--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1997
<TABLE>
<CAPTION>
MUNI NEW JERSEY
INTERMEDIATE MUNI
PORTFOLIO PORTFOLIO
------------ ----------
<S> <C> <C>
Investment Income:
Interest........................................... $ 1,023,618 $ 475,458
------------ ----------
Expenses:
Administration fee................................. 7,183 3,821
Shareholder servicing fee.......................... 9,418 5,023
Custodian fee...................................... 1,992 775
Legal and audit fees............................... 9,116 5,777
Directors' fees and expenses....................... 2,770 1,313
Pricing fees....................................... 15,640 7,693
Registration and filing fees....................... 3,816 2,381
Printing........................................... 5,828 2,553
Organizational costs............................... 5,975 1,789
Other expenses..................................... 2,930 116
------------ ----------
Total expenses................................. 64,668 31,241
------------ ----------
Net investment income.................................. 958,950 444,217
------------ ----------
Realized and unrealized gain/(loss) on investments:
Net realized gain/(loss) on investments
during the year.................................. (42,723) 17,254
Net unrealized appreciation or depreciation on
investments during the year...................... 295,021 224,762
------------ ----------
Net realized and unrealized gain on investments........ 252,298 242,016
------------ ----------
Net increase in net assets resulting from operations... $ 1,211,248 $ 686,233
============ ==========
</TABLE>
See Notes to Financial Statements.
--------------- 96 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED OCTOBER 31, 1997
<TABLE>
<CAPTION>
MUNI NEW JERSEY
INTERMEDIATE MUNI
PORTFOLIO PORTFOLIO
------------ -----------
<S> <C> <C>
Net investment income.................................. $ 958,950 $ 444,217
Net realized gain/(loss) on investments................ (42,723) 17,254
Net unrealized appreciation or depreciation on
investments.......................................... 295,021 224,762
------------ -----------
Net increase in net assets resulting from operations... 1,211,248 686,233
Distributions to shareholders:
From net investment income........................... (961,378) (430,888)
Net increase in net assets from capital share
transactions......................................... 498,259 4,316,199
------------ -----------
Net increase in net assets............................. 748,129 4,571,544
NET ASSETS:
Beginning of year...................................... 18,471,060 7,545,140
------------ -----------
End of year............................................ $ 19,219,189 $12,116,684
============ ===========
</TABLE>
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 1996
<TABLE>
<CAPTION>
MUNI NEW JERSEY
INTERMEDIATE MUNI
PORTFOLIO PORTFOLIO
------------ ----------
<S> <C> <C>
Net investment income.................................. $ 943,921 $ 286,784
Net realized loss on investments....................... (2,404) (11,660)
Net unrealized appreciation or depreciation on
investments.......................................... (91,574) (770)
------------ ----------
Net increase in net assets resulting from operations... 849,943 274,354
Distributions to shareholders:
From net investment income........................... (942,468) (279,091)
Net increase in net assets from capital share
transactions......................................... 467,619 1,617,435
------------ ----------
Net increase in net assets............................. 375,094 1,612,698
NET ASSETS:
Beginning of year...................................... 18,095,966 5,932,442
------------ ----------
End of year............................................ $ 18,471,060 $7,545,140
============ ==========
</TABLE>
See Notes to Financial Statements.
--------------- 97 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
MUNI INTERMEDIATE PORTFOLIO
---------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 10.26 $ 10.32 $ 9.74 $ 10.59 $ 10.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income................. 0.52 0.53 0.53 0.53 0.44
Net realized and unrealized
gain/(loss) on investments.......... 0.14 (0.06) 0.58 (0.85) 0.59
------- ------- ------- ------- -------
Total from investment operations...... 0.66 0.47 1.11 (0.32) 1.03
------- ------- ------- ------- -------
Distributions to shareholders from net
investment income................... (0.52) (0.53) (0.53) (0.53) (0.44)
------- ------- ------- ------- -------
Net asset value, end of year.......... $ 10.40 $ 10.26 $ 10.32 $ 9.74 $ 10.59
======= ======= ======= ======= =======
Total Return(1)....................... 6.69% 4.67% 11.76% (3.13)% 10.54%
======= ======= ======= ======= =======
Ratios to average net
assets/Supplemental data:
Net assets, end of year (in 000's).... $19,219 $18,471 $18,096 $22,097 $94,803
Ratio of operating expenses to average
net assets.......................... 0.34% 0.32% 0.28% 0.25% 0.25%
Ratio of net investment income to
average net assets.................. 5.09% 5.16% 5.23% 4.78% 4.41%
Portfolio turnover rate............... 21% 44% 28% 11% 10%
</TABLE>
- ---------------
(1) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
--------------- 98 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NEW JERSEY MUNI PORTFOLIO
------------------------------------------
PERIOD
YEAR ENDED OCTOBER 31, ENDED
--------------------------- OCTOBER 31,
1997 1996 1995 1994(1)
------- ------ ------ -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 9.97 $10.00 $ 9.22 $ 10.00
------- ------ ------ -----------
Income from investment operations:
Net investment income....................... 0.44 0.44 0.41 0.32
Net realized and unrealized gain/(loss) on
investments............................... 0.23 (0.03) 0.78 (0.82)
------- ------ ------ -----------
Total from investment operations............ 0.67 0.41 1.19 (0.50)
------- ------ ------ -----------
Distributions to shareholders from net
investment income......................... (0.44) (0.44) (0.41) (0.28)
------- ------ ------ -----------
Net asset value, end of period.............. $ 10.20 $ 9.97 $10.00 $ 9.22
======= ====== ====== ===========
Total Return(2)............................. 6.90% 4.24% 13.25% (5.13)%
======= ====== ====== ===========
Ratios to average net assets/Supplemental
data:
Net assets, end of period (in 000's)........ $12,117 $7,545 $5,932 $ 4,564
Ratio of operating expenses to average
net assets................................ 0.31% 0.24% 0.53% 0.60%(3)
Ratio of net investment income to average
net assets................................ 4.42% 4.56% 4.30% 3.60%(3)
Portfolio turnover rate..................... 19% 33% 12% 65%
</TABLE>
- ---------------
(1) The Portfolio commenced operations on November 1, 1993.
(2) Total return represents aggregate total return for the period indicated.
(3) Annualized.
See Notes to Financial Statements.
--------------- 99 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
MUNI INTERMEDIATE PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.5%
$ 150,000 Abington, PA, School District, Series A, General
Obligation Unlimited, (FGIC Insured)
5.25% due 5/15/08....................................... $ 155,468
200,000 Allegheny County, PA, Hospital Development Authority
Revenue, University of Pittsburgh, Health Center, Series A
5.30% due 4/1/08........................................ 208,114
175,000 Allegheny County, PA, Series C, General Obligation
Unlimited, (MBIA Insured)
5.875% due 9/15/12...................................... 183,698
90,000 Allegheny County, PA, Redevelopment Authority Revenue
5.20% due 8/1/03........................................ 91,539
125,000 Beaver County, PA, Industrial Development Authority
Pollution Control Revenue, Saint Joe Minerals
Corporation Project
6.00% due 5/1/07........................................ 127,500
190,000 Beaver County, PA, Industrial Development Authority
Pollution Control Revenue, Ohio Edison Co. Mansfield
7.10% due 6/1/18........................................ 205,152
500,000 Beaver Falls, PA, Municipal Authority Water and
Hydroelectric Revenue, (FGIC Insured)
5.70% due 12/1/08....................................... 523,835
100,000 Bethel Park, PA, School District, General Obligation
Unlimited, (FGIC Insured)
5.40% due 8/1/00........................................ 102,252
100,000 Bucks County, PA, Community College Authority College
Building Revenue
6.05% due 6/15/06....................................... 107,216
55,000 Butler County, PA, Airport Authority Revenue
7.25% due 11/1/99....................................... 57,413
100,000 Chambersburg, PA, Area School District, Series B, General
Obligation Unlimited, (AMBAC Insured)
6.625% due 4/1/09....................................... 104,304
325,000 Chester County, PA, General Obligation Unlimited
5.40% due 12/15/06...................................... 339,599
210,000 Coraopolis-Verona Housing Development Corporation,
Multifamily Mortgage Revenue, (FHA Insured)
5.35% due 7/1/03........................................ 216,812
200,000 Dauphin County, PA, General Obligation Unlimited, (MBIA
Insured)
5.40% due 8/1/06........................................ 207,988
</TABLE>
See Notes to Financial Statements.
--------------- 100 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
MUNI INTERMEDIATE PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 125,000 Dauphin County, PA, Series B, General Obligation
Unlimited, (MBIA Insured)
5.20% due 3/15/04....................................... $ 127,781
125,000 Dauphin County, PA, General Authority Revenue
5.00% due 6/1/26........................................ 127,623
100,000 Dauphin County, PA, General Authority Revenue
6.85% due 6/1/26........................................ 106,276
130,000 Dauphin County, PA, General Authority Revenue
6.80% due 6/1/26........................................ 140,310
515,000 Dauphin County, PA, General Authority Revenue
6.00% due 6/1/26........................................ 521,216
250,000 Delaware County, PA, Unrefunded Balance, General
Obligation Unlimited
7.25% due 12/1/00....................................... 250,683
600,000 Delaware River Joint Toll Bridge, Refunding, (FGIC
Insured)
6.15% due 7/1/04........................................ 640,950
200,000 Delaware River Port Authority, PA and NJ Delaware River
Bridges Revenue
6.50% due 1/15/11....................................... 224,514
260,000 Delaware River Port Authority, PA and NJ Delaware River
Bridges Revenue
6.00% due 1/15/10....................................... 285,113
50,000 Delaware River Port Authority, PA and NJ Delaware River
Bridges Revenue
5.625% due 1/15/09...................................... 53,976
100,000 Eastern Montgomery County, PA, Refunding
5.90% due 6/15/02....................................... 100,123
150,000 Eastern Montgomery County, PA, Refunding
5.75% due 6/15/01....................................... 150,180
100,000 Gettysburg, PA, Municipal Authority College Revenue,
Gettysburg College Project
5.95% due 2/15/00....................................... 103,641
100,000 Gettysburg, PA, Municipal Authority County, Guaranteed
Hospital Revenue, Gettysburg Hospital Project, (MBIA
County Guaranteed)
6.20% due 7/1/12........................................ 106,041
570,000 Greene County, PA, Industrial Development Authority,
Pollution Control Revenue, West Pennsylvania Power,
Hatfield Ferry
6.10% due 2/1/07........................................ 570,490
</TABLE>
See Notes to Financial Statements.
--------------- 101 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
MUNI INTERMEDIATE PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 100,000 Greene County, PA, Industrial Development Authority,
Pollution Control Revenue, West Pennsylvania Power,
(MBIA Insured)
6.10% due 2/1/07........................................ $ 100,175
275,000 Hazleton, PA, Area School District, Series A, General
Obligation Unlimited
5.875% due 3/1/10....................................... 290,348
100,000 Hempfield, PA, School District, Lancaster School, General
Obligation Unlimited, (FGIC Insured)
6.10% due 8/15/02....................................... 107,888
40,000 Lancaster, PA, Area Sewer Authority
6.00% due 4/1/12........................................ 42,846
170,000 Lancaster, PA, Higher Education Authority College Revenue,
Franklin & Marshall College Project, (MBIA Insured)
6.55% due 4/15/07....................................... 184,566
375,000 Lycoming County, PA, College Revenue, PA College of
Technology, (AMBAC Insured)
5.20% due 11/1/04....................................... 387,480
100,000 Montgomery County, PA, Higher Education & Health Authority
Hospital Revenue, Abington Memorial Hospital, Series A,
(AMBAC Insured)
5.80% due 6/1/04........................................ 107,155
110,000 Montgomery County, PA, Industrial Development Authority
Revenue
7.50% due 1/1/12........................................ 120,974
100,000 New Kensington, PA, General Obligation Unlimited, (FGIC
Insured)
5.625% due 10/1/04...................................... 102,224
200,000 North East, PA, School District, Refunding, (AMBAC
Insured)
6.00% due 9/15/10....................................... 210,480
150,000 North Pocono, School District, PA, General Obligation
Unlimited, (FGIC Insured)
5.25% due 7/15/06....................................... 153,276
275,000 Penn Trafford, PA, School District, General Obligation
Unlimited, (MBIA Insured)
6.50% due 4/1/06........................................ 290,350
200,000 Pennridge, PA, School District, Series A, General
Obligation Unlimited, (AMBAC Insured)
6.25% due 2/15/04....................................... 213,416
</TABLE>
See Notes to Financial Statements.
--------------- 102 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
MUNI INTERMEDIATE PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 100,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, Series S, (FHA Insured)
7.15% due 10/1/01....................................... $ 104,392
125,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, Series S, (FHA Insured)
7.60% due 4/1/16........................................ 132,451
350,000 Pennsylvania Housing Finance Agency, Refunding, Rental
Housing
5.25% due 7/1/04........................................ 357,669
500,000 Pennsylvania Housing Finance Agency, Refunding, Rental
Housing
5.45% due 7/1/06........................................ 514,725
330,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, Series 38
5.50% due 4/1/05........................................ 338,461
500,000 Pennsylvania Infrastructure Investment Authority Revenue
Pennvest Loan Pool -- Remarket 5/3/93-A
5.90% due 9/1/10........................................ 528,965
300,000 Pennsylvania Intergovernmental Coop Authority, Special Tax
Revenue, City of Philadelphia Funding Program, (FGIC
Insured)
6.00% due 6/15/02....................................... 321,675
200,000 Pennsylvania Intergovernmental Coop Authority, Special Tax
Revenue, City of Philadelphia Funding Program, (FGIC
Insured)
5.25% due 6/15/06....................................... 206,166
50,000 Pennsylvania State, General Obligation Unlimited
8.90% due 10/1/98....................................... 50,328
250,000 Pennsylvania State, First Series, General Obligation
Unlimited
6.375% due 9/15/12...................................... 270,245
375,000 Pennsylvania State, Third Series, General Obligation
Unlimited
5.00% due 9/1/08........................................ 380,865
1,000,000 Pennsylvania State Finance Authority Revenue, Refunding,
Municipal Capital Improvements Program
6.60% due 11/1/09....................................... 1,098,570
695,000 Pennsylvania State Higher Education Assistance Agency
Student Loan Revenue, Refunding, Series A, (FGIC
Insured)
6.80% due 12/1/00....................................... 744,845
250,000 Pennsylvania State Higher Educational Facilities Authority
College and University Revenues, University of
Pennsylvania, Series A
5.60% due 9/1/10........................................ 260,890
</TABLE>
See Notes to Financial Statements.
--------------- 103 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
MUNI INTERMEDIATE PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 140,000 Pennsylvania State Higher Educational Facilities Authority
College and University Revenues, Drexel University
Project
5.65% due 2/1/09........................................ $ 142,566
100,000 Pennsylvania State Higher Educational Facilities Authority
College and University Revenues, Series F, (AMBAC
Insured)
6.00% due 12/15/09...................................... 105,665
25,000 Pennsylvania State Public School Building Authority Lease
Revenue
9.25% due 11/1/97....................................... 25,000
40,000 Perkiomen Valley School Authority, PA, School Revenue,
(MBIA Insured)
6.40% 12/1/02........................................... 42,684
100,000 Philadelphia, PA, Gas Works Revenue
5.50% due 7/1/04........................................ 105,639
100,000 Philadelphia, PA, Hospitals and Higher Educational
Facilities Authority, Hospital Revenue, Children's
Hospital Philadelphia, Series A
5.00% due 2/15/02....................................... 102,472
225,000 Philadelphia, PA, Municipal Authority Revenue,
Refunding -- Lease -- Series C, (FGIC Insured)
5.00% due 4/1/07........................................ 230,942
320,000 Philadelphia, PA, Hospitals Revenue, Hospital University,
PA, (FGIC Insured)
5.875% due 7/1/08....................................... 348,154
260,000 Pittsburgh, PA, Urban Redevelopment Authority Mortgage
Revenue, Series D
5.75% due 10/1/07....................................... 271,573
150,000 Pittsburgh, PA, Urban Redevelopment Authority Mortgage
Revenue, Series D
6.20% due 4/1/11........................................ 156,540
155,000 Pittsburgh, PA, Urban Redevelopment Authority Mortgage
Revenue, Series D
6.20% due 10/1/11....................................... 161,758
110,000 Reading, PA, General Obligation Unlimited, (AMBAC Insured)
6.00% due 11/15/03...................................... 110,138
100,000 Reading, PA, General Obligation Unlimited, (AMBAC Insured)
6.10% due 11/15/04...................................... 100,125
235,000 Ringgold, PA, School District
6.20% due 1/15/13....................................... 255,226
</TABLE>
See Notes to Financial Statements.
--------------- 104 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
MUNI INTERMEDIATE PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 250,000 Sayre, PA, Health Care Facilities Authority Revenue,
(AMBAC Insured)
6.10% due 7/1/02........................................ $ 268,608
100,000 Seneca Valley, PA, School District, Series B, General
Obligation Unlimited, (FGIC Insured)
5.70% due 7/1/06........................................ 104,566
225,000 Seneca Valley, PA, School District, Series B, General
Obligation Unlimited, (FGIC Insured)
5.80% due 7/1/10........................................ 234,175
285,000 Southeastern Pennsylvania Transportation Authority,
Revenue
6.00% due 6/1/01........................................ 301,792
110,000 Southeastern Pennsylvania Transportation Authority,
Revenue
6.00% due 6/1/00........................................ 115,041
40,000 Southeastern Pennsylvania Transportation Authority, PA,
Lease Revenue
5.75% due 12/1/04....................................... 40,064
125,000 Southeastern Pennsylvania Transportation Authority, PA,
Special Revenue
5.05% due 3/1/05........................................ 128,695
250,000 State Public School Building Authority, PA, School
Revenue, Hazleton Area School District Project, (FGIC
Insured)
6.50% due 3/1/08........................................ 266,252
100,000 State Public School Building Authority, PA, School
Revenue, Erie County Area Vocational Technical School G,
(MBIA Insured)
5.45% due 6/15/98....................................... 100,061
100,000 Swarthmore Borough, PA, College Revenue
6.10% due 9/15/07....................................... 108,489
120,000 Swatara Township Authority, PA, Sewer Revenue, (MBIA
Insured)
6.15% due 5/1/07........................................ 134,479
125,000 Unionville-Chadds Ford, PA, School District, General
Obligation Unlimited, (State Aid Withholding)
5.50% due 6/1/08........................................ 128,989
125,000 Wallingford-Swarthmore, PA, School, Series C, (FSA State
Aid Withholding)
5.00% due 5/15/09....................................... 126,225
325,000 Wayne County, PA, Hospital and Health Facilities
Authority, County Guaranteed Hospital Revenue, Wayne
Memorial Hospital Project, (MBIA Insured)
5.05% due 7/1/03........................................ 334,981
</TABLE>
See Notes to Financial Statements.
--------------- 105 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
MUNI INTERMEDIATE PORTFOLIO
STATEMENT OF NET ASSETS -- (CONCLUDED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 240,000 Westmoreland County, PA, Municipal Authority, Municipal
Services Revenue, Series P, (MBIA Insured)
5.80% due 7/1/01........................................ $ 253,075
100,000 Wilkinsburg, PA, Joint Water Authority, Water Revenue,
Series A, (AMBAC Insured)
6.10% due 8/15/04....................................... 107,888
30,000 William Penn, PA, School District, General Obligation
Unlimited
8.00% due 8/1/00........................................ 31,958
170,000 York County, PA, Industrial Development Authority,
Industrial Development Revenue, Refunding, Stanley Works
Project
6.25% due 7/1/02........................................ 182,605
------------
TOTAL INVESTMENTS (Cost $18,367,408(1))....................... 98.3% $ 18,887,657
OTHER ASSETS IN EXCESS OF LIABILITIES......................... 1.7 331,532
------ ------------
NET ASSETS.................................................... 100.0% $ 19,219,189
====== ============
NET ASSET VALUE ($19,219,189 DIVIDED BY 1,848,113 SHARES
OUTSTANDING)................................................ $ 10.40
============
</TABLE>
- ---------------
(1) Aggregate cost for federal tax purposes was $18,367,705.
INSURANCE ABBREVIATIONS:
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance Inc.
MBIA -- Municipal Bond Investors Assurance
See Notes to Financial Statements.
--------------- 106 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NEW JERSEY MUNI PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.1%
$ 100,000 Asbury Park, NJ, Board of Education, General Obligation
Unlimited, (MBIA Insured)
5.55% due 2/1/07........................................ $ 106,773
100,000 Beach Haven, NJ, General Obligation Unlimited, (MBIA
Insured) 5.70% due 8/15/03.............................. 107,153
100,000 Burlington County, NJ, General Obligation Unlimited
5.20% due 9/15/02....................................... 104,226
100,000 Burlington County, NJ, General Obligation Unlimited
5.20% due 10/1/04....................................... 104,171
150,000 Cape May County, NJ, General Improvements, General
Obligation Unlimited, (AMBAC Insured)
5.35% due 8/1/04........................................ 157,965
200,000 Cape May County, NJ, Municipal Utilities Authority, Sewer
Revenue, Refunding, (AMBAC Insured)
5.60% due 1/1/05........................................ 212,824
100,000 Casino Reinvestment Development Authority, NJ, Parking Fee
Revenue, Series A, (FSA Insured)
5.00% due 10/1/04....................................... 103,000
100,000 Delaware River Joint Toll Bridge, Commonwealth of
Pennsylvania Bridge Revenue, Refunding, (FGIC Insured)
6.15% due 7/1/04........................................ 106,825
200,000 Delaware River Joint Toll Bridge, Commonwealth of
Pennsylvania Bridge Revenue, Refunding, (FGIC Insured)
6.25% due 7/1/12........................................ 213,616
335,000 Delaware River Port Authority, PA, NJ, and DE River
Bridges Revenue
5.625% due 1/15/09...................................... 361,639
285,000 Delaware River Port Authority, PA, NJ, and DE River
Bridges Revenue
6.00% due 1/15/10....................................... 312,528
100,000 Delaware River Port Authority, PA, NJ, and DE River
Bridges Revenue
6.50% due 1/15/11....................................... 112,257
25,000 Gloucester County, NJ, General Obligation Unlimited,
Series A, (AMBAC Insured)
4.50% due 1/1/98........................................ 25,029
100,000 Gloucester County, NJ, Improvement Authority Revenue,
County Library Lease Project
5.20% due 12/15/05...................................... 104,023
</TABLE>
See Notes to Financial Statements.
--------------- 107 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NEW JERSEY MUNI PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 200,000 Hasbrouck Heights, NJ, General Improvements, General
Obligation Unlimited
5.25% due 9/1/04........................................ $ 209,326
110,000 High Bridge, NJ, Regional Board of Education, General
Obligation Unlimited, (FSA Insured)
5.40% due 2/15/09....................................... 114,230
250,000 Hudson County, NJ, Certificates of Participation,
Refunding -- Correctional Facilities, (MBIA Insured)
6.20% due 6/1/03........................................ 271,013
200,000 Hunterdon, NJ, Central Regional High School District,
General Obligation Unlimited, (FSA Insured)
5.25% due 5/1/06........................................ 209,490
130,000 Jefferson Township, NJ, General Obligation Unlimited,
Sewer Improvements, (AMBAC Insured)
5.45% due 10/1/09....................................... 136,218
250,000 Jersey City, NJ, School Improvements, General Obligation
Unlimited, (MBIA Insured)
5.50% due 3/15/06....................................... 265,118
100,000 Lyndhurst Township, NJ, General Improvements, General
Obligation Unlimited, (FGIC Insured)
5.50% due 10/1/05....................................... 106,594
105,000 Manalapan-Englishtown, NJ, Regional Board of Education,
General Obligation Unlimited, (School Board Residual
Fund Insured)
5.00% due 5/1/07........................................ 108,204
125,000 Manchester Township, NJ, Board of Education Certificates
of Participation, Refunding, (MBIA Insured)
4.70% due 12/15/02...................................... 127,444
100,000 Mercer County, NJ, Improvement Authority Revenue,
Refunding -- Solid Waste, (County Guaranteed -- Series
97)
5.20% due 9/15/08....................................... 103,403
150,000 Mercer County, NJ, Improvement Authority Revenue,
Refunding -- Governmental Leasing, (County
Guaranteed -- A)
5.40% due 12/1/05....................................... 158,478
285,000 Middlesex County, NJ, Sewer Authority, Refunding
5.625% due 1/1/07....................................... 288,674
250,000 Middlesex County, NJ, Utilities Authority, Sewer Revenue,
Refunding (FGIC Insured)
4.75% due 12/1/08....................................... 251,060
</TABLE>
See Notes to Financial Statements.
--------------- 108 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NEW JERSEY MUNI PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 100,000 Middletown Township, NJ, General Obligation Unlimited
5.00% due 8/1/05........................................ $ 102,970
100,000 Middletown Township, NJ, Sewer Authority, Sewer Revenue,
Refunding -- Series A, (FGIC Insured)
4.65% due 1/1/02........................................ 101,584
200,000 Morris Township, NJ, School District, General Obligation
Unlimited
5.625% due 4/1/06....................................... 213,138
200,000 New Jersey Economic Development Authority, Market
Transition Facilities Revenue, Senior Lien -- Series A,
(MBIA Insured)
5.125% due 7/1/00....................................... 204,964
200,000 New Jersey Economic Development Authority, Market
Transition Facilities Revenue, Senior Lien -- Series A,
(MBIA Insured)
5.70% due 7/1/05........................................ 214,064
125,000 New Jersey Economic Development Authority, Market
Transition Facilities Revenue, Senior Lien -- Series A,
(MBIA Insured)
5.75% due 7/1/06........................................ 134,636
100,000 New Jersey Economic Development Authority, Parking
Facility Improvements Elizabeth Development Project,
(FGIC Insured)
5.20% due 10/15/08...................................... 103,772
75,000 New Jersey Health Care Facilities Finance Authority
Revenue, (Mountainside Hospital), (MBIA Insured)
4.60% due 7/1/00........................................ 75,991
100,000 New Jersey Health Care Facilities Finance Authority
Revenue, (St. Joseph's Hospital & Medical Center -- A)
5.00% due 7/1/03........................................ 102,672
250,000 New Jersey State, General Obligation Unlimited,
Refunding -- Series C
6.50% due 1/15/03....................................... 259,590
100,000 New Jersey State, General Obligation Unlimited,
Refunding -- Series D
5.10% due 2/15/00....................................... 102,421
225,000 New Jersey State Educational Facilities Authority Revenue,
Princeton University -- Series A
5.50% due 7/1/05........................................ 238,752
125,000 New Jersey State Educational Facilities Authority Revenue,
Higher Education Equipment Leasing Fund -- A, (MBIA
Insured)
5.00% due 9/1/00........................................ 127,872
</TABLE>
See Notes to Financial Statements.
--------------- 109 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NEW JERSEY MUNI PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 100,000 New Jersey State Educational Facilities Authority Revenue,
Higher Education Facilities Trust Fund -- Series A,
(AMBAC Insured)
5.125% due 9/1/02....................................... $ 103,781
350,000 New Jersey State Educational Facilities Authority Revenue,
Higher Education Facilities Trust Fund -- Series A,
(AMBAC Insured)
5.125% due 9/1/07....................................... 363,258
125,000 New Jersey State Educational Facilities Authority Revenue,
Higher Education Facilities Trust Fund -- Series A,
(AMBAC Insured)
5.125% due 9/1/08....................................... 128,551
250,000 New Jersey State Highway Authority, Garden State Parkway
General Revenue, Highway Revenue Tolls, (AMBAC Insured)
6.10% due 1/1/06........................................ 269,575
250,000 New Jersey State Highway Authority, Garden State Parkway
General Revenue, Highway Revenue Tolls, (AMBAC Insured)
6.15% due 1/1/07........................................ 270,542
200,000 New Jersey State Housing and Mortgage Finance Agency
Revenue, Local or Guaranteed Housing -- Series A, (HUD
Section 8)
6.50% due 11/1/03....................................... 214,318
150,000 New Jersey State Housing and Mortgage Finance Agency
Revenue, Home Buyer -- Series P, (MBIA Insured)
5.05% due 4/1/07........................................ 153,321
150,000 New Jersey State Transportation Trust Fund Authority,
Transportation System -- Series A, (FSA Insured)
5.30% due 12/15/01...................................... 156,606
100,000 New Jersey State Transportation Trust Fund Authority,
Transportation System -- Series A, (FSA Insured)
4.75% due 6/15/03....................................... 102,372
200,000 New Jersey State Transportation Trust Fund Authority,
Transportation System -- Series B, (MBIA Insured)
5.00% due 6/15/04....................................... 206,240
250,000 New Jersey State Turnpike Authority, Turnpike Revenue,
Series A, (MBIA Insured)
5.90% due 1/1/04........................................ 267,300
145,000 New Jersey Wastewater Treatment Trust -- Series A
6.00% due 7/1/09........................................ 154,222
125,000 New Jersey Wastewater Treatment Trust, Refunding -- Series
C, (MBIA Insured)
6.25% due 5/15/03....................................... 136,705
</TABLE>
See Notes to Financial Statements.
--------------- 110 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NEW JERSEY MUNI PORTFOLIO
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 100,000 Ocean County, NJ, General Improvement, General Obligation
Unlimited
5.65% due 7/1/06........................................ $ 107,920
85,000 Ocean County, NJ, Utility Authority, Wastewater Revenue,
Refunding
5.00% due 1/1/05........................................ 87,468
250,000 Ocean Township, NJ, Sewer Authority
6.00% due 12/1/07....................................... 271,322
200,000 Park Ridge, NJ, General Obligation Unlimited
5.60% due 11/1/03....................................... 213,078
100,000 Passaic Valley, NJ, General Obligation Unlimited, (FGIC
Insured)
5.125% due 9/1/08....................................... 102,601
100,000 Passaic Valley, NJ, Sewer Commission, Sewer
System -- Series D, (AMBAC Insured)
5.75% due 12/1/09....................................... 105,582
130,000 Perth Amboy, NJ, General Obligation Unlimited, (MBIA
Insured)
6.20% due 8/1/06........................................ 143,694
35,000 Port Authority of New York and New Jersey,
Consolidated -- 91st Series
5.50% due 10/1/08....................................... 35,665
115,000 Port Authority of New York, Consolidated
5.80% due 2/1/07........................................ 115,684
300,000 Rutgers State University, NJ, Refunding -- Series S
5.25% due 5/1/97........................................ 309,372
135,000 South Brunswick Township, NJ, General Obligation
Unlimited, (MBIA Insured)
5.25% due 10/1/03....................................... 141,417
130,000 South Brunswick Township, NJ, General Obligation
Unlimited, (MBIA Insured)
5.35% due 4/1/06........................................ 135,179
250,000 Southern Regional High School District, General Obligation
Unlimited, (MBIA Insured)
5.40% due 9/1/04........................................ 264,147
160,000 Sparta Township, NJ, School District, General Obligation
Unlimited, (MBIA Insured)
5.75% due 9/1/04........................................ 172,325
100,000 Surf City, NJ, General Obligation Unlimited, (MBIA
Insured)
5.15% due 1/15/06....................................... 104,143
</TABLE>
See Notes to Financial Statements.
--------------- 111 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NEW JERSEY MUNI PORTFOLIO
STATEMENT OF NET ASSETS -- (CONCLUDED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
$ 100,000 West Orange, NJ, General Obligation Unlimited
5.10% due 1/1/05........................................ $ 103,511
350,000 Western Monmouth Utilities Authority, NJ, Revenue, Series
A, (AMBAC Insured)
5.25% due 2/1/09........................................ 361,361
------------
TOTAL INVESTMENTS (Cost $11,445,355(1))....................... 97.1% $ 11,764,967
OTHER ASSETS IN EXCESS OF LIABILITIES......................... 2.9 351,717
------ ------------
NET ASSETS.................................................... 100.0% $ 12,116,684
====== ============
NET ASSET VALUE ($12,116,684 DIVIDED BY 1,187,867 SHARES
OUTSTANDING)................................................ $ 10.20
============
</TABLE>
- ---------------
(1) Aggregate cost for federal tax purposes was $11,445,916.
INSURANCE ABBREVIATIONS:
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Financial Security Assurance Inc.
MBIA -- Municipal Bond Investors Assurance
See Notes to Financial Statements.
--------------- 112 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Glenmede Portfolios (the "Fund") is an investment company that was
organized as a "Massachusetts business trust" on March 3, 1992 and is registered
with the Securities and Exchange Commission under the Investment Company Act of
1940 as an open-end management Investment company. As of October 31, 1997, the
Fund offered shares of two SubTrusts, the Muni Intermediate Portfolio and the
New Jersey Muni Portfolio (collectively, the "Portfolios"). The following is a
summary of significant accounting policies consistently followed by each
Portfolio in the preparation of its financial statements.
PORTFOLIO VALUATION: Municipal obligations for which market quotations are
readily available are valued at the most recent quoted bid price provided by
investment dealers. Municipal obligations may be valued on the basis of prices
provided by a pricing service when such prices are determined by the Advisor to
reflect the fair market value of such municipal obligations; securities for
which market quotations are not readily available are valued at fair value as
determined in good faith by or under the direction of the Board of Trustees.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded as of the trade date. Realized gains and losses on investments sold are
computed on the basis of identified cost. Interest income is recorded on the
accrual basis and includes the pro rata scientific method for amortization of
premiums and accretion of discounts when appropriate.
Securities purchased or sold on a when-issued or delayed-delivery basis may
be settled a month or more after the trade date. Interest income is not accrued
until settlement date. The Portfolio instructs the custodian to segregate assets
in a separate account with a current value at least equal to the amount of its
when-issued purchased commitments.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment
income, if any, are declared and paid monthly. The Portfolios distribute any net
realized capital gains on an annual basis. Additional distributions of net
investment income and capital gains for each Portfolio may be made at the
discretion of the Board of Directors in order to avoid the 4% nondeductible
Federal excise tax. Income distributions and capital gains distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of income and gains of various investment securities held
by each Portfolio, timing differences and differing characterization of
distributions made by each Portfolio.
ORGANIZATION COSTS: Organization costs are being amortized on the
straight-line basis over periods of five years from the dates on which each
Portfolio commenced operations. The Portfolios' Advisor has agreed that in the
event any of the initial share in any the Portfolios are redeemed during such
period, the appropriate Portfolio will be
--------------- 113 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
reimbursed for any unamortized organization costs in the same proportion as the
number of shares redeemed bears to the number of the initial shares held at the
time of redemption.
FEDERAL INCOME TAXES: Each Portfolio intends to qualify as a regulated
investment company by complying with the requirements of the Internal Revenue
Code applicable to regulated investment companies and by distributing
substantially all of its tax-exempt (and taxable, if any) income to its
shareholders. Therefore, no Federal income tax provision is required.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER PARTY TRANSACTIONS
The Glenmede Trust Company (the "Advisor") provides investment advisory
services to the Fund. The Advisor does not receive a fee from the Portfolios for
its investment advisory services. However, each Portfolio pays The Glenmede
Trust Company a shareholder servicing fee at the annual rate of 0.05% of the
value of its average daily net assets.
Investment Company Capital Corp. ("ICC"), an indirect subsidiary of Bankers
Trust New York Corporation, provides administrative, accounting and transfer
agent services to the Fund. The Fund pays ICC a fee based on the combined
aggregate average daily net assets of the Fund and The Glenmede Fund, Inc., an
investment company with the same officers, Board and service providers as the
Fund (collectively, the "Companies"). This fee is computed daily and paid
monthly at the following annual rates: 0.12% of the first $100 million, 0.08% of
the next $150 million, 0.04% of the next $500 million and 0.03% of the amount in
excess of $750 million. This fee is allocated to each Fund based on its relative
net assets.
The Fund pays each Board member, other than Mr. Church, an annual fee of
$1,000 and out-of-pocket expenses incurred in attending Board meetings.
3. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 1997, cost of purchases and proceeds from
sales of investment securities other than U.S. Government securities and
short-term securities were:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
- --------- ---------- -----------
<S> <C> <C>
Muni Intermediate Portfolio................................. $4,643,532 $ 3,817,806
New Jersey Muni Portfolio................................... 6,170,402 1,931,587
</TABLE>
--------------- 114 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
On October 31, 1997, aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there was an excess of
tax cost over value were as follows:
<TABLE>
<CAPTION>
PORTFOLIO APPRECIATION DEPRECIATION
- --------- ------------ ------------
<S> <C> <C>
Muni Intermediate Portfolio........................... $529,814 $9,862
New Jersey Muni Portfolio............................. 322,332 3,281
</TABLE>
4. SHARES OF BENEFICIAL INTEREST
The Fund may issue an unlimited number of shares of beneficial interest with
a $.001 par value. Changes in shares of beneficial interest outstanding were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED 10/31/97 YEAR ENDED 10/31/96
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
MUNI INTERMEDIATE PORTFOLIO:
Sold................................. 440,883 $ 4,529,900 359,842 $ 3,686,100
Redeemed............................. (392,272) (4,031,641) (313,802) (3,218,481)
-------- ----------- -------- -----------
Net increase......................... 48,611 $ 498,259 46,040 $ 467,619
======== =========== ======== ===========
NEW JERSEY MUNI PORTFOLIO:
Sold................................. 576,081 $ 5,766,400 263,097 $ 2,617,250
Redeemed............................. (144,674) (1,450,201) (100,048) (999,815)
-------- ----------- -------- -----------
Net increase......................... 431,407 $ 4,316,199 163,049 $ 1,617,435
======== =========== ======== ===========
</TABLE>
5. CAPITAL LOSS CARRYFORWARD
On October 31, 1997, the following Portfolios had available capital loss
carryforwards to offset future net capital gains through the indicated
expiration dates as follows:
<TABLE>
<CAPTION>
EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING
PORTFOLIO IN 2000 IN 2001 IN 2002 IN 2003 IN 2004 IN 2005
- --------------------------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Muni Intermediate
Portfolio................ $656 $4,787 $215,936 $549,436 $ 2,107 $42,723
New Jersey Muni
Portfolio................ -- -- 56,594 21,708 11,660 --
</TABLE>
6. CONCENTRATION OF CREDIT
The Muni Intermediate Portfolio and New Jersey Muni Portfolio primarily
invest in debt obligations issued by the Commonwealth of Pennsylvania and the
State of New Jersey, respectively, and their political subdivisions, agencies
and public authorities to obtain funds for various purposes. Each Portfolio is
more susceptible to factors adversely affecting issuers of the respective region
that the Portfolio invests in than is a municipal bond fund that is not
concentrated in these issuers to the same extent. As of October 31, 1997, the
Muni Intermediate Portfolio maintained all of its investments in
--------------- 115 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONCLUDED)
debt obligations issued by the Commonwealth of Pennsylvania and its political
subdivisions and the New Jersey Muni Portfolio maintained a majority of its
investments in debt obligations issued by the State of New Jersey and its
political subdivisions.
7. NET ASSETS
On October 31, 1997, net assets consisted of:
<TABLE>
<CAPTION>
MUNI NEW JERSEY
INTERMEDIATE MUNI
PORTFOLIO PORTFOLIO
------------ -----------
<S> <C> <C>
Par value.............................................. $ 1,848 $ 1,188
Paid in Capital in excess of par value................. 19,432,537 11,843,612
Undistributed net investment income.................... 80,499 42,795
Accumulated net realized loss on investments sold, and
foreign currency transactions........................ (815,944) (90,523)
Net unrealized appreciation or depreciation of
investments and foreign currency transactions........ 520,249 319,612
------------ -----------
Total Net Assets................................... $19,219,189 $12,116,684
=========== ===========
</TABLE>
--------------- 116 ---------------
<PAGE>
--------------------------------
THE GLENMEDE PORTFOLIOS
--------------------------------
TAX INFORMATION (UNAUDITED)
FOR THE YEAR ENDED OCTOBER 31, 1997
Of the dividends paid by the Muni Intermediate Portfolio from net investment
income for the year ended October 31, 1997, 100% is tax-exempt for regular
Federal income taxes and Pennsylvania taxes.
Of the dividends paid by the New Jersey Muni Portfolio from net investment
income for the year ended October 31, 1997, 100% is tax-exempt for regular
Federal income taxes and New Jersey taxes.
--------------- 117 ---------------
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
The Glenmede Portfolios:
We have audited the accompanying statements of net assets of the Muni
Intermediate Portfolio and New Jersey Muni Portfolio of The Glenmede Portfolios,
(the "Portfolios") as of October 31, 1997, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years then ended, and the financial highlights for each of the
five years (or periods) presented. These financial statements and financial
highlights are the responsibility of the Portfolio'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 securities owned as of
October 31, 1997 by correspondence with the custodian and brokers. 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
Glenmede Portfolios as of October 31, 1997, the results of their operations for
the year then ended, the changes in their net assets for each of the two years
then ended and the financial highlights for each of the five years (or periods)
presented in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Philadelphia, Pennsylvania
December 5, 1997
--------------- 118 ---------------
<PAGE>
THE GLENMEDE FUND, INC. AND THE GLENMEDE PORTFOLIOS
OFFICERS AND DIRECTORS/TRUSTEES
John W. Church, Jr. Mary Ann B. Wirts
Chairman, President and Executive Vice President
Director/Trustee
Kimberly C. Osborne
H. Franklin Allen, Ph.D. Vice President
Director/Trustee
Michael P. Malloy
Willard S. Boothby, Jr. Secretary
Director/Trustee
Joseph A. Finelli
Francis J. Palamara Treasurer
Director/Trustee
Edward J. Veilleux
G. Thompson Pew, Jr. Assistant Secretary
Director/Trustee
INVESTMENT ADVISOR INVESTMENT SUB-ADVISOR
The Glenmede Trust Company (for Emerging Markets Portfolio)
One Liberty Place Pictet International Management Limited
1650 Market Street, Suite 1200 Cutlers Garden
Philadelphia, Pennsylvania 19103 5 Devonshire Square
London, United Kingdom EC2M 4LD
ADMINISTRATOR
Investment Company Capital Corp. DISTRIBUTOR
P.O. Box 515 ICC Distributors, Inc.
Baltimore, Maryland 21203 P.O. Box 7558
Portland, Maine 04101
CUSTODIAN
The Chase Manhattan Bank, N.A.
3 Chase Metrotech Center
Brooklyn, NY 11245
LEGAL COUNSEL
Drinker Biddle & Reath LLP
Philadelphia National Bank Bldg.
1345 Chestnut Street
Philadelphia, Pennsylvania 19107
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania 19103
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
The report is submitted for the general information of the shareholders of The
Glenmede Fund, Inc. and The Glenmede Portfolios. It is not authorized for
distribution to prospective investors unless accompanied or preceded by an
effective prospectus for the Funds, which contains information concerning the
Fund's investment policies and expenses as well as other pertinent information.
