MONEY MARKET PORTFOLIOS
SEMI-ANNUAL
REPORT
TO SHAREHOLDERS
MARCH 31, 1997
[GRAPHIC OMITTED]
COMPASS
CAPITAL FUNDS
PURE INVESTMENT STYLE SM
* NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE *
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
MONEY MARKET PORTFOLIOS
* 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
* VIRGINIA MUNICIPAL MONEY
MARKET
TABLE OF
CONTENTS
PRESIDENT'S LETTER................................................. 1-2
PORTFOLIO SUMMARIES
MONEY MARKET................................................. 3-4
U.S. TREASURY MONEY MARKET................................... 5
MUNICIPAL MONEY MARKET....................................... 6-9
NEW JERSEY MUNICIPAL MONEY MARKET............................ 10-11
NORTH CAROLINA MUNICIPAL MONEY MARKET........................ 12-14
OHIO MUNICIPAL MONEY MARKET.................................. 15-16
PENNSYLVANIA MUNICIPAL MONEY MARKET.......................... 17-20
VIRGINIA MUNICIPAL MONEY MARKET.............................. 21-22
PORTFOLIO FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS..................................... 24-25
STATEMENTS OF CHANGES IN NET ASSETS.......................... 26-27
FINANCIAL HIGHLIGHTS......................................... 28-33
NOTES TO FINANCIAL STATEMENTS................................ 34-41
<PAGE>
COMPAS CAPITAL FUNDS [GRAPHIC OMITTED]
PRESIDENT'S LETTER
March 31, 1997
Dear Shareholder:
We welcome the opportunity to present the March 31, 1997 semi-annual
report for your Compass Capital Funds.
WHAT HAPPENED IN THE ECONOMY AND FINANCIAL MARKETS.
The past six months have again given both stock and bond investors
positive returns. However, as I mentioned in my November letter, the staggering
returns of 1995 and 1996 are unlikely to be repeated in 1997.
The stock market exhibited significant volatility during the first quarter
of 1997, as the Dow Jones Industrial Average reached its all-time high in
mid-March before falling over 7% by quarter-end. Likewise, the domestic bond
market has taken on an increasingly negative tone as stronger economic data and
resultant inflation fears have caused interest rates to rise significantly since
mid-February. Consequently, the Federal Reserve increased the Fed funds target
rate by 1/4% as a pre-emptive strike at inflation.
OUR THOUGHTS ON THE ECONOMY.
Although we expect economic strength to continue through mid-year,
inflation has remained relatively low. While we believe that additional interest
rate increases by the Fed may be necessary to subdue economic growth to a more
sustainable rate of 2.25%-2.50%, we do not believe that 1997 will be a repeat of
the dramatic rise in short term interest rates that we witnessed in 1994.
Rather, we expect that the Federal Reserve's proactive monetary policy should
keep inflationary pressures constrained.
WHAT THIS MEANS TO THE SHAREHOLDERS.
The recent market turbulence underscores the importance of developing a
long-term investment strategy based on your specific financial goals. Though
each investor's financial situation and risk tolerance are unique, the common
thread among all successful long-term investment strategies is a commitment to
BEING INVESTED at all times. Additionally, recent market performance has
reminded us that a diversified portfolio can potentially enhance returns in
addition to reducing volatility. For example, as the U.S. markets retreated over
the past few months, international stocks and bonds have posted strong gains,
most notably in the emerging markets. In fact, total returns for emerging market
stocks in the first quarter of 1997 were nearly four times those of their U.S.
counterparts, emphasizing the potential benefit of a diversified portfolio.
1
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
This report is just one of the many ways we are continually striving to
provide our shareholders with the information necessary to make informed
investment decisions. We would like to thank you for your continued confidence
in the Compass Capital Funds and look forward to helping you reach your
long-term investment goals.
Sincerely,
/S/ KAREN H. SABATH
Karen H. Sabath
PRESIDENT, COMPASS CAPITAL GROUP, INC.
2
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
CERTIFICATES OF DEPOSIT--24.9%
DOMESTIC --5.1%
Chase Manhattan Bank-Delaware
5.53% 07/28/97 $ 50,000 $ 50,000,000
First National Bank of Boston
5.46% 08/06/97 50,000 50,000,000
Morgan Guaranty Trust of New York
5.73% 08/12/97 24,000 23,999,376
Wilmington Trust Co.
5.35% 05/27/9 20,000 20,000,000
--------------
143,999,376
--------------
YANKEE DOLLAR--19.8%
Bank of Nova Scotia
6.08% 08/04/97 25,000 25,027,301
Bank of Tokyo-Mitsubishi
5.55% 04/03/97 50,000 50,000,000
5.54% 06/11/97 30,000 30,001,884
Banque Nationale de Paris
5.37% 05/14/97 25,000 25,001,062
Deutsche Bank
5.36% 05/12/97 38,000 38,000,944
Industrial Bank of Japan
5.50% 04/16/97 50,000 50,000,000
Midland Bank
5.43% 04/14/97 50,000 50,000,000
Rabobank Nederland
5.36% 05/12/97 30,000 30,000,745
Sanwa Bank Ltd. Japan
5.65% 04/25/97 25,000 25,000,332
Societe General
5.78% 08/21/97 60,000 60,015,637
5.77% 01/09/98 25,000 24,992,576
Sumitomo Bank
5.50% 04/14/97 50,000 50,000,000
5.58% 05/12/97 25,000 25,000,846
Svenska Handelsbanken, Inc.
5.35% 05/27/97 50,000 50,000,000
5.36% 05/27/97 25,000 24,999,616
--------------
558,040,943
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $702,040,319) 702,040,319
--------------
COMMERCIAL PAPER--53.0%
ASSET BACKED SECURITIES--15.2%
Beta Finance, Inc.
5.35% 04/21/97 8,000 7,976,222
5.35% 04/23/97 23,000 22,924,803
5.30% 05/14/97 14,000 13,911,372
Ciesco LP
5.30% 04/10/97 25,000 24,966,875
Corporate Receivables Corp.
5.30% 04/10/97 25,000 24,966,875
5.35% 05/29/97 40,000 39,655,222
5.40% 07/14/97 30,000 29,532,000
Countrywide Funding Corp.
5.34% 04/08/97 40,000 39,958,467
5.30% 05/14/97 50,400 50,080,940
CXC, Inc.
5.36% 05/16/97 50,000 49,665,000
5.55% 05/21/97 25,000 24,807,292
Par
Maturity (000) Value
-------- -------- --------------
COMMERCIAL PAPER (CONTINUED)
Sigma Finance, Inc.
5.37% 04/04/97 $ 25,000 $ 24,988,812
5.47% 06/05/97 25,000 24,753,090
5.38% 06/11/97 50,000 49,469,472
--------------
427,656,442
--------------
BANKS--5.6%
AB Spintab Swedmortgage
5.38% 04/14/97 50,000 49,902,771
Amro N.A. Finance, Inc.
5.27% 06/09/97 25,000 24,747,240
Morgan J. P. & Co.
5.36% 07/17/97 75,000 73,805,167
Swedbank, Inc.
5.40% 07/07/97 10,000 9,854,500
--------------
158,309,678
--------------
CHEMICALS--1.1%
ICI Wilmington, Inc.
5.32% 05/13/97 30,000 29,813,625
--------------
CREDIT INSTITUTIONS--3.7%
Ford Motor Credit Corp.
5.33% 04/28/97 50,000 49,800,125
General Motors Acceptance Corp.
5.48% 05/14/97 30,000 29,803,633
5.39% 06/30/97 25,000 24,663,125
--------------
104,266,883
--------------
CUTLERY, HANDTOOLS & GENERAL HARDWARE--1.9%
Gillette Co.
6.70% 04/01/97 53,020 53,020,000
--------------
FINANCE SERVICES--4.1%
Dakota Certificates Program
5.35% 04/03/97 21,885 21,878,495
5.30% 04/15/97 37,000 36,923,739
5.33% 05/15/97 40,000 39,739,422
Old Line Funding Corp.
5.34% 04/01/97 17,616 17,616,000
--------------
116,157,656
--------------
GLASS--1.8%
Newell Co.
5.33% 04/07/97 50,000 49,955,583
--------------
RETAIL MERCHANDISING--1.8%
Block Financial Corp.
5.35% 04/02/97 50,000 49,992,569
--------------
SECURITY BROKERS & DEALERS--7.9%
Lehman Brothers Holdings, Inc.
5.62% 05/28/97 50,000 49,555,083
Merrill Lynch & Co.
5.30% 08/14/97 50,000 49,006,250
Morgan Stanley Group, Inc.
5.34% 04/21/97 50,000 49,851,667
Nomura Holding America, Inc.
5.36% 05/08/97 25,000 24,862,278
5.30% 05/19/97 25,000 24,823,333
5.40% 05/30/97 25,000 24,778,750
--------------
222,877,361
--------------
See accompanying notes to financial statements.
3
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- --------------
COMMERCIAL PAPER (CONTINUED)
SERVICES -- AUTO RENTAL & LEASING--4.6%
PHH Corp.
6.75% 04/01/97 $100,000 $ 100,000,000
5.28% 04/07/97 28,000 27,975,360
--------------
127,975,360
--------------
TELECOMMUNICATIONS--5.3%
GTE Corp.
6.85% 04/01/97 88,200 88,200,000
MCI Communications Corp.
5.32% 05/29/97 40,000 39,657,156
5.57% 07/01/97 20,400 20,112,774
--------------
147,969,930
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,487,995,087) 1,487,995,087
--------------
TIME DEPOSITS--9.4%
Bank of Tokyo-Mitsubishi
6.00% 04/10/97 50,000 50,000,000
Banque National de Paris
6.87% 04/01/97 100,000 100,000,000
Suntrust Banks, Inc.
6.50% 04/01/97 115,000 115,000,000
--------------
TOTAL TIME DEPOSITS
(Cost $265,000,000) 265,000,000
--------------
GUARANTEED INVESTMENT CONTRACT--0.4%
Peoples Security Life
5.59% 04/01/97 10,000 10,000,000
--------------
(Cost $10,000,000)
MEDIUM TERM NOTES--3.0%
BANKS--0.2%
Societe Nationale Bank
6.50% 04/25/97 5,000 5,002,511
--------------
CREDIT INSTITUTIONS--0.5%
General Motors Acceptance Corp.
5.62% 10/30/97 15,000 14,994,846
--------------
FINANCE LESSORS--1.6%
IBM Credit Corp.
5.80% 10/07/97 25,000 24,993,787
5.70% 10/27/97 20,000 19,996,811
--------------
44,990,598
--------------
SECURITY BROKERS & DEALERS--0.7%
Bear Stearns & Co., Inc.
5.86% 01/20/98 20,000 20,000,000
--------------
TOTAL MEDIUM TERM NOTES
(Cost $84,987,955) 84,987,955
--------------
VARIABLE RATE OBLIGATIONS--9.1%
FINANCE SERVICES--1.4%
SMM Trust 1997
5.65%** 04/16/97 40,000 40,000,000
--------------
SECURITY BROKERS & DEALERS--6.1%
Bear Stearns & Co., Inc.
5.41%** 04/06/97 40,000 40,000,000
5.55%** 04/22/97 50,000 50,000,000
5.63%** 04/26/97 30,000 30,000,000
Lehman Brothers Holdings, Inc.
5.65%** 06/06/97 50,000 50,000,000
--------------
170,000,000
--------------
Par
Maturity (000) Value
-------- -------- ---------------
VARIABLE RATE OBLIGATIONS (CONTINUED)
STUDENT LOAN MARKETING ASSOCIATION--0.9%
5.58%** 04/01/97 $ 5,000 $ 4,995,147
5.61%** 04/01/97 21,000 20,998,311
--------------
25,993,458
--------------
YANKEE DOLLAR--0.7%
Royal Bank of Canada
5.55%** 04/01/97 20,000 19,986,264
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $255,979,722) 255,979,722
--------------
INFINITY CASH RESERVE, PRIME--0.3%
Infinity Cash Reserve - Prime
(Cost $7,068,052) 7,068 7,068,052
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $2,813,071,135*) 100.1% 2,813,071,135
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.1%) (1,719,467)
------ --------------
NET ASSETS (Equivalent to $1.00
per share based on 924,247,725
Institutional shares, 1,658,058,338
Service shares, 228,817,036 Investor
A shares, 294,821 Investor B shares
and 500 Investor C shares outstanding) 100.0% $2,811,351,668
====== ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A, INVESTOR B,
AND INVESTOR C SHARE
($2,811,351,668 / 2,811,418,420) $1.00
=====
- ----------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1997 and maturities shown are the
next interest rate readjustment date.
See accompanying notes to financial statements.
4
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
U.S. TREASURY MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- --------------
U.S. TREASURY OBLIGATIONS--29.5%
U.S. TREASURY BILLS--1.1%
5.17% 04/03/97 $11,500 $ 11,496,697
U.S. TREASURY NOTES--28.4%
6.50% 04/30/97 25,000 25,016,719
6.50% 05/15/97 10,000 10,008,640
6.12% 05/31/97 50,000 50,046,609
5.62% 06/30/97 20,000 20,012,556
5.50% 07/31/97 55,000 55,017,316
6.00% 08/31/97 15,000 15,009,896
8.75% 10/15/97 10,000 10,143,113
7.37% 11/15/97 20,000 20,209,243
5.37% 11/30/97 40,000 39,962,428
5.00% 01/31/98 10,000 9,938,246
5.12% 02/28/98 25,000 24,898,986
7.87% 04/15/98 15,000 15,280,752
--------------
295,544,504
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $307,041,201) 307,041,201
--------------
REPURCHASE AGREEMENTS--70.4%
Donaldson, Lufkin & Jenrette
6.45% 04/01/97 45,000 45,000,000
(Agreement dated 03/31/97 to be
repurchased at $45,008,063.
Collateralized by a $45,326,000
U.S. Treasury Notes 6.375% due
01/15/99. The value of the collateral
is $45,917,958.)
Goldman Sachs & Co.
6.00% 04/01/97 49,000 49,000,000
(Agreement dated 03/31/97 to be
repurchased at $49,008,167.
Collateralized by $52,773,000
U.S. Treasury Bonds 6.50% due
11/15/26. The value of the collateral
is $48,691,325.)
Greenwich Capital Markets, Inc.
6.40% 04/01/97 200,000 200,000,000
(Agreement dated 03/31/97 to be
repurchased at $200,035,556.
Collateralized by $212,929,000
U.S. Treasury Bonds 3.375% to
7.625% due 01/15/07 to 11/15/26.
The value of the collateral
is $202,309,731.)
J. P. Morgan Securities
6.10% 04/01/97 45,000 45,000,000
(Agreement dated 03/31/97 to be
repurchased at $45,007,625.
Collateralized by $30,074,000
U.S. Treasury Bonds 8.125% due
08/15/21, and $11,922,000 U.S.
Treasury Notes 7.50% due 02/15/05.
The value of the collateral
is $45,900,913.)
Lehman Government Securities, Inc.
6.40% 04/01/97 100,000 100,000,000
(Agreement dated 03/31/97 to be
repurchased at $100,017,778.
Collateralized by $447,890,003
GNMAStrip Notes 7.25% to 11.62%
due 02/15/15 to 11/15/26. The value
of the collateral is $102,000,989.)
Par
Maturity (000) Value
-------- -------- -------------
REPURCHASE AGREEMENTS (CONTINUED)
Merrill Lynch
6.35% 04/01/97 $ 45,000 $ 45,000,000
(Agreement dated 03/31/97 to be
repurchased at $45,007,938.
Collateralized by $46,303,000
U.S. Treasury Notes 5.75% to 7.50%
due 02/28/02 to 05/15/04. The value
of the collateral is $45,460,209.)
Morgan Stanley & Co.
6.71% 04/01/9 203,500 203,500,000
(Agreement dated 03/31/97 to be
repurchased at $203,537,930.
Collateralized by $206,645,000
U.S. Treasury Notes 4.75% to 6.125%
due 05/31/97 to 09/30/98. The value
of the collateral is $205,581,865.)
Swiss Bank Corp.
6.45% 04/01/97 45,000 45,000,000
(Agreement dated 03/31/97 to be --------------
repurchased at $45,008,063.
Collateralized by $29,952,000
U.S. Treasury Bonds 14.00% due
11/15/11. The value of the collateral
is $45,901,440.)
TOTAL REPURCHASE AGREEMENTS
(Cost $732,500,000) 732,500,000
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,039,541,201*) 99.9% 1,039,541,201
--------------
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 576,571
------- --------------
NET ASSETS (Equivalent to $1.00 per
share based on 162,746,604
Institutional shares, 856,688,813
Service shares and 20,948,095
Investor A shares outstanding) 100.0% $1,040,117,772
======= ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($1,040,117,772 / 1,040,383,512) $1.00
=====
- -------------
* Aggregate cost for Federal tax purposes.
5
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- -------------
MUNICIPAL BONDS--99.7%
ALASKA--1.2%
Valdez Marine Terminal (ARCO Project)
Series 1994A MB
3.55% 05/09/97 $ 5,000 $ 5,000,000
--------------
ARIZONA--4.3%
Apache County IDA (Tuscon Electric
Power Co. Project) Series 1983 DN
3.50%** 04/07/97 15,400 15,400,000
Cochise County Pollution Control Solid
Waste Disposal RB (Arizona Electric
Power Cooperative, Inc. Project)
Series 1994 MB
3.50% 09/02/97 2,000 2,000,000
--------------
17,400,000
--------------
CALIFORNIA--10.3%
California Series 1996A RAN
4.50% 06/30/97 4,500 4,505,655
Los Angeles County Series 1996A TRAN
4.50% 06/30/97 19,400 19,428,350
Southeast Resource Recovery Facility
Authority Series 1993A DN
3.45%** 04/07/97 17,900 17,900,000
--------------
41,834,005
--------------
COLORADO--2.5%
Colorado State General Fund RB
Series 1996A TRAN
4.50% 06/27/97 5,000 5,007,456
Denver City and County Airport Authority
RB Series 1997 TECP
3.70% 05/06/97 3,000 3,000,000
Denver City and County Airport Authority
RB Series 1997C TECP
3.70% 05/06/97 2,000 2,000,000
--------------
10,007,456
--------------
CONNECTICUT--1.2%
Connecticut State of Special Assessment
Unemployment Compensation Advance
Fund RB (Connecticut Unemployment
Project) Series 1993C MB
3.90% 07/01/97 5,000 5,000,000
--------------
DELAWARE--1.6%
Delaware Economic Development
Authority RB (Normaco Income
Project) Series 1984 DN
3.70%** 04/07/97 6,600 6,600,000
--------------
FLORIDA--5.1%
Dade County RB (Youth Fair & Exposition
Project) Series 1995 DN
3.50%** 04/07/97 4,820 4,820,000
Sunshine State Governmental Financing
Commission RB (Governmental
Financing Project) Series 1997 TECP
3.50% 05/12/97 9,720 9,720,000
Volusia County Health Facilities Authority
RB (SW Volusia Health Project)
Series 1994A DN
3.45%** 04/07/97 6,175 6,175,000
--------------
20,715,000
--------------
Par
Maturity (000) Value
-------- -------- --------------
MUNICIPAL BONDS (CONTINUED)
GEORGIA--3.8%
Burke County Pollution Control RB
(Oglethorpe Power Company)
Series 1997 MB
3.60% 04/07/97 $ 2,000 $ 2,000,000
Clayton County Development Authority
RB (McIlrath Corp. Project)
Series 1986 DN
3.65%** 04/07/97 4,375 4,375,000
Fulton County Development Authority RB
(Georgia Tech Athletic Association
Project) Series 1995 DN
3.50%** 04/07/97 7,500 7,500,000
Fulton County Development Authority RB
(The Alfred and Adele Davis Academy
Income Project ) Series 1996 DN
3.50%** 04/07/97 1,500 1,500,000
--------------
15,375,000
--------------
ILLINOIS--12.2%
Illinois Development Finance Authority
IDR (Chicago Symphony Project)
Series 1996 DN
3.50%** 04/07/97 10,000 10,000,000
Illinois Development Finance Authority
IDR (6 West Hubbard Street Project)
Series 1986 DN
3.90%** 04/07/97 3,355 3,355,000
Illinois Development Finance Authority
IDR (Foundation For Safety & Health
Project) Series 1992 DN
3.45%** 04/07/97 5,350 5,350,000
Illinois Development Finance Authority
IDR (Royal Continental Box Co. Project)
Series 1995A DN
3.75%** 04/07/97 1,000 1,000,000
Illinois Development Finance Authority
IDR (Webster-Wayne Shopping Center
Project) Series 1995 DN
3.45%** 04/07/97 3,810 3,810,000
Illinois Development Finance Authority
Pollution Control RB (Commonwealth
Edison Co. Project) Series 1994C DN
3.45%** 04/07/97 2,000 2,000,000
Illinois Health Facilities Authority RB
(Evanston Hospital Corp. Project)
Series 1990A MB
3.85% 10/15/97 5,000 5,000,000
Illinois Health Facilities Authority RB
(Revolving Fund Pooled Financing
Project) Series 1985 DN
3.45%** 04/07/97 4,400 4,400,000
Illinois Housing Development Finance
Authority RB (Homeowner Mortgage
Project) Series 1996F-2 MB
3.70% 12/18/97 4,000 4,000,000
Illinois Student Loan Authority RB
Series 1996A DN
3.55%** 04/07/97 6,860 6,860,000
Tinley Park Multi-Family Housing
Mortgage RB (Edgewater Walk
Phase IIIA & IIIB Project)
Series 1994 DN
3.45%** 04/07/97 2,425 2,425,000
See accompanying notes to financial statements.
6
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- --------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
Village of Schiller Park IDR (Victor
Products Corp. Project)
Series 1995 DN
3.85%** 04/07/97 $ 1,500 $ 1,500,000
------------
49,700,000
------------
INDIANA--2.5%
South Bend Redevelopment Authority
(College Football Hall of Fame Project)
Series 1994 DN
3.45%** 04/07/97 10,000 10,000,000
------------
IOWA--1.6%
Louisa County PCR (Iowa-Illinois Gas and
Electric Co. Project) Series 1986A DN
3.45%** 04/07/97 6,400 6,400,000
------------
KENTUCKY--3.0%
Jefferson County PCRB (Louisville Gas &
Electric Company Project)
Series 1996A TECP
3.50% 05/23/97 7,000 7,000,000
Maysville Solid Waste Disposal Facilities
RB (Inland Container Corp. Project)
Series 1992 MB
3.70% 06/19/97 5,000 5,000,000
------------
12,000,000
------------
LOUISIANA--0.5%
Jefferson Parish Hospital RB
Series 1985 DN
3.40%** 04/07/97 2,200 2,200,000
------------
MARYLAND--10.2%
Anne Arundel County RB (Mountain
Ridge Apartments Project)
Series 1996D DN
3.50%** 04/02/97 6,405 6,405,000
Baltimore County RB (Paths At Loveton
Project) Series 1996 DN
3.45%** 04/07/97 5,720 5,720,000
Baltimore County RB (Shade Tree Trace
Project) Series 1996 DN
3.50%** 04/07/97 6,570 6,570,000
Maryland Health & Higher Education
Facilities Authority RB (Helix Health
Hospitals Project) Series 1996A DN
3.50%** 04/07/97 5,000 5,000,000
Maryland IDA Finance (Brass Mill Road
Limited Partnership Facility Project)
Series 1995 DN
3.50%** 04/07/97 3,665 3,665,000
Maryland IDA Finance (Patapsco
Associates Limited Partnership Facility
Project) Series 1995 DN
3.50%** 04/07/97 2,270 2,270,000
Montgomery County Consolidated BAN
Series 1996 TECP
3.20% 04/01/97 12,000 12,000,000
------------
41,630,000
------------
MICHIGAN--2.7%
Michigan State Building Authority RB
Series I TECP
3.50% 05/01/97 5,500 5,500,000
Par
Maturity (000) Value
-------- -------- --------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
Michigan State Building Authority
Series I TECP
3.55% 05/01/97 $ 3,400 $ 3,400,000
Northville IDA (Thrifty Northville Project)
Series 1984 DN
3.52%** 04/07/97 2,000 2,000,000
------------
10,900,000
------------
MISSOURI--3.2%
Kansas IDA (Mid-America Health Services
Project) Series 1984 DN
3.60%** 04/07/97 4,500 4,500,000
Missouri Environmental Improvement &
Energy Resource Authority RB
(Monsanto Co. Project)
Series 1988 DN
3.45%** 04/07/97 4,900 4,900,000
Missouri Higher Education Student Loan
Authority RB Series 1990 DN
3.50%** 04/07/97 3,400 3,400,000
------------
12,800,000
------------
MONTANA--0.7%
Forsyth Pollution Control RB (Portland
General Electric Co. Project)
Series 1983 DN
3.50%** 04/07/97 3,000 3,000,000
------------
NEBRASKA--2.3%
Nebraska Investment Finance Authority
Multifamily Loan RB (Apple Creek
Associates Project) Series 1985A DN
3.80%** 04/07/97 1,900 1,900,000
Nebraska Public Power District
Series 1997A TECP
3.55% 06/12/97 7,000 7,000,000
Stanton County Industrial Development
RB (Nucor Corp. Project)
Series 1996 DN
3.55%** 04/07/97 300 300,000
------------
9,200,000
------------
NEVADA--0.2%
Henderson Public Improvement Trust RB
(Berry Plastics Corp. Project)
Series 1991 DN
3.85%** 04/07/97 900 900,000
------------
NEW HAMPSHIRE--1.5%
New Hampshire Higher Educational and
Health Facilities Authority RB (Hunt
Community Issue Project)
Series 1996 DN
3.55%** 04/07/97 6,220 6,220,000
------------
NORTH CAROLINA--6.6%
North Carolina Eastern Municipal Power
Agency TECP
3.40% 06/12/97 6,500 6,500,000
North Carolina Medical Care Commission
(Pooled Equipment Financing Project)
Series 1985 DN
3.50%** 04/07/97 12,000 12,000,000
See accompanying notes to financial statements.
7
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
North Carolina Medical Care Commission
Hospital RB (Moses H. Cone Memorial
Hospital Project) Series 1995 DN
3.45%** 04/07/97 $ 4,000 $ 4,000,000
Wake County Industrial Facilities &
Pollution Control Financing Authority
RB (Carolina Power & Light Co. Project)
Series 1985B DN
3.65%** 04/07/97 1,600 1,600,000
Wake County Industrial Facilities &
Pollution Control Financing Authority
RB (Carolina Power & Light Co.
Project) Series 1985C DN
3.65%** 04/07/97 2,900 2,900,000
------------
27,000,000
------------
OHIO--3.2%
Clermont County Hospital Facilities
Authority RB (Mercy Health Systems
Project) Series 1994B DN
3.45%** 04/07/97 4,764 4,764,000
Clermont County Hospital Facilities
Authority RB (Mercy Health Systems
Project) Series 1996A DN
3.45%** 04/07/97 1,000 1,000,000
Ohio Higher Educational Facility
Community RB (Oberlin College
Project) Series 1985 DN
3.40%** 04/07/97 200 200,000
Ohio State Housing Finance Authority
Residential Mortgage RB Series 1997
3.55% 09/01/97 5,000 5,000,000
Youngstown Industrial Development RB
(Portage Transformer Company Project)
Series 1996 DN
3.70%** 04/07/97 2,050 2,050,000
------------
13,014,000
------------
OKLAHOMA--1.7%
Muskogee Industrial Trust PCR
(Oklahoma Gas and Electric Project)
Series 1995A DN
3.55%** 04/07/97 3,200 3,200,000
Oklahoma Water Resources Board State
Loan Program RB Series 1995 MB
3.50% 09/02/97 3,820 3,820,000
------------
7,020,000
------------
PENNSYLVANIA--1.2%
Montgomery County IDA Pollution
Control RB (Peco Energy Project)
Series 1994A TECP
3.25% 04/01/97 2,000 2,000,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985L DN
3.40%** 04/07/97 600 600,000
Sayre Health Care Facility Authority
(VHA Capital Financing Project)
Series 1985J DN
3.40%** 04/07/97 2,500 2,500,000
------------
5,100,000
------------
Par
Maturity (000) Value
-------- -------- --------------
MUNICIPAL BONDS (CONTINUED)
SOUTH DAKOTA--1.2%
Lawrence County PCR (Homestate
Mining Project) Series 1983 DN
3.40%** 04/07/97 $ 4,800 $ 4,800,000
------------
TENNESSEE--4.8%
Montgomery County Public Building
Authority Pooled Financing RB
(Montgomery County Loan Project)
Series 1995 DN
3.50%** 04/07/97 5,000 5,000,000
Montgomery County Public Building
Authority Pooled Financing RB
(Tennessee County Loan Pool
Project) Series 1995 DN
3.50%** 04/07/97 8,600 8,600,000
Oak Ridge Industrial Development RB
(Solid Waste M4 Environmental Project)
Series 1996 DN
3.55%** 04/07/97 900 900,000
Tennessee Housing Authority
(Homeownership Project)
Series 1996 MB
3.85% 05/29/97 5,000 5,000,000
------------
19,500,000
------------
TEXAS--3.3%
Angelina and Neches River Authority
Solid Waste Disposal RB (Temple-Eastex
Incorporated Project) Series 1993 MB
3.70% 06/19/97 1,000 1,000,000
Austin Higher Education Authority
(St. Edwards University Project)
Series 1995 DN
3.55%** 04/07/97 2,000 2,000,000
Brazos River Harbor Navigation District
(Dow Chemical Project)
Series 1991 TECP
3.50% 04/11/97 4,000 4,000,000
Harris County Health Facilities
Development Corp. RB (Memorial
Hospital System Project)
Series 1994B TECP
3.45% 06/02/97 6,400 6,400,000
State of Texas Series 1996 TRAN
4.75% 08/29/97 125 125,385
------------
13,525,385
------------
UTAH--0.9%
Intermountain Power Agency Supply
RB Series 1985F MB
3.93% 06/16/97 2,500 2,500,000
Intermountain Power Agency Supply
Revenue and Refunding Bonds
Series 1996 MB
3.50% 09/15/97 1,000 1,000,000
------------
3,500,000
------------
VIRGINIA--1.3%
Culpeper Town IDA Residential Care
Facility RB (Baptist Homes Project)
Series 1992 DN
3.50%** 04/07/97 1,415 1,415,000
See accompanying notes to financial statements.
8
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
Metropolitan Washington D.C. Airports
Authority Flexible Term Notes
(Passenger Facility Project) Series 1997
3.70% 09/26/97 $4,000 $ 4,000,000
------------
5,415,000
------------
WASHINGTON--4.2%
King County Washington Sewer Revenue
Notes Series 1997A
3.50% 08/20/97 5,000 5,000,000
Washington Health Care Facilities
Authority RB (Yakima Valley Farm
Workers Project) Series 1997 DN
3.40%** 04/07/97 3,900 3,900,000
Washington Public Power Supply System
Electric RB Series 1993 1A-3 DN
3.40%** 04/07/97 300 300,000
Washington State Housing Finance
Commission Multifamily RB (Lake
Washington Apartments Project)
Series 1996 DN
3.50%** 04/07/97 5,000 5,000,000
Yakima County Public Corporation RB
(Jeld-Wen Income Project)
Series 1988 DN
3.45%** 04/07/97 3,040 3,040,000
------------
17,240,000
------------
WISCONSIN--0.7%
Oak Creek PCR (Wisconsin Electric Power
Co. Project) Series 1986 DN
3.45%** 04/07/97 1,300 1,300,000
Wisconsin Health & Education Facilities
Authority (Daughters of Charity Health
Center Project) Series 1992 DN
3.45%** 04/07/97 1,500 1,500,000
------------
2,800,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $405,795,846*) 99.7% 405,795,846
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.3% 1,028,451
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 57,538,504
Institutional shares, 345,457,317
Service shares and 3,856,011
Investor A shares outstanding) 100.0% $406,824,297
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($406,824,297 / 406,851,832) $1.00
=====
- -------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1997, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
9
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS--99.5%
NEW JERSEY--93.8%
Bellmawr GO Series 1996 MB
4.90% 08/01/97 $ 175 $ 175,595
Bergen County GO Series 1996 MB
5.20% 10/01/97 500 503,419
Bergen County Utilities Authority Water
PCRB Series 1997 MB
3.50% 12/15/97 720 720,000
Bernardsville Township GO
Series 1996 BAN
3.87% 04/18/97 3,063 3,063,357
Boonton GO Series 1996 MB
4.95% 09/01/97 195 195,810
Camden County Improvement Authority
RB (Jewish Community Center Project)
Series 1995 DN
3.30%** 04/02/97 1,135 1,135,000
Cape May County Municipal Utilities
Authority Sewer RB Series 1992 MB
5.60% 01/01/98 500 507,327
Carlstadt GO Series 1997 MB
4.75% 03/01/98 350 353,484
Essex County Public Improvement
Authority Project RB (County Asset
Sale Project) Series 1995 DN
3.30%** 04/07/97 2,500 2,500,000
Gloucester County PCR (Mobil Oil
Refining Co. Project) Series 1993 DN
3.10%** 04/07/97 2,810 2,810,000
Hawthorne General Improvement
GO Series 1996 MB
5.20% 08/15/97 150 150,714
Hunterdon County GO Series 1996B MB
5.00% 05/01/97 765 765,716
Margate City BAN Series 1997 MB
3.68% 03/04/98 2,630 2,630,682
Mercer County GO Series 1992 BAN
5.20% 08/01/97 400 401,973
Mercer County Improvement Authority RB
(Pooled Government Loan Project)
Series 1985 DN
3.15%** 04/07/97 2,900 2,900,000
Middlesex County Unlimited GO
Series 1993 MB
3.90% 07/15/97 750 750,755
Millburn Township GO Series 1996 MB
4.60% 11/15/97 400 402,107
Monroe Township Middlesex County
GO Series 1996 BAN
4.25% 04/17/97 957 956,870
4.00% 02/25/98 1,602 1,606,906
Montclair General Improvement GO
Series 1998 MB
4.90% 01/01/98 190 191,810
Morris County GO Series 1996 BAN
3.97% 08/08/97 1,336 1,336,179
3.57% 12/11/97 1,000 1,000,468
New Jersey Economic Development
Authority RB (Industrial Improvements)
Series 1992C DN
3.50%** 04/07/97 465 465,000
New Jersey Economic Development
Authority RB (Manhattan Bagel
Company, Inc. Project) Series 1995 DN
3.50%** 04/07/97 900 900,000
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
New Jersey Economic Development
Authority RB (Nandan Co. Project)
Series 1995 DN
3.65%** 04/07/97 $ 2,260 $ 2,260,000
New Jersey Economic Development
Authority Exempt Facility RB
(Keystone Project) Series 1992 MB
3.40% 07/16/97 3,000 3,000,000
New Jersey Economic Development
Authority Industrial and Economic
Development RB (East Meadow Corp.
Project B) Series 1986B DN
3.55%** 04/07/97 4,770 4,770,000
New Jersey Economic Development
Authority Industrial Development RB
(Union Ave Association Project) DN
3.65%** 04/01/97 4,900 4,900,000
New Jersey Economic Development
Authority PCRB (Public Service
Electric & Gas Company)
Series 1996 A DN
2.90%** 04/07/97 600 600,000
New Jersey Economic Development
Authority PCRB (Public Service Electric
& Gas Company) Series 1995A DN
3.10%** 04/07/97 700 700,000
New Jersey Economic Development
Authority RB (Danic Urban Renewal
Project) Series 1985 DN
3.10%** 04/07/97 1,850 1,850,000
New Jersey Economic Development
Authority RB (Franciscan Oaks
Project B) Series 1992B DN
3.35%** 04/02/97 400 400,000
New Jersey Economic Development
Authority RB (Hillcrest Health Services
Systems Project) Series 1995 DN
3.30%** 04/07/97 11,100 11,100,000
New Jersey Economic Development
Authority RB (Local Housing)
Series 1992D-1 DN
3.50%** 04/07/97 1,820 1,820,000
New Jersey Economic Development
Authority RB (Russell Berrie Company
Project) Series 1983 DN
3.05%** 04/02/97 200 200,000
New Jersey Economic Development
Authority RB (Winchester Gardens;
Ward Homestead Project)
Series 1995B DN
3.35%** 04/07/97 14,740 14,740,000
New Jersey Economic Development
Authority Thermal Energy Facilities
RB (Thermal Energy, L.P. Project)
Series 1995 MB
3.50% 04/10/97 1,500 1,500,000
New Jersey GO Series 1990 MB
7.00% 04/01/97 500 500,000
New Jersey Sports and Exposition
Authority RB Series 1992C DN
3.25%** 04/07/97 5,600 5,600,000
New Jersey State Economic Development
Authority GO Facilities RB
4.62% 07/01/97 500 501,372
See accompanying notes to financial statements.
10
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
New Jersey State Educational Facilities
Authority RB (Drew University Project)
Series 1997B MB
4.00% 03/01/98 $ 270 $ 270,713
New Jersey State GO Series 97-ADN
3.40%** 04/08/97 3,000 3,000,000
New Jersey State GO TECP
3.45% 06/20/97 2,000 2,000,000
New Jersey State TAN Series 96-A
3.15% 04/03/97 2,000 2,000,000
New Jersey Transportation Trust Fund
Authority Trust Receipts (Transportation
System Project) RB Series 1996A DN
3.35%** 04/07/97 7,500 7,500,000
New Jersey Turnpike Authority RB
Series 1991D DN
3.20%** 04/07/97 2,600 2,600,000
Newark GO Series 1993 MB
4.40% 10/01/97 200 200,778
Newark Water Utility RB Series 1996 MB
5.50% 10/01/97 377 380,406
North Brunswick GO Series 1993 MB
4.00% 10/01/97 210 210,254
Parsippany-Troy Hills Township GO
Series 1996 BAN
4.00% 05/07/97 1,500 1,500,513
4.25% 10/31/97 2,000 2,005,509
Passiac County Utilities Authority Solid
Waste System RB Series 1996B MB
3.95% 09/03/97 1,250 1,250,000
Princeton Township GO Series 1996 BAN
4.37% 08/27/97 1,400 1,403,173
Ringwood Borough BAN Series 1997 MB
4.25% 03/20/98 1,457 1,462,140
Roselle GO Series 1997 MB
4.95% 02/15/98 310 313,566
Salem County GO Series 1996 MB
5.35% 09/01/97 175 176,048
Salem County Industrial Pollution Control
Financing Authority RB (E.I. DuPont de
Nemours and Company Project)
Series 1982A DN
3.55%** 04/07/97 3,100 3,100,000
Somerset County GO Series 1988 MB
6.50% 11/01/97 230 233,875
Tabernacle School District GO
Series 1996 MB
5.37% 09/01/97 175 176,063
Union County GO Series 1995 MB
4.40% 09/01/97 500 501,735
Union Township Public Improvement
GO Series 1996 MB
4.50% 12/01/97 303 304,599
Waldwick GO Series 1996 MB
3.84% 05/28/97 2,524 2,523,697
Woodcliff Lake School District GO
Series 1997 Unlimited RB
5.00% 02/15/98 150 151,856
Wyckoff Township School District GO
School District RB Series 1996
4.60% 01/15/98 500 503,356
------------
114,632,825
------------
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
NEW YORK--0.8%
Port Authority New York and
New Jersey MB
3.50% 07/09/97 $ 925 $ 925,000
------------
PUERTO RICO--4.9%
Puerto Rico Government
Development Bank TECP
3.50% 05/09/97 4,000 4,000,000
Puerto Rico Government
Development Bank TECP
3.35% 05/08/97 2,000 2,000,000
------------
6,000,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $121,557,825*) 99.5% 121,557,825
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.5% 640,888
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 2,331,474
Institutional shares, 93,960,653
Service shares, 25,883,557 Investor A
shares and 40,000 Investor B
shares outstanding) 100.0% $122,198,713
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A AND INVESTOR B SHARE
($122,198,713 / 122,215,684) $1.00
=====
- -------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1997, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
11
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS--100.5%
NORTH CAROLINA--91.6%
Bladen County Industrial Facilities and
Pollution Control Financing Authority
Resource Recovery RB (BCH Energy,
L.P. Project) Series 1993 DN
3.70%** 04/07/97 $ 2,000 $ 2,000,000
Buncombe County GO Series 1996 BAN
4.00% 07/02/97 5,000 5,003,187
Buncombe County Refunded GO
Series 1988 MB
7.00% 06/01/97 150 150,783
Cabarrus County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Philip Morris Cos. Inc. Project)
Series 1993 DN
3.50%** 04/07/97 1,000 1,000,000
Cary Parks and Recreational Facilities
GO Series 1996 MB
5.10% 04/01/97 75 75,000
Cary Sanitary Sewer GO Series 1996 MB
5.10% 04/01/97 275 275,000
Cary Town Refunded GO Series 1989 MB
6.50% 09/01/97 745 753,697
Catawba County Industrial Facilities and
Pollution Control Financing Authority
IDRB (WSMP Inc. Project)
Series 1992 DN
3.65%** 04/07/97 500 500,000
Charlotte Airport Refunding RB
Series 1993A DN
3.35%** 04/07/97 1,000 1,000,000
Charlotte-Mecklenburg Hospital Authority
RB (Health Care System Project)
Series 1996B DN
3.40%** 04/07/97 2,400 2,400,000
Cleveland County GO Series 1990 MB
7.10% 06/01/97 290 291,561
Cumberland County Series 1996 BAN
4.00% 06/18/97 6,300 6,304,196
Durham County GO Series 1993 DN
3.40%** 04/07/97 300 300,000
Durham GO Series 1993 DN
3.40%** 04/07/97 4,535 4,535,000
Gaston County Industrial Facility and
Pollution Control Financing Authority
RB (Allibert Inc. Project)
Series 1987A DN
3.50%** 04/07/97 1,500 1,500,000
Green County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Federal Paper Board Co., Inc.
Project) Series 1989 DN
3.50%** 04/07/97 1,100 1,100,000
Green County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Snow Hill Tape Corp. Project)
Series 1995 DN
3.50%** 04/07/97 2,000 2,000,000
Greensboro Certificates of Participation
(Greensboro Coliseum Complex
Improvement Project) Series 1995A DN
3.40%** 04/07/97 2,000 2,000,000
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS
NORTH CAROLINA (CONTINUED)
Guilford County Industrial Facilities and
Pollution Control Financing Authority
IDRB (U.S. Label Corp. Project)
Series 1995 DN
3.50%** 04/07/97 $ 2,500 $ 2,500,000
High Point GO Series 1987 MB
7.20% 04/01/97 150 150,000
Iredell County Industrial Facilities and
Pollution Control Financing Authority
RB (Purina Mills, Inc. Project)
Series 1995 DN
3.60%** 04/07/97 4,000 4,000,000
Lee County Industrial Facilities and
Pollution Control Financing Authority
Refunding IDRB (Trion, Inc. Project)
Series 1995 DN
3.45%** 04/07/97 1,700 1,700,000
Lee County GO Series 1997 MB
4.80% 04/01/98 1,250 1,264,600
Lenoir County Industrial Facilities and
Pollution Control Financing Authority
Resource Recovery RB (Carolina Energy,
L.P. Project) Series 1995 DN
3.70%** 04/07/97 4,000 4,000,000
Mecklenburg County GO Series 1988 DN
3.40%** 04/07/97 2,000 2,000,000
Mecklenburg County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Edgcomb Metals Co. Project)
Series 1984 DN
3.40%** 04/07/97 3,500 3,500,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing Authority
IDRB (Otto Industries, Inc. Project)
Series 1988 DN
3.65%** 04/07/97 2,950 2,950,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing Authority
IDRB (Aplix, Inc. Project) Series 1996 DN
3.50%** 04/07/97 5,200 5,200,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing Authority
IDRB (Griffith Micro Science Project)
Series 1995 DN
3.60%** 04/07/97 1,500 1,500,000
Mecklenburg County GO Series 1996C DN
3.40%** 04/01/97 3,000 3,000,000
3.40%** 04/03/97 1,000 1,000,000
New Hanover County Industrial Facilities
IDRB (Interroll Corp. Project)
Series 1989 DN
3.65%** 04/03/97 1,295 1,295,000
North Carolina Agricultural Finance
Authority Agricultural Development
RB (Harvey Fertilizer & Gas Co.
Project) Series 1995 DN
3.50%** 04/07/97 1,740 1,740,000
North Carolina Eastern Municipal Power
Agency Power System RB
Series 1988 TECP
3.50% 05/14/97 3,600 3,600,000
3.40% 05/21/97 1,190 1,190,000
See accompanying notes to financial statements.
12
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS
NORTH CAROLINA (CONTINUED)
North Carolina Eastern Municipal Power
Agency Prerefunded RB
Series 1988 MB
8.00% 01/01/98 $ 4,672 $ 4,913,652
North Carolina Eastern Municipal Power
Agency RB Series 1997 TECP
3.40% 06/12/97 6,000 6,000,000
North Carolina Education Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1990 DN
3.50%** 04/07/97 900 900,000
North Carolina Educational Facilities and
Finance Agency RB (Elon College Project)
Series 1997 DN
3.35%** 04/07/97 3,815 3,815,000
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1987A DN
3.35%** 04/07/97 1,000 1,000,000
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1991B DN
3.35%** 04/07/97 1,000 1,000,000
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1996 DN
3.50%** 04/07/97 1,000 1,000,000
North Carolina Industrial Facilities and
Pollution Control Financing Authority
RB (GVK America Inc., Project)
Series 1990 MB
3.80% 12/01/97 2,535 2,535,000
North Carolina Medical Care Commission
Hospital RB (Baptist Hospital Project)
Series 1992B DN
3.45%** 04/07/97 2,900 2,900,000
North Carolina Medical Care Commission
Hospital RB (Baptist Hospital Project)
Series 1996 DN
3.45%** 04/07/97 1,700 1,700,000
North Carolina Medical Care Commission
Hospital RB (Moses H. Cone Memorial
Hospital Project) Series 1995 DN
3.45%** 04/07/97 200 200,000
North Carolina Medical Care Commission
Hospital RB (Park Ridge Hospital Project)
Series 1988 DN
3.50%** 04/07/97 400 400,000
North Carolina Medical Care Commission
Hospital RB (Pooled Equipment
Financing Project) Series 1985 DN
3.50%** 04/07/97 800 800,000
North Carolina Medical Care Commission
Hospital RB (Duke University Hospital
Project) Series 1993A DN
3.35%** 04/07/97 1,500 1,500,000
North Carolina Medical Care Commission
Hospital RB (Moses H. Cone Memorial
Hospital Project) Series 1993 DN
3.45%** 04/07/97 700 700,000
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
North Carolina Medical Care Community
Hospital (Pooled Financing Project)
Series 1994 DN
3.40%** 04/07/97 $ 400 $ 400,000
North Carolina Municipal Power Agency
Number 1 (Catawba Project)
Series 1996 TECP
3.55% 05/16/97 4,000 4,000,000
North Carolina Municipal Power Agency
Number 1 Refunded RB (Catawba)
Series 1988 MB
7.87% 01/01/98 1,150 1,209,329
North Carolina State GO Series 1997A MB
5.10% 03/01/98 8,000 8,107,419
North Carolina State University RB
Raleigh Housing System
Series 1984M MB
5.30% 09/01/97 300 302,029
Person County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Project)
Series 1992A DN
3.55%** 04/07/97 200 200,000
Rockingham County Industrial Facilities
and Pollution Control Finance Authority
RB (Philip Morris Companies Inc.
Project) Series 1992 DN
3.50%** 04/07/97 325 325,000
Union County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Square D Co. Project)
Series 1988 DN
3.40%** 04/07/97 2,600 2,600,000
University of North Carolina Chapel Hill
School of Medicine RB (Ambulatory
Care Clinic Project) Series 1990 DN
3.35%** 04/07/97 1,900 1,900,000
Wake County Industrial Facilities and
Pollution Control Finance Authority
Refunding RB (Carolina Power & Light
Co. Project) Series 1990A TECP
3.35% 04/28/97 5,500 5,500,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Co.)
Series 1985A DN
3.50%** 04/07/97 2,000 2,000,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Co. Project)
Series 1985B DN
3.65%** 04/07/97 4,200 4,200,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light)
Series 1985C DN
3.65%** 04/07/97 900 900,000
Wilson County Industrial Facilities Pollution
Control Financing Authority IDRB
(Chip Project) Series 1989 DN
3.65%** 04/07/97 800 800,000
Winston-Salem Certificates of Participation
(Risk Acceptance Management Corp.
Project) Series 1988 DN
3.45%** 04/07/97 480 480,000
------------
134,065,453
------------
See accompanying notes to financial statements.
13
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
PUERTO RICO--8.2%
Government Development Bank for Puerto
Rico Series 1997 TECP
3.50% 05/09/97 $ 6,000 $ 6,000,000
Puerto Rico Commonwealth Prerefunded
GO Series 1987 MB
7.12% 07/01/97 1,330 1,367,352
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
3.10%** 04/07/97 700 700,000
Puerto Rico Government Development
Bank Series 1997 TECP
3.35% 04/15/97 1,000 1,000,000
Puerto Rico Industrial, Medical and
Enviromental Pollution Control Facilities
Authority RB (Key Pharmaceuticals
Project) Series 1983 TECP
3.75% 12/01/97 1,500 1,500,000
Puerto Rico Industrial, Tourist, Educational,
Medical, and Environmental Control
Facilities RB (Inter-American University
Project) Series 1994 MB
3.50% 04/17/97 1,500 1,500,000
------------
12,067,352
------------
VIRGIN ISLANDS--0.7%
Virgin Islands Housing Finance Authority
Single Family Refunding RB
Series 1995B MB
3.75% 06/01/97 1,000 1,000,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $147,132,805*) 100.5% 147,132,805
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.5%) (790,449)
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 139,694,939 Institutional
shares, 6,435,874
Service shares and 211,665
Investor A shares outstanding) 100.0% $146,342,356
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($146,342,356 / 146,342,478) $1.00
=====
- -------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1997, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
14
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS--99.6%
OHIO--98.8%
Avon GO Series 1996 BAN
4.24% 07/02/97 $ 1,700 $ 1,701,071
Bedford Heights GO Series 1996 BAN
4.35% 06/19/97 900 900,468
Belmont County GO Series 1996 BAN
3.96% 10/01/97 1,000 1,001,267
4.12% 11/25/97 1,400 1,402,371
Belmont County GO Series 1997B BAN
3.92% 10/01/97 1,900 1,902,526
Berea GO Series 1996 BAN
4.10% 04/23/97 500 500,103
4.10% 10/23/97 2,550 2,553,437
Butler County GO Series 1996 BAN
4.20% 10/30/97 750 751,682
Butler County GO Series 1997 BAN
4.10% 03/20/98 1,000 1,003,723
Clear Fork Valley School District Richland
County GO Series 1997 BAN
4.20% 09/25/97 1,665 1,670,105
Clermont County Health Facilities Authority
RB (Mercy Health System Project)
Series 1996A DN
3.45%** 04/07/97 300 300,000
Clermont County Hospital Facilities
Authority RB (Mercy Health Systems
Project) Series 1994B DN
3.45%** 04/07/97 1,036 1,036,000
Cleveland Waterworks GO First Mortgage
Bonds Series 1992A MB
5.30% 01/01/98 1,000 1,012,092
Cuyahoga County Hospital Improvement
RB (St. Luke's Hospital Project)
Series 1990 DN
3.50%** 04/07/97 4,800 4,800,000
Cuyahoga County IDRB (Pleasant Lake
Associates Project) Series 1995 DN
3.55%** 04/07/97 965 965,000
Delaware County IDRB (Air Waves Inc.,
Project) Series 1995 DN
3.70%** 04/07/97 935 935,000
Erie County IDRB (Brighton Manor Co.
Project) Series 1986 DN
3.65%** 04/07/97 3,700 3,700,000
Evandale IDRB (Shv Real Estate, Inc.
Project) Series 1985 DN
3.25%** 04/07/97 1,700 1,700,000
Franklin County Hospital Refunding and
Improvement RB (U.S. Health Corp. of
Columbus Project) Series 1996A DN
3.45%** 04/07/97 4,000 4,000,000
Franklin County IDRB (Alco Standard Corp.
Project) Series 1994 DN
3.55%** 04/07/97 2,000 2,000,000
Greene County Economic Development RB
(Ashford Center Project)
Series 1995 DN
3.60%** 04/07/97 2,185 2,185,000
Greene County GO Series 1997 BAN
4.10% 03/26/98 1,360 1,364,254
Greene County IDRB (AFC Stamping &
Production, Inc.; Barsplice Products
Project) Series 1995 DN
3.70%** 04/07/97 1,000 1,000,000
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Greene County IDRB (Antioch Publishing
Co. Project) Series 1996 DN
3.70%** 04/07/97 $ 2,600 $ 2,600,000
Hamilton County Hospital Facilities RB
(Bethesda Hospital Inc, Project)
Series 1995 DN
3.35%** 04/07/97 900 900,000
Hamilton Electric System Mortgage
Revenue Bonds Series 1992A MB
4.75% 10/15/97 500 503,147
Hilliard GO Series 1996 BAN
4.40% 09/18/97 1,600 1,602,862
Lorain County Community College District
GO Series 1997 TAN
6.00% 12/01/97 535 543,497
Lucas County IDRB (Vega Industries Inc.
Project) Series 1995 DN
3.70%** 04/07/97 2,140 2,140,000
Middleburg Heights GO Series 1996 BAN
4.05% 05/29/97 585 585,179
Montgomery County Economic Development
Authority RB (Dayton Art Institute Project)
Series 1996 DN
3.55%** 04/07/97 3,600 3,600,000
Montgomery County Health Facilities RB
(Sisters of Charity Health Care Project)
Series 1995 DN
3.45%** 04/07/97 1,400 1,400,000
Montgomery GO Series 1996 BAN
4.00% 12/12/97 3,000 3,008,079
Newark GO Series 1997 BAN
4.00% 03/13/98 1,275 1,278,490
Ohio Air Quality Development Authority
PCRB (Duquesne Light & Power Project)
Series 1997 TECP
3.50% 07/14/97 3,000 3,000,000
Ohio Air Quality Development Authority
PCRB (Ohio Edison Co. Project)
Series 1988B MB
3.80% 05/01/97 1,800 1,800,000
Ohio Air Quality Development Authority
PCRB (PPG Industries, Inc. Project)
Series 1988A DN
3.65%** 04/07/97 3,200 3,200,000
Ohio Air Quality Development Authority
RB (JMG Funding, L.P. Project)
Series 1994B DN
3.45%** 04/02/97 800 800,000
Ohio Air Quality Development Authority
Refunding RB (Timken Co. Project)
Series 1992 DN
3.45%** 04/02/97 2,700 2,700,000
Ohio Environmental Improvement RB
(U.S. Steel Corp. Project)
Series 1986 DN
3.60%** 04/07/97 1,000 1,000,000
Ohio Higher Educational Facility
Community RB (Oberlin College Project)
Series 1985 DN
3.40%** 04/07/97 3,800 3,800,000
Ohio Housing Finance Agency Multi-Family
Housing RB (Lincoln Park Association
Project) Series 1985 MB
4.25% 04/21/97 690 690,000
See accompanying notes to financial statements.
15
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Ohio Housing Finance Agency Multifamily
Housing RB (The Club at Spring Valley
Apartments Project) Series 1996A DN
3.70%** 04/07/97 $ 4,500 $ 4,500,000
Ohio Housing Finance Authority Residential
Mortgage Revenue Bonds
Series 1997A MB
3.65% 03/02/98 5,000 5,000,000
Ohio IDRB (Anomatic Corp. Project)
Series 1994 DN
3.70%** 04/03/97 1,435 1,435,000
Ohio State University RB
Series 1992B DN
3.20%** 04/07/97 2,450 2,450,000
Ohio Water Authority Solid Waste Disposal
RB (American Steel & Wire Corp.
Project) Series 1995 DN
3.70%** 04/07/97 8,100 8,100,000
Ohio Water Development Authority PCRB
(Duquesne Light Company Project)
Series 1997 MB
3.50% 05/09/97 2,000 2,000,000
Ohio Water Development Authority
Refunding RB ( Timken Co. Project)
Series 1992 DN
3.45%** 04/07/97 3,000 3,000,000
Portage County IDRB (Action Super
Abrasive Project) Series 1996 DN
3.70%** 04/07/97 1,190 1,190,000
Portage County IDRB (Lovejoy Industries
Project) Series 1994 DN
3.75%** 04/07/97 1,475 1,475,000
Rocky River GO Series 1996 BAN
4.15% 09/05/97 1,242 1,243,436
Sandusky County IDRB (Brighton Manor
Co. Project) Series 1986 DN
3.65%** 04/07/97 1,500 1,500,000
Solon IDRB (Cleveland Twist Drill Co.
Project) Series 1995 DN
3.70%** 04/07/97 1,800 1,800,000
Stark County GO Series 1996 BAN
4.12% 06/19/97 2,000 2,000,913
4.10% 10/16/97 1,000 1,001,197
Strongsville GO Series 1996 BAN
3.90% 12/18/97 1,000 1,001,723
Strongsville IDRB (Web Plastics Company,
Project) Series 1997 DN
3.70%** 04/07/97 1,400 1,400,000
Summit County IDRB (Austin Printing Co.,
Inc. Project) Series 1994 DN
3.70%** 04/07/97 575 575,000
Summit County IDRB (Forest Manufacturing
Project) Series 1994 DN
3.65%** 04/03/97 500 500,000
Trumbull County IDRB (ATD Corp. Project)
Series 1995 DN
3.70%** 04/07/97 1,980 1,980,000
University Heights GO Series 1996 BAN
4.15% 05/23/97 600 600,205
Westlake Economic Development RB
(Oaks Development Co. Project)
Series 1994 DN
3.60%** 04/07/97 1,940 1,940,000
------------
118,227,827
------------
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
VIRGIN ISLANDS--0.8%
Virgin Islands Housing Finance Authority
Single Family Refunding RB
Series 1995B MB
3.75% 06/01/97 $1,000 $ 1,000,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $119,227,827*) 99.6% 119,227,827
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.4% 463,799
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 51,866,196
Institutional shares, 55,401,180
Service shares and 12,432,376
Investor A shares outstanding) 100.0% $119,691,626
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL,
SERVICE AND INVESTOR A SHARE
($119,691,626 / 119,699,752) $1.00
=====
- -------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1997, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
16
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS--99.9%
PENNSYLVANIA--94.9%
Allegheny County RB (United States Steel
Corp. Project) Series 1985 MB
3.35% 05/16/97 $ 5,000 $ 5,000,000
Allegheny County Higher Education
Building Authority RB (University of
Pittsburgh Project) Series 1985C DN
3.30%** 04/07/97 1,990 1,990,000
Allegheny County Hospital Development
Authority RB (Allegheny General Hospital
Project) Series 1995B DN
3.45%** 04/02/97 13,900 13,900,000
3.45%** 04/07/97 1,500 1,500,000
Allegheny County Hospital Development
Authority RB (St. Francis Medical
Center Project) Series 1996A DN
3.60%** 04/07/97 5,000 5,000,000
Allegheny County IDA PCRB (Duquesne
Light Co. Project) Series 1990A MB
3.70% 02/05/98 5,000 5,000,000
Allegheny County IDA Refunding PCRB
(Duquesne Light Co. Project)
Series 1992A MB
3.65% 10/30/97 8,000 8,000,000
Allentown Sewer Authority RB
Series 1997 MB
3.50% 05/15/97 195 195,000
Allentown Water Authority Refunding
RB Series 1997 MB
3.50% 05/15/97 515 515,000
Allentown Redevelopment Authority Multi-
Family Housing Refunding RB (Arcadia
Associates Project) Series 1990 DN
3.80%** 04/07/97 6,000 6,000,000
Beaver County IDA PCRB (Duquesne
Light Co.; Beaver Valley Project)
Series 1993A MB
3.50% 07/16/97 9,400 9,400,000
Beaver County IDA PCRB (Duquesne
Light Co.; Beaver Valley Project)
Series 1997 MB
3.45% 05/21/97 1,000 1,000,000
Beaver County IDA PCRB (Duquesne
Light Co.; Beaver Valley Project)
Series 1993A MB
3.55% 08/07/97 1,000 1,000,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co.; Beaver Valley
Project) Series 1990A DN
3.40%** 04/07/97 3,300 3,300,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co.; Beaver Valley
Project) Series 1990C MB
3.45% 07/16/97 2,500 2,500,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co.; Mansfield Project)
Series 1990B DN
3.40%** 04/07/97 3,000 3,000,000
Beaver County IDA Refunding PCRB
(Toledo Edison Project)
Series 1992E TECP
3.70% 12/04/97 10,000 10,000,000
Beaver County IDA Refunding PCRB
(Atlantic Richfield Co. Project)
Series 1995 DN
3.45%** 04/07/97 350 350,000
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Bedford County IDA IDRB (Sepa, Inc.
Facility Project) Series 1985 DN
3.65%** 04/07/97 $ 3,000 $ 3,000,000
Bentworth School District GO
Series 1997 MB
3.75% 03/15/98 310 310,000
Berks County IDA Commercial Development
Refunding RB (Sixth and Penn Street
Project) Series 1988 DN
3.45%** 04/07/97 200 200,000
Berks County IDA Manufacturing Facilities
RB (Grafika Commercial Printing, Inc.
Project) Series 1995 DN
3.85%** 04/07/97 1,130 1,130,000
Berks County IDA RB (Lutheran Home at
Topton Project) Series 1995 DN
3.55%** 04/07/97 1,900 1,900,000
Berks County IDA RB (Richard J. Caron
Foundation Project) Series 1996 DN
3.55%** 04/02/97 2,000 2,000,000
Berks County IDA IDRB (Citizens Utilities
Co. Project) MB
3.40% 05/16/97 4,200 4,200,000
Bucks County IDA Environmental
Improvement RB (USX Corp. Project)
Series 1995 MB
3.45% 08/05/97 1,360 1,360,000
Bucks County IDA RB (SHV Real Estate,
Inc. Project) Series 1985 DN
3.35%** 04/07/97 2,200 2,200,000
Bucks County IDA Refunding RB
(Sundstrand Corp. Project)
Series 1991 DN
3.55%** 04/07/97 1,505 1,505,000
Cambria County IDA Resource Recovery
RB (Cambria Cogen Co. Project)
Series 1989V-1 DN
3.55%** 04/07/97 24,500 24,500,000
Cambria County IDA Resource Recovery
RB (Cambria Cogen Co. Project)
Series 1989V-2 DN
3.55%** 04/07/97 4,300 4,300,000
Cambria County IDA Resource Recovery
RB (Cambria Cogen Co. Project)
Series 1991V-1 DN
3.55%** 04/07/97 9,000 9,000,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1990A MB
3.55% 05/15/97 1,055 1,055,000
3.60% 05/15/97 1,000 1,000,000
3.50% 08/07/97 6,000 6,000,000
3.55% 08/07/97 4,000 4,000,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1990B MB
3.55% 05/15/97 1,300 1,300,000
3.50% 08/07/97 400 400,000
3.55% 08/07/97 4,325 4,325,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1991 MB
3.55% 07/16/97 300 300,000
3.50% 08/07/97 2,910 2,910,000
3.55% 08/07/97 1,625 1,625,000
See accompanying notes to financial statements.
17
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1992A MB
3.55% 05/15/97 $ 5,000 $ 5,000,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1997A MB
3.50% 07/16/97 3,200 3,200,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners
Project) MB
3.45% 07/25/97 1,545 1,545,000
Commonwealth of Pennsylvania GO
BAN 1997A TECP
3.30% 04/22/97 2,000 2,000,000
3.30% 04/24/97 2,000 2,000,000
3.40% 05/01/97 5,500 5,500,000
Cumberland County IDA IDRB (Lane
Enterprises, Inc. Project)
Series 1994 DN
3.85%** 04/07/97 830 830,000
Cumberland County Municipal Authority
RB (Presbyterian Homes Project)
Series 1993A DN
3.50%** 04/07/97 6,000 6,000,000
Delaware County IDA Refunding PCRB
(PECO Energy Co. Project)
Series 1988A MB
3.45% 05/08/97 2,750 2,750,000
Delaware County IDA Resource Recovery
RB Series 1993-G MB
3.62% 12/01/97 5,000 5,000,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984A DN
3.45%** 04/07/97 100 100,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984B DN
3.45%** 04/07/97 7,500 7,500,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984C DN
3.45%** 04/07/97 7,700 7,700,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984D DN
3.45%** 04/07/97 1,300 1,300,000
Delaware County IDA PCRB PECO
Energy Co. Project) MB
3.20% 04/08/97 3,600 3,600,000
Elk County IDA IDRB (Williamette
Industries, Inc., Project)
Series 1992 DN
3.50%** 04/07/97 5,000 5,000,000
Emmaus General Authority RB Pooled
Loan Series 1989H-6 DN
3.60%** 04/07/97 1,600 1,600,000
Emmaus General Authority RB Pooled
Loan Series 1996 DN
3.65%** 04/07/97 3,000 3,000,000
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1984 DN
3.55%** 04/07/97 800 800,000
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1985A DN
3.35%** 04/07/97 $ 1,100 $ 1,100,000
Lehigh County Sewer Authority RB
Series 1985B DN
3.35%** 04/07/97 1,970 1,970,000
Lehigh County Water Authority RB
Series 1984 DN
3.35%** 04/07/97 5,645 5,645,000
Littlestown IDA Refunding RB
(Hanover House Industries Project)
Series 1987 DN
3.50%** 04/07/97 8,000 8,000,000
Montgomery County GO Series 1996 DN
3.55%** 04/07/97 2,000 2,000,000
Montgomery County Higher Education
and Health Authority Hospital RB
Series 1988 DN
3.35%** 04/07/97 3,200 3,200,000
Montgomery County IDA IDRB (Three
Valley Square Associates Project)
Series 1987 DN
3.45%** 04/07/97 2,800 2,800,000
Montgomery County IDA Manufacturing
Facilities RB (H.P. Cadwallander, Inc.
Project) Series 1995 DN
3.85%** 04/07/97 900 900,000
Montgomery County IDA RB (Apple Fresh
Foods Ltd Project) Series 1996 DN
3.20%** 04/07/97 1,000 1,000,000
Montgomery County IDA RB (One Valley
Square Project) Series 1985 DN
3.45%** 04/07/97 1,800 1,800,000
Montgomery County IDA RB (PECO
Energy Project) Series 1994A MB
3.45% 06/02/97 1,200 1,200,000
Montgomery County IDA Economic
Development RB (Palmer International
Inc. Project) Series 1997 DN
3.50%** 04/07/97 1,000 1,000,000
Montgomery County IDA MB
3.20% 04/03/97 5,000 5,000,000
3.40% 05/21/97 3,500 3,500,000
Northampton County IDA IDRB (Citizens
Utilities Project) Series 1991 MB
3.45% 04/01/97 2,000 2,000,000
3.35% 05/16/97 1,000 1,000,000
3.40% 05/16/97 1,000 1,000,000
Northampton County IDA IDRB (Citizens
Utilities Project) Series 1996 DN
3.50%** 04/07/97 8,375 8,375,000
Northeastern Hospital and Education
Authority Health Care RB (Wyoming
Valley Health Care Project)
Series 1994A DN
3.45%** 04/07/97 12,000 12,000,000
Northeastern Hospital and Education
Authority RB (Allhealth Pooled
Financing Program) Series 1996 DN
3.70%** 04/07/97 12,000 12,000,000
Northumberland County IDA RB (Furman
Farms, Inc. Project) Series 1995A DN
3.85%** 04/07/97 1,225 1,225,000
See accompanying notes to financial statements.
18
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Northumberland County IDA Resource
RB (Foster Wheeler Mt. Carmel Project)
Series 1987A DN
3.50%** 04/07/97 $ 4,000 $ 4,000,000
Northumberland County IDA Resource
Recovery RB (Foster Wheeler Mt.
Carmel Project) Series 1987B DN
3.50%** 04/07/97 590 590,000
Penn Hills Township GO Series 1987A MB
7.50% 06/01/97 1,505 1,514,294
Pennsylvania Economic Development
Financing Authority RB (Wendt
Dunnington Co. Project) Series 1995 DN
3.55%** 04/07/97 1,165 1,165,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg Project)
Series 1986 DN
3.45%** 04/07/97 11,860 11,860,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg Project)
Series 1988 DN
3.45%** 04/07/97 2,900 2,900,000
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986A DN
3.50%** 04/02/97 7,750 7,750,000
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986C DN
3.50%** 04/07/97 3,800 3,800,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1988A DN
3.50%** 04/07/97 1,300 1,300,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1988C DN
3.50%** 04/07/97 1,700 1,700,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1988E DN
3.50%** 04/07/97 100 100,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB
Series 1994A DN
3.50%** 04/02/97 20,350 20,350,000
Pennsylvania Higher Educational Facilities
Authority College and University RB
(Pennsylvania College of Optometry
Project) Series 1996 DN
3.40%** 04/07/97 6,800 6,800,000
Pennsylvania Higher Educational Facilities
Authority RB (University of Pennsylvania
Health Services Project)
Series 1996C DN
3.40%** 04/07/97 8,400 8,400,000
Pennsylvania State Series 1996 TRAN
4.50% 06/30/97 25,150 25,205,432
Philadelphia Gas Works TECP
3.45% 06/02/97 2,300 2,300,000
Philadelphia GO Series 1990 TECP
3.50% 04/15/97 10,000 10,000,000
Philadelphia GO Series 1996A TRAN
4.50% 06/30/97 2,000 2,003,656
Par
Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Philadelphia IDA RB (30th Street Station
Project) Series 1987 DN
4.05%** 04/07/97 $ 6,900 $ 6,900,000
Philadelphia Redevelopment Authority
Multi-Family Housing RB (Franklin
Town Towers Project) Series 1985 DN
3.55%** 04/07/97 3,800 3,800,000
Pottstown Borough Sewer Authority RB
Series 1996 MB
4.00% 11/01/97 660 661,300
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985F DN
3.40%** 04/07/97 1,900 1,900,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985H DN
3.40%** 04/07/97 890 890,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985K DN
3.40%** 04/07/97 200 200,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985I DN
3.40%** 04/07/97 200 200,000
Sayre Health Care Facilities Authority RB
(VHA Capital Financing Project)
Series 1985L DN
3.40%** 04/07/97 300 300,000
Sayre Health Care Facilities Authority RB
(VHA Capital Financing Project)
Series 1985M DN
3.40%** 04/07/97 900 900,000
Sayre Health Care Facility Authority RB
(VHA Capital Financing Project)
Series 1985A DN
3.40%** 04/07/97 100 100,000
Sayre Health Care Facility Authority RB
(VHA Capital Financing Project)
Series 1985J DN
3.40%** 04/07/97 6,300 6,300,000
Schuylkill County IDA (Craftex Mills
Project) DN
3.85%** 04/07/97 2,250 2,250,000
Schuylkill County IDA IDRB (Kaytee
Products, Inc. Project) Series 1995 DN
3.65%** 04/07/97 4,000 4,000,000
Schuylkill County IDA Resource
Recovery RB (Gilberton Power Project)
Series 1985 DN
3.45%** 04/07/97 10,000 10,000,000
Schuylkill County IDA Resource Recovery
RB (Northeastern Power Co. Project)
Series 1986B DN
3.95%** 04/01/97 19,800 19,800,000
Schuylkill County IDA Resource Recovery
RB (Westwood Energy Property Project)
Series 1985 DN
4.00%** 04/01/97 4,400 4,400,000
Scranton-Lackawana Health & Welfare
Authority RB (Mercy Health System
Project) Series 1996-A DN
3.45%** 04/07/97 3,400 3,400,000
See accompanying notes to financial statements.
19
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Selinsgrove Area School District GO
Series 1996 TRAN
4.35% 06/30/97 $ 1,185 $ 1,185,841
University of Pittsburgh Higher Education
RB (University Capital Project)
Series 1989A DN
3.20%** 04/07/97 500 500,000
Venango IDA Resource Recovery RB
(Scrubgrass Project) Series 1990A MB
3.10% 04/18/97 3,100 3,100,000
3.55% 07/16/97 300 300,000
3.45% 07/25/97 300 300,000
Venango IDA Resource Recovery RB
(Scrubgrass Project) Series 1990B MB
3.55% 05/15/97 3,715 3,715,000
3.55% 07/16/97 1,650 1,650,000
3.45% 07/25/97 2,300 2,300,000
3.55% 08/07/97 5,285 5,285,000
3.60% 08/15/97 2,200 2,200,000
Venango IDA Resource Recovery RB
(Scrubgrass Project) Series 1993 MB
3.10% 04/18/97 1,300 1,300,000
3.55% 07/15/97 1,210 1,210,000
3.55% 07/16/97 7,175 7,175,000
Washington County Authority Lease RB
Series 1985 DN
3.45%** 04/02/97 14,600 14,600,000
Williamsport Area School District GO
Series 1996 TRAN
4.25% 06/30/97 3,000 3,001,416
York County IDA IDRB (Allied Signal, Inc.
Project) Series 1993 DN
3.65%** 04/07/97 1,000 1,000,000
York County IDA (Public Service Electric
and Gas Co. Project) Series 1995A DN
3.30%** 04/02/97 2,600 2,600,000
------------
526,471,939
------------
PUERTO RICO--5.0%
Puerto Rico Government Development
Bank Series 1996 TECP
3.50% 05/09/97 5,000 5,000,000
Puerto Rico Government Development
Bank TECP
3.25% 04/01/97 9,000 9,000,000
3.25% 04/08/97 9,200 9,200,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Ana G. Mendez
Foundation Project) Series 1985 DN
3.30%** 04/07/97 400 400,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Inter-American
University Project) Series 1985 MB
3.15% 05/16/97 2,400 2,400,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Reynolds Metals
Co. Project) Series 1983 MB
3.80% 09/01/97 2,000 2,000,405
------------
28,000,405
------------
Value
---------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $554,472,344*) 99.9% $554,472,344
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 333,255
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 225,095,075
Institutional shares, 241,279,196
Service shares and 88,443,767
Investor A shares outstanding) 100.0% $554,805,599
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($554,805,599 / 554,818,038) $1.00
=====
- -------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1997, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
20
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS--99.8%
VIRGINIA--82.5%
Alexandria IDA Resource Recovery RB
(Alexandria Arlington Waste-to-Energy
Facility Project) Series 1986A DN
4.05%** 04/01/97 $ 400 $ 400,000
Alexandria Redevelopment and Housing
Authority Multi-Family Housing RB
(Buckingham Village Apartments Project)
Series 1996B DN
3.70%** 04/07/97 2,000 2,000,000
Arlington County GO Series 1991 MB
5.70% 12/01/97 650 658,196
Bedford County IDA IDRB (Nekoosa
Packaging Corp. Project)
Series 1997 DN
3.50%** 04/03/97 2,000 2,000,000
Brunswick County IDA Exempt Facility RB
(Aegis Waste Solutions, Inc. Project)
Series 1996 DN
3.60%** 04/07/97 1,000 1,000,000
Capital Region Airport Commission Airport
RB (Richmond International Airport
Project) Series 1995C DN
3.55%** 04/07/97 2,000 2,000,000
Charles County IDA Exempt Facility RB
(Chambers Development of Virginia,
Inc. Project) Series 1989 DN
3.65%** 04/07/97 1,100 1,100,000
Charles County IDA Solid Waste Disposal
Facilities RB (Chambers Development
of Virginia, Inc. Project)
Series 1996 DN
3.65%** 04/07/97 1,500 1,500,000
Chesapeake GO Prerefunded
Series 1988 MB
6.80% 07/01/97 450 462,681
Chesterfield County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1985 MB
3.60% 05/09/97 500 500,000
Commonwealth of Virginia TECP
Series 1997
3.45% 05/15/97 500 500,000
Fairfax County Economic Development
Authority RB (Foreman Development
Associates Project) Series 1996 DN
3.60%** 04/07/97 2,665 2,665,000
Fairfax County GO Series 1993C MB
4.00% 05/01/97 1,000 1,000,318
Fairfax County IDA RB (Fairfax Hospital
System Project) Series 1988A DN
3.50%** 04/02/97 1,100 1,100,000
Fairfax County IDA RB (Fairfax Hospital
System Project) Series 1988C DN
3.50%** 04/02/97 300 300,000
Greensville County IDA IDRB (Perdue
Farms, Inc. Project) Series 1986 DN
3.55%** 04/01/97 1,600 1,600,000
Halifax County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1992 MB
3.45% 05/22/97 2,000 2,000,000
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
Hampton Redevelopment & Housing
Authority Multi-Family Housing Refunding
RB (Avalon at Hampton Project)
Series 1996A DN
3.35%** 04/02/97 $ 2,560 $ 2,560,000
Hampton Roads Regional Jail Authority
Regional Jail Facility RB
Series 1996B DN
3.50%** 04/07/97 1,700 1,700,000
King George County IDA Exempt Facility
RB (Birchwood Power Partners,
L.P. Project) Series 1995 DN
3.90%** 04/01/97 600 600,000
King George County IDA Solid Waste
Disposal Facility RB (Garnet of
Virginia, Inc. Project) Series 1996 DN
3.50%** 04/03/97 1,500 1,500,000
Louden County IDA Residential Care
Facility RB (Falcons Landing Project)
Series 1994B DN
4.10%** 04/01/97 2,500 2,500,000
Louisa IDA PCRB (Virginia Electric &
Power Co. Project) Series 1984 MB
3.40% 04/25/97 1,000 1,000,000
Louisa IDA PCRB (Virginia Electric &
Power Co. Project) Series 1985 MB
3.15% 04/18/97 500 500,000
3.65% 05/15/97 100 100,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital Asset
Finance Program) Series 1985B DN
3.50%** 04/01/97 100 100,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital Asset
Finance Program) Series 1985C DN
3.50%** 04/07/97 200 200,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital
Asset Finance Program)
Series 1985E DN
3.50%** 04/07/97 1,800 1,800,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital Asset
Finance Program) Series 1985F DN
3.50%** 04/02/97 400 400,000
Metropolitan Washington D.C. Airports
Authority, Virginia Passenger
Facility TECP
3.50% 04/15/97 3,000 3,000,000
3.70% 09/26/97 1,000 1,000,000
Peninsula Ports Authority of Virginia Port
Facility Refunding RB (CSX
Transportation, Inc. Project)
Series 1992 MB
3.50% 04/25/97 1,000 1,000,000
Prince William County IDA PCRB
(Virginia Electric & Power Co. Project)
Series 1986 MB
3.60% 05/09/97 300 300,000
Prince William County IDA RB (Colonial
Investments Facility Project)
Series 1996 DN
3.60%** 04/02/97 3,295 3,295,000
See accompanying notes to financial statements.
21
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 1997 (UNAUDITED) Maturity (000) Value
-------- -------- ---------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
Richmond IDA RB (Halifax Paper Board
Co. Project) Series 1990 DN
3.65%** 04/07/97 $ 510 $ 510,000
Roanoke IDA Hospital RB (Carillon Health
System Project) Series 1995D DN
3.45%** 04/07/97 400 400,000
Rockingham County IDA Higher Education
Facilities RB (Eastern Mennonite
University Project) Series 1995 DN
3.55%** 04/01/97 1,400 1,400,000
South Hill IDA IDRB (South Hill Veneers
Inc. Project) Series 1987 DN
3.60%** 04/07/97 300 300,000
Virginia Housing Development Authority
Housing RB (AHC Service Corp.
Woodbury Park Project)
Series 1987A DN
3.55%** 04/07/97 1,070 1,070,000
Virginia Small Business Financing Authority
IDRB (Coastal Development Group Project)
Series 1989 DN
3.65%** 04/07/97 195 195,000
Virginia State Transportation Board
(U.S. Route 28 Project) Series 1988 MB
7.80% 03/01/98 1,750 1,846,019
Washington County IDA IDRB (MMFG
Project) Series 1996 DN
3.55%** 04/02/97 1,825 1,825,000
York County IDA PCRB (Virginia Electric
& Power Co. Project) Series 1985 MB
3.60% 05/09/97 200 200,000
---------------
50,087,214
---------------
PUERTO RICO--17.3%
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
3.10%** 04/07/97 700 700,000
Puerto Rico Government Development
Bank TECP
3.50% 05/09/97 3,000 3,000,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Ana G. Mendez
Foundation Project) Series 1985 DN
3.30%** 04/07/97 1,200 1,200,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Inter-American
University Project) Series 1988 MB
3.10% 04/01/97 3,500 3,500,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Key
Pharmaceuticals Project)
Series 1983 MB
3.75% 12/01/97 1,500 1,500,000
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Authority RB (Reynolds
Metals Co. Project) Series 1983 MB
3.80% 09/01/97 600 600,000
---------------
10,500,000
---------------
Value
-------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $60,587,214*) 99.8% 60,587,214
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.2% 142,397
------ -----------
NET ASSETS (Equivalent to $1.00 per
share based on 46,167,129 Institutional
shares and 14,562,653 Service shares
outstanding) 100.0% $60,729,611
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL AND SERVICE
($60,729,611 / 60,729,782) $1.00
=====
- -------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1997, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
22
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
New Jersey
U.S. Treasury Municipal Municipal
Money Market Money Market Money Market Money Market
FOR THE SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED) Portfolio Portfolio Portfolio Portfolio
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................ $ 70,138,936 $ 28,224,773 $ 6,370,628 $ 1,890,968
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fee ................. 5,275,737 2,353,861 810,007 248,454
Administration fee ...................... 1,905,379 886,165 324,003 99,382
Custodian fee ........................... 203,496 90,952 40,841 14,910
Transfer agent fee ...................... 409,360 171,084 72,165 27,067
Service fees ............................ 2,422,507 1,300,010 467,857 128,187
Distribution fees ....................... 396,510 32,930 4,343 54,979
Legal and audit ......................... 128,510 41,522 11,084 13,053
Printing ................................ 60,222 29,590 7,899 8,183
Registration fees and expenses .......... 24,863 19,891 19,891 7,138
Organization ............................ -- -- -- 3,498
Trustees' fees and officer's salary ..... 26,410 12,975 3,463 972
Other ................................... 58,138 28,777 4,465 2,217
------------ ------------ ------------ ------------
10,911,132 4,967,757 1,766,018 608,040
Less fees voluntarily waived and
expenses reimbursed ................... (4,371,381) (2,103,046) (771,076) (256,743)
------------ ------------ ------------ ------------
Total expenses ........................ 6,539,751 2,864,711 994,942 351,297
------------ ------------ ------------ ------------
Net investment income ................... 63,599,185 25,360,062 5,375,686 1,539,671
------------ ------------ ------------ ------------
Net realized gain (loss)
on investments ........................ 121 62,873 -- --
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations ............................ $63,599,306 $25,422,935 $5,375,686 $1,539,671
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
<TABLE>
<CAPTION>
North Carolina Ohio Pennsylvania Virginia
Municipal Municipal Municipal Municipal
Money Market Money Market Money Market Money Market
FOR THE SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED) Portfolio Portfolio Portfolio Portfolio
-------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................ $2,594,342 $2,045,322 $ 9,633,222 $ 948,147
---------- ---------- ----------- ---------
EXPENSES:
Investment advisory fee ................. 334,056 258,115 1,243,166 121,589
Administration fee ...................... 133,623 103,246 497,267 48,635
Custodian fee ........................... 19,290 15,478 53,830 9,235
Transfer agent fee ...................... 32,268 21,778 91,337 18,050
Service fees ............................ 10,525 76,997 362,666 21,882
Distribution fees ....................... 299 19,491 210,227 --
Legal and audit ......................... 6,846 5,471 19,179 4,408
Printing ................................ 3,107 2,129 12,604 1,371
Registration fees and expenses .......... 7,002 6,975 6,033 7,399
Organization ............................ 2,830 2,357 2,270 3,239
Trustees' fees and officer's salary ..... 1,363 934 5,527 601
Other ................................... 1,816 1,425 7,063 1,007
---------- ---------- ----------- ---------
553,025 514,396 2,511,169 237,416
Less fees voluntarily waived and
expenses reimbursed ................... (356,562) (248,244) (1,138,610) (175,004)
---------- ---------- ----------- ---------
Total expenses ........................ 196,463 266,152 1,372,559 62,412
---------- ---------- ----------- ---------
Net investment income ................... 2,397,879 1,779,170 8,260,663 885,735
---------- ---------- ----------- ---------
Net realized gain (loss)
on investments ........................ -- -- (825) --
---------- ---------- ----------- ---------
Net increase in net assets resulting from
operations ............................ $2,397,879 $1,779,170 $ 8,259,838 $ 885,735
========== ========== =========== =========
</TABLE>
25
<PAGE>
[GRAPHIC OMITTED] 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
3/31/97 9/30/96 3/31/97 9/30/96
------------ -------------- -------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ...................... $ 63,599,185 $ 120,493,971 $ 25,360,062 $ 57,098,743
Net realized gain (loss) on investments .... 121 143,906 62,873 (262,952)
-------------- -------------- -------------- --------------
Net increase in net assets resulting
from operations ............................ 63,599,306 120,637,877 25,422,935 56,835,791
-------------- -------------- -------------- --------------
Distributions to shareholders from:
Net investment income:
Institutional Shares ....................... (19,161,249) (35,226,973) (4,294,307) (8,587,203)
Service Shares ............................. (39,659,929) (80,301,220) (20,686,841) (48,192,461)
Investor A Shares .......................... (4,770,227) (4,962,819) (378,914) (319,079)
Investor B Shares .......................... (1,469) (2,959) -- --
Investor C Shares .......................... (6,311) -- -- --
-------------- -------------- -------------- --------------
Total distribution from net
investment income ......................... (63,599,185) (120,493,971) (25,360,062) (57,098,743)
-------------- -------------- -------------- --------------
Distributions to shareholder from:
Net realized gains:
Institutional Shares .......................... (9,442) -- -- (2,194)
Service Shares ................................ (21,525) -- -- (8,923)
Investor A Shares ............................. (2,469) -- -- (28)
Investor B Shares ............................. -- -- -- --
Investor C Shares ............................. (12) -- -- --
-------------- -------------- -------------- --------------
Total distribution from net
realized gains ............................ (33,448) -- -- (11,145)
-------------- -------------- -------------- --------------
Total distributions to shareholders ......... (63,632,633) (120,493,971) (25,360,062) (57,109,888)
-------------- -------------- -------------- --------------
Capital share transactions ...................... 486,353,605 466,501,738 (93,222,967) 460,767,915
-------------- -------------- -------------- --------------
Total increase (decrease) in
net assets ................................ 486,320,278 466,645,644 (93,160,094) 460,493,818
Net assets:
Beginning of period ........................... 2,325,031,390 1,858,385,746 1,133,277,866 672,784,048
-------------- -------------- -------------- --------------
End of period ................................. $2,811,351,668 $2,325,031,390 $1,040,117,772 $1,133,277,866
============== ============== ============== ==============
</TABLE>
26
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
<TABLE>
<CAPTION>
Municipal New Jersey Municipal
Money Market Portfolio Money Market Portfolio
--------------------------- --------------------------------------------
For the For the
Six Months For the Six Months For the For the
Ended Year Ended Ended Period 2/1/96 Period 3/1/95
3/31/97 9/30/96 3/31/97 Through 9/30/96 Through 1/31/96
------------- ------------ ------------ --------------- ---------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ....................... $ 5,375,686 $ 10,664,825 $ 1,539,671 $ 1,515,951 $ 1,406,663
Net realized gain (loss) on investments ..... -- 39,648 -- 529 (285)
------------ ------------ ------------ ----------- -----------
Net increase in net assets resulting
from operations ............................. 5,375,686 10,704,473 1,539,671 1,516,480 1,406,378
------------ ------------ ------------ ----------- -----------
Distributions to shareholders from:
Net investment income:
Institutional Shares ........................ (744,317) (1,608,121) (31,930) (32,970) (5,649)
Service Shares .............................. (4,601,465) (9,049,712) (1,211,997) (1,161,646) (1,388,324)*
Investor A Shares ........................... (29,904) (6,992) (295,717) (321,335) (22,768)
Investor B Shares ........................... -- -- (27) -- --
Investor C Shares ........................... -- -- -- -- --
------------ ------------ ------------ ----------- -----------
Total distribution from net
investment income ......................... (5,375,686) (10,664,825) (1,539,671) (1,515,951) (1,416,741)
------------ ------------ ------------ ----------- -----------
Distributions to shareholder from:
Net realized gains:
Institutional Shares .......................... -- -- -- -- --
Service Shares ................................ -- -- -- -- --
Investor A Shares ............................. -- -- -- -- --
Investor B Shares ............................. -- -- -- -- --
Investor C Shares ............................. -- -- -- -- --
------------ ------------ ------------ ----------- -----------
Total distribution from net
realized gains ............................ -- -- -- -- --
------------ ------------ ------------ ----------- -----------
Total distributions to shareholders ......... (5,375,686 (10,664,825) (1,539,671) (1,515,951) (1,416,741)
------------ ------------ ------------ ----------- -----------
Capital share transactions ...................... 99,420,795 (12,063,434) 36,131,668 3,251,806 39,215,073
------------ ------------ ------------ ----------- -----------
Total increase (decrease) in
net assets ................................ 99,420,795 (12,023,786) 36,131,668 3,252,335 39,204,710
Net assets:
Beginning of period ........................... 307,403,502 319,427,288 86,067,045 82,814,710 43,610,000
------------ ------------ ------------ ----------- -----------
End of period ................................. $406,824,297 $307,403,502 $122,198,713 $86,067,045 $82,814,710
============ ============ ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
North Carolina Municipal Ohio Municipal Pennsylvania Municipal
Money Market Portfolio Money Market Portfolio Money Market Portfolio
-------------------------- ------------------------- ---------------------------
For the For the For the
Six Months For the Six Months For the Six Months For the
Ended Year Ended Ended Year Ended Ended Year Ended
3/31/97 9/30/96 3/31/97 9/30/96 3/31/97 9/30/96
------------ ------------- ------------ ------------ ------------ -------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ................... $ 2,397,879 $ 3,151,297 $ 1,779,170 $ 2,352,595 $ 8,260,663 $ 15,949,886
Net realized gain (loss) on
investments ............................. -- (124) -- (5,840) (825) (1,626)
------------ ------------ ------------ ----------- ------------ ------------
Net increase in net assets resulting
from operations ......................... 2,397,879 3,151,173 1,779,170 2,346,755 8,259,838 15,948,260
------------ ------------ ------------ ----------- ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Shares .................... (2,292,451) (2,984,694) (882,144) (821,771) (3,529,835) (7,707,679)
Service Shares .......................... (103,365) (164,443) (764,220) (1,439,522) (3,505,628) (6,766,857)
Investor A Shares ....................... (2,063) (2,160) (132,806) (91,302) (1,225,200) (1,475,350)
Investor B Shares ....................... -- -- -- -- -- --
Investor C Shares ....................... -- -- -- -- -- --
------------ ------------ ------------ ----------- ------------ ------------
Total distribution from net
investment income ..................... (2,397,879) (3,151,297) (1,779,170) (2,352,595) (8,260,663) (15,949,886)
------------ ------------ ------------ ----------- ------------ ------------
Distributions to shareholder from:
Net realized gains:
Institutional Shares ...................... -- -- -- -- -- --
Service Shares ............................ -- -- -- -- -- --
Investor A Shares ......................... -- -- -- -- -- --
Investor B Shares ......................... -- -- -- -- -- --
Investor C Shares ......................... -- -- -- -- -- --
------------ ------------ ------------ ----------- ------------ ------------
Total distribution from net
realized gains ........................ -- -- -- -- -- --
------------ ------------ ------------ ----------- ------------ ------------
Total distributions to shareholders ..... (2,397,879) (3,151,297) (1,779,170) (2,352,595) (8,260,663) (15,949,886)
------------ ------------ ------------ ----------- ------------ ------------
Capital share transactions .................. 26,671,510 41,104,444 35,550,507 10,535,788 68,362,994 104,541,639
------------ ------------ ------------ ----------- ------------ ------------
Total increase (decrease) in
net assets ............................ 26,671,510 41,104,320 35,550,507 10,529,948 68,362,169 104,540,013
Net assets:
Beginning of period ....................... 119,670,846 78,566,526 84,141,119 73,611,171 486,443,430 381,903,417
------------ ------------ ------------ ----------- ------------ ------------
End of period ............................. $146,342,356 $119,670,846 $119,691,626 $84,141,119 $554,805,599 $486,443,430
============ ============ ============ =========== ============ ============
</TABLE>
Virginia Municipal
Money Market Portfolio
-------------------------
For the
Six Months For the
Ended Year Ended
3/31/97 9/30/96
------------- -----------
(Unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income ...................... $ 885,735 $ 1,407,218
Net realized gain (loss) on investments .... -- (125)
----------- ------------
Net increase in net assets resulting
from operations ............................ 885,735 1,407,093
----------- ------------
Distributions to shareholders from:
Net investment income:
Institutional Shares ....................... (662,182) (1,123,148)
Service Shares ............................. (223,553) (284,070)
Investor A Shares .......................... -- --
Investor B Shares .......................... -- --
Investor C Shares .......................... -- --
----------- ------------
Total distribution from net
investment income ........................ (885,735) (1,407,218)
----------- ------------
Distributions to shareholder from:
Net realized gains:
Institutional Shares ......................... -- --
Service Shares ............................... -- --
Investor A Shares ............................ -- --
Investor B Shares ............................ -- --
Investor C Shares ............................ -- --
----------- ------------
Total distribution from net
realized gains ........................... -- --
----------- ------------
Total distributions to shareholders ........ (885,735) (1,407,218)
----------- ------------
Capital share transactions ..................... 7,208,989 28,291,131
----------- ------------
Total increase (decrease) in
net assets ............................... 7,208,989 28,291,006
Net assets:
Beginning of period .......................... 53,520,622 25,229,616
----------- ------------
End of period ................................ $60,729,611 $ 53,520,622
=========== ============
- ------------------
* Service Shares includes all activity of the prior class of shares for all
periods before January 13, 1996, the date of the merger.
See accompanying notes to financial statements.
27
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
====================================================================================================================================
- ----------------------
MONEY MARKET PORTFOLIO
- ----------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 $1.00 $0.0260 $(0.0260) $0.00 $1.00 2.63% $ 924,274
9/30/96 1.00 0.0533 (0.0533) 0.00 1.00 5.46 587,730
9/30/95 1.00 0.0564 (0.0564) 0.00 1.00 5.79 654,157
9/30/94 1.00 0.0359 (0.0359) 0.00 1.00 3.64 502,972
8/2/931 through 9/30/93 1.00 0.0054 (0.0054) 0.00 1.00 0.54 435,586
SERVICE CLASS
10/1/96 through 3/31/975 $1.00 $0.0245 $(0.0245) $0.00 $1.00 2.48% $1,657,964
9/30/96 1.00 0.0503 (0.0503) 0.00 1.00 5.15 1,575,064
9/30/95 1.00 0.0534 (0.0534) 0.00 1.00 5.48 1,194,017
9/30/94 1.00 0.0333 (0.0333) 0.00 1.00 3.37 575,948
9/30/93 1.00 0.0274 (0.0274) 0.00 1.00 2.77 415,328
9/30/92 1.00 0.0391 (0.0391) 0.00 1.00 4.05 838,012
INVESTOR A CLASS
10/1/96 through 3/31/975 $1.00 $0.0241 $(0.0241) $0.00 $1.00 2.44% $ 228,818
9/30/96 1.00 $0.0485 (0.0485) 0.00 1.00 4.96 162,099
9/30/95 1.00 0.0511 (0.0511) 0.00 1.00 5.23 10,185
9/30/94 1.00 0.0308 (0.0308) 0.00 1.00 3.12 4,342
1/13/931 through 9/30/93 1.00 0.0188 (0.0188) 0.00 1.00 1.89 49
INVESTOR B CLASS
10/1/96 through 3/31/975 $1.00 $0.0209 $(0.0209) $0.00 $1.00 2.10% $ 295
9/30/96 1.00 0.0426 (0.0426) 0.00 1.00 4.34 138
9/15/951 through 9/30/95 1.00 0.0020 (0.0020) 0.00 1.00 0.20 27
INVESTOR C CLASS
10/17/961 through 3/31/975 $1.00 $0.0175 $(0.0175) $0.00 $1.00 1.77% $ 1
- ------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
- ------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 $1.00 $0.0253 $(0.0253) $0.00 $1.00 2.56% $ 162,695
9/30/96 1.00 0.0519 (0.0519) 0.00 1.00 5.32 167,193
9/30/95 1.00 0.0555 (0.0555) 0.00 1.00 5.69 120,540
9/30/94 1.00 0.0357 (0.0357) 0.00 1.00 3.63 37,519
8/2/931 through 9/30/93 1.00 0.0049 (0.0049) 0.00 1.00 0.49 13,513
SERVICE CLASS
10/1/96 through 3/31/975 $1.00 $0.0238 $(0.0238) $0.00 $1.00 2.40% $ 856,476
9/30/96 1.00 0.0489 (0.0489) 0.00 1.00 5.00 955,454
9/30/95 1.00 0.0525 (0.0525) 0.00 1.00 5.38 550,959
9/30/94 1.00 0.0331 (0.0331) 0.00 1.00 3.36 372,883
9/30/93 1.00 0.0269 (0.0269) 0.00 1.00 2.72 185,400
9/30/92 1.00 0.0394 (0.0394) 0.00 1.00 4.01 160,269
INVESTOR A CLASS
10/1/96 through 3/31/975 $1.00 $0.0229 $(0.0229) $0.00 $1.00 2.32% $ 20,948
9/30/96 1.00 0.0467 (0.0467) 0.00 1.00 4.77 10,630
9/30/95 1.00 0.0501 (0.0501) 0.00 1.00 5.13 1,285
9/30/94 1.00 0.0309 (0.0309) 0.00 1.00 3.11 1,656
1/14/931 through 9/30/93 1.00 0.0183 (0.0183) 0.00 1.00 1.85 50
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 $1.00 $0.0162 $(0.0162) $0.00 $1.00 1.63% $ 57,538
9/30/96 1.00 0.0339 (0.0339) 0.00 1.00 3.41 43,936
9/30/95 1.00 0.0364 (0.0364) 0.00 1.00 3.70 53,778
9/30/94 1.00 0.0246 (0.0246) 0.00 1.00 2.48 30,608
8/2/931 through 9/30/93 1.00 0.0040 (0.0040) 0.00 1.00 0.40 39,148
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
ASSETS WAIVERS) ASSETS WAIVERS)
=========================================================================================================
- ----------------------
MONEY MARKET PORTFOLIO
- ----------------------
INSTITUTIONAL CLASS
<S> <C> <C> <C> <C>
10/1/96 through 3/31/975 0.29%2 0.64%2 5.21%2 4.87%2
9/30/96 0.29 0.65 5.34 4.98
9/30/95 0.27 0.64 5.66 5.28
9/30/94 0.25 0.66 3.64 3.23
8/2/931 through 9/30/93 0.272 0.382 3.012 2.902
SERVICE CLASS
10/1/96 through 3/31/975 0.59%2 0.94%2 4.91%2 4.57%2
9/30/96 0.59 0.95 5.00 4.64
9/30/95 0.57 0.94 5.35 4.98
9/30/94 0.51 0.92 3.35 2.95
9/30/93 0.59 0.70 2.73 2.62
9/30/92 0.61 0.66 3.86 3.81
INVESTOR A CLASS
10/1/96 through 3/31/975 0.68%2 1.02%2 4.83%2 4.49%2
9/30/96 0.74 1.10 4.81 4.45
9/30/95 0.81 1.19 5.15 4.78
9/30/94 0.75 1.16 3.39 2.98
1/13/931 through 9/30/93 0.672 0.782 2.622 2.512
INVESTOR B CLASS
10/1/96 through 3/31/975 1.36%2 1.71%2 4.15%2 3.80%2
9/30/96 1.36 1.73 4.18 3.82
9/15/951 through 9/30/95 1.342 1.722 4.582 4.202
INVESTOR C CLASS
10/17/961 through 3/31/975 1.36%2 1.85%2 4.00%2 3.66%2
- ------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
- ------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 0.29%2 0.69%2 5.07%2 4.67%2
9/30/96 0.29 0.69 5.18 4.78
9/30/95 0.27 0.69 5.64 5.22
9/30/94 0.25 0.70 3.69 3.24
8/2/931 through 9/30/93 0.252 0.382 3.012 2.882
SERVICE CLASS
10/1/96 through 3/31/975 0.59%2 0.99%2 4.77%2 4.37%2
9/30/96 0.59 0.99 4.84 4.45
9/30/95 0.57 0.98 5.27 4.85
9/30/94 0.52 0.97 3.42 2.97
9/30/93 0.60 0.73 2.68 2.55
9/30/92 0.62 0.67 3.91 3.86
INVESTOR A CLASS
10/1/96 through 3/31/975 0.76%2 1.16%2 4.60%2 4.20%2
9/30/96 0.79 1.19 4.60 4.20
9/30/95 0.80 1.21 5.03 4.62
9/30/94 0.75 1.20 3.60 3.14
1/14/931 through 9/30/93 0.652 0.782 2.572 2.442
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 0.29%2 0.72%2 3.24%2 2.81%2
9/30/96 0.29 0.73 3.37 2.93
9/30/95 0.27 0.71 3.64 3.20
9/30/94 0.25 0.73 2.48 2.01
8/2/931 through 9/30/93 0.252 0.362 2.452 2.342
</TABLE>
See accompanying notes to financial statements.
28 & 29
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
===================================================================================================================================
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------
SERVICE CLASS
<S> <C> <C> <C> <C> <C> <C> <C>
10/1/96 through 3/31/975 $1.00 $0.0147 $(0.0147) $0.00 $1.00 1.48% $345,430
9/30/96 1.00 0.0309 (0.0309) 0.00 1.00 3.10 261,617
9/30/95 1.00 0.0334 (0.0334) 0.00 1.00 3.39 265,629
9/30/94 1.00 0.0219 (0.0219) 0.00 1.00 2.20 133,358
9/30/93 1.00 0.0205 (0.0205) 0.00 1.00 2.10 93,937
9/30/92 1.00 0.0281 (0.0281) 0.00 1.00 2.85 125,152
INVESTOR A CLASS
10/1/96 through 3/31/975 $1.00 $0.0139 $(0.0139) $0.00 $1.00 1.40% $ 3,856
9/30/96 1.00 0.0288 (0.0288) 0.00 1.00 2.88 1,851
9/30/95 1.00 0.0311 (0.0311) 0.00 1.00 3.15 20
9/30/94 1.00 0.0193 (0.0193) 0.00 1.00 1.95 41
11/02/921 through 9/30/93 1.00 0.0181 (0.0181) 0.00 1.00 1.83 15
- -------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 $1.00 $0.0157 $(0.0157) $0.00 $1.00 1.58% $ 2,332
2/1/96 through 9/30/96 1.00 0.0207 (0.0207) 0.00 1.00 2.09 614
1/16/961 through 1/31/96 1.00 0.0000 (0.0000) 0.00 1.00 3.07 4,195
SERVICE CLASS
10/1/96 through 3/31/975 $1.00 $0.0141 $(0.0141) $0.00 $1.00 1.42% $ 93,940
2/1/96 through 9/30/96 1.00 0.0187 (0.0187) 0.00 1.00 1.89 68,139
3/1/95 through 1/31/96 1.00 0.0300 (0.0300) 0.00 1.00 3.23 56,958
2/28/95 1.00 0.0200 (0.0200) 0.00 1.00 2.46 43,610
2/28/94 1.00 0.0200 (0.0200) 0.00 1.00 1.79 39,408
2/28/93 1.00 0.0200 (0.0200) 0.00 1.00 2.19 38,836
7/1/911 through 2/29/92 1.00 0.0200 (0.0200) 0.00 1.00 3.53 35,005
INVESTOR A CLASS
10/1/96 through 3/31/975 $1.00 $0.0128 $(0.0128) $0.00 $1.00 1.29% $ 25,887
2/1/96 through 9/30/96 1.00 0.0175 (0.0175) 0.00 1.00 1.76 17,314
1/16/961 through 1/31/96 1.00 0.0000 (0.0000) 0.00 1.00 2.66 21,662
INVESTOR B CLASS
3/20/971 through 3/31/975 $1.00 $0.0007 $(0.0007) $0.00 $1.00 0.07% $ 40
- -----------------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 $1.00 $0.0162 $(0.0162) $0.00 $1.00 1.63% $139,695
9/30/96 1.00 0.0338 (0.0338) 0.00 1.00 3.43 112,097
9/30/95 1.00 0.0359 (0.0359) 0.00 1.00 3.65 76,673
9/30/94 1.00 0.0249 (0.0249) 0.00 1.00 2.52 69,673
5/4/931 through 9/30/93 1.00 0.0097 (0.0097) 0.00 1.00 0.97 34,135
SERVICE CLASS
10/1/96 through 3/31/975 $1.00 $0.0147 $(0.0147) $0.00 $1.00 1.48% $ 6,436
9/30/96 1.00 0.0308 (0.0308) 0.00 1.00 3.12 7,463
11/1/944 through 9/30/95 1.00 0.0305 (0.0305) 0.00 1.00 3.11 1,841
4/29/941 through 9/30/94 1.00 0.0099 (0.0099) 0.00 1.00 0.99 --3
INVESTOR A CLASS
10/1/96 through 3/31/975 $1.00 $0.0138 $(0.0138) $0.00 $1.00 1.39% $ 211
9/30/96 1.00 0.0286 (0.0286) 0.00 1.00 2.90 111
2/14/951 through 9/30/95 1.00 0.0194 (0.0194) 0.00 1.00 1.95 53
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
ASSETS WAIVERS) ASSETS WAIVERS)
=========================================================================================================
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------
SERVICE CLASS
<S> <C> <C> <C> <C>
10/1/96 through 3/31/975 0.59%2 1.02%2 2.95%2 2.52%2
9/30/96 0.59 1.03 3.08 2.64
9/30/95 0.57 1.01 3.35 2.91
9/30/94 0.51 0.99 2.18 1.71
9/30/93 0.61 0.72 2.02 1.91
9/30/92 0.63 0.68 2.78 2.73
INVESTOR A CLASS
10/1/96 through 3/31/975 0.76%2 1.19%2 2.75%2 2.33%2
9/30/96 0.77 1.21 2.80 2.36
9/30/95 0.79 1.23 3.08 2.64
9/30/94 0.75 1.23 2.05 1.58
11/02/921 through 9/30/93 0.722 0.832 2.232 2.122
- -------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 0.29%2 0.75%2 3.10%2 2.63%2
2/1/96 through 9/30/96 0.292 0.782 3.072 2.582
1/16/961 through 1/31/96 0.292 0.782 3.072 2.582
SERVICE CLASS
10/1/96 through 3/31/975 0.59%2 1.06%2 2.84%2 2.37%2
2/1/96 through 9/30/96 0.592 1.082 2.822 2.332
3/1/95 through 1/31/96 0.702 0.742 3.172 3.132
2/28/95 0.63 0.70 2.46 2.39
2/28/94 0.65 0.72 1.77 1.70
2/28/93 0.73 0.76 2.17 2.14
7/1/911 through 2/29/92 0.472 0.622 3.442 3.292
INVESTOR A CLASS
10/1/96 through 3/31/975 0.84%2 1.30%2 2.58%2 2.12%2
2/1/96 through 9/30/96 0.782 1.272 2.632 2.152
1/16/961 through 1/31/96 0.712 1.202 2.662 2.172
INVESTOR B CLASS
3/20/971 through 3/31/975 1.35%2 1.82%2 2.02%2 1.55%2
- -----------------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 0.25%2 0.73%2 3.24%2 2.76%2
9/30/96 0.25 0.74 3.33 2.84
9/30/95 0.21 0.74 3.61 3.08
9/30/94 0.10 0.76 2.53 1.87
5/4/931 through 9/30/93 0.102 0.812 2.352 1.642
SERVICE CLASS
10/1/96 through 3/31/975 0.55%2 1.03%2 2.95%2 2.47%2
9/30/96 0.55 1.04 3.06 2.56
11/1/944 through 9/30/95 0.552 1.082 3.342 2.812
4/29/941 through 9/30/94 0.362 1.022 2.542 1.872
INVESTOR A CLASS
10/1/96 through 3/31/975 0.72%2 1.20%2 2.76%2 2.28%2
9/30/96 0.76 1.25 2.83 2.34
2/14/951 through 9/30/95 0.832 1.362 3.052 2.522
</TABLE>
See accompanying notes to financial statements.
30 & 31
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
====================================================================================================================================
- -------------------------------------
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------
INSTITUTIONAL CLASS
<S> <C> <C> <C> <C> <C> <C> <C>
10/1/96 through 3/31/975 $1.00 $0.0164 $(0.0164) $0.00 $1.00 1.65% $ 51,865
9/30/96 1.00 0.0346 (0.0346) 0.00 1.00 3.52 32,944
9/30/95 1.00 0.0363 (0.0363) 0.00 1.00 3.69 23,679
9/30/94 1.00 0.0252 (0.0252) 0.00 1.00 2.55 10,521
6/10/931 through 9/30/93 1.00 0.0073 (0.0073) 0.00 1.00 0.73 12,026
SERVICE CLASS
10/1/96 through 3/31/975 $1.00 $0.0149 $(0.0149) $0.00 $1.00 1.50% $ 55,395
9/30/96 1.00 0.0316 (0.0316) 0.00 1.00 3.21 45,525
9/30/95 1.00 0.0333 (0.0333) 0.00 1.00 3.38 49,857
9/30/94 1.00 0.0225 (0.0225) 0.00 1.00 2.27 44,066
6/1/931 through 9/30/93 1.00 0.0074 (0.0074) 0.00 1.00 0.75 15,239
INVESTOR A CLASS
10/1/96 through 3/31/975 $1.00 $0.0140 $(0.0140) $0.00 $1.00 1.41% $ 12,432
9/30/96 1.00 0.0293 (0.0293) 0.00 1.00 2.98 5,672
9/30/95 1.00 0.0310 (0.0310) 0.00 1.00 3.15 75
10/5/931 through 9/30/94 1.00 0.0199 (0.0199) 0.00 1.00 2.01 28
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- ---------------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 $1.00 $0.0160 $(0.0160) $0.00 $1.00 1.61% $225,093
9/30/96 1.00 0.0334 (0.0334) 0.00 1.00 3.40 198,822
9/30/95 1.00 0.0355 (0.0355) 0.00 1.00 3.61 233,413
9/30/94 1.00 0.0247 (0.0247) 0.00 1.00 2.49 158,102
6/1/931 through 9/30/93 1.00 0.0078 (0.0078) 0.00 1.00 0.78 2,242
SERVICE CLASS
10/1/96 through 3/31/975 $1.00 $0.0145 $(0.0145) $0.00 $1.00 1.46% $241,269
9/30/96 1.00 0.0304 (0.0304) 0.00 1.00 3.04 224,197
9/30/95 1.00 0.0325 (0.0325) 0.00 1.00 3.33 147,739
9/30/94 1.00 0.0221 (0.0221) 0.00 1.00 2.24 60,560
6/11/931 through 9/30/93 1.00 0.0074 (0.0074) 0.00 1.00 0.74 8,919
INVESTOR A CLASS
10/1/96 through 3/31/975 $1.00 $0.0136 $(0.0136) $0.00 $1.00 1.37% $ 88,444
9/30/96 1.00 0.0281 (0.0281) 0.00 1.00 2.90 63,424
9/30/95 1.00 0.0302 (0.0302) 0.00 1.00 3.06 750
12/28/931 through 9/30/94 1.00 0.0153 (0.0153) 0.00 1.00 1.58 139
- -----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 $1.00 $0.0168 $(0.0168) $0.00 $1.00 1.69% $ 46,167
9/30/96 1.00 0.0348 (0.0348) 0.00 1.00 3.54 38,553
9/30/95 1.00 0.0368 (0.0368) 0.00 1.00 3.74 24,409
7/25/941 through 9/30/94 1.00 0.0053 (0.0053) 0.00 1.00 0.53 13,831
SERVICE CLASS
10/1/96 through 3/31/975 $1.00 $0.0153 $(0.0153) $0.00 $1.00 1.54% $ 14,563
9/30/96 1.00 0.0318 (0.0318) 0.00 1.00 3.25 14,968
10/11/941 through 9/30/95 1.00 0.0330 (0.0330) 0.00 1.00 3.35 821
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
ASSETS WAIVERS) ASSETS WAIVERS)
======================================================================================================
- -------------------------------------
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------
INSTITUTIONAL CLASS
<S> <C> <C> <C> <C>
10/1/96 through 3/31/975 0.29%2 0.72%2 3.27%2 2.84%2
9/30/96 0.29 0.75 3.47 3.01
9/30/95 0.27 0.73 3.66 3.20
9/30/94 0.13 0.77 2.56 1.93
6/10/931 through 9/30/93 0.102 0.832 2.452 1.722
SERVICE CLASS
10/1/96 through 3/31/975 0.59%2 1.02%2 2.98%2 2.54%2
9/30/96 0.59 1.05 3.17 2.71
9/30/95 0.57 1.03 3.35 2.89
9/30/94 0.40 1.04 2.29 1.65
6/1/931 through 9/30/93 0.232 0.962 2.232 1.502
INVESTOR A CLASS
10/1/96 through 3/31/975 0.77%2 1.20%2 2.79%2 2.36%2
9/30/96 0.79 1.25 2.88 2.42
9/30/95 0.80 1.26 3.02 2.56
10/5/931 through 9/30/94 0.622 1.262 1.942 1.302
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- ---------------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 0.29%2 0.70%2 3.19%2 2.78%2
9/30/96 0.29 0.71 3.34 2.92
9/30/95 0.26 0.68 3.54 3.12
9/30/94 0.16 0.73 2.64 2.07
6/1/931 through 9/30/93 0.092 0.972 2.152 1.272
SERVICE CLASS
10/1/96 through 3/31/975 0.59%2 1.00%2 2.90%2 2.49%2
9/30/96 0.59 1.01 3.02 2.59
9/30/95 0.57 0.99 3.29 2.87
9/30/94 0.42 0.99 2.31 1.75
6/11/931 through 9/30/93 0.322 1.202 2.422 1.542
INVESTOR A CLASS
10/1/96 through 3/31/975 0.76%2 1.17%2 2.74%2 2.33%2
9/30/96 0.81 1.23 2.81 2.39
9/30/95 0.82 1.24 3.03 2.61
12/28/931 through 9/30/94 0.652 1.222 2.112 1.542
- -----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------
INSTITUTIONAL CLASS
10/1/96 through 3/31/975 0.15%2 0.80%2 3.36%2 2.71%2
9/30/96 0.14 0.82 3.47 2.79
9/30/95 0.10 0.95 3.71 2.86
7/25/941 through 9/30/94 0.102 1.022 2.892 1.972
SERVICE CLASS
10/1/96 through 3/31/975 0.45%2 1.10%2 3.06%2 2.42%2
9/30/96 0.45 1.12 3.05 2.38
10/11/941 through 9/30/95 0.402 1.252 3.502 2.652
</TABLE>
1 Commencement of operations.
2 Annualized.
3 There were no Service Shares outstanding as of September 30, 1994.
4 Reissuance of Shares.
5 Unaudited.
See accompanying notes to financial statements.
32 & 33
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Compass Capital FundsSM ("the Fund") (formerly The PNC(REGISTRATION MARK)
Fund) was organized on December 22, 1988 as a Massachusetts business trust and
is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund currently has 30
publicly-offered portfolios, eight of which are included in these financial
statements (the "Portfolios"). Each Portfolio is authorized to issue an
unlimited number of shares with a par value of $0.001. Each portfolio of the
Fund offers five classes of shares. Shares of all classes of a Portfolio
represent equal pro rata interests in such Portfolio, except that each class
bears different expenses which reflect the difference in the range of services
provided to them. The following table provides a list of the Portfolios included
in this report along with their respective class-specific fee arrangements as
provided under the Fund's Amended and Restated Distribution and Service Plan
(the "Plan"). Fees are expressed as a percentage of average daily net asset
values of the respective classes.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Share Classes
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Service Investor A Investor B Investor C
- ------------------------------------------------------------------------------------------------------------------------------------
Contractual Actual Contractual Actual Contractual Actual Contractual Actual Contractual Actual
Fees Fees (4) Fees (1) Fees (4) Fees (2) Fees (4) Fees (3) Fees (4) Fees (3) Fees (4)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia Municipal
Money Market None None 0.30% 0.30% 0.50% N/A 1.15% N/A 1.15% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) -- the maximum annual contractual fees are comprised of a .15% service fee
and .15% shareholder processing fee.
(2) -- the maximum annual contractual fees are comprised of a .10% distribution
fee, .25% service fee and .15% shareholder processing fee.
(3) -- the maximum annual contractual fees are comprised of a .75% distribution
fee, .25% service fee and .15% shareholder processing fee.
(4) -- the actual fees are as of March 31, 1997.
</FN>
</TABLE>
In addition, Institutional and Service shares bear a Transfer Agent fee at an
annual rate not to exceed .03% and Investor A, Investor B and Investor C shares
bear a Transfer Agent fee at an annual rate not to exceed .10% of the average
daily net asset of such respective classes.
(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires the use of management estimates. Actual results could differ from these
estimates.
SECURITY VALUATION -- Portfolio securities are valued under the amortized
cost method which approximates current market value. Under this method,
securities are valued at cost when purchased and thereafter, a constant
proportionate amortization of any discount or premium is recorded until the
maturity of the security. Regular review and monitoring of the valuation is
performed in an attempt to avoid dilution or other unfair results to
shareholders. The Fund seeks to maintain the net asset value per share of each
Portfolio at $1.00.
DIVIDENDS TO SHAREHOLDERS -- Dividends from net investment income are
declared daily and paid monthly. Net realized capital gains, if any, will be
distributed at least annually.
FEDERAL TAXES -- No provision is made for federal taxes as it is the Fund's
intention to have each Portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from federal income and excise taxes.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
federal
34
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
income tax purposes. Interest income is recorded on the accrual basis. Expenses
not directly attributable to a specific Portfolio or class are allocated among
all of the Portfolios or classes of the Fund based on their relative net assets.
REPURCHASE AGREEMENTS -- Money market instruments may be purchased from
banks and non-bank dealers subject to the seller's agreement to repurchase them
at an agreed upon date and price. Collateral for repurchase agreements may have
longer maturities than the maximum permissible remaining maturity of portfolio
investments. The seller will be required on a daily basis to maintain the value
of the securities subject to the agreement at not less than the repurchase
price. The agreements are conditioned upon the collateral being deposited under
the Federal Reserve book-entry system or held in a separate account by the
Fund's custodian or an authorized securities depository.
ORGANIZATION COSTS -- Costs incurred by each Portfolio in connection with
its organization, registration and initial public offering have been deferred
and are being amortized using the straight-line method over a five-year period
beginning on the date on which each Portfolio commenced its investment
activities.
(B) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, PNC Asset Management Group,
Inc. ("PAMG"), a wholly-owned subsidiary of PNC Bank, National Association ("PNC
Bank"), serves as investment adviser for all the Portfolios. PNC Institutional
Management Corporation ("PIMC"), a wholly-owned subsidiary of PAMG, serves as
sub-adviser to the Portfolios. PNC Bank, PAMG and PIMC are indirect wholly-owned
subsidiary of PNC Bank Corp.
For its advisory services, PAMG is entitled to receive fees at the
following annual rates, computed daily and payable monthly, based on each
Portfolio's average daily net assets: .45% of the first $1 billion, .40% of the
next $1 billion, .375% of the next $1 billion, and .35% of net assets in excess
of $3 billion.
PAMG may, at its discretion, waive all or any portion of its advisory fees
for any Portfolio. For the period ended March 31, 1997, 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 .................................... $5,275,737 $4,044,872 $1,230,865
U.S. Treasury Money Market Portfolio ...................... 2,353,861 1,945,365 408,496
Municipal Money Market Portfolio .......................... 810,007 702,006 108,001
New Jersey Municipal Money Market Portfolio ............... 248,454 215,329 33,125
North Carolina Municipal Money Market Portfolio ........... 334,056 289,516 44,540
Ohio Municipal Money Market Portfolio ..................... 258,115 223,700 34,415
Pennsylvania Municipal Money Market Portfolio ............. 1,243,166 1,055,732 187,434
Virginia Municipal Money Market Portfolio ................. 121,589 121,589 --
</TABLE>
PAMG pays PIMC for its sub-advisory services.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp.,
Compass Capital Group, Inc. ("CCG"), an indirect wholly-owned subsidiary of PNC
Bank Corp., and Compass Distributors, Inc. ("CDI") act as co-administrators for
the Fund. The combined administration fee is computed daily and payable monthly,
based on a percentage of the average daily net assets of each Portfolio, at the
following annual rates: .18% of the first $500 million, .16% of the next $500
million, .14% of the next $1 billion and .13% of average daily net assets in
excess of $2 billion.
PFPC, CDI and CCG may, at their discretion, voluntarily waive all or any
portion of their administration fees for any Portfolio. For the period ended
March 31, 1997, administration 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 ................................ $1,905,379 $326,509 $1,578,870
U.S. Treasury Money Market Portfolio .................. 886,165 157,681 728,484
Municipal Money Market Portfolio ...................... 324,003 69,070 254,933
New Jersey Municipal Money Market Portfolio ........... 99,382 41,414 57,968
North Carolina Municipal Money Market Portfolio ....... 133,623 67,046 66,577
Ohio Municipal Money Market Portfolio ................. 103,246 24,544 78,702
Pennsylvania Municipal Money Market Portfolio ......... 497,267 82,878 414,389
Virginia Municipal Money Market Portfolio ............. 48,635 48,635 --
</TABLE>
35
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
In addition, PNC Bank serves as custodian for each of the Fund's
Portfolios. PFPC serves as transfer and dividend disbursing agent.
PAMG, PFPC, CCG and CDI also voluntarily agreed to reimburse expenses in
the amount of $4,780 with respect to the Virginia Municipal Money Market
Portfolio for the period ended March 31, 1997.
(C) CAPITAL SHARES
Because the Portfolios have each sold and redeemed shares only at a
constant net asset value of $1.00 per share, the number of shares represented by
such sales, acquisitions, reinvestments, and redemptions is the same as the
dollar amounts shown below for such transactions.
Transactions in capital shares for each period were as follows:
Money Market Portfolio
---------------------------------
For the
Six Months For the
Ended Year Ended
3/31/97 9/30/96
------------- --------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 922,892,389 $ 1,482,131,945
Service Class ........................ 2,133,787,768 5,718,258,415
Investor A Class ..................... 212,893,166 295,686,679
Investor B Class ..................... 378,865 115,764
Investor C Class ..................... 1,152,667 --
Shares issued in merger:
Institutional Class .................. -- --
Service Class ........................ -- 547,306,029
Investor A Class ..................... -- --
Investor B Class ..................... -- --
Investor C Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 47,381 13,156
Service Class ........................ 3,775,144 8,291,571
Investor A Class ..................... 4,443,101 4,364,346
Investor B Class ..................... 977 1,233
Investor C Class ..................... 394 --
Shares redeemed:
Institutional Class .................. (586,386,251) (1,548,608,564)
Service Class ........................ (2,054,641,569) (5,892,912,622)
Investor A Class ..................... (150,614,170) (148,141,000)
Investor B Class ..................... (223,696) (5,214)
Investor C Class ..................... (1,152,561) --
--------------- ---------------
Net increase ......................... $ 486,353,605 $ 466,501,738
=============== ===============
36
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
U.S. Treasury Money
Market Portfolio
-----------------------------------
For the
Six Months For the
Ended Year Ended
3/31/97 9/30/96
---------------- -----------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 766,171,542 $ 1,652,699,602
Service Class ........................ 1,281,473,112 4,101,838,413
Investor A Class ..................... 33,539,511 34,222,155
Shares issued in merger:
Institutional Class .................. -- --
Service Class ........................ -- 607,933,669
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 53,410 108,431
Service Class ........................ 1,636,332 4,272,818
Investor A Class ..................... 334,767 281,392
Shares redeemed:
Institutional Class .................. (770,733,501) (1,606,090,964)
Service Class ........................ (1,382,140,793) (4,309,339,833)
Investor A Class ..................... (23,557,347) (25,157,768)
--------------- ---------------
Net increase (decrease) .............. $ (93,222,967) $ 460,767,915
=============== ===============
Municipal
Money Market Portfolio
---------------------------------
For the
Six Months For the
Ended Year Ended
3/31/97 9/30/96
------------ -------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 136,368,670 $ 254,290,132
Service Class ........................ 601,596,072 927,781,113
Investor A Class ..................... 6,835,308 2,752,567
Shares issued in merger:
Institutional Class .................. -- --
Service Class ........................ -- 37,389,008
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. -- 4,754
Service Class ........................ 582,315 1,419,165
Investor A Class ..................... 25,536 4,669
Shares redeemed:
Institutional Class .................. (122,766,048) (264,142,296)
Service Class ........................ (518,364,801) (970,636,798)
Investor A Class ..................... (4,856,257) (925,748)
------------- -------------
Net increase (decrease) .............. $ 99,420,795 $ (12,063,434)
============= =============
37
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
New Jersey Municipal
Money Market Portfolio
---------------------------------------------------
For the For the
For the Period Period
Six Months 2/1/96 3/1/95
Ended through through
3/31/97 9/30/96 1/31/96
---------------- ---------------- ----------------
(Unaudited)
Prior Class
<S> <C> <C> <C>
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 .............................. 8,666,068 1,780,000 --
Shares issued in merger .................. -- -- 4,195,000
Shares issued in reinvestment of dividends 2,214 -- --
Shares redeemed .......................... (6,951,000) (5,360,808) --
------------- ------------- -------------
1,717,282 (3,580,808) 4,195,000
Service Class
Exchanged in merger ...................... -- -- 56,154,777
Shares sold .............................. 62,919,262 115,679,773 2,238,112
Shares issued in merger .................. -- -- 559,547
Shares issued in reinvestment of dividends 79,925 97,257 --
Shares redeemed .......................... (37,195,079) (104,595,622) (1,976,807)
------------- ------------- -------------
25,804,108 11,181,408 56,975,629
Investor A Class
Shares sold .............................. 55,602,427 39,216,216 12,203,184
Shares issued in merger .................. -- -- 12,053,281
Shares issued in reinvestment of dividends 287,577 325,948 45,768
Shares redeemed .......................... (47,319,726) (43,890,958) (2,640,160)
------------- ------------- -------------
8,570,278 (4,348,794) 21,662,073
Investor B Class
Shares sold .............................. 40,000 -- --
Shares issued in reinvestment of dividends -- -- --
Shares redeemed .......................... -- -- --
------------- ------------- -------------
40,000 -- --
------------- ------------- -------------
Net increase ............................. $ 36,131,668 $ 3,251,806 $ 39,215,073
============= ============= =============
</TABLE>
38
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
North Carolina Municipal
Money Market Portfolio
------------------------------------
For the
Six Months For the
Ended Year Ended
3/31/97 9/30/96
----------------- ------------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 248,000,166 $ 371,920,387
Service Class ........................ 10,656,081 30,131,643
Investor A Class ..................... 99,800 56,500
Shares issued in reinvestment of dividends:
Institutional Class .................. 73,787 478
Service Class ........................ 1,964 136,347
Investor A Class ..................... -- 2,202
Shares redeemed:
Institutional Class .................. (220,402,631) (336,496,796)
Service Class ........................ (11,757,157) (24,645,317)
Investor A Class ..................... (500) (1,000)
------------- -------------
Net increase ......................... $ 26,671,510 $ 41,104,444
============= =============
Ohio Municipal
Money Market Portfolio
------------------------------------
For the
Six Months For the
Ended Year Ended
3/31/97 9/30/96
------------------ ----------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 158,724,411 $ 279,900,577
Service Class ........................ 54,870,088 97,424,650
Investor A Class ..................... 13,303,766 21,631,388
Shares issued in reinvestment of dividends:
Institutional Class .................. 20,652 96,704
Service Class ........................ 244,258 536,941
Investor A Class ..................... 126,462 87,588
Shares redeemed:
Institutional Class .................. (139,825,227) (270,730,685)
Service Class ........................ (45,243,468) (102,290,339)
Investor A Class ..................... (6,670,435) (16,121,036)
------------- -------------
Net increase ......................... $ 35,550,507 $ 10,535,788
============= =============
39
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Pennsylvania Municipal
Money Market Portfolio
-----------------------------------
For the
Six Months For the
Ended Year Ended
3/31/97 9/30/96
------------------ ----------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 427,857,528 $ 699,970,106
Service Class ........................ 207,776,551 510,380,872
Investor A Class ..................... 239,515,966 344,023,126
Shares issued in merger:
Institutional Class .................. -- --
Service Class ........................ -- 51,341,917
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 61,980 81,419
Service Class ........................ 386,006 976,100
Investor A Class ..................... 1,192,299 1,434,393
Shares redeemed:
Institutional Class .................. (401,647,705) (734,642,456)
Service Class ........................ (191,091,278) (486,239,639)
Investor A Class ..................... (215,688,353) (282,784,199)
------------- -------------
Net increase ......................... $ 68,362,994 $ 104,541,639
============= =============
Virginia Municipal
Money Market Portfolio
-----------------------------------
For the
Six Months For the
Ended Year Ended
3/31/97 9/30/96
---------------- --------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 38,098,714 $ 87,292,017
Service Class ........................ 5,539,086 39,822,130
Shares issued in reinvestment of dividends:
Institutional Class .................. 43,836 --
Service Class ........................ -- 106,079
Shares redeemed:
Institutional Class .................. (30,484,395) (73,148,152)
Service Class ........................ (5,988,252) (25,780,943)
------------ ------------
Net increase ......................... $ 7,208,989 $ 28,291,131
============ ============
40
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
(D) AT MARCH 31, 1997, 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 .................... $2,811,346,145 $1,040,317,851 $407,145,130 $122,205,675
Accumulated net realized gain (loss)
on investment transactions ........ 5,523 (200,079)1 (320,833) (6,962)
-------------- -------------- ------------ ------------
$2,811,351,668 $1,040,117,772 $406,824,297 $122,198,713
============== ============== ============ ============
</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 ................ $146,342,477 $119,699,751 $554,815,071 $60,729,782
Accumulated net realized loss
on investment transactions .... (121) (8,125)1 (9,472)1 (171)
------------ ------------ ------------ -----------
$146,342,356 $119,691,626 $554,805,599 $60,729,611
============ ============ ============ ===========
<FN>
- -------------
1 Includes $203,528, $5,840, and $1,626 of deferred post-October losses as of
September 30, 1996, respectively.
</FN>
</TABLE>
(E) CAPITAL LOSS CARRYOVER
At September 30, 1996, capital loss carryovers were available to offset
possible future realized capital gains as follows: $59,424 in the U.S. Treasury
Money Market Portfolio which expires through 2004, $320,833 in the Municipal
Money Market Portfolio which expires through 2004, $6,962 in the New Jersey
Municipal Money Market Portfolio which expires through 2003, $121 in the North
Carolina Municipal Money Market Portfolio which expires through 2004, $2,285 in
the Ohio Municipal Money Market Portfolio which expires through 2003, $7,021 in
the Pennsylvania Municipal Money Market Portfolio which expires through 2004,
and $171 in the Virginia Municipal Money Market Portfolio which expires through
2004.
(F) MERGER
On September 29, 1995 and October 2, 1995, respectively, the Board of
Trustees of the Fund and the Board of Trustees of The Compass Capital Group of
Funds ("Compass") approved an asset purchase agreement providing for the
transfer of all of the assets and liabilities of Compass to the Fund. At a
special meeting of shareholders held on December 11, 1995, the shareholders of
Compass voted to approve the asset purchase agreement. Pursuant to the asset
purchase agreement, on January 13, 1996 (February 13, 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 details of the business combination as it relates to the Portfolios are
described below.
The following table summarizes certain relevant information of the Fund
prior to and immediately after the above-referenced business combination. Unless
indicated otherwise, the Fund Portfolio is the accounting survivor. The new
combined funds maintain all the operating history of the accounting survivor.
The Compass Capital Group of Funds
- -------------------------------------------------------
Net Asset
Shares at Value at
Fund Name 1/13/96 1/13/96
- ---------------------------- ------------ ------------
Cash Reserve 547,461,079 $547,306,029
U.S. Treasury 607,999,373 607,933,712
Municipal Money 37,420,876 37,389,008
New Jersey Municipal Money 56,147,148 56,154,777
Pennsylvania Municipal Money 51,350,576 51,341,917
The Compass Capital Funds
- ----------------------------------------------------------------------
Combined
Shares Net Assets
New Issued in After NAV
Portfolio Business Business per
Name Combination Combination Share
- ---------------------------------- ------------ -------------- ------
Money Market 547,461,079 $2,573,597,347 $1.00
U.S. Treasury Money Market 607,999,373 1,403,912,997 $1.00
Municipal Money Market 37,420,876 383,861,249 $1.00
New Jersey Municipal Money Market1 56,147,148 72,306,961 $1.00
Pennsylvania Municipal Money Market 51,350,576 533,075,086 $1.00
- ------------------
1 The Compass Capital Group of Funds portfolio is the accounting survivor in
this business combination.
41
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
Investment Adviser
PNC Asset Management Group, Inc.
Philadelphia, Pennsylvania 19101
Sub-Adviser
PNC Institutional Management
Corporation
Wilmington, Delaware 19809
Custodian
PNC Bank, National Association
Philadelphia, Pennsylvania 19101
Co-Administrator and Transfer Agent
PFPC Inc.
Wilmington, Delaware 19809
Co-Administrator and Distributor
Compass Distributors, Inc.
West Conshohocken, Pennsylvania 19428
Co-Administrator
Compass Capital Group, Inc.
New York, New York 10154
Counsel
Drinker Biddle & Reath LLP
Philadelphia, Pennsylvania 19107
Independent Accountants
Coopers & Lybrand, L.L.P.
Philadelphia, Pennsylvania 19103
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
FUND SPECTRUM
COMPASS CAPITAL FUNDS IS A LEADING MUTUAL FUND COMPANY CURRENTLY MANAGING IN
EXCESS OF $12 BILLION IN 30 PORTFOLIOS DESIGNED TO FIT A BROAD RANGE OF
INVESTMENT GOALS. EACH PORTFOLIO IS MANAGED BY RECOGNIZED EXPERTS IN EQUITY,
FIXED INCOME, INTERNATIONAL, AND TAX-FREE INVESTING WHO ADHERE TO A PURE
INVESTMENT STYLE.SM
STOCK PORTFOLIOS
Large Cap Value Equity Small Cap Growth Equity
Large Cap Growth Equity International Equity
Mid-Cap Value Equity International Emerging Markets
Mid-Cap Growth Equity Select Equity
Small Cap Value Equity Index Equity
STOCK & BOND PORTFOLIOS
Balanced
BOND PORTFOLIOS
Low Duration Bond Government Income
Intermediate Government Bond Managed Income
Intermediate Bond International Bond
Core Bond
TAX-FREE BOND PORTFOLIOS
Tax-Free Income New Jersey Tax-Free Income
Pennsylvania Tax-Free Income Ohio Tax-Free Income
MONEY MARKET PORTFOLIOS
Money Market North Carolina Municipal Money Market
U.S. Treasury Money Market Ohio Municipal Money Market
Municipal Money Market Pennsylvania Municipal Money Market
New Jersey Municipal Money Market Virginia Municipal Money Market
SHAREHOLDER PRIVILEGES
24 Hour Account Information
Call us at 1-800-441-7762, 24 hours a day, 7 days a week to get information
about your account balances, recent transactions and share prices. Note:
Institutional and Service Share Class investors should call 1-800-441-7764. You
can also reach us on the Internet through the World Wide Web by accessing
http://www.compassfunds.com.
Exchange Privileges
Should your investment goals change, shareholders in our Investor Class shares
may exchange all or part of their investments into the same share class of any
other portfolio of Compass Capital Funds. (1)
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the Compass Capital portfolios.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments, of $100 or more from their Compass Capital
portfolios, as long as their account is at least $1,000.
Retirement Plans
Shareholders may make investments in conjunction with individual IRA accounts or
rollover IRAs.
General Information About The Compass Funds
If you would like additional reports or have questions regarding any of the 30
Compass Capital Funds, please call 1-888-4COMPASS.
(1) Compass Capital Funds reserves the right to modify or terminate the exchange
privileges at any time.
<PAGE>
[GRAPHIC OMITTED]
COMPASS
CAPITAL FUNDS
PURE INVESTMENT STYLE SM
P.O. Box 8907
Wilmington, DE 19899
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.
SR 3/31/97-MM
