COMPASS CAPITAL FUNDS LOGO
[GRAPHIC OMITTED]
MONEY MARKET
PORTFOLIOS
SEMI-ANNUAL REPORT TO SHAREHOLDERS
MARCH 31, 1996
MONEY MARKET PORTFOLIO
U.S. TREASURY MONEY MARKET
PORTFOLIO
MUNICIPAL MONEY MARKET
PORTFOLIO
NEW JERSEY MUNICIPAL
MONEY MARKET PORTFOLIO
NORTH CAROLINA MUNICIPAL
MONEY MARKET PORTFOLIO
OHIO MUNICIPAL
MONEY MARKET PORTFOLIO
PENNSYLVANIA MUNICIPAL
MONEY MARKET PORTFOLIO
VIRGINIA MUNICIPAL
MONEY MARKET PORTFOLIO
<PAGE>
COMPASS CAPITAL FUNDS
BELLEVUE PARK CORPORATE CENTER
400 BELLEVUE PARKWAY
WILMINGTON, DE 19809
May 1, 1996
Dear Fellow Investor:
We are pleased to present the first consolidated Semi-Annual Report to
Shareholders of the Compass Capital Funds for the six months ended March 31,
1996. This report affords us the opportunity to provide investors with each
fund's portfolio security holdings, performance results, financial statements
and six-month market commentary by the investment sub-adviser.
The Compass Capital Funds were launched on January 13, 1996, and represent
a consolidation of the PNC funds, the Compass funds affiliated with Midlantic
and the open-end institutional funds of BlackRock Financial Management. The 28
separate Compass Capital Funds, comprised of 11 Bond, 9 Equity and 8 Money
Market Portfolios, are managed by premier investment managers:
(BULLET) PNC Equity Advisors Company manages the growth equity Portfolios;
(BULLET) Provident Capital Management, Inc. manages the value equity Portfolios;
(BULLET) CastleInternational Asset Management,Ltd. manages the international
equity Portfolios;
(BULLET) BlackRock Financial Management, Inc. manages the domestic fixed income
Portfolios;
(BULLET) Morgan Grenfell manages the International Bond Portfolio; and
(BULLET) PNC Institutional Management Corporation manages the money market
Portfolios.
Each fund within the family maintains a strict investment discipline
according to its pure investment style (e.g., for equities, "value" or "growth"
and for fixed income, "short duration" or "intermediate duration"), which
provides investors with the best opportunity to match their investment
expectations with actual results.
We appreciate your investment with the Compass Capital Funds and look
forward to maintaining your respect and confidence and to help in pursuing your
long-term wealth building objectives. You are encouraged to call our toll-free
information number at 800-FUTURE4 for questions about the Compass Capital
Portfolios.
Sincerely,
/S/ KAREN H. SABATH
Karen H. Sabath
President, Compass Capital Group, Inc.
1
<PAGE>
COMPASS CAPITAL FUNDS
SEMI-ANNUAL REPORT OF THE INVESTMENT ADVISER
PNC Asset Management Group serves as the investment adviser to the Compass
Capital Funds and is pleased to provide the following commentary on the markets
and the Portfolios.
MARKET OVERVIEW
In the semi-annual period between September 30, 1995 and March 31, 1996,
investor sentiment reversed course as data released on the strength and
direction of the U.S. economy diverged from previous expectations. In the last
few months of 1995, investors began to believe that the Federal Reserve had
successfully engineered a "soft landing" and generally expected President
Clinton and Congress to agree on a plan that would balance the Federal budget by
2002. As 1996 began, however, fears of recession began to re-emerge and the
budget negotiations, which had become very intense in December and January, all
but disappeared as politics and state primaries took center stage.
The lack of economic data, due to the recently ended Federal government
shutdown, has added to the difficulty of assessing the current economic
environment. Despite this, it is clear that the economy is not robust. While
retail sales over the past three months suggest that real consumer spending
should be growing at a 2.0% to 2.5% rate, the manufacturing economy continues to
be weak, as evidenced by the National Association of Purchasing Management's
reading below 50, a threshold which is used to measure whether the economy is
expanding or contracting. But recently even this indicator has stabilized,
suggesting that inventory reduction programs have run their course. Nonetheless,
business confidence remains high and firms continue to invest in producer
durable goods such as computers and machine tools. Available evidence further
points to continued strength in exports, which are benefiting from the earlier
low level of the dollar and the high quality of U.S.-produced goods. The Federal
government remains the weak link in a modest growth forecast and the budget
impasse only exacerbates the effect on U.S. output as the government buys fewer
goods and services.
The nation's weak economic conditions fostered a declining interest rate
environment for the six-month period ended March 31, 1996. During this period,
the Federal Reserve reduced the federal funds rate to 5.25% from 5.75% and the
discount rate to 5.00% from 5.25%. These two quick moves by the Fed caused
market sentiment to discount additional easing moves and, as a result, the
short-term yield curve became even more steeply inverted. Overnight rates
remained at 5.25%, while six-month and one-year Treasury bills rallied sharply
to 4.87% and 4.78%, respectively.
By the middle of the first quarter of 1996, sentiment began to change as
economic reports showed scattered signs of strength. The short-term market
surrendered some of its recent gains but retained a stubbornly flat slope. It
was February's report on employment released in early March, however, that
reversed the course of the market. With the news of 705,000 new jobs, short-term
and long-term interest rates rose sharply, reflecting both renewed inflationary
fears and the expectation that the Federal Reserve would halt its string of
accommodative moves. As the quarter ended, the Fed did, in fact, leave monetary
policy unchanged at its March meeting. Six-month and one-year Treasury bills
ended the quarter at 5.18% and 5.38%, indicative of the first positively sloped
yield curve in over one year. The positive slope of the yield curve provided the
opportunity to extend average weighted maturities since the purchase of a longer
maturity security offered a pick up in yield.
2
<PAGE>
COMPASS CAPITAL FUNDS
SEMI-ANNUAL REPORT OF THE INVESTMENT ADVISER (CONTINUED)
TAX-EXEMPT MONEY MARKETS
Within the tax-exempt spectrum, money market funds experienced record
growth during the six months ended March 31, 1996. Assets hit new all-time highs
in each month and ended the period at $136 billion, up $16 billion or 13% from
six months earlier. This surge in assets can be attributed to uncertainty over
changes to the tax code and flat tax proposals, the Washington budget impasse,
the new T plus 3 settlement changes and an inverted yield curve. Investor
concerns about credit quality created enormous demand for high quality paper
during the period. These high levels of demand were greeted by a lack of supply
from the municipalities, hampering the short-term tax-free money markets. This
caused municipal money market yields to be unattractive on an after-tax basis
versus taxable alternatives. Tax-free yields reached a low of 3.00% during the
first quarter of 1996. Supply problems continued in New Jersey, North Carolina
and Virginia due to a reduction in municipal funding needs and strong credit
trends in all three states. Adequate supply in Ohio and Pennsylvania allowed for
higher yields than other states.
OUTLOOK
The economy appears to be showing some strength with the increase in retail
sales, housing starts and industrial production figures and inflation appears to
be under control with wholesale prices and consumer prices averaging only 2.0%
and 2.7%, respectively, over the past year. As a result, it is anticipated that
the Fed will be cautious about tightening monetary policy and will remain on the
sidelines waiting to see if the apparent economic rebound is sustainable before
taking any action. It is expected that the short-term yield curve will remain
positively sloped providing further opportunities to extend maturities.
Respectfully submitted,
/s/ RICHARD C. CALDWELL
Richard C. Caldwell
Chairman
PNC Asset Management Group, Inc.
3
<PAGE>
COMPASS CAPITAL FUNDS
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
AGENCY OBLIGATIONS -- 1.4%
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.8%
5.59% 07/01/96 $10,000 $ 9,996,167
5.41% 12/06/96 10,000 9,989,678
------------
19,985,845
------------
STUDENT LOAN MARKETING ASSOCIATION -- 0.6%
6.08% 07/01/96 5,000 5,000,000
5.90% 10/04/96 11,000 11,000,000
------------
16,000,000
------------
TOTAL AGENCY OBLIGATIONS
(Cost $35,985,845) 35,985,845
------------
ASSET BACKED SECURITIES -- 1.2%
Boatmen's Auto Trust Series 1995A
5.7725% 10/15/96 2,073 2,072,568
General Motors Acceptance Corp.
Structured Enhanced Return
Trust Series 1994A-11
5.60%** 05/20/96 10,000 10,000,000
Merrill Lynch Structured
Enhanced Return
Trust Series 1993A-2
5.925%** 11/18/96 10,000 10,000,000
Merrill Lynch Structured
Enhanced Return
Trust Series 1995A-18
5.4289%** 07/18/96 10,000 10,000,000
------------
TOTAL ASSET BACKED SECURITIES
(Cost $32,072,568) 32,072,568
------------
BANK NOTES -- 0.4%
Key Bank Alaska
6.40% 05/08/96 10,000 10,004,332
------------
(Cost $10,004,332)
CERTIFICATES OF DEPOSIT -- 14.1%
BANKS -- 6.1%
Chase Manhattan Bank
USA N.A.
5.40% 06/13/96 10,000 10,000,000
FCC National Bank
5.80% 10/10/96 6,000 6,000,000
First National Bank of Boston
5.40% 05/07/96 25,000 25,000,000
LaSalle National Bank
5.16% 05/06/96 25,000 25,000,000
Mellon Bank
5.70% 05/01/96 45,000 45,000,000
Wilmington Trust Company
5.16% 05/17/96 25,000 25,000,000
5.13% 06/26/96 20,000 20,000,000
------------
156,000,000
------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
EURO DOLLAR -- 0.2%
Abbey National Bank
6.73% 04/02/96 $ 5,000 $ 5,000,037
------------
YANKEE -- 7.8%
Banque Nationale de Paris
5.14% 05/15/96 30,000 29,999,062
5.36% 09/23/96 55,000 54,993,541
Deutschebank
5.42% 04/04/96 20,000 19,999,996
Societe Generale
5.25% 05/01/96 70,000 70,003,232
Westpac Banking Corp.
5.85% 06/04/96 25,000 25,000,000
------------
199,995,831
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $360,995,868) 360,995,868
------------
COMMERCIAL PAPER -- 53.8%
BANKS -- 9.6%
AB Spintab Swedmortgage
5.37% 04/16/96 23,200 23,148,090
5.65% 04/18/96 50,000 49,866,597
5.33% 06/07/96 30,000 29,702,408
Abbey National N.A.
5.09% 06/20/96 50,000 49,434,444
Chemical Banking Corp.
5.29% 05/15/96 50,000 49,676,722
NationsBank Corp.
5.37% 04/12/96 40,000 39,934,367
Tasmanian Public Finance Corp.
5.45% 05/08/96 5,250 5,220,593
------------
246,983,221
------------
CHEMICALS -- 1.0%
E.I. Du Pont de Nemours & Co.
5.58% 07/18/96 25,000 24,581,500
------------
CREDIT INSTITUTIONS -- 17.7%
Associates Corp. of North America
5.15% 06/17/96 42,000 41,537,358
BMW US Capital Corp.
5.10% 05/06/96 19,700 19,602,321
5.29% 06/28/96 53,005 52,319,586
Corporate Receivables Corp.
5.13% 05/07/96 25,000 24,871,750
CXC, Inc.
5.26% 05/07/96 50,000 49,737,000
5.13% 06/07/96 25,000 24,761,313
5.28% 07/02/96 25,300 24,958,619
Ford Motor Credit Corp.
5.36% 04/11/96 75,000 74,888,333
See accompanying notes to financial statements.
4
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
COMMERCIAL PAPER (CONTINUED)
CREDIT INSTITUTIONS (CONTINUED)
General Motors Acceptance Corp.
5.13% 05/13/96 $40,000 $ 39,760,600
5.34% 06/17/96 35,000 34,600,242
Preferred Receivables Funding Corp.
5.50% 04/01/96 28,800 28,800,000
Sears Roebuck Acceptance Corp.
5.30% 05/08/96 40,000 39,782,111
-------------
455,619,233
-------------
FINANCE -- 8.6%
Beta Finance, Inc.
5.08% 05/24/96 45,000 44,663,450
General Electric Capital Corp.
5.24% 08/15/96 50,000 49,010,222
Household Finance Corp.
5.12% 06/18/96 23,000 22,744,853
Whirlpool Financial Corp.
5.33% 04/24/96 46,800 46,640,633
5.31% 04/29/96 30,000 29,876,100
5.12% 05/10/96 30,000 29,833,600
-------------
222,768,858
-------------
GLASS -- 2.3%
Newell Co.
5.45% 04/01/96 60,000 60,000,000
-------------
PHARMACEUTICALS -- 2.3%
American Home Products Corp.
5.11% 05/10/96 40,000 39,778,567
5.35% 05/23/96 20,000 19,845,444
-------------
59,624,011
-------------
SECURITY BROKERS & DEALERS -- 10.3%
Bear Stearns Companies, Inc.
5.55% 07/22/96 15,000 14,741,000
Goldman Sachs Group L.P.
5.60% 04/09/96 50,000 49,937,778
Lehman Brothers Holdings, Inc.
5.35% 06/13/96 75,000 74,186,354
Morgan Stanley Group, Inc.
5.38% 04/08/96 75,000 74,921,542
5.32% 04/30/96 50,000 49,785,722
-------------
263,572,396
-------------
TELECOMMUNICATIONS -- 2.0%
GTE Corp.
5.30% 04/03/96 20,765 20,758,886
5.37% 04/17/96 30,000 29,928,400
-------------
50,687,286
-------------
TOTAL COMMERCIAL PAPER
(Cost $1,383,836,505) 1,383,836,505
-------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
CORPORATE BONDS -- 0.4%
CREDIT INSTITUTIONS -- 0.4%
Associates Corp, N.A.
8.375% 06/01/96 $ 4,100 $ 4,115,956
Ford Motor Credit Corp.
8.625% 04/15/96 6,100 6,105,383
------------
TOTAL CORPORATE BONDS
(Cost $10,221,339) 10,221,339
------------
GUARANTEED INVESTMENT CONTRACT -- 0.4%
Peoples Security Life
5.50% 06/29/96 10,000 10,000,000
------------
(Cost $10,000,000)
MEDIUM TERM NOTES -- 6.8%
BANKS - 0.3%
Wells Fargo & Co.
8.20% 11/01/96 8,000 8,101,030
------------
CREDIT INSTITUTIONS -- 1.1%
General Motors Acceptance Corp.
8.25% 08/01/96 10,000 10,074,989
7.85% 10/25/96 3,425 3,459,314
Toyota Motor Credit Corp.
5.39% 04/08/96 10,000 9,999,880
5.30% 06/13/96 3,700 3,699,475
------------
27,233,658
------------
FINANCE -- 2.1%
Amex Centurion Bank
5.3125% 04/12/96 10,000 10,000,000
5.95% 10/25/96 15,000 15,000,000
General Electric Capital Corp.
7.625% 07/24/96 5,000 5,025,873
IBM Credit Corp.
6.00% 08/26/96 25,000 24,999,199
------------
55,025,072
------------
SECURITY BROKERS & DEALERS -- 3.3%
Bear Stearns & Co. Inc.
5.29% 03/11/97 20,000 20,000,000
Merrill Lynch & Co.
6.44% 05/15/96 15,000 15,000,000
5.12% 02/27/97 25,000 24,995,464
5.335% 03/05/97 25,000 25,000,000
------------
84,995,464
------------
TOTAL MEDIUM TERM NOTES
(Cost $175,355,224) 175,355,224
------------
TIME DEPOSITS -- 1.9%
Chemical Bank
5.50% 04/01/96 50,000 50,000,000
------------
(Cost $50,000,000)
See accompanying notes to financial statements.
5
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
VARIABLE RATE OBLIGATIONS -- 17.6%
BANKS -- 5.6%
Comerica Bank
5.2125%** 05/08/96 $39,200 $ 39,177,040
First Union National Bank of North
Carolina
5.40%** 04/01/96 50,000 50,000,000
Morgan Guaranty Trust
5.33%** 04/01/96 55,000 54,990,364
------------
144,167,404
------------
CREDIT INSTITUTIONS -- 1.9%
Norwest Corp.
5.41%** 04/29/96 50,000 50,000,000
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.4%
5.535%** 09/27/96 10,000 10,000,000
------------
SECURITY BROKERS & DEALERS -- 7.3%
Bear Stearns & Co., Inc.
5.67%** 04/01/96 20,000 20,000,000
5.70%** 04/01/96 35,000 35,000,000
5.3046%** 05/10/96 35,000 35,000,000
Goldman Sachs Group,LP
6.0625%** 05/06/96 47,000 47,000,000
Lehman Brothers Holdings, Inc.
5.5125%** 06/03/96 50,000 50,000,000
------------
187,000,000
------------
STUDENT LOAN MARKETING ASSOCIATION -- 2.4%
5.29%** 04/02/96 5,000 4,987,673
5.31%** 04/02/96 20,000 20,000,000
5.32%** 04/02/96 21,000 20,997,180
5.33%** 04/02/96 15,000 14,995,369
------------
60,980,222
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $452,147,626) 452,147,626
------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
REPURCHASE AGREEMENTS -- 1.6%
Paine Webber
5.55% 04/01/96 $ 40,000 $ 40,000,000
--------------
(Agreement dated 03/29/96 to be
repurchased at $40,018,500.
Collaterlized by $168,822,000 U.S
Treasury Strips due 02/15/11 to
11/15/19. The value of the
collateral is $41,200,062.)
(Cost $40,000,000)
NUMBER
OF SHARES
---------
INFINITY CASH RESERVE -- PRIME -- 0.4%
(Cost $9,345,443) 9,345,443 9,345,443
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $2,569,964,750*) 100.0% 2,569,964,750
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.0%) (783,754)
------ -------------
NET ASSETS (Equivalent to $1.00
per share based on 619,674,844
Institutional shares, 1,834,373,251
Service shares, 115,138,185
Investor A shares and 27,449
Investor B shares
outstanding) 100.0% $2,569,180,996
===== ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A AND INVESTOR B
SHARE
($2,569,180,996 (DIVIDE) 2,569,213,729) $1.00
=====
- -------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1996.
See accompanying notes to financial statements.
6
<PAGE>
COMPASS CAPITAL FUNDS
U.S. TREASURY MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
U.S. TREASURY OBLIGATIONS -- 29.5%
U.S. TREASURY BILLS -- 19.3%
5.18% 04/18/96 $ 50,000 $ 49,877,694
5.29% 05/02/96 15,000 14,928,571
5.265% 05/02/96 20,000 19,909,325
5.28% 05/02/96 15,000 14,931,800
5.305% 05/09/96 20,000 19,888,006
5.26% 05/30/96 20,000 19,827,589
5.005% 07/11/96 25,000 24,648,955
4.785% 02/06/97 25,000 23,966,573
4.825% 02/06/97 25,000 23,957,934
4.93% 02/06/97 15,000 14,361,154
5.08% 03/06/97 15,000 14,282,450
5.125% 03/06/97 15,000 14,276,094
--------------
254,856,145
--------------
U.S. TREASURY NOTES -- 4.6%
5.875% 05/31/96 10,000 10,001,557
6.875% 10/31/96 20,000 20,133,234
7.50% 01/31/97 30,000 30,626,740
--------------
60,761,531
--------------
U.S. TREASURY STRIP NOTES -- 5.6%
7.375% 05/15/96 75,000 74,513,863
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $390,131,539) 390,131,539
--------------
REPURCHASE AGREEMENTS -- 70.5%
Aubrey G. Lanston & Co., Inc.
5.40% 04/01/96 140,000 140,000,000
(Agreement dated 03/29/96 to be
repurchased at $140,063,000.
Collaterlized by 140,190,000 U.S.
Treasury Notes and Bonds 5.375% due
11/30/97. The market value of the
collateral is $142,802,500).
Daiwa Securities America, Inc
5.42% 04/01/96 70,000 70,000,000
(Agreement dated 03/29/96 to be
repurchased at $70,031,617.
Collaterlized by $61,685,000 U.S.
Treasury Notes and Bonds 8.00% due
11/15/21. The market value of the
collateral is $71,400,387).
PAR
MATURITY (000) VALUE
---------- -------- ------------
REPURCHASE AGREEMENTS (CONTINUED)
J. P. Morgan Securities
5.375% 04/01/96 $ 70,000 $ 70,000,000
(Agreement dated 03/29/96 to
be repurchased at $70,031,354.
Collaterlized by $57,057,000 U.S.
Treasury Notes and Bonds 8.75%
to 9.00% due 05/15/20 to 11/15/18.
The market value of the collateral
is $71,400,998).
Lehman Government Securities, Inc.
5.50% 04/01/96 280,000 280,000,000
(Agreement dated 03/29/96 to
be repurchased at $280,600,014.
Collaterlized by $275,117,000 U.S.
Treasury Notes 7.6375% to 8.00%
due 05/13/99 to 09/30/99. The
market value of the collateral
is $285,492,626).
Merrill Lynch
5.22% 04/17/96 50,000 50,000,000
(Agreement dated 03/29/96 to be
repurchased at $50,456,750.
Collaterlized by $160,554,000 U.S.
Treasury Strips due 05/15/10 to
05/15/14. The market value of
the collateral is $51,071,287).
Morgan Stanley & Co.
5.71% 04/01/96 250,400 250,400,000
(Agreement dated 03/29/97 to be
repurchased at $250,519,149.
Collaterlized by 128,750,000 U.S.
Treasury Notes 5.375% to 7.50%
due 01/31/97 to 11/30/97, $59,862,000
U.S. Treasury Bonds 7.875% to
15.75% due 02/15/01 to 11/15/18,
and $48,169,000 U.S. Treasury
Bills 0.00% due 04/11/96 to 12/12/96.
The market value of the collateral
is $255,546,495).
Swiss Bank Corp.
5.30% 04/01/96 70,000 70,000,000
(Agreement dated 03/29/96 to be
repurchased at $70,030,917.
Collaterlized by $63,965,000 U.S.
Treasury Notes and Bonds 7.875%
due 02/15/21. The market value
of the collateral is $71,400,931).
TOTAL REPURCHASE AGREEMENTS
(Cost $930,400,000) 930,400,000
--------------
TOTAL INVESTMENTS IN SECURITIES
Cost $1,320,531,539*) 100.0% $1,320,531,539
====== ==============
- ------------------
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
7
<PAGE>
COMPASS CAPITAL FUNDS
U.S. TREASURY MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
ASSETS
Investments at value ....................................... $1,320,531,539
Cash ....................................................... 58,258
Interest receivable ........................................ 1,897,578
Receivable for maturity .................................... 168,977,640
Prepaid expenses and other ................................. 100,678
--------------
TOTAL ASSETS ....................................... 1,491,565,693
--------------
LIABILITIES
Accrued expenses payable ................................... 1,044,332
Distributions payable ...................................... 5,924,502
Deferred merger cost ....................................... 77,759
--------------
TOTAL LIABILITIES ................................... 7,046,593
--------------
NET ASSETS (Applicable to $1.00 per share based on
181,309,075 Institutional shares, 1,295,320,543 Service
shares and 8,239,000 Investor A shares outstanding) ........ $1,484,519,100
==============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND INVESTOR A SHARE
($1,484,519,100 (DIVIDE) 1.484,868,618) .................... $1.00
=====
See accompanying notes to financial statements.
8
<PAGE>
COMPASS CAPITAL FUNDS
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
ARIZONA -- 1.2%
Apache County IDA (Tuscon
Electric Power Company Project)
Series 1983A DN
3.45%** 04/07/96 $ 2,500 $ 2,500,000
Pima County IDA (Tuscon Electrical
Power Company General Project)
Series 1982A DN
3.40%** 04/07/96 1,900 1,900,000
------------
4,400,000
------------
CALIFORNIA -- 0.6%
Los Angeles County Series 1995
TRAN
4.50% 07/01/96 2,000 2,002,832
------------
COLORADO -- 6.9%
City & County of Denver Airport
System Subordinated TECP
3.55% 04/01/96 2,000 2,000,000
City & County of Denver Airport
System Revenue Series B MB
3.60% 04/22/96 2,000 2,000,000
City & County of Denver Airport
System Series E MB
3.30% 04/01/96 2,000 2,000,000
City & County of Denver City and
County Airport System Revenue
Series E MB
3.60% 04/22/96 7,075 7,075,000
City and County of Denver Airport
System Subordinated MB
3.55% 04/01/96 3,000 3,000,000
Colorado Health Facilities Authority
(Sisters of Charity Health Care
System-Cincinnati) Series
1992C DN
3.35%** 04/07/96 8,500 8,500,000
------------
24,575,000
------------
DELAWARE -- 1.8%
Delaware Economic Development
Authority (Normaco of Delaware,
Inc. Project) Series 1984 DN
3.60%** 04/07/96 6,600 6,600,000
------------
FLORIDA -- 3.3%
Dade County (Youth Fair &
Exposition Project) Series
1995 DN
3.45%** 04/07/96 5,000 5,000,000
Jacksonville TECP
3.45% 08/21/96 6,700 6,700,000
------------
11,700,000
------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
GEORGIA -- 3.4%
Clayton County Development
Authority (McIlrath Corporation
Project) Series 1986 DN
3.70%** 04/07/96 $ 4,700 $ 4,700,000
Fulton County Development
Authority (Georgia Tech Athletic
Association Project) Series 1995 DN
3.45%** 04/07/96 7,500 7,500,000
------------
12,200,000
------------
HAWAII -- 1.9%
Hawaii Refunding Topstar Custodial
Receipts Series 1993CC DN
3.40%** 04/07/96 6,700 6,700,000
------------
ILLINOIS -- 9.9%
Chicago GO Series 1985 DN
4.50%** 04/07/96 1,245 1,245,000
Illinois Development Finance
Authority (Foundation for Safety &
Health Project) Series 1992 DN
3.50%** 04/07/96 5,600 5,600,000
Illinois Development Finance
Authority IDR (Royal Continental
Box Company Project) Series
1995A DN
3.80%** 04/07/96 1,100 1,100,000
Illinois Development Finance
Authority IDR (Webster-Wayne
Shopping Center Ltd.)
Series 1995 DN
3.50%** 04/07/96 1,775 1,775,000
Illinois Development Finance
Authority IDR (6 West Hubbard
Street Project) Series 1986 DN
4.00%** 04/07/96 3,410 3,410,000
Illinois Developmental Finance
Authority PCR (Diamond Star
Motors Company Project)
Series 1985 DN
3.95%** 04/01/96 1,500 1,500,000
Illinois Educational Facilities
Authority Revenue (The Art
Institute of Chicago Project)
Series 1992 DN
3.75%** 04/07/96 6,300 6,300,000
Illinois Health Facility Authority
Series 1990 MB
3.40% 10/15/96 3,000 3,000,000
See accompanying notes to financial statements.
9
<PAGE>
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
ILLINOIS (CONTINUED)
Illinois Housing Development
Authority (Homeowner Mortgage
Project) Series 1995 Subseries
E-2 MB
3.75% 09/03/96 $ 4,000 $ 4,000,000
Illinois Series 1995 RAN
4.50% 06/10/96 2,000 2,002,222
Illinois Series 1995 RAN
4.50% 06/10/96 3,000 3,003,443
Tinley Park Multi-Family Housing
Mortgage Refunding (Edgewater
Walk Phase IIIA & IIIB Project)
Series 1994 DN
3.50%** 04/07/96 1,000 1,000,000
Village of Schiller Park IDR
(Victor Products Corporation
Project) Series 1995 DN
3.90%** 04/07/96 1,500 1,500,000
------------
35,435,665
------------
INDIANA -- 0.7%
Indiana Housing Finance Authority
Single Family Mortgage Series
1994C MB
4.00% 07/01/96 1,000 1,000,000
South Bend Redevelopment
Authority (CollegeFootball Hall of
Fame Project) Series 1994 DN
3.90%** 04/07/96 1,500 1,500,000
------------
2,500,000
------------
IOWA -- 0.5%
Iowa Higher Education Loan
Authority Private College Facilities
Series 1985 DN
3.80%** 04/07/96 2,000 2,000,000
------------
KENTUCKY -- 1.4%
Maysville Solid Waste Disposal
Facilities Revenue (Inland
Container Corporation Project)
Series 1992 MB
3.65% 08/26/96 5,000 5,000,000
------------
LOUISIANA -- 3.0%
Jefferson Parish Hospital Service
District #2 (East Jefferson General
Hospital Project) Series 1985 DN
3.35%** 04/07/96 10,600 10,600,000
--------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
MARYLAND -- 2.9%
Maryland IDA Finance (Brass Mill
Road Limited Partnership Facility
Project) Series 1995 DN
3.50%** 04/07/96 $ 3,910 $ 3,910,000
Maryland IDA Finance (Patapsco
Associates Limited Partnership
Facility Project) Series 1995 DN
3.50%** 04/07/96 2,370 2,370,000
Maryland State Community
Development Administration
(Department of Housing and
Community Development Single
Family Program) Series 1996 MB
3.45% 10/01/96 4,000 4,000,000
------------
10,280,000
------------
MICHIGAN -- 6.3%
Michigan State Strategic Fund
(Dow Chemical Co. Project)
Series 1986 TECP
3.20% 06/21/96 6,600 6,600,000
3.50% 08/22/96 4,500 4,500,000
Michigan Underground Storage Tank
Financial Assurance Authority
Series 1995I DN
3.30%** 04/07/96 9,100 9,100,000
Northville IDA (Thrifty Northville
Project) Series 1984 DN
3.50%** 04/07/96 2,000 2,000,000
------------
22,200,000
------------
MISSOURI -- 1.3%
Kansas City IDA (Mid America Health
Services Project) Series 1984 DN
3.70%** 04/07/96 4,500 4,500,000
------------
MONTANA -- 0.5%
Montana Housing Board (Single
Family Mortgage Project) Series
1988B-2 MB
4.30% 04/01/96 1,680 1,680,000
------------
NEBRASKA -- 0.5%
Nebraska Investment Finance
Authority Multifamily Loan (Apple
Creek Associates Project)
Series 1985A DN
3.65%** 04/07/96 1,900 1,900,000
------------
See accompanying notes to financial statements.
10
<PAGE>
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
NEVADA -- 0.3%
Henderson Public Improvement
Trust (Berry Plastics Corporation
Project) Series 1991 DN
3.90%** 04/07/96 $ 1,000 $ 1,000,000
------------
NEW HAMPSHIRE -- 1.1%
Industrial Development Solid Waste
Disposal (The United Illuminating
Company Project) Series
1990A MB
3.30% 09/03/96 4,000 4,000,000
------------
NEW JERSEY -- 0.3%
Mercer County Series 1995 TAN
4.00% 04/16/96 1,000 1,000,178
------------
NEW MEXICO -- 0.6%
New Mexico Mortgage Finance
Authority Single Family Mortgage
Series 1995H MB
3.85% 08/28/96 2,000 2,000,000
------------
NEW YORK -- 5.4%
Metropolitan Transportation Authority
(Commuter Facilities Project)
Series 1991 DN
3.20%** 04/07/96 500 500,000
New York City GO Series
1995A RAN
4.50% 04/11/96 3,800 3,800,580
New York City Series 1995B RAN
4.75% 06/28/96 13,500 13,539,429
New York Energy Research &
Development Authority PCR
(Rochester Gas & Electric
Company Project) Series 1984 DN
3.20%** 04/07/96 1,300 1,300,000
------------
19,140,009
------------
NORTH CAROLINA -- 6.0%
Wake County Industrial Facilities &
Pollution Control Financing Authority
(Carolina Power & Light Company
Project) Series 1985C DN
3.65%** 04/07/96 13,800 13,800,000
Wake County Industrial Facilities &
Pollution Control Financing
Authority (Carolina Power & Light
Company Project) Series
1985B DN
3.65%** 04/07/96 7,600 7,600,000
------------
21,400,000
------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
NORTH DAKOTA -- 0.9%
Mercer County Solid Waste Disposal
(United Power Association Project)
Series 1995A MB
3.30% 09/01/96 $ 3,200 $ 3,200,000
------------
OHIO -- 6.7%
Avon City Series 1995 BAN
4.14% 07/03/96 870 870,510
Clermont County Hospital Facilities
(Mercy Health Systems Project)
Series 1994B DN
3.55%** 04/07/96 5,000 5,000,000
Columbus City School District
Series 1995 TRAN
3.70% 06/28/96 3,500 3,499,403
Cuyahoga County Hospital
Improvement Series 1990 DN
3.40%** 04/07/96 600 600,000
Franklin County Hospital (Holy Cross
Health System Corporation Project)
Series 1995 DN
3.35%** 04/07/96 2,300 2,300,000
Ohio Air Quality Development
Authority Collateralized Pollution
Control (The Cleveland Electric
Illuminating Co.) Series
1988B TECP
3.10% 04/22/96 5,450 5,450,000
Stark County Series 1995-2 BAN
4.18% 06/20/96 3,000 3,001,451
Toledo Improvement GO Notes
Series 1995-2
3.89% 05/15/96 3,000 3,000,139
------------
23,721,503
------------
OREGON -- 4.0%
Klamath Falls Electric (Salt Caves
Hydro-Electric Project) Series
1986A MB
4.40% 05/01/96 1,000 1,000,000
Klamath Falls Electric (Salt Caves
Hydroelectric Project) Series 1995E MB
4.40% 05/01/96 3,000 3,000,000
Oregon GO (Veterans' Welfare
Project) Series 1985 Subseries
73G DN
3.20%** 04/07/96 10,400 10,400,000
------------
14,400,000
------------
See accompanying notes to financial statements.
11
<PAGE>
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA -- 1.7%
Berks CO IDA (Sixth & Penn Streets
Project) Series 1988 DN
3.40%** 04/07/96 $ 200 $ 200,000
Luzerne County Pennsylvania IDA
(Regency Thermographers Project)
Series 1994 DN
3.65%** 04/07/96 1,495 1,495,000
Montgomery County IDA (PECO
Energy Project) Series 1995 TECP
3.20% 06/13/96 3,000 3,000,000
Philadelphia Series 1995A TRAN
4.50% 06/27/96 1,000 1,001,260
Sayre Health Care Facilities Authority
(VHA of Pennsylvania, Inc.
Capital Asset Finance Program
Project) Series 1988K DN
3.25%** 04/07/96 300 300,000
------------
5,996,260
------------
RHODE ISLAND -- 0.6%
Rhode Island Housing & Mortgage
Finance Corporation Home
Ownership Opportunity
Series 1996 MB
3.45% 04/02/96 2,200 2,200,000
------------
TENNESSEE -- 4.9%
Knox County Health, Educational &
Housing Facilities Authority
(Mercy Health Care System
Province of Cincinnati Project)
Series 1985B DN
3.35%** 04/07/96 4,000 4,000,000
Montgomery County Public Building
Authority GO (Tennessee County
Loan Pool Project) Series 1995 DN
3.50%** 04/07/96 8,600 8,600,000
Montgomery County Public Building
Authority Pooled Financing GO (Montgomery
County Loan Project) 1995 DN
3.50%** 04/07/96 5,000 5,000,000
------------
17,600,000
------------
TEXAS -- 11.1%
Angelina and Neches River
Authority Solid Waste Disposal
(Temple-Eastex Incorporated
Project) Series 1993 MB
3.65% 08/26/96 1,000 1,000,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
TEXAS (CONTINUED)
Austin Higher Education Authority
(St. Edwards University Project)
Series 1995 DN
3.55%** 04/07/96 $ 2,000 $ 2,000,000
Brazos River Harbor Navigation
District (Dow Chemical Company)
Series 1991 TECP
3.50% 08/21/96 4,000 4,000,000
Dallas Water Utility Department
TECP
3.40% 04/26/96 4,700 4,700,000
Harris County Health Facilities
Development Corporation
Revenue (Memorial Hospital
System) Series 1994 B TECP
3.40% 05/06/96 13,900 13,900,000
Houston Water and Sewer System
Series A TECP
3.40% 06/06/96 7,000 7,000,000
North Texas Higher Education
Authority Inc. Texas Student Loan
Revenue Refinancing Series
1996A DN
3.55%** 04/07/96 1,000 1,000,000
San Antonio Housing Finance
Corporation (Wellington Place
Apartments Project) Series
1995A DN
3.60% ** 04/07/96 2,945 2,945,000
Texas Series 1995A TRAN
4.75% 08/30/96 1,000 1,003,269
Texas Veterans Housing Association
Funding II Series 1995 MB
3.90% 11/06/96 2,000 2,000,000
------------
39,548,269
------------
UTAH -- 1.3%
Intermountain Power Agency Power
Supply Revenue Series 1985F MB
3.35% 09/15/96 4,500 4,500,000
------------
VERMONT -- 0.7%
Vermont Educational & Health
Buildings Finance Agency
(VHA of New England Capital
Asset Financing Program Project)
Series 1985G DN
3.30%** 04/07/96 2,560 2,560,000
------------
See accompanying notes to financial statements.
12
<PAGE>
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
WASHINGTON -- 6.3%
Washington Public Power Supply
System (Nuclear Project
Number 1) Series 1993 DN
3.35%** 04/07/96 $18,800 $ 18,800,000
Yakima County Public Corporation
(Jeld-Wen, Inc. Project) Series
1988 DN
3.50%** 04/07/96 3,540 3,540,000
------------
22,340,000
------------
WISCONSIN -- 1.7%
Racine School District
Series 1995 TRAN
4.50% 08/23/96 6,000 6,010,196
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $354,889,912*) 99.7% 354,889,912
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.3% 945,541
-------- ------------
NET ASSETS (Equivalent $1.00 per
share based on 40,271,938
Institutional shares, 315,569,594
Service shares and 18,222
Investor A shares outstanding) 100.0% $355,835,453
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($355,835,453 (DIVIDE) 355,859,754) $1.00
=====
- --------------------
* Aggregate cost for federal tax purposes.
** Rates shown are the rates as of March 31, 1996, and the maturities
shown are the longer of the next interest readjustment date or the
date the principal amount owed can be recovered through demand.
See accompanying notes to financial statements.
13
<PAGE>
COMPASS CAPITAL FUNDS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
NEW JERSEY 98.9%
Barnegat Township GO Series 1995 MB
4.70% 11/01/96 $ 130 $ 130,703
Berkeley Township GO Series 1995 MB
4.625% 11/15/96 250 251,169
Camden County Improvement Authority
(Jewish Community Center Project)
Series 1995 DN
3.25%** 04/03/96 1,525 1,525,000
Cumberland County Series 1995 BAN
4.00% 05/17/96 250 250,093
Deptford Township GO Series 1995 MB
5.00% 12/01/96 101 101,860
East Windsor Township Series 1995 BAN
4.55% 04/18/96 2,000 2,000,513
Essex County Public Improvement
Authority Revenue (County Asset
Sale Project) Series 1995 DN
3.15%** 04/07/96 3,500 3,500,000
Hamilton Township Series 1996 BAN
3.875% 01/31/97 2,669 2,676,527
Health Care Facilities (Hospital Capital
Asset Financing Project) Series 1985A DN
3.05%** 04/07/96 600 600,000
Health Care Facilities (Hospital Capital
Asset Financing Project) Series 1985C DN
3.05%** 04/04/96 200 200,000
Manasquan Board of Education GO
Series 1995 MB
5.125% 01/15/97 160 161,557
Mercer County Improvement Authority
Revenue Lease Series 1996 MB
4.25% 12/01/96 415 416,879
Mercer County Improvement Authority
(Pooled Government Loan Project)
Series 1985 DN
3.00%** 04/07/96 3,300 3,300,000
Millville Public Improvement Sewer
Revenue Series 1996 MB
5.00% 03/01/97 270 273,239
Mount Olive Township Series 1996 BAN
3.50% 11/27/96 2,470 2,473,150
New Jersey Economic Development
Authority (East Meadow Corporation
Project B) Series 1986B DN
3.60%** 04/07/96 4,770 4,770,000
New Jersey Economic Development
Authority (Fellowship Valley Project)
Series 1995B DN
3.35%** 04/07/96 1,000 1,000,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
NEW JERSEY (CONTINUED)
New Jersey Economic Development
Authority (Filtra Corporation Project)
Series 1995 DN
3.40%** 04/01/96 $1,000 $ 1,000,000
New Jersey Economic Development
Authority (Franciscan Oaks Project B)
Series 1992B DN
3.30%** 04/03/96 400 400,000
New Jersey Economic Development
Authority (Industrial Improvements)
Series 1992C DN
3.35%** 04/07/96 530 530,000
New Jersey Economic Development
Authority (International Vitamin
Corporation Project)
Series 1995 DN
3.40%** 04/04/96 1,000 1,000,000
New Jersey Economic Development
Authority (Keystone Project)
Series 1992 MB
3.10% 05/10/96 2,000 2,000,000
3.35% 07/12/96 2,140 2,140,000
New Jersey Economic Development
Authority (Local Housing)
Series 1992D DN
3.35%** 04/07/96 2,065 2,065,000
New Jersey Economic Development
Authority (Manhattan Bagel
Company, Inc. Project)
Series 1995 DN
3.40%** 04/07/96 1,000 1,000,000
New Jersey Economic Development
Authority (Nandan Co. Project)
Series 1995 DN
3.75%** 04/07/96 1,000 1,000,000
New Jersey Economic Development
Authority (Public Service Electric
and Gas Project) Series 1995 MB
3.20% 04/10/96 1,000 1,000,000
New Jersey Economic Development
Authority (Public Service Electric
and Gas Project) Series 1995 MB
3.05% 04/10/96 2,000 2,000,000
New Jersey Economic Development
Authority (Resource Recovery
Improvements) Series 1989J DN
3.35%** 04/07/96 650 650,000
See accompanying notes to financial statements.
14
<PAGE>
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
NEW JERSEY (CONTINUED)
New Jersey Economic Development
Authority (Russell Berrie Company
Project) Series 1983 DN
3.15%** 04/03/96 $ 200 $ 200,000
New Jersey Economic Development
Authority (Thermal Energy Ltd.
Project) Series 1995 MB
3.70% 12/01/96 500 500,000
New Jersey Economic Development Authority
Revenue (Hillcrest Health Services Systems
Project) Series 1995 DN
3.30%** 04/07/96 5,600 5,600,000
New Jersey Economic Development
Authority TECP
3.30% 05/23/96 1,000 1,000,000
New Jersey Economic Development
Authority TECP
3.10% 04/09/96 1,000 1,000,000
New Jersey Health Care Facilities
Series 1985D DN
3.05%** 04/04/96 200 200,000
New Jersey Series 1995 TRAN
3.35% 06/14/96 3,500 3,500,000
New Jersey Sports and Exposition
Authority State Contract
Series 1992C DN
3.10%** 04/07/96 4,400 4,400,000
New Jersey State Custodial Receipts
Series 1995D DN
3.20%** 04/07/96 2,200 2,200,000
New Jersey Transportation Trust Fund
Authority Series 1993A MB
3.80% 06/15/96 800 800,000
New Jersey Transportation Trust Fund
Authority Series 1995A DN
3.35%** 04/07/96 4,700 4,700,000
New Jersey Turnpike Authority
Series 1991D DN
3.05%** 04/07/96 5,500 5,500,000
North Brunswick Township
Series 1995 BAN
3.89% 05/22/96 775 775,182
4.00% 08/06/96 2,000 2,004,097
Parsippany Troy Hills Township
(Cash Flow Management)
Series 1995 BAN
4.00% 11/01/96 2,000 2,003,377
Rumson Series 1995 BAN
3.84%** 06/21/96 400 400,041
PAR
MATURITY (000) VALUE
---------- -------- ------------
NEW JERSEY (CONTINUED)
Salem County IDA PCR (E.I. Dupont de
Nemours and Company Project)
Series 1982A DN
3.40%** 04/07/96 $2,500 $ 2,500,000
Sayreville Series 1995 BAN
4.00% 04/16/96 1,500 1,500,174
Sea Isle City GO Series 1995 MB
4.50% 12/01/96 375 377,101
Woodbridge Township (Cash Flow
Management) Series 1995 BAN
3.67% 07/03/96 500 499,679
------------
78,075,341
------------
PUERTO RICO 0.5%
Puerto Rico Government
Development Bank (Adjustable
Refunding Bonds) Series 1985 DN
2.80%** 04/07/96 100 100,000
Puerto Rico Highway and Transportation
Authority Series 1993X DN
2.80%** 04/07/96 100 100,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control
Facilities Financing Authority
(Ana G. Mendez Educational
Project) Series 1985 DN
3.40%** 04/07/96 200 200,000
------------
400,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $78,475,341*) 99.4% 78,475,341
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.6% 436,420
---- ------------
NET ASSETS (Applicable to 2,250,000
Institutional shares, 58,922,588
Service shares and 17,756,464
Investor A share
outstanding) 100.0% $78,911,761
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($78,911,761 (DIVIDE) 78,929,052) $1.00
=====
- -----------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1996, and the maturities
shown are the longer of the next interest readjustment date or the
date the principal amount owed can be recovered through demand.
See accompanying notes to financial statements.
15
<PAGE>
COMPASS CAPITAL FUNDS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
NORTH CAROLINA 92.4%
Bladen County Industrial Facilities
and Pollution Control Financing
Authority Resource Recovery
(BCH Energy L.P. Project) Series
1993 DN
3.75%** 04/07/96 $2,000 $ 2,000,000
Catawba County Industrial Facilities
and Pollution Control Financing
Authority (WSMP, Inc. Project)
Series 1992 DN
3.65%** 04/07/96 500 500,000
Charlotte Airport Revenue
Refunding Series 1993A DN
3.30%** 04/07/96 300 300,000
Charlotte GO (Escrowed in US
Government Securities) Series
1986 MB
7.00% 07/01/96 2,000 2,045,936
Cumberland County GO Series
1993 MB
5.60% 02/01/97 650 661,911
Durham County Public
Improvement Series 1993 DN
3.25%** 04/07/96 2,350 2,350,000
Durham GO Series 1988 MB
6.50% 10/01/96 500 507,203
Durham Public Improvement Series
1993 DN
3.30%** 04/07/96 3,535 3,535,000
Green County Industrial Facilities and
Pollution Control Financing Authority
(Federal Paper Board Company, Inc. Project)
Series 1989 DN
3.50%** 04/07/96 1,100 1,100,000
Green County Industrial Facilities
and Pollution Control Financing
Authority IDA (Snow Hill Tape
Corporation Project) Series
1995 DN
3.50%** 04/07/96 2,000 2,000,000
Greensboro Certificates of
Participation (Greensboro
Coliseum Complex Improvement
Project) Series 1995A DN
3.30%** 04/07/96 1,000 1,000,000
Greensboro GO Refunding Bonds
Series 1993 MB
4.80% 05/01/96 1,000 1,001,412
PAR
MATURITY (000) VALUE
---------- -------- ------------
NORTH CAROLINA (CONTINUED)
Guilford County Industrial Facilities
and Pollution Control Financing
Authority (Bonset America
Corporation Project) Series
1989 DN
3.85%** 04/07/96 $ 500 $ 500,000
Guilford County Industrial Facilities
and Pollution Control Financing
Authority (U.S. Label Corporation
Project) Series 1995 DN
3.50%** 04/07/96 500 500,000
Iredell County Industrial Facilities
and Pollution Control Financing
Authority (Purina Mills, Inc.
Project) Series 1995 DN
3.45%** 04/07/96 4,000 4,000,000
Lee County Industrial Facilities and
Pollution Control Financing
Authority Adjustable Mode
Industrial Development Revenue
Refunding (Trion, Inc. Project)
Series 1995 DN
3.40%** 04/07/96 1,700 1,700,000
Lenoir County Industrial Facilities
and Pollution Control Financing
Authority Resource Recovery
(Carolina Project) Series
1995 DN
3.75%** 04/07/96 4,000 4,000,000
Lincoln County Industrial Facilities
and Pollution Control Financing
Authority Revenue (Cochrane Co.
Project) Series 1990 DN
3.60%** 04/03/96 1,325 1,325,000
Mecklenberg County GO
(Escrowed in US Treasury
Securities) Series 1990 MB
6.75% 04/01/96 550 550,000
Mecklenberg County Series
1996C DN
3.40%** 04/01/96 3,000 3,000,000
Mecklenburg County GO Series
1988 DN
3.40%** 04/07/96 500 500,000
Mecklenburg County GO Series
1988 DN
3.40%** 04/07/96 2,000 2,000,000
See accompanying notes to financial statements.
16
<PAGE>
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
NORTH CAROLINA (CONTINUED)
Mecklenburg County Industrial
Facilities and Pollution Control
Financing Authority (Otto
Industries, Inc. Project) Series
1988 DN
3.40%** 04/07/96 $2,950 $ 2,950,000
Mecklenburg County Industrial
Facility and Pollution Control
Financing Authority Industrial
(Griffith Micro Science Project)
Series 1995 DN
3.50%** 04/07/96 1,500 1,500,000
Mecklenburg County Lease
(The YMCA of Greater Charlotte
Project) Series 1996 DN
3.50%** 04/07/96 3,000 3,000,000
New Hanover County Industrial
Facilities and Pollution Control
Financing Authority (Interroll
Corp. Project) Series 1989 DN
3.65%** 04/04/96 1,395 1,395,000
North Carolina Agricultural Finance
Authority Agricultural
Development (Harvey Fertilizer
& Gas Company Project)
Series 1995 DN
3.50%** 04/07/96 1,740 1,740,000
North Carolina Eastern Municipal
Power Agency (Power Systems
Revenue Project) Series 1988B
TECP
3.15%** 04/02/96 1,000 1,000,000
North Carolina Eastern Municipal
Power Agency Power System
Revenue Series 1988 TECP
3.40% 04/02/96 2,600 2,600,000
North Carolina Education Facilities
Finance Agency (The Bowman
Gray School of Medicine Project)
Series 1990 DN
3.35%** 04/07/96 1,000 1,000,000
North Carolina Educational Facilities
Finance Agency (Duke University
Project) Series 1991B DN
3.25%** 04/07/96 1,900 1,900,000
North Carolina Industrial Facilities
and Pollution Control Financing
Authority (GVK America, Inc.
Project) Series 1990 MB
3.90% 04/30/96 2,765 2,765,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
NORTH CAROLINA (CONTINUED)
North Carolina Medical Care
Commission (Baptist Hospital
Project) Series 1992B DN
3.35%** 04/07/96 $2,200 $ 2,200,000
North Carolina Medical Care
Commission (Pooled Equipment
Financing Project) Series 1985
DN
3.35%** 04/07/96 800 800,000
North Carolina Medical Care
Commission Hospital Revenue
(Duke University Hospital Project)
Series 1985D DN
3.25%** 04/07/96 300 300,000
North Carolina Medical Care
Commission Hospital Revenue
(Duke University Hospital Project)
Series 1993A DN
3.25%** 04/07/96 500 500,000
North Carolina Medical Care
Commission Refunding
(Moses H. Cone Memorial
Hospital Project) Series 1993 DN
3.35%** 04/07/96 3,600 3,600,000
North Carolina Medical Care
Community Hospital (Moses H.
Cone Memorial Hospital
Project) Series 1995 DN
3.35%** 04/07/96 700 700,000
North Carolina Medical Care
Community Hospital Access
(Pooled Financing Project)
Series 1991A DN
3.75%** 04/01/96 3,000 3,000,000
North Carolina Municipal Power
Agency Number 1 (Catawba
Project) Series 1996 TECP
3.25% 05/16/96 3,000 3,000,000
Person County Industrial Facilities
and Pollution Control Financing
Authority Solid Waste Disposal
(Carolina Power & Light Project)
Series 1986 DN
3.85%** 04/01/96 400 400,000
Pitt County GO Series 1990 MB
6.60% 02/01/97 500 512,346
University of North Carolina Chapel
Hill School of Medicine
Ambulatory Care Clinic
Series 1990 DN
3.30%** 04/07/96 1,200 1,200,000
See accompanying notes to financial statements.
17
<PAGE>
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
NORTH CAROLINA (CONTINUED)
Wake County GO Series 1993 MB
4.20% 04/01/96 $3,000 $ 3,000,000
Wake County Industrial Facilities
and Pollution Control Financing
Authority (Carolina Power & Light)
Series 1985C DN
3.65%** 04/07/96 2,100 2,100,000
Wake County Industrial Facilities
and Pollution Control Financial
Authority (Carolina Power & Light)
Series 1990A TECP
3.45% 04/02/96 3,500 3,500,000
Wake County Industrial Facilities
and Pollution Control Financing
Authority (Carolina Power & Light
Project) Series 1990B DN
3.65%** 04/07/96 1,500 1,500,000
Wake County Industrial Facility and
Pollution Control Financing
Authority (Carolina Power & Light
Co.) Series 1985A DN
3.30%** 04/07/96 1,000 1,000,000
Wilmington GO Series 1994 MB
5.50% 06/01/96 1,000 1,003,265
Wilson County Industrial Facilities
and Pollution Control Financing
Authority (Chip Project) Series
1989 DN
3.65%** 04/07/96 1,000 1,000,000
Winston-Salem Certificates of
Participation (Risk Acceptance
Management Corp.) Series
1988 DN
3.40%** 04/07/96 500 500,000
Winston-Salem Water and Sewer
System Series 1994 DN
3.30%** 04/07/96 200 200,000
------------
84,942,073
------------
PUERTO RICO -- 6.3%
Puerto Rico Government
Development Bank TECP
3.00% 04/23/96 4,000 4,000,000
Puerto Rico Government
Developmental Bank Refunding
Series 1985 DN
2.80%** 04/07/96 300 300,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
PUERTO RICO (CONTINUED)
Puerto Rico Industrial, Tourist,
Education, Medical, and
Environmental Control Finance
Authority Series 1994A TECP
(Banque Paribas LOC)
3.25% 05/22/96 $1,500 $ 1,500,000
-----------
5,800,000
-----------
VIRGIN ISLANDS -- 1.1%
Virgin Islands Housing Finance Authority
Single Family Revenue Series 1995 MB
3.50% 11/01/96 1,000 1,000,000
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $91,742,073*) 99.8% 91,742,073
OTHER ASSETS IN EXCESS OF
LIABILITES 0.2% 227,696
------ -----------
NET ASSETS (Equivalent to $1.00
per share based on 85,381,240
Institutional shares, 6,511,888
Service shares and 73,142
Investor A shares outstanding)
100.0% $91,969,769
====== ===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($91,969,769 (DIVIDE) 91,966,270) $1.00
=====
- -------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1996, and the maturities shown are
the longer of the next interest readjustment date or the date the principal
amount owed can be recovered through demand.
See accompanying notes to financial statements.
18
<PAGE>
COMPASS CAPITAL FUNDS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
OHIO 97.6%
Avon Local School District Series
1995 BAN
4.16% 07/11/96 $1,000 $ 1,001,324
Avon Local School District Series
1996 BAN
3.94% 07/11/96 1,000 1,001,335
Beaver Creek Local School District
Series 1996 BAN
4.03% 07/18/96 1,600 1,602,469
Bedford Heights Jail Facilities
Series 1995 BAN
3.98% 10/24/96 785 785,845
Belmont County Series 1995 BAN
4.34% 08/30/96 500 500,575
4.09% 11/26/96 300 300,547
3.89% 12/19/96 750 751,502
Berea City Series 1995 BAN
3.85% 10/24/96 475 475,516
Brooklyn City Series 1995 BAN
4.25% 06/06/96 2,000 2,001,050
Cincinnati School District Series
1995 TAN
4.31% 06/28/96 1,000 1,001,436
Columbus City School District
Series 1995 TRAN
3.70% 06/28/96 1,500 1,499,744
Cuyahoga County (St. Lukes
Hospital Project) Series 1990 DN
3.40%** 04/07/96 600 600,000
Cuyahoga County IDRB
(Pleasant Lake Associates
Project) Series 1995 DN
3.50%** 04/07/96 990 990,000
Delaware County IDRB (Air Waves,
Inc. Project) Series 1995 DN
3.65%** 04/07/96 1,000 1,000,000
East Palestine School District
Series 1996 BAN
3.50% 02/28/97 1,800 1,801,577
Erie County IDRB (Brighton Manor
Company Project) Series 1986 DN
3.65%** 04/07/96 3,100 3,100,000
Franklin County IDRB (Alco
Standard Corp. Project) Series
1994 DN
3.55%** 04/07/96 2,000 2,000,000
Greene County IDRB (AFC
Stamping & Production, Inc. &
Barsplice Products Project)
Series 1995 DN
3.65%** 04/07/96 1,000 1,000,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
OHIO (CONTINUED)
Greene County IDRB (Ashford
Center Project) Series 1995 DN
3.50%** 04/07/96 $ 630 $ 630,000
Lucas County IDRB (Vega
Industries, Inc. Project) Series
1995 DN
3.65%** 04/07/96 2,230 2,230,000
Miamisburg City Sewer System
Series 1995 MB
3.75% 11/15/96 300 300,000
Montgomery County Health
Facilities (Sisters of Charity
Health Care Project) Series
1995 DN
3.35%** 04/07/96 1,400 1,400,000
Ohio Air Quality Development
Authority (USX Project) Series
1995 MB
3.70% 05/01/96 1,730 1,730,000
Ohio Air Quality Development
Authority (PPG Industries, Inc.
Project) Series 1988A DN
3.50%** 04/07/96 1,700 1,700,000
Ohio Housing Finance Agency
Multifamily Housing (Lincoln Park
Association Project) Series
1985 MB
4.25% 05/01/96 690 690,000
Ohio IDRB (Anomatic Corp.
Project) Series 1994 DN
3.65%** 04/04/96 1,610 1,610,000
Ohio State Environmental
Improvement PCRB (U.S. Steel
Corp. Project) Series 1986 DN
3.70%** 04/07/96 1,000 1,000,000
Ohio State Water Authority Solid
Waste Disposal (American Steel
& Wire Corporation Project)
Series 1995 DN
3.70%** 04/07/96 3,600 3,600,000
Portage County IDRB (Lovejoy
Industries Project) Series
1994 DN
3.70%** 04/07/96 1,135 1,135,000
Sandusky County IDRB (Brighton
Manor Co. Project) Series
1986 DN
3.65%** 04/07/96 1,000 1,000,000
See accompanying notes to financial statements.
19
<PAGE>
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
OHIO (CONTINUED)
Solon City IDRB (Cleveland Twist
Drill Company Project) Series
1995 DN
3.70%** 04/07/96 $1,800 $ 1,800,000
Stark County Series 1995 BAN
4.15% 04/03/96 1,000 1,000,016
4.18% 06/20/96 1,000 1,000,484
4.14% 10/18/96 2,000 2,002,306
Summit County IDRB (Austin
Printing Company, Inc. Project)
Series 1994 DN
3.65%** 04/07/96 625 625,000
Summit County IDRB (Forest
Manufacturing Project) Series
1994 DN
3.65%** 04/04/96 500 500,000
Summit County Series 1996 BAN
4.50% 06/06/96 2,136 2,140,367
Toledo Improvement GO Notes
Series 1995-2
3.89% 05/15/96 3,000 3,000,139
Toledo Ohio School District
(Cashflow Program Certificates)
Series 1995 BAN
4.52% 06/28/96 2,000 2,002,882
Trumbull County IDRB (ATD
Corporation Project) Series
1995 DN
3.65%** 04/07/96 2,000 2,000,000
University of Cincinnati Series
1995S RAN
4.25% 08/28/96 900 900,880
Upper Arlington City School District
Series 1995 MN
4.20% 04/11/96 1,500 1,500,222
Wayne City Local School District
Series 1995 BAN
4.34% 07/18/96 500 500,926
Westlake Economic Development
(Oaks Development Company
Project) Series 1994 DN
3.50%** 04/07/96 2,000 2,000,000
------------
59,411,142
------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
VIRGIN ISLANDS -- 1.6%
Virgin Islands Housing Finance
Authority Single Family Mortgage
Revenue Series 1995B MB
3.50% 11/01/96 $1,000 $ 1,000,000
------------
TOTAL INVESTMENTS IN
SECURITIES
(Cost $60,411,142*) 99.2% 60,411,142
OTHER ASSETS IN EXCESS OF
LIABILITES 0.8% 469,835
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 15,701,397
Institutional shares, 42,681,390
Service shares and 2,506,570
Investor A shares
outstanding) 100.0% $60,880,977
====== ===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($60,880,977 (DIVIDE) 60,889,357) $1.00
=====
- -----------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1996, and the maturities
shown are the longer of the next interest readjustment date or the
date the principal amount owed can be recovered through demand.
See accompanying notes to financial statements.
20
<PAGE>
COMPASS CAPITAL FUNDS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA -- 88.9%
Allegheny County Higher Education
Building Authority (University of
Pittsburgh Project) Series
1985C DN
3.20%** 4/07/96 $2,090 $ 2,090,000
Allegheny County Hospital
Development Authority (MaGee-
Womens Hospital Project)
Series 1993 MB
3.80% 10/01/96 500 500,000
Allegheny County IDA (Allegheny
General Hospital Project) Series
1995B DN
3.20%** 04/03/96 9,400 9,400,000
3.20%** 04/07/96 1,500 1,500,000
Allegheny County IDA (Duquesne
Light Co. Project) Series 1990 MB
3.50% 06/06/96 5,000 5,000,000
Allegheny County IDA (Duquesne
Light Co. Project) Series 1992 MB
3.75% 11/07/96 6,000 6,000,000
Allegheny County IDA (Duquesne
Light Co. Project) Series
1992A MB
3.75% 11/07/96 2,000 2,000,000
Allegheny County Series 1987F DN
4.375%** 04/07/96 885 885,000
Allegheny County Series 1987G MB
4.60% 06/01/96 230 230,000
Allentown Redevelopment Authority
Multi-Family Housing Bonds
(Arcadia Associates Project)
Series 1990 DN
4.00%** 04/07/96 6,000 6,000,000
Beaver County IDA PCRB (Atlantic
Richfield Co. Project) Series
1995 DN
3.40%** 04/07/96 12,850 12,850,000
Beaver County IDA PCRB
(Duquesne Light Co. Project)
Series 1990A DN
3.30%** 04/07/96 600 600,000
Beaver County IDA PCRB
(Duquesne Light Co. Project)
Series 1990B DN
3.30%** 04/07/96 10,100 10,100,000
Beaver County IDA PCRB
(Duquesne Light Co. Project)
Series 1990C DN
3.25%** 04/07/96 2,500 2,500,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA (CONTINUED)
Beaver County IDA PCRB
(Duquesne Light Co. Project)
Series 1993A DN
3.70% 05/14/96 $ 2,700 $ 2,700,000
3.45% 05/15/96 6,700 6,700,000
Beaver County IDA PCRB
(Duquesne Light Co. Project)
Series 1994A MB
3.15% 05/08/96 1,400 1,400,000
Beaver County IDA PCRB
(Toledo Edison Project) Series
1992E TECP
3.25% 06/05/96 8,250 8,250,000
Bedford County IDA IDRB
(Sepa, Inc. Facility Project)
Series 1985 DN
3.45%** 04/07/96 2,000 2,000,000
Berks County IDA (Grafika
Commercial Printing, Inc.) Series
1995 DN
3.95%** 04/07/96 1,195 1,195,000
Berks County IDA (Lutheran Home
Topton Project) Series 1995 DN
3.675%** 04/07/96 1,900 1,900,000
Berks County IDA (Richard J. Caron
Foundation Project) Series
1996 DN
3.675%** 04/03/96 2,000 2,000,000
Berks County IDA (Sixth and Penn
Street Project) Series 1988 DN
3.40%** 04/07/96 200 200,000
Bradford County IDA (Guthrie Inn
Project) Series 1984 DN
3.70%** 04/01/96 3,300 3,300,000
Bucks County IDA (SHV Real
Estate, Inc. Project) Series
1985 DN
3.40%** 04/07/96 1,300 1,300,000
Bucks County IDA (Sundstrand
Corp. Project) Series 1991 DN
3.45%** 04/07/96 1,505 1,505,000
Bucks County IDA (USX Corp.
Project) Series 1995 MB
3.70% 05/01/96 1,360 1,360,000
Cambria County IDA Resource
Recovery (Cambria Cogen Co.
Project) Series 1989V DN
3.60%** 04/07/96 21,800 21,800,000
See accompanying notes to financial statements.
21
<PAGE>
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA (CONTINUED)
Cambria County IDA Resource
Recovery (Cambria Cogen Co.
Project) Series 1991V DN
3.60%** 04/07/96 $ 5,400 $ 5,400,000
Carbon County IDA (Panther
Creek Partner Project) Series
1990A MB
3.30% 04/26/96 2,355 2,355,000
3.70% 05/14/96 4,310 4,310,000
3.45% 05/15/96 7,950 7,950,000
3.45% 05/24/96 300 300,000
Carbon County IDA (Panther Creek
Partner Project) Series 1990B MB
3.25% 04/01/96 1,000 1,000,000
3.35% 04/07/96 2,000 2,000,000
3.40% 08/08/96 5,000 5,000,000
Cumberland County IDA IDRB
(Lane Enterprises, Inc. Project)
Series 1994 DN
3.95%** 04/07/96 925 925,000
Cumberland County Municipal
Authority (Presbyterian Homes
Project) Series 1993A DN
3.40%** 04/07/96 6,000 6,000,000
Dauphin County General Authority
Series 1986 MB
4.30% 06/03/96 1,000 1,001,634
Delaware County IDA Airport
Facilities (United Parcel Service
Project) Series 1985 DN
3.70%** 04/01/96 1,200 1,200,000
Delaware County IDA PCRB (B.P.
Oil, Inc. Project) Series 1985 DN
3.85%** 04/01/96 17,000 17,000,000
Delaware County IDA PCRB (B.P.
Oil, Inc. Project) Series 1995 DN
3.85%** 04/01/96 1,750 1,750,000
Delaware County IDA PCRB
(PECO Energy Project) Series
1988A MB
3.35% 05/07/96 2,750 2,750,000
3.25% 05/10/96 4,200 4,200,000
3.20% 05/30/96 3,300 3,300,000
3.30% 06/14/96 1,150 1,150,000
Delaware County IDA PCRB
(PECO Energy Project) Series
1988C DN
3.35% 05/31/96 5,000 5,000,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA (CONTINUED)
Delaware County IDA Solid Waste
(Scott Paper Co. Project) Series
1984A DN
3.80%** 04/07/96 $ 9,800 $ 9,800,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project) Series
1984B DN
3.80%** 04/07/96 8,800 8,800,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project) Series
1984C DN
3.80%** 04/07/96 10,400 10,400,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project) Series
1984D DN
3.35%** 04/07/96 1,300 1,300,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project) Series
1984E DN
3.35%** 04/07/96 5,600 5,600,000
East Hempfield Township IDA
(Yellow Freight System, Inc.
Project) Series 1985 DN
3.45%** 04/07/96 500 500,000
Emmaus General Authority Pooled
Loan
Series 1989B-9 DN
3.85%** 04/07/96 1,000 1,000,000
Emmaus General Authority Pooled
Loan Series 1989C-7 DN
3.40%** 04/07/96 1,300 1,300,000
Geisinger Authority Health System
Series 1992B DN
3.60%** 04/01/96 7,000 7,000,000
Lehigh County IDA PCRB
(Allegheny Electric Co-op, Inc.
Project) Series 1984 DN
3.60%** 04/07/96 900 900,000
Lehigh County IDA PCRB
(Allegheny Electric Co-op, Inc.
Project) Series 1985A DN
3.40%** 04/07/96 1,100 1,100,000
Lehigh County Series 1984 DN
3.30%** 04/07/96 6,095 6,095,000
Lehigh County Series 1985B DN
3.30%** 04/07/96 2,170 2,170,000
Littlestown IDA (Hanover House
Industries Project) Series
1987 DN
3.50%** 04/07/96 2,000 2,000,000
See accompanying notes to financial statements.
22
<PAGE>
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA (CONTINUED)
Lower Gwynedd Township Series
1996 TRAN
3.96% 12/31/96 $ 500 $ 501,298
Montgomery County Higher
Education and Health Authority
Hospital Series 1988 DN
3.30%** 04/07/96 4,700 4,700,000
Montgomery County IDA
(H.P. Cadwallander, Inc. Project)
Series 1995 DN
3.95%** 04/07/96 1,000 1,000,000
Montgomery County IDA (One
Valley Square Project) DN
3.35%** 04/07/96 1,800 1,800,000
Montgomery County IDA (PECO
Energy Project) Series 1994A MB
3.70% 04/09/96 5,260 5,260,000
3.15% 04/26/96 4,350 4,350,000
3.05% 05/01/96 2,000 2,000,000
3.20% 06/10/96 3,500 3,500,000
3.05% 06/12/96 1,200 1,200,000
3.20% 06/13/96 2,250 2,250,000
Montgomery County IDA (Three
Valley Square Associates
Project) Series 1987 DN
3.40%** 04/07/96 2,800 2,800,000
Moosic GO Series 1991 MB
6.75% 12/01/96 500 509,592
Northeastern Hospital and
Education Authority (Wyoming
Valley Health Care Project)
Series 1994A DN
3.60%** 04/07/96 12,000 12,000,000
Northhampton County IDA
(Citizens Utilities Project) Series
1991 DN
3.40%** 04/07/96 2,000 2,000,000
Northumberland County IDA
(Furman Farms, Inc. Project)
Series 1995A DN
3.95%** 04/07/96 1,225 1,225,000
Northumberland County IDA
Resource Recovery (Foster
Wheeler Mt. Carmel Project)
Series 1987A DN
3.50%** 04/07/96 4,000 4,000,000
Northumberland County IDA
Resource Recovery (Foster
Wheeler Mt. Carmel Project)
Series 1987B DN
3.50%** 04/07/96 590 590,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA (CONTINUED)
Pennsylvania Economic
Development Financing
Authority (Wendt Dunnington Co.
Project) Series 1995G DN
3.50%** 04/07/96 $ 1,250 $ 1,250,000
Pennsylvania Energy Development
Authority (B&W Ebensburg
Project) Series 1986 DN
3.40%** 04/07/96 10,200 10,200,000
Pennsylvania Energy Development
Authority (B&W Ebensburg
Project) Series 1988 DN
3.40%** 04/07/96 2,900 2,900,000
Pennsylvania Energy Development
Authority (Piney Creek Project)
Series 1986A DN
3.45%** 04/03/96 7,000 7,000,000
Pennsylvania Energy Development
Authority (Piney Creek Project)
Series 1986C DN
3.45%** 04/07/96 2,700 2,700,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1984A DN
3.50%** 04/03/96 10,350 10,350,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1988A DN
3.50%** 04/07/96 1,300 1,300,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1988B DN
3.50%** 04/07/96 16,000 16,000,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1988C DN
3.50%** 04/07/96 1,700 1,700,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1988E DN
3.50%** 04/07/96 100 100,000
Pennsylvania Higher Education
Facility Authority (Carnegie
Mellon University Project) Series
1995B DN
3.85%** 04/07/96 4,300 4,300,000
Pennsylvania Higher Education
Facility Authority (Carnegie
Mellon University Project) Series
1995C DN
3.85%** 04/07/96 2,600 2,600,000
See accompanying notes to financial statements.
23
<PAGE>
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA (CONTINUED)
Pennsylvania Higher Education
Facility Authority (State System
of Higher Education Project)
Series 1995L MB
7.00% 06/15/96 $ 1,000 $ 1,007,069
Pennsylvania Higher Education
Facility Authority (Temple
University Project) Series
1984 DN
3.60%** 04/01/96 1,700 1,700,000
Pennsylvania Housing Finance
Authority Single Family Mortgage
Series 1988 MB
4.875% 04/01/96 1,815 1,815,000
Pennsylvania State GO Series
1992 MB
4.70% 07/01/96 600 601,606
Pennsylvania State Series
1995 TAN
4.50% 06/28/96 10,550 10,580,435
Pennsylvania State University
Series 1995 MB
5.25% 04/05/96 1,500 1,500,133
Philadelphia Gas Works TECP
3.25% 04/01/96 2,000 2,000,000
3.25% 04/07/96 6,000 6,000,000
3.35% 05/10/96 2,100 2,100,000
3.55% 05/14/96 1,000 1,000,000
3.15% 05/15/96 2,000 2,000,000
3.20% 06/06/96 2,000 2,000,000
3.25% 06/06/96 2,500 2,500,000
Philadelphia GO Series 1990 DN
3.45%** 04/05/96 10,000 10,000,000
Philadelphia Hospital & Higher
Educational Facility Authority
(Children's Hospital Project)
Series 1992B DN
3.60%** 04/01/96 250 250,000
Philadelphia IDA (30th Street
Station Project) Series 1987 DN
3.60%** 04/07/96 6,900 6,900,000
Philadelphia Transit Series 1995A
TRAN
4.50% 06/27/96 1,000 1,001,216
Sayre Health Care Facility Authority
(VHA Capital Financing Project)
Series 1985A DN
3.25%** 04/07/96 800 800,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA (CONTINUED)
Sayre Health Care Facility Authority
(VHA Capital Financing Project)
Series 1985B DN
3.25%** 04/07/96 $ 935 $ 935,000
Sayre Health Care Facility Authority
(VHA Capital Financing Project)
Series 1985D DN
3.25%** 04/07/96 400 400,000
Sayre Health Care Facility Authority
(VHA Capital Financing Project)
Series 1985H DN
3.25%** 04/07/96 890 890,000
Sayre Health Care Facility Authority
(VHA Capital Financing Project)
Series 1985L DN
3.25%** 04/07/96 400 400,000
Schuylkill County IDA Resource
Recovery (Kaytee Products, Inc.
Project) Series 1995 DN
3.65%** 04/07/96 4,000 4,000,000
Schuylkill County IDA (Pine Groove
Landfill Project) Series 1995 DN
3.90%** 04/07/96 5,500 5,500,000
Schuylkill County IDA Resource
Recovery (Northeastern Power
Co. Project) Series 1985 DN
3.90%** 04/01/96 715 715,000
Schuylkill County IDA Resource
Recovery (Northeastern Power
Co. Project) Series 1986B DN
4.05%** 04/01/96 26,400 26,400,000
St. Mary Hospital Authority
(Franciscan Health System
Project) Series 1985C DN
3.70%** 04/07/96 3,300 3,300,000
St. Mary Hospital Authority
(Franciscan Health System
Project) Series 1985B DN
3.70%** 04/01/96 800 800,000
Temple University (University
Funding Obligations Project)
Series 1995 MB
5.00% 05/22/96 1,500 1,501,402
University of Pittsburgh
Commonwealth System of
Higher Education (University
Capital Project)
Series 1989A DN
3.20%** 04/07/96 500 500,000
See accompanying notes to financial statements.
24
<PAGE>
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
PENNSYLVANIA (CONTINUED)
Venango IDA Resource
Recovery (Scrubgrass
Project) Series 1993 MB
3.30% 04/26/96 $ 1,300 $ 1,300,000
3.70% 05/14/96 2,250 2,250,000
3.45% 05/15/96 4,650 4,650,000
3.50% 05/15/96 1,700 1,700,000
3.35% 05/24/96 300 300,000
3.45% 05/24/96 2,475 2,475,000
3.55% 06/12/96 1,210 1,210,000
3.50% 08/16/96 3,785 3,785,000
Washington County Authority Lease Series
1985 DN
3.55%** 04/03/96 14,600 14,600,000
York County IDA PCRB
(Allied Signal, Inc.
Project) Series 1993 DN
3.55%** 04/07/96 1,000 1,000,000
York County IDA PCRB
(PECO Energy Co. Project)
Series 1993A DN
3.35%** 04/07/96 2,300 2,300,000
------------
490,574,385
------------
PUERTO RICO -- 10.9%
Puerto Rico Government Development Bank
Refunding Series 1985 DN
2.80%** 04/07/96 8,900 8,900,000
Puerto Rico Government Development Bank TECP
3.15% 04/01/96 28,400 28,400,000
Puerto Rico Highway and Transportation
Authority Series 1993X DN
2.80%** 04/07/96 700 700,000
Puerto Rico Industrial Medical and
Higher Education and Environmental
Pollution Control Authority (Inter-
American University Project)(Bank of
Tokyo) Series 1988 MB
3.15% 04/22/96 9,200 9,200,000
Puerto Rico Industrial Medical and
Higher Education and Environmental
Pollution Control Facilities Authority
(Ana G. Mendez Foundation Project) Series
1985 DN
3.40%** 04/07/96 7,200 7,200,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
PUERTO RICO (CONTINUED)
Puerto Rico Industrial, Tourist,
Education, Medical, and
Environmental Control Facilities
Authority (Inter-American
University Project) Series
1994A MB
3.50% 04/12/96 $ 5,600 $ 5,600,000
-----------
60,000,000
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $550,574,385*) 99.8% 550,574,385
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.2% 872,777
------- -----------
NET ASSETS (Equivalent to $1.00
per share based on 240,447,328
Institutional shares, 250,822,308
Service shares and 60,187,515
Investor A shares outstanding) 100.0% $551,447,162
======= ============
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PRICE PER INSTITUTIONAL,
SERVICE AND INVESTOR A
SHARE
($551,447,162 (DIVIDE) 551,457,151) $1.00
=====
-------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1996, and the maturities
shown are the longer of the next interest readjustment date or the
date the principal amount owed can be recovered through demand.
See accompanying notes to financial statements.
25
<PAGE>
COMPASS CAPITAL FUNDS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
VIRGINIA -- 88.1%
Alexandria IDA Adjustable Tender
Resource Recovery (Alexandria
Arlington Waste-to- Energy
Facility) Series 1986A DN
3.90%** 04/01/96 $ 500 $ 500,000
Alexandria Redevelopment &
Housing Authority Multi Family
Housing Mortgage Revenue
(Buckingham Village Apartments)
Series 1996 DN
3.70%** 04/07/96 2,000 2,000,000
Alexandria Redevelopment &
Housing Authority Multi-Family
Housing (Crystal City Apts
Project) Series 1990A DN
3.60%** 04/07/96 2,000 2,000,000
Arlington County Revenue (Ballston
Public Parking) Series 1984 DN
3.40%** 04/07/96 1,600 1,600,000
Capital Region Airport Commission
(Richmond International Airport
Project) Series 1995C, DN
3.45%** 04/07/96 2,000 2,000,000
Charles County IDA Solid Waste
(Chambers Development Virginia
Project) Series 1989 DN
3.70%** 04/07/96 1,100 1,100,000
Chesterfield County GO Series
1986 MB (Escrowed in US
Government Securities)
7.10% 07/15/96 250 256,050
Chesterfield County IDA Pollution
Control Revenue (Virginia Electric
& Power Company) MB
3.20% 04/01/96 1,000 1,000,000
3.40% 06/14/96 500 500,000
Commonwealth of Virginia TECP
3.50% 04/08/96 1,100 1,100,000
Culpeper IDA (Baptist Homes)
Series 1992 DN
3.50%** 04/07/96 1,470 1,470,000
Fairfax County IDA (Fairfax Hospital
System) Series 1988A DN
3.60%** 04/01/96 1,100 1,100,000
Fairfax County IDA (Fairfax Hospital
System, Inc.) Series 1988C DN
3.60%** 04/03/96 100 100,000
Falls Church IDA (Kaiser Permanente
Project) Series 1985 MB
4.10% 05/01/96 500 500,000
PAR
MATURITY (000) VALUE
---------- -------- ------------
VIRGINIA (CONTINUED)
Fauquier County IDA (Warrenton
Development Company Project)
Series 1994 DN
3.50%** 04/04/96 $ 300 $ 300,000
Greensville County IDA (Perdue
Farms, Inc. Project) Series 1986
DN
3.55%** 04/01/96 600 600,000
Halifax County IDA PCR (Virginia
Electric & Power Co.) Series
1992 MB
3.40% 05/10/96 2,000 2,000,000
King George County, IDA
(Birchwood Power Partners, L.P.
Project) Series 1995 DN
3.85%** 04/01/96 2,200 2,200,000
Louden County IDA Residential
Care Facilities (Falcons Landing
Project) Series 1994B DN
3.95%** 04/01/96 1,200 1,200,000
Louisa County IDA Pooled
Financing Series 1995 DN
3.50%** 04/07/96 800 800,000
Louisa IDA Pollution Control
Revenue (Virginia Electric and
Power Company Project) Series
1995 MB
3.40%** 04/01/96 1,000 1,000,000
3.30% 04/01/96 100 100,000
Lynchburg IDA Hospital Facilities
(VHA Mid-Atlantic States Capital
Asset Finance Program) Series
1985C DN
3.30%** 04/07/96 600 600,000
Lynchburg IDA Hospital Facilities
(VHA Mid-Atlantic States Capital
Asset Financial Program) Series
1985B DN
3.30%** 04/01/96 100 100,000
Lynchburg IDA Hospital Facilities
(VHA Mid-Atlantic States Capital
Asset Financial Program) Series
1985E DN
3.30%** 04/07/96 1,000 1,000,000
Lynchburg IDA Hospital Facilities
(VHA Mid-Atlantic States Capital |
Asset Financial Project) Series
1985G DN
3.30%** 04/07/96 100 100,000
See accompanying notes to financial statements.
26
<PAGE>
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
VIRGINIA (CONTINUED)
Peninsula Port Authority of Virginia
Coal Terminal (Dominion Terminal
Associates Project) Series 1987D DN
3.75%** 04/01/96 $1,920 $ 1,920,000
Peninsula Port Authority of Virginia
Port Facility (Shell Coal and
Terminal Company) Series
1987 DN
3.75%** 04/01/96 1,100 1,100,000
Peninsula Port Authority of Virginia
Port Facility Revenue Refunding
(CSX Transportation, Inc. Project)
Series 1992 MB
3.20%** 04/01/96 1,000 1,000,000
Prince William County IDA Pollution
Control Revenue (Virginia Electric
and Power Company) Series
1986 MB
3.40% 06/14/96 300 300,000
Richmond IDA (Halifax Paper
Board Co.Project) Series 1990 DN
3.65%** 04/07/96 510 510,000
Roanoke IDA (Carillon Health
System) Series 1995C DN
3.60%** 04/07/96 1,300 1,300,000
South Hill IDA (South Hill Veneers,
Inc. Project) Series 1987 DN
3.60%** 04/07/96 300 300,000
Virginia Housing Development
Authority (AHC Service
Corporation - Woodbury Park
Project) Series 1987A MB
3.70%** 04/07/96 1,070 1,070,000
Virginia Housing Development
Authority Multi Family Housing
Series 1991F MB
5.90% 05/01/96 1,300 1,302,126
Virginia Small Business Financing
Authority (Coastal Development
Group Project) Series 1989 DN
3.65%** 04/07/96 195 195,000
Virginia State Public School
Authority (Equipment Financing
Notes - Issue III) Series 1995 MB
4.00% 04/01/96 1,000 1,000,000
York County IDA Pollution Control
Revenue (Virginia Electric and
Power Company Project) Series
1985 MB
3.40% 06/14/96 200 200,000
------------
35,423,176
------------
PAR
MATURITY (000) VALUE
---------- -------- ------------
PUERTO RICO -- 11.5%
Government Development Bank
Series 1985 DN
2.80%** 04/07/96 $2,800 $ 2,800,000
Puerto Rico Highway and
Transportation Authority (Multiple
Credit Enhancements) Series
1993X DN
2.80%** 04/01/96 400 400,000
Puerto Rico Industrial Medical &
Environmental Pollution Control
Facilities Authority (Ana G.
Mendez Foundation Project)
Series 1985 DN
3.40%** 04/07/96 800 800,000
Puerto Rico Industrial, Medical,
Higher Education and
Environmental Pollution Control
Facilities MB
3.75% 04/01/96 600 599,395
------------
4,599,395
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $40,022,571*) 99.6% 40,022,571
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.4% 164,072
------- -----------
NET ASSETS (Equivalent to $1.00
per share based on 32,184,932
Institutional shares and 8,001,787
Service shares outstanding) 100.00% $40,186,643
======= ===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL AND SERVICE SHARE
($40,186,643 / 40,186,719) $1.00
=====
- ------------------
* Aggregate cost for federal tax purposes.
** Rates shown are the rates as of March 31, 1996, and the maturities shown are
the longer of the next interest readjustment date or the date the principal
amount 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
TAN.............................Tax Anticipation Note
TECP......................Tax-Exempt Commercial Paper
TRAN................Tax and Revenue Anticipation Note
See accompanying notes to financial statements.
27
<PAGE>
COMPASS CAPITAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NORTH
U.S. NEW JERSEY CAROLINA OHIO PENNSYLVANIA VIRGINIA
TREASURY MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET MARKET MARKET MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO 1 PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ----------- ---------- --------- ---------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest ................ $65,181,349 $29,322,742 $6,349,990 $436,981 $1,450,437 $1,380,201 $ 9,115,236 $ 632,685
----------- ----------- ---------- -------- ---------- ---------- ----------- ---------
Expenses:
Investment advisory fee . 4,765,481 2,321,183 761,606 59,408 175,935 160,871 1,107,592 77,391
Administration fee ...... 1,629,055 836,705 289,329 23,764 66,630 60,183 420,045 29,433
Custodian fee ........... 181,244 92,307 40,731 3,778 12,564 11,289 49,210 8,576
Transfer agent fee ...... 399,217 177,356 68,401 6,997 14,606 12,542 94,662 7,671
Service fees ............ 2,248,989 1,320,235 439,886 28,378 7,930 71,733 308,543 6,146
Distribution fees ....... 169,999 11,197 66 11,028 154 3,880 111,781 --
Legal and audit ......... 91,560 40,571 13,907 1,722 5,911 4,829 20,931 3,808
Printing ................ 77,338 29,106 9,592 947 6,018 7,961 16,687 5,316
Registration fees and
expenses .............. 232,567 107,428 48,713 4,311 5,039 6,507 32,553 6,093
Organization ............ -- -- -- 1,312 2,846 2,370 2,282 3,257
Trustees' fees and
officer's salary ...... 15,000 6,903 2,216 189 546 507 3,129
215
Other ................... 49,792 19,902 4,405 614 1,066 1,165 5,981 666
----------- ----------- ---------- -------- ---------- ---------- ----------- ---------
9,860,242 4,962,893 1,678,852 142,448 299,245 343,837 2,173,396 148,572
Less fees voluntarily
waived and expenses
reimbursed .............. (4,168,469) (2,122,211) (756,146) (62,446) (193,175) (165,950) (1,034,699) (119,111)
----------- ----------- ---------- -------- ---------- ---------- ----------- ---------
Total expenses .......... 5,691,773 2,840,682 922,706 80,002 106,070 177,887 1,138,697 29,461
----------- ----------- ---------- -------- ---------- ---------- ----------- ---------
Net investment income ... 59,489,576 26,482,060 5,427,284 356,979 1,344,367 1,202,314 7,976,539 603,224
Net realized gain (loss)
on investments .......... 144,601 (283,857) 42,882 209 3,496 6,095 (1) (30)
----------- ----------- ---------- -------- ---------- ---------- ----------- ---------
Net increase in net assets
resulting from operations $59,634,177 $26,198,203 $5,470,166 $357,188 $1,347,863 $1,196,219 $ 7,976,538 $ 603,194
=========== =========== ========== ======== ========== ========== =========== =========
<FN>
- --------------
1 For the period 2/1/96 through 3/31/96.
</FN>
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
COMPASS CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. TREASURY
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
3/31/96 9/30/95 3/31/96 9/30/95
--------------- --------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease)
in net assets:
Operations
Net investment
income ............. $ 59,489,576 $ 79,182,033 $ 26,482,060 $ 33,316,785
Net gain (loss)
on investment ...... 144,601 (21,648) (283,857) 6,023
--------------- --------------- --------------- ---------------
Net increase in
net assets
resulting from
operations ......... 59,634,177 79,160,385 26,198,203 33,322,808
--------------- --------------- --------------- ---------------
Distributions to
shareholders from
Net investment income
Institutional Shares (19,487,122) (37,154,478) (4,523,006) (5,391,744)
Service Shares ..... (38,368,985) (41,703,939) (21,866,145) (27,836,761)
Investor A Shares .. (1,632,871) (323,561) (104,054) (88,280)
Investor B Shares .. (598) (55) -- --
--------------- --------------- --------------- ---------------
Total distributions
to shareholders .. (59,489,576) (79,182,033) (26,493,205) (33,316,785)
--------------- --------------- --------------- ---------------
Capital share transactions 710,650,649 775,145,746 812,030,054 260,770,269
--------------- --------------- --------------- ---------------
Total increase
(decrease) in
net assets ..... 710,795,250 775,124,098 811,735,052 260,776,292
Net assets:
Beginning of period .. 1,858,385,746 1,083,261,648 672,784,048 412,007,756
--------------- --------------- --------------- ---------------
End of period ........ $ 2,569,180,996 $ 1,858,385,746 $ 1,484,519,100 $ 672,784,048
=============== =============== =============== ===============
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL NEW JERSEY MUNICIPAL
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE FOR THE PERIOD 3/1/95
ENDED YEAR ENDED PERIOD 2/1/96 THROUGH
3/31/96 9/30/95 THROUGH 3/31/96 1/31/96
--------------- --------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease)
in net assets:
Operations
Net investment
income ............. $ 5,427,284 $ 8,384,671 $ 356,979 $ 1,406,663
Net gain (loss)
on investment ...... 42,882 (12,355) 209 (285)
--------------- --------------- --------------- ---------------
Net increase in
net assets
resulting from
operations ......... 5,470,166 8,372,316 357,188 1,406,378
--------------- --------------- --------------- ---------------
Distributions to
shareholders from
Net investment income
Institutional Shares (793,567) (1,414,111) (18,934) (5,649)
Service Shares ..... (4,633,342) (6,969,678) (256,440) (1,388,324)
Investor A Shares .. (375) (882) (81,605)
(22,768)
Investor B Shares .. -- -- -- --
--------------- --------------- --------------- ---------------
Total distributions
to shareholders .. (5,427,284) (8,384,671) (356,979) (1,416,741)
--------------- --------------- --------------- ---------------
Capital share transactions 36,365,283 155,432,888 (3,903,158)
39,215,073
--------------- --------------- --------------- ---------------
Total increase
(decrease) in
net assets ..... 36,408,165 155,420,533 (3,902,949) 39,204,710
Net assets:
Beginning of period .. 319,427,288 164,006,755 82,814,710 43,610,000
--------------- --------------- --------------- ---------------
End of period ........ $ 355,835,453 $ 319,427,288 $ 78,911,761 $ 82,814,710
=============== =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
COMPASS CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
OHIO PENNSYLVANIA MUNICIPAL NORTH CAROLINA MUNICIPAL
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
------------------------------ ------------------------------ ------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS YEAR
ENDED YEAR ENDED ENDED YEAR ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95
------------- ------------- ------------- ------------- ------------- -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
Operations
Net investment income ..... $ 1,202,314 $ 2,248,767 $ 7,976,539 $ 12,002,981 $ 1,344,367 $ 3,337,460
Net gain (loss) on
investments .............. (6,095) -- (1) (1,459) 3,496 115
------------- ------------- ------------- ------------- ------------- -------------
Net increase in net
assets resulting from
operations .............. 1,196,219 2,248,767 7,976,538 12,001,522 1,347,863 3,337,575
------------- ------------- ------------- ------------- ------------- -------------
Distributions to
shareholders from
Net investment income
Institutional Shares ...... (398,708) (614,141) (4,148,297) (7,756,121) (1,260,648) (3,322,447)
Service Shares ............ (781,179) (1,633,831) (3,187,327) (4,239,580) (82,834) (14,791)
Investor A Shares ......... (22,427) (795) (640,915) (7,280) (885) (222)
------------- ------------- ------------- ------------- ------------- -------------
Total distributions
to shareholders ........ (1,202,314) (2,248,767) (7,976,539) (12,002,981) (1,344,367)
(3,337,460)
------------- ------------- ------------- ------------- ------------- -------------
Capital share transactions .... (12,724,099) 18,996,645 169,543,746 163,103,796 13,399,747 8,893,514
------------- ------------- ------------- ------------- ------------- -------------
Total increase (decrease)
in net assets ......... (12,730,194) 18,996,645 169,543,745 163,102,337 13,403,243 8,893,629
Net assets:
Beginning of period ....... 73,611,171 54,614,526 381,903,417 218,801,080 78,566,526 69,672,897
------------- ------------- ------------- ------------- ------------- -------------
End of period ............. $ 60,880,977 $ 73,611,171 $ 551,447,162 $ 381,903,417 $ 91,969,769 $ 78,566,526
============= ============= ============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
COMPASS CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL
MONEY MARKET PORTFOLIO
----------------------------
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
3/31/96 9/30/95
------------ ------------
(UNAUDITED)
<S> <C> <C>
Increase (decrease) in net assets:
Operations
Net Investment income .............................. $ 603,224 $ 700,255
Net gain (loss) on investments ..................... (30) (66)
------------ ------------
Net increase in net assets resulting from operations 603,194 700,189
------------ ------------
Distributions to shareholders from
Institutional Shares ............................... (539,666) (685,237)
Service Shares ..................................... (63,558) (15,018)
Investor A Shares .................................. -- --
------------ ------------
Total distributions to shareholders ................ (603,224) (700,255)
------------ ------------
Capital share transactions ............................. 14,957,057 11,398,564
------------ ------------
Total increase in net assets ....................... 14,957,027 11,398,498
Net assets:
Beginning of period ................................ 25,229,616 13,831,118
------------ ------------
End of period ...................................... $ 40,186,643 $ 25,229,616
============ ============
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
------------------------------------------------
INSTITUTIONAL CLASS
------------------------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS YEAR YEAR 8/2/93 1
ENDED ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93
--------- --------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value at beginning of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- -------- --------
Income from investment operations
Net investment income .................................. 0.0273 0.0564 0.0359 0.0054
Net realized gain (loss) on investments ................ -- -- -- --
--------- --------- -------- --------
Total from investment operations ..................... 0.0273 0.0564 0.0359 0.0054
--------- --------- -------- --------
Less distributions
Distributions from net investment income ............... (0.0273) (0.0564) (0.0359) (0.0054)
Distributions from net realized capital gains .......... -- -- -- --
--------- --------- -------- --------
Total distributions .................................. (0.0273) (0.0564) (0.0359) (0.0054)
--------- --------- -------- --------
Net asset value at end of period ......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ======== ========
Total return ............................................. 2.76% 5.79% 3.64% 0.54%
Ratios/Supplemental data
Net assets at end of period (in thousands) ............. $619,708 $654,157 $502,972 $435,586
Ratios of expenses to average net assets
After advisory/administration fee waivers ............ 0.28%2 0.27% 0.25% 0.27%2
Before advisory/administration fee waivers ........... 0.65%2 0.64% 0.66% 0.38%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers ............ 5.47%2 5.66% 3.64% 3.01%2
Before advisory/administration fee waivers ........... 5.10%2 5.28% 3.23% 2.90%2
<FN>
- ----------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
------------------------------------------------------------------------------------
SERVICE CLASS
------------------------------------------------------------------------------------
FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/96 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
---------- ---------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period ........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- -------- -------- -------- --------
Income from investment
operations
Net investment income .............. 0.0258 0.0534 0.0333 0.0274 0.0391 0.0645
Net realized gain (loss)
on investments .................... -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total from investment
operations ...................... 0.0258 0.0534 0.0333 0.0274 0.0391 0.0645
---------- ---------- -------- -------- -------- --------
Less distributions
Distributions from net
investment income ............... (0.0258) (0.0534) (0.0333) (0.0274) (0.0391) (0.0645)
Distributions from net
realized capital gains .......... -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total distributions ............ (0.0258) (0.0534) (0.0333) (0.0274) (0.0391) (0.0645)
---------- ---------- -------- -------- -------- --------
Net asset value at end of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ======== ======== ======== ========
Total return ......................... 2.61% 5.48% 3.37% 2.77% 4.05% 6.64%
Ratios/Supplemental data
Net assets at end of period
(in thousands) .................... $1,834,303 $1,194,017 $575,948 $415,328 $838,012 $637,076
Ratios of expenses to average
net assets
After advisory/administration
fee waivers ..................... 0.59%2 0.57% 0.51% 0.59% 0.61% 0.62%
Before advisory/administration
fee waivers ..................... 0.95%2 0.94% 0.92% 0.70% 0.66% 0.67%
Ratios of net investment income
to average net assets
After advisory/administration
fee waivers ..................... 5.13%2 5.35% 3.35% 2.73% 3.86% 6.45%
Before advisory/administration
fee waivers ..................... 4.76%2 4.98% 2.95% 2.62% 3.81% 6.40%
<FN>
- --------------
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------
INVESTOR A CLASS INVESTOR B CLASS
--------------------------------------------- ---------------------
FOR THE FOR THE
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS YEAR YEAR 1/13/93 1 SIX MONTHS 9/15/95 1
ENDED ENDED ENDED THROUGH ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93 3/31/96 9/30/95
-------- ------- ------- ------- ------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------- ------- -------
Income from investment operations
Net investment income ............................... 0.0245 0.0511 0.0308 0.0188 0.0220 0.0020
Net realized gain (loss) on investments ............. -- -- -- -- -- --
-------- ------- ------- ------- ------- -------
Total from investment operations .................. 0.0245 0.0511 0.0308 0.0188 0.0220 0.0020
-------- ------- ------- ------- ------- -------
Less distributions
Distributions from net investment income ............ (0.0245) (0.0511) (0.0308) (0.0188) (0.0220) (0.0020)
Distributions from net realized capital gains ....... -- -- -- -- -- --
-------- ------- ------- ------- ------- -------
Total distributions ............................... (0.0245) (0.0511) (0.0308) (0.0188) (0.0220) (0.0020)
-------- ------- ------- ------- ------- -------
Net asset value at end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ======= =======
Total return .......................................... 2.47% 5.23% 3.12% 1.89% 2.22% 0.20%
Ratios/Supplemental data
Net assets at end of period (in thousands) .......... $115,142 $10,185 $4,342 $ 49 $ 28 $ 27
Ratios of expenses to average net assets
After advisory/administration fee waivers ......... 0.86%2 0.81% 0.75% 0.67%2 1.35%2 1.34%2
Before advisory/administration fee waivers ........ 1.22%2 1.19% 1.16% 0.78%2 1.72%2 1.72%2
Ratios of net investment income to averagenet assets
After advisory/administration fee waivers ......... 4.82%2 5.15% 3.39% 2.62%2 4.39%2 4.58%2
Before advisory/administration fee waivers ........ 4.45%2 4.78% 2.98% 2.51%2 4.03%2 4.20%2
<FN>
- --------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------------------
INSTITUTIONAL CLASS
-------------------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS YEAR YEAR 8/2/93 1
ENDED ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93
-------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value at beginning of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations
Net investment income .................................. 0.0175 0.0364 0.0246 0.0040
Net realized gain (loss) ............................... -- -- -- --
-------- -------- -------- --------
Total from investment operations ......................... 0.0175 0.0364 0.0246 0.0040
-------- -------- -------- --------
Less distributions
Distributions from net investment income ............... (0.0175) (0.0364) (0.0246) (0.0040)
Distributions from net realized capital gains .......... -- -- -- --
-------- -------- -------- --------
Total distributions ...................................... (0.0175) (0.0364) (0.0246) (0.0040
-------- -------- -------- --------
Net asset value at end of period ......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total return ............................................. 1.76% 3.70% 2.48% 0.40%
Ratios/Supplemental data
Net assets at end of period (in thousands) ............. $ 40,272 $ 53,778 $ 30,608 $ 39,148
Ratios of expenses to average net assets
After advisory/administration fee waivers ............ 0.29%2 0.27% 0.25% 0.25%2
Before advisory/administration fee waivers ........... 0.73%2 0.71% 0.73% 0.36%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers ............ 3.46%2 3.64% 2.48% 2.45%2
Before advisory/administration fee waivers ........... 3.01%2 3.20% 2.01% 2.34%2
<FN>
- --------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
35
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
----------------------------------------------------------------
SERVICE CLASS
----------------------------------------------------------------
FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/96 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
-------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from investment operations
Net investment income .................................. 0.0160 0.0334 0.0219 0.0205 0.0281 0.0438
Net realized gain (loss) ............................... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from investment operations ......................... 0.0160 0.0334 0.0219 0.0205 0.0281 0.0438
-------- -------- -------- -------- -------- --------
Less distributions
Distributions from net investment income ............... (0.0160) (0.0334) (0.0219) (0.0205) (0.0281) (0.0438)
Distributions from net realized capital gains .......... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions .................................. (0.0160) (0.0334) (0.0219) (0.0205) (0.0281) (0.0438)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return ............................................. 1.61% 3.39% 2.20% 2.10% 2.85% 4.47%
Ratios/Supplemental data
Net assets at end of period (in thousands) ............. $315,545 $265,629 $133,358 $ 93,937 $125,152 $ 89,312
Ratios of expenses to average net assets
After advisory/administration fee waivers ............ 0.59%2 0.57% 0.51% 0.61% 0.63% 0.65%
Before advisory/administration fee waivers ........... 1.03%2 1.01% 0.99% 0.72% 0.68% 0.70%
Ratios of net investment income to average net assets
After advisory/administration fee waivers ............ 3.17%2 3.35% 2.18% 2.02% 2.78% 4.40%
Before advisory/administration fee waivers ........... 2.72%2 2.91% 1.71% 1.91% 2.73% 4.35%
<FN>
- ------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
------------------------------------------------------
INVESTOR A CLASS
------------------------------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS YEAR YEAR 11/02/92 1
ENDED ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93
--------- --------- --------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value at beginning of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- ---------
Income from investment operations
Net investment income ................................ 0.0146 0.0311 0.0193 0.0181
Net realized gain (loss) on investments .............. -- -- -- --
--------- --------- --------- ---------
Total from investment operations ........................ 0.0146 0.0311 0.0193 0.0181
--------- --------- --------- ---------
Less distributions
Distributions from net investment income ............. (0.0146) (0.0311) (0.0193) (0.0181)
Distributions from net realized capital gains ........ -- -- -- --
--------- --------- --------- ---------
Total distributions ................................ (0.0146) (0.0311) (0.0193) (0.0181)
--------- --------- --------- ---------
Net asset value at end of period ........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= =========
Total return ............................................ 1.47% 3.15% 1.95% 1.83%
Ratios/Supplemental data
Net assets at end of period (in thousands) ........... $ 18 $ 20 $ 41 $ 15
Ratios of expenses to average net assets
After advisory/administration fee waivers .......... 0.86%2 0.79% 0.75% 0.72%2
Before advisory/administration fee waivers ......... 1.30%2 1.23% 1.23% 0.83%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers .......... 2.85%2 3.08% 2.05% 2.23%2
Before advisory/administration fee waivers ......... 2.40%2 2.64% 1.58% 2.12%2
<FN>
- ----------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS 5 INVESTOR A CLASS
-------------------- ---------------------------------------------------------- ------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
PERIOD PERIOD PERIOD PERIOD FOR THE FOR THE FOR THE PERIOD PERIOD PERIOD
2/1/96 1/16/96 1 2/1/96 3/1/95 YEAR YEAR YEAR 7/1/91 1 2/1/96 1/16/96 1
THROUGH THROUGH THROUGH THROUGH ENDED ENDED ENDED THROUGH THROUGH THROUGH
3/31/96 1/31/96 3/31/96 1/31/96 2/28/95 2/28/94 2/28/93 2/29/92 3/31/96 1/31/96
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment
income ................ 0.0050 0.00 0.0045 0.03 0.02 0.02 0.02 0.02 0.0042 0.00
Net realized gain
(loss) ................ -- -- -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total from investment
operations ........... 0.0050 0.00 0.0045 0.03 0.02 0.02 0.02 0.02 0.0042 0.00
Less distributions
Distributions from net
investment income ..... (0.0050) 0.00 (0.0045) (0.03) (0.02) (0.02) (0.02) (0.02) (0.0042) 0.00
Distributions from net
realized capital gains. -- -- -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions .. (0.0050) 0.00 (0.0045) (0.03) (0.02) (0.02) (0.02) (0.02) (0.0042) 0.00
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value at end
of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total return 0.50% 3.07%2 0.45% 3.23%2 2.46% 1.79% 2.19% 3.53%2 0.43%2 2.66%2
Ratios/Supplemental data
Net assets at end of
period (in thousands) . $ 2,250 $ 4,195 $58,905 $56,958 $43,610 $39,408 $38,836 $35,005 $17,757 $21,662
Ratios of expenses to
average net assets
After advisory/
administration
fee waivers ......... 0.29%2 0.29%2 0.59%2 0.70%2 0.63% 0.65% 0.73% 0.47%2 0.71%2 0.71%2
Before advisory/
administration
fee waivers ......... 0.76%2 0.78%2 1.06%2 0.74%2 0.70% 0.72% 0.76% 0.62%2 1.18%2 1.20%2
Ratios of net investment
income to average net
assets
After advisory/
administration
fee waivers ......... 3.02%2 3.07%2 2.72%2 3.17%2 2.46% 1.77% 2.17% 3.44%2 2.60%2 2.66%2
Before advisory/
administration
fee waivers ......... 2.55%2 2.58%2 2.25%2 3.13%2 2.39% 1.70% 2.14% 3.29%2 2.12%2 2.17%2
<FN>
- ----------------
1 Commencement of operations.
2 Annualized.
5 Service Class includes all activity of the prior class of shares before January 13, 1996, the date of the merger.
</FN>
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
U.S. TREASURY MONEY MARKET PORTFOLIO
----------------------------------------------------
INSTITUTIONAL CLASS
----------------------------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS YEAR YEAR 8/2/93 1
ENDED ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93
-------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value at beginning of period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations
Net investment income .................................... 0.0268 0.0555 0.0357 0.0049
-------- -------- -------- --------
Net realized gain (loss) ................................. -- -- -- --
-------- -------- -------- --------
Total from investment operations ....................... 0.0268 0.0555 0.0357 0.0049
-------- -------- -------- --------
Less distributions
Distributions from net investment income ................. (0.0268) (0.0555) (0.0357) (0.0049)
Distributions from net realized capital gains ............ -- -- -- --
-------- -------- -------- --------
Total distributions .................................... (0.0268) (0.0555) (0.0357) (0.0049)
-------- -------- -------- --------
Net asset value at end of period ........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total return ............................................... 2.71% 5.69% 3.63% 0.49%
Ratios/Supplemental data
Net assets at end of period (in thousands) ............... $181,244 $120,540 $ 37,519 $ 13,513
Ratios of expenses to average net assets
After advisory/administration fee waivers .............. 0.29%2 0.27% 0.25% 0.25%2
Before advisory/administration fee waivers ............. 0.69%2 0.69% 0.70% 0.38%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers .............. 5.31%2 5.64% 3.69% 3.01%2
Before advisory/administration fee waivers ............. 4.91%2 5.22% 3.24% 2.88%2
<FN>
- ----------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
U.S. TREASURY MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------
SERVICE CLASS
---------------------------------------------------------------------------
FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/96 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
----------- --------- --------- -------- --------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period .... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- --------- --------- -------- --------- ---------
Income from investment operations
Net investment income ................... 0.0253 0.0525 0.0331 0.0269 0.0394 0.0627
Net realized gain (loss) ................ -- -- -- -- -- --
----------- --------- --------- -------- --------- ---------
Total from investment operations ...... 0.0253 0.0525 0.0331 0.0269 0.0394 0.0627
----------- --------- --------- -------- --------- ---------
Less distributions
Distributions from net investment
income ................................ (0.0253) (0.0525) (0.0331) (0.0269) (0.0394) (0.0627)
Distributions from net realized
capital gains ......................... -- -- -- -- -- --
----------- --------- --------- -------- --------- ---------
Total distributions ................... (0.0253) (0.0525) (0.0331) (0.0269) (0.0394) (0.0627)
----------- --------- --------- -------- --------- ---------
Net asset value at end of period .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========= ========= ======== ========= =========
Total return .............................. 2.55% 5.38% 3.36% 2.72% 4.01% 6.46%
Ratios/Supplemental data
Net assets at end of period (in
thousands) ............................. $ 1,295,037 $ 550,959 $ 372,883 $ 185,400 $ 160,269 $ 180,776
Ratios of expenses to average net
assets
After advisory/administration
fee waivers .......................... 0.59%2 0.57% 0.52% 0.60% 0.62% 0.65%
Before advisory/administration
fee waivers .......................... 0.99%2 0.98% 0.97% 0.73% 0.67% 0.70%
Ratios of net investment income
to average net assets
After advisory/administration
fee waivers .......................... 4.98%2 5.27% 3.42% 2.68% 3.91% 6.27%
Before advisory/administration
fee waivers .......................... 4.58%2 4.85% 2.97% 2.55% 3.86% 6.22%
<FN>
- ----------
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
U.S. TREASURY MONEY MARKET PORTFOLIO
-----------------------------------------------------------
INVESTOR A CLASS
-----------------------------------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS YEAR YEAR 1/14/93 1
ENDED ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93
---------- ---------- --------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value at beginning of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- --------- ---------
Income from investment operations
Net investment income ................................. 0.0239 0.0501 0.0309 0.0183
Net realized gain (loss) on investments ............... -- -- -- --
---------- ---------- --------- ---------
Total from investment operations .................... 0.0239 0.0501 0.0309 0.0183
---------- ---------- --------- ---------
Less distributions
Distributions from net investment income .............. (0.0239) (0.0501) (0.0309) (0.0183)
Distributions from net realized capital gains ......... -- -- -- --
---------- ---------- --------- ---------
Total distributions ................................. (0.0239) (0.0501) (0.0309) (0.0183)
---------- ---------- --------- ---------
Net asset value at end of period ........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========= =========
Total return ............................................ 2.41% 5.13% 3.11% 1.85%
Ratios/Supplemental data
Net assets at end of period (in thousands) ............ $ 8,238 $ 1,285 $ 1,656 $ 50
Ratios of expenses to average net assets
After advisory/administration fee waivers ........... 0.86%2 0.80% 0.75% 0.65%2
Before advisory/administration fee waivers .......... 1.26%2 1.21% 1.20% 0.78%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers ........... 4.66%2 5.03% 3.60% 2.57%2
Before advisory/administration fee waivers .......... 4.25%2 4.62% 3.14% 2.44%2
<FN>
- ------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
----------------------------------------------- -----------------------------------------------
FOR THE FOR THE
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS YEAR YEAR 6/10/93 1 SIX MONTHS YEAR YEAR 6/1/93 1
ENDED ENDED ENDED THROUGH ENDED ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93 3/31/96 9/30/95 9/30/94 9/30/93
--------- --------- --------- --------- --------- --------- --------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- --------- --------- ---------
Income from investment
operations
Net investment income .... 0.0178 0.0363 0.0252 0.0073 0.0163 0.0333 0.0225 0.0074
Net realized gain (loss)
on investments .......... -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total from investment
operations ........... 0.0178 0.0363 0.0252 0.0073 0.0163 0.0333 0.0225 0.0074
--------- --------- --------- --------- --------- --------- --------- ---------
Less distributions
Distributions from net
investment income ....... (0.0178) (0.0363) (0.0252) (0.0073) (0.0163) (0.0333) (0.0225) (0.0074)
Distributions from net
realized capital gains .. -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total distributions .... (0.0178) (0.0363) (0.0252) (0.0073) (0.0163) (0.0333) (0.0225) (0.0074)
--------- --------- --------- --------- --------- --------- --------- ---------
Net asset value at end
of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= ========= ========= =========
Total return 1.80% 3.69% 2.55% 0.73% 1.64% 3.38% 2.27% 0.75%
Ratios/Supplemental data
Net assets at end of
period (in thousands) ... $ 15,700 $ 23,679 $ 10,521 $ 12,026 $ 42,675 $ 49,857 $ 44,066 $ 15,239
Ratios of expenses to
average net assets
After advisory/
administration
fee waivers ........... 0.28%2 0.27% 0.13% 0.10%2 0.59%2 0.57% 0.40% 0.23%2
Before advisory/
administration
fee waivers ........... 0.75%2 0.73% 0.77% 0.83%2 1.05%2 1.03% 1.04% 0.96%2
Ratios of net investment
income to average net
assets
After advisory/
administration
fee waivers ........... 3.59%2 3.66% 2.56% 2.45%2 3.27%2 3.35% 2.29% 2.23%2
Before advisory/
administration
fee waivers ........... 3.13%2 3.20% 1.93% 1.72%2 2.81%2 2.89% 1.65% 1.50%2
<FN>
- --------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------
INVESTOR A CLASS
-------------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS YEAR 10/5/93 1
ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94
-------- ------- -------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value at beginning of period ..................... $ 1.00 $ 1.00 $ 1.00
-------- ------- -------
Income from investment operations
Net investment income .................................. 0.0149 0.0310 0.0199
Net realized gain (loss) on investments ................ -- -- --
-------- ------- -------
Total from investment operations ..................... 0.0149 0.0310 0.0199
-------- ------- -------
Less distributions
Distributions from net investment income ................. (0.0149) (0.0310) (0.0199)
Distributions from net realized capital gains ............ -- -- --
-------- ------- -------
Total distributions .................................... (0.0149) (0.0310) (0.0199)
-------- ------- -------
Net asset value at end of period ........................... $ 1.00 $ 1.00 $ 1.00
======== ======= =======
Total return ............................................... 1.51% 3.15% 2.01%
Ratios/Supplemental data
Net assets at end of period (in thousands) ............... $ 2,506 $ 75 $ 28
Ratios of expenses to average net assets
After advisory/administration fee waivers .............. 0.80%2 0.80% 0.62%2
Before advisory/administration fee waivers ............. 1.27%2 1.26% 1.26%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers .............. 2.90%2 3.02% 1.94%2
Before advisory/administration fee waivers ............. 2.43%2 2.56% 1.30%2
<FN>
- --------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
------------------------------------------------ ----------------------------------------------
FOR THE FOR THE
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS YEAR YEAR 6/1/93 1 SIX MONTHS YEAR YEAR 6/11/93 1
ENDED ENDED ENDED THROUGH ENDED ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93 3/31/96 9/30/95 9/30/94 9/30/93
--------- -------- -------- --------- --------- -------- -------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------- --------- -------- -------- ---------
Income from investment
operations
Net investment income ...... 0.0171 0.0355 0.0247 0.0078 0.0157 0.0325 0.0221 0.0074
Net realized gain (loss)
on investments ............ -- -- -- -- -- -- -- --
--------- -------- -------- --------- --------- -------- -------- ---------
Total from investment
operations .............. 0.0171 0.0355 0.0247 0.0078 0.0157 0.0325 0.0221 0.0074
--------- -------- -------- --------- --------- -------- -------- ---------
Less distributions
Distributions from net
investment income ......... (0.0171) (0.0355) (0.0247) (0.0078) (0.0157) (0.0325) (0.0221) (0.0074)
Distributions from net
realized capital gains .... -- -- -- -- -- -- -- --
--------- -------- -------- --------- --------- -------- -------- ---------
Total distributions ...... (0.0171) (0.0355) (0.0247) (0.0078) (0.0157) (0.0325) (0.0221) (0.0074)
--------- -------- -------- --------- --------- -------- -------- ---------
Net asset value at end
of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========= ========= ======== ======== =========
Total return ................. 1.74% 3.61% 2.49% 0.78% 1.54% 3.33% 2.24% 0.74%
Ratios/Supplemental data
Net assets at end of
period (in thousands) ..... $ 240,447 $233,413 $158,102 $ 2,242 $ 250,813 $147,739 $ 60,560 $ 8,919
Ratios of expenses to
average net assets
After advisory/
administration
fee waivers ............. 0.29%2 0.26% 0.16% 0.09%2 0.59%2 0.57% 0.42% 0.32%2
Before advisory/
administration
fee waivers ............. 0.71%2 0.68% 0.73% 0.97%2 1.01%2 0.99% 0.99% 1.20%2
Ratios of net investment
income to average
net assets
After advisory/
administration
fee waivers ............. 3.42%2 3.54% 2.64% 2.15%2 3.11%2 3.29% 2.31% 2.42%2
Before advisory/
administration
fee waivers ............. 3.00%2 3.12% 2.07% 1.27%2 2.69%2 2.87% 1.75% 1.54%2
<FN>
- ----------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------------------
INVESTOR A CLASS
---------------------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS YEAR 12/28/93 1
ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94
-------- ------- -------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value at beginning of period ............. $ 1.00 $ 1.00 $ 1.00
-------- ------- -------
Income from investment operations
Net investment income ............................ 0.0143 0.0302 0.0153
Net realized gain (loss) on investments .......... -- -- --
-------- ------- -------
Total from investment operations ............... 0.0143 0.0302 0.0153
-------- ------- -------
Less distributions
Distributions from net investment income ......... (0.0143) (0.0302) (0.0153)
Distributions from net realized capital gains .... -- -- --
-------- ------- -------
Total distributions ............................ (0.0143) (0.0302) (0.0153)
-------- ------- -------
Net asset value at end of period ................... $ 1.00 $ 1.00 $ 1.00
======== ======= =======
Total return ....................................... 1.49% 3.06% 1.58%
Ratios/Supplemental data
Net assets at end of period (in thousands) ....... $ 60,187 $ 750 $ 139
Ratios of expenses to average net assets
After advisory/administration fee waivers ...... 0.86%2 0.82% 0.65%2
Before advisory/administration fee waivers ..... 1.28%2 1.24% 1.22%2
Ratios of net investment income to average
net assets
After advisory/administration fee waivers ...... 2.87%2 3.03% 2.11%2
Before advisory/administration fee waivers ..... 2.45%2 2.61% 1.54%2
<FN>
- --------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
----------------------------------------------------
INSTITUTIONAL CLASS
----------------------------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS YEAR YEAR 5/4/93 1
ENDED ENDED ENDED THROUGH
3/31/96 9/30/95 9/30/94 9/30/93
-------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value at beginning of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations
Net investment income ................................ 0.0174 0.0359 0.0249 0.0097
Net realized gain (loss) on investments .............. -- -- -- --
-------- -------- -------- --------
Total from investment operations ................... 0.0174 0.0359 0.0249 0.0097
-------- -------- -------- --------
Less distributions
Distributions from net investment income ............. (0.0174) (0.0359) (0.0249) (0.0097)
Distributions from net realized capital gains ........ -- -- -- --
-------- -------- -------- --------
Total distributions ................................ (0.0174) (0.0359) (0.0249) (0.0097)
-------- -------- -------- --------
Net asset value at end of period ....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total return ........................................... 1.76% 3.65% 2.52% 0.97%
Ratios/Supplemental data
Net assets at end of period (in thousands) ........... $ 85,385 $ 76,673 $ 69,673 $ 34,135
Ratios of expenses to average net assets
After advisory/administration fee waivers .......... 0.25%2 0.21% 0.10% 0.10%2
Before advisory/administration fee waivers ......... 0.74%2 0.74% 0.76% 0.81%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers .......... 3.46%2 3.61% 2.53% 2.35%2
Before advisory/administration fee waivers ......... 2.97%2 3.08% 1.87% 1.64%2
<FN>
- ----------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
46
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
------------------------------------------------------------------
SERVICE CLASS INVESTOR A CLASS
----------------------------------- ----------------------
FOR THE FOR THE FOR THE
FOR THE PERIOD PERIOD FOR THE PERIOD
SIX MONTHS 11/01/94 4 4/29/94 1 SIX MONTHS 2/14/95 1
ENDED THROUGH THROUGH ENDED THROUGH
3/31/96 9/30/95 9/30/94 3/31/96 9/30/95
-------- -------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations
Net investment income .................................. 0.0159 0.0305 0.0099 0.0146 0.0194
Net realized gain (loss) on investments ................ -- -- -- -- --
-------- -------- -------- -------- --------
Total from investment operations ..................... 0.0159 0.0305 0.0099 0.0146 0.0194
-------- -------- -------- -------- --------
Less distributions
Distributions from net investment income ............... (0.0159) (0.0305) (0.0099) (0.0146) (0.0194)
Distributions from net realized capital gains .......... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions .................................. (0.0159) (0.0305) (0.0099) (0.0146) (0.0194)
-------- -------- -------- -------- --------
Net asset value at end of period ......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return ............................................. 1.60% 3.11% 0.99% 1.46% 1.95%
Ratios/Supplemental data
Net assets at end of period (in thousands) ............. $ 6,512 $ 1,841 $ --3 $ 73 $ 53
Ratios of expenses to average net assets
After advisory/administration fee waivers ............ 0.55%2 0.55%2 0.36%2 0.82%2 0.83%2
Before advisory/administration fee waivers ........... 1.05%2 1.08%2 1.02%2 1.32%2 1.36%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers ............ 3.14%2 3.34%2 2.54%2 2.88%2 3.05%2
Before advisory/administration fee waivers ........... 2.65%2 2.81%2 1.87%2 2.38%2 2.52%2
<FN>
- --------------
1 Commencement of operations.
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.
47
<PAGE>
COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
--------------------------------- -----------------------
FOR THE FOR THE
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS YEAR 7/25/94 1 SIX MONTHS 10/11/94 1
ENDED ENDED THROUGH ENDED THROUGH
3/31/96 9/30/95 9/30/94 3/31/96 9/30/95
-------- -------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations
Net investment income ................................. 0.0178 0.0368 0.0053 0.0163 0.0330
Net realized gain (loss) on investments ............... -- -- -- -- --
-------- -------- -------- -------- --------
Total from investment operations .................... 0.0178 0.0368 0.0053 0.0163 0.0330
-------- -------- -------- -------- --------
Less distributions
Distributions from net investment income .............. (0.0178) (0.0368) (0.0053) (0.0163) (0.0330)
Distributions from net realized capital gains ......... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions ................................. (0.0178) (0.0368) (0.0053) (0.0163) (0.0330)
-------- -------- -------- -------- --------
Net asset value at end of period ........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return ............................................ 1.79% 3.74% 0.53% 1.64% 3.35%
Ratios/Supplemental data
Net assets at end of period (in thousands) ............ $32,185 $ 24,409 $ 13,831 $ 8,002 $ 821
Ratios of expenses to average net assets
After advisory/administration fee waivers ........... 0.13%2 0.10% 0.10%2 0.44%2 0.40%2
Before advisory/administration fee waivers .......... 0.83%2 0.95% 1.02%2 1.14%2 1.25%2
Ratios of net investment income to average net assets
After advisory/administration fee waivers ........... 3.56%2 3.71% 2.89%2 3.11%2 3.50%2
Before advisory/administration fee waivers .......... 2.87%2 2.86% 1.97%2 2.41%2 2.65%2
<FN>
- ------------------
1 Commencement of operations.
2 Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
48
<PAGE>
COMPASS CAPITAL FUNDSSM
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996 (UNAUDITED)
Compass Capital Funds (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 consists of twenty-eight
separate Portfolios: Money Market Portfolio, Municipal Money Market Portfolio,
U.S. Treasury Money Market Portfolio, Ohio Municipal Money Market Portfolio,
Pennsylvania Municipal Money Market Portfolio, North Carolina Municipal Money
Market Portfolio, Virginia Municipal Money Market Portfolio, New Jersey
Municipal Money Market Portfolio, Value Equity Portfolio, Growth Equity
Portfolio, Small Cap Growth Equity Portfolio, Select Equity Portfolio, Index
Equity Portfolio, Small Cap Value Equity Portfolio, International Equity
Portfolio, International Emerging Markets Portfolio, Balanced Portfolio, Managed
Income Portfolio, Tax-Free Income Portfolio, Core Bond Portfolio, Intermediate
Government Bond Portfolio, Ohio Tax-Free Income Portfolio, Pennsylvania Tax-Free
Income Portfolio, New Jersey Tax-Free Income Portfolio, Short Government Bond
Portfolio, Intermediate Bond Portfolio, International Bond Portfolio and
Government Income Portfolio. This report relates solely to 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 (the "Portfolios").
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 (Februrary 13, 1996 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 detail of the business combination as it relates to the Portfolios are
described in Note (F) to this report.
Each Portfolio has five classes of shares, one class being referred to as
the Service shares, one class being referred to as the Institutional shares, one
class being referred to as the Investor A shares, one class being referred to as
the Investor B shares, and one class being referred to as the Investor C shares.
No Investor A shares of the Virginia Municipal Money Market Portfolio, no
Investor B shares of the Municipal Money Market, New Jersey Municipal Money
Market, U.S.Treasury Money Market, Ohio Municipal Money Market, Pennsylvania
Municipal Money Market, North Carolina Municipal Money Market and Virginia
Municipal Money Market Portfolios, and no Investor C shares of any Portfolio had
been issued through March 31, 1996. Investor A, Investor B, Investor C,
Institutional and Service shares in a Portfolio represent equal pro rata
interests in such Portfolio, except that they bear different expenses which
reflect the difference in the distribution arrangements applicable to them and
the range of services provided to them. Pursuant to the Fund's Amended and
Restated Distribution and Service Plan (the "Plan"), Investor A shares may bear
the expense of distribution fees at an annual rate not to exceed .10% of the
average daily net asset value of each Portfolio's outstanding Investor A shares.
Under the Plan, Investor A shares may also bear the expense of service fees and
shareholder processing fees at annual rates not to exceed .25% and .15%,
respectively, of the average daily net asset value of each Portfolio's
outstanding Investor A shares. Pursuant to the Plan, Investor B and Investor C
Investor shares may bear the expense of distribution fees at an annual rate not
to exceed .75% of the average daily net asset value of each Portfolio's
outstanding Investor B and Investor C shares, respectively. Under the Plan,
Investor B and Investor C shares may also bear the expense of service fees and
shareholder processing fees at annual rates not to exceed .25% and .15%,
respectively, of each Portfolio's outstanding Investor B and Investor C shares,
respectively. Pursuant to the Plan, Service shares may bear the expense of
service fees and share-
49
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
holder processing fees at annual rates not to exceed .15% and .15%,
respectively, of the average daily net asset value of each Portfolio's
outstanding Service shares. Institutional shares do not bear the expense of
distribution fees, service fees or shareholder processing fees under the Plan.
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 assets 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.
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 short-term 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 income tax purposes. Interest income is recorded on the accrual basis.
Certain expenses, principally fees relating to the Plan and the Transfer Agent
fee are class specific expenses. 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
50
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
all the Portfolios except the New Jersey Municipal Money Market Portfolio. PNC
Institutional Management Corporation ("PIMC"), a wholly-owned subsidiary of
PAMG, serves as investment adviser to the New Jersey Municipal Money Market
Portfolio and as sub-adviser to the other Portfolios. PNC Bank serves as
subadviser for the New Jersey Municipal Money Market Portfolio. PNC Bank, PAMG
and PIMC are indirect wholly-owned subsidiary of PNC Bank Corp.
For their advisory services, PAMG and PIMC are 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 and PIMC may, at their discretion, waive all or any portion of their
respective advisory fees for any Portfolio. For the period ended March 31, 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 ........................ $4,765,481 $4,008,296 $ 757,185
U.S. Treasury Money Market Portfolio .......... 2,321,183 1,993,109 328,074
Municipal Money Market Portfolio .............. 761,606 660,059 101,547
New Jersey Municipal Money Market Portfolio ... 59,408 51,487 7,921
North Carolina Municipal Money Market Portfolio 175,935 152,477 23,458
Ohio Municipal Money Market Portfolio ......... 160,871 139,421 21,450
Pennsylvania Municipal Money Market Portfolio . 1,107,592 959,913 147,679
Virginia Municipal Money Market Portfolio ..... 77,391 77,391 --
</TABLE>
PAMG and PIMC pay PIMC and PNC Bank, respectively, for their 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
March 31, 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 ........................ $1,629,055 $ 160,173 $1,468,882
U.S. Treasury Money Market Portfolio .......... 836,705 129,102 707,603
Municipal Money Market Portfolio .............. 289,329 96,087 193,242
New Jersey Municipal Money Market Portfolio ... 23,764 10,959 12,805
North Carolina Municipal Money Market Portfolio 66,630 40,698 25,932
Ohio Municipal Money Market Portfolio ......... 60,183 26,529 33,654
Pennsylvania Municipal Money Market Portfolio . 420,045 74,786 345,259
Virginia Municipal Money Market Portfolio ..... 29,433 29,433 --
</TABLE>
51
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
In addition, PNC Bank serves as custodian for each of the Fund's
Portfolios. PFPC serves as transfer and dividend disbursing agent.
PAMG, PIMC, PFPC, CCG and CDI have also voluntarily agreed to reimburse
expenses in the amount of $12,287 with respect to the Virginia Municipal Money
Market Portfolio for the period ended March 31, 1996.
PAMG, PIMC, PFPC, CCG and CDI have also agreed 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 period ended March 31,
1996.
(C) CAPITAL SHARES
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:
<TABLE>
<CAPTION>
U.S. TREASURY
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
3/31/96 9/30/95 3/31/96 9/30/95
--------------- --------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. $ 926,841,239 $ 1,188,546,232 $ 914,419,063 $ 919,144,341
Service Class ........................ 2,959,788,925 4,367,213,560 1,423,627,053 2,569,753,154
Investor A Class ..................... 158,890,602 23,968,550 15,133,470 4,597,795
Investor B Class ..................... -- 27,272 -- --
Shares issued in merger:
Institutional Class .................. -- -- -- --
Service Class ........................ 547,306,029 -- 607,933,669 --
Investor A Class ..................... -- -- -- --
Investor B Class ..................... -- -- -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 1,672 6,090 40,383 --
Service Class ........................ 4,277,256 6,071,308 2,135,661 4,210,613
Investor A Class ..................... 1,226,782 295,866 76,692 82,648
Investor B Class ..................... 557 -- -- --
Shares redeemed:
Institutional Class .................. (961,325,737) (1,037,357,343) (853,688,455) (836,123,978)
Service Class ........................ (2,871,192,562) (3,755,203,797) (1,289,390,935) (2,395,843,440)
Investor A Class ..................... (55,164,114) (18,421,612) (8,256,547) (5,050,864)
Investor B Class ..................... -- (380) -- --
--------------- --------------- --------------- ---------------
Net increase .............................. $ 710,650,649 $ 775,145,746 $ 812,030,054 $ 260,770,269
=============== =============== =============== ===============
</TABLE>
52
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MUNICIPAL OHIO MUNICIPAL
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
------------------------------ ------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
3/31/96 9/30/95 3/31/96 9/30/95
------------- ------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. $ 103,820,433 $ 148,945,410 $ 94,612,969 $ 122,539,501
Service Class ........................ 475,232,317 944,793,126 43,444,997 111,982,459
Investor A Class ..................... 128,878 4,303 9,757,312 159,749
Shares issued in merger:
Institutional Class .................. -- -- -- --
Service Class ........................ 37,389,008 -- -- --
Investor A Class ..................... -- -- -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 2,344 -- 41,190 3,239
Service Class ........................ 898,838 961,327 303,012 496,048
Investor A Class ..................... 373 915 20,432 650
Shares redeemed:
Institutional Class .................. (117,334,131) (125,774,118) (102,632,526) (109,384,069)
Service Class ........................ (463,641,812) (813,471,594) (50,925,669) (106,687,592)
Investor A Class ..................... (130,965) (26,481) (7,345,816) (113,340)
------------- ------------- ------------- -------------
Net increase (decrease) ................... $ 36,365,283 $ 155,432,888 $ (12,724,099) $ 18,996,645
============= ============= ============= =============
</TABLE>
53
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PENNSYLVANIA MUNICIPAL NORTH CAROLINA MUNICIPAL
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
------------------------------- ------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
3/31/96 9/30/95 3/31/96 9/30/95
------------- ------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class .................. $ 376,373,902 $ 576,760,145 $ 143,393,204 $ 391,610,480
Service Class ........................ 240,894,721 301,727,871 14,620,591 5,766,832
Investor A Class ..................... 229,245,893 933,231 20,500 52,600
Shares issued in merger:
Institutional Class .................. -- -- -- --
Service Class ........................ 51,341,917 -- -- --
Investor A Class ..................... -- -- -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 34,048 44,093 478 13,036
Service Class ........................ 562,774 597,907 62,711 7,099
Investor A Class ..................... 595,925 6,129 943 99
Shares redeemed:
Institutional Class .................. (369,374,825) (501,492,214) (134,685,777) (384,623,190)
Service Class ........................ (189,725,771) (215,145,532) (10,011,903) (3,933,442)
Investor A Class ..................... (170,404,838) (327,834) (1,000) --
------------- ------------- ------------- -------------
Net increase .............................. $ 169,543,746 $ 163,103,796 $ 13,399,747 $ 8,893,514
============= ============= ============= =============
</TABLE>
54
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL
MONEY MARKET PORTFOLIO
-------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS 07/25/94 1
ENDED THROUGH
3/31/96 9/30/95
------------ ------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
Institutional Class .................. $ 43,269,693 $ 46,235,242
Service Class ........................ 9,768,127 1,960,784
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. -- --
Service Class ........................ 31,083 --
Investor A Class ..................... -- --
Shares redeemed:
Institutional Class .................. (35,493,706) (35,657,395)
Service Class ........................ (2,618,140) (1,140,067)
Investor A Class ..................... -- --
------------ ------------
Net increase ......................... $ 14,957,057 $ 11,398,564
============ ============
</TABLE>
55
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NEW JERSEY MUNICIPAL
MONEY MARKET PORTFOLIO
----------------------------
FOR THE FOR THE
PERIOD PERIOD
2/1/96 3/1/95
THROUGH THROUGH
3/31/96 1/31/96
------------ ------------
(UNAUDITED)
<S> <C> <C>
Prior Class
Exchanged in merger ...................... $ -- $(56,147,148)
Shares sold .............................. -- 68,505,533
Shares issued in reinvestment of dividends -- 124,356
Shares redeemed .......................... -- (56,100,370)
------------ ------------
-- (43,617,629)
Institutional Class
Shares sold .............................. -- --
Shares issued in merger .................. -- 4,195,000
Shares issued in reinvestment of dividends -- --
Shares redeemed .......................... (1,945,000) --
------------ ------------
(1,945,000) 4,195,000
Service Class
Exchanged in merger ...................... -- 56,154,777
Shares sold .............................. 12,977,270 2,238,112
Shares issued in merger .................. -- 559,547
Shares issued in reinvestment of dividends 19,116 --
Shares redeemed .......................... (11,048,935) (1,976,807)
------------ ------------
1,947,451 56,975,629
Investor A Class
Shares sold .............................. 3,985,735 12,203,184
Shares issued in merger .................. -- 12,053,281
Shares issued in reinvestment of dividends 83,725 45,768
Shares redeemed .......................... (7,975,069) (2,640,160)
------------ ------------
(3,905,609) 21,662,073
------------ ------------
Net increase (decrease) ....................... $ (3,903,158) $ 39,215,073
============ ============
</TABLE>
56
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
(D) AT MARCH 31, 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 .................... $ 2,569,141,451 $ 1,484,802,957 $ 356,153,053 $ 78,918,974
Accumulated net realized gain (loss)
on investment transactions ...... 39,545 (283,857) (317,600) (7,213)
--------------- --------------- --------------- ---------------
$ 2,569,180,996 $ 1,484,519,100 $ 355,835,453 $ 78,911,761
=============== =============== =============== ===============
</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 .................... $ 91,966,270 $ 60,889,357 $ 551,454,184 $ 40,186,719
Accumulated net realized gain (loss)
on investment transactions ...... 3,499 (8,380) (7,022) (76)
------------- ------------- ------------- -------------
$ 91,969,769 $ 60,880,977 $ 551,447,162 $ 40,186,643
============= ============= ============= =============
</TABLE>
(E) CAPITAL LOSS CARRYOVER
At September 30, 1995, capital loss carryovers were available to offset
possible future realized capital gains as follows: $22,284 in the Money Market
Portfolio which expire in 2003, $35,315 in the Municipal Money Market Portfolio
which expire in 2003, $2,285 in the Ohio Municipal Money Market Portfolio which
expire in 2002, $1,329 in the Pennsylvania Municipal Money Market Portfolio
which expire in 2003, and $46 in the Virginia Municipal Money Market Portfolio
which expire in 2003.
(F) MERGER
The following table summarizes certain relevant information of the Fund
prior to and immediately after the business combination on January 13, 1996.
Unless indicated otherwise, the Fund Portfolio is the accounting survivor. The
new combined funds maintain all the operating history of the accounting
survivor.
<TABLE>
<CAPTION>
THE COMPASS CAPITAL GROUP OF FUNDS THE COMPASS CAPITAL FUNDS
- ------------------------------------------------------- ------------------------------------------------------------------------
COMBINED
SHARES NET ASSETS
NET ASSET NEW ISSUED IN AFTER NAV
SHARES AT VALUE AT PORTFOLIO BUSINESS BUSINESS PER
FUND NAME 1/13/96 1/13/96 NAME COMBINATION COMBINATION SHARE
- ----------------------- -------- ------------ ----------------------------- ------------ -------------- ------
<S> <C> <C> <C> <C> <C> <C>
Cash Reserve 547,461,079 $547,306,029 Money Market 547,461,079 $2,573,597,347 $1.00
U.S. Treasury 607,999,373 607,933,712 U.S. Treasury Money Market 607,999,373 1,403,912,997 $1.00
Municipal Money 37,420,876 37,389,008 Municipal Money Market 37,420,876 383,861,249 $1.00
New Jersey Municipal Money 56,147,148 56,154,777 New Jersey Municipal Money Market1 56,147,148 72,306,961 $1.00
Pennsylvania Municipal Money 51,350,576 51,341,917 Pennsylvania Municipal Money Market 51,350,576 533,075,086 $1.00
<FN>
- ------------
1 The Compass Capital Group of Funds' portfolio is the accounting survivor in this business combination.
</FN>
</TABLE>
57
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
(G) 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:
(1) The following individuals were elected to serve on the Board of
Trustees by the shareholders of all portfolios of the Fund (except the New
Jersey Municipal Money Market Portfolio) voting together in the aggregate:
NUMBER OF NUMBER OF
NAME OF TRUSTEE VOTES FOR VOTES WITHHELD
- ------------------------ ----------------- --------------
William O. Albertini 2,645,247,684.790 81,386.435
Raymond J. Clark 2,645,250,522.952 78,548.273
Robert M. Hernandez 2,645,244,520.505 84,550.720
Anthony M. Santomero 2,645,249,457.988 79,613.237
David R. Wilmerding, Jr. 2,645,254,541.991 74,529.234
(2) The approval of the selection of Coopers & Lybrand, L.L.P. as the
Fund's independent accountant for the fiscal year ending September 30, 1996 was
ratified by the shareholders of all portfolios of the Fund (except the New
Jersey Municipal Money Market Portfolio) voting together in the aggregate as
follows:
VOTES FOR VOTES AGAINST ABSTAINED
- ----------------- ------------- -----------
2,645,041,144.560 180,978.235 106,948.430
(3) The new investment advisory agreement with PAMG and the new
sub-advisory agreement with PIMC were approved by the shareholders of the
Portfolios (voting separately on a Portfolio-by-Portfolio basis) as follows:
PORTFOLIO VOTES FOR VOTES AGAINST ABSTAINED
---------- ----------------- ------------- -------------
Money Market 1,296,835,963.36 71,060.11 66,386.21
Municipal Money
Market 224,440,981.89 0.00 0.00
U.S. Treasury
Money Market 528,865,564.68 0.00 10,341.43
Ohio Municipal
Money Market 35,449,893.76 0.00 0.00
Pennsylvania Municipal
Money Market 230,043,130.82 0.00 1,117,644.97
North Carolina Municipal
Money Market 40,255,206.92 0.00 0.00
Virginia Municipal
Money Market 23,816,657.33 0.00 0.00
The Special Meeting has been adjourned to a later date in order to solicit
additional votes with respect to the proposed advisory and sub-advisory
agreements for the New Jersey Municipal Money Market Portfolio.
58
<PAGE>
COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996 (UNAUDITED)
(4) A new distribution plan was approved by the Service and Institutional
shares of each Portfolio (voting separately on a class-by-class basis) as
follows:
PORTFOLIO VOTES FOR VOTES AGAINST ABSTAINED
- ------------------------------------- --------------- ------------- ---------
Money Market
Service Shares 796,796,426.990 0.00 0.00
Institutional Shares 498,301,258.810 0.00 0.00
Municipal Money Market
Service Shares 196,901,486.990 0.00 0.00
Institutional Shares 27,536,238.740 0.00 0.00
U.S. Treasury Money Market
Service Shares 442,517,240.470 0.00 0.00
Institutional Shares 85,607,314.270 0.00 0.00
Ohio Municipal Money Market
Service Shares 25,502,145.060 0.00 0.00
Institutional Shares 14,529,385.550 0.00 0.00
Pennsylvania Municipal Money Market
Service Shares 86,143,588.510 0.00 0.00
Institutional Shares 144,926,089.060 0.00 0.00
North Carolina Municipal Money Market
Service Shares 3,603,525.960 0.00 0.00
Institutional Shares 39,631,193.990 0.00 0.00
Virginia Municipal Money Market
Service Shares 2,249,426.380 0.00 0.00
Institutional Shares 23,210,259.320 0.00 0.00
New Jersey Municipal Money Market
Service Shares 15,230.100 0.00 0.00
Institutional Shares 5,000,000.00 0.00 0.00
59
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
================================================================================
Investment Advisers
PNC Asset Management Group, Inc.
Philadelphia, Pennsylvania 19101
PNC Institutional Management Corporation
Wilmington, Delaware 19809
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
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.
COMI-T-01E
