<PAGE>
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[LOGO FOR EXCELSIOR FUNDS APPEARS HERE]
Money Market
Portfolios
SEMI-ANNUAL REPORT
September 30, 1999
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
STATEMENTS OF ASSETS AND LIABILITIES...................................... 1
STATEMENTS OF OPERATIONS.................................................. 2
STATEMENTS OF CHANGES IN NET ASSETS....................................... 3
FINANCIAL HIGHLIGHTS--SELECTED PER SHARE DATA AND RATIOS.................. 4
PORTFOLIOS OF INVESTMENTS
Treasury Money Fund...................................................... 6
Government Money Fund.................................................... 7
Money Fund............................................................... 8
Tax-Exempt Money Fund.................................................... 9
New York Tax-Exempt Money Fund........................................... 12
NOTES TO FINANCIAL STATEMENTS............................................. 14
</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 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>
Excelsior Funds, Inc.
Statements of Assets and Liabilities
September 30, 1999 (Unaudited)
<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............ $405,551,993 $810,436,123 $1,034,211,519 $1,286,601,967 $319,123,377
============ ============ ============== ============== ============
Investments, at value
(Note 1).............. $405,551,993 $810,436,123 $1,034,211,519 $1,286,601,967 $319,123,377
Cash................... 131,202 212,691 59,910 98,326 82,144
Interest receivable.... 3,853,046 3,222,646 6,142,408 5,515,237 1,315,685
Prepaid expenses....... 2,478 4,966 2,951 5,515 115
------------ ------------ -------------- -------------- ------------
Total Assets........... 409,538,719 813,876,426 1,040,416,788 1,292,221,045 320,521,321
LIABILITIES:
Payable for dividends
declared.............. 1,783,272 3,615,192 4,244,093 3,194,981 708,752
Payable for investments
purchased............. -- -- -- 22,107,096 11,000,000
Investment advisory
fees payable (Note 2). 197,783 334,976 312,796 388,464 189,474
Administration fees
payable (Note 2)...... 77,433 138,455 165,453 227,482 48,268
Administrative
servicing fees payable
(Note 2).............. 18,359 34,654 83,930 140,553 3,695
Directors' fees payable
(Note 2).............. 3,922 5,265 5,877 22,374 3,959
Accrued expenses and
other payables........ 70,769 86,305 132,643 132,904 111,097
------------ ------------ -------------- -------------- ------------
Total Liabilities...... 2,151,538 4,214,847 4,944,792 26,213,854 12,065,245
------------ ------------ -------------- -------------- ------------
NET ASSETS.............. $407,387,181 $809,661,579 $1,035,471,996 $1,266,007,191 $308,456,076
============ ============ ============== ============== ============
NET ASSETS consist of:
Undistributed
(distributions in
excess of) net
investment income..... $ 8,337 $ (75) $ (17) $ 1,873 $ --
Accumulated net
realized gain (loss)
on investments........ 2,009 (87,275) (53,997) (118,914) (7,001)
Par value (Note 3)..... 407,380 809,784 1,035,697 1,266,375 308,463
Paid-in capital in
excess of par value... 406,969,455 808,939,145 1,034,490,313 1,264,857,857 308,154,614
------------ ------------ -------------- -------------- ------------
Total Net Assets........ $407,387,181 $809,661,579 $1,035,471,996 $1,266,007,191 $308,456,076
============ ============ ============== ============== ============
Shares of Common Stock
Outstanding (Note 3)... 407,379,999 809,783,930 1,035,696,672 1,266,374,873 308,463,077
NET ASSET VALUE PER
SHARE.................. $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
</TABLE>
See Notes to Financial Statements
1
<PAGE>
Excelsior Funds, Inc.
Statements of Operations
Six Months Ended September 30, 1999 (Unaudited)
<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........ $10,770,599 $20,085,554 $25,462,047 $21,636,781 $4,516,578
----------- ----------- ----------- ----------- ----------
EXPENSES:
Investment advisory
fees (Note 2)......... 674,530 977,586 1,234,937 1,704,862 720,019
Administration fees
(Note 2).............. 342,583 596,070 752,519 1,039,010 219,399
Custodian fees......... 62,338 108,313 160,136 174,871 37,442
Administrative
servicing fees (Note
2).................... 53,365 111,457 247,993 431,097 9,841
Legal and audit fees... 28,943 42,628 59,194 77,966 23,452
Directors' fees and
expenses (Note 2)..... 7,454 10,490 16,047 35,522 7,077
Registration and filing
fees.................. 7,971 8,549 9,837 7,082 4,468
Shareholder reports.... 6,730 12,266 16,197 23,448 5,762
Shareholder servicing
agent fees............ 5,822 7,411 32,204 11,905 2,691
Miscellaneous expenses. 15,766 36,897 69,923 77,710 22,178
----------- ----------- ----------- ----------- ----------
Total Expenses......... 1,205,502 1,911,667 2,598,987 3,583,473 1,052,329
Fees waived and
reimbursed by
investment adviser and
administrators (Note
2).................... (53,365) (111,457) (247,993) (431,097) (278,190)
----------- ----------- ----------- ----------- ----------
Net Expenses........... 1,152,137 1,800,210 2,350,994 3,152,376 774,139
----------- ----------- ----------- ----------- ----------
NET INVESTMENT INCOME... 9,618,462 18,285,344 23,111,053 18,484,405 3,742,439
----------- ----------- ----------- ----------- ----------
REALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain
(loss) on security
transactions.......... (15,854) (25) (187) 42,721 (7,001)
----------- ----------- ----------- ----------- ----------
Net increase in net
assets resulting from
operations............. $ 9,602,608 $18,285,319 $23,110,866 $18,527,126 $3,735,438
=========== =========== =========== =========== ==========
</TABLE>
See Notes to Financial Statements
2
<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>
Six Months Ended
September 30, 1999
(Unaudited)
Net investment income... $ 9,618,462 $ 18,285,344 $ 23,111,053 $ 18,484,405 $ 3,742,439
Net realized gain (loss)
on investments......... (15,854) (25) (187) 42,721 (7,001)
------------ ------------ -------------- -------------- ------------
Net increase in net
assets resulting from
operations............. 9,602,608 18,285,319 23,110,866 18,527,126 3,735,438
Distributions to
shareholders:
From net investment
income................ (9,618,462) (18,285,319) (23,111,053) (18,473,605) (3,742,439)
Increase (decrease) in
net assets from fund
share transactions
(Note 3)............... (86,813,814) 167,830,682 61,804,563 (237,115,585) 2,743,770
------------ ------------ -------------- -------------- ------------
Net increase (decrease)
in net assets.......... (86,829,668) 167,830,682 61,804,376 (237,062,064) 2,736,769
NET ASSETS:
Beginning of period.... 494,216,849 641,830,897 973,667,620 1,503,069,255 305,719,307
------------ ------------ -------------- -------------- ------------
End of period (1)...... $407,387,181 $809,661,579 $1,035,471,996 $1,266,007,191 $308,456,076
============ ============ ============== ============== ============
(1) Including
undistributed
(distributions in
excess of) net
investment income.. $ 8,337 $ (75) $ (17) $ 1,873 $ --
============ ============ ============== ============== ============
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 (2)........ $494,216,849 $641,830,897 $ 973,667,620 $1,503,069,255 $305,719,307
============ ============ ============== ============== ============
--------
(2) Including
undistributed
(distributions in
excess of) net
investment income.. $ 8,337 $ (100) $ (17) $ (8,927) $ --
============ ============ ============== ============== ============
--------
</TABLE>
* New York Tax-Exempt Money Fund commenced operations on August 3, 1998.
See Notes to Financial Statements
3
<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) --
Six Months Ended
September 30, 1999
(Unaudited)........... 1.00 0.02138 -- 0.02138 (0.02138) --
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) -- ++
Six Months Ended
September 30, 1999
(Unaudited)........... 1.00 0.02331 -- 0.02331 (0.02331) --
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) -- ++
Six Months Ended
September 30, 1999
(Unaudited)........... 1.00 0.02336 -- 0.02336 (0.02336) --
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)
Six Months Ended
September 30, 1999
(Unaudited)........... 1.00 0.01357 (0.00001) 0.01356 (0.01356) --
NEW YORK TAX-EXEMPT MONEY FUND -- (8/3/98*)
Period Ended March 31,
1999................... $1.00 $0.01711 -- $0.01711 $(0.01711) --
Six Months Ended
September 30, 1999
(Unaudited)........... 1.00 0.01297 -- 0.01297 (0.01297) --
</TABLE>
* Commencement of operations
** 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
4
<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
(0.02138) 1.00 4.29%** 407,387 0.51%** 0.54%** 4.28%** 0.00012
$(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
(0.02331) 1.00 4.70%** 809,662 0.46%** 0.49%** 4.68%** 0.00014
$(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
(0.02336) 1.00 4.72%** 1,035,472 0.48%** 0.53%** 4.68%** 0.00025
$(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
(0.01356) 1.00 2.72%** 1,266,007 0.46%** 0.53%** 2.71%** 0.00032
$(0.01711) $1.00 2.62%** $ 305,719 0.47%** 0.79%** 2.24%** $0.00219
(0.01297) 1.00 2.60%** 308,456 0.54%** 0.73%** 2.60%** 0.00096
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 1999 (Unaudited)
Treasury Money Fund
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- ------------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 97.52%
Federal Home Loan Bank
$ 47,000,000 10/01/99................................. 5.17% $ 47,000,000
Student Loan Marketing Association
5,000,000 02/22/00................................. 5.20# 5,004,801
45,000,000 03/16/00................................. 5.46# 45,000,000
U.S. Treasury Notes
200,000,000 12/31/99................................. 5.15 200,231,233
100,000,000 01/31/00................................. 5.19 100,048,347
------------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS (Cost $397,284,381).......... 397,284,381
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ ------------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 2.03%
8,267,612 Dreyfus Government Cash Management Fund
(Cost $8,267,612)............................ $ 8,267,612
------------
TOTAL INVESTMENTS (Cost $405,551,993*).................. 99.55% $405,551,993
OTHER ASSETS & LIABILITIES (NET)........................ 0.45 1,835,188
------ ------------
NET ASSETS.............................................. 100.00% $407,387,181
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities--rate disclosed is as of September 30,
1999.
See Notes to Financial Statements
6
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 1999 (Unaudited)
Government Money Fund
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- ------------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 98.61%
Federal Home Loan Bank
$312,000,000 10/01/99................................. 5.17% $312,000,000
25,000,000 02/24/00................................. 4.90 24,999,499
Student Loan Marketing Association
75,000,000 10/01/99................................. 5.18 75,000,000
30,900,000 11/01/99................................. 5.40# 30,898,851
125,000,000 11/10/99................................. 5.56# 125,006,668
75,000,000 11/16/99................................. 5.43 75,043,775
13,500,000 02/22/00................................. 5.20# 13,512,515
42,000,000 08/03/00................................. 5.56# 41,982,386
100,000,000 08/10/00................................. 5.52# 99,974,262
------------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS (Cost $798,417,956).......... 798,417,956
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ ------------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 1.48%
12,018,167 Dreyfus Government Cash Management Fund
(Cost $12,018,167).......................... $ 12,018,167
------------
TOTAL INVESTMENTS
(Cost $810,436,123*).................................... 100.09% $810,436,123
OTHER ASSETS & LIABILITIES (NET)........................ (0.09) (774,544)
------ ------------
NET ASSETS.............................................. 100.00% $809,661,579
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities--rate disclosed is as of September 30,
1999.
See Notes to Financial Statements
7
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 1999 (Unaudited)
Money Fund
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- --------------
<C> <S> <C> <C>
COMMERCIAL PAPER -- 56.78%
$ 50,000,000 American Express Co., 10/06/99......... 5.28% $ 50,000,000
50,000,000 Ameritech Corp., 10/05/99.............. 5.35 49,970,278
50,000,000 Chevron Corp.,
10/07/99............................... 5.33 50,000,000
50,000,000 Corporate Asset Funding Co.,
10/01/99............................... 5.60 50,000,000
50,000,000 Daimler Chrysler Corp., 10/06/99....... 5.27 50,000,000
50,000,000 Ford Motor Credit Co., 10/06/99........ 5.28 50,000,000
45,000,000 General Electric Capital Corp.,
10/06/99............................... 5.15 45,000,000
15,000,000 Hewlett Packard Co., 10/07/99.......... 5.32 14,986,700
30,000,000 KFW International Finance,
10/01/99............................... 5.50 30,000,000
50,000,000 Prudential Funding Corp., 10/07/99..... 5.33 50,000,000
50,000,000 Sears Roebuck & Co., 10/06/99.......... 5.30 50,000,000
50,000,000 Shell Oil Co.,
10/01/99............................... 5.45 50,000,000
48,000,000 Wal-Mart Stores, Inc., 10/01/99........ 5.55 48,000,000
--------------
TOTAL COMMERCIAL PAPER
(Cost $587,956,978).................... 587,956,978
--------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 30.11%
Federal Home Loan Bank
22,000,000 10/01/99............................... 5.17 22,000,000
Student Loan Marketing Association
50,000,000 01/12/00............................... 5.55# 49,994,355
89,820,000 02/11/00............................... 5.44# 89,842,473
50,000,000 03/23/00............................... 5.36# 50,000,000
100,000,000 08/10/00............................... 5.52# 99,974,262
--------------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS (Cost $311,811,090)........ 311,811,090
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- --------------
<C> <S> <C> <C>
CERTIFICATES OF DEPOSIT -- 7.73%
$40,000,000 Royal Bank of Canada, 03/22/00........... 5.15% $ 39,994,540
40,000,000 Toronto Dominion Bank, 02/22/00.......... 5.14 39,993,916
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $79,988,456)....................... 79,988,456
--------------
CORPORATE BONDS -- 4.35%
45,000,000 Merrill Lynch & Co., Inc., 10/4/1999
(Cost $45,001,050)....................... 5.82# 45,001,050
--------------
<CAPTION>
Shares
------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 0.91%
9,453,945 Dreyfus Government Cash Management Fund
(Cost $9,453,945)........................ 9,453,945
--------------
TOTAL INVESTMENTS
(Cost $1,034,211,519*)................................ 99.88% $1,034,211,519
OTHER ASSETS & LIABILITIES (NET)...................... 0.12 1,260,477
------ --------------
NET ASSETS............................................ 100.00% $1,035,471,996
====== ==============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities--rate disclosed is as of September 30,
1999.
See Notes to Financial Statements
8
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 1999 (Unaudited)
Tax-Exempt Money Fund
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- 53.26%
$ 8,000,000 Anne Arundel County, Maryland, Commercial Paper,
3.500%, 02/09/2000................................... $ 8,000,000
10,000,000 Burke County, Georgia, Development Authority,
Commercial Paper,
3.350%, 10/07/1999................................... 10,000,000
15,000,000 Burke County, Georgia, Development Authority,
Commercial Paper,
3.500%, 01/21/2000................................... 15,000,000
11,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
3.500%, 02/09/2000................................... 11,000,000
11,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
3.550%, 03/07/2000................................... 11,000,000
10,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
3.500%, 03/08/2000................................... 10,000,000
20,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper,
3.600%, 03/09/2000................................... 20,000,000
5,000,000 Hockley County, Texas, General Obligation Bonds,
3.600%, 03/01/2000................................... 5,000,000
10,000,000 Illinois Educational Facilities Authority Revenue
Notes, 3.400%, 11/10/1999............................ 10,000,000
15,000,000 Illinois Educational Facilities Authority Revenue
Notes, 3.750%, 02/08/2000............................ 15,000,000
12,500,000 Illinois Health Facilities Authority, Commercial
Paper, 3.650%, 02/16/2000............................ 12,500,000
10,600,000 Indianapolis, Indiana, Gas & Utilities Systems,
Commercial Paper,
3.550%, 03/07/2000................................... 10,600,000
11,000,000 Intermountain Power Agency, Utah,
3.500%, 11/17/1999................................... 11,000,000
25,000,000 Intermountain Power Agency, Utah,
3.500%, 02/10/2000................................... 25,000,000
20,000,000 Jacksonville, Florida, Pollution Control Refunding
Revenue Bonds, Florida Power & Light Co. Project,
3.400%, 02/11/2000................................... 20,000,000
7,700,000 Jasper County, Indiana, Commercial Paper, Northern
Indiana Public Services,
3.500%, 02/14/2000................................... 7,700,000
25,500,000 Kentucky Asset/Liability Fund, Commercial Paper,
3.500%, 11/10/1999................................... 25,500,000
11,000,000 Kentucky Asset/Liability Fund, Commercial Paper,
3.450%, 12/08/1999................................... 11,000,000
9,100,000 Long Island Power Authority, New York, Electric
Systems Revenue Bonds, Commercial Paper, 3.450%,
02/10/2000........................................... 9,100,000
20,000,000 Lower Colorado River Authority, Texas, Commercial
Paper, 3.400%, 11/16/1999............................ 20,000,000
7,000,000 Metropolitan Transit Authority, New York, Special
Obligation Bond Anticipation Notes, Series CP1,
3.500%, 01/20/2000................................... 7,000,000
10,000,000 Missouri Environmental Union Electric, 3.500%,
03/08/2000........................................... 10,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$10,000,000 Mobile, Alabama, General Obligation Commercial Paper,
3.500%, 02/17/2000................................... $10,000,000
12,000,000 Montgomery, Maryland, General Obligation Commercial
Paper,
3.250%, 11/10/1999................................... 12,000,000
11,300,000 New York State Environmental Commercial Paper,
3.300%, 11/17/1999................................... 11,300,000
40,600,000 New York State Power Authority & General Purpose
Revenue Bonds,
3.550%, 03/01/2000................................... 40,600,000
40,815,000 North Carolina Municipal Power Agency, Commercial
Paper, 3.700%, 10/08/1999............................ 40,815,000
27,500,000 Nueces River, Texas, San Miguel Electric Corp.,
Commercial Paper,
3.300%, 10/12/1999................................... 27,500,142
25,000,000 Nueces River, Texas, San Miguel Electric Corp.,
Commercial Paper,
3.300%, 10/13/1999................................... 25,000,126
23,700,000 Nueces River, Texas, San Miguel Electric Corp.,
Commercial Paper,
3.350%, 10/19/1999................................... 23,700,000
10,000,000 Omaha, Nebraska, Public Power District, Commercial
Paper, 3.600%, 03/06/2000............................ 10,000,000
10,250,000 Omaha, Nebraska, Public Power District, Commercial
Paper, 3.650%, 03/06/2000............................ 10,250,000
10,000,000 Petersburg, Indiana, Pollution Control Revenue,
Indiana Power and Light Co., Series B, (AMBAC),
3.800%, 01/01/2023+.................................. 10,000,000
6,500,000 Pleasant Prairie, Wisconsin, Pollution Control
Refunding Revenue Bonds, Wisconsin Electric Power
Co., Series A,
3.850%, 09/01/2030+.................................. 6,500,000
17,400,000 Salt River, Arizona, Electric & Gas Commercial Paper,
3.500%, 02/09/2000................................... 17,400,000
8,000,000 Salt River, Arizona, Electric & Gas Commercial Paper,
Series A,
3.500%, 02/10/2000................................... 8,000,000
10,000,000 Salt River, Arizona, Electric & Gas Commercial Paper,
3.500%, 02/18/2000................................... 10,000,000
15,000,000 Salt River, Arizona, Electric & Gas Commercial Paper,
3.600%, 03/06/2000................................... 15,000,000
40,000,000 San Antonio, Texas, Water Commercial Paper, 3.550%,
02/08/2000........................................... 40,000,000
20,000,000 Shelby County, Tennessee, Commercial Paper, 3.500%,
02/09/2000........................................... 20,000,000
10,000,000 Texas State, Public Finance Authority, Commercial
Paper, 3.750%, 02/07/2000............................ 10,000,000
15,000,000 Texas State, Tax & Revenue Anticipation Notes, Series
A, 4.500%, 08/31/2000................................ 15,103,399
19,638,000 Wisconsin State, General Obligation Commercial Paper,
3.600%, 03/10/2000................................... 19,638,000
7,081,000 Wisconsin State, General Obligation Commercial Paper,
Series A,
3.650%, 03/10/2000................................... 7,081,000
-----------
674,287,667
-----------
</TABLE>
See Notes to Financial Statements
9
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 1999 (Unaudited)
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 -- 48.37%
BANK OF AMERICA
$20,000,000 Des Moines, Iowa, Hospital Facilities Revenue Bonds,
Iowa Methodist Medical Center Project, 3.750%,
08/01/2015+.......................................... $20,000,000
20,000,000 Michigan Technological University Revenue Bonds,
Series A, (AMBAC),
3.750%, 10/01/2018+.................................. 20,000,000
BANK OF NEW YORK
12,500,000 Rockport, Indiana, Pollution Control Project,
(AMBAC), 3.750%, 06/01/2025+......................... 12,500,000
BANK OF TOKYO MITSUBISHI
13,080,000 University of Iowa, Facilities Revenue Bonds, Human
Biology Research, Series A, 4.650%, 06/01/2005+...... 13,080,000
BARCLAYS BANK, PLC
7,700,000 Bucks County, Pennsylvania, Industrial Development
Authority Revenue Bonds, Tru Realty--Toys R Us
Project,
3.300%, 12/01/2018+.................................. 7,700,000
BAYERISCHE LANDESBANK/CREDIT LOCAL DE FRANCE/CHASE
MANHATTAN BANK
18,238,000 Clark County, Nevada, Airport Improvement Revenue
Bonds, Series A, (MBIA), 3.650%, 07/01/2012+......... 18,238,000
BAYERISCHE LANDESBANK/ MORGAN GUARANTY TRUST
3,585,000 New York State Job Development Authority Revenue
Bonds, Series D1-16,
3.250%, 03/01/2000+.................................. 3,585,000
COMMERZBANK A.G.
25,000,000 Massachusetts State General Obligation, Commercial
Paper, Series A,
3.750%, 09/01/2016+.................................. 25,000,000
CREDIT LOCAL DE FRANCE
10,000,000 Birmingham, Alabama, Special Financing Authority,
Health Care Facilities, Series A, 3.650%,
09/01/2018+.......................................... 10,000,000
CS FIRST BOSTON
6,900,000 Garden City, Kansas, Industrial Development Revenue
Bonds, Inland Container Corp. Project, Temple
Series 1983,
3.350%, 01/01/2008+.................................. 6,900,000
48,050,000 Long Island Power Authority, New York, Electric
Systems Revenue Bonds, Series 7, (MBIA), 3.800%,
04/01/2025+.......................................... 48,050,000
25,000,000 Ohio County, Kentucky, Pollution Control Revenue
Bonds, Big Rivers Electric Corp., (AMBAC), 3.850%,
06/01/2013+.......................................... 25,000,000
10,000,000 Ohio County, Kentucky, Pollution Control Revenue
Bonds, Big Rivers Electric Corp., (AMBAC), 3.800%,
10/01/2015+.......................................... 10,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT -- (con-
tinued)
FIRST NATIONAL BANK
$ 6,330,000 Illinois Health Facilities Authority Revenue Bonds,
Dupage Center Healthcorp,
4.000%, 11/01/2020+.................................. $ 6,330,000
15,500,000 Illinois Health Facilities Authority Revenue Bonds,
Healthcorp Affiliates, Series B, 3.750%, 11/01/2015+. 15,500,000
25,000,000 Illinois Health Facilities Authority Revenue Bonds,
Resurrection Health, Series A, (FSA), 4.000%,
05/15/2029+.......................................... 25,000,000
33,100,000 Illinois Health Facilities Authority Revenue Bonds,
St. Lukes Medical Center, Series B, (MBIA), 3.750%,
11/15/2023+.......................................... 33,100,000
FIRST UNION NATIONAL BANK
10,200,000 Wake County, North Carolina, Industrial Facilities &
Pollution Control Financing Authority Revenue Bonds,
Carolina Power & Light Co., Series B,
3.700%, 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 C,
3.700%, 10/01/2015+.................................. 12,900,000
LANDESBANK HESSEN-THURINGEN
11,500,000 Washington State, General Obligation Bonds, Series
VR-96B, 3.700%, 06/01/2020+.......................... 11,500,000
LASALLE NATIONAL BANK
6,300,000 Flint, Michigan, Hospital Building Authority Revenue
Bonds, Hurley Medical Center, Series B, 3.750%,
07/01/2015+.......................................... 6,300,000
8,200,000 Illinois Health Facilities Authority Revenue Bonds,
Ingalls Memorial Hospital, Series B, 3.750%,
01/01/2016+.......................................... 8,200,000
13,265,000 Illinois Health Facilities Authority Revenue Bonds,
Ingalls Memorial Hospital, Series C, 3.750%,
01/01/2016+.......................................... 13,265,000
35,400,000 Illinois Health Facilities Authority Revenue Bonds,
Resurrection Health, Series B, (FSA), 3.800%,
05/15/2029+.......................................... 35,400,000
MORGAN GUARANTY TRUST
26,300,000 Chicago, Illinois, General Obligation Bonds, 2.850%,
01/31/2000+.......................................... 26,250,200
12,000,000 Detroit, Michigan, Sewage Disposal Revenue Bonds,
Series A, (MBIA),
3.150%, 07/01/2023+.................................. 12,000,000
6,900,000 Kenton County, Kentucky, Industrial Building Revenue
Bonds, Redken Labs, Inc. Project, Series 1984,
3.350%, 12/01/2014+.................................. 6,900,000
10,850,000 Missouri State Health & Educational Facilities
Washington University Project Authority Revenue,
3.750%, 09/01/2009+.................................. 10,850,000
10,000,000 New York State Dormitory Authority Revenue, Sloan
Memorial, 3.700%, 07/01/2026+........................ 10,000,000
</TABLE>
See Notes to Financial Statements
10
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 1999 (Unaudited)
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 -- (con-
tinued)
NATIONAL WESTMINSTER BANK
$ 6,060,000 Washoe County, Nevada, Gas & Water Facilities
Revenue Bonds, Series A14,
3.650%, 12/01/2014.................................. $ 6,060,000
NATIONSBANK N.A.
7,875,000 Greensboro, North Carolina, Enterprise Systems
Revenue Bonds, Series B,
3.700%, 06/01/2024+................................. 7,875,000
NORDDEUTSCHE LANDESBANK
14,950,000 Brazos, Texas, Harbor Industrial Development Corp.
Revenue Bonds, Badische Corp., 3.350%, 12/01/2013+.. 14,950,000
NORTHERN TRUST
7,425,000 Illinois Health Facilities Authority Revenue Bonds,
Healthcorp. Affiliates, Series A, 3.750%,
11/01/2015+......................................... 7,425,000
RABOBANK NEDERLANDER
9,125,000 Mississippi Hospital Equipment & Facilities
Authority Revenue Bonds, Mississippi Baptist Medical
Center, 3.750%, 07/01/2012+......................... 9,125,000
SOCIETE GENERALE
6,000,000 New York State Local Government Assistance
Corporation Revenue Bonds, Series D, 3.650%,
04/01/2025+......................................... 6,000,000
TENNESSEE CONSUMER RETIREMENT SYSTEMS
21,300,000 Tennessee State, Bond Anticipation Notes, Series A,
3.650%, 07/02/2001+................................. 21,300,000
TORONTO DOMINION BANK, LTD.
10,000,000 Massachusetts State General Obligation, Commercial
Paper, Series B,
3.750%, 09/01/2016+................................. 10,000,000
13,000,000 Utah State, General Obligation Commercial Paper,
Series A, 3.650%, 07/01/2016+....................... 13,000,000
22,400,000 Utah State, General Obligation Commercial Paper,
Series C, 3.750%, 07/01/2016+....................... 22,400,000
3,400,000 Wisconsin State Health Facilities Authority Revenue
Bonds, Franciscan Health Care, Series A2, 3.770%,
01/01/2016+......................................... 3,400,000
WACHOVIA BANK
27,000,000 Baltimore, Maryland, Port Facilities Revenue Bonds,
Occidental Petroleum, Series 1981, 3.350%,
10/14/2011+......................................... 27,000,000
-----------
612,283,200
-----------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ --------------
<C> <S> <C> <C>
OTHER INVESTMENTS --
0.00%
31,100 Provident
Tax-Exempt
Municipal
Fund........ $ 31,100
--------------
TOTAL INVESTMENTS
(Cost
$1,286,601,967*).. 101.63% $1,286,601,967
OTHER ASSETS & LI- (1.63)
ABILITIES (NET)... (20,594,776)
------ --------------
NET ASSETS........ 100.00% $1,266,007,191
====== ==============
</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.
FSA--Financial Security Assurance
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 September 30, 1999, approximately, 48% 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 September 30, 1999, approximately,18%,16% and11% of the net assets are
invested in Texas, Illinois 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
11
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 1999 (Unaudited)
New York Tax-Exempt Money Fund
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT -- 57.93%
BANK OF NEW YORK
$ 6,000,000 Nassau County, New York, Revenue Anticipation Notes,
4.250%, 03/15/2000................................... $ 6,017,258
4,700,000 New York City, New York, Industrial Development
Agency, Civic Facility Revenue Bonds, Children's
Oncology Society, 3.650%, 05/01/2021+................ 4,700,000
BANK OF NOVA SCOTIA
5,700,000 Suffolk County, New York, Water Authority Bond
Anticipation Notes,
3.65%, 11/01/2002+................................... 5,700,000
BANKERS TRUST COMPANY
1,500,000 Dutchess County, New York, Industrial Development
Agency Revenue Bonds, Toys R Us-NYTEX, Inc. Project,
3.875%, 11/01/2019+.................................. 1,500,000
BAYERISCHE LANDESBANK
3,900,000 New York City, New York, General Obligation Bonds,
Series F5, 3.650%, 02/15/2016+....................... 3,900,000
10,350,000 Port Authority of New York & New Jersey, Special
Obligation Bonds, Versatile Structure, 3.850%,
08/01/2024+.......................................... 10,350,000
BAYERISCHE LANDESBANK/
MORGAN GUARANTY TRUST
7,485,000 New York State Job Development Authority Revenue
Bonds, Series C1-34,
3.050%, 03/01/2000+.................................. 7,485,000
BAYERISCHE LANDESBANK/
WESTDEUTSCHE LANDESBANK
1,400,000 Long Island Power Authority, New York, Electric
Systems Revenue, Series 1,
3.650%, 05/01/2033+.................................. 1,400,000
3,000,000 Long Island Power Authority, New York, Electric
Systems Revenue, Series 2,
3.750%, 05/01/2033+.................................. 3,000,000
8,945,000 New York State Local Government Assistance Corp.
Revenue Bonds, Series A,
3.650%, 04/01/2022+.................................. 8,945,000
CHASE MANHATTAN BANK
1,300,000 New York City, New York, City Treasures Cultural
Reserve, Jewish Museum of National History Revenue
Bonds,
3.600%, 12/01/2021+.................................. 1,300,000
15,900,000 New York City, New York, General Obligation Bonds,
Subseries B9,
3.650%, 08/15/2023+.................................. 15,900,000
3,700,000 New York State Housing Finance Agency, Mt. Sinai
Medical School, Revenue Bonds, Series A, 3.800%,
11/01/2014+.......................................... 3,700,000
COMMERZBANK A.G.
6,500,000 New York City, New York, General Obligation Bonds,
Subseries J2, 3.650%, 02/15/2016+.................... 6,500,000
8,000,000 New York City, New York, Health & Hospital Corporate
Revenue Health Systems, Series F, 3.700%,
02/15/2026+.......................................... 8,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(continued)
CREDIT LOCAL DE FRANCE
$ 6,800,000 Niagara Falls, New York, Bridge Common Toll Revenue
Bonds, Series A, (FGIC), 3.600%, 10/01/2019+........ $ 6,800,000
4,700,000 Yonkers, New York, Industrial Development Agency,
Civic Facility Revenue Bonds, Consumers Union
Facility,
3.650%, 07/01/2019+................................. 4,700,000
CREDIT SUISSE
11,300,000 New York City, New York, City Treasures Cultural
Reserve, American Museum of Natural History Revenue
Bonds, Series B, (MBIA), 3.600%, 04/01/2021+........ 11,300,000
FIRST NATIONAL BANK
9,000,000 New York City, New York, Transitional Finance
Authority Revenue, Subseries B2, 2.900%,
11/01/2026+......................................... 9,000,000
FIRST UNION NATIONAL BANK
10,000,000 New York State Dormitory Authority Revenue, New York
Public Library, Revenue Bonds, Series A, (MBIA),
3.600%, 07/01/2028+................................. 10,000,000
MORGAN GUARANTY TRUST
11,100,000 New York City, New York, General Obligation Bonds,
Series F6, 3.800%, 02/15/2018+...................... 11,100,000
5,000,000 New York City, New York, Transitional Finance
Authority Revenue, Series B1, 2.900%, 11/01/2027+... 4,997,643
7,500,000 New York State Dormitory Authority Revenue, Sloan
Memorial,
3.700%, 07/01/2026+................................. 7,500,000
SOCIETE GENERALE
1,400,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Orange &
Rockland Utilities, Series A, (FGIC),
3.600%, 10/01/2014+................................. 1,400,000
6,200,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Orange &
Rockland Utilities, Series A, (AMBAC),
3.600%, 08/01/2015+................................. 6,200,000
6,000,000 New York State Local Government Assistance Corp.
Revenue Bonds, Series D, 3.650%, 04/01/2025+........ 6,000,000
TORONTO DOMINION BANK
7,050,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Niagara
Mohawk Corp. Project, Series A, 3.900%, 03/01/2027+. 7,050,000
UNION BANK OF SWITZERLAND
1,700,000 New York State Energy Research & Development
Authority, Gas Facilities Revenue, Brooklyn Union
Gas, Series A, (MBIA), 3.600%, 12/01/2020+.......... 1,700,000
</TABLE>
See Notes to Financial Statements
12
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 1999 (Unaudited)
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)
$ 2,560,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, New
York State Electric & Gas, Series B,
3.200%, 10/15/2015+................................ $ 2,558,720
------------
178,703,621
------------
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- 45.03%
700,000 Guam Power Authority, Commercial Paper, 3.000%,
10/01/1999......................................... 700,000
1,200,000 Hempstead, New York, Industrial Development Agency
Resource Recovery Revenue, Fuel Company Project,
4.050%, 12/01/1999................................. 1,200,648
2,800,000 Irvington, New York, Union Free School District,
Tax Anticipation Notes,
4.000%, 02/11/2000................................. 2,808,008
4,000,000 Long Island Power Authority, New York, Electric
Systems, Commercial Paper, 3.500%, 01/21/2000...... 4,000,000
8,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper, Series B, 3.450%, 02/10/2000..... 8,000,000
10,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper,
3.550%, 02/18/2000................................. 10,000,000
10,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper,
3.500%, 03/07/2000................................. 10,000,000
6,000,000 New York City, New York, City Municipal Water
Financing Authority, Water & Sewer Systems
Commercial Paper,
3.750%, 10/21/1999................................. 6,000,000
7,000,000 New York City, New York, City Municipal Water
Financing Authority, Water & Sewer Systems
Commercial Paper, Series 5, 3.250%, 11/15/1999..... 7,000,000
4,000,000 New York City, New York, General Obligation
Commercial Paper,
3.450%, 01/21/2000................................. 4,000,000
7,000,000 New York City, New York, Housing Development
Corporation Multifamily Rent Housing Revenue Bonds,
Parkgate Development, Series A,
3.600%, 10/15/2028+................................ 7,000,000
4,480,000 New York State Dormitory Authority, Columbia
University Commercial Paper, 3.300%, 10/12/1999.... 4,480,000
2,660,000 New York State Dormitory Authority, Commercial
Paper, Series A,
3.600%, 07/01/2015+................................ 2,660,000
1,845,000 New York State Dormitory Authority, Commercial
Paper, 3.250%, 10/12/1999.......................... 1,845,000
3,000,000 New York State Dormitory Authority, Commercial
Paper, 3.450%, 11/05/1999.......................... 3,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$10,900,000 New York State Dormitory Authority, Rockefeller
University Revenue Bonds, Series A, 3.600%,
07/01/2014+........................................ $ 10,900,000
10,000,000 New York State Power Authority General Purpose
Revenue Bonds,
3.500%, 12/08/1999................................. 10,000,000
12,295,000 New York State Power Authority General Purpose
Revenue Bonds,
3.550%, 03/01/2000................................. 12,295,000
10,000,000 New York State Power Authority General Purpose
Revenue Bonds,
3.600%, 04/03/2000................................. 10,000,000
14,000,000 Puerto Rico Government Development Bank, 3.400%,
02/08/2000......................................... 14,000,000
1,000,000 Rochester, New York, General Obligation Bonds,
4.000%, 10/01/1999................................. 1,000,000
8,000,000 Westchester County, New York, Healthcare System
Commercial Paper,
3.400%, 12/08/1999................................. 8,000,000
------------
138,888,656
------------
<CAPTION>
Shares
------
<C> <S> <C>
OTHER INVESTMENTS -- 0.50%
1,531,100 Provident Institutional New York
Tax-Exempt Money Fund.............................. 1,531,100
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $319,123,377*).................................... 103.46% $319,123,377
OTHER ASSETS & LIABILITIES (NET)........................ (3.46) (10,667,301)
------ ------------
NET ASSETS.............................................. 100.00% $308,456,076
====== ============
</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 September 30, 1999, approximately, 58% 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 September 30, 1999, approximately, 98% 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
13
<PAGE>
EXCELSIOR FUNDS, INC.
EXCELSIOR TAX-EXEMPT FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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
seventeen 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 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-
14
<PAGE>
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>
(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.
15
<PAGE>
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 (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 is a state-chartered bank and trust company and a
member bank of the Federal Reserve System. U.S. Trust Company is a Connecticut
state bank and trust company. Each is a wholly-owned subsidiary of U.S. Trust
Corporation, a registered bank holding company.
U.S. Trust Company, 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 six months
ended September 30, 1999, administration fees charged by U.S. Trust Company
were as follows:
<TABLE>
<S> <C>
Treasury Money Fund.............................................. $ 92,896
Government Money Fund............................................ 161,571
Money Fund....................................................... 204,121
Tax-Exempt Money Fund............................................ 281,688
New York Tax-Exempt Money Fund................................... 59,569
</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 six months ended September 30,
1999, U.S. Trust waived investment advisory fees totaling $268,349 for New
York Tax-Exempt Money Fund pursuant to this voluntary limitation.
Effective November 19, 1999, U.S. Trust has contractually agreed to waive
investment advisory fees and to reimburse other ordinary operating expenses
through March 31, 2000 to the extent necessary to keep total operating
expenses from exceeding the following annual percentages of each Portfolio's
average daily net assets:
<TABLE>
<S> <C>
Treasury Money Fund.................................................. 0.55%
Government Money Fund................................................ 0.50%
Money Fund........................................................... 0.50%
Tax-Exempt Money Fund................................................ 0.50%
</TABLE>
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.
16
<PAGE>
Administrative service fees paid to affiliates of U.S. Trust amounted to
$852,884 for the six months ended September 30, 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 six months ended
September 30, 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.............................. $ 53,365 --
Government Money Fund............................ 111,347 $110
Money Fund....................................... 247,993 --
Tax-Exempt Money Fund............................ 431,097 --
New York Tax-Exempt Money Fund................... 9,841 --
</TABLE>
Edgewood Services, Inc. ("the Distributor"), a wholly-owned subsidiary of
Federated Investors, Inc., serves as the 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 seventeen 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.
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
--------------------------------
Six Months Year Ended
Ended 09/30/99 03/31/99
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 1,508,890,784 $ 2,679,518,952
Issued as reinvestment of dividends........... 1,112,945 3,026,464
Redeemed...................................... (1,596,817,543) (2,658,004,724)
--------------- ---------------
Net Increase (Decrease)....................... $ (86,813,814) $ 24,540,692
=============== ===============
<CAPTION>
Government Money Fund
--------------------------------
Six Months Year Ended
Ended 09/30/99 03/31/99
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 3,389,892,788 $ 4,372,983,435
Issued as reinvestment of dividends........... 831,264 1,710,757
Redeemed...................................... (3,222,893,370) (4,332,961,570)
--------------- ---------------
Net Increase.................................. $ 167,830,682 $ 41,732,622
=============== ===============
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
Money Fund
--------------------------------
Six Months Year Ended
Ended 09/30/99 03/31/99
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 2,125,245,182 $ 4,459,113,083
Issued as reinvestment of dividends........... 2,559,997 5,478,185
Redeemed...................................... (2,066,000,616) (4,149,800,055)
--------------- ---------------
Net Increase.................................. $ 61,804,563 $ 314,791,213
=============== ===============
<CAPTION>
Tax-Exempt Money Fund
--------------------------------
Six Months Year Ended
Ended 09/30/99 03/31/99
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 2,507,824,368 $ 5,351,039,833
Issued as reinvestment of dividends........... 890,950 2,425,946
Redeemed...................................... (2,745,830,903) (5,246,893,150)
--------------- ---------------
Net Increase (Decrease)....................... $ (237,115,585) $ 106,572,629
=============== ===============
<CAPTION>
New York Tax-Exempt Money Fund
--------------------------------
Six Months Year Ended
Ended 09/30/99 03/31/99*
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 518,709,563 $ 886,545,150
Issued as reinvestment of dividends........... 358,023 165,634
Redeemed...................................... (516,323,816) (580,991,477)
--------------- ---------------
Net Increase.................................. $ 2,743,770 $ 305,719,307
=============== ===============
</TABLE>
- --------
* For the period August 3, 1998 (commencement of operations) through March
31, 1999.
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 six months ended September 30, 1999, the Portfolios had
no borrowings under the agreement.
5. Year 2000 Risk:
The Funds depend on the smooth functioning of computer systems in almost
every aspect of their business. Like other mutual funds, businesses and
individuals around the world, the Funds could be adversely affected if the
computer systems used by their service providers do not properly process dates
on and after January 1, 2000, and distinguish between the year 2000 and the
year 1900. This is commonly known as the "Year 2000 Problem." The investment
adviser and the Funds' other service providers advise 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 Funds 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 Funds as a result of the Year 2000 Problem. In addition, the Funds and
their shareholders may experience losses as a result of computer difficulties
experienced by issuers of portfolio securities or third parties, such as
custodians, banks, broker-dealers or others with which the Funds do business.
18
