U.S. Treasury Money Fund
SEMI-ANNUAL REPORT
December 31, 1999
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1
THE 59 WALL STREET U.S. TREASURY MONEY FUND
PORTFOLIO OF INVESTMENTS
AS OF DECEMBER 31, 1999
(unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
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<S> <C>
U.S. TREASURY bills (a) (98.0%)
$40,209,000 due 01/13/00, 5.220% to 5.485% .......................... $ 40,136,634
37,760,000 due 01/31/00, 5.375% .................................... 37,768,555
38,929,000 due 03/02/00, 5.000% to 5.075% .......................... 38,597,539
14,281,000 due 03/23/00, 4.900% to 5.410% .......................... 14,106,118
9,334,000 due 05/04/00, 5.120% to 5.230% .......................... 9,168,550
1,246,000 due 05/18/00, 5.280% .................................... 1,220,781
1,110,000 due 06/01/00, 5.295% .................................... 1,085,184
11,578,000 due 06/08/00, 5.310% to 5.385% .......................... 11,305,013
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Total U.S. Treasury Bills ......................... $153,388,374
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U.S. treasury notes (1.3%)
$ 2,000,000 due 10/31/00, 4.250% .................................... 2,002,475
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Total U.S. Treasury Notes ......................... $ 2,002,475
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TOTAL INVESTMENTS, at Amortized Cost ............................... 99.3% $155,390,849
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ..................... 0.7 1,029,568
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NET ASSETS ......................................................... 100.0% $156,420,417
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</TABLE>
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(a) Rates shown are yields to maturities at time of purchase.
See Notes to Financial Statements.
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2
THE 59 WALL STREET U.S TREASURY MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
(unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at amortized cost and value (Note 1) ................ $155,390,849
Interest receivable .............................................. 863,746
Cash ............................................................. 330,755
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Total Assets ............................................. 156,585,350
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LIABILITIES:
Payables for:
Dividends declared (Note1) .................................... 11,693
Shareholder servicing/eligible institution fees (Note 2) ...... 29,817
Investment advisory fee (Note 2) .............................. 19,878
Administrative fee (Note 2) ................................... 13,252
Accrued expenses and other liabilities ........................ 90,293
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Total Liabilities ........................................ 164,933
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NET ASSETS, for 156,420,417 shares of beneficial interest outstanding $156,420,417
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Net Assets Consist of:
Paid-in capital ................................................ $156,420,417
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NET ASSET VALUE AND OFFERING PRICE PER SHARE ........................ $ 1.00
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STATEMENT OF OPERATIONS
For the six months ended December 31, 1999
(unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest ................................................... $3,855,987
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Expenses:
Shareholder servicing/eligible institution fees (Note 2) ... 181,486
Investment advisory fee (Note 2) ........................... 120,990
Administrative fee (Note 2) ................................ 80,660
Custodian fee .............................................. 50,763
Trustees' fees and expenses (Note 2) ....................... 12,161
Miscellaneous expenses ..................................... 74,827
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Total Expenses .......................................... 520,887
Expenses offset arrangement (Note 3) .................... (42)
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Net Expenses ............................................ 520,845
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Net Investment Income ............................................ $3,335,142
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</TABLE>
See Notes to Financial Statements.
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3
THE 59 WALL STREET U.S TREASURY MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
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<CAPTION>
For the six
months ended For the
December 31, 1999 year ended
(unaudited) June 30, 1999
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<S> <C> <C>
INCREASE IN NET ASSETS:
From Investment Activities:
Net investment income ..................................... $ (3,335,142) $ (8,367,354)
Total declared as dividends to shareholders ............... (3,335,142) (8,367,354)
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From Share (Principal) Transactions at Net Asset
Value of $1.00 per share:
Shares sold ............................................... 342,992,907 805,475,619
Shares issued in reinvestment of dividends ................ 1,436,490 2,879,905
Shares repurchased ........................................ (381,231,107) (809,826,979)
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Net decrease in net assets resulting
from share transactions ................................. (36,801,710) (1,471,455)
NET ASSETS:
Beginning of period ........................................... 193,222,127 194,693,582
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End of period ................................................. $156,420,417 $193,222,127
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</TABLE>
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share
outstanding throughout each period
<TABLE>
<CAPTION>
For the six
months ended
December 31, For the years ended June 30,
1999 ---------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ............ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Net investment income from operations ......... 0.02 0.04 0.05 0.04 0.04 0.05
Dividends to shareholders from net
investment income .......................... (0.02) (0.04) (0.05) (0.04) (0.04) (0.05)
-------- -------- -------- -------- -------- --------
Net asset value, end of year .................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ======== ========
Total Return .................................. 2.11% 4.15% 4.78% 4.75% 4.96% 4.67%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) .. $156,420 $193,222 $194,694 $160,458 $146,225 $144,969
Ratio of expenses to average
net assets(1) ........................... 0.60%(2) 0.62% 0.56% 0.55% 0.56% 0.55%
Ratio of net investment income to
average net assets ...................... 4.13%(2) 4.07% 4.70% 4.65% 4.78% 4.52%
</TABLE>
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(1) Had the expense reimbursement agreement, which commenced July 1, 1993, not
been in place, the ratio of expenses to average net assets for the years
ended June 30, 1996 and 1995 would have been 0.57% and 0.58%,
respectively. For the same periods, the total return of the Fund would
have been 4.91% and 4.64%, respectively. The expense reimbursement
agreement terminated on February 1, 1996.
(2) Annualized.
See Notes to Financial Statements.
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4
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 December 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. 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, 1999, 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, 1999,
the Fund incurred $120,990 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
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5
THE 59 WALL STREET U.S. TREASURY MONEY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
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 $80,660 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
0.225% of the Fund's average daily net assets. For the six months ended December
31,1999, the Fund incurred $181,486 for such services.
Board of Trustees' Fees. 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 $12,161 for these fees.
3. Investment Transactions. Purchases and maturities and sales of money
market instruments aggregated $771,410,326 and $810,354,825, respectively, for
the six months ended December 31, 1999. Custody fees for the Fund were reduced
by $42 as a result of an expense offset arrangement with the Fund's custodian.
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6
The 59 Wall Street Fund, Inc.
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
Funds. Such offering is made only by prospectus, which includes details as to
offering price and other material information.
