<PAGE>
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CORTLAND 600 Fifth Avenue
TRUST, INC. New York, NY 10020
212-830-5200
================================================================================
Dear Shareholder:
We are pleased to present the annual report of Cortland Trust, Inc. for the year
ended March 31, 1999.
The Cortland General Money Market Fund had 101,664 shareholder accounts and net
assets of $1,472,706,020 as of March 31, 1999.
As of March 31, 1999, the U.S. Government Fund had 7,167 shareholder accounts
and net assets of $205,523,452.
As of March 31, 1999, the Municipal Money Market Fund had 2,728 shareholder
accounts and net assets of $302,186,530.
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
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<PAGE>
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CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-------------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Commercial Paper (24.21%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 15,000,000 Bank of America 05/20/99 5.08% $ 14,898,937 P1 A1+
15,000,000 Bank of America 05/25/99 5.03 14,889,750 P1 A1+
60,000,000 Lehman Brothers Holdings Inc. 04/07/99 4.94 59,950,800 P2 A1
10,000,000 Lehman Brothers Holdings Inc. 04/22/99 4.92 9,971,417 P2 A1
10,000,000 National Bank of Detroit 06/17/99 5.01 9,895,194 P1 A1
40,000,000 Paine Webber Group 04/05/99 5.02 39,977,778 P2 A2
15,000,000 Receivable Capital Corporation 04/07/99 4.88 14,987,825 P1 A1+
53,925,000 Sand Dollar Funding L.L.C. 04/08/99 4.98 53,873,412 P1 A1+
14,000,000 Sigma Finance Corporation 04/14/99 4.88 13,975,632 P1 A1+
30,000,000 Sigma Finance Corporation 05/24/99 4.88 29,788,000 P1 A1+
15,000,000 Sigma Finance Corporation 06/10/99 4.91 14,858,542 P1 A1+
15,000,000 Special Purpose Accounts Receivables Cooperative 04/14/99 4.90 14,973,567 P1 A1
20,000,000 Special Purpose Accounts Receivables Cooperative 06/25/99 4.94 19,769,555 P1 A1
25,000,000 Spice Trust 1 04/27/99 4.96 24,910,805 P1
20,000,000 Superior Funding Capital Corporation 06/15/99 4.94 19,796,667 P1 A1+
------------ ------------
357,925,000 Total Commercial Paper 356,517,881
------------ ------------
<CAPTION>
Domestic Certificates of Deposit (4.07%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 Chase Manhattan Bank 04/07/99 5.12% $ 20,000,000 P1 A1+
10,000,000 First Union National Bank 09/17/99 5.25 10,000,000 P1 A1
30,000,000 NationsBank 10/19/99 4.61 30,000,000 P1 A1+
------------ ------------
60,000,000 Total Domestic Certificates of Deposit 60,000,000
------------ ------------
<CAPTION>
Letter of Credit Commercial Paper (27.41%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 AES Shady Point Inc.
LOC NationsBank 07/23/99 4.88% $ 19,701,178 P1 A1+
10,000,000 Banca Serfin S.A.
LOC Barclays Bank PLC 08/26/99 5.40 9,790,525 P1 A1+
10,000,000 Banco Bozano Simonsen S.A.
LOC Banco Santander 06/22/99 5.07 9,888,389 P1 A1+
9,000,000 Banco de Credito Nacional, S.A.
LOC Barclays Bank PLC 04/23/99 5.09 8,972,390 P1 A1+
10,000,000 Banco Mercantil del Norte, S.A.
LOC Bayerische HypoVereinsbank, A.G. 05/05/99 5.33 9,951,361 P1 A1+
10,000,000 Banco Mercantil del Norte, S.A.
LOC Bayerische HypoVereinsbank, A.G. 08/03/99 5.03 9,830,189 P1 A1+
20,000,000 Banco Mercantil del Norte, S.A.
LOC Bayerische HypoVereinsbank, A.G. 09/24/99 5.00 19,528,711 P1 A1+
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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================================================================================
<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 Bancomer, S.A.
LOC Bank of Montreal 06/10/99 5.12% $ 9,903,750 P1 A1+
15,000,000 Bancomer, S.A.
LOC Bank of Montreal 06/18/99 5.00 14,843,025 P1 A1+
15,000,000 Bancomer, S.A.
LOC Bank of Montreal 06/24/99 5.07 14,828,500 P1 A1+
10,000,000 China International Marine Containers
LOC Societe Generale 04/08/99 4.89 9,990,531 P1 A1+
10,000,000 ContiFinancial Corporation
LOC Dresdner Bank, A.G. 07/06/99 4.90 9,872,000 P1 A1+
16,910,000 Daewoo International Corporation
LOC Credit Suisse First Boston 04/29/99 4.96 16,845,817 P1 A1+
10,000,000 Demir Funding Corporation
LOC Bayerische HypoVereinsbank, A.G. 04/12/99 4.96 9,985,028 P1 A1+
25,000,000 Dixie Overseas Ltd.
LOC Credit Agricole 04/23/99 4.91 24,925,292 P1 A1+
20,000,000 Finans Funding Corporation II
LOC Rabobank Nederland 06/03/99 4.96 19,828,500 P1 A1+
20,000,000 Minmetals Capitals & Securities Incorporated
LOC Credit Suisse First Boston 04/20/99 5.06 19,948,067 P1 A1+
17,750,000 Pactual Overseas
LOC Barclays Bank PLC 05/12/99 4.94 17,651,349 P1 A1+
15,000,000 Pactual Overseas
LOC Barclays Bank PLC 05/13/99 4.90 14,916,525 P1 A1+
25,000,000 Pemex Capital, Inc.
LOC Societe Generale 04/19/99 4.89 24,939,625 P1 A1+
25,000,000 Pemex Capital, Inc.
LOC Societe Generale 05/03/99 4.86 24,893,333 P1 A1+
10,000,000 Pemex Capital, Inc.
LOC Societe Generale 05/27/99 4.95 9,923,933 P1 A1+
20,000,000 Transportadora de Gas del Sur S.A.
LOC Dresdner Bank, A.G. 04/19/99 4.91 19,951,500 P1 A1+
20,000,000 Transportadora de Gas del Sur S.A.
LOC Dresdner Bank, A.G. 04/20/99 4.90 19,948,911 P1 A1+
18,000,000 Unibanco-Uniao de Bancos Brasilieros
LOC Bayerische HypoVereinsbank, A.G. 04/21/99 5.07 17,950,000 P1 A1+
15,000,000 Unibanco-Uniao de Bancos Brasilieros
LOC Westdeutsche Landesbank 06/28/99 4.95 14,822,900 P1 A1+
------------ ------------
406,660,000 Total Letter of Credit Commercial Paper 403,631,329
------------ ------------
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
------------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Loan Participations (4.68%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 29,000,000 Equitable Life Assurance Society (b)
LOC Chase Manhattan Bank 03/20/00 5.05% $ 29,000,000 P1 A1
30,000,000 GMAC Mortgage Corporation (c)
LOC Bank One 04/01/99 5.27 30,000,000 P1 A1+
10,000,000 Marsh & McLennan Companies (d) 05/24/99 5.05 10,000,000 P1 A1+
------------ ------------
69,000,000 Total Loan Participations 69,000,000
------------ ------------
<CAPTION>
Master Notes (4.75%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 The Goldman Sachs Group L.P. (e) 10/19/99 4.87% $ 20,000,000 P1 A1+
50,000,000 Willamette Industries, Incorporated (f) 06/18/99 5.00 50,000,000
------------ ------------
70,000,000 Total Master Notes 70,000,000
------------ ------------
<CAPTION>
Medium Term Note (2.38%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 35,000,000 Structured Enhanced Return Trust - STEERS 1999
Series A-40 (g)
MBIA Insured 01/18/00 5.04% $ 35,000,000 P1 A1+
------------ ------------
35,000,000 Total Medium Term Note 35,000,000
------------ ------------
<CAPTION>
Other Notes (23.17%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,575,000 2150 Investment Company - Series 1997 (h)
LOC Fifth Third Bank 02/01/17 4.95% $ 2,575,000
4,150,000 Alabama State IDA (Central Casting Corporation) (h)
LOC First Union National Bank of North Carolina 11/01/15 5.00 4,150,000
3,620,000 Albany Dougherty, GA Payroll IDA
(Flint River Service, Inc. Project-B) (h)
LOC Columbus Bank & Trust Company 05/01/17 5.04 3,620,000 A1
1,785,000 Andrews Laser Works Corporation (h)
LOC Star Bank, N.A. 05/01/08 4.97 1,785,000
1,710,000 Berkeley Square Retirement Center - Series 1998 (h)
LOC Fifth Third Bank 02/01/13 4.95 1,710,000
5,800,000 Cheney Brothers Incorporated (h)
LOC First Union National Bank of North Carolina 12/01/16 5.00 5,800,000
9,575,000 Community Development Authority of the City of Madison, WI RB
(Blake '89 Project) - Series 1996A (h) 01/01/19 4.95 9,575,000
9,400,000 The Concrete Company - Series 1998 (h)
LOC Columbus Bank & Trust Company 07/01/48 5.05 9,400,000 A1
1,980,000 Consolidated Equities, L.L.C. - Series 1995 (h)
LOC Old Kent Bank & Trust Company 12/01/25 4.95 1,980,000
4,000,000 Cunat Capital Corporation
(Cunat Brothers, Incorporated/Irish Parie L.P.) - Series 1997B (h)
LOC LaSalle National Bank 06/01/27 4.95 4,000,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-------------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,785,000 Delta Capital L.L.C. - Series A (h)
LOC First Michigan Bank 01/01/26 4.95% $ 1,785,000
2,870,000 Devin F. & Janis L. McCarthy - Series 1997 (h)
LOC Star Bank, N.A. 07/01/17 4.97 2,870,000
5,000,000 Douglas County, GA Development Authority
(Abrams Riverside, LLC Project) (h)
LOC Bank of America 11/01/18 5.05 5,000,000
25,000,000 First Union National Bank of North Carolina (i) 07/16/99 4.85 25,000,000 P1 A1
2,295,000 G&J Land Management - Series 1996 (h)
LOC Fifth Third Bank 12/01/17 4.95 2,295,000
15,538,311 General Electric Engine Receivables 1995-1
Trust VR Guaranteed Notes (j) 02/14/00 4.92 15,538,311 P1 A1+
3,970,840 General Electric Engine Receivables 1996-1
Trust VR Guaranteed Notes (k) 02/14/01 4.92 3,970,840 P1 A1+
35,000,000 The Goldman Sachs Group, L.P. (l) 04/11/00 5.03 35,000,000 P1 A1+
10,985,000 Institutional Distributors, Incorporated - Series 1997 (h)
LOC Star Bank, N.A. 06/01/17 4.97 10,985,000
1,000,000 Jake Sweeney Automotive, Incorporated (h)
LOC Star Bank, N.A. 04/01/05 4.97 1,000,000
25,000,000 John Hancock Mutual Life Insurance Company (m) 08/19/00 5.77 25,000,000
1,130,000 KBL Capital Fund, Incorporated
(BH Reality Limited Partnership) (h)
LOC Old Kent Bank & Trust Company 05/01/21 4.95 1,130,000 A1
4,280,000 KBL Capital Fund, Incorporated - Series 1995A (h)
LOC Old Kent Bank & Trust Company 07/01/05 4.95 4,280,000 A1
2,000,000 Kit Carson County, CO Agricultural Development RB
(Midwest Farms, LLC) - Series 1997 (h)
LOC Norwest Bank Minneapolis 06/01/27 5.30 2,000,000 A1
5,275,000 Kool Capital, L.L.C. (h)
LOC Michigan National Bank 04/01/29 4.98 5,275,000
4,400,000 Laurel County, Kentucky Industrial Building RB
(Consolidated Biscuit Company Project) (h)
LOC Fifth Third Bank 03/01/15 5.25 4,400,000
500,000 LRC - B Wadsworth Investors, Limited (h)
LOC Star Bank, N.A. 09/01/17 5.10 500,000
3,915,000 Macroe Properties, Incorporated (h)
LOC First Michigan Bank 09/01/27 4.95 3,915,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
================================================================================
<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>
$ 4,100,000 Maryland HEFA RB (North Arundale Hospital) (h)
LOC Mellon Bank, N.A. 07/01/27 5.15% $ 4,100,000
3,940,000 Maximum Principal Amount Limited Partnership
(Riverview Medical Office Building) (h)
LOC National City Bank 11/01/17 4.95 3,940,000
5,850,000 Maximum Principal Amount VRB Notes (Hanover Project) (h)
LOC National City Bank 12/01/07 4.95 5,850,000 A1
15,835,000 Medical Clinic Board of Mobile, AL RB
(Springhill Medical Complex) - Series 1996B (h)
LOC Amsouth Bank, N.A. 09/01/11 5.00 15,835,000 P1
1,000,000 Miami Valley Steel Service, Incorporated - Series 1996 (h)
LOC National City Bank 02/01/16 4.95 1,000,000
2,735,000 Michigan HEFA (Hope College) - Series 1996M (h)
LOC Old Kent Bank & Trust Company 10/01/16 4.95 2,735,000
6,345,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Incorporated) - Series 1995 (h)
LOC National Bank of Detroit 06/01/10 5.05 6,345,000 P1
4,150,000 New Federal Cold Storage, Incorporated Project - Series 199C (h)
LOC National City Bank 08/01/11 4.95 4,150,000
3,200,000 New York State HFA RB (345 East 94th Street) (h)
LOC Key Bank 11/01/31 5.05 3,200,000 VMIG-1
5,000,000 Oxnard Financing Authority Refunding Lease RB - Series 1993 (h)
LOC Union Bank of California 06/01/06 5.05 5,000,000 A1
1,750,000 Pomeroy Investment, LLC - Series 1997 (h)
LOC Star Bank, N.A. 04/01/17 4.97 1,750,000
3,400,000 Prince William County, VA - Series A (h)
LOC Wachovia Bank & Trust Company, N.A. 03/01/17 4.88 3,400,000 VMIG-1
5,500,000 Security Self-Storage, Inc. (h)
LOC Bank One 01/01/19 4.96 5,500,000
4,415,000 Shepperd Capital L.L.C. (h)
LOC First of America Michigan National Bank 09/15/47 4.95 4,415,000
15,000,000 SMM Trust 1997 - A (n) 12/15/99 5.10 15,000,000 P1 A1+
8,400,000 Southwestern Ohio Steel, Incorporated (h)
LOC Star Bank, N.A. 04/01/08 4.97 8,400,000
19,000,000 State of Missouri HEFA
(SSM Health Care System) 1995 - Series D (h)
MBIA Insured 06/01/24 4.96 19,000,000 A1+
12,520,000 Stone Creek, L.L.C. - Series 1995 (h)
LOC Columbus Bank & Trust Company 08/01/22 5.05 12,520,000 P1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,200,000 Team Capital, L.L.C. (h)
LOC Old Kent Bank & Trust 03/01/29 5.02% $ 3,200,000
1,950,000 Town of Greendale, IN EDA RB - Series 1993B (h)
LOC National City Bank 12/01/05 4.95 1,950,000
2,465,000 Vista Funding Corporation - Series 1997A (h)
LOC Fifth Third Bank 07/01/15 4.95 2,465,000
1,520,000 Walt Sweeney Ford - Series 1996 (h)
LOC Fifth Third Bank 01/01/12 4.95 1,520,000
2,580,000 Washington State Housing Finance Commission
(Marketplace Apt) (h)
LOC Bank One 07/01/29 5.05 2,580,000 VMIG-1
6,190,000 Weller Irrevocable Trust #2 - Series 1998 (h)
LOC First Union National Bank of North Carolina 09/01/13 5.05 6,190,000 A1
3,210,000 Westchester County, NY IDA RB (B.W.P. Distributors Inc.) (h)
LOC First Union National Bank of North Carolina 10/01/28 5.00 3,210,000
870,000 Westchester Presbyterian Church (h)
LOC Star Bank, N.A. 09/01/13 5.15 870,000
2,510,000 William Thies & Son, Incorporated (h)
LOC First Union National Bank of North Carolina 03/01/07 5.00 2,510,000
------------ --------------
341,174,151 Total Other Notes 341,174,151
------------ --------------
<CAPTION>
Repurchase Agreement, Overnight (6.99%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$103,000,000 The Goldman Sachs Group L.P.
(Collateralized by $148,563,951 GNMAs, 5.00% to 10.00%,
due 05/15/11 to 03/20/29, proceeds $105,060,000) 04/01/99 5.05% $ 103,000,000
------------ --------------
103,000,000 Total Repurchase Agreement, Overnight 103,000,000
------------ --------------
<CAPTION>
Short Term Bank Note (1.02%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 15,000,000 NationsBank 01/18/00 5.02% $ 14,997,688 P1 A1+
------------ --------------
15,000,000 Total Short Term Bank Note 14,997,688
------------ --------------
<CAPTION>
Yankee Certificates of Deposit (2.04%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 Commerzbank, A.G. 02/25/00 5.20% $ 9,994,027 P1 A1+
20,000,000 Toronto Dominion Bank 12/29/99 5.09 19,998,563 P1 A1+
------------ --------------
30,000,000 Total Yankee Certificates of Deposit 29,992,590
------------ --------------
Total Investments (100.72%)(Cost $1,483,313,639+) $1,483,313,639
Liabilities in Excess of Cash and Other Assets (-0.72%) ( 10,607,619)
--------------
Net Assets (100.00%) $1,472,706,020
==============
+ 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)
MARCH 31, 1999
================================================================================
FOOTNOTES:
(a) The ratings noted (unaudited) 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 quarterly based upon three month LIBOR plus 5
basis points.
(c) The interest rate changes daily based upon the opening Federal Funds rate
plus 15 basis points.
(d) The interest rate is adjusted quarterly based upon three month LIBOR plus 2
basis points.
(e) The interest rate is adjusted daily based upon the opening Federal Funds
rate plus 10 basis points; daily put option.
(f) The interest rate is adjusted monthly based upon one month LIBOR rate plus
3 basis points; 5 day put option.
(g) The interest rate is adjusted monthly based upon one month LIBOR plus 11
basis points.
(h) These securities have a 7-day put feature exercisable by the Fund at par
value. Rate changes weekly.
(i) The interest rate is adjusted daily based upon prime rate minus 2.90%.
(j) The interest rate is adjusted weekly based upon the commercial paper
composite plus 5 basis points; weekly put option.
(k) The interest rate is adjusted weekly based upon one month LIBOR minus 1
basis point; weekly put option.
(l) The interest rate is adjusted quarterly based upon LIBOR flat.
(m) One year put. Rate changes 8/19/99 based on one year LIBOR plus 6 basis
points.
(n) The interest rate is adjusted quarterly based upon LIBOR plus 10 basis
points.
<TABLE>
<CAPTION>
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
GNMA = Government National Mortgage Association MBIA = Municipal Bond Insurance Association
HFA = Housing Finance Authority RB = Revenue Bond
HEFA = Health & Education Facilities Authority VR = Variable Rate
IDA = Industrial Development Authority VRB = Variable Revenue Bond
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- ------
Agency Discount Notes (24.23%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,000,000 Federal Home Loan Mortgage Corporation 04/08/99 4.82% $ 2,997,223
2,000,000 Federal Home Loan Mortgage Corporation 04/15/99 4.72 1,996,368
3,000,000 Federal Home Loan Mortgage Corporation 04/26/99 4.80 2,990,083
3,000,000 Federal Home Loan Mortgage Corporation 05/14/99 4.85 2,982,800
2,500,000 Federal Home Loan Mortgage Corporation 06/11/99 4.80 2,476,580
3,000,000 Federal Home Loan Mortgage Corporation 07/09/99 4.82 2,960,730
3,000,000 Federal Home Loan Mortgage Corporation 07/26/99 4.71 2,955,533
2,000,000 Federal Home Loan Mortgage Corporation 08/04/99 4.76 1,967,708
3,000,000 Federal Home Loan Mortgage Corporation 09/24/99 4.86 2,930,466
1,325,000 Federal National Mortgage Association 04/01/99 4.79 1,325,000
3,000,000 Federal National Mortgage Association 04/02/99 4.76 2,999,608
10,000,000 Federal National Mortgage Association 04/07/99 4.61 9,992,483
3,000,000 Federal National Mortgage Association 04/27/99 4.74 2,989,860
1,642,000 Federal National Mortgage Association 06/03/99 4.80 1,628,351
1,700,000 Federal National Mortgage Association 06/14/99 4.71 1,683,856
2,000,000 Federal National Mortgage Association 06/30/99 4.67 1,977,100
3,000,000 Federal National Mortgage Association 09/07/99 4.93 2,936,267
------------ ------------
50,167,000 Total Agency Discount Notes 49,790,016
------------ ------------
<CAPTION>
Floating Rate Securities (6.32%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 10,000,000 Federal Home Loan Bank Floater (a) 06/17/99 4.74% $ 9,999,579
3,000,000 Federal Home Loan Bank Floater (b) 09/08/99 4.84 2,999,343
------------ ------------
13,000,000 Total Floating Rate Securities 12,998,922
------------ ------------
<CAPTION>
Government Agencies (2.92%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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
------------ ------------
6,000,000 Total Government Agencies 6,000,000
------------ ------------
<CAPTION>
Government Agency Medium Term Notes (11.69%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 4.86 2,010,848
2,500,000 Federal Home Loan Bank 01/21/00 4.86 2,501,646
10,000,000 Federal National Mortgage Association 05/05/99 4.56 10,008,508
1,500,000 Federal National Mortgage Association 07/02/99 4.85 1,503,847
5,000,000 Federal National Mortgage Association 09/24/99 4.91 5,001,398
------------ ------------
24,000,000 Total Government Agency Medium Term Notes 24,026,247
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- ------
Repurchase Agreements, Overnight (55.95%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 55,000,000 Goldman Sachs Group L.P. dated 04/01/99
(Collateralized by $71,367,485 GNMAs, 4.00% to 8.35%,
due 12/15/13 to 03/20/29, proceeds $56,117,949) 04/01/99 5.05% $ 55,000,000
60,000,000 Morgan (J.P.) Securities, Inc. dated 04/01/99
(Collateralized by $63,033,763 GNMAs, 6.0000%,
due 12/15/28 to 01/15/29, proceeds $61,200,001) 04/01/99 5.00 60,000,000
------------ ------------
115,000,000 Total Repurchase Agreements, Overnight 115,000,000
------------ ------------
Total Investments (101.11%) (Cost $207,815,185+) $207,815,185
Liabilities in Excess of Cash and Other Assets (-1.11%) ( 2,291,733)
------------
Net Assets (100.00%) $205,523,452
============
+ 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 6 month T-Bill Bond Equivalent Yield plus 27
basis points.
(b) This is a variable Federal Home Loan Bank Floating Rate Note. The interest
rate changes monthly based on 1 month LIBOR minus 18 basis points.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C>
GNMA = Government National Mortgage Association
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Tax Exempt Investments (17.98%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 670,000 City of Lynchburg, VA GO Public Improvement Bonds 05/01/99 3.73% $ 670,133
2,770,000 Cuyahoga Falls, OH School District 06/30/99 3.75 2,771,048
5,300,000 City of Fall River, MA BAN 03/15/00 3.10 5,317,133 MIG-1
5,000,000 Florida Housing Finance Corporation 03/31/00 3.06 5,002,028 VMIG-1
4,000,000 Illinois Housing Development Authority RB
(Homeowner Mortgage)
LOC Morgan Stanley & Company 04/29/99 3.85 4,000,000 VMIG-1 A1+
4,000,000 Indiana Bond Bank Advanced
Funding Project Notes - Series 1998A-2 01/19/00 2.94 4,016,581 MIG-1 SP-1+
3,060,000 Lancaster County, PA
AMBAC Insured 12/15/99 3.02 3,089,108
4,650,000 Menomonie, WI Area School District 09/08/99 3.65 4,651,957
5,000,000 Montachusett, MA Regional Vocational BAN 07/23/99 3.60 5,005,215 MIG-1
3,500,000 North Dakota State HFA RB
GIC AIG 11/01/99 3.12 3,517,870 MIG-1
1,500,000 North Dakota HFA - Series C RB
GIC Trinity Funding 04/01/00 3.20 1,500,000 MIG-1
1,010,000 Northside Independent School District 02/15/00 3.14 1,025,425
2,000,000 Overland Park, KS
(Municipal Temporary Notes) - Series 1998 05/01/99 3.74 2,000,140
3,000,000 Sun Prairie Area School District TRAN 08/23/99 3.63 3,000,797
2,500,000 Temple University of the Commonwealth System
(Higher Education University Funding Obligation) - Series A 05/14/99 3.70 2,502,126 SP-1+
2,770,000 Town of Odessa, WA BAN - Series 1998 10/15/99 3.70 2,770,000
1,080,000 Virginia Housing Development Authority MHRB - Series 1995 05/01/99 3.43 1,081,045
2,400,000 Whitnall School District RAN 10/28/99 3.06 2,405,345
------------ ------------
54,210,000 Total Other Tax Exempt Investments 54,325,951
------------ ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (53.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 3.35% $ 5,455,000 A1
1,100,000 Berkeley County, SC (Amoco Chemical Company) 04/01/28 3.30 1,100,000 VMIG-1 A1+
5,000,000 Butler County, KS Solid Waste 08/01/24 3.35 5,000,000 VMIG-1 A1
600,000 Butler County, PA IDA (Armco Incorporated Project) - Series 1996A
LOC Chase Manhattan Bank, N.A. 06/01/20 3.25 600,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
================================================================================
<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 Public Trust Authority
(Solid Waste Disposal)
LOC Morgan Guaranty Trust Company 12/01/27 3.25% $ 2,000,000 A1+
2,500,000 City of Milton, WI IDRB (New England Extrusion, Inc. Project)
LOC U.S. Trust 05/01/13 3.10 2,500,000 A1+
9,455,000 Clipper, HI Housing Finance & Development Authority COPS 07/24/03 3.26 9,455,000 VMIG-1
4,800,000 Development Finance Authority, AR
(Conestoga Wood Specialties Project)
LOC First Union National Bank 07/01/08 3.20 4,800,000
3,500,000 City of Deridder, LA IDRB (Pax Inc. Project)
LOC Bank One 08/01/12 3.30 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 3.20 8,250,000
2,000,000 Finance Authority of Maine
(William Arthur, Inc.) - Series 1997
LOC First National Bank of Chicago 10/01/12 3.05 2,000,000 A1+
7,000,000 Fulco, GA HRB (Shepard Center Inc. Project)
LOC Wachovia Bank & Trust Co., N.A. 09/01/17 2.90 7,000,000 A1+
6,445,000 Fulton County, GA MHRB (Greenhouse Holcomb Project)
Fannie Mae Collateralized 04/01/30 3.00 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 3.60 1,200,000
1,200,000 Gulf Coast Waste Disposal Authority
(Amoco Oil Company) 05/01/24 3.30 1,200,000 P1 A1+
1,400,000 Gulf Coast Waste Disposal Authority
(Amoco Oil Company) - Series 1993 05/01/23 3.30 1,400,000 VMIG-1 A1+
8,600,000 Harris County, TX HFDC (Sisters of Charity) - Series C 07/01/23 3.07 8,600,000 VMIG-1 A1+
1,875,000 IDA of The City of Lynchburg, VA (AEROFIN Corp. Proj.)
LOC PNC Bank, N.A. 04/01/29 3.50 1,875,000
3,900,000 Jackson City, MS Sewage Facility
(Chevron USA Inc. Project) 12/15/24 3.30 3,900,000 P1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,000,000 Jefferson County, KY Industrial Building
(Fetter Printing Company Project)
LOC PNC Bank, N.A. 05/01/10 3.25% $ 3,000,000
2,200,000 King George County, VA IDA (Birchwood Power Partners)
LOC Credit Suisse/First Boston 11/01/25 3.35 2,200,000 A1+
4,000,000 Lebanon, MO IDA IDRB (Durham Company Project)
LOC Commerce Bank 01/01/19 3.25 4,000,000 P1
1,500,000 Louisville & Jefferson County (Airport System) - Series AA
LOC National City Bank 06/30/02 3.20 1,500,000 VMIG-1
5,200,000 Madison County, IL Environmental Improvement
(Shell Wood River Refining Company) 03/01/33 3.30 5,200,000 VMIG-1 A1+
6,800,000 Marion County, WV
County Commission Solid Waste Disposal Facility RB
(Granttown Project)
LOC National Westminster Bank PLC 10/01/17 3.10 6,800,000 VMIG-1 A1+
1,500,000 Martin City, FL (Florida Power & Light) 01/01/27 3.35 1,500,000 VMIG-1 A1+
5,000,000 Metropolitan Washington D.C. Airport Authority RB - Series C 10/01/27 3.05 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 3.25 800,000
2,100,000 North Texas Higher Education Authority Student Loan RB - Series C
AMBAC Insured 04/01/36 3.10 2,100,000 VMIG-1
2,400,000 Parish of Ouachita, LA (EPCO Carbondioxide Project)
LOC Bank One 02/01/05 3.30 2,400,000 P1
2,300,000 Parish of St. Charles (Shell Oil Norco Project) 09/01/23 3.30 2,300,000 VMIG-1 A1+
475,000 Pennsylvania EDFA (Tri State Hyraulics Inc.) - Series 1996D-7
LOC PNC Bank, N.A. 08/01/06 3.25 475,000
1,600,000 Pennsylvania EDFA RB (Trigon Incorporated)
LOC PNC Bank, N.A. 08/01/05 3.25 1,600,000
1,300,000 Pennsylvania EDFA (Plastikos Reality Project) - Series 1997E
LOC PNC Bank, N.A. 11/01/12 3.25 1,300,000
2,900,000 Pitkin County, IDRB (Aspen Skiing Co. Proj.)
LOC First National Bank of Chicago 04/01/14 3.25 2,900,000 A1+
2,500,000 Port of Corpus Christie Nueces County, TX
Koch Refining Co. - Series 1995A 05/01/25 3.00 2,500,000 VMIG-1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
================================================================================
<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 Portland, OR IDRB (Oregon Transfer Company)
LOC US National Bank of Oregon 11/01/01 3.62% $ 1,200,000
2,570,000 Prattville, AL IDRB
LOC Amsouth Bank 03/01/26 3.30 2,570,000 A1
2,000,000 Regional Transportation District Colorado
(Transit Vehicles Project) - Series A
LOC State Street Bank & Trust Company 12/01/17 3.05 2,000,000 A1+
1,350,000 Richmond City, GA Solid Waste RB
LOC Banque National de Paribas 07/01/32 3.15 1,350,000 P1 A1
5,000,000 South Texas Higher Education Authority
MBIA Insured 12/01/03 3.00 5,000,000 VMIG-1
800,000 Southwestern, IL Development Authority Solid Waste Disposal
(Shell Oil Company Wood River) 08/01/21 3.30 800,000 VMIG-1 A1+
1,400,000 Southwestern, IL Development Authority Solid Waste Disposal
(Shell Oil Company Wood River) 11/01/25 3.30 1,400,000 VMIG-1 A1+
4,100,000 State of Ohio Solid Waste RB (BP Exploration & Oil Project) 02/01/33 3.30 4,100,000 P1 A1+
7,000,000 Sussex County, DE IDRB
(Perdue Farms Inc. Project) - Series 1992
LOC Rabobank Nederland 04/01/12 3.25 7,000,000
1,815,000 Talbot County, GA Development Authority IDRB
(Douglas Asphalt Company Project)
LOC First Union National Bank 04/01/08 3.25 1,815,000
5,300,000 Washington State HFC MHRB (Wadering Creek Project)
LOC Bank of America 01/01/26 3.45 5,300,000 VMIG-1
350,000 Westmoreland County, PA IDRB
(Solidur Plastics Estate Project)
LOC PNC Bank, N.A. 12/01/02 3.25 350,000
5,000,000 West Side Calhoun, TX
(Solid Waste Disposal BP Chemicals) 04/01/31 3.30 5,000,000 A1+
1,250,000 York County, PA IDA Limited Obligation RB
(Metal Exchange Corporation Project) - Series 1996
LOC Comerica Bank 06/01/06 3.30 1,250,000
------------ ------------
160,990,000 Total Other Variable Rate Demand Instruments 160,990,000
------------ ------------
</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) (5.69%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Arkansas Development Finance Authority
(Single Family Mortgage RB)
FGIC Insured 03/01/00 3.00% $ 1,000,000
4,000,000 Business Finance Authority of the State of New Hampshire PCRB
(New England Power Company Project) 05/04/99 3.45 4,000,000
1,700,000 City of Dayton, KY Building RB - Series 1994 C
LOC Fifth Third Bank 04/01/99 3.65 1,700,000
6,500,000 Hartford County, MD IDRB (A.O. Smith)
LOC Bank One 09/01/99 3.15 6,500,000
1,000,000 Michigan Strategic Fund (Donnelly Corp. Project) - Series 1988
LOC Dresdner Bank A.G. 04/01/99 3.75 1,000,000 P1 A1+
2,990,000 Vermont State Educational & Health Building Finance Agency
(Middlebury College) 11/01/99 3.10 2,990,000 A1+
------------ ------------
17,190,000 Total Put Bonds 17,190,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (18.23%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 05/05/99 2.85% $ 6,600,000 VMIG-1 A1
3,000,000 Development Authority of Burke County, GA
(Oglethorpe Power Corp. Project)
AMBAC Insured 04/12/99 3.20 3,000,000 VMIG-1 A1+
3,200,000 County & City of Denver, CO
Airport System Subordinate RB - Series 1997A
LOC Bayerische Landesbank Girozentrale 04/05/99 2.90 3,200,000 P1 A1+
1,800,000 County & City of Denver, CO
Airport System Subordinate RB - Series 1997A
LOC Bayerische Landesbank Girozentrale 06/02/99 3.20 1,800,000 P1 A1+
8,000,000 Hospital Board of Lee County, FL HRB
(Lee Memorial Hospital Project) - Series 1992C 06/01/99 3.25 8,000,000 VMIG-1 A1+
10,000,000 Metropolitan Washington D.C. Airport Authority
LOC NationsBank 04/29/99 2.90 10,000,000 A1
4,800,000 Municipal Gas Authority of Georgia, Gas RB
(Southern Portfolio I Project) - Series D
LOC Wachovia Bank & Trust Co., N.A. 05/04/99 2.90 4,800,000 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
================================================================================
<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>
$ 4,000,000 North Carolina Municipal Power Agency #1 (Catawba Project)
LOC Morgan Guaranty Trust Company/Union Bank of Switzerland 06/10/99 2.95% $ 4,000,000 P1 A1+
3,000,000 Ohio Water Development Authority PCRB (Duquesne Light Control)
LOC Toronto-Dominion Bank 04/05/99 2.95 3,000,000 A1+
3,000,000 Sarasota County, FL Public Hospital District HRB
(Sarasota Memorial Hospital) - Series 1996 05/03/99 3.00 3,000,000 VMIG-1
2,500,000 Venango, PA IDA Resource Recovery RB
(Scrubgrass Project) - Series 1990A
LOC National Westminster Bank PLC 04/01/99 2.55 2,500,000 P1 A1+
2,000,000 Venango, PA IDA Resource Recovery RB
(Scrubgrass Project) - Series B
LOC National Westminster Bank PLC 05/12/99 2.70 2,000,000 P1 A1+
1,500,000 Venango, PA IDA Resource Recovery RB
(Scrubgrass Project) - Series 1990B
LOC National Westminster Bank PLC 05/13/99 2.80 1,500,000 P1 A1+
1,700,000 West Virginia Public Energy Authority Energy RB
(Morgantown Energy Assoc. Project) - Series 1989A
LOC Union Bank of Switzerland 05/10/99 2.70 1,700,000 P1 A1+
------------ ------------
55,100,000 Total Tax Exempt Commercial Paper 55,100,000
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (0.66%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Jersey State EDA IDRB
(Harrison Riverside Industries Project)
LOC Chase Manhattan Bank, N.A. 01/01/02 5.03% $ 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 5.03 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) (4.49%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 4.00% $9,100,000
690,000 Jefferson County, MO IDA IDRB (Holley Partnership)
LOC Chase Manhattan Bank, N.A. 12/01/04 5.03 690,000 P1 A1
330,476 New Jersey State EDA IDRB (Heary Modelle & Company)
LOC Chase Manhattan Bank, N.A. 09/01/00 5.03 330,476 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
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments - Private Placements (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,400,000 District of Columbia HFA MHRB
(Tyler House Certificate Trust COPS) - Series 1995A
LOC PNC Bank, N.A. 08/01/25 3.35% $ 1,400,000 VMIG-1
2,062,000 York County, PA IDA IDRB (Manor Care of Kingston Court Inc.)
LOC Chase Manhattan Bank, N.A. 12/01/08 5.03 2,062,000 P1 A1
------------ ------------
13,582,476 Total Variable Rate Demand Instruments - Private Placements $ 13,582,476
------------ ------------
Total Investments (100.33%) (Cost $303,188,427+) $303,188,427
Liabilities in Excess of Cash and Other Assets (-0.33%) ( 1,001,897)
------------
Net Assets (100.00%) $302,186,530
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
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 HFDC = Housing Finance Development Authority
BAN = Bond Anticipation Note 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 RAN = Revenue Anticipation Note
HFA = Housing Finance Authority RB = Revenue Bond
HFC = Housing Finance Commission TRAN = Tax and Revenue Anticipation Note
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
ASSETS:
<S> <C> <C> <C>
Investments in securities*........... $ 1,483,313,639 $ 207,815,185 $ 303,188,427
Cash................................. 1,307,800 264,625 --
Interest receivable.................. 5,229,060 619,817 1,900,221
Other assets......................... -- -- 7,248
------------------- ------------------- -------------------
Total Assets..................... 1,489,850,499 208,699,627 305,095,896
<CAPTION>
LIABILITIES:
<S> <C> <C> <C>
Dividends payable.................... 164,708 23,031 19,540
Due to custodian..................... -- -- 1,256,391
Payable for securities purchased..... 15,324,927 3,000,000 1,500,000
Payable for shares redeemed.......... 1,577,266 149,756 133,435
Other accounts payable............... 77,578 3,388 --
------------------- ------------------- -------------------
Total Liabilities................ 17,144,479 3,176,175 2,909,366
------------------- ------------------- -------------------
NET ASSETS............................. $ 1,472,706,020 $ 205,523,452 $ 302,186,530
=================== =================== ===================
<CAPTION>
SHARES OUTSTANDING:
<S> <C> <C> <C>
Cortland Shares...................... 660,653,119 64,518,847 49,236,993
Live Oak Shares...................... 813,755,956 79,086,159 70,128,615
Bradford Shares...................... -- 62,176,531 182,842,390
Net asset value, offering and redemption
price per share, all classes
(net assets/shares).................. $ 1.00 $ 1.00 $ 1.00
=================== =================== ===================
* Including repurchase agreements amounting to $103,000,000 and $115,000,000
for the Cortland General Money Market Fund and U.S. Government Fund,
respectively.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
INVESTMENT INCOME
<S> <C> <C> <C>
Interest Income......................... $ 67,897,277 $ 9,285,434 $ 10,303,356
----------------- ----------------- -----------------
Expenses:
Management fee--Note 3(a)............ 9,651,092 1,371,830 2,252,782
Distribution support and services
----Note 3(c):
Cortland shares............... 1,416,410 133,237 118,803
Live Oak shares............... 1,378,999 143,685 129,679
Bradford shares............... -- 133,429 451,854
Other expenses....................... 130,563 35,277 49,000
----------------- ----------------- -----------------
Total Expenses................ 12,577,064 1,817,458 3,002,118
Expenses waived by
Manager--Note 3(c).................. ( 173,824) ( 175,524) ( 372,028)
----------------- ----------------- -----------------
Net Expenses.................. 12,403,240 1,641,934 2,630,090
----------------- ----------------- -----------------
Net Investment Income................... 55,494,037 7,643,500 7,673,266
<CAPTION>
NET REALIZED GAIN
ON INVESTMENTS
<S> <C> <C> <C>
Net realized gain on investments........ 446,452 21,372 3,195
----------------- ----------------- -----------------
Increase in net assets from operations.. $ 55,940,489 $ 7,664,872 $ 7,676,461
================= ================= =================
</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 Year Ended March 31, For the Year Ended March 31, For the Year Ended March 31,
1999 1998 1999 1998 1999 1998
----------- ----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income...... $ 55,494,037 $ 66,445,545 $ 7,643,500 $ 9,272,005 $ 7,673,266 $ 6,804,164
Net realized gain on
investments............ 446,452 30,820 21,372 7,240 3,195 21
------------- ------------- ------------- ------------- ------------- -------------
Increase in net assets
from operations........ 55,940,489 66,476,365 7,664,872 9,279,245 7,676,461 6,804,185
Distributions
to shareholders from:
Net investment income:
Cortland shares.......... ( 25,151,926) ( 42,375,897) ( 2,235,590) ( 4,996,904) ( 1,191,766)+ ( 2,752,924)+
Live Oak shares.......... ( 30,731,761) ( 23,562,542) ( 3,092,403) ( 2,753,335) ( 1,664,742)+ ( 1,631,855)+
Bradford shares.......... -- -- ( 2,336,645) ( 1,144,489) ( 4,816,758)+ ( 2,419,385)+
Capital share
transactions net (Note 4):
Cortland shares.......... 154,411,380 ( 665,776,020) 16,374,315 ( 116,800,799) 1,452,471 ( 105,555,742)
Live Oak shares.......... 202,978,164 169,688,175 12,157,220 11,710,418 2,426,549 8,901,280
Bradford shares.......... -- -- 10,509,430 51,667,101 10,512,085 172,330,305
------------- ------------- ------------- ------------- ------------- -------------
Total increase (decrease).. 357,446,346 ( 485,549,919) 39,041,199 ( 53,038,763) 14,394,300 75,675,864
Net assets:
Beginning of year.......... 1,115,259,674 1,600,809,593 166,482,253 219,521,016 287,792,230 212,116,366
------------- ------------- ------------- ------------- ------------- -------------
End of year................ $1,472,706,020 $1,115,259,674 $ 205,523,452 $ 166,482,253 $ 302,186,530 $ 287,792,230
============= ============= ============= ============= ============= =============
Undistributed net
investment income....... $ 145,653 $ 535,303 $ 406,139 $ 427,277 $ -0- $ -0-
+ Designated as exempt-interest dividends for regular federal income tax
purposes.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
================================================================================
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 March 31, 1999, there were
21,569,919 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)
MARCH 31, 1999
================================================================================
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 March 31,
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 profits, 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 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 $10,000 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 year ended March 31, 1999, the Distributor waived Distribution
support and services fees of $169,971 and $3,853 for the Cortland shares and
Live Oak shares, respectively, of the Cortland General Fund.
During the year ended March 31, 1999, the Distributor waived Distribution
support and services fees of $21,318, $54,177 and $100,029 for the Cortland
shares, Live Oak shares and Bradford shares, respectively, of the U.S.
Government Fund.
During the year ended March 31, 1999, the Distributor waived Distribution
support and services fees of $17,887, $19,860 and $334,281 for the Cortland
shares, Live Oak shares and Bradford shares, respectively, of the Municipal
Fund.
Note 4-Capital Share Transactions:
At March 31, 1999, 6 billion shares of $.001 par value shares of the Company
were authorized, of which 2.5 billion are designated as Cortland 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 Municipal Money
Money Market Fund U.S. Government Fund Market Fund
------------------------------ ------------------------------ ------------------------------
For the Year Ended March 31, For the Year Ended March 31, For the Year Ended March 31,
1999 1998 1999 1998 1999 1998
------------- ------------- ------------- ------------- ------------- -------------
Cortland Shares
<S> <C> <C> <C> <C> <C> <C>
Shares sold.............. 2,036,496,592 2,461,650,252 163,731,205 297,730,449 195,007,740 319,463,272
Dividends reinvested..... 25,195,494 42,496,995 2,241,098 5,015,292 1,193,378 2,763,449
------------- ------------- ------------- ------------- ------------- -------------
2,061,692,086 2,504,147,247 165,972,303 302,745,741 196,201,118 322,226,721
Shares redeemed.......... (1,907,280,706) (3,159,923,267) ( 149,597,988) ( 419,546,540) ( 194,748,647) ( 427,782,463)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease).. 154,411,380 ( 655,776,020) 16,374,315 ( 116,800,799) 1,452,471 ( 105,555,742)
============= ============= ============= ============= ============= =============
<CAPTION>
Live Oak Shares
<S> <C> <C> <C> <C> <C> <C>
Shares sold.............. 3,636,474,938 2,667,980,939 397,622,269 257,860,909 287,227,233 229,697,164
Dividends reinvested..... 30,668,616 23,505,015 3,078,766 2,746,692 1,661,013 1,627,788
------------- ------------- ------------- ------------- ------------- -------------
3,667,143,554 2,691,485,954 400,701,035 206,607,601 288,888,246 231,324,952
Shares redeemed.......... (3,464,165,390) (2,521,797,779) ( 388,543,815) ( 248,897,183) ( 286,461,697) ( 222,423,672)
------------- ------------- ------------- ------------- ------------- -------------
Net increase............. 202,978,164 169,688,175 12,157,220 11,710,418 2,426,549 8,901,280
============= ============= ============= ============= ============= =============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Note 4-Capital Share Transactions: (Continued)
Municipal Money
U.S. Government Fund Market Fund
For the Year Ended March 31, For the Year Ended March 31,
-------------------------------- -------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
Bradford Shares
<S> <C> <C> <C> <C>
Shares sold................ 250,607,502 143,036,995 732,865,165 503,861,964
Dividends reinvested....... 2,343,573 1,138,745 4,822,037 2,406,792
------------- ------------- ------------- -------------
252,951,075 144,175,740 737,687,202 506,268,756
Shares redeemed............ ( 242,441,645) ( 92,508,639) ( 727,175,117) ( 333,938,451)
------------- ------------- ------------- -------------
Net increase .............. 10,509,430 51,667,101 10,512,085 172,330,305
============= ============= ============= =============
The components of net assets at March 31, 1999 are as follows:
<CAPTION>
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
---------------------- -------------------- ---------------
<S> <C> <C> <C>
Paid-in capital...... $1,474,409,075 $ 205,781,537 $ 302,207,998
Accumulated net
realized losses.... ( 1,848,708) ( 664,224) ( 21,468)
Undistributed net
investment income.. 145,653 406,139 -0-
------------- ------------- -------------
Total net assets...... $1,472,706,020 $ 205,523,452 $ 302,186,530
============= ============= =============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights:
Cortland General Money Market Fund
--------------------------------------------------------------
Cortland Shares
--------------------------------------------------------------
For the Year Ended March 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding
throughout the year)
Net asset value,
beginning of year................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income............ 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... 0.046 0.046 0.044 0.050 0.035
Less distributions:
Dividends from net
investment income............... ( 0.045) ( 0.047) ( 0.044) ( 0.048) ( 0.038)
--------- --------- --------- --------- ---------
Total distributions................ ( 0.045) ( 0.047) ( 0.044) ( 0.048) ( 0.038)
--------- --------- --------- --------- ---------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return....................... 4.56% 4.77% 4.52% 4.95% 3.91%+
Ratios/Supplemental Data
Net assets,
end of year (000's omitted)...... $ 659,890 $ 505,442 $1,160,352 $1,159,173 $ 993,854
Ratios to average net assets:
Expenses......................... 1.00% 0.99% 1.02% 1.03% 1.03%
Net investment income............ 4.41% 4.67% 4.41% 4.86% 3.85%
Management and Distribution support
and service fees waived.......... 0.03% 0.04% -- -- 0.02%
+ 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)
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
Cortland General Money Market Fund
-------------------------------------------------------------------------
Live Oak Shares
-------------------------------------------------------------------------
For the Year Ended March 31,
-------------------------------------------------------------------------
1999 1998 1997 1996+
------------ ------------ ------------ ------------
<S> <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
------------ ------------ ------------ ------------
Income from investment operations:
Net investment income............. 0.045 0.048 0.045 0.018
Net realized and unrealized
gain/(loss) on investments....... 0.001 ( 0.001) -- --
------------ ------------ ------------ ------------
Total from investment operations.... 0.046 0.047 0.045 0.018
Less distributions:
Dividends from net
investment income................ ( 0.045 ) ( 0.047 ) ( 0.045 ) ( 0.018 )
------------ ------------ ------------ ------------
Total distributions................. ( 0.045 ) ( 0.047 ) ( 0.045 ) ( 0.018 )
------------ ------------ ------------ ------------
Net asset value, end of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============
Total Return........................ 4.59% 4.84% 4.59% 4.78%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 812,816 $ 609,818 $ 440,457 $ 351,030
Ratios to average net assets:
Expenses.......................... 0.98% 0.91% 0.95% 0.97%*
Net investment income............. 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>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
U.S. Government Fund
--------------------------------------------------------------
Cortland Shares
--------------------------------------------------------------
For the Year Ended March 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding
throughout the year)
Net asset value,
beginning of year................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income............ 0.042 0.046 0.043 0.047 0.038
Net realized and unrealized
gain/(loss) on investments...... 0.001 ( 0.001) ( 0.001) -- ( 0.003)+
---------- ---------- ---------- ---------- ----------
Total from investment operations. 0.043 0.045 0.042 0.047 0.035
Less distributions:
Dividends from net
investment income............... ( 0.042) ( 0.045) ( 0.043) ( 0.047) ( 0.038)
---------- ---------- ---------- ---------- ----------
Total distributions................ ( 0.042) ( 0.045) ( 0.043) ( 0.047) ( 0.038)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return....................... 4.33% 4.61% 4.37% 4.80% 3.84%+
Ratios/Supplemental Data
Net assets,
end of year (000's omitted)...... $ 64,438 $ 48,069 $ 164,464 $ 255,222 $ 218,307
Ratios to average net assets:
Expenses......................... 1.00% 0.81% 1.01% 1.04% 1.04%
Net investment income............ 4.18% 4.58% 4.30% 4.72% 3.74%
Management and Distribution support
and service fees waived.......... 0.04% 0.25% 0.02% -- 0.01%
+ 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)
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
U.S. Government Fund
------------------------------------------------------------------------------------------
Live Oak Shares Bradford Shares
------------------------------------------------ ---------------------------------
For the Year Ended March 31, For the Year Ended March 31,
------------------------------------------------ ---------------------------------
1999 1998 1997 1996+ 1999 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........... 0.043 0.049 0.044 0.017 0.044 0.026
Net realized and unrealized
gain/(loss) on investments..... 0.001 ( 0.001) ( 0.001) -- 0.001 ( 0.001)
--------- --------- --------- --------- ---------- ----------
Total from investment operations.. 0.044 0.048 0.043 0.017 0.045 0.025
Less distributions:
Dividends from net
investment income.............. ( 0.043) ( 0.046) ( 0.044) ( 0.017) ( 0.044) ( 0.024)
--------- --------- --------- --------- ---------- ----------
Total distributions............... ( 0.043) ( 0.046) ( 0.044) ( 0.017) ( 0.044) ( 0.024)
--------- --------- --------- --------- ---------- ----------
Net asset value, end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========== ==========
Total Return...................... 4.42% 4.75% 4.53% 4.74%* 4.49% 4.83%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)... $ 78,987 $ 66,829 $ 55,057 $ 47,328 $ 62,098 $ 51,584
Ratios to average net assets:
Expenses........................ 0.91% 0.68% 0.86% 0.89%* 0.85% 0.86%*
Net investment income........... 4.29% 4.89% 4.45% 4.64%* 4.37% 5.22%*
Management and Distribution support
and service fees waived......... 0.08% 0.24% 0.12% 0.11%* 0.19% 0.18%*
* Annualized
+ Live Oak shares commenced distribution on November 16, 1995.
++ Bradford shares commenced distribution on October 1, 1997.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
Municipal Money Market
--------------------------------------------------------------
Cortland Shares
--------------------------------------------------------------
For the Year Ended March 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding
throughout the year)
Net asset value,
beginning of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income........... 0.025 0.028 0.026 0.030 0.026
--------- --------- --------- --------- ---------
Total from investment operations... 0.025 0.028 0.026 0.030 0.026
Less distributions:
Dividends from net
investment income.............. ( 0.025) ( 0.028) ( 0.026) ( 0.030) ( 0.026)
--------- --------- --------- --------- ---------
Total distributions................ ( 0.025) ( 0.028) ( 0.026) ( 0.030) ( 0.026)
--------- --------- --------- --------- ---------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return....................... 2.56% 2.81% 2.68% 3.06% 2.58%
Ratios/Supplemental Data
Net assets,
end of year (000's omitted)..... $ 49,234 $ 47,780 $ 153,322 $ 216,456 $ 224,041
Ratios to average net assets:
Expenses........................ 1.00% 1.01% 1.02% 1.03% 0.99%
Net investment income........... 2.51% 2.81% 2.64% 3.02% 2.54%
Management and Distribution support
and service fees waived......... 0.04% -- -- -- 0.06%
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Note 5-Financial Highlights: (Continued)
Municipal Money Market
------------------------------------------------------------------------------------------
Live Oak Shares Bradford Shares
------------------------------------------------ ---------------------------------
For the Year Ended March 31, For the Year Ended March 31,
------------------------------------------------ ---------------------------------
1999 1998 1997 1996+ 1999 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........... 0.026 0.029 0.027 0.011 0.027 0.014
--------- --------- --------- --------- ---------- ----------
Total from investment operations.. 0.026 0.029 0.027 0.011 0.027 0.014
Less distributions:
Dividends from net
investment income.............. ( 0.026) ( 0.029) ( 0.027) ( 0.011) ( 0.027) ( 0.014)
--------- --------- --------- --------- ---------- ----------
Total distributions............... ( 0.026) ( 0.029) ( 0.027) ( 0.011) ( 0.027) ( 0.014)
--------- --------- --------- --------- ---------- ----------
Net asset value, end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========== ==========
Total Return...................... 2.60% 2.93% 2.77% 2.96%* 2.71% 2.87%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)... $ 70,124 $ 67,697 $ 58,794 $ 49,663 $ 182,829 $ 172,315
Ratios to average net assets:
Expenses........................ 0.95% 0.90% 0.93% 0.96%* 0.85% 0.86%*
Net investment income........... 2.57% 2.86% 2.72% 2.91%* 2.67% 2.81%*
Management and Distribution support
and service fees waived......... 0.03% 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.
INDEPENDENT AUDITOR'S REPORT
================================================================================
Shareholders and Board of Directors
Cortland Trust, Inc.
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of Cortland Trust, Inc. (comprising,
respectively, the Cortland General Money Market Fund, the U.S. Government Fund
and the Municipal Money Market Fund) as of March 31, 1999, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights (Note 5) for each of the years indicated therein. These financial
statements and financial highlights are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of March 31, 1999, by correspondence with the custodian and
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective funds constituting Cortland Trust, Inc. at March 31, 1999, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended, and the financial
highlights (Note 5) for each of the indicated years, in conformity with
generally accepted accounting principles.
\s\Ernst & Young, LLP
May 12, 1999
New York, New York
<PAGE>
_____________________
CORTLAND
TRUST, INC
_____________________
CORTLAND GENERAL
MONEY MARKET
FUND
_____________________
U.S. GOVERNMENT
FUND
_____________________
MUNICIPAL MONEY
MARKET FUND
_____________________
Annual Report
March 31, 1999
CORTLAND
600 Fifth Avenue
New York, NY 10020
212-830-5200
<PAGE>
[GRAPHIC OMITTED]
CORTLAND BULK RATE
------ U.S. POSTAGE
PAID
600 Fifth Avenue BROOKLYN, NY
New York, NY 10020 PERMIT NO. 7379
<PAGE>
