Tax Free
Short/Intermediate
Fixed Income Fund
SEMI-ANNUAL REPORT
December 31, 1999
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
(unaudited)
<TABLE>
<CAPTION>
Principal Maturity Interest
Amount Date Rate Value
---------- -------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS (97.6%)
ESCROWED TO MATURITY (a) (6.4%)
$ 500,000 Chicago,Illinois ........................................ 01/01/03 6.500% $ 525,195
1,000,000 Honolulu, Hawaii, City & County ......................... 11/01/03 5.250 1,018,670
1,570,000 Mashantucket Western Pequot Tribe, Connecticut .......... 09/01/03 6.250 1,646,114
1,000,000 Milwaukee, Wisconsin, Sewer Revenue, Series A ........... 10/01/02 6.700 1,051,460
-----------
TOTAL ESCROWED TO MATURITY (a) ........................ $ 4,241,439
-----------
GENERAL OBLIGATIONS (18.8%)
$1,000,000 Denver, Colorado, City and County ....................... 08/01/03 5.000% $ 1,010,730
400,000 District of Columbia* ................................... 06/01/03 4.500 400,000
350,000 Du Page County, Illinois ................................ 01/01/03 5.000 352,905
1,000,000 El Paso, Texas .......................................... 08/15/01 7.000 1,039,220
1,000,000 Hawaii State ............................................ 11/01/01 5.850 1,021,720
1,000,000 Honolulu, Hawaii, City & County ......................... 07/01/02 7.250 1,058,600
1,000,000 Massachusetts State ..................................... 11/01/01 5.500 1,018,280
1,000,000 Mississippi State ....................................... 06/01/03 5.000 1,009,740
1,000,000 Pittsburgh, Pennsylvania ................................ 03/01/03 5.000 1,008,290
1,075,000 Round Rock, Texas, Independent School District .......... 08/01/01 7.000 1,115,570
2,000,000 San Antonio, Texas ...................................... 08/01/02 8.000 2,159,680
1,000,000 Tennessee State ......................................... 05/01/03 5.500 1,027,860
275,000 Washington State ........................................ 01/01/01 6.500 281,185
-----------
TOTAL GENERAL OBLIGATIONS ............................. $12,503,780
-----------
MISCELLANEOUS (3.2%)
$ 500,000 Chicago, Illinois, Public Building Community ............ 02/01/02 5.000% $ 503,020
1,390,000 Ohio State Building Authority, Arts Facilities .......... 10/01/02 5.000 1,403,580
225,000 Ohio State Building Authority, Correctional Facility,
Series A .............................................. 10/01/03 5.000 227,356
-----------
TOTAL MISCELLANEOUS ................................... $ 2,133,956
-----------
PRE-REFUNDED (a) (54.6%)
$ 900,000 Arizona State ........................................... 07/01/02 7.000% $ 957,843
500,000 Arizona State Transportation ............................ 07/01/01 6.350 520,510
515,000 Augusta, Georgia, Water and Sewer ....................... 05/01/02 6.500 544,613
200,000 Berkeley County, South Carolina, Water & Sewer .......... 06/01/01 7.000 210,676
250,000 Bucks County, Pennsylvania, Water and Sewer Authority ... 12/01/02 6.750 264,223
1,000,000 Burke County, Georgia, Development
Authority Pollution Control ........................... 01/01/03 7.700 1,109,730
275,000 Cache County, Utah, School District ..................... 06/15/03 5.900 287,532
1,000,000 Charlotte, North Carolina ............................... 02/01/04 5.800 1,055,060
1,000,000 Chicago, Illinois ....................................... 07/01/02 6.850 1,064,540
500,000 Chicago, Illinois Center Public Library ................. 07/01/02 6.850 532,270
1,500,000 Connecticut State ....................................... 08/15/04 5.900 1,581,795
</TABLE>
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
(unaudited)
<TABLE>
<CAPTION>
Principal Maturity Interest
Amount Date Rate Value
---------- -------- -------- -----------
<S> <C> <C> <C>
PRE-REFUNDED (continued)
$1,500,000 Delaware County, Pennsylvania ........................... 11/15/02 6.000% $ 1,552,545
465,000 Delaware Transportation Authority System ................ 07/01/01 6.000 475,007
1,500,000 Denver, Colorado, City and County ....................... 11/15/02 7.500 1,639,455
1,000,000 Harris County, Texas .................................... 10/01/02 5.750 1,027,490
365,000 Harrisburg, Pennsylvania, City & County ................. 09/01/03 5.875 383,589
900,000 Hawaii State, General Obligation ........................ 11/01/01 6.000 930,771
2,100,000 Illinois Health Facilities Authority .................... 05/01/02 7.250 2,245,509
415,000 Illinois State Sales Tax ................................ 06/15/01 6.000 423,698
1,007,000 Indiana Transportation Finance Authority ................ 11/01/02 6.250 1,066,916
1,000,000 Indianapolis, Indiana, Public Improvement ............... 01/01/02 6.700 1,057,760
600,000 Kentucky State Property & Building Commission ........... 08/01/01 6.500 629,388
500,000 Kentucky State Property & Building Commission ........... 02/01/01 6.875 523,365
500,000 Maryland State Health Facilities Authority .............. 07/01/01 6.750 525,570
500,000 Mesa, Arizona ........................................... 07/01/03 5.700 522,505
230,000 Middlesex County, New Jersey, Utilities Authority Sewer . 03/15/01 6.500 240,120
1,000,000 Nebraska Public Power District .......................... 01/01/03 6.125 1,058,000
1,550,000 Nebraska Public Power District .......................... 01/01/03 5.700 1,622,090
1,705,000 Nevada State ............................................ 10/01/02 6.250 1,787,744
400,000 New York State Dormitory Authority ...................... 05/15/02 6.750 426,272
165,000 New York State Local Government Assistance Corp. ........ 04/01/01 7.250 173,747
140,000 New York State Medical Care Facilities Finance Agency ... 02/15/01 7.500 147,501
1,400,000 Phoenix, Arizona, Civic Improvement Waste and Water ..... 07/01/03 6.125 1,487,500
500,000 Price Elliot Resh Park, Arizona ......................... 07/01/01 7.000 527,440
305,000 Rhode Island, Convention Center Authority ............... 05/15/01 6.700 319,701
625,000 Seattle, Washington, Sewer Systems ...................... 01/01/03 6.300 663,731
1,200,000 St. Louis, Missouri ..................................... 02/01/02 6.250 1,238,928
1,000,000 Tucson, Arizona, Street & Highway ....................... 07/01/00 6.875 1,023,570
755,000 University of Pittsburgh, Pennsylvania .................. 06/01/02 6.125 793,958
2,000,000 Washington State, General Obligation .................... 02/01/02 6.375 2,084,900
400,000 Washington Suburban Sanitation District, Maryland ....... 06/01/01 6.900 420,716
500,000 Wisconsin State ......................................... 05/01/02 6.000 514,980
555,000 Wisconsin State ......................................... 05/01/02 6.300 575,269
-----------
TOTAL PRE-REFUNDED (a) ................................ $36,238,527
-----------
SALES TAX (4.8%)
$1,110,000 Municipal Assistance Corp., New York .................... 07/01/03 5.250% $ 1,129,136
2,000,000 Municipal Assistance Corp., New York .................... 07/01/02 5.000 2,018,220
-----------
TOTAL SALES TAX ....................................... $ 3,147,356
-----------
</TABLE>
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
(unaudited)
<TABLE>
<CAPTION>
Principal Maturity Interest
Amount Date Rate Value
---------- -------- -------- -----------
<S> <C> <C> <C>
TRANSPORTATION (1.5%)
$1,000,000 Illinois State Toll Highway ............................. 01/01/04 5.000% $ 1,003,590
-----------
UTILITIES (5.3%)
$ 740,000 Long Island Power Authority, New York ................... 12/01/02 5.250% 747,570
700,000 Memphis, Tennessee Electric Systems ..................... 01/01/04 5.900 728,707
1,000,000 Washington State Public Power Supply .................... 07/01/01 7.625 1,043,220
1,000,000 Washington State Public Power Supply .................... 07/01/02 5.000 1,005,830
-----------
TOTAL UTILITIES ....................................... $ 3,525,327
-----------
WATER/SEWER (3.0%)
$1,000,000 Dearborn, Michigan, Sewer Disposal System ............... 04/01/03 6.500% $ 1,053,580
500,000 Houston, Texas, Water & Sewer Systems ................... 12/01/01 5.600 508,885
275,000 Massachusetts State Water Resources Authority ........... 12/01/01 6.300 283,767
150,000 Ocean County, New Jersey, Utilities Authority ........... 01/01/01 6.125 152,822
-----------
TOTAL WATER/SEWER ....................................... 1,999,054
-----------
TOTAL MUNICIPAL BONDS ................................... $64,793,029
-----------
TOTAL INVESTMENTS, (identified cost $65,633,677) (b) ................... 97.6% $64,793,029
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ......................... 2.4 1,598,420
----- -----------
NET ASSETS ............................................................. 100.0% $66,391,449
===== ===========
</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 originally stated maturity date.
(b) The aggregate cost for federal income tax purposes is $65,633,677. The
aggregate gross unrealized appreciation is $11,844, and the aggregate
gross unrealized depreciation is $852,492 resulting in net unrealized
depreciation of $840,648.
* Variable Rate Instrument. Interest rates change on specific date (such as
a coupon or interest payment date). The yield shown represents the
December 31, 1999 coupon rate.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
(unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $65,633,677) (Note 1) ....... $64,793,029
Cash ............................................................................. 664,664
Interest Receivable .............................................................. 1,294,629
-----------
Total Assets ............................................................... $66,752,322
-----------
LIABILITIES:
Payables for:
Dividends Declared ............................................................. 198,662
Fund shares repurchased ........................................................ 102,200
Investment advisory fee (Note 2) ............................................... 15,048
Administrative fee (Note 2) .................................................... 9,030
Shareholder servicing/eligible institution fee (Note 2) ........................ 15,048
Accrued expenses and other liabilities ......................................... 20,885
-----------
Total Liabilities .......................................................... 360,873
-----------
Net Assets ......................................................................... $66,391,449
===========
Net Assets Consist of:
Paid-in capital .................................................................. $67,340,413
Accumulated net realized loss on investments ..................................... (108,316)
Net unrealized depreciation on investments ....................................... (840,648)
-----------
Net Assets ......................................................................... $66,391,449
===========
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($66,391,449 / 6,498,484 shares) ................................................. $10.22
======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENT OF OPERATIONS
For the six months ended December 31, 1999
(unaudited)
INVESTMENT INCOME:
Income:
Interest ................................................. $1,508,215
----------
Expenses:
Investment advisory fee (Note 2) ......................... 90,579
Shareholder servicing/eligible institution fees (Note 2).. 90,579
Administrative fee (Note 2) .............................. 54,348
Professional fees ........................................ 9,205
Custodian fee ............................................ 31,574
Trustees fees and expenses (Note 2) ...................... 5,979
Miscellaneous expenses ................................... 46,581
----------
Total Expenses ........................................... 328,845
Expense offset arrangement (Note 3) .................... (14,676)
----------
Net Expenses ........................................... 314,169
----------
Net Investment Income .................................. 1,194,046
==========
NET REALIZED AND UNREALIZED GAIN/LOSS (Notes 1 and 3):
Net realized gain on investments ........................... 19,859
Net change in unrealized depreciation on investments ....... (616,565)
----------
Net Realized and Unrealized Loss .................... (596,706)
----------
Net Increase in Net Assets Resulting from Operations ....... $ 597,340
==========
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
six months ended For the
December 31, 1999 year ended
(unaudited) June 30, 1999
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ...................................... $ 1,194,046 $ 3,072,518
Net realized gain on investments ........................... 19,859 111,710
Net change in unrealized appreciation (depreciation)
on investments ........................................... (616,565) (778,100)
------------ ------------
Net increase in net assets resulting from operations ....... 597,340 2,406,128
------------ ------------
Dividends declared from net investment income ................ (1,194,046) (3,080,799)
Shares of beneficial interest transactions (Note 4):
Net proceeds from sales of shares of beneficial interest ... 11,829,365 70,953,619
Net asset value of shares of beneficial interest issued to
shareholders in reinvestment of dividends ................ 464,493 1,100,833
Net cost of shares of beneficial interest repurchased ...... (21,024,333) (75,820,694)
------------ ------------
Net decrease in net assets resulting from
shares of beneficial interest transactions ............. (8,730,475) (3,766,242)
------------ ------------
Total decrease in net assets ........................... (9,327,181) (4,440,913)
NET ASSETS:
Beginning of period .......................................... 75,718,630 80,159,543
------------ ------------
End of period ................................................ $ 66,391,449 $ 75,718,630
============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
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, 1999 -------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
----------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.30 $ 10.40 $ 10.33 $ 10.26 $ 10.28 $ 10.11
Income from investment operations:
Net investment income ............ 0.17 0.35 0.36 0.37 0.37 0.37
Net realized and unrealized
gain (loss) on investments ..... (0.08) (0.10) 0.07 0.07 (0.02) 0.17
Less dividends and distributions:
Dividends to shareholders from net
investment income .............. (0.17) (0.35) (0.36) (0.37) (0.37) (0.37)
------- ------- ------- ------- ------- -------
Net asset value, end of period ...... $ 10.22 $ 10.30 $ 10.40 $ 10.33 $ 10.26 $ 10.28
======= ======= ======= ======= ======= =======
Total return ........................ 0.88% 2.44% 4.25% 4.34% 3.60% 5.42%
Ratios/Supplemental Data:
Net assets, end of period
(000's omitted) ................ $66,391 $75,719 $80,160 $55,714 $44,776 $51,828
Ratio of expenses to average
net assets (Note 2):
Total expenses paid by Fund ...... 0.87%(2) 0.82% 0.78% 0.70%(1) 0.70%(1) 0.70%(1)
Expense offset arrangement ....... 0.04%(2) 0.01% 0.02% n/a n/a n/a
------- ------- ------- ------- ------- -------
Net expenses .................. 0.91%(2) 0.83% 0.80% 0.70% 0.70% 0.70%
Ratio of net investment income
to average net assets ......... 3.30%(2) 3.37% 3.49% 3.55% 3.51% 3.67%
Portfolio turnover rate .......... 14% 44% 20% 48% 48% 39%
</TABLE>
- ----------
(1) Had the expense payment agreement not been in place, the ratio of expenses
to average net assets for the years ended June 30, 1997, 1996 and 1995,
would have been 0.96%, 0.90% and 0.99%, respectively. For the same
periods, the total return of the Fund would have been 4.16%, 3.40% and
5.13%, respectively. The expense payment agreement terminated on July 1,
1997.
(2) Annualized.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Significant Accounting Policies. The 59 Wall Street
Tax Free Short/Intermediate Fixed Income 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 July 23, 1992. 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. Decmeber 31, 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. Bonds and other fixed income securities
(other than short-term obligations but including listed issues) are valued
on the basis of valuations furnished by a pricing service, use of which
has been approved by the Board of Trustees. In making such valuations, the
pricing service utilizes both dealer-supplied valuations and electronic
data processing techniques which take into account appropriate factors
such as institutional-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, trading characteristics and
other market data, without exclusive reliance upon quoted prices or
exchange or over-the-counter prices, since such valuations are believed to
reflect more accurately the fair value of such securities.
Securities or other assets for which market quotations are not
readily available are valued at fair value in accordance with procedures
established by and under the general supervision and responsibility of the
Trustees. Such procedures include the use of independent pricing services,
which use prices based upon yields or prices of securities of comparable
quality, coupon, maturity and type; indications as to the value from
dealers; and general market conditions. Short-term investments which
mature in 60 days or less are valued at amortized cost if their original
maturity was 60 days or less, or by amortizing their value on the 61st day
prior to maturity, if their original maturity when acquired by the Fund
was more than 60 days, unless this is determined not to represent fair
value by the Trustees.
B. Accounting for Investments. Investment transactions are accounted
for on the trade date. Realized gains and losses, if any, from investment
transactions are determined on the basis of identified cost. Interest
income is accrued daily and consists of interest accrued, discount earned
(including both original issue and market discount) and premium
amortization on the investments of the Fund.
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 to Shareholders. Dividends to
shareholders from net investment income are declared daily and paid
monthly. Distributions from net capital gains, if any, are paid annually
and are recorded on the ex-dividend date. Distributions paid by the Fund
from net interest received on tax-exempt bonds are not includable by
shareholders as gross income for Federal income tax purposes because the
Fund intends to meet certain requirements of the Code applicable to
regulated investment companies which will enable the Fund to pay
tax-exempt interest dividends.
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 0.25% of the Fund's average daily net assets. For the six months
ended December 31, 1999, the Fund incurred $90,579 for advisory services.
<PAGE>
THE 59 WALL STREET TAX FREE SHORT/INTERMEDIATE FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
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 0.15% 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, 1999, the Fund incurred
$54,348 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 average daily net assets of the Fund. For the six months ended
December 31, 1999, the Fund incurred $90,579 for shareholder servicing/eligible
institution services.
Trustees' Fees and Expenses. Each Trustee receives an annual fee as well
as reimbursement for reasonable out-of-pocket expenses from the Fund. For the
six months ended December 31, 1999, the Fund incurred $5,979 for these fees.
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 0.3% to 10.3%
of investments. At December 31, 1999, the five largest holdings by state were
Illinois 10.3%; Texas 9.0%; Washington 7.8%; Arizona 7.8%; and New York 7.2%.
For the six months ended December 31, 1999, the cost of purchases and the
proceeds of sales of investment securities other than short-term investments
were $9,841,470 and $13,404,617, respectively. Custody fees for the Fund were
reduced by $14,676 as an offset arrangement with the Fund's custodian.
4. Shares of Beneficial Interest. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
For the For the
six months ended year ended
December 31, 1999 June 30, 1999
----------------- -------------
<S> <C> <C>
Shares of beneficial interest sold ................. 6,498,484 6,798,407
Shares of beneficial interest issued in connection
with reinvestment of dividends .................... 45,216 105,396
Shares of beneficial interest repurchased .......... (2,046,943) (7,265,083)
--------- ---------
Net increase (decrease) ............................ (850,856) (361,280)
========= =========
</TABLE>
5. Federal Income Tax Status. At June 30, 1999, the Fund had a net capital
loss carryover of approximately $128,000, which is available through June 30,
2004, to offset future capital gains to the extent provided by regulations. To
the extent that this net capital loss carryover is used to offset future capital
gains, it is probable that the gains so offset will not be distributed to
shareholders since any such distributions may be taxable to shareholders as
ordinary income.
<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 Free Short/Intermediate Fixed Income Fund. Such offering is
made only by prospectus, which includes details as to offering price and other
material information.
Tax Free
Short/Intermediate
Fixed Income Report
SEMI-ANNUAL REPORT
December 31, 1999
