<PAGE>
January 26, 1995
[PHOTO]
CHARLES B. JOHNSON
Chairman of the Board
Dear AEA Member,
We welcome you to the AEA Cash Management Fund and are pleased to bring you
this semi-annual report, covering the period ended December 31, 1994.
The AEA Cash Management Fund, which became effective February 8, 1994, was
developed exclusively for member companies of the American Electronics
Association (AEA) as a short-term investment vehicle for surplus corporate
cash. Managed by Franklin Advisers, Inc., the fund provides AEA member firms
the opportunity to earn competitive yields while allowing them to devote
valuable time to other important treasury responsibilities. The fund's shares
are offered through Franklin Templeton Distributors, Inc., part of the Franklin
Templeton organization, which currently has over $114 billion in assets under
management. Franklin Templeton is built on over half a century of investment
management experience, with expertise that covers a broad spectrum of
investments.
Since February 1994, short-term interest rates have risen dramatically, led by
the Federal Reserve's tightening of monetary policy. As a result of the fund's
relatively short average weighted maturity, portfolio managers were generally
able to reinvest quickly into securities offering higher current yields. The
fund benefited, as its 7-day yield rose 158 basis points during the six-month
period.
Even before the turnaround in rates, our money market portfolio managers
employed traditional, time-proven strategies, which have been a central part of
our money fund management philosophy for nearly two decades. Our approach
relies on extensive credit research and active management, avoiding exotic,
derivative securities that can entail undue risk to the fund's objectives of
capital preservation and liquidity. We believe that a disciplined security
selection process allows us to maintain high quality portfolios and best serves
our AEA member shareholders.
Thank you for your support of the AEA Cash Management Fund. We look forward to
serving your investment needs in the future.
Sincerely,
Charles B. Johnson
Chairman of the Board,
Franklin's Institutional Fiduciary Trust
1
<PAGE>
OVERVIEW OF THE ECONOMY
Despite volatility in the securities markets, the U.S. economy showed
considerable strength during 1994. Annual Gross Domestic Product (GDP) growth
through the third quarter 1994 averaged 4.40%, compared with just 2.55% for the
prior year. Many economists expected the holiday shopping season to fuel fourth
quarter 1994 GDP. Meanwhile, the country's unemployment rate steadily declined
to 5.4% as of December 31, 1994, and the capacity utilization rate has risen to
over 85.4% as of December 31, 1994.
Although reported economic data has yet to show a significant rise in
inflation, the Federal Reserve Board moved on six occasions during 1994 to
preempt the inflation increases that normally accompany economic recoveries.
During the reporting period, the Federal Reserve pushed up the federal funds
rate -- the interest rate banks charge one another for overnight loans --
another 125 basis points, from 4.25% to 5.50%. Since February 1994, the Federal
Reserve has raised the federal funds rate by a total of 250 basis points.
Looking ahead, lower unemployment and higher corporate earnings unfolding into
1995 will likely translate into higher personal income and spending, which
should continue to fuel the economic growth currently underway. As the economy
approaches full employment, however, capacity utilization rates in the nation's
factories typically rise to a point where labor costs exert additional
inflationary pressures. In addition, many predict GDP growth above the Federal
Reserve's long-term target of 2.5%. As a result, it seems likely the Federal
Reserve may continue to raise short-term rates in the near term in order to
prevent inflation from getting out of control.
[PHOTO]
THOMAS J. RUNKEL, CFA
Portfolio Manager
Tom Runkel is a portfolio manager for Franklin's taxable money market funds. He
joined Franklin in 1983 and served as an equity and money market trader from
1985 to 1989.
Mr. Runkel received a Bachelor of Science degree in Political Science from the
University of California at Davis and a Master of Business Administration
degree from Santa Clara University. He is a Chartered Financial Analyst (CFA).
GRAPHIC MATERIAL (1) OMITTED - SEE APPENDIX
[pick up photo
from 6/30/94 Annual Report
Place per Printer's Dummy]
THOMAS J. RUNKEL, CFA
Portfolio Manager
2
<PAGE>
AEA CASH
MANAGEMENT FUND
The AEA Cash Management Fund's objective is high current income, consistent
with capital preservation and liquidity. It seeks to achieve this objective by
investing all of its assets in The Money Market Portfolio (the Portfolio),
whose investment objective and policies are the same as the fund's. The
Portfolio, in turn, invests in various money market instruments, such as:
o U.S. government and federal agency obligations(1)
o Certificates of deposit
o Bankers' acceptances
o High grade commercial paper
o High grade short-term corporate obligations
o Repurchase agreements collateralized by
U.S. government securities(1)
The portfolio's composition as of December 31, 1994, is shown to the left.
GRAPHIC MATERIAL (2) OMITTED - SEE APPENDIX
Consistent with Rule 2a-7 of the Investment Company Act of 1940, the
Portfolio's holdings are limited to money market instruments within the two
highest rating categories assigned by Standard & Poor's Corporation or Moody's
Investors Service, or in non-rated securities determined by the managers to be
of comparable quality. In addition, the Portfolio invests 100% of its assets in
securities with remaining maturities of 397 days or less. Such relatively short
maturities allow the portfolio to adjust quickly to changes in interest rates.
Through investing in a portfolio of high quality, short-term securities, the
AEA Cash Management Fund can provide a high level of credit safety combined
with a stable net asset value.(2) Its competitive yield has also made it an
attractive alternative to bank money market investments, as well as a
convenient way to diversify cash holdings.(3)
1. U.S. government securities owned by the Portfolio or held under repurchase
agreement, but not shares of the AEA Cash Management Fund, are guaranteed by
the U.S. government as to the timely payment of principal and interest.
2. An investment in the AEA Cash Management Fund is neither insured nor
guaranteed by the U.S. government or by any other entity or institution. There
is no assurance that the $1.00 share price will be maintained.
3. Shares of the fund are not deposits or obligations of any bank or financial
institution. They are not insured or guaranteed by any such institution, the
FDIC, the U.S. government or any government agency, and involve investment
risks, including possible loss of principal.
3
<PAGE>
PERFORMANCE SUMMARY
In response to the continued rise in short-term interest rates, we reduced the
Portfolio's weighted average maturity, from 48 days on June 30, 1994, to 27
days on December 31, 1994. This strategy enabled us to reinvest more quickly in
securities offering higher current interest rates and also helped increase the
Fund's seven-day current yield, from 3.85% on June 30, 1994, to 5.43% on
December 31, 1994.(3)
PERFORMANCE FIGURES
Period Ended December 31, 1994
GRAPHIC MATERIAL (3) OMITTED - SEE APPENDIX
4. The fund's manager has agreed in advance to waive a portion of its
management fees and make payments of certain other expenses to limit total
operating expenses to no more than 0.26% per annum of average net assets.
Without these reductions, the fund's yield would have been lower and the
current and effective 7-day yields for the period would have been 4.63% and
4.74%, respectively. The fund's manager may discontinue these arrangements at
any time after June 30, 1995. Yield reflects fluctuations in interest rates on
portfolio investments and fund expenses. Past performance does not guarantee
future results.
<PAGE>
<PAGE>
INSTITUTIONAL FIDUCIARY TRUST
AEA CASH MANAGEMENT FUND
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUTUAL FUNDS 99.6%
1,392,120 The Money Market Portfolio (Note 1).................................................................. $1,392,120
----------
Total Investments (Cost $1,392,120) 99.6%.................................................. 1,392,120
Other Assets and Liabilities, Net .4%...................................................... 5,676
----------
Net Assets 100.0%.......................................................................... $1,397,796
==========
</TABLE>
At December 31, 1994, there was no unrealized appreciation or depreciation for
financial statements or income tax purposes.
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
INSTITUTIONAL FIDUCIARY TRUST
AEA CASH MANAGEMENT FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
Assets:
Investments in securities, at value and cost.......... $1,392,120
Unamortized organizational costs (Note 2)............. 1,343
Prepaid expenses...................................... 7,827
----------
Total assets..................................... 1,401,290
----------
Liabilities:
Payables
Distribution fees.................................... 437
Shareholder servicing cost........................... 22
Accrued expenses and other liabilities................ 3,035
----------
Total liabilities................................ 3,494
==========
Net assets, at value................................... $1,397,796
==========
Shares outstanding..................................... 1,397,796
==========
Net asset value per share............................. $1.00
==========
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
Investment income:
Dividends..................................... $27,474
----------
Expenses:
Management fees, net (Note 5)................. --
Distribution fees (Note 5).................... 307
Shareholder servicing costs (Note 5).......... 72
Professional fees............................. 1,425
Registration fees............................. 1,332
Reports to shareholders....................... 1,311
Amortization of organization cost (Note 2).... 1,068
Other......................................... 180
Payments from manager (Note 5)................ (5,059)
------
Total expenses........................... 636
----------
Net investment income................... $26,838
==========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED)
AND FOR THE PERIOD ENDED JUNE 30, 1994
<TABLE>
<CAPTION>
SIX MONTHS FEBRUARY 8, 1994
ENDED (EFFECTIVE DATE) TO
12/31/94 JUNE 30, 1994
------------ ---------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............. $ 26,838 $ 4,859
Distributions to shareholders from
net investment income............. (26,838) (4,859)
Increase in net assets from capital
share transactions (Note 3)....... 442,838 954,958
---------- --------
Net increase in net assets.... 442,838 954,958
Net assets (there is no undistributed
net investment income at beginning
or end of the period):
Beginning of period................ 954,958 --
---------- --------
End of period..................... $1,397,796 $954,958
========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
INSTITUTIONAL FIDUCIARY TRUST
AEA CASH MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Institutional Fiduciary Trust (the Trust) is a diversified, open-end management
investment company (mutual fund), registered under the Investment Company Act
of 1940, as amended. The Trust currently consists of nine separate and distinct
Portfolios. This report pertains only to the AEA Cash Management Fund (the AEA
Fund) included in the accompanying financial statements. Each of the Funds
issues a separate series of the Trust's shares and maintains a totally separate
and distinct investment portfolio.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
A. SECURITY VALUATION: The AEA Fund invests all of its investable assets in The
Money Market Portfolio (Portfolio). The value of such investment reflects the
Fund's proportionate interest in the net assets of the Portfolio. As of
December 31, 1994, the AEA Fund owns 0.10% of the Portfolio. The Portfolio's
shares held by the Fund are valued at the net asset value of the Portfolio. The
financial statements of the Portfolio, including the statement of investments,
are included elsewhere in this report and should be read in conjunction with
the Fund's financial statements.
B. INCOME TAXES: The Trust intends to continue to qualify for the tax treatment
applicable to regulated investment companies under the Internal Revenue Code
and to make the requisite distributions to its shareholders which will be
sufficient to relieve it from income and excise taxes. Therefore, no income tax
provision is required. Each Fund is treated as a separate entity in the
determination of compliance with the Internal Revenue Code.
C. SECURITY TRANSACTIONS: Security transactions are accounted for on the date
the securities are purchased or sold (trade date). Realized gains and losses on
security transactions are determined on the basis of specific identification
for both financial statement and income tax purposes.
D. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS: Net investment income
includes income, calculated on an accrual basis, and estimated expenses which
are accrued daily. The total available for dividends is computed daily and
includes the net investment income, plus or minus any gains or losses on
security transactions and changes in unrealized portfolio appreciation or
depreciation, if any.
Dividends are normally declared for each day the New York Stock Exchange is
open for business, equal to the total available for distributions (as defined
above), and are payable to shareholders of record as of the close of business
that day. Such dividends are automatically declared daily and reinvested
monthly in additional shares of these Funds at net asset value.
E. EXPENSE ALLOCATION: Common expenses incurred by the Trust are allocated
among the Funds based on the ratio of net assets of each Fund to the combined
net assets. In all other respects, expenses are charged to each Fund as
incurred on a specific identification basis.
2. UNAMORTIZED ORGANIZATION COSTS
The organization costs of the AEA Fund are amortized on a straight line basis
over a period of five years from the effective date of registration under the
Securities Act of 1933. In the event that Franklin Resources, Inc., (which was
the sole shareholder prior to the effective date) redeems its initial shares
within the five-year period, the pro-rata share of the then-unamortized
deferred organization cost will be deducted from the redemption price paid to
Franklin Resources, Inc. New investors purchasing shares of the fund subsequent
to that date bear such costs during the amortization period only as such
charges are accrued daily against investment income.
3. TRUST SHARES
At December 31, 1994 there were an unlimited number of no par value shares of
beneficial interest authorized, and paid-in capital aggregated $1,397,796.
Transactions in the AEA Fund's shares at $1.00 per share for the six months
ended December 31, 1994 and the period February 8, 1994 (effective date of
registration) to June 30, 1994 are as follows:
<TABLE>
<CAPTION>
SIX MONTHS FEBRUARY 8, 1994
ENDED (EFFECTIVE DATE) TO
DECEMBER 31, 1994 JUNE 30, 1994
----------------- -------------------
<S> <C> <C>
Shares sold....................................................... $ 566,000 $ 950,100
Shares issued in reinvestment of distributions.................... $26,838 4,858
Shares redeemed................................................... ($150,000) --
--------- ---------
Net Increase...................................................... $ 442,838 $ 954,958
========= =========
</TABLE>
3
<PAGE>
INSTITUTIONAL FIDUCIARY TRUST
AEA CASH MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONT.)
4. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales/maturities of securities for the six months
ended December 31, 1994 aggregated $613,871 and $156,854 respectively.
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Franklin Advisers, Inc. ("Advisers"), under terms of an agreement, provides
investment advice, administrative services, office space and facilities to the
AEA Fund, and received fees computed monthly on the last day of the month at an
annualized rate of 3/100 of 1% of the average daily net assets. Fees incurred
by the AEA Fund under the management agreement aggregated $171 for the six
months ended December 31, 1994. The terms of these agreements provide that
aggregate annual expenses of the Fund be limited to the extent necessary to
comply with the limitations set forth in the laws, regulations, and
administrative interpretations of the states in which the Fund's shares are
registered. The Fund's expenses would have exceeded these limitations; however,
for the six months ended December 31, 1994, Franklin Advisers, Inc. agreed in
advance to waive the administration fees and made payments of $5,059 for other
expenses as reflected in the Statement of Operations.
Under the terms of a distribution plan pursuant to rule 12b-1 of the Investment
Company Act of 1940, the AEA Fund will reimburse Franklin/Templeton
Distributors, Inc. in an amount up to .25% per annum of the costs incurred in
the furnishing and promotion, offering and marketing of the AEA Fund's shares.
Fees incurred by the AEA Fund amounted to $307 for the six months ended
December 31, 1994.
Under the terms of a shareholder servicing agreement with Franklin/Templeton
Investor Services, Inc., the Fund pays costs on a per shareholder account
basis. Shareholder servicing costs incurred for the six months ended
December 31, 1994 aggregated $72 of which $60 was paid to Franklin/Templeton
Investor Services, Inc.
Certain officers and trustees of the Trust are also officers and/or
directors of Franklin/Templeton Distributors, Inc., Franklin Advisers, Inc.,
and Franklin/Templeton Investor Services, Inc., all wholly-owned subsidiaries
of Franklin Resources, Inc.
6. FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout the period.
<TABLE>
<CAPTION>
SIX MONTHS FEBRUARY 8, 1994
ENDED (EFFECTIVE DATE) TO
DECEMBER 31, 1994 JUNE 30, 1994
----------------- -------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value at beginning of period............................ $ 1.00 $ 1.00
Net investment income............................................. 0.023 0.014
Distributions from net investment income.......................... (0.023) (0.014)
------- -------
Net asset value at end of period.................................. $ 1.00 $ 1.00
======= =======
TOTAL RETURN**.................................................... 2.33% 1.41%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period (in 000's)............................ $ 1,398 $ 955
Ratio of expenses to average net assets+.......................... 0.11%* 0.11%*
Ratio of expenses to average net assets (excluding waiver
and payment of expenses by administrator)(Note 5)................ 1.03%* 2.60%*
Ratio of net investment income to average net assets.............. 4.71%* 3.69%*
</TABLE>
*Annualized
**Total return measures the change in value of an investment over
the periods indicated. It assumes reinvestment of dividends and capital gains,
if any, at net asset value and is not annualized.
+During the periods indicated, the Advisers agreed to waive in advance its
administration fees and made payments of other expenses of the Fund.
4
<PAGE>
THE MONEY MARKET PORTFOLIOS
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT THE MONEY MARKET PORTFOLIO (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
aSHORT TERM INVESTMENTS 99.8%
BANK NOTES 7.1%
$ 40,000,000 Abbey National Treasury Services, variable rate note, 5.09%, 11/24/95............................ $ 40,000,000
20,000,000 Bayerische Landesbank, New York Branch, 3.55% - 3.625%, 01/18/95................................. 19,998,466
13,000,000 Boatmens 1st National Bank, variable rate note, 5.14%, 04/21/95.................................. 13,001,829
20,000,000 Wachovia Bank, North Carolina Branch, 6.125%, 03/02/95........................................... 19,994,004
10,000,000 Westdeutsche Landesbank, New York Branch, 3.70%, 01/11/95........................................ 9,999,836
--------------
TOTAL BANK NOTES (COST $102,994,135)....................................................... 102,994,135
--------------
BANKERS' ACCEPTANCES 1.3%
5,000,000 NBD Bank, NA, Detroit Branch, 6.15%, 03/13/95.................................................... 4,939,354
15,000,000 Societe Generale, New York Branch, 6.12%, 03/16/95............................................... 14,811,300
--------------
TOTAL BANKERS ACCEPTANCES (COST $39,744,658)............................................... 19,750,654
--------------
CERTIFICATES OF DEPOSIT 13.0%
45,000,000 Bank of Nova Scotia, Portland Branch, 5.37% - 5.70%, 01/09/95 - 02/13/95......................... 44,999,039
30,000,000 Banque Nationale de Paris, New York Branch, 5.45% - 6.15%, 01/17/95 - 02/07/95................... 29,999,691
30,000,000 Commerzbank AG, New York Branch, 3.60% - 5.88%, 02/01/95 - 02/22/95.............................. 29,999,938
45,000,000 National Westminster Bank, New York Branch, 6.25% - 6.28%, 02/28/95 - 03/24/95................... 45,002,841
40,000,000 Societe Generale, New York Branch, 5.18% - 5.50%, 01/03/95 - 01/23/95............................ 39,995,936
--------------
TOTAL CERTIFICATES OF DEPOSIT (COST $189,997,445).......................................... 189,997,445
--------------
COMMERCIAL PAPER 46.0%
25,000,000 Abbey National North America, 5.745%, 02/15/95................................................... 24,820,469
9,000,000 ABN AMRO North America Finance Inc., 5.45%, 01/11/95............................................. 8,986,375
55,000,000 Associates Corp. of North America, 5.42% - 6.15%, 01/13/95 - 03/27/95............................ 54,555,079
40,000,000 AT&T Corp., 5.39% - 5.70%, 01/25/95 - 01/30/95................................................... 39,843,552
40,000,000 Barclays US Funding Corp., 5.49% - 5.50%, 01/03/95 - 01/05/95.................................... 39,978,628
20,000,000 BFCE US Finance Corp., 6.16%, 03/09/95........................................................... 19,770,711
30,000,000 Canadian Imperial Holdings, Inc., 5.37% - 5.73%, 01/20/95 - 02/14/95............................. 29,852,438
10,000,000 Cargill, Inc., 6.16%, 03/29/95................................................................... 9,851,133
10,000,000 Cheltenham & Gloucester Building Society, 5.47%, 01/27/95........................................ 9,960,494
20,000,000 CIESCO L.P., 5.42% - 5.45%, 01/10/95 - 01/12/95.................................................. 19,969,814
55,000,000 General Electric Capital Corp., 4.96% - 5.78%, 01/30/95 - 02/27/95............................... 54,680,536
35,000,000 Goldman Sachs Group, 4.95% - 5.08%, 02/01/95 - 03/07/95.......................................... 34,728,069
10,000,000 Kingdom of Sweden, 5.40%, 01/19/95............................................................... 9,973,000
35,000,000 Merrill Lynch & Co., Inc., 5.40% - 5.78%, 01/17/95 - 02/21/95.................................... 34,827,675
20,000,000 MetLife Funding, Inc., 5.42%, 01/24/95........................................................... 19,930,744
35,000,000 Morgan Stanley Group, Inc., 5.50% - 5.95%, 01/03/95 - 01/26/95................................... 34,936,097
15,000,000 National Australia Funding (DE), Inc., 5.46%, 01/04/95........................................... 14,993,175
30,000,000 Ontario Hydro, 5.44%, 01/06/95................................................................... 29,977,333
40,000,000 Province of Alberta, 5.63% - 5.75%, 02/09/95 - 02/16/95.......................................... 39,724,832
60,000,000 Svenska Handelsbanken, Inc., 5.25% - 6.15%, 01/10/95 - 03/21/95.................................. 59,454,333
40,000,000 Treasury Corp. of New South Wales, 5.80% - 6.15%, 02/23/95 - 03/20/95............................ 39,586,653
25,000,000 U.S. Central Credit Union, 5.73%, 02/17/95....................................................... 24,812,979
15,000,000 Westpac Capital Corp., 5.18% - 5.75%, 01/10/95 - 02/14/95........................................ 14,923,247
--------------
TOTAL COMMERCIAL PAPER (COST $670,137,366)................................................. 670,137,366
--------------
GOVERNMENT SECURITIES 1.0%
15,000,000 U.S. Treasury Notes, 3.875%, 04/30/95 (COST $14,951,251)......................................... 14,951,251
--------------
MEDIUM TERM NOTES 1.4%
20,000,000 Merrill Lynch & Co., Inc., variable rate note, 5.11%, 10/11/95 (COST $20,000,000)................ 20,000,000
--------------
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENTS
(COST $1,017,830,851)..................................................................... 1,017,830,851
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
THE MONEY MARKET PORTFOLIOS
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT THE MONEY MARKET PORTFOLIO (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
aSHORT TERM INVESTMENTS (CONT.)
bRECEIVABLES FROM REPURCHASE AGREEMENTS 30.0%
$ 31,525,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $30,500,643)
Collateral: U.S. Treasury Notes, 4.625%, 02/15/96............................................... $ 30,481,000
25,000,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $23,758,301)
Collateral: U.S. Treasury Notes, 5.50%, 07/31/97................................................ 23,743,000
35,200,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $35,092,601)
Collateral: U.S. Treasury Notes, 7.875%, 04/15/98............................................... 35,070,000
72,655,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $65,037,886)
Collateral: U.S. Treasury Notes, 5.125%, 11/30/98............................................... 64,996,000
50,000,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $45,739,458)
Collateral: U.S. Treasury Notes, 5.125%, 12/31/98............................................... 45,710,000
5,066 cJ.P. Morgan Securities, Inc., 4.44%, 01/03/95 (Maturity Value $5,068)............................ 5,066
39,847,000 J.P. Morgan Securities, Inc., 5.40%, 01/03/95 (Maturity Value $37,912,734)
Collateral: U.S. Treasury Bills, 06/22/95....................................................... 37,890,000
101,390,000 Nikko Securities Co. International, Inc., 5.75%, 01/03/95 (Maturity Value $93,813,898)
Collateral: U.S. Treasury Notes, 5.875%, 03/31/99............................................... 93,754,000
110,000,000 Nikko Securities Co. International, Inc., 5.75%, 01/03/95 (Maturity Value $106,313,879)
Collateral: U.S. Treasury Notes, 6.875%, 08/31/99............................................... 106,246,000
--------------
TOTAL RECEIVABLES FROM REPURCHASE AGREEMENTS (COST $437,895,066)........................... 437,895,066
--------------
TOTAL INVESTMENTS (COST $1,455,725,917) 99.8%......................................... 1,455,725,917
OTHERS ASSETS AND LIABILITIES, NET .2%................................................ 2,262,443
--------------
NET ASSETS 100.0%..................................................................... $1,457,988,360
==============
</TABLE>
At December 31, 1994, there was no unrealized appreciation or depreciation for
financial statements or income tax purposes.
aCertain short-term securities are traded on a discount basis; the rates
shown are the discount rates at the time of purchase by the Fund. Other
securities bear interest at the rates shown, payable at fixed dates or upon
maturity.
bFace amount for repurchase agreements is for the underlying collateral.
cSee Note 1(f) regarding sweep repurchase agreement.
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
THE MONEY MARKET PORTFOLIOS
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT THE U.S. GOVERNMENT SECURITIES MONEY MARKET PORTFOLIO (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
aSHORT TERM INVESTMENTS 100.0%
GOVERNMENT SECURITIES 13.6%
$ 57,000,000 U.S. Treasury Bills, 4.89% - 5.81%, 02/16/95 - 05/25/95 (Cost $55,893,685) ......................... $ 55,893,685
------------
bRECEIVABLES FROM REPURCHASE AGREEMENTS 86.4%
16,360,000 Barclays de Zoete Wedd Securities, Inc., New York, 5.50%, 01/03/95
(Maturity Value $17,010,389) Collateral: U.S. Treasury Notes, 9.25%, 01/15/96 ..................... 17,000,000
16,000,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $15,028,679)
Collateral: U.S. Treasury Notes, 6.00%, 11/30/97 .................................................. 15,019,000
20,000,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $18,466,893)
Collateral: U.S. Treasury Notes, 5.125%, 02/28/98 ................................................. 18,455,000
1,135,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $1,037,668)
Collateral: U.S. Treasury Notes, 5.125%, 03/31/98 ................................................. 1,037,000
23,135,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $21,218,665)
Collateral: U.S. Treasury Notes, 5.125%, 03/31/98 ................................................. 21,205,000
25,000,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $23,053,847)
Collateral: U.S. Treasury Notes, 5.25%, 07/31/98 .................................................. 23,039,000
22,000,000 Daiwa Securities America, Inc., 5.80%, 01/03/95 (Maturity Value $21,258,691)
Collateral: U.S. Treasury Notes, 6.875%, 08/31/99 ................................................. 21,245,000
17,225,000 Dean Witter Reynolds, Inc., 5.50%, 01/03/95 (Maturity Value $17,010,389)
Collateral: U.S. Treasury Notes, 7.375%, 05/15/96 ................................................ 17,000,000
17,705,000 Fuji Securities, Inc., 6.20%, 01/03/95 (Maturity Value $17,011,711)
Collateral: U.S. Treasury Notes, 6.50%, 05/15/97 ................................................. 17,000,000
17,290,000 Greenwich Capital Markets, Inc., 5.50%, 01/03/95 (Maturity Value $17,010,389)
Collateral: U.S. Treasury Notes, 6.125%, 07/31/96 ................................................ 17,000,000
18,450,000 Lehman Government Securities, Inc., 5.75%, 01/03/95 (Maturity Value $17,010,861)
Collateral: U.S. Treasury Notes, 6.00%, 10/15/99 ................................................. 17,000,000
7,928 cJ.P. Morgan Securities, Inc., 4.19%, 01/03/95 (Maturity Value $7,932) ............................. 7,928
101,195,000 J.P. Morgan Securities, Inc., 5.40%, 01/03/95 (Maturity Value $101,255,717) ....................... 101,195,000
17,455,000 Morgan Stanley & Co., Inc., 5.60%, 01/03/95 (Maturity Value $17,010,578)
Collateral: U.S. Treasury Notes, 7.125%, 10/15/98 ................................................ 17,000,000
16,528,000 Nikko Securities Co. International, Inc., 5.75%, 01/03/95 (Maturity Value $17,010,861)
Collateral: U.S. Treasury Notes, 8.25%, 07/15/98 ................................................. 17,000,000
17,804,000 Sanwa Securities (USA) Co., L.P., 5.50%, 01/03/95 (Maturity Value $17,010,389)
Collateral: U.S. Treasury Notes, 6.375%, 07/15/99 ................................................ 17,000,000
18,090,000 Yamaichi International (America), Inc., 5.65%, 01/03/95 (Maturity Value $17,010,672)
Collateral: U.S. Treasury Notes, 5.75%, 10/31/97 ................................................. 17,000,000
------------
TOTAL RECEIVABLES FROM REPURCHASE AGREEMENTS (COST $354,202,928) ........................... 354,202,928
------------
TOTAL INVESTMENTS (COST $410,096,613) 100.0% ......................................... 410,096,613
LIABILITIES IN EXCESS OF OTHER ASSETS, NET ............................................ (219,018)
------------
NET ASSETS 100.0% .................................................................... $409,877,595
============
</TABLE>
At December 31, 1994, there was no unrealized appreciation or depreciation for
financial statement or income tax purposes.
aCertain short-term securities are traded on a discount basis; the rates
shown are the discount rates at the time of purchase by the Fund. Other
securities bear interest at the rates shown, payable at fixed dates or upon
maturity.
bFace amount for repurchase agreements is for the underlying collateral.
cSee Note 1(f) regarding sweep repurchase agreement.
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
THE MONEY MARKET PORTFOLIOS
FINANCIAL STATEMENTS
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
DECEMBER 31, 1994 (UNAUDITED) FOR THE YEAR ENDED DECEMBER 31, 1994 (UNAUDITED)
<CAPTION>
THE THE U.S. THE THE U.S.
MONEY GOVERNMENT MONEY GOVERNMENT
MARKET SECURITIES MONEY MARKET SECURITIES MONEY
PORTFOLIO MARKET PORTFOLIO PORTFOLIO MARKET PORTFOLIO
-------------- ---------------- -------------- ----------------
<S> <C> <C> <S> <C> <C>
Assets: Investment income:
Investments in Interest $28,366,649 $9,851,732
securities, at value ----------- ----------
and cost $1,017,830,851 $ 55,893,685 Expenses:
Receivables from Management fees, net
repurchase agreements, (Note 4) 807,445 280,812
at value and cost 437,895,066 354,202,928 Reports to shareholders 24,706 5,402
Interest receivables 2,920,195 110,876 Custodian fees 7,711 12,063
Prepaid expenses 12,714 15,651 Professional fees 4,959 2,865
-------------- ------------ Trustees' fees and expenses 2,494 1,165
Total assets 1,458,658,826 410,223,140 Other 5,772 2,979
-------------- ------------ ----------- ----------
Liabilities: Total expenses 853,087 305,286
Payables: ----------- ----------
Distributions to Net investment
shareholders 1,777 277,083 income 27,513,562 9,546,446
Management fees 173,369 58,609 ----------- ----------
Capital shares Realized gain
repurchased 483,448 - on investments - 392
Accrued expenses and ----------- ----------
other liabilities 11,872 9,853 Net increase in net
-------------- ------------ assets resulting
Total liabilities 670,466 345,545 from operations $27,513,562 $9,546,838
-------------- ------------ =========== ==========
Net assets, at value $1,457,988,360 $409,877,595
============== ============
Shares outstanding 1,457,988,360 409,877,595
============== ============
Net asset value
per share $1.00 $1.00
============== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
THE MONEY MARKET PORTFOLIOS
FINANCIAL STATEMENTS (CONT.)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1994 (UNAUDITED)
AND THE PERIOD ENDED JUNE 30, 1993
<TABLE>
<CAPTION>
THE U.S. GOVERNMENT SECURITIES
THE MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
------------------------------- --------------------------------
PERIOD YEAR PERIOD YEAR
ENDED 12/31/94 ENDED 6/30/94 ENDED 12/31/94 ENDED 6/30/94
--------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 27,513,562 $ 9,998,562 $ 9,546,446 $ 7,622,616
Net realized gain (loss) from security transactions....... - (5,146) 392 350
-------------- ------------ ------------ ------------
Net increase in net assets resulting from operations...,.. 27,513,562 9,993,416 9,546,838 7,622,966
Distributions to shareholders from undistributed
net investment income..................................... (27,513,562) (9,993,416)+++ (9,546,838)++ (7,622,966)+
Increase (decrease) in net assets from capital share
transactions (Notes 2 and 5).............................. 1,238,799,137 (3,168,832) 191,329,530 (91,771,434)
-------------- ------------ ------------ ------------
Net increase (decrease) in net assets...................... 1,238,799,137 (3,168,832) 191,329,530 (91,771,434)
Net assets (there is no undistributed net investment
income at beginning or end of the period):
Beginning of period...................................... 219,189,223 222,358,055 218,548,065 310,319,499
-------------- ------------ ------------ ------------
End of period............................................ $1,457,988,360 $219,189,223 $409,877,595 $218,548,065
============== ============ ============ ============
</TABLE>
+Distributions were increased by net realized gain from security
transactions of $350.
++Distributions were increased by net realized gain from security
transactions of $392.
+++Distributions were reduced by net realized loss from security
transactions of $5,146.
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
THE MONEY MARKET PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Money Market Portfolios (the Money Market) is a no load, open-end
diversified management investment company (mutual fund), registered under
the Investment Company Act of 1940, as amended. The Money Market has
two portfolios (the Portfolios) consisting of: The Money Market
Portfolio and The U.S. Government Securities Money Market Portfolio. Each
of the Portfolios issues a separate series of shares and maintains a totally
separate and distinct investment portfolio. The shares of the Money Market
are issued in private placements and are thus exempt from registration under
the Securities Act of 1933.
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
The policies are in conformity with generally accepted accounting principles
for investment companies.
A. SECURITY VALUATION:
Portfolio securities are valued at amortized cost, which approximates value.
Each of the Portfolios must maintain a dollar weighted average maturity of 90
days or less and only purchase instruments having remaining maturities of 397
days or less. If a Portfolio has a remaining weighted average maturity of
greater than 90 days, the Portfolio will be stated at value based on recorded
closing sales on a national securities exchange or, in the absence of a
recorded sale, within the range of the most recent quoted bid and asked prices.
The trustees have established procedures designed to stabilize, to the extent
reasonably possible, each Portfolio's price per share as computed for the
purpose of sales and redemptions at $1.00.
B. INCOME TAXES:
The Money Market intends to continue to qualify for the tax treatment
applicable to regulated investment companies under the Internal Revenue Code
and to make the requisite distributions to its shareholders which will be
sufficient to relieve it from income and excise taxes. Therefore, no income tax
provision is required.
Each Portfolio is treated as a separate entity in the determination of
compliance with the Internal Revenue Code.
C. SECURITY TRANSACTIONS:
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Realized gains and losses on security
transactions are determined on the basis of specific identification for both
financial statement and income tax purposes.
D. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS:
Net investment income includes income, calculated on an accrual basis,
amortization of original issue and market discount or premium (if any), and
estimated expenses which are accrued daily. The total available for dividends
is computed daily and includes the net investment income, plus or minus any
gains or losses on security transactions and changes in unrealized portfolio
appreciation or depreciation, (if any).
Dividends are normally declared for each day the New York Stock Exchange is
open for business, equal to the total available for distributions (as defined
above), and are payable to shareholders of record as of the close of business
that day. Such dividends are automatically reinvested monthly in additional
shares of the Portfolio at net asset value.
E. EXPENSE ALLOCATION:
Common expenses incurred by the Money Market are allocated among the Portfolios
based on the ratio of net assets of each Portfolio to the combined net assets.
In all other respects, expenses are charged to each Portfolio as incurred on a
specific identification basis.
F. REPURCHASE AGREEMENTS:
The Portfolios may enter into repurchase agreements with government securities
dealers recognized by the Federal Reserve Board and/or member banks of the
Federal Reserve System. In a repurchase agreement, the Portfolios purchases a
U.S. government security from a dealer or bank subject to an agreement to
resell it at a mutually agreed upon price and date. Such a transaction is
accounted for as a loan by the Portfolio to the seller, collateralized by the
underlying security. The transaction requires the initial collateralization of
the seller's obligation by U.S. government securities with market value,
including accrued interest, of at least 102% of the dollar amount invested by
the Portfolio, with the value of the underlying security marked to market daily
to maintain coverage of at least 100%. The collateral is delivered to the
Portfolios' custodian and held until resold to the dealer or bank. At December
31, 1994, all outstanding repurchase agreements held by the Portfolios had been
entered into on that date.
The Portfolios may enter into a sweep agreement with their custodian bank. In a
sweep, the excess cash in the Portfolios' direct deposit accounts at the end of
the day is invested overnight. The Money Market Portfolio's excess cash is
invested in a AAA rated time deposit of Morgan Guaranty Trust Company's Nassau
branch. The U.S. Government Securities Money Market Portfolio's excess cash is
invested in a U.S. government backed repurchase agreement with Morgan Guaranty
of New York. Funds are returned to the Portfolios' direct deposit accounts as
the first transaction of the next business day.
31
<PAGE>
THE MONEY MARKET PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)
2. TRUST SHARES
At December 31, 1994, there was an unlimited number of $.01 par value
shares of beneficial interest authorized, and paid-in capital aggregated as
follows:
<TABLE>
<CAPTION>
THE U.S. GOVERNMENT
THE MONEY SECURITIES MONEY
MARKET PORTFOLIO MARKET PORTFOLIO
---------------- -------------------
<S> <C> <C>
Paid-in capital......................................... $ 1,457,988,360 $ 409,877,595
=============== ===============
</TABLE>
Transactions in the Portfolios' shares at $1.00 per share for the six months
ended December 31, 1994 and the year ended June 30, 1994 are as follows:
<TABLE>
<CAPTION>
THE U.S. GOVERNMENT
THE MONEY SECURITIES MONEY
MARKET PORTFOLIO MARKET PORTFOLIO
---------------- -------------------
<S> <C> <C>
Period ended December 31, 1994
Shares sold............................................. $ 1,670,645,690 $ 1,466,094,747
Shares issued in reinvestment of distributions.......... 27,511,902 9,547,126
Shares redeemed......................................... (1,592,056,244) (1,422,937,135)
Shares issued in connection with assets transfer (Note 5). 1,132,697,789 138,624,792
--------------- ---------------
Net increase............................................ $ 1,238,799,137 $ 191,329,530
=============== ===============
Year ended June 30, 1994
Shares sold............................................. $ 1,699,503,699 $ 2,476,681,838
Shares issued in reinvestment of distributions.......... 9,993,345 7,620,764
Shares redeemed......................................... (1,712,665,876) (2,576,074,036)
--------------- ---------------
Net decrease............................................ $ (3,168,832) $ (91,771,434)
=============== ===============
</TABLE>
3. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales/maturities of securities, including repurchase
agreements, for the six months ended December 31, 1994 were as follows:
<TABLE>
<CAPTION>
THE U.S. GOVERNMENT
THE MONEY SECURITIES MONEY
MARKET PORTFOLIO MARKET PORTFOLIO
---------------- -------------------
<S> <C> <C>
Purchases............................................... $31,456,519,553 $42,459,700,296
=============== ===============
Sales................................................... $31,272,859,704 $42,269,978,691
=============== ===============
</TABLE>
4. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Franklin Advisers, Inc., under the terms of a management agreement, provides
investment advice, administrative services, office space and facilities to the
Portfolios, and receives fees computed monthly on the average daily net assets
of the Portfolios during the month. The Money Market Portfolio and The U.S.
Government Securities Money Market Portfolio pay a fee equal to an annualized
rate of 15/100 of 1% of their average daily net assets.
The terms of the agreement provide that annual aggregate expenses of the
Portfolios be limited to the extent necessary to comply with the limitations
set forth in the laws, regulations and administrative interpretations of the
states in which the Portfolios' shares are registered. The Portfolios' expenses
did not exceed these limitations; however, for the period ended December 31,
1994, Franklin Advisers, Inc. agreed in advance to waive a portion of the
management fees for The Money Market Portfolio and The U.S. Government
Securities Money Market Portfolio by $45,283 and $24,533, respectively.
Certain officers and trustees of the Portfolios are also officers and/or
directors of Franklin Advisers, Inc. and Franklin/Templeton Investor Services,
Inc., all wholly-owned subsidiaries of Franklin Resources, Inc.
5. ASSETS TRANSFER
On August 1, 1994, the Franklin Money Fund and the Franklin Federal Money Fund
transferred substantially all of their assets, respectively, into The Money
Market Portfolio and The U.S. Government Securities Money Market Portfolio. The
transfers were accompanied by a tax-free exchange of 1,132,697,789 capital
shares of The Money Market Portfolio for net assets valued at $1,132,697,789 of
the Franklin Money Fund and 138,624,792 capital shares of The U.S. Government
Securities Money Market Portfolio for net assets valued at $138,624,792 of the
Franklin Federal Money Fund.
32
<PAGE>
THE MONEY MARKET PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)
As of December 31, 1994, the shares of The Money Market Portfolio were owned by
the following funds:
<TABLE>
<CAPTION>
PERCENTAGE OF
SHARES OUTSTANDING SHARES
------------- ------------------
<S> <C> <C>
Franklin Money Fund.............................................. 1,236,849,414 84.83%
Institutional Fiduciary Trust Money Market Portfolio............. 219,453,043 15.05%
Institutional Fiduciary Trust AEA Cash Management Fund........... 1,392,120 0.10%
Institutional Fiduciary Trust Franklin Cash Reserves Fund........ 293,783 0.02%
</TABLE>
As of December 31, 1994, the shares of The U.S. Government Securities
Money Market Portfolio were owned by the following funds:
<TABLE>
<CAPTION>
PERCENTAGE OF
SHARES OUTSTANDING SHARES
------------- ------------------
<S> <C> <C>
Institutional Fiduciary Trust Franklin U.S. Government Securities
Money Market Portfolio........................................... 254,361,961 62.06%
Franklin Federal Money Fund...................................... 155,515,634 37.94%
</TABLE>
6. FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout the period.
<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------- ---------------------------------------
NET ASSET DISTRIBUTIONS NET ASSETS RATIO OF RATIO OF
VALUES AT NET FROM NET NET ASSET AT END EXPENSES NET INCOME
PERIOD ENDED BEGINNING INVESTMENT INVESTMENT VALUES AT TOTAL OF PERIOD TO AVERAGE TO AVERAGE
JUNE 30, OF PERIOD INCOME INCOME END OF PERIOD RETURN++ (IN 000's) NET ASSETS+ NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
THE MONEY MARKET PORTFOLIO
1993* $1.00 $0.027 $(0.027) $1.00 2.92%** $ 222,358 0.15%** 3.18%**
1994 1.00 0.033 (0.033) 1.00 3.33 219,189 0.15 3.25
1994*** 1.00 0.024 (0.024) 1.00 2.41 1,457,988 0.15** 4.75**
THE U.S. GOVERNMENT SECURITIES MONEY MARKEt PORTFOLIO
1993* 1.00 0.021 (0.021) 1.00 2.27** 310,319 0.15** 3.05**
1994 1.00 0.032 (0.032) 1.00 3.25 218,548 0.15 3.20
1994*** 1.00 0.023 (0.023) 1.00 2.36 409,878 0.15** 4.74**
</TABLE>
*July 28, 1992 (Effective date of registration) to June 30, 1993.
**Annualized
***For the six months ended December 31, 1994.
++Total return measures the change in value of an investment over the periods
indicated. It assumes reinvestment of dividends and capital gains, if any, at
net asset value and is not annualized.
+During the period indicated, the Manager agreed to waive in advance a portion
of its management fees of the Portfolios. Had such action not been taken, the
ratios of expenses to average net assets would have been as follows.
<TABLE>
<CAPTION>
RATIO OF EXPENSES TO
AVERAGE NET ASSETS
--------------------
<S> <C>
THE MONEY MARKET PORTFOLIO
1993*....................... .17%**
1994........................ .17
1994***..................... .18**
THE U.S. GOVERNMENT SECURITIES
MONEY MARKET PORTFOLIO
1993*....................... .18%**
1994........................ .17
1994***..................... .16**
</TABLE>
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)
Graphic Material (1)
This chart shows in bar graph format the Federal Reserve
Board's Target for the Federal Funds Rate.
<TABLE>
<CAPTION>
Federal Reserve Board's
Target for Federal Funds Rate
December 1993 - December 1994
<S> <C>
12/93 3.00%
1/94 3.00%
2/94 3.25%
3/94 3.50%
4/94 3.75%
5/94 4.25%
6/94 4.25%
7/94 4.25%
8/94 4.75%
9/94 4.75%
10/94 4.75%
11/94 5.50%
12/94 5.50%
</TABLE>
Graphic Material (2)
This chart shows in pie chart format the portfolio
composition as a percentage of total net assets.
<TABLE>
<CAPTION>
The Money Market Portfolio
Composition as of December 31, 1994
<S> <C>
Treasuries 1%
Medium Term Notes 1%
Banker Acceptances 3%
Bank Notes 6%
Certificates of Deposit 13%
Repurchase Agreements 30%
Commercial Paper 46%
</TABLE>
Graphic Material (3)
This chart shows in bar graph format the fund's
average weighted maturity in days.
<TABLE>
<CAPTION>
Average Weighted
Maturity (days)
<S> <C>
June 30, 1994 48 days
December 31, 1994 27 days
</TABLE>
Graphic Material (4)
This chart shows in table format the fund's 7-day
current and effective yields and the fund's average
weighted maturity.
<TABLE>
<CAPTION>
Performance Figures
Period Ended December 31, 1994
<S> <C>
7-Day Current Yield 5.43%
7-Day Effective Yield 5.58%
Average Weighted Maturity 27 days
</TABLE>
