U.S. Treasury Money Fund
SEMI-ANNUAL REPORT
December 31, 1996
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996
(unaudited)
Principal Value
Amount (Note 1)
- ------------ -------------
U.S. TREASURY BILLS (a) (66.8%)
$ 1,080,000 due 1/2/97, 5.125% ......................... $ 1,079,846
12,760,000 due 1/16/97, 4.995% ........................ 12,733,443
29,905,000 due 2/6/97, 4.86% to 5.02%.................. 29,756,111
10,470,000 due 2/13/97,4.97% to 5.06% ................. 10,406,917
55,100,000 due 2/20/97, 4.85% to 4.95% ................ 54,725,355
17,700,000 due 2/27/97, 4.85% ......................... 17,564,079
14,235,000 due 3/6/97, 4.825% to 5.045%................ 14,110,207
8,700,000 due 3/20/97, 4.82% ......................... 8,609,143
11,215,000 due 4/3/97, 5.00% to 5.10%.................. 11,070,100
5,595,000 due 4/10/97, 4.90% to 4.97%................. 5,519,386
4,150,000 due 4/17/97, 5.04%.......................... 4,088,414
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TOTAL U.S. TREASURY BILLS .............. $169,663,001
------------
U.S. TREASURY NOTES (32.5%)
$20,000,000 due 1/31/97, 7.50% ......................... $ 20,034,699
32,470,000 due 2/28/97, 6.875%......................... 32,556,396
30,000,000 due 3/31/97, 6.875%......................... 30,124,029
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TOTAL U.S. TREASURY NOTES ............. $ 82,715,124
------------
Total Investments, at Amortized Cost ................ 99.3% $252,378,125
Cash and Other Assets in Excess of Liabilities .... 0.7 1,774,608
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Net Assets ........................................ 100.0% $254,152,733
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(a) Rates shown are yields to maturity at time of purchase.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
(unaudited)
ASSETS:
Investments, at amortized cost and value (Note 1) ............ $252,378,125
Interest Receivable........................................ 1,913,168
Cash ...................................................... 53,705
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Total Assets .......................................... 254,344,998
-----------
LIABILITIES:
Payables for:
Shareholder servicing/Eligible institution fees (Note 2) ... 74,173
Investment advisory fee (Note 2) ........................... 49,443
Administrative fee (Note 2) ................................ 26,639
Dividends declared (Note 1) ................................ 21,685
Custodian fee (Note 3) ..................................... 6,179
Trustees' fee .............................................. 1,120
Accrued expenses and other liabilities ..................... 13,026
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Total Liabilities ..................................... 192,265
------------
NET ASSETS, for 254,152,733 shares of beneficial
interest outstanding $254,152,733
============
Net Assets Consist of:
Paid-in capital............................................. $254,152,733
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE .................... $1.00
=====
STATEMENT OF OPERATIONS
For the six months ended December 31, 1996
(unaudited)
NET INVESTMENT INCOME:
Income:
Interest ................................................... $ 4,752,420
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Expenses:
Shareholder servicing/Eligible institution fees (Note 2).... 204,196
Investment advisory fee (Note 2)............................ 136,131
Administrative fee (Note 2)................................. 90,754
Custodian fee (Note 3)...................................... 26,081
Trustees' fees and expenses................................. 4,296
Miscellaneous expenses...................................... 40,075
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Total Expenses ............................................. 501,533
Fees paid indirectly (Note 3)...................... (3,709)
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Net Expenses ...................................... 497,824
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NET INVESTMENT INCOME ............................................ $ 4,254,596
==========
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the
six months ended For the
December 31, 1996 year ended
(unaudited) June 30, 1996
----------------- -------------
INCREASE IN NET ASSETS:
From Investment Activities:
Net investment income.......................... $ 4,254,596 $ 7,644,840
Total declared as dividends
to shareholders.............................. (4,254,596) (7,644,840)
------------ ------------
From Share (Principal) Transactions at Net Asset
Value of $1.00 per share:
Shares sold................................... 502,144,293 784,966,821
Shares issued in reinvestment of dividends.... 1,935,844 3,492,546
Shares repurchased............................ (396,152,014) (787,203,318)
------------ ------------
Net increase in net assets resulting from
share transactions........................ 107,928,123 1,256,049
NET ASSETS:
Beginning of period........................... 146,224,610 144,968,561
------------ ------------
End of period ................................ $254,152,733 $146,224,610
============ ============
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, 1996 ---------------------------------------------------
(unaudited) 1996 1995 1994 1993 1992
----------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income.................... 0.02 0.05 0.05 0.03 0.03 0.04
Dividends to shareholders from net
investment income........................ (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
----- ----- ----- ----- ----- -----
Net asset value, end of period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===== ===== ===== ===== ===== =====
Total return (1) .......................... 2.37% 4.96% 4.67% 2.74% 2.75% 4.48%
Ratios/Supplemental Data:
Net assets, end of period
(000's omitted)........................ $254,153 $146,225 $144,969 $141,731 $136,584 $118,706
Ratio of expenses to average
net assets(1) ......................... 0.55%(2) 0.56% 0.55% 0.55% 0.55% 0.55%
Ratio of net investment income to
average net assets..................... 4.69%(2) 4.78% 4.52% 2.72% 2.70% 4.35%
</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, 1993 and 1992, would have been 0.57%, 0.58%, 0.57%, 0.55% and 0.56%,
respectively. For the same periods, the total return would have been 4.91%,
4.64%, 2.72%, 2.75% and 4.47%, respectively. The expense reimbursement
agreement terminated on February 1, 1996.
(2) Annualized.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
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 December 31, 1996, 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 December 31, 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. 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 six months ended December 31, 1996,
the Fund incurred $136,131 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 six months ended December 31, 1996, the Fund incurred
$90,754 for administrative services.
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
(unaudited)
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 from the
Fund calculated daily and paid monthly at an annual rate equivalent to 0.225% of
the average daily net assets of the Fund. For the six months ended December 31,
1996, the Fund incurred $204,196 for shareholder servicing/eligible institution
services.
3. Investment Transactions. Purchases and maturities and sales of money
market instruments aggregated $698,923,538 and $596,382,250, respectively, for
the six months ended December 31, 1996. Custody fees for the Fund were reduced
by $3,709 as a result of an expense offset arrangement with the Funds'
custodian.
<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.
