Tax Exempt Money Fund
ANNUAL REPORT
June 30, 2000
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 2000
<TABLE>
<CAPTION>
Principal Maturity Interest
Amount Date Rate Value
----------- -------- --------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS (101.8%)
EDUCATION (5.6%)
$3,000,000 California, School Cash Reserve Program Authority ...... 07/03/2000 4.000% $ 2,999,868
4,300,000 Montgomery County, Maryland* ........................... 07/06/2000 4.000 4,300,000
1,000,000 New Mexico State ....................................... 07/01/2000 4.250 1,000,000
500,000 Ohio State University* ................................. 12/01/2017 4.750 500,000
840,000 Tyrone, Pennsylvania, Area School District ............. 09/15/2000 4.500 841,008
-----------
TOTAL EDUCATION ........................................ $ 9,640,876
-----------
ESCROWED TO MATURITY (a) (0.2%)
$ 400,000 Maricopa County, Arizona, Pollution Control,
General Obligation ................................... 07/01/2000 6.000% $ 400,000
-----------
GENERAL OBLIGATIONS (14.0%)
$ 355,000 Alice, Texas, School District .......................... 08/15/2000 6.250% $ 361,617
500,000 Austin, Texas, School District ......................... 08/01/2000 5.100 500,384
100,000 Clark County, Las Vegas, Nevada ........................ 08/01/2000 6.300 100,204
2,300,000 District of Columbia* .................................. 06/01/2003 4.750 2,300,000
115,000 Douglas County, Nevada ................................. 09/01/2000 4.200 115,056
1,500,000 Fairfax County, Virginia ............................... 12/01/2000 4.500 1,503,642
1,000,000 Georgia State .......................................... 11/01/2000 5.000 1,003,912
300,000 Georgia State .......................................... 04/04/2001 4.000 298,451
175,000 Levittown, New York School District .................... 08/01/2000 4.900 175,166
1,000,000 Mansfield, Texas, School District ...................... 02/15/2001 5.500 1,004,177
1,000,000 Maryland State ......................................... 07/15/2000 6.700 1,000,966
680,000 Maryland State ......................................... 10/15/2000 5.000 682,296
850,000 Massachusetts State .................................... 08/01/2000 5.000 850,599
600,000 Massachusetts State .................................... 08/01/2000 6.200 600,948
2,000,000 Minnesota State ........................................ 08/01/2000 5.000 2,001,642
400,000 Minnesota State ........................................ 08/01/2000 5.200 400,202
200,000 Minnesota State ........................................ 08/01/2000 5.600 200,167
340,000 Minnesota State ........................................ 08/01/2000 6.600 340,564
1,455,000 Montgomery County, Maryland ............................ 05/01/2001 5.000 1,458,695
500,000 Muscogee County, Georgia, School District .............. 11/01/2000 4.500 501,056
200,000 New York, New York* .................................... 08/15/2018 4.750 200,000
500,000 New York, New York* .................................... 10/01/2020 4.750 500,000
900,000 New York, New York* .................................... 08/15/2021 4.750 900,000
1,300,000 New York, New York* .................................... 10/01/2022 4.750 1,300,000
1,000,000 New York, New York* .................................... 10/01/2023 4.750 1,000,000
900,000 Rhode Island State* .................................... 06/01/2018 4.750 900,000
610,000 Scarborough, Maine ..................................... 12/15/2000 5.000 611,477
725,000 South Carolina State ................................... 08/01/2000 4.500 725,100
650,000 South Carolina State ................................... 08/01/2000 5.750 651,043
275,000 Thornton, Colorado ..................................... 12/01/2000 5.400 276,184
500,000 Utah State ............................................. 07/01/2000 4.700 500,000
1,000,000 Utah State* ............................................ 07/01/2016 4.750 1,000,000
</TABLE>
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 2000 (continued)
<TABLE>
<CAPTION>
Principal Maturity Interest
Amount Date Rate Value
----------- -------- --------- ------------
<S> <C> <C> <C>
GENERAL OBLIGATIONS (CONTINUED)
$ 100,000 West Mem, Texas, Municipal Utility District ............ 03/01/2001 4.500% $ 100,094
250,000 Westchester County, New York ........................... 11/15/2000 4.600 250,581
-----------
TOTAL GENERAL OBLIGATIONS .............................. $24,314,223
-----------
HEALTH CARE (6.1%)
$ 3,000,000 Clarke County, Virginia* ............................... 01/01/2030 4.800% $ 3,000,000
900,000 Cuyahoga County, Ohio Hospital Revenue* ................ 01/01/2016 4.450 900,000
500,000 Cuyahoga County, Ohio, Hospital Revenue* ............... 01/01/2026 4.750 500,000
800,000 Kansas City, Missouri, Hospital Revenue* ............... 10/15/2014 4.750 800,000
300,000 Kansas City, Missouri, Hospital Revenue* ............... 10/15/2015 4.750 300,000
1,700,000 Kansas City, Missouri, Hospital Revenue* ............... 04/15/2015 4.750 1,700,000
560,000 Missouri State Health & Educational
Facilities Authority* ............................... 11/01/2019 4.650 560,000
700,000 North Cent, Texas, Health Facility Development Corp.* 12/01/2015 4.550 700,000
1,250,000 Washington State Health Care Facilities Authority* ..... 01/01/2029 4.750 1,250,000
800,000 Wisconsin Health & Educational Facility Authority* ..... 08/01/2029 4.900 800,000
-----------
TOTAL HEALTH CARE ...................................... $10,510,000
-----------
HOUSING (0.5%)
$ 200,000 Clayton County, Georgia Housing Authority* ............. 01/01/2021 4.800% $ 200,000
600,000 Florida Housing Finance Agency* ........................ 12/01/2008 4.850 600,000
-----------
TOTAL HOUSING .......................................... $ 800,000
-----------
INDUSTRIAL (20.0%)
$ 5,000,000 Burke County, Georgia* ................................ 07/05/2000 4.100% $ 5,000,000
600,000 Delaware County, Pennsylvania, Pollution
Control Revenue* ................................... 12/01/2009 4.500 600,000
1,100,000 East Baton Rouge, Louisiana, Pollution
Control Revenue* ................................... 03/01/2022 4.500 1,100,000
1,100,000 Forsyth, Montana Pollution Control Revenue* ........... 01/01/2018 4.750 1,100,000
900,000 Gulf Coast Waste Disposal Authority, Texas* ........... 06/01/2020 4.550 900,000
1,500,000 Illinois Pollution Control Revenue* ................... 11/01/2028 4.800 1,500,000
3,900,000 Monroe County, Georgia Pollution Control Revenue* ..... 09/01/2024 4.750 3,900,000
400,000 Monroe County, Georgia Pollution Control Revenue* ..... 07/01/2025 4.750 400,000
2,000,000 New York State, Pollution Control Revenue* ............ 06/01/2029 4.500 2,000,000
3,000,000 North Alabama Environmental Improvement Authority* .... 12/01/2000 4.800 3,000,000
2,200,000 Ohio State Air Quality Development Authority* ......... 12/01/2015 4.750 2,200,000
500,000 Putnam County, Florida, Pollution Control* ............ 09/01/2024 4.500 500,000
800,000 Putnam County, Georgia, Pollution Control
Development* ....................................... 09/01/2029 4.550 800,000
500,000 Sabine River, Texas, Pollution Control Revenue* ....... 06/01/2030 4.750 500,000
600,000 Salt Lake County, Utah, Pollution Control Revenue* .... 02/01/2008 4.550 600,000
500,000 St. Charles Parish, Louisiana, Pollution Control
Revenue* ........................................... 10/01/2025 4.550 500,000
1,500,000 Stevenson, Alabama, Environmental Improvement
Revenue* ........................................... 11/01/2016 4.450 1,500,000
</TABLE>
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 2000 (continued)
<TABLE>
<CAPTION>
Principal Maturity Interest
Amount Date Rate Value
----------- -------- --------- ------------
<S> <C> <C> <C>
INDUSTRIAL (CONTINUED)
$ 5,000,000 Valdez, Alaska* ....................................... 10/01/2025 4.550% $ 5,000,000
3,500,000 Wake County, North Carolina Pollution Control* ........ 06/15/2014 4.750 3,500,000
-----------
TOTAL INDUSTRIAL ...................................... $34,600,000
-----------
MISCELLANEOUS (3.3%)
$ 2,000,000 Dallas, Texas, Civic Center ........................... 08/15/2000 4.500% $ 2,001,497
350,000 Hamilton County, Indiana .............................. 07/10/2000 4.250 350,000
800,000 Missouri State, Infrastructure Facilities Revenue* .... 12/01/2003 4.750 800,000
200,000 Prince Georges County, Maryland ....................... 03/15/2001 5.000 200,660
1,800,000 Texas State ........................................... 08/31/2000 4.500 1,801,018
500,000 Virginia State Peninsula Ports Authority* ............. 07/01/2016 4.500 500,000
-----------
TOTAL MISCELLANEOUS ................................... $ 5,653,175
-----------
PRE-REFUNDED (a) (22.0%)
$ 1,275,000 Akron, Ohio, Bath Copley Township Hospital ............ 11/15/2000 7.250% $ 1,314,097
1,320,000 Austin, Texas, Electric Waterworks & Sewer ............ 10/01/2000 6.600 1,327,765
500,000 Austin, Texas, General Obligation ..................... 09/01/2000 6.750 502,138
1,500,000 Baltimore, Maryland, Wastewater Utilities Revenue ..... 07/01/2000 6.500 1,500,000
900,000 Bay City, Michigan, Electrical Utilities Revenue ...... 01/01/2012 6.600 927,971
600,000 Brownsville, Texas Utility Systems .................... 09/01/2000 6.875 614,699
315,000 Brownsville, Texas Utility Systems .................... 09/01/2000 6.500 322,710
1,000,000 Chesapeake Bay, Virginia, Bridge & Tunnel ............. 07/01/2001 6.375 1,038,958
1,500,000 Cypress, Fairbanks, Texas, School District,
General Obligation ................................. 08/01/2000 6.500 1,502,932
500,000 Delaware State, General Obligation .................... 04/01/2001 6.500 517,560
1,700,000 Delaware Transportation Authority System Revenue ...... 07/01/2000 6.750 1,734,000
2,000,000 Detroit, Michigan, Water Supply Systems ............... 07/01/2000 7.125 2,040,000
400,000 Florida State Department of National Resource
Preservation ....................................... 07/01/2001 6.750 416,508
500,000 Florida State, General Obligation ..................... 07/01/2000 7.375 510,000
1,000,000 Georgia State, General Obligation ..................... 02/01/2001 6.000 1,027,062
1,000,000 Jacksonville, Florida, Electric Authority Revenue ..... 10/01/2000 6.900 1,021,265
1,000,000 Jacksonville, Florida, Electric Authority Revenue ..... 10/01/2000 6.750 1,020,028
1,470,000 Kauai County, Hawaii .................................. 08/01/2000 7.500 1,488,329
200,000 Las Vegas, Nevada ..................................... 08/01/2000 7.000 204,444
300,000 Lee County, Florida, Transportation Facilities Revenue. 10/01/2000 6.500 307,826
300,000 Maryland State, General Obligation .................... 07/15/2000 6.800 306,286
1,000,000 Maryland State, General Obligation .................... 07/15/2000 6.800 1,015,859
500,000 Massachusetts State Health & Educational
Facilities Authority ............................... 07/01/2000 7.700 510,000
500,000 Massachusetts State, General Obligation ............... 06/01/2001 6.000 507,176
1,090,000 Maui County, Hawaii ................................... 12/01/2000 6.800 1,109,976
1,770,000 Metropolitan Transportation Authority, New York ....... 07/01/2000 7.500 1,805,400
</TABLE>
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 2000 (continued)
<TABLE>
<CAPTION>
Principal Maturity Interest
Amount Date Rate Value
----------- -------- --------- ------------
<S> <C> <C> <C>
PRE-REFUNDED (a)(CONTINUED)
$ 340,000 Minersville, Pennsylvania School District,
General Obligation ............................... 08/15/2000 5.150% $ 340,383
180,000 Minnesota State, General Obligation ................. 08/01/2000 7.000 180,359
1,675,000 Nevada State, General Obligation .................... 05/01/2001 6.000 1,712,403
750,000 New York State Dormitory Authority Revenue .......... 07/01/2000 7.875 765,000
1,000,000 New York State Local Government Assistance Corp. .... 04/01/2001 7.250 1,040,660
1,000,000 Newport News, Virginia, General Obligation .......... 11/01/2000 6.400 1,017,154
1,400,000 Northern Virginia, Transportation Revenue ........... 07/01/2000 7.000 1,428,000
600,000 Pima County, Arizona, School District,
General Obligation ............................... 07/01/2000 5.500 606,000
750,000 Richmond, Virginia, General Obligation .............. 01/15/2001 6.250 771,523
1,050,000 Tarrant County, Texas ............................... 03/01/2001 5.750 1,059,534
500,000 Tennessee State, General Obligation ................. 06/01/2001 6.600 516,957
750,000 University Area JT, Pennsylvania Sewer Revenue ...... 09/01/2000 7.000 760,942
1,000,000 Vicksburg, Michigan ................................. 05/01/2001 7.000 1,039,440
300,000 Washington State Public Power Supply ................ 07/01/2000 7.000 306,000
500,000 Washington State Public Power Supply ................ 07/01/2000 7.750 510,000
100,000 Washington State, General Obligation ................ 09/01/2000 6.600 100,393
250,000 Washington Suburban Sanitation District,
General Obligation ............................... 08/01/2000 6.800 255,522
45,000 West Virginia School Building Authority Revenue ..... 07/01/2000 6.000 45,000
1,000,000 West Virginia School Building Authority Revenue ..... 07/01/2000 7.250 1,020,000
-----------
TOTAL PRE-REFUNDED .................................. $38,068,259
-----------
SALES TAX (0.6%)
$ 1,000,000 New York State Local Government Assistance Corp.* ... 04/01/2025 4.400% $ 1,000,000
-----------
TRANSPORTATION (8.8%)
$ 250,000 Arizona State Transportation ........................ 07/01/2000 5.200% $ 250,000
500,000 Chicago, Illinois, O'Hare International Airport* .... 12/01/2017 4.550 500,000
400,000 Connecticut State ................................... 10/01/2000 5.500 401,231
1,000,000 Delaware Transportation Authority System Revenue .... 07/01/2000 4.500 1,000,000
1,400,000 Grapevine, Texas, Industrial Development Corp.
Revenue* ......................................... 12/01/2024 4.550 1,400,000
2,475,000 Kansas City, Missouri, Highway Revenue .............. 09/01/2000 5.000 2,477,282
500,000 Kentucky State Turnpike Authority ................... 07/01/2000 4.900 500,000
750,000 Louisiana State ..................................... 05/01/2001 7.000 763,493
3,000,000 Louisiana State* .................................... 09/01/2008 4.550 3,000,000
5,000,000 Port of Seattle, Washington* ........................ 07/05/2000 4.000 5,000,000
-----------
TOTAL TRANSPORTATION ................................ $15,292,006
-----------
</TABLE>
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 2000 (continued)
<TABLE>
<CAPTION>
Principal Maturity Interest
Amount Date Rate Value
----------- -------- --------- ------------
<S> <C> <C> <C>
UTILITIES (10.5%)
$ 200,000 Apache County, Arizona Industrial Developement
Revenue* .......................................... 12/15/2018 4.850% $ 200,000
5,000,000 Chesterfield County, Virginia* ...................... 06/01/2017 4.150 5,000,000
4,300,000 Columbia, Alabama Industrial Pollution Control* ..... 10/01/2022 4.750 4,300,000
500,000 Intermountain Power Agency, Utah* ................... 07/01/2000 6.000 500,000
4,000,000 Long Island Power Authority, New York* .............. 07/06/2000 4.000 4,000,000
600,000 Long Island Power Authority, New York* .............. 05/01/2033 4.650 600,000
1,000,000 Maricopa County, Arizona, Pollution Control* ........ 05/01/2029 4.500 1,000,000
1,000,000 Municipal Electric Authority, Georgia ............... 01/01/2001 4.750 1,002,192
1,000,000 Washington State Public Power Supply* ............... 07/01/2017 4.900 1,000,000
600,000 York County, Pennsylvania, Industrial Development
Authority* ........................................ 09/01/2020 4.900 600,000
------------
TOTAL UTILITIES ..................................... $ 18,202,192
------------
WATER/SEWER (10.2%)
$1,500,000 Boston, Massachusetts, Water & Sewer Revenue* ....... 11/01/2024 4.500% $ 1,500,000
1,000,000 Bryan, Texas, Utilities Systems Revenue ............. 07/01/2000 5.100 1,000,000
100,000 Delaware County, Pennsylvania, Industrial
Development Authority* ............................ 12/01/2018 4.900 100,000
2,800,000 Lincoln County, Wyoming, Pollution Control* ......... 11/01/2014 4.450 2,800,000
1,000,000 Lincoln County, Wyoming, Pollution Control* ......... 08/01/2015 4.550 1,000,000
1,000,000 Massachusetts State Water Resources Authority* ...... 08/01/2028 4.650 1,000,000
2,000,000 New York State Pollution Contol Authority* .......... 07/01/2015 4.750 2,000,000
2,400,000 New York, New York, Water & Sewer Revenue* .......... 06/15/2025 4.750 2,400,000
3,000,000 New York, New York, Water & Sewer Revenue* .......... 06/15/2033 4.500 3,000,000
1,600,000 Ohio State Water Development Authority Revenue* ..... 06/01/2001 4.800 1,600,000
1,300,000 Wyandotte County, Kansas City, Kansas, Government
Utilities Revenue ................................. 09/01/2000 5.000 1,302,297
------------
TOTAL WATER/SEWER ................................... $ 17,702,297
------------
TOTAL INVESTMENTS, AT AMORTIZED COST ................................................... 101.8% $176,183,028
LIABILITIES LESS CASH AND OTHER ASSETS ................................................. (1.8) (3,133,421)
----- ------------
NET ASSETS ............................................................................. 100.0% $173,049,607
===== ============
</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.
* Variable Rate Instrument. Interest rates change on specific date (such as
a coupon or interest payment date). The yield shown represents the June
30, 2000 coupon rate.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
ASSETS:
Investments, at amortized cost and value (Note 1) ....... $176,183,028
Cash .................................................... 575,405
Receivables for:
Interest .............................................. 2,008,504
------------
Total Assets ...................................... 178,766,937
------------
LIABILITIES:
Payables for:
Investments purchased ................................. 5,540,790
Dividends declared (Note 1) ........................... 17,413
Administrative fee (Note 2) ........................... 24,094
Expense payment fee (Note 2) .......................... 135,033
------------
Total Liabilities ................................. 5,717,330
------------
Net Assets for 173,049,607 shares of beneficial
interest outstanding .................................... $173,049,607
============
Net Assets Consist of:
Paid-in capital ......................................... $173,049,607
------------
Net Assets .................................................... $173,049,607
============
Net Asset Value and Offering Price Per Share .................. $1.00
====
STATEMENT OF OPERATIONS
For the year ended June 30, 2000
NET INVESTMENT INCOME (Note 1):
Income:
Interest .............................................. $3,285,461
----------
Expenses:
Administrative fee (Note 2) ........................... 84,338
Expense payment fee (Note 2) .......................... 466,056
----------
Total Expenses ........................................ 550,394
----------
NET INVESTMENT INCOME ......................................... $2,735,067
==========
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the period from
February 22, 1999
(commencement
For the year ended of operations) to
June 30, 2000 June 30, 1999
--------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS:
From Investment Activities:
Net investment income ................................... $ 2,735,067 $ 86,781
Total declared as dividends to shareholders ............. (2,733,362) (88,486)
------------- -------------
Net increase (decrease) in net assets from investment
activities .......................................... 1,705 (1,705)
------------- -------------
From Share (Principal) Transactions at Net Asset Value of
$1.00 per share:
Shares sold ............................................. 466,850,688 32,042,736
Shares issued in reinvestment of dividends .............. 1,995,473 48,744
Shares repurchased ...................................... (310,452,716) (17,435,318)
------------- -------------
Net increase in net assets resulting from share
transactions .................................... 158,393,445 14,656,162
------------- -------------
Total increase in net assets .................. 158,395,150 14,654,457
NET ASSETS:
Beginning of period ....................................... 14,654,457 --
------------- -------------
End of period ............................................. $ 173,049,607 $ 14,654,457
============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET TAX EXEMPT MONEY FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for
a share outstanding throughout each period
<TABLE>
<CAPTION>
For the period from
February 22, 1999
(commencement
For the year ended of operations) to
June 30, 2000 June 30, 1999
------------ ------------
<S> <C> <C>
Net asset value, beginning of period ................................ $ 1.00 $ 1.00
Income from investment operations:
Net investment income ......................................... 0.03 0.01
Dividends to shareholders from net investment income ................ (0.03) (0.01)
-------- -------
Net asset value, end of period ..................................... $ 1.00 $ 1.00
======== =======
Total return(1) ..................................................... 3.05% 1.03%
Ratios/ Supplemental Data:
Net assets, end of period (000's omitted) .................... $173,050 $14,654
Expenses as a percentage of average net assets(1): ............ 0.65% 0.65%(2)
Ratio of net investment income to average net assets .......... 3.24% 2.63%(2)
----------
(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:
Expenses paid by the Fund .................................. 0.62% 1.23%(2)
Expense offset arrangement ................................. 0.03% 0.05%(2)
-------- -------
Total Expenses ............................................. 0.65% 1.28%(2)
======== =======
</TABLE>
(2) Annualized.
See Notes to Financial Statements.
<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, 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 (the "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.
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 year ended June 30, 2000, the Fund incurred $84,338 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 year ended June 30, 2000, 59
Wall Street Administrators, Inc. incurred $438,474 in expenses, including
investment advisory fees of $126,507 and shareholder servicing/eligible
institution fees of $210,845, on behalf of the Fund. The Fund's expense payment
fee agreement will terminate on December 31, 2004.
Effective July 1, 2000, the Fund entered into a custody agreement with
Brown Brothers Harriman & Co.
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 0.2% to 13.0%
of investments. At June 30, 2000, the five largest holdings by state were New
York 13.0%; Texas 8.9%; Virginia 8.1%; Georgia 8.0% and Maryland 5.9%.
Purchases, maturities and sales of money market instruments, excluding
securities subject to repurchase agreements, aggregated $482,819,652 and
$319,420,200, respectively, for the year ended June 30, 2000. Custody fees for
the Fund were reduced by $25,358 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) (the "Fund") as of June 30, 2000,
the related statement of operations for the year then ended, the statement of
changes in net assets, and the financial highlights for the year then ended and
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 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
Tax Exempt 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 Tax Exempt Money Fund. Such offering is made only by prospectus,
which includes details as to offering price and other material information.
