[LOGO]
COMPASS CAPITAL FUNDS SM
ANNUAL REPORT
TO SHAREHOLDERS
SEPTEMBER 30, 1996
MONEY MARKET
PORTFOLIOS
NOT (BULLET)MAY LOSE VALUE
FDIC (BULLET)NO BANK GUARANTEE
INSURED
<PAGE>
COMPASS CAPITAL FUNDS
Money Market Portfolios
- -----------------------
(BULLET) Money Market (BULLET) North Carolina Municipal
Money Market
(BULLET) U.S. Treasury Money Market (BULLET) Ohio Municipal Money Market
(BULLET) Municipal Money Market (BULLET) Pennsylvania Municipal
Money Market
(BULLET) New Jersey Municipal Money Market (BULLET) Virginia Municipal Money
Market
Table of Contents
- -----------------
Letter from the President ............................ 1
Statements of Net Assets ............................. 2-21
Portfolio Financial Statements
Statements of Operations ....................... 22-23
Statements of Changes in Net Assets ............ 24-25
Financial Highlights ........................... 26-31
Notes to Financial Statements ........................ 32
Report of Independent Accountants .................... 40
<PAGE>
PRESIDENT'S LETTER COMPASS CAPITAL FUNDS
November 15, 1996
Dear Shareholder,
We are pleased to present this annual report of the Compass Capital Funds.
We hope that you will agree that the enhancements made to our shareholder
reports are helpful.The most important change is the creation of individual
portfolio summaries that should make it easier for you to find out about
investment activity in your portfolio.Equally important is the addition of a
chart that illustrates how all classes of each portfolio performed compared to
its benchmark, making it easier to evaluate performance.These changes - designed
to help you stay informed about your investment - are part of our continuing
effort to improve how we communicate with you. We hope you find them useful now
and in the future.
WHAT HAPPENED IN THE ECONOMY AND FINANCIAL MARKETS
Over the last twelve months, the financial markets have rewarded most
investors with remarkable gains.The stock market, reflecting the continued
strength of corporate earnings, was up over 26% - extending the bull market to
an unprecedented sixth year and making it one of the longest bull markets in the
post-World War II era.Similarly the bond market, reflecting moderate economic
growth and relatively low inflation produced returns of over 4%. So, whether
invested in stocks or bonds, most investors have had a great year.
OUR THOUGHTS ON THE ECONOMY
We believe that favorable long-term trends of slower growth and low
inflation should give the stock and bond markets reason to advance in the coming
year. However, with the markets having registered dramatic gains over the last
couple of years and short-term volatility increasing, it may be unrealistic to
expect the stock and bond markets to replicate that performance over the year.
We believe stock market gains of 8-10% should still be viewed as excellent.
WHAT THIS MEANS TO SHAREHOLDERS
More than ever, we would like to remind all our shareholders to stay
focused on the long term and to use prudence when assessing an investment
strategy. Additionally, it is important for investors to keep in mind that a
regular program of investing in diversified portfolios of stocks and bonds may
prove successful and actually reduce the overall level of risk to their
investment.
Finally, with our portfolio managers maintaining a pure investment style -
the strict adherence to investment policy guidelines - investors are assured
that they are getting what they expected when making their investment. As a
result, we are confident that Compass Capital Funds give investors the best
opportunity to match their expectations with actual investment results.
On the following pages, you will find a summary of the portfolio's
performance in light of the recent economic environment. We would like to thank
you for your confidence in CompassCapital Funds and we look forward to helping
you reach your long-term investment goals.
Sincerely,
(/S/ KAREN H. SABATH)
Karen H. Sabath
President, Compass Capital Group, Inc.
1
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
-------- ----- ------------
AGENCY OBLIGATIONS -- 0.4%
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.4%
5.41% 12/06/96
(Cost $9,997,327) $ 10,000 $ 9,997,327
------------
ASSET BACKED SECURITIES -- 0.4%
Merrill Lynch Structured Enhanced
Return Trust Series 1993A-2
5.55% 11/18/96
(Cost $10,000,000) 10,000 10,000,000
------------
CERTIFICATES OF DEPOSIT--23.9%
DOMESTIC -- 6.0%
American Express Centurion Bank
5.95% 10/25/96 15,000 15,000,000
FCC National Bank
5.80% 10/10/96 6,000 6,000,000
First National Bank of Boston
5.50% 01/13/97 50,000 50,000,000
Mellon Bank
5.54% 02/07/97 50,000 50,000,000
Morgan Guaranty Trust of New York
5.91% 09/18/97 19,000 19,000,565
------------
140,000,565
------------
YANKEE DOLLAR -- 17.9%
Bank of Tokyo-Mitsubishi
5.60% 11/04/96 25,000 25,000,000
Dai-ichi Kangyo Bank
5.47% 10/11/96 50,000 50,000,000
Deutsche Bank
5.57% 12/31/96 50,000 50,001,225
Royal Bank of Canada
5.55% 01/31/97 25,000 25,000,000
Sanwa Bank Ltd. Japan
5.48% 10/07/96 40,000 40,000,000
5.50% 10/07/96 25,000 25,000,000
5.49% 10/21/96 50,000 50,000,276
Swedbank, Inc.
5.45% 11/06/96 100,000 100,000,986
5.63% 03/25/97 50,000 50,002,364
------------
415,004,851
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $555,005,416) 555,005,416
------------
COMMERCIAL PAPER -- 47.7%
ASSET BACKED SECURITIES -- 4.6%
Sigma Finance, Inc.
5.33% 11/25/96 28,500 28,267,923
5.48% 11/25/96 55,000 54,539,528
5.57% 02/05/97 26,000 25,489,107
------------
108,296,558
------------
BANKS -- 3.2%
Chase Manhattan Corp.
5.33% 01/10/97 50,000 49,252,320
National City Corp.
5.35% 12/09/96 25,000 24,743,646
------------
73,995,966
------------
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
-------- ----- -----------
COMMERCIAL PAPER (CONTINUED)
CREDIT INSTITUTIONS -- 11.8%
Associates Corp. of North America
5.40% 11/13/96 $ 40,000 $ 39,742,000
BMW US Capital Corp.
5.38% 10/09/96 50,000 49,940,222
5.45% 12/03/96 37,112 36,758,044
Ford Motor Credit Corp.
5.43% 10/22/96 50,000 49,841,625
General Motors Acceptance Corp.
5.58% 12/26/96 30,000 29,600,100
5.48% 02/24/97 40,000 39,111,022
5.48% 05/14/97 30,000 28,972,500
--------------
273,965,513
--------------
FINANCE LESSORS -- 4.9%
General Electric Capital Corp.
5.45% 12/04/96 75,000 74,273,333
5.46% 02/24/97 40,000 39,114,267
--------------
113,387,600
--------------
FINANCE SERVICES -- 2.1%
Countrywide Funding Corp.
5.45% 10/18/96 50,000 49,871,320
--------------
OIL & GAS -- 2.2%
Repsol Int'l Finance B.V.
5.37% 12/27/96 53,000 52,312,193
--------------
SECURITY BROKERS & DEALERS -- 10.3%
Merrill Lynch & Co. Canandian DCP
5.50% 11/18/96 50,000 49,633,333
Morgan Stanley Group, Inc.
5.30% 10/21/96 100,000 99,705,556
5.45% 03/24/97 15,000 14,604,875
Nomura Holding America, Inc.
5.53% 10/31/96 25,000 24,884,792
5.45% 11/04/96 25,000 24,871,320
5.40% 11/27/96 25,000 24,786,250
--------------
238,486,126
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS -- 8.6%
Corporate Receivables Corp.
5.43% 10/21/96 50,000 49,849,167
5.37% 12/02/96 25,000 24,768,576
CXC, Inc.
5.40% 11/07/96 50,000 49,722,500
5.38% 12/13/96 25,000 24,727,264
Sears Roebuck Acceptance Corp.
5.48% 10/30/96 50,000 49,779,278
--------------
198,846,785
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,109,162,061) 1,109,162,061
--------------
TIME DEPOSITS -- 6.7%
Bank of Tokyo-Mitsubishi
5.62% 10/09/96 30,000 30,000,000
Suntrust Banks, Inc.
5.87% 10/01/96 65,000 65,000,000
Westdeutsche Landesbank Girozentrale
6.12% 10/01/96 60,000 60,000,000
---------------
TOTAL TIME DEPOSITS
(Cost $155,000,000) 155,000,000
---------------
See accompanying notes to financial statements.
2
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
--------- -------- ----------------
GUARANTEED INVESTMENT CONTRACT -- 0.4%
Peoples Security Life
5.62% 12/29/96
(Cost $10,000,000) $ 10,000 $ 10,000,000
---------------
MEDIUM TERM NOTES -- 4.8%
BANKS--0.6%
Societe Nationale Bank
6.50% 04/25/97 5,000 5,021,552
Wells Fargo & Co.
8.20% 11/01/96 8,000 8,014,635
---------------
13,036,187
---------------
CREDIT INSTITUTIONS -- 1.2%
General Motors Acceptance Corp.
7.85% 10/25/96 3,425 3,428,978
Toyota Motor Credit
7.55% 01/30/9 24,500 24,648,694
---------------
28,077,672
---------------
SECURITY BROKERS & DEALERS -- 3.0%
Bear Stearns & Co., Inc.
5.29% 03/11/97 20,000 20,000,000
Merill Lynch & Co.
5.12% 02/27/97 25,000 24,997,964
5.33% 03/05/97 25,000 25,000,000
---------------
69,997,964
---------------
TOTAL MEDIUM TERM NOTES
(Cost $111,111,823) 111,111,823
---------------
VARIABLE RATE OBLIGATIONS -- 15.2%
BANKS -- 1.7%
Comerica Bank
5.43%** 11/08/96 39,200 39,196,052
---------------
CREDIT INSTITUTIONS -- 2.2%
Norwest Corp.
5.43%** 10/28/96 50,000 50,000,000
---------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.4%
5.78%** 10/01/96 10,000 10,000,000
---------------
SECURITY BROKERS & DEALERS -- 7.8%
Bear Stearns & Co., Inc.
5.51%** 10/22/96 50,000 50,000,000
5.39%** 11/10/96 35,000 35,000,000
Goldman Sachs Group, LP
5.71%** 11/06/96 47,000 47,000,000
Lehman Brothers Holdings, Inc.
5.75%** 12/06/96 50,000 50,000,000
---------------
182,000,000
---------------
STUDENT LOAN MARKETING ASSOCIATION -- 3.1%
5.49%** 10/01/96 5,000 4,991,420
5.51%** 10/01/96 20,000 20,000,000
5.52%** 10/01/96 21,000 20,997,747
5.53%** 10/01/96 15,000 14,996,871
5.57%** 10/04/96 11,000 11,000,000
---------------
71,986,038
---------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $353,182,090) 353,182,090
---------------
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
--------- -------- ---------------
INFINITY CASH RESERVE, PRIME -- 0.5%
Infinity Cash Reserve - Prime
(Cost $10,969,821) $ 10,970 $ 10,969,821
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $2,324,428,538*) 100.0% 2,324,428,538
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.0% 602,852
-------- --------------
NET ASSETS (Equivalent to $1.00
per share based on 587,694,207
Institutional shares,
1,575,136,996 Service
shares, 162,094,940 Investor A
shares, and 138,675 Investor B
shares outstanding) 100.0% $2,325,031,390
======== ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A AND INVESTOR B
SHARE
($2,325,031,390 / 2,325,064,818) $1.00
=====
- --------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1996.
See accompanying notes to financial statements.
3
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
U.S. TREASURY MONEY MARKET PORTFOLIO
PAR
MATURITY (000) VALUE
--------- -------- ----------------
U.S. TREASURY OBLIGATIONS -- 24.7%
U.S. TREASURY BILLS -- 11.4%
5.11% 11/29/96 $ 25,000 $ 24,790,427
4.78% 02/06/97 25,000 24,574,667
4.82% 02/06/97 25,000 24,571,111
4.93% 02/06/97 15,000 14,737,067
5.08% 03/06/97 15,000 14,669,800
5.12% 03/06/97 15,000 14,666,875
5.17% 04/03/97 11,500 11,196,145
------------
129,206,092
------------
U.S. TREASURY NOTES -- 13.3%
6.87% 10/31/96 20,000 20,018,765
7.25% 11/30/96 25,000 25,067,696
7.50% 01/31/97 30,000 30,250,696
6.50% 04/30/97 25,000 25,121,646
6.50% 05/15/97 10,000 10,044,376
6.50% 08/15/97 15,000 15,056,168
6.00% 08/31/97 15,000 15,021,745
8.75% 10/15/97 10,000 10,275,329
------------
150,856,421
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $280,062,513) 280,062,513
------------
REPURCHASE AGREEMENTS -- 75.4%
Aubrey G. Lanston & Co. Inc.
5.70% 10/01/96 55,000 55,000,000
(Agreement dated 09/30/96 to be
repurchased at $55,008,708.
Collateralized by $55,296,000 U.S.
Treasury Notes 5.125% to 6.25% due
11/30/98 to 04/30/01. The value of
the collateral is $56,101,140.)
Donaldson, Lufkin & Jenrette
5.70% 10/01/96 55,000 55,000,000
(Agreement dated 09/30/96 to be
repurchased at $55,008,708.
Collateralized by a $47,462,000 U.S.
Treasury Bonds 8.5% due 02/15/20.
The value of the collateral is
$56,122,276.)
Goldman Sachs & Co.
5.75% 10/01/96 24,000 24,000,000
(Agreement dated 09/30/96 to be
repurchased at $24,003,833.
Collateralized by a $24,075,000 U.S.
Treasury Notes 6.875% due 03/31/00.
The value of the collateral is
$24,480,182.)
Lehman Government Securities Inc.
5.80% 10/01/96 275,000 275,000,000
(Agreement dated 09/30/96 to be
repurchased at $275,044,306.
Collateralized by $276,598,000 U.S.
Treasury Notes 5.0% to 8.87% due
11/15/98 to 02/15/99. The value of
the collateral is $280,408,179.)
Merrill Lynch
5.50% 10/01/96 55,000 55,000,000
(Agreement dated 09/30/96 to be
repurchased at $55,008,403.
Collateralized by $305,322,000 U.S.
Treasury Bills 7.875% to 8.875%
due 02/15/19 to 05/15/21. The value
of the collateral is $56,100,375.)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
--------- -------- ----------------
Morgan Stanley & Co.
5.83% 10/01/96 $280,300 $ 280,300,000
(Agreement dated 09/30/96 to be
repurchased at $280,345,432.
Collateralized by $1,286,000 U.S.
Treasury Bills 0.0% due 10/17/96 to
03/06/97, $20,636,000 U.S. Treasury
Bonds 6.0% to 14% due 02/15/03 to
08/15/96, and $253,487,000 U.S.
Treasury Notes 4.75% to 9.0% due
11/15/96 to 07/15/06. The value of
the collateral is $286,422,254.)
Nikko Securities Co. Int'l
5.70% 10/01/96 55,000 55,000,000
(Agreement dated 09/30/96 to be
repurchased at $55,008,708.
Collateralized by $54,458,000 U.S.
Treasury Notes 7.25% due 08/15/22.
The value of the collateral is
$56,100,453.)
Swiss Bank Corp.
5.70% 10/01/96 55,000 55,000,000
--------------
(Agreement dated 09/30/96 to be
repurchased at $55,008,708.
Collateralized by $51,528,000 U.S.
Treasury Bonds 7.5% due 11/15/24.
The value of the collateral is
$56,101,110.)
TOTAL REPURCHASE AGREEMENTS
(Cost $854,300,000) 854,300,000
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,134,362,513*) 100.1% 1,134,362,513
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.1%) (1,084,647)
------- --------------
NET ASSETS (Equivalent to $1.00
per share based on 167,255,153
Institutional shares, 955,720,162
Service shares, and 10,631,164
Investor A shares outstanding) 100.0% $1,133,277,866
====== ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($1,133,277,866 / 1,133,606,479) $1.00
=====
- --------------------
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
4
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
--------- -------- ----------------
MUNICIPAL BONDS -- 99.8%
ALABAMA -- 0.7%
Columbia Industrial Development Board
PCR (Alabama Power Co. Project)
Series 1995A DN
4.00%** 10/01/96 $ 2,200 $ 2,200,000
------------
CALIFORNIA -- 14.3%
California Pollution Control Financing
Authority PCR (Southern California
Edison Co. Project) Series 1986A DN
3.85%** 10/01/96 10,500 10,500,000
Los Angeles County Series 1996A TRAN
4.50% 06/30/97 19,400 19,485,681
Oakland Certificates Partners (Capital
Equipment Project) Series 1985 DN
4.10%** 10/07/96 1,900 1,900,000
Southeast Resource Recovery Facility
Authority Series 1993A DN
3.95%** 10/07/96 6,900 6,900,000
California Series 1996A RAN
4.50% 06/30/97 4,500 4,517,091
California Series 1996C-1 RAN
3.65% 10/07/96 500 500,000
------------
43,802,772
------------
COLORADO -- 6.9%
Colorado State General Fund RB
Series 1996A TRAN
4.50% 06/27/97 5,000 5,023,052
Denver City and County Airport System
RB Series B TECP
3.80% 12/16/96 2,000 2,000,000
Denver City and County Airport System
RB Series C TECP
3.70% 10/15/96 2,000 2,000,000
Denver City and County Airport System
RB Series D TECP
3.70% 10/15/96 3,000 3,000,000
Denver City and County Airport System
RB Series E TECP
3.80% 12/16/96 9,075 9,075,000
------------
21,098,052
------------
CONNECTICUT -- 1.6%
Connecticut State of Special Assessment
Unemployment Compensation Advance
Fund RB (Connecticut Unemployment
Project) Series 1993C MB
3.90% 07/01/97 5,000 5,000,000
------------
DELAWARE -- 2.1%
Delaware Economic Development
Authority (Normaco Income Project)
Series 1984 DN
4.10%** 10/07/96 6,600 6,600,000
------------
DISTRICT OF COLUMBIA -- 1.3%
District of Columbia GO
Series 1992A-1 DN
4.10%** 10/01/96 1,000 1,000,000
District of Columbia GO
Series 1992a-5 DN
4.10%** 10/01/96 2,900 2,900,000
------------
3,900,000
------------
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
--------- -------- ----------------
MUNICIPAL BONDS (CONTINUED)
FLORIDA -- 1.6%
Dade County (Youth Fair & Exposition
Project) Series 1995 DN
3.90%** 10/07/96 $ 4,820 $ 4,820,000
------------
GEORGIA -- 4.0%
Clayton County Development Authority
(Mcilrath Corp. Project) Series 1986 DN
4.05%** 10/07/96 4,700 4,700,000
Fulton County Development Authority
(Georgia Tech Athletic Association
Project) Series 1995 DN
3.90%** 10/07/96 7,500 7,500,000
------------
12,200,000
------------
ILLINOIS -- 10.9%
Illinois Development Finance Authority
(Foundation For Safety & Health
Project) Series 1992 DN
3.85%** 10/07/96 5,450 5,450,000
Illinois Development Finance Authority
IDR (6 West Hubbard Street Project)
Series 1986 DN
3.60%** 10/07/96 3,410 3,410,000
Illinois Development Finance Authority
IDR (Royal Continental Box Co.
Project) Series 1995A DN
4.25%** 10/07/96 1,000 1,000,000
Illinois Development Finance Authority
IDR (Webster-Wayne Shopping Center
Project) Series 1995 DN
3.85%** 10/07/96 3,875 3,875,000
Illinois Development Finance Authority
PCR (Commonwealth Edison Co.
Project) Series 1994C DN
3.85%** 10/07/96 2,000 2,000,000
Illinois Development Financing Authority
PCR (Illinois Power Company Project)
Series 1987D DN
4.00%** 10/01/96 1,000 1,000,000
Illinois Health Facilities Authority
(Revolving Fund Pooled Financing
Program Project) Series 1985C DN
3.90%** 10/07/96 9,800 9,800,000
Illinois Health Facility Authority (Evanston
Hospital Corp. Project) Series 1990A MB
3.40% 10/15/96 3,000 3,000,000
Tinley Park Multi-Family Housing
Mortgage Refunding (Edgewater Walk
Phase IIIA & IIIB Project) Series 1994 DN
3.85%** 10/07/96 2,425 2,425,000
Village of Schiller Park IDR (Victor
Products Corp. Project) Series 1995 DN
4.25%** 10/07/96 1,500 1,500,000
------------
33,460,000
------------
INDIANA -- 0.2%
South Bend Redevelopment Authority
(College Football Hall of Fame Project)
Series 1994 DN
4.35%** 10/07/96 700 700,000
------------
See accompanying notes to financial statements.
5
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
--------- -------- ----------------
MUNICIPAL BONDS (CONTINUED)
IOWA -- 1.1%
Louisa County PCR (Iowa-Illinois Gas
and Electric Co. Project)
Series 1986A DN
3.80%** 10/07/96 $ 3,500 $ 3,500,000
------------
KENTUCKY -- 2.6%
Clark County Pollution Control RB (East
Kentucky Power Cooperative Project)
Series 1984 MB
3.40% 10/15/96 3,000 3,000,000
Maysville Solid Waste Disposal Facilities
RB (Inland Container Corporation
Project) Series 1992 MB
3.75% 12/17/96 5,000 5,000,000
------------
8,000,000
------------
LOUISIANA -- 1.1%
Calcasieu Parish Industrial Development
Environmental RB (Citgo Petroleum
Project) Series 1995 DN
4.15%** 10/01/96 1,400 1,400,000
Jefferson Parish Hospital Revenue
Series 1985 DN
3.90%** 10/07/96 2,100 2,100,000
------------
3,500,000
------------
MARYLAND -- 7.1%
Anne Arundel County RB (Mountain
Ridge Apartments Project)
Series 1996D DN
3.83%** 10/02/96 6,405 6,405,000
Maryland Community Development
Administration (Department of Housing
and Community Development Single
Family Project) Series 1996 MB
3.45% 10/01/96 4,000 4,000,000
Maryland Health & Higher Education
Facilities Authority RB (Helix Health
Hospitals Project) Series 1996A DN
3.85%** 10/07/96 5,000 5,000,000
Maryland IDA Finance (Brass Mill Road
Limited Partnership Facility Project)
Series 1995 DN
3.83%** 10/07/96 3,910 3,910,000
Maryland IDA Finance (Patapsco
Associates Limited Partnership Facility
Project) Series 1995 DN
3.83%** 10/07/96 2,370 2,370,000
------------
21,685,000
------------
MICHIGAN -- 2.1%
Michigan Strategic Fund (Dow Chemical
Company) Series 1986 TECP
3.50% 10/25/96 4,500 4,500,000
Northville IDA (Thrifty Northville Project)
Series 1984 DN
3.92%** 10/07/96 2,000 2,000,000
------------
6,500,000
------------
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
--------- -------- ----------------
MUNICIPAL BONDS (CONTINUED)
MISSOURI -- 2.2%
Kansas IDA (Mid-America Health
Services Inc. Project) Series
1984 DN
4.00%** 10/07/96 $ 4,500 $ 4,500,000
Missouri Environmental Improvement &
Energy Resource Authority (Monsanto
Co. Project) Series 1988 DN
3.90%** 10/07/96 2,300 2,300,000
------------
6,800,000
------------
MONTANA -- 2.3%
Forsyth Pollution Control RB (Portland
General Electric Co. Project)
Series 1983 DN
3.90%** 10/07/96 6,800 6,800,000
Forsyth Pollution Control RB (Portland
General Electric Co. Project)
Series 1983A DN
3.80%** 10/07/96 300 300,000
------------
7,100,000
------------
NEBRASKA -- 0.6%
Nebraska Investment Finance Authority
Multifamily Loan (Apple Creek
Associates Project) Series 1985A DN
3.90%** 10/07/96 1,900 1,900,000
------------
NEVADA -- 0.3%
Henderson Public Improvement Trust
(Berry Plastics Corp. Project)
Series 1991 DN
4.05%** 10/07/96 900 900,000
------------
NEW HAMPSHIRE -- 2.0%
New Hampshire Higher Educational and
Health Facilities Authority RB (Hunt
Community Issue Project)
Series 1996 DN
3.85%** 10/07/96 6,220 6,220,000
------------
NEW MEXICO -- 0.5%
Hurley Pollution Control RB (Kennecott
Santa Fe Project) Series 1985 DN
3.95%** 10/01/96 1,500 1,500,000
------------
NEW YORK -- 7.0%
New York City Series 1996A TAN
4.50% 02/12/97 16,000 16,049,124
New York State Dormitory Authority RB
(Beverwyck Inc. Project) Series 1995 DN
3.85%** 10/07/96 5,400 5,400,000
------------
21,449,124
------------
NORTH CAROLINA -- 4.3%
North Carolina Medical Care Commission
(Pooled Equipment Financing Project)
Series 1985 DN
3.90%** 10/07/96 7,000 7,000,000
Wake County Industrial Facilities &
Pollution Control Authority (Carolina
Power & Light Co. Project)
Series 1985C DN
4.00%** 10/07/96 3,900 3,900,000
See accompanying notes to financial statements.
6
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
-------- ----- --------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Wake County Industrial Facilities &
Pollution Control Financing Authority
(Carolina Power & Light Co. Project)
Series 1985B DN
4.00%** 10/07/96 $ 2,300 $ 2,300,000
-----------
13,200,000
-----------
OHIO -- 2.9%
Clermont County Hospital Facilities (Mercy
Health Systems Project) Series 1994B DN
3.95%** 10/07/96 3,764 3,764,000
Greater Cleveland Regional Transit
Authority GO Series 1996 MB
3.90% 10/17/96 5,000 5,000,963
-----------
8,764,963
-----------
OKLAHOMA -- 1.0%
Muskogee Industrial Trust PCR (Oklahoma
Gas and Electric Project)
Series 1995A DN
3.95%** 10/07/96 3,200 3,200,000
-----------
PENNSYLVANIA -- 2.8%
Delaware County IDA Solid Waste
(Scott Paper Co. Project) Series
1984C DN
3.80%** 10/07/96 3,300 3,300,000
Philadelphia Hospital & Higher
Educational Facility Authority
(Children's Hospital Project) Series
1992B DN
4.00%** 10/01/96 5,000 5,000,000
Sayre Health Care Facility Authority
(VHA Capital Financing Project)
Series 1985K DN
3.80%** 10/07/96 300 300,000
-----------
8,600,000
-----------
RHODE ISLAND -- 0.7%
Rhode Island Housing & Mortgage
Finance Corp.(Home Ownership
Opportunity Project) Series 1996C MB
3.45% 10/02/96 2,200 2,200,000
-----------
SOUTH DAKOTA -- 0.6%
Lawrence County Pollution Control RB
(Homestate Mining Project)
Series 1983 DN
3.60%** 10/07/96 1,800 1,800,000
-----------
TENNESSEE -- 7.1%
Montgomery County Public Building
Authority Pooled Financing RB
(Montgomery County Loan Project)
Series 1995 DN
3.85%** 10/07/96 5,000 5,000,000
Montgomery County Public Building
Authority Pooled Financing RB
(Tennessee County Loan Pool Project)
Series 1995 DN
3.85%** 10/07/96 8,600 8,600,000
Nashville & Davidson Counties Industrial
Development Board (Hickory Trace
Project) Series 1995 DN
3.85%** 10/01/96 3,200 3,200,000
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
-------- ----- --------------
MUNICIPAL BONDS (CONTINUED)
TENNESSEE (CONTINUED)
Tennessee Housing Authority
(Homeownership Project)
Series 1996 MB
3.85% 05/29/97 $ 5,000 $ 5,000,000
-----------
21,800,000
-----------
TEXAS -- 3.9%
Angelina and Neches River Authority
Solid Waste Disposal RB (Temple-
Eastex Incorporated Project)
Series 1993 MB
3.75% 12/17/96 1,000 1,000,000
Austin Higher Education Authority
(St. Edwards University Project)
Series 1995 DN
3.90%** 10/07/96 2,000 2,000,000
Brazos River Harbor Navigation District
(Dow Chemical Project) Series 1991
TECP
3.60% 10/23/96 4,000 4,000,000
San Antonio Housing Finance Corporation
(Wellington Place Apartments Project)
Series 1995A DN
4.00%** 10/07/96 2,945 2,945,000
State of Texas Series 1996 TRAN
4.75% 08/29/97 125 125,853
Texas State Veterans Housing Assistance
Series 1995 MB
3.90% 11/06/96 2,000 2,000,000
-----------
12,070,853
-----------
UTAH -- 0.8%
Intermountain Power Agency Supply RB
Series 1885F MB
3.93% 06/16/97 2,500 2,500,000
-----------
VIRGINIA -- 0.6%
Culpeper Town IDA Residential Care
Facility (Baptist Homes Project)
Series 1992 DN
3.85%** 10/07/96 1,500 1,500,000
Lynchburg IDA Hospital Facilities (VHA
Mid-Atlantic States Capital Asset
Finance Project) Series 1985C DN
3.80%** 10/07/96 200 200,000
-----------
1,700,000
-----------
WASHINGTON -- 2.6%
King County Washington Sewer RB
Series A MB
3.70% 12/12/96 5,000 5,000,000
Yakima County Public Corporation
(Jeld-Wen Income Project)
Series 1988 DN
4.25%** 10/07/96 3,040 3,040,000
-----------
8,040,000
-----------
See accompanying notes to financial statements.
7
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
VALUE
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $306,710,764*) 99.8% $306,710,764
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.2% 692,738
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 43,935,882
Institutional shares, 261,643,731
Service shares and 1,851,424
Investor A shares outstanding) 100.0% $307,403,502
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($307,403,502 / 307,431,037) $1.00
=====
- ----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1996, and
maturities shown are the longer of the next interest readjustment
ate or the date the principal owed can be recovered through
demand.
See accompanying notes to financial statements.
8
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ---------- -------------
MUNICIPAL BONDS -- 99.5%
NEW JERSEY -- 91.5%
Atlantic County GO Series 1993 MB
4.00% 12/01/96 $ 250 $ 250,088
Barnegat Township GO Series 1995 MB
4.70% 11/01/96 130 130,102
Bellmawr GO Series 1996 MB
4.90% 08/01/97 175 176,482
Berkeley Township GO Series 1995 MB
4.62% 11/15/96 250 250,231
Bernardsville Township GO Series 1996 BAN
3.87% 04/18/97 3,063 3,066,665
Boonton GO Series 1996 MB
4.95% 09/01/97 195 196,773
Camden County Improvement Authority RB
(Jewish Community Center Project)
Series 1995 DN
3.60%** 10/02/96 1,345 1,345,000
Deptford Township GO Series 1995 MB
5.00% 12/01/96 101 101,215
Essex County Public Improvement Authority
Project RB (County Asset Sale Project)
Series 1995 DN
3.60%** 10/07/96 2,500 2,500,000
Hamilton Township-Atlantic County GO
Series 1996 BAN
3.87% 01/31/97 2,669 2,671,711
Hawthorne General Improvement GO
Series 1996 MB
5.20% 08/15/97 150 151,670
Hunterdon County GO Series 1996B MB
5.00% 05/01/97 765 770,061
Manasquan Board of Education GO
Series 1995 MB
5.12% 01/15/97 160 160,571
Mercer County Improvement Authority
(Pooled Government Loan Project)
Series 1985 DN
3.60%** 10/07/96 3,300 3,300,000
Mercer County Improvement Authority
Revenue Lease RB Series 1996 MB
4.25% 12/01/96 415 415,470
Millville GO Series 1996 MB
5.00% 03/01/97 270 271,464
Monroe Township-Middlesex County GO
Series 1996 BAN
4.25% 04/17/97 957 958,472
Morris County GO Series 1996 BAN
3.97% 08/08/97 1,336 1,336,433
Morris Township GO Series 1996 BAN
4.08% 01/16/97 388 388,450
Mount Olive Township GO Series 1996 BAN
3.50% 11/27/96 2,470 2,470,748
New Jersey Economic Development Authority
Economic Development RB (Industrial
Improvements) Series 1992C DN
3.85%** 10/07/96 465 465,000
New Jersey Economic Development Authority
Economic Development RB (Manhattan
Bagel Company, Inc. Project) Series 1995
DN
3.90%** 10/07/96 1,000 1,000,000
New Jersey Economic Development Authority
Economic Development RB (Nandan Co.
Project) Series 1995 DN
4.05%** 10/07/96 1,000 1,000,000
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ---------- -------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
New Jersey Economic Development Authority
Industrial and Economic Development RB
(East Meadow Corp. Project B)
Series 1986B MB
3.95% 10/07/96 $4,770 $ 4,770,000
New Jersey Economic Development Authority
PCRB (Public Service Electric & Gas
Company) Series 1995A DN
3.50%** 10/07/96 600 600,000
New Jersey Economic Development Authority
RB (Danic Urban Renewal Project)
Series 1985 DN
3.65%** 10/07/96 2,000 2,000,000
New Jersey Economic Development Authority
RB (Fellowship Valley Project)
Series 1995B DN
3.95%** 10/07/96 700 700,000
New Jersey Economic Development Authority
RB (Franciscan Oaks Project B)
Series 1992B DN
3.65%** 10/02/96 400 400,000
New Jersey Economic Development Authority
RB (Hillcrest Health Services Systems
Project) Series 1995 DN
3.80%** 10/07/96 4,800 4,800,000
New Jersey Economic Development Authority
RB (Local Housing) Series 1992D-1 DN
3.85%** 10/07/96 2,065 2,065,000
New Jersey Economic Development Authority
RB (Russell Berrie Company Project)
Series 1983 DN
3.35%** 10/02/96 200 200,000
New Jersey Economic Development Authority
RB (Winchester Gardens; Ward Homestead
Project) Series 1995B DN
3.90%** 10/07/96 14,740 14,740,000
New Jersey Economic Development Authority
Thermal Energy Facilities RB (Thermal
Energy, L.P. Project) Series 1995 MB
3.60% 12/12/96 1,500 1,500,000
New Jersey GO Series 1990 MB
7.00% 04/01/97 500 507,880
New Jersey GO TRAN TECP
3.75% 10/03/96 2,000 2,000,000
New Jersey Sports and Exposition Authority
RB Series 1992C DN
3.55%** 10/07/96 165 165,000
New Jersey Transportation Trust Fund
Authority Trust Receipts (Transportation
System Project) Series 1996A DN
3.80%** 10/07/96 7,500 7,500,000
North Bergen Township Board of Education
Promissory Notes RB Series 1996 MB
3.62% 03/14/97 870 870,000
Parsippany-Troy Hills Township GO
Series 1995 BAN
4.00% 11/01/96 2,000 2,000,489
Parsippany-Troy Hills Township GO
Series 1996 BAN
4.00% 05/07/97 1,500 1,503,109
Passiac County New Jersey Utilities Authority
Solid Waste System RB Series 1996B MB
3.95% 09/03/97 1,250 1,250,000
Princeton Township GO Series 1996 BAN
4.37% 08/27/97 1,400 1,407,076
See accompanying notes to financial statements.
9
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
Salem County GO Series 1996 DN
5.35%** 09/01/97 $ 175 $ 177,295
Salem County Industrial Pollution Control
Financing Authority RB (E.I. DuPont de
Nemours and Company Project)
Series 1982A DN
3.70%** 10/07/96 3,100 3,100,000
Sea Isle City GO Series 1995 MB
4.50% 12/01/96 375 375,525
Tabernacle School District GO
Series 1996 DN
5.37%** 09/01/97 175 177,328
Waldwick GO Series 1996 MB
3.84% 05/28/97 2,524 2,524,165
-----------
78,709,473
-----------
NEW YORK -- 7.9%
Port Authority of New York & New Jersey
Special Obligation RB (Versatile Structure
Obligations) Series 1996-4 DN
3.85%** 10/01/96 1,200 1,200,000
Port Authority of New York & New Jersey
Special Obligation RB (Versatile Structure
Obligations) Series 1993-1 DN
4.00%** 10/01/96 1,700 1,700,000
Port Authority of New York & New Jersey
Special Obligation RB (Versatile Structure
Obligations) Series 1996-5 DN
4.00%** 10/07/96 800 800,000
Port Authority of New York and New Jersey
TECP
3.85% 10/04/96 3,110 3,110,000
-----------
6,810,000
-----------
PUERTO RICO -- 0.1%
Puerto Rico Highway & Transportation
Authority RB Series 1993X DN
3.50%** 10/07/96 100 100,000
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $85,619,473*) 99.5% 85,619,473
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.5% 447,572
------ -----------
NET ASSETS (Equivalent to $1.00
per share based on 614,192
Institutional shares, 68,156,545 Service
shares and 17,313,279 Investor A
shares outstanding) 100.0% $86,067,045
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($86,067,045 / 86,084,016) $1.00
=====
- ----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1996, and
maturities shown are the longer of the next interest readjustment date or
the date the principal owed can be recovered through demand.
See accompanying notes to financial tatements.
10
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- -------------
MUNICIPAL BONDS -- 99.8%
NORTH CAROLINA -- 94.2%
Bladen County Industrial Facilities and
Pollution Control Financing Authority
Resource Recovery RB (BCH Energy,
L.P. Project) Series 1993 DN
4.05%** 10/07/96 $2,000 $ 2,000,000
Cabarrus County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Philip Morris Cos. Inc. Project)
Series 1993 DN
3.90%** 10/07/96 1,000 1,000,000
Cary Parks and Recreational Facilities
GO Series 1996 MB
5.10% 04/01/97 75 75,619
Cary Sanitary Sewer GO Series 1996 MB
5.10% 04/01/97 275 277,272
Catawba County Industrial Facilities and
Pollution Control Financing Authority
IDRB (WSMP Inc. Project)
Series 1992 DN
4.00%** 10/07/96 500 500,000
Charlotte Airport Refunding RB
Series 1993A DN
3.80%** 10/07/96 2,200 2,200,000
Charlotte-Mecklenburg Hospital Authority
RB (Health Care System Project)
Series 1996B DN
3.70%** 10/07/96 4,000 4,000,000
Charlotte-Mecklenburg Hospital Authority
RB ( Health Care System Project)
Series 1996D DN
3.80%** 10/07/96 2,000 2,000,000
Cleveland County GO Series 1990 MB
7.10% 06/01/97 290 296,217
Cumberland County GO Series 1993 MB
5.60% 02/01/97 650 654,788
Durham County GO Series 1993 DN
3.65%** 10/07/96 2,350 2,350,000
Durham GO Series 1988 MB
6.50% 10/01/96 500 500,000
Durham GO Series 1993 DN
3.80%** 10/07/96 4,535 4,535,000
Green County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Federal Paper Board Co.,
Inc. Project) Series 1989 DN
3.95%** 10/07/96 1,100 1,100,000
Green County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Snow Hill Tape Corp. Project)
Series 1995 DN
3.95%** 10/07/96 2,000 2,000,000
Greensboro Certificates of Participation
(Greensboro Coliseum Complex
Improvement Project) Series 1995A
DN
3.80%** 10/07/96 2,000 2,000,000
Guilford County Industrial Facilities and
Pollution Control Financing Authority
IDRB (U.S. Label Corp. Project)
Series 1995 DN
3.95%** 10/07/96 2,500 2,500,000
High Point GO Series 1987 MB
7.20% 04/01/97 150 152,534
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- -------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Iredell County Industrial Facilities and
Pollution Control Financing Authority
RB (Purina Mills, Inc. Project)
Series 1995 DN
3.95%** 10/07/96 $4,000 $ 4,000,000
Lee County Industrial Facilities and
Pollution Control Financing Authority
Refunding IDRB (Trion, Inc. Project)
Series 1995 DN
3.85%** 10/07/96 1,700 1,700,000
Lenoir County Industrial Facilities and
Pollution Control Financing Authority
Resource Recovery RB (Carolina
Energy, L.P. Project) Series 1995 DN
4.05%** 10/07/96 4,000 4,000,000
Lincoln County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Cochrane Co. Project)
Series 1990 DN
4.00%** 10/02/96 1,250 1,250,000
Mecklenburg County GO Series 1988 DN
3.75%** 10/07/96 2,000 2,000,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Edgcomb Metals Co.
Project) Series 1984 DN
3.80%** 10/07/96 3,500 3,500,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Otto Industries, Inc.
Project) Series 1988 DN
4.00%** 10/07/96 2,950 2,950,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Griffith Micro Science
Project) Series 1995 DN
3.95%** 10/07/96 1,500 1,500,000
Mecklenburg County Lease RB (The
YMCA of Greater Charlotte Project)
Series 1996 DN
3.80%** 10/07/96 3,000 3,000,000
Mecklenburg County Series 1996C DN
3.75%** 10/01/96 3,000 3,000,000
Mecklenburg GO Series 1996C DN
3.75%** 10/03/96 1,000 1,000,000
New Hanover County Industrial Facilities
IDRB (Interroll Corp. Project) Series
1989 DN
4.00%** 10/03/96 1,395 1,395,000
North Carolina Agricultural Finance
Authority Agricultural Development
RB (Harvey Fertilizer & Gas Co.
Project) Series 1995 DN
3.95%** 10/07/96 1,740 1,740,000
North Carolina Eastern Municipal Power
Agency Power System RB Series 1988
TECP
3.60% 11/18/96 3,600 3,600,000
North Carolina Education Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1990 DN
3.90%** 10/07/96 1,000 1,000,000
See accompanying notes to financial statements.
11
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1996 DN
3.90%** 10/07/96 $ 600 $ 600,000
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1987A DN
3.75%** 10/07/96 2,200 2,200,000
North Carolina Educational Facilities Finance
Agency RB (Duke University Project)
Series 1991B DN
3.75%** 10/07/96 2,700 2,700,000
North Carolina Industrial Facilities and
Pollution Control Financing Authority RB
(GVK America Inc., Project) Series 1990
MB
3.90% 12/01/96 2,765 2,765,000
North Carolina Medical Care Commission
Hospital RB (Baptist Hospital Project)
Series 1992B DN
3.80%** 10/07/96 500 500,000
North Carolina Medical Care Commission
Hospital RB (Baptist Hospital Project)
Series 1996 DN
3.80%** 10/07/96 800 800,000
North Carolina Medical Care Commission
Hospital RB (Moses H. Cone Memorial
Hospital Project) Series 1993 DN
3.80%** 10/07/96 1,300 1,300,000
North Carolina Medical Care Commission
Hospital RB (Moses H. Cone Memorial
Hospital Project) Series 1995 DN
3.80%** 10/07/96 100 100,000
North Carolina Medical Care Commission
Hospital RB (Park Ridge Hospital Project)
Series 1988 DN
3.85%** 10/07/96 5,900 5,900,000
North Carolina Medical Care Commission
Hospital RB (Pooled Equipment Financing
Project) Series 1985 DN
3.90%** 10/07/96 1,400 1,400,000
North Carolina Medical Care Commission
Hospital RB (Duke University Hospital
Project) Series 1985B DN
3.75%** 10/07/96 1,200 1,200,000
North Carolina Medical Care Commission
Hospital RB (Duke University Hospital
Project) Series 1985D DN
3.75%** 10/07/96 300 300,000
North Carolina Medical Care Commission
Hospital RB (Duke University Hospital
Project) Series 1993A DN
3.75%** 10/07/96 1,500 1,500,000
North Carolina Municipal Power Agency
Number 1 (Catawba Project) Series 1996
TECP
3.65% 10/15/96 4,000 4,000,000
Person County Industrial Facilities and
Pollution Control Financing Authority RB
(Carolina Power & Light Project)
Series 1992A DN
4.05%** 10/07/96 1,200 1,200,000
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Person County Industrial Facilities
Pollution Control Finance Authority
Solid Waste Disposal RB (Carolina
Power & Light) Series 1986 DN
4.10%** 10/01/96 $ 500 $ 500,000
Pitt County GO Series 1990 MB
6.60% 02/01/97 500 504,963
Rockingham County Industrial Facilities
and Pollution Control Finance Authority
RB (Philip Morris Companies Inc.
Project) Series 1992 DN
3.90%** 10/07/96 325 325,000
University of North Carolina Chapel Hill
School of Medicine RB (Ambulatory
Care Clinic Project) Series 1990 DN
3.85%** 10/07/96 200 200,000
Wake County Industrial Facilities and
Pollution Control Finance Authority
Refunding RB (Carolina Power & Light
Co. Project) Series 1990A TECP
3.65% 10/24/96 5,500 5,500,000
Wake County Industrial Facilities and
Pollution Control Financial Authority
RB (Carolina Power & Light Co.
Project) Series 1987 DN
3.95%** 10/01/96 700 700,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Co.
Project) Series 1985B DN
4.00%** 10/07/96 2,400 2,400,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Co.)
Series 1985A DN
3.90%** 10/07/96 4,400 4,400,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light)
Series 1985C DN
4.00%** 10/07/96 3,700 3,700,000
Wilson County Industrial Facilities
Pollution Control Financing Authority
IDRB (Chip Project) Series 1989 DN
4.00%** 10/07/96 1,000 1,000,000
Winston-Salem Certificates of
Participation (Risk Acceptance
Management Corp. Project)
Series 1988 DN
3.95%** 10/07/96 480 480,000
Winston-Salem Water and Sewer System
RB Series 1994 DN
3.80%** 10/07/96 2,800 2,800,000
------------
112,751,393
------------
PUERTO RICO -- 4.8%
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
3.50%** 10/07/96 100 100,000
Puerto Rico Highway & Transportation
Authority Highway RB Series 1993X DN
3.50%** 10/07/96 1,200 1,200,000
See accompanying notes to financial statements.
12
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
PUERTO RICO (CONTINUED)
Puerto Rico Industrial, Medical and
Enviromental Pollution Control Facilities
Authority RB (Key Pharmaceuticals
Project) Series 1983 TECP
3.80% 12/01/96 $1,500 $ 1,500,786
Puerto Rico Industrial, Tourist, Educational,
Medical, and Environmental Control
Facilities RB (Inter-American University
Project) Series 1994 MB
3.75% 11/12/96 1,500 1,500,000
Puerto Rico Commonwealth PreRefunded
GO Series 1987 MB
7.12% 07/01/97 1,330 1,388,856
------------
5,689,642
------------
VIRGIN ISLANDS -- 0.8%
Virgin Islands Housing Finance Authority
Single Family Refunding RB
Series 1995B MB
3.50% 11/01/96 1,000 1,000,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $119,441,035*) 99.8% 119,441,035
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.2% 229,811
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 112,097,404
Institutional shares, 7,463,162 Service
shares and 110,401 Investor A shares
outstanding) 100.0% $119,670,846
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($119,670,846 / 119,670,967) $1.00
=====
- ----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1996, and
maturities shown are the longer of the next interest readjustment date or
the date the principal owed can be recovered through demand.
See accompanying notes to financial statements.
13
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- ------------
MUNICIPAL BONDS -- 99.6%
OHIO -- 98.4%
Ashtabula County IDRB (Plasicolors, Inc.
Project) Series 1996A DN
4.00%** 10/07/96 $2,400 $ 2,400,000
Avon GO Series 1996 BAN
4.24% 07/02/97 1,700 1,703,190
Avon Local School District GO Series 1996
MB
3.80% 12/01/96 260 260,000
Beaver Creek Local School District GO
Series 1996 MB
3.60% 12/01/96 730 730,000
Bedford Heights GO Series 1996 BAN
4.35% 06/19/97 900 901,545
Belmont County GO Series 1995 BAN
4.09% 11/26/96 300 300,128
3.89% 12/19/96 750 750,453
Berea GO Series 1995 BAN
3.85% 10/24/96 475 475,057
Cuyahoga County Hospital Improvement
RB (St. Luke's Hospital Project)
Series 1990 DN
3.85%** 10/07/96 4,000 4,000,000
Cuyahoga County IDRB (Pleasant Lake
Associates Project) Series 1995 DN
3.85%** 10/07/96 980 980,000
Delaware County IDRB (Air Waves Inc.,
Project) Series 1995 DN
4.00%** 10/07/96 970 970,000
East Palestine School District GO
Series 1996 BAN
3.50% 02/28/97 1,800 1,800,710
Erie County IDRB (Brighton Manor Co.
Project) Series 1986 DN
4.05%** 10/07/96 3,100 3,100,000
Franklin County IDRB (Alco Standard
Corp. Project) Series 1994 DN
3.90%** 10/07/96 2,000 2,000,000
Greater Cleveland Regional Transit
Authority GO Series 1996 BAN
3.90% 10/17/96 1,480 1,480,285
Greene County Economic Development
RB (Ashford Center Project)
Series 1995 DN
3.95%** 10/07/96 1,260 1,260,000
Greene County IDRB (AFC Stamping &
Production, Inc.; Barsplice Products
Project) Series 1995 DN
4.00%** 10/07/96 1,000 1,000,000
Greene County IDRB (Antioch Publishing
Co. Project) Series 1996 DN
4.05%** 10/07/96 3,000 3,000,000
Hilliard GO Series 1996 BAN
4.40% 09/18/97 1,600 1,605,926
Lucas County IDRB (Vega Industries Inc.
Project) Series 1995 DN
4.05%** 10/07/96 2,185 2,185,000
Miamisburg Sewer System RB
Series 1995 MB
3.75% 11/15/96 300 300,000
Middleburg Heights GO Series 1996 BAN
4.05% 05/29/97 585 585,739
Montgomery County Health Facilities RB
(Sisters of Charity Health Care Project)
Series 1995 DN
3.80%** 10/07/96 1,400 1,400,000
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Ohio Air Quality Development Authority
PCRB (Ohio Edison Co. Project)
Series 1988B MB
3.80% 05/01/97 $1,800 $ 1,800,000
Ohio Air Quality Development Authority
PCRB (PPG Industries, Inc. Project)
Series 1988A DN
4.05%** 10/07/96 1,000 1,000,000
Ohio Air Quality Development Authority
RB (JMG Funding, L.P. Project)
Series 1994B DN
3.90%** 10/02/96 8,300 8,300,000
Ohio Air Quality Development Authority
Refunding RB (Timken Co. Project)
Series 1992 DN
3.85% 10/02/96 2,700 2,700,000
Ohio Environmental Improvement RB
(U.S. Steel Corp. Project)
Series 1986 DN
4.10%** 10/07/96 1,000 1,000,000
Ohio Higher Educational Facility Community
RB (Oberlin College Project)
Series 1985 DN
3.85%** 10/07/96 4,000 4,000,000
Ohio Housing Finance Agency Multi-Family
Housing RB (Lincoln Park Association
Project) Series 1985 MB
3.90% 11/01/96 690 690,000
Ohio IDRB (Anomatic Corp. Project)
Series 1994 DN
4.05%** 10/03/96 1,435 1,435,000
Ohio School Districts GO (Cash Flow
Borrowing Program Certificates)
Series 1996A RAN
4.53% 12/31/96 1,000 1,001,778
Ohio Water Authority Solid Waste Disposal
RB (American Steel & Wire Corp. Project)
Series 1995 DN
4.05%** 10/07/96 8,100 8,100,000
Ohio Water Development Authority PCRB
Series 1993 MB
3.65% 12/01/96 1,000 1,000,154
Ohio Water Development Authority Refunding
RB ( Timken Co. Project) Series 1992 DN
3.85% 10/07/96 3,000 3,000,000
Portage County IDRB (Action Super Abrasive
Project) Series 1996 DN
4.05%** 10/07/96 1,200 1,200,000
Portage County IDRB (Lovejoy Industries
Project) Series 1994 DN
4.10%** 10/07/96 1,635 1,635,000
Rocky River GO Series 1996 BAN
4.15% 09/05/97 1,242 1,245,100
Sandusky County IDRB (Brighton Manor
Co. Project) Series 1986 DN
4.05%** 10/07/96 1,000 1,000,000
Solon IDRB (Cleveland Twist Drill Co. Project)
Series 1995 DN
4.05%** 10/07/96 1,800 1,800,000
Stark County GO Series 1995-3 BAN
4.14% 10/18/96 2,000 2,000,196
Stark County GO Series 1996 BAN
4.12% 06/19/97 2,000 2,003,017
See accompanying notes to financial statements.
14
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Summit County IDRB (Austin Printing Co.,
Inc. Project) Series 1994 DN
4.05%** 10/07/96 $ 600 $ 600,000
Summit County IDRB (Forest
Manufacturing Project) Series 1994 DN
4.05%** 10/03/96 500 500,000
Trumbull County IDRB (ATD Corp.
Project) Series 1995 DN
4.00%** 10/07/96 2,000 2,000,000
University Heights GO Series 1996 BAN
4.15% 05/23/97 600 600,922
Westlake Economic Development RB
(Oaks Development Co. Project)
Series 1994 DN
3.95%** 10/07/96 960 960,000
-----------
82,759,200
-----------
VIRGIN ISLANDS -- 1.2%
Virgin Islands Housing Finance Authority
Single Family Refunding RB
Series 1995B MB
3.50% 11/01/96 1,000 1,000,000
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $83,759,200*) 99.6% 83,759,200
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.4% 381,919
------ -----------
NET ASSETS (Equivalent to $1.00
per share based on 32,946,360
Institutional shares, 45,530,302
Service shares, and 5,672,582
Investor A shares outstanding) 100.0% $84,141,119
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($84,141,119 / 84,149,244) $1.00
=====
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1996, and
maturities shown are the longer of the next interest readjustment date or
the date the principal owed can be recovered through demand.
See accompanying notes to financial statements.
15
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ------- ------------
MUNICIPAL BONDS -- 99.9%
PENNSYLVANIA -- 96.5%
Allegheny County Higher Education
Building Authority RB (University of
Pittsburgh Project) Series 1985C DN
3.70%** 10/07/96 $ 2,090 $ 2,090,000
Allegheny County Hospital Development
Authority RB (Allegheny General
Hospital Project) Series 1995B DN
3.70%** 10/02/96 9,900 9,900,000
3.70%** 10/07/96 1,500 1,500,000
Allegheny County Hospital Development
Authority RB (MaGee-Womens
Hospital Project) Series 1993 MB
3.80% 10/01/96 500 500,000
Allegheny County Hospital Development
Authority RB (St. Francis Medical
Center Project) Series 1996A DN
4.00%** 10/07/96 5,000 5,000,000
Allegheny County IDA Environmental
Improvement Refunding RB (United
States Steel Corp. Project)
Series 1996 MB
3.50% 11/08/96 5,000 5,000,000
Allegheny County IDA PCRB (Duquesne
Light Co. Project) Series 1990A MB
3.70% 02/21/97 5,000 5,000,000
Allegheny County IDA Refunding PCRB
(Duquesne Light Co. Project)
Series 1992A MB
3.75% 11/07/96 8,000 8,000,000
Allentown Redevelopment Authority
Multi-Family Housing Refunding RB
(Arcadia Associates Project)
Series 1990 DN
4.30%** 10/07/96 6,000 6,000,000
Beaver County IDA PCRB (Duquesne
Light Co.; Beaver Valley Project)
Series 1993A MB
3.70% 11/15/96 9,400 9,400,000
Beaver County IDA Refunding PCRB
(Atlantic Richfield Co. Project)
Series 1995 DN
3.90%** 10/07/96 12,850 12,850,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co.; Beaver Valley
Project) Series 1990A DN
3.80%** 10/07/96 2,800 2,800,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co.; Beaver Valley
Project) Series 1990C DN
3.50%** 11/15/96 2,500 2,500,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co.; Mansfield Project)
Series 1990B DN
3.80%** 10/07/96 300 300,000
Beaver County IDA Refunding PCRB
(Toledo Edison Project) Series 1992E
TECP
3.65% 12/10/96 8,250 8,250,000
Bedford County IDA IDRB (Sepa, Inc.
Facility Project) Series 1985 DN
4.20%** 10/07/96 2,000 2,000,000
Berks County IDA (Citizens Utilities Co.
Project) Series 1996 MB
3.70% 11/08/96 4,200 4,200,000
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Berks County IDA Commercial Development
Refunding RB (Sixth and Penn Street
Project) Series 1988 DN
3.90%** 10/07/96 $ 200 $ 200,000
Berks County IDA Manufacturing Facilities
RB (Grafika Commercial Printing, Inc.
Project) Series 1995 DN
4.25%** 10/07/96 1,130 1,130,000
Berks County IDA RB (Lutheran Home at
Topton Project) Series 1995 DN
3.875%** 10/07/96 1,900 1,900,000
Berks County IDA RB (Richard J. Caron
Foundation Project) Series 1996 DN
3.875%** 10/02/96 2,000 2,000,000
Bucks County IDA Environmental
Improvement Refunding RB (USX Corp.
Project) Series 1995 MB
3.55% 11/01/96 1,360 1,360,000
Bucks County IDA RB (SHV Real Estate, Inc.
Project) Series 1985 DN
3.60%** 10/07/96 2,200 2,200,000
Bucks County IDA Refunding RB (Sundstrand
Corp. Project) Series 1991 DN
3.85%** 10/07/96 1,505 1,505,000
Cambria County IDA Resource Recovery
RB (Cambria Cogen Co. Project)
Series 1989V-1 DN
4.00%** 10/07/96 24,500 24,500,000
Cambria County IDA Resource Recovery
RB (Cambria Cogen Co. Project)
Series 1989V-2 DN
4.00%** 10/07/96 2,500 2,500,000
Cambria County IDA Resource Recovery
RB (Cambria Cogen Co. Project)
Series 1991V-1 DN
4.00%** 10/07/96 7,600 7,600,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1990A MB
3.70% 10/11/96 4,000 4,000,000
3.55% 11/15/96 1,000 1,000,000
3.60% 11/15/96 5,000 5,000,000
3.70% 12/13/96 1,055 1,055,000
3.75% 01/31/97 1,000 1,000,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1990B MB
3.70% 10/11/96 4,325 4,325,000
3.55% 11/15/96 400 400,000
3.70% 12/13/96 1,300 1,300,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1991 MB
3.70% 10/11/96 1,625 1,625,000
3.70% 10/18/96 300 300,000
3.55% 11/15/96 2,910 2,910,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1992A MB
3.70% 12/13/96 5,000 5,000,000
Cumberland County IDA IDRB (Lane
Enterprises, Inc. Project) Series 1994 DN
4.25%** 10/07/96 925 925,000
See accompanying notes to financial statements.
16
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Cumberland County Municipal Authority
RB (Presbyterian Homes Project)
Series 1993A DN
3.85%** 10/07/96 $ 6,000 $ 6,000,000
Delaware County IDA Airport Facilities
RB (United Parcel Service Project)
Series 1985 DN
3.85%** 10/01/96 1,200 1,200,000
Delaware County IDA Refunding PCRB
(PECO Energy Project)
Series 1988A MB
3.55% 11/08/96 4,200 4,200,000
3.65% 11/13/96 8,600 8,600,000
3.60% 12/13/96 2,750 2,750,000
Delaware County IDA Refunding PCRB
(PECO Energy Project)
Series 1993A DN
3.85%** 10/07/96 500 500,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984B DN
3.80%** 10/07/96 7,500 7,500,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984C DN
3.80%** 10/07/96 11,400 11,400,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984D DN
3.80%** 10/07/96 1,300 1,300,000
Emmaus General Authority RB Pooled
Loan Series 1989B DN
3.95%** 10/07/96 700 700,000
Emmaus General Authority RB Pooled
Loan Series 1989H-6 DN
3.95%** 10/07/96 1,600 1,600,000
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1984 DN
3.60%** 10/07/96 800 800,000
Lehigh County IDA PCRB (Allegheny Electric
Co-op, Inc. Project) Series 1985A DN
3.60%** 10/07/96 1,100 1,100,000
Lehigh County Sewer Authority RB
Series 1985B DN
3.80%** 10/07/96 2,170 2,170,000
Lehigh County Water Authority RB
Series 1984 DN
3.80%** 10/07/96 6,095 6,095,000
Littlestown IDA Refunding RB (Hanover
House Industries Project)
Series 1987 DN
3.85%** 10/07/96 2,000 2,000,000
Lower Gwynedd Township GO
Series 1996
TRAN
3.96% 12/31/96 500 500,431
Montgomery County Higher Education
and Health Authority Hospital RB
Series 1988 DN
3.80%** 10/07/96 3,200 3,200,000
Montgomery County IDA (PECO Energy
Project) Series 1994A MB
3.45% 10/01/96 2,300 2,300,000
3.55% 10/10/96 5,250 5,250,000
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Montgomery County IDA (PECO Energy
Project) Series 1994A MB
3.50% 11/15/96 $ 1,200 $ 1,200,000
Montgomery County IDA (PECO Energy
Project) Series 1994A TECP
3.65% 10/15/96 2,000 2,000,000
Montgomery County IDA IDRB (Three
Valley Square Associates Project)
Series 1987 DN
3.95%** 10/07/96 2,800 2,800,000
Montgomery County IDA Manufacturing
Facilities RB (H.P. Cadwallander, Inc.
Project) Series 1995 DN
4.25%** 10/07/96 1,000 1,000,000
Montgomery County IDA RB (One Valley
Square Project) Series 1985 DN
3.90%** 10/07/96 1,800 1,800,000
Moosic GO Series 1991 MB
6.75% 12/01/96 500 502,410
Northampton County IDA IDRB (Citizens
Utilities Project) Series 1991 MB
3.60% 10/10/96 2,000 2,000,000
3.55% 11/08/96 1,000 1,000,000
Northampton County IDA IDRB (Citizens
Utilities Project) Series 1996 DN
3.90%** 10/07/96 8,375 8,375,000
Northeastern Hospital and Education
Authority Health Care RB (Wyoming
Valley Health Care Project)
Series 1994A DN
3.80%** 10/07/96 12,000 12,000,000
Northeastern Hospital and Education
Authority RB (Allhealth Pooled
Financing Program) Series 1996 DN
3.95%** 10/07/96 12,000 12,000,000
Northumberland County IDA RB (Furman
Farms, Inc. Project) Series 1995A DN
4.25%** 10/07/96 1,225 1,225,000
Northumberland County IDA Resource
Recovery RB (Foster Wheeler Mt.
Carmel Project) Series 1987A DN
4.05%** 10/07/96 4,000 4,000,000
Northumberland County IDA Resource
Recovery RB (Foster Wheeler Mt.
Carmel Project) Series 1987B DN
4.05%** 10/07/96 590 590,000
Penn Hills Township GO
Series 1987A MB
7.50% 06/01/97 1,505 1,542,024
Pennsylvania Economic Development
Financing Authority Economic
Development RB (Wendt Dunnington
Co. Project) Series 1995 DN
4.00%** 10/07/96 1,165 1,165,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1986 DN
3.90%** 10/07/96 10,200 10,200,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1988 DN
3.90%** 10/07/96 2,900 2,900,000
See accompanying notes to financial statements.
17
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
PAR
MATURITY (000) VALUE
---------- ---------- ---------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986A DN
3.95%** 10/02/96 $ 7,100 $ 7,100,000
Pennsylvania Energy Development Authority
RB (Piney Creek Project)
Series 1986C DN
3.95%** 10/07/96 2,700 2,700,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1988A DN
3.90%** 10/07/96 1,300 1,300,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1988B DN
3.90%** 10/07/96 6,000 6,000,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1988C DN
3.90%** 10/07/96 1,700 1,700,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1988E DN
3.90%** 10/07/96 100 100,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1994A DN
3.90%** 10/02/96 10,350 10,350,000
Pennsylvania Higher Educational Facilities
Authority RB (University of Pennsylvania
Health Services Project)
Series 1996C DN
3.80%** 10/07/96 3,000 3,000,000
Pennsylvania Higher Educational Facilities
Authority Refunding RB (Carnegie
Mellon University Project)
Series 1995B DN
4.00%** 10/07/96 500 500,000
Pennyslvania Higher Educational Facilities
Authority College and University RB
(Pennsylvania College of Optometry
Project) Series 1996 DN
3.80%** 10/07/96 6,800 6,800,000
Philadelphia GO Series 1990 TECP
3.65% 10/01/96 10,000 10,000,000
Philadelphia GO TRAN Series 1996A
4.50% 06/30/97 1,000 1,004,089
Philadelphia Hospitals and Higher
Educational Facilities Authority Hospital
RB (Children's Hospital Project)
Series 1992 DN
4.00%** 10/01/96 3,050 3,050,000
Philadelphia IDA RB (30th Street Station
Project) Series 1987 DN
4.15%** 10/07/96 6,900 6,900,000
Philadelphia Redevelopment Authority
Multi-Family Housing RB (Franklin
Town Towers Project) Series 1985 DN
3.90%** 10/07/96 3,900 3,900,000
Sayre Health Care Facilities Authority RB
(VHA Capital Financing Project)
Series 1985F DN
3.80%** 10/07/96 1,100 1,100,000
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ---------- --------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Sayre Health Care Facilities Authority RB
(VHA Capital Financing Project)
Series 1985H DN
3.80%** 10/07/96 $ 890 $ 890,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985K DN
3.80%** 10/07/96 200 200,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985L DN
3.80%** 10/07/96 520 520,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985M DN
3.80%** 10/07/96 600 600,000
Schuylkill County IDA IDRB (Kaytee
Products, Inc. Project) Series 1995 DN
4.05%** 10/07/96 4,000 4,000,000
Schuylkill County IDA Resource Recovery
RB (Gilberton Power Project)
Series 1985 DN
3.95%** 10/07/96 10,000 10,000,000
Schuylkill County IDA Resource Recovery
RB (Northeastern Power Co. Project)
Series 1986B DN
3.90%** 10/01/96 25,700 25,700,000
Schuylkill County IDA Resource Recovery
RB (Westwood Energy Property
Project) Series 1985 DN
4.10%** 10/01/96 800 800,000
Selinsgrove Area School District GO
Series 1996 TRAN
4.35% 06/30/97 1,185 1,187,541
St. Mary Hospital Authority Hospital RB
(Franciscan Health System Project)
Series 1985B DN
3.85%** 10/01/96 800 800,000
University of Pittsburgh Higher Education
RB (University Capital Project)
Series 1989A DN
3.525%** 10/07/96 500 500,000
Venango IDA Resource Recovery RB
(Scrubgrass Project) Series 1990A MB
3.70% 10/18/96 300 300,000
3.55% 11/15/96 950 950,000
3.70% 11/15/96 2,150 2,150,000
Venango IDA Resource Recovery RB
(Scrubgrass Project) Series 1990B MB
3.70% 10/18/96 1,650 1,650,000
3.70% 12/13/96 3,715 3,715,000
3.70% 12/17/96 3,785 3,785,000
Venango IDA Resource Recovery RB
(Scrubgrass Project) Series 1993 MB
3.70% 10/18/96 7,175 7,175,000
3.55% 11/15/96 1,300 1,300,000
3.70% 02/10/97 1,210 1,210,000
Washington County Authority Lease RB
Series 1985 DN
3.95%** 10/02/96 14,600 14,600,000
Williamsport Area School District GO
Series 1996 TRAN
4.25% 06/30/97 3,000 3,004,282
See accompanying notes to financial statements.
18
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ---------- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
York County IDA IDRB (Allied Signal, Inc.
Project) Series 1993 DN
4.00%** 10/07/96 $ 1,000 $ 1,000,000
York General Authority Pooled Financing
RB Series 1996 DN
3.85%** 10/07/96 23,200 23,200,000
------------
469,230,777
------------
PUERTO RICO -- 3.4%
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
3.50%** 10/07/96 200 200,000
Puerto Rico Government Development
Bank TECP
3.40% 10/07/96 10,800 10,800,000
Puerto Rico Highway and Transportation
Authority Highway RB Series 1993X DN
3.50%** 10/07/96 100 100,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control
Facilities Authority RB (Ana G. Mendez
Foundation Project) Series 1985 DN
4.00%** 10/07/96 600 600,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control
Facilities Financing Authority RB
(Inter-American University Project)
Series 1985 DN
3.20%** 10/04/96 2,800 2,800,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control
Facilities Financing Authority RB
(Reynolds Metals Co. Project)
Series 1983 MB
3.80% 09/01/97 2,000 2,000,886
------------
16,500,886
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $485,731,663*) 99.9% 485,731,663
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 711,767
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 198,823,272
Institutional shares, 224,207,917
Service shares, and 63,423,855
Investor A shares outstanding) 100.0% $486,443,430
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($486,443,430 / 486,455,044) $1.00
=====
- ----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1996, and
maturities shown are the longer of the next interest readjustment date or
the date the principal owed can be recovered through demand.
See accompanying notes to financial statements.
19
<PAGE>
AS OF SEPTEMBER 30, 1996
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ---------- -------------
MUNICIPAL BONDS -- 99.7%
VIRGINIA -- 90.7%
Alexandria IDA Resource Recovery RB
(Alexandria Arlington Waste-to-Energy
Facility Project) Series 1986A DN
4.10%** 10/01/96 $ 400 $ 400,000
Alexandria Redevelopment and Housing
Authority Multi-Family Housing RB
(Buckingham Village Apartments
Project) Series 1996B DN
3.95%** 10/07/96 2,000 2,000,000
Alexandria Redevelopment and Housing
Authority Multi-Family Housing RB
(Crystal City Apartments Project)
Series 1990A DN
3.95%** 10/07/96 1,600 1,600,000
Capital Region Airport Commission
Airport RB (Richmond International
Airport Project) Series 1995C DN
3.80%** 10/07/96 2,000 2,000,000
Charles County IDA Exempt Facility RB
(Chambers Development of Virginia,
Inc. Project) Series 1989 DN
3.95%** 10/07/96 1,100 1,100,000
Charles County IDA Solid Waste Disposal
Facilities RB (Chambers Development of
Virginia, Inc. Project) Series 1996 DN
3.95%** 10/07/96 1,500 1,500,000
Chesterfield County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1985 MB
3.85% 01/15/97 500 500,000
Culpeper IDA Residential Care Facilities
RB (Baptist Homes Project)
Series 1992 DN
3.85%** 10/07/96 970 970,000
Fairfax County Economic Development
Authority RB (Foreman Development
Associates Project) Series 1996 DN
3.93%** 10/07/96 2,665 2,665,000
Fairfax County GO Series 1993C MB
4.00% 05/01/97 1,000 1,002,246
Fairfax County IDA RB (Fairfax Hospital
System Project) Series 1988A DN
3.90%** 10/02/96 1,100 1,100,000
Fairfax County IDA RB (Fairfax Hospital
System Project) Series 1988C DN
3.90%** 10/02/96 100 100,000
Falls Church IDA RB (Kaiser Permanente
Project) Series 1985 MB
3.70% 11/01/96 500 500,000
Greensville County IDA IDRB (Perdue
Farms, Inc. Project) Series 1986 DN
4.00%** 10/01/96 1,600 1,600,000
Halifax County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1992 DN
3.75%** 12/12/96 2,000 2,000,000
Hampton Redevelopment & Housing
Authority Multi-Family Housing Refunding
RB(Avalon at Hampton Project)
Series 1996A DN
3.75%** 10/02/96 4,060 4,060,000
Hampton Roads Regional Jail Authority
Regional Jail Facility RB Series 1996B DN
3.90%** 10/07/96 1,700 1,700,000
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ---------- ------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
King George County IDA Exempt Facility
RB (Birchwood Power Partners, L.P.
Project) Series 1995 DN
4.10%** 10/01/96 $2,600 $2,600,000
King George County IDA Solid Waste
Disposal Facility RB (Garnet of Virginia,
Inc. Project) Series 1996 DN
3.85%** 10/01/96 1,500 1,500,000
Louden County IDA Residential Care
Facility RB (Falcons Landing Project)
Series 1994B DN
4.35%** 10/01/96 1,200 1,200,000
Louisa County IDA RB Pooled Financing
Series 1995 DN
3.85%** 10/07/96 1,000 1,000,000
Louisa IDA PCRB (Virginia Electric &
Power Co.Project) Series 1984 MB
3.70% 10/17/96 1,000 1,000,000
Louisa IDA PCRB (Virginia Electric &
Power Co. Project) Series 1985 MB
3.50% 11/15/96 500 500,000
3.65% 01/31/97 100 100,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital Asset
Finance Program) Series 1985B DN
3.80%** 10/01/96 800 800,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital Asset
Finance Program) Series 1985C DN
3.80%** 10/07/96 500 500,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital Asset
Finance Program) Series 1985F DN
3.80%** 10/02/96 1,000 1,000,000
Peninsula Ports Authority of Virginia Coal
Terminal RB (Dominion Terminal Associates
Project) Series 1987D DN
3.95%** 10/01/96 1,905 1,905,000
Peninsula Ports Authority of Virginia Port
Facility RB (Shell Coal and Terminal Co.
Project) Series 1987 DN
3.75%** 10/01/96 2,500 2,500,000
Peninsula Ports Authority of Virginia Port
Facility Refunding RB (CSX Transportation,
Inc. Project) Series 1992 DN
3.55%** 10/10/96 1,000 1,000,000
Prince William County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1986 MB
3.85% 01/15/97 300 300,000
Richmond IDA RB (Halifax Paper Board Co.
Project) Series 1990 DN
4.00%** 10/07/96 510 510,000
Roanoke IDA Hospital RB (Carillon Health
System Project) Series 1995C DN
3.75%** 10/07/96 1,300 1,300,000
Roanoke IDA Hospital RB (Carillon Health
System Project) Series 1995D DN
3.75%** 10/07/96 1,070 1,070,000
Rockingham County IDA Higher Education
Facilities RB (Eastern Mennonite University
Project) Series 1995 DN
3.85%** 10/01/96 1,400 1,400,000
See accompanying notes to financial statements.
20
<PAGE>
AS OF SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- ----- ------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
South Hill IDA IDRB (South Hill Veneers Inc.
Project) Series 1987 DN
3.95%** 10/07/96 $ 300 $ 300,000
Virginia Housing Development Authority
Housing RB (AHC Service Corp.
Woodbury Park Project) Series 1987A DN
3.90%** 10/07/96 1,070 1,070,000
Virginia Small Business Financing Authority
IDRB (Coastal Development Group Project)
Series 1989 DN
4.00%** 10/07/96 195 195,000
Washington County IDA IDRB (MMFG Project)
Series 1996 DN
3.85%** 10/01/96 1,825 1,825,000
York County IDA PCRB (Virginia Electric &
Power Co. Project) Series 1985 MB
3.85% 01/15/97 200 200,000
-----------
48,572,246
-----------
PUERTO RICO -- 9.0%
Puerto Rico Highway and Transportation
Authority Highway RB Series 1993X DN
3.50%** 10/01/96 200 200,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Inter-American
University Project) Series 1988 MB
3.20% 10/04/96 2,500 2,500,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Key
Pharmaceuticals Project) Series 1983 TECP
3.80% 12/01/96 1,500 1,500,786
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Reynolds Metals
Co. Project) Series 1983 MB
3.80% 09/01/97 600 600,000
-----------
4,800,786
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $53,373,032*) 99.7% 53,373,032
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.3% 147,590
------ -----------
NET ASSETS (Equivalent to $1.00
per share based on 38,552,810
Institutional shares and 14,967,982
Service shares outstanding) 100.0% $53,520,622
====== ===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL AND
SERVICE SHARE
($53,520,622 / 53,520,792) $1.00
=====
- ----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1996, and
maturities shown are the longer of the next interest readjustment date or
the date the principal owed can be recovered through demand.
INVESTMENT ABBREVIATIONS
BAN ................................Bond Anticipation Note
DN ............................................Demand Note
GO .....................................General Obligation
IDA ......................Industrial Development Authority
IDR ........................Industrial Development Revenue
IDRB ..................Industrial Development Revenue Bond
MB .........................................Municipal Bond
PCR .............................Pollution Control Revenue
PCRB .......................Pollution Control Revenue Bond
RAN .............................Revenue Anticipation Note
RB ...........................................Revenue Bond
TAN .................................Tax Anticipation Note
TECP ..........................Tax-Exempt Commercial Paper
TRAN ....................Tax and Revenue Anticipation Note
See accompanying notes to financial statements.
21
<PAGE>
FOR THE PERIOD ENDED SEPTEMBER 30, 1996
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
NEW JERSEY MUNICIPAL
MONEY MARKET PORTFOLIO
-----------------------------
FOR THE FOR THE
U.S. TREASURY MUNICIPAL PERIOD 2/1/96 PERIOD 3/1/95
MONEY MARKET MONEY MARKET MONEY MARKET THROUGH THROUGH
PORTFOLIO PORTFOLIO PORTFOLIO 9/30/96 1/31/96
------------ ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ...................................... $132,608,905 $63,498,298 $12,535,303 $1,857,843 $1,715,966
------------ ----------- ----------- ---------- ----------
EXPENSES:
Investment advisory fee ....................... 9,874,178 5,136,095 1,538,868 245,028 179,660
Administration fee ............................ 3,476,736 1,884,424 600,233 100,515 80,404
Custodian fee ................................. 377,881 222,081 82,292 15,838 8,188
Transfer agent fee ............................ 797,521 394,772 138,026 28,268 27,407
Service fees .................................. 4,826,484 2,992,274 884,260 123,857 7,552
Distribution fees ............................. 448,260 30,072 1,024 51,122 2,997
Legal and audit ............................... 218,671 114,344 28,360 14,046 6,831
Printing ...................................... 184,050 69,031 20,111 5,040 3,488
Registration fees and expenses ................ 356,649 130,385 75,363 15,507 5,012
Organization .................................. -- -- -- 5,312 10,845
Trustees' fees and officer's salary ........... 52,333 23,265 6,089 1,258 2,222
Other ......................................... 122,968 49,706 9,568 1,051 (7,776)
------------ ----------- ----------- ---------- ----------
20,735,731 11,046,449 3,384,194 606,842 326,830
Less fees voluntarily waived and
expenses reimbursed ......................... (8,620,797) (4,646,894) (1,513,716) (264,950) (17,527)
------------ ----------- ----------- ---------- ----------
Total expenses .............................. 12,114,934 6,399,555 1,870,478 341,892 309,303
------------ ----------- ----------- ---------- ----------
Net investment income ......................... 120,493,971 57,098,743 10,664,825 1,515,951 1,406,663
------------ ----------- ----------- ---------- ----------
Net realized gain (loss)
on investments .............................. 143,906 (262,952) 39,648 529 (285)
------------ ----------- ----------- ---------- ----------
Net increase in net assets resulting from
operations .................................. $120,637,877 $56,835,791 $10,704,473 $1,516,480 $1,406,378
============ =========== =========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
FOR THE PERIOD ENDED SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
<TABLE>
<CAPTION>
NORTH CAROLINA OHIO PENNSYLVANIA VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ...................................... $3,406,073 $2,712,738 $18,355,910 $1,495,392
---------- ---------- ----------- ----------
EXPENSES:
Investment advisory fee ....................... 427,672 324,952 2,284,553 187,709
Administration fee ............................ 165,818 124,647 888,686 73,560
Custodian fee ................................. 28,565 22,882 104,013 18,291
Transfer agent fee ............................ 45,167 24,941 191,060 28,046
Service fees .................................. 16,183 136,437 675,009 28,006
Distribution fees ............................. 337 13,720 254,114 --
Legal and audit ............................... 12,801 9,914 49,459 8,119
Printing ...................................... 2,706 13,394 24,290 1,650
Registration fees and expenses ................ 13,463 12,482 58,672 14,764
Organization .................................. 5,691 4,740 4,564 6,515
Trustees' fees and officer's salary ........... 1,608 1,201 9,005 703
Other ......................................... 1,976 2,321 10,781 1,552
---------- ---------- ----------- ----------
721,987 691,631 4,554,206 368,915
Less fees voluntarily waived and
expenses reimbursed ......................... (467,211) (331,488) (2,148,182) (280,741)
---------- ---------- ----------- ----------
Total expenses .............................. 254,776 360,143 2,406,024 88,174
---------- ---------- ----------- ----------
Net investment income ......................... 3,151,297 2,352,595 15,949,886 1,407,218
---------- ---------- ----------- ----------
Net realized gain (loss)
on investments .............................. (124) (5,840) (1,626) (125)
---------- ---------- ----------- ----------
Net increase in net assets resulting from
operations .................................. $3,151,173 $2,346,755 $15,948,260 $1,407,093
========== ========== =========== ==========
</TABLE>
23
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
COMPASS CAPITAL FUNDS
<TABLE>
<CAPTION>
U.S. TREASURY MUNICIPAL
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
------------------------------ ---------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/96 9/30/95 9/30/96 9/30/95 9/30/96 9/30/95
-------------- -------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ............. $ 120,493,971 $ 79,182,033 $ 57,098,743 $ 33,316,785 $ 10,664,825 $ 8,384,671
Net realized gain (loss) on
investments .................... 143,906 (21,648) (262,952) 6,023 39,648 (12,355)
-------------- -------------- -------------- ------------ ------------ ------------
Net increase in net assets
resulting from operations ......... 120,637,877 79,160,385 56,835,791 33,322,808 10,704,473 8,372,316
-------------- -------------- -------------- ------------ ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Shares .............. (35,226,973) (37,154,478) (8,587,203) (5,391,744) (1,608,121) (1,414,111)
Service Shares .................... (80,301,220) (41,703,939) (48,192,461) (27,836,761) (9,049,712) (6,969,678)
Investor A Shares ................. (4,962,819) (323,561) (319,079) (88,280) (6,992) (882)
Investor B Shares ................. (2,959) (55) -- -- -- --
-------------- -------------- -------------- ------------ ------------ ------------
Total distribution from net
investment income ............... (120,493,971) (79,182,033) (57,098,743) (33,316,785) (10,664,825) (8,384,671)
-------------- -------------- -------------- ------------ ------------ ------------
Distributions to shareholder from:
Net realized gains:
Institutional Shares ................ -- -- (2,194) -- -- --
Service Shares ...................... -- -- (8,923) -- -- --
Investor A Shares ................... -- -- (28) -- -- --
Investor B Shares .................. -- -- -- -- -- --
-------------- -------------- -------------- ------------ ------------ ------------
Total distribution from net
realized gains .................. -- -- (11,145) -- -- --
-------------- -------------- -------------- ------------ ------------ ------------
Total distributions to
shareholders .................... (120,493,971) (79,182,033) (57,109,888) (33,316,785) (10,664,825) (8,384,671)
-------------- -------------- -------------- ------------ ------------ ------------
Capital share transactions ............ 466,501,738 775,145,746 460,767,915 260,770,269 (12,063,434) 155,432,888
-------------- -------------- -------------- ------------ ------------ ------------
Total increase (decrease) in
net assets ...................... 466,645,644 775,124,098 460,493,818 260,776,292 (12,023,786) 155,420,533
Net assets:
Beginning of period ................. 1,858,385,746 1,083,261,648 672,784,048 412,007,756 319,427,288 164,006,755
-------------- -------------- -------------- ------------ ------------ ------------
End of period ....................... $2,325,031,390 $1,858,385,746 $1,133,277,866 $672,784,048 $307,403,502 $319,427,288
============== ============== ============== ============ ============ ============
</TABLE>
24
<PAGE>
COMPASS CAPITAL FUNDS
<TABLE>
<CAPTION>
NEW JERSEY MUNICIPAL NORTH CAROLINA MUNICIPAL
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
--------------------------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
PERIOD 2/1/96 PERIOD 3/1/95 YEAR ENDED YEAR ENDED YEAR ENDED
THROUGH 9/30/96 THROUGH 1/31/96 2/28/95 9/30/96 9/30/95
--------------- --------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ............. $ 1,515,951 $ 1,406,663 $ 975,000 $ 3,151,297 $ 3,337,460
Net realized gain (loss) on
investments .................... 529 (285) (7,000) (124) 115
------------ ------------ ----------- ------------ ------------
Net increase in net assets
resulting from operations ......... 1,516,480 1,406,378 968,000 3,151,173 3,337,575
------------ ------------ ----------- ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Shares .............. (32,970) (5,649) -- (2,984,694) (3,322,447)
Service Shares .................... (1,161,646) (1,388,324)* (975,000)* (164,443) (14,791)
Investor A Shares ................. (321,335) (22,768) -- (2,160) (222)
Investor B Shares ................. -- -- -- -- --
------------ ------------ ----------- ------------ ------------
Total distribution from net
investment income ............... (1,515,951) (1,416,741) (975,000) (3,151,297) (3,337,460)
------------ ------------ ----------- ------------ ------------
Distributions to shareholder from:
Net realized gains:
Institutional Shares ................ -- -- -- -- --
Service Shares ...................... -- -- -- -- --
Investor A Shares ................... -- -- -- -- --
Investor B Shares .................. -- -- -- -- --
------------ ------------ ----------- ------------ ------------
Total distribution from net
realized gains .................. -- -- -- -- --
------------ ------------ ----------- ------------ ------------
Total distributions to
shareholders .................... (1,515,951) (1,416,741) (975,000) (3,151,297) (3,337,460)
------------ ------------ ----------- ------------ ------------
Capital share transactions ............ 3,251,806 39,215,073 4,209,000 41,104,444 8,893,514
------------ ------------ ----------- ------------ ------------
Total increase (decrease) in
net assets ...................... 3,252,335 39,204,710 4,202,000 41,104,320 8,893,629
Net assets:
Beginning of period ................. 82,814,710 43,610,000 39,408,000 78,566,526 69,672,897
------------ ------------ ----------- ------------ ------------
End of period ....................... $ 86,067,045 $ 82,814,710 $43,610,000 $119,670,846 $ 78,566,526
============ ============ =========== ============ ============
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
OHIO MUNICIPAL PENNSYLVANIA MUNICIPAL VIRGINIA MUNICIPAL
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
-------------------------- -------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/96 9/30/95 9/30/96 9/30/95 9/30/96 9/30/95
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ............. $ 2,352,595 $ 2,248,767 $ 15,949,886 $ 12,002,981 $ 1,407,218 $ 700,255
Net realized gain (loss) on
investments .................... (5,840) -- (1,626) (1,459) (125) (66)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations ......... 2,346,755 2,248,767 15,948,260 12,001,522 1,407,093 700,189
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Shares .............. (821,771) (614,141) (7,707,679) (7,756,121) (1,123,148) (685,237)
Service Shares .................... (1,439,522) (1,633,831) (6,766,857) (4,239,580) (284,070) (15,018)
Investor A Shares ................. (91,302) (795) (1,475,350) (7,280) -- --
Investor B Shares ................. -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distribution from net
investment income ............... (2,352,595) (2,248,767) (15,949,886) (12,002,981) (1,407,218) (700,255)
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholder from:
Net realized gains:
Institutional Shares ................ -- -- -- -- -- --
Service Shares ...................... -- -- -- -- -- --
Investor A Shares ................... -- -- -- -- -- --
Investor B Shares .................. -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distribution from net
realized gains .................. -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions to
shareholders .................... (2,352,595) (2,248,767) (15,949,886) (12,002,981) (1,407,218) (700,255)
------------ ------------ ------------ ------------ ------------ ------------
Capital share transactions ............ 10,535,788 18,996,645 104,541,639 163,103,796 28,291,131 11,398,564
------------ ------------ ------------ ------------ ------------ ------------
Total increase (decrease) in
net assets ...................... 10,529,948 18,996,645 104,540,013 163,102,337 28,291,006 11,398,498
Net assets:
Beginning of period ................. 73,611,171 54,614,526 381,903,417 218,801,080 25,229,616 13,831,118
------------ ------------ ------------ ------------ ------------ ------------
End of period ....................... $ 84,141,119 $ 73,611,171 $486,443,430 $381,903,417 $ 53,520,622 $ 25,229,616
============ ============ ============ ============ ============ ============
<FN>
- ----------------
* Service Shares includes all activity of the prior class of shares for all
periods before January 13, 1996, the date of the merger.
</FN>
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
FOR THE PERIOD ENDED SEPTEMBER 30, 1996
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
MONEY MARKET PORTFOLIO
- ----------------------
INSTITUTIONAL CLASS
9/30/96 $1.00 $0.0533 $(0.0533) $0.00 $1.00 5.46% $ 587,730
9/30/95 1.00 0.0564 (0.0564) 0.00 1.00 5.79 654,157
9/30/94 1.00 0.0359 (0.0359) 0.00 1.00 3.64 502,972
8/2/93 1 through
9/30/93 1.00 0.0054 (0.0054) 0.00 1.00 0.54 435,586
SERVICE CLASS
9/30/96 $1.00 $0.0503 $(0.0503) $0.00 $1.00 5.15% $1,575,064
9/30/95 1.00 0.0534 (0.0534) 0.00 1.00 5.48 1,194,017
9/30/94 1.00 0.0333 (0.0333) 0.00 1.00 3.37 575,948
9/30/93 1.00 0.0274 (0.0274) 0.00 1.00 2.77 415,328
9/30/92 1.00 0.0391 (0.0391) 0.00 1.00 4.05 838,012
INVESTOR A CLASS
9/30/96 $1.00 $0.0485 $(0.0485) $0.00 $1.00 4.96% $ 162,099
9/30/95 1.00 0.0511 (0.0511) 0.00 1.00 5.23 10,185
9/30/94 1.00 0.0308 (0.0308) 0.00 1.00 3.12 4,342
1/13/93 1 through
9/30/93 1.00 0.0188 (0.0188) 0.00 1.00 1.89 49
INVESTOR B CLASS
9/30/96 $1.00 $0.0426 $(0.0426) $0.00 $1.00 4.34% $ 138
9/15/95 1 through
9/30/95 1.00 0.0020 (0.0020) 0.00 1.00 0.20 27
- ------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
- ------------------------------------
INSTITUTIONAL CLASS
9/30/96 $1.00 $0.0519 $(0.0519) $0.00 $1.00 5.32% $ 167,193
9/30/95 1.00 0.0555 (0.0555) 0.00 1.00 5.69 120,540
9/30/94 1.00 0.0357 (0.0357) 0.00 1.00 3.63 37,519
8/2/93 1 through
9/30/93 1.00 0.0049 (0.0049) 0.00 1.00 0.49 13,513
SERVICE CLASS
9/30/96 $1.00 $0.0489 $(0.0489) $0.00 $1.00 5.00% $ 955,454
9/30/95 1.00 0.0525 (0.0525) 0.00 1.00 5.38 550,959
9/30/94 1.00 0.0331 (0.0331) 0.00 1.00 3.36 372,883
9/30/93 1.00 0.0269 (0.0269) 0.00 1.00 2.72 185,400
9/30/92 1.00 0.0394 (0.0394) 0.00 1.00 4.01 160,269
INVESTOR A CLASS
9/30/96 $1.00 $0.0467 $(0.0467) $0.00 $1.00 4.77% $ 10,630
9/30/95 1.00 0.0501 (0.0501) 0.00 1.00 5.13 1,285
9/30/94 1.00 0.0309 (0.0309) 0.00 1.00 3.11 1,656
1/14/93 1 through
9/30/93 1.00 0.0183 (0.0183) 0.00 1.00 1.85 50
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
INSTITUTIONAL CLASS
9/30/96 $1.00 $0.0339 $(0.0339) $0.00 $1.00 3.41% $ 43,936
9/30/95 1.00 0.0364 (0.0364) 0.00 1.00 3.70 53,778
9/30/94 1.00 0.0246 (0.0246) 0.00 1.00 2.48 30,608
8/2/93 1 through
9/30/93 1.00 0.0040 (0.0040) 0.00 1.00 0.40 39,148
</TABLE>
See accompanying notes to financial statements.
26
FOR THE PERIOD ENDED SEPTEMBER 30, 1996
COMPASS CAPITAL FUNDS
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
ASSETS WAIVERS) ASSETS WAIVERS)
======================================================================================================
<S> <C> <C> <C> <C>
- ----------------------
MONEY MARKET PORTFOLIO
- ----------------------
INSTITUTIONAL CLASS
9/30/96 0.29% 0.65% 5.34% 4.98%
9/30/95 0.27 0.64 5.66 5.28
9/30/94 0.25 0.66 3.64 3.23
8/2/93 1 through
9/30/93 0.27 2 0.38 2 3.01 2 2.90 2
SERVICE CLASS
9/30/96 0.59% 0.95% 5.00% 4.64%
9/30/95 0.57 0.94 5.35 4.98
9/30/94 0.51 0.92 3.35 2.95
9/30/93 0.59 0.70 2.73 2.62
9/30/92 0.61 0.66 3.86 3.81
INVESTOR A CLASS
9/30/96 0.74% 1.10% 4.81% 4.45%
9/30/95 0.81 1.19 5.15 4.78
9/30/94 0.75 1.16 3.39 2.98
1/13/93 1 through
9/30/93 0.67 2 0.78 2 2.62 2 2.51 2
INVESTOR B CLASS
9/30/96 1.36% 1.73% 4.18% 3.82%
9/15/95 1 through
9/30/95 1.34 2 1.72 2 4.582 4.20 2
- ------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
- ------------------------------------
INSTITUTIONAL CLASS
9/30/96 0.29% 0.69% 5.18% 4.78%
9/30/95 0.27 0.69 5.64 5.22
9/30/94 0.25 0.70 3.69 3.24
8/2/93 1 through
9/30/93 0.25 0.38 2 3.01 2 2.88 2
SERVICE CLASS
9/30/96 0.59% 0.99% 4.84% 4.45%
9/30/95 0.57 0.98 5.27 4.85
9/30/94 0.52 0.97 3.42 2.97
9/30/93 0.60 0.73 2.68 2.55
9/30/92 0.62 0.67 3.91 3.86
INVESTOR A CLASS
9/30/96 0.79% 1.19% 4.60% 4.20%
9/30/95 0.80 1.21 5.03 4.62
9/30/94 0.75 1.20 3.60 3.14
1/14/93 1 through
9/30/93 0.65 2 0.78 2 2.57 2 2.44 2
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
INSTITUTIONAL CLASS
9/30/96 0.29% 0.73% 3.37% 2.93%
9/30/95 0.27 0.71 3.64 3.20
9/30/94 0.25 0.73 2.48 2.01
8/2/93 1 through
9/30/93 0.25 2 0.36 2 2.45 2 2.34 2
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
FOR THE PERIOD ENDED SEPTEMBER 30, 1996
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------------------
SERVICE CLASS
9/30/96 $1.00 $0.0309 $(0.0309) $0.00 $1.00 3.10% $261,617
9/30/95 1.00 0.0334 (0.0334) 0.00 1.00 3.39 265,629
9/30/94 1.00 0.0219 (0.0219) 0.00 1.00 2.20 133,358
9/30/93 1.00 0.0205 (0.0205) 0.00 1.00 2.10 93,937
9/30/92 1.00 0.0281 (0.0281) 0.00 1.00 2.85 125,152
INVESTOR A CLASS
9/30/96 $1.00 $0.0288 $(0.0288) $0.00 $1.00 2.88% $ 1,851
9/30/95 1.00 0.0311 (0.0311) 0.00 1.00 3.15 20
9/30/94 1.00 0.0193 (0.0193) 0.00 1.00 1.95 41
11/02/92 1 through
9/30/93 1.00 0.0181 (0.0181) 0.00 1.00 1.83 15
- -------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
2/1/96 through
9/30/96 $1.00 $0.0207 $(0.0207) $0.00 $1.00 2.09% $ 614
1/16/96 1 through
1/31/96 1.00 0.0000 (0.0000) 0.00 1.00 3.07 4,195
SERVICE CLASS
2/1/96 through
9/30/96 $1.00 $0.0187 $(0.0187) $0.00 $1.00 1.89% $ 68,139
3/1/95 through
1/31/96 1.00 0.0300 (0.0300) 0.00 1.00 3.23 56,958
2/28/95 1.00 0.0200 (0.0200) 0.00 1.00 2.46 43,610
2/28/94 1.00 0.0200 (0.0200) 0.00 1.00 1.79 39,408
2/28/93 1.00 0.0200 (0.0200) 0.00 1.00 2.19 38,836
7/1/91 1 through
2/29/92 1.00 0.0200 (0.0200) 0.00 1.00 3.53 35,005
INVESTOR A CLASS
2/1/96 through
9/30/96 $1.00 $0.0175 $(0.0175) $0.00 $1.00 1.76% $ 17,314
1/16/96 1 through
1/31/96 1.00 0.0000 (0.0000) 0.00 1.00 2.66 21,662
- -----------------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------
INSTITUTIONAL CLASS
9/30/96 $1.00 $0.0338 $(0.0338) $0.00 $1.00 3.43% $112,097
9/30/95 1.00 0.0359 (0.0359) 0.00 1.00 3.65 76,673
9/30/94 1.00 0.0249 (0.0249) 0.00 1.00 2.52 69,673
5/4/93 1 through
9/30/93 1.00 0.0097 (0.0097) 0.00 1.00 0.97 34,135
SERVICE CLASS
9/30/96 $1.00 $0.0308 $(0.0308) $0.00 $1.00 3.12% $ 7,463
11/1/94 4 through
9/30/95 1.00 0.0305 (0.0305) 0.00 1.00 3.11 1,841
4/29/94 1 through
9/30/94 1.00 0.0099 (0.0099) 0.00 1.00 0.99 -- 3
INVESTOR A CLASS
9/30/96 $1.00 $0.0286 $(0.0286) $0.00 $1.00 2.90% $ 111
2/14/95 1 through
9/30/95 1.00 0.0194 (0.0194) 0.00 1.00 1.95 53
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
Share Outstanding Throughout the Period
COMPASS CAPITAL FUNDS
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
ASSETS WAIVERS) ASSETS WAIVERS)
=======================================================================================================
<S> <C> <C> <C> <C>
- --------------------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------------------
SERVICE CLASS
9/30/96 0.59% 1.03% 3.08% 2.64%
9/30/95 0.57 1.01 3.35 2.91
9/30/94 0.51 0.99 2.18 1.71
9/30/93 0.61 0.72 2.02 1.91
9/30/92 0.63 0.68 2.78 2.73
INVESTOR A CLASS
9/30/96 0.77% 1.21% 2.80% 2.36%
9/30/95 0.79 1.23 3.08 2.64
9/30/94 0.75 1.23 2.05 1.58
11/02/92 1 through
9/30/93 0.72 2 0.83 2 2.23 2 2.12 2
- -------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
2/1/96 through
9/30/96 0.29% 2 0.78% 2 3.07% 2 2.58% 2
1/16/96 1 through
1/31/96 0.29 2 0.78 2 3.07 2 2.58 2
SERVICE CLASS
2/1/96 through
9/30/96 0.59% 2 1.08% 2 2.82% 2 2.33% 2
3/1/95 through
1/31/96 0.70 2 0.74 2 3.17 2 3.13 2
2/28/95 0.63 0.70 2.46 2.39
2/28/94 0.65 0.72 1.77 1.70
2/28/93 0.73 0.76 2.17 2.14
7/1/91 1 through
2/29/92 0.47 2 0.62 2 3.44 2 3.29 2
INVESTOR A CLASS
2/1/96 through
9/30/96 0.78% 2 1.27% 2 2.63% 2 2.15% 2
1/16/96 1 through
1/31/96 0.71 2 1.20 2 2.66 2 2.17 2
- -----------------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------
INSTITUTIONAL CLASS
9/30/96 0.25% 0.74% 3.33% 2.84%
9/30/95 0.21 0.74 3.61 3.08
9/30/94 0.10 0.76 2.53 1.87
5/4/93 1 through
9/30/93 0.10 2 0.81 2 2.35 2 1.64 2
SERVICE CLASS
9/30/96 0.55% 1.04% 3.06% 2.56%
11/1/94 4 through
9/30/95 0.55 2 1.08 2 3.34 2 2.81 2
4/29/94 1 through
9/30/94 0.36 2 1.02 2 2.54 2 1.87 2
INVESTOR A CLASS
9/30/96 0.76% 1.25% 2.83% 2.34%
2/14/95 1 through
9/30/95 0.83 2 1.36 2 3.05 2 2.52 2
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
FOR THE PERIOD ENDED SEPTEMBER 30, 1996
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------
OHIO MUNICIPAL MONEY MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
9/30/96 $1.00 $0.0346 $(0.0346) $0.00 $1.00 3.52% $ 32,944
9/30/95 1.00 0.0363 (0.0363) 0.00 1.00 3.69 23,679
9/30/94 1.00 0.0252 (0.0252) 0.00 1.00 2.55 10,521
6/10/93 1 through
9/30/93 1.00 0.0073 (0.0073) 0.00 1.00 0.73 12,026
SERVICE CLASS
9/30/96 $1.00 $0.0316 $(0.0316) $0.00 $1.00 3.21% $ 45,525
9/30/95 1.00 0.0333 (0.0333) 0.00 1.00 3.38 49,857
9/30/94 1.00 0.0225 (0.0225) 0.00 1.00 2.27 44,066
6/1/93 1 through
9/30/93 1.00 0.0074 (0.0074) 0.00 1.00 0.75 15,239
INVESTOR A CLASS
9/30/96 $1.00 $0.0293 $(0.0293) $0.00 $1.00 2.98% $ 5,672
9/30/95 1.00 0.0310 (0.0310) 0.00 1.00 3.15 75
10/5/93 1 through
9/30/94 1.00 0.0199 (0.0199) 0.00 1.00 2.01 28
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- ---------------------------------------------
INSTITUTIONAL CLASS
9/30/96 $1.00 $0.0334 $(0.0334) $0.00 $1.00 3.40% $198,822
9/30/95 1.00 0.0355 (0.0355) 0.00 1.00 3.61 233,413
9/30/94 1.00 0.0247 (0.0247) 0.00 1.00 2.49 158,102
6/1/93 1 through
9/30/93 1.00 0.0078 (0.0078) 0.00 1.00 0.78 2,242
SERVICE CLASS
9/30/96 $1.00 $0.0304 $(0.0304) $0.00 $1.00 3.04% $224,197
9/30/95 1.00 0.0325 (0.0325) 0.00 1.00 3.33 147,739
9/30/94 1.00 0.0221 (0.0221) 0.00 1.00 2.24 60,560
6/11/93 1 through
9/30/93 1.00 0.0074 (0.0074) 0.00 1.00 0.74 8,919
INVESTOR A CLASS
9/30/96 $1.00 $0.0281 $(0.0281) $0.00 $1.00 2.90% $ 63,424
9/30/95 1.00 0.0302 (0.0302) 0.00 1.00 3.06 750
12/28/93 1 through
9/30/94 1.00 0.0153 (0.0153) 0.00 1.00 1.58 139
- -----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------
INSTITUTIONAL CLASS
9/30/96 $1.00 $0.0348 $(0.0348) $0.00 $1.00 3.54% $ 38,553
9/30/95 1.00 0.0368 (0.0368) 0.00 1.00 3.74 24,409
7/25/94 1 through
9/30/94 1.00 0.0053 (0.0053) 0.00 1.00 0.53 13,831
SERVICE CLASS
9/30/96 $1.00 $0.0318 $(0.0318) $0.00 $1.00 3.25% $ 14,968
10/11/94 1 through
9/30/95 1.00 0.0330 (0.0330) 0.00 1.00 3.35 821
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
For a Share Outstanding Throughout the Period
COMPASS CAPITAL FUNDS
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
ASSETS WAIVERS ASSETS WAIVERS
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- -------------------------------------------
OHIO MUNICIPAL MONEY MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
9/30/96 0.29% 0.75% 3.47% 3.01%
9/30/95 0.27 0.73 3.66 3.20
9/30/94 0.13 0.77 2.56 1.93
6/10/93 1 through
9/30/93 0.10 2 0.83 2 2.45 2 1.72 2
SERVICE CLASS
9/30/96 0.59% 1.05% 3.17% 2.71%
9/30/95 0.57 1.03 3.35 2.89
9/30/94 0.40 1.04 2.29 1.65
6/1/93 1 through
9/30/93 0.23 2 0.96 2 2.23 2 1.50 2
INVESTOR A CLASS
9/30/96 0.79% 1.25% 2.88% 2.42%
9/30/95 0.80 1.26 3.02 2.56
10/5/93 1 through
9/30/94 0.62 2 1.26 2 1.94 2 1.30 2
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- ---------------------------------------------
INSTITUTIONAL CLASS
9/30/96 0.29% 0.71% 3.34% 2.92%
9/30/95 0.26 0.68 3.54 3.12
9/30/94 0.16 0.73 2.64 2.07
6/1/93 1 through
9/30/93 0.09 2 0.97 2 2.15 2 1.27 2
SERVICE CLASS
9/30/96 0.59% 1.01% 3.02% 2.59%
9/30/95 0.57 0.99 3.29 2.87
9/30/94 0.42 0.99 2.31 1.75
6/11/93 1 through
9/30/93 0.32 2 1.20 2 2.42 2 1.54 2
INVESTOR A CLASS
9/30/96 0.81% 1.23% 2.81% 2.39%
9/30/95 0.82 1.24 3.03 2.61
12/28/93 1 through
9/30/94 0.65 2 1.22 2 2.11 2 1.54 2
- -----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------
INSTITUTIONAL CLASS
9/30/96 0.14% 0.82% 3.47% 2.79%
9/30/95 0.10 0.95 3.71 2.86
7/25/94 1 through
9/30/94 0.10 2 1.02 2 2.89 2 1.97 2
SERVICE CLASS
9/30/96 0.45% 1.12% 3.05% 2.38%
10/11/94 1 through
9/30/95 0.40 2 1.25 2 3.50 2 2.65 2
<FN>
1 Commencement of operations of share class.
2 Annualized.
3 There were no Service Shares outstanding as of September 30, 1994.
4 Reissuance of Shares.
</FN>
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Compass Capital FundsSM ("the Fund") (formerly The PNC(REGISTRATION MARK)
Fund) was organized on December 22, 1988 as a Massachusetts business trust and
is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund currently has 29
publicly-offered portfolios, eight of which are included in these financial
statements (the "Portfolios"). Each Portfolio is authorized to issue an
unlimited number of shares with a par value of $0.001. Portfolios of the Fund
offer as many as five classes of shares. Shares of all classes of a Portfolio
represent equal pro rata interests in such Portfolio, except that each class
bears different expenses which reflect the difference in the range of services
provided to them. The following table provides a list of the Portfolios included
in this report along with their respective class-specific fee arrangements as
provided under the Fund's Amended and Restated Distribution and Service Plan
(the "Plan"). Fees are expressed as a percentage of average daily net asset
values of the respective classes.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Share Classes
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Service Investor A Investor B Investor C
- ------------------------------------------------------------------------------------------------------------------------------------
Contractual Actual Contractual Actual Contractual Actual Contractual Actual Contractual Actual
Fees Fees (4) Fees (1) Fees (4) Fees (2) Fees (4) Fees (3) Fees (4) Fees (3) Fees (4)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money
Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Money
Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Money
Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) -- the maximum annual contractual fees are comprised of a .15% service fee
and .15% shareholder processing fee.
(2) -- the maximum annual contractual fees are comprised of a .10% distribution
fee, .25% service fee and .15% shareholder processing fee.
(3) -- the maximum annual contractual fees are comprised of a .75% distribution
fee, .25% service fee and .15% shareholder processing fee.
(4) -- the actual fees are as of September 30, 1996.
</FN>
</TABLE>
In addition, Institutional and Service shares bear a Transfer Agent fee at an
annual rate not to exceed .03% and Investor A, Investor B and Investor C shares
bear a Transfer Agent fee at an annual rate not to exceed .10% of the average
daily net asset of such respective classes.
(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires the use of management estimates. Actual results could differ from these
estimates.
SECURITY VALUATION -- Portfolio securities are valued under the amortized
cost method which approximates current market value. Under this method,
securities are valued at cost when purchased and thereafter, a constant
proportionate amortization of any discount or premium is recorded until the
maturity of the security. Regular review and monitoring of the valuation is
performed in an attempt to avoid dilution or other unfair results to
shareholders. The Fund seeks to maintain the net asset value per share of each
Portfolio at $1.00.
DIVIDENDS TO SHAREHOLDERS -- Dividends from net investment income are
declared daily and paid monthly. Net realized capital gains, if any, will be
distributed at least annually.
FEDERAL TAXES -- No provision is made for federal taxes as it is the Fund's
intention to have each Portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from federal income and excise taxes.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
federal
32
<PAGE>
COMPASS CAPITAL FUNDS
income tax purposes. Interest income is recorded on the accrual basis. Expenses
not directly attributable to a specific Portfolio or class are allocated among
all of the Portfolios or classes of the Fund based on their relative net assets.
REPURCHASE AGREEMENTS -- Money market instruments may be purchased from
banks and non-bank dealers subject to the seller's agreement to repurchase them
at an agreed upon date and price. Collateral for repurchase agreements may have
longer maturities than the maximum permissible remaining maturity of portfolio
investments. The seller will be required on a daily basis to maintain the value
of the securities subject to the agreement at not less than the repurchase
price. The agreements are conditioned upon the collateral being deposited under
the Federal Reserve book-entry system or held in a separate account by the
Fund's custodian or an authorized securities depository.
ORGANIZATION COSTS -- Costs incurred by each Portfolio in connection with
its organization, registration and initial public offering have been deferred
and are being amortized using the straight-line method over a five-year period
beginning on the date on which each Portfolio commenced its investment
activities.
(B) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, PNC Asset Management Group,
Inc. ("PAMG"), a wholly-owned subsidiary of PNC Bank, National Association ("PNC
Bank"), serves as investment adviser for all the Portfolios. PNC Institutional
Management Corporation ("PIMC"), a wholly-owned subsidiary of PAMG, serves as
sub-adviser to the Portfolios. PNC Bank, PAMG and PIMC are indirect wholly-owned
subsidiary of PNC Bank Corp.
For its advisory services, PAMG is entitled to receive fees at the
following annual rates, computed daily and payable monthly, based on each
Portfolio's average daily net assets: .45% of the first $1 billion, .40% of the
next $1 billion, .375% of the next $1 billion, and .35% of net assets in excess
of $3 billion.
PAMG may, at its discretion, waive all or any portion of its advisory fees
for any Portfolio. For the period ended September 30, 1996, advisory fees and
waivers for each Portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
------------ ---------- ------------
<S> <C> <C> <C>
Money Market Portfolio ............................. $9,874,178 $8,108,997 $1,765,181
U.S. Treasury Money Market Portfolio ............... 5,136,095 4,330,008 806,087
Municipal Money Market Portfolio ................... 1,538,868 1,333,685 205,183
New Jersey Municipal Money Market Portfolio ........ 245,028 212,365 32,663
North Carolina Municipal Money Market Portfolio .... 427,672 370,649 57,023
Ohio Municipal Money Market Portfolio .............. 324,952 281,625 43,327
Pennsylvania Municipal Money Market Portfolio ...... 2,284,553 1,979,946 304,607
Virginia Municipal Money Market Portfolio .......... 187,709 187,709 --
</TABLE>
PAMG pays PIMC for its sub-advisory services.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp.,
Compass Capital Group, Inc. ("CCG"), an indirect wholly-owned subsidiary of PNC
Bank Corp., and Compass Distributors, Inc. ("CDI") act as co-administrators for
the Fund. The combined administration fee is computed daily and payable monthly,
based on a percentage of the average daily net assets of each Portfolio, at the
following annual rates: .18% of the first $500 million, .16% of the next $500
million, .14% of the next $1 billion and .13% of average daily net assets in
excess of $2 billion.
PFPC, CDI and CCG may, at their discretion, voluntarily waive all or any
portion of their administration fees for any Portfolio. For the period ended
September 30, 1996, administration fees and waivers for each Portfolio were as
follows:
<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- --------- --------------
<S> <C> <C> <C>
Money Market Portfolio .................................... $3,476,736 $511,800 $2,964,936
U.S. Treasury Money Market Portfolio ...................... 1,884,424 316,886 1,567,538
Municipal Money Market Portfolio .......................... 600,233 180,031 420,202
New Jersey Municipal Money Market Portfolio ............... 100,515 52,585 47,930
North Carolina Municipal Money Market Portfolio ........... 165,818 96,562 69,256
Ohio Municipal Money Market Portfolio ..................... 124,647 49,863 74,784
Pennsylvania Municipal Money Market Portfolio ............. 888,686 168,236 720,450
Virginia Municipal Money Market Portfolio ................. 73,560 73,560 --
</TABLE>
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In addition, PNC Bank serves as custodian for each of the Fund's
Portfolios. PFPC serves as transfer and dividend disbursing agent.
PAMG, PFPC, CCG and CDI also voluntarily agreed to reimburse expenses in
the amount of $19,472 with respect to the Virginia Municipal Money Market
Portfolio for the period ended September 30, 1996.
PAMG, PIMC, PFPC, CCG and CDI also agreed for the periods ended September
30, 1996 to reimburse each Portfolio for the amount, if any, by which the total
operating and management expenses of such Portfolio for any fiscal year exceed
the most restrictive state blue sky expense limitation in effect from time to
time, to the extent required by such limitation. No such reimbursements were
necessary for the periods ended September 30, 1996.
(C) CAPITAL SHARES
Because the Portfolios have each sold and redeemed shares only at a
constant net asset value of $1.00 per share, the number of shares represented by
such sales, acquisitions, reinvestments, and redemptions is the same as the
dollar amounts shown below for such transactions.
Transactions in capital shares for each period were as follows:
MONEY MARKET PORTFOLIO
-----------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
9/30/96 9/30/95
--------------- ---------------
Shares sold:
Institutional Class ................. $1,482,131,945 $1,188,546,232
Service Class ....................... 5,718,258,415 4,367,213,560
Investor A Class .................... 295,686,679 23,968,550
Investor B Class .................... 115,764 27,272
Shares issued in merger:
Institutional Class ................. -- --
Service Class ....................... 547,306,029 --
Investor A Class .................... -- --
Investor B Class .................... -- --
Shares issued in reinvestment of
dividends:
Institutional Class ................. 13,156 6,090
Service Class ....................... 8,291,571 6,071,308
Investor A Class .................... 4,364,346 295,866
Investor B Class .................... 1,233 --
Shares redeemed:
Institutional Class ................. (1,548,608,564) (1,037,357,343)
Service Class ....................... (5,892,912,622) (3,755,203,797)
Investor A Class .................... (148,141,000) (18,421,612)
Investor B Class .................... (5,214) (380)
-------------- --------------
Net increase ........................ $ 466,501,738 $ 775,145,746
============== ==============
34
<PAGE>
COMPASS CAPITAL FUNDS
U.S. TREASURY MONEY
MARKET PORTFOLIO
-----------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
9/30/96 9/30/95
-------------- ----------------
Shares sold:
Institutional Class ............. $ 1,652,699,602 $ 919,144,341
Service Class ................... 4,101,838,413 2,569,753,154
Investor A Class ................ 34,222,155 4,597,795
Investor B Class ................ -- --
Shares issued in merger:
Institutional Class ............. -- --
Service Class ................... 607,933,669 --
Investor A Class ................ -- --
Investor B Class ................ -- --
Shares issued in reinvestment of
dividends:
Institutional Class ............. 108,431 --
Service Class ................... 4,272,818 4,210,613
Investor A Class ................ 281,392 82,648
Investor B Class ................ -- --
Shares redeemed:
Institutional Class ............. (1,606,090,964) (836,123,978)
Service Class ................... (4,309,339,833) (2,395,843,440)
Investor A Class ................ (25,157,768) (5,050,864)
Investor B Class ................ -- --
--------------- ---------------
Net increase .................... $ 460,767,915 $ 260,770,269
=============== ===============
MUNICIPAL
MONEY MARKET PORTFOLIO
-------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
9/30/96 9/30/95
------------- -------------
Shares sold:
Institutional Class ................... $ 254,290,132 $ 148,945,410
Service Class ......................... 927,781,113 944,793,126
Investor A Class ...................... 2,752,567 4,303
Shares issued in merger:
Institutional Class ................... -- --
Service Class ......................... 37,389,008 --
Investor A Class ...................... -- --
Shares issued in reinvestment of dividends:
Institutional Class ................... 4,754 --
Service Class ......................... 1,419,165 961,327
Investor A Class ...................... 4,669 915
Shares redeemed:
Institutional Class ................... (264,142,296) (125,774,118)
Service Class ......................... (970,636,798) (813,471,594)
Investor A Class ...................... (925,748) (26,481)
------------- -------------
Net increase (decrease) ............... $ (12,063,434) $ 155,432,888
============= =============
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
NEW JERSEY MUNICIPAL
MONEY MARKET PORTFOLIO
-------------------------------------------------
FOR THE FOR THE
PERIOD PERIOD
2/1/96 3/1/95 FOR THE
THROUGH THROUGH YEAR ENDED
9/30/96 1/31/96 2/28/95
------------- ------------- -------------
<S> <C> <C> <C>
Prior Class
Exchanged in merger ...................... $ -- $ (56,147,148) $ --
Shares sold .............................. -- 68,505,533 70,309,000
Shares issued in reinvestment of dividends -- 124,356 64,000
Shares redeemed .......................... -- (56,100,370) (66,164,000)
------------- ------------- -------------
-- (43,617,629) 4,209,000
Institutional Class
Shares sold .............................. 1,780,000 -- --
Shares issued in merger .................. -- 4,195,000 --
Shares issued in reinvestment of dividends -- -- --
Shares redeemed .......................... (5,360,808) -- --
------------- ------------- -------------
(3,580,808) 4,195,000 --
Service Class
Exchanged in merger ...................... -- 56,154,777 --
Shares sold .............................. 115,679,773 2,238,112 --
Shares issued in merger .................. -- 559,547 --
Shares issued in reinvestment of dividends 97,257 -- --
Shares redeemed .......................... (104,595,622) (1,976,807) --
------------- ------------- -------------
11,181,408 56,975,629 --
Investor A Class
Shares sold .............................. 39,216,216 12,203,184 --
Shares issued in merger .................. -- 12,053,281 --
Shares issued in reinvestment of dividends 325,948 45,768 --
Shares redeemed .......................... (43,890,958) (2,640,160) --
------------- ------------- -------------
(4,348,794) 21,662,073 --
------------- ------------- -------------
Net increase ............................. $ 3,251,806 $ 39,215,073 $ 4,209,000
============= ============= =============
</TABLE>
36
<PAGE>
COMPASS CAPITAL FUNDS
NORTH CAROLINA MUNICIPAL
MONEY MARKET PORTFOLIO
-------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
9/30/96 9/30/95
------------- -------------
Shares sold:
Institutional Class .................. $ 371,920,387 $ 391,610,480
Service Class ........................ 30,131,643 5,766,832
Investor A Class ..................... 56,500 52,600
Shares issued in merger:
Institutional Class .................. -- --
Service Class ........................ -- --
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 478 13,036
Service Class ........................ 136,347 7,099
Investor A Class ..................... 2,202 99
Shares redeemed:
Institutional Class .................. (336,496,796) (384,623,190)
Service Class ........................ (24,645,317) (3,933,442)
Investor A Class ..................... (1,000) --
------------- -------------
Net increase ......................... $ 41,104,444 $ 8,893,514
============= =============
OHIO MUNICIPAL
MONEY MARKET PORTFOLIO
-------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
9/30/96 9/30/95
------------- -------------
Shares sold:
Institutional Class .................. $ 279,900,577 $ 122,539,501
Service Class ........................ 97,424,650 111,982,459
Investor A Class ..................... 21,631,388 159,749
Shares issued in merger:
Institutional Class .................. -- --
Service Class ........................ -- --
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 96,704 3,239
Service Class ........................ 536,941 496,048
Investor A Class ..................... 87,588 650
Shares redeemed:
Institutional Class .................. (270,730,685) (109,384,069)
Service Class ........................ (102,290,339) (106,687,592)
Investor A Class ..................... (16,121,036) (113,340)
------------- -------------
Net increase ......................... $ 10,535,788 $ 18,996,645
============= =============
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PENNSYLVANIA MUNICIPAL
MONEY MARKET PORTFOLIO
-------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
9/30/96 9/30/95
------------- -------------
Shares sold:
Institutional Class .................. $ 699,970,106 $ 576,760,145
Service Class ........................ 510,380,872 301,727,871
Investor A Class ..................... 344,023,126 933,231
Shares issued in merger:
Institutional Class .................. -- --
Service Class ........................ 51,341,917 --
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 81,419 44,093
Service Class ........................ 976,100 597,907
Investor A Class ..................... 1,434,393 6,129
Shares redeemed:
Institutional Class .................. (734,642,456) (501,492,214)
Service Class ........................ (486,239,639) (215,145,532)
Investor A Class ..................... (282,784,199) (327,834)
------------- -------------
Net increase ......................... $ 104,541,639 $ 163,103,796
============= =============
VIRGINIA MUNICIPAL
MONEY MARKET PORTFOLIO
-----------------------------
FOR THE
PERIOD
FOR THE 07/25/94 1
YEAR ENDED THROUGH
9/30/96 9/30/95
------------ ------------
Shares sold:
Institutional Class .................. $ 87,292,017 $ 46,235,242
Service Class ........................ 39,822,130 1,960,784
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. -- --
Service Class ........................ 106,079 --
Investor A Class ..................... -- --
Shares redeemed:
Institutional Class .................. (73,148,152) (35,657,395)
Service Class ........................ (25,780,943) (1,140,067)
Investor A Class ..................... -- --
------------ ------------
Net increase ......................... $ 28,291,131 $ 11,398,564
============ ============
- ------------------
1 Commencement of operations.
38
<PAGE>
COMPASS CAPITAL FUNDS
(D) AT SEPTEMBER 30, 1996, NET ASSETS CONSISTED OF:
<TABLE>
<CAPTION>
U.S. NEW JERSEY
TREASURY MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Capital paid in .................... $2,324,992,540 $1,133,540,818 $ 307,724,335 $ 86,074,007
Accumulated net realized gain (loss)
on investment transactions ........ 38,850 (262,952)1 (320,833) (6,962)
-------------- -------------- -------------- --------------
$2,325,031,390 $1,133,277,866 $ 307,403,502 $ 86,067,045
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
NORTH
CAROLINA OHIO PENNSYLVANIA VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Capital paid in .............. $ 119,670,967 $ 84,149,244 $ 486,452,077 $ 53,520,793
Accumulated net realized loss
on investment transactions .. (121) (8,125)1 (8,647)1 (171)
------------- ------------- ------------- -------------
$ 119,670,846 $ 84,141,119 $ 486,443,430 $ 53,520,622
============= ============= ============= =============
<FN>
- ------------------
1 Includes $203,528, $5,840, and $1,626 of deferred post-October losses as of
September 30, 1996, respectively.
</FN>
</TABLE>
(E) CAPITAL LOSS CARRYOVER
At September 30, 1996, capital loss carryovers were available to offset
possible future realized capital gains as follows: $59,424 in the U.S. Treasury
Money Market Portfolio which expires through 2004, $320,833 in the Municipal
Money Market Portfolio which expires through 2004, $6,962 in the New Jersey
Municipal Money Market Portfolio which expires through 2003, $121 in the North
Carolina Municipal Money Market Portfolio which expires through 2004, $2,285 in
the Ohio Municipal Money Market Portfolio which expires through 2003, $7,021 in
the Pennsylvania Municipal Money Market Portfolio which expires through 2004,
and $171 in the Virginia Municipal Money Market Portfolio which expires through
2004.
(F) MERGER
On September 29, 1995 and October 2, 1995, respectively, the Board of
Trustees of the Fund and the Board of Trustees of The Compass Capital Group of
Funds ("Compass") approved an asset purchase agreement providing for the
transfer of all of the assets and liabilities of Compass to the Fund. At a
special meeting of shareholders held on December 11, 1995, the shareholders of
Compass voted to approve the asset purchase agreement. Pursuant to the asset
purchase agreement, on January 13, 1996 (February 13, 1966 with respect to the
International Bond Portfolio) all of the assets and liabilities of Compass were
transferred to the Fund in a tax-free exchange for Service shares of the Fund.
The details of the business combination as it relates to the Portfolios are
described below.
The following table summarizes certain relevant information of the Fund
prior to and immediately after the above-referenced business combination. Unless
indicated otherwise, the Fund Portfolio is the accounting survivor. The new
combined funds maintain all the operating history of the accounting survivor.
THE COMPASS CAPITAL GROUP OF FUNDS
- ---------------------------------------------------------------
NET ASSET
SHARES AT VALUE AT
FUND NAME 1/13/96 1/13/96
- ---------------------------- ----------- ------------
Cash Reserve 547,461,079 $547,306,029
U.S. Treasury 607,999,373 607,933,712
Municipal Money 37,420,876 37,389,008
New Jersey Municipal Money 56,147,148 56,154,777
Pennsylvania Municipal Money 51,350,576 51,341,917
THE COMPASS CAPITAL FUNDS
- ------------------------------------------------------------------------------
COMBINED
SHARES NET ASSETS
NEW ISSUED IN AFTER NAV
PORTFOLIO BUSINESS BUSINESS PER
NAME COMBINATION COMBINATION SHARE
- ----------------------------------- ----------- -------------- -----
Money Market 547,461,079 $2,573,597,347 $1.00
U.S. Treasury Money Market 607,999,373 1,403,912,997 $1.00
Municipal Money Market 37,420,876 383,861,249 $1.00
New Jersey Municipal Money Market1 56,147,148 72,306,961 $1.00
Pennsylvania Municipal Money Market 51,350,576 533,075,086 $1.00
- ------------------
1 The Compass Capital Group of Funds' portfolio is the accounting survivor in
this business combination.
39
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS COMPASS CAPITAL FUNDS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF THE COMPASS CAPITAL FUNDS:
We have audited the accompanying statements of net assets of the Money Market,
U.S. Treasury Money Market, Municipal Money Market, New Jersey Municipal Money
Market, North Carolina Municipal Money Market, Ohio Municipal Money Market,
Pennsylvania Municipal Money Market and Virginia Municipal Money Market
Portfolios of the Compass Capital Funds as of September 30, 1996, and the
related statements of operations for the periods then ended, the statements of
changes in net assets for each of the two years (or periods) in the period then
ended, and the financial highlights for each of the periods presented. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments held by the
custodian and brokers as of September 30, 1996. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Compass Capital Funds (Money Market, U.S. Treasury Money Market, Municipal Money
Market, New Jersey Municipal Money Market, North Carolina Municipal Money
Market, Ohio Municipal Money Market, Pennsylvania Municipal Money Market and
Virginia Municipal MoneyMarket Portfolios), as of September 30, 1996, and the
results of their operations for the periods then ended, the changes in their net
assets for each of the two years (or periods) in the period then ended, and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
November 15, 1996
40
<PAGE>
COMPASS CAPITAL FUNDS
SPECIAL MEETING OF SHAREHOLDERS
At a Special Meeting of Shareholders of the Fund (the "Special Meeting")
called on January 4, 1996, and thereafter adjourned from time to time, the
following actions were taken:
The new investment advisory agreement with PAMG and the new sub-advisory
agreement with PIMC with respect to the New Jersey Municipal Money Market
Portfolio were approved by the shareholders of that Portfolio as follows:
PORTFOLIO VOTES FOR VOTES AGAINST ABSTAINED
- --------- ------------- ------------- ---------
New Jersey Municipal Money Market 10,051,606.82 0.00 0.00
41
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Investment Adviser
PNC Asset Management Group, Inc.
Philadelphia, Pennsylvania 19101
Sub-Adviser
PNC Institutional Management
Corporation
Wilmington, Delaware 19809
Custodian
PNC Bank, National Association
Philadelphia, Pennsylvania 19101
Co-Administrator and Transfer Agent
PFPC Inc.
Wilmington, Delaware 19809
Co-Administrator and Distributor
Compass Distributors, Inc.
Radnor, Pennsylvania 19087
Co-Administrator
Compass Capital Group, Inc.
New York, New York 10154
Counsel
Drinker Biddle & Reath
Philadelphia, Pennsylvania 19107
Independent Accountants
Coopers & Lybrand, L.L.P.
Philadelphia, Pennsylvania 19103
<PAGE>
COMPASS CAPITAL FUNDS
COMPASS CAPITAL FUNDS
Compass Capital Funds is a leading mutual fund company currently managing in
excess of $11 billion in over 25 portfolios designed to fit a broad range of
investment goals. Each portfolio is managed by recognized experts in equity,
fixed income, international, and tax-free investing who adhere to a pure
investment style.
STOCK PORTFOLIOS
================================================================================
Index Equity Small Cap Value Equity
Select Equity Small Cap Growth Equity
Growth Equity International Equity
Value Equity International Emerging Markets
STOCK & BOND PORTFOLIOS
================================================================================
Balanced
BOND PORTFOLIOS
================================================================================
Short Government Bond Government Income
Intermediate Government Bond Managed Income
Intermediate Bond InternationalBond
Core Bond
TAX-FREE BOND PORTFOLIOS
================================================================================
Tax-Free Income New Jersey Tax-Free Income
Pennsylvania Tax-Free Income Ohio Tax-Free Income
MONEY MARKET PORTFOLIOS
================================================================================
Money Market North Carolina Municipal Money Market
U.S. Treasury MoneyMarket Ohio Municipal Money Market
Municipal Money Market Pennsylvania MunicipalMoney Market
New Jersey MunicipalMoney Market Virginia Municipal Money Market
<PAGE>
[LOGO]
COMPASS CAPITAL FUNDS
P.O. Box 8907
Wilmington, DE 19899
COMPASS CAPITAL FUNDS - AT YOUR SERVICE
As a Compass Capital Funds shareholder, you have some special privileges.
Whether it's automatic investment plans, informative newsletters or ready access
to your account, you can benefit from services designed to make investing
simple.
24-HOUR ACCOUNT INFORMATION
Call us at 1-800-441-7762, 24 hours a day, 7 days a week to get information
about your account balances, recent transactions and share prices. Note:
Institutional and Service Share Class investors should call 1-800-441-7764.
You can also reach us on the Internet through the World Wide Web by accessing
HTTP://WWW.COMPASSFUNDS.COM.
EXCHANGE PRIVILEGES
Should your investment goals change, shareholders in our Investor Class shares
may exchange all or part of their investments into the same share class of any
other portfolio of Compass Capital funds.(1)
AUTOMATIC INVESTMENT PLANS
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the Compass Capital portfolios.
SYSTEMATIC WITHDRAWAL PLANS
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments, of $100 or more from their Compass Capital
portfolios, as long as their account is at least $10,000.
RETIREMENT PLANS
Shareholders may make investments in conjunction with individual IRA accounts or
rollover IRAs.
(1) Compass Capital Funds reserves the right to modify or terminate the exchange
privileges at any time.
- --------------------------------------------------------------------------------
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY PNC BANK, NATIONAL ASSOCIATION OR ANY OTHER BANK AND SHARES ARE NOT FEDERALLY
INSURED BY, GUARANTEED BY, OBLIGATIONS OF OR OTHERWISE SUPPORTED BY THE U.S.
GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE
BOARD, OR ANY OTHER GOVERNMENTAL AGENCY. INVESTMENTS IN SHARES OF THE FUND
INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED. THERE CAN BE NO ASSURANCE THAT THE PORTFOLIOS WILL BE ABLE TO MAINTAIN
A STABLE NET ASSET VALUE OF $1 PER SHARE.
- --------------------------------------------------------------------------------
SR 9/30/96-MM
