<TABLE>
<CAPTION>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1999
Principal Maturity Interest
Amount Date Rate Value
--------- -------- -------- -----
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (89.0%)
ESCROWED TO MATURITY (a) (1.9%)
$270,000 Waupaca, Wisconsin, School District....................... 04/01/00 7.000% $ 276,593
-----------
GENERAL OBLIGATIONS (2.0%)
$200,000 New York, New York (LOC: Chase Manhattan Bank)*........... 08/01/22 3.350% $ 200,000
100,000 Chicago, Illinois (LOC: CIBC)*............................ 01/01/12 3.500 100,000
-----------
TOTAL GENERAL OBLIGATIONS .............................. $ 300,000
-----------
PRE-REFUNDED (a) (13.7%)
$ 20,000 Arlington, Texas, Water & Sewer Authority................. 06/01/00 6.600% $ 20,462
210,000 Delaware County, Pennsylvania, Hospital................... 08/15/99 7.125 215,076
105,000 Delaware County, Pennsylvania, Hospital................... 08/15/99 7.200 107,547
75,000 Illinois Health Facilities Authority...................... 01/01/00 6.000 77,314
100,000 Mecklenberg County, North Carolina........................ 04/01/00 6.750 104,322
25,000 Miami, Florida, Sports & Exhibition Authority............. 04/01/00 7.100 26,049
600,000 New York State Energy Research & Development
(LOC: 1st National Bank Chicago)*....................... 10/01/29 3.800 600,000
145,000 Ohio State Building Authority, Correctional Facility...... 08/01/99 7.350 148,342
500,000 Texas State............................................... 12/01/99 8.300 509,451
45,000 West Virginia School Building Authority................... 07/01/00 6.000 45,827
100,000 Wisconsin Health & Educational Facility Authority......... 08/15/99 7.400 102,450
45,000 Wisconsin State Health & Educational Facilities........... 10/01/99 7.125 46,279
-----------
TOTAL PRE-REFUNDED ....................................... $ 2,003,119
-----------
HOUSING (4.1%)
$600,000 Florida Housing Finance Agency
(LOC: KredietBank NV)*.................................. 12/01/08 3.500% $ 600,000
-----------
HEALTH CARE (14.3%)
$100,000 Connecticut State Health & Education Facilities
Authority*.............................................. 07/01/29 3.600% $ 100,000
200,000 Cuyahoga County, Ohio Hospital
(LOC: Morgan Guaranty)*................................. 01/01/16 3.800 200,000
500,000 Cuyahoga County, Ohio Hospital
(LOC: Morgan Guaranty)*................................. 01/01/26 3.450 500,000
600,000 Massachusetts State Health & Educational Facilities
Authority (LOC: MBIA)*.................................. 07/01/05 3.400 600,000
600,000 Missouri State Health & Educational Facilities Authority
(LOC: Morgan Guaranty)*................................. 11/01/19 3.450 600,000
100,000 North Carolina Medical Care Community Health
Systems (LOC: AMBAC)*................................... 01/15/28 3.300 100,000
-----------
TOTAL HEALTH CARE ........................................ $ 2,100,000
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1999 (continued)
Principal Maturity Interest
Amount Date Rate Value
--------- -------- -------- -----
<S> <C> <C> <C> <C>
INDUSTRIAL (17.7%)
$100,000 Ascension Parish, Louisiana, Pollution Control
(LOC: CFSB)*............................................ 12/01/09 3.300% $ 100,000
100,000 Beaver County, Pennsylvania, Industrial Development
Authority (Gty: Duquesne)*.............................. 08/01/20 3.400 100,000
100,000 California Pollution Control Financing Authority,
Pollution Control (Gty: Southern Cal Edison)*........... 02/28/08 3.350 100,000
600,000 East Baton Rouge, Louisiana, Pollution Control
(Gty: Exxon)*........................................... 03/01/22 3.450 600,000
100,000 Eddy County, New Mexico, Pollution Control
(LOC: Rabobank)*........................................ 02/01/03 3.650 100,000
200,000 Forsyth, Montana Pollution Control (LOC: Rabobank)*....... 01/01/18 3.450 200,000
100,000 Harris County, Texas, Industrial Development Corp.
(Gty: Shell Oil)*....................................... 04/01/27 3.350 100,000
200,000 Jackson County, Mississippi, Port Facility
(Gty: Chevron)*......................................... 06/01/23 3.400 200,000
100,000 Ohio State Air Quality Development Authority
(LOC: Deutsche Bank)*................................... 10/01/01 3.800 100,000
600,000 Salt Lake County, Utah, Pollution Control
(Gty: British Petroleum)*............................... 02/01/08 3.400 600,000
200,000 Sullivan County, Tennessee Industrial Development
(LOC: UBS)*............................................. 10/01/16 3.800 200,000
100,000 Sweetwater County, Wyoming, Pollution Control
(LOC: CIBC)*............................................ 01/01/14 3.450 100,000
100,000 Uinta County, Wyoming, Pollution Control
(Gty: Chevron)*......................................... 12/01/22 3.400 100,000
-----------
TOTAL INDUSTRIAL ......................................... $ 2,600,000
-----------
TRANSPORTATION (6.2%)
$100,000 Grapevine, Texas Industrial Development
(LOC: Morgan Guaranty)*................................. 12/01/24 3.850% $ 100,000
100,000 Lake Charles, Louisiana, Harbor & Terminal District
(Gty: E.I. Dupont)*..................................... 11/01/11 3.450 100,000
200,000 Lone Star, Texas, Airport Improvement Authority
(LOC: Royal Bank of Canada)*............................ 12/01/14 3.850 200,000
500,000 West Virginia State Parkways Economic Development &
Tourism Authority....................................... 05/15/00 4.800 505,727
-----------
TOTAL TRANSPORTATION ..................................... $ 905,727
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1999 (continued)
Principal Maturity Interest
Amount Date Rate Value
--------- -------- -------- -----
<S> <C> <C> <C> <C>
UTILITIES (22.2%)
$200,000 Apache County, Arizona Industrial Development
(LOC: Toronto Dominion Bank)*........................... 12/15/18 3.550% $ 200,000
400,000 Burke County, Georgia, Pollution Control
(Gty: Georgia Power Co.)*............................... 07/01/24 3.500 400,000
100,000 Columbia, Alabama Industrial Pollution Control
(Gty: Alabama Power Co.)*............................... 10/01/22 3.400 100,000
100,000 De Soto Parish, Louisiana Pollution Control
(LOC: WDLB)*............................................ 07/01/18 3.450 100,000
300,000 Farmington, New Mexico Pollution Control
(LOC: Bank of America)*................................. 05/01/24 3.400 300,000
600,000 Long Island Power Authority (LOC: WDLB;
Bayerische Landesbank)*................................. 05/01/33 3.500 600,000
400,000 Long Island Power Authority (LOC: ABN Amro)*.............. 05/01/33 3.850 400,000
100,000 Manatee County, Florida Pollution Control
(Gty: Florida Power & Light)*........................... 09/01/24 3.350 100,000
200,000 Monroe County, Georgia Pollution Control
(Gty: Georgia Power Co.)*............................... 07/01/25 3.500 200,000
100,000 Municipal Electric Authority, Georgia
(LOC: ABN Amro)*........................................ 01/01/26 3.500 100,000
150,000 Murray City, Utah Electric................................ 06/01/00 6.750 154,142
600,000 York County, Pennsylvania, Industrial Development
Authority (Gty: PSE&G)*................................. 09/01/20 3.250 600,000
-----------
TOTAL UTILITIES .......................................... $ 3,254,142
-----------
WATER/SEWER (6.9%)
$500,000 Arlington, Texas, Water & Sewer........................... 06/01/00 4.500% $ 505,128
100,000 Delaware County, Pennsylvania, Industrial
Development Authority (Gty: Kimberly Clark)*............ 12/01/18 3.500 100,000
100,000 Detroit, Michigan, Water Supply Systems (Gty: FGIC)*...... 07/01/13 3.450 100,000
200,000 Kemmerer, Wyoming, Pollution Control (Gty: Exxon)*........ 11/01/14 3.400 200,000
100,000 Ohio State Water Development Authority (LOC: UBS)*........ 06/01/01 3.500 100,000
-----------
TOTAL WATER/SEWER ........................................ $ 1,005,128
-----------
TOTAL MUNICIPAL BONDS .................................... $13,044,709
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1999 (continued)
Principal Maturity Interest
Amount Date Rate Value
--------- -------- -------- -----
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT (0.1%)
$ 9,995 J.P. Morgan & Co. (Agreement dated 06/30/99
collateralized by $9,995 U.S. Treasury Notes
4.500%, due 01/31/01; $9,996 to be received
upon maturity).......................................... 07/01/99 4.600% $ 9,995
-----------
TOTAL INVESTMENTS, AT AMORTIZED COST ............................................ 89.1% $13,054,704
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .................................. 10.9 1,599,753
----- -----------
NET ASSETS ..................................................................... 100.0% $14,654,457
===== ===========
</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 orginally stated maturity date.
* Variable Rate Instrument. Interest rates change on specific date (such as
a coupon or interest payment date). The yield shown represents the June 30,
1999 coupon rate.
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999
<S> <C>
ASSETS:
Investments, at amortized cost and value (Note 1)...................................... $13,054,704
Receivables for:
Interest............................................................................ 64,622
Fund shares sold.................................................................... 1,550,000
-----------
Total Assets .................................................................. 14,669,326
-----------
LIABILITIES:
Payables for:
Fund shares purchased............................................................... 6,181
Dividends declared (Note 1)......................................................... 1,029
Administrative fee (Note 2)......................................................... 1,129
Expense payment fee (Note 2)........................................................ 6,530
-----------
Total Liabilities ............................................................. 14,869
-----------
Net Assets for 14,656,163 shares of beneficial interest outstanding.......................... $14,654,457
===========
Net Assets Consist of:
Paid-in capital........................................................................ $14,654,457
-----------
Net Assets ............................................................................... $14,654,457
===========
Net Asset Value and Offering Price Per Share ................................................ $ 1.00
===========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the period from February 22, 1999 (commencement of operations) to June 30, 1999
<S> <C>
INVESTMENT INCOME:
Income:
Interest............................................................................ $ 108,543
----------
Expenses:
Administrative fee (Note 2)......................................................... 3,299
Expense payment fee (Note 2)........................................................ 20,208
----------
Total Expenses...................................................................... 23,507
Expense offset arrangement(Note 3)............................................. (1,745)
----------
Net Expenses ................................................................. 21,762
----------
NET INVESTMENT INCOME ....................................................................... $ 86,781
==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the period from
February 22, 1999
(commencement of
operations) to
June 30, 1999
-------------------
<S> <C>
INCREASE IN NET ASSETS:
From Investment Activities:
Net investment income................................................................ $ 86,781
Total declared as dividends to shareholders.......................................... (88,486)
-----------
Net decrease in net assets from investment activities ............................. (1,705)
-----------
From Share (Principal) Transactions at Net Asset Value of $1.00 per
share:
Shares sold ......................................................................... 32,042,736
Shares issued in reinvestment of dividends........................................... 48,744
Shares repurchased .................................................................. (17,435,318)
-----------
Net increase (decrease) in net assets resulting from share transactions ........... 14,656,162
-----------
Total increase in net assets..................................................... 14,654,457
-----------
NET ASSETS:
Beginning of period.................................................................... --
-----------
End of period ......................................................................... $14,654,457
===========
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout the period
For the period from
February 22, 1999
(commencement of
operations) to
June 30, 1999
-------------------
<S> <C>
Net asset value, beginning of period......................................................... $ 1.00
Income from investment operations:
Net investment income.................................................................. 0.01
Dividends to shareholders from net investment income................................... (0.01)
-------
Net asset value, end of period............................................................... $ 1.00
=======
Total return(1) ............................................................................. 1.03%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted).............................................. $14,654
Expenses as a percentage of average net assets(1, 2):
Total expenses paid by Fund ....................................................... 0.65%
Expense offset arrangement ........................................................ 0.05%
-------
Net expenses .................................................................... 0.70%
Ratio of net investment income to average net assets(2) ............................... 2.63%
- ----------
(1) Had the expense payment agreement not been in place, the ratio of expenses
to average net assets and total return would be as follows:
Ratio of expenses to average net assets(2) ............................. 1.23%
Total Return............................................................ 0.45%
(2) Annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies. The 59 Wall Street
Tax Exempt 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 February 22, 1999. 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, 1999, there were four 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 (the "Code")
applicable to regulated investment companies and to distribute all of its
net income to its shareholders. Accordingly, no Federal income tax
provision is required.
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 the Adviser
receives a fee from the Fund calculated daily and paid monthly at an annual rate
equivalent to 0.15% of the Fund's average daily net assets.
Administrative Fee. The Trust has an administration agreement with Brown
Brothers Harriman & Co. (the "Administrator") for which the Administrator
receives a fee from the Fund 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 period ended June 30, 1999, the Fund incurred $3,299 for
administrative services.
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
0.25% of the Fund's average daily net assets.
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
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 0.65%
of the Fund's average daily net assets. For the period ended June 30, 1999, 59
Wall Street Administrators, Inc. incurred $37,143 in expenses, including
investment advisory fees of $4,948 and shareholder servicing/eligible
institution fees of $8,246, on behalf of the Fund. The Fund's expense payment
fee agreement will terminate on December 31, 2004.
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 obligation may be affected by economic developments in a specific
state or municipality. The aggregate holdings by state ranged from 0.8% to 13.8%
of investments. At June 30, 1999, the five largest holdings by state were New
York 13.8%; Texas 11.0%; Pennsylvania 8.6%; Ohio 8.0%; and Louisiana 6.9%.
Purchases, maturities and sales of money market instruments, excluding
securities subject to repurchase agreements, aggregated $36,290,512 and
$23,155,785, respectively, for the period ended June 30, 1999. Custody fees for
the Fund were reduced by $1,745 as an offset arrangement with the Fund's
custodian.
<PAGE>
INDEPENDENT AUDITORS' REPORT
Trustees and Shareholders
The 59 Wall Street Tax Exempt 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 Tax Exempt Money
Fund (a series of The 59 Wall Street Trust) as of June 30, 1999, the related
statement of operations, the statement of changes in net assets, and the
financial highlights for the period from February 22, 1999 (commencement of
operations) to June 30, 1999. 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 audit.
We conducted our audit 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,
1999 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
audit provides 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
Tax Exempt Money Fund at June 30, 1999, and the results of its operations, the
changes in its net assets, and its financial highlights for the period from
February 22, 1999 (commencement of operations) to June 30, 1999 in conformity
with generally accepted accounting principles.
Deloitte & Touche LLP
Boston, Massachusetts
August 13, 1999
<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.
21 Milk Street
Boston, Massachusetts 02109
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 Tax Exempt Money Fund. Such offering is made only by prospectus,
which includes details as to offering price and other material information.
Tax Exempt
Money Fund
ANNUAL REPORT
June 30, 1999
