<PAGE>
[LOGO OFO EXCELSIOR TAX-EXEMPT FUNDS INC.]
TAX-EXEMPT FIXED INCOME PORTFOLIOS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1998
<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.................................... 10
Intermediate-Term Tax-Exempt Fund........................................ 12
New York Intermediate-Term Tax-Exempt Fund............................... 14
Long-Term Tax-Exempt Fund................................................ 16
California Tax-Exempt Income Fund........................................ 18
New York Tax-Exempt Money Fund........................................... 25
NOTES TO FINANCIAL STATEMENTS.............................................. 28
</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, U.S. TRUST COMPANY OF
CONNECTICUT, THEIR 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, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NEW YORK
SHORT-TERM INTERMEDIATE- INTERMEDIATE- CALIFORNIA NEW YORK
TAX-EXEMPT TAX-EXEMPT TERM TERM LONG-TERM TAX-EXEMPT TAX-EXEMPT
MONEY SECURITIES TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT INCOME MONEY
FUND FUND FUND FUND FUND FUND FUND
-------------- ----------- ------------- ------------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at cost-
see accompanying
portfolios........... $1,373,449,808 $38,569,980 $272,386,867 $139,203,188 $176,662,140 $51,131,141 $224,860,368
============== =========== ============ ============ ============ =========== ============
Investments, at value
(Note 1)............. $1,373,449,808 $39,174,979 $286,506,540 $144,916,827 $185,841,551 $52,402,976 $224,860,368
Cash.................. -- 9,653 22,103 72 -- 23,952 --
Interest receivable... 5,620,988 647,401 4,106,152 1,867,232 2,720,955 706,190 777,905
Receivable for fund
shares sold.......... -- -- 225,798 74,391 145,513 566,347 --
Receivable from
investments sold..... -- -- -- 8,586,276 5,228,274 -- --
Receivable due from
investment adviser... -- -- -- -- -- 126,135 --
Prepaid expenses...... 30,391 1,204 7,357 3,305 3,726 996 --
Unamortized
organization costs
(Note 5)............. -- -- -- -- -- 18,883 --
-------------- ----------- ------------ ------------ ------------ ----------- ------------
TOTAL ASSETS.......... 1,379,101,187 39,833,237 290,867,950 155,448,103 193,940,019 53,845,479 225,638,273
LIABILITIES:
Payable for dividends
declared............. 3,395,357 116,750 918,469 459,578 564,823 142,788 522,299
Payable for fund
shares redeemed...... -- -- 3,970 15,000 21,846 338,797 --
Payable for
investments
purchased............ -- -- -- 5,389,628 22,310,247 877,503 --
Investment advisory
fees payable (Note
2)................... 212,092 9,473 79,903 55,439 57,447 -- 13,111
Administration fees
payable (Note 2)..... 179,075 4,184 40,051 19,999 20,927 7,322 25,641
Administration service
fees payable (Note
2)................... 110,703 4,840 28,474 5,804 15,653 27,812 --
Directors' fees
payable (Note 2)..... 23,596 958 5,287 2,463 2,125 620 1,991
Due to custodian bank. 1,404,841 -- -- -- 1,138 -- 1,804
Accrued expenses and
other payables....... 125,585 16,035 43,507 18,362 20,046 11,812 26,547
-------------- ----------- ------------ ------------ ------------ ----------- ------------
TOTAL LIABILITIES..... 5,451,249 152,240 1,119,661 5,966,273 23,014,252 1,406,654 591,393
-------------- ----------- ------------ ------------ ------------ ----------- ------------
NET ASSETS............. $1,373,649,938 $39,680,997 $289,748,289 $149,481,830 $170,925,767 $52,438,825 $225,046,880
============== =========== ============ ============ ============ =========== ============
NET ASSETS consist of:
Undistributed
(distributions in
excess of) net
investment income.... $ (30,728) $ (121) -- $ (32) $ 55,607 --
Accumulated net
realized gain (loss)
on investments....... (167,000) (466,171) $ 3,296,502 1,668,041 3,717,161 $ 13,491 --
Unrealized
appreciation of
investments.......... -- 604,999 14,119,673 5,713,639 9,179,411 1,271,835 --
Par value (Note 4).... 1,374,547 5,535 29,920 16,645 16,572 7,215 $ 225,047
Paid in capital in
excess of par value.. 1,372,473,119 39,536,755 272,302,194 142,083,537 157,957,016 51,146,284 224,821,833
-------------- ----------- ------------ ------------ ------------ ----------- ------------
TOTAL NET ASSETS....... $1,373,649,938 $39,680,997 $289,748,289 $149,481,830 $170,925,767 $52,438,825 $225,046,880
============== =========== ============ ============ ============ =========== ============
Shares of Common Stock
Outstanding........... 1,374,516,827 5,534,674 29,920,334 16,645,333 16,572,618 7,215,127 225,046,880
NET ASSET VALUE PER
SHARE................. $1.00 $7.17 $9.68 $8.98 $10.31 $7.27 $1.00
===== ===== ===== ===== ====== ===== =====
</TABLE>
See Notes to Financial Statements
1
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NEW YORK
SHORT-TERM INTERMEDIATE- INTERMEDIATE- CALIFORNIA NEW YORK
TAX-EXEMPT TAX-EXEMPT TERM TERM LONG-TERM TAX-EXEMPT TAX-EXEMPT
MONEY SECURITIES TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT INCOME MONEY
FUND FUND FUND FUND FUND FUND FUND*
----------- ---------- ------------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........... $25,173,783 $ 849,032 $ 6,407,819 $3,148,303 $3,969,980 $ 837,364 $1,016,650
----------- ---------- ----------- ---------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees
(Note 2)................. 1,747,300 60,079 479,833 347,677 394,633 98,577 156,633
Administration fees
(Note 2)................. 1,069,348 30,640 209,755 106,389 120,758 30,165 47,507
Administrative servicing
fees (Note 2)............ 340,805 13,834 82,763 18,477 63,063 77,040 --
Shareholder servicing
agent fees............... 14,117 4,912 9,660 4,513 23,095 10,397 772
Custodian fees............ 180,863 6,171 34,545 17,655 21,803 5,592 8,306
Registration and filing
fees..................... 9,814 6,882 10,359 182 8,544 984 269
Legal and audit fees...... 91,199 3,150 17,222 8,373 9,480 2,654 5,803
Directors' fees and ex-
penses (Note 2).......... 48,404 1,424 9,220 4,361 4,655 1,242 1,991
Shareholder reports....... 20,741 2,199 14,191 4,408 5,742 2,389 1,870
Amortization of organiza-
tion costs (Note 5)...... -- -- 2,516 -- -- 3,153 --
Miscellaneous expenses.... 97,567 2,819 12,845 4,662 5,856 3,408 17,413
----------- ---------- ----------- ---------- ---------- ---------- ----------
TOTAL EXPENSES............ 3,620,158 132,110 882,909 516,697 657,629 235,601 240,564
Fees waived and reimbursed
by investment adviser and
administrators (Note 2).. (340,805) (13,834) (82,763) (18,477) (63,063) (137,240) (107,706)
----------- ---------- ----------- ---------- ---------- ---------- ----------
NET EXPENSES.............. 3,279,353 118,276 800,146 498,220 594,566 98,361 132,858
----------- ---------- ----------- ---------- ---------- ---------- ----------
NET INVESTMENT INCOME...... 21,894,430 730,756 5,607,673 2,650,083 3,375,414 739,003 883,792
----------- ---------- ----------- ---------- ---------- ---------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
(NOTE 1):
Net realized gain (loss)
on security transactions. (30,844) 96,716 5,005,239 1,951,687 3,766,650 (50) --
Change in unrealized
appreciation/depreciation
of investments during the
period................... -- 239,203 927,102 1,262,775 837,365 591,103 --
----------- ---------- ----------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS............... (30,844) 335,919 5,932,341 3,214,462 4,604,015 591,053 --
----------- ---------- ----------- ---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. $21,863,586 $1,066,675 $11,540,014 $5,864,545 $7,979,429 $1,330,056 $ 883,792
=========== ========== =========== ========== ========== ========== ==========
</TABLE>
* New York Tax-Exempt Money Fund commenced operations on August 3, 1998.
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 NEW YORK
TAX-EXEMPT TAX-EXEMPT TERM TERM LONG-TERM TAX-EXEMPT TAX-EXEMPT
MONEY SECURITIES TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT INCOME MONEY
FUND FUND FUND FUND FUND FUND FUND*
-------------- ----------- ------------- ------------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED
SEPTEMBER 30, 1998 (UNAUDITED)
Net investment income... $ 21,894,430 $ 730,756 $ 5,607,673 $ 2,650,083 $ 3,375,414 $ 739,003 $ 883,792
Net realized gain (loss)
on investments......... (30,844) 96,716 5,005,239 1,951,687 3,766,650 (50) --
Change in unrealized
appreciation/depreciation
of investments during
the period............. -- 239,203 927,102 1,262,775 837,365 591,103 --
-------------- ----------- ------------ ------------ ------------ ----------- ------------
Net increase in net
assets resulting from
operations............. 21,863,586 1,066,675 11,540,014 5,864,545 7,979,429 1,330,056 883,792
Distributions to
shareholders from net
investment income...... (21,925,170) (730,756) (5,607,673) (2,650,083) (3,375,414) (739,003) (883,792)
Increase (decrease) in
net assets from fund
share transactions
(Note 4)............... (22,819,522) (3,000,399) 12,800,111 14,973,613 16,786,587 19,281,957 225,046,880
-------------- ----------- ------------ ------------ ------------ ----------- ------------
Net increase (decrease)
in net assets.......... (22,881,106) (2,664,480) 18,732,452 18,188,075 21,390,602 19,873,010 225,046,880
NET ASSETS:
Beginning of period.... 1,396,531,044 42,345,477 271,015,837 131,293,755 149,535,165 32,565,815 --
-------------- ----------- ------------ ------------ ------------ ----------- ------------
End of period (1)...... $1,373,649,938 $39,680,997 $289,748,289 $149,481,830 $170,925,767 $52,438,825 $225,046,880
============== =========== ============ ============ ============ =========== ============
-------
(1) Including
undistributed
(distributions in
excess of) net
investment income... $ (30,728) $ (121) $ -- $ (32) $ 55,607 $ -- $ --
============== =========== ============ ============ ============ =========== ============
YEAR ENDED MARCH 31,
1998
Net investment income... $ 37,894,217 $ 1,548,052 $ 11,248,285 $ 4,755,911 $ 5,590,649 $ 1,008,765
Net realized gain (loss)
on investments......... (24,067) 74,408 3,134,713 1,166,547 1,490,047 14,150
Change in unrealized
appreciation/depreciation
of investments during
the year............... -- 350,314 6,670,419 3,269,041 6,969,186 786,139
-------------- ----------- ------------ ------------ ------------ -----------
Net increase in net
assets resulting from
operations............. 37,870,150 1,972,774 21,053,417 9,191,499 14,049,882 1,809,054
Distributions to
shareholders:
From net investment
income................ (37,894,205) (1,547,934) (10,925,984) (4,755,911) (5,521,851) (1,008,765)
In excess of net
investment income..... -- (123) -- (32) -- --
From net realized gain
on investments........ -- -- (322,255) -- (1,525,577) --
In excess of net
realized gain on
investments........... -- -- -- -- (49,489) --
Increase in net assets
from fund share
transactions (Note 4).. 326,868,880 843,112 17,160,382 24,606,206 34,655,748 18,533,553
-------------- ----------- ------------ ------------ ------------ -----------
Net increase in net
assets................. 326,844,825 1,267,829 26,965,560 29,041,762 41,608,713 19,333,842
NET ASSETS:
Beginning of year...... 1,069,686,219 41,077,648 244,050,277 102,251,993 107,926,452 13,231,973
-------------- ----------- ------------ ------------ ------------ -----------
End of year (1)........ $1,396,531,044 $42,345,477 $271,015,837 $131,293,755 $149,535,165 $32,565,815
============== =========== ============ ============ ============ ===========
-------
(1) Including
undistributed
(distributions in
excess of) net
investment income... $ 12 $ (121) $ -- $ (32) $ 55,607 $ --
============== =========== ============ ============ ============ ===========
</TABLE>
* New York Tax-Exempt Money Fund commenced operations on August 3, 1998.
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>
DIVIDENDS DISTRIBUTION
NET ASSET NET REALIZED TOTAL DIVIDENDS IN EXCESS OF FROM NET
VALUE, NET AND UNREALIZED FROM FROM NET NET REALIZED
BEGINNING INVESTMENT GAIN (LOSS) INVESTMENT INVESTMENT INVESTMENT GAIN ON
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME INCOME INVESTMENTS
--------- ---------- -------------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAX-EXEMPT MONEY FUND--
(5/24/85*)
Year Ended March 31,
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) -- --
1998................... 1.00 0.03216 -- 0.03216 (0.03216) -- --
Six Months Ended Sep-
tember 30, 1998 (Unau-
dited)................ 1.00 0.01572 -- 0.01572 (0.01572) -- --
SHORT-TERM TAX-EXEMPT
SECURITIES FUND--(12/31/92*)
Year Ended March 31,
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) -- --
1998................... 7.03 0.27 0.08 0.35 (0.27) --# --
Six Months Ended Sep-
tember 30, 1998 (Unau-
dited)................ 7.11 0.13 0.06 0.19 (0.13) -- --
INTERMEDIATE-TERM TAX-
EXEMPT FUND--(12/3/85*)
Year Ended March 31,
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) -- --
1998................... 9.11 0.42 0.37 0.79 (0.41) -- (0.01)
Six Months Ended Sep-
tember 30, 1998 (Unau-
dited)................ 9.48 0.19 0.20 0.39 (0.19) -- --
NEW YORK INTERMEDIATE-
TERM TAX-EXEMPT FUND--(5/31/90*)
Year Ended March 31,
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) -- --
1998................... 8.45 0.35 0.34 0.69 (0.35) --# --
Six Months Ended Sep-
tember 30, 1998 (Unau-
dited)................ 8.79 0.17 0.19 0.36 (0.17) -- --
LONG-TERM TAX-EXEMPT FUND--
(2/5/86*)
Year Ended March 31,
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)
1998................... 9.43 0.44 0.71 1.15 (0.43) -- (0.12)
Six Months Ended Sep-
tember 30, 1998 (Unau-
dited)................ 10.03 0.22 0.28 0.50 (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) -- --
Year ended March 31,
1998.................. 6.95 0.28 0.23 0.51 (0.28) -- --
Six Months Ended Sep-
tember 30, 1998 (Unau-
dited)................ 7.18 0.14 0.09 0.23 (0.14) -- --
NEW YORK TAX-EXEMPT MONEY
FUND--(8/3/98*)
Period ended September
30, 1998 (Unaudited).. $ 1.00 $0.00453 -- $0.00453 $(0.00453) -- --
</TABLE>
* Commencement of operations
** Annualized
+ Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
# Amount represents less than $0.01 per share.
See Notes to Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF RATIO OF
DISTRIBUTIONS NET GROSS NET
IN EXCESS OF NET ASSET NET ASSETS, OPERATING OPERATING INVESTMENT
NET REALIZED VALUE, END EXPENSES EXPENSES INCOME PORTFOLIO FEE
GAIN ON TOTAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE TO AVERAGE TURNOVER WAIVERS
INVESTMENTS DISTRIBUTIONS OF PERIOD RETURN (000'S) NET ASSETS NET ASSETS+ NET ASSETS RATE (NOTE 2)
------------- ------------- --------- ------ ----------- ---------- ----------- ---------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-- $(0.01938) $ 1.00 1.96% $ 694,581 0.52% 0.52% 1.94% -- $0.00003
-- (0.02825) 1.00 2.86% 814,890 0.49% 0.52% 2.85% -- 0.00030
-- (0.03362) 1.00 3.41% 966,711 0.49% 0.53% 3.35% -- 0.00042
-- (0.03050) 1.00 3.09% 1,069,686 0.47% 0.52% 3.05% -- 0.00053
-- (0.03216) 1.00 3.26% 1,396,531 0.47% 0.53% 3.21% -- 0.00053
-- (0.01572) 1.00 3.16%** 1,373,650 0.47%** 0.52%** 3.13%** -- 0.00024
-- $ (0.26) $ 6.99 2.55% $ 57,728 0.59% 0.60% 2.94% 539% --
-- (0.26) 6.96 3.45% 48,188 0.59% 0.61% 3.60% 565% --
-- (0.28) 7.05 5.42% 42,970 0.58% 0.64% 4.05% 124% --
-- (0.27) 7.03 3.55% 41,078 0.58% 0.65% 3.73% 87% --
-- (0.27) 7.11 5.01% 42,345 0.59% 0.65% 3.76% 58% -- #
-- (0.13) 7.17 5.43%** 39,681 0.59%** 0.66%** 3.65%** 44%** -- #
$(0.25) $ (0.85) $ 8.64 2.58% $ 298,261 0.64% 0.64% 3.74% 379% --
-- (0.37) 8.80 6.34% 234,990 0.61% 0.64% 4.28% 362% --
-- (0.40) 9.12 8.30% 255,178 0.60% 0.65% 4.44% 50% --
-- (0.41) 9.11 4.58% 244,050 0.58% 0.64% 4.56% 28% --
-- (0.42) 9.48 8.81% 271,016 0.58% 0.64% 4.47% 30% -- #
-- (0.19) 9.68 8.54%** 289,748 0.58%** 0.64%** 4.09%** 64%** -- #
$(0.08) $ (0.61) $ 8.18 1.87% $ 107,489 0.87% 0.87% 3.55% 326% --
-- (0.42) 8.24 6.05% 87,164 0.78% 0.80% 4.06% 563% --
-- (0.35) 8.44 6.77% 96,407 0.75% 0.77% 4.15% 154% --
-- (0.36) 8.45 4.46% 102,252 0.72% 0.75% 4.25% 89% --
-- (0.35) 8.79 8.35% 131,294 0.71% 0.74% 4.08% 47% -- #
-- (0.17) 8.98 8.36%** 149,482 0.72%** 0.74%** 3.81%** 83%** -- #
$(0.27) $ (1.19) $ 8.87 2.38% $ 82,151 0.85% 0.86% 4.25% 252% --
-- (0.53) 9.27 11.01% 78,880 0.80% 0.83% 4.86% 214% --
-- (0.60) 9.53 9.35% 91,058 0.77% 0.82% 4.85% 185% $ 0.01
-- (0.59) 9.43 5.47% 107,926 0.74% 0.81% 4.80% 125% 0.01
--# (0.55) 10.03 12.18% 149,535 0.74% 0.81% 4.40% 83% 0.01
-- (0.22) 10.31 10.18%** 170,926 0.75%** 0.83%** 4.27%** 111%** -- #
-- $ (0.12) $ 6.95 2.12%** $ 13,232 0.66%** 1.53%** 3.69%** 7%** $ 0.03
-- (0.28) 7.18 7.42% 32,566 0.50% 1.24% 3.90% 14% 0.05
-- (0.14) 7.27 6.39%** 52,439 0.50%** 1.19%** 3.75%** 7%** 0.03
-- $(0.00453) $ 1.00 2.82%** $ 225,047 0.42%** 0.77%** 2.82%** -- $0.00055
</TABLE>
See Notes to Financial Statements
5
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
TAX-EXEMPT MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT
SECURITIES -- 63.29%
$10,000,000 Burke County, Georgia, Development Authority,
Commercial Paper, (AMBAC), 3.350%, 01/21/1999..... $ 10,000,000
25,000,000 Burke County, Georgia, Development Authority,
Commercial Paper, (AMBAC), 3.450%, 11/12/1998..... 25,000,000
21,600,000 Burke County, Georgia, Development Authority,
Pollution Control Refunding Revenue Bonds,
Oglethorpe Power Corp., Series A, (FGIC),
3.500%, 01/01/2016................................ 21,600,000
15,000,000 City of Montgomery, Alabama, Commercial Paper,
4.200%, 10/08/1998................................ 15,000,000
12,800,000 City of Sullivan, Indiana, Commercial Paper,
3.550%, 12/15/1998................................ 12,800,000
30,000,000 Georgia Municipal Gas Authority, Gas Revenue
Bonds, Gas Portfolio II Project, Series C,
3.500%, 01/01/2008+............................... 30,000,000
10,000,000 Guam Power Authority, Commercial Paper, (AMBAC),
3.050%, 11/02/1998................................ 10,000,000
14,800,000 Harris County, Texas, Health Facilities
Development Corp., Hospital Refunding Revenue
Bonds, Memorial Hospital System Project, Series B,
(MBIA), 3.500%, 06/01/2024+....................... 14,800,000
16,100,000 Houston, Texas, General Obligation Commercial
Paper, 3.700%, 10/07/1998......................... 16,100,000
20,000,000 Intermountain Power Agency, Utah, Commercial
Paper, Series 85F, 3.350%, 02/01/1999............. 20,000,000
10,200,000 Intermountain Power Agency, Utah, Commercial
Paper, 3.400%, 02/10/1999......................... 10,200,000
15,000,000 Jacksonville, Florida, Electric Authority
Commercial Paper, 3.350%, 12/07/1998.............. 15,000,000
15,000,000 Jacksonville, Florida, Electric Authority
Commercial Paper, 3.350%, 01/12/1999.............. 15,000,000
23,950,000 Jasper County, Indiana, Commercial Paper, Northern
Indiana Public Services,
3.550%, 12/14/1998................................ 23,950,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT
SECURITIES -- (CONTINUED)
$32,200,000 Jasper County, Indiana, Commercial Paper, Northern
Indiana Public Services,
3.400%, 12/16/1998................................ $ 32,200,000
2,000,000 Jasper County, Indiana, Commercial Paper, Northern
Indiana Public Services,
3.400%, 03/01/1999................................ 2,000,000
4,200,000 Joliet, Illinois, Regional Port District Marine
Terminal Refunding Revenue Bonds, Exxon Project,
3.900%, 10/01/2024+............................... 4,200,000
25,000,000 Kentucky Asset/Liability Fund, Commercial Paper,
3.500%, 12/03/1998................................ 25,000,000
30,000,000 King County, Washington, Commercial Paper,
3.500%, 11/17/1998................................ 30,000,000
18,862,000 Maryland State, Health & Higher Educational
Facilities Authority Lease Commercial Paper,
3.550%, 12/17/1998................................ 18,862,000
20,000,000 Massachusetts, Massachusetts Bay Transportation
Authority Revenue Bonds, Series A,
4.250%, 02/26/1999................................ 20,065,800
10,000,000 Nassau County, New York, Industrial Development
Agency, Civic Facility Revenue Bonds, Cold Spring
Harbor Lab Project, 4.000%, 05/18/1999............ 10,040,008
20,000,000 New Jersey State Transportation, Commercial Paper,
3.350%, 03/08/1999................................ 20,000,000
3,700,000 New York City, New York, Triborough Bridge &
Tunnel Authority, Special Obligation Revenue
Bonds, (FGIC), 3.350%, 01/01/2024................. 3,700,000
2,500,000 New York State Dormitory Authority, Cornell
University Revenue Bonds, Series B,
4.100%, 07/01/2025+............................... 2,500,000
10,000,000 New York State Power Authority & General Purpose
Revenue Bonds, 3.450%, 03/01/2016+................ 10,000,000
26,500,000 Nueces River, Texas, San Miguel Electric Corp.,
Commercial Paper, CFC Guaranty,
3.450%, 11/24/1998................................ 26,500,000
10,000,000 Omaha, Nebraska, Public Water District Commercial
Paper, 3.400%, 12/07/1998......................... 10,000,000
</TABLE>
See Notes to Financial Statements
6
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
TAX-EXEMPT MONEY FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT
SECURITIES -- (CONTINUED)
$ 6,500,000 Pleasant Prairie, Wisconsin, Pollution Control
Refunding Revenue Bonds, Wisconsin Electric Power
Co., Series A, 3.950%, 09/01/2030+................ $ 6,500,000
5,000,000 Pleasant Prairie, Wisconsin, Pollution Control
Refunding Revenue Bonds, Wisconsin Electric Power
Co., Series C, 3.950%, 09/01/2030+................ 5,000,000
2,000,000 Port Authority of New York & New Jersey, Special
Obligation Revenue Bonds, Series 2,
4.200%, 05/01/2019................................ 2,000,000
2,980,000 Purdue University, Indiana, University Revenue
Bonds, Student Fee, Series E,
3.550%, 07/01/2011................................ 2,980,000
2,935,000 Purdue University, Indiana, University Revenue
Bonds, Student Fee, Series H, 2.400%, 07/01/2017+. 2,935,000
3,350,000 Purdue University, Indiana, University Revenue
Bonds, Student Fee, Series O, 3.550%, 07/01/2019+. 3,350,000
25,985,000 Salt River, Arizona, Electric & Gas Commercial
Paper, 3.350%, 01/13/1999......................... 25,985,000
34,350,000 Salt River, Arizona, Electric & Gas Commercial
Paper, 3.550%, 12/18/1998......................... 34,350,000
10,000,000 San Antonio, Texas, Electric & Gas Commercial
Paper, 3.300%, 11/12/1998......................... 10,000,000
35,300,000 San Antonio, Texas, Electric & Gas Commercial
Paper, 3.450%, 11/17/1998......................... 35,300,000
17,700,000 San Antonio, Texas, Electric & Gas Commercial
Paper, 3.350%, 02/01/1999......................... 17,700,000
25,000,000 Shelby County, Tennessee, Commercial Paper,
3.550%, 12/09/1998................................ 25,000,000
30,000,000 Shelby County, Tennessee, Commercial Paper,
3.600%, 12/10/1998................................ 30,000,000
22,063,000 South Carolina State, Public Service Authority
Commercial Paper, 3.350%, 01/12/1999.............. 22,063,000
35,000,000 South Carolina State, Public Service Authority
Commercial Paper, 3.600%, 12/11/1998.............. 35,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT
SECURITIES -- (CONTINUED)
$10,000,000 Tennessee State, Bond Anticipation Notes, Series
A, 3.450%, 07/01/2001+........................... $ 10,000,000
25,000,000 Texas State, General Obligation Bonds, Series
A57, 3.450%, 08/31/1999+......................... 25,000,000
25,000,000 Texas State, General Obligation Bonds, Series
A58, 3.450%, 08/31/1999+......................... 25,000,000
16,000,000 Texas State, General Obligation Commercial Paper,
3.550%, 10/19/1998............................... 16,000,000
23,000,000 University of Texas, Commercial Paper,
3.400%, 12/09/1998............................... 23,000,000
30,000,000 Utah, General Obligation Commercial Paper,
3.350%, 01/12/1999............................... 30,000,000
5,400,000 Utah, General Obligation Commercial Paper,
3.250%, 03/01/1999............................... 5,400,000
7,000,000 Valdez, Alaska, Marine Term Refunding Revenue
Bonds, Exxon Pipeline Co. Project, Series C,
3.650%, 05/01/2031+.............................. 7,000,000
15,240,000 Wisconsin State, General Obligation Commercial
Paper, 3.350%, 02/01/1999........................ 15,240,000
--------------
869,320,808
--------------
TAX-EXEMPT CASH EQUIVALENTS -- BACKED BY LETTERS OF CREDIT -- 36.58%
BANK OF AMERICA
---------------
15,000,000 Intermountain Power Agency, Utah, Commercial
Paper, 3.550%, 12/15/1998........................ 15,000,000
3,800,000 Maricopa County, Arizona, Corp. Pollution Control
Refunding Revenue Bonds, Arizona Public Services
Company, Series F, 4.200%, 05/01/2029............ 3,800,000
20,000,000 Michigan Technological University Revenue Bonds,
Series A, (AMBAC),
3.650%, 10/01/2018+.............................. 20,000,000
20,000,000 Des Moines, Iowa, Hospital Facilities Revenue
Bonds, Iowa Methodist Medical Center Project,
3.500%, 08/01/2015+ ............................. 20,000,000
BANK OF NEW YORK
----------------
25,000,000 Ohio County, Kentucky, Pollution Control Revenue
Bonds, Big Rivers Electric Corp., Series 1983,
4.000%, 06/01/2013+.............................. 25,000,000
</TABLE>
See Notes to Financial Statements
7
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (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)
BANK OF NOVA SCOTIA
-------------------
$11,200,000 Gary, Indiana, Environmental Improvement Revenue
Notes, U.S. Steel Corp. Project, Series 1984,
3.600%, 07/15/2002+............................... $11,200,000
3,400,000 New Hampshire State Industrial Development
Authority, Pollution Control Revenue Bonds, Bangor
Hydro-Electric Co. Project, Series 1983,
3.550%, 01/01/2009+............................... 3,400,000
BANK OF TOKYO
-------------
14,400,000 University of Iowa, Facilities Revenue Bonds,
Human Biology Research, Series A,
3.800%, 06/01/2005+............................... 14,400,000
BARCLAYS BANK, PLC
------------------
7,700,000 Bucks County, Pennsylvania, Industrial Development
Authority Revenue Bonds, Tru Realty -- Toys R Us
Project, 3.500%, 12/01/2018....................... 7,700,000
BAYERISCHE LANDESBANK
---------------------
5,900,000 Municipal Assistance Corporation for the City of
New York, Subseries K2,
3.300%, 07/01/2008+ .............................. 5,900,000
CHASE MANHATTAN BANK
--------------------
5,200,000 New York City, New York, General Obligation
Commercial Paper, 3.300%, 10/19/1998.............. 5,200,000
CITIBANK N.A.
-------------
5,000,000 New York City, New York, Housing Development
Corporate Mortgage Revenue Bonds, Parkgate Tower,
3.550%, 12/01/2007+............................... 5,000,000
COMMERZBANK A.G.
----------------
4,000,000 New York State Housing Finance Agency Revenue
Bonds, Series A, 3.250%, 03/15/2027+.............. 4,000,000
CREDIT SUISSE
-------------
6,900,000 Garden City, Kansas, Industrial Development
Revenue Bonds, Inland Container Corp. Project,
Temple Series 1983, 3.500%, 01/01/2008+........... 6,900,000
FIRST NATIONAL BANK OF CHIKAGO
------------------------------
47,120,000 Coastal Bend Health Facilities Development Corp.,
Texas, Incarnate Health System,
4.000%, 08/15/2027+............................... 47,120,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENTS -- BACKED BY LETTERS OF CREDIT -- (CONTINUED)
INDUSTRIAL BANK OF JAPAN
------------------------
$ 4,200,000 New York City, New York, General Obligation Bonds,
Subseries E2, 4.200%, 08/01/2021+................. $ 4,200,000
KREDIETBANK, N.V.
-----------------
14,795,000 Illinois Health Facilities Authority Revenue
Bonds, Memorial Medical Center, Series C,
4.000%, 01/01/2016+............................... 14,795,000
LANDESBANK HESSEN-THURINGEN
---------------------------
3,100,000 New York State Housing Finance Agency Revenue
Bonds, Normandie Court I Project, 3.300%,
05/15/2015+....................................... 3,100,000
LASALLE NATIONAL BANK
---------------------
17,500,000 Flint, Michigan, Hospital Building Authority
Revenue Bonds, Hurley Medical Center, Series B,
4.000%, 07/01/2015+............................... 17,500,000
14,000,000 Illinois Health Facilities Authority Revenue
Bonds, Ingalls Memorial Hospital, Series B,
3.650%, 01/01/2016+............................... 14,000,000
5,450,000 Illinois Health Facilities Authority Revenue
Bonds, Ingalls Memorial Hospital, Series C,
3.650%, 01/01/2016+............................... 5,450,000
MORGAN GUARANTY TRUST
---------------------
6,900,000 Kenton County, Kentucky, Industrial Building
Revenue Bonds, Redken Labs, Inc. Project, Series
1984, 3.600%, 12/01/2014+......................... 6,900,000
10,000,000 North Carolina Eastern Municipal Power Agency
Commercial Paper,
3.600%, 11/16/1998................................ 10,000,000
13,910,000 North Carolina Eastern Municipal Power Agency
Commercial Paper,
3.500%, 11/16/1998................................ 13,910,000
NORDDEUTSCHE LANDESBANK
-----------------------
14,800,000 Brazos, Texas, Harbor Industrial Development Corp.
Revenue Bonds, Badische Corp.,
3.600%, 12/01/2013+............................... 14,800,000
NORTHERN TRUST
--------------
400,000 Illinois Health Facilities Authority Revenue
Bonds, Healthcorp Affiliates, Series A, (MBIA),
3.600%, 11/01/2015+............................... 400,000
</TABLE>
See Notes to Financial Statements
8
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (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)
RABOBANK NEDERLANDER
--------------------
$ 6,100,000 Illinois Health Facilities Authority Revenue
Bonds, Healthcorp Affiliates,
3.600%, 11/01/2015+.............................. $ 6,100,000
31,200,000 Indiana Health Facilities Financing Authority
Revenue Bonds, St. Anthony's Medical Center
Project, 3.950%, 12/01/2014+..................... 31,200,000
2,800,000 Indiana Health Facilities Financing Authority
Revenue Bonds, St. Anthony's Medical Center,
Inc., 3.950%, 12/01/2017+........................ 2,800,000
9,200,000 Mississippi Hospital Equipment & Facilities
Authority Revenue Bonds, Mississippi Baptist
Medical Center,
3.950%, 07/01/2012+.............................. 9,200,000
SAKURA BANK
-----------
7,700,000 New York State Dormitory Authority Commercial
Paper, 3.450%, 11/16/1998........................ 7,700,000
SANWA BANK
----------
4,600,000 Michigan State Job Development Authority Revenue
Bonds, Hitachi Metals International Project,
3.900%, 01/01/2004+.............................. 4,600,000
SUMITOMO BANK, LTD.
------------------
10,200,000 Wake County, North Carolina, Industrial
Facilities & Pollution Control Financing
Authority Revenue Bonds, Carolina Power & Light
Co., Series 1985-B, 3.600%, 09/01/2015+.......... 10,200,000
12,900,000 Wake County, North Carolina, Industrial
Facilities & Pollution Control Financing
Authority Revenue Bonds, Carolina Power & Light
Co., Series 1985-C, 3.600%, 10/01/2015+.......... 12,900,000
TORONTO DOMINION BANK, LTD.
--------------------------
7,200,000 New York City, New York, Health & Hospital
Revenue Bonds, Health Systems, Series C,
3.350%, 02/15/2026+.............................. 7,200,000
5,300,000 New York Sate Energy Restructuring & Development
Authority, Pollution Control Revenue Bonds,
Niagara Mohawk Corp. Project, Series A,
4.100%, 03/01/2027............................... 5,300,000
29,600,000 Wisconsin State Health Facilities Authority
Revenue Bonds, Wheaton Franciscan Health Care,
3.920%, 08/15/2016+.............................. 29,600,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENTS -- BACKED BY LETTERS OF CREDIT -- (CONTINUED)
WACHOVIA BANK
-------------
$27,000,000 Baltimore, Maryland, Port Facilities Revenue
Bonds, Occidental Petroleum, Series 1981,
3.550%, 10/14/2011+.............................. $ 27,000,000
WESTDEUTSCHE LANDESBANK
-----------------------
30,000,000 Dallas, Texas, Rapid Transit Authority Revenue
Bonds, 3.600%, 12/11/1998........................ 30,000,000
19,000,000 Municipal Assistance Corporation for the City of
New York, Subseries K1,
3.300%, 07/01/2008+.............................. 19,000,000
--------------
502,475,000
--------------
<CAPTION>
SHARES
-----------
<C> <S> <C>
OTHER INVESTMENTS -- 0.12%
1,653,200 Dreyfus Tax-Exempt Cash Management Fund.......... 1,653,200
800 Nuveen Tax-Exempt Money Market Fund.............. 800
--------------
1,654,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $1,373,449,808*)................ 99.99% $1,373,449,808
OTHER ASSETS & LIABILITIES (NET)........................ 0.01 200,130
------ --------------
NET ASSETS.............................................. 100.00% $1,373,649,938
====== ==============
</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, 1998, approximately, 37% 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, 1998, approximately, 22% 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
9
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SHORT-TERM TAX-EXEMPT SECURITIES FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 93.07%
$ 1,900,000 Boston, Massachusetts, General Obligation Bonds,
Series A, (FGIC),
4.500%, 01/01/2002................................ $ 1,943,742
1,700,000 Burlington County, New Jersey, General Obligation
Bonds, 5.200%, 10/01/2000......................... 1,754,099
1,000,000 Cobb County & Marietta, Georgia, Water Authority,
Water Refunding Revenue Bonds,
4.900%, 11/01/2002................................ 1,043,161
1,500,000 Connecticut State General Obligation Bonds, Series
C,
5.100%, 03/15/2000................................ 1,534,453
1,000,000 Connecticut State Special Assessment Unemployment
Compensation Advisory Fund, Refunding Revenue
Bonds, Series A, (AMBAC), 5.500%, 05/15/2001...... 1,048,164
1,000,000 Connecticut State Special Tax Obligation Refunding
Revenue Bonds, Transportation Infrastructure
Purposes, Series C, (FGIC),
5.500%, 10/01/2000................................ 1,037,967
2,000,000 Delaware State General Obligation Bonds, Series B,
5.000%, 05/01/2000................................ 2,043,660
1,900,000 Georgia State Tollway Authority, State Guaranteed
Refunding Revenue Bonds, Georgia 400 Project,
4.500%, 07/01/2001................................ 1,941,838
1,500,000 Hawaii State General Obligation Bonds, Series CS,
(MBIA), 5.250%, 04/01/2004........................ 1,603,247
1,700,000 Minneapolis, Minnesota, Special School District
No. 001, Certificates of Participation, Series A,
(MBIA), 5.500%, 02/01/2003........................ 1,818,648
1,275,000 Monmouth County, New Jersey, General Obligation
Bonds, 5.000%, 10/01/2000......................... 1,311,183
1,900,000 Monroe County, New York, Refunding Public
Improvement General Obligation Bonds, Series A,
5.000%, 03/01/2001................................ 1,959,272
2,000,000 Municipal Assistance Corporation for New York
City, New York, Revenue Bonds, Series E,
5.500%, 07/01/2000................................ 2,064,212
3,000,000 Municipal Assistance Corporation for New York
City, New York, Revenue Bonds, Series I,
5.250%, 07/01/2003................................ 3,183,327
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 1,000,000 Nebraska Public Power Distribution Revenue Bonds,
Series B,
5.000%, 01/01/2002............................... $ 1,035,715
2,000,000 New Jersey State Transportation Corp. Revenue
Bonds, Capital Grant Anticipation Notes, Series
A, (FSA),
5.250%, 09/01/2001............................... 2,073,398
2,000,000 New York City, New York, Trust for Cultural
Resources, Museum of Modern Art Revenue Bonds,
Series A, (AMBAC),
5.000%, 01/01/2000............................... 2,038,078
1,700,000 North Carolina State General Obligation Unlimited
Revenue Bonds, Series A, 4.750%, 04/01/2003...... 1,771,980
1,500,000 Omaha Public Power District, Nebraska, Electric
Refunding Revenue Bonds, Series A,
5.000%, 02/01/2001............................... 1,543,862
2,000,000 Stamford, Connecticut, Refunding General
Obligation Bonds, 5.000%, 07/15/2002............. 2,104,832
2,000,000 Texas State General Obligation Bonds, Series B,
5.000%, 10/01/2001............................... 2,075,556
--------------
36,930,394
--------------
TAX-EXEMPT SECURITIES -- ESCROWED IN U.S.
GOVERNMENTS -- 5.28%
1,900,000 New York State, Local Assistance Corp. Revenue
Bonds, Series B, 7.250%, 04/01/2005
(Prerefunded 04/01/2001)......................... 2,097,385
--------------
<CAPTION>
SHARES
-----------
<C> <S> <C>
OTHER INVESTMENTS -- 0.37%
147,200 Shearson Tax-Exempt Municipal Fund .............. 147,200
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $38,569,980*)...................... 98.72% $39,174,979
OTHER ASSETS & LIABILITIES (NET)........................... 1.28 506,018
------ -----------
NET ASSETS................................................. 100.00% $39,680,997
====== ===========
</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.
See Notes to Financial Statements
10
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (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, 1998, approximately, 5% 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, 1998, approximately, 29% 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
11
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERMEDIATE-TERM TAX-EXEMPT FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- -------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 93.45%
$10,000,000 Alabama State Public School & College Authority,
Capital Improvement Revenue Bonds, (MBIA),
5.250%, 11/01/2005................................. $ 10,802,760
10,000,000 Burke County, Georgia, Development Authority
Pollution Control Revenue Bonds, Georgia Power
Company, 3.900%, 04/01/2032+....................... 10,000,000
10,000,000 Cobb County, Georgia School District, General
Obligation Bonds,
4.750%, 02/01/2005................................. 10,466,910
10,000,000 Connecticut State General Obligation Bonds, Series
C,
5.500%, 08/01/2006................................. 11,049,500
20,000,000 Connecticut State Special Tax Obligation Refunding
Revenue Bonds, Transportation Infrastructure,
Series A, (FGIC),
5.500%, 10/01/2010................................. 22,351,460
10,000,000 Fairfax County, Virginia, Refunding General
Obligation Bonds, Series C,
5.250%, 05/01/2008................................. 10,620,370
10,000,000 Florida State Board of Education Refunding General
Obligation Bonds, Series A,
5.000%, 06/01/2007................................. 10,748,740
10,000,000 Florida State Division Board Finance Department,
General Services Refunding Revenue Bonds,
Environment Protection-Preservation 2000,
Series A, (FSA),
5.500%, 07/01/2008................................. 11,123,960
10,000,000 Georgia State General Obligation Bonds, Series C,
6.500%, 07/01/2004................................. 11,404,880
10,000,000 Hawaii State General Obligation Bonds, Series CS,
(MBIA),
5.000%, 04/01/2007................................. 10,640,620
10,000,000 Honolulu, Hawaii, City & County General Obligation
Refunding Bonds, Series C, (FGIC),
5.500%, 11/01/2006................................. 10,991,000
10,000,000 Jacksonville, Florida, Electric Authority Refunding
Revenue Bonds, St. Johns River, Issue 2-15 5.500%,
10/01/2006......................................... 11,004,240
10,000,000 Lower Colorado River Authority of Texas, Refunding
Revenue Bonds, 6th Series, 5.000%, 01/01/2009...... 10,560,360
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- -------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$10,000,000 Maryland State & Local Facilities, Public
Improvements Correctional Facilities,
3rd Series,
5.700%, 10/15/2006................................ $ 11,028,310
10,000,000 Massachusetts State Public Improvements, General
Obligation Bonds,
Series C, (MBIA),
5.625%, 08/01/2011................................ 11,074,240
10,000,000 New Jersey State, Transportation Trust Fund
Revenue Bonds, Transportation System,
Series A, (AMBAC),
5.250%, 06/15/2008................................ 10,801,800
10,000,000 New Jersey State, Transportation Trust Fund
Revenue Bonds, Transportation System,
Series A, (AMBAC),
5.125%, 06/15/2007................................ 10,781,420
10,000,000 New York City, New York, Municipal Assistance
Corp., Series G,
6.000%, 07/01/2006................................ 11,306,960
10,000,000 New York State Power Authority & General Purpose
Refunding Revenue Bonds, Series A, 5.000%,
02/15/2007........................................ 10,653,970
10,000,000 Ocean County, New Jersey, Utilities Authority
Wastewater Revenue Bonds, 5.000%, 01/01/2009...... 10,694,690
10,000,000 Ohio State Public Facilities Commission Revenue
Bonds, Series II-B, (MBIA), 5.000%, 11/01/2007.... 10,586,100
10,000,000 Pennsylvania State General Obligation Refunding
Revenue Bonds, (AMBAC), 5.125%, 09/15/2006........ 10,763,850
10,000,000 Utah State General Obligation Bonds, Series A,
5.000%, 07/01/2007................................ 10,747,050
10,000,000 Wisconsin State Refunding General Obligation
Bonds, Series 3,
4.875%, 11/01/2005................................ 10,576,150
-------------
270,779,340
-------------
TAX-EXEMPT SECURITIES -- BACKED BY
LETTERS OF CREDIT -- 3.59%
RABOBANK NEDERLAND
10,400,000 Illinois Health Facilities Authority Revenue
Bonds, Central Dupage Healthcorp,
4.100%, 11/01/2020................................ 10,400,000
-------------
</TABLE>
See Notes to Financial Statements
12
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERMEDIATE-TERM TAX-EXEMPT FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<C> <S> <C>
OTHER INVESTMENTS -- 1.84%
100 Nuveen Tax-Exempt Money Market Fund................. $ 100
5,327,100 Shearson Tax-Exempt Municipal Fund.................. 5,327,100
------------
5,327,200
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $272,386,867*).................... 98.88% $286,506,540
OTHER ASSETS & LIABILITIES (NET).......................... 1.12 3,241,749
------ ------------
NET ASSETS................................................ 100.00% $289,748,289
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes
+ Variable rate demand bonds and notes are payable upon not more than seven
business days notice.
AMBAC -- American Municipal Bond Assurance Corp.
FGIC -- Financial Guaranty Insurance Corp.
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Assoc.
Note:
These municipal securities meet the three highest ratings assigned by Moody's
Investors Services, Inc. or Standard and Poor's Corporation or, where not
rated, are determined by the Investment Adviser, under the supervision of the
Board of Directors, to be of comparable quality at the time of purchase to
rated instruments that may be acquired by the Fund.
At September 30, 1998, approximately, 4% 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, 1998, approximately, 11% of the net assets are invested in
each of the Georgia, Florida and New Jersey municipal securities. Economic
changes affecting the state and certain of its public bodies and
municipalities may affect the ability of issuers to pay the required
principal and interest payments of the municipal securities.
See Notes to Financial Statements
13
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
NEW YORK INTERMEDIATE-TERM TAX-EXEMPT FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 93.23%
$ 3,000,000 Hempstead, New York, General Obligation Bonds,
(AMBAC), 5.000%, 02/15/2010......................... $ 3,153,387
10,000,000 Long Island Power Authority, New York, Electric
Systems Revenue Bonds, Series A, (AMBAC),
5.500%, 12/01/2009.................................. 11,083,000
5,000,000 Metropolitan Transportation Authority of New York,
Dedicated Tax Fund Revenue Bonds, Series A, (MBIA),
5.300%, 04/01/2010.................................. 5,372,970
6,000,000 Metropolitan Transportation Authority of New York,
Transportation Facilities Revenue Bonds, Series M,
(FGIC),
5.500%, 07/01/2008.................................. 6,618,510
5,000,000 Monroe County, New York, Public Improvement
Refunding General Obligation Bonds, Series A,
5.500%, 03/01/2006.................................. 5,483,935
6,000,000 Municipal Assistance Corp., City of New York, Series
E, 6.000%, 07/01/2005............................... 6,714,852
10,000,000 Municipal Assistance Corp., City of New York, Series
G, 6.000%, 07/01/2007............................... 11,400,600
5,000,000 Nassau County, New York, General Obligation Bonds,
Series Z, (FGIC),
4.750%, 09/01/2006.................................. 5,238,405
10,000,000 New York City, New York, City Transitional Finance
Authority, Future Tax Revenue Bonds, Series A,
5.250%, 08/15/2009.................................. 10,808,980
5,000,000 New York City, New York, General Obligation Bonds,
Series A,
5.250%, 08/01/2008.................................. 5,331,950
5,000,000 New York State Dormitory Authority, State University
Educational Facility Revenue Bonds, Series B,
5.500%, 05/15/2008.................................. 5,489,250
5,000,000 New York State Dormitory Authority, Cornell
University Revenue Bonds, 5.125%, 07/01/2006........ 5,394,025
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 5,000,000 New York State Environmental Facilities Corp.,
Pollution Control Revenue Bonds, State Water
Revolving Fund, Series E, (MBIA),
5.500%, 06/15/2007................................. $ 5,519,530
4,000,000 New York State Local Government Assistance Corp.
Revenue Bonds, Series A,
5.400%, 04/01/2005................................. 4,325,000
10,000,000 New York State Power Authority & General Purpose
Revenue Bonds, Series A,
5.000%, 02/15/2007................................. 10,653,970
5,000,000 New York State Thruway Authority General Revenue
Bonds, Series E, (MBIA),
5.500%, 01/01/2006................................. 5,461,220
4,450,000 New York State Thruway Authority Highway & Bridge
Revenue Bonds, Series B, (MBIA),
5.750%, 04/01/2006................................. 4,941,338
5,000,000 Port Authority of New York & New Jersey Revenue
Bonds, 4.250%, 12/01/2005.......................... 5,083,255
10,000,000 Puerto Rico Telephone Authority Revenue Bonds,
Reserve 1, (AMBAC),
5.050%, 01/01/2004................................. 10,614,030
10,000,000 Triborough Bridge & Tunnel Authority, New York,
Revenue and General Purpose Bonds, Series A,
5.000%, 01/01/2008................................. 10,670,720
------------
139,358,927
------------
TAX-EXEMPT SECURITIES -- BACKED BY LETTERS OF CREDIT -- 3.01%
MORGAN GUARANTY TRUST
---------------------
4,500,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, New
York State Electric & Gas, Series B,
4.100%, 02/01/2029+................................ 4,500,000
------------
</TABLE>
See Notes to Financial Statements
14
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
NEW YORK INTERMEDIATE-TERM TAX-EXEMPT FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<C> <S> <C>
OTHER INVESTMENTS -- 0.71%
1,057,900 Shearson New York Tax-Exempt Money Fund............. $ 1,057,900
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $139,203,188*).................... 96.95% $144,916,827
OTHER ASSETS & LIABILITIES (NET).......................... 3.05 4,565,003
------ ------------
NET ASSETS................................................ 100.00% $149,481,830
====== ============
</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, 1998, approximately, 3% 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, 1998, approximately, 89% of the net assets are invested in
New York municipal securities. Economic changes affecting the state and
certain of its public bodies and municipalities may affect the ability of
issuers to pay the required principal and interest payments of the municipal
securities.
See Notes to Financial Statements
15
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
LONG-TERM TAX-EXEMPT FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 100.71%
$6,000,000 California State Department of Water Resources,
Central Valley Project Revenue Bonds, Series Q,
(MBIA),
5.375%, 12/01/2027.................................. $ 6,247,536
5,000,000 Clark County, Nevada, School District Building &
Renovation General Obligation Bonds, Series B,
(FGIC),
5.250%, 06/15/2017.................................. 5,160,845
6,000,000 East Bay California Municipal Utility Distribution
Water System Revenue Bonds, (FGIC),
5.000%, 06/01/2026.................................. 6,031,584
6,000,000 Florida State Board of Education Capital Outlay,
Series A,
5.000%, 06/01/2027.................................. 6,017,802
6,000,000 Florida State Turnpike Authority Revenue Bonds,
Series B, (FGIC),
5.000%, 07/01/2027.................................. 6,000,000
6,000,000 Fulton County, Georgia, Water & Sewer Revenue Bonds,
(FGIC),
4.750%, 01/01/2028.................................. 5,842,272
4,000,000 Gulf Coast Waste Disposal Authority, Texas,
Pollution Control Refunding Revenue Bonds, Exxon
Project,
4.100%, 06/01/2020+................................. 4,000,000
6,000,000 Intermountain Power Agency, Utah, Power Supply
Refunding Revenue Bonds, Series D,
5.000%, 07/01/2021.................................. 5,983,368
6,000,000 Louisville & Jefferson County, Kentucky,
Metropolitan Sewer District Revenue Bonds, Sewer &
Drain Systems, Series A, (FGIC),
4.750%, 05/15/2028.................................. 5,859,780
6,000,000 Massachusetts Bay Transportation Authority,
Massachusetts General Transportation System Revenue
Bonds, Series A, (MBIA),
4.500%, 03/01/2026.................................. 5,691,876
6,000,000 Massachusetts Bay Transportation Authority,
Massachusetts General Transportation System
Refunding Revenue Bonds, Series C,
5.000%, 03/01/2024.................................. 6,016,950
6,000,000 Massachusetts State Water Resource Authority, Series
B, (MBIA),
5.000%, 12/01/2025.................................. 6,017,352
6,000,000 Metropolitan Pier & Exposition Authority, Illinois,
State Tax Refunding Revenue Bonds, McCormick Place
Exposition Project, Series A,
5.250%, 06/15/2027.................................. 6,136,962
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$6,000,000 Metropolitan Transportation Authority, New York,
Commuter Facilities Revenue Bonds, Series B, (FGIC),
4.750%, 07/01/2026.................................. $ 5,890,620
6,000,000 Michigan State Hospital Finance Authority Refunding
Revenue Bonds, Henry Ford Health System, Series A,
5.250%, 11/15/2025.................................. 6,113,130
6,000,000 New Jersey State Transportation Fund Revenue Bonds,
Series B,
5.250%, 06/15/2016.................................. 6,264,468
6,000,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer System Refunding Revenue
Bonds, Series A, (AMBAC),
5.125%, 06/15/2021.................................. 6,119,154
6,000,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer System Revenue Bonds,
Series B, (MBIA),
5.500%, 06/15/2027.................................. 6,331,962
6,000,000 New York City, New York, Transitional Financing
Authority Revenue Bonds, Future Tax Secured, Series
C,
4.750%, 05/01/2023.................................. 5,914,128
6,000,000 New York State Dormitory Authority, New York &
Presbyterian Hospital Revenue Bonds, FHA Insured,
(AMBAC),
4.750%, 08/01/2014.................................. 6,031,014
6,000,000 New York State Thruway Authority, General Refunding
Revenue Bonds, Series E,
4.750%, 01/01/2019.................................. 5,884,800
6,000,000 North Carolina State, General Obligation Bonds,
Series A,
4.750%, 04/01/2014.................................. 6,139,146
6,000,000 Port Authority of New York & New Jersey, Revenue
Bonds, Series 104, (AMBAC),
5.200%, 07/15/2021.................................. 6,186,846
6,000,000 Port Seattle, Washington, Revenue Bonds, Series A,
(FGIC),
5.500%, 10/01/2022.................................. 6,306,210
6,000,000 Puerto Rico Commonwealth Infrastructure Financing
Authority, Series A, (AMBAC),
5.000%, 07/01/2028.................................. 6,045,000
5,720,000 Purdue University, Indiana, University Revenue
Bonds, Student Fee, Series E,
3.550%, 07/01/2011+................................. 5,720,000
</TABLE>
See Notes to Financial Statements
16
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
LONG-TERM TAX-EXEMPT FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- ------------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$6,000,000 Utah State Board Regents, University of Utah
Auxiliary & Campus Refunding Revenue Bonds, Series
A, (MBIA),
4.750%, 04/01/2025.................................. $ 5,919,834
6,000,000 Valdez, Alaska, Marine Terminal Refunding Revenue
Bonds, BP Pipeline, Inc. Project, Series B,
5.500%, 10/01/2028.................................. 6,139,842
6,000,000 Wisconsin State Transportation Refunding Revenue
Bonds, Series B,
5.500%, 07/01/2022.................................. 6,125,670
------------
172,138,151
------------
TAX-EXEMPT SECURITIES -- BACKED BY LETTERS OF CREDIT -- 6.20%
MORGAN GUARANTY TRUST
---------------------
4,600,000 New York City, New York, General Obligation Bonds,
Subseries E2,
4.100%, 08/01/2020+................................. 4,600,000
SUMITOMO BANK
-------------
6,000,000 Burke County, Georgia, Development Authority
Pollution Control Revenue Bonds, Georgia Power
Company, Series 2,
4.150%, 04/01/2025+................................. 6,000,000
------------
10,600,000
------------
<CAPTION>
SHARES
----------
<C> <S> <C>
OTHER INVESTMENTS -- 1.82%
1,753,300 Dreyfus Tax-Exempt Cash Management Fund............. 1,753,300
1,350,100 Shearson Tax-Exempt Municipal Fund.................. 1,350,100
------------
3,103,400
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $176,662,140*).................... 108.73% $185,841,551
OTHER ASSETS & LIABILITIES (NET).......................... (8.73) (14,915,784)
------ ------------
NET ASSETS................................................ 100.00% $170,925,767
====== ============
</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, 1998, 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, 1998, approximately, 27% and 10% of the net assets are
invested in New York and Massachusetts municipal securities, respectively.
Economic changes affecting the state and certain of its public bodies and
municipalities may affect the ability of issuers to pay the required
principal and interest payments of the municipal securities.
See Notes to Financial Statements
17
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- 79.99%
$ 125,000 Anaheim, California, Electric Refunding Revenue
Bonds, (AMBAC),
4.750%, 10/01/2002................................... $ 130,409
200,000 Antelope Valley, East Kern, California, Water Agency
Refunding General Obligation Bonds, (AMBAC),
4.500%, 08/01/2001................................... 205,129
200,000 Bakersfield, California, City School District,
Refunding General Obligation Bonds, (MBIA),
5.000%, 08/01/2005................................... 213,203
595,000 Berkeley, California, University School District,
(FGIC),
4.375%, 08/01/2006................................... 610,462
250,000 Burbank, California, University School District,
(FGIC),
4.100%, 08/01/2003................................... 254,492
135,000 California Educational Facilities Authority, Santa
Clara University Refunding Revenue Bonds, (MBIA),
4.900%, 09/01/2006................................... 143,834
150,000 California Educational Facilities Authority, Stanford
University Refunding Revenue Bonds, Series J,
5.900%, 11/01/2003................................... 159,559
150,000 California Educational Facilities Authority, St.
Mary's College Refunding Revenue Bonds,
4.800%, 10/01/2002................................... 156,540
225,000 California Health Facilities Financing Authority
Revenue Bonds, Cedars- Sinai Medical Center, Series
A, (MBIA),
4.250%, 08/01/2003................................... 230,625
500,000 California Health Facilities Financing Authority
Revenue Bonds, St. Joseph Health System, Series A,
3.750%, 07/01/2013+.................................. 500,000
200,000 California Industrial Urban Development Agency,
Refunding Tax Allocation Bonds, (MBIA),
4.300%, 05/01/2002................................... 204,395
275,000 California State Department of Transportation,
Refunding Certificates of Participation, Series A,
(MBIA),
4.400%, 03/01/2004................................... 283,958
250,000 California State Department of Water Resources,
Central Valley Project Refunding Revenue Bonds,
Series L,
8.000%, 12/01/2001................................... 283,213
</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 Revenue Bonds, Series S,
4.250%, 12/01/1999................................... $ 379,772
300,000 California State, General
Obligation Bonds,
6.000%, 09/01/2001................................... 320,805
750,000 California State, General
Obligation Bonds,
6.100%, 11/01/2001................................... 802,688
230,000 California State, General
Obligation Bonds,
6.700%, 02/01/2004................................... 262,165
750,000 California State, General
Obligation Bonds,
6.250%, 04/01/2008................................... 876,983
250,000 California State Public Works Board, Lease Refunding
Revenue Bonds, Department of Corrections, Series D,
(MBIA),
4.850%, 09/01/2008................................... 265,567
500,000 California State Public Works Bonds, Lease Refunding
Revenue Bonds, Series A,
5.600%, 10/01/2001................................... 528,659
300,000 California State University, Institutional Lease
Refunding Revenue Bonds, (AMBAC),
5.500%, 06/01/2003................................... 323,213
750,000 Castaic Lake Water Agency, California, Certificates
of Participation, (MBIA),
7.125%, 08/01/2016................................... 812,527
250,000 Central Coast Water Authority, California Refunding
Revenue Bonds, State Water Project Regional
Facilities, Series A, (AMBAC),
4.375%, 10/01/2001................................... 255,862
315,000 Central Coast Water Authority, California Refunding
Revenue Bonds, State Water Project Regional
Facilities, Series A, (AMBAC),
6.000%, 10/01/2005................................... 355,608
550,000 Central Valley School District Financing Authority,
California School District General Obligation
Refunding Revenue Bonds, Series A, (MBIA),
5.850%, 08/01/2004................................... 609,095
545,000 Chino Basin California Regional Financing Authority
Revenue Bonds, Municipal Water District Sewer System
Project, (AMBAC),
7.000%, 08/01/2005................................... 645,848
</TABLE>
See Notes to Financial Statements
18
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 350,000 Contra Costa, California, Certificates of
Participation, Capital Projects Program, (AMBAC),
4.625%, 02/01/2007................................... $ 364,481
550,000 Contra Costa, California, Transportation Authority
Sales Tax Revenue Bonds, Series A, (FGIC),
6.000%, 03/01/2007................................... 626,690
350,000 Contra Costa, California, Transportation Authority
Sales Tax Revenue Bonds, Series A, (MBIA),
5.100%, 11/01/2008................................... 379,265
750,000 East Bay, California, Regional Park Refunding Revenue
Bonds,
5.000%, 09/01/2007................................... 804,031
250,000 Escondido, California, School District, Series A,
(FGIC),
5.000%, 09/01/2008................................... 268,601
400,000 Fairfield, California, Water Refunding Revenue Bonds,
(AMBAC),
4.700%, 04/01/2005................................... 418,458
155,000 Fresno, California, Sewer Revenue Bonds, Series A-1,
(AMBAC),
4.800%, 09/01/2006................................... 164,096
695,000 Golden West Schools Financing Authority, California
School District Refunding Revenue General Obligation
Bonds, Series A, (MBIA),
6.200%, 02/01/2003................................... 761,644
850,000 Irvine Ranch, California, Water District Revenue
Bonds,
3.800%, 10/01/2000+.................................. 850,000
330,000 Los Angeles, California, Community Redevelopment
Agency Refunding Tax Allocation Bonds, (MBIA),
7.000%, 07/01/2015................................... 345,726
200,000 Los Angeles, California, Convention & Exhibition
Center Authority, Refunding Certificates of
Participation, (AMBAC),
6.600%, 08/15/1999................................... 205,759
500,000 Los Angeles, California, Department of Airports,
Airport Refunding Revenue Bonds, Series A, (FGIC),
6.000%, 05/15/2005................................... 561,377
250,000 Los Angeles, California, Department of Water & Power,
Electrical Plant Refunding Revenue Bonds, (AMBAC),
4.600%, 08/15/2006................................... 258,472
305,000 Los Angeles, California, Harbor Department Refunding
Revenue Bonds, Series C,
4.875%, 11/01/2002................................... 319,824
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 250,000 Los Angeles, California, Municipal Improvement
Corporation, Equipment Real Estate Property,
Certificates of Participation, (AMBAC),
4.500%, 12/01/2001................................... $ 257,655
250,000 Los Angeles, California, Municipal Improvement
Corporation, Sanitation Equipment Charge Revenue
Bonds, Series A, (FSA),
5.000%, 02/01/2001................................... 258,160
150,000 Los Angeles, California, Municipal Improvement
Corporation, Sanitation Equipment Charge Revenue
Bonds, Series A, (FSA),
4.875%, 02/01/2006................................... 158,414
400,000 Los Angeles, California, Municipal Improvement
Corporation, Sanitation Equipment Charge Revenue
Bonds, Series B, (AMBAC),
4.300%, 02/01/2004................................... 410,922
750,000 Los Angeles, California, Municipal Improvement
Corporation, Sanitation Equipment Charge Revenue
Bonds, Series B, (AMBAC),
4.600%, 02/01/2006................................... 779,296
500,000 Los Angeles, California, School District, Series A ,
(FGIC),
4.400%, 07/01/2003................................... 515,542
225,000 Los Angeles, California, State Building Authority
Lease Refunding Revenue Bonds, California Department
of General Services, Series A,
4.400%, 05/01/1999................................... 226,380
400,000 Los Angeles, California, State Building Authority
Lease Refunding Revenue Bonds, California Department
of General Services, Series A,
5.600%, 05/01/2004................................... 431,325
250,000 Los Angeles, California, Wastewater Systems Revenue
Bonds, Series A, (FGIC),
6.000%, 02/01/2003................................... 272,512
200,000 Los Angeles County, California, Public Works
Financing Authority, Lease Refunding Revenue Bonds,
Series A, (MBIA),
6.000%, 09/01/2003................................... 220,699
300,000 Los Angeles County, California, Public Works
Financing Authority, Lease Refunding Revenue Bonds,
Series A, (MBIA),
6.000%, 09/01/2004................................... 334,177
</TABLE>
See Notes to Financial Statements
19
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 655,000 Los Angeles County, California, Public Works
Financing Authority, Refunding Revenue Bonds,
Regional Park & Open Space District, Series A,
5.000%, 10/01/2004................................... $ 695,750
300,000 Los Angeles County, California, Public Works
Financing Authority, Refunding Revenue Bonds,
Regional Park & Open Space District, Series A,
5.250%, 10/01/2005................................... 324,992
230,000 Los Angeles County, California, SCHS Regionalized
Business Services Certificates of Participation,
Local Educational Agencies, Series B, (MBIA),
4.400%, 07/01/2003................................... 236,643
100,000 Metropolitan Water District of Southern California,
Refunding Revenue General Obligation Bonds, Series
A1,
5.000%, 03/01/2002................................... 104,333
500,000 Metropolitan Water District of Southern California,
Refunding Revenue General Obligation Bonds, Series A,
5.250%, 03/01/2008................................... 549,459
400,000 Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series A,
7.000%, 07/01/2002................................... 449,105
250,000 Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series A,
4.250%, 07/01/2003................................... 256,150
200,000 Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B, (MBIA),
5.250%, 07/01/2007................................... 218,605
200,000 Modesto, California, Irrigation District Financing
Authority, Refunding Revenue Bonds, Series A, (MBIA),
4.850%, 10/01/2001................................... 207,171
250,000 Modesto, California, Irrigation District Financing
Authority, Refunding Revenue Bonds, Series A, (MBIA),
5.450%, 10/01/2007................................... 275,590
350,000 MSR Public Power Agency, California, San Juan Project
Refunding Revenue Bonds, Series F, (AMBAC),
5.650%, 07/01/2003................................... 378,840
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$1,000,000 Northern California Power Agency, Public Power
Refunding Revenue Bonds, Geothermal Project,
Series A, (AMBAC),
4.750%, 07/01/2003................................... $ 1,048,437
250,000 Northern California Power Agency, Public Power
Refunding Revenue Bonds, Geothermal Project,
Series A, (AMBAC),
5.500%, 07/01/2005................................... 273,841
250,000 Northern California Power Agency, Public Power
Refunding Revenue Bonds, Geothermal Project,
Series A, (AMBAC),
5.600%, 07/01/2006................................... 277,653
500,000 Northern California Transmission Refunding Revenue
Bonds, Ore Transportation Project, Series A, (MBIA),
7.000%, 05/01/2000................................... 527,227
250,000 Novato, California, Refunding General Obligation
Bonds, Series A, (MBIA),
6.250%, 08/01/2007................................... 289,892
175,000 Orange County, California, Local Transportation
Authority Sales Tax Revenue Bonds, 1st Series,
5.600%, 02/15/2002................................... 185,565
300,000 Orange County, California, Local Transportation
Authority Sales Tax Revenue Bonds, 2nd Series,
(FGIC),
4.700%, 02/15/2005................................... 313,763
100,000 Orange County, California, Municipal Water District,
Water Facilities Corporation, Refunding Certificates
of Participation, (MBIA),
4.800%, 07/01/2003................................... 104,615
500,000 Riverside County, California, Asset Leasing
Corporation Leasehold Revenue Bonds, Riverside County
Hospital Project, Series A,
7.400%, 06/01/1999................................... 523,591
700,000 Sacramento, California, City Financing Authority
General Obligation Revenue Bonds,
6.800%, 11/01/2020................................... 779,788
255,000 Sacramento, California, City Financing Authority
Lease Refunding Revenue Bonds, Series A, (AMBAC),
5.050%, 11/01/2006................................... 273,698
250,000 Sacramento, California, Municipal Utilities District
Electric Refunding Revenue Bonds, Series Z, (FGIC),
6.000%, 07/01/2001................................... 265,642
</TABLE>
See Notes to Financial Statements
20
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 200,000 Sacramento County, California, Public Facilities
Project, Refunding Certificates of Participation,
(MBIA),
4.700%, 02/01/2003................................... $ 208,098
250,000 Sacramento County, California, Public Facilities
Project, Refunding Certificates of Participation,
(MBIA),
4.875%, 02/01/2005................................... 263,772
400,000 Sacramento County, California, Sanitation District
Financing Authority Revenue Bonds,
5.500%, 12/01/2005................................... 438,883
300,000 San Bernardino County, California, Certificates of
Participation, Medical Center Financing Project,
(MBIA),
5.500%, 08/01/2007................................... 331,321
500,000 San Bernardino County, California, Certificates of
Participation, Medical Center Financing Project,
Series A, (MBIA),
5.750%, 08/01/2007................................... 565,357
255,000 San Bernardino County, California, Transportation
Authority Sales Tax Refunding Revenue Bonds,
Series A, (MBIA),
4.625%, 03/01/2005................................... 265,477
315,000 San Bernardino County, California, Transportation
Authority Sales Tax Refunding Revenue Bonds,
Series A, (MBIA),
5.000%, 03/01/2000................................... 321,742
200,000 San Bernardino County, California, Transportation
Authority Sales Tax Refunding Revenue Bonds,
Series A, (FSA),
4.500%, 03/01/2006................................... 206,619
175,000 San Diego, California, Open Space Park Facilities
District, Refunding General Obligation Revenue Bonds,
5.500%, 01/01/2004................................... 190,949
300,000 San Diego, California, Public Facilities Financing
Authority, Sewer Revenue Bonds, Series B, (FGIC),
5.000%, 05/15/2008 321,775
250,000 San Diego, California, Public Safety Communications
Project, General Obligation Bonds,
6.500%, 07/15/2008 297,303
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 215,000 San Diego, California, Regional Transportation
Communication, Sales Tax Revenue Bonds, 2nd Series,
Series A, (FGIC),
6.250%, 04/01/2003................................... $ 237,361
150,000 San Diego County, California, Regional Transportation
Communication, Sales Tax Refunding Revenue Bonds, 2nd
Series, Series A, (FGIC),
5.250%, 04/01/2006................................... 162,252
200,000 San Diego County, California, Regional Transportation
Communication, Sales Tax Refunding Revenue Bonds, 2nd
Series, Series A, (FGIC),
5.500%, 04/01/2004................................... 216,843
300,000 San Diego County, California, Regional Transportation
Communication, Sales Tax Revenue Bonds, 2nd Series,
Series A, (FGIC),
5.000%, 04/01/1999................................... 302,702
325,000 San Francisco, California, City & County Public
Utilities Communication, Water Refunding Revenue
Bonds, Series A,
6.500%, 11/01/2004................................... 371,698
680,000 San Francisco, California, City & County Refunding
Bonds, Series 1, (FGIC),
4.500%, 06/15/2005................................... 704,656
225,000 San Francisco, California, City & County School
District Facilities Improvements Project, Series C,
(FGIC),
6.000%, 06/15/1999................................... 229,301
200,000 San Francisco, California, State Building Authority
Lease Revenue Bonds, San Francisco Civic Center
Complex, Series A, (AMBAC),
4.125%, 12/01/2000................................... 202,854
100,000 San Jose, California, Airport Refunding Revenue
Bonds, (FGIC),
5.500%, 03/01/2002................................... 105,959
200,000 San Jose, California, Redevelopment Agency, Tax
Allocation Bonds, Merged Area Redevelopment Project,
(MBIA),
4.750%, 08/01/2003................................... 209,302
325,000 San Jose, California, Redevelopment Agency, Tax
Allocation Bonds, Merged Area Redevelopment Project,
(MBIA),
5.375%, 08/01/2004................................... 351,819
</TABLE>
See Notes to Financial Statements
21
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA TAX-EXEMPT INCOME FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 500,000 San Jose, California, Redevelopment Agency, Tax
Allocation Bonds, Merged Area Redevelopment Project,
(AMBAC),
5.000%, 08/01/07..................................... $ 533,813
250,000 San Jose, California, Santa Clara County School
District, Series A, (FGIC),
4.400%, 08/01/2005................................... 257,729
300,000 San Mateo County, California, JT Powers Authority
Lease Revenue Bonds, San Mateo Community Health Care
Center, Series A, (FSA),
5.600%, 07/15/2004................................... 327,981
500,000 San Mateo County, California, Transportation
Authority, Series A, (MBIA),
4.200%, 06/01/2004................................... 511,630
150,000 Santa Barbara County, California, Local
Transportation Authority, Sales Tax Revenue Bonds,
(FGIC),
4.900%, 04/01/2006................................... 158,348
300,000 Santa Clara County, California, Certificates of
Participation, Technology Projects, Series A,
5.000%, 05/15/2000................................... 306,655
500,000 Santa Clara County, California, Electric Facilities
Revenue Bonds, Series A, (MBIA),
6.250%, 07/01/2013................................... 544,980
100,000 Santa Clara County, California, Financing Authority
Refunding Lease Revenue Bonds, Series A, (AMBAC),
4.200%, 11/15/2002................................... 102,355
175,000 Santa Clara County, California, Financing Authority
Refunding Lease Revenue Bonds, Series A, (AMBAC),
4.300%, 11/15/2003................................... 180,432
285,000 Santa Clara County, California, Refunding
Certificates of Participation, Capital Project I,
(AMBAC),
6.200%, 10/01/2000................................... 299,815
500,000 Santa Clara County, California, Transportation
District Sales Tax Refunding Revenue Bonds, Series A,
4.500%, 06/01/2006................................... 520,371
250,000 Santa Monica, California, Malibu University School
District, Public Schools Facilities Reconstruction
Project,
5.500%, 08/01/2015................................... 274,402
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- (CONTINUED)
$ 200,000 Southern California Public Power Authority, Refunding
Revenue Bonds, Palo Verde Project, Series A, (AMBAC),
5.500%, 07/01/2004................................... $ 217,624
300,000 University of California, Refunding Revenue Bonds,
Multiple Purpose Projects, Series A, (MBIA),
6.100%, 09/01/2000................................... 314,462
390,000 University of California, Refunding Revenue Bonds,
Multiple Purpose Projects, Series G, (FGIC),
4.500%, 09/01/2004................................... 405,598
600,000 University of California, Refunding Revenue Bonds,
Multiple Purpose Projects, Series F, (FGIC),
5.000%, 09/01/2008................................... 641,374
150,000 University of California, Refunding Revenue Bonds,
Series C, (AMBAC),
4.600%, 09/01/2005................................... 156,495
500,000 Ventura County, California, Community College
District, Revenue Certificates of Participation,
(AMBAC),
4.000%, 12/01/2002................................... 500,168
250,000 West & Central Basin Financing Authority, California
Refunding Revenue Bonds, (AMBAC),
5.500%, 08/01/2001................................... 262,754
250,000 West Basin, California, Municipal Water District,
Revenue Certificates of Participation, Series A,
(AMBAC),
3.875%, 08/01/2002................................... 252,568
100,000 West Basin, California, Municipal Water District,
Revenue Certificates of Participation, Series A,
(AMBAC),
4.000%, 08/01/2000................................... 101,091
-----------
41,945,155
-----------
TAX-EXEMPT SECURITIES -- ESCROWED IN U.S. GOVERNMENTS -- 18.36%
350,000 Alameda County, California, Correctional Facility
Improvements Certificates of Participation, (MBIA),
7.250%, 06/01/2013 (Prerefunded 12/01/2000).......... 384,590
500,000 California Health Facilities Financing Authority
Revenue Bonds, Pomona Valley Hospital Medical Center,
7.375%, 01/01/2014 (Prerefunded 01/01/2000).......... 534,014
</TABLE>
See Notes to Financial Statements
22
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (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)
$ 750,000 California State, General Obligation Bonds, (FGIC),
6.000%, 08/01/2019 (Prerefunded 08/01/2004).......... $ 849,326
500,000 California State, General Obligation Bonds,
5.900%, 04/01/2023 (Prerefunded 04/01/2003).......... 554,601
300,000 California State Public Works Board, Lease Refunding
Revenue Bonds, Secretary of State, Series A,
6.750%, 12/01/2012 (Prerefunded 12/01/2002).......... 341,561
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).......... 293,744
200,000 California State Public Works Board, Lease Refunding
Revenue Bonds, Various California State University
Projects, Series A, (AMBAC),
6.400%, 12/01/2016 (Prerefunded 12/01/2002).......... 224,936
200,000 California State Public Works Board, Lease Refunding
Revenue Bonds, Various University of California
Projects, Series A,
6.600%, 12/01/2022 (Prerefunded 12/01/2002).......... 226,555
500,000 Central Coast Water Authority, California Refunding
Revenue Bonds, State Water Project Regional
Facilities, Series A, (AMBAC),
6.600%, 10/01/2022 (Prerefunded 10/01/2002).......... 564,122
295,000 Cotati-Rohnert Park, California University School
District General Obligation, (FGIC),
6.000%, 08/01/2014
(Prerefunded 08/01/99)............................... 307,491
250,000 Cupertino, California, Certificates of Participation,
Open Space Acquisition Project,
7.125%, 04/01/2016 (Prerefunded 04/01/2001).......... 278,073
250,000 East Bay, California, Municipal Utilities District
Wastewater Treatment System Revenue Bonds, (AMBAC),
6.375%, 06/01/2021 (Prerefunded 12/01/2001).......... 275,892
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<C> <S> <C>
TAX-EXEMPT SECURITIES -- ESCROWED IN U.S. GOVERNMENTS --
(CONTINUED)
$ 125,000 Los Angeles, California, Harbor Department Revenue
Bonds, Series A,
6.500%, 08/01/2025 (Prerefunded 08/01/2002).......... $ 140,149
225,000 Los Angeles, California, Wastewater Systems Revenue
Bonds, Series D, (MBIA),
6.700%, 12/01/2021 (Prerefunded 12/01/2000).......... 244,670
175,000 Los Angeles County, California, Transportation
Communications Sales Tax Revenue Bonds, Series A,
6.750%, 07/01/2019 (Prerefunded 07/01/2002).......... 197,370
390,000 Los Angeles County, California, Transportation
Communications Sales Tax Revenue Bonds, Series A,
6.750%, 07/01/2020 (Prerefunded 07/01/2001).......... 430,267
300,000 Madera, California, Sewer Improvements, Certificates
of Participation,
7.375%, 05/01/2020 (Prerefunded 05/01/1999).......... 313,102
525,000 Northern California Transmission Refunding Revenue
Bonds, Ore Transportation Project, Series A, (MBIA),
7.000%, 05/01/2024 (Prerefunded 05/01/2000).......... 561,388
750,000 Richmond, California, Redevelopment Authority Tax
Allocation Refunding Revenue Bonds, Harbor
Redevelopment Project, (FSA),
7.000%, 07/01/2009 (Prerefunded 07/01/2002).......... 852,400
460,000 San Bernardino County, California, School Health Care
System Revenue Bonds, Sisters of Charity, Series A,
7.000%, 07/01/2021 (Prerefunded 07/01/2001).......... 510,359
500,000 San Francisco, California, Bay Area Rapid
Transportation District, Sales Tax Revenue Bonds,
(FGIC),
5.500%, 07/01/2020 (Prerefunded 07/01/2005).......... 553,739
650,000 San Joaquin Hills, California, Transportation
Corridor Agency, Toll Road Revenue Bonds,
6.750%, 01/01/2032 (Prerefunded 01/01/2003).......... 738,979
</TABLE>
See Notes to Financial Statements
23
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (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)
$ 235,000 Southern California Public Power Authority, Power
Project Revenue Bonds,
7.000%, 07/01/2009 (Prerefunded 07/01/2000).......... $ 253,733
-----------
9,631,061
-----------
<CAPTION>
SHARES
----------
<C> <S> <C>
OTHER INVESTMENTS -- 1.58%
415,633 Federated California Money Fund...................... 415,633
411,127 Provident California Money Fund...................... 411,127
-----------
826,760
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $51,131,141*)...................... 99.93% $52,402,976
OTHER ASSETS & LIABILITIES (NET)........................... 0.07 35,849
------ -----------
NET ASSETS................................................. 100.00% $52,438,825
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes
+ Variable rate demand bonds and notes are payable upon not more than seven
business days notice.
AMBAC--American Municipal Bond Assurance Corp.
FGIC --Financial Guaranty Insurance Corp.
FSA --Financial Security Assurance
MBIA --Municipal Bond Insurance Assoc.
Note:
These municipal securities meet the three highest ratings assigned by Moody's
Investors Services, Inc. or Standard and Poor's Corporation or, where not
rated, are determined by the Investment Adviser, under the supervision of the
Board of Directors, to be of comparable quality at the time of purchase to
rated instruments that may be acquired by the Fund.
At September 30, 1998, approximately, 18% 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, 1998, approximately, 100% 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
24
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
NEW YORK TAX-EXEMPT MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- 46.85%
$ 9,000,000 Long Island Power Authority, New York, Electric
Systems Commercial Paper,
3.350%, 12/14/1998................................. $ 9,000,000
4,000,000 Monroe County, New York, General Obligation
Unlimited Revenue Bonds,
3.300%, 10/06/1998................................. 4,000,000
2,933,000 Nassau County, New York, Industrial Development
Agency, Civic Facility Revenue Bonds, Cold Spring
Harbor Lab Project,
4.000%, 05/18/1999................................. 2,945,518
1,100,000 New York City, New York, City Municipal Water
Financing Authority, Water & Sewer Systems
Commercial Paper, Series 5B,
3.400%, 01/13/1999................................. 1,100,000
4,100,000 New York City, New York, City Municipal Water
Financing Authority, Water & Sewer Systems Revenue
Bonds, Series C, (FGIC),
4.100%, 06/15/2022................................. 4,100,000
2,200,000 New York City, New York, Industrial Development
Agency, Civic Facility Revenue Bonds, National
Audubon Society Project,
4.100%, 12/01/2014+................................ 2,200,000
9,000,000 New York City, New York, Triborough Bridge & Tunnel
Authority, Special Obligation Revenue Bonds,
(FGIC),
3.350%, 01/01/2024................................. 9,000,000
2,000,000 New York State Dormitory Authority, Commercial
Paper,
3.500%, 12/10/1998................................. 2,000,000
3,000,000 New York State Dormitory Authority, Columbia
University Commercial Paper,
3.300%, 11/01/1998................................. 3,000,000
3,600,000 New York State Dormitory Authority, Metropolitan
Museum of Art Revenue Bonds, Series A,
3.300%, 07/01/2015+................................ 3,600,000
10,700,000 New York State Dormitory Authority, Metropolitan
Museum of Art Revenue Bonds, Series A,
3.350%, 07/01/2014+................................ 10,700,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
TAX-EXEMPT CASH EQUIVALENT SECURITIES -- (CONTINUED)
$ 4,000,000 New York State Dormitory Authority, Sloan Kettering
Cancer Center,
3.450%, 12/10/1998................................. $ 4,000,000
1,300,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Orange
& Rockland Project, Series A, (FGIC),
3.300%, 10/01/2014+................................ 1,300,000
4,100,000 New York State Environmental Facilities, Commercial
Paper,
3.500%, 10/06/1998................................. 4,100,000
6,650,000 New York State Environmental Facilities, Commercial
Paper,
3.700%, 10/07/1998................................. 6,650,000
3,000,000 New York State Job Development State Guaranteed,
Series D1-16,
3.350%, 03/01/2000+................................ 3,000,000
26,000,000 New York State Power Authority & General Purpose
Commercial Paper,
3.350%, 12/01/1998................................. 26,000,000
5,000,000 New York State Thruway Authority Highway & Bridge
Revenue Bonds, Series A, (AMBAC),
4.750%, 04/01/1999................................. 5,029,150
1,000,000 New York State, General Obligation Unlimited Bonds,
3.400%, 12/01/1998................................. 1,000,000
1,000,000 Puerto Rico Government Development Bank
2.900%, 10/01/1998................................. 1,000,000
1,700,000 Syracuse, New York, Industrial Development Agency
Civic Facilities Revenue Bonds, Syracuse University
Project,
4.100%, 03/01/2023+................................ 1,700,000
------------
105,424,668
------------
TAX-EXEMPT CASH EQUIVALENTS -- BACKED BY LETTERS OF CREDIT - 52.82%
BANKERS TRUST COMPANY
---------------------
1,000,000 Dutchess County, New York, Industrial Development
Agency Revenue Bonds, Toys R Us--NYTEX, Inc.
Project,
4.125%, 11/01/2019+................................ 1,000,000
</TABLE>
See Notes to Financial Statements
25
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
NEW YORK 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)
BANK OF NOVA SCOTIA
-------------------
$ 9,000,000 New York State Local Government Assistance
Corporation, Series B,
3.700%, 04/01/2025+................................ $ 9,000,000
1,700,000 Suffolk County, New York, Revenue Anticipation
Notes, ............................................
3.400%, 11/01/2002+................................ 1,700,000
BAYERISCHE LANDESBANK
---------------------
9,500,000 Municipal Assistance Corporation for the City of
New York, Subseries K2,
3.300%, 07/01/2008+................................ 9,500,000
BAYERISCHE LANDESBANK/MORGAN GUARANTY TRUST
8,635,000 New York State Job Development State Guaranteed,
Series C1,
3.300%, 03/01/2000+................................ 8,635,000
CHASE MANHATTAN BANK
--------------------
5,920,000 Babylon, New York, Industrial Development Agency
Refunding Revenue Bonds, Ogden Martin Project,
3.300%, 01/01/2019+................................ 5,920,000
5,000,000 New York State Dormitory Authority, Cornell
University Revenue Bonds, Series B,
3.500%, 12/10/1998................................. 5,000,000
5,000,000 New York State Dormitory Authority, Sloan Kettering
Cancer Center,
3.450%, 12/10/1998................................. 5,000,000
CREDIT LOCAL DE FRANCE
----------------------
2,000,000 New York City, New York, Housing Development
Corporate Mortgage Revenue Bonds, Parkgate Tower,
(MBIA),
3.550%, 12/01/2007+................................ 2,000,000
CS FIRST BOSTON
---------------
4,620,000 New York City, New York, City Treasures Cultural
Reserve, American Museum of National History
Revenue Bonds, Series A, (MBIA),
3.300%, 04/01/2021+................................ 4,620,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
$ 4,000,000 New York City, New York, City Treasures Cultural
Reserve, American Museum of National History
Revenue Bonds, Series B, (MBIA),
2.400%, 04/01/2021+................................ $ 4,000,000
DEUTSCHE BANK
-------------
6,000,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Central
Hudson Gas & Electric, Series B, (AMBAC),
3.800%, 11/01/2020+................................ 6,000,000
LANDESBANK HESSEN- THURINGEN
9,000,000 New York State Housing Finance Agency Revenue
Bonds, Normandie Court I Project,
3.300%, 05/15/2015+................................ 9,000,000
MORGAN GUARANTY TRUST
---------------------
5,000,000 Long Island Power Authority, New York, Electric
Systems, Commercial Paper,
3.350%, 01/15/1999................................. 5,000,000
4,100,000 Nassau County, New York, Industrial Development
Agency, Civic Facility Revenue Bonds, Cold Spring
Harbor Lab Project,
4.150%, 07/01/2019................................. 4,100,000
10,000,000 New York City, New York, City Health & Hospital
Systems Corporate Revenue Bonds, Series A,
3.350%, 02/15/2026+................................ 10,000,000
700,000 New York State Dormitory Authority, Cornell
University Revenue Bonds, Series B,
4.100%, 07/01/2025+................................ 700,000
15,000,000 New York State Power Authority & General Purpose
Revenue Bonds,
3.350%, 12/01/1998................................. 15,000,000
SOCIETE GENERAL
---------------
7,700,000 New York State Energy Research & Development
Authority, Pollution Control Revenue Bonds, Orange
& Rockland Utilities, Series A, (AMBAC),
3.300%, 08/01/2015+................................ 7,700,000
</TABLE>
See Notes to Financial Statements
26
<PAGE>
EXCELSIOR TAX-EXEMPT FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
NEW YORK 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)
UNION BANK OF SWITZERLAND/CITIBANK N.A.
$ 5,000,000 New York City, New York, General Obligation
Unlimited Bonds, Subseries B10,
3.250%, 08/15/2024+................................ $ 5,000,000
------------
118,875,000
------------
<CAPTION>
SHARES
------
<C> <S> <C>
OTHER INVESTMENTS -- 0.25%
558,300 Dreyfus New York Tax-Exempt Fund................... 558,300
2,400 Shearson New York Tax-Exempt Money Fund............ 2,400
------------
560,700
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $224,860,368*).................... 99.92% $224,860,368
OTHER ASSETS & LIABILITIES (NET).......................... 0.08 186,512
------ ------------
NET ASSETS................................................ 100.00% $225,046,880
====== ============
</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, 1998, approximately 53% 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, 1998, approximately, 99% 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
27
<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 seven 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, California Tax-Exempt Income Fund and New York Tax-Exempt Money 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. New York Tax-Exempt Money
Fund commenced operations on August 3, 1998. The financial statements for
Excelsior Funds, Inc. ("Excelsior Fund") are presented separately.
With regard to Tax-Exempt Money Fund and New York 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. Each of these Portfolios 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 Portfolios will not vary.
(A) PORTFOLIO VALUATION:
Tax-Exempt Money Fund and New York Tax-Exempt Money Fund: Securities are
valued at amortized cost, which has been determined by Excelsior Tax-Exempt
Fund's Board of Directors to represent the fair value of the Funds'
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.
28
<PAGE>
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 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 and New York 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 net capital losses incurred after
October 31 and within the taxable year ("Post-October losses").
In order to avoid a Federal excise tax, each Portfolio is required to
distribute certain minimum amounts of net realized capital gain and net
investment income for the respective periods ending October 31 and December
31 in each calendar year.
(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, 1998, 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 2006 TOTAL
------- ------- ---------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Tax-Exempt Money Fund... $18,000 $31,000 -- $51,000 $35,000 $ 135,000
Short-Term Tax-Exempt
Securities Fund........ -- -- $ 563,000 -- -- 563,000
Intermediate-Term Tax-
Exempt Fund............ -- -- 1,708,000 -- -- 1,708,000
New York Intermediate-
Term Tax-Exempt Fund... -- -- 284,000 -- -- 284,000
</TABLE>
29
<PAGE>
At September 30, 1998, 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>
TAX BASIS TAX BASIS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ -------------- --------------
<S> <C> <C> <C>
Short-Term Tax-Exempt Securities
Fund............................ $ 604,999 -- $ 604,999
Intermediate-Term Tax-Exempt
Fund............................ 14,119,673 -- 14,119,673
New York Intermediate-Term Tax-
Exempt Fund..................... 5,714,071 $ (432) 5,713,639
Long-Term Tax-Exempt Fund........ 9,179,411 -- 9,179,411
California Tax-Exempt Income
Fund............................ 1,273,372 (1,537) 1,271,835
</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 daily net assets.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS
United States Trust Company of New York ("U.S. Trust NY") and U.S. Trust
Company of Connecticut ("U.S. Trust CT" and, collectively with U.S. Trust NY,
"U.S. Trust") serve as the investment adviser to the Portfolios. U.S. Trust
has delegated the daily management of the security holdings of the California
Tax-Exempt Income Fund to U.S. Trust Company, N.A. ("U.S. Trust, N.A."). 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 each of New York
Intermediate-Term Tax-Exempt Fund, Long-Term Tax-Exempt Fund, California Tax-
Exempt Income Fund and New York Tax-Exempt Money Fund. U.S. Trust, N.A. is
compensated only by U.S. Trust and receives no fee directly from California
Tax-Exempt Income Fund. U.S. Trust NY, U.S. Trust CT and U.S. Trust, N.A. are
wholly-owned subsidiaries of U.S. Trust Corporation, a registered bank holding
company.
U.S. Trust CT, Chase Global Funds Services Company, a corporate affiliate
of The Chase Manhattan Bank and Federated Administrative Services (collectively,
the "Administrators") provide administrative services to 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. For the six months ended September
30, 1998, Administration fees charged by U.S. Trust CT were as follows:
30
<PAGE>
<TABLE>
<S> <C>
Tax-Exempt Money Fund................................................. $250,018
Short-Term Tax-Exempt Securities Fund................................. 7,159
Intermediate-Term Tax-Exempt Fund..................................... 49,067
New York Intermediate-Term Tax-Exempt Fund............................ 24,892
Long-Term Tax-Exempt Fund............................................. 28,257
California Tax-Exempt Income Fund..................................... 7,062
New York Tax-Exempt Money Fund........................................ 11,590
</TABLE>
From time to time, as they may deem appropriate in their sole discretion,
U.S. Trust and the Administrators may undertake to waive a portion or all of
the fees payable to them and also may reimburse the Portfolios for a portion
of other expenses. 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 and New York Tax-Exempt
Money Fund to maintain an annual expense ratio of not more than .60%. For the
six months ended September 30, 1998, no fees were waived or expenses
reimbursed for Short-Term Tax-Exempt Securities Fund. U.S. Trust waived
investment advisory fees totaling $107,706 for New York Tax-Exempt Money Fund
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 ration of not more than .50%. For
the six months ended September 30, 1998, U.S. Trust waived investment advisory
fees totaling $21,537 for California Tax-Exempt Income Fund. In addition U.S.
Trust reimbursed expenses totaling $38,663 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.
Administrative service fees paid to affiliates of U.S. Trust amounted to
$574,995, for the six months ended September 30, 1998. 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
(including fees paid to affiliates of U.S. Trust) by such Portfolio. For the
six months ended September 30, 1998, 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................................... $340,805 --
Short-Term Tax-Exempt Securities Fund................... 13,833 $ 1
Intermediate-Term Tax-Exempt Fund....................... 82,164 599
New York Intermediate-Term Tax-Exempt Fund.............. 18,472 5
Long-Term Tax-Exempt Fund............................... 58,972 4,091
California Tax-Exempt Income Fund....................... 77,040 --
New York Tax-Exempt Money Fund.......................... -- --
</TABLE>
31
<PAGE>
Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary of
Federated Investors, Inc., 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.
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, 1998, 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................. $ 8,487,872 $ 9,432,908
Intermediate-Term Tax-Exempt Fund..................... 84,309,200 85,839,900
New York Intermediate-Term Tax-Exempt Fund............ 63,866,923 53,807,807
Long-Term Tax-Exempt Fund............................. 107,086,910 80,523,230
California Tax-Exempt Income Fund..................... 21,020,492 1,364,928
</TABLE>
4. COMMON STOCK:
Excelsior Tax-Exempt Fund currently has authorized capital of 14 billion
shares of Common Stock, 11 billion of which is currently classified to
represent interests in one of seven separate investment portfolios. Authorized
capital currently classified for each Portfolio is as follows: 2 billion shares
of each of Tax-Exempt Money Fund and New York 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 and New York Tax-Exempt Money Fund have sold, reinvested and
redeemed shares only at a constant net asset value of $1.00 per share, the
number of shares represented by such sales, reinvestments and redemptions is
the same as the amount shown below for such transactions.
<TABLE>
<CAPTION>
TAX-EXEMPT MONEY FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
---------------- ---------------
<S> <C> <C>
Sold......................................... $ 2,619,196,826 $ 4,454,235,468
Issued as reinvestment of dividends.......... 1,197,884 1,926,989
Redeemed..................................... (2,643,214,232) (4,129,293,577)
--------------- ---------------
Net Increase (Decrease)...................... $ (22,819,522) $ 326,868,880
=============== ===============
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
SHORT-TERM TAX-EXEMPT SECURITIES FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold....................... 1,090,309 $ 7,747,605 2,733,984 $ 19,392,724
Issued as reinvestment of
dividends................. 7,936 56,399 17,281 122,405
Redeemed................... (1,521,189) (10,804,403) (2,634,790) (18,672,017)
---------- ------------ ---------- ------------
Net Increase (Decrease).... (422,944) $ (3,000,399) 116,475 $ 843,112
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE-TERM TAX-EXEMPT FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold....................... 4,067,431 $ 38,684,396 6,372,050 $ 59,944,634
Issued as reinvestment of
dividends................. 30,001 285,245 64,384 602,980
Redeemed................... (2,757,416) (26,169,530) (4,644,039) (43,387,232)
---------- ------------ ---------- ------------
Net Increase............... 1,340,016 $ 12,800,111 1,792,395 $ 17,160,382
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
NEW YORK INTERMEDIATE-TERM TAX-EXEMPT FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold....................... 3,702,858 $ 32,617,849 6,677,428 $ 57,944,807
Issued as reinvestment of
dividends................. 29,357 258,497 40,167 348,885
Redeemed................... (2,027,342) (17,902,733) (3,883,837) (33,687,486)
---------- ------------ ---------- ------------
Net Increase............... 1,704,873 $ 14,973,613 2,833,758 $ 24,606,206
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
LONG-TERM TAX-EXEMPT FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold....................... 3,508,178 $ 35,346,443 6,182,806 $ 61,622,593
Issued as reinvestment of
dividends................. 60,384 609,680 83,665 833,374
Redeemed................... (1,904,402) (19,169,536) (2,807,996) (27,800,219)
---------- ------------ ---------- ------------
Net Increase............... 1,664,160 $ 16,786,587 3,458,475 $ 34,655,748
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
CALIFORNIA TAX-EXEMPT INCOME FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sold......................... 3,889,122 $27,973,284 3,835,056 $27,133,029
Issued as reinvestment of
dividends................... 782 5,608 759 5,420
Redeemed..................... (1,209,490) (8,696,935) (1,206,002) (8,604,896)
---------- ----------- ---------- -----------
Net Increase................. 2,680,414 $19,281,957 2,629,813 $18,533,553
========== =========== ========== ===========
</TABLE>
33
<PAGE>
<TABLE>
<CAPTION>
NEW YORK TAX-EXEMPT MONEY FUND
------------------------------
08/03/98* - 09/30/98
------------------------------
<S> <C>
Sold............................................. $ 348,678,058
Issued as reinvestment of dividends.............. 4,324
Redeemed......................................... (123,635,502)
-------------
Net Increase..................................... $ 225,046,880
=============
</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.
6. LINE OF CREDIT:
The Portfolios and other affiliated funds participate in a $250 million
unsecured line of credit provided by a syndication of banks under a line of
credit agreement. Borrowings may be made to temporarily finance the repurchase
of Portfolio shares. Interest is charged to each Portfolio, based on its
borrowings, at a rate equal to the Federal Funds Rate plus 2% per year. In
addition, a commitment fee, based on the average daily unused portion of the
line of credit, is allocated among the participating Portfolios at the end of
each quarter. For the six months ended September 30, 1998, the Portfolios had
no borrowings under the agreement.
34
