<PAGE>
- --------------------------------------------------------------------------------
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, 1998 through September 30, 1998.
The Cortland General Money Market Fund had 95,227 shareholder accounts and net
assets of $1,187,620,299 as of September 30, 1998.
As of September 30, 1998, the U.S. Government Fund had 6,789 shareholder
accounts and net assets of $180,587,649.
As of September 30, 1998, the Municipal Money Market Fund had 2,935 shareholder
accounts and net assets of $270,319,565.
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. Dufff
Steven W. Duff
President
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- -------
Commercial Paper (12.48%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 Centric Capital Corporation 10/09/98 5.58% $ 9,987,667 P1 A1+
15,000,000 Donaldson, Lufkin, & Jenrette Inc. 10/02/98 5.61 14,997,667
20,000,000 Greyhawk Funding 10/15/98 5.57 19,956,989 P1 A1+
25,000,000 Lehman Brothers Holdings Inc. 11/24/98 5.61 24,792,625 P2 A1
20,000,000 Paine Webber Group 10/08/98 5.66 19,978,106 P2 A2
35,000,000 Paine Webber Group 10/20/98 5.63 34,896,556 P2 A2
14,000,000 Sigma Finance Corporation 04/14/99 5.32 13,608,700 P1 A1+
10,000,000 Twin Towers, Inc. 10/21/98 5.60 9,969,332 P1 A1+
------------ ------------
149,000,000 Total Commercial Paper 148,187,642
------------ ------------
<CAPTION>
Domestic Certificate of Deposit (0.84%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 First Union National Bank of North Carolina 09/17/99 5.25% $ 10,000,000 P1 A1
------------ ------------
10,000,000 Total Domestic Certificate of Deposit 10,000,000
------------ ------------
<CAPTION>
Letter of Credit Commercial Paper (31.74%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 Banca Serfin S.A.
LOC Barclays Bank PLC 08/26/99 5.40% $ 9,531,175 P1 A1+
10,000,000 Banco Bozano Simonsen S.A.
LOC Banco Santander 10/14/98 5.57 9,979,994 P1 A1+
15,000,000 Banco Bozano Simonsen S.A.
LOC Banco Santander 06/18/99 5.79 14,406,333 P1 A1+
15,000,000 Banco de Credito National, S.A.
LOC Barclays Bank PLC 11/20/98 5.55 14,888,958 P1 A1+
10,000,000 Banco Mercantil Del Norte, S.A.
LOC Bayerische Vereinsbank, A.G. 05/05/99 5.33 9,691,000 P1 A1+
20,000,000 Banco Rio de La Plata, S.A.
LOC Bayerische Vereinsbank, A.G. 12/07/98 5.68 19,797,139 P1 A1+
15,000,000 Bancomer S.A.
LOC Bank of Montreal 10/16/98 5.60 14,965,375 P1 A1+
30,000,000 China International Marine Containers
LOC Societe Generale 10/14/98 5.60 29,940,128 P1 A1+
30,000,000 China National Textile Import & Export
LOC Bank of America 11/02/98 5.54 29,853,333 P1 A1+
10,000,000 ContiFinancial Corporation
LOC Dresdner Bank 11/19/98 5.61 9,924,731 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>
$ 10,000,000 Daewoo International Corporation
LOC Credit Suisse First Boston 01/19/99 5.69% $ 9,831,333 P1 A1+
10,000,000 Demir Funding Corporation I
LOC Bayerische Vereinsbank, A.G. 10/13/98 5.58 9,981,567 P1 A1+
10,000,000 Finans Funding Corporation ll
LOC Rabobank Nederland 12/02/98 5.66 9,905,278 P1 A1+
14,000,000 Finans Funding Corporation II
LOC Rabobank Nederland 02/19/99 5.61 13,700,610 P1 A1+
15,000,000 Floren Container, Inc.
LOC Bank of America 12/15/98 5.66 14,828,125 P1 A1+
10,000,000 Garanti Funding Corporation II
LOC Bayerische Vereinsbank, A.G. 02/03/99 5.66 9,809,028 P1 A1+
10,000,000 Koch Funding Corporation
LOC Credit Suisse First Boston 02/08/99 5.76 9,800,306
10,000,000 Minmetals Capitals & Securities Inc.
LOC Credit Suisse First Boston 02/23/99 5.60 9,780,486 P1 A1+
10,000,000 Orix America, Inc.
LOC Bank of America 10/09/98 5.52 9,988,222 P1 A1+
10,000,000 Pactual Overseas
LOC Barclays Bank PLC 02/11/99 5.38 9,805,672 P1 A1+
8,750,000 Pactual Overseas
LOC Barclays Bank PLC 02/12/99 5.57 8,574,125 P1 A1+
25,000,000 Pemex Capital, Inc.
LOC Societe Generale 10/20/98 5.60 24,927,167 P1 A1+
20,000,000 Pemex Capital, Inc.
LOC Swiss Bank Corporation 10/20/98 5.54 19,941,944 P1 A1+
15,000,000 Petroleo Brasileiro S.A.
LOC Barclays Bank PLC 03/30/99 5.52 14,598,750 P1 A1+
10,000,000 Unibanco-Uniao De Bancos Brasilieros
LOC Bayerische Vereinsbank, A.G. 04/16/99 5.80 9,699,849 P1 A1+
30,000,000 Unibanco-Uniao De Bancos Brasilieros
LOC Westdeutsche Landesbank 06/28/99 5.66 28,786,875 P1 A1+
------------ ------------
382,750,000 Total Letter of Credit Commercial Paper 376,937,503
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- -------
Loan Participations (5.89%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 30,000,000 GMAC Mortgage Corporation (b) 10/01/98 6.02% $ 30,000,000
10,000,000 Marsh & McLennan Companies (c) 11/24/98 5.70 10,000,000 P1 A1+
30,000,000 Marsh & McLennan Companies (d) 03/24/99 5.50 30,000,000 P1 A1+
------------ ------------
70,000,000 Total Loan Participations 70,000,000
------------ ------------
<CAPTION>
Master Notes (6.32%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Donaldson, Lufkin & Jenrette (e) 02/05/99 5.67% $ 5,000,000
20,000,000 The Goldman Sachs Group L.P. (f) 01/22/99 5.54 20,000,000
50,000,000 Willamette Industries, Inc. (g) 06/18/99 5.65 50,000,000
------------ ------------
75,000,000 Total Master Notes 75,000,000
------------ ------------
<CAPTION>
Medium Term Notes (4.63%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 Long Lane Master Trust III (h)
LOC Banc Boston 11/02/98 5.71% $ 20,000,000
35,000,000 Structured Enhanced Return Trust - STEERS 1998 - Series A-40 (i)
MBIA Insured 01/15/99 5.61 35,000,000 P1 A1+
------------ ------------
55,000,000 Total Medium Term Notes 55,000,000
------------ ------------
<CAPTION>
Other Notes (27.72%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,600,000 2150 Investment Company - Series 1997 (j)
LOC Fifth Third Bank 02/01/17 5.62% $ 2,600,000
4,350,000 Alabama State IDA (Central Casting Corporation) (j)
LOC First Union National Bank of North Carolina 11/01/15 5.60 4,350,000
3,620,000 Albany Dougherty, GA Payroll IDA
(Flint River Service, Inc. Project-B) (j)
LOC Columbus Bank & Trust Company 05/01/17 5.69 3,620,000 A1
1,785,000 Andrews Laser Works Corporation (j)
LOC Star Bank, N.A. 05/01/08 5.64 1,785,000
1,800,000 Berkeley Square Retirement Center - Series 1998 (j)
LOC Fifth Third Bank 02/01/13 5.62 1,800,000
5,000,000 California Department of Water Resources
(Control Valley Project) Water System RB - Series R-V (j)
LOC Canadian Imperial Bank of Commerce 12/01/24 5.35 5,000,000
5,850,000 Cheney Brothers Inc. (j)
LOC First Union National Bank of North Carolina 12/01/16 5.60 5,850,000
9,575,000 Community Development Authority
of the City of Madison, WI RB - Series 1996A
(Blake '89 Project) (j) 01/01/19 5.60 9,575,000
10,000,000 Concrete Company
LOC Columbus Bank & Trust Company 07/01/48 5.65 10,000,000 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
------ ---- ----- ------ ------- -------
Other Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Consolidated Equities, L.L.C. - Series 1995 (j)
LOC Old Kent Bank & Trust Co. 12/01/25 5.60% $ 2,000,000
4,000,000 Cunat Capital Corporation - Series 1997- B
(Cunat Bros., Inc./Irish Parie L.P.) (j)
LOC LaSalle National Bank 06/01/27 5.60 4,000,000
2,000,000 Delta Capital L.L.C. Series A (j)
LOC First Michigan Bank 01/01/26 5.60 2,000,000
2,870,000 Devin F. & Janis L. McCarthy - Series 1997 (j)
LOC Star Bank, N.A. 07/01/17 5.64 2,870,000
5,000,000 F.C. Bellevue, Inc. (j)
LOC National City Bank 08/01/38 5.60 5,000,000
25,000,000 First Union National Bank of North Carolina (k) 07/16/99 5.60 25,000,000 P1 A1
2,400,000 G & J Land Management - Series 1996 (j)
LOC Fifth Third Bank 12/01/17 5.62 2,400,000
8,210,000 General Electric Engine Receivables 1995-1
Trust Variable Rate Guaranteed Notes (l) 2/14/00 5.52 8,210,000 P1 A1+
1,366,440 General Electric Engine Receivables 1996-1
Trust Variable Rate Guaranteed Notes (m) 02/14/01 5.52 1,366,440 P1 A1+
35,000,000 The Goldman Sachs Group, L.P. (n) 10/13/99 5.68 35,000,000 P1 A1+
10,985,000 Institutional Distributors, Inc. - Series 1997 (j)
LOC Star Bank, N.A. 06/01/17 5.64 10,985,000
1,000,000 Jake Sweeney Automotive, Inc. (j)
LOC Star Bank, N.A. 04/01/05 5.64 1,000,000
25,000,000 John Hancock Mutual Life Insurance Company 08/19/00 5.77 25,000,000
1,130,000 KBL Capital Fund, Inc. (BH Reality Limited Partnership) (j)
LOC Old Kent Bank & Trust Co. 05/01/21 5.60 1,130,000 A1
4,280,000 KBL Capital Fund, Inc. - Series 1995 A (j)
LOC Old Kent Bank & Trust Co. 07/01/05 5.60 4,280,000 A1
2,000,000 Kit Carson County, Colorado Agricultural Development RB - Series 1997
(Midwest Farms, LLC) (j)
LOC Norwest Bank Minneapolis 06/01/27 5.75 2,000,000 A1
4,500,000 Laurel County, KY Industrial Building RB
(Consolidated Biscuit Co. Project) (j)
LOC Fifth Third Bank 03/01/15 5.80 4,500,000
500,000 LRC - B Wadsworth Investors, Ltd. (j)
LOC Star Bank, N.A. 09/01/17 5.77 500,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,915,000 Macroe Properties, Inc. (j)
LOC First Michigan Bank 09/01/27 5.60% $ 3,915,000
4,100,000 Maryland HEFA RB (North Arundale Hospital) (j)
LOC Mellon Bank N.A. 07/01/27 5.75 4,100,000
4,000,000 Maximum Principle Amount Limited Partnership
(Riverview Medical Office Building) (j)
LOC National City Bank 11/01/17 5.60 4,000,000
6,500,000 Maximum Principle Amount VRB Notes (Hancor, Inc. Project) (j)
LOC National City Bank 12/01/07 5.60 6,500,000 A1
15,835,000 Medical Clinic Board of Mobile, AL RB
(Springhill Medical Complex) - Series 1996B (j)
LOC Amsouth Bank N.A. 09/01/11 5.60 15,835,000 P1
1,000,000 Miami Valley Steel Service, Inc. - Series 1996 (j)
LOC National City Bank 02/01/16 5.60 1,000,000
2,790,000 Michigan HEFA (Hope College) - Series 1996M (j)
LOC Old Kent Bank & Trust Co. 10/01/16 5.60 2,790,000
6,345,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Inc.) - Series 1995 (j)
LOC National Bank of Detroit 06/01/10 5.65 6,345,000 P1
4,270,000 New Federal Cold Storage, Incorporated Project - Series 199C (j)
LOC National City Bank 08/01/11 5.60 4,270,000
20,000,000 Oakland-Alameda County (Oakland Coliseum)
LOC Canadian Imperial Bank of Commerce 10/05/98 5.59 20,000,000
5,000,000 Oxnard Financing Authority Refunding Lease RB - Series 1993 (j)
LOC Union Bank of California 06/01/06 5.65 5,000,000 A1
1,750,000 Pomeroy Investment, L.L.C. - Series 1997 (j)
LOC Star Bank, N.A. 04/01/17 5.64 1,750,000
3,900,000 Prince William County, VA - Series A (j)
LOC Wachovia Bank & Trust Co., N.A. 03/01/17 5.27 3,900,000 VMIG-1
4,500,000 Shepperd Capital L.L.C.
LOC First of America Michigan National Bank 09/15/47 5.60 4,500,000
3,450,000 Southern Electric Generating Company 11/10/98 5.74 3,428,227 P1 A1
8,400,000 Southwestern Ohio Steel, Inc. - Series 1998 (j)
LOC Star Bank, N.A. 04/01/08 5.64 8,400,000
19,000,000 State of Missouri HEFA
(SSM Health Care System) 1995 - Series D (j)
MBIA Insured 06/01/24 5.35 19,000,000 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
------ ---- ----- ------ ------- -------
Other Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 12,520,000 Stone Creek, L.L.C. - Series 1995 (j)
LOC Columbus Bank & Trust Company 08/01/22 5.65% $ 12,520,000 P1
2,465,000 Vista Funding Corporation - Series 1997A (j)
LOC Fifth Third Bank 07/01/15 5.62 2,465,000
1,600,000 Walt Sweeney Ford - Series 1996 (j)
LOC Fifth Third Bank 01/01/12 5.62 1,600,000
2,580,000 Washington State Housing Finance Commission
(Marketplace Apt) (j)
LOC Bank One 07/01/29 5.70 2,580,000 VMIG-1
6,400,000 Weller Irrevocable Trust #2 - Series 1998 (j)
LOC First Union National Bank of North Carolina 09/01/13 5.65 6,400,000 A1
3,220,000 Westchester County, NY Industrial Development Agency RB
(B.W.P. Distributors Inc.) (j)
LOC First Union National Bank of North Carolina 10/01/28 5.60 3,220,000
885,000 Westchester Presbyterian Church
LOC Star Bank, N.A. 09/01/13 5.82 885,000
2,960,000 William Thies & Son, Inc. (j)
LOC First Union National Bank of North Carolina 03/01/07 5.60 2,960,000
------------ ---------------
329,206,440 Total Other Notes 329,184,667
------------ ---------------
<CAPTION>
Repurchase Agreement, Overnight (3.62%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 43,000,000 The Goldman Sachs Group L.P., dated 09/30/98
(Collateralized by $44,828,217 GNMA, 7.00%, due 08/15/27) 10/01/98 5.62% $ 43,000,000
------------ ------------
43,000,000 Total Repurchase Agreement, Overnight 43,000,000
------------ ------------
<CAPTION>
Yankee Certificates of Deposit (6.31%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 15,000,000 Cregem, NY
LOC Credit Beligique 04/01/99 5.80% $ 14,996,419 P1 A1+
10,000,000 Deutsche Bank, A.G. 03/02/99 5.70 9,998,004 P1 A1+
15,000,000 Rabobank Nederland 10/06/98 5.64 15,000,140 P1 A1+
20,000,000 Swiss Bank Corporation 02/26/99 5.69 19,996,113 P1 A1+
15,000,000 Swiss Bank Corporation 03/22/99 5.68 14,996,951 P1 A1+
------------ ---------------
75,000,000 Total Yankee Certificates of Deposit 74,987,627
------------ ---------------
Total Investments (99.55%) (Cost $1,182,297,439+) $ 1,182,297,439
Cash and Other Assets, Net of Liabilities (0.45%) 5,322,860
---------------
Net Assets (100.00%) $ 1,187,620,299
===============
+ Aggregate cost of federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1998
(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 & 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 invests.
(b) The interest rate is adjusted daily based upon the Federal Funds effective
rate plus 15 basis points.
(c) The interest rate is adjusted quarterly based upon three month LIBOR plus 2
basis points.
(d) The interest rate is adjusted quarterly based upon three month LIBOR.
(e) The interest rate is adjusted monthly based upon one month LIBOR plus 5
basis points; 30 day put option.
(f) The interest rate is adjusted daily based upon the opening of Federal Funds
plus 10 basis points; daily put option.
(g) The interest rate is adjusted monthly based upon the one month LIBOR rate
plus 3 basis point; 5 day put option.
(h) The interest rate is adjusted quarterly based upon three month LIBOR plus 3
basis points.
(i) The interest rate is adjusted monthly based upon the one month LIBOR plus 3
basis points.
(j) These securities have a 7 day put feature exercisable by the Fund at par
value. Rate changes weekly.
(k) The interest rate is adjusted daily based upon prime minus 2.90.
(l) The interest rate is adjusted weekly based upon the commercial paper
composite plus 5 basis point; weekly put option.
(m) The interest rate is adjusted weekly based upon one month LIBOR minus 1
basis point; weekly put option.
(n) The interest rate is adjusted quarterly based upon LIBOR flat.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
GMAC = General Motors Acceptance Corporation LOC = Letter of Credit
GNMA = Government National Mortgage Association MBIA = Municipal Bond Insurance Association
HEFA = Health & Education Facilities Authority RB = Revenue Bond
IDA = Industrial Development Authority VRB = Variable Revenue Bond
IDRB = Industrial Development Revenue Bond
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- ------
U.S. Government Agencies (33.19%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,990,000 Federal Farm Credit Bank 01/04/99 5.54% $ 1,990,000
2,000,000 Federal Farm Credit Bank 02/25/99 5.56 1,957,043
5,000,000 Federal Home Loan Bank 10/08/98 5.45 4,994,915
2,860,000 Federal Home Loan Bank 01/26/99 5.44 2,860,000
3,000,000 Federal Home Loan Bank 07/06/99 5.70 3,000,000
10,000,000 Federal Home Loan Bank Floater (a) 06/17/99 4.84 9,998,585
3,000,000 Federal Home Loan Bank Floater (b) 09/08/99 5.50 2,998,595
3,000,000 Federal Home Loan Mortgage Corporation 10/09/98 5.50 2,996,383
5,000,000 Federal Home Loan Mortgage Corporation 02/19/99 5.26 4,899,146
5,000,000 Federal Home Loan Mortgage Corporation 03/18/99 5.24 4,881,000
5,000,000 Federal National Mortgage Association 10/15/98 5.33 4,998,829
6,360,000 Federal National Mortgage Association 12/17/98 5.37 6,363,254
3,000,000 Federal National Mortgage Association 02/19/99 5.48 2,997,282
5,000,000 Federal National Mortgage Association 09/24/99 4.99 5,002,844
------------ ---------------
60,210,000 Total U.S. Government Agencies 59,937,876
------------ ---------------
<CAPTION>
Letter of Credit Commercial Paper (2.76%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 5,000,000 Kirksville, College of Osteopathic Medicine, Inc.
LOC Student Loan Marketing Association 11/03/98 5.57% $ 4,974,837
------------ ---------------
5,000,000 Total Letter of Credit Commercial Paper 4,974,837
------------ ---------------
Repurchase Agreements, Overnight (63.68%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 55,000,000 Goldman Sachs Group L.P. dated 10/01/98 (Collateralized by $58,178,094
GNMA, 5.0000% to 6.5000%, due 10/15/27 to 10/20/27) 10/01/98 5.62% $ 55,000,000
60,000,000 Morgan (J.P.) Securities, Inc. dated 10/01/98 (Collateralized by: $22,246,000
US Treasury Note, 5.6250%, due 05/15/08, $2,592,000 TVA Bond, 7.8500%,
due 06/15/44, $33,963,000 Farm Credit Discount Notes, due 10/30/98) 10/01/98 5.65% 60,000,000
------------ ---------------
115,000,000 Total Repurchase Agreements, Overnight 115,000,000
------------ ---------------
Total Investments (99.63%) (Cost $179,912,713+) $ 179,912,713
Cash and Other Assets, Net of Liabilities (0.37%) 674,936
---------------
Net Assets (100.00%) $ 180,587,649
===============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
FOOTNOTES:
(a) This is a variable Federal Home Loan Bank Floating Rate
Note. The interest rate changes monthly based on six month
T-Bill BEY plus 27 basis points.
(b) This is a variable Federal Home Loan Bank Floating Rate
Note. The interest rate changes monthly based on one month
LIBOR minus 18 basis points.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
GNMA = Government National Mortgage Association TVA = Tennessee Valley Authority
LOC = Letter of Credit
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Tax Exempt Investments (16.90%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,100,000 Cook County, IL High School District #227
(Rich Township Limited Tax School Bond) 12/01/98 3.88% $ 3,102,763
2,770,000 Cuyahoga Falls, OH School District 06/30/99 3.75 2,773,167
900,000 Harris County, TX Hospital District RB
AMBAC Insured 02/15/99 3.42 911,624
4,000,000 Illinois Housing Development Authority RB
(Homeowner Mortgage)
LOC Morgan Stanley 04/29/99 3.85 4,000,000 VMIG-1 A1+
2,000,000 Indiana Bond Bank
Advanced Funding Project Notes - Series 1998A-2 01/20/99 3.56 2,002,353 MIG-1 SP-1+
1,460,000 King County, WA School District #4125
FGIC Insured 12/01/98 3.82 1,462,007
670,000 City of Lynchburg, VA GO Public Improvement Bonds 05/01/99 3.75 670,936
4,650,000 Menomonie, WI Area School District 09/08/99 3.65 4,654,183
5,000,000 Montachusett, MA Regional Vocational 07/23/99 3.60 5,013,615 MIG-1
5,000,000 Ohio Housing Finance Agency
Residential Mortgage 1998 - Series A-1
GIC - Trinity Funding 03/01/99 3.80 5,000,000 A1+
2,000,000 Overland Park, KS (Municipal Temporary Notes) 05/01/99 3.74 2,000,991
3,500,000 South Bend Indiana Community School Corporation TAW 12/31/98 3.96 3,501,256
3,000,000 Sun Prairie Area School District TRAN 08/23/99 3.63 3,001,805
2,500,000 Temple University of the Commonwealth System
(Higher Education University Funding Obligation) - Series A 05/14/99 3.70 2,511,126 SP-1+
2,000,000 Tift County, GA School District TAN 12/30/98 3.69 2,001,915
1,080,000 Virginia Housing Development MHRB - Series 1995 05/01/99 3.33 1,087,383
2,000,000 Town of Westfield, Massachusetts 10/22/98 3.48 2,000,622
------------ --------------
45,630,000 Total Other Tax Exempt Investments 45,695,746
------------ --------------
<CAPTION>
Variable Rate Demand Instruments (b) (48.52%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,455,000 Auburn, AL Non-Profit HDA (Lakeside Project)
LOC Columbus Bank & Trust Company 09/01/27 4.20% $ 5,455,000 A1
600,000 Butler County, PA IDA
(Armco Incorporated Project) - Series 1996A
LOC Chase Manhattan Bank, N.A. 06/01/20 4.20 600,000
</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)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Calcasieu Parish, LA (Solid Waste Disposal)
LOC Morgan Guaranty 12/01/27 3.70% $ 2,000,000 A1+
3,500,000 City of Deridder IDRB (Pax Inc. Project)
LOC Bank One 08/01/12 4.15 3,500,000 A1+
2,500,000 City of Milton, WI IDRB (New England Extrusion, Inc. Project)
LOC U.S. Trust 05/01/13 4.00 2,500,000 A1+
5,000,000 Development Finance Authority, AR
(Conestoga Wood Specialties Project)
LOC First Union National Bank 07/01/08 4.10 5,000,000
8,250,000 Director State of Nevada Department of Business & Industry IDRB
(Valley Joist Inc. Project) - Series A
LOC Toronto-Dominion Bank 06/01/17 4.05 8,250,000
2,000,000 Finance Authority of Maine
(William Arthur, Inc.) - Series 1997
LOC First National Bank of Chicago 10/01/12 3.95 2,000,000 A1+
7,000,000 Fulco, GA HRB (Shepard Center Inc. Project)
LOC Wachovia Bank & Trust Co., N.A. 09/01/17 3.55 7,000,000 A1+
6,445,000 Fulton County, GA MHRB (Greenhouse Holcomb Project)
Fannie Mae Collateralized 04/01/30 3.65 6,445,000 A1+
1,200,000 Fulton County, GA Development Authority RB
(Darby Printing Company)
LOC Wachovia Bank & Trust Co., N.A. 04/01/11 4.10 1,200,000
900,000 Gulf Coast IDA Solid Waste Disposal RB (Amoco Oil) 01/01/26 4.25 900,000 P1 A1+
4,600,000 Hamilton County, OH HRB Health Alliance - Series A
MBIA Insured 01/01/18 3.45 4,600,000 VMIG-1 A1+
14,600,000 Harris County, TX HFDC (Sisters of Charity) - Series C 07/01/23 3.55 14,600,000 VMIG-1 A1+
1,200,000 Jackson County, MS Sewage Facility
(Chevron USA Inc. Project) 12/15/24 4.25 1,200,000 P1
3,000,000 Jefferson County, KY Industrial Building
(Fetter Printing Company Project)
LOC PNC Bank, N.A. 05/01/10 4.20 3,000,000
1,000,000 Lewisville, TX IDA Incorporated IDRB
(Benedict Optical Inc. Project)
LOC Comerica Bank 05/01/08 4.25 1,000,000 P1
1,000,000 Lincoln County, WY Pollution Control
(Exxon Corporation) - Series 1987 07/01/17 4.30 1,000,000 P1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1998
(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)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,500,000 Louisville & Jefferson County (Airport System) - Series AA
LOC National City Bank 06/30/02 4.15% $ 1,500,000 VMIG-1
6,900,000 Marion County, WV County Commission
Solid Waste Disposal Facility RB (Granttown Project)
LOC National Westminster Bank PLC 10/01/17 3.65 6,900,000 VMIG-1 A1+
5,000,000 Metropolitan Washington D.C. Airport Authority RB - Series C 10/01/27 3.75 5,000,000 VMIG-1 A1+
800,000 New Albany, IN EDA RB (Bert R. Huncilman & Son) - Series A
LOC PNC Bank, N.A. 04/01/06 4.20 800,000
5,000,000 North Carolina Medical Care Commission HRB
(Pooled Equipment Financing Program)
MBIA Insured 12/01/25 3.95 5,000,000 VMIG-1 A1+
2,100,000 North Texas Higher Education Authority Student Loan RB - Series C
AMBAC Insured 04/01/36 3.65 2,100,000 VMIG-1
2,800,000 Parish of Ouachita, LA (EPCO Carbondioxide Project)
LOC Bank One 02/01/05 4.15 2,800,000 P1
1,000,000 Parish of St. Charles, LA (Shell Oil Norco Project 1993) 09/01/23 4.25 1,000,000 VMIG-1 A1+
475,000 Pennsylvania EDFA (Tri State Hyraulics Inc.) - Series 1996D-7
LOC PNC Bank, N.A. 08/01/06 4.20 475,000
1,600,000 Pennsylvania EDFA RB (Trigon Incorporated)
LOC PNC Bank, N.A. 08/01/25 4.20 1,600,000
1,400,000 Pennsylvania EDFA (Plastikos Reality Project) - Series 1997E
LOC PNC Bank, N.A. 11/01/12 4.20 1,400,000
2,000,000 Phoenix, AZ IDA MHRB (Sunset Ranch)
LOC Swiss Bank Corporation 12/01/27 4.05 2,000,000 VMIG-1
1,000,000 Pitkin County IDRB (Aspen Skiing Company Project)
LOC First National Bank of Chicago 04/01/14 4.25 1,000,000 A1+
2,500,000 Port of Corpus Christie Nueces County, TX
Koch Refining Co. - Series 1995A 05/01/25 3.55 2,500,000 VMIG-1 A1+
1,600,000 Portland, OR IDRB (Oregon Transfer Company)
LOC US National Bank of Oregon 11/01/01 4.62 1,600,000
2,570,000 Prattville, AL IDRB
LOC Amsouth Bank 03/01/26 4.15 2,570,000 A1
2,000,000 Regional Transportation District Colorado
(Transit Vehicles Project) - Series A
LOC State Street Bank & Trust Co. 12/01/17 4.00 2,000,000 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
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 South Texas Higher Education Authority
MBIA Insured 12/01/03 3.60% $ 5,000,000 VMIG-1
800,000 Southwestern, IL Development Authority Solid Waste Disposal
(Shell Oil Company Wood River) 08/01/21 4.25 800,000 VMIG-1 A1+
7,000,000 Sussex County, DE IDRB
(Perdue Farms Inc. Project) - Series 1992
LOC Rabobank Nederland 04/01/12 4.20 7,000,000
1,915,000 Talbot County, GA Development Authority IDRB
(Douglas Asphalt Company Project)
LOC First Union National 04/01/08 4.15 1,915,000
3,300,000 Washington State HFC MHRB (Wadering Creek Project)
LOC Bank of America 01/01/26 4.30 3,300,000 VMIG-1
400,000 Westmoreland County, PA IDRB (Solidur Plastics Estate Project)
LOC PNC Bank 12/01/02 4.20 400,000
1,000,000 West Side Calhoun, TX (Solid Waste Disposal BP Chemicals) 04/01/31 4.25 1,000,000 A1+
1,250,000 York County, PA IDA Limited Obligation RB
(Metal Exchange Corporation Project) - Series 1996
LOC Comerica Bank 06/01/06 4.25 1,250,000
- ------------ --------------
131,160,000 Total Other Variable Rate Demand Instruments 131,160,000
- ------------ --------------
<CAPTION>
Put Bonds (c) (7.60%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 915,000 Bell County Health Facilities Development Corporation 10/01/98 4.75% $ 915,000
4,000,000 Business Finance Authority PCRB
(New England Power Company Project) 05/04/99 3.45 4,000,000
4,000,000 Butler County IDA RB
(Concordia Lutheran Ministries) - Series 1998A
LOC PNC Bank, N.A. 02/01/99 3.57 4,004,572
6,500,000 Hartford County, MD IDRB (A.O. Smith)
LOC Bank One 03/01/99 3.55 6,500,000
1,000,000 Michigan Strategic Fund (Donnelly Corp. Project) - Series 1988
LOC Dresdner Bank A.G. 10/01/98 3.90 1,000,000 P1 A1+
1,100,000 Pulaski County, KY Solid Waste
(East KY Power Coop, Inc.) 02/15/99 3.60 1,100,000 VMIG-1 A1+
3,015,000 Vermont State Educational & Health Building Finance Agency
(Middlebury College) 11/01/98 3.85 3,015,000 A1+
- ------------ --------------
20,530,000 Total Put Bonds 20,534,572
- ------------ --------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- -------
Tax Exempt Commercial Paper (21.61%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Development Authority of Burke County, GA
(Oglethorpe Power Corp. Project)
AMBAC Insured 10/06/98 3.40% $ 1,000,000 MIG-1 A1+
3,313,000 City of Gainesville, FL Utilities System 11/02/98 3.60 3,313,000 P1 A1+
2,100,000 County & City of Denver, CO
Airport System Subordinate RB - Series 1997A
LOC Bayerische Landesbank Girozentrale 12/01/98 3.60 2,100,000 P1 A1+
3,200,000 County & City of Denver, CO
Airport System Subordinate RB - Series 1997A
LOC Bayerische Landesbank Girozentrale 10/30/98 3.50 3,200,000 P1 A1+
5,000,000 County & City of Denver, CO
Airport System Subordinate RB - Series 1997A
LOC Bayerische Landesbank Girozentrale 10/02/98 3.15 5,000,000 P1 A1+
8,000,000 Hospital Board of Lee County, FL HRB
(Lee Memorial Hospital Project) - Series 1992C 10/05/98 3.65 8,000,000 VMIG-1 A1+
10,000,000 Metropolitan Washington D.C. Airport Authority
LOC NationsBank 10/09/98 3.70 10,000,000 A1
4,000,000 Municipal Gas Authority of Georgia, Gas RB
(Southern Portfolio I Project) - Series D
LOC Wachovia Bank & Trust Co., N.A. 10/08/98 3.50 4,000,000 A1+
4,100,000 North Carolina Municipal Power Agency #1 (Catawba Project)
LOC Morgan Guaranty Trust Company/Union Bank of Switzerland 10/06/98 3.10 4,100,000 P1 A1+
4,000,000 North Carolina Municipal Power Agency #1 (Catawba Project)
LOC Morgan Guaranty Trust Company/Union Bank of Switzerland 11/02/98 3.60 4,000,000 P1 A1+
3,000,000 Ohio Water Development Authority PCRB
(Duquesne Light Control)
LOC Toronto-Dominion Bank 11/05/98 3.60 3,000,000 A1+
3,000,000 Sarasota County, FL Public Hospital District HRB
(Sarasota Memorial Hospital) - Series 1996 10/01/98 3.20 3,000,000 VMIG-1
1,500,000 Venango, PA IDA Resource Recovery RB
(Scrubgrass Project) - Series 1990A
LOC National Westminster Bank PLC 10/01/98 3.60 1,500,000 P1 A1+
2,000,000 Venango, PA IDA Resource Recovery RB
(Scrubgrass Project) - Series B
LOC National Westminster Bank PLC 10/07/98 3.60 2,000,000 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
------ ---- ----- ------ ------- -------
Tax Exempt Commercial Paper (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,500,000 Venango, PA IDA Resource Recovery RB
(Scrubgrass Project) - Series 1990B
LOC National Westminster Bank PLC 10/01/98 3.60% $ 2,500,000 P1 A1+
1,700,000 West Virginia Public Energy Authority Energy RB
(Morgantown Energy Assoc. Project) - Series 1989A
LOC Swiss Bank Corporation 10/07/98 3.60 1,700,000 P1 A1+
- ------------ --------------
58,413,000 Total Tax Exempt Commercial Paper 58,413,000
- ------------ --------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (0.74%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 New Jersey State EDA IDRB
(Harrison Riverside Industries Project)
LOC Chase Manhattan Bank, N.A. 01/01/02 5.36% $ 1,000,000
1,000,000 New Jersey State EDA IDRB (Hartz Mountain Industries Project)
LOC Chase Manhattan Bank, N.A. 01/01/02 5.36 1,000,000 P1 A1
- ------------ --------------
2,000,000 Total Variable Rate Demand Instruments - Participations 2,000,000
- ------------ --------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (5.13%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9,100,000 Bastrop County, TX Industrial Development Corp. IDRB
(Blocrest Partners, LP Project)
LOC Union Bank of California 04/01/22 4.25% $ 9,100,000
750,000 Jefferson County, MO IDA IDRB (Holley Partnership)
LOC Chase Manhattan Bank, N.A. 12/01/04 5.36 750,000 P1 A1
440,645 New Jersey State EDA IDRB (Henry Modelle & Company)
LOC Chase Manhattan Bank, N.A. 09/01/00 5.36 440,646 P1 A1
1,400,000 District of Columbia HFA MHRB
(Tyler House Certificate Trust COPS) - Series 1995A
LOC PNC Bank, N.A. 08/01/25 4.30 1,400,000 VMIG-1
2,177,000 York County, PA IDA IDRB (Manor Care of Kingston Court Inc.)
LOC Chase Manhattan Bank, N.A. 12/01/08 5.36 2,177,000 P1 A1
- ------------ --------------
13,867,645 Total Variable Rate Demand Instruments - Private Placements 13,867,646
- ------------ --------------
Total Investments (100.50%) (Cost $271,670,964+) 271,670,964
Liabilities in Excess of Cash and Other Assets (-0.50%) ( 1,351,399)
--------------
Net Assets (100.00%) $270,319,565
==============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1998
(UNAUDITED)
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings noted (unaudited) 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 (primarily
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.
Interest rates adjust periodically.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
AMBAC = American Municipal Bond Assurance Corporation HRB = Hospital Revenue Bond
COPS = Certificates of Participations IDA = Industrial Development Authority
EDA = Economic Development Authority IDRB = Industrial Development Revenue Bond
EDFA = Economic Development Finance Authority LOC = Letter of Credit
FGIC = Financial Guaranty Insurance Company MBIA = Municipal Bond Insurance Association
GIC = Guaranteed Investment Contract MHRB = Multi-Family Housing Revenue Bond
GO = General Obligation PCRB = Pollution Control Revenue Bond
HDA = Housing Development Authority RB = Revenue Bond
HFC = Housing Finance Commission TAN = Tax Anticipation Note
HFDC = Housing Finance Development Authority TAW = Tax Anticipation Warrant
TRAN = Tax and Revenue Anticipation Note
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
ASSETS:
<S> <C> <C> <C>
Investments in securities*............ $ 1,182,297,439 $ 179,912,713 $ 271,670,964
Cash.................................. 2,156,040 442,496 --
Interest receivable................... 5,707,247 526,713 1,777,013
----------------- --------------- ---------------
Total Assets......................... 1,190,160,726 180,881,922 273,447,977
<CAPTION>
LIABILITIES:
<S> <C> <C> <C>
Dividends payable..................... 151,863 22,819 21,828
Due to custodian...................... -- -- 2,795,626
Management fee payable................ 758,235 105,741 179,394
Payable for shares redemption......... 1,419,343 151,485 130,417
Other accounts payable................ 210,986 14,228 1,147
----------------- --------------- ---------------
Total Liabilities................. 2,540,427 294,273 3,128,412
----------------- --------------- ---------------
<CAPTION>
NET ASSETS.............................. $ 1,187,620,299 $ 180,587,649 $ 270,319,565
================= =============== ===============
<CAPTION>
SHARES OUTSTANDING:
<S> <C> <C> <C>
Cortland Shares....................... 553,073,827 58,815,214 45,775,870
Live Oak Shares....................... 636,266,338 67,834,133 56,966,289
Bradford Shares....................... -- 54,191,190 167,598,874
Net asset value, offering and redemption
price per share, all classes
(net assets/shares)................... $ 1.00 $ 1.00 $ 1.00
================= =============== ===============
</TABLE>
* Including repurchase agreements amounting to $43,000,000 and $115,000,000
for the Cortland General Money Market Fund and U.S. Government Fund,
respectively.
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
INVESTMENT INCOME
<S> <C> <C> <C>
Interest Income......................... $ 32,701,679 $ 4,654,126 $ 5,412,915
---------------- --------------- ----------------
Expenses:
Management fee--Note 3(a)............ 4,457,080 647,290 1,120,088
Distribution support and services
----Note 3(c):
Cortland shares.................. 658,834 58,518 56,864
Live Oak shares.................. 628,186 68,475 64,744
Bradford shares.................. -- 65,605 225,104
Other expenses....................... 32,771 12,297 12,939
---------------- --------------- ----------------
Total Expenses................... 5,776,871 852,185 1,479,739
Expenses waived by
Manager--Note 3(c).................. ( 80,240) ( 63,661) ( 182,562)
---------------- --------------- ----------------
Net Expenses..................... 5,696,631 788,524 1,297,177
---------------- --------------- ----------------
Net Investment Income................... 27,005,048 3,865,602 4,115,738
<CAPTION>
NET REALIZED GAIN
ON INVESTMENTS
<S> <C> <C> <C>
Net realized gain on investments........ 60,654 6,720 3,195
---------------- --------------- ----------------
Increase in net assets from operations.. $ 27,065,702 $ 3,872,322 $ 4,118,933
================ =============== ================
</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 Six For the For the Six For the For the Six For the
Months Ended Year Months Ended Year Months Ended Year
September 30, Ended September 30, Ended September 30, Ended
1998 March 31, 1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
--------- ---------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income... $ 27,005,048 $ 66,445,545 $ 3,865,602 $ 9,272,005 $ 4,115,738 $ 6,804,164
Net realized gain on
investments............ 60,654 30,820 6,720 7,240 3,195 21
------------- ------------- ------------- ------------- ------------- -------------
Increase in net assets
from operations........ 27,065,702 66,476,365 3,872,322 9,279,245 4,118,933 6,804,185
Distributions
to shareholders from:
Net investment income:
Cortland shares........ ( 12,293,546) ( 42,375,897) ( 1,064,843) ( 4,996,904) ( 619,059)+ (2,752,924)+
Live Oak shares........ ( 14,732,165) ( 23,562,542) ( 1,568,975) ( 2,753,335) ( 906,705)+ (1,631,855)+
Bradford shares........ -- -- ( 1,233,073) ( 1,144,489) ( 2,589,974)+ (2,419,385)+
Capital share
transactions net (Note 4):
Cortland shares........ 46,832,088 (655,776,020) 10,670,682 (116,800,799) ( 2,008,652) ( 105,555,742)
Live Oak shares........ 25,488,546 169,688,175 905,194 11,710,418 ( 10,735,777) 8,901,280
Bradford shares........ -- -- 2,524,089 51,667,101 ( 4,731,431) 172,330,305
------------- ------------- ------------- ------------- ------------- -------------
Total increase (decrease) 72,360,625 (485,549,919) 14,105,396 ( 53,038,763) ( 17,472,665) 75,675,864
Net assets:
Beginning of period...... 1,115,259,674 1,600,809,593 166,482,253 219,521,016 287,792,230 212,116,366
------------- ------------- ------------- ------------- ------------- -------------
End of period............ $1,187,620,299 $1,115,259,674 $ 180,587,649 $ 166,482,253 $ 270,319,565 $ 287,792,230
============= ============= ============= ============= ============= =============
Undistributed net
investment income..... $ 514,640 $ 535,303 $ 425,988 $ 427,277 $ -0- $ -0-
</TABLE>
+ Designated as exempt-interest dividends for regular federal income tax
purposes.
- -------------------------------------------------------------------------------
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").
Cortland General Fund has two classes of stock authorized, Cortland shares and
Live Oak shares. Both the U.S. Government Fund and the Municipal Fund have three
classes of stock authorized, Cortland shares, Live Oak shares and Bradford
shares. The Cortland shares are subject to a service fee of .25% of its average
net assets pursuant to the Distribution Plan. The Live Oak shares are subject to
a service fee of .20% of its average net assets. The Bradford shares are subject
to a service fee of .25% of its average net assets. In all other respects, the
Cortland shares, Live Oak shares and Bradford shares represent the same interest
in the income and assets of the Fund. Each class of shares has identical voting,
dividend, liquidation and other rights, except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan. Distribution of Live Oak shares commenced November 16, 1995.
Bradford shares commenced distribution on October 1, 1997. The Company accounts
separately for the assets, liabilities and operations of each Fund.
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 shares outstanding in the Cortland General Fund include the Pilgrim Money
Market Class of Shares (the "Pilgrim Shares"). Pilgrim Shares are identical to
the Cortland 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, 1998, there
were 14,512,289 Pilgrim Shares outstanding included in the Cortland shares.
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 Reich & Tang Asset Management, L.P. (the
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)Use of Estimates: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that effect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
Note 2-Significant Accounting Policies: (Continued)
(e) 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, 1998, Cortland General Fund, U.S. Government
Fund and Municipal Fund had unused capital loss carryforwards of
approximately $2,295,160, $708,040 and $32,135 respectively, available for
Federal income tax purposes to be applied against future securities profit,
if any. If not applied against future securities profit, $721,114 and
$1,574,046 will expire in the years 2003 and 2004, respectively, for
Cortland General Fund. $256,799 and $451,241 will expire in the years 2003
and 2004, respectively, for U.S. Government Fund. $16,736, $3,530 and
$11,869 will expire in the years 2001, 2002 and 2003, respectively, for
Municipal Fund.
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% with respect to the
Cortland shares and Bradford shares and up to 0.20% with respect to the Live Oak
shares 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.
(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, each Fund can
make payments of up to 0.25% per annum of its average daily net assets with
respect to Cortland shares of the Fund 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 the company's shares.
Pursuant to a Distribution Plan approved by the Company's Board on November 9,
1995, each Fund can make payments of up to 0.20% per annum of it's average daily
net assets with respect to the Live Oak shares of the Fund for assistance in
distributing its shares.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Note 3-Management Fee and Other Transactions With Affiliates: (Continued)
Pursuant to a Distribution Plan approved by the company's Board on March 5,
1997, each Fund can make payments of up to .25% per annum of its average net
assets with respect to the Bradford shares of the Fund for assistance in
distributing its shares.
During the period ended September 30, 1998, the Distributor waived Distribution
support and services fees of $79,063 and $1,177 for the Cortland shares and Live
Oak shares, respectively, of the Cortland General Fund.
During the period ended September 30, 1998, the Distributor waived Distribution
support and services fees of $9,363, $5,816 and $48,482 for the Cortland shares,
Live Oak shares and Bradford shares, respectively, of the U.S. Government Fund.
During the period ended September 30, 1998, the Distributor waived Distribution
support and services fees of $7,977, $12,633 and $161,952 for the Cortland
shares, Live Oak shares and Bradford shares, respectively, of the Municipal
Fund.
Note 4-Capital Share Transactions:
At September 30, 1998, 6 billion shares of $.001 par value shares of the Company
were authorized, of which $2.5 billion are designated as General Fund shares,
$1.5 billion are designated as U.S. Government Fund shares, $1 billion are
designated as Municipal Fund shares and $1 billion are unclassified.
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
----------------------------- ------------------------------- ------------------------------------
Six Months For the Year Six Months For the Year Six Months For the Year
Ended Ended Ended Ended Ended Ended
September 30, 1998 March 31, September 30, 1998 March 31, September 30, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ---------- ------------- -------- ------------- --------
Cortland Shares
<S> <C> <C> <C> <C> <C> <C>
Shares sold........... 874,796,508 2,461,650,252 74,835,972 297,730,449 89,168,979 319,463,272
Dividends reinvested.. 12,314,247 42,496,995 1,068,489 5,015,292 619,615 2,763,449
------------- -------------- ------------- -------------- ------------ -------------
887,110,755 2,504,147,247 75,904,461 302,745,741 89,788,594 322,226,721
Shares redeemed....... ( 840,278,667) ( 3,159,923,267) ( 65,233,779) ( 419,546,540) ( 91,797,246) ( 427,782,463)
------------- -------------- ------------- -------------- ------------ -------------
Net increase (decrease) 46,832,088 ( 655,776,020) 10,670,682 ( 116,800,799) ( 2,008,652) ( 105,555,742)
============= ============== ============= ============== ============ =============
Live Oak Shares
Shares sold........... 1,639,222,913 2,667,980,939 222,347,619 257,860,909 146,245,644 229,697,164
Dividends reinvested.. 14,704,733 23,505,015 1,559,019 2,746,692 904,876 1,627,788
------------- -------------- ------------- -------------- ------------ -------------
1,653,927,646 2,691,485,954 223,906,638 206,607,601 147,150,520 231,324,952
Shares redeemed....... (1,628,439,100) (2,521,797,779) ( 223,001,444) ( 248,897,183) ( 157,886,297) ( 222,423,672)
------------- -------------- ------------- -------------- ------------ -------------
Net increase (decrease) 25,488,546 169,688,175 905,194 11,710,418 ( 10,735,777) 8,901,280
============= ============== ============= ============== ============ =============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
Note 4-Capital Share Transactions: (Continued)
<TABLE>
<CAPTION>
Municipal Money
U.S. Government Fund Market Fund
--------------------------------- ----------------------------------
Six Months For the Year Six Months For the Year
Ended Ended Ended Ended
September 30, 1998 March 31, September 30, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998
-------------- -------------- ------------- -------------
Bradford Shares+
<S> <C> <C> <C> <C>
Shares sold................ 116,374,236 143,036,995 364,356,928 503,861,964
Dividends reinvested....... 1,238,395 1,138,745 2,592,122 2,406,792
------------- ------------- ------------- -------------
117,612,631 144,175,740 366,949,050 506,268,756
Shares redeemed............ ( 115,088,542) ( 92,508,639) ( 371,680,481) ( 333,938,451)
------------- ------------- ------------- -------------
Net increase .............. 2,524,089 51,667,101 ( 4,731,431) 172,330,305
============= ============= ============= =============
+ Bradford shares commenced distribution on October 1, 1997.
The components of net assets at September 30, are as follows:
<CAPTION>
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
---------------------- -------------------- ----------------------
September 30, 1998 September 30, 1998 September 30, 1998
(Unaudited) (Unaudited) (Unaudited)
--------- --------- ---------
<S> <C> <C> <C>
Paid-in capital...... $ 1,189,340,165 $ 180,840,537 $ 270,341,033
Accumulated net
realized losses... ( 2,234,506) ( 678,876) ( 21,468)
Undistributed net
investment income. 514,640 425,988 -0-
-------------- ------------- -------------
Total net assets..... 1,187,620,299 $ 180,587,649 $ 270,319,565
============== ============= =============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights:
Cortland General Money Market Fund
----------------------------------------------------------------------------------------
Cortland Shares
----------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1998 ------------------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
--------- --------- -------- -------- -------- ----------
Per Share Operating Performance:
(for a share outstanding
throughout the period)
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income...... 0.023 0.047 0.044 0.049 0.038 0.025
Net realized and unrealized
gain/(loss) on investments -- ( 0.001) -- 0.001 ( 0.003)+ --
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.023 0.046 0.044 0.050 0.035 0.025
Less distributions:
Dividends from net
investment income......... ( 0.023) ( 0.047) ( 0.044) ( 0.048) ( 0.038) ( 0.025)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions........... ( 0.023) ( 0.047) ( 0.044) ( 0.048) ( 0.038) ( 0.025)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
Total Return.................. 4.78%* 4.77% 4.52% 4.95% 3.91%+ 2.53%
Ratios/Supplemental Data
Net assets,
end of period (000s omitted) $ 552,274 $ 505,442 $1,160,352 $1,159,173 $ 993,854 $ 926,400
Ratios to average net assets:
Expenses.................. 1.00%* 0.99% 1.02% 1.03% 1.03% 1.02%
Net investment income..... 4.66%* 4.67% 4.41% 4.86% 3.85% 2.48%
Management and Distribution support
and service fees waived. 0.03%* 0.04% -- -- 0.02% 0.02%
* Annualized
+ Includes the effect of a capital contribution from the Manager of $.004 per
share. Without a capital contribution the net realized and unrealized loss
on investments would have been $.007 per share and the total return would
have been 2.89%.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
Cortland General Money Market Fund
--------------------------------------------------------------------------
Live Oak Shares
--------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1998 ----------------------------------------------------
(Unaudited) 1998 1997 1996+
--------- ------------ ----------- -------------
Per Share Operating Performance:
(for a share outstanding
throughout the period)
<S> <C> <C> <C> <C>
Net asset value,
beginning of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------
Income from investment operations:
Net investment income.......... 0.024 0.048 0.045 0.018
Net realized and unrealized
gain/(loss) on investments... -- ( 0.001) -- --
------------ ------------ ------------ ------------
Total from investment operations... 0.024 0.047 0.045 0.018
Less distributions:
Dividends from net
investment income............ ( 0.024 ) ( 0.047 ) ( 0.045 ) ( 0.018 )
------------ ------------ ------------ ------------
Total distributions................ ( 0.024 ) ( 0.047 ) ( 0.045 ) ( 0.018 )
------------ ------------ ------------ ------------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============
Total Return....................... 4.80%* 4.84% 4.59% 4.78%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted).. $ 635,346 $ 609,818 $ 440,457 $ 351,030
Ratios to average net assets:
Expenses....................... 0.97%* 0.91% 0.95% 0.97%*
Net investment income.......... 4.69%* 4.78% 4.48% 4.68%*
Management and distribution support
and service fees waived........ -- 0.05% 0.02% 0.02%*
* Annualized
+ Live Oak shares commenced distribution on November 16, 1995.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
-------------------------------------------------------------------------------------
Cortland Shares
-------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1998 -----------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
---------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding
throughout the period)
Net asset value,
beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income...... 0.023 0.046 0.043 0.047 0.038 0.025
Net realized and unrealized
(loss) on investments...... -- ( 0.001) ( 0.001) -- ( 0.003)+ --
------ ------- ------- ------- ------- ------
Total from investment operations 0.023 0.045 0.042 0.047 0.035 0.025
Less distributions:
Dividends from net
investment income......... ( 0.023) ( 0.045) ( 0.043) ( 0.047) ( 0.038) ( 0.025)
-------- -------- -------- -------- -------- --------
Total distributions.......... ( 0.023) ( 0.045) ( 0.043) ( 0.047) ( 0.038) ( 0.025)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return................. 4.67%* 4.61% 4.37% 4.80% 3.84%+ 2.55%
Ratios/Supplemental Data
<C> <C> <C> <C> <C> <C>
Net assets,
end of period (000's omitted) $ 58,739 $ 48,069 $ 164,464 $ 255,222 $ 218,307 $234,082
Ratios to average net assets:
Expenses................... 1.00%* 0.81% 1.01% 1.04% 1.04% 1.04%
Net investment income...... 4.55%* 4.58% 4.30% 4.72% 3.74% 2.47%
Management and Distribution support
and service fees waived. 0.04%* 0.25% 0.02% -- 0.01% 0.01%
* Annualized
+ Includes the effect of a capital contribution from the Manager of $.006 per share. Without a capital contribution
the net realized and unrealized loss on investments would have been $.009 per share and the total return would have
been 2.81%.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
U.S. Government Fund
----------------------------------------------------------------------------------
Live Oak Shares Bradford Shares
------------------------------------------------ ----------------------------------
Six Months Ended Six Month Ended For the
September 30, For the Year Ended March 31, September 30, Year Ended
1998 ------------------------------ 1998 March 31,
(Unaudited) 1998 1997 1996+ (Unaudited) 1998++
----------- ---- ---- ---- ----------- ----
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding
throughout the period)
Net asset value,
beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- -------- -------- ------- ------- --------
Income from investment operations:
Net investment income...... 0.023 0.049 0.044 0.017 0.024 0.026
Net realized and unrealized
(loss) on investments...... -- ( 0.001) ( 0.001) -- -- ( 0.001)
------- -------- -------- ------- ------- --------
Total from investment operations 0.023 0.048 0.043 0.017 0.024 0.025
Less distributions:
Dividends from net
investment income......... ( 0.023) ( 0.046) ( 0.044) ( 0.017) ( 0.024) ( 0.024)
-------- -------- -------- -------- -------- --------
Total distributions.......... ( 0.023) ( 0.046) ( 0.044) ( 0.017) ( 0.024) ( 0.024)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return................. 4.70%* 4.75% 4.53% 4.74%* 4.83%* 4.83%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted) $ 67,732 $ 66,829 $ 55,057 $ 47,328 $ 54,117 $ 51,584
Ratios to average net assets:
Expenses................... 0.97%* 0.68% 0.86% 0.89%* 0.85%* 0.86%*
Net investment income...... 4.58%* 4.89% 4.45% 4.64%* 4.70%* 5.22%*
Management and Distribution support
and service fees waived. 0.02%* 0.24% 0.12% 0.11%* 0.18%* 0.18%*
* Annualized
+ Live Oak shares commenced distribution on November 16, 1995.
++ Bradford shares commenced distribution on October 1, 1997.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
Municipal Money Market
---------------------------------------------------------------------------------------
Cortland Shares
---------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1998 -------------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
---------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding
throughout the period)
Net asset value,
beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income...... 0.014 0.028 0.026 0.030 0.026 0.018
------- ------- ------- ------- ------- -------
Total from investment operations 0.014 0.028 0.026 0.030 0.026 0.018
Less distributions:
Dividends from net
investment income.......... ( 0.014) ( 0.028) ( 0.026) ( 0.030) ( 0.026) ( 0.018)
-------- -------- -------- -------- -------- --------
Less distributions.......... ( 0.014) ( 0.028) ( 0.026) ( 0.030) ( 0.026) ( 0.018)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return................. 2.77%* 2.81% 2.68% 3.06% 2.58% 1.82%
Ratios/Supplemental Data
<C> <C> <C> <C> <C> <C>
Net assets,
end of period (000's omitted) $ 45,772 $ 47,780 $ 153,322 $ 216,456 $ 224,041 $240,570
Ratios to average net assets:
Expenses................... 1.00%* 1.01% 1.02% 1.03% 0.99% 0.98%
Net investment income...... 2.72%* 2.81% 2.64% 3.02% 2.54% 1.79%
Management and Distribution support
and service fees waived. 0.04%* -- -- -- 0.06% 0.07%
* Annualized
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
Municipal Money Market
----------------------------------------------------------------------------------------------
Live Oak Shares Bradford Shares
--------------------------------------------------- -----------------------------------
Six Months Ended Six Month Ended For the
September 30, For the Year Ended March 31, September 30, Year Ended
1998 --------------------------------- 1998 March 31,
(Unaudited) 1998 1997 1996+ (Unaudited) 1998++
----------- ------ ------ ------- ----------- ----
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding
throughout the period)
Net asset value,
beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- -------- -------- ------- ------- --------
Income from investment operations:
Net investment income........ 0.014 0.029 0.027 0.011 0.014 0.014
------- -------- -------- ------- ------- --------
otal from investment operations 0.014 0.029 0.027 0.011 0.014 0.014
Less distributions:
Dividends from net
investment income.......... ( 0.014) ( 0.029) ( 0.027) ( 0.011) ( 0.014) ( 0.014)
------- ------- ------- ------- ------- --------
Total distributions.......... ( 0.014) ( 0.029) ( 0.027) ( 0.011) ( 0.014) ( 0.014)
------- ------- ------- ------- ------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return................. 2.83%* 2.93% 2.77% 2.96%* 2.92%* 2.87%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted) $ 56,962 $ 67,697 $ 58,794 $ 49,663 $167,586 $ 172,315
Ratios to average net assets:
Expenses..................... 0.94%* 0.90% 0.93% 0.96%* 0.85%* 0.86%*
Net investment income........ 2.80%* 2.86% 2.72% 2.91%* 2.88%* 2.81%*
Management and Distribution support
and service fees waived. 0.04%* 0.07% 0.04% 0.03%* 0.18%* 0.17%*
* Annualized
+ Live Oak shares commenced distribution on November 16, 1995.
++Bradford shares commenced distribution on October 1, 1997.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
_____________________
CORTLAND
TRUST, INC
_____________________
CORTLAND GENERAL
MONEY MARKET
FUND
_____________________
U.S. GOVERNMENT
FUND
_____________________
MUNICIPAL MONEY
MARKET FUND
_____________________
Semi-Annual Report
September 30, 1998
CORTLAND
600 Fifth Avenue
New York, NY 10020
212-830-5200
- --------------------------------------------------------------------------------
<PAGE>
