[LOGO]
Tax Free
Short/Intermediate
Fixed Income Fund
SEMI-ANNUAL REPORT
December 31, 1995
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
(unaudited)
<TABLE>
<CAPTION>
Principal Interest
Amount Maturity Rate Value
- ---------- -------- ------- -----------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS & NOTES (99.2%)
ESCROWED TO MATURITY (a) (5.5%)
$ 15,000 Atlanta, Georgia, Water & Sewer Revenue .................... 1/1/96 5.400% $ 15,001
90,000 Baltimore, Maryland, General Obligation .................... 4/1/96 7.000 90,730
100,000 Berks County, Pennsylvania, Industrial
Development Authority ..................................... 4/1/98 7.250 106,672
200,000 Chicago, Illinois, Public Building Community Revenue ....... 1/1/97 7.000 205,774
150,000 Chicago, Illinois, Public Building Community Revenue ....... 1/1/97 7.450 155,203
50,000 Chicago, Illinois, Public Building Community Revenue ....... 1/1/98 7.500 53,318
150,000 Chicago, Illinois, Wastewater Transmission Revenue ......... 11/15/98 6.700 160,218
85,000 Clark County, Nevada, General Obligation ................... 1/1/96 9.000 85,000
10,000 DeKalb County, Georgia, School District .................... 1/1/96 5.000 10,000
15,000 Denver, Colorado, City & County
Single Family Mortgage .................................... 8/1/96 6.700 15,262
165,000 Fairfield, Ohio, Economic Development ...................... 12/1/98 10.500 193,167
25,000 Grapevine and Colleyville, Indiana, School District ........ 5/15/96 9.100 25,480
50,000 Gregg County, Texas, Hospital .............................. 8/15/96 6.125 50,833
30,000 Illinois Educational Facility Authority Revenue ............ 12/1/97 7.100 31,719
100,000 Johnson County, Kansas ..................................... 9/1/96 8.900 103,342
740,000 Le Claire, Iowa, Electric Revenue .......................... 9/1/96 4.125 743,434
25,000 Lower Colorado River Authority Revenue, Texas .............. 1/1/96 6.900 25,000
200,000 Metropolitan Government, Nashville, Tennessee .............. 7/1/98 6.800 214,184
100,000 Moore, Oklahoma, Public Works Authority
Revenue Bonds ............................................. 7/1/97 8.600 106,746
10,000 New York State Housing Finance Agency ...................... 5/1/96 6.200 10,087
25,000 New York State Housing Finance Agency ...................... 5/1/96 7.750 25,338
40,000 North Slope, Alaska ........................................ 2/10/96 13.700 40,390
100,000 Northwest, Texas, Independent School District .............. 1/15/96 13.500 100,290
-----------
$ 2,567,188
-----------
GENERAL OBLIGATION (6.6%)
$ 25,000 Austin, Texas, Independent School District ................. 8/1/96 6.500% $ 25,431
500,000 California State Revenue Anticipation Notes ................ 4/25/96 5.750 503,315
175,000 Delaware State ............................................. 5/1/98 6.800 185,563
30,000 Houston, Texas ............................................. 2/1/96 6.800 30,070
50,000 Illinois State ............................................. 5/1/96 5.500 50,320
500,000 Illinois State ............................................. 11/1/96 11.500 532,255
500,000 Maryland State Health Facility, 2nd Series ................. 7/15/99 6.400 537,600
35,000 Massachusetts State ........................................ 2/1/96 7.000 35,103
45,000 Massachusetts State Refunding Bonds, Series A .............. 8/1/96 5.700 45,544
585,000 New Jersey State ........................................... 9/15/99 6.250 626,038
25,000 Pennsylvania State ......................................... 6/1/96 6.500 25,311
75,000 Pennsylvania State ......................................... 11/1/96 7.000 76,978
100,000 Washington State ........................................... 4/1/97 7.000 100,786
</TABLE>
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995 (continued)
(unaudited)
<TABLE>
<CAPTION>
Principal Interest
Amount Maturity Rate Value
- ---------- -------- ------- -----------
<C> <S> <C> <C> <C>
GENERAL OBLIGATION (continued)
$ 85,000 Washoe County, Nevada ...................................... 9/1/96 8.000% $ 87,370
110,000 Washoe County, Nevada ...................................... 9/1/97 7.200 115,721
85,000 Wisconsin State, Series A .................................. 5/1/96 6.500 85,841
-----------
$ 3,063,246
-----------
PRE-REFUNDED (a) (78.0%)
$ 105,000 Anchorage, Alaska .......................................... 5/1/96 7.750% $ 108,459
65,000 Anchorage, Alaska, Electric Utility Revenue ................ 6/1/96 7.625 67,327
125,000 Aurora, Illinois ........................................... 1/1/99 7.000 134,925
300,000 Austin, Texas, Utility System Revenue ...................... 9/1/99 7.000 328,188
495,000 Austin, Texas, Water, Sewer & Electric ..................... 5/15/97 14.250 561,627
120,000 Bexar County, Texas ........................................ 6/15/97 6.700 124,680
130,000 Birmingham-East End, Alabama, Medical ...................... 7/1/96 11.500 134,893
550,000 Boston, Massachusetts, Series A ............................ 2/1/00 7.375 622,930
35,000 Buncombe County, North Carolina ............................ 2/1/98 7.100 37,783
35,000 Charleston County, South Carolina .......................... 10/1/97 6.750 37,316
50,000 Chicago, Illinois, Park District ........................... 1/1/96 10.250 50,000
60,000 Cleveland, Ohio, Waterworks Revenue ........................ 1/1/96 9.250 61,200
50,000 Cleveland, Ohio, Waterworks Revenue ........................ 1/1/97 7.625 52,807
15,000 Dade County, Florida, Public Facility Revenue .............. 6/1/98 7.875 16,612
25,000 Dallas County, Texas, Utility & Reclamation ................ 8/15/96 7.750 25,623
20,000 Delaware Transportation Authority System Revenue ........... 7/1/98 7.500 21,916
35,000 District of Columbia, General Obligation ................... 6/1/96 8.000 36,262
180,000 District of Columbia, General Obligation ................... 6/1/97 7.750 191,441
80,000 District of Columbia, General Obligation ................... 6/1/97 7.750 85,085
250,000 District of Columbia, General Obligation ................... 12/1/98 7.750 277,745
200,000 Downtown Savannah, Georgia, Authority ...................... 1/1/99 6.800 218,600
45,000 Duluth, Minnesota .......................................... 3/1/98 10.500 50,886
200,000 East Stroudsburg, Pennsylvania, Area School District ....... 12/1/97 7.000 212,952
320,000 Farmington, New Mexico, Power Revenue Bonds ................ 7/1/96 14.000 335,827
1,000,000 Florence County, South Carolina, Public Facility ........... 3/1/00 7.600 1,136,820
100,000 Florida State Municipal Power Agency Revenue ............... 10/1/96 7.125 104,534
60,000 Fort Bend County, Texas, Levee District Number 2 ........... 2/15/96 14.500 60,721
15,000 Fort Bend County, Texas, Municipal Utility ................. 10/1/97 12.000 16,970
1,050,000 Fort Worth, Texas .......................................... 3/1/00 6.500 1,137,024
60,000 Fulton County, Georgia, School District .................... 5/1/97 7.400 64,432
50,000 Fulton County, Georgia, Water & Sewer Revenue .............. 1/1/98 8.250 54,953
75,000 Galveston County, Texas, Water Authority ................... 7/10/96 13.000 78,515
110,000 Georgia Municipal Electric Authority Power Revenue ......... 1/1/98 8.000 120,375
400,000 Goshen, Indiana, Middle School ............................. 12/30/98 7.800 447,716
50,000 Grand Prairie, Texas ....................................... 8/15/96 8.000 51,289
500,000 Grand Strand, South Carolina, Water & Sewer ................ 6/1/99 7.000 544,830
30,000 Greater New Orleans Expressway ............................. 11/1/96 7.800 31,861
</TABLE>
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995 (continued)
(unaudited)
<TABLE>
<CAPTION>
Principal Interest
Amount Maturity Rate Value
- ---------- -------- ------- -----------
<C> <S> <C> <C> <C>
PRE-REFUNDED (continued)
$ 295,000 Greater Orlando, Florida, Aviation ......................... 10/1/98 8.375% $ 331,406
190,000 Gwinnett County, Georgia ................................... 1/1/97 7.000 199,521
125,000 Gwinnett County, Georgia, Water & Sewer Revenue ............ 8/1/98 6.700 135,272
125,000 Harris County, Texas ....................................... 11/1/96 9.000 130,323
65,000 Harris County, Texas ....................................... 2/15/97 7.400 69,357
400,000 Harris County, Texas ....................................... 2/1/98 10.375 449,416
100,000 Harris County, Texas ....................................... 2/15/98 8.125 110,925
45,000 Harris County, Texas ....................................... 2/15/98 8.125 49,916
80,000 Harris County, Texas, Municipal Utility District ........... 4/1/96 8.500 80,914
125,000 Hawaii State ............................................... 6/1/98 7.000 135,376
1,745,000 Honolulu, Hawaii, City & County ............................ 6/1/00 7.250 1,971,588
115,000 Houston, Texas, Water & Sewer Systems ...................... 12/1/96 7.125 120,758
165,000 Houston, Texas, Water & Sewer Systems ...................... 12/1/96 8.200 174,755
300,000 Houston, Texas, Water & Sewer Systems ...................... 12/1/97 8.125 328,065
65,000 Hudson County, New Jersey, Correctional Facility ........... 12/1/98 7.600 72,424
75,000 Illinois Health Facility Authority ......................... 5/1/97 9.625 81,858
35,000 Illinois Health Facility Authority ......................... 9/1/97 7.850 37,853
200,000 Illinois State ............................................. 6/1/98 7.750 220,194
25,000 Illinois State Sales Tax Revenue ........................... 6/15/97 8.100 26,917
500,000 Illinois State Sales Tax Revenue ........................... 6/15/99 6.800 549,965
35,000 Indiana Municipal Power Agency, Series A ................... 1/1/96 9.200 36,050
60,000 Indiana Municipal Power Agency, Series A ................... 1/1/96 9.200 61,800
75,000 Indianapolis, Indiana, Public Improvement .................. 2/1/98 8.500 82,637
100,000 Intermountain Power Agency, Utah ........................... 7/1/96 7.750 103,969
85,000 Jefferson, Wisconsin, Sewer System Waterworks .............. 7/1/96 9.300 88,549
10,000 Kaukauna, Wisconsin, Electric System Revenue Bonds ......... 1/1/96 8.500 10,300
1,000,000 Kentucky State Turnpike Authority .......................... 5/15/00 7.250 1,130,760
280,000 Lake County, Illinois, Forest Preservation District ........ 2/1/98 6.850 300,594
155,000 Lake County, Indiana, Hospital Authority
Sisters of Mercy Health Corp. .............................. 7/1/96 7.200 160,740
50,000 Lower Colorado River Authority Revenue, Texas .............. 1/1/96 7.000 50,000
30,000 Lower Colorado River Authority Revenue, Texas .............. 1/1/96 7.000 30,000
45,000 Lower Colorado River Authority Revenue, Texas .............. 1/1/96 8.375 45,900
65,000 Lower Colorado River Authority Revenue, Texas .............. 1/2/96 6.500 65,000
100,000 Luzerne County, Pennsylvania ............................... 9/15/97 7.150 105,279
385,000 Maine Municipal Bond Bank .................................. 11/1/98 7.400 427,423
200,000 Maine Municipal Bond Bank .................................. 11/1/98 7.850 224,860
50,000 Massachusetts Bay Transportation Authority ................. 3/1/98 7.500 54,553
20,000 Massachusetts State Health & Education Facility ............ 7/1/96 8.625 20,878
1,150,000 Massachusetts State Health & Education Facility ............ 7/1/00 8.000 1,343,683
500,000 Massachusetts State Individual Finance Revenue ............. 9/1/99 7.250 560,675
50,000 Metropolitan Fair & Exposition Authority, Illinois ......... 6/1/96 8.000 51,855
</TABLE>
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995 (continued)
(unaudited)
<TABLE>
<CAPTION>
Principal Interest
Amount Maturity Rate Value
- ---------- -------- ------- -----------
<C> <S> <C> <C> <C>
PRE-REFUNDED (continued)
$ 100,000 Michigan City, Indiana, Area Schools ....................... 6/15/98 7.875% $ 110,512
100,000 Michigan State Hospital Finance Authority .................. 8/15/98 8.000 111,365
290,000 Mississippi Hospital Equipment Facility Authority .......... 5/15/97 8.250 312,078
40,000 Mobile, Alabama, Water & Sewer Revenue ..................... 1/1/97 7.875 42,302
1,000,000 Montgomery County, Maryland ................................ 11/1/99 6.800 1,109,850
1,000,000 Myrtle Beach, South Carolina, Water & Sewer Revenue ........ 3/1/00 7.000 1,122,560
25,000 Naperville, Illinois ....................................... 6/1/97 7.000 26,033
100,000 Nassau County, New York .................................... 8/15/97 7.400 108,401
100,000 Nevada State ............................................... 8/1/96 7.000 103,843
15,000 Nevada State ............................................... 10/1/97 8.000 16,278
35,000 New York State Dorm Authority Revenue ...................... 7/1/97 8.125 37,810
15,000 North Broward, Florida, Hospital District .................. 1/1/96 7.500 15,450
35,000 Ocean County, New Jersey, Utility Authority,
Wastewater Revenue Bonds .................................. 1/1/96 7.000 35,000
2,000,000 Ohio State Building Authority,
Correctional Facility, Series A ........................... 8/1/99 7.350 2,245,040
45,000 Ohio State Water Development Authority
Revenue Bonds, Series A ................................... 6/1/96 7.750 47,087
50,000 Ohio State Water Development Authority
Revenue Bonds, Series I ................................... 6/1/96 7.750 52,318
10,000 Ohio State Water Development Authority
Revenue Bonds, Series I ................................... 6/1/97 7.750 10,719
15,000 Ohio State Water Development Authority
Revenue Bonds, Series I ................................... 6/1/97 7.750 16,078
30,000 Oregon State General Obligation ............................ 9/1/96 12.500 32,294
115,000 Park Ten Municipal Utility District, Texas ................. 3/1/96 9.250 116,002
25,000 Petersburg, Virginia, I.D.A. Hospital Corp. ................ 11/1/96 7.300 25,733
35,000 Phoenix, Arizona, General Obligation ....................... 7/1/97 7.375 37,407
115,000 Piedmont Municipal Power Agency Revenue Bonds .............. 1/1/98 7.600 125,090
150,000 Plano, Texas ............................................... 9/1/97 7.300 158,101
1,000,000 Richland County, South Carolina ............................ 3/1/00 6.750 1,111,090
145,000 Richmond, Virginia, Public Utility Revenue ................. 1/15/98 8.000 158,876
500,000 Rutgers State University, New Jersey ....................... 5/1/98 7.800 550,860
10,000 St. Petersburg, Florida, Utility Tax ....................... 6/1/96 6.800 10,329
20,000 Salt River, Arizona, Electrical Systems Revenue ............ 1/1/97 7.000 20,617
40,000 Salt River, Arizona, Electrical Systems Revenue ............ 1/1/98 8.250 43,223
115,000 San Antonio, Texas, Electric & Gas Revenue ................. 2/1/98 8.000 126,064
70,000 San Antonio, Texas, General Obligation ..................... 5/1/96 7.000 71,792
60,000 San Antonio, Texas, Sewer Revenue .......................... 5/1/97 7.900 63,920
50,000 San Antonio, Texas, Sewer Revenue .......................... 5/1/97 7.900 53,266
40,000 Spooner, Wisconsin, School District ........................ 4/1/96 9.500 40,547
1,000,000 Sullivan County, Tennessee, Health,
Education & Housing Facility .............................. 2/15/00 7.200 1,129,050
</TABLE>
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995 (continued)
(unaudited)
<TABLE>
<CAPTION>
Principal Interest
Amount Maturity Rate Value
- ---------- -------- ------- -----------
<C> <S> <C> <C> <C>
PRE-REFUNDED (continued)
$ 115,000 Swarthmore Boro Authority, Pennsylvania,
College Revenue ........................................... 9/15/98 7.375% $ 126,215
125,000 Tarrant County, Texas, Health Facility ..................... 10/1/96 10.875 131,439
30,000 Texarkana, Arkansas, Waterworks Facility Revenue ........... 12/1/97 11.250 34,095
790,000 Texas Municipal Power Agency Revenue Bonds ................. 3/1/97 14.625 883,963
155,000 Texas Municipal Power Agency Revenue Bonds ................. 9/1/97 6.875 165,231
100,000 Texas State ................................................ 10/1/98 6.500 106,022
50,000 Triborough Bridge & Tunnel Authority Revenue Bonds ......... 1/1/96 8.250 51,000
180,000 Trinity River Authority, Texas ............................. 8/1/96 7.700 184,154
1,000,000 Tucson, Arizona, Street & Highway User Revenue ............. 7/1/00 6.875 1,114,580
1,000,000 Tucson, Arizona, Street & Highway User Revenue ............. 7/1/00 6.875 1,114,580
25,000 Turlock, California, Irrigation District Refunding Revenue . 1/1/96 7.750 25,500
55,000 Uintah County, Utah, Pollution Control ..................... 10/15/96 9.875 57,583
1,040,000 Uintah County, Utah, Pollution Control ..................... 10/15/96 10.125 1,090,409
80,000 University of Arizona, Revenue Bonds ....................... 6/1/96 7.300 82,760
1,000,000 University of Arizona, Revenue Bonds ....................... 6/1/00 6.900 1,122,070
210,000 University of Virginia, Hospital Revenue Bonds ............. 6/1/98 7.150 228,852
25,000 Virginia State Public School Authority ..................... 1/1/96 7.500 25,500
50,000 Virginia State Public School Authority ..................... 1/1/96 7.500 51,000
100,000 Virginia State Public School Authority ..................... 1/1/97 6.300 104,336
325,000 Virginia State Public School Authority ..................... 1/1/98 7.000 349,817
400,000 Virginia State Transportation Board Revenue ................ 5/15/98 6.800 431,808
125,000 Washington State ........................................... 9/1/96 10.000 130,062
150,000 Washington State Public Power Supply ....................... 7/1/96 14.500 162,200
90,000 Washington State Public Power Supply ....................... 7/1/96 15.000 97,537
500,000 Washington State Public Power Supply ....................... 7/1/96 15.000 541,870
35,000 Washington State Public Power Supply ....................... 7/1/97 14.500 40,242
15,000 Washington State Refunding, Series 86 D .................... 9/1/96 8.000 15,419
40,000 West Virginia State Board of Regents ....................... 4/1/96 7.750 41,184
50,000 West Virginia State Hospital Finance Authority ............. 6/1/96 7.125 51,690
5,000 West Virginia State Hospital Finance Authority ............. 7/1/97 6.850 5,212
125,000 West Virginia State Water Development Authority ............ 11/1/96 10.000 131,275
70,000 Western Minnesota Municipal Power Agency, Series A ......... 1/1/96 8.125 71,400
100,000 Woodward, Oklahoma, Municipal Authority Sales .............. 11/1/97 8.000 107,894
-----------
$36,151,316
-----------
SALES TAX (0.6%)
$ 250,000 Illinois State Sales Tax Revenue ........................... 6/15/97 6.100% $ 257,445
-----------
TRANSPORTATION (3.2%)
$ 165,000 Delaware Transportation Authority System Revenue ........... 7/1/97 7.100% $ 172,970
550,000 Illinois State Toll Highway ................................ 1/1/99 4.400 552,596
750,000 Illinois State Toll Highway ................................ 1/1/99 4.400 753,960
10,000 Port Authority of New York & New Jersey .................... 7/15/97 5.000 10,190
-----------
$ 1,489,716
-----------
</TABLE>
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995 (continued)
(unaudited)
<TABLE>
<CAPTION>
Principal Interest
Amount Maturity Rate Value
- ---------- -------- ------- -----------
<C> <S> <C> <C> <C>
UTILITIES (5.1%)
$1,000,000 Washington State Public Power Supply, Project #1 ........... 7/1/96 4.200% $ 1,000,130
350,000 Washington State Public Power Supply, Project #2 ........... 7/1/96 5.800 352,828
1,000,000 Washington State Public Power Supply, Project #3 ........... 7/1/96 6.900 1,013,380
-----------
$ 2,366,338
-----------
WATER/SEWER (0.2%)
$ 100,000 Connecticut State Clean Water .............................. 10/1/97 10.000% $ 110,270
-----------
TOTAL INVESTMENTS (identified cost $45,633,830) (b) .................................. 99.2% $46,005,519
OTHER ASSETS IN EXCESS OF LIABILITIES ................................................. 0.8 364,895
----- -----------
NET ASSETS ............................................................................ 100.0% $46,370,414
===== ===========
</TABLE>
- ----------
(a) General obligation or revenue bonds that have been fully secured or
collateralized by an escrow fund consisting of U.S. Government obligations
that can adequately meet interest and principal payments. For pre-refunded
obligations, the stated maturity date represents the date of redemption
which, pursuant to the terms of the escrow agreement, has been accelerated
from the originally stated maturity date.
(b) The aggregate cost for federal income tax purposes is $45,633,830, the
aggregate gross unrealized appreciation is $401,594, and the aggregate
gross unrealized depreciation is $29,905 resulting in net unrealized
appreciation of $371,689.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
(unaudited)
ASSETS:
Investments in securities, at value
(identified cost $45,633,830) (Note 1) ................ $ 46,005,519
Interest receivable .................................... 1,032,595
Deferred organization expenses (Note 1) ................ 12,277
------------
Total Assets .................................... 47,050,391
------------
LIABILITIES:
Payable to custodian ................................... 403,378
Payables for:
Fund shares repurchased .............................. 250,000
Expense payment fee (Note 2) ......................... 20,689
Administrative fee (Note 2) .......................... 5,910
------------
Total Liabilities ............................... 679,977
------------
NET ASSETS ................................................. $ 46,370,414
============
Net Assets Consist of:
Paid-in capital ........................................ $ 46,306,015
Accumulated net realized loss on investments ........... (307,290)
Net unrealized appreciation on investments ............. 371,689
------------
Net Assets ................................................. $ 46,370,414
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($46,370,414 / 4,481,139 shares) ..................... $10.35
======
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENT OF OPERATIONS
For the six months ended December 31, 1995
(unaudited)
INVESTMENT INCOME:
Income:
Interest .................................................. $1,050,455
----------
Expenses:
Expense payment fee (Note 2) .............................. 131,631
Administrative fee (Note 2) ............................... 36,978
Amortization of organization expenses (Note 1) ............ 3,956
----------
Total Expenses ....................................... 172,565
----------
Net Investment Income ................................ 877,890
----------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain on investments ............................ 175,896
Net change in unrealized appreciation on investments ........ 165,468
----------
Net Realized and Unrealized Gain ..................... 341,364
----------
Net Increase in Net Assets Resulting from Operations ........ $1,219,254
==========
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
six months ended For the
December 31, 1995 year ended
(unaudited) June 30, 1995
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income .................................... $ 877,890 $ 2,171,753
Net realized gain (loss) on investments .................. 175,896 (401,310)
Net change in unrealized appreciation/depreciation
on investments ......................................... 165,468 1,220,494
------------ ------------
Net increase in net assets resulting from operations ... 1,219,254 2,990,937
------------ ------------
Dividends and distributions declared from
net investment income .................................... (877,890) (2,171,753)
------------ ------------
Shares of beneficial interest transactions (Note 4):
Net proceeds from sales of shares of beneficial interest . 7,162,753 21,229,621
Net asset value of shares of beneficial interest issued to
shareholders in reinvestment of dividends .............. 235,658 608,425
Net cost of shares of beneficial interest repurchased .... (13,197,351) (38,082,365)
------------ ------------
Net decrease in net assets resulting from
shares of beneficial interest transactions ........... (5,798,940) (16,244,319)
------------ ------------
Total decrease in net assets ....................... (5,457,576) (15,425,135)
NET ASSETS:
Beginning of period ........................................ 51,827,990 67,253,125
------------ ------------
End of period .............................................. $ 46,370,414 $ 51,827,990
============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share
outstanding throughout each period
<TABLE>
<CAPTION>
For the period
For the July 23, 1992
six months ended For the years ended June 30, (commencement of
December 31, 1995 ----------------------------- operations) to
(unaudited) 1995 1994 June 30, 1993
---------------- ------------ ----------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period... $10.28 $10.11 $10.29 $10.00
Income from investment operations:
Net investment income............... 0.02 0.37 0.34 0.32
Net realized and unrealized
gain (loss) on investments........ 0.07 0.17 (0.18) 0.29
Less dividends and distributions:
Dividends to shareholders from
net investment income............. (0.02) (0.37) (0.34) (0.32)
Distributions to shareholders
from net realized gains
on investments.................... -- -- (0.00)* --
------ ------ ------ ------
Net asset value, end of period......... $10.35 $10.28 $10.11 $10.29
====== ====== ====== ======
Cumulative investment return***........ 2.60% 5.42% 1.59% 6.16%
Ratios/Supplemental Data:
Net assets, end of period
(000's omitted)................... $46,370 $51,828 $67,253 $33,202
Ratio of expenses to average
net assets (Note 2)***............ 0.70%** 0.70% 0.70% 0.70%**
Ratio of net investment income to
average net assets................ 3.56%** 3.67% 3.32% 3.42%**
Portfolio turnover rate............. 35.37% 38.70% 26.75% 12.68%
</TABLE>
- ----------
* Distributions to shareholders from net realized gains were less than $0.01
per share.
** Annualized
*** Had the expense payment agreement not been in place, the ratio of expenses
to average net assets for the six months ended December 31, 1995, the years
ended June 30, 1995 and 1994, and for the period ended June 30, 1993 would
have been 0.91%, 0.99%, 1.01% and 1.25%, respectively. For the same
periods, the cumulative return of the Fund would have been 2.39%, 5.13%,
1.28% and 5.61%, respectively. Furthermore, the ratio of expenses to
average net assets for the six months ended December 31, 1995 reflects fees
reduced in connection with specific agreements. Had these agreements not
been in place, this ratio would have been 1.02%
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Accounting Policies. The 59 Wall Street Tax Free
Short/Intermediate Fixed Income Fund (the "Fund") is a separate, diversified
series of The 59 Wall Street Trust (the "Trust") which is registered under the
Investment Company Act of 1940, as amended. The Trust is an open-end management
investment company organized as a Massachusetts business trust on June 7, 1983.
The Fund commenced operations on July 23, 1992. The Declaration of Trust permits
the Trustees to create an unlimited number of series, each of which issues a
separate class of shares. The Trustees have authorized the issuance of an
unlimited number of shares of the Fund. At December 31, 1995, there were three
series of the Trust.
The following is a summary of significant accounting policies:
A. Valuation of Investments. Bonds and other fixed income securities
(other than short-term obligations but including listed issues) are valued
on the basis of valuations furnished by a pricing service, use of which has
been approved by the Board of Trustees. In making such valuations, the
pricing service utilizes both dealer-supplied valuations and electronic
data processing techniques which take into account appropriate factors such
as institutional-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, trading characteristics and
other market data, without exclusive reliance upon quoted prices or
exchange or over-the-counter prices, since such valuations are believed to
reflect more accurately the fair value of such securities.
Securities or other assets for which market quotations are not readily
available are valued at fair value in accordance with procedures
established by and under the general supervision and responsibility of the
Trustees. Short-term investments which mature in 60 days or less are valued
at amortized cost if their original maturity was 60 days or less, or by
amortizing their value on the 61st day prior to maturity, if their original
maturity when acquired for the Fund was more than 60 days, unless this is
determined not to represent fair value by the Trustees.
B. Accounting for Investments. Investment transactions are accounted
for on the trade date. Realized gains and losses, if any, from investment
transactions are determined on the basis of identified cost. Interest
income is accrued daily and consists of interest accrued, discount earned
(including both original issue and market discount) and premium
amortization on the investments of the Fund.
C. Deferred Organization Expenses. Expenses incurred by the Fund in
connection with its organization and initial public offering of its shares
are being amortized by the Fund on a straight-line basis over a five-year
period.
D. Federal Income Taxes. Each series of the Trust is treated as a
separate entity for Federal income tax purposes. It is the Fund's policy to
comply with the requirements of the Internal Revenue Code (the "Code")
applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders. Accordingly, no Federal income tax
provision is required.
E. Dividends and Distributions to Shareholders. Dividends from net
investment income are declared daily and paid monthly to shareholders.
Distributions from net capital gains, if any, are paid annually and are
recorded on the ex-dividend date. Distributions paid by the Fund from net
interest received on tax-exempt bonds are not includable by shareholders as
gross income for Federal income tax purposes because the Fund intends to
meet certain requirements of the Code applicable to regulated investment
companies which will enable the Fund to pay tax-exempt interest dividends.
2. Transactions with Affiliates.
Investment Advisory Agreement. The Trust has an investment advisory
agreement with Brown Brothers Harriman & Co. (the "Adviser") for which the
Adviser receives a fee calculated daily and paid monthly at an annual rate
equivalent to 0.35% of the Fund's average daily net assets.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
Administrative Fee. The Trust has an administrative agreement with Brown
Brothers Harriman & Co. (the "Administrator") for which it pays the
Administrator a fee calculated daily and paid monthly at an annual rate
equivalent to 0.15% of the Fund's average daily net assets. The Administrator
has a subadministration agreement with 59 Wall Street Administrators, Inc. for
which 59 Wall Street Administrators, Inc. receives such compensation as is from
time to time agreed upon, but not in excess of the amount paid to the
Administrator. For the six months ended December 31, 1995, the Fund incurred
$36,978 for administrative services.
Eligible Institution Agreement. The Trust has an eligible institution
agreement with Brown Brothers Harriman & Co. for which Brown Brothers Harriman &
Co. receives a fee calculated monthly at an annual rate of 0.25% of the Fund's
average daily net assets.
Expense Payment Fee. 59 Wall Street Administrators, Inc. pays certain
expenses of the Fund and receives a fee from the Fund, computed and paid
monthly, such that after such fee the aggregate expenses will not exceed 0.70%
of the Fund's average daily net assets. For the six months ended December 31,
1995, 59 Wall Street Administrators, Inc. incurred approximately $183,500 in
expenses on behalf of the Fund, including investment advisory fees of $86,282
and eligible institution fees of $61,630. Custody fees for the Fund paid
pursuant to the expense payment agreement were reduced by $27,978 as a result of
an expense offset arrangement with the Fund's custodian. The expense payment
agreement will terminate on July 1, 1997.
3. Investment Transactions. The Fund invests primarily in debt securities
issued by municipalities. The ability of the issuers of the debt securities to
meet their obligations may be affected by economic developments in a specific
state or municipality. The aggregate holdings by state ranged from 0.1% to 13.8%
of investments. At December 31, 1995, the five largest holdings by state were
Texas, 13.8%; Illinois, 9.1%; South Carolina, 8.8%; Arizona, 7.6%; and
Washington, 7.5%. For the six months ended December 31, 1995, the cost of
purchases and the proceeds of sales of investment securities other than
short-term investments were $16,767,918 and $18,082,174, respectively.
4. Shares of Beneficial Interest. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
For the For the
six months ended year ended
December 31, 1995 June 30, 1995
----------------- -------------
<S> <C> <C>
Shares of beneficial interest sold.......................... 694,314 2,098,487
Shares of beneficial interest issued in connection with
reinvestment of dividends and distributions.............. 22,846 60,072
Shares of beneficial interest repurchased................... (1,280,105) (3,763,896)
---------- ----------
Net decrease................................................ (562,945) (1,605,337)
========== ==========
</TABLE>
5. Federal Income Tax Status. At June 30, 1995 the Fund had a net capital
loss carryover of approximately $8,000, available through June 30, 2002 and
$284,000 available through June 30, 2003, to offset future capital gains to the
extent provided by regulations. To the extent that this net capital loss
carryover is used to offset future capital gains, it is probable that the gains
so offset will not be distributed to shareholders since any such distributions
may be taxable to shareholders as ordinary income. Additionally, net capital
losses of approximately $191,000, attributed to security transactions arising
after October 31, 1994, are treated as arising on the first day of the Fund's
next taxable year.
----------
<PAGE>
The 59 Wall Street Trust
Investment Adviser and
Administrator
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
Distributor
59 Wall Street Distributors, Inc.
6 St. James Avenue
Boston, Massachusetts 02116
This report is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus. Nothing herein contained is to be
considered an offer of sale or a solicitation of an offer to buy shares of The
59 Wall Street Tax Free Short/Intermediate Fixed Income Fund. Such offering is
made only by prospectus, which includes details as to offering price and other
material information.
