THE
TREASURER'S
FUND
MONEY MARKET PORTFOLIOS
Domestic Prime
Tax Exempt
U.S. Treasury
ANNUAL REPORT
OCTOBER 31, 1999
<PAGE>
THE TREASURER'S FUND
ANNUAL REPORT
OCTOBER 31, 1999(a)
TO OUR SHAREHOLDERS,
The Federal Reserve Board (the "Fed") raised interest rates at the November
Federal Open Market Committee ("FOMC") meeting in an effort to slow the U.S.
economy and guard against accelerating inflation. The move was the third
quarter-point increase in less than five months. In explaining its action, the
Fed warned that the economy is running out of workers rapidly and continued
strong growth could lead to a surge in wages and eventually prices, jeopardizing
an economic expansion that is about to become the longest in the nation's
history.
Since the November 16 meeting, economic indicators have suggested the same
signs of a robust economy that have kept the markets on edge and the Fed willing
to push interest rates higher. A portion of the economy's strength has come
through significant gains in productivity, which is rising at a 4.9% annual
rate, the quickest pace since the fourth quarter of 1992. Other robust signs
included a rise in retail sales, broad based increases in manufacturing, a
larger than expected rise in consumer confidence, strong third quarter Gross
Domestic Product ("GDP") gains and solid wholesale inventories. Along with
significant signs of continued economic expansion, we have also observed signs
of moderate slowing within interest rate sensitive sectors. The National
Association of Purchasing Management ("NAPM") index and factory orders dropped,
existing home sales have declined, personal income and spending levels have
leveled off and a slowdown in payroll growth eased the strain in the
exceptionally tight labor market. The unemployment rate held steady at 4.1%, a
30-year low, while wages rose at the slowest rate in three months. We have also
witnessed subdued labor costs. With productivity up 3.1% year over year, unit
labor costs were 1.5% higher than in the same quarter last year. Despite some
indications that the increase in interest rates is beginning to have a punitive
impact on selected sectors, a broad-based slowing of the economy is unlikely to
occur in the near term.
In a flurry of economic releases before the Christmas holiday, we received
a number of critical inflation statistics. The Producer Price Index ("PPI")
report, which was the first of the inflation data released, with a rise of 0.2%
represented the fifth straight month of rising wholesale prices. More
importantly, the PPI report confirmed that there was virtually no acceleration
in price pressures. The Consumer Price Index ("CPI") rose 0.1%, with the core
components rising 0.2%, the slowest rise in five months. The CPI report
evidenced a benign price environment at the consumer level while retail sales
- -----------------------------------------------
(a) The Fund's fiscal year ends October 31.
<PAGE>
posted a stronger than expected 0.9% increase symbolizing strong underlying
growth in domestic demand. Together the reports suggest that the economy has a
great deal of momentum as it moves into the new millennium.
The Fed should remain firmly settled on the sidelines at the December 21
FOMC meeting. The approach of year-end and lingering concerns surrounding Year
2000 issues should effectively keep the Fed on hold for the remainder of the
year. Looking beyond the December meeting, the Fed will have greater latitude to
raise rates more aggressively if economic conditions warrant such action in
2000.
INTERNET
You can now visit us on the Internet. Our home page at
http://www.gabeIIi.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/signature
JUDITH A. RANERI
Portfolio Manager
December 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 is 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
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<TABLE>
<CAPTION>
THE TREASURER'S FUND
DOMESTIC PRIME MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- OCTOBER 31, 1999
====================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
COMMERCIAL PAPER -- 16.6%
$13,000,000 Banc One Financial Corp., 5.34%, 11/04/99 .................... P1/A1 $ 12,994,215
10,000,000 Three Rivers Funding Corp., 5.35%, 11/10/99 .................. P1/A1 9,986,625
11,500,000 Republic Industries Funding Corp., 5.38%, 11/16/99 ........... P1/A1 11,474,221
10,000,000 Premium Finance Loan Owner Trust, 5.37%, 11/22/99 ............ P1/A1 9,968,675
10,000,000 Louis Dreyfus Corp., 5.33%, 11/23/99 ......................... P1/A1+ 9,967,428
15,000,000 General Electric Capital Corp., 5.93%, 02/17/00 .............. P1/A1+ 14,733,150
-------------
TOTAL COMMERCIAL PAPER ................................................ 69,124,314
-------------
SENIOR NOTE -- 1.2%
5,000,000 Morgan Guaranty Trust (JPM), 5.43%, 11/29/99 ................. NR/A1+ 4,999,825
-------------
ADJUSTABLE RATE SECURITIES -- 3.1%
7,500,000 Health Insurance Plan of Greater New York, Series B, 5.45%,
11/01/99, Letter of Credit - Morgan Guaranty Trust,
07/01/16+ .................................................. NR/A1+ 7,500,000
4,200,000 New Jersey Economic Development Authority, Series E, 5.38%,
11/03/99, 10/01/21+ ........................................ P1/A1+ 4,200,000
1,200,000 New Jersey Economic Development Authority, Series E, 5.45%,
11/03/99, 08/01/14+ ........................................ NR/A1+ 1,200,000
-------------
TOTAL ADJUSTABLE RATE SECURITIES ...................................... 12,900,000
-------------
LOAN PARTICIPATIONS -- 4.8%
10,000,000 GMAC Mortgage, 5.38%, 11/01/99 ............................... NR/NR 10,000,000
10,000,000 GMAC Mortgage, 5.38%, 12/01/99 ............................... NR/NR 9,955,202
-------------
TOTAL LOAN PARTICIPATIONS ............................................ 19,955,202
-------------
CORPORATE COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.1%
259,026 European American Bank Lease Rec. Dep. Trust, 5.25%,
12/15/99 ................................................... P1/A1+ 259,026
-------------
U.S. GOVERNMENT AGENCY MORTGAGES -- 23.8%
5,000,000 Federal Home Loan Bank, 5.75%, 01/28/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.03%, 03/02/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.05%, 03/03/00 ...................... 5,000,000
4,000,000 Federal Home Loan Bank, 5.10%, 03/09/00 ...................... 4,000,000
5,000,000 Federal Home Loan Bank, 5.12%, 03/17/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.14%, 03/17/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.56%, 04/07/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.03%, 04/28/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.10%, 05/11/00 ...................... 4,999,820
5,000,000 Federal Home Loan Bank, 5.14%, 05/17/00 ...................... 4,999,875
5,000,000 Federal Home Loan Bank, 5.21%, 05/24/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.52%, 06/22/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 5.50%, 06/30/00 ...................... 5,000,000
10,000,000 Federal Home Loan Bank, 5.71%, 07/14/00 ...................... 10,000,000
5,000,000 Federal Home Loan Bank, 6.04%, 09/01/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 6.04%, 10/25/00 ...................... 5,000,000
5,000,000 Federal Home Loan Bank, 6.20%, 11/03/00 ...................... 5,000,000
5,000,000 Federal Home Loan Mortgage Corp.,5.00%,02/24/00 .............. 5,000,000
5,000,000 Federal National Mortgage Assoc., 5.05%, 05/12/00 ............ 4,997,733
--------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES .............................. 98,997,428
--------------
</TABLE>
See accompanying notes to financial statements.
3
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<TABLE>
<CAPTION>
THE TREASURER'S FUND
DOMESTIC PRIME MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 1999
====================================================================================================
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS -- 53.7%
$82,000,000 ABN AMRO, 5.30%, dated 10/29/99, due 11/01/99, proceeds at
maturity $82,036,217 (a) ...................................... $ 82,000,000
59,694,083 Bear Stearns & Co., 5.23%, dated 10/29/99, due 11/01/99,
proceeds at maturity $59,720,100 (b) .......................... 59,420,083
82,000,000 State Street Bank & Trust Co., 5.25%, dated 10/29/99,
due 11/01/99, proceeds at maturity $82,035,875 (c) ............ 82,000,000
-------------
TOTAL REPURCHASE AGREEMENTS ..................................... 223,420,083
-------------
TOTAL INVESTMENTS (COST $424,929,877) (d) .................... 103.3% 429,655,878
PAYABLE TO MANAGER ........................................... (0.0) (103,598)
PAYABLE TO ADMINISTRATOR ..................................... (0.0) (30,553)
PAYABLE FOR INVESTMENTS PURCHASED ............................ (3.6) (14,955,202)
DIVIDENDS PAYABLE ............................................ (0.2) (586,830)
OTHER ASSETS AND LIABILITIES (NET) ........................... 0.5 1,961,011
------ -------------
NET ASSETS (416,028,318 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) ........ 100.0% $415,940,706
===== ============
COMPOSITION OF NET ASSETS
Paid-in-capital .............................................. $415,947,168
Accumulated distribution in excess of net investment income .. (4,404)
Accumulated net realized loss on investments ................. (2,058)
============
NET ASSETS ................................................................. $415,940,706
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ................... $1.00
=====
- ---------------------------------------------
<FN>
+ Variable rate security. The short term date shown is the next rate change date.
(a) Collateralized by Federal Farm Credit Bank Notes, 4.90% to 5.53%, due 11/16/00 to
03/08/02, market value $83,641,150.
(b) Collateralized by U.S. Treasury STRIPS, Fannie Mae and Federal Home Mortgage notes,
0.55% to 7.76%, due 10/15/07 to 08/15/24, market values total $60,890,566.
(c) Collateralized by Federal Farm Credit Notes, 4.90% to 5.53%, due 11/16/00 to
03/08/02, market values total $83,865,000.
(d) Aggregate cost for Federal tax purposes.
* Credit ratings issued by Moody's Investors Services Inc., Standard & Poor's Corp. and
Fitch Investors Services Inc. (Unaudited). Moody's credit ratings of P1 and VMIG1,
Standard & Poor's credit rating of A1, and Fitch's credit rating of F1 indicate
instruments of the highest quality. Credit ratings of NR indicate that the security
is not rated. In the opinion of the Adviser, such instruments are judged to be of
comparable investment quality to rated securities which may be purchased by the
Portfolio.
</FN>
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- OCTOBER 31, 1999
=====================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS -- 99.4%
ALABAMA -- 2.3%
$2,000,000 Columbia Industrial Development Board, Pollution Control
Revenue, Alabama Power Company Project,
Series D, 3.75%, 11/01/99, 10/01/22+ ........................ VMIG1/A1 $ 2,000,000
500,000 Huntsville Industrial Development Board, Avco Corporation
Project, Series 1982, 4.05%, Letter of Credit - Wachovia Bank
of Georgia, 11/01/99 ........................................ NR/A1 500,000
2,000,000 Phenix County Industrial Development Board,
Environmental Improvement Revenue, Mead Coated Board Project,
Series A, 3.70%, 11/01/99, Letter of Credit - Toronto Dominion
Bank, 06/01/28+ ............................................. NR/A1+ 2,000,000
-----------
TOTAL ALABAMA ........................................................... 4,500,000
-----------
ARIZONA -- 4.0%
5,000,000 Maricopa County Pollution Control, El Paso Electric Company
Project, Series A, 3.55%, 11/03/99, Letter of Credit -
Barclays Bank, 07/01/14+ .................................... NR/P1 5,000,000
2,800,000 Scottsdale Industrial Development Authority Revenue, Scottsdale
Memorial Health Systems Project, Series B, 3.45%, 11/01/99,
AMBAC Insured, SPA - Credit Local de France,
09/01/22+ ................................................... VMIG1/A1+ 2,800,000
-----------
TOTAL ARIZONA .......................................................... 7,800,000
-----------
CALIFORNIA -- 1.0%
1,900,000 California Higher Education Loan Authority, Student Loan
Revenue, Series C, 3.55%, 07/01/00, Letter of Credit -
Student Loan Marketing, 07/01/02+ ........................... VMIG1/A1+ 1,900,000
-----------
COLORADO -- 0.6%
1,085,000 Colorado Health Facilities Authority, Boulder Community
Hospital Project, Series C, 3.45%, 11/01/99, MBIA Insured,
SPA - Rabobank Nederland, 10/01/14+ ......................... VMIG1/A1+ 1,085,000
-----------
CONNECTICUT -- 1.4%
2,700,000 Connecticut Special Assessment Unemployment Compensation,
Series C, 3.38%, 11/01/99, FGIC Insured, 11/15/01+ .......... VMIG1/A1+ 2,700,000
-----------
DELAWARE -- 1.5%
2,900,000 Delaware State Economic Development Authority Revenue,
Exempt Facilities - Delmarva Power & Light, Series A,
3.70%, 11/01/99, 10/01/17+ .................................. VMIG1/A1 2,900,000
-----------
FLORIDA -- 3.3%
4,500,000 Florida Gulf Coast University, 3.60%, 11/01/99,
Letter of Credit - First Union National Bank, 08/01/27+ ..... NR/A1 4,500,000
2,000,000 Lee County Industrial Development Authority, Health Care
Facilities Revenue, Cypress Cove Health Park - C, 3.50%,
11/03/99, Letter of Credit - Kredietbank NV, 10/01/04+ ...... VMIG1/NR 2,000,000
-----------
TOTAL FLORIDA ......................................................... 6,500,000
-----------
</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)-- OCTOBER 31, 1999
==========================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- -------
<S> <C> <C> <C>
GEORGIA -- 5.6%
$3,270,000 Burke County Development Authority, Pollution Control
Revenue, Georgia Power Company,
3.50%, 11/01/99, 07/01/24+ .................................. VMIG1/A1 $ 3,270,000
4,040,000 Burke County Development Authority, Pollution Control
Revenue, Ogelthorpe Power Corporation Project,
Series A, 3.50%, 11/03/99, FGIC Insured,
SPA - Bayersiche Landesbank, 01/01/16+ ...................... VMIG1/A1+/F1+ 4,040,000
2,000,000 Gwinnett County School District, Construction Sales Tax
Notes, 3.50%, 12/31/99 ...................................... MIG1/SP1+ 2,001,031
1,600,000 Hapeville Development Authority, Industrial Development
Revenue, Hapeville Hotel Limited Partnership, 3.55%,
11/01/99, Letter of Credit - Deutsche Bank AG, 11/01/15+ .... P1/NR 1,600,000
------------
TOTAL GEORGIA ........................................................... 10,911,031
------------
HAWAII -- 2.5%
4,900,000 Hawaii State Department of Budget and Finance, Queens
Health System, Series A, 3.55%, 11/03/99,
SPA - Morgan Guaranty Trust, 07/01/26+ ....................... VMIG1/A1+ 4,900,000
------------
ILLINOIS -- 2.5%
2,000,000 Illinois Health Facilities Authority Revenue Updates, Loyola
University Health System, Series B, 3.45%, 11/03/99,
MBIA Insured, SPA - C.S. First Boston, 07/01/24+ ............ VMIG1/A1+ 2,000,000
2,970,000 Illinois Housing Development Authority, Multi-Family
Housing - Camelot, 3.60%, 11/03/99, MBIA Insured,
SPA - First National Bank of Chicago, 05/01/27+ ............. VMIG1/A1+ 2,970,000
------------
TOTAL ILLINOIS .......................................................... 4,970,000
------------
INDIANA -- 1.3%
2,600,000 Indianapolis Industrial Resource Recovery Revenue, Ogden
Martin Systems, 3.60%, 11/01/99, Letter of Credit -
Westdeutsche Landesbank, 12/01/16+ .......................... NR/A1+ 2,600,000
------------
IOWA -- 0.4%
700,000 Iowa Finance Authority, Solid Waste Disposal Revenue,
Cedar River Paper Co. Project, 3.65%, 11/01/99,
Letter of Credit - Swiss Bank Corp., 12/01/31+ .............. NR/A1+ 700,000
------------
KANSAS -- 1.3%
1,100,000 Olathe Industrial Revenue, Garmin International Project, 3.60%,
11/03/99, Letter of Credit - Bank of America, 01/01/25+ ..... NR/A1+ 1,100,000
1,375,000 Wichita Renewal & Improvement Temporary Notes,
3.50%, 04/27/00 ............................................. MIG1/SP1+ 1,377,071
------------
TOTAL KANSAS ............................................................ 2,477,071
------------
KENTUCKY -- 2.2%
1,000,000 Kentucky Asset/Liability Common General Fund Revenue
Project Notes, 3.50%, 11/01/99 .............................. MIG1/SP1+/F1+ 1,000,000
2,000,000 Kentucky Asset/Liability Common General Fund Revenue,
Tax and Revenue Anticipation Notes, Series A,
4.25%, 06/28/00 ............................................. MIG1/SP1+/F1+ 2,011,094
1,255,000 Kentucky Development Financial Authority, Pooled Loan
Program, Series A, 3.45%, 11/01/99, FGIC Insured,
SPA - Landesbank Hessen, 12/01/15+ .......................... VMIG1/A1+ 1,255,000
------------
TOTAL KENTUCKY ........................................................... 4,266,094
------------
</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) -- OCTOBER 31, 1999
=========================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- -------
<S> <C> <C> <C>
MAINE -- 1.3%
$2,500,000 Maine Educational Loan Marketing Corp., Student
Loan Revenue, Series A-1, 3.55%, 11/03/99,
AMBAC Insured, 05/01/32+ .................................... VMIG1/A1+/F1+ $ 2,500,000
-----------
MARYLAND -- 4.4%
4,000,000 Maryland State and Local Facilities Loan -
Second Series, 4.75%, 08/01/00 .............................. Aaa/AAA 4,037,208
3,500,000 Montgomery County Housing Opportunity Revenue,
Kensington Park Issue II, 3.55%, 11/03/99, MBIA Insured,
SPA - First National Bank, 07/01/28+ ........................ VMIG1/A1+ 3,500,000
1,000,000 Northeast Maryland Waste Disposal Authority, Resource Recovery
Revenue, Harford County Resource, 3.35%, 11/03/99,
AMBAC Insured, SPA - Credit Local de France, 01/01/08+ ...... VMIG1/A1+ 1,000,000
-----------
TOTAL MARYLAND ......................................................... 8,537,208
-----------
MASSACHUSETTS -- 3.2%
6,300,000 Massachusetts State Health & Educational Facilities Authority,
Capital Assets Program, Series D, 3.50%, 11/01/99,
MBIA Insured, SPA - Credit Suisse, 01/01/35+ ................ VMIG1/A1+ 6,300,000
-----------
MICHIGAN -- 4.4%
2,000,000 Delta County Economic Development Corp. Environmental
Improvement Revenue, Mead Escanaba Paper, Series C,
3.55%, 11/01/99, Letter of Credit - Bank of Nova
Scotia, 12/01/23+ ........................................... P1/NR 2,000,000
4,000,000 Michigan Higher Education Student Loan, Series XII-B, 3.55%,
11/03/99, AMBAC Insured, SPA - Kredietbank NV, 10/01/13+ .... VMIG1/A1 4,000,000
1,300,000 Midland County Economic Development Corp.,
Dow Chemical Co. Project, Series A, 3.65%,
11/01/99, 12/01/23+ ......................................... P1/A1 1,300,000
1,300,000 Wayne Charter County Airport, Detroit Metropolitan County
Project, Series B, 3.55%, 11/03/99, Letter of Credit -
Bayerische Landesbank, 12/01/16+ ............................ VMIG1/A1+ 1,300,000
-----------
TOTAL MICHIGAN ......................................................... 8,600,000
-----------
MINNESOTA -- 2.6%
3,500,000 Rochester Minnesota Health Care, Mayo Foundation,
Mayo Medical Center, Series C, 3.55%, 01/19/00 .............. NR/A1+ 3,500,000
1,500,000 Rochester Minnesota Health Care, Mayo Foundation,
Mayo Medical Center, Series C, 3.55%, 01/25/00 .............. NR/A1+ 1,500,000
-----------
TOTAL MINNESOTA ........................................................ 5,000,000
-----------
MISSOURI -- 2.2%
2,040,000 Missouri State Development Financial Board Recreation Facility,
YMCA Greater St. Louis PJ-B, 3.60%, 11/03/99, Letter of
Credit - Bank of America, 09/01/02+ ......................... NR/A1+ 2,040,000
2,320,000 Missouri State Health & Educational Facilities Authority,
Christian Health Service, Series A, 3.45%, 11/01/99,
Letter of Credit - Morgan Guaranty Trust, 11/01/19+ ......... NR/A1+ 2,320,000
-----------
TOTAL MISSOURI ........................................................ 4,360,000
-----------
</TABLE>
See accompanying notes to financial statements.
7
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<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 1999
==========================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
NEBRASKA -- 1.0%
$2,000,000 Lancaster County Hospital Authority, Bryan Memorial
Hospital Project, 3.45%, 11/03/99, MBIA Insured,
SPA - Commerzbank AG, 06/01/12 .............................. VMIG1/A1+ $ 2,000,000
-----------
NEVADA -- 3.2%
4,202,000 Clark County Airport Revenue, Improvement Revenue,
Series A, 3.45%, 11/01/99, MBIA Insured,
Letter of Credit - Bayerische Hypo Vereinsbank, Credit Local
de France, Chase Manhattan Bank, 07/01/12+ .................. VMIG1/A1+ 4,202,000
2,000,000 Clark County Airport Revenue, Series B-1, 3.75%, 03/01/00,
Letter of Credit - Bayerische Landesbank, 07/01/29+ ......... VMIG1/A1+ 2,000,000
-----------
TOTAL NEVADA ......................................................... 6,202,000
-----------
NEW HAMPSHIRE -- 1.2%
2,425,000 Manchester Public Improvement, Series A, 3.75%, 05/01/00 ..... Aa2/NR 2,429,066
-----------
NEW JERSEY -- 4.3%
3,500,000 New Jersey Economic Development, New Jersey Natural
Gas Co., Series A, 3.65%, 11/01/99, AMBAC Insured,
SPA - Societe Generale, 08/01/30+ ........................... VMIG1/A1+ 3,500,000
5,000,000 New Jersey State Turnpike Authority, Series D, 3.40%,
11/03/99, Letter of Credit - Societe Generale, 01/01/18+ .... VMIG1/A1+/F1+ 5,000,000
-----------
TOTAL NEW JERSEY ..................................................... 8,500,000
-----------
NEW YORK -- 0.9%
1,300,000 New York State Local Government Assistance Corporation,
Series G, 3.35%, 11/03/99, Letter of Credit - Bank of
Nova Scotia, 04/01/25+ ...................................... VMIG1/A1 1,300,000
500,000 State of New York Dormitory Authority, Beverwyck Inc.,
3.50%, 11/03/99, Letter of Credit - Banque Paribas, 07/01/25+ VMIG1/A1+ 500,000
-----------
TOTAL NEW YORK ....................................................... 1,800,000
-----------
NORTH CAROLINA -- 6.3%
3,800,000 Charlotte Airport Revenue, Series A, 3.55%, 11/03/99,
MBIA Insured, SPA - Chase Manhattan Bank, 07/01/17+ ......... VMIG1/A1+ 3,800,000
2,500,000 Charlotte-Mecklenberg Hospital Authority, North Carolina
Health Care Systems, Series C, 3.50%, 11/04/99,
Liquidity Facility - Bank of America, 01/15/26+ ............. VMIG1/A1+ 2,500,000
5,000,000 Charlotte-Mecklenberg Hospital Authority, North Carolina
Health Care Systems, Series D, 3.45%, 11/04/99,
Liquidity Facility - NationsBank, 01/15/26+ ................. VMIG1/A1+ 5,000,000
1,100,000 North Carolina Educational Facilities Finance Authority
Revenue, Elon College Project, 3.45%, 11/03/99,
Letter of Credit - Bank of America, 01/01/19+ ............... VMIG1/A1+ 1,100,000
-----------
TOTAL NORTH CAROLINA ................................................ 12,400,000
-----------
</TABLE>
See accompanying notes to financial statements.
8
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<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 1999
===========================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
-------- -------- ------
<S> <C> <C> <C>
NORTH DAKOTA -- 1.4%
$ 300,000 Grand Forks North Dakota Health Care Facilities Revenue,
The United Hospital Obligation Group Project, Series A, 3.65%,
11/01/99, Letter of Credit - LaSalle National Bank, 12/01/25+ VMIG1/NR $ 300,000
1,500,000 North Dakota State Housing Finance Agency, Home Mortgage,
Series C, 3.20%, 04/01/00 ................................... MIG1/SP1+ 1,500,000
1,000,000 North Dakota State Housing Finance Agency Revenue, Housing
Finance Program, Series E, 3.80%, 09/29/00 .................. MIG1/SP1+ 1,000,000
-----------
TOTAL NORTH DAKOTA .................................................... 2,800,000
-----------
OHIO -- 2.3%
4,500,000 University of Cincinnati General Receipts, Anticipation Notes,
3.26%, 12/21/99 ............................................. MIG1/SP1+ 4,500,058
-----------
OKLAHOMA -- 1.2%
2,300,000 Oklahoma City Notes, 5.00%, 02/01/00 ......................... Aaa/AAA 2,311,921
-----------
PENNSYLVANIA -- 6.6%
2,200,000 Commonwealth of Pennsylvania, Series 1998A,
3.65%, 01/27/00 ............................................. A1/NR 2,200,000
1,500,000 Delaware County Industrial Development Authority,
Airport Facilities Revenue, United Parcel Service Project,
3.60%, 11/01/99, 12/01/15+ .................................. Aaa/AAA 1,500,000
1,250,000 Pennsylvania Energy Development Authority,
B&W Ebensburg Project, 3.55%, 11/03/99,
Letter of Credit - Landes Hessen-THRGN, 12/01/11+ ........... Aaa/NR 1,250,000
6,900,000 Philadelphia Water & Waste Water Revenue, Series B,
3.45%, 11/03/99, AMBAC Insured, SPA -
Commerzbank AG, 08/01/27+ .................................. VMIG1/A1+/F1+ 6,900,000
1,000,000 Quakertown General Authority Revenue, Pooled Financing
Program, Series A, 3.60%, 11/02/99, Letter of Credit -
PNC Bank NA, 06/01/28+ ...................................... VMIG1/NR 1,000,000
-----------
TOTAL PENNSYLVANIA ..................................................... 12,850,000
-----------
SOUTH CAROLINA -- 2.4%
2,600,000 South Carolina Educational Facilities Authority, Furman
University Project, Series B, 3.50%, 11/01/99, MBIA Insured,
SPA - Wachovia Bank of South Carolina, 10/01/26+ ............ Aaa/AAA 2,600,000
2,200,000 South Carolina Jobs Economic Development Authority,
St. Francis Hospital, 3.65%, 11/01/99, Letter of Credit -
Chase Manhattan Bank, 07/01/22+ ............................. VMIG1/NR 2,200,000
-----------
TOTAL SOUTH CAROLINA ................................................... 4,800,000
-----------
TENNESSEE -- 0.8%
1,500,000 Clarksville Public Building Authority Revenue, Pooled
Financing - Tennessee Municipal Bond Fund, 3.60%,
11/03/99, Letter of Credit - Bank of America, 10/01/25+ ..... NR/A1+ 1,500,000
-----------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 1999
===========================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
TEXAS -- 10.1%
$1,900,000 Brazos River Authority Pollution Control Revenue,
Texas Utilities Electric, Series A, 3.65%, 11/01/99,
MBIA Insured, SPA - Bank of New York, 02/01/32+ ............. VMIG1/A1+ $ 1,900,000
2,000,000 Brazos River Harbor Navigation District, Series 1990,
3.55%, 01/24/00 ............................................. VMIG1/A1+ 2,000,000
2,750,000 Harris County Housing Finance Corp., Multi-Family
Housing Revenue, Idlewood Park, Series A, 3.52%, 11/03/99,
Letter of Credit - Metropolitan Life Insurance Co., 06/01/05+ NR/A1+ 2,750,000
1,600,000 North Central Health Facilities Development Corp. Revenue,
Presbyterian Medical Center Project, Series D, 3.65%, 11/01/99,
MBIA Insured, SPA - NationsBank of Texas, 12/01/15+ ......... VMIG1/A1+ 1,600,000
2,600,000 Port Arthur Navigation District Industrial, American
Petrofina Inc., 3.60%, 11/01/99, Letter of Credit -
Credit Commercial de France, 05/01/03+ ...................... P1/NR 2,600,000
3,950,000 South Texas Higher Education Authority Inc., 3.55%, 11/03/99,
MBIA Insured, SPA - Sallie Mae, 12/01/27+ ................... VMIG1/NR 3,950,000
5,000,000 Texas State Tax & Revenue Anticipation Notes, Series A,
4.50%, 08/31/00 ............................................ MIG1/SP1+/F1+ 5,032,107
-----------
TOTAL TEXAS ........................................................... 19,832,107
-----------
UTAH -- 1.0%
900,000 Utah State Board of Regents Student Loan Revenue, Series C,
3.55%, 11/03/99, AMBAC Insured, SPA - Dresdner Bank, 11/01/13+ VMIG1/A1+ 900,000
1,085,000 Utah State Building Ownership Authority Lease Revenue,
Series A, 4.50%, 05/15/00 .................................. Aaa/AAA 1,091,286
-----------
TOTAL UTAH ............................................................ 1,991,286
-----------
WASHINGTON -- 6.9%
1,280,000 Port Bellingham Industrial Development Corp., Sauder
Woodcraft Corp. Project, 3.55%, 11/03/99, Letter of Credit -
Bank of America, 12/01/14+ .................................. Aa1/NR 1,280,000
1,500,000 Seattle Municipal Light & Power Revenue, 3.45%, 11/03/99,
Letter of Credit - Morgan Guaranty Trust, 06/01/21+ ......... VMIG1/A1+ 1,500,000
3,560,000 Washington State Health Care Facilities Authority Revenue,
Catholic Health Initiatives, Series A, 4.25%,
MBIA Insured, 12/01/99 ...................................... Aaa/AAA 3,561,758
2,245,000 Washington State Health Care Facilities Authority,
Mason Medical Center, Series B, 3.65%, 11/03/99,
MBIA Insured, SPA - C.S. First Boston, 02/15/27+ ............ VMIG1/A1+ 2,245,000
5,000,000 Washington State Public Power Supply System, Project
Number 2, Electric Revenue, Series 2A-1, 3.40%, 11/03/99,
MBIA Insured, SPA - C.S. First Boston, 07/01/12+ ............ VMIG1/A1+ 5,000,000
-----------
TOTAL WASHINGTON ...................................................... 13,586,758
-----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED)
- -- OCTOBER 31, 1999
============================================================================================================
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
WISCONSIN -- 1.8%
$2,445,000 La Crosse Pollution Control Revenue, Dairyland Power Coop.,
Series A, 3.55%, 11/03/99, AMBAC Insured, SPA - Rabobank
Nederland, 09/01/14+ ...................................... VMIG1/A1+ $ 2,445,000
1,000,000 Wisconsin State, Series 3, 4.25%, 11/01/99 ................. Aa2/AA 1,000,000
------------
TOTAL WISCONSIN ........................................................ 3,445,000
------------
TOTAL SHORT-TERM MUNICIPAL OBLIGATIONS ................................. 194,454,600
------------
TOTAL INVESTMENTS (COST $194,454,600) (a) ................................ 99.4% 194,454,600
PAYABLE TO MANAGER ....................................................... (0.0) (53,139)
PAYABLE TO ADMINISTRATOR ................................................. (0.0) (15,840)
DIVIDENDS PAYABLE ........................................................ (0.1) (183,056)
OTHER ASSETS AND LIABILITIES (NET) ....................................... 0.7 1,377,407
----- ------------
NET ASSETS (195,622,600 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) ......................... 100.0% $195,579,972
===== ============
COMPOSITION OF NET ASSETS
Paid-in-capital ...................................................................... $195,581,902
Undistributed net investment income .................................................. 770
Accumulated net realized loss on investments ......................................... (2,700)
------------
NET ASSETS ........................................................................... $195,579,972
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ............................. $1.00
=====
- ----------------------------------------------
<FN>
+ Variable rate security. The short term date shown is the next rate change date.
(a) Aggregate cost for Federal tax purposes.
* Credit ratings issued by Moody's Investors Services Inc., Standard & Poor's Corp. and Fitch
Investors Services Inc. (Unaudited). Moody's credit ratings of VMIG1 and P1, Standard & Poor's
credit rating of A1 and Fitch's credit rating of F1 indicate instruments of the highest
quality. Credit ratings of NR indicate that the security is not rated.In the opinion of the
Adviser, such instruments are judged to be of comparable investment quality to rated
securities which may be purchased by the Portfolio.
</FN>
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
U.S. TREASURY MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS
- -- OCTOBER 31, 1999
========================================================================================================
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 54.1%
$26,000,000 U.S. Treasury Bills, 4.66%, 11/04/99 ......................... $ 25,990,281
13,000,000 U.S. Treasury Bills, 4.67%, 11/12/99 ......................... 12,981,927
5,000,000 U.S. Treasury Bills, 5.09%, 01/27/00 ......................... 4,940,248
15,000,000 U.S. Treasury Notes, 5.50%, 03/31/00 ......................... 15,043,367
------------
TOTAL U.S. TREASURY OBLIGATIONS ....................................... 58,955,823
------------
REPURCHASE AGREEMENTS -- 45.9%
15,000,000 ABN AMRO, 5.20%, dated 10/29/99, due 11/01/99, proceeds
at maturity $15,006,500 (a) ................................. 15,000,000
20,000,000 Barclay's Capital, 5.22%, dated 10/29/99, due 11/01/99,
proceeds at maturity $20,008,700 (b) ........................ 20,000,000
14,963,459 Bear Stearns & Co., 5.23%, dated 10/29/99, due 11/01/99,
proceeds at maturity $14,969,982 (c) ........................ 14,963,460
------------
TOTAL REPURCHASE AGREEMENTS .......................................... 49,963,460
------------
TOTAL INVESTMENTS (COST $108,919,283) (d) .................................. 100.0% 108,919,283
PAYABLE TO MANAGER ......................................................... (0.0) (29,864)
PAYABLE TO ADMINISTRATOR ................................................... (0.0) (8,743)
DIVIDENDS PAYABLE .......................................................... (0.1) (143,824)
OTHER ASSETS AND LIABILITIES (NET) ......................................... 0.1 155,828
----- ------------
NET ASSETS (108,894,784 shares of beneficial interest outstanding,
$0.001 par value, two billion shares authorized) ........................... 100.0% $108,892,680
===== ============
COMPOSITION OF NET ASSETS
Paid-in-capital .................................................................... $108,894,805
Accumulated distribution in excess of net investment income ........................ (2,125)
------------
NET ASSETS ......................................................................... $108,892,680
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ........................... $1.00
=====
- ----------------------------------------------
<FN>
(a) Collateralized by U.S. Treasury Bond, 7.88%, due 02/15/21, market value $15,315,890.
(b) Collateralized by U.S. Treasury Bond, 6.60%, due 02/18/26, market value $20,401,091.
(c) Collateralized by U.S. Treasury Note, 6.50%, due 10/15/06, market value $15,266,954.
(d) Aggregate cost for Federal tax purposes.
</FN>
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
STATEMENT OF OPERATIONS -- YEAR ENDED OCTOBER 31, 1999
=======================================================================================================================
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................................. $19,908,486 $5,974,183 $5,551,542
EXPENSES:
Investment advisory fees ................................. 1,170,495 567,728 348,614
Administration fees ...................................... 344,056 193,018 97,180
Shareholder services fees ................................ 158,919 41,096 49,550
Custodian fees ........................................... 81,960 37,144 40,499
Legal and audit fees ..................................... 72,374 35,755 65,171
Directors' fees .......................................... 30,753 17,302 9,286
Miscellaneous expenses ................................... 128,210 46,779 42,023
----------- ---------- ----------
TOTAL EXPENSES ........................................... 1,986,767 938,822 652,323
Custodian fee credits .................................... -- (23,688) --
----------- ---------- ----------
TOTAL NET EXPENSES ....................................... 1,986,767 915,134 652,323
----------- ---------- ----------
NET INVESTMENT INCOME .................................... 17,921,719 5,059,049 4,899,219
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................. 167 (2,700) 44,590
----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..... $17,921,886 $5,056,349 $4,943,809
=========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND
STATEMENT OF CHANGES IN NET ASSETS
====================================================================================================================================
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
-------------------------- -------------------------- ------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income .......... $ 17,921,719 $ 14,861,120 $ 5,059,049 $ 5,833,106 $ 4,899,219 $ 4,778,044
Net realized gain (loss)
on investments ............... 167 2,459 (2,700) 14,353 44,590 100,398
-------------- ------------- ------------- ------------- ------------- -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 17,921,886 14,863,579 5,056,349 5,847,459 4,943,809 4,878,442
-------------- ------------- ------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .......... (17,972,297) (14,861,120) (5,061,709) (5,833,106) (4,901,323) (4,778,044)
Net realized gain on
investment transactions ...... -- ( ,256) -- (346) (44,590) (100,398)
-------------- ------------- ------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS
TO SHAREHOLDERS (17,972,297) (14,865,376) (5,061,709) (5,833,452) (4,945,913) (4,878,442)
-------------- ------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
($1.00 PER SHARE):
Proceeds from shares sold .... 3,318,246,393 1,781,729,609 584,568,905 688,316,889 1,207,585 805,182,983
Proceeds from reinvestment
of dividends ............... 17,078,577 14,377,159 4,939,651 5,768,277 4,224,966 4,291,497
Cost of shares redeemed ...... (3,277,183,482) (1,718,594,158) (607,513,281) (673,343,550) (1,213,795,134) (783,799,470)
-------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease)
in net assets from
share transactions ........... 58,141,488 77,512,610 (18,004,725) 20,741,616 (1,984,695) 25,675,010
-------------- ------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS ................ 58,091,077 77,510,813 (18,010,085) 20,755,623 (1,986,799) 25,675,010
NET ASSETS:
Beginning of period .......... 357,849,629 280,338,816 213,590,057 192,834,434 110,879,479 85,204,469
-------------- ------------- ------------- ------------- ------------- -------------
End of period ................ $ 415,940,706 $ 357,849,629 $ 195,579,972 $ 213,590,057 $ 108,892,680 $ 110,879,479
============== ============= ============= ============= ============= =============
Undistributed (Distribution in
excess of) net investment
income ....................... (4,404) (46,175) 770 3,430 (2,125) (21)
-------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND -- FINANCIAL HIGHLIGHTS
DOMESTIC PRIME MONEY MARKET PORTFOLIO
====================================================================================================================
Selected data for a share of beneficial interest outstanding throughout each period:
YEAR ENDED OCTOBER 31,
---------------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<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 (a) ........................... 0.045 0.050 0.050 0.049 0.054
Net realized and unrealized loss on investments ..... -- -- -- -- (0.002)
------ ------ ------ ------ ------
Total from investment operations .................... 0.045 0.050 0.050 0.049 0.052
------ ------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .................................... (0.045) (0.050) (0.049) (0.049) (0.054)
Net realized gain on investments ......................... -- -- (0.001) -- --
------ ------ ------ ------ ------
Total distributions ...................................... (0.045) (0.050) (0.050) (0.049) (0.054)
------ ------ ------ ------ ------
Contributions from affiliate (b) ......................... -- -- -- -- 0.002
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return+ ............................................ 4.65% 5.15% 5.19% 5.12% 5.50%
====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ..................... $415,941 $357,850 $280,339 $236,812 $169,297
Ratio of net investment income to average net assets ..... 4.55% 5.03% 4.99% 4.93% 5.33%
Ratio of operating expenses to average net assets (c) .... 0.50% 0.54% 0.52% 0.54% 0.53%
Ratio of interest expense to average net assets .......... -- -- -- 0.01% 0.02%
- --------------------------------------------------------
<FN>
+ 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.
(a) Net investment income before fees waived by the administrator for the years ended October 31, 1996 and
1995 was $0.048 and $0.053, 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 years ended October 31, 1996 and 1995 were 0.52% and 0.50%,
respectively.
</FN>
</TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO
=============================================================================
Selected data for a share of beneficial interest outstanding throughout each
period:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<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 (a) ........................... 0.027 0.030 0.031 0.030 0.034
------ ------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ............................... (0.027) (0.030) (0.031) (0.030) (0.034)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return+ ....................................... 2.71% 3.08% 3.12% 3.04% 3.42%
====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ..................... $195,580 $213,590 $192,834 $158,507 $140,826
Ratio of net investment income to average net assets ..... 2.67% 3.04% 3.07% 3.00% 3.35%
Ratio of operating expenses to average net assets (b) .... 0.49% 0.50% 0.53% 0.54% 0.53%
- -------------------------------------------------------
<FN>
+ 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.
(a) Net investment income before fees waived by the administrator for the year ended October 31, 1995 was $0.033.
(b) Operating expense ratios after custodian fee credits on cash 1998, 1997 and 1996 were 0.48%, 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%.
</FN>
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
THE TREASURER'S FUND -- FINANCIAL HIGHLIGHTS
U.S. TREASURY MONEY MARKET PORTFOLIO
====================================================================================================================
Selected data for a share of beneficial interest outstanding throughout each period:
YEAR ENDED OCTOBER 31,
----------------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<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 ............................... 0.042 0.048 0.047 0.047 0.051
Net realized and unrealized gain on investments ..... -- 0.001 0.001 -- --
------ ------ ------ ------ ------
Total from investment operations .................... 0.042 0.049 0.048 0.047 0.051
------ ------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ............................... (0.042) (0.048) (0.047) (0.047) (0.051)
Net realized gain on investments .................... -- (0.001) (0.001) -- --
------ ------ ------ ------ ------
Total distributions ................................. (0.042) (0.049) (0.048) (0.047) (0.051)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return+ ....................................... 4.34% 5.03% 4.91% 4.83% 5.27%
====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .................. $108,893 $110,879 $85,204 $90,761 $94,834
Ratio of net investment income to average net assets ..... 4.19% 4.83% 4.74% 4.70% 5.10%
Ratio of operating expenses to average net assets (a) .... 0.56% 0.51% 0.61% 0.63% 0.56%
- -------------------------------------------------------------
<FN>
+ 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.
(a) Operating expense ratios after custodian fee credits on securities 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.
</FN>
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
THE TREASURER'S FUND NOTES TO FINANCIAL STATEMENTS
================================================================================
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 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
realized capital gains and losses) are declared daily and paid monthly.
Distributions of long term capital gains, if any, are paid annually. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Fund, timing
differences and differing characterization of distributions made by the Fund.
17
<PAGE>
THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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 twelve months ended October 31, 1999, custodian fee
credits were $23,688. 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.
As of October 31, 1999, the Domestic Prime Money Market Portfolio had net
capital loss carryforwards for Federal income tax purposes of $2,058 expiring in
2006 and the Tax Exempt Money Market Portfolio had net capital loss
carryforwards for Federal income tax purposes of $2,700 expiring in 2007. The
tax exempt dividend paid by the Tax Exempt Money Market Portfolio was
$5,061,709.
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 1940 Act 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.
18
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
================================================================================
SHAREHOLDERS AND BOARD OF DIRECTORS
THE TREASURER'S FUND, INC.
We have audited the accompanying statements of net assets of the Domestic
Prime Money Market, the Tax Exempt Money Market, and the U.S.Treasury Money
Market Portfolios (each a portfolio of The Treasurer's Fund, Inc.) ("the Fund")
as of October 31, 1999, and the related statements of operations for the year
then ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1999 by correspondence with the custodian and
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting The Treasurer's Fund, Inc. at
October 31, 1999, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the period then
ended, in conformity with generally accepted accounting principles.
/s/signature
ERNST & YOUNG LLP
New York, New York
December 8, 1999
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1999 TAX NOTICE TO SHAREHOLDERS (UNAUDITED)
For the fiscal year ended on October 31, 1999, none of the ordinary income
dividends qualify for the dividend received deduction available to corporations.
For the fiscal year ended October 31, 1999, 100.0% of the ordinary income
dividends paid by the Tax Exempt Money Market Portfolio are exempt from Federal
taxation. These dividends may not be exempt from state and local taxation. Due
to the diversity in state and local tax laws, it is recommended that you consult
your personal tax advisor for the applicability of the information provided as
to your specific situation.
U.S. GOVERNMENT INCOME:
The percentage of ordinary income dividend paid by the Domestic Prime Money
Market Portfolio, Tax Exempt Money Market Portfolio and the U.S. Treasury Money
Market Portfolio during the period from November 1, 1998 through October 31,
1999 which was derived from U.S. Treasury securities was 18.3%, 0.0% and 52.2%
respectively. Such income may be exempt from state and local in all states.
However, many states, including New York and California, allow a tax exemption
for a portion of the income earned only if a mutual fund has invested at least
50% of its assets at the end of each quarter of the Fund's fiscal year in the
U.S. Treasury securities. The U.S. Treasury Money Market Portfolio derived 52.2%
of its ordinary income from the U.S. Treasury securities during fiscal year
1999. The Domestic Prime Money Market Portfolio and Tax Exempt Money Market
Portfolio did not meet this strict requirement in fiscal year 1999.
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<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 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
DEUTSCH BUNDESBANK
Anthony J. Colavita, P.C.
Richard N. Daniel Anthony R. Pustorino
FORMER CHAIRMAN AND CERTIFIED PUBLIC ACCOUNTANT
CHIEF EXECUTIVE OFFICER PROFESSOR, PACE UNIVERSITY
HANDY & HARMAN
Werner J. Roeder, MD
Mary E. Hauck MEDICAL DIRECTOR
(RETIRED) SENIOR PORTFOLIO MANAGER LAWRENCE HOSPITAL
MUTUAL FUND MANAGEMENT CO.
Anthonie C. Van Ekris
Robert C. Kolodny, MD MANAGING DIRECTOR
PHYSICIAN, AUTHOR AND LECTURER BALMAC INTERNATIONAL, INC.
GENERAL PARTNER OF KBS PARTNERSHIP
OFFICERS
Ronald S. Eaker Judith A. Raneri
PRESIDENT AND SECRETARY, TREASURER AND
CHIEF INVESTMENT OFFICER PORTFOLIO MANAGER
Henley L. Smith Bruce N. Alpert
VICE PRESIDENT AND VICE PRESIDENT
INVESTMENT OFFICER
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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