U.S. Treasury Money Fund
ANNUAL REPORT
June 30, 2000
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
PORTFOLIO OF INVESTMENTS
as of June 30, 2000
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
----------- ------------
<S> <C> <C>
U.S. TREASURY BILLS (a) (98.0%)
$ 2,740,000 due 07/27/00, 5.700% ............................... $ 2,728,720
20,675,000 due 07/31/00, 5.375% ............................... 20,664,523
47,792,000 due 08/10/00, 5.400% to 5.960% ..................... 47,494,428
22,158,000 due 08/17/00, 5.550% to 6.020% ..................... 21,985,442
2,382,000 due 08/24/00, 5.760% to 5.830%. .................... 2,361,382
9,450,000 due 08/31/00, 5.125% ............................... 9,435,492
22,421,000 due 09/07/00, 5.570% to 5.735%. .................... 22,180,997
370,000 due 09/28/00, 5.650% ............................... 364,832
4,577,000 due 10/12/00, 5.680% to 5.715% ..................... 4,502,273
------------
TOTAL U.S. TREASURY BILLS .................... $131,718,089
------------
U.S. TREASURY NOTES (1.5%)
$ 2,000,000 due 10/31/00, 5.750% ............................... $ 2,000,993
-----------
TOTAL U.S. TREASURY NOTES .................... $ 2,000,993
------------
TOTAL INVESTMENTS, AT AMORTIZED COST ..................... 99.5% $133,719,082
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........... 0.5% 705,762
----- ------------
NET ASSETS ............................................... 100.0% $134,424,844
===== ============
</TABLE>
----------
(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
June 30, 2000
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at amortized cost and value (Note 1) ............................... $ 133,719,082
Interest receivable ............................................................. 645,303
Cash ............................................................................ 262,521
-------------
Total Assets ............................................................ 134,626,906
-------------
LIABILITIES:
Payables for:
Dividends declared (Note 1) ................................................... 29,906
Shareholder servicing/eligible institution fees (Note 2) ...................... 62,489
Investment advisory fee (Note 2) .............................................. 41,659
Administrative fee (Note 2) ................................................... 27,773
Accrued expenses and other liabilities ........................................ 40,235
-------------
Total Liabilities ....................................................... 202,062
-------------
NET ASSETS, for 134,424,844 shares of beneficial interest outstanding ................. $ 134,424,844
=============
Net Assets Consist of:
Paid-in capital ................................................................. $ 134,424,844
=============
NET ASSET VALUE AND OFFERING PRICE PER SHARE .......................................... $1.00
=====
<CAPTION>
STATEMENT OF OPERATIONS
For the year ended June 30, 2000
<S> <C>
NET INVESTMENT INCOME:
Income:
Interest ..................................................................... $ 8,862,097
-------------
Expenses:
Shareholder servicing/eligible institution fees (Note 2) ........................ 380,391
Investment advisory fee (Note 2) ................................................ 253,594
Administrative fee (Note 2) ..................................................... 169,063
Custodian fee ................................................................... 80,815
Trustees' fees and expenses (Note 2) ............................................ 16,142
Miscellaneous expenses .......................................................... 61,749
-------------
Total Expenses .................................................................. 961,754
Expense offset arrangement (Note 3) ..................................... (2,149)
-------------
Net Expenses ........................................................... 959,605
-------------
Net Investment Income ................................................................. $ 7,902,492
=============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. TREASURY MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the years ended June 30,
-----------------------------------
2000 1999
------------- -------------
<S> <C> <C>
INCREASE IN NET ASSETS:
>From Investment Activities:
Net investment income ............................................................ $ 7,902,492 $ 8,367,354
Total declared as dividends to shareholders ...................................... (7,902,492) (8,367,354)
------------- -------------
>From Share (Principal) Transactions at Net Asset Value of $1.00 per share:
Shares sold ...................................................................... 781,576,481 805,475,619
Shares issued in reinvestment of dividends ....................................... 3,128,851 2,879,905
Shares repurchased ............................................................... (843,502,615) (809,826,979)
------------- -------------
Net decrease in net assets resulting from share transactions ................... (58,797,283) (1,471,455)
NET ASSETS:
Beginning of year ................................................................ 193,222,127 194,693,582
------------- -------------
End of year ...................................................................... $ 134,424,844 $ 193,222,127
============= =============
</TABLE>
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout each year
<TABLE>
<CAPTION>
For the years ended June 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................. $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income ............................ 0.05 0.04 0.05 0.04 0.04
Dividends to shareholders from net
investment income ................................ (0.05) (0.04) (0.05) (0.04) (0.04)
----- ----- ----- ----- -----
Net asset value, end of year ....................... $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Total return(1) .................................... 4.75% 4.15% 4.78% 4.75% 4.96%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) ........ $134,425 $193,222 $194,694 $160,458 $146,225
Ratio of expenses to average net assets(1) ....... 0.57% 0.62% 0.56% 0.55% 0.56%
Ratio of net investment income to
average net assets(1) .......................... 4.68% 4.07% 4.70% 4.65% 4.78%
</TABLE>
----------
(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 year
ended June 30, 1996 would have been 0.57%. For the same period, the total
return of the Fund would have been 4.91%. The expense reimbursement
agreement terminated on February 1, 1996.
See Notes to Financial Statements.
<PAGE>
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, 2000, there were four series
of the Trust.
The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America, 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, 2000, 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 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. For the year ended
June 30, 2000, the Fund incurred $253,594 for advisory services.
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 year ended June 30, 2000, the Fund incurred $169,063 for
administrative services.
<PAGE>
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, 2000,
the Fund incurred $380,391 for shareholder servicing/eligible institution
services.
Trustees' Fees and Expenses. Each Trustee of the Fund receives an annual
retainer paid by the Fund. Each Trustee is also reimbursed for out-of-pocket
expenses incurred in connection with board meetings. For the year ended June 30,
2000, the Fund incurred $16,142 for Trustees' fees and expenses.
Effective July 1, 2000, the Fund entered into a custody agreement with
Brown Brothers Harriman & Co.
3. Investment Transactions. Purchases and maturities and sales of money
market instruments aggregated $1,410,371,343 and $1,475,386,667, respectively,
for the year ended June 30, 2000. Custody fees for the Fund were reduced by
$2,149 as a result for 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) (the "Fund") as of June 30,
2000, the related statement of operations for the year then ended, the statement
of changes in net assets for the years ended June 30, 2000 and 1999, and the
financial highlights for each of the years in the five-year period ended June
30, 2000. 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 auditing standards generally
accepted in the United States of America. 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, 2000, 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, 2000, the results of its operations, the
changes in its net assets, and its financial highlights for the respective
stated periods in conformity with accounting principles generally accepted in
the United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
August 18, 2000
<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 U.S. Treasury Money Fund. Such offering is made only by
prospectus, which includes details as to offering price and other material
information.
