<PAGE>
--------------------------------------------------------------------------------
CORTLAND 600 Fifth Avenue
TRUST, INC. New York, NY 10020
212-830-5200
================================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of Cortland Trust, Inc. for the
period April 1, 2000 through September 30, 2000.
The Cortland General Money Market Fund had 133,315 shareholder accounts and net
assets of $1,829,078,203 as of September 30, 2000.
As of September 30, 2000, the U.S. Government Fund had 6,279 shareholder
accounts and net assets of $117,602,730.
As of September 30, 2000, the Municipal Money Market Fund had 2,532 shareholder
accounts and net assets of $115,894,424.
We thank you for your support of Cortland Trust, Inc., and look forward to
continuing to serve your cash management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Commercial Paper (32.28%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 Banco Santander Puerto Rico 10/18/00 6.57% $ 19,941,956 P1 A1+
30,000,000 Caterpillar Financial Services 02/15/01 6.72 29,263,333 P1 A1
45,000,000 Caterpillar Financial Services 04/12/01 6.69 43,459,200 P1 A1
19,375,000 Forrestal Funding Master Trust 12/07/00 6.65 19,143,404 P1 A1+
12,000,000 Great Lakes Funding Capital Corporation 10/04/00 6.58 11,995,647 P1 A1+
20,000,000 Great Lakes Funding Capital Corporation 10/18/00 6.56 19,942,044 P1 A1+
40,000,000 Great Lakes Funding Capital Corporation 10/23/00 6.57 39,847,633 P1 A1+
10,536,000 Great Lakes Funding Capital Corporation 10/31/00 6.61 10,480,238 P1 A1+
15,000,000 Island Finance Puerto Rico 06/08/01 6.76 14,332,888 P1 A1+
50,000,000 Lehman Brothers Holdings Inc. 10/11/00 6.51 49,921,250 P2 A1
25,000,000 Market Street Funding 10/05/00 6.55 24,986,417 P1 A1
25,000,000 Marsh USA 12/12/00 6.68 24,678,528 P1 A1+
12,000,000 Mississippi Business Finance Corporation
(Pascaqoula Processing Plant Project) 11/21/00 6.67 12,000,000 P1 A1+
20,000,000 Mississippi Business Finance Corporation
(Pascaqoula Processing Plant Project) 11/27/00 6.69 20,000,000 P1 A1+
30,000,000 MPF Limited 10/25/00 6.57 29,875,033 P1
21,000,000 MPF Limited 10/26/00 6.61 20,908,440 P1
27,475,000 MPF Limited 12/12/00 6.66 27,120,076 P1
25,000,000 National Rural Utilities Cooperative 03/13/01 6.65 24,275,500 P1 A1+
20,000,000 National Rural Utilities Cooperative 03/16/01 6.69 19,406,917 P1 A1+
25,000,000 National Rural Utilities Cooperative 03/27/01 6.65 24,214,111 P1 A1+
20,000,000 Paine Webber Group (i) 10/26/00 6.76 19,911,333 P2 A2
10,000,000 Receivables Capital Corporation 11/01/00 6.65 9,945,500 P1 A1+
60,000,000 Sand Dollar Funding L.L.C. 10/13/00 6.66 59,879,917 P1 A1+
15,000,000 Sand Dollar Funding L.L.C. 12/14/00 6.65 14,801,988 P1 A1+
-------------- -------------
597,386,000 Total Commercial Paper 590,331,353
-------------- -------------
<CAPTION>
Letter of Credit Commercial Paper (22.82%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 15,000,000 AES Shady Point Inc.
LOC Bank of America 11/07/00 6.60% $ 14,902,500 P1 A1+
20,000,000 Banco Bradesco S.A.
LOC Westdeutche Landesbank 10/02/00 6.53 20,000,000 P1 A1+
35,000,000 Banco Bradesco S.A.
LOC Barclays Bank PLC 11/20/00 6.58 34,689,871 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>
$ 5,567,000 Banco Continental de Panama S.A.
LOC HSBC Bank US 12/27/00 6.78% $ 5,479,626 P1 A1+
8,005,000 Banco Continental de Panama S.A.
LOC HSBC Bank US 02/23/01 6.71 7,796,550 P1 A1+
50,000,000 Banco Rio de La Plata, S.A.
LOC HSBC Bank US 11/30/00 6.61 49,467,361 P1 A1
30,000,000 Banco Santander Brasilieros
LOC Standard Chartered Bank 11/08/00 6.62 29,798,967 P1 A1
11,827,000 Banco Santander Brasilieros
LOC Standard Chartered Bank 11/13/00 6.62 11,737,036 P1 A1
40,000,000 China Merchants Bank
LOC ABN AMRO Bank 11/10/00 6.58 39,718,333 P1 A1+
20,000,000 CSN Overseas
LOC Banco Santander 10/23/00 6.58 19,923,933 P1 A1+
20,000,000 CSN Overseas
LOC Barclays Bank PLC 12/15/00 6.66 19,731,545 P1 A1+
18,000,000 Dean Health System Inc.
LOC Rabobank Nederland 11/13/00 6.61 17,862,660 P1 A1+
25,000,000 Electric Reliability Council - Series A
LOC Landesbank Hessen 11/21/00 6.61 25,000,000 P1 A1+
20,800,000 HSBC Bank Argentina, S.A.
LOC HSBC Bank US 12/18/00 6.62 20,510,822 P1 A1+
15,000,000 Louis Dreyfus Corporation
LOC Dresdner Bank, A.G. 10/10/00 6.54 14,978,333 P1 A1+
15,000,000 Louis Dreyfus Corporation
LOC Bank of Montreal 10/23/00 6.56 14,942,950 P1 A1+
32,000,000 Louis Dreyfus Corporation
LOC Bank of Montreal 10/25/00 6.57 31,866,498 P1 A1+
30,000,000 Pemex Capital Inc.
LOC Barclays Bank PLC 12/27/00 6.73 29,531,300 P1 A1+
10,000,000 Unibanco-Uniao de Bancos Brasilieros
LOC Westdeutche Landesbank 07/13/01 7.13 9,474,600 P1 A1+
-------------- -------------
421,199,000 Total Letter of Credit Commercial Paper 417,412,885
-------------- -------------
<CAPTION>
Master Notes (6.83%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 45,000,000 GMAC Mortgage Corporation (a) 10/02/00 6.58% $ 45,000,000
30,000,000 The Goldman Sachs Group L.P. 11/15/00 6.87 30,000,000 P1 A1+
50,000,000 Willamette Industries, Inc. (c) 06/15/01 6.67 50,000,000 A1
-------------- -------------
125,000,000 Total Master Notes 125,000,000
-------------- -------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Medium Term Notes (3.01%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 Goldman Sachs Group Inc. 11/07/00 6.70% $ 10,000,000 P1 A1+
20,000,000 Lexington Parker (l) 01/25/01 6.63 20,000,000 A1
5,000,000 RACERS 6-MM - Series 2000 (m) 04/26/01 6.55 4,996,544
20,000,000 Syndicated Loan Funding Trust (b) 06/15/01 6.76 20,000,000 Aa2
-------------- -------------
55,000,000 Total Medium Term Notes 54,996,544
-------------- -------------
<CAPTION>
Other Notes (30.73%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,470,000 2150 Investment Company - Series 1997 (d)
LOC Fifth Third Bank 02/01/17 6.70% $ 2,470,000
6,800,000 Adelanto California, Public Utility (d)
LOC California State Teachers Retirement System 11/01/34 6.65 6,800,000 A1+
4,075,000 Adel, GA IDA (Specialty Stampings, L.L.C.) (d)
LOC National Bank of Canada 06/01/14 6.70 4,075,000 VMIG-1
3,850,000 Alabama State IDA (Central Casting Corporation) (d)
LOC First Union National Bank of North Carolina 11/01/15 6.68 3,850,000
6,100,000 Albany Dougherty, GA Payroll IDA
(Flint River Service, Inc. Project-B) (d)
LOC Columbus Bank & Trust Company 05/01/17 6.78 6,100,000 A1
945,000 Alpine Capital Investment LLC (d)
LOC First of America 09/15/27 6.75 945,000
1,500,000 Andrews Laser Works Corporation (d)
LOC Firstar Bank, N.A. 05/01/08 6.75 1,500,000
20,000,000 Bank of America Bank Notes (e) 02/26/01 6.63 20,000,000 P1 A1
1,615,000 Berkeley Square Retirement Center - Series 1998 (d)
LOC Fifth Third Bank 02/01/13 6.75 1,615,000
2,000,000 Budd Office Building Associate
(Patnership Project) - Series 1997 (d)
LOC Comerica Bank 10/01/47 6.75 2,000,000
10,000,000 CEGW, Incorporated (d)
LOC PNC Bank, N.A. 03/31/09 6.75 10,000,000
2,250,000 Central Michigan Inns, L.L.C. (d)
LOC Michigan National Bank 04/01/30 6.65 2,250,000
23,730,000 CFM International, Inc. Guaranteed Notes - Series 1999A (j)
LOC General Electric Company 01/01/10 6.67 23,730,000
5,300,000 Cheney Brothers Incorporated (d)
LOC First Union National Bank of North Carolina 12/01/16 6.68 5,300,000
3,400,000 Cinnamon Properties, Incorporated (d)
LOC Firstar Bank, N.A. 04/01/20 6.70 3,400,000
</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>
$ 15,750,000 City & County of San Franscisco
Redevelopment Agency Taxable MHRB (d)
LOC Bayerische HypoVereins, A.G. 07/01/34 6.60% $ 15,750,000 VMIG-1
7,500,000 Columbus, GA Development Authority RB
(Four J.S. Family, LLLP Project) (d)
LOC Columbus Bank & Trust Company 09/01/20 6.66 7,500,000
8,555,000 Concrete Company - Series 1998 (d)
LOC Columbus Bank & Trust Company 07/01/48 6.70 8,555,000 A1
1,800,000 Consolidated Equities, L.L.C. - Series 1995 (d)
LOC Old Kent Bank & Trust Company 12/01/25 6.75 1,800,000
4,370,000 Cunat Capital Corporation
(Cunat Brothers, Incorporated/Irish Parie L.P.) - Series 1997B (d)
LOC LaSalle National Bank 06/01/27 6.75 4,370,000
1,545,000 Delta Capital L.L.C. - Series A (d)
LOC First Michigan Bank 01/01/26 6.75 1,545,000
2,690,000 Devin F. & Janis L. McCarthy - Series 1997 (d)
LOC Firstar Bank, N.A. 07/01/17 6.70 2,690,000
16,000,000 D.G.Y. Real Estate LP - Series 2000A (d)
LOC PNC Bank, N.A. 05/01/20 6.75 16,000,000
4,910,000 Douglas County, GA Development Authority
(Abrams Riverside, LLC Project) (d)
LOC Bank of America 11/01/18 6.70 4,910,000
7,500,000 Drury Inns, Inc (d)
LOC First Commercial Bank 04/01/20 6.73 7,500,000
6,370,000 Eagle Landing IV, Limited (d)
LOC Regions Bank 09/01/26 6.60 6,370,000 P1
6,150,000 Eckert Seamans Cherin & Mellot (d)
LOC PNC Bank, N.A. 01/01/15 6.70 6,150,000
5,228,000 Erie Funding I - Series 1989 (d)
LOC FirstMerit Bank 11/01/26 6.73 5,228,000
2,700,000 Garden City Hospital Osteopath - Series 1997 (d)
LOC National City Bank 10/01/17 6.67 2,700,000 A1
2,209,871 General Electric Engine Receivables 1996-1 Trust VR
Guaranteed Notes (f) 02/14/01 6.61 2,209,871 P1 A1+
35,000,000 The Goldman Sachs Group, L.P. (g) 10/15/01 6.85 35,000,000 P1 A1+
1,870,000 Goshen Project - Series 1997 (d)
LOC FirstMerit Bank 11/01/17 6.78 1,870,000
2,000,000 HCH, L.L.C. - Series 2000 (d)
LOC Key Bank 08/01/15 6.75 2,000,000
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Notes (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,500,000 Hope Realty, Limited Harmony Realty (Kurtz Bros., Inc.) (d)
LOC Key Bank 08/01/15 6.70% $ 1,500,000
2,125,000 Hopkins Waterhouse LLC Project (d)
LOC National City Bank 06/01/20 6.70 2,125,000
10,285,000 Institutional Distributors, Incorporated - Series 1997 (d)
LOC Firstar Bank, N.A. 06/01/17 6.70 10,285,000
2,080,000 JDV L.L.C. (d)
LOC Michigan National Bank 07/01/27 6.75 2,080,000
2,565,000 Jake Sweeney Automotive, Incorporated (d)
LOC Firstar Bank, N.A. 04/01/10 6.70 2,565,000
25,000,000 John Hancock Mutual Life Insurance Company (k) 08/19/05 6.75 25,000,000 P1 A1+
1,025,000 KBL Capital Fund, Incorporated
(BH Reality Limited Partnership) (d)
LOC Old Kent Bank & Trust Company 05/01/21 6.72 1,025,000 A1
4,280,000 KBL Capital Fund, Incorporated - Series 1995A (d)
LOC Old Kent Bank & Trust Company 07/01/05 6.72 4,280,000 A1
2,000,000 Kit Carson County, CO Agricultural Development RB
(Midwest Farms, L.L.C.) - Series 1997 (d)
LOC Norwest Bank Minneapolis 06/01/27 6.70 2,000,000 A1
5,135,000 Kool Capital, L.L.C. (d)
LOC Michigan National Bank 04/01/29 6.75 5,135,000
5,275,000 Kwik Park Corporation - Series 1999A (d)
LOC PNC Bank, N.A. 09/01/19 6.75 5,275,000
12,420,000 Laminations, Incorporated & Santana (d)
LOC PNC Bank, N.A. 08/31/15 6.75 12,420,000
4,200,000 Laurel County, KY Industrial Building RB
(Consolidated Biscuit Company Project) (d)
LOC Fifth Third Bank 03/01/15 6.65 4,200,000
500,000 LRC - B Wadsworth Investors, Limited (d)
LOC Firstar Bank, N.A. 09/01/17 6.90 500,000
3,555,000 Macroe Properties, Incorporated (d)
LOC First Michigan Bank 09/01/27 6.75 3,555,000
9,230,000 Madison, WI RB Community Development Authority
(Block 89 Project) - Series 1996A (d) 01/01/19 6.70 9,230,000
6,800,000 Madison, WI Community Development Authority RB
(Block 89 Project) - Series 2000 (d) 07/01/20 6.70 6,800,000 VMIG-1
4,100,000 Maryland HEFA RB (North Arundale Hospital) (d)
LOC Mellon Bank, N.A. 07/01/27 6.70 4,100,000
</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>
$ 3,855,000 Maximum Principle Amount Limited Partnership
(Riverview Medical Office Building) (d)
LOC National City Bank 11/01/17 6.70% $ 3,855,000
2,050,000 Maximum Principle Amount
(Buckeye Corrugated, Inc. Project) (d)
LOC National City Bank 01/01/05 6.70 2,050,000
1,485,000 Maximum Principle Amount (Goson Project) (d)
LOC FirstMerit Bank 08/01/23 6.78 1,485,000
5,200,000 Maximum Principle Amount
(Hanover Project) - Series 1997 (d)
LOC National City Bank 12/01/07 6.70 5,200,000 A1
3,300,000 McCreary County, KY (Le Sportsac, Inc. Pro-Phase) (d)
LOC Fifth Third Bank 04/01/15 6.64 3,300,000
2,030,000 Miami River Stone Company (d)
LOC Firstar Bank, N.A. 08/01/09 6.72 2,030,000
1,000,000 Miami Valley Steel Service, Inc. - Series 1996 (d)
LOC National City Bank 02/01/16 6.70 1,000,000
2,670,000 Michigan HEFA (Hope College) - Series 1996M (d)
LOC Old Kent Bank & Trust Company 10/01/16 6.75 2,670,000
990,000 Milwaukee, WI (Historic Third Ward Parking Project) (d)
LOC Northern Trust 09/01/29 6.75 990,000
5,235,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Incorporated) - Series 1995 (d)
LOC National Bank of Detroit 06/01/10 6.70 5,235,000 P1
8,475,000 Mobile, AL RB Medical Clinic Board
(Springhill Medical Complex) - Series 1996B (d)
LOC Amsouth Bank, N.A. 09/01/11 6.65 8,475,000 P1
1,680,000 Montgomery, AL Industrial Development Board (d)
LOC Columbus Bank & Trust Company 07/01/16 6.60 1,680,000
1,500,000 Mount Carmel West Medical Office Building Limited Partnership (d)
LOC National City Bank 08/01/19 6.70 1,500,000
3,580,000 NPI Capital, L.L.C. (d)
LOC Michigan National Bank 07/01/29 6.75 3,580,000
3,895,000 New Federal Cold Storage, Incorporated Project - Series 1999C (d)
LOC National City Bank 08/01/11 6.70 3,895,000
3,200,000 New York State HFA RB (345 East 94th Street) (d)
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/31 6.60 3,200,000 VMIG-1
13,350,000 Nugent Sand Co - Series 1999 (d)
LOC National City Bank 11/01/11 6.70 13,350,000
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Notes (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,600,000 Oakland Ortho Realty Association (d)
LOC PNC Bank, N.A. 09/01/09 6.70% $ 2,600,000
8,080,000 One Boyertown Properties LP (d)
Collateralized by Federal Home Loan Bank 11/01/29 6.68 8,080,000 A1+
3,800,000 Oxnard Financing Authority Refunding Lease RB - Series 1993 (d)
LOC Union Bank of California 06/01/06 6.70 3,800,000 A1
3,150,000 Pomeroy Investments, L.L.C. - Series 1997 (d)
LOC Firstar Bank, N.A. 04/01/17 6.70 3,150,000
2,800,000 Prince William County, VA - Series A (d)
LOC Wachovia Bank & Trust Company, N.A. 03/01/17 6.65 2,800,000 VMIG-1
2,010,000 RK Capital L.L.C. (d)
LOC Michigan National Bank 12/01/28 6.75 2,010,000
3,170,000 Savoy Properties, Limited (d)
LOC Key Bank 08/01/20 6.75 3,170,000
5,360,000 Security Self-Storage, Inc. (d)
LOC Bank One 01/01/19 6.61 5,360,000
4,320,000 Shepperd Capital L.L.C. (d)
LOC First of America 09/15/47 6.75 4,320,000
4,320,000 Shepperd Capital L.L.C. (d)
LOC Old Kent Bank & Trust Company 03/15/49 6.75 4,320,000
15,000,000 SMM Trust 2000-A (h) 03/14/01 6.64 15,000,000 P1 A1+
2,140,000 Smugglers Notch Management Company/Investment Company (d)
LOC Key Bank 09/01/15 6.65 2,140,000
8,000,000 Southeast Alabama Gas District RB (Lateral Project) (d)
Insured by AMBAC Indemnity Corp. 06/01/25 6.65 8,000,000 A1
15,600,000 Southwestern Ohio Steel, Incorporated (d)
LOC Firstar Bank, N.A. 04/01/08 6.70 15,600,000
1,755,000 Stallard-Schrier Corporation (d)
LOC Fifth Third Bank 09/01/16 6.75 1,755,000
19,000,000 State of Missouri HEFA
(SSM Health Care System) 1995 - Series D (d)
Insured by MBIA Insurance Corp. 06/01/24 6.60 19,000,000 A1+
4,740,000 Stevenson Photo Color Company (d)
LOC Firstar Bank, N.A. 08/01/19 6.70 4,740,000
12,155,000 Stone Creek, L.L.C. - Series 1995 (d)
LOC Columbus Bank & Trust Company 08/01/22 6.70 12,155,000 P1
2,975,000 Team Capital, L.L.C. (d)
LOC Old Kent Bank & Trust Company 03/01/29 6.75 2,975,000
</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>
$ 7,670,000 Three Reading LP (d)
Guaranteed by Federal Home Loan Bank 06/01/24 6.68% $ 7,670,000 A1+
1,745,000 Town of Greendale, IN EDA RB - Series 1993B (d)
LOC National City Bank 12/01/05 6.70 1,745,000
1,465,000 Tripplet Corporation (d)
LOC Fifth Third Bank 03/01/08 6.75 1,465,000
2,280,000 Vista Funding Corporation - Series 1997A (d)
LOC Fifth Third Bank 07/01/15 6.70 2,280,000
1,435,000 Walt Sweeney Ford - Series 1996 (d)
LOC Fifth Third Bank 01/01/12 6.75 1,435,000
2,510,000 Washington State Housing Finance Commission
(Marketplace Apartments) (d)
LOC Bank One 07/01/29 6.75 2,510,000 VMIG-1
1,975,000 Weller Irrevocable Trust #2 - Series 1998 (d)
LOC First Union National Bank of North Carolina 09/01/13 6.70 1,975,000 A1
3,055,000 Westchester County, NY IDA RB (B.W.P. Distributors Inc.) (d)
LOC First Union National Bank of North Carolina 10/01/28 6.68 3,055,000
810,000 Westchester Presbyterian Church (d)
LOC Firstar Bank, N.A. 09/01/13 6.90 810,000
2,045,000 West Point, Inc. Project - Series 2000 (d)
LOC FirstMerit Bank 03/01/21 6.78 2,045,000
1,880,000 William Thies & Son, Incorporated (d)
LOC First Union National Bank of North Carolina 03/01/07 6.68 1,880,000
2,000,000 Wilmington Iron & Metal Company (d)
LOC Bank One 08/01/14 6.70 2,000,000
7,891,979 Wilmington Trust Company (d) 01/01/11 6.61 7,891,979 P1 A1+
12,500,000 Winder-Barrow Industrial Building(d)
LOC Columbus Bank & Trust Company 02/01/20 6.70 12,500,000 A1
-------------- ------------
561,989,850 Total Other Notes 561,989,850
-------------- -------------
<CAPTION>
Repurchase Agreement, Overnight (0.98%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 18,000,000 The Goldman Sachs Group L.P. (Collateralized by $18,797,479,
GNMA, 6.000% to 6.500%, due 11/20/29 to 03/20/30,
proceeds $18,360,000) 10/02/00 6.60% $ 18,000,000
-------------- ------------
18,000,000 Total Repurchase Agreement, Overnight 18,000,000
-------------- ------------
<CAPTION>
Time Deposits (1.91%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 35,000,000 Dresdner Bank, A.G. 10/02/00 6.72% $ 35,000,000 P1 A1+
-------------- ------------
35,000,000 Total Time Deposits 35,000,000
-------------- ------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Yankee Certificates of Deposit (1.09%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 20,000,000 National Westminster Bank PLC 05/09/01 7.26% $ 19,996,600 P1 A1+
-------------- --------------
20,000,000 Total Yankee Certificates of Deposit 19,996,600
-------------- --------------
Total Investments (99.65%) (Cost $1,822,727,232+) 1,822,727,232
Cash and Other Assets, Net of Liabilities (0.35%) 6,350,971
--------------
Net Assets (100.00%) $1,829,078,203
==============
</TABLE>
+ Aggregate cost for income tax purposes is identical.
FOOTNOTES:
(a) The interest rate is adjusted monthly based upon one month LIBOR.
(b) The interest rate is adjusted monthly based upon one month LIBOR plus .12
basis points.
(c) The interest rate is adjusted monthly based upon one month LIBOR rate plus
5 basis points; 7 day put option.
(d) These securities have a 7 day put feature exercisable by the Fund at par
value. Rate changes weekly.
(e) The interest rate is adjusted daily based upon prime minus 2.87%.
(f) The interest rate is adjusted weekly based upon one month LIBOR minus 1
basis point; weekly put option.
(g) The interest rate is adjusted quarterly based upon LIBOR plus 12 basis
points.
(h) The interest rate is adjusted quarterly based upon three month LIBOR plus
12 basis points.
(i) Theses securities are split rated. Having top tier rating from at least two
national securities rating agencies.
(j) The interest rate adjusts weekly average of prior week one month LIBOR,
weekly put at par value.
(k) The interest rate is adjusted quarterly based upon three month LIBOR plus
.06 basis points.
(l) The interest rate is adjusted monthly based upon one month LIBOR plus 1
basis point.
(m) The interest rate is adjusted quarterly based upon 3 month LIBOR plus 17
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
HFA = Housing Finance Authority MFHRB = Multi-Family Housing Revenue Bond
HEFA = Health & Education Facilities Authority RB = Revenue Bond
IDA = Industrial Development Authority VR = Variable Rate
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 2)
------ ---- ----- ------
Agency Discount Notes (36.53%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,775,000 Federal Home Loan Bank 01/17/01 6.61% $ 2,722,131
3,000,000 Federal Home Loan Bank 01/19/01 6.58 2,941,958
2,475,000 Federal Home Loan Mortgage Corporation 10/05/00 6.51 2,473,678
3,000,000 Federal Home Loan Mortgage Corporation 10/12/00 6.34 2,994,883
3,000,000 Federal Home Loan Mortgage Corporation 11/30/00 6.51 2,968,509
6,000,000 Federal National Mortgage Association 10/05/00 6.43 5,996,860
3,000,000 Federal National Mortgage Association 10/19/00 6.39 2,991,238
2,000,000 Federal National Mortgage Association 11/09/00 6.56 1,986,404
3,000,000 Federal National Mortgage Association 11/22/00 6.51 2,972,800
6,000,000 Federal National Mortgage Association 01/26/01 6.54 5,876,267
2,000,000 Federal National Mortgage Association 02/01/01 6.60 1,956,690
7,248,000 Federal National Mortgage Association 02/15/01 6.62 7,072,514
----------- -----------
43,498,000 Total Agency Discount Notes 42,953,932
----------- -----------
<CAPTION>
Floating Rate Securities (12.75%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Federal Home Loan Bank Floater (a) 10/04/00 6.68% $ 4,999,981
2,000,000 Federal Home Loan Bank Floater (b) 10/10/00 6.63 2,000,000
5,000,000 Federal Home Loan Bank Floater (c) 11/08/00 6.52 5,000,000
3,000,000 Federal Home Loan Bank Floater (d) 09/19/01 6.50 2,999,155
----------- -----------
15,000,000 Total Floating Rate Securities 14,999,136
----------- -----------
<CAPTION>
Government Agency Medium Term Notes (11.05%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 Federal Farm Credit Bank 10/10/00 6.68% $ 999,765
1,011,000 Federal Farm Credit Bank 02/01/01 6.55 1,010,728
2,000,000 Federal Home Loan Bank 10/06/00 6.02 2,000,000
1,000,000 Federal Home Loan Bank 05/22/01 6.35 1,003,197
3,000,000 Federal Home Loan Mortgage Corporation 02/15/01 6.56 2,981,483
2,000,000 Federal National Mortgage Association 12/07/00 6.21 1,998,366
3,000,000 Federal National Mortgage Association 04/26/01 6.46 2,999,207
----------- -----------
13,011,000 Total Government Agency Medium Term Notes 12,992,746
----------- -----------
<CAPTION>
Repurchase Agreements, Overnight (38.26%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$25,000,000 Morgan (JP) Securities, Inc. (Collateralized by $ 25,828,000, FNMA, 0.000%,
due 12/21/00; FHLB, 0.000%, due 10/25/00, proceeds $25,500,084) 10/02/00 6.65% $25,000,000
20,000,000 Salomon Smith Barney (Collateralized by $27,438,854, GNMA,
6.250% to 6.500%, due 03/20/22 to 03/15/29, proceeds $20,400,000) 10/02/00 6.58 20,000,000
----------- -----------
45,000,000 Total Repurchase Agreements, Overnight 45,000,000
----------- -----------
Total Investments (98.59%) ($115,945,814+) 115,945,814
Cash and Other Assets, Net of Liabilities (1.41%) 1,656,916
------------
Net Assets (100.00%) $117,602,730
============
</TABLE>
+ Aggregate cost for federal income tax purposes is identical
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
FOOTNOTES:
(a) 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.
(b) This is a variable Federal Home Loan Bank Floating Rate Note. The interest
rate changes daily pegged to Prime minus 2.87 basis points.
(c) This is a variable Federal Home Loan Bank Floating Rate Note. The interest
rate changes weekly based on 3 month TBILL BEY plus 34.5 basis points.
(d) This is a variable Federal Home Loan Bank Floating Rate Note. The interest
rate changes daily pegged to Prime minus 3.03 basis points.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C>
FNMA = Federal National Mortgage Association
FHLB = Federal Home Loan Bank
GNMA = Government National Mortgage Association
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Tax Exempt Investments (12.43%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,065,000 City of Kelso, WA GAN - Series 2000 02/25/01 4.50% $ 5,065,000
3,430,000 Foley, MN GO Independent School District #51 09/29/01 4.33 3,434,841
650,000 Pecatonia, WI Area School District 11/01/00 3.98 650,046
2,250,000 Whitnall School District 10/27/00 3.89 2,250,457
3,000,000 Wisconsin School Cash Flow 11/01/00 4.30 3,000,000
----------- ------------
14,395,000 Total Other Tax Exempt Investments 14,400,344
----------- ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (42.14%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Alamance County, NC Industrial Facilities & PCFA
(Science Manufacturing Inc. Project)
LOC PNC Bank, N.A. 04/01/15 5.65% $ 2,000,000 VMIG-1
5,455,000 Auburn, AL Non-Profit HDA (Lakeside Project)
LOC Columbus Bank & Trust Company 09/01/27 5.80 5,455,000 A1
1,100,000 Butler County, PA IDA (Armco Inc. Project) - Series 1996A
LOC Chase Manhattan Bank, N.A. 06/01/20 5.60 1,100,000
5,000,000 Commonwealth of Puerto Rico
Insured by MBIA Insurance Corp. 07/01/15 4.57 5,000,000 A1+
3,500,000 Deridder, LA IDRB (Pax Inc. Project)
LOC Bank One 08/01/12 5.80 3,500,000 A1+
1,075,000 Fulton County, GA Development Authority RB
(Darby Printing Company)
LOC Wachovia Bank & Trust Co., N.A. 04/01/11 6.00 1,075,000
3,000,000 Gaston County, NC Industrial Facilities & PCFA RB
(Duke Energy Corp.) 10/01/12 5.75 3,000,000 P1 A1
7,145,000 Halifax County, NC Industrial Facilites & PCFA
(Roanoke Light, Gas & Electric)
LOC Credit Suisse First Boston 06/01/21 5.65 7,145,000 A1+
2,000,000 Jackson County, MS PCRB (Chevron USA Inc. Project) 06/01/23 5.50 2,000,000 P1
2,000,000 Jefferson Parish, LA IDRB (Sara Lee Corp. Project) 06/01/24 5.75 2,000,000 A1+
3,012,333 Koch Floating Rate Trust Variable - Series 1
Insured by AMBAC Indemnity Corp. 05/03/04 5.36 3,012,333
1,000,000 Pitkin County, CO IDRB (Aspen Skiing Co. Project)
LOC Bank One 04/01/14 5.75 1,000,000 A1+
3,200,000 Sarpy County, NE Hospital Authority Health Facilities RB
(Immanuel Health Systems) - Series B
LOC LaSalle National Bank 07/01/30 5.60 3,200,000 A1+
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (b) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Stevenson, AL IDB (Mead Corp. Project) - Series A
LOC Bank of Austria 02/01/34 5.90% $ 5,000,000 A1+
2,000,000 Washington State Housing Finance Commission
(YMCA Snohomish County Project)
LOC US Bank, N.A. 06/01/27 5.75 2,000,000 A1
1,100,000 Will County, IL Environmental RB (Exxon - Mobil Corp. Project) 04/01/33 5.65 1,100,000 P1 A1+
1,250,000 York County, PA IDA Limited Obligation RB
(Metal Exchange Corp. Project) - Series 1996
LOC Comerica Bank 06/01/06 5.85 1,250,000
----------- ------------
48,837,333 Total Other Variable Rate Demand Instruments 48,837,333
----------- ------------
<CAPTION>
Put Bonds (c) (17.42%)
------------------------------------------------------------------------------------------------------------------------------------
<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+
1,535,000 Dayton, KY Industrial Building RB
(Radac Corp. Project)- Series 1994C
LOC Fifth Third Bank 10/02/00 4.65 1,535,000
6,500,000 Hartford County, MD (A.O. Smith)
LOC Bank One 03/01/01 4.50 6,500,000
2,500,000 Michigan Strategic Fund (Donnelly Corp. Project) - Series 1988
LOC Dresdner Bank A.G. 10/01/00 4.50 2,500,000 P1 A1+
2,635,000 Mississippi Home Corporation Single
Family Program Merlots - Series A-2
Guaranteed by Government National Mortgage Association 09/01/01 4.45 2,635,000 VMIG-1
1,055,000 Nevada Housing Division Tender Option Bonds
(Single Family Program C-2)
Guaranteed by FHA/VA/Private Mortgages 10/01/01 4.60 1,055,000
2,960,000 Vermont State Educational & Health
Building Finance Agency (Middlebury College) 11/01/00 3.85 2,960,000 A1+
----------- ------------
20,185,000 Total Put Bonds 20,185,000
----------- ------------
<CAPTION>
Revenue Bond (1.29%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 State of Oregon Housing & Community Service
(Single Family Mortgage Program)
Collateralized by U.S. Government Agencies 11/02/00 3.95% $ 1,000,000 MIG-1
500,000 University of North Carolina (System Pooled RB) - Series B
Insured by MBIA Insurance Corp. 10/01/00 4.25 500,000
----------- ------------
1,500,000 Total Revenue Bond 1,500,000
----------- ------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 2) Moody's & Poor's
------ ---- ----- ------ ------- --------
Tax Exempt Commercial Paper (18.74%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,700,000 Anne Arundel EDRB (Baltimore Gas & Electric Company Project)
LOC Chase Manhattan Bank, N.A./The Bank of New York 10/11/00 4.20% $ 5,700,000 VMIG-1 A1
5,020,000 Broward County, FL
Sales Tax Revenue Commercial Paper - Series A 10/11/00 4.20 5,020,000 VMIG-1 A1+
2,000,000 City & County of Denver, CO
Airport System Subordinate RB - Series 1997A
LOC Bayerische Landesbank Girozentrale 11/09/00 4.20 2,000,000 P1 A1+
5,000,000 Lee County, FL Hospital Board HRB
(Lee Memorial Hospital Project) 10/03/00 4.25 5,000,000 VMIG-1 A1+
4,000,000 New Hampshire State Business Finance Authority PCRB
(New England Power Co. Project) 01/30/01 4.40 4,000,000 P1 A1
----------- ------------
21,720,000 Total Tax Exempt Commercial Paper 21,720,000
----------- ------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (1.73%)
------------------------------------------------------------------------------------------------------------------------------------
<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 6.17% $ 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 6.17 1,000,000 P1 A1
----------- ------------
2,000,000 Total Variable Rate Demand Instruments - Participations 2,000,000
----------- ------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (5.98%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Bastrop County, TX Industrial Development Corp. IDRB
(Blocrest Partners, LP Project)
LOC Union Bank of California 04/01/22 6.20% $ 5,000,000
1,936,000 York County, PA IDA IDRB (Manor Care of Kingston Court Inc.)
LOC Chase Manhattan Bank, N.A. 12/01/08 6.17 1,936,000 P1 A1
----------- ------------
6,936,000 Total Variable Rate Demand Instruments - Private Placements 6,936,000
----------- ------------
Total Investments (99.73%) (Cost $115,578,677+) 115,578,677
Cash and Other Assets, Net of Liabilities (0.27%) 315,747
------------
Net Assets (100.00%) $115,894,424
============
</TABLE>
+ Aggregate cost for federal income tax purposes is identical.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings noted (unaudited) are the highest ratings assigned for tax
exempt commercial paper. Securities that are not rated have been determined
by the Fund's Board of Directors to be of comparable quality to those rated
securities in which the Fund invests.
(b) Securities payable on demand at par including accrued interest (primarily
with seven days notice) and where indicated are unconditionally secured as
to principal and interest by a bank letter of credit. The interest rates
are adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
(c) Maturity dates of these securities are the next available put dates.
Interest rates adjust periodically.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
EDA = Economic Development Authority IDB = Industrial Development Authority
EDRB = Economic Development Revenue Bond IDRB = Industrial Development Revenue Bond
GAN = Grant Anticipation Notes LOC = Letter of Credit
GO = General Obligation PCFA = Pollution Control Finance Authority
HDA = Housing Development Authority PCRB = Pollution Control Revenue Bond
HRB = Hospital Revenue Bond RB = Revenue Bond
IDA = Industrial Development Authority
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments in securities*............. $ 1,822,727,232 $ 115,945,814 $ 115,578,677
Cash................................... 1,616,159 1,119,924 356,403
Interest receivable.................... 5,822,121 601,370 1,068,019
----------------- --------------- ---------------
Total Assets...................... 1,830,165,512 117,667,108 117,003,099
LIABILITIES:
Dividends payable...................... 858,184 53,932 37,122
Payable for securities purchased....... -- -- 1,055,135
Other accounts payable................. 229,125 10,446 16,418
----------------- --------------- ---------------
Total Liabilities................. 1,087,309 64,378 1,108,675
----------------- --------------- ---------------
NET ASSETS.............................. $ 1,829,078,203 $ 117,602,730 $ 115,894,424
================= =============== ===============
SHARES OUTSTANDING:
Cortland Shares........................ 845,252,280 57,489,669 54,527,946
Live Oak Shares........................ 985,020,310 60,122,949 61,388,753
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 $18,000,000 and $45,000,000
for the Cortland General Money Market Fund and U.S. Government Fund,
respectively.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest Income.......................... $ 59,143,928 $ 5,293,693 $ 5,396,284
----------------- --------------- ---------------
Expenses:
Management fee--Note 3(a)............. 6,890,960 639,614 958,484
Distribution support and services
----Note 3(c):
Cortland shares.................. 1,015,948 77,252 67,705
Live Oak shares.................. 1,003,379 65,818 56,286
Bradford shares.................. -- 51,250 177,879
Other expenses........................ 102,243 18,034 27,051
----------------- --------------- ---------------
Total Expenses................... 9,012,530 851,968 1,287,405
Expenses waived by
Manager--Note 3(c)................... ( 81,276) ( 81,543) ( 136,198)
----------------- --------------- ---------------
Net Expenses..................... 8,931,254 770,425 1,151,207
----------------- --------------- ---------------
Net Investment Income.................... 50,212,674 4,523,268 4,245,077
NET REALIZED GAIN
ON INVESTMENTS
Net realized gain/(loss) on investments.. 52,091 949 ( 500)
----------------- --------------- ---------------
Increase in net assets from operations... $ 50,264,765 $ 4,524,217 $ 4,244,577
================= =============== ===============
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
------------------------------ --------------------------- ---------------------------
For the Six For the For the Six For the For the Six For the
Months Ended Year Months Ended Year Months Ended Year
September 30, Ended September 30, Ended September 30, Ended
2000 March 31, 2000 March 31, 2000 March 31,
(Unaudited) 2000 (Unaudited) 2000 (Unaudited) 2000
----------- -------------- ----------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income... $ 50,212,674 $ 75,368,968 $ 4,523,268 $ 8,587,301 $ 4,245,077 $ 7,621,626
Net realized gain on
investments........... 52,091 200,388 949 10,690 ( 500) ( 307)
-------------- -------------- ------------- ------------- ------------ ------------
Increase in net assets
from operations....... 50,264,765 75,569,356 4,524,217 8,597,991 4,244,577 7,621,319
Distributions
to shareholders from:
Net investment income:
Cortland shares....... ( 22,420,561) ( 35,013,844) ( 1,638,649) ( 2,702,014) ( 891,928)+ ( 1,411,334)+
Live Oak shares....... ( 27,815,604) ( 40,075,444) ( 1,784,752) ( 3,098,670) ( 934,768)+ ( 1,552,196)+
Bradford shares....... -- -- ( 1,101,146) ( 2,548,780) ( 2,418,381)+ ( 4,688,096)+
Capital share
transactions net (Note 4):
Cortland shares....... 10,431,073 174,168,088 ( 634,606) ( 6,394,572) ( 268,755) 5,559,708
Live Oak shares....... 1,615,129 169,649,225 ( 9,961,317) ( 9,001,893) 7,252,195 ( 15,992,057)
Bradford shares....... -- -- ( 56,647,774) ( 5,528,757) (158,455,583) ( 24,386,807)
-------------- -------------- ------------- ------------- ------------ ------------
Total increase (decrease) 12,074,802 344,297,381 ( 67,244,027) ( 20,676,695) (151,472,643 ) ( 34,819,463)
Net assets:
Beginning of period..... 1,817,003,401 1,472,706,020 184,846,757 205,523,452 267,367,067 302,186,530
-------------- -------------- ------------- ------------- ------------ ------------
End of period........... $1,829,078,203 $1,817,003,401 $ 117,602,730 $ 184,846,757 $115,894,424 $267,367,067
============== ============== ============= ============= ============ ============
Undistributed net
investment income..... $ 401,842 $ 425,333 $ 642,696 $ 643,976 $ -0- $ -0-
</TABLE>
+ Designated as exempt-interest dividends for regular federal income tax
purposes.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
Note 1-General:
Cortland Trust, Inc. (the "Company") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as a no-load, diversified, open-end
management company. The Company consists of three money market funds: the
Cortland General Money Market Fund ("Cortland General Fund"), the U.S.
Government Fund, and the Municipal Money Market Fund ("Municipal Fund").
Cortland General Fund has two classes of stock authorized, Cortland shares and
Live Oak shares. Both the U.S. Government Fund and the Municipal Fund have three
classes of stock authorized, Cortland shares, Live Oak shares and Bradford
shares. The Cortland shares are subject to a service fee of .25% of its average
net assets pursuant to the Distribution Plan. The Live Oak shares are subject to
a service fee of .20% of its average net assets. The Bradford shares are subject
to a service fee of .25% of its average net assets. In all other respects, the
Cortland shares, Live Oak shares and Bradford shares represent the same interest
in the income and assets of the Fund. Each class of shares has identical voting,
dividend, liquidation and other rights, except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan. Distribution of Live Oak shares commenced November 16, 1995.
Bradford shares commenced distribution on October 1, 1997. The Company accounts
separately for the assets, liabilities and operations of each Fund.
It is the Company's policy to maintain a continuous net asset value per share of
$1.00 for each Fund; the Company has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so.
The shares outstanding in the Cortland General Fund include the Pilgrim Money
Market Class of Shares (the "Pilgrim Shares"). Pilgrim Shares are identical to
the Cortland shares of the Cortland General Fund with respect to investment
objectives, voting rights and yield, but differ with respect to certain other
matters relating primarily to exchange privileges. At September 30, 2000, there
were 39,970,748 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 accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that effect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results could
differ from those estimates.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 2-Significant Accounting Policies: (Continued)
(e) Federal income taxes: It is the policy of each Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders by complying with the applicable
sections of the Internal Revenue Code, and to make distributions of income
(including net realized capital gains) sufficient to relieve it from all
Federal income taxes. Accordingly, no provision for Federal income taxes is
required. At September 30, 200, 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 profit, 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 the U.S. Government Fund. $13,541, $3,530 and $11,869 will expire in
the years 2001, 2002 and 2003, respectively, for Municipal Fund.
Note 3-Management Fee and Other Transactions With Affiliates:
(a) Reich & Tang Asset Management, L.P. (the "Manager") serves as the manager of
the Company and its three Funds pursuant to agreements with the Funds dated
September 14, 1993 ("Agreements"). Under the Agreements, the Manager provides
directly, or indirectly through contracts with others, all services required for
the management of the Company. The Manager bears all ordinary operating expenses
associated with the Company's operation except: (a) the fees of the directors
who are not "interested persons" of the Company, as defined by the Act, and the
travel and related expenses of the directors incident to their attending
shareholder's, director's and committee meetings, (b) interest, taxes and
brokerage commissions, (c) extraordinary expenses, (d) shareholder service or
distribution fees which together can represent up to 0.25% with respect to the
Cortland shares and Bradford shares and up to 0.20% with respect to the Live Oak
shares of the net assets of each Fund on an annualized basis, and (e) membership
dues of any industry association. Additionally, the Manager has assumed all
expenses associated with organizing the Company and all expenses of registering
or qualifying the Company's shares under Federal and state securities laws. The
Funds pay the Manager an annual fee, calculated daily and paid monthly, of .80%
of the first $500 million of the Company's average daily net assets, plus .775%
of the next $500 million of the Company's average daily net assets, plus .75% of
the next $500 million of the Company's average daily net assets, plus .725% of
the Company's average daily net assets in excess of $1.5 billion. The management
fees are allocated pro-rata to each Fund based on their average daily net
assets.
(b) Certain officers and directors of the Company are "affiliated persons", as
defined in the Act, of the Manager. Each director who is not an "affiliated
person" receives from the Company an annual fee of $5,000 for services as a
director and a fee of $1,250 for each Board of Directors' meeting attended. All
directors fees and expenses are allocated equally to each Fund.
(c) Pursuant to a Distribution Plan ("Plan") dated July 31, 1989, each Fund can
make payments of up to 0.25% per annum of its average daily net assets with
respect to Cortland shares of the Fund for assistance in distributing its
shares. The Manager and/or its affiliates have the ability to make additional
payments for distribution assistance. The Manager and/or its affiliates bear all
other expenses related to the distribution of the company's shares.
Pursuant to a Distribution Plan approved by the Company's Board on November 9,
1995, each Fund can make payments of up to 0.20% per annum of it's average daily
net assets with respect to the Live Oak shares of the Fund for assistance in
distributing its shares.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Note 3-Management Fee and Other Transactions With Affiliates: (Continued)
Pursuant to a Distribution Plan approved by the Company's Board on March 5,
1997, each Fund can make payments of up to .25% per annum of its average net
assets with respect to the Bradford shares of the Fund for assistance in
distributing its shares. During the period ended September 30, 2000, the
Distributor waived Distribution support and services fees of $81,276 for the
Cortland shares of the Cortland General Fund.
During the period ended September 30, 2000, the Distributor waived Distribution
support and services fees of $9,270, $35,373 and $36,900 for the Cortland
shares, Live Oak shares and Bradford shares, respectively, of the U.S.
Government Fund.
During the period ended September 30, 2000, the Distributor waived Distribution
support and services fees of $8,125 and $128,073 for the Cortland shares, and
Bradford shares, respectively, of the Municipal Fund.
Note 4-Capital Share Transactions:
At September 30, 2000, 6 billion shares of $.001 par value shares of the Company
were authorized, of which 2.5 billion are designated 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
------------------------------ ---------------------------- ----------------------------
Six Months For the Year Six Months For the Year Six Months For the Year
Ended Ended Ended Ended Ended Ended
September 30, 2000 March 31, September 30, 2000 March 31, September 30, 2000 March 31,
(Unaudited) 2000 (Unaudited) 2000 (Unaudited) 2000
------------- ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Cortland Shares
Shares sold............ 1,564,188,864 3,059,760,102 76,633,053 168,267,194 99,782,582 221,284,696
Dividends reinvested... 22,136,270 35,010,239 1,620,031 2,704,118 878,341 1,410,312
------------- ------------- ------------ ------------ ------------ ------------
1,586,325,134 3,094,770,341 78,253,084 170,971,312 100,660,923 222,695,008
Shares redeemed........ (1,575,894,061) (2,920,602,253) ( 78,887,690) ( 177,365,884) ( 100,929,678) ( 217,135,300)
------------- ------------- ------------ ------------ ------------ ------------
Net increase (decrease) 10,431,073 174,168,088 ( 634,606) ( 6,394,572) ( 268,755) 5,559,708
============= ============= ============ ============ ============ ============
Live Oak Shares
Shares sold............ 2,435,464,645 4,969,169,402 121,122,592 335,103,483 118,521,008 224,660,999
Dividends reinvested... 27,495,919 39,989,550 1,767,044 3,091,980 919,683 1,519,730
------------- ------------- ------------ ------------ ------------ ------------
2,462,960,564 5,009,158,952 122,889,636 338,195,463 119,440,691 226,180,729
Shares redeemed........ (2,461,345,435) (4,839,509,727) ( 132,850,953) ( 347,197,356) ( 112,188,496) ( 242,172,786)
------------- ------------- ------------ ------------ ------------ ------------
Net increase (decrease) 1,615,129 169,649,225 ( 9,961,317) ( 9,001,893) 7,252,195 ( 15,992,057)
============= ============= ============ ============ ============ ============
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 4-Capital Share Transactions: (Continued)
<TABLE>
<CAPTION>
Municipal Money
U.S. Government Fund Market Fund
------------------------------- ------------------------------
For the Period For the Year For the Period For the Year
Ended Ended Ended Ended
August 10, 2000 March 31, August 10, 2000 March 31,
(Unaudited) 2000 (Unaudited) 2000
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Bradford Shares
Shares sold................ 69,093,982 190,418,716 396,507,251 740,328,316
Dividends reinvested....... 1,109,314 2,550,623 2,432,295 4,688,760
----------- ----------- ----------- -----------
70,203,296 192,969,339 398,939,546 745,017,076
Shares redeemed............ (126,851,070) (198,498,096) (557,395,129) (769,403,883)
----------- ----------- ----------- -----------
Net increase .............. ( 56,647,774) ( 5,528,757) (158,455,583) ( 24,386,807)
=========== =========== =========== ===========
</TABLE>
The components of net assets at September 30, 2000 are as follows:
<TABLE>
<CAPTION>
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
------------------- -------------------- ----------------------
September 30, 2000 September 30, 2000 September 30, 2000
(Unaudited) (Unaudited) (Unaudited)
--------- --------- ---------
<S> <C> <C> <C>
Paid-in capital...... $1,830,272,590 $ 117,612,618 $ 115,916,699
Accumulated net
realized losses.... ( 1,596,229) ( 652,585) ( 22,275)
Undistributed net
investment income 401,842 642,697 -0-
------------- ------------- -------------
Total net assets..... $1,829,078,203 $ 117,602,730 $ 115,894,424
============= ============= =============
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Note 5-Financial Highlights:
<TABLE>
<CAPTION>
Cortland General Money Market Fund
---------------------------------------------------------------------------------------------
Cortland Shares
---------------------------------------------------------------------------------------------
Six Months
Ended For the Year Ended March 31,
September 30, 2000 -------------------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
--------- --------- --------- --------- --------- ---------
<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........... 0.028 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... 0.028 0.045 0.046 0.046 0.044 0.050
Less distributions:
Dividends from net
investment income.............. ( 0.028) ( 0.045) ( 0.045) ( 0.047) ( 0.044) ( 0.048)
-------- -------- -------- -------- -------- --------
Total distributions................ ( 0.028) ( 0.045) ( 0.045) ( 0.047) ( 0.044) ( 0.048)
-------- -------- -------- -------- -------- --------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return....................... 2.82%** 4.60% 4.56% 4.77% 4.52% 4.95%
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 844,701 $ 834,259 $ 659,890 $ 505,442 $1,160,352 $1,159,173
Ratios to average net assets:
Expenses........................ 1.00%* 0.97% 1.00% 0.99% 1.02% 1.03%
Net investment income........... 5.51%* 4.54% 4.41% 4.67% 4.41% 4.86%
Management and Distribution support
and service fees waived........... 0.02%* 0.05% 0.03% 0.04% -- --
</TABLE>
* Annualized
** Unannualized
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Cortland General Money Market Fund
---------------------------------------------------------------------------------------------
Live Oak Shares
---------------------------------------------------------------------------------------------
Six Months
Ended For the Year Ended March 31,
September 30, 2000 -------------------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996+
--------- --------- --------- --------- --------- ---------
<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........... 0.028 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... 0.028 0.045 0.046 0.047 0.045 0.018
Less distributions:
Dividends from net
investment income.............. ( 0.028) ( 0.045) ( 0.045) ( 0.047) ( 0.045) ( 0.018)
-------- -------- -------- -------- -------- --------
Total distributions................ ( 0.028) ( 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 $ 1.00
========= ========= ========= ========= ========= =========
Total Return....................... 2.83%* 4.63% 4.59% 4.84% 4.59% 4.78%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 984,377 $ 982,744 $ 812,816 $ 609,818 $ 440,457 $ 351,030
Ratios to average net assets:
Expenses........................... 0.97%* 0.94% 0.98% 0.91% 0.95% 0.97%*
Net investment income.............. 5.54%* 4.57% 4.43% 4.78% 4.48% 4.68%*
Management and Distribution support
and service fees waived........... 0.00%* 0.03% -- 0.05% 0.02% 0.02%*
</TABLE>
* Annualized
** Unannualized
+ Live Oak shares commenced distribution on November 16, 1995.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
---------------------------------------------------------------------------------------------
Cortland Shares
---------------------------------------------------------------------------------------------
Six Months
Ended For the Year Ended March 31,
September 30, 2000 -------------------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
--------- --------- --------- --------- --------- ---------
<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........... 0.027 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... 0.027 0.043 0.043 0.045 0.042 0.047
Less distributions:
Dividends from net
investment income.............. ( 0.027) ( 0.043) ( 0.042) ( 0.045) ( 0.043) ( 0.047)
-------- -------- -------- -------- -------- --------
Total distributions................ ( 0.027) ( 0.043) ( 0.042) ( 0.045) ( 0.043) ( 0.047)
-------- -------- -------- -------- -------- --------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return....................... 2.71%** 4.35% 4.33% 4.61% 4.37% 4.80%
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 57,485 $ 58,121 $ 64,438 $ 48,069 $ 164,464 $ 255,222
Ratios to average net assets:
Expenses........................ 1.00%* 0.88% 1.00% 0.81% 1.01% 1.04%
Net investment income........... 5.30%* 4.38% 4.18% 4.58% 4.30% 4.72%
Management and Distribution support
and service fees waived........... 0.03%* 0.16% 0.04% 0.25% 0.02% --
</TABLE>
* Annualized
** Unannualized
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
---------------------------------------------------------------------------------------------
Live Oak Shares
---------------------------------------------------------------------------------------------
Six Months
Ended For the Year Ended March 31,
September 30, 2000 -------------------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996+
--------- --------- --------- --------- --------- ---------
<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........... 0.027 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... 0.027 0.043 0.044 0.048 0.043 0.017
Less distributions:
Dividends from net
investment income.............. ( 0.027) ( 0.043) ( 0.043) ( 0.046) ( 0.044) ( 0.017)
-------- -------- -------- -------- -------- --------
Total distributions................ ( 0.027) ( 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 $ 1.00
========= ========= ========= ========= ========= =========
Total Return....................... 2.78%** 4.43% 4.42% 4.75% 4.53% 4.74%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 60,118 $ 70,080 $ 78,987 $ 66,829 $ 55,057 $ 47,328
$ 47,328
Ratios to average net assets:
Expenses........................ 0.87%* 0.79% 0.91% 0.68% 0.86% 0.89%*
Net investment income........... 5.42%* 4.45% 4.29% 4.89% 4.45% 4.64%*
Management and Distribution support
and service fees waived........... 0.11%* 0.18% 0.08% 0.24% 0.12% 0.11%*
</TABLE>
* Annualized
** Unannualized
+ Live Oak shares commenced distribution on November 16, 1995.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
U.S. Government Fund
------------------------------------------------------------------------
Bradford Shares
------------------------------------------------------------------------
For the Period
Ended For the Year Ended March 31,
August 10, 2000 -------------------------------------------------
(Unaudited) 2000 1999 1998+
--------- ---------- --------- -----------
<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........... 0.019 0.044 0.044 0.026
Net realized and unrealized
(loss) on investments.......... -- -- 0.001 ( 0.001)
--------- ---------- --------- ----------
Total from investment operations... 0.019 0.044 0.045 0.025
Less distributions:
Dividends from net
investment income.............. ( 0.019) ( 0.044) ( 0.044) ( 0.024)
-------- --------- -------- ----------
Total distributions................ ( 0.019) ( 0.044) ( 0.044) ( 0.024)
-------- --------- -------- ----------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========= ===========
Total Return....................... 1.96%** 4.51% 4.49% 4.83%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 0 $ 56,645 $ 62,098 $ 51,584
Ratios to average net assets:
Expenses........................ 0.85%* 0.72% 0.85% 0.86%*
Net investment income........... 5.37%* 4.55% 4.37% 5.22%*
Management and Distribution support
and service fees waived........... 0.18%* 0.31% 0.19% 0.18%*
</TABLE>
* Annualized
** Unannualized
+ Bradford shares commenced distribution on October 1, 1997.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Municipal Money Market
---------------------------------------------------------------------------------------------
Cortland Shares
---------------------------------------------------------------------------------------------
Six Months
Ended For the Year Ended March 31,
September 30, 2000 -------------------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
--------- --------- --------- --------- --------- ---------
<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........... 0.017 0.026 0.025 0.028 0.026 0.030
--------- --------- --------- --------- --------- ---------
Total from investment operations... 0.017 0.026 0.025 0.028 0.026 0.030
Less distributions:
Dividends from net
investment income.............. ( 0.017) ( 0.026) ( 0.025) ( 0.028) ( 0.026) ( 0.030)
-------- -------- -------- -------- -------- --------
Total distributions................ ( 0.017) ( 0.026) ( 0.025) ( 0.028) ( 0.026) ( 0.030)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return....................... 1.68%** 2.58% 2.56% 2.81% 2.68% 3.06%
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 54,518 $ 54,792 $ 49,234 $ 47,780 $ 153,322 $ 216,456
Ratios to average net assets:
Expenses........................ 1.00%* 1.00% 1.00% 1.01% 1.02% 1.03%
Net investment income........... 3.29%* 2.55% 2.51% 2.81% 2.64% 3.02%
Management and Distribution support
and service fees waived........... 0.03%* 0.03% 0.04% -- -- --
</TABLE>
* Annualized
** Unannualized
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Municipal Money Market
---------------------------------------------------------------------------------------------
Live Oak Shares
---------------------------------------------------------------------------------------------
Six Months
Ended For the Year Ended March 31,
September 30, 2000 -------------------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996+
--------- --------- --------- --------- --------- ---------
<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........... 0.017 0.026 0.026 0.029 0.027 0.011
--------- --------- --------- --------- --------- ---------
Total from investment operations... 0.017 0.026 0.026 0.029 0.027 0.011
Less distributions:
Dividends from net
investment income.............. ( 0.017) ( 0.026) ( 0.026) ( 0.029) ( 0.027) ( 0.011)
-------- -------- -------- -------- -------- --------
Total distributions................ ( 0.017) ( 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 $ 1.00
========= ========= ========= ========= ========= =========
Total Return....................... 1.69%** 2.60% 2.60% 2.93% 2.77% 2.96%*
Ratios/Supplemental Data
Net assets,
end of period (000's omitted)..... $ 61,377 $ 54,132 $ 70,124 $ 67,697 $ 58,794 $ 49,663
Ratios to average net assets:
Expenses........................ 0.98%* 0.98% 0.95% 0.90% 0.93% 0.96%*
Net investment income........... 3.32%* 2.56% 2.57% 2.86% 2.72% 2.91%*
Management and Distribution support
and service fees waived........... 0.00%* 0.00% 0.03% 0.07% 0.04% 0.03%*
</TABLE>
* Annualized
** Unannualized
+ Live Oak shares commenced distribution on November 16, 1995.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
Note 5-Financial Highlights: (Continued)
<TABLE>
<CAPTION>
Municipal Money Market
------------------------------------------------------------------------
Bradford Shares
------------------------------------------------------------------------
For the Period
Ended For the Year Ended March 31,
August 10, 2000 -------------------------------------------------
(Unaudited) 2000 1999 1998+
--------- ---------- --------- -----------
<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............ 0.012 0.027 0.027 0.014
--------- ---------- --------- -----------
Total from investment operations.... 0.012 0.027 0.027 0.014
Less distributions:
Dividends from net
investment income............... ( 0.012) ( 0.027) ( 0.027) ( 0.014)
-------- --------- -------- ----------
Total distributions................. ( 0.012) ( 0.027) ( 0.027) ( 0.014)
-------- --------- -------- ----------
Net asset value, end of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========= ===========
Total Return........................ 1.25%** 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% 0.85% 0.86%*
Net investment income............ 3.40%* 2.69% 2.67% 2.81%*
Management and Distribution support
and service fees waived............ 0.18%* 0.18% 0.18% 0.17%*
</TABLE>
* Annualized
** Unannualized
+ Bradford shares commenced distribution on October 1, 1997.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
CORTLAND
TRUST, INC.
Semi-Annual
September 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not
authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an
effective prospectus, which includes information
regarding the Fund's objectives and policies,
experience of its management, marketability of
shares, and other information.
------------------------------------------------------
Cortland Trust, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
State Street Kansas City
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
CRT900S
--------------------------------------------------------------------------------
<PAGE>
