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Money Market Fund
SEMI-ANNUAL REPORT
December 31, 1995
<PAGE>
THE 59 WALL STREET MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
(unaudited)
ASSETS:
Investment in U.S. Money Market Portfolio
(the "Portfolio"), at value (Note 1) ................... $651,943,706
------------
Total Assets ........................................ 651,943,706
------------
LIABILITIES:
Payables for:
Expense reimbusement fee (Note 2) ..................... 139,064
Administrative fee (Note 2) ........................... 44,078
Dividends declared (Note 1) ........................... 3,265
------------
Total Liabilities ................................... 186,407
------------
NET ASSETS, for 651,757,299 shares of beneficial
interest outstanding ...................................... $651,757,299
============
Net Assets Consist of:
Paid-in capital .......................................... $651,757,299
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE ................ $ 1.00
============
STATEMENT OF OPERATIONS
For the six months ended December 31, 1995
(unaudited)
INVESTMENT INCOME (Note 1):
Interest income allocated from Portfolio ............... $ 20,060,430
Expenses allocated from Portfolio ...................... (795,683)
------------
Total Investment Income ........................... 19,264,747
------------
EXPENSES:
Expense reimbursement fee (Note 2) ..................... 809,259
Administrative fee (Note 2) ............................ 253,298
------------
Total Expenses .................................... 1,062,557
------------
NET INVESTMENT INCOME ..................................... $ 18,202,190
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET MONEY MARKET 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 IN NET ASSETS:
From Investment Activities:
Net investment income ......................................... $ 18,202,190 $ 29,009,473
Total declared as dividends to shareholders ................... (18,202,190) (29,009,473)
--------------- ---------------
From Share (Principal) Transactions at Net Asset Value
of $1.00 per share:
Shares sold ................................................... 1,828,998,432 3,228,736,890
Shares issued in reinvestment of dividends .................... 8,778,798 13,807,517
Shares repurchased ............................................ (1,810,866,727) (3,174,679,143)
--------------- ---------------
Net increase in net assets resulting from share transactions 26,910,503 67,865,264
NET ASSETS:
Beginning of period ........................................... 624,846,796 556,981,532
--------------- ---------------
End of period ................................................. $ 651,757,299 $ 624,846,796
=============== ===============
</TABLE>
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout each
period
<TABLE>
<CAPTION>
For the
six months ended For the years ended June 30,
December 31, 1995 ------------------------------------------------
(unaudited) 1995 1994 1993 1992
----------------- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................ $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income............................. 0.03 0.05 0.03 0.03 0.05
Dividends to shareholders from net investment
income............................................ (0.03) (0.05) (0.03) (0.03) (0.05)
----- ----- ----- ------ -----
Net asset value, end of period...................... $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Cumulative investment return***..................... 2.74% 4.92% 2.94% 3.02% 4.79%
Ratios/Supplemental Data*:
Net assets, end of period (000's omitted)......... $651,757 $624,827 $556,982 $684,055 $596,008
Ratio of expenses to average net assets***........ 0.55%** 0.55% 0.55% 0.53% 0.53%
Ratio of net investment income to average net
assets.......................................... 5.39%** 4.86% 2.88% 2.97% 4.70%
</TABLE>
- ----------
* Ratios include the Fund's share of Portfolio income and expenses, as
appropriate.
** Annualized
*** Had the expense payment agreement, which commenced July 1, 1993, not been
in place, the ratio of expenses to average net assets for the six months
ended December 31, 1995, and for the years ended June 30, 1995 and 1994,
would have been 0.57%, 0.56% and 0.55%, respectively. For the same period,
the cumulative return of the Fund will have been 2.72%, 4.90% and 2.94%,
respectively.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Accounting Policies. The 59 Wall Street Money Market
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
December 12, 1983. 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 Fund invests all of its investable assets in U.S. Money Market
Portfolio (the "Portfolio"), a diversified, open-end management investment
company having the same investment objectives as the Fund. The value of such
investment reflects the Fund's proportionate interest in the net assets of the
Portfolio (approximately 100% at December 31, 1995). The performance of the Fund
is directly affected by the performance of the Portfolio. The financial
statements of the Portfolio, including the schedule of investments, are included
elsewhere in this report and should be read in connection with the Fund's
financial statements.
The following is a summary of significant accounting policies:
A. Valuation of Investments. Valuation of investments by the Portfolio
is discussed in Note 1 of the Portfolio's Notes to Financial Statements
which are included elsewhere in this report.
B. Investment Income. The Fund earns interest income daily, net of
Portfolio expenses, based on its investment in the Portfolio. Realized gain
and loss, if any, from investment transactions are determined by the
Portfolio on the basis of identified cost, when recognized, and allocated
to the Fund, along with net investment income, based on its investment in
the Portfolio. Prior to the Fund's investment in the Portfolio, the Fund
held its investments directly.
C. 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 provisions of the Internal Revenue Code applicable to
regulated investment companies and to distribute all its taxable income to
its shareholders. Accordingly, no Federal income or excise tax provision is
required. At December 31, 1995, the cost of investments for Federal income
tax purposes was equal to the amortized cost of investments for financial
statement purposes.
D. Dividends and Distributions. Dividends from net investment income
are declared daily and paid monthly to shareholders.
2. Transactions with Affiliates.
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 0.075% 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
$253,298 for administrative services.
Shareholder Servicing/Eligible Institution Agreement. The Trust has a
shareholder servicing and an eligible institution agreement with Brown Brothers
Harriman & Co. for which Brown Brothers Harriman & Co. receives a fee calculated
monthly at an annual rate equivalent to 0.225% of the Fund's average daily net
assets.
<PAGE>
U.S. MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
Expense Reimbursement Fee. 59 Wall Street Administrators, Inc. has agreed
to pay certain expenses of the Fund subject to reimbursement by the Fund. To
accomplish such reimbursement, 59 Wall Street Administrators, Inc. receives an
expense reimbursement fee from the Fund, computed and paid monthly, such that
after such reimbursement the aggregate expenses of the Fund, including the
allocation of the Fund's pro rata portion of the Portfolio's expenses, will not
exceed 0.55% of the Fund's average daily net assets. For the six months ended
December 31, 1995, 59 Wall Street Administrators, Inc. incurred $855,670 in
expenses on behalf of the Fund, including shareholder servicing/eligible
institution fees of $759,900. The expense reimbursement fee agreement will
terminate on the earlier of either July 1, 1997 or the date on which the
payments made thereunder equal the prior payment of such reimbursable expenses.
3. Investment Transactions. Investment transactions of the Portfolio are
discussed in Note 3 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
----------
<PAGE>
U.S. MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1995
(expressed in U.S. dollars)
(unaudited)
<TABLE>
<CAPTION>
Annualized
Yield on
Principal Maturity Date of Value
Amount Date Purchase (Note 1)
- ----------- -------- -------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (21.4%)
$50,000,000 Federal Home Loan Bank Floating Rate Notes ................ 5/6/96 5.780%* $ 49,992,815
90,000,000 Federal National Mortgage Assoc. Discount Notes ........... 1/19/96 5.670 89,744,850
------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS ........... $139,737,665
------------
CERTIFICATES OF DEPOSIT (42.2%)
$10,000,000 ABN AMRO Bank - London Branch ............................. 2/16/96 5.780% $ 9,999,656
15,000,000 ABN AMRO Bank - London Branch ............................. 3/5/96 5.780 14,999,251
10,000,000 Bank of Nova Scotia - New York Branch ..................... 3/12/96 5.670 10,000,195
15,000,000 Bank of Nova Scotia - New York Branch ..................... 10/11/96 5.740 15,001,118
25,000,000 Bankers Trust - London Branch ............................. 4/10/96 5.820 25,045,614
25,000,000 Banque Nationale de Paris - London Branch ................. 2/20/96 5.720 25,000,793
25,000,000 Credit Suisse - New York Branch ........................... 1/19/96 5.760 25,000,308
25,000,000 Industrial Bank of Japan, Ltd. - New York Branch .......... 1/12/96 5.910 25,000,121
25,000,000 Mitsubishi Bank, Ltd. - London Branch ..................... 2/9/96 6.050 25,000,533
25,000,000 Rabobank Nederland - London Branch ........................ 1/31/96 5.730 25,000,994
25,000,000 Societe Generale - New York Branch ........................ 2/26/96 5.820 25,001,663
25,000,000 Sumitomo Bank, Ltd. - New York Branch ..................... 1/12/96 5.980 25,000,150
25,000,000 Westdeutsche Landesbank - London Branch ................... 2/1/96 5.760 25,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT .......................... $275,050,396
------------
COMMERCIAL PAPER (22.8%)
$25,000,000 American Express Credit Corp. ............................. 3/8/96 5.770% $ 24,737,583
25,000,000 Chevron Oil Finance Co. ................................... 2/2/96 5.700 24,874,444
25,000,000 CIT Group Holdings, Inc. .................................. 1/31/96 5.840 24,879,167
25,000,000 Ford Motor Credit Corp. ................................... 3/29/96 5.750 24,656,556
25,000,000 General Electric Capital Corp. ............................ 2/16/96 5.790 24,820,153
25,000,000 Prudential Funding Corp. .................................. 3/5/96 5.520 24,757,333
------------
TOTAL COMMERCIAL PAPER ................................. $148,725,236
------------
</TABLE>
<PAGE>
U.S. MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1995
(expressed in U.S. dollars)
(unaudited)
<TABLE>
<CAPTION>
Annualized
Yield on
Principal Maturity Date of Value
Amount Date Purchase (Note 1)
- ----------- -------- -------- ------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENTS (12.8%)
$33,254,092 Bankers Trust Corp. ...................................... 1/2/96 5.800% $33,254,092
(Agreement dated 12/29/95 collateralized by
$33,535,000 U.S. Treasury Notes 5.50%, due 11/15/98;
$33,275,522 to be received upon maturity)
50,000,000 Salomon Brothers, Inc. ................................... 1/2/96 5.600 50,000,000
(Agreement dated 12/29/95 collateralized by
$46,093,000 U.S. Treasury Notes 4.75%-7.875%,
due 10/31/98-11/15/04; $50,031,111 to be received
upon maturity)
------------
TOTAL REPURCHASE AGREEMENTS ............................ $ 83,254,092
------------
TOTAL INVESTMENTS, AT AMORTIZED COST ..................................... 99.2% $646,767,389
OTHER ASSETS IN EXCESS OF LIABILITIES .................................... 0.8 5,176,417
------ ------------
NET ASSETS .............................................................. 100.0% $651,943,806
====== ============
</TABLE>
- ----------
* Variable Rate Instrument. Interest rates change on specific date (such as a
coupon or interest payment date). Instrument is payable on demand and is
collateralized by either letters of credit or other credit support
agreements from major banks. The interest rate shown represents the
December 31, 1995 rate.
See Notes to Financial Statements.
<PAGE>
U.S. MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
(expressed in U.S. dollars)
(unaudited)
ASSETS:
Investments*, at amortized cost and value (Note 1) ........ $646,767,389
Interest receivable ....................................... 5,345,628
Deferred organization expenses (Note 1) ................... 65,384
------------
Total Assets ......................................... 652,178,401
------------
LIABILITIES:
Payables for:
Investment advisory fee (Note 2) ........................ 88,370
Trustees' fee (Note 2) .................................. 63,770
Administrative fee (Note 2) ............................. 20,620
Accrued expenses and other liabilities ................. 61,835
------------
Total Liabilities .................................... 234,595
------------
NET ASSETS ................................................... $651,943,806
============
Net Assets Consist of:
Paid-in capital ........................................... $651,943,806
============
- ----------
* Including repurchase agreements of $83,254,092.
STATEMENT OF OPERATIONS
For the six months ended December 31, 1995
(expressed in U.S. dollars)
(unaudited)
INVESTMENT INCOME:
Interest .................................................. $20,060,431
-----------
EXPENSES:
Investment advisory fee (Note 2) .......................... 507,883
Administrative fee (Note 2) ............................... 118,506
Custodian fee ............................................. 104,978
Trustees' fees and expenses (Note 2) ...................... 32,168
Amortization of organization expenses (Note 1) ............ 8,600
Miscellaneous ............................................. 23,549
-----------
Total Expenses ....................................... 795,684
-----------
NET INVESTMENT INCOME ........................................ $19,264,747
===========
See Notes to Financial Statements.
<PAGE>
U.S. MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
For the period
For the October 31, 1994
six months ended (commencement of
December 31, 1995 operations) to
(unaudited) June 30, 1995
--------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS:
From Investment Activities:
Net investment income ............................... $ 19,264,747 $ 23,042,293
--------------- ---------------
Capital Transactions:
Proceeds from contributions ......................... 391,394,906 2,008,122,202
Value of withdrawals ................................ (383,826,596) (1,406,153,846)
--------------- ---------------
Net increase in net assets resulting from capital
transactions ................................ 7,568,310 601,968,356
--------------- ---------------
Net increase in net assets .............................. 26,833,057 625,010,649
NET ASSETS:
Beginning of period ................................. 625,110,749 100,100
--------------- ---------------
End of period ....................................... $ 651,943,806 $ 625,110,749
=============== ===============
</TABLE>
FINANCIAL HIGHLIGHTS
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
For the period
For the October 31, 1994
six months ended (commencement of
December 31, 1995 operations) to
(unaudited) June 30, 1995
--------------- ---------------
<S> <C> <C>
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)................ $651,944 $651,111
Ratio of expenses to average net assets*................. 0.24% 0.25%
Ratio of net investment income to average net assets*.... 5.69% 5.62%
</TABLE>
- ----------
* Annualized
See Notes to Financial Statements.
<PAGE>
U.S. MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(expressed in U.S. dollars)
(unaudited)
1. Organization and Accounting Policies. U.S. Money Market Portfolio (the
"Portfolio") is registered under the Investment Company Act of 1940, as amended,
as a no-load, diversified, open-end management investment company which was
organized as a trust under the laws of the State of New York on June 15, 1993.
The Portfolio commenced operations on October 31, 1994 and received a
contribution of certain assets and liabilities, including securities, with a
value of $554,134,100 on that date from The 59 Wall Street Money Market Fund in
exchange for a beneficial interest in the Portfolio. The Declaration of Trust
permits the Trustees to create an unlimited number of beneficial interests in
the Portfolio.
The financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America, and reflect the
following policies:
A. Valuation of Investments. The Portfolio values its investments at
amortized cost, which approximates market value. The amortized cost method
values a security at its cost at the time of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium. The
Portfolio's use of amortized cost is in compliance with Rule 2a-7 of the
Investment Company Act of 1940.
B. Interest Income. Interest income consists of interest accrued and
discount earned (including both original issue and market discount) and
premium amortization on the investments of the Portfolio, accrued ratably
to the date of maturity, plus or minus net realized short-term gain or
loss, if any, on investments.
C. Federal Income Taxes. The Portfolio will be treated as a
partnership for Federal income tax purposes. As such, each investor in the
Portfolio will be subject to taxation on its share of the Portfolio's
ordinary income and capital gains. It is intended that the Portfolio's
assets will be managed in such a way that an investor in the Portfolio will
be able to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. Accordingly, no provision for
Federal income taxes is necessary. At December 31, 1995, the cost of
investments for Federal income tax purposes was equal to the amortized cost
of the investments for financial statement purposes.
D. Repurchase Agreements. The Portfolio at all times maintains
possession of securities collateralizing repurchase agreements.
Additionally, the Portfolio monitors the value of such securities,
including accrued interest, to ensure the collateral at least equals 100%
of the value of the repurchase agreement.
E. Deferred Organization Expenses. Expenses incurred by the Portfolio
in connection with its organization are being amortized by the Portfolio on
a straight-line basis over a five-year period.
F. Other. Investment transactions are accounted for on a trade date
basis. Realized gain and loss, if any, from investment transactions are
determined on the basis of identified cost.
2. Transactions with Affiliates.
Investment Advisory Fee. The Portfolio has an investment advisory agreement
with Brown Brothers Harriman & Co. (the "Adviser") for which it pays the Adviser
a fee calculated daily and paid monthly at an annual rate equivalent to 0.15% of
the Portfolio's average net assets. For the six months ended December 31, 1995,
the Portfolio incurred $507,883 for advisory services.
Administrative Fee. The Portfolio has an administrative agreement with
Brown Brothers Harriman Trust Company (Cayman) Ltd. (the "Administrator") for
which it pays the Administrator a fee calculated daily and paid monthly at an
annual rate equivalent to 0.035% of the Portfolio's average net assets. The
Administrator has a subadministration agreement with Signature Financial Group
(Cayman) Ltd. for which Signature Financial Group (Cayman) Ltd. 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 Portfolio incurred $118,506 for administrative services.
<PAGE>
U.S. MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (continued)
(expressed in U.S. dollars)
(unaudited)
Trustee Fees. Each Trustee of the Portfolio receives an annual retainer
paid by the Portfolio. Each Trustee is also reimbursed for out-of-pocket
expenses incurred in connection with board meetings. For the six months ended
December 31, 1995, the Portfolio incurred $31,344 for Trustee fees and expenses.
3. Investment Transactions. Purchases, and maturities and sales, of money
market instruments, excluding securities subject to repurchase agreements,
aggregated $4,488,944,644 and $4,333,600,000, respectively, for the six months
ended December 31, 1995.
----------
<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
Shareholder Servicing Agent
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
(800) 625-5759
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 Money Market Fund. Such offering is made only by prospectus,
which includes details as to offering price and other material information.
