SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-17F-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR 270.17f-2)
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1. Investment Company Act File Number: Date examination completed:
811-8858 October 31, 1998
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2. State identification Number:
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<S> <C> <C> <C> <C> <C>
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify):
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3. Exact name of investment company as specified in registration statement:
Core Trust (Delaware)
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4. Name under which business is conducted, if different from above:
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5.Address of principal place of business (number, street, city, state, zip
code): Two Portland Square, Portland, ME 04101
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the original
and one copy with the Securities and Exchange Commission's principal office in
Washington, D.C., one copy with the regional office for the region in which the
investment company's principal business operations are conducted, and one copy
with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
Note: The estimated average burden hours are made solely for purposes of the
Paperwork Reduction Act, and are not derived from a Comprehensive or even a
representative survey or study of the costs of SEC rules and forms. Direct any
comments concerning the accuracy of the estimated average burden hours for
compliance with SEC rules and form to Kenneth A. Fogash, Deputy Executive
Director, U.S. Securities and Exchange Commission, 450 Fifth St., N.W.,
Washington, D.C. 20549 and Gary Waxman, Clearance Officer, Office of Management
and Budget, Room 3208, New Executive Office Building, Washington, D.C. 20503.
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INDEPENDENT AUDITORS' REPORT
To the Board of Trustees of
Core Trust (Delaware)
and
Securities and Exchange Commission:
We have examined management's assertion, included in its representation letter,
that Prime Money Market Portfolio, Money Market Portfolio, Stable Income
Portfolio, Managed Fixed Income Portfolio, Positive Return Bond Portfolio,
Strategic Value Bond Portfolio, Income Equity Portfolio, Large Company Growth
Portfolio, Disciplined Growth Portfolio, Small Cap Index Portfolio, Small
Company Growth Portfolio, Small Company Stock Portfolio, Small Company Value
Portfolio, Small Cap Value Portfolio, Index Portfolio, and International
Portfolio of Core Trust (Delaware) (the Portfolios), complied with the
provisions of subsections (b) and (c) of Rule 17f-2 under the Investment Company
Act of 1940 as of October 31, 1998. Management is responsible for the
Portfolios' compliance with those provisions. Our responsibility is to express
an opinion on management's assertion about the Portfolios' compliance based on
our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Portfolios' compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of October 31, 1998, with respect to securities transactions,
without prior notice to management:
(1) Inspection of documentation of all securities located in the vault, if any,
of Norwest Bank Minneapolis, N.A., the Custodian;
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(2) Confirmation of securities held in book entry form by Participant Trust
Company, Bankers Trust Company, Morgan Stanley Trust Company, Depository
Trust Company, and the Federal Reserve Bank and examination of selected
security position reconciliations;
(3) Inspection of documentation of other securities held in safekeeping
by the Custodian but not included in (1) or (2) above and examination of
selected security position reconciliations;
(4) Confirmation or inspection of documentation of all securities purchased but
not received, hypothecated, pledged, placed in escrow, or out for transfer
with brokers, pledgees and/or transfer agents;
(5) Reconciliation of all such securities to the books and records of the
Portfolios and the Custodian; and
(6) Tests of selected security transactions since the date of our last report.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Portfolios' compliance
with the specified requirements.
In our opinion, management's assertion that Core Trust (Delaware) was in
compliance with the above mentioned provisions of Rule 17f-2 of the Investment
Company Act of 1940 as of October 31, 1998, is fairly stated in all material
respects.
This report is intended solely for the information and use of management of Core
Trust (Delaware) and the Securities and Exchange Commission and should not be
used for any other purpose.
Boston, Massachusetts
December 4, 1998
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[Logo] Norwest Banks Norwest Bank Minnesota, N.A.
Norwest Center
Sixth and Marquette
Minneapolis, Minnesota 55479-0001
612/667-1234
December 4, 1998
KPMG Peat Marwick LLP
99 High Street
Boston, MA 02110-2371
RE: Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940.
Ladies and Gentlemen:
Norwest Bank Minnesota, N.A., as investment manager for Prime Money Market
Portfolio, Money Market Portfolio, Stable Income Portfolio, Managed Fixed Income
Portfolio, Positive Return Bond Portfolio, Strategic Value Bond Portfolio, Index
Portfolio, Income Equity Portfolio, Large Company Growth Portfolio, Disciplined
Growth Portfolio, Small Company Growth Portfolio, Small Company Stock Portfolio,
Small Company Value Portfolio, Small Cap Value Portfolio, Small Cap Index
Portfolio, and International Portfolio of Core Trust (Delaware), is responsible
for complying with the requirement of subsections (b) and (c) or Rule 17f-2,
"Custody of Investments of Registered Management Investment Companies," of the
Investment Company Act of 1940. It is also responsible for establishing and
maintaining an effective internal control structure over compliance with Rule
17f02 requirements.
Norwest Bank, Minnesota, N.A. has performed an evaluation of the Core Trust
(Delaware) Portfolios' compliance with the requirements of subsections (b) and
(c) of Rule 17f-2 as of October 31, 1998. Based on this evaluation, it has been
determined that the Core Trust (Delaware) Portfolios were in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of October 31, 1998, with respect to securities reflected in the
investment accounts of the Norwest Advantage Funds.
Sincerely,
Norwest Bank Minnesota, N.A>
Carol Warner, Senior Vice President
Trust Operations & Technology
