<PAGE>
SEMI-ANNUAL REPORTS (UNAUDITED) MARCH 31, 2000
SG COWEN STANDBY RESERVE
FUND, INC.
AND
SG COWEN STANDBY TAX-EXEMPT
RESERVE FUND, INC.
[LOGO]
[LOGO]
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC.
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
SEMI-ANNUAL FINANCIAL STATEMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
Chairman's Letter .......................................... 1
Statements of Investments:
SG Cowen Standby Reserve Fund, Inc. ...................... 3
SG Cowen Standby Tax-Exempt Reserve Fund, Inc. ........... 7
Statements of Assets and Liabilities ....................... 18
Statements of Operations ................................... 19
Statements of Changes in Net Assets ........................ 20
Notes to Financial Statements .............................. 21
</TABLE>
<PAGE>
CHAIRMAN'S LETTER MAY 12, 2000
DEAR SHAREHOLDER:
We are pleased to report that the SG Cowen Standby Reserve Fund and the SG
Cowen Standby Tax-Exempt Reserve Fund produced yields that were higher than
their peer group averages throughout the semi-annual period ended March 31,
2000. As of that date, the annualized 7-day yields were 5.40% and 3.26%,
respectively. In comparison, the IBC Taxable First Tier Index and the IBC
Tax-Free Fund Index, which represents peer group averages, reflected 7-day
yields of 5.29% and 3.14%.
MARKET ACTIVITY
The Federal Reserve Board raised short-term interest rates three times during
the period on November 16, February 2 and March 21 for a total of 0.75%. The Fed
might have also raised rates during its December 1999 meeting, but they were
concerned about the impact of lower liquidity as Y2K approached. Ultimately, Y2K
turned out to be a non-event, and credit markets were not disrupted.
Despite the Fed's efforts, the U.S. economy continued to be extremely strong.
Gross Domestic Product rose at an annualized rate of 7.3% during the fourth
quarter of 1999, followed by 5.4% during the first quarter of 2000. This type of
growth has led to inflationary fears. Indeed, recent data confirms that a
moderate amount of inflation may be returning.
Because the unemployment rate is so low, wage pressures appear to be building.
During the first quarter of 2000, the Employment Cost Index rose by 1.4%, a
significant increase. In addition, the twelve-month trend for the Producer Price
Index was up 4.6% while the Consumer Price Index rose 3.7%. These increases are
causing concern, suggesting that the Fed's recent moves may not have been
aggressive enough.
INVESTMENT REVIEW
Because we recognize that investors in money market funds are concerned about
safety and liquidity, we manage both funds in a very conservative manner. The SG
Cowen Standby Reserve Fund invests in high-rated categories of commercial paper,
certificates of deposit and floating rate notes. The SG Cowen Standby Tax-
Exempt Reserve Fund invests in top-rated tax-exempt and floating rate notes.
We do not search for higher returns by lowering our credit standards. Instead,
we attempt to enhance returns by shortening and lengthening the funds'
maturities at opportune times. For most of November and December, the SG Cowen
Standby Reserve Fund's average maturity was shorter than the index, correctly
anticipating the rise in interest rates. However, the closer we came to
year-end, the more we were receiving incentives by issuers concerned about Y2K
to lengthen money out into the New Year. In addition, in February, one-year CD
levels were very attractive to us, even though we believed that interest rates
would continue to rise. Since our average maturity was shorter than the index,
we were able to purchase some one-year CDs, picking up yield without extending
our maturities beyond the average. This was instrumental in allowing the Fund to
outperform its index.
The SG Cowen Standby Tax-Exempt Reserve Fund's average maturity was also
generally shorter than its index. As of March 31, 2000, the SG Cowen Standby
Tax-Exempt Reserve Fund's average maturity was 22
1
<PAGE>
days, compared to 36 days for its index. On that date, the SG Cowen Standby
Reserve Fund's average maturity was 34 days, compared to 51 days for its index.
Both funds' short maturities at March 31 reflected additional anticipated Fed
actions to raise rates.
LOOKING AHEAD
For several years, Fed Chairman Alan Greenspan has been warning the markets
about his concern for increased labor costs. Today, we see that these concerns
are valid, with the Employment Cost Index jumping 4.3% for the 12-months ended
March 31, 2000 versus 3.0% a year ago, confirming the recent increase in average
hourly wages. Strong consumer confidence, and the increase in CPI and PPI
numbers are fuel for an additional Fed tightening. We believe that the Fed will
continue to increase interest rates. Therefore, we will continue purchasing
shorter-dated securities, while still looking for value in longer-dated paper.
As always, we appreciate your investment in the SG Cowen Standby Reserve
Funds. We look forward to continuing to serve your investment needs in the
future.
Sincerely,
[LOGO]
Philippe H. Collas
Chairman
2
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC.
STATEMENT OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF ANNUALIZED VALUE
AMOUNT SECURITY YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
COMMERCIAL PAPER - 84.01%
Abbey National Treasury
$27,000,000 06-27-2000 6.18% $ 26,611,763
Akzo Nobel, Inc.
19,500,000 04-20-2000 6.01 19,439,691
32,500,000 05-02-2000 6.01 32,336,001
American Express Co.
33,000,000 04-26-2000 6.15 32,862,042
American General Finance
35,000,000 04-03-2000 5.96 34,988,625
45,000,000 04-17-2000 5.98 44,883,200
American Home Products
20,000,000 04-10-2000 5.96 19,970,850
Associates Corp of North America
13,000,000 04-03-2000 6.31 12,995,522
50,000,000 04-03-2000 6.34 49,982,694
BMW U.S. Capital
36,000,000 04-06-2000 5.93 35,971,250
35,000,000 04-06-2000 6.07 34,971,076
Bell Atlantic Financial Services
20,000,000 04-07-2000 5.94 19,980,667
Cargill Inc.
35,000,000 04-03-2000 6.36 34,987,847
40,000,000 04-27-2000 6.00 39,831,000
CIT Group Inc.
22,000,000 04-05-2000 5.91 21,985,896
35,000,000 06-06-2000 6.12 35,000,000
DaimlerChrysler North American Holding
Corp.
40,000,000 05-10-2000 6.06 40,000,000
Deere & Co.
40,000,000 04-24-2000 6.13 39,846,667
30,000,000 05-10-2000 6.06 30,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF ANNUALIZED VALUE
AMOUNT SECURITY YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
Ford Motor Credit Co.
$50,000,000 05-05-2000 6.04% $ 50,000,000
General Electric Capital Corp.
25,000,000 04-10-2000 5.98 24,963,500
40,000,000 05-17-2000 6.04 40,000,000
General Motors Acceptance Corp.
35,000,000 04-24-2000 6.02 35,000,000
20,000,000 05-09-2000 6.03 20,000,000
Goldman Sachs Group Inc.
50,000,000 04-11-2000 5.96 49,919,167
20,000,000 05-24-2000 6.11 19,825,394
HJ Heinz
28,000,000 04-11-2000 5.94 27,954,889
38,000,000 04-20-2000 5.97 37,883,076
Household Finance Corp.
50,000,000 04-05-2000 5.88 49,968,111
30,000,000 04-06-2000 6.14 29,974,917
International Business Machines Corp.
37,000,000 04-04-2000 5.94 36,982,086
32,000,000 04-18-2000 5.94 32,000,000
Koch Industries
75,000,000 04-03-2000 6.35 74,974,000
Merrill Lynch & Co. Inc.
40,000,000 04-03-2000 6.01 39,987,000
26,000,000 05-10-2000 6.09 25,833,253
Met Life Funding Inc.
50,000,000 04-06-2000 6.09 49,958,542
JP Morgan & Co.
23,500,000 05-22-2000 6.00 23,309,239
Phillip Morris Co. Inc.
42,000,000 04-11-2000 6.13 41,929,883
Prudential Funding Corp.
20,000,000 04-17-2000 5.97 19,948,178
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF ANNUALIZED VALUE
AMOUNT SECURITY YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
Sharp Electronics
$35,000,000 04-03-2000 6.04% $ 34,988,528
TransAmerica Finance Corp.
30,000,000 06-21-2000 6.21 29,595,675
Union Bank of Switzerland
75,000,000 04-03-2000 6.36 74,973,958
Wal-Mart Stores, Inc.
30,000,000 04-03-2000 5.97 29,990,250
40,000,000 04-03-2000 6.11 39,986,667
--------------
Total Commercial Paper
(Cost $1,546,591,104) $1,546,591,104
--------------
FLOATING RATE NOTES - 5.70%
American Express Centurion
25,000,000 02-14-2001 5.95(a) $ 25,000,000
AT&T Corp.
30,000,000 07-13-2000 5.99(a) 29,998,269
Bear Stearns Companies, Inc.
30,000,000 09-14-2000 6.77(c) 30,000,000
GTE Corp
20,000,000 05-30-2000 6.02(b) 19,996,200
--------------
Total Floating Rate Notes
(Cost $104,994,469) $ 104,994,469
--------------
MEDIUM TERM NOTES - 1.63%
Morgan Guaranty Trust Co. of NY
30,000,000 06-02-2000 5.40 $ 30,000,000
--------------
Total Medium Term Notes
(Cost $30,000,000) $ 30,000,000
--------------
YANKEE CERTIFICATES OF DEPOSIT - 8.23%
ABN Amro Bank NV Chicago
23,000,000 12-18-2000 6.72 $ 22,991,464
18,500,000 03-02-2001 6.26 18,493,699
Deutsche Bank NY
30,000,000 05-18-2000 5.25 29,998,142
25,000,000 01-22-2001 6.54 24,990,370
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF ANNUALIZED VALUE
AMOUNT SECURITY YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
Nat West Bank PLC NY
$25,000,000 01-18-2001 6.52% $ 24,992,395
Rabobank Nederland NV NY
30,000,000 04-25-2000 5.09 29,999,050
--------------
Total Yankee Certificates of Deposit
(Cost $151,465,120) $ 151,465,120
--------------
</TABLE>
<TABLE>
<C> <S> <C> <C> <C>
TOTAL INVESTMENTS
(Cost $1,833,050,693)....... 99.57% $1,833,050,693
Cash and Receivables, Less
Liabilities................. 0.43 7,971,332
------- --------------
Net Assets.................. 100.00% $1,841,022,025
======= ==============
</TABLE>
- -------------
<TABLE>
<C> <S>
Notes:
(a) - 1 Month Libor rate instruments reflect rate as of 03-31-2000
(b) - 3 Month Libor rate instruments reflect rate as of 03-31-2000
(c) - Daily Federal Funds rate instruments reflect rate as of
03-31-2000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$ 200,000 Alabama Special Care Facility
Montgomery Hospital Floating Rate
Demand Note
Series 1985
(7-Day Put, 7-Day Change)
04-01-2015 3.85%# $ 200,000
2,000,000 Alaska State Industrial Development
Authority Lot 6
(7-Day Put, 7-Day Change)
07-01-2001 4.40 # 2,000,000
9,915,000 Allegheny County, PA Industrial
Development Authority Pollution
Control Revenue Bonds, Series C
(Daily Put, Daily Change)
07-01-2027 4.00 # 9,915,000
2,000,000 Austin, TX Utility Revenue Bonds
Series A
04-06-2000 3.70 2,000,000
2,900,000 Baltimore County, MD Metropolitan
District Revenue Bonds
Tax Exempt Commercial Paper
Series 1995
06-01-2000 3.70 2,900,000
600,000 Bexar County, TX Housing Finance
Corporation Park Hill Project
Series 88-B
(7-Day Put, 7-Day Change)
06-01-2005 3.90 # 600,000
1,100,000 Billings, MT Industrial Development
Revenue Adjustable Tender Notes
(7-Day Put, 7-Day Change)
12-01-2014 3.85 # 1,100,000
1,300,000 Braxos River, TX Nav Dist Brazoria
County Revenue Bonds Series A
(Daily Put, Daily Change)
08-01-2022 4.15 # 1,300,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$ 650,000 Carrollton Texas Fmrs. Branch Indpt.
School District Pre-refunded to
02-15-2001 @ 100
02-15-2001 4.20% $ 662,656
1,000,000 Charlotte, NC Public Improvements
General
Obligation Series A
(Pre-refunded to 10-01-2000 @ 102)
10-01-2008 3.75 1,034,947
2,000,000 Cohasset, MN Revenue Bonds Minnesota
Power and Light Project Series B
(Daily Put, Daily Change)
06-01-2013 4.00 # 2,000,000
1,000,000 Converse County, WY PCR Series 1988
(Mandatory Put 06-01-2000)
01-01-2014 3.60 1,000,000
2,100,000 Cornell Township, MI Economic
Development Corporation Industrial
Development Revenue Bonds,
Series 1990
(Mandatory Put 04-03-2000)
03-01-2015 3.45 2,100,000
5,000,000 Cuyahoga County Ohio Hospital Revenue
Cleveland Clinic - D
(Daily Put, Daily Change)
01-01-2026 4.00 # 5,000,000
800,000 DeKalb Private Hospital Authority,
Georgia, (Egleston Children's Hospital
at Emory University, Inc. Project)
Revenue Anticipation Certificates
Series 1994A
(7-Day Put, 7-Day Change)
03-01-2024 3.85 # 800,000
1,800,000 DeKalb County, GA Pollution Control
Revenue Bonds General Motors
Corporation Project
(7-Day Put, 7-Day Change)
11-01-2003 3.95%# 1,800,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$2,000,000 Delaware State Economic Development
Authority Industrial Development
Revenue Bonds Delmarva Power & Light
Co Gas Facilities Project C
(7-Day Put, 7-Day Change)
10-01-2028 3.95%# $ 2,000,000
1,500,000 Delaware Valley, PA Regional Finance
Authority Local Government Revenue
Bonds Series A
(7-Day Put, 7-Day Change)
12-01-2017 3.85 # 1,500,000
1,700,000 Delaware Valley, PA Regional Finance
Authority Local Government Revenue
Bonds Series A
(7-Day Put, 7-Day Change)
12-01-2019 3.85 # 1,700,000
800,000 District of Columbia General
Obligation Note Series B
(Pre-refunded to 06-01-2000 @ 102)
06-01-2000 3.80 820,696
1,550,000 District of Columbia, General Fund
Recovery B-2
(Daily Put, Daily Change)
06-01-2003 4.10 # 1,550,000
1,000,000 District of Columbia, Revenue Bonds,
The American University Issue,
Series 1985A
(7-Day Put, 7-Day Change)
10-01-2015 3.90 # 1,000,000
1,095,000 District of Columbia, Revenue Bonds,
The American University Issue,
Series 1986A
(7-Day Put, 7-Day Change)
12-01-2015 3.90 # 1,095,000
2,400,000 Fayetteville, AR Public Facilities
Revenue, Butterfield Trail
(Daily Put, Daily Change)
09-01-2027 4.00 # 2,400,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$1,230,000 Florida Housing Finance
Agency-Reference Multi-Family Housing
EEE Carlton Project
(7-Day Put, 7-Day Change)
12-01-2008 3.95%# $ 1,230,000
1,100,000 Fort Worth, TX City GO General Purpose
Series B
05-01-2000 3.60 1,100,000
850,000 Fulton County, GA Hospital Authority
Revenue Health System - Catholic
Health East - A
11-15-2000 4.15 851,764
2,500,000 Georgia State General Obligation Note
University and College Improvements
09-01-2000 3.68 2,536,186
1,000,000 Greensboro, NC General Obligation Note
Public Improvements-Sewer Project,
Series B
(7-Day Put, 7-Day Change)
04-01-2007 3.85 # 1,000,000
3,500,000 Gwinnett County, GA Hospital Revenue
Bonds Hospital System Project B
(7-Day Put, 7-Day Change)
09-01-2027 3.85 # 3,500,000
3,000,000 Harris County, TX Health Facilities
Hospital Revenue Bonds
(Daily Put, Daily Change)
03-01-2027 3.95 # 3,000,000
1,000,000 Honolulu, HI City and County
Tax-Exempt Commercial Paper
04-07-2000 3.60 1,000,000
4,000,000 Honolulu, HI City and County
Tax-Exempt Commericial Paper
06-14-2000 3.80 4,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$2,300,000 Illinois State Health Facility
Authority Hospital Revenue Bonds,
Decatur Memorial Hospital Project A
(7-Day Put, 7-Day Change)
11-15-2024 3.85%# $ 2,300,000
3,900,000 Illinois State Health Facility
Authority Hospital Revenue Bonds,
South Illinois Health Care Series B
(7-Day Put, 7-Day Change)
03-01-2021 3.90 # 3,900,000
1,000,000 Illinois State Sales Tax Revenue
Bonds, Series M
(Pre-refunded to 06-15-2000 @ 102)
06-15-2015 3.50 1,026,445
3,000,000 Indiana Municipal Power Agency, Power
Supply System Revenue Bonds, Series A
(7-Day Put, 7-Day Change)
01-01-2018 3.85 # 3,000,000
3,000,000 Intermountain Power Agency of Utah,
Electric Light and Power Improvements,
Power Supply Revenue Bonds
Series 1985-B
04-05-2000 3.60 3,000,000
3,000,000 Jefferson County, KY Pollution Control
Revenue Bonds Louisville Gas and
Electric Co. Project A
(Mandatory Put 04-06-2000)
09-01-2017 3.65 3,000,000
5,000,000 Jefferson Parish, LA Hospital Service
District #001 Hospital Revenue Bonds,
Jefferson Medical Center
(7-Day Put, 7-Day Change)
01-01-2026 3.90 # 5,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$2,700,000 La Cygne, KS Environmental Improvement
Revenue Notes, Kansas City Power and
Light Co. Project
(7-Day Put, 7-Day Change)
03-01-2015 4.00%# $ 2,700,000
1,500,000 Las Vegas, NV Water District Revenue
Bonds (Pre-refunded to 08-01-2000 @
102)
08-01-2009 3.60 1,546,143
2,300,000 Lone Star, TX Airport Improvements
Authority (Daily Put, Daily Change)
12-01-2014 4.10 # 2,300,000
2,000,000 Long Island, NY Power Authority, New
York Electric Systems Revenue Bonds,
Sub-Series 3
05-01-2000 3.80 2,000,000
3,900,000 Louisiana Public Facilities Authority
Multi Family Housing Revenue Bonds,
(Willis Knighton Medical Center
Project) Series 1988
(7-Day Put, 7-Day Change)
09-01-2023 4.00 # 3,900,000
1,000,000 Louisiana State General Obligation
Bond Series A
08-01-2000 3.67 1,007,544
1,200,000 Lynchburgh, VA Industrial Development
Authority Hospital Revenue Bonds, (VHA
Mid-Atlantic States, Inc. Capital
Asset Financing Project), Series 1985
(7-Day Put, 7-Day Change)
12-01-2025 3.95 # 1,200,000
2,900,000 Mankato, MN PCR Northern State Power
Authority
(7-Day Put, 7-Day Change)
03-01-2011 3.95 # 2,900,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$1,000,000 Maryland State General Obligation Bond
Public Improvements 2nd Series
08-01-2000 3.58% $ 1,003,789
650,000 Mason County, KY Pollution Control
Revenue Bonds Kentucky Power-National
Rural Electric Project B-1
(7-Day Put, 7-Day Change)
10-15-2014 3.95 # 650,000
400,000 Michigan State Strategic Limited Fund
Revenue Bond
(Daily Put, Daily Change)
12-01-2023 3.85 # 400,000
115,000 Michigan State Hospital Finance
Authority Revenue Bonds, Hospital
Equipment Loan Program
(7-Day Put, 7-Day Change)
06-01-2001 3.80 # 115,000
500,000 Michigan State Hospital Finance
Authority Revenue Bonds, Hospital
Equipment Loan Program
(7-Day Put, 7-Day Change)
12-01-2023 3.85 # 500,000
1,000,000 Michigan State Job Development
Authority Revenue Bonds, Gordon Food
Services Project
(7-Day Put, 7-Day Change)
08-01-2015 3.90 # 1,000,000
500,000 Missouri State Environmental
Improvement and Energy Research
Authority, Pollution Control Revenue
Bonds National Rural Utilities Project
(7-Day Put, 7-Day Change)
12-15-2003 3.95 # 500,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$3,000,000 Moffat County, CO Pollution Control
Revenue Bonds Colorado-Ute Electric
Authority Project
(7-Day Put, 7-Day Change)
07-01-2010 3.95%# $ 3,000,000
2,000,000 Montgomery County, PA IDA PCR
Series 1996A
(Mandatory Put 04-04-2000)
03-01-2034 3.80 2,000,000
4,665,000 Montgomery, AL Special Care Facilities
Authority Alabama VHA Series G
(7-Day Put, 7-Day Change)
12-01-2030 3.95 # 4,665,000
2,000,000 Municipal Electric Authority of
Georgia, Revenue Bonds Project One,
Series 1994 D
(7-Day Put, 7-Day Change)
01-01-2022 3.90 # 2,000,000
3,000,000 Municipal Electric Authority of
Georgia, Revenue Bonds Project One,
Series 1985 B
(Mandatory Put 04-05-2000)
01-01-2020 3.75 3,000,000
5,000,000 New Hampshire Higher Education
Facility Authority, Veterans Housing
Authority Revenue Bonds Series E
(7-Day Put, 7-Day Change)
12-01-2025 3.95 # 5,000,000
1,500,000 New York, NY General Obligation
Revenue Bonds Series 1994 H-3
(Mandatory Put 04-03-00)
08-01-2022 3.75 1,500,000
1,000,000 New York, NY General Obligation
Revenue Bonds Series B
(Daily Put, Daily Change)
10-01-2020 4.10 # 1,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$1,000,000 New York, NY City Muni Water Finance
Authority Water and Sewer Systems
(7-Day Put, 7-Day Change)
06-15-2025 4.10%# $ 1,000,000
2,800,000 New York State Environmental Quality
Revenue Bonds Tax Exempt Commercial
Paper Series 1986
04-10-2000 3.50 2,800,000
3,000,000 North Carolina Educational Facilities
Finance Agency Revenue Bonds, Elon
College Project
(7-Day Put, 7-Day Change)
01-01-2021 3.85 # 3,000,000
1,000,000 Person County, NC Industrial
Facilities and Pollution Control
Finance Authority Revenue-Carolina
Power and Light Project Series A
(7-day Put, 7-day Change)
11-01-2019 4.05 # 1,000,000
500,000 Philadelphia, PA Authority for Indl.
Development Institute Cancer Research
(Daily Put, Daily Change)
07-01-2013 3.95 # 500,000
4,000,000 Philadelphia, PA Hospitals and Higher
Education Facilities Children
Hospital, Series A
(Daily Put, Daily Change)
03-01-2027 3.95 # 4,000,000
3,000,000 Port of Seattle, Washington, Series A
04-07-2000 3.45 3,000,000
1,000,000 Portland, OR South Park Housing
Project Revenue Bonds Series A
(7-day Put, 7-day Change)
12-01-2011 3.90 # 1,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$2,000,000 St.Cloud, MN Health Care Facilities
Revenue Bonds St Cloud Hospital
Series A
(7-day Put, 7-day Change)
07-01-2027 3.85%# $ 2,000,000
3,800,000 Sunshine State, FL Government Finance
Commission Revenue Bonds, Series 1986
(Mandatory Put 06-12-2000)
07-01-2016 3.80 3,800,000
1,000,000 Sunshine State, FL Government Finance
Commission Revenue Bonds, Series 1986
04-11-2000 3.60 1,000,000
1,705,000 Tarrant County, TX Housing Finance
Corporation Revenue Bonds,
Multi-Family Housing-SF Apartments
(7-Day Put, 7-Day Change)
11-01-2017 3.95 # 1,705,000
3,000,000 Tennessee State School Bond Authority,
Series A
04-05-2000 3.55 3,000,000
575,000 Texas Higher Education
Authority, Inc. Series B
(7-Day Put, 7-Day Change)
12-01-2025 3.90 # 575,000
2,540,000 Texas State Public Finance Authority
General Obligation Bonds
(Pre-refunded to 10-01-2000 @ 100)
10-01-2001 3.75 2,570,231
1,200,000 University of North Carolina School of
Medicine and Ambulatory Care Clinic
Revenue Bonds
(7-Day Put, 7-Day Change)
07-01-2012 3.85 # 1,200,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
STATEMENT OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION OF BOND ANNUALIZED VALUE
AMOUNT YIELD ON DATE
OF PURCHASE
<C> <S> <C> <C>
$3,500,000 Wisconsin Health & Educational
Facilities Authority Revenue ACES,
Health Care Project A
(7-Day Put, 7-Day Change)
01-01-2027 3.85%# $ 3,500,000
2,000,000 Wisconsin State Health and Educational
Facilities Authority Revenue Bonds
Wheaton Franciscan Services
(7-Day Put, 7-Day Change)
08-15-2016 3.85 # 2,000,000
2,034,000 Wisconsin State Transportation Revenue
Notes Tax Exempt Commercial Paper
Series 1997-A
04-04-2000 3.75 2,034,000
2,010,000 Wisconsin State Transportation Revenue
Notes Tax Exempt Commercial Paper
Series 1997-A
04-11-2000 3.55 2,010,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C> <C>
TOTAL INVESTMENTS
(Cost $171,504,401)......... 99.64% $171,504,401
Cash and Receivables Less
Liabilities................. 0.36% 615,745
------- ------------
Net Assets.................. 100.00% $172,120,146
======= ============
</TABLE>
- -------------
<TABLE>
<C> <S>
Note: # - Variable Rate Instruments Reflect Rate As Of 03-31-2000
97.94% of the investment values above are supported by
Letters of Credit, guarantees or other credit enhancements
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SG COWEN STANDBY
SG COWEN STANDBY TAX-EXEMPT
RESERVE FUND, INC. RESERVE FUND, INC.
<S> <C> <C>
ASSETS
Investments in securities, at value - Note A
(1) $1,833,050,693 $171,504,401
Cash 2,709,284 20,331
Interest receivable 8,342,356 807,534
Prepaid expenses 98,534 24,413
-------------- ------------
TOTAL ASSETS 1,844,200,867 172,356,679
-------------- ------------
LIABILITIES
Due to investment manager - Note B 752,632 59,200
Accrued expenses 244,941 53,392
Dividends payable 2,181,269 123,941
-------------- ------------
TOTAL LIABILITIES 3,178,842 236,533
-------------- ------------
NET ASSETS $1,841,022,025 $172,120,146
============== ============
Represented By:
Paid-in capital $1,842,772,787 $172,138,688
Accumulated net realized loss on investments (1,750,762) (18,542)
-------------- ------------
NET ASSETS AT VALUE, applicable to 1,842,772,787
outstanding shares of $.01 par value Common
Stock for SRF and 172,138,688 outstanding
shares of $.001 par value Common Stock for STE
(2,000,000,000 and 1,000,000,000 shares
authorized for SRF and STE, respectively) -
Note C $1,841,022,025 $172,120,146
============== ============
Offering and redemption price per share $ 1.00 $ 1.00
============== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SG COWEN STANDBY
SG COWEN STANDBY TAX-EXEMPT
RESERVE FUND, INC. RESERVE FUND, INC.
<S> <C> <C>
INVESTMENT INCOME
Interest income $44,481,309 $2,926,097
----------- ----------
EXPENSES
Investment management fee - Note B 3,862,672 402,382
Shareholder servicing costs and custodian
fee 419,999 39,105
Federal and state registration fees 35,622 20,687
Professional fees 13,000 10,749
Directors' fees and expenses - Note B 10,896 10,896
Prospectus and shareholders' reports 59,998 9,500
Miscellaneous 38,822 5,109
----------- ----------
Total expenses 4,441,009 498,428
Less: investment management fee
waived - Note B - 80,476
----------- ----------
Net expenses 4,441,009 417,952
----------- ----------
Investment income - net 40,040,300 2,508,145
Net realized gain (loss) on investments - -
----------- ----------
Net Increase in Net Assets Resulting from
Operations $40,040,300 $2,508,145
=========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SG COWEN STANDBY
SG COWEN STANDBY TAX-EXEMPT
RESERVE FUND, INC. RESERVE FUND, INC.
------------------------------------------ ------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
2000 1999 2000 1999
------------------- ------------------- ------------------- -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
OPERATIONS
Investment income -
net $ 40,040,300 $ 70,156,295 $ 2,508,145 $ 4,921,775
Net realized loss on
investments - (36,935) - -
-------------- -------------- ------------ ------------
Net increase in net
assets resulting
from operations 40,040,300 70,119,360 2,508,145 4,921,775
DIVIDENDS TO
SHAREHOLDERS FROM
Investment income -
net (40,040,300) (70,156,295) (2,508,145) (4,921,775)
COMMON STOCK
TRANSACTIONS
(NET) - NOTE C 446,351,197 (80,931,200) 15,808,434 (61,752,478)
-------------- -------------- ------------ ------------
Total increase
(decrease) in net
assets 446,351,197 (80,968,135) 15,808,434 (61,752,478)
NET ASSETS
Beginning of period 1,394,670,828 1,475,638,963 156,311,712 218,064,190
-------------- -------------- ------------ ------------
End of period $1,841,022,025 $1,394,670,828 $172,120,146 $156,311,712
============== ============== ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC. AND
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
GENERAL. SG Cowen Standby Reserve Fund, Inc. ("SRF") and SG Cowen Standby
Tax-Exempt Reserve Fund, Inc. ("STE") are each separately registered under the
Investment Company Act of 1940, as amended ("Act"), as diversified, open-end
management companies. Until July 1, 1998, Cowen & Co. ("Cowen") served as
investment manager and principal underwriter to the above-referenced Funds (the
"Funds"). On July 1, 1998, Cowen's business was combined with Societe Generale
Securities Corporation ("SGSC"), a subsidiary of Societe Generale ("SG"), to
form SG Cowen Securities Corporation ("SG Cowen"). SG, a leading international
commercial and investment bank established in 1864, has a global network of
offices in over 80 countries. From July 1, 1998 through December 31, 1999 SG
Cowen through its SG Cowen Asset Management Division served as the investment
manager to the Funds, with the existing investment management personnel of Cowen
continuing to provide investment management services to the Funds. In January
2000 as a result of an internal reorganization, the SG Cowen Asset Management
Division of SG Cowen was transferred to SG Cowen Asset Management, Inc.
("SGCAM"). All officers and employees engaged in providing investment advisory
services to the Funds with SG Cowen have become officers and employees of SGCAM
and they will continue to provide the same services to the Funds. Since July 1,
1998 Funds Distributor, Inc. has served as principal underwriter to the Funds.
SG Cowen is also a selected dealer of the Funds' shares. Additionally, effective
as of July 1, 1998, the names of the Funds were changed, as indicated above, in
order to reflect the Funds' new management. It is each Fund's policy to maintain
a continuous net asset value per share of $1.00; each Fund has adopted certain
investment portfolio valuation and dividend and distribution policies to enable
it to do so.
The Funds' financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(1) PORTFOLIO VALUATION: Each Fund values its investments at amortized cost,
which has been determined by the Board of Directors of each Fund to represent
the fair value of each Fund's investments.
(2) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
including amortization of premiums and discounts, is recorded on the accrual
basis. Cost of investments represents amortized cost.
(3) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of each Fund
to declare dividends from net investment income on each business day; such
dividends are paid through the business day preceding the next to last Friday of
the month except for December. In December, income dividends will be paid
through the last business day of the month. Distributions from net realized
capital gains, if any, are declared and paid annually after the end of the
fiscal year in which earned. To the extent that net realized capital gains can
be offset by capital loss carryovers, it is the policy of each company not to
distribute such gains.
(4) FEDERAL INCOME TAXES: It is the policy of each Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the provisions available to
certain investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of taxable income sufficient to relieve
it from all, or substantially all, Federal income taxes.
21
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC. AND
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
(UNAUDITED)
At March 31, 2000, the aggregate cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting purposes
(see the Statements of Investments).
At September 30, 1999, SRF and STE had unused capital loss carryovers of
approximately $1,750,000 and $19,000, respectively, available for Federal income
tax purposes to be applied against future securities profits, if any. If not
applied, the carryovers expire in fiscal 2001, 2006, and 2007 and in fiscal
2000, 2001 and 2002, respectively.
NOTE B - INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH
AFFILIATES: Fees paid by each Fund to SGCAM pursuant to the provisions of
Investment Management Agreements are payable monthly, based on an annual rate of
.50 of 1%, of the average daily value of that Fund's net assets. Effective as of
June 1, 1998, the fee for SRF was reduced to .475% on net assets between $1.5
billion and $2.5 billion, and .45% on net assets above $2.5 billion. The
Agreements further provide that if the aggregate expenses of either Fund,
exclusive of interest, taxes, brokerage and, with the prior written
consent of the necessary state securities commissions, extraordinary expenses,
exceed the expense limitation of any state having jurisdiction over that Fund,
SGCAM will reimburse the Fund for such excess. There was no expense
reimbursement required for either Fund for the period ended March 31, 2000,
however, SGCAM has waived $80,476 of its investment management fee from STE
during such period.
Directors who are not officers, directors, partners, stockholders or employees
of SGCAM or its affiliates receive from each Fund a fee of $3,000 per annum plus
$500 per meeting attended and $375 for each audit committee meeting attended and
reimbursement for travel and out-of-pocket expenses.
NOTE C - COMMON STOCK TRANSACTIONS: At March 31, 2000, there were 2 billion
shares of $.01 par value Common Stock for SRF and 1 billion shares of $.001 par
value Common Stock of STE authorized.
Transactions in Common Stock were all at $1.00 per share and are summarized as
follows (000's omitted):
<TABLE>
<CAPTION>
SRF
--------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
<S> <C> <C>
Shares sold $ 4,916,105 $ 7,197,347
Dividends reinvested 39,179 71,487
----------- -----------
4,955,284 7,268,834
Shares redeemed (4,508,933) (7,349,765)
----------- -----------
Net increase
(decrease) $ 446,351 $ (80,931)
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
STE
--------------------------------------------------------------
YEAR
SIX MONTHS ENDED
ENDED SEPTEMBER 30,
MARCH 31, 2000 1999
<S> <C> <C>
Shares sold $ 392,004 $ 702,519
Dividends reinvested 2,483 5,079
--------- ---------
394,487 707,598
Shares redeemed (378,679) (769,350)
--------- ---------
Net increase
(decrease) $ 15,808 $ (61,752)
========= =========
</TABLE>
22
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC. AND
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
(UNAUDITED)
NOTE D - FINANCIAL HIGHLIGHTS: Selected data for a share of Common Stock
outstanding throughout each period:
<TABLE>
<CAPTION>
SRF
------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED ------------------------------------------------------------
MARCH 31, 2000 1999 1998 1997 1996 1995
------------------ ---------- ---------- ---------- ---------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM
INVESTMENT
OPERATIONS
Net Investment
Income 0.03 0.05 0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS
Dividends from Net
Investment Income (0.03) (0.05) (0.05) (0.05) (0.05) (0.05)
---------- ---------- ---------- ---------- ---------- --------
NET ASSET VALUE
End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ========
Total Return 5.20%(1) 4.67% 5.13% 4.98% 4.97% 5.23%
RATIOS / SUPPLEMENTAL
DATA
Net Assets (000
omitted) $1,841,022 $1,394,671 $1,475,639 $1,337,467 $1,101,944 $890,888
Ratio of Expenses
to Average Net
Assets 0.57%(1) 0.58% 0.65% 0.69% 0.71% 0.71%
Ratio of Net
Investment Income
to Average Net
Assets 5.17%(1) 4.58% 5.03% 4.89% 4.89% 5.13%
</TABLE>
23
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC. AND
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
(UNAUDITED)
NOTE D - (continued)
<TABLE>
<CAPTION>
STE
----------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED ----------------------------------------------------
MARCH 31, 2000 1999 1998 1997 1996 1995
---------------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM
INVESTMENT
OPERATIONS
Net Investment
Income 0.02 0.03 0.03 0.03 0.03 0.03
LESS DISTRIBUTIONS
Dividends from Net
Investment Income (0.02) (0.03) (0.03) (0.03) (0.03) (0.03)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE
End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return 3.12%(1) 2.70% 3.10% 3.11% 3.07% 3.19%
RATIOS / SUPPLEMENTAL
DATA
Net Assets (000
omitted) $172,120 $156,312 $218,064 $187,213 $171,055 $122,536
Ratio of Expenses
to Average Net
Assets* 0.52%(1) 0.53% 0.54% 0.56% 0.59% 0.61%
Ratio of Net
Investment Income
to Average Net
Assets* 3.10%(1) 2.65% 3.06% 3.07% 3.01% 3.14%
INVESTMENT ADVISORY
FEES WAIVED
Amount $ 80,476 $185,534 $197,675 $181,100 $156,993 $124,784
Ratio to Average
Net Assets 0.10%(1) 0.10% 0.10% 0.10% 0.10% 0.10%
</TABLE>
* NET OF WAIVER
(1) ANNUALIZED.
24
<PAGE>
SG COWEN STANDBY RESERVE FUND, INC.
AND
SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC.
560 Lexington Ave.
New York, NY 10022
DIRECTORS
<TABLE>
<S> <C> <C>
PHILIPPE H. COLLAS, Chairman
JAMES H. CAREY DR. MARTIN J. GRUBER BURTON J. WEISS
</TABLE>
OFFICERS
PHILIPPE H. COLLAS, CHAIRMAN OF THE BOARD OF DIRECTORS
HOAN NGUYEN-QUANG, PRESIDENT AND CHIEF EXECUTIVE OFFICER
PHILIP J. BAFUNDO, TREASURER AND CHIEF FINANCIAL OFFICER
RODD M. BAXTER, SECRETARY
ALAN E. KOEPPLIN, INVESTMENT OFFICER
GORDON G. IFILL, ASSISTANT INVESTMENT OFFICER
IRWOOD SCHLACKMAN, CONTROLLER
<TABLE>
<S> <C>
INVESTMENT ADVISER CUSTODIAN
SG Cowen Asset Management, Inc. State Street Bank and Trust Co.
560 Lexington Ave. P.O. Box 419111
New York, NY 10022 Kansas City, MO 64141
DISTRIBUTOR TRANSFER AGENT
Funds Distributor, Inc. DST, Inc.
60 State Street, Suite 1300 210 West 10th Street
Boston, MA 02109 Kansas City, MO 64105
LEGAL COUNSEL INDEPENDENT AUDITORS
Willkie Farr & Gallagher KPMG LLP
787 Seventh Avenue 757 Third Avenue
New York, NY 10019 New York, NY 10017
</TABLE>
CMB-RSRV-SEMI
