MONARCH FUNDS, 485APOS, 1997-11-25

MONARCH FUNDS
485APOS, 1997-11-25

Previous: KRANZCO REALTY TRUST, 8-K, 1997-11-25

Next: VAN KAMPEN AMERICAN CAPITAL U S GOVERNMENT TRUST FOR INCOME, N-30D, 1997-11-25

As filed with the Securities and Exchange Commission on November 25, 1997

File No. 33-49570
File No. 811-6742

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Post-Effective Amendment No. 14

and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 15

MONARCH FUNDS
(Exact Name of Registrant as Specified in its Charter)

Two Portland Square, Portland, Maine 04101
(Address of Principal Executive Office)

Registrant's Telephone Number, including Area Code: 207-879-1900

David I. Goldstein, Esq.
Forum Financial Services, Inc.
Two Portland Square, Portland, Maine 04101
(Name and Address of Agent for Service)

It is proposed that this filing will become effective:

_____ immediately upon filing pursuant to Rule 485, paragraph (b)
_____ on [ ] pursuant to Rule 485, paragraph (b)

__X__ 60 days after filing pursuant to Rule 485, paragraph (a)(i)

_____ on [ ] pursuant to Rule 485, paragraph (a)(i)
_____ 75 days after filing pursuant to Rule 485, paragraph (a)(ii)
_____ on [ ] pursuant to Rule 485, paragraph (a)(ii)

_____ this post-effective amendment designates a new effective date for a
previously filed post-effective amendment

A Rule 24f-2 Notice for the Registrant's fiscal year ended August 31, 1996 was
filed with the Commission on October 29, 1996. A Rule 24f-2 Notice for the
Registrant's fiscal year ended August 31, 1997 will be filed with the Commission
on or before November 28, 1997. EACH FUND OF THE REGISTRANT IS CURRENTLY
STRUCTURED AS A MASTER-FEEDER FUND. THIS AMENDMENT INCLUDES A MANUALLY EXECUTED
SIGNATURE PAGE FOR THE MASTER FUNDS, EACH A SERIES OF CORE TRUST (DELAWARE).

CROSS REFERENCE SHEET
(AS REQUIRED BY RULE 404(C))

<S> <C> <C> <C>
FORM N-1A LOCATION IN PROSPECTUS
ITEM NO. (CAPTION)

PART A

Item 1. Cover Page Cover Page

Item 2. Synopsis Prospectus Summary

Item 3. Condensed Financial Financial Highlights; Other Information
Information

Item 4. General Description of Registrant Prospectus Summary; Investment Objective and
Policies; Other Information

Item 5. Management of the Fund Prospectus Summary; Management of the Trust

Item 5A. Management's Discussion of Not Applicable
Fund Performance

Item 6. Capital Stock and Investment Objective and Policies;
Other Securities Dividends and Tax Matters; Other Information;
Purchases of Shares; Redemptions of Shares

Item 7. Purchase of Securities Purchases of Shares; Determination
Being Offered of Net Asset Value; Management of the Trust

Item 8. Redemption or Repurchase Redemptions of Shares

Item 9. Pending Legal Proceedings Not Applicable

</TABLE>

<S> <C> <C> <C>
LOCATION IN STATEMENT
FORM N-1A OF ADDITIONAL INFORMATION
ITEM NO. (CAPTION)

PART B

Item 10. Cover Page Cover Page

Item 11. Table of Contents Cover Page

Item 12. General Information and History Management

Item 13. Investment Objectives and Policies Investment Policies; Investment Limitations

Item 14. Management of the Fund Management; Other Information

Item 15. Control Persons and Principal Management; Other Information
Holders of Securities

Item 16. Investment Advisory and Other Management; Other Information
Services

Item 17. Brokerage Allocation Portfolio Transactions
and Other Practices

Item 18. Capital Stock and Other Securities Determination of Net Asset Value

Item 19. Purchase, Redemption and Pricing Determination of Net Asset Value;
of Securities Being Offered Additional Purchase and Redemption Information

Item 20. Tax Status Taxation

Item 21. Underwriters Management

Item 22. Calculation of Performance Data Performance Data

Item 23. Financial Statements Financial Statements
</TABLE>

<PAGE>

MONARCH FUNDS
================================================================================

UNIVERSAL SHARES

Treasury Cash Fund
Government Cash Fund
Cash Fund
PROSPECTUS

[ ]

- --------------------------------------------------------------------------------
This Prospectus offers Universal Shares of Treasury Cash Fund, Government Cash
Fund and Cash Fund (each a "Fund" and collectively the "Funds"). Each Fund is a
diversified money market portfolio of Monarch Funds (the "Trust"), an open-end,
management investment company. Each Fund seeks to provide its shareholders with
high current income to the extent consistent with the preservation of capital
and the maintenance of liquidity.

Each of Treasury Cash Fund, Government Cash Fund and Cash Fund seeks to achieve
its investment objective by investing all of its investable assets in Treasury
Cash Portfolio, Government Cash Portfolio and Cash Portfolio (each a "Portfolio"
and collectively the "Portfolios"), respectively, separate series of Core Trust
(Delaware) ("Core Trust"), an open-end management investment company. See "Other
Information - Fund Structure." Accordingly, each Fund's investment experience
will correspond directly with that of the Portfolio in which it invests. Through
its corresponding Portfolio:

TREASURY CASH FUND invests primarily in obligations of the U.S.
Treasury and in repurchase agreements backed by these obligations.

GOVERNMENT CASH FUND invests primarily in high-quality obligations of
the U.S. Government, its agencies and instrumentalities and in
repurchase agreements backed by these obligations.

CASH FUND invests in a broad spectrum of high-quality money market
instruments.

This Prospectus sets forth concisely the information concerning the Trust and
the Funds that a prospective investor should know before investing. Investors
should read this Prospectus and retain it for future reference. The Trust has
filed with the Securities and Exchange Commission ("SEC") a Statement of
Additional Information dated [ ], as may be amended ("SAI"), which
contains more detailed information about the Trust and the Funds and which is
incorporated herein by reference. The SAI is available without charge by
contacting the Trust's distributor, Forum Financial Services, Inc., at Two
Portland Square, Portland, Maine 04101.

- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
TABLE OF CONTENTS

1. Prospectus Summary............................ 5. Purchases of Shares...............................
2. Financial Highlights.......................... 6. Redemptions of Shares.............................
3. Investment Objective and Policies............. 7. Distributions and Tax Matters.....................
4. Management.................................... 8. Other Information................................

</TABLE>
- --------------------------------------------------------------------------------

THERE CAN BE NO ASSURANCE THAT ANY FUND WILL BE ABLE TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE.

FUND SHARES ARE NOT OBLIGATIONS, DEPOSITS OR ACCOUNTS OF, OR ENDORSED OR
GUARANTEED BY, ANY BANK OR ANY AFFILIATE OF A BANK AND ARE NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT, THE FDIC, THE FEDERAL RESERVE SYSTEM OR ANY
OTHER FEDERAL AGENCY.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

<PAGE>

1. PROSPECTUS SUMMARY

FUND HIGHLIGHTS

This prospectus offers shares of the Universal class ("Universal Shares") of
each of the three "money market" Funds of Monarch Funds. The Funds operate in
accordance with the provisions of Rule 2a-7 under the Investment Company Act of
1940.

MANAGEMENT. Forum Financial Services, Inc. ("Forum") supervises the overall
management of the Funds and the Portfolios and is the distributor of the Funds'
shares. Forum Investment Advisors, LLC (the "Adviser") is the investment adviser
of each Portfolio and provides professional management of the Portfolio's
investments. The Trust's transfer agent and dividend disbursing agent is Forum
Financial Corp. See "Management" for a description of the services provided and
fees charged to the Funds.

PURCHASES AND REDEMPTIONS. The minimum initial investment in Universal Shares is
$1,000,000. Universal Shares may be purchased and redeemed Monday through
Friday, between the hours of 6:00 a.m. and 3:00 p.m., Pacific time, except on
Federal holidays and other days that the Federal Reserve Bank of San Francisco
is closed ("Fund Business Days"). To be eligible to receive that days' income,
purchase orders must be received by the Transfer Agent in good order no later
than 11:00 a.m., Pacific time. Shareholders may elect to have redemptions of
over $5,000 redeemed by bank wire to a designated bank account. To be able to
receive redemption proceeds by wire on the day of the redemption, redemption
orders must be received by the transfer agent in good order no later than 11:00
a.m., Pacific time. All times may be changed without notice by management due to
market activities. See "Purchases of Shares" and "Redemptions of Shares."

EXCHANGES. Shareholders may exchange Universal Shares for Universal Shares of
the other Funds. See "Redemptions of Shares - Exchange Program."

DISTRIBUTIONS. Distributions of net investment income are declared daily and
paid monthly by each Fund and are automatically reinvested in additional Fund
shares unless the shareholder has requested payment in cash. See "Distributions
and Tax Matters."

INVESTMENT CONSIDERATIONS. There can be no assurance that any Fund will be able
to maintain a stable net asset value of $1.00 per share. Although the Funds
invest in money market instruments, all securities, including U.S. Government
Securities, involve some level of investment risk. An investment in a Fund is
not insured by the FDIC, nor is it insured or guaranteed against loss of
principal.

EXPENSES OF INVESTING IN THE FUNDS

The purpose of the following table is to assist investors in understanding the
various expenses that an investor in Universal Shares will bear directly or
indirectly. There are no transaction expenses associated with purchases,
redemptions or exchanges of Fund shares. For a further description of the
various expenses incurred in the operation of the Funds and the Portfolios, see
"Management." Expenses for each Fund are based on the Funds' fiscal year ended
August 31, 1996 except that expenses for Treasury Cash Fund are estimated for
its fiscal year ending August 31, 1997.

ANNUAL OPERATING EXPENSES (as a percentage of average net assets)(1)
<TABLE>
<S> <C> <C> <C>
Treasury Government
Cash Fund Cash Fund Cash Fund
--------- --------- ---------
Management Fees(2) (after fee waivers) 0.09% 0.09% 0.08%
Rule 12b-1 Fees None None None
Other Expenses (after expense reimbursements) 0.18% 0.09% 0.19%
----- ----- -----
Total Operating Expenses 0.27% 0.18% 0.27%
</TABLE>

(1) All information includes the Fund's pro rata portion of the expenses of its
corresponding Portfolio. Absent expense reimbursements and fee waivers, the
expenses of Treasury Cash Fund, Government Cash Fund and Cash Fund would
be: Management Fees; 0.14%, 0.14% and 0.14%; Other Expenses; 0.36%, 0.14%
and 0.29%; and Total Operating Expenses, 0.50%, 0.28% and 0.43%.

(2) Includes all advisory, management and administration fees.

2
<PAGE>

EXAMPLE

You would pay directly or indirectly the following expenses on a $1,000
investment in Universal Shares, assuming a 5% annual return and redemption at
the end of each period:
<TABLE>
<S> <C> <C> <C> <C>
One Year Three Years Five Years Ten Years
-------- ----------- ---------- ---------
Treasury Cash Fund $3 $9 $15 $34
Government Cash Fund $2 $6 $11 $24
Cash Fund $3 $9 $15 $34
</TABLE>

The example is based on the expenses listed in the table above and assumes the
reinvestment of all distributions. THE EXAMPLE SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR RETURN. ACTUAL EXPENSES AND RETURN
MAY BE GREATER OR LESS THAN INDICATED.

2. FINANCIAL HIGHLIGHTS

The following information represents selected data for a single outstanding
Universal Share of Government Cash Fund and Cash Fund for the periods indicated.
Until August 31, 1995, the Funds invested directly in portfolio securities. As
of August 31, 1996, no Universal Shares of Treasury Cash Fund were outstanding;
selected data for a single outstanding Institutional Share of that Fund is
shown. This information has been audited by [ ], independent
auditors. The Funds' financial statements and the independent auditors' report
thereon are incorporated by reference into the SAI and may be obtained without
charge upon request.

Beginning Ratios to Average Net
Net Distri- Assets Net Ratio to
Asset butions Ending -------------------- Assets at Average Net
Value Net From Net Net Asset Net Period Assets
Per Investment Investment Value per Investment Total (000's Gross
Share Income Income Share Expenses Income Return Omitted) Expenses(a)
----- ------ ------ ----- -------- ------ ------ -------- -----------

TREASURY CASH FUND
INSTITUTIONAL SHARES
Year Ended August 31, 1996 $ 1.00 $0.05 $(0.05) $ 1.00 0.45% 5.01% 5.15% $79,259(c) 0.69%
Year Ended August 31, 1995 1.00 0.05 (0.05) 1.00 0.42% 5.18% 5.28% 28,530 0.86%
Year Ended August 31, 1994 1.00 0.03 (0.03) 1.00 0.42% 3.03% 3.11% 41,194 0.74%
Jul. 12, 1993 to Aug. 1.00 ------ ------ 1.00 0.45%(b) 2.65%(b) 2.81%(b) 39,660 1.09%(b)
31,1993

GOVERNMENT CASH FUND
UNIVERSAL SHARES
Year Ended August 31, 1996 1.00 0.05 (0.05) 1.00 0.19% 5.43% 5.59% 248,986(c) 0.28%
Year Ended August 31, 1995 1.00 0.06 (0.06) 1.00 0.24% 5.46% 5.78% 182,546 0.52%
Year Ended August 31, 1994 1.00 0.04 (0.04) 1.00 0.28% 3.48% 3.64% 158,798 0.49%
Oct. 29, 1992 to Aug. 31, 1.00 0.03 (0.03) 1.00 0.21%(b) 3.19%(b) 3.23%(b) 158,516 0.52%(b)
1993

CASH FUND
UNIVERSAL SHARES
Year Ended August 31, 1996 1.00 0.05 (0.05) 1.00 0.27% 5.48% 5.53% 3,272(c) 0.43%
Year Ended August 31, 1995 1.00 0.06 (0.06) 1.00 0.27% 5.59% 5.75% 26,525 0.56%
Year Ended August 31, 1994 1.00 0.04 (0.04) 1.00 0.27% 3.50% 3.69% 22,105 0.55%
Dec. 1, 1992 to Aug. 31, 1.00 0.03 (0.03) 1.00 0.25%(b) 3.29%(b) 3.36%(b) 47,854 0.62%(b)
1993

</TABLE>

(a) During each period, various fees and expenses were waived and reimbursed,
respectively. The ratio of Gross Expenses to Average Net Assets reflects
the expense ratio in the absence of any waivers and reimbursements for the
Fund and its respective Portfolio.

(b) Annualized.

(c) As of August 31, 1996, the total assets of each Fund (combining the assets
of each class of shares) was: Treasury Cash Fund, $83,240,154, Government
Cash Fund, $505,623,107, and Cash Fund, $125,735,874.

3
<PAGE>

3. INVESTMENT OBJECTIVE AND POLICIES

Each Fund has an investment policy that allows it to invest all of its
investable assets in its corresponding Portfolio. All other investment policies
of each Fund and its corresponding Portfolio are identical. Therefore, although
the following discusses the investment policies of the Portfolios (and the
responsibilities of Core Trust's board of trustees (the "Core Trust Board")), it
applies equally to the Funds (and the Trust's board of trustees (the "Board")).

INVESTMENT OBJECTIVE

The investment objective of each Fund is to provide high current income to the
extent consistent with the preservation of capital and the maintenance of
liquidity. Each Fund currently seeks to achieve its investment objective by
investing all of its investable assets in its corresponding Portfolio, which has
the same investment objective. There can be no assurance that any Fund or
Portfolio will achieve its investment objective.

INVESTMENT POLICIES

The Portfolios invest only in high quality, U.S. dollar-denominated short-term
money market instruments that are determined by the Adviser, pursuant to
procedures adopted by the Core Trust Board, to be eligible for purchase and to
present minimal credit risks. High quality instruments include those that (i)
are rated (or, if unrated, are issued by an issuer with comparable outstanding
short-term debt that is rated) in the highest rating category by two nationally
recognized statistical rating organizations ("NRSROs") or, if only one NRSRO has
issued a rating, by that NRSRO or (ii) are otherwise unrated and determined by
the Adviser to be of comparable quality. A description of the rating categories
of certain NRSROs, such as Standard & Poor's Corporation and Moody's Investors
Service, Inc., is contained in the SAI.

Each Portfolio invests only in instruments that have a remaining maturity of 397
days or less (as calculated under Rule 2a-7 under the Investment Company Act of
1940 (the "1940 Act")) and maintains a dollar-weighted average portfolio
maturity of 90 days or less. Except to the limited extent permitted by Rule 2a-7
and except for U.S. Government Securities, each Portfolio will not invest more
than 5% of its total assets in the securities of any one issuer. As used in this
prospectus, "U.S. Government Securities" means obligations issued or guaranteed
as to principal and interest by the United States Government, its agencies or
instrumentalities and "Treasury Securities" means U.S. Treasury bills and notes
and other U.S. Government Securities which are guaranteed as to principal and
interest by the U.S. Treasury.

Although each Portfolio only invests in high quality money market instruments,
an investment in a Portfolio is subject to risk even if all securities in the
Portfolio's portfolio are paid in full at maturity. All money market
instruments, including U.S. Government Securities, can change in value when
there is a change in interest rates, the issuer's actual or perceived
creditworthiness or the issuer's ability to meet its obligations.

TREASURY CASH PORTFOLIO

Treasury Cash Portfolio seeks to maintain its investment objective by investing
substantially all of its assets in Treasury Securities and in repurchase
agreements backed by Treasury Securities.

GOVERNMENT CASH PORTFOLIO

Government Cash Portfolio seeks to attain its investment objective by investing
substantially all of its assets in U.S. Government Securities and in repurchase
agreements backed by U.S. Government Securities. The U.S. Government Securities
in which the Portfolio may invest include Treasury Securities and securities
supported primarily or solely by the creditworthiness of the issuer, such as
securities of the Federal National Mortgage Association. There is no guarantee
that the U.S. Government will support securities not backed by its full faith
and credit. Accordingly, although these securities have historically involved
little risk of loss of principal if held to maturity, they may involve more risk
than securities backed by the U.S. Government's full faith and credit.

CASH PORTFOLIO

Cash Portfolio seeks to attain its investment objective by investing in a broad
spectrum of money market instruments. The Portfolio may invest in (i)
obligations of domestic financial institutions, (ii) U.S. Government Securities
(see "Investment Objective and Policies - Government Cash Portfolio") and (iii)
corporate debt obligations of domestic issuers.

Financial institution obligations include negotiable certificates of deposit,
bank notes, bankers' acceptances and time deposits of banks (including savings
banks and savings associations) and their foreign branches. The Portfolio limits
its investments in bank obligations to banks which at the time of investment
have total assets in excess of one billion dollars. Certificates of deposit
represent an institution's obligation to repay funds deposited with it that earn
a specified interest rate over a given period. Bank notes are debt obligations
of a bank. Bankers' acceptances are negotiable obligations of a bank to pay a
draft which has been drawn by a customer and are usually backed by goods in
international trade. Time deposits are non-

4
<PAGE>

negotiable deposits with a banking institution that earn a specified interest
rate over a given period. Certificates of deposit and fixed time deposits, which
are payable at the stated maturity date and bear a fixed rate of interest,
generally may be withdrawn on demand by the Portfolio but may be subject to
early withdrawal penalties which could reduce the Portfolio's yield.

Corporate debt obligations include commercial paper (short-term promissory
notes) issued by companies to finance their, or their affiliates', current
obligations. The Portfolio may also invest in commercial paper or other
corporate securities issued in "private placements" without registration under
the Securities Act of 1933. These "restricted securities" are restricted as to
disposition under the Federal securities laws in that any sale of these
securities may not be made absent registration under the Securities Act of 1933
or an appropriate exemption therefrom.

ADDITIONAL INVESTMENT POLICIES

Each Fund's and each Portfolio's investment objective and certain investment
limitations, as described in the SAI, may not be changed without approval of the
holders of a majority of the Fund's or Portfolio's, as applicable, outstanding
voting securities (as defined in the 1940 Act). Except as otherwise indicated in
this prospectus or in the SAI, investment policies of a Fund or a Portfolio may
be changed by the applicable board of trustees without shareholder approval.
Each Portfolio may borrow money for temporary or emergency purposes (including
the meeting of redemption requests), but not in excess of 33 1/3% of the value
of the Portfolio's total assets. Borrowing for purposes other than meeting
redemption requests will not exceed 5% of the value of the Portfolio's total
assets. Each Portfolio is permitted to hold cash in any amount pending
investment in securities and may invest in other investment companies that
intend to comply with Rule 2a-7 and have substantially similar investment
objectives and policies. To the extent a Portfolio invests in other money funds,
it will indirectly bear the expenses of those funds. A further description of
the Funds' and the Portfolios' investment policies is contained in the SAI.

REPURCHASE AGREEMENTS. Each Portfolio may seek additional income by entering
into repurchase agreements. Repurchase agreements are transactions in which a
Portfolio purchases a security and simultaneously commits to resell that
security to the seller at an agreed-upon price on an agreed-upon future date,
normally one to seven days later. The resale price reflects a market rate of
interest that is not related to the coupon rate or maturity of the purchased
security. Core Trust holds the underlying collateral, which is maintained at not
less than 100% of the repurchase price. Repurchase agreements involve certain
risks not associated with direct investment in securities. The Portfolios,
however, intend to enter into repurchase agreements only with sellers which the
Adviser believes present minimal credit risks in accordance with guidelines
established by the Core Trust Board. In the event that a seller defaulted on its
repurchase obligation, however, a Portfolio might suffer a loss.

LIQUIDITY. To ensure adequate liquidity, each Portfolio may not invest more than
10% of its net assets in illiquid securities, including repurchase agreements
not entitling the Portfolio to payment of principal within seven days. There may
not be an active secondary market for securities held by a Portfolio. The value
of securities that have a limited market tend to fluctuate more than those that
have an active market. For this reason, a Portfolio could suffer a loss with
respect to an instrument. The Adviser monitors the liquidity of the Portfolios'
investments, but there can be no guarantee that an active secondary market will
exist.

WHEN-ISSUED SECURITIES. In order to assure itself of being able to obtain
securities at prices which the Adviser believes might not be available at a
future time, each Portfolio may purchase securities on a when-issued or delayed
delivery basis. Securities so purchased are subject to market price fluctuation
and no interest on the securities accrues to a Portfolio until delivery and
payment take place. Accordingly, the value of the securities on the delivery
date may be more or less than the purchase price. Commitments for when-issued or
delayed delivery transactions will be entered into only when a Portfolio has the
intention of actually acquiring the securities. Failure by the other party to
deliver a security purchased by a Portfolio may result in a loss or missed
opportunity to make an alternative investment.

VARIABLE AND FLOATING RATE SECURITIES. The securities in which the Portfolios
invest may have variable or floating rates of interest. These securities pay
interest at rates that are adjusted periodically according to a specified
formula, usually with reference to some interest rate index or market interest
rate. The interest paid on these securities is a function primarily of the index
or market rate upon which the interest rate adjustments are based. Securities
with ultimate maturities of greater than 397 days may be purchased in accordance
with the provisions to Rule 2a-7. Under that Rule, only those long-term
instruments that have demand features that comply with certain requirements and
certain long-term U.S. Government Securities may be purchased. Similar to fixed
rate debt instruments, variable and floating rate instruments are subject to
changes in value based on changes in market interest rates or changes in the
issuer's creditworthiness.

No Portfolio may purchase a variable or floating rate security whose interest
rate is adjusted based on a long-term interest rate or index, on more than one
interest rate or index, or on an interest rate or index that materially lags
short-term market rates (these prohibited securities are often referred to as
"derivative" securities). All variable and floating rate securities

5
<PAGE>

purchased by a Portfolio will have an interest rate that is adjusted based on a
single short-term rate or index, such as the Prime Rate.

FINANCIAL INSTITUTION GUIDELINES. Treasury Cash Portfolio and Government Cash
Portfolio invest only in instruments which, if held directly by a bank or bank
holding company organized under the laws of the United States or any state
thereof, would be assigned to a risk-weight category of no more than 20% under
the current risk based capital guidelines adopted by the Federal bank
regulators. In addition, these Portfolios limit their investments to those
permissible for Federally chartered credit unions under applicable provisions of
the Federal Credit Union Act and the applicable rules and regulations of the
National Credit Union Administration. Government Cash Portfolio limits its
investments to investments that are legally permissible for Federally chartered
savings associations without limit as to percentage and to investments that
permit Fund shares to qualify as liquid assets and as short-term liquid assets.

4. MANAGEMENT

The business of the Trust is managed under the direction of the Board and the
business of Core Trust is managed under the direction of the Core Trust Board.
The Board formulates the general policies of the Funds and meets periodically to
review the results of the Funds, monitor investment activities and practices and
discuss other matters affecting the Fund and the Trust. The SAI contains general
background information about the trustees and officers of the Trust and of Core
Trust.

MANAGER AND INVESTMENT ADVISER

Forum supervises the overall management of the Trust, including overseeing the
Trust's receipt of services, advising the Trust and the Trustees on matters
concerning the Trust and its affairs, and providing the Trust with general
office facilities and certain persons to serve as officers. For these services
and facilities, Forum receives a fee at an annual rate of 0.05% of the daily net
assets of each Fund. Forum also serves as administrator of Core Trust and
provides administrative services for each Portfolio that are similar to those
provided to the Funds. For its administrative services to the Portfolios, Forum
receives a fee at an annual rate of 0.05% of the average daily net assets of
each Portfolio.

As of the date hereof Forum acted as manager and distributor of registered
investment companies with assets of approximately $17 billion. Forum, is a
registered broker-dealer and is a member of the National Association of
Securities Dealers, Inc. As of the date of this Prospectus, Forum, the Adviser
and the Trust's transfer agent were each directly controlled by John Y. Keffer,
an officer and Trustee of the Trust and of Core Trust. Forum and the Adviser are
located at Two Portland Square, Portland, Maine 04101.

Subject to the general supervision of the Core Trust Board, the Adviser makes
investment decisions for each Portfolio and monitors the Portfolios'
investments. In addition to the Portfolios, the Adviser currently provides
investment advisory services to five other mutual funds, including one money
market fund, Treasury Portfolio of Core Trust. Under supervision of the Adviser,
Mr. Anthony R. Fischer, Jr. acts as each Portfolio's portfolio manager pursuant
to a consulting agreement with the Adviser.

For its services, the Adviser receives from each Portfolio an advisory fee based
upon the total average daily net assets of the three Portfolios ("Total
Portfolio Assets") that is calculated on a cumulative basis as follows: 0.06% of
the first $200 million of Total Portfolio Assets, 0.04% of the next $300 million
of Total Portfolio Assets, and 0.03% of the remaining Total Portfolio Assets.

SHAREHOLDER SERVICING

Forum Financial Corp. (the "Transfer Agent"), a registered transfer agent, acts
as the Trust's transfer agent and dividend disbursing agent. The Transfer Agent
maintains an account for each shareholder of the Funds (unless such accounts are
maintained by sub-transfer agents or processing agents) and performs other
transfer agency and related functions.

The Transfer Agent is authorized to subcontract any or all of its functions to
one or more qualified sub-transfer agents or processing agents, which may be its
affiliates, who agree to comply with the terms of the Transfer Agent's agreement
with the Trust. The Transfer Agent may pay those agents for their services, but
no such payment will increase the Transfer Agent's compensation from the Trust.
For its services, the Transfer Agent is paid a transfer agent fee at an annual
rate of 0.05% of the average daily net assets of each Fund attributable to
Universal Shares plus $12,000 per year and certain account

6
<PAGE>

and additional class charges and is reimbursed for certain expenses incurred on
behalf of the Funds. Forum Financial Corp. is also paid a separate fee for its
portfolio accounting services to each Portfolio.

EXPENSES

Each Fund bears all of its expenses, which include Trust expenses attributable
to the Fund, which are allocated to the Fund, and expenses not specifically
attributable to any Fund, which are allocated among the Funds in proportion to
their average net assets. Each service provider may elect to waive (or continue
to waive) all or a portion of its fees and may reimburse a Fund for certain
expenses. Any such waivers or reimbursements will have the effect of increasing
the Fund's performance for the period during which the waiver or reimbursement
is in effect. No fee waivers may be recouped at a later date.

5. PURCHASES OF SHARES

GENERAL INFORMATION

All transactions in Fund shares are effected through the Transfer Agent, which
accepts orders for purchases only from shareholders of record and new investors.
The minimum initial investment in Universal Shares is $1,000,000. Shareholders
of record will receive from the Trust monthly statements listing all account
activity during the statement period. The Trust reserves the right in the future
to modify, limit or terminate any shareholder privilege upon appropriate notice.

Fund shares are sold on a continuous basis at their next determined net asset
value on all Fund Business Days. Fund shares are issued immediately following
the next determination of the Fund's net asset value made after an order for the
shares in proper form, accompanied by funds on deposit at a Federal Reserve Bank
("Federal Funds"), is received by the Transfer Agent. An investor's funds will
not be accepted or invested by a Fund during the period before the Fund's
receipt of Federal Funds. The Trust reserves the right to reject any
subscription for the purchase of Fund shares.

Investors may obtain the account application necessary to open an account or
obtain additional information or assistance by contacting the Trust at
800-754-8757 or writing the Trust at the following address:

Monarch Funds
P.O. Box 446
Portland, Maine 04112

Purchase orders for Universal Shares will be accepted on Fund Business Days
until 3:00 p.m., Pacific time. In order to receive distributions for the day of
investment, orders and payment must be received by the Transfer Agent as
follows:

Order Must be Received by Payment Must be Received BY
------------------------- ---------------------------
11:00 a.m., Pacific time 1:00 p.m., Pacific time

If a purchase order is transmitted to the Transfer Agent after 11:00 a.m.,
Pacific time, or the wire is received after 1:00 p.m., Pacific time, the
investor will not receive a distribution on that day. On days that the New York
Stock Exchange or San Francisco Federal Reserve Bank closes early or the Public
Securities Association recommends that the government securities markets close
early, the Trust may advance the time by which the Transfer Agent must receive
completed wire purchase orders and the cut-off times in the above table.

INITIAL PURCHASE PROCEDURES

BY BANK WIRE. To make an initial investment in a Fund using the federal wire
system for transmittal of money among banks, an investor should first telephone
the Transfer Agent at 800-754-8757 to obtain an account number. The investor
should then wire the investor's money immediately to:

Imperial Bank
ABA# 122201444
For Credit To: Forum Financial Corp.
Account #: 09075-933
Re: [Name of Fund] - Universal Shares
Account #:_________________
Account Name:__________________

The investor should then promptly complete and mail the account application.
Payment in the form of a bank wire is treated as a Federal Funds payment
received at the time the wire is received.

BY MAIL. Investors may send a check made payable to the Trust along with a
completed account application to the Transfer Agent at the address listed above.
Checks are accepted at full value subject to collection.

7
<PAGE>

THROUGH FINANCIAL INSTITUTIONS. Shares may be purchased and redeemed through
certain broker-dealers, banks and other financial institutions ("Participating
Organizations"). Participating Organizations may charge a fee for their services
and may otherwise act as processing agents. Participating Organizations are
responsible for promptly transmitting purchase, redemption and other requests to
the Funds.

Investors who purchase shares in this manner will be subject to the procedures
of their Participating Organization, which may include investment minimums,
cutoff times and other restrictions in addition to, or different from, those
applicable to shareholders who invest in a Fund directly. Investors purchasing
Fund shares in this manner should acquaint themselves with their Participating
Organization's procedures and should read this Prospectus in conjunction with
any materials and information provided by their Participating Organization.
Investors purchasing shares in this manner may or may not be the shareholder of
record and, subject to their Participating Organization's procedures, may have
Fund shares transferred into their name. Certain states permit shares to be
purchased and redeemed only through registered broker-dealers, including Forum.

SUBSEQUENT INVESTMENTS

Subsequent investments in a Fund, which may be made by bank wire, by check or
through Participating Organizations. Shareholders using the wire system for
subsequent investments should first telephone the Transfer Agent at 800-754-8757
to notify it of the wire transfer.

6. REDEMPTIONS OF SHARES

GENERAL INFORMATION

Fund shares may be redeemed without charge at their next determined net asset
value on any Fund Business Day following acceptance by the Transfer Agent of the
redemption order in proper form (and any supporting documentation which the
Transfer Agent may require). There is no minimum period of investment and no
restriction on the frequency of redemptions. Redemption proceeds are paid by
check mailed to the shareholder's record address immediately following any
redemption unless the shareholder has elected wire redemption privileges. The
right of redemption may not be suspended nor the payment dates postponed except
when the New York Stock Exchange is closed (or when trading thereon is
restricted) for any reason other than its customary weekend or holiday closings
or under any emergency or other circumstance as determined by the SEC.

Redemption proceeds from the Portfolios may be made wholly or partially in
portfolio securities if the Adviser determines it to be in the best interests of
the Portfolio. Similarly, redemption proceeds from a Fund may be made wholly or
partially in portfolio securities if it is determined to be in the best
interests of the Fund.

Redemption orders for Universal Shares will be accepted on Fund Business Days
until 3:00 p.m., Pacific time. In order to receive redemption proceeds by wire,
a redemption order must be received by the Transfer Agent by 11:00 a.m., Pacific
time.

For redemption orders received after 11:00 a.m., Pacific time, the Transfer
Agent will wire proceeds the next Fund Business Day. On days that the New York
Stock Exchange or San Francisco Federal Reserve Bank closes early or the Public
Securities Association recommends that the government securities markets close
early, the Trust may advance the time by which the Transfer Agent must receive
completed wire redemption orders.

If a shareholder elects telephone redemption or exchange privileges, as long as
the Trust employs reasonable procedures to insure that telephone orders are
genuine (which include recording certain transactions and the use of immediate
written confirmation by facsimile or otherwise), the Trust, the Transfer Agent
and Forum are not responsible for the authenticity of telephone instructions or
losses, if any, resulting from unauthorized telephone redemption or exchange
requests. Shareholders should verify the accuracy of telephone instructions
immediately upon receipt of confirmation statements.

REDEMPTION PROCEDURES

Shareholders that wish to redeem shares by telephone or to have redemption
proceeds transmitted by bank wire must elect these options by properly
completing the appropriate sections of their account application.

Shareholders may make a redemption in any amount by sending a written request to
the Transfer Agent accompanied by any share certificates that may have been
issued to the shareholder or, for shareholders that have elected telephone
redemption privileges, by calling the Transfer Agent and providing the
shareholder's account number, the exact name in which the shareholder's shares
are registered and a shareholder identification number. During times of drastic
economic or market changes, the telephone redemption privilege may be difficult
to implement.

8
<PAGE>

BANK WIRE REDEMPTION. For redemptions of more than $5,000, a shareholder that
has elected wire redemption privileges may request a Fund to transmit redemption
proceeds by Federal Funds wire to a bank account designated on the shareholder's
account application.

SIGNATURE GUARANTEES. A signature guarantee is required for any written
redemption request (other than an exchange) and for any instruction to change
the shareholder's record name or address, a designated bank account, the
distribution election, or the telephone redemption or other option elected on an
account. In addition, all certificates submitted for redemption (or exchange)
must be endorsed by the shareholder with signature guaranteed. Signature
guarantees may be provided by any eligible institution acceptable to the
Transfer Agent, including a bank, a broker, a dealer, a national securities
exchange, a credit union, or a savings association that is authorized to
guarantee signatures. Share certificates submitted for redemption must be
endorsed by the shareholder with signature guaranteed.

OTHER REDEMPTION MATTERS. Share certificates are issued only to shareholders of
record upon their written request and no certificates are issued for fractional
shares. Shares for which certificates have been issued may not be redeemed or
exchanged by telephone. Due to the cost to the Trust of maintaining smaller
accounts, the Trust reserves the right to redeem, upon not less than 60 days'
written notice, all shares in any Fund account with an aggregate net asset value
of less than $100,000, unless an investment is made to restore the minimum
value.

The Transfer Agent will deem a shareholder's account "lost" if correspondence to
the shareholder's address of record is returned for six months, unless the
Transfer Agent determines the shareholder's new address. When an account is
deemed lost, all distributions on the account will be reinvested in additional
Universal Shares. In addition, the amount of any outstanding (unpaid for six
months or more) checks for distributions that have been returned to the Transfer
Agent will be reinvested and the checks will be canceled.

EXCHANGE PROGRAM

Investors in Universal Shares of a Fund are entitled to exchange their shares
for Universal Shares of another Fund if that Fund's shares are eligible for sale
in the shareholder's state. Exchanges are subject to minimum investment
requirements of the Funds. There is currently no limit on the number of
exchanges a shareholder may make. The Trust reserves the right in the future to
modify, limit or terminate the exchange privilege upon appropriate notice to
shareholders.

Exchanges may be accomplished by written instructions to the Transfer Agent or,
for shareholders that have elected telephone exchange privileges, by calling the
Transfer Agent and providing the shareholder's account number, the exact name in
which the shareholder's shares are registered and the shareholder's social
security or taxpayer identification number. During times of drastic economic or
market changes, the telephone exchange privilege may be difficult to implement.

7. DISTRIBUTIONS AND TAX MATTERS

DISTRIBUTIONS

Distributions of each Fund's net investment income are declared daily and paid
monthly following the close of the last Fund Business Day of the month. Net
capital gain realized by a Fund, if any, will be distributed annually. Fund
shares become entitled to receive distributions on the day the shares are issued
as described under "Purchases of Shares General Information." Shares redeemed
are not entitled to receive distributions declared on or after the day on which
the redemption becomes effective.

Shareholders may choose either to have all distributions reinvested in
additional Fund shares or received in cash or to have distributions of net
capital gain reinvested in additional Fund shares and distributions of net
investment income paid in cash. All distributions are treated in the same manner
for Federal income tax purposes whether received in cash or reinvested in shares
of the Fund.

TAX MATTERS

TAX STATUS OF THE FUNDS. Each Fund intends to continue to qualify to be taxed as
a "regulated investment company" under the Internal Revenue Code of 1986, as
amended. Accordingly, each Fund will not be liable for Federal income taxes on
the net investment income and capital gain distributed to its shareholders.
Because the Funds intend to distribute all of their net investment income and
net capital gain each year, the Funds should also avoid Federal excise taxes.

Distributions paid by each Fund out of its net investment income (including
realized net short-term capital gain) are taxable to the shareholders of the
Fund as ordinary income. Distributions of net long-term capital gain, if any,
realized by a Fund are taxable to shareholders as long-term capital gain,
regardless of the length of time the Fund shares were held by the shareholder at
the time of distribution.

9
<PAGE>

THE PORTFOLIOS. The Portfolios are not required to pay Federal income taxes on
their net investment income and capital gain, as they are treated as
partnerships for Federal income tax purposes. All interest, distributions and
gains and losses of a Portfolio are deemed to be "passed through" to the
respective Fund in proportion to the Fund's holdings of the Portfolio,
regardless of whether the interest, distributions or gains have been distributed
by the Portfolio or losses have been realized by the Portfolio.

GENERAL. Each Fund is required by Federal law to withhold 31% of reportable
payments (which may include income and capital gain distributions) paid to a
non-corporate shareholder unless that shareholder certifies in writing that the
social security or other tax identification number provided is correct and that
the shareholder is not subject to backup withholding.

Reports containing appropriate information with respect to the Federal income
tax status of distributions paid during the year by the Fund will be mailed to
shareholders shortly after the close of each calendar year.

The foregoing is only a summary of some of the Federal tax considerations
generally affecting the Funds and their shareholders. The SAI contains a further
discussion. Because other Federal, state or local tax considerations may apply,
investors are urged to consult their tax advisors.

8. OTHER INFORMATION

FUND PERFORMANCE

Universal Shares' performance may be advertised. All performance information is
based on historical results, is not intended to indicate future performance and,
unless otherwise indicated, is net of all expenses. The Funds may advertise
yield, which shows the rate of income a Fund has earned on its investments as a
percentage of the Fund's share price. To calculate yield, a Fund takes the
interest income it earned from its portfolio of investments for a specified
period (net of expenses), divides it by the average number of shares entitled to
receive distributions, and expresses the result as an annualized percentage rate
based on the Fund's share price at the end of the period. A Fund's compounded
annualized yield assumes the reinvestment of distributions paid by the Fund,
and, therefore will be somewhat higher than the annualized yield for the same
period. Each class' performance will vary. The Funds' advertisements may also
reference ratings and rankings among similar funds by independent evaluators
such as Morningstar, Lipper Analytical Services, Inc. or IBC Financial Data,
Inc. In addition, the performance of the Funds may be compared to recognized
indices of market performance. The comparative material found in a Fund's
advertisements, sales literature, or reports to shareholders may contain
performance rankings. This material is not to be considered representative or
indicative of future performance.

DETERMINATION OF NET ASSET VALUE

The Trust determines the net asset value per share of each Fund as of 1:00 p.m.,
Pacific time, on each Fund Business Day. Net asset value per share is determined
by dividing the value of the Fund's net assets (the value of its interest in the
Portfolio and other assets less its liabilities) by the number of shares
outstanding at the time the determination is made. In order to more easily
maintain a stable net asset value per share, each Portfolio's portfolio
securities are valued at their amortized cost (acquisition cost adjusted for
amortization of premium or accretion of discount) in accordance with Rule 2a-7.
The Portfolios will only value their portfolio securities using this method if
the Core Trust Board believes that it fairly reflects the market-based net asset
value per share. The Portfolios' other assets, if any, are valued at fair value
by or under the direction of the Core Trust Board.

THE TRUST AND ITS SHARES

The Trust is registered with the SEC as an open-end management investment
company and was organized as a business trust under the laws of the State of
Delaware on July 10, 1992. The Board has the authority to issue an unlimited
number of shares of beneficial interest of separate series with no par value per
share and to create classes of shares within each series. Except for the Funds,
no other series of shares are currently authorized.

As of December 26, 1996, there were no outstanding Universal Shares of Treasury
Cash Fund, and no shareholder owned more than 25% of the outstanding Universal
Shares of Government Cash Fund. As of that same date, Imperial Bank of
Inglewood, California owned more than 25% of the outstanding Universal Shares of
Cash Fund. From time to time various shareholders may own a large percentage of
Universal Shares or shares of other classes of a Fund. These shareholders may be
deemed to be controlling persons of a class, a Fund or the Trust, and may be
able to greatly affect (if not determine) the outcome of any shareholder vote.

10
<PAGE>

meetings of shareholders, and it is anticipated that shareholder meetings will
be held only when specifically required by law. Shareholders have available
procedures for requiring the Trustees to call a meeting and for removing
Trustees.

FUND STRUCTURE

OTHER CLASSES OF SHARES. In addition to Universal Shares, each Fund currently
has two other classes of shares authorized, Institutional Shares and Investor
Shares. Institutional Shares are offered solely through banks, trust companies
and certain other financial institutions, and their affiliates and
correspondents, for investment of their funds or funds for which they act in a
fiduciary, agency or custodial capacity. Investor Shares are offered to the
general public and have an investment minimum of $5,000. Institutional Shares
and Investor Shares incur greater expenses than Universal Shares. Except for
certain differences, each share of each class represents an undivided,
proportionate interest in a Fund. Each share of each Fund is entitled to
participate equally in distributions and the proceeds of any liquidation of that
Fund except that, due to the differing expenses borne by the various classes,
the amount of distributions will differ among the classes.

CORE TRUST STRUCTURE. Each Fund invests all of its assets in its corresponding
Portfolio of Core Trust, a business trust organized under the laws of the State
of Delaware in September 1994 and registered under the 1940 Act as an open-end
management investment company. Accordingly, a Portfolio directly acquires its
own securities and its corresponding Fund acquires an indirect interest in those
securities. The assets of each Portfolio belong only to, and the liabilities of
the Portfolio are borne solely by, the Portfolio and no other portfolio of Core
Trust. Upon liquidation of a Portfolio, investors in the Portfolio would be
entitled to share pro rata in the net assets of the Portfolio available for
distribution to investors.

THE PORTFOLIOS. A Fund's investment in a Portfolio is in the form of a
non-transferable beneficial interest. As of the date of this Prospectus, the
Treasury Cash Fund and Government Cash Fund are the only investors that have
invested all of their assets in their respective Portfolios. Besides Cash Fund,
another investment company invests in Cash Portfolio. All investors in a
Portfolio will invest on the same terms and conditions as the Funds and will pay
a proportionate share of the Portfolio's expenses. The Portfolios normally will
not hold meetings of investors except as required by the 1940 Act. Each investor
in a Portfolio will be entitled to vote in proportion to the relative value of
its interest in the Portfolio. On most issues subject to a vote of investors, as
required by the 1940 Act and other applicable law, a Fund will solicit proxies
from shareholders of the Fund and will vote its interest in a Portfolio in
proportion to the votes cast by its shareholders. If there are other investors
in a Portfolio, there can be no assurance that any issue that receives a
majority of the votes cast by a Fund's shareholders will receive a majority of
votes cast by all investors in the Portfolio.

CONSIDERATIONS OF INVESTING IN A PORTFOLIO. A Fund's investment in a Portfolio
may be affected by the actions of other investors in the Portfolio. For example,
if other investors redeemed their interest in the Portfolio, the Portfolio's
remaining investors (including the Fund) might, as a result, experience higher
pro rata operating expenses. A Fund may withdraw its entire investment from a
Portfolio at any time if the Board determines that it is in the best interests
of the Fund and its shareholders to do so. The Fund might withdraw, for example,
if other investors in the Portfolio, by a vote of shareholders, changed the
investment objective or policies of the Portfolio in a manner not acceptable to
the Board or not permissible by the Fund. A withdrawal could result in a
distribution in kind of portfolio securities (as opposed to a cash distribution)
by the Portfolio. That distribution could result in a less diversified portfolio
of investments for the Fund, resulting in increased risk, and could affect
adversely the liquidity of the Fund's portfolio. If the Fund decided to convert
those securities to cash, it would incur transaction costs. If the Fund withdrew
its investment from the Portfolio, the Board would consider what action might be
taken, including the management of the Fund's assets in accordance with its
investment objective and policies by the Adviser or the investment of all of the
Fund's investable assets in another pooled investment entity having
substantially the same investment objective as the Fund. Forum has only two
years of experience in managing funds that utilize its "Core and Gateway(R)"
structure.

ADDITIONAL INFORMATION. Each class of a Fund (and any other investment company
that invests in a Portfolio) may have a different expense ratio and different
sales charges, including distribution fees, and each class' (and investment
company's) performance will be affected by its expenses and sales charges. For
more information on any other class of shares of the Funds or concerning any
other investment companies that invest in a Portfolio, investors may contact
Forum at 800-754-8757. If an investor invests through a financial institution,
the investor may also contact their financial institution to obtain information
about the other classes or any other investment company investing in a
Portfolio.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, THE SAI AND THE
FUNDS' OFFICIAL SALES LITERATURE IN CONNECTION WITH THE OFFERING OF THE FUNDS'
SHARES, AND IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE TRUST. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER IN ANY STATE IN WHICH, OR TO ANY PERSON TO WHOM, SUCH OFFER
MAY NOT LAWFULLY BE MADE.

11
<PAGE>

MONARCH FUNDS
================================================================================

INSTITUTIONAL SHARES

Treasury Cash Fund
Government Cash Fund
Cash Fund
PROSPECTUS

[ ]

- --------------------------------------------------------------------------------
This Prospectus offers Institutional Shares of Treasury Cash Fund, Government
Cash Fund and Cash Fund (each a "Fund" and collectively the "Funds"). Each Fund
is a diversified money market portfolio of Monarch Funds (the "Trust"), an
open-end, management investment company. Each Fund seeks to provide its
shareholders with high current income to the extent consistent with the
preservation of capital and the maintenance of liquidity.

TREASURY CASH FUND invests primarily in obligations of the U.S.
Treasury and in repurchase agreements backed by these obligations.

GOVERNMENT CASH FUND invests primarily in high-quality obligations of
the U.S. Government, its agencies and instrumentalities and in
repurchase agreements backed by these obligations.

CASH FUND invests in a broad spectrum of high-quality money market
instruments.

- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<S> <C> <C>

1. Prospectus Summary............................ 5. Purchases of Shares...........................
2. Financial Highlights.......................... 6. Redemptions of Shares.........................
3. Investment Objective and Policies............. 7. Distributions and Tax Matters.................
4. Management.................................... 8. Other Information.............................

</TABLE>
- --------------------------------------------------------------------------------

THERE CAN BE NO ASSURANCE THAT ANY FUND WILL BE ABLE TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE.

<PAGE>

1. PROSPECTUS SUMMARY

FUND HIGHLIGHTS

This prospectus offers shares of the Institutional class ("Institutional
Shares") of each of the three "money market" Funds of Monarch Funds. The Funds
operate in accordance with the provisions of Rule 2a-7 under the Investment
Company Act of 1940.

SHAREHOLDER SERVICING. The Trust has adopted a Shareholder Service Plan relating
to Institutional Shares under which Forum is compensated for various shareholder
servicing activities. See "Management - Shareholder Servicing."

PURCHASES AND REDEMPTIONS. Institutional Shares may be purchased and redeemed
Monday through Friday, between the hours of 6:00 a.m. and 3:00 p.m., Pacific
time, except on Federal holidays and other days that the Federal Reserve Bank of
San Francisco is closed ("Fund Business Days"). To be eligible to receive that
day's income, purchase orders must be received by the Transfer Agent in good
order no later than 11:00 a.m., Pacific time. Shareholders may elect to have
redemptions of over $5,000 redeemed by bank wire to a designated bank account.
To be able to receive redemption proceeds by wire on the day of the redemption,
redemption orders must be received by the transfer agent in good order no later
than 11:00 a.m., Pacific time. All times may be changed without notice by
management due to market activities. See "Purchases of Shares" and "Redemptions
of Shares."

EXCHANGES. Shareholders may exchange Institutional Shares for Institutional
Shares of the other Funds. See "Redemptions of Shares - Exchange Program."

INVESTMENT CONSIDERATIONS. There can be no assurance that any Fund will be able
to maintain a stable net asset value of $1.00 per share. Although the Funds
invest in money market instruments, all securities, including U.S. Government
Securities involve some level of investment risk. An investment in a Fund is not
insured by the FDIC, or is it insured or guaranteed against loss of principal.

EXPENSES OF INVESTING IN THE FUNDS

The purpose of the following table is to assist investors in understanding the
various expenses that an investor in Institutional Shares will bear directly or
indirectly. There are no transaction expenses associated with purchases,
redemptions or exchanges of Fund shares. For a further description of the
various expenses incurred in the operation of the Funds and the Portfolios, see
"Management." Expenses for each Fund are based on the Funds' fiscal year ended
August 31, 1996.

ANNUAL OPERATING EXPENSES (as a percentage of average net assets) (1)
<TABLE>
<S> <C> <C> <C>
Treasury Government
Cash Fund Cash Fund Cash Fund
--------- --------- ---------

Management Fees (2) (after fee waivers) 0.07% 0.14% 0.13%
Rule 12b-1 Fees None None None
Other Expenses (after expense reimbursements) 0.38% 0.43% 0.44%
----- ----- -----
Total Operating Expenses 0.45% 0.57% 0.57%
</TABLE>

(1) All information includes the Fund's pro rata portion of the expenses of its
corresponding Portfolio. Absent expense reimbursements and fee waivers, the
expenses of Treasury Cash Fund, Government Cash Fund and Cash Fund would be:
Management Fees; 0.14%, 0.14% and 0.14%; Other Expenses; 0.56%, 0.44% and 0.46%;
and Total Operating Expenses; 0.70%, 0.58% and 0.60%.

(2) Includes advisory, management and administration fees.

2
<PAGE>

EXAMPLE

You would pay directly or indirectly the following expenses on a $1,000
investment in Institutional Shares, assuming a 5% annual return and redemption
at the end of each period:
<TABLE>
<S> <C> <C> <C> <C>
One Year Three Years Five Years Ten Years
-------- ----------- ---------- ---------
Treasury Cash Fund $5 $14 $25 $57
Government Cash Fund $6 $18 $32 $71
Cash Fund $6 $18 $32 $71
</TABLE>

2. FINANCIAL HIGHLIGHTS

The following information represents selected data for a single outstanding
Institutional Share of each Fund for the periods indicated. Until August 31,
1995, the Funds invested directly in portfolio securities. Prior to the offering
of Institutional Shares of Government Cash Fund and Cash Fund, those Funds had
commenced operations; selected data for a single outstanding Universal Share of
these Funds for their first year of operations also is shown. This information
has been audited by [ ], independent auditors. The Funds'
financial statements and the independent auditors' report thereon are
incorporated by reference into the SAI and may be obtained without charge upon
request.

Ratios to Average Net Net
Distri- Assets Assets at Ratio to
Beginning butions Ending --------------------- End of Average Net
Net Asset Net From Net Net Asset Net Period Assets
Value Per Investment Investment Value per Investment Total (000's Gross
Share Income Income Share Expense Income Return Omitted) Expenses(a)
----- ------ ------ ----- ------- ------ ------ ------- -----------
TREASURY CASH FUND
INSTITUTIONAL SHARES
Year Ended August 31, 1996 $ 1.00 $ 0.05 $ (0.05) $ 1.00 0.45% 5.01% 5.15% $79,259(c) 0.69%
Year Ended August 31, 1995 1.00 0.05 (0.05) 1.00 0.42% 5.18% 5.28% 28,530 0.86%
Year Ended August 31, 1994 1.00 0.03 (0.03) 1.00 0.42% 3.03% 3.11% 41,194 0.74%
Jul. 12 to Aug. 31, 1993 1.00 ------ ------ 1.00 0.45%(b) 2.65%(b) 2.81%(b) 39,660 1.09%(b)

GOVERNMENT CASH FUND
INSTITUTIONAL SHARES
Year Ended August 31, 1996 1.00 0.05 (0.05) 1.00 0.57% 5.06% 5.18% 256,244(c) 0.57%
Year Ended August 31, 1995 1.00 0.05 (0.05) 1.00 0.54% 5.39% 5.46% 186,620 0.66%
Year Ended August 31, 1994 1.00 0.03 (0.03) 1.00 0.56% 3.45% 3.35% 61,738 0.68%
Jul. 15 to Aug. 31, 1993 1.00 ------ ------ 1.00 0.53%(b) 2.91%(b) 2.89%(b) 31,483 1.04%(b)

UNIVERSAL SHARES
Oct. 29, 1992 to Aug. 31, 1.00 0.03 (0.03) 1.00 0.21%(b) 3.19%(b) 3.23%(b) 158,516 0.52%(b)
1993

CASH FUND
INSTITUTIONAL SHARES
Year Ended August 31, 1996 1.00 0.05 (0.05) 1.00 0.57% 5.10% 5.22% 89,733(c) 0.60%
Year Ended August 31, 1995 1.00 0.05 (0.05) 1.00 0.54% 5.33% 5.23% 73,802 0.69%
Year Ended August 31, 1994 1.00 0.03 (0.03) 1.00 0.54% 3.43% 3.40% 55,771 0.72%
Jul. 15 to Aug. 31, 1993 1.00 ------ ------ 1.00 0.53%(b) 2.94%(b) 2.97%(b) 34,383 1.07%(b)

UNIVERSAL SHARES
Dec. 1, 1992 to Aug. 31, 1.00 0.03 (0.03) 1.00 0.25%(b) 3.29%(b) 3.36%(b) 47,854 0.62%(b)
1993
</TABLE>

(b) Annualized.

3
<PAGE>

3. INVESTMENT OBJECTIVE AND POLICIES

INVESTMENT OBJECTIVE

INVESTMENT POLICIES

TREASURY CASH PORTFOLIO

Treasury Cash Portfolio seeks to maintain its investment objective by investing
substantially all of its assets in Treasury Securities and in repurchase
agreements backed by Treasury Securities.

GOVERNMENT CASH PORTFOLIO

Government Cash Portfolio seeks to attain its investment objective by investing
substantially all of its assets in U.S. Government Securities and in repurchase
agreements backed by U.S. Government Securities. The U.S. Government Securities
in which the Portfolio may invest include Treasury Securities and securities
supported substantially all of its assets or solely by the creditworthiness of
the issuer, such as securities of the Federal National Mortgage Association.
There is no guarantee that the U.S. Government will support securities not
backed by its full faith and credit. Accordingly, although these securities have
historically involved little risk of loss of principal if held to maturity, they
may involve more risk than securities backed by the U.S. Government's full faith
and credit.

CASH PORTFOLIO

4
<PAGE>

ADDITIONAL INVESTMENT POLICIES

5
<PAGE>

purchased by a Portfolio will have an interest rate that is adjusted based on a
single short-term rate or index, such as the Prime Rate.

4. MANAGEMENT

MANAGER AND INVESTMENT ADVISER

As of the date hereof Forum acted as manager and distributor of registered
investment companies with assets of approximately $17 billion. Forum is a
registered broker-dealer and is a member of the National Association of
Securities Dealers, Inc. As of the date of this Prospectus, Forum, the Adviser
and the Trust's transfer agent were each directly controlled by John Y. Keffer,
an officer and Trustee of the Trust and of Core Trust. Forum and the Adviser are
located at Two Portland Square, Portland, Maine 04101.

Subject to the general supervision of the Core Trust Board, the Adviser makes
investment decisions for each Portfolio and monitors the Portfolios'
investments. In addition to the Portfolios, the Adviser currently provides
investment advisory services to five other mutual funds, including one other
money market fund, Treasury Cash Portfolio of Core Trust. Under supervision of
the Adviser, Mr. Anthony R. Fischer, Jr. acts as each Portfolio's portfolio
manager pursuant to a consulting agreement with the Adviser.

SHAREHOLDER SERVICING

TRANSFER AND DIVIDEND DISBURSING AGENT. Forum Financial Corp. (the "Transfer
Agent"), a registered transfer agent, acts as the Trust's transfer agent and
dividend disbursing agent. The Transfer Agent maintains an account for each
shareholder of the Funds (unless such accounts are maintained by sub-transfer
agents or processing agents) and performs other transfer agency and related
functions.

The Transfer Agent is authorized to subcontract any or all of its functions to
one or more qualified sub-transfer agents or processing agents, which may be its
affiliates, who agree to comply with the terms of the Transfer Agent's agreement
with the Trust. The Transfer Agent may pay those agents for their services, but
no such payment will increase the Transfer Agent's compensation from the Trust.
For its services, the Transfer Agent is paid a transfer agent fee at an annual
rate of 0.20% of the average daily net assets of each Fund attributable to
Institutional Shares plus $12,000 per year and certain

6
<PAGE>

account and additional class charges and is reimbursed for certain expenses
incurred on behalf of the Funds. Forum Financial Corp. is also paid a fee for
its portfolio accounting services to each Portfolio.

SHAREHOLDER SERVICE AGENTS. The Trust has adopted a shareholder service plan
("Shareholder Service Plan") which provides that, as compensation for Forum's
service activities with respect to Institutional Shares, the Trust shall pay
Forum a fee at an annual rate of 0.15% of the average daily net assets
attributable to Institutional Shares. Under this plan, Forum is authorized to
enter into shareholder servicing agreements pursuant to which a shareholder
servicing agent, on behalf of its customers, performs certain shareholder
services not otherwise provided by the Transfer Agent. As compensation for its
services, the shareholder servicing agent, which will be a Participating
Organization, is paid a fee by Forum of up to 0.15% of the average daily net
assets of Institutional Shares owned by investors for which the shareholder
service agent maintains a servicing relationship. Certain shareholder servicing
agents may be subtransfer or processing agents.

Among the services provided by shareholder servicing agents are answering
customer inquiries regarding the manner in which purchases, exchanges and
redemptions of shares of the Trust may be effected and other matters pertaining
to the Trust's services; providing necessary personnel and facilities to
establish and maintain shareholder accounts and records; assisting shareholders
in arranging for processing purchase, exchange and redemption transactions;
arranging for the wiring of funds; guaranteeing shareholder signatures in
connection with redemption orders and transfers and changes in
shareholder-designated accounts; integrating periodic statements with other
customer transactions; and providing such other related services as the
shareholder may request.

EXPENSES

5. PURCHASES OF SHARES

GENERAL INFORMATION

All transactions in Fund shares are effected through the Transfer Agent, which
accepts orders for purchases only from shareholders of record and new investors.
The minimum initial investment in Institutional Shares is $500,000. Shareholders
of record will receive from the Trust monthly statements listing all account
activity during the statement period. The Trust reserves the right in the future
to modify, limit or terminate any shareholder privilege upon appropriate notice.

Monarch Funds
P.O. Box 446
Portland, Maine 04112

Purchase orders for Institutional Shares will be accepted on Fund Business Days
until 3:00 p.m., Pacific time. In order to receive distributions for the day of
investment, orders and payment must be received by the Transfer Agent as
follows:

Order Must be Received by Payment Must be Received by
------------------------- ---------------------------
11:00 a.m., Pacific time 1:00 p.m., Pacific time

7
<PAGE>

INITIAL PURCHASE PROCEDURES

Imperial Bank
ABA# 122201444
For Credit To: Forum Financial Corp.
Account #: 09075-933
Re: [Name of Fund] - Institutional Shares
Account #:__________________
Account Name:____________________

The investor should then promptly complete and mail the account application.
Payment in the form of a bank wire is treated as a Federal Funds payment
received at the time the wire is received.

SUBSEQUENT INVESTMENTS

6. REDEMPTIONS OF SHARES

GENERAL INFORMATION

Redemption orders for Institutional Shares will be accepted on Fund Business
Days until 3:00 p.m., Pacific time. In order to receive redemption proceeds by
wire, a redemption order must be received by the Transfer Agent by 11:00 a.m.,
Pacific time.

8
<PAGE>

Securities Association recommends that the government securities markets close
early, the Trust may advance the time by which the Transfer Agent must receive
completed wire redemption orders.

REDEMPTION PROCEDURES

The Transfer Agent will deem a shareholder's account "lost" if correspondence to
the shareholder's address of record is returned for six months, unless the
Transfer Agent determines the shareholder's new address. When an account is
deemed lost, all distributions on the account will be reinvested in additional
Institutional Shares. In addition, the amount of any outstanding (unpaid for six
months or more) checks for distributions that have been returned to the Transfer
Agent will be reinvested and the checks will be canceled.

EXCHANGE PROGRAM

Investors in Institutional Shares of a Fund are entitled to exchange their
shares for Institutional Shares of another Fund if that Fund's shares are
eligible for sale in the shareholder's state. Exchanges are subject to minimum
investment requirements of the Funds. There is currently no limit on the number
of exchanges a shareholder may make. The Trust reserves the right in the future
to modify, limit or terminate the exchange privilege upon appropriate notice to
shareholders.

7. DISTRIBUTIONS AND TAX MATTERS

DISTRIBUTIONS

9
<PAGE>

Information." Shares redeemed are not entitled to receive distributions declared
on or after the day on which the redemption becomes effective.

TAX MATTERS

8. OTHER INFORMATION

FUND PERFORMANCE

Institutional Shares' performance may be advertised. All performance information
is based on historical results, is not intended to indicate future performance
and, unless otherwise indicated, is net of all expenses. The Funds may advertise
yield, which shows the rate of income a Fund has earned on its investments as a
percentage of the Fund's share price. To calculate yield, a Fund takes the
interest income it earned from its portfolio of investments for a specified
period (net of expenses), divides it by the average number of shares entitled to
receive distributions, and expresses the result as an annualized percentage rate
based on the Fund's share price at the end of the period. A Fund's compounded
annualized yield assumes the reinvestment of distributions paid by the Fund,
and, therefore will be somewhat higher than the annualized yield for the same
period. Each class' performance will vary. The Funds' advertisements may also
reference ratings and rankings among similar funds by independent evaluators
such as Morningstar, Lipper Analytical Services, Inc. or IBC Financial Data,
Inc. In addition, the performance of the Funds may be compared to recognized
indices of market performance. The comparative material found in a Fund's
advertisements, sales literature, or reports to shareholders may contain
performance rankings. This material is not to be considered representative or
indicative of future performance.

DETERMINATION OF NET ASSET VALUE

10
<PAGE>

market-based net asset value per share. The Portfolios' other assets, if any,
are valued at fair value by or under the direction of the Core Trust Board.

THE TRUST AND ITS SHARES

As of December 26, 1996, Imperial Trust Company, Los Angeles, California owned
of record for the benefit of its various customers, more than 25% of the total
outstanding Institutional Shares of Treasury Cash Fund and Cash Fund and, as of
that date, may be deemed to have controlled that class. As of that same date, no
shareholder owned more than 25% of the outstanding Institutional Shares of
Government Cash Fund. From time to time various shareholders may own a large
percentage of Institutional Shares or shares of other classes of a Fund.
Accordingly, these shareholders may be able to greatly affect (if not determine)
the outcome of any shareholder vote.

Shares issued by the Trust have no conversion, subscription or preemptive
rights. Voting rights are not cumulative and the shares of each series or class
of the Trust will be voted separately except when an aggregate vote is required
by law. Separate votes are taken by each class of a Fund if a matter affects
just that class. The Trust is not required to hold annual meetings of
shareholders, and it is anticipated that shareholder meetings will be held only
when specifically required by law. Shareholders have available procedures for
requiring the Trustees to call a meeting and for removing Trustees.

FUND STRUCTURE

OTHER CLASSES OF SHARES. In addition to Institutional Shares, each Fund
currently has two other classes of shares authorized, Universal Shares and
Investor Shares. Universal Shares and Investor Shares are offered to the general
public and have investment minimums of $1,000,000 and $5,000, respectively.
Universal Shares incur less expenses and Investor Shares incur greater expenses
than Institutional Shares. Except for certain differences, each share of each
class represents an undivided, proportionate interest in a Fund. Each share of
each Fund is entitled to participate equally in distributions and the proceeds
of any liquidation of that Fund except that, due to the differing expenses borne
by the various classes, the amount of distributions will differ among the
classes.

11
<PAGE>

might be taken, including the management of the Fund's assets in accordance with
its investment objective and policies by the Adviser or the investment of all of
the Fund's investable assets in another pooled investment entity having
substantially the same investment objective as the Fund. Forum has only two
years of experience in managing funds that utilize its "Core and Gateway(R)"
structure.

12
<PAGE>

MONARCH FUNDS
================================================================================

INVESTOR SHARES

Treasury Cash Fund
Government Cash Fund
Cash Fund
PROSPECTUS

[ ]

- --------------------------------------------------------------------------------
This Prospectus offers Investor Shares of Treasury Cash Fund, Government Cash
Fund and Cash Fund (each a "Fund" and collectively the "Funds"). Each Fund is a
diversified money market portfolio of Monarch Funds (the "Trust"), an open-end,
management investment company. Each Fund seeks to provide its shareholders with
high current income to the extent consistent with the preservation of capital
and the maintenance of liquidity.

TREASURY CASH FUND invests primarily in obligations of the U.S.
Treasury and in repurchase agreements backed by these obligations.

GOVERNMENT CASH FUND invests primarily in high-quality obligations of
the U.S. Government, its agencies and instrumentalities and in
repurchase agreements backed by these obligations.

CASH FUND invests in a broad spectrum of high-quality money market
instruments.

- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<S> <C> <C>

1. Prospectus Summary............................ 5. Purchases of Shares...............................
2. Financial Highlights.......................... 6. Redemptions of Shares.............................
3. Investment Objective and Policies............. 7. Distributions and Tax Matters....................
4. Management.................................... 8. Other Information................................

</TABLE>
- --------------------------------------------------------------------------------
THERE CAN BE NO ASSURANCE THAT ANY FUND WILL BE ABLE TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE.

<PAGE>

1. PROSPECTUS SUMMARY

FUND HIGHLIGHTS

This prospectus offers shares of the Investor class ("Investor Shares") of each
of the three "money market" Funds of Monarch Funds. The Funds operate in
accordance with the provisions of Rule 2a-7 under the Investment Company Act of
1940. Treasury Cash Fund, Government Cash Fund and Cash Fund invest all of their
investable assets in Treasury Cash Portfolio, Government Cash Portfolio and Cash
Portfolio (each a "Portfolio" and collectively the "Portfolios"), respectively,
separate series of Core Trust (Delaware) ("Core Trust"), an open-end management
investment company. See "Other Information - Fund Structure."

SHAREHOLDER SERVICING AND DISTRIBUTION. The Trust has adopted a Shareholder
Service Plan and a Plan of Distribution relating to Investor Shares under which
Forum is compensated for various shareholder servicing and distribution related
activities. See "Management - Shareholder Servicing" and "- Distributor."

PURCHASES AND REDEMPTIONS. The minimum initial investment in Investor Shares is
$5,000. The minimum subsequent investment is $100. Investor Shares may be
purchased and redeemed Monday through Friday, between the hours of 6:00 a.m. and
3:00 p.m., Pacific time, except on Federal holidays and other days that the
Federal Reserve Bank of San Francisco is closed ("Fund Business Days"). To be
eligible to receive that days' income, purchase orders must be received by the
Transfer Agent in good order no later than 11:00 a.m., Pacific time.
Shareholders may elect to have redemptions of over $5,000 redeemed by bank wire
to a designated bank account. To be able to receive redemption proceeds by wire
on the day of the redemption, redemption orders must be received by the transfer
agent in good order no later than 11:00 a.m., Pacific time. All times may be
changed without notice by management due to market activities. See "Purchases of
Shares" and "Redemptions of Shares."

EXCHANGES. Shareholders may exchange Investor Shares for Investor Shares of the
other Funds. See "Redemptions of Shares - Exchange Program."

EXPENSES OF INVESTING IN THE FUNDS

The purpose of the following table is to assist investors in understanding the
various expenses that an investor in Investor Shares will bear directly or
indirectly. There are no transaction expenses associated with purchases,
redemptions or exchanges of Fund shares. For a further description of the
various expenses incurred in the operation of the Funds and the Portfolios, see
"Management." Expenses for each Fund are based on the Funds' fiscal year ended
August 31, 1996 except that expenses for Government Cash Fund are estimated for
its fiscal year ending August 31, 1997.

ANNUAL OPERATING EXPENSES (as a percentage of average net assets) (1)
<TABLE>
<S> <C> <C> <C>
Treasury Government
Cash Fund Cash Fund Cash Fund
--------- --------- ---------
Management Fees (2) (after fee waivers) 0.04% 0.13% 0.13%
Rule 12b-1 Fees 0.25% 0.25% 0.25%
Other Expenses (after expense reimbursements) 0.54% 0.45% 0.45%
----- ----- -----
Total Operating Expenses 0.83% 0.83% 0.83%
</TABLE>

2
<PAGE>

Management Fees; 0.14%, 0.14% and 0.14%; Other Expenses; 0.94%, 0.50%
and 0.57%; and Total Operating Expenses, 1.33%, 0.89% and 0.96%.

(2) Includes all advisory, management and administration fees.

EXAMPLE

You would pay directly or indirectly the following expenses on a $1,000
investment in Investor Shares, assuming a 5% annual return and redemption at the
end of each period:
<TABLE>
<S> <C> <C> <C> <C>
One Year Three Years Five Years Ten Years
-------- ----------- ---------- ---------
Treasury Cash Fund $8 $26 $46 $103
Government Cash Fund $8 $26 $46 $103
Cash Fund $8 $26 $46 $103
</TABLE>

2. FINANCIAL HIGHLIGHTS

The following information represents selected data for a single outstanding
Investor Share of Treasury Cash Fund and of Cash Fund; as of the date hereof,
Investor Shares of Government Cash Fund were not offered. Also shown is selected
data for a single outstanding Institutional Share of Treasury Cash Fund and
Universal Share of Government Cash Fund and Cash Fund for the periods indicated.
Those classes were the first offered for by respective Funds and, accordingly,
represent data since each Fund's inception. Until August 31, 1995, the Funds
invested directly in portfolio securities. This information has been audited by
[ ], independent auditors. The Funds' financial statements and
the independent auditors' report thereon are incorporated by reference into the
SAI and may be obtained without charge upon request.

Ratios to Average Net
Distri- Assets Net Assets Ratio to
Beginning butions Ending ----------------------- End of Average Net
Net Asset Net From Net Net Asset Net Period Assets
Value Per Investment Investment Value per Investment Total (000's Gross
Share Income Income Share Expenses Income Return Omitted) Expenses(a)
----- ------ ------ ----- -------- ------ ------ -------- -----------
TREASURY CASH FUND
INSTITUTIONAL SHARES
Year Ended August 31, 1996 $ 1.00 $0.05 $(0.05) $ 1.00 0.45% 5.01% 5.15% $79,259(c) 0.69%
Year Ended August 31, 1995 1.00 0.05 (0.05) 1.00 0.42% 5.18% 5.28% 28,530 0.86%
Year Ended August 31, 1994 1.00 0.03 (0.03) 1.00 0.42% 3.03% 3.11% 41,194 0.74%
Jul. 12 to Aug. 31, 1993 1.00 ------ ------ 1.00 0.45%(b) 2.65%(b) 2.81%(b) 39,660 1.09%(b)

INVESTOR SHARES
Oct. 25, 1995 to Aug. 31, 1.00 0.04 (0.04) 1.00 0.83%(b) 4.50%(b) 4.00% 3,980(c) 1.33%
1996

INVESTOR SHARES
Mar. 21 to Aug. 31, 1996 1.00 0.02 (0.02) 1.00 0.83%(b) 4.50%(b) 2.02% 393(c) 3.53%(b)

CASH FUND
UNIVERSAL SHARES
Year Ended August 31, 1995 1.00 0.06 (0.06) 1.00 0.27% 5.59% 5.75% 26,525 0.56%
Year Ended August 31, 1994 1.00 0.04 (0.04) 1.00 0.27% 3.50% 3.69% 22,105 0.55%
Dec. 1, 1992 to Aug. 31, 1.00 0.03 (0.03) 1.00 0.25%(b) 3.29%(b) 3.36% 47,854 0.62%(b)
1993

INVESTOR SHARES
Year Ended August 31, 1996 1.00 0.05 (0.05) 1.00 0.83% 4.68% 4.95% 32,731(c) 0.96%
Jun. 16 to Aug. 31, 1995 1.00 0.01 (0.01) 1.00 0.84%(b) 5.32%(b) 5.14%(b) 4,665 3.76%(b)
</TABLE>

(b) Annualized.

3
<PAGE>

3. INVESTMENT OBJECTIVE AND POLICIES

INVESTMENT OBJECTIVE

INVESTMENT POLICIES

TREASURY CASH PORTFOLIO

Treasury Cash Portfolio seeks to maintain its investment objective by investing
substantially all of its assets in Treasury Securities and in repurchase
agreements backed by Treasury Securities.

GOVERNMENT CASH PORTFOLIO

CASH PORTFOLIO

4
<PAGE>

which has been drawn by a customer and are usually backed by goods in
international trade. Time deposits are non-negotiable deposits with a banking
institution that earn a specified interest rate over a given period.
Certificates of deposit and fixed time deposits, which are payable at the stated
maturity date and bear a fixed rate of interest, generally may be withdrawn on
demand by the Portfolio but may be subject to early withdrawal penalties which
could reduce the Portfolio's yield.

ADDITIONAL INVESTMENT POLICIES

5
<PAGE>

rates (these prohibited securities are often referred to as "derivative"
securities). All variable and floating rate securities purchased by a Portfolio
will have an interest rate that is adjusted based on a single short-term rate or
index, such as the Prime Rate.

4. MANAGEMENT

MANAGER AND INVESTMENT ADVISER

Subject to the general supervision of the Core Trust Board, the Adviser makes
investment decisions for each Portfolio and monitors the Portfolios'
investments. In addition to the Portfolios, the Adviser currently provides
investment advisory services to five other mutual funds, including one money
fund, Treasury Portfolio of Core Trust. Under supervision of the Adviser, Mr.
Anthony R. Fischer, Jr. acts as each Portfolio's portfolio manager pursuant to a
consulting agreement with the Adviser.

DISTRIBUTOR

Forum acts as the agent of the Trust in connection with the offering of shares
of the Funds. In order to facilitate the distribution of Investor Shares, the
Trust has adopted a plan of distribution (the "Plan") pursuant to Rule 12b-1
under the 1940 Act with respect to each Fund's Investor Shares. Under the Plan,
Forum receives a fee at an annual rate of 0.25% of the average daily net assets
of each Fund attributable to Investor Shares as compensation for Forum's
services as distributor. From this amount, Forum may make payments to various
financial institutions, including broker-dealers, banks and trust companies as
compensation for services or reimbursement of expenses in connection with the
distribution of shares or the provision of various shareholder services. If the
distribution related expenses of Forum exceed its Rule 12b-1 fees for any Fund,
the Fund will not be obligated to pay Forum an additional amount and if Forum's
distribution related expenses are less than its Rule 12b-1 fees, Forum will
realize a profit.

6
<PAGE>

SHAREHOLDER SERVICING

The Transfer Agent is authorized to subcontract any or all of its functions to
one or more qualified sub-transfer agents or processing agents, which may be its
affiliates, who agree to comply with the terms of the Transfer Agent's agreement
with the Trust. The Transfer Agent may pay those agents for their services, but
no such payment will increase the Transfer Agent's compensation from the Trust.
For its services, the Transfer Agent is paid a transfer agent fee at an annual
rate of 0.20% of the average daily net assets of each Fund attributable to
Investor Shares plus $12,000 per year for each Fund and certain account and
additional class charges and is reimbursed for certain expenses incurred on
behalf of the Funds. Forum Financial Corp. is also paid a fee for its portfolio
accounting services to each Portfolio.

SHAREHOLDER SERVICE AGENTS. The Trust has adopted a shareholder service plan
("Shareholder Service Plan") which provides that, as compensation for Forum's
service activities with respect to the Investor Shares, the Trust shall pay
Forum a fee at an annual rate of 0.15% of the average daily net assets
attributable to Investor Shares. Forum is authorized to enter into shareholder
servicing agreements pursuant to which a shareholder servicing agent, on behalf
of its customers, performs certain shareholder services not otherwise provided
by the Transfer Agent. As compensation for its services, the shareholder
servicing agent, which will be a Participating Organization, is paid a fee by
Forum of up to 0.15% of the average daily net assets of Investor Shares owned by
investors for which the shareholder service agent maintains a servicing
relationship. Certain shareholder servicing agents may be subtransfer or
processing agents.

EXPENSES

5. PURCHASES OF SHARES

GENERAL INFORMATION

All transactions in Fund shares are effected through the Transfer Agent, which
accepts orders for purchases only from shareholders of record and new investors.
The minimum initial investment in Investor Shares is $5,000. The minimum
subsequent investment is $100. Shareholders of record will receive from the
Trust monthly statements listing all account activity during the statement
period. The Trust reserves the right in the future to modify, limit or terminate
any shareholder privilege upon appropriate notice.

7
<PAGE>

Investors may obtain the account application necessary to open an account or
obtain additional information or assistance by contacting the Trust at
800-754-8757 or writing Imperial Securities Corporation at the following
address:

Imperial Securities Corporation
9920 South La Cienega Boulevard
14th Floor
Inglewood, California 90301

Purchase orders for Investor Shares will be accepted on Fund Business Days until
3:00 p.m., Pacific time. In order to receive distributions for the day of
investment, orders and payment must be received by the Transfer Agent as
follows:

Order Must be Received by Payment Must be Received by
------------------------- ---------------------------
11:00 a.m., Pacific time 1:00 p.m., Pacific time

INITIAL PURCHASE PROCEDURES

Imperial Bank
ABA# 122201444
For Credit To: Forum Financial Corp.
Account #: 09075-933
Re: [Name of Fund] - Investor Shares
Account #:__________________
Account Name:_____________________

The investor should then promptly complete and mail the account application.
Payment in the form of a bank wire is treated as a Federal Funds payment
received at the time the wire is received.

SUBSEQUENT INVESTMENTS
There is a $100 minimum for subsequent investments in a Fund, which may be made
by bank wire, by check or through Participating Organizations. Shareholders
using the wire system for subsequent investments should first telephone the
Transfer Agent at 800-754-8757 to notify it of the wire transfer.

8
<PAGE>

6. REDEMPTIONS OF SHARES

GENERAL INFORMATION

Redemption orders for Investor Shares will be accepted on Fund Business Days
until 3:00 p.m., Pacific time. In order to receive redemption proceeds by wire,
a redemption order must be received by the Transfer Agent by 11:00 a.m., Pacific
time.

REDEMPTION PROCEDURES

BY CHECK. Shareholders electing check writing privileges will be provided with
redemption drafts ("checks") drawn on the Fund's account which may be made out
in an amount of $500 or more. When a check is presented for payment, the number
of shares required to cover the amount of the check will be redeemed from the
shareholder's account. If the amount of a check is greater than the value of the
shares owned by the shareholder for which certificates have not been issued, the
check will not be honored. If the amount of the check is less than $500, the
check will be honored and shareholders will be charged a $10 fee, which will be
paid by an immediate redemption from the shareholder's account. Shareholders
will be subject to the Trust's rules and regulations governing the check writing
privilege, as amended from time to time. The check writing privilege is not
available for IRA accounts.

9
<PAGE>

OTHER REDEMPTION MATTERS. Share certificates are issued only to shareholders of
record upon their written request and no certificates are issued for fractional
shares. Shares for which certificates have been issued may not be redeemed or
exchanged by telephone. Due to the cost to the Trust of maintaining smaller
accounts, the Trust reserves the right to redeem, upon not less than 60 days'
written notice, all shares in any Fund account with an aggregate net asset value
of less than $5,000, unless an investment is made to restore the minimum value.

The Transfer Agent will deem a shareholder's account "lost" if correspondence to
the shareholder's address of record is returned for six months, unless the
Transfer Agent determines the shareholder's new address. When an account is
deemed lost, all distributions on the account will be reinvested in additional
Investor Shares. In addition, the amount of any outstanding (unpaid for six
months or more) checks for distributions that have been returned to the Transfer
Agent will be reinvested and the checks will be canceled.

EXCHANGE PROGRAM

Investors in Investor Shares of a Fund are entitled to exchange their shares for
Investor Shares of another Fund if that Fund's shares are eligible for sale in
the shareholder's state. Exchanges are subject to minimum investment
requirements of the Funds. There is currently no limit on the number of
exchanges a shareholder may make. The Trust reserves the right in the future to
modify, limit or terminate the exchange privilege upon appropriate notice to
shareholders.

BY MAIL. Exchanges may be accomplished by written instructions to the Transfer
Agent accompanied by any stock certificate that may have been issued to the
shareholder.

BY TELEPHONE. Exchanges may be accomplished by telephone (if the shareholder has
elected telephone exchange privileges) by calling the Transfer Agent and
providing the shareholder's account number, the exact name in which the
shareholder's shares are registered and the shareholder's social security or
taxpayer identification number. During times of drastic economic or market
changes, the telephone exchange privilege may be difficult to implement.

7. DISTRIBUTIONS AND TAX MATTERS

DISTRIBUTIONS

TAX MATTERS

10
<PAGE>

regardless of whether the interest, distributions or gains have been distributed
by the Portfolio or losses have been realized by the Portfolio.

8. OTHER INFORMATION

FUND PERFORMANCE

Investor Shares' performance may be advertised. All performance information is
based on historical results, is not intended to indicate future performance and,
unless otherwise indicated, is net of all expenses. The Funds may advertise
yield, which shows the rate of income a Fund has earned on its investments as a
percentage of the Fund's share price. To calculate yield, a Fund takes the
interest income it earned from its portfolio of investments for a specified
period (net of expenses), divides it by the average number of shares entitled to
receive distributions, and expresses the result as an annualized percentage rate
based on the Fund's share price at the end of the period. A Fund's compounded
annualized yield assumes the reinvestment of distributions paid by the Fund,
and, therefore will be somewhat higher than the annualized yield for the same
period. Each class' performance will vary. The Funds' advertisements may also
reference ratings and rankings among similar funds by independent evaluators
such as Morningstar, Lipper Analytical Services, Inc. or IBC Financial Data,
Inc. In addition, the performance of the Funds may be compared to recognized
indices of market performance. The comparative material found in a Fund's
advertisements, sales literature, or reports to shareholders may contain
performance rankings. This material is not to be considered representative or
indicative of future performance.

DETERMINATION OF NET ASSET VALUE

THE TRUST AND ITS SHARES

As of December 26, 1996, Imperial Bank, of Inglewood, California owned more than
25% of the total outstanding Investor Shares of Treasury Cash Fund and Cash Fund
and, as of that date, may be deemed to have controlled that class. As of that
same date, there were no outstanding Investor Shares of Government Cash Fund.
From time to time various shareholders may own a large percentage of Investor
Shares or shares of other classes of a Fund. Accordingly, these shareholders may
be able to greatly affect (if not determine) the outcome of any shareholder
vote.

11
<PAGE>

FUND STRUCTURE

OTHER CLASSES OF SHARES. In addition to Investor Shares, each Fund may create
and issue shares of other classes of securities. Each Fund currently has two
other classes of shares authorized, Universal Shares and Institutional Shares.
Universal Shares are offered to the general public and have an investment
minimum of $1,000,000. Institutional Shares are offered solely through banks,
trust companies and certain other financial institutions, and their affiliates
and correspondents, for investment of their funds or funds for which they act in
a fiduciary, agency or custodial capacity. Universal Shares and Institutional
Shares incur less expenses than Investor Shares. Except for certain differences,
each share of each class represents an undivided, proportionate interest in a
Fund. Each share of each Fund is entitled to participate equally in
distributions and the proceeds of any liquidation of that Fund except that, due
to the differing expenses borne by the various classes, the amount of
distributions will differ among the classes.

12
<PAGE>

M O N A R C H F U N D S
================================================================================
TREASURY CASH FUND
GOVERNMENT CASH FUND
CASH FUND

STATEMENT OF ADDITIONAL INFORMATION

[ ]

Monarch Funds is a registered open-end management investment company. This
Statement of Additional Information supplements the Prospectuses (dated [ ])
offering shares of each class of Treasury Cash Fund, Government Cash Fund and
Cash Fund, each a portfolio of the Trust, and should be read only in conjunction
with the applicable Prospectus, a copy of which may be obtained without charge
by contacting the Trust at P.O. Box 446, Portland, Maine 04101.

<TABLE>
<S> <C> <C>
TABLE OF CONTENTS
PAGE

1. INVESTMENT POLICIES 40
2. INVESTMENT LIMITATIONS 44
3. INVESTMENTS BY FINANCIAL INSTITUTIONS 46
4. PERFORMANCE DATA AND ADVERTISING 47
5. MANAGEMENT 49
6. DETERMINATION OF NET ASSET VALUE 57
7. PORTFOLIO TRANSACTIONS 58
8. ADDITIONAL PURCHASE AND REDEMPTION INFORMATION 59
9. TAXATION 60
10. OTHER INFORMATION 61
11. FINANCIAL STATEMENTS 62

APPENDIX A - DESCRIPTION OF CERTAIN SECURITIES RATINGS 63
APPENDIX B - PERFORMANCE DATA 65
APPENDIX C- MISCELLANEOUS TABLES 66

</TABLE>

<PAGE>

DEFINITIONS

As used in this Statement of Additional Information, the following terms shall
have the meanings listed:

"Adviser" shall mean Forum Investment Advisors, LLC.

"Board" shall mean the Board of Trustees of the Trust.

"Core Trust" shall mean Core Trust (Delaware).

"Core Trust Board" shall mean the Board of Trustees of Core Trust.

"FFC" shall mean Forum Financial Corp.

"Forum" shall mean Forum Financial Services, Inc.

"Fund" shall mean each of Treasury Cash Fund, Government Cash Fund and
Cash Fund.

"Fund Business Day" shall have the meaning ascribed thereto in the
Prospectuses of the Funds.

"NRSRO" shall mean a nationally recognized statistical rating
organization.

"Portfolio" shall mean each of Treasury Cash Portfolio, Government Cash
Portfolio, Cash Portfolio.

"SAI" shall mean this Statement of Additional Information.

"SEC" shall mean the U.S. Securities and Exchange Commission.

"Trust" shall mean Monarch Funds.

"U.S. Government Securities" shall mean obligations issued or
guaranteed by the U.S. Government, its agencies or instrumentalities.

"1940 Act" shall mean the Investment Company Act of 1940, as amended.

1. INVESTMENT POLICIES

Each Fund currently seeks to achieve its investment objective by investing all
of its investable assets in its corresponding Portfolio of Core Trust.

Each Fund has a fundamental investment policy that allows it to invest all of
its investable assets in its corresponding Portfolio. All other investment
policies of each Fund and its corresponding Portfolio are identical. Therefore,
although this and the following sections discuss the investment policies of the
Portfolios (and the responsibilities of the Core Trust Board), it applies
equally to the Funds (and the Board). Information with respect to periods prior
to September 1, 1995 (for instance, investment advisory fees paid), the date the
Funds invested in the Portfolio, reflects information with respect to the Funds
and the Funds' direct investment in securities.

Following is information pertaining to the investment policies of each
Portfolio, which supplements the investment policy information contained in the
Funds' Prospectuses.

2
<PAGE>

The Portfolios currently are prohibited from purchasing any security issued by
the Federal Home Loan Mortgage Corporation. This does not prohibit the
Portfolios from entering into repurchase agreements collateralized with
securities issued by the Federal Home Loan Mortgage Corporation.

RATINGS AS INVESTMENT CRITERIA

Moody's Investors Service, Inc. ("Moody's"), Standard & Poor's Corporation
("S&P") and other NRSROs are private services that provide ratings of the credit
quality of debt obligations. A description of the higher quality ratings
assigned to debt securities by several NRSROs is included in Appendix A to this
SAI. The Portfolios use these ratings in determining whether to purchase, sell
or hold a security. It should be emphasized, however, that ratings are general
and not absolute standards of quality. Consequently, securities with the same
maturity, interest rate and rating may have different market prices. Subsequent
to its purchase by a Portfolio, an issue of securities may cease to be rated or
its rating may be reduced. The Adviser, and in certain cases the Core Trust
Board, will consider such an event in determining whether the Portfolio should
continue to hold the obligation. Credit ratings attempt to evaluate the safety
of principal and interest payments and do not evaluate the risks of fluctuations
in market value. Also, rating agencies may fail to make timely changes in credit
ratings in response to developments and events, so that an issuer's current
financial condition may be better or worse than the rating indicates.

SMALL BUSINESS ADMINISTRATION SECURITIES

Each Portfolio may purchase securities issued by the Small Business
Administration ("SBA"). SBA securities are variable rate securities that carry
the full faith and credit of the United States Government, and generally have an
interest rate that resets monthly or quarterly based on a spread to the Prime
rate. SBA securities generally have maturities at issue of up to 25 years. No
Portfolio may purchase an SBA Security if, immediately after the purchase, (I)
the Portfolio would have more than 15% of its net assets invested in SBA
securities or (ii) the total unamortized premium or the total unaccreted
discount on SBA Securities held by the Portfolio divided by the sum of the
securities' par amount would exceed 0.25% of the Portfolios' net assets.

MORTGAGE BACKED SECURITIES

The Portfolios may purchase adjustable rate mortgage backed or other asset
backed securities (such as SBA securities) that are U.S. Government Securities
or, in the case of Treasury Cash Portfolio, that are U.S. Treasury Securities.
These securities directly or indirectly represent a participation in, or are
secured by and payable from, adjustable rate mortgage or other loans which may
be secured by real estate or other assets. Unlike traditional debt instruments,
payments on these securities include both interest and a partial payment of
principal. Prepayments of the principal of underlying loans may shorten the
effective maturities of these securities. Some adjustable rate U.S. Government
Securities (or the underlying loans) are subject to caps or floors that limit
the maximum change in interest rate during a specified period or over the life
of the security.

Adjustable rate mortgage backed securities ("MBSs") are securities that have
interest rates that are reset at periodic intervals, usually by reference to
some interest rate index or market interest rate. Government Cash Portfolio and
Cash Portfolio will only invest in adjustable rate MBSs that are U.S. Government
Securities. MBSs represent an interest in a pool of mortgages made by lenders
such as commercial banks, savings associations, mortgage bankers and mortgage
brokers and may be issued by governmental or government-related entities or by
non-governmental entities such as commercial banks, savings associations,
mortgage bankers and other secondary market issuers.

Interests in pools of MBSs differ from other forms of debt securities which
normally provide for periodic payment of interest in fixed amounts with
principal payments at maturity or specified call dates. In contrast, MBSs
provide periodic payments which consist of interest and, in most cases,
principal. In effect, these payments are a "pass-through" of the periodic
payments and optional prepayments made by the individual borrowers on their
mortgage loans, net of any fees paid to the issuer or guarantor of such
securities. Additional payments to holders of MBSs are caused by prepayments
resulting from the sale of the underlying property or the refinancing or
foreclosure of the underlying mortgage loans. Such prepayments may significantly
shorten the effective maturities of MBSs, and occur more often during periods of
declining interest rates.

3
<PAGE>

Although the rate adjustment feature of MBSs may act as a buffer to reduce sharp
changes in the value of MBSs, these securities are still subject to changes in
value based on changes in market interest rates or changes in the issuer's
creditworthiness. Because the interest rate is reset only periodically, changes
in the interest rate on MBSs may lag behind changes prevailing market interest
rates. Also, some MBSs (or the underlying mortgages) are subject to caps or
floors that limit the maximum change in interest rate during a specified period
or over the life of the security.

During the periods of declining interest rates, income to the Portfolios derived
from mortgages which are not prepared will decrease as the coupon rate resets
along with the decline in interest rates in contrast to the income on fixed-rate
mortgages, which will remain constant. At times, some of the MBSs in which the
Portfolios will invest will have higher-than-market interest rates, and will
therefore be purchased at a premium above their par value. Unscheduled
prepayments, which are made at par, will cause the Portfolios to suffer a loss
equal to the unamortized premium, if any.

During periods of rising interest rates, changes in the coupon rates of the
mortgages underlying the Portfolios' investments may lag behind changes in
market interest rates. This may result in a slightly lower value until the
coupons reset to market rates. Many MBSs in the Portfolios' portfolios will have
"caps" that limit the maximum amount by which the interest rate paid by the
borrower may change at each reset date or over the life of the loan and
fluctuation in interest rates above these levels could cause these securities to
"cap out" and to behave more like fixed-rate debt securities.

The Portfolios may purchase collateralized mortgage obligations ("CMOs"), which
are collateralized by MBSs or by pools of conventional mortgages. (See
"Investment by Shareholders that are Credit Unions - Government Cash Portfolio
and Treasury Cash Portfolio".) CMOs are typically structured with a number of
classes or series that have different maturities and are generally retired in
sequence. Each class of bonds receives periodic interest payments according to
the coupon rate on the bonds. However, all monthly principal payments and any
prepayments from the collateral pool are paid first to the "Class I"
bondholders. The principal payments are such that the Class 1 bonds will be
completely repaid no later than, for example, five years after the offering
date. Thereafter, all payments of principal are allocated to the next most
senior class of bonds until that class of bonds has been fully repaid. Although
full payoff of each class of bonds is contractually required by a certain date,
any or all classes of bonds may be paid off sooner than expected because of an
acceleration in pre-payments of the obligations comprising the collateral pool.

Since the inception of the mortgage-related pass-through security in 1970, the
market for these securities has expanded considerably. The size of the primary
issuance market and active participation in the secondary market by securities
dealers and many types of investors make government and government-related
pass-through pools highly liquid.

Government or private entities may create new types of MBSs in response to
changes in the market or changes in government regulation of such securities. As
new types of these securities are developed and offered to investors, the
Adviser may, consistent with the investment objective and policies of a
Portfolio, consider making investments in such new types of securities.

WHEN-ISSUED SECURITIES AND DELAYED DELIVERY SECURITIES

Each Portfolio may purchase securities on an when-issued or delayed delivery
basis. In those cases, the purchase price and the interest rate payable on the
securities are fixed on the transaction date and delivery and payment may take
place a month or more after the date of the transaction. At the time, a
Portfolio makes the commitment to purchase securities on a when-issued or
delayed delivery basis, the Portfolio will record the transaction as a purchase
and thereafter reflect the value each day of such securities in determining its
net asset value. If a Portfolio chooses to dispose of the right to acquire a
when-issued security prior to its acquisition, it could, as with the disposition
of any other portfolio obligation, incur a gain or loss due to market
fluctuation. Failure of an issuer to deliver the security may result in the
Portfolio incurring a loss or missing an opportunity to make an alternative

4
<PAGE>

investment. When a Portfolio agrees to purchase a security on a when-issued or
delayed delivery basis, its custodian will set aside and maintain in a
segregated account cash, U.S. Government Securities or other liquid, high-grade
debt securities with a market value at all times at least equal to the amount of
its commitment.

ILLIQUID SECURITIES

Each Portfolio may invest up to 10% of its net assets in illiquid securities.
The term "illiquid securities" for this purchase means repurchase agreements not
entitling the holder to payment of principal within seven days and securities
that are illiquid by virtue of legal or contractual restrictions on resale or
the absence of a readily available market.

The Core Trust Board has ultimate responsibility for determining whether
specific securities are liquid or illiquid. The Core Trust Board has delegated
the function of making day-to-day determination of liquidity to the Adviser and,
with respect to certain types of restricted securities which may be deemed to be
illiquid, has adopted guidelines to be followed by the Adviser. The Adviser
takes into account a number of factors in reaching liquidity decisions,
including but not limited to (1) the frequency of trades and quotations of the
security; (2) the number of dealers willing to purchase or sell the security and
the number of other potential buyers; (3) the willingness of dealers to
undertake to make a market in the security; (4) the nature of the marketplace
trades, including the time needed to dispose of the security, the method of
soliciting offers and the mechanics of the transfer; (5) whether the security is
registered; and (6) if the security is not traded in the United States, whether
it can be freely traded in a liquid foreign securities market. The Adviser
monitors the liquidity of the securities in each Portfolio's portfolio and
reports periodically to the Core Trust Board.

Certificates of deposit and fixed time deposits that carry an early withdrawal
penalty or mature in greater than seven days are treated by the Portfolio as
illiquid securities if there is no readily available market for the instrument.

REPURCHASE AGREEMENTS AND SECURITIES LOANS

In connection with entering into repurchase agreements and securities loans, the
Portfolios require continual maintenance by the Trust's custodian of the market
value of the underlying collateral in amounts equal to, or in excess of, the
repurchase price plus the transaction costs (including loss of interest) that
the Portfolios could expect repurchase obligation, a Portfolio might suffer a
loss to the extent that the proceeds from the sale of the collateral were less
than the repurchase price. In the event of a counterparty's bankruptcy, a
Portfolio might be delayed in, or prevented from, selling the collateral for the
Portfolio's benefit. The Adviser monitors the creditworthiness of its repurchase
agreement counterparties and securities borrowers under the Core Trust Board's
general supervision and pursuant to specific Core Trust Board adopted
procedures.

VARIABLE AND FLOATING RATE SECURITIES

The yield of variable and floating rate securities varies in relation to changes
in specific money market rates, such as the Prime rate. A "variable" interest
rate adjusts at predetermined intervals (for example, daily, weekly or monthly),
while a "floating" interest rate adjusts whenever a specified benchmark rate
(such as the bank prime lending rate) changes. These changes are reflected in
adjustments to the yields of the variable and floating rate securities, and
different securities may have different adjustment rates. Accordingly, as
interest rates increase or decrease, the capital appreciation or depreciation
may be less on these obligations than for fixed rates obligations. To the extent
that the Portfolios invest in long-term variable or floating rate securities,
the Adviser believes that the Portfolios may be able to take advantage of the
higher yield that is usually paid on long-term securities.

Cash Portfolio also may purchase variable and floating rate master notes of
corporations, which are unsecured obligations redeemable upon notice that permit
investment of fluctuating amounts at varying rates of interest pursuant to
direct arrangement with the issuer of the instrument. These obligations include
master demand notes that permit investment of fluctuating amounts at varying
rates of interest pursuant to direct arrangement with the issuer of the
instrument. The issuer of these obligations often has the right, after a given
period, to prepay their outstanding principal amount of the obligations upon a
specified number of days' notice. These obligations

5
<PAGE>

generally are not traded, nor generally is there an established secondary market
for these obligations. To the extent a demand note does not have a seven day or
shorter demand feature and there is no readily available market for the
obligation, it is treated as an illiquid security.

No Portfolio may purchase a variable or floating rate security whose interest
rate is adjusted based on a long-term interest rate or index, on two interest
rates or indexes, on an interest rate or index that materially lags short-term
market rates. All variable and floating rate securities purchased by the
Portfolio have an interest rate that is adjusted based on a single short-term
rate or index, such as the Prime rate.

INVESTMENT COMPANY SECURITIES

In connection with managing their cash positions, the Portfolios may invest in
the securities of other investment companies that are money market funds within
the limits proscribed by the 1940 Act. Under normal circumstances, each
Portfolio only intends to invest in funds when it has excess cash and the
Adviser believes that the investment is in the best interest of the Portfolio.
In addition to a Portfolio's expenses (including the various fees), as a
shareholder in another investment company, a Portfolio would bear its pro rata
portion of the other investment company's expenses (including fees).

ZERO-COUPON SECURITIES

All zero-coupon securities in which the Portfolio invests will have a maturity
of less than 13 months.

2. INVESTMENT LIMITATIONS

The Portfolios have adopted the following fundamental investment limitations
that cannot be changed without the affirmative vote of the lesser of (i) more
than 50% of the outstanding interests of the Portfolio or (ii) 67% of the
interests of the Portfolio present or represented at an interestholders meeting
at which the holders of more than 50% of the outstanding interests of the
Portfolio are present or represented. Each Portfolio may not:

(1) With respect to 75% of its assets, purchase a security other than a
U.S. Government Security if, as a result, more than 5% of the
Portfolio's total assets would be invested in the securities of a
single issuer.

(2) Purchase securities if, immediately after the purchase, more than
25% of the value of the Portfolio's total assets would be invested in
the securities of issuers having their principal business activities in
the same industry; provided, however, that there is no limit on
investments in U.S. Government Securities.

(3) Underwrite securities of other issuers, except to the extent that
the Portfolio may be considered to be acting as an underwriter in
connection with the disposition of portfolio securities.

(4) Purchase or sell real estate or any interest therein, except that
the Portfolio may invest in debt obligations secured by real estate or
interests therein or issued by companies that invest in real estate or
interests therein.

(5) Purchase or sell physical commodities or contracts relating to
physical commodities, provided that currencies and currency-related
contracts will not be deemed to be physical commodities.

(6) Borrow money, except for temporary or emergency purposes (including
the meeting of redemption requests) and except for entering into
reverse repurchase agreements, provided that borrowings do not exceed
33 1/3% of the value of the Portfolio's total assets.

6
<PAGE>

(7) Issue senior securities except as appropriate to evidence
indebtedness that the Portfolio is permitted to incur, and provided
that the Portfolio may issue shares of additional series or classes
that the Trustees may establish.

(8) Make loans except for loans of portfolio securities, through the
use of repurchase agreements, and through the purchase of debt
securities that are otherwise permitted investments.

(9) With respect to Government Cash Portfolio, purchase or hold any
security that (i) a Federally chartered savings association may not
invest in, sell, redeem, hold or otherwise deal pursuant to law or
regulation, without limit as to percentage of the association's assets
and (ii) pursuant to 12 C.F.R. Section 566.1 would cause shares of the
Portfolio not to be deemed to be short term liquid assets when owned by
Federally chartered savings associations.

The Portfolios have adopted the following nonfundamental investment limitations
that may be changed by the Core Trust Board without shareholder approval. Each
Portfolio may not:

(a) With respect to 100% of its assets, purchase a security other than
a U.S. Government Security if, as a result, more than 5% of the
Portfolio's total assets would be invested in the securities of a
single issuer, unless the investment is permitted by Rule 2a-7 under
the 1940 Act.

(b) Purchase securities for investment while any borrowing equaling 5%
or more of the Portfolio's total assets is outstanding; and if at any
time the Portfolio's borrowings exceed the Portfolio's investment
limitations due to a decline in net assets, such borrowings will be
promptly (within three days) reduced to the extent necessary to comply
with the limitations. Borrowing for purposes other than meeting
redemption requests will not exceed 5% of the value of the Portfolio's
total assets.

(c) Purchase securities that have voting rights, except the Portfolio
may invest in securities of other investment companies to the extent
permitted by the 1940 Act.

(d) Purchase securities on margin, or make short sales of securities,
except for the use of short-term credit necessary for the clearance of
purchases and sales of portfolio securities.

(e) Invest in securities (other than fully-collateralized debt
obligations) issued by companies that have conducted continuous
operations for less than three years, including the operations of
predecessors (unless guaranteed as to principal and interest by an
issuer in whose securities the Portfolio could invest), if as a result,
more than 5% of the value of the Portfolio's total assets would be so
invested.

(f) Invest in or hold securities of any issuer other than the Portfolio
if, to the Portfolio's knowledge, those Trustees and officers of the
Trust or the Portfolio's investment adviser, individually owning
beneficially more than 1/2 of 1% of the securities of the issuer, in
the aggregate own more than 5% of the issuer's securities.

(g) Invest in oil, gas or other mineral exploration or development
programs, or leases, or in real estate limited partnerships; provided
that the Portfolio may invest in securities issued by companies engaged
in such activities.

(h) Acquire securities or invest in repurchase agreements with respect
to any securities if, as a result, more than 10% of the Portfolio's net
assets (taken at current value) would be invested in repurchase
agreements not entitling the holder to payment of principal within
seven days and in securities that are illiquid by virtue of legal or
contractual restrictions on resale or the absence of a readily
available market.

Except as required by the 1940 Act, if a percentage restriction on investment or
utilization of assets is adhered to at the time an investment is made, a later
change in percentage resulting from a change in the market values of a
Portfolio's assets, the change in status of a security or purchases and
redemptions of shares will not be considered a

7
<PAGE>

violation of the limitation. For purposes of limitation (2): (i) loan
participations are considered to be issued by both the issuing bank and the
underlying corporate borrower; (ii) utility companies are divided according to
their services (for example, gas, gas transmission, electronic and telephone
will each be considered a separate industry); and (iii) financial service
companies will be classified according to the end users of their services, for
example, automobile finance, bank finance and diversified finance will each be
considered a separate industry.

Each Fund has adopted the same fundamental and nonfundamental investment
limitations. The Fund's fundamental limitations cannot be changed without the
affirmative vote of the lesser of (i) more than 50% of the outstanding shares of
the Fund or (ii) 67% of the shares of the Fund present or represented at a
shareholders meeting at which the holders of more than 50% of the outstanding
shares of the Fund are present or represented. In addition, the Funds have
adopted a fundamental policy which provides that, notwithstanding any other
investment policy or restriction (whether fundamental or not), each Fund may
invest all of its assets in the securities of a single pooled investment fund
having substantially the same investment objectives, policies and restrictions
as the Fund or Portfolio, as applicable.

3. INVESTMENTS BY FINANCIAL INSTITUTIONS

INVESTMENT BY SHAREHOLDERS THAT ARE BANKS - GOVERNMENT CASH PORTFOLIO

Government Cash Portfolio invests only in instruments which, if held directly by
a bank or bank holding company organized under the laws of the United States or
any state thereof, would be assigned to a risk-weight category of no more than
20% under the current risk based capital guidelines adopted by the Federal bank
regulators (the "Guidelines"). In the event that the Guidelines are revised, the
Portfolio's portfolio will be modified accordingly, including by disposing of
portfolio securities or other instruments that no longer qualify under the
Guidelines. In addition, the Portfolio does not intend to hold in its portfolio
any securities or instruments that would be subject to restriction as to amount
held by a National bank under Title 12, Section 24 (Seventh) of the United
States Code. If the Portfolio's portfolio includes any instruments that would be
subject to a restriction as to amount held by a National bank, investment in the
Portfolio may be limited.

The Guidelines provide that shares of an investment fund are generally assigned
to the risk-weight category applicable to the highest risk-weighted security or
instrument that the fund is permitted to hold. Accordingly, Portfolio shares
should quality for a 20% risk weighting under the Guidelines. The Guidelines
also provide that, in the case of an investment fund whose shares should qualify
for a risk weighting below 100% due to limitations on the assets which it is
permitted to hold, bank examiners may review the treatment of the shares to
ensure that they have been assigned an appropriate risk-weight. In this
connection, the Guidelines provide that, regardless of the composition of an
investment fund's assets, shares of a fund may be assigned to the 100%
risk-weight category if it is determined that the fund engages in activities
that appear to be speculative in nature or has any other characteristics that
are inconsistent with a lower risk weighting. The Adviser has no reason to
believe that such a determination would be made with respect to the Portfolio.
Their are various subjective criteria for making this determination and,
therefore, it is not possible to provide any assurance as to how Portfolio
shares will be evaluated by bank examiners.

Before acquiring Fund shares, prospective investors that are banks or bank
holding companies, particularly those that are organized under the laws of any
country other than the United States or of any state, territory or other
political subdivision of the United States, and prospective investors that are
U.S. branches and agencies of foreign banks or Edge Corporations, should consult
all applicable laws, regulations and policies, as well as appropriate regulatory
bodies, to confirm that an investment in Fund shares is permissible and in
compliance with any applicable investment or other limits.

Fund shares held by National banks are generally required to be revalued
periodically and reported at the lower of cost or market value. Such shares may
also be subject to special regulatory reporting, accounting and tax treatment.
In addition, a bank may be required to obtain specific approval from its board
of directors before acquiring Fund

8
<PAGE>

shares, and thereafter may be required to review its investment in a Fund for
the purpose of verifying compliance with applicable Federal banking laws,
regulations and policies.

National banks generally must review their holdings of shares of a Fund at least
quarterly to ensure compliance with established bank policies and legal
requirements. Upon request, the Portfolios will make available to the Funds'
investors information relating to the size and composition of their portfolio
for the purpose of providing Fund shareholders with this information.

INVESTMENT BY SHAREHOLDERS THAT ARE CREDIT UNIONS - GOVERNMENT CASH PORTFOLIO
AND TREASURY CASH PORTFOLIO

Government Cash Portfolio and Treasury Cash Portfolio limit their investments to
investments that are legally permissible for Federally chartered credit unions
under applicable provisions of the Federal Credit Union Act (including 12 U.S.C.
Section 1757(7), (8) and (15)) and the applicable rules and regulations of the
National Credit Union Administration (including 12 C.F.R. Part 703, Investment
and Deposit Activities), as such statutes and rules and regulations may be
amended. The Portfolios limit their investments to U.S. Government Securities
(including Treasury STRIPS) and repurchase agreements fully collateralized by
U.S. Government Securities. Certain U.S. Government Securities owned by
Government Cash Portfolio may be mortgage or asset backed , but, except to
reduce interest rate risk, no such security will be (i) a stripped mortgage
backed security (SMBS"), (ii) a collateralized mortgaged obligation ("CMO") or
real estate mortgage investment conduit ("REMIC") that meets any of the tests
outlined in 12 C.F.R. Section 703.5(g) or (iii) a residual interest in a CMO or
REMIC. In order to reduce interest rate risk Government Cash Portfolio may
purchase a SMBS, CMO, REMIC or residual interest in a CMO or REMIC but only in
accordance with 12 C.F.R. Section 703.5(i). Government Cash Portfolio has no
current intention to make any such investment. Each Portfolio also may invest in
reverse repurchase agreements in accordance with 12 C.F.R 703.4(e) to the extent
otherwise permitted hereunder and in the Prospectus.

INVESTMENTS BY SHAREHOLDERS THAT ARE SAVINGS ASSOCIATIONS - GOVERNMENT CASH
PORTFOLIO AND TREASURY CASH PORTFOLIO

Government Cash Portfolio limits its investments to investments that are legally
permissible for Federally chartered savings associations without limit as to
percentage under applicable provisions of the Home Owners' Loan Act (including
12 U.S.C. Section 1464) and the applicable rules and regulations of the Office
of Thrift Supervision, as such statutes and rules and regulations may be
amended. In addition, the Portfolio limits its investments to investments that
are permissible for an open-end investment company to hold and would permit
shares of the investment company to qualify as liquid assets under 12 C.F.R.
Section 566.1(g) and as short-term liquid assets under 12 C.F.R. Section
566.1(h). These policies may be amended only by approval of the Portfolio's and
Fund's shareholders, as applicable.

4. PERFORMANCE DATA AND ADVERTISING

YIELD INFORMATION

Each Fund may provide current annualized and effective annualized yield
quotations for each class based on its daily distributions. These quotations may
from time to time be used in advertisements, shareholder reports or other
communications to shareholders. All performance information supplied by a Fund
is historical and is not intended to indicate future returns.

In performance advertising, the Funds may compare any of their performance
information with data published by independent evaluators such as Morningstar,
Lipper Analytical Services, Inc., IBC Financial Data, Inc. or CDA/Wiesenberger
or other companies which track the investment performance of investment
companies ("Fund Tracking Companies"). The Funds may also compare any of their
performance information with the performance of recognized stock, bond and other
indexes. The Funds may also refer in such materials to mutual fund

9
<PAGE>

performance rankings and other data published by Fund Tracking Companies.
Performance advertising may also refer to discussion of a Fund and comparative
mutual fund data and ratings reported in independent periodicals, such as
newspapers and financial magazines.

Any current yield quotation of a class of a Fund which is used in such a manner
as to be subject to the provisions of Rule 482(d) under the Securities Act of
1933, as amended, shall consist of an annualized historical yield, carried at
least to the nearest hundredth of one percent, based on a specific
seven-calendar-day period and shall be calculated by dividing the net change
during the seven-day period in the value of an account having a balance of one
share at the beginning of the period by the value of the account at the
beginning of the period, and multiplying the quotient by 365/7. For this
purpose, the net change in account value would reflect the value of additional
shares purchased with distributions declared on the original share and
distributions declared on both the original share and any such additional
shares, but would not reflect any realized gains or losses from the sale of
securities or any unrealized appreciation or depreciation on portfolio
securities. In addition, any effective annualized yield quotation used by a Fund
shall be calculated by compounding the current yield quotation for such period
by adding 1 to the product, raising the sum to a power equal to 365/7, and
subtracting 1 from the result.

Although published yield information is useful to investors in reviewing a
class' performance, investors should be aware that each Fund's yield fluctuates
from day to day and that the class' yield for any given period is not an
indication or representation by the Fund of future yields or rates of return on
the Fund's shares. Also, Participating Organizations (as that term is used in
the Prospectus) may charge their customers direct fees in connection with an
investment in a Fund, which will have the effect of reducing the class' net
yield to those shareholders. The yields of a class are not fixed or guaranteed,
and an investment in the Fund is not insured or guaranteed. Accordingly, yield
information may not necessarily be used to compare shares of the Fund with
investment alternatives which, like money market instruments or bank accounts,
may provide a fixed rate of interest. Also, it may not be appropriate directly
to compare a Fund's yield information to similar information of investment
alternatives which are insured or guaranteed.

Income calculated for the purpose of determining a class' yield differs from
income as determined for other accounting purposes. Because of the different
accounting methods used, and because of the compounding assumed in yield
calculations, the yield quoted for a class may differ from the rate of
distribution the class paid over the same period or the rate of income reported
in the Fund's financial statements.

For a listing of certain performance data as of August 31, 1996, see Appendix B.

OTHER PERFORMANCE AND SALES LITERATURE MATTERS

Total returns quoted in sales literature reflect all aspects of a Fund's return,
including the effect of reinvesting capital gain distributions. Average annual
returns generally are calculated by determining the growth or decline in value
of a hypothetical historical investment in a Fund over a stated period, and then
calculating the annually compounded percentage rate that would have produced the
same result if the rate of growth or decline in value had been constant over the
period. While average annual returns are a convenient means of comparing
investment alternatives, investors should realize that the performance is not
constant over time but changes from year to year, and that average annual
returns represent averaged figures as opposed to the actual year-to-year
performance of the Funds.

Average annual total return is calculated by finding the average annual
compounded rates of return of a hypothetical investment, over such periods
according to the following formula:

P(1+T)n = ERV

Where:
P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years

10
<PAGE>

ERV = ending redeemable value: ERV is the value, at the end of
the applicable period, of a hypothetical $1,000 payment
made at the beginning of the applicable period.

OTHER ADVERTISING MATTERS

The Funds may advertise other forms of performance. For example, average annual
and cumulative total returns may be quoted as a percentage or as a dollar
amount, and may be calculated for a single investment, a series of investments,
and/or a series of redemptions over any time period. Total returns may be broken
down into their components of income and capital (including capital gains and
changes in share price) in order to illustrate the relationship of se factors
and their contributions to total return. Any performance information may be
presented numerically or in a table, graph or similar illustration.

A Fund may also include various information in their advertisements. Information
included in the Fund's advertisements may include, but is not limited to (i)
portfolio holdings and portfolio allocation as of certain dates, such as
portfolio diversification by instrument type, by instrument or by maturity, (ii)
descriptions of the portfolio managers of the Funds or the Portfolios and the
portfolio management staff of the Adviser or Forum Advisors or summaries of the
views of the portfolio managers with respect to the financial markets, (iii) the
results of a hypothetical investment in a Fund over a given number of years,
including the amount that the investment would be at the end of the period, (iv)
the effects of earning Federally and, if applicable, state tax-exempt income
from the Fund or investing in a tax-deferred account, such as an individual
retirement account and (v) the net asset value, net assets or number of
shareholders of a Fund as of one or more dates.

In connection with its advertisements a Fund may provide "shareholders letters"
which serve to provide shareholders or investors an introduction into the
Fund's, the Portfolio's, the Trust's, Core Trust's or any of the Trust's of Core
Trust's service provider's policies or business practices.

5. MANAGEMENT

TRUSTEES AND OFFICERS OF THE TRUST

The Trustees and Officers of the Trust and their principal occupation during the
past five years are set forth below. Each Trustee who is an "interested person"
(as defined by the 1940 Act) of the Trust is indicated by an asterisk.

Rudolph I. Estrada, Trustee (age 48)

President and Chief Executive Officer of The Summit Group, a banking and
business consulting company, since 1987. Mr. Estrada was also a Presidential
appointee to the White House Commission on Small Business in 1993. He is also
Professor (Adjunct) of Finance and Management and Director of the Small Business
Institute at California State University; Chairman, Los Angeles County Office of
Education Personnel Commission; and Director, Foothill Thrift & Loan, Augura,
California. His address is 625 Fair Oaks Avenue, South Pasadena, California
91030.

Maurice J. DeWald, Trustee (age 56)

Chief Executive Officer and Chairman, Verity Financial Group, Inc. (a financial
advisory firm) since May 1991. Prior thereto, Mr. DeWald was managing partner of
KPMG Peat Marwick LLP (an international accounting firm). Mr. DeWald also serves
as a director of National Medical Enterprises and Dai-Ichi Kangyo Bank of
California. His address is 19200 Von Karman Avenue, Suite 400, Irvine,
California 92715.

11
<PAGE>

Robert F. Franko, Trustee (age 49)

Executive Vice President and Chief Financial Officer of Imperial Bank and
Imperial Bancorp. since March 1995. Mr. Franko also serves as a Director of
Imperial Trust Company and holds various positions with other Imperial Bancorp.
subsidiaries. Prior thereto, Mr. Franko serves in various capacities with the
Springfield and Morningside Groups, including President and Chief Executive
Officer of Springfield Bank & Trust Limited, Gibraltar and Managing Director of
Springfield Securities Limited. His address is 9920 South LaCienega Boulevard,
Inglewood, California 90301.

John Y. Keffer,* Trustee, Chairman and President (age 54)

President and Director, Forum Financial Services, Inc., (registered
broker-dealer), Forum Financial Corp. (registered transfer agent) and Forum
Advisors, Inc. (registered investment adviser). Mr. Keffer is also a director
and/or officer of various registered investment companies for which Forum
Financial Services, Inc. serves as manager, administrator and/or distributor.
His address is Two Portland Square, Portland, Maine 04101.

Jack J. Singer, Trustee (age 52)

Senior Vice President, Imperial Bank since November 1987. Prior thereto, Mr.
Singer was Vice President of First Interstate Bank Ltd. His address is 9920
South LaCienega Boulevard, Inglewood, California 90301.

David I. Goldstein, Vice President and Secretary (age 35)

Counsel, Forum Financial Services, Inc., with which he has been associated since
1991. Prior thereto, Mr. Goldstein was associated with the law firm of
Kirkpatrick & Lockhart LLP. Mr. Goldstein also serves as an officer of various
registered investment companies for which Forum Financial Services, Inc. serves
as manager, administrator and/or distributor. His address is Two Portland
Square, Portland, Maine 04101.

Richard C. Butt, Treasurer (age 40)

Director of Sales, Forum Financial Group, with which he has been associated
since 1996. Prior thereto, from December 1994 to April 1996, Mr. Butt was a
Director of the Financial Services Consulting Practice, KPMG Peat Marwick LLP.
From November 1993 to August 1994, Mr. Butt was President of 440 Financial
Distributors, Inc. a mutual fund administrator and distributor, and prior
thereto was Senior Vice President of 440 Financial Group, Inc. Mr. Butt is also
an officer of various registered investment companies for which Forum Financial
Services, Inc. serves as manager, administrator and/or distributor. His address
is Two Portland Square, Portland, Maine 04101.

Beth Hanson, Assistant Secretary (age 30)

Corporate Administrator, Forum Financial Services, Inc., with which she has been
associated since 1995. Prior thereto, Ms. Hanson was an English language
instructor with the Overseas Training Center, Inc. in Osaka, Japan. Her address
is Two Portland Square, Portland, Maine 04101.

TRUSTEES AND OFFICERS OF CORE TRUST

The Trustees and officers of Core Trust and their principal occupations during
the past five years are set forth below. Each Trustee who is an "interested
person" (as defined by the 1940 Act) of Core Trust is indicated by an asterisk.
Messrs, Keffer, Goldstein, and Butt, officers of Core Trust, all currently serve
as officers of the Trust. Accordingly, for background information pertaining to
these officers, see "Trustees and Officers of the Trust" above.

John Y. Keffer*, Chairman and President

12
<PAGE>

Costas Azariadis, Trustee (age 53)

Professor of Economics, University of California, Los Angeles, since July 1992.
Prior thereto, Dr. Azariadis was Professor of Economics at the University of
Pennsylvania. His address is Department of Economics, University of California,
Los Angeles, 405 Hilgard Avenue, Los Angeles, California 90024.

James C. Cheng, Trustee (age 54)

Managing Director, Forum Financial Services, Inc. since September 1991.
President of Technology Marketing Associates (a marketing consulting company)
since September 1991. Prior thereto, Mr. Cheng was President and Chief Executive
Officer of Network Dynamics, Incorporated (a software development company). His
address is Two Portland Square, Portland, Maine 04101.

J. Michael Parish, Trustee (age 53)

Partner at the law firm of Reid & Priest. Prior to 1995, Mr. Parish was a
partner at Winthrop Stimson Putnam & Roberts since 1989. His address is 40 West
57th Street, New York, New York 10019.

Richard C. Butt, Treasurer

Sara M. Clark, Vice President and Assistant Treasurer (age 33)

Managing Director, Forum Financial Services, Inc., with which she has been
associated since 1994. Prior thereto, from 1991 to 1994, Ms. Clark was
Controller of Wright Express Corporation (a national credit card company) and
for six years prior thereto was employed at Deloitte & Touche LLP as an
accountant. Ms. Clark is also an officer of various registered investment
companies for which Forum Financial Services, Inc. serves as manager,
administrator and/or distributor. Her address is Two Portland Square, Portland,
Maine 04101.

David I. Goldstein, Vice President and Secretary

Thomas G. Sheehan, Vice President and Assistant Secretary (age 42)

Counsel, Forum Financial Services, Inc. since October, 1993. Prior thereto, Mr.
Sheehan was a Special Counsel in the Division of Investment Management of the
U.S. Securities and Exchange Commission in Washington, D.C. His address is Two
Portland Square, Portland, Maine 04101.

Renee Walker, Assistant Secretary (age 26)

Fund Administrator, Forum Financial Services, Inc. with which she has been
associated since 1994. Prior thereto, Ms. Walker was an administrator at
Longwood Partners (the manager of a hedge fund partnership) for a year. From
1991 to 1993, Ms. Walker was a sales representative assistant at PaineWebber
Incorporated (a broker-dealer). Her address is Two Portland Square, Portland,
Maine 04101.

TRUSTEE COMPENSATION

Each Trustee of the Trust is paid $1,000 for each Board meeting attended
(whether in person or by electronic communication) and is paid $1,000 for each
Committee meeting attended on a date when a Board meeting is not held. Trustees
are also reimbursed for travel and related expenses incurred in attending
meetings of the Board. No officer of the Trust is compensated by the Trust.
Since commencement of the Trust's operations, Messrs. Keffer, Singer and Franko
have not accepted any fees or reimbursement of their expenses in connection with
their service as Trustees.

The following table provides the aggregate compensation paid to each Trustee.
The Trust has not adopted any form of retirement plan covering Trustees or
officers. Information is presented for the fiscal year ended August 31, 1996.

13
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C>
Accrued Annual
Aggregate Pension Benefits Upon Total
Trustee Compensation Benefits Retirement Compensation
------- ------------ -------- ---------- ------------
Mr. DeWald $4,000 None None $4,000
Mr. Estrada $4,000 None None $4,000
Mr. Franko None None None None
Mr. Keffer None None None None
Mr. Singer None None None None
</TABLE>

INVESTMENT ADVISER

The Funds do not have an investment adviser. In the event that the Board
determines it is in the best interest of a Fund to withdraw its investment from
its corresponding Portfolio, the Board will determine whether to invest in
another portfolio or to directly retain an investment adviser. Shareholder
approval of a new investment advisory agreement between the Trust and the
Adviser would not be necessary, provided that the agreement is substantially
similar to the current Investment Advisory Agreements of Core Trust.

The Adviser furnishes at its own expense all services, facilities and personnel
necessary in connection with managing each Portfolio's investments and effecting
portfolio transactions for each Portfolio. The Investment Advisory Agreement
between Core Trust and the Adviser will continue in effect only if its
continuance is specifically approved at least annually by the Core Trust Board
or by vote of the respective Portfolio's shareholders, and in either case, by a
majority of the Core Trust trustees who are not parties to the Investment
Advisory Agreement or interested persons of any such party at a meeting called
for the purpose of voting on the Investment Advisory Agreement.

The Investment Advisory Agreement is terminable without penalty by Core Trust
with respect to a Portfolio on 60 days' written notice when authorized either by
vote of the Portfolio's interestholders or by a vote of a majority of the Core
Trust Board, or by the Adviser on 60 days' written notice and will automatically
terminate in the event of its assignment. The Investment Advisory Agreement also
provides that, with respect to each Portfolio, the Adviser shall not be liable
for any error of judgment or mistake of law or for any act or omission in the
performance of the Adviser's duties or by reason of reckless disregard of the
Adviser's obligations and duties under the Investment Advisory Agreement.

For the services provided by the Adviser, Core Trust pays the Adviser, with
respect to each Portfolio, a fee based upon the total average daily net assets
of the Portfolios ("Total Portfolio Assets") at an annual rate of 0.06% of the
first $200 million of Total Portfolio Assets, 0.04% of the next $300 million of
Total Portfolio Assets, and 0.03% of the remaining Total Portfolio Assets. These
fees are accrued by Core Trust daily with respect to each Portfolio in the
proportion that Portfolio's average daily net assets bear to Total Portfolio
Assets and are payable monthly in arrears on the first day of each calendar
month for services performed under the agreement during the prior calendar
month. The Adviser is paid a minimum annual fee of $50,000 for its services to
the Trust with respect to the Portfolios.

The Adviser may carry out any of its obligations under the Investment Advisory
Agreement by employing, subject to the supervision of the Core Trust Board, one
or more subadvisers who are registered as investment advisers or who are exempt
from registration. The Investment Advisory Agreement provides that the Adviser
shall not be liable for any act or omission of any subadviser except with
respect to matters as to which the Adviser specifically assumes responsibility
in writing. There are currently no investment subadvisory agreements with
respect to the Portfolios.

The Adviser was established in 1987 and is indirectly wholly-owned and
controlled by John Y. Keffer. In connection with the January 2, 1998 acquisition
of Linden Asset Management, Inc., the present investment adviser of each
Portfolio, the Adviser has entered into a consulting agreement with a new
company solely owned by Anthony R. Fischer, Jr., former owner, president and
sole director of Linden, under which Mr. Fischer will continue to provide
portfolio management services to the Portfolios under the supervision of the
Adviser. Mr. Fischer has over 20 years experience in managing pools of assets,
most recently as Senior Vice President and Treasurer of United California
Savings Bank, Santa Ana, California from 1984 to 1989 and, immediately prior
thereto, as a Manager for five years at PaineWebber Jackson & Curtis, New York,
New York.

14
<PAGE>

Table 1 in Appendix C shows the dollar amount of investment advisory fees paid
by the Portfolios and the Funds.

MANAGER AND DISTRIBUTOR

MANAGEMENT SERVICES. Forum Financial Services, Inc. supervises the overall
management of the Trust (which includes, among other responsibilities,
negotiation of contracts and fees with, and monitoring of performance and
billing of, the transfer agent and custodian and arranging for maintenance of
books and records of the Trust), and provides the Trust with general office
facilities pursuant to a Management Agreement with the Trust. The Management
Agreement will remain in effect for a period of twelve months with respect to a
Fund and thereafter is automatically renewed each year for an additional term of
one year.

The Management Agreement terminates automatically if it is assigned and may be
terminated without penalty with respect to any Fund by vote of that Fund's
shareholders or by either party on not more than 60 days' written notice. The
Management Agreement provides that Forum shall not be liable for any error of
judgment or mistake of law or for any act or omission in the administration or
management of the Trust, except for willful misfeasance, bad faith or gross
negligence in the performance of Forum's duties or by reason of reckless
disregard of its obligations and duties under the Management Agreement.

At the request of the Board, Forum provides persons satisfactory to the Board to
serve as officers of the Trust. Similarly, at the request of the Core Trust
Board, Forum provides persons satisfactory to the Core Trust Board to serve as
officers of Core Trust. Those officers, as well as certain other employees and
Trustees of the Trust and Core Trust, may be directors, officers or employees of
Forum, the Adviser, Forum Advisors or their affiliates.

Table 2 in Appendix C shows the dollar amount of fees payable under the
Management Agreement between Forum and the Trust with respect to the Fund.

Forum provides substantially similar services to each Portfolio pursuant to an
Administration Agreement with Core Trust. The provisions of the Administration
Agreement are substantially similar to those of the Trust's Management
Agreement.

15
<PAGE>

Table 2 of Appendix C shows the dollar amount of fees payable under the
Administration Agreement between Forum and Core Trust with respect to each
Portfolio.

DISTRIBUTION SERVICES. Forum is also the Trust's distributor and acts as the
agent of the Trust in connection with the offering of shares of the Funds (and
each class thereof) pursuant to a Distribution Agreement. With respect to each
Fund, the Distribution Agreement will continue in effect for twelve months and
will continue in effect thereafter only if its continuance is specifically
approved at least annually by the Board or by vote of the shareholders entitled
to vote thereon, and in either case, by a majority of the Trustees who (i) are
not parties to the Distribution Agreement, (ii) are not interested persons of
any such party or of thrust and (iii) with respect to any class for which the
Trust has adopted a distribution plan, have no direct or indirect financial
interest in the operation of that distribution plan or in the Distribution
Agreement, at a meeting called for the purpose of voting on the Distribution
Agreement. All subscriptions for shares obtained by Forum are directed to the
Trust for acceptance and are not binding on the Trust until accepted by it.
Forum receives no compensation or reimbursement of expenses for the distribution
services provided pursuant to the Distribution Agreement except as may be paid
with respect to the Investor class pursuant to that class' distribution plan.

The Distribution Agreement provides that Forum shall not be liable for any error
of judgment or mistake of law or in any event whatsoever, except for willful
misfeasance, bad faith or gross negligence in the performance of Forum's duties
or by reason of reckless disregard of its obligations and duties under the
Distribution Agreement.

The Distribution Agreement is terminable with respect to a Fund without penalty
by the Trust on 60 days' written notice when authorized either by vote of the
Fund's shareholders or by a vote of a majority of the Board, or by Forum on 60
days' written notice, and will automatically terminate in the event of its
assignment. With respect to any class that has adopted a distribution plan, the
Distribution Agreement is also terminable upon similar notice by a majority of
the Trustees who (i) are not interested persons of the Trust and (ii) have no
direct or indirect financial interest in the operation of that distribution plan
or in the Distribution Agreement ("Qualified Trustees"). The Distribution
Agreement will automatically terminate in the event of its assignment.

Forum acts as sole placement agent for interests in the Portfolios and receives
no compensation for those services from the Portfolios.

EXPENSES

The Trust pays all of its expenses, including: interest charges, taxes,
brokerage fees and commissions; expenses of issue, repurchase and redemption of
shares; premiums of insurance for the Trust, its Trustees and officers and
fidelity bond premiums; applicable fees, interest charges and expenses of third
parties, including the Trust's manager, investment adviser, investment
subadviser, custodian, transfer agent and fund accountant; fees of pricing,
interest, distribution, credit and other reporting services; costs of membership
in trade associations; telecommunications expenses; funds transmission expenses;
auditing, legal and compliance expenses; costs of forming the Trust and
maintaining its existence; costs of preparing and printing the Trust's
prospectuses, statements of additional information and shareholder reports and
delivering them to existing shareholders; expenses of meetings of shareholders
and proxy solicitations therefore; costs of maintaining books and accounts and
preparing tax returns; costs of reproduction, stationery and supplies; fees and
expenses of the Trust's Trustees; compensation of the Trust's officers and
employees who are not employees of the Adviser, Forum or their respective
affiliates and costs of other personnel (who may be employees of the Adviser,
Forum or their respective affiliates) performing services for the Trust; costs
of Trustee meetings; SEC registration fees and related expenses; and state or
foreign securities laws registration fees and related expenses.

Fund expenses also include the Fund's pro rata portion of expenses of its
corresponding Portfolio.

The estimated total operating expenses for each class of shares of each Fund for
the Trust's current fiscal year are as follows:

16
<PAGE>
<TABLE>
<S> <C> <C> <C>
Treasury Government
Cash Fund Cash Fund Cash Fund
--------- --------- ---------
Universal Shares 0.27% 0.19% 0.27%
Institutional Shares 0.45% 0.54% 0.54%
Investor Shares 0.83% 0.83% 0.83%
</TABLE>

This information for the respective class is provided in the "Prospectus
Summary" section of each prospectus.

INVESTOR CLASS DISTRIBUTION PLAN

In accordance with Rule 12b-1 under the 1940 Act, with respect to the Investor
Class of each Fund, the Trust adopted a distribution plan (the "Investor Class
Plan") which provides for the payment to Forum of a Rule 12b-1 fee at the annual
rate of 0.25% of the average daily net assets of the Investor class of each Fund
as compensation for Forum's services as distributor.

The Investor Class Plan provides that all written agreements relating to that
plan must be approved by the Board, including a majority of the Qualified
Trustees. In addition, the Investor Class Plan (as well as the Distribution
Agreement) requires the Trust and Forum to prepare and submit to the Board, at
least quarterly, and the Board will review, written reports setting forth all
amounts expended under the Investor Class Plan and identifying the activities
for which those expenditures were made.

The Investor Class Plan provides that it will remain in effect for one year from
the date of its adoption and thereafter shall continue in effect provided it is
approved at least annually by the shareholders or by the Board, including a
majority of the Qualified Trustees. The Investor Class Plan further provides
that it may not be amended to increase materially the costs which may be borne
by the Trust for distribution pursuant to the Investor Class Plan without
shareholder approval and that other material amendments of the Investor Class
Plan must be approved by the Qualified Trustees. The Investor Class Plan may be
terminated at any time by the Board, by a majority of the Qualified Trustees, or
by a Fund's Investor class shareholders.

Table 3 in Appendix C shows the dollar amount of fees payable under the Investor
Class Plan with respect to each Fund.

TRANSFER AGENT

Forum Financial Corp. acts as transfer agent, distribution disbursing agent and
fund accountant for the Trust pursuant to a Transfer Agency and Fund Accounting
Agreement. The Transfer Agency and Fund Accounting Agreement is automatically
renewed each year for an additional term of one year.

Among the responsibilities of the FFC as transfer agent for the Trust are, with
respect to shareholders of record: (1 (1) answering customer inquiries regarding
account status and history, the manner in which purchases and redemptions of
shares of the Funds may be effected and certain other matters pertaining to the
Funds; (2) assisting shareholders in initiating and changing account
designations and addresses; (3) providing necessary personnel and facilities to
establish and maintain shareholder accounts and records, assisting in processing
purchase and redemption transactions and receiving wired funds; (4) transmitting
and receiving funds in connection with customer orders to purchase or redeem
shares; (5) verifying shareholder signatures in connection with changes in the
registration of shareholder accounts; (6) furnishing periodic statements and
confirmations of purchases and redemptions; (7) arranging for the transmission
of proxy statements, annual reports, prospectuses and other communications from
the Trust to its shareholders; (8) arranging for the receipt, tabulation and
transmission to the Trust of proxies executed by shareholders with respect to
meetings of shareholders of the Trust; and (9) providing such other related
services as the Trust or a shareholder may reasonably request.

FFC or any sub-transfer agent or processing agent may also act and receipt
compensation for acting as custodian, investment manager, nominee, agent or
fiduciary for its customers or clients who are shareholders of the Funds with
respect to assets invested in the Funds. FFC or any sub-transfer agent or other
processing agent may elect to credit

17
<PAGE>

against the fees payable to it by its clients or customers all or a portion of
any fee received from the Trust or from FFC with respect to assets of those
customers or clients invested in the Funds. FFC, Forum or sub-transfer agents or
processing agents retained by the FFC may be Participating Organizations and, in
the case of sub-transfer agents or processing agents, may also be affiliated
persons of FFC or Forum.

For its transfer agency services, FFC receives an annual fee from each Fund of
0.05% of each Fund's average daily net assets attributable to Universal Shares
and 0.20% of each Fund's average daily net assets attributable to Institutional
Shares and Investor Shares. Prior to September 1, 1995, the fee was 0.25% with
respect to each class of shares. In addition, FFC receives a fee from each Fund
of $6,000 per year for each class of shares above one for which there are shares
outstanding plus an annual per shareholder account fee of $120 per Universal
Shares shareholder and $24 per Institutional Shares and Investor Shares
shareholder. Prior to September 1, 1995, the shareholder account fee was $18 per
account.

FFC acts as interestholder recordkeeper for each Portfolio. FFC receives one fee
from Core Trust with respect to both these interestholder recordkeeping services
and portfolio accounting services, as described below under "Fund Accountant".

SHAREHOLDER SERVICE PLAN AND AGREEMENTS

The Trust has adopted a shareholder service plan ("Shareholder Service Plan")
with respect to the Institutional class and the Investor class of each Fund
which provides that Forum may obtain the services of financial institutions,
including Imperial Trust Company (the Trust's custodian), to act as shareholder
servicing agents for their customers invested in those classes.

In adopting the Shareholder Service Plan, the Trustees considered among other
things whether (i) the Shareholder Service Plan is in the best interests of the
applicable classes and their respective shareholders, (ii) the services to be
performed pursuant to the Shareholder Service Plan are required for the
operation of the applicable classes, (iii) the service organizations can provide
services at least equal, in nature and quality, to those provided by others,
including the Trust, providing similar services, and (iv) the fees for such
services are fair and reasonable in light of the usual and customary charges
made by other entities, especially non-affiliated entities, for services of the
same nature and quality.

The Shareholder Service Plan provides that all written agreements relating to
that plan must be approved by the Board, including a majority of the Qualified
Trustees. In addition, the Shareholder Service Plan (as well as the various
shareholder service agreements) requires the Trust and Forum to prepare and
submit to the Board, at least quarterly, and the Board will review written
reports setting forth all amounts expended under the plan and identifying the
activities for which those expenditures were made.

The Shareholder Service Plan provides that it will remain in effect for one year
from the date of its adoption and thereafter shall continue in effect provided
it is approved at least annually by the shareholders or by the Board, including
a majority of the Qualified Trustees. The Shareholder Service Plan further
provides material amendments of the plan must be approved by the Qualified
Trustees. The Shareholder Service Plan may be terminated at any time by the
Board or by a majority of the Qualified Trustees.

The Trust may enter into shareholder servicing agreements with various
Shareholder Servicing Agents pursuant to which those agents, as agent for their
customers, may agree among other things to: (i) answer shareholder inquiries
regarding the manner in which purchases, exchanges and redemptions of shares of
the Trust may be effected and other matters pertaining to the Trust's services;
(ii) provide necessary personnel and facilities to establish and maintain
shareholder accounts and records; (iii) assist shareholders in arranging for
processing purchase, exchange and redemption transactions; (iv) arrange for the
wiring of funds; (v) guarantee shareholder signatures in connection with
redemption orders and transfers and changes in shareholder-designated accounts;
(vi) integrate periodic statements with other shareholder transactions; and
(vii) provide such other related services as the shareholder may request.

18
<PAGE>

As Participating Organizations, some Shareholder Servicing Agents also may
impose certain conditions on their customers, subject to the terms of the
Trust's Prospectus, in addition to or different from those imposed by the Trust,
such as requiring a minimum initial investment or by charging their customers a
direct fee for their services. Some Shareholder Servicing Agents may also act
and receive compensation for acting as custodian, investment manager, nominee,
agent or fiduciary for its customers or clients who are shareholders of the
Funds with respect to assets invested in the Funds. These Shareholder Servicing
Agents may elect to credit against the fees payable to it by its clients or
customers all or a portion of any fee received from the Trust with respect to
assets of those customers or clients invested in the Funds.

Table 4 in Appendix C shows the dollar amount of fees payable under the
Shareholder Service Plan with respect to Institutional Shares and Investor
Shares of each Fund.

FUND ACCOUNTANT

FFC performs portfolio accounting services for each Portfolio pursuant to a Fund
Accounting Agreement with Core Trust.

Under its agreement, FFC prepares and maintains books and records of each
Portfolio on behalf of Core Trust that are required to be maintained under the
1940 Act, calculates the net asset value per share of each Portfolio (and each
investor therein) and distributions and prepares periodic reports to
interestholders of the Portfolios and the SEC. For these services and its
services as transfer agent of the Portfolios, FFC receives from Core Trust with
respect to each Portfolio a fee of the lesser of 0.05% of the average daily net
assets of the Portfolios or $48,000 plus, for each investor in a Portfolio above
one (excluding Forum and its affiliates), $6,000 per year. In addition, FFC is
paid an additional $12,000 per year with respect to Portfolios with more than
25% of their total assets invested in asset backed securities, that have more
than 100 security positions or that have a monthly portfolio turnover rate of
10% or greater.

FFC is required to use its best judgment and efforts in rendering fund
accounting services and is not be liable to Core Trust for any action or
inaction in the absence of bad faith, willful misconduct or gross negligence.
FFC is not responsible or liable for any failure or delay in performance of its
fund accounting obligations arising out of or caused, directly or indirectly, by
circumstances beyond its reasonable control and Core Trust has agreed to
indemnify and hold harmless FFC, its employees, agents, officers and directors
against and from any and all claims, demands, actions, suits, judgments,
liabilities, losses, damages, costs, charges, counsel fees and other expenses of
every nature and character arising out of or in any way related to FFC's actions
taken or failures to act with respect to a Portfolio or based, if applicable,
upon information, instructions or requests with respect to a Portfolio given or
made to FFC by an officer of the Trust duly authorized. This indemnification
does not apply to FFC's actions taken or failures to act in cases of FFC's own
bad faith, willful misconduct or gross negligence.

The Trust has retained FFC as fund accountant to each Fund under arrangements
and agreements substantially similar to the arrangements and agreements
described above with respect to the Portfolios. No fee is payable for fund
accounting services under the Trust's Transfer Agency and Fund Accounting
Agreement as long as a Fund is invested in its corresponding Portfolio or a
similar investment.

Prior to investing in the Portfolios, each Fund paid fund accounting fees
directly. Table 5 in Appendix C shows the dollar amount of fees payable under
the Trust's Transfer Agency and Fund Accounting Agreement with respect to each
Fund.

6. DETERMINATION OF NET ASSET VALUE

The Trust and each Portfolio does not determine net asset value on the following
holidays: New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Memorial
Day, Independence Day, Labor Day, Columbus Day, Veterans' Day, Thanksgiving and
Christmas.

19
<PAGE>

Pursuant to the rules of the SEC, both the Board and the Core Trust Board have
established procedures to stabilize each Fund's and each Portfolio's, as
applicable, net asset value at $1.00 per share. These procedures include a
review of the extent of any deviation of net asset value per share as a result
of fluctuating interest rates, based on available market rates, from each Fund's
and Portfolio's, as applicable, $1.00 amortized cost price per share. Should
that deviation exceed 1/2 of 1%, the Board and the Core Trust Board,
respectively, will consider whether any action should be initiated to eliminate
or reduce material dilution or other unfair results to shareholders. Such action
may include redemption of shares in kind, selling portfolio securities prior to
maturity, reducing or withholding distributions and utilizing a net asset value
per share as determined by using available market quotations.

In determining the appropriate market value of portfolio investments, the
Portfolios may employ outside organizations, which may use a matrix or formula
method that takes into consideration market indices, matrices, yield curves and
other specific adjustments. This may result in the securities being valued at a
price different from the price that would have been determined had the matrix or
formula method not been used. All cash, receivables and current payables are
carried at their face value.

Each investor in a Portfolio including the Funds, may add to or reduce its
investment in that Portfolio on each Fund Business day. The Portfolios maintain
the same business days as do the Funds. As of the close of regular trading on
any Fund Business Day, the value of a Fund's beneficial interest in a Portfolio
is determined by multiplying the net asset value of the Portfolio by the
percentage, effective for that day, which represents the Fund's share of the
aggregate beneficial interests in the Portfolio. Any additions or reductions,
which are to be effected as of the close of the Fund Business Day, are then
effected. The Fund's percentage of the aggregate beneficial interests in the
Portfolio are then recomputed as the percentage equal to the fraction (i) the
numerator of which is the value of the Fund's investment in the Portfolio as of
the close of the Fund Business Day plus or minus, as the case may be, the amount
of net additions to or reductions from the Fund's investment in the Portfolio
effected as of that time, and (ii) the denominator of which is the aggregate net
asset value of the Portfolio as of the close of the Fund Business Day plus or
minus, as the case may be, the amount of net additions to or reductions from the
aggregate investments in the Portfolio by all investors in the Portfolio. The
percentage determined is then applied to determine the value of the Fund's
interest in the Portfolio as of the close of the next Fund Business Day.

7. PORTFOLIO TRANSACTIONS

Purchases and sales of portfolio securities for each Portfolio usually are
principal transactions. Portfolio securities are normally purchased directly
from the issuer or from an underwriter or market maker for the securities.
Purchases from underwriters of portfolio securities include a commission or
concession paid by the issuer to the underwriter, and purchases from dealers
serving as market makers include the spread between the bid and asked price.
There usually are no brokerage commissions paid for any purchases. Since each
Fund's inception, no brokerage fees were paid by any Fund (during those periods
of the Funds invested directly in securities), nor any Portfolio. While Core
Trust does not anticipate that the Portfolios will pay any amounts of
commission, in the event a Portfolio pays brokerage commissions or other
transaction-related compensation, the payments may be made to broker-dealers who
pay expenses of the Portfolio that it would otherwise be obligated to pay
itself. Any transaction for which a Portfolio pays transaction-related
compensation will be effected at the best price and execution available, taking
into account the amount of any payments made on behalf of the Portfolio by the
broker-dealer effecting the transaction.

Allocations of transactions to dealers and the frequency of transactions are
determined for each Portfolio by the Adviser in its best judgment and in a
manner deemed to be in the best interest of shareholders of that Portfolio
rather than by any formula. The primary consideration is prompt execution of
orders in an effective manner and at the most favorable price available to the
Portfolio.

20
<PAGE>

Investment decisions for the Portfolios will be made independently from those
for any other account or investment company that is or may in the future become
managed by the Adviser, Forum Advisors or their respective affiliates. If,
however, a Portfolio and other investment companies or accounts managed by the
Adviser or Forum Advisors are contemporaneously engaged in the purchase or sale
of the same security, the transactions may be averaged as to price and allocated
equitably to each account. In some cases, this policy might adversely affect the
price paid or received by a Portfolio or the size of the position obtainable for
the Portfolio. In addition, when purchases or sales of the same security for a
Portfolio and for other investment companies managed by the Adviser or Forum
Advisors occur contemporaneously, the purchase or sale orders may be aggregated
in order to obtain any price advantages available to large denomination
purchases or sales.

8. ADDITIONAL PURCHASE AND REDEMPTION INFORMATION

Shares of each Fund are sold on a continuous basis by the distributor without
any sales charge. Shareholders may effect purchases or redemptions or request
any shareholder privilege in person at the offices of the Transfer Agent, which
are located at Two Portland Square, Portland, Maine 04101.

Investors who are not shareholders of record may nonetheless have the right to
vote shares depending upon their arrangement with the financial institution that
holds their shares.

Certain Participating Organizations (as defined in the Prospectus) may enter
purchase orders with payment to follow.

BANKING LAW INFORMATION

Banking laws and regulations generally permit a bank or bank affiliate to
purchase shares of an investment company as agent for and upon the order of a
customer and permit a bank or bank affiliate to serve as a Participating
Organization or perform sub-transfer agent or similar services for the Trust and
its shareholders. If a bank or bank affiliate were prohibited from performing
all or a part of the foregoing services, its shareholder customers would be
permitted to remain shareholders of the Trust and alternative means for
continuing to serve them would be sought.

REDEMPTION-IN-KIND

Redemptions may be made wholly or partially in portfolio securities if the Board
determines that payment in cash would be detrimental to the best interests of
the Fund. The Trust has filed an election with the SEC pursuant to which a Fund
will only consider effecting a redemption in portfolio securities if the
particular shareholder is redeeming more than $250,000 or 1% of the Fund's net
asset value, whichever is less, during any 90-day period. Core Trust has filed a
similar election.

ADDITIONAL REDEMPTION MATTERS

In addition to the situations described in the Prospectus under "Purchases and
Redemptions of Shares", the Trust may redeem shares involuntarily to reimburse a
Fund for any loss sustained by reason of the failure of a shareholder to make
full payment for shares purchased by the shareholder or to collect any charge
relating to transactions effected for the benefit of a shareholder which is
applicable to a Fund's shares as provided in the Prospectus from time to time.

Redemption proceeds will not be paid unless any check (including a certified or
cashier's check) used for investment has been cleared by the shareholder's bank,
which may take up to 15 calendar days.

21
<PAGE>

EXCHANGE PRIVILEGE

The exchange privilege permits shareholders of each class of the Funds to
exchange their shares for shares of the same class of any other Fund of the
Trust or shares of certain other portfolios of investment companies which retain
Forum or its affiliates as investment advisor or distributor and which
participate in the Trust's exchange privilege program ("Participating Fund").
Exchange transactions will be made on the basis of relative net asset value per
share at the time of the exchange transaction. Exchanges are subject to the fees
charged by, and the restrictions listed in the Prospectus for, the Participating
Fund into which a shareholder is exchanging, including minimum investment
requirements. For Federal tax purposes, exchange transactions are treated as
sales on which a purchaser will realize a capital gain or loss depending on
whether the value of the shares redeemed is more or less than his basis in such
shares at the time of the transaction.

By the use of the exchange privilege, the shareholder authorizes the Transfer
Agent to act upon the instruction of any person representing himself either to
be, or to have the authority to act on behalf of, the investor and is believed
by the Transfer Agent to be genuine. The records of the Transfer Agent of such
instructions are binding. Proceeds of an exchange transaction may be invested
only in another Participating Fund account for which the share registration is
the same as the account from which the exchange is made.

If a shareholder exchanges into a Participating Fund that imposes a sales
charge, that shareholder is required to pay the difference between the Fund's
sales charge and any sales charge the shareholder has previously paid in
connection with the shares being exchanged.

The terms of the exchange privilege are subject to change, and the privilege may
be terminated by any of the Participating Funds or the Trust. However the
privilege will not be terminated, and no material change that restricts the
availability of the privilege to shareholders will be implemented, without 60
days' notice to shareholders, to the extent required by the applicable
regulation.

CHECK WRITING

Because of the difficulty of determining in advance the exact value of a
shareholder's Fund account, a shareholder may not use a redemption draft
("check") to close a Fund account. There are currently no charges for the check
writing privilege, but a shareholder's Fund account will be charged a fee for
stopping payment of a check upon a Shareholder's request or if a check cannot be
honored because of insufficient funds or other valid reasons. All drafts are
payable through Imperial Bank, an affiliate of the Funds' custodian and the
checkwriting privilege is subject to such rules as Imperial Bank may from to
time adopt.

9. TAXATION

Qualification as a regulated investment company under the Internal Revenue Code
of 1986, as amended, does not, of course, involve governmental supervision of
management or investment practices or policies. The information set forth in the
Prospectus and the following discussion relate solely to Federal income taxes on
distributions and other distributions by the Funds and assumes that each Fund
qualifies for treatment as a regulated investment company. Investors should
consult their own counsel for further details and for the application of
Federal, state and local tax laws to the investor's particular situation.

In order to continue to qualify for treatment as a regulated investment company
under the Internal Revenue Code, each Fund must distribute to its shareholders
for each taxable year at least 90% of its net investment income and must meet
several additional requirements. Among these requirements are the following: (1)
each Fund must derive at least 90% of its gross income each taxable year from
distributions, interest, payments with respect to securities loans, gains from
the sale or other disposition of securities and certain other income; (2)
subject to certain exceptions, at the close of each quarter of the Fund's
taxable year, at

22
<PAGE>

least 50% of the value of its total assets must be represented by cash and cash
items, U.S. Government Securities and other securities, with these other
securities limited, in respect of any one issuer, to an amount that does not
exceed 5% of the value of the Fund's total assets, and (3) subject to certain
exceptions, at the close of each quarter of the Fund's taxable year, not more
than 25% of the value of its total assets may be invested in securities (other
than U.S. Government Securities) of any one issuer.

Each Fund expects to derive substantially all of its gross income (exclusive of
capital gains) from sources other than dividends. Accordingly, it is expected
that none of the Funds' distributions will qualify for the dividends-received
deduction for corporations.

Distributions declared by a Fund in October, November, or December of any year
and payable to shareholders of record on a date in such a month will be deemed
to have been paid by the Fund and received by the shareholders on December 31 of
the year declared if paid by the Fund during the following January.

10. OTHER INFORMATION

CUSTODIAN

Pursuant to a Custodian Contract with Core Trust, Imperial Trust Company, 201
North Figueroa Street, Suite 610, Los Angeles, California 90012, a subsidiary of
Imperial Bank, acts as the custodian of each Portfolio's assets. The custodian's
responsibilities include safeguarding and controlling the Portfolios cash and
securities and determining income payable on and collecting interest on
Portfolio investments. Core Trust pays the custodian a fee at an annual rate of
0.025% of each Portfolio's average daily net assets.

AUDITORS

[ ], independent auditors, acts as auditors for the Trust and as auditors for
the Portfolios.

THE TRUST AND ITS SHAREHOLDERS

The Trust is a business trust organized under Delaware law. Delaware law
provides that shareholders shall be entitled to the same limitations of personal
liability extended to stockholders of private corporations for profit. The
securities regulators of some states, however, have indicated that they and the
courts in their state may decline to apply Delaware law on this point.

The Trust Instrument contains an express disclaimer of shareholder liability for
the debts, liabilities, obligations, and expenses of the Trust and requires that
a disclaimer be given in each contract entered into or executed by the Trust or
the Trustees. The Trust Instrument provides for indemnification out of each
series' property of any shareholder or former shareholder held personally liable
for the obligations of the series. The Trust Instrument also provides that each
series shall, upon request, assume the defense of any claim made against any
shareholder for any act or obligation of the series and satisfy any judgment
thereon. Thus, the risk of a shareholder incurring financial loss on account of
shareholder liability is limited to circumstances in which Delaware law does not
apply, no contractual limitation of liability was in effect and the portfolio is
unable to meet its obligations. Forum believes that, in view of the above, there
is no risk of personal liability to shareholders.

The Trust Instrument further provides that the Trustees shall not be liable to
any person other than the Trust or its shareholders; moreover, the Trustees
shall not be liable for any conduct whatsoever, provided that a Trustee is not
protected against any liability to which he would otherwise by subject by reason
of willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office.

23
<PAGE>

The Board is required to call a meeting of shareholders for the purpose of
voting upon the removal of any trustee when so requested in writing by the
shareholders of record holding at least 10% of the Trust's outstanding shares.

Each series capital consists of shares of beneficial interest. Shares are fully
paid and nonassessable, except as set forth above with respect to Trustee and
shareholder liability. Shareholders representing 10% or more of the Trust or a
series may, as set forth in the Trust Instrument, call meetings of the Trust or
series for any purpose related to the Trust or series, as the case may be,
including, in the case of a meeting of the entire Trust, the purpose of voting
on removal of one or more Trustees.

Generally such terminations must be approved by the vote of the holders of a
majority of the outstanding shares of the Trust or the series; however, the
Trustees may, without prior shareholder approval, change the form of
organization of the Trust by merger, consolidation or incorporation. If not so
terminated or reorganized, the Trust and its series will continue indefinitely.
Under the Trust Instrument, the Trustees may, without shareholder vote, cause
the Trust to merge or consolidate into one or more trusts, partnerships or
corporations or cause the Trust to merge or consolidate into one or more trusts,
partnerships or corporations or cause the Trust to be incorporated under
Delaware law, so long as the surviving entity is an open-end management
investment company that will succeed to or assume the Trust's registration
statement.

SHAREHOLDINGS

As of December 26, 1996, the officers and trustees of the Trust as a group owned
less than 1% of the outstanding shares of each Fund.

Table 6 to Appendix C lists the persons who owned of record 5% or more of the
outstanding shares of a class of shares of a Fund as of December 26, 1996.

MASTER FEEDER ARRANGEMENT

The Board may withdraw a Fund's assets from a Portfolio if it determines that to
be in the best interests of the Fund. The inability of a Fund that withdrew its
assets from its corresponding Portfolio to find a suitable investment adviser,
in the event the Board decided not to permit the Adviser to manage the Fund's
assets could have a significant impact on shareholders of the Fund. Each
investor in a Portfolio, including the Funds, may be deemed to be liable for all
obligations of the Portfolio, but not any other portfolio of Core Trust. The
risk to an investor in the Portfolio of incurring financial loss on account of
such liability, however, would be limited to circumstances in which the
Portfolio was unable to meet its obligations.

11. FINANCIAL STATEMENTS

The Statements of Assets and Liabilities, Statements of Operations, Statements
of Changes in Net Assets, notes thereto and Financial Highlights of the Funds
for the fiscal year ended August 31, 1997 and the Independent Auditors' Report
thereon (included in the Annual Report to Shareholders), which are delivered
along with this SAI, are incorporated herein by reference. Also incorporated by
reference into this SAI are the Schedules of Investments, Statements of Assets
and Liabilities, Statements of Operations, Statements of Changes in Net Assets,
and notes thereto, of the Portfolios for the fiscal year ended August 31, 1997
and the Independent Auditors' Report thereon (included in the Annual Report to
Shareholders).

24
<PAGE>

APPENDIX A - DESCRIPTION OF CERTAIN SECURITIES RATINGS

1. CORPORATE BONDS

MOODY'S INVESTORS SERVICE, INC. ("MOODY'S")

Bonds which are rated Aaa are judged by Moody's to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt edged." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group, they comprise what are generally known as
high-grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other elements present
which make the long-term risks appear somewhat larger than in Aaa securities.

STANDARD & POOR'S CORPORATION ("S&P")

Bonds rated AAA have the highest rating assigned by S&P. Capacity to pay
interest and repay principal is extremely strong.

Bonds rated AA have a very strong capacity to pay interest and repay principal
and differ from the highest rated issues only in small degree.

FITCH INVESTORS SERVICE, INC. ("FITCH")

AAA Bonds are considered to be investment grade and of the highest credit
quality. The obligor has an exceptionally strong ability to pay interest and
repay principal, which is unlikely to be affected by reasonably foreseeable
events.

A Bonds are considered to be investment grade of high credit quality. The
obligor's ability to pay interest and repay principal is considered to be
strong, but may be more vulnerable to adverse changes in economic conditions and
circumstances than bonds with higher ratings.

Plus and minus signs are used with a rating symbol to indicate the relative
level of credit quality within the rating category. Plus and minus signs,
however, are not used in the AAA category.

2. COMMERCIAL PAPER

MOODY'S INVESTORS SERVICE, INC.

Moody's two highest ratings for short-term debt, including commercial paper, are
Prime-1 and Prime-2; both are judged investment grade, to indicate the relative
repayment ability of rated issuers.

Issuers (or supporting institutions) rated Prime-1 have a superior ability for
repayment of senior short-term debt obligations. Prime-1 repayment ability will
often be evidenced by many of the following characteristics:

Leading market positions in well-established industries.
High rates of return on funds employed.
Conservative capitalization structure with moderate reliance on debt
and ample asset protection.
Broad margins in earnings, coverage of fixed financial charges and
high internal cash generation.

A-1
<PAGE>

Well-established access to a range of financial markets and assured
sources of alternate liquidity.

Issuers rated Prime-2 by Moody's have a strong ability for repayment of senior
short-term debt obligations. This will normally be evidenced by many of the
characteristics of issuers rated Prime-1 but to a lesser degree. Earnings trends
and coverage ratios, while sound, may be more subject to variation.
Capitalization characteristics, while still appropriate, may be more affected by
external conditions. Ample alternate liquidity is maintained.

STANDARD & POOR'S CORPORATION

S&P's two highest commercial paper ratings are A and B. Issues in this category
are delineated with the numbers 1, 2 and 3 to indicate the relative degree of
safety. An A-1 designation indicates that the degree of safety regarding timely
payment is strong. Those issues determined to possess extremely strong safety
characteristics are denoted with a plus (+) sign designation. The capacity for
timely payment on issues with an A-2 designation is satisfactory. However, the
relative degree of safety is not as high as for issues designated A-1. A-3
issues have an adequate capacity for timely payment. They are, however, somewhat
more vulnerable to the adverse effects of changes in circumstances than
obligations carrying the higher designations. Issues rated B are regarded as
having only a speculative capacity for timely payment.

FITCH INVESTORS SERVICE, INC.

Fitch's short-term ratings apply to debt obligations that are payable on demand
or have original maturities of generally up to three years, including commercial
paper, certificates of deposit, medium-term notes, and municipal and investment
notes.

F-1+. Exceptionally Strong Credit Quality. Issues assigned this rating are
regarded as having the strongest degree of assurance for timely payment.

F-1. Very Strong Credit Quality. Issues assigned this rating reflect an
assurance of timely payment only slightly less in degree than issues rated F-1+.

F-2. Good Credit Quality. Issues assigned this rating have a satisfactory degree
of assurance for timely payment, but the margin of safety is not as great as for
issues assigned F-1+ or F-1 ratings.

A-2
<PAGE>

APPENDIX B - PERFORMANCE DATA

For the seven day period ended August 31, 1996, the annualized yields of each of
the classes of the Funds that were then operating were as follows:
<TABLE>
<S> <C> <C>
Current Yield Effective Yield
------------- ---------------
Treasury Cash Fund
Institutional Shares 4.77% 4.88%
Investor Shares 4.39% 4.49%

Government Cash Fund
Institutional Shares 4.94% 5.06%
Investor Shares (I) 4.62% 4.72%
Universal Shares 5.27% 5.41%

Cash Fund
Institutional Shares 4.88% 5.00%
Investor Shares 4.62% 4.73%
Universal Shares 5.18% 5.31%
</TABLE>

Note 1. As of January 1, 1997, there were no outstanding Investor Shares of
Government Cash Fund.

B-1
<PAGE>

APPENDIX C- MISCELLANEOUS TABLES

TABLE 1 - INVESTMENT ADVISORY FEES

Prior to September 1, 1995, the Funds paid advisory fees directly to the
Advisor.

For the fiscal year ended August 31, 1996, the fees paid under the Investment
Advisory Agreement with respect to each Portfolio were:

Treasury Cash Portfolio $12,930
Government Cash Portfolio $156,552
Cash Portfolio $38,083

For the fiscal year ended August 31, 1995, the fees paid under the Investment
Advisory Agreement with respect to each Fund were:

Treasury Cash Fund $9,149
Government Cash Fund $91,590
Cash Fund $37, 794

For the fiscal year ended August 31, 1994, the fees paid under the Investment
Advisory Agreement with respect to each Fund were:

Treasury Cash Fund $18,580
Government Cash Fund $99,163
Cash Fund $35,592

TABLE 2 - MANAGEMENT AND ADMINISTRATION FEES

For the fiscal year ended August 31, 1996, the fees payable by the Funds under
the Management Agreement and the Portfolios under the Administration Agreement
were:
<TABLE>
<S> <C> <C> <C>
Accrued Fee Fee Waived Fee Paid
----------- ---------- --------

Treasury Cash Fund/
Treasury Cash Portfolio
Management Fee $19 198 $9,307 $9,891
Administration Fee $19,902 $17,696 $1,506

Government Cash Fund/
Government Cash Portfolio
Management Fee $230,547 $104,558 $125,989
Administration Fee $230,634 $0 $230,634

Cash Fund/
Cash Portfolio
Management Fee $56,125 $3,719 $52,406
Administration Fee $56,113 $12,698 $43,415
</TABLE>

C-1
<PAGE>

For the fiscal year ended August 31, 1995, the fees payable by the Funds under
the Management Agreement were:
<TABLE>
<S> <C> <C> <C>
Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund $21,691 $10,845 $10,846
Government Cash Fund $189,955 $81,307 $108,648
Cash Fund $89,392 $44,661 $44,731

For the fiscal year ended August 31, 1994, the fees payable by the Funds under
the Management Agreement were:

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund $45,758 $22,879 $22,879
Government Cash Fund $205,856 $83,578 $122,278
Cash Fund $87,380 $43,645 $43,735

TABLE 3 - INVESTOR CLASS DISTRIBUTION FEES

For the fiscal year ended August 31, 1996, the fees payable under the Investor
Class Plan were as follows. All distribution fees were paid by Forum to dealers
or other persons for their distribution services.

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund $5,089 $3 $5,086
Government Cash Fund $340 $8 $332
Cash Fund $37,340 $36 $37,304

For the fiscal year ended August 31, 1995, no Investor Shares of Treasury Cash
Fund or Government Cash Fund were outstanding and, accordingly, no fees were
payable under the Investor Class Plan with respect to Investor Shares of those
Funds. For the fiscal year ended August 31, 1995, the fees payable under the
Investor Class Plan with respect to Cash Fund were as follows. All distribution
fees were paid by Forum to dealers or other persons for their distribution
services.

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund n/a n/a n/a
Government Cash Fund n/a n/a n/a
Cash Fund $684 $0 $684

For the fiscal year ended August 31, 1994, no Investor Shares were outstanding
and, accordingly, no fees were payable under the Investor Class Plan.

TABLE 4 - SHAREHOLDER SERVICE FEES

INSTITUTIONAL SHARES

For the fiscal year ended August 31, 1996, the fees paid to Forum under the
Shareholder Service Plan with respect to Institutional Shares were as follows.
All fees paid to Forum were paid to shareholder servicing agents.

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund $54,540 $24,768 $29,772
Government Cash Fund $378,006 $0 $378,006
Cash Fund $136,336 $14,708 $121,628
</TABLE>

C-2
<PAGE>

For the fiscal year ended August 31, 1995, the fees paid to Forum under the
Shareholder Service Plan with respect to Institutional Shares were as follows.
All fees paid to Forum were paid to shareholder servicing agents.
<TABLE>
<S> <C> <C> <C>
Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund $32,537 $18,345 $14,192
Government Cash Fund $240,423 $33,785 $206,638
Cash Fund $99,091 $15,852 $83,239

For the fiscal year ended August 31, 1994, the fees paid to Forum under the
Shareholder Service Plan with respect to Institutional Shares were as follows.
All fees paid to Forum were paid to shareholder servicing agents.

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund $68,638 $33,571 $36,067
Government Cash Fund $67,673 $23,374 $44,299
Cash Fund $60.434 $10,727 $49,707

INVESTOR SHARES

For the fiscal year ended August 31, 1996, the fees paid to Forum under the
Shareholder Service Plan with respect to Investor Shares were:

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund $3,053 $510 $2,543
Government Cash Fund $204 $5 $199
Cash Fund $22,404 $3,752 $18,652

For the fiscal year ended August 31, 1995, no Investor Shares of Treasury Cash
Fund or Government Cash Fund were outstanding and, accordingly, no fees were
payable under the Shareholder Service Plan with respect to Investor Shares of
those Funds. Fees paid to Forum under the Shareholder Service Plan with respect
to Investor Shares of Cash Fund were:

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Fund n/a n/a n/a
Government Cash Fund n/a n/a n/a
Cash Fund $342 $0 $342

For the fiscal year ended August 31, 1994, no Investor Shares were outstanding
and, accordingly, no fees were payable under the Shareholder Service Plan with
respect to Investor Shares.

TABLE 5 - FUND ACCOUNTING FEES

Prior to September 1, 1995, each Fund paid accounting fees directly.

For the fiscal year ended August 31, 1996, the fees payable by the Portfolios
under the Fund Accounting Agreement were:

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Portfolio $28,518 $2,259 $26,259
Government Cash Portfolio $42,000 $0 $42,000
Cash Portfolio $42,000 $2,259 $39,741
</TABLE>

C-3
<PAGE>

For the fiscal year ended August 31, 1995, the fees payable by the Funds under
the Transfer Agency and Fund Accounting Agreement for fund accounting services
were:
<TABLE>
<S> <C> <C> <C>
Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Portfolio $36,000 $0 $36,000
Government Cash Portfolio $43,000 $0 $432,000
Cash Portfolio $43,250 $0 $43,250

For the fiscal year ended August 31, 1994, the fees payable by the Funds under
the Transfer Agency and Fund Accounting Agreement for fund accounting services
were:

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Portfolio $28,518 $2,259 $26,259
Government Cash Portfolio $42,000 $0 $42,000
Cash Portfolio $42,000 $2,259 $39,741

Accrued Fee Fee Waived Fee Paid
----------- ---------- --------
Treasury Cash Portfolio $36,000 $0 $36,000
Government Cash Portfolio $50,000 $0 $50,000
Cash Portfolio $49,000 $0 $49,000
</TABLE>

TABLE 6 - 5% SHAREHOLDERS

As of December 26, 1996, the shareholders listed below owned of record 5% or
more of the outstanding shares of each class of shares of the Trust.
Shareholders beneficially owning 25% or more of the shares of the Fund or of the
Trust as a whole may be deemed to be controlling persons. By reason of their
substantial holdings of shares, these persons may be able to require the Trust
to hold a shareholder meeting to vote on certain issues and may be able to
determine the outcome of any shareholder vote. As noted, certain of these
shareholders are known to the Trust to hold their shares of record only and have
no beneficial interest, including the right to vote, in the shares.

As a percentage of all shares of the Trust outstanding, Imperial Trust Company
held of record for the benefit of its various customers 26.62% of the shares,
and Imperial Bancorp and its affiliates held 10.15% of the shares.
<TABLE>
<S> <C> <C> <C>
Percentage
TREASURY CASH FUND Percentage of Shares of
Institutional Shares Shareholders Shares Owned Fund Owned
--------------------------------- ------------ ----------
Imperial Trust Company (recordholder), Los Angeles, CA 74.73% 68.42%
Sullivan Kelley & Associates, Inc., Pasadena, CA 9.36% 8.57%

Percentage
TREASURY CASH FUND Percentage of Shares of
Investor Shares Shareholders Shares Owned Fund Owned
---------------------------- ------------ ----------
Imperial Bank, Inglewood, CA 80.60% ---

Percentage
GOVERNMENT CASH FUND Percentage of Shares of
Universal Shares Shareholders Shares Owned Fund Owned
----------------------------- ------------ ----------
County of Alameda, Oakland, CA 13.57% 5.70%
Dime Savings Bank, New York, NY 10.44% ---
Highland Federal Bank, Los Angeles, CA 7.83% ---
</TABLE>

C-4
<PAGE>
<TABLE>
<S> <C> <C> <C>
Superior Bank FSB, Oakbrook Terrace, IL 7.32% ---
Imperial Bancorp. Inglewood, CA 6.89% ---

Percentage
GOVERNMENT CASH FUND Percentage of Shares of
Institutional Shares Shareholders Shares Owned Fund Owned
--------------------------------- ------------ ----------
Imperial Trust Company (record holder), Los Angeles, CA 21.60% 12.54%
Phoenix Pictures, Inc., Culver City, CA 7.73% ---
Cinergi Pictures, Inc., Culver City, CA 6.61% ---
Megabios Corp., Burlingame, CA 5.14% ---
Live Film and Mediaworks, Inc., Van Nuys, CA 5.03% ---

Percentage
CASH FUND Percentage of Shares of
Universal Shares Shareholders Shares Owned Fund Owned
---------------------------- ------------ -----------
Imperial Bank, Inglewood, CA 100% 6.50%

Percentage
CASH FUND Percentage of Shares of
Institutional Shares Shareholders Shares Owned Fund Owned
--------------------------------- ------------ ----------
Imperial Trust Company (record holder), Los Angeles, CA 69.11% 49.98%
Tegal Corporation, Petaluma, CA 19.08% 13.80%

Percentage
CASH FUND Percentage of Shares of
Investor Shares Shareholders Shares Owned Fund Owned
---------------------------- ------------ ----------
Imperial Bank, Inglewood, CA 99.12% 21.00%

</TABLE>

C-5
<PAGE>

PART C
OTHER INFORMATION

ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS.

(A) FINANCIAL STATEMENTS.

Included in each Prospectus:

Financial Highlights.

Incorporated by Reference into the Statement of Additional Information:

Statements of Assets and Liabilities as of August 31, 1997,
Statements of Operations for the year ended August 31, 1997,
Statements of Changes in Net Assets for the years ended
August 31, 1995, 1996 and 1997, notes to the financial
statements; and the Independent Auditors' Report thereon,
were filed with the Securities and Exchange Commission on
November 3, 1997, accession number 0001047469-97-002432,
pursuant to Rule 30b2-1 under the Investment Company Act of
1940, as amended, and incorporated herein by reference.

(B) EXHIBITS.

(1) Copy of Trust Instrument (See Note A).

(2) Copy of Bylaws (See Note A).

(3) None.

(4) Form of Certificate for Shares (See Note C).

(5) Not applicable.

(6) Form of Distribution Agreement to be between the Registrant
and Forum Financial Services, Inc. (See Note B).

(7) None.

(8) Form of Custodian Agreement to be between the Registrant and
Imperial Trust Company (See Note C).

(9) (a) Form of Management Agreement to be between the
Registrant and Forum Financial Services, Inc.
(See Note B).

(b) Copy of Transfer Agency and Fund Accounting
Agreement between the Registrant and Forum
Financial Corp. (See Note E).

(10) Opinion of Kirkpatrick & Lockhart LLP (See Note C).

(11) None.

(12) None.

<PAGE>

(13) Investment Representation letter (See Note C).

(14) None.

(15) Copy of Rule 12b-1 Plan of the Registrant (See Note E).

(16) Schedule for Computation of Performance (See Note D).

(17) Not applicable.

(18) Not applicable.

Other Exhibits:

(A) Power of Attorney, Maurice J. DeWald, Trustee of the
Registrant (See Note C).

(B) Previously filed but no longer applicable to the
Registrant.

(D) Previously filed but no longer applicable to the
Registrant.

(E) Power of Attorney, John Y. Keffer, Trustee of the
Registrant (See Note C).

(F) Powers of Attorney, John Y. Keffer, James C. Cheng and J.
Michael Parish (See Note F).

(G) Powers of Attorney, Costas Azariadis (See Note F).

(H) Power of Attorney, Rudolph I. Estrada, Trustee of the
Registrant (See Note G).

(I) Power of Attorney, Robert M. Franko, Trustee of the
Registrant (See Note G).

Note A: Filed as an exhibit to the Registrant's Registration Statement on Form
N-1A, file number 33-49570 ("Registration Statement"), on July 10, 1992, and
incorporated herein by reference.

Note B: Filed as an exhibit to Pre-Effective Amendment No. 1 to the Registration
Statement on September 9, 1992, and incorporated herein by reference.

Note C: Filed as an exhibit to Pre-Effective Amendment No. 2 to the Registration
Statement on October 23, 1992, and incorporated herein by reference.

Note D: Filed as an exhibit to Post-Effective Amendment No. 1 to the
Registration Statement on May 3, 1993, and incorporated herein by reference.

Note E: Filed as an exhibit to Post-Effective Amendment No. 4 to the
Registration Statement on January 25, 1994, and incorporated herein by
reference.

Note F: Filed as an exhibit to Post-Effective Amendment No. 9 to the
Registration Statement on November 1, 1995, and incorporated herein by
reference.

Note G: Filed as an exhibit to Post-Effective Amendment No. 10 to the
Registration Statement on May 13, 1996, and incorporated herein by reference.

<PAGE>

ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.

Due to the ownership interest of Cash Fund, Government Cash Fund and
Treasury Cash Fund of Cash Portfolio, Government Cash Portfolio and Treasury
Cash Portfolio of Core Trust (Delaware), the Funds may be deemed to control
those portfolios.

ITEM 26. NUMBER OF HOLDERS OF SECURITIES AS OF NOVEMBER 3, 1997.
<TABLE>
<S> <C>
Title of Class of Shares
of Beneficial Interest Number of Holders
--------------------- -----------------
Cash Fund
Universal Class 2
Institutional Class 35
Investor Class 14
Government Cash Fund
Universal Class 36
Institutional Class 178
Investor Class 0
Treasury Cash Fund
Universal Class 0
Institutional Class 23
Investor Class 24
</TABLE>

ITEM 27. INDEMNIFICATION.

The Registrant's response to Item 27 of Post-Effective Amendment No. 4 to
Registration Statement on Form N-1A filed on January 15, 1994 (file number
33-49570) is incorporated herein by reference.

ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISERS.

FORUM INVESTMENT ADVISORS, LLC

The description of Forum Investment Advisors, LLC under the captions "Management
" and "Management - Adviser" in the Prospectus and Statement of Additional
Information, constituting certain of Parts A and B, respectively, of this
Registration Statement, are incorporated by reference herein.

The following are the members and officers of Forum Investment Advisors, LLC,
Two Portland Square, Portland, Maine 04101, including their business connections
which are of a substantial nature.

Forum Holdings Corp., Member.
Forum Financial Group, LLC, Member.

Both Forum Holdings Corp. and Forum Financial Group, LLC are
controlled by John Y. Keffer, Chairman and President of the
Registrant; President of Forum Financial Services, Inc. and of
Forum Financial Corp and their affiliates. Mr. Keffer is a
director and/or officer of various registered investment
companies for which Forum Financial Services, Inc. serves as
manager, administrator and/or distributor.

<PAGE>

William J. Lewis, Director.

Director of Forum Investment Advisors, LLC.

Sara M. Morris, Treasurer.

Chief Financial Officer, Forum Financial Services, Inc. Ms.
Morris serves as an officer of several other Forum affilated
companies. Ms. Morris also serves as an officer of various
registered investment companies for which Forum Financial
Services, Inc., serves as manager, administrator and/or
distributor.

David I. Goldstein, Secretary.

General Counsel, Forum Financial Group, LLC. Mr. Goldstein serves
as an officer of several other Forum affiliated companies. Mr.
Goldstein also serves as an officer of various registered
investment companies for which Forum Financial Services, Inc.
serves as manager, administrator and/or distributor.

Dana A. Lukens, Assistant Secretary.

Corporate Counsel, Forum Financial Group, LLC. Mr. Lukens also
serves as an officer of several other Forum affiliated companies.

Margaret J. Fenderson, Assistant Treasurer.

Corporate Accounting Manager, Forum Financial Group, LLC. Ms.
Fenderson also serves as an officer of several other Forum
affiliated companies.

ITEM 29. PRINCIPAL UNDERWRITERS.

(a) Forum Financial Services, Inc., Registrant's underwriter, serves as
underwriter to Core Trust (Delaware), The CRM Funds, The Cutler Trust, The
Highland Family of Funds, Norwest Advantage Funds, Norwest Select Funds and
Sound Shore Fund, Inc.

(b) John Y. Keffer, President and Secretary of Forum Financial Services, Inc.,
is the Chairman and President of Registrant. His business address is Two
Portland Square, Portland, Maine 04101.

ITEM 30. LOCATION OF BOOKS AND RECORDS.

The majority of the accounts, books and other documents required to be
maintained by Section 31(a) of the Investment Company Act of 1940 and the Rules
thereunder are maintained at the offices of Forum Financial Services, Inc., Two
Portland Square, Portland, Maine 04101, and Forum Financial Corp., Two Portland
Square, Portland, Maine 04101. The records required to be maintained under Rule
31a-1(b)(1) with respect to journals of receipts and deliveries of securities
and receipts and disbursements of cash are maintained at the offices of the
Registrant's custodian, as listed under "Custodian" in Part B to this
Registration Statement. The records required to be maintained under Rule
31a-1(b)(5), (6) and (9) are maintained at the offices of the Registrant's
adviser or subadviser, as listed in Item 28 hereof.

ITEM 31. MANAGEMENT SERVICES.

Not Applicable.

ITEM 32. UNDERTAKINGS.

Registrant undertakes to:

(i) contain in its Trust Instrument or Bylaws provisions for assisting
shareholder communications and for the removal of trustees substantially similar
to those provided for in Section 16(c) of the Investment Company Act of 1940,
except to the extent such provisions are mandatory or prohibited under
applicable Delaware law.

<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, Registrant has duly caused this amendment to its
Registration Statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the City of Portland and State of Maine on the 25th day of
November, 1997.

MONARCH FUNDS

By: /s/ John Y. Keffer
----------------------
John Y. Keffer
President

Pursuant to the requirements of the Securities Act of 1933, this amendment to
the Registration Statement has been signed below by the following persons on the
25th day of November, 1997.

SIGNATURES TITLE

(a) Principal Executive Officer

/s/ John Y. Keffer Chairman, President
------------------------
John Y. Keffer

(b) Principal Financial and Accounting Officer

/s/ Robert B. Campbell Treasurer
-------------------------
Robert B. Campbell

/s/ John Y. Keffer Trustee
------------------------
John Y. Keffer

Rudolph I. Estrada Trustee
Maurice J. DeWald Trustee
Robert M. Franko Trustee
Jack J. Singer Trustee

By: /s/ John Y. Keffer
---------------------------
John Y. Keffer
Attorney in Fact*

* Pursuant to powers of attorney filed as Exhibits A, C, H and I to the
Registrant's Registration Statement.

<PAGE>

SIGNATURES

On behalf of Core Trust (Delaware), being duly authorized, I have duly caused
this amendment to the Registration Statement of Monarch Funds to be signed in
the City of Portland, State of Maine on the 25th day of November, 1997.

CORE TRUST (DELAWARE)

By: /s/ John Y. Keffer
----------------------
John Y. Keffer
President

This amendment to the Registration Statement of Core Trust (Delaware) has been
signed below by the following persons in the capacities indicated on the 25th of
November, 1997.

SIGNATURES TITLE

(a) Principal Executive Officer

/s/ John Y. Keffer Chairman and
---------------------------- President
John Y. Keffer

(b) Principal Financial and
Accounting Officer

/s/ Robert B. Campbell Treasurer
-----------------------------
Robert B. Campbell

/s/ John Y. Keffer Chairman
-------------------------------
John Y. Keffer

Costas Azariadis Trustee
J. Michael Parish Trustee
James C. Cheng Trustee

By: /s/ John Y. Keffer
----------------------------------
John Y. Keffer*
Attorney in Fact

* Pursuant to powers of attorney filed as Exhibits F and G to this Registration
Statement.

<PAGE>

INDEX TO EXHIBITS

Sequential
Exhibit Page Number
- ------- -----------