<PAGE> 1
[THE RESERVE FUNDS LOGO]
Founders of
"America's First
Money Fund"
810 Seventh Avenue, New York, NY 10019-5868
GENERAL INFORMATION AND 24-HOUR YIELD AND BALANCE INFORMATION
800-637-1700 - www.reservefunds.com
This literature is not authorized for distribution to prospective investors
unless preceded or accompanied by an appropriate current prospectus.
Distributor -- Resrv Partners, Inc.
TT/SEMI-ANNUAL 01/99
[THE RESERVE FUNDS LOGO]
Founders of
"America's First
Money Fund"
-------------------------------------------------------------------------
SEMI-ANNUAL REPORT
-------------------------------------------------------------------------
TREASURER'S TRUST
PRIMARY INSTITUTIONAL FUND
U.S. GOVERNMENT INSTITUTIONAL FUND
U.S. TREASURY INSTITUTIONAL FUND
INTERSTATE TAX-EXEMPT INSTITUTIONAL FUND
NOVEMBER 30, 1998
<PAGE> 2
RESERVE INSTITUTIONAL TRUST--PRIMARY INSTITUTIONAL FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998--(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT NEGOTIABLE BANK CERTIFICATES OF DEPOSIT -- 23.48% (NOTE 1)
--------- ------------------------------------------------- ------------
<C> <S> <C>
DOMESTIC -- 4.86%
$ 6,000,000 BankBoston, NA, 5.20%, 2/16/99.............................. $ 6,000,000
6,000,000 Chase Manhattan Bank U.S.A., Delaware, 5.20%, 2/5/99........ 6,000,000
------------
12,000,000
------------
EURO -- 6.88%
6,000,000 Abbey National PLC, 5.20%, 2/8/99........................... 6,000,000
6,000,000 Norddeutsche Landesbank Girozentrale, 5.30%, 2/17/99........ 6,000,128
5,000,000 Svenska Handelsbanken, 5.30%, 12/2/98....................... 5,000,001
------------
17,000,129
------------
YANKEE -- 11.74%
6,000,000 Banque Nationale de Paris, 5.13%, 12/7/98................... 6,000,133
6,000,000 BHF Bank AG, 5.23%, 12/7/98................................. 6,000,000
5,000,000 Canadian Imperial Bank of Commerce, 5.20%, 2/16/99.......... 5,000,000
6,000,000 Dresdner Bank, 5.12%, 12/3/98............................... 6,000,000
6,000,000 Westdeutsche Landesbank Girozentrale, 5.12%, 12/3/98........ 6,000,000
------------
29,000,133
------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT............... 58,000,262
------------
COLLATERALIZED PROMISSORY NOTES -- 7.26% (B)
6,000,000 Internationale Nederlanden (US) Funding Corp., 5.07%,
2/26/99.................................................... 5,926,413
6,000,000 Societe Generale, North America, Inc., 5.20%, 12/4/98....... 5,997,403
6,000,000 Toronto-Dominion Holdings (U.S.A.), Inc., 5.26%, 12/2/98.... 5,999,123
------------
TOTAL COLLATERALIZED PROMISSORY NOTES....................... 14,580,311
------------
REPURCHASE AGREEMENTS -- 68.82%
63,000,000 Bear, Stearns & Co. Inc., 5.52%, 12/1/98 (collateralized by
18,274,012 FGRM, $46,084,753 FGRA, and $1,035,154 FNMS,
6.25% to 6.50%, due 11/15/23 to 11/1/28)................... 63,000,000
37,000,000 DLJ Securities Corporation, 5.45%, 12/1/98 (collateralized
by $38,110,309 FMAR, due 4/1/33)........................... 37,000,000
62,500,000 Prudential Securities Inc., 5.47%, 12/1/98 (collateralized
by $10,329,541 FGRM, $3,164,293 FGPC, and $27,349,041 FNDN,
$12,441,789 FNRA and $10,822,653 FNRM, 6.25% to 6.50%, due
11/15/23 to 11/1/28)....................................... 62,500,000
7,500,000 Prudential Securities Inc., 5.20%, 12/1/98 (collateralized
by $7,626,133 U.S. Treasury Notes 4.00%, 10/31/00)......... 7,500,000
------------
TOTAL REPURCHASE AGREEMENTS................................. 170,000,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $245,923,201)....................... 99.56% 245,923,201
OTHER ASSETS, LESS LIABILITIES.............................. .44 1,090,554
------ ------------
NET ASSETS.................................................. 100.00% $247,013,755
====== ============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON
247,013,755 SHARES OF BENEFICIAL INTEREST $.001 PAR VALUE
OUTSTANDING......................................................... $1.00
---
---
THE STATEMENT OF NET ASSETS REPORTED ABOVE COMPRISES ALL OF THE CLASSES OF THE FUND.
THE NET ASSETS OF EACH CLASS IS AS FOLLOWS:
</TABLE>
<TABLE>
<S> <C>
RESERVE PRIMARY INSTITUTIONAL FUND -- CLASS A............... $131,335,709
RESERVE PRIMARY INSTITUTIONAL FUND -- CLASS B............... $ 4,541,841
RESERVE PRIMARY INSTITUTIONAL FUND -- TREASURER'S TRUST..... $111,136,205
------------
$247,013,755
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 3
RESERVE INSTITUTIONAL TRUST -- U.S. GOVERNMENT INSTITUTIONAL FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998--(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT REPURCHASE AGREEMENTS -- 98.77% (NOTE 1)
- --------- ------------------------------- -----------
<C> <S> <C>
$3,000,000 Bear, Stearns & Co. Inc., 5.50%, 12/1/98 (collateralized by $3,000,000
$2,078,335 GNMA, 6.00% - 9.00%, due from 12/5/22 to
9/15/28)...................................................
2,000,000 Prudential Securities Inc., 5.15%, 12/1/98 (collateralized 2,000,000
by $2,050,007 GNMA, 5.50% - 8.00%, due from 5/20/27 to
10/15/28)..................................................
3,000,000 Merrill Lynch GSI, 5.20%, 12/1/98 (collateralized by 3,000,000
$3,091,853 GNMA, 7.00% - 11.50%, due from 8/15/00 to
11/15/27)..................................................
3,000,000 Salomon Brothers Inc., 5.25%, 12/1/98 (collateralized by 3,000,000
$3,004,686 GNMA, 6.00% - 9.00%, due from 12/15/22 to
9/15/28)...................................................
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $11,000,000)........................ 98.77% 11,000,000
OTHER ASSETS, LESS LIABILITIES.............................. 1.23 137,002
------ -----------
NET ASSETS.................................................. 100.00% $11,137,002
====== ===========
</TABLE>
<TABLE>
<C> <S> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
BASED ON 11,137,002 SHARES OF BENEFICIAL INTEREST $.001 PAR
VALUE OUTSTANDING.......................................... $1.00
-----
-----
THE STATEMENT OF NET ASSETS REPORTED ABOVE COMPRISES ALL OF THE CLASSES OF
THE FUND. THE NET ASSETS OF EACH CLASS IS AS FOLLOWS:
</TABLE>
<TABLE>
<S> <C>
RESERVE INSTITUTIONAL GOVERNMENT FUND -- CLASS A............ $ 0
RESERVE INSTITUTIONAL GOVERNMENT FUND -- CLASS B............ $ 4,799,355
RESERVE INSTITUTIONAL GOVERNMENT FUND -- TREASURER'S
TRUST...................................................... $ 6,337,647
-----------
$11,137,002
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 4
RESERVE INSTITUTIONAL TRUST -- U.S. TREASURY INSTITUTIONAL FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998--(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT U.S. TREASURY BILLS -- 99.24% (NOTE 1)
- ---------- ----------------------------- -----------
<C> <S> <C>
$4,900,000 3.76%,12/24/98.............................................. $ 4,888,229
2,000,000 3.77%,1/7/99................................................ 1,992,251
4,500,000 3.85%,1/21/99............................................... 4,475,456
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $11,355,936)........................ 99.24% 11,355,936
OTHER ASSETS, LESS LIABILITIES.............................. .76 86,607
------ -----------
NET ASSETS.................................................. 100.00% $11,442,543
====== ===========
</TABLE>
<TABLE>
<C> <S> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
BASED ON 11,442,543 SHARES OF BENEFICIAL INTEREST $.001 PAR
VALUE OUTSTANDING.......................................... $1.00
-----
-----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 5
RESERVE INSTITUTIONAL TRUST--INTERSTATE TAX-EXEMPT INSTITUTIONAL FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998--(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (a) -- 100.57% (NOTE 1)
--------- ------------------------------------- -----------
<C> <S> <C>
ALABAMA -- 3.98%
$500,000 Pell City IDA for General Signal Corp., 3.50%, 10/1/00...... $ 500,000
-----------
ARIZONA -- 11.94%
500,000 Apache County IDA for Tucson Elec. Pwr Co., Ser. 83B, 3.20%,
12/15/18................................................... 5,000,000
500,000 Pima County IDA PCR for Tucson Electric Project, 3.20%,
10/1/22.................................................... 500,000
500,000 Pima County IDA PCR for Tucson Electric Project, 3.15%,
12/1/22.................................................... 500,000
-----------
1,500,000
-----------
CALIFORNIA -- 3.98%
500,000 Grand Terrace Community Redevelopment Agency, 4.70%,
12/1/11.................................................... 500,000
-----------
COLORADO -- 3.98%
500,000 Smith Creek Metropolitan District Eagle County, 3.15%,
10/1/35.................................................... 500,000
-----------
FLORIDA -- 3.98%
500,000 Boca Raton IDA for Parking Garage Project, 3.78%, 12/1/14... 500,000
-----------
GEORGIA -- 3.98%
500,000 Hapeville IDA for Hapeville Hotel Partnership Project,
3.25%, 11/1/15............................................. 500,000
-----------
LOUISIANA -- 7.94%
500,000 Calcasieu Parish - Sales Tax District 4A, 3.10%, 9/1/99..... 500,000
500,000 Louisiana Public Facilities Authority for W. Knighton
Project, 3.25%, 9/1/25..................................... 500,000
-----------
970,700
-----------
MICHIGAN -- 7.94%
500,000 Jackson EDC for Thrifty Leoni Inc., Project, 3.53%,
12/1/14.................................................... 500,000
500,000 Michigan Job Development Authority for Hitachi Metals,
3.40%, 1/1/04.............................................. 500,000
-----------
1,000,000
-----------
MINNESOTA -- 3.78%
475,000 New Ulm CDA for Robert H. Bradley Project, 3.45%, 10/1/11... 475,000
-----------
MISSOURI -- 3.98%
500,000 Cole IDA for Mobine Manufacturing Series 85, 4.85%,
12/1/15.................................................... 500,000
-----------
NEW JERSEY -- 3.98%
500,000 New Jersey EDA for Volvo of America Corp., 3.69%, 12/1/04... 500,000
-----------
NORTH DAKOTA -- 3.98%
500,000 Minot IDR for Finance Project, 4.20%, 12/1/02............... 500,000
-----------
OKLAHOMA -- 3.98%
500,000 Oklahoma IDA for Christian College, 4.63%, 7/1/15........... 500,000
-----------
PENNSYLVANIA -- 5.57%
500,000 Clarion County IDA Special Development Revenue Bonds for
Meritcare Project, Series A, 3.30%, 12/1/12................ 500,000
200,000 Dallastown Area School District GOB, 3.29%, 2/1/18.......... 200,000
-----------
700,000
-----------
TENNESSEE -- 3.98%
500,000 Chattanooga IDA for Baylor School Project, 3.20%, 11/1/16,
3.50%, 10/1/00............................................. 500,000
-----------
</TABLE>
5
<PAGE> 6
RESERVE INSTITUTIONAL TRUST--INTERSTATE TAX-EXEMPT INSTITUTIONAL FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (a) -- (CONTINUED) (NOTE 1)
--------- ----------------------------------------- -----------
<C> <S> <C>
TEXAS -- 11.66%
$500,000 Harris County HFDC for Greater Houston Project, 3.20%,
11/1/25.................................................... $ 500,000
500,000 Midlothian IDC for Holnam Inc., 3.15%, 12/1/09.............. 500,000
465,000 Port Arthur IDC for American Petrofina, 3.30%, 5/1/03....... 500,000
-----------
1,500,000
-----------
UTAH -- 3.98%
500,000 Salt Lake City IDR for Parkview Plaza Project, 3.28%,
12/1/14.................................................... 500,000
-----------
VIRGINIA -- 3.98%
500,000 Hampton MFHRB Avalon at Hampton I-A Project, 3.10%,
6/15/26.................................................... 500,000
-----------
WISCONSIN -- 3.98%
500,000 Green Bay IDA for St. Mary Cement Company Ltd., 4.00%,
11/1/00.................................................... 500,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $12,640,000)........................ 100.57% 12,640,000
LIABILITIES, LESS OTHER ASSETS.............................. (.57) (71,958)
------ -----------
NET ASSETS.................................................. 100.00% $12,568,042
====== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON
12,199,798 SHARE OF BENEFICIAL INTEREST $.001 PAR VALUE
OUTSTANDING......................................................... $1.00
---
---
THE STATEMENT OF NET ASSETS REPORTED ABOVE COMPRISES ALL OF THE CLASSES OF THE FUND.
THE NET ASSETS OF EACH CLASS IS AS FOLLOWS:
</TABLE>
<TABLE>
<S> <C>
RESERVE INSTITUTIONAL INTERSTATE FUND -- CLASS A............ $ 644,734
RESERVE INSTITUTIONAL INTERSTATE FUND -- CLASS B............ $ 494
RESERVE INSTITUTIONAL INTERSTATE FUND -- TREASURER'S
TRUST...................................................... $11,922,814
-----------
$12,568,042
===========
</TABLE>
- ---------------
(a) The interest rate is subject to change periodically. The rates reported are
those of November 30, 1998. The securities are payable on demand and are
collateralized by letter of credit, other bank credit agreements or
financial guaranty assurance agencies.
(b) Collateralized by bank letter of credit.
GLOSSARY
<TABLE>
<S> <C> <C>
GNMA -- Government National Mortgage Association Mortgage-Backed
Pass-Through Securities
FMAR -- FHLMC Adjustable Rate Mortgage-Backed Pass-Through
Participation Certificates
FNAR -- FNMA Adjustable Rate Mortgage-Backed Pass-Through Securities
FNDN -- FNMA Discount Note
TRIN -- U.S. Treasury STRIPS
HFDC -- Housing Finance Development Corp.
MFHRB -- Multi-Family Housing Revenue Bonds
IDC -- Industrial Development Corp
IDA -- Industrial Development Authority
IDR -- Industrial Development Revenue Bonds
EDC -- Economic Development Corp.
EDA -- Economic Development Authority
CDA -- Commercial Development Authority
PCR -- Pollution Control Revenue Bonds
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 7
RESERVE INSTITUTIONAL TRUST--TREASURER'S TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1998--(UNAUDITED)
<TABLE>
<CAPTION>
U.S. U.S. INTERSTATE
PRIMARY GOVERNMENT TREASURY TAX-EXEMPT
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
FUND FUND FUND FUND
------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
INTEREST INCOME (Note 1).................................... $3,572,498 $150,750 $49,301 $242,890
---------- -------- ------- --------
EXPENSES (Note 2)
Comprehensive fees........................................ 162,171 7,142 3,195 16,973
Distribution Assistance (Note 2).......................... 87,958 4,901 1,816 11,805
Other operating expenses.................................. 138,981 5,093 2,656 11,948
---------- -------- ------- --------
Total Expenses.......................................... 389,110 17,136 7,667 40,728
Less: expenses waived (Note 2)............................ -- -- (2,252) --
---------- -------- ------- --------
Net Expenses............................................ 389,110 17,136 5,415 40,728
---------- -------- ------- --------
NET INVESTMENT INCOME, representing Net Increase in Net
Assets from Investment Operations......................... $3,183,388 $133,614 $43,886 $201,309
========== ======== ======= ========
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERSTATE
PRIMARY U.S. GOVERNMENT U.S. TREASURY TAX-EXEMPT
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
---------------------------- ------------------------- ------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, NOVEMBER 30, MAY 31,
1998(*) 1998 1998(*) 1998(a) 1998(*)(b) 1998(*) 1998(c)
------------- ------------ ------------ ---------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM INVESTMENT
OPERATIONS:
Net investment income
paid to shareholders
as dividends (Note
1).................. $ (3,183,388) $ (4,793,670) $ (133,614) $ (10,690) $ (43,886) $ (201,309) $ (24,600)
------------- ------------ ------------ ---------- ----------- ------------ -----------
FROM CAPITAL SHARE
TRANSACTIONS (at net
asset value of $1.00 per
share):
Net proceeds from sale
of shares............. 340,178,433 228,845,244 18,380,985 3,874,557 14,867,249 21,459,718 14,845,121
Dividends reinvested.... 3,183,388 4,793,670 133,614 10,690 43,886 201,309 24,600
Cost of shares
redeemed.............. (403,925,830) (63,946,334) (15,438,301) (623,898) (3,468,592) (23,769,149) (838,785)
------------- ------------ ------------ ---------- ----------- ------------ -----------
Net increase (decrease)
derived from capital
share transactions and
from investment
operations............ (60,564,009) 169,692,580 3,076,298 3,261,349 11,442,543 (2,108,122) 14,030,936
NET ASSETS:
Beginning of period..... $ 171,700,214 2,007,634 3,261,349 0 0 14,030,936 0
------------- ------------ ------------ ---------- ----------- ------------ -----------
End of period........... $ 111,136,205 $171,700,214 $ 6,337,647 $3,261,349 $11,442,543 $11,922,814 $14,030,936
============= ============ ============ ========== =========== ============ ===========
</TABLE>
- ---------------
(*) Unaudited.
(a) For the period from September 15, 1997 (Commencement of Operations) to May
31, 1998.
(b) For the period October 21, 1998 (Commencement of Operations) to November 30,
1998.
(c) For the period from May 13, 1998 (Commencement of Operations) to May 31,
1998.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED)
(1) SIGNIFICANT ACCOUNTING POLICIES:
--------------------------------
Reserve Institutional Trust (the "Trust") is registered under the Investment
Company Act of 1940 as a nondiversified, open-end investment company. The
policies summarized below are consistently followed in the preparation of
its financial statements in conformity with generally accepted accounting
principles.
A. The Trust's authorized shares of beneficial interest are unlimited, and
currently are divided into four series: Primary Institutional, U.S.
Government Institutional, U.S. Treasury Institutional and Interstate
Tax-Exempt Institutional (collectively the "Funds"). Additionally, each Fund
is divided into four classes of shares: Class A, Class B, Class C and
Treasurer's Trust. Each Class has the same investment objective as its
respective Fund, however, each Class carries a different expense ratio.
B. Securities are valued at amortized cost, which approximates market value.
The amortized cost method values a security at cost at the time of purchase,
and thereafter assumes a constant amortization to maturity of any discount
or premium, irrespective of intervening changes in interest rates or market
values. Pursuant to Rule 2a-7, for the purpose of computing the
average-weighted life to maturity, floating or variable rate instruments, in
which the Fund may invest, will be deemed to be: (1) the notice period
required before the Fund is entitled to receive payment of principal or, (2)
the period remaining until the instrument's next interest rate adjustment.
C. It is the Trust's policy to comply with Subchapter M of the Internal
Revenue Code and to distribute all of its taxable income to its
shareholders. Accordingly, no Federal income tax provision is required.
D. Security transactions are recorded on a trade date basis; interest income
is accrued daily and security premium or discount is amortized or accreted
daily.
E. The Trust's custodian holds the securities owned subject to repurchase
agreements. The Trust's investment adviser determines that the resale amount
of the repurchase agreement is fully collateralized.
F. Net investment income is distributed to shareholders daily and
automatically reinvested in additional Fund shares.
G. Expenses are allocated based on a Fund or Class' net assets or number of
shareholder accounts. Those expenses recognized as directly attributable to
a specific Fund or Class are charged to that Fund or Class directly.
H. The Trusts may enter into repurchase agreements with financial
institutions and securities dealers who are deemed credit-worthy pursuant to
guidelines established by the Funds' Board of Trustees. The Funds'
Investment Adviser will follow procedures intended to provide that all
repurchase agreements are at least 100% collateralized as to principal and
interest. However, in the event of default or bankruptcy by the seller,
realization and/or retention of the collateral may be subject to legal
proceedings.
(2) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
--------------------------------------------------------
Pursuant to an Investment Management Agreement (the "Agreement") between
Reserve Management Company, Inc. ("RMCI") and the Funds, RMCI serves as the
Funds' Investment Adviser subject to the direction of the Board of Trustees.
Under the Agreement, RMCI is responsible for the supervision of the
day-to-day operations of each Fund. RMCI manages the Fund's investments,
effects purchases and sales thereof, and absorbs certain promotional
expenses. For its services as Investment Adviser, RMCI charges each Class a
comprehensive management fee of 0.25% of the average daily net assets.
Each Fund's operating expenses is limited to an annual rate of .25% for
Class A, .45% for Class B and .60% for Treasurer's Trust of each Class'
average daily net assets. The operating expense limitation does not include
brokerage fees and commissions, interest charges, taxes and extraordinary
legal fees and expenses. During the six months ended November 30, 1998, RMCI
voluntarily waived $2,252 of Treasurer's Trust total expenses.
DISTRIBUTION ASSISTANCE AND SHAREHOLDER SERVICE
------------------------------------------------
Pursuant to a Plan of Distribution, each Fund makes payments to firms for
distribution assistance and administrative services provided to shareholders
of Class C and D at an annual rate of .25% and .50%, respectively. No
payments have been made since, to date, both Class C and D have not begun
operations. Under the Plan, shareholders of Class B, C and D may make
payments to firms (including RMCI) providing shareholder service, including
maintaining shareholder accounts, responding to shareholder inquiries and
providing certain other services.
(3) MANAGEMENT'S USE OF ESTIMATES:
----------------------------------
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 at
the dates of the financial statements and the reported amounts of income and
expenses during the reporting periods. Actual results could differ from
those estimates.
8
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED)--(CONTINUED)
(4) COMPOSITION OF NET ASSETS:
-----------------------------
At November 30, 1998, the composition of each Fund's net assets was as
follow:
<TABLE>
<CAPTION>
INTERSTATE
PRIMARY U.S. GOVERNMENT U.S. TREASURY TAX-EXEMPT
------------ --------------- ------------- -----------
<S> <C> <C> <C> <C>
Par Value..................................... $ 247,014 $ 11,137 $ 11,443 $ 12,568
Paid-in-Capital............................... 246,766,741 11,125,865 11,431,100 12,555,474
------------ ----------- ----------- -----------
Net Assets.................................... $247,013,755 $11,137,002 $11,442,543 $12,568,042
============ =========== =========== ===========
</TABLE>
(5) FINANCIAL HIGHLIGHTS:
----------------------
Contained below is per share operating performance data for a share of
beneficial interest outstanding for the periods as indicated. The
information should be read in conjunction with the accompanying financial
data and related notes.
TREASURER'S TRUST
<TABLE>
<CAPTION>
U.S. TREASURY INTERSTATE
PRIMARY U.S. GOVERNMENT INSTITUTIONAL TAX-EXEMPT
INSTITUTIONAL FUND INSTITUTIONAL FUND FUND INSTITUTIONAL FUND
----------------------- ----------------------- ------------- -----------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, NOVEMBER 30, MAY 31,
1998(*) 1998(A) 1998(*) 1998(B) 1998(C)(*) 1998(*) 1998(D)
------------ ------- ------------ ------- ------------- ------------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of year................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- ------- -------
Net investment income from
investment operations..... .0248 .0322 .0236 .0036 .0039 .0149 .0018
Less dividends from net
investment income......... (.0248) (.0322) (.0236) (.0036) (.0039) (.0149) (.0018)
------- ------- ------- ------- ------- ------- -------
Net asset value at end of
period.................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= ======= =======
Total Return................ 4.94% 5.13% 4.76% 4.85% 3.50% 2.99% 3.40%
RATIOS/SUPPLEMENTAL DATA
----------------------------
Net assets end of period
(millions)................. $ 111.1 $ 171.7 $ 6.3 $ 3.3 $ 11.4 $ 11.9 $ 14.0
Ratio of expenses to average
net assets(e)............. .60% .60% .60% .60% .44% .60% .60%
Ratio of net investment
income to average net
assets(e)................. 4.87% 5.00% 4.71% 4.73% 3.44% 2.97% 3.33%
</TABLE>
- ---------------
(*) Unaudited
(a) From October 15, 1997 (Commencement of Operations) to May 31, 1998.
(b) From September 15, 1997 (Commencement of Operations) to May 31, 1997.
(c) From October 21, 1997 (Commencement of Operations) to May 31, 1998.
(d) From May 13, 1998 (Commencement of Operations) to May 31, 1998.
(e) Annualized.
9
