<PAGE>
--------------------------------------------------------------------------------
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, 2000.
The Cortland General Money Market Fund had 122,563 shareholder accounts and net
assets of $1,817,003,401 as of March 31, 2000.
As of March 31, 2000, the U.S. Government Fund had 6,466 shareholder accounts
and net assets of $184,846,757.
As of March 31, 2000, the Municipal Money Market Fund had 2,474 shareholder
accounts and net assets of $267,367,067.
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
MARCH 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-------------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Commercial Paper (20.44%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 British Aerospace NA Inc. 08/21/00 6.30% $ 19,517,989 P1 A1
19,406,000 Forrestal Funding Master Trust 04/19/00 5.99 19,348,849 P1 A1+
19,215,000 Forrestal Funding Master Trust 05/10/00 6.02 19,091,976 P1 A1+
30,000,000 Great Lakes Funding Capital Corporation 04/20/00 6.15 29,903,100 P1 A1
20,000,000 Greyhawk Funding 04/10/00 5.94 19,970,750 P1 A1+
50,000,000 Lehman Brothers Holdings Incorporated 06/12/00 6.24 49,391,000 P2 A1
20,000,000 Market Street Funding 04/20/00 5.97 19,937,722 P1 A1
11,000,000 Mississippi Business Financial Corporation 04/25/00 6.05 10,999,809 P1 A1+
15,000,000 Mississippi Business Financial Corporation 04/28/00 6.05 14,999,718 P1 A1+
28,503,000 MPF Limited 04/17/00 6.10 28,426,105 P1
28,800,000 Paine Webber Group (j) 04/07/00 5.97 28,771,632 P2 A2
9,000,000 Paine Webber Group (j) 04/27/00 6.14 8,960,350 P2 A2
18,000,000 Paine Webber Group (j) 05/11/00 6.12 17,878,600 P2 A2
18,809,000 Sand Dollar Funding L.L.C. 04/03/00 5.90 18,802,887 P1 A1+
56,141,000 Sand Dollar Funding L.L.C. 06/07/00 6.16 55,505,734 P1 A1+
10,000,000 Special Purpose Accounts Receivables Cooperative 05/18/00 6.14 9,920,622 P1 A1
------------ ------------
373,874,000 Total Commercial Paper 371,426,843
------------ ------------
<CAPTION>
Letter of Credit Commercial Paper (26.64%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 Banca Serfin S.A.
LOC Barclays Bank PLC 06/05/00 6.08% $ 19,786,944 P1 A1+
14,500,000 Banco Bozano Simonsen S.A.
LOC Banco Santander 06/16/00 5.85 14,330,797 P1 A1+
15,000,000 Banco Bozano Simonsen S.A.
LOC Banco Santander 05/17/00 6.00 14,888,354 P1 A1+
20,000,000 Banco Bradesco S.A.
LOC Westdeutche Landesbank 10/02/00 6.53 19,360,978 P1 A1+
31,000,000 Banco Bradesco S.A.
LOC Barclays Bank PLC 06/19/00 6.13 30,594,554 P1 A1+
20,000,000 Banco De Galicia y Buenos Aires
LOC Bayerische HypoVereins, A.G. 05/24/00 6.04 19,824,806 P1 A1
15,000,000 Banco Itau S.A.
LOC Barclays Bank PLC 05/26/00 6.05 14,867,313 P1 A1+
19,000,000 Banco Rio de La Plata, S.A.
LOC HSBC Bank US 04/04/00 6.11 18,990,604 P1 A1+
10,000,000 Banco Rio de La Plata, S.A.
LOC HSBC Bank US 04/10/00 6.00 9,985,375 P1 A1+
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-------------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Letter of Credit Commercial Paper (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 7,000,000 Banco Rio de La Plata, S.A.
LOC HSBC Bank US 04/11/00 6.00% $ 6,988,625 P1 A1+
15,000,000 Cofco Capital Corporation
LOC Bank of America 05/16/00 6.11 14,886,563 P1 A1+
20,317,000 Cogentrix of Richmond
LOC Banque Paribas 04/10/00 6.06 20,286,321 P1 A1
15,000,000 Cogentrix of Richmond
LOC Banque Paribas 04/18/00 6.04 14,957,429 P1 A1
18,532,000 CSN Overseas
LOC Banco Santander 06/28/00 6.18 18,258,838 P1 A1
20,000,000 CSN Overseas
LOC Barclays Bank PLC 08/31/00 6.32 19,482,356 P1 A1+
18,000,000 Dean Health System Inc
LOC Rabobank Nederland 04/13/00 6.03 17,964,000 P1 A1+
20,000,000 Dixie Overseas Ltd.
LOC Credit Agricole 04/07/00 5.91 19,980,400 P1 A1+
35,000,000 E D & F Man Finance
LOC Rabobank Nederland 06/22/00 6.22 34,511,417 P1 A1+
35,000,000 Finans Funding Corporation II
LOC Rabobank Nederland 06/30/00 6.12 34,474,750 P1 A1+
40,000,000 Formosa Plastics Corporation
LOC ABN AMRO Bank 04/27/00 6.09 39,825,222 P1 A1+
15,000,000 Garanti Funding Corporation
LOC Bayerische HypoVereinsbank, A.G. 04/18/00 5.94 14,959,625 P1 A1+
20,000,000 Louis Dreyfus Corporation
LOC ABN AMRO Bank 04/10/00 5.94 19,970,450 P1 A1+
15,000,000 Louis Dreyfus Corporation
LOC ABN AMRO Bank 04/17/00 6.04 14,959,933 P1 A1+
30,000,000 Michelin North America
LOC Societe General 04/20/00 6.07 29,904,367 P1 A1+
------------ ------------
488,349,000 Total Letter of Credit Commercial Paper 484,040,021
------------ ------------
<CAPTION>
Loan Participation (0.71%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 13,000,000 Equitable Life Assurance with Chase Manhattan Bank (k) 03/19/01 6.24% $ 13,000,000 P1 A1
------------ ------------
13,000,000 Total Loan Participation 13,000,000
------------ ------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Master Notes (6.33%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 45,000,000 GMAC Mortgage Corporation (b) 04/03/00 5.91% $ 44,985,298
20,000,000 The Goldman Sachs Group L.P. 05/18/00 6.09 20,000,000 P1 A1+
50,000,000 Willamette Industries, Incorporated (d) 06/16/00 5.97 50,000,000 A1
------------ ------------
115,000,000 Total Master Notes 114,985,298
------------ ------------
<CAPTION>
Medium Term Notes (2.20%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 The Goldman Sachs Group Incorporated 08/07/00 6.00% $ 10,000,000 P1 A1+
20,000,000 Lehman Brothers Holdings (j) 07/20/00 5.95 20,005,606 P2 A1
10,000,000 Syndicated Loan Funding Trust (c) 06/15/00 6.14 10,000,000 Aa2
------------ ------------
40,000,000 Total Medium Term Notes 40,005,606
------------ ------------
<CAPTION>
Other Notes (28.95%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,515,000 2150 Investment Company - Series 1997 (e)
LOC Fifth Third Bank 02/01/17 6.20% $ 2,515,000
6,800,000 Adelanto California, Public Utility (e)
LOC California State Teachers Retirement System 11/01/34 6.15 6,800,000 A1+
4,475,000 Adel, GA IDA (Specialty Stampings, L.L.C.) (e)
LOC National Bank of Canada 06/01/14 6.20 4,475,000 VMIG-1
3,850,000 Alabama State IDA (Central Casting Corporation) (e)
LOC First Union National Bank of North Carolina 11/01/15 6.19 3,850,000
6,235,000 Albany Dougherty, GA Payroll IDA
(Flint River Service, Inc. Project-B) (e)
LOC Columbus Bank & Trust Company 05/01/17 6.36 6,235,000 A1
970,000 Alpine Capital Investment LLC (e)
LOC First of America 09/15/27 6.25 970,000
1,645,000 Andrews Laser Works Corporation (e)
LOC Firstar Bank, N.A. 05/01/08 6.27 1,645,000
20,000,000 Bank of America Bank Notes (f) 02/26/01 6.13 20,000,000 P1 A1
1,615,000 Berkeley Square Retirement Center - Series 1998 (e)
LOC Fifth Third Bank 02/01/13 6.25 1,615,000
10,000,000 CEGW, Incorporated (e)
LOC PNC Bank, N.A. 03/31/09 6.15 10,000,000
25,000,000 CFM International, Inc. Guaranteed Notes - Series 1999A (l)
LOC General Electric Company 01/01/10 6.17 25,000,000
5,350,000 Cheney Brothers Incorporated (e)
LOC First Union National Bank of North Carolina 12/01/16 6.19 5,350,000
</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>
$ 3,400,000 Cinnamon Properties, Incorporated (e)
LOC Firstar Bank 04/01/20 6.22% $ 3,400,000
15,750,000 City & County of San Franscisco
Redevelopment Agency Taxable MHRB (e)
LOC Bayerische HypoVereins, A.G. 07/01/34 6.15 15,750,000 VMIG-1
8,555,000 Concrete Company - Series 1998 (e)
LOC Columbus Bank & Trust Company 07/01/48 6.20 8,555,000 A1
1,830,000 Consolidated Equities, L.L.C. - Series 1995 (e)
LOC Old Kent Bank & Trust Company 12/01/25 6.25 1,830,000
4,445,000 Cunat Capital Corporation
(Cunat Brothers, Incorporated/Irish Parie L.P.) - Series 1997B (e)
LOC LaSalle National Bank 06/01/27 6.25 4,445,000
1,545,000 Delta Capital L.L.C. - Series A (e)
LOC First Michigan Bank 01/01/26 6.25 1,545,000
2,780,000 Devin F. & Janis L. McCarthy - Series 1997 (e)
LOC Firstar Bank, N.A. 07/01/17 6.27 2,780,000
4,910,000 Douglas County, GA Development Authority
(Abrams Riverside, LLC Project) (e)
LOC Bank of America 11/01/18 6.20 4,910,000
6,370,000 Eagle Landing IV, Limited (e)
LOC Regions Bank 09/01/26 6.15 6,370,000 P1
5,476,000 Erie Funding I - Series 1989 (e)
LOC FirstMerit Bank 11/01/26 6.21 5,476,000
6,150,000 Eckert Seamans Cherin & Mellot (e)
LOC PNC Bank,N.A. 01/01/15 4.00 6,150,000
25,000,000 First Union National Bank of North Carolina (m) 07/17/00 6.24 25,000,000 P1 A1
2,700,000 Garden City Hospital Osteopath - Series 1997 (e)
LOC National City Bank 10/01/17 6.15 2,700,000 A1
2,209,871 General Electric Engine Receivables 1996-1 Trust
VR Guaranteed Notes (g) 02/14/01 6.11 2,209,871 P1 A1+
35,000,000 The Goldman Sachs Group, L.P. (h) 04/12/01 6.12 35,000,000 P1 A1+
1,900,000 Goshen Project - Series 1997 (e)
LOC FirstMerit Bank 11/01/17 6.26 1,900,000
1,885,000 Industrial Development Board of Montgomery (e)
LOC Columbus Bank & Trust Company 07/01/16 6.10 1,885,000
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
<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>
$ 10,685,000 Institutional Distributors, Incorporated - Series 1997 (e)
LOC Firstar Bank, N.A. 06/01/17 6.22% $ 10,685,000
2,110,000 JDV LLC (e)
LOC Michigan National Bank 07/01/27 6.25 2,110,000
2,885,000 Jake Sweeney Automotive, Incorporated (e)
LOC Firstar Bank, N.A. 04/01/10 6.22 2,885,000
25,000,000 John Hancock Mutual Life Insurance Company (n) 08/19/05 6.15 25,000,000 P1 A1+
1,080,000 KBL Capital Fund, Incorporated
(BH Reality Limited Partnership) (e)
LOC Old Kent Bank & Trust Company 05/01/21 6.20 1,080,000 A1
4,280,000 KBL Capital Fund, Incorporated - Series 1995A (e)
LOC Old Kent Bank & Trust Company 07/01/05 6.20 4,280,000 A1
2,000,000 Kit Carson County, CO Agricultural Development RB
(Midwest Farms, LLC) - Series 1997 (e)
LOC Norwest Bank Minneapolis 06/01/27 6.15 2,000,000 A1
5,275,000 Kool Capital, L.L.C. (e)
LOC Michigan National Bank 04/01/29 6.25 5,275,000
5,400,000 Kwik Park Corporation - Series 1999A (e)
LOC PNC Bank, N.A. 09/01/19 6.15 5,400,000
12,420,000 Laminations, Incorporated & Santana (e)
LOC PNC Bank, N.A. 08/31/15 6.15 12,420,000
4,200,000 Laurel County, KY Industrial Building RB
(Consolidated Biscuit Company Project) (e)
LOC Fifth Third Bank 03/01/15 6.17 4,200,000
500,000 LRC - B Wadsworth Investors, Limited (e)
LOC Firstar Bank, N.A. 09/01/17 6.42 500,000
3,740,000 Macroe Properties, Incorporated (e)
LOC First Michigan Bank 09/01/27 6.25 3,740,000
9,315,000 Madison, WI RB Community Development Authority
(Blake '89 Project) - Series 1996A (e) 01/01/19 6.25 9,315,000
4,100,000 Maryland HEFA RB (North Arundale Hospital) (e)
LOC Mellon Bank, N.A. 07/01/27 6.30 4,100,000
3,940,000 Maximum Principal Amount Limited Partnership
(Riverview Medical Office Building) (e)
LOC National City Bank 11/01/17 6.18 3,940,000
</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>
$ 2,400,000 Maximum Principal Amount (Buckeye Corrugated, Inc. Project) (e)
LOC National City Bank 01/01/05 6.18% $ 2,400,000
1,485,000 Maximum Principal Amount (Goson Project) (e)
LOC FirstMerit Bank 08/01/23 6.26 1,485,000
5,200,000 Maximum Principal Amount (Hanover Project) (e)
LOC National City Bank 12/01/07 6.18 5,200,000 A1
3,300,000 McCreary County, KY (Le Sportsac, Inc. Pro-Phase) (e)
LOC Fifth Third Bank 04/01/15 6.18 3,300,000
2,205,000 Miami River Stone Company (e)
LOC Firstar Bank, N.A. 08/01/09 6.22 2,205,000
1,000,000 Miami Valley Steel Service, Incorporated - Series 1996 (e)
LOC National City Bank 02/01/16 6.18 1,000,000
2,670,000 Michigan HEFA (Hope College) - Series 1996M (e)
LOC Old Kent Bank & Trust Company 10/01/16 6.25 2,670,000
1,000,000 Milwaukee, WI (Historic Third Ward Parking Project) (e)
LOC Northern Trust 09/01/29 6.25 1,000,000
5,790,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Incorporated) - Series 1995 (e)
LOC National Bank of Detroit 06/01/10 6.35 5,790,000 P1
9,005,000 Mobile, AL RB Medical Clinic Board
(Springhill Medical Complex) - Series 1996B (e)
LOC Amsouth Bank, N.A. 09/01/11 6.12 9,005,000 P1
3,640,000 NPI Capital, LLC (e)
LOC Michigan National Bank 07/01/29 6.25 3,640,000
4,025,000 New Federal Cold Storage, Incorporated Project - Series 199C (e)
LOC National City Bank 08/01/11 6.18 4,025,000
3,200,000 New York State HFA RB (345 East 94th Street) (e)
LOC Key Bank 11/01/31 6.25 3,200,000 VMIG-1
10,850,000 Nugent Sand Co - Series 1999 (e)
LOC National City Bank 11/01/11 6.18 10,850,000
2,600,000 Oakland Ortho Realty Association (e)
LOC PNC Bank, N.A. 09/01/09 4.00 2,600,000
8,080,000 One Boyertown Prop. LP (e)
Collateralized by Federal Home Loan Bank 11/01/29 6.20 8,080,000 A1+
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
<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>
$ 4,400,000 Oxnard Financing Authority Refunding Lease RB - Series 1993 (e)
LOC Union Bank of California 06/01/06 6.25% $ 4,400,000 A1
1,700,000 Pomeroy Investments, LLC - Series 1997 (e)
LOC Firstar Bank, N.A. 04/01/17 6.27 1,700,000
2,800,000 Prince William County, VA - Series A (e)
LOC Wachovia Bank & Trust Company, N.A. 03/01/17 6.15 2,800,000 VMIG-1
2,010,000 RK Capital LLC (e)
LOC Michigan National Bank 12/01/28 6.25 2,010,000
5,360,000 Security Self-Storage, Inc. (e)
LOC Bank One 01/01/19 6.15 5,360,000
4,320,000 Shepperd Capital L.L.C. (e)
LOC First of America 09/15/47 6.25 4,320,000
4,495,000 Shepperd Capital L.L.C. (e)
LOC Old Kent Bank & Trust Company 03/15/49 6.25 4,495,000
15,000,000 SMM Trust 1999 - A (i) 09/13/00 6.15 15,000,000 P1 A1+
17,600,000 Southwestern Ohio Steel, Incorporated (e)
LOC Firstar Bank, N.A. 04/01/08 6.22 17,600,000
1,820,000 Stallard-Schrier Corporation (e)
LOC Fifth Third Bank 09/01/16 6.25 1,820,000
19,000,000 State of Missouri HEFA
(SSM Health Care System) 1995 - Series D (e)
Insured by MBIA Insurance Corp. 06/01/24 6.12 19,000,000 A1+
3,000,000 Stevenson Photo Color Company (e)
LOC Firstar Bank, N.A. 08/01/19 6.22 3,000,000
12,370,000 Stone Creek, L.L.C. - Series 1995 (e)
LOC Columbus Bank & Trust Company 08/01/22 6.20 12,370,000 P1
2,975,000 Team Capital, L.L.C. (e)
LOC Old Kent Bank & Trust Company 03/01/29 6.25 2,975,000
7,670,000 Three Reading LP (e)
Guaranteed by Federal Home Loan Bank 06/01/24 6.20 7,670,000 A1+
1,745,000 Town of Greendale, IN EDA RB - Series 1993B (e)
LOC National City Bank 12/01/05 6.18 1,745,000
1,465,000 Tripplet Corporation (e)
LOC Fifth Third Bank 03/01/08 6.25 1,465,000
</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>
$ 2,375,000 Vista Funding Corporation - Series 1997A (e)
LOC Fifth Third Bank 07/01/15 6.20% $ 2,375,000
1,435,000 Walt Sweeney Ford - Series 1996 (e)
LOC Fifth Third Bank 01/01/12 6.25 1,435,000
2,510,000 Washington State Housing Finance Commission
(Marketplace Apt) (e)
LOC Bank One 07/01/29 6.15 2,510,000 VMIG-1
2,045,000 Weller Irrevocable Trust #2 - Series 1998 (e)
LOC First Union National Bank of North Carolina 09/01/13 6.20 2,045,000 A1
3,070,000 Westchester County, NY IDA RB (B.W.P. Distributors Inc.) (e)
LOC First Union National Bank of North Carolina 10/01/28 6.19 3,070,000
830,000 Westchester Presbyterian Church (e)
LOC Firstar Bank, N.A. 09/01/13 6.42 830,000
1,970,000 William Thies & Son, Incorporated (e)
LOC First Union National Bank of North Carolina 03/01/07 6.19 1,970,000
2,000,000 Wilmington Iron & Metal Company (e) 08/01/14 6.20 2,000,000
7,891,979 Wilmington Trust Company (e) 01/01/11 6.11 7,891,979 P1 A1+
12,500,000 Winder-Barrow Industrial Building(e)
LOC Columbus Bank & Trust Company 02/01/20 6.20 12,500,000 A1
------------ ------------
526,097,850 Total Other Notes 526,097,850
------------ ------------
<CAPTION>
Repurchase Agreement, Overnight (2.04%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 37,000,000 The Goldman Sachs Group L.P. (Collateralized by $43,995,997,
GNMA, 6.28% to 7.500%, due 02/15/28 to 08/16/29,
proceeds $37,740,001) 04/03/00 6.13% $ 37,000,000
------------ ------------
37,000,000 Total Repurchase Agreement, Overnight 37,000,000
------------ ------------
<CAPTION>
U.S. Treasury Bills (0.54%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 U.S. Treasury Bills 08/24/00 5.94% $ 9,767,597
------------ ------------
10,000,000 Total U.S. Treasury Bills 9,767,597
------------ ------------
<CAPTION>
Time Deposits (8.81%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 80,000,000 Bank One 04/03/00 6.32% $ 80,000,000 P1 A1+
35,000,000 National Bank of Canada 04/03/00 6.31 35,000,000 P1 A1
45,000,000 Westdeutsche Landesbank 04/03/00 6.31 45,000,000 P1 A1+
------------ ------------
160,000,000 Total Time Deposits 160,000,000
------------ ------------
</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
------ ---- ----- ------ ------- --------
Yankee Certificates of Deposit (3.85%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 Bank of Montreal 05/08/00 5.23% $ 9,999,512 P1 A1+
20,000,000 Bayerische Hypo-und Vereinsbank, A.G. 05/04/00 5.23 19,999,043 P1 A1
15,000,000 Commerzbank, A.G. 05/18/00 5.32 14,999,071 P1 A1+
15,000,000 Deutsche Bank, A.G. 05/22/00 5.40 14,999,194 P1 A1+
10,000,000 Union Bank of Switzerland 07/05/00 5.80 9,999,004 P1 A1+
------------ -------------
70,000,000 Total Yankee Certificates of Deposit 69,995,824
------------ -------------
Total Investments (100.51%) (Cost $1,826,319,039+) $1,826,319,039
Liabilities in excess of cash and other assets (-0.51%) ( 9,315,638)
-------------
Net Assets (100.00%) $1,817,003,401
+ Aggregate cost for federal income tax purposes is identical =============
</TABLE>
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 monthly based upon one month LIBOR.
(c) The interest rate is adjusted monthly based upon one month LIBOR plus .14
basis point.
(d) The interest rate is adjusted monthly based upon one month LIBOR rate plus
5 basis point; 7 day put option.
(e) These securities have a 7 day put feature exercisable by the Fund at par
value. Rate changes weekly.
(f) The interest rate is adjusted daily based upon prime rate minus 2.87%.
(g) The interest rate is adjusted weekly based upon one month LIBOR minus 1
basis point; weekly put option.
(h) The interest rate is adjusted quarterly based upon LIBOR plus .08 basis
point.
(i) The interest rate is adjusted quarterly based upon three month LIBOR plus
12 basis points
(j) These securities are split rated. Having top tier rating from at least two
national securities rating agencies.
(k) The interest rate is adjusted daily based upon three month LIBOR plus 5
basis points.
(l) The interest rate adjusts weekly average of prior week one month LIBOR,
weekly put.
(m) The interest rate is adjusted daily based upon prime rate minus 2.76%.
(n) The interest rate is adjusted quarterly based upon three month LIBOR plus
.06 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 MHRB = Multi-Family Housing Revenue Bond
HFA = Housing Finance Authority RB = Revenue Bond
HEFA = Health & Education Facilities Authority VR = Variable Rate
IDA = Industrial Development Authority
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS
MARCH 31, 2000
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- ------
Agency Discount Notes (26.81%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,500,000 Federal Farm Credit Bank 04/25/00 4.95% $ 3,489,010
2,634,000 Federal Home Loan Bank 04/14/00 6.01 2,628,303
2,000,000 Federal Home Loan Bank 05/15/00 5.90 1,985,920
2,062,000 Federal Home Loan Bank 05/25/00 5.90 2,044,030
2,265,000 Federal Home Loan Mortgage Corporation 04/03/00 6.05 2,264,239
6,000,000 Federal Home Loan Mortgage Corporation 04/11/00 5.82 5,990,358
2,000,000 Federal Home Loan Mortgage Corporation 04/25/00 6.03 1,992,000
3,000,000 Federal Home Loan Mortgage Corporation 05/04/00 5.83 2,984,187
3,000,000 Federal Home Loan Mortgage Corporation 06/08/00 5.97 2,966,680
3,000,000 Federal Home Loan Mortgage Corporation 08/17/00 6.11 2,931,805
2,480,000 Federal National Mortgage Association 04/27/00 6.03 2,469,253
3,000,000 Federal National Mortgage Association 05/04/00 5.85 2,984,146
3,000,000 Federal National Mortgage Association 05/11/00 5.63 2,981,733
2,000,000 Federal National Mortgage Association 05/25/00 5.79 1,983,110
2,000,000 Federal National Mortgage Association 05/26/00 5.85 1,982,583
5,000,000 Federal National Mortgage Association 06/08/00 5.89 4,945,506
3,000,000 Federal National Mortgage Association 08/03/00 6.07 2,939,137
------------ ------------
49,941,000 Total Agency Discount Notes 49,562,000
------------ ------------
<CAPTION>
Floating Rate Securities (11.90%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 15,000,000 Federal Home Loan Bank Floater (a) 07/31/00 6.07% $ 15,004,052
5,000,000 Federal Home Loan Bank Floater (b) 10/04/00 5.91 4,998,253
2,000,000 Federal Home Loan Bank Floater (c) 10/10/00 6.13 2,000,000
------------ ------------
22,000,000 Total Floating Rate Securities 22,002,305
------------ ------------
<CAPTION>
Government Agencies (5.15%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 Federal Home Loan Bank 05/11/00 5.05% $ 1,999,932
2,000,000 Federal Home Loan Bank 05/24/00 5.21 2,000,000
825,000 Federal Home Loan Bank 06/08/00 5.93 824,855
2,700,000 Federal Home Loan Bank 06/23/00 5.92 2,697,260
2,000,000 Federal Home Loan Bank 08/24/00 5.95 2,000,000
------------ ------------
9,525,000 Total Government Agencies 9,522,047
------------ ------------
<CAPTION>
Government Agency Medium Term Noes (8.38%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,000,000 Federal Home Loan Bank 04/28/00 4.97% $ 2,999,915
5,500,000 Federal Home Loan Bank 05/19/00 5.22 5,499,075
2,000,000 Federal Home Loan Bank 10/06/00 6.02 2,000,000
3,000,000 Federal National Mortgage Association 05/19/00 5.57 2,997,418
2,000,000 Federal National Mortgage Association 12/07/00 6.18 1,993,812
------------ ------------
15,500,000 Total Government Agency Medium Term Notes 15,490,220
------------ ------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- ------
Repurchase Agreements, Overnight (47.07%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 45,000,000 Goldman Sachs Group L.P. (Collateralized by $54,070,987,
GNMAs, 6.330% to 7.500%, due 12/20/25 to 02/15/28,
proceeds $45,900,001) 04/03/00 6.13% $ 45,000,000
42,000,000 Solomon Smith Barney (Collateralized by $50,379,459, GNMA,
6.000%, due 2/20/24, proceeds $42,840,001) 04/03/00 6.13 42,000,000
------------ -----------
87,000,000 Total Repurchase Agreements, Overnight 87,000,000
------------ -----------
Total Investments (99.31%) (Cost $183,576,572+) $183,576,572
Cash and Other Assets, Net of Liabilities (0.69%) 1,270,185
-----------
Net Assets (100%) $184,846,757
===========
+ Aggregate cost for income tax purposes is identical.
</TABLE>
FOOTNOTES:
(a) This is a variable Federal Home Loan Bank Floating Rate Note. The interest
rate changes weekly based on 3 month T-Bill BEY plus 38.5 basis points.
(b) This is a variable Federal Home Loan Bank Floating Rate Note. The interest
rate changes quarterly based on 3 month LIBOR minus .16 basis points.
(c) This is a variable Federal Home Loan Bank Floating Rate Note. The interest
rate changes daily pegged to Prime minus 2.87 basis points.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Tax Exempt Investments (18.42%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,000,000 City of Lima, OH School District 08/01/00 4.18% $ 4,005,141
5,065,000 City of Kelso, WA GAN - Series 2000 02/25/01 4.50 5,065,000
2,885,000 City of Wichita, KS GO 04/27/00 3.15 2,885,596 MIG-1 SP-1+
2,095,000 Commonwealth of Kentucky State & Buildings Commissions RB 05/01/00 3.64 2,095,965
6,500,000 Harford County, MD (A.O. Smith Project)
LOC Bank One 09/01/00 4.40 6,500,000
1,250,000 Illinois Sports Facility Authority RB - Series A
Insured by MBIA Insurance Corp. 06/15/00 3.29 1,251,622
5,000,000 Kentucky Interlocal School Association TRAN 06/30/00 3.49 5,005,307 MIG-1 SP-1+
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 3.24 2,013,949
1,000,000 New Mexico State Highway Commission
Senior Subordinate Tax Revenue Highway Bond 06/15/00 3.13 1,001,950
2,000,000 North Dakota HFA (Home Mortgage Finance Project)
GIC Bayerische Landesbank Girozentrale 09/29/00 3.80 2,000,000
1,500,000 North Dakota HFA RB - Series C
GIC Trinity Funding 04/01/00 3.20 1,500,000 MIG-1
650,000 Pecatonia, WI Area School District 11/01/00 3.98 650,327
5,000,000 State of Texas TRAN 08/31/00 3.64 5,016,054 MIG-1 SP-1+
2,250,000 Whitnall School District 10/27/00 3.89 2,253,817
3,000,000 Wisconsin School Cash Flow 11/01/00 4.30 3,000,000
1,000,000 Wisconsin State Health & Education Authority (Aurora Health Care)
Insured by MBIA Insurance Corp. 08/15/00 3.58 1,003,245
------------ ------------
49,195,000 Total Other Tax Exempt Investments 49,247,973
------------ ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (57.95%)
------------------------------------------------------------------------------------------------------------------------------------
<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 4.10% $ 1,000,000 VMIG-1
250,000 Amelia County, VA IDRB
LOC Morgan Guaranty Trust Company 07/01/07 4.00 250,000 VMIG-1
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
<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>
$ 4,335,000 Arkansas Development Finance Authority
(Conestoga Wood Specialties Project)
LOC First Union National Bank 07/01/08 4.10% $ 4,335,000
5,455,000 Auburn, AL Non-Profit HDA (Lakeside Project)
LOC Columbus Bank & Trust Company 09/01/27 4.15 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 4.20 1,100,000
2,000,000 Calcasieu Parish, LA Public Trust Authority
(Solid Waste Disposal)
LOC Morgan Guaranty Trust Company 12/01/27 4.00 2,000,000 A1+
4,000,000 City of Valdez, AK Marine Terminal (Exxon Pipeline) 10/01/25 3.95 4,000,000 P1 A1+
9,115,000 Clipper, HI HFDA 07/24/03 4.11 9,115,000 VMIG-1
2,200,000 Colorado Regional Transportation District
(Transit Vehicles Project) - Series A
LOC State Street Bank & Trust Company 12/01/17 3.95 2,200,000 A1+
10,700,000 Dade County, FL IDA RB (Power & Light) 06/01/21 3.95 10,700,000 VMIG-1 A1+
1,000,000 Delta County, MI EDC (Mead Escanaba) - Series D
LOC Credit Suisse First Boston 12/01/23 3.95 1,000,000 P1
3,500,000 Deridder, LA IDRB (Pax Inc. Project)
LOC Bank One 08/01/12 4.15 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 4.00 8,250,000
1,400,000 District of Columbia COPS (Tyler House Trust) - Series 1995A
LOC Landesbank Hessen 08/01/25 4.10 1,400,000 VMIG-1
2,300,000 Emery County, UT PCRB
Insured by AMBAC Indemnity Corp. 11/01/24 4.00 2,300,000 P1 A1+
10,000,000 Emmaus, PA General Authority Local Government Assistance
GIC Goldman Sachs 03/01/24 3.90 10,000,000 A1+
6,445,000 Fulton County, GA MHRB (Greenhouse Holcomb Project)
Guaranteed by Federal National Mortgage Association 04/01/30 3.90 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 4.25 1,140,000
3,000,000 Georgia State Morgan Stanley Floating Rate Trust 11/01/10 3.96 3,000,000
1,700,000 Illinois HFA (Resurrection Health Care Service)
Insured by FSA 05/15/29 4.00 1,700,000 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>
$ 4,000,000 Jacksonville, FL Electric Authority RB 10/01/10 4.00% $ 4,000,000 VMIG-1 A1+
3,000,000 Jefferson County, KY Industrial Building
(Fetter Printing Company Project)
LOC PNC Bank, N.A. 05/01/10 4.10 3,000,000
2,000,000 Kansas State Devlopement Authority (Village Shalom Obligation )
LOC LaSalle National Bank 11/15/28 4.00 2,000,000 A1+
3,800,000 Lebanon, MO IDA IDRB (Durham Company Project)
LOC Commerce Bank Missouri 01/01/19 4.15 3,800,000 P1
1,250,000 Liberty County, GA Industrial Authority (Harbin Lumber Company)
LOC Suntrust Bank 04/01/14 4.10 1,250,000
1,500,000 Louisville & Jefferson Counties Regional Airport System - Series AA
LOC National City Bank 06/30/02 4.05 1,500,000 VMIG-1
1,575,000 Lynchburg, VA IDA (AEROFIN Corp. Project)
LOC PNC Bank, N.A. 03/01/29 4.10 1,575,000
1,100,000 Maricopa County, AZ PCRB (Arizona Public Service Palo V)
LOC Bank of America 05/01/29 3.95 1,100,000 P1 A1+
1,000,000 Michigan Strategic Fund (Consumers Power Co.) - Series 1988
Insured by AMBAC Indemnity Corp. 04/15/18 3.95 1,000,000 VMIG-1
1,100,000 Michigan Strategic Fund (Detroit Edison Co)
LOC Barclays Bank 09/01/30 4.00 1,100,000 P1 A1+
700,000 New Albany, IN EDA RB (Bert R. Huncilman & Son) - Series A
LOC PNC Bank, N.A. 04/01/06 4.10 700,000
2,700,000 New York City, NY GO - Subseries A-5
LOC KBC Bank 08/01/15 4.00 2,700,000 VMIG-1 A1+
2,400,000 North Central Texas Health Facility (Methodist Hospitals of Dallas)
Insured by MBIA/LOC Rabobank 10/01/15 4.00 2,400,000 A1+
2,000,000 Ocean Highway and Port Authority, FL
Port, Airport, and Marina Improvement
LOC ABN AMRO Bank 12/01/20 4.00 2,000,000 VMIG-1 A1+
1,300,000 Ohio State Air Quality Development Authoriy
(Cincinnati Gas & Electric) - Series B
LOC Morgan Guaranty Trust Company 12/01/15 4.10 1,300,000 A1+
2,000,000 Ouachita Parish, LA IDB (EPCO Carbondioxide Project)
LOC Bank One 02/01/05 4.05 2,000,000 P1
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
<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>
$ 425,000 Pennsylvania EDFA (Tri State Hyraulics Inc.) - Series 1996D-7
LOC PNC Bank, N.A. 08/01/06 4.10% $ 425,000
2,000,000 Pennsylvania EDFA RB (Trigon Incorporated)
LOC PNC Bank, N.A. 08/01/05 4.10 2,000,000
1,200,000 Pennsylvania EDFA (Plastikos Reality Project) - Series 1997E
LOC PNC Bank, N.A. 11/01/12 4.10 1,200,000
2,000,000 Philadelphia, PA Hospital & Higher Education
(Children's Hospital Project) - Series A 03/01/27 3.95 2,000,000 VMIG-1 A1+
2,500,000 Port of Corpus Christie Nueces County, TX
(Koch Refining Co.) - Series 1995A 05/01/25 3.85 2,500,000 VMIG-1 A1+
2,300,000 Port of Port Authority Navigation (Jefferson County for Texaco) 10/01/24 4.00 2,300,000 VMIG-1 A1
800,000 Portland, OR IDRB (Oregon Transfer Company)
LOC US National Bank of Oregon 11/01/01 4.52 800,000
2,490,000 Prattville, AL IDRB (Merchant Realty Co.)
LOC Amsouth Bank 03/01/26 4.10 2,490,000 A1
2,050,000 Raleigh-Durham, NC (American Airlines)
LOC Bank of America 11/01/15 4.00 2,050,000 A1+
950,000 Richmond, GA Solid Waste RB (Evergreen Nylon Recycling)
LOC Banque National de Paris 07/01/32 3.95 950,000 P1 A1
4,000,000 South Carolina Jobs EDA RB (Village Blacksmith Inc. Project)
LOC Marshall & Ilsley 04/01/14 4.10 4,000,000
7,000,000 Sussex County, DE IDRB (Perdue Farms Inc. Project) - Series 1992
LOC Rabobank Nederland 04/01/12 4.10 7,000,000
1,715,000 Talbot County, GA Development Authority IDRB
(Douglas Asphalt Company Project)
LOC First Union National Bank 04/01/08 4.10 1,715,000
6,400,000 Town of Hurley, NM PCRB (Kennecott British Petroleum) 12/01/15 3.95 6,400,000 P1 A1+
3,940,000 Town of York, ME (Stonewall Realty LLC Project)
LOC Citizen Bank of Rhode Island 06/01/19 4.05 3,940,000 VMIG-1
3,000,000 Washington State Housing Finance (Emerald Heights Project)
LOC US Bank NA 01/01/21 4.05 3,000,000 A1+
600,000 Westmoreland County, PA IDRB (Solidur Plastics Estate Project)
LOC PNC Bank, N.A. 12/01/02 4.10 600,000
1,250,000 York County, PA IDA Limited Obligation RB
(Metal Exchange Corporation Project) - Series 1996
LOC Comerica Bank 06/01/06 4.15 1,250,000
------------ ------------
154,935,000 Total Other Variable Rate Demand Instruments 154,935,000
------------ ------------
</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) (5.89%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,000,000 City of Chicago, IL GO Tender Notes
LOC Landesbank Hessen 12/07/00 3.90% $ 3,000,000 VMIG-1 SP-1+
1,620,000 Dayton, KY Building RB - Series 1994C
LOC Fifth Third Bank 04/03/00 3.85 1,620,000
3,175,000 Louisiana HFA Single Family Mortgage RB - Series C
GIC Trinity Funding 06/01/00 3.35 3,175,000 MIG-1 SP-1+
1,000,000 Michigan Strategic Fund (Donnelly Corp. Project) - Series 1988
LOC Dresdner Bank A.G. 04/01/00 3.85 1,000,000 P1 A1+
4,000,000 New Hampshire Business Finance Authority PCRB
(New England Power Company) 04/24/00 3.70 4,000,000
2,960,000 Vermont State Educational & Health Building Finance Agency
(Middlebury College) 11/01/00 3.85 2,960,000 A1+
------------ ------------
15,755,000 Total Put Bonds 15,755,000
------------ ------------
<CAPTION>
Revenue Bond (0.37%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 State of Oregon Housing & Community
(Single Family Mortgage Program)
Collateralized by U.S. Government Agencies 11/02/00 3.95% $ 1,000,000 MIG-1
------------ ------------
1,000,000 Total Revenue Bond 1,000,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (11.75%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,700,000 Anne Arundel EDRB (Baltimore Gas & Electric Company Project)
LOC Chase Manhattan Bank, N.A./Bank of New York 05/02/00 3.90% $ 5,700,000 VMIG-1 A1
6,000,000 City of Austin, TX
LOC Morgan Guaranty Trust Company 04/06/00 3.85 6,000,000 P1 A1+
5,720,000 Broward County, FL 04/13/00 3.65 5,720,000 VMIG-1 A1+
2,000,000 City & County of Denver, CO
Airport System Subordinate RB - Series 1997A
LOC Bayerische Landesbank Girozentrale 04/07/00 3.80 2,000,000 P1 A1+
4,000,000 Lee County, FL Hospital Board HRB
(Lee Memorial Hospital Project) 04/10/00 3.70 4,000,000 VMIG-1 A1+
6,000,000 Lee County, FL Hospital Board HRB
(Lee Memorial Hospital Project) 05/02/00 3.95 6,000,000 VMIG-1 A1+
2,000,000 Venango, PA IDA Resource Recovery RB
(Scrubgrass Project) - Series B
LOC National Westminster Bank PLC 04/07/00 3.80 2,000,000 P1 A1+
------------ ------------
31,420,000 Total Tax Exempt Commercial Paper 31,420,000
------------ ------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments - Participations (b) (0.75%)
------------------------------------------------------------------------------------------------------------------------------------
<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 5.85% $ 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 5.85 1,000,000 P1 A1
------------ -----------
2,000,000 Total Variable Rate Demand Instruments - Participations 2,000,000
------------ -----------
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 4.35% $ 9,100,000
110,137 New Jersey State EDA IDRB (Heary Modelle & Company)
LOC Chase Manhattan Bank, N.A. 09/01/00 5.85 110,137 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 5.85 2,062,000 P1 A1
------------ -----------
11,272,137 Total Variable Rate Demand Instruments - Private Placements 11,272,137
------------ -----------
Total Investments (99.35%) (Cost $265,630,110+) $265,630,110
Cash and Other Assets, Net of Liabilities (0.65%) 1,736,957
-----------
Net Assets (100.00%) $267,367,067
===========
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings noted (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 on 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>
COPS = Certificate of Participation HFA = Housing Finance Authority
EDA = Economic Development Authority HFDA = Housing Finance Development Authority
EDC = Economic Development Commission 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
FSA = Financial Security Assurance LOC = Letter of Credit
GAN = Grant Anticipation Notes MHRB = Multi-Family Housing Revenue Bond
GIC = Guaranteed Investment Contract PCRB = Pollution Control Revenue Bond
GO = General Obligation RB = Revenue Bond
HDA = Housing Development Authority TRAN = Tax and Revenue Anticipation Note
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
-------------------------- ----------------------- ----------------------
ASSETS:
<S> <C> <C> <C>
Investments in securities*........... $ 1,826,319,039 $ 183,576,572 $ 265,630,110
Cash................................. 2,071,681 404,452 --
Interest receivable.................. 8,335,629 892,232 1,810,037
------------------ ----------------- ------------------
Total Assets..................... 1,836,726,349 184,873,256 267,440,147
LIABILITIES:
Dividends payable.................... 254,207 25,774 22,364
Due to custodian..................... -- -- 48,101
Payable for securities purchased..... 19,360,978 -- --
Payable for shares redeemed.......... -- -- --
Other accounts payable............... 107,763 725 2,615
------------------ ----------------- ------------------
Total Liabilities................ 19,722,948 26,499 73,080
------------------ ----------------- ------------------
NET ASSETS............................ $ 1,817,003,401 $ 184,846,757 $ 267,367,067
================== ================= ==================
<CAPTION>
SHARES OUTSTANDING:
<S> <C> <C> <C>
Cortland Shares...................... 834,821,207 58,124,275 54,796,701
Live Oak Shares...................... 983,405,181 70,084,266 54,136,558
Bradford Shares...................... -- 56,647,774 158,455,583
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 $37,000,000 and $87,000,000
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
YEAR ENDED MARCH 31, 2000
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
INVESTMENT INCOME
<S> <C> <C> <C>
Interest Income......................... $ 91,104,905 $ 10,125,950 $ 10,238,549
---------------- --------------- ----------------
Expenses:
Management fee--Note 3(a)............ 12,573,363 1,465,992 2,196,430
Distribution support and services
----Note 3(c):
Cortland shares.................. 1,935,871 158,595 138,593
Live Oak shares.................. 1,759,696 143,426 118,794
Bradford shares.................. -- 144,233 435,239
Other expenses....................... 178,299 40,088 60,158
---------------- --------------- ----------------
Total Expenses................... 16,447,229 1,952,334 2,949,214
Expenses waived by
Manager--Note 3(c)................... ( 711,292) ( 413,685) ( 332,291)
---------------- --------------- ----------------
Net Expenses..................... 15,735,937 1,538,649 2,616,923
---------------- --------------- ----------------
Net Investment Income................... 75,368,968 8,587,301 7,621,626
<CAPTION>
NET REALIZED GAIN
ON INVESTMENTS
<S> <C> <C> <C>
Net realized gain (loss) on investments 200,388 10,690 ( 307)
---------------- --------------- ----------------
Increase in net assets from operations.. $ 75,569,356 $ 8,597,991 $ 7,621,319
================ =============== ================
</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,
2000 1999 2000 1999 2000 1999
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income....... $ 75,368,968 $ 55,494,037 $ 8,587,301 $ 7,643,500 $ 7,621,626 $ 7,673,266
Net realized gain (loss) on
investments................ 200,388 446,452 10,690 21,372 ( 307) 3,195
------------- ------------- ------------- ------------- ------------- -------------
Increase in net assets
from operations............ 75,569,356 55,940,489 8,597,991 7,664,872 7,621,319 7,676,461
Distributions
to shareholders from:
Net investment income:
Cortland shares............ ( 35,013,844) ( 25,151,926) ( 2,702,014) ( 2,235,590) ( 1,411,334)+ ( 1,191,766)+
Live Oak shares............ ( 40,075,444) ( 30,731,761) ( 3,098,670) ( 3,092,403) ( 1,522,196)+ ( 1,664,742)+
Bradford shares............ -- -- ( 2,548,780) ( 2,336,645) ( 4,688,096)+ ( 4,816,758)+
Capital share
transactions net (Note 4):
Cortland shares............ 174,168,088 154,411,380 ( 6,394,572) 16,374,315 5,559,708 1,452,471
Live Oak shares............ 169,649,225 202,978,164 ( 9,001,893) 12,157,220 (15,992,057) 2,426,549
Bradford shares............ -- -- ( 5,528,757) 10,509,430 (24,386,807) 10,512,085
------------- ------------- ------------- ------------- ------------- -------------
Total increase (decrease)... 344,297,381 357,446,346 ( 20,676,695) 39,041,199 (34,819,463) 14,394,300
Net assets:
Beginning of year........... 1,472,706,020 1,115,259,674 205,523,452 166,482,253 302,186,530 287,792,230
------------- ------------- ------------- ------------- ------------- -------------
End of year................. $1,817,003,401 $1,472,706,020 $ 184,846,757 $ 205,523,452 $ 267,367,067 $ 302,186,530
============= ============= ============= ============= ============= =============
Undistributed net
investment income.......... $ 425,333 $ 145,653 $ 643,976 $ 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
MARCH 31, 2000
================================================================================
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, 2000, there were
46,226,865 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, 2000
================================================================================
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,
2000, Cortland General Fund, U.S. Government Fund and Municipal Fund had unused
capital loss carryforwards of approximately $1,648,320, $675,978 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 $43,454 and $1,604,866 will expire in the years 2003 and 2004,
respectively, for Cortland General Fund. $224,737 and $451,241 will expire in
the years 2003 and 2004, respectively, for U.S. Government Fund. $13,541, $3,530
and $11869 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 Companys 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, 2000, the Manager voluntarily waived investment
management fees of $550,000 and $250,000, respectively, for the General Fund and
the U.S. Government Fund.
During the year ended March 31, 2000, the Distributor waived Distribution
support and services fees of $161,292 for the Cortland shares of the Cortland
General Fund.
During the year ended March 31, 2000, the Distributor waived Distribution
support and services fees of $19,640, $39,606 and $104,439 for the Cortland
shares, Live Oak shares and Bradford shares, respectively, of the U.S.
Government Fund.
During the year ended March 31, 2000, the Distributor waived Distribution
support and services fees of $17,139 and $315,152 for the Cortland shares,
Bradford shares, respectively, of the Municipal Fund.
Note 4-Capital Share Transactions:
At March 31, 2000, 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 Money Municipal 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,
2000 1999 2000 1999 2000 1999
------------- ------------- ------------- ------------- ------------- --------------
Cortland Shares
<S> <C> <C> <C> <C> <C> <C>
Shares sold.............. 3,059,760,102 2,036,496,592 168,267,194 163,731,205 221,284,696 195,007,740
Dividends reinvested..... 35,010,239 25,195,494 2,704,118 2,241,098 1,410,312 1,193,378
------------- ------------- ------------- ------------- ------------- --------------
3,094,770,341 2,061,692,086 170,971,312 165,972,303 222,695,008 196,201,118
Shares redeemed.......... (2,920,602,253) (1,907,280,706) ( 177,365,884) ( 149,597,988) ( 217,135,300) ( 194,748,647)
------------- ------------- ------------- ------------- ------------- --------------
Net increase (decrease).. 174,168,088 154,411,380 ( 6,394,572) 16,374,315 5,559,708 1,452,471
============= ============= ============= ============= ============= ==============
Live Oak Shares
Shares sold.............. 4,969,169,402 3,636,474,938 335,103,483 397,622,269 224,660,999 287,227,233
Dividends reinvested. 39,989,550 30,668,616 3,091,980 3,078,766 1,519,730 1,661,013
------------- ------------- ------------- ------------- ------------- --------------
5,009,158,952 3,667,143,554 338,195,463 400,701,035 226,180,729 288,888,246
Shares redeemed.......... (4,839,509,727) (3,464,165,390) ( 347,197,356) ( 388,543,815) ( 242,172,786) ( 286,461,697)
------------- ------------- ------------- ------------- ------------- --------------
Net increase............. 169,649,225 202,978,164 ( 9,001,893) 12,157,220 ( 15,992,057) 2,426,549
============= ============= ============= ============= ============= ==============
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
Note 4-Capital Share Transactions: (Continued)
<TABLE>
<CAPTION>
Municipal Money
U.S. Government Fund Market Fund
------------------------------- --------------------------------
For the Year Ended March 31, For the Year Ended March 31,
2000 1999 2000 1999
------------ ------------ ------------- -------------
Bradford Shares
<S> <C> <C> <C> <C>
Shares sold................ 190,418,716 250,607,502 740,328,316 732,865,165
Dividends reinvested....... 2,550,623 2,343,573 4,688,760 4,822,037
------------ ------------ ------------ ------------
192,969,339 252,951,075 745,017,076 737,687,202
Shares redeemed............ ( 198,498,096) ( 242,441,645) ( 769,403,883) ( 727,175,117)
------------ ------------ ------------ ------------
Net increase .............. ( 5,528,757) 10,509,430 ( 24,386,807) 10,512,085
============ ============ ============ ============
The components of net assets at March 31, 2000 are as follows:
<CAPTION>
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
---------------------- -------------------- ---------------------
<S> <C> <C> <C>
Paid-in capital............ $ 1,818,226,388 $ 184,856,315 $ 267,388,842
Accumulated net
realized losses........... ( 1,648,320) ( 653,534) ( 21,775)
Undistributed net
investment income......... 425,333 643,976 -0-
--------------- --------------- ---------------
Total net assets........... $ 1,817,003,401 $ 184,846,757 $ 267,367,067
=============== =============== ===============
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights:
<TABLE>
<CAPTION>
Cortland General Money Market Fund
--------------------------------------------------------------------------
Cortland Shares
--------------------------------------------------------------------------
For the Year Ended March 31,
--------------------------------------------------------------------------
2000 1999 1998 1997 1996
--------- ---------- ---------- ---------- ----------
<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 0.045 0.047 0.044 0.049
Net realized and unrealized
gain/(loss) on investments...... -- 0.001 ( 0.001) -- 0.001
--------- ---------- ---------- ---------- ----------
Total from investment operations. 0.045 0.046 0.046 0.044 0.050
Less distributions:
Dividends from net
investment income............... ( 0.045) ( 0.045) ( 0.047) ( 0.044) ( 0.048)
-------- -------- -------- -------- --------
Total distributions................. ( 0.045) ( 0.045) ( 0.047) ( 0.044) ( 0.048)
-------- -------- -------- -------- --------
Net asset value, end of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return........................ 4.60% 4.56% 4.77% 4.52% 4.95%
Ratios/Supplemental Data
Net assets,
end of year (000's omitted)...... $ 834,259 $ 659,890 $ 505,442 $1,160,352 $1,159,173
Ratios to average net assets:
Expenses......................... 0.97% 1.00% 0.99% 1.02% 1.03%
Net investment income............ 4.54% 4.41% 4.67% 4.41% 4.86%
Management and Distribution support
and service fees waived.......... 0.05% 0.03% 0.04% -- --
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Cortland General Money Market Fund
--------------------------------------------------------------------------
Live Oak Shares
--------------------------------------------------------------------------
For the Year Ended March 31,
--------------------------------------------------------------------------
2000 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............ 0.045 0.045 0.048 0.045 0.018
Net realized and unrealized
gain/(loss) on investments...... -- 0.001 ( 0.001) -- --
-------- -------- -------- -------- --------
Total from investment operations. 0.045 0.046 0.047 0.045 0.018
Less distributions:
Dividends from net
investment income............... ( 0.045) ( 0.045) ( 0.047) ( 0.045) ( 0.018)
------- ------- ------- ------- -------
Total distributions................. ( 0.045) ( 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........................ 4.63% 4.59% 4.84% 4.59% 4.78%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted) $ 982,744 $ 812,816 $ 609,818 $ 440,457 $ 351,030
Ratios to average net assets:
Expenses......................... 0.94% 0.98% 0.91% 0.95% 0.97%*
Net investment income............ 4.57% 4.43% 4.78% 4.48% 4.68%*
Management and Distribution support
and service fees waived.......... 0.03% -- 0.05% 0.02% 0.02%*
</TABLE>
* Annualized
+ Live Oak Shares commenced distribution on November 16, 1995.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
--------------------------------------------------------------------------
Cortland Shares
--------------------------------------------------------------------------
For the Year Ended March 31,
--------------------------------------------------------------------------
2000 1999 1998 1997 1996
--------- ---------- ---------- ---------- ----------
<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........... 0.043 0.042 0.046 0.043 0.047
Net realized and unrealized
(loss) on investments.......... -- 0.001 ( 0.001) ( 0.001) --
--------- ---------- --------- -------- ----------
Total from investment operations... 0.043 0.043 0.045 0.042 0.047
Less distributions:
Dividends from net
investment income.............. ( 0.043) ( 0.042) ( 0.045) ( 0.043) ( 0.047)
-------- -------- -------- -------- --------
Total distributions................ ( 0.043) ( 0.042) ( 0.045) ( 0.043) ( 0.047)
-------- -------- -------- -------- --------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return....................... 4.35% 4.33% 4.61% 4.37% 4.80%
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 58,121 $ 64,438 $ 48,069 $ 164,464 $ 255,222
Ratios to average net assets:
Expenses........................ 0.88% 1.00% 0.81% 1.01% 1.04%
Net investment income........... 4.38% 4.18% 4.58% 4.30% 4.72%
Management and Distribution support
and service fees waived........... 0.16% 0.04% 0.25% 0.02% --
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
--------------------------------------------------------------------------
Live Oak Shares
--------------------------------------------------------------------------
For the Year Ended March 31,
--------------------------------------------------------------------------
2000 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........... 0.043 0.043 0.049 0.044 0.017
Net realized and unrealized
(loss) on investments.......... -- 0.001 ( 0.001 ) ( 0.001 ) --
--------- --------- --------- --------- ----------
Total from investment operations 0.043 0.044 0.048 0.043 0.017
Less distributions:
Dividends from net
investment income.............. ( 0.043 ) ( 0.043 ) ( 0.046 ) ( 0.044 ) ( 0.017 )
--------- --------- --------- --------- ---------
Total distributions................ ( 0.043 ) ( 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....................... 4.43% 4.42% 4.75% 4.53% 4.74%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 70,080 $ 78,987 $ 66,829 $ 55,057 $ 47,328
Ratios to average net assets:
Expenses........................ 0.79% 0.91% 0.68% 0.86% 0.89%*
Net investment income........... 4.45% 4.29% 4.89% 4.45% 4.64%*
Management and Distribution support
and service fees waived........... 0.18% 0.08% 0.24% 0.12% 0.11%*
</TABLE>
* Annualized
+ Live Oak shares commenced distribution on November 16, 1995.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
-----------------------------------------------------------
Bradford Shares
-----------------------------------------------------------
For the Year Ended March 31,
-----------------------------------------------------------
2000 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........... 0.044 0.044 0.026
Net realized and unrealized
(loss) on investments.......... -- 0.001 ( 0.001 )
------------- ------------- -------------
Total from investment operations... 0.044 0.045 0.025
Less distributions:
Dividends from net
investment income.............. ( 0.044 ) ( 0.044 ) ( 0.024 )
------------ ------------ ------------
Total distributions................ ( 0.044 ) ( 0.044 ) ( 0.024 )
------------ ------------ ------------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00
============= ============= =============
Total Return....................... 4.51% 4.49% 4.83%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 56,645 $ 62,098 $ 51,584
Ratios to average net assets:
Expenses........................ 0.72% 0.85% 0.86%*
Net investment income........... 4.55% 4.37% 5.22%*
Management and Distribution support
and service fees waived........... 0.31% 0.19% 0.18%*
</TABLE>
* Annualized
+ Bradford shares commenced distribution on October 1, 1997.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Municipal Money Market
--------------------------------------------------------------------------
Cortland Shares
--------------------------------------------------------------------------
For the Year Ended March 31,
--------------------------------------------------------------------------
2000 1999 1998 1997 1996
--------- ---------- ---------- ---------- ----------
<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........... 0.026 0.025 0.028 0.026 0.030
--------- ---------- ---------- ---------- ----------
Total from investment operations... 0.026 0.025 0.028 0.026 0.030
Less distributions:
Dividends from net
investment income.............. ( 0.026) ( 0.025) ( 0.028) ( 0.026) ( 0.030)
------- ------- ------- ------- -------
Total distributions................ ( 0.026) ( 0.025) ( 0.028) ( 0.026) ( 0.030)
------- ------- ------- ------- -------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return....................... 2.58% 2.56% 2.81% 2.68% 3.06%
Ratios/Supplemental Data
Net assets,
end of year (000's omitted)..... $ 54,792 $ 49,234 $ 47,780 $ 153,322 $ 216,456
Ratios to average net assets:
Expenses........................ 1.00% 1.00% 1.01% 1.02% 1.03%
Net investment income........... 2.55% 2.51% 2.81% 2.64% 3.02%
Management and Distribution support
and service fees waived......... 0.03% 0.04% -- -- --
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Municipal Money Market
--------------------------------------------------------------------------
Live Oak Shares
---------------------------------------------------------------------------
For the Year Ended March 31,
---------------------------------------------------------------------------
2000 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........... 0.026 0.026 0.029 0.027 0.011
----------- ----------- ----------- ----------- -----------
Total from investment operations... 0.026 0.026 0.029 0.027 0.011
Less distributions:
Dividends from net
investment income.............. ( 0.026 ) ( 0.026 ) ( 0.029 ) ( 0.027 ) ( 0.011 )
---------- ---------- ---------- ---------- ----------
Total distributions................ ( 0.026 ) ( 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....................... 2.60% 2.60% 2.93% 2.77% 2.96%*
Ratios/Supplemental Data
Net assets,
end of period (000s omitted)...... $ 54,132 $ 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........... 2.56% 2.57% 2.86% 2.72% 2.91%*
Management and Distribution support
and service fees waived........... 0.00% 0.03% 0.07% 0.04% 0.03%*
</TABLE>
* Annualized
+ Live Oak shares commenced distribution on November 16, 1995.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Municipal Money Market
-----------------------------------------------------------
Bradford Shares
-----------------------------------------------------------
For the Year Ended March 31,
-----------------------------------------------------------
2000 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............... 0.027 0.027 0.014
------------- ------------- -------------
Total from investment operations.... 0.027 0.027 0.014
Less distributions:
Dividends from net
investment income................. ( 0.027 ) ( 0.027 ) ( 0.014 )
------------ ------------ ------------
Total distributions................. ( 0.027 ) ( 0.027 ) ( 0.014 )
------------ ------------ ------------
Net asset value, end of period...... $ 1.00 $ 1.00 $ 1.00
============= ============= =============
Total Return........................ 2.73% 2.71% 2.87%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 158,443 $ 182,829 $ 172,315
Ratios to average net assets:
Expenses............................ 0.85% 0.85% 0.86%*
Net investment income............... 2.69% 2.67% 2.81%*
Management and Distribution support
and service fees waived........... 0.18% 0.18% 0.17%*
</TABLE>
* Annualized
+ Bradford shares commenced distribution on October 1, 1997.
--------------------------------------------------------------------------------
<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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000, 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, 2000, 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
accounting principles generally accepted in the United States.
\S\Ernst & Young LLP
May 19, 2000
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, 2000
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>
