The Treasurer's Fund, Inc.
Limited Term Portfolio
Tax Exempt Limited Term Portfolio
PROSPECTUS
March 1, 2000
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The Securities and Exchange Commission has not approved or disapproved the
shares described in this prospectus or determined whether this prospectus is
accurate or complete. Any representation to the contrary is a criminal offense.
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THE TREASURER'S FUND, INC.
Limited Term Portfolio
Tax Exempt Limited Term Portfolio
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]
(Current Net Asset Value and yield information may
be obtained by calling 1-800-GABELLI after
6:00 P.M.)
Table of Contents
Introduction 2
Investment and Performance Summary 2-5
Additional Investment and
Risk Information 5-9
Management of the Portfolios 9
Purchase of Shares 10
Redemption of Shares 11
Exchange of Shares 13
Pricing of Portfolio Shares 14
Dividends and Distributions 14
Tax Information 14
Financial Highlights 14
Questions?
Call 1-800-GABELLI
or your financial consultant.
INTRODUCTION
The Treasurer's Fund, Inc. (the "Fund") is a mutual fund designed to meet the
distinctive cash management objectives of treasurers and financial officers of
corporations and other institutions and individuals. The Fund currently offers
five separate investment portfolios, two of which are described by this
Prospectus. This Prospectus relates only to the Limited Term Portfolio and Tax
Exempt Limited Term Portfolio (each a "Portfolio" and collectively, the
"Portfolios") of the Fund. The Portfolios are advised by Gabelli Fixed Income
LLC (the "Advisor"). Each Portfolio's investment objective is fundamental and
may be changed only with the approval of a majority of the outstanding shares of
the Portfolio.
INVESTMENT AND PERFORMANCE SUMMARY
LIMITED TERM PORTFOLIO
Investment Objective:
The Portfolio's investment objective is to maximize current income with moderate
risk of capital.
Principal Investment Strategies:
The Portfolio invests primarily in domestic and foreign corporate and government
debt obligations, including U.S. Government obligations, bank obligations,
commercial paper and other short term corporate obligations that are rated no
less than Aa by Moody's Investor Services, Inc. ("Moody's") or AA by Standard &
Poor's Corporation ("S&P"), or the equivalent. The Portfolio invests primarily
in securities having a maximum weighted average maturity of two years and a
maximum maturity of three years (three years and sixty days for new issues) at
the time of investment.
Principal Risks:
As the value of the Portfolio's investments will fluctuate with market
conditions, so will the value of your investment in the Portfolio. The value of
the Portfolio's fixed rate securities varies inversely with interest rates, the
amount of outstanding debt of an issuer and other factors. This means that the
value of the Portfolio's investment generally increases as interest rates fall
and decreases as interest rates rise. It is also possible that the issuer of a
security will not be able to make interest and principal payments when due. You
could lose money on your investment in the Portfolio, or the Portfolio could
underperform other investments. Some of the Portfolio's holdings may
underperform its other holdings. There is no guarantee that the Portfolio can
achieve its investment objective.
You May Want to Invest in the Portfolio if:
you are looking to add a monthly income component to your portfolio
you are willing to accept the risk of price and dividend fluctuations
You May Not Want to Invest in the Portfolio if:
you are using emergency reserves for investment
you are seeking safety of principal
TAX EXEMPT LIMITED TERM PORTFOLIO
Investment objective:
The Portfolio's objective is to maximize current income exempt from federal
income tax consistent with moderate risk of capital.
Principal Investment Strategies:
The Portfolio invests primarily in undervalued municipal debt obligations which
are exempt from federal income tax and have a maximum dollar weighted average
maturity of three years and a maximum maturity of five years (five years and
sixty days for new issues) at the time of investment. The Portfolio invests in
debt securities rated no less than A by Moody's or S&P, or the equivalent, and
in short term municipal obligations rated no less than VMIG-2 by Moody's, SP-2
by S&P or the equivalent.
Principal Risks:
As the value of the Portfolio's investments will fluctuate with market
conditions, so will the value of your investment in the Portfolio. Interest
rates on fixed rate investments fluctuate in response to economic factors. Rates
on the Portfolio's investments may vary, rising or falling with interest rates
generally. The value of the Portfolio's securities varies inversely with
interest rates, the amount of outstanding debt and other factors. This means
that the value of the Portfolio's investments generally increases as interest
rates fall and decreases as interest rates rise. Interest income of the
Portfolio will not be exempt from federal income tax with respect to taxable
obligations, including any municipal obligations that the Internal Revenue
Service ("IRS") has successfully asserted are not tax exempt obligations.
Special factors may negatively affect the value of municipal securities and, as
a result, the Portfolio's share price. These factors include political or
legislative changes and uncertainties relating to the tax status of the
securities or the rights of investors in the securities. The value of municipal
securities in the Portfolio can also be affected by market reaction to
legislative consideration of various tax reform proposals. There is also the
risk that issuers will prepay fixed rate obligations when interest rates fall,
forcing the Portfolio to reinvest in obligations with lower interest rates than
the original obligations.
You could lose money on your investment in the Portfolio or the Portfolio could
underperform other investments. Some of the Portfolio's holdings may
underperform its other holdings. There is no guarantee that the Portfolio can
achieve its investment objective.
You May Want to Invest in the Portfolio if:
you are looking to add a monthly income component to your portfolio
you are willing to accept the risks of price and dividend fluctuations
you are willing to accept lower potential returns in exchange for
income that is exempt from federal
income tax
You May Not Want to Invest in the Portfolio if:
you are using emergency reserves for investment
you will not benefit from income that is exempt from federal income
tax
Performance:
Since the Portfolios were not operational before this offering, no performance
bar chart or table has been presented.
Fees and Expenses of the Portfolios:
This table describes the fees and expenses that you may pay if you buy and hold
shares of the Portfolios.
Tax Exempt
Limited Term Limited Term
Portfolio Portfolio
Shareholder Fees: None None
(fees paid directly from your investment) *
Annual Portfolio Operating Expenses (expenses that are deducted from Portfolio
assets):
Management Fees .45% .45%
Distribution (12b-1) Expenses none none
Other Expenses** .30% .30%
---- ----
Total Annual Portfolio Operating Expenses .75% .75%
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* There are no sales charges for purchasing or redeeming Portfolio shares nor
fees to exchange to another Portfolio.
** Other Expenses are based on estimated amounts for the current fiscal year.
Expense Example:
This example is intended to help you compare the cost of investing in shares of
the Portfolios with the cost of investing in other mutual Funds. The example
assumes that (1) you invest $10,000 in the Portfolios for the time periods
shown, (2) you redeem your shares at the end of those periods, (3) your
investment has a 5% return each year and (4) the Portfolios' operating expenses
remain the same. Although your actual costs may be higher or lower, based on the
assumptions your costs would be:
1 Year 3 Years
------ -------
Limited Term $102 $318
Portfolio
Tax Exempt Limited Term $102 $318
Portfolio
ADDITIONAL INVESTMENT AND RISK INFORMATION
Purchases and sales are made for the Portfolios whenever necessary, in the
Advisor's opinion, to meet the Portfolios' objectives. This is expected to
result in a maximum average annual Portfolio turnover rate of not greater than
200%. A higher Portfolio turnover rate involves greater transaction expenses
which must be borne directly by the Portfolios (and thus, indirectly by their
shareholders) and affect the Portfolios' performance. In addition, a high rate
of portfolios turnover may result in the realization of larger amounts of
short-term capital gains which, when distributed to the Portfolios'
shareholders, are taxable to them.
LIMITED TERM PORTFOLIO
The Limited Term Portfolio will invest primarily in:
o U.S. Government obligations
o bank obligations, including:
o certificates of deposit
o bankers' acceptances
o other obligations issued or guaranteed by the 50 largest banks in the
United States. (For this purpose, banks are ranked by total deposits as
shown in their most recent audited financial statements).
o commercial paper
o other short term corporate obligations including:
o corporate bonds
o variable amount master demand notes
o participations in corporate loans
For a further description of the obligations in which the Portfolio may invest,
including the liquidity of participation in corporate loans, see "Investments
and Investment Techniques Common to Two or More Portfolios" in the Statement of
Additional Information. The Portfolio will consist only of securities with a
maximum dollar weighted average maturity of two years and a maximum maturity of
three years (three years and sixty days for new issues) at the time of
investment; however, securities with effective maturities in excess of one year
will only be purchased from domestic issuers.
The Portfolio seeks to maintain a current yield that is greater than that
obtainable from a portfolio of high quality money market obligations. However,
the Portfolio also has a greater level of risk than a money market fund because
it is more volatile. The Portfolio seeks to increase returns by actively
managing securities in the short term and intermediate term ranges. However, it
seeks to minimize market risk by employing a "laddered" portfolio approach as
opposed to a market timing approach. The laddered approach to portfolio
management involves the maintenance of securities positions of varying amounts
staggered at appropriate points along the fixed income yield curve in an effort
to maximize income and to minimize interest rate risk. As fixed rate securities
with longer maturities generally have higher interest rates, a portfolio
designed with a series of periodic maturities can generally produce higher
yields at the horizon of its maturity restriction, balanced by the interest rate
protection provided by shorter, more quickly maturing securities.
In addition, the Portfolio seeks investment in securities which the Advisor
believes to be undervalued and, therefore, have capital appreciation potential.
Any realized capital gains as well as interest income, will be subject to
federal income taxes. See "Management Strategies" in the Statement of Additional
Information.
From time to time, the assets of the Portfolio may be substantially invested in
short term obligations in order to attempt to reduce the volatility of the
Portfolio, moderate market risk, and minimize fluctuation in its net asset
value. Short term obligations may also be purchased pending investment of
proceeds of sales of Portfolio shares or Portfolio securities, or to maintain
liquidity to meet anticipated redemptions.
The Portfolio's rated debt securities must be rated Aa or higher by Moody's or
AA or higher by S&P, or the equivalent. Rated domestic and foreign commercial
paper must be rated Prime-1 by Moody's or A-1 by S&P or the equivalent. The
Portfolio may also invest in unrated securities if, in the opinion of the Fund's
Board of Directors, such securities are of comparable quality to the rated
securities in which the Portfolio may invest. These standards must be satisfied
at the time an investment is made. If the quality of the investment later
declines, the Portfolio may continue to hold the investment. However, if the
Portfolio holds any variable rate demand investments with stated maturities in
excess of one year, such investments must maintain their high quality rating or
must be sold from the Portfolio.
The Portfolio will only purchase high quality debt instruments, with varying and
longer maturities than a money market portfolio. Because interest rates on fixed
rate investments fluctuate in response to economic factors, rates on the
Portfolio's investments may vary, rising or falling with interest rates
generally. The value of the Portfolio's securities varies inversely with
interest rates, the amount of outstanding debt and other factors. This means
that the value of the Portfolio's investments generally increases as interest
rates fall and decreases as interest rates rise.
To the extent that the Portfolio is invested in foreign securities, such as
Eurodollar certificates, it may be subject to some foreign investment risk.
Eurodollar certificates of deposit may not be subject to the same regulatory
requirements as certificates issued by U.S. banks, and associated income may be
subject to the imposition of foreign taxes. For a more detailed discussion of
quality requirements applicable to certificates of deposit, bankers' acceptances
and other bank obligations, see "Investments and Investment Techniques Common to
Two or More Portfolios" in the Statement of Additional Information.
TAX EXEMPT LIMITED TERM PORTFOLIO
The Portfolio intends to invest all of its assets in tax exempt obligations;
however, it reserves the right to invest up to 20% of its assets in taxable
obligations (including securities the interest income on which may be subject to
alternative minimum tax). The Portfolio will invest in tax exempt securities
whose interest, in the opinion of bond counsel at the date of issuance, is
exempt from regular federal income tax. Such tax exempt obligations consist of:
o municipal bonds o municipal notes o municipal leases
Any market discount or capital gains will be subject to federal income taxes.
Interest on these securities may be subject to state and local income taxes.
The Portfolio will consist only of securities with a maximum dollar weighted
average maturity of three years and a maximum maturity of five years (five years
and sixty days for new issues) at the time of investment.
The Portfolio seeks to maintain a current yield that is greater than that
obtainable from a portfolio of short term, high quality tax exempt money market
obligations. The Portfolio seeks to increase returns by actively managing
securities in the short term and intermediate term ranges. However, it seeks to
minimize market risk by employing a "laddered" portfolio approach as opposed to
a market timing approach. The laddered approach to portfolio management involves
the maintenance of securities positions of varying amounts staggered at
appropriate points along the fixed income yield curve in an effort to maximize
income and to minimize interest rate risk. As fixed rate securities with longer
maturities generally have higher interest rates, a portfolio designed with a
series of periodic maturities can generally produce higher yields at the horizon
of its maturity restriction, balanced by the interest rate protection provided
by shorter, more quickly maturing securities. In addition, the Portfolio seeks
investments in securities which the Advisor believes to be undervalued and,
therefore, have capital appreciation potential.
From time to time, the assets of the Portfolio may be substantially invested in
short term municipal obligations in order to attempt to reduce the volatility of
the Portfolio, moderate market risk, and minimize fluctuation in its net asset
value. Short term obligations may also be purchased pending investment of
proceeds of sales of Portfolio shares or Portfolio securities, or to maintain
liquidity to meet anticipated redemptions.
The Portfolio's rated debt securities must be rated A or higher by Moody's or A
or higher by S&P, or the equivalent. Rated short term municipal securities must
be rated MIG-2, VMIG-2, P-2 or higher by Moody's or SP-2, A-2 or higher by S&P,
or the equivalent. The Portfolio may also invest in unrated securities if, in
the opinion of the Fund's Board of Directors, such securities are of comparable
quality to the rated securities in which the Portfolio may invest. These
standards must be satisfied at the time an investment is made. If the quality of
the investment later declines, the Portfolio may continue to hold the
investment. However, if the Portfolio holds any variable rate demand investments
with stated maturities in excess of one year, such investments must maintain
their high quality rating or must be sold from the Portfolio.
The Portfolio may purchase municipal obligations on a when-issued or delayed
delivery basis and may purchase municipal obligations with puts and stand-by
commitments. The Advisor currently does not anticipate entering into any
transaction which would result in income subject to federal income tax. However,
the Portfolio may invest up to 20% of the value of its total assets in taxable
securities (including securities the interest income on which may be subject to
alternative minimum tax) in certain circumstances, including hedging instruments
and repurchase and reverse repurchase agreements with member banks of the
Federal Reserve System and with broker-dealers who are recognized as primary
dealers in U.S. government securities by the Federal Reserve Bank of New York.
The Portfolio may also lend its securities. Income from taxable securities,
repurchase and reverse repurchase agreements and portfolio lending will be
subject to income taxation. The Portfolio may purchase certain privately placed
securities.
The Portfolio may also purchase zero coupon bonds. Zero coupon bonds do not
provide for the payment of any current interest and provide for payment at
maturity at par value unless sooner sold or redeemed. The market value of zero
coupon bonds is subject to greater fluctuations than coupon bonds in response to
changes in interest rates. For a discussion of the tax consequences of an
investment in zero coupon bonds, see "Taxes" in the Statement of Additional
Information.
The Portfolio will invest in high quality tax exempt municipal debt obligations,
with varying and longer maturities than a money market portfolio. Because
interest rates on fixed rate investments fluctuate in response to economic
factors, rates on the Portfolio's investments may vary, rising or falling with
interest rates generally. The value of the Portfolio's securities varies
inversely with interest rates, the amount of outstanding debt and other factors.
This means that the value of the Portfolio's investments generally increases as
interest rates fall and decreases as interest rates rise.
Interest income of the Portfolio will not be exempt from Federal income tax with
respect to the following:
taxable obligations
municipal obligations that the IRS has successfully asserted are not
tax exempt obligations
Payment of interest and preservation of capital are dependent upon the
continuing ability of issuers and/or obligors of municipal and public authority
debt obligations to meet their payment obligations. Special factors may
negatively affect the value of municipal securities, and, as a result, the
Portfolio's share price. These factors include political or legislative changes
and uncertainties relating to the tax status of the securities or the rights of
investors in the securities. The value of municipal securities in the Portfolio
can also be affected by market reaction to legislative consideration of various
tax reform proposals. See "Management Strategies" in the statement of Additional
Information. There is also the risk that issuers will prepay fixed rate
obligations when interest rates fall, forcing the Portfolio to re-invest in
obligations with lower interest rates than the original obligations. For a
detailed discussion of the quality requirements applicable to municipal bonds,
municipal leases and other municipal obligations, see "Investment and Investment
Techniques Common to Two or More Portfolios" in the Statement of Additional
Information.
MANAGEMENT OF THE PORTFOLIOS
The Advisor. The Advisor, located at One Corporate Center, Rye, NY 10580, is a
Delaware limited liability company organized in 1997 and is the successor
company to Gabelli-O'Connor Fixed Income Mutual Fund Management Co. formed in
1987. The Advisor makes investment decisions for the Portfolios and continuously
reviews and administers the Portfolios' investment program under the supervision
of the Fund's Board of Directors.
As compensation for its services and the related expenses it bears, the Advisor
will receive a fee equal to .30% of the value of the Portfolios' average daily
net assets. Any portion of the total fees received by the Advisor may be used by
the Advisor to provide shareholder and administrative services and for
distribution of Portfolio shares.
Portfolio Managers. Through its portfolio management team, the Advisor makes the
day-to-day investment decisions and continuously reviews, supervises and
administers the Portfolios' investment programs.
Distribution Arrangements. The Portfolios have each adopted a distribution and
service plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act, as amended.
Rule 12b-1 provides that an investment company which bears any direct or
indirect expense of distributing its shares must do so only in accordance with a
plan permitted by Rule 12b-1. There are no fees or expenses chargeable to the
Portfolios under the Plans and the Fund's Board of Directors has adopted the
Plans in case certain expenses of the Portfolios might be considered to
constitute indirect payment by the Portfolios of distribution expenses. If a
payment of advisory fees by the Fund to the Advisor should be deemed to be
indirect financing by the Fund of the distribution of its shares, such payments
are authorized by the Plans.
The Plans provide that the Advisor may make payments from time to time from its
own resources, which may include the advisory fee and past profits, to pay
promotional and administrative expenses in connection with the offer and sale of
shares of the Portfolios, including payments to participating organizations for
performing shareholder servicing and related administrative functions and for
providing assistance in distributing the Fund's shares. The Advisor, in its sole
discretion, will determine the amount of such payments made pursuant to the
Plans, provided that such payments will not increase the amount which the Fund
is required to pay to the Advisor for any fiscal year under the Advisory
Agreement in effect for the year.
PURCHASE OF SHARES
You can purchase the Portfolios' shares on any day the New York Stock Exchange
("NYSE") is open for trading (a "Business Day"). You may purchase shares through
Gabelli & Company, Inc. (the "Distributor"), directly from the Portfolios
through the Portfolios' transfer agent or through organizations that have
special arrangements with the Portfolio ("Participating Organizations").
Participating Organizations may charge additional fees and may require higher or
lower minimum investments or impose other limitations on buying and selling
shares.
By Mail or In Person. You may open an account by mailing a completed
subscription order form with a check or money order payable to "The
Treasurer's Fund, Inc." to:
By Mail By Personal Delivery
The Treasurer's Fund, Inc. The Treasurer's Fund, Inc.
P.O. Box 8308 c/o BFDS
Boston, MA 02266-8308 66 Brooks Drive
Braintree, MA 02184
You can obtain a subscription order form by calling 1-800-GABELLI
(1-800-422-3554). Checks made payable to a third party and endorsed by
the depositor are not acceptable. For additional investments, send a
check to the above address with a note stating your exact name and
account number, and the name of the Portfolio(s) you wish to purchase.
By Bank Wire. To open an account using the bank wire system, first telephone the
Fund at 1-800-GABELLI (1-800-422-3554) to obtain a new account number. Then
instruct a Federal Reserve System member bank to wire funds to:
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
ABA #011-0000-28
Re: The Treasurer's Fund, Inc.
REF DDA #99046187
Re: Name of Portfolio
Account #__________
Account of [Registered Owners]
If you are making an initial purchase, you should also complete and
mail a subscription order form to the address shown under "By Mail."
Note that banks may charge fees for wiring funds, although State Street
Bank and Trust Company ("State Street") will not charge you for
receiving wire transfers.
Through a Participating Organization. You may purchase shares through from a
Participating Organization. The Participating Organization will transmit a
purchase order and payment to State Street on your behalf. Participating
Organizations may send you confirmations of your transactions and periodic
account statements showing your investments in the Fund.
Share Price. The Portfolios sell their shares at the net asset value next
determined after the Fund receives your completed subscription order form and
your payment in Federal funds. See "Pricing of Portfolio Shares" for a
description of the calculation of net asset value.
Minimum Investments. Your minimum initial investment must be at least $100,000.
See "Retirement Plans" and "Automatic Investment Plan" regarding minimum
investment amounts applicable to such plans. There is no minimum for subsequent
investments. Participating Organizations may have different minimum investment
requirements.
Retirement Plans. The minimum initial investments for all retirement plans is
$1,000. There is no minimum for subsequent investments. Investors with IRA plans
and self-employed investors may purchase shares of the Portfolios through
tax-deductible contributions to their existing IRA account or their retirement
plans for self-employed persons, known as "Keogh" or "H.R. 10" plans. Portfolio
shares may also be a suitable investment for other types of qualified pension or
profit-sharing plans which are employer sponsored, including deferred
compensation or salary reduction plans known as "401(k) Plans" which give
participants the right to defer portions of their compensation for investment on
a tax-deferred basis until distributions are made from the plans.
Automatic Investment Plan. The Portfolios offer an automatic monthly investment
plan. There is no minimum monthly investment for accounts establishing an
automatic investment plan. Call 1-800-GABELLI (1-800-422-3554) for more details
about the plan.
Telephone Investment Plan. You may purchase additional shares of the Portfolios
by telephone if your bank is a member of the Automated Clearing House ("ACH")
system. You must also have a completed, approved Investment Plan application on
file with the Fund's transfer agent. There is a minimum of $100 for each
telephone investment. To initiate an ACH Purchase, please call 1-800-GABELLI
(1-800-422-3554) or 1-800-872-5365.
General. The Fund will not issue share certificates. The Fund reserves the right
to (i) reject any purchase order if, in the opinion of the Fund's management, it
is in the Fund's best interest to do so and (ii) suspend the offering of shares
for any period of time.
REDEMPTION OF SHARES
You can redeem shares of the Portfolios on any Business Day without a redemption
fee. The Portfolios may temporarily stop redeeming their shares when the NYSE is
closed or trading on the NYSE is restricted, when an emergency exists and the
Portfolios cannot sell their shares or accurately determine the value of their
assets, or if the Securities and Exchange Commission ("SEC") orders the
Portfolios to suspend redemptions.
The Portfolios redeem their shares at the net asset value next determined after
the Portfolios receive your redemption request. See "Pricing of Portfolio
Shares" for a description of the calculation of net asset value.
You may redeem shares through the Distributor, directly from the Fund through
its transfer agent, or through Participating Organizations.
By Letter. You may mail a letter requesting redemption of shares to:
The Treasurer's Fund., P.O. Box 8308, Boston, MA 02266-8308. Your
letter should state the name of the Portfolio(s), the dollar amount or
number of shares you are redeeming and your account number. You must
sign the letter in exactly the same way the account is registered, and
if there is more than one owner of shares, all must sign. A signature
guarantee is required for each signature on your redemption letter. You
can obtain a signature guarantee from financial institutions such as
commercial banks, brokers, dealers and savings associations. A notary
public cannot provide a signature guarantee.
By Telephone. You may redeem your shares in a direct registered
account by calling either 1-800-422-3554 or 1-800-872-5365
(617-328-5000 from outside the United States), subject to a $25,000
limitation. You may not redeem shares held through an IRA by telephone.
If State Street properly acts on telephone instructions and follows
reasonable procedures to protect against unauthorized transactions,
neither State Street nor the Fund will be responsible for any losses
due to telephone transactions. You may be responsible for any
fraudulent telephone order in your account as long as State Street or
the Fund takes reasonable measures to verify the order. You may request
that redemption proceeds be mailed to you by check (if your address has
not changed in the prior 30 days), forwarded to you by bank wire or
invested in another mutual fund advised by the Advisor (see "Exchanges
of Shares" below).
1. Telephone Redemption By Check. The Fund will make checks
payable to the name in which the account is registered and
normally will mail the check to the address of record within
seven days.
2. Telephone Redemption By Wire. The Fund accepts telephone
requests for wire redemption in amounts of at least $1,000.
The Fund will send a wire to either a bank designated on your
subscription order form or on a subsequent letter with a
guaranteed signature. The proceeds are normally wired on the
next Business Day.
Through a Participating Organization. You may redeem shares through a
Participating Organization which will transmit a redemption order to
State Street on your behalf. A redemption request received from a
Participating Organization will be effected at the net asset value next
determined after State Street receives the request.
Through the Automatic Cash Withdrawal Plan. You may automatically redeem shares
on a monthly, quarterly or annual basis. Please call the Distributor at
1-800-GABELLI (1-800-422-3554) for more information.
Involuntary Redemption. The Fund may redeem all shares in your account (other
than an IRA account) if their value falls below $1,000 as a result of
redemptions (but not as a result of a decline in net asset value). You will be
notified in writing and allowed 30 days to increase the value of your shares to
at least $1,000.
Redemption Proceeds. If you request redemption proceeds by check, the Fund will
normally mail the check to you within seven days after it receives your
redemption request. If you purchased your Portfolio shares by check, you may not
receive proceeds from your redemptions until the check clears, which may take up
to 15 days following purchase. While the Fund will delay processing the
redemption until the check clears, your shares will be valued at the next
determined net asset value after receipt of your redemption request.
EXCHANGE OF SHARES
You may exchange your shares in one Portfolio for shares of another Portfolio of
the Fund or for shares of any other open-end fund managed by the Advisor or its
affiliates, offered for sale in your state, based on their relative asset
values. The Fund also offers an automatic monthly exchange privilege. To obtain
a list of the funds whose shares you may acquire through exchange or details on
the automatic monthly exchange privilege call 1-800-GABELLI (1-800-422-3554).
In effecting an exchange:
you must meet the minimum purchase requirements for the fund
whose shares you purchase through exchange.
if you are exchanging into shares of a fund with a sales
charge, you must pay the sales charge at the time of exchange.
you may realize a taxable gain or loss.
you should read the prospectus of the fund whose shares you
are purchasing (call 1-800-GABELLI (1-800-422-3554) to obtain
the prospectus).
You may exchange shares by telephone, by mail or through a
Participating Organization.
Exchanges by Telephone. You may give exchange instructions by telephone by
calling 1-800-GABELLI (1-800-422-3554). You may not exchange shares by telephone
if you hold share certificates.
Exchanges by Mail. You may send a written request for exchanges to: The
Treasurer's Fund, Inc., P.O. Box 8308, Boston, MA 02266-8308. State your name,
your account number, the dollar value or number of shares you wish to exchange,
the name and class of the Portfolio whose shares you wish to exchange, and the
name of the Portfolio whose shares you wish to acquire.
Exchanges through the Internet. You may also give exchange instructions via the
Internet at www.gabelli.com.
We may modify or terminate the exchange privilege at any time. You will be
given notice 60 days prior to any material change in the exchange privilege.
PRICING OF PORTFOLIO SHARES
The Portfolios' net asset value per share is calculated on each Business Day.
The NYSE is currently scheduled to be closed on New Year's Day, Dr. Martin
Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence
Day, Labor Day, Thanksgiving Day and Christmas Day and on the preceding Friday
or subsequent Monday when a holiday falls on a Saturday or Sunday, respectively.
Each Portfolio's net asset value is determined as of the close of regular
trading on the NYSE, normally 4:00 p.m., Eastern Time, and is computed by
dividing the value of the Portfolio's net assets (i.e. the value of its
securities and other assets less its liabilities, including expenses payable or
accrued but excluding capital stock and surplus) by the total number of its
shares outstanding at the time the determination is made. The Portfolios
generally use market quotations in valuing their portfolio securities. If market
quotations are not available, prices will be based on fair value as determined
by the Directors.
DIVIDENDS AND DISTRIBUTIONS
Dividends of net investment income for each Portfolio will be declared daily on
each Business Day and paid monthly, and distributions of capital gains for the
Portfolios, if any, will be paid annually. All dividends and distributions will
be automatically reinvested for your account at net asset value in additional
shares of the Portfolio(s) unless you request otherwise. If you elect cash
distributions, notify the Fund at The Treasurer's Fund, Inc., P.O. Box 8308,
Boston, MA 02266-8308 or by telephone at 1-800-422-3554.
TAX INFORMATION
The Portfolios expect that their distributions will consist primarily of net
investment income or, if any, short-term and long-term capital gains. With
respect to the Limited Term Portfolio, dividends (including distributions from
net investment income and short-term capital gains) are taxable as ordinary
income and distribution of long-term capital gains. With respect to the Tax
Exempt Portfolio, distributions of tax exempt income are not subject to regular
federal income tax, but may be subject to the alternative minimum tax, and
distributions of interest on taxable obligations, as well as any market discount
or net short-term capital gains, are taxable as ordinary income. Distribution of
long-term capital gains, if any, will be taxable at different rates depending on
the length of time the Portfolio holds its assets. Depending on your residence
for tax purposes, distributions also may be subject to state and local taxes,
including withholding taxes. Dividends and distributions are treated in the same
manner for federal income tax purposes whether you receive them in cash or in
additional shares. Foreign shareholders generally will be subject to federal
withholding tax.
This summary of tax consequences is intended for general information only. You
should consult a tax advisor concerning the tax consequences of your investment
in the Portfolios.
FINANCIAL HIGHLIGHTS
Shares of the Limited Term and Tax Exempt Limited Term Portfolios have not
previously been offered and therefore do not have previous financial history.
[BACK COVER PAGE]
The Treasurer's Fund, Inc.
Limited Term Portfolio
Tax Exempt Limited Term Portfolio
For More Information:
For more information about the Portfolios, the following documents are available
free upon request:
Statement of Additional Information (SAI):
The SAI provides more detailed information about the Portfolios, including their
operations and investments policies. It is incorporated by reference, and is
legally considered a part of this Prospectus.
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You can get free copies of these documents and prospectuses of other funds in
the Gabelli family, or request other information and discuss your questions
about the Portfolios by contacting:
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The Treasurer's Fund, Inc.
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One Corporate Center
Rye, NY 10580
Telephone: 1-800-GABELLI (1-800-422-3554)
www.gabelli.com
You can review the Portfolios' reports and SAI at the Public Reference Room of
the Securities and Exchange Commission. Information on the operation of the
Public Reference Room may be obtained by calling the Commission at
1-202-942-8090. You can get text-only copies: o For a fee, by writing the
Commission's Public Reference Section, Washington, D.C. 20549-0102 or by calling
1-202-942-8090, or by electronic request at the following email address:
[email protected]
o Free from the Commission's Website at http://www.sec.gov
(Investment Company Act file no. 811-5347)
