SUMMIT
CASH RESERVES
FUND
Financial Institutions
Series Trust
FUND LOGO
Annual Report
May 31, 1995
<PAGE>
Officers and Trustees
Arthur Zeikel, President and Trustee
Joe Grills, Trustee
Walter Mintz, Trustee
Melvin R. Seiden, Trustee
Stephen B. Swensrud, Trustee
Harry Woolf, Trustee
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Carlo J. Giannini, Vice President
Kevin J. McKenna, Vice President
Joseph T. Monagle, Vice President
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, NY 10286
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
<PAGE>
Summit Cash
Reserves Fund
Financial Institutions
Series Trust
Box 9011
Princeton, NJ
08543-9011
DEAR SHAREHOLDER
For the year ended May 31, 1995, Summit Cash Reserves Fund paid
shareholders a net annualized dividend of 4.52%*. For the six-month
period ended May 31, 1995, the Fund paid shareholders a net
annualized dividend of 5.07%*. The Fund's 7-day yield as of May 31,
1995 was 5.19% (excluding gains and losses) and 5.20% (including
gains and losses).
The Environment
Increasing signs of slowing economic growth improved the investment
outlook during the six months ended May 31, 1995. Recent declines in
indicators such as new home sales and durable goods orders were
reflected in the slight downward revision in first-quarter gross
domestic product growth to 2.7% from 2.8%, a level appreciably lower
than the final quarter of 1994. At the same time, inventories of
unsold goods grew at a slower rate than previously estimated, while
consumer, residential construction and capital goods spending were
revised upward. As a result, it appears that the economy is losing
enough momentum to keep inflation under control and preclude further
significant monetary policy tightening by the Federal Reserve Board.
Despite some periods of strengthening, the US dollar has been
persistently weak relative to the yen and the Deutschemark. Large
trade deficits and exports of capital from the United States have
kept the US currency in a decade-long decline relative to the
Japanese and German currencies. Over the longer term, since the
United States has the highest productivity among industrialized
nations and among the lowest labor costs, demand for US
dollar-denominated assets may improve. However, a reduction of the
still-widening US trade deficit may be necessary before the US
dollar appreciates substantially relative to the yen and the
Deutschemark. Another important factor that will continue to
influence currency markets is the increasing possibility of
US/Japanese trade sanctions.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
<PAGE>
Portfolio Matters
Since our last shareholder report, short-term interest rates first
rose in response to tightening by the Federal Reserve Board but in
recent months fell as the economy began to stall. During much of the
six-month period ended May 31, 1995, we maintained a relatively
defensive posture, with the portfolio's average life in the mid
40-day--mid 50-day range. However, as the end of May 1995
approached, we extended the average life into the mid 70-day area as
economic activity had slowed significantly.
In December, the short end of the market continued to benefit from
strong technicals. These conditions produced several trading
opportunities. By way of illustration, we sold February US Treasury
bills and bought February Government agency securities for a pickup
of 70 basis points (0.70%). By December month-end, we had reduced
the average portfolio maturity to 44 days.
During January, we maintained the Fund's modest commitment to the
market with the average life fluctuating between 45 days and 55
days. Strong technicals and a steep yield curve continued to provide
attractive investment opportunities. We purchased three-monthand
six-month securities which were attractive relative to the very
front end of the yield curve, which was influenced by a low
financing rate.
February was greeted by the Federal Reserve Board's decision to
increase the Federal Funds and discount rates by 50 basis points.
Armed with weaker economic news, strong technicals and a view that
the Federal Reserve Board would now take a brief hiatus, the short
end rallied. By mid-month we had extended the portfolio's average
life to 60 days by investing in one-year securities. We also added
attractively priced agency floating rate instruments to the
portfolio, bringing these holdings to 23% of total assets.
March was characterized by unusually strong technicals, which kept
the market firm throughout the month. A flight to quality rally
caused by the Barings Securities PLC collapse and US dollar support
activities only exacerbated this condition. With the market
assigning only a slight probability to any monetary policy change at
the March Federal Open Market Committee meeting, we began extending
the Fund's average life with purchases of one-year maturities.
<PAGE>
April continued to provide evidence of a slowing economy with most
economic indexes posting significantly lower growth. During the
period, the US dollar continued under pressure. However, central
bank support only served to exacerbate the already strong
technicals. In this environment of dramatic yield curve flattening,
we used a barbelled investment strategy. Using investments in
one-year instruments and 30-day securities, we maintained the Fund's
average life in the mid 50-day range. The relatively modest average
life reflected our anticipation of a reduction of 11%--15% of the
asset base by mid-May. In addition to the yield curve flattening,
quality spreads had narrowed substantially, providing numerous swap
opportunities into US Treasury and agency securities for minimal
yield give-ups.
May provided no relief to the conditions of the previous months as
investors reached for yield with little anticipation of any further
Federal Reserve Board tightening. The consensus opinion had the
Federal Reserve Board on hold for the foreseeable future, and the
continued demand for supply forced further flattening. The
flattening culminated with the two-year Treasury note briefly
breaking through 6% and the Treasury bill curve inverting. Our
investment strategy was to reduce the Fund's emphasis on overnight
cash in favor of one-month bank notes and six-month agency discount
notes. After funding the substantial redemption on May 16, 1995, we
extended the portfolio's average life to 72 days by month-end.
Looking forward, we do not anticipate market conditions abating
anytime soon. Economic activity is likely to continue to weaken to
the extent the Federal Reserve Board may consider a reversal of
monetary policy. Accordingly, we expect to maintain the Fund's
current optimistic market commitment.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Carlo J. Giannini)
Carlo J. Giannini
Vice President and Portfolio Manager
July 3, 1995
<PAGE>
IMPORTANT TAX INFORMATION (unaudited)
None of the ordinary income distributions paid daily by Summit Cash
Reserves Fund of the Financial Institutions Series Trust during the
fiscal year ended May 31, 1995 qualify for the dividends-received
deduction for corporations. Additionally, there were no long-term
capital gains distributions paid during the year.
The law varies in each state as to whether and what percentage of
dividend income attributable to Federal Obligations is exempt from
state income tax. We recommend that you consult your tax adviser to
determine if any portion of the dividends you received is exempt
from state income tax.
[FN]
*For purposes of this calculation, Federal Obligations include US
Treasury Notes, USTreasury Bills and US Treasury Bonds. Also
included are obligations issued by the following agencies: Banks for
Cooperatives, Federal Intermediate Credit Banks, Federal Land Banks,
Federal Home Loan Banks, and the Student Loan Marketing Association.
Repurchase Agreements are not included in this calculation.
Listed below are the percentages of total assets of the Fund
invested in Federal Obligations as of the end of each quarter of the
fiscal year:
Federal
For the Quarter Ended Obligations*
August 31, 1994 15.07%
November 30, 1994 21.29%
February 28, 1995 23.25%
May 31, 1995 23.03%
Of the Fund's dividends declared daily to shareholders from ordinary
income during the fiscal year ended May 31, 1995, 12.64% was
attributable to Federal Obligations. In calculating the foregoing
percentages, Fund expenses have been allocated on a pro rata basis.
Please retain this information for your records.
<PAGE>
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Bank Notes--5.6%
First Bank of $4,000 6.04 % 6/01/95 $ 4,000
South Dakota, N.A.
Morgan Guaranty 1,000 6.40 5/28/96 1,000
Trust Co.
Total Bank Notes
(Cost--$5,000 ) 5,000
Certificates of Deposit--European--1.1%
Abbey National 1,000 6.42 5/29/96 1,000
Treasury Services PLC
Total Certificates of Deposit--European
(Cost--$1,000) 1,000
Certificates of Deposit--Yankee--11.2%
Deutsche Bank, NY 1,000 6.40 5/29/96 1,000
Rabobank 1,000 6.69 3/08/96 1,005
Nederland, NY
Sanwa Bank, Chicago 4,000 6.045 6/19/95 4,000
Sumitomo Bank, NY 4,000 6.04 6/05/95 4,000
Total Certificates of Deposit--Yankee
(Cost--$10,001) 10,005
<PAGE>
Commercial Paper--Discount--37.8%
Beta Finance Inc. 1,000 6.00 7/18/95 992
CXC Incorporated 1,000 6.00 7/14/95 993
Cheltenham & Glouster 2,000 6.02 6/09/95 1,997
Building Society
Ciesco L.P. 402 6.25 6/01/95 402
Corporate 2,500 6.02 6/05/95 2,498
Receivables Corp.
Deer Park 1,000 5.98 6/08/95 999
Refining L.P. 3,000 6.00 6/28/95 2,986
Hanson Finance 3,500 6.02 6/05/95 3,497
(UK) PLC
McKenna Triangle 2,000 6.02 6/05/95 1,998
National Corporation 1,000 5.96 6/19/95 997
New Center 2,000 6.25 7/07/95 1,988
Asset Trust 1,000 5.96 8/09/95 988
Nomura Holding 4,000 6.03 7/14/95 3,971
America Inc.
Preferred 1,000 5.95 8/17/95 987
Receivables
Funding Corp.
Santander Finance 2,000 6.27 8/07/95 1,977
(Delaware) Inc.
Sheffield 3,500 5.97 6/12/95 3,493
Receivables Corp.
<PAGE>
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity Value
Issue Amount Rate* Date (Note 1a)
Commercial Paper--Discount (concluded)
Svenska $1,000 5.95 % 8/15/95 $ 987
Handelsbanken, Inc.
Windmill Funding Corp. 2,000 6.00 7/26/95 1,981
Total Commercial Paper--Discount
(Cost--$33,729) 33,731
Corporate Notes--2.3%
Abbey National 1,000 6.45 5/15/96 1,004
Treasury Services PLC
SMM Trust (1995-K) 1,000 6.0825++ 6/14/96 1,000
Total Corporate Notes
(Cost--$2,000) 2,004
Master Notes--4.5%
Goldman Sachs 4,000 6.08 2/14/96 4,000
Group L.P.++
Total Master Notes (Cost--$4,000) 4,000
US Government, Agency & Instrumentality Obligations--
Discount--6.5%
Federal Home Loan Bank 1,000 6.08 3/07/96 956
Federal National 2,000 5.72 11/30/95 1,942
Mortgage Association
<PAGE>
US Treasury Bills 3,000 6.83 1/11/96 2,896
Total US Government, Agency & Instrumentality
Obligations--Discount (Cost--$5,766) 5,794
US Government, Agency & Instrumentality Obligations--
Non-Discount--28.9%
Federal Home 1,000 6.43++ 6/21/95 1,000
Loan Bank 1,000 6.41 11/22/95 1,002
1,000 6.43++ 12/28/95 1,000
2,000 5.95 2/15/96 2,011
1,000 6.46++ 6/17/96 1,000
5,000 5.8225++ 8/05/96 4,991
Federal National 2,000 6.33 5/13/96 2,000
Mortgage Association++ 5,000 6.12 2/21/97 5,000
1,800 6.45 5/19/97 1,800
1,000 6.50 5/14/98 1,000
US Treasury Notes 4,000 4.25 11/30/95 3,969
1,000 4.25 12/31/95 991
Total US Government, Agency & Instrumentality
Obligations--Non-Discount (Cost--$25,728) 25,764
Total Investments (Cost--$87,224)--97.9% 87,298
Other Assets Less Liabilities--2.1% 1,821
--------
Net Assets--100.0% $ 89,119
========
[FN]
*Commercial Paper and certain US Government Agency Obligations are
traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Fund. Other
securities bear interest at the rates shown, payable at fixed dates
or upon maturity. The interest rates on variable rate securities are
adjusted periodically based upon the appropriate indexes; the
interest rates shown are the rates in effect at May 31, 1995.
++Variable Rate Notes.
See Notes to Financial Statements.
<PAGE>
<TABLE>
FINANCIAL INFORMATION
<CAPTION>
Statement of Assets and Liabilities as of May 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$87,224,077*) (Notes 1a & 1e) $ 87,297,505
Cash 16,045
Receivables:
Securities sold $ 2,996,485
Interest 202,952 3,199,437
------------
Prepaid registration fees and other assets (Note 1d) 88,267
------------
Total assets 90,601,254
------------
Liabilities: Payables:
Beneficial interest redeemed 1,365,361
Administrator (Note 2) 23,673
Investment adviser (Note 2) 23,673 1,412,707
------------
Accrued expenses and other liabilities 69,732
------------
Total liabilities 1,482,439
Net Assets: Net assets $ 89,118,815
============
Net Assets Shares of beneficial interest, $.10 par value, unlimited number of
Consist of: shares authorized $ 8,904,539
Paid-in capital in excess of par 80,140,848
Unrealized appreciation on investments--net 73,428
------------
Net assets--Equivalent to $1.00 per share based on 89,045,387 shares
of beneficial interest outstanding $ 89,118,815
============
<FN>
*Cost for Federal income tax purposes. As of May 31, 1995, net
unrealized appreciation for Federal income tax purposes amounted to
$73,428, of which $73,630 related to appreciated securities and $202
related to depreciated securities.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
<CAPTION>
For the Year Ended
May 31, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,951,605
(Note 1c):
Expenses: Investment advisory fees (Note 2) $ 306,952
Administrative fees (Note 2) 306,952
Transfer agent fees (Note 2) 211,232
Registration fees (Note 1d) 88,561
Professional fees 53,018
Printing and shareholder reports 40,964
Accounting services (Note 2) 34,728
Trustees' fees and expenses 30,487
Custodian fees 21,353
Other 2,359
------------
Total expenses 1,096,606
------------
Investment income--net 4,854,999
------------
Realized & Realized gain on investments--net 5,155
Unrealized Change in unrealized appreciation/depreciation on investments--net 143,964
Gain on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 5,004,118
(Note 1c): ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended May 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 4,854,999 $ 3,592,553
Realized gain on investments--net 5,155 41,290
Change in unrealized appreciation/depreciation on
investments--net 143,964 (61,245)
------------ ------------
Net increase in net assets resulting from operations 5,004,118 3,572,598
------------ ------------
Dividends & Investment income--net (4,854,999) (3,592,553)
Distributions Realized gain on investments--net (5,155) (41,290)
to Shareholders ------------ ------------
(Note 1f): Net decrease in net assets resulting from dividends and
distributions to shareholders (4,860,154) (3,633,843)
------------ ------------
Beneficial Net proceeds from sale of shares 386,906,148 553,322,448
Interest Net asset value of shares issued to shareholders in reinvestment
Transactions of dividends (Note 1f) 4,849,989 3,625,745
(Note 3): ------------ ------------
391,756,137 556,948,193
Cost of shares redeemed (438,082,555) (578,262,259)
------------ ------------
Net decrease in net assets derived from beneficial interest
transactions (46,326,418) (21,314,066)
------------ ------------
Net Assets: Total decrease in net assets (46,182,454) (21,375,311)
Beginning of year 135,301,269 156,676,580
------------ ------------
End of year $ 89,118,815 $135,301,269
============ ============
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended May 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .0444 .0254 .0262 .0464 .0684
Realized and unrealized gain (loss) on
investments--net .0014 .0003 .0007 (.0001) .0024
-------- -------- -------- -------- --------
Total from investment operations .0458 .0257 .0269 .0463 .0708
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.0444) (.0254) (.0262) (.0463) (.0684)
Realized gain on investments--net (.0001) (.0003) (.0007) .0000 (.0024)++
-------- -------- -------- -------- --------
Total dividends and distributions (.0445) (.0257) (.0269) (.0463) (.0708)
-------- -------- -------- -------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total investment return 4.52% 2.57% 2.74% 4.44% 7.36%
======== ======== ======== ======== ========
Ratios to Expenses .98% .90% .86% .79% .85%
Average ======== ======== ======== ======== ========
Net Assets: Investment income and realized gain
on investments--net 4.35% 2.54% 2.72% 4.48% 7.14%++
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 89,119 $135,301 $156,677 $237,868 $374,212
Data: ======== ======== ======== ======== ========
<FN>
++Includes unrealized gain (loss).
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Summit Cash Reserves Fund (the "Fund") is a separate fund offering a
separate class of shares of Financial Institutions Series Trust (the
"Trust"). The Trust is registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company
which comprises a series of separate portfolios offering a separate
class of shares to selected groups of purchasers. The Fund is
currently the only operating series of the Trust. The following is a
summary of significant accounting policies followed by the Fund.
(a) Valuation of investments--The money market securities in which
the Fund invests are traded primarily in the over-the-counter
markets. Investments maturing more than sixty days after the
valuation date are valued at the most recent bid price or yield
equivalent as obtained from dealers that make markets in such
securities. When such securities are valued with sixty days or less
to maturity, the difference between the valuation existing on the
sixty-first day before maturity and maturity value is amortized on a
straight-line basis to maturity. Investments maturing within sixty
days from their date of acquisition are valued at amortized cost,
which approximates market value. Assets for which market quotations
are not readily available are valued at fair value as determined in
good faith by or under the direction of the Trustees of the Trust.
For purposes of valuation, the maturity of a variable rate security
is deemed to be the next coupon date on which the interest rate is
to be adjusted.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
its shareholders. Therefore, no Federal income tax provision is
required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
<PAGE>
(e) Repurchase agreements--The Fund invests in US Government
securities pursuant to repurchase agreements with a member bank of
the Federal Reserve System or a primary dealer in US Government
securities. Under such agreements, the bank or primary dealer agrees
to repurchase the security at a mutually agreed upon time and price.
The Fund takes possession of the underlying securities, marks to
market such securities and, if necessary, receives additional
securities daily to ensure that the contract is fully
collateralized.
(f) Dividends to shareholders--The Fund declares dividends daily and
reinvests daily such dividends (net of non-resident alien tax and
back-up withholding tax) in additional fund shares at net asset
value. Dividends are declared from the total of net investment
income and net realized gain or loss on investments.
2. Investment Advisory and Administrative
Agreements:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM" or "Investment Adviser") and Broadcort
Capital Corporation (the "Administrator"), a subsidiary of Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of ML & Co., which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Investment Adviser and the Administrator each receive
a fee from the Fund at the end of each month at the annual rate of
0.275% of the average daily net assets of the Fund not exceeding
$500 million, and at the annual rate of 0.25% of average daily net
assets in excess of $500 million. Under their respective agreements
with the Fund, the Investment Adviser and the Administrator are
obligated to reimburse the Fund to the extent the Fund's aggregate
NOTES TO FINANCIAL STATEMENTS (concluded)
ordinary operating expenses (excluding interest, taxes, brokerage
fees and commissions, and extraordinary charges such as litigation
costs) exceed in any fiscal year 2.5% of the Fund's first $30
million of average daily net assets, 2.0% of the next $70 million of
average daily net assets, and 1.5% of the remaining average daily
net assets. No fee payment will be made to the Investment Adviser or
Administrator during the year which will cause such expenses to
exceed the pro rata expense limitation at the time of such payment.
The Investment Adviser and Administrator will share equally with
respect to any reimbursements made pursuant to the expense
limitations.
<PAGE>
Merrill Lynch Funds Distributor, Inc. ("MLFD"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc., is the distributor of the
shares of the Fund.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a
wholly-owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLFD, MLFDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the periods
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
Summit Cash Reserves Fund of Financial
Institutions Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Summit Cash
Reserves Fund of Financial Institutions Series Trust as of May 31,
1995, the related statements of operations for the year then ended
and changes in net assets for each of the years in the two-year
period then ended, and the financial highlights for each of the
years in the five-year period then ended. These financial statements
and the financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our
audits.
<PAGE>
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at May 31,
1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Summit Cash Reserves Fund of Financial Institutions Series Trust as
of May 31, 1995, the results of its operations, the changes in its
net assets, and the financial highlights for the respective stated
periods in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
June 30, 1995
</AUDIT-REPORT>
