FUND PORTFOLIOS
FINANCIAL INFORMATION
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
PRESIDENT'S MESSAGE
The March 1997 Fed Rate Increase
Impacted the Portfolios' Performance
[PHOTO - COMPOSITE GROUP PRESIDENT, WILLIAM G. PAPESH]
On March 25, 1997, the Federal Reserve Board increased the target fed funds
rate, the rate at which banks borrow from each other to meet their reserve
requirements, from 5.25% to 5.50%. The increase was based on their concern about
persistent strength in demand that would progressively increase the risk of
inflation. Banks then followed suit and increased their prime lending rate from
8.25% to 8.50%. The Fed rate increase was the first action since a cut in the
fed funds target rate by a quarter of a percentage point on January 31, 1996.
In anticipation of the Fed rate action, the short-end of the yield curve
steepened and the benchmark 90-day U.S. Treasury bill rate rose to 5.40% on
March 21, 1997, but then declined to 5.17% at June 30, 1997. The decline in the
90-day Treasury bill yield reflects positive economic data that has alleviated
investors' fears about inflation. Economic data released for the second quarter
of 1997 shows a continuation of the current economic expansion but at a slower
pace, and with very little inflation pressure. The market does not anticipate
additional Fed rate increases before September 1997.
Portfolios' Performance
Based primarily on the Fed's March action, performance of our two port-
folios increased slightly. At June 30, 1997, the seven-day simple yield for
Class A shares of the Money Market Portfolio was 4.99%, or 5.12% on a compounded
annual basis. Securities in the Money Market Portfolio had a weighted average
maturity of 43 days.
The seven-day simple yield for Class A shares of the Tax-Exempt Portfolio
was 3.44%, or 3.50% on a compounded annual basis. Securities in the Tax-Exempt
Portfolio had a weighted average maturity of 51 days.i
The Funds' adviser, distributor, and transfer agent waived or reimbursed a
portion of the expenses of both portfolios. Without the waivers and
reimbursements, the seven-day simple yield for Class A shares would have been
4.89% for the Money Market Portfolio, and 3.31% for the Tax-Exempt Portfolio.ii
We Appreciate Your Business And Your Trust
We will strive to continue to earn the trust you have placed in us by
pursuing income consistent with preservation of assets and maintenance of
liquidity. Your investment in Composite Cash Management Co. is very much
appreciated.
/s/ William G. Papesh
WILLIAM G. PAPESH
PRESIDENT
i ALL YIELD INFORMATION REPRESENTS PAST PERFORMANCE, WHICH CANNOT GUARANTEE
FUTURE RESULTS. PRINCIPAL IS NOT GUARANTEED OR INSURED BY THE U.S. GOVERNMENT,
AND YIELDS WILL FLUCTUATE DEPENDING ON MARKET CONDITIONS. THERE IS NO ASSURANCE
THAT THE PORTFOLIOS WILL MAINTAIN THE $1.00 PER SHARE NET ASSET VALUE ("NAV").
ii CLASS B SHARES ARE AVAILABLE ONLY BY EXCHANGING THE B SHARES FROM OTHER
COMPOSITE GROUP FUNDS AND ARE INTENDED AS TEMPORARY INVESTMENTS. THE SEVEN-DAY
SIMPLE YIELD, AFTER EXPENSE REIMBURSEMENT, FOR THE CLASS B SHARES THROUGH JUNE
30, 1997, WAS 4.13% FOR THE MONEY MARKET PORTFOLIO AND 2.53% FOR THE TAX-EXEMPT
PORTFOLIO. THE ALTERNATIVE MINIMUM TAX, AS WELL AS STATE AND LOCAL TAXES, MAY
APPLY TO INCOME DISTRIBUTED BY THE TAX-EXEMPT PORTFOLIO.
<PAGE>
<TABLE>
<CAPTION>
COMPOSITE
CASH MANAGEMENT
COMPANY
PORTFOLIO OF
INVESTMENTS IN SECURITIES
JUNE 30, 1997
MONEY MARKET PORTFOLIO (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
----------- ----------
SHORT-TERM INVESTMENTS
BANKERS ACCEPTANCES-2.33%
<S> <C> <C>
$ 3,000,000 Chase Manhattan Bank NA New York, 5.56%, due 07/14/1997.... $ 2,993,977
3,000,000 Chase Manhattan Bank NA New York, 5.60%, due 08/19/1997.... 2,977,133
------------
TOTAL BANKERS ACCEPTANCE (cost $5,971,110)................. 5,971,110
------------
CERTIFICATE OF DEPOSIT - DOMESTIC-1.95%
5,000,000 Bankers Trust New York Corporation, 5.70%, due 07/10/1997.. 5,000,019
------------
TOTAL CERTIFICATE OF DEPOSIT - DOMESTIC (cost $5,000,019).. 5,000,019
------------
CERTIFICATES OF DEPOSIT - FOREIGN-6.63%
5,000,000 Australia & New Zealand Bank, 5.70%, due 07/07/1997........ 5,000,005
5,000,000 Societe Generale New York Branch, 5.50%, due 08/07/1997.... 5,000,050
7,000,000 Westdeutsche Landesbank Girozentrale, 5.52%,
due 07/07/1997............................................. 7,000,118
------------
TOTAL CERTIFICATES OF DEPOSIT-FOREIGN (cost $17,000,173)... 17,000,173
------------
COMMERCIAL PAPER - DOMESTIC-50.88%
5,000,000 American Express Credit Corporation, 5.54%,
due 08/04/1997........................................... 4,973,839
5,000,000 BT Securities Corporation, 5.65%, due 07/11/1997........... 4,992,153
5,000,000 Bank of New York Company, Inc., 5.535%, due 07/22/1997..... 4,983,856
5,000,000 Bear Stearns Company, Inc., 5.60%, due 08/11/1997.......... 4,968,111
5,000,000 Bear Stearns Company, Inc., 5.60%, due 08/15/1997.......... 4,965,000
5,000,000 Beneficial Corporation, 5.61%, due 07/01/1997.............. 5,000,000
2,500,000 Beneficial Corporation, 5.56%, due 07/28/1997.............. 2,489,575
5,000,000 Chrysler Financial Corporation, 5.58%, due 08/12/1997...... 4,967,450
5,000,000 John Deere Capital Corporation, 5.61%, due 07/07/1997...... 4,995,325
5,000,000 Ford Motor Credit Company, 5.60%, due 07/08/1997........... 4,994,556
4,000,000 Ford Motor Credit Company, 5.55%, due 08/25/1997........... 3,966,083
5,000,000 General Electric Capital Corporation, 5.62%,
due 07/07/1997........................................... 4,995,317
5,000,000 General Electric Capital Corporation, 5.63%,
due 07/07/1997........................................... 4,995,308
3,000,000 General Motors Acceptance Corporation, 5.59%,
due 07/03/1997........................................... 2,999,068
4,500,000 General Motors Acceptance Corporation, 5.44%,
due 07/14/1997........................................... 4,491,160
4,000,000 Goldman Sachs Group L.P., 6.15%, due 07/01/1997............ 4,000,000
5,000,000 Goldman Sachs Group L.P., 5.60%, due 09/03/1997............ 4,950,222
3,000,000 IBM Corporation, 5.56%, due 08/05/1997..................... 2,983,783
5,000,000 IBM Corporation, 5.55%, due 08/25/1997..................... 4,957,604
4,300,000 International Lease Finance Corporation, 5.55%,
due 08/11/1997........................................... 4,272,820
2,600,000 International Lease Finance Corporation, 5.58%,
due 09/03/1997........................................... 2,574,208
4,000,000 Merrill Lynch and Company, 5.58%, due 07/16/1997........... 3,990,700
5,000,000 Merrill Lynch and Company, 5.58%, due 08/08/1997........... 4,970,550
2,000,000 Merrill Lynch and Company, 5.62%, due 08/08/1997........... 1,988,136
5,000,000 Morgan Stanley Group Inc., 5.57%, due 07/21/1997........... 4,984,528
5,000,000 Morgan Stanley Group Inc., 5.61%, due 08/25/1997........... 4,957,146
2,114,000 Nebraska Higher Education Loan Program, 5.55%,
due 07/24/1997........................................... 2,106,504
5,000,000 Oyster Creek Fuel Corporation, 5.55%, due 07/09/1997....... 4,993,833
5,000,000 Sears Roebuck Acceptance Corporation, 5.63%,
due 07/07/1997........................................... 4,995,308
5,000,000 Sears Roebuck Acceptance Corporation, 5.58%,
due 07/23/1997........................................... 4,982,950
------------
TOTAL COMMERCIAL PAPER - DOMESTIC (cost $130,485,093)...... 130,485,093
------------
COMMERCIAL PAPER - FOREIGN-25.52%
5,000,000 American Honda Finance Corporation, Inc., 5.57%,
due 07/21/1997........................................... 4,984,528
2,500,000 American Honda Finance Corporation, Inc., 5.57%,
due 07/25/1997........................................... 2,490,717
4,000,000 BHP Finance (USA) Inc., 5.55%, due 07/08/1997.............. 3,995,683
1,700,000 BHP Finance (USA) Inc., 5.55%, due 07/09/1997.............. 1,697,903
5,000,000 Eksportfinans A/S, 5.56%, due 07/31/1997................... 4,976,833
2,500,000 Eksportfinans A/S, 5.60%, due 08/21/1997................... 2,480,167
6,000,000 Hitachi America, Limited, 5.55%, due 08/18/1997............ 5,955,600
5,000,000 Hitachi America, Limited, 5.57%, due 10/16/1997............ 4,917,224
5,000,000 Pemex Capital, Inc. - Series B, 5.55%, due 09/17/1997...... 4,939,875
5,000,000 Rank Xerox Capital (Europe) PLC, 5.55%, due 07/17/1997..... 4,987,667
2,000,000 Sharp Electronics Corporation, 5.60%, due 07/03/1997....... 1,999,378
5,000,000 Sharp Electronics Corporation, 5.55%, due 08/15/1997....... 4,965,313
1,100,000 Toshiba Capital (Asia) Limited, 5.63%, due 08/14/1997...... 1,092,431
4,625,000 Toshiba International Finance (UK) PLC, 5.72%,
due 08/04/1997........................................... 4,600,015
4,000,000 Toshiba International Finance (UK) PLC, 5.76%,
due 08/28/1997........................................... 3,962,880
2,500,000 Toshiba International Finance (UK) PLC, 5.60%,
due 10/07/1997........................................... 2,461,889
5,000,000 Toyota Motor Credit Corporation, 5.54%, due 09/16/1997..... 4,940,753
------------
TOTAL COMMERCIAL PAPER - FOREIGN (cost $65,448,856)........ 65,448,856
-------------
CORPORATE NOTES AND BONDS-9.22%
5,000,000 American Express Centurian Bank, 5.6575%, due 07/03/1998*.. 5,000,000
3,500,000 Caterpillar Financial Services Corporation, 7.24%,
due 12/15/1997........................................... 3,520,155
2,000,000 Dean Witter Discover Company, 5.6375%, due 07/16/1997*..... 2,000,000
2,000,000 General Motors Acceptance Corporation, 5.62%,
due 07/01/1997*.......................................... 2,000,732
1,000,000 General Motors Acceptance Corporation, 6.75%,
due 07/10/1997........................................... 1,000,262
1,500,000 General Motors Acceptance Corporation, 5.75%,
due 10/08/1997........................................... 1,498,835
1,400,000 Household Finance Corporation, 6.70%, due 08/08/1997....... 1,401,388
4,200,000 IBM Corporation, 6.375%, due 11/01/1997.................... 4,210,012
1,000,000 Tonkin Building Associates LLC, 5.64%, due 07/02/1997*..... 1,000,000
2,000,000 Watts Brothers Frozen Foods LLC, 5.64%, due 07/02/1997*.... 2,000,000
------------
TOTAL CORPORATE NOTES AND BONDS (cost $23,631,384)......... 23,631,384
------------
FEDERAL AGENCY OBLIGATIONS-4.48%
2,500,000 Federal Farm Credit Bank, 5.4975%, due 07/17/1997*......... 2,499,185
1,000,000 Federal Home Loan Bank, 5.528%, due 07/19/1997*............ 999,674
1,000,000 Federal Home Loan Bank, 5.528%, due 07/28/1997*............ 999,900
4,000,000 Federal Home Loan Bank, 5.67%, due 03/05/1998.............. 4,000,000
3,000,000 Federal Home Loan Bank, 5.91%, due 03/24/1998.............. 3,000,000
------------
TOTAL FEDERAL AGENCY OBLIGATIONS (cost $11,498,759)........ 11,498,759
------------
REPURCHASE AGREEMENT-0.69%
1,783,000 Repurchase agreement with Goldman Sachs and Company,
collateralized by a U.S. Treasury Note, in a joint trading
account at 5.75%, dated 06/30/1997, due 07/01/1997 with a
maturity value of $1,783,285 (cost $1,783,000)............. 1,783,000
------------
TOTAL INVESTMENTS (cost $260,818,394)...................... 260,818,394
Other assets net of liabilities............................ (4,379,847)
------------
NET ASSETS................................................. $256,438,547
============
*Floating Rate Note. The interest rate is subject to change periodically, based
on a market interest rate index.
FEDERAL INCOME TAX INFORMATION:
The aggregate cost of investments owned at June 30, 1997, for federal income tax
and financial reporting purposes was $260,818,394.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAX-EXEMPT PORTFOLIO (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -----------
SHORT-TERM INVESTMENTS
STATE AND MUNICIPAL SECURITIES-100.49%
BONDS-24.65%
<S> <C> <C>
$ 250,000 Adams County, CO, School District #012 Unlimited Tax
General Obligation, 4.125%, due 12/15/1997............... $ 250,583
400,000 Anchorage, AK, Tax Anticipation Notes, Unlimited Tax
General Obligation, 4.00%, due 12/17/1997................ 400,168
300,000 Cleveland, OH, Limited Tax General Obligation, Series B,
5.90%, due 10/01/1997.................................... 301,713
240,000 Connecticut State Special Assessment Unemployment Fund,
Series A, 4.10%, due 11/15/1997.......................... 240,449
500,000 Dallas, TX, Limited Tax General Obligation, 6.875%,
due 02/15/1998........................................... 509,606
200,000 East Williston, NY, Union Free School District Unlimited
Tax General Obligation, 6.625%, due 07/15/1997........... 200,228
100,000 Georgia State Unlimited Tax General Obligation,
Series C, 4.90%, due 08/01/1997.......................... 100,112
200,000 Georgia State Unlimited Tax General Obligation,
Series F, 6.50%, due 12/01/1997.......................... 202,376
300,000 Houston, TX, Water and Sewer System Junior Lien,
Series B, 6.75%, due 12/01/1997.......................... 303,858
600,000 Illinois State Unlimited Tax General Obligation, 5.25%,
due 10/01/1997........................................... 602,024
500,000 Intermountain Power Agency, Utah Power Supply Revenue
Bond, Series E, 3.50%, PUT date 09/15/1997............... 500,000
225,000 King County, WA, Unlimited Tax General Obligation,
4.60%, due 12/01/1997.................................... 225,714
500,000 Memphis, TN, Refunding Series 92, 5.10%, due 09/01/1997.... 501,093
200,000 New Jersey State Educational Facilities Authority
(Princeton University) Revenue, Series A, 6.25%,
due 07/01/1997........................................... 200,000
500,000 Oregon State Department of General Services, Series E,
6.50%, due 09/01/1997.................................... 502,368
155,000 St. Augustine, FL, Water and Sewer Revenue, 3.80%,
due 10/01/1997........................................... 155,075
415,000 Snohomish County, WA, Everett School District #2, Unlimited
Tax General Obligation, 3.60%, due 02/01/1998............ 415,000
255,000 Soos Creek, WA, Water and Sewer Refunding, Series D,
7.10%, due 02/01/1998.................................... 259,965
200,000 Sparks, NV, Limited Tax General Obligation, 4.00%,
due 09/01/1997........................................... 200,114
500,000 Texas State Tax Revenue Anticipation Notes, Unlimited Tax
General Obligation, 4.75%, due 08/29/1997................ 500,661
500,000 Trustees of Purdue University Certificates of
Participation - 1996, 3.75%, due 07/01/1997.............. 500,000
100,000 State of Washington Unlimited Tax General Obligation,
Series R, 1994-A, 3.90%, due 08/01/1997.................. 100,017
170,000 Waynesboro, GA, HEW Public Housing Authority,
3.50%, due 08/01/1997.................................... 169,958
400,000 Wisconsin State Health and Education Authority (Sisters of
the Sorrowful Mother), Series A, 3.55%, due 08/15/1997... 400,000
------------
7,741,082
------------
REFUNDED BONDS-18.42%
100,000 Chatham County, GA, School District, 5.60%,
due 08/01/1997, Escrowed to Maturity..................... 100,164
500,000 Emerald, OR, Peoples Utility District Revenue,
7.50%, due 11/01/1997, Pre-refunded at 100............... 506,405
250,000 Homestead, FL, Special Assessment Revenue,
4.40%, due 09/01/1997, Escrowed to Maturity.............. 250,236
140,000 Illinois State Health Facilities Revenue (Franciscan
Sisters), 7.875%, due 09/01/1997, Pre-refunded at 100.... 143,771
250,000 Kendall, Kane and Will Counties, GA, Community Unit School
District, 6.90%, due 12/01/1997, Pre-refunded at 100..... 253,198
400,000 Maricopa County, AZ, Community College District Revenue,
Junior Lien, 6.90%, due 07/15/1997, Pre-refunded
at 101.5................................................. 406,499
100,000 Missouri State Refunding (Third State Building),
6.50%, due 08/01/1997, Pre-refunded at 102............... 102,214
300,000 Multnomah County, OR, Certificates of Participation,
6.85%, due 07/15/1997, Escrowed to Maturity.............. 300,350
300,000 Oregon State Building Unlimited Tax General Obligation,
Series A, 7.45%, due 10/01/1997, Escrowed to Maturity.... 302,680
100,000 Pasco County, FL, Optional Gas Tax Revenue,
7.25%, due 08/01/1997, Pre-refunded at 102............... 102,295
500,000 Portland, OR, Urban Renewal and Downtown Waterfront Tax
Allocation, Series H, 8.25%, due 12/01/1997,
Pre-refunded at 100...................................... 509,464
150,000 Pulaski County, AR, Health Facilities Board,
6.25%, due 09/01/1997, Escrowed to Maturity.............. 150,627
100,000 St. Johns County, FL, Unlimited Tax General Obligation,
6.90%, due 12/01/1997, Pre-refunded at 102............... 103,147
330,000 Tampa, FL, Utility Tax Special Refunding,
8.125%, due 10/01/1997, Pre-refunded at 102.............. 340,009
170,000 Tarrant County, TX, Health Facilities, 6.875%,
due 09/01/1997, Pre-refunded at 102...................... 174,281
1,000,000 Texas State Public Finance Authority,
6.80%, due 02/01/1998, Escrowed to Maturity.............. 1,017,317
500,000 Washington County, OR, School District #48J (Beaverton),
Unlimited Tax General Obligation, 7.40%,
due 06/01/1998, Pre-refunded at 100...................... 514,057
500,000 Washington State Unlimited Tax General Obligation,
8.90%, due 10/01/1997, Pre-refunded at 100............... 506,342
------------
5,783,056
------------
VARIABLE RATE DEMAND OBLIGATIONS-57.42%*
500,000 Alabama State Special Care Authority Facilities Financing
(Montgomery Hospital Depreciable Assets), 4.15%,
due 04/01/2015........................................... 500,000
300,000 Arizona State Health Facilities Authority Revenue
(Pooled Loan Program), 4.20%, due 10/01/2015............. 300,000
500,000 Athens, AL, Industrial Development Board (Coilplus, Inc.
Project), Series 1984, 4.35%, due 09/19/1999............. 500,000
300,000 Austin County, TX, Industrial Development Corporation
(Justin Industries, Inc. Project), 4.20%,
due 12/01/2014........................................... 300,000
500,000 Brazos River, TX, Pollution Control Revenue (Monsanto
Company Project), 4.15%, due 11/01/2000**................ 500,000
500,000 Brazos River, TX, Pollution Control Revenue (Monsanto
Company Project), 4.25%, due 02/01/2004**................ 500,000
500,000 Chicago O'Hare International Airport General Airport
Second Lien Revenue, Series B, 4.20%, due 01/01/2015..... 500,000
500,000 Florida State Housing Finance Authority, Multifamily
Housing (Village Place), 4.20%, due 11/01/2007........... 500,000
400,000 Florida State Housing Finance Authority, Multifamily
Housing (Oak Mill), 4.20%, due 11/01/2007................ 400,000
200,000 Grapevine, TX, Industrial Development Council
(American Airlines) 4.10%, due 12/01/2024................ 200,000
700,000 Hawaii State Housing Finance & Development Corp. (Rental
Housing System), Series A, 4.30%, due 07/01/2025......... 700,000
200,000 Illinois State Development Finance Authority (Urlich
Children's Home Project), 4.20%, due 04/01/2007.......... 200,000
500,000 Illinois State Development Finance Authority (Urlich
Children's Home Project), 4.20%, due 06/01/2015.......... 500,000
400,000 Illinois State Health Facility (Bensenville Home Society),
Series A, 4.20%, due 02/15/2019.......................... 400,000
400,000 Illinois State Health Facility (Hospital Sisters Services),
Series E, 4.15%, due 12/01/2014.......................... 400,000
900,000 Illinois State Health Facility (Hospital Sisters Services),
Series E, 4.15%, due 12/01/2015.......................... 900,000
300,000 Indiana State Hospital Equipment Finance Authority
Variable Insured, Series A, 4.25%, due 12/01/2015........ 300,000
1,300,000 Indianapolis, IN, Multifamily Housing Revenue
(Canal Square Project), 4.15%, due 12/01/2015............ 1,300,000
500,000 Los Angeles Regional Airport (American Airlines/
LA International), 4.10%, due 12/01/2024**............... 500,000
500,000 Lower Neches Valley Authority, TX (Neches River Treatment
Project), 4.15%, due 02/01/2004 (Guaranteed by
Mobil Corp.)**........................................... 500,000
400,000 Metro Government Nashville/Davidson County, TN, Airport
Authority, Special Facilities Revenue Bond (American
Airlines Project), Series A, 4.00%, due 10/01/2012....... 400,000
500,000 Metro Government Nashville/Davidson County, TN,
Industrial Development Multifamily Housing Revenue
(Chimneytop II), 4.20%, due 09/01/2006................... 500,000
300,000 Michigan State Job Development Authority Revenue
(East Lansing Residence), 3.75%, due 12/01/2014.......... 300,000
200,000 Michigan State Job Development Authority Revenue
(Kentwood Residence), 3.75%, due 11/01/2014.............. 200,000
600,000 Michigan State Hospital Finance Authority
(Equipment Loan Program), 4.30%, due 12/01/2023.......... 600,000
800,000 Michigan State Hospital Finance Authority (Equipment
Loan Program), Series A, 4.30%, due 12/01/2023........... 800,000
500,000 Oregon State Veteran's Welfare Unlimited Tax General
Obligation, Series 73E, 4.20% due 12/01/2016............. 500,000
200,000 Pima County, AZ, Industrial Development Authority Revenue
(Tucson Electric), Series A, 4.15%, due 06/15/2022**..... 200,000
1,000,000 Richland, WA, Golf Enterprise Revenue, 4.20%,
due 12/01/2021........................................... 1,000,000
1,430,000 Seattle, WA, Housing Authority Low Income Housing
Assistance Revenue (Bayview Manor Project), Series B,
4.10% due 05/01/2019..................................... 1,430,000
500,000 Washington County, PA, Lease Revenue, Higher Education
(Pooled Equipment Lease 1985-A), 4.20%, due 11/01/2005... 500,000
700,000 Wisconsin State Health and Educational Facilities
Authority (SSM Health Care Project), Series A, Revenue,
4.10% due 06/01/2006..................................... 700,000
200,000 Wisconsin State Health and Educational Facilities
Authority (Franciscan Health Services, Inc.), Series A2,
4.15%, due 01/01/2016.................................... 200,000
300,000 Wisconsin State Health and Educational Facilities
Authority (Wheaton Franciscan Services, Inc.),
Series 1997, 4.20% due 08/15/2016........................ 300,000
500,000 Wood Dale, IL, Industrial Development Revenue Bond (Nippon
Express USA, Inc. Project), 4.35%, due 06/01/2000........ 500,000
------------
18,030,000
------------
TOTAL STATE AND MUNICIPAL SECURITIES (cost $31,554,138).... 31,554,138
------------
OTHER INVESTMENT-0.95%
297,000 Nuveen Tax-Exempt Money Market Fund, 3.56%
(cost $297,000).......................................... 297,000
------------
TOTAL SHORT-TERM INVESTMENTS (cost $31,851,138)............ 31,851,138
Other assets net of liabilities............................ (452,262)
------------
NET ASSETS................................................. $ 31,398,876
============
*Variable Rate Demand Obligations ("VRDOs") are payable on demand and secured by letters
of credit, liquidity agreements and other credit support. The interest rate is subject
to change periodically, and is based on an index of market interest rates.
**Obligations of various corporations and are not supported by other third party
credit agreements.
FEDERAL INCOME TAX INFORMATION:
The aggregate cost of investments owned at June 30, 1997, for federal income tax
and financial reporting purposes was $31,851,138.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
COMPOSITE CASH
MANAGEMENT COMPANY
FINANCIAL INFORMATION
JUNE 30, 1997
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
MONEY
MARKET TAX-EXEMPT
PORTFOLIO PORTFOLIO
--------- ----------
<S> <C> <C>
ASSETS
Investments at value (identified cost $260,818,394
and $31,851,138, respectively).............................. $260,818,394 $ 31,851,138
Cash.......................................................... 306,149 110,026
Prepaid expenses.............................................. 22,284 4,813
Receivable for:
Sale of Fund shares......................................... 2,669,482 270,450
Interest.................................................... 789,241 302,930
------------ ------------
Total assets.................................................. 264,605,550 32,539,357
------------ ------------
LIABILITIES
Payable for:
Investment securities purchased............................. 4,970,550 346,787
Repurchase of Fund shares................................... 3,088,451 785,221
Accrued expenses and other payables......................... 108,002 8,473
------------ ------------
Total liabilities............................................. 8,167,003 1,140,481
------------ ------------
NET ASSETS.................................................... $256,438,547 $ 31,398,876
============ ============
COMPOSITION OF NET ASSETS
Capital Stock, at par......................................... $ 25,644 $ 3,140
Additional paid-in capital.................................... 256,412,903 31,395,736
------------ ------------
$256,438,547 $ 31,398,876
============ ============
SHARES OUTSTANDING............................................ 256,438,547 31,398,876
============ ============
CLASS A SHARES:
Net asset value, offering price, and redemption price per share
(net assets of $256,221,535 and $31,386,523 for 256,221,535
and 31,386,523 shares outstanding, respectively).......... $1.00 $1.00
CLASS B SHARES: ============ ============
Net asset value, offering price, and redemption price per share
(net assets of $217,012 and $12,353 for 217,012 and
12,353 shares outstanding, respectively).................. $1.00 $1.00
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
MONEY
MARKET TAX-EXEMPT
PORTFOLIO PORTFOLIO
--------- ----------
<S> <C> <C>
INVESTMENT INCOME
Interest income............................................. $6,747,798 $587,501
---------- ---------
Expenses:
Management fees............................................. 543,906 71,755
Distribution expenses - Class A............................. 11,581 -
Distribution expenses - Class B............................. 614 28
Shareholder servicing - Class A............................. 247,138 13,733
Shareholder servicing - Class B............................. 179 27
Registration and filing fees................................ 95,572 10,573
Postage, printing and office expenses....................... 94,773 6,402
Custodial fees.............................................. 46,057 6,745
Directors' fees............................................. 5,057 5,057
Auditing and legal fees..................................... 5,541 3,519
Insurance................................................... 2,286 834
Expense reimbursement....................................... (113,150) (26,660)
---------- ---------
Total expenses................................................ 939,554 92,013
Fees paid indirectly.......................................... (29,327) (3,612)
---------- ---------
Net expenses.................................................. 910,227 88,401
---------- ---------
Net investment income......................................... 5,837,571 499,100
---------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .................................... $5,837,571 $499,100
=========== =========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
MONEY MARKET TAX-EXEMPT
PORTFOLIO PORTFOLIO
------------------------- --------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income.................................. $ 5,837,571 $ 9,711,582 $ 499,100 $ 946,958
------------ ------------ ------------ -----------
Net increase in net assets resulting from operations... 5,837,571 9,711,582 499,100 946,958
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income
Class A.............................................. (5,835,076) (9,706,992) (499,031) (946,927)
Class B.............................................. (2,495) (4,590) (69) (31)
NET CAPITAL SHARE TRANSACTIONS
Class A.............................................. 26,866,227 58,129,940 (587,415) 986,131
Class B.............................................. 100,063 42,492 10,149 1,172
------------ ------------ ------------ -----------
Total increase (decrease) in net assets................ 26,966,290 58,172,432 (577,266) 987,303
NET ASSETS
Beginning of the period................................ 229,472,257 171,299,825 31,976,142 30,988,839
------------ ------------ ----------- -----------
End of the period...................................... $256,438,547 $229,472,257 $31,398,876 $31,976,142
============ ============ =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
MONEY MARKET PORTFOLIO
CLASS A SIX MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
1997 --------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ......... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
INCOME FROM INVESTMENT OPERATIONS -------- ------- ------- ------- ------- -------
Net investment income...................... 0.0239 0.0476 0.0519 0.0341 0.0238 0.0302
-------- ------- ------- ------- ------- -------
Total from investment operations......... 0.0239 0.0476 0.0519 0.0341 0.0238 0.0302
-------- ------- ------- ------- ------- -------
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income........ (0.0239) (0.0476) (0.0519) (0.0341) (0.0238) (0.0302)
-------- ------- ------- ------- ------- -------
Total dividends to shareholders.......... (0.0239) (0.0476) (0.0519) (0.0341) (0.0238) (0.0302)
-------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ............... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======== ======= ======= ======= ======= =======
TOTAL RETURN ................................. 4.95%(3) 4.88% 5.33% 3.47% 2.41% 3.07%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period ($1,000's)......... $256,222 $229,355 $171,225 $125,651 $135,187 $141,193
Ratio of expenses to average net assets (1).. 0.78%(3) 0.79% 0.92% 0.95% 0.97% 0.88%
Ratio of net income to average net assets.... 4.83%(3) 4.77% 5.19% 3.39% 2.38% 3.04%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
SIX MONTHS
ENDED MAY 2
JUNE 30, YEARS ENDED TO
1997 DECEMBER 31, DEC. 31,
(UNAUDITED) 1996 1995 1994(2)
----------- ------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ......... $1.0000 $1.0000 $1.0000 $1.0000
INCOME FROM INVESTMENT OPERATIONS -------- ------- ------- -------
Net investment income...................... 0.0162 0.0384 0.0421 0.0184
-------- ------- ------- -------
Total from investment operations......... 0.0162 0.0384 0.0421 0.0184
-------- ------- ------- -------
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income........ (0.0162) (0.0384) (0.0421) (0.0184)
-------- ------- ------- -------
Total dividends to shareholders.......... (0.0162) (0.0384) (0.0421) (0.0184)
-------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ............... $1.0000 $1.0000 $1.0000 $1.0000
======== ======= ======= =======
TOTAL RETURN ................................. 4.06%(3) 3.91% 4.30% 2.78%(3)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period ($1,000's)......... $217 $117 $74 $11
Ratio of expenses to average net assets(1)... 1.63%(3) 1.69% 1.94% 1.93%(3)
Ratio of net income to average net assets.... 4.06%(3) 3.87% 4.19% 3.29%(3)
(1) Ratio of expenses to average net assets includes expenses paid indirectly beginning
in fiscal year 1995. The ratios before voluntary waiver of certain fees incurred by
the portfolio and expense reimbursements for Class A shares were .87% in 1997, .89%
in 1996, 1.04% in 1995, 1.04% in 1994, and 1.03% in 1993; for Class B shares, the
ratios were 1.95% in 1997, 1.90% in 1996, 2.10% in 1995, and 2.62% in 1994.
(2) From the commencement of offering Class B shares.
(3) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
TAX-EXEMPT PORTFOLIO
CLASS A SIX MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
1997 --------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ....... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
INCOME FROM INVESTMENT OPERATIONS -------- ------- ------- ------- ------- -------
Net investment income.................... 0.0154 0.0301 0.0339 0.0235 0.0203 0.0238
Net realized gains....................... - - 0.0054 - - -
-------- ------- ------- ------- ------- -------
Total from investment operations....... 0.0154 0.0301 0.0393 0.0235 0.0203 0.0238
-------- ------- ------- ------- ------- -------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS
Dividends from net investment income..... (0.0154) (0.0301) (0.0339) (0.0235) (0.0203) (0.0238)
Distributions from net realized gains.... - - (0.0054) - - -
-------- ------- ------- ------- ------- -------
Total dividends and distributions
to shareholders........................ (0.0154) (0.0301) (0.0393) (0.0235) (0.0203) (0.0238)
-------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ............. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======== ======= ======= ======= ======= =======
TOTAL RETURN ............................... 3.16%(3) 3.05% 4.01% 2.37% 2.06% 2.41%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period ($1,000's)....... $31,387 $31,974 $30,988 $33,612 $34,513 $32,425
Ratio of expenses to
average net assets (1).................... 0.57%(3) 0.57% 0.61% 0.60% 0.50% 0.57%
Ratio of net income to average net assets.. 3.11%(3) 3.01% 3.39% 2.33% 2.03% 2.36%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
SIX MONTHS
ENDED MAY 2
JUNE 30, YEARS ENDED TO
1997 DECEMBER 31, DEC. 31,
(UNAUDITED) 1996 1995 1994(2)
----------- ------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ....... $1.0000 $1.0000 $1.0000 $1.0000
INCOME FROM INVESTMENT OPERATIONS -------- ------- ------- -------
Net investment income.................... 0.0090 0.0199 0.0226 0.0097
Net realized gains....................... - - 0.0054 -
-------- ------- ------- -------
Total from investment operations....... 0.0090 0.0199 0.0280 0.0097
-------- ------- ------- -------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS
Dividends from net investment income..... (0.0090) (0.0199) (0.0226) (0.0097)
Distributions from net realized gains.... - - (0.0054) -
-------- ------- ------- -------
Total dividends and distributions
to shareholders........................ (0.0090) (0.0199) (0.0280) (0.0097)
-------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ............. $1.0000 $1.0000 $1.0000 $1.0000
======== ======= ======= =======
TOTAL RETURN ............................... 2.24%(3) 2.01 2.83% 1.45%(3)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period ($1,000's)....... $12 $2 $1 $1
Ratio of expenses to average net assets(1). 1.50%(3) 1.53% 1.73% 1.66%(3)
Ratio of net income to average net assets.. 2.47%(3) 2.00% 2.12% 1.38%(3)
(1) Ratio of expenses to average net assets includes expenses paid indirectly beginning
in fiscal year 1995. The ratios before voluntary waiver of certain fees incurred by
the portfolio and expense reimbursements for Class A shares were .74% in 1997, .72%
in 1996, .81% in 1995, .76% in 1994, and .77% in 1993; for Class B shares, the ratios
were 2.65% in 1997, 4.22% in 1996, 3.66% in 1995, and 3.61% in 1994.
(2) From the commencement of offering Class B shares.
(3) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 - ACCOUNTING POLICIES
Composite Cash Management Company (the "Company") is registered under the
Investment Company Act of 1940, as amended, as an open-end diversified
management investment company. The Company consists of taxable and tax-exempt
money market portfolios, each designed to meet different investment objectives.
The Company offers both Class A and Class B shares. The two classes of shares
differ in their respective sales charges, shareholder servicing fees, and
distribution and service fees.
Following is a summary of significant accounting policies, in conformity with
generally accepted accounting principles, which are consistently followed by the
Company in the preparation of its financial statements.
a. Investment securities are valued at cost as adjusted for amortization of
premiums and discounts where applicable. The Board of Directors regularly and
routinely monitors amortized cost assigned to these securities to ensure that
carrying value approximates market valuation.
b. The Company requires the custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for repur-
chase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the
seller of the agreement defaults and the value of collateral declines, or if
the seller enters an insolvency proceeding, realization of the value of the
collateral by the Company may be delayed or limited.
c. Income and expenses (other than expenses attributable to a specific class)
are allocated daily to each class based on the value of settled shares
outstanding. Gains and losses are allocated daily to each class based on
value of shares outstanding. Dividends are declared separately for each
class. Neither class has preferential dividend rights; differences in per-
share dividend rates are generally due to differences in separate class
expenses, including distribution and service fees.
d. Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and discounts, and is computed daily.
e. The Company distributes its net interest income daily plus or minus any
realized gains or losses, if applicable. Net interest income equals return on
the investment portfolio less expenses including management fees.
f. Security transactions are accounted for on trade date (execution date of the
order to buy or sell). The cost of investments sold is determined by use of
the specific identification method for both financial reporting and federal
income tax purposes.
g. The Company complies with requirements of the Internal Revenue Code
applicable to regulated investment companies and distributes its income and
realized capital gains so that no provision for federal income or excise tax
is required. Income dividends are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
h. Custodial fees have been increased by $29,327 and $3,612 for the Money Market
and Tax-Exempt portfolios, respectively, as a result of "expense offset
arrangements." The Company could have otherwise employed the assets to
produce income if it had not entered into such arrangements. In accordance
with the regulations, such amounts are added to net custodial fees and then
reflected as a deduction, "fees paid indirectly" to derive net expenses.
There were no "expense offset arrangements" other than custodial fees.
i. The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statement and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 2 - TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
The amounts of fees and expenses described below are shown in the Company's
statement of operations. Composite Research & Management Co. (the "Adviser")
manages each Portfolio; Murphey Favre, Inc. (the "Distributor") is the principal
underwriter and distributor; and Murphey Favre Securities Services, Inc. (the
"Transfer Agent") is the transfer and shareholder servicing agent. Murphey
Favre, Inc., recently formed Composite Funds Distributor, Inc. (CFDI) as its
successor in interest for the underwriter and distributor functions. The
Company's Board of Directors approved the transfer of the distribution contract
to CFDI, effective July 14, 1997. All are affiliates of Washington Mutual Bank
and Washington Mutual fsb and subsidiaries of Washington Mutual, Inc.
Management fees were paid by the Company to the Adviser. Management fees are
equal to an annual rate of .45% of each portfolio's average daily net assets of
the first $1 billion and .40% of average daily net assets in excess of $1
billion.
Under terms of the management agreement, the Adviser will reimburse the
Company should portfolio expenses (excluding taxes, interest, and portfolio
brokerage but including the management fee) exceed in any fiscal year 1.50% of
the average daily net assets up to $30 million, and 1% of such net assets over
$30 million. No such reimbursement was required during the six months ended June
30, 1997.
Directors' fees and expenses were paid directly to directors having no
affiliation with the Company other than in their capacity as directors. Other
officers and directors received no compensation from the Company.
Shareholder servicing fees were paid to the Transfer Agent for services
incidental to issuance and transfer of shares, maintaining shareholder lists,
and issuing and mailing distributions and reports. The authorized monthly
shareholder servicing fees are $1.85 and $1.95 ($1.50 and $1.60 prior to April
1, 1997) per Class A and Class B shareholder accounts, respectively. The
Transfer Agent is currently waiving the shareholder servicing fee on Class B
shareholder accounts. Additionally, for all shareholder accounts with balances
below $1,000, the Transfer Agent has waived shareholder servicing fees. For the
six months ended June 30, 1997, the total shareholder servicing fees waived were
$79,976 and $753 for the Money Market and Tax-Exempt portfolios, respectively.
Distribution expenses were paid to the Distributor, in accordance with
separate Distribution Plans for Class A and Class B. The Company's Board of
Directors adopted the Plans pursuant to Rule 12b-1 of the Investment Company Act
of 1940. The Class A Distribution Plan provides that the Company will reimburse
MFI up to 0.15% of the average daily net assets attributable to Class A shares
annually for a portion of its expenses incurred in distributing the Company's
Class A shares, including payments to brokers. The Class B Distribution Plan
provides that the Company will pay the Distributor a distribution fee, equal to
0.75% annually, and a service fee of 0.25% of the Company's average daily net
assets attributable to Class B shares.
For the six months ended June 30, 1997, the Distributor received contingent
deferred sales charges of $1,893 for the Money Market Portfolio upon redemption
of Class B shares as reimbursement for sales commissions advanced by the
Distributor at the time of such sales.
For non-IRA shareholder accounts with balances below $1,000 and IRA
shareholder accounts with balances below $500, the Distributor has agreed to
reimburse the Company for printing and postage costs. For the six months ended
June 30, 1997, the Money Market and Tax-Exempt portfolios were reimbursed a
total of $33,174 and $367, respectively.
The Adviser, Transfer Agent, and Distributor have jointly agreed to reimburse
the Tax-Exempt Portfolio for a portion of expenses incurred. For the six months
ended June 30, 1997, the Tax-Exempt Portfolio was reimbursed a total of $25,540.
NOTE 3 - CAPITAL STOCK
MONEY MARKET PORTFOLIO
Capital stock authorized.............5,000,000,000
Designated as:
Class A............................3,000,000,000
Class B............................2,000,000,000
Par value per share.................. $0.0001
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
SHARES
Sold....................................................... 338,775,131 600,191,639 287,240 429,250
Issued for reinvestment of dividends and capital gains..... 5,770,881 9,585,807 2,294 4,519
------------- ----------- ------------ -----------
344,546,012 609,777,446 289,534 433,769
Reacquired................................................. (317,679,785) (551,647,506) (189,471) (391,277)
------------- ----------- ------------ -----------
Net increase............................................... 26,866,227 58,129,940 100,063 42,492
============= =========== ============ ===========
</TABLE>
TAX-EXEMPT PORTFOLIO
Capital stock authorized.............5,000,000,000
Designated as:
Class A............................3,000,000,000
Class B............................2,000,000,000
Par value per share.................. $0.0001
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
SHARES
Sold....................................................... 28,151,353 54,027,014 11,714 2,901
Issued for reinvestment of dividends and capital gains..... 496,095 939,901 58 8
------------- ----------- ------------ -----------
28,647,448 54,966,915 11,772 2,909
Reacquired................................................. (29,234,863) (53,980,784) (1,623) (1,737)
------------- ----------- ------------ -----------
Net increase (decrease).................................... (587,415) 986,131 10,149 1,172
============= =========== ============ ===========
</TABLE>
<PAGE>
===========================================
-------------------------------------------
For further information, please contact:
FUND OFFICES
Composite Group of Funds
601 W. Main Avenue, Suite 300
Spokane, WA 99201-0613
Phone: (509) 353-3550
Toll free: (800) 543-8072
-------------------------------------------
===========================================
ADVISER
Composite Research & Management Co.
1201 Third Avenue, Suite 1400 Seattle, WA 98101-3015
DISTRIBUTOR
Composite Funds Distributor, Inc.
601 W. Main Avenue, Suite 300 Spokane, WA 99201-0613
CUSTODIAN
Investors Fiduciary Trust Company
127 W. 10th Street Kansas City, MO 64105-1716
INDEPENDENT PUBLIC ACCOUNTANTS
LeMaster & Daniels PLLC
601 W. Riverside Avenue, Suite 700 Spokane, WA 99201-0614
COUNSEL
Paine, Hamblen, Coffin, Brooke & Miller LLP
717 W. Sprague Avenue, Suite 1200 Spokane, WA 99204-0464
OFFICERS
President
William G. Papesh
Vice President
Gene G. Branson
Vice President & Treasurer
Monte D. Calvin
Secretary
John T. West
BOARD OF DIRECTORS
Members
Wayne L. Attwood, M.D.
Kristianne Blake
Anne V. Farrell
Michael K. Murphy
William G. Papesh
Dan Pavelich
Jay Rockey
Richard C. Yancey
This report is submitted for the general information of
shareholders of the Fund. For more detailed information
about the Fund, its officers and directors, fees, expenses
and other pertinent information, please see the prospectus
of the Fund. This report is not authorized for distribution
to prospective investors in the Fund unless preceded or
accompanied by an effective prospectus.
[RECYCLE LOGO] (8/97)
50034
COMPOSITE
CASH
MANAGEMENT
COMPANY
SEMIANNUAL
REPORT
JUNE 30, 1997
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S SEMIANNUAL REPORT AND FORM N-SAR WHICH ARE ON FILE WITH THE
SECURITIES AND EXCHANGE COMMISSION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH DOCUMENTS.
</LEGEND>
<CIK> 0000312346
<NAME> Composite Cash Management Company
<SERIES>
<NUMBER> 011
<NAME> Money Market Portfolio Class A
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 260,818,394
<INVESTMENTS-AT-VALUE> 260,818,394
<RECEIVABLES> 3,458,723
<ASSETS-OTHER> 328,433
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 264,605,550
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,167,003
<TOTAL-LIABILITIES> 8,167,003
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 256,438,547
<SHARES-COMMON-STOCK> 256,221,535
<SHARES-COMMON-PRIOR> 229,355,308
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 256,438,547
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,747,798
<OTHER-INCOME> 0
<EXPENSES-NET> (910,227)
<NET-INVESTMENT-INCOME> 5,837,571
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 5,837,571
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5,835,076)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 338,775,131
<NUMBER-OF-SHARES-REDEEMED> (317,679,785)
<SHARES-REINVESTED> 5,770,881
<NET-CHANGE-IN-ASSETS> 26,966,290
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 543,906
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,023,377
<AVERAGE-NET-ASSETS> 242,930,108
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.024
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.024)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.78
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S SEMIANNUAL REPORT AND FORM N-SAR WHICH ARE ON FILE WITH THE
SECURITIES AND EXCHANGE COMMISSION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH DOCUMENTS.
</LEGEND>
<CIK> 0000312346
<NAME> Composite Cash Management Company
<SERIES>
<NUMBER> 012
<NAME> Money Market Portfolio Class B
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 260,818,394
<INVESTMENTS-AT-VALUE> 260,818,394
<RECEIVABLES> 3,458,723
<ASSETS-OTHER> 328,433
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 264,605,550
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,167,003
<TOTAL-LIABILITIES> 8,167,003
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 256,438,547
<SHARES-COMMON-STOCK> 217,012
<SHARES-COMMON-PRIOR> 116,949
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 256,438,547
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,747,798
<OTHER-INCOME> 0
<EXPENSES-NET> (910,227)
<NET-INVESTMENT-INCOME> 5,837,571
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 5,837,571
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,495)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 287,240
<NUMBER-OF-SHARES-REDEEMED> (189,471)
<SHARES-REINVESTED> 2,294
<NET-CHANGE-IN-ASSETS> 26,966,290
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 543,906
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,023,377
<AVERAGE-NET-ASSETS> 242,930,108
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.016
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.016)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.63
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S SEMIANNUAL REPORT AND FORM N-SAR WHICH ARE ON FILE WITH THE
SECURITIES AND EXCHANGE COMMISSION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH DOCUMENTS. </LEGEND>
<CIK> 0000312346
<NAME> Composite Cash Management Company
<SERIES>
<NUMBER> 021
<NAME> Tax-Exempt Portfolio Class A
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 31,851,138
<INVESTMENTS-AT-VALUE> 31,851,138
<RECEIVABLES> 573,380
<ASSETS-OTHER> 114,839
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 32,539,357
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,140,481
<TOTAL-LIABILITIES> 1,140,481
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 31,398,876
<SHARES-COMMON-STOCK> 31,386,522
<SHARES-COMMON-PRIOR> 31,973,937
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 31,398,876
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 587,501
<OTHER-INCOME> 0
<EXPENSES-NET> (88,401)
<NET-INVESTMENT-INCOME> 499,100
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 499,100
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (499,031)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28,151,353
<NUMBER-OF-SHARES-REDEEMED> (29,234,863)
<SHARES-REINVESTED> 496,095
<NET-CHANGE-IN-ASSETS> (577,266)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 71,755
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 115,061
<AVERAGE-NET-ASSETS> 31,792,923
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.015
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.015)
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S SEMIANNUAL REPORT AND FORM N-SAR WHICH ARE ON FILE WITH THE
SECURITIES AND EXCHANGE COMMISSION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH DOCUMENTS. </LEGEND>
<CIK> 0000312346
<NAME> Composite Cash Management Company
<SERIES>
<NUMBER> 022
<NAME> Tax-Exempt Portfolio Class B
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 31,851,138
<INVESTMENTS-AT-VALUE> 31,851,138
<RECEIVABLES> 573,380
<ASSETS-OTHER> 114,839
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 32,539,357
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,140,481
<TOTAL-LIABILITIES> 1,140,481
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 31,398,876
<SHARES-COMMON-STOCK> 12,353
<SHARES-COMMON-PRIOR> 2,205
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 31,398,876
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 587,501
<OTHER-INCOME> 0
<EXPENSES-NET> (88,401)
<NET-INVESTMENT-INCOME> 499,100
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 499,100
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (946,927)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,714
<NUMBER-OF-SHARES-REDEEMED> (1,623)
<SHARES-REINVESTED> 58
<NET-CHANGE-IN-ASSETS> (577,266)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 71,755
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 115,061
<AVERAGE-NET-ASSETS> 31,792,923
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.009
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<PER-SHARE-DIVIDEND> (0.009)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
