THE TREASURER'S FUND
19 OLD KINGS HIGHWAY SOUTH
DARIEN, CT 06820
1 (800) TSR-FUND / 1 (800) 877-3863
ANNUAL REPORT
OCTOBER 31,1995
INVESTMENT ADVISOR
- --------------------------------------------------------------------------------
GABELLI-O'CONNOR FIXED INCOME MUTUAL FUNDS MANAGEMENT CO.
19 Old Kings Highway South
Darien, CT 06820
ADMINISTRATOR
- --------------------------------------------------------------------------------
FURMAN SELZ INCORPORATED
230 Park Avenue
New York, NY 10169
DISTRIBUTOR
- --------------------------------------------------------------------------------
GOC FUND DISTRIBUTORS, INC.
19 Old Kings Highway South
Darien, CT 06820
CUSTODIAN
- --------------------------------------------------------------------------------
CUSTODIAL TRUST COMPANY
101 Carnegie Center
Princeton, NJ 08540
LEGAL COUNSEL
- --------------------------------------------------------------------------------
BATTLE FOWLER LLP
75 East 55th Street
New York, NY 10022
INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
THIS REPORT IS FOR THE INFORMATION OF THE SHAREHOLDERS OF THE TREASURER'S FUND.
ITS USE IN CONNECTION WITH ANY OFFERING OF THE FUND'S SHARES IS AUTHORIZED ONLY
IN CASE OF A CONCURRENT OR PRIOR DELIVERY OF THE FUND'S CURRENT PROSPECTUS. THE
TREASURER'S FUND
<PAGE>
December 8, 1995
Dear Fellow Shareholder:
We are pleased to present the annual report for The Treasurer's Fund for
the fiscal year ended October 31, 1995. The total net assets of The Treasurer's
Fund portfolios on October 31, 1995 (in millions) were:
Domestic Prime Money Market Portfolio $169.3
Tax Exempt Money Market Portfolio 140.8
U.S. Treasury Money Market Portfolio 94.8
------
$404.9
The portfolios continue to hold investments in very high quality money
market securities of domestic, corporate and municipal issuers and U.S.
Government obligations. The weighted average maturities of the portfolios were
well within the permitted maximum of 90 days as stated below:
Domestic Prime Money Market Portfolio 26 days
Tax Exempt Money Market Portfolio 65 days
U.S. Treasury Money Market Portfolio 37 days
The fixed income markets have continued to rally dramatically in the second
half of 1995. An annualized inflation rate somewhat less than three percent, a
consumer that seems to be pushing the upper bounds of credit limits, and
projections for slow to moderate economic growth for 1996 have all been
contributing factors to the bullish sentiment that has manifested itself in
markets this fall. The entire treasury yield curve has shifted down and
flattened with the thirty year bond briefly breaking the 6.00% yield level
before settling back slightly.
The most recent employment report released by the Labor Department showed
non-farm payrolls increased 166,000 in November but October was revised down
significantly and the unemployment rate ticked up slightly to 5.6%. Recent
reports of new home sales, leading economic indicators and wholesale sales were
all down indicating that the economy may be slowing from the third quarter in
which GDP was initially reported as rising a surprising 4.2%. Questions remain
as to how active the consumer will be during the always important holiday retail
season. The market sentiment is that the Fed will need to give the economy a
little shot in the arm, with most participants expecting a rate cut at the
upcoming FOMC meeting on December 19th.
We continue to be positive on the market in the long run for three primary
reasons. First and foremost, inflation as measured on both the producer and
consumer levels remains very much in control and should provide the Fed plenty
of room to ease rates down the road without too much concern for price
volatility. Second, we believe that while it would be bucking an overwhelming
historic record, some significant progress on a budget resolution is a real
possibility. Financial markets desperately want some fiscal discipline out of
Washington. This could provide the Fed with more room to lighten up on the
monetary brake. Third, we are quickly approaching a presidential election year
with its accompanying bipartisan (at least) campaign. Keeping rates low will
take on increased importance for the current administration.
We expect that the mix of economic data will provide a measure of
volatility to the short term market. We will continue to identify and exploit
trading ranges in the market in an effort to enhance the total rates of return
on our money market portfolios. While taking advantage of the cheapest area of
the curve, namely overnight, we will pursue a simple straightforward strategy,
take profits and shorten average maturity on market strength and lengthen on
market weakness.
Sincerely,
/s/ Ronald S. Eaker
Ronald S. Eaker
President and Chief Investment Officer
The Domestic Prime Money Market Portfolio, Tax-Exempt Money Market Portfolio,
and U.S. Treasury Money Market Portfolio attempt to maintain a stable net asset
value per share of $1.00. There can be no assurance that the Portfolios will be
successful in this regard.
Past performance is not indicative of future results.
Investments in the Portfolios are not insured, nor guaranteed, by the U.S.
Government.
<PAGE>
THE TREASURER'S FUND
DOMESTIC PRIME MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1995
<TABLE>
<CAPTION>
YIELD TO
MATURITY
CREDIT AT TIME OF MATURITY PRINCIPAL VALUE
RATINGS* PURCHASE DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- --------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER - 38.7%
Island Finance Puerto Rico, Inc., 5.70%(a)(b) .................. A1+/P1/F1+/D1+ 5.839% 11/03/95 $7,200,000 $ 7,197,720
Agway Financial Corp. (LOC Rabobank), 5.75%.................... A1+/P1 5.848 11/08/95 5,700,000 5,693,627
Omnicom Finance, Inc. (LOC Swiss Bank), 5.73%.................. A1+/P1 5.823 11/10/95 5,000,000 4,992,838
First Credit Corp., 5.78%...................................... A1/P1 5.891 11/17/95 8,000,000 7,979,449
Louis Dreyfus Corp. (LOC Credit Agricole), 5.73%............... A1+/P1 5.831 11/22/95 8,000,000 7,973,260
American Trading & Production Corp., 5.74%..................... A1/P1 5.851 11/28/95 8,000,000 7,965,560
International Lease Finance Corp., 5.67%(a) ................... A1/P1/D1+ 5.831 01/08/96 8,000,000 7,914,320
Transamerica Financial Corp., 5.75%(a) ........................ A1/P1/D1 5.898 01/11/96 8,000,000 7,909,278
General Electric Capital Corp., 5.64%.......................... A1+/P1 5.802 01/16/96 8,000,000 7,904,747
----------
TOTAL COMMERCIAL PAPER ............................................................................................... 65,530,799
----------
ADJUSTABLE RATE SECURITIES - 16.6%
Health Insurance Plan of Greater New York ACES,
Series 1990B-1, (07/01/16)**................................. A1+/NR 5.900 11/01/95 3,200,000 3,200,000
Small Business Administration 6.50%, due 09/25/13
Pool #502521(3)***........................................... NR/NR 6.590 11/01/95 1,791,232 1,791,232
Small Business Administration 6.75%, due 02/25/18
Pool #502161(4)*** .......................................... NR/NR 6.861 11/01/95 1,591,089 1,587,355
Small Business Administration 6.75%, due 04/25/18
Pool #502220(4)***........................................... NR/NR 6.857 11/01/95 1,718,688 1,715,790
Small Business Administration 6.75%, due 05/25/18
Pool #502159(5)***........................................... NR/NR 6.861 01/01/96 8,369,283 8,350,559
Small Business Administration 6.375%, due 01/25/19
Pool #502519(6)***........................................... NR/NR 6.472 01/01/96 2,415,610 2,373,831
Small Business Administration 6.75%, due 06/25/19
Pool #502635(4)***........................................... NR/NR 6.852 11/01/95 4,039,694 4,034,926
Student Loan Marketing Association
Note (12/14/95)(7)***........................................ NR/Aaa 5.891 11/06/95 5,000,000 5,000,000
----------
TOTAL ADJUSTABLE RATE SECURITIES ..................................................................................... 28,053,693
----------
U.S. TREASURY ISSUES - 2.8%
U.S. Treasury Bills ............................................................ 5.578 06/27/96 5,000,000 4,826,559
----------
TOTAL U.S. TREASURY ISSUES ........................................................................................... 4,826,559
----------
U.S. GOVERNMENT AGENCIES - 3.0%
Federal National Mortgage Association Discount Notes .......... NR/NR 5.758 11/02/95 5,000,000 4,999,222
----------
TOTAL U.S. GOVERNMENT AGENCIES ....................................................................................... 4,999,222
----------
See accompanying notes to financial statements
</TABLE>
2
<PAGE>
THE TREASURER'S FUND
DOMESTIC PRIME MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
YIELD TO
MATURITY
CREDIT AT TIME OF MATURITY PRINCIPAL VALUE
RATINGS* PURCHASE DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- --------
LOAN PARTICIPATIONS - 7.7%
<S> <C> <C> <C> <C> <C>
Bell Atlantic Financial Services, 5.97% (Chase Securities)(2).. NR/NR 5.800% 11/01/95 $ 5,000,000 $ 5,000,000
Morgan Stanley Group, 5.92% (Citibank)(2)...................... NR/NR 5.920 11/01/95 8,000,000 8,000,000
------------
TOTAL LOAN PARTICIPATIONS ............................................................................................ 13,000,000
------------
REPURCHASE AGREEMENTS - 31.0%
Bear Stearns & Co. dated 10/31/95................................................. 5.900 11/01/95 22,471,546 22,471,546
(Proceeds at maturity, $22,475,229) collateralized by:
$5,060,000 U.S. Treasury STRIPS 08/15/19 vs. $1,072,113
$41,337,000 U.S. Treasury STRIPS 02/15/09 vs. $17,917,109
$23,300,000 U.S. Treasury STRIPS 08/15/23 vs. $3,931,875
Nomura Securities International, Inc., dated 10/31/95............................. 5.900 11/01/95 30,000,000 30,000,000
(Proceeds at maturity, $30,004,917) collateralized by:
$15,000,000 FNMA Med. Term Note 6.63%, 08/16/00 vs. $15,412,500
$15,115,000 FHLMC Med. Term Note 6.78%, 03/28/01 vs. $15,190,575
------------
TOTAL REPURCHASE AGREEMENTS .......................................................................................... 52,471,546
------------
TOTAL INVESTMENTS - 99.8% (COST $168,881,819)+ ...................................................................... $168,881,819
============
*,**,***, +,(a),(b) See Footnotes to Portfolios
</TABLE>
3
<PAGE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1995
<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- --------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES - 99.3%
ALABAMA - 1.4%
Huntsville IDR TENR #66 (Avco Corporation Project)
Series 1982 (LOC Wachovia Bank) (11/01/99)**................ Aa2/NR 4.450% 11/07/95 $2,000,000 $ 2,000,000
----------
ARIZONA - 1.8%
Arizona HFAR, Series 1985 (Pooled Loan Program) (FGIC)
(10/01/15)**................................................ VMIG1/A1 4.000 11/07/95 500,000 500,000
Pima County IDA, Series 1982 A (Tucson Electric Power Co.)
(LOC Bank of America) (07/01/22)**.......................... VMIG1/A1 4.000 11/07/95 2,000,000 2,000,000
----------
TOTAL ARIZONA 2,500,000
----------
COLORADO - 3.1%
Platte River Power Authority Electric Revenue
Subordinated Lien Series S-1 (SPA Morgan Guaranty Trust)
(06/01/18)****(b) .......................................... VMIG1/A1/F1+ 3.200 11/09/95 2,000,000 2,000,000
Platte River Power Authority Electric Revenue
Subordinated Lien Series S-1 (SPA Morgan Guaranty Trust)
(06/01/18)****(b) .......................................... VMIG1/A1/F1+ 3.750 01/18/96 2,300,000 2,300,000
----------
TOTAL COLORADO 4,300,000
-----------
CONNECTICUT - 1.4%
Connecticut Special Assessment Unemployment Compensation
Revenue (FGIC) (11/15/01)***(b) ............................ VMIG1/A1+/F1+ 3.900 07/01/96 2,000,000 2,000,000
----------
FLORIDA - 5.0%
Dade County IDR, Solid Waste Disposal (Montenay Project)
(LOC Banque Paribas) (12/01/10)**........................... NR/A1 4.150 11/07/95 2,200,000 2,200,000
Florida HFA Multi-Family Series 1986 B (Heritage Place II)
(GTY Lincoln National Bank) (12/01/08)**.................... NR/A1+ 4.250 11/07/95 4,800,000 4,800,000
----------
TOTAL FLORIDA 7,000,000
----------
GEORGIA - 4.8%
Burke County Development Authority PCR (07/01/24)**............ VMIG1/A1 3.850 11/01/95 600,000 600,000
Burke County Development Authority PCR, Series 1992A,
(Oglethorpe Power Corp. Project) (LOC Credit Suisse)
(01/01/25)****(b) .......................................... P1/A1+/F1+ 3.800 02/21/96 2,500,000 2,500,000
DeKalb County Private Hospital Authority (LOC Trust
Company Bank) (03/01/24)**.................................. VMIG1/A1+ 3.850 11/07/95 1,700,000 1,700,000
Georgia Municipal Gas Authority (Transco Portfolio I
Project) (LOC Credit Suisse) (01/01/01)****................. VMIG1/NR 3.900 12/04/95 2,000,000 2,000,000
----------
TOTAL GEORGIA 6,800,000
----------
ILLINOIS - 9.0%
City of Fulton Solid Waste Disposal Facility Revenue Bonds,
Series A (CGE Fulton Project) (09/01/12)***................. NR/NR 4.000 11/02/95 5,000,000 5,000,000
Illinois Health Facilities Authority Revenue, Series E,
(Hospital Sisters Service) (MBIA) (SPA Morgan Guaranty
Trust) (12/01/15)**......................................... VMIG1/AAA 3.850 11/07/95 2,600,000 2,600,000
4
</TABLE>
<PAGE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (continued)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- --------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
ILLINOIS (CONTINUED)
Illinois State Revenue Anticipation Certificates............... MIG1/SP1+ 4.500% 04/12/96 $2,000,000 $ 2,006,944
Illinois State Toll Highway Authority, Series B (MBIA)
(LOC Societe Generale) (01/01/10)**(b) ..................... VMIG1/A1+/F1+ 3.850 11/07/95 3,100,000 3,100,000
----------
TOTAL ILLINOIS 12,706,944
----------
KANSAS - 1.4%
Burlington PCR (Kansas City Power & Light Project)
(LOC Toronto Dominion Bank) (10/01/17)****.................. NR/A1+ 3.800 02/08/96 1,000,000 1,000,000
Burlington PCR (Kansas City Power & Light Project)
(LOC Toronto Dominion Bank) (10/01/17)****.................. NR/A1+ 3.800 02/22/96 1,000,000 1,000,000
----------
TOTAL KANSAS 2,000,000
----------
KENTUCKY - 2.8%
Jefferson County PCR, Series A (Louisville Gas &
Electric Company Project) (09/01/17)****.................... VMIG1/A1+ 3.650 01/25/96 1,000,000 1,000,000
Jefferson County PCR, Series A (Louisville Gas &
Electric Company Project) (09/01/17)****.................... VMIG1/A1+ 3.900 01/25/96 100,000 100,000
Ohio County PCR, (Big Rivers Electric Corporation)
(LOC Chemical Bank) (10/01/15)**............................ NR/NR 4.450 11/07/95 2,900,000 2,900,000
----------
TOTAL KENTUCKY 4,000,000
----------
LOUISIANA - 5.4%
East Baton Rouge Parish PCR (Exxon Corp. Project)
(11/01/19)**................................................ P1/A1+ 4.000 11/01/95 2,000,000 2,000,000
Louisiana State GO Bonds, Series A (LOC Credit
Local de France) (07/01/03)****............................. VMIG1/A1+ 3.600 02/07/96 5,550,000 5,550,000
----------
TOTAL LOUISIANA 7,550,000
----------
MASSACHUSETTS - 3.6%
Commonwealth of Massachusetts GO Notes, Series A(b) ........... MIG1/SP1/F1 4.250 06/12/96 5,000,000 5,023,714
----------
MINNESOTA - 2.2%
Rochester Health Care Facilities Revenue, Series C (Mayo
Foundation/Mayo Medical Center Project) (11/15/21)****...... NR/A1+ 3.600 02/08/96 2,100,000 2,100,000
Rochester Health Care Facilities Revenue, Series B (Mayo
Foundation/Mayo Medical Center Project) (11/15/19)****...... NR/A1+ 3.600 02/12/96 1,000,000 1,000,000
----------
TOTAL MINNESOTA 3,100,000
----------
NEW YORK - 8.0%
New York City Municipal Water Finance Authority, Series C
(SPA FGIC) (06/15/22)**..................................... VMIG1/A1+ 4.000 11/01/95 1,500,000 1,500,000
New York City Variable Series GO Bonds, Subseries B-2 (MBIA)
(08/15/03)**................................................ VMIG1/A1+ 4.000 11/01/95 400,000 400,000
New York State Energy Research Development Authority PCR
(New York Electric & Gas Corp.) (LOC Morgan Guaranty
Trust) (06/01/29)**......................................... VMIG1/A1+ 3.600 11/01/95 800,000 800,000
New York State Job Development Authority, Series A-1--A-42
(State GTD) (03/01/05)**.................................... VMIG1/NR 4.050 11/01/95 800,000 800,000
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (continued)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- --------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
NEW YORK (CONTINUED)
New York State Job Development Authority, Series B-1--
B-21 (State GTD) (03/01/05)**............................... VMIG1/NR 4.050% 11/01/95 $1,700,000 $ 1,700,000
Suffolk County Water Authority Variable BANS
(SPA Bank of Nova Scotia) (12/06/99)**...................... VMIG1/NR 3.850 11/07/95 5,000,000 5,000,000
Westchester County TANS........................................ NR/NR 5.000 12/14/95 1,000,000 1,000,570
----------
TOTAL NEW YORK 11,200,570
----------
NORTH CAROLINA - 10.3%
Charlotte Airport Refunding Revenue Bonds, Series A (MBIA)
(SPA Industrial Bank of Japan, Ltd.) (07/01/16)**........... VMIG1/A1+ 3.850 11/07/95 4,200,000 4,200,000
Lenoir County PCR TENR #60, Series 1983 (Texasgulf, Inc.
Project) (LOC Bankers Trust Co.) (12/01/03)**............... Aa2/NR 4.200 11/07/95 1,000,000 1,000,000
North Carolina Eastern Municipal Power Agency, Series B
(LOC Morgan Guaranty Trust & Union Bank of Switzerland)
(01/01/26)****.............................................. NR/A1+ 3.500 12/06/95 2,700,000 2,700,000
North Carolina Eastern Municipal Power Agency, Series B
(LOC Morgan Guaranty Trust & Union Bank of Switzerland)
(01/01/26)****.............................................. NR/A1+ 3.650 02/13/96 2,200,000 2,200,000
North Carolina Eastern Municipal Power Agency, Series B
(LOC Morgan Guaranty Trust & Union Bank of Switzerland)
(01/01/26)****.............................................. NR/A1+ 3.800 02/14/96 3,000,000 3,000,000
North Carolina State Medical Care Community (Carol Woods
Project) (LOC Bank of Scotland) (04/01/21)**................ VMIG1/NR 4.050 11/01/95 600,000 600,000
Wake County Industrial Facilities & Pollution Control
Financing Authority (Carolina Power & Light Co. Project)
(LOC Sumitomo Bank, Ltd.) (03/01/17)**...................... NR/P1 3.950 11/01/95 800,000 800,000
----------
TOTAL NORTH CAROLINA 14,500,000
----------
NORTH DAKOTA - 2.8%
North Dakota State HFA Home Mortgage Bonds, Series C .......... VMIG1/NR 3.700 12/01/95 2,000,000 2,000,000
North Dakota State HFA Home Mortgage Bonds, Series D .......... VMIG1/NR 3.950 05/01/96 2,000,000 2,000,000
----------
TOTAL NORTH DAKOTA 4,000,000
----------
OHIO - 0.6%
Ohio State Student Loan Funding Corp., Series A-2
(LOC National Westminster Bank plc) (01/01/07)**............ VMIG1/NR 4.050 11/07/95 900,000 900,000
----------
PENNSYLVANIA - 6.9%
Berks County IDA (Sixth & Penn Street Project) (LOC
Meridian Bank) (11/23/03)**................................. VMIG1/NR 3.950 11/07/95 1,460,000 1,460,000
Delaware Valley Regional Financing (LOC Marine Midland
Bank, Hong Kong & Shanghai Bank) (08/01/16)**............... VMIG1/A1 4.050 11/07/95 2,700,000 2,700,000
Pennsylvania Energy Development Authority, Series 1986
Development Energy Revenue Bonds (Ebensburg Project)
(LOC Swiss Bank Corp.) (12/01/11)**......................... Aa1/NR 4.000 11/07/95 1,450,000 1,450,000
Montgomery County Industrial Development Authority
(06/01/29)****.............................................. P1/A1+ 3.500 11/08/95 4,120,000 4,120,000
----------
TOTAL PENNSYLVANIA 9,730,000
----------
See accompanying notes to financial statements.
</TABLE>
6
<PAGE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (continued)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- --------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
SOUTH CAROLINA - 2.1%
Charleston County School District TANS......................... NR/NR 4.500% 04/15/96 $3,000,000 $ 3,009,858
------------
TENNESSEE - 0.6%
Clarksville Public Authority Pooled Financing, Series 1990
(MBIA) (SBPA Credit Suisse) (07/01/13)**.................... VMIG1/A1+ 3.850 11/07/95 800,000 800,000
------------
TEXAS - 22.2%
Brazos River Harbor Navigation District, Series B
(Dow Chemical Co. Project) (10/01/99)****................... P1/NR 4.150 11/08/95 2,900,000 2,900,000
Brazos River Harbor Navigation District, Series A
(Dow Chemical Co. Project) (09/01/00)****................... P1/NR 3.550 12/07/95 2,100,000 2,100,000
Harris County Health Facilities Development Corp.,
Series B (Memorial Hospital System) (LOC Societe
Generale) (06/01/24)****.................................... VMIG1/NR 3.900 01/17/96 2,400,000 2,400,000
Harris County HFC MFHR (Idlewood Park Project) (GTD New
England Mutual Life Insurance Co.) (06/01/05)**............. NR/A1 4.250 11/07/95 2,750,000 2,750,000
Harris County Industrial Development Corp. PCR
(Exxon Corp.) (03/01/24)**.................................. NR/A1+ 4.000 11/01/95 3,300,000 3,300,000
Harris County Industrial Development Corp. PCR
(Exxon Corp.) (03/01/24)**.................................. NR/A1+ 4.000 11/01/95 1,000,000 1,000,000
North Central Texas Health Facilities Development Corp.
(Presbyterian Medical Center Project) (MBIA)
(SPA Nationsbank of Texas) (12/01/15)**..................... VMIG1/A1 3.900 11/01/95 400,000 400,000
North Texas Higher Education Authority, Inc., Student Loan
Revenue (LOC Fuji Bank, Ltd.) (12/01/05)**.................. VMIG1/NR 4.150 11/07/95 1,400,000 1,400,000
Panhandle Plains Higher Education Authority, Inc., Student
Loan Revenue, Series A (LOC SLMA) (06/01/21)**.............. VMIG1/NR 4.000 11/07/95 5,000,000 5,000,000
San Antonio Electric & Gas Revenue (FGIC)
(02/01/12)****.............................................. P1/A1+ 3.800 02/08/96 4,000,000 4,000,000
State of Texas TRANS, Series A(b) ............................. MIG1/SP1+/F1+ 4.750 08/30/96 6,000,000 6,036,452
------------
TOTAL TEXAS 31,286,452
------------
WISCONSIN - 2.2%
Wisconsin State Operating Notes................................ MIG1/SP1+ 4.500 06/17/96 3,000,000 3,016,314
------------
WYOMING - 1.7%
Lincoln County PCR, Series A (Exxon Corporation Project-A)
(11/01/14)**................................................ P1/A1+ 4.000 11/01/95 400,000 400,000
Lincoln County PCR (Pacificorp Project) (LOC Union Bank
of Switzerland) (01/01/16)****.............................. VMIG1/A1+ 3.600 02/07/96 2,000,000 2,000,000
------------
TOTAL WYOMING 2,400,000
------------
TOTAL INVESTMENTS - 99.3% (COST 139,823,852)+ ........................................................................ $139,823,852
============
*,**,***,****,+,(b) See Footnotes to Portfolios
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
THE TREASURER'S FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1995
<TABLE>
<CAPTION>
YIELD TO
MATURITY
AT TIME OF MATURITY PRINCIPAL VALUE
PURCHASE DATE AMOUNT (NOTE 1A)
---------- -------- --------- ---------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT ISSUES - 54.3%
U.S. Treasury Bills.......................................................... 5.426% 11/30/95 $ 7,800,000 $ 7,766,824
U.S. Treasury Bills++........................................................ 5.348 12/21/95 7,500,000 7,445,781
U.S. Treasury Bills.......................................................... 5.374 01/04/96 16,500,000 16,346,000
U.S. Treasury Bills++........................................................ 5.572 01/11/96 10,000,000 9,894,486
U.S. Treasury Notes, 7.875%.................................................. 5.520 02/15/96 10,000,000 10,065,067
----------
TOTAL U.S. GOVERNMENT ISSUES ....................................................................................... 51,518,158
----------
REPURCHASE AGREEMENTS - 45.6%
Bear Stearns & Co., Inc. dated 10/31/95...................................... 5.900 11/01/95 17,261,686 17,261,686
(Proceeds at maturity $17,264,515)
collateralized by:
$4,125,000 U.S. Treasury Notes 6.250%, 02/15/03 vs. $4,198,466
$2,000,000 U.S. Treasury Notes 5.500%, 04/15/00 vs. $1,980,300
$6,481,000 U.S. Treasury Bonds 7.625%, 02/15/25 vs. $7,523,987
$3,065,000 U.S. Treasury Bonds 6.875%, 08/15/25 vs. $3,289,113
$405,000 U.S. Treasury Notes 5.750%, 09/30/97 vs. $406,013
Nesbitt Burns Securities Inc. dated 10/31/95................................. 5.850 11/01/95 10,000,000 10,000,000
(Proceeds at maturity $10,001,625)
collateralized by:
$9,725,000 U.S. Treasury Notes 7.250%, 11/15/96 vs. $10,211,250
Nomura Securities International Inc. dated 10/31/95.......................... 5.875 11/01/95 16,000,000 16,000,000
(Proceeds at maturity $16,002,611)
collateralized by:
$16,025,000 U.S. Treasury Notes 6.625%, 03/31/97 vs. $16,325,469
-----------
TOTAL REPURCHASE AGREEMENTS ........................................................................................ 43,261,686
-----------
TOTAL INVESTMENTS 99.9% (COST 94,779,844)+ ......................................................................... $94,779,844
===========
+ See Footnotes to Portfolios
++ Securities on loan to Bear Stearns & Co.; collateralized by U.S. Government
securities at a market value of $17,919,682 as of October 31, 1995.
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
THE TREASURER'S FUND
FOOTNOTES TO PORTFOLIOS
*CREDIT RATINGS GIVEN BY STANDARD AND POOR'S CORPORATION & MOODY'S INVESTORS
SERVICE INC. (UNAUDITED)
<TABLE>
<CAPTION>
STANDARD & POOR'S MOODY'S
----------------- -----------
<S> <C> <C>
A1 P1 Instrument of the highest quality.
AAA Aaa Instrument judged to be of the best quality and carrying the smallest amount of
investment risk.
AA Aa Instrument judged to be of high quality by all standards.
SP1 MIG1/VMIG1 Instrument judged to be of the best quality with strong protection.
SP2 MIG2/VMIG2 Instrument judged to be of high quality with ample protection.
NR NR Not Rated. In the opinion of the Investment Advisor, instrument judged to be of comparable
investment quality to rated securities which may be purchased by the Portfolios.
</TABLE>
(A) Rated D1 by Duff & Phelps, Inc. (highest quality). (unaudited)
(B) Rated F1 by Fitch Investors Service, Inc. (highest quality). (unaudited)
Items which possess the strongest investment attributes of their category
are given that letter rating followed by a number. Duff & Phelps, Inc., Fitch
Investors Service, Inc. and Standard & Poor's ratings may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.
U.S. Government Issues have an assumed rating of AAA/Aaa.
ABBREVIATIONS USED IN THIS STATEMENT:
<TABLE>
<CAPTION>
<S> <C>
ACES................................Adjustable Convertible Extendable Securities
BANS................................Bond Anticipation Notes
FGIC ...............................Insured as to principal and interest by the Financial Guaranty Insurance Corp.
FHLMC...............................Federal Home Loan Mortgage Corporation
FNMA................................Federal National Mortgage Association
GO..................................General Obligation
GTD ................................Guaranteed(1)
GTY ................................Guaranty(1)
HFA ................................Housing Finance Agency
HFAR ...............................Health Facilities Authority Revenue
HFC ................................Housing Finance Corporation
IDA ................................Industrial Development Authority
IDR ................................Industrial Development Revenue
LOC.................................Letter of Credit(1)
MBIA ...............................Insured as to principal and interest by the Municipal Bond Insurance Association
MFHR ...............................Multi-Family Housing Revenue
PCR ................................Pollution Control Revenue
SBPA ...............................Stand-by Purchase Agreement(1)
SLMA................................Student Loan Marketing Association
STRIPS .............................Prestripped zero coupon bond that is a direct obligation of the U.S. Treasury
SPA ................................Securities Purchase Agreement(1)
TANS................................Tax Anticipation Notes
TRANS...............................Tax and Revenue Anticipation Notes
TENR ...............................Tax Exempt Note Rate
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
THE TREASURER'S FUND
FOOTNOTES TO PORTFOLIOS (CONTINUED)
(1) Institutions shown in parenthesis have entered into credit support
agreements with the issuer.
(2) Institutions shown in parenthesis are the issuers of the participation
interests of those specific holdings.
(3) Coupon resets monthly. The interest rate is based upon the Prime rate
minus 2.25%.
(4) Coupon resets monthly. The interest rate is based upon the Prime rate
minus 2%.
(5) Coupon resets quarterly. The interest rate is based upon the Prime rate
minus 2%.
(6) Coupon resets quarterly. The interest rate is based upon the Prime rate
minus 2.375%.
(7) Coupon resets weekly at the bond equivalent yield of the 91 day Treasury
Bill plus 22 basis points.
** Variable/Floating Rate Demand Note. "Maturity Date" shown is next exercise
date of demand feature and "Yield to Maturity at Time of Purchase"/
"Current Coupon" is the rate in effect on October 31, 1995. Date in
parenthesis is the final maturity date of the issue.
*** Adjustable Rate Security. "Maturity Date" shown is next coupon reset date
and "Yield to Maturity at Time of Purchase" / "Current Coupon" is the rate
in effect on October 31, 1995. Date in parenthesis is the final maturity
date of the issue.
**** Tax-Free Commercial Paper. Date in parenthesis is the final maturity of an
issue which has been remarketed in short-term interest periods ending on
date shown in maturity date column.
+ Cost basis for book and tax purposes is substantially the same.
INVESTMENT PERCENTAGES SHOWN ARE CALCULATED AS A PERCENTAGE OF NET ASSETS.
See accompanying notes to financial statements.
10
<PAGE>
THE TREASURER'S FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
<TABLE>
<CAPTION>
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments, in securities, at value (identified cost--$168,881,819*,
$139,823,852, and $94,779,844*, respectively)................................ $168,881,819 $139,823,852 $ 94,779,844
Cash........................................................................... 161,659 406,763 29,197
Interest receivable............................................................ 372,149 836,976 173,981
Receivable for fund shares sold................................................ 4,583 -- --
Paydowns receivable............................................................ 268,917 -- 260
Other assets................................................................... 4,761 3,738 66,868
------------ ------------ ------------
Total assets............................................................. 169,693,888 141,071,329 95,050,150
------------ ------------ ------------
LIABILITIES:
Dividend payable............................................................... 264,889 142,863 143,443
Payable for fund shares redeemed............................................... 38,061 20,768 --
Advisory fee payable (note 2).................................................. 42,033 36,825 23,912
Administrative services fee payable (note 2)................................... 14,011 12,275 7,971
Fund accounting and shareholder servicing fees payable (note 2)................ 4,670 4,735 7,009
Accrued expenses payable and other liabilities................................. 32,731 28,274 33,515
------------ ------------ ------------
Total liabilities........................................................ 396,395 245,740 215,850
------------ ------------ ------------
NET ASSETS .................................................................... $169,297,493 $140,825,589 $ 94,834,300
============ ============ ============
NET ASSETS CONSIST OF:
Shares of beneficial interest outstanding (par value of $0.001 per share);
2,000,000,000 shares authorized per Portfolio (note 3)....................... $ 169,520 $ 140,888 $ 94,834
Additional paid-in capital..................................................... 169,350,977 140,748,643 94,739,466
Undistributed net investment income............................................ -- 3,430 --
Distributions in excess of net investment income............................... (11,680) -- --
Accumulated net realized loss on securities.................................... (211,324) (67,372) --
------------ ------------ ------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES ................................... $169,297,493 $140,825,589 $ 94,834,300
============ ============ ============
SHARES OF BENEFICIAL INTEREST OUTSTANDING ..................................... 169,520,497 140,888,022 94,834,300
============ ============ ============
NET ASSET VALUE PER SHARE OUTSTANDING ......................................... $1.00 $1.00 $1.00
===== ===== =====
* Includes Repurchase Agreements of $52,471,546 and $43,261,686 for the Domestic
Prime Money Market Portfolio and U.S. Treasury Money Market Portfolio,
respectively.
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE TREASURER'S FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1995
<TABLE>
<CAPTION>
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ -------------
<S> <C> <C> <C>
INTEREST INCOME ............................................................... $8,945,417 $5,211,262 $5,810,174
---------- ---------- ----------
EXPENSES:
Advisory (note 2) ........................................................... 458,599 403,955 307,534
Administrative services (note 2)............................................. 152,866 134,652 102,517
Interest (note 8)............................................................ 26,354 -- --
Ratings...................................................................... -- -- 42,250
Custody...................................................................... 35,349 33,854 29,447
Shareholder services (note 2) ............................................... 27,819 23,108 14,291
Fund accounting (note 2)..................................................... 31,779 35,658 28,667
Auditing..................................................................... 25,000 25,000 25,000
Registration................................................................. 7,445 9,650 3,983
Reports to shareholders...................................................... 12,340 10,013 2,866
Legal........................................................................ 12,923 10,957 3,389
Directors' fees and expenses................................................. 14,500 14,523 14,500
Amortization of organization expense......................................... -- -- 6,425
Miscellaneous................................................................ 1,483 1,784 1,684
---------- ---------- ----------
806,457 703,154 582,553
Less--Fund expenses waived by Administrator (note 2)............................ (11,182) (8,868) (4,251)
---------- ---------- ----------
Total expenses ................................................................ 795,275 694,286 578,302
---------- ---------- ----------
NET INVESTMENT INCOME ......................................................... 8,150,142 4,516,976 5,231,872
NET REALIZED GAIN (LOSS) ON SECURITIES ........................................ (474,237) (2,775) 30,797
---------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .......................... $7,675,905 $4,514,201 $5,262,669
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE TREASURER'S FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
-------------------------- -------------------------- ------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1995 1994 1995 1994
------------- ---------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income..................... $ 8,150,142 $ 5,330,056 $ 4,516,976 $ 3,196,461 $ 5,231,872 $ 5,543,045
Net realized gain (loss) on securities
(note 9) (474,237) 9,118 (2,775) (1,391) 30,797 32,925
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations.............................. 7,675,905 5,339,174 4,514,201 3,195,070 5,262,669 5,575,970
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
Net investment income (note 1C) .......... (8,150,142) (5,330,056) (4,516,976) (3,195,070) (5,231,872) (5,543,045)
In excess of net investment income........ (11,680) -- -- -- -- --
Net realized gain on securities .......... -- (9,118) -- -- (30,797) (32,925)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS PAID TO SHAREHOLDERS .. (8,161,822) (5,339,174) (4,516,976) (3,195,070) (5,262,669) (5,575,970)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets from
capital share transactions (note 3)..... 25,776,580 (1,276,595) 6,877,356 16,199,684 (43,370,462) (85,866,292)
------------ ------------ ------------ ------------ ------------ ------------
CONTRIBUTIONS BY AFFILIATE (NOTE 9) ........ 262,913 -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .... 25,553,576 (1,276,595) 6,874,581 16,199,684 (43,370,462) (85,866,292)
NET ASSETS
Beginning of period....................... 143,743,917 145,020,512 133,951,008 117,751,324 138,204,762 224,071,054
------------ ------------ ------------ ------------ ------------ ------------
End of period* ........................... $169,297,493 $143,743,917 $140,825,589 $133,951,008 $ 94,834,300 $138,204,762
============ ============ ============ ============ ============ ============
</TABLE>
* Accumulated net investment income for the Tax Exempt Money Market Portfolio is
$3,430 and $3,430 for 1995 and 1994, respectively.
13
<PAGE>
THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1995
1. The Treasurer's Fund, Inc. (the "Fund") is an open-end, diversified
management investment company registered under the Investment Company Act of
1940, as amended, (the "Act"). The Fund currently consists of six separately
managed portfolios: U.S. Treasury Money Market Portfolio, Domestic Prime
Money Market Portfolio, Global Money Market Portfolio, Tax Exempt Money
Market Portfolio, Limited Term Portfolio and Tax Exempt Limited Term
Portfolio (collectively, the "Portfolios"). Of these, the U.S. Treasury Money
Market Portfolio, the Domestic Prime Money Market Portfolio and the Tax
Exempt Money Market Portfolio have commenced operations. The following is a
summary of significant accounting policies consistently followed by the Fund
in preparation of its financial statements:
(A) The Domestic Prime Money Market Portfolio, the Tax Exempt Money
Market Portfolio and the U.S. Treasury Money Market Portfolio value
all portfolio securities by the amortized cost method which
approximates market value in accordance with Rule 2a-7 under the
Investment Company Act of 1940, as amended.
(B) It is the Fund's policy to comply with the requirements of the
Internal Revenue Code (the "Code") applicable to regulated
investment companies and to distribute all of its "investment
company taxable income," as defined in the Code, and net capital
gains, if any, to its shareholders. Therefore, no Federal income tax
provision is required. The Fund intends to treat each Portfolio as a
separate entity taxable as a corporation for Federal income tax
purposes and to have each Portfolio qualify and elect to be taxed as
a "regulated investment company" under Subchapter M of the Internal
Revenue Code.
(C) Net investment income, including short-term capital gains, is
declared as dividends daily and paid monthly; however, if an
investor's shares are redeemed during a month, accrued but unpaid
dividends are paid with the redemption proceeds. Dividends are
payable to shareholders of record at the time of declaration.
(D) Investment 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 the amortization of
discount or premium, is recorded as earned. When-issued securities
are recorded on the date on which the priced transaction
confirmation is issued.
(E) Certain administrative expenses are common to, and allocated among,
the Portfolios. Such allocations are made on the basis of each
Portfolio's average net assets or other criteria directly affecting
the expenses.
2. The Fund retains Gabelli-O'Connor Fixed Income Mutual Funds Management Co.
("Gabelli-O'Connor") to act as Investment Advisor and Furman Selz
Incorporated ( "Furman Selz" ) to act as Administrator for the Fund.
Gabelli-O'Connor supervises all aspects of the Fund's operations and provides
investment advice and portfolio management services to the Fund. Subject to
the supervision of the Fund's Board of Directors, the Advisor makes the
Fund's day-to-day investment decisions, arranges for the execution of
portfolio transactions and generally manages the Fund's investments. The
Advisor also provides supervisory personnel who are responsible for
supervising the performance of administrative services, accounting and
related services, net asset value and yield calculations, reports to and
filings with regulatory authorities and services relating to such functions.
However, the Administrator provides personnel to perform the operational
components of such services.
Pursuant to the Administrative Services Agreement with each of the
Portfolios, Furman Selz provides all management and administrative services
necessary for the Fund, other than those provided by the Advisor, subject to
the supervision of the Fund's Board of Directors.
14
<PAGE>
THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 1995
As compensation for their respective services, Gabelli-O'Connor and Furman
Selz are entitled to monthly fees with respect to each Portfolio.
Gabelli-O'Connor earns fees at the following annualized rates:
---------------------------------------------------------
AVERAGE DAILY VALUE OF GABELLI-
NET ASSETS OF EACH PORTFOLIO O'CONNOR
---------------------------------------------------------
U.S. Treasury Money Market Portfolio 0.30%
Domestic Prime Money Market Portfolio 0.30%
Money Market Plus Portfolio 0.30%
Tax Exempt Money Market Portfolio 0.30%
Limited Term Portfolio 0.45%
Tax Exempt Limited Term Portfolio 0.45%
---------------------------------------------------------
For the services rendered to the Fund by the Administrator, the Fund pays the
Administrator a fee, computed daily and payable monthly, in accordance with
the following schedule: (i) 0.10% of the first $500 million of aggregate
average daily net assets of the Fund and, (ii) 0.065% of the next $250
million of aggregate average daily net assets of the Fund, (iii) 0.055% of
the next $250 million of aggregate average daily net assets of the Fund, and
(iv) 0.050% of all aggregate average daily net assets of the Fund over $1
billion.
The Administrator also provides the Fund with all accounting related
services. For the fund accounting services provided, the Administrator is
paid a fee of $2,500 plus out of pocket expenses per Portfolio per month.
For the year ended October 31, 1995, Gabelli-O'Connor was entitled to fees of
$458,599, $403,955 and $307,534, respectively, from the Domestic Prime Money
Market Portfolio, the Tax Exempt Money Market Portfolio and the U.S. Treasury
Money Market Portfolio. For fund accounting and administrative servicing fees
during this period, Furman Selz received $31,779 and $152,866, respectively,
from the Domestic Prime Money Market Portfolio, $35,658 and $134,652,
respectively, from the Tax Exempt Money Market Portfolio and $28,667 and
$102,517, respectively, from the US. Treasury Money Market Portfolio.
Furman Selz acts as the Fund's transfer and dividend disbursing agent. The
Fund compensates Furman Selz for providing personnel and facilities to
perform transfer agency related services for the Fund at a rate intended not
to exceed the cost of providing such services. During the year ended October
31, 1995, Furman Selz was entitled to and voluntarily waived fees of $11,182
for the Domestic Prime Money Market Portfolio, $8,868 for the Tax Exempt
Money Market Portfolio and $4,251 for the U.S. Treasury Money Market
Portfolio.
The Fund has adopted a distribution and service plan (the "Plan" ) pursuant
to Rule 12b-1 under the Investment Company Act of 1940 for each Portfolio of
the Fund. There are no fees or expenses chargeable to the Fund under the Plan
and the Fund's Board of Directors has adopted the Plan in case certain
expenses of the Fund might be considered to constitute indirect payment by
the Fund of distribution expenses. GOC Fund Distributors, Inc. (the
"Distributor") serves as the exclusive Distributor of the shares of each
Portfolio pursuant to its Distribution Agreement with the Fund.
The Advisor has agreed to reimburse each Portfolio for its expenses
(exclusive of interest, taxes, brokerage, and extraordinary expenses) which
in any year exceed the lesser of (i) 1.50% of the Portfolio's average annual
net assets or (ii) the limits on investment company expenses prescribed by
any state in which the Portfolio's shares are qualified for sale. From time
to time, the Advisor may voluntarily assume certain expenses of any Portfolio
of the Fund as noted above. No such reimbursement was required during the
year ended October 31, 1995, for any of the Portfolios.
3. At October 31, 1995, there were twenty billion shares of capital stock,
having a par value of one tenth of one cent ($0.001) per share, authorized.
Each Portfolio has been allocated two billion shares of the authorized
capital stock. The balance of eight billion shares of capital stock may be
issued in an existing or newly created class by resolution of the Board of
Directors. Transactions in capital stock shares at $1.00 per share were a
follows:
15
<PAGE>
THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
--------------------------- ------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1995 1994 1995 1994
----------- ----------- ----------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Sold ....................................... 615,364,259 650,211,087 459,789,646 447,120,392 603,115,075 1,400,716,056
Issued in reinvestment of dividends ........ 7,815,023 5,064,961 4,303,751 3,068,356 4,838,090 5,457,529
----------- ----------- ----------- ----------- ----------- -----------
623,179,282 655,276,048 464,093,397 450,188,748 607,953,165 1,406,173,585
Redeemed ................................... (597,402,702) (656,552,643) (457,216,041) (433,989,064) (651,323,627)(1,492,039,877)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in shares ............ 25,776,580 (1,276,595) 6,877,356 16,199,684 (43,370,462) (85,866,292)
=========== =========== =========== =========== =========== ===========
</TABLE>
4. Each Portfolio, may engage in repurchase agreements, with respect to any
security in which that Portfolio is authorized to invest, with member banks
of the Federal Reserve System and with broker-dealers who are recognized as
primary dealers in U.S. government securities by the Federal Reserve Bank of
New York whose creditworthiness has been reviewed and found satisfactory by
the Fund's Board of Directors. The Portfolios will always receive securities
as collateral whose market value, including accrued interest, will be at
least equal to 100% of the dollar amount invested by the Portfolio in each
agreement, and the Portfolio will make 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 Portfolios maintain the right to sell the
underlying securities at market value and may claim any resulting loss
against the seller.
5. In the pursuit of the Fund's minimum credit risk investment policy, each
Portfolio maintains a diversified portfolio of money market instruments, each
of which matures or resets to par in less than 397 days from date of purchase
and is determined to represent minimal credit risk in accordance with the
policies and procedures approved by the Fund's Directors. The ability of the
issuer of the instruments to meet their obligations may be affected by
economic developments in a specific industry, region or state.
6. At October 31, 1995, the Domestic Prime Money Market Portfolio had a net
capital loss carryforward for Federal Income tax purposes of $211,324
expiring in 2003. The Tax Exempt Money Market Portfolio had net capital loss
carryforwards for Federal income tax purposes of $67,372 with $2,775, $1,391,
$2,039, $7,802, $39,134 and $14,231, expiring in 2003, 2002, 2001, 1998, 1997
and 1996, respectively.
7. The Fund may lend its securities to broker-dealers and other institutional
investors. The Fund's policy is to receive collateral on each loan equal at
all times to the market value of the securities loan plus accrued interest.
The Fund may bear the risk of delay in receiving additional collateral or in
recovering the securities loaned or even a loss of rights in the collateral
should the borrower of the securities fail financially. The Fund receives
compensation for lending its securities in the form of fees or through the
reinvestment of collateral of any cash received as collateral. The Fund also
continues to receive interest on the securities loaned, and any gain or loss
in the market price of the securities loaned that may occur during the term
of the loan will be for the account of the Fund.
8. The Portfolios are permitted to enter into reverse repurchase agreements for
liquidity purposes or when it is able to purchase other securities which will
produce more income than the cost of the agreement. The Portfolios may enter
into reverse repurchase agreements only with those member banks of the
Federal Reserve System and broker-dealers who are recognized as primary
dealers in U.S. government securities by the Federal Reserve Bank of New York
whose creditworthiness has been reviewed and found satisfactory by the Fund's
Board of Directors. When engaging in reverse repurchase transactions, the
Portfolios will maintain, in a segregated account with its Custodian,
securities equal in value to those subject to the agreement.
9. During the year ended October 31, 1995, the Domestic Prime Money Market
Portfolio realized losses on the sale of certain securities. Pursuant to an
undertaking, losses in the amount of $262,913 were reimbursed to the Fund by
Gabelli-O'Connor. In addition, Gabelli-O'Connor currently has undertaken,
under circumstances, to reimburse the Domestic Prime Money Market Portfolio
with respect to realized losses on certain securities previously held in the
portfolio in an amount which would maintain its net asset value at $1 per
share.
16
<PAGE>
THE TREASURER'S FUND
FINANCIAL HIGHLIGHTS
Contained below is per share-operating performance data for a share of
beneficial interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information has
been derived from information provided in the Portfolio's financial statements.
<TABLE>
<CAPTION>
DOMESTIC PRIME
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED
---------------------------------------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992 1991
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
Investment Operations:
Investment income--net ............................... 0.054 0.035 0.028 0.038 0.061
Net realized gain (loss)
on investments...................................... (0.002) 0.000 0.000 0.000 0.001
-------- -------- -------- -------- --------
Total from Investment Operations.................... 0.052 0.035 0.028 0.038 0.062
-------- -------- -------- -------- --------
Distributions:
Dividends from investment
income--net ........................................ (0.054) (0.035) (0.028) (0.038) (0.061)
Dividends from net realized
gain on investments................................. -- -- -- -- (0.001)
-------- -------- -------- -------- --------
Total Distributions ................................ (0.054) (0.035) (0.028) (0.038) (0.062)
-------- -------- -------- -------- --------
Contributions from affiliate (note 9)................. 0.002 -- -- -- --
-------- -------- -------- -------- --------
Net asset value, end of period........................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
Total Investment Return................................. 5.50% 3.56% 2.90% 3.82% 6.42%
Ratios/Supplemental Data:
Ratio of expenses
to average net assets............................... 0.52%* 0.54% 0.62% 0.54% 0.88%
Ratio of interest expense to
average net assets.................................. 0.02% 0.13% -- -- 0.39%
Ratio of net investment income to
average net assets ................................. 5.33% 3.49% 2.82% 3.82% 6.12%
Decrease reflected in above expense
ratios due to undertakings by the
Advisor/Administrator .............................. 0.01% 0.01% 0.00% 0.01% 0.06%
Net Assets, end of
period (in thousands)............................... $169,297 $143,744 $145,021 $169,357 $205,282
</TABLE>
- -------------------
*See page 19
17
<PAGE>
THE TREASURER'S FUND
FINANCIAL HIGHLIGHTS
Contained below is per share-operating performance data for a share of
beneficial interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information has
been derived from information provided in the Portfolio's financial statements.
<TABLE>
<CAPTION>
TAX-EXEMPT
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED
---------------------------------------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year.................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Investment Operations:
Investment income--net................................ 0.034 0.022 0.021 0.031 0.047
Net realized gain (loss)
on investments...................................... 0.000 0.000 0.000 0.000 0.000
------- ------- ------- ------- -------
Total from Investment Operations ................... 0.034 0.022 0.021 0.031 0.047
------- ------- ------- ------- -------
Distributions:
Dividends from investment
income--net......................................... (0.034) (0.022) (0.021) (0.031) (0.047)
------- ------- ------- ------- -------
Total Distributions................................. (0.034) (0.022) (0.021) (0.031) (0.047)
------- ------- ------- ------- -------
Net asset value, end of period ....................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total Investment Return ................................ 3.42% 2.21% 2.16% 3.19% 4.83%
Ratios/Supplemental Data:
Ratio of expenses to
average net assets.................................. 0.52%* 0.53% 0.57% 0.58% 0.49%
Ratio of net investment income to
average net assets.................................. 3.35% 2.18% 2.15% 3.10% 4.71%
Decrease reflected in above expense
ratios due to undertakings by the
Advisor/Administrator............................... 0.01% 0.01% 0.00% 0.02% 0.09%
Net Assets, end of period (in thousands) ............. $140,826 $133,951 $117,751 $95,751 $86,486
</TABLE>
- ------------------
*See page 19
18
<PAGE>
THE TREASURER'S FUND
FINANCIAL HIGHLIGHTS
Contained below is per share-operating performance data for a share of
beneficial interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information has
been derived from information provided in the Portfolio's financial statements.
<TABLE>
<CAPTION>
U.S. TREASURY
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED
---------------------------------------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Investment Operations:
Investment income--net ............................ 0.051 0.033 0.026 0.034 0.055
Net realized gain (loss)
on investments................................... 0.000 0.000 0.000 0.002 0.002
------- ------- ------- ------- -------
Total from Investment Operations................. 0.051 0.033 0.026 0.036 0.057
------- ------- ------- ------- -------
Distributions:
Dividends from
investment income--net........................... (0.051) (0.033) (0.026) (0.034) (0.055)
Dividends from net realized
gain on investments.............................. -- -- -- (0.002) (0.002)
------- ------- ------- ------- -------
Total Distributions ............................. (0.051) (0.033) (0.026) (0.036) (0.057)
------- ------- ------- ------- -------
Net asset value, end of year ...................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total Investment Return ............................. 5.27% 3.31% 2.60% 3.68% 6.06%
Ratios/Supplemental Data:
Ratio of expenses to average
net assets....................................... 0.56%* 0.49% 0.47% 0.45% 0.49%
Ratio of net investment income
to average net assets .......................... 5.10% 3.07% 2.55% 3.38% 5.50%
Decrease reflected in above expense
ratios due to undertakings by the
Advisor/Administrator............................ 0.00% 0.00% 0.00% 0.01% 0.03%
Net Assets, end of
year (in thousands).............................. $94,834 $138,205 $224,071 $254,899 $281,259
- ----------
*Effective 1995, the ratios do not include a reduction of expenses for custodian
fee credits on cash balances maintained with the custodian. Including such
custodian fee credits, the expense ratios would be 0.50%, 0.50% and 0.54% for
Domestic Prime, Tax-Exempt and U.S. Treasury Money Market Funds, respectively.
</TABLE>
- --------------------------------------------------------------------------------
FEDERAL TAX STATUS OF DIVIDENDS (UNAUDITED)
This information is provided to you to meet regulatory requirements and no
current action on your part is needed.
For the fiscal year ended October 31, 1995, dividends paid to you in cash or
reinvested in the amount of $0.054 per share for Domestic Prime Money Market
Portfolio are taxable as ordinary dividend income. None of this amount qualifies
for the dividend received deduction available to corporations. 5.5% of the
income was derived from obligations of the U.S. Treasury.
For the fiscal year October 31, 1995, dividends in the amount of $0.034 per
share for the Tax Exempt Money Market Portfolio are exempt from Federal
taxation. They may not be exempt from state or local taxation. You should
contact your tax adviser as to the state and local status of the dividend you
have received.
For the fiscal year ended October 31, 1995, dividends paid to you in cash or
reinvested in the amount of $0.051 per share for the U.S Treasury Money Market
Portfolio are taxable as ordinary dividend income. None of this amount qualifies
for the dividend received deduction available to corporations. 61.4% of the
income was derived from obligations of the U.S. Treasury.
See accompanying notes to financial statements.
19
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Directors
The Treasurer's Fund, Inc.
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of The Treasurer's Fund, Inc.
(comprising the Domestic Prime Money Market, Tax Exempt Money Market, and U.S.
Treasury Money Market Portfolios) as of October 31, 1995, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated therein. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995 by correspondence with the custodian and others. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting The Treasure's Fund, Inc. at
October 31, 1995, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated periods, in conformity
with generally accepted accounting principles.
ERNST & YOUNG LLP
New York, New York
December 8, 1995
20
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
BOARD OF DIRECTORS
<S> <C>
THOMAS E. O'CONNOR* Chairman of the Board
FELIX J. CHRISTIANA (Retired) Senior Vice President, Dollar Dry Dock Savings Bank
MARY E. HAUCK (Retired) Senior Portfolio Manager, Gabelli-O'Connor Fixed Income
Mutual Funds Management Co.
ROBERT C. KOLODNY, M.D. Physician, author and lecturer, General Partner of KBS Partnership
WILLIAM A. MERRITT Financial Consultant/Mergers & Acquisitions
ANTHONY R. PUSTORINO Certified Public Accountant; Professor, Pace University
GARY L. ROUBOS Chairman of Dover Corp.
</TABLE>
* "Interested person" as that term is defined in the Investment Company Act
of 1940.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OFFICERS
<S> <C>
THOMAS E. O'CONNOR Chairman of the Board
RONALD S. EAKER President and Chief Investment Officer
HENLEY L. SMITH Vice President and Investment Officer
CARROLL COWARD Vice President and Investment Officer
JUDITH FABRIZI Secretary, Treasurer and Investment Officer
JOHN J. PILEGGI Assistant Treasurer
JOAN V. FIORE Assistant Secretary
SHERYL HIRSCHFELD Assistant Secretary
</TABLE>
