<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
[LOGO OF EXCELSIOR FUNDS]
Money Market
Portfolios
SEMI-ANNUAL REPORT
September 30, 2000
<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
Money Fund............................................................... 6
Government Money Fund.................................................... 7
Treasury Money Fund...................................................... 8
Tax-Exempt Money Fund.................................................... 9
New York Tax-Exempt Money Fund........................................... 13
NOTES TO FINANCIAL STATEMENTS............................................. 16
</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, 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, 2000 (Unaudited)
<TABLE>
<CAPTION>
New York
Government Treasury 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........... $1,782,626,920 $1,035,129,909 $423,223,453 $2,055,160,501 $552,388,705
============== ============== ============ ============== ============
Investments, at value
(Note 1)............. $1,782,626,920 $1,035,129,909 $423,223,453 $2,055,160,501 $552,388,705
Cash.................. -- 1,000 1,000 -- --
Interest receivable... 22,509,740 14,763,004 5,471,138 11,914,993 3,181,008
Receivable for shares
sold................. 70,734,333 22,952,436 18,010,601 58,397,362 4,869,532
Receivable for
investments sold..... -- -- -- -- 9,150,000
Prepaid expenses...... 146,109 11,670 7,660 104,027 5,422
-------------- -------------- ------------ -------------- ------------
Total Assets.......... 1,876,017,102 1,072,858,019 446,713,852 2,125,576,883 569,594,667
LIABILITIES:
Payable for dividends
declared............. 9,515,327 5,499,481 2,174,600 6,787,844 1,645,502
Payable for
investments
purchased............ -- -- -- 5,907,724 --
Payable for shares
redeemed............. 62,002,800 52,896,003 20,355,707 25,962,864 17,862,622
Investment advisory
fees payable (Note
2)................... 17,230 141,628 73,681 217,666 155,037
Administration fees
payable (Note 2)..... 350,913 249,112 64,716 294,170 66,892
Administrative
servicing fees
payable (Note 2)..... 341,734 57,385 45,945 268,361 17,106
Directors' fees
payable (Note 2)..... 7,939 2,324 -- -- 523
Due to custodian bank. 1,938,366 -- -- 3,150,045 297,023
Accrued expenses and
other payables....... 126,561 146,380 27,183 40,186 42,718
-------------- -------------- ------------ -------------- ------------
Total Liabilities..... 74,300,870 58,992,313 22,741,832 42,628,860 20,087,423
-------------- -------------- ------------ -------------- ------------
NET ASSETS............. $1,801,716,232 $1,013,865,706 $423,972,020 $2,082,948,023 $549,507,244
============== ============== ============ ============== ============
NET ASSETS consist of:
Undistributed
(distributions in
excess of) net
investment income.... $ 2,454 $ (75) $ 3,509 $ 1,986 $ --
Accumulated net
realized loss on
investments.......... (19,632) (85,594) (11,345) (92,603) (7,389)
Par value (Note 3).... 1,801,918 1,013,989 423,982 2,083,289 549,515
Paid-in capital in
excess of par value.. 1,799,931,492 1,012,937,386 423,555,874 2,080,955,351 548,965,118
-------------- -------------- ------------ -------------- ------------
Total Net Assets....... $1,801,716,232 $1,013,865,706 $423,972,020 $2,082,948,023 $549,507,244
============== ============== ============ ============== ============
Net Assets:
Shares................ $1,510,669,464 $1,013,865,706 $423,972,020 $2,082,948,023 $549,507,244
Institutional Shares.. 291,046,768 -- -- -- --
Shares of Common Stock Outstanding
(Note 3):
Shares................ 1,510,871,195 1,013,989,088 423,981,936 2,083,289,285 549,515,414
Institutional Shares.. 291,046,692 -- -- -- --
NET ASSET VALUE PER
SHARE:
Shares................ $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Institutional Shares.. $1.00 -- -- -- --
===== ===== ===== ===== =====
</TABLE>
See Notes to Financial Statements
1
<PAGE>
Excelsior Funds, Inc.
Statements of Operations
Six Months Ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
New York
Government Treasury Tax-Exempt Tax-Exempt
Money Fund Money Fund Money Fund Money Fund Money Fund
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........ $57,534,575 $33,486,910 $14,986,614 $43,615,916 $9,828,116
----------- ----------- ----------- ----------- ----------
EXPENSES:
Investment advisory
fees (Note 2)......... 2,223,321 1,297,070 759,474 2,588,857 1,180,271
Administrative
servicing fees (Note
2).................... 1,838,481 169,209 96,401 799,700 32,959
Administration fees
(Note 2).............. 1,351,779 788,618 384,800 1,574,025 358,802
Custodian fees......... 230,884 175,221 67,985 261,800 61,008
Legal and audit fees... 65,907 28,428 14,348 55,767 14,674
Shareholder servicing
agent fees............ 36,623 9,269 9,082 17,109 5,022
Shareholder reports.... 19,869 14,778 3,626 5,304 4,651
Directors' fees and
expenses (Note 2)..... 15,605 6,523 2,968 31,038 8,412
Registration and filing
fees.................. 14,386 20,910 4,192 9,507 662
Miscellaneous expenses. 221,493 72,387 28,428 85,280 18,149
----------- ----------- ----------- ----------- ----------
Total Expenses......... 6,018,348 2,582,413 1,371,304 5,428,387 1,684,610
Fees waived and
reimbursed by
investment adviser and
administrators (Note
2).................... (2,147,466) (169,209) (96,401) (799,700) (467,688)
----------- ----------- ----------- ----------- ----------
Net Expenses........... 3,870,882 2,413,204 1,274,903 4,628,687 1,216,922
----------- ----------- ----------- ----------- ----------
NET INVESTMENT INCOME... 53,663,693 31,073,706 13,711,711 38,987,229 8,611,194
----------- ----------- ----------- ----------- ----------
REALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain
(loss) on
security transactions. (308) 2,903 12,994 150 10,503
----------- ----------- ----------- ----------- ----------
Net increase in net
assets resulting from
operations............. $53,663,385 $31,076,609 $13,724,705 $38,987,379 $8,621,697
=========== =========== =========== =========== ==========
</TABLE>
See Notes to Financial Statements
2
<PAGE>
Excelsior Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
New York
Government Treasury 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, 2000
(Unaudited)
Net investment income... $ 53,663,693 $ 31,073,706 $ 13,711,711 $ 38,987,229 $ 8,611,194
Net realized gain (loss)
on investments......... (308) 2,903 12,994 150 10,503
-------------- -------------- ------------- -------------- ------------
Net increase in net
assets resulting from
operations............. 53,663,385 31,076,609 13,724,705 38,987,379 8,621,697
Distributions to
shareholders:
From net investment
income
Shares................. (44,938,288) (31,073,706) (13,734,402) (38,987,116) (8,611,194)
Institutional Shares... (8,723,313) -- -- -- --
Increase (decrease) in
net assets from fund
share transactions
(Note 3):
Shares................. 43,486,924 241,172,530 (101,412,203) 31,839,519 128,103,638
Institutional Shares... 18,047,866 -- -- -- --
-------------- -------------- ------------- -------------- ------------
Net increase (decrease)
in net assets.......... 61,536,574 241,175,433 (101,421,900) 31,839,782 128,114,141
NET ASSETS:
Beginning of period.... 1,740,179,658 772,690,273 525,393,920 2,051,108,241 421,393,103
-------------- -------------- ------------- -------------- ------------
End of period (1)...... $1,801,716,232 $1,013,865,706 $ 423,972,020 $2,082,948,023 $549,507,244
============== ============== ============= ============== ============
(1) Including
undistributed
(distributions in
excess of) net
investment income..... $ 2,454 $ (75) $ 3,509 $ 1,986 $ --
============== ============== ============= ============== ============
Year Ended March 31,
2000
Net investment income... $ 61,079,910 $ 39,690,327 $ 21,653,324 $ 44,713,807 $ 9,329,928
Net realized gain (loss)
on investments......... 34,486 (1,247) (24,339) 68,882 (17,892)
-------------- -------------- ------------- -------------- ------------
Net increase in net
assets resulting from
operations............. 61,114,396 39,689,080 21,628,985 44,782,689 9,312,036
Distributions to
shareholders:
From net investment
income
Shares................. (56,402,552) (39,690,302) (21,653,324) (44,703,007) (9,329,928)
Institutional Shares*.. (4,676,979) -- -- -- --
Increase in net assets
from fund share
transactions (Note 3)
Shares................. 493,480,150 130,860,598 31,201,410 547,959,304 115,691,688
Institutional Shares*.. 272,997,023 -- -- -- --
-------------- -------------- ------------- -------------- ------------
Net increase in net
assets................. 766,512,038 130,859,376 31,177,071 548,038,986 115,673,796
NET ASSETS:
Beginning of year...... 973,667,620 641,830,897 494,216,849 1,503,069,255 305,719,307
-------------- -------------- ------------- -------------- ------------
End of year (2)........ $1,740,179,658 $ 772,690,273 $ 525,393,920 $2,051,108,241 $421,393,103
============== ============== ============= ============== ============
--------
(2) Including
undistributed
(distributions in
excess of) net
investment income..... $ 362 $ (75) $ 26,200 $ 1,873 $ --
============== ============== ============= ============== ============
</TABLE>
--------
* Institutional shares of the Money Fund commenced operations on December 16,
1999.
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>
Dividends
Net Asset Total Dividends in Excess
Value, Net Net Realized From From Net of Net
Beginning Investment Gain (Loss) Investment Investment Investment
of Period Income on Investments Operations Income Income
--------- ---------- -------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
MONEY FUND
Shares -- (5/3/85*):
Year Ended March 31,
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) --
2000................... 1.00 0.05005 -- 0.05005 (0.05005) --
Six Months Ended
September 30, 2000
(Unaudited)........... 1.00 0.03008 -- 0.03008 (0.03008) --
GOVERNMENT MONEY FUND --
(5/8/85*)
Year Ended March 31,
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) --
2000................... 1.00 0.05004 -- 0.05004 (0.05004) --
Six Months Ended
September 30, 2000
(Unaudited)........... 1.00 0.02996 -- 0.02996 (0.02996) --
TREASURY MONEY FUND --
(2/13/91*)
Year Ended March 31,
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) --
2000................... 1.00 0.04560 -- 0.04560 (0.04560) --
Six Months Ended
September 30, 2000
(Unaudited)........... 1.00 0.02727 0.00004 0.02731 (0.02731) --
TAX-EXEMPT MONEY FUND --
(5/24/85*)
Year Ended March 31,
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)
2000................... 1.00 0.02946 $(0.00001) 0.02945 (0.02945) --
Six Months Ended
September 30, 2000
(Unaudited)........... 1.00 0.01888 -- 0.01888 (0.01888) --
NEW YORK TAX-EXEMPT MONEY FUND -- (8/3/98*)
Period Ended March 31,
1999.................. $1.00 $0.01711 -- $0.01711 $(0.01711) --
Year Ended March 31,
2000.................. 1.00 0.02809 -- 0.02809 (0.02809) --
Six Months Ended
September 30, 2000
(Unaudited)........... 1.00 0.01821 -- 0.01821 (0.01821) --
</TABLE>
* Commencement of operations
(1) Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
(2) Annualized
(3) Not Annualized
See Notes to Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
Ratio of Ratio of Ratio of
Net Net Gross Net
Net Asset Assets, Operating Operating Investment
Value, End of Expenses Expenses Income Fee
Total End of Total Period to Average to Average to Average Waivers
Distributions Period Return (000's) Net Assets Net Assets(1) Net Assets (Note 2)
------------- --------- ------ ---------- ---------- ------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
$(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
(0.05005) 1.00 5.08% 1,467,183 0.47% 0.58% 5.05% 0.00104
(0.03008) 1.00 3.00%(3) 1,510,669 0.47%(2) 0.71%(2) 6.00%(2) 0.00121
$(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
(0.05004) 1.00 5.08% 772,690 0.47% 0.50% 5.01% 0.00035
(0.02996) 1.00 3.00%(3) 1,013,866 0.47%(2) 0.50%(2) 5.99%(2) 0.00016
$(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
(0.04560) 1.00 4.62% 525,394 0.51% 0.53% 4.58% 0.00021
(0.02731) 1.00 2.72%(3) 423,972 0.50%(2) 0.54%(2) 5.41%(2) 0.00019
$(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
(0.02945) 1.00 2.96% 2,051,108 0.46% 0.52% 2.97% 0.00066
(0.01888) 1.00 1.87%(3) 2,082,948 0.45%(2) 0.52%(2) 3.77%(2) 0.00039
$(0.01711) $1.00 1.72%(3) $ 305,719 0.47%(2) 0.79%(2) 2.24%(2) $0.00219
(0.02809) 1.00 2.82% 421,393 0.54% 0.71% 2.84% 0.00174
(0.01821) 1.00 1.80%(3) 549,507 0.51%(2) 0.71%(2) 3.64%(2) 0.00099
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Money Fund
<TABLE>
<CAPTION>
Principal Discount
Amount Rate Value (Note 1)
--------- -------- --------------
<C> <S> <C> <C>
COMMERCIAL PAPER -- 34.38%
$ 80,000,000 American Express Co.,
10/16/00............................... 6.48% $ 80,000,000
85,000,000 Anheuser-Busch Cos, Inc.,
10/02/00............................... 6.71 85,000,000
85,000,000 Asset Securitization Corp.,
10/13/00............................... 6.57 84,829,362
85,000,000 Cafco Holding Corp.,
10/11/00............................... 6.64 84,860,813
80,000,000 Citibank Canada,
10/31/00............................... 6.55 80,000,000
85,000,000 Diageo plc,
10/02/00............................... 6.77 85,000,000
80,000,000 Hewlett-Packard Co.,
10/12/00............................... 6.56 79,856,222
40,000,000 Merck & Co., Inc.,
10/19/00............................... 6.56 39,877,789
--------------
TOTAL COMMERCIAL PAPER
(Cost $619,424,186).................... 619,424,186
--------------
CORPORATE BONDS -- 5.55%
50,000,000 AT&T Corp.,
07/19/01............................... 6.65# 50,000,000
50,000,000 Morgan Stanley Dean Witter & Co.,
Series C, 03/16/01..................... 6.63# 50,000,000
--------------
TOTAL CORPORATE BONDS
(Cost $100,000,000).................... 100,000,000
--------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 55.50%
Federal Home Loan Bank
300,000,000 10/12/00............................... 6.48# 300,000,000
100,000,000 10/26/00............................... 6.48# 100,000,000
100,000,000 02/15/01............................... 6.55 100,000,000
Student Loan Marketing Association
200,000,000 02/15/01............................... 6.52# 200,000,000
300,000,000 07/26/01............................... 6.65# 300,046,068
--------------
TOTAL U.S. GOVERNMENT
& AGENCY OBLIGATIONS
(Cost $1,000,046,068).................. 1,000,046,068
--------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ --------
<S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 3.51%
INVESTMENT COMPANIES
15,732,181 Dreyfus Government Cash
Management Fund......... $ 15,732,181
2,424,485 Dreyfus Treasury Prime
Cash Management Fund.... 2,424,485
<CAPTION>
Principal
Amount
-----------
<S> <C> <C>
REPURCHASE AGREEMENT##
$45,000,000 Morgan Stanley Dean
Witter & Co. Repurchase
Agreement, 6.63%, dated
09/29/00, due 10/02/00,
to be repurchased at
$45,024,863............. 45,000,000
--------------
TOTAL OTHER SHORT-TERM
INVESTMENTS (Cost
$63,156,666)............ 63,156,666
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $1,782,626,920*).................................. 98.94% $1,782,626,920
OTHER ASSETS & LIABILITIES (NET)........................ 1.06 19,089,312
------ --------------
NET ASSETS.............................................. 100.00% $1,801,716,232
====== ==============
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities -- rate disclosed is as of September 30,
2000.
## The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of this schedule of
investments.
See Notes to Financial Statements
6
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Government Money Fund
<TABLE>
<CAPTION>
Principal Discount
Amount Rate Value (Note 1)
--------- -------- --------------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 98.28%
Federal Home Loan Bank
$200,000,000 10/02/00............................... 6.34% $ 200,000,000
225,000,000 10/26/00............................... 6.48# 225,000,000
49,900,000 01/26/01............................... 6.49 49,897,660
21,525,000 02/15/01............................... 6.45 21,496,757
100,000,000 04/12/01............................... 6.52# 100,000,000
Student Loan Marketing Association
100,000,000 01/18/01............................... 6.61# 100,000,000
300,000,000 02/15/01............................... 6.52# 300,000,000
--------------
TOTAL U.S. GOVERNMENT
& AGENCY OBLIGATIONS (Cost
$996,394,417).......................... 996,394,417
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value (Note 1)
------ --------------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 3.82%
INVESTMENT COMPANY
13,735,492 Dreyfus Government Cash
Management Fund.............. $ 13,735,492
<CAPTION>
Principal
Amount
---------
<C> <S> <C> <C>
REPURCHASE AGREEMENT##
$25,000,000 Morgan Stanley Dean Witter &
Co. Repurchase Agreement,
6.63%, dated 09/29/00, due
10/02/00, to be repurchased
at $25,013,812............... 25,000,000
--------------
TOTAL OTHER SHORT-TERM
INVESTMENTS
(Cost $38,735,492)........... 38,735,492
--------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS
(Cost $1,035,129,909*)... 102.10% $1,035,129,909
OTHER ASSETS &
LIABILITIES (NET)........ (2.10) (21,264,203)
------- --------------
NET ASSETS............... 100.00% $1,013,865,706
======= ==============
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities--rate disclosed is as of September 30,
2000.
## The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of this schedule of
investments.
See Notes to Financial Statements
7
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Treasury Money Fund
<TABLE>
<CAPTION>
Principal Discount Value
Amount Rate (Note 1)
--------- -------- ------------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 98.99%
Federal Home Loan Bank
$ 20,000,000 10/02/00................................ 6.25% $ 20,000,000
25,000,000 10/26/00................................ 6.48# 25,000,000
25,000,000 04/12/01................................ 6.52# 25,000,000
50,000,000 Tennessee Valley Authority
10/03/00................................ 6.40 49,991,111
100,000,000 U.S. Treasury Bills
10/12/00................................ 6.04 99,834,444
200,000,000 U.S. Treasury Notes
11/15/00................................ 6.22 199,855,234
------------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS
(Cost $419,680,789)..................... 419,680,789
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ ------------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 0.83%
3,542,664 Dreyfus Government Cash Management Fund
(Cost $3,542,664)................................ $ 3,542,664
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $423,223,453*)..................................... 99.82% $423,223,453
OTHER ASSETS & LIABILITIES (NET).......................... 0.18 748,567
------ ------------
NET ASSETS................................................ 100.00% $423,972,020
====== ============
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
# Variable or floating rate securities--rate disclosed is as of September 30,
2000.
See Notes to Financial Statements
8
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Tax-Exempt Money Fund
<TABLE>
<CAPTION>
Principal Value (Note
Amount 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- 57.88%
$20,000,000 Anne Arundel County, Maryland, Commercial Paper,
4.350%, 11/08/2000................................... $20,000,000
15,333,000 Austin, Texas, Combined Utilities, Commercial Paper,
4.250%, 02/09/2001................................... 15,333,000
26,000,000 Brownsville, Texas, Utility Systems, Commercial
Paper,
4.250%, 10/10/2000................................... 26,000,000
15,000,000 Burke County, Georgia, Development Authority,
Commercial Paper, 4.250%, 12/07/2000................. 15,000,000
16,000,000 Burke County, Georgia, Development Authority,
Oglethorpe Pike, Commercial Paper,
4.300%, 12/06/2000................................... 16,000,000
11,500,000 Custer County, Idaho, Pollution Control Revenue
Bonds, Amoco Oil Co. Project, 4.150%, 10/01/2000..... 11,500,000
10,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper, 4.000%, 10/12/2000................. 10,000,000
11,000,000 Dallas, Texas, Dallas Area Rapid Transit Authority,
Commercial Paper, 4.200%, 11/14/2000................. 11,000,000
16,000,000 District of Columbia, American National Red Cross,
Commercial Paper 4.250%, 11/15/2000.................. 16,000,000
15,000,000 District of Columbia, American National Red Cross,
Commercial Paper, 4.300%, 11/14/2000................. 15,000,000
25,000,000 Gainsville, Florida, Utility Systems, Commercial
Paper,
4.250%, 02/09/2001................................... 25,000,000
5,000,000 Hockley County, Texas, General Obligation Bonds,
4.100%, 03/03/2001................................... 5,000,000
8,000,000 Hockley County, Texas, General Obligation Bonds,
4.500%, 11/01/2000................................... 8,000,000
9,400,000 Houston, Texas, General Obligation Bonds, Series A,
4.250%, 11/28/2000................................... 9,400,000
15,000,000 Houston, Texas, General Obligation Bonds,
4.350%, 01/11/2001................................... 15,000,000
20,000,000 Houston, Texas, General Obligation Bonds, Series B,
4.300%, 01/11/2001................................... 20,000,000
10,000,000 Illinois Educational Facilities Authority, Commercial
Paper,
4.250%, 01/16/2001................................... 10,000,000
10,200,000 Indianapolis Local Improvement General Obligation
Bonds,
5.000%, 01/08/2001................................... 10,218,697
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$27,000,000 Indianapolis, Indiana, Gas & Utilities Systems,
Commercial Paper,
4.300%, 11/08/2000................................... $27,000,000
10,600,000 Indianapolis, Indiana, Gas & Utilities Systems,
Commercial Paper,
4.200%, 11/14/2000................................... 10,600,000
25,000,000 Intermountain Power Agency, Utah, 4.250%, 10/11/2000. 25,000,000
12,100,000 Intermountain Power Agency, Utah, 4.200%, 10/19/2000. 12,100,000
20,000,000 Intermountain Power Agency, Utah, 4.250%, 11/15/2000. 20,000,000
10,000,000 Intermountain Power Agency, Utah, Series 97B,
4.150%, 11/01/2000................................... 10,000,000
20,000,000 Jacksonville, Florida, General Obligation Commercial
Paper,
4.250%, 11/15/2000................................... 20,000,000
6,200,000 Jackson County, Mississippi, Port
Facilities Revenue Bonds,
Chevron USA, Inc. Project,
5.500%, 06/01/2023................................... 6,200,000
8,740,000 Kansas City, Kansas, Pollution
Control Revenue Bonds,
General Motors Corp. Project,
4.300%, 11/01/2007+.................................. 8,740,000
7,600,000 Lincoln County, Wyoming, Pollution Control Revenue
Bonds, Amoco Project, 4.150%, 10/01/2000............. 7,600,000
35,000,000 Michigan State, Building Authority Commercial Paper,
4.300%, 11/21/2000................................... 35,000,000
25,000,000 Montgomery, Alabama, Electric Commercial Paper,
4.300%, 10/06/2000................................... 25,000,000
5,000,000 Mount Vernon, Indiana, General Electric Commercial
Paper,
4.100%, 10/12/2000................................... 5,000,000
45,500,000 New York City, New York, Municipal Water Authority,
Commercial Paper,
4.250%, 10/11/2000................................... 45,500,000
15,000,000 New York State, Power Authority & General Purpose
Revenue Bonds, 4.350%, 10/06/2000.................... 15,000,000
24,700,000 Nueces River, Texas, San Miguel Electric Corp.
Commercial Paper,
4.300%, 10/03/2000................................... 24,700,000
52,500,000 Nueces River, Texas, San Miguel Electric Corp.
Commercial Paper,
4.300%, 12/07/2000................................... 52,500,000
7,350,000 Omaha, Nebraska, Public Power District, Commercial
Paper,
4.300%, 11/14/2000................................... 7,350,000
23,800,000 Omaha, Nebraska, Public Power District, Commercial
Paper,
4.200%, 11/13/2000................................... 23,800,000
</TABLE>
See Notes to Financial Statements
9
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Tax-Exempt Money Fund -- (continued)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- --------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$27,000,000 Omaha, Nebraska, Public Power District, Commercial
Paper,
4.250%, 01/16/2001.................................. $27,000,000
10,000,000 Petersburg, Indiana, Pollution Control Revenue
Bonds, Indiana Power & Light Co., Series B, (AMBAC),
5.650%, 01/01/2023+................................. 10,000,000
15,000,000 Platte River, Colorado,
Commercial Paper,
4.250%, 01/24/2001.................................. 15,000,000
28,000,000 Private Colleges & Universities Building Facilities
Authority, Georgia Revenue Bonds, Emory University,
Series B, 5.500%, 11/01/2035+....................... 28,000,000
5,300,000 Purdue University, Indiana, University Revenue
Bonds, Student Fee, Series K, 4.350%, 07/01/2020+... 5,300,000
11,110,000 Purdue University, Indiana, University Revenue
Bonds, Student Fee, Series H, 5.800%, 07/01/2017+... 11,110,000
7,000,000 Putnam County, Florida, Development Authority
Pollution Control Revenue Bonds, Seminole Electric
Cooperative, Series D,
3.400%, 12/15/2009.................................. 7,000,000
22,610,000 Salt River, Arizona, Electric & Gas Commercial
Paper,
4.200%, 10/17/2000.................................. 22,610,000
20,000,000 Salt River, Arizona, Electric & Gas Commercial
Paper,
4.200%, 11/10/2000.................................. 20,000,000
24,000,000 Salt River, Arizona, Electric & Gas Commercial Paper
4.150%, 11/13/2000.................................. 24,000,000
25,600,000 Salt River, Arizona, Electric & Gas Commercial
Paper,
4.250%, 02/05/2001.................................. 25,600,000
5,000,000 San Antonio, Texas, Series 95,
4.300%, 10/13/2000.................................. 5,000,000
7,000,000 San Antonio, Texas, Water Commercial Paper, Series
1995,
4.250%, 10/13/2000.................................. 7,000,000
18,300,000 San Antonio, Texas, Water Commercial Paper,
4.250%, 10/10/2000.................................. 18,300,000
27,000,000 San Antonio, Texas, Water Commercial Paper,
4.250%, 02/07/2001.................................. 27,000,000
10,000,000 San Antonio, Texas, Water Commercial Paper,
4.250%, 02/08/2001.................................. 10,000,000
40,000,000 Shelby County, Tennessee, Commercial Paper,
4.200%, 01/17/2001.................................. 40,000,000
25,000,000 South Carolina State, Public Service Authority,
Commercial Paper,
4.250%, 10/02/2000.................................. 25,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- --------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$39,000,000 St. James Parish, Louisiana, Pollution Control
Revenue Bonds, Texaco Inc. Project, Series B,
4.250%, 10/17/2000................................ $ 39,000,000
22,100,000 Tennessee State School Board, Commercial Paper,
4.200%, 10/12/2000................................ 22,100,000
8,000,000 Texas A&M University, Revenue Bonds, 4.250%,
02/14/2001........................................ 8,000,000
28,240,000 Texas State, General Obligation Bonds, Veterans
Housing Assistance-Fund I, 5.400%, 12/01/2016+.... 28,240,000
32,000,000 Texas State, Transportation Authority, Commercial
Paper,
5.600%, 08/31/2001+............................... 32,000,000
17,760,000 Texas Technical University, Commercial Paper,
Series A,
4.250%, 11/13/2000................................ 17,760,000
49,000,000 University of Missouri, Revenue Bonds, 5.600%,
11/01/2030+....................................... 49,000,000
27,000,000 University of Texas, Commercial Paper, Series A,
4.200%, 12/12/2000................................ 27,000,000
15,000,000 Wisconsin State, General Obligation Commercial
Paper, Series A,
4.100%, 11/09/2000................................ 15,000,000
-------------
1,205,561,697
-------------
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY
LETTERS OF CREDIT -- 40.79%
BANK OF AMERICA
22,000,000 Des Moines, Iowa, Hospital Facilities Revenue
Bonds, Iowa Methodist Medical Center Project,
5.600%, 08/01/2015+............................... $ 22,000,000
17,300,000 Meckenburg County, North Carolina, General
Obligation Bonds, Series B,
5.600%, 03/01/2015+............................... 17,300,000
23,600,000 Mecklenburg County, North Carolina, General
Obligation Bonds, Series C,
4.300%, 03/01/2014+............................... 23,600,000
21,000,000 Michigan Technological University Revenue Bonds,
Series A, (AMBAC),
5.850%, 10/01/2018+............................... 21,000,000
15,505,000 Richmond, Virginia Revenue Anticipation Notes,
Series B,
4.400%, 06/30/2004+............................... 15,505,000
14,800,000 University of Delaware, Revenue Bonds, 5.600%,
11/01/2023+....................................... 14,800,000
BANK OF NEW YORK
51,500,000 Triborough Bridge & Tunnel Authority, New York,
Revenue and General Purpose Bonds, Series A,
4.350%, 01/01/2003+............................... 51,500,000
20,000,000 Triborough Bridge & Tunnel Authority, New York,
Revenue and General Purpose Bonds, Series A,
5.600%, 01/01/2003+............................... 20,000,000
</TABLE>
See Notes to Financial Statements
10
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 2000 (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 --
(continued)
BANK OF NOVA SCOTIA
$10,000,000 New York State, Local Government Assistance
Corporation, Series G,
5.250%, 04/01/2025+................................ $10,000,000
BANK ONE LOUISIANA
16,400,000 Louisiana State Offshore Terminal Authority
Deepwater Port Revenue Bonds, Loop, Inc. Project,
5.450%, 10/01/2019+................................ 16,400,000
14,920,000 Louisiana State, Offshore Terminal Authority
Deepwater Port Revenue Bonds, Loop, Inc. Project,
5.400%, 09/01/2008+................................ 14,920,000
BANK ONE, N.A.
10,000,000 Chicago, Illinois, Water Revenue Bonds,
5.400%, 11/01/2030+................................ 10,000,000
BAYERISCHE LANDESBANK
25,000,000 Georgia State, Municipal Electric Authority, Series
D,
3.800%, 01/01/2020+................................ 25,000,000
11,300,000 Georgia State, Municipal Electric Authority, Series
E,
5.300%, 01/01/2020+................................ 11,300,000
40,500,000 Metropolitan Government, Nashville & Davidson
County, Tennessee, Health & Education Facilities
Board, Revenue Bonds, Vanderbilt University, Series
A, 5.550%, 10/01/2030+............................. 40,500,000
30,000,000 Oklahoma State Water Board Revenue Bonds,
4.300%, 09/01/2032+................................ 30,000,000
30,000,000 Oregon State, General Obligation Bonds, Series 73H,
5.600%, 12/01/2019+................................ 30,000,000
35,000,000 Shelby County, Tennessee, Tax Anticipation Notes,
Series A,
4.400%, 06/29/2001+................................ 35,000,000
20,000,000 Utah Transit Authority Sales Tax & Transit Revenue
Bonds, 4.250%, 09/01/2030+......................... 20,000,000
BAYERISCHE VEREINSBANK
10,400,000 Snohomish County, Washington,
Public Utilities District No. 001, Electric Revenue
Bonds, (MBIA),
5.400%, 01/01/2025+................................ 10,400,000
COMMERZBANK, A.G.
15,945,000 Dade County, Florida Water & Sewer Revenue Bonds,
Series 94, (FGIC), 5.400%, 10/05/2022+............. 15,945,000
CREDIT LOCAL DE FRANCE
17,600,000 District of Columbia Revenue Bonds,
JFK Center for the Performing Arts, (AMBAC),
5.400%, 10/01/2029+................................ 17,600,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT -- (con-
tinued)
CS FIRST BOSTON
$25,000,000 Ohio County, Kentucky, Pollution Control Revenue
Bonds, Big Rivers Electric Corp. Project, (AMBAC),
4.400%, 06/01/2013+................................. $25,000,000
10,000,000 Ohio County, Kentucky, Pollution Control Revenue
Bonds, Big Rivers Electric Corp. Project, (AMBAC),
5.600%, 10/01/2015+................................. 10,000,000
21,350,000 Piedmont Municipal Power Agency, South Carolina,
Electric Power & Light Revenue Bonds, Series A,
(MBIA), 5.650%, 01/01/2024+......................... 21,350,000
20,000,000 Piedmont Municipal Power Agency, South Carolina,
Electric Power & Light Revenue Bonds, Series B,
(MBIA), 5.500%, 01/01/2019+......................... 20,000,000
9,430,000 Washington State, Public Power Supply System Project
No. 2, Revenue Bonds, Series 2A-2, (MBIA),
5.400%, 07/01/2012+................................. 9,430,000
FIRST UNION NATIONAL BANK
11,000,000 Capital Region Airport Commission, Virginia,
Passenger Facilities Charge Revenue Bonds, Series B,
4.400%, 06/01/2029+................................. 11,000,000
FIRST UNION NATIONAL BANK/BANK OF NOVA SCOTIA
10,000,000 Nassau County, New York, Revenue Anticipation Notes,
Series A, 6.000%, 03/20/2001+....................... 10,068,304
LANDESBANK HESSEN-THURINGEN
15,000,000 Intermountain Power Agency, Utah, Power Supply
Revenue Bonds, Series F, (AMBAC),
4.225%, 07/01/2015+................................. 15,000,000
LASALLE NATIONAL BANK
11,900,000 Flint, Michigan, Hospital Building Authority Revenue
Bonds, Hurley Medical Center, Series B,
5.550%, 07/01/2015+................................. 11,900,000
4,800,000 Illinois Health Facilities Authority Revenue Bonds,
Ingalls Memorial Hospital Bonds, Series B,
5.850%, 01/01/2016+................................. 4,800,000
44,800,000 Illinois Health Facilities Authority Revenue Bonds,
Resurrection Health, Series B, (FSA),
5.650%, 05/01/2029+................................. 44,800,000
MORGAN GUARANTY TRUST
14,740,000 Detroit, Michigan, Sewage Disposal Revenue Bonds,
Series A, (MBIA), 5.500%, 07/01/2023+............... 14,740,000
</TABLE>
See Notes to Financial Statements
11
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 2000 (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 --
(continued)
$ 6,900,000 Kenton County, Kentucky, Industrial Building Revenue
Bonds, Redken Labs, Inc. Project,
4.250%, 12/01/2014+.................................. $ 6,900,000
6,050,000 New York City, New York, General Obligation Bonds,
Subseries E-3,
5.600%, 08/01/2023+.................................. 6,050,000
MORGAN STANLEY DEAN WITTER
6,795,000 Atlanta, Georgia Water & Waste, Series 329,
5.650%, 11/01/2038+.................................. 6,795,000
28,257,500 Clark County, Nevada General Obligation Bonds, CTFS-
Series 351, (MBIA),
4.440%,07/01/2030+................................... 28,257,500
8,000,000 Georgia State, General Obligation Bonds, Series 213,
5.620%, 03/01/2009+.................................. 8,000,000
10,750,000 Wisconsin State Transportation Revenue Bonds, Series
279,
4.440%, 07/01/2009+.................................. 10,750,000
NATIONAL WESTMINSTER BANK
28,438,000 Clark County, Nevada, Airport Improvement Revenue
Bonds, Series A, (MBIA),
5.400%, 07/01/2012+.................................. 28,438,000
NORDDEUTSCHE LANDESBANK
14,950,000 Brazos, Texas, Harbor Industrial Development Revenue
Bonds, Badische Corp.,
4.250%, 12/01/2013+.................................. 14,950,000
NORTHERN TRUST COMPANY
14,500,000 Illinois Health Facilities Authority Revenue Bonds,
Healthcorp. Affiliates, Series A,
4.350%, 10/01/2010+.................................. 14,500,000
SCOTIABANK
11,000,000 Indiana State Development Finance Authority
Commercial Paper, USX Corporate Project,
4.050%, 10/05/2000................................... 11,000,000
SUNTRUST BANK OF CENTRAL FLORIDA/BANK OF AMERICA
N.A./BANK ONE
200,000 Jacksonville, Florida, Capital Project Revenue Bonds,
Series 2, (AMBAC), 5.400%, 10/01/2022+............... 200,000
SUNTRUST BANK OF NASHVILLE
9,000,000 Louisiana State Offshore Terminal Authority,
Deepwater Port Refunding Revenue Bonds, Loop, Inc.,
5.550%, 09/01/2008+.................................. 9,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(continued)
WACHOVIA BANK
$27,000,000 Baltimore, Maryland, Port Facilities Revenue
Bonds, Occidental Petroleum, Series 1981,
4.100%, 10/14/2011+............................. $ 27,000,000
WELLS FARGO BANK, N.A.
6,900,000 Garden City, Kansas, Industrial Development
Revenue Bonds, Inland Container Corp. Project,
4.400%, 01/01/2008+............................. 6,900,000
--------------
849,598,804
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $2,055,160,501*)................................... 98.67% $2,055,160,501
OTHER ASSETS & LIABILITIES (NET)......................... 1.33 27,787,522
------ --------------
NET ASSETS............................................... 100.00% $2,082,948,023
====== ==============
</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.
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, 2000, approximately, 41% 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, 2000, approximately, 19% of the net assets are invested in
Texas 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
12
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
New York Tax-Exempt Money Fund
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- 56.45%
$ 7,000,000 Bedford, New York City Central School District Tax
Anticipation Notes,
4.450%, 11/01/2000.................................. $ 7,000,836
6,000,000 Binghamton, New York City School District Tax
Anticipation Notes,
4.750%, 10/20/2000.................................. 6,001,098
2,252,000 Byram Hills, New York City Central
School District Bond Anticipation Notes,
4.500%, 11/21/2000.................................. 2,252,899
6,000,000 Greenburgh, New York City Central
School District No. 7 Tax Anticipation Notes,
4.850%, 10/12/2000.................................. 6,000,926
20,500,000 Long Island Power Authority, New York, Electric
Systems, Commercial Paper,
4.250%, 02/05/2001.................................. 20,500,000
5,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper, Series A,
4.200%, 02/08/2001.................................. 5,000,000
10,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper,
4.150%, 10/11/2000.................................. 10,000,000
3,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper,
4.150%, 12/06/2000.................................. 3,000,000
10,200,000 Metropolitan Transportation Authority of New York,
Commercial Paper, Series 98B,
4.200%, 10/12/2000.................................. 10,200,000
11,300,000 Metropolitan Transportation Authority of New York,
Commercial Paper, Series 98B,
4.100%, 11/13/2000.................................. 11,300,000
10,000,000 Metropolitan Transportation Authority of New York,
Commercial Paper, Series 98B,
4.100%, 01/12/2001.................................. 10,000,000
5,000,000 New York City, New York General Obligation Bonds,
Series D,
5.600%, 02/01/2021+................................. 5,000,000
15,000,000 New York City, New York, Transitional Financing
Authority, Tax Anticipation Notes, Series 3,
4.750%, 11/01/2000.................................. 15,007,647
7,000,000 New York City, New York, City Municipal Water
Financing Authority, Water & Sewer Systems
Commercial Paper,
4.250%, 10/11/2000.................................. 7,000,000
1,500,000 New York City, New York, City Municipal Water
Financing Authority, Water & Sewer Systems
Commercial Paper, Series D,
3.950%, 10/05/2000.................................. 1,500,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$ 25,500,000 New York City, New York, General Obligation Bonds,
Subseries J2,
5.600%, 02/15/2016+............................... $ 25,500,000
4,000,000 New York City, New York, General
Obligation Commercial Paper, Series 94 H3,
4.250%, 12/11/2000................................ 4,000,000
3,500,000 New York City, New York, General
Obligation Commercial Paper, Series 94 H3,
4.250%, 01/17/2001................................ 3,500,000
2,800,000 New York City, New York, General
Obligation Commercial Paper, Series 94 H3,
4.250%, 01/17/2001................................ 2,800,000
7,900,000 New York City, New York, Housing Development Corp.
Multifamily Rent Housing Revenue Bonds, Parkgate
Development, Series A,
5.500%, 10/15/2028+............................... 7,900,000
2,000,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer System Revenue Bonds,
Series C,
5.550%, 06/15/2022+............................... 2,000,000
2,000,000 New York City, Transitional Financing Authority
Revenue Bonds, Future Tax Secured, Series A2,
5.500%, 11/15/2021+............................... 2,000,000
6,325,000 New York State Dormitory Authority, Columbia
University Commercial Paper, Series A,
4.100%, 11/10/2000................................ 6,325,000
10,000,000 New York State Dormitory Authority, Commercial
Paper,
4.150%, 11/10/2000................................ 10,000,000
3,200,000 New York State Dormitory Authority, Commercial
Paper,
4.200%, 01/17/2001................................ 3,200,000
7,500,000 New York State Dormitory Authority, Sinai Medical
Center Commercial Paper,
4.050%, 01/17/2001................................ 7,500,000
6,500,000 New York State Environmental Facilities Commercial
Paper,
4.150%, 12/07/2000................................ 6,500,000
17,000,000 New York State Environmental Facilities Commercial
Paper,
4.200%, 02/07/2001................................ 17,000,000
10,000,000 New York State Power Authority Commercial Paper,
4.050%, 10/02/2000................................ 10,000,000
17,000,000 New York State Power Authority Commercial Paper,
4.200%, 12/01/2000................................ 17,000,000
10,000,000 New York State Power Authority Commercial Paper,
4.250%, 01/12/2001................................ 10,000,000
</TABLE>
See Notes to Financial Statements
13
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
New York Tax-Exempt Money Fund -- (continued)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (continued)
$ 5,000,000 New York State Power Authority Commercial Paper,
Series D,
4.000%, 10/06/2000................................. $ 5,000,000
6,500,000 New York State Thruway Authority Commercial Paper,
4.200%, 02/08/2001................................. 6,500,000
10,000,000 New York State Thruway Authority Commercial Paper,
4.200%, 02/08/2001................................. 10,000,000
7,447,000 Oyster Bay, New York, Bond Anticipation Notes,
Series A,
5.250%, 04/26/2001................................. 7,481,331
10,000,000 Puerto Rico, Government Development Bank,
4.000%, 12/14/2000................................. 10,000,000
15,000,000 Rockland County, New York, Revenue Anticipation
Notes,
4.750%, 03/15/2001................................. 15,026,119
1,200,000 Westchester County, New York,
General Obligation Bonds, Series B,
4.500%, 11/15/2000................................. 1,200,944
------------
310,196,800
------------
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
41.52%
ABN AMRO BANK N.V./MORGAN GUARANTY TRUST
3,450,000 Long Island Power Authority, New York Electric
Systems Revenue Bonds, Series 6,
5.450%, 05/01/2033+................................ 3,450,000
BANK OF NEW YORK
4,500,000 New York City, New York, Industrial Development
Agency, Civic Facility Revenue Bonds, Children's
Oncology Society,
5.500%, 05/01/2021+................................ 4,500,000
35,000,000 Triborough Bridge & Tunnel Authority, New York,
Revenue Bonds, Series N17,
5.600%, 01/01/2003+................................ 35,000,000
BANK OF NOVA SCOTIA
4,800,000 New York State Local Government Assistance Corp.
Revenue Bonds, Series G,
5.250%, 04/01/2025+................................ 4,800,000
10,400,000 Suffolk County, New York, Water Authority Bond
Anticipation Notes,
5.350%, 11/01/2002+................................ 10,400,000
BANK ONE CHICAGO N.A.
1,500,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, New
York State Electric & Gas Co., Series D,
5.400%, 10/01/2029+................................ 1,500,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(continued)
BANK ONE N.A.
$ 3,700,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Niagara
Mohawk Power Corp. Project, Series B,
5.500%, 12/01/2025+................................. $ 3,700,000
3,100,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Niagara
Mohawk Power Corp. Project, Series C,
5.500%, 12/01/2025+................................. 3,100,000
BANKERS TRUST COMPANY
1,500,000 Dutchess County, New York, Industrial Development
Agency Revenue Bonds, Toys R Us-NYTEX, Inc. Project,
5.625%, 11/01/2019+................................. 1,500,000
BAYERISCHE LANDESBANK
500,000 Port Authority of New York & New Jersey, Special
Obligation Revenue Bonds, Versatile Structures,
5.450%, 08/01/2024+................................. 500,000
CHASE MANHATTAN BANK
5,000,000 New York City, New York, City Treasures Cultural
Reserve, Asia Society Revenue Bonds,
4.200%, 04/01/2030+................................. 5,000,000
27,000,000 New York City, New York, General Obligation Bonds,
Subseries B9,
5.600%, 08/15/2023+................................. 27,000,000
6,000,000 New York State Dormitory Authority, Revenue Bonds,
Memorial Sloan-Kettering, Series C,
5.500%, 07/01/2019+................................. 6,000,000
COMMERZBANK A.G.
20,035,000 New York City, New York, Health & Hospital Corp.
Health Systems Revenue Bonds, Series F,
5.250%, 02/15/2026+................................. 20,035,000
6,400,000 New York State Housing Finance Agency, Service
Contract Obligation Revenue Bonds, Series A,
5.400%, 03/15/2027+................................. 6,400,000
CREDIT LOCAL DE FRANCE
6,800,000 Niagara Falls, New York, Bridge Common Toll Revenue
Bonds, Series A, (FGIC),
5.250%, 10/01/2019+................................. 6,800,000
CREDIT SUISSE/FIRST BOSTON
2,200,000 Long Island Power Authority, New York Electric
Systems Revenue Bonds, Series 7B, (MBIA),
5.300%, 04/01/2025+................................. 2,200,000
</TABLE>
See Notes to Financial Statements
14
<PAGE>
Excelsior Tax-Exempt Funds, Inc.
Portfolio of Investments September 30, 2000 (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)
DEXIA CREDIT LOCAL DE FRANCE
$ 4,600,000 Yonkers, New York, Industrial Development Agency,
Civic Facility Revenue Bonds, Consumers
Union Facility,
5.500%, 07/01/2019+................................. $ 4,600,000
FIRST UNION NATIONAL BANK
8,895,000 New York State Dormitory Authority, New York Public
Library, Revenue Bonds, Series A,
4.000%, 07/01/2028.................................. 8,895,000
FIRST UNION NATIONAL BANK/BANK OF NOVA SCOTIA
10,000,000 Nassau County, New York Revenue Anticipation Notes,
Series A,
6.000%, 03/20/2001.................................. 10,068,304
LANDESBANK HESSEN-THURINGEN
10,005,000 New York City, New York General Obligation Bonds,
Series A6,
5.300%, 08/01/2019+................................. 10,005,000
MANUFACTURERS & TRADERS
8,800,000 New York City, New York, Industrial Development
Agency, Civic Facilities Revenue Bonds, Jewish
Community Center,
4.350%, 03/01/2030+................................. 8,800,000
MORGAN GUARANTY TRUST
2,300,000 Nassau County, New York, Industrial Development
Agency, Civic Facilities Revenue Bonds, Winthrop-
University Hospital Association Project,
5.500%, 03/01/2028+................................. 2,300,000
2,700,000 New York City, New York, General Obligation Bonds,
Series A8,
5.550%, 08/01/2018+................................. 2,700,000
11,000,000 New York State Dormitory Authority, Revenue Bonds,
Memorial Sloan-Kettering,
5.500%, 07/01/2026+................................. 11,000,000
3,650,000 Port Authority of New York & New Jersey, Special
Obligation Revenue Bonds, Versatile Structures,
5.450%, 06/01/2020+................................. 3,650,000
SOCIETE GENERALE
3,700,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Orange &
Rockland Utilities, Series A, (AMBAC),
5.250%, 08/01/2015+................................. 3,700,000
SOCIETE GENERALE/LANDESBANK HESSEN-THURINGEN
5,000,000 New York State Local Government Assistance Corp.
Revenue Bonds, Series E,
5.450%, 04/01/2025+................................. 5,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(continued)
TORONTO DOMINION BANK
$10,550,000 New York City, New York, General Obligation Bonds,
Series F2,
5.550%, 02/15/2012+................................ $ 10,550,000
WESTDEUTSCHE LANDESBANK
5,000,000 Triborough Bridge & Tunnel Authority, New York,
Revenue Bonds, Series C, (AMBAC),
5.300%, 01/01/2013+................................ 5,000,000
------------
228,153,304
------------
<CAPTION>
Shares
------
<C> <S> <C>
OTHER INVESTMENTS -- 2.55%
14,038,601 Provident Institutional New York Tax-Exempt Money
Fund............................................... 14,038,601
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $552,388,705*)...................................... 100.52% $552,388,705
OTHER ASSETS & LIABILITIES (NET).......................... (0.52) (2,881,461)
------ ------------
NET ASSETS................................................ 100.00% $549,507,244
====== ============
</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, 2000, approximately, 42% 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, 2000, approximately, 96% 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 (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
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 Money Fund, Government Money Fund,
Treasury 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.
With regard to the Money Fund and the Government Money Fund, Excelsior Fund
offers two classes of shares: Shares and Institutional Shares. At September
30, 2000, Government Money Fund has issued Institutional Shares. The Financial
Highlights of the Institutional Shares as well as 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
16
<PAGE>
subject to such repurchase agreements are deposited with Excelsior Fund's
custodian or subcustodian 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, 2000, 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 2008 Total
------- ---- ------- ------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Fund.............. -- -- -- $7,000 $12,000 -- -- -- $19,000
Government Money Fund... $10,000 -- $48,000 1,000 -- $ 6,000 $ 3,000 $19,000 87,000
Treasury Money Fund..... -- -- -- -- -- -- -- 22,000 22,000
Tax-Exempt Money Fund... -- -- -- -- 7,000 35,000 27,000 -- 69,000
New York Tax-Exempt
Money Fund............. -- -- -- -- -- -- -- 7,000 7,000
</TABLE>
(f) Expense Allocation:
Expenses directly attributable to a Portfolio are charged to that
Portfolio and expenses directly attributable to a particular class of
shares are charged to such a class. Other expenses are allocated to the
respective Portfolios based on average daily net assets.
17
<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 Money Fund, the Government 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 Corporation is a
wholly-owned subsidiary of The Charles Schwab Corporation ("Schwab").
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, 2000, administration fees charged by U.S. Trust Company
were as follows:
<TABLE>
<S> <C>
Money Fund....................................................... $370,259
Government Money Fund............................................ 256,736
Treasury Money Fund.............................................. 125,054
Tax-Exempt Money Fund............................................ 80,678
New York Tax-Exempt Money Fund................................... 117,108
</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. U.S. Trust has contractually agreed to waive investment
advisory fees and to reimburse other ordinary operating expenses through March
31, 2001 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>
Money Fund -- Shares................................................. 0.50%
Government Money Fund................................................ 0.50%
Treasury Money Fund.................................................. 0.55%
Tax-Exempt Money Fund................................................ 0.50%
New York Tax-Exempt Money Fund....................................... 0.60%
</TABLE>
With regard to the Institutional Share of Money Fund, U.S. Trust
contractually agreed to waive fees and reimburse expenses through March 31,
2001, to the extent necessary to maintain an annual expense ratio of not more
than .25%.
18
<PAGE>
For the six months ended September 30, 2000, U.S. Trust waived investment
advisory fees totaling $308,985 for Money Fund and $434,729 for New York Tax-
Exempt Money Fund, respectively.
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
$2,936,582 for the six months ended September 30, 2000. Through July 31, 2000,
U.S. Trust and the Administrators voluntarily agreed to waive investment
advisory and administration fees payable by each Portfolio in an amount equal
to the administrative service fees expense (including fees paid to affiliates
of U.S. Trust) by such Portfolio. Effective August 1, 2000, U.S. Trust has
voluntarily agreed to continue waiving investment advisory and administration
fees payable by each Portfolio in an amount equal to the administrative
services fees expense paid to subsidiaries of U.S. Trust Corporation. For the
six months ended September 30, 2000, 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>
Money Fund....................................... $1,838,481 --
Government Money Fund............................ 169,188 $ 21
Treasury Money Fund.............................. 96,401 --
Tax-Exempt Money Fund............................ 799,700 --
New York Tax-Exempt Money Fund................... 32,959 --
</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. Each member of the Nominating Committee receives an annual fee
of $2,000 for services in connection with this committee.
3. Common Stock:
Excelsior Fund has authorized capital of 35 billion shares of Common Stock,
28.875 billion of which is currently classified to represent interests in one
of eighteen separate investment portfolios. Excelsior Tax-Exempt Fund has
authorized capital of 24 billion shares of Common Stock, 14 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 Money Fund, Government Money
Fund, Treasury Money Fund, and New York Tax-Exempt Money Fund and 3 billion
shares for 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>
Money Fund
--------------------------------
Six Months Year Ended
Ended 09/30/00 03/31/00
--------------- ---------------
<S> <C> <C>
Sold:
Shares...................................... $ 4,047,308,591 $ 6,092,031,150
Institutional Shares*....................... 861,598,987 934,355,336
Issued as reinvestment of dividends:
Shares...................................... 6,811,666 5,196,004
Institutional Shares*....................... 1,752,842 514,849
Redeemed:
Shares...................................... (4,010,633,333) (5,603,747,004)
Institutional Shares*....................... (845,303,963) (661,873,162)
--------------- ---------------
Net Increase.................................. $ 61,534,790 $ 766,477,173
=============== ===============
<CAPTION>
Government Money Fund
--------------------------------
Six Months
Ended Year Ended
09/30/00 03/31/00
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 3,961,202,747 $ 6,769,848,784
Issued as reinvestment of dividends........... 3,450,659 2,370,376
Redeemed...................................... (3,723,480,876) (6,641,358,562)
--------------- ---------------
Net Increase.................................. $ 241,172,530 $ 130,860,598
=============== ===============
<CAPTION>
Treasury Money Fund
--------------------------------
Six Months
Ended Year Ended
09/30/00 03/31/00
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 1,564,351,077 $ 3,094,444,326
Issued as reinvestment of dividends........... 4,119,397 3,419,901
Redeemed...................................... (1,669,882,677) (3,066,662,817)
--------------- ---------------
Net Increase (Decrease)....................... $ (101,412,203) $ 31,201,410
=============== ===============
<CAPTION>
Tax-Exempt Money Fund
--------------------------------
Six Months
Ended Year Ended
09/30/00 03/31/00
--------------- ---------------
<S> <C> <C>
Sold.......................................... $ 4,076,144,469 $ 7,064,065,118
Issued as reinvestment of dividends........... 1,831,907 2,141,478
Redeemed...................................... (4,046,136,857) (6,518,247,292)
--------------- ---------------
Net Increase.................................. $ 31,839,519 $ 547,959,304
=============== ===============
</TABLE>
--------
*Institutional Shares of the Money Fund commenced operations December 16, 1999.
20
<PAGE>
<TABLE>
<CAPTION>
New York Tax-Exempt Money Fund
--------------------------------
Six Months Ended Period Ended
09/30/00 03/31/00
---------------- ---------------
<S> <C> <C>
Sold.......................................... $ 972,842,613 $ 1,354,331,537
Issued as reinvestment of dividends........... 1,251,397 874,191
Redeemed...................................... (845,990,372) (1,239,514,040)
------------- ---------------
Net Increase.................................. $ 128,103,638 $ 115,691,688
============= ===============
</TABLE>
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, 2000, the Portfolios had
no borrowings under the agreement.
21
