USAA INVESTMENT TRUST
N-30D, 1995-07-27
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                            Table of Contents
USAA Family of Funds                                       1
Message from the President                                 2
Investment Review                                          4
Message from the Manager                                   5
Financial Information:
     Independent Auditors' Report                          7
     Statement of Assets and Liabilities                   8
     Portfolio o f Investments in Securities               9
     Notes to Portfolio of Investments                    11
     Statement of Operations                              12
     Statements of Changes in Net Assets                  13
     Notes to Financial Statements                        14

                         Important Information:

Through our ongoing efforts to reduce expenses and respond to shareholder
requests, your annual and semiannual report mailings are now "streamlined."
One copy of each report will be sent to each address, instead of our
previous practice of sending one report to every registered owner. For many
shareholders and their families, this eliminates duplicate copies, saving
paper and postage costs to the Fund.

If you are the primary shareholder on at least one account, prefer not to
participate in streamlining, and would like to continue receiving one
report per registered account owner, you may request this in writing to:

          USAA Investment Management Company
          Attn: Report Mail
          9800 Fredericksburg Road
          San Antonio, TX 78284-8916

or phone a Mutual Fund Representative at 1-800-531-8448 during business hours.

This report is for the information of the shareholders and others who have
received a copy of the currently effective prospectus of the USAA Treasury
Money Market Trust, managed by USAA Investment Management Company (IMCO).
It may be used as sales literature only when preceded or accompanied by a
current prospectus which gives further details about the fund.

USAA with the eagle is registered in the U.S. Patent & Trademark Office.
(copyright)1995, USAA. All rights reserved.


USAA Family of Funds Performance Summary

If you own only one or two USAA funds, you may not be aware of the
performance of our other funds. This summary is a snapshot of the
performance of all 29 funds by investment objective as of June 30, 1995. If
you're interested in more information, please call us at 1-800-531-1087 for
a prospectus. Please read the prospectus carefully before investing.
<TABLE>
<CAPTION>

                                                       Average Annual Total Return**
     Investment               Inception                                  Since     7-Day     30-Day***
     Objective                  Date        1 yr     5 yrs   10 yrs    Inception    Simple    SEC
Capital Appreciation                          %        %        %           %          %        %
<S>                            <C>         <C>      <C>       <C>       <C>        <C>       <C>
Aggressive Growth              10/19/81    39.72    11.12     9.78           -         -         -
Emerging Markets                11/7/94        -        -        -       (0.50)        -         -
Gold                            8/15/84     6.88     4.66     2.86           -         -         -
Growth                           4/5/71    26.34    12.37    11.75           -         -         -    
Growth & Income                  6/1/93    21.19        -        -       10.49         -         -
International                   7/11/88     4.23     7.89        -        9.33         -         -   
World Growth                    10/1/92     7.88        -        -       11.71         -         -

Diversified/Balanced                                                        
Balanced Portfolio              1/11/89    11.09     8.59        -        8.93         -       4.06
Cornerstone                     8/15/84     9.25     9.24    12.00           -         -          -

Income - Taxable                                                            
GNMA                             2/1/91    11.00        -        -        8.08         -       6.79
Income                           3/4/74    15.07    10.00    10.04           -         -       6.87
Income Stock                     5/4/87    19.52    12.26        -       11.44         -          -
Short-Term Bond                  6/1/93     8.40        -        -        4.83         -       6.77

Income - Tax Exempt
Long-Term                       3/19/82     7.28     7.66     8.60           -         -       5.79
Intermediate-Term               3/19/82     7.60     7.71     7.82           -         -       5.22 
Short-Term                      3/19/82     5.23     5.52     5.76           -         -       4.36
California Bond*                 8/1/89     8.96     7.66        -        7.23         -       5.79
Florida Tax-Free Income*        10/1/93     7.82        -        -        0.09         -       5.71
New York Bond*                 10/15/90     7.36        -        -        8.65         -       5.60
Texas Tax-Free Income*           8/1/94        -        -        -        8.40         -       5.63
Virginia Bond*                 10/15/90     8.79        -        -        8.31         -       5.78

Money Market                                                                
Money Market                     2/2/81     5.33     4.76     6.06           -      5.75          -
Tax Exempt Money Market          2/6/84     3.34     3.57     4.45           -      3.82          -
Treasury Money Market Trust      2/1/91     5.06        -        -        4.01      5.69          -
California Money Market*         8/1/89     3.31     3.36        -        3.71      3.74          -    
Florida Tax-Free Money Market*  10/1/93     3.23        -        -        2.72      3.74          -
New York Money Market*         10/15/90     3.15        -        -        2.98      3.69          -
Texas Tax-Free Money Market*     8/1/94        -        -        -        3.06      3.72          -
Virginia Money Market*         10/15/90     3.25        -        -        3.18      3.61          -

</TABLE>
* Shares of the state funds are authorized for sale only to residents of
the states listed above.

** Total return equals income yield plus share price change and assumes
reinvestment of all dividends and capital gain distributions. No adjustment
has been made for taxes payable by shareholders on their reinvested
dividends and capital gain distributions. The performance data quoted
represents past performance and is not an indication of future results.
Investment return and principal value of an investment will fluctuate, and
an investor's shares, when redeemed, may be worth more or less than their
original cost.

An investment in any money market fund is neither insured nor guaranteed by
the U.S. government and there is no assurance that any of the funds will
maintain a stable net asset value of $1 per share.

Some tax-exempt income may be subject to state or local taxes or the
federal alternative minimum tax.

Foreign investing is subject to additional risks, which are discussed in
the funds' prospectuses.

*** Calculated as prescribed by the Securities and Exchange Commission.

Message from the President

[Photo of Michael J.C. Roth, President appears here]

Most of these messages look back at events. This one looks forward.

On January 29, 1995, my wife and I became grandparents. Karl Joseph Marbach
was born to Alexandra, my wife's daughter, and her husband Keith Marbach. 
When my wife learned of the name Alexandra and Keith had chosen, 
she smiled. She noted that my middle names are Joseph Carl, and she said,
"I think this kid's college education is secure." 

"Secure" may be an exaggeration, but I did decide to practice one thing I 
have preached for many years. I told Alexandra to get the little fellow a
social security number, and as soon as she furnished that to me, (well, 
almost as soon), I opened an InveStart (registered trademark) account for
Karl Joseph. This account, in the USAA Income Stock Fund, was opened for 
$100, and will have $50 per month added to it by an electronic funds 
transfer from my checking account. 

InveStart is a program that we have offered for many years. For now it is
available for use with the Income Stock Fund, Cornerstone Fund and Money Market
Fund.(1) That lineup will soon expand. We originally intended it for young USAA
members as a good way to start investing. We found, however, that many 
grandparents were using it as I just did.

The effect for Karl Joseph can be quite powerful. It is well documented
that the stock market, as measured by the S&P 500 stock index has produced
a total return of 10% for the last 18 years ended May 31, 1995 (Source: Lipper
Analytical Services, Inc.). 

The chart on the next page shows the growth of an account with a $100
initial investment and $50 subsequent monthly investments for 18 years at
an 8% return - a hypothetical figure based upon and more conservative than
historical results. It is for illustrative purposes only and should not be
considered an indication of fund performance by any of the USAA Family of 
Funds. 

[A graph is shown here which shows the growth of an account with a $100 initial
investment and $50 subsequent monthly investments for 18 years at an 8% return
- - a hypothetical figure based upon amd more conservative than histroical 
results. The horizontal axis shows the years, and the vertical axis shows the 
dollar amount.  The beginning value is $100 and the ending value is $24,209.]

A systematic plan like this doesn't assure a profit or protect against loss
in declining markets. Since such a plan involves continuous investment in
securities regardless of fluctuating price levels of such securities, you
should consider your financial ability to continue purchases through
periods of low and high price levels.

In 18 years, college will cost more than it does now. This sum today would
go a long way toward an education in an in-state public university. In 18 
years it will not buy as much education as it does today, but it will be quite
meaningful. If we add to the cash flow on birthdays, or if other relatives kick
in, it will be even more meaningful. And it is relatively painless.

I promise to keep you posted on the progress of Karl Joseph's education
fund. This is not theoretical; it is real.

" . . .  I did decide to practice one thing 
          I have preached for many years." 

Sincerely,


Michael Joseph Carl Roth
President and 
Vice Chairman of the Board

(1)  An investment in a money market fund is neither insured nor guaranteed
by the U.S. government, and there can be no assurance that the fund can
maintain a stable net asset value of $1 per share.


Investment Review

Treasury Money Market trust

OBJECTIVE: Provide investors with maximum current income while maintaining
the highest degree of safety and liquidity.

TYPES OF INVESTMENTS: Securities with maturities of 397 days or less that
are backed by the full faith and credit of the U.S. government and
repurchase agreements collateralized by such securities.

                                                   5/31/95
Net Assets                                      $67.9 Million
Net Asset Value Per Share                          $1.00

Average Annual Total Return as of 5/31/95 
 1 Year                                             4.88%
 Since inception on February 1, 1991                3.98%

The Fund's simple yield was 5.61% for the 7-day period ended May 31, 1995,
and the weighted average maturity was 72 days.

[A graph is shown here which is a cpmparison of the 7-day yield of the
USAA Treasury Money Market Trust to the IBC/Donoghue's Money Fund Averages
U.S. Treasury & Repo from 5/94 to 5/95.  The vertical axis shows the yield and 
the horizontal axis shows the time period.  The 7-day yield as of 5/31/95 for 
the USAA Treasury Money Market Trust is 5.63% and the 7-day yield as of 5/31/95
for the IBC/Donoghue's Money Fund Averages/U.S.Treasury & Repo is 5.34%.]

The graph tracks the Fund's 7-day yield against IBC/Donoghue's Money Fund
Averages/U.S. Treasury & Repo, an average of all major treasury money
market fund yields. While past performance is no guarantee of future results, 
the Fund appears to remain competitive in the money market industry. 

Total return equals income yield plus share price change and assumes
reinvestment of all dividends and capital gain distributions. No adjustment
has been made for taxes payable by shareholders on their reinvested
dividends and capital gain distributions. An investment in this Fund is
neither insured nor guaranteed by the U.S. government, and there can be no
assurance that the Fund can maintain a stable net asset value of $1.00 per
share.

Message from the Manager

[A photo of J. Eric Thorderson, Portfolio Manager appears here]

Fund Performance

Yields for this Fund rise and fall with other short-term securities,
particularly Treasury securities. Since the last semiannual report in
November 1994, the Federal Reserve made one additional increase to the Fed
Funds Rate. This resulted in higher yields for the Fund, particularly from
those yield levels seen last May. As of this writing, the Fed Funds target
is 6.0%, an increase of 3.0% since the beginning of 1994.     

We manage the Fund using a barbell approach of repurchase agreements and
Treasury securities. You may recall that a barbell maturity structure is
one where securities are concentrated in both short maturities and long
maturities, while still maintaining a weighted average maturity within SEC
guidelines. Now that short-term interest rates are falling, this strategy
remains the same. The strategy provides daily liquidity while at the same
time allowing for investment in relatively longer-term Treasury securities
with higher yields. 

To illustrate, as of May 31, 1995, 48% of the securities in the Fund mature
in less than seven days. At the other extreme, 40% of the securities mature
in 70 days or longer, although none of the securities exceed 397 days (as
required by law). The weighted average maturity of the Fund is 72 days, 19
days longer than last November. 

This Fund remains an alternative for investors looking for safety of
principal and minimum risk. Although the primary focus is credit strength,
it offers a competitive yield that may be enhanced by an exemption from
state income tax. Under federal law, the income derived from obligations
issued by the U.S. government and certain of its agencies and
instrumentalities is exempt from state personal income taxes. Many states
that tax personal income permit mutual funds to pass-through this tax
exemption to shareholders. You may wish to consult a tax advisor,
accountant, or attorney for more details.

See page 9 for a complete listing of the Portfolio of Investments in
Securities.

An investment in this Fund is neither insured nor guaranteed by the U.S.
government, and there can be no assurance that the Fund can maintain a
stable net asset value of $1.00 per share.

[A graph is shown here showing the growth of $10,000, from 2/1/91 to 
5/31/95, invested in the USAA Treasury Money Market Trust.  The 
vertical axis shows the dollar amount and the horizontal axis shows
the time period.  The ending value is $11,845.]

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND THE VALUE
OF YOUR INVESTMENT MAY VARY ACCORDING TO THE FUND'S PERFORMANCE.
INCOME MAY BE SUBJECT TO FEDERAL, STATE OR LOCAL TAXES, OR TO THE 
ALTERNATIVE MINIMUM TAX.

Independent Auditors' Report

The Shareholders and Board of Trustees
USAA Investment Trust:

We have audited the accompanying statement of assets and liabilities and
portfolio of investments in securities of the Treasury Money Market Trust
of USAA Investment Trust as of May 31, 1995, the related statement of
operations for the year ended May 31, 1995, the statements of changes in
net assets for the year ended May 31, 1995, and the eight-month period
ended May 31, 1994, and the financial highlights information presented 
in note 7 to the financial statements for each of the periods in the
five-year period ended May 31, 1995. These financial statements and the
financial highlights information are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights information based on our audits.

We conducted our audits 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 the
financial highlights information 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 as of May 31, 1995, by correspondence with
the custodian and brokers. 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, the financial statements and the financial highlights
information referred to above present fairly, in all material respects, the
financial position of the Treasury Money Market Trust of USAA Investment
Trust as of May 31, 1995, the results of its operations for the year ended
May 31, 1995, the changes in its net assets for the year ended May 31,
1995, and the eight-month period ended May 31, 1994, and the financial
highlights information for each of the periods in the five-year period
ended May 31, 1995, in conformity with generally accepted accounting
principles.

                                   KPMG PEAT MARWICK LLP
San Antonio, Texas
July 7, 1995




Treasury Money Market Trust
Statement of Assets and Liabilities
(In Thousands)

May 31, 1995

Assets
     Investments in securities                                           $41,381
     Repurchase agreements                                                30,145
     Cash                                                                    389
     Receivables:
          Capital shares sold                                                 43
          Interest                                                            74
                                                                         -------
               Total assets                                               72,032
                                                                         -------
Liabilities
     Securities purchased                                                  3,917
     Capital shares redeemed                                                 150
     USAA Investment Management Company                                        5
     USAA Transfer Agency Company                                              5
     Accounts payable and accrued expenses                                    55
     Dividends on capital shares                                              24
                                                                         -------
           Total liabilities                                               4,156
                                                                         -------
               Net assets applicable to capital shares outstanding       $67,876
                                                                         =======
Represented by:
     Paid-in capital                                                     $67,876
                                                                         =======
     Capital shares outstanding, unlimited number of shares authorized,
          no par value                                                    67,876
                                                                         =======
     Net asset value, redemption price, and offering price per share     $  1.00
                                                                         =======


See accompanying notes to financial statements.

Treasury Money Market Trust
Portfolio of Investments in Securities
(In Thousands)

May 31, 1995

                    U.S. Treasury Bills (53.7%)
     Principal      
     Amount            Security                            Value
     
     $    2,500     5.64%, 6/01/95                       $ 2,500
          1,000     6.08%, 6/08/95                           999
          2,000     5.64%, 6/22/95                         1,993
          3,000     5.78%, 6/29/95                         2,987
          1,000     6.04%, 7/06/95                           994
          2,500     5.70%, 7/13/95                         2,483
          2,000     6.06%, 8/10/95                         1,976
          2,000     5.69%, 8/17/95                         1,976
          1,500     6.18%, 8/24/95                         1,478
          2,000     5.65%, 8/31/95                         1,972
          1,000     5.87%, 9/07/95                           984
          1,500     5.90%, 9/14/95                         1,474
          1,000     5.66%, 9/21/95                           982
          1,000     5.67%, 10/05/95                          980
          1,000     5.84%, 10/05/95                          980
          1,000     5.69%, 10/19/95                          978
          1,000     6.00%, 10/19/95                          977
          1,000     6.46%, 11/16/95                          970
          2,000     5.61%, 11/24/95                        1,945
          1,000     6.66%, 12/14/95                          964
          2,100     5.83%, 1/11/96                         2,024
          1,500     5.78%, 2/08/96                         1,439
          1,000     5.66%, 4/04/96                           952
          1,500     5.48%, 5/02/96                         1,423
                                                         --------

               Total U.S. treasury bills (cost:$36,430)   36,430
                                                         -------- 


                  U.S. Treasury Notes (7.3%)
     Principal      
     Amount               Security                               Value
     
     $    1,000        4.25%, 7/31/95                            $   997
          1,500        3.88%, 8/31/95                              1,492
          1,500        4.00%, 1/31/96                              1,481
          1,000        4.25%, 5/15/96                                981
                                                                --------
          Total U.S. treasury notes (cost: $4,951)                 4,951
                                                                --------
          Total U.S. treasury bills and notes (cost: $41,381)     41,381
                                                                --------


                        Repurchase Agreements (44.4%)

 9,595    First Chicago Corp., 5.85%, acquired on 5/25/95 and due 
            6/01/95 at $9,606 (collateralized by a $9,855 U.S. 
            Treasury Note, 3.88%, due 10/31/95; market value of
            $9,804)                                                    9,595
 4,570    First Chicago Corp., 5.90%, acquired on 5/30/95 and due
            6/06/95 at $4,575 (collateralized by a $4,690 U.S. 
            Treasury Note, 3.88%, due 10/31/95; market value of
            $4,666)                                                    4,570
 5,640    Merrill Lynch & Co. Inc., 5.90%, acquired on 5/31/95
            and due 6/07/95 at $5,646 (collateralized by a $5,690
            U.S. Treasury Note, 4.63%, due 8/15/95; market value of
            $5,750)                                                    5,640
10,340    State Street Boston Corp., 5.80%, acquired on 5/26/95
            and due 6/02/95 at $10,352 (collateralized by a $10,395
            U.S.Treasury Note, 7.38%, due 5/15/96; market value of 
            $10,565)                                                  10,340
                                                                     --------
           Total repurchase agreements (cost: $30,145)                30,145
                                                                     --------
           Total investments (cost: $71,526)                         $71,526
                                                                     ========

Treasury Money Market Trust
Notes to Portfolio of Investments

May 31, 1995

General Notes

Values of securities are determined by procedures and practices discussed
in note 1 to the financial statements. 

The cost of securities for federal income tax purposes is approximately the
same as that reported in the financial statements.

The percentages shown represent the percentage of the investments to net
assets.  

See accompanying notes to financial statements.

Treasury Money Market Trust
Statement of Operations
(In Thousands)

Year ended May 31, 1995
 
Net investment income:
     Interest income                                      $2,536
                                                         --------
     Expenses:
          Management fees                                     60
          Transfer agent's fees                               18
          Custodian's fees                                    40
          Postage                                              6
          Shareholder reporting fees                           9
          Trustees' fees                                       3
          Registration fees                                   48
          Audit fees                                          40
          Legal fees                                           5
          Other                                                5
                                                         --------
           Total expenses before reimbursement               234
          Expenses reimbursed                                (54)
                                                         --------
               Total expenses after reimbursement            180
                                                         --------
                 Net investment income                    $2,356
                                                         ========
 
See accompanying notes to financial statements.

Treasury Money Market Trust
Statements of Changes in Net Assets
(In Thousands)

Year ended May 31, 1995
and Eight-month period ended May 31, 1994

                                                            1995      1994
From operations:
     Net investment income                                $ 2,356    $   634
                                                          ---------  ---------
                                        
Distributions to shareholders from:
     Net investment income                                 (2,356)      (634)
                                                          ---------  ---------
                         
From capital share transactions:
     Shares sold                                           74,528     34,016
     Shares issued for dividends reinvested                 2,202        593
     Shares redeemed                                      (46,838)   (27,073)
                                                          ---------  --------
   Increase in net assets from capital share transactions  29,892      7,536 
                                                          ---------  --------
Net increase in net assets                                 29,892      7,536
Net assets:
     Beginning of period                                   37,984     30,448
                                                          ---------  --------
     End of period                                        $67,876    $37,984
                                                          =========  ========

Change in shares outstanding:
     Shares sold                                           74,528     34,016
     Shares issued for dividends reinvested                 2,202        593
     Shares redeemed                                      (46,838)   (27,073)
                                                          ---------  ---------
          Increase in shares outstanding                   29,892      7,536
                                                          =========  =========
          
See accompanying notes to financial statements.

Treasury Money Market Trust
Notes to Financial Statements
(In Thousands)

May 31, 1995

(1)  Summary of Significant Accounting Policies 

USAA INVESTMENT TRUST (the Trust), registered under the Investment Company
Act of 1940, is a diversified, open-end management investment company
organized as a Massachusetts business trust consisting of eight separate
funds. The information presented in this annual report pertains only to 
the Treasury Money Market Trust (the Fund). 

On November 8, 1993, the Board of Trustees of the Trust voted to change the
Fund's fiscal year end from September 30 to May 31. The financial information
for the eight-month period ended May 31, 1994 reflects this change.

A.   Security valuation - The value of each security is determined (as of
the close of trading on the New York Stock Exchange on each business day
the Exchange is open) as set forth below: 

1.   Pursuant to Rule 2a-7 of the Securities and Exchange Commission,
securities in the Fund are stated at amortized cost which approximates
market value. Repurchase agreements are valued at cost.

2.   Securities which cannot be valued by the methods set forth above, and
all other assets, are valued in good faith at fair value, using methods
determined by the Manager under the general supervision of the Board of
Trustees.

B.   Federal taxes - The Fund's policy is to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies
and to distribute substantially all of its income to its shareholders.
Therefore, no federal income or excise tax provision is required.

C.   Investments in securities - As is common in the industry, security
transactions are accounted for on the date the securities are purchased or
sold (trade date). Gain or loss from sales of investment securities is computed
on the identified cost basis. Distributions to shareholders are recorded on 
the ex-dividend date. Interest income is recorded on the accrual basis.
Discounts and premiums on securities are amortized over the life of the 
respective securities.

(2)  Line of Credit

The Fund participates with other USAA funds in a joint $150 million
short-term revolving loan agreement (the Agreement) through January 15,
1996, for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition 
of securities. Subject to availability under this Agreement, the Fund may
borrow up to 5% of the market value of its assets at the time of the
borrowing. Borrowings under this Agreement will bear interest at .125% over
the Federal Funds Rate as published by the Federal Reserve Bank of New York
or at .125% over the London Interbank Offered Rate. The Fund had no
borrowings under this Agreement during the year ended May 31, 1995.

(3)  Distributions

As required by Federal Law (Internal Revenue Code of 1986, as amended, and
the Regulations thereunder), the distributions related to earnings for the
fiscal year ended May 31, 1995 were $.05 per share, which were entirely derived
from taxable interest income.

Net investment income is accrued daily as dividends and distributed to
shareholders monthly. All net investment income available for distribution
was distributed as of May 31, 1995. Distributions of realized gains from
security transactions not offset by capital losses are made in the
succeeding fiscal year.  

The Treasury Money Market Trust earned 56.4% of its income from investments
in U.S. Treasury securities during the fiscal year.

(4)  Investment Transactions

Purchases and sales/maturities of securities for the year ended May 31,
1995 were $1,405,799 and $1,372,665, respectively.
 
(5)  Transactions with Manager

A.   Management fees - The investment policy of the Fund and the management
of the Fund's portfolio is carried out by USAA Investment Management
Company (the Manager). The Fund's management fees are computed at .125% of
its annual average net assets.

The Manager has voluntarily agreed to limit the annual expenses of the Fund
to .375% of its annual average net assets. This limitation may be rescinded
at any time and in the event of rescission the terms of the advisory
agreement would govern.

B.   Transfer agent's fees - USAA Transfer Agency Company, d/b/a USAA
Shareholder Account Services, an affiliate of the Manager, provides
transfer agent services to the Fund. Shareholder accounting service fees
are based on an annual charge per shareholder account plus out-of-pocket
expenses. 

C.   Underwriting agreement - The Trust has an agreement with the Manager
for exclusive underwriting and distribution of the Fund's shares on a
continuing best efforts basis. This agreement provides that the Manager
will receive no fee or other remuneration for such services.

(6)  Repurchase Agreements

The Fund may enter into repurchase agreements with commercial banks or
recognized security dealers. These agreements are secured by obligations
backed by the full faith and credit of the U.S. Government. Obligations
pledged as collateral are required to maintain a value equal to or in
excess of the resale price of the repurchase agreement and are held by the
Fund's custodian until maturity of the repurchase agreement. The Fund's
Manager monitors the creditworthiness of sellers with which the Fund may
enter into repurchase agreements.

(7)  Financial Highlights

Per share operating performance for a share outstanding throughout each
period is as follows:
<TABLE>
<CAPTION>
                                             Eight-month
                             Year ended     period ended        
                               May 31,         May 31,          Year ended September 30
                                1995            1994           1993          1992        1991*
<S>                           <C>             <C>            <C>           <C>          <C>
Net asset value at 
     beginning of period      $  1.00         $  1.00         $  1.00      $  1.00      $  1.00
Net investment income             .05             .02             .03          .04          .04
Distributions from net 
     investment income           (.05)           (.02)           (.03)        (.04)        (.04)
                              ---------       ---------       ---------    ---------    ---------
Net asset value at 
     end of period            $  1.00         $  1.00         $  1.00      $  1.00      $  1.00
                              =========       ==========     ==========    =========    ==========
Total return (%)**               4.88            1.96            2.84         4.05         3.51
Net assets at end 
     of period (000)          $67,876         $37,984         $30,448      $25,393      $13,409
Ratio of expenses to 
     average net assets (%)      .375(b)         .375(a)(b)      .375(b)      .375(b)      .375(a)(b)
Ratio of net investment 
     income to average
     net assets (%)              4.91(b)         2.94(a)(b)      2.81(b)      3.89(b)      5.27(a)(b)
</TABLE>

     *    Fund commenced operations February 1, 1991.
     **   Assumes reinvestment of all dividend income and capital gain
             distributions during the period.

(a) Annualized. The ratio is not necessarily indicative of 12 months of 
    operations.

(b) The information contained in the above table is based on actual
    expenses for the period, after giving effect to reimbursements of
    expenses by the Manager. Absent such reimbursements the Fund's ratios
    would have been:
<TABLE>
<CAPTION>
                                            Eight-month
                             Year ended     period ended
                               May 31,         May 31,      Year ended September 30, 
                                1995            1994        1993      1992      1991*
<S>                            <C>             <C>          <C>       <C>       <C>
Ratio of expenses to 
     average net assets (%)     .49             .62(a)       .54       .72      1.31(a)
Ratio of net investment 
     income to average
     net assets (%)            4.80            2.69(a)      2.65      3.55      4.33(a)
</TABLE>
  



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