<PAGE> 1
THE TREASURER'S FUND
One Corporate Center
Rye, New York 10580-1434
1-800-TSR-FUND
[1-800-877-3863]
FAX: 1-914-921-2416
HTTP://WWW.GABELLI.COM
E-MAIL: [email protected]
BOARD OF DIRECTORS
<TABLE>
<S> <C>
Felix J. Christiana Thomas E. O'Connor
Former Senior Vice President Consultant
Dollar Dry Dock Savings Bank Gabelli Fixed Income LLC
Anthony J. Colavita Karl Otto Pohl
Attorney-at-Law Former President
Anthony J. Colavita, P.C. Deutsche Bundesbank
Richard N. Daniel Anthony R. Pustorino
Former Chairman and Certified Public Accountant
Chief Executive Officer Professor, Pace University
Handy & Harman
Mary E. Hauck Werner J. Roeder, MD
(Retired) Senior Portfolio Director of Surgery
Manager Lawrence Hospital
Gabelli-O'Connor Fixed Income
Mutual Fund Management Co.
Robert C. Kolodny, MD Anthonie C. van Ekris
Physician, author and lecturer Managing Director
General Partner of KBS BALMAC International, Inc.
Partnership
</TABLE>
QUESTIONS?
Call 1-800-TSR-FUND
or your investment representative.
THE
TREASURER'S
FUND
PROSPECTUS
MARCH 1, 1999
- U.S. TREASURY MONEY MARKET PORTFOLIO
- DOMESTIC PRIME MONEY MARKET PORTFOLIO
- TAX EXEMPT MONEY MARKET PORTFOLIO
- GLOBAL MONEY MARKET PORTFOLIO
AS OF THE DATE OF THIS PROSPECTUS, THE GLOBAL MONEY MARKET PORTFOLIO,
DISCUSSED IN THIS PROSPECTUS, HAS NOT BEEN ACTIVATED BY THE ADVISOR.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED THE SHARES DESCRIBED
IN THIS PROSPECTUS OR DETERMINED WHETHER THIS PROSPECTUS IS ACCURATE OR
COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE> 2
THE TREASURER'S FUND TABLE OF CONTENTS
The Treasurer's Fund, Inc. is a mutual fund designed to meet the distinctive
cash management objectives of treasurers and financial officers of corporations
and other institutions and individuals.
<TABLE>
<S> <C> <C>
RISK/RETURN SUMMARY AND FUND EXPENSES
Carefully review this important 3-5
section, which summarizes each
Portfolio's investments, risks,
past performance, and fees.
INVESTMENT OBJECTIVES, POLICIES AND RISKS
Review this section for 6-11
information on investment
strategies and their risks.
FUND MANAGEMENT
Review this section for details 12 The Investment Adviser
on the people and organizations 12 The Distributor
who oversee the Portfolios.
SHAREHOLDER INFORMATION
Review this section for details 13 Purchasing Shares
on how shares are valued, how 14 Selling Shares
to purchase, sell and exchange 15 General Policies on Selling Shares
shares, related charges and 16 Exchanging Shares
payments of dividends and 17 Pricing of Fund Shares
distributions. 17 Dividends, Distributions and Taxes
18 Distribution Arrangements
FINANCIAL HIGHLIGHTS
19 Financial Highlights
BACK COVER
Where to learn more about this Fund
</TABLE>
2
<PAGE> 3
RISK/RETURN SUMMARY AND FUND EXPENSES
RISK/RETURN SUMMARY OF THE MONEY MARKET PORTFOLIOS
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES The Portfolios seek to maximize current income, and to
maintain liquidity and a stable net asset value of $1.00 per
share.
PRINCIPAL The Portfolios are "money market funds" that invest
INVESTMENT STRATEGIES primarily in short term investments.
[ ] THE U.S. TREASURY MONEY MARKET PORTFOLIO will invest
primarily in short term U.S. Treasury obligations.
[ ] THE DOMESTIC PRIME MONEY MARKET PORTFOLIO will invest
primarily in short term, prime quality, domestic debt
obligations.
[ ] THE TAX EXEMPT MONEY MARKET PORTFOLIO will invest
primarily in short term municipal debt obligations
which are exempt from federal income tax.
[ ] THE GLOBAL MONEY MARKET PORTFOLIO will invest primarily
in short term foreign and domestic corporate and government
debt obligations.
PRINCIPAL An investment in the Portfolios is not insured or guaranteed
INVESTMENT RISKS by the Federal Deposit Insurance Corporation or any other
government agency. Although the Portfolios seek to preserve
the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Portfolios.
[ ] THE U.S. TREASURY MONEY MARKET PORTFOLIO
- Loss of state tax exemption if minimum levels of U.S.
Treasury obligations are not maintained.
[ ] THE DOMESTIC PRIME MONEY MARKET PORTFOLIO
- The value of any fixed rate investments will generally
decline when interest rates increase.
[ ] THE TAX EXEMPT MONEY MARKET PORTFOLIO will not be exempt
from federal income tax with respect to:
- taxable obligations
- municipal obligations that the IRS has successfully
asserted are not tax exempt obligations
[ ] THE GLOBAL MONEY MARKET PORTFOLIO
- The value of any fixed rate investments will generally
decline when interest rates increase.
- Foreign securities involve additional risks, such as
political, economic or regulatory factors in foreign
countries that affect the securities or their issuers.
WHO MAY Consider investing in the Portfolios if you:
WANT TO INVEST? [ ] ARE SEEKING PRESERVATION OF CAPITAL
[ ] HAVE A LOW RISK TOLERANCE
[ ] ARE WILLING TO ACCEPT LOWER POTENTIAL RETURNS IN
EXCHANGE FOR A HIGHER DEGREE OF SAFETY
[ ] ARE INVESTING SHORT-TERM RESERVES
These Portfolios will not be appropriate for anyone seeking
high total returns.
</TABLE>
3
<PAGE> 4
RISK/RETURN SUMMARY AND FUND EXPENSES
RISK/RETURN SUMMARY OF THE MONEY MARKET PORTFOLIOS
The charts and tables below show how the Money Market Portfolios have
performed and provide some indication of the risks of investing in the
Portfolios by showing how their performance has varied from year to year. The
bar charts show changes in the Portfolios' yearly performance since inception
to demonstrate how the Portfolios have performed at differing times. For
current yield information on the Portfolios, call 1-800-TSR-FUND
(1-800-877-3863). The Money Market Portfolios' yields appear in the Wall
Street Journal each Thursday. Of course, past performance does not indicate
how the Portfolios will perform in the future.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31
U.S. TREASURY MONEY MARKET PORTFOLIO
Best quarter: 1(st) 1991 1.57%
Worst quarter: 2(nd) 1993 0.62%
U.S. TREASURY GRAPH
5.64% 3.31% 2.60% 3.66% 5.35% 4.78% 4.96% 4.93%
1991 92 93 94 95 96 97 98
DOMESTIC PRIME MONEY MARKET PORTFOLIO
Best quarter: 2(nd) 1989 2.37%
Worst quarter: 2(nd) 1993 0.70%
DOMESTIC PRIME GRAPH
9.28% 8.16% 5.90% 3.50% 2.89% 3.88% 5.59% 5.00% 5.17% 5.07%
1989 90 91 92 93 94 95 96 97 98
TAX EXEMPT MONEY MARKET PORTFOLIO
Best quarter: 2(nd) 1989 1.62%
Worst quarter: 1(st) 1994 0.46%
TAX EXEMPT GRAPH
6.32% 5.94% 4.53% 2.89% 2.09% 2.41% 3.44% 2.98% 3.18% 3.00%
1989 90 91 92 93 94 95 96 97 98
GLOBAL MONEY MARKET
PORTFOLIO
This Portfolio has not been activated by
the Advisor, therefore performance
information is unavailable at this time.
4
- -
<PAGE> 5
RISK/RETURN SUMMARY OF THE MONEY MARKET PORTFOLIOS
As an investor in the
Money Market Portfolios,
you will pay the following
fees and expenses when you
buy and hold shares.
Annual Fund operating
expenses are paid out of
Portfolio assets, and are
reflected in the
Portfolios' yields.
FEES AND EXPENSES
<TABLE>
<S> <C> <C> <C> <C>
U.S. DOMESTIC TAX
TREASURY PRIME EXEMPT GLOBAL
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM
YOUR INVESTMENT)(a) None None None None
ANNUAL PORTFOLIO OPERATING
EXPENSES (EXPENSES THAT
ARE DEDUCTED FROM
PORTFOLIO ASSETS)
Management fees .30% .30% .30% .30%
Distribution and service
(12b-1) fees None None None None
Other expenses .27% .23% .22% .27%(b)
Total annual Portfolio
operating expenses .57% .53% .52% .57%
</TABLE>
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
U.S. TREASURY MONEY
MARKET PORTFOLIO $58 $183 $318 $714
DOMESTIC PRIME MONEY
MARKET PORTFOLIO $54 $170 $296 $665
TAX EXEMPT MONEY MARKET
PORTFOLIO $53 $167 $291 $653
GLOBAL MONEY MARKET
PORTFOLIO(b) $58 $183 $318 $714
</TABLE>
(a) There are no sales charges for
purchasing or redeeming fund shares nor
fees to exchange to another fund.
(b) Estimated. The Global Money Market
Portfolio has not commenced operations.
Use the example shown here to
compare fees and expenses
with those of other Funds. It
illustrates the amount of
fees and expenses you would
pay, assuming the following:
- $10,000 investment
- 5% annual return
- redemption at the end of
each period
- no changes in the
Portfolios' operating
expenses
Because this example is
hypothetical and for
comparison only, your actual
costs may be higher or lower.
5
<PAGE> 6
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
U.S. TREASURY MONEY MARKET PORTFOLIO
INVESTMENT OBJECTIVES AND POLICIES
The U.S. Treasury Money Market Portfolio's investment objectives are to
maximize current income and to maintain liquidity and a stable net asset
value of $1 per share. There can be no assurance that the Portfolio can
achieve these objectives or that it will be able to maintain a stable net
asset value of $1 per share.
The Portfolio attempts to accomplish these objectives by investing in U.S.
Treasury obligations which have effective maturities of 397 days or less and
repurchase agreements that are collateralized by U.S. Treasury obligations.
The investment objectives stated above are fundamental and may be changed
only with the approval of a majority of the outstanding shares of the
Portfolio.
PRINCIPAL INVESTMENT STRATEGIES
At least 65% of the Portfolio's total assets will consist of:
<TABLE>
<S> <C>
United States Treasury United States Treasury obligations are issued by the United
Obligations States Treasury and are backed by the full faith and credit
of the United States. U.S. Treasury obligations include
bills, notes and bonds, which principally differ only in
their interest rates, maturities and times of issuance.
Interest on U.S. Treasury obligations is specifically
exempted from state and local income taxes under federal
law. While shareholders in the U.S. Treasury Money Market
Portfolio do not directly receive interest on U.S. Treasury
obligations, the dividends from the Portfolio are derived
primarily from such interest.
Repurchase The Portfolio may also invest in repurchase agreements which
Agreements -- which are collateralized by U.S. Treasury obligations. Interest
are collateralized by income derived from such repurchase agreements is not
U.S. Treasury considered to be income derived from U.S. Treasury
obligations obligations and is not exempt from state and local income
taxes. The Portfolio may also engage in reverse repurchase
agreements.
</TABLE>
RISK FACTORS
Some states require that, in order for the tax exempt character of the
Portfolio's interest from U.S. Treasury obligations to pass through to
shareholders, the Portfolio must maintain specified minimum levels of U.S.
Treasury obligation investments. If a state's requirement is not met, then
none of the Portfolio's interest income would be tax exempt in that state.
While the Portfolio does not specifically limit the amount of repurchase
agreements which the Portfolio can enter into (other than the requirement
that 65% of the Portfolio's total assets be invested in U.S. Treasury
obligations and repurchase agreements collateralized by U.S. Treasury
obligations), the Portfolio will endeavor to maintain the levels necessary to
preserve the pass-through of the Portfolio's tax exempt interest income
6
<PAGE> 7
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
from U.S. Treasury obligations. These state requirements may change and
investors should consult their own tax advisors regarding these state tax
issues.
Interest income on U.S. Treasury obligations is not exempt from federal
income tax. In addition, capital gains, if any, realized by the Portfolio
upon the sale of U.S. Treasury obligations is not exempt from federal taxes
or, generally, from state and local taxes.
DOMESTIC PRIME MONEY MARKET PORTFOLIO
INVESTMENT OBJECTIVES AND POLICIES
The Domestic Prime Money Market Portfolio's investment objectives are to
maximize current income and to maintain liquidity and a stable net asset
value of $1 per share. There can be no assurance that the Portfolio can
achieve these objectives or that it will be able to maintain a stable net
asset value of $1 per share.
The Portfolio attempts to accomplish these objectives by investing
exclusively in prime quality, U.S. dollar denominated obligations of domestic
issuers which have effective maturities of 397 days or less.
The investment objectives stated above are fundamental and may be changed
only with the approval of a majority of the outstanding shares of the
Portfolio.
PRINCIPAL INVESTMENT STRATEGIES
The Domestic Prime Money Market Portfolio will invest primarily in the
following obligations:
<TABLE>
<S> <C>
United States Obligations issued or guaranteed by the United States
Government Obligations Government or by its agencies or instrumentalities. These
obligations are backed by the full faith and credit of the
United States, by the credit of the issuing or guaranteeing
agency or by the agency's right to borrow from the U.S.
Treasury.
Bank Obligations Certificates of deposit, bankers' acceptances and other
obligations issued or guaranteed by the 50 largest banks in
the United States. For this purpose, banks are ranked by
total deposits as shown by their most recent annual
financial statements.
Commercial Paper and Commercial paper and other short term domestic corporate
other Short Term obligations, including corporate bonds, variable amount
Corporate Obligations master demand notes and participations in corporate loans,
with maturities of 397 days or less.
</TABLE>
For further description of these obligations, including the liquidity of
participations in corporate loans, see "Investments and Investment Techniques
Common to Two or More Portfolios" in the Statement of Additional Information.
7
<PAGE> 8
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
RISK FACTORS
The Portfolio will only purchase high quality domestic money market
instruments that have been determined by the Fund's Board of Directors to
present minimal credit risks and that are "First Tier Eligible Securities" at
the time of acquisition so that the Portfolio is able to employ the amortized
cost method of valuation. Because interest rates on fixed rate investments
fluctuate in response to economic factors, rates on the Portfolio's
investment may vary, rising or falling with interest rates generally. The
value of the Portfolio's securities varies inversely with short-term interest
rates, the amount of outstanding debt and other factors. This means that the
value of the Portfolio's investments generally increases as short-term
interest rates fall and decreases as short-term interest rates rise. For a
detailed discussion of the quality requirements applicable to certificates of
deposit, bankers' acceptances and other bank obligations, see "Investments
and Investment Techniques Common to Two or More Portfolios" in the Statement
of Additional Information.
TAX EXEMPT MONEY MARKET PORTFOLIO
INVESTMENT OBJECTIVES AND POLICIES
The Tax Exempt Money Market Portfolio's investment objectives are to maximize
current income that is exempt from federal income tax and to maintain
liquidity and a stable net asset value of $1 per share. There can be no
assurance that the Tax Exempt Money Market Portfolio can achieve these
objectives or that it will be able to maintain a stable net asset value of $1
per share.
The Portfolio attempts to accomplish these objectives by investing in high
quality municipal securities which, in the opinion of bond counsel at the
date of issuance, earn interest exempt from federal income tax and which have
effective maturities of 397 days or less. Interest on these securities may be
subject to state and local taxes.
The investment objectives stated above are fundamental and may be changed
only with the approval of a majority of the outstanding shares of the
Portfolio.
PRINCIPAL INVESTMENT STRATEGIES
The Tax Exempt Money Market Portfolio intends to invest all of its assets in
tax exempt obligations and in no event shall invest less than 80% of its
total assets in such obligations; however, it reserves the right to invest up
to 20% of its total assets in taxable obligations (including securities the
interest income on which may be subject to alternative minimum tax). Such tax
exempt obligations consist of the following:
<TABLE>
<S> <C>
Municipal Bonds Bonds issued by or on behalf of states, territories and
possessions of the United States and the District of
Columbia and their political subdivisions, agencies,
authorities and instrumentalities. The Portfolio may invest
more than 25% of its assets in industrial revenue bonds, but
may not invest more than 25% of its assets in industrial
revenue bonds of projects of similar type or in the same
state.
</TABLE>
8
<PAGE> 9
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
<TABLE>
<S> <C>
Municipal Notes Municipal notes of various types, including notes issued in
anticipation of receipt of taxes, the proceeds of the sale
of bonds, other revenues or grant proceeds, as well as
municipal commercial paper and variable rate demand notes.
The interest rate on variable rate demand notes is
adjustable at periodic intervals of 397 days or less as
specified in the notes. There is no specific percentage
limitation on these investments.
Municipal Leases Municipal leases, which may take the form of a lease or an
installment purchase or conditional sale contract, are
issued by state and local governments and authorities to
acquire a wide variety of equipment and facilities.
Municipal leases frequently have special risks not normally
associated with general obligation or revenue bonds. These
types of municipal leases may be considered illiquid and
subject to the 10% limitation of investment in illiquid
securities set forth under "Investment Restrictions" in the
Statement of Additional Information.
</TABLE>
For further description of these obligations, see "Investment Techniques
Common to Two or More Portfolios" in the Statement of Additional Information.
RISK FACTORS
The Portfolio will only purchase high quality tax exempt money market
instruments that have been determined by the Fund's Board of Directors to
present minimal credit risks and that are "Eligible Securities" at the time
of acquisition so that the Portfolio is able to employ the amortized cost
method of valuation. Interest income of the Portfolio will not be exempt from
Federal income tax with respect to the following:
- taxable obligations
- municipal obligations that the IRS has successfully asserted are
not tax exempt obligations
Payment of interest and preservation of capital are dependent upon the
continuing ability of issuers and/or obligors of municipal and public
authority debt obligations to meet their payment obligations. Special factors
may negatively affect the value of municipal securities, and, as a result,
the Portfolio's share price. These factors include political or legislative
changes, uncertainties relating to the tax status of the securities or the
rights of investors in the securities. For a detailed discussion of the
quality requirements applicable to municipal bonds, municipal notes,
municipal leases and other municipal obligations, see "Investments and
Investment Techniques Common to Two or More Portfolios" in the Statement of
Additional Information.
GLOBAL MONEY MARKET PORTFOLIO
INVESTMENT OBJECTIVES AND POLICIES
The Global Money Market Portfolio's investment objectives are to maximize
current income and to maintain liquidity and a stable net asset value of $1
per share. There can be no assurance that the
9
<PAGE> 10
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
Portfolio can achieve these objectives or that it will be able to maintain a
stable net asset value of $1 per share.
The Portfolio seeks to produce a higher yield than the Domestic Prime Money
Market Portfolio by investing in the securities of issuers located in at
least three countries (including the United States). The securities invested
in by the Global Money Market Portfolio, described below, have effective
maturities of 397 days or less.
The investment objectives stated above are fundamental and may be changed
only with the approval of a majority of the outstanding shares of the
Portfolio.
PRINCIPAL INVESTMENT STRATEGIES
The Global Money Market Portfolio will invest primarily in the following
obligations:
<TABLE>
<S> <C>
United States Obligations issued or guaranteed by the United States
Government Obligations Government or by its agencies or instrumentalities. These
obligations are backed by the full faith and credit of the
United States, by the credit of the issuing or guaranteeing
agency or by the agency's right to borrow from the U.S.
Treasury.
Bank Obligations Certificates of deposit, bankers' acceptances and other
obligations (or instruments secured by such obligations) of
(i) domestic banks subject to regulation by the U.S.
Government or its agencies (such as the Federal Reserve
Board, the Comptroller of the Currency, or the FDIC) and
having total assets of over $1 billion unless their
obligations are guaranteed by their parent bank, which has
assets of over $5 billion; (ii) foreign branches of these
banks; (iii) United States branches of foreign banks of
equivalent size; and (iv) foreign banks. The Portfolio
limits investments in foreign bank obligations to U.S.
dollar denominated obligations of foreign banks which have
more than $10 billion of assets, are among the 75 largest in
the world, and have branches or agencies in the U.S.
Commercial Paper and Commercial paper and other short term domestic corporate
Other Short Term obligations, including corporate bonds, variable amount
Corporate Obligations master demand notes and participation in corporate loans,
with maturities of 397 days or less; commercial paper and
other short term obligations issued by foreign corporations
if the issuer is a direct parent or subsidiary of a United
States corporation, the obligation is United States dollar
denominated and is not subject to foreign withholding tax,
and commercial paper and other short term obligations issued
by foreign governments.
</TABLE>
RISK FACTORS
The Portfolio will only purchase high quality money market instruments that
have been determined by the Fund's Board of Directors to present minimal
credit risks and that are "First Tier Eligible Securities" at the time of
acquisition so that the Portfolio is able to employ the amortized cost method
of
10
<PAGE> 11
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
valuation. Because interest rates on fixed rate investments fluctuate in
response to economic factors, rates on the Portfolio's investments may vary,
rising or falling with interest rates generally. The value of the Portfolio's
securities varies inversely with short-term interest rates, the amount of
outstanding debt and other factors. This means that the value of the
Portfolio's investments generally increase as short-term interest rates fall
and decreases as short-term interest rates rise. To the extent that the
Portfolio is invested in foreign securities, such as Eurodollar certificates,
it may be subject to some foreign investment risk. Eurodollar certificates of
deposit may not be subject to some foreign investment risk. Eurodollar
certificates of deposit may not be subject to the same regulatory
requirements as certificates issued by U.S. banks and associated income may
be subject to the imposition of foreign taxes. For a more detailed discussion
of quality requirements applicable to certificates of deposit, bankers'
acceptances and other bank obligations, see "Investments and Investment
Techniques Common to Two or More Portfolios" in the Statement of Additional
Information.
RISK FACTORS (ALL PORTFOLIOS)
YEAR 2000. Like other funds and business organizations around the world, the
Fund could be adversely affected if the computer systems used by the Advisor,
the Fund's other service providers and companies in which the Fund invests do
not properly process and calculate date-related information for the year 2000
and beyond. The Fund has been informed that the Advisor and the Fund's other
service providers are taking steps to minimize the risk associated with the
Year 2000 problem, including inventorying of software systems, determining
inventory items that may not function properly after December 31, 1999,
reprogramming or replacing such systems and retesting for Year 2000 readiness
and obtaining assurances from their vendors and suppliers in the same manner.
Non-compliant Year 2000 systems upon which the Fund is dependent may result
in errors and account maintenance failures. The Fund has no reason to believe
that (1) the Year 2000 plans of the Fund's key service providers for services
critical to the Fund's operations will not be completed by December 31, 1999,
and (2) the costs currently associated with the implementation of their plans
will have material adverse impact on the business, operations or financial
condition of the Fund or its service providers.
Since the ultimate costs or consequences of incomplete or untimely resolution
of the Year 2000 problem are unknown to the Fund at this time, there may be
costs or consequences having a material adverse impact on the Fund's key
service providers, your account records and/or the operations or investments
of the Fund. The Fund and the Advisor will continue to monitor developments
relating to this issue, including the development of contingency plans for
providing back-up computer services in the event of a systems failure.
11
<PAGE> 12
FUND MANAGEMENT
THE INVESTMENT ADVISOR
Gabelli Fixed Income LLC, (the "Advisor"), One Corporate Center, Rye, NY
10580 is a Delaware limited liability company organized in 1997 and is the
successor company to Gabelli-O'Connor Fixed Income Mutual Funds Management
Co. formed in 1987. As of December 31, 1998, Gabelli Fixed Income LLC manages
more than $1.4 billion in assets. Through its portfolio management team,
Gabelli Fixed Income LLC makes the day-to-day investment decisions and
continuously reviews, supervises and administers the Portfolios' investment
programs.
For these advisory services, the Advisor was paid a fee of .30% of average
net assets during the fiscal year ended October 31, 1998. Any portion of the
total fees received by the Advisor may be used by the Advisor to provide
shareholder and administrative services and for distribution of Portfolio
shares.
THE DISTRIBUTOR
Gabelli Fixed Income Distributors, Inc. is the Fund's distributor. Its
address is One Corporate Center, Rye, NY 10580.
The Statement of Additional Information has more detailed information about
the Advisor and other service providers.
12
<PAGE> 13
SHAREHOLDER INFORMATION
MINIMUM INVESTMENTS
You may purchase Funds
through the Distributor or
participating
organizations, which may
charge additional fees and
may require higher or lower
minimum investments or
impose other limitations on
buying and selling shares.
<TABLE>
<CAPTION>
MINIMUM INITIAL MINIMUM SUBSEQUENT
INVESTMENT INVESTMENT
<S> <C>
$100,000 $0
</TABLE>
All purchases must be in U.S. dollars. A
fee will be charged for any checks that
do not clear. Third-party checks are not
accepted. Your purchase of shares will
be effective on the same business day if
the Portfolio's transfer agent receives
your order by 12 noon, eastern time, and
receives your form of payment by 4:00
p.m., eastern time. Otherwise, your
purchase will be effective on the next
business day.
A Fund may waive its minimum purchase
requirement and the Distributor may
reject a purchase order if it considers
it in the best interest of the Fund and
its shareholders.
PURCHASING SHARES
All investments made by regular mail or personal delivery, whether initial or
subsequent, should be sent to:
BY REGULAR MAIL
The Treasurer's Fund, Inc.
PO Box 3808
Boston, MA 02266-3808
BY OVERNIGHT DELIVERY
The Treasurer's Fund, Inc.
c/o BFDS
66 Brooks Drive
Braintree, MA 02184
For Initial Investment:
1. Carefully read and complete the application.
2. Make check, bank draft or money order payable to "The Treasurer's Fund,
Inc."
3. Mail or deliver application and payment to the address above.
For Subsequent Investments:
1. Use the investment slip attached to your account statement. Or, if
unavailable, provide the following information:
- Portfolio
- Amount invested
- Account name and number
2. Make check, bank draft or money order payable to "The Treasurer's Fund,
Inc."
3. Mail or deliver investment slip and payment to the address above.
13
<PAGE> 14
SHAREHOLDER INFORMATION
BY WIRE TRANSFER
For Initial Investment:
Call 1-800-TSR-FUND (1-800-877-3863) to obtain a new account number. Promptly
mail the completed application to the address shown above for mail purchases;
and
For All Investments:
Instruct your bank to wire transfer your investment to:
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
Routing Number: ABA #011-0000-28
Re: The Treasurer's Fund, Inc.
REF DDA# 99046187
A/C#
---------------------------
Your name
NOTE: YOUR BANK MAY CHARGE A WIRE TRANSFER FEE.
DIVIDENDS AND DISTRIBUTIONS
All dividends and distributions will be automatically reinvested unless you
request otherwise.
SELLING SHARES
As a mutual fund
shareholder, you are
technically selling shares
when you request a
withdrawal in cash. This
is also known as redeeming
shares or a redemption of
shares.
WITHDRAWING MONEY FROM YOUR INVESTMENT
You may sell your shares at any time. Your
sales price will be the next NAV after your
sell order is received by the Fund, its
transfer agent, or your investment
representative. See section on "General
Policies on Selling Shares" below.
14
<PAGE> 15
SHAREHOLDER INFORMATION
GENERAL POLICIES ON SELLING SHARES
BY BANK WIRE VIA TELEPHONE
1. Call 1-800-TSR-FUND (1-800-877-3863) with your account number and the
amount of the redemption.
2. If you are unable to reach the Fund by telephone, you may telecopy your
redemption request to the Fund at 914-921-2416.
NOTE: If you call by 12 noon, eastern time, your payment will normally be
wired to your bank on the same business day. If you call after that time,
your payment will be wired to your bank on the next business day.
BY BANK WIRE VIA MAIL
Submit a redemption request to the Fund. To obtain a redemption request form,
call 1-800-TSR-FUND.
BY CHECK WRITING
You may write checks to make payments to any person or business on your
account. To obtain checks, complete the check writing section of the Account
Application or contact the Fund to obtain a signature card. Dividends and
distributions will continue to be paid up to the day the check is presented
for payment. You must maintain the minimum required account balance of
$50,000 per Portfolio and you may not close your account by writing a check.
SIGNATURE GUARANTEES
Signature guarantees are required on redemption requests for the following:
- The check is not being mailed to the address on your account
- The check is not being made payable to the owner of the account
- The redemption proceeds are being transferred to another person's
Portfolio account.
A signature guarantee can be obtained from most banks and securities dealers.
Notarized signatures are not considered a signature guarantee.
VERIFYING TELEPHONE REDEMPTIONS
The Fund makes every effort to ensure that telephone redemptions are only
made by authorized shareholders. All telephone calls are recorded for your
protection and you will be asked for information to verify your identity. If
appropriate precautions have not been taken, the Fund may be liable for
losses due to unauthorized transactions.
REDEMPTIONS WITHIN 15 DAYS OF INVESTMENT
When you have made an investment by check, your redemption proceeds will not
be mailed until the Transfer Agent is satisfied that the check has cleared
(which may require up to 15 business days). You can avoid this delay by
purchasing shares with a certified check or federal funds wire.
15
- -
<PAGE> 16
SHAREHOLDER INFORMATION
REFUSAL OF REDEMPTION REQUEST
Payment for shares may be delayed under extraordinary circumstances or as
permitted by the SEC in order to protect remaining shareholders.
CLOSING OF SMALL ACCOUNTS
If your account falls below $50,000, the Fund may ask you to increase your
balance. If it is still below $50,000 after 60 days, the Fund may close your
account and send you the proceeds at the current NAV.
UNDELIVERABLE REDEMPTION CHECKS
If distribution checks (1) are returned and marked as "undeliverable" or (2)
remain uncashed for six months, your account will be changed automatically so
that all future distributions are reinvested in your account. Checks that
remain uncashed for six months will be canceled and the money reinvested in
the account.
EXCHANGING SHARES
You can exchange your
shares in one Portfolio for
shares of another Portfolio
of the Fund or other mutual
funds managed by Gabelli
Funds or its affiliates.
You must meet the minimum
investment requirements for
the Portfolio into which
you are exchanging.
Exchanges from one Fund to
another are taxable.
INSTRUCTIONS FOR EXCHANGING SHARES
Exchanges may be made by sending a
written request to The Treasurer's
Fund, Inc., PO Box 3808, Boston, MA
02266-3808 or by calling
1-800-TSR-FUND (1-800-877-3863).
Please provide the following
information:
- Your name and telephone number
- The exact name on your account
and account number
- Taxpayer identification number
(usually your Social Security
number)
- Dollar value or number of shares
to be exchanged
- The names of the Portfolios
from/into which the exchange is
to be made
See "Selling Shares" for important
information about telephone
transactions.
16
<PAGE> 17
SHAREHOLDER INFORMATION
PRICING OF FUND SHARES
HOW NAV IS CALCULATED
The NAV is calculated each
business day by adding the
total value of the
Portfolio's investments and
other assets, subtracting
its liabilities and then
dividing that figure by the
number of outstanding
shares of the Portfolio:
NAV =
Total Assets - Liabilities
-----------------------------
Number of Shares
Outstanding
---------------------------
The Portfolios' net asset value, or
NAV, is expected to be constant at
$1.00 per share, although this value
is not guaranteed. The NAV is
determined at 12 noon, eastern time,
on days the New York Stock Exchange is
open. The Portfolios value their
securities at their amortized cost.
This method involves valuing an
instrument at its cost and thereafter
applying a constant amortization to
maturity of any discount or premium,
regardless of the impact of
fluctuating interest rates on the
market value of the instrument.
DIVIDENDS, DISTRIBUTIONS AND TAXES
Any income a Portfolio receives in the form of interest is paid out, less
expenses, to its shareholders. Each Portfolio declares dividends from net
investment income on every business day. Dividends on the Portfolios are paid
monthly. Capital gains for the Portfolios are distributed at least annually.
Dividends and distributions are treated in the same manner for federal income
tax purposes whether you receive them in cash or in additional shares.
The Portfolios expect that their dividends will primarily consist of net
investment income or, if any, short-term capital gains as opposed to
long-term capital gains.
With respect to the U.S. Treasury, Domestic Prime and Global Money Market
Portfolios, dividends (including distributions from net investment income and
short-term capital gains) are taxable as ordinary income. With respect to the
Tax Exempt Money Market Portfolio, distributions of tax exempt income are not
subject to regular federal income tax, but may be subject to the alternative
minimum tax, and distributions of interest on taxable obligations, as well as
any net short-term capital gains, are taxable as ordinary income. Depending
on your residence for tax purposes, distributions also may be subject to
state and local taxes, including withholding taxes. Dividends are taken into
account for tax purposes in the year in which they are declared, even if they
appear on your account statement the following year. You will be notified in
January each year about the federal tax status of distributions made by the
Portfolios. With respect to the U.S. Treasury Money Market Portfolio,
distributions of interest on U.S. government obligations may be exempt from
state and local taxes.
17
<PAGE> 18
SHAREHOLDER INFORMATION
-----------------------------------------------------------------------------
TAX IDENTIFICATION NUMBER
The Fund is required to withhold 31% of taxable dividends, capital gains
distributions and redemptions proceeds paid to shareholders who have not
provided the Fund with their Taxpayer Identification Number in compliance
with IRS rules. To avoid this, make sure you provide your correct Tax
Identification Number (Social Security Number for most investors) on your
account application.
-----------------------------------------------------------------------------
Foreign shareholders may be subject to special withholding requirements.
Consult your tax advisor about the federal, state and local tax consequences
in your particular circumstances.
DISTRIBUTION ARRANGEMENTS
The Fund has adopted a distribution and service plan (the "Plan") pursuant to
Rule 12b-1 under the 1940 Act for each Portfolio of the Fund. The Rule
provides that an investment company which bears any direct or indirect
expense of distributing its shares must do so only in accordance with a plan
permitted by Rule 12b-1. There are no fees or expenses chargeable to the Fund
under the Plans and the Fund's Board of Directors has adopted the Plans in
case certain expenses of the Fund might be considered to constitute indirect
payment by the Fund of distribution expenses. If a payment of advisory fees
by the Fund to the Advisor should be deemed to be indirect financing by the
Fund of the distribution of its shares, such payments are authorized by the
Plans.
The Plans provide that the Advisor may make payments from time to time from
its own resources, which may include the advisory fee and past profits, to
pay promotional and administrative expenses in connection with the offer and
sale of shares of the Portfolios, including payments to participating
organizations for performing shareholder servicing and related administrative
functions and for providing assistance in distributing the Fund's shares. The
Advisor, in its sole discretion, will determine the amount of such payments
made pursuant to the Plans, provided that such payments will not increase the
amount which the Fund is required to pay to the Advisor for any fiscal year
under the Advisory Agreement in effect for the year.
18
<PAGE> 19
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand the
Funds' financial performance for the past 5 years. Certain information
reflects financial results for a single Fund share. The total returns in the
tables represent the rate that you would have earned on an investment in the
Fund (assuming reinvestment of all dividends and distributions). This
information has been audited by Ernst & Young LLP, independent auditors,
whose unqualified report, along with the Fund's financial statements, are
included in the Statement of Additional Information, which is available upon
request.
U.S. TREASURY MONEY MARKET PORTFOLIO
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------- --------
Net investment income 0.048 0.047 0.047 0.051 0.033
Net realized and unrealized gain on
investments 0.001 0.001 -- -- --
-------- ------- ------- ------- --------
Total from investment operations 0.049 0.048 0.047 0.051 0.033
-------- ------- ------- ------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.048) (0.047) (0.047) (0.051) (0.033)
Net realized gain on investments (0.001) (0.001) -- -- --
-------- ------- ------- ------- --------
Total distributions (0.049) (0.048) (0.047) (0.051) (0.033)
-------- ------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ========
Total return + 5.03% 4.91% 4.83% 5.27% 3.31%
======== ======= ======= ======= ========
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL
DATA:
Net assets, end of period (in 000's) $110,879 $85,204 $90,761 $94,834 $138,205
Ratio of net investment income to average
net assets 4.83% 4.74% 4.70% 5.10% 3.07%
Ratio of operating expenses to average net
assets 0.51% 0.61%(a) 0.63%(a) 0.56%(a) 0.49%
</TABLE>
+ Total return represents aggregate total return of hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends.
(a) Operating expense ratios after custodian fee credits on securities
lending income for the years ended October 31, 1997, 1996 and 1995 were
0.60%, 0.60% and 0.54%, respectively.
19
<PAGE> 20
FINANCIAL HIGHLIGHTS
TAX EXEMPT MONEY MARKET PORTFOLIO
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Net investment income 0.030 0.031 0.030 0.034(a) 0.022(a)
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income (0.030) (0.031) (0.030) (0.034) (0.022)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return+ 3.08% 3.12% 3.04% 3.42% 2.21%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL
DATA:
Net assets, end of period (in 000's) $213,590 $192,834 $158,507 $140,826 $133,951
Ratio of net investment income to average
net assets 3.04% 3.07% 3.00% 3.35% 2.18%
Ratio of operating expenses to average net
assets(b) 0.50% 0.53% 0.54% 0.53% 0.54%
</TABLE>
+ Total return represents aggregate total return of hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends.
(a) 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.
(b) Operating expense ratios after custodian fee credits on cash balances
maintained with the custodian for the years ended October 31, 1998, 1997
and 1996 were 0.48%, 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, 1994 was 0.53%.
20
<PAGE> 21
FINANCIAL HIGHLIGHTS
DOMESTIC PRIME MONEY MARKET PORTFOLIO
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Net investment income 0.050 0.050 0.049(a) 0.054(a) 0.035(a)
Net realized and unrealized gain (loss) on
investments -- -- -- (0.002) --
-------- -------- -------- -------- --------
Total from investment operations 0.050 0.050 0.049 0.052 0.035
-------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.050) (0.049) (0.049) (0.054) (0.035)
Net realized gain on investments -- (0.001)(b) -- -- --
-------- -------- -------- -------- --------
Total distributions (0.050) (0.050) (0.049) (0.054) (0.035)
-------- -------- -------- -------- --------
Contributions from affiliate -- -- -- 0.002(c) --
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return+ 5.15% 5.19% 5.12% 5.50% 3.56%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL
DATA:
Net assets, end of period (in 000's) $357,850 $280,339 $236,812 $169,297 $143,744
Ratio of net investment income to average
net assets 5.03% 4.99% 4.93% 5.33% 3.49%
Ratio of operating expenses to average net
assets 0.54% 0.52% 0.54%(d) 0.53%(d) 0.53%(d)
Ratio of interest expense to average net
asset -- -- 0.01% 0.02% 0.13%
</TABLE>
+ Total return represents aggregate total return of hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends.
(a) 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.
(b) $0.001 of the capital gain distributed in the fiscal year 1997 pertain to
fiscal year 1996 realized capital gains as dictated by IRS code section
855.
(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
Advisor.
(d) Operating expense ratios after custodian fee credits on cash balances
maintained with the custodian and fees waived by the administrator for
the year end 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%.
21
<PAGE> 22
THE TREASURER'S FUND, INC.
FOR MORE INFORMATION:
For more information about the Fund, the following documents are available free
upon request:
ANNUAL/SEMIANNUAL REPORTS:
The Fund's semi-annual and audited annual reports to shareholders contain
detailed information on the Fund's investments. In the annual report, you will
find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during its last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION (SAI):
The SAI provides more detailed information about the Fund, including their
operations and investment policies. It is incorporated by reference, and is
legally considered a part of this prospectus.
You can get free copies of Reports and SAI, prospectuses of other Funds in
the Gabelli family, or request other information and discuss your
questions about the Fund by contacting:
The Treasurer's Fund, Inc.
One Corporate Center
Rye, NY 10580
Telephone: 1-800-TSR-FUND
www.gabelli.com
You can review the Fund's reports and SAIs at the Public Reference Room of the
Securities and Exchange Commission. You can get text-only copies:
X For a fee, by writing the Public Reference Section of the Commission,
Washington, D.C. 20549-6009 or calling 1-800-SEC-0330.
X Free from the Commission's Website at http://www.sec.gov.
(Investment Company Act file no. 811-5347)
