<PAGE>
[LOGO OF EXCELSIOR APPEARS HERE]
TAX-EXEMPT FIXED INCOME PORTFOLIOS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1997
<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
Tax-Exempt Money Fund.................................................... 6
Short-Term Tax-Exempt Securities Fund.................................... 11
Intermediate-Term Tax-Exempt Fund........................................ 13
New York Intermediate-Term Tax-Exempt Fund............................... 15
Long-Term Tax-Exempt Fund................................................ 17
California Tax-Exempt Income Fund........................................ 19
NOTES TO FINANCIAL STATEMENTS.............................................. 24
</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
. CURRENT PRICE AND YIELD INFORMATION 1-800-233-9180
This report must be preceded or accompanied by a current prospectus.
Prospectuses containing more complete information including charges and
expenses regarding Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc.
may be obtained by contacting the Funds at 1-800-446-1012.
Investors should read the current prospectus carefully prior to investing or
sending money.
Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. are sponsored and
distributed by Edgewood Services, Inc.
You may write to Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. at
the following address:
EXCELSIOR FUNDS, INC.
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, ITS PARENT OR AFFILIATES
AND SHARES ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. INVESTMENTS IN THE FUNDS INVOLVE
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. FUND SHARES ARE NOT
INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NEW YORK
SHORT-TERM INTERMEDIATE- INTERMEDIATE- CALIFORNIA
TAX-EXEMPT TAX-EXEMPT TERM TERM LONG-TERM TAX-EXEMPT
MONEY SECURITIES TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT INCOME
FUND FUND FUND FUND FUND FUND
-------------- ----------- ------------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at cost--
see accompanying
portfolios............ $1,129,417,234 $38,509,908 $234,846,564 $119,295,415 $125,417,817 $26,148,656
============== =========== ============ ============ ============ ===========
Investments, at value
(Note 1)............... $1,129,417,234 $38,916,512 $246,748,400 $123,857,651 $131,883,200 $26,615,025
Cash................... -- 40 16,523 383 42 --
Interest receivable.... 4,277,088 574,491 3,565,015 1,693,361 1,895,998 368,442
Receivable for fund
shares sold............ -- -- 87,984 61,991 232,145 499,998
Receivable due from
investment adviser..... -- -- -- -- -- 36,232
Prepaid expenses....... 14,678 479 3,296 1,383 1,564 197
Unamortized
organization
costs (Note 5)......... -- 1,078 -- -- -- 25,172
-------------- ----------- ------------ ------------ ------------ -----------
TOTAL ASSETS........... 1,133,709,000 39,492,600 250,421,218 125,614,769 134,012,949 27,545,066
LIABILITIES:
Payable for dividends
declared............... 3,015,835 110,678 827,407 350,738 393,368 84,381
Payable for fund shares
redeemed............... -- 3,990 67,224 4,483 315,447 350,518
Payable for investments
purchased.............. 12,000,000 -- -- 7,864,383 4,936,800 225,983
Investment advisory
fees
payable (Note 2)....... 225,731 10,597 72,890 48,398 52,620 --
Administration fees
payable (Note 2)....... 143,890 5,068 34,552 14,781 16,252 3,242
Administrative service
fees payable (Note 2).. 47,539 1,956 11,289 2,561 6,536 8,176
Directors' fees payable
(Note 2)............... 23,476 939 5,799 1,553 897 283
Due to custodian bank.. 2,046,013 -- -- -- -- --
Accrued expenses and
other payables......... 85,662 12,046 27,690 51,076 43,414 25,863
-------------- ----------- ------------ ------------ ------------ -----------
TOTAL LIABILITIES...... 17,588,146 145,274 1,046,851 8,337,973 5,765,334 698,446
-------------- ----------- ------------ ------------ ------------ -----------
NET ASSETS.............. $1,116,120,854 $39,347,326 $249,374,367 $117,276,796 $128,247,615 $26,846,620
============== =========== ============ ============ ============ ===========
NET ASSETS consist of:
Undistributed
(distributions in
excess of) net
investment income...... $ 13 $ (116) $ (46) $ -- $ 44,310 $ --
Accumulated net
realized gain (loss) on
investments............ (130,061) (649,326) (2,473,497) (1,492,080) 1,482,330 (233)
Unrealized appreciation
of investments......... -- 406,604 11,901,836 4,562,236 6,465,383 466,369
Par value (Note 4)..... 1,116,501 5,543 26,520 13,466 12,823 3,764
Paid-in capital in
excess of
par value.............. 1,115,134,401 39,584,621 239,919,554 114,193,174 120,242,769 26,376,720
-------------- ----------- ------------ ------------ ------------ -----------
TOTAL NET ASSETS........ $1,116,120,854 $39,347,326 $249,374,367 $117,276,796 $128,247,615 $26,846,620
============== =========== ============ ============ ============ ===========
Shares of Common Stock
Outstanding............. 1,116,500,963 5,543,443 26,519,772 13,465,590 12,823,101 3,763,593
NET ASSET VALUE PER
SHARE................... $1.00 $7.10 $9.40 $8.71 $10.00 $7.13
===== ===== ===== ===== ====== =====
</TABLE>
See Notes to Financial Statements
1
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NEW YORK
SHORT-TERM INTERMEDIATE- INTERMEDIATE- CALIFORNIA
TAX EXEMPT TAX-EXEMPT TERM TERM LONG-TERM TAX-EXEMPT
MONEY SECURITIES TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT INCOME
FUND FUND FUND FUND FUND FUND
----------- ---------- ------------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........... $19,825,613 $ 890,128 $ 6,124,809 $2,730,098 $3,051,791 $478,729
----------- ---------- ----------- ---------- ---------- --------
EXPENSES:
Investment advisory fees
(Note 2)................. 1,334,494 61,168 431,349 279,807 290,147 53,867
Administration fees (Note
2)....................... 816,710 31,196 188,561 85,621 88,785 16,483
Administrative servicing
fees (Note 2)............ 259,352 10,493 53,542 12,423 30,099 35,692
Shareholder servicing
agent fees............... 13,750 5,746 10,530 5,700 14,656 4,534
Custodian fees............ 141,301 5,974 31,300 14,718 15,295 3,650
Registration and filing
fees..................... 9,710 6,999 6,705 -- 3,652 496
Legal and audit fees...... 77,394 2,967 17,833 5,283 6,314 2,053
Directors' fees and ex-
penses (Note 2).......... 48,705 1,825 11,100 3,642 3,044 696
Shareholder reports....... 18,099 1,133 6,851 3,421 2,111 6,993
Amortization of
organization costs (Note
5)....................... -- 2,093 -- -- -- 3,153
Miscellaneous expenses.... 41,846 1,986 8,079 2,798 3,119 1,718
----------- ---------- ----------- ---------- ---------- --------
TOTAL EXPENSES............ 2,761,361 131,580 765,850 413,413 457,222 129,335
Fees waived by investment
adviser and
administrators (Note 2).. (259,352) (10,493) (53,542) (12,423) (30,099) (75,512)
----------- ---------- ----------- ---------- ---------- --------
NET EXPENSES.............. 2,502,009 121,087 712,308 400,990 427,123 53,823
----------- ---------- ----------- ---------- ---------- --------
NET INVESTMENT INCOME...... 17,323,604 769,041 5,412,501 2,329,108 2,624,668 424,906
----------- ---------- ----------- ---------- ---------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
(NOTE 1):
Net realized gain (loss)
on security
transactions............. (17,972) (12,031) 2,369,953 (41,887) 1,489,613 376
Change in unrealized
appreciation/depreciation
of investments during the
period................... -- 391,122 5,379,684 3,380,413 5,092,523 571,776
----------- ---------- ----------- ---------- ---------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... (17,972) 379,091 7,749,637 3,338,526 6,582,136 572,152
----------- ---------- ----------- ---------- ---------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................ $17,305,632 $1,148,132 $13,162,138 $5,667,634 $9,206,804 $997,058
=========== ========== =========== ========== ========== ========
</TABLE>
See Notes to Financial Statements
2
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NEW YORK
SHORT-TERM INTERMEDIATE- INTERMEDIATE- CALIFORNIA
TAX-EXEMPT TAX-EXEMPT TERM TERM LONG-TERM TAX-EXEMPT
MONEY SECURITIES TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT INCOME
FUND FUND FUND FUND FUND FUND*
-------------- ----------- ------------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED SEPTEMBER
30, 1997 (UNAUDITED)
Net investment income..... $ 17,323,604 $ 769,041 $ 5,412,501 $ 2,329,108 $ 2,624,668 $ 424,906
Net realized gain (loss)
on investments........... (17,972) (12,031) 2,369,953 (41,887) 1,489,613 376
Change in unrealized
appreciation/depreciation
of investments during the
period................... -- 391,122 5,379,684 3,380,413 5,092,523 571,776
-------------- ----------- ------------ ------------ ------------ -----------
Net increase in net assets
resulting from
operations............... 17,305,632 1,148,132 13,162,138 5,667,634 9,206,804 997,058
Distributions to
shareholders from net
investment income........ (17,323,591) (769,041) (5,412,501) (2,329,108) (2,609,980) (424,906)
Increase (decrease) in net
assets from fund share
transactions (Note 4).... 46,452,594 (2,109,413) (2,425,547) 11,686,277 13,724,339 13,042,495
-------------- ----------- ------------ ------------ ------------ -----------
Net increase (decrease) in
net assets............... 46,434,635 (1,730,322) 5,324,090 15,024,803 20,321,163 13,614,647
NET ASSETS:
Beginning of period...... 1,069,686,219 41,077,648 244,050,277 102,251,993 107,926,452 13,231,973
-------------- ----------- ------------ ------------ ------------ -----------
End of period (1)........ $1,116,120,854 $39,347,326 $249,374,367 $117,276,796 $128,247,615 $26,846,620
============== =========== ============ ============ ============ ===========
--------
(1) Including
undistributed
(distributions in
excess of) net
investment income..... $ 13 $ (116) $ (46) $ -- $ 44,310 $ --
============== =========== ============ ============ ============ ===========
YEAR ENDED MARCH 31, 1997
Net investment income..... $ 29,203,970 $ 1,537,819 $ 11,506,633 $ 4,102,269 $ 5,056,899 $ 142,822
Net realized gain (loss)
on investments........... (43,443) 7,159 2,576,821 93,370 1,286,294 (609)
Change in unrealized
appreciation/depreciation
of investments during the
year..................... -- (66,439) (2,844,780) (205,500) (726,474) (105,407)
-------------- ----------- ------------ ------------ ------------ -----------
Net increase in net assets
resulting from
operations............... 29,160,527 1,478,539 11,238,674 3,990,139 5,616,719 36,806
Distributions to
shareholders:
From net investment
income.................. (29,203,970) (1,556,834) (11,583,746) (4,102,269) (5,103,668) (142,822)
In excess of net
investment income....... -- (116) (46) -- -- --
From net realized gain on
investments............. -- -- -- -- (1,426,068) --
In excess of net realized
gain on investments..... -- -- -- -- (7,283) --
Increase (decrease) in net
assets from fund share
transactions (Note 4).... 103,018,169 (1,813,779) (10,782,881) 5,957,341 17,788,296 13,337,989
-------------- ----------- ------------ ------------ ------------ -----------
Net increase (decrease) in
net assets............... 102,974,726 (1,892,190) (11,127,999) 5,845,211 16,867,996 13,231,973
NET ASSETS:
Beginning of year........ 966,711,493 42,969,838 255,178,276 96,406,782 91,058,456 --
-------------- ----------- ------------ ------------ ------------ -----------
End of year (2).......... $1,069,686,219 $41,077,648 $244,050,277 $102,251,993 $107,926,452 $13,231,973
============== =========== ============ ============ ============ ===========
--------
(2) Including
undistributed
(distributions in
excess of) net
investment income..... $ -- $ (116) $ (46) $ -- $ 29,622 $ --
============== =========== ============ ============ ============ ===========
</TABLE>
* California Tax-Exempt Income Fund commenced operations on October 1, 1996.
See Notes to Financial Statements
3
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED DIVIDENDS DIVIDENDS DISTRIBUTIONS
VALUE, NET AND UNREALIZED TOTAL FROM FROM NET IN EXCESS OF FROM NET
BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT NET INVESTMENT REALIZED GAIN
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INCOME ON INVESTMENTS
--------- ---------- -------------- ---------- ---------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAX-EXEMPT MONEY FUND--(5/24/85*)
Year Ended March 31,
1993................... $1.00 $0.02395 -- $0.02395 $(0.02395) -- --
1994................... 1.00 0.01938 -- 0.01938 (0.01938) -- --
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) -- --
Six Months Ended
September 30, 1997
(Unaudited)............ 1.00 0.01628 -- 0.01628 (0.01628) -- --
SHORT-TERM TAX-EXEMPT SECURITIES FUND--(12/31/92*)
Year Ended March 31,
1993................... $7.00 $ 0.05 $ 0.07 $ 0.12 $ (0.05) -- --
1994................... 7.07 0.21 (0.03) 0.18 (0.21) -- $(0.05)
1995................... 6.99 0.25 (0.02) 0.23 (0.25) -- (0.01)
1996................... 6.96 0.28 0.09 0.37 (0.28) -- --
1997................... 7.05 0.26 (0.01) 0.25 (0.27) -- # --
Six Months Ended
September 30, 1997
(Unaudited)............ 7.03 0.13 0.07 0.20 (0.13) -- --
INTERMEDIATE-TERM TAX-EXEMPT FUND--(12/3/85*)
Year Ended March 31,
1993................... $8.95 $ 0.42 $ 0.59 $ 1.01 $ (0.42) -- $(0.30)
1994................... 9.24 0.34 (0.09) 0.25 (0.34) -- (0.26)
1995................... 8.64 0.37 0.16 0.53 (0.37) -- --
1996................... 8.80 0.40 0.32 0.72 (0.40) -- --
1997................... 9.12 0.40 -- 0.40 (0.41) -- # --
Six Months Ended
September 30, 1997
(Unaudited)............ 9.11 0.20 0.29 0.49 (0.20) -- --
N.Y. INTERMEDIATE-TERM TAX-EXEMPT FUND--(5/31/90*)
Year Ended March 31,
1993................... $8.31 $ 0.34 $ 0.41 $ 0.75 $ (0.34) -- $(0.11)
1994................... 8.61 0.31 (0.13) 0.18 (0.31) -- (0.22)
1995................... 8.18 0.33 0.15 0.48 (0.33) -- (0.09)
1996................... 8.24 0.35 0.20 0.55 (0.35) -- --
1997................... 8.44 0.36 0.01+++ 0.37 (0.36) -- --
Six Months Ended
September 30, 1997
(Unaudited)............ 8.45 0.18 0.26 0.44 (0.18) -- --
LONG-TERM TAX-EXEMPT FUND--(2/5/86*)
Year Ended March 31,
1993................... $9.25 $ 0.46 $ 0.99 $ 1.45 $ (0.46) -- $(0.48)
1994................... 9.76 0.42 (0.12) 0.30 (0.42) -- (0.50)
1995................... 8.87 0.43 0.50 0.93 (0.43) -- (0.10)
1996................... 9.27 0.47 0.39 0.86 (0.46) -- (0.14)
1997................... 9.53 0.46 0.03 0.49 (0.46) -- (0.13)
Six Months Ended
September 30, 1997
(Unaudited)............ 9.43 0.22 0.57 0.79 (0.22) -- --
CALIFORNIA TAX-EXEMPT INCOME FUND--(10/1/96*)
Period ended March 31,
1997................... $7.00 $ 0.12 $(0.05) $ 0.07 $ (0.12) -- --
Six Months Ended
September 30, 1997
(Unaudited)............ 6.95 0.14 0.18 0.32 (0.14) -- --
</TABLE>
* Commencement of operations.
** Annualized.
*** Not annualized.
+ Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
++ Total return data, for periods prior to March 31, 1997, does not reflect
the sales load payable on purchases of shares. The sales load was
eliminated effective February 14, 1997.
+++ The amount shown for the year ended March 31, 1997 for a share outstanding
throughout that year does not accord with the aggregate net gains on
investments for that year because of the timing of sales and repurchases
of the Portfolio shares in relation to fluctuating market value of the
investments of the Portfolio.
# Amount represents less than $0.01 per share.
See Notes to Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTIONS RATIO OF NET RATIO OF GROSS RATIO OF NET
IN EXCESS OF NET ASSETS, OPERATING OPERATING INVESTMENT
NET REALIZED NET ASSET END OF EXPENSES EXPENSES INCOME
GAIN ON TOTAL VALUE, END TOTAL PERIOD TO AVERAGE TO AVERAGE TO AVERAGE
INVESTMENTS DISTRIBUTIONS OF PERIOD RETURN++ (000) NET ASSETS NET ASSETS+ NET ASSETS
------------- ------------- ---------- -------- ----------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAX-EXEMPT MONEY FUND--(5/24/85*)
Year Ended March 31,
1993................... -- $(0.02395) $ 1.00 2.42% $ 659,327 0.52% 0.52% 2.39%
1994................... -- (0.01938) 1.00 1.96% 694,581 0.52% 0.52% 1.94%
1995................... -- (0.02825) 1.00 2.86% 814,890 0.49% 0.52% 2.85%
1996................... -- (0.03362) 1.00 3.41% 966,711 0.49% 0.53% 3.35%
1997................... -- (0.03050) 1.00 3.09% 1,069,686 0.47% 0.52% 3.05%
Six Months Ended
September 30, 1997
(Unaudited)............ -- (0.01628) 1.00 1.64%*** 1,116,121 0.47%** 0.52%** 3.25%**
SHORT-TERM TAX-EXEMPT SECURITIES FUND--(12/31/92*)
Year Ended March 31,
1993................... -- $ (0.05) $ 7.07 1.65%*** $ 28,598 0.60%** 0.84%** 2.80%**
1994................... -- (0.26) 6.99 2.55% 57,728 0.59% 0.60% 2.94%
1995................... -- (0.26) 6.96 3.45% 48,188 0.59% 0.61% 3.60%
1996................... -- (0.28) 7.05 5.42% 42,970 0.58% 0.64% 4.05%
1997................... -- (0.27) 7.03 3.55% 41,078 0.58% 0.65% 3.73%
Six Months Ended
September 30, 1997
(Unaudited)............ -- (0.13) 7.10 2.92%*** 39,347 0.59%** 0.65%** 3.77%**
INTERMEDIATE-TERM TAX-EXEMPT FUND--(12/3/85*)
Year Ended March 31,
1993................... -- $ (0.72) $ 9.24 11.70% $ 285,317 0.64% 0.64% 4.57%
1994................... (0.25) (0.85) 8.64 2.58% 298,261 0.64% 0.64% 3.74%
1995................... -- (0.37) 8.80 6.34% 234,990 0.61% 0.64% 4.28%
1996................... -- (0.40) 9.12 8.30% 255,178 0.60% 0.65% 4.44%
1997................... -- (0.41) 9.11 4.58% 244,050 0.58% 0.64% 4.56%
Six Months Ended
September 30, 1997
(Unaudited)............ -- (0.20) 9.40 5.47%*** 249,374 0.58%** 0.62%** 4.39%**
N.Y. INTERMEDIATE-TERM TAX-EXEMPT FUND--(5/31/90*)
Year Ended March 31,
1993................... -- $ (0.45) $ 8.61 9.27% $ 88,249 0.89% 0.89% 3.94%
1994................... $(0.08) (0.61) 8.18 1.87% 107,489 0.87% 0.87% 3.55%
1995................... -- (0.42) 8.24 6.05% 87,164 0.78% 0.80% 4.06%
1996................... -- (0.35) 8.44 6.77% 96,407 0.75% 0.77% 4.15%
1997................... -- (0.36) 8.45 4.46% 102,252 0.72% 0.75% 4.25%
Six Months Ended
September 30, 1997
(Unaudited)............ -- (0.18) 8.71 5.24%*** 117,277 0.72%** 0.74%** 4.16%**
LONG-TERM TAX-EXEMPT FUND--(2/5/86*)
Year Ended March 31,
1993................... -- $ (0.94) $ 9.76 16.35% $ 85,520 0.86% 0.86% 4.73%
1994................... $(0.27) (1.19) 8.87 2.38% 82,151 0.85% 0.86% 4.25%
1995................... -- (0.53) 9.27 11.01% 78,880 0.80% 0.83% 4.86%
1996................... -- (0.60) 9.53 9.35% 91,058 0.77% 0.82% 4.85%
1997................... -- # (0.59) 9.43 5.47% 107,926 0.74% 0.81% 4.80%
Six Months Ended
September 30, 1997
(Unaudited)............ -- (0.22) 10.00 8.23%*** 128,248 0.74%** 0.79%** 4.52%**
CALIFORNIA TAX-EXEMPT INCOME FUND--(10/1/96*)
Period ended March 31,
1997................... -- $ (0.12) $ 6.95 2.12%** $ 13,232 0.66%** 1.53%** 3.69%**
Six Months Ended
September 30, 1997
(Unaudited)............ -- (0.14) 7.13 4.64%*** 26,847 0.50%** 1.20%** 3.94%**
<CAPTION>
PORTFOLIO FEE
TURNOVER WAIVERS
RATE (NOTE 2)
--------- --------
<C> <C>
TAX-EXEMPT MONEY FUND--(5/24/85*)
Year Ended March 31,
1993................... -- --
1994................... -- $0.00003
1995................... -- 0.00030
1996................... -- 0.00042
1997................... -- 0.00053
Six Months Ended
September 30, 1997
(Unaudited)............ -- 0.00024
SHORT-TERM TAX-EXEMPT SECURITIES FUND--(12/31/92*)
Year Ended March 31,
1993................... -- --
1994................... 539% --
1995................... 565% --
1996................... 124% --
1997................... 87% -- #
Six Months Ended
September 30, 1997
(Unaudited)............ 47%** -- #
INTERMEDIATE-TERM TAX-EXEMPT FUND--(12/3/85*)
Year Ended March 31,
1993................... 429% --
1994................... 379% --
1995................... 362% --
1996................... 50% --
1997................... 28% -- #
Six Months Ended
September 30, 1997
(Unaudited)............ 43%** -- #
N.Y. INTERMEDIATE-TERM TAX-EXEMPT FUND--(5/31/90*)
Year Ended March 31,
1993................... 339% --
1994................... 326% --
1995................... 563% --
1996................... 154% --
1997................... 89% -- #
Six Months Ended
September 30, 1997
(Unaudited)............ 28%** -- #
LONG-TERM TAX-EXEMPT FUND--(2/5/86*)
Year Ended March 31,
1993................... 300% --
1994................... 252% --
1995................... 214% --
1996................... 185% $ 0.01
1997................... 125% 0.01
Six Months Ended
September 30, 1997
(Unaudited)............ 132%** -- #
CALIFORNIA TAX-EXEMPT INCOME FUND--(10/1/96*)
Period ended March 31,
1997................... 7%** $ 0.03
Six Months Ended
September 30, 1997
(Unaudited)............ 5%** 0.02
</TABLE>
* Commencement of operations.
** Annualized.
*** Not annualized.
+ Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
++ Total return data, for periods prior to March 31, 1997, does not reflect
the sales load payable on purchases of shares. The sales load was
eliminated effective February 14, 1997.
+++ The amount shown for the year ended March 31, 1997 for a share outstanding
throughout that year does not accord with the aggregate net gains on
investments for that year because of the timing of sales and repurchases
of the Portfolio shares in relation to fluctuating market value of the
investments of the Portfolio.
# Amount represents less than $0.01 per share.
See Notes to Financial Statements
5
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
TAX-EXEMPT MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT
SECURITIES -- 63.46%
$ 5,500,000 Becker, Minnesota, Pollution Control Revenue
Bonds, Northern State Power Co. Project,
3.700%, 11/12/1997................................ $ 5,500,000
12,000,000 Custer County, Idaho, Pollution Control Revenue
Bonds, Amoco Project Standard Oil Industries,
3.750%, 10/01/2009+............................... 12,000,000
11,300,000 Gulf Coast Waste Disposal Authority, Texas,
Pollution Control Refunding Revenue Bonds, Amoco
Oil Co. Project,
3.750%, 10/01/2017+............................... 11,300,000
12,900,000 Harris County, Texas, Industrial Development Corp.
Pollution Control Revenue Bonds, Exxon Corp.,
3.900%, 03/01/2024+............................... 12,900,000
2,000,000 Houston, Texas, General Obligation Commercial
Paper, Series A,
3.700%, 11/17/1997................................ 2,000,000
10,000,000 Houston, Texas, General Obligation Commercial
Paper, Series B,
3.750%, 11/14/1997................................ 10,000,000
15,000,000 Houston, Texas, General Obligation Commercial
Paper, Series B,
3.700%, 11/20/1997................................ 15,000,000
15,000,000 Houston, Texas, Water & Sewer Revenue,
3.750%, 11/17/1997................................ 15,000,000
16,000,000 Howard County, Maryland, Bond Anticipation Notes,
3.700%, 11/14/1997................................ 16,000,000
25,000,000 Howard County, Maryland, Bond Anticipation Notes,
3.750%, 12/19/1997................................ 25,000,000
10,000,000 Jacksonville, Florida, Electric Authority Revenue
Bonds,
3.800%, 11/12/1997................................ 10,000,000
11,700,000 Jacksonville, Florida, Pollution Control Revenue
Bonds, Florida Power & Light,
3.800%, 02/13/1998................................ 11,700,000
15,000,000 Jasper County, Indiana, Pollution Control Revenue
Bonds, Northern Indiana Public Service Co.
Project, Series C,
3.700%, 12/15/1997................................ 15,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT
SECURITIES -- (CONTINUED)
$12,200,000 Jasper County, Indiana, Pollution Control Revenue
Bonds, Northern Indiana Public Service Co.
Project, Series C,
3.850%, 12/17/1997................................ $ 12,200,000
14,500,000 Jasper County, Indiana, Pollution Control Revenue
Bonds, Northern Indiana Public Service Co.
Project, Series C,
3.850%, 12/17/1997................................ 14,500,000
8,000,000 Jefferson County, Kentucky, Pollution Control
Revenue Bonds, Louisville Gas & Electric Co.
Project,
3.700%, 10/22/1997................................ 8,000,000
15,500,000 Jefferson County, Kentucky, Pollution Control
Revenue Bonds, Louisville Gas & Electric Co.
Project, Series 1996-A,
3.750%, 12/16/1997................................ 15,500,000
10,000,000 King County, Washington, Sewer Revenue Bond
Anticipation Notes,
3.750%, 12/17/1997................................ 10,000,000
15,000,000 Monroe County, New York, Bond Anticipation Notes,
4.250%, 12/12/1997................................ 15,018,229
30,000,000 Nassau County, New York, Revenue Anticipation
Notes, Series A,
4.250%, 03/10/1998................................ 30,051,229
15,000,000 New York City, New York, General Obligation Bonds,
Series J-3,
3.750%, 11/18/1997................................ 15,000,000
15,000,000 New York City, New York, Municipal Water Finance
Authority,
3.800%, 12/18/1997................................ 15,000,000
26,500,000 Nueces River, Texas, Industrial Development
Authority, Pollution Control Revenue, San Miguel
Electric Co., (CFC),
3.800%, 12/09/1997................................ 26,500,000
5,900,000 Ohio State Pollution Control Revenue Refunding,
Cleveland Electric Co., Series 1988-B, (FGIC),
3.700%, 11/12/1997................................ 5,900,000
8,800,000 Oklahoma State Water Resources Board State Loan
Program Revenue Bonds,
3.750%, 09/01/2024+............................... 8,800,000
</TABLE>
See Notes to Financial Statements
6
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
TAX-EXEMPT MONEY FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT
SECURITIES -- (CONTINUED)
$10,000,000 Omaha Public Power District, Nebraska Electric
Revenue,
3.650%, 10/15/1997................................ $ 10,000,000
7,460,000 Omaha Public Power District, Nebraska Electric
Revenue,
3.800%, 11/19/1997................................ 7,460,000
7,500,000 Parish of St. James, Louisiana, Pollution Control
Revenue, Texaco Project,
3.700%, 10/07/1997................................ 7,500,000
6,500,000 Pleasant Prairie, Wisconsin, Pollution Control
Refunding Revenue Bonds, Wisconsin Electric Power
Co., Series A,
4.100%, 09/01/2030+............................... 6,500,000
5,000,000 Pleasant Prairie, Wisconsin, Pollution Control
Refunding Revenue Bonds, Wisconsin Electric Power
Co., Series C,
4.100%, 09/01/2030+............................... 5,000,000
2,000,000 Purdue University, Indiana, University Revenue
Bonds, Student Fee, Series H,
3.950%, 07/01/2017+............................... 2,000,000
11,460,000 Salt River Project, Arizona, Commercial Paper,
3.550%, 10/02/1997................................ 11,460,000
10,800,000 Salt River Project, Arizona, Commercial Paper,
3.750%, 12/16/1997................................ 10,800,000
11,000,000 Salt River Project, Arizona, Commercial Paper,
3.800%, 12/16/1997................................ 11,000,000
12,900,000 San Antonio, Texas, Electric & Gas Revenue Bonds,
Series A,
3.750%, 10/01/1997................................ 12,900,000
18,200,000 San Antonio, Texas, Electric & Gas Revenue Bonds,
Series A,
3.700%, 10/22/1997................................ 18,200,000
10,000,000 San Antonio, Texas, Electric & Gas Revenue Bonds,
Series A,
3.750%, 11/12/1997................................ 10,000,000
24,300,000 San Antonio, Texas, Electric & Gas Revenue Bonds,
Series A,
3.700%, 12/16/1997................................ 24,300,000
10,000,000 Shelby County, Tennessee, Bond Anticipation Notes,
3.800%, 02/17/1998................................ 10,000,000
15,660,000 South Carolina State, Public Service Authority
Commercial Paper,
3.700%, 10/16/1997................................ 15,660,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT
SECURITIES -- (CONTINUED)
$20,000,000 South Carolina State, Public Service Authority
Commercial Paper,
3.650%, 10/23/1997................................ $ 20,000,000
16,150,000 South Carolina State, Public Service Authority
Commercial Paper,
3.700%, 11/13/1997................................ 16,150,000
25,000,000 South Carolina State, Public Service Authority
Commercial Paper,
3.750%, 02/18/1998................................ 25,000,000
15,000,000 Texas Municipal Power Authority, Bond Anticipation
Notes,
3.700%, 12/15/1997................................ 15,000,000
15,000,000 Texas, Public Facilities Authority,
3.700%, 10/21/1997................................ 15,000,000
15,750,000 University of Michigan Hospital Revenue Bonds,
Series A,
3.800%, 12/01/2027+............................... 15,750,000
12,500,000 University of Texas, Permanent University Funding,
3.700%, 10/16/1997................................ 12,500,000
15,808,000 University of Texas, System Revenue Funding,
Commercial Paper, Series A,
3.700%, 11/13/1997................................ 15,808,000
10,000,000 University of Texas, System Revenue Funding,
Commercial Paper, Series A,
3.750%, 01/23/1998................................ 10,000,000
10,000,000 University of Texas, System Revenue Funding,
Commercial Paper, Series A,
3.700%, 02/19/1998................................ 10,000,000
30,100,000 Utah, General Obligation Bonds,
3.750%, 02/11/1998................................ 30,100,000
15,000,000 Wisconsin State, General Obligation Bonds,
Certificates of Participation,
3.800%, 12/12/1997................................ 15,000,000
7,340,000 York County, South Carolina Pollution Control
Revenue Bonds, North Carolina Electric Project,
Series 84N-3, (CFC),
3.700%, 09/15/2014+............................... 7,333,193
--------------
708,290,651
--------------
</TABLE>
See Notes to Financial Statements
7
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
TAX-EXEMPT MONEY FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENTS --
BACKED BY LETTERS OF CREDIT -- 37.72%
ABN AMRO BANK
-------------
$ 6,900,000 Guadalupe, Texas, Blanco River Authority Pollution
Control Refunding Revenue Bonds, Central Power &
Light Co. Project,
4.000%, 11/01/2015+............................... $ 6,900,000
2,100,000 Illinois Health Facilities Authority Revenue
Bonds, Palos Community Hospital, Series B,
4.100%, 12/01/2015+............................... 2,100,000
BANK OF AMERICA
---------------
25,000,000 Intermountain Power Agency, Utah, Power Supply
Revenue Bonds,
3.700%, 10/14/1997................................ 25,000,000
BANK OF NEW YORK
----------------
10,000,000 Ohio County, Kentucky, Pollution Control Revenue
Bonds, Big Rivers Electric Corp., Series 1983,
4.650%, 06/01/2013+............................... 10,000,000
BANK OF NOVA SCOTIA
-------------------
10,200,000 Gary, Indiana, Environmental Improvement Revenue
Notes, U.S. Steel Corp. Project, Series 1984,
3.800%, 07/15/2002+............................... 10,200,000
1,700,000 New Hampshire State Industrial Development
Authority, Pollution Control Revenue Bonds, Bangor
Hydro-Electric Co. Project, Series 1983,
3.700%, 01/01/2009+............................... 1,700,000
BANK OF TOKYO
-------------
13,965,000 University of Iowa, Facilities Revenue Bonds,
Human Biology Research, Series A,
4.250%, 06/01/2005+............................... 13,965,000
BARCLAYS BANK, PLC
------------------
7,700,000 Bucks County, Pennsylvania, Industrial Development
Authority Revenue Bonds, Tru Realty--Toys R Us
Project,
3.550%, 12/01/2018+............................... 7,700,000
BAY-LANDES BANK; BAY-HESSEN
---------------------------
5,000,000 New York State Environmental, Series 1997-A,
3.650%, 11/20/1997................................ 5,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENTS --
BACKED BY LETTERS OF CREDIT -- (CONTINUED)
CANADIAN IMPERIAL BANK OF COMMERCE
----------------------------------
$10,500,000 North Carolina Eastern Municipal Power Agency,
3.750%, 02/12/1998............................ $ 10,500,000
CREDIT SUISSE
-------------
6,050,000 Dallas Area Rapid Transit, Commercial Paper,
3.750%, 11/14/1997............................ 6,050,000
26,000,000 Dallas Area Rapid Transit, Commercial Paper,
3.750%, 12/18/1997............................ 26,000,000
6,900,000 Garden City, Kansas, Industrial Development
Revenue Bonds, Inland Container Corp. Project,
Temple Series 1983,
3.700%, 01/01/2008+........................... 6,900,000
FIRST NATIONAL BANK OF CHICAGO
------------------------------
36,100,000 Coastal Bend Health Facilities Development
Corp., Texas, Incarnate Health System,
4.050%, 08/15/2027+........................... 36,100,000
FUJI BANK LTD NY
17,135,000 Des Moines, Iowa, Hospital Facilities Revenue
Bonds, Iowa Methodist Medical Center Project,
4.050%, 08/01/2015+........................... 17,135,000
KREDIETBANK, N.V.
-----------------
6,195,000 Illinois Health Facilities Authority Revenue
Bonds, Memorial Medical Center, Series C,
4.050%, 01/01/2016+........................... 6,195,000
LASALLE NATIONAL BANK
---------------------
16,000,000 Flint, Michigan, Hospital Building Authority
Revenue Bonds, Hurley Medical Center, Series
B,
4.050%, 07/01/2015+........................... 16,000,000
3,000,000 Grand Forks, North Dakota, Hospital Facilities
Revenue Bonds, United Hospital Obligation
Group Project,
3.850%, 12/01/2016+........................... 3,000,000
13,000,000 Illinois Health Facilities Authority Revenue
Bonds, Ingalls Memorial Hospital, Series B,
4.050%, 01/01/2016+........................... 13,000,000
6,000,000 Illinois Health Facilities Authority Revenue
Bonds, Ingalls Memorial Hospital, Series C,
4.050%, 01/01/2016+........................... 6,000,000
</TABLE>
See Notes to Financial Statements
8
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
TAX-EXEMPT MONEY FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENTS --
BACKED BY LETTERS OF CREDIT -- (CONTINUED)
MORGAN GUARANTY TRUST CO.
-------------------------
$26,000,000 Baltimore, Maryland, Port Facilities Revenue
Bonds, Occidental Petroleum,
3.600%, 10/14/2011+.......................... $ 26,000,000
4,800,000 Birmingham, Alabama, Medical Clinic Board
Revenue Bonds,
3.900%, 12/01/2026+.......................... 4,800,000
6,900,000 Kenton County, Kentucky, Industrial Building
Revenue Bonds, Redken Labs, Inc. Project,
Series 1984,
3.600%, 12/01/2014+.......................... 6,900,000
34,820,000 Louisiana State Offshore Terminal Authority
Deepwater Port Revenue Bonds,
4.000%, 09/01/2008+.......................... 34,820,000
12,000,000 Missouri State, Health and Educational
Facilities Authority,
3.800%, 01/28/1998........................... 12,000,000
NORDEUTSCHE LANDESBANK
----------------------
14,800,000 Brazos, Texas, Harbor Industrial Development
Corp. Revenue Bonds, Badische Corp.,
3.550%, 12/01/2013+.......................... 14,800,000
RABOBANK NEDERLAND
------------------
7,170,000 Indiana Health Facilities Financing Authority
Revenue Bonds, St. Anthony's Medical Center
Project,
4.100%, 12/01/2017+.......................... 7,170,000
SANWA BANK
----------
4,600,000 Michigan State Job Development Authority
Revenue Bonds, Hitachi Metals International
Project,
3.850%, 01/01/2004+.......................... 4,600,000
33,530,000 Missouri State Environmental Improvement &
Energy Resources Authority, Pollution Control
Revenue Bonds, Noranda Aluminum, Inc.
Project,
4.250%, 10/01/2002+.......................... 33,530,000
SUMITOMO BANK LTD.
------------------
2,750,000 District of Columbia, Revenue Bonds, George
Washington University,
4.250%, 03/01/2006+.......................... 2,750,000
3,200,000 District of Columbia, Revenue Bonds, George
Washington University, Series A,
4.250%, 03/01/2006........................... 3,200,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENTS --
BACKED BY LETTERS OF CREDIT -- (CONTINUED)
$10,200,000 Wake County, North Carolina, Industrial
Facilities & Pollution Control Financing
Authority Revenue Bonds, Carolina Power & Light
Co. Project, Series
1985-B,
4.150%, 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. Project, Series
1985-C,
4.150%, 10/01/2015+.............................. 12,900,000
SWISS BANK
----------
8,000,000 Intermountain Power Agency, Utah, Power Supply
Revenue Bonds,
3.700%, 11/12/1997............................... 8,000,000
5,900,000 McIntosh, Alabama, Industrial Development Board,
Pollution Control Revenue Bonds, Ciba-Geigy Corp.
Project, Series A,
4.000%, 12/01/2003+.............................. 5,900,000
UNION BANK OF SWITZERLAND
-------------------------
4,000,000 New York State, Energy Research & Development
Authority Pollution Control Revenue Bonds, New
York State Electric & Gas, Series D,
3.875%, 12/01/2015+.............................. 3,994,583
--------------
421,009,583
--------------
<CAPTION>
SHARES
-----------
<C> <S> <C>
OTHER INVESTMENTS -- 0.01%
117,000 Dreyfus Tax-Exempt Cash Management Fund.......... 117,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $1,129,417,234*).................................. 101.19% $1,129,417,234
OTHER ASSETS & LIABILITIES (NET)........................ (1.19) (13,296,380)
------ --------------
NET ASSETS.............................................. 100.00% $1,116,120,854
====== ==============
</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.
CFC--National Rural Utilities Cooperative Finance Corp.
FGIC--Financial Guaranty Insurance Corp.
See Notes to Financial Statements
9
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
TAX-EXEMPT MONEY FUND -- (CONTINUED)
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, 1997, approximately, 29% 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, 1997, approximately, 30% 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
10
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
SHORT-TERM TAX-EXEMPT SECURITIES FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 91.39%
$2,000,000 Alabama State Refunding General Obligation Bonds,
5.900%, 03/01/1999................................... $ 2,053,240
1,700,000 Burlington County, New Jersey, General Obligation
Bonds,
5.200%, 10/01/2000................................... 1,757,188
1,500,000 Connecticut State General Obligation Bonds, Series C,
5.100%, 03/15/2000................................... 1,536,825
1,100,000 Connecticut State Special Tax Obligation Refunding
Revenue Bonds, Transportation Infrastructure
Purposes, Series C, (FGIC),
5.500%, 10/01/2000................................... 1,144,044
4,000,000 Delaware State General Obligation Bonds, Series B,
5.000%, 05/01/2000................................... 4,099,200
1,000,000 Harris County, Texas, General Obligation Bonds,
5.800%, 10/01/1999................................... 1,032,560
1,000,000 Hawaii State, Public Improvements General Obligation
Bonds, Series CK,
5.000%, 09/01/1998................................... 1,011,800
1,500,000 Houston, Texas, Refunding General Obligation Bonds,
Series C,
5.500%, 03/01/1999................................... 1,532,565
1,700,000 Metropolitan Atlanta Rapid Transit Authority,
Georgia, Sales Tax Refunding Revenue Bonds, Series M,
(MBIA),
5.900%, 07/01/1999................................... 1,751,697
1,900,000 Mississippi State General Obligation Bonds, Series B,
5.000%, 08/01/1999................................... 1,935,910
1,275,000 Monmouth County, New Jersey, General Obligation
Bonds,
5.000%, 10/01/2000................................... 1,310,012
1,900,000 Monroe County, New York, Refunding Public Improvement
General Obligation Bonds, Series A,
5.000%, 03/01/2001................................... 1,952,155
2,000,000 Municipal Assistance Corporation for New York City,
New York, Revenue Bonds, Series E,
5.500%, 07/01/2000................................... 2,074,160
2,000,000 New Jersey State Transportation Corp. Revenue Bonds,
Capital Grant Anticipation Notes, Series A, (FSA)
5.250%, 09/01/2001................................... 2,068,100
1,900,000 New York City, New York, Trust for Cultural
Resources, Museum of Modern Art Revenue Bonds, Series
A, (AMBAC),
5.000%, 01/01/2000................................... 1,941,667
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$2,000,000 New York State Local Government Assistance
Corporation, Revenue Bonds, Series B,
5.100%, 04/01/1999.................................... $ 2,031,200
4,000,000 Pennsylvania State General Obligation Bonds, 2nd
Series,
5.400%, 07/01/2000.................................... 4,127,480
1,000,000 South Columbia Basin, Washington, Irrigation District,
Refunding Revenue Bonds,
5.750%, 12/01/2000.................................... 1,048,210
1,500,000 Union County, New Jersey, Improvement Authority
Revenue Bonds, Correctional Facilities Project,
5.400%, 06/15/2000.................................... 1,552,515
-----------
35,960,528
-----------
TAX-EXEMPT SECURITIES -- ESCROWED IN
U.S. GOVERNMENTS -- 5.68%
2,000,000 New York State, Local Assistance Corp. Revenue Bonds,
Series B,
7.250%, 04/01/2005
(Prerefunded 04/01/01)................................ 2,235,540
-----------
TAX-EXEMPT SECURITIES -- BACKED BY
LETTERS OF CREDIT -- 1.27%
RABOBANK NEDERLAND
------------------
500,000 Indiana Health Facilities Financing Authority Revenue
Bonds, St. Anthony's Medical Center Project,
4.100%, 12/01/2014+................................... 500,000
-----------
<CAPTION>
SHARES
----------
<C> <S> <C>
OTHER INVESTMENTS -- 0.56%
220,444 Dreyfus Tax-Exempt Cash Management Fund............... 220,444
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $38,509,908*)........................................ 98.90% $38,916,512
OTHER ASSETS & LIABILITIES (NET)........................... 1.10 430,814
------ -----------
NET ASSETS................................................. 100.00% $39,347,326
====== ===========
</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.
See Notes to Financial Statements
11
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
SHORT-TERM TAX-EXEMPT SECURITIES FUND -- (CONTINUED)
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, 1997, approximately, 7% 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, 1997, approximately, 26% 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
12
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
INTERMEDIATE-TERM TAX-EXEMPT FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 85.23%
$10,000,000 Alabama State Public School & College Authority,
Capital Improvement Revenue Bonds, (MBIA),
5.250%, 11/01/2005.................................. $ 10,482,500
10,000,000 California State Public Improvement General
Obligation Bonds, (FGIC),
7.500%, 11/01/2003.................................. 11,726,300
10,000,000 Cobb County, Georgia School District, General
Obligation Bonds,
4.750%, 02/01/2005.................................. 10,185,400
10,000,000 Connecticut State General Obligation Bonds, Series
C,
5.500%, 08/01/2006.................................. 10,669,200
10,000,000 Connecticut State General Obligation Bonds, Series
D,
6.250%, 11/15/2009.................................. 11,038,900
10,000,000 Connecticut State Special Tax Obligation Revenue
Refunding Bonds, Transportation Infrastructure,
Series A,
5.125%, 09/01/2005.................................. 10,408,800
10,000,000 Fairfax County, Virginia, Refunding General
Obligation Bonds, Series C,
5.250%, 05/01/2008.................................. 10,392,400
10,000,000 Florida State Board of Education Refunding General
Obligation Bonds, Series B,
5.125%, 06/01/2008.................................. 10,277,800
10,000,000 Georgia State General Obligation Bonds, Series C,
6.500%, 07/01/2004.................................. 11,245,500
10,000,000 Hawaii State General Obligation Bonds, Series CJ,
5.900%, 01/01/2006.................................. 10,863,800
10,000,000 Lower Colorado River Authority of Texas, Refunding
Revenue Bonds, 6th Series,
5.000%, 01/01/2009.................................. 10,175,900
10,000,000 Maryland State & Local Facilities, Public
Improvements Correctional Facilities, 3rd Series,
5.700%, 10/15/2006.................................. 10,778,700
10,000,000 Massachusetts State Public Improvements, General
Obligation Bonds, Series C, (MBIA),
5.625%, 08/01/2011.................................. 10,511,500
10,000,000 New Jersey State Refunding General Obligation Bonds,
Series D,
5.625%, 02/15/2005.................................. 10,734,700
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$10,000,000 New Jersey State, Transportation Trust Fund Revenue
Bonds, Transportation System, Series A, (AMBAC),
5.250%, 06/15/2008................................. $ 10,408,200
10,000,000 New York City, New York, Municipal Assistance
Corp.,
Series G,
6.000%, 07/01/2006................................. 11,013,700
10,000,000 Ocean County, New Jersey, Utilities Authority
Wastewater Revenue Bonds,
5.000%, 01/01/2009................................. 10,259,100
10,000,000 Ohio State Public Facilities Commission Revenue
Bonds, Series II-B, (MBIA),
5.000%, 11/01/2007................................. 10,280,800
10,000,000 Texas State Refunding Bonds, Series A,
5.800%, 10/01/2004................................. 10,829,600
10,000,000 Wisconsin State Refunding General Obligation Bonds,
Series 3,
4.875%, 11/01/2005................................. 10,268,600
------------
212,551,400
------------
TAX-EXEMPT SECURITIES -- ESCROWED IN
U.S. GOVERNMENTS -- 4.46%
10,000,000 Fairfax County, Virginia, Industrial Development
Authority Revenue Bonds, Fairfax Hospital System,
6.801%, 08/29/2023
(Prerefunded 08/28/2001)........................... 11,117,100
------------
TAX-EXEMPT SECURITIES -- BACKED BY
LETTERS OF CREDIT -- 8.02%
RABOBANK NEDERLAND
------------------
10,000,000 Indiana Health Facilities Financing Authority
Revenue Bonds, St. Anthony's Medical Center
Project,
4.100%, 12/01/2014+................................ 10,000,000
TORONTO DOMINION BANK, LTD.
---------------------------
10,000,000 Wisconsin State Health Facilities Authority Revenue
Bonds, Wheaton Franciscan Services,
3.950%, 08/15/2016+................................ 10,000,000
------------
20,000,000
------------
</TABLE>
See Notes to Financial Statements
13
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
INTERMEDIATE-TERM TAX-EXEMPT FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<C> <S> <C>
OTHER INVESTMENTS -- 1.24%
3,079,900 Dreyfus Tax-Exempt Cash Management Fund.............. $ 3,079,900
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $234,846,564*)...................................... 98.95% $246,748,400
OTHER ASSETS & LIABILITIES (NET).......................... 1.05 2,625,967
------ ------------
NET ASSETS................................................ 100.00% $249,374,367
====== ============
</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, 1997, approximately, 12% 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, 1997, approximately, 13% of the net assets are invested in
Connecticut 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
14
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NEW YORK INTERMEDIATE-TERM TAX-EXEMPT FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 98.40%
$5,000,000 Connecticut State, General Obligation Bonds, Series
C,
5.500%, 08/01/2005.................................. $ 5,330,200
3,000,000 Hempstead, New York, General Obligation Bonds,
(AMBAC),
5.000%, 02/15/2010.................................. 3,026,430
3,825,000 Metropolitan Transportation Authority of New York,
Commuter Facilities Revenue Bonds, Series A, (MBIA),
7.000%, 07/01/2006.................................. 4,485,998
5,000,000 Metropolitan Transportation Authority of New York,
Dedicated Tax Fund Revenue Bonds, Series A, (MBIA),
5.300%, 04/01/2010.................................. 5,160,950
5,000,000 Monroe County, New York, Public Improvement
Refunding General Obligation Bonds, Series A,
5.500%, 03/01/2006.................................. 5,365,100
4,130,000 Municipal Assistance Corp., City of New York, Series
E,
6.000%, 07/01/2005.................................. 4,537,011
3,900,000 Nassau County, New York, Combined Sewer Districts
Refunding General Obligation Bonds, Series G,
(MBIA),
5.100%, 01/15/2003.................................. 4,025,502
3,000,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer System Revenue Bonds,
Series B, (AMBAC),
5.125%, 06/15/2004.................................. 3,115,260
1,000,000 New York City, New York, Trust for Cultural
Resources, Museum of Modern Art Revenue Bonds,
Series 1, (AMBAC),
5.000%, 01/01/2000.................................. 1,021,930
5,000,000 New York State Dormitory Authority, City University
System Revenue Bonds, Series F,
5.375%, 07/01/2007.................................. 5,307,550
5,000,000 New York State Dormitory Authority, Cornell
University Revenue Bonds,
5.125%, 07/01/2006.................................. 5,251,400
7,500,000 New York State Environmental Facilities Corp.,
Pollution Control Revenue Bonds, State Water
Revolving Fund, Series A,
7.250%, 06/15/2010.................................. 8,381,100
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$7,355,000 New York State Environmental Facilities Corp.,
Pollution Control Revenue Bonds, State Water
Revolving Fund, Series E, (MBIA),
5.500%, 06/15/2007.................................. $ 7,856,170
2,500,000 New York State Housing Finance Agency Special
Obligation Bonds, New York City Health Facilities,
Series A,
6.900%, 05/01/2003.................................. 2,824,900
4,000,000 New York State Local Government Assistance Corp.
Revenue Bonds, Series A,
5.400%, 04/01/2005.................................. 4,224,480
5,000,000 New York State Power Authority & General Purpose
Revenue Bonds, Series CC,
4.800%, 01/01/2005.................................. 5,100,900
4,000,000 New York State, Refunding General Obligation Bonds,
Series B, (AMBAC),
5.500%, 08/15/2006.................................. 4,274,720
4,000,000 New York State Thruway Authority General Revenue
Bonds, Series C, (FGIC),
5.400%, 01/01/2005.................................. 4,230,520
4,450,000 New York State Thruway Authority Highway & Bridge
Revenue Bonds, Series B, (MBIA),
5.750%, 04/01/2006.................................. 4,836,126
2,165,000 Orange County, New York, Refunding General
Obligation Bonds,
5.500%, 11/15/2006.................................. 2,332,160
4,725,000 Port Authority of New York & New Jersey, Revenue
Bonds, Cons-103 Series, (MBIA),
5.125%, 12/15/2009.................................. 4,857,064
5,000,000 Puerto Rico Commonwealth General Obligation Bonds,
Series B, (AMBAC),
5.500%, 07/01/2003.................................. 5,328,800
4,000,000 Puerto Rico Telephone Authority Revenue Bonds,
(MBIA),
5.250%, 01/01/2005.................................. 4,197,680
5,000,000 Puerto Rico Telephone Authority Revenue Bonds,
Reserve 1, (AMBAC),
5.050%, 01/01/2004.................................. 5,186,700
5,000,000 Triborough Bridge & Tunnel Authority, New York,
Revenue and General Purpose Bonds, Series A,
5.000%, 01/01/2008.................................. 5,145,200
------------
115,403,851
------------
</TABLE>
See Notes to Financial Statements
15
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NEW YORK INTERMEDIATE-TERM TAX-EXEMPT FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- ESCROWED IN U.S. GOVERNMENTS -- 2.42%
$2,500,000 New York City, New York,
Municipal Water Finance
Authority, Water & Sewer System Revenue Bonds,
Series C,
7.750%, 06/15/2020
(Prerefunded 06/15/2001)............................ $ 2,839,300
-------------
TAX-EXEMPT SECURITIES -- BACKED BY LETTERS OF CREDIT -- 3.41%
MORGAN GUARANTY TRUST
---------------------
4,000,000 New York City, New York,
General Obligation
Bonds, Subseries E5,
3.800%, 08/01/2016+................................. 4,000,000
-------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
---------
<C> <S> <C>
OTHER INVESTMENTS -- 1.38%
1,614,500 Shearson New York
Tax-Exempt Money Fund................................. 1,614,500
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $119,295,415*)...................................... 105.61% $123,857,651
OTHER ASSETS &
LIABILITIES (NET)......................................... (5.61) (6,580,855)
------ ------------
NET ASSETS................................................ 100.00% $117,276,796
====== ============
</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, 1997, approximately, 6% 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, 1997, approximately, 87% 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
16
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
LONG-TERM TAX-EXEMPT FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 84.70%
$5,000,000 Bartow County, Georgia, Development Authority
Pollution Control Revenue
Bonds, Georgia Power
Company Bowen, Series 1,
4.000%, 06/01/2023+................................. $ 5,000,000
5,000,000 California State Department
of Water Resources Central Valley Project Revenue
Bonds, Series Q, (MBIA),
5.375%, 12/01/2027.................................. 4,970,000
5,000,000 Clark County, Nevada, School District Building &
Renovation General Obligation Bonds,
Series B, (FGIC),
5.250%, 06/15/2017.................................. 4,981,350
5,000,000 Cook County, Illinois, General Obligation Bonds,
Series B, (MBIA),
5.375%, 11/15/2018.................................. 5,006,200
5,000,000 Dade County, Florida, Water & Sewer Systems Revenue
Bonds, (FGIC),
5.250%, 10/01/2026.................................. 4,897,900
5,000,000 East Bay California Municipal Utility Distribution
Water
System Revenue Bonds, (FGIC),
5.000%, 06/01/2026.................................. 4,737,500
5,000,000 Florida State Board of Education Capital Outlay,
Series A,
5.000%, 06/01/2027.................................. 4,740,800
5,000,000 Illinois State Sales Tax Refunding Revenue Bonds,
Series Q,
5.500%, 06/15/2020.................................. 5,000,000
5,000,000 Massachusetts State Water Resource Authority, Series
B, (MBIA),
5.000%, 12/01/2025.................................. 4,711,800
5,000,000 Metropolitan Pier & Exposition Authority, Illinois,
State Tax Refunding Revenue Bonds, McCormick Place
Exposition Project, Series A, (AMBAC),
5.250%, 06/15/2027.................................. 4,860,400
5,000,000 Michigan State Hospital Finance Authority Refunding
Revenue Bonds, Henry Ford Health System, Series A,
5.250%, 11/15/2025.................................. 4,920,250
5,000,000 New Jersey State Transportation Fund Revenue Bonds,
Series B,
5.250%, 06/15/2016.................................. 5,021,300
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$5,000,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer System
Revenue Bonds, Series B, (MBIA),
5.500%, 06/15/2027................................. $ 5,019,650
5,000,000 New York State Dormitory Authority, Montefiore
Medical Center Refunding
Revenue Bonds, FHA Insured,
(AMBAC),
5.250%, 02/01/2015................................. 5,033,600
5,000,000 New York State Local Assistance Corp. Refunding
Revenue Bonds, Series B,
5.500%, 04/01/2021................................. 5,015,200
5,000,000 New York State Medical Care Facilities Finance
Agency Refunding Revenue Bonds, Presbyterian
Hospital,
Series A, (FHA),
5.375%, 02/15/2025................................. 4,978,350
5,000,000 Port Authority of New York
& New Jersey, Revenue Bonds, Series 104, (AMBAC),
5.200%, 07/15/2021................................. 4,952,450
5,000,000 Port Seattle, Washington, Revenue Bonds, Series A,
(FGIC),
5.500%, 10/01/2022................................. 5,041,050
5,000,000 San Antonio, Texas, Electric
& Gas Refunding Revenue Bonds,
5.000%, 02/01/2014................................. 4,901,250
5,000,000 Triborough Bridge & Tunnel Authority, New York,
General Purpose Revenue Bonds, Series B,
5.200%, 01/01/2022................................. 4,891,700
5,000,000 Valdez, Alaska, Marine Terminal Refunding Revenue
Bonds,
BP Pipeline, Inc. Project,
Series B,
5.500%, 10/01/2028................................. 4,919,600
5,000,000 Wisconsin State Transportation Refunding Revenue
Bonds, Series B,
5.500%, 07/01/2022................................. 5,022,350
------------
108,622,700
------------
TAX-EXEMPT SECURITIES -- BACKED BY LETTERS OF CREDIT -- 16.92%
ABN-AMRO BANK, NV
-----------------
5,000,000 Illinois Health Facilities
Authority Revenue Bonds,
Palos Community Hospital,
Series B,
4.100%, 12/01/2015+................................ 5,000,000
</TABLE>
See Notes to Financial Statements
17
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
LONG-TERM TAX-EXEMPT FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- BACKED BY LETTERS OF CREDIT --
(CONTINUED)
MORGAN GUARANTY TRUST
---------------------
$2,700,000 New York, New York, General Obligation Bonds,
Subseries E2, 3.800%, 08/01/2021+.................. $ 2,700,000
NORTHERN TRUST COMPANY
----------------------
4,000,000 Illinois Health Facilities
Authority Revenue Bonds,
Healthcorp Affiliates, Series A,
3.850%, 11/01/2015+................................ 4,000,000
RABOBANK NEDERLAND
------------------
5,000,000 Indiana Health Facilities
Financing Authority Revenue Bonds, St. Anthony's
Medical Center Project,
4.100%, 12/01/2014+................................ 5,000,000
TORONTO DOMINION BANK, LTD.
---------------------------
5,000,000 Wisconsin State Health Facilities Authority Revenue
Bonds, Wheaton Franciscan Services, 3.950%,
08/15/2016+........................................ 5,000,000
------------
21,700,000
------------
<CAPTION>
SHARES
------
<C> <S> <C>
OTHER INVESTMENTS -- 1.21%
1,560,500 Dreyfus Tax-Exempt Cash Management Fund............ 1,560,500
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $125,417,817*)...................................... 102.83% $131,883,200
OTHER ASSETS &
LIABILITIES (NET)......................................... (2.83) (3,635,585)
------ ------------
NET ASSETS................................................ 100.00% $128,247,615
====== ============
</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.
FHA --Federal Housing Authority.
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, 1997, approximately, 17% 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, 1997, approximately, 25% 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
18
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 82.81%
$510,000 Alameda County, California, Tax & Revenue
Anticipation Notes, General Obligation Bonds,
4.250%, 07/01/1998................................. $ 511,795
350,000 Alameda County, California, Transportation
Authority, Sales Tax Revenue Bonds, (AMBAC),
4.000%, 11/01/1998................................. 351,396
105,000 Alameda County, California, Transportation
Authority, Sales Tax Revenue Bonds, (FGIC), 5.200%,
05/01/1999......................................... 107,385
125,000 Anaheim, California, Electric Refunding Revenue
Bonds, (AMBAC),
4.750%, 10/01/2002................................. 128,300
200,000 Antelope Valley, East Kern, California, Water
Agency Refunding General Obligation Bonds, (AMBAC),
4.500%, 08/01/2001................................. 203,372
200,000 Bakersfield, California, City School District,
Refunding General Obligation Bonds, (MBIA),
5.000%, 08/01/2005................................. 208,272
135,000 California Educational Facilities Authority, Santa
Clara University Refunding Revenue Bonds, (MBIA),
4.900%, 09/01/2006................................. 140,335
150,000 California Educational Facilities Authority,
Stanford University Refunding Revenue Bonds, Series
J,
5.900%, 11/01/2003................................. 160,347
150,000 California Educational Facilities Authority, St.
Mary's College Refunding Revenue Bonds,
4.800%, 10/01/2002................................. 154,023
225,000 California Health Facilities Financing Authority
Revenue Bonds, Cedars-Sinai Medical Center, Series
A, (MBIA),
4.250%, 08/01/2003................................. 224,874
200,000 California Industrial Urban Development Agency,
Refunding Tax Allocation Bonds, (MBIA),
4.300%, 05/01/2002................................. 201,900
250,000 California State Department of Water Resources,
Central Valley Project Refunding Revenue Bonds,
Series L,
8.000%, 12/01/2001................................. 287,927
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$375,000 California State Department of Water Resources
Central Valley Project Refunding Revenue Bonds,
Series S,
4.250%, 12/01/1999.................................. $ 378,075
150,000 California State, General Obligation Bonds, (AMBAC),
6.250%, 06/01/2004.................................. 166,701
300,000 California State, General Obligation Bonds,
6.000%, 09/01/2001.................................. 319,761
230,000 California State, General Obligation Bonds,
6.700%, 02/01/2004.................................. 260,178
250,000 California State Public Works Board, Lease Refunding
Revenue Bonds, Department of Corrections, Series D,
(MBIA),
4.850%, 09/01/2008.................................. 252,952
300,000 California State Public Works Board, Lease Refunding
Revenue Bonds, Secretary of State, Series A,
6.750%, 12/01/2012.................................. 340,635
300,000 California State University, Institutional Lease
Refunding Revenue Bonds, (AMBAC),
5.500%, 06/01/2003.................................. 320,880
250,000 Central Coast Water Authority, California Refunding
Revenue Bonds, State Water Project Regional
Facilities, Series A, (AMBAC),
4.375%, 10/01/2001.................................. 253,668
315,000 Central Coast Water Authority, California Refunding
Revenue Bonds, State Water Project Regional
Facilities, Series A, (AMBAC),
6.000%, 10/01/2005.................................. 350,712
545,000 Chino Basin California Regional Financing Authority
Revenue Bonds, Municipal Water District Sewer System
Project, (AMBAC),
7.000%, 08/01/2005.................................. 639,203
350,000 Contra Costa, California, Certificates of
Participation, Capital Projects Program, (AMBAC),
4.625%, 02/01/2007.................................. 351,561
550,000 Contra Costa, California, Transportation Authority
Sales Tax Revenue Bonds, Series A, (FGIC),
6.000%, 03/01/2007.................................. 610,076
</TABLE>
See Notes to Financial Statements
19
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$250,000 Escondido, California, School District, Series A,
(FGIC),
5.000%, 09/01/2008.................................. $ 257,200
400,000 Fairfield, California, Water Refunding Revenue
Bonds, (AMBAC),
4.700%, 04/01/2005.................................. 409,652
155,000 Fresno, California, Sewer Revenue Bonds, Series A-1,
(AMBAC),
4.800%, 09/01/2006.................................. 159,989
200,000 Los Angeles, California, Convention & Exhibition
Center Authority, Refunding Certificates of
Participation, (AMBAC),
6.600%, 08/15/1999.................................. 209,808
250,000 Los Angeles, California, Department of Water &
Power, Electrical Plant Refunding Revenue Bonds,
(AMBAC),
4.600%, 08/15/2006.................................. 253,953
305,000 Los Angeles, California, Harbor Department Refunding
Revenue Bonds, Series C,
4.875%, 11/01/2002.................................. 316,239
250,000 Los Angeles, California, Municipal Improvement
Corporation, Equipment Real Estate Property,
Certificates of Participation, (AMBAC),
4.500%, 12/01/2001.................................. 254,262
250,000 Los Angeles, California, Municipal Improvement
Corporation, Sanitation Equipment Charge Revenue
Bonds, Series A, (FSA),
5.000%, 02/01/2001.................................. 257,642
150,000 Los Angeles, California, Municipal Improvement
Corporation, Sanitation Equipment Charge Revenue
Bonds, Series A, (FSA),
4.875%, 02/01/2006.................................. 154,233
500,000 Los Angeles, California, School District, Series A,
(FGIC),
4.400%, 07/01/2003.................................. 502,240
225,000 Los Angeles, California, State Building Authority
Lease Refunding Revenue Bonds, California Department
of General Services, Series A,
4.400%, 05/01/1999.................................. 226,672
400,000 Los Angeles, California, State Building Authority
Lease Refunding Revenue Bonds, California Department
of General Services, Series A,
5.600%, 05/01/2004.................................. 427,172
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$250,000 Los Angeles, California, Wastewater Systems Revenue
Bonds, Series A, (FGIC),
6.000%, 02/01/2003.................................. $ 271,173
200,000 Los Angeles County, California, Public Works
Financing Authority, Lease Refunding Revenue Bonds,
Series A, (MBIA),
6.000%, 09/01/2003.................................. 218,578
230,000 Los Angeles County, California, SCHS Regionalized
Business Services Certificates of Participation,
Local Educational Agencies, Series B, (MBIA),
4.400%, 07/01/2003.................................. 231,615
100,000 Metropolitan Water District of Southern California,
Refunding General Obligation Bonds,
Series A1,
5.000%, 03/01/2002.................................. 103,929
150,000 Metropolitan Water District of Southern California,
Refunding General Obligation Bonds,
Series A3,
4.700%, 03/01/2000.................................. 153,054
400,000 Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series A,
7.000%, 07/01/2002.................................. 448,496
200,000 Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B, (MBIA),
5.250%, 07/01/2007.................................. 212,370
200,000 Modesto, California, Irrigation District Financing
Authority, Refunding Revenue Bonds, Series A,
(MBIA),
4.850%, 10/01/2001.................................. 206,156
250,000 Modesto, California, Irrigation District Financing
Authority, Refunding Revenue Bonds, Series A,
(MBIA),
5.450%, 10/01/2007.................................. 267,713
350,000 MSR Public Power Agency, California, San Juan
Project Refunding Revenue Bonds, Series F, (AMBAC),
5.650%, 07/01/2003.................................. 375,301
250,000 Northern California Power Agency, Public Power
Refunding Revenue Bonds, Geothermal Project, Series
A, (AMBAC),
5.500%, 07/01/2005.................................. 267,710
</TABLE>
See Notes to Financial Statements
20
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$250,000 Northern California Power Agency, Public Power
Refunding Revenue Bonds, Geothermal Project, Series
A, (AMBAC),
5.600%, 07/01/2006.................................. $ 270,448
250,000 Novato, California, Refunding General Obligation
Bonds,
Series A, (MBIA),
6.250%, 08/01/2007.................................. 284,233
175,000 Orange County, California, Local Transportation
Authority Sales Tax Revenue Bonds, 1st Series,
5.600%, 02/15/2002.................................. 184,977
300,000 Orange County, California, Local Transportation
Authority Sales Tax Revenue Bond, 2nd Series,
(FGIC),
4.700%, 02/15/2005.................................. 307,311
100,000 Orange County, California, Municipal Water District,
Water Facilities Corporation, Refunding Certificates
of Participation, (MBIA),
4.800%, 07/01/2003.................................. 102,980
255,000 Sacramento, California, City Financing Authority
Lease Refunding Revenue Bonds, Series A, (AMBAC),
5.050%, 11/01/2006.................................. 266,128
250,000 Sacramento, California, Municipal Utilities District
Electric Refunding Revenue Bonds, Series Z, (FGIC),
6.000%, 07/01/2001.................................. 266,617
200,000 Sacramento County, California, Public Facilities
Project, Refunding Certificates of Participation,
(MBIA),
4.700%, 02/01/2003.................................. 204,630
250,000 Sacramento County, California, Public Facilities
Project, Refunding Certificates of Participation,
(MBIA),
4.875%, 02/01/2005.................................. 258,710
400,000 Sacramento County, California, Sanitation District
Financing Authority Revenue Bonds,
5.500%, 12/01/2005.................................. 428,760
255,000 San Bernardino County, California, Transportation
Authority Sales Tax Refunding Revenue Bonds, Series
A, (MBIA),
4.625%, 03/01/2005.................................. 259,804
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$175,000 San Diego, California, Open Space Park Facilities
District, Refunding General Obligation Revenue
Bonds,
5.500%, 01/01/2004................................. $ 187,782
300,000 San Diego, California, Public Facilities Financing
Authority, Sewer Revenue Bonds, Series B, (FGIC),
5.000%, 05/15/2008................................. 309,726
250,000 San Diego, California, Public Safety Communications
Project, General Obligation Bonds,
6.500%, 07/15/2008................................. 287,498
215,000 San Diego, California, Regional Transportation
Communication, Sales Tax Revenue Bonds, 2nd Series,
Series A, (FGIC),
6.250%, 04/01/2003................................. 236,455
200,000 San Diego County, California, Regional
Transportation Communication, Sales Tax Refunding
Revenue Bonds, 2nd Series, Series A, (FGIC),
5.500%, 04/01/2004................................. 214,426
150,000 San Diego County, California, Regional
Transportation Communication, Sales Tax Refunding
Revenue Bonds, 2nd Series, Series A, (FGIC),
5.200%, 04/01/2005................................. 158,481
150,000 San Diego County, California, Regional
Transportation Communication, Sales Tax Refunding
Revenue Bonds, 2nd Series, Series A, (FGIC),
5.250%, 04/01/2006................................. 158,853
50,000 San Diego County, California, Water Authority,
Water Revenue Certificates of Participation, Series
A,
6.250%, 05/01/2004................................. 54,047
50,000 San Francisco, California, City & County Airport
Communication, International Airport Refunding
Revenue Bonds, 2nd Series,
Issue 2, (MBIA),
6.350%, 05/01/2000................................. 52,908
325,000 San Francisco, California, City & County Public
Utilities Communication, Water Refunding Revenue
Bonds, Series A,
6.500%, 11/01/2004................................. 366,993
</TABLE>
See Notes to Financial Statements
21
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$225,000 San Francisco, California, City & County School
District Facilities Improvements Project, Series C,
(FGIC),
6.000%, 06/15/1999................................. $ 232,832
200,000 San Francisco, California, State Building Authority
Lease Revenue Bonds, San Francisco Civic Center
Complex, Series A, (AMBAC),
4.125%, 12/01/2000................................. 201,232
100,000 San Jose, California, Airport Refunding Revenue
Bonds, (FGIC),
5.500%, 03/01/2002................................. 105,562
200,000 San Jose, California, Redevelopment Agency, Tax
Allocation Bonds, Merged Area Redevelopment
Project, (MBIA),
4.750%, 08/01/2003................................. 206,466
325,000 San Jose, California, Redevelopment Agency, Tax
Allocation Bonds, Merged Area Redevelopment
Project, (MBIA),
5.375%, 08/01/2004................................. 347,175
250,000 San Jose, California, Santa Clara County School
District, Series A, (FGIC),
4.400%, 08/01/2005................................. 250,645
300,000 San Mateo County, California, JT Powers Authority
Lease Revenue Bonds, San Mateo County Health Care
Center, Series A, (FSA),
5.600%, 07/15/2004................................. 322,374
500,000 San Mateo County, California, Transportation
Authority,
Series A, (MBIA),
4.200%, 06/01/2004................................. 499,400
175,000 San Mateo County, California, Transportation
District Sales
Tax Revenue Bonds, Series A, (MBIA),
5.000%, 06/01/1999................................. 178,470
150,000 Santa Barbara County, California, Local
Transportation Authority, Sales Tax Revenue Bonds,
(FGIC),
4.900%, 04/01/2006................................. 155,703
300,000 Santa Clara County, California, Certificates of
Participation, Technology Projects, Series A,
5.000%, 05/15/2000................................. 305,817
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$300,000 Southern California Public Power Authority,
Refunding Revenue Bonds, Palo Verde Project,
Series A, (AMBAC),
4.000%, 07/01/1998................................. $ 300,960
200,000 Southern California Public Power Authority,
Refunding Revenue Bonds, Palo Verde Project,
Series A, (AMBAC),
5.500%, 07/01/2004................................. 214,406
200,000 Tri City, California, Hospital District Refunding
Revenue Bonds, Series B, (MBIA),
5.500%, 02/15/2000................................. 207,136
300,000 University of California, Refunding Revenue Bonds,
Multiple Purpose Projects,
Series A, (MBIA),
6.100%, 09/01/2000................................. 317,100
150,000 University of California, Refunding Revenue Bonds,
Series C, (AMBAC),
4.600%, 09/01/2005................................. 152,384
250,000 West & Central Basin Financing Authority,
California Refunding Revenue Bonds, (AMBAC),
5.500%, 08/01/2001................................. 263,108
------------
22,232,022
------------
TAX-EXEMPT SECURITIES -- ESCROWED IN U.S. GOVERNMENTS -- 13.56%
350,000 Alameda County, California, Correctional Facility
Improvements, Certificates of Participation,
(MBIA),
7.250%, 06/01/2013 (Prerefunded 12/01/2000)........ 390,250
200,000 California Health Facilities Financing Authority
Revenue Bonds, (AMBAC),
7.625%, 10/01/2015 (Prerefunded 10/01/1998)........ 211,380
260,000 California State Public Works Board, Lease
Refunding Revenue Bonds, Various California State
University Projects, Series A,
6.625%, 10/01/2010 (Prerefunded 10/01/2002)........ 292,978
200,000 California State Public Works Board, Lease
Refunding Revenue Bonds, Various California State
University Projects, Series A,
6.400%, 12/01/2016 (Prerefunded 12/01/2002)........ 223,964
</TABLE>
See Notes to Financial Statements
22
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- ESCROWED IN U.S. GOVERNMENTS --
(CONTINUED)
$200,000 California State Public Works Board, Various
University of California Projects, Lease Revenue
Bonds, Series A, 6.600%, 12/01/2022 (Prerefunded
12/01/2002).......................................... $ 225,708
200,000 Concord, California, Redevelopment Agency, Tax
Allocation Refunding Bonds, Series 3, (MBIA),
8.000%, 07/01/2018 (Prerefunded 07/01/1998).......... 210,108
250,000 Cupertino, California, Certificates of Participation,
Open Space Acquisition Project,
7.125%, 04/01/2016 (Prerefunded 04/01/2001).......... 279,000
250,000 East Bay, California, Municipal Utilities District
Wastewater Treatment System Revenue Bonds, (AMBAC),
6.375%, 06/01/2021 (Prerefunded 12/01/2001).......... 276,158
330,000 Los Angeles, California, Community Redevelopment
Agency, Refunding Tax Allocation, North Hollywood,
Series C, (MBIA),
7.000%, 07/01/2005 (Prerefunded 07/01/1999).......... 353,546
300,000 Los Angeles, California, Convention & Exhibition
Center Authority Certificates of Participation,
Series A,
6.500%, 08/15/2021 (Prerefunded 08/15/1999).......... 314,175
125,000 Los Angeles, California, Harbor Department Revenue
Bonds, Series A,
6.500%, 08/01/2025 (Prerefunded 08/01/02)............ 139,793
175,000 Los Angeles County, California, Transportation
Communications Sales Tax Revenue Bonds,
Series A,
6.750%, 07/01/2019 (Prerefunded 07/01/2002).......... 197,309
225,000 Los Angeles, California, Wastewater Systems Revenue
Bonds, Series D, (MBIA),
6.700%, 12/01/2021 (Prerefunded 12/01/2000).......... 247,223
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- ESCROWED IN U.S. GOVERNMENTS --
(CONTINUED)
$100,000 Northern California Transmission Refunding Revenue
Bonds, Ore Transportation Project, Series A, (MBIA),
7.000%, 05/01/2024 (Prerefunded 05/01/2000)......... $ 108,728
150,000 Paramount, California, Redevelopment Agency
Refunding Tax Allocation Bonds,
7.350%, 08/01/2021 (Prerefunded 08/01/2001)......... 169,927
-----------
3,640,247
-----------
<CAPTION>
SHARES
-----------
<C> <S> <C>
OTHER INVESTMENTS -- 2.77%
374,840 Federated California Money Fund..................... 374,840
367,916 Provident California Money Fund..................... 367,916
-----------
742,756
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $26,148,656*)......................................... 99.14% $26,615,025
OTHER ASSETS &
LIABILITIES (NET)........................................... 0.86 231,595
------ -----------
NET ASSETS.................................................. 100.00% $26,846,620
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
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, 1997, approximately, 14% of the net assets are invested in
municipal securities that have 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, 1997, approximately, 94% of the net assets are invested in
California 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
23
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Excelsior Tax-Exempt Funds, Inc. ("Excelsior Tax-Exempt Fund") was
incorporated under the laws of the State of Maryland on August 8, 1984 and is
registered under the Investment Company Act of 1940, as amended, as an open-
end management investment company.
Excelsior Tax-Exempt Fund currently offers shares in six managed investment
portfolios, each having its own investment objectives and policies. The
following is a summary of significant accounting policies for Tax-Exempt Money
Fund, Short-Term Tax-Exempt Securities Fund, Intermediate-Term Tax-Exempt
Fund, New York Intermediate-Term Tax-Exempt Fund, Long-Term Tax-Exempt Fund
and California Tax- Exempt Income Fund (the "Portfolios"). Such policies are
in conformity with generally accepted accounting principles and are
consistently followed by Excelsior Tax-Exempt Fund 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. The financial statements for Excelsior Funds, Inc.
("Excelsior Fund") are presented separately.
With regard to Tax-Exempt Money Fund, it is Excelsior Tax-Exempt Fund's
policy, to the extent possible, to maintain a continuous net asset value per
share of $1.00. The Portfolio has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so.
However, there can be no assurance that the net asset value per share of the
Portfolio will not vary.
(A) PORTFOLIO VALUATION:
Tax-Exempt Money Fund: Securities are valued at amortized cost, which has
been determined by the Fund's Board of Directors to represent the fair
value of the Fund's 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.
Short-Term Tax-Exempt Securities Fund, Intermediate-Term Tax-Exempt Fund,
New York Intermediate-Term Tax-Exempt Fund, Long-Term Tax-Exempt Fund and
California Tax-Exempt Income Fund: Securities are valued each business day
as of the close of the New York Stock Exchange after consultation with an
independent pricing service (the "Service"). When in the judgement of the
Service, quoted bid prices for securities are readily available and are
representative of the bid side of the market, these investments are valued
at the mean between the quoted bid prices (as obtained by the Service from
dealers in such securities) and ask prices (as calculated by the Service
based upon its evaluation of the market for such securities). Short-term
debt instruments with remaining maturities of 60 days or less, and variable
rate demand notes and securities with put options exercisable within one
year, are valued at amortized cost, which approximates market value.
Securities and other assets for which market quotations are not readily
available are valued at fair value pursuant to guidelines adopted by
Excelsior Tax-Exempt Fund's Board of Directors.
The net asset value of the shares in Short-Term Tax-Exempt Securities
Fund, Intermediate- Term Tax-Exempt Fund, New York Intermediate-Term Tax-
Exempt Fund, Long-Term Tax-Exempt
24
<PAGE>
Fund and California Tax-Exempt Income Fund will fluctuate as the market
values of their portfolio securities change in response to changing market
rates of interest and other factors.
(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) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Tax-Exempt Money Fund: 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.
Short-Term Tax-Exempt Securities Fund, Intermediate-Term Tax-Exempt Fund,
New York Intermediate-Term Tax-Exempt Fund, Long-Term Tax-Exempt Fund and
California Tax-Exempt Income Fund: Dividends from net investment income are
declared daily and paid monthly. Net realized capital gains, unless offset
by any available capital loss carryforward, are distributed to shareholders
at least annually. Dividends and distributions are recorded on the ex-
dividend date.
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 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.
(D) FEDERAL TAXES:
It is the policy of Excelsior Tax-Exempt Fund 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, 1997, the following Portfolios had approximate capital loss
carryforwards for Federal tax purposes available to offset future net
capital gains as follows:
<TABLE>
<CAPTION>
EXPIRATION DATE MARCH 31,
---------------------------------------------
2001 2002 2003 2005 TOTAL
------- ------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C>
Tax-Exempt Money Fund........ $18,000 $31,000 $ -- $51,000 $ 100,000
Short-Term Tax-Exempt
Securities Fund............. -- -- 637,000 -- 637,000
Intermediate-Term Tax-Exempt
Fund........................ -- -- 4,843,000 -- 4,843,000
New York Intermediate-Term
Tax-Exempt Fund............. -- -- 1,450,000 -- 1,450,000
</TABLE>
25
<PAGE>
At September 30, 1997, aggregate gross unrealized appreciation for all
securities for which there was an excess of value over tax cost and
aggregate gross unrealized depreciation for all securities in which there
was an excess of tax cost over value were as follows:
<TABLE>
<CAPTION>
NET
TAX BASIS TAX BASIS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ -------------- --------------
<S> <C> <C> <C>
Tax-Exempt Money Fund........... $ -- $ -- $ --
Short-Term Tax-Exempt Securities
Fund........................... 406,604 -- 406,604
Intermediate-Term Tax-Exempt
Fund........................... 11,964,052 (62,216) 11,901,836
New York Intermediate-Term Tax-
Exempt Fund.................... 4,562,236 -- 4,562,236
Long-Term Tax-Exempt Fund....... 6,465,383 -- 6,465,383
California Tax-Exempt Income
Fund........................... 466,527 (158) 466,369
</TABLE>
(E) EXPENSE ALLOCATION:
Expenses directly attributable to a Portfolio are charged to that
Portfolio. Other expenses are allocated to the respective Portfolios based
on average net assets.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS
United States Trust Company of New York ("U.S. Trust NY") and U.S. Trust
Company of Connecticut ("U.S. Trust CT" and collectively with U.S. Trust NY,
"U.S. Trust") serve as the investment advisers 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 Tax-Exempt Money Fund, .30%
of the average daily net assets of Short-Term Tax-Exempt Securities Fund, .35%
of the average daily net assets of Intermediate-Term Tax-Exempt Fund, and .50%
of the average daily net assets of New York Intermediate-Term Tax-Exempt Fund,
Long-Term Tax-Exempt Fund and California Tax-Exempt Income Fund. Prior to May
15, 1997, U.S. Trust NY served as the Portfolios' investment adviser pursuant
to investment advisory agreements substantially similar to those currently in
effect for the Portfolios. U.S. Trust NY and U.S. Trust CT are wholly-owned
subsidiaries of U.S. Trust Corporation, a registered bank holding company.
U.S. Trust CT, Chase Global Funds Services Company ("CGFSC"), a subsidiary
of The Chase Manhattan Bank, and Federated Administrative Services ("FAS")
(collectively, the "Administrators") provide administrative services to
Excelsior Tax-Exempt Fund. 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
Tax-Exempt Fund, Excelsior 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.
Prior to May 15, 1997, U.S. Trust NY, CGFSC and FAS served as the Portfolios'
administrators pursuant to administration agreements substantially similar to
those currently in effect for the Portfolios. For the six months ended
September 30, 1997, Administration fees charged by U.S. Trust CT were as
follows:
26
<PAGE>
<TABLE>
<S> <C>
Tax-Exempt Money Fund.................................................. $138,055
Short-Term Tax-Exempt Securities Fund.................................. 5,258
Intermediate-Term Tax-Exempt Fund...................................... 31,851
New York Intermediate-Term Tax-Exempt Fund............................. 14,509
Long-Term Tax-Exempt Fund.............................................. 15,049
California Tax-Exempt Income Fund...................................... 2,812
</TABLE>
From time to time, as they may deem appropriate in their sole discretion, or
pursuant to applicable state expense limitations, 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.
Until further notice to Excelsior Tax-Exempt Fund, U.S. Trust intends to
voluntarily waive fees and reimburse expenses to the extent necessary for
Short-Term Tax-Exempt Securities Fund to maintain an annual expense ratio of
not more than .60%. For the six months ended September 30, 1997, no fees were
waived or expenses reimbursed pursuant to this voluntary limitation. In
addition, U.S. Trust has voluntarily agreed to temporarily waive fees
necessary for the California Tax-Exempt Income Fund to maintain an annual
expense ratio of not more than .50%. For the six months ended September 30,
1997, U.S. Trust waived investment advisory fees totaling $39,820 for
California Tax-Exempt Income Fund.
Excelsior Tax-Exempt Fund has 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.
Until further notice to Excelsior Tax-Exempt Fund, 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 by such Portfolio. For the six months
ended September 30, 1997, 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>
Tax-Exempt Money Fund................................. $259,352 $--
Short-Term Tax-Exempt Securities Fund................. 10,393 100
Intermediate-Term Tax-Exempt Fund..................... 53,318 224
New York Intermediate-Term Tax-Exempt Fund............ 12,423 --
Long-Term Tax-Exempt Fund............................. 29,801 298
California Tax-Exempt Income Fund..................... 35,692 --
</TABLE>
Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary of
Federated Investors, serves as the sponsor and distributor of Excelsior Tax-
Exempt Fund. Shares of each Portfolio are sold without a sales charge on a
continuous basis by the Distributor.
27
<PAGE>
Each Director of Excelsior Tax-Exempt Fund 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. PURCHASES AND SALES OF SECURITIES
For the six months ended September 30, 1997, purchases and sales and
maturities of securities, excluding short-term investments, for the Portfolios
aggregated:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Short-Term Tax-Exempt Securities Fund.................. $ 9,316,510 $ 9,101,364
Intermediate-Term Tax-Exempt Fund...................... 50,806,200 49,753,000
New York Intermediate-Term Tax-Exempt Fund............. 34,863,003 14,372,320
Long-Term Tax-Exempt Fund.............................. 78,542,640 64,269,330
California Tax-Exempt Income Fund...................... 12,590,875 503,220
</TABLE>
4. COMMON STOCK:
Excelsior Tax-Exempt Fund currently has authorized capital of 14 billion
shares of Common Stock representing interests in one of six separate
investment portfolios. Authorized capital currently offered for each Portfolio
is as follows: 1,500 million shares of Tax-Exempt Money Fund and 500 million
shares each of Short-Term Tax-Exempt Securities Fund, Intermediate-Term Tax-
Exempt Fund, New York Intermediate-Term Tax-Exempt Fund, Long-Term Tax-Exempt
Fund, and California Tax-Exempt Income 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 and tax-exempt
earnings on the assets belonging to such Portfolio as are declared at the
discretion of Excelsior Tax-Exempt Fund's Board of Directors. Since Tax-Exempt
Money Fund has 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 amount shown below for
such transactions.
<TABLE>
<CAPTION>
TAX-EXEMPT MONEY FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/97 03/31/97
---------------- ---------------
<S> <C> <C>
Sold......................................... $ 1,940,184,748 $ 3,573,643,154
Issued as reinvestment of dividends.......... 937,049 1,323,711
Redeemed..................................... (1,894,669,203) (3,471,948,696)
--------------- ---------------
Net Increase................................. $ 46,452,594 $ 103,018,169
=============== ===============
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
SHORT-TERM TAX-EXEMPT SECURITIES FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/97 03/31/97
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 948,366 $ 6,690,962 2,617,630 $ 18,422,170
Issued as reinvestment of
dividends................ 9,291 65,665 15,976 112,475
Redeemed.................. (1,255,357) (8,866,040) (2,891,228) (20,348,424)
---------- ------------ ---------- ------------
Net Decrease.............. (297,700) $ (2,109,413) (257,622) $ (1,813,779)
========== ============ ========== ============
<CAPTION>
INTERMEDIATE-TERM TAX-EXEMPT FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/97 03/31/97
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 2,573,684 $ 23,916,776 5,916,061 $ 53,851,557
Issued as reinvestment of
dividends................ 35,805 332,714 69,565 635,343
Redeemed.................. (2,877,640) (26,675,037) (7,163,758) (65,269,781)
---------- ------------ ---------- ------------
Net Increase (Decrease)... (268,151) $ (2,425,547) (1,178,132) $(10,782,881)
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
NEW YORK INTERMEDIATE-TERM TAX-EXEMPT FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/97 03/31/97
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 3,125,490 $ 26,843,988 2,768,339 $ 23,489,127
Issued as reinvestment of
dividends................ 26,130 225,898 24,174 204,804
Redeemed.................. (1,792,732) (15,383,609) (2,104,494) (17,736,590)
---------- ------------ ---------- ------------
Net Increase.............. 1,358,888 $ 11,686,277 688,019 $ 5,957,341
========== ============ ========== ============
<CAPTION>
LONG-TERM TAX-EXEMPT FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/97 03/31/97
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 2,624,875 $ 25,922,111 4,928,889 $ 46,839,960
Issued as reinvestment of
dividends................ 23,513 231,517 56,726 542,894
Redeemed.................. (1,275,270) (12,429,289) (3,093,327) (29,594,558)
---------- ------------ ---------- ------------
Net Increase.............. 1,373,118 $ 13,724,339 1,892,288 $ 17,788,296
========== ============ ========== ============
</TABLE>
29
<PAGE>
<TABLE>
<CAPTION>
CALIFORNIA TAX-EXEMPT INCOME FUND
----------------------------------------------
SIX MONTHS ENDED
09/30/97 10/01/96* - 03/31/97
---------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sold.......................... 2,296,180 $16,129,715 2,037,537 $14,268,915
Issued as reinvestment of
dividends.................... 211 1,495 73 508
Redeemed...................... (437,698) (3,088,715) (132,710) (931,434)
--------- ----------- --------- -----------
Net Increase.................. 1,858,693 $13,042,495 1,904,900 $13,337,989
========= =========== ========= ===========
</TABLE>
- --------
* Commencement of operations.
5. ORGANIZATION COSTS:
Excelsior Tax-Exempt Fund has borne all costs in connection with the initial
organization of new portfolios, including the fees for registering and
qualifying its shares for distribution under Federal and state securities
regulations. All such costs are being amortized on the straight-line basis over
periods of five years from the dates on which each Portfolio commenced
operations.
30
