<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[LOGO OF EXCELSIOR FUNDS APPEARS HERE]
Money Market
Portfolios
ANNUAL REPORT
March 31, 1999
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
LETTER TO SHAREHOLDERS.................................................... 1
STATEMENTS OF ASSETS AND LIABILITIES...................................... 2
STATEMENTS OF OPERATIONS.................................................. 3
STATEMENTS OF CHANGES IN NET ASSETS....................................... 4
FINANCIAL HIGHLIGHTS--SELECTED PER SHARE DATA AND RATIOS.................. 6
PORTFOLIOS OF INVESTMENTS
Treasury Money Fund...................................................... 8
Government Money Fund.................................................... 9
Money Fund............................................................... 10
Tax-Exempt Money Fund.................................................... 11
New York Tax-Exempt Money Fund........................................... 14
NOTES TO FINANCIAL STATEMENTS............................................. 16
INDEPENDENT AUDITORS' REPORT.............................................. 22
FEDERAL TAX INFORMATION................................................... 22
</TABLE>
For shareholder account information, current price and yield quotations, or to
make an initial purchase or obtain a prospectus, call the appropriate telephone
number listed below:
. Initial Purchase and Prospectus Information and Shareholder Services
1-800-446-1012 (From overseas, call 617-557-8280)
. Current Price and Yield Information 1-800-446-1012
. Internet Address: http://www.excelsiorfunds.com
This report must be preceded or accompanied by a current prospectus.
Prospectuses containing more complete information including charges and
expenses regarding Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc.
may be obtained by contacting the Funds at 1-800-446-1012.
Investors should read the current prospectus carefully prior to investing or
sending money.
Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. are sponsored and
distributed by Edgewood Services, Inc.
You may write to Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. at
the following address:
Excelsior Funds
c/o Chase Global Funds Services Company
P.O. Box 2798
Boston, MA 02208-2798
SHARES IN THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, UNITED STATES TRUST COMPANY OF NEW YORK, U.S. TRUST COMPANY OF
CONNECTICUT, THEIR PARENT AND AFFILIATES AND SHARES ARE NOT INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER
AGENCY. FUND SHARES ARE NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
ALTHOUGH THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER
SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
<PAGE>
LETTER TO SHAREHOLDERS
- -------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the annual report for the Excelsior Funds. Fiscal
1999 was an exciting year in the financial markets as a whole and for the fund
family.
Low interest rates and subdued inflation in tandem with turbulent Asian and
Latin American markets proved to be the catalysts for another year of strong--
though narrowly focused--domestic equity performance. At the same time, these
factors combined to constrain the returns on fixed-income investments to
modest levels. The search for consistency and predictability amidst
uncertainty--regarding heightened valuations here at home, international
economic crises, not to mention the course of the U.S. economy--created a
"flight to quality." Continuing the dominant trend of the past few years,
investors redirected much of their money to a relatively small group of
extremely large-capitalized growth companies within the Standard & Poor's 500
Index, leaving the broader market lagging well behind. As a result, small and
mid-sized companies as well as value-oriented investments underperformed
relative to growth-oriented investments. This environment made it difficult
for broadly diversified equity portfolios to meet or exceed the performance of
this narrowly focused market.
On the international front, economic crises and inflationary pressures in
Asia, Eastern Europe, and Latin America temporarily disrupted equity markets
around the world. Many of these troubled economies--and widespread investor
concerns about them--have begun to turn around and are showing sign of
recovery. In Western Europe, equity performance in general was strong, and the
conversion to a single currency, the Euro, was completed on time and without
disrupting the financial markets.
The financial markets will present many challenges and opportunities during
the coming year. U.S. fiscal policy continues to be effective in keeping
inflation under control, and we continue to be cautiously optimistic regarding
the domestic equity markets. International markets, while remaining attractive
on a long-term basis, will require continuous evaluation. In our new global
economy, events in international markets will have a direct impact on the U.S.
economy.
I am confident that the Excelsior fund family will continue to provide you
with the appropriate investment vehicles to respond to the always-changing
economic/financial market environment and to pursue your long-term investment
objectives.
/s/ Frederick S. Wonham
Frederick S. Wonham
Chairman of the Board and President
1
<PAGE>
Excelsior Funds, Inc.
Statements of Assets and Liabilities
March 31, 1999
<TABLE>
<CAPTION>
New York
Treasury Government Tax-Exempt Tax-Exempt
Money Money Money Money Money
Fund Fund Fund Fund Fund
------------ ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at cost--
see
accompanying portfolios. $494,129,536 $642,519,764 $973,162,748 $1,498,524,698 $304,973,294
============ ============ ============ ============== ============
Investments, at value
(Note 1)............... $494,129,536 $642,519,764 $973,162,748 $1,498,524,698 $304,973,294
Cash.................... -- -- -- 8,109 --
Interest receivable..... 1,908,098 1,975,296 3,192,908 8,026,543 1,518,327
Receivable for fund
shares sold............ 114,510 28,158 1,040,942 -- 69,501
Prepaid expenses........ 11,418 14,830 12,721 19,833 2,867
------------ ------------ ------------ -------------- ------------
Total Assets............ 496,163,562 644,538,048 977,409,319 1,506,579,183 306,563,989
LIABILITIES:
Payable for dividends
declared............... 1,636,764 2,414,046 3,333,443 2,875,444 635,638
Payable for fund shares
redeemed............... 47,365 -- 4,872 -- --
Investment advisory fees
payable (Note 2)....... 113,790 126,274 131,166 177,108 15,741
Administration fees
payable (Note 2)....... 69,546 80,002 125,793 203,572 40,930
Administrative service
fees payable (Note 2).. 10,549 17,911 46,088 88,383 1,208
Directors' fees payable
(Note 2)............... 4,144 4,963 4,580 20,681 3,772
Due to custodian bank... -- -- -- -- 28,549
Accrued expenses and
other payables......... 64,555 63,955 95,757 144,740 118,844
------------ ------------ ------------ -------------- ------------
Total Liabilities....... 1,946,713 2,707,151 3,741,699 3,509,928 844,682
------------ ------------ ------------ -------------- ------------
NET ASSETS............... $494,216,849 $641,830,897 $973,667,620 $1,503,069,255 $305,719,307
============ ============ ============ ============== ============
NET ASSETS consist of:
Undistributed
(distributions in
excess of) net
investment income...... $ 8,337 $ (100) $ (17) $ (8,927) $--
Accumulated net realized
gain (loss) on
investments............ 17,863 (87,250) (53,810) (161,635) --
Par value (Note 3)...... 494,193 641,953 973,896 1,503,503 305,719
Paid-in capital in
excess of par value.... 493,696,456 641,276,294 972,747,551 1,501,736,314 305,413,588
------------ ------------ ------------ -------------- ------------
Total Net Assets......... $494,216,849 $641,830,897 $973,667,620 $1,503,069,255 $305,719,307
============ ============ ============ ============== ============
Shares of Common Stock
Outstanding (Note 3).... 494,193,118 641,953,291 973,896,118 1,503,503,175 305,719,307
NET ASSET VALUE PER
SHARE................... $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
</TABLE>
See Notes to Financial Statements
2
<PAGE>
Excelsior Funds, Inc.
Statements of Operations
Year Ended March 31, 1999
<TABLE>
<CAPTION>
New York
Treasury Government Tax-Exempt Tax-Exempt
Money Money Money Money Money
Fund Fund Fund Fund Fund*
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........ $26,251,491 $33,308,360 $39,090,321 $47,552,339 $4,920,804
----------- ----------- ----------- ----------- ----------
EXPENSES:
Investment advisory
fees (Note 2)......... 1,554,888 1,565,967 1,834,108 3,524,089 810,114
Administration fees
(Note 2).............. 792,993 958,372 1,122,474 2,156,742 248,317
Custodian fees......... 145,124 209,408 235,942 363,808 42,029
Administrative servic-
ing fees (Note 2)..... 151,843 184,360 358,371 827,107 7,879
Legal and audit fees... 68,904 83,749 83,612 170,621 57,614
Directors' fees and ex-
penses (Note 2)....... 21,353 23,930 25,670 89,710 10,339
Registration and filing
fees.................. 15,928 15,682 19,654 18,967 2,146
Shareholder reports.... 12,809 15,845 14,706 42,376 9,207
Shareholder servicing
agent fees............ 10,897 13,138 55,294 24,636 2,290
Miscellaneous expenses. 71,160 43,777 99,571 163,237 98,856
----------- ----------- ----------- ----------- ----------
Total Expenses......... 2,845,899 3,114,228 3,849,402 7,381,293 1,288,791
Fees waived and reim-
bursed by investment
adviser and adminis-
trators (Note 2)...... (151,843) (184,360) (358,371) (827,107) (532,521)
----------- ----------- ----------- ----------- ----------
Net Expenses........... 2,694,056 2,929,868 3,491,031 6,554,186 756,270
----------- ----------- ----------- ----------- ----------
NET INVESTMENT INCOME... 23,557,435 30,378,492 35,599,290 40,998,153 4,164,534
----------- ----------- ----------- ----------- ----------
REALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain
(loss) on security
transactions.......... 42,508 (18,567) 4,266 (25,479) --
----------- ----------- ----------- ----------- ----------
Net increase in net as-
sets resulting from op-
erations............... $23,599,943 $30,359,925 $35,603,556 $40,972,674 $4,164,534
=========== =========== =========== =========== ==========
</TABLE>
* New York Tax-Exempt Money Fund commenced operations on August 3, 1998.
See Notes to Financial Statements
3
<PAGE>
Excelsior Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
New York
Treasury Government Tax-Exempt Tax-Exempt
Money Money Money Money Money
Fund Fund Fund Fund Fund*
------------ ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C>
Year Ended March 31,
1999
Net investment income... $ 23,557,435 $ 30,378,492 $ 35,599,290 $ 40,998,153 $ 4,164,534
Net realized gain (loss)
on investments......... 42,508 (18,567) 4,266 (25,479) --
------------ ------------ ------------ -------------- ------------
Net increase in net
assets resulting from
operations............. 23,599,943 30,359,925 35,603,556 40,972,674 4,164,534
Distributions to
shareholders:
From net investment
income................ (23,564,239) (30,378,492) (35,599,290) (40,998,164) (4,164,534)
In excess of net
investment income..... -- (100) (17) (8,928) --
Increase in net assets
from fund share
transactions (Note 3).. 24,540,692 41,732,622 314,791,213 106,572,629 305,719,307
------------ ------------ ------------ -------------- ------------
Net increase in net
assets................. 24,576,396 41,713,955 314,795,462 106,538,211 305,719,307
NET ASSETS:
Beginning of year...... 469,640,453 600,116,942 658,872,158 1,396,531,044 --
------------ ------------ ------------ -------------- ------------
End of year (1)........ $494,216,849 $641,830,897 $973,667,620 $1,503,069,255 $305,719,307
============ ============ ============ ============== ============
(1) Including
undistributed
(distributions in
excess of) net
investment income.. $ 8,337 $ (100) $ (17) $ (8,927) $--
============ ============ ============ ============== ============
Year Ended March 31,
1998
Net investment income... $ 19,297,100 $ 28,148,017 $ 26,060,936 $ 37,894,217
Net realized gain (loss)
on investments......... 7,136 (8,971) 12,526 (24,067)
------------ ------------ ------------ --------------
Net increase in net
assets resulting from
operations............. 19,304,236 28,139,046 26,073,462 37,870,150
Distributions to
shareholders:
From net investment
income................ (19,297,045) (28,148,017) (26,060,936) (37,894,205)
In excess of net
investment income..... (126) -- -- --
Increase in net assets
from fund share
transactions (Note 3).. 120,546,015 66,291,908 160,793,465 326,868,880
------------ ------------ ------------ --------------
Net increase in net
assets................. 120,553,080 66,282,937 160,805,991 326,844,825
NET ASSETS:
Beginning of year...... 349,087,373 533,834,005 498,066,167 1,069,686,219
------------ ------------ ------------ --------------
End of year (2)........ $469,640,453 $600,116,942 $658,872,158 $1,396,531,044
============ ============ ============ ==============
--------
(2) Including
undistributed
(distributions in
excess of) net
investment income.. $ (126) $ -- $ -- $ 12
============ ============ ============ ==============
</TABLE>
--------
* New York Tax-Exempt Money Fund commenced operations on August 3, 1998.
See Notes to Financial Statements
4
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
5
<PAGE>
Excelsior Funds, Inc.
Financial Highlights-Selected Per Share Data and Ratios
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
Net Asset Total Dividends Dividends
Value, Net Net Realized From From Net in Excess of
Beginning Investment Gain (Loss) Investment Investment Net Investment
of Period Income on Investments Operations Income Income
--------- ---------- -------------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
TREASURY MONEY FUND -- (2/13/91*)
Year Ended March 31,
1995................... $1.00 $0.04165 -- $0.04165 $(0.04165) --
1996................... 1.00 0.05043 -- 0.05043 (0.05043) --
1997................... 1.00 0.04676 -- 0.04676 (0.04676) --
1998................... 1.00 0.04853 -- 0.04853 (0.04853) -- ++
1999................... 1.00 0.04543 $0.00002 0.04545 (0.04545) --
GOVERNMENT MONEY FUND -- (5/8/85*)
Year Ended March 31,
1995................... $1.00 $0.04397 -- $0.04397 $(0.04397) --
1996................... 1.00 0.05296 -- 0.05296 (0.05296) --
1997................... 1.00 0.04862 -- 0.04862 (0.04862) --
1998................... 1.00 0.05082 -- 0.05082 (0.05082) --
1999................... 1.00 0.04838 -- 0.04838 (0.04838) -- ++
MONEY FUND -- (5/3/85*)
Year Ended March 31,
1995................... $1.00 $0.04494 $0.00002 $0.04496 $(0.04496) --
1996................... 1.00 0.05336 -- 0.05336 (0.05336) --
1997................... 1.00 0.04888 -- 0.04888 (0.04888) --
1998................... 1.00 0.05139 -- 0.05139 (0.05139) --
1999................... 1.00 0.04901 -- 0.04901 (0.04901) -- ++
TAX-EXEMPT MONEY FUND -- (5/24/85*)
Year Ended March 31,
1995................... $1.00 $0.02825 -- $0.02825 $(0.02825) --
1996................... 1.00 0.03362 -- 0.03362 (0.03362) --
1997................... 1.00 0.03050 -- 0.03050 (0.03050) --
1998................... 1.00 0.03216 -- 0.03216 (0.03216) --
1999................... 1.00 0.02911 -- 0.02911 (0.02910) $(0.00001)
NEW YORK TAX-EXEMPT MONEY FUND -- (8/3/98*)
Period Ended March 31,
1999................... $1.00 $0.01711 -- $0.01711 $(0.01711) --
</TABLE>
* Commencement of operations
** Annualized
*** Not Annualized
+ Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
++ Amount represents less than $0.00001 per share.
See Notes to Financial Statements
6
<PAGE>
<TABLE>
<CAPTION>
Ratio of Ratio of Ratio of
Net Gross Net
Net Asset Net Assets, Operating Operating Investment
Value, End Expenses Expenses Income Fee
Total End Total of Period to Average to Average to Average Waivers
Distributions of Period Return (000's) Net Assets Net Assets+ Net Assets (Note 2)
------------- --------- ------ ----------- ---------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.04165) $1.00 4.25% $ 196,932 0.55% 0.57% 4.09% $0.00019
(0.05043) 1.00 5.16% 258,169 0.55% 0.57% 5.03% 0.00021
(0.04676) 1.00 4.78% 349,087 0.52% 0.54% 4.68% 0.00026
(0.04853) 1.00 4.96% 469,640 0.52% 0.54% 4.86% 0.00021
(0.04545) 1.00 4.64% 494,217 0.52% 0.55% 4.55% 0.00029
$(0.04397) $1.00 4.49% $ 725,774 0.50% 0.53% 4.38% $0.00024
(0.05296) 1.00 5.43% 461,470 0.50% 0.53% 5.36% 0.00031
(0.04862) 1.00 4.97% 533,834 0.47% 0.51% 4.86% 0.00035
(0.05082) 1.00 5.20% 600,117 0.47% 0.50% 5.09% 0.00030
(0.04838) 1.00 4.95% 641,831 0.47% 0.50% 4.85% 0.00029
$(0.04496) $1.00 4.59% $ 824,578 0.49% 0.52% 4.49% $0.00026
(0.05336) 1.00 5.47% 394,285 0.50% 0.53% 5.40% 0.00037
(0.04888) 1.00 5.00% 498,066 0.47% 0.53% 4.89% 0.00052
(0.05139) 1.00 5.26% 658,872 0.48% 0.52% 5.14% 0.00046
(0.04901) 1.00 5.01% 973,668 0.48% 0.52% 4.85% 0.00049
$(0.02825) $1.00 2.86% $ 814,890 0.49% 0.52% 2.85% $0.00030
(0.03362) 1.00 3.41% 966,711 0.49% 0.53% 3.35% 0.00042
(0.03050) 1.00 3.09% 1,069,686 0.47% 0.52% 3.05% 0.00053
(0.03216) 1.00 3.26% 1,396,531 0.47% 0.53% 3.21% 0.00053
(0.02911) 1.00 2.95% 1,503,069 0.46% 0.52% 2.91% 0.00059
$(0.01711) $1.00 1.72%*** $ 305,719 0.47%** 0.79%** 2.24%** $0.00219
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments March 31, 1999
Treasury Money Fund
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- -----------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 99.24%
Federal Home Loan Bank
$ 10,000,000 06/16/99................................... 4.74% $ 9,900,039
Student Loan Marketing Association
13,000,000 06/17/99................................... 5.15# 13,000,000
25,000,000 11/10/99................................... 5.29# 24,994,043
25,000,000 11/16/99................................... 5.08 25,000,000
13,500,000 02/22/00................................... 5.19# 13,495,318
U.S. Treasury Bills
355,000,000 04/22/99................................... 4.69 354,028,108
U.S. Treasury Notes
50,000,000 04/30/99................................... 4.63 50,071,516
-----------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $490,489,024).......................... 490,489,024
-----------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ ------------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 0.74%
3,640,512 Dreyfus Government Cash
Management Fund
(Cost $3,640,512)................................... $ 3,640,512
------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS
(Cost
$494,129,536*)... 99.98% $494,129,536
OTHER ASSETS &
LIABILITIES
(NET)............ 0.02 87,313
------ ------------
NET ASSETS....... 100.00% $494,216,849
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities--rate disclosed is as of March 31, 1999.
See Notes to Financial Statements
8
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments March 31, 1999
Government Money Fund
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- ------------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 99.44%
Federal Home Loan Bank
$ 10,000,000 04/01/99................................. 4.80% $ 10,000,000
200,000,000 06/23/99................................. 4.74 197,814,333
25,000,000 02/24/00................................. 4.98 24,998,873
Student Loan Marketing Association
35,000,000 06/17/99................................. 5.15# 35,000,000
30,900,000 11/01/99................................. 5.04# 30,892,671
100,000,000 11/10/99................................. 5.29# 99,976,173
50,000,000 11/16/99................................. 5.08 50,000,000
U.S. Treasury Bills
190,000,000 04/19/99................................. 4.82 189,542,100
------------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS (Cost $638,224,150).......... 638,224,150
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ ------------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 0.67%
4,295,614 Dreyfus Government Cash Management Fund
(Cost $4,295,614)........................... $ 4,295,614
------------
TOTAL INVESTMENTS
(Cost $642,519,764*)................................... 100.11% $642,519,764
OTHER ASSETS & LIABILITIES (NET)....................... (0.11) (688,867)
------ ------------
NET ASSETS............................................. 100.00% $641,830,897
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities--rate disclosed is as of March 31, 1999.
See Notes to Financial Statements
9
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments March 31, 1999
Money Fund
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- ------------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 48.19%
Federal Farm Credit Bank
$ 10,000,000 04/06/99............................... 4.76% $ 9,993,389
Federal Home Loan Bank
10,000,000 04/01/99............................... 4.80 10,000,000
Student Loan Marketing Association
50,000,000 01/12/00............................... 5.07# 49,984,328
89,820,000 02/11/00............................... 4.96# 89,873,393
50,000,000 03/23/00............................... 4.88# 50,000,000
U.S. Treasury Bills
260,000,000 04/19/99............................... 4.82 259,373,400
------------
TOTAL U.S. GOVERNMENT
& AGENCY OBLIGATIONS
(Cost $469,224,510).................... 469,224,510
------------
COMMERCIAL PAPER -- 24.22%
45,000,000 American Express Co., 04/06/99......... 4.92 45,000,000
45,000,000 Asset Securitization, 04/27/99......... 4.87 44,841,725
25,000,000 Campbell Soup Co., 04/05/99............ 4.95 24,982,921
11,000,000 Chevron Corp.,
04/14/99............................... 4.87 11,000,000
45,000,000 General Electric Capital Corp.,
04/13/99............................... 4.87 45,000,000
40,000,000 General Motors Acceptance Corp.,
04/07/99............................... 4.91 40,000,000
25,000,000 +Prudential Funding Corp., 08/31/99.... 4.99# 25,000,000
------------
TOTAL COMMERCIAL PAPER
(Cost $235,824,646).................... 235,824,646
------------
CERTIFICATES OF DEPOSIT -- 15.40%
25,000,000 Banque Nationale de Paris, 07/14/99.... 4.86# 25,000,000
45,000,000 Citibank Canada,
04/28/99............................... 4.88 45,000,000
40,000,000 Royal Bank of Canada, 03/22/00......... 5.15 39,988,767
40,000,000 Toronto Dominion Bank, 02/22/00........ 5.14 39,986,186
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $149,974,953)...................... 149,974,953
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- ------------
<C> <S> <C> <C>
CORPORATE BONDS -- 8.81%
Lehman Brothers Holdings, Series E,
$15,000,000 09/27/99.................................. 7.13% $ 15,112,961
25,340,000 09/27/99.................................. 7.11 25,527,962
Merrill Lynch & Co., Inc.,
45,000,000 10/04/99.................................. 5.30# 45,065,120
------------
TOTAL CORPORATE BONDS
(Cost $85,706,043)........................ 85,706,043
------------
ASSET-BACKED SECURITY -- 3.08%
30,000,000 Ford Credit Auto Owner Trust, 1999-A,
Class A2, 01/18/00
(Cost $30,000,000)........................ 5.09 30,000,000
------------
<CAPTION>
Shares
------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 0.25%
2,432,596 Dreyfus Government Cash Management Fund
(Cost $2,432,596)......................... 2,432,596
------------
TOTAL INVESTMENTS (Cost $973,162,748*)................. 99.95% $973,162,748
OTHER ASSETS & LIABILITIES (NET)....................... 0.05 504,872
------ ------------
NET ASSETS............................................. 100.00% $973,667,620
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities--rate disclosed is as of March 31,
1999.
+ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31, 1999,
these securities amounted to $25,000,000 or 2.57% of net assets.
See Notes to Financial Statements
10
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments March 31, 1999
Tax-Exempt Money Fund
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- 65.95%
$15,000,000 Austin, Texas, Commercial Paper,
3.150%, 04/12/1999................................... $15,000,000
15,000,000 Burke County, Georgia, Development Authority,
Commercial Paper,
3.100%, 04/19/1999................................... 15,000,000
6,225,000 Burlington, Kansas, Commercial Paper, Series C1,
3.050%, 08/13/1999................................... 6,225,000
8,800,000 Burlington, Kansas, Commercial Paper, Series C2,
3.050%, 08/13/1999................................... 8,800,000
8,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
2.750%, 05/13/1999................................... 8,000,000
2,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
2.900%, 05/13/1999................................... 2,000,000
30,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
2.950%, 04/07/1999................................... 30,000,000
20,400,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
3.000%, 04/16/1999................................... 20,400,000
8,750,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
3.050%, 08/13/1999................................... 8,750,000
17,000,000 Houston, Texas, General Obligation Commercial Paper,
3.050%, 08/18/1999................................... 17,000,000
15,000,000 Illinois Educational Facilities Authority Revenue
Notes, 3.050%, 04/08/1999............................ 15,000,000
15,000,000 Intermountain Power Agency, Utah, 2.750%, 05/07/1999. 15,000,000
6,000,000 Intermountain Power Agency, Utah, 2.850%, 04/06/1999. 6,000,000
15,000,000 Intermountain Power Agency, Utah, 2.900%, 04/16/1999. 15,000,000
10,000,000 Jacksonville, Florida, Electric Authority Commercial
Paper, Series A,
2.950%, 05/11/1999................................... 10,000,000
20,000,000 Jacksonville, Florida, Pollution Control Refunding
Revenue Bonds, Florida Power & Light Co. Project,
2.700%, 05/14/1999................................... 20,000,000
4,000,000 Jacksonville, Florida, Pollution Control Refunding
Revenue Bonds, Florida Power & Light Co. Project,
2.850%, 04/09/1999................................... 4,000,000
14,800,000 Jasper County, Indiana, Commercial Paper, Northern
Indiana Public Services,
2.950%, 04/06/1999................................... 14,800,000
9,150,000 Jasper County, Indiana, Commercial Paper, Northern
Indiana Public Services,
2.950%, 04/06/1999................................... 9,150,000
5,000,000 Jasper County, Indiana, Commercial Paper, Northern
Indiana Public Services,
3.200%, 05/04/1999................................... 5,000,000
16,200,000 Jasper County, Indiana, Commercial Paper, Pollution
Control, 2.950%, 04/01/1999.......................... 16,200,000
18,000,000 Jasper County, Indiana, Commercial Paper, Public
Power Services,
2.850%, 05/17/1999................................... 18,000,000
25,500,000 Kentucky Asset/Liability Fund, Commercial Paper,
2.950%, 08/12/1999................................... 25,500,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$20,000,000 Lower Colorado River Authority, Texas, Commercial
Paper, 2.900%, 08/10/1999............................ $20,000,000
12,530,000 Maricopa County, Arizona, Commercial Paper, 2.700%,
05/10/1999........................................... 12,530,000
5,000,000 Metropolitan Transit Authority, New York, Special
Obligation Bond Anticipation Notes, Series CP1,
3.000%, 04/12/1999................................... 5,000,000
20,000,000 Nassau County, New York, Industrial Development
Agency, Civic Facility Revenue Bonds, Cold Spring
Harbor Lab Project, 3.500%, 08/18/1999............... 20,033,616
5,000,000 Nassau County, New York, Industrial Development
Agency, Civic Facility Revenue Bonds, Cold Spring
Harbor Lab Project, 4.000%, 05/18/1999............... 5,004,104
11,000,000 New Jersey State Transportation, Commercial Paper,
2.600%, 04/06/1999................................... 11,000,000
23,500,000 New York City, New York, Commercial Paper, 2.850%,
04/16/1999........................................... 23,500,000
21,400,000 New York City, New York, Municipal Water Financing
Authority, Water and Sewer Systems Revenue Bonds,
3.150%, 04/16/1999................................... 21,400,000
17,150,000 New York State Dormitory Authority, Commercial Paper,
2.900%, 04/09/1999................................... 17,150,000
10,000,000 New York State Power Authority & General Purpose
Revenue Bonds,
2.900%, 03/01/2016+.................................. 10,000,000
8,165,000 New York State Power Authority & General Purpose
Revenue Bonds,
2.900%, 08/17/1999................................... 8,165,000
10,000,000 New York State Power Authority & General Purpose
Revenue Bonds,
2.950%, 05/12/1999................................... 10,000,000
7,100,000 New York State, Local Government Assistance
Corporation, Series W,
3.100%, 04/07/1999................................... 7,100,000
45,000,000 North Carolina Municipal Power Agency, Commercial
Paper, 3.050%, 08/11/1999............................ 45,000,000
23,700,000 Nueces River, Texas, San Miguel Electric Corp.,
Commercial Paper,
2.700%, 05/11/1999................................... 23,700,000
25,000,000 Nueces River, Texas, San Miguel Electric Corp.,
Commercial Paper,
3.100%, 06/03/1999................................... 25,000,000
26,500,000 Nueces River, Texas, San Miguel Electric Corp.,
Commercial Paper,
3.150%, 06/09/1999................................... 26,500,000
10,000,000 Omaha, Nebraska, Public Power District, Commercial
Paper, 2.950%, 04/09/1999............................ 10,000,000
6,500,000 Pleasant Prarie, Wisconsin, Pollution Control
Refunding Revenue Bonds, Wisconsin Electric Power
Co., Series A, 3.050%, 09/01/2030+................... 6,500,000
2,680,000 Purdue University, Indiana, University Revenue Bonds,
Student Fee, Series E, 2.900%, 07/01/2011+........... 2,680,000
1,100,000 Purdue University, Indiana, University Revenue Bonds,
Student Fee, Series L, (AMBAC), 2.900%, 07/01/2020+.. 1,100,000
</TABLE>
See Notes to Financial Statements
11
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments March 31, 1999
Tax-Exempt Money Fund -- (continued)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$25,985,000 Salt River, Arizona, Electric & Gas Commercial
Paper, 2.850%, 04/09/1999........................... $25,985,000
10,000,000 Salt River, Arizona, Electric & Gas Commercial
Paper, 2.950%, 04/12/1999........................... 10,000,000
10,000,000 Salt River, Texas, Commercial Paper, 2.850%,
04/12/1999.......................................... 10,000,000
8,000,000 Salt River, Texas, Commercial Paper, 3.000%,
04/12/1999.......................................... 8,000,000
17,700,000 San Antonio, Texas, Electric & Gas Commercial Paper,
2.800%, 05/10/1999.................................. 17,700,000
13,200,000 San Antonio, Texas, Electric & Gas Commercial Paper,
3.000%, 04/14/1999.................................. 13,200,000
6,000,000 San Antonio, Texas, Electric & Gas Commercial Paper,
3.050%, 08/13/1999.................................. 6,000,000
5,000,000 Shelby County, Tennessee, Commercial Paper, 2.750%,
04/14/1999.......................................... 5,000,000
30,000,000 Shelby County, Tennessee, Commercial Paper, 2.950%,
04/07/1999.......................................... 30,000,000
35,000,000 Shelby County, Tennessee, Commercial Paper, 2.950%,
04/08/1999.......................................... 35,000,000
15,000,000 South Carolina State, Public Service Authority
Commercial Paper,
2.750%, 05/12/1999.................................. 15,000,000
20,000,000 South Carolina State, Public Service Authority
Commercial Paper,
2.850%, 04/09/1999.................................. 20,000,000
35,000,000 South Carolina State, Public Service Authority
Commercial Paper,
3.150%, 05/04/1999.................................. 35,000,000
24,400,000 Tennessee School Board Association, Commercial
Paper, 3.100%, 08/18/1999........................... 24,400,000
50,000,000 Texas State, Tax & Revenue Anticipation Notes,
4.500%, 08/31/1999.................................. 50,328,014
20,000,000 Utah, General Obligation Commercial Paper, 2.900%,
04/05/1999.......................................... 20,000,000
30,000,000 Utah, General Obligation Commercial Paper, 2.950%,
05/11/1999.......................................... 30,000,000
19,430,000 Wisconsin State, General Obligation Commercial
Paper, 2.800%, 05/12/1999........................... 19,430,000
-----------
991,230,734
-----------
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED
BY LETTERS OF CREDIT -- 33.75%
ABN AMRO BANK N.V./MORGAN GUARANTY TRUST
14,800,000 Long Island Power Authority, New York, Electric
Systems Revenue Bonds, Series 5, 3.100%,
05/01/2033+......................................... 14,800,000
BANK OF AMERICA
20,000,000 Des Moines, Iowa, Hospital Facilities Revenue Bonds,
Iowa Methodist Medical Center Project, 3.050%,
08/01/2015+......................................... 20,000,000
20,000,000 Michigan Technological University Revenue Bonds,
Series A, (AMBAC), 2.950%, 10/01/2018+.............. 20,000,000
BANK OF NOVA SCOTIA
11,000,000 New York State, Local Government Assistance
Corporation Revenue Bonds, Series G, 2.700%,
04/01/2025+......................................... 11,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED
BY LETTERS OF CREDIT -- (continued)
BANK OF NOVA SCOTIA/CHASE MANHATTAN BANK
$ 3,400,000 New Hampshire State Industrial Development Authority,
Pollution Control Revenue Bonds, Bangor Hydro-
Electric Co. Project, Series 1983,
3.250%, 01/01/2009+.................................. $ 3,400,000
BANK OF TOKYO MITSUBISHI
14,400,000 University of Iowa, Facilities Revenue Bonds, Human
Biology Research, Series A, 4.550%, 06/01/2005+...... 14,400,000
BARCLAYS BANK, PLC
7,700,000 Bucks County, Pennsylvania, Industrial Development
Authority Revenue Bonds, Tru Realty--Toys R Us
Project,
2.800%, 12/01/2018+.................................. 7,700,000
BAYERISCHE LANDESBANK
5,000,000 Oklahoma State Water Resources, State Line Program
Revenue Bonds,
2.900%, 09/01/2032+.................................. 5,000,000
BAYERISCHE LANDESBANK/MORGAN GUARANTY TRUST
7,485,000 New York State Job Development Authority Revenue
Bonds, Series C1-34,
2.900%, 03/01/2000+.................................. 7,485,000
3,585,000 New York State Job Development Authority Revenue
Bonds, Series D1-16,
2.900%, 03/01/2000+.................................. 3,585,000
CS FIRST BOSTON
6,900,000 Garden City, Kansas, Industrial Development Revenue
Bonds, Inland Container Corp. Project, Temple Series
1983, 3.200%, 01/01/2008+............................ 6,900,000
25,000,000 Ohio County, Kentucky, Pollution Control Revenue
Bonds, Big Rivers Electric Corp., (AMBAC), 3.050%,
06/01/2013+.......................................... 25,000,000
10,000,000 Ohio County, Kentucky, Pollution Control Revenue
Bonds, Big Rivers Electric Corp., (AMBAC), 3.050%,
10/01/2015+.......................................... 10,000,000
FIRST NATIONAL BANK OF CHICAGO
47,220,000 Coastal Bend Health Facilities Development Corp.,
Texas, Incarnate Health System, 3.000%, 08/15/2027+.. 47,220,000
FIRST UNION NATIONAL BANK
10,200,000 Wake County, North Carolina, Industrial Facilities &
Pollution Control Financing Authority Revenue Bonds,
Carolina Power & Light Co., Series 1985-B,
2.950%, 09/01/2015+.................................. 10,200,000
12,900,000 Wake County, North Carolina, Industrial Facilities &
Pollution Control Financing Authority Revenue Bonds,
Carolina Power & Light Co., Series 1985-C,
2.950%, 10/01/2015+.................................. 12,900,000
KREDIETBANK, N.V.
14,795,000 Illinois Health Facilities Authority Revenue Bonds,
Memorial Medical Center, Series C, 3.000%,
01/01/2016+.......................................... 14,795,000
</TABLE>
See Notes to Financial Statements
12
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments March 31, 1999
Tax-Exempt Money Fund -- (continued)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(continued)
LANDESBANK HESSEN-THURINGEN
$10,100,000 Washington State, General Obligation Bonds, Series VR
96B,
2.900%, 06/01/2020+.................................. $10,100,000
LASALLE NATIONAL BANK
16,500,000 Flint, Michigan, Hospital Building Authority Revenue
Bonds, Hurley Medical Center, Series B, 3.000%,
07/01/2015+.......................................... 16,500,000
14,000,000 Illinois Health Facilities Authority Revenue Bonds,
Ingalls Memorial Hospital,
Series B, 2.950%, 01/01/2016+........................ 14,000,000
7,165,000 Illinois Health Facilities Authority Revenue Bonds,
Ingalls Memorial Hospital,
Series C, 2.950%, 01/01/2016+........................ 7,165,000
MORGAN GUARANTY TRUST
11,300,000 Chicago, Illinois, General Obligation Bonds, 2.850%,
01/31/2000+.......................................... 11,300,000
6,900,000 Kenton County, Kentucky, Industrial Building Revenue
Bonds, Redken Labs, Inc. Project, Series 1984,
2.800%, 12/01/2014+.................................. 6,900,000
5,950,000 Maricopa County, Arizona, Pollution Control Revenue
Bonds, Arizona Public Services Co., Series B,
3.200%, 05/01/2029+.................................. 5,950,000
12,100,000 New York City, New York, General Obligation Bonds,
Series E5,
3.050%, 08/01/2016+.................................. 12,100,000
MORGAN GUARANTY TRUST/CANADIAN IMPERIAL BANK/SOCIETE
GENERALE
13,000,000 District of Columbia, Tax & Revenue Anticipation
Notes, Series B,
3.750%, 09/30/1999................................... 13,055,748
NATIONSBANK N.A.
1,700,000 Greensboro, North Carolina, Enterprise Systems
Revenue Bonds, Series B,
2.950%, 06/01/2024+.................................. 1,700,000
NORDDUETSCHE LANDESBANK
14,950,000 Brazos, Texas, Harbor Industrial Development Corp.
Revenue Bonds, Badische Corp., 2.900%, 12/01/2013+... 14,950,000
NORTHERN TRUST
25,325,000 Illinois Health Facilities Authority Revenue Bonds,
Healthcorp Affiliates, Series A, 2.900%, 11/01/2015+. 25,325,000
1,000,000 Purdue University, Indiana, University Revenue Bonds,
Student Fee, Series O, 2.900%, 07/01/2019+........... 1,000,000
RABOBANK NEDERLANDER
16,100,000 Illinois Health Facilities Authority Revenue Bonds,
Healthcorp Affiliates, Series B, 2.900%, 11/01/2015+. 16,100,000
13,125,000 Mississippi Hospital Equipment & Facilities Authority
Revenue Bonds, Mississippi Baptist Medical Center,
3.000%, 07/01/2012+.................................. 13,125,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(continued)
TENNESSEE CONSUMER RETIREMENT SYSTEMS
$21,300,000 Tennessee State, Bond Anticipation Notes, Series A,
3.100%, 07/02/2001+................................ $ 21,300,000
TORONTO DOMINION BANK, LTD.
2,000,000 Wisconsin State Health Facilities Authority Revenue
Bonds, Franciscan Health Care, Series A2, 3.050%,
01/01/2016+........................................ 2,000,000
UNION BANK OF SWITZERLAND/MORGAN GUARANTY TRUST
13,200,000 Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds, Carnegie Mellon
University, Series D, 3.050%, 11/01/2030+.......... 13,200,000
WACHOVIA BANK
27,000,000 Baltimore, Maryland, Port Facilities Revenue Bonds,
Occidental Petroleum, Series 1981, 3.000%,
10/14/2011+........................................ 27,000,000
WESTDUETSCHE LANDESBANK/CREDIT LOCAL DE
FRANCE/LANDESBANK HESSEN-THURINGEN
40,000,000 Suffolk County, New York, Tax Anticipation Notes,
Series I,
3.500%, 08/12/1999................................. 40,138,216
------------
507,293,964
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $1,498,524,698*)........................... 99.70% $1,498,524,698
OTHER ASSETS & LIABILITIES (NET)............... 0.30 4,544,557
------ --------------
NET ASSETS..................................... 100.00% $1,503,069,255
====== ==============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes
+ Variable rate demand bonds and notes are payable upon not more than seven
business days notice.
AMBAC--American Municipal Bond Assurance Corp.
Note:
These municipal securities meet the three highest ratings assigned by Moody's
Investors Services, Inc. or Standard and Poor's Corporation or, where not
rated, are determined by the Investment Adviser, under the supervision of the
Board of Directors, to be of comparable quality at the time of purchase to
rated instruments that may be acquired by the Fund.
At March 31, 1999, approximately, 34% of the net assets are invested in
municipal securities that have letter of credit enhancement features or
escrows in U.S. Government securities backing them, which the Fund relies on.
Without such features, the securities may or may not meet the quality
standards of securities purchased by the Fund.
At March 31, 1999, approximately, 24% and 14% of the net assets are invested
in Texas and New York municipal securities, respectively. Economic changes
affecting the state and certain of its public bodies and municipalities may
affect the ability of issuers to pay the required principal and interest
payments of the municipal securities.
See Notes to Financial Statements
13
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments March 31, 1999
New York Tax-Exempt Money Fund
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- 66.35%
$10,000,000 Guam Power Authority, Commercial Paper, 2.650%,
04/01/1999.......................................... $ 10,000,000
10,000,000 Long Island Power Authority, New York, Electric
Systems, Commercial Paper, 3.000%, 04/19/1999....... 10,000,000
10,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper, 2.550%, 05/11/1999................ 10,000,000
5,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper, 2.600%, 05/14/1999................ 5,000,000
10,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper, 2.700%, 07/14/1999................ 10,000,000
3,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper, 2.750%, 05/12/1999................ 3,000,000
7,000,000 Nassau County, New York, Bond Anticipation Notes,
Series A, 3.625%, 08/17/1999........................ 7,017,924
10,500,000 Nassau County, New York, Bond Anticipation Notes,
Series B, 3.500%, 08/18/1999........................ 10,518,235
7,933,000 Nassau County, New York, Bond Anticipation Notes,
Series E, 4.000%, 05/18/1999........................ 7,940,374
2,100,000 New York City, New York, City Municipal Water
Financing Authority, Water & Sewer Systems
Commercial Paper, 2.950%, 04/19/1999................ 2,100,000
10,000,000 New York City, New York, City Municipal Water
Financing Authority, Water & Sewer Systems
Commercial Paper, 3.100%, 04/21/1999................ 10,000,000
4,000,000 New York City, New York, General Obligation
Commercial Paper, 3.100%, 04/20/1999................ 4,000,000
10,000,000 New York City, New York, Housing Development
Corporation Multifamily Rent Housing Revenue Bonds,
Parkgate Development, 2.800%, 10/15/2028+........... 10,000,000
1,845,000 New York State Dormitory Authority, Columbia
University Commercial Paper, 2.550%, 05/12/1999..... 1,845,000
5,000,000 New York State Dormitory Authority, Commercial
Paper,
2.800%, 06/10/1999.................................. 5,000,000
19,000,000 New York State Dormitory Authority, Commercial
Paper,
2.910%, 04/06/1999.................................. 19,000,000
3,000,000 New York State Dormitory Authority, Commercial
Paper,
3.000%, 08/11/1999.................................. 3,000,000
8,000,000 New York State Dormitory Authority, Commercial
Paper,
3.100%, 04/12/1999.................................. 8,000,000
10,700,000 New York State Dormitory Authority, Rockefeller
University Revenue Bonds, Series A, 2.750%,
07/01/2014+......................................... 10,700,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$ 1,500,000 New York State Dormitory Authority, Sloan Kettering
Cancer Center,
2.650%, 04/12/1999................................. $ 1,500,000
2,000,000 New York State Environmental Facilities, Commercial
Paper,
2.550%, 05/12/1999................................. 2,000,000
3,000,000 New York State Environmental Facilities, Commercial
Paper,
2.750%, 07/20/1999................................. 3,000,000
15,000,000 New York State Power Authority General Purpose
Revenue Bonds,
3.000%, 05/03/1999................................. 15,000,000
5,000,000 New York State Thruway Authority Highway & Bridge
Revenue Bonds, Series A, (AMBAC),
4.750%, 04/01/1999................................. 5,000,000
6,500,000 Puerto Rico Commonwealth, Tax & Revenue
Anticipation Notes, Series A, 3.500%, 07/30/1999... 6,516,344
2,500,000 Puerto Rico Government Development Bank, 2.800%,
04/01/1999......................................... 2,500,000
4,300,000 Puerto Rico Government Development Bank, 2.850%,
04/07/1999......................................... 4,300,000
3,404,000 Puerto Rico Government Development Bank, 2.950%,
06/10/1999......................................... 3,404,000
1,000,000 Rochester, New York, General Obligation Bonds,
4.000%, 10/01/1999................................. 1,005,282
11,500,000 Westchester County, New York, Healthcare System
Commercial Paper, 2.900%, 04/09/1999............... 11,500,000
------------
202,847,159
------------
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
33.26%
BANK OF NOVA SCOTIA
3,000,000 New York State Local Government Assistance
Corporation, Series G, 2.700%, 04/01/2025+......... 3,000,000
6,300,000 Suffolk County, New York, Water Authority Bond
Anticipation Notes, 2.800%, 11/01/2002+............ 6,300,000
BANKERS TRUST COMPANY
1,500,000 Dutchess County, New York, Industrial Development
Agency Revenue Bonds, Toys R Us--NYTEX, Inc.
Project, 3.125%, 11/01/2019+....................... 1,500,000
BAYERISCHE LANDESBANK/
WESTDEUTSCHE LANDESBANK
4,600,000 New York State Local Government Assistance Corp.,
Revenue Bonds, Series A, 2.800%, 04/01/2022+....... 4,600,000
CREDIT LOCAL DE FRANCE
6,800,000 Niagara Falls, New York, Bridge Common Toll Revenue
Bonds, Series A, (FGIC), 2.750%, 10/01/2019+....... 6,800,000
4,200,000 Yonkers, New York, Industrial Development Agency,
Civic Facility Revenue Bonds, Consumers Union
Facility, 2.800%, 07/01/2019+...................... 4,200,000
</TABLE>
See Notes to Financial Statements
14
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments March 31, 1999
New York Tax-Exempt Money Fund -- (continued)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(continued)
CREDIT SUISSE
$ 9,000,000 New York City, New York, City Treasures Cultural
Reserve, American Museum of National History Revenue
Bonds, Series B, (MBIA), 2.750%, 04/01/2021+........ $ 9,000,000
FIRST NATIONAL BANK OF CHICAGO
9,000,000 New York City, New York, Transitional Finance
Authority, Series B2,
2.900%, 11/01/2026+................................. 9,000,000
5,000,000 New York City, New York, Transitional Finance
Authority, Series B3,
3.000%, 11/01/2028+................................. 5,000,000
LANDESBANK HESSEN-THURINGEN
3,000,000 Buffalo, New York, General Obligation Revenue
Anticipation Notes, Series A, 3.750%, 07/27/1999.... 3,007,110
1,100,000 Municipal Assistance Corporation for the City of New
York, Revenue Bonds, Subseries K3, 3.150%,
07/01/2008+......................................... 1,100,000
MORGAN GUARANTY TRUST
11,100,000 New York City, New York, General Obligation Bonds,
Subseries F6, 2.800%, 02/15/2018+................... 11,100,000
1,000,000 New York City, New York, General Obligation Bonds,
Subseries E3, 2.650%, 08/01/2023+................... 1,000,000
SOCIETE GENERALE
8,700,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Orange &
Rockland Utilities, Series A, (AMBAC), 2.750%,
08/01/2015+......................................... 8,700,000
12,600,000 New York State Local Government Assistance Corp.,
Series D, 2.850%, 04/01/2025+....................... 12,600,000
STATE STREET BANK & TRUST
1,400,000 New York City, New York, General Obligation Bonds,
Subseries E4, 3.250%, 08/01/2022+................... 1,400,000
TORONTO DOMINION BANK
2,260,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Niagara
Mohawk Corp. Project, Series A, 2.950%, 03/01/2027+. 2,260,000
UNION BANK OF SWITZERLAND
2,100,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Central
Hudson Gas & Electric, Series B,
2.950%, 06/01/2027+................................. 2,100,000
WESTDUETSCHE LANDESBANK
4,000,000 Municipal Assistance Corporation for the City of New
York, Revenue Bonds, Subseries K1, 3.150%,
07/01/2008+......................................... 4,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(continued)
WESTDUETSCHE LANDESBANK/CREDIT LOCAL DE
FRANCE/LANDESBANK HESSEN-THURINGEN
$ 5,000,000 Suffolk County, New York, Tax Anticipation Notes,
Series I, 3.500%, 08/12/1999....................... $ 5,012,025
------------
$101,679,135
------------
<CAPTION>
Shares
------
<C> <S> <C>
OTHER INVESTMENTS -- 0.15%
447,000 Provident Institutional New York Tax-Exempt Money
Fund............................................... 447,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $304,973,294*)..................................... 99.76% $304,973,294
OTHER ASSETS & LIABILITIES (NET)......................... 0.24 746,013
------ ------------
NET ASSETS............................................... 100.00% $305,719,307
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Variable rate demand bonds and notes are payable upon not more than seven
business days notice.
AMBAC--American Municipal Bond Assurance Corp.
FGIC--Financial Guaranty Insurance Corp.
MBIA--Municipal Bond Insurance Assoc.
Note:
These municipal securities meet the three highest ratings assigned by Moody's
Investors Services, Inc. or Standard and Poor's Corporation or, where not
rated, are determined by the Investment Adviser, under the supervision of the
Board of Directors, to be of comparable quality at the time of purchase to
rated instruments that may be acquired by the Fund.
At March 31, 1999, approximately, 33% of the net assets are invested in
municipal securities that have letter of credit enhancement features or
escrows in U.S. Government securities backing them, which the Fund relies on.
Without such features, the securities may or may not meet the quality
standards of securities purchased by the Fund.
At March 31, 1999, approximately, 91% of the net assets are invested in New
York municipal securities. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers to pay
the required principal and interest payments of the municipal securities.
See Notes to Financial Statements
15
<PAGE>
EXCELSIOR FUNDS, INC.
EXCELSIOR TAX-EXEMPT FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies
Excelsior Funds, Inc. ("Excelsior Fund") and Excelsior Tax-Exempt Funds,
Inc. ("Excelsior Tax-Exempt Fund" and collectively with Excelsior Fund, the
"Funds") were incorporated under the laws of the State of Maryland on August
2, 1984 and August 8, 1984, respectively, and are registered under the
Investment Company Act of 1940, as amended, as open-end management investment
companies.
Excelsior Fund and Excelsior Tax-Exempt Fund currently offer shares in
eighteen and seven managed investment portfolios, respectively, each having
its own investment objectives and policies. The following is a summary of
significant accounting policies for Treasury Money Fund, Government Money Fund
and Money Fund, portfolios of Excelsior Fund, Tax-Exempt Money Fund and New
York Tax-Exempt Money Fund, portfolios of Excelsior Tax-Exempt Fund (the
"Portfolios"). Such policies are in conformity with generally accepted
accounting principles and are consistently followed by the Funds in the
preparation of the financial statements. Generally accepted accounting
principles require management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual
results could differ from these estimates. New York Tax-Exempt Money Fund
commenced operations on August 3, 1998. The financial statements for the
remaining portfolios of the Funds are presented separately.
With regard to the Portfolios, it is the Funds' policy, to the extent
possible, to maintain a continuous net asset value per share of $1.00. Each of
the Portfolios has adopted certain investment portfolio, valuation and
dividend distribution policies to enable it to do so. However, there can be no
assurance that the net asset value per share of the Portfolios will not vary.
(a) Portfolio Valuation:
Securities are valued at amortized cost, which has been determined by
each Fund's Board of Directors to represent the fair value of the
Portfolios' investments. Amortized cost valuation involves valuing an
instrument at its cost initially and, thereafter, assuming a constant
amortization to maturity of any discount or premium.
(b) Security transactions and investment income:
Security transactions are recorded on a trade date basis. Realized gains
and losses on investments sold are recorded on the basis of identified
cost. Interest income, adjusted for amortization of premiums and, when
appropriate, discounts on investments, is earned from settlement date and
is recorded on the accrual basis.
(c) Repurchase agreements:
Excelsior Fund may purchase portfolio securities from financial
institutions deemed to be creditworthy by the investment adviser subject to
the seller's agreement to repurchase and Excelsior
16
<PAGE>
Fund's agreement to resell such securities at mutually agreed upon prices.
Securities purchased subject to such repurchase agreements are deposited
with Excelsior Fund's custodian or sub-custodian or are maintained in the
Federal Reserve/Treasury book-entry system and must have, at all times, an
aggregate market value not less than the repurchase price (including
accrued interest).
If the value of the underlying security falls below the value of the
repurchase price, Excelsior Fund will require the seller to deposit
additional collateral by the next business day. Default or bankruptcy of
the seller may, however, expose the applicable Portfolio of Excelsior Fund
to possible delay in connection with the disposition of the underlying
securities or loss to the extent that proceeds from a sale of the
underlying securities were less than the repurchase price under the
agreement.
(d) Dividends and distributions to shareholders:
Net investment income dividends are declared daily and paid monthly. Net
realized capital gains, unless offset by any available capital loss
carryforward, are distributed to shareholders annually or more frequently
to maintain a net asset value of $1.00 per share.
Dividends and distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
deferral of losses on wash sales and net capital losses incurred after
October 31 and within the taxable year ("Post-October losses").
In order to avoid a Federal excise tax, each Portfolio is required to
distribute certain minimum amounts of net realized capital gain and net
investment income for the respective periods ending October 31 and December
31 in each calendar year.
(e) Federal taxes:
It is the policy of the Funds that each Portfolio continue to qualify as
a regulated investment company, if such qualification is in the best
interest of the shareholders, by complying with the requirements of the
Internal Revenue Code applicable to regulated investment companies, and by
distributing substantially all of its taxable earnings to its shareholders.
At March 31, 1999, the following Portfolios had approximate capital loss
carryforwards for Federal tax purposes available to offset future net
capital gains through the indicated expiration dates:
<TABLE>
<CAPTION>
Expiration Date March 31,
-------------------------------------------------------
2001 2002 2003 2004 2005 2006 2007 Total
------- ------- ------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Government Money Fund... $10,000 -- $48,000 $ 1,000 -- $ 6,000 $ 3,000 $ 68,000
Money Fund.............. -- -- 21,000 21,000 $12,000 -- -- 54,000
Tax-Exempt Money Fund... 18,000 $31,000 -- -- 51,000 35,000 27,000 162,000
</TABLE>
To the extent that such carryforwards are utilized, no capital gain
distributions will be made. During the year ended March 31, 1999, the Money
Fund utilized capital loss carryforwards for Federal tax purposes totaling
approximately $4,000.
17
<PAGE>
Post-October losses are deemed to arise on the first business day of a
Portfolio's next taxable year. The Government Money Fund incurred, and
elected to defer, net capital losses of approximately $19,000 for the year
ended March 31, 1999.
(f) Expense Allocation:
Expenses directly attributable to a Portfolio are charged to that
Portfolio. Other expenses are allocated to the respective Portfolios based
on average daily net assets.
2. Investment Advisory Fee, Administration Fee and Related Party Transactions
United States Trust Company of New York ("U.S. Trust NY") and U.S. Trust
Company of Connecticut ("U.S. Trust CT" and, collectively with U.S. Trust NY,
"U.S. Trust") serve as the investment adviser to the Portfolios. For the
services provided pursuant to the Investment Advisory Agreements, U.S. Trust
is entitled to receive a fee, computed daily and paid monthly, at the annual
rates of .25% of the average daily net assets of the Government Money Fund,
the Money Fund and the Tax-Exempt Money Fund, .30% of the average daily net
assets of the Treasury Money Fund, and .50% of the average daily net assets of
the New York Tax-Exempt Money Fund. U.S. Trust NY and U.S. Trust CT are
wholly-owned subsidiaries of U.S. Trust Corporation, a registered bank holding
company.
U.S. Trust CT, Chase Global Funds Services Company, a corporate affiliate of
The Chase Manhattan Bank, and Federated Administrative Services (collectively,
the "Administrators") provide administrative services to the Funds. For the
services provided to the Portfolios, the Administrators are entitled jointly
to annual fees, computed daily and paid monthly, based on the combined
aggregate average daily net assets of Excelsior Fund, Excelsior Tax-Exempt
Fund and Excelsior Institutional Trust (excluding the international equity
portfolios of Excelsior Fund and Excelsior Institutional Trust), all of which
are affiliated investment companies, as follows: .200% of the first $200
million, .175% of the next $200 million, and .150% over $400 million.
Administration fees payable by each Portfolio of the three investment
companies are determined in proportion to the relative average daily net
assets of the respective Portfolios for the period paid. For the year ended
March 31, 1999, administration fees charged by U.S. Trust CT were as follows:
<TABLE>
<S> <C>
Treasury Money Fund.............................................. $192,708
Government Money Fund............................................ 232,413
Money Fund....................................................... 275,526
Tax-Exempt Money Fund............................................ 524,126
New York Tax-Exempt Money Fund................................... 62,261
</TABLE>
From time to time, as they may deem appropriate in their sole discretion,
U.S. Trust and the Administrators may undertake to waive a portion or all of
the fees payable to them and also may reimburse the Portfolios for a portion
of other expenses. In addition, until further notice to Excelsior Tax-Exempt
Fund, U.S. Trust intends to voluntarily waive fees and reimburse expenses to
the extent necessary for New York Tax-Exempt Money Fund to maintain an annual
expense ratio of not more than .60%. For the year ended March 31, 1999, U.S.
Trust waived investment advisory fees totaling $284,204 and U.S. Trust
reimbursed expenses totaling $240,438 for New York Tax-Exempt Money Fund
pursuant to this voluntary limitation.
18
<PAGE>
The Funds have also entered into administrative servicing agreements with
various service organizations (which may include affiliates of U.S. Trust)
requiring them to provide administrative support services to their customers
owning shares of the Portfolios. As a consideration for the administrative
services provided by each service organization to its customers, each
Portfolio will pay the service organization an administrative service fee at
the annual rate of up to .40% of the average daily net asset value of its
shares held by the service organization's customers. Such services may include
assisting in processing purchase, exchange and redemption requests;
transmitting and receiving funds in connection with customer orders to
purchase, exchange or redeem shares; and providing periodic statements.
Administrative service fees paid to affiliates of U.S. Trust amounted to
$1,528,490 for the year ended March 31, 1999. Until further notice to the
Funds, U.S. Trust and the Administrators have voluntarily agreed to waive
investment advisory and administration fees payable by each Portfolio in an
amount equal to the administrative service fees payable (including fees paid
to affiliates of U.S. Trust) by such Portfolio. For the year ended March 31,
1999, U.S. Trust and the Administrators waived investment advisory and
administration fees in amounts equal to the administrative service fees for
the Portfolios as set forth below:
<TABLE>
<CAPTION>
U.S. Trust Administrators
---------- --------------
<S> <C> <C>
Treasury Money Fund.............................. $151,843 --
Government Money Fund............................ 184,188 $172
Money Fund....................................... 358,360 11
Tax-Exempt Money Fund............................ 827,107 --
New York Tax-Exempt Money Fund................... 7,879 --
</TABLE>
Edgewood Services, Inc. ("the Distributor"), a wholly-owned subsidiary of
Federated Investors, Inc., serves as the sponsor and distributor of the Funds.
Shares of each Portfolio are sold without a sales charge on a continuous basis
by the Distributor.
Each Director of the Funds receives an annual fee of $9,000, plus a meeting
fee of $1,500 for each meeting attended, and is reimbursed for expenses
incurred for attending meetings. The Chairman receives an additional annual
fee of $5,000.
3. Common Stock:
Excelsior Fund has authorized capital of 35 billion shares of Common Stock,
26.375 billion of which is currently classified to represent interests in one
of eighteen separate investment portfolios. Excelsior Tax-Exempt Fund has
authorized capital of 14 billion shares of Common Stock, 13 billion of which
is currently classified to represent interests in one of seven separate
investment portfolios. Authorized capital currently classified for each
Portfolio is as follows: 2 billion shares each of the Treasury Money Fund, the
Government Money Fund, the Money Fund, the Tax-Exempt Money Fund and the New
York Tax-Exempt Money Fund.
19
<PAGE>
Each share has a par value of $.001 and represents an equal proportionate
interest in the particular Portfolio with other shares of the same Portfolio,
and is entitled to such dividends and distributions of taxable earnings on the
assets belonging to such Portfolio as are declared at the discretion of each
Fund's Board of Directors. Since the Portfolios have sold, reinvested and
redeemed shares only at a constant net asset value of $1.00 per share, the
number of shares represented by such sales, reinvestments and redemptions is
the same as the amounts shown below for such transactions.
<TABLE>
<CAPTION>
Treasury Money Fund
--------------------------------
Year Ended Year Ended
03/31/99 03/31/98
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 2,679,518,952 $ 2,515,769,963
Issued as reinvestment of dividends........... 3,026,464 1,959,784
Redeemed...................................... (2,658,004,724) (2,397,183,732)
--------------- ---------------
Net Increase.................................. $ 24,540,692 $ 120,546,015
=============== ===============
<CAPTION>
Government Money Fund
--------------------------------
Year Ended Year Ended
03/31/99 03/31/98
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 4,372,983,435 $ 4,837,865,828
Issued as reinvestment of dividends........... 1,710,757 1,392,643
Redeemed...................................... (4,332,961,570) (4,772,966,563)
--------------- ---------------
Net Increase.................................. $ 41,732,622 $ 66,291,908
=============== ===============
<CAPTION>
Money Fund
--------------------------------
Year Ended Year Ended
03/31/99 03/31/98
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 4,459,113,083 $ 2,611,474,493
Issued as reinvestment of dividends........... 5,478,185 4,120,591
Redeemed...................................... (4,149,800,055) (2,454,801,619)
--------------- ---------------
Net Increase.................................. $ 314,791,213 $ 160,793,465
=============== ===============
<CAPTION>
Tax-Exempt Money Fund
--------------------------------
Year Ended Year Ended
03/31/99 03/31/98
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 5,351,039,833 4,454,235,468
Issued as reinvestment of dividends........... 2,425,946 1,926,989
Redeemed...................................... (5,246,893,150) (4,129,293,577)
--------------- ---------------
Net Increase.................................. $ 106,572,629 $ 326,868,880
=============== ===============
</TABLE>
<TABLE>
<CAPTION>
New York Tax-Exempt Money Fund
------------------------------
08/03/98*- 03/31/99
----------------------------------
<S> <C> <C>
Sold......................................... $ 886,545,150
Issued as reinvestment of dividends.......... 165,634
Redeemed..................................... (580,991,477)
-------------
Net Increase................................. $ 305,719,307
=============
</TABLE>
- --------
* Commencement of operations
20
<PAGE>
4. Line of Credit:
The Portfolios and other affiliated funds participate in a $250 million
unsecured line of credit provided by a syndication of banks under a line of
credit agreement. Borrowings may be made to temporarily finance the repurchase
of Portfolio shares. Interest is charged to each Portfolio, based on its
borrowings, at a rate equal to the Federal Funds Rate plus 2% per year. In
addition, a commitment fee, based on the average daily unused portion of the
line of credit, is allocated among the participating Portfolios at the end of
each quarter. For the year ended March 31, 1999, the Portfolios had no
borrowings under the agreement.
5. Year 2000 Risk (Unaudited):
Like other investment companies, financial and business organizations and
individuals around the world, the Portfolios could be affected adversely if
the computer systems used by the investment managers and the Portfolios' other
service providers do not properly process and calculate date-related
information and data from and after January 1, 2000. This is commonly known as
the "Year 2000 Problem." The investment managers and the Portfolios' other
service providers have informed the Funds that they are taking steps to
address the Year 2000 Problem with respect to the computer systems that they
use. Currently, they do not anticipate that the transition to the 21st Century
will have any material impact on their ability to continue to service the
Portfolios at current levels. At this time, however, there can be no assurance
that their efforts will be sufficient to avoid any adverse impact on the
Portfolios as a result of the Year 2000 Problem.
21
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Shareholders
and Boards of Directors of
Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc.
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of the Treasury Money, Government
Money, Money, Tax-Exempt Money and New York Tax-Exempt Money (three of the
portfolios constituting the Excelsior Funds, Inc. and two of the portfolios
constituting the Excelsior Tax-Exempt Funds, Inc. (collectively, the "Fund"))
as of March 31, 1999, and the related statements of operations for the period
then ended, the statements of changes in net assets and the financial
highlights for each of the periods indicated therein. 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 generally accepted auditing
standards. 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 as of
March 31, 1999, 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
above mentioned Portfolios of Excelsior Funds, Inc. and Excelsior Tax-Exempt
Funds, Inc. at March 31, 1999, the results of their operations for the period
then ended, the changes in their net assets and the financial highlights for
each of the periods indicated therein, in conformity with generally accepted
accounting principles.
(SIGNATURE OF ERNST & YOUNG LLP APPEARS HERE)
Boston, Massachusetts
May 7, 1999
- --------------------------------------------------------------------------------
Federal Tax Information: (Unaudited)
For the year ended March 31, 1999, the percentage of income earned from
direct treasury obligations was as follows:
<TABLE>
<CAPTION>
Interest
Earned
--------
<S> <C>
Treasury Money Fund................................................. 100.00%
Government Money Fund............................................... 53.88%
Money Fund.......................................................... 21.39%
Tax-Exempt Money Fund............................................... --
New York Tax-Exempt Money Fund...................................... --
</TABLE>
USTMMA399
22
