<PAGE>
MARINER FUND GROUP
- -------------------------------------------------------------------------------
MONEY MARKET FUNDS
HSBC Asset Management [Logo]
- -------------------------------------------------------------------------------
Cash Management Fund
Government Money Market Fund
U.S. Treasury Money Market Fund
SEMI-ANNUAL REPORT (UNAUDITED)
June 30, 1995
Managed by:
HSBC ASSET MANAGEMENT AMERICAS INC.
Sponsored and distributed by:
MARINER FUNDS SERVICES
<PAGE>
MARINER FUND GROUP
MONEY MARKET FUNDS
- -------------------------------------------------------------------------------
HSBC Asset Management [Logo]
- -------------------------------------------------------------------------------
Cash Management Fund
Government Money Market Fund
U.S. Treasury Money Market Fund
July 21, 1995
Dear Shareholder:
The year started with the Federal Reserve raising short term interest rates to
6% ending a thirteen month long series of seven tightening moves. However,
during the remainder of the first half, the Federal Reserve rested to analyze
and take inventory of the lagging economic data.
Consequently, the second quarter's economic data was generally softer than
anticipated, fueling speculation that the quarter's economic growth (GDP) will
be significantly below that of the first quarter. The significant components of
this slow down were weak reports in the areas of employment, housing, consumer
spending and inflation which sparked debates that the economic weakness was a
mid-cycle inventory adjustment due to slower demand growth, a soft landing or
even the beginning of a recession.
As the first half of 1995 drew to a close, the settlement of the Japanese trade
negotiations, comments by Fed Governor Lindsey suggesting that he was in favor
of monetary easing and the specific remarks made by Alan Binder, the Federal
Reserve Vice Chairman, that the Fed with a Federal Funds rate of 6% was being
too restrictive, fueled market expectations that an immediate Fed easing was
just around the corner.
Sincerely,
[GRAPHIC OMITTED]
/s/W. Robert Alexander
W. Robert Alexander
PRESIDENT
<PAGE>
BOARD OF TRUSTEES
JOHN P. PFANN* CHAIRMAN OF THE BOARD; Chairman and President,
JPP Equities, Inc.
WOLFE J. FRANKL* Former Director, North America, Berlin Economic
Development Corporation
WILLIAM L. KUFTA Chief Investment Officer, Beacon Trust Company
ROBERT A. ROBINSON* Trustee, Henrietta and B. Frederick H. Bugher
Foundation
*Member of the Audit and Nominating Committees
- -------------------------------------------------------------------------------
OFFICERS
W. ROBERT ALEXANDER PRESIDENT
STEVEN R. HOWARD SECRETARY
MARK A. POUGNET VICE PRESIDENT AND TREASURER
2
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets as of June 30, 1995 (Unaudited)
CASH MANAGEMENT FUND
Interest/
Discount Maturity Principal
Rate Date Amount Value
------ -------- ---------- ------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER*-53.7%
Avco Financial Services, Inc. .......................... 6.120% 07/11/95 $ 4,000,000 $ 3,993,200
Barclays Bank (Canada) ................................. 5.760 12/05/95 10,000,000 9,748,800
Embarcadero Center I (Dai-Ichi Kangyo
Bank, Ltd. LOC) ................................... 5.990 07/06/95 7,050,000 7,044,135
Epson America Inc. (Fuji Bank LOC) ..................... 6.030 08/03/95 10,000,000 9,944,725
Ford Motor Credit Co. (Canada) ......................... 6.180 07/06/95 10,000,000 9,991,417
Goldman Sachs Group L.P. ............................... 6.250 07/05/95 10,000,000 10,000,000
Iris Partners, L.P.(Sumitomo Bank, Ltd. LOC) ........... 5.940 09/06/95 10,000,000 9,889,450
JMG Funding L.P. (Societe Generale LOC) ................ 5.890 09/22/95 10,000,000 9,864,203
Jeld-Wen, Inc. (Bank of Tokyo LOC) ..................... 6.000 07/13/95 4,250,000 4,241,500
Louis Dreyfus Corp. (Credit Agricole LOC) .............. 5.970 08/14/95 10,000,000 9,927,033
Mitsubishi Motor Credit of America
(Mitsubishi Bank, Ltd. LOC) ....................... 5.880 09/29/95 10,000,000 9,853,000
ONODA USA Inc. (Industrial Bank of Japan LOC) .......... 5.900 09/14/95 5,840,000 5,768,217
Sanwa Business Credit Corp. ............................ 5.970 08/03/95 10,000,000 9,945,275
SRD Finance Inc. (Bank of Toyko, Ltd. LOC) ............. 6.010 07/27/95 5,000,000 4,978,297
------------
Total Commercial Paper (Cost-$115,189,252) ............. 115,189,252
------------
CERTIFICATES OF DEPOSIT-9.3%
Commerzbank AG ......................................... 6.940 01/09/96 10,000,000 10,028,068
PNC Bank, N.A .......................................... 6.240 02/02/96 10,000,000 10,006,642
------------
Total Certificates of Deposit (Cost-$20,034,710) ....... 20,034,710
------------
MEDIUM-TERM NOTES-32.2%
Bankers Trust NY Corp.** ............................... 6.060 07/03/95 10,000,000 10,000,000
Bear, Stearns & Co., Inc.** ............................ 6.163 07/17/95 5,100,000 5,100,000
6.350 07/03/95 5,000,000 5,000,000
Federal Home Loan Bank** ............................... 6.580 07/03/95 20,000,000 20,017,683
General Electric Capital Corp.** ....................... 6.320 07/03/95 9,100,000 9,096,252
Merrill Lynch & Co.** .................................. 6.320 07/03/95 7,000,000 7,000,000
6.360 07/03/95 3,000,000 2,999,020
PHH Corp.** ............................................ 6.450 07/19/95 10,000,000 9,998,422
------------
Total Medium-Term Notes (Cost-$69,211,377) ............. 69,211,377
------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets as of June 30, 1995 (continued)
CASH MANAGEMENT FUND
Interest/
Discount Maturity Principal
Rate Date Amount Value
------ -------- ------------- -------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT-4.8%
Chase Securities Inc., purchased on 06/30/95 .............. 6.050% 07/03/95 $ 10,309,000 $ 10,309,000
(Proceeds at maturity $10,314,197)
collateralized by Federal Home Loan
Mortgage Corporation: $12,625,000,
5.5%, 01/01/99 (Cost-$10,309,000)
-------------
TOTAL INVESTMENTS-100.0% (Cost-$214,744,339)*** ...................................................... 214,744,339
-------------
OTHER ASSETS (LIABILITIES)-0.0%
Cash ................................................................................................ 757
Interest receivable and other assets ................................................................ 1,182,233
Prepaid expenses .................................................................................... 7,034
Dividends payable ................................................................................... (1,052,578)
Accrued expenses payable ............................................................................ (68,849)
Due to affiliates ................................................................................... (91,558)
-------------
Liabilities in excess of other assets-net ...................................................... (22,961)
-------------
NET ASSETS-100% ..................................................................................... $ 214,721,378
=============
NET ASSET VALUE PER SHARE-applicable to 214,723,606 shares
($0.001 par value) outstanding ................................................................. $1.00
=====
<FN>
* Institutions shown in parentheses have entered into credit support
agreements with issuers.
** Stated interest rate as of 6/30/95; maturity date
reflects date of next rate change.
*** Also represents cost for Federal income tax purposes.
</FN>
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets as of June 30, 1995 (Unaudited)
GOVERNMENT MONEY MARKET FUND
Interest/
Discount Maturity Principal
Rate Date Amount Value
------ -------- ----------- ------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCIES DISCOUNT
NOTES-19.6%
Federal Home Loan Mortgage Corp.
(Cost-$24,983,472).......................................... 5.950% 07/05/95 $25,000,000 $ 24,983,472
------------
U.S. TREASURY OBLIGATIONS-7.8%
U.S. Treasury Bills ............................................. 5.245 08/24/95 5,000,000 4,960,662
5.360 08/24/95 5,000,000 4,959,800
-----------
Total U.S. Treasury Obligations (Cost-$9,920,462) .......................................................... 9,920,462
-----------
VARIABLE RATE U.S. GOVERNMENT &
AGENCIES*-39.0%
Federal Farm Credit Bank ........................................ 6.300 07/03/95 29,700,000 29,693,467
6.200 07/03/95 10,000,000 10,000,000
-----------
39,693,467
-----------
Federal Home Loan Mortgage Corp. ................................ 6.580 07/03/95 10,000,000 10,000,000
-----------
Total Variable Rate U.S. Government & Agencies (Cost-$49,693,467)............................................ 49,693,467
-----------
REPURCHASE AGREEMENTS-33.5%
Chase Securities Inc., purchased on 06/30/95 .................... 6.050 07/03/95 20,730,000 20,730,000
(proceeds at maturity $20,740,451)
collateralized by Federal Home Loan Mortgage
Association: $24,250,000, 12/01/08, 6.0%
JP Morgan Securities, Inc., purchased on 06/30/95 ............... 6.125 07/03/95 22,000,000 22,000,000
(proceeds at maturity $22,011,229)
collateralized by Federal National Mortgage
Corporation: $23,992,174, 05/01/09, 7.0%
-----------
Total Repurchase Agreements (Cost-$42,730,000) .............................................................. 42,730,000
-----------
TOTAL INVESTMENTS-99.9% (Cost-$127,327,401)** ............................................................... 127,327,401
-----------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets as of June 30, 1995 (continued)
GOVERNMENT MONEY MARKET FUND
Value
------------
<S> <C>
OTHER ASSETS (LIABILITIES)-0.1%
Cash .............................................................................................. $ 455
Interest receivable and other assets .............................................................. 774,308
Prepaid expenses .................................................................................. 6,432
Dividends payable ................................................................................. (547,665)
Accrued expenses .................................................................................. (15,459)
Due to affiliates ................................................................................. (50,969)
-------------
Other assets in excess of liabilities-net .................................................... 167,102
-------------
NET ASSETS-100% ................................................................................... $ 127,494,503
=============
NET ASSET VALUE PER SHARE-applicable to 127,495,529 shares
( $0.001 par value) outstanding .............................................................. $1.00
=====
<FN>
* Stated interest rate as of 6/30/95; maturity date reflects next rate change.
** Also represents cost for Federal income tax purposes.
</FN>
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets as of June 30, 1995 (Unaudited)
U.S. TREASURY MONEY MARKET FUND
Interest/
Discount Maturity Principal
Rate Date Amount Value
------ -------- ----------- ------------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS-40.8%
U.S. Treasury Bills ........................................... 5.380% 08/17/95 $ 2,500,000 $ 2,482,440
5.255 08/24/95 20,000,000 19,842,350
-----------
Total U.S. Treasury Obligations (Cost-$ 22,324,790) ......................................................... 22,324,790
-----------
REPURCHASE AGREEMENTS-59.6%
Union Bank purchased on 06/30/95** ............................ 6.050 07/03/95 9,500,000 9,500,000
(proceeds at maturity $9,504,790)
collateralized by U.S. Treasury Note:
$9,600,000, 3.87%, 08/31/95
Chase Securities, Inc. ........................................ 6.050 07/03/95 9,841,000 9,841,000
purchased on 06/30/95
(proceeds at maturity $9,845,962)
collateralized by U.S. Treasury Bond:
$9,841,000, 8.75%, 10/15/97
Lehman Government Securities, Inc. ............................ 6.050 07/03/95 2,734,000 2,734,000
purchased on 06/30/95
(proceeds at maturity $2,735,378)
collateralized by U.S. Treasury Bill:
$2,870,000, 5.34%, 12/28/95
Merrill Lynch Government Securities Inc. ...................... 5.750 07/03/95 2,300,000 2,300,000
purchased on 06/30/95
(proceeds at maturity $2,301,102)
collateralized by U.S. Treasury Note:
$2,285,000, 6.875%, 04/30/97
Morgan Stanley & Co., Inc. .................................... 6.020 07/03/95 2,700,000 2,700,000
purchased on 06/30/95(proceeds at maturity $2,701,355)
collateralized by U.S. Treasury Bonds:
$2,300,000, 12.5%, 08/15/14
$400,000, 8.75%, 11/15/08
Donaldson, Lufkin & Jenrette Securities Corp. ................. 5.900% 07/14/95 5,500,000 5,500,000
purchased on 06/15/95**
collateralized by U.S. Treasury Coupon Strips:
$10,828,000, 11/15/96
-----------
Total Repurchase Agreements (Cost-$32,575,000) .............................................................. 32,575,000
-----------
TOTAL INVESTMENTS-100.4% (Cost-$54,899,790)* ................................................................ 54,899,790
-----------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets as of June 30, 1995 (continued)
U.S. TREASURY MONEY MARKET FUND
Value
------------
<S> <C>
OTHER ASSETS (LIABILITIES)-(0.4%)
Cash .............................................................................................. $ 757
Interest receivable ............................................................................... 17,952
Prepaid expenses .................................................................................. 7,592
Dividends payable ................................................................................. (215,947)
Accrued expenses .................................................................................. (14,245)
Due to affiliates ................................................................................. (23,812)
------------
Liabilities in excess of other assets-net .................................................... (227,703)
------------
NET ASSETS-100% ................................................................................... $ 54,672,087
============
NET ASSET VALUE PER SHARE-applicable to 54,672,087 shares
($0.001 par value) outstanding ............................................................... $ 1.00
============
<FN>
* Also represents cost for Federal income tax purposes.
** Stated interest rate as of 6/30/95; maturity date reflects next rate change.
</FN>
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months ended June 30, 1995 (Unaudited)
Cash Government U.S. Treasury
Management Money Market Money Market
Fund Fund Fund
--------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest ....................................... $ 6,570,937 $ 3,880,315 $ 2,683,629
----------- ----------- -----------
Expenses:
Advisory fees .................................. 376,056 226,745 162,253
Administrative services fee .................... 105,378 64,784 46,358
Co-administrative and shareholder servicing fees 101,793 45,349 32,452
Transfer agent fees ............................ 81,653 35,224 44,137
Distribution expenses .......................... 69,689 36,970 28,837
Legal fees ..................................... 20,532 21,315 20,923
Custodian fee .................................. 14,041 12,387 12,456
Audit fees ..................................... 12,432 12,543 11,388
Printing ....................................... 8,797 6,912 6,300
Trustees' fees and expenses .................... 4,284 4,284 4,284
Miscellaneous expenses ......................... 93,378 20,397 6,575
----------- ----------- -----------
Total expenses ............................. 888,033 486,910 375,963
Less expense waivers / reimbursements .......... (49,814) (15,185) (11,556)
----------- ----------- -----------
Net expenses ............................... 838,219 471,725 364,407
----------- ----------- -----------
Net investment income .......................... 5,732,718 3,408,590 2,319,222
----------- ----------- -----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments ............... (2,228) (26) 88
----------- ----------- -----------
Net increase in net assets resulting from operations .. $ 5,730,490 $ 3,408,564 $ 2,319,310
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (Unaudited)
CASH MANAGEMENT FUND
For the
Six Months ended For the
June 30, 1995 Year ended
(Unaudited) December 31, 1994
--------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ................................ $ 5,732,718 $ 8,678,136
Net realized gain (loss) on investments .............. (2,228) 194
------------- -------------
Net increase in net assets resulting from operations 5,730,490 8,678,330
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................ (5,732,914) (8,678,136)
------------- -------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS ........................................... 14,232,227 27,973,263
------------- -------------
Total increase in net assets ........................... 14,229,803 27,973,457
------------- -------------
NET ASSETS:
Beginning of period .................................. 200,491,575 172,518,118
------------- -------------
End of period ........................................ $ 214,721,378 $ 200,491,575
============= =============
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
For the
Six Months ended For the
June 30, 1995 Year ended
(Unaudited) December 31, 1994
--------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ................................ $ 3,408,590 $ 5,359,159
Net realized gain (loss) on investments .............. (26) 13,638
------------- -------------
Net increase in net assets resulting from operations 3,408,564 5,372,797
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................ (3,408,590) (5,359,159)
Net realized gain on investments ..................... -- (13,638)
------------- -------------
Total distributions ................................ (3,408,590) (5,372,797)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS ..................................... (39,301,159) 28,711,019
------------- -------------
Total increase (decrease) in net assets ................ (39,301,185) 28,711,019
------------- -------------
NET ASSETS:
Beginning of period .................................. 166,795,688 138,084,669
------------- -------------
End of period ........................................ $ 127,494,503 $ 166,795,688
============= =============
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (Unaudited)
U.S. TREASURY MONEY MARKET FUND
For the
Six Months ended For the
June 30, 1995 Year ended
(Unaudited) December 31, 1994
--------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ................................ $ 2,319,222 $ 4,376,538
Net realized gain on investments ..................... 88 30,203
------------- -------------
Net increase in net assets resulting from operations 2,319,310 4,406,741
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................ (2,319,222) (4,376,538)
Net realized gain on investments ..................... (88) (30,203)
------------- -------------
Total distributions ................................ (2,319,310) (4,406,741)
------------- -------------
NET DECREASE IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS ..................................... (51,048,294) (27,349,664)
------------- -------------
Total decrease in net assets ........................... (51,048,294) (27,349,664)
------------- -------------
NET ASSETS:
Beginning of period .................................. 105,720,381 133,070,045
------------- -------------
End of period ........................................ $ 54,672,087 $ 105,720,381
============= =============
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies
Mariner Funds Trust (the "Trust") was organized on October 31, 1985 as
a Massachusetts business trust and is a no-load, open-end, diversified
investment company which currently has five separate investment
portfolios, including Cash Management Fund, Government Money Market
Fund and U.S. Treasury Money Market Fund (collectively, the "Funds").
SECURITIES VALUATION: Investment securities are valued at amortized
cost which approximates market value. In the event that a deviation of
1/2 of 1% or more exists between a Fund's $1.00 per share net asset
value, calculated at amortized cost, and the net asset value calculated
by reference to market-based values, or if there is any other deviation
which the Board of Trustees believes would result in a material
dilution to shareholders or purchasers, the Board of Trustees will
promptly consider what action should be taken.
TAXES: It is the Funds' policy to comply with the provisions of the
Internal Revenue Code, as amended, applicable to regulated investment
companies, and to distribute substantially all of their taxable income
and net capital gains to their shareholders for each taxable year.
Therefore, no provision is required for Federal income tax.
DIVIDENDS AND DISTRIBUTIONS: The Funds intend to declare as a dividend
substantially all of their net investment income, which includes
realized gains and losses, if any, at the end of each business day and
pay within five business days after the end of each month.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Security transactions
are recorded on trade date. Identified cost of investments sold is used
for both financial statement and Federal income tax purposes. Interest
income, including amortization of discount or premium, is recorded as
earned.
EXPENSE ALLOCATION: Expenses directly attributed to each Fund in the
Trust are charged to that Fund's operations; expenses which are
applicable to all Funds are allocated among them.
2. Capital
The Trust has authorized an unlimited number of shares of beneficial
interest, par value $0.001 per share for each fund. Transactions in
shares of beneficial interest at $1.00 per share were as follows:
<TABLE>
<CAPTION>
Six Months ended Year ended
June 30, 1995 December 31, 1994
----------------------------------------- --------------------------------------------
Cash Government U.S. Treasury Cash Government U.S. Treasury
Management Money Market Money Market Management Money Market Money Market
Fund Fund Fund Fund Fund Fund
------------ ------------ ------------ -------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Sold............................ 657,603,498 255,163,573 245,990,963 1,175,468,838 473,248,129 474,086,968
Issued in reinvestment
of distributions............. 1,232,643 845,369 341,021 1,332,865 1,061,717 506,254
------------ ------------ ------------ -------------- ------------ ------------
658,836,141 256,008,942 246,331,984 1,176,801,703 474,309,846 474,593,222
Redeemed........................ (644,603,914) (295,310,101) (297,380,278) (1,148,828,440) (445,598,827) (501,942,886)
------------ ------------ ------------ -------------- ------------ ------------
Increase (decrease) in shares... 14,232,227 (39,301,159) (51,048,294) 27,973,263 28,711,019 (27,349,664)
============ ============ ============ ============== ============ ============
</TABLE>
12
<PAGE>
Notes to Financial Statements (continued)
At June 30, 1995, the composition of net assets of each of the Funds
was as follows:
<TABLE>
<CAPTION>
Cash Government U.S. Treasury
Management Money Market Money Market
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
Paid-in capital................ $214,723,608 $127,494,529 $54,672,087
Accumulated realized loss
on investments............. (2,230) (26) --
------------ ------------ ------------
$214,721,378 $127,494,503 $54,672,087
============ ============ ===========
</TABLE>
3. Agreements
The Trust retains HSBC Asset Management Americas Inc. ("HSBC Americas") to
act as Investment Adviser for the Funds. HSBC Americas is the North
American investment affiliate of HSBC Holdings plc (Hong Kong and Shanghai
Banking Corporation). As Investment Adviser, HSBC Americas furnishes
investment guidance and policy direction in connection with the management
of the portfolios of the Funds, subject to policy established by the Board
of Trustees.
As compensation for its services, HSBC Americas is paid monthly
advisory fees at the following annual rates:
Advisory
Portion of each Fund's average daily net assets Fee Rate
------------------------------------------------------ --------
Not exceeding $500 million ........................... 0.350%
In excess of $500 million but not exceeding $1 billion 0.315%
In excess of $1 billion but not exceeding $1.5 billion 0.280%
In excess of $1.5 billion ............................ 0.245%
For the six months ended June 30, 1995, HSBC Americas earned
approximately $376,100, $226,700, and $162,300 in advisory fees for
Cash Management Fund, Government Money Market Fund, and U.S. Treasury
Money Market Fund, respectively.
As Administrator, PFPC Inc. ("PFPC") is paid a monthly asset based fee
of 0.10% of each Fund's first $200 million of average net assets;
0.075% of each Fund's next $200 million of average net assets; 0.05% of
each Fund's next $200 million of average net assets; and 0.03% of each
Fund's average net assets in excess of $600 million; exclusive of
out-of-pocket expenses. PFPC has agreed to waive 10% and 5% of its fee
during the first and second year of its administration, respectively.
For the six months ended June 30, 1995, PFPC earned approximately
$94,700, $58,300, and $41,600, net of fee waivers of approximately
$10,700, $6,500, and $4,700 for Cash Management Fund, Government Money
Market Fund, and U.S. Treasury Money Market Fund, respectively, in
administrative services fees.
HSBC Americas may enter into agreements (the "Service Agreements") with
certain banks, financial institutions and corporations (the "Service
Organizations") whereby each Service Organization handles recordkeeping
and provides certain administrative services for its customers who
invest in the Funds through accounts maintained at that Service
Organization. Each Service Organization will receive monthly payments,
which are based upon expenses that the Service Organization has
incurred in the performance of its services under the Service
Agreements. The payments from each Fund on an annual basis will not
exceed 0.25% of the average value of each Fund's shares held in the
subaccounts of the Service Organizations.
13
<PAGE>
Notes to Financial Statements (continued)
Marine Midland Bank, N.A. ("Marine Midland"), an affiliate of the
Adviser, serves as custodian for the Funds. For furnishing custodian
services, Marine Midland is paid a monthly fee with respect to the
Funds for safekeeping their assets plus certain transaction charges and
out-of-pocket expenses. For the six months ended June 30, 1995, Marine
Midland earned approximately $14,000, $12,400, and $12,500 for Cash
Management Fund, Government Money Market Fund, and U.S. Treasury Money
Market Fund, respectively, in custodian fees.
HSBC Americas earned co-administration and shareholder servicing fees
of 0.03% and 0.04% of each Fund's average net assets, respectively,
totaling approximately $101,800, $45,300, and $32,500, for Cash
Management Fund, Government Money Market Fund, and U.S. Treasury Money
Market Fund, respectively. Of that total, HSBC Americas waived
approximately $39,100, $8,700, and $6,900 of these fees for the month
of January 1995 for Cash Management Fund, Government Money Market
Fund, and U.S. Treasury Money Market, respectively.
The Funds have adopted a Distribution Plan and Agreement (the "Plan")
pursuant to Rule 12b-1 of the Investment Company Act of 1940, as
amended. The Plan provides for a monthly payment by each Fund to
Mariner Funds Services for expenses incurred in connection with
distribution services provided to each Fund not to exceed an annual
rate of 0.20% of the average daily value of each Fund's net assets
during the preceding month.
One state in which the shares of each Fund are qualified for sale
imposes limitations on the expenses of each Fund. The Advisory
Contract and the Administrative Services Contract with HSBC Americas
provide that if, in any fiscal year, the total expenses of each Fund
(excluding taxes, interest, distribution expenses, brokerage
commissions and other portfolio transaction expenses, other
expenditures which are capitalized in accordance with generally
accepted accounting principles and extraordinary expenses, but
including the advisory and administrative services fees) exceed the
expense limitation applicable to each Fund imposed by the securities
regulations of such state, HSBC Americas will pay or reimburse each
Fund in amounts equal to the excess. Although there is no certainty
that this limitation will be in effect in the future, the effective
limitation on an annual basis with respect to each Fund is currently
2.5% per annum of the first $30 million of average net assets, 2.0% of
the next $70 million of average net assets and 1.5% of average net
assets in excess of $100 million. For the six months ended June 30,
1995, there were no payments or reimbursements required as a result of
this expense limitation.
A partner of Baker & McKenzie, legal counsel to the Trust, serves as
Secretary of the Trust. For the six months ended June 30, 1995, each
Fund paid legal fees to Fund counsel of approximately $43,000.
4. Repurchase Agreements
Each Fund may enter into repurchase agreements with government
securities dealers recognized by the Federal Reserve Board, with member
banks of the Federal Reserve System or with such other brokers or
dealers that meet the credit guidelines established by the Funds'
Trustees. The Funds receive securities as collateral whose market value
(including accrued interest), throughout the period of the agreement is
at least equal to 100% of the dollar amount invested by that Fund in
each agreement, and the Fund makes payment for such securities only
upon physical delivery or upon evidence of book entry transfer to the
account of the custodian. If the value of the underlying securities
falls below the value of the repurchase price plus accrued interest,
the Fund will require the seller to deposit additional collateral by
the next business day. If the request for additional collateral is not
met, or the seller defaults on its repurchase obligation, the Fund
maintains the right to sell the underlying securities at market value
and may claim any resulting loss against the seller.
14
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios For a Share Outstanding Throughout Each Period
CASH MANAGEMENT FUND
For the
Six Months ended For the Year ended December 31,
June 30, 1995 ----------------------------------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
----------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD .................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------- --------- --------- --------- --------- ---------
Income From Investment
Operations
Net investment income . 0.022 0.039 0.027 0.037 0.058 0.077
Net realized gain ..... -- -- 0.002 -- -- --
--------- --------- --------- --------- --------- --------
Total from investment
operations .......... 0.022 0.039 0.029 0.037 0.058 0.077
--------- --------- --------- --------- --------- --------
Less Distributions from:
Net investment income . (0.022) (0.039) (0.027) (0.037) (0.058) (0.077)
Net realized gain ..... -- -- (0.002) -- -- --
--------- --------- --------- --------- --------- --------
Total distributions ... (0.022) (0.039) (0.029) (0.037) (0.058) (0.077)
--------- --------- --------- --------- --------- --------
Net asset value,
end of period ........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========= ========= ========= ========= =========
Total return ............... 2.66%(a) 3.95% 3.11% 3.77% 5.92% 8.01%
Ratios/Supplemental Data
Net assets (000),
end of period ....... $ 214,721 $ 200,492 $ 172,518 $ 246,543 $ 373,694 $ 429,096
Ratio of expenses
(net of fee waivers)
to average net assets* 0.79%(B) 0.63% 0.58% 0.62% 0.66% 0.59%
Ratio of net investment
income (net of fee
waivers) to average
net assets* ......... 5.34%(b) 3.84% 2.88% 3.75% 5.80% 7.75%
- ------------
<FN>
* The ratio of net investment income and expenses to average net assets for
the six months ended June 30, 1995 reflects a decrease of 0.01% or $0.001
per share (1994-0.01% or $0.001) due to fee waivers. There were no fee
waivers made to the Fund for the years ended December 31, 1993, 1992, 1991
and 1990.
(a) Not annualized.
(b) Annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios For a Share Outstanding Throughout Each Period
GOVERNMENT MONEY MARKET FUND
For the
Six Months ended For the Year ended December 31,
June 30, 1995 ----------------------------------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
----------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Income From Investment
Operations
Net investment income ... 0.026 0.038 0.028 0.037 0.056 0.076
Net realized gain ....... -- -- 0.001 -- -- --
--------- --------- --------- --------- --------- ---------
Total from investment
operations ............ 0.026 0.038 0.029 0.037 0.056 0.076
--------- --------- --------- --------- --------- ---------
Less Distributions from:
Net investment income ... (0.026) (0.038) (0.028) (0.037) (0.056) (0.076)
Net realized gain ....... -- -- (0.001) -- -- --
--------- --------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS .......... (0.026) (0.038) (0.029) (0.037) (0.056) (0.076)
--------- --------- --------- --------- --------- ---------
Net asset value,
end of period ............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========= ========= ========= ========= =========
Total return ................. 2.63%(a) 3.83% 2.99% 3.80% 5.79% 7.92%
Ratios/Supplemental Data
Net assets (000),
end of period ......... $ 127,495 $ 166,796 $ 138,085 $ 246,327 $ 201,232 $ 237,381
Ratio of expenses
(net of fee waivers) to
average net assets* ... 0.74%(b) 0.63% 0.61% 0.62% 0.63% 0.58%
Ratio of net investment
income (net of fee
waivers) to average
net assets* ........... 5.26%(b) 3.76% 2.89% 3.72% 5.70% 7.63%
- ------------
<FN>
* The ratio of net investment income and expenses to average net assets for
the six months ended June 30, 1995 reflects a decrease of 0.01% Or $0.001
Per share (1994-0.02% Or $0.0002). There were no fee waivers made to the
Fund for the years ended December 31, 1993, 1992, 1991 and 1990.
(a) Not annualized.
(b) Annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios For a Share Outstanding Throughout Each Period
U.S. TREASURY MONEY MARKET FUND
For the
Six Months ended For the Year ended December 31,
June 30, 1995 ----------------------------------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
----------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD .................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------- --------- --------- --------- --------- ---------
Income From Investment
Operations
Net investment income . 0.025 0.036 0.026 0.032 0.055 0.077
--------- --------- --------- --------- --------- ---------
Less Distributions from:
Net investment income . (0.025) (0.036) (0.026) (0.032) (0.055) (0.077)
--------- --------- --------- --------- --------- ---------
Net asset value,
end of period ....... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========= ========= ========= ========= =========
Total Return ............... 2.50%(a) 3.60% 2.65% 3.27% 5.60% 7.94%
Ratios/Supplemental Data
Net assets (000),
end of period ...... $54,672 $105,720 $133,070 $257,898 $220,371 $236,223
Ratios of expenses
(net of fee waivers) to
average net assets* . 0.80%(b) 0.68% 0.59% 0.67% 0.68% 0.52%
Ratio of net investment
income (net of fee
waivers) to average
net assets* ......... 5.00%(b) 3.48% 2.62% 3.22% 5.45% 7.59%
- --------------
<FN>
* The ratio of net investment income and expenses to average net assets for
the six months ended June 30, 1995 reflects a decrease of 0.01% or $0.001
per share (1994-0.02% or $0.0002) (1990-0.09% or $0.0009) due to fee
waivers. There were no fee waivers made to the Fund for the years ended
December 31, 1993, 1992 and 1991.
(a) Not annualized.
(b) Annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
===============================================================================
MARINER FUNDS TRUST
370 17th Street, Suite 2700
Denver, Colorado 80202
GENERAL INFORMATION:
(800) 753-4462
INVESTMENT ADVISER AND CO-ADMINISTRATOR
HSBC Asset Management Americas Inc.
250 Park Avenue
New York, New York 10177
SPONSOR AND DISTRIBUTOR
MarinerSM Funds Services
370 17th Street, Suite 2700
Denver, Colorado 80202
ADMINISTRATOR, TRANSFER
AND DIVIDEND DISBURSING AGENT
PFPC, Inc.
400 Bellevue Parkway
Wilmington, Delaware 19809
CUSTODIAN
Marine Midland Bank, N.A.
140 Broadway
New York, New York 10015
LEGAL COUNSEL
Baker & McKenzie
805 Third Avenue
New York, New York 10022
INDEPENDENT AUDITORS
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
This report is for the information of the shareholders of Mariner Funds Trust.
Its use in connection with any offering of the Trust's shares is authorized only
in the case of a concurrent or prior delivery of the Trust's current prospectus.
===============================================================================
