SUMMIT
CASH RESERVES
FUND
Financial Institutions
Series Trust
FUND LOGO
Semi-Annual Report
November 30, 1999
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. An
investment in the Fund is not insured or guaranteed by the
USGovernment. There can be no assurance that the Fund will be able
to maintain a stable net asset value of $1.00 per share. Statements
and other information herein are as dated and are subject to change.
Summit Cash Reserves Fund
Financial Institutions Series Trust
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
Summit Cash Reserves Fund
November 30, 1999
DEAR SHAREHOLDER
For the six-month period ended November 30, 1999, Summit Cash
Reserves Fund's Class A Shares and Class B Shares had net annualized
yields of 4.74% and 3.98%, respectively. The Fund's 7-day yield as
of November 30, 1999 was 5.19% for Class A Shares and 4.43% for
Class B Shares.
The average portfolio maturity for Summit Cash Reserves Fund at
November 30, 1999 was 68 days, compared to 69 days as of May 31,
1999.
The Environment
During the six-month period ended November 30, 1999, US economic
growth continued strengthening while inflationary pressures remained
contained. The US financial markets were volatile, as stock prices
declined for the third consecutive month in September, but then
rebounded in October and advanced on a technology-driven rally in
November. Significant strength in small-capitalization stocks also
emerged in November, particularly in the small cap growth sector as
reflected in the +10.57% rise in the unmanaged Russell 2000 Growth
Index.
Throughout the latter half of the period, investor psychology was
mixed as to whether the Federal Reserve Board would increase
interest rates for the third time this year. At its meeting on
November 16, 1999, the central bank announced its move to tighten 25
basis points (0.25%), essentially putting short-term interest rates
back to where they were before the three quarter-point cuts that
were made last fall. During this period, a dramatic rise in supply
occurred as issuers rushed to meet financing needs prior to year-
end. This resulted in a widening of yield spreads, and we took this
opportunity to increase the Fund's exposure in floating rate notes
linked to the one-month and three-month London Interbank Offered
Rate. Although long-term bond yields also increased during the
period, investors appeared to accept that the move by the Federal
Reserve Board would contain inflationary pressure. However, this
view may not hold if economic growth continues unabated in the New
Year.
The Fund's portfolio composition at the end of the November period
and as of our last report to shareholders is detailed as follows:
11/30/99 5/31/99
Bank Notes 8.0% 1.8%
Certificates of Deposit--European 1.9 0.5
Certificates of Deposit--Yankee 10.9 8.0
Commercial Paper 43.6 72.5
Corporate Notes 2.8 8.1
Funding Agreements 1.1 0.5
Medium-Term Notes 22.7 1.7
Repurchase Agreements 6.6 3.3
US Government, Agency &
Instrumentality Obligations--
Discount -- 3.3
US Government, Agency &
Instrumentality Obligations--
Non-Discount 3.4 1.3
Liabilities in Excess of Other Assets (1.0) (1.0)
------ ------
Total 100.0% 100.0%
====== ======
In Conclusion
We thank you for your investment in Summit Cash Reserves Fund, and
we look forward to reviewing our investment strategy and outlook
with you in our next report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Robert Sabatino)
Robert Sabatino
Vice President and Portfolio Manager
January 5, 2000
We are pleased to announce that Robert Sabatino is responsible for
the day-to-day management of Summit Cash Reserves Fund. Mr. Sabatino
has been employed by Merrill Lynch Asset Management, L.P. since 1995
and has been Vice President since 1998.
Summit Cash Reserves Fund
November 30, 1999
SCHEDULE OF INVESTMENTS (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Bank Notes--8.0%
American Express $ 5,000 5.73++ % 6/19/2000 $ 4,996
Centurion Bank 5,000 5.75++ 7/13/2000 5,000
First USA Bank, NA 2,000 6.215 10/18/2000 1,996
Fleet National Bank 2,100 7.125 5/01/2000 2,107
KeyBank NA 5,000 5.608++ 2/21/2000 4,999
NationsBank NA 2,000 5.67++ 3/16/2000 2,000
Total Bank Notes
(Cost--$21,100) 21,098
Certificates of Deposit--European--1.9%
Svenska 5,000 5.45 12/29/1999 4,997
Handelsbanken AB,
London
Total Certificates of Deposit--European
(Cost--$5,000) 4,997
Certificates of Deposit--Yankee--10.9%
Bank Austria AG, NY 3,000 5.20 5/08/2000 2,986
3,000 6.06 11/20/2000 2,994
Bayerische Hypo-und 2,000 5.15 3/23/2000 1,992
Vereinsbank AG, NY
Commerzbank 2,000 5.085 2/17/2000 1,995
AG, NY 2,000 5.17 3/31/2000 1,992
Credit Suisse 5,000 5.72++ 6/07/2000 5,000
First Boston, NY
DeutscheBank AG, NY 3,000 5.62 6/26/2000 2,989
Societe 2,000 5.16 2/22/2000 1,994
Generale, NY 2,000 5.18 2/28/2000 1,994
2,000 5.29 3/03/2000 1,994
UBS AG, NY 3,000 5.18 3/15/2000 2,990
Total Certificates of Deposit--Yankee
(Cost--$28,994) 28,920
Commercial Paper--43.6%
AT&T Corporation 3,000 6.134++ 7/13/2000 2,998
2,000 5.455++ 8/07/2000 2,000
Alpine Securitization 2,682 5.97 1/13/2000 2,663
Corporation
American Home 3,669 6.02 1/18/2000 3,640
Products, Inc.
Amsterdam Funding 4,683 6.10 1/10/2000 4,653
Corporation 5,000 6.15 1/12/2000 4,966
Apreco, Inc. 5,676 6.12 1/18/2000 5,631
Face Interest Maturity
Issue Amount Rate* Date Value
Commercial Paper (concluded)
Asset $ 2,431 6.00 % 1/18/2000 $ 2,412
Securitization
Cooperative Corp.
Bear Stearns 2,700 5.79 3/09/2000 2,656
Companies, Inc. 3,000 5.88 3/22/2000 2,945
CXC Incorporated 6,000 5.49++ 3/15/2000 6,000
Clipper Receivables 3,332 5.34 12/07/1999 3,329
Corp.
Edison Asset 3,000 5.82 2/22/2000 2,959
Securitization, LLC 2,000 5.80 2/29/2000 1,970
Finova Capital Corp. 3,000 5.86 2/11/2000 2,964
5,000 5.85 2/18/2000 4,935
GTE Corporation 3,000 5.98 2/01/2000 2,969
Grand Funding Corp. 6,000 6.14 1/10/2000 5,961
6,000 6.11 1/20/2000 5,951
Greenwich Funding 3,758 6.14 1/10/2000 3,734
Corp.
Lehman 3,000 5.90 2/16/2000 2,962
Brothers 2,000 5.95 3/21/2000 1,964
Holdings Inc.
Old Line Funding 8,714 6.04 1/12/2000 8,653
Corp.
Park Avenue 400 5.544++ 2/11/2000 400
Receivables
Corp.
Santander Finance 5,000 5.33 12/13/1999 4,991
DE, Inc.
Tulip Funding Corp. 8,600 5.99 2/07/2000 8,504
4,000 5.83 2/15/2000 3,950
UBS Finance 3,605 5.38 12/20/1999 3,595
Delaware Inc.
Variable Funding 5,000 5.37 12/22/1999 4,984
Capital Corp.
Total Commercial Paper
(Cost--$115,334) 115,339
Corporate Notes--2.8%
Associates 1,000 6.375 6/15/2000 1,000
Corporation of
North America
Ford Motor Credit 1,500 7.50 4/06/2000 1,508
Company
SMM Trust 1999-H 5,000 5.594++ 9/25/2000 5,000
Total Corporate Notes
(Cost--$7,514) 7,508
Summit Cash Reserves Fund
November 30, 1999
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
Funding Agreements--1.1%
General Electric $ 2,000 5.49++ % 9/01/2000 $ 2,000
Life and Annuity
Jackson 1,000 5.50++ 2/01/2000 1,000
National Life
Insurance Co.
Total Funding Agreements
(Cost--$3,000) 3,000
Medium-Term Notes--22.7%
AT&T Capital 3,950 7.50 11/15/2000 3,979
Corporation
Associates 1,000 6.00 6/15/2000 998
Corporation of 2,000 5.90 6/23/2000 1,997
North America
Bear Stearns 3,000 5.693++ 1/20/2000 3,000
Companies, Inc.
The CIT Group 3,200 6.70 5/02/2000 3,208
Holdings, Inc. 2,000 5.655++ 5/30/2000 1,999
Caterpillar Inc. 6,000 6.228++ 1/20/2000 6,002
Deutsche Bank 1,000 5.397++++ 2/01/2000 990
AG, NY 1,150 7.00 7/10/2000 1,154
Finova Capital 2,000 6.45 6/01/2000 1,999
Corp.
Ford Motor Credit 2,500 6.375 4/03/2000 2,501
Company 1,000 5.70++ 5/05/2000 1,000
4,000 5.499++ 10/02/2000 3,998
General Electric 3,000 5.39++ 5/12/2000 3,000
Capital Corp.
General Motors 2,000 6.141++ 2/03/2000 2,000
Acceptance Corp. 1,000 6.875 7/17/2000 1,005
2,000 6.158++ 7/20/2000 1,999
8,000 5.493++ 9/01/2000 7,996
Face Interest Maturity
Issue Amount Rate* Date Value
Medium-Term Notes (concluded)
Goldman Sachs $ 2,000 6.00 % 8/07/2000 $ 1,992
Group, Inc.
Household Finance 2,000 6.975 6/07/2000 2,007
Corp.
Norwest Financial Inc. 4,000 5.425++ 9/07/2000 3,998
Toronto-Dominion 300 6.50 3/27/2000 300
Bank, NY
Wells Fargo & Co. 1,000 5.225 4/10/2000 998
Xerox Corp. 2,000 5.70 7/26/2000 1,995
Total Medium-Term Notes
(Cost--$60,166) 60,115
US Government, Agency & Instrumentality
Obligations--Non-Discount--3.4%
Federal Home 2,000 5.716++ 7/14/2000 1,998
Loan Banks
Student Loan 2,000 6.005++ 2/14/2000 2,000
Marketing Association 5,000 6.005++ 9/29/2000 4,999
Total US Government, Agency & Instrumentality
Obligations--Non-Discount (Cost--$8,998) 8,997
Repurchase Agreements**--6.6%
Face
Amount Issue
$17,408 PaineWebber Inc., purchased on 11/30/1999
to yield 5.60% to 12/01/1999 17,408
Total Repurchase Agreements (Cost--$17,408) 17,408
Total Investments (Cost--$267,514)--101.0% 267,382
Liabilities in Excess of Other Assets--(1.0%) (2,610)
--------
Net Assets--100.0% $264,772
========
[FN]
*Commercial Paper and certain US Government, Agency &
Instrumentality Obligations are traded on a discount basis. The
interest rates shown reflect the discount rates paid at the time of
purchase by the Fund. Other securities bear interest at the rates
shown, payable at fixed dates through maturity. The interest rates
on variable rate securities are adjusted periodically based on
appropriate indexes. The interest rates shown are the rates in
effect at November 30, 1999.
**Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
++Variable Rate Notes.
++++Represents a zero coupon bond; the interest rate shown reflects
the effective yield at the time of purchase by the Fund.
See Notes to Financial Statements.
Summit Cash Reserves Fund
November 30, 1999
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of November 30, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$267,513,670*) $267,381,989
Cash 35,079
Receivables:
Interest $ 1,917,889
Beneficial interest sold 1,311,532 3,229,421
------------
Prepaid registration fees 114,216
------------
Total assets 270,760,705
------------
Liabilities: Payables:
Securities purchased 4,006,334
Beneficial interest redeemed 1,596,203
Dividends to shareholders 164,801
Distributor 116,369
Investment adviser 6,511 5,890,218
------------
Accrued expenses and other liabilities 98,735
------------
Total liabilities 5,988,953
------------
Net Assets: Net assets $264,771,752
============
Net Assets Class A Shares of beneficial interest, $.10 par value, unlimited number of
Consist of: shares authorized $ 7,798,389
Class B Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized 18,691,954
Paid-in capital in excess of par 238,413,090
Unrealized depreciation on investments--net (131,681)
------------
Net assets $264,771,752
============
Net Asset Class A--Based on net assets of $77,949,252 and 77,983,894 shares of
Value: beneficial interest outstanding $ 1.00
============
Class B--Based on net assets of $186,822,500 and 186,919,539 shares of
beneficial interest outstanding $ 1.00
============
<FN>
*Cost for Federal income tax purposes. As of November 30, 1999, net
unrealized depreciation for Federal income tax purposes amounted to
$131,681, of which $15,028 related to appreciated securities and
$146,709 related to depreciated securities.
See Notes to Financial Statements.
</TABLE>
Summit Cash Reserves Fund
November 30, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
November 30, 1999
<S> <S> <C> <C>
Investment Income: Interest and amortization of premium and discount earned $ 6,331,107
Expenses: Distribution fees--Class B $ 666,262
Investment advisory fees 586,586
Registration fees 53,064
Printing and shareholder reports 48,585
Transfer agent fees--Class B 47,353
Professional fees 39,897
Transfer agent fees--Class A 12,355
Trustees' fees and expenses 11,970
Custodian fees 11,210
Accounting services 6,765
Other 9,343
------------
Total expenses before reimbursement 1,493,390
Reimbursement of expenses (87,218)
------------
Total expenses after reimbursement 1,406,172
------------
Investment income--net 4,924,935
------------
Realized & Realized loss on investments--net (298)
Unrealized Loss on Change in unrealized depreciation on investments--net (95,567)
Investments--Net: ------------
Net Increase in Net Assets Resulting from Operations $ 4,829,070
============
See Notes to Financial Statements.
</TABLE>
Summit Cash Reserves Fund
November 30, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
For the Six For the Year
Months Ended Ended
November 30, May 31,
Increase (Decrease) in Net Assets: 1999 1999
<S> <S> <C> <C>
Operations: Investment income--net $ 4,924,935 $ 4,370,063
Realized gain (loss) on investments--net (298) 480
Change in unrealized depreciation on investments--net (95,567) (36,114)
------------ ------------
Net increase in net assets resulting from operations 4,829,070 4,334,429
------------ ------------
Dividends & Investment income--net:
Distributions to Class A (1,360,339) (1,258,531)
Shareholders: Class B* (3,564,298) (3,111,532)
Realized gain on investments--net:
Class A -- (120)
Class B* -- (360)
------------ ------------
Net decrease in net assets resulting from
dividends and distributions to shareholders (4,924,637) (4,370,543)
------------ ------------
Beneficial Net increase in net assets derived from beneficial
Interest interest transactions 41,537,209 223,113,472
Transactions: ------------ ------------
Net Assets: Total increase in net assets 41,441,642 223,077,358
Beginning of period 223,330,110 252,752
------------ ------------
End of period $264,771,752 $223,330,110
============ ============
<FN>
*Class B Shares commenced operations on October 9, 1998.
See Notes to Financial Statements.
</TABLE>
Summit Cash Reserves Fund
November 30, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights
<CAPTION>
Class A
For the
Six
The following per share data and ratios have been derived Months
from information provided in the financial statements. Ended
Nov. 30, For the Year Ended May 31,
Increase (Decrease) in Net Asset Value: 1999 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .0239 .0556 .0531 .0432 .0476
Realized and unrealized gain (loss) on
investments--net (.0004) (.0004) -- .0001 (.0011)
-------- -------- -------- -------- --------
Total from investment operations .0235 .0552 .0531 .0433 .0465
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.0239) (.0556) (.0531) (.0431) (.0476)
Realized gain on investments--net -- --++ -- -- --++
-------- -------- -------- -------- --------
Total dividends and distributions (.0239) (.0556) (.0531) (.0431) (.0476)
-------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total investment return 4.74%* 5.71% 5.36% 4.40% 4.95%
======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .62%* .34% .00% 1.38% 1.13%
Net Assets: ======== ======== ======== ======== ========
Expenses .70%* 1.04% 72.77% 1.97% 1.13%
======== ======== ======== ======== ========
Investment income and realized gain
(loss) on investments--net 4.78%* 4.75% 5.30% 4.18% 4.83%
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 77,949 $ 56,512 $ 253 $ 240 $ 34,865
Data: ======== ======== ======== ======== ========
<FN>
*Annualized.
++Amount is less than $.0001 per share.
See Notes to Financial Statements.
</TABLE>
Summit Cash Reserves Fund
November 30, 1999
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights (concluded)
<CAPTION>
Class B
For the Six For the Period
The following per share data and ratios have been derived Months October 9,
from information provided in the financial statements. Ended 1998++ to
November 30, May 31,
Increase (Decrease) in Net Asset Value: 1999 1998
<S> <S> <C> <C>
Per Share Net asset value, beginning of period $ 1.00 $ 1.00
Operating ------------ ------------
Performance: Investment income--net .0200 .0260
Realized and unrealized loss on investments--net (.0004) (.0002)
------------ ------------
Total from investment operations .0196 .0258
------------ ------------
Less dividends and distributions:
Investment income--net (.0200) (.0260)
Realized gain on investments--net -- --+++
------------ ------------
Total dividends and distributions (.0200) (.0260)
------------ ------------
Net asset value, end of period $ 1.00 $ 1.00
============ ============
Total investment return 3.98%* 4.12%*
============ ============
Ratios to Average Expenses, net of reimbursement 1.39%* 1.10%*
Net Assets: ============ ============
Expenses 1.47%* 1.46%*
============ ============
Investment income and realized gain (loss) on investments--net 4.03%* 3.99%*
============ ============
Supplemental Net assets, end of period (in thousands) $ 186,823 $ 166,818
Data: ============ ============
<FN>
*Annualized.
++Commencement of operations.
+++Amount is less than $.0001 per share.
See Notes to Financial Statements.
</TABLE>
Summit Cash Reserves Fund
November 30, 1999
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
that comprises a series of separate portfolios offering a separate
class of shares to select groups of purchasers. The Fund is
currently the only operating series of the Trust. The Fund's
financial statements are prepared in accordance with generally
accepted accounting principles, which may require the use of
management accruals and estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of
management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. Both classes of shares have equal voting,
dividend, liquidation and other rights, except that only shares of
the respective classes are entitled to vote on matters concerning
only that class and Class B Shares bear certain expenses related to
the distribution of such shares. The following is a summary of
significant accounting policies followed by the Fund.
(a) Valuation of investments--Portfolio securities with remaining
maturities of greater than sixty days, for which market quotations
are readily available, are valued at market value. As securities
transition from sixty-one to sixty days 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. Securities maturing sixty days or less from their date of
acquisition are valued at amortized cost, which approximates market
value. For the 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. Other investments for which market
quotations are not readily available are valued at their fair value
as determined in good faith by or under the direction of the Fund's
Board of Trustees.
(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.
(e) Repurchase agreements--The Fund invests in money market
securities pursuant to repurchase agreements. Under such agreements,
the counterparty 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. If the counterparty defaults and
the fair value of the collateral declines, liquidation of the
collateral by the Fund may be delayed or limited.
(f) Dividends and distributions to shareholders--The Fund declares
dividends daily and reinvests monthly such dividends (net of non-
resident alien tax and back-up withholding tax) in additional fund
shares at net asset value. Dividends and distributions 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 Management Agreement with
Fund Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner. The Fund has entered into a Distribution Agreement
and Distribution Plan with Princeton Funds Distributor, Inc. ("PFD"
or the "Distributor"), which is a wholly-owned subsidiary of Merrill
Lynch Group, Inc.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities and equipment to
provide such services to the Fund. FAM also performs certain
administrative services necessary for the operation of the Trust and
the Fund. For such services, FAM receives a fee from the Fund at the
end of each month at the annual rate of .50% of the average daily
net assets of the Fund. For the six months ended November 30, 1999,
FAM earned fees of $586,586, of which $87,218 was waived.
Summit Cash Reserves Fund
November 30, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
Pursuant to the Distribution Plan adopted by the Fund in accordance
with Rule 12b-1 under the investment Company Act of 1940, the Fund
pays the Distributor an ongoing distribution fee accrued daily and
paid monthly at the annual rate of .75% of the Fund's average daily
net assets attributable to Class B Shares. This fee may be used to
help defray the expenses associated with marketing activities and
services related to Class B Shares.
For the six months ended November 30, 1999, MLPF&S received
contingent deferred sales charges of $11,669 and $458,374 relating
to transactions in Class A and Class B Shares, respectively.
Financial Data Services, Inc. ("FDS"), 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, PFD, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
Net increase in net assets derived from beneficial interest
transactions were $41,537,209 and $223,113,472 for the the six
months ended November 30, 1999 and the year ended May 31, 1999,
respectively.
Transactions in shares of beneficial interest for each class were as
follows:
Class A Shares for the
Six Months Ended Dollar
November 30, 1999 Shares Amount
Shares sold 111,590,067 $111,590,067
Shares issued to share-
holders in reinvestment
of dividends 1,074,344 1,074,344
------------ ------------
Total issued 112,664,411 112,664,411
Shares redeemed (91,202,510) (91,202,510)
------------ ------------
Net increase 21,461,901 $ 21,461,901
============ ============
Class A Shares for the Dollar
Year Ended May 31, 1999 Shares Amount
Shares sold 294,469,397 $294,469,397
Shares issued to share-
holders in reinvestment
of dividends and
distributions 948,339 948,339
------------ ------------
Total issued 295,417,736 295,417,736
Shares redeemed (239,148,496) (239,148,496)
------------ ------------
Net increase 56,269,240 $ 56,269,240
============ ============
Class B Shares for the
Six Months Ended Dollar
November 30, 1999 Shares Amount
Shares sold 187,835,961 $187,835,961
Shares issued to share-
holders in reinvestment
of dividends 3,074,926 3,074,926
------------ ------------
Total issued 190,910,887 190,910,887
Shares redeemed (170,835,579) (170,835,579)
------------ ------------
Net increase 20,075,308 $ 20,075,308
============ ============
Class B Shares for the Period
October 9, 1998++ to Dollar
May 31, 1999 Shares Amount
Shares sold 380,085,530 $380,085,530
Shares issued to share-
holders in reinvestment
of dividends and
distributions 2,716,668 2,716,668
------------ ------------
Total issued 382,802,198 382,802,198
Shares redeemed (215,957,966) (215,957,966)
------------ ------------
Net increase 166,844,232 $166,844,232
============ ============
[FN]
++Prior to October 9, 1998 (commencement of operations), the Fund
issued 10,000 shares to MLAM for $10,000.
4. Capital Loss Carryforward:
At May 31, 1999, the Fund had a net capital loss carryforward of
approximately $5,000, of which $4,000 expires in 2004 and $1,000
expires in 2005. This amount will be available to offset like
amounts of any future taxable gains.
Summit Cash Reserves Fund
November 30, 1999
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
Joe Grills, Trustee
Walter Mintz, Trustee
Robert S. Salomon Jr., Trustee
Melvin R. Seiden, Trustee
Stephen B. Swensrud, Trustee
Arthur Zeikel, Trustee
Kevin J. McKenna, Senior Vice President
Joseph T. Monagle Jr., Senior Vice President
Robert Sabatino, Vice President
Donald C. Burke, Vice President and Treasurer
Robert Harris, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, NY 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210
