U.S. Treasury Money Fund
ANNUAL REPORT
June 30, 1996
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
------------ -------------
<C> <S> <C>
U.S. TREASURY BILLS (a) (93.1%)
$11,010,000 due 7/5/96, 4.86% to 4.89%................... $ 11,004,040
3,840,000 due 7/11/96, 4.85%........................... 3,834,827
9,335,000 due 7/25/96, 4.75% to 5.01%.................. 9,304,899
185,000 due 8/1/96, 5.01%............................ 184,202
30,540,000 due 8/8/96, 4.95% to 4.975%.................. 30,379,631
22,680,000 due 8/15/96, 4.795%.......................... 22,544,062
16,115,000 due 8/22/96, 4.98% to 5.08%.................. 15,998,008
25,420,000 due 9/19/96, 5.00% to 5.075%................. 25,135,228
12,330,000 due 10/17/96, 5.06% to 5.165% ............... 12,142,149
5,670,000 due 11/14/96, 5.16% to 5.245%................ 5,559,094
------------
TOTAL U.S. TREASURY BILLS ................. $136,086,140
------------
U.S. TREASURY NOTE (6.8%)
$10,000,000 due 7/31/96, 6.125%.......................... $ 10,007,220
------------
TOTAL INVESTMENTS, AT AMORTIZED COST ....................... 99.9% $146,093,360
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .............. 0.1 131,250
------ ------------
NET ASSETS ................................................100.0% $146,224,610
====== ============
- ----------------
(a) Rates shown are yields to maturity at time of purchase.
See Notes to Financial Statements.
</TABLE>
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at amortized cost and value (Note 1).................... $146,093,360
Cash................................................................. 15,824
Interest receivable ................................................. 255,769
------------
Total Assets ............................................ 146,364,953
------------
LIABILITIES:
Payables for:
Dividends declared (Note 1).......................................... 75,874
Shareholder servicing/Eligible institution fees (Note 2)............. 26,284
Investment advisory fee (Note 2)..................................... 17,523
Administrative fee (Note 2).......................................... 11,682
Trustees' fee........................................................ 4,461
Accrued expenses and other liabilities............................... 4,519
------------
Total Liabilities .................................... 140,343
------------
NET ASSETS, for 146,224,610 shares of beneficial interest outstanding.... $146,224,610
============
Net Assets Consist of:
Paid-in capital...................................................... $146,224,610
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE ........................... $1.00
=====
</TABLE>
STATEMENT OF OPERATIONS
For the year ended June 30, 1996
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest ............................................................ $ 8,537,084
------------
EXPENSES:
Expense reimbursement fee (Note 2)................................... 244,271
Investment advisory fee (Note 2)..................................... 239,680
Shareholder servicing/Eligible institution fees (Note 2)............. 178,791
Administrative fee (Note 2).......................................... 159,787
Custodian fee (Note 2)............................................... 35,314
Trustees' fees and expenses ......................................... 8,369
Amortization of organization expenses (Note 1)....................... 7,059
Miscellaneous expenses............................................... 18,973
------------
Total Expenses .............................................. 892,244
------------
NET INVESTMENT INCOME ................................................... $ 7,644,840
============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the years ended June 30,
------------------------------
1996 1995
------------ --------------
<S> <C> <C>
INCREASE IN NET ASSETS:
From Investment Activities:
Net investment income.................................................. $ 7,644,840 $ 5,335,841
Total declared as dividends to shareholders............................ (7,644,840) (5,335,841)
------------ ------------
From Share (Principal) Transactions at Net Asset Value of $1.00 per share:
Shares sold............................................................ 784,966,821 589,414,714
Shares issued in reinvestment of dividends............................. 3,492,546 1,916,678
Shares repurchased..................................................... (787,203,318) (588,093,858)
------------ ------------
Net increase in net assets resulting from share transactions......... 1,256,049 3,237,534
NET ASSETS:
Beginning of year...................................................... 144,968,561 141,731,027
------------ ------------
End of year ........................................................... $146,224,610 $144,968,561
============ ============
</TABLE>
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout each year
<TABLE>
<CAPTION>
For the years ended June 30,
-----------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income ................. 0.05 0.05 0.03 0.03 0.04
Dividends to shareholders from net
investment income ..................... (0.05) (0.05) (0.03) (0.03) (0.04)
------ ------ ------ ------ ------
Net asset value, end of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Cumulative investment return* ........... 4.96% 4.67% 2.74% 2.75% 4.48%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted)... $146,225 $144,969 $141,731 $136,584 $118,706
Ratio of expenses to average net assets* 0.56% 0.55% 0.55% 0.55% 0.55%
Ratio of net investment income to
average net assets ................... 4.78% 4.52% 2.72% 2.70% 4.35%
</TABLE>
- --------------
* Had the expense reimbursement agreement not been in place, the ratio of
expenses to average net assets for the years ended June 30, 1996, 1995, 1994,
1993 and 1992, would have been 0.57%, 0.58%, 0.57%, 0.55% and 0.56%,
respectively. For the same periods, the cumulative return of the Fund would
have been 4.91%, 4.64%, 2.72%, 2.75% and 4.47%, respectively. The expense
reimbursement fee agreement terminated on February 1, 1996.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Organization and Accounting Policies. The 59 Wall Street U.S. Treasury
Money 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 March 12, 1991. 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 June 30, 1996, there were three series of the Trust.
The following is a summary of significant accounting policies:
A. Valuation of Investments. The Fund 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
Fund'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 Fund, 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. 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 June 30, 1996, 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.
E. Deferred Organization Expense. Expenses incurred by the Fund in
connection with its organization and initial public offering of its shares
are being amortized on a straight-line basis over a five-year period.
F. Other. Investment transactions are accounted for on the trade date.
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 Trust 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 Fund's average daily net assets. For the year ended June 30, 1996, the Fund
incurred $239,680 for advisory services.
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 0.10% 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 year ended June 30, 1996, the Fund incurred $159,787 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. For the year ended June 30, 1996, the Fund incurred $359,520 for such
services, a portion of which was paid pursuant to an expense reimbursement
agreement.
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
Expense Reimbursement Fee. Under the terms of an expense reimbursement fee
agreement which terminated on February 1, 1996, 59 Wall Street Administrators,
Inc. had agreed to pay certain expenses of the Fund subject to reimbursement by
the Fund. To accomplish such reimbursement, 59 Wall Street Administrators, Inc.
received an expense reimbursement fee from the Fund, computed and paid monthly,
such that after such reimbursement the aggregate expenses did not exceed 0.55%
of the Fund's average daily net assets. 59 Wall Street Administrators, Inc.
incurred $264,827 in expenses on behalf of the Fund, including shareholder
servicing/eligible institution fees.
3. Investment Transactions. Purchases, and maturities and sales, of money
market instruments aggregated $1,169,079,516 and $1,175,951,342, respectively,
for the year ended June 30, 1996.
----------
<PAGE>
INDEPENDENT AUDITORS' REPORT
Trustees and Shareholders
The 59 Wall Street U.S. Treasury Money Fund
(a series of The 59 Wall Street Trust):
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of The 59 Wall Street U.S. Treasury
Money Fund (a series of The 59 Wall Street Trust) as of June 30, 1996, the
related statement of operations for the year then ended, the statement of
changes in net assets for the years ended June 30, 1996 and 1995, and the
financial highlights for each of the years in the five-year period ended June
30, 1996. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at June 30,
1996 by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The 59 Wall Street
U.S. Treasury Money Fund at June 30, 1996, and the results of its operations,
the changes in its net assets, and its financial highlights for the respective
stated periods in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Boston, Massachusetts
August 9, 1996
<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 U.S. Treasury Money Fund. Such offering is made only by
prospectus, which includes details as to offering price and other material
information.
