<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
MARKET VIEW
MARKETS RALLY AS EVIDENCE OF COOLING ECONOMY GROWS
The financial markets enjoyed a "best of all worlds" scenario last quarter as
investors became increasingly convinced that the economic soft landing
engineered by the Federal Reserve had actually arrived. Evidence mounted that
the Fed's tightening of 1994 had taken hold, and as each piece of reported data
confirmed the slowdown, bonds rallied, and stocks followed suit.
The Fed's efforts to slow economic growth-- a 300 basis point increase in the
federal funds rate over a 13 month period--was strong medicine by historical
standards, and contributed to the sharp slowdown in real GDP growth in the
first half of the year. With consumer spending creeping along at an anemic
pace, and industrial production down significantly from year-end levels, the
debate in the markets during the second quarter shifted to when the Fed would
ease, rather than whether additional tightening was needed. The Fed did take
action toward easing in early July when it cut the federal funds rate by 25
basis points.
Fixed income investors around the world enjoyed an extension to the powerful
rally which began in the first quarter. Long-term bond prices surged in
virtually every market, with the most dramatic gains posted in Japan. A number
of factors provided fuel for the fixed income rally, including economic
weakness, an improving outlook for inflation, and lower commodity
prices. Although the Fed did not act last quarter, central banks in Japan and
Germany lowered short-term rates in response to their respective economic
slowdowns.
Equities generally followed the lead of the fixed income markets during the
quarter. In the U.S., stocks powered ahead as lower rates combined with good
first quarter earnings to suggest equities represented good value. European
equity markets recovered first quarter losses, although they did not enjoy the
strong rally the U.S. market experienced. The exception to the worldwide equity
rally was Japan, where the remarkably strong bond rally attracted large amounts
of institutional money away from stocks, as the financial crisis in the banking
sector increased investor concerns.
Units of The Benchmark Funds are not bank deposits or obligations of, or
guaranteed, endorsed or otherwise supported by The Northern Trust Company, its
parent company, or its affiliates, and are not Federally insured or guaranteed
by the U.S. Government, Federal Deposit Insurance Corporation, Federal Reserve
Board, or any other governmental agency. The Benchmark Money Market Portfolios
seek to maintain a net asset value of $1.00 per unit, but there can be no
assurance that they will be able to do so on a continuous basis.
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
MARKET VIEW--CONTINUED
MONEY MARKET INVESTORS FOCUSED ON FED
Attention in the money markets during the second quarter was focused on the
Federal Reserve and its early July FOMC meeting. The Fed ended the waiting game
with an acknowledgment of economic slowing by easing the target federal funds
rate by 25 basis points on July 6. The market had anticipated the move, as
short-term bonds rallied during the quarter. The yield on the two-year Treasury
slipped from 6.80% at the end of March to an interim low of 5.40% in early
June. Its yield has subsequently moved back up to 5.54%, but is still
substantially below overnight rates, which are now pegged at 5.75%.
There are significant arguments for additional easing moves by the Fed, with
employment faltering, inflation low, retail sales sluggish, housing soft and
real growth expected to register close to a zero reading in the second quarter.
The move toward fiscal restraint on the federal, state and local levels also
argues for further monetary ease. The case against additional easing takes the
position that the current economic softness is only temporary, and that growth
is expected to resume later in the year.
Naturally, we cannot read the FOMC members' minds, but we expect that their
bias remains toward ease. Although further easing moves can't guarantee
declines in longer money market rates, the positive market momentum argues for
positioning portfolios in line with benchmarks.
July 10, 1995
2
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Maturity Amortized
Amount Interest Rate Date Cost
--------------------------------------------------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO
COMMERCIAL PAPER--83.2%
ASSET-BACKED SECURITIES--11.5%
Anchor Funding Corp.
<S> <C> <C> <C>
$ 9,016 6.059% 06/09/95 $ 9,004
Cooperative Association of Tractor
Dealers Inc.
3,400 6.038 06/19/95 3,390
13,000 6.078 06/27/95 12,943
Dynamic Funding Corp. (Fuji Bank IRC)
20,000 6.190 06/30/95 19,902
Eureka Securitization Inc.
20,000 6.028 06/15/95 19,953
Global Funding Corp.
27,000 6.033 06/12/95 26,950
8,000 6.042 06/20/95 7,975
Jet Funding Corp. (Bank of Tokyo LOC)
65,094 6.194 06/30/95 64,774
Pooled Certificate Corp.
19,146 6.106 07/17/95 18,999
Receivables Capital Corp.
18,399 6.031 06/16/95 18,353
7,000 6.032 06/20/95 6,977
Sheffield Receivables Corp.
35,620 6.201 06/01/95 35,620
Stellar Capital Corp. (Bank of Tokyo
IRC)
32,906 6.073 07/28/95 32,593
Strait Capital Corp. (Sumitomo Bank
Ltd. LOC)
54,117 6.035 06/30/95 53,855
8,000 6.247 06/30/95 7,960
----------
339,248
AUTOMOTIVE REPAIR SERVICE AND PARKING--1.4%
Hertz Funding Corp.
40,000 6.117 06/07/95 39,960
BUSINESS SERVICES--2.0%
International Lease Finance Corp.
8,000 6.201 06/01/95 8,000
50,000 6.213 07/07/95 49,695
----------
57,695
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
CHEMICALS AND ALLIED PRODUCTS--0.5%
Tsumura International Inc. (Sakura
Bank, Ltd. LOC)
<S> <C> <C> <C>
$15,000 6.060% 06/14/95 $ 14,967
COMMUNICATIONS--5.0%
GTE Finance Corp.
14,250 6.101 06/02/95 14,248
19,100 6.035 06/16/95 19,052
12,000 6.040 06/21/95 11,960
16,400 6.059 07/02/95 16,244
8,000 6.051 07/21/95 7,932
NYNEX Corp.
2,500 6.023 06/01/95 2,500
38,500 6.144 06/26/95 38,338
33,000 6.143 07/18/95 32,739
Phonemate Inc. (Sakura Bank, Ltd.
LOC)
2,800 6.124 06/23/95 2,789
----------
145,802
CONSTRUCTION, INDUSTRIAL MACHINES AND COMPUTER
EQUIPMENT--2.8%
Caterpillar Financial Australia Ltd.
19,000 6.033 06/06/95 18,984
4,934 6.038 06/14/95 4,922
43,439 6.028 06/20/95 43,301
Caterpillar Financial Services
15,000 6.201 06/01/95 15,000
----------
82,207
DOMESTIC DEPOSITORY INSTITUTIONS--0.8%
Barnett Banks Inc.
7,000 6.030 06/16/95 6,983
Fleet Financial Group, Inc.
14,000 6.082 06/01/95 14,000
----------
20,983
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
ELECTRIC SERVICES--3.6%
Public Service Electric & Gas Co.
<S> <C> <C> <C>
$50,000 6.229% 07/05/95 $ 49,711
10,000 6.041 07/10/95 9,935
23,000 6.049 07/11/95 22,847
8,765 6.068 07/13/95 8,704
15,000 6.049 07/19/95 14,880
----------
106,077
ELECTRONIC AND OTHER ELECTRICAL COMPONENTS--3.8%
Cooper Industries Inc.
18,500 6.009 06/02/95 18,497
45,000 6.050 06/14/95 44,902
5,000 6.034 06/28/95 4,977
General Electric Capital Corp.
5,000 6.129 07/07/95 4,970
Whirlpool Corp.
38,500 6.145 07/20/95 38,183
----------
111,529
EXECUTIVE, LEGISLATIVE AND GENERAL GOVERNMENT--4.9%
City of Anaheim, California (Credit
Suisse LOC)
54,400 6.238 08/02/95 54,403
City of New York, GO FRN Series: H-7
49,170 6.214 07/06/95 49,170
City of New York, GO FRN Series: B
32,000 6.214 07/06/95 32,000
The Methodist Hospital, Houston, TX
9,500 6.200 08/07/95 9,500
----------
145,073
FOREIGN DEPOSITORY INSTITUTIONS--12.4%
BEX America Finance, Inc.
35,000 6.189 06/28/95 34,840
50,000 6.004 11/21/95 48,599
Central Hispano N.A. Capital Corp.
65,000 6.196 06/29/95 64,692
5,000 6.115 07/18/95 4,961
Cheltenham & Gloucester Building
Society
25,000 6.146 06/29/95 24,882
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
Galicia Funding Corp. (Bayerische
Vereinsbank LOC)
<S> <C> <C> <C>
$15,000 6.196% 06/23/95 $ 14,944
10,000 6.254 07/21/95 9,915
Nationwide Building Society
43,000 6.196 06/30/95 42,789
23,000 6.144 07/20/95 22,811
San Paolo U.S. Financial Co.
10,000 6.054 07/10/95 9,935
Strategic Asset Funding Corp.
20,037 6.032 06/12/95 20,000
6,368 6.032 06/26/95 6,341
5,970 6.098 07/10/95 5,932
20,000 6.074 08/31/95 19,698
5,000 6.093 08/31/95 4,924
Unibanco-Uniao de Bancos Brasileiros
(Westdeutsche Landesbank
Girozentrale LOC)
30,000 6.263 06/15/95 29,928
----------
365,191
GENERAL MERCHANDISE STORES--0.6%
Sears Roebuck Acceptance Corp.
20,000 6.035 06/16/95 19,950
HOLDING AND OTHER INVESTMENT COMPANIES--2.3%
Central & Southwest Corp.
28,600 6.049 07/19/95 28,371
CSW Credit Inc.
6,000 6.023 06/08/95 5,993
23,800 6.031 06/16/95 23,741
6,000 6.036 06/21/95 5,980
Enterprise Funding Inc.
5,174 6.140 08/03/95 5,119
----------
69,204
MEASURING, ANALYZING AND CONTROL INSTRUMENTS--0.6%
Xerox Corp.
2,450 6.012 06/06/95 2,448
4,000 6.026 06/20/95 3,987
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Interest Rate Maturity Date Amortized Cost
---------------------------------------------------------------------------------------------
Xerox Credit Corp.
<S> <C> <C> <C>
$ 3,775 6.007% 06/01/95 $ 3,775
3,000 6.019 06/13/95 2,995
4,250 6.025 06/19/95 4,237
----------
17,442
NONDEPOSITORY BUSINESS CREDIT INSTITUTIONS--5.2%
Associates Corp. of North America
137,000 6.181 06/01/95 137,000
Spiegel Funding Corp. (Dresdner Bank
LOC)
8,000 6.092 07/07/95 7,951
Vehicle Services America Ltd.
(NationsBank Texas LOC)
7,000 6.029 06/09/95 6,990
----------
151,941
NONDEPOSITORY PERSONAL CREDIT INSTITUTIONS--3.4%
Countrywide Funding Corp.
51,500 6.043 06/01/95 51,500
29,500 6.054 06/06/95 29,476
19,000 6.029 06/16/95 18,953
----------
99,929
REAL ESTATE--2.6%
FBA Properties, Inc. (NationsBank
Georgia LOC)
14,650 6.057 06/06/95 14,638
Hahn Issuing Corp. II (Citibank LOC)
14,975 6.030 06/16/95 14,938
One Embarcadero Center Venture (Dai-
Ichi Kangyo Bank LOC)
8,563 6.066 07/18/95 8,496
SRD Finance Inc. (Industrial Bank of
Japan LOC)
17,200 6.035 06/15/95 17,160
SRD Finance Inc. (Sumitomo Bank Ltd.
LOC)
14,000 6.035 06/15/95 13,967
Three Embarcadero Center Venture
(Dai-Ichi Kangyo Bank LOC)
5,563 6.065 07/07/95 5,529
----------
74,728
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
SECURITY AND COMMODITY BROKER/DEALERS--4.4%
Lehman Brothers Holdings Inc.
<S> <C> <C> <C>
$55,000 6.007% 06/01/95 $ 55,000
Merrill Lynch & Co. Inc.
75,000 6.093 07/07/95 74,549
----------
129,549
TRANSPORTATION--15.4%
American Honda Finance Corp.
17,000 6.133 07/24/95 16,849
8,000 6.140 07/24/95 7,929
25,000 6.077 08/03/95 24,739
19,000 6.081 08/07/95 18,788
BMW US Capital Corp.
27,000 6.012 06/05/95 26,982
13,000 6.024 06/09/95 12,985
14,243 6.029 06/14/95 14,214
6,976 6.031 06/19/95 6,955
30,000 6.042 06/27/95 29,870
Chrysler Financial Corp.
31,000 6.030 06/09/95 30,959
12,000 6.033 06/13/95 11,977
44,000 6.032 06/27/95 43,809
38,000 6.169 07/06/95 37,768
Ford Motor Credit Corp.
22,400 6.203 07/07/95 22,263
General Motors Acceptance Corp.
50,000 6.007 06/01/95 50,000
25,000 6.251 06/01/95 25,000
General Motors Acceptance Corp.
Canada
1,000 6.214 06/06/95 999
19,000 6.299 06/28/95 18,913
25,000 6.066 06/29/95 24,883
10,000 6.299 07/05/95 9,942
20,000 6.123 08/16/95 19,745
----------
455,569
---------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $2,447,044
---------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
----------------------------------------------------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
CORPORATE NOTE--0.9%
Beneficial Corporation FRN
<S> <C> <C> <C>
$ 25,000 6.270% 02/01/96 $ 25,000
----------------------------------------------------------------------------------------------------
TOTAL CORPORATE NOTE $ 25,000
----------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSITS--4.1%
DOMESTIC DEPOSITORY INSTITUTIONS--2.2%
First Alabama Bank
$ 10,000 6.050% 06/21/95 $ 10,000
16,000 6.020 08/07/95 16,000
39,000 6.000 09/06/95 39,000
----------
65,000
FOREIGN DEPOSITORY INSTITUTIONS--1.9%
ABN-Amro Bank, New York
25,000 6.090 07/05/95 25,001
Sanwa Bank, Ltd., New York
20,000 6.115 09/29/95 20,000
Societe Generale, New York
12,000 6.000 09/12/95 12,001
----------
57,002
----------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT $ 122,002
----------------------------------------------------------------------------------------------------
EURODOLLAR DEPOSITS/
CERTIFICATES OF DEPOSIT--9.9%
DOMESTIC DEPOSITORY INSTITUTIONS--6.0%
Comerica Bank, Grand Cayman
$ 28,000 6.156% 06/01/95 $ 28,000
National Bank of Detroit, London
99,500 5.969 06/02/95 99,500
Society National Bank, Grand Cayman
50,000 6.156 06/01/95 50,000
----------
177,500
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Interest Rate Maturity Date Amortized Cost
---------------------------------------------------------------------------------------------
FOREIGN DEPOSITORY INSTITUTIONS--3.9%
Berliner Handels Und Frankfurter,
Grand Cayman
<S> <C> <C> <C>
$ 10,879 6.250% 06/01/95 $ 10,879
Commerzbank, London
75,000 6.160 07/06/95 75,001
Sumitomo Bank Ltd., London
4,000 6.180 06/30/95 4,000
Swedbank, Grand Cayman
25,000 6.187 06/01/95 25,000
----------
114,880
-------------------------------------------------------------------------------------------------------
TOTAL EURODOLLAR DEPOSITS/ CERTIFICATES OF
DEPOSIT $ 292,380
-------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY--2.2%
Federal Home Loan Bank FRN
$ 66,000 4.257% 06/19/95 $ 65,729*
-------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY $ 65,729
-------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $2,952,155**
-------------------------------------------------------------------------------------------------------
</TABLE>
*The value of this security, including the value of a put agreement with
Northern Trust Corporation, approximates amortized cost. See note 3 to the
financial statements.
**The amount stated also represents cost for federal income tax purposes.
See accompanying notes to financial statements.
6
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
--------------------------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
COMMERCIAL PAPER--2.7%
Fidelity Federal Bank
(Federal Home Loan Bank--San Francisco LOC)
<S> <C> <C> <C>
$ 5,740 5.900% 07/17/95 $ 5,697
12,000 5.900 07/21/95 11,902
--------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $ 17,599
--------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--67.7%
FEDERAL FARM CREDIT BANK FRN--5.5%
$ 36,000 4.155% 06/19/95 $ 35,856*
FEDERAL HOME LOAN BANK DISCOUNT NOTES--15.0%
8,625 5.960 07/03/95 8,579
20,000 5.910 07/27/95 19,816
15,000 5.990 08/04/95 14,840
15,000 5.930 08/07/95 14,834
11,000 5.880 08/17/95 10,862
15,000 6.030 09/01/95 14,769
10,000 5.990 09/27/95 9,804
5,000 6.130 11/27/95 4,848
--------
98,352
FEDERAL HOME LOAN BANK FRN--0.6%
4,000 4.257 06/19/95 3,984*
FEDERAL HOME LOAN MORTGAGE CORPORATION
DISCOUNT NOTES--18.0%
32,711 5.860 07/05/95 32,530
30,501 5.900 07/20/95 30,256
13,386 5.920 07/31/95 13,254
10,395 5.870 08/01/95 10,292
20,000 5.920 08/03/95 19,793
12,305 5.900 08/11/95 12,162
--------
118,287
FEDERAL NATIONAL MORTGAGE ASSOCIATION
DISCOUNT NOTES--26.1%
10,000 5.900 06/16/95 9,975
10,000 5.990 06/30/95 9,952
10,000 5.900 07/21/95 9,918
20,000 5.900 07/31/95 19,803
13,000 5.920 08/02/95 12,867
6,100 5.870 08/04/95 6,036
35,000 5.790 08/30/95 34,493
Principal
Amount Interest Rate Maturity Date Amortized Cost
---------------------------------------------------------------------------------------------
$20,000 5.870% 09/29/95 $ 19,609
40,000 5.800 10/10/95 39,156
10,000 5.920 10/26/95 9,758
--------
171,567
FEDERAL NATIONAL MORTGAGE ASSOCIATION FRN--1.7%
11,000 6.020 08/25/95 11,000
TENNESSEE VALLEY AUTHORITY DISCOUNT
NOTE--0.8%
5,000 5.900 06/19/95 4,985
-----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
$444,031
-----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--32.0%
Bear Stearns & Co., Dated 05/31/95,
Repurchase Price $65,011
(Collateralized by U.S. Government
Securities)
$ 65,000 6.150 06/01/95 $ 65,000
First Boston Corp., Dated 05/31/95,
Repurchase Price $130,022
(Collateralized by U.S. Government
Securities)
130,000 6.100 06/01/95 130,000
Salomon Bros., Inc., Dated 05/31/95,
Repurchase Price $15,220
(Collateralized by U.S. Government
Securities)
15,217 6.090 06/01/95 15,217
-----------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $210,217
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $671,847**
-----------------------------------------------------------------------------------------------------
</TABLE>
*The value of this security, including the value of a put agreement with
Northern Trust Corporation, approximates amortized cost. See note 3 to the
financial statements.
**The amount stated also represents cost for federal income tax purposes.
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
-------------------------------------------------------------------------------------------------------
GOVERNMENT SELECT PORTFOLIO
U.S. GOVERNMENT AGENCIES--97.7%
FEDERAL FARM CREDIT BANK DISCOUNT NOTES--10.4%
<S> <C> <C> <C>
$13,000 5.922% 06/05/95 $ 12,993
4,500 5.889 06/08/95 4,497
3,995 5.907 06/12/95 3,988
14,750 5.909 06/16/95 14,712
1,470 5.951 07/06/95 1,462
9,365 5.944 07/11/95 9,304
5,500 5.938 07/17/95 5,459
4,035 5.989 09/29/95 3,956
--------
56,371
FEDERAL HOME LOAN BANK DISCOUNT NOTES--71.5%
4,195 6.008 06/02/95 4,194
2,940 5.965 06/05/95 2,938
15,000 6.040 06/05/95 14,990
16,700 5.890 06/09/95 16,678
10,000 5.939 06/13/95 9,980
37,000 5.718 06/16/95 36,909
5,000 6.051 06/19/95 4,985
9,700 5.948 06/20/95 9,670
12,900 5.914 06/20/95 12,860
34,900 5.948 06/26/95 34,757
2,390 5.955 06/27/95 2,380
7,300 5.960 07/03/95 7,262
11,000 5.982 07/03/95 10,942
10,000 6.050 07/03/95 9,947
6,000 6.051 07/05/95 5,966
10,000 5.958 07/10/95 9,936
10,060 5.962 07/17/95 9,984
5,000 5.948 07/21/95 4,959
10,000 5.949 07/27/95 9,909
10,000 6.102 07/28/95 9,905
20,000 6.118 07/28/95 19,810
10,000 6.011 08/01/95 9,900
12,000 5.786 08/03/95 11,877
5,000 5.958 08/04/95 4,948
15,000 6.113 08/04/95 14,840
10,000 6.047 08/07/95 9,890
11,960 6.048 08/07/95 11,828
9,000 5.865 08/11/95 8,896
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount/Shares Rate Date Cost
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$10,000 6.014% 08/14/95 $ 9,879
5,000 6.043 08/14/95 4,939
8,580 5.945 08/17/95 8,472
15,000 5.999 08/17/95 14,811
9,400 6.014 08/23/95 9,272
2,790 6.097 09/05/95 2,746
5,000 6.144 09/27/95 4,902
10,000 6.094 10/02/95 9,797
---------
385,958
FEDERAL HOME LOAN BANK FRN--1.9%
5,000 4.037 06/19/95 4,979*
5,000 6.088 10/20/95 4,998
---------
9,977
TENNESSEE VALLEY AUTHORITY DISCOUNT NOTES--13.9%
9,600 6.106 06/05/95 9,594
20,000 5.942 06/19/95 19,941
3,600 5.948 06/19/95 3,589
25,000 5.648 06/20/95 24,923
8,000 5.946 06/20/95 7,975
4,000 5.981 07/12/95 3,973
5,000 5.966 07/18/95 4,962
---------
74,957
---------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $ 527,263
---------------------------------------------------------------------------------------------------
OTHER--4.0%
Dreyfus Treasury Prime Money Market
Fund
$21,798 5.800 -- $ 21,798
---------------------------------------------------------------------------------------------------
TOTAL OTHER $ 21,798
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $ 549,061**
---------------------------------------------------------------------------------------------------
</TABLE>
*The value of this security, including the value of a put agreement with
Northern Trust Corporation, approximates amortized cost. See note 3 to the
financial statements.
**The amount stated also represents cost for federal income tax purposes.
See accompanying notes to financial statements.
8
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
MUNICIPAL INVESTMENTS--101.7%
ALABAMA--1.8%
City of Columbia PCR Revenue VRDN,
Series: 1995 A, Alabama Power Co.
Project (Alabama Power Gtd.)
<S> <C> <C> <C>
$ 4,700 4.400% 06/01/95 $ 4,700
City of Greenville IDR VRDN, Series:
1992, Allied-Signal Project (Allied-
Signal, Inc. Gtd.)
1,350 3.900 06/07/95 1,350
City of Mobile PCR Revenue Refunding
VRDN, Series: 1994 A, Alabama Power
Co. Project (Alabama Power Gtd.)
3,600 4.400 06/01/95 3,600
City of Parrish PCR VRDN, Series:
1994 A, Alabama Power Co. Project
(Alabama Power Gtd.)
2,000 4.400 06/01/95 2,000
----------
11,650
ALASKA--0.3%
Alaska Housing Finance Agency VRDN,
Series: 1994,
Merrill P-Floats PT-37 (FNMA
Securities Colld.)
1,700 4.250 06/07/95 1,700
CALIFORNIA--24.9%
California Department of Water
Resources VRDN, Series: SG-5,
Central Valley Project
5,000 4.250 06/07/95 5,000
California Housing Finance Authority,
Series: 1988 D, Home Mortgage
Revenue Tender Bonds
6,500 4.750 08/01/95 6,500
California Housing Finance Authority
Revenue Bonds VRDN, Series: 1993 B,
Merrill P-Floats, Series: PA-58 (CA
Housing Finance Agency-Home
Mortgage)
200 4.100 06/07/95 200
City of Irvine Assessment District
VRDN, No. 89-10 (National
Westminster Bank LOC)
5,930 4.250 06/01/95 5,930
City of Irvine Unified School
District TRAN**
5,800 4.500 07/28/95 5,807
Irvine Ranch Water District GO VRDN
(Bank of America NT & SA LOC)
6,000 4.250 06/01/95 6,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
Irvine Ranch Water District VRDN
(Industrial Bank of Japan LOC)
<S> <C> <C> <C>
$ 620 4.250% 06/01/95 $ 620
Irvine Ranch Water District VRDN,
Series: 1985 B, Consolidated
Refunding (Sumitomo Bank Ltd. LOC)
4,100 4.250 06/01/95 4,100
Irvine Ranch Water District VRDN,
Series: 1993 A (Bank of America NT &
SA LOC)
3,000 4.250 06/01/95 3,000
Irvine Ranch Water District VRDN,
Series: 1993 B (Morgan Guaranty
Trust Co. LOC)
23,800 4.450 06/01/95 23,800
Los Angeles Community Redevelopment
Agency VRDN, Bunker Hill Project,
TOB BTP-22 (MBIA Insured)
5,595 4.000 06/07/95 5,595
Los Angeles County TRAN
3,000 4.500 06/30/95 3,002
Sacramento Unified School District
TRAN
5,000 5.000 11/10/95 4,999
San Bernardino County Board of
Education TRAN
5,000 4.250 07/28/95 5,002
San Juan Unified School District TRAN
5,000 4.750 09/20/95 4,994
State of California GO
5,000 11.000 03/01/96 5,222
State of California GO VRDN, Citibank
TOB (FGIC Insured)
5,920 4.250 06/07/95 5,920
State of California GO VRDN, Tender
Option Custodial Receipt (MBIA
Insured)
2,500 4.050 06/07/95 2,500
State of California PCR VRDN, Series:
1986 B, Southern California Edison
Project (Southern California Edison
Gtd.)
13,900 4.700 06/01/95 13,900
State of California RAN
3,000 5.000 06/28/95 3,001
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
CALIFORNIA--CONTINUED
State of California RAW, Series: 1994
C (Westdeutsche Landesbank
Girozentral LOC)
<S> <C> <C> <C>
$ 16,870 4.250% 06/07/95 $ 16,870
12,805 4.300 08/22/95 12,805
12,500 5.750 04/25/96 12,617
----------
157,384
COLORADO--1.4%
Broomfield IDR VRDN, Series: 1984,
Buckeye Investment Project (Bank of
America NT & SA LOC)
1,600 4.300 06/07/95 1,600
Colorado Housing Finance Authority
Revenue Bond, Series: C, Housing
Revenue Bond Project
3,260 4.750 09/01/95 3,260
Moffat County PCR VRDN, Series: 1984
(National Rural Utility Cooperative
Finance Gtd.)
1,500 3.850 06/07/95 1,500
Regional Transportation District
VRDN, Series: A (Bank of Tokyo LOC)
2,225 3.700 06/07/95 2,225
----------
8,585
DISTRICT OF COLUMBIA--0.4%
District of Columbia VRDN, Series:
1986 A, American University Project
(National Westminster Bank LOC)
1,000 3.750 06/07/95 1,000
District of Columbia VRDN, Series:
1992, Abraham & Laura Lisner Home
Project (NationsBank Georgia LOC)
1,300 3.700 06/07/95 1,300
----------
2,300
DELAWARE--0.4%
State of Delaware GO VRDN, Series:
1994 A, BTP-73
2,570 4.200 06/07/95 2,570
FLORIDA--8.4%
Atlantic Beach VRDN, Series: 1994 B,
Fleet Landing Project (Barnett Bank
of Jacksonville LOC)
3,500 4.450 06/01/95 3,500
County of Dade School District GO
VRDN, Series: 1994, BTP, (MBIA
Insured)
5,535 4.200 06/07/95 5,535
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
County of Dade Special Obligation
VRDN, Capital Asset Acquisition
Series: 1990 (Sanwa Bank LOC)
<S> <C> <C> <C>
$ 200 3.750% 06/07/95 $ 200
Eustis Health Facilities VRDN,
Series: 1985, Waterman Medical
Center Project (Banque Paribas LOC)
8,425 4.000 06/07/95 8,425
Florida Department of Environmental
Protection VRDN, Series: 1994 A,
BTP-64 (MBIA Insured)
7,585 4.200 06/07/95 7,585
Florida State Board of Education
Capital Outlay VRDN, Series: 1990 B,
BTP-52
3,360 4.150 06/07/95 3,360
Florida State Board of Education GO
VRDN, Merrill P-Floats
1,000 4.200 06/07/95 1,000
Florida State Board of Education
VRDN, Series: 1993 E Eagle Trust
Series: 940901
6,000 4.250 06/07/95 6,000
Indian River County Hospital District
CP, Series: 1990 (Kredietbank LOC)
4,000 4.350 07/20/95 4,000
Jacksonville Electric Authority VRDN,
Series: 7, St. John's River Power
System BTP-20
10,088 4.275 06/07/95 10,088
Jacksonville Health Facilities
Authority VRDN, Series: 1990,
Baptist Health Project (Barnett
Banks of Jacksonville LOC)
900 4.450 06/01/95 900
Palm Beach County Housing Finance
Authority VRDN, Series: 1988 D (New
England Mutual Gtd.)
2,200 3.750 06/07/95 2,200
----------
52,793
GEORGIA--2.5%
County of Elbert Development
Authority IDR VRDN, Series: 1992,
Allied-Signal Project (Allied-
Signal, Inc., Gtd.)
2,430 3.900 06/07/95 2,430
County of Fulton Development
Authority IDR VRDN, General Motors
Project (General Motors Corp. Gtd.)
1,600 3.950 06/07/95 1,600
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
GEORGIA--CONTINUED
Georgia State Residence & Finance
Authority, Housing Revenue Bond,
Series: 1987 B, Single Family
Housing Program TOB
<S> <C> <C> <C>
$ 1,550 4.200% 06/01/95 $ 1,550
Marietta Housing Authority Revenue
Bond, Falls at Bells Ferry (U.S.
Government Securities Colld.)
1,985 5.250 01/15/96 1,985
Metropolitan Atlanta Rapid Transit
Authority VRDN, Series: A, BTP-58
(AMBAC Insured)
5,965 4.200 06/07/95 5,965
State of Georgia GO VRDN, Series 1992
C, BTP-79
2,500 4.100 06/07/95 2,500
----------
16,030
ILLINOIS--4.7%
City of Naperville IDR VRDN, General
Motors Corp. Project (General Motors
Corp. Gtd.)
1,680 3.950 06/07/95 1,680
Illinois Development Finance
Authority PCR VRDN, Series: 1994,
UNO-VEN Company Project (NBD Bancorp
LOC)
700 3.800 06/07/95 700
Illinois Health Facilities Authority
VRDN, Series: 1989 A, Franciscan
Sisters Project (Commonwealth Bank
of Australia LOC)
1,875 3.650 06/07/95 1,875
Illinois Health Facilities Authority
VRDN, Series: 1991, West Suburban
Medical Center Project (First
National Bank of Chicago LOC)
150 3.850 06/07/95 150
Illinois Health Facilities Authority
VRDN, Series: 1994, Riverside Health
System (LaSalle National Bank LOC)
10,600 4.100 06/07/95 10,600
Illinois Health Facilities Authority
VRDN, Series: 1994, Streeterville
Corp. (First National Bank of
Chicago LOC)
4,500 3.850 06/07/95 4,500
Illinois Health Facilities Authority
VRDN, Series: 1995, Healthcor
Project (Fuji Bank LOC)
5,950 4.000 06/07/95 5,950
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
-------------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority
VRDN, Series: E, Hospital Sisters
Service Project (MBIA Insured)
<S> <C> <C> <C>
$ 300 3.700% 06/07/95 $ 300
Regional Transportation Authority
Revenue VRDN, Series: D (FGIC
Insured)
4,000 4.300 06/07/95 4,000
--------
29,755
INDIANA--2.0%
Indiana Bond Bank Advance Funding GO,
Series: 1995 A-1
10,000 5.250 07/10/95 10,006
Indiana Toll Road Finance Authority
VRDN, Series: BTP-34 (U.S.
Government Securities Colld.)
2,345 4.100 06/07/95 2,345
--------
12,351
IOWA--0.2%
City of Davenport GO
1,000 4.500 06/01/95 1,000
KANSAS--0.1%
City of Olathe VRDN, Series: 1989 A,
Pooled Education
Loan Program (Hong Kong & Shanghai
Banking Corp. LOC)
200 3.650 06/07/95 200
City of Topeka Sewer System Revenue
VRDN,
Series: 1984 (MBIA Insured)
700 4.050 06/01/95 700
--------
900
KENTUCKY--1.4%
City of Danville Lease Revenue CP,
Municipal Pooled
Lease Program (PNC Bank LOC)
1,455 4.250 07/21/95 1,455
2,030 4.300 08/10/95 2,030
Kentucky Higher Education Student
Loan Corporation,
Series: 1991 E (Sumitomo Bank Ltd.
LOC)
2,000 3.800 06/07/95 2,000
Louisville & Jefferson County Water &
Sewer VRDN,
Sewer & Drainage District Project
(PNC Bank LOC)
3,500 4.150 06/07/95 3,500
--------
8,985
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
LOUISIANA--0.6%
State of Louisiana GO CP, Series:
1991 A (Fuji Bank LOC)
<S> <C> <C> <C>
$ 4,000 4.050% 06/05/95 $ 4,000
MARYLAND--3.3%
Anne Arundel County Revenue Refunding
Bonds, Windgate Project (Morgan
Guaranty Trust Co. LOC)
3,500 4.200 12/29/95 3,494
City of Baltimore IDA VRDN, Series:
1986, Capital Acquisition Program
(Dai-Ichi Kangyo Bank LOC)
6,100 3.750 06/07/95 6,100
Industrial Development Finance
Authority VRDN, Series: 1989,
Liberty Medical Center Project
(NationsBank Corp. LOC)
1,000 3.700 06/07/95 1,000
Montgomery County VRDN, Series: 1993
A, Single Family Housing Program,
Merrill P-Floats
4,800 4.200 06/07/95 4,800
Washington Suburban Sanitary District
VRDN, Series 1994 G, Eagle Trust
5,300 4.250 06/07/95 5,300
----------
20,694
MASSACHUSETTS--0.9%
Massachusetts Municipal Public
Utility VRDN, Series: 1994 B, BTP-67
(MBIA Insured)
5,760 4.150 06/07/95 5,760
MICHIGAN--0.3%
Berrien County Economic Development
Corp. PCR VRDN, Allied Signal
Project (Allied-Signal, Inc. Gtd.)
700 3.850 06/07/95 700
Midland County Economic Development
Corp. IDR VRDN, The Dow Chemical
Company Project (Dow Chemical Gtd.)
1,100 4.000 06/01/95 1,100
----------
1,800
MINNESOTA--0.8%
Rochester Health Care Facility VRDN,
Mayo Medical Center, Merrill P-
Floats PA-96
4,865 4.200 06/07/95 4,865
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
MISSOURI--1.0%
Callaway County IDA Health System
VRDN, Series: 1995 CHAMA, Inc.
(NationsBank Tennessee LOC)
<S> <C> <C> <C>
$ 6,650 4.150% 06/07/95 $ 6,650
NEVADA--0.6%
Nevada Housing Division Housing
Revenue Bonds Single Family Program
Senior Bonds, A-1
3,690 4.500 10/01/95 3,690
NEW HAMPSHIRE--0.6%
New Hampshire Higher Education &
Health VRDN, Dartmouth College; ML
SG Trust SG-19
3,600 4.300 06/07/95 3,600
NEW YORK--13.9%
City of New York GO RAN, Series: 1995
B
5,000 4.183 06/30/95 5,000
8,000 3.941 06/30/95 8,000
City of New York GO VRDN, Series:
1991 E (Industrial Bank of Japan
LOC)
5,500 4.750 06/01/95 5,500
City of New York GO VRDN, Series:
1993 B (FGIC Insured)
9,900 4.750 06/01/95 9,900
City of New York GO VRDN, Series:
1994 C (Norinchukin Bank LOC)
2,000 4.800 06/01/95 2,000
City of New York GO VRDN, Series:
1994 H-3 (FSAC Insured)
5,000 4.230 07/26/95 5,000
City of New York GO VRDN, Subseries:
B-2 (Dai-Ichi Kangyo Bank LOC)
3,300 4.800 06/01/95 3,300
Marine Midland Premium Loan Trust
VRDN, Series: 1991 B (Hong Kong &
Shanghai Banking Corp. LOC)
488 4.350 06/07/95 488
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
NEW YORK--CONTINUED
New York City Municipal Water Finance
Authority VRDN, Series: 1995 A,
Water & Sewer System Revenue Bonds
(FGIC Insured)
<S> <C> <C> <C>
$ 10,000 4.750% 06/01/95 $ 10,000
New York Local Government Assistance
Co. VRDN, Series: 1991 C, Paine
Webber Municipal Trust, Series: 1994
PW 12 (U.S. Govt. Securities Colld.)
1,500 3.750 06/07/95 1,500
New York State Energy Research &
Development Authority, Series: A,
Niagara Mohawk Power Project
(Toronto-Dominion Bank LOC)
22,800 4.800 06/01/95 22,800
New York State Environment Facilities
PCR VRDN, Eagle Trust, Series:
943204 (CGIC Insured)
5,900 4.250 06/07/95 5,900
New York State Mortgage Agency TOB,
Series: 12
3,345 4.500 10/01/95 3,345
Pooled Puttable Floating Option VRDN,
Series: PPT2
5,000 4.300 06/07/95 5,000
----------
87,733
NORTH CAROLINA--0.3%
City of Durham Water & Sewer Utility
Revenue VRDN, Series: 1994
800 3.600 06/07/95 800
North Carolina Medical Care VRDN,
Series: 1988 Park Ridge Hospital
Project (NationsBank Corporation
LOC)
1,400 4.000 06/07/95 1,400
----------
2,200
OHIO--1.1%
City of Greenville VRDN, Series:
1992, Allied-Signal Project (Allied-
Signal Gtd.)
1,000 3.900 06/07/95 1,000
Cleveland School District Special
Obligation RAN (AMBAC Insured)
1,000 8.050 06/01/95 1,000
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
Red Roof Inns Mortgage Bond Trust
VRDN (National City Bank LOC)
<S> <C> <C> <C>
$ 4,774 4.450% 06/15/95 $ 4,774
----------
6,774
OREGON--0.4%
City of Medford Hospital Facility
Authority VRDN, Series: 1991, Rogue
Valley Project (Banque Paribas LOC)
2,700 3.750 06/07/95 2,700
PENNSYLVANIA--6.4%
County of Allegheny Environmental
Improvement IDA CP, Series: 1986,
USX Corp. Project (Norinchukin Bank
LOC)
1,600 4.300 07/20/95 1,600
5,000 4.250 08/07/95 5,000
County of Allegheny Environmental
Improvement IDA CP, Series: 1987,
USX Corp. Project (Norinchukin Bank
LOC)
2,900 4.250 08/07/95 2,900
County of Allegheny Hospital
Development Authority VRDN, Health
Facilities Authority Central Blood
Bank Project (PNC Bank LOC)
300 4.300 06/07/95 300
County of Allegheny Hospital
Development Authority VRDN, Series:
1994, Harmarville Rehabilitation
Project (PNC Bank LOC)
1,000 4.300 06/07/95 1,000
County of Allegheny Hospital
Development Authority VRDN, Series:
B-1, Presbyterian University
Hospital (PNC Bank LOC)
575 3.950 06/01/95 575
County of Allegheny IDA CP, Series
1990: A, Duquesne Light Company
(Barclays Bank LOC)
2,725 4.750 11/30/95 2,725
County of Allegheny Port Authority
Grant Anticipation Notes (PNC Bank
LOC)
2,600 4.100 07/03/95 2,599
County of Schuylkill IDA IDR VRDN,
Gilberton Power Project (Mellon Bank
NA LOC)
5,750 3.650 06/07/95 5,750
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
Delaware Valley Regional Finance
Authority VRDN, Series: 1985 A-D
(Hong Kong & Shanghai Bank LOC)
<S> <C> <C> <C>
$ 2,900 3.700% 06/07/95 $ 2,900
Philadelphia Authority for Industrial
Development Revenue IDR VRDN,
Franklin Institute Project (PNC Bank
LOC)
4,300 4.300 06/07/95 4,300
School District of Philadelphia TRAN,
Series: 1994-1995
7,000 4.750 06/30/95 7,001
Southeastern Transportation Authority
Limited Revenue Notes, Series: 1994
(Canadian Imperial Bank of Commerce
LOC)
3,645 4.600 06/01/95 3,645
----------
40,295
RHODE ISLAND--0.5%
State of Rhode Island Public Building
Authority VRDN, State Public Project
(AMBAC Insured)
3,150 4.250 06/07/95 3,150
SOUTH CAROLINA--0.4%
County of Lexington IDR VDRN, Series:
1992, Allied-Signal Project (Allied-
Signal, Inc. Gtd.)
700 3.900 06/07/95 700
County of Lexington IDR VRDN, Series:
1992 A, Allied-Signal Project
(Allied-Signal, Inc. Gtd.)
1,880 3.900 06/07/95 1,880
----------
2,580
TENNESSEE--1.9%
City of Chattanooga-Hamilton Hospital
Authority VRDN, Series: 1987,
Erlanger Medical Center Project
1,200 4.600 06/01/95 1,200
Lauderdale County School Board BAN
GO, Series: 1995
2,550 4.900 03/01/96 2,550
Montgomery County Public Building
Authority VRDN, Series: 1995
(NationsBank Tennessee LOC)
8,000 4.100 06/07/95 8,000
----------
11,750
TEXAS--8.1%
City of Abilene Health Facilities
Development Authority VRDN, Series:
1990, Hendrick Medical Center
Project (Banque Paribas LOC)
2,400 3.900 06/07/95 2,400
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
County of Bexar Multifamily Housing
Finance Authority VRDN, Series: 1988
A, Creighton's Mill Development
Project (New England Mutual Gtd.)
<S> <C> <C> <C>
$ 2,500 4.200% 06/07/95 $ 2,500
County of Harris Toll Road Unlimited
VRDN, Series: 1994 A, Citicorp Eagle
Trust Series: 954302
5,500 4.250 06/07/95 5,500
Pooled Puttable Floating Option VRDN,
Series: PP1 (AMBAC, FGIC, & MBIA
Insured)
16,135 4.300 06/07/95 16,135
Port of Corpus Christi IDC VRDN, Koch
Refining Co. Project (Koch
Industries Gtd.)
1,000 3.650 06/07/95 1,000
State of Texas TRAN, Custodial Trust
Receipts
16,700 4.300 08/31/95 16,700
Texas Turnpike Authority Dallas Toll
Revenue Bonds VRDN, Series: 1990,
BTP-60 (AMBAC Insured)
5,049 4.150 06/07/95 5,049
Texas Water Development Board VRDN,
Series: 1992 A,
2,100 4.600 06/01/95 2,100
----------
51,384
UTAH--2.8%
Intermountain Power Agency VRDN,
Series: H, BTP-48A
5,000 4.275 06/07/95 5,000
Intermountain Power Agency VRDN,
Series: I, BTP-47A
12,485 4.275 06/07/95 12,485
----------
17,485
VIRGINIA--2.5%
County of Loudoun IDA Residential
Care VRDN, Series: 1994 B, Falcons
Landing (Banque Paribas LOC)
7,300 4.450 06/01/95 7,300
City of Louisa PCR CP, Series: 1987,
(Virginia Electric Power Company
Gtd.)
1,500 4.300 06/08/95 1,500
City of Roanoke IDA VRDN, Series:
1994, Cooper Industries Project
(Cooper Industries Gtd.)
6,300 3.900 06/07/95 6,300
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
VIRGINIA--CONTINUED
County of Prince William VRDN,
Series: 1993, Tender Option
Custodial Receipt (FGIC Insured)
<S> <C> <C> <C>
$ 785 4.200% 06/07/95 $ 785
----------
15,885
WASHINGTON--4.5%
Kent Economic Development Corporation
IDR VRDN, Associated Grocers Project
(Seattle-First National Bank LOC)
4,200 4.512 06/07/95 4,200
State of Washington GO VRDN, Series:
A
5,000 4.250 06/07/95 5,000
Washington Public Power Supply System
Nuclear Project #2 PCR VRDN, Series:
1992 A, Tender Option Custodial
Receipt MGT-4A
600 4.250 06/07/95 600
Washington Public Power Supply System
Nuclear Project #2 VRDN, Series:
1994 A, BTP-61 (Washington Public
Power Supply System Gtd.)
5,035 4.250 06/07/95 5,035
Washington Public Power Supply System
PCR VRDN, Series: 1992 A, Puttable
Tax Exempt Receipts
1,100 4.250 06/07/95 1,100
Washington Public Power Supply System
VRDN, Series: 1990 B, BTP-85
(Washington Public Power Supply
System Colld.)
3,256 4.150 06/07/95 3,256
Washington Public Power Supply System
VRDN, Series: SG-15, Merrill
Lynch/Society General Municipal
Trust (MBIA Insured)
9,195 4.300 06/07/95 9,195
----------
28,386
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
---------------------------------------------------------------------------------------------------
WISCONSIN--2.3%
West Allis West Milwaukee School
District TRAN
<S> <C> <C> <C>
$ 2,000 4.750% 08/22/95 $ 2,002
Wisconsin Housing and Economic
Development Authority, Homeownership
Revenue Bonds, Series: 1990 D
6,450 4.750 09/01/95 6,450
Wisconsin Housing and Economic
Development Authority Homeownership
Revenue Bonds, Series: A-B
6,285 4.550 09/01/95 6,284
----------
14,736
---------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $ 642,120
---------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Interest Maturity Amortized
Shares Rate Date Cost
------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
OTHER--1.5%
AIM Tax Free Money Market Fund
<S> <C> <C> <C>
1,000 3.920% -- $ 1,000
Dreyfus Tax Exempt Cash Management
Fund
3,400 3.920 -- 3,400
Federated Tax Free Trust Money Market
Fund #15
2,997 3.990 -- 2,997
Federated Tax Free Trust Money Market
Fund #73
819 3.750 -- 819
Provident Muni Fund
1,118 3.840 -- 1,117
------------------------------------------------------------------------------------------------------
TOTAL OTHER $ 9,333
------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $ 651,453*
------------------------------------------------------------------------------------------------------
</TABLE>
CREDITWORTHINESS (QUALITY)
DISTRIBUTION OF MUNICIPAL
INVESTMENTS AS OF MAY 31, 1995
(UNAUDITED):
<TABLE>
<S> <C>
VMIG1 29.5%
VMIG2 0.5
MIG1 17.3
P1 2.4
Aaa 9.4
Aa 11.5
Aa1 1.6
Aa3 1.2
A1+ 9.6
A1 11.7
A1- 1.8
A2 0.1
SP1+ 0.8
SP3 0.9
Unrated 1.7
-----
100.0%
=====
</TABLE>
*The amount stated also represents cost for federal income tax purposes.
**Security ineligible under Rule 2a-7. Northern is continuously monitoring the
status of this security and has determined that it is in the best interest of
the unitholders to continue to hold this security.
See accompanying notes to financial statements.
16
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(Unaudited)
INVESTMENT ABBREVIATIONS AND NOTES:
AMBAC--American Municipal Bond Assurance Corp.
BAN --Bond Anticipation Note
BTP --Bankers Trust Partnership
CGIC --Capital Guaranty Insurance Co.
Colld.
--Collateralized
CP --Commercial Paper
FGIC --Financial Guaranty Insurance Corp.
FNMA --Federal National Mortgage Association
FRN --Floating Rate Note
FSAC --Financial Security Assurance Corp.
GO --General Obligation
Gtd. --Guaranteed
IDA --Industrial Development Authority
IDC --Industrial Development Corporation
IDR --Industrial Development Revenue
IRC --Irrevocable Revolving Credit
LOC --Letter of Credit
MBIA --Municipal Bond Insurance Association
MGT
--Morgan Guaranty Trust
ML SG--Merrill Lynch/Societe Generale
P-Floats
--Puttable Floating Rate Security
PCR --Pollution Control Revenue
RAN --Revenue Anticipation Note
RAW --Revenue Anticipation Warrant
TOB
--Tender Option Bond
TRAN --Tax and Revenue Anticipation Note
VRDN --Variable Rate Demand Note
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or, for floating rate securities, the
current reset rate.
Maturity dates represent either the stated date on the security, the next
interest reset date for floating rate securities, or the prerefunded date for
those types of securities.
See accompanying notes to financial statements.
17
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1995
(All amounts in thousands, except net asset value per unit)
(Unaudited)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
amortized cost $2,952,155 $461,630 $549,061 $651,453
Repurchase agreements, at cost -- 210,217 -- --
Receivables:
Interest 2,749 102 101 7,991
Fund units sold 328,207 12,893 3,013 12,993
Securities sold -- -- -- 3,000
Administrator -- 54 26 21
Other assets 68 16 110 226
------------------------------------------------------------------------------
TOTAL ASSETS 3,283,179 684,912 552,311 675,684
------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed 326,275 25,235 9,628 41,533
Distributions 14,307 3,180 2,819 2,176
Accrued expenses and other lia-
bilities:
Advisory fees 616 141 48 132
Administration fees 167 70 64 67
Custodian fees 19 23 -- --
Transfer agent fees 60 8 11 4
Other 304 171 76 79
------------------------------------------------------------------------------
TOTAL LIABILITIES 341,748 28,828 12,646 43,991
------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital 2,943,392 656,537 539,851 631,605
Accumulated net realized gain
(loss)
on investment transactions (1,961) (453) (186) 88
------------------------------------------------------------------------------
NET ASSETS $2,941,431 $656,084 $539,665 $631,693
------------------------------------------------------------------------------
Total units outstanding (no par
value),
unlimited units authorized 2,943,392 656,537 539,851 631,605
------------------------------------------------------------------------------
Net asset value, offering and
redemption price per unit
(net assets/units outstanding) $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME $85,534 $21,467 $15,022 $13,663
------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (net of
voluntary waivers of
$379 for the Government Select
Portfolio) 3,570 924 252 851
Administration fees 946 484 324 329
Custodian fees 138 64 26 36
Transfer agent fees 86 24 19 20
Registration fees 19 14 12 15
Professional fees 97 38 14 30
Trustee fees 30 11 4 8
Other 83 36 17 15
------------------------------------------------------------------------------
TOTAL EXPENSES 4,969 1,595 668 1,304
Less: Expenses reimbursable by
administrator -- (301) (163) (113)
------------------------------------------------------------------------------
Net expenses 4,969 1,294 505 1,191
------------------------------------------------------------------------------
NET INVESTMENT INCOME 80,565 20,173 14,517 12,472
Net realized gain (loss) on in-
vestment transactions (1) 72 29 97
Net unrealized loss on invest-
ments (a) (1,519) (915) (115) --
------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RE-
SULTING FROM OPERATIONS $79,045 $19,330 $14,431 $12,569
------------------------------------------------------------------------------
</TABLE>
(a) These unrealized losses were offset by capital contributions from Northern
Trust Corporation. See note 3 to the financial statements.
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Money Market Portfolios
-------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1995 (Unaudited) and Year Ended November 30,
1994
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Assets Government Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
-------------------------- ------------------------ ------------------------ ------------------------
1995 1994 1995 1994 1995 1994 1995 1994
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET AS-
SETS FROM:
OPERATIONS:
Net investment
income $ 80,565 $ 116,513 $ 20,173 $ 32,931 $ 14,517 $ 15,868 $ 12,472 $ 25,174
Net realized
gain (loss) on
investment
transactions (1) (1,955) 72 (517) 29 (212) 97 27
Net unrealized
loss on
investments (a) (1,519) -- (915) -- (115) -- -- --
----------------------------------------------------------------------------------------------------------------------------
Net increase in
net assets re-
sulting
from operations 79,045 114,558 19,330 32,414 14,431 15,656 12,569 25,201
----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS:
Net investment
income (80,565) (116,513) (20,173) (32,931) (14,517) (15,868) (12,472) (25,174)
Net realized
gain on invest-
ment transac-
tions -- -- -- -- -- -- -- (27)
In excess of net
realized gain on
investment
transactions -- (5) -- (8) -- (3) -- (9)
----------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (80,565) (116,518) (20,173) (32,939) (14,517) (15,871) (12,472) (25,210)
----------------------------------------------------------------------------------------------------------------------------
UNIT TRANSACTIONS
(AT $1.00 PER
UNIT):
Proceeds from
the sale of
units 21,072,065 33,080,284 5,346,922 8,096,549 1,317,081 1,418,799 3,098,020 5,280,315
Cost of units
redeemed (21,022,513) (33,386,732) (5,478,726) (8,373,913) (1,271,163) (1,311,373) (3,319,527) (5,619,135)
----------------------------------------------------------------------------------------------------------------------------
Net increase (de-
crease) in net
assets resulting
from unit
transactions 49,552 (306,448) (131,804) (277,364) 45,918 107,426 (221,507) (338,820)
----------------------------------------------------------------------------------------------------------------------------
CAPITAL CONTRIBU-
TIONS RECEIVED
FROM NORTHERN
TRUST CORPORATION
(a) 1,519 -- 915 -- 115 -- -- --
----------------------------------------------------------------------------------------------------------------------------
Net increase (de-
crease) 49,551 (308,408) (131,732) (277,889) 45,947 107,211 (221,410) (338,829)
Net assets-begin-
ning of period 2,891,880 3,200,288 787,816 1,065,705 493,718 386,507 853,103 1,191,932
----------------------------------------------------------------------------------------------------------------------------
NET ASSETS-END OF
PERIOD $ 2,941,431 $ 2,891,880 $ 656,084 $ 787,816 $ 539,665 $ 493,718 $ 631,693 $ 853,103
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) These unrealized losses were offset by capital contributions from Northern
Trust Corporation. See note 3 to the financial statements.
See accompanying notes to financial statements.
20
<PAGE>
The Benchmark Funds
Money Market Portfolios
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1995 (Unaudited) and Years Ended November 30,
Diversified Assets Portfolio
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991 1990 1989 1988 1987
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.0281 0.0374 0.0300 0.0379 0.0618 0.0801 0.0898 0.0715 0.0630
Net realized
and unrealized
gain (loss) on
investments (0.0005) (0.0006) -- 0.0001 0.0001 -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total income
from investment
operations 0.0276 0.0368 0.0300 0.0380 0.0619 0.0801 0.0898 0.0715 0.0630
-----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS
FROM:
Net investment
income (0.0281) (0.0374) (0.0300) (0.0379) (0.0618) (0.0801) (0.0898) (0.0715) (0.0630)
Net realized
gain on
investments -- -- -- (0.0001) (0.0001) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.0281) (0.0374) (0.0300) (0.0380) (0.0619) (0.0801) (0.0898) (0.0715) (0.0630)
-----------------------------------------------------------------------------------------------------------------------------
CAPITAL CONTRI-
BUTION FROM
NORTHERN
TRUST CORPORA-
TION 0.0005 -- -- -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) -- (0.0006) -- -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------------------------------------------------------------------------
Total return
(a)(b)(c) 5.70% 3.92% 3.00% 3.80% 6.19% 8.01% 8.98% 7.15% 6.30%
Ratio of net
expenses to
average net
assets (b) 0.35% 0.35% 0.34% 0.34% 0.35% 0.35% 0.37% 0.39% 0.41%
Ratio of net
investment
income to
average net
assets (b) 5.64% 3.74% 3.00% 3.79% 6.18% 8.01% 8.98% 7.15% 6.30%
Net assets at
end of period
(in thousands) $2,941,431 $2,891,880 $3,200,288 $2,801,744 $2,784,485 $2,192,756 $1,871,713 $1,528,203 $1,533,941
Ratio
information
assuming no
voluntary waiver
of advisory and
administration
fees and maximum
non-reimbursable
expenses:
Ratio of ex-
penses to aver-
age net assets
(b) 0.35% 0.35% 0.35% 0.35% 0.36% 0.36% 0.37% 0.39% 0.41%
Ratio of net
investment
income to
average net
assets (b) 5.64% 3.74% 2.99% 3.78% 6.17% 8.00% 8.98% 7.15% 6.30%
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1986
-----------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $ 1.00
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.0656
Net realized
and unrealized
gain (loss) on
investments --
-----------------------------------------------------------------------------------------------------------------------------
Total income
from investment
operations 0.0656
-----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS
FROM:
Net investment
income (0.0656)
Net realized
gain on
investments --
-----------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.0656)
-----------------------------------------------------------------------------------------------------------------------------
CAPITAL CONTRI-
BUTION FROM
NORTHERN
TRUST CORPORA-
TION --
-----------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) --
-----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 1.00
-----------------------------------------------------------------------------------------------------------------------------
Total return
(a)(b)(c) 6.56%
Ratio of net
expenses to
average net
assets (b) 0.40%
Ratio of net
investment
income to
average net
assets (b) 6.56%
Net assets at
end of period
(in thousands) $1,080,659
Ratio
information
assuming no
voluntary waiver
of advisory and
administration
fees and maximum
non-reimbursable
expenses:
Ratio of ex-
penses to aver-
age net assets
(b) 0.40%
Ratio of net
investment
income to
average net
assets (b) 6.56%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(b) Annualized.
(c) Annualized total return for the six months ended May 31, 1995 would have
been 5.60% absent the effect of a capital contribution received from
Northern Trust Corporation.
See accompanying notes to financial statements.
21
<PAGE>
The Benchmark Funds
Money Market Portfolios
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1995 (Unaudited) and Years Ended November 30,
Government Portfolio
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.0272 0.0360 0.0291 0.0371 0.0603 0.0788 0.0863 0.0683 0.0615 0.0594
Net realized and
unrealized gain (loss)
on investments (0.0011) (0.0006) -- 0.0020 0.0015 0.0001 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.0261 0.0354 0.0291 0.0391 0.0618 0.0789 0.0863 0.0683 0.0615 0.0594
--------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.0272) (0.0360) (0.0291) (0.0371) (0.0603) (0.0788) (0.0863) (0.0683) (0.0615) (0.0594)
Net realized gain on
investments -- -- -- (0.0020) (0.0015) (0.0001) -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.0272) (0.0360) (0.0291) (0.0391) (0.0618) (0.0789) (0.0863) (0.0683) (0.0615) (0.0594)
--------------------------------------------------------------------------------------------------------------------------------
CAPITAL CONTRIBUTION
FROM NORTHERN TRUST
CORPORATION 0.0012 -- -- -- -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.0001 (0.0006) -- -- -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------------------------------------------------------------------------
Total return (a)(b)(c) 5.54% 3.78% 2.91% 3.91% 6.18% 7.89% 8.63% 6.83% 6.15% 5.94%
Ratio of net expenses
to average net
assets (b) 0.35% 0.34% 0.34% 0.34% 0.35% 0.37% 0.50% 0.54% 0.44% 0.40%
Ratio of net investment
income to average net
assets (b) 5.46% 3.60% 2.92% 3.71% 6.03% 7.88% 8.63% 6.83% 6.15% 5.94%
Net assets at end of
period (in thousands) $656,084 $787,816 $1,065,705 $1,163,905 $895,405 $971,720 $423,517 $335,301 $218,530 $160,542
Ratio information as-
suming no voluntary
waiver of advisory and
administration fees and
maximum non-reimburs-
able expenses:
Ratio of expenses to
average net assets (b) 0.35% 0.35% 0.35% 0.40% 0.40% 0.46% 0.50% 0.55% 0.55% 0.62%
Ratio of net investment
income to average net
assets (b) 5.46% 3.59% 2.91% 3.65% 5.98% 7.79% 8.63% 6.82% 6.04% 5.72%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(b) Annualized.
(c) Annualized total return for the six months ended May 31, 1995 would have
been 5.30% absent the effect of a capital contribution received from
Northern Trust Corporation.
See accompanying notes to financial statements.
22
<PAGE>
The Benchmark Funds
Money Market Portfolios
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1995 (Unaudited) and Years Ended November 30,
Government Select Portfolio
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991 1990 (c)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.0287 0.0383 0.0299 0.0370 0.0578 0.0048
Net realized and
unrealized gain (loss)
on investments (0.0002) (0.0005) 0.0001 0.0001 0.0004 --
-----------------------------------------------------------------------------------
Total income from in-
vestment operations 0.0285 0.0378 0.0300 0.0371 0.0582 0.0048
-----------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.0287) (0.0383) (0.0299) (0.0370) (0.0578) (0.0048)
Net realized gain on
investments -- -- (0.0001) (0.0001) (0.0004) --
-----------------------------------------------------------------------------------
Total distributions to
unitholders (0.0287) (0.0383) (0.0300) (0.0371) (0.0582) (0.0048)
-----------------------------------------------------------------------------------
CAPITAL CONTRIBUTION
FROM NORTHERN TRUST
CORPORATION 0.0002 -- -- -- -- --
-----------------------------------------------------------------------------------
Net increase (decrease) -- (0.0005) -- -- -- --
-----------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------------------------------
Total return (a)(b)(d) 5.80% 3.84% 3.00% 3.71% 5.82% 0.50%
Ratio of net expenses
to average net assets
(b) 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment
income to average net
assets (b) 5.75% 3.83% 2.99% 3.70% 5.78% 7.65%
Net assets at end of
period (in thousands) $539,665 $493,718 $386,507 $264,756 $160,750 $44,215
Ratio information
assuming no voluntary
waiver of advisory and
administration fees and
maximum non-
reimbursable expenses:
Ratio of expenses to
average net assets (b) 0.35% 0.35% 0.35% 0.52% 0.60% 1.33%
Ratio of net investment
income to average net
assets (b) 5.60% 3.68% 2.84% 3.38% 5.38% 6.52%
-----------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(b) Annualized.
(c) Commenced investment operations on November 7, 1990.
(d) Annualized total return for the six months ended May 31, 1995 would have
been 5.75% absent the effect of a capital contribution received from
Northern Trust Corporation.
See accompanying notes to financial statements.
23
<PAGE>
The Benchmark Funds
Money Market Portfolios
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1995 (Unaudited) and Years Ended November 30,
Tax-Exempt Portfolio
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.0183 0.0240 0.0227 0.0295 0.0457 0.0571 0.0603 0.0492 0.0400 0.0430
Net realized gain on
investments 0.0001 -- -- 0.0002 -- -- 0.0001 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.0184 0.0240 0.0227 0.0297 0.0457 0.0571 0.0604 0.0492 0.0400 0.0430
--------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.0183) (0.0240) (0.0227) (0.0295) (0.0457) (0.0571) (0.0603) (0.0492) (0.0400) (0.0430)
Net realized gain on
investments -- -- -- (0.0002) -- -- (0.0001) -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.0183) (0.0240) (0.0227) (0.0297) (0.0457) (0.0571) (0.0604) (0.0492) (0.0400) (0.0430)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.0001 -- -- -- -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------------------------------------------------------------------------
Total return (a)(b) 3.74% 2.62% 2.27% 2.97% 4.57% 5.71% 6.04% 4.92% 4.00% 4.30%
Ratio of net expenses
to average net
assets (b) 0.35% 0.35% 0.34% 0.34% 0.35% 0.36% 0.49% 0.48% 0.45% 0.47%
Ratio of net investment
income to average net
assets (b) 3.67% 2.40% 2.27% 2.95% 4.57% 5.71% 6.03% 4.92% 4.00% 4.30%
Net assets at end of
period (in thousands) $631,693 $853,103 $1,191,932 $1,226,480 $872,405 $752,257 $545,215 $529,680 $410,772 $456,467
Ratio information as-
suming no voluntary
waiver of advisory and
administration fees and
maximum non-reimburs-
able expenses:
Ratio of expenses to
average net assets (b) 0.35% 0.35% 0.35% 0.39% 0.40% 0.43% 0.49% 0.48% 0.46% 0.50%
Ratio of net investment
income to average net
assets (b) 3.67% 2.40% 2.26% 2.90% 4.52% 5.64% 6.03% 4.92% 3.99% 4.27%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(b) Annualized.
See accompanying notes to financial statements.
24
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1995
(Unaudited)
1. ORGANIZATION
The Benchmark Funds (the "Trust") is a Massachusetts business trust registered
under the Investment Company Act of 1940 (as amended) as an open-end management
investment company. The Trust includes sixteen portfolios, each with its own
investment objective. The Northern Trust Company ("Northern") acts as the
Trust's investment adviser, transfer agent, and custodian. Goldman, Sachs & Co.
("Goldman Sachs") acts as the Trust's administrator and distributor. Presented
herein are the financial statements of the money market portfolios.
The Trust includes four diversified money market portfolios: Diversified
Assets Portfolio, Government Portfolio, Government Select Portfolio and Tax-
Exempt Portfolio.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed which are in conformity with those generally accepted in the
investment company industry:
(a) Investment Valuation
Investments are valued using the amortized cost method. Under this method,
investments purchased at a discount or premium are valued by amortizing the
difference between the original purchase price and maturity value of the issue
over the period to maturity.
As of May 31, 1995, amortized cost of investments approximates market value.
(b) Repurchase Agreements
During the term of a repurchase agreement, the market value of the underlying
collateral, including accrued interest, is required to exceed the market value
of the repurchase agreement. The underlying collateral for all repurchase
agreements is held in a customer-only account of Northern, as custodian for the
Trust, at the Federal Reserve Bank of Chicago.
(c) Interest Income
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums.
(d) Federal Taxes
It is each portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
each year substantially all of its taxable income and tax-exempt income to its
unitholders. Therefore, no provision is made for federal taxes.
At November 30, 1994, the Trust's most recent tax year end, there were capital
loss carryforwards for U.S. federal tax purposes of approximately $1,955,000,
$569,000 and $218,000 for the Diversified Assets, Government and Government
Select Portfolios, respectively. These amounts are available to be carried
forward to offset future capital gains to the extent permitted by applicable
laws or regulations. These capital loss carryforwards expire in 2002.
(e) Expenses
Expenses incurred which do not specifically relate to an individual portfolio
are allocated among the portfolios based on each portfolio's relative average
net assets for the year.
(f) Distributions
Each Portfolio's net investment income is declared daily as a dividend to
unitholders of record as of 3:00 p.m., Chicago time. Prior to March 1, 1994,
short-term capital gains, if any, were declared daily. Commencing March 1,
1994, net realized short-term capital gains, if any, are declared and
distributed at least annually.
Distributions of net investment income with respect to a calendar month
(including with respect to units redeemed at any time during the month) are
made as soon as practicable following the end of the month. Distributions are
made by the portfolios to Northern in cash. Northern has undertaken to credit
or arrange for the crediting of such distributions to each unitholder's account
with Northern, its affiliates or its correspondents.
3. ADVISORY, TRANSFER AGENCY, CUSTODIAN AND OTHER AGREEMENTS
As compensation for the services rendered as investment adviser, including the
assumption by
25
<PAGE>
The Benchmark Funds
Money Market Portfolios
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1995
(Unaudited)
Northern of the expenses related thereto, Northern is entitled to a fee,
computed daily and payable monthly, at an annual rate of .25% of each
portfolio's average daily net assets.
Until further notice, Northern has voluntarily agreed to waive .15% of its
advisory fee for the Government Select Portfolio, reducing such fee to .10% per
annum. The effect of this waiver by Northern for the six months ended May 31,
1995 was to reduce advisory fees by approximately $379,000.
As compensation for the services rendered as custodian and transfer agent,
including the assumption by Northern of the expenses related thereto, Northern
receives compensation based on a pre-determined schedule of charges approved by
the Board.
The Trust and Northern Trust Corporation (the "Corporation") entered into an
agreement (the "Put Agreement") dated May 19, 1994 which provided the Trust the
right to require the Corporation to purchase, and the Corporation the right to
require the Trust to sell, certain Federal Home Loan and Federal Farm Credit
Banks securities held by the Diversified Assets, Government and Government
Select Portfolios on or before June 19, 1995 (the "final purchase date"). The
purchase price under the Put Agreement was the greater of the amortized cost
value or market value on the date of purchase. The value of these securities,
including the value of the Put Agreement, approximated amortized cost. The
Portfolios recorded unrealized losses and capital contributions, to offset such
losses, to the extent the purchase price exceeded market value of the
securities. These losses and offsetting capital contributions are included in
paid-in capital in the accompanying Statements of Assets and Liabilities. As a
result, there was no impact on net assets of the Portfolios.
On May 25, 1995, pursuant to the Put Agreement, the Corporation notified the
Trust of its intent to exercise its right to require the Trust to sell these
securities, on the final purchase date. On June 19, 1995, the Corporation
purchased these securities at amortized cost, which exceeded market value by
approximately $1,519,000, $915,000 and $115,000 for the Diversified Assets,
Government and Government Select Portfolios, respectively.
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
As compensation for the services rendered as administrator, and the assumption
by Goldman Sachs of expenses related thereto, Goldman Sachs is entitled to
receive from each portfolio a fee, computed daily and payable monthly, at an
annual rate of .25% of the first $100 million, .15% of the next $200 million,
.075% of the next $450 million and .05% of any excess over $750 million of the
average daily net assets of each portfolio. Goldman Sachs receives no
compensation under the Distribution Agreement.
Goldman Sachs has voluntarily agreed to waive a portion of its administration
fees in the event that overall administration fees earned during the prior
fiscal year exceeded certain specified levels. For the six months ended May 31,
1995, there was no reduction in administration fees due to this waiver.
Furthermore, Goldman Sachs has agreed to reimburse the portfolios for certain
expenses in the event that such expenses, as defined, exceed, on an annualized
basis, .10% of each portfolio's average daily net assets. The effect of these
reimbursements by Goldman Sachs for the six months ended May 31, 1995 was to
reduce the expenses of the Government, Government Select and Tax-Exempt
Portfolios by approximately $301,000, $163,000 and $113,000, respectively.
26
<PAGE>
THE BENCHMARK FUNDS
Investment Adviser, Transfer Agent andCustodian
The Northern Trust Company
50 S. LaSalle Street
Chicago, IL 60675
Administrator and Distributor
Goldman, Sachs & Co.
4900 Sears Tower
Chicago, IL 60606
Trustees
William H. Springer, Chairman
Edward J. Condon, Jr.
John W. English
James J. Gavin, Jr.
William B. Jordan
Frederick T. Kelsey
Richard P. Strubel
Officers
Marcia L. Beck, President
Paul W. Klug, Jr. Vice President
John W. Mosior, Vice President
Nancy L. Mucker, Vice President
Pauline Taylor, Vice President
Scott M. Gilman, Treasurer
Michael J. Richman, Secretary
Howard B. Surloff, Assistant Secretary
This Semi-Annual Report is
authorized for distribution to
prospective investors only
when preceded or accompanied
by a Prospectus which contains
facts concerning the
objectives and policies,
management expenses and other
information.
The
Benchmark
Funds
Money
Market
Portfolios
Semi-Annual Report
May 31, 1995
