<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, 1999 through September 30, 1999.
The Cortland General Money Market Fund had 113,941 shareholder accounts and net
assets of $1,646,978,866 as of September 30, 1999.
As of September 30, 1999, the U.S. Government Fund had 6,964 shareholder
accounts and net assets of $189,468,772.
As of September 30, 1999, the Municipal Money Market Fund had 2,703 shareholder
accounts and net assets of $284,968,622.
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, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Commercial Paper (14.85%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 Banco Santander Puerto Rico 10/01/99 5.35% $ 10,000,000 P1 A1+
20,000,000 Greyhawk Funding 12/13/99 5.46 19,782,622 P1 A1+
30,000,000 Greyhawk Funding 12/16/99 5.50 29,658,000 P1 A1+
15,000,000 Lehman Brothers Holdings Inc. 01/26/00 6.15 14,706,525 P1 A1
10,000,000 Market Street Funding 10/26/99 5.40 9,962,639 P1 A1
30,000,000 Paine Webber Group 10/28/99 5.53 29,876,250 P2 A2
56,134,000 Sand Dollar Funding L.L.C. 10/05/99 5.22 56,101,879 P1 A1+
20,000,000 Special Purpose Accounts Receivables Cooperative 10/07/99 5.41 19,982,100 P1 A1
25,000,000 Special Purpose Accounts Receivables Cooperative 10/28/99 5.45 24,898,750 P1 A1
20,000,000 Special Purpose Accounts Receivables Cooperative (n) 02/22/00 5.53 20,000,000 P1 A1
9,775,000 Superior Funding Capital Corporation 11/18/99 5.48 9,704,620 P1 A1+
------------- -------------
245,909,000 Total Commercial Paper 244,673,385
------------- -------------
<CAPTION>
Domestic Certificates of Deposit (1.82%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 30,000,000 Bank of America 10/19/99 4.61% $ 30,000,000 P1 A1+
------------- -------------
30,000,000 Total Domestic Certificates of Deposit 30,000,000
------------- -------------
<CAPTION>
Eurodollar Certificates of Deposit (1.52%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 25,000,000 Deutsche Bank A.G. 12/29/99 5.42% $ 25,000,607 P1 A1+
------------- -------------
25,000,000 Total Eurodollar Certificates of Deposit 25,000,607
------------- -------------
<CAPTION>
Letter of Credit Commercial Paper (20.06%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 ACCOR SA
LOC Banque National de Paris 10/22/99 5.40% $ 19,937,350 P1 A1
10,000,000 ACCOR SA
LOC Banque National de Paris 12/01/99 5.49 9,908,330 P1 A1
20,000,000 ACCOR SA
LOC Banque National de Paris 12/07/99 5.49 19,798,256 P1 A1
15,000,000 Banco Bozano Simonsen S.A.
LOC Banco Santander 02/15/00 6.00 14,665,777 P1 A1+
14,500,000 Banco del Istmo, S.A.
LOC Barclays Bank PLC 06/16/00 5.85 13,923,374 P1 A1+
10,000,000 Banco del Istmo, S.A.
LOC Barclays Bank PLC 10/01/99 4.85 10,000,000 A1+
10,000,000 Banco del Istmo, S.A.
LOC Barclays Bank PLC 10/22/99 4.96 9,971,708 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 Banco del Istmo, S.A.
LOC Barclays Bank PLC 03/29/00 6.03% $ 9,707,500 A1+
15,000,000 Banco Itau SA
LOC Barclays Bank PLC 05/26/00 6.05 14,425,825 P1 A1+
25,000,000 Banco Rio de La Plata, S.A.
LOC HSBC Bank US 10/07/99 5.39 24,977,625 P1 A1+
30,912,000 CSN Overseas
LOC Banco Santander 01/11/00 6.03 30,394,379 P1 A1+
26,000,000 CSN Overseas
LOC Barclays Bank PLC 02/11/00 6.06 25,433,272 P1 A1+
15,000,000 E D & F Man Finance
LOC Rabobank Nederland 12/08/99 5.48 14,847,000 P1 A1+
14,000,000 Finans Funding Corporation II
LOC Rabobank Nederland 03/09/00 5.60 13,664,622 P1 A1+
15,000,000 Finans Funding Corporation II
LOC Rabobank Nederland 03/14/00 5.62 14,627,375 P1 A1+
15,000,000 Garanti Funding Corporation
LOC Bayerische HypoVereinsbank, A.G. 04/18/00 5.94 14,525,000 P1 A1+
20,000,000 Transportadora de Gas del Sur S.A.
LOC Dresdner Bank, A.G. 10/19/99 5.25 19,948,200 P1 A1+
30,000,000 Transportadora de Gas del Sur S.A.
LOC Dresdner Bank, A.G. 12/15/99 5.47 29,662,500 P1 A1+
10,000,000 Unibanco-Uniao De Bancos Brasilieros
LOC Barclays Bank PLC 10/20/99 4.92 9,974,667 P1 A1+
10,000,000 Unibanco-Uniao De Bancos Brasilieros
LOC Barclays Bank PLC 10/21/99 4.93 9,973,306 P1 A1+
------------- -------------
335,412,000 Total Letter of Credit Commercial Paper 330,366,066
------------- -------------
<CAPTION>
Loan Participations (3.10%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 29,000,000 Equitable Life Assurance Society with Chase Manhattan Bank (o) 03/20/00 5.56% $ 29,000,000 P1 A1
22,000,000 Prudential Insurance Company with Chase Manhattan Bank 10/08/99 5.38 22,000,000 P1 A1
------------- -------------
51,000,000 Total Loan Participations 51,000,000
------------- -------------
<CAPTION>
Master Notes (6.98%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 45,000,000 GMAC Mortgage Corporation (b) 10/01/99 5.34% $ 45,000,000
20,000,000 The Goldman Sachs Group L.P. (d) 10/19/99 5.36 20,000,000 P1 A1+
50,000,000 Willamette Industries, Incorporated (e) 06/16/00 5.42 50,000,000 A1
------------- -------------
115,000,000 Total Master Notes 115,000,000
------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Medium Term Notes (3.15%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 The Goldman Sachs Group L.P. 08/07/00 6.00% $ 10,000,000 P1 A1+
31,871,699 Structured Enhanced Return Trust - STEERS 1999 - Series A-40 (f)
Insured by MBIA Insurance Corp. 01/18/00 5.49 31,871,699 P1 A1+
10,000,000 Syndicated Loan Funding Trust (c) 06/15/00 5.52 10,000,000 Aa2
------------ ------------
51,871,699 Total Medium Term Notes 51,871,699
------------ ------------
<CAPTION>
Other Notes (28.69%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,560,000 2150 Investment Company - Series 1997 (g)
LOC Fifth Third Bank 02/01/17 5.41% $ 2,560,000
4,475,000 Adel, GA IDA (Specialty Stampings, L.L.C.) (g)
LOC National Bank of Canada 06/01/14 5.35 4,475,000 VMIG-1
4,150,000 Alabama State IDA (Central Casting Corporation) (g)
LOC First Union National Bank of North Carolina 11/01/15 5.45 4,150,000
3,555,000 Albany Dougherty, GA Payroll IDA
(Flint River Service, Inc. Project-B) (g)
LOC Columbus Bank & Trust Company 05/01/17 5.58 3,555,000 A1
1,000,000 Alpine Capital Investment LLC (g)
LOC First of America 09/15/27 5.58 1,000,000
1,645,000 Andrews Laser Works Corporation (g)
LOC First Star Bank, N.A. 05/01/08 5.49 1,645,000
20,000,000 Bank of America Bank Notes 02/25/00 5.50 20,000,000 P1 A1
1,710,000 Berkeley Square Retirement Center - Series 1998 (g)
LOC Fifth Third Bank 02/01/13 5.47 1,710,000
10,000,000 CEGW, Inc. (g)
LOC PNC Bank, N.A. 03/31/09 5.00 10,000,000
25,000,000 CFM International, Inc. Guaranteed Notes - Series 1999A
LOC General Electric Company 01/01/10 5.43 25,000,000
5,600,000 Cheney Brothers Incorporated (g)
LOC First Union National Bank of North Carolina 12/01/16 5.45 5,600,000
15,750,000 City & County of San Franscisco, CA
Redevelopment Agency MFHRB
LOC Bayerische HypoVereinsbank 07/01/34 5.40 15,750,000 MIG-1
9,400,000 Concrete Company - Series 1998 (g)
LOC Columbus Bank & Trust Company 07/01/48 5.45 9,400,000 A1
1,950,000 Consolidated Equities, L.L.C. - Series 1995 (g)
LOC Old Kent Bank & Trust Company 12/01/25 5.58 1,950,000
</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 Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,445,000 Cunat Capital Corporation
(Cunat Brothers, Incorporated/Irish Parie L.P.) - Series 1997B (g)
LOC LaSalle National Bank 06/01/27 5.58% $ 4,445,000
1,785,000 Delta Capital L.L.C. - Series A (g)
LOC First Michigan Bank 01/01/26 5.58 1,785,000
2,780,000 Devin F. & Janis L. McCarthy - Series 1997 (g)
LOC First Star Bank, N.A. 07/01/17 5.49 2,780,000
5,000,000 Douglas County, GA Development Authority
(Abrams Riverside, LLC Project) (g)
LOC Bank of America 11/01/18 5.45 5,000,000
5,725,000 Erie Funding I - Series 1989
LOC FirstMerit Bank 11/01/26 5.44 5,725,000
25,000,000 First Union National Bank of North Carolina (h) 07/17/00 5.49 25,000,000 P1 A1
2,700,000 Garden City Hospital Osteopath - Series 1997
LOC National City Bank 10/01/17 5.38 2,700,000 A1
15,238,311 General Electric Engine Receivables 1995-1 Trust
VR Guaranteed Notes (i) 02/14/00 5.37 15,238,311 P1 A1+
3,932,719 General Electric Engine Receivables 1996-1 Trust
VR Guaranteed Notes (j) 02/14/01 5.37 3,932,719 P1 A1+
35,000,000 The Goldman Sachs Group, L.P. (k) 08/11/00 5.26 35,000,000 P1 A1+
1,945,000 Goshen Project - Series 1997
LOC FirstMerit Bank 11/01/17 5.49 1,945,000
10,685,000 Institutional Distributors, Incorporated - Series 1997 (g)
LOC First Star Bank, N.A. 06/01/17 5.44 10,685,000
2,135,000 JDV LLC (g)
LOC Michigan National Bank 07/01/27 5.58 2,135,000
885,000 Jake Sweeney Automotive, Incorporated (g)
LOC First Star Bank, N.A. 04/01/05 5.44 885,000
25,000,000 John Hancock Mutual Life Insurance Company (l) 08/19/05 5.53 25,000,000 P1 A1+
1,080,000 KBL Capital Fund, Incorporated
(BH Reality Limited Partnership) (g)
LOC Old Kent Bank & Trust Company 05/01/21 5.48 1,080,000 A1
4,280,000 KBL Capital Fund, Incorporated - Series 1995A (g)
LOC Old Kent Bank & Trust Company 07/01/05 5.48 4,280,000 A1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
(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>
$ 2,000,000 Kit Carson County, CO Agricultural Development RB
(Midwest Farms, LLC) - Series 1997 (g)
LOC Norwest Bank Minneapolis 06/01/27 5.55% $ 2,000,000 A1
5,275,000 Kool Capital, L.L.C. (g)
LOC Michigan National Bank 04/01/29 5.58 5,275,000
5,400,000 Kwik Park Corporation - Series 1999A
LOC PNC Bank, N.A. 09/01/19 5.70 5,400,000
12,420,000 Laminations, Inc. & Santana
LOC PNC Bank, N.A. 08/31/15 5.50 12,420,000
4,400,000 Laurel County, KY Industrial Building RB
(Consolidated Biscuit Company Project) (g)
LOC Fifth Third Bank 03/01/15 5.38 4,400,000
500,000 LRC - B Wadsworth Investors, Limited (g)
LOC First Star Bank, N.A. 09/01/17 5.64 500,000
3,740,000 Macroe Properties, Incorporated (g)
LOC First Michigan Bank 09/01/27 5.58 3,740,000
9,525,000 Madison, WI RB Community Development Authority
(Blake '89 Project) - Series 1996A (g) 01/01/19 5.48 9,525,000
4,100,000 Maryland HEFA RB (North Arundale Hospital) (g)
LOC Mellon Bank, N.A. 07/01/27 5.55 4,100,000
3,940,000 Maximum Principle Amount Limited Partnership
(Riverview Medical Office Building) (g)
LOC National City Bank 11/01/17 5.41 3,940,000
2,650,000 Maximum Principle Amount (Buckeye Corrugated, Inc. Project) (g)
LOC National City Bank 01/01/05 5.41 2,650,000
1,485,000 Maximum Principle Amount (Goson Project) (g)
LOC FirstMerit Bank 08/01/23 5.39 1,485,000
5,850,000 Maximum Principle Amount (Hanover Project) (g)
LOC National City Bank 12/01/07 5.41 5,850,000 A1
3,300,000 McCreary County, KY (Le Sportsac, Inc. Pro-Phase)
LOC Fifth Third Bank 04/01/15 5.44 3,300,000
2,205,000 Miami River Stone Company (g)
LOC First Star Bank, N.A. 08/01/09 5.44 2,205,000
</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 Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Miami Valley Steel Service, Incorporated - Series 1996 (g)
LOC National City Bank 02/01/16 5.41% $ 1,000,000
2,735,000 Michigan HEFA (Hope College) - Series 1996M (g)
LOC Old Kent Bank & Trust Company 10/01/16 5.58 2,735,000
1,000,000 Milwaukee, WI (Historic Third Ward Parking Project)
LOC Northern Trust 09/01/29 5.58 1,000,000
5,790,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Incorporated) - Series 1995 (g)
LOC National Bank of Detroit 06/01/10 5.45 5,790,000 P1
15,005,000 Mobile, AL RB Medical Clinic Board
(Springhill Medical Complex) - Series 1996B (g)
LOC Amsouth Bank, N.A. 09/01/11 5.40 15,005,000 P1
3,700,000 NPI Capital, LLC (g)
LOC Michigan National Bank 07/01/29 5.58 3,700,000
4,090,000 New Federal Cold Storage, Incorporated Project - Series 199C (g)
LOC National City Bank 08/01/11 5.41 4,090,000
3,200,000 New York State HFA RB (345 East 94th Street) (g)
LOC Key Bank 11/01/31 5.40 3,200,000 VMIG-1
2,600,000 Oakland Ortho Realty Association
LOC PNC Bank, N.A. 09/01/09 5.45 2,600,000
4,400,000 Oxnard Financing Authority Refunding Lease RB - Series 1993 (g)
LOC Union Bank of California 06/01/06 5.50 4,400,000 A1
1,700,000 Pomeroy Investments, LLC - Series 1997 (g)
LOC First Star Bank, N.A. 04/01/17 5.49 1,700,000
3,400,000 Prince William County, VA - Series A (g)
LOC Wachovia Bank & Trust Company, N.A. 03/01/17 5.35 3,400,000 VMIG-1
2,095,000 RK Capital LLC (g)
LOC Michigan National Bank 12/01/28 5.58 2,095,000
5,500,000 Security Self-Storage, Inc. (g)
LOC Bank One 01/01/19 5.41 5,500,000
4,415,000 Shepperd Capital L.L.C. (g)
LOC First of America 09/15/47 5.58 4,415,000
1,700,000 Shepperd Capital L.L.C. (g)
LOC Old Kent Bank & Trust Company 03/15/49 5.58 1,700,000
15,000,000 SMM Trust 1997 - A (m) 12/15/99 5.61 15,000,000 P1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
(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>
$ 7,600,000 Southwestern Ohio Steel, Incorporated (g)
LOC First Star Bank, N.A. 04/01/08 5.44% $ 7,600,000
1,820,000 Stallard-Schrier Corporation (g)
LOC Fifth Third Bank 09/01/16 5.47 1,820,000
19,000,000 State of Missouri HEFA
(SSM Health Care System) 1995 - Series D (g)
Insured by MBIA Insurance Corp. 06/01/24 5.55 19,000,000 A1+
2,000,000 Stevenson Photo Color Company
LOC First Star Bank, N.A. 08/01/19 5.44 2,000,000
12,370,000 Stone Creek, L.L.C. - Series 1995 (g)
LOC Columbus Bank & Trust Company 08/01/22 5.45 12,370,000 P1
3,200,000 Team Capital, L.L.C. (g)
LOC Old Kent Bank & Trust Company 03/01/29 5.58 3,200,000
7,670,000 Three Reading LP (g)
Guaranteed by Federal Home Loan Bank 06/01/24 5.50 7,670,000 A1+
1,950,000 Town of Greendale, IN EDA RB - Series 1993B (g)
LOC National City Bank 12/01/05 5.41 1,950,000
1,610,000 Tripplet Corporation (g)
LOC Fifth Third Bank 03/01/08 5.47 1,610,000
2,375,000 Vista Funding Corporation - Series 1997A (g)
LOC Fifth Third Bank 07/01/15 5.42 2,375,000
1,520,000 Walt Sweeney Ford - Series 1996 (g)
LOC Fifth Third Bank 01/01/12 5.47 1,520,000
2,580,000 Washington State Housing Finance Commission
(Marketplace Apt) (g)
LOC Bank One 07/01/29 5.40 2,580,000 VMIG-1
2,120,000 Weller Irrevocable Trust #2 - Series 1998 (g)
LOC First Union National Bank of North Carolina 09/01/13 5.45 2,120,000 A1
3,090,000 Westchester County, NY IDA RB (B.W.P. Distributors Inc.) (g)
LOC First Union National Bank of North Carolina 10/01/28 5.45 3,090,000
850,000 Westchester Presbyterian Church (g)
LOC First Star Bank, N.A. 09/01/13 5.64 850,000
2,240,000 William Thies & Son, Incorporated (g)
LOC First Union National Bank of North Carolina 03/01/07 5.45 2,240,000
2,000,000 Wilmington Iron & Metal Company (g)
LOC Bank One 08/01/14 5.42 2,000,000
------------- -------------
472,526,030 Total Other Notes 472,526,030
------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Repurchase Agreement, Overnight (2.55%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 42,000,000 The Goldman Sachs Group L.P
(Collateralized by $55,099,911, GNMA, 7.00% to 8.375%,
due 3/15/28 to 9/15/29, proceeds $42,840,000) 05/03/99 5.40% $ 42,000,000
------------- -------------
42,000,000 Total Repurchase Agreement, Overnight 42,000,000
------------- -------------
<CAPTION>
Short Term Bank Note (0.91%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 15,000,000 Bank of America 01/18/00 5.00% $ 14,999,137 P1 A1+
------------- -------------
15,000,000 Total Short Term Bank Note 14,999,137
------------- -------------
<CAPTION>
Time Deposits (6.68%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 60,000,000 Bank One 10/01/99 5.70% $ 60,000,000 P1 A1+
50,000,000 Westdeutsche Landesbank 10/01/99 5.71 50,000,000 P1 A1+
------------- -------------
110,000,000 Total Time Deposits 110,000,000
------------- -------------
<CAPTION>
Yankee Certificates of Deposit (9.41%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 Bank of Montreal 05/08/00 5.23% $ 9,997,099 P1 A1+
25,000,000 Bank Nationale de Paris 12/21/99 5.41 25,000,000 P1 A1
20,000,000 Bayerische Hypo-und Vereinsbank, A.G. 05/04/00 5.23 19,993,733 P1 A1
10,000,000 Commerzbank, A.G. 02/25/00 5.20 9,997,307 P1 A1+
15,000,000 Commerzbank, A.G. 05/18/00 5.32 14,995,454 P1 A1+
15,000,000 Deutsche Bank, A.G. 05/22/00 5.40 14,996,304 P1 A1+
20,000,000 Toronto Dominion Bank 12/29/99 5.09 19,999,530 P1 A1+
30,000,000 Unibank A/S 12/23/99 5.44 30,000,679 P1 A1
10,000,000 Union Bank of Switzerland 07/05/00 5.80 9,997,084 P1 A1+
------------- -------------
155,000,000 Total Yankee Certificates of Deposit 154,977,190
------------- -------------
Total Investments (99.72%) (Cost $1,642,414,114+) 1,642,414,114
Cash and Other Assets, Net of Liabilities (0.28%) 4,564,752
--------------
Net Assets (100.00%) $1,646,978,866
==============
+ Aggregate cost for 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, 1999
(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 monthly based upon one month LIBOR.
(c) The interest rate is adjusted monthly based upon one month LIBOR plus 14
basis points.
(d) The interest rate is adjusted daily based upon the opening of Federal Funds
plus 10 basis points; daily put option.
(e) The interest rate is adjusted monthly based upon one month LIBOR rate plus
3 basis points; 5 day put option.
(f) The interest rate is adjusted monthly based upon one month LIBOR plus 11
basis points.
(g) These securities have a 7 day put feature exercisable by the Fund at par
value. Rate changes weekly.
(h) The interest rate is adjusted daily based upon prime minus 2.90%.
(i) The interest rate is adjusted weekly based upon the commercial paper
composite plus 5 basis points; weekly put option.
(j) The interest rate is adjusted weekly based upon one month LIBOR minus 1
basis point; weekly put option.
(k) The interest rate is adjusted quarterly based upon LIBOR flat.
(l) The interest rate is adjusted weekly at par value.
(m) One year put. Rate changes 8/19/99 based upon LIBOR plus 6 basis points.
(n) The interest rate is adjusted quarterly based upon LIBOR plus 15 basis
points.
(o) The interest rate is adjusted quarterly based upon three month LIBOR plus 5
basis points.
<TABLE>
KEY:
<S> <C> <C> <C> <C> <C>
EDA = Economic Development Authority IDRB = Industrial Development Revenue Bond
GMAC = General Motors Acceptance Corporation LOC = Letter of Credit
HFA = Housing Finance Authority MFHRB = Multi-Family Housing Revenue Bond
HEFA = Health & Education Facilities Authority RB = Revenue Bond
IDA = Industrial Development Authority
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- ------
Agency Discount Notes (29.15%)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,500,000 Federal Farm Credit Bank 04/25/00 4.95% $ 3,405,211
2,000,000 Federal Home Loan Bank 10/08/99 5.13 1,998,025
2,000,000 Federal Home Loan Bank 03/16/00 5.04 1,955,188
8,000,000 Federal Home Loan Mortgage Corporation 10/04/99 5.14 7,996,589
6,804,000 Federal Home Loan Mortgage Corporation 10/05/99 5.00 6,800,274
2,885,000 Federal Home Loan Mortgage Corporation 10/12/99 5.25 2,880,407
3,000,000 Federal Home Loan Mortgage Corporation 10/13/99 4.82 2,995,300
3,000,000 Federal Home Loan Mortgage Corporation 10/14/99 5.21 2,994,399
3,000,000 Federal Home Loan Mortgage Corporation 10/15/99 5.20 2,993,957
2,850,000 Federal Home Loan Mortgage Corporation 11/02/99 5.26 2,836,776
3,000,000 Federal Home Loan Mortgage Corporation 11/05/99 5.26 2,984,746
1,561,000 Federal Home Loan Mortgage Corporation 11/18/99 5.26 1,550,135
3,000,000 Federal Home Loan Mortgage Corporation 01/20/00 5.60 2,949,310
3,000,000 Federal Home Loan Mortgage Corporation 02/03/00 5.66 2,942,396
3,000,000 Federal National Mortgage Association 10/08/99 4.85 2,997,241
3,000,000 Federal National Mortgage Association 11/09/99 5.21 2,983,295
2,000,000 Federal National Mortgage Association 02/02/00 5.50 1,963,144
------------ ------------
55,600,000 Total Agency Discount Notes 55,226,393
------------ ------------
<CAPTION>
Floating Rate Securities (4.22%)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Federal Home Loan Bank Floater (a) 11/10/99 5.28% $ 4,999,669
3,000,000 Federal Home Loan Bank Floater (b) 02/25/00 5.69 3,000,000
------------ ------------
8,000,000 Total Floating Rate Securities 7,999,669
------------ ------------
<CAPTION>
Government Agencies (9.17%)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,000,000 Federal Home Loan Bank 10/27/99 4.94% $ 3,000,000
3,000,000 Federal Home Loan Bank 10/27/99 5.00 3,000,000
3,400,000 Federal Home Loan Bank 11/30/99 5.30 3,370,439
2,000,000 Federal Home Loan Bank 01/01/00 5.58 1,994,936
2,000,000 Federal Home Loan Bank 05/11/00 5.05 1,999,619
2,000,000 Federal Home Loan Bank 05/24/00 5.21 2,000,000
2,000,000 Federal Home Loan Bank 08/24/00 5.95 2,000,000
------------ ------------
17,400,000 Total Government Agencies 17,364,994
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- ------
Government Agency Medium Term Notes (10.55%)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,000,000 Federal Farm Credit Bank 10/01/99 4.83% $ 3,000,000
2,000,000 Federal Home Loan Bank 11/12/99 4.83 2,002,025
2,500,000 Federal Home Loan Bank 01/21/00 4.75 2,500,625
3,000,000 Federal Home Loan Bank 04/28/00 4.97 2,999,337
5,500,000 Federal Home Loan Bank 05/19/00 5.19 5,495,550
2,000,000 Federal Home Loan Bank 10/06/00 6.02 2,000,000
2,000,000 Federal National Mortgage Association 01/27/00 5.55 1,998,598
------------ ------------
20,000,000 Total Government Agency Medium Term Notes 19,996,135
------------ ------------
<CAPTION>
Repurchase Agreements, Overnight (47.50%)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 45,000,000 Goldman Sachs Group L.P. (Collateralized by $47,281,159,
GNMAs, 5.500% to 7.000%, due 03/15/29 to 08/20/29, proceeds $45,657,787)
10/01/99 5.40% $ 45,000,000
45,000,000 Solomon Smith Barney (Collateralized by $45,611,733, GNMA, 8.000%,
due 09/15/29, proceeds $45,900,000) 10/01/99 5.32 45,000,000
------------ ------------
90,000,000 Total Repurchase Agreements, Overnight 90,000,000
------------ ------------
Total Investments (100.59%) (Cost $190,587,191+) 190,587,191
Liabilities in Excess of Cash and Other Assets (-0.59%) ( 1,118,419)
-------------
Net Assets (100.00%) $189,468,772
=============
+ 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 daily based on the effective Federal Funds Rate.
(b) This is a variable Federal Home Loan Bank Floating Rate Note. The interest
rate changes monthly based on three month T-Bill BEY plus .70 basis points.
KEY:
GNMA= Government National Mortgage Association
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Tax Exempt Investments (20.98%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,350,000 Arlington County, VA IDA (Arna Valley View Apartments Project)
GIC FGIC Insured 08/01/00 3.60% $ 2,350,000
2,500,000 City of Chicago, IL Single Family Mortgage RB
GIC Trinity Funding 04/01/00 3.25 2,500,000 MIG-1
5,300,000 City of Fall River, MA BAN 03/15/00 3.10 5,308,149 MIG-1
2,885,000 City of Wichita, KS GO 04/27/00 3.15 2,889,787 MIG-1 SP-1+
2,095,000 Commonwealth of Kentucky State & Buildings Commissions RB 05/01/00 3.63 2,101,850
5,000,000 Florida Housing Finance Corporation RB 03/31/00 3.04 5,001,011 VMIG-1 A1+
1,250,000 Illinois Sports Facility Authority RB - Series A
Insured by MBIA Insurance Corp. 06/15/00 3.29 1,255,581
4,000,000 Indiana Bond Bank Advanced
Funding Project Notes - Series 1998A-2 01/19/00 2.94 4,006,225 MIG-1 SP-1+
5,000,000 Kentucky Interlocal School Association TRAN 06/30/00 3.49 5,016,097 MIG-1 SP-1+
3,060,000 Lancaster County, PA
Insured by AMBAC Indemnity Corp. 12/15/99 3.00 3,068,462
4,000,000 Lubbock, TX HFA - Series A
GIC Bayerische Landesbank Girozentrale 05/05/00 3.20 4,000,000 MIG-1
2,000,000 Nashville, TN Metropolitan Nashville Airport
(Tennessee Airports Project) - Series A
Insured by FGIC 07/01/00 3.17 2,041,999
1,000,000 New Mexico State Highway Commission
Senior Subordinate Tax Revenue Highway Bond 06/15/00 3.13 1,006,708
2,000,000 North Dakota HFA (Home Mortgage Finance Project)
GIC Bayerische Landesbank Girozentrale 09/29/00 3.80 2,000,000
3,500,000 North Dakota State HFA RB
GIC AIG 11/01/99 3.11 3,502,589 MIG-1
1,500,000 North Dakota HFA RB - Series C
GIC Trinity Funding 04/01/00 3.20 1,500,000 MIG-1
1,010,000 Northside Independent School District 02/15/00 3.11 1,016,604
5,000,000 State of Texas TRAN 08/31/00 3.64 5,035,381 MIG-1 SP-1+
2,770,000 Town of Odessa, WA BAN - Series 1998 10/15/99 3.70 2,770,000
2,400,000 Whitnall School District RAN 10/28/99 3.06 2,400,687
1,000,000 Wisconsin State Health & Education Authority (Aurora Health Care)
Insured by MBIA Insurance Corp. 08/15/00 3.53 1,007,612
------------ -------------
59,620,000 Total Other Tax Exempt Investments 59,778,742
------------ -------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (b) (54.61%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Adel, GA IDA IDRB (Specialty Stampings, LLC)
LOC National Bank of Canada 06/01/14 4.00% $ 1,000,000 VMIG-1
4,600,000 Arkansas Development Finance Authority
(Conestoga Wood Specialties Project)
LOC First Union National Bank 07/01/08 4.00 4,600,000
5,455,000 Auburn, AL Non-Profit HDA (Lakeside Project)
LOC Columbus Bank & Trust Company 09/01/27 4.10 5,455,000 A1
1,100,000 Butler County, PA IDA (Armco Incorporated Project) - Series 1996A
LOC Chase Manhattan Bank, N.A. 06/01/20 3.95 1,100,000
800,000 Calcasieu Parish, LA (Citgo Petroleum Corporation) - Series 1999
LOC Westdeutsche Landesbank 07/01/26 4.00 800,000 P1 A1+
2,000,000 Calcasieu Parish, LA Public Trust Authority (Solid Waste Disposal)
LOC Morgan Guaranty Trust Company 12/01/27 3.90 2,000,000 A1+
9,390,000 Clipper, HI HFDA 07/24/03 4.03 9,390,000 VMIG-1
2,000,000 Colorado Regional Transportation District
(Transit Vehicles Project) - Series A
LOC State Street Bank & Trust Company 12/01/17 3.75 2,000,000 A1+
3,500,000 Deridder, LA IDRB (Pax Inc. Project)
LOC Bank One 08/01/12 4.05 3,500,000 A1+
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
1,400,000 District of Columbia (Tyler House Trust) - Series 1995A
LOC Landesbank Hessen 08/01/25 3.95 1,400,000 VMIG-1
1,600,000 Florence County, SC (Roche Inc. Project) - Series 1998
LOC Deutsche Bank 04/01/28 3.95 1,600,000 VMIG-1 A1+
7,000,000 Fulco, GA HRB (Shepard Center Inc. Project)
LOC Wachovia Bank & Trust Co., N.A. 09/01/17 3.65 7,000,000 A1+
6,445,000 Fulton County, GA MHRB (Greenhouse Holcomb Project)
Guaranteed by Federal National Mortgage Association 04/01/30 3.75 6,445,000 A1+
1,140,000 Fulton County, GA Development Authority RB
(Darby Printing Company)
LOC Wachovia Bank & Trust Co., N.A. 04/01/11 4.20 1,140,000
700,000 Gulf Coast IDA Marine Terminal
(Amoco Oil Company) - Series 1993 04/01/28 4.00 700,000 VMIG-1 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>
$ 1,200,000 Gulf Coast Waste Disposal Authority Environmental Facilities RB
(Amoco Oil Company) 01/01/26 4.00% $ 1,200,000 VMIG-1 A1+
1,200,000 Jackson County, MS Sewage Facility (Chevron USA Inc. Project) 12/15/24 3.95 1,200,000 P1
3,000,000 Jefferson County, KY Industrial Building
(Fetter Printing Company Project)
LOC PNC Bank, N.A. 05/01/10 3.95 3,000,000
4,000,000 Lebanon, MO IDA IDRB (Durham Company Project)
LOC Commerce Bank 01/01/19 3.95 4,000,000 P1
750,000 Liberty County, GA Industrial Authority (Harbin Lumber Company)
LOC Suntrust Bank 04/01/14 3.95 750,000
1,500,000 Louisville & Jefferson Counties (Airport System) - Series AA
LOC National City Bank 06/30/02 3.90 1,500,000 VMIG-1
1,775,000 Lynchburg, VA IDA (AEROFIN Corp. Project)
LOC PNC Bank, N.A. 03/01/29 3.95 1,775,000
1,100,000 Madison County, IL Environmental Improvement Agency
(Shell Wood River Refining Co.) 03/01/33 3.95 1,100,000 VMIG-1 A1+
6,800,000 Marion County, WV Commission Solid Waste Disposal Facility RB
(Granttown Project)
LOC National Westminster Bank PLC 10/01/17 3.90 6,800,000 VMIG-1 A1+
700,000 New Albany, IN EDA RB (Bert R. Huncilman & Son) - Series A
LOC PNC Bank, N.A 04/01/06 3.95 700,000
8,000,000 New York City Housing Development Corporation
Multifamily Mortgage (Brittany)
Guaranteed by Federal National Mortgage Association 06/15/29 3.80 8,000,000 A1+
10,000,000 New York City Housing Development Corporation
Multifamily Mortgage (Broadway)
LOC Bayerische HypoVereinsbank 12/01/31 3.75 10,000,000 A1+
2,100,000 North Texas Higher Education Authority Student Loan RB - Series C
Insured by AMBAC Indemnity Corp. 04/01/36 3.90 2,100,000 VMIG-1
2,100,000 Ocean Highway and Port Authority, FL
Port, Airport, and Marina Improvement
LOC ABN AMRO Bank 12/01/20 3.90 2,100,000 VMIG-1 A1+
10,100,000 Ohio State Solid Waste RB (BP Exploration & Oil Project) 02/01/33 4.00 10,100,000 P1 A1+
2,400,000 Ouachita Parish, LA IDB (EPCO Carbondioxide Project)
LOC Bank One 02/01/05 4.05 2,400,000 P1
425,000 Pennsylvania EDFA (Tri State Hyraulics Inc.) - Series 1996D-7
LOC PNC Bank, N.A. 08/01/06 3.95 425,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
(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>
$ 2,000,000 Pennsylvania EDFA RB (Trigon Incorporated)
LOC PNC Bank, N.A. 08/01/05 3.95% $ 2,000,000
1,300,000 Pennsylvania EDFA (Plastikos Reality Project) - Series 1997E
LOC PNC Bank, N.A. 11/01/12 3.95 1,300,000
2,500,000 Port of Corpus Christie Nueces County, TX
(Koch Refining Co.) - Series 1995A 05/01/25 3.75 2,500,000 VMIG-1 A1+
1,200,000 Portland, OR IDRB (Oregon Transfer Company)
LOC US National Bank of Oregon 11/01/01 4.37 1,200,000
2,490,000 Prattville, AL IDRB (Merchant Realty Co.)
LOC Amsouth Bank 03/01/26 4.05 2,490,000 A1
1,350,000 Richmond, GA Solid Waste RB (Evergreen Nylon Recycling)
LOC Banque National de Paris 07/01/32 3.75 1,350,000 P1 A1
4,000,000 South Carolina Jobs EDA RB (Village Blacksmith Inc. Project)
LOC Marshall & Ilsley 04/01/14 3.95 4,000,000
5,000,000 South Texas Higher Education Authority
Insured by MBIA Insurance Corp. 12/01/03 3.80 5,000,000 VMIG-1
900,000 Southwestern Illinois Development Authority Sold Waste Disposal
(Shell Oil Co. Wood River) 04/01/22 3.95 900,000 VMIG-1 A1+
1,400,000 Southwestern Illinois Development Authority Sold Waste Disposal
(Shell Oil Co. Wood River) 11/01/25 3.95 1,400,000 VMIG-1 A1+
7,000,000 Sussex County, DE IDRB (Perdue Farms Inc. Project) - Series 1992
LOC Rabobank Nederland 04/01/12 3.95 7,000,000
1,715,000 Talbot County, GA Development Authority IDRB
(Douglas Asphalt Company Project)
LOC First Union National Bank 04/01/08 3.95 1,715,000
3,940,000 Town of York, ME (Stonewall Realty LLC Project)
LOC Citizen Bank of Rhode Island 06/01/19 4.00 3,940,000 VMIG-1
5,300,000 Washington State HFC MHRB (Wadering Creek Project)
LOC Bank of America 01/01/26 4.10 5,300,000 VMIG-1
750,000 Westmoreland County, PA IDRB (Solidur Plastics Estate Project)
LOC PNC Bank, N.A. 12/01/02 3.95 750,000
1,250,000 York County, PA IDA Limited Obligation RB
(Metal Exchange Corporation Project) - Series 1996
LOC Comerica Bank 06/01/06 3.95 1,250,000
------------ -------------
155,625,000 Total Other Variable Rate Demand Instruments 155,625,000
------------ -------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Put Bonds (c) (7.25%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 545,000 Arkansas Development Finance Authority
(Single Family Mortgage RB)
Insured by FGIC 03/01/00 3.00% $ 545,000 A1+
1,620,000 Dayton, KY Building RB - Series 1994C
LOC Fifth Third Bank 10/01/99 3.35 1,620,000
6,500,000 Hartford County, MD IDRB (A.O. Smith)
LOC Bank One 03/01/00 3.70 6,500,000
4,000,000 Louisiana HFA Single Family Mortgage RB - Series C
GIC Trinity Funding 06/01/00 3.35 4,000,000 MIG-1 SP-1+
1,000,000 Michigan Strategic Fund (Donnelly Corp. Project) - Series 1988
LOC Dresdner Bank A.G. 10/01/99 3.50 1,000,000 P1 A1+
4,000,000 New Hampshire Business Finance Authority PCRB
(New England Power Company) 10/26/99 3.40 4,000,000
2,990,000 Vermont State Educational & Health Building Finance Agency
(Middlebury College) 11/01/99 3.10 2,990,000 A1+
------------ -------------
20,655,000 Total Put Bonds 20,655,000
------------ -------------
<CAPTION>
Tax Exempt Commercial Paper (12.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 6,600,000 Anne Arundel EDRB (Baltimore Gas & Electric Company Project)
LOC Chase Manhattan Bank, N.A./Bank of New York 10/04/99 3.30% $ 6,600,000 VMIG-1 A1
1,500,000 Anne Arundel EDRB (Baltimore Gas & Electric Company Project)
LOC Chase Manhattan Bank, N.A./Bank of New York 10/05/99 3.25 1,500,000 VMIG-1 A1
5,700,000 Anne Arundel EDRB (Baltimore Gas & Electric Company Project)
LOC Chase Manhattan Bank, N.A./Bank of New York 01/26/00 3.55 5,700,000 VMIG-1 A1
2,000,000 City & County of Denver, CO Airport System Subordinate RB - Series 1997A
LOC Bayerische Landesbank Girozentrale 01/18/00 3.55 2,000,000 P1 A1+
2,000,000 Lee County, FL Hospital Board HRB
(Lee Memorial Hospital Project) 11/10/99 3.35 2,000,000 VMIG-1 A1+
4,000,000 Lee County, FL Hospital Board HRB
(Lee Memorial Hospital Project) 01/20/00 3.70 4,000,000 VMIG-1 A1+
4,000,000 North Carolina Municipal Power Agency (Catawba Project)
LOC Morgan Guaranty Trust Company/Union Bank of Switzerland 10/08/99 4.00 4,000,000 P1 A1+
3,000,000 Ohio Water Development Authority PCRB (Duquesne Light Control)
LOC Toronto-Dominion Bank 10/04/99 3.40 3,000,000 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 1999
(UNAUDITED)
================================================================================
<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 1990A
LOC National Westminster Bank PLC 10/13/99 3.30% $ 2,500,000 P1 A1+
2,000,000 Venango, PA IDA Resource Recovery RB
(Scrubgrass Project) - Series B
LOC National Westminster Bank PLC 01/18/00 3.55 2,000,000 P1 A1+
1,700,000 West Virginia Public Energy Authority Energy RB
(Morgantown Energy Assoc. Project) - Series 1989A
LOC Union Bank of Switzerland 10/06/99 3.35 1,700,000 P1 A1+
------------ -------------
35,000,000 Total Tax Exempt Commercial Paper 35,000,000
------------ -------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (0.70%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 P1 A1
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) (4.22%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 4.50% $ 9,100,000
630,000 Jefferson County, MO IDA IDRB (Holley Partnership)
LOC Chase Manhattan Bank, N.A. 12/01/04 5.36 630,000 P1 A1
220,307 New Jersey State EDA IDRB (Heary Modelle & Company)
LOC Chase Manhattan Bank, N.A. 09/01/00 5.36 220,307 P1 A1
2,062,000 York County, PA IDA IDRB (Manor Care of Kingston Court Inc.)
LOC Chase Manhattan Bank, N.A. 12/01/08 5.36 2,062,000 P1 A1
------------ -------------
12,012,307 Total Variable Rate Demand Instruments - Private Placements 12,012,307
------------ -------------
Total Investments (100.04%) (Cost $285,071,049+) 285,071,049
Liabilities in Excess of Cash and Other Assets (-0.04%) ( 102,427)
-------------
Net Assets (100.00%) $ 284,968,622
=============
+ 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, 1999
(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>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note HFDA = Housing Finance Development Authority
EDA = Economic Development Authority HRB = Hospital Revenue Bond
EDFA = Economic Development Finance Authority IDA = Industrial Development Authority
EDRB = Economic Development Revenue Bond IDB = Industrial Development Bond
FGIC = Financial Guaranty Insurance Company IDRB = Industrial Development Revenue Bond
GIC = Guaranteed Investment Contract LOC = Letter of Credit
GO = General Obligation MHRB = Multi-Family Housing Revenue Bond
HDA = Housing Development Authority PCRB = Pollution Control Revenue Bond
HFA = Housing Finance Authority RAN = Revenue Anticipation Note
HFC = Housing Finance Commission RB = Revenue Bond
TRAN = Tax and Revenue Anticipation Note
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
ASSETS:
<S> <C> <C> <C>
Investments in securities*............ $ 1,642,414,114 $ 190,587,191 $ 285,071,049
Cash.................................. 6,904,799 248,066 --
Interest receivable................... 10,378,664 913,025 1,798,387
Other assets.......................... -- -- --
----------------- --------------- ---------------
Total Assets...................... 1,659,697,577 191,748,282 286,869,436
<CAPTION>
LIABILITIES:
<S> <C> <C> <C>
Dividends payable..................... 203,701 22,790 22,190
Due to custodian...................... -- -- 1,576,707
Payable for securities purchased...... 9,707,500 2,000,000 --
Payable for shares redeemed........... 1,426,476 110,450 90,186
Other accounts payable................ 1,381,034 146,270 211,731
---------------- -------------- --------------
Total Liabilities................. 12,718,711 2,279,510 1,900,814
---------------- -------------- --------------
<CAPTION>
NET ASSETS.............................. $ 1,646,978,866 $ 189,468,772 $ 284,968,622
================= =============== ===============
<CAPTION>
SHARES OUTSTANDING:
<S> <C> <C> <C>
Cortland Shares....................... 796,960,659 67,301,696 54,572,186
Live Oak Shares....................... 851,791,795 67,397,429 54,740,349
Bradford Shares....................... -- 55,028,669 175,677,555
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 $42,000,000 and $90,000,000
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, 1999
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
INVESTMENT INCOME
<S> <C> <C> <C>
Interest Income......................... $ 40,721,670 $ 4,937,640 $ 5,097,314
----------------- ---------------- -----------------
Expenses:
Management fee--Note 3(a)............ 6,020,406 757,166 1,140,815
Distribution support and services
----Note 3(c):
Cortland shares.................. 930,867 81,178 71,595
Live Oak shares.................. 837,477 76,178 60,999
Bradford shares.................. -- 72,315 226,896
Other expenses....................... 85,311 20,723 31,310
----------------- ---------------- -----------------
Total Expenses................... 7,874,061 1,007,560 1,531,615
----------------- ---------------- -----------------
Expenses waived by
Manager--Note 3(c)................... ( 80,892) ( 86,578) ( 174,245)
----------------- ---------------- -----------------
Net Expenses..................... 7,793,169 920,982 1,357,370
----------------- ---------------- -----------------
Net Investment Income................... 32,928,501 4,016,658 3,739,944
<CAPTION>
NET REALIZED GAIN
ON INVESTMENTS
<S> <C> <C> <C>
Net realized gain on investments........ 10,360 1,025 --
----------------- ---------------- ----------------
Increase in net assets from operations.. $ 32,938,861 $ 4,017,683 $ 3,739,944
================= ================ ================
</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
1999 March 31, 1999 March 31, 1999 March 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
--------- ---------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income... $ 32,928,501 $ 55,494,037 $ 4,016,658 $ 7,643,500 $ 3,739,944 $ 7,673,266
Net realized gain on
investments........... 10,360 446,452 1,025 21,372 -- 3,195
------------ ------------ ------------ ------------ ------------ ------------
Increase in net assets
from operations...... 32,938,861 55,940,489 4,017,683 7,664,872 3,739,944 7,676,461
Distributions
to shareholders from:
Net investment income:
Cortland shares....... ( 15,493,894) ( 25,151,926) ( 1,288,996) ( 2,235,590) ( 688,867)+ ( 1,191,766)+
Live Oak shares....... ( 17,515,500) ( 30,731,761) ( 1,540,355) ( 3,092,403) ( 736,230)+ ( 1,664,742)+
Bradford shares....... -- -- ( 1,189,269) ( 2,336,645) ( 2,314,847)+ ( 4,816,758)+
Capital share
transactions net (Note 4):
Cortland shares....... 136,307,540 154,411,380 2,782,849 16,374,315 5,335,193 1,452,471
Live Oak shares....... 38,035,839 202,978,164 ( 11,688,730) 12,157,220 ( 15,388,266) 2,426,549
Bradford shares....... -- -- ( 7,147,862) 10,509,430 ( 7,164,835) 10,512,085
------------ ------------ ------------ ------------ ------------ ------------
Total increase (decrease) 174,272,846 357,446,346 ( 16,054,680) 39,041,199 ( 17,217,908) 14,394,300
Net assets:
Beginning of period..... 1,472,706,020 1,115,259,674 205,523,452 166,482,253 302,186,530 287,792,230
-------------- ------------- ------------ ------------ ------------ ------------
End of period........... $1,646,978,866 $1,472,706,020 $189,468,772 $202,523,452 $284,968,622 $302,186,530
============== ============== ============ ============ ============ ============
Undistributed net
investment income..... $ 64,760 $ 145,653 $ 404,177 $ 406,139 $ -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, 1999, there
were 26,422,407 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>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
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, 1999, Cortland General Fund, U.S. Government
Fund and Municipal Fund had unused capital loss carryforwards of
approximately $1,848,708, $686,669 and $28,940 respectively, available for
Federal income tax purposes to be applied against future securities profit,
if any. If not applied against future securities profits, $243,842 and
$1,604,866 will expire in the years 2003 and 2004, respectively, for
Cortland General Fund. $235,428 and $451,241 will expire in the years 2003
and 2004, respectively for the U.S. Government Fund. $13,541, $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>
- --------------------------------------------------------------------------------
================================================================================
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, 1999, the Distributor waived Distribution
support and services fees of $80,892 for the Cortland shares of the Cortland
General Fund.
During the period ended September 30, 1999, the Distributor waived Distribution
support and services fees of $10,350, $23,570 and $52,658 for the Cortland
shares, Live Oak shares and Bradford shares, respectively, of the U.S.
Government Fund.
During the period ended September 30, 1999, the Distributor waived Distribution
support and services fees of $9,099 and $165,146 for the Cortland shares, and
Bradford shares, respectively, of the Municipal Fund.
Note 4-Capital Share Transactions:
At September 30, 1999, 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, 1999 March 31, September 30, 1999 March 31, September 30, 1999 March 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ---------- ------------- -------- ------------- --------
Cortland Shares
<S> <C> <C> <C> <C> <C> <C>
Shares sold.......... 1,328,866,743 2,036,496,592 84,635,453 163,731,205 107,999,952 195,007,740
Dividends reinvested. 15,505,519 25,195,494 1,291,205 2,241,098 688,499 1,193,378
------------- ------------- ----------- ------------ ------------- -------------
1,344,372,262 2,061,692,086 85,926,658 165,972,303 108,688,451 196,201,118
Shares redeemed...... (1,208,064,722) (1,907,280,706) ( 83,143,809) ( 149,597,988) ( 103,353,258) ( 194,748,647)
------------- ------------- ----------- ------------ ------------- -------------
Net increase(decrease) 136,307,540 154,411,380 2,782,849 16,374,315 5,335,193 1,452,471
============= ============= =========== ============ ============= =============
Live Oak Shares
Shares sold.......... 2,208,379,316 3,636,474,938 164,979,822 397,622,269 117,954,669 287,227,233
Dividends reinvested. 17,464,883 30,668,616 1,535,478 3,078,766 733,944 1,661,013
------------- ------------- ----------- ------------ ------------- -------------
2,225,844,199 3,667,143,554 166,515,300 400,701,035 118,688,613 288,888,246
Shares redeemed...... (2,187,808,360) (3,464,165,390) (178,204,030) ( 388,543,815) ( 134,076,879) ( 286,461,697)
------------- ------------- ----------- ------------ ------------- -------------
Net increase(decrease) 38,035,839 202,978,164 ( 11,688,730) 12,157,220 ( 15,388,266) 2,426,549
============= ============= =========== ============ ============= =============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
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, 1999 March 31, September 30, 1999 March 31,
(Unaudited) 1999 (Unaudited) 1999
-------------- -------------- ------------- -------------
Bradford Shares+
<S> <C> <C> <C> <C>
Shares sold................ 73,867,790 250,607,502 394,499,507 732,865,165
Dividends reinvested....... 1,192,178 2,343,573 2,314,852 4,822,037
------------- ------------- ------------- -------------
75,059,968 252,951,075 396,814,359 737,687,202
Shares redeemed............ ( 82,207,830) ( 242,441,645) ( 403,979,194) ( 727,175,117)
------------- ------------- ------------- -------------
Net increase .............. ( 7,147,862) 10,509,430 ( 7,164,835) 10,512,085
============= ============= ============= =============
The components of net assets at September 30, 1999 are as follows:
<CAPTION>
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
---------------------- -------------------- ----------------------
September 30, 1999 September 30, 1999 September 30, 1999
(Unaudited) (Unaudited) (Unaudited)
--------- --------- ---------
<S> <C> <C> <C>
Paid-in capital...... $1,648,752,454 $ 189,727,794 $ 284,990,090
Accumulated net
realized losses.. ( 1,838,348) ( 663,199) ( 21,468)
Undistributed net
investment income 64,760 404,177 -0-
-------------- -------------- ---------------
Total net assets..... $1,646,978,866 $ 189,468,772 $ 284,968,622
============== ============== ===============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights:
Cortland General Money Market Fund
----------------------------------------------------------------------------------------
Cortland Shares
----------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1999 ------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
--------- --------- -------- -------- -------- ----------
<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...... 0.021 0.045 0.047 0.044 0.049 0.038
Net realized and unrealized
gain/(loss) on investments -- 0.001 ( 0.001) -- 0.001 ( 0.003)+
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.021 0.046 0.046 0.044 0.050 0.035
Less distributions:
Dividends from net
investment income......... ( 0.021) ( 0.045) ( 0.047) ( 0.044) ( 0.048) ( 0.038)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions........... ( 0.021) ( 0.045) ( 0.047) ( 0.044) ( 0.048) ( 0.038)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
Total Return.................. 4.23%* 4.56% 4.77% 4.52% 4.95% 3.91%+
Ratios/Supplemental Data
Net assets,
end of period (000s omitted) $ 796,103 $ 659,890 $ 505,442 $1,160,352 $1,159,173 $ 993,854
Ratios to average net assets:
Expenses.................. 1.00%* 1.00% 0.99% 1.02% 1.03% 1.03%
Net investment income..... 4.15%* 4.41% 4.67% 4.41% 4.86% 3.85%
Management and Distribution support
and service fees waived. 0.02%* 0.03% 0.04% -- -- 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>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<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,
1999 ---------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996+
--------- --------- -------- -------- --------
<S> <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
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income...... 0.021 0.045 0.048 0.045 0.018
Net realized and unrealized
gain/(loss) on investments -- 0.001 ( 0.001) -- --
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.021 0.046 0.047 0.045 0.018
Less distributions:
Dividends from net
investment income......... ( 0.021) ( 0.045) ( 0.047) ( 0.045) ( 0.018)
---------- ---------- ---------- ---------- ----------
Total distributions........... ( 0.021) ( 0.045) ( 0.047) ( 0.045) ( 0.018)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return.................. 4.26%* 4.59% 4.84% 4.59% 4.78%*
Ratios/Supplemental Data
Net assets,
end of period (000s omitted) $ 850,876 $ 812,816 $ 609,812 $ 440,457 $ 351,030
Ratios to average net assets:
Expenses.................. 0.97%* 0.98% 0.91% 0.95% 0.97%*
Net investment income..... 4.17%* 4.43% 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>
- --------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
----------------------------------------------------------------------------------------
Cortland Shares
----------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1999 ------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
--------- --------- -------- -------- -------- ----------
<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........ 0.020 0.042 0.046 0.043 0.047 0.038
Net realized and unrealized
(loss) on investments...... -- 0.001 ( 0.001) ( 0.001) -- ( 0.003)+
------- ------- ------- ------- ------- -------
Total from investment operations 0.020 0.043 0.045 0.047 0.047 0.035
Less distributions:
Dividends from net
investment income.......... ( 0.020) ( 0.042) ( 0.045) ( 0.043) ( 0.047) ( 0.038)
-------- -------- -------- -------- -------- --------
Less distributions........... ( 0.020) ( 0.042) ( 0.045) ( 0.043) ( 0.047) ( 0.038)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return................. 4.04%* 4.33% 4.61% 4.37% 4.80% 3.84%+
Ratios/Supplemental Data
Net assets,
end of period (000's omitted) $ 67,210 $ 64,438 $ 48,069 $ 164,464 $ 255,222 $218,307
Ratios to average net assets:
Expenses................... 1.00%* 1.00% 0.81% 1.01% 1.04% 1.04%
Net investment income...... 3.97%* 4.18% 4.58% 4.30% 4.72% 3.74%
Management and Distribution support
and service fees waived. 0.03%* 0.04% 0.25% 0.02% -- 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>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
U.S. Government Fund
----------------------------------------------------------------------------------------
Live Oak Shares
----------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1999 ------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996+
--------- --------- -------- -------- --------
<S> <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
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income...... 0.020 0.043 0.049 0.044 0.017
Net realized and unrealized
gain/(loss) on investments -- 0.001 ( 0.001) ( 0.001) --
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.020 0.044 0.048 0.043 0.017
Less distributions:
Dividends from net
investment income......... ( 0.020) ( 0.043) ( 0.046) ( 0.044) ( 0.017)
---------- ---------- ---------- ---------- ----------
Total distributions........... ( 0.020) ( 0.043) ( 0.046) ( 0.044) ( 0.017)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return.................. 4.12%* 4.42% 4.75% 4.53% 4.74%*
Ratios/Supplemental Data
Net assets,
end of period (000s omitted) $ 67,305 $ 78,987 $ 66,829 $ 55,057 $ 47,328
Ratios to average net assets:
Expenses.................. 0.92%* 0.91% 0.68% 0.86% 0.89%*
Net investment income..... 4.04%* 4.29% 4.89% 4.45% 4.64%*
Management and Distribution support
and service fees waived. 0.06%* 0.08% 0.24% 0.12% 0.11%*
* Annualized
+ Live Oak shares commenced distribution on November 16, 1995.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
----------------------------------------------------------------------------------------
Bradford Shares
----------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1999 ------------------------------------------------------------------------
(Unaudited) 1999 1998+
--------- -------- --------
<S> <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
---------- ---------- ----------
Income from investment operations:
Net investment income...... 0.021 0.044 0.026
Net realized and unrealized
gain/(loss) on investments -- 0.001 ( 0.001)
---------- ---------- ----------
Total from investment operations 0.021 0.045 0.025
Less distributions:
Dividends from net
investment income......... ( 0.021) ( 0.044) ( 0.024)
---------- ---------- ----------
Total distributions........... ( 0.021) ( 0.044) ( 0.024)
---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
========== ========== ==========
Total Return.................. 4.19%* 4.49% 4.83%
Ratios/Supplemental Data
Net assets,
end of period (000s omitted) $ 54,954 $ 62,098 $ 51,584
Ratios to average net assets:
Expenses.................. 0.85%* 0.85% 0.86%*
Net investment income..... 4.11%* 4.37% 5.22%*
Management and Distribution support
and service fees waived. 0.18%* 0.19% 0.18%*
* Annualized
+ Bradford shares commenced distribution on October 1, 1997.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Municipal Money Market
----------------------------------------------------------------------------------------
Cortland Shares
----------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1999 ------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
--------- --------- -------- -------- -------- ----------
<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........ 0.012 0.025 0.028 0.026 0.030 0.026
------- ------- ------- ------- ------- -------
Total from investment operations 0.012 0.025 0.028 0.026 0.030 0.026
Less distributions:
Dividends from net
investment income.......... ( 0.012) ( 0.025) ( 0.028) ( 0.026) ( 0.030) ( 0.026)
-------- -------- -------- -------- -------- --------
Total distributions.......... ( 0.012) ( 0.025) ( 0.028) ( 0.026) ( 0.030) ( 0.026)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return................. 2.43%* 2.56% 2.81% 2.68% 3.06% 2.58%
Ratios/Supplemental Data
Net assets,
end of period (000's omitted) $ 54,568 $ 49,234 $ 47,780 $ 153,322 $ 216,456 $224,041
Ratios to average net assets:
Expenses................... 1.00%* 1.00% 1.01% 1.02% 1.03% 0.99%
Net investment income...... 2.41%* 2.51% 2.81% 2.64% 3.02% 2.54%
Management and Distribution support
and service fees waived. 0.03%* 0.04% -- -- -- 0.06%
* Annualized
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
Municipal Money Market
----------------------------------------------------------------------------------------
Live Oak Shares
----------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1999 ------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996+
--------- --------- -------- -------- --------
<S> <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
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income...... 0.012 0.026 0.029 0.027 0.011
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.012 0.026 0.029 0.027 0.011
Less distributions:
Dividends from net
investment income......... ( 0.012) ( 0.026) ( 0.029) ( 0.027) ( 0.011)
---------- ---------- ---------- ---------- ----------
Total distributions........... ( 0.012) ( 0.026) ( 0.029) ( 0.027) ( 0.011)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return.................. 2.45%* 2.60% 2.93% 2.77% 2.96%*
Ratios/Supplemental Data
Net assets,
end of period (000s omitted) $ 54,736 $ 70,124 $ 67,697 $ 58,794 $ 49,663
Ratios to average net assets:
Expenses.................. 0.98%* 0.95% 0.90% 0.93% 0.96%*
Net investment income..... 2.41%* 2.57% 2.86% 2.72% 2.91%*
Management and Distribution support
and service fees waived. -- 0.03% 0.07% 0.04% 0.03%*
* 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
----------------------------------------------------------------------------------------
Bradford Shares
----------------------------------------------------------------------------------------
Six Months Ended
September 30, For the Year Ended March 31,
1999 ------------------------------------------------------------------------
(Unaudited) 1999 1998+
--------- -------- --------
<S> <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
---------- ---------- ----------
Income from investment operations:
Net investment income...... 0.013 0.027 0.014
---------- ---------- ----------
Total from investment operations 0.013 0.027 0.014
Less distributions:
Dividends from net
investment income......... ( 0.013) ( 0.027) ( 0.014)
---------- ---------- ----------
Total distributions........... ( 0.013) ( 0.027) ( 0.014)
---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
========== ========== ==========
Total Return.................. 2.58%* 2.71% 2.87%
Ratios/Supplemental Data
Net assets,
end of period (000s omitted) $ 175,664 $ 182,829 $ 172,315
Ratios to average net assets:
Expenses.................. 0.85%* 0.85% 0.86%*
Net investment income..... 2.55%* 2.67% 2.81%*
Management and Distribution support
and service fees waived. 0.18%* 0.18% 0.17%*
* Annualized
+ 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, 1999
CORTLAND
600 Fifth Avenue
New York, NY 10020
212-830-5200
- --------------------------------------------------------------------------------
<PAGE>
