U.S. Treasury Money Fund
ANNUAL REPORT
June 30, 1997
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
PORTFOLIO OF INVESTMENTS
as of June 30, 1997
Principal Value
Amount (Note 1)
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U.S. TREASURY BILLS (a) (28.1%)
$22,300,000 due 7/10/97, 4.80%...................... $ 22,273,240
1,165,000 due 7/17/97, 4.55%...................... 1,162,644
2,550,000 due 7/24/97, 4.67%...................... 2,542,392
18,715,000 due 8/21/97, 4.88% to 5.06%............. 18,584,576
600,000 due 9/4/97, 4.915%...................... 594,675
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TOTAL U.S. TREASURY BILLS .......... $ 45,157,527
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U.S. TREASURY NOTES (70.1%)
$35,000,000 due 7/15/97, 8.50%...................... $ 35,045,003
17,315,000 due 7/31/97, 5.875%..................... 17,322,005
30,000,000 due 8/15/97, 6.50%...................... 30,045,201
30,000,000 due 9/30/97, 5.75%...................... 30,026,660
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Total U.S. Treasury Notes .......... $112,438,869
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TOTAL INVESTMENTS, AT AMORTIZED COST .............. 98.2% $157,596,396
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .... 1.8% 2,861,894
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NET ASSETS ........................................ 100.0% $160,458,290
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(a) Rates shown are yields to maturity at time of purchase.
See Notes to Financial Statements.
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THE 59 WALL STREET U.S. TREASURY MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997
ASSETS:
Investments, at amortized cost and value (Note 1) ....... $157,596,396
Interest receivable ..................................... 2,962,973
Cash .................................................... 18,127
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Total Assets .................................... 160,577,496
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LIABILITIES:
Payables for:
Dividends declared (Note 1) .......................... 41,743
Shareholder servicing/Eligible
institution fees (Note 2) ......................... 33,021
Investment advisory fee (Note 2) ..................... 22,014
Administrative fee (Note 2) .......................... 14,676
Trustees' fee ........................................ 1,012
Accrued expenses and other liabilities ............... 6,740
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Total Liabilities ............................... 119,206
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NET ASSETS, for 160,458,290 shares of
beneficial interest outstanding ............................. $160,458,290
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Net Assets Consist of:
Paid-in capital .......................................... $160,458,290
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE .................. $1.00
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STATEMENT OF OPERATIONS
For the year ended June 30, 1997
INVESTMENT INCOME:
Income:
Interest ............................................. $ 9,915,980
-----------
Expenses:
Shareholder servicing/Eligible
institution fees (Note 2) ...................... 429,782
Investment advisory fee (Note 2) ..................... 286,522
Administrative fee (Note 2) .......................... 191,014
Custodian fee (Note 3) ............................... 49,849
Trustees' fees and expenses .......................... 12,359
Miscellaneous expenses ............................... 75,306
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Total Expenses ....................................... 1,044,832
Fees paid indirectly (Note 3) ............... (4,001)
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Net Expenses ................................ 1,040,831
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NET INVESTMENT INCOME ...................................... $ 8,875,149
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See Notes to Financial Statements.
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THE 59 WALL STREET U.S. TREASURY MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the For the
year ended year ended
June 30, 1997 June 30, 1996
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INCREASE IN NET ASSETS:
From Investment Activities:
Net investment income .................. $ 8,875,149 $ 7,644,840
Total declared as dividends
to shareholders .................... (8,875,149) (7,644,840)
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From Share (Principal) Transactions at
Net Asset Value of $1.00 per share:
Shares sold ............................ 916,086,152 784,966,821
Shares issued in reinvestment of
dividends............................ 3,815,250 3,492,546
Shares repurchased ..................... (905,667,722) (787,203,318)
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Net increase in net assets resulting
from share transactions .......... 14,233,680 1,256,049
NET ASSETS:
Beginning of period .................... 146,224,610 144,968,561
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End of period .......................... $ 160,458,290 $ 146,224,610
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FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout each year
<TABLE>
<CAPTION>
For the years ended June 30,
---------------------------------------------------------
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<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............................. 0.04 0.05 0.05 0.03 0.03
Dividends to shareholders from net
investment income................................. (0.04) (0.05) (0.05) (0.03) (0.03)
------ ------ ------ ------ ------
Net asset value, end of period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return (1) ................................... 4.75% 4.96% 4.67% 2.74% 2.75%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)......... $160,458 $146,225 $144,969 $141,731 $136,584
Ratio of expenses to average net assets(1) ....... 0.55% 0.56% 0.55% 0.55% 0.55%
Ratio of net investment income to
average net assets.............................. 4.65% 4.78% 4.52% 2.72% 2.70%
</TABLE>
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(1) 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 and 1993, would have been 0.57%, 0.58%, 0.57% and 0.55%, respectively.
For the same periods, the total return would have been 4.91%, 4.64%, 2.72%
and 2.75%, respectively. The expense reimbursement agreement terminated on
February 1, 1996.
See Notes to Financial Statements.
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THE 59 WALL STREET U.S. TREASURY MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant 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, 1997, there were three
series of the Trust.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles, which require management to make certain
estimates and assumptions at the date of the financial statements and are based,
in part, on the following accounting policies. Actual results could differ from
those estimates.
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 of its taxable income
to its shareholders. Accordingly, no Federal income tax provision is
required. At June 30, 1997, 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. 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, 1997, the Fund
incurred $286,522 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 services 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, 1997, the Fund incurred $191,014 for
administrative services.
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THE 59 WALL STREET U.S. TREASURY MONEY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
Shareholder Servicing/Eligible Institution Agreement. The Trust has a
shareholder servicing agreement and an eligible institution agreement with Brown
Brothers Harriman & Co. for which Brown Brothers Harriman & Co. receives a fee
from the Fund calculated daily and paid monthly at an annual rate equivalent to
0.225% of the Fund's average daily net assets. For the year ended June 30, 1997,
the Fund incurred $429,782 for such services.
3. Investment Transactions. Purchases, and maturities and sales, of money
market instruments aggregated $1,455,469,712 and $1,450,532,380, respectively,
for the year ended June 30, 1997. Custody fees for the Fund were reduced by
$4,001 as a result of an expense offset arrangement with the Fund's custodian.
<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, 1997, the
related statement of operations for the year then ended, the statement of
changes in net assets for the years ended June 30, 1997 and 1996, and the
financial highlights for each of the years in the five-year period ended June
30, 1997. 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,
1997 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, 1997, the results of its operations, the
changes in its net assets, and its financial highlights for respective stated
periods in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Boston, Massachusetts
August 15, 1997
<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.
