THE TREASURER'S FUND
One Corporate Center
Rye, New York 10580-1434
SEMI-ANNUAL REPORT
APRIL 30, 1998(a)
TO OUR SHAREHOLDERS,
We are pleased to present the semi-annual report of the Treasurer's Fund
for the six months ended April 30, 1998. The total net assets of the Treasurer's
Fund portfolios on April 30, 1998 (in millions) were:
WEIGHTED
NET ASSETS AVERAGE MATURITY
---------- ----------------
Domestic Prime Money Market Portfolio $277.0 41 days
Tax Exempt Money Market Portfolio 166.2 34 days
U.S. Treasury Money Market Portfolio 84.8 74 days
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.
COMMENTARY
As the 30-year Treasury bond rallies and moves to record low yields, we
are left to wonder "where to next?" The move in long term rates has been driven
by several factors. Namely, overseas uncertainty which has pushed the dollar up
to a seven year high (currently trading above 140 yen), absence of any
inflationary pressure, the continuation of debt restructuring by the Treasury
that creates a sense of scarcity and favorable comments from Federal Reserve
Board Chairman Greenspan. The market psychology, as usual, has changed quite
rapidly. Just a few weeks ago the reinstatement of a policy bias toward
tightening drove long term rates over 6.0%. The upcoming June 30 Federal Open
Market Committee (FOMC) meeting was a certainty for a policy move to raise
rates. Now with the yen in free fall, Russia on the brink and the ominous
thought of a possible devaluation by the Chinese, a major flight-to-quality move
has driven long term rates to record lows.
Why are we left to wonder "what next?" We believe the Fed will fight to
remain neutral given the continuation of strong domestic economic news. We
continue to read stories of worker shortages and signing bonuses becoming a new
tool for attracting skilled workers and recent college graduates. Service sector
job growth, retail sales and the housing market remain strong. Even Chairman
Greenspan himself states that the U.S. economy is the best he has seen in 50
years. We are left to conclude that even with overseas pressures, the Federal
Funds rate target will remain unchanged at 5.5% Of course, all bets are
- -------------------------------------
(a) The Fund's fiscal year ends October 31, 1998
<PAGE>
off if some sort of massive coordinated intervention (which is expected) does
not ssssmaterialize and the dollar makes a run to the 150s vs. the yen.
Where does that leave the short term market followers? Well, it is
certainly difficult to go long the short end of the Treasury curve and give up
yield to do so. But, we do believe that if you pick your spots carefully money
may be made even in an expensive market. Our strategy of investing in "spread
product" while trading the short term Treasuries' ranges to add to total rate of
return has not changed. At these levels, we naturally shift towards more spread
and wait for value to return, or at least until a new trading range emerges. We
believe the market is overbought and some correction from these highs is
anticipated but we continue to build in flexibility to the portfolio so we may
act in any direction.
INTERNET
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Funds, Inc., the
Gabelli Mutual Funds, IRAs, 401(k)s, quarterly reports, closing prices and other
current news. You can send us e-mail at [email protected].
CONCLUSION
WE THANK YOU FOR YOUR LOYALTY AND AS ALWAYS, PLEDGE OUR BEST EFFORTS ON YOUR
BEHALF AS WE SEEK TO PROVIDE YOU WITH COMPETITIVE RETURNS. PLEASE CALL US AT
1-800-GABELLI (1-800-422-3554) DURING THE BUSINESS DAY FOR FURTHER INFORMATION.
SINCERELY,
/s/Judith A. Raneri
---------------------
JUDITH A. RANERI
Portfolio Manager
JUNE 15, 1998
An investment in The Treasurer's Fund Portfolios are neither insured nor
guaranteed by the U.S. Government. There can be no assurance that the Fund will
maintain a stable $1 per share net asset value. The Fund's prospectus contains
more complete information, including fees and expenses. The prospectus should be
read carefully before you invest or send money. Yields will fluctuate. Past
performance is not predictive of future performance.
2
<PAGE>
<TABLE>
THE TREASURER'S FUND
DOMESTIC PRIME MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- APRIL 30, 1998 (UNAUDITED)
===========================================================================================================================
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
-------- -------- ------
<S> <C> <C> <C>
ASSET BACKED SECURITIES - 1.5%
$ 4,070,826 Westo Financial Owner Trust, Series 1997-D, 5.91%, 12/20/98 ............ A1+/P1 $ 4,073,895
------------
MEDIUM TERM AND SENIOR NOTES - 3.6%
10,000,000 Travelers Life & Annuity Funding Agreement, 5.65%, 04/15/99 ............ NR/NR 10,000,000
------------
COMMERCIAL PAPER - 25.0%
12,000,000 Bell Atlantic Financial Services, Inc., 5.51%, 05/05/98 ................ A1/P1 11,992,653
12,500,000 First Brands Commercial, Inc., 5.53%, 05/15/98 A1/P1 12,473,118
10,000,000 Louis Dreyfus Corp., 5.53%, 05/18/98 ................................... A1+/P1 9,973,886
10,000,000 Transamerica Corp., 5.50%, 06/01/98 .................................... A1/P1 9,952,639
5,000,000 First Chicago Capital Markets, Inc., 5.50%, 06/02/98 ................... A1/P1 4,975,556
10,000,000 Island Finance Puerto Rico, Inc., 5.53%, 06/03/98 ...................... A1/P1 9,949,308
10,000,000 Avnet, Inc., 5.51%, 06/15/98 to 06/16/98 ............................... A1/P1 9,930,360
-----------
TOTAL COMMERCIAL PAPER 69,247,520
-----------
ADJUSTABLE RATE SECURITIES - 5.1%
9,300,000 Health Insurance Plan of Greater New York, Series B, 5.60%,
05/06/98, Letter of Credit - Morgan Guaranty Trust, 07/01/16+ ........ A1+/NR 9,300,000
4,800,000 New Jersey Economic Development Authority, 5.69%, 04/30/98,10/01/21+ ... NR/NR 4,800,000
------------
TOTAL ADJUSTABLE RATE SECURITIES 14,100,000
------------
LOAN PARTICIPATIONS - 4.7%
13,000,000 Pacific Financial Asset Management, 5.63%, 05/06/98 .................... NR/NR 13,000,000
------------
U.S. GOVERNMENT AGENCY MORTGAGES - 20.2%
1,000,000 Federal Home Loan Bank, 5.65%, 05/04/98 ................................ 1,000,094
15,000,000 Federal Farm Credit Bank, 5.50%, 06/01/98 .............................. 15,000,000
5,000,000 Federal Farm Credit Bank, 5.46%, 07/01/98 .............................. 5,000,000
10,000,000 Federal Farm Credit Bank, 5.51%, 08/03/98 .............................. 10,000,000
10,000,000 Federal Home Loan Bank, 5.71%, 03/17/99 ................................ 10,000,000
5,000,000 Federal Home Loan Bank, 5.65%, 03/30/99 ................................ 5,000,000
5,000,000 Federal Home Loan Bank, 5.51%, 04/01/99 ................................ 4,998,853
5,000,000 Federal Home Loan Bank, 5.70%, 04/15/99 ................................ 4,997,012
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES ................................. 55,995,959
------------
REPURCHASE AGREEMENTS - 43.4%
25,000,000 BZW, dated 04/30/98, proceeds at maturity $25,003,785 (b) .............. 25,000,000
50,000,000 Citibank, dated 04/30/98, proceeds at maturity $50,007,639 (c) ......... 50,000,000
45,321,934 Bear Stearns & Co., Inc., dated 04/30/98, proceeds at maturity
$45,328,858.02 (d) 45,321,934
------------
TOTAL REPURCHASE AGREEMENTS 120,321,934
------------
TOTAL INVESTMENTS (Cost $286,739,308) (a) ............................................. 103.5% $286,739,308
PAYABLE TO MANAGER .................................................................... (0.0)% (66,944)
PAYABLE TO ADMINISTRATOR .............................................................. (0.0)% (21,686)
PAYABLE FOR SECURITIES PURCHASED ...................................................... (3.6)% (10,000,000)
DIVIDENDS PAYABLE ..................................................................... (0.1)% (357,369)
OTHER ASSETS AND LIABILITIES (NET) .................................................... 0.2% 666,123
------------
NET ASSETS (276,996,633 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) .................................... 100.0% $276,959,432
===== ============
COMPOSITION OF NET ASSETS
Paid-in-capital ....................................................................... $276,915,484
Undistributed net investment income ................................................... 13,572
Accumulated net realized gain on investments .......................................... 30,376
------------
NET ASSETS ............................................................................ $276,959,432
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE .............................. $1.00
=====
</TABLE>
+ Variable rate security. Maturity date reflects the next rate change.
(a) Aggregate cost for Federal tax purposes.
(b) Collateralized by U.S. Treasury Bond, 02/15/25, market value $25,705,344.
(c) Collateralized by U.S. Treasury Notes, 05/15/06, market value $51,001,564.
(d) Collateralized by U.S. Treasury Notes and STRIPS, 02/15/17 to 08/15/22,
market value $46,229,934.
* Credit ratings issued by Standard & Poor's Corporation and Moody's Investors
Services Inc. Standard & Poor's credit rating of A1 and Moody's credit rating of
P1 reflect instruments of the highest quality. Credit ratings of NR indicate
that the security is not rated. In the opinion of the Investment Adviser, such
instruments are judged to be of comparable investment quality to rated
securities which may be purchased by the Portfolios.
See accompanying notes to financial statements.
3
<PAGE>
<TABLE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- APRIL 30, 1998 (UNAUDITED)
===========================================================================================================================
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
-------- -------- ------
<S> <C> <C> <C>
SHORT TERM MUNICIPAL OBLIGATIONS - 99.6%
ALABAMA - 3.0%
$4,000,000 Huntsville Alabama Health Care Authority, Series A, 4.00%,
05/07/98, SPA - Amsouth Bank of Alabama, 06/01/27+ ..................... VMIG1/A1 $ 4,000,000
1,000,000 Huntsville Industrial Development Board, Avco Corporation Project,
Series 1982, 4.60%, 05/07/98, LOC - Bankers Trust, 11/01/99+ ........... Aa2/NR 1,000,000
-----------
TOTAL ALABAMA 5,000,000
-----------
ARIZONA - 4.5%
500,000 Arizona Health Facility, Pooled Loan Program, Series 1985, 4.10%,
05/07/98, FGIC Insured, SPA - Chemical Bank, 10/01/15+ ................. VMIG1/A1 500,000
5,000,000 Maricopa County Pollution Control, 4.05%, 05/07/98, 07/01/14+ ............ NR/P1 5,000,000
2,000,000 Maricopa County Pollution Control, 3.50%, 06/11/98 ....................... A1/P1 2,000,000
-----------
TOTAL ARIZONA ...................................................................... 7,500,000
-----------
COLORADO - 0.7%
1,175,000 Colorado Health Facilities Authority, Boulder Community Hospital
Project C, 4.10%, 05/07/98, MBIA Insured, SPA - Rabobank
Nederland, 10/01/14+ ................................................... VMIG1/A1+ 1,175,000
-----------
CONNECTICUT - 1.8%
3,000,000 Connecticut State Special Assessment Unemployment Compensation,
Series C, 3.90%, 07/01/98, FGIC Insured, 11/15/01+ ..................... VMIG1/A1+ 3,000,000
-----------
FLORIDA - 6.3%
2,910,000 Broward County Florida Housing Financial Authority, Multi-family
Housing Revenue, Lake Park Associates Limited Partnership,
4.05%, 05/07/98, 12/01/10+ ............................................. NR/A1 2,910,000
1,000,000 Dade County Health Facilities Authority, Miami Children's Hospital
Project, Series 1990, 4.30%, 05/01/98, LOC - Barnett
Bank of South Florida, 09/01/20+ ....................................... VMIG1/NR 1,000,000
4,500,000 Florida Gulf Coast University, 4.10%, 05/07/98, LOC - First Union
National Bank, 08/01/27+ ............................................... NR/A1 4,500,000
2,000,000 Lee County Industrial Development Authority, Health Care
Facilities Revenue, Var-Cypress Cove, 4.05%, 05/07/98, LOC -
Kredietbank N.V.,10/01/04+ ............................................. NR/VMIG1 2,000,000
-----------
TOTAL FLORIDA ....................................................................... 10,410,000
-----------
GEORGIA - 6.6%
1,615,000 Atlanta Georgia Water & Sewer Revenue, 5.00%, 01/01/99,
FGIC Insured ........................................................... Aaa/AAA 1,629,778
2,400,000 Burke County Development Authority, Georgia Power Company,
4.20%, 05/01/98, 07/01/24+ ............................................. VMIG1/A1 2,400,000
4,740,000 Burke County Development Authority, Ogelthorpe Power Corporation,
Series A, 4.00%, 05/07/98, FGIC Insured, SPA - Canadian Imperial
Bank, 01/01/16+ ........................................................ VMIG1/A1+ 4,740,000
1,700,000 DeKalb Private Hospital Authority, Egleston Children's Hospital,
Series A, 4.05%, 05/07/98, LOC - Trust Co. Bank, 03/01/24+ ............. VMIG1/A1+ 1,700,000
500,000 Hapeville Development Authority, Industrial Development Revenue,
Tend-Hapeville Hotel Limited, 4.25%, 05/01/98, LOC - Deutsche
Bank A.G., 11/01/15+ ................................................... VMIG1/A1+ 500,000
----------
TOTAL GEORGIA ....................................................................... 10,969,778
----------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1998 (UNAUDITED)
===========================================================================================================================
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
-------- -------- ------
<S> <C> <C> <C>
ILLINOIS - 4.5%
$2,600,000 Illinois Health Facilities Authority Revenue Updates, Hospital
Sisters Service, Series E, 4.125%, 05/07/98, MBIA Insured, SPA -
Morgan Guaranty Trust, 12/01/15+ ....................................... VMIG1/AAA $ 2,600,000
2,900,000 Illinois State Toll Highway Authority, Series B, 4.00%, 05/07/98,
MBIA Insured, LOC - Societe Generale, 01/01/10+ ....................... VMIG1/A1+ 2,900,000
2,000,000 Metropolitan Pier & Exposition Authority Illinois, 4.35%,
12/15/98, AMBAC Insured ................................................ Aaa/AA+ 2,007,226
----------
TOTAL ILLINOIS ...................................................................... 7,507,226
----------
INDIANA - 1.1%
1,835,000 Warrick County Indiana Environmental Impt Revenue, 4.65%, 05/01/98 ....... Aa2/AA 1,835,000
----------
KANSAS - 4.9%
5,150,000 Burlington Kansas, Pollution Control Revenue, 3.25%, 05/07/98,
LOC - Deutsche Bank A.G. ............................................... NR/A1+ 5,150,000
3,000,000 City of Burlington Kansas Pollution Control, 3.55%, 05/04/98 ............. NR/A1+ 3,000,000
----------
TOTAL KANSAS ......................................................................... 8,150,000
----------
KENTUCKY - 0.8%
1,255,000 Kentucky Development Finance Authority Pooled Loan Program,
Series A, 4.10%, 05/07/98, FGIC Insured, SPA - Landesbank
Hessen, 12/01/15+ ...................................................... VMIG1/A1+ 1,255,000
----------
LOUISIANA - 4.7%
5,000,000 East Baton Rouge Mortgage Financial Authority,
Series C-4, 4.50%, 07/02/98, 10/01/30+ ................................. VMIG1/Aaa 5,005,421
1,700,000 Louisiana State Offshore Term Authority, Deepwater Port Revenue
ACES, Loop Inc. 1st Stage, 4.15%, 05/01/98, LOC - Union Bank
of Switzerland, 09/01/06+ .............................................. VMIG1/NR 1,700,000
1,100,000 Parish of East Baton Rouge, Louisiana Pollution Control Exxon
Corporation, Series 1989, 4.20%, 05/01/98, 11/01/19+ ................... VMIG1/A1+ 1,100,000
----------
TOTAL LOUISIANA ...................................................................... 7,805,421
----------
MARYLAND - 0.7%
1,100,000 Northeast Maryland Waste Disposal Authority, Hartford County
Resource Recovery Revenue, 3.90%, 05/07/98, AMBAC Insured,
SPA - Credit Local de France, 01/01/08+ ................................ VMIG1/A1+ 1,100,000
----------
MASSACHUSETTS - 4.3%
6,300,000 Massachusetts State Health & Education Facilities Authority,
Var-Cap Assets Program, Series D, 4.15%, 05/01/98, MBIA Insured,
SPA - Credit Suisse, 01/01/35+ ......................................... VMIG1/A1+ 6,300,000
900,000 Massachusetts State Industrial Finance Agency, Pollution Control,
4.10%, 05/01/98, 10/01/22+ ............................................ VMIG1/A1 900,000
----------
TOTAL MASSACHUSETTS .................................................................. 7,200,000
----------
MICHIGAN - 6.8%
4,000,000 Michigan Higher Education Student Loan, Series XII B, 4.10%,
05/07/98, AMBAC Insured, SPA - Kredietbank N.V., 10/01/13+ ............. VMIG1/A1 4,000,000
1,500,000 Michigan Municipal Bond Authority Revenue,
Series B, 4.50%, 07/02/98 .............................................. NR/SP1+ 1,502,178
3,000,000 Michigan State Strategic Fund Pollution Control, 3.25%, 05/04/98 ......... P1/A1+ 3,000,000
1,400,000 Michigan Strategic Fund (Dow Chemical Company), 3.35%, 05/04/98 .......... P1/A1 1,400,000
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
<TABLE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1998 (UNAUDITED)
===========================================================================================================================
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
-------- -------- ------
<S> <C> <C> <C>
MICHIGAN (CONTINUED)
$1,400,000 Wayne Charter County Airport, Detroit Metropolitan County
Project, Series B, 4.05%, 05/07/98, LOC - Bayerische Landesbank,
10/01/16+ ............................................................... NR/A1+ $ 1,400,000
-----------
TOTAL MICHIGAN ...................................................................... 11,302,178
-----------
MINNESOTA - 4.6%
2,800,000 Rochester Minnesota Health Care, Mayo Foundation, Mayo Medical
Center Series C, 3.65%, 05/07/98 ........................................ NR/A1+ 2,800,000
2,500,000 Rochester Minnesota Health Care, Mayo Foundation, 3.60%, 07/22/98 ......... NR/A1+ 2,500,000
2,300,000 Rochester Minnesota Health Care, Mayo Foundation, 3.60%, 07/23/98 ......... NR/A1+ 2,300,000
-----------
TOTAL MINNESOTA ..................................................................... 7,600,000
-----------
MISSOURI - 1.5%
2,500,000 Missouri State Health & Educational Facilities Authority,
Christian Health Service, Series A, 4.05%, 05/07/98, LOC - Morgan
Guaranty Trust, 11/01/19+ ............................................... NR/A1+ 2,500,000
-----------
NEW JERSEY - 0.5%
800,000 New Jersey Economic Development Authority, Project C, 4.10%,
05/01/98, AMBAC Insured, SPA - Bank of New York, 11/01/25+ .............. VMIG1/A1+ 800,000
-----------
NEW MEXICO - 0.7%
1,200,000 Albuquerque New Mexico, Gross Receipts Lodgers Tax Revenue,
Series A, 4.05%, 05/07/98, LOC - Canadian Imperial Bank, 07/01/22+ ...... VMIG1/A1+ 1,200,000
-----------
NEW YORK - 1.3%
1,635,000 New York State Energy Research and Development, Series C, 4.05%,
05/01/98, LOC - Morgan Guaranty Trust, 06/01/29+ ........................ VMIG1/A1+ 1,635,000
600,000 State of New York Dormitory Authority, Beverwyck Inc. Project,
4.00%, 05/07/98, LOC - Banque Paribas, 07/01/25+ ........................ VMIG1/A1+ 600,000
-----------
TOTAL NEW YORK ...................................................................... 2,235,000
-----------
NORTH CAROLINA - 4.9%
5,000,000 Charlotte-Mecklenberg Hospital Authority, Series D, 4.05%,
05/07/98, 01/15/26+ ..................................................... VMIG1/A1+ 5,000,000
1,000,000 Lenoir County Pollution Control Facilities, Series 1983,
Texasgulf Inc. Project, 4.225%, 05/07/98, LOC - Bank of
Nova Scotia, 12/01/03+ .................................................. Aa2/NR 1,000,000
2,100,000 University of North Carolina at Chapel Hill Parking System Revenue Bond
Series 1997 C, 4.05%, 05/07/98, SPA - Nationsbank N.A., 05/15/27+ ....... VMIG1/A1+ 2,100,000
-----------
TOTAL NORTH CAROLINA ................................................................ 8,100,000
-----------
OHIO - 3.4%
4,725,000 Ohio State Highway Capital Improvements Series B, 4.00%, 05/01/98 ......... Aa1/AA+ 4,725,000
900,000 Ohio State Student Loan Funding Corporation, Series A-2, 4.10%,
05/07/98, LOC - National Westminister Bank PLC, 01/01/07+ ............... VMIG1/NR 900,000
-----------
TOTAL OHIO .......................................................................... 5,625,000
-----------
PENNSYLVANIA - 1.6%
1,300,000 Lehigh County, Pennsylvania General Purpose Authority,
Lehigh Valley Hospital, Series A, 4.15%, 05/01/98,
AMBAC Insured, SPA - Chase Manhattan Bank, 07/01/28+ .................... VMIG1/A1 1,300,000
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1998 (UNAUDITED)
===========================================================================================================================
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
-------- -------- ------
<S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$1,300,000 Pennsylvania Energy Development Authority, Ebensburg Project,
4.10%, 05/07/98, LOC - Swiss Bank Corp., 12/01/11+ ...................... Aa1/NR $ 1,300,000
-----------
TOTAL PENNSYLVANIA 2,600,000
-----------
SOUTH CAROLINA - 3.4%
2,600,000 South Carolina Educational Facilities Authority, Furman University
Project Series B, 4.05%, 05/07/98, MBIA Insured, SPA -
Wachovia Bank of South Carolina, 10/01/26+ .............................. VMIG1/AAA 2,600,000
3,000,000 South Carolina Jobs Economic Development Authority, Solid Waste
Recycling Santee River Rubber Project, 3.75%, 09/03/98, 12/15/14+ ....... NR/NR 3,000,000
-----------
TOTAL SOUTH CAROLINA ................................................................. 5,600,000
-----------
TENNESSEE - 2.5%
700,000 Clarksville Public Building Authority, Pooled Financing, Series
1990, 4.00%, 05/07/98, MBIA Insured, SPA - C.S. First Boston,
07/01/13+ ............................................................... VMIG1/A1+ 700,000
3,500,000 Tennessee State Board Anticipation Notes Series E, 3.95%,
05/07/98, SPA - Tennessee Consolidated Retirement Systems,
07/02/01+ ............................................................... VMIG1/A1+ 3,500,000
-----------
TOTAL TENNESSEE ............................................................................ 4,200,000
-----------
TEXAS - 8.8%
2,750,000 Harris County Texas Housing Financial Corporation, Idlewood Park
Development, Series A, 4.25%, 05/07/98, LOC - New England
Mutual Life, 06/01/05+ .................................................. NR/A1+ 2,750,000
4,000,000 Houston Texas Water & Sewer Revenue Note, 3.70%, 07/02/98 ................. P1/A1 4,000,000
1,300,000 North Central Texas Health Facility Development, Presbyterian
Medical Center Series D, 4.25%, 05/01/98, MBIA Insured, SPA -
Nationsbank of Texas, 12/01/15+ ......................................... VMIG1/A1+ 1,300,000
400,000 North Central Texas, Health Facilities, Presbyterian Medical
Center, Series C, 4.25%, 05/01/98, MBIA Insured, SPA -
Nationsbank of Texas, 12/01/15+ ......................................... VMIG1/A1+ 400,000
6,300,000 Texas State Tax & Revenue Anticipation Notes, Series A, 4.75%,
08/31/98 ................................................................ MIG1/SP1+ 6,318,750
-----------
TOTAL TEXAS .......................................................................... 14,768,750
-----------
UTAH - 4.2%
900,000 Utah State Board of Regents, Series B, 4.20%, 05/07/98,
AMBAC Insured, 11/01/13+ ................................................ VMIG1/A1+ 900,000
6,100,000 Utah State Series 1991 G, 5.50%, 07/01/98 ................................. Aaa/AAA 6,120,511
-----------
TOTAL UTAH ........................................................................... 7,020,511
-----------
WASHINGTON - 3.0%
5,000,000 Washington State Series 93A, 4.80%, 10/01/98 .............................. Aa1/AA+ 5,027,727
-----------
WISCONSIN - 1.2%
2,000,000 Wisconsin State Series E, 6.80%, 05/01/98 ................................. AA/Aa 2,000,000
-----------
WYOMING - 7.3%
3,000,000 Lincoln County Pollution Control Revenue, 3.50%, 05/05/98 ................. A1+/NR 3,000,000
2,800,000 Lincoln County Pollution Control Revenue, 3.60%, 06/10/98 ................. A1+/NR 2,800,000
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
<TABLE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1998 (UNAUDITED)
===========================================================================================================================
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
-------- -------- ------
<S> <C> <C> <C>
WYOMING (CONTINUED)
$5,500,000 Lincoln County Pollution Control Revenue, Pacificorp Project,
3.60%, 06/10/98 ...................................................... A1+/NR $ 5,500,000
800,000 Platte County, Tri-State Generator & Transmission Project, Series
1984-B, 4.30%, 05/01/98, LOC - Societe Generale, 07/01/14+ ........... P1/NR 800,000
------------
TOTAL WYOMING 12,100,000
------------
TOTAL SHORT TERM MUNICIPAL OBLIGATIONS 165,586,591
------------
TOTAL INVESTMENTS (Cost $165,586,591) (a) ............................................. 99.6% $165,586,591
PAYABLE TO MANAGER .................................................................... (0.0)% (42,545)
PAYABLE TO ADMINISTRATOR .............................................................. (0.0)% (13,782)
DIVIDENDS PAYABLE ..................................................................... (0.1)% (167,672 )
OTHER ASSETS AND LIABILITIES (NET) .................................................... 0.5% 861,083
---- -----------
NET ASSETS (166,274,950 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) ..................................... 100.0% $166,223,675
===== ============
COMPOSITION OF NET ASSETS
Paid-in-capital .................................................................................. $166,234,252
Undistributed net investment income .............................................................. 3,430
Accumulated net realized loss on investments ..................................................... (14,007)
------------
NET ASSETS ....................................................................................... $166,223,675
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ......................................... $1.00
=====
</TABLE>
- ------------------------------------------
+ Variable rate security. Maturity date reflects the next rate change date.
(a) Aggregate cost for Federal tax purposes.
ACES-Adjustable Convertible Extendable Securities, AMBAC - AMBAC Indemnity
Corporation, FGIC - Financial Guaranty Insurance Company, LOC - Letter of
Credit, MBIA - Municipal Bond Insurance Association, SPA - Standby
Purchase Agreement.
* Credit ratings issued by Standard & Poor's Corporation and Moody's
Investors Services Inc. Standard & Poor's credit rating of A1 and Moody's
credit rating of P1 reflect instruments of the highest quality. Credit
ratings of NR indicate that the security is not rated. In the opinion of
the Investment Adviser, such instruments are judged to be of comparable
investment quality to rated securities which may be purchased by the
Portfolios.
See accompanying notes to financial statements.
8
<PAGE>
<TABLE>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1998 (UNAUDITED)
===========================================================================================================================
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
-------- -------- ------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 64.4%
U.S. TREASURY BILLS -- 40.8%
$35,000,000 U.S. Treasury Bills, 4.99% to 5.01%, due 07/23/98 to 08/06/98 ........... $34,554,458
-----------
U.S. TREASURY NOTES -- 23.6%
20,000,000 U.S. Treasury Notes, 6.00%, 09/30/98 .................................... 20,045,768
-----------
TOTAL U.S. TREASURY OBLIGATIONS ......................................... 54,600,226
-----------
REPURCHASE AGREEMENTS -- 35.7%
2,316,778 Bear Stearns & Co., Inc., dated 04/30/98, proceeds at
maturity $2,317,773 (b) ............................................... 2,316,778
10,000,000 BZW, dated 04/30/98, proceeds at maturity $10,001,514 (c) ............... 10,000,000
18,000,000 Citibank, dated 04/30/98, proceeds at maturity $18,002,750 (d) .......... 18,000,000
-----------
TOTAL REPURCHASE AGREEMENTS ............................................. 30,316,778
-----------
TOTAL INVESTMENTS (Cost $84,917,004) (a) ............................................... 100.1% 84,917,004
PAYABLE TO MANAGER ..................................................................... (0.0)% (24,666)
PAYABLE TO ADMINISTRATOR ............................................................... (0.0)% (7,986)
DIVIDENDS PAYABLE ...................................................................... (0.2)% (159,055)
OTHER ASSETS AND LIABILITIES (NET) ..................................................... 0.1% 91,710
----- -----------
NET ASSETS (84,806,708 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) ...................................... 100.0% $84,817,007
===== ===========
COMPOSITION OF NET ASSETS
Paid-in-capital ........................................................................ $84,806,709
Accumulated net realized gain on investments ........................................... 10,298
-----------
NET ASSETS ............................................................................. $84,817,007
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ............................... $1.00
=====
</TABLE>
- --------------------------------------------------------
(a) Aggregate cost for Federal tax purposes.
(b) Collateralized by U.S. Treasury STRIPS, 02/15/19, market value $2,363,127.
(c) Collateralized by U.S. Treasury Bond, 02/15/25, market value $10,283,364.
(d) Collateralized by U.S. Treasury Notes, 03/31/00, market value $18,362,925.
See accompanying notes to financial statements.
9
<PAGE>
<TABLE>
THE TREASURER'S FUND
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
===========================================================================================================================
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest ...................................................... $ 7,546,578 $3,481,373 $2,593,957
----------- ---------- ----------
EXPENSES:
Investment advisory fees ...................................... 402,579 292,241 143,637
Administration fees ........................................... 132,510 96,261 47,246
Shareholder services fees ..................................... 60,146 20,409 10,395
Custodian fees ................................................ 31,427 25,176 11,267
Legal and audit fees .......................................... 22,578 18,229 13,607
Directors' fees ............................................... 13,124 6,496 1,268
Miscellaneous expenses ........................................ 44,326 31,465 14,072
----------- ---------- ----------
Total Expenses .............................................. 706,690 490,277 241,492
Custodian fee credits ......................................... -- (14,102) --
----------- ---------- ----------
TOTAL NET EXPENSES .......................................... 706,690 476,175 241,492
----------- ---------- ----------
NET INVESTMENT INCOME .......................................... 6,839,888 3,005,198 2,352,465
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................ (1,678) 250 18,479
----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........... $ 6,838,210 $3,005,448 $2,370,944
=========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
STATEMENT OF CHANGES IN NET ASSETS
===================================================================================================================================
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
------------------------- ------------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------------- ------------ -------------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income ........... $ 6,839,888 $ 13,759,453 $ 3,005,198 $ 5,549,927 $ 2,352,465 $ 4,920,996
Net realized gain (loss)
on investments ................ (1,678) 77,010 250 -- 18,479 70,988
------------- ------------ ------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations ... 6,838,210 13,836,463 3,005,448 5,549,927 2,370,944 4,991,984
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ........... (6,839,888) (13,759,453) (3,005,198) (5,549,927) (2,352,465) (4,920,996)
Net realized gain on
investment transactions ....... (119) (224,251) (250) -- (8,181) (70,988)
------------- ------------ ------------ ------------ ------------ ------------
Total distributions to
shareholders ............... (6,840,007) (13,983,704) (3,005,448) (5,549,927) (2,360,646) (4,991,984)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ....... 707,938,281 958,464,195 340,056,978 545,916,653 289,728,776 410,743,301
Proceeds from reinvestment
of dividends .................. 6,734,573 13,704,346 2,990,595 5,441,069 2,165,614 4,767,017
Cost of shares redeemed ......... (718,050,441) (928,494,124) (369,658,332) (517,030,222) (292,292,150) (421,067,311)
------------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
net assets from capital
share transactions ........ (3,377,587) 43,674,417 (26,610,759) 34,327,500 (397,760) (5,556,993)
------------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
net assets ................ (3,379,384) 43,527,176 (26,610,759) 34,327,500 (387,462) (5,556,993)
Net Assets:
Beginning of period ............. 280,338,816 236,811,640 192,834,434 158,506,934 85,204,469 90,761,462
------------- ------------ ------------ ------------ ------------ ------------
End of period ................... $ 276,959,432 $280,338,816 $166,223,675 $192,834,434 $ 84,817,007 $ 85,204,469
============= ============ ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND -- FINANCIAL HIGHLIGHTS
DOMESTIC PRIME MONEY MARKET PORTFOLIO
===========================================================================================================================
Selected data for a share outstanding throughout each period.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 ------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
---------- ---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Net investment income (b) .............. 0.025 0.050 0.049 0.054 0.035 0.028
Net realized and unrealized gain
(loss) on investments ................. -- -- -- (0.002) -- --
------ ------ ------ ------ ------ ------
Total from investment operations ....... 0.025 0.050 0.049 0.052 0.035 0.028
------ ------ ------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .................. (0.025) (0.049) (0.049) (0.054) (0.035) (0.028)
Net realized gains ..................... -- (0.001) -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions .................... (0.025) (0.050) (0.049) (0.054) (0.035) (0.028)
------ ------ ------ ------ ------ ------
Contributions from affiliate (c) .......... -- -- -- 0.002 -- --
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
Total return (a) ....................... 2.55% 5.19% 5.12% 5.50% 3.56% 2.90%
====== ====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS /
SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .... $276,959 $280,339 $236,812 $169,297 $143,744 $145,021
Ratio of net investment income to
average net assets .................... 5.10%+ 4.99% 4.93% 5.33% 3.49% 2.82%
Ratio of operating expenses to average
net assets (d) ........................ 0.53%+ 0.52% 0.54% 0.53% 0.53% 0.62%
Ratio of interest expense to average
net assets ............................ -- -- 0.01% 0.02% 0.13% --
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
(a) Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(b) Net investment income before fees waived by the administrator for the years
ended October 31, 1996, 1995 and 1994 was $0.048, $0.053 and $0.034,
respectively.
(c) During the year ended October 31, 1995, the Portfolio realized losses on the
sale of certain securities. Pursuant to an undertaking, losses in the amount
of $262,913 were reimbursed to the Portfolio by the former Adviser.
(d) Operating expense ratios after custodian fee credits on cash balances
maintained with the custodian and fees waived by the administrator for the
year ended October 31, 1996 and 1995 were 0.52% and 0.50%, respectively. The
operating expense ratio after fees waived by the administrator for the year
ended October 31, 1994 was 0.53%.
<TABLE>
<CAPTION>
TAX EXEMPT MONEY MARKET PORTFOLIO
===========================================================================================================================
Selected data for a share outstanding throughout each period.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 ------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
---------- ---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Net investment income (b) .............. 0.018 0.031 0.030 0.034 0.022 0.021
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .................. (0.018) (0.031) (0.030) (0.034) (0.022) (0.021)
------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total return (a) ....................... 1.54% 3.12% 3.04% 3.42% 2.21% 2.16%
======= ======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS /
SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ... $166,224 $192,834 $158,507 $140,826 $133,951 $117,751
Ratio of net investment income to
average net assets ................... 3.09%+ 4.99% 3.00% 3.35% 2.18% 2.15%
Ratio of operating expenses to
average net assets (c) ............... 0.50%+ 0.53% 0.54% 0.53% 0.54% 0.57%
- -------------------------------------------
+ Annualized.
(a) Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(b) Net investment income before fees waived by the administrator for the years
ended October 31, 1995 and 1994 was $0.033 and $0.021, respectively.
(c) The operating expense ratios after custodian fee credits on cash balances
maintained with the custodian for the six months ended April 30, 1998 was
0.49%. Operating expense ratios after custodian fee credits on cash balances
maintained with the custodian for the years ended October 31, 1997 and 1996
were 0.52% and 0.52%, respectively. The operating expense ratio after
custodian fee credits on cash balances maintained with the custodian and
fees waived by the administrator for the year ended October 31, 1995 was
0.50%. The operating expense ratio after fees waived by the administrator
for the year ended October 31, 1994 was 0.53%.
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND -- FINANCIAL HIGHLIGHTS
U.S. TREASURY MONEY MARKET PORTFOLIO
===========================================================================================================================
Selected data for a share outstanding throughout each period.
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 ------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
---------- ---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period .... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Net investment income ................... 0.028 0.047 0.047 0.051 0.033 0.026
Net realized and unrealized gain
on investments ........................ -- 0.001 -- -- -- --
------- ------- ------- ------- ------- -------
Total from investment operations ........ 0.028 0.048 0.047 0.051 0.033 0.026
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .................. (0.028) (0.047) (0.047) (0.051) (0.033) (0.026)
Net realized gains ..................... -- (0.001) -- -- -- --
Total distributions .................... (0.028) (0.048) (0.047) (0.051) (0.033) (0.026)
------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total return (a) ........................ 2.47% 4.91% 4.83% 5.27% 3.31% 2.60%
======= ======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS /
SUPPLEMENTAL DATA:
NET ASSETS, END OF PERIOD (IN 000'S) .... $84,817 $85,204 $90,761 $94,834 $138,205 $224,071
Ratio of net investment income to
average net assets ..................... 4.91%+ 4.74% 4.70% 5.10% 3.07% 2.55%
Ratio of operating expenses to
average net assets (b) ................. 0.50%+ 0.61% 0.63% 0.56% 0.49% 0.47%
- ----------------------------------------------
+ Annualized.
(a) Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(b) Operating expense ratios after custodian fee credits on securities lending
income for the year ended October 31, 1997 was 0.60%. Operating expense
ratios after custodian fee credits on cash balances maintained with the
custodian for the years ended October 31,1996 and 1995 were 0.60% and 0.54%,
respectively.
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. DESCRIPTION. The Treasurer's Fund, Inc. (the "Fund") is an open-end,
diversified management investment company organized as a Maryland Corporation
and registered under the Investment Company Act of 1940, as amended, (the
"Act"). The Fund currently consists of six separately managed portfolios, three
of which are active: the Domestic Prime Money Market Portfolio, the Tax Exempt
Money Market Portfolio and the U.S. Treasury Money Market Portfolio
(collectively, the "Portfolios"). The Global Money Market Portfolio, the Limited
Term Portfolio and the Tax Exempt Limited Term Portfolio still remain inactive.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
SECURITY VALUATION. Investments are valued at amortized cost (which approximates
market value) whereby a portfolio instrument is valued at cost and any discount
or premium is amortized on a constant basis to the maturity of the instrument.
REPURCHASE AGREEMENTS. Each Portfolio 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 other brokers or dealers that
meet credit guidelines established by the Directors. Under the terms of a
typical repurchase agreement, the Portfolio takes possession of an underlying
debt obligation subject to an obligation of the seller to repurchase, and the
Portfolio to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Portfolio's holding period. The Portfolio will
always receive and maintain securities as collateral whose market value,
including accrued interest, will be at least equal to 100% of the dollar amount
invested by the Fund in each agreement. The Portfolio will make payment for such
securities only upon physical delivery or upon evidence of book entry transfer
of the collateral to the account of the custodian. To the extent that any
repurchase transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to maintain the adequacy of the collateral. If
the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
DIVIDENDS AND DISTRIBUTIONS. Dividends from investment income (including
realized capital gains and losses) are declared daily and paid monthly.
Distributions of long term capital gains, if any, are paid annually. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Fund, timing
differences and differing characterization of distributions made by the Fund.
14
<PAGE>
THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
================================================================================
For the year ended October 31, 1997, the following reclassifications were made
to increase such accounts with offsetting adjustments to paid-in-capital:
Accumulated
Undistributed Net Realized Gain
Investment Income On Investments
----------------- --------------
Domestic Prime Money Market Fund $25,252 $55,897
Tax Exempt Money Market Fund --- 40,695
PROVISION FOR INCOME TAXES. The Fund has qualified and intends to continue to
qualify as a regulated investment company under Subchapter M of the Internal
Revenue Code of 1986, as amended. As a result, a Federal income tax provision is
not required.
At October 31, 1997, the Tax Exempt Money Market Portfolio had net capital loss
carryforwards for Federal income tax purposes of $14,007 with $2,775, $1,391,
$2,039 and $7,802 expiring in 2003, 2002, 2001 and 1998, respectively.
3. AGREEMENT WITH AFFILIATED PARTIES. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with Gabelli Fixed Income LLC (the
"Adviser") which provides that the Fund will pay the Adviser a fee, computed
daily and paid monthly, at the annual rate of 0.30% of the value of each
Portfolio's average daily net assets. In accordance with the Advisory Agreement,
the Adviser provides a continuous investment program for the Fund's portfolios,
oversees the administration of all aspects of the Fund's business and affairs
and pays the compensation of all Officers and Directors of the Fund who are its
affiliates.
Gabelli Funds, Inc. (the "Administrator") serves as the Administrator to the
Fund pursuant to an Administrative Services Agreement with each of the
Portfolios under which the Administrator provides services for a fee that is
computed daily and paid monthly in accordance with the following schedule: i)
0.10% of the first $500 million of aggregate average daily net assets of the
Fund, (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.
15
<PAGE>
THE TREASURER'S FUND
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
FAX: 1-914-921-5118
HTTP://WWW.GABELLI.COM
E-MAIL: [email protected]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
BOARD OF DIRECTORS
Felix J. Christiana
FORMER SENIOR VICE PRESIDENT
DOLLAR DRY DOCK SAVINGS BANK
Thomas E. O'Connor
CONSULTANT
GABELLI FIXED INCOME LLC
Anthony J. Colavita
ATTORNEY-AT-LAW
ANTHONY J. COLAVITA, P.C.
Karl Otto Pohl
FORMER PRESIDENT
DEUTSCHE BUNDESBANK
Richard N. Daniel
CHAIRMAN AND CHIEF
EXECUTIVE OFFICER
HANDY & HARMAN
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT
PROFESSOR, PACE UNIVERSITY
Mary E. Hauck
(RETIRED) SENIOR PORTFOLIO MANAGER
GABELLI-O'CONNOR FIXED INCOME
MUTUAL FUND MANAGEMENT CO.
Werner J. Roeder, MD
DIRECTOR OF SURGERY
LAWRENCE HOSPITAL
Robert C. Kolodny, MD
PHYSICIAN, AUTHOR AND LECTURER
GENERAL PARTNER OF KBS PARTNERSHIP
Anthonie C. Van Eckris
MANAGING DIRECTOR
BALMAC INTERNATIONAL, INC.
OFFICERS
Ronald S. Eaker
PRESIDENT AND
CHIEF INVESTMENT OFFICER
Judith A. Raneri
SECRETARY, TREASURER AND
PORTFOLIO MANAGER
Henley L. Smith
VICE PRESIDENT AND
INVESTMENT OFFICER
Bruce N. Alpert
VICE PRESIDENT
Georgette Horton
VICE PRESIDENT
DISTRIBUTOR
Gabelli Fixed Income
Distributors, Inc.
CUSTODIAN
Custodial Trust Company
LEGAL COUNSEL
Battle Fowler LLP
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Treasurer's Fund. It is not authorized for distribution to prospective investors
unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
THE
TREASURER'S
FUND
MONEY MARKET PORTFOLIOS
DOMESTIC PRIME
TAX EXEMPT
U.S. TREASURY
SEMI-ANNUAL REPORT
APRIL 30, 1998
