THE TREASURER'S FUND
SEMI-ANNUAL REPORT
APRIL 30, 1999(a)
TO OUR SHAREHOLDERS,
Bond yields have risen considerably as the market continues to prepare for
a possible near term interest rate hike. Expectations for higher interest rates
are based on persistent strength in the economy and the prospect of higher
inflation pressures. Several economic reports suggest acceleration in the
present pace of activity. In the first quarter of 1999, the economy grew at a
4.1% annual pace, spurred by the strongest rate of consumer spending in eleven
years. Inflation pressures intensified after the release of April's Consumer
Price Index ("CPI") report, which surged 0.7%, the largest jump in almost nine
years. Continued indications that the economy is still expanding are evident in
industrial production and housing starts, as well as gains in average hourly
earnings. However, inflation concerns diminished slightly after the release of
May's unchanged CPI report, which suggested inflation is not the looming problem
forecasted by April's CPI report. This data presents a challenge for the Federal
Reserve Board to determine whether higher interest rates are truly necessary to
keep inflation in line.
At the last Federal Open Market Committee ("FOMC") meeting on May 18, the
Fed kept interest rates unchanged, but announced a shift from neutral to a
tightening bias in its inter-meeting stance. According to the Fed, the key
reason for the shift was tight labor markets and "strength in demand in excess
of productivity gains", while also noting that costs and core prices remain low.
Strongly supporting the Fed's action was a decline in the unemployment rate from
4.3% in April to 4.2% in May (evidence that labor markets are not loosening).
Additional support comes from the 0.4% rise in May's hourly earnings, lifting
the year over year increase in wages to 3.6% from a revised 3.5% in April. With
the pace of wage inflation not as slow as previously believed, a rate hike could
easily be anticipated.
Federal Reserve Board Chairman Greenspan's address to the Joint Economic
Committee helped to soothe the markets. He suggested that the Fed should be
preemptive in order to fight the imbalances that are developing in the economy,
which pose risks going forward. He stated that by taking "modest" action now,
the Fed could avoid having to take more drastic action later. Mr. Greenspan's
comments diminished concerns of a series of immediate interest rate moves,
though he hinted that a 25 basis point rise in the federal funds rate was
imminent. The most recently released economic data points to the need for only
modest Fed action. For example, single family housing starts surged 12.8% in May
to the highest level since 1978, while mortgage applications for new home
purchases rose to their second
- ----------
(a) The Fund's fiscal year ends October 31.
<PAGE>
highest level on record. Industrial production rose 0.2% in May, while the Fed's
Beige Book report revealed that the "U.S. economy remains strong, with gains in
activity widespread." Most significant was the release of the unchanged CPI for
May, which confirmed that strong growth is still not leading to higher
inflation.
Therefore, while there is little urgency for the Fed to raise interest
rates in response to current inflation data, the pressure to do so is
significant. The combination of strong economic data and the bearish shift in
Fed commentary has left the market uncertain of what action the Fed will take
after the June meeting. With that in mind, market participants will now wait
anxiously for the conclusion of the FOMC meeting scheduled for June 29 and 30.
After the Fed meeting, observers will remain on data alert, living from number
to number, because it is the economic data that should determine the timing and
degree of any additional Fed action.
INTERNET
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Asset Management 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, 1999
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Total returns and average
annual returns, which reflect changes in investment income, are net of expenses.
Investment returns and yields will fluctuate. An investment in The Treasurer's
Fund Portfolios are neither insured nor guaranteed by the Federal Deposit
Insurance Corporation. Although the Fund seeks to preserve the value of an
investment at $1.00 per share, it is possible to lose money by investing in the
Fund. THE FUND'S PROSPECTUS CONTAINS MORE COMPLETE INFORMATION, INCLUDING FEES
AND EXPENSES. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING OR
SENDING MONEY.
2
<PAGE>
THE TREASURER'S FUND
DOMESTIC PRIME MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS --
APRIL 30, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Principal Credit Market
Amount Ratings* Value
------ -------- -----
<S> <C> <C> <C>
COMMERCIAL PAPER - 17.2%
$10,000,000 First Chicago Financial Corp., 4.88%, 05/03/99 ................... A1/P1 $ 9,997,289
10,000,000 Louis Dreyfus Corp., 4.86%, 05/05/99 ............................. A1+/P1 9,994,600
10,000,000 Three Rivers Funding Corp., 4.84%, 05/10/99 ...................... A1/P1 9,987,900
15,000,000 Grand Funding Corp., 4.83%, 05/24/99 ............................. A1+/P1 14,953,712
10,000,000 Ipalco Enterprises Inc., 4.84%, 06/21/99 ......................... A1/P1 9,931,433
15,000,000 Island Finance Puerto Rico Inc., 4.83%, 07/07/99 ................. A1/P1 14,865,163
------------
TOTAL COMMERCIAL PAPER ........................................... 69,730,097
------------
ASSET BACKED SECURITIES - 1.7%
6,740,838 European American Bank Lease Rec. Dep. Trust, 5.25%, 12/15/99 .... A1/P1 6,740,838
------------
MEDIUM TERM and SENIOR NOTES - 6.2%
10,000,000 Travelers Life & Annuity Funding Agreement, 4.929%, 05/17/99,+ ... A1+/P10+ 10,000,000
5,000,000 Morgan Guaranty Trust (JPM), 4.924%, 05/28/99, 11/29/99+ ......... Aa2/AA+ 4,999,728
10,000,000 Goldman Sachs Promissory Notes, 4.996%, 07/29/99, 10/26/99+ ...... A1+/P1 10,000,000
------------
TOTAL MEDIUM TERM AND SENIOR NOTES ............................... 24,999,728
------------
ADJUSTABLE RATE SECURITIES - 5.4%
7,000,000 Maine Finance Authority Electric Rate Stabilization,
Series 1998-A, 4.95%, 05/05/99, AMBAC Insured,
SPA - Fleet Bank, 06/01/08+ .................................... NR/VMIG1 7,000,000
1,280,000 New Jersey Economic Development Authority, 4.90%,
05/05/99, 08/01/14+ ............................................ A1+/NR 1,280,000
9,300,000 Health Insurance Plan of Greater New York, Series B, 4.90%,
05/05/99, Letter of Credit - Morgan Guaranty Trust, 07/01/16+ .. A1+/NR 9,300,000
4,400,000 New Jersey Economic Development Authority, 4.943%,
05/03/99, 10/01/21+ ............................................ A1+/P1 4,400,000
------------
TOTAL ADJUSTABLE RATE SECURITIES ................................. 21,980,000
------------
LOAN PARTICIPATIONS - 3.7%
15,000,000 GMAC Mortgage Corp., 4.97%, 05/04/99 ............................. NR/NR 14,993,788
------------
U.S. GOVERNMENT AGENCY MORTGAGES - 21.2%
5,000,000 Federal Home Loan Bank, 5.035%, 05/03/99 ......................... 5,000,000
5,000,000 Federal Home Loan Bank, 4.867%, 05/05/99, 04/07/00+ .............. 5,000,000
5,000,000 Federal Home Loan Bank, 5.00%, 05/24/99 .......................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.03%, 06/02/99 .......................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.05%, 06/03/99 .......................... 5,000,000
4,000,000 Federal Home Loan Bank, 5.10%, 06/09/99 .......................... 3,998,940
5,000,000 Federal Home Loan Bank, 5.14%, 06/17/99 .......................... 4,999,401
5,000,000 Federal Home Loan Bank, 5.115%, 06/17/99 ......................... 5,000,000
10,000,000 Federal Home Loan Bank, 4.72%, 06/18/99 .......................... 9,937,048
5,000,000 Federal Home Loan Bank, 5.03%, 07/28/99 .......................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.10%, 08/11/99 .......................... 4,998,438
5,000,000 Federal Home Loan Bank, 5.135%, 08/17/99 ......................... 4,999,219
5,000,000 Federal Farm Credit Bank, 4.83%, 10/01/99 ........................ 5,000,000
5,000,000 Federal Home Loan Bank, 5.00%, 10/27/99 .......................... 5,000,000
2,000,000 Federal Home Loan Bank, 4.94%, 10/27/99 .......................... 2,000,000
5,000,000 Student Loan Marketing Assoc., 4.90%, 10/27/99 ................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.03%, 10/29/99 .......................... 5,000,000
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES ........................... 85,993,046
------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
THE TREASURER'S FUND
DOMESTIC PRIME MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) --
APRIL 30, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Principal Market
Amount Value
------ -----
<S> <C> <C>
REPURCHASE AGREEMENTS - 47.0%
$80,000,000 ABN AMRO, 4.92%, dated 04/30/99,
due 05/03/99, proceeds at maturity $80,032,800 (a) ............. $80,000,000
80,000,000 State Street Bank & Trust Co., 4.92%, dated 04/30/99,
due 05/03/99, proceeds at maturity $80,032,800 (b) ............. 80,000,000
29,622,938 Bear Stearns & Co. Inc., 4.88%, dated 04/30/99,
due 05/03/99, proceeds at maturity $29,634,984 (c) ............. 29,622,938
------------
TOTAL REPURCHASE AGREEMENTS ...................................... 189,622,938
------------
TOTAL INVESTMENTS (Cost $414,000,435) (d) ...................................... 102.4% 414,000,435
PAYABLE TO MANAGER ............................................................. (0.0)% (95,663)
PAYABLE TO ADMINISTRATOR ....................................................... (0.0)% (29,047)
PAYABLE FOR SECURITIES PURCHASED ............................................... (2.5)% (9,997,656)
DIVIDENDS PAYABLE .............................................................. (0.1)% (423,894)
OTHER ASSETS AND LIABILITIES (NET) ............................................. 0.2% 989,131
----- ------------
NET ASSETS (404,524,457 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) ............................. 100.0% $404,443,306
====== ===== ============
COMPOSITION OF NET ASSETS
Paid-in-capital ................................................................ $404,443,306
Undistributed net investment income ............................................ 2,225
Accumulated net realized loss on investments ................................... (2,225)
------------
NET ASSETS ..................................................................... $404,443,306
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ....................... $1.00
=====
- ----------
+ Variable rate security. The short term date shown reflects the next rate
change.
(a) Collateralized by Federal Home Loan Bank, 5.91%, due 04/29/09, market value
$49,321,894 and FNMA Medium Term Note, due 07/26/99, market value
$32,338,574.
(b) Collateralized by FNMA, 4.85%, due 11/20/00, market value $81,600,925.
(c) Collateralized by U.S. Treasury STRIPS, due 08/15/01 to 11/15/24, market
value $30,463,636. (d) Aggregate cost for Federal tax purposes.
AMBAC - AMBAC Indemnity Corporation, SPA - Standby Purchase Agreement.
* Credit ratings issued by Standard & Poor's Corporation, Moody's Investors
Services Inc. and Fitch Investors Services Inc. (Unaudited). Standard &
Poor's credit rating of A1, Moody's credit rating of P1 and VMIG1 and
Fitch's credit rating of F1 reflect instruments of the highest quality.
Credit ratings of NR indicate that the security is not rated. In the
opinion of the Manager, such instruments are judged to be of comparable
investment quality to rated securities which may be purchased by the
Portfolios.
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- APRIL 30, 1999 (UNAUDITED)
====================================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
SHORT-TERM MUNICIPAL OBLIGATIONS - 99.4%
<S> <C> <C> <C>
ALABAMA - 0.3%
$ 500,000 Huntsville Industrial Development Board, Avco Corporation Project,
Series 1982, 4.50%, 05/06/99, LOC - Wachovia Bank
of Georgia,11/01/99+ .................................................. Aa2/NR $ 500,000
-----------
ARIZONA - 4.9%
5,000,000 Maricopa County Pollution Control, El Paso Electric
Company Project, Series A, 3.95%, 05/05/99, FGIC Insured,
LOC - Barclays Bank, 07/01/14+ ........................................ NR/P1 5,000,000
2,900,000 Scottsdale Industrial Development Authority Revenue,
Scottsdale Memorial Health Systems Project,
Series B, 3.85%, 05/05/99, AMBAC Insured,
SPA - Credit Local de France, 09/01/22+ ............................... VMIG1/A1+ 2,900,000
-----------
TOTAL ARIZONA ....................................................................... 7,900,000
-----------
COLORADO - 0.7%
1,085,000 Colorado Health Facilities Authority, Boulder Community
Hospital Project, Series C, 4.00%, 05/06/99, MBIA Insured,
SPA - Rabobank Nederland, 10/01/14+ ................................... VMIG1/A1+ 1,085,000
-----------
CONNECTICUT - 1.9%
3,000,000 Connecticut State Special Assessment Unemployment Compensation,
Series C, 3.60%, 07/01/99, FGIC Insured, 11/15/01+ .................... VMIG1/A1+ 3,000,000
-----------
FLORIDA - 7.0%
1,000,000 Collier County Health Facilities Authority Revenue,
Cleveland Clinic Health System Project, 4.25%, 05/03/99,
SPA - NBD Bank, 01/01/33+ ............................................. VMIG1/A1+ 1,000,000
2,500,000 Dade County, 6.00%, 10/01/99, FGIC Insured .............................. NR/NR 2,527,710
4,500,000 Florida Gulf Coast University, 4.05%, 05/06/99,
LOC - First Union National Bank, 08/01/27+ ............................ NR/A1 4,500,000
1,225,000 Indian Trace Community Development District Updates-Basin 1
Water Management, Series A, 3.85%, 05/05/99, MBIA Insured,
SPA - Swiss Bank Corp., 05/01/11+ ..................................... VMIG1/A1+ 1,225,000
2,000,000 Lee County Industrial Development Authority, Health Care
Facilities Revenue, Var-Cypress Cove Health Park - c, 3.90%,
05/05/99, LOC - Kredietbank N.V., 10/01/04+ ........................... VMIG1/NR 2,000,000
-----------
TOTAL FLORIDA ....................................................................... 11,252,710
-----------
GEORGIA - 4.4%
1,000,000 Burke County Development Authority, Pollution Control Revenue,
Georgia Power Company, 4.20%, 05/03/99, 07/01/24+ ..................... VMIG1/A1 1,000,000
4,040,000 Burke County Development Authority, Pollution Control Revenue,
Ogelthorpe Power Corporation Project, Series A, 3.85%, 05/05/99,
FGIC Insured, SPA - Canadian Imperial Bank, 01/01/16+ ................. VMIG1/A1+ 4,040,000
2,000,000 Gwinnett County School District Construction Sales Tax Notes,
3.50%, 12/31/99 ....................................................... MIG1/NR 2,004,191
-----------
TOTAL GEORGIA ....................................................................... 7,044,191
-----------
ILLINOIS - 3.1%
5,000,000 Illinois Health Facilities Authority Revenue Updates,
Loyola University Health Systems, Series B, 3.85%,
05/05/99, MBIA Insured, SPA - C.S. First Boston, 07/01/24+ ............ VMIG1/A1+ 5,000,000
-----------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1999 (UNAUDITED)
====================================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
INDIANA - 1.4%
$1,000,000 Indiana University, Student Fee Project, Series H, 6.40%, 08/01/99 ...... Aa3/AA $ 1,008,624
1,185,000 Purdue University, Student Fee Project, Series P, 4.00%, 07/01/99 ....... Aa2/AA 1,186,750
-----------
TOTAL INDIANA ....................................................................... 2,195,374
-----------
KANSAS - 1.5%
1,100,000 Olathe Kansas Industrial Revenue, Garmin International Project,
4.15%, 05/05/99, LOC - NationsBank, 01/01/25+ ......................... NR/A1+ 1,100,000
1,375,000 Wichita Temp. Notes, Series A, 3.50%, 04/27/00 .......................... MIG1/SP1+ 1,379,212
-----------
TOTAL KANSAS ........................................................................ 2,479,212
-----------
KENTUCKY - 1.4%
1,000,000 Kentucky Asset/Liability Common Fund Revenue Project,
3.50%, 11/01/99 ....................................................... MIG1/SP1+ 1,000,963
1,255,000 Kentucky Development Finance Authority, Pooled Loan Program,
Series A, 4.00%, 05/06/99, FGIC Insured,
SPA - Landesbank Hessen, 12/01/15+ .................................... VMIG1/A1+ 1,255,000
-----------
TOTAL KENTUCKY ...................................................................... 2,255,963
-----------
LOUISIANA - 3.2%
3,000,000 Louisiana State, Series 1991, 3.10%, 07/21/99,
LOC - Credit Local de France .......................................... VMIG1/A1+ 3,000,000
1,200,000 Parish of West Baton Rouge, Industrial District No. 3,
Series 1987, 2.70%, 05/13/99 .......................................... A1/P1 1,200,000
1,000,000 Placquemines Louisiana Port Harbor & Term District Marine Facility,
Electro-Coal Transfer, Series B, 2.65%, 05/20/99, 09/01/07+ ........... A1+/P1 1,000,000
-----------
TOTAL LOUISIANA ..................................................................... 5,200,000
-----------
MARYLAND - 0.6%
1,000,000 Northeast Maryland Waste Disposal Authority, Hartford
County Resource Recovery Revenue, 3.75%, 05/05/99,
AMBAC Insured, SPA - Credit Local de France, 01/01/08+ ................ VMIG1/A1+ 1,000,000
-----------
MICHIGAN - 3.3%
4,000,000 Michigan Higher Education Student Loan, Series XII B,
3.95%, 05/05/99, AMBAC Insured,
SPA - Kredietbank N.V., 10/01/13+ ..................................... VMIG1/A1 4,000,000
1,300,000 Wayne Charter County Airport, Detroit Metropolitan County Project,
Series B, 3.95%, 05/05/99,
LOC - Bayerische Landesbank, 12/01/16+ ................................ VMIG1/A1+ 1,300,000
-----------
TOTAL MICHIGAN ...................................................................... 5,300,000
-----------
MINNESOTA - 4.7%
3,500,000 Rochester Minnesota Health Care, Mayo Foundation,
Mayo Medical Center, Series C, 2.65%, 05/17/99+ ....................... A1+/NR 3,500,000
2,500,000 Rochester Minnesota Health Care, Mayo Foundation,
Mayo Medical Center, Series A, 2.70%, 05/13/99+ ....................... A1+/NR 2,500,000
1,500,000 Rochester Minnesota Health Care, Mayo Foundation,
Mayo Medical Center, Series F, 2.95%, 05/03/99+ ....................... A1+/NR 1,500,000
-----------
TOTAL MINNESOTA ..................................................................... 7,500,000
-----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1999 (UNAUDITED)
====================================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
MISSOURI - 1.6%
$2,500,000 Missouri State Health & Educational Facilities Authority,
Christian Health Service, Series A, 4.00%, 05/05/99,
LOC - Morgan Guaranty Trust, 11/01/19+ ................................ NR/A1+ $ 2,500,000
-----------
MONTANA - 3.1%
5,000,000 Montana State Tax & Revenue Anticipation Notes, 3.50%, 06/30/99 ......... MIG1/SP1+ 5,005,126
-----------
NEVADA - 2.7%
4,402,000 Clark County Nevada Airport Improvement Revenue, Series A,
3.85%, 05/05/99, MBIA Insured,
SPA - National Westminster, 07/01/12+ ................................. VMIG1/A1+ 4,402,000
-----------
NEW HAMPSHIRE - 5.2%
5,000,000 New Hampshire Business Finance & Authority, Subsidiary of
New England Power, Series B, 2.70%, 05/06/99 .......................... VMIG1/A1 5,000,000
3,300,000 New Hampshire Business Finance & Authority, Subsidiary of
New England Power, Series B, 3.10%, 06/03/99 .......................... VMIG1/A1 3,300,000
-----------
TOTAL NEW HAMPSHIRE ................................................................. 8,300,000
-----------
NEW JERSEY - 3.1%
5,000,000 New Jersey Turnpike Authority, Series D, 3.80%, 05/05/99,
FGIC Insured, LOC - Societe Generale, 01/01/18+ ....................... VMIG1/A1+ 5,000,000
-----------
NEW YORK - 3.0%
3,000,000 New York City Municipal Assistance Corporation, Subser K-2,
4.00%, 05/05/99, 07/01/08+ ............................................ VMIG1/A1+ 3,000,000
1,300,000 New York State Local Government Assistance Corporation,
Series G, 3.70%, 05/05/99, LOC - Bank of Nova Scotia, 04/01/25+ ....... VMIG1/A1+ 1,300,000
500,000 State of New York Dormitory Authority, Beverwyck Inc. Project,
3.90%, 05/05/99, LOC - Banque Paribas, 07/01/25+ ...................... VMIG1/A1 500,000
-----------
TOTAL NEW YORK ...................................................................... 4,800,000
-----------
NORTH CAROLINA - 6.8%
3,900,000 Charlotte Airport Revenue, Series A, 3.95%, 05/05/99, MBIA
Insured, SPA - Chase Manhattan Bank, 07/01/17+ ........................ VMIG1/A1+ 3,900,000
5,000,000 Charlotte-Mecklenberg Hospital Authority, North Carolina
Health Care Systems Revenue, Series D, 3.80%, 05/06/99,
Liquidity Facility - NationsBank, 01/15/26+ ........................... VMIG1/A1+ 5,000,000
1,000,000 Lenoir County Industrial Facilities & Pollution Control,
Series 1983, Texasgulf Inc. Project, 4.125%, 05/06/99,
LOC - Bank of Nova Scotia, 12/01/03+ .................................. A1/NR 1,000,000
1,100,000 North Carolina Educational Facilities Finance Authority Revenue,
Elon College Project, 3.85%, 05/05/99, AMBAC Insured,
SPA - Credit Local de France, 01/01/19+ ............................... VMIG1/A1+ 1,100,000
-----------
TOTAL NORTH CAROLINA ................................................................ 11,000,000
-----------
NORTH DAKOTA - 0.9%
1,500,000 North Dakota State Housing Finance Agency Revenue,
Series C, 3.20%, 04/01/00 ............................................. MIG1/NR 1,500,000
-----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1999 (UNAUDITED)
====================================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
OKLAHOMA - 1.5%
$2,300,000 Oklahoma City, 5.00%, 02/01/00 .......................................... Aa2/AA $ 2,335,738
-----------
OREGON - 2.6%
3,925,000 Oregon State Housing & Community Services, Series C,
3.75%, 05/13/99 ....................................................... NR/NR 3,925,000
200,000 Port of Portland, Horizon Air Industries Inc. Project, 4.30%,
05/03/99, LOC - First National Bank of Chicago, 06/15/27+ ............. NR/A1+ 200,000
-----------
TOTAL OREGON ........................................................................ 4,125,000
-----------
PENNSYLVANIA - 7.9%
2,000,000 Commonwealth of Pennsylvania, Series 1997A, 2.70%, 05/10/99 ............. A1+/P1 2,000,000
1,250,000 Pennsylvania Energy Development Authority, B&W Ebensburg Project,
3.95%, 05/05/99, LOC - Swiss Bank Corp., 12/01/11+ .................... Aa1/NR 1,250,000
1,380,000 Philadelphia Authority for Industrial Development,
Rice Association Project, 4.10%, 05/06/99,
LOC - First Union, 07/01/17+ .......................................... NR/NR 1,380,000
7,000,000 Philadelphia Water & Waste Water Revenue, Series B,
3.85%, 05/05/99, AMBAC Insured,
SPA - Commerzbank A.G., 08/01/27+ ..................................... VMIG1/A1 7,000,000
1,000,000 Quakertown General Authority Revenue, Pooled Financing,
Series A, 4.00%, 05/05/99,
LOC - PNC Bank National Association, 06/01/28+ ........................ VMIG1/A1+ 1,000,000
-----------
TOTAL PENNSYLVANIA .................................................................. 12,630,000
-----------
SOUTH CAROLINA - 3.0%
2,600,000 South Carolina Educational Facilities Authority, Furman
University Project, Series B, 3.95%, 05/06/99, MBIA Insured,
SPA - Wachovia Bank of South Carolina, 10/01/26+ ...................... VMIG1/AAA 2,600,000
2,255,000 South Carolina State Educational Assistance Authority,
Guaranteed Student Loan Program, Series Lien A-3, 5.30%, 09/01/99 ..... NR/AAA 2,271,326
-----------
TOTAL SOUTH CAROLINA ................................................................ 4,871,326
-----------
TENNESSEE - 1.6%
2,500,000 Metropolitan Nashville Airport Authority, Special Facilities Revenue,
American Airlines Inc. Project, Series B, 4.25%, 05/05/99, 10/01/12+ .. NR/A1+ 2,500,000
-----------
TEXAS - 11.6%
2,000,000 Bexar County Metropolitan Water District, 3.10%, 06/11/99 ............... A1+/P1 2,000,000
2,000,000 Brazos River Harbor Navigation District, Series 1990, 2.85%, 05/25/99 ... A1/P1 2,000,000
2,750,000 Harris County Housing Financial Corporation, Multi Family
Housing Revenue, Idlewood Park Development, Series A,
4.20%, 05/05/99, LOC - New England Mutual Life, 06/01/05+ ............. NR/A1+ 2,750,000
3,000,000 Houston Texas Tax & Revenue Anticipation Notes, 4.25%, 06/30/99 ......... MIG1/SP1+ 3,005,974
3,000,000 Houston Water & Sewer Revenue Notes, 2.70%, 05/03/99 A1/P1 3,000,000
3,950,000 South Texas Higher Education Authority Incorporated,
3.95%, 05/05/99, MBIA Insured,
SPA - Student Loan Marketing Association, 12/01/27+ ................... VMIG1/NR 3,949,999
2,000,000 Texas State Tax & Revenue Anticipation Notes, 4.50%, 08/31/99 ........... MIG1/SP1+ 2,008,664
-----------
TOTAL TEXAS ......................................................................... 18,714,637
-----------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- APRIL 30, 1999 (UNAUDITED)
====================================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
UTAH - 0.6%
$ 900,000 Utah State Board of Regents Student Loan Revenue, Series C,
4.10%, 05/05/99, AMBAC Insured, SPA - Dresdner Bank, 11/01/13+ ........ VMIG1/A1+$ 900,000
-----------
WASHINGTON - 4.0%
1,500,000 Seattle Washington Muncipal Light & Power Revenue,
3.85%, 05/05/99, SPA - Morgan Guaranty Trust, 06/01/21+ ............... VMIG1/A1+ 1,500,000
5,000,000 Washington State Public Power Supply System, Project Number 2,
3.85%, 05/05/99, MBIA Insured, SPA - C.S. First Boston, 07/01/12+ ..... VMIG1/A1+ 5,000,000
-----------
TOTAL WASHINGTON .................................................................... 6,500,000
-----------
WISCONSIN - 0.6%
1,000,000 Wisconsin State, Series 3, 4.25%, 11/01/99 Aa2/AA 1,005,400
-----------
WYOMING - 1.2%
2,000,000 Lincoln County Pollution Control Revenue, Exxon Corporation Project,
Series B, 2.95%, 05/11/99,
LOC - Union Bank of Switzerland ....................................... P1/A1+ 2,000,000
-----------
TOTAL SHORT-TERM MUNICIPAL OBLIGATIONS .............................................. 159,801,677
-----------
TOTAL INVESTMENTS (Cost $159,801,677) (a) .............................................. 99.4% 159,801,677
PAYABLE TO MANAGER ..................................................................... (0.0)% (40,278)
PAYABLE TO ADMINISTRATOR ............................................................... (0.0)% (12,350)
DIVIDENDS PAYABLE ...................................................................... (0.1)% (125,799)
OTHER ASSETS AND LIABILITIES (NET) ..................................................... 0.7% 1,153,145
---- -----------
NET ASSETS (160,819,793 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) ................................. 100.0% $160,776,395
==== ============
COMPOSITION OF NET ASSETS
Paid-in-capital .................................................................................... $160,779,095
Accumulated net realized loss on investments ....................................................... (2,700)
------------
NET ASSETS ......................................................................................... $160,776,395
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ........................................... $1.00
=====
</TABLE>
- -----------
+ Variable rate security. The short term date shown reflects the next rate
change.
(a) Aggregate cost for Federal tax purposes. 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, Moody's
Investors Services Inc. and Fitch Investors Services Inc. (Unaudited).
Standard & Poor's credit rating of A1, Moody's credit rating of P1 and
VMIG1 and Fitch's credit rating of F1 reflect instruments of the highest
quality. Credit ratings of NR indicate that the security is not rated.
In the opinion of the Manager, 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.
9
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
U.S. TREASURY MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- APRIL 30, 1999 (UNAUDITED)
====================================================================================================================
PRINCIPAL MARKET
AMOUNT VALUE
-------- -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 54.3%
U.S. TREASURY BILLS - 42.7%
$48,000,000 U.S. Treasury Bills, 4.35%, due 06/10/99 ........................ $ 47,768,000
8,000,000 U.S. Treasury Bills, 4.305%, due 07/22/99 ....................... 7,921,553
------------
55,689,553
------------
U.S. TREASURY NOTES - 11.6%
15,000,000 U.S. Treasury Notes, 5.50%, due 03/31/00 ........................ 15,094,219
------------
TOTAL U.S. TREASURY OBLIGATIONS ................................. 70,783,772
------------
REPURCHASE AGREEMENTS - 45.8%
26,000,000 ABN AMRO, 4.89%, dated 04/30/99,
due 05/03/99, proceeds at maturity $26,010,595 (a) ............ 26,000,000
13,747,734 Bear Stearns & Co. Inc., 4.88%, dated 04/30/99,
due 05/03/99, proceeds at maturity $13,753,325 (b) ............ 13,747,734
20,000,000 State Street Bank & Trust Co., 4.88%, dated 04/30/99,
due 05/03/99, proceeds at maturity $20,008,133 (c) ............ 20,000,000
------------
TOTAL REPURCHASE AGREEMENTS ..................................... 59,747,734
------------
TOTAL INVESTMENTS (Cost $130,531,506) (d) ...................................... 100.1% 130,531,506
PAYABLE TO MANAGER ............................................................. (0.0)% (28,250)
PAYABLE TO ADMINISTRATOR ....................................................... (0.0)% (8,547)
DIVIDENDS PAYABLE .............................................................. (0.1)% (135,445)
Other Assets and Liabilities (Net) ............................................. 0.0% 74,398
------ ------------
NET ASSETS (130,430,091 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) ........................... 100.0% $130,433,662
====== ============
COMPOSITION OF NET ASSETS
Paid-in-capital ................................................................ $130,430,113
Distributions in excess of net investment income ............................... (21)
Accumulated net realized gain on investments ................................... 3,570
------------
NET ASSETS ..................................................................... $130,433,662
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ....................... $1.00
=====
</TABLE>
- ---------------------
(a) Collateralized by U.S. Treasury Note, 5.50%, due 02/29/00, market value
$26,546,632.
(b) Collateralized by U.S. Treasury Bill, 11.125%, due 08/15/03, market value
$7,606,938 and U.S. Treasury Note, 7.25%, due 05/15/04, market value
$6,416,066.
(c) Collateralized by U.S. Treasury Bill, 8.75%, due 05/15/17, market value
$20,403,438.
(d) Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
STATEMENTS OF OPERATIONS -- SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
======================================================================================================================
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................................... $9,549,205 $2,756,312 $2,645,121
---------- ---------- ----------
EXPENSES:
Investment advisory fees ................................... 573,221 270,813 168,426
Administration fees ........................................ 173,310 81,931 50,905
Shareholder services fees .................................. 80,565 25,058 21,849
Custodian fees ............................................. 43,272 24,278 19,699
Legal and audit fees ....................................... 39,239 18,235 9,721
Directors' fees ............................................ 14,692 8,473 4,317
Miscellaneous expenses 51,564 32,276 35,132
---------- ---------- ----------
Total Expenses ............................................. 975,863 461,064 310,049
Custodian fee credits ...................................... -- (18,342) --
---------- ---------- ----------
TOTAL NET EXPENSES ......................................... 975,863 442,722 310,049
---------- ---------- ----------
NET INVESTMENT INCOME ....................................... 8,573,342 2,313,590 2,335,072
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 167 (2,700) 34,905
---------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........ $8,573,509 $2,310,890 $2,369,977
========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
==============================================================================================================================
DOMESTIC PRIME TAX EXEMPT
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
--------------------------------------- ----------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ............ $ 8,573,342 $ 14,861,120 $ 2,313,590 $ 5,833,106
Net realized gain (loss)
on investments ................. 167 2,459 (2,700) 14,353
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations ...... 8,573,509 14,863,579 2,310,890 5,847,459
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ............ (8,617,292) (2,317,020) (5,833,106) (2,335,072)
Net realized gain on
investment transactions ........ (167) (4,256) -- (346)
--------------- --------------- --------------- ---------------
Total distributions to
shareholders .................... (8,617,459) (14,865,376) (2,317,020) (5,833,452)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS:
($1.00 PER SHARE)
Proceeds from shares sold ........ 1,668,802,183 1,781,729,609 267,544,801 688,316,889
Proceeds from reinvestment
of dividends ................... 8,315,456 14,377,159 2,303,122 5,768,277
Cost of shares redeemed .......... (1,630,480,012) (1,718,594,158) (322,655,455) (673,343,550)
--------------- --------------- --------------- ---------------
Net increase (decrease) in
net assets from capital
share transactions ............. 46,637,627 77,512,610 (52,807,532) 20,741,616
--------------- --------------- --------------- ---------------
Net increase (decrease) in
net assets ..................... 46,593,677 77,510,813 (52,813,662) 20,755,623
NET ASSETS:
Beginning of period .............. 357,849,629 280,338,816 213,590,057 192,834,434
--------------- --------------- --------------- ---------------
End of period .................... $ 404,443,306 $ 357,849,629 $ 160,776,395 $ 213,590,057
=============== =============== =============== ===============
</TABLE>
<TABLE>
<CAPTION>
U.S. TREASURY
MONEY MARKET PORTFOLIO
---------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998
----------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income ............ $ 2,335,072 $ 4,778,044
Net realized gain (loss)
on investments ................. 34,905 100,398
--------------- ---------------
Net increase in net assets
resulting from operations ...... 2,369,977 4,878,442
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ............ (4,778,044)
Net realized gain on
investment transactions ........ (31,335) (100,398)
--------------- ---------------
Total distributions to
shareholders .................... (2,366,407) (4,878,442)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
($1.00 PER SHARE)
Proceeds from shares sold ........ 581,508,352
805,182,983
Proceeds from reinvestment
of dividends ................... 2,124,865 4,291,497
Cost of shares redeemed .......... (564,082,604) (783,799,470
--------------- ---------------
Net increase (decrease) in
net assets from capital
share transactions ............. 19,550,613 25,675,010
--------------- ---------------
Net increase (decrease) in
net assets ..................... 19,554,183 25,675,010
NET ASSETS:
Beginning of period .............. 110,879,479 85,204,469
--------------- ---------------
End of period .................... $ 130,433,662 $ 110,879,479
=============== ===============
</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, 1999 ----------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
---------- ---- ---- ---- ---- -----
<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 (a) 0.022 0.050 0.050 0.049 0.054 0.035
Net realized and unrealized gain
(loss) on investments -- -- -- -- (0.002) --
-------- ------- ------- ------- ------- --------
Total from investment operations 0.022 0.050 0.050 0.049 0.052 0.035
-------- ------- ------- ------- ------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (0.022) (0.050) (0.049) (0.049) (0.054) (0.035)
Net realized gain on investments -- -- (0.001) -- -- --
-------- ------- ------- ------- ------- --------
Total distributions (0.022) (0.050) (0.050) (0.049) (0.054) (0.035)
-------- ------- ------- ------- ------- --------
Contributions from affiliate (b) -- --- -- -- 0.002 --
-------- ------- ------- ------- ------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ======= ========
Total return+ 2.26% 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) $404,443 $357,850 $280,339 $236,812 $169,297 $143,744
Ratio of net investment income
to average net assets 4.49%(d) 5.03% 4.99% 4.93% 5.33% 3.49%
Ratio of operating expenses to
average net assets (c) 0.51%(d) 0.54% 0.52% 0.54% 0.53% 0.53%
Ratio of interest expense to
average net assets -- -- -- 0.01% 0.02% 0.13%
</TABLE>
- ------------
+ 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
periodincluding reinvestment of dividends. Total return for the period of
less than one year is not annualized.
(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) 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.
(c) 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%.
(d) Annualized.
<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, 1999 ----------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
---------- ---- ---- ---- ---- -----
<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 (a) 0.013 0.030 0.031 0.030 0.034 0.022
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (0.013) (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 $ 1.00
======== ======== ======== ======== ======== ========
Total return+ 1.28% 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) $160,776 $213,590 $192,834 $158,507 $140,826 $133,951
Ratio of net investment income
to average net assets 2.56%(c) 3.04% 3.07% 3.00% 3.35% 2.18%
Ratio of operating expenses to
average net assets (b) 0.51%(c) 0.50% 0.53% 0.54% 0.53% 0.54%
</TABLE>
- ------------
+ 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.
(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 periods ended April 30, 1999, October
31, 1998, 1997 and 1996 were 0.49%, 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, 1995 was 0.50%. The operating expense ratio after
fees waived by the administrator for the year ended October 31, 1994 was
0.53%.
(c) Annualized
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, 1999 ----------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
---------- ---- ---- ---- ---- -----
<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 0.021 0.048 0.047 0.047 0.051 0.033
Net realized and unrealized gain
(loss) on investments -- 0.001 0.001 -- -- --
-------- -------- --------- -------- -------- --------
Total from investment operations 0.021 0.049 0.048 0.047 0.051 0.033
-------- -------- --------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (0.021) (0.048) (0.047) (0.047) (0.051) (0.033)
Net realized gain on investments -- (0.001) (0.001) -- -- --
-------- -------- --------- -------- -------- --------
Total distributions (0.021) (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 $ 1.00
======== ======== ======== ======== ======== ========
Total return+ 2.11% 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) $130,434 $110,879 $85,204 $90,761 $94,834 $138,205
Ratio of net investment income to
average net assets 4.16%(b) 4.83% 4.74% 4.70% 5.10% 3.07%
Ratio of operating expenses to
average net assets (a) 0.55%(b) 0.51% 0.61% 0.63% 0.56% 0.49%
</TABLE>
- ------------
+ 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.
(a) 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.
(b) Annualized.
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") was organized as a
Maryland corporation. The Fund is a diversified, open-end management investment
company registered under the Investment Company Act of 1940, as amended (the
"1940 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"). Shares of these Portfolios are also offered as
Gabelli Cash Management shares of the Treasurer's Fund, Inc.. 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
primary government securities dealers recognized by the Federal Reserve Bank of
New York, 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.
When-issued securities are recorded on the date on which the priced transaction
confirmation is received.
DIVIDENDS AND DISTRIBUTIONS. Dividends from investment income (including short
term 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)
================================================================================
EXPENSES. Certain administrative expenses are common to, and allocated among,
the Portfolios. Such allocations are made on the basis of each Portfolio's
average net assets or other criteria directly affecting the expenses as
determined by the Adviser.
The Tax Exempt Money Market Portfolio maintains a cash balance with its
custodian and receives a reduction of its custody fees and expenses for the
amount of interest earned on such uninvested cash balances. For financial
reporting purposes for the six months ended April 30, 1999, custodian fee
credits were $18,342. There was no effect on net investment income. The
Portfolio could have invested such amounts in an income producing asset if it
had not agreed to a reduction of fees or expenses under the expenses offset
arrangement with its custodian.
PROVISION FOR INCOME TAXES. Each Portfolio 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.
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, LLC, (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.
The Fund has adopted a distribution and service plan (the "Plan") pursuant to
Rule 12b-1 under the Investment Company Act of 1940 for each Portfolio of the
Fund. There are no fees or expenses chargeable to the Fund under the Plan and
the Fund's Board of Directors has adopted the Plan in case certain expenses of
the Fund might be considered to constitute indirect payment by the Fund of
distribution expenses. Gabelli Fixed Income Distributors, Inc. (the
"Distributor") serves as the exclusive Distributor of the shares of each
Portfolio pursuant to its Distribution Agreement with the Fund.
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
Anthony J. Colavita
ATTORNEY-AT-LAW
ANTHONY J. COLAVITA, P.C.
Richard N. Daniel
FORMER CHAIRMAN AND
CHIEF EXECUTIVE OFFICER
HANDY & HARMAN
Mary E. Hauck
(RETIRED) SENIOR PORTFOLIO MANAGER
GABELLI-O'CONNOR FIXED INCOME
MUTUAL FUND MANAGEMENT CO.
Robert C. Kolodny, MD
PHYSICIAN, AUTHOR AND LECTURER
GENERAL PARTNER OF KBS PARTNERSHIP
Thomas E. O'Connor
CONSULTANT
GABELLI FIXED INCOME LLC
Karl Otto Pohl
FORMER PRESIDENT
DEUTSCHE BUNDESBANK
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT
PROFESSOR, PACE UNIVERSITY
Werner J. Roeder, MD
MEDICAL DIRECTOR
LAWRENCE HOSPITAL
Anthonie C. Van Eckris
MANAGING DIRECTOR
BALMAC INTERNATIONAL, INC.
OFFICERS
Ronald S. Eaker
PRESIDENT AND
CHIEF INVESTMENT OFFICER
Henley L. Smith
VICE PRESIDENT AND
INVESTMENT OFFICER
Judith A. Raneri
SECRETARY, TREASURER AND
PORTFOLIO MANAGER
Bruce N. Alpert
VICE PRESIDENT
DISTRIBUTOR
Gabelli Fixed Income
Distributors, Inc.
CUSTODIAN
Custodial Trust Company
LEGAL COUNSEL
Battle Fowler LLP
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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.
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THE
TREASURER'S
FUND
Money Market Portfolios
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Domestic Prime
Tax Exempt
U.S. Treasury
SEMI-ANNUAL REPORT
APRIL 30, 1999
