<PAGE>
SEMI ANNUAL REPORT
December 31, 1999
Prudential Securities
COMMAND Account
COMMAND Money Fund
COMMAND Government Fund
COMMAND Tax-Free Fund
(LOGO)
<PAGE>
Letter to Shareholders
February 3, 2000
Dear Shareholder:
Money market yields climbed sharply during the six months ended
December 31, 1999, as the Federal Reserve engineered two
short-term rate hikes to slow the pace of U.S. economic
growth. Yields also rose as banks and corporations raced
to issue money market securities in the summer and early
autumn of 1999. They wanted to avoid any potential year
2000 (Y2K) computer difficulties that might have arisen
at the turn of the calendar year. The trend toward higher
money market yields provided many good buying opportunities.
As a result, COMMAND Money, COMMAND Government, and COMMAND
Tax-Free Funds were able to offer competitive yields during
the first half of their fiscal year. For the seven-day
period ended December 31, 1999, COMMAND Tax-Free Fund
provided income equivalent to a 6.39% yield for investors
in the 39.6% tax bracket.
<TABLE>
FUND FACTS
As of 12/31/99
<CAPTION>
7 Day Net Asset Weighted Total Net
Current Yld. Value (NAV) Avg. Mat. (WAM) Assets (mil.)
<S> <C> <C> <C> <C>
COMMAND Money 5.49% $1.00 60 days $ 12,380.9
IBC Financial Data 5.15% $1.00 53 days N/A
General Purpose
Average1
COMMAND 4.96% $1.00 62 days $ 699.8
Government
IBC Financial Data 4.97% $1.00 49 days N/A
Government & Agency
Retail Average2
COMMAND 3.86% $1.00 56 days $ 1,359.3
Tax-Free3
IBC Financial Data 3.68% $1.00 44 days N/A
SB & GP Average4
</TABLE>
Note: Yields will fluctuate from time to time and
past performance is not indicative of future results.
An investment in the Funds is neither insured nor
guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
Although the Funds seek to preserve the value
of your investment at $1.00 per share, it is
possible to lose money by investing in the Funds.
1. This is the average seven-day current yield,
NAV, and WAM of all funds in the International
Business Communications (IBC) Financial Data all
taxable money fund category on December 28, 1999.
2. This is the average seven-day current yield,
NAV, and WAM of all funds in IBC Financial Data's
total government universe fund category on December 28, 1999.
3. Some investors may be subject to the federal alternative minimum tax.
4. This is the average seven-day current yield, NAV, and WAM of all
funds in IBC Financial Data's stock broker & general purpose
tax-free money fund category on December 27, 1999.
1
<PAGE>
Fund Objectives.
COMMAND Money Fund seeks high current income, preservation
of capital and maintenance of liquidity by investing in a
diversified portfolio of money market instruments maturing
in 13 months or less.
COMMAND Government Fund seeks high current income,
preservation of capital and maintenance of liquidity
by investing in a portfolio of U.S. government
securities maturing in 13 months or less.
COMMAND Tax-Free Fund seeks high current income
that is exempt from federal income taxes, consistent
with the maintenance of liquidity and preservation of
capital. The Fund invests in a diversified portfolio
of short-term, tax-exempt securities with maturities
of 13 months or less that are issued by states,
municipalities, and their agencies (or authorities).
Some securities may pay income subject to the federal
alternative minimum tax (AMT).
There can be no assurance that any of the Funds will
achieve their respective investment objectives.
Strategy Session.
The Fed tried to rein in U.S. economic growth.
Shortly after our six-month reporting period began in
July 1999, there was renewed concern that the U.S.
economy continued to grow rapidly enough to ignite
rising inflation. Even though inflationary pressures
remained relatively tame in 1999, investors were still
wary because of a tight job market and rising oil prices.
The Federal Reserve had hiked its main short-term interest
rate on June 30, 1999, to slow the economic expansion and
reduce economic imbalances that can lead to mounting
inflation. However, some investors believed the Fed
would soon have to act again.
They did not have long to wait. On August 24, 1999,
the Fed raised its federal funds rate (what U.S. banks
charge each other for overnight loans) by another quarter
of a percentage point to 5.25%. Investors had driven money
market yields higher in anticipation of this second change
in monetary policy, and yields continued to rise after the
Fed moved.
Y2K computer anxieties created buying opportunities.
Repeated changes in U.S. monetary policy were just one of
the concerns affecting money markets. Corporate treasurers,
among others, wanted to minimize any risk that computers
might malfunction or shut down at the end of the year as
their internal dates switched from 1999 to 2000. Accordingly,
some banks and corporations rushed to complete their year-end
borrowing early. For example, in the summer of 1999, they
began to issue an unusually large amount of money market
securities with interest rates that adjusted periodically
based on London Interbank Offered Rates. (LIBORs are widely
quoted money market yields.) These securities provided
attractive yield spreads in order to entice investors.
Similarly, adjustable-rate federal agency securities
were also offered with unusually wide yield spreads.
We positioned COMMAND Money Fund and COMMAND Government
Fund to take advantage of the rise in money market yields.
COMMAND Money Fund increased its exposure to bank and
corporate securities whose interest rates reset either
monthly or quarterly, based on appropriate LIBORs. These
securities rose to nearly 40% of COMMAND Money Fund's
total investments in late 1999--up from roughly 26% in
June 1999. These attractively priced floating-rate
securities should help COMMAND Money Fund to be
advantageously positioned heading into 2000.
2
<PAGE>
COMMAND Government Fund purchased federal agency
securities whose interest rates adjusted either
daily, weekly, or monthly. By the end of 1999,
they accounted for roughly 50% of COMMAND Government
Fund's total investments. Owning securities whose
rates reset frequently to higher levels enabled
COMMAND Government Fund to benefit more expediently
from the trend toward higher money market yields.
COMMAND Money Fund also bought bank and corporate
money market securities that paid fixed interest
rates and matured in six to seven months. At that
time, the structure of the "yield curve"--a graphic
depiction of money market yields from the shortest to
the longest securities--was such that securities
maturing in six to seven months represented the
best value. Yields on six- and seven-month securities
were considerably higher than yields on shorter-term
securities, but only slightly lower than yields on
nine-month and one-year securities.
Bridging over the "July effect".
Turning to the municipal money market, we had
positioned COMMAND Tax-Free Fund's weighted
average maturity (WAM) longer than that of
its competitive average. (WAM is a measurement
tool that determines a fund's sensitivity to
changes in the level of interest rates. It
takes into account the maturity level of each
security held by a fund.) Having a longer WAM
meant COMMAND Tax-Free Fund did not have to
invest during the seasonal decline in municipal
money market yields that typically occurs in early
July when investors race to reinvest money received
from coupon payments and maturing bonds. This time
the "July effect" was strong enough to temporarily
push municipal money market yields lower, even though
the Fed had just hiked the federal funds rate on June
30, 1999.
August brought a flood of newly issued municipal money
market securities that helped to push yields higher.
COMMAND Tax-Free Fund purchased tax-exempt commercial
paper and attractively priced one-year securities,
such as State of Texas tax and revenue anticipation
notes. These purchases lengthened COMMAND Tax-Free
Fund's WAM.
We had to make challenging choices.
As you recall, our decision to greatly increase the
exposure of COMMAND Government Fund and COMMAND Money
Fund to adjustable-rate securities was a sound,
long-term strategic move. However, this strategy
also meant we had less money to invest in the autumn
as money market yields rose both before and after the
federal funds rate was increased on November 16, 1999.
On that date, the Fed raised the rate another quarter
of a percentage point to 5.50%, reversing the last of
three rate cuts made during 1998.
COMMAND Tax-Free Fund faced a similar dilemma as the
other two funds. Its WAM remained longer than that of
its competition throughout the rest of 1999. Having a
longer WAM in October and early November left COMMAND
Tax-Free Fund with less money to invest in higher-yielding
securities that became available after the short-term rate
hike in mid-November. But we stuck with this strategy
through December because the longer WAM would help
insulate COMMAND Tax-Free Fund from the next major
seasonal decline in municipal money market yields
that typically occurs at the beginning of the new
year. (It is known as the "January effect.")
3
<PAGE>
Transition from 1999 to 2000 proceeded smoothly.
As 1999 drew to a close, some companies were willing to
pay a hefty yield to issue securities that would mature
after the new year began. Therefore, COMMAND Money Fund
was able to buy attractively priced commercial paper that
would mature in February 2000. COMMAND Government Fund
found good value among one-year federal agency securities.
As it turned out, the financial markets did not experience
any major computer problems and few glitches arose elsewhere.
During the last few days of 1999, COMMAND Tax-Free Fund
benefited from buying attractively priced, tax-exempt
floating-rate securities that offered yields one to two
percentage points higher than normal. They had cheapened
amid the usual sell-off that occurs as portfolio managers
unload securities to raise cash to satisfy their
shareholders' liquidity needs. During this time,
many Wall Street firms that wanted to lighten their
inventories also offered securities at "fire sale"
prices.
Looking Ahead.
We expect more short-term rate hikes.
Continued heavy spending by consumers and a strong
domestic labor market have heightened the risk of
rising inflation in the U.S. economy. Therefore,
we expect the Fed to tighten monetary policy on more
than one occasion during 2000.
Sincerely,
John R. Strangfeld
President
COMMAND Money Fund
COMMAND Government Fund
COMMAND Tax-Free Fund
4
<PAGE>
COMMAND MONEY FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
Bank Notes--10.8%
American Express Centurion Bank
$ 122,000 5.13%, 1/10/00(a)..... $ 122,000,000
Bank of America N.A.
14,000 5.62%, 2/15/00........ 14,000,000
Comerica Bank N.A.
67,000 6.496%, 1/3/00(a)..... 66,968,603
115,000 6.361%, 1/13/00(a).... 114,966,880
First Union National
Bank
88,000 6.458%, 1/3/00(a)..... 88,000,000
69,000 6.444%, 1/10/00(a).... 69,000,000
138,000 6.198%, 1/19/00(a).... 138,000,000
129,000 5.571%, 1/21/00(a).... 129,000,000
First USA Bank
100,000 6.04%, 4/3/00......... 100,000,000
Key Bank N.A.
13,000 6.216%, 1/18/00(a).... 13,005,194
84,000 6.031%, 3/14/00(a).... 83,977,631
54,000 6.10%, 3/24/00(a)..... 53,987,195
Southtrust Bank N.A.
66,000 6.03%, 3/6/00......... 66,001,167
U.S. Bank N.A.
90,000 6.373%, 1/19/00(a).... 89,970,810
36,000 6.513%, 1/19/00(a).... 35,996,668
146,000 6.411%, 1/25/00(a).... 145,960,299
---------------
1,330,834,447
---------------
Certificates Of Deposit -
Domestic--2.2%
Chase Manhattan Bank
60,000 5.365%, 5/22/00....... 59,981,892
First National Bank of
Chicago
100,000 5.47%, 6/2/00......... 99,987,925
First Tennessee Bank
N.A.
111,000 5.85%, 2/29/00........ 111,000,000
---------------
270,969,817
---------------
Certificates Of Deposit - Yankee--11.6%
Bank Brussels Lambert
$ 5,000 6.03%, 3/3/00......... $ 4,999,779
Deutsche Bank
100,000 5.06%, 1/18/00........ 99,998,654
40,000 5.10%, 2/18/00........ 39,998,226
97,000 5.60%, 6/14/00........ 96,978,978
250,000 6.075%, 11/24/00...... 249,839,245
National Westminster
Bank PLC
33,200 6.10%, 11/27/00....... 33,137,256
Toronto Dominion Bank
23,000 5.06%, 2/10/00........ 22,999,028
23,000 5.13%, 2/17/00........ 23,000,000
UBS AG
152,000 5.08%, 1/18/00........ 151,997,954
150,000 5.16%, 2/28/00........ 149,990,821
120,000 5.29%, 5/18/00........ 119,973,824
150,000 5.29%, 5/19/00........ 149,967,043
68,000 6.38%, 12/20/00....... 67,968,618
Westpac Banking Corp.
179,000 6.514%, 1/4/00(a)..... 178,898,395
46,000 6.22%, 11/30/00....... 45,967,913
---------------
1,435,715,734
---------------
Commercial Paper--45.8%
Allianz Of America
Finance Corp.
20,000 5.94%, 3/8/00......... 19,778,900
11,800 5.75%, 5/18/00........ 11,539,908
23,400 5.75%, 5/19/00........ 22,880,487
Aon Corp.
70,000 6.10%, 2/4/00......... 69,596,722
71,520 6.10%, 2/11/00........ 71,023,135
Aristar, Inc.
10,000 6.25%, 1/27/00........ 9,954,861
11,930 6.05%, 3/2/00......... 11,807,701
</TABLE>
-5-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND MONEY FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
Commercial Paper--(cont'd.)
Associates First
Capital Corp.
$ 30,000 5.94%, 3/13/00........ $ 29,643,600
Banc One Financial
Corp.
21,000 5.94%, 3/28/00........ 20,698,545
73,604 5.95%, 3/29/00........ 72,533,471
BankAmerica Corp.
191,000 5.98%, 2/25/00........ 189,255,003
Barton Capital Corp.
99,000 6.20%, 1/20/00........ 98,676,050
8,222 6.95%, 1/21/00........ 8,190,254
115,599 6.05%, 2/25/00........ 114,530,512
Blue Ridge Asset
Funding Corp.
11,920 6.15%, 2/18/00........ 11,822,256
Bradford & Bingley
Building Society
25,000 5.95%, 3/6/00......... 24,731,424
Centric Capital Corp.
5,000 5.60%, 1/19/00........ 4,986,000
4,000 5.60%, 1/20/00........ 3,988,178
6,600 5.60%, 1/21/00........ 6,579,467
14,050 5.60%, 1/24/00........ 13,999,732
5,000 5.60%, 1/25/00........ 4,981,333
8,300 5.60%, 2/7/00......... 8,252,229
5,200 5.60%, 2/8/00......... 5,169,262
4,400 5.60%, 2/9/00......... 4,373,307
7,500 5.65%, 2/17/00........ 7,444,677
14,500 5.65%, 2/18/00........ 14,390,767
12,380 5.70%, 2/25/00........ 12,272,191
11,300 5.70%, 2/28/00........ 11,196,228
Chase Manhattan Corp.
45,000 5.76%, 4/28/00........ 44,150,400
Corporate Asset Funding Co.
165,000 6.571%, 1/20/00(a).... 164,992,867
Countrywide Home Loan, Inc.
$ 5,873 5.40%, 1/3/00......... $ 5,871,238
Cregem North America,
Inc.
99,000 5.91%, 3/30/00........ 97,553,527
150,000 5.91%, 3/31/00........ 147,783,750
102,000 5.745%, 4/27/00....... 100,095,532
CXC, Inc.
40,000 6.98%, 1/13/00........ 39,906,933
Daimler Chrysler North
America Holdings,
Inc.
193,000 6.357%, 1/6/00(a)..... 192,871,463
101,000 6.02%, 2/7/00......... 100,375,091
68,000 5.95%, 2/18/00........ 67,460,533
100,000 5.95%, 2/22/00........ 99,140,556
50,000 5.76%, 3/20/00........ 49,368,000
Delaware Funding Corp.
6,000 6.40%, 2/24/00........ 5,942,400
Eaton Corp.
17,000 7.00%, 1/21/00........ 16,933,889
Enterprise Funding
Corp.
7,597 6.60%, 1/31/00........ 7,555,216
Finova Capital Corp.
25,000 6.25%, 3/7/00......... 24,713,542
28,000 6.25%, 3/10/00........ 27,664,583
Forrestal Funding Master Trust
20,220 6.07%, 2/8/00......... 20,090,446
66,789 6.09%, 2/11/00........ 66,325,763
9,000 6.05%, 3/7/00......... 8,900,175
Fortis Funding LLC
66,000 5.91%, 3/31/00........ 65,024,850
FPL Group Capital,
Inc.
5,000 6.70%, 1/20/00........ 4,982,319
GE Capital
International
Funding, Inc.
40,000 5.28%, 2/14/00........ 39,741,867
17,000 5.31%, 2/14/00........ 16,889,670
39,000 5.97%, 3/10/00........ 38,553,742
</TABLE>
-6-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND MONEY FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
Commercial Paper--(cont'd.)
General Electric
Capital Corp.
$ 23,000 5.41%, 2/14/00........ $ 22,847,919
55,000 5.78%, 2/18/00........ 54,576,133
74,000 5.45%, 2/23/00........ 73,406,253
11,686 5.90%, 3/9/00......... 11,555,766
87,000 5.75%, 4/20/00........ 85,471,458
General Electric
Capital Services,
Inc.
168,492 5.98%, 3/6/00......... 166,672,754
71,000 5.76%, 3/10/00........ 70,216,160
General Motors
Acceptance Corp.
250,000 5.77%, 3/3/00......... 247,515,694
Goldman Sachs & Co.
25,000 6.20%, 3/20/00........ 24,659,861
GTE Corp.
23,000 5.50%, 1/26/00........ 22,912,153
GTE Funding, Inc.
20,000 6.50%, 2/11/00........ 19,851,944
ING America Insurance
Holdings, Inc.
43,000 5.90%, 2/8/00......... 42,732,206
Internationale
Nederlanden U.S.
Funding Corp.
68,000 5.91%, 3/28/00........ 67,028,790
150,000 5.91%, 3/29/00........ 147,833,000
Market Street Funding
Corp.
45,000 7.00%, 1/14/00........ 44,886,250
Merrill Lynch & Co.,
Inc.
62,000 5.80%, 1/20/00........ 61,810,211
36,751 5.55%, 1/28/00........ 36,598,024
145,737 5.94%, 2/29/00........ 144,318,250
47,521 5.95%, 2/29/00........ 47,057,604
Morgan (J.P.) & Co.,
Inc.
$ 11,000 5.40%, 1/18/00........ $ 10,971,950
50,000 5.59%, 2/2/00......... 49,751,556
Morgan Stanley Dean
Witter & Co., Inc.
157,000 5.13%, 2/4/00(a)...... 157,000,000
50,000 5.43%, 2/4/00......... 49,743,583
423,000 5.75%, 5/15/00........ 413,879,062
Nationwide Building
Society
34,250 5.95%, 3/7/00......... 33,876,390
Nordbanken North
America, Inc.
120,000 5.97%, 2/7/00......... 119,263,700
PNC Funding Corp.
50,000 6.20%, 1/31/00........ 49,741,667
68,000 5.93%, 2/18/00........ 67,462,347
9,000 5.95%, 3/13/00........ 8,892,900
20,000 5.97%, 3/20/00........ 19,737,983
Salomon Smith Barney
Holdings, Inc.
50,000 5.59%, 2/3/00......... 49,743,792
47,000 5.73%, 2/10/00........ 46,700,767
97,305 5.79%, 3/10/00........ 96,225,158
Santander Finance
(Delaware), Inc.
7,400 5.90%, 2/1/00......... 7,362,404
100,000 5.98%, 2/4/00......... 99,435,222
100,000 5.91%, 3/13/00........ 98,818,000
Swedbank, Inc.
178,846 5.93%, 3/31/00........ 176,194,608
133,000 5.94%, 3/31/00........ 131,024,950
Travelers Insurance
Co.
46,000 6.16%, 1/5/00(a)(b)
(cost $46,000,000;
purchased 7/6/99)... 46,000,000
Triple A One Funding
Corp.
2,545 7.00%, 1/20/00........ 2,535,598
</TABLE>
-7-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND MONEY FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
Commercial Paper--(cont'd.)
Variable Funding Capital Corp.
$ 207,000 6.581%, 1/24/00(a).... $ 207,000,000
---------------
5,670,496,619
---------------
Other Corporate Obligations--24.3%
Abbey National
Treasury Services
PLC
202,000 6.153%, 1/24/00(a).... 201,933,463
43,000 5.29%, 5/22/00........ 42,990,350
43,000 5.92%, 8/7/00......... 42,990,137
Associates Corp. of
North America
355,000 6.41%, 1/31/00(a)..... 354,877,787
Bank One Corp.
46,000 6.145%, 2/9/00(a)..... 46,000,000
68,000 6.154%, 2/22/00(a).... 68,000,000
36,000 6.141%, 2/23/00(a).... 36,000,000
Centex Home Mortgage LLC
47,000 6.601%, 1/20/00(a)(b)
(cost $47,000,000;
purchased
12/8/99)............ 47,000,000
Chase Manhattan Corp.
4,000 6.398%, 1/20/00(a).... 4,002,983
Citicorp
19,000 6.513%, 1/3/00(a)..... 19,000,000
Conseco Finance
Vehicle Trust
92,000 6.621%, 1/18/00(a)(b)
(cost $92,000,000;
purchased
12/16/99)........... 92,000,000
Ford Motor Credit Co.
287,000 6.038%, 2/18/00(a).... 286,853,876
344,000 6.174%, 3/30/00(a).... 343,747,562
General Electric
Capital Corp
57,000 6.014%, 2/14/00(a).... 57,000,000
Goldman, Sachs & Co.
$ 268,000 5.726%, 1/18/00(a)(b)
(cost $268,000,000;
purchased
6/25/97)............ $ 268,000,000
Michigan St. Strategic
Fund Ltd.
10,000 5.45%, 1/3/00......... 10,000,000
Restructured Asset
Securities
248,000 6.559%, 1/6/00(a)(b)
(cost $248,000,000;
purchased 9/2/99)... 248,000,000
221,000 6.569%, 1/10/00(a).... 221,000,000
Security Life Of
Denver
27,000 6.246%, 1/12/00(a)(b)
(cost $27,000,000;
purchased
4/12/99)............ 27,000,000
Short Term Repackaged
Asset Trust 1998-E
148,000 6.561%, 1/18/00(a)(b)
(cost $148,000,000;
purchased
8/18/99)............ 148,000,000
Strategic Money Market
Trust 1999-A
286,000 6.298%, 1/13/00(a).... 286,000,000
133,000 6.181%, 3/15/00(a).... 133,000,000
Strategic Money Market
Trust 1999-E
31,000 6.105%, 1/6/00(a)..... 31,000,000
---------------
3,014,396,158
---------------
Time Deposit - Eurodollar--1.0%
Bank Austria
100,000 5.00%, 1/3/00......... 100,000,000
Bank of Montreal
24,000 5.00%, 1/3/00......... 24,000,000
---------------
124,000,000
---------------
</TABLE>
-8-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND MONEY FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
U.S. Government Agency &
Instrumentality
Obligations - Non-discount--2.9%
Federal Home Loan Bank
$ 84,000 4.90%, 2/11/00........ $ 83,990,904
116,000 4.95%, 2/17/00........ 115,992,009
109,840 5.035%, 2/25/00....... 109,827,090
Federal National
Mortgage Association
50,000 4.99%, 2/22/00........ 49,998,932
---------------
359,808,935
---------------
Total Investments--98.6%
(amortized cost
$12,206,221,710(c))... 12,206,221,710
Other assets in excess
of
liabilities--1.4%... 174,692,587
---------------
Net Assets--100%...... $12,380,914,297
---------------
---------------
</TABLE>
(a) Variable rate instrument. The maturity date presented for these instruments
was the later of the next date on which the security can be redeemed at par
or the next date on which the rate of interest was adjusted.
(b) Indicates illiquid securities restricted as to resale. The aggregate cost of
such securities was $876,000,000. The aggregate value of $876,000,000 was
approximately 7.1% of net assets.
(c) The cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
- ---------------
The industry classification of portfolio holdings and liabilities in excess of
other assets shown as a percentage of net assets as of December 31, 1999 was as
follows:
Commercial Banks........................... 44.7%
Security Brokers & Dealers................. 11.7
Motor Vehicle Parts........................ 11.2
Asset Backed Securities.................... 8.8
Short-Term Business Credit................. 5.6
Bank Holding Companies - Domestic.......... 4.5
Personal Credit Institutions............... 3.3
Federal Credit Agencies.................... 2.9
Financial Services......................... 2.6
Accidental & Health Insurance.............. 1.1
Phone Company.............................. 0.7
Life Insurance............................. 0.7
Fire & Marine Casualty Insurance........... 0.4
Electric & Equipment, Computer............. 0.1
Municipality............................... 0.1
Mortgage Bankers........................... 0.1
Electrical Services........................ 0.1
-----
98.6
Other assets in excess of liabilities...... 1.4
-----
100.0%
-----
-----
-9-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND MONEY FUND
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
Assets December 31, 1999
-----------------
<S> <C>
Investments, at amortized cost which approximates market value........................ $12,206,221,710
Cash.................................................................................. 3,075,273
Receivable for Fund shares sold....................................................... 332,481,892
Interest receivable................................................................... 85,823,293
Prepaid expenses...................................................................... 202,709
-----------------
Total assets........................................................................ 12,627,804,877
-----------------
Liabilities
Payable for Fund shares repurchased................................................... 240,665,396
Management fee payable................................................................ 3,879,908
Accrued expenses and other liabilities................................................ 1,613,452
Distribution fee payable.............................................................. 731,824
-----------------
Total liabilities................................................................... 246,890,580
-----------------
Net Assets............................................................................ $12,380,914,297
-----------------
-----------------
Net assets were comprised of:
Shares of beneficial interest, at par............................................... $ 123,809,143
Paid-in capital in excess of par.................................................... 12,257,105,154
-----------------
Net assets, December 31, 1999......................................................... $12,380,914,297
-----------------
-----------------
Net asset value, offering price and redemption price per share ($12,380,914,297 /
12,380,914,297 shares of beneficial interest ($.01 par value) issued and
outstanding)........................................................................ $1.00
-----------------
-----------------
</TABLE>
See Notes to Financial Statements appearing on page 30.
-10-
<PAGE>
COMMAND MONEY FUND
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Six Months
Ended
December 31,
Net Investment Income 1999
Income
Interest and discount earned......... $ 349,646,449
------------------
Expenses
Management fee....................... 22,951,222
Distribution fee..................... 7,972,431
Transfer agent's fees and expenses... 2,020,000
Registration fees.................... 474,000
Reports to shareholders.............. 400,000
Custodian's fees and expenses........ 150,000
Insurance expense.................... 66,000
Trustees' fees and expenses.......... 22,000
Audit fee and expenses............... 15,000
Legal fees and expenses.............. 8,000
Miscellaneous........................ 330
------------------
Total expenses..................... 34,078,983
------------------
Net investment income.................. 315,567,466
------------------
Net Increase in Net Assets
Resulting from Operations.............. $ 315,567,466
------------------
------------------
</TABLE>
COMMAND MONEY FUND
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) December 31, June 30,
in Net Assets 1999 1999
<S> <C> <C>
Operations
Net investment
income........... $ 315,567,466 $ 566,116,045
---------------- ----------------
Net increase in net
assets resulting
from
operations....... 315,567,466 566,116,045
---------------- ----------------
Dividends and
distributions to
shareholders (Note
1)................... (315,567,466) (566,116,045)
---------------- ----------------
Fund share
transactions (at $1
per share)
Net proceeds from
shares
subscribed....... 28,968,958,720 56,589,927,827
Net asset value of
shares issued in
reinvestment of
dividends and
distributions.... 315,567,466 566,116,045
Cost of shares
reacquired....... (29,150,557,806) (53,999,386,826)
---------------- ----------------
Net increase in net
assets from Fund
share
transactions..... 133,968,380 3,156,657,046
---------------- ----------------
Total increase....... 133,968,380 3,156,657,046
Net Assets
Beginning of
period............... 12,246,945,917 9,090,288,871
---------------- ----------------
End of period........ $ 12,380,914,297 $ 12,246,945,917
---------------- ----------------
---------------- ----------------
</TABLE>
See Notes to Financial Statements appearing on page 30.
See Notes to Financial Statements
appearing on page 30.
-11-
<PAGE>
COMMAND MONEY FUND
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended June 30,
December 31, -----------------------------------------------------------------------
1999 1999 1998 1997 1996 1995
------------ ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income and net realized
gains................................ 0.025 0.048 0.052 0.049 0.052 0.050
Dividends and distributions to
shareholders......................... (0.025) (0.048) (0.052) (0.049) (0.052) (0.050)
------------ ----------- ---------- ---------- ---------- ----------
Net asset value, end of period......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ----------- ---------- ---------- ---------- ----------
------------ ----------- ---------- ---------- ---------- ----------
TOTAL RETURN(a):....................... 2.56% 4.85% 5.31% 5.06% 5.30% 5.13%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)........ $ 12,380,914 $12,246,946 $9,090,289 $6,629,903 $5,309,842 $4,055,700
Average net assets (000)............... $ 12,686,564 $11,965,069 $7,936,219 $6,078,525 $4,896,794 $3,072,284
Ratios to average net assets:
Expenses, including distribution
fees................................. .53%(b) .54% .54% .57% .58% .59%
Expenses, excluding distribution
fees................................. .41%(b) .41% .42% .44% .46% .47%
Net investment income................ 4.95%(b) 4.73% 5.19% 4.97% 5.15% 5.09%
</TABLE>
- ---------------
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes reinvestment
of dividends and distributions. Total returns for less than a full year are
not annualized.
(b) Annualized.
See Notes to Financial Statements appearing on page 30.
-12-
<PAGE>
<PAGE>
COMMAND GOVERNMENT FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
U.S. Government Agencies--87.8%
Federal Farm Credit Bank--2.1%
$ 6,000 5.62%, 3/1/00............. $ 5,996,150
160 5.68%, 5/1/00............. 159,882
2,340 6.88%, 5/1/00............. 2,347,600
1,000 5.66%, 8/11/00............ 996,889
5,000 5.85%, 12/1/00............ 4,989,062
---------------
14,489,583
---------------
Federal Home Loan Bank--58.4%
14,000 5.976%, 1/11/00(a)........ 13,999,735
22,000 4.90%, 1/14/00............ 22,000,000
1,743 5.77%, 1/18/00............ 1,738,251
12,500 5.60%, 1/26/00(a)......... 12,498,818
11,000 4.90%, 2/11/00............ 10,998,809
6,000 4.95%, 2/17/00............ 5,999,587
8,000 5.00%, 2/24/00............ 7,999,775
8,000 5.00%, 2/25/00............ 8,000,000
16,000 5.035%, 2/25/00........... 15,998,240
20,000 6.163%, 2/25/00(a)........ 20,000,000
1,000 6.163%, 3/1/00(a)......... 999,910
8,000 5.035%, 3/2/00............ 8,000,000
1,500 5.07%, 3/17/00............ 1,497,774
6,000 5.605%, 3/23/00........... 6,006,797
22,500 5.913%, 3/24/00(a)........ 22,500,000
11,000 5.923%, 4/12/00(a)........ 10,998,774
2,500 4.925%, 4/14/00(a)........ 2,499,682
13,000 5.01%, 4/28/00............ 12,995,394
2,500 5.075%, 4/28/00........... 2,500,034
13,000 5.02%, 5/12/00............ 12,993,772
2,500 5.125%, 5/19/00........... 2,493,584
10,500 5.15%, 5/19/00............ 10,496,570
5,000 5.35%, 6/8/00............. 4,998,435
5,500 5.66%, 7/6/00............. 5,503,757
13,000 6.291%, 7/12/00(a)........ 12,996,572
24,000 6.33%, 7/28/00(a)......... 23,993,148
8,000 5.875%, 9/7/00............ 7,997,650
5,500 Zero Coupon, 9/15/00...... 5,280,762
$ 1,010 5.01%, 9/21/00............ $ 1,003,295
26,500 5.461%, 9/21/00(a)........ 26,494,353
31,500 5.924%, 10/4/00(a)........ 31,483,605
26,000 6.329%, 10/4/00(a)........ 25,991,283
5,000 5.705%, 10/6/00........... 4,992,884
8,000 5.915%, 10/13/00.......... 7,994,499
26,000 5.61%, 10/20/00........... 25,985,430
11,000 5.965%, 12/1/00(a)........ 10,988,003
---------------
408,919,182
---------------
Federal Home Loan Mortgage
Corporation--1.3%
1,500 6.395%, 5/16/00........... 1,507,155
7,640 5.99%, 12/6/00............ 7,630,117
---------------
9,137,272
---------------
Federal National Mortgage
Association--18.6%
17,000 5.02%, 4/26/00............ 16,946,743
8,500 5.33%, 6/9/00............. 8,496,638
4,000 5.9725%, 6/22/00(a)....... 3,997,413
15,500 5.94%, 8/9/00(a).......... 15,491,109
8,000 5.80%, 8/17/00............ 7,995,230
3,500 5.934%, 9/6/00(a)......... 3,499,001
26,000 5.01%, 9/18/00(a)......... 25,996,302
1,585 5.97%, 10/2/00............ 1,585,659
13,000 4.965%, 11/6/00(a)........ 12,990,117
18,000 5.83%, 11/17/00(a)........ 17,982,792
9,500 5.90%, 12/1/00............ 9,481,293
5,690 5.89%, 12/22/00........... 5,680,461
---------------
130,142,758
---------------
Student Loan Marketing
Association--7.4%
26,000 6.163%, 10/4/00(a)........ 25,984,616
26,000 5.015%, 10/27/00(a)....... 25,994,672
---------------
51,979,288
---------------
Total U.S. Government
Agencies
(amortized cost
$614,668,083)........... 614,668,083
---------------
</TABLE>
-13-
See Notes to Financial Statements appearing on page 30.
<PAGE>
<PAGE>
COMMAND GOVERNMENT FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
Repurchase Agreements(b)--8.7%
Lehman Brothers Inc.,
4.20%, dated 12/30/99,
due 1/03/00 in the
amount of $39,896,610
(cost $39,878,000),
value of collateral
including accrued
interest--$40,700,483... $ 39,878,000
$ 39,878
Salomon Smith Barney Inc.,
3.50%, dated 12/31/99,
due 1/04/00 in the
amount of $20,656,030
(cost $20,648,000),
value of collateral
including accrued
interest--$21,073,665... 20,648,000
20,648
---------------
Total Repurchase
Agreements
(amortized cost
$60,526,000)............ 60,526,000
---------------
Total Investments--96.5%
(amortized cost
$675,194,083(c))........ 675,194,083
Other assets in excess of
liabilities--3.5%....... 24,561,382
---------------
Net Assets--100%.......... $ 699,755,465
---------------
---------------
</TABLE>
- ---------------
(a) Variable rate instrument. The maturity date presented for these instruments
is the later of the next date on which the security can be redeemed at par
or the next date on which the rate of interest is adjusted.
(b) Repurchase agreements are collateralized by U.S. Treasury or Federal agency
obligations.
(c) The cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
-14-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND GOVERNMENT FUND
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
Assets December 31, 1999
-----------------
<S> <C>
Investments, at amortized cost which approximates market value........................ $ 614,668,083
Repurchase agreements................................................................. 60,526,000
Cash.................................................................................. 403,532
Receivable for Fund shares sold....................................................... 78,018,490
Interest receivable................................................................... 7,062,867
Prepaid expenses...................................................................... 13,900
-----------------
Total assets........................................................................ 760,692,872
-----------------
Liabilities
Payable for Fund shares repurchased................................................... 60,556,811
Management fee payable................................................................ 247,331
Accrued expenses...................................................................... 91,101
Distribution fee payable.............................................................. 42,164
-----------------
Total liabilities................................................................... 60,937,407
-----------------
Net Assets............................................................................ $ 699,755,465
-----------------
-----------------
Net assets were comprised of:
Shares of beneficial interest, at par............................................... $ 6,997,555
Paid-in capital in excess of par.................................................... 692,757,910
-----------------
Net assets, December 31, 1999......................................................... $ 699,755,465
-----------------
-----------------
Net asset value, offering price and redemption price per share ($699,755,465 /
699,755,465 shares of beneficial interest ($.01 par value) issued and
outstanding)........................................................................ $1.00
-----------------
-----------------
</TABLE>
See Notes to Financial Statements appearing on page 30.
-15-
<PAGE>
COMMAND GOVERNMENT FUND
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Six Months
Ended
December 31,
Net Investment Income 1999
Income
Interest and discount earned......... $ 18,974,939
------------------
Expenses
Management fee....................... 1,423,335
Distribution fee..................... 444,792
Transfer agent's fees and expenses... 51,000
Custodian's fees and expenses........ 40,000
Registration fees.................... 30,000
Reports to shareholders.............. 28,000
Audit fee and expenses............... 14,000
Trustees' fees and expenses.......... 10,000
Insurance expense.................... 4,000
Legal fees and expenses.............. 4,000
Miscellaneous........................ 4,075
------------------
Total expenses..................... 2,053,202
------------------
Net investment income.................. 16,921,737
------------------
Realized Gain on Investments
Net realized gain on investment
transactions......................... 9,867
------------------
Net Increase in Net Assets
Resulting from Operations.............. $ 16,931,604
------------------
------------------
</TABLE>
COMMAND GOVERNMENT FUND
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) December 31, June 30,
in Net Assets 1999 1999
<S> <C> <C>
Operations
Net investment
income............... $ 16,921,737 $ 34,224,418
Net realized gain on
investment
transactions....... 9,867 22,602
--------------- ---------------
Net increase in net
assets resulting
from operations.... 16,931,604 34,247,020
--------------- ---------------
Dividends and
distributions to
shareholders (Note
1)..................... (16,931,604) (34,247,020)
--------------- ---------------
Fund share transactions
(at $1 per share)
Net proceeds from
shares
subscribed......... 1,618,375,948 3,282,787,339
Net asset value of
shares issued in
reinvestment of
dividends and
distributions...... 16,931,434 34,247,020
Cost of shares
reacquired........... (1,649,941,454) (3,211,372,225)
--------------- ---------------
Net increase
(decrease) in net
assets from Fund
share
transactions....... (14,634,072) 105,662,134
--------------- ---------------
Total increase
(decrease)............. (14,634,072) 105,662,134
Net Assets
Beginning of period.... 714,389,537 608,727,403
--------------- ---------------
End of period.......... $ 699,755,465 $ 714,389,537
--------------- ---------------
--------------- ---------------
</TABLE>
See Notes to Financial Statements appearing on page 30.
See Notes to Financial Statements
appearing on page 30.
-16-
<PAGE>
COMMAND GOVERNMENT FUND
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended June 30,
December 31, ------------------------------------------------------------
1999 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income and net realized
gains................................ 0.024 0.046 0.051 0.049 0.050 0.048
Dividends and distributions to
shareholders......................... (0.024) (0.046) (0.051) (0.049) (0.050) (0.048)
------------ -------- -------- -------- -------- --------
Net asset value, end of period......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ -------- -------- -------- -------- --------
------------ -------- -------- -------- -------- --------
TOTAL RETURN(b)........................ 2.42% 4.74% 5.20% 4.97% 5.12% 4.89%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)........ $699,755 $714,390 $608,727 $528,469 $487,485 $404,295
Average net assets (000)............... $707,800 $739,779 $562,693 $534,580 $477,168 $350,458
Ratios to average net assets:
Expenses, including distribution
fees................................. .58%(a) .56% .56% .63% .68% .65%
Expenses, excluding distribution
fees................................. .45%(a) .44% .44% .51% .56% .53%
Net investment income................ 4.76%(a) 4.63% 5.08% 4.84% 4.97% 4.81%
</TABLE>
- ---------------
(a) Annualized.
(b) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes reinvestment
of dividends and distributions. Total returns for less than one year are not
annualized.
See Notes to Financial Statements appearing on page 30.
-17-
<PAGE>
COMMAND TAX-FREE FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
ALASKA--1.1%
Valdez Marine Air
Terminal Rev., Arco
Trans. Proj.,
T.E.C.P.,
3.85%, 2/4/00, Ser.
VMIG1 $ 14,400 94C................... $ 14,400,000
--------------
ARIZONA--2.2%
Maricopa Cnty., St.
Joseph's Care Ctr.,
Prerefunded,
7.75%, 7/1/00, Ser.
NR 3,800 90A................... 3,955,792
Salt River Proj.
Agricultural Improv. &
Pwr., T.E.C.P.,
3.35%, 2/17/00, Ser.
P1 11,006 80.................... 11,006,000
3.40%, 2/15/00, Ser.
P1 14,400 80.................... 14,400,000
--------------
29,361,792
--------------
CALIFORNIA--1.8%
California Higher Ed.
Ln. Auth., Student Ln.
Rev., A.N.N.M.T.,
3.50%, 7/1/00, Ser.
VMIG1 24,000 87B................... 24,000,000
--------------
COLORADO--1.4%
Arapahoe Cnty. Co. Sch.
Dist., T.A.N.,
4.25%, 6/30/00, Ser.
MIG1 7,000 99.................... 7,017,876
El Paso Cnty. Co.,
Single Fam. Mtge.
Rev., A.M.T.,
3.25%, 5/15/00, Ser.
SP1+* 6,710 99C................... 6,710,000
Wheat Ridge Ind. Dev.
Rev., Var. Adolph
Coors Co. Proj.,
A.M.T., F.R.W.D.,
5.40%, 1/5/00, Ser.
A1+* 5,000 93.................... 5,000,000
--------------
18,727,876
--------------
CONNECTICUT--0.2%
Connecticut Spec.
Assmt., Unemploy.
Comp. Rev.,
A.N.N.M.T.,
3.38%, 7/1/00, Ser
VMIG1 $ 3,200 93C................... $ 3,200,000
--------------
DISTRICT OF COLUMBIA--2.3%
Dist. of Columbia, Gen.
Oblig., F.R.D.D.,
5.15%, 1/3/00, Ser.
VMIG1 1,400 92A-3................. 1,400,000
5.15%, 1/3/00, Ser.
VMIG1 2,500 92A-4................. 2,500,000
Dist. of Columbia,
National Academy of
Science, T.E.C.P.,
A.M.T.,
3.55%, 1/28/00, Ser.
VMIG1 10,000 99B................... 10,000,000
Metro. Wash. Arpt. Rev.,
A.M.T., T.E.C.P.,
4.50%, 1/28/00, Ser.
A1+* 18,000 99A................... 18,000,000
--------------
31,900,000
--------------
FLORIDA--4.0%
Gulf Envir. Svcs. Inc.,
F.R.W.D.,
5.80%, 1/6/00, Ser.
VMIG1 9,650 28A................... 9,650,000
Jacksonville Elec.
Auth., T.E.C.P.,
P1 6,950 3.80%, 2/1/00........... 6,950,000
P1 6,000 3.75%, 3/9/00, Ser. A... 6,000,000
Orange Cnty., Florida
Hlth. Facs. Auth. Rev.
Certs., F.R.W.D.,
5.71%, 1/6/00, Ser.
A1+* 20,500 171................... 20,500,000
Pinellas Cnty. Hlth.
Fac., Prerefunded,
8.50%, 3/1/00, Ser.
NR 10,705 90A................... 11,012,453
--------------
54,112,453
--------------
</TABLE>
-18-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND TAX-FREE FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
GEORGIA--10.0%
Albany Dougherty Georgia
Payroll, Georgia Pwr.
Co. Plant Proj.,
Q.T.R.M.T.,
VMIG1 $ 2,120 3.95%, 2/1/00........... $ 2,120,000
Atlanta Urban Res., Fin.
Auth., A.M.T.,
F.R.W.D.,
5.65%, 1/6/00, Ser.
A1+* 11,104 98B................... 11,104,000
Burke Cnty. Georgia Dev.
Auth.,
Georgia Pwr. Co.,
Q.T.R.M.T.,
3.95%, 2/1/00, Ser.
VMIG1 13,155 91-1.................. 13,155,000
Oglethorpe Pwr. Corp.,
T.E.C.P.,
3.52%, 2/10/00,
VMIG1 18,500 Ser.98................ 18,500,000
Cobb Cnty. Dev. Auth.,
Institute of Nuclear
Pwr., F.R.W.D.,
5.55%, 1/5/00, Ser.
CPS1 18,390 98.................... 18,390,000
Cobb Cnty. Hsg. Auth.,
Multifam. Hsg. Rev.,
Post Bridge Proj.,
F.R.W.D.,
5.50%, 1/5/00, Ser.
A1+* 10,000 96.................... 10,000,000
Terrell Mill II Assoc.,
F.R.W.D.,
5.55%, 1/6/00, Ser.
A1+* 10,600 93.................... 10,600,000
Fulton Cnty. Dev. Auth.,
Catholic Sch. Prop.,
F.R.W.D.,
5.50%, 1/6/00, Ser.
NR 26,900 99.................... 26,900,000
Siemen's Energy, Inc.,
F.R.W.D.,
5.55%, 1/6/00, Ser.
VMIG1 7,750 94.................... 7,750,000
Willacoochie Dev. Auth.,
Poll. Ctrl. Rev.,
Langboard, Inc. Proj.,
F.R.W.D., A.M.T.,
5.60%, 1/6/00, Ser.
NR $ 17,000 97.................... $ 17,000,000
--------------
135,519,000
--------------
HAWAII--1.2%
Hawaii St., Gen. Oblig.,
8.13%, 2/1/00, Ser.
AAA* 2,305 1991.................. 2,314,645
Class A Cert., F.R.W.D.,
Prerefunded,
5.70%, 1/6/00, Ser.
VMIG1 12,060 98B................... 12,060,000
Honolulu City & Cnty.,
Gen. Oblig., Wtr.
Bonds, Prerefunded,
7.25%, 6/1/00, Ser.
NR 1,745 90.................... 1,789,701
--------------
16,164,346
--------------
ILLINOIS--16.5%
Chicago, Stockyards Ind.
Proj., F.R.W.D.,
5.60%, 1/5/00, Ser.
A1+* 13,300 96A................... 13,300,000
Cook Cnty. Illinois
Consolidated High
School Dist., Gen.
Oblig.,
4.70%, 12/1/00, Ser.
NR 2,170 99.................... 2,184,442
Gurnee Ind. Dev. Rev.,
Sterigenics Intl.
Proj., F.R.W.D.,
A.M.T.,
5.55%, 1/5/00, Ser.
A1+* 7,320 96.................... 7,320,000
Illinois Dev. Fin.
Auth., Illinois Pwr.
Co. Proj., T.E.C.P.,
3.65%, 2/22/00, Ser.
VMIG1 8,000 93C................... 8,000,000
Illinois Dev. Fin. Auth.
Rev., Adventist Hlth.
Sys., F.R.W.D.,
5.50%, 1/6/00, Ser.
VMIG1 13,875 97A................... 13,875,000
</TABLE>
-19-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND TAX-FREE FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
ILLINOIS--(cont'd.)
American College of
Surgeons, F.R.W.D.,
5.50%, 1/7/00, Ser.
A1+* $ 15,200 96.................... $ 15,200,000
Chicago Symphony,
F.R.W.D.,
4.01%, 1/5/00, Ser.
VMIG1 9,300 96.................... 9,300,000
Illinois Ed. Fac. Auth.,
Art Institute of
Chicago, F.R.W.D.,
4.86%, 1/5/00, Ser.
VMIG1 9,400 96.................... 9,400,000
Illinois Hlth. Facs.
Auth. Rev.,
Resurrection Hlth.,
F.R.D.D.,
3.58%, 1/3/00, Ser.
VMIG1 1,850 99A................... 1,850,000
Illinois Hlth. Fac. Dev.
Auth., Central Baptist
Home, F.R.W.D.,
5.50%, 1/6/00, Ser.
VMIG1 13,300 99B................... 13,300,000
Evanston Hosp. Corp.
Prog., A.N.N.M.T.,
3.25%, 2/29/00, Ser.
VMIG1 20,000 95.................... 20,000,000
3.90%, 10/31/00, Ser.
VMIG1 25,000 92.................... 25,000,000
Riverside Hlth. Sys.,
F.R.W.D.,
5.45%, 1/6/00, Ser.
VMIG1 12,500 94C................... 12,500,000
Servant Cor Falcon II,
F.R.W.D.,
5.17%, 1/5/00, Ser.
A1+* 14,000 96A................... 14,000,000
SSM Health Care,
T.E.C.P.,
3.90%, 1/26/00, Ser.
A1+* 18,540 98B................... 18,540,000
Illinois St., Gen.
Oblig., Prerefunded,
6.70%, 6/1/00, Ser.
NR 2,140 90.................... 2,212,075
Wheeling Multifam. Hsg.
Rev., Woodland Creek
II, F.R.W.D.,
5.50%, 1/7/00, Ser.
Aaa* $ 17,655 90.................... $ 17,655,000
Woodridge & Dupage
Cntys., Multifam. Hsg.
Rev., Hinsdale Lake
Terr. Apts., F.R.W.D.,
5.55%, 1/7/00, Ser.
A1+* 20,760 90.................... 20,760,000
--------------
224,396,517
--------------
INDIANA--1.2%
Fort Wayne Sew. Works
Imp. Rev.,
4.00%, 8/1/00, Ser.
NR 1,000 B..................... 1,002,814
Indiana Ed. Fac. Auth.,
Wesleyan Univ.,
F.R.W.D.,
5.50%, 1/7/00, Ser.
NR 5,000 93.................... 5,000,000
Indiana Sec. Market for
Ed. Loans,
3.60%, 6/1/00, Ser.
NR 2,000 98F................... 2,001,199
Tippecanoe Cnty. Ind.
Poll. Ctrl. Rev.,
Caterpillar, Inc.
Proj., F.R.W.D.,
A.M.T.,
5.60%, 1/6/00, Ser.
P1 8,750 91.................... 8,750,000
--------------
16,754,013
--------------
IOWA--0.6%
Sergeant Bluff Ind. Dev.
Rev., Sioux City Brick
& Tile Proj.,
F.R.W.D., A.M.T.,
5.65%, 1/6/00, Ser.
NR 8,480 96C................... 8,480,000
--------------
</TABLE>
-20-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND TAX-FREE FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
KANSAS--0.7%
Mission Kansas Multifam.
Rev., Ref. Hsg., The
Falls Apts. Proj.,
F.R.W.D., A.M.T.,
A1+* $ 9,350 5.66%, 1/6/00........... $ 9,350,000
--------------
KENTUCKY--0.4%
Kentucky St. Tpk. Auth.
Econ. Dev.,
Revitalization Proj.,
Prerefunded,
7.50%, 5/15/00, Ser.
NR 2,500 90.................... 2,574,912
Road Rev., Prerefunded,
7.25%, 5/15/00, Ser.
NR 2,700 90.................... 2,779,396
--------------
5,354,308
--------------
LOUISIANA--0.4%
Calcasieu Parish Ind.
Dev. Bd., Citgo Corp.,
F.R.D.D., A.M.T.,
5.40%, 1/3/00, Ser.
NR 1,200 96.................... 1,200,000
West Baton Rouge Parish
Dist. Pound3, Dow
Chemical Co. Proj.,
A.M.T., F.R.D.D.,
5.45%, 1/3/00, Ser.
P1 3,300 94A,.................. 3,300,000
5.45%, 1/3/00, Ser.
P1 900 95.................... 900,000
--------------
5,400,000
--------------
MARYLAND--0.9%
Anne Arundel Cnty.,
Baltimore Gas &
Electric, A.N.N.M.T.,
3.52%, 7/1/00, Ser.
VMIG1 6,000 84.................... 6,000,000
Maryland St. Hlth. &
High. Ed. Fac., Univ.
of Maryland Med. Sys.,
F.R.W.D.,
A1+* 5,900 5.35%, 1/5/00........... 5,900,000
--------------
11,900,000
--------------
MASSACHUSETTS--3.0%
Brockton, Gen Oblig.,
AAA* $ 1,000 6.00%, 5/1/00........... $ 1,009,030
Mass. St. Hlth. & Ed.
Facs. Auth. Rev.,
Boston Univ.,
F.R.W.D.,
5.35%, 1/5/00, Ser.
VMIG1 23,700 85H................... 23,700,000
Univ. Hospital,
Prerefunded,
NR 6,000 7.25%, 7/1/00, Ser. C... 6,232,950
Mass. St. Hsg. Fin.
Agcy., Single Family
Hsg. Notes, A.M.T.,
MIG1 2,000 3.60%, 6/1/00, Ser. A... 2,000,000
Mass. St. Wtr. Res.
Auth., Prerefunded,
7.00%, 4/1/00, Ser.
NR 3,560 90A................... 3,663,847
7.63%, 4/1/00, Ser.
NR 1,145 90A................... 1,180,133
Mass. St., Gen. Oblig.,
Prerefunded,
7.25%, 3/1/00, Ser.
NR 2,235 90A................... 2,294,521
--------------
40,080,481
--------------
MICHIGAN--1.1%
Michigan Mun. Bond
Auth., Rev. Notes,
4.25%, 8/25/00, Ser.
SP1+* 10,000 B1.................... 10,040,582
Willow Run Comm. Sch.,
Prerefunded,
6.38%, 5/1/00, Ser.
NR 5,200 91.................... 5,356,220
--------------
15,396,802
--------------
MINNESOTA--1.3%
Bloomington Port Auth.
Tax Rev., Ref. Mall of
America, F.R.W.D.,
VMIG1 18,000 5.45%, 1/6/00, Ser. B... 18,000,000
--------------
</TABLE>
-21-
See Notes to Financial Statements appearing on page 30.
<PAGE>
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
MISSISSIPI--2.3%
Harrison Cnty. Poll.
Ctrl. Rev.,
Mississippi Pwr. Co.
Proj., Q.T.R.M.T.,
3.95%, 2/1/00, Ser.
A1 $ 16,750 92.................... $ 16,750,000
Jackson Cnty. Port Fac.
Rev., Chevron U.S.A.,
Inc. Proj.,
S.E.M.M.T.,
3.85%, 5/1/00, Ser.
P1 9,900 93,................... 9,900,000
Mississippi St. Lease
Rev. Cert.,
4.25%, 10/15/00, Ser.
NR 4,280 A..................... 4,280,000
--------------
30,930,000
--------------
NEW HAMPSHIRE--0.3%
New Hampshire St. Bus.
Fin. Auth. Fac. Rev.,
Mod Tap NA Corp.
Proj., F.R.W.D.,
Aa2 4,400 5.00%, 1/5/00........... 4,400,000
--------------
NEW JERSEY--0.2%
New Jersey Econ. Dev.
Auth. Rev., 865
Centennial Ave. Proj.,
F.R.W.D., A.M.T.,
5.61%, 1/6/00, Ser.
A1+* 3,250 85.................... 3,250,000
--------------
NEW MEXICO--0.2%
New Mexico St. Hwy.
Comm. Tax Rev., Sr.
Sub. Lien,
4.25%, 6/15/00, Ser.
NR 2,715 98A................... 2,726,961
--------------
NEW YORK--2.5%
New York Energy Res. &
Dev. Auth., Niagara
Mohawk Pwr. Corp.,
F.R.D.D.,
4.90%, 1/3/00, Ser.
P1 1,600 85B................... 1,600,000
New York Local Gov't.
Assist. Corp., Mun.
Secs. Trust Rcpts.,
F.R.D.D.,
4.90%, 1/3/00, Ser.
A1+* $ 6,000 59.................... $ 6,000,000
New York, NY, Mun. Secs.
Trust Rcpts.,
F.R.D.D.,
4.90%, 1/3/00, Ser.
A1+* 1,100 63.................... 1,100,000
Niagara Cnty. Ind. Dev.
Agcy., Waste Disp.
Rev., F.R.W.D.,
A.M.T.,
P1 21,500 6.50%, 1/5/00........... 21,500,000
Port Auth. New York &
New Jersey, F.R.D.D.,
VMIG1 1,600 4.90%, 1/3/00, Ser. 3... 1,600,000
VMIG1 2,200 4.90%, 1/3/00, Ser. 5... 2,200,000
--------------
34,000,000
--------------
NORTH CAROLINA--1.9%
Charlotte Airport Rev.,
T.E.C.P.,
3.90%, 1/26/00, Ser.
VMIG1 7,000 D..................... 7,000,000
Halifax Cnty. Ind. Facs.
& Poll. Ctrl.,
Westmoreland L.G. & E.
Partners, F.R.D.D.,
A.M.T.,
4.90%, 1/3/00, Ser.
A1+* 2,300 93.................... 2,300,000
North Carolina Ed. Fac.
Fin. Agcy. Rev.,
Warren Wilson Coll.,
F.R.W.D.,
5.50%, 1/6/00, Ser.
NR 12,200 98.................... 12,200,000
Raliegh Durham Arpt.
Auth., Spec. Facs.
Rev., American
Airlines, F.R.D.D.,
4.95%, 1/3/00, Ser.
A1+* 4,000 95B1.................. 4,000,000
--------------
25,500,000
--------------
</TABLE>
-22-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND TAX-FREE FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
OHIO--5.8%
Clinton Cnty. Hosp.
Rev., Ohio Hosp. Cap.
Fin., F.R.W.D.,
5.60%, 1/5/00, Ser.
A1+* $ 28,000 98.................... $ 28,000,000
Cuyahoga Cnty. Hosp.
Rev., Univ. Hosp.
Hlth., F.R.W.D.,
3.97%, 1/6/00, Ser.
VMIG1 10,300 99E................... 10,300,000
Franklin Cnty. Hosp.
Rev., Subordinated
Doctors Ohio Health,
F.R.W.D.,
VMIG1 9,800 5.70%, 1/6/00........... 9,800,000
Kings Local Sch. Dist.,
B.A.N.,
4.19%, 3/1/00, Ser.
NR 6,000 99.................... 6,007,147
Lorain Cnty. Ind. Living
Facs. Rev., F.R.W.D.,
A1+* 6,830 4.40%, 1/5/00........... 6,830,000
Ohio Hsg. Fin. Agcy.,
Multifam. Hsg. Rev.,
F.R.W.D.,
A1+* 5,945 5.50%, 1/7/00, Ser. B... 5,945,000
Ohio Hsg. Fin. Agcy.,
A.N.N.O.T., A.M.T.,
3.90%, 7/20/00, Ser.
A1+*D 11,930 117................... 11,930,000
--------------
78,812,147
--------------
OKLAHOMA--2.0%
Muskogee Ind. Trust,
Muskogee Mall Proj.,
F.R.W.D.,
5.30%, 1/5/00, Ser.
VMIG1 5,100 85.................... 5,100,000
Tulsa Pkg. Auth. Rev.,
Williams Ctr. Proj.,
S.E.M.M.T.,
3.90%, 5/15/00, Ser.
VMIG1 5,200 87A................... 5,200,000
Tulsa Cnty. Hsg. Fin.
Auth., Morgan Keegan
Var. Rate Trust,
F.R.W.D., A.M.T.,
A1+* $ 17,485 5.76%, 1/6/00, Ser. E... $ 17,485,000
--------------
27,785,000
--------------
OREGON--1.0%
Oregon St. Hsg. & Comm.
Svcs. Dep., Single
Family Mtge.,
3.15%, 4/13/00, Ser.
MIG1 5,000 99C................... 5,000,000
3.45%, 6/29/00, Ser.
MIG1 6,400 99G................... 6,400,000
A.M.T.,
3.20%, 4/13/00, Ser.
MIG1 1,500 99D................... 1,500,000
--------------
12,900,000
--------------
PENNSYLVANIA--3.6%
Dauphin Cnty. Gen. Auth.
Rev.,
All Hlth. Pooled Fin.
Prog., F.R.W.D.,
A1+* 10,000 5.60%, 1/5/00, Ser. B... 10,000,000
Ed. & Hlth. Prog.,
F.R.W.D.,
5.75%, 1/6/00, Ser.
VMIG1 18,120 97.................... 18,120,000
Penn. Intergov. Coop.
Auth., Philadelphia
Funding Prog.,
5.75%, 6/15/00, Ser.
NR 3,000 96.................... 3,033,082
Philadelphia Sch. Dist.,
T.R.A.N.,
4.00%, 6/30/00, Ser.
MIG1 12,000 B..................... 12,031,625
Temple Univ. Funding
Notes,
3.15%, 5/12/00, Ser.
MIG1 6,000 99.................... 6,000,000
--------------
49,184,707
--------------
</TABLE>
-23-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND TAX-FREE FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
SOUTH CAROLINA--1.9%
Richland Cnty. Sch.
Dist.,
6.63%, 3/1/00, Ser.
MIG1 $ 2,310 96.................... $ 2,322,785
South Carolina Ed. Fac.
Auth., Presbyterian
College, F.R.W.D.,
4.00%, 1/6/00, Ser.
CPS1 11,630 98.................... 11,630,000
South Carolina Pub.
Svcs. Auth., T.E.C.P.,
P1 12,000 3.90%, 1/21/00.......... 12,000,000
--------------
25,952,785
--------------
SOUTH DAKOTA--2.9%
South Dakota Hsg. Dev.
Auth.,
Homeownership Mtge.,
3.40%, 7/7/00, Ser.
MIG1 5,315 99E................... 5,315,000
3.75%, 9/28/00, Ser.
MIG1 6,000 J..................... 6,000,000
A.M.T.,
3.70%, 4/7/00, Ser.
NR 6,000 99C................... 6,000,000
3.45%, 7/7/00, Ser.
MIG1 22,000 99F................... 22,000,000
--------------
39,315,000
--------------
TENNESSEE--2.7%
Dickson Cnty.,
Renaissance Learning
Cent. Rev., F.R.W.D.,
5.55%, 1/5/00, Ser.
NR 16,000 97.................... 16,000,000
Sumner Cnty. Hlth. Ed. &
Hsg. Bd. Rev., Hosp.
Alliance Pooled,
F.R.W.D.,
5.61%, 1/6/00, Ser.
A1+* 20,000 99A................... 20,000,000
--------------
36,000,000
--------------
TEXAS--17.6%
Austin Texas Util. Sys.
Rev., T.E.C.P.,
P1 30,262 3.80%, 2/11/00.......... 30,262,000
Bexar Cnty. Hsg. Fin.
Corp., Perrin Park
Apt., A.M.T.,
F.R.W.D.,
5.61%, 1/6/00, Ser.
VMIG1 $ 10,375 96.................... $ 10,375,000
Bexar Metro. Wtr. Dist.
Rev., T.E.C.P.,
P1 5,000 4.35%, 2/17/00.......... 5,000,000
Brazos River Harbor Nav.
Dist. Rev.,
Dow Chemical Co.
Proj.,
F.R.D.D., A.M.T.,
5.45%, 1/3/00, Ser.
P1 800 92A................... 800,000
5.45%, 1/3/00, Ser.
P1 1,200 93.................... 1,200,000
5.45%, 1/3/00, Ser.
P1 4,300 96.................... 4,300,000
5.45%, 1/3/00, Ser.
P1 300 97.................... 300,000
T.E.C.P.,
3.95%, 1/18/00, Ser.
P1 15,900 91.................... 15,900,000
Collin Cnty. Hsg. Fin.
Corp. Multifam. Hsg.
Rev., Huntington Apts.
Proj., F.R.W.D.,
5.61%, 1/6/00, Ser.
A1+* 6,155 96.................... 6,155,000
Guadalupe Blanco River
Auth., The BOC Group,
Inc., F.R.W.D.,
4.00%, 1/6/00, Ser.
CPS1 10,000 93.................... 10,000,000
Gulf Coast Ind. Dev.
Auth., Citgo Petro.
Proj., F.R.D.D.,
A.M.T.,
5.40%, 1/3/00, Ser.
VMIG1 3,200 94.................... 3,200,000
5.40%, 1/3/00, Ser.
VMIG1 1,500 95.................... 1,500,000
Gulf Coast Waste Disp.
Auth., Environmental
Facs. Rev., F.R.D.D.,
A.M.T.,
P1 19,800 5.40%, 1/3/00........... 19,800,000
</TABLE>
-24-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND TAX-FREE FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
TEXAS--(cont'd.)
Houston, Gen. Oblig.,
T.E.C.P.,
3.80%, 1/21/00, Ser.
P1 $ 4,000 B..................... $ 4,000,000
3.90%, 1/25/00, Ser.
P1 12,000 B..................... 12,000,000
3.85%, 1/26/00, Ser.
P1 6,800 B..................... 6,800,000
3.75%, 2/17/00, Ser.
P1 8,100 A..................... 8,100,000
North Central Texas
Hlth. Fac. Dev.,
Retirement Fac. Senior
Hsg., F.R.W.D.,
A1+* 10,000 5.50%, 1/6/00........... 10,000,000
Port Corpus Christi
Texas Ind., Citgo
Petro. Corp. Proj.,
F.R.D.D., A.M.T.,
VMIG1 1,100 5.40%, 1/3/00........... 1,100,000
San Antonio Wtr. Sys.,
T.E.C.P.,
3.50%, 1/26/00, Ser.
P1 19,900 95.................... 19,900,000
Tarrant Cnty. Hlth. Fac.
Dev., Adventist Hlth.
Sys., F.R.W.D.,
5.45%, 1/6/00, Ser.
VMIG1 12,490 96A................... 12,490,000
Texas Hsg., A.M.T.,
T.E.C.P.,
NR 5,060 4.10%, 4/7/00, Ser. A... 5,060,000
Texas St. Univ. Sys.
Rev., Ref. Fin. Sys.,
4.50%, 3/15/00, Ser.
Aaa 4,245 98B................... 4,257,573
Texas St.,
T.R.A.N.,
4.50%, 8/31/00, Ser.
MIG1 30,000 A..................... 30,153,833
Nat. Res. Lab.,
Prerefunded,
7.13%, 4/1/00, Ser.
NR 16,580 90.................... 17,068,640
--------------
239,722,046
--------------
VIRGINIA--1.6%
Campbell Cnty. Ind. Dev.
Auth. Rev., Hadson
Pwr., F.R.D.D.,
A.M.T.,
5.45%, 1/3/00, Ser.
NR $ 1,200 90A................... $ 1,200,000
Chesterfield Cnty.
Virginia Ind. Dev.
Auth., Tidewater Fibre
Corp. Proj., F.R.W.D.,
A.M.T.,
CPS1 6,200 5.60%, 1/6/00........... 6,200,000
Fairfax Cnty. Econ. Dev.
Auth., LEHM-Res. Rec.,
A.M.T., Q.T.R.O.T.,
3.95%, 2/1/00, Ser.
VMIG1D 15,000 99A15................. 15,000,000
--------------
22,400,000
--------------
WASHINGTON--1.4%
Port Seattle Washington,
Rev. Ref.,
6.00%, 2/1/00, Ser.
NR 1,000 95A................... 1,002,226
Washington St. Hlth.
Care Fac., Sisters of
St. Joseph of Peace,
F.R.W.D.,
5.50%, 1/6/00, Ser.
VMIG1 18,300 93.................... 18,300,000
--------------
19,302,226
--------------
WISCONSIN--3.5%
Greenfield Sch. Dist.,
T.R.A.N.,
NR 4,000 4.25%, 9/29/00.......... 4,012,285
Janesville Sch. Dist.,
T.R.A.N.,
NR 3,000 4.25%, 10/5/00.......... 3,009,208
</TABLE>
-25-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND TAX-FREE FUND
Portfolio of Investments
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<C> <C> <S> <C>
WISCONSIN--(cont'd.)
Milwaukee Redev. Auth.,
Historic Third Ward
Parking, F.R.W.D.,
5.60%, 1/6/00, Ser.
NR $ 4,290 99.................... $ 4,290,000
Milwaukee, Gen. Oblig.,
6.60%, 6/15/00, Ser.
NR 2,960 BY.................... 3,003,735
Sheboygan Sch. Dist.,
T.R.A.N.,
NR 5,000 4.10%, 8/30/00.......... 5,010,853
Wausau Sch. Dist.,
T.R.A.N.,
NR 6,300 4.10%, 9/22/00.......... 6,315,826
West Allis West
Milwaukee, T.R.A.N.,
MIG1 4,300 4.10%, 9/21/00.......... 4,310,168
Wisconsin Hsg. Eco. Dev.
Auth., Ownership Rev.,
A.N.N.O.T.,
VMIG1D 8,555 3.90%, 10/5/00.......... 8,555,000
Wisconsin St. Hlth. &
Ed. Facs., T.E.C.P.,
3.65%, 2/16/00, Ser.
A1+* 9,080 98B................... 9,080,000
--------------
47,587,075
--------------
WYOMING--1.7%
Converse Cnty. Poll.,
Ref. Conv., F.R.W.D.,
VMIG1 $ 22,485 5.85%, 1/5/00........... $ 22,485,000
--------------
Total Investments--103.3%
(cost
$1,404,750,535**)..... $1,404,750,535
Liabilities in excess of
other
assets--(3.3%)........ (45,485,751)
--------------
Net Assets--100%........ $1,359,264,784
--------------
--------------
</TABLE>
- ---------------
(a) The following abbreviations are used in portfolio descriptions:
A.M.T.--Alternative Minimum Tax.
A.N.N.M.T.--Annual Mandatory Tender.
A.N.N.O.T.--Annual Option Tender.
B.A.N.--Bond Anticipation Note.
F.R.D.D.--Floating Rate (Daily) Demand Note(b).
F.R.W.D.--Floating Rate (Weekly) Demand Note(b).
Q.T.R.M.T.--Quarterly Mandatory Tender.
Q.T.R.O.T.--Quarterly Optional Tender.
S.E.M.M.T.--Semi-Annual Mandatory Tender.
T.A.N.--Tax Anticipation Note.
T.E.C.P.--Tax Exempt Commercial Paper.
T.R.A.N.--Tax and Revenue Anticipation Note.
(b) For purposes of amortized cost valuation, the maturity date of Floating Rate
Demand Notes is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.
* Standard & Poor's rating.
** The cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
D Indicates an illiquid security restricted as to resale. The aggregate cost of
such securities is $35,485,000. The aggregate value of $35,485,000 is
approximately 2.6% of net assets.
NR--Not Rated by Moody's or Standard & Poor's.
-26-
See Notes to Financial Statements appearing on page 30.
<PAGE>
COMMAND TAX-FREE FUND
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
Assets December 31, 1999
-----------------
<S> <C>
Investments, at amortized cost which approximates market value........................ $ 1,404,750,535
Receivable for Fund shares sold....................................................... 18,941,747
Interest receivable................................................................... 10,709,547
Prepaid expenses...................................................................... 30,516
-----------------
Total assets........................................................................ 1,434,432,345
-----------------
Liabilities
Payable for investments purchased..................................................... 54,180,569
Payable for Fund shares repurchased................................................... 19,868,837
Management fee payable................................................................ 548,868
Accrued expenses and other liabilities................................................ 484,610
Distribution fee payable.............................................................. 84,677
-----------------
Total liabilities................................................................... 75,167,561
-----------------
Net Assets............................................................................ $ 1,359,264,784
-----------------
-----------------
Net assets were comprised of:
Shares of beneficial interest, at par............................................... $ 13,592,648
Paid-in capital in excess of par.................................................... 1,345,672,136
-----------------
Net assets, December 31, 1999......................................................... $ 1,359,264,784
-----------------
-----------------
Net asset value, offering price and redemption price per share ($1,359,264,784 /
1,359,264,784 shares of beneficial interest ($.01 par value) issued and
outstanding)........................................................................ $1.00
-----------------
-----------------
</TABLE>
See Notes to Financial Statements appearing on page 30.
-27-
<PAGE>
COMMAND TAX-FREE FUND
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Six Months
Ended
December 31,
Net Investment Income 1999
Income
Interest and discount earned......... $ 26,681,137
------------------
Expenses
Management fee....................... 3,318,630
Distribution fee..................... 959,580
Transfer agent's fees................ 93,000
Reports to shareholders.............. 40,200
Audit fee and expenses............... 14,000
Trustees' fees and expenses.......... 12,000
Legal fees and expenses.............. 7,000
Custodian's fees and expenses........ 5,100
Registration fees.................... 4,100
Miscellaneous........................ 17,846
------------------
Total expenses..................... 4,471,456
Less: custodian fee credit (Note
1)................................... (30,974)
------------------
Net expenses....................... 4,440,482
------------------
Net investment income.................. 22,240,655
------------------
Net Increase in Net Assets
Resulting from Operations.............. $ 22,240,655
------------------
------------------
</TABLE>
COMMAND TAX-FREE FUND
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) December 31, June 30,
in Net Assets 1999 1999
<S> <C> <C>
Operations
Net investment
income............... $ 22,240,655 $ 42,127,942
Net realized gain on
investment
transactions....... -- 16,415
--------------- ---------------
Net increase in net
assets resulting
from operations.... 22,240,655 42,144,357
--------------- ---------------
Dividends and
distributions to
shareholders (Note
1)..................... (22,240,655) (42,144,357)
--------------- ---------------
Fund share transactions
(at $1 per share)
Net proceeds from
shares
subscribed......... 2,526,886,742 5,590,973,138
Net asset value of
shares issued in
reinvestment of
dividends and
distributions...... 22,240,655 42,144,357
Cost of shares
reacquired........... (2,666,594,130) (5,489,371,232)
--------------- ---------------
Net increase
(decrease) in net
assets from Fund
share
transactions....... (117,466,733) 143,746,263
--------------- ---------------
Total increase
(decrease)............. (117,466,733) 143,746,263
Net Assets
Beginning of period.... 1,476,731,517 1,332,985,254
--------------- ---------------
End of period.......... $ 1,359,264,784 $ 1,476,731,517
--------------- ---------------
--------------- ---------------
</TABLE>
See Notes to Financial Statements appearing on page 30.
See Notes to Financial Statements
appearing on page 30.
-28-
<PAGE>
COMMAND TAX-FREE FUND
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended June 30,
December 31, ----------------------------------------------------------------------
1999 1999 1998 1997 1996 1995
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income and net realized
gains................................ 0.015 0.027 0.031 0.030 0.031 0.032
Dividends and distributions to
shareholders......................... (0.015) (0.027) (0.031) (0.030) (0.031) (0.032)
------------ ---------- ---------- ---------- ---------- ----------
Net asset value, end of period......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ---------- ---------- ---------- ---------- ----------
------------ ---------- ---------- ---------- ---------- ----------
TOTAL RETURN(a)........................ 1.47% 2.77% 3.16% 3.05% 3.12% 3.29%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)........ $ 1,359,265 $1,476,732 $1,332,985 $1,129,513 $1,156,935 $1,055,568
Average net assets (000)............... $ 1,526,983 $1,549,367 $1,279,188 $1,181,084 $1,134,257 $ 926,888
Ratios to average net assets:
Expenses, including distribution
fees................................. .58%(b) .59% .60% .64% .66% .66%
Expenses, excluding distribution
fees................................. .46%(b) .46% .47% .51% .54% .54%
Net investment income................ 2.90%(b) 2.72% 3.11% 3.00% 3.06% 3.05%
</TABLE>
- ---------------
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes reinvestment
of dividends and distributions. Total returns for less than a full year are
not annualized.
(b) Annualized.
See Notes to Financial Statements appearing on page 30.
-29-
<PAGE>
COMMAND FUNDS
Notes to Financial Statements (Unaudited)
Command Money Fund, Command Government Fund and Command Tax-Free Fund (each a
'Fund' and collectively, the 'Funds') are each registered under the Investment
Company Act of 1940 as an open-end, diversified management investment company
whose shares are offered exclusively to participants in the Prudential
Securities Command Account Program of Prudential Securities Incorporated
(Prudential Securities). The Command Money Fund seeks high current income,
preservation of capital and maintenance of liquidity by investing in a
diversified portfolio of money market instruments maturing in 13 months or less.
The Command Government Fund seeks high current income, preservation of capital
and maintenance of liquidity by investing in a portfolio of U.S. government
securities maturing in 13 months or less. The Command Tax-Free Fund seeks high
current income that is exempt from federal income taxes, consistent with the
preservation of capital and maintenance of liquidity. The Fund invests in a
diversified portfolio of short-term, tax-exempt securities with maturities of 13
months or less that are issued by states, municipalities and their agencies (or
authorities). Some securities may be subject to the federal alternative minimum
tax (AMT). The Funds invest in a portfolio of money market instruments whose
ratings are within the two highest ratings categories by a nationally recognized
statistical rating agency or, if not rated, are of comparable quality. The
ability of the issuers of the securities held by the Funds to meet their
obligations may be affected by economic and/or political developments in a
specific industry, state or region.
Note 1. Accounting The following is a summary of
Policies significant generally accepted
accounting policies followed by the Funds in the
preparation of their financial statements.
Securities Valuation: Portfolio securities are valued at amortized cost, which
approximates market value. The amortized cost method involves valuing a security
at its cost on the date of purchase and thereafter assuming a constant
amortization to maturity of any discount or premium. If the amortized cost
method is determined not to represent fair value, the value shall be determined
by or under the direction of the Board of Trustees. All securities are valued as
of 4:30 p.m., New York time.
The Funds may hold up to 10% of its net assets in illiquid securities, including
those which are restricted as to disposition under securities law ('restricted
securities'). None of the issues of restricted securities held by the Funds at
December 31, 1999 include registration rights under which the Fund may demand
registration by the issuer.
Repurchase Agreements: In connection with transactions in repurchase agreements,
it is the Funds' policy that its custodian or designated subcustodians, as the
case may be under triparty repurchase agreements, take possession of the
underlying collateral securities, the value of which exceeds the principal
amount of the repurchase transaction, including accrued interest. If the seller
defaults and the value of the collateral declines or if bankruptcy proceedings
are commenced with respect to the seller of the security, realization of the
collateral by the Funds may be delayed or limited.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of investments
are calculated on the identified cost basis. Interest income is recorded on the
accrual basis. Expenses are recorded on the accrual basis, which may require the
use of certain estimates by management. Net investment income for dividend
purposes includes accrued interest and amortization of premiums and discounts,
plus or minus any gains or losses realized on sales of portfolio securities,
less the estimated expenses of the Fund applicable to the dividend period.
Federal Income Taxes: Each Fund intends to continue to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its net income to its shareholders.
Therefore, no federal income tax provision is required. The cost of portfolio
securities for federal income tax purposes is substantially the same as for
financial reporting purposes.
Dividends: Each Fund declares all of its net investment income as dividends
daily to its shareholders of record at the time of such declaration. Dividends
are reinvested daily into additional full and fractional shares of the
respective Fund at the net asset value per share determined on the date of
declaration.
Custody Fee Credits: The Command Tax-Free Fund has an arrangement with its
custodian bank, whereby uninvested money earns credits which reduce the fees
charged by the custodian.
Note 2. Agreements Each Fund has a manage-
ment agreement with Prudential Investments Fund
Management LLC (PIFM). Pursuant
-30-
<PAGE>
to this agreement, PIFM has responsibility for all investment advisory services
and supervises the subadviser's performance of such services. PIFM has entered
into a subadvisory agreement with the Prudential Investment Corporation (PIC);
PIC furnishes investment advisory services in connection with the management of
the Funds. PIFM pays for the cost of the subadvisor's services, the compensation
of officers of the Funds, occupancy and certain clerical and bookkeeping costs
of the Funds. The Funds bear all other costs and expenses.
The management fee paid to PIFM is computed daily and payable monthly on the
following basis:
<TABLE>
<CAPTION>
Average Daily Command Command Command
Net Assets Money Government Tax-Free
- ------------------------------- ------- ---------- -------
<S> <C> <C> <C>
First $500 million............. .500% .400% .500%
Second $500 million............ .425% .400% .425%
Third $500 million............. .375% .375% .375%
Excess of $1.5 billion......... .350% .375% .375%
</TABLE>
Each Fund has a distribution agreement with Prudential Investment Management
Services LLC ('PIMS') which acts as the distributor of the shares of each Fund.
Each Fund compensates PIMS for distributing and servicing each Fund's shares,
pursuant to the plan of distribution at an annual rate of .125 of 1% of the
average daily net assets of each Fund's shares. The distribution fees are
accrued daily and payable monthly.
PIFM, PIC and PIMS are wholly owned subsidiaries of The Prudential Insurance
Company of America.
Note 3. Other Prudential Mutual Fund Ser-
vices LLC (PMFS), a wholly Transactions
owned subsidiary of PIFM, with Affiliates
serves as the Funds' transfer agent. During the
six months ended December 31, 1999 the Funds incurred fees for the services of
PMFS of approximately:
<TABLE>
<S> <C>
Command Money.................................. $2,019,300
Command Government............................. $ 50,600
Command Tax-Free............................... $ 89,900
</TABLE>
As of December 31, 1999, the following amounts were due to PMFS from the
Funds:
<TABLE>
<S> <C>
Command Money................................... $337,885
Command Government.............................. $ 8,445
Command Tax-Free................................ $ 14,346
</TABLE>
-31-
<PAGE>
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Toll free (800) 225-1852
Prudential Investments Fund Management LLC (LOGO)
Trustees
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
Robin B. Smith
Langdon R. Stevenson
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
Stephen M. Ungerman, Assistant Treasurer
Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07102-3777
Distributor
Prudential Investment Management Services LLC
Gateway Center Three100 Mulberry Street
Newark, NJ 07102-4077
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004
The accompanying financial statements as of December
31, 1999 were not audited and, accordingly, no opinion
is expressed on them.
This report is not authorized for distribution to
prospective investors unless preceded or accompanied
by a current prospectus.
