- -------------------------------------------------------------------------------
CORTLAND 600 Fifth Avenue
TRUST, INC. New York, NY 10020
212-830-5200
===============================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of Cortland Trust, Inc. for the
period April 1, 1995 through September 30, 1995.
Cortland Trust, Inc.'s Money Market Fund had net assets of $1,288,531,056 as of
September 30, 1995. Dividends earned on a share of the General Money Market Fund
held throughout the period were $0.025. When adjusted for the compounding effect
of the reinvestment dividends, this represents a yield of 5.12% on an annual
basis.
As of September 30, 1995, the U.S. Government Fund had net assets of
$257,301,580. Dividends earned on a share of the U.S. Government Fund held
throughout the period were $.024. When adjusted for the compounding effect of
the reinvestment dividends, this represents a yield of 4.96% on an annual basis.
As of September 30, 1995, the Municipal Money Market Fund had net assets of
$248,610,476. Dividends earned on a share of the Municipal Money Market Fund
held throughout the period were $.016. When adjusted for the compounding effect
of the reinvestment dividends, this represents a yield of 3.19% on an annual
basis.
We thank you for your support of Cortland Trust, Inc., and look forward to
continuing to serve your cash management needs.
Sincerely,
/s/ Steven W.Duff
Steven W. Duff
President
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- ------- ------
DOMESTIC SECURITIES (74.07%)
Commercial Paper (26.05%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 25,000,000 American Home Products Incorporated (b) 10/12/95 5.82% $ 24,959,931 P1
15,000,000 Bear Stearns Companies Incorporated 11/10/95 5.80 14,906,562 P1 A1
40,000,000 Ford Motor Credit Company 10/02/95 5.73 40,000,000 P1 A1
20,000,000 Ford Motor Credit Company 12/08/95 5.75 19,788,950 P1 A1
10,000,000 GTE Corporation (b) 10/25/95 5.81 9,963,072
26,000,000 GTE Corporation (b) 11/02/95 5.88 25,869,025
30,000,000 General Motors Acceptance Corporation (b) 10/30/95 5.83 29,864,667
45,000,000 Merrill Lynch & Company Incorporated 10/18/95 5.78 44,885,400 P1 A1+
20,000,000 Merrill Lynch & Company Incorporated 12/07/95 5.72 19,792,833 P1 A1+
20,000,000 New Center Asset Trust 10/11/95 5.79 19,971,200 P1 A1+
20,000,000 New Center Asset Trust 10/12/95 5.80 19,967,944 P1 A1+
25,000,000 Ranger Funding Corporation 10/19/95 5.78 24,932,708 P1 A1
16,000,000 Ranger Funding Corporation 11/09/95 5.78 15,903,227 P1 A1
10,000,000 Ranger Funding Corporation 11/16/95 5.81 9,928,250 P1 A1
15,000,000 Receivables Capital Corporation 10/20/95 5.78 14,956,875 P1 A1
------------ ------------
337,000,000 Total Commercial Paper 335,690,644
------------ ------------
<CAPTION>
Bankers' Acceptance (1.84%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 24,000,000 Trust Company Bank of Atlanta 12/29/95 5.78% $ 23,665,600 P1 A1+
----------- ------------
24,000,000 Total Bankers' Acceptance 23,665,600
----------- ------------
<CAPTION>
Certificates of Deposit (0.78%)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 American Express Centurian Bank 10/23/95 5.75% $ 10,000,000 P1 A1
----------- ------------
10,000,000 Total Certificates of Deposit 10,000,000
----------- ------------
<CAPTION>
Letter of Credit Commercial Paper (22.08%)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 AES Barbers Point, Incorporated
LOC Bank of America 10/05/95 5.78% $ 9,995,208 A1
13,000,000 Banco Bradesco S.A. (Grand Cayman)
LOC Barclays Bank PLC 12/20/95 5.87 12,836,536 P1 A1+
15,000,000 Banco Bradesco S.A. (Grand Cayman)
LOC Barclays Bank PLC 02/23/96 5.79 14,661,000 P1 A1+
19,000,000 Banco Mercantile
LOC Bayerische Vereinsbank, A.G. 11/29/95 5.80 18,824,904 P1 A1+
10,000,000 Beal Cayman Limited
LOC Westdeutsche Landesbank Girozentrale 03/06/96 5.80 9,755,600 P1 A1+
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- ------- ------
Letter of Credit Commercial Paper (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 15,000,000 Beal Cayman Limited
LOC Westdeutsche Landesbank Girozentrale 03/14/96 5.75% $ 14,618,017 P1 A1+
15,000,000 Cemex S.A.
LOC Credit Suisse 11/20/95 5.76 14,883,625 P1 A1+
20,000,000 Cemex S.A.
LOC Credit Suisse 01/10/96 5.77 19,685,556 P1 A1+
15,000,000 Cofco Capital Corporation
LOC Credit Suisse 10/10/95 5.77 14,981,033 P1 A1+
20,000,000 Galicia Funding Corporation
LOC Bayerische Vereinsbank, A.G. 01/17/96 5.85 19,662,355 P1 A1+
5,000,000 Guangdong Enterprises Limited
LOC Credit Suisse 01/25/96 5.72 4,910,396 P1 A1
25,500,000 James River Cogeneration Energy Company
LOC Banque Paribas 10/19/95 5.77 25,430,881 P1 A1
10,000,000 Pemex Capital, Incorporated
LOC Credit Suisse 10/25/95 5.79 9,963,328 P1 A1+
20,000,000 Petroleo Brasileiro S.A.
LOC Barclays Bank PLC 12/11/95 5.86 19,776,389 P1 A1+
15,000,000 Petroleo Brasileiro S.A.
LOC Barclays Bank PLC 02/27/96 5.90 14,647,267 P1 A1+
15,000,000 SCI Systems Incorporation
LOC ABN AMRO Bank N.V. 10/20/95 5.75 14,957,100 P1 A1+
30,000,000 Unibanco Brasilieros
LOC Westdeutsche Landesbank Girozentrale 10/04/95 5.89 29,990,333 P1 A1+
15,100,000 Vehicle Services of America
LOC Nations Bank 11/17/95 5.76 14,989,829 P1 A1
------------ -----------
287,600,000 Total Letter of Credit Commercial Paper 284,569,357
------------ -----------
<CAPTION>
U.S. Government Agency (.39%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 5,000,000 Federal Home Loan Bank (c) 11/18/97 6.25% $ 5,000,000
---------- ----------
5,000,000 Total U.S. Government Agency 5,000,000
---------- ----------
<CAPTION>
Master Note (1.55%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 20,000,000 Donaldson, Lufkin & Jenrette, Inc. (d) 06/21/96 6.20% $ 20,000,000
----------- -----------
20,000,000 Total Master Note 20,000,000
----------- -----------
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- ------- ------
Medium Term Note (3.49%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 25,000,000 Bank One (Columbus) (e) 03/20/96 5.98% $ 25,000,000 P1 A1
20,000,000 Royal Bank of Canada (f) 09/25/96 6.17 19,996,077 P1 A1+
------------- ------------
45,000,000 Total Medium Term Note 44,996,077
------------- ------------
<CAPTION>
Other Notes (5.57%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 10,000,000 City of New York, NY
GO Bonds (Fiscal 1996) - Series A-2
LOC Societe Generale 08/01/25 5.95% $ 10,000,000 VMIG-1 A1+
27,000,000 City of New York, NY
Taxable Municipal Commerical Paper
(Fiscal 1996) - Series A-2
LOC Societe Generale 01/18/96 5.87 27,000,000
8,000,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Inc.) - Series 1995
LOC National Bank of Detroit 06/01/10 6.00 8,000,000 P1
19,000,000 State of Missouri HEFA
(SSM Health Care System) 1995 - Series D
MBIA Insured 06/01/24 5.95 19,000,000 Aaa AAA
7,800,000 Stone Creek, L.L.C.
Taxable Variable Rate Securities - Series 1995
LOC Columbus Bank & Trust Company 08/01/20 6.00 7,800,000 P1
- -------------- ---------------
71,800,000 Total Other Notes 71,800,000
- -------------- ---------------
<CAPTION>
Repurchase Agreements, Overnight (5.94%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 76,578,000 Donaldson, Lufkin & Jennette, Inc., dated 9/29/95
(Collateralized by $76,578,231 U.S. Treasury Notes,
7.875% to 8.250%, due 04/15/98 to 07/15/98) 10/02/95 6.20% $ 76,578,000
- -------------- ---------------
76,578,000 Total Repurchase Agreements, Overnight 76,578,000
- --------------- ---------------
<CAPTION>
Short Term Bank Notes (4.35%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 31,000,000 Boatmen's National Bank of St. Louis (g) 02/28/96 5.85% $ 31,000,000 P1 A1
25,000,000 First Bank System 10/16/95 5.75 25,000,000 P1 A1
----------- -----------
56,000,000 Total Short Term Bank Notes 56,000,000
----------- -----------
<CAPTION>
U.S. Government Obligations (2.03%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 946,931 Small Business Administration Variable Loan (h) 08/25/99 7.13% $ 946,931
384,746 Small Business Administration Variable Loan (h) 09/25/99 6.88 384,746
2,625,314 Small Business Administration Variable Loan (h) 09/25/02 7.13 2,625,315
683,026 Small Business Administration Variable Loan (h) 10/25/02 6.88 683,026
3,645,724 Small Business Administration Variable Loan (h) 12/25/09 7.13 3,645,724
17,636,738 Small Business Administration Variable Loan (h) 03/25/17 6.73 17,836,912
----------- -----------
25,922,479 Total U.S. Government Obligations 26,122,654
----------- -----------
Total Domestic Securities 954,422,332
------------
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- ------- ------
FOREIGN SECURITIES (25.88%)
Eurodollar Certificates of Deposit (1.55%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 20,000,000 Bank of Nova Scotia 11/14/95 5.82% $ 19,998,433
----------- -----------
20,000,000 Total Eurodollar Certificates of Deposit 19,998,433
----------- -----------
Foreign Commercial Paper (20.83%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
$ 10,000,000 ABN-AMRO Canadian Schedule B 12/01/95 5.72% $ 9,905,833 P1 A1+
25,000,000 Banque International A Luxembourg (Oil International) 12/28/95 5.82 24,653,208 P1 A1+
13,000,000 Banque Paribas 11/08/95 5.78 12,923,842 P1 A1
20,000,000 Banque Paribas 12/14/95 5.73 19,770,861 P1 A1
25,000,000 Caisse Centrale Desjardins de Quebec 03/01/96 5.76 24,412,778 P1 A1+
10,000,000 Canadian Imperial Bank of Commerce 10/16/95 5.75 9,977,950 P1 A1+
25,000,000 Cheltenham & Gloucester Building Society 12/22/95 5.70 24,683,875 P1 A1
15,000,000 Commerzbank A.G. 10/25/95 5.75 14,945,183 P1 A1+
12,500,000 Compagnie Bancaire 12/21/95 5.80 12,341,111 P1 A1
20,000,000 Sanwa Business Credit Corporation 10/16/95 5.84 19,954,889 P1 A1
10,000,000 Sanwa Business Credit Corporation 10/16/95 5.85 9,977,406 P1 A1
20,000,000 Sanwa Business Credit Corporation 10/31/95 5.81 19,907,039 P1 A1
65,000,000 Union Bank of Switzerland 10/02/95 6.40 65,000,000 P1 A1+
----------- -----------
270,500,000 Total Foreign Commercial Paper 268,453,975
------------ ------------
<CAPTION>
Japanese Eurodollar Certificates of Deposit (1.56%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 20,000,000 Norinchukin Bank Ltd. 10/31/95 6.17% $ 20,000,160
----------- -----------
20,000,000 Total Japanese Eurodollar Certificates of Deposit 20,000,160
----------- -----------
<CAPTION>
Yankee Certificates of Deposit (1.94%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 15,000,000 Banque Nationale de Paris 10/18/95 5.79% $ 15,000,114 P1 A1+
10,000,000 National Westminster Bank PLC 10/24/95 5.73 10,002,463 P1 A1+
----------- -------------
25,000,000 Total Yankee Certificates of Deposit 25,002,577
----------- -------------
Total Foreign Securities 333,455,145
-------------
Total Investments(99.95%)(Cost $1,287,877,477+) 1,287,877,477
Cash and Other Assets, Net of Liabilities(.05%) 653,579
-------------
Net Assets(100.00%) $ 1,288,531,056
=============
+ Aggregate cost for federal income tax purpose is identical.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
FOOTNOTES:
(a) The ratings noted for instruments secured by a letter of credit are those
of the holding company of the bank whose letter of credit secures such
instruments. P1 and A1+ are the highest ratings for commercial paper.
Securities that are not rated have been determined by the Fund's Board of
Directors to be of comparable quality to those rated securities in which
the Fund may invest.
(b) These are split rated securities, given the highest ratings by at least two
of the four nationally recognized rating agencies.
(c) This is a variable rate Federal Home Loan Bank Note. The interest rate is
adjusted monthly based upon the prime rate minus a fixed number of basis
points.
(d) This is a Master Note. The interest rate is adjusted weekly based upon the
one week LIBOR rate.
(e) This is a Medium Term Note. The interest rate is adjusted daily based upon
the prime rate minus 2.77%.
(f) This is a Medium Term Note. The interest rate is adjusted daily based upon
the federal funds effective plus 10 basis point.
(g) This is a Short Term Bank Note. The interest rate is adjusted weekly based
upon the federal funds rate.
(h) This is a Small Business Administration variable pool certificate. The
interest rate is adjusted periodically based upon the prime rate.
<TABLE>
<CAPTION>
KEY
<S> <C> <C>
GO = Government Obligations
HEFA = Health and Education Facilities Authority
IDRB = Industrial Development Revenue Bond
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- --------
U.S. Government Agencies (62.17%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 5,000,000 Federal Farm Credit Bank 11/01/95 5.73% $ 5,000,000
5,000,000 Federal Home Loan Bank 10/18/95 5.68 4,987,544
5,000,000 Federal Home Loan Bank 12/27/95 5.66 4,933,350
5,000,000 Federal Home Loan Bank 02/12/96 5.76 4,896,556
5,000,000 Federal Home Loan Mortgage Corporation 10/12/95 5.67 4,992,236
5,000,000 Federal Home Loan Mortgage Corporation 10/16/95 5.72 4,988,975
5,000,000 Federal Home Loan Mortgage Corporation 11/01/95 5.68 4,976,667
5,000,000 Federal Home Loan Mortgage Corporation 11/06/95 5.67 4,972,681
5,000,000 Federal Home Loan Mortgage Corporation 11/20/95 5.66 4,961,889
5,000,000 Federal Home Loan Mortgage Corporation 12/01/95 5.65 4,953,583
5,000,000 Federal Home Loan Mortgage Corporation 12/05/95 5.65 4,950,443
5,000,000 Federal National Mortgage Association 10/05/95 5.84 4,997,604
10,000,000 Federal National Mortgage Association 10/10/95 5.79 9,987,333
5,000,000 Federal National Mortgage Association 10/27/95 5.69 4,980,556
10,000,000 Federal National Mortgage Association 11/15/95 5.72 10,000,000
10,000,000 Federal National Mortgage Association 11/15/95 5.72 10,000,000
5,000,000 Federal National Mortgage Association 11/29/95 5.63 4,955,292
5,000,000 Federal National Mortgage Association 12/07/95 5.65 4,949,125
5,885,000 Federal National Mortgage Association 12/12/95 5.62 5,820,700
5,000,000 Federal National Mortgage Association 12/13/95 5.65 4,944,250
5,000,000 Federal National Mortgage Association 12/21/95 5.61 4,938,556
5,000,000 Federal National Mortgage Association 12/22/95 5.66 4,937,225
5,000,000 Federal National Mortgage Association 12/28/95 5.68 4,932,696
5,000,000 Federal National Mortgage Association 01/29/96 5.65 4,908,767
5,000,000 Federal National Mortgage Association 09/03/96 5.83 4,996,841
5,000,000 Student Loan Marketing Association 10/12/95 5.37 5,000,000
5,000,000 Student Loan Marketing Association 02/08/96 5.46 5,000,000
5,000,000 Student Loan Marketing Association 03/14/96 5.49 5,000,000
5,000,000 Student Loan Marketing Association 10/04/96 5.97 5,000,000
----------- -----------
160,885,000 Total U.S. Government Agencies 159,962,869
----------- -----------
<CAPTION>
Repurchase Agreement, Overnight (39.72%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 102,198,000 Morgan (J.P.) Securities, Inc., dated 9/29/95 (Collateralized
by $104,242,768 U.S. Treasury Notes, 5.625% to 5.875%,
due 06/30/97 to 07/31/97) 10/02/95 6.35% $102,198,000
----------- -----------
102,198,000 Total Repurchase Agreement, Overnight 102,198,000
----------- -----------
Total Investments(101.89%)(Cost $262,160,869+) 262,160,869
Liabilities, in Excess of Cash and Other Assets(1.89%) ( 4,859,289)
----------
Net Assets (100.00%) $ 257,301,580
===========
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
---------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- -------- ------
Other Tax Exempt Investments (17.72%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 City of Houston, TX TRAN - Series 1995 06/27/96 3.64% $ 5,028,365 MIG-1 SP-1+
3,000,000 City of Jersey City, Hudson County, NJ BAN 11/17/95 4.59 3,002,165 SP-1
1,710,000 City of Wichita, KS GO
Airport Renewal and Improvement - Series 1994B 11/30/95 4.73 1,711,162 VMIG-1 SP-1+
3,670,000 County of Stark, OH GO - Series 1994-3 10/19/95 4.34 3,670,490
2,000,000 Davis County, UT TAN 12/29/95 3.49 2,003,307
2,500,000 Dayton, OH Limited GO Airport Improvement BAN 12/29/95 3.89 2,500,294
4,000,000 Greater Cleveland Regional Transit Authority
Capital Improvements BAN - Series 1995 04/10/96 3.69 4,007,072 MIG-1
5,000,000 HEFA State of Missouri School District
LOC Bayerische Landesbank Girozentrale 08/19/96 3.88 5,023,177 SP-1+
7,418,000 Howard County, IN Kokomo Center Township
Consolidated School Corporation 12/29/95 4.93 7,420,528
5,000,000 Illinois State Revenue Anticipation Certificates 05/10/96 3.75 5,020,568 MIG-1 SP-1+
2,000,000 Michigan Municipal Bond Authority RN - Series 1995B 07/03/96 3.74 2,010,128 SP-1+
1,600,000 Pennsylvania State University 03/01/96 3.64 1,656,464 P1
1,000,000 Wapello County, IA Ottumwa Community
School District Anticipatory Note - Series 1995 08/08/96 4.37 1,001,366
---------- -----------
43,898,000 Total Tax Exempt Investments 44,055,086
---------- -----------
<CAPTION>
Other Variable Rate Demand Instruments (b) (62.30%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 5,010,000 Arlington County, VA IDA (Air Force Association Project)
LOC Central Fidelity Bank 07/01/98 3.95% $ 5,010,000
1,070,000 Auburn, IN EDRB (R.J. Tower Corporation)
LOC Old Kent Bank & Trust Co. 09/01/00 4.65 1,070,000 A1+
1,975,000 Buffalo County, NE
(Sisters of Charity Health Care Systems)
MBIA Insured 05/01/18 4.35 1,975,000 VMIG-1 A1+
800,000 Buncombe County, NC PCRB
(Ashville Incorporate Project)
LOC Nations Bank 06/01/07 4.60 800,000 P1 A1
3,000,000 California Higher Education Loan Authority
LOC Student Loan Marketing Association 07/01/02 4.50 3,000,000 VMIG-1 A1+
1,000,000 Carthage, MO IDA IDRB (Legget & Platt, Incorporated)
LOC National Westminster Bank PLC 09/01/30 5.05 1,000,000
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- -------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 4,700,000 Charita Bulls Illinois Development Finance Authority
(James Jordan Boys & Girls Club)
LOC American National Bank & Trust Co. of Chicago,
LaSalle National Bank 08/01/30 4.30% $ 4,700,000 A1
1,000,000 Chesapeake, VA Development Authority IDRB
(Volvo Project)
LOC Union Bank of Switzerland 12/01/06 4.35 1,000,000
800,000 City of Akron, OH
(Sanitary Sewer System RB) - Series 1994
LOC Credit Suisse 12/01/14 4.40 800,000
4,000,000 City of Selma, AL IDA RB
(Specialty Minerals, Incorporated Project)
LOC Wachovia Bank & Trust Co., N.A. 11/01/09 4.65 4,000,000 P1
2,000,000 County of Alameda, CA IDA
(Scientific Technology Project)
LOC Banque Nationale de Paris 08/01/24 4.55 2,000,000 A1+
2,400,000 Cullman, AL Industrial Development Board IDRB
(Pressac Project)
LOC National Bank of Detroit 06/01/02 4.75 2,400,000 A1+
1,755,000 Elkhart County, IN EDRB
(Burger Diary Corporation Project)
LOC Old Kent Bank & Trust Co. 12/01/11 4.75 1,755,000 A1
2,500,000 Forsyth, MT PCRB
(Portland General Electric Company)
LOC Banque Nationale de Paris 12/01/16 4.90 2,500,000 VMIG-1
3,400,000 Franklin County, GA Industrial Building Authority (Ross)
LOC Comerica Bank 01/01/07 4.75 3,400,000
2,000,000 Franklin County, IA EDRB (J & J Project) - Series 1995
LOC Fifth Third Bank 05/01/10 4.60 2,000,000
1,470,000 Fulton County, GA RDA (Darby Printing Company)
LOC Wachovia Bank & Trust Co., N.A. 04/01/11 4.65 1,470,000
3,500,000 Graves County, KY IDRB (Seaboard Farms)
LOC Bank of New York 12/01/12 4.60 3,500,000 A1
3,000,000 Greater East, TX Higher Education
Student Loan Authority - Series 1992B
LOC Student Loan Marketing Association 05/01/42 4.45 3,000,000 VMIG-1 A1+
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- -------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Greensville County, VA Development Authority IDRB
(Perdue Farms Incorporated Project)
LOC Trust Co. Bank of Atlanta 10/01/06 4.55% $ 1,000,000
4,120,000 Hamilton County, OH EDRB (Berman Printing Company)
LOC Fifth Third Bank 12/01/08 4.60 4,120,000
1,000,000 Harris County, TX IDRB
(Yokohama Tire Corporation Project) - Series 1986
LOC Industrial Bank of Japan, Ltd. 12/01/96 5.00 1,000,000
5,100,000 Illinois Health Facilities Revolving FD Pooled - Series C
LOC First National Bank 08/01/15 4.40 5,100,000 VMIG-1
2,005,000 Indiana HFFA RB (Community Mental Health)
LOC Toronto-Dominion Bank 11/01/20 4.40 2,005,000
1,600,000 Indiana State EDC
(Fischer Enterprise Limited Project) - Series 1989
LOC Citizen's Fidelity Bank & Trust Company 12/01/04 4.65 1,600,000
558,000 Jefferson County, KY IDRB (Belknap Incorporation)
LOC Chemical Bank 12/01/14 3.85 558,000 P1 A1
2,500,000 Kentucky Pollution Abatement & Water Res. Fin. Auth. RB
(Toyota Motor Manufacturing)
LOC Toyota Motor Credit 08/13/06 5.00 2,500,000
9,900,000 Lexington - Fayette Urban County Airport Corporation
LOC Credit Locale de France 04/01/24 5.00 9,900,000 P1 A1+
3,000,000 Lockport, IL IDRB (Panduit Corporation Project)
LOC Commerzbank A.G. 04/01/25 4.30 3,000,000 VMIG-1 A1+
3,600,000 Massachusetts IFA (890 Commonwealth Realty Trust)
LOC Bank of New York 12/01/11 4.70 3,600,000 P1 A1
400,000 Meridian, MI EDC
(Hannah Research & Technology Center)
LOC Barclays Bank PLC 11/15/14 4.05 400,000 A1+
920,000 Michigan State Strategic Fund (260 Brown Street)
LOC Comerica Bank 10/01/15 3.75 920,000
2,000,000 Michigan State Strategic Fund Long Term Obligation RB
(Beg. Realty Incorporated Project)
LOC Bank One Milwaukee, N.A. 10/01/01 4.63 2,000,000
3,400,000 Mississippi Business Finance Corporation IDRB
(Schuller International, Incorporated Project)
LOC Bank of New York 08/01/07 4.75 3,400,000 P1
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- -------- ------
<CAPTION>
Other Variable Rate Demand Instruments (b) (Continued)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 4,000,000 Mississippi Business Finance Corporation RB
(ED Smith Gem Incorporated Project)
LOC Amsouth Bank N.A. 06/01/04 4.75% $ 4,000,000 P1
500,000 Monroe County, MI EDC (Detroit Edison) - Series CC
LOC Barclays Bank PLC 10/01/24 4.75 500,000 VMIG-1
4,400,000 New Lenox, IL (Panduit Corporation)
LOC Commerzbank A.G. 07/01/15 4.30 4,400,000 VMIG-1
2,500,000 Ocean Highway & Port Authority, FL RB
(Port, Airport & Marina Improvement)
LOC ABN AMRO Bank N.V. 12/01/20 4.40 2,500,000 VMIG-1 A1+
1,200,000 Orange County, FL IDRB
LOC PNC Bank 12/01/03 3.85 1,200,000
4,000,000 Palm Beach County, FL IDRB
(Qo Chemicals Incorporated)
LOC Sanwa Bank, Ltd. 03/01/02 4.65 4,000,000
1,350,000 Parish of St. Charles State of L.A.
(Shell Oil Company Project) - Series 1992 B 11/01/21 4.40 1,350,000 VMIG-1 A1+
1,160,000 PeachTree City Refunding RB
(Equitable - PCDC Associates III Project) - Series 1988
LOC Nations Bank 07/01/10 4.30 1,160,000 A1
1,900,000 Pitkin County, CO (Aspen Skiing Project) - Series B
LOC First Chicago 04/01/14 4.95 1,900,000 A1
2,500,000 Portland, OR IDRB (Oregon Transfer Company)
LOC US National Bank of Oregon 11/01/01 5.03 2,500,000 A1
2,400,000 Portsmouth, VA Redevelopment & Housing Authority
(Chowan Partners)
LOC Central Fidelity Bank 11/01/05 4.50 2,400,000
3,200,000 Prentice, WI IDRB (Blount Incorporated Project)
LOC Nations Bank 09/01/04 4.65 3,200,000 A1
2,250,000 Redmond, WA IDRB (Integrated Circuits Project)
LOC Bank of America 07/01/03 4.35 2,250,000 VMIG-1
4,000,000 Richmond, VA Redevelopment & Housing Authority
(Tobacco Row)
LOC Bayerische Landesbank Girozentrale 10/01/24 4.55 4,000,000 VMIG-1
2,500,000 Rosebud County, Forsyth, MT PCRB (Pacificorp)
LOC Deutsche Bank A.G. 12/01/16 5.00 2,500,000
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
--------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- -------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 3,000,000 Sacramento County, CA MHRB
(Shadowood Apartments Project)
LOC GE Capital Corp. 12/01/22 4.40% $ 3,000,000 A1+
2,100,000 Savannah, GA MHRB (Somerset Place)
LOC Amsouth Bank N.A. 10/01/13 4.50 2,100,000 A1+
1,350,000 Sewickley Valley Hospital Authority, PA RN
(D.T. Watson Rehab. Hospital)
LOC PNC Bank 10/01/97 4.38 1,350,000
500,000 Shelby County, TN Health Educational & Housing
(Rhodes College)
LOC National Westminster Bank PLC 08/01/10 3.90 500,000 A1+
7,400,000 St. Lucie County, FL Solid Waste Disposal RB
(FL Power & Light Co. Project) - Series 1993 01/01/27 4.60 7,400,000 VMIG-1 A1
1,980,000 State of Alabama IDA (Sunshine Homes)
LOC Amsouth Bank N.A. 09/01/04 4.75 1,980,000 P1 A1
955,000 Sterling Heights, MI EDC (Sterling Shopping Center)
LOC National Bank of Detroit 12/01/10 4.35 955,000 A1+
1,000,000 Texas Capital Health Facilities Development Corporation
(Island of Lake Travis)
LOC Credit Suisse 12/01/16 4.45 1,000,000 A1+
5,750,000 The City of Columbus, IA EDRB
(Rock-Tenn Company, Mill Division, Incorporated Project)
LOC Trust Co. Bank of Atlanta 05/01/15 4.55 5,750,000 P1 A1+
3,000,000 Vermont State IDA IDRB (Reygate Project)
LOC ABN AMRO Bank N.V. 12/01/15 4.50 3,000,000 VMIG-1
1,500,000 Village of Bolingbrook
LOC LaSalle National Bank 11/01/19 4.55 1,500,000 P1 A1+
2,000,000 Yakima County, WA Public Corporation (Longview Fibre)
LOC ABN AMRO Bank N.V. 01/01/18 4.65 2,000,000
----------- ----------
154,878,000 Total Other Variable Rate Demand Instruments 154,878,000
----------- -----------
<CAPTION>
Put Bonds (c) (9.09%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
$ 1,930,000 City of Dayton, KY Industrial Building RB
(RADAC Corporation) - Series 1994
LOC Fifth Third Bank 10/02/95 4.95% $ 1,930,000
2,500,000 Greater East, TX Higher Education
Student Loan Authority - Series 1993B
LOC Student Loan Marketing Association 06/03/96 4.10 2,500,000 VMIG-1
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- -------- ------
Put Bonds (c) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 6,500,000 Hartford County, MD IDRB (A.O. Smith)
LOC Bank One Milwaukee, N.A. 03/01/96 4.10% $ 6,500,000
1,500,000 Pennsylvania Higher Education Facilities Authority RB
(Carnegie-Mellon University) 05/01/96 4.50 1,500,000 A1+
2,000,000 Pierce County, WA EDC
(Sea-Land Corporation Project) - Series 1984
LOC Deutsche Bank A.G. 11/01/95 4.55 2,000,000
2,500,000 Putnam County, FL Developement Authority
(Seminole Electric) - Series H-3
LOC National Rural Utilities 03/15/96 3.75 2,500,000 VMIG-1 A1+
600,000 Rhode Island Housing and Mortgage Finance Co.
(Home Ownership Opportunity Bonds) - Series 17C
LOC Bayerische Landesbank Girozentrale 02/01/96 4.40 600,000
3,080,000 Vermont State Educational & Health Building Finance Agency
(Middlebury College) 11/01/95 4.15 3,080,000 A1+
2,000,000 Washington State Housing Finance Commission
Single - Family Program Bonds - Series 1995A
FGIC Insured 06/01/96 4.10 2,000,000 P1 A1+
---------- ----------
22,610,000 Total Put Bonds 22,610,000
---------- ----------
<CAPTION>
Revenue Bond (c) (1.41%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 1,500,000 California HFA Housing Mortgage RB - Series 1995E 02/01/96 4.60% $ 1,500,000 MIG-1 SP-1+
2,000,000 South Texas Higher Education Authority RB
Series 1993A-1 12/01/95 3.62 1,999,628 Aaa
---------- ----------
3,500,000 Total Revenue Bond 3,499,628
---------- ----------
<CAPTION>
Tax Exempt Commercial Paper (c) (3.50%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Beaver County, PA IDA PCRB
(Duquesne Light Company)
LOC Union Bank of Switzerland 10/12/95 3.80% $ 2,000,000 P1 A1+
1,000,000 Beaver County, PA IDA PCRB
(Duquesne Light Company) - Series 1990C
LOC Barclays Bank PLC 12/14/95 3.75 1,000,000 P1 A1+
1,500,000 Burke County, GA
(Oglethorpe Power Corporation) Project A
LOC Credit Suisse 10/23/95 3.00 1,500,000 VMIG-1 A1+
2,200,000 Business Finance Authority of the State of New Hampshire
(NEPCO) 11/08/95 3.75 2,200,000 VMIG-1 A1
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- -------- -------- ------
Tax Exempt Commercial Paper (c) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Venango County, PA IDA RRB
(Scrubgrass Project) - Series A
LOC National Westminster Bank PLC 11/30/95 3.80% $ 2,000,000 P1 A1+
---------- ----------
8,700,000 Total Tax Exempt Commercial Paper 8,700,000
---------- ----------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (0.98%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 1,000,000 New Jersey State EDA IDRB
(Hartz Mountain Industries Project)
LOC Chemical Bank 01/01/02 5.69% $ 1,000,000 P1 A1
1,000,000 New Jersey State EDA IDRB
(Hartz Mountain Industries Project)
LOC Chemical Bank 01/01/02 5.69 1,000,000 P1 A1
433,376 Northhampton County, PA IDA IDRB
(East Industrial Affiliates)
LOC Chemical Bank 01/01/00 5.69 433,376 P1 A1
---------- ----------
2,433,376 Total Variable Rate Demand Instruments - Participations 2,433,376
---------- ----------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (4.53%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,185,000 El Paso Housing Finance Corporation MHRB 1993
LOC GE Capital Corp. 09/01/96 4.25% $ 5,185,000 A1+
1,110,000 Jefferson County, MO IDA IDRB (Holley Partnership)
LOC Chemical Bank 12/01/04 5.69 1,110,000 P1 A1
1,101,663 New Jersey State EDA IDRB (Heary Modelle & Company)
LOC Chemical Bank 09/01/00 5.69 1,101,663 P1 A1
1,400,000 Tyler House Certificate Trust Variable Rate
Certificates of Participation - Series 1995A
LOC PNC Bank 08/01/25 4.90 1,400,000 VMIG-1
2,460,000 York County, PA IDA IDRB
(Manor Care of Kingston Court Incorporated)
LOC Chemical Bank 12/01/08 5.69 2,460,000 P1 A1
----------- ------------
11,256,663 Total Variable Rate Demand Instruments - Private Placements 11,256,663
----------- ------------
Total Investments (99.53%)(Cost $247,432,753+) 247,432,753
Cash and Other Assets, Net of Liabilities (0.47%) 1,177,723
------------
Net Assets (100.00%) $ 248,610,476
============
+ Aggregate cost for federal income tax purpose is identical.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings noted are the highest ratings assigned for tax exempt
commercial paper. Securities that are not rated have been determined by the
Fund's Board of Directors to be of comparable quality to those rated
securities in which the Fund invests.
(b) Securities payable on demand at par including accrued interest (usually
with seven days notice) and where indicated are unconditionally secured as
to principal and interest by a bank letter of credit. The interest rates
are adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
(c) Maturity dates of these securities are the next available put dates.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note IDRB = Industrial Development Revenue Bond
EDA = Economic Development Authority IFA = Industrial Finance Agency
EDC = Economic Development Corporation LOC = Letter of Credit
EDRB = Economic Development Revenue Bond MBIA = Municipal Bond Insurance Association
FGIC = Financial Guaranteed Insurance Company PCRB = Pollution Control Revenue Bond
GIC = Guaranteed Investment Contract RAN = Revenue Anticipation Note
GO = General Obligation RB = Revenue Bond
HRB = Hospital Revenue Bond TAN = Tax Anticipation Note
IDA = Industrial Development Authority
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
ASSETS:
<S> <C> <C> <C>
Investments in securities*............ $ 1,287,877,477 $ 262,160,869 $ 247,432,753
Cash.................................. -- 63,957 --
Interest receivable................... 1,820,351 466,156 1,994,423
Receivable for principal paydown...... 741,460 -- 18,362
Other assets.......................... -- 3,778 --
----------------- --------------- --------------
Total Assets...................... 1,290,439,288 262,694,760 249,445,538
<CAPTION>
LIABILITIES:
<S> <C> <C> <C>
Dividends payable..................... 521,440 104,246 69,712
Management fee payable................ 841,275 165,316 169,385
Payable for securities purchased...... -- 5,000,000 --
Other accounts payable................ 545,517 123,618 595,965
----------------- --------------- ---------------
Total Liabilities................. 1,908,232 5,393,180 835,062
----------------- --------------- ---------------
NET ASSETS.............................. $ 1,288,531,056 $ 257,301,580 $ 248,610,476
================= =============== ===============
NET ASSET VALUE:
Offering and Redemption price per share:
($ 1,288,531,056 / 1,291,062,614 shares) $ 1.00
==========
($ 257,301,580 / 258,007,927 shares) $ 1.00
===========
($ 248,610,476 / 248,637,407 shares) $ 1.00
=========
* Including repurchase agreements amounting to $76,578,000 and $102,198,000
for the Cortland General Money Market Fund and U.S. Government Fund,
respectively.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
INVESTMENT INCOME
<S> <C> <C> <C>
Interest Income............................ $ 35,129,216 $ 7,134,832 $ 5,223,376
--------------- -------------- ---------------
Expenses:
Management fee--Note 3(a)................ 4,517,657 939,866 973,495
Distribution support and services
----Note 3(c).......................... 1,466,621 304,517 315,995
Directors' fees and expenses
----Note 3(b).......................... 7,465 7,465 7,464
Other expenses........................... 40,632 8,651 8,396
--------------- --------------- ---------------
Total Expenses....................... 6,032,375 1,260,499 1,305,350
--------------- --------------- ---------------
Net Investment Income....................... 29,096,841 5,874,333 3,918,026
<CAPTION>
NET REALIZED GAIN (LOSS)
ON INVESTMENTS
<S> <C> <C> <C>
Net realized gain (loss) on investments.... 14,662 ( 29,302) 507
--------------- -------------- ---------------
Increase in net assets from operations..... $ 29,111,503 $ 5,845,031 $ 3,918,533
=============== ============== ===============
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF CHANGES IN NET ASSETS
===============================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
--------------------------- ------------------------ --------------------------
For the For the For the
Six Months For the Six Months For the Six Months For the
Ended Year Ended Year Ended Year
September 30, Ended September 30, Ended September 30, Ended
1995 March 31, 1995 March 31, 1995 March 31,
(Unaudited) 1995 (Unaudited) 1995 (Unaudited) 1995
--------- -------- --------- -------- --------- --------
Operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income.... $ 29,096,841 $ 35,643,987 $ 5,874,333 $ 8,199,294 $ 3,918,026 $ 5,736,793
Net realized gain (loss) on
investments.......... 14,662 ( 7,013,370) ( 29,302) ( 2,047,537) 507 ( 754)
----------- ---------- ---------- ---------- --------- ---------
Increase in net assets
from operations...... 29,111,503 28,630,617 5,845,031 6,151,757 3,918,533 5,736,039
Distributions
to shareholders from:
Net investment income... ( 29,087,029) ( 35,628,040) ( 5,874,333) ( 8,199,294) ( 3,918,026) ( 5,736,793)
Capital share
transactions net (Note 4) 294,652,621 70,010,177 39,023,747 ( 15,098,141) 24,569,009 ( 16,528,510)
Contribution of capital from
investment manager (Note 3d) -- 4,441,391 -- 1,370,492 -- --
----------- ---------- ---------- ----------- ----------- -----------
Total increase (decrease) 294,677,095 67,454,145 38,994,445 ( 15,775,186) 24,569,516 ( 16,529,264)
Net assets:
Beginning of period..... 993,853,961 926,399,816 218,307,135 234,082,321 224,040,960 240,570,224
------------- ----------- ----------- ----------- ----------- -----------
End of period*.......... $1,288,531,056 $993,853,961 $257,301,580 $218,307,135 $248,610,476 $224,040,960
============= =========== =========== =========== =========== ===========
* Includes undistributed net investment income of $25,759 and $15,947 in
Cortland General Money Market Fund at September 30, 1995 and March 31,
1995, respectively.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
===============================================================================
Note 1-General:
Cortland Trust, Inc. (the "Company") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as a no-load, diversified, open-end
management company. The Company consists of three money market funds: the
Cortland General Money Market Fund ("Cortland General Fund"), the U.S.
Government Fund, and the Municipal Money Market Fund ("Municipal Fund"). The
Company accounts separately for the assets, liabilities and operations of each
Fund. Each Fund's fiscal year ends March 31.
It is the Company's policy to maintain a continuous net asset value per share of
$1.00 for each Fund; the Company has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so.
The Cortland General Fund includes the Pilgrim Money Market Class of Shares (
the "Pilgrim Shares"). Pilgrim Shares are identical to the other shares of the
Cortland General Fund with respect to investment objectives, voting rights and
yield, but differ with respect to certain other matters relating primarily to
exchange privileges. At September 30, 1995, there were 7,571,706 Pilgrim Shares
outstanding.
Note 2-Significant Accounting Policies:
(a) Valuation of investments: Investments are valued at amortized cost,
which approximates market value and has been determined by the Company's
Board of Directors to represent the fair value of each Fund's investments.
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gains and losses from
securities transactions are recorded on the identified cost basis. Interest
income is recognized on the accrual basis.
The Cortland General and U.S. Government Funds may enter into repurchase
agreements for securities held by these Funds with financial institutions
deemed to be creditworthy by the Funds' Advisor, subject to the seller's
agreement to repurchase and the Funds' agreement to resell such securities
at a mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the Funds' custodian and must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. In the event that the seller of the
agreement defaults on its repurchase obligation, the Fund maintains the
right to sell the underlying securities at market value.
(c) Dividends to Shareholders: It is the policy of the Company, with
respect to each Fund, to declare dividends from the net investment income
earned by each Fund daily; such dividends are distributed to each Fund's
shareholders on the subsequent business day. Dividends from net realized
capital gains, offset by capital loss carryovers, if any, are generally
declared and paid when realized.
(d) Federal income taxes: It is the policy of each Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders by complying with the applicable
sections of the Internal Revenue Code, and to make distributions of income
(including net realized capital gains) sufficient to relieve it from all
Federal income taxes. Accordingly, no provision for Federal income taxes is
required. At September 30, 1995, Cortland General Fund, U.S. Government
Fund and Municipal Fund had unused capital loss carryforwards of
approximately $784,749, $270,309 and $34,910, respectively, available for
Federal Income Tax purposes to be applied against future securities profit,
if any.
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
Note 3-Management Fee and Other Transactions With Affiliates:
(a) Reich & Tang Asset Management, L.P. (the "Manager") serves as the manager of
the Company and its three Funds pursuant to agreements with the Funds dated
September 14, 1993 ("Agreements"). Under the Agreements, the Manager provides
directly, or indirectly through contracts with others, all services required for
the management of the Company. The Manager bears all ordinary operating expenses
associated with the Company's operation except: (a) the fees of the directors
who are not "interested persons" of the Company, as defined by the Act, and the
travel and related expenses of the directors incident to their attending
shareholder's, director's and committee meetings, (b) interest, taxes and
brokerage commissions, (c) extraordinary expenses, (d) shareholder service or
distribution fees which together can represent up to 0.25% of the net assets of
each Fund on an annualized basis, and (e) membership dues of any industry
association. Additionally, the Manager has assumed all expenses associated with
organizing the Company and all expenses of registering or qualifying the
Company's shares under Federal and state securities laws. The Funds pay the
Manager an annual fee, calculated daily and paid monthly, of .80% of the first
$500 million of the Company's average daily net assets, plus .775% of the next
$500 million of the Company's average daily net assets, plus .75% of the next
$500 million of the Company's average daily net assets, plus .725% of the
Company's average daily net assets in excess of $1.5 billion. The management
fees are allocated pro-rata to each Fund based on their average daily net
assets.
The Manager has agreed to reduce its aggregate fees for any fiscal year, or
reimburse each of the Funds, to the extent required, so that the amount of the
ordinary expenses incurred by each of the Funds (excluding brokerage
commissions, interest, taxes, distribution support and service expenses and
extraordinary expenses) do not exceed the expense limitations imposed by the
securities laws or regulations of those states or jurisdictions in which the
Funds' shares are registered or qualified for sale. Currently, the only such
expense limitation requires that ordinary Fund expenses (excluding brokerage
commissions, interest, taxes, distribution support and service expenses and
extraordinary expenses) for any fiscal year do not exceed 2.5% of the first $30
million of each Fund's average daily net assets, plus 2% of the next $70 million
of each Fund's average daily net assets, plus 1.5% of each Fund's average daily
net assets in excess of $100 million. No reimbursement was required pursuant to
the expense limitation for the period ended September 30, 1995.
The Manager is a wholly-owned subsidiary of New England Investment Companies,
L.P. ("NEIC"). On August 16, 1995, New England Mutual Life Insurance Company
("The New England"), the owner of NEIC's general partner and a majority owner of
the limited partnership interest in NEIC, entered into an agreement to merge
with Metropolitan Life Insurance Company ("MetLife"), with MetLife to be the
survivor of the merger. The merger is subject to several conditions, including
the required approval, by shareholders of the Fund of a proposed new investment
advisory agreement, intended to take effect at the time of the merger. The new
agreement will be substantially similar to the existing agreement.
(b) Certain officers and directors of the Company are "affiliated persons", as
defined in the Act, of the Manager. Each director who is not an "affiliated
person" receives from the Company an annual fee of $5,000 for services as a
director and a fee of $1,250 for each Board of Directors' meeting attended. All
directors fees and expenses are allocated equally to each Fund.
(c) Pursuant to a Distribution Plan ("Plan") dated July 31, 1989, subject to
each Fund's expense limitation, each Fund can make payments of up to 0.25% per
annum of it's average daily net assets for assistance in distributing its
shares. The Manager and/or its affiliates have the ability to make additional
payments for distribution assistance. The Manager and/or its affiliates bear all
other expenses related to the distribution of company's shares.
(d) On November 4,1994, in order to maintain the net asset value of the Cortland
General Fund and U.S. Government Fund at $1.00 per share, the Manager purchased
U.S. Government Agency Securities, from the Cortland General Fund and U.S.
Government Fund for $67,861,655 and $22,920,464, respectively, which was equal
to the respective Portfolio's amortized cost or carrying value on that
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
Note 3-Management Fee and Other Transactions With Affiliates (Continued):
date. The securities had a fair value of $63,420,264 and $21,549,972 for the
Cortland General Fund and U.S. Government Fund, respectively, on this date. The
excess over the fair value ($4,441,391 and $1,370,492 for the Cortland General
Fund and U.S. Government Fund, respectively) that was paid by the Manager has
been classified by the Cortland General Fund and U.S. Government Fund as a
realized loss in the Statements of Operations and capital contribution in the
Statements of Changes in Net Assets. These amounts also were reclassified from
accumulated net realized loss to paid in capital due to a permanent book and tax
difference.
Note 4-Capital Share Transactions:
At September 30, 1995, 3 billion shares of $.001 par value shares of the Company
were authorized. Transactions in the shares of each fund were all at $1.00 per
share and are summarized for the period as follows:
<TABLE>
<CAPTION>
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
---------------------------- --------------------------- -----------------------------
For the For the Year For the For the Year For the For the Year
Six Ended Six Ended Six Ended
Months Ended March 31, Months Ended March 31, Months Ended March 31,
September 30, 1995 September 30, 1995 September 30, 1995
1995 (Audited) 1995 (Audited) 1995 (Audited)
------------- ------- ------------ ------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold........ 2,992,006,946 3,635,190,794 586,913,942 896,820,365 581,768,730 885,996,924
Dividends reinvested 28,988,350 35,554,748 5,861,120 8,185,929 3,910,442 5,728,150
------------- ------------- ----------- ----------- ----------- -----------
3,020,995,296 3,670,745,542 592,775,062 905,006,294 585,679,172 891,725,074
Shares redeemed.... (2,726,342,675) (3,600,735,365) (553,751,315) (920,104,435) (561,110,163) (908,253,584)
------------- ------------- ----------- ----------- ----------- -----------
Net increase (decrease) 294,652,621 70,010,177 39,023,747 ( 15,098,141) 24,569,009 ( 16,528,510)
============= ============= =========== =========== =========== ===========
</TABLE>
The components of net assets for the period ended September 30, are as follows:
<TABLE>
<CAPTION>
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
--------------------------- --------------------------- -----------------------------
For the For the Year For the For the Year For the For the Year
Six Ended Six Ended Six Ended
Months Ended March 31, Months Ended March 31, Months Ended March 31,
September 30, 1995 September 30, 1995 September 30, 1995
1995 (Audited) 1995 (Audited) 1995 (Audited)
-------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Paid-in capital.... 1,291,062,614 996,409,993 258,007,927 218,984,180 248,637,407 224,068,398
Undistributed realized
capital losses.. ( 2,557,317) ( 2,571,979) ( 706,347)( 677,045) ( 26,931) ( 27,438)
Undistributed net
investment income 25,759 15,947 -- -- -- --
------------- ----------- ----------- ----------- ----------- -----------
Total net assets... 1,288,531,056 993,853,961 257,301,580 218,307,135 248,610,476 224,040,960
============= =========== =========== =========== =========== ===========
</TABLE>
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<PAGE>
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CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
Note 5-Financial Highlights:
<TABLE>
<CAPTION>
Cortland General Money Market Fund
---------------------------------------------------------------------------------------
Six Months Ended
September 30, 1995 For the Year Ended March 31,
---------------------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
--------- ------ ------ ------ ------ ------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ .9974 $1.0000 $1.0000 $1.0000 $1.0000 $ .9999
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.................. .0252 .0384 .0250 .0284 .0470 .0706
Net realized and unrealized
gain/(loss) on investments........... .0006 ( .0026)+ .0001 -- -- .0001
------ --------- --------- -------- -------- --------
Total from investment operations......... .0258 .0358 .0251 .0284 .0470 .0707
Less distributions:
Dividends from net investment income.. ( .0252) ( .0384) ( .0250) ( .0284) ( .0470) ( .0706)
Dividends from net realized gain
on investments....................... -- -- ( .0001) -- -- --
------- --------- --------- -------- -------- --------
Total distributions...................... ( .0252) ( .0384) ( .0251) ( .0284) ( .0470) ( .0706)
------- --------- --------- -------- -------- --------
Net asset value, end of period........... $ .9980 $ .9974 $1.0000 $1.0000 $1.0000 $1.0000
======= ========= ========= ======== ======== ========
Total Return............................. 5.12%++ 3.91%+ 2.53% 2.88% 4.81% 7.42%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $1,288,531 $993,854 $926,400 $904,735 $906,662 $805,993
Ratios to average net assets:
Expenses............................... 1.03%++ 1.03%* 1.02%* 1.00%* 1.01%* 1.01%*
Net investment income.................. 4.95%++ 3.84% 2.48% 2.84% 4.67% 7.06%
* Management and distribution support and services fee of .02%, .02%, .04%,
.04% and .04% of average net assets, respectively, were waived during the
years ended 1995, 1994, 1993, 1992 and 1991.
+ Includes the effect of a capital contribution from the Manager (see Note
3). Without a capital contribution the net realized loss on investments
would have been $.0070 per share and the total return would have been
2.89%.
++ Annualized
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
----------------------------------------------------------------------------------------
Six Months Ended
September 30, 1995 For the Year Ended March 31,
-------------------------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
--------- ------ ------ ------ ------ ------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ .9969 $1.0000 $1.0000 $1.0000 $1.0000 $ .9998
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.................. .0241 .0377 .0250 .0290 .0466 .0676
Page 23
Net realized and unrealized
gain/(loss) on investments........... .0004 ( .0031)+ .0002 -- .0004 .0002
------- -------- --------- -------- -------- --------
Total from investment operations......... .0245 .0346 .0252 .0290 .0470 .0678
Less distributions:
Dividends from net investment income.. ( .0241) ( .0377) ( .0250) ( .0290) ( .0466) ( .0676)
Dividends from net realized gain
on investments....................... -- -- ( .0002) -- ( .0004) --
------- -------- --------- -------- -------- --------
Total distributions...................... ( .0241) ( .0377) ( .0252) ( .0290) ( .0470) ( .0676)
------- -------- --------- -------- -------- --------
Net asset value, end of period........... $ .9973 $ .9969 $1.0000 $1.0000 $1.0000 $1.0000
======= ======== ========= ======== ======== ========
Total Return............................. 4.96%++ 3.84%+ 2.55% 2.94% 4.77% 6.94%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $257,302 $218,307 $234,082 $242,199 $230,778 $188,419
Ratios to average net assets:
Expenses............................... 1.03%++ 1.04%* 1.04%* 1.01%* 1.00%* 1.01%*
Net investment income.................. 4.80%++ 3.74% 2.47% 2.89% 4.63% 6.66%
* Management and distribution support and services fee of .01%, .01%, .04%,
.045% and .045% of average net assets, respectively, were waived during the
years ended 1995, 1994, 1993, 1992 and 1991.
+ Includes the effect of a capital contribution from the Manager (see Note
3). Without a capital contribution the net realized loss on investments
would have been $.0094 per share and the total return would have been
2.81%.
++ Annualized
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Municipal Money Market Fund
--------------------------------------------------------------------------------------------
Six Months Ended
September 30, 1995 For the Year Ended March 31,
-------------------------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
--------- ------ ------ ------ ----- -----
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ .9999 $ .9999 $ .9999 $1.0000 $ .9999 $ .9999
------- ------- ------- ------- -------- --------
Income from investment operations:
Net investment income................ .0158 .0255 .0180 .0224 .0374 .0502
Page 24
Net realized and unrealized
gain/(loss) on investments......... -- -- -- ( .0001) .0001 --
------- ------- ------- -------- ------- --------
Total from investment operations....... .0158 .0255 .0180 .0223 .0375 .0502
Less distributions:
Dividends from net investment income ( .0158) ( .0255) ( .0180) ( .0224) ( .0374) ( .0502)
Dividends from net realized gain
on investments..................... -- -- -- -- -- --
------ ------- -------- ------- -------- -------
Total distributions.................... .0158 ( .0255) ( .0180) ( .0224) ( .0374) ( .0502)
------ ------- -------- ------- -------- -------
Net asset value, end of period......... $ .9999 $ .9999 $ .9999 $ .9999 $1.0000 $ .9999
======= ======= ======== ======= ======= =======
Total Return........................... 3.19%+ 2.58% 1.82% 2.26% 3.81% 5.22%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) $248,610 $224,041 $240,570 $210,521 $210,948 $166,770
Ratios to average net assets:
Expenses............................. 1.03%+ .99%* .98%* .92%* .92%* .89%*
Net investment income................ 3.09%+ 2.54% 1.79% 2.22% 3.70% 5.00%
* Management and distribution support and services fee of .02%, .02%, .04%,
.04% and .04% of average net assets, respectively, were waived during the
years ended 1995, 1994, 1993, 1992 and 1991.
+ Annualized
</TABLE>
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