[GRAPHIC OMITTED]
MONEY MARKET PORTFOLIOS
ANNUAL
REPORT
TO SHAREHOLDERS
SEPTEMBER 30, 1997
COMPASS CAPITAL FUNDS
[LOGO OMITTED]
PURE INVESTMENT STYLE (SERVICE MARK)
* 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
[GRAPHIC OMITTED]
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...................... 17-21
VIRGINIA MUNICIPAL MONEY MARKET.......................... 22-23
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
REPORT OF INDEPENDENT ACCOUNTANTS.............................. 42
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
PRESIDENT'S LETTER
November 15, 1997
Dear Shareholder:
We are pleased to present the Annual Report for the Compass Capital Funds
for 1997, a year characterized by a bull market for equities and bonds and
strong performance by the Compass Capital Funds' portfolios.
Over the twelve month period ended September 30, 1997, the financial
markets exhibited remarkable strength. The stock market broke through to an
all-time high this year and overall was up nearly 38% (as measured by the S&P
500 Index), extending one of the longest bull markets in modern times yet
another year. At the same time, the bond market's performance reflected low
inflation and steady economic growth, producing returns for investors of over 8%
(as measured by the Lehman Brothers Aggregate Index).
Because we know how important it is for you to keep track of your
investments, we continue to work hard to make the Annual Report for the Compass
Capital Funds easy to read and understand. We have organized the pages into
individual summaries for all our funds, highlighting key portfolio management
activities for the year. Also included in each summary page is a performance
graph which shows how all classes of each portfolio performed versus their
benchmark.
Compass Capital's emphasis on Pure Investment Style(SERVICE MARK) has
continued to enable investors to receive actual returns on individual portfolios
that are consistent with their expectations. What's more, in our ongoing efforts
to develop quality investment products to meet virtually any individual need, we
have introduced three new funds since our 1996 Annual Report: Compass Capital
Mid-Cap Growth Equity, Compass Capital Mid-Cap Value Equity and Compass Capital
International Small Cap Equity Portfolios.
Compass Capital International Small Cap Equity Portfolio, which was
launched on September 26, 1997, seeks to provide strong growth potential and
diversification benefits by primarily investing in smaller companies domiciled
in industrialized foreign countries -- an asset class that is considered
undervalued by many analysts.
1
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
While it may be unrealistic to expect the same magnitude of gains in the
stock market as we have enjoyed in recent years, particularly in light of
October's global equity market volatility, we believe that equity markets can
continue to offer opportunities to disciplined investors.We also see strong
opportunities in fixed income products as we believe that historically low
inflation rates may enable bond or bond fund investors to earn strong
returns.Most importantly, we maintain our core belief - that a disciplined
investment strategy will best serve investors in their pursuit of long-term
investment goals.
Thank you for your confidence in Compass Capital Funds. We appreciate the
opportunity to help you achieve your long-term investment goals.
Sincerely,
(/S/ KAREN 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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
---------- ---------- ---------
CERTIFICATES OF DEPOSIT--30.5%
DOMESTIC--10.8%
Bankers Trust Co.
5.98% 06/19/98 $50,000 $ 49,993,166
5.82% 07/31/98 50,000 49,988,082
Chase Manhattan Bank-Delaware
5.71% 03/09/98 50,000 50,000,000
First National Bank of Boston
5.62% 10/08/97 75,000 75,000,000
5.60% 11/19/97 50,000 50,000,000
Wilmington Trust Co.
5.92% 10/20/97 23,000 23,000,000
------------
297,981,248
------------
YANKEE DOLLAR--19.7%
ABN - AMRO Bank
6.26% 04/20/98 25,000 25,025,010
Banque Nationale de Paris
5.89% 11/17/97 30,000 30,002,745
6.22% 04/09/98 50,000 50,085,215
5.86% 08/10/98 25,000 24,987,702
Caisse Nationale de Credit Agricole
5.64% 10/07/97 75,000 75,000,370
Deutsche Banc
6.21% 04/20/98 30,000 30,022,298
Industrial Bank of Japan
5.73% 10/10/97 50,000 50,000,000
5.72% 10/23/97 30,000 30,001,222
Rabobank Nederland
5.71% 02/17/98 50,000 50,001,875
Royal Bank of Canada
5.94% 06/25/98 25,000 24,989,503
Sanwa Bank Ltd. Japan
5.66% 12/18/97 25,000 25,000,534
Societe Generale
5.77% 01/09/98 25,000 24,997,377
Sumitomo Bank
5.64% 10/20/97 50,000 50,000,000
5.66% 11/10/97 25,000 25,000,000
Swedbank, Inc.
5.63% 11/20/97 25,000 25,000,342
------------
540,114,193
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $838,095,441) 838,095,441
------------
COMMERCIAL PAPER--49.7%
ASSET BACKED SECURITIES--6.3%
CXC, Inc.
5.53% 12/12/97 50,000 49,447,000
5.53% 12/15/97 25,000 24,711,979
5.53% 12/17/97 25,000 24,704,299
Old Line Funding Corp.
5.56% 10/03/97 75,000 74,976,833
------------
173,840,111
------------
BANKS--9.9%
AB Spintab Swedmortgage
5.52% 11/06/97 50,000 49,724,000
5.60% 02/12/98 43,200 42,299,520
Toronto Dominion Holdings, Inc.
5.59% 10/15/97 50,000 49,891,306
Unifunding, Inc.
5.54% 10/07/97 50,000 49,953,833
5.52% 10/30/97 50,000 49,777,667
5.57% 03/03/98 30,000 29,289,825
------------
270,936,151
------------
PAR
MATURITY (000) VALUE
---------- ---------- ---------
COMMERCIAL PAPER (CONTINUED)
CREDIT INSTITUTIONS--1.8%
General Motors Acceptance Corp.
5.75% 11/17/97 $50,000 $ 49,624,653
--------------
FINANCE SERVICES--5.0%
Countrywide Funding Corp.
5.55% 11/06/97 47,000 46,739,150
5.55% 12/12/97 25,000 24,722,500
Dakota Certificates Program
5.55% 10/09/97 64,936 64,855,912
--------------
136,317,562
--------------
INDUSTRIAL & COMMERCIAL MACHINERY
& EQUIPMENT--1.7%
BTR Dunlop Finance, Inc.
5.68% 11/18/97 48,000 47,636,480
--------------
MOTOR VEHICLES--4.5%
BMW US Capital Corp.
5.54% 10/06/97 50,083 50,044,429
5.55% 10/08/97 50,000 49,946,042
5.52% 12/16/97 25,000 24,708,667
--------------
124,699,138
--------------
PERSONAL SERVICES--1.0%
Block Financial Corp.
5.55% 12/19/97 28,000 27,658,983
--------------
SECURITY BROKERS & DEALERS--10.8%
Lehman Brothers Holdings, Inc.
5.57% 10/22/97 50,000 49,837,542
Merrill Lynch & Co. Canadian
5.57% 12/12/97 40,000 39,554,400
5.53% 12/15/97 50,000 49,423,958
5.53% 02/24/98 40,000 39,102,911
Morgan Stanley Group, Inc.
5.52% 12/18/97 50,000 49,402,000
Nomura Holding America, Inc.
5.67% 10/20/97 27,000 26,919,202
5.61% 11/18/97 17,000 16,872,840
5.63% 11/26/97 25,000 24,781,056
--------------
295,893,909
--------------
SERVICES - AUTO RENTAL & LEASING--1.8%
PHH Corp.
5.53% 10/27/97 50,000 49,800,306
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--6.9%
Corporate Asset Funding, Inc.
5.70% 01/12/98 39,200 38,560,713
Heller Financial, Inc.
5.63% 10/03/97 100,000 99,968,722
Sears Roebuck Acceptance Corp.
5.65% 10/30/97 50,000 49,772,431
--------------
188,301,866
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,364,709,159) 1,364,709,159
--------------
TIME DEPOSITS--3.1%
Key Bank National Association
6.37% 10/01/97 85,000 85,000,000
(Cost $85,000,000) --------------
See accompanying notes to financial statements.
3
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO (CONCLUDED)
PAR
AS OF SEPTEMBER 30, 1997 MATURITY (000) VALUE
---------- ---------- ---------
GUARANTEED INVESTMENT CONTRACT--0.4%
Peoples Security Life
5.82% 10/01/97 $10,000 $ 10,000,000
(Cost $10,000,000) --------------
MEDIUM TERM NOTES--2.9%
CREDIT INSTITUTIONS--0.6%
General Motors Acceptance Corp.
5.62% 10/30/97 15,000 14,999,295
--------------
FINANCE LESSORS--1.6%
IBM Credit Corp.
5.80% 10/07/97 25,000 24,999,803
5.70% 10/27/97 20,000 19,999,603
--------------
44,999,406
--------------
SECURITY BROKERS & DEALERS--0.7%
Bear Stearns & Co., Inc.
5.86% 01/20/98 20,000 20,000,000
--------------
TOTAL MEDIUM TERM NOTES
(Cost $79,998,701) 79,998,701
--------------
VARIABLE RATE OBLIGATIONS--13.2%
FINANCE SERVICES--5.1%
General American Life
5.83%** 10/01/97 50,000 50,000,000
SMM Trust
5.65%** 10/16/97 40,000 40,000,000
5.65%** 10/29/97 50,000 50,000,000
--------------
140,000,000
--------------
SECURITY BROKERS & DEALERS--7.2%
Bear Stearns & Co., Inc.
5.63%** 10/06/97 40,000 40,000,000
5.62%** 10/24/97 40,000 40,000,000
5.63%** 03/26/98 30,000 30,000,000
Lehman Brothers Holdings, Inc.
5.73%** 12/05/97 50,000 50,000,000
Morgan Stanley Group
5.62%** 10/18/97 37,000 36,997,742
--------------
196,997,742
--------------
STUDENT LOAN MARKETING ASSOCIATION--0.2%
5.23%** 10/07/97 5,000 4,998,894
--------------
YANKEE DOLLAR--0.7%
Royal Bank of Canada
5.71%** 10/01/97 20,000 19,997,338
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $361,993,974) 361,993,974
--------------
Par
(000) Value
--------- --------------
INFINITY CASH RESERVE, PRIME--0.1%
Infinity Cash Reserve-Prime $ 3,835 $ 3,835,323
(Cost $3,835,323) --------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $2,743,632,598*) 99.9% 2,743,632,598
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 1,527,443
====== ==============
NET ASSETS (Equivalent to $1.00
per share based on 878,543,820
Institutional shares, 1,610,417,314
Service shares, 256,039,120
Investor A shares, 237,672
Investor B shares and 2,163
Investor C shares outstanding) 100.0% $2,745,160,041
====== ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A, INVESTOR B AND
INVESTOR C SHARE
($2,745,160,041 (DIVIDE) 2,745,240,089) $1.00
=====
- ------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1997.
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
U.S. TREASURY OBLIGATIONS--21.2%
U.S. TREASURY NOTES
8.75% 10/15/97 $ 10,000 $ 10,010,170
7.37% 11/15/97 20,000 20,041,298
5.37% 11/30/97 40,000 39,990,723
5.00% 01/31/98 10,000 9,975,299
5.12% 02/28/98 25,000 24,954,498
6.00% 05/31/98 15,000 15,003,017
8.25% 07/15/98 50,000 50,923,893
5.87% 08/15/98 35,000 35,053,967
4.75% 08/31/98 15,000 14,879,767
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $220,832,632) 220,832,632
--------------
REPURCHASE AGREEMENTS--78.9%
Aubrey G. Lanston & Co., Inc.
6.25% 10/01/97 50,000 50,000,000
(Agreement dated 09/30/97 to be
repurchased at $50,008,681.
Collateralized by $51,065,000
U.S. Treasury Notes 5.75% due
09/30/99. The value of the
collateral is $51,001,169.)
Barclay de Zoete Wedd
6.40% 10/01/97 50,000 50,000,000
(Agreement dated 09/30/97 to be
repurchased at $50,008,889.
Collateralized by $49,100,000
U.S. Treasury Notes 6.50% due
05/31/01. The value of the
collateral is $51,009,990.)
Goldman Sachs & Co.
6.20% 10/01/97 50,000 50,000,000
(Agreement dated 09/30/97 to be
repurchased at $50,008,611.
Collateralized by $51,245,000
U.S. Treasury Notes 5.875% due
09/30/02. The value of the
collateral is $51,000,100.)
Greenwich Capital Markets, Inc.
6.05% 10/01/97 225,000 225,000,000
(Agreement dated 09/30/97 to be
repurchased at $225,037,813.
Collateralized by $398,172,000
U.S. Treasury Notes 11.75% due
02/15/04 to 11/15/14. The value
of the collateral is $229,501,140.)
J.P. Morgan Securities
6.375% 10/01/97 50,000 50,000,000
(Agreement dated 09/30/97 to be
repurchased at $50,008,854.
Collateralized by $53,826,000
U.S. Treasury Bills 0.00% due
09/17/98. The value of the
collateral is $51,000,135.)
Merrill Lynch
5.90% 10/01/97 50,000 50,000,000
(Agreement dated 09/30/97 to be
repurchased at $50,008,194.
Collateralized by $43,602,000
U.S. Treasury Bonds 7.50% to
8.875% due 11/15/16 to 08/15/17.
The value of the collateral
is $51,003,604.)
PAR
MATURITY (000) VALUE
-------- -------- -------------
REPURCHASE AGREEMENTS (CONTINUED)
Morgan Stanley & Co.
6.45% 10/01/97 $247,000 $ 247,000,000
(Agreement dated 09/30/97 to be
repurchased at $247,044,254.
Collateralized by $79,016,000
U.S. Treasury Bonds 8.75% to
8.875% due 05/15/17 to 08/15/17
and $147,770,000 U.S. Treasury
Notes 5.125% to 7.50% due
02/28/98 to 04/30/02. The value
of the collateral is $252,265,222.)
Swiss Bank Corp.
5.90% 10/01/97 50,000 50,000,000
(Agreement dated 09/30/97 to be
repurchased at $50,008,194.
Collateralized by $3,772,000
U.S. Treasury Bonds 7.625% due
02/15/07 and $46,331,000 U.S.
Treasury Notes 5.125% to 6.25%
due 06/30/98 to 11/30/98. The value
of the collateral is $51,047,221.)
UBS Securities, Inc.
6.25% 10/01/97 50,000 50,000,000
(Agreement dated 09/30/97 to be --------------
repurchased at $50,008,681.
Collateralized by $47,498,000
U.S. Treasury Notes 7.875% due
08/15/01. The value of the collateral
is $51,000,978.)
TOTAL REPURCHASE AGREEMENTS
(Cost $822,000,000) 822,000,000
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,042,832,632*) 100.1% 1,042,832,632
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.1%) (1,205,070)
----- --------------
NET ASSETS (Equivalent to $1.00
per share based on 162,094,203
Institutional shares, 836,316,438
Service shares and 43,424,154
Investor A shares outstanding) 100.0% $1,041,627,562
====== ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($1,041,627,562 (DIVIDE) 1,041,834,795) $1.00
=====
- ----------
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
5
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO
PAR
AS OF SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS--99.9%
ARIZONA--5.9%
Apache County IDA RB (Tuscon
Electric Power Co. Project)
Series 1983 DN
4.10%** 10/07/97 $ 13,500 $ 13,500,000
Chandler IDA IDRB (SMP II Limited
Partnership Project)
Series 1996 DN
4.15%** 10/07/97 5,000 5,000,000
Cochise County Pollution Control
Solid Waste Disposal RB (Arizona
Electric Power Cooperative, Inc.
Project) Series 1994 MB
3.80% 03/01/98 2,000 2,000,000
Pima County IDA RB (Tuscon Electric
Power Co. Project) Series 1982 DN
4.10%** 10/07/97 3,000 3,000,000
------------
23,500,000
------------
CALIFORNIA--8.5%
California Statewide Communities
Development Solid Waste Facilities RB
(Chevron U.S.A., Inc. Project)
Series 1994 DN
4.00%** 10/01/97 100 100,000
Los Angeles County GO
Series 1997A TAN
4.50% 06/30/98 18,500 18,586,643
Oakland CTFS Partners RB
(Capital Equipment Project)
Series 1985 DN
4.20%** 10/07/97 700 700,000
State of California GO Series 1997 DN
4.00%** 10/07/97 14,100 14,100,000
------------
33,486,643
------------
COLORADO--1.5%
Colorado Housing Finance Authority
Multi-family Housing RB
Series 1996H DN
4.10%** 10/07/97 6,015 6,015,000
------------
DELAWARE--1.7%
Delaware Economic Development
Authority RB (Normaco Income
Project) Series 1984 DN
4.25%** 10/07/97 6,600 6,600,000
------------
FLORIDA--5.2%
Dade County RB (Youth Fair &
Exposition Project) Series 1995 DN
4.15%** 10/07/97 4,705 4,705,000
Sunshine State Governmental
Financing Commission
Commercial Paper Revenue
Notes (Government Financing
Program) Series 1997 MB
3.90% 12/09/97 9,720 9,720,000
Volusia County Health Facilities
Authority RB (SW Volusia Health
Project) Series 1994A DN
4.00%** 10/07/97 6,175 6,175,000
------------
20,600,000
------------
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
GEORGIA--2.9%
Burke County Pollution Control RB
(Oglethorpe Power Company
Project) Series 1997 DN
3.60%** 12/01/97 $ 2,000 $ 2,000,000
Clayton County Development
Authority RB (McIlrath Corp.
Project) Series 1986 DN
4.30%** 10/07/97 4,375 4,375,000
Fulton County Development
Authority RB (Georgia Tech
Athletic Association Project)
Series 1995 DN
4.15%** 10/07/97 3,500 3,500,000
Fulton County Development
Authority RB (The Alfred and
Adele Davis Academy Income
Project ) Series 1996 DN
4.15%** 10/07/97 1,500 1,500,000
------------
11,375,000
------------
IDAHO--0.6%
Idaho GO Series 1997 TAN
4.62% 06/30/98 2,500 2,513,357
------------
ILLINOIS--12.8%
Illinois Development Finance
Authority IDRB (6 West Hubbard
Street Project) Series 1986 DN
4.10%** 10/07/97 3,355 3,355,000
Illinois Development Finance
Authority IDRB (Foundation For
Safety & Health Project)
Series 1992 DN
4.10%** 10/07/97 5,250 5,250,000
Illinois Development Finance
Authority IDRB (Royal Continental
Box Co. Project) Series 1995A DN
4.40%** 10/07/97 900 900,000
Illinois Development Finance
Authority IDRB (Webster-Wayne
Shopping Center Project)
Series 1995 DN
4.10%** 10/07/97 3,810 3,810,000
Illinois Development Finance
Authority PCRB (Commonwealth
Edison Co. Project) Series 1986 DN
4.05%** 10/07/97 5,700 5,700,000
Illinois Development Finance
Authority PCRB (Commonwealth
Edison Co. Project) Series 1994C DN
4.15%** 10/07/97 2,000 2,000,000
Illinois Development Finance
Authority RB (Lasalle Foundation
Project) Series 1997 DN
4.05%** 10/07/97 4,000 4,000,000
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
(Victory Health Services Project)
Series 1989C MB
3.80% 10/21/97 5,600 5,600,000
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
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
4.15%** 10/07/97 1,260 1,260,000
Peoria Industrial Development RB
(Praise and Leadership Elementary
School Project) Series 1995 DN
4.25%** 10/07/97 2,865 2,865,000
Quad Cities Regional Economic
Development Authority RB
(Whitey's Ice Cream Manufacturing
Project) Series 1995 DN
4.25%** 10/07/97 1,870 1,870,000
Roselle Village IDRB (Abrasive-Form,
Inc. Project) Series 1995 DN
4.10%** 10/07/97 1,900 1,900,000
Tinley Park Multi-Family Housing
Mortgage RB (Edgewater Walk
Phase IIIA & IIIB Project)
Series 1994 DN
4.10%** 10/07/97 2,425 2,425,000
Village of Schiller Park IDRB
(Victor Products Corp. Project)
Series 1995 DN
4.50%** 10/07/97 600 600,000
------------
50,535,000
------------
INDIANA--1.6%
Marion RB (The Synectic Partnership
Project) Series 1997 DN
4.10%** 10/07/97 3,415 3,415,000
Monroe County IDRB (Griner
Engineering Project)
Series 1997 DN
4.25%** 10/07/97 2,945 2,945,000
------------
6,360,000
------------
KENTUCKY--2.8%
Jefferson County Kentucky Board of
Education GO Series 1997 RAN
3.86% 06/30/98 6,000 6,000,408
Maysville Solid Waste Disposal
Facilities RB (Inland Container Corp.
Project) Series 1992 MB
3.90% 10/24/97 5,000 5,000,000
------------
11,000,408
------------
LOUISIANA--0.3%
St. Charles Parish Pollution Control RB
(Shell Oil Co. Norco Project)
Series 1991 DN
4.00%** 10/01/97 1,000 1,000,000
------------
MARYLAND--8.0%
Anne Arundel County RB (Mountain
Ridge Apartments Project)
Series 1996D DN
4.00%** 10/01/97 6,325 6,325,000
Baltimore County RB (Paths At Loveton
Project) Series 1996 DN
3.95%** 10/07/97 5,720 5,720,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
MARYLAND (CONTINUED)
Baltimore County RB (Shade Tree Trace
Project) Series 1996 DN
4.00%** 10/07/97 $ 6,570 $ 6,570,000
Maryland Health & Higher
Educational Facilities Authority RB
(Helix Health Hospitals Project)
Series 1996A DN
4.10%** 10/07/97 5,000 5,000,000
Maryland Health & Higher
Educational Facilities Authority RB
(Pooled Loan Project)
Series 1985A DN
4.10%** 10/07/97 2,000 2,000,000
Maryland IDA Finance RB
(Brass Mill Road Limited Partnership
Facility Project) Series 1995 DN
4.25%** 10/07/97 3,665 3,665,000
Maryland IDA Finance RB (Patapsco
Associates Limited Partnership
Facility Project) Series 1995 DN
4.25%** 10/07/97 2,270 2,270,000
------------
31,550,000
------------
MICHIGAN--2.5%
Michigan State Building Authority
TECP Series 1997I
3.70% 10/09/97 8,000 8,000,000
Northville IDA RB (Thrifty Northville
Project) Series 1984 DN
4.17%** 10/07/97 2,000 2,000,000
------------
10,000,000
------------
MINNESOTA--1.5%
Becker Junior PCRB
(Northern States Power-Sherbourne
Generating Station Project)
Series 1993A MB
3.80% 12/16/97 5,900 5,900,000
------------
MISSISSIPPI--0.3%
Jackson IDRB (McCarty-Holman Co.
Project) Series 1985 DN
4.15%** 10/07/97 1,000 1,000,000
------------
MISSOURI--3.3%
Kansas City IDRB (Mid-America
Health Services Project)
Series 1984 DN
4.20%** 10/07/97 4,500 4,500,000
Missouri Environmental Improvement
& Energy Resource Authority RB
(Kansas City Power & Light Co.
Project) Series 1992 DN
4.10%** 10/07/97 5,900 5,900,000
Missouri Environmental Improvement
& Energy Resource Authority RB
(Monsanto Co. Project)
Series 1988 DN
4.15%** 10/07/97 2,700 2,700,000
------------
13,100,000
------------
MONTANA--0.3%
Forsyth PCRB
(Portland General Electric Co. Project)
Series 1983 DN
4.20%** 10/07/97 1,000 1,000,000
------------
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
NEBRASKA--0.5%
Nebraska Investment Finance
Authority Multifamily Loan RB
(Apple Creek Associates Project)
Series 1985A DN
3.80%** 10/07/97 $ 1,900 $ 1,900,000
------------
NEVADA--0.2%
Henderson Public Improvement Trust
RB (Berry Plastics Corp. Project)
Series 1991 DN
4.50%** 10/07/97 800 800,000
------------
NEW HAMPSHIRE--1.6%
New Hampshire Higher Educational
and Health Facilities Authority RB
(Hunt Community Issue Project)
Series 1996 DN
4.10%** 10/07/97 6,160 6,160,000
------------
NORTH CAROLINA--3.3%
Gastonia Certificates of Participation
(Equipment Financing Project)
Series 1997 DN
4.25%** 10/07/97 4,900 4,900,000
North Carolina Eastern Municipal Power
Agency TECP Series 1997
3.80% 12/10/97 6,500 6,500,000
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1996 DN
4.10%** 10/07/97 1,800 1,800,000
------------
13,200,000
------------
NORTH DAKOTA--0.8%
Mercer County Solid Waste Disposal
RB (National Rural Utilities Project)
Series 1995A MB
3.80% 03/01/98 3,100 3,100,000
------------
OHIO--5.9%
Clermont County Hospital Facilities
Authority RB (Mercy Health
Systems Project) Series 1994B DN
4.05%** 10/07/97 2,764 2,764,000
Hamilton County GO Series 1997 BAN
4.25% 06/12/98 6,010 6,024,049
Montgomery County Limited Obligation
RB (Society of St. Vincent de Paul
Project) Series 1996 DN
4.10%** 10/07/97 4,000 4,000,000
Ohio Higher Educational Facility
Community RB (Oberlin College
Project) Series 1985 DN
3.75%** 10/07/97 200 200,000
Parma GO Series 1997 BAN
4.95% 08/04/98 4,000 4,033,972
Toledo GO Series 1997 MB
4.50% 10/15/97 4,245 4,245,956
Youngstown IDRB (Portage Transformer
Company Project) Series 1996 DN
4.25%** 10/07/97 1,980 1,980,000
------------
23,247,977
------------
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
OKLAHOMA--4.0%
Muskogee Industrial Trust PCRB
(Oklahoma Gas and Electric
Project) Series 1995A DN
4.10%** 10/07/97 $ 2,000 $ 2,000,000
Muskogee Industrial Trust PCRB
(Oklahoma Gas and Electric
Project) Series 1997A DN
4.20%** 10/07/97 5,000 5,000,000
Oklahoma State Water Resource
Board State Loan Program RB
Series 1997 MB
3.75% 03/02/98 9,000 9,000,000
------------
16,000,000
------------
TENNESSEE--7.0%
Chattanooga IDRB (Southern Foundry
Supply, Inc. Project)
Series 1996 DN
4.25%** 10/07/97 1,400 1,400,000
Franklin IDRB (Franklin Oaks
Apartments Project)
Series 1996A DN
4.15%** 10/07/97 4,600 4,600,000
Memphis-Shelby County IDRB
(Ponderosa Fibres American
Project) Series 1995 DN
4.25%** 10/07/97 5,200 5,200,000
Montgomery County Public Building
Authority Pooled Financing RB
(Montgomery County Loan Project)
Series 1995 DN
4.10%** 10/07/97 5,000 5,000,000
Montgomery County Public Building
Authority Pooled Financing RB
(Tennessee County Loan Pool
Project) Series 1995 DN
4.10%** 10/07/97 8,500 8,500,000
Morristown Industrial Development
Board RB (Bos Automotive
Products, Inc. Project)
Series 1997 DN
4.25%** 10/07/97 2,000 2,000,000
Oak Ridge IDRB (Solid Waste M4
Environmental Project)
Series 1996 DN
4.25%** 10/07/97 900 900,000
------------
27,600,000
------------
TEXAS--7.1%
Angelina and Neches River Authority
Solid Waste Disposal RB
(Temple-Eastex, Inc. Project)
Series 1993 MB
3.90% 10/24/97 1,000 1,000,000
4.00% 01/26/98 5,000 5,000,000
Austin Higher Education Authority
RB (St. Edwards University Project)
Series 1995 DN
4.15%** 10/07/97 1,900 1,900,000
Bexar County Housing Finance Corp.
Multifamily Housing RB (Windridge
Apartments Project) Series 1996 DN
4.15%** 10/07/97 6,270 6,270,000
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
TEXAS (CONTINUED)
Brazos River Harbour Navigation
District PCRB (The Dow Chemical
Co. Project) Series 1993 DN
4.05%** 10/01/97 $ 2,000 $ 2,000,000
Mesquite Industrial Development
Corp. RB (Morrison Products, Inc.
Project) Series 1997 DN
4.10%** 10/07/97 4,000 4,000,000
State of Texas GO Series 1997 TRAN
4.75% 08/31/98 8,000 8,064,113
------------
28,234,113
------------
VIRGINIA--3.3%
Culpeper Town IDA Residential Care
Facility RB (Baptist Homes Project)
Series 1992 DN
4.10%** 10/07/97 1,415 1,415,000
Metropolitan Washington D.C. Airports
Authority Passenger Facility
Flexible Term Notes
3.95% 01/23/98 8,000 8,000,000
Roanoke IDA Hospital RB (Carillon
Health System Project)
Series 1995C DN
4.00%** 10/07/97 3,500 3,500,000
------------
12,915,000
------------
WASHINGTON--3.2%
King County TECP Series 1997A BAN
3.75% 11/19/97 5,000 5,000,000
King County Sewer RB
Series 1997A MB
3.70% 11/14/97 5,000 5,000,000
Yakima County Public Corporation
RB (Jeld-Wen Income Project)
Series 1988 DN
4.10%** 10/07/97 2,540 2,540,000
------------
12,540,000
------------
WEST VIRGINIA--0.1%
Marshall County PCRB
(PPG Industries, Inc. Project)
Series 1992 DN
4.35%** 10/07/97 500 500,000
------------
WISCONSIN--1.9%
Stevens Point Tax-Exempt Facilities
RB (Consolidated Paper Company
Project) Series 1997 DN
4.25%** 10/07/97 2,500 2,500,000
Wisconsin GO Series 1997 TRAN
4.50% 06/15/98 5,000 5,022,055
------------
7,522,055
------------
WYOMING--1.3%
Converse County Environmental
Improvement RB (Pacificorp, Inc.
Project) Series 1995 DN
4.15%** 10/07/97 5,300 5,300,000
------------
Value
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $394,554,553*) 99.9% $394,554,553
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 582,631
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 58,747,512
Institutional shares, 327,939,131
Service shares, 8,467,793
Investor A shares and 11,754
Investor C shares outstanding) 100.0% $395,137,184
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A AND
INVESTOR C SHARE
($395,137,184 (DIVIDE) 395,166,190) $1.00
=====
- -----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS--99.5%
NEW JERSEY--93.7%
Aberdeen Township GO
Series 1997 MB
4.20% 02/01/98 $ 640 $ 640,615
Bergen County GO Series 1996 DN
5.20%** 10/01/97 500 500,000
Bergen County GO Series 1997 MB
4.50% 07/15/98 1,755 1,763,708
Bergen County Utilities Authority Water
PCRB Series 1997A MB
3.50% 12/15/97 720 720,000
Burlington Township School District GO
Series 1997 MB
5.00% 03/01/98 480 482,446
Camden County Improvement Authority
RB (Jewish Community Center
Project) Series 1995 DN
3.85%** 10/01/97 1,035 1,035,000
Cape May County Municipal Utilities
Authority Sewer RB Series 1992 MB
5.60% 01/01/98 500 502,451
Carlstadt GO Series 1997 MB
4.75% 03/01/98 350 351,575
Cumberland County Guaranteed
Improvement Resource Recovery RB
Series 1991 MB
5.50% 01/01/98 1,000 1,004,189
Cumberland County Utilities Authority
Refunding RB Series 1997 MB
3.90% 03/01/98 195 195,000
Dover Township GO Series 1997 MB
5.00% 04/01/98 285 286,514
Edison Township GO Series 1993 MB
4.00% 01/01/98 300 300,212
Essex County GO Series 1997 MB
4.35% 07/15/98 345 346,446
Essex County Public Improvement
Authority RB (County Asset Sale
Project) Series 1995 DN
3.90%** 10/07/97 5,000 5,000,000
Evesham Township General
Improvment GO Series 1997A MB
4.80% 09/15/98 500 504,640
Evesham Township General
Improvement GO Series 1997B MB
4.80% 09/15/98 150 151,392
Gloucester County Refunding PCRB
(Mobil Oil Refining Co. Project)
Series 1993 DN
3.70%** 10/07/97 2,810 2,810,000
Hillside Township GO Series 1997 MB
4.70% 06/15/98 150 150,830
Hopewell Township GO Series 1997 BAN
4.25% 05/22/98 1,208 1,210,642
Irvington Township GO Series 1993 MB
3.90% 04/01/98 440 440,000
Margate City GO Series 1997 BAN
3.68% 03/04/98 2,630 2,630,312
Mercer County Improvement Authority
RB (Pooled Government Loan Project)
Series 1985 DN
3.80%** 10/07/97 2,900 2,900,000
Millburn Township GO Series 1996 MB
4.60% 11/15/97 400 400,416
Monroe Township GO Series 1996 BAN
4.00% 02/25/98 1,602 1,604,200
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
Montclair General Improvement GO
Series 1997 MB
4.90% 01/01/98 $ 190 $ 190,605
Morris County GO Series 1996 BAN
3.57% 12/11/97 1,000 1,000,131
Morristown GO Series 1997 TAN
4.25% 02/13/98 2,600 2,602,774
New Jersey Economic Development
Authority IDRB (Union Ave
Association Project) Series 1986 DN
3.75%** 10/01/97 4,900 4,900,000
New Jersey Economic Development
Authority PCRB (Public Service
Electric & Gas Company)
Series 1995A DN
3.70%** 10/07/97 700 700,000
New Jersey Economic Development
Authority PCRB (Public Service
Electric & Gas Company)
Series 1996 DN
3.65%** 10/07/97 3,200 3,200,000
New Jersey Economic Development
Authority RB (Danic Urban Renewal
Project) Series 1985 DN
4.00%** 10/07/97 1,850 1,850,000
New Jersey Economic Development
Authority RB (East Meadow Corp.
Project) Series 1986B DN
4.20%** 10/07/97 4,770 4,770,000
New Jersey Economic Development
Authority RB (Keystone Project)
Series 1992 MB
3.75% 10/17/97 3,000 3,000,000
New Jersey Economic Development
Authority RB (Local Housing Project)
Series 1992D-1 DN
4.10%** 10/07/97 1,820 1,820,000
New Jersey Economic Development
Authority RB (Manhattan Bagel
Company, Inc. Project)
Series 1995 DN
3.95%** 10/07/97 900 900,000
New Jersey Economic Development
Authority RB (Nandan Co. Project)
Series 1995 DN
4.05%** 10/07/97 2,260 2,260,000
New Jersey Economic Development
Authority RB (Russell Berrie
Company Project) Series 1983 DN
3.60%** 10/01/97 200 200,000
New Jersey Economic Development
Authority RB (Venice Maid Foods
Project) Series 1997 DN
4.05%** 10/07/97 1,000 1,000,000
New Jersey Economic Development
Authority RB (Winchester Gardens;
Ward Homestead Project)
Series 1995B DN
3.70%** 10/07/97 6,440 6,440,000
New Jersey Economic Development
Authority RB (Wood Hollow Associates
Project) Series 1997 DN
4.05%** 10/07/97 2,585 2,585,000
New Jersey Economic Development
Authority Thermal Energy Facilities
RB (Thermal Energy, L.P. Project)
Series 1995 MB
3.85% 11/13/97 1,500 1,500,000
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
New Jersey Economic Development
Authority Water Facilities RB
(Elizabethtown Water Co. Project)
Series 1997B DN
3.65%** 10/07/97 $ 3,400 $ 3,400,000
New Jersey Educational Facilities
Authority RB (Drew University Project)
Series 1997B MB
4.00% 03/01/98 270 270,322
New Jersey Sports and Exposition
Authority RB Series 1992C DN
3.85%** 10/07/97 13,350 13,350,000
New Jersey State Higher Education
Assistance Authority Student Loan
RB (New Jersey Class Loan Program
Project) Series 1997B MB
3.90% 06/01/98 1,400 1,400,000
New Jersey Transportation Trust Fund
Authority Trust Receipts RB
(Transportation System Project)
Series 1996A DN
4.15%** 10/07/97 7,500 7,500,000
New Jersey Turnpike Authority RB
Series 1991D DN
3.55%** 10/07/97 1,400 1,400,000
Newark GO Series 1993 TAN
4.40% 10/01/97 400 400,000
Newark Water Utility RB Series 1996 MB
5.50% 10/01/97 377 377,000
North Brunswick GO Series 1993 MB
4.00% 10/01/97 210 210,000
North Caldwell GO Series 1997 BAN
4.12% 06/12/98 999 1,000,890
Paramus GO Series 1997 BAN
3.82% 08/13/98 3,000 3,000,495
Park Ridge GO Series 1997 MB
4.55% 08/01/98 195 196,182
Parsippany-Troy Hills Township GO
Series 1996 BAN
4.25% 10/31/97 2,000 2,000,776
Passaic County Utilities Authority
1997B RAN
3.90% 08/04/98 1,800 1,800,000
Passaic Valley Sewer Authority
Prerefunded RB Series 1990C MB
7.10% 10/01/97 5,000 5,127,074
Peapack Gladstone GO Series 1997 BAN
4.25% 05/14/98 2,698 2,702,783
Plainsboro Township GO Series 1997 BAN
4.50% 05/19/98 1,443 1,448,106
Randolf Township GO Series 1997 BAN
3.82% 06/19/98 1,000 1,000,200
Readington Township GO Series 1997 MB
5.12% 04/15/98 220 221,153
Ringwood Borough GO Series 1997 BAN
4.25% 03/20/98 1,457 1,459,327
Roselle GO Series 1997 MB
4.95% 02/15/98 310 311,527
Salem County Industrial Pollution
Control Financing Authority RB
(E.I. DuPont de Nemours &
Company Project) Series 1982A DN
3.60%** 10/07/97 3,900 3,900,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
Salem County Pollution Control Financing
Authority PCRB (Atlantic City Electric
Co. Project) Series 1997A DN
3.75%** 10/07/97 $ 1,200 $ 1,200,000
Salem County Pollution Control
Financing Authority PCRB
(Atlantic City Electric Co. Project)
Series 1997B DN
3.85%** 10/07/97 1,000 1,000,000
Salem County Pollution Control
Financing Authority Refunding PCRB
(Public Service Electric and Gas
Project) Series 1997 DN
4.05%** 10/07/97 1,500 1,500,000
Somerset County GO Series 1988B MB
6.50% 11/01/97 230 230,561
Union Township Public Improvement
GO Series 1996 MB
4.50% 12/01/97 303 303,400
Woodcliff Lake School District Unlimited
GO Series 1997 MB
5.00% 02/15/98 150 150,795
Wyckoff Township School District GO
Series 1996 MB
4.60% 01/15/98 500 501,231
------------
122,210,920
------------
NEW YORK--4.3%
Port Authority of New York and New Jersey
Series 1997 TECP
3.55% 10/24/97 1,400 1,400,000
3.65% 11/20/97 3,080 3,080,000
3.75% 12/17/97 1,055 1,055,000
------------
5,535,000
------------
PUERTO RICO--1.5%
Puerto Rico Government
Development Bank RB
Series 1997 MB
3.65% 10/22/97 2,000 2,000,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $129,745,920*) 99.5% 129,745,920
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.5% 671,492
------ ------------
NET ASSETS (Equivalent to
$1.00 per share based on 7,432,452
Institutional shares, 101,316,579
Service shares and 21,687,102
Investor A shares outstanding) 100.0% $130,417,412
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($130,417,412 (DIVIDE) 130,436,133) $1.00
=====
- ----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS--99.7%
NORTH CAROLINA--97.8%
Bladen County Industrial Facilities
and Pollution Control Financing
Authority Resource Recovery RB
(BCH Energy, L.P. Project)
Series 1993 DN
4.30%** 10/07/97 $ 1,900 $ 1,900,000
Buncombe County GO
Series 1997 DN
4.05%** 10/07/97 6,000 6,000,000
Catawba County Industrial Facilities
and Pollution Control Financing
Authority IDRB (WSMP Inc. Project)
Series 1992 DN
4.25%** 10/07/97 500 500,000
Charlotte Airport Refunding RB
Series 1993A DN
4.10%** 10/07/97 1,000 1,000,000
Charlotte Airport Refunding RB
Series 1997A DN
4.20%** 10/07/97 5,300 5,300,000
Charlotte-Mecklenburg Hospital
Authority RB (Health Care System
Project) Series 1996B DN
4.00%** 10/07/97 1,250 1,250,000
Durham GO Series 1993 DN
4.15%** 10/07/97 5,635 5,635,000
Gaston County GO Series 1997 DN
5.25%** 05/01/98 1,200 1,209,476
Green County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Federal Paper
Board Co., Inc. Project)
Series 1989 DN
4.25%** 10/07/97 1,100 1,100,000
Green County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Snow Hill Tape
Corp. Project) Series 1995 DN
4.25%** 10/07/97 2,000 2,000,000
Greensboro Certificates of
Participation (Greensboro Coliseum
Complex Improvement Project)
Series 1995A DN
4.15%** 10/07/97 2,000 2,000,000
Guilford County Industrial Facilities
and Pollution Control Financing
Authority IDRB (U.S. Label Corp.
Project) Series 1995 DN
4.25%** 10/07/97 2,500 2,500,000
Haywood Regional Medical Center
RB Series 1997 DN
3.80%** 10/07/97 2,000 2,000,000
Holly Springs Park and Recreation
Facilities GO Series 1997 BAN
4.00% 12/17/97 2,000 2,000,857
Iredell County Industrial Facilities
and Pollution Control Financing
Authority RB (Purina Mills, Inc.
Project) Series 1995 DN
4.10%** 10/07/97 4,000 4,000,000
Lee County GO Series 1997 MB
4.80% 04/01/98 1,250 1,257,280
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Lee County Industrial Facilities
and Pollution Control Financing
Authority Refunding IDRB
(Trion, Inc. Project) Series 1995 DN
4.15%** 10/07/97 $ 1,700 $ 1,700,000
Mecklenburg County Industrial
Facilities and Pollution Control
Financing Authority IDRB (Otto
Industries, Inc. Project)
Series 1988 DN
4.25%** 10/07/97 2,950 2,950,000
Mecklenburg County Industrial
Facilities and Pollution Control
Financing Authority IDRB
(Aplix, Inc. Project) Series 1996 DN
4.25%** 10/07/97 5,200 5,200,000
Mecklenburg County Industrial
Facilities and Pollution Control
Financing Authority IDRB
(Griffith Micro Science Project)
Series 1995 DN
4.10%** 10/07/97 1,500 1,500,000
New Hanover County Industrial
Facilities IDRB (Interroll Corp.
Project) Series 1989 DN
4.25%** 10/02/97 1,295 1,295,000
North Carolina Agricultural Finance
Authority Agricultural Development
RB (Harvey Fertilizer & Gas Co.
Project) Series 1995 DN
4.25%** 10/07/97 1,740 1,740,000
North Carolina Eastern Municipal
Power Agency Power System RB
Series 1988B TECP
3.60% 11/19/97 3,600 3,600,000
3.65% 12/11/97 1,190 1,190,000
North Carolina Eastern Municipal
Power Agency Prerefunded RB
Series 1988 MB
8.00% 01/01/98 4,672 4,815,024
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1991B DN
4.00%** 10/07/97 200 200,000
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1992A DN
4.00%** 10/07/97 5,800 5,800,000
North Carolina Educational Facilities
Finance Agency RB (Elon College
Project) Series 1997 DN
4.10%** 10/07/97 800 800,000
North Carolina Educational Facilities
Finance Agency RB (Gardner-Webb
University Project) Series 1997 DN
4.00%** 10/07/97 2,500 2,500,000
North Carolina Educational Facilities
Finance Agency RB (Guilford College
Project) Series 1997 DN
4.05%** 10/07/97 3,000 3,000,000
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1990 DN
4.10%** 10/07/97 3,800 3,800,000
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1996 DN
4.10%** 10/07/97 $ 400 $ 400,000
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
4.05%** 10/07/97 5,200 5,200,000
North Carolina Medical Care
Commission Hospital RB (Baptist
Hospital Project) Series 1996 DN
4.05%** 10/07/97 5,700 5,700,000
North Carolina Medical Care
Commission Hospital RB
(Moses H. Cone Memorial Hospital
Project) Series 1993 DN
4.05%** 10/07/97 5,800 5,800,000
North Carolina Medical Care
Commission Hospital RB
(Moses H. Cone Memorial Hospital
Project) Series 1995 DN
4.05%** 10/07/97 1,700 1,700,000
North Carolina Medical Care
Commission Hospital RB
(Park Ridge Hospital Project)
Series 1988 DN
4.10%** 10/07/97 400 400,000
North Carolina Medical Care
Commission Hospital RB (Pooled
Equipment Financing Project)
Series 1985 DN
3.85%** 10/07/97 4,700 4,700,000
North Carolina Medical Care
Commission Hospital RB (Pooled
Financing Project) Series 1994 DN
3.80%** 10/07/97 1,800 1,800,000
North Carolina Municipal Power Agency
Number 1 RB (Catawba Project)
Series 1988 MB
7.62% 01/01/98 1,930 1,986,018
North Carolina Municipal Power Agency
Number 1 Refunded RB (Catawba
Project) Series 1988 MB
7.87% 01/01/98 1,150 1,185,154
North Carolina Municipal Power Agency
Number 1 RB (Catawba Project)
Series 1997 TECP
3.80% 10/09/97 1,500 1,500,000
3.70% 11/20/97 4,000 4,000,000
3.75% 11/21/97 2,600 2,600,000
3.75% 12/05/97 2,000 2,000,000
North Carolina State GO
Series 1997A MB
5.10% 03/01/98 8,000 8,048,564
Person County Industrial Facilities
and Pollution Control Financing Authority
RB (Carolina Power & Light Co.
Project) Series 1992A DN
4.20%** 10/07/97 1,200 1,200,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Person County Industrial Facilities
and Pollution Control Financing
Authority Solid Waste Disposal RB
(Carolina Power & Light Co. Project)
Series 1986 DN
4.15%** 10/01/97 $10,300 $ 10,300,000
Raleigh-Durham Airport Authority
Special Facility Refunding RB
(American Airlines Inc. Project)
Series 1995A DN
3.90%** 10/01/97 2,750 2,750,000
Raleigh-Durham Airport Authority
Special Facility Refunding RB
(American Airlines Inc. Project)
Series 1995B DN
3.90%** 10/01/97 1,000 1,000,000
Sampson County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Dubose Strapping,
Inc. Project) 1997 DN
4.10%** 10/07/97 1,800 1,800,000
Union County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Rock-Tenn Converting Co.
Project) Series 1997 DN
4.25%** 10/07/97 1,750 1,750,000
University of North Carolina Chapel
Hill School of Medicine RB
(Ambulatory Care Clinic Project)
Series 1990 DN
4.00%** 10/07/97 1,900 1,900,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
Refunding RB (Carolina Power &
Light Co. Project) Series 1990A TECP
3.70% 10/29/97 5,500 5,500,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Co.
Project) Series 1985A DN
4.10%** 10/07/97 1,700 1,700,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Co.
Project) Series 1985B DN
4.15%** 10/07/97 6,500 6,500,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Co.
Project) Series 1985C DN
4.15%** 10/07/97 1,400 1,400,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power & Light Co.
Project) Series 1987 DN
3.95%** 10/01/97 1,600 1,600,000
Wilson County Industrial Facilities and
Pollution Control Financing Authority
IDRB (North Carolina Chip Co.
Project) Series 1989 DN
4.25%** 10/07/97 800 800,000
Winston-Salem Certificates of
Participation (Risk Acceptance
Management Corp. Project)
Series 1988 DN
4.10%** 10/07/97 460 460,000
------------
167,957,373
------------
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PUERTO RICO--1.9%
Puerto Rico Government
Development Bank Refunding RB
Series 1985 DN
3.70%** 10/07/97 $ 200 $ 200,000
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, Tourist,
Educational, Medical and
Environmental Control Facilities RB
(Inter-American University Project)
Series 1994 MB
3.80% 10/08/97 1,500 1,500,000
------------
3,200,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $171,157,373*) 99.7% 171,157,373
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.3% 508,248
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 147,658,005
Institutional shares, 23,704,131
Service shares and 303,606
Investor A shares outstanding) 100.0% $171,665,621
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($171,665,621 (DIVIDE) 171,665,742) $1.00
=====
- -----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS--99.5%
OHIO--99.5%
Belmont County GO Series 1996 BAN
3.96% 10/01/97 $1,000 $ 1,000,000
4.12% 11/25/97 1,400 1,400,548
Belmont County GO Series 1997B BAN
3.92% 10/01/97 1,900 1,900,000
Brecksville GO Series 1997 BAN
4.15% 10/29/97 750 750,196
Butler County GO Series 1996 BAN
4.20% 10/30/97 750 750,230
Butler County GO Series 1997 BAN
4.10% 03/20/98 1,000 1,001,793
Cleveland Waterworks GO First
Mortgage Bonds Series 1992A MB
5.30% 01/01/98 1,000 1,004,045
Cuyahoga County IDRB
(Pleasant Lake Associates Project)
Series 1995 DN
4.10%** 10/07/97 945 945,000
Delaware County IDRB (Air Waves, Inc
Project) Series 1995 DN
4.25%** 10/07/97 935 935,000
East Palestine GO Series 1997 BAN
3.93% 08/28/98 1,000 1,000,000
Erie County IDRB (Brighton Manor Co.
Project) Series 1986 DN
4.25%** 10/07/97 3,700 3,700,000
Franklin County IDRB (Alco Standard
Corp. Project) Series 1994 DN
4.15%** 10/07/97 2,000 2,000,000
Greene County Economic Development
RB (Ashford Center Project)
Series 1995 DN
4.15%** 10/07/97 2,115 2,115,000
Greene County GO Series 1997 BAN
4.10% 03/26/98 1,630 1,632,497
Greene County IDRB (AFC Stamping &
Production, Inc., Barsplice Products
Project) Series 1995 DN
4.25%** 10/07/97 1,000 1,000,000
Greene County IDRB (Antioch
Publishing Co. Project)
Series 1996 DN
4.25%** 10/07/97 2,600 2,600,000
Hamilton County GO Series 1997 BAN
4.25% 06/12/98 1,730 1,734,044
Hamilton Electric System Mortgage RB
Series 1992A MB
4.75% 10/15/97 500 500,224
Hilliard City GO Series 1997 BAN
4.15% 09/10/98 1,100 1,102,986
Lorain County Community College
District GO Series 1997 TAN
6.00% 12/01/97 535 537,124
Lucas County IDRB (Vega Industries,
Inc. Project) Series 1995 DN
4.25%** 10/07/97 2,090 2,090,000
Mason City School District School
Improvement Unlimited Tax GO
Series 1997 BAN
4.45% 03/20/98 2,000 2,006,438
Medina County Housing RB
(The Oaks At Medina Project)
Series 1997B DN
4.15%** 10/07/97 2,600 2,600,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Montgomery County Economic
Development Authority RB
(Dayton Art Institute Project)
Series 1996 DN
4.10%** 10/07/97 $ 600 $ 600,000
Montgomery County Health Facilities
RB (Sisters of Charity Health Care
Project) Series 1995 DN
4.10%** 10/07/97 1,400 1,400,000
Montgomery GO Series 1996 BAN
4.00% 12/12/97 3,000 3,002,281
Newark GO Series 1997 BAN
4.00% 03/13/98 1,275 1,276,644
Ohio Air Quality Development
Authority PCRB (JMG Funding, Ltd.
Partnership Project)
Series 1995B DN
4.15%** 10/07/97 2,000 2,000,000
Ohio Air Quality Development
Authority PCRB (Ohio Edison Co.
Project) Series 1988B MB
4.10% 05/01/98 1,800 1,800,000
Ohio Air Quality Development
Authority PCRB (Pennsylvania
Power Co. Project) Series 1997 DN
4.10%** 10/07/97 1,300 1,300,000
Ohio Air Quality Development
Authority PCRB (PPG Industries,
Inc. Project) Series 1988A DN
4.35%** 10/07/97 4,800 4,800,000
Ohio Air Quality Development
Authority PCRB (Timken Co.
Project) Series 1992 DN
4.15%** 10/01/97 2,300 2,300,000
Ohio Air Quality Development
Authority PCRB (USX Project)
Series 1995 MB
3.75% 01/15/98 2,115 2,115,000
Ohio Housing Finance Agency
Multi-Family Housing RB (Lincoln
Park Association Project)
Series 1985 MB
3.90% 11/01/97 690 690,000
Ohio Housing Finance Agency
Multi-Family Housing RB
(The Club at Spring Valley
Apartments Project)
Series 1996A DN
4.10%** 10/07/97 4,500 4,500,000
Ohio Housing Finance Authority
Residential Mortgage RB
Series 1997A MB
3.65% 03/02/98 5,000 5,000,000
Ohio IDRB (Anomatic Corp.
Project) Series 1994 DN
4.25%** 10/02/97 1,350 1,350,000
Ohio IDRB (Ashley Ward, Inc.
Project) Series 1997 DN
4.35%** 10/07/97 2,000 2,000,000
Ohio State Solid Waste Disposal
RB (USG Corp. Project)
Series 1997 DN
4.00%** 10/07/97 3,000 3,000,000
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Ohio Water Authority Solid Waste
Disposal RB (American Steel &
Wire Corp. Project) Series 1995 DN
4.30%** 10/07/97 $8,100 $ 8,100,000
Ohio Water Development Authority
Refunding RB (Timken Co. Project)
Series 1992 DN
4.15%** 10/07/97 3,000 3,000,000
Portage County IDRB (Action Super
Abrasive Project) Series 1996 DN
4.25%** 10/07/97 1,170 1,170,000
Portage County IDRB (Lovejoy
Industries Project) Series 1994 DN
4.30%** 10/07/97 1,475 1,475,000
Solon IDRB (Cleveland Twist Drill Co.
Project) Series 1995 DN
4.30%** 10/07/97 1,800 1,800,000
Stark County GO Series 1996 BAN
4.10% 10/16/97 1,000 1,000,091
Strongsville GO Series 1996 BAN
3.90% 12/18/97 1,000 1,000,515
Strongsville IDRB (Web Plastics
Company Project) Series 1997 DN
4.25%** 10/07/97 1,370 1,370,000
Summit County IDRB (Austin Printing
Co., Inc. Project) Series 1994 DN
4.25%** 10/07/97 545 545,000
Summit County IDRB (Forest
Manufacturing Project)
Series 1994 DN
4.20%** 10/02/97 500 500,000
Toledo Ohio City School District GO
Series 1997 BAN
4.20% 01/30/98 1,419 1,421,686
Trumbull County IDRB (ATD Corp.
Project) Series 1995 DN
4.25%** 10/07/97 1,910 1,910,000
University of Cincinnati GO
Series 1997 BAN
4.04% 03/19/98 1,280 1,281,971
University of Cincinnati GO
Series 1997Y BAN
4.24% 03/19/98 1,250 1,251,621
------------
Value
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $97,264,934*) 99.5% $ 97,264,934
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.5% 509,937
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 23,742,700
Institutional shares, 58,167,692
Service shares and 15,876,827
Investor A shares outstanding) 100.0% $ 97,774,871
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($97,774,871 (DIVIDE) 97,787,219) $1.00
=====
- ----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS--99.9%
PENNSYLVANIA--93.4%
Allegheny County RB (United States
Steel Corp. Project)
Series 1985 MB
3.70% 11/10/97 $ 5,000 $ 5,000,000
Allegheny County Higher Education
Building Authority RB (University
of Pittsburgh Project)
Series 1985C DN
3.95%** 10/07/97 1,990 1,990,000
Allegheny County Hospital
Development Authority RB
(Allegheny General Hospital Project)
Series 1995B DN
4.00%** 10/01/97 3,700 3,700,000
4.00%** 10/07/97 5,100 5,100,000
Allegheny County IDA RB
(United Mobile Video Project)
Series 1997 DN
4.15%** 10/02/97 2,000 2,000,000
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 Redevelopment Authority
Multi-Family Housing Refunding
RB (Arcadia Associates Project)
Series 1990 DN
4.35%** 10/07/97 6,000 6,000,000
Beaver County IDA RB (Duquesne
Light Co.; Beaver Valley Poject)
Series 1990C MB
3.65% 10/31/97 930 930,000
Beaver County IDA PCRB (Duquesne
Light Co. Beaver Valley Project)
Series 1997 MB
3.80% 11/21/97 2,500 2,500,000
3.85% 11/21/97 9,400 9,400,000
3.70% 12/19/97 1,000 1,000,000
3.75% 01/23/98 1,000 1,000,000
Beaver County IDA Refunding PCRB
(Atlantic Richfield Co. Project)
Series 1995 DN
4.15%** 10/07/97 8,400 8,400,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co.; Beaver Valley
Project) Series 1990A DN
4.05%** 10/07/97 3,300 3,300,000
Beaver County IDA Refunding PCRB
(Toledo Edison Project)
Series 1992E TECP
3.70% 12/04/97 10,000 10,000,000
Beaver County IDA Environmental
Improvement RB (BASF Corp.
Project) DN
4.10%** 10/07/97 1,900 1,900,000
Bedford County IDA IDRB (Sepa, Inc.
Facility Project) Series 1985 DN
3.85%** 10/07/97 3,000 3,000,000
Bentworth School District GO
Series 1997 MB
3.75% 03/15/98 310 310,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Berks County IDA RB (Beacon
Container Corp. Project)
Series 1997A DN
3.75%** 10/01/97 $ 2,600 $ 2,600,000
Berks County IDA RB (Continental
Assurance Co. Project)
Series 1982 DN
3.80%** 10/07/97 7,000 7,000,000
Berks County IDA Commercial
Development Refunding RB
(Sixth and Penn Street Project)
Series 1988 DN
4.15%** 10/07/97 200 200,000
Berks County IDA Manufacturing
Facilities RB (Grafika Commercial
Printing, Inc. Project) Series 1995 DN
4.25%** 10/07/97 1,045 1,045,000
Berks County IDA RB (Citizens
Utilities Co. Project) Series 1996 MB
3.80% 10/24/97 4,200 4,200,000
Berks County IDA RB (Lutheran
Home at Topton Project)
Series 1995 DN
4.05%** 10/07/97 1,800 1,800,000
Berks County IDA RB (Richard J.
Caron Foundation Project)
Series 1996 DN
4.05%** 10/01/97 2,000 2,000,000
Bucks County IDA Environmental
Refunding RB (USX Corp. Project)
Series 1995 MB
3.75% 01/15/98 2,360 2,360,000
Bucks County IDA RB (SHV Real
Estate, Inc. Project)
Series 1985 DN
3.90%** 10/07/97 2,200 2,200,000
Bucks County IDA Refunding RB
(Sundstrand Corp. Project)
Series 1991 DN
4.15%** 10/07/97 1,505 1,505,000
Cambria County IDA Resource
Recovery RB (Cambria Cogen Co.
Project) Series 1989V-1 DN
4.15%** 10/07/97 24,500 24,500,000
Cambria County IDA Resource
Recovery RB (Cambria Cogen Co.
Project) Series 1989V-2 DN
4.15%** 10/07/97 4,300 4,300,000
Cambria County IDA Resource
Recovery RB (Cambria Cogen Co.
Project) Series 1991V-1 DN
4.15%** 10/07/97 700 700,000
Carbon County IDA Resource
Recovery RB (Panther Creek
Partners Project) Series 1990A MB
3.85% 11/21/97 3,200 3,200,000
3.70% 12/19/97 10,000 10,000,000
3.80% 02/27/98 8,355 8,355,000
Carbon County IDA Resource
Recovery RB (Panther Creek
Partners Project) Series 1990B MB
3.70% 12/19/97 4,725 4,725,000
Carbon County IDA Resource
Recovery RB (Panther Creek
Partners Project) Series 1991 MB
3.85% 11/21/97 300 300,000
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Carbon County IDA Resource
Recovery RB (Panther Creek
Partners Project) Series 1991A MB
3.70% 12/19/97 $ 4,535 $ 4,535,000
Carbon County IDA Resource
Recovery RB (Panther Creek
Partners Project) Series 1997 MB
3.80% 12/19/97 1,545 1,545,000
Cumberland County IDA IDRB
(Lane Enterprises, Inc. Project)
Series 1994 DN
4.25%** 10/07/97 830 830,000
Cumberland County Municipal
Authority RB (Presbyterian Homes
Project) Series 1993A DN
4.10%** 10/07/97 6,000 6,000,000
Delaware County RB (Philadelphia
Electric Co. Project) Series 1997 MB
3.80% 10/10/97 3,600 3,600,000
Delaware County IDA Airport
Facilities RB (United Parcel Service
Project) Series 1985 DN
3.80%** 10/01/97 2,900 2,900,000
Delaware County IDA PCRB
(B.P. Oil, Inc. Project)
Series 1985 DN
3.90%** 10/01/97 300 300,000
Delaware County IDA PCRB
(B.P. Oil, Inc. Project)
Series 1995 DN
3.90%** 10/01/97 650 650,000
Delaware County IDA Refunding
PCRB (PECO Energy Project)
Series 1993A DN
3.75%** 10/07/97 3,000 3,000,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984A DN
4.00%** 10/07/97 100 100,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984B DN
4.00%** 10/07/97 1,500 1,500,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984D DN
4.00%** 10/07/97 300 300,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984E DN
4.00%** 10/07/97 1,595 1,595,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985B DN
4.15%** 10/07/97 3,000 3,000,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1986 DN
4.15%** 10/07/97 5,225 5,225,000
Elk County IDA Solid Waste RB
(Williamette Industries, Inc. Project)
Series 1992 DN
4.20%** 10/07/97 13,000 13,000,000
Emmaus General Authority RB Pooled
Loan Series 1989B-15 DN
4.15%** 10/07/97 2,100 2,100,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Emmaus General Authority RB Pooled
Loan Series 1989B-17 DN
4.15%** 10/07/97 $ 7,000 $ 7,000,000
Emmaus General Authority RB Pooled
Loan Series 1989F-10 DN
4.15%** 10/07/97 1,000 1,000,000
Emmaus General Authority RB Pooled
Loan Series 1989G-1 DN
4.15%** 10/07/97 7,100 7,100,000
Emmaus General Authority RB Pooled
Loan Series 1989G-9 DN
4.15%** 10/07/97 1,300 1,300,000
Emmaus General Authority RB Pooled
Loan Series 1989H-6 DN
4.20%** 10/07/97 2,800 2,800,000
Emmaus General Authority RB Pooled
Loan Series 1989H-8 DN
4.15%** 10/07/97 400 400,000
Emmaus General Authority RB Pooled
Loan Series 1996 DN
4.05%** 10/07/97 4,500 4,500,000
Erie County RB (Reed Manufacturing
Project) Series 1997 DN
3.95%** 10/07/97 1,500 1,500,000
Geisinger Authority Health System RB
Series 1992B DN
3.90%** 10/01/97 2,000 2,000,000
Indiana County IDA RB (Conemaugh
Project) Series 1997A DN
4.15%** 10/07/97 10,100 10,100,000
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1984 DN
3.75%** 10/07/97 800 800,000
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1985A DN
3.90%** 10/07/97 1,300 1,300,000
Lehigh County Sewer Authority RB
Series 1985B DN
4.10%** 10/07/97 1,970 1,970,000
Lehigh County Water Authority RB
Series 1984 DN
4.10%** 10/07/97 2,345 2,345,000
Littlestown IDA Refunding RB
(Hanover House Industries Project)
Series 1987 DN
4.10%** 10/07/97 8,000 8,000,000
Monroe County IDA (United Steel
Enterprises Project)
Series 1996A DN
4.25%** 10/07/97 1,990 1,990,000
Montgomery County GO
Series 1996 DN
3.75%** 10/07/97 1,400 1,400,000
Montgomery County Higher Education
and Health Authority Hospital RB
Series 1988 DN
4.10%** 10/07/97 3,000 3,000,000
Montgomery County Higher Education
and Health Authority RB
(Penn H. E. & Health Loan Program)
Series 1997A DN
4.05%** 10/07/97 2,000 2,000,000
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 SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Montgomery County IDA IDRB (Three
Valley Square Associates Project)
Series 1987 DN
4.15%** 10/07/97 $ 2,800 $ 2,800,000
Montgomery County IDA
Manufacturing Facilities RB
(H.P. Cadwallander, Inc. Project)
Series 1995 DN
4.25%** 10/07/97 900 900,000
Montgomery County IDA RB (Apple
Fresh Foods, Ltd. Project)
Series 1996 DN
4.25%** 10/07/97 1,000 1,000,000
Montgomery County IDA RB
(One Valley Square Project)
Series 1985 DN
4.15%** 10/07/97 1,800 1,800,000
Montgomery County IDA RB
(PECO Energy Project)
Series 1997 DN
3.90%** 10/02/97 2,490 2,489,996
Northampton County IDA IDRB
(Citizens Utilities Project)
Series 1991 MB
3.75% 10/08/97 2,000 2,000,000
3.80% 10/24/97 2,000 2,000,000
Northampton County IDA IDRB
(Citizens Utilities Project)
Series 1996 DN
4.00%** 10/07/97 8,375 8,375,000
Northeastern Hospital and
Education Authority Health Care
RB (Wyoming Valley Health Care
Project) Series 1994A DN
4.05%** 10/07/97 9,100 9,100,000
Northeastern Hospital and
Education Authority RB
(Allhealth Pooled Financing Program)
Series 1996 DN
4.15%** 10/07/97 12,000 12,000,000
Northumberland County IDA RB
(Furman Farms, Inc. Project)
Series 1995A DN
4.25%** 10/07/97 1,225 1,225,000
Northumberland County IDA
Resource Recovery RB (Foster
Wheeler Mt. Carmel Project)
Series 1987A DN
4.15%** 10/07/97 3,805 3,805,000
Northumberland County IDA
Resource Recovery RB (Foster
Wheeler Mt. Carmel Project)
Series 1987B DN
4.15%** 10/07/97 590 590,000
Oil City School District BAN
Series 1997 MB
3.95% 08/27/98 1,000 1,000,000
Pennsylvania BAN
Series 1997A TECP
3.50% 10/09/97 2,200 2,200,000
Pennsylvania Economic Development
Financing Authority RB (Wendt
Dunnington Co. Project)
Series 1995 DN
4.05%** 10/07/97 1,080 1,080,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Pennsylvania Economic
Development Financing
Authority Retirement Facility RB
(Homewood Retirement Centers
Project) Series 1992 DN
3.84%** 10/07/97 $ 6,200 $ 6,200,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1986 DN
4.20%** 10/07/97 11,860 11,860,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1988 DN
4.20%** 10/07/97 2,900 2,900,000
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986A DN
4.20%** 10/01/97 12,750 12,750,000
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986C DN
4.20%** 10/07/97 3,800 3,800,000
Pennsylvania Higher Education
Assistance Agency Student Loan
RB Series 1988A DN
4.10%** 10/07/97 1,300 1,300,000
Pennsylvania Higher Education
Assistance Agency Student Loan
RB Series 1988B DN
4.10%** 10/07/97 10,000 10,000,000
Pennsylvania Higher Education
Assistance Agency Student Loan
RB Series 1988C DN
4.10%** 10/07/97 1,700 1,700,000
Pennsylvania Higher Education
Assistance Agency Student Loan
RB Series 1988E DN
4.10%** 10/07/97 100 100,000
Pennsylvania Higher Education
Assistance Agency Student Loan
RB Series 1994A DN
4.10%** 10/01/97 22,750 22,750,000
Pennsylvania Higher Education
Assistance Agency Student Loan
RB Series 1995A DN
4.10%** 10/07/97 3,000 3,000,000
Pennsylvania Higher Educational
Facilities Authority RB (Carnegie
Mellon University Project)
Series 1995C DN
3.90%** 10/07/97 1,400 1,400
Pennsylvania Higher Educational
Facilities Authority College and
University RB (Pennsylvania
College of Optometry Project)
Series 1996 DN
3.95%** 10/07/97 6,800 6,800,000
Pennsylvania Higher Educational
Facilities Authority RB (University
of Pennsylvania Health Services
Project) Series 1996C DN
4.05%** 10/07/97 1,000 1,000,000
See accompanying notes to financial statements.
19
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
PAR
AS OF SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Pennsylvania Higher Education RB
(Allegheny College Project)
Series 1997 DN
4.15%** 10/07/97 $ 1,000 $ 1,000,000
Philadelphia GO Series 1990 TECP
3.65% 10/09/97 10,000 10,000,000
Philadelphia Hospital and Higher
Education Facilities Authority RB
(Children's Hospital of Philadelphia
Project) Series 1992 DN
3.90%** 10/01/97 700 700,000
Philadelphia Hospital and Higher
Education Facilities Authority RB
(Children's Hospital of Philadelphia
Project) Series 1996A DN
3.90%** 10/01/97 5,600 5,600,000
Philadelphia IDA RB (30th Street
Station Project) Series 1987 DN
4.20%** 10/07/97 6,900 6,900,000
Philadelphia Redevelopment Authority
Multi-Family Housing RB (Franklin
Town Towers Project)
Series 1985 DN
4.10%** 10/07/97 3,800 3,800,000
Pottstown Borough Sewer Authority
RB Series 1996 MB
4.00% 11/01/97 660 660,188
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985A DN
4.10%** 10/07/97 100 100,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985F DN
4.10%** 10/07/97 4,900 4,900,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985H DN
4.10%** 10/07/97 890 890,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985J DN
4.10%** 10/07/97 4,925 4,925,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985K DN
4.10%** 10/07/97 200 200,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985L DN
4.10%** 10/07/97 1,600 1,600,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985M DN
4.10%** 10/07/97 1,000 1,000,000
Schuylkill County IDA (Pine Grove
Landfill Project) Series 1995 DN
4.00%** 10/07/97 3,000 3,000,000
Schuylkill County IDA IDRB (Craftex
Mills Project) Series 1996 DN
4.25%** 10/07/97 2,250 2,250,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Schuylkill County IDA IDRB (Kaytee
Products, Inc. Project)
Series 1995 DN
4.25%** 10/07/97 $ 4,000 $ 4,000,000
Schuylkill County IDA Resource
Recovery RB (Gilberton Power
Project) Series 1985 DN
4.15%** 10/07/97 5,000 5,000,000
Schuylkill County IDA Resource
Recovery RB (Northeastern Power
Co. Project) Series 1997 DN
3.90%** 10/07/97 4,800 4,800,000
Scranton-Lackawana Health &
Welfare Authority RB (Mercy
Health System Project)
Series 1996A DN
4.05%** 10/07/97 3,400 3,400,000
Venango IDA Resource Recovery
RB (Scrubgrass Project)
Series 1990A MB
3.85% 11/21/97 300 300,000
3.80% 12/19/97 300 300,000
Venango IDA Resource Recovery
RB (Scrubgrass Project)
Series 1990B MB
3.85% 11/21/97 1,650 1,650,000
3.70% 12/19/97 5,285 5,285,000
3.80% 12/19/97 4,500 4,500,000
3.80% 02/27/98 3,715 3,715,000
Venango IDA Resource Recovery
RB (Scrubgrass Project)
Series 1993 MB
3.85% 11/21/97 8,385 8,385,000
Washington County Authority
Lease RB Series 1985 DN
4.10%** 10/01/97 11,000 11,000,000
York County Hospital Authority RB
(Homewood Retirement Centers
of The United Church of Christ, Inc.
Project) Series 1990 DN
3.84%** 10/07/97 8,250 8,250,000
York County IDA IDRB (Allied Signal,
Inc. Project) Series 1993 DN
4.20%** 10/07/97 1,000 1,000,000
York County IDA PCRB (PECO Energy
Co. Project) Series 1993A DN
3.75%** 10/07/97 4,200 4,200,000
York General Authority Pooled
Financing RB Series 1996 DN
4.05%** 10/07/97 3,200 3,200,000
-------------
524,640,184
-------------
PUERTO RICO--6.5%
Puerto Rico Government
Development Bank Refunding RB
Series 1985 DN
3.70%** 10/07/97 22,800 22,800,000
Puerto Rico Highway and
Transportation Authority Highway
RB Series 1993X DN
3.70%** 10/07/97 1,700 1,700,000
See accompanying notes to financial statements.
20
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
PAR
AS OF SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
PUERTO RICO (CONTINUED)
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority RB
(Ana G. Mendez Foundation Project)
Series 1985 DN
4.10%** 10/07/97 $ 8,100 $ 8,100,000
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority RB
(Reynolds Metals Co. Project)
Series 1983 MB
3.80% 09/01/98 3,850 3,851,630
------------
36,451,630
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $561,091,814*) 99.9% 561,091,814
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 761,726
------ -------------
NET ASSETS (Equivalent to $1.00 per
share based on 229,166,653 Institutional
shares, 234,483,714 Service shares and
98,218,141 Investor A shares outstanding) 100.0% $561,853,540
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($561,853,540 (DIVIDE) 561,868,508) $1.00
=====
- ---------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 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.
21
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
PAR
AS OF SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS--99.8%
VIRGINIA--95.9%
Alexandria IDA RB (Super & Curr
Project) Series 1997 DN
4.00%** 10/07/97 $2,500 $ 2,500,000
Alexandria IDA Resource Recovery
RB (Alexandria Arlington
Waste-to-Energy Facility Project)
Series 1986A DN
3.95%** 10/01/97 400 400,000
Alexandria Redevelopment and Housing
Authority Multi-Family Housing RB
(Buckingham Village Apartments
Project) Series 1996B DN
4.10%** 10/07/97 2,000 2,000,000
Arlington County GO Series 1991 MB
5.70% 12/01/97 650 652,049
Bedford County IDA RB (Nekoosa
Packaging Corp. Project)
Series 1997 DN
4.20%** 10/02/97 2,000 2,000,000
Brunswick County IDA Exempt Facility
RB (Aegis Waste Solutions, Inc.
Project) Series 1996 DN
4.25%** 10/07/97 1,000 1,000,000
Capital Region Airport Commission
RB (Richmond International Airport
Project) Series 1995C DN
4.10%** 10/07/97 1,465 1,465,000
Charles County IDA Exempt Facility
RB (Chambers Development of
Virginia, Inc. Project) Series 1989 DN
4.05%** 10/07/97 1,100 1,100,000
Charles County IDA Solid Waste
Disposal Facilities RB (Chambers
Development of Virginia, Inc.
Project) Series 1996 DN
4.05%** 10/07/97 1,500 1,500,000
Chesterfield County IDA PCRB
(Virginia Electric & Power Co. Project)
Series 1985 MB
3.90% 11/07/97 500 500,000
Fairfax County Economic Development
Authority RB (Foreman Development
Associates Project) Series 1996 DN
4.10%** 10/07/97 2,550 2,550,000
Fairfax County IDA RB (Fairfax Hospital
System Project) Series 1988A DN
4.05%** 10/01/97 1,100 1,100,000
Fairfax County IDA RB (Fairfax Hospital
System Project) Series 1988C DN
4.05%** 10/01/97 300 300,000
Fairfax County IDA RB (Inova Health &
Hospital Systems Project)
Series 1993B MB
3.75% 10/23/97 3,000 3,000,000
Greensville County IDA IDRB (Perdue
Farms, Inc. Project) Series 1986 DN
4.25%** 10/01/97 1,600 1,600,000
Halifax County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1992 MB
3.80% 11/10/97 2,000 2,000,000
Hampton Redevelopment & Housing
Authority Multi-Family Housing
Refunding RB (Avalon at Hampton
Project) Series 1996A DN
4.00%** 10/01/97 2,560 2,560,000
PAR
MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1995 DN
4.05%** 10/01/97 $ 6,700 $ 6,700,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1996 DN
4.05%** 10/01/97 500 500,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1997 DN
4.05%** 10/01/97 2,900 2,900,000
King George County IDA Solid Waste
Disposal Facility RB (Garnet of
Virginia, Inc. Project) Series 1996 DN
4.20%** 10/02/97 1,500 1,500,000
Louden County IDA Residential Care
Facility RB (Falcons Landing Project)
Series 1994B DN
4.35%** 10/01/97 2,500 2,500,000
Louisa IDA PCRB (Virginia Electric &
Power Co. Project) Series 1985 MB
3.80% 02/27/98 100 100,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital
Asset Finance Program)
Series 1985B DN
4.15%** 10/01/97 900 900,000
Metropolitan Washington D.C. Airports
Authority Passenger Facility Flexible
Term Notes TECP
3.95% 01/23/98 1,000 1,000,000
3.82% 03/13/98 3,000 3,000,000
Peninsula Ports Authority of Virginia
Coal Terminal RB (Dominion
Terminal Associates Project)
Series 1987D DN
3.90%** 10/01/97 500 500,000
Peninsula Ports Authority of Virginia
Port Facility Refunding RB (CSX
Transportation, Inc. Project)
Series 1992 DN
3.70%** 11/10/97 1,000 1,000,000
Prince William County IDA RB
(Colonial Investments Facility
Project) Series 1996 MB
4.10% 10/01/97 3,295 3,295,000
Prince William County IDA PCRB
(Virginia Electric & Power Co.
Project) Series 1986 MB
3.90% 11/07/97 300 300,000
Richmond IDA RB (Halifax Paper
Board Co. Project) Series 1990 DN
4.25%** 10/07/97 510 510,000
Richmond IDA RB (PM Beef Project)
Series 1997 DN
4.40%** 10/07/97 3,000 3,000,000
Roanoke IDA Hospital RB (Carillon
Health System Project)
Series 1995B DN
4.00%** 10/07/97 500 500,000
Roanoke IDA Hospital RB
(Carillon Health System Project)
Series 1995C DN
4.00%** 10/07/97 1,300 1,300,000
See accompanying notes to financial statements.
22
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
PAR
AS OF SEPTEMBER 30, 1997 MATURITY (000) VALUE
-------- -------- -------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
Roanoke IDA Hospital RB
(Carillon Health System Project)
Series 1995D DN
4.00%** 10/07/97 $ 685 $ 685,000
Rockingham County IDA Higher
Education Facilities RB (Eastern
Mennonite University Project)
Series 1995 DN
4.05%** 10/01/97 1,320 1,320,000
South Hill IDA IDRB (South Hill Veneers,
Inc. Project) Series 1987 DN
4.20%** 10/07/97 300 300,000
Suffolk County GO Series 1996 MB
4.50% 06/01/98 2,000 2,000,519
Virginia College Building Authority
Educational Facilities RB
(University of Richmond Project)
Series 1996 DN
3.95%** 10/01/97 1,000 1,000,000
Virginia Housing Development
Authority Housing RB (AHC Service
Corp. Woodbury Park Project)
Series 1987A DN
4.15%** 10/07/97 1,070 1,070,000
Virginia Resource Authority RB
(Henrico County Project)
Series 1997 DN
4.00%** 10/07/97 2,000 2,000,000
Virginia Small Business Financing
Authority IDRB (Coastal
Development Group Project)
Series 1989 DN
4.25%** 10/07/97 195 195,000
Virginia State Transportation Board RB
(U.S. Route 28 Project)
Series 1988 MB
7.80% 03/01/98 1,750 1,812,586
York County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1985 MB
3.90% 11/07/97 200 200,000
----------
66,315,154
----------
PUERTO RICO--3.9%
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority RB
(Ana G. Mendez Foundation
Project) Series 1985 DN
4.10%** 10/07/97 600 600,000
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% 09/01/98 600 600,000
-----------
2,700,000
-----------
Value
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $69,015,154*) 99.8% $69,015,154
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.2% 158,864
------ -----------
NET ASSETS (Equivalent to $1.00 per
share based on 62,834,568 Institutional
shares, 5,244,071 Service shares and
1,095,549 Investor A shares outstanding) 100.0% $69,174,018
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($69,174,018 (DIVIDE) 69,174,188) $1.00
=====
- -------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of September 30, 1997, and maturities shown
are the longer of the next interest readjustment date or the date the
principal owed can be recovered through demand.
INVESTMENT ABBREVIATIONS
BAN .................................................. Bond Anticipation Note
DN .............................................................. Demand Note
GO ....................................................... General Obligation
IDA ........................................ Industrial Development Authority
IDR .......................................... Industrial Development Revenue
IDRB .................................... Industrial Development Revenue Bond
MB ........................................................... Municipal Bond
PCR ............................................... Pollution Control Revenue
PCRB ......................................... Pollution Control Revenue Bond
RAN ............................................... Revenue Anticipation Note
RB ............................................................. Revenue Bond
TAN ................................................... Tax Anticipation Note
TECP ............................................ Tax-Exempt Commercial Paper
TRAN ...................................... Tax and Revenue Anticipation Note
See accompanying notes to financial statements.
23
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
New Jersey North Carolina
U.S. Treasury Municipal Municipal Municipal
Money Market Money Market Money Market Money Market Money Market
FOR THE YEAR ENDED SEPTEMBER 30, 1997 Portfolio Portfolio Portfolio Portfolio Portfolio
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................. $149,601,144 $57,398,424 $14,115,234 $4,338,822 $5,608,212
------------ ----------- ----------- ---------- ----------
EXPENSES:
Investment advisory fee .............. 11,003,972 4,707,697 1,729,929 551,059 695,693
Administration fee ................... 3,968,041 1,772,622 691,972 220,424 277,277
Custodian fee ........................ 433,417 182,122 84,066 31,646 39,678
Transfer agent fee ................... 826,913 350,165 146,677 56,837 71,477
Service fees ......................... 4,851,032 2,559,595 986,715 282,827 31,579
Distribution fees .................... 883,561 97,348 15,265 113,916 795
Legal and audit ...................... 403,854 87,526 29,642 20,839 14,405
Printing ............................. 124,978 47,145 17,424 9,005 9,879
Registration fees
and expenses ....................... 72,246 32,694 44,472 28,192 13,282
Trustees' fees and officer's
salary ............................. 53,508 24,226 7,290 2,146 2,942
Other ................................ 117,341 49,092 9,584 17,892 10,589
------------ ----------- ----------- ---------- ----------
22,738,863 9,910,232 3,763,036 1,334,783 1,167,596
Less fees voluntarily waived
and expenses reimbursed ............ (8,675,234) (4,012,311) (1,574,139) (543,254) (693,332)
------------ ----------- ----------- ---------- ----------
Total expenses ..................... 14,063,629 5,897,921 2,188,897 791,529 474,264
------------ ----------- ----------- ---------- ----------
Net investment income ................ 135,537,515 51,500,503 11,926,337 3,547,293 5,133,948
------------ ----------- ----------- ---------- ----------
Net realized gain (loss)
on investments ..................... (13,172) 121,380 (1,471) (1,750) --
------------ ----------- ----------- ---------- ----------
Net increase in net assets
resulting from operations .......... $135,524,343 $51,621,883 $11,924,866 $3,545,543 $5,133,948
============ =========== =========== ========== ==========
</TABLE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
<TABLE>
<CAPTION>
Ohio Pennsylvania Virginia
Municipal Municipal Municipal
Money Market Money Market Money Market
FOR THE YEAR ENDED SEPTEMBER 30, 1997 Portfolio Portfolio Portfolio
------------- ------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................. $4,124,780 $19,513,862 $2,226,800
---------- ----------- ----------
EXPENSES:
Investment advisory fee .............. 501,890 2,426,843 271,586
Administration fee ................... 200,756 968,233 108,634
Custodian fee ........................ 29,895 105,303 19,790
Transfer agent fee ................... 45,012 191,072 32,870
Service fees ......................... 170,140 722,708 31,084
Distribution fees .................... 45,746 431,776 1,939
Legal and audit ...................... 11,851 44,560 10,277
Printing ............................. 5,023 34,369 3,761
Registration fees
and expenses ....................... 17,390 3,987 13,689
Trustees' fees and officer's
salary ............................. 2,144 11,371 1,183
Other ................................ 7,933 19,283 22,554
---------- ----------- ----------
1,037,780 4,959,505 517,367
Less fees voluntarily waived
and expenses reimbursed ............ (473,194) (2,157,472) (356,030)
---------- ----------- ----------
Total expenses ..................... 564,586 2,802,033 161,337
---------- ----------- ----------
Net investment income ................ 3,560,194 16,711,829 2,065,463
---------- ----------- ----------
Net realized gain (loss)
on investments ..................... (4,223) (3,354) --
---------- ----------- ----------
Net increase in net assets
resulting from operations .......... $3,555,971 $16,708,475 $2,065,463
========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
24-25
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. Treasury Municipal
Money Market Portfolio Money Market Portfolio Money Market Portfolio
----------------------------- ----------------------------- -------------------------
For the For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
9/30/97 9/30/96 9/30/97 9/30/96 9/30/97 9/30/96
-------------- -------------- -------------- -------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income .................. $ 135,537,515 $ 120,493,971 $ 51,500,503 $ 57,098,743 $ 11,926,337 $ 10,664,825
Net realized gain (loss) on
investments ......................... (13,172) 143,906 121,380 (262,952) (1,471) 39,648
-------------- -------------- -------------- -------------- ------------ ------------
Net increase in net assets resulting
from operations ........................ 135,524,343 120,637,877 51,621,883 56,835,791 11,924,866 10,704,473
-------------- -------------- -------------- -------------- ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Shares ................... (44,007,087) (35,226,973) (8,997,921) (8,587,203) (1,739,614) (1,608,121)
Service Shares ......................... (80,683,555) (80,301,220) (41,357,884) (48,192,461) (10,075,399) (9,049,712)
Investor A Shares ...................... (10,833,065) (4,962,819) (1,144,698) (319,079) (111,309) (6,992)
Investor B Shares ...................... (7,259) (2,959) -- -- -- --
Investor C Shares ...................... (6,549) -- -- -- (15) --
-------------- -------------- -------------- -------------- ------------ ------------
Total distribution from net
investment income .................... (135,537,515) (120,493,971) (51,500,503) (57,098,743) (11,926,337) (10,664,825)
-------------- -------------- -------------- -------------- ------------ ------------
Distributions to shareholders 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 .... (135,570,963) (120,493,971) (51,500,503) (57,109,888) (11,926,337) (10,664,825)
-------------- -------------- -------------- -------------- ------------ ------------
Capital share transactions ................. 420,175,271 466,501,738 (91,771,684) 460,767,915 87,735,153 (12,063,434)
-------------- -------------- -------------- -------------- ------------ ------------
Total increase (decrease) in
net assets ........................... 420,128,651 466,645,644 (91,650,304) 460,493,818 87,733,682 (12,023,786)
Net assets:
Beginning of period ...................... 2,325,031,390 1,858,385,746 1,133,277,866 672,784,048 307,403,502 319,427,288
-------------- -------------- -------------- -------------- ------------ ------------
End of period ............................ $2,745,160,041 $2,325,031,390 $1,041,627,562 $1,133,277,866 $395,137,184 $307,403,502
============== ============== ============== ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
New Jersey Municipal North Carolina Municipal
Money Market Portfolio Money Market Portfolio
--------------------------------------------- ------------------------
For the For the For the For the For the
Year Ended Period 2/1/96 Period 3/1/95 Year Ended Year Ended
9/30/97 Through 9/30/96 Through 1/31/96 9/30/97 9/30/96
------------ --------------- --------------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income .................. $ 3,547,293 $ 1,515,951 $ 1,406,663 $ 5,133,948 $ 3,151,297
Net realized gain (loss) on
investments ......................... (1,750) 529 (285) -- (124)
------------ ----------- ----------- ------------ ------------
Net increase in net assets resulting
from operations ........................ 3,545,543 1,516,480 1,406,378 5,133,948 3,151,173
------------ ----------- ----------- ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Shares ................... (145,925) (32,970) (5,649) (4,808,688) (2,984,694)
Service Shares ......................... (2,765,162) (1,161,646) (1,388,324)* (319,534) (164,443)
Investor A Shares ...................... (635,927) (321,335) (22,768) (5,726) (2,160)
Investor B Shares ...................... (279) -- -- -- --
Investor C Shares ...................... -- -- -- -- --
------------ ----------- ----------- ------------ ------------
Total distribution from net
investment income .................... (3,547,293) (1,515,951) (1,416,741) (5,133,948) (3,151,297)
------------ ----------- ----------- ------------ ------------
Distributions to shareholders 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 .... (3,547,293) (1,515,951) (1,416,741) (5,133,948) (3,151,297)
------------ ----------- ----------- ------------ ------------
Capital share transactions ................. 44,352,117 3,251,806 39,215,073 51,994,775 41,104,444
------------ ----------- ----------- ------------ ------------
Total increase (decrease) in
net assets ........................... 44,350,367 3,252,335 39,204,710 51,994,775 41,104,320
Net assets:
Beginning of period ...................... 86,067,045 82,814,710 43,610,000 119,670,846 78,566,526
------------ ----------- ----------- ------------ ------------
End of period ............................ $130,417,412 $86,067,045 $82,814,710 $171,665,621 $119,670,846
============ =========== =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Ohio Municipal Pennsylvania Municipal Virginia Municipal
Money Market Portfolio Money Market Portfolio Money Market Portfolio
---------------------- ------------------------ ----------------------
For the For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
9/30/97 9/30/96 9/30/97 9/30/96 9/30/97 9/30/96
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income .................. $ 3,560,194 $ 2,352,595 $ 16,711,829 $ 15,949,886 $ 2,065,463 $ 1,407,218
Net realized gain (loss) on
investments ......................... (4,223) (5,840) (3,354) (1,626) -- (125)
----------- ----------- ------------ ------------ ----------- -----------
Net increase in net assets resulting
from operations ........................ 3,555,971 2,346,755 16,708,475 15,948,260 2,065,463 1,407,093
----------- ----------- ------------ ------------ ----------- -----------
Distributions to shareholders from:
Net investment income:
Institutional Shares ................... (1,473,315) (821,771) (6,828,405) (7,707,679) (1,730,341) (1,123,148)
Service Shares ......................... (1,760,658) (1,439,522) (7,261,869) (6,766,857) (323,693) (284,070)
Investor A Shares ...................... (326,221) (91,302) (2,621,555) (1,475,350) (11,429) --
Investor B Shares ...................... -- -- -- -- -- --
Investor C Shares ...................... -- -- -- -- -- --
----------- ----------- ------------ ------------ ----------- -----------
Total distribution from net
investment income .................... (3,560,194) (2,352,595) (16,711,829) (15,949,886) (2,065,463) (1,407,218)
----------- ----------- ------------ ------------ ----------- -----------
Distributions to shareholders 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 .... (3,560,194) (2,352,595) (16,711,829) (15,949,886) (2,065,463) (1,407,218)
----------- ----------- ------------ ------------ ----------- -----------
Capital share transactions ................. 13,637,975 10,535,788 75,413,464 104,541,639 15,653,396 28,291,131
----------- ----------- ------------ ------------ ----------- -----------
Total increase (decrease) in
net assets ........................... 13,633,752 10,529,948 75,410,110 104,540,013 15,653,396 28,291,006
Net assets:
Beginning of period ...................... 84,141,119 73,611,171 486,443,430 381,903,417 53,520,622 25,229,616
----------- ----------- ------------ ------------ ----------- -----------
End of period ............................ $97,774,871 $84,141,119 $561,853,540 $486,443,430 $69,174,018 $53,520,622
=========== =========== ============ ============ =========== ===========
<FN>
- ------------
* Service Shares includes all activity of the prior class of shares for all
periods before January 13, 1996, the date of the merger.
</FN>
</TABLE>
See accompanying notes to financial statements.
26-27
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
FOR THE PERIOD ENDED OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
MONEY MARKET PORTFOLIO
- ----------------------
INSTITUTIONAL CLASS
9/30/97 $1.00 $0.0529 $(0.0529) $0.00 $1.00 5.42% $ 878,566
9/30/96 1.00 0.0533 (0.0533) 0.00 1.00 5.46 587,730
9/30/95 1.00 0.0564 (0.0564) 0.00 1.00 5.79 654,157
9/30/94 1.00 0.0359 (0.0359) 0.00 1.00 3.64 502,972
8/2/93 1 through 9/30/93 1.00 0.0054 (0.0054) 0.00 1.00 0.54 435,586
SERVICE CLASS
9/30/97 $1.00 $0.0499 $(0.0499) $0.00 $1.00 5.11% $1,610,315
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
INVESTOR A CLASS
9/30/97 $1.00 $0.0491 $(0.0491) $0.00 $1.00 5.02% $ 256,039
9/30/96 1.00 0.0485 (0.0485) 0.00 1.00 4.96 162,099
9/30/95 1.00 0.0511 (0.0511) 0.00 1.00 5.23 10,185
9/30/94 1.00 0.0308 (0.0308) 0.00 1.00 3.12 4,342
1/13/93 1 through 9/30/93 1.00 0.0188 (0.0188) 0.00 1.00 1.89 49
INVESTOR B CLASS
9/30/97 $1.00 $0.0424 $(0.0424) $0.00 $1.00 4.32% $ 238
9/30/96 1.00 0.0426 (0.0426) 0.00 1.00 4.34 138
9/15/95 1 through 9/30/95 1.00 0.0020 (0.0020) 0.00 1.00 0.20 27
INVESTOR C CLASS
10/17/96 1 through 9/30/97 $1.00 $0.0390 $(0.0390) $0.00 $1.00 3.97% $ 2
- ------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
- ------------------------------------
INSTITUTIONAL CLASS
9/30/97 $1.00 $0.0515 $(0.0515) $0.00 $1.00 5.27% $ 162,052
9/30/96 1.00 0.0519 (0.0519) 0.00 1.00 5.32 167,193
9/30/95 1.00 0.0555 (0.0555) 0.00 1.00 5.69 120,540
9/30/94 1.00 0.0357 (0.0357) 0.00 1.00 3.63 37,519
8/2/93 1 through 9/30/93 1.00 0.0049 (0.0049) 0.00 1.00 0.49 13,513
SERVICE CLASS
9/30/97 $1.00 $0.0485 $(0.0485) $0.00 $1.00 4.93% $ 836,151
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
INVESTOR A CLASS
9/30/97 $1.00 $0.0468 $(0.0468) $0.00 $1.00 4.75% $ 43,425
9/30/96 1.00 0.0467 (0.0467) 0.00 1.00 4.77 10,630
9/30/95 1.00 0.0501 (0.0501) 0.00 1.00 5.13 1,285
9/30/94 1.00 0.0309 (0.0309) 0.00 1.00 3.11 1,656
1/14/93 1 through 9/30/93 1.00 0.0183 (0.0183) 0.00 1.00 1.85 50
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
INSTITUTIONAL CLASS
9/30/97 $1.00 $0.0337 $(0.0337) $0.00 $1.00 3.42% $ 58,747
9/30/96 1.00 0.0339 (0.0339) 0.00 1.00 3.41 43,936
9/30/95 1.00 0.0364 (0.0364) 0.00 1.00 3.70 53,778
9/30/94 1.00 0.0246 (0.0246) 0.00 1.00 2.48 30,608
8/2/93 1 through 9/30/93 1.00 0.0040 (0.0040) 0.00 1.00 0.40 39,148
</TABLE>
<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
FOR THE PERIOD ENDED ASSETS WAIVERS) ASSETS WAIVERS)
=======================================================================================================
<S> <C> <C> <C> <C>
- ----------------------
MONEY MARKET PORTFOLIO
- ----------------------
INSTITUTIONAL CLASS
9/30/97 0.32% 0.65% 5.30% 4.97%
9/30/96 0.29 0.65 5.34 4.98
9/30/95 0.27 0.64 5.66 5.28
9/30/94 0.25 0.66 3.64 3.23
8/2/93 1 through 9/30/93 0.27 2 0.38 2 3.01 2 2.90 2
SERVICE CLASS
9/30/97 0.61% 0.94% 4.99% 4.66%
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
INVESTOR A CLASS
9/30/97 0.70% 1.03% 4.92% 4.59%
9/30/96 0.74 1.10 4.81 4.45
9/30/95 0.81 1.19 5.15 4.78
9/30/94 0.75 1.16 3.39 2.98
1/13/93 1 through 9/30/93 0.67 2 0.78 2 2.62 2 2.51 2
INVESTOR B CLASS
9/30/97 1.39% 1.72% 4.26% 3.93%
9/30/96 1.36 1.73 4.18 3.82
9/15/95 1 through 9/30/95 1.34 2 1.72 2 4.58 2 4.20 2
INVESTOR C CLASS
10/17/96 1 through 9/30/97 1.50%2 1.83%2 4.01%2 3.68%2
- ------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
- ------------------------------------
INSTITUTIONAL CLASS
9/30/97 0.31% 0.69% 5.15% 4.77%
9/30/96 0.29 0.69 5.18 4.78
9/30/95 0.27 0.69 5.64 5.22
9/30/94 0.25 0.70 3.69 3.24
8/2/93 1 through 9/30/93 0.25 2 0.38 2 3.01 2 2.88 2
SERVICE CLASS
9/30/97 0.61% 0.99% 4.85% 4.47%
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
INVESTOR A CLASS
9/30/97 0.78% 1.16% 4.70% 4.32%
9/30/96 0.79 1.19 4.60 4.20
9/30/95 0.80 1.21 5.03 4.62
9/30/94 0.75 1.20 3.60 3.14
1/14/93 1 through 9/30/93 0.65 2 0.78 2 2.57 2 2.44 2
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
INSTITUTIONAL CLASS
9/30/97 0.31% 0.72% 3.36% 2.95%
9/30/96 0.29 0.73 3.37 2.93
9/30/95 0.27 0.71 3.64 3.20
9/30/94 0.25 0.73 2.48 2.01
8/2/93 1 through 9/30/93 0.25 2 0.36 2 2.45 2 2.34 2
</TABLE>
See accompanying notes to financial statements.
28-29
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
FOR THE PERIOD ENDED OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
- --------------------------------
SERVICE CLASS
9/30/97 $1.00 $0.0307 $(0.0307) $0.00 $1.00 3.11% $327,910
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
INVESTOR A CLASS
9/30/97 $1.00 $0.0290 $(0.0290) $0.00 $1.00 2.93% $ 8,468
9/30/96 1.00 0.0288 (0.0288) 0.00 1.00 2.88 1,851
9/30/95 1.00 0.0311 (0.0311) 0.00 1.00 3.15 20
9/30/94 1.00 0.0193 (0.0193) 0.00 1.00 1.95 41
11/02/92 1 through 9/30/93 1.00 0.0181 (0.0181) 0.00 1.00 1.83 15
INVESTOR C CLASS
9/12/97 1 through 9/30/97 $1.00 $0.0013 $(0.0013) $0.00 $1.00 0.13% $12
- -------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
9/30/97 $1.00 $0.0323 $(0.0323) $0.00 $1.00 3.28% $ 7,432
2/1/96 through 9/30/96 1.00 0.0207 (0.0207) 0.00 1.00 2.09 614
1/16/96 1 through 1/31/96 1.00 0.0000 (0.0000) 0.00 1.00 3.07 4,195
SERVICE CLASS
9/30/97 $1.00 $0.0293 $(0.0293) $0.00 $1.00 2.96% $101,294
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
INVESTOR A CLASS
9/30/97 $1.00 $0.0268 $(0.0268) $0.00 $1.00 2.71% $ 21,691
2/1/96 through 9/30/96 1.00 0.0175 (0.0175) 0.00 1.00 1.76 17,314
1/16/96 1 through 1/31/96 1.00 0.0000 (0.0000) 0.00 1.00 2.66 21,662
INVESTOR B CLASS
3/20/97 1 through 9/30/97 $1.00 $0.0077 $(0.0077) $0.00 $1.00 0.77% --5
- -----------------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------
INSTITUTIONAL CLASS
9/30/97 $1.00 $0.0334 $(0.0334) $0.00 $1.00 3.39% $147,658
9/30/96 1.00 0.0338 (0.0338) 0.00 1.00 3.43 112,097
9/30/95 1.00 0.0359 (0.0359) 0.00 1.00 3.65 76,673
9/30/94 1.00 0.0249 (0.0249) 0.00 1.00 2.52 69,673
5/4/93 1 through 9/30/93 1.00 0.0097 (0.0097) 0.00 1.00 0.97 34,135
SERVICE CLASS
9/30/97 $1.00 $0.0304 $(0.0304) $0.00 $1.00 3.08% $ 23,704
9/30/96 1.00 0.0308 (0.0308) 0.00 1.00 3.12 7,463
11/1/94 4 through 9/30/95 1.00 0.0305 (0.0305) 0.00 1.00 3.11 1,841
4/29/94 1 through 9/30/94 1.00 0.0099 (0.0099) 0.00 1.00 0.99 --3
INVESTOR A CLASS
9/30/97 $1.00 $0.0287 $(0.0287) $0.00 $1.00 2.91% $ 304
9/30/96 1.00 0.0286 (0.0286) 0.00 1.00 2.90 111
2/14/95 1 through 9/30/95 1.00 0.0194 (0.0194) 0.00 1.00 1.95 53
</TABLE>
<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
FOR THE PERIOD ENDED ASSETS WAIVERS) ASSETS WAIVERS)
====================================================================================================
<S> <C> <C> <C> <C>
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
SERVICE CLASS
9/30/97 0.61% 1.02% 3.06% 2.65%
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
INVESTOR A CLASS
9/30/97 0.79% 1.20% 2.92% 2.51%
9/30/96 0.77 1.21 2.80 2.36
9/30/95 0.79 1.23 3.08 2.64
9/30/94 0.75 1.23 2.05 1.58
11/02/92 1 through 9/30/93 0.72 2 0.83 2 2.23 2 2.12 2
INVESTOR C CLASS
9/12/97 1 through 9/30/97 1.32%2 1.73%2 2.63%2 2.22%2
- ---------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET
- ---------------------------------
INSTITUTIONAL CLASS
9/30/97 0.32% 0.76% 3.27% 2.83%
2/1/96 through 9/30/96 0.29 2 0.78 2 3.07 2 2.58 2
1/16/96 1 through 1/31/96 0.29 2 0.78 2 3.07 2 2.58 2
SERVICE CLASS
9/30/97 0.61% 1.05% 2.93% 2.49%
2/1/96 through 9/30/96 0.59 2 1.08 2 2.82 2 2.33 2
3/1/95 through 1/31/96 0.70 2 0.74 2 3.17 2 3.13 2
2/28/95 0.63 0.70 2.46 2.39
2/28/94 0.65 0.72 1.77 1.70
2/28/93 0.73 0.76 2.17 2.14
INVESTOR A CLASS
9/30/97 0.86% 1.30% 2.68% 2.24%
2/1/96 through 9/30/96 0.78 2 1.27 2 2.63 2 2.15 2
1/16/96 1 through 1/31/96 0.71 2 1.20 2 2.66 2 2.17 2
INVESTOR B CLASS
3/20/97 1 through 9/30/97 1.37%2 1.81%2 2.35%2 1.91%2
- -------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET
- -------------------------------------
INSTITUTIONAL CLASS
9/30/97 0.28% 0.73% 3.34% 2.89%
9/30/96 0.25 0.74 3.33 2.84
9/30/95 0.21 0.74 3.61 3.08
9/30/94 0.10 0.76 2.53 1.87
5/4/93 1 through 9/30/93 0.10 2 0.81 2 2.35 2 1.64 2
SERVICE CLASS
9/30/97 0.60% 1.05% 3.04% 2.59%
9/30/96 0.55 1.04 3.06 2.56
11/1/94 4 through 9/30/95 0.55 2 1.08 2 3.34 2 2.81 2
4/29/94 1 through 9/30/94 0.36 2 1.02 2 2.54 2 1.87 2
INVESTOR A CLASS
9/30/97 0.76% 1.21% 2.88% 2.43%
9/30/96 0.76 1.25 2.83 2.34
2/14/95 1 through 9/30/95 0.83 2 1.36 2 3.05 2 2.52 2
</TABLE>
See accompanying notes to financial statements.
30-31
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
FOR THE PERIOD ENDED OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------
OHIO MUNICIPAL MONEY MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
9/30/97 $1.00 $0.0340 $(0.0340) $0.00 $1.00 3.45% $ 23,739
9/30/96 1.00 0.0346 (0.0346) 0.00 1.00 3.52 32,944
9/30/95 1.00 0.0363 (0.0363) 0.00 1.00 3.69 23,679
9/30/94 1.00 0.0252 (0.0252) 0.00 1.00 2.55 10,521
6/10/93 1 through 9/30/93 1.00 0.0073 (0.0073) 0.00 1.00 0.73 12,026
SERVICE CLASS
9/30/97 $1.00 $0.0310 $(0.0310) $0.00 $1.00 3.15% $ 58,160
9/30/96 1.00 0.0316 (0.0316) 0.00 1.00 3.21 45,525
9/30/95 1.00 0.0333 (0.0333) 0.00 1.00 3.38 49,857
9/30/94 1.00 0.0225 (0.0225) 0.00 1.00 2.27 44,066
6/1/93 1 through 9/30/93 1.00 0.0074 (0.0074) 0.00 1.00 0.75 15,239
INVESTOR A CLASS
9/30/97 $1.00 $0.0292 $(0.0292) $0.00 $1.00 2.96% $ 15,876
9/30/96 1.00 0.0293 (0.0293) 0.00 1.00 2.98 5,672
9/30/95 1.00 0.0310 (0.0310) 0.00 1.00 3.15 75
10/5/93 1 through 9/30/94 1.00 0.0199 (0.0199) 0.00 1.00 2.01 28
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- ---------------------------------------------
INSTITUTIONAL CLASS
9/30/97 $1.00 $0.0332 $(0.0332) $0.00 $1.00 3.37% $229,164
9/30/96 1.00 0.0334 (0.0334) 0.00 1.00 3.40 198,822
9/30/95 1.00 0.0355 (0.0355) 0.00 1.00 3.61 233,413
9/30/94 1.00 0.0247 (0.0247) 0.00 1.00 2.49 158,102
6/1/93 1 through 9/30/93 1.00 0.0078 (0.0078) 0.00 1.00 0.78 2,242
SERVICE CLASS
9/30/97 $1.00 $0.0302 $(0.0302) $0.00 $1.00 3.06% $234,472
9/30/96 1.00 0.0304 (0.0304) 0.00 1.00 3.04 224,197
9/30/95 1.00 0.0325 (0.0325) 0.00 1.00 3.33 147,739
9/30/94 1.00 0.0221 (0.0221) 0.00 1.00 2.24 60,560
6/11/93 1 through 9/30/93 1.00 0.0074 (0.0074) 0.00 1.00 0.74 8,919
INVESTOR A CLASS
9/30/97 $1.00 $0.0285 $(0.0285) $0.00 $1.00 2.89% $ 98,218
9/30/96 1.00 0.0281 (0.0281) 0.00 1.00 2.90 63,424
9/30/95 1.00 0.0302 (0.0302) 0.00 1.00 3.06 750
12/28/93 1 through 9/30/94 1.00 0.0153 (0.0153) 0.00 1.00 1.58 139
- -----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------
INSTITUTIONAL CLASS
9/30/97 $1.00 $0.0347 $(0.0347) $0.00 $1.00 3.53% $ 62,834
9/30/96 1.00 0.0348 (0.0348) 0.00 1.00 3.54 38,553
9/30/95 1.00 0.0368 (0.0368) 0.00 1.00 3.74 24,409
7/25/94 1 through 9/30/94 1.00 0.0053 (0.0053) 0.00 1.00 0.53 13,831
SERVICE CLASS
9/30/97 $1.00 $0.0317 $(0.0317) $0.00 $1.00 3.22% $ 5,244
9/30/96 1.00 0.0318 (0.0318) 0.00 1.00 3.25 14,968
10/11/94 1 through 9/30/95 1.00 0.0330 (0.0330) 0.00 1.00 3.35 821
INVESTOR A CLASS
5/27/97 1 through 9/30/97 $1.00 $0.0102 $(0.0102) $0.00 $1.00 1.03% $ 1,096
</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
FOR THE PERIOD ENDED ASSETS WAIVERS) ASSETS WAIVERS)
====================================================================================================
<S> <C> <C> <C> <C>
- -------------------------------------------
OHIO MUNICIPAL MONEY MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
9/30/97 0.30% 0.73% 3.37% 2.94%
9/30/96 0.29 0.75 3.47 3.01
9/30/95 0.27 0.73 3.66 3.20
9/30/94 0.13 0.77 2.56 1.93
6/10/93 1 through 9/30/93 0.10 2 0.83 2 2.45 2 1.72 2
SERVICE CLASS
9/30/97 0.61% 1.03% 3.10% 2.68%
9/30/96 0.59 1.05 3.17 2.71
9/30/95 0.57 1.03 3.35 2.89
9/30/94 0.40 1.04 2.29 1.65
6/1/93 1 through 9/30/93 0.23 2 0.96 2 2.23 2 1.50 2
INVESTOR A CLASS
9/30/97 0.79% 1.21% 2.92% 2.50%
9/30/96 0.79 1.25 2.88 2.42
9/30/95 0.80 1.26 3.02 2.56
10/5/93 1 through 9/30/94 0.62 2 1.26 2 1.94 2 1.30 2
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- ---------------------------------------------
INSTITUTIONAL CLASS
9/30/97 0.30% 0.70% 3.31% 2.91%
9/30/96 0.29 0.71 3.34 2.92
9/30/95 0.26 0.68 3.54 3.12
9/30/94 0.16 0.73 2.64 2.07
6/1/93 1 through 9/30/93 0.09 2 0.97 2 2.15 2 1.27 2
SERVICE CLASS
9/30/97 0.61% 1.01% 3.01% 2.61%
9/30/96 0.59 1.01 3.02 2.59
9/30/95 0.57 0.99 3.29 2.87
9/30/94 0.42 0.99 2.31 1.75
6/11/93 1 through 9/30/93 0.32 2 1.20 2 2.42 2 1.54 2
INVESTOR A CLASS
9/30/97 0.77% 1.17% 2.85% 2.45%
9/30/96 0.81 1.23 2.81 2.39
9/30/95 0.82 1.24 3.03 2.61
12/28/93 1 through 9/30/94 0.65 2 1.22 2 2.11 2 1.54 2
- -----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------
INSTITUTIONAL CLASS
9/30/97 0.22% 0.81% 3.49% 2.90%
9/30/96 0.14 0.82 3.47 2.79
9/30/95 0.10 0.95 3.71 2.86
7/25/94 1 through 9/30/94 0.10 2 1.02 2 2.89 2 1.97 2
SERVICE CLASS
9/30/97 0.48% 1.07% 3.12% 2.53%
9/30/96 0.45 1.12 3.05 2.38
10/11/94 1 through 9/30/95 0.40 2 1.25 2 3.50 2 2.65 2
INVESTOR A CLASS
5/27/97 1 through 9/30/97 0.86%2 1.45%2 2.95%2 2.36%2
<FN>
1 Commencement of operations of share class.
2 Annualized.
3 There were no Service Shares outstanding as of September 30, 1994.
4 Reissuance of Shares.
5 There were no Investor B Shares outstanding as of September 30, 1997.
</FN>
</TABLE>
See accompanying notes to financial statements.
32-33
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS
Compass Capital Funds(SERVICE MARK) ("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 31 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 may offer as many as five classes of shares. Shares of all classes
of a Portfolio represent equal pro rata interests in such Portfolio, except that
each class bears different expenses which reflect the difference in the range of
services provided to them. The following table provides a list of the Portfolios
included in this report along with their respective class-specific fee
arrangements as provided under the Fund's Amended and Restated Distribution and
Service Plan (the "Plan"). Fees are expressed as a percentage of average daily
net asset values of the respective classes.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Share Classes
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Service Investor A Investor B Investor C
- ------------------------------------------------------------------------------------------------------------------------------------
Contractual Actual Contractual Actual Contractual Actual Contractual Actual Contractual Actual
Fees Fees (4) Fees (1) Fees (4) Fees (2) Fees (4) Fees (3) Fees (4) Fees (3) Fees (4)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% 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% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 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% 0.40% 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 September 30, 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 assets of such respective classes.
(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires the use of management estimates. 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.
(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 of 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 year ended September 30, 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 ........................................ $11,003,972 $8,343,302 $2,660,670
U.S. Treasury Money Market Portfolio .......................... 4,707,697 3,846,332 861,365
Municipal Money Market Portfolio .............................. 1,729,929 1,482,338 247,591
New Jersey Municipal Money Market Portfolio ................... 551,059 483,282 67,777
North Carolina Municipal Money Market Portfolio ............... 695,693 601,236 94,457
Ohio Municipal Money Market Portfolio ......................... 501,890 434,972 66,918
Pennsylvania Municipal Money Market Portfolio ................. 2,426,843 2,049,927 376,916
Virginia Municipal Money Market Portfolio ..................... 271,586 267,959 3,627
</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 year ended
September 30, 1997, administration fees and waivers for each Portfolio were as
follows:
<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- -------- --------------
<S> <C> <C> <C>
Money Market Portfolio ...................................... $3,968,041 $331,932 $3,636,109
U.S. Treasury Money Market Portfolio ........................ 1,772,622 165,979 1,606,643
Municipal Money Market Portfolio ............................ 691,972 91,801 600,171
New Jersey Municipal Money Market Portfolio ................. 220,424 59,972 160,452
North Carolina Municipal Money Market Portfolio ............. 277,277 92,096 185,181
Ohio Municipal Money Market Portfolio ....................... 200,756 38,222 162,534
Pennsylvania Municipal Money Market Portfolio ............... 968,233 107,545 860,688
Virginia Municipal Money Market Portfolio ................... 108,634 88,071 20,563
</TABLE>
In addition, PNC Bank serves as custodian for each of the Fund's
Portfolios. PFPC serves as transfer agent and dividend disbursing agent.
35
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PAMG, PIMC, PFPC, CCG and CDI have also agreed for the periods ended
September 30, 1997 to reimburse each Portfolio for the amount, if any, by which
the total operating and management expenses of such Portfolio for any fiscal
year exceed the most restrictive state blue sky expense limitation in effect
from time to time, to the extent required by such limitation. No such
reimbursements were necessary for the year ended September 30, 1997.
Under the Fund's Distribution and Service Plan (the "Plan"), Investor
Shares of the Portfolios bear the expense of payments ("distribution fees") made
to CDI, as the Fund's distributor (the "Distributor"), or affiliates of PNC
Bank, for distribution and sales support services. Under the Plan, the Fund has
entered into service arrangements with Service Organizations (including PNC Bank
and its affiliates) with respect to each class of Investor Shares and Service
Shares. Refer to the fee table in the "Notes to Financial Statements" for
fee information.
(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 YEAR FOR THE YEAR
ENDED ENDED
9/30/97 9/30/96
-------------- --------------
Shares sold:
Institutional Class ................... $1,685,386,332 $1,482,131,945
Service Class ......................... 3,666,582,530 5,718,258,415
Investor A Class ...................... 476,622,866 295,686,679
Investor B Class ...................... 907,200 115,764
Investor C Class ...................... 1,176,081 --
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 ................... 232,221 13,156
Service Class ......................... 7,520,238 8,291,571
Investor A Class ...................... 10,382,083 4,364,346
Investor B Class ...................... 5,725 1,233
Investor C Class ...................... 593 --
Shares redeemed:
Institutional Class ................... (1,394,768,940) (1,548,608,564)
Service Class ......................... (3,638,822,450) (5,892,912,622)
Investor A Class ...................... (393,060,769) (148,141,000)
Investor B Class ...................... (813,928) (5,214)
Investor C Class ...................... (1,174,511) --
-------------- --------------
Net increase .......................... $ 420,175,271 $ 466,501,738
============== ==============
36
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
U.S. TREASURY MONEY
MARKET PORTFOLIO
----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
9/30/97 9/30/96
--------------- ---------------
Shares sold:
Institutional Class ................... $ 1,713,360,508 $ 1,652,699,602
Service Class ......................... 2,540,717,939 4,101,838,413
Investor A Class ...................... 114,806,287 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 ................... 104,888 108,431
Service Class ......................... 3,201,277 4,272,818
Investor A Class ...................... 1,032,771 281,392
Shares redeemed:
Institutional Class ................... (1,718,626,346) (1,606,090,964)
Service Class ......................... (2,663,322,940) (4,309,339,833)
Investor A Class ...................... (83,046,068) (25,157,768)
--------------- ---------------
Net increase (decrease) ............... $ (91,771,684) $ 460,767,915
=============== ===============
MUNICIPAL
MONEY MARKET PORTFOLIO
-----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
9/30/97 9/30/96
--------------- ---------------
Shares sold:
Institutional Class .................... $ 317,120,148 $ 254,290,132
Service Class .......................... 1,122,149,234 927,781,113
Investor A Class ....................... 17,412,192 2,752,567
Investor C Class ....................... 11,754 --
Shares issued in merger:
Institutional Class .................... -- --
Service Class .......................... -- 37,389,008
Investor A Class ....................... -- --
Investor C Class ....................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................... -- 4,754
Service Class .......................... 1,174,707 1,419,165
Investor A Class ....................... 98,289 4,669
Investor C Class ....................... -- --
Shares redeemed:
Institutional Class .................... (302,308,518) (264,142,296)
Service Class .......................... (1,057,028,541) (970,636,798)
Investor A Class ....................... (10,894,112) (925,748)
Investor C Class ....................... -- --
------------- -------------
Net increase (decrease) ................ $ 87,735,153 $ (12,063,434)
============= =============
37
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
NEW JERSEY MUNICIPAL
MONEY MARKET PORTFOLIO
-------------------------------------------------
FOR THE YEAR FOR THE PERIOD FOR THE PERIOD
ENDED 2/1/96 THROUGH 3/1/95 THROUGH
9/30/97 9/30/96 1/31/96
------------- -------------- --------------
<S> <C> <C> <C>
Prior Class
Exchanged in merger ......................... $ -- $ -- $(56,147,148)
Shares sold ................................. -- -- 68,505,533
Shares issued in reinvestment of dividends .. -- -- 124,356
Shares redeemed ............................. -- -- (56,100,370)
------------- ------------ ------------
-- -- (43,617,629)
Institutional Class
Shares sold ................................. 34,299,530 1,780,000 --
Shares issued in merger ..................... -- -- 4,195,000
Shares issued in reinvestment of dividends .. 17,627 -- --
Shares redeemed ............................. (27,498,897) (5,360,808) --
------------- ------------ ------------
6,818,260 (3,580,808) 4,195,000
Service Class
Exchanged in merger ......................... -- -- 56,154,777
Shares sold ................................. 137,822,928 115,679,773 2,238,112
Shares issued in merger ..................... -- -- 559,547
Shares issued in reinvestment of dividends .. 152,805 97,257 --
Shares redeemed ............................. (104,815,699) (104,595,622) (1,976,807)
------------- ------------ ------------
33,160,034 11,181,408 56,975,629
Investor A Class
Shares sold ................................. 113,438,058 39,216,216 12,203,184
Shares issued in merger ..................... -- -- 12,053,281
Shares issued in reinvestment of dividends .. 630,724 325,948 45,768
Shares redeemed ............................. (109,694,959) (43,890,958) (2,640,160)
------------- ------------ ------------
4,373,823 (4,348,794) 21,662,073
Investor B Class
Shares sold ................................. 40,000 -- --
Shares issued in merger ..................... -- -- --
Shares issued in reinvestment of dividends .. 189 -- --
Shares redeemed ............................. (40,189) -- --
------------- ------------ ------------
-- -- --
------------- ------------ ------------
Net increase ................................ $ 44,352,117 $ 3,251,806 $ 39,215,073
============= ============ ============
</TABLE>
38
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
NORTH CAROLINA MUNICIPAL
MONEY MARKET PORTFOLIO
--------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
9/30/97 9/30/96
------------- -------------
Shares sold:
Institutional Class ................... $ 515,356,166 $ 371,920,387
Service Class ......................... 57,557,439 30,131,643
Investor A Class ...................... 198,135 56,500
Shares issued in reinvestment of dividends:
Institutional Class ................... -- 478
Service Class ......................... 111,126 136,347
Investor A Class ...................... 5,570 2,202
Shares redeemed:
Institutional Class ................... (479,795,565) (336,496,796)
Service Class ......................... (41,427,596) (24,645,317)
Investor A Class ...................... (10,500) (1,000)
------------- -------------
Net increase .......................... $ 51,994,775 $ 41,104,444
============= =============
OHIO MUNICIPAL
MONEY MARKET PORTFOLIO
--------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
9/30/97 9/30/96
------------- -------------
Shares sold:
Institutional Class ................... $ 247,396,323 $ 279,900,577
Service Class ......................... 119,579,274 97,424,650
Investor A Class ...................... 27,674,576 21,631,388
Shares issued in reinvestment of dividends:
Institutional Class ................... 21,464 96,704
Service Class ......................... 594,159 536,941
Investor A Class ...................... 318,914 87,588
Shares redeemed:
Institutional Class ................... (256,621,447) (270,730,685)
Service Class ......................... (107,536,043) (102,290,339)
Investor A Class ...................... (17,789,245) (16,121,036)
------------- -------------
Net increase .......................... $ 13,637,975 $ 10,535,788
============= =============
39
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PENNSYLVANIA MUNICIPAL
MONEY MARKET PORTFOLIO
----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
9/30/97 9/30/96
-------------- -------------
Shares sold:
Institutional Class .................. $ 1,191,362,779 $ 699,970,106
Service Class ........................ 387,153,573 510,380,872
Investor A Class ..................... 413,488,333 344,023,126
Shares issued in merger:
Institutional Class .................. -- --
Service Class ........................ -- 51,341,917
Investor A Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 108,317 81,419
Service Class ........................ 784,774 976,100
Investor A Class ..................... 2,584,961 1,434,393
Shares redeemed:
Institutional Class .................. (1,161,127,715) (734,642,456)
Service Class ........................ (377,662,550) (486,239,639)
Investor A Class ..................... (381,279,008) (282,784,199)
-------------- -------------
Net increase ......................... $ 75,413,464 $ 104,541,639
============== =============
VIRGINIA MUNICIPAL
MONEY MARKET PORTFOLIO
--------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
9/30/97 9/30/96
------------ ------------
Shares sold:
Institutional Class ................... $105,024,816 $ 87,292,017
Service Class ......................... 10,483,122 39,822,130
Investor A Class ...................... 1,558,544 --
Shares issued in reinvestment of dividends:
Institutional Class ................... 251,885 --
Service Class ......................... 97,273 106,079
Investor A Class ...................... 10,473 --
Shares redeemed:
Institutional Class ................... (80,994,943) (73,148,152)
Service Class ......................... (20,304,306) (25,780,943)
Investor A Class ...................... (473,468) --
------------ ------------
Net increase .......................... $ 15,653,396 $ 28,291,131
============ ============
40
<PAGE>
COMPASS CAPITAL FUNDS [GRAPHIC OMITTED]
(D) AT SEPTEMBER 30, 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 ..................... $2,745,167,811 $1,041,769,134 $395,459,488 $130,426,124
Accumulated net realized loss
on investment transactions ....... (7,770)1 (141,572) (322,304)1 (8,712)1
-------------- -------------- ------------ ------------
$2,745,160,041 $1,041,627,562 $395,137,184 $130,417,412
============== ============== ============ ============
</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 ..................... $171,665,742 $97,787,219 $561,865,590 $69,174,189
Accumulated net realized loss
on investment transactions ....... (121) (12,348)1 (12,050)1 (171)
------------ ----------- ------------ -----------
$171,665,621 $97,774,871 $561,853,540 $69,174,018
============ =========== ============ ===========
<FN>
1 Includes $4,564, $1,471, $1,750, $4,223 and $3,403 of deferred post-October
losses as of September 30, 1997, respectively.
</FN>
</TABLE>
(E) CAPITAL LOSS CARRYOVER
At September 30, 1997, capital loss carryovers were available to offset
possible future realized capital gains as follows: $8,609 in the Money Market
Portfolio which expires through 2005, $141,572 in the U.S. Treasury Money Market
Portfolio which expires through 2005, $320,833 in the Municipal Money Market
Portfolio which expires through 2002, $6,907 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, $8,125 in the Ohio
Municipal Money Market Portfolio which expires through 2005, $8,647 in the
Pennsylvania Municipal Money Market Portfolio which expires through 2005, and
$171 in the Virginia Municipal Money Market Portfolio which expires through
2003.
(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.
<TABLE>
<CAPTION>
THE COMPASS CAPITAL GROUP OF FUNDS THE COMPASS CAPITAL FUNDS
- ------------------------------------------------------- -------------------------------------------------------------------------
COMBINED
SHARES NET ASSETS
NET ASSET NEW ISSUED IN AFTER NAV
SHARES AT VALUE AT PORTFOLIO BUSINESS BUSINESS PER
FUND NAME 1/13/96 1/13/96 NAME COMBINATION COMBINATION SHARE
- ---------------------------- ----------- ------------ ---------------------------------- ------------ -------------- ------
<S> <C> <C> <C> <C> <C> <C>
Cash Reserve 547,461,079 $547,306,029 Money Market 547,461,079 $2,573,597,347 $1.00
U.S. Treasury 607,999,373 607,933,712 U.S. Treasury Money Market 607,999,373 1,403,912,997 $1.00
Municipal Money 37,420,876 37,389,008 Municipal Money Market 37,420,876 383,861,249 $1.00
New Jersey Municipal Money 56,147,148 56,154,777 New Jersey Municipal Money Market1 56,147,148 72,306,961 $1.00
Pennsylvania Municipal Money 51,350,576 51,341,917 Pennsylvania Municipal Money Market 51,350,576 533,075,086 $1.00
<FN>
- ------------------
1 The Compass Capital Group of Funds' portfolio is the accounting survivor in
this business combination.
</FN>
</TABLE>
41
<PAGE>
[GRAPHIC OMITTED] COMPASS CAPITAL FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of the Compass Capital Funds:
We have audited the accompanying statements of net assets of the Money
Market, U.S. Treasury Money Market, Municipal Money Market, New Jersey Municipal
Money Market, North Carolina Municipal Money Market, Ohio Municipal Money
Market, Pennsylvania Municipal Money Market and Virginia Municipal Money Market
Portfolios of the Compass Capital Funds (the "Fund") as of September 30, 1997,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years (or periods) in the period
then ended, and the financial highlights for each of the periods presented.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
September 30, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Compass Capital Funds (Money Market, U.S. Treasury Money Market, Municipal Money
Market, New Jersey Municipal Money Market, North Carolina Municipal Money
Market, Ohio Municipal Money Market, Pennsylvania Municipal Money Market and
Virginia Municipal Money Market Portfolios) as of September 30, 1997, the
results of their operations for the year then ended, and the changes in their
net assets for each of the two years (or periods) in the period then ended, and
the financial highlights for each of the periods presented in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
November 14, 1997
42
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Compass Capital Funds
[GRAPHIC OMITTED]
Investment Adviser
PNC Asset Management Group, Inc.
Philadelphia, Pennsylvania 19103
Sub-Adviser
PNC Institutional Management
Corporation
Wilmington, Delaware 19809
Custodian
PNC Bank, National Association
Philadelphia, Pennsylvania 19103
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
Simpson, Thacher & Bartlett
New York, New York 10017
(A partnership which includes professional corporations)
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 $13 BILLION IN 31 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.(SERVICE MARK)
STOCK PORTFOLIOS
Large Cap Value Equity International Equity
Large Cap Growth Equity International Small Cap Equity
Mid-Cap Value Equity International Emerging Markets
Mid-Cap Growth Equity Select Equity
Small Cap Value Equity Index Equity
Small Cap Growth Equity
STOCK & BOND PORTFOLIO
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 31
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>
COMPASS CAPITAL FUNDS
[LOGO OMITTED]
PURE INVESTMENT STYLE(SERVICE MARK)
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 THE PRINCIPAL AMOUNT
INVESTED.
SR 9/30/97-MM
