$36,054
$34,792
* Assumes the reinvestment of all dividends and distributions.
The S&P 500 Stock Index is an unmanaged index comprised of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange and
Over-The-Counter market. The Dow Jones Industrial Average is an unmanaged price
weighted average based on the "price only" performance of 30 blue chip stocks
(the average is computed by adding the prices of the 30 stocks and dividing by a
denominator which has been adjusted over the years for stock splits, stock
dividends, and substitution of stock). The Lipper Growth Fund Index is comprised
of the 30 largest funds in the Lipper Growth Fund Average. The Average consists
of funds that normally invest in companies whose long-term earnings are expected
to grow significantly faster than the earnings of the stocks represented in the
major unmanaged stock indexes.
6
<PAGE>
THE GLENMEDE FUND, INC.
Small Capitalization Equity Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
Average Annual Total Return
<TABLE>
<CAPTION>
Small Russell S&P 500 Lipper Small
Capitalization 2000 Stock Capitalization
Equity Portfolio Stock Index Index Fund Index
---------------- ----------- ------- --------------
<S> <C> <C> <C> <C>
Year ended 10/31/98 -18.35% -11.84% 22.01% -13.64%
Five Years ended 10/31/98 11.27% 9.41% 21.30% 8.60%
Inception (3/1/91) through 10/31/98 13.34% 13.49% 18.13% 12.59%
</TABLE>
During fiscal year 1998, small capitalization stocks significantly
underperformed large capitalization stocks. The Small Capitalization Equity
Portfolio returns were below the returns of the Russell 2000, the small
capitalization stock index. Contributing to this underperformance were the
strong performance of speculative growth stocks such as internet related
companies over traditional value stocks. Value investing was out of favor in
1998 after outperforming growth for several years.
Hypothetical Illustration of $10,000 Invested in
Small Capitalization Equity Portfolio vs. S&P 500 Stock Index,
Russell 2000 Index and Lipper Small Capitalization Fund Index
3/1/91 through 10/31/98
Small Cap Equity Portfolio
<TABLE>
<CAPTION>
Glenmede Small Capitalization Lipper Small
Equity S&P 500 Russell 2000 Capitalization Fund
Portfolio Stock Index Index
-------------- --------------- ------------ -------------------
<S> <C> <C> <C> <C>
March 1991 10000 10000 10000 10000
Oct. 1991 11184 10828 11696 11887
Oct. 1992 11443 11906 12805 12679
Oct. 1993 15318 13679 16954 16438
Oct. 1994 15754 14203 16902 16766
Oct. 1995 19086 17952 19999 20718
Oct. 1996 22563 22275 23320 24259
Oct. 1997 31993 29438 30161 28766
Oct. 1998 26124 35872 26390 24829
</TABLE>
$35,872
$26,390
$26,124
$24,82
* Assumes the reinvestment of all dividends and distributions.
The S&P 500 Stock Index is an unmanaged index comprised of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange and
Over-The-Counter market. The Russell 2000 Index is an unmanaged capitalization
weighted total return index which is comprised of 2000 of the smallest
capitalized U.S. domiciled companies which are traded in the United States on
the New York Stock Exchange, American Stock Exchange and NASDAQ. The Lipper
Small Capitalization Fund Index is comprised of the 30 largest funds in the
Lipper Small Capitalization Fund Average. The Average consists of funds that
invest primarily in companies with market capitalizations of less than $1
billion at the time of purchase.
7
<PAGE>
------------------------
THE GLENMEDED FUND, INC.
------------------------
LARGE CAP VALUE PORTFOLIO
PORTFOLIO HIGHLIGHTS
October 31, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Average Annual Total Return
- ----------------------------------------------------------------------------------------------
Russell S&P 500 Lipper
1000 Stock Growth
Large Cap Value Portfolio Stock Index Index Fund Index
- ------------------------- ----------- ------- ----------
<S> <C> <C> <C> <C>
Year ended 10/31/98 4.77% 19.71% 22.01% 13.88%
Five Years ended 10/31/98 14.01% 20.50% 21.30% 16.69%
Inception (12/31/92) through 10/31/98 15.95% 19.28% 19.96% 16.34%
- -----------------------------------------------------------------------------------------------
</TABLE>
The Large Cap Value Portfolio is driven by a proprietary ranking process
that seeks value with positive catalysts to signal improvement in a company's
prospects and change in investor expectations. The portfolio's price/earnings
and price/book ratios trade at a significant discount to the S&P 500. During the
past fiscal year, the Large Cap Value Portfolio has underperformed the S&P 500
due to narrow market participation and the outperformance of the "mega-caps".
Prior to March 1996, the Portfolio was managed using a purely quantitative
methodology.
Hypothetical Illustration of $10,000 Invested in
Large Cap Value Portfolio vs. S&P 500 Stock Index
and Lipper Growth Fund Index
12/31/92 through 10/31/98
[GRAPHIC]
In the printed version of the document, a line graph
appears which depicts the following plot points:
Glenmede Large Cap Value Portfolio*
Index: S&P 500 Stock*
Index: Lipper Growth Fund*
Jan. 1993 $10,000 $10,000 $10,000
Oct. 1993 $12,305 $11,023 $11,173
Oct. 1994 $12,194 $11,445 $11,401
Oct. 1995 $14,145 $14,466 $14,134
Oct. 1996 $16,569 $17,949 $16,528
Oct. 1997 $22,625 $23,722 $21,225
Oct. 1998 $23,705 $28,906 $24,174
$28,906
$24,174
$23,705
* Assumes the reinvestment of all dividends and distributions.
- --------------------------------------------------------------------------------
The S&P 500 Stock Index is an unmanaged index comprised of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange and
Over-The-Counter market. The Lipper Growth Fund Index is comprised of the 30
largest funds in the Lipper Growth Fund Average. The Average consists of funds
that normally invest in companies whose long-term earnings are expected to grow
significantly faster than the earnings of the stocks represented in the major
unmanaged stock indexes.
8
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
International Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Average Annual Total Return
- -------------------------------------------------------------------------------------
Morgan Stanley Lipper
EAFE-IX(R) ND International
International Portfolio Weighted Index Fund Index
- ----------------------- -------------- --------------
<S> <C> <C> <C>
Year ended 10/31/98 7.44% 9.65% 4.65%
Five Years ended 10/31/98 11.06% 6.81% 8.20%
Inception (11/17/88) through 10/31/98 11.19% 4.97% 8.72%
- --------------------------------------------------------------------------------------
</TABLE>
Over the past 12 months, the fund has modestly lagged behind EAFE due to
stock selection. During the past 10 years, Glenmede's relative performance
versus EAFE has been due equally to favorable country and stock selection.
Hypothetical Illustration of $10,000 Invested in
International Portfolio vs. Morgan Stanley EAFE-IX(R) ND Weighted Index
and Lipper International Fund Index
11/17/88 through 10/31/98
[GRAPHIC]
In the printed version of the document, a line graph
appears which depicits the following plot points:
Glenmede International Portfolio*
Index: Morgan Stanley EAFE IX(R) ND Weighted*
Index: Lipper International Fund*
Nov. 1988 $10,000 $10,000 $10,000
Oct. 1989 $11,207 $10,481 $11,281
Oct. 1990 $11,685 $9,138 $11,239
Oct. 1991 $13,101 $9,774 $12,180
Oct. 1992 $12,743 $8,482 $11,563
Oct. 1993 $17,007 $11,659 $15,502
Oct. 1994 $19,433 $12,836 $17,286
Oct. 1995 $20,254 $12,789 $17,205
Oct. 1996 $22,982 $14,129 $19,381
Oct. 1997 $26,739 $14,779 $21,968
Oct. 1998 $28,729 $16,205 $22,987
$28,729
$22,987
$16,205
* Assumes the reinvestment of all dividends and distributions excluding
withholding taxes.
- --------------------------------------------------------------------------------
The Morgan Stanley EAFE-IX(R) ND Weighted Index is an unmanaged capitalization
weighted composite portfolio consisting of equity total returns for the
countries of Australasia and New Zealand and countries in Europe and the Far
East. The Lipper International Fund Index is comprised of the 30 largest funds
in the Lipper International Fund Average. The Average consists of funds that
invest in securities whose primary trading markets are outside of the United
States.
9
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Institutional International Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
- --------------------------------------------------------------------------------
Average Annual Total Return
- --------------------------------------------------------------------------------
Morgan Stanley Lipper
EAFE-IX(R) ND International
Institutional International Portfolio Weighted Index Fund Index
- ------------------------------------- -------------- ------------
Year ended 10/31/98 7.26% 9.65% 4.65%
Five Years ended 10/31/98 10.17% 6.81% 8.20%
Inception (8/1/92) through 10/31/98 11.98% 10.68% 10.78%
- --------------------------------------------------------------------------------
Over the past 12 months, the fund has modestly lagged behind EAFE, due to
stock selection. Since Inception, Glenmede's relative performance versus EAFE
has been due equally to favorable country and stock selection.
Hypothetical Illustration of $10,000 Invested in
Institutional International Portfolio vs. Morgan Stanley EAFE-IX(R) ND
Weighted Index and Lipper International Fund Index
8/1/92 through 10/31/98
[GRAPHIC]
In the printed version of the document, a line graph
appears which depicits the following plot points:
Glenmede International Institutional Portfolio*
Index: Morgan Stanley EAFE-IX(R) ND Weighted*
Index: Lipper International Fund*
Aug. 1992 $10,000 $10,000 $10,000
Oct. 1992 $9,440 $9,871 $9,543
Oct. 1993 $12,493 $13,568 $12,793
Oct. 1994 $14,240 $14,937 $14,265
Oct. 1995 $14,294 $14,882 $14,198
Oct. 1996 $16,361 $16,440 $15,994
Oct. 1997 $18,903 $17,202 $18,129
Oct. 1998 $20,276 $18,861 $18,971
$20,276
$18,971
$18,861
* Assumes the reinvestment of all dividends and distributions excluding
withholding taxes.
- --------------------------------------------------------------------------------
The Morgan Stanley EAFE-IX(R) ND Weighted Index is an unmanaged capitalization
weighted composite portfolio consisting of equity total returns for the
countries of Australasia and New Zealand and countries in Europe and the Far
East. The Lipper International Fund Index is comprised of the 30 largest funds
in the Lipper International Fund Average. The Average consists of funds that
invest in securities whose primary trading markets are outside of the United
States.
10
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Average Annual Total Return
- ---------------------------------------------------------------------------------------------------
IFC Index Morgan Stanley Lipper Emerging
Composite Emerging Markets Markets Fund
Emerging Markets Portfolio (Global) Free Index Index
- -------------------------- -------- ----=----------- ------------
<S> <C> <C> <C> <C>
Year ended 10/31/98 -35.14% -29.36% -30.99% -33.17%
Inception (12/14/94) through 10/31/98 -10.92% -12.87% -12.90% -11.53%
- ----------------------------------------------------------------------------------------------------
</TABLE>
In an exceptionally tough year for emerging equity markets the Fund generated
below average returns, although the long term relative performance remains
creditable. The main reason for the underperformance was the Fund's early entry
into the South East Asian markets towards the end of 1997 combined with an
underweighting of the main Latin American markets. The manager's strict
bottom-up valuation methodology was quick to highlight the enormous pricing
differentials between regions but market timing could have been better. The fund
managed to offset most of these negative effects with a strong performance in
Europe, particularly in Greece and Turkey. In addition, after exceptionally
strong contributions between 1995 and 1997, the Fund finally exited the Russian
market in the second half of 1997, an auspiciously timed move which generated a
significant relative performance contribution during the year. It is gratifying
to see the long Asia short Latin America stance which the Fund has adopted
gradually starting to generate some useful outperformance in the closing stages
of 1998, a trend which we expect to continue into 1999.
Hypothetical Illustration of $10,000 Invested in
Emerging Markets Portfolio vs. Morgan Stanley Emerging Markets
Free Index, IFC Composite and Lipper Emerging Markets Fund Index
12/14/94 through 10/31/98
[GRAPHIC]
In the printed version of the document, a line graph
appears which depicits the following plot points:
Glenmede Emerging Markets Portfolio*
Index: Morgan Stanley Emerging Markets Free*
Index: IFC Composite*
Index: Lipper Emerging Markets Fund*
Dec. 1994 $10,000 $10,000 $10,000 $10,000
Apr. 1995 $10,300 $8,624 $8,592 $8,730
Oct. 1995 $9,829 $8,700 $8,511 $8,823
Oct. 1996 $9,735 $9,265 $9,123 $9,667
Oct. 1997 $9,833 $8,479 $8,296 $9,295
Oct. 1998 $6,385 $5,852 $5,859 $6,216
$6,385
$5,852
$5,859
$6,216
* Assumes the reinvestment of all dividends and distributions excluding
withholding taxes.
- --------------------------------------------------------------------------------
The Morgan Stanley Emerging Markets Free Index is an unmanaged measure of the
performance of the major emerging economies with sizable and active equity
markets in Asia, Latin America, the Middle East, Africa and Europe. Only those
countries open to non-local investors are included. The IFC Composite is an
unmanaged measure of the performance of stock markets in countries with
developing economies, especially those meeting World Bank classifications of
low-income and middle-income, but may include high-income economies where the
stock market is likely to be developing for some time. Markets are included in
Latin America, East Asia and Europe/MidEast/Africa. The Lipper Emerging Markets
Fund Index is comprised of the 30 largest funds in the Lipper Emerging Markets
Fund Average. The Average consists of funds that seek long-term capital
appreciation by investing at least 65% of their assets in emerging market equity
securities. An emerging market is defined by a country's Gross National Product
per capita or other economic measures.
11
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Global Equity Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
- ----------------------------------------------------------------------------
Average Cumulative Total Return
- ----------------------------------------------------------------------------
MSCI MSCI
EAFE World IX
IX ND(R) UK IX ND
Global Equity Portfolio Index Index
- ----------------------- -------- ---------
Inception (11/4/97) through 10/31/98 2.29% 10.77% 7.70%
- ---------------------------------------------------------------------------
The Fund's performance has lagged the index for two reasons. First, the
U.S. market, which has outperformed EAFE, was underweighted. Second, stock
selection in Japan and the U.S. was behind the respective country indices.
Hypothetical Illustration of $10,000 Invested in Global Equity Portfolio
vs. Morgan Stanley EAFE-IX ND(R) Weighted Index and
Morgan Stanley World-IX ND(R) Weighted Index
Inception through 10/31/98
[GRAPHIC]
In the printed version of the document, a line graph
appears which depicits the following plot points:
Glenmede Global Equity Portfolio*
Index: Morgan Stanley EAFE-IX ND(R) Weighted*
Index: Morgan Stanley World-IX ND(R) Weighted*
Nov. 1997 $10,000 $10,000 $10,000
Apr. 1998 $11,178 $11,663 $11,681
Oct. 1998 $10,229 $11,077 $10,770
$11,077
$10,770
$10,229
* Assumes the reinvestment of all dividends and distributions excluding
withholding taxes.
- --------------------------------------------------------------------------------
The Morgan Stanley EAFE-IX(R) ND Weighted Index is an unmanaged capitalization
weighted composite portfolio consisting of equity total returns for the
countries of Australia and New Zealand and countries in Europe and the Far East.
The Morgan Stanley Capital International (MSCI) Index is an unmanaged
capitalization weighted portfolio consisting of equity total returns for the
countries of Australia and New Zealand and countries in Europe, the Far East,
and North America.
12
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Average Annual Total Return
- ----------------------------------------------------------------------------------------------
Lehman Lehman Lipper Intermediate
Brothers Muni Brothers Muni Municipal Debt
Muni Intermediate Portfolio 5-Year Index 7-Year Index Fund Index
- ---------------------------- ------------ ------------ ----------
<S> <C> <C> <C> <C>
Year ended 10/31/98 5.77% 6.52% 7.39% 6.78%
Five Years ended 10/31/98 5.04% 5.37% 5.89% 5.23%
Inception (6/5/92) through 10/31/98 5.67% 6.27% 7.03% 6.33%
- -----------------------------------------------------------------------------------------------
</TABLE>
The Municipal Intermediate Portfolio has underperformed the Lehman 5-Year
Index this year. This is primarily because this fund is set up as a defensive
portfolio seeking high current income and with short duration.
Hypothetical Illustration of $10,000 Invested
in Muni Intermediate Portfolio vs. Lehman Brothers
Municipal 5-Year Bond Index and Lipper Intermediate
Municipal Debt Fund Index
6/5/92 through 10/31/98
[GRAPHIC]
In the printed version of the document, a line graph
appears which depicits the following plot points:
Glenmede Muni Intermediate Portfolio*
Index: Lipper Intermediate Municipal Debt Fund*
Index: Lehman Brothers Municipal 5-Year Bond*
June 1992 $10,000 $10,000 $10,000 $10,000
Oct. 1992 $10,074 $10,366 $10,287 $10,360
Oct. 1993 $11,137 $11,607 $11,484 $11,375
Oct. 1994 $10,788 $11,388 $11,194 $11,314
Oct. 1995 $12,057 $12,792 $12,419 $12,479
Oct. 1996 $12,621 $13,388 $12,951 $13,049
Oct. 1997 $13,465 $14,387 $13,801 $13,872
Oct. 1998 $14,241 $15,451 $14,814 $14,779
$14,814
$14,779
$14,241
* Assumes the reinvestment of all dividends and distributions.
- --------------------------------------------------------------------------------
The Lehman Brothers Municipal 5-Year Bond Index are unmanaged total return
performance benchmarks for the intermediate-term and short-intermediate,
investment-grade tax-exempt bond markets, respectively. The Lipper Intermediate
Municipal Debt Fund Index is comprised of the 30 largest funds in the Lipper
Intermediate Municipal Debt Fund Average. The Average consists of funds that
invest in municipal debt issues with dollar-weighted average maturities of 5 to
10 years. In the future, we will compare the Portfolio's performance only to the
Lehman Brothers Municipal 5-Year Bond Index and the Lipper Intermediate
Municipal Debt Fund Index because we believe they are more appropriate
benchmarks to compare to the Portfolio than the Lehman Brothers Municipal 7-Year
Bond Index.
13
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
New Jersey Muni Portfolio
PORTFOLIO HIGHLIGHTS
October 31, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Average Annual Total Return
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lehman Lehman Lipper New Jersey
Brothers Muni Brothers Muni Municipal Debt
New Jersey Portfolio 5-Year Index 7-Year Index Fund Index
- ---------------------- ------------- -------------- -----------------
Year ended 10/31/98 6.71% 6.52% 7.39% 7.44%
Inception (11/1/93) through 10/31/98 5.03% 5.43% 5.89% 5.47%
- ---------------------------------------------------------------------------------------------------
</TABLE>
The New Jersey Municipal Portfolio performed well this year versus the
Lehman 5-Year Index. This is due to the fact that the portfolio has many
non-callable, current coupon bonds which tend to rise quickly in price in a
strong market.
Hypothetical Illustration of $10,000 Invested
in New Jersey Muni Portfolio vs. Lehman Brothers
Municipal 5-Year Bond Index and Lipper New Jersey Municipal
Debt Fund Index
11/1/93 through 10/31/98
[GRAPHIC]
In the printed version of the document, a line graph
appears which depicits the following plot points:
Glenmede New Jersey Muni Portfolio*
Index: Lipper New Jersey Municipal Debt Fund*
Index: Lehman Brothers Municipal 5-Year Bond*
Nov. 1993 $10,000 $10,000 $10,000 $10,000
Oct. 1994 $9,488 $9,812 $9,484 $9,946
Oct. 1995 $10,744 $11,021 $10,745 $10,971
Oct. 1996 $11,200 $11,535 $11,245 $11,471
Oct. 1997 $11,973 $12,395 $12,080 $12,195
Oct. 1998 $12,777 $13,312 $13,050 $13,024
$13,312
$13,050
$13,024
* Assumes the reinvestment of all dividends and distributions.
- --------------------------------------------------------------------------------
The Lehman Brothers Municipal 5-Year Bond Index are unmanaged total return
performance benchmarks for the intermediate-term and short-intermediate,
investment-grade tax-exempt bond markets, respectively. The Lipper New Jersey
Municipal Debt Fund Index consists of the 10 largest funds in the Lipper New
Jersey Municipal Debt Fund Average. The Average consists of funds that invest
only in securities that are exempt from taxation in New Jersey or cities in New
Jersey.
14
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
STATEMENTS OF OPERATIONS
For the year ended October 31, 1998
<TABLE>
<CAPTION>
Tax- Core
Government Exempt Fixed
Cash Cash Income
Portfolio Portfolio Portfolio
----------- ----------- -----------
<S> <C> <C> <C>
Investment income:
Dividends (net of foreign withholding taxes)(1) $ -- $ -- $ --
Interest 26,039,696 10,251,765 19,766,184
Other income(2) -- -- 7,251
----------- ----------- -----------
Total investment income 26,039,696 10,251,765 19,773,435
----------- ----------- -----------
Expenses:
Investment advisory fee -- -- --
Administration fee 172,208 109,335 93,997
Shareholder servicing fee 232,765 147,783 130,578
Custodian fee 27,835 12,259 16,268
Directors' fees and expenses 8,914 4,109 6,249
State franchise taxes 37,827 19,317 20,002
Registration and filing fees -- 29,914 6,977
Interest expense -- -- 2,283,843
Pricing fees 3,835 25,765 4,536
Other expenses 17,224 26,526 18,269
----------- ----------- -----------
Total expenses 500,608 375,008 2,580,719
----------- ----------- -----------
Net investment income 25,539,088 9,876,757 17,192,716
----------- ----------- -----------
Realized and unrealized gain/(loss):
Net realized gain/(loss) on:
Securities transactions -- (7,168) 2,139,605
Foreign currency transactions -- -- --
----------- ----------- -----------
Net realized gain/(loss) -- (7,168) 2,139,605
----------- ----------- -----------
Net change unrealized appreciation/
depreciation of:
Securities -- -- 3,989,062
Foreign currency translation -- -- --
----------- ----------- -----------
Net unrealized appreciation/depreciation -- -- 3,989,062
----------- ----------- -----------
Net realized and unrealized gain/(loss) -- (7,168) 6,128,667
----------- ----------- -----------
Net increase/(decrease) in net assets
resulting from operations $25,539,088 $ 9,869,589 $23,321,383
=========== =========== ===========
</TABLE>
(1) The Tax Managed Equity Portfolio, International Portfolio, Institutional
International Portfolio, Emerging Markets Portfolio and Global Equity
Portfolio had foreign dividend withholding taxes of $7,384, $3,879,248
$306,586, $158,541, and $58,099 respectively.
(2) Income from security lending.
See Notes to Financial Statements.
16
<PAGE>
<TABLE>
<CAPTION>
Tax Small
Managed Capitalization Large Cap Institutional Emerging Global
Equity Equity Value International International Markets Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ------------ ---------- ----------- ----------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends (net of foreign withholding
taxes)(1) $2,625,466 $7,458,458 $1,305,343 $25,848,410 $2,015,987 $1,576,712 $537,144
Interest 253,946 245,005 74,254 2,378,418 303,181 34,274 57,570
Other income(2) 23,843 97,880 8,925 473,218 33,549 -- 482
---------- ------------ ---------- ----------- ----------- ------------ --------
Total investment income 2,903,255 7,801,343 1,388,522 28,700,046 2,352,717 1,610,986 595,196
---------- ------------ ---------- ----------- ----------- ------------ --------
Expenses:
Investment advisory fee -- 1,965,405 -- -- 718,993 951,111 178,727
Administration fee 58,477 171,862 27,783 430,419 36,343 28,180 9,297
Shareholder servicing fee 79,117 865,621 37,371 621,378 5,626 6,490 9,322
Custodian fee 10,385 27,163 4,683 203,664 14,608 381,986 2,975
Directors' fees and expenses 3,456 8,379 1,390 14,768 1,720 2,548 555
State franchise taxes 9,033 28,200 5,400 110,460 8,191 8,166 1,732
Registration and filing fees 12,315 28,375 3,148 51,693 31,189 2,011 9,626
Interest expense -- -- -- -- -- -- --
Pricing fees -- -- -- -- 8,407 10,875 3,147
Other expenses 21,212 127,981 11,677 60,536 9,461 18,641 12,203
---------- ------------ ---------- ----------- ----------- ------------ --------
Total expenses 193,995 3,222,986 91,452 1,492,918 834,538 1,410,008 227,584
---------- ------------ ---------- ----------- ----------- ------------ --------
Net investment income 2,709,260 4,578,357 1,297,070 27,207,128 1,518,179 200,978 367,612
---------- ------------ ---------- ----------- ----------- ------------ --------
Realized and unrealized gain/(loss):
Net realized gain/(loss) on:
Securities transactions 3,253,783 2,460,188 8,925,375 (21,332,558) (1,822,717) (32,861,279) (407,213)
Foreign currency transactions -- -- -- 987,491 58,237 (549,596) (21,800)
---------- ------------ ---------- ----------- ----------- ------------ --------
Net realized gain/(loss) 3,253,783 2,460,188 8,925,375 (20,345,067) (1,764,480) (33,410,875) (429,013)
---------- ------------ ---------- ----------- ----------- ------------ --------
Net change unrealized appreciation/
depreciation of:
Securities 3,805,619 (88,260,179) (6,891,265) 71,680,523 5,361,413 940,185 657,936
Foreign currency translation -- -- -- 32,072 3,986 (113,826) 1,614
---------- ------------ ---------- ----------- ----------- ------------ --------
Net unrealized
appreciation/depreciation 3,805,619 (88,260,179) (6,891,265) 71,712,595 5,365,399 826,359 659,550
---------- ------------ ---------- ----------- ----------- ------------ --------
Net realized and unrealized gain/(loss) 7,059,402 (85,799,991) 2,034,110 51,367,528 3,600,919 (32,584,516) 230,537
---------- ------------ ---------- ----------- ----------- ------------ --------
Net increase/(decrease) in net assets
resulting from operations $9,768,662 $(81,221,634) $3,331,180 $78,574,656 $ 5,119,098 $(32,383,538) $598,149
========== ============ ========== =========== =========== ============ ========
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended October 31, 1998
<TABLE>
<CAPTION>
Tax- Core
Government Exempt Fixed
Cash Cash Income
Portfolio Portfolio Portfolio
------------ ------------ ------------
<S> <C> <C> <C>
Net investment income $ 25,539,088 $ 9,876,757 $ 17,192,716
Net realized gain/(loss) on:
Securities transactions -- (7,168) 2,139,605
Foreign currency transactions -- -- --
Net change in unrealized appreciation/
depreciation of:
Securities -- -- 3,989,062
Foreign currency translation -- -- --
------------ ------------ ------------
Net increase/(decrease) in net assets resulting
from operations 25,539,088 9,869,589 23,321,383
Distributions to shareholders from:
Net investment income (25,539,088) (9,876,757) (17,307,852)
Net realized gain on investments -- -- --
Net increase/(decrease) in net assets from
capital share transactions (20,872,453) 94,981,854 (13,760,110)
------------ ------------ ------------
Net increase/(decrease) in net assets (20,872,453) 94,974,686 (7,746,579)
NET ASSETS:
Beginning of year 451,037,538 280,949,737 266,732,763
------------ ------------ ------------
End of year $430,165,085 $375,924,423 $258,986,184
============ ============ ============
- -----------------------------------------------------------------------------------------------
</TABLE>
For the year ended October 31, 1997
<TABLE>
<CAPTION>
Tax- Core
Government Exempt Fixed
Cash Cash Income
Portfolio Portfolio Portfolio
------------ ------------ ------------
<S> <C> <C> <C>
Net investment income $ 25,219,397 $ 8,878,271 $ 17,326,169
Net realized gain/(loss) on:
Securities transactions (7,815) -- 2,260,378
Foreign currency transactions -- -- --
Net change in unrealized appreciation/
depreciation of:
Securities -- -- 1,480,988
Foreign currency translation -- -- --
------------ ------------ ------------
Net increase/(decrease) in net assets resulting
from operations 25,211,582 8,878,271 21,067,535
Distributions to shareholders:
From net investment income (25,219,397) (8,878,271) (17,221,980)
From net realized gain on investments -- -- --
In excess of net investment income -- -- --
Net increase/(decrease) in net assets from
capital share transactions (1,349,184) 55,950,635 3,384,486
------------ ------------ ------------
Net increase/(decrease) in net assets (1,356,999) 55,950,635 7,230,041
NET ASSETS:
Beginning of year 452,394,537 224,999,102 259,502,722
------------ ------------ ------------
End of year $451,037,538 $280,949,737 $266,732,763
============ ============ ============
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
<TABLE>
<CAPTION>
Tax Small
Managed Capitalization Large Cap Institutional Emerging Global
Equity Equity Value International International Markets Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ----------- -------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 2,709,260 $ 4,578,357 $ 1,297,070 $ 27,207,128 $ 1,518,179 $ 200,978 $ 367,612
Net realized gain/(loss) on:
Securities transactions 3,253,783 2,460,188 8,925,375 (21,332,558) (1,822,717) (32,861,279) (407,213)
Foreign currency transactions -- -- -- 987,491 58,237 (549,596) (21,800)
Net change in unrealized
appreciation/depreciation of:
Securities 3,805,619 (88,260,179) (6,891,265) 71,680,523 5,361,413 940,185 657,936
Foreign currency translation -- -- -- 32,072 3,986 (113,826) 1,614
------------ ------------ ----------- -------------- ---------- ----------- -----------
Net increase/(decrease) in net
assets resulting from operations 9,768,662 (81,221,634) 3,331,180 78,574,656 5,119,098 (32,383,538) 598,149
Distributions to shareholders from:
Net investment income (2,647,424) (4,508,564) (1,322,089) (29,290,284) (1,718,496) -- (287,500)
Net realized gain on investments (3,246,929) (2,643,414) (9,224,403) (11,518,026) (943,135) -- (175,000)
Net increase/(decrease) in net
assets from capital share
transactions 8,231,775 (6,892,431) 2,658,292 46,323,409 14,611,047 (6,839,917) 25,175,000
------------ ------------ ----------- -------------- ---------- ----------- -----------
Net increase/(decrease) in net
assets 12,106,084 (95,266,043) (4,557,020) 84,089,755 17,068,514 (39,223,455) 25,310,649
NET ASSETS:
Beginning of year 140,494,554 434,656,049 71,177,359 1,051,102,050 81,658,594 95,012,058 --
------------ ------------ ----------- -------------- ---------- ----------- -----------
End of year $152,600,638 $339,390,006 $66,620,339 $1,135,191,805 $98,727,108 $55,788,603 $25,310,649
============ ============ =========== ============== =========== =========== ===========
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
For the year ended October 31, 1997
<TABLE>
<CAPTION>
Small
Capitalization Large Cap Institutional Emerging
Equity Equity Value International International Markets
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ----------- -------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 2,279,789 $ 7,568,820 $ 1,372,805 $ 24,876,243 $ 1,458,343 $ 312,101
Net realized gain/(loss) on:
Securities transactions 14,776,696 66,336,844 11,569,530 39,575,586 3,099,441 5,969,186
Foreign currency transactions -- -- -- (1,313,479) (76,211) (347,790)
Net change in unrealized appreciation/
depreciation of:
Securities 19,009,171 55,995,170 6,599,382 63,720,908 5,329,295 (6,445,695)
Foreign currency translation -- -- -- 50,719 8,486 46,409
------------ ------------ ----------- -------------- ----------- -----------
Net increase/(decrease) in net assets
resulting from operations 36,065,656 129,900,834 19,541,717 126,909,977 9,819,354 (465,789)
Distributions to shareholders:
From net investment income (2,304,679) (7,291,159) (1,367,809) (22,423,961) (1,188,327) (238,483)
From net realized gain on investments (14,776,695) (66,437,876) (10,947,814) (39,511,477) (3,055,675) (5,576,979)
In excess of net investment income -- -- -- (4,393,736) (465,613)
Net increase/(decrease) in net assets
from capital share transactions 27,325,398 70,068,841 13,820,313 347,062,599 18,158,706 14,908,795
------------ ------------ ----------- -------------- ----------- -----------
Net increase/(decrease) in net assets 46,309,680 126,240,639 21,046,407 407,643,402 23,268,445 8,627,544
NET ASSETS:
Beginning of year 94,184,874 308,415,410 50,130,952 643,458,648 58,390,149 86,384,514
------------ ------------ ----------- -------------- ----------- -----------
End of year $140,494,554 $434,656,049 $71,177,359 $1,051,102,050 $81,658,594 $95,012,058
============ ============ =========== ============== =========== ===========
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Government Cash Portfolio
-----------------------------------------------
Year Ended October 31,
-----------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
Net asset value, beginning
of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Net investment income 0.051 0.054 0.053 0.059 0.038
Distributions from net
investment income (0.051) (0.054) ( 0.053) (0.059) (0.038)
-------- -------- -------- -------- --------
Net asset value, end
of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return(1) 5.63% 5.53% 5.46% 5.87% 3.78%
======== ======== ======== ======== ========
Ratios to average net
assets/Supplemental data:
Net assets, end of year
(in 000's) $430,165 $451,038 $452,395 $408,605 $353,405
Ratio of operating expenses to
average net assets 0.11% 0.13% 0.16% 0.15% 0.11%
Ratio of net investment income to
average net assets 5.41% 5.39% 5.32% 5.71% 3.82%
- --------------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
20
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Tax-Exempt Cash Portfolio
-----------------------------------------------
Year Ended October 31,
-----------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
Net asset value, beginning
of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Net investment income 0.034 0.034 0.034 0.038 0.025
Distributions from net
investment income (0.034) (0.034) (0.034) (0.038) (0.025)
-------- -------- -------- -------- --------
Net asset value, end
of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return(1) 3.41% 3.46% 3.42% 3.76% 2.48%
======== ======== ======== ======== ========
Ratios to average net
assets/Supplemental data:
Net assets, end of year
(in 000's) $375,924 $280,950 $224,999 $222,808 $222,985
Ratio of operating expenses
to average net assets 0.13% 0.14% 0.15% 0.15% 0.13%
Ratio of net investment income
to average net assets 3.37% 3.40% 3.36% 3.69% 2.52%
- -----------------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
21
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
<TABLE>
<CAPTION>
Core Fixed Income Portfolio
-----------------------------------------------
Year Ended October 31,
-----------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 10.46 $ 10.29 $ 10.36 $ 9.89 $ 10.84
-------- -------- -------- -------- --------
Income from investment
operations:
Net investment income 0.64 0.68 0.66 0.69 0.64
Net realized and unrealized
gain/(loss) on investment 0.24 0.17 (0.08) 0.46 (0.96)
-------- -------- -------- -------- --------
Total from investment
operations 0.88 0.85 0.58 1.15 (0.32)
-------- -------- -------- -------- --------
Less Distributions from:
Net investment income (0.64) (0.68) (0.65) (0.68) (0.63)
Net realized capital gains -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions (0.64) (0.68) (0.65) (0.68) (0.63)
-------- -------- -------- -------- --------
Net asset value, end of year $ 10.70 $ 10.46 $ 10.29 $ 10.36 $ 9.89
======== ======== ======== ======== ========
Total Return(1) 9.32% 8.63% 5.88% 12.06% (3.03)%
======== ======== ======== ======== ========
Ratios to average net
assets/Supplemental data:
Net assets, end of year
(in 000's) $258,986 $266,733 $259,503 $342,874 $333,797
Ratio of operating expenses to
average net assets 0.11% 0.13% 0.16% 0.11% 0.12%
Ratio of gross expenses to
average net assets 0.99%(2) 0.43%(2) 0.16% 0.11% 0.14%(2)
Ratio of net investment income to
average net assets 6.58% 6.67% 6.37% 6.67% 6.06%
Portfolio turnover rate 93% 307% 47% 228% 165%
</TABLE>
- ---------------
(1) Total return represents aggregate total return for the period indicated.
(2) The annualized gross expense ratio includes interest expense. The ratios
excluding interest expense for the years ended October 31, 1998, October 31,
1997, October 31, 1994 were 0.11%, 0.13% and 0.12%, respectively.
See Notes to Financial Statements.
22
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Tax Managed Equity Portfolio
-----------------------------------------------
Year Ended October 31,
-----------------------------------------------
1998 1997 1996 1995 1994
-------- -------- ------- ------- -------
Net asset value, beginning
of year $ 20.11 $ 16.79 $ 14.67 $ 12.56 $ 13.23
-------- -------- ------- ------- -------
Income from investment
operations:
Net investment income 0.37 0.28 0.41 0.32 0.31
Net realized and unrealized
gain/(loss) on investments 1.02 5.69 3.73 2.64 (0.17)
-------- -------- ------- ------- -------
Total from investment
operations 1.39 5.97 4.14 2.96 0.14
-------- -------- ------- ------- -------
Less Distributions from:
Net investment income (0.36) (0.28) (0.40) (0.33) (0.29)
Net realized capital gains (0.45) (2.37) (1.62) (0.52) (0.52)
-------- -------- ------- ------- -------
Total distributions (0.81) (2.65) (2.02) (0.85) (0.81)
-------- -------- ------- ------- -------
Net asset value, end of year $ 20.69 $ 20.11 $ 16.79 $ 14.67 $ 12.56
======== ======== ======= ======= =======
Total Return(1) 7.00% 36.39% 28.65% 23.78% 1.21%
======== ======== ======= ======= =======
Ratios to average net
assets/Supplemental data:
Net assets, end of year
(in 000's) $152,601 $140,495 $94,185 $80,157 $64,046
Ratio of operating expenses to
average net assets 0.12% 0.13% 0.17% 0.14% 0.16%
Ratio of net investment income
to average net assets 1.71% 1.91% 2.26% 2.32% 2.40%
Portfolio turnover rate 52% 26% 36% 70% 109%
- ----------------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
23
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
<TABLE>
<CAPTION>
Small Capitalization Equity Portfolio Advisor Class
--------------------------------------------------------
Year Ended October 31,
--------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 19.06 $ 16.12 $ 14.98 $ 13.95 $ 13.97
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.19 0.38 0.33 0.28 0.16
Net realized and unrealized gain/(loss)
on investment (3.66) 6.32 2.38 2.69 0.23
-------- -------- -------- -------- --------
Total from investment operations (3.47) 6.70 2.71 2.97 0.39
-------- -------- -------- -------- --------
Less Distributions from:
Net investment income (0.19) (0.37) (0.33) (0.26) (0.15)
Net realized capital gains (0.12) (3.39) (1.24) (1.68) (0.26)
-------- -------- -------- -------- --------
Total distributions (0.31) (3.76) (1.57) (1.94) (0.41)
-------- -------- -------- -------- --------
Net asset value, end of year $ 15.28 $ 19.06 $ 16.12 $ 14.98 $ 13.95
======== ======== ======== ======== ========
Total Return(1) (18.35)% 41.80% 18.22% 21.15% 2.85%
======== ======== ======== ======== ========
Ratios to average net assets/Supplemental data:
Net assets, end of year (in 000's) $307,596 $434,656 $308,415 $170,969 $109,872
Ratio of operating expenses to
average net assets 0.76% 0.12% 0.17% 0.14% 0.14%
Ratio of net investment income to
average net assets 1.07% 2.00% 2.15% 1.92% 1.18%
Portfolio turnover rate 42% 59% 37% 57% 31%
</TABLE>
- ----------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
24
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
Small Capitalization Portfolio
Institutional Shares
------------------------------
For the Period
January 2, 1998*
through October 31, 1998
------------------------------
Net asset value, beginning of period $ 19.33
-------
Income from investment operations:
Net investment income 0.15
Net realized and unrealized loss on investment (3.94)
-------
Total from investment operations (3.79)
-------
Less Distributions from:
Net investment income (0.13)
Net realized capital gains (0.12)
-------
Total distributions (0.25)
-------
Net asset value, end of period $ 15.29
=======
Total Return(1) (19.69)%
=======
Ratios to average net assets/Supplemental data:
Net assets, end of period (in 000's) $31,794
Ratio of operating expenses to average net assets 0.69%**
Ratio of net investment income to
average net assets 1.07%**
Portfolio turnover rate 42%
- ----------
(1) Total return represents aggregate total return for the period indicated.
* Commencement of operations.
** Annualized.
See Notes to Financial Statements.
25
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
<TABLE>
<CAPTION>
Large Cap Value Portfolio
-------------------------------------------------------
Year Ended October 31,
-------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 13.29 $ 11.68 $ 10.34 $ 10.62 $ 10.92
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.24 0.29 0.26 0.32 0.21
Net realized and unrealized
gain/(loss) on investment 0.35 3.95 1.49 1.38 (0.31)
------- ------- ------- ------- -------
Total from investment operations 0.59 4.24 1.75 1.70 (0.10)
------- ------- ------- ------- -------
Less Distributions from:
Net investment income (0.25) (0.29) (0.27) (0.31) (0.20)
Net realized capital gains (1.86) (2.34) (0.14) (1.67) --
------- ------- ------- ------- -------
Total distributions (2.11) (2.63) (0.41) (1.98) (0.20)
------- ------- ------- ------- -------
Net asset value, end of year $ 11.77 $ 13.29 $ 11.68 $ 10.34 $ 10.62
======= ======= ======= ======= =======
Total Return(1) 4.77% 36.55% 17.13% 16.01% (0.91)%
======= ======= ======= ======= =======
Ratios to average net
assets/Supplemental data:
Net assets, end of year (in 000's) $66,620 $71,177 $50,131 $15,981 $20,654
Ratio of operating expenses to
average net assets 0.12% 0.13% 0.15% 0.20% 0.24%
Ratio of net investment income to
average net assets 1.74% 2.10% 2.62% 2.80% 2.04%
Portfolio turnover rate 132% 109% 104% 227% 287%
</TABLE>
- ----------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
26
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
<TABLE>
<CAPTION>
International Portfolio
------------------------------------------------------------
Year Ended October 31,
------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 15.11 $ 13.87 $ 12.70 $ 13.04 $ 12.69
---------- ---------- -------- -------- --------
Income from investment operations:
Net investment income 0.37 0.39 0.40 0.32 0.27
Net realized and unrealized
gain on investment 0.74 1.89 1.29 0.23 1.50
---------- ---------- -------- -------- --------
Total from investment operations 1.11 2.28 1.69 0.55 1.77
---------- ---------- -------- -------- --------
Less Distributions from:
Net investment income (0.40) (0.35) (0.43) (0.32) (0.25)
Net realized capital gains (0.16) (0.62) (0.04) (0.57) (1.16)
In excess of net realized gains -- -- (0.05) -- (0.01)
In excess of net investment income -- (0.07) -- -- --
---------- ---------- -------- -------- --------
Total distributions (0.56) (1.04) (0.52) (0.89) (1.42)
---------- ---------- -------- -------- --------
Net asset value, end of year $ 15.66 $ 15.11 $ 13.87 $ 12.70 $ 13.04
========== ========== ======== ======== ========
Total Return(1) 7.44% 16.35% 13.47% 4.23% 14.26%
========== ========== ======== ======== ========
Ratios to average net
assets/Supplemental data:
Net assets, end of year (in 000's) $1,135,192 $1,051,102 $643,459 $343,209 $292,513
========== ========== ======== ======== ========
Ratio of operating expenses to
average net assets 0.13% 0.14% 0.18% 0.18% 0.16%
Ratio of net investment income to
average net assets 2.32% 2.77% 3.05% 2.61% 2.11%
Portfolio turnover rate 19% 15% 6% 24% 39%
</TABLE>
- ----------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
27
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
<TABLE>
<CAPTION>
Institutional International Portfolio
---------------------------------------------------------
Year Ended October 31,
---------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 14.89 $ 13.67 $ 12.34 $ 12.63 $ 12.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.26 0.27 0.28 0.19 0.16
Net realized and unrealized
gain/(loss) on investment 0.81 1.86 1.50 (0.13) 1.49
------- ------- ------- ------- -------
Total from investment operations 1.07 2.13 1.78 0.06 1.65
------- ------- ------- ------- -------
Less Distributions from:
Net investment income (0.28) (0.22) (0.25) (0.18) (0.13)
Net realized capital gains (0.15) (0.61) (0.14) (0.17) (0.87)
In excess of net realized gains -- -- (0.06) -- (0.02)
In excess of net investment income -- (0.08) -- -- --
------- ------- ------- ------- -------
Total distributions (0.43) (0.91) (0.45) (0.35) (1.02)
------- ------- ------- ------- -------
Net asset value, end of year $ 15.53 $ 14.89 $ 13.67 $ 12.34 $ 12.63
======= ======= ======= ======= =======
Total Return(1) 7.26% 15.54% 14.46% 0.38% 13.85%
======= ======= ======= ======= =======
Ratios to average net
assets/Supplemental data:
Net assets, end of year (in 000's) $98,727 $81,659 $58,390 $44,206 $17,076
Ratio of operating expenses to
average net assets 0.87% 0.87% 0.95% 0.93% 1.00%
Ratio of net investment income to
average net assets 1.58% 1.94% 2.06% 1.78% 1.29%
Portfolio turnover rate 19% 15% 10% 25% 39%
</TABLE>
- ----------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
28
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
<TABLE>
<CAPTION>
Emerging Markets Portfolio
---------------------------------------------------
Year Ended October 31, Period Ended
----------------------------------- October 31,
1998 1997 1996 1995(1)
------- ------- ------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.05 $ 9.52 $ 9.73 $ 10.00
------- ------- ------- -------
Income from investment operations:
Net investment income 0.02 0.03 0.06 0.16
Net realized and unrealized
gain/(loss) on investment (3.20) 0.09 (0.16) (0.31)
------- ------- ------- -------
Total from investment operations (3.18) 0.12 (0.10) (0.15)
------- ------- ------- -------
Less Distributions from:
Net investment income -- (0.02) (0.08) (0.12)
Net realized capital gains -- (0.57) (0.03) --
------- ------- ------- -------
Total distributions -- (0.59) (0.11) (0.12)
------- ------- ------- -------
Net asset value, end of period $ 5.87 $ 9.05 $ 9.52 $ 9.73
======= ======= ======= =======
Total Return(2) (35.14)% 1.01% (0.96)% (1.96)%
======= ======= ======= =======
Ratios to average net
assets/Supplemental data:
Net assets, end of year (in 000's) $55,789 $95,012 $86,385 $27,297
Ratio of operating expenses to
average net assets 1.85% 1.73% 1.76% 1.81%(3)
Ratio of net investment income to
average net assets 0.26% 0.29% 0.80% 1.87%(3)
Portfolio turnover rate 113% 94% 44% 50%
</TABLE>
- ----------
(1) The Portfolio commenced operations on December 14, 1994.
(2) Total return represents aggregate total return for the period indicated.
(3) Annualized.
See Notes to Financial Statements.
29
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
Global Equity Portfolio
------------------------
For the Period
November 3, 1997(1)
through October 31, 1998
------------------------
Net asset value, beginning of period $ 10.00
-------
Income from investment operations:
Net investment income 0.15
Net realized and unrealized
gain on investment 0.09
-------
Total from investment operations 0.24
-------
Less Distributions from:
Net investment income (0.12)
Net realized capital gains (0.07)
-------
Total distributions (0.19)
-------
Net asset value, end of period $ 10.05
=======
Total Return(2) 2.29%
=======
Ratios to average net assets/Supplemental data:
Net assets, end of period (in 000's) $25,311
Ratio of operating expenses to
average net assets 0.88%(3)
Ratio of net investment income to
average net assets 1.43%(3)
Portfolio turnover rate 48%
- ----------
(1) Commencement of operations.
(2) Total return represents aggregate total return for the period indicated.
(3) Annualized.
See Notes to Financial Statements.
30
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
STATEMENT OF CASH FLOWS
Core Fixed Income Portfolio
For the year ended October 31, 1998
<TABLE>
<CAPTION>
October 31, 1998
----------------
<S> <C>
Net Increase (Decrease) in Cash:
Cash flows from operating activities:
Dividends and interest received $ 22,525,413
Operating expenses paid (320,515)
Interest paid (2,343,048)
----------------
Net cash provided by operating activities 19,861,850
----------------
Cash flows from investing activities:
Purchase of portfolio securities (14,494,178,998)
Proceeds from disposition of portfolio securities 14,505,576,141
----------------
Net cash provided by investing activities 11,397,143
----------------
Net cash provided by operating and investing activities 31,258,993
Cash flows from capital share transactions:
Receipts for shareholder purchases and reinvested distributions 127,576,206
Payments for shareholder redemptions and distributions (158,834,809)
----------------
Net cash used in financing activities (31,258,603)
----------------
Net increase in cash 390
Cash at beginning of year 565
----------------
Cash at end of year $ 955
================
</TABLE>
See Notes to Financial Statements.
31
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Government Cash Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
AGENCY DISCOUNT NOTES(1) -- 31.2%
Federal Home Loan Bank -- 2.1%
$ 3,000,000 5.600% due 11/13/98 $ 2,995,618
3,000,000 5.600% due 12/02/98 2,986,625
3,000,000 5.450% due 02/12/99 2,956,480
------------
8,938,723
------------
Federal Home Loan Mortgage Corporation -- 23.1%
13,000,000 5.600% due 11/02/98 13,000,000
3,000,000 5.600% due 11/03/98 2,999,552
3,000,000 5.600% due 11/05/98 2,998,673
6,000,000 5.600% due 11/06/98 5,996,427
8,000,000 5.600% due 11/09/98 7,991,662
2,000,000 5.600% due 11/12/98 1,997,344
10,000,000 5.600% due 11/20/98 9,976,050
2,000,000 5.600% due 11/25/98 1,993,138
5,000,000 5.600% due 12/02/98 4,977,708
3,000,000 5.450% due 01/07/99 2,971,125
10,000,000 5.450% due 01/15/99 9,901,950
10,000,000 5.450% due 02/02/99 9,880,911
5,000,000 5.450% due 02/12/99 4,933,700
10,000,000 4.670% due 03/09/99 9,838,075
10,000,000 4.690% due 03/18/99 9,825,845
------------
99,282,160
------------
Federal National Mortgage Association -- 6.0%
3,000,000 5.600% due 11/30/98 2,987,517
3,000,000 5.600% due 12/21/98 2,978,195
5,000,000 5.450% due 01/15/99 4,944,911
10,000,000 4.640% due 03/02/99 9,847,667
5,000,000 4.850% due 04/15/99 4,892,033
------------
25,650,323
------------
TOTAL AGENCY DISCOUNT NOTES
(Cost $123,895,156) 133,871,206
------------
</TABLE>
See Notes to Financial Statements.
32
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Government Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
AGENCY NOTES -- 7.6%
Federal Home Loan Mortgage Corporation
$ 2,000,000 5.180% due 11/18/98(1) $ 1,999,604
Federal Farm Credit Bank
3,000,000 5.700% due 12/01/98 2,999,852
Federal National Mortgage Association - Medium Term Notes
5,000,000 5.230% due 11/25/98 4,998,651
3,000,000 5.380% due 02/09/99 2,999,455
1,300,000 5.330% due 02/12/99 1,298,950
1,245,000 5.840% due 03/29/99 1,246,056
3,000,000 5.900% due 07/19/99(1) 3,007,304
Federal Home Loan Bank
3,000,000 5.540% due 04/07/99 2,999,871
3,000,000 5.570% due 04/07/99 2,999,861
1,000,000 6.100% due 04/23/99 1,002,141
Federal National Mortgage Association
4,000,000 5.580% due 01/15/99 4,000,765
3,100,000 8.450% due 07/12/99 3,178,895
------------
TOTAL AGENCY NOTES
(Cost $42,707,455) 32,731,405
------------
REPURCHASE AGREEMENTS(2) -- 61.5%
20,000,000 Agreement with Bear Stearns, Inc., 5.4% dated 09/21/98
to be repurchased at $20,189,000 on 11/23/98,
collateralized by: $15,004,500, Federal National
Mortgage Association #1998-7 F, 6.24% due 11/18/27,
$5,167,551 Federal Home Loan Mortgage Corporation,
#2031FG, 5.94% due 4/15/27, $527, 889 Federal Home
Loan Mortgage Corporation G2SF, 6.50% due 10/20/28 20,000,000
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Government Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
$15,000,000 Agreement with Prudential Securities, Inc., 5.36% dated
09/22/98 to be repurchased at $15,203,233 on 12/22/98,
collateralized by: $15,495,355 Federal Home Loan
Mortgage Corporation #1644 6.35% due 12/15/23 $15,000,000
20,000,000 Agreement with Prudential Securities, Inc., 5.4% dated
09/21/98 to be repurchased at $20,180,000 on 11/20/98,
collateralized by: $20,745,577 Federal Home Loan
Mortgage Corporation #1644 6.35% due 12/15/23 20,000,000
20,000,000 Agreement with Greenwich Capital, Inc., 4.8% dated
10/27/98 to be repurchased at $20,101,333 on 12/04/98,
collateralized by: $20,602,732 Federal National
Mortgage Association #1997-42 FD 7.00% due 1/18/27 20,000,000
25,000,000 Agreement with Greenwich Capital, Inc., 4.8% dated
10/27/98 to be repurchased at $25,136,667 on 12/07/98,
collateralized by: $25,762,158 Federal National
Mortgage Association #1998-49 B 6.50% due 08/18/28 25,000,000
20,000,000 Agreement with Greenwich Capital, Inc., 4.8% dated
10/27/98 to be repurchased at $20,130,667 on 12/15/98,
collateralized by: $20,602,732 Federal National
Mortgage Association #1997-42 FD 7.00% due 1/18/27 20,000,000
25,000,000 Agreement with Greenwich Capital, Inc., 4.8% dated
10/27/98 to be repurchased at $25,286,667 on 01/21/99,
collateralized by: $26,001,806 Federal National
Mortgage Association #1998-49 B 6.5% due 8/18/28 25,000,000
20,000,000 Agreement with Merrill Lynch and Co., 5.23% dated
10/07/98 to be repurchased at $20,084,261 on 11/05/98,
collateralized by: $21,053,299 Federal Home Loan
Mortgage Corporation #1671 N 6.34% due 2/15/24 20,000,000
</TABLE>
See Notes to Financial Statements.
34
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Government Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
$20,000,000 Agreement with Salomon Smith Barney, Inc., 5.22 dated
10/16/98 to be repurchased at $20,089,900 on 11/16/98,
collateralized by: $20,643,366 Federal National
Mortgage Association #1998-44 GB 6.50% due 8/18/28 $ 20,000,000
79,756,869 Agreement with Warburg Dillon Read, Inc., 5.55% dated
10/30/98 to be repurchased at $79,793,757 on 11/02/98,
collateralized by $81,626,084 Federal National
Mortgage Association #323159 7.50% due 4/1/28 79,756,870
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $264,756,870) 264,756,870
------------
TOTAL INVESTMENTS (Cost $431,359,481)(3) 100.3% $431,359,481
LIABILITIES IN EXCESS OF OTHER ASSETS (0.3)% (1,194,396)
----- ------------
NET ASSETS 100.0% $430,165,085
===== ============
NET ASSET VALUE ($430,165,085 divided by 430,129,444
shares outstanding) $ 1.00
============
</TABLE>
- ----------
(1) Rate represents annualized discount yield at date of purchase.
(2) Market value disclosed for collateral on repurchase agreements is at
October 31, 1998. The term repurchase agreements are subject to a seven day
demand feature.
(3) Aggregate cost for federal tax purposes.
See Notes to Financial Statements.
35
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES(1) -- 96.2%
Daily Variable/Floating Rate Notes -- 37.7%
$ 700,000 California Statewide Community Development Authority
Revenue, Certificate Participation, Citrus Valley
Health Partners, Inc., Citrus Valley Medical Center,
Inc., Foothill Hospital, (MBIA Insured), 3.450% due
11/02/98 $ 700,000
4,300,000 California Statewide Community Development Authority
Revenue, Certificate Participation, John Muir/Mt
Diablo Health, (AMBAC Insured), 3.450% due 11/02/98 4,300,000
2,500,000 Cornell Township, MI, Economic Development Corporation,
Environmental Improvement Revenue, Mead Escanaba Paper
Company, (LOC Bank America), 3.600% due 11/02/98 2,500,000
12,000,000 Delaware County, PA, Industrial Development Authority,
Airport Facilities Revenue, United Parcel Service
Project, 3.600% due 11/02/98 12,000,000
2,000,000 Delta County, MI, Economic Development Corporation,
Environmental Improvement Revenue, (LOC Scotiabank),
3.700% due 11/02/98 2,000,000
2,700,000 Forsyth, MT, Pollution Control Revenue, Pacificorp
Project, (LOC Rabobank Nederland), 3.750% due
11/02/98 2,700,000
1,100,000 Grapevine, TX, Industrial Development Corporation,
American Airlines Inc. Project, Series A1, (LOC Morgan
Guaranty Trust), 3.650% due 11/02/98 1,100,000
10,600,000 Hapeville, GA, Development Authority, Industrial
Development Revenue, Hapeville Hotel Limited, (LOC
Deutsche Bank A.G.), 3.700% due 11/02/98 10,600,000
1,500,000 Harris County, TX, Health Facilities Development
Corporation, Special Facilities Revenue, Texas Medical
Center, (MBIA Insured), 3.750% due 11/02/98 1,500,000
</TABLE>
See Notes to Financial Statements.
36
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES -- (Continued)
$ 800,000 Harris County, TX, Health Facilities Development
Corporation, St. Lukes Episcopal Hospital, Series A,
(LOC Morgan Guaranty Trust), 3.650% due 11/02/98 $ 800,000
15,300,000 Irvine Ranch, CA, Water District, Certificate
Participation, Capital Improvement Project, (LOC
Toronto Dominion Bank), 3.500% due 11/02/98 15,300,000
La Crosse, WI, Pollution Control Revenue, Dairyland
Power Cooperative B, (AMBAC Insured)
7,300,000 3.700% due 11/02/98 Series B 7,300,000
1,400,000 3.700% due 11/02/98 Series A 1,400,000
Lincoln County, WY, Pollution Control Revenue, Exxon
Project,
1,800,000 3.700% due 11/02/98 Series D 1,800,000
1,400,000 3.700% due 11/02/98 Series C 1,400,000
6,400,000 3.700% due 11/02/98 Series B 6,000,000
13,300,000 Long Island Power Authority, NY, Electrical Systems
Revenue, (LOC ABN Amro Bank and LOC Morgan Guaranty
Trust), 3.600% due 11/02/98 13,300,000
7,300,000 Louisiana Public Facilities Authority Revenue, College
and University Equipment and Capital, Series A, (LOC
Deutsche Bank), 3.700% due 11/02/98 7,300,000
1,000,000 Metropolitan Nashville Airport Authority, Special
Facilities Revenue, American Airlines Inc.
Project,Series B (LOC Bayerische Landesbank), 3.650%
due 11/02/98 1,000,000
1,200,000 Missouri State Development Financial Board,
Infrastructure Facilities Revenue, Science City Union
Station, Series B, (LOC Canadian Imperial Bank),
3.750% due 11/02/98 1,200,000
1,100,000 New York, NY, General Obligation Unlimited, Series C,
(LOC Morgan Guaranty Trust), 3.550% due 11/02/98 1,100,000
3,800,000 New York, NY, General Obligation Unlimited, Series B,
Subseries B-4, (MBIA Insured), 3.700% due 11/02/98 3,800,000
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES -- (Continued)
New York, NY, City Municipal Water Financial Authority,
Water and Sewer Systems Revenue, (FGIC Insured)
$ 6,400,000 3.700% due 11/02/98 Series C $ 6,400,000
4,000,000 3.700% due 11/02/98 Series B-49 4,000,000
New York State Energy Research and Development
Authority, Pollution Control Revenue, New York State
Electric & Gas-D,
6,635,000 3.500% due 11/02/98 (LOC Morgan Guaranty Trust) 6,635,000
3,400,000 3.600% due 11/02/98 (LOC 1st National Bank Chicago) 3,400,000
8,600,000 Orange County, CA, Water District Certificate
Participation, Project B, (LOC National Westminster
Pl), 3.450% due 11/02/98 8,600,000
2,700,000 Peninsula Port Authority, Virginia Coal Terminal
Revenue, Dominion Terminal Associates Project C,
(LOC National Westminster Pl), 3.650% due 11/02/98 2,700,000
5,300,000 Reno, NV, Hospital Revenue, St Mary's Regional Medical
Center, Series B, (MBIA Insured) 3.650% due 11/02/98 5,300,000
2,300,000 Scottsdale, AZ, Industrial Development Authority,
Hospital Revenue, Scottsdale Memorial Health Systems,
Series B, (AMBAC Insured), 3.050% due 11/02/98 2,300,000
3,300,000 Sullivan County, TN, Industrial Development Board,
Pollution Control Revenue, Mead Corporation, (LOC
Union Bank of Switzerland), 3.600% due 11/02/98 3,300,000
------------
Total Daily Variable/Floating Rate Notes
(Cost $141,735,000) 141,735,000
------------
</TABLE>
See Notes to Financial Statements.
38
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES -- (Continued)
Weekly Variable/Floating Rate Notes -- 58.5%
$ 1,100,000 Alabama Special Care Facilities, Finance Authority,
Montgomery Hospital Revenue, (FGIC Insured), 3.150%
due 11/04/98 $ 1,100,000
8,200,000 Burke County, GA, Development Authority Pollution
Control Revenue, Oglethorpe Power Corp. Project,
Series A, (FGIC Insured), 3.050% due 11/04/98 8,200,000
800,000 California Health Facilities, Financing Authority
Revenue, Childrens Hospital Project, (MBIA Insured),
2.500% due 11/05/98 800,000
3,905,000 Charlotte, NC, Airport Revenue, Series A, (MBIA
Insured), 3.050% due 11/04/98 3,905,000
Chicago, IL, O'Hare International Airport Revenue,
General Airport 2nd Lien - B, (LOC Societe Generale),
1,080,000 3.150% due 11/04/98 1,080,000
1,000,000 3.150% due 11/04/98 1,000,000
Clayton County, GA, Housing Authority, Multi-Family
Housing Revenue, Huntington Woods Series A, (LOC
Barclays Bank PLC),
1,000,000 3.150% due 11/04/98 1,000,000
1,100,000 3.150% due 11/04/98 1,100,000
1,355,000 3.150% due 11/04/98 1,355,000
Colorado Student Obligation Board Authority, Student
Loan Revenue, Series C-2, (LOC Student Loan Marketing
Association),
650,000 3.050% due 11/04/98 650,000
900,000 3.050% due 11/04/98 900,000
1,700,000 Colton, CA, Redevelopment Agency, Multi-Family Revenue,
Issue A, (LOC Federal Home Loan Bank), 2.800% due
11/03/98 1,700,000
15,100,000 Connecticut State Health and Education Facilities
Authority Revenue, Yale University, 2.700% due
11/05/98 15,100,000
1,200,000 Dade County, FL, Aviation Revenue, Series A, (LOC Morgan
Guaranty Trust, 3.150% due 11/04/98 1,200,000
</TABLE>
See Notes to Financial Statements.
39
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES -- (Continued)
$ 2,600,000 Dauphin County, PA, General Authority Revenue, School
District Pooled Financing Program I, (AMBAC Insured),
3.750% due 11/04/981 $2,600,000
1,900,000 Durham, NC, General Obligation Unlimited, Public
Improvement, (SPA Wachovia Bank of NC), 3.050% due
11/04/98 1,900,000
5,000,000 Emmaus, PA,General Authority Revenue, (SPA Credit
Suisse), 3.100% due 11/05/98 5,000,000
600,000 Fairfax County, VA, Industrial Development Authority
Revenue, Fairfax Hospital System - C, (LOC Credit
Suisse), 3.100% due 11/04/98 600,000
2,000,000 Gloucester County, NJ, Industrial Pollution Control,
Financing Authority Revenue, Mobil Oil Refining
Company Project, 2.850% due 11/04/98 2,000,000
5,000,000 Golden Empire, CA, School Financing Authority, Kern High
School District Projects, 2.400% due 11/04/98 5,000,000
2,900,000 Hamilton County, OH, Hospital Facilities Revenue, Health
Alliance of Greater Cincinnati, Series E, (MBIA
Insured), 3.100% due 11/04/981 2,900,000
1,400,000 Hampton Roads, VA, Regional Jail Authority, Regional
Jail Facility Revenue, (LOC Wachovia Bank of NC),
3.400% due 11/04/98 1,400,000
2,000,000 Illinois Health Facilities Authority Revenue, Decatur
Memorial Hospital, Project - A, (MBIA Insured) 3.200%
due 11/04/98 2,000,000
Illinois Health Facilities Authority Revenue, Swedish
Covenant Hospital Project,
2,700,000 3.200% due 11/04/98 (MBIA Insured) 2,700,000
700,000 3.200% due 11/04/98 (AMBAC Insured) 700,000
6,000,000 Illinois Housing Development Authority, Housing Revenue,
Illinois Center Apartments, (MET Life Guaranty and
SPA-KBC Bank), 3.250% due 11/04/98 6,000,000
1,100,000 Indianapolis, IN, Industrial Multi-Family Revenue, Canal
Square Project, (LOC Societe Generale), 3.150% due
11/04/98 1,100,000
</TABLE>
See Notes to Financial Statements.
40
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES -- (Continued)
$ 2,100,000 Iowa Higher Education Loan Authority, Private College
Revenue, (MBIA Insured), 3.300% due 11/04/98 $ 2,100,000
1,000,000 Knox County, TN, Industrial Development Board,
Industrial Revenue, Professional Plaza LTD Project,
(FGIC Insured), 3.700% due 11/04/98 1,000,000
2,700,000 Los Angeles County, CA, Pension Obligation, Series C,
(AMBAC Insured), 2.900% due 11/04/98 2,700,000
3,215,000 Los Angeles, CA, Multifamily Revenue, Series K (LOC
FHLB) 2.400% due 11/03/98 3,215,000
3,315,000 Louisiana Public Facilities Authority Revenue, College
and University Equipment and Capital, Series A, (FGIC
Insured), 3.150% due 11/04/98 3,315,000
4,200,000 Louisiana Public Facilities Authority Revenue,
Multi-Family Mortgage, (General Electric Capital
Guaranty Insured), 3.000% due 11/04/98 4,200,000
3,265,000 Maine State Health & Higher Educational Facilities
Authority Revenue, VHA New England Project, Series G,
(AMBAC Insured), 3.300% due 11/04/98 3,265,000
1,100,000 Massachusetts Health & Educational Facilities Authority
Revenue, Capital Asset Project, Series G-1, (MBIA
Insured), 2.800% due 11/04/98 1,100,000
8,800,000 Massachusetts State Health & Educational Facilities
Authority Revenue, Amherst College, Series F, 2.950%
due 11/05/98 8,800,000
1,000,000 Metropolitan Government, Nashville & Davidson County,
TN, Health & Education Board Revenue, Series A, (FGIC
Insured), 3.150% due 11/04/98 1,000,000
1,300,000 Michigan State Strategic Fund Industrial Development
Revenue, Allen Group Project, (LOC Dresdner Bank,
A.G.), 3.000% due 11/04/98 1,300,000
</TABLE>
See Notes to Financial Statements.
41
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES -- (Continued)
$ 5,000,000 Moffat County, CO, Pollution Control Revenue, Fixed
Colorado United Electric, (AMBAC Insured), 3.200% due
11/04/98 $ 5,000,000
5,500,000 Montgomery County, MD, Housing Opportunity Commission
Housing Revenue, Multi-Family, Falklands, Series B,
(CG Life) 3.200% due 11/04/98 5,500,000
1,500,000 Mountain View, CA, Multi-Family Housing Revenue,
Mariposa, A, (FGIC Insured), 2.500% due 11/05/98 1,500,000
1,300,000 Municipal Electric Authority, GA, (LOC ABN Amro Bank),
3.000% due 11/04/98 1,300,000
1,945,000 Nebraska Financial Authority, Hospital Revenue, Assets,
Series A, (FGIC Insured), 3.150% due 11/04/98 1,945,000
600,000 New Hampshire Higher Educational & Health Facilities
Authority Revenue, VHA New England Inc. Project,
Series C, (AMBAC Insured), 3.300% due 11/04/98 600,000
500,000 New Hampshire Higher Educational & Health Facilities
Authority Revenue, VHA New England Inc. Project,
Series E, (AMBAC Insured), 3.300% due 11/04/98 500,000
1,200,000 New Jersey Economic Development Authority, Pollution
Control Revenue, Public Services Electric and Gas
Company, Series A, (MIBA Insured), 2.850% due 11/04/98 1,200,000
3,000,000 New Jersey Economic Development Authority, Water
Facilities Revenue, United Water New Jersey Inc.,
Project B, (AMBAC Insured), 3.200% due 11/04/98 3,000,000
4,200,000 New Jersey State Turnpike Authority, Series D, (FGIC
Insured), 2.850% due 11/04/98 4,200,000
1,300,000 New York State Medical Care Facilities Finance Agency
Revenue, Lenox Hill Hospital, Series A, (LOC Chase
Manhattan Bank), 3.050% due 11/04/98 1,300,000
</TABLE>
See Notes to Financial Statements.
42
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES -- (Continued)
$10,000,000 Niagara County, NY, Industrial Development Agency, Solid
Waste Disposal Revenue, American Refinery-Fuel
Company, Series A, (LOC Wachovia Bank of NC), 3.000%
due 11/04/98 $ 10,000,000
1,300,000 Ohio State University, General Receipts 3.000% due
11/05/98 1,300,000
7,100,000 Port Kalama,WA, Public Corporation Port, Conagra
Incorporated Project, (LOC Morgan Guaranty Trust),
3.100% due 11/04/98 7,100,000
219,500 Puerto Rico Commonwealth Highway & Transportation
Authority Revenue, Series X, (LOC Union Bank of
Switzerland), 2.750% due 11/04/98 219,500
400,000 Rapides Parish, LA, Industrial Development Board,
Pollution Control Revenue, Central Louisiana Electric
Company Project, (LOC West Deutsche Landes Bk), 2.950%
due 11/04/981 400,000
1,100,000 Saint Charles, IL, Industrial Development Revenue, Pier
1 Imports, Midwest Project, (LOC Bank One Texas NA),
3.300% due 11/04/98 1,100,000
1,200,000 Savannah, GA, Port Authority, Pier 1 Imports, Southeast,
(LOC Bank One Texas NA), 3.300% due 11/04/981 1,200,000
1,100,000 Seattle, WA, Municipal Light and Power Revenue, (SPA
Morgan Guaranty Trust) 3.150% due 11/04/98 1,100,000
3,300,000 Simi Valley, CA, Community Development Agency,
Multi-Family, Series 1985, Issue A, (LOC Chase
Manhattan Bank), 2.700% due 11/04/98 3,300,000
2,700,000 Texas Higher Education Authority Incorporated, Series B,
(FGIC Insured), 3.150% due 11/04/98 2,700,000
4,200,000 Tulsa, OK, Tulsa Industrial Authority Revenue,
University of Tulsa, Series B, (MBIA Insured), 3.150%
due 11/04/98 4,200,000
</TABLE>
See Notes to Financial Statements.
43
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
VARIABLE/FLOATING RATES NOTES -- (Continued)
$14,730,000 University of Alabama, University Revenues, University
of Alabama in Birmingham, Series A, (SPA Bank of
America) 3.000% due 11/04/98 $ 14,730,000
700,000 University of Utah, University Revenues, Auxiliary and
Campus Facilities, Series A, (SPA Bank of Nova Scotia)
3.000% due 11/04/98 700,000
5,000,000 Utah State Board of Regents, Student Loan Revenue,
Series B, (AMBAC Insured), 3.000% due 11/04/98 5,000,000
6,000,000 Valdez, AK, Marine Terminal Revenue, Mobile Alaska
Pipeline Project, Series A, 3.150% due 11/04/98 6,000,000
Vermont Educational & Health Buildings Financing Agency,
VHA New England Project, Series F, (AMBAC Insured),
300,000 3.300% due 11/04/98 300,000
2,700,000 3.300% due 11/04/98 2,700,000
2,600,000 3.300% due 11/04/98 2,600,000
7,200,000 Wake County, NC, Industrial Facilities & Pollution
Control Financing Authority, Carolina Power & Light
Co. Project, Series A, (LOC Wachovia Bank of NC),
3.150% due 11/04/98 7,200,000
3,900,000 Washington State General Obligation Revenue, Series VR
96, (SPA Landes Bank Hessen) 3.080% due 11/04/98 3,900,000
6,075,000 Washington State Housing Finance, Multi-Family Mortgage
Revenue, Pacific First Federal Project,Series A, (LOC
Pacific First Federal Savings), 3.100% due 11/04/98 6,075,000
3,500,000 Wisconsin State Health Facilities Authority Revenue,
Hospital Sisters Obligation Project, Series G,
(MBIA Insured), 3.200% due 11/04/98 3,500,000
3,400,000 York County, PA, Industrial Development Authority,
Pollution Control Revenue, Public Service Electric &
Gas Project, Series A, (MBIA Insured) 3.000% due
11/04/98 3,400,000
------------
</TABLE>
See Notes to Financial Statements.
44
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face Market
Amount Value
- ----------- ------------
<S> <C>
Total Daily Variable/Floating Rate Notes
(Cost $219,754,500) $219,754,500
------------
TOTAL VARIABLE/FLOATING RATES NOTES
(Cost $361,489,500) 361,489,500
------------
PUT OPTION BONDS(2) -- 0.5%
$ 2,000,000 Massachusetts Bay Transportation Authority, General
Transportation System, Series 1984, Issue A, (LOC
State Street Bank & Trust), 3.750% due 03/01/99 2,000,000
2,960,000 York County, SC, Pollution Control Revenue, 3.500% due
03/15/99 2,957,865
------------
TOTAL PUT OPTION BONDS
(Cost $4,957,865)01 4,957,865
------------
FIXED RATE BONDS -- 3.2%
1,850,000 Arlington, TX, General Obligation Unlimited, Independent
School District, Series D, 8.000% due 08/15/991 1,915,144
1,990,000 Cook County, IL, Community Consolidated School District
#146, Tinley Park, 4.200% due 12/01/98 1,991,173
500,000 New Jersey Building Authority, State Building Revenue,
9.870% due 02/01/99 507,537
1,630,000 New York, NY, City Municipal Water Financial Authority,
Water and Sewer Systems Revenue, 6.750% due 06/15/99 1,685,267
1,000,000 Philadelphia, PA, School District, Tax and Revenue
Anticipation Notes, Series A, 4.250% due 06/30/99 1,003,884
1,000,000 Philadelphia, PA, Tax and Revenue Anticipation Notes,
Series A, 4.250% due 06/30/99 1,003,934
1,000,000 University of Cincinnati, OH, General Receipts, Series
I1, 7.100% due 06/01/99 1,039,597
------------
TOTAL FIXED RATE BONDS
(Cost $9,146,536) 9,146,536
------------
</TABLE>
See Notes to Financial Statements.
45
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax-Exempt Cash Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
<TABLE>
<CAPTION>
Face
Amount Value
- ----------- ------------
<S> <C>
TOTAL INVESTMENTS (Cost $375,594,514)(3) 99.9% $375,594,514
OTHER ASSETS IN EXCESS OF LIABILITIES 0.1 329,909
----- ------------
NET ASSETS 100.0% $375,924,423
===== ============
NET ASSET VALUE ($375,924,423 divided by
376,006,324 shares outstanding) $ 1.00
============
</TABLE>
- ----------
(1) Dates shown are coupon reset dates. Rates shown are the most recent rates
as of October 31, 1998.
(2) Dates shown are put Dates
(3) Aggregate cost for federal tax purposes
ABBREVIATIONS:
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Corporation
FSA -- Financial Security Assurance Inc.
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance
VHA -- Veteran's Housing Administration
See Notes to Financial Statements.
46
<PAGE>
THE GLENMEDE FUND, INC.
Core Fixed Income Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Face
Amount Value
- ------ -----
Mortgage-Backed Securities(1) -- 36.6%
Countrywide Securities Corp. -- 1.1%
$ 2,793,699 Countrywide 1998-6 A
6.500% due 6/25/13 $ 2,813,779
-----------
Federal Home Loan Mortgage Corporation -- 4.0%
254,835 #555359 6.500% due 4/1/08 254,634
2,486,135 #G10753 6.500% due 9/1/09 2,525,715
306,231 #555360 7.000% due 7/1/12 313,125
1,001,370 #D86858 7.500% due 2/1/28 1,031,568
952,690 #D88567 7.500% due 4/1/28 981,420
1,577,516 #D84894 8.000% due 12/1/27 1,627,303
1,803,041 #D78677 8.000% due 3/1/27 1,860,513
1,418,962 #555354 8.500% due 10/1/18 1,484,873
337,525 #G00807 9.500% due 3/1/21 364,868
------------
10,444,019
------------
Federal National Mortgage Association -- 31.5%
3,257,798 #313816 6.000% due 11/25/27 3,273,045
3,783,327 #380159 6.210% due 5/1/08 3,867,270
1,729,157 #44174 6.500% due 11/1/03 1,755,614
2,055,561 #313815 6.500% due 11/25/27 2,086,539
7,443,361 #73829 6.560% due 12/1/03 7,764,356
5,700,000 #73924 6.580% due 2/1/07 5,965,406
6,498,374 #73927 6.620% due 1/1/04 6,794,863
4,509,966 #73828 6.810% due 12/1/06 4,769,290
3,449,207 #73954 6.850% due 2/1/07 3,672,328
3,445,851 #73905 6.910% due 1/1/07 3,674,139
4,376,700 #73917 6.950% due 1/1/07 4,661,186
1,259,866 #313672 7.030% due 6/1/07 1,347,270
2,049,445 #409459 7.500% due 1/1/28 2,111,249
5,980,930 #393877 7.500% due 7/1/27 6,161,293
1,453,867 #395680 7.500% due 8/1/27 1,497,711
1,465,442 #398674 7.500% due 9/1/27 1,509,635
1,735,428 #405845 8.000% due 11/1/27 1,795,084
423,544 #313804 8.000% due 11/25/27 442,604
See Notes to Financial Statements
47
<PAGE>
THE GLENMEDE FUND, INC.
Core Fixed Income Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- ------ -----
Mortgage-Backed Securities -- (Continued)
Federal National Mortgage Association -- (Continued)
$ 1,980,196 #373328 8.000% due 3/1/27 $ 2,048,266
4,817,547 #390895 8.000% due 6/1/27 4,983,150
1,613,626 #395715 8.000% due 8/1/27 1,669,095
7,466,055 #397602 8.000% due 8/1/27 7,722,702
584,355 #313798 9.000% due 11/25/27 618,868
849,894 #313795 9.500% due 11/25/27 915,761
448,362 #313796 9.500% due 11/25/27 483,348
------------
81,590,072
------------
Total Mortgage-Backed Securities
(Cost $92,137,477) 94,847,870
------------
Collateralized Mortgage Obligations -- 18.8%
13,161,000 FNR #1992-47 H 5.000% due 2/25/07 13,014,995
7,500,000 FHR #1590 H 6.500% due 11/15/22 7,696,875
17,680,000 FNR #1994-36 J 6.500% due 6/25/23 18,243,462
9,597,608 FHR #1585 K 6.500% due 9/15/23 9,777,563
------------
Total Collateralized Mortgage Obligations
(Cost $45,752,959) 48,732,895
------------
Asset-Backed Securities -- 12.2%
18,000,000 #1997-1 A3 California Infrastructure SCE
Funding Corp. 6.170% due 3/25/03 18,292,500
4,000,000 #1997-1 A4 California Infrastructure SCE
Funding Corp. 6.220% due 3/25/04 4,090,000
4,000,000 #1997-1 California Infrastructure Pacific
Gas & Electric 6.320% due 9/25/05 4,097,500
5,000,000 #1997-1 A7 EQCC 7.120% due 5/15/28 5,162,500
------------
Total Asset-Backed Securities
(Cost $31,087,743) 31,642,500
------------
See Notes to Financial Statements
48
<PAGE>
THE GLENMEDE FUND, INC.
Core Fixed Income Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- ------ -----
Interest-Only Securities(2) -- 1.6%
$26,040,643 UAC #97-B I 1.850% due 4/10/01 $ 374,334
1,458,910 FHR #1697 PV 6.000% due 4/15/06 92,094
3,846,153 FNR #93-135 PI 6.500% due 7/25/08 760,817
7,900,000 FHR #1611 L 7.000% due 11/15/23 1,947,844
1,618,314 FNR #93-147 K 7.000% due 2/25/20 129,465
1,290,000 FHR #1529 JB 7.000% due 3/15/06 206,400
2,541,481 FHG #16 PQ 7.000% due 4/25/21 275,592
2,592,936 FNR #1997-40 PK 7.000% due 7/18/19 199,332
2,458,657 FNR #93-167 L 7.000% due 8/25/19 178,253
-----------
Total Interest-Only Securities
(Cost $5,941,802) 4,164,131
-----------
Corporate Notes -- 4.7%
5,000,000 CIT Group Holdings, Inc.
5.500% due 10/15/01 4,979,900
1,125,000 Associates Corp. of North America
6.000% due 4/15/03 1,148,130
Merrill Lynch and Co.
1,125,000 6.250% due 1/15/06 1,130,996
5,000,000 6.370% due 10/15/08 5,022,750
-----------
Total Corporate Notes
(Cost $12,239,339) 12,281,776
-----------
U.S. Treasury Obligations -- 23.0%
U.S. Treasury Notes
8,050,000(3) 5.625% due 5/15/01 8,321,688
34,600,000(3) 5.625% due 5/15/08 37,297,762
12,500,000(3) 6.125% due 11/15/27 14,066,375
-----------
Total U.S. Treasury Obligations
(Cost $55,914,638) 59,685,825
-----------
See Notes to Financial Statements
49
<PAGE>
THE GLENMEDE FUND, INC.
Core Fixed Income Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- ------ ---------
Repurchase Agreements -- 25.2%
$ 151,000
Agreement with Goldman Sachs & Co., 5.10%, dated
10/30/98, to be repurchased at $151,064 on
11/2/98, collateralized by: $158,140 U.S. Treasury
Bonds, 13.375% due 8/15/01 $ 151,000
65,000,000
Agreement with Union Bank of Switzerland, 5.55%,
dated 10/30/98, to be repurchased at $65,030,063
on 11/2/98, collateralized by: $43,033,693 Federal
National Mortgage Association FNCI, 7.00% due
2/1/12, $23,262,013 Federal National Mortgage 65,000,000
------------
Total Repurchase Agreements
(Cost $65,151,000) 65,151,000
------------
Total Investments (Cost $308,224,849)(4) 122.1% $316,505,997
Reverse Repurchase Agreements -- (23.2%)
32,449,000 Agreement with Merrill Lynch and Co., dated 10/30/98
bearing 2.25% to be repurchased at $32,455,084 on
11/2/98, collateralized by: $31,907,912 U.S.
Treasury Notes, 5.625% due 5/15/08 (32,449,000)
3,229,188 Agreement with Merrill Lynch and Co., dated 10/30/98
bearing 5.40% to be repurchased at $3,230,641 on
11/2/98, collateralized by: $3,152,938 U.S.
Treasury Notes, 5.625% due 5/15/01 (3,229,188)
14,078,125 Agreement with Merrill Lynch and Co., dated 10/30/98
bearing 5.40% to be repurchased at $14,084,460 on
11/2/98, collateralized by: $14,066,375 U.S.
Treasury Notes, 6.125% due 11/15/27 (14,078,125)
5,181,250 Agreement with Salomon Smith Barney, dated 10/30/98
bearing 5.42% to be repurchased at $5,183,590 on
11/2/98, collateralized by: $5,168,750 U.S.
Treasury Notes, 5.625% due 5/15/01 (5,181,250)
5,300,000 Agreement with Salomon Smith Barney, dated 10/30/98
bearing 2.00% to be repurchased at $5,300,883 on
11/2/98, collateralized by: $5,389,850 U.S.
Treasury Notes, 5.625% due 5/15/08 (5,300,000)
------------
See Notes to Financial Statements
50
<PAGE>
THE GLENMEDE FUND, INC.
Core Fixed Income Portfolio
STATEMENT OF NET ASSETS -- (Concluded)
October 31, 1998
Value
-----
TOTAL REVERSE REPURCHASE AGREEMENTS (23.2)% $ (60,237,563)
OTHER ASSETS IN EXCESS OF LIABILITIES 1.1% 2,717,750
----- -------------
NET ASSETS 100.0% $ 258,986,184
----- -------------
----- -------------
Net Asset Value ($258,986,184 divided by 24,198,111
shares outstanding) $ 10.70
-------------
-------------
(1) Represents current face amount at October 31,1998.
(2) Face amount represents notional amount.
(3) Collateral for reverse repurchase agreements.
(4) Aggregate cost for federal tax purposes.
See Notes to Financial Statements
51
<PAGE>
THE GLENMEDE FUND, INC.
Tax Managed Equity Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Shares Value
- ------ -----
Common Stocks -- 95.3%
Technology -- 15.7%
25,000 Cisco Systems, Inc.(1) $ 1,575,000
110,000 Compaq Computer Corp. 3,478,750
30,001 Computer Associates International, Inc. 1,181,289
140,000 EMC Corp.(1) 9,012,500
60,000 Lexmark International Group, Inc.,
Class A(1) 4,196,250
400 Siebl Systems, Inc.(1) 8,175
100,000 Sterling Software, Inc.(1) 2,618,750
20,000 Xerox Corp. 1,937,500
------------
24,008,214
------------
Financial Services -- 15.4%
35,000 Allstate Corp. 1,507,187
100,000 A.G. Edwards & Sons, Inc. 3,456,250
35,000 American International Group, Inc. 2,983,750
23,104 Associates First Capital Corp. 1,628,832
60,000 BankAmerica Corporation 3,446,250
56,000 Duke Realty Investments Inc. 1,337,000
47,000 Fannie Mae 3,328,188
90,000 First Union Corp. 5,220,000
14,300 Hartford Life, Inc., Class A 661,375
------------
23,568,832
------------
Consumer Cyclicals -- 15.1%
120,000 Carnival Corp., Class A 3,885,000
50,000 Ford Motor 2,712,500
110,000 Harley-Davidson, Inc. 4,262,500
80,000 McGraw-Hill, Inc. 7,195,000
120,000 VF Corp. 5,017,500
------------
23,072,500
------------
Consumer Staples -- 14.6%
28,000 Bristol-Myers Squibb Co. 3,095,750
100,000 H & R Block, Inc. 4,481,250
40,000 Johnson & Johnson 3,260,000
See Notes to Financial Statements
52
<PAGE>
THE GLENMEDE FUND, INC.
Tax Managed Equity Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Shares Value
- ------ -----
Common Stocks -- (Continued)
Consumer Staples -- (Continued)
38,900 Loews Corporation $ 3,654,169
50,000 Office Depot, Inc.(1) 1,250,000
37,000 Procter & Gamble Co. 3,288,375
90,000 Service Corp. International 3,206,250
------------
22,235,794
------------
Utilities -- 13.5%
40,000 BellSouth Corp. 3,192,500
75,000 Columbia Energy Group 4,340,625
65,000 FPL Group, Inc. 4,066,563
60,000 MCI Worldcom, Inc.(1) 3,315,000
50,000 Pinnacle West Capital Corporation 2,190,625
45,000 Sprint Corp. 3,453,750
------------
20,559,063
------------
Basic Industry -- 11.0%
120,000 Burlington Northern Sante Fe Corp. 3,705,000
35,000 General Electric Co. 3,062,500
66,000 Johnson Controls, Inc. 3,712,500
125,000 Leggett & Platt, Inc. 2,921,875
55,000 Magna International 3,413,437
------------
16,624,782
------------
Energy -- 10.0%
40,000 Chevron Corp. 3,260,000
65,000 Phillips Petroleum Co. 2,811,250
45,000 Texaco Inc. 2,669,063
60,000 Schlumberger Ltd. 3,150,000
100,000 USX Marathon Group 3,268,750
------------
15,159,063
------------
Total Common Stocks
(Cost $99,622,544) 145,418,778
------------
53
<PAGE>
Repurchase Agreement -- 3.8%
$ 5,815,000 Agreement with Goldman Sachs &
Co., 5.10%, dated 10/30/98 to be
repurchased at $5,817,471 on
11/02/98, collateralized by
$5,939,780 U. S. Treasury Bonds,
8.75%, due 05/15/20 (Cost
$5,815,000) $ 5,815,000
------------
Total Investments (Cost $105,437,545)(2) 99.1% $151,233,778
OTHER ASSETS IN EXCESS OF Liabilities 0.9% 1,366,860
------ ------------
Net Assets 100.0% $152,600,638
===== ============
Net Asset Value ($152,600,638
divided by 7,376,076 shares
outstanding) $ 20.69
============
- --------------------
(1) Non-income producing security.
(2) Aggregate cost for federal tax purposes was $105,437,416.
See Notes to Financial Statements
54
<PAGE>
THE GLENMEDE FUND, INC.
Small Capitalization Equity Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Shares Value
- ------ -----
Common Stocks -- 98.6%
Basic Industry -- 17.9%
27,300 Aeroquip-Vickers, Inc. $ 859,950
51,200 Alaska Air Group, Inc. 1,840,000
145,500 Aptargroup, Inc. 3,892,125
63,500 Borg-Warner Automotive, Inc. 2,976,562
122,500 Caraustar Industries, Inc. 2,909,375
92,600 Carlisle Companies, Inc. 3,576,675
70,700 Carpenter Technology Corp. 2,478,919
339,400 CellStar Corp. 2,333,375
90,000 Cincinnati Milacron, Inc. 1,743,750
43,900 Cleveland-Cliffs, Inc. 1,742,281
110,900 Dexter Corp. 3,243,825
131,200 Granite Construction, Inc. 4,370,600
187,900 Intermet Corp. 3,053,375
119,700 Kaydon Corp. 4,204,462
113,400 Lincoln Electric Holdings 2,487,712
89,250 Midwest Express Holdings, Inc. 2,822,531
68,600 Moog, Inc., Class A 2,105,162
105,900 Regal-Beloit Corp. 2,230,519
40,400 Standex International Corporation(1) 997,375
130,500 Teekay Shipping Corp. 2,283,750
60,000 Texas Industries, Inc.(1) 1,773,750
137,700 Titan International, Inc. 1,428,637
75,900 Watsco, Inc. 1,285,556
117,900 Watts Industries, Inc., Class A 2,166,412
137,000 Wyman-Gordon Corp.(1) 1,969,375
----------
60,776,053
----------
Consumer Services -- 25.8%
132,900 Applebee's International, Inc. 2,707,837
161,400 Banta Corp. 4,014,825
106,100 BJ's Wholesale Club, Inc.(1) 3,812,969
284,300 Bob Evans Farms, Inc. 5,597,156
101,700 Canandaigua Wine Company, Inc. Class A(1) 5,097,712
376,200 Fingerhut Companies, Inc. 3,174,187
See Notes to Financial Statements
55
<PAGE>
THE GLENMEDE FUND, INC.
Small Capitalization Equity Portfolio -- (Continued)
STATEMENT OF NET ASSETS
October 31, 1998
Common Stocks -- (Continued)
Consumer Services -- (Continued)
172,700 First Brands Corp. $ 6,519,425
71,000 Foodmaker(1) 1,122,687
138,200 Fred's, Inc. 1,805,237
165,950 Harman International Industries, Inc. 6,710,603
115,800 Haverty Furniture Company, Inc. 2,185,725
252,800 Homebase, Inc. 1,706,400
175,000 K2, Inc. 1,925,000
120,500 Kellwood Co. 3,283,625
124,000 Kimball International, Inc., Class B 2,297,875
147,600 La-Z-Boy Chair Co. 2,712,150
74,200 Libbey, Inc. 2,300,200
144,976 Midway Games, Inc.(1) 1,422,577
66,400 Movado Group, Inc. 1,253,300
43,000 Nautica Enterprises 889,563
153,500 Pittston Services Group 4,566,625
121,100 Polaris Industries, Inc. 4,162,812
141,100 Sbarro, Inc. 3,315,850
61,200 Shopko Stores, Inc.(1) 1,916,325
90,500 SOS Staffing Services, Inc.(1) 763,594
98,500 Stride Rite Corp. 898,813
82,300 Suburban Lodges Of America, Inc. 653,256
90,100 Tarrant Apparel Group, Inc. 1,700,637
125,700 Toll Brothers, Inc. 2,914,669
67,500 Toro Co. 1,493,437
124,500 Universal Corp. 4,622,062
------------
87,547,133
------------
Energy -- 2.3%
54,600 Atwood Oceanics, Inc. 1,535,625
88,700 Cliffs Drilling Co. 2,029,012
272,500 Tesoro Petroleum Corp.(1) 4,036,406
------------
7,601,043
------------
See Notes to Financial Statements
56
<PAGE>
THE GLENMEDE FUND, INC.
Small Capitalization Equity Portfolio -- (Continued)
STATEMENT OF NET ASSETS
October 31, 1998
Common Stocks -- (Continued)
Financial Services -- 18.8%
47,400 American Heritage Life Investment Corp. $ 986,513
178,600 Amerin Corporation 3,817,575
60,000 Bank of Commerce/San Diego 746,250
77,200 Capital Re Corp. 1,413,725
66,300 Chartwell Re Corp. 1,649,213
156,200 Enhance Financial Services Group, Inc. 3,836,663
88,800 First Hawaiian, Inc. 3,540,900
17,300 Greater Bay Bancorp 553,600
126,200 Harleysville Group, Inc. 2,697,525
201,938 Hubco, Inc. 5,452,326
68,500 Landamerica Financial Group, Inc. 3,557,719
126,500 Leasing Solutions, Inc.(1) 1,288,719
75,088 Liberty Corp. 3,116,152
197,900 Long Beach Financial Corp. 1,422,406
88,531 Metris Companies Inc. 2,910,465
150,000 Orion Capital Corp. 5,128,125
111,700 Presidential Life Corp. 2,024,563
126,600 Protective Life Corp. 4,692,113
350,900 Reliance Group Holdings 4,890,669
102,900 Resource Bancshares Mortgage Group, Inc. 1,517,775
136,000 Selective Insurance Group, Inc. 2,490,500
229,940 Washington Federal, Inc. 6,136,524
------------
63,870,020
------------
Healthcare -- 6.1%
141,200 Conmed Corp.(1) 3,741,800
85,000 Genesis Health 1,147,500
139,600 Hologic, Inc. 1,910,775
192,900 Integrated Health Services, Inc. 3,122,569
66,700 Maxxim Medical Inc.(1) 1,684,175
240,150 Sierra Health Services(1) 5,598,497
259,100 Sun Healthcare Group, Inc.(1) 1,522,213
107,300 Wesley Jessen VisionCare, Inc. 1,917,987
------------
20,645,516
------------
See Notes to Financial Statements
57
<PAGE>
THE GLENMEDE FUND, INC.
Small Capitalization Equity Portfolio -- (Continued)
STATEMENT OF NET ASSETS
October 31, 1998
Common Stocks -- (Continued)
Real Estate -- 11.9%
81,600 Amli Residential Properties $ 1,836,000
66,500 Apartment Investment & Management Co. 2,323,344
13,100 Apartment Investment &
Management Co., Class E Pfd. 520,725
75,800 Arden Realty Group 1,639,175
156,900 Bedford Property Investors, Inc. 2,804,588
112,120 Bradley Real Estate, Inc. 2,354,520
100,000 CBL & Associates Properties 2,606,250
104,600 Chelsea GCA Realty, Inc. 3,595,625
145,500 Duke Realty Investments Inc. 3,473,813
52,300 Felcor Lodging Trust Inc. 1,232,319
125,000 Glenborough Realty Trust, Inc. 2,679,688
33,333 Insignia/Esg Holding 424,996
81,900 Kilroy Realty Corp. 1,817,156
89,300 Koger Equity, Inc. 1,506,938
79,500 Liberty Property Trust 1,828,500
54,700 MGI Properties, Inc. 1,599,975
83,500 Pacific Gulf Properties, Inc. 1,654,344
100,000 Prime Group Realty Trust 1,606,250
169,100 TriNet Corporate Realty Trust, Inc. 4,861,625
------------
40,365,831
------------
Technology -- 10.3%
87,662 Benchmark Electronics, Inc.(1) 2,065,536
166,400 Cable Design Technologies(1) 2,745,600
246,200 CHS Electronics, Inc.(1) 2,400,450
196,900 Digi International, Inc. 2,953,500
205,100 DSP Communications, Inc.(1) 2,012,544
13,850 Helix Technology Corp. 158,409
77,480 Hyperion Solutions Corp. 2,324,400
140,900 Neomagic Corp. 2,360,075
74,000 Pinnacle Systems, Inc. 2,516,000
50,300 Plexus Corp.(1) 1,251,213
287,100 Reynolds & Reynolds 5,167,800
See Notes to Financial Statements
58
<PAGE>
THE GLENMEDE FUND, INC.
Small Capitalization Equity Portfolio -- (Continued)
STATEMENT OF NET ASSETS
October 31, 1998
Common Stocks -- (Continued)
Technology (Continued)
210,900 Sterling Software, Inc.(1) $ 5,522,944
221,700 Symantec Corp. 3,547,200
------------
35,025,671
------------
Utilities -- 5.5%
38,500 Eastern Enterprises 1,580,906
51,900 Eastern Utilities Associates 1,346,156
80,100 New Jersey Resources Corp. 3,078,844
51,400 Northwest Natural Gas Co. 1,432,775
60,300 NUI Corp. 1,413,281
30,000 People's Energy Corp. 1,106,250
53,500 Piedmont Natural Gas, Inc. 1,859,125
138,000 Public Service Co. Of New Mexico 3,044,625
53,800 Washington Gas Light Corp. 1,422,338
100,000 Wicor, Inc. 2,437,500
---------
18,721,800
-----------
Total Common Stocks
(Cost $330,364,051) 334,553,067
-----------
Face
Amount
----------
Repurchase Agreement -- 1.5%
$5,089,000 Agreement with Goldman Sachs & Co.,
5.1%, dated 10/30/98 to be repurchased
at $5,091,162 on 11/02/98, collateralized
by $5,200,065 U. S. Treasury Bonds,
9.00% due 11/15/18 (Cost $5,089,000)
5,089,000
------------
Total Investments (Cost $335,453,051)2 100.1% $339,642,067
Liabilities in Excess of OTHER Assets (0.1)% (252,061)
------ ------------
Net Assets 100.0% $339,390,006
====== ============
See Notes to Financial Statements
59
<PAGE>
THE GLENMEDE FUND, INC.
Small Capitalization Equity Portfolio
STATEMENT OF NET ASSETS -- (Concluded)
October 31, 1998
Value
--------
Net Asset Value PAR:
Advisory Class Share ($307,596,199 divided by 20,131,315
shares outstanding) $ 15.28
========
Institutional Share ($31,793,807 divided by 2,078,876
shares outstanding) $ 15.29
========
- --------------------
1 Non-income producing security.
2 Aggregate cost for federal tax purposes was $335,123,554.
See Notes to Financial Statements
60
<PAGE>
THE GLENMEDE FUND, INC.
Large Cap Value Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Shares Value
------ -----
Common Stocks -- 97.8%
Financial Services -- 20.7%
49,400 Allstate Corp. $2,127,287
19,200 American General Corp. 1,315,200
19,069 Associates First Capital Corp. 1,344,364
36,200 Bankamerica Corporation 2,079,238
28,100 Cigna Corp. 2,049,544
30,700 Countrywide Credit Industries, Inc. 1,325,856
51,200 Fleet Financial Group, Inc. 2,044,800
16,800 Golden West Financial Corp. 1,523,550
----------
13,809,839
----------
Electronic Technology -- 16.6%
24,700 Ceridian Corp. 1,417,162
21,400 EMC Corp.(1) 1,377,625
15,100 Intel Corp. 1,346,731
9,000 International Business Machines Corp. 1,335,937
67,800 Oracle Systems Corp.(1) 2,004,337
40,100 Sun Microsystems, Inc.(1) 2,335,825
12,800 Xerox Corp. 1,240,000
----------
11,057,617
----------
Utilities -- 12.8%
46,875 Alltel Corp. 2,194,336
20,700 Columbia Energy Group 1,198,013
22,600 Consolidated Natural Gas Co. 1,193,563
19,200 FPL Group, Inc. 1,201,200
29,400 Texas Utilities Co. 1,286,250
24,700 U.S. West Incorporated 1,417,163
----------
8,490,525
----------
Consumer Non-Durables -- 8.4%
35,000 Gannett Company, Inc. 2,165,625
24,300 McGraw-Hill, Inc. 2,185,481
30,300 VF Corp. 1,266,919
----------
5,618,025
----------
See Notes to Financial Statements
61
<PAGE>
THE GLENMEDE FUND, INC.
Large Cap Value Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Shares Value
------ -----
Common Stocks -- (Continued)
Retail Trade -- 8.1%
29,200 Dayton Hudson Corp. $1,237,350
16,700 Dillards, Inc., Class A 518,744
56,050 Office Depot, Inc.(1) 1,401,250
25,600 SuperValu, Inc. 614,400
84,800 TJX Companies, Inc. 1,605,900
----------
5,377,644
----------
Energy Minerals -- 7.7%
23,400 Chevron Corp. 1,907,100
28,600 Phillips Petroleum Co. 1,236,950
60,100 USX Marathon Group 1,964,519
----------
5,108,569
----------
Producer Manufacturing -- 4.2%
33,900 Dana Corp. 1,417,444
17,325 Honeywell, Inc. 1,383,834
----------
2,801,278
----------
Consumer Durables -- 4.5%
27,300 Ford Motor 1,481,025
31,100 Maytag Corp. 1,537,506
----------
3,018,531
----------
Health Care Services -- 4.4%
24,900 Amgen, Inc.(1) 1,956,206
82,700 Healthsouth Corp.(1) 1,002,738
----------
2,958,944
----------
Aerospace & Defense -- 4.0%
22,600 General Dynamics Corp. 1,337,637
12,400 Sundstrand Corporation 582,025
7,700 United Technologies Corp. 733,425
----------
2,653,087
----------
See Notes to Financial Statements
62
<PAGE>
THE GLENMEDE FUND, INC.
Large Cap Value Portfolio
STATEMENT OF NET ASSETS -- (Concluded)
October 31, 1998
Shares Value
------ -----
Common Stocks -- (Continued)
Transportation -- 3.6%
44,800 Burlington Northern Corp. $1,383,200
47,550 Southwest Airlines Co. 1,007,466
----------
2,390,666
----------
Industrial Services -- 2.8%
41,800 Waste Management 1,886,225
----------
Total Common Stocks
(Cost $61,590,394) 65,170,950
----------
Total Investments (Cost $61,590,394)(2) 97.8% $ 65,170,950
Other Assets in Excess of Liabilities 2.2% 1,449,389
----- ------------
Net Assets 100.0% $ 66,620,339
===== ============
NET ASSET VALUE ($66,620,339 divided by 5,659,366
shares outstanding) $ 11.77
========
- --------------------
(1) Non-income producing security.
(2) Aggregate cost for federal tax purposes was $61,728,170.
See Notes to Financial Statements
63
<PAGE>
THE GLENMEDE FUND, INC.
International Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Shares Value
------ -----
FOREIGN SECURITIES -- 98.2%
United Kingdom -- 19.7%
756,500 Allied Zurich PLC(1) $ 8,947,965
1,353,312 Associated British Foods PLC 12,950,600
864,300 BOC Group PLC 12,637,812
756,500 British American Tobacco(1) 6,752,107
950,000 British Petroleum Co. 14,010,120
5,500,000 British Steel Pl 9,385,530
3,920,312 BTR PLC 6,837,426
1,535,000 Cadbury Schweppes PLC 23,484,863
2,000,000 Caradon PLC 4,149,040
1,100,000 De LA Rue PLC 3,211,324
225,000 Hyder PLC, Cumulative, Redeemable
Preference Shares, 7.875%(1) 449,88
635,333 Hyder PLC, Ordinary Shares 8,731,823
2,396,250 Iceland Group PLC 7,877,540
2,925,000 Johnson Matthey PLC 16,466,712
3,850,000 Mirror Group PLC 9,371,728
1,310,000 Rio Tinto PLC 15,944,108
2,413,200 Scottish Power PLC 23,658,482
1,370,000 Tate & Lyle PLC 7,867,324
4,435,900 Tomkins PLC 20,445,573
1,120,500 Wh Smith Group PLC, Class A 10,291,535
-----------
223,471,440
-----------
Japan -- 19.2%
158,600 Acom Co., Ltd. 8,873,204
571,000 Aoyama Trading Co., Ltd. 14,108,156
412,000 Canon Inc. 7,807,322
900,000 Chugai Pharmaceutical Co. 8,198,694
465,000 Dai Nippon Printing Co., Ltd. 7,173,212
596,000 Denso Corp. 11,242,867
2,580 East Japan Railway Co. 15,321,244
2,000,000 Fuji Heavy Industry Ltd. 9,969,062
410,000 Fuji Photo Film Ltd. 15,045,548
See Notes to Financial Statements
64
<PAGE>
THE GLENMEDE FUND, INC.
International Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Shares Value
------ -----
FOREIGN SECURITIES -- (Continued)
Japan-- (Continued)
430,000 Honda Motor Co. $12,933,998
170,000 Ito Yokado Co., Ltd. 9,934,685
684,000 Kao Corp. 13,872,809
647,000 Kirin Brewery Co., Ltd. 7,061,619
178,000 Nintendo Corp., Ltd. 15,083,190
220 NTT Docomo 7,959,780
205,000 Rohm Co. 18,146,270
180,000 Sony Corp. 11,447,233
305,000 Takefuji Corp. 16,277,501
620,000 Wacoal Corp. 7,075,971
-----------
217,532,365
-----------
France -- 10.5%
80,030 Compagnie de Saint-Gobain 11,845,195
84,200 Groupe Danone 22,271,603
224,745 Lafarge SA 22,985,606
276,000 Lagardere Groupe 11,112,159
310,000 SCOR SA 17,783,820
176,858 Elf Aquitaine SA 20,476,384
200,000 Pernod-Ricard 13,324,450
-----------
119,799,217
-----------
Spain -- 7.8%
651,000 Dragados Construcciones SA 19,394,539
1,513,000 Iberdrola SA1 24,444,819
385,000 Repsol ADR 19,250,000
188,900 Telefonica de Espana ADR 25,867,494
-----------
88,956,852
-----------
Italy -- 7.3%
11,439,990 Bennetton Group S.p.A. 19,171,412
247,000 Ente Nazionale Idrocarbure S.p.A. 15,005,250
442,000 Istituto Mobiliare Italiano ADR 20,497,750
3,838,330 Telecom Italia S.p.A. 27,768,138
-----------
82,442,550
-----------
See Notes to Financial Statements
65
<PAGE>
THE GLENMEDE FUND, INC.
International Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Shares Value
------ -----
FOREIGN SECURITIES -- (Continued)
Germany -- 6.8%
360,000 Bayer AG $14,510,870
314,000 Deutsche Bank AG 20,298,128
180,000 Deutsche Telekom AG 4,869,565
335,000 Hoechst AG 13,978,563
99,000 Siemens AG 6,014,130
47,290 Siemens AG-- ADR 2,908,335
275,200 Veba AG 15,106,087
-----------
77,685,678
-----------
Australia -- 6.0%
4,185,000 Boral Ltd. 6,802,801
1,200,000 Commonwealth Bank of Australia 14,922,274
3,146,000 Email Ltd. 4,720,510
6,600,000 Foster's Brewing Group 16,216,438
637,758 Lend Lease Corp. Ltd. 14,073,842
1,870,789 Westpac Banking Corp., Ltd. 11,380,376
-----------
68,116,241
-----------
Sweden -- 4.2%
872,333 Astra AB 13,707,658
1,235,000 Electrolux AB - Series B 18,614,428
450,000 SKF AB - Series B 5,166,310
480,000 Volvo AB - Series B 10,374,950
-----------
47,863,346
-----------
Netherlands -- 4.0%
468,900 Akzo Nobel 18,223,844
830,000 Algemene Bank Nederland 15,551,392
171,323 Royal KPN N.V. 6,745,843
171,323 TNT Post Group N.V. - ADR 4,561,475
-----------
45,082,554
-----------
Norway -- 3.4%
4,580,000 Christiania Bank OG 16,061,438
See Notes to Financial Statements
66
<PAGE>
THE GLENMEDE FUND, INC.
International Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Shares Value
------ -----
FOREIGN SECURITIES -- (Continued)
Norway -- (Continued)
317,000 Kvaerner AS00 $ 6,851,026
355,000 Norsk Hydro ASA0 15,441,077
-------------
38,353,541
-------------
Finland -- 3.1%
381,200 Oy Nokia AB - Series A ADR 35,475,425
-------------
Belgium -- 1.9%
59,000 Electrabel SA 21,762,295
-------------
Canada -- 1.6%
300,000 Magna International Inc. - Class A 18,618,750
-------------
Denmark -- 1.2%
175,000 Uni-Danmark 13,347,953
-------------
New Zealand -- 0.9%
2,320,000 Telecom Corp. New Zealand 9,515,016
95,000 Tranz Rail Holdings - ADR 504,687
-------------
10,019,703
-------------
Singapore -- 0.6%
1,080,000 Singapore Airlines, Ltd. 6,646,154
-------------
Total FOREIGN SECURITIES
(Cost $904,784,249) 1,115,174,064
-------------
Face
Amount
------
Repurchase Agreement -- 1.6%
$17,941,000 Agreement with Goldman,Sachs & Co 5.1%
dated 10/30/98, to be repurchased at
$17,948,625 on 11/2/98 collateralized by
$18,314,333 U.S. Treasury Bonds, 8.5%
due 2/15/02 (Cost $17,941,000) 17,941,000
-------------
Total Investments (Cost $922,725,249)2 99.8% $1,133,115,064
Other Assets in Excess of Liabilities 0.2 2,076,741
----- --------------
Net Assets 100.0% $1,135,191,805
===== ==============
See Notes to Financial Statements
67
<PAGE>
THE GLENMEDE FUND, INC.
International Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Value
-----
NET ASSET VALUE ($1,135,191,805 divided by 72,470,834
shares outstanding) $ 15.66
=========
- ------------
(1) Non-income producing security.
(2) Aggregate cost for federal tax purposes was $944,340,516.
ABBREVIATION:
ADR -- American Depositary Receipts
See Notes to Financial Statements
68
<PAGE>
THE GLENMEDE FUND, INC.
International Portfolio
SECTOR DIVERSIFICATION
On October 31, 1998, sector diversification of the Portfolio
was as follows (Unaudited):
% of Net
Assets Value
-------- ------------
INDUSTRIES:
Financial Services 12.2% $137,935,918
Food & Beverage 9.1 103,176,897
Electronics 8.2 92,978,919
Chemicals 6.5 74,396,635
Telecommunications 6.3 71,026,451
Oil & Gas 6.2 69,837,720
Engineering & Construction 6.0 67,879,167
Automotive 5.5 63,139,625
Utilities 5.0 57,284,952
Industrial 4.6 51,830,758
Miscellaneous Industries 3.0 33,649,657
Retail 2.8 32,277,230
Electrical 2.7 30,684,760
Manufacturing 2.5 28,501,248
Apparel & Textiles 2.3 26,247,382
Banking 2.2 24,795,185
Consumer Durables/Non-Durables 2.1 23,807,493
Transportation 2.0 22,472,085
Health Care & Pharmaceuticals 1.9 21,906,351
Printing & Publishing 1.7 19,756,263
Insurance 1.6 17,783,819
Energy 1.2 14,010,120
Consumer Services 1.2 13,534,570
Housing & Home Furnishings 0.8 9,515,016
Commercial Services 0.6 6,745,843
-------- --------------
TOTAL FOREIGN SECURITIES 98.2% $1,115,174,064
REPURCHASE AGREEMENT 1.6 17,941,000
-------- --------------
TOTAL INVESTMENTS 99.8% $1,133,115,064
======== ==============
See Notes to Financial Statements
69
<PAGE>
THE GLENMEDE FUND, INC.
Institutional International Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Shares Value
------ -----
FOREIGN SECURITIES -- 96.3%
Japan -- 19.2%
12,800 Acom Co., Ltd. $ 716,122
42,300 Aoyama Trading Co. Ltd. 1,045,140
46,000 Canon Inc. 871,691
70,000 Chugai Pharmaceutical Co. 637,676
36,000 Dai Nippon Printing Co. Ltd. 555,346
43,000 Denso Corp. 811,147
190 East Japan Railway Co. 1,128,309
255,000 Fuji Heavy Industry 1,271,055
31,000 Fuji Photo Film Ltd. 1,137,590
30,000 Honda Motor Co. 902,372
22,000 Ito Yokado Co. Ltd 1,285,665
84,000 Kao Corp. 1,703,678
47,000 Kirin Brewery Co., Ltd. 512,977
13,000 Nintendo Corp. Ltd. 1,101,581
18 NTT Docomo 651,255
15,000 Rohm Company 1,327,776
11,000 Sony Corp. 699,553
25,000 Takefuji Corp. 1,334,221
110,000 Wacoal Corp. 1,255,414
-------------
18,948,568
-------------
United Kingdom -- 19.2%
55,000 Allied Zurich PLC(1) 650,546
123,688 Associated British Foods PLC 1,183,640
75,500 BOC Group PLC 1,103,963
55,000 British American Tobacco(1) 490,900
95,000 British Petroleum Co. 1,401,012
775,000 British Steel Pl 1,322,507
327,437 BTR PLC 571,084
110,000 Cadbury Schweppes PLC 1,682,954
175,000 Caradon PLC 363,041
80,000 De LA Rue PLC 233,551
15,300 Hyder PLC ,Cumulative, Redeemable
Preference Shares, 7.875%(1) 30,588
See Notes to Financial Statements
70
<PAGE>
THE GLENMEDE FUND, INC.
Institutional International Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Shares Value
------ -----
FOREIGN SECURITIES-- (Continued)
United Kingdom -- (Continued)
48,866 Hyder PLC, Ordinary Shares $ 671,599
160,000 Iceland Group PLC 525,991
257,500 Johnson Matthey PLC 1,449,634
279,000 Mirror Group Newspapers PLC 679,146
119,000 Rio Tinto PLC 1,448,358
176,262 Scottish Power PLC 1,728,034
98,000 Tate & Lyle PLC 562,772
390,500 Tomkins PLC 1,799,859
109,800 Wh Smith-- Class A 1,008,488
-----------
18,907,667
-----------
France -- 10.6%
6,925 Compagnie de Saint-Gobain 1,024,965
7,000 Groupe Danone 1,851,559
16,944 Lafarge SA 1,732,933
35,000 Lagardere Groupe 1,409,151
19,700 Pernod-Ricard 1,312,458
24,000 SCOR SA 1,376,812
14,642 Elf Aquitane SA 1,695,231
-----------
10,403,109
-----------
Germany -- 7.3%
32,000 Bayer AG 1,289,855
26,000 Deutsche Bank AG 1,680,737
15,600 Deutsche Telekom AG 422,029
27,000 Hoechst AG 1,126,631
12,000 Siemens AG 728,986
13,110 Siemens AG-- ADR 806,265
20,800 Veba AG 1,141,739
-----------
7,196,242
-----------
Spain -- 7.1%
51,000 Dragados Construcciones SA 1,519,388
114,000 Iberdrola SA1 1,841,844
See Notes to Financial Statements
71
<PAGE>
THE GLENMEDE FUND, INC.
Institutional International Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Shares Value
------ -----
FOREIGN SECURITIES -- (Continued)
Spain -- (Continued)
33,400 Repsol SA-- ADR $ 1,670,000
14,600 Telefonica de Espana -- ADR 1,999,288
-----------
7,030,520
-----------
Italy -- 7.0%
962,000 Bennetton Group S.p.A. 1,612,143
24,000 ENI S.p.A.-- ADR 1,458,000
39,000 Istituto Mobiliare Italiano ADR 1,808,625
272,215 Telecom Italia S.p.A 1,969,321
-----------
6,848,089
-----------
Australia -- 6.2%
350,000 Boral Ltd. 568,932
120,000 Commonwealth Bank of Australia 1,492,227
230,000 Email Ltd 345,110
725,000 Foster's Brewing Group 1,781,351
46,527 Lend Lease Corp. Ltd. 1,026,743
140,825 Westpac Banking Corp. Ltd. 856,666
-----------
6,071,029
-----------
Sweden -- 3.9%
72,000 Astra AB 1,131,393
90,000 Electrolux AB-- Series B 1,356,517
35,000 Skf AB -- Series B 401,824
46,000 Volvo AB-- Series B 994,266
-----------
3,884,000
-----------
Netherlands -- 3.8%
41,200 Akzo Nobel 1,601,242
63,200 Algemene Bank Nederland 1,184,154
11,000 Koninklijke KPN 427,516
4,168 Royal KPN N.V. 164,115
4,168 TNT Post Group N.V.-- ADR 110,973
11,000 TNT Post Group N.V. 294,433
-----------
3,782,433
-----------
See Notes to Financial Statements
72
<PAGE>
THE GLENMEDE FUND, INC.
Institutional International Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Shares Value
------ -----
FOREIGN SECURITIES -- (Continued)
Norway -- 3.1%
315,000 Christiania Bank $1,104,662
22,400 Kvaerner AS 484,110
34,700 Norsk Hydro 1,509,311
-----------
3,098,083
-----------
Finland -- 2.8%
30,000 Oy Nokia AB -- Series A ADR 2,791,875
-----------
Belgium -- 2.0%
5,300 Electrabel SA 1,954,918
-----------
Canada -- 1.5%
24,211 Magna International-- Class A 1,502,595
-----------
Denmark -- 1.1%
14,500 Uni-Danmark 1,105,973
-----------
New Zealand -- 0.9%
194,000 Telecom Corp New Zealand 795,652
10,000 Tranz Rail Holdings 53,125
-----------
848,777
-----------
Portugal -- 0.1%
5,000 Electricidade de Portugal 125,736
-----------
Singapore -- 0.5%
85,000 Singapore Airlines Ltd 523,077
-----------
TOTAL FOREIGN SECURITIES
(Cost $77,868,158) 95,022,691
-----------
Face
Amount
------
Repurchase Agreement -- 3.6%
$3,585,000 Agreement with Goldman, Sachs & Co,
5.1% dated 10/30/98 , to be
repurchased at $3,586,523 on 11/2/98
collateralized by $3,665,528
U.S. Treasury Bonds 11.625% due 11/15/02
(Cost $3,585,000) 3,585,000
-----------
See Notes to Financial Statements
73
<PAGE>
THE GLENMEDE FUND, INC.
Institutional International Portfolio
STATEMENT OF NET ASSETS -- (Concluded)
October 31, 1998
Value
-----
Total Investments (Cost $81,453,158)(2) 99.9% $ 98,607,691
Other Assets in ExCess of Liabilities 0.1 119,417
----- ------------
Net Assets 100.0% $ 98,727,108
===== ============
NET ASSET VALUE ($98,727,108 divided by 6,357,908
shares outstanding) $ 15.53
=========
- --------------------
(1) Non-income producing security.
(2) Aggregate cost for federal tax purposes was $83,157,219.
ABREVIATION:
ADR -- American Depositary Receipts
See Notes to Financial Statements
74
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Institutional International Portfolio
SECTOR DIVERSIFICATION
On October 31, 1998, sector diversification of the Portfolio
was as follows (Unaudited)
% of
Net Assets Value
----------- -----------
INDUSTRIES:
Financial Services 11.3% $11,204,171
Food & Beverage 9.0 8,887,710
Electronics 7.7 7,542,557
Chemicals 6.3 6,259,279
Telecommunications 6.0 5,874,813
Automotive 5.6 5,481,434
Utilities 5.5 5,413,804
Engineering & Construction 5.4 5,330,328
Oil & Gas 4.9 4,823,231
Industrial 4.8 4,757,528
Electrical 3.7 3,615,903
Miscellaneous Industries 3.2 3,121,680
Consumer Durables/Non-Durables 3.0 2,989,343
Apparel & Textiles 2.9 2,867,557
Retail 2.6 2,579,619
Manufacturing 2.1 2,103,451
Banking 1.8 1,805,526
Health Care & Pharmaceuticals 1.8 1,769,068
Transportation 1.7 1,704,510
Consumer Services 1.7 1,685,547
Printing & Publishing 1.5 1,468,042
Energy 1.4 1,401,012
Insurance 1.4 1,376,811
Housing & Home Furnishings 0.8 795,652
Commercial Services 0.2 164,115
---- -----------
TOTAL FOREIGN SECURITIES 96.3% $95,022,691
REPURCHASE AGREEMENT 3.6 3,585,000
---- -----------
TOTAL INVESTMENTS 99.9% $98,607,691
==== ===========
See Notes to Financial Statements.
75
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- 98.3%
South Africa -- 14.9%
12,000 Anglo American Corp. $ 391,986
60,000 Anglo American Platinum 912,343
29,060 Anglogold Ltd. 1,481,592
33 Bidvest Group Ltd. 239
912 Dimension Data Holdings Ltd. 4,193
96,000 Gold Fields Ltd. (2) 669,767
225,900 Harmony Gold Mining Co. (2) 1,141,623
12,000 Impala Platinum Holdings 131,163
1,119,900 Iscor Ltd. 284,483
40,000 JD Group Ltd. 186,047
36,000 Liberty Life Association 618,247
420,000 Metro Cash & Carry Ltd. 285,510
10,000 Nedcor Ltd. 200,358
64,800 Persetel Data Holdings 643,363
120,000 Sappi Ltd. 601,073
38,000 South African Breweries 739,606
----------
8,291,593
----------
South Korea -- 11.2%
7,800 Dae Duck Electronics 554,522
60,580 Daewoo Heavy Industries 227,979
182,000 Housing & Commercial BAN 718,058
98,000 Korea Electric Power 1,747,344
73,500 LG Chemical Limited 571,605
23,500 LG Information & Communication 540,250
27,443 Medison Company Ltd. 303,997
14,388 Samsung Display Devices 540,369
46,020 Samsung Electro Mechanic 576,123
1,513 Samsung Electronics 61,989
1,717 Samsung Fire & Marine 429,901
----------
6,272,137
----------
See Notes to Financial Statements.
76
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
India -- 9.3%
45,000 Bajaj Auto GDR $ 765,000
22,500 Hindalco Industries GDR 264,375
47,000 Indian Tobacco Company Ltd GDR 940,000
196,049 India Access Fund (2) 1,298,825
158,700 India Fund (2) 981,956
52,000 Larsen and Toubro GDR 351,000
26,000 Mahanagar Telephone Nigam Ltd ADR 285,350
60,000 Reliance Industries GDR 306,000
----------
5,192,506
----------
Taiwan -- 8.4%
135,288 Accton Technology (2) 389,629
60,240 Advanced Semiconductor Engineering (2) 775,590
76,875 Asia Cement GDR 711,094
38,500 Asustek Computer Inc. (2) 294,525
49,000 China Steel Corp GDR 674,975
45,800 Fuban Insurance (2) 578,225
133,280 Walsin Lihwa GDR (2) 669,732
80,000 Yang Ming Marine Transport (2) 566,000
----------
4,659,770
----------
China -- 8.1%
1,621,000 Beijing Datang Power 502,344
19,000 China International Marine (1) 9,813
363,000 China Telecommunications (2) 681,987
401,900 Chiwan Wharf Holdings `B' (1) 64,870
1,195,200 Founder Hong Kong Ltd. 233,037
814,000 Guangdong Kelon Electric 693,705
600,000 Heilongjiang Electric (2) 240,000
899,000 Huaneng Power International (2) 313,422
336,000 NG Fung Hong 297,192
1,223,000 Qingling Motors Company 225,823
635,000 Shanghai Dazhong Taxi (2) 298,450
544,800 Wuxi Little Swan (1) 270,835
See Notes to Financial Statements.
77
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
China -- (Continued)
1,900,000 Zhenjiang Expressway Co. $ 372,910
1,604,000 Zhenhai Refining 327,241
----------
4,531,629
----------
Thailand -- 7.6%
83,500 Advanced Info Service 614,138
1,100,000 Bank of Asia (2) 539,363
72,600 Bec World PLC 446,952
73,500 Delta Electronics (F) 390,425
217,929 Electricity Generating Pub. Co. (2) 575,841
72,200 Grammy Entertainment PLC (1) 312,716
31,000 Ptt Exploration & Production (2) 298,938
831,000 Thai Farmers Bank (2) 1,052,615
----------
4,230,988
----------
Indonesia -- 4.8%
31,000 Asia Pulp and Paper (2) 259,625
36,800 Freeport-McMoran Copper B 453,100
394,000 PT Gudang Garam Tbk 362,268
140,100 PT Telekomunikas Indonesia ADR 700,500
3,119,000 Ramayana Lestari Sentosa (1) 418,658
567,500 Semen Gresik (Pers) Tbk 472,282
----------
2,666,433
----------
Philippines -- 3.6%
1,417,000 Ayala Land 431,797
635,000 Cosmos Bottling Pfd. (1) 116,891
3,835,500 International Container Terminal Services Inc. 257,608
140,500 Manila Electric Co. 415,908
16,000 Philippine Long Distance Telephone Co. 390,000
2,284,000 SM Prime Holdings 386,348
----------
1,998,552
----------
See Notes to Financial Statements.
78
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
Israel -- 3.4%
52,000 Dor Energy (2) $ 113,100
8,500 ECI Telecom ADR (2) 281,562
15,000 Gilat Satellite Networks (2) 697,500
235,046 Makhteshim-Agan Industries (2) 417,519
6,400 Nice Systems Ltd ADR (2) 121,600
30,000 Scitex Corporation (2) 258,750
----------
1,890,031
----------
Brazil -- 3.3%
178 Banco Bradesco SA Pfd. 1
989,000 Banco Itau SA Pfd. 480,902
6,145,200 Caemi Mineracao E Metal 131,322
39,000 Cia Vale Do Rio Doce 425,050
19,000 Cia Vale Do Rio Doce Pfd. 286,720
6,168,000 Embratel (2) 46,022
48,000,000 Lojas Americanas SA Pfd. (2) 247,485
6,168,000 Telebras On Ord 672
6,168,000 Telecelular Sul (2) 3,723
6,168,000 Telecentro Oeste Celular (2) 3,878
6,168,000 Telecentro Sul Participacoes (2) 28,441
6,168,000 Teleleste Celular (2) 1,913
6,168,000 Telemig Celular (2) 3,465
6,168,000 Telenordeste Celular (2) 2,327
6,168,000 Telenorte Celular Participacoes (2) 1,241
6,168,000 Telenorte Leste Participacoes (2) 35,163
6,168,000 Telesp Celular Participacoes (2) 17,581
6,168,000 Telesp Participacoes SA (2) 110,660
6,168,000 Telesudeste Celular Participacoes (2) 12,152
----------
1,838,718
----------
Czech Republic -- 3.3%
10,000 CEZ (2) 227,629
663 Milo Olomouc Czk1000 (1),(2) 3,456
105,000 SPT Telecom (2) 1,589,900
----------
1,820,985
----------
See Notes to Financial Statements.
79
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
Egypt -- 2.4%
4,100 Alexandria Real Estate (2) $ 154,411
62,810 Arabian International Construction (2) 456,450
11,600 EFG Hermes GDR (2) 133,400
25 Egypt Starch & Glucose 265
3,900 Egyptian International Pharmaceuticals 196,913
41,666 Egyptian Mobile Phone (2) 223,841
200 Financial & Industrial 3,387
8,500 Oriental Weavers Company 183,401
---------
1,352,068
---------
Poland -- 2.3%
21,000 Bank Polska Kasa Opieki (2) 240,994
46,000 Elektrim SA 547,937
81,000 Kghm Polska Miedz 289,454
29,000 Kghm Polska Miedz ADR 222,720
---------
1,301,105
---------
Morocco -- 2.2%
4,600 Omnium Nord Africain (1) 603,934
4,900 Wafabank1 649,712
---------
1,253,646
---------
Malaysia -- 2.2%5
127,000 Genting Berhad (1) 176,530
138,000 Kian Joo Can Factory (1) 117,576
198,000 Kuala Lumpur Kepong (1) 176,616
792,000 Malayan Cement BHD (1) 190,080
131,000 Malaysian Pacific Industries (1) 104,014
54,000 Nestle Malaysia BHD (1) 140,400
144,000 Star Publications (1) 119,808
164,000 Telekom Malaysia (1) 223,040
---------
1,248,064
---------
See Notes to Financial Statements.
80
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
Lebanon -- 1.5%
13,000 Banque Audi GDR (1) $352,300
10,400 Banque Liban Outre GDR (1) 314,600
15,200 Solidere GDR 163,400
--------
830,300
--------
Russia -- 1.3%
26,000 Gazprom ADR 242,450
16,000 Lukoil ADR = 4 Shs 256,000
32,000 Rostelekom Sponsored ADR 122,000
34,000 Surgutneftegaz ADR 72,250
18,000 UES Ser3 CSFB (2) 56,250
--------
748,950
--------
Greece -- 1.4%
28,830 Aegek 118,865
17,700 Aktor (2) 160,738
25,000 Delta Dairy 293,673
24,000 Hellenic Technodomiki 157,811
270 Hellenic Technodomiki Rights (2) 199
2,066 Hellenic Telecommunication Organization SA 46,996
840 Lambrakis Press (2) 10,450
--------
788,732
--------
Argentina -- 1.4%
50,500 Nobleza Piccardo ARS (1) 176,810
20,300 YPF Sociedad Anonima 587,431
--------
764,241
--------
Mexico -- 1.3%
50,000 Controladora Comercial 31,674
625,000 Grupo Gigante SA Series (2) 157,750
178,000 Grupo Mexico SA 452,796
10,200 Pepsi Gemex SA Spons GDR 66,300
--------
708,520
--------
See Notes to Financial Statements.
81
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
Turkey -- 1.1%
9,255,250 Aksa Akrilik (1) $ 122,190
17,817,000 Haci Omer Sabanci 269,270
2,334,000 Kartonsan Karton Sanayi 68,926
10,700,000 Turcas Petroculuk AS 159,851
----------
620,237
----------
Sri Lanka -- 0.8%
89,677 John Keells Holdings Ltd. 254,118
300,000 Lanka Lubricant (1) 214,765
----------
468,883
----------
Peru -- 0.7%
31,000 Southern Peru Copper Corp. 370,062
----------
Slovakia -- 0.4%
2,000 Chirana Prema AS (1),(2) 6,858
5,700 Slovnaft AS (1) 105,869
19,000 Vychodoslovenske Zelezia (1) 114,013
----------
226,740
----------
Chile -- 0.3%
9,510 Compania Cerveceria Unida ADR 171,180
----------
Hungary -- 0.3%
6,900 Borsodchem GDR 169,947
----------
Pakistan -- 0.3%
500 Indus Motors Co. Ltd. 90
40 Maple Leaf Cement Industries (2) 2
10,000 Pakistan State Oil Co. Ltd. 9,865
400,000 Pakistan Telecom Corp. Ltd. (2) 139,802
----------
149,759
----------
Venezuela -- 0.2%
25,812 Ceramica Carabobo (1) 22,586
7,666 International Briquettes Holdings (1),(2) 33,539
See Notes to Financial Statements.
82
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
Venezuela -- (Continued)
38,438 Sudamtex de Venezuela (1) $ 50,089
113,400 Venepal S.A. C.A. ADR 144A (1),(3) 14,175
-----------
120,389
-----------
Malawi -- 0.1%
10,200 Press Corp. (1),(2) 71,400
-----------
Slovenia -- 0.1%
7,300 SKB Bank GDR 49,093
-----------
Kenya -- 0.1%
46,094 Kenya Commercial Bank 45,630
-----------
Total Investments (Cost $64,739,970)(4) 98.3% $54,852,288
Other Assets in Excess of Liabilities 1.7 936,315
----- -----------
Net Assets 100.0% $55,788,603
===== ===========
NET ASSET VALUE ($55,788,603 divided by 9,504,634
shares outstanding) $ 5.87
===========
- --------------------
(1) Illiquid Security.
(2) Non-income producing security.
(3) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from
registrations, normally to qualified institutional buyers.
(4) Aggregate cost for federal tax purposes was $65,375,605.
(5) As of September 1, 1998, the repatriation of proceeds received from the
sale of Malaysian securities has been blocked until at least 9/1/99. These
securities are considered illiquid and are being fair valued using methods
determined in good faith by the valuation committee of the Board of
Directors.
ABBREVIATIONS:
ADR -- American Depositary Receipts
CSFB -- Credit Suisse Financial Brokers
GDR -- Global Depositary Receipt
See Notes to Financial Statements.
83
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Emerging Markets Portfolio
SECTOR DIVERSIFICATION
On October 31, 1998, sector diversification of the Portfolio
was as follows (Unaudited):
% of
Net Assets Value
----------- -----------
INDUSTRIES:
Multi-Industry 10.9% $ 6,071,661
Telecommunications 9.5 5,309,200
Banking 8.8 4,899,615
Electrical & Electronics 5.9 3,300,510
Beverages & Tobacco 4.6 2,544,973
Utilities-- Electrical & Gas 4.2 2,334,295
Metals-- Non Ferrous 3.7 2,090,394
Financial Services 3.6 1,987,785
Gold Mines 3.2 1,808,072
Chemicals 3.2 1,801,106
Metals-- Steel 3.2 1,794,345
Data Processing & Reproduction 3.1 1,740,546
Broadcasting & Publishing 3.1 1,725,777
Insurance 2.9 1,617,313
Energy Sources 2.5 1,387,484
Building Materials & Components 2.4 1,331,265
Appliances & Household Durables 1.8 1,028,054
Merchandising 1.8 1,020,761
Automobiles 1.7 977,929
Real Estate 1.7 971,886
Forest Products & Paper 1.7 941,304
Misc. Materials & Commodities 1.6 872,517
Food & Household Products 1.5 853,804
Wholesale & International Trade 1.5 833,321
Transportation-- Shipping 1.5 831,808
Construction & Housing 1.3 732,976
Transportation-- Rail/Road 1.2 672,446
Industrial Components 1.2 654,189
Electronic Comp. & Instruments 1.2 644,624
Health & Personal Care 0.9 516,332
Leisure & Tourism 0.9 489,794
Energy Equipment & Services 0.9 487,778
Business & Public Services 0.5 261,282
Machinery & Engineering 0.4 235,541
Textiles & Apparel 0.1 49,935
Recreation, Other Consumer Goods 0.1 31,666
---- -----------
TOTAL FOREIGN SECURITIES 98.3% $54,852,288
TOTAL INVESTMENTS 98.3% $54,852,288
==== ===========
See Notes to Financial Statements.
84
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Global Equity Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- 94.6%
U.S.A. -- 24.6%
4,650 Allstate Corp. $200,241
4,300 Alltel Corp. 201,294
1,800 American General Corp. 123,300
2,300 Amgen, Inc.(1) 180,694
1,793 Associates First Capital Corp. 126,406
3,400 Bankamerica Corporation 195,288
200 BellSouth Corp. 15,963
4,125 Burlington Northern Corp. 127,359
2,275 Ceridian Corp. (1) 130,528
2,250 Chevron Corp. 183,375
2,700 Cigna Corp. 196,931
1,800 Coastal Corp. 63,450
1,937 Columbia Energy Group 112,104
2,100 Consolidated Natural Gas Co. 110,906
2,825 Countrywide Credit Industries, Inc. 122,005
3,225 Dana Corp. 134,845
2,700 Dayton Hudson Corp. 114,413
1,525 Dillards, Inc.-- Class A 47,370
2,000 EMC Corp. (1) 128,750
4,900 Fleet Financial Group, Inc. 195,694
2,550 Ford Motor 138,337
1,825 FPL Group, Inc. 114,177
3,300 Gannett Company, Inc. 204,187
2,125 General Dynamics Corp. 125,773
1,575 Golden West Financial Corp. 142,833
7,200 Healthsouth Corp. (1) 87,300
1,625 Honeywell, Inc. 129,797
1,400 Intel Corp. 124,863
800 International Business Machines Corp. 118,750
2,900 Maytag Corp. 143,369
2,325 McGraw-Hill, Inc. 209,105
5,275 Office Depot, Inc. (1) 131,875
6,400 Oracle Systems Corp. (1) 189,200
See Notes to Financial Statements.
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Global Equity Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
U.S.A. -- (Continued) (1)
2,625 Phillips Petroleum Co. $ 113,531
4,425 Southwest Airlines Co. 93,755
2,800 Sun Microsystems, Inc. (1) 163,100
1,150 Sundstrand Corporation 53,978
2,450 SuperValu, Inc. 58,800
2,750 Texas Utilities Co. 120,313
7,975 TJX Companies, Inc. 151,027
2,225 U.S. West Incorporated 127,659
700 United Technologies Corp. 66,675
5,625 USX Marathon Group 183,867
2,800 VF Corp. 117,075
6,700 Waste Management Inc. 302,338
1,200 Xerox Corp. 116,250
---------
6,238,850
---------
United Kingdom -- 14.1%
15,000 Allied Zurich PLC (1) 177,422
26,000 Associated British Foods PLC 248,809
11,500 BOC Group PLC 168,153
15,000 British American Tobacco 133,882
13,000 British Petroleum Co. 191,717
80,000 British Steel PLC 136,517
44,687 BTR PLC 77,939
55,000 BTR PLC B 30,825
29,000 Cadbury Schweppes PLC 443,688
50,000 Caradon PLC 103,726
21,000 De La Rue PLC 61,307
13,000 Hyder Ord Gbp 1.20 178,668
20,000 Johnson Matthey PLC 112,593
70,000 Mirror Group Newspapers PLC 170,395
18,000 Rio Tinto PLC 219,079
45,000 Scottish Power PLC 441,170
21,600 Smith (W.H.) Group PLC 198,391
See Notes to Financial Statements.
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Global Equity Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
United Kingdom -- (Continued)
26,000 Tate & Lyle PLC $ 149,307
68,000 Tomkins PLC 313,420
---------
3,557,008
---------
Japan -- 13.2%
2,800 Acom Co., Ltd. 156,652
7,800 Aoyama Trading Co., Ltd. 192,721
8,000 Canon Inc. 151,598
15,000 Chugai Pharmaceutical Co. 136,645
9,000 Dai Nippon Printing Co. Ltd. 138,836
12,000 Denso Corp. 226,366
25,000 Fuji Heavy Industry 124,613
6,000 Fuji Photo Film Ltd. 220,179
27,000 Hitachi Ltd. 137,599
5,000 Honda Motor Co. 150,395
3,000 Ito-Yokado Co. Ltd. 175,318
13,000 Kao Corp. 263,664
12,000 Kirin Brewery Co, Ltd. 130,973
2,000 Nintendo Corp. Ltd. 169,474
2,000 Rohm Co. 177,037
3,000 Sony Corp. 190,787
5,000 Takefuji Corp. 266,844
40,000 Toshiba Corp. 188,037
12,000 Wacoal Corp 136,954
---------
3,334,692
---------
France -- 7.6%
1,600 Compagnie de Saint-Gobain 236,815
1,600 Groupe Danone 423,213
2,700 Lafarge-Coppee 276,140
5,500 Lagardere Groupe 221,438
2,000 Pernod-Ricard 133,245
6,000 SCOR SA 344,203
2,500 Societe Nationale ELF 289,447
---------
1,924,501
---------
See Notes to Financial Statements.
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THE GLENMEDE FUND, INC.
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Global Equity Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
Spain -- 6.5%
12,000 Dragados & Construcciones SA $ 357,503
28,000 Iberdrola SA 452,383
7,000 Repsol SA 351,467
11,000 Telefonica de Espana 496,840
---------
1,658,193
---------
Italy -- 5.5%
220,000 Bennetton Group S.p.A. 368,681
48,000 Eni S.p.A 285,714
26,000 Instituto Mobiliare Italiano S.p.A 400,000
46,000 Telecom Italia S.p.A 332,784
---------
1,387,179
---------
Germany -- 5.0%
6,000 Bayer AG 241,848
4,500 Deutsche Bank AG 290,897
6,700 Hoechst AG 279,571
2,800 Siemens AG 170,097
5,000 Veba AG 274,457
---------
1,256,870
---------
Australia -- 4.6%
82,000 Boral Ltd. 133,293
20,000 Commonwealth Bank of Australia 248,705
126,000 Foster's Brewing Group 309,587
12,000 Lend Lease Corp., Ltd. 264,812
35,000 Westpac Banking Corp., Ltd. 212,912
---------
1,169,309
---------
Sweden -- 3.2%
14,000 Astra AB 219,993
20,000 Electrolux AB-- Series B 301,448
9,000 SKF AB -- Series B 103,326
9,000 Volvo AB-- Series B 194,530
---------
819,297
---------
See Notes to Financial Statements.
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THE GLENMEDE FUND, INC.
-----------------------
Global Equity Portfolio
STATEMENT OF NET ASSETS--(Continued)
October 31, 1998
Shares Value
- -------------- --------------
COMMON STOCKS -- (Continued)
Norway -- 2.5%
85,000 Christiania Bank OG Kreditkasse $ 298,083
6,000 Kvaerner AS 129,672
4,500 Norsk Hydro ASA 195,732
-----------
623,487
-----------
Finland -- 2.4%
6,800 Oy Nokia AB-- Series A 619,533
-----------
Belgium -- 1.3%
900 Electrabel SA 331,967
-----------
Netherlands -- 1.2%
16,000 Algemene Bank Nederland 299,786
-----------
Canada -- 1.0%
4,000 Magna International, Inc.-- Class A 248,250
-----------
Denmark -- 0.8%
2,700 Uni-Danmark 205,940
-----------
New Zealand -- 0.6%
29,000 Telecom Corp New Zealand 118,938
6,000 Tranz Rail Holdings-- ADR 31,875
-----------
150,813
-----------
Singapore -- 0.5%
19,000 Singapore Airlines Ltd. 116,923
-----------
Total Common Stocks
(Cost $23,284,662) 23,942,598
-----------
Face
Amount
- --------------
Repurchase Agreement -- 4.8%
$1,213,000 Agreement with Goldman, Sachs & Co.,
5.1%, dated 10/30/98, to be repurchased
at $1,213,516 on 11/02/98 collateralized
by $1,240,850 U.S. Treasury Bonds, 13.75%
due 08/15/04 (Cost $1,213,000) 1,213,000
---------
See Notes to Financial Statements.
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THE GLENMEDE FUND, INC.
-----------------------
Global Equity Portfolio
STATEMENT OF NET ASSETS--(Concluded)
October 31, 1998
Value
--------------
Total Investments (Cost $24,497,662)(2) 99.4% $25,155,598
Other Assets in ExCess of Liabilities 0.6 155,051
----- -----------
Net Assets 100.0% $25,310,649
===== ===========
NET ASSET VALUE ($25,310,649 divided by 2,517,766
shares outstanding) $ 10.05
===========
- --------------------
(1) Non-income producing security.
(2) Aggregate cost for federal tax purposes was $24,687,348.
ABREVIATION:
ADR -- American Depositary Receipts
See Notes to Financial Statements.
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THE GLENMEDE FUND, INC.
-----------------------
Global Equity Portfolio
SECTOR DIVERSIFICATION
On October 31, 1998, sector diversification of the Portfolio
was as follows (Unaudited):
% of
Net Assets Value
----------- -----------
INDUSTRIES:
Financial Services 10.2% $ 2,578,279
Food & Beverage 8.7 2,208,922
Utilities 6.7 1,693,270
Housing & Home Furnishings 5.4 1,378,678
Industrial 5.1 1,292,645
Engineering & Construction 4.6 1,161,419
Banking 4.3 1,094,810
Consumer Services 4.0 1,023,359
Automotive 3.7 944,155
Electronics 3.7 927,789
Oil & Gas 3.7 926,626
Chemicals 3.6 909,750
Retail 3.5 873,454
Consumer Durables/Non-Durables 3.4 851,556
Energy 3.3 846,846
Apparel & Textiles 2.7 698,356
Telecommunications 2.7 677,697
Healthcare & Pharmaceuticals 2.5 624,630
Technology 2.4 607,690
Printing & Publishing 2.3 591,976
Electrical 2.0 502,063
Insurance 1.4 344,202
Waste Management 1.1 302,337
Transportation 1.0 242,552
Manufacturing 0.9 219,576
Aerospace & Defense 0.8 192,448
Computers 0.5 118,750
Miscellaneous Industries 0.4 108,763
---- -----------
TOTAL COMMON STOCK 94.6% $23,942,598
REPURCHASE AGREEMENT 4.8 1,213,000
---- -----------
TOTAL INVESTMENTS 99.4% $25,155,598
==== ===========
See Notes to Financial Statements.
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THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements
1. Significant Accounting Policies
The Glenmede Fund, Inc. (the "Fund") consists of ten portfolios: Government
Cash Portfolio, Tax-Exempt Cash Portfolio, Core Fixed Income Portfolio, Tax
Managed Equity Portfolio (formerly Equity Portfolio), Small Capitalization
Equity Portfolio, Large Cap Value Portfolio, International Portfolio,
Institutional International Portfolio, Emerging Markets Portfolio and Global
Equity Portfolio (collectively the "Portfolios"). The Fund was incorporated in
the State of Maryland on June 30, 1988 and is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 as an open-end
management Investment company. Effective January 1, 1998 the Small
Capitalization Equity Portfolio consists of two classes of shares, the Advisory
Shares and Institutional Shares.
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 and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by each Portfolio in the preparation of its financial statements.
Portfolio valuation: Securities held by the Government Cash and Tax-Exempt
Cash Portfolios are valued by the "amortized cost" method of valuation, which
approximates market value. Amortized cost valuation involves valuing an
instrument at its cost initially and thereafter assuming a constant amortization
to maturity of any discount or premium, regardless of the effect of fluctuating
interest rates on the market value of the instrument.
Equity securities listed on a U.S. securities exchange for which market
quotations are readily available are valued at the last quoted sale price as of
the close of the exchange's regular trading hours on the day the valuation is
made. Securities listed on a foreign exchange and unlisted foreign securities
are valued at the last quoted sales price available before the time when assets
are valued. Price information on listed securities is taken from the exchange
where the security is primarily traded. Unlisted equity securities and listed
securities not traded on the valuation date for which market quotations are
readily available are valued at an amount that does not exceed the asked price
and is not less than the bid price.
Bonds and other fixed-income securities are valued according to the
broadest and most representative market, which is ordinarily the
over-the-counter market, at the most recent quoted bid price or when exchange
valuations are used, at the latest quoted sale price on the day of valuation. If
there is no such reported sale, the latest quoted bid price will be used. Bond
and other fixed-income securities may be valued on the basis of prices provided
by a pricing service when the portfolio's investment advisor believes such
prices reflect the fair market value of such securities. Debt securities
purchased by non-money market portfolios with remaining maturities of 60 days or
less are valued at amortized cost. Securities with remaining maturities
exceeding 60 days are valued at their market or fair value until the 61st day
prior to maturity and are valued at amortized cost, thereafter.
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THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
The value of other assets and securities for which no market quotations are
readily available (including restricted securities) is determined in good faith
at fair value by the Board of Directors.
In determining fair value, management considers all relevant qualitative
and quantitative information available. These factors are subject to change over
time and are reviewed periodically. The values assigned to fair value
investments are based on available information and do not necessarily represent
amounts that might ultimately be realized, since such amounts depend on future
developments inherent in long-term investments. Furthermore, because of the
inherent uncertainty of valuation, those estimated values may differ
significantly from the values that would have been used had a ready market of
the investments existed, and the differences could be material. On October 31,
1998, 9.5% of the net assets of the Emerging Markets Portfolio, totalling
$5,354,268, were considered illiquid by Pictet International Management Limited,
the Portfolio's Subadvisor. At October 31, 1998 the total value of fair valued
securities in this portfolio was $1,248,064 representing 2% of total
investments.
REPURCHASE AGREEMENTS: Each Portfolio may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Portfolio
takes possession of an underlying debt obligation subject to an obligation of
the seller to repurchase, and the Portfolio to resell, the obligation at an
agreed-upon price and time, thereby determining the yield during the Portfolio's
holding period. This arrangement results in a fixed rate of return that is not
subject to market fluctuations during the Portfolio's holding period. The value
of the collateral is at least equal at all times to 101% of the total amount of
the repurchase obligations, including interest. In the event of counterparty
default, the Portfolio has the right to use the collateral to offset losses
incurred. There is potential loss to the Portfolio in the event the Portfolio is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Portfolio seeks to assert its
rights. The Portfolio's investment advisor, acting under the supervision of the
Board of Directors, reviews the value of the collateral and the creditworthiness
of those banks and dealers with which the Portfolio enters into repurchase
agreements to evaluate potential risks.
FORWARD FOREIGN EXCHANGE CONTRACTS: The International, Institutional
International, Emerging Markets and Global Equity Portfolios may enter into
forward foreign exchange contracts. Forward foreign exchange contracts are
valued at the forward rate and marked-to-market daily. The change in market
value is recorded by the Portfolio as an unrealized gain or loss. When the
contract is closed, the Portfolio records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying prices of the Portfolio's securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign exchange contracts limit the
93
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THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
risk of loss due to a decline in the value of the hedged currency, they also
limit any potential gain that might result should the value of the currency
increase. In addition, the Portfolio could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts.
FOREIGN CURRENCY: The books and records of each Portfolio are maintained in
United States (U.S.) dollars. Foreign currencies, investments and other assets
and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign
currency exchange rates have been included in the unrealized appreciation/
(depreciation) on foreign currency translations. Net realized foreign currency
gains and losses resulting from changes in exchange rates include foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of the
Portfolio and the amount actually received. The portion of foreign currency
gains and losses related to fluctuation in exchange rates between the purchase
settlement date and subsequent sale trade date is included in realized gains and
losses on investment securities sold.
REVERSE REPURCHASE AGREEMENTS: The Government Cash Portfolio the Core Fixed
Income Portfolio, and the Emerging Markets Portfolio may enter into reverse
repurchase agreements. Under the terms of a reverse repurchase agreement, the
Portfolio sells a security subject to an obligation to repurchase the security
from the buyer at an agreed upon time and price thereby determining the yield
during the buyer's holding period. A reverse repurchase agreement involves the
risk that the market value of the collateral retained by the Portfolio may
decline below the price of the securities the Portfolio has sold but is
obligated to repurchase under the agreement. In the event the buyer of
securities under a repurchase agreement files for bankruptcy or becomes
insolvent, the Portfolio's use of the proceeds of the agreement may be
restricted pending a determination by the party, or its trustee or receiver,
whether to enforce the Portfolio's obligation to repurchase the securities. If
entering into reverse repurchase agreements, the Portfolio will maintain cash,
U.S. Government securities or other liquid high grade debt obligations at least
equal in value to its obligations with respect to reverse repurchase agreements.
Under normal circumstances the Core Fixed Income Portfolio, the Government Cash
Portfolio and the Emerging Markets Portfolio will not enter into reverse
repurchase agreements if entering into such agreements would cause, at the time
of entering into such agreements, more than one-third of the value of its total
assets to be subject to such agreements.
The Core Fixed Income Portfolio's average daily balance of reverse
repurchase agreements outstanding during the year ended October 31, 1998 was
approximately $51,810,752 at a weighted average interest rate of approximately
4.41%. The maximum amount of reverse repurchase agreements outstanding at a
month-end during the year ended October 31, 1998 was $67,576,000 as of September
30, 1998, which was 21.5% of
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THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
total assets. The amount of reverse repurchase agreements outstanding on October
31, 1998 was $60,237,563, which was 18.9% of total assets.
INTEREST-ONLY SECURITIES: The Core Fixed Income Portfolio may invest in
interest-only securities, which are the interest portions of "stripped"
securities. The holders of interest-only securities receive the interest on the
underlying security, but no principal payments. While the timing of the interest
receipts is known, the amount of interest to be received is not known.
COLLATERALIZED MORTGAGE OBLIGATIONS: The Core Fixed Income Portfolio may
invest in collateralized mortgage obligations, which are backed by a pool of
mortgages or mortgage-backed securities. The bonds that form collateralized
mortgage obligations are grouped into classes, which have different coupon rates
or maturities. The principal cash flows of the underlying pool of mortgages are
channeled sequentially into each class.
TBA PURCHASE COMMITMENTS: The Core Fixed Income Portfolio may enter into
TBA (to be announced) purchase commitments to purchase securities for a fixed
price at a future date, typically not exceeding 45 days. TBA purchase
commitments may be considered securities in themselves, and involve a risk of
loss if the value of the security to be purchased declines prior to settlement
date. This risk is in addition to the risk of decline in the value of the
Portfolio's other assets.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded as of the trade date. Realized gains and losses on investments sold are
computed on the basis of identified cost. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Dividend income for foreign
securities is recorded on the ex-dividend date except that certain dividends
from foreign securities are recorded as soon as the Portfolio is informed of the
ex-dividend date. Interest income is recorded on the accrual basis and includes
amortization of premiums and accretion of discounts when appropriate.
Securities purchased or sold on a when-issued or delayed-delivery basis may
be settled a month or more after the trade date. Interest income is not earned
or accrued until settlement date. The Portfolio instructs the custodian to
segregate assets in a separate account with a current value at least equal to
the amount of its when-issued purchased commitments. When issued purchase
committments involve a risk of loss if the value of the security to be purchased
declines prior to settlement date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment
income, if any, of the Government Cash and Tax-Exempt Cash Portfolios are
declared each day the Portfolio is open for business and are paid monthly.
Dividends from net investment income, if any, of the Tax Managed Equity, Small
Capitalization Equity, Large Cap Value, International, Institutional
International, Emerging Markets, and Global Equity Portfolios are declared and
paid quarterly. Dividends from net investment income, if any, of the Core Fixed
Income Portfolio are declared and paid monthly. The Portfolios distribute any
net realized capital gains on an annual basis. Additional distributions of net
95
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THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
investment income and capital gains for each Portfolio may be made at the
discretion of the Board of Directors in order to avoid the 4% nondeductible
Federal excise tax. Income distributions and capital gains distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities held
by each Portfolio, timing differences and differing characterization of
distributions made by each Portfolio.
FEDERAL INCOME TAXES: Each Portfolio intends to qualify as a regulated
investment company by complying with the requirements of the Internal Revenue
Code applicable to regulated investment companies and by distributing
substantially all of its taxable income to its shareholders. Therefore, no
Federal income tax provision is required. The portfolios may periodically make
reclassifications among certain of its capital accounts as a result of
differences in the characterization and allocation of certain income and capital
gains determined annually in accordance with federal tax regulations which may
differ from generally accepted accounting principles.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER RELATED PARTY
TRANSACTIONS
The Institutional International Portfolio, the Global Equity Portfolio, and
the Small Capitalization Equity Portfolio pay The Glenmede Trust Company (the
"Advisor") for their investment advisory services a monthly fee at the annual
rate of 0.75%, 0.70% and 0.55%, respectively, of the value of their average
daily net assets. From November 1, 1997 through December 31, 1997, the
Small-Capitalization portfolio did not pay advisory fees. The Emerging Markets
Portfolio pays Pictet International Management Limited (the "Subadvisor") for
its investment advisory services a monthly fee at the annual rate of 0.50% of
the value of its average daily net assets. In addition, the Emerging Markets
Portfolio also pays the Advisor for its investment advisory services a monthly
fee at the annual rate of 0.75% of the value of its daily net assets. The
Advisor does not receive a fee from any remaining Portfolios for its investment
advisory services. However, as of January 1, 1995, each Portfolio (except the
Institutional International, Global Equity, Emerging Markets, and Small
Capitalization Equity Portfolios) pays the Advisor a shareholder servicing fee
at the annual rate of 0.05% of the value of its average daily net assets. In
addition, the Institutional shares of the Small Capitalization Equity Portfolio
pays the Advisor a shareholder servicing fee at the annual rate of 0.05% of the
value of its average daily net assets and the Advisor shares of the Small
Capitalization Equity Portfolio pays the Advisor a shareholder servicing fee at
the annual rate of 0.25% of the value of its average daily net assets.
For the Institutional International Portfolio, the Advisor has agreed to
waive its fees and/or reimburse expenses to the extent necessary to ensure that
the Portfolio's total operating expenses do not exceed 1.00% of the Portfolio's
average daily net assets. There were no waivers necessary for the year ended
October 31, 1998.
Investment Company Capital Corp. ("ICC"), an indirect subsidiary of Bankers
Trust New York Corporation, provides administrative, accounting and transfer
agent services to the Fund. The Fund pays ICC a fee based on the combined
aggregate average daily net
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THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
assets of the Fund and the Glenmede Portfolios, an investment company with the
same officers, Board and service providers as the Fund (collectively, the
"Companies").
This fee is computed daily and paid monthly at the following annual rates:
0.12% of the first $100 million, 0.08% of the next $150 million, 0.04% of the
next $500 million and 0.03% of the amount in excess of $750 million. This fee is
allocated to each portfolio based on its relative net assets.
The Fund pays each Board member, other than Mr. Church, an annual fee of
$8,000 plus $1,250 for each Board meeting attended and each Valuation Committee
meeting attended not held in conjunction with a board meeting and out-of-pocket
expenses incurred in attending Board meetings.
Expenses for the year ended October 31, 1998 include legal fees paid to
Drinker Biddle and Reath LLP. A partner of the law firm is Secretary of the
Fund.
3. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 1998, cost of purchases and proceeds from
sales of investment securities other than U.S. Government securities and
short-term securities were:
Portfolio Purchases Sales
- -------------- -------------- --------------
Tax Managed Equity Portfolio $ 79,133,587 $ 80,787,181
Small Capitalization Equity Portfolio 176,339,109 188,133,889
Large Cap Value Portfolio 95,747,342 102,914,628
International Portfolio 272,893,104 209,169,071
Institutional International Portfolio 31,498,316 17,300,599
Emerging Markets Portfolio 85,109,848 87,742,430
Global Equity Portfolio 35,677,317 11,985,441
For the year ended October 31, 1998, cost of purchases and proceeds from
sales of long-term U.S. Government securities were:
Portfolio Purchases Sales
- -------------- -------------- --------------
Core Fixed Income Portfolio $161,994,282 $191,787,566
On October 31, 1998 aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there was an excess of
tax cost over value were as follows:
Portfolio Appreciation Depreciation
- -------------- ------------ ------------
Core Fixed Income Portfolio $ 10,101,481 $ 1,820,442
Tax Managed Equity Portfolio 46,566,535 770,302
Small Capitalization Equity Portfolio 46,269,605 42,080,589
Large Cap Value Portfolio 7,165,123 3,584,567
International Portfolio 284,764,587 74,374,772
Institutional International Portfolio 23,124,827 5,970,294
Emerging Markets Portfolio 4,500,424 14,388,106
Global Equity Portfolio 2,741,537 2,083,601
97
<PAGE>
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THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
4. COMMON STOCK
The Fund is authorized to issue and has classified 2,500,000,000 shares of
common stock with a $.001 par value. Since the Government Cash Portfolio and the
Tax-Exempt Cash Portfolio have sold shares as reinvestments of dividends and
redeemed shares only at a constant net value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same as
the amounts shown below for such transactions. Changes in the capital shares
outstanding were as follows:
Year Ended 10/31/98 Year Ended 10/31/97
------------------- -------------------
GOVERNMENT CASH PORTFOLIO:
Sold $ 4,934,846,426 $ 3,649,350,962
Issued as reinvestment of dividends 10,445 8,198
Redeemed (4,955,729,324) (3,650,708,344)
--------------- ---------------
Net decrease $ (20,872,453) $ (1,349,184)
=============== ===============
TAX-EXEMPT CASH PORTFOLIO:
Sold $ 1,181,491,843 $ 1,166,721,027
Issued as reinvestment of dividends 4,882 4,632
Redeemed (1,086,514,871) (1,110,775,024)
--------------- ---------------
Net increase $ 94,981,854 $ 55,950,635
=============== ===============
98
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/98 10/31/97
---------------------------- ---------------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
CORE FIXED INCOME PORTFOLIO:
Sold 12,129,104 $ 127,826,843 5,724,183 $ 59,031,638
Issued as reinvestment of dividends 15,980 168,612 6,266 63,870
Redeemed (13,454,160) (141,755,565) (5,439,039) (55,711,022)
------------- ------------- ------------- -------------
Net increase/(decrease) (1,309,076) $ (13,760,110) 291,410 $ 3,384,486
============= ============= ============= =============
TAX MANAGED EQUITY PORTFOLIO:
Sold 1,338,491 $ 28,323,587 1,051,983 $ 20,655,031
Issued as reinvestment of dividends 162,302 3,256,261 729,704 14,732,629
Redeemed (1,111,608) (23,348,073) (405,596) (8,062,262)
------------- ------------- ------------- -------------
Net increase 389,785 $ 8,231,775 1,376,091 $ 27,325,398
============= ============= ============= =============
SMALL CAPITALIZATION EQUITY
PORTFOLIO (ADVISOR SHARES)
Sold 3,276,263 $ 63,183,585 2,520,157 $ 50,324,718
Issued as reinvestment of dividends 168,225 2,539,862 3,193,384 61,159,348
Redeemed (6,111,628) (110,998,305) (2,042,217) (41,415,225)
------------- ------------- ------------- -------------
Net increase/(decrease) (2,667,140) $ (45,274,858) 3,671,324 $ 70,068,841
============= ============= ============= =============
SMALL CAPITALIZATION EQUITY
PORTFOLIO (INSTITUTIONAL SHARES):
Sold 2,525,066 $ 46,591,955 -- $ --
Issued as reinvestment of dividends 32,287 539,447 -- --
Redeemed (483,254) (8,748,975) -- --
------------- ------------- ------------- -------------
Net increase 2,074,099 $ 38,382,427 -- $ --
============= ============= ============= =============
LARGE CAP VALUE PORTFOLIO:
Sold 1,024,056 $ 14,327,914 1,897,771 $ 26,904,146
Issued as reinvestment of dividends 803,373 9,313,621 771,345 10,315,696
Redeemed (1,522,969) (20,983,243) (1,605,371) (23,399,529)
------------- ------------- ------------- -------------
Net increase 304,460 $ 2,658,292 1,063,745 $ 13,820,313
============= ============= ============= =============
INTERNATIONAL PORTFOLIO:
Sold 7,458,914 $ 116,341,225 21,430,219 $ 320,764,119
Issued as reinvestment of dividends 386,308 5,935,778 2,858,245 43,750,000
Redeemed (4,917,999) (75,953,594) (1,126,416) (17,451,520)
------------- ------------- ------------- -------------
Net increase 2,927,223 $ 46,323,409 23,162,048 $ 347,062,599
============= ============= ============= =============
</TABLE>
99
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/98 10/31/97
---------------------------- ---------------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
INSTITUTIONAL INTERNATIONAL PORTFOLIO:
Sold 1,955,404 $ 31,584,734 1,965,611 $ 29,419,375
Issued as reinvestment of dividends 97,949 1,486,097 231,979 3,503,654
Redeemed (1,179,331) (18,459,784) (986,256) (14,764,323)
------------ ------------ ------------ ------------
Net increase 874,022 $ 14,611,047 1,211,334 $ 18,158,706
============ ============ ============ ============
EMERGING MARKETS PORTFOLIO:
Sold 1,481,370 $ 11,768,648 1,349,880 $ 15,409,544
Issued as reinvestment of dividends -- -- 628,699 5,815,463
Redeemed (2,474,198) (18,608,565) (554,567) (6,316,212)
------------ ------------ ------------ ------------
Net increase/(decrease) (992,828) $ (6,839,917) 1,424,012 $ 14,908,795
============ ============ ============ ============
GLOBAL EQUITY PORTFOLIO:
Sold 2,500,000 $ 25,000,000 -- $ --
Issued as reinvestment of dividends 17,766 175,000 -- --
Redeemed -- -- -- --
------------ ------------ ------------ ------------
Net increase 2,517,766 $ 25,175,000 -- $ --
============ ============ ============ ============
</TABLE>
100
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
5. LENDING OF PORTFOLIO SECURITIES
The Government Cash, Tax-Exempt Cash, Core Fixed Income, Tax Managed, Large
Cap Value, Small Capitalization Equity, International, Institutional
International, Global Equity and Emerging Markets Portfolios have the ability to
lend their securities to brokers, dealers and other financial organizations.
Loans of portfolio securities by the Portfolios are collateralized by cash
and/or government securities that are maintained in an amount at least equal to
the current market value of the loaned securities.
The Portfolios generated additional income by lending their securities to
approved brokers. On October 31, 1998, the following Portfolios had outstanding
loans of securities to certain approved brokers for which the Portfolios
received collateral:
<TABLE>
<CAPTION>
Year Ended 10/31/98
---------------------------------------------------
% of
Market Value of Market Value of Total Assets
Portfolio Loaned Securities Collateral on Loan
--------- ----------------- --------------- ------------
<S> <C> <C> <C>
Core Fixed Income Portfolio $ 3,458,249 $ 3,548,120 19.99%(1)
Institutional International
Portfolio 4,300,906 4,619,318 4.68%
International Portfolio 113,018,549 117,817,133 10.38%
Small Capitalization Equity
Portfolio 24,586,438 25,351,400 7.46%
Large Cap Value Portfolio 314,906 313,700 0.47%
Tax Managed Portfolio 552,356 569,600 0.37%
Emerging Markets Portfolio 1,475,307 1,704,500 3.13%
</TABLE>
(1) The Core Fixed Income Portfolio includes reverse repurchase agreements
valued at $60,237,563 at October 31, 1998.
6. CAPITAL LOSS CARRYFORWARD
On October 31, 1998, the following Portfolios had available capital loss
carryforwards to offset future net capital gains through the indicated
expiration dates as follows:
<TABLE>
<CAPTION>
Expiring Expiring Expiring Expiring Expiring Expiring Expiring
Portfolio in 1999 in 2001 in 2002 in 2003 in 2004 in 2005 in 2006
- --------------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Government Cash Portfolio -- $ 127 $ 1,000 $26,819 -- $7,815 --
Tax-Exempt Cash Portfolio $18,922 19,079 8,905 27,815 $13 -- $ 7,168
Core Fixed Income Portfolio -- -- 7,273,798 -- -- -- --
International Portfolio -- -- -- -- -- -- $21,514,083
Institutional International
Portfolio -- -- -- -- -- -- $ 1,919,500
Emerging Markets Portfolio -- -- -- -- -- -- $32,230,980
Global Equity Portfolio -- -- -- -- -- -- $ 403,871
</TABLE>
101
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
7. FOREIGN SECURITIES
The International, Tax Managed Equity, Small Capitalization Equity,
Institutional International, Global Equity and Emerging Markets Portfolios may
invest in foreign securities. Investing in foreign companies and foreign
governments involves special risks and considerations not typically associated
with investing in U.S. companies and the U.S. government. These risks include
evaluation of currencies and future adverse political and economic developments.
Moreover, securities of many foreign companies and foreign governments and their
markets may be less liquid and their prices more volatile than those of
securities of comparable U.S. companies and the U.S. government. This is
particularly true with respect to emerging markets in developing countries.
8. NET ASSETS
On October 31, 1998, net assets consisted of:
<TABLE>
<CAPTION>
Government Tax-Exempt Core Fixed
Cash Cash Income
Portfolio Portfolio Portfolio
---------- ---------- ----------
<S> <C> <C> <C>
Par Value $ 430,129 $ 376,006 $ 24,198
Paid in Capital in excess of par value 429,699,315 375,630,319 256,625,895
Undistributed net investment income 71,402 -- 1,328,849
Accumulated net realized loss on
investments sold, and foreign
currency transactions (35,761) (81,902) (7,273,797)
Net unrealized appreciation
of investments and foreign
currency translation -- -- 8,281,039
------------- ------------- -------------
Total Net Assets $ 430,165,085 $ 375,924,423 $ 258,986,184
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Small Large
Tax Capitalization Cap
Managed Equity Value
Portfolio Portfolio Portfolio
------------ -------------- ------------
<S> <C> <C> <C>
Par Value $ 7,376 $ 22,210 $ 5,659
Paid in Capital in excess of par
value 106,654,863 334,897,296 62,618,308
Undistributed net investment income 116,494 -- 94,330
Accumulated net realized gain/(loss)
on investments sold, and foreign
currency transactions 25,672 281,484 321,486
Net unrealized appreciation
of investments and foreign
currency translation 45,796,233 4,189,016 3,580,556
------------ ------------ ------------
Total Net Assets $152,600,638 $339,390,006 $ 66,620,339
============ ============ ============
</TABLE>
102
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Notes to Financial Statements--(Continued)
<TABLE>
<CAPTION>
Institutional Emerging Global
International International Markets Equity
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Par Value $ 72,471 $ 6,358 $ 9,504 $ 2,518
Paid in Capital in excess of
par value 964,238,200 84,967,195 98,603,946 25,172,482
Distributions in excess of
net investment income (17,627,747) (1,484,486) -- (116,688)
Accumulated net realized
loss on investments
sold, and foreign
currency transactions (21,961,608) (1,923,859) (32,866,615) (407,213)
Net unrealized appreciation/
(depreciation) of
investments and foreign
currency translation 210,470,489 17,161,900 (9,958,232) 659,550
--------------- --------------- --------------- ---------------
Total Net Assets $ 1,135,191,805 $ 98,727,108 $ 55,788,603 $ 25,310,649
=============== =============== =============== ===============
</TABLE>
103
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
The Glenmede Fund, Inc.
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets, and the statement of cash
flows for the Core Fixed Income Portfolio, and the financial highlights present
fairly, in all material respects, the financial position of Government Cash
Portfolio, Tax-Exempt Cash Portfolio, Core Fixed Income Portfolio, Tax Managed
Equity Portfolio, Small Capitalization Equity Portfolio, Large Cap Value
Portfolio, International Portfolio, Institutional International Portfolio,
Emerging Markets Portfolio and Global Equity Portfolio (comprising The Glenmede
Fund, Inc., hereafter referred to as the "Funds") at October 31, 1998, and the
results of each of their operations, the changes in their net assets, the cash
flows of the Core Fixed Income Portfolio, and the financial highlights for each
of the fiscal periods presented, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
December 11, 1998
104
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
Tax Information (Unaudited)
For the Year Ended October 31, 1998
The amount of long-term capital gain paid for the fiscal year ended October
31, 1998 was as follows:
Tax Managed Equity Portfolio $3,246,929
Small Capitalization Equity Portfolio $2,525,611
Large Cap Value Portfolio $8,603,892
Of the ordinary distributions made during the fiscal year ended October 31,
1998, the following percentages have been derived from investments in U.S.
Government and Agency Obligations. All or a portion of the distributions from
this income may be exempt from taxation at the state level. Consult your tax
advisor for state specific information.
Government Cash Portfolio 11%
Core Fixed Income Portfolio 36%
Of the ordinary distributions made during the fiscal year ended October 31,
1998, the following percentages are tax exempt for regular Federal income tax
purposes.
Tax-Exempt Cash Portfolio 100%
Of the ordinary distributions made during the fiscal year ended October 31,
1998, the following percentages qualify for the dividends received deduction
available to corporate shareholders:
Tax Managed Equity Portfolio 96%
Small Capitalization Equity Portfolio 100%
Large Cap Value Portfolio 67%
Global Equity Portfolio 24%
The above figures may differ from those cited elsewhere in this report due
to differences in the calculation of income and gains for Securities and
Exchange Commission (book) purposes and Internal Revenue Service (tax) purposes.
Foreign Taxes Paid or Withheld
Total Per Share
------- ---------
International Portfolio $3,879,248 $0.05
Institutional International Portfolio $ 306,586 $0.05
Emerging Markets Portfolio $ 158,541 $0.02
Global Equity Portfolio $ 58,099 $0.02
The foreign taxes paid or withheld per share represent taxes incurred by
the Fund on interest and dividends received by the Fund from foreign sources.
Foreign taxes paid or withheld should be included in taxable income with an
offsetting deduction from gross income or as a credit for taxes paid to foreign
governments. You should consult your tax advisor regarding the appropriate
treatment of foreign taxes paid.
105
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
STATEMENTS OF OPERATIONS
For the year ended October 31, 1998
Muni New Jersey
Intermediate Muni
Portfolio Portfolio
------------ ------------
Investment Income:
Interest $ 988,235 $ 653,344
---------- ----------
Total investment income 988,235 653,344
---------- ----------
Expenses:
Administration fee 7,047 5,131
Shareholder servicing fee 9,527 7,046
Custodian fee 2,128 913
Legal and audit fees 11,835 9,763
Directors' fees and expenses 3,001 2,118
Pricing fees 12,659 8,789
Registration and filing fees 4,836 1,712
Other expenses 6,645 7,329
---------- ----------
Total expenses 57,678 42,801
---------- ----------
Net investment income 930,557 610,543
---------- ----------
Realized and unrealized gain/(loss) on investments:
Net realized gain/(loss) on investments 32,683 (1,722)
Net change in unrealized appreciation/depreciation
on investments 264,218 318,091
---------- ----------
Net realized and unrealized gain
on investments 296,901 316,369
---------- ----------
Net increase in net assets
resulting from operations $1,227,458 $ 926,912
========== ==========
See Notes to Financial Statements.
106
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended October 31, 1998
<TABLE>
<CAPTION>
Muni New Jersey
Intermediate Muni
Portfolio Portfolio
------------ -----------
<S> <C> <C>
Net investment income $ 930,557 $ 610,543
Net realized gain/(loss) on investments 32,683 (1,722)
Net change in unrealized appreciation/depreciation
on investments 264,218 318,091
----------- -----------
Net increase in net assets resulting from operations 1,227,458 926,912
Distributions to shareholders:
From net investment income (929,525) (594,107)
Net increase in net assets from capital share transactions 457,887 5,042,027
----------- -----------
Net increase in net assets 755,820 5,374,832
NET ASSETS:
Beginning of year 19,219,189 12,116,684
----------- -----------
End of year $19,975,009 $17,491,516
=========== ===========
<CAPTION>
- --------------------------------------------------------------------------------------
For the year ended October 31, 1997
Muni New Jersey
Intermediate Muni
Portfolio Portfolio
----------- -----------
<S> <C> <C>
Net investment income $ 958,950 $ 444,217
Net realized gain/(loss) on investments (42,723) 17,254
Net unrealized appreciation/depreciation
on investments 295,021 224,762
----------- -----------
Net increase in net assets resulting from operations 1,211,248 686,233
Distributions to shareholders:
From net investment income (961,378) (430,888)
Net increase in net assets from capital share transactions 498,259 4,316,199
----------- -----------
Net increase in net assets 748,129 4,571,544
NET ASSETS:
Beginning of year 18,471,060 7,545,140
----------- -----------
End of year $19,219,189 $12,116,684
=========== ===========
</TABLE>
See Notes to Financial Statements.
107
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
FINANCIAL HIGHLIGHTS
For a Share outstanding throughout each year
<TABLE>
<CAPTION>
Muni Intermediate Portfolio
-------------------------------------------------------
Year Ended October 31,
-------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 10.40 $ 10.26 $ 10.32 $ 9.74 $ 10.59
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.51 0.52 0.53 0.53 0.53
Net realized and unrealized
gain/(loss) on investment 0.16 0.14 (0.06) 0.58 (0.85)
------- ------- ------- ------- -------
Total from investment operations 0.67 0.66 0.47 1.11 (0.32)
------- ------- ------- ------- -------
Distributions to shareholder from
net investment income (0.51) (0.52) (0.53) (0.53) (0.53)
------- ------- ------- ------- -------
Net asset value, end of year $ 10.56 $ 10.40 $ 10.26 $ 10.32 $ 9.75
======= ======= ======= ======= =======
Total Return(1) 6.63% 6.69% 4.67% 11.76% (3.13)%
======= ======= ======= ======= =======
Ratios to average net assets/Supplemental
data: Net assets, end of year (in 000's) $19,975 $19,219 $18,471 $18,096 $22,097
======= ======= ======= ======= =======
Ratio of operating expenses to
average net assets 0.30% 0.34% 0.32% 0.28% 0.25%
Ratio of net investment income to
average net assets 4.88% 5.09% 5.16% 5.23% 4.78%
Portfolio turnover rate 11% 21% 44% 28% 11%
</TABLE>
- ----------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
108
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
FINANCIAL HIGHLIGHTS
For a Share outstanding throughout each period
<TABLE>
<CAPTION>
New Jersey Muni Portfolio
---------------------------------------------------------
Period
Year Ended October 31, Ended
------------------------------------------- October 31,
1998 1997 1996 1995 1994(1)
------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.20 $ 9.97 $ 10.00 $ 9.22 $ 10.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.44 0.44 0.44 0.41 0.32
Net realized and unrealized
gain/(loss) on investment 0.23 0.23 (0.03) 0.78 (0.82)
------- ------- ------- ------- -------
Total from investment operations 0.67 0.67 0.41 1.19 (0.50)
------- ------- ------- ------- -------
Distributions to shareholders from
net investment income (0.44) (0.44) (0.44) (0.41) (0.28)
------- ------- ------- ------- -------
Net asset value, end of period $ 10.43 $ 10.20 $ 9.97 $ 10.00 $ 9.22
======= ======= ======= ======= =======
Total Return(2) 6.71% 6.90% 4.24% 13.25% (5.13%)
======= ======= ======= ======= =======
Ratios to average net assets/
Supplemental data: Net assets,
end of year (in 000's) $17,492 $12,117 $ 7,545 $ 5,932 $ 4,564
======= ======= ======= ======= =======
Ratio of operating expenses to
average net assets 0.30% 0.31% 0.24% 0.53% 0.60%(3)
Ratio of net investment income to
average net assets 4.33% 4.42% 4.56% 4.30% 3.60%(3)
Portfolio turnover rate 7% 19% 33% 12% 65%
</TABLE>
- ----------
(1) The Portfolio commenced operations on November 1, 1993.
(2) Total return represents aggregate total return for the period indicated.
(3) Annualized.
See Notes to Financial Statements.
109
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS
October 31, 1998
Face
Amount Value
- -------- --------
MUNICIPAL BONDS -- 98.1%
Pennsylvania -- 98.1%
$150,000 Abington, PA, School District, Series A, General
Obligation Unlimited, (FGIC Insured), Prerefunded
11/15/05 @ 100 5.250% due 05/15/08 $161,596
200,000 Allegheny County, PA , Hospital Development Authority
Revenue, University of Pittsburgh, Health Center,
Series A, (MBIA Insured) 5.300% due 04/01/08 215,350
90,000 Allegheny County, PA , Redevelopment Authority Revenue
5.200% due 08/01/03 92,848
500,000 Allegheny County, PA , Series C, General Obligation
Unlimited, (FGIC Insured) 5.000% due 10/01/05 530,255
175,000 Allegheny County, PA , Series C, General Obligation
Unlimited, (MBIA Insured) 5.875% due 09/15/12 190,585
350,000 Ambridge PA, School District, Series A, General
Obligation, Unlimited, (FGIC Insured) 4.500% due
11/01/06 360,917
120,000 Beaver County, PA, Industrial Development Authority
Pollution Control Revenue, Saint Joe Minerals
Corporation Project 6.000% due 05/01/07 122,868
190,000 Beaver County, PA, Industrial Development Authority
Pollution Control Revenue, Saint Joe Minerals
Corporation Project, (FGIC Insured) 7.100% due 06/01/18 202,926
500,000 Beaver Falls, PA, Municipal Authority Water and
Hydroelectric Revenue, (FGIC Insured) 5.700% due
12/01/08 535,275
100,000 Bethel Park, PA, School District, General Obligation
Unlimited, (FGIC Insured) 5.400% due 08/01/00 101,452
See Notes to Financial Statements.
110
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- -------- --------
MUNICIPAL BONDS -- (Continued)
Pennsylvania -- (Continued)
$100,000 Bucks County, PA, Community College Authority College
Building Revenue, Prerefunded 6/15/02 @ 100 6.050% due
06/15/06 $107,871
40,000 Butler County, PA, Airport Authority Revenue 7.250% due
11/01/99 40,751
100,000 Chambersburg, PA, Area School District, Series B, General
Obligation, Unlimited, (AMBAC Insured) 6.625% due
04/01/09 103,148
325,000 Chester County, PA, General Obligation Unlimited 5.400%
due 12/15/06 345,260
125,000 Dauphin County, PA, General Authority Revenue, Mandatory
Put 6/1/2001 @ 100, (AMBAC Insured) 5.000% due 06/01/26 128,379
130,000 Dauphin County, PA, General Authority Revenue, Mandatory
Put 6/1/2006 @ 100 6.800% due 06/01/26 141,019
100,000 Dauphin County, PA, General Authority Revenue, Mandatory
Put 6/1/2011 @ 100 6.850% due 06/01/26 108,640
390,000 Dauphin County, PA, General Authority Revenue, Mandatory
Put 9/1/2001 @ 100, (AMBAC Insured) 4.450% due 09/01/32 395,795
200,000 Dauphin County, PA, General Obligation Unlimited, (MBIA
Insured) 5.400% due 08/01/06 211,642
125,000 Dauphin County, PA, Series B, General Obligation
Unlimited, (MBIA Insured) 5.200% due 03/15/04 128,589
250,000 Delaware County, PA, Unrefunded Balance, General
Obligation Unlimited 7.250% due 12/01/00 250,815
See Notes to Financial Statements.
111
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- -------- --------
MUNICIPAL BONDS -- (Continued)
Pennsylvania -- (Continued)
$600,000 Delaware River Joint Toll Bridge, Refunding, (FGIC
Insured) 6.150% due 07/01/04 $645,702
Delaware River Port Authority, PA and NJ Delaware River
Bridges Revenue Escrowed to Maturity
245,000 6.000% due 01/15/10 269,336
190,000 6.500% due 01/15/11 215,627
300,000 Downingtown, PA, Area School District, General Obligation
Unlimited 5.500% due 02/01/10 328,740
5,000 Gettysburg, PA, Municipal Authority College Revenue,
Gettysburg College Project, Escrowed to Maturity 5.950%
due 02/15/00 5,156
95,000 Gettysburg, PA, Municipal Authority College Revenue,
Gettysburg College Project, Unrefunded 5.950% due
02/15/00 97,829
100,000 Gettysburg, PA, Municipal Authority County, Guaranteed
Hospital Revenue, Gettysburg Hospital Project, (MBIA
County Guaranteed) 6.200% due 07/01/12 107,291
275,000 Hazleton, PA, Area School District, Series A, General
Obligation Unlimited, Prerefunded 3/1/03 @ 101, (FGIC
Insured) 5.875% due 03/01/10 299,934
100,000 Hempfield, PA, School District, Lancaster School, General
Obligation Unlimited, Escrowed to Maturity, (FGIC
Insured) 6.100% due 08/15/02 108,441
40,000 Lancaster, PA, Area Sewer Authority, Escrowed to Maturity
6.000% due 04/01/12 43,988
170,000 Lancaster, PA, Higher Education Authority College
Revenue, Franklin & Marshall, College Project, (MBIA
Insured) 6.550% due 04/15/07 184,725
See Notes to Financial Statements.
112
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- -------- --------
MUNICIPAL BONDS -- (Continued)
Pennsylvania -- (Continued)
$100,000 Lewistown, PA, Municipal Water Authority, (MBIA
Insured) 4.500% due 01/01/05 $102,101
125,000 Lycoming County, PA, College Revenue, PA College of
Technology, (AMBAC Insured) 5.200% due 11/01/04 131,388
100,000 Montgomery County, PA, Higher Education & Health
Authority Hospital Revenue, Abington Memorial
Hospital, Series A, (AMBAC Insured) 5.800% due
06/01/04 108,771
110,000 Montgomery County, PA, Industrial Development Authority
Revenue 7.500% due 01/01/12 116,392
100,000 New Kensington, PA, General Obligation Unlimited, (FGIC
Insured) 5.625% due 10/01/04 101,594
200,000 North East, PA, School District, Refunding, (AMBAC
Insured) 6.000% due 09/15/10 214,186
150,000 North Pocono, PA, School District, General Obligation
Unlimited, (FGIC Insured) 5.250% due 07/15/06 154,602
425,000 Northampton County, PA, Higher Education Authority
Revenue - Lehigh University 5.250% due 11/15/09 460,186
410,000 Northampton County, PA, Industrial Development
Authority, Revenue, Optional Put 8/1/07 @ 100 4.750%
due 08/01/15 418,512
275,000 Penn Trafford, PA, School District, General Obligation
Unlimited, Prerefunded 4/1/00 @ 100, (MBIA Insured)
6.500% due 04/01/06 286,630
200,000 Pennridge, PA, School District, Series A, General
Obligation Unlimited, (AMBAC Insured) 6.250% due
02/15/04 214,406
See Notes to Financial Statements.
113
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- -------- --------
MUNICIPAL BONDS -- (Continued)
Pennsylvania -- (Continued)
$500,000 Pennsylvania Housing Finance Agency, Refunding, Rental
Housing 5.450% due 07/01/06 $524,080
350,000 Pennsylvania Housing Finance Agency, Refunding, Rental
Housing 5.250% due 07/01/04 364,227
330,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, Series 38 5.500% due 04/01/0 344,843
Pennsylvania Housing Finance Agency, Single Family
Mortgage, Series S, (FHA Insured)
100,000 7.150% due 10/01/01 103,450
125,000 7.600% due 04/01/16 130,244
500,000 Pennsylvania Infrastructure Investment Authority
Revenue - Remarket 5/3/93-A, Prerefunded 9/1/03 @ 102
5.900% due 09/01/10 553,755
300,000 Pennsylvania Intergovernmental Coop Authority, Special
Tax Revenue, City of Philadelphia Funding Program,
Escrowed to Maturity, (FGIC Insured) 6.000% due
06/15/02 319,323
200,000 Pennsylvania Intergovernmental Coop Authority, Special
Tax Revenue, City of Philadelphia Funding Program,
(FGIC Insured) 5.250% due 06/15/06 209,934
1,000,000 Pennsylvania State Finance Authority Revenue,
Refunding, Municipal Capital Improvements Program
6.600% due 11/01/09 1,118,370
205,000 Pennsylvania State Higher Educational Facilities
Authority College and University Revenues, Drexel
University Project, (MBIA Insured) 4.550% due
05/01/07 210,824
See Notes to Financial Statements.
114
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- -------- --------
MUNICIPAL BONDS -- (Continued)
Pennsylvania -- (Continued)
$140,000 Pennsylvania State Higher Educational Facilities
Authority College and University Revenues, Drexel
University Project, Prerefunded 8/1/01 @ 100 5.650%
due 02/01/09 $147,251
220,000 Pennsylvania State Higher Educational Facilities
Authority College and University Revenues, College of
Pharmacy, (MBIA Insured) 5.250% due 11/01/09 232,848
100,000 Pennsylvania State Higher Educational Facilities
Authority College and University Revenues,
Prerefunded 12/15/02 @ 100, (AMBAC Insured) 6.000%
due 12/15/09 108,723
250,000 Pennsylvania State Higher Educational Facilities
Authority College and University Revenues, University
of Pennsylvania 5.600% due 09/01/10 268,782
275,000 Pennsylvania State University, College and University
Revenues 5.200% due 08/15/02 289,055
150,000 Pennsylvania State, First Series, General Obligation
Unlimited, (AMBAC Insured) 5.000% due 04/15/09 156,264
250,000 Pennsylvania State, First Series, General Obligation
Unlimited 6.375% due 09/15/12 272,335
375,000 Pennsylvania State, Third Series, General Obligation
Unlimited 5.000% due 09/01/08 392,756
25,000 Perkiomen Valley School Authority, PA, School Revenue,
Escrowed to Maturity, (MBIA Insured) 6.400% due
12/01/02 25,469
225,000 Philadelphia, PA Municipal Authority Revenue, Refunding
- Lease - Series C, (FGIC Insured) 5.000% due
04/01/07 237,321
100,000 Philadelphia, PA, Gas Works Revenue, (FSA Insured)
5.500% due 07/01/04 107,588
See Notes to Financial Statements.
115
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- -------- --------
MUNICIPAL BONDS -- (Continued)
Pennsylvania -- (Continued)
$320,000 Philadelphia, PA, Hospital Revenue, Escrowed to
Maturity, (FGIC Insured) 5.875% due 07/01/08 $324,285
100,000 Philadelphia, PA, Hospitals and Higher Educational
Facilities Authority, Hospital Revenue, Children's
Hospital Philadelphia, Series A 5.000% due 02/15/02 103,737
Pittsburgh, PA, Urban Redevelopment Authority Mortgage
Revenue, Series D
260,000 5.750% due 10/01/07 277,350
150,000 6.200% due 04/01/11 161,052
155,000 6.200% due 10/01/11 166,420
235,000 Ringgold, PA, School District, Escrowed to Maturity
6.200% due 01/15/13 269,235
250,000 Sayre, PA, Health Care Facilities Authority Revenue,
(AMBAC Insured) 6.100% due 07/01/02 269,328
Seneca Valley, PA, School District, Series B, General
Obligation Unlimited, (FGIC Insured)
100,000 5.700% due 07/01/06 106,093
225,000 5.800% due 07/01/10 239,472
40,000 Southeastern Pennsylvania Transportation Authority, PA,
Lease Revenue 5.750% due 12/01/04 40,071
125,000 Southeastern Pennsylvania Transportation Authority, PA,
Special Revenue, (FGIC Insured) 5.050% due 03/01/05 132,204
Southeastern Pennsylvania Transportation Authority,
Revenue
110,000 6.000% due 06/01/00 114,260
285,000 6.000% due 06/01/01 301,447
250,000 State Public School Building Authority, PA, School
Revenue, Hazleton Area School District, (FGIC
Insured) 6.500% due 03/01/08 264,978
See Notes to Financial Statements.
116
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS -- (Continued)
October 31, 1998
Face
Amount Value
- -------- --------
MUNICIPAL BONDS -- (Continued)
Pennsylvania -- (Continued)
$ 15,000 Swarthmore Borough, PA, College Revenue, Prerefunded
9/15/02 @ 102 6.100% due 09/15/07 $ 16,551
85,000 Swarthmore Borough, PA, College Revenue, Unrefunded
6.100% due 09/15/07 93,112
120,000 Swatara Township Authority, PA, Sewer Revenue, Escrowed
to Maturity, (MBIA Insured) 6.150% due 05/01/07 137,603
125,000 Unionville-Chadds Ford, PA, School District, General
Obligation Unlimited, Prerefunded 6/1/03 @ 100,
(State Aid Withholding) 5.500% due 06/01/08 133,754
125,000 Wallingford - Swarthmore, PA, School District, Series
C, (FSA State Aid Withholding) 5.000% due 05/15/09 131,198
325,000 Wayne County, PA, Hospital and Health Facilities
Authority, County Guaranteed, Hospital Revenue, Wayne
Memorial Hospital Project, (MBIA Insured) 5.050% due
07/01/03 340,516
240,000 Westmoreland County, PA, Municipal Authority, Municipal
Services Revenue, Series P, Escrowed to Maturity,
(MBIA Insured) 5.800% due 07/01/01 253,373
200,000 Wilkes Barre, PA, School District, General Obligation
Unlimited, (FGIC Insured) 4.750% due 04/01/08 207,440
100,000 Wilkinsburg, PA, Joint Water Authority, Water Revenue,
Series A, Prerefunded 8/15/02 @ 100, (AMBAC Insured)
6.100% due 08/15/04 108,441
20,000 William Penn, PA, School District, General Obligation
Unlimited, Escrowed to Maturity, (State Aid
Withholding) 8.000% due 08/01/00 20,751
See Notes to Financial Statements.
117
<PAGE>
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Muni Intermediate Portfolio
STATEMENT OF NET ASSETS -- (Concluded)
October 31, 1998
<TABLE>
<CAPTION>
Face
Amount Value
- -------- -----------
<S> <C> <C>
MUNICIPAL BONDS -- (Continued)
Pennsylvania -- (Continued)
$170,000 York County, PA, Industrial Development Authority,
Industrial Development Revenue, Refunding, Stanley
Works Project 6.250% due 07/01/02 $ 183,525
-----------
TOTAL INVESTMENTS (Cost $18,820,689)1 98.1% $19,605,156
OTHER ASSETS IN EXCESS OF LIABILITIES 1.9% 369,853
----- -----------
NET ASSETS 100.0% $19,975,009
===== ===========
NET ASSET VALUE ($19,975,009 divided by 1,891,093
shares outstanding) $ 10.56
===========
</TABLE>
- ----------
(1) Aggregate cost for federal tax purposes was $18,820,986.
INSURANCE ABBREVIATIONS:
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance Inc.
MBIA -- Municipal Bond Investors Assurance
See Notes to Financial Statements.
118
<PAGE>
THE GLENMEDE Portfolios
New Jersey Muni Portfolio
PORTFOLIO OF INVESTMENTS
October 31, 1998
Face
Amount Value
- ------- -----
Municipal Bonds -- 97.3%
$100,000 Asbury Park, NJ, Board of Education, General Obligation
Unlimited, (MBIA Insured) 5.550% due 02/01/07 $110,059
100,000 Beach Haven, NJ, General Obligation Unlimited, (MBIA
Insured) 5.700% due 08/15/03 108,702
70,000 Belvidere, NJ, General Obligation Unlimited, (AMBAC
Insured) 4.500% due 12/01/00 71,667
Burlington County, NJ, General Obligation Unlimited
100,000 5.200% due 09/15/02 105,401
100,000 5.200% due 10/01/04 105,576
500,000 4.850% due 07/15/06 524,415
50,000 4.850% due 07/15/09 51,845
150,000 Cape May County, NJ, General Improvements, General
Obligation Unlimited, (AMBAC Insured) 5.350% due
08/01/04 161,422
200,000 Cape May County, NJ, Municipal Utilities Authority, Sewer
Revenue, Refunding, (AMBAC Insured) 5.600% due 01/01/05 215,798
100,000 Casino Reinvestment Development Authority, NJ, Parking Fee
Revenue, Series A, (FSA Insured) 5.000% due 10/01/04 105,599
100,000 Delaware River Joint Toll Bridge, Commonwealth of
Pennsylvania Bridge Revenue, Refunding, (FGIC Insured)
6.150% due 07/01/04 107,617
200,000 Delaware River Joint Toll Bridge, Commonwealth of
Pennsylvania Bridge Revenue, Refunding, (FGIC Insured)
6.250% due 07/01/12 215,628
Delaware River Port Authority, PA, NJ, and DE River Bridges
Revenue, Escrowed to Maturity
315,000 5.625% due 01/15/09 336,215
275,000 6.000% due 01/15/10 302,316
100,000 6.500% due 01/15/11 113,488
150,000 Glassboro, NJ, School District, General Obligation
Unlimited, (FSA Insured) 4.550% due 02/01/03 155,254
See Notes to Financial Statements.
119
<PAGE>
THE GLENMEDE Portfolios
New Jersey Muni Portfolio
PORTFOLIO OF INVESTMENTS -- (Continued)
October 31, 1998
Face
Amount Value
- ------- -----
Municipal Bonds -- (Continued)
$100,000 Gloucester County, NJ, Improvement Authority Revenue,
County Library Lease Project 5.200% due 12/15/05 $106,635
200,000 Hasbrouck Heights, NJ, General Improvements, General
Obligation Unlimited 5.250% due 09/01/04 214,608
110,000 High Bridge, NJ, Regional Board of Education, General
Obligation Unlimited, (FSA Insured) 5.400% due 02/15/09 117,726
250,000 Hudson County, NJ, Certificates of Participation,
Refunding - Correctional Facilities, (MBIA Insured)
6.200% due 06/01/03 272,440
200,000 Hunterdon, NJ, Central Regional High School District,
General Obligation Unlimited, (FSA Insured) 5.250% due
05/01/06 215,932
130,000 Jefferson Township, NJ, General Obligation Unlimited,
Sewer Improvements, (AMBAC Insured) 5.450% due 10/01/09 138,410
250,000 Jersey City, NJ, Municipal Utility Authority Sewer
Revenue, (FSA Insured)1 4.000% due 12/01/06 249,480
200,000 Jersey City, NJ, Municipal Utilities Authority Water
Revenue, (FSA Insured) 4.750% due 04/01/04 207,930
250,000 Jersey City, NJ, School Improvements, General Obligation
Unlimited, (MBIA Insured) 5.500% due 03/15/06 272,900
100,000 Lyndhurst Township, NJ, General Improvements, General
Obligation Unlimited, (FGIC Insured) 5.500% due 10/01/05 108,468
105,000 Manalapan-Englishtown, NJ, Regional Board of Education,
General Obligation Unlimited, (School Board Residual
Fund Insured) 5.000% due 05/01/07 112,037
See Notes to Financial Statements.
120
<PAGE>
THE GLENMEDE Portfolios
New Jersey Muni Portfolio
PORTFOLIO OF INVESTMENTS -- (Continued)
October 31, 1998
Face
Amount Value
- ------- -----
Municipal Bonds -- (Continued)
$125,000 Manchester Township, NJ, Board of Education Certificates
of Participation, Refunding, (MBIA Insured) 4.700% due
12/15/02 $130,086
150,000 Mercer County, NJ, Improvement Authority Revenue,
Refunding - Government Leasing, (County Guaranteed - A)
5.400% due 12/01/05 161,301
100,000 Mercer County, NJ, Improvement Authority Revenue,
Refunding - Solid Waste, (County Guaranteed - Series 97)
5.200% due 09/15/08 107,759
100,000 Middletown Township, NJ, General Obligation Unlimited
5.000% due 08/01/05 106,043
100,000 Middletown Township, NJ, Sewer Authority, Sewer Revenue,
Refunding - Series A, (FGIC Insured) 4.650% due 01/01/02 102,993
500,000 Monmouth County, NJ, Senior Lien - Series A 4.500% due
08/01/04 516,860
50,000 Monmouth County, NJ, Senior Lien - Series A, General
Obligation Unlimited 4.500% due 08/01/08 51,510
100,000 Montclair, NJ, Refunding, General Obligation Unlimited
4.300% due 01/01/03 102,046
Moorestown Township, NJ,
General Obligation Unlimited, (MBIA Insured)
50,000 4.000% due 09/01/00 50,641
50,000 4.000% due 09/01/01 50,789
200,000 Morris Township, NJ, School District, General Obligation
Unlimited 5.625% due 04/01/06 219,418
125,000 New Jersey Economic Development Authority, Market
Transition Facilities Revenue, Senior Lien -- Series A,
(MBIA Insured) 5.750% due 07/01/06 137,719
250,000 New Jersey Economic Development Authority, Burlington Coat
Factory, Refunding 5.600% due 09/01/05 271,835
See Notes to Financial Statements.
121
<PAGE>
THE GLENMEDE Portfolios
New Jersey Muni Portfolio
PORTFOLIO OF INVESTMENTS -- (Continued)
October 31, 1998
Face
Amount Value
- ------- -----
Municipal Bonds -- (Continued)
$ 75,000 New Jersey Economic Development Authority, RWJ Health Care
Corp, Refunding, (FSA Insured) 5.000% due 07/01/99 $ 76,048
200,000 New Jersey Economic Development Authority, Market
Transition Facilities Revenue, Senior Lien -- Series A,
(MBIA Insured) 5.125% due 07/01/00 205,446
200,000 New Jersey Economic Development Authority, Market
Transition Facilities, Senior Lien - Series A, (MBIA
Insured) 5.700% due 07/01/05 219,842
100,000 New Jersey Economic Development Authority, Parking
Facility Improvements, Elizabeth Development Project,
(FGIC Insured) 5.200% due 10/15/08 108,068
100,000 New Jersey Building Authority Revenue, Refunding, General
Improvement 4.500% due 06/15/04 102,898
200,000 New Jersey Enviromental Infrastructure, Sewer Improvements
4.250% due 09/01/07(1) 203,086
100,000 New Jersey Health Care Facilities Finance Authority
Revenue, St Joseph's Hospital, Refunding 5.000% due
07/01/03 104,736
400,000 New Jersey Health Care Facilities Finance Authority
Revenue, Allegany Health, (MBIA Insured), Escrowed to
Maturity 4.800% due 07/01/05 418,740
75,000 New Jersey Health Care Facilities Finance Authority
Revenue, Refunding, Mountainside Hospital, (MBIA
Insured) 4.600% due 07/01/00 76,384
200,000 New Jersey Health Care Facilities Finance Authority
Revenue, Kennedy Health System Series A, (MBIA Insured)
5.000% due 07/01/09 211,266
350,000 New Jersey State Educational Facilities Authority Revenue,
Higher Education Facilities Trust Fund - Series A,
(AMBAC Insured) 5.125% due 09/01/07 376,617
See Notes to Financial Statements.
122
<PAGE>
THE GLENMEDE Portfolios
New Jersey Muni Portfolio
PORTFOLIO OF INVESTMENTS -- (Continued)
October 31, 1998
Face
Amount Value
- ------- -----
Municipal Bonds -- (Continued)
$125,000 New Jersey State Educational Facilities Authority Revenue,
Higher Education Equipment Leasing Fund -- Series A,
(MBIA Insured) 5.000% due 09/01/00 $128,429
New Jersey State Educational Facilities Authority Revenue,
Higher Education Facilities Trust Fund --
Series A, (AMBAC Insured)
100,000 5.120% due 09/01/02 105,084
125,000 5.120% due 09/01/08 133,455
175,000 New Jersey State Educational Facilities Authority Revenue,
Kean University -- Series A, (AMBAC Insured) 4.000% due
07/01/02 177,079
225,000 New Jersey State Educational Facilities Authority Revenue,
Princeton University -- Series A 5.500% due 07/01/05 243,020
200,000 New Jersey State Educational Facilities Authority Revenue,
Higher Education Technology -- Series A 4.400% due
09/01/06 205,300
100,000 New Jersey State Educational Facilities Authority Revenue,
Refunding -- Ramapo College -- Series E, (MBIA Insued)
4.800% due 07/01/01 102,998
250,000 New Jersey State Highway Authority Garden State Parkway
General Revenue, Highway Revenue Tolls 6.100% due
01/01/06 270,970
250,000 New Jersey State Highway Authority Garden State Parkway
General Revenue, Highway Revenue Tolls, (AMBAC Insured)
6.150% due 01/01/07 271,340
50,000 New Jersey State Housing Finance Agency Revenue,
Refunding, (HUD Section 236) 5.650% due 11/01/00 50,074
150,000 New Jersey State Housing and Mortgage Finance Agency
Revenue, Home Buyer -- Series P, (MBIA Insured) 5.050%
due 04/01/07 157,191
See Notes to Financial Statements.
123
<PAGE>
THE GLENMEDE Portfolios
New Jersey Muni Portfolio
PORTFOLIO OF INVESTMENTS -- (Continued)
October 31, 1998
Face
Amount Value
- ------- -----
Municipal Bonds -- (Continued)
$200,000 New Jersey State Housing and Mortgage Finance Agency
Revenue, Local or Guaranteed Housing -- Series A, (HUD
Section 8) 6.500% due 11/01/03 $214,700
New Jersey State Transportation Trust Fund Authority,
Transportation System - Series A, Escrowed to
Maturity, (FSA Insured)
150,000 5.300% due 12/15/01 157,431
100,000 4.750% due 06/15/03 104,077
165,000 New Jersey State Transportation Trust Fund Authority,
Transportation System - Series A, (MBIA Insured) 4.750%
due 12/15/07 173,217
200,000 New Jersey State Transportation Trust Fund Authority,
Transportation System - Series B, (MBIA Insured) 5.000%
due 06/15/04 211,110
250,000 New Jersey State Turnpike Authority, Turnpike Revenue,
Series A, (MBIA Insured) 5.900% due 01/01/04 268,947
250,000 New Jersey State, General Obligation Unlimited, Refunding
- Series C 6.500% due 01/15/03 254,157
100,000 New Jersey State, General Obligation Unlimited, Refunding
- Series D 5.100% due 02/15/00 102,196
5,000 New Jersey Wastewater Treatment Trust - Unrefunded - Series
A 6.000% due 07/01/09 5,371
140,000 New Jersey Wastewater Treatment Trust -Series A,
Prerefunded 7/1/01 @ 102 6.000% due 07/01/09 150,979
125,000 New Jersey Wastewater Treatment Trust - Refunding --
Series C, (MBIA Insured) 6.250% due 05/15/03 137,909
250,000 Ocean County, NJ, General Obligation Unlimited 4.875% due
12/15/09(2) 263,603
See Notes to Financial Statements.
124
<PAGE>
THE GLENMEDE Portfolios
New Jersey Muni Portfolio
PORTFOLIO OF INVESTMENTS -- (Continued)
October 31, 1998
Face
Amount Value
- ------- -----
MUNICIPAL BONDS -- (Continued)
$100,000 Ocean County, NJ, General Improvement, General Obligation
Unlimited, Prerefunded 7/1/04 @ 102 5.650% due 07/01/06 $109,995
85,000 Ocean County, NJ, Utility Authority, Wastewater Revenue,
Refunding 5.000% due 01/01/05 89,745
250,000 Ocean Township, NJ, Sewer Authority, Revenue Bonds -
Series B, (FGIC Insured) 6.000% due 12/01/07 274,133
200,000 Park Ridge, NJ, General Obligation Unlimited 5.600% due
11/01/03 217,210
100,000 Passaic County, NJ, General Obligation Unlimited,
Refunding, (MBIA Insured) 4.625% due 09/01/09 102,539
100,000 Passaic Valley, NJ, General Obligation Unlimited, (FGIC
Insured) 5.125% due 09/01/08(2) 105,523
270,000 Passaic Valley, NJ, General Obligation Unlimited, (FSA
Insured) 5.000% due 11/15/04(2) 285,250
100,000 Passaic Valley, NJ, Sewer Commission, Sewer System --
Series D, (AMBAC Insured) 5.750% due 12/01/09 108,519
200,000 Pemberton Twp, NJ, Refunding, General Obligation
Unlimited, (AMBAC Insured) 4.550% due 09/15/01 205,898
130,000 Perth Amboy, NJ, General Obligation Unlimited, (MBIA
Insured), Prerefunded 3/1/04 @ 102 6.200% due 08/01/06 147,347
60,000 Pleasantville, NJ, Sewer Utility, (MBIA Insured) 7.875%
due 10/15/00 60,226
300,000 Rutgers State University, NJ, Refunding - Series S 5.250%
due 05/01/07 316,017
South Brunswick Township, NJ, General Obligation
Unlimited, (MBIA Insured)
135,000 5.250% due 10/01/03 143,953
130,000 5.350% due 04/01/06 136,646
See Notes to Financial Statements.
125
<PAGE>
THE GLENMEDE Portfolios
New Jersey Muni Portfolio
PORTFOLIO OF INVESTMENTS -- (Concluded)
October 31, 1998
Face
Amount Value
- ------- -----
MUNICIPAL BONDS -- (Concluded)
$250,000 Southern Regional High School District, General Obligation
Unlimited, (MBIA Insured) 5.400% due 09/01/04 $ 269,933
160,000 Sparta Township, NJ, School District, General Obligation
Unlimited, (MBIA Insured) 5.750% due 09/01/04 175,658
100,000 Surf City, NJ, General Obligation Unlimited, (MBIA
Insured) 5.150% due 01/15/06 106,409
85,000 Tewksbury Twp, NJ, Board of Education, General Obligation
Unlimited, (FSA Insured) 5.000% due 01/15/02 88,624
150,000 Vineland, NJ, General Improvement, General Obligation
Unlimited, (FGIC Insured) 4.700% due 03/01/01 153,861
100,000 West Orange, NJ, General Obligation Unlimited 5.100% due
01/01/05 106,012
West Windsor Township, NJ, General Obligation
Unlimited, Refunding
280,000 4.000% due 07/15/06 279,801
250,000 4.500% due 07/15/07 257,618
350,000 Western Monmouth Utilities Authority, NJ, Revenue, Series
A, (AMBAC Insured) 5.250% due 02/01/09 374,378
100,000 Woodbridge Township, NJ, General Obligation Unlimited,
Refunding, (FGIC Insured)(1) 4.000% due 08/15/06 99,995
---------
TOTAL INVESTMENTS (Cost $16,385,923)(3) 97.3% $ 17,023,626
OTHER ASSETS IN EXCESS OF LIABILITIES 2.7 467,890
----- ------------
NET ASSETS 100.0% $ 17,491,516
===== ============
- --------------------
(1) When issued security.
(2) Security segregated as collateral for when issued security.
(3) Aggregate cost for federal tax purposes was $16,386,484.
Insurance Abbreviations:
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance Inc.
MBIA --- Municipal Bond Investors Assurance
THE GLENMEDE PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES
See Notes to Financial Statements.
126
<PAGE>
THE GLENMEDE Portfolios
STATEMENT OF ASSETS AND LIABILITIES
For the year ended October 31, 1998
New Jersey
Municipal
Portfolio
----------
Assets:
Investments, at value (Cost $16,385,923) $17,023,626
Cash 797,957
Dividends and/or interest receivable 234,698
Prepaid expenses 308
-----------
Total Assets 18,056,589
-----------
Liabilities:
Payable for investment securities purchased 550,363
Administration fee payable 446
Accrued expenses and other payables 14,264
-----------
Total Liabilities 565,073
-----------
Net Assets $17,491,516
-----------
Net Assets consist of:
Par value $ 1,677
Paid-in capital in excess of par value 16,885,150
Undistributed net investment income 59,231
Accumulated net realized (loss) on investments (92,245)
Net unrealized appreciation of investments 637,703
-----------
Total Net Assets $17,491,516
===========
Net Asset Value, Offering and Redemption Price Per Share of
Beneficial Interest Outstanding ($17,491,516 divided by
1,677,398 shares outstanding) $ 10.43
===========
See Notes to Financial Statements.
127
<PAGE>
THE GLENMEDE Portfolios
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
The Glenmede Portfolios (the "Fund") is an investment company that was
organized as a Massachusetts business trust on march 3, 1992 and is registered
with the Securities and Exchange Commission under the investment company act of
1940 as an open-end management investment company. as of october 31, 1998, the
fund offered shares of two Subtrusts, the Muni Intermediate Portfolio and the
New Jersey Muni Portfolio (collectively, the "Portfolios"). the following is a
summary of significant accounting policies consistently followed by each
Portfolio in the preparation of its financial statements.
PORTFOLIO VALUATION: Municipal obligations for which market quotations are
readily available are valued at the most recent quoted bid price provided by
investment dealers. Municipal obligations may be valued on the basis of prices
provided by a pricing service when such prices are determined by the Advisor to
reflect the fair market value of such municipal obligations; securities for
which market quotations are not readily available are valued at fair value as
determined in good faith by or under the direction of the Board of Trustees.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded as of the trade date. realized gains and losses on investments sold are
computed on the basis of identified cost. Interest income is recorded on the
accrual basis and includes the amortization of premiums and accretion of
discounts when appropriate.
Securities purchased or sold on a when-issued or delayed-delivery basis may
be settled a month or more after the trade date. interest income is not earned
or accrued until settlement date. the portfolio instructs the custodian to
segregate assets in a separate account with a current value at least equal to
the amount of its when-issued purchased commitments. When-issued purchase
committments involve a risk of loss if the value of the security to be purchased
declines prior to settlement date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment
income, if any, are declared and paid monthly. The Portfolios distribute any net
realized capital gains on an annual basis. Additional distributions of net
investment income and capital gains for each Portfolio may be made at the
discretion of the Board of Directors in order to avoid the 4% nondeductible
Federal excise tax. Income distributions and capital gains distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of income and gains of various investment securities held
by each Portfolio, timing differences and differing characterization of
distributions made by each Portfolio.
128
<PAGE>
THE GLENMEDE Portfolios
Notes to Financial Statements -- (Continued)
FEDERAL INCOME TAXES: Each Portfolio intends to qualify as a regulated
investment company by complying with the requirements of the Internal Revenue
Code applicable to regulated investment companies and by distributing
substantially all of its tax-exempt (and taxable, if any) income to its
shareholders. Therefore, no Federal income tax provision is required. The
portfolios may periodically make reclassifications among certain of its capital
accounts as a result of differences in the characterization and allocation of
certain income and capital gains determined annually in accordance with federal
tax regulations which may differ from generally accepted accounting principles.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER RELATED PARTY
TRANSACTIONS
The Glenmede Trust Company (the "Advisor") provides investment advisory
services to the Fund. The Advisor does not receive a fee from the Portfolios for
its investment advisory services. However, each Portfolio pays The Glenmede
Trust Company a shareholder servicing fee at the annual rate of 0.05% of the
value of its average daily net assets.
Investment Company Capital Corp. ("ICC"), an indirect subsidiary of Bankers
Trust Corporation, provides administrative, accounting and transfer agent
services to the Fund. The Fund pays ICC a fee based on the combined aggregate
average daily net assets of the Fund and The Glenmede Fund, Inc., an investment
company with the same officers, Board and service providers as the Fund
(collectively, the "Companies"). This fee is computed daily and paid monthly at
the following annual rates: 0.12% of the first $100 million, 0.08% of the next
$150 million, 0.04% of the next $500 million and 0.03% of the amount in excess
of $750 million. This fee is allocated to each Portfolio based on its relative
net assets.
The Fund pays each Board member, other than Mr. Church, an annual fee of
$1,000 and out-of-pocket expenses incurred in attending Board meetings.
3. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 1998, cost of purchases and proceeds from
sales of investment securities other than U.S. Government securities and
short-term securities were:
Portfolio Purchases Sales
- --------- --------- -----
Muni Intermediate Portfolio $4,028,365 $ 3,559,394
New Jersey Muni Portfolio 6,879,587 1,882,982
129
<PAGE>
THE GLENMEDE Portfolios
Notes to Financial Statements -- (Continued)
On October 31, 1998, aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there was an excess of
tax cost over value were as follows:
Portfolio Appreciation Depreciation
- --------- ------------ ------------
Muni Intermediate Portfolio $795,623 $11,156
New Jersey Muni Portfolio 643,014 5,311
4. SHARES OF BENEFICIAL INTEREST
The Fund may issue an unlimited number of shares of beneficial interest
with a $.001 par value. Changes in shares of beneficial interest outstanding
were as follows:
Year Ended Year Ended
10/31/98 10/31/97
--------------------- --------------------
Shares Amount Shares Amount
------ ------ ------ ------
MUNI INTERMEDIATE PORTFOLIO:
Sold 349,623 $ 3,657,100 440,883 $ 4,529,900
Redeemed (306,643) (3,199,213) (392,272) (4,031,641)
-------- ----------- -------- -----------
Net increase 42,980 $ 457,887 48,611 $ 498,259
======== =========== ======== ===========
NEW JERSEY MUNI PORTFOLIO:
Sold 711,528 $ 7,319,600 576,081 $ 5,766,400
Redeemed (221,997) (2,277,573) (144,674) (1,450,201)
-------- ----------- -------- -----------
Net increase 489,531 $ 5,042,027 431,407 $ 4,316,199
======== =========== ======== ===========
5. CAPITAL LOSS CARRYFORWARD
On October 31, 1998, the following Portfolios had available capital loss
carryforwards to offset future net capital gains through the indicated
expiration dates as follows:
<TABLE>
<CAPTION>
Expiring Expiring Expiring Expiring Expiring
Portfolio in 2002 in 2003 in 2004 in 2005 in 2006
- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C>
Muni Intermediate Portfolio $188,697 $549,436 $ 2,107 $42,723 --
New Jersey Muni Portfolio 56,594 21,708 11,660 -- 1,721
</TABLE>
6. CONCENTRATION OF CREDIT
The Muni Intermediate Portfolio and New Jersey Muni Portfolio primarily
invest in debt obligations issued by the Commonwealth of Pennsylvania and the
State of New Jersey, respectively, and their political subdivisions, agencies
and public authorities to obtain funds for various purposes. Each Portfolio is
more susceptible to factors adversely affecting issuers of the respective region
that the Portfolio invests in than is a municipal bond fund that is not
130
<PAGE>
THE GLENMEDE Portfolios
Notes to Financial Statements -- (Concluded)
concentrated in these issuers to the same extent. As of October 31, 1998, the
Muni Intermediate Portfolio maintained all of its investments in debt
obligations issued by the Commonwealth of Pennsylvania and its political
subdivisions and the New Jersey Muni Portfolio maintained a majority of its
investments in debt obligations issued by the State of New Jersey and its
political subdivisions.
7. NET ASSETS
On October 31, 1998, net assets consisted of:
<TABLE>
<CAPTION>
Muni New Jersey
Intermediate Muni
Portfolio Portfolio
------------ ----------
<S> <C> <C>
Par Value $ 1,891 $ 1,677
Paid in Capital in excess of par value 19,890,381 16,885,150
Undistributed net investment income 81,531 59,231
Accumulated net realized loss on investments (783,261) (92,245)
Net unrealized appreciation or depreciation of
investments 784,467 637,703
------------ ------------
Total Net Assets $ 19,975,009 $ 17,491,516
============ ============
</TABLE>
131
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
The Glenmede Portfolios:
In our opinion, the accompanying statement of net assets and statement of assets
and liabilities, including the portfolio of investments, and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Muni Intermediate Portfolio and New Jersey Muni Portfolio (comprising The
Glenmede Portfolios, hereafter referred to as the "Portfolios") at October 31,
1998, and the results of each of their operations, the changes in each of their
net assets, and the financial highlights for each of the fiscal periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Portfolios' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 1998 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
December 11, 1998
- --------------------------------------------------------------------------------
-----------------------
THE GLENMEDE PORTFOLIOS
-----------------------
Tax Information (Unaudited)
for the Year Ended October 31, 1998
Of the dividends paid by the Muni Intermediate Portfolio from net
investment income for the year ended October 31, 1998, 100% is tax-exempt for
regular Federal income taxes and Pennsylvania taxes.
Of the dividends paid by the New Jersey Muni Portfolio from net investment
income for the year ended October 31, 1998, 100% is tax-exempt for regular
Federal income taxes and New Jersey taxes.
132
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<PAGE>
The Glenmede Fund, Inc. and The Glenmede Portfolios
Officers and Directors/Trustees
John W. Church, Jr.
Chairman,
Director/Trustee
H. Franklin Allen, Ph.D.
Director/Trustee
Willard S. Boothby, Jr.
Director/Trustee
Frank J. Palamara
Director/Trustee
G. Thompson Pew, Jr.
Director/Trustee
Mary Ann B. Wirts
President
Kimberly C. Osborne
Executive Vice President
Michael P. Malloy
Secretary
Joseph A. Finelli
Treasurer
Edward J. Veilleux
Assistant Secretary
INVESTMENT ADVISOR
The Glenmede Trust Company
One Liberty Place
1650 Market Street, Suite 1200
Philadelphia, Pennsylvania 19103
ADMINISTRATOR
Investment Company Capital Corp.
P.O. Box 515
Baltimore, Maryland 21203
CUSTODIAN
The Chase Manhattan Bank, N.A.
3 Chase Metrotech Center
Brooklyn, NY 11245
LEGAL COUNSEL
Drinker Biddle & Reath LLP
Philadelphia National Bank Bldg.
1345 Chestnut Street
Philadelphia, Pennsylvania 19107
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
250 West Pratt Street
Baltimore, Maryland 21201
INVESTMENT SUB-ADVISOR
(for Emerging Markets Portfolio)
Pictet International Management Limited
Cutlers Garden
5 Devonshire Square
London, United Kingdom EC2M 4LD
DISTRIBUTOR
ICC Distributors, Inc.
Two Portland Square
Portland, Maine 04101
<PAGE>
The report is submitted for the general information of the shareholders of The
Glenmede Fund, Inc. and The Glenmede Portfolios. It is not authorized for
distribution to prospective investors unless accompanied or preceded by an
effective prospectus for the Funds, which contains information concerning the
Fund's investment policies and expenses as well as other pertinent information.
