THE TREASURER'S FUND
ANNUAL REPORT
OCTOBER 31, 2000(a)
TO OUR SHAREHOLDERS,
Starting in the Middle East and ending with the U.S. Supreme Court, it has
been quite a year for Treasury securities. The economic fundamentals have also
helped fuel this run as equities across the board have pointed to a slowing of
the red hot U. S. economy. The Federal Reserve Board's (the "Fed") Chairman Alan
Greenspan confirmed the Fed's thinking by softening his stance on inflation and
signaling that the risk now favors further slowing in the economy. When the
Federal Open Market Committee (FOMC) meets in December, most believe that the
bias will move to neutral with some whisperings of an ease in interest rates.
Most agree that the Fed's last move, an increase of 50 basis points in May, was
overly tight and are now calling for the removal of that tightening. In
addition, the market is now focusing on the new presidential administration's
fiscal policies. With no clear mandate, are the next two years simply on hold or
will a tremendous amount of reaching out be necessary to get anything done? All
these questions have caused an enormous amount of uncertainty, driving yields to
levels not seen since the economic crisis of 1998.
While recognizing that the economy is beginning to feel the effects of
more than a year of tight policy, we also feel that the Fed will be slow to
loosen its stance. A lowering of interest rates by 50 basis points is now the
Street consensus, with most predicting that level by mid-2001. However, in our
view, Treasuries look expensive at this juncture and have factored into their
price a far harder landing. Yes, the Fed may be set to ease rates, but
Treasuries will have to adjust to a possible 6% target.
INTERNET
Please visit us on the Internet. Our home page at HTTP://WWW.GABELLI.COM
contains information about Gabelli Asset Management Inc., the Gabelli Mutual
Funds, IRAs, 401(k)s, quarterly reports, closing prices and other current news.
You can send us e-mail at [email protected].
CONCLUSION
We thank you for your loyalty and, as always, pledge our best efforts on
your behalf as we seek to provide you with competitive returns. Please call us
at 1-800-GABELLI (1-800-422-3554) during the business day for further
information.
Sincerely,
/S/ SIGNATURE
JUDITH A. RANERI
Portfolio Manager
December 15, 2000
-------------------------------------------
(a) The Fund's fiscal year ends October 31.
<PAGE>
THE TREASURER'S FUND
<TABLE>
DOMESTIC PRIME MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- OCTOBER 31, 2000
------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- -------
<S> <C> <C>
COMMERCIAL PAPER -- 32.5%
$10,000,000 AESOP Funding Corp., 6.51%, 12/11/00 ........................... P1/A1 $ 9,927,667
10,000,000 ANC Rental Funding Corp., 6.51%, 11/09/00 ...................... P1/A1 9,985,533
10,000,000 Banc One Financial Corp., 6.50%, 11/06/00 ...................... P1/A1 9,990,972
10,000,000 Citibank Capital Markets Assets LLC, 6.48%, 11/06/00 ........... P1/A1+ 9,991,000
10,000,000 Falcon Asset Securitization Corp., 6.50%, 11/09/00 ............. P1/A1 9,985,556
10,000,000 Grand Funding Corp., 6.58%, 01/05/01 ........................... P1/A1+ 9,881,194
10,000,000 Island Finance Puerto Rico, 6.45%, 12/27/00 .................... P1/A1 9,899,667
10,000,000 Louis Dreyfus Corp., 6.50%, 11/14/00 ........................... P1/A1+ 9,976,528
10,000,000 Preferred Receivables Funding, 6.50%, 11/17/00 ................. P1/A1 9,971,111
10,000,000 Sweetwater Capital Corp., 6.51%, 11/20/00 ...................... P1/A1+ 9,965,642
10,000,000 Teachers Insurance and Annuity Association of America,
6.49%, 11/06/00 .............................................. P1/A1+ 9,990,986
10,000,000 Three Rivers Funding Corp., 6.50%, 11/17/00 .................... P1/A1 9,971,111
10,000,000 Verizon Network Funding, 6.48%, 11/21/00 ....................... P1/A1+ 9,964,000
------------
TOTAL COMMERCIAL PAPER ........................................................ 129,500,967
------------
ADJUSTABLE RATE SECURITIES -- 4.8%
5,000,000 California Housing Financial Agency Revenue,
6.60%, 11/01/00, Credit Support - FSA, 02/01/17+ ............. VMIG1/A1+ 5,000,000
1,900,000 Health Insurance Plan of Greater New York, Series B-1,
6.00%, 11/01/00, Letter of Credit - Morgan Guaranty Trust,
07/01/16+ .................................................... NR/A1+ 1,900,000
1,120,000 New Jersey Economic Development Authority, Series E-2,
6.00%, 11/02/00, Letter of Credit - LaSalle National Bank,
08/01/14+ .................................................... NR/A1+ 1,120,000
3,700,000 New Jersey Economic Development Authority, MSNBC/CNBC, Series A,
6.46%, 11/01/00, 10/01/21+ ................................... P1/A1+ 3,700,000
7,500,000 New York State Housing Finance Agency, Revenue,
66 West 38th Housing, Series B,
6.62%, 11/01/00, Letter of Credit - Bayerische Hypo - UND VER,
11/01/33+ .................................................... Aa3/NR 7,500,000
-------------
TOTAL ADJUSTABLE RATE SECURITIES ................................................ 19,220,000
-------------
LOAN PARTICIPATIONS -- 2.5%
10,000,000 GMAC Mortgage Corp., 6.57%, 11/01/00 NR/NR 10,000,000
-------------
U.S. GOVERNMENT AGENCY MORTGAGES -- 44.5%
20,400,000 Federal Farm Credit Bank, 6.47% to 6.55%, 11/01/00 to 02/01/01 20,399,811
75,740,000 Federal Home LoanBank, 5.13% to 7.05%, 11/01/00 to 09/12/01 .... 75,673,515
30,000,000 Federal Home Loan Mortgage Corp., 5.00% to 7.08%,
11/07/00 to 08/14/01 ......................................... 29,918,205
21,900,000 Federal National Mortgage Association, 5.25% to 8.25%,
12/18/00 to 10/05/01 ......................................... 21,896,137
25,000,000 Student LoanMarketingAssociation, 6.09% to 6.93%,
11/07/00 to 10/11/01 ......................................... 24,998,663
4,035,000 Tennessee Valley Authority, 6.00%, 11/01/00 .................... 4,035,000
-------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES ........................................ 176,921,331
-------------
REPURCHASE AGREEMENTS -- 17.3%
23,691,125 Bear Stearns & Co., 6.56%, dated 10/31/00, due 11/01/00,
proceeds at maturity $23,695,442 (a) ......................... 23,691,125
45,000,000 State Street Bank & Trust Co., 6.58%, dated 10/31/00,
due 11/01/00, proceeds at maturity $45,008,225 (b) ............ 45,000,000
-------------
TOTAL REPURCHASE AGREEMENTS ................................................... 68,691,125
-------------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
THE TREASURER'S FUND
<TABLE>
DOMESTIC PRIME MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 2000
------------------------------------------------------------------------------------------------
<CAPTION>
MARKET
VALUE
------
<S> <C> <C>
TOTAL INVESTMENTS (Cost $404,333,423) (c) ...................................... 101.7% $404,333,423
PAYABLE TO MANAGER ............................................................. (0.0) (101,624)
PAYABLE TO ADMINISTRATOR ....................................................... (0.0) (30,399)
PAYABLE FOR INVESTMENTS PURCHASED .............................................. (1.6) (5,992,002)
DIVIDENDS PAYABLE .............................................................. (0.1) (582,064)
OTHER ASSETS AND LIABILITIES (NET) ............................................. 0.0 149,439
------ -------------
NET ASSETS (398,033,595 shares of capital stock outstanding,
$0.001 par value, two billion shares authorized) ............................ 100.0% $397,776,773
====== ============
COMPOSITION OF NET ASSETS
Paid-in-capital ................................................................................ $397,783,235
Accumulated distribution in excess of net investment income .................................... (6,462)
------------
NET ASSETS ..................................................................................... $397,776,773
============
SHARES OF CAPITAL STOCK:
MONEY MARKET CLASS
Net Asset Value, offering and redemption price per share
(354,421,720 shares outstanding) .......................................................... $1.00
=====
CASH MANAGEMENT CLASS
Net Asset Value, offering and redemption price per share
(43,611,875 shares outstanding) ........................................................... $1.00
=====
-----------------------------------------------------
<FN>
+ Variable rate security. The short term date shown is the next rate change
date.
(a) Collateralized by U.S. Treasury STRIPS, due 02/15/13 to 05/15/21, market
value $24,165,091.
(b) Collateralized by Federal Farm Credit Bank, 0.00%, due 12/19/00, market
value $45,900,075.
(c) 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.
3
<PAGE>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- OCTOBER 31, 2000
--------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS -- 99.5%
ALABAMA - 5.3%
$2,000,000 Columbia Industrial Development Board, Pollution Control Revenue,
Alabama Power Company Project, Series D, 4.80%, 11/01/00,
10/01/22+ ..................................................... VMIG1/A1 $2,000,000
2,500,000 McIntosh Industrial Development Board, Environmental Improvement
Revenue Ref CIBC Specialty Series D, 4.60%, 11/01/00, 07/01/28+ NR/A1+ 2,500,000
1,000,000 Mobile Industrial Development Board, Exempt Facility Revenue,
Kimberly-Clark Tissue Project, 4.35%, 11/01/00, 04/01/15+ ..... A1+/P1 1,000,000
2,100,000 North Alabama Environmental Improvement Authority,
Pollution Control Revenue, Reynolds Metals Co.,
4.70%, Letter of Credit - San Paolo Bank, 12/01/00+ ........... P1/NR 2,100,000
1,000,000 Phenix County Industrial Development Board,
Environmental Improvement Revenue, Mead Coated Board Project,
4.75%, 11/01/00, Letter of Credit - Bayerische Vereinsbank,
03/01/31+ ..................................................... VMIG1/NR 1,000,000
1,100,000 Phenix County Industrial Development Board, Environmental
Improvement Revenue, Mead Coated Board Project, Series A,
4.75%, 11/01/00, Letter of Credit - Toronto Dominion Bank,
06/21/28+ ..................................................... NR/A1+ 1,100,000
1,000,000 Stevenson Industrial Development Board, Environmental Improvement
Revenue, Mead Corporation Project,
4.55%, 11/01/00, Letter of Credit - C.S. First Boston,
11/01/16+ ..................................................... NR/A1+ 1,000,000
900,000 Stevenson Industrial Development Board, Environmental Improvement
Revenue, The Mead Corporation Project, Series C,
4.65%, 11/01/00, Letter of Credit - Bank Austria, 11/01/33+ ... NR/A1+ 900,000
800,000 Stevenson Industrial Development Board, Environmental Improvement
Revenue, The Mead Corporation Project, Series D,
4.55%, 11/01/00, Letter of Credit - Bank Austria, 11/01/11+ ... NR/A1+ 800,000
-----------
TOTAL ALABAMA .................................................................. 12,400,000
-----------
ALASKA - 1.4%
1,000,000 Alaska Student Loan Corporation, Student Loan Revenue, Series A,
4.20%, AMBAC Insured, 07/01/01 ................................ Aaa/AAA 998,988
2,000,000 Anchorage Tax Anticipation Notes, 4.75%, 02/02/01 ............... MIG1/SP1+ 2,003,176
-----------
TOTAL ALASKA ................................................................... 3,002,164
-----------
ARIZONA - 1.7%
2,700,000 Scottsdale Industrial Development Authority Revenue,
Scottsdale Memorial Health Systems Project, Series B, 4.25%,
11/01/00, AMBAC Insured, SPA - Credit Local de France,
09/01/22+ ..................................................... VMIG1/A1+ 2,700,000
1,150,000 Tempe Union High School District Number 213 Project, Series B,
5.00%, FGIC Insured, 07/01/01 ................................. Aaa/AAA 1,154,772
-----------
TOTAL ARIZONA ................................................................. 3,854,772
-----------
CALIFORNIA - 0.9%
1,900,000 California Higher Education Loan Authority Inc., Student Loan
Revenue, Series C, 4.45%, 07/01/01, Letter of Credit -
Student Loan Marketing, 07/01/02+ ............................. VMIG1/A1+ 1,900,000
-----------
COLORADO - 0.9%
2,000,000 Colorado State Tax and Revenue Anticipation Notes, 5.00%,
06/27/01 ...................................................... SP1+/F1+ 2,009,344
-----------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 2000
--------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS (CONTINUED)
CONNECTICUT - 1.1%
$2,500,000 Connecticut Special Assessment Unemployment Compensation,
Adv Fund Series C, 4.35%, 07/01/01, FGIC Insured, 11/15/01+ .. VMIG1/A1+ $ 2,500,000
------------
DELAWARE - 3.1%
3,300,000 Delaware State Economic Development Authority Revenue, Delmarva
Power & Light Co. Project, 4.85%, 11/01/00, 10/01/17+ ........ VMIG1/A1 3,300,000
3,500,000 Delaware State Economic Development Authority Revenue, Gas
Facilities, Delmarva Power & Light Co. Project, 4.85%,
11/01/00, 10/01/29+ .......................................... VMIG1/A1 3,500,000
------------
TOTAL DELAWARE .............................................................. 6,800,000
------------
FLORIDA - 1.6%
2,000,000 Lee County Industrial Development Authority, Health Care
Facilities Revenue, Cypress Cove Health Park - Series C,
4.30%, 11/01/00, Letter of Credit - Kredietbank NV, 10/01/04+ VMIG1/NR 2,000,000
1,600,000 St. Lucie County, Pollution Control Revenue, Florida Power &
Light Company Project, 4.55%, 11/01/00, 03/01/27+ ............ VMIG1/A1+ 1,600,000
------------
TOTAL FLORIDA ............................................................... 3,600,000
------------
GEORGIA - 2.8%
1,800,000 Burke County Development Authority, Pollution Control Revenue,
Georgia Power Company Plant Vogtle 1st, 4.60%, 11/01/00,
04/01/32+ .................................................... VMIG1/A1/F1+ 1,800,000
3,940,000 Burke County Development Authority, Pollution Control Revenue,
Ogelthorpe Power Corporation Project, Series A, 4.30%,
11/01/00, FGIC Insured, SPA - Bayerische Landesbank, 01/01/16+ VMIG1/A1+/F1+ 3,940,000
400,000 Hapeville Development Authority, Industrial Development Revenue,
Hapeville Hotel Limited, 4.55%, 11/01/00, Letter of Credit -
Deutsche Bank A.G., 11/01/15+ ................................ P1/NR 400,000
------------
TOTAL GEORGIA ................................................................ 6,140,000
------------
HAWAII - 2.2%
4,900,000 Hawaii State Department Budget and Finance, Queens Health System,
Series A, 4.40%, 11/01/00, SPA - Morgan Guaranty Trust,
07/01/26+ .................................................... VMIG1/A1+ 4,900,000
------------
ILLINOIS - 4.6%
3,000,000 Illinois Development Finance Authority, Olin Corp. Project,
Series D, 4.60%, 11/01/00, Letter of Credit - Wachovia Bank of
South Carolina, 03/01/16+ .................................... NR/A1+ 3,000,000
1,000,000 Illinois Educational Facilities Authority, Revs ACI/Cultural,
4.45%, 11/01/00, Letter of Credit - American National Bank &
Trust, 07/01/29+ ............................................. NR/A1 1,000,000
2,000,000 Illinois Health Facilities Authority Revenue, Loyola University
Health System, Series B, 4.25%, 11/01/00, MBIA Insured,
SPA - Credit Suisse First Boston, 07/01/24+ .................. VMIG1/A1+ 2,000,000
1,100,000 Illinois Housing Development Authority, Illinois Center
Apartments, 4.35%, 11/01/00, Credit Support - Metropolitan
Life Guaranty, 01/01/08+ ..................................... NR/A1+ 1,100,000
2,070,000 Illinois Housing Development Authority, Multi-Family Housing -
Camelot, 4.60%, 11/01/00, MBIA Insured, SPA - Bank One N.A.,
05/01/27+ .................................................... VMIG1/A1+ 2,070,000
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 2000
--------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS (CONTINUED)
ILLINOIS (CONTINUED)
$1,000,000 Illinois State Toll Highway Authority, Toll Highway Priority
Revenue, Series B, 4.25%, 11/01/00, MBIA Insured, Letter of
Credit - Societe Generale, 01/01/10+ ......................... VMIG1/A1+/F1+ $ 1,000,000
-----------
TOTAL ILLINOIS ................................................. 10,170,000
-----------
KANSAS - 0.5%
1,100,000 Olathe Industrial Revenue, Garmin International Inc. Project,
4.50%, 11/01/00, Letter of Credit - Bank of America, 01/01/25+ NR/A1+ 1,100,000
-----------
KENTUCKY - 2.8%
870,000 Daviess County Exempt Facilities Revenue, Kimberly-Clarke Tissue
Project, 4.50%, 11/01/00, 08/01/29+ .......................... NR/A1+ 870,000
2,000,000 Kentucky Asset/Liability Common General Fund Revenue,
Tax & Revenue Anticipation Notes, Series A, 5.25%, 06/27/01 .. MIG1/SP1+/F1+ 2,008,857
2,000,000 Kentucky Association of Counties Advance Revenue Cash Flow
Borrowing Tax and Revenue Anticipation Notes, 5.00%, 06/27/01 MIG1/SP1+/F1+ 2,006,289
1,255,000 Kentucky Development Financial Authority Revenue,
Pooled Loan Program, Series A, 4.35%, 11/02/00, FGIC Insured,
SPA - Landesbank Hessen, 12/01/15+ ........................... VMIG1/AAA+ 1,255,000
-----------
TOTAL KENTUCKY ............................................................... 6,140,146
-----------
MARYLAND - 3.0%
1,900,000 Howard County Consolidated Public Improvement, Series A,
4.50%, 02/15/01 .............................................. Aaa/AAA/AAA 1,901,563
3,800,000 Montgomery County Housing Opportunity Common Housing Revenue,
Kensington Park Issue II, 4.40%, 11/01/00, MBIA Insured,
SPA - First National Bank, 07/01/28+ ......................... VMIGI/A1 3,800,000
900,000 Northeast Maryland Waste Disposal Authority Resource Recovery
Revenue, Hartford County Resource, 4.15%, 11/01/00, AMBAC
Insured, SPA - Credit Local de France, 01/01/08+ ............. VMIG1/A1+ 900,000
-----------
TOTAL MARYLAND .............................................................. 6,601,563
-----------
MASSACHUSETTS - 0.9%
2,000,000 Massachusetts State Health and Educational Facilities
Authority Revenue, Capital Assets Program, Series D, 4.55%,
10/02/00, MBIA Insured, SPA - State Street Bank and Trust Co.,
01/01/35+ .................................................... VMIG1/A1+ 2,000,000
-----------
MICHIGAN - 6.5%
800,000 Cornell Township Economic Development Corp., Environmental
Improvement Revenue, Mead Escanaba Paper Co., 4.55%, 11/01/00,
Letter of Credit - Bank of America, 11/01/16+ ................ NR/A1+ 800,000
1,350,000 Delta County Economic Development Corporation, Environmental
Improvement Revenue, Mead Escanaba Paper Co. Project,
4.70%, 11/01/00, Letter of Credit - Union Bank of Switzerland,
12/01/23+ .................................................... NR/A1+ 1,350,000
4,000,000 Michigan Higher Education Student Loan, Series XII-B,
4.35%, 11/01/00, AMBAC Insured, SPA - Kredietbank NV, 10/01/13+ VMIG1/A1 4,000,000
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 2000
--------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS (CONTINUED)
MICHIGAN (CONTINUED)
$4,000,000 Michigan State Housing Development Authority, Limited Obligation
Revenue, Laurel Valley Project, 4.40%, 11/01/00, Letter of
Credit - Bank One Michigan, 12/01/07+ ........................ VMIG1/NR $ 4,000,000
1,255,000 Michigan State Strategic Fund, Limited Obligation Revenue Reserve,
4.55%, 11/01/00, Letter of Credit - Barclays Bank PLC, 09/01/30+ P1/A1+ 1,255,000
1,800,000 Midland County Economic Development Corporation, Limited
Obligation Revenue, Dow Chemical Co. Project, Series A, 4.70%,
11/01/00, 12/01/23+ .......................................... P1/A1 1,800,000
1,200,000 Wayne Charter County Airport Revenue, Detroit Metropolitan County
Project, Series B, 4.35%, 11/01/00, Letter of Credit -
Landesbank - Hessen - THRGN, 12/01/16+ ....................... VMIG1/A1+ 1,200,000
-----------
TOTAL MICHIGAN ............................................................... 14,405,000
-----------
MINNESOTA - 2.6%
1,700,000 Golden Valley Industrial Development Revenue, Unicare Homes
Project, 4.40%, 11/01/00, Letter of Credit - Bank of America,
09/01/14+ .................................................... NR/A1+ 1,700,000
2,000,000 Rochester Health Care Facilities, Mayo Foundation Mayo Medical
Center Series B, 4.20%, 11/01/00 ............................. NR/A1+ 2,000,000
2,000,000 Rochester Health Care Facilities, Mayo Foundation Mayo Medical
Center Series B, 4.10%, 12/04/00 ............................. NR/A1+ 2,000,000
-----------
TOTAL MINNESOTA .............................................................. 5,700,000
-----------
MISSOURI - 2.0%
2,040,000 Missouri State Development Financial Board Recreation Facility,
YMCA Greater St. Louis Project, Series B, 4.35%, 11/02/00,
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, 4.30%, 11/01/00, Letter of
Credit - Morgan Guaranty Trust, 11/01/19+ .................... NR/A1+ 2,320,000
-----------
TOTAL MISSOURI ............................................................... 4,360,000
-----------
NEBRASKA - 0.9%
1,900,000 Lancaster County Hospital Authority Number 1 Hospital Revenue,
Bryan Memorial Hospital Project, 4.25%, 11/01/00, MBIA Insured,
SPA - Commerzbank A.G., 06/01/12+ ............................ VMIG1/A1+ 1,900,000
-----------
NEVADA -- 2.1%
4,002,000 Clark County Airport Improvement Revenue, Series A, 4.25%,
11/01/00, MBIA Insured, Letter of Credit - Bayerische Hypo
Vereinsbank, Credit Local de France, Chase Manhattan Bank,
07/01/12+ .................................................... VMIG1/A1+ 4,002,000
580,000 Clark County Airport Improvement Revenue, Lien Series A-2,
4.60%, 11/01/00, Letter of Credit - Union Bank of Switzerland,
07/01/25+ .................................................... VMIG1/A1+ 580,000
-----------
TOTAL NEVADA ................................................................. 4,582,000
-----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 2000
--------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS (CONTINUED)
NEW JERSEY - 3.2%
$5,000,000 New Jersey State Turnpike Authority Revenue, Series D, 4.15%,
11/01/00, FGIC Insured, Letter of Credit - Societe Generale,
01/01/18+ .................................................... VMIG1/A1+/F1+ $ 5,000,000
2,000,000 New Jersey State Turnpike Authority Revenue, Series E,
3.95%, 11/07/00, MBIA Insured, 01/01/30+ ..................... Aaa/AAA 2,000,000
-----------
TOTAL NEW JERSEY .............................................................. 7,000,000
-----------
NEW YORK - 5.9%
4,830,000 Long Island Power Authority, Electric System Revenue, Series 6,
4.55%, 11/01/00, Letter of Credit - Morgan Guaranty Trust, ABN
Amro Bank N.V., 05/01/33+ .................................... VMIG1/A1+/F1+ 4,830,000
600,000 New York City General Obligation Unlimited, Series B, Subseries
B4, 4.55%, 11/01/00, MBIA Insured, SPA - Credit Agricole
Indosez, 08/15/23+ ........................................... VMIG1/A1+/F1+ 600,000
600,000 New York City Municipal Water Finance Authority, Water and Sewer
System Revenue Series C, 4.55%, 11/01/00, SPA - Dexia - Credit
Local France, 06/15/33+ ...................................... VMIG1/A1+/F1+ 600,000
2,100,000 New York State Energy Research and Development Authority
Pollution Control Revenue, New York Electric Gas, Series D,
4.55%, 11/01/00, Letter of Credit - Bank One Chicago NA,
10/01/29+ .................................................... VMIG1/A1+ 2,100,000
3,200,000 New York State Energy Research and Development, Pollution Control
Revenue, New York State Electric & Gas, Series C, 4.55%,
11/01/00, Letter of Credit - Morgan Guaranty Trust, 06/01/29+ VMIG1/A1+ 3,200,000
1,300,000 New York State Local Government Assistance Corporation, Series G,
4.00%, 11/01/00, Letter of Credit - Bank of Nova Scotia,
04/01/25+ .................................................... VMIG1/A1+ 1,300,000
400,000 New York State Dormitory Authority Revenue, Beverwyck Inc.
Project, 4.20%, 11/01/00, Letter of Credit - Fleet National
Bank, 07/01/25+ .............................................. VMIG1/A1 400,000
-----------
TOTAL NEW YORK .............................................................. 13,030,000
-----------
NORTH CAROLINA - 3.3%
3,700,000 Charlotte Airport Revenue, Series A, 4.35%, 11/01/00, MBIA
Insured, SPA - Chase Manhattan Bank, 07/01/17+ ............... VMIG1/A1+ 3,700,000
2,500,000 Charlotte-Mecklenberg Hospital Authority, North Carolina Health
Care Systems, Series C, 4.25%, 11/02/00, Liquidity Facility -
Bank of America, 01/15/26+ ................................... VMIG1/A1+ 2,500,000
1,100,000 North Carolina Educational Facilities Finance Agency Revenue,
Elon College Project, 4.30%, 11/01/00, Letter of Credit - Bank
of America, 01/01/19+ ........................................ VMIG1/A1+ 1,100,000
-----------
TOTAL NORTH CAROLINA ......................................................... 7,300,000
-----------
NORTH DAKOTA - 1.6%
1,075,000 Grand Forks Hospital Facilities Revenue, United Hospital
Obligation Group PJ, 4.65%, 11/01/00, Letter of Credit -
LaSalle National Bank, 12/01/16+ ............................. VMIGI/NR 1,075,000
2,500,000 North Dakota State Housing Finance Agency Revenue, Housing
Finance Program, Home Mortgage Series D, 4.45%, 08/27/01 ..... MIG1/NR 2,500,000
-----------
TOTAL NORTH DAKOTA ........................................................... 3,575,000
-----------
OHIO - 0.5%
1,000,000 Ohio State Water Development Authority Revenue, Environmental
Mead Corporation, Series B, 4.55%, 11/01/00, Letter of Credit
- Bank of America, 11/01/15+ ................................. NR/A1+ 1,000,000
-----------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 2000
--------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS (CONTINUED)
OREGON - 5.5%
$2,000,000 Oregon State Housing and Community Services Department Mortgage
Revenue, Single Family Mortgage Program, Series G, 4.40% ..... Aa2/NR $ 2,000,000
1,225,000 Port of Portland Oregon Airport Revenue, Portland International
Airport, Series 12C, 4.00%, FGIC Insured, 07/01/01 ........... Aaa/AAA 1,220,974
3,300,000 Port of Portland Pollution Control, Reynolds Metals, 4.70%,
10/01/00, Letter of Credit - San Paolo Bank, 12/01/09+ ....... P1/NR 3,300,000
5,800,000 Port of Portland Special Obligation Revenue, Horizon Air
Insurance Inc. Project, 4.75%, 10/02/00, Letter of Credit -
Bank of Montreal, 06/15/27+ .................................. NR/A1+ 5,800,000
-----------
TOTAL OREGON ................................................................. 12,320,974
-----------
PENNSYLVANIA - 6.2%
3,700,000 Delaware County Industrial Development Authority, Airport
Facilities Revenue, United Parcel Service Project, 4.55%,
11/01/00, 12/01/15+ .......................................... AAA/A1+ 3,700,000
1,100,000 Delaware Valley Regional Finance Authority, Local Government
Revenue, Series A, 4.30%, 11/01/00, Letter of Credit - Credit
Suisse First Boston, 12/01/19+ ............................... VMIG1/A1+ 1,100,000
1,165,000 Pennsylvania Energy Development Authority, B&W Ebensburg Project,
4.35%, 11/01/00, Letter of Credit - Landesbank Hessen-THRGN,
12/01/11+ .................................................... Aaa/NR 1,165,000
6,800,000 Philadelphia Water & Waste Water Revenue, Series B, 4.25%,
11/01/00, AMBAC Insured, SPA - Commerzbank A.G., 08/01/27+ .. VMIG1/A1+/F1 6,800,000
1,000,000 Quakertown General Authority Revenue, Pooled Financing Program,
Series A, 4.30%, 11/07/00, Letter of Credit - PNC Bank N.A.,
06/01/28+ .................................................... VMIG1/A1 1,000,000
-----------
TOTAL PENNSYLVANIA ........................................................... 13,765,000
-----------
SOUTH CAROLINA - 3.2%
2,500,000 Rock Hill Utility Systems Revenue, Series B, 4.25%, 11/01/00,
FSA Insured, SPA - First Union National Bank, 01/01/25+ ...... VMIG1/A1 2,500,000
2,600,000 South Carolina Educational Facilities Authority, Furman
University Project, Series B, 4.40%, 11/02/00, MBIA Insured,
SPA - Wachovia Bank of South Carolina, 10/01/26+ ............. VMIG1/A1/F1+ 2,600,000
2,000,000 Spartanburg County School District Number 007, Bond Participation
Notes, 4.75%, 02/15/01 ....................................... MIG1/NR 2,003,621
-----------
TOTAL SOUTH CAROLINA ......................................................... 7,103,621
-----------
TENNESSEE - 2.5%
1,450,000 Clarksville Public Building Authority Revenue, Pooled Financing -
City of Murfreesboro, 4.35%, 11/02/00, Letter of Credit -
Bank of America, 07/01/11+ ................................... VMIG1/NR 1,450,000
1,400,000 Clarksville Public Building Authority Revenue, Pooled Financing -
Tennessee Municipal Bond Fund, 4.35%, 11/02/00, Letter of
Credit - Bank of America, 10/01/25+ .......................... NR/A1+ 1,400,000
2,500,000 Hamilton County, Tennessee Aquarium Project, 4.35%, 11/02/00,
Letter of Credit - NationsBank of Georgia, 07/01/21+ ......... NR/A1+ 2,500,000
300,000 Metropolitan Nashville Airport Authority Special Facilities
Revenue, American Airlines Project, Series B, 4.55%, 11/01/00,
Letter of Credit - Bayerische Landesbank, 10/01/12+ .......... NR/A1+ 300,000
-----------
TOTAL TENNESSEE .............................................................. 5,650,000
-----------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 2000
--------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS (CONTINUED)
TEXAS - 6.9%
$ 800,000 Bexar County Housing Financing Corporation Multi-Family
Guaranteed Mortgage Revenue, Creightons Mill Development
Series A, 4.50%, 11/01/00, Letter of Credit - Westdeutsche
Landesbank, 08/01/06+ ........................................ NR/A1+ $ 800,000
2,750,000 Harris County Housing Finance Corp., Multi-Family Housing
Revenue, GTD Mortgage Idlewood Park Development, Series A,
4.50%, 11/01/00, Letter of Credit - Westdeutsche Landesbank,
06/01/05+ .................................................... NR/A1+ 2,750,000
700,000 Metropolitan Higher Education Authority Inc., Texas Higher
Education Revenue, University of Dallas Project, 4.40%,
11/01/00, Letter of Credit - Chase Bank of Texas N.A.,
05/01/19+ .................................................... NR/A1/F1+ 700,000
1,200,000 North Central Texas Health Facilities Development Corporate
Revenue, Presbyterian Medical Center Project, Series D, 4.65%,
11/01/00, MBIA Insured, SPA - Chase Bank of Texas N.A.,
12/01/15+ .................................................... VMIGI/A1+ 1,200,000
2,000,000 Port Arthur Navigation District Revenue, BASF Corporation Project,
Series A, 4.35%, 01/10/01 .................................... P1/A1 2,000,000
3,950,000 South Texas Higher Education Authority Inc., 4.35%, 11/01/00,
MBIA Insured, SPA - Sallie Mae, 12/01/27+ .................... VMIG1/NR 3,950,000
4,000,000 Texas State Tax and Revenue Anticipation Notes, 5.25%, 08/31/01 MIG1/SP1+/F1+ 4,030,864
-----------
TOTAL TEXAS .................................................................. 15,430,864
-----------
UTAH - 0.6%
500,000 Morgan County Solid Waste Disposal Revenue, Holnam Inc. Project,
4.60%, 11/01/00, Letter of Credit - Wachovia Bank, 08/01/31+ VMIG1/A1+ 500,000
900,000 Utah State Board of Regents Student Loan Revenue, Series C,
4.40%, 11/01/00, AMBAC Insured, SPA - Dresdner Bank, 11/01/13+ VMIG1/A1+ 900,000
-----------
TOTAL UTAH ................................................................... 1,400,000
-----------
VIRGINIA - 0.9%
1,000,000 Henrico County Industrial Development Authority Revenue,
Hermitage Health Facilities, 4.35%, 11/01/00, Letter of Credit
- Bank of America, 08/01/23+ ................................. NR/A1+ 1,000,000
1,000,000 Richmond Industrial Development Authority Revenue, Virginia
Union University Project, 4.35%, 11/01/00, Letter of Credit -
Bank of America NA, 12/01/07+ ................................ NR/A1+ 1,000,000
-----------
TOTAL VIRGINIA ............................................................... 2,000,000
-----------
WASHINGTON - 7.7%
2,175,000 Port Bellingham Industrial Development Corp., Sauder Woodcraft
Corp. Project, 4.50%, 11/01/00, Letter of Credit - Bank of
America, 12/01/14+ ........................................... Aa1/NR 2,175,000
500,000 Seattle Municipal Light and Power Revenue, 4.60%, 11/01/00 ..... Aa2/AA 500,000
1,500,000 Seattle Municipal Light and Power Revenue, 4.25%, 11/01/00,
Letter of Credit - Morgan Guaranty Trust, 06/01/21+ .......... VMIG1/A1+ 1,500,000
5,000,000 Washington State Public Power Supply System, Project Number 2,
Electric Revenue, Series 2A-1, 4.25%, 11/01/00, MBIA Insured,
SPA - Credit Suisse First Boston, 07/01/12+ .................. VMIG1/A1+ 5,000,000
3,000,000 Washington State Public Power Supply System, Project Number 2,
Series A, 6.30%, 07/01/01 .................................... Aa1/NR 3,034,608
5,000,000 Washington State Public Power Supply System, Project Number 3,
4.25%, 11/01/00, Letter of Credit - Morgan Guaranty Trust,
07/01/18+ .................................................... VMIG1/A1+ 5,000,000
-----------
TOTAL WASHINGTON ............................................................ 17,209,608
-----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS (CONTINUED) -- OCTOBER 31, 2000
--------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT MARKET
AMOUNT RATINGS* VALUE
--------- -------- ------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS (CONTINUED)
WISCONSIN - 2.3%
$1,000,000 Pulaski Community School District Promissory Notes, 4.45%,
03/01/01 ...................................................... MIG1/SP1+ $ 1,000,471
4,100,000 Wisconsin SSM Healthcare, 4.25%, 11/08/00 ....................... A1+/NR 4,100,000
------------
TOTAL WISCONSIN ............................................................. 5,100,471
------------
WYOMING - 2.3%
1,900,000 Lincoln County Pollution Control Revenue, Exxon Mobil Corporation
Project, Series B, 4.55%, 11/01/00 ............................ P1/A1+ 1,900,000
1,900,000 Lincoln County Pollution Control Revenue, Exxon Mobil Corporation
Project, Series B, 4.65%, 11/01/00, Exxon Corp. Credit Support:
GTY Agreement, 07/01/17+ ...................................... P1/A1+ 1,900,000
1,200,000 Lincoln County Pollution Control Revenue, Exxon Mobil Corporation
Project, Series D, 4.55%, 11/01/00, 11/01/14+ ................. P1/A1+ 1,200,000
------------
TOTAL WYOMING ................................................................. 5,000,000
------------
TOTAL SHORT-TERM MUNICIPAL OBLIGATIONS ........................................ 220,950,527
------------
TOTAL INVESTMENTS (Cost $220,950,527) (a) ....................................... 99.5% 220,950,527
PAYABLE TO MANAGER .............................................................. (0.0) (57,451)
PAYABLE TO ADMINISTRATOR ........................................................ (0.0) (17,186)
DIVIDENDS PAYABLE ............................................................... (0.1) (204,206)
OTHER ASSETS AND LIABILITIES (NET) .............................................. 0.6 1,439,775
----- ------------
NET ASSETS (222,154,858 shares of capital stock outstanding,
$0.001 par value, two billion shares authorized) ............................. 100.0% $222,111,459
===== ============
COMPOSITION OF NET ASSETS
Paid-in-capital ................................................................................ $222,114,159
Accumulated net realized loss on investments ................................................... (2,700)
------------
NET ASSETS ..................................................................................... $222,111,459
============
SHARES OF CAPITAL STOCK:
MONEY MARKET CLASS
Net Asset Value, offering and redemption price per share
(216,125,446 shares outstanding) .......................................................... $1.00
=====
CASH MANAGEMENT CLASS
Net Asset Value, offering and redemption price per share
(6,029,412 shares outstanding) ............................................................ $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
Corporation 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 Manager, 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>
THE TREASURER'S FUND
<TABLE>
TAX EXEMPT MONEY MARKET PORTFOLIO -- STATEMENT OF NET ASSETS -- OCTOBER 31, 2000
--------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS - 61.2%
$40,000,000 U.S. Treasury Bills, 6.02% to 6.34%, due 12/14/00 to 01/25/01 .. $39,607,674
10,000,000 U.S. Treasury Notes, 4.875%, due 03/31/01 ...................... 9,942,633
-----------
TOTAL U.S. TREASURY OBLIGATIONS .............................................. 49,550,307
-----------
REPURCHASE AGREEMENTS -- 39.1%
10,000,000 ABN AMRO, 6.53%, dated 10/31/00, due 11/01/00,
proceeds at maturity, $10,001,814 (a) ........................ 10,000,000
11,616,883 Bear Stearns & Co., 6.56%, dated 10/31/00, due 11/01/00,
proceeds at maturity, $11,619,000 (b) ........................ 11,616,883
10,000,000 State Street Bank & Trust Co., 6.53%, dated 10/31/00,
due 11/01/00, proceeds at maturity, $10,001,814 (c) .......... 10,000,000
-----------
TOTAL REPURCHASE AGREEMENTS .................................................. 31,616,883
-----------
TOTAL INVESTMENTS (Cost $81,167,190) (d) ....................................... 100.3% 81,167,190
PAYABLE TO MANAGER ............................................................. (0.0) (20,664)
PAYABLE TO ADMINISTRATOR ....................................................... (0.0) (6,181)
DIVIDENDS PAYABLE .............................................................. (0.2) (116,136)
OTHER ASSETS AND LIABILITIES (NET) ............................................. 0.1 (77,872)
----- -----------
NET ASSETS (80,957,319 shares of capital stock outstanding,
$0.001 par value, two billion shares authorized) ............................ 100.0% $80,946,337
===== ===========
COMPOSITION OF NET ASSETS
Paid-in-capital ................................................................ $80,948,462
Accumulated distribution in excess of net investment income .................... (2,125)
-----------
NET ASSETS ..................................................................... $80,946,337
===========
SHARES OF CAPITAL STOCK:
MONEY MARKET CLASS
Net Asset Value, offering and redemption price per share
(76,635,868 shares outstanding) ........................................... $1.00
=====
CASH MANAGEMENT CLASS
Net Asset Value, offering and redemption price per share
(4,321,451 shares outstanding) ............................................ $1.00
=====
--------------------------------------------------------------------------------
<FN>
(a) Collateralized by U.S. Treasury Note, 7.63%, due 02/15/07, market value
$10,210,057.
(b) Collateralized by U.S. Treasury Bond, 3.375% due 01/15/07 and U.S. Treasury
STRIPS, due 02/15/10, market value $12,051,182.
(c) Collateralized by U.S. Treasury Note, 4.75%, due 11/15/08, market value
$10,204,175.
(d) Aggregate cost for Federal tax purposes.
</FN>
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE TREASURER'S FUND
<TABLE>
STATEMENT OF OPERATIONS -- YEAR ENDED OCTOBER 31, 2000
-------------------------------------------------------------------------------------------------------------------
<CAPTION>
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................................. $24,179,230 $7,966,494 $5,021,924
----------- ---------- ----------
EXPENSES:
Investment advisory fees ................................. 1,181,407 599,152 261,700
Administration fees ...................................... 357,360 158,056 79,230
Service fees -- Money Market Class ....................... 247,153 135,610 52,317
Shareholder services fees ................................ 212,996 38,832 41,267
Custodian fees ........................................... 77,484 41,580 39,200
Legal and audit fees ..................................... 75,162 34,111 30,323
Directors' fees .......................................... 33,910 14,803 7,824
Registration fees ........................................ 45,861 10,351 20,439
Shareholder communications expenses ...................... 40,088 11,040 9,711
Miscellaneous expenses ................................... 22,531 13,048 21,840
----------- ---------- ----------
TOTAL EXPENSES ........................................... 2,293,952 1,056,583 563,851
----------- ---------- ----------
Custodian fee credits .................................... -- (3,079) --
----------- ---------- ----------
TOTAL NET EXPENSES ....................................... 2,293,952 1,053,504 563,851
----------- ---------- ----------
NET INVESTMENT INCOME .................................... 21,885,278 6,912,990 4,458,073
----------- ---------- ----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................. 12,870 -- 22,140
----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..... $21,898,148 $6,912,990 $4,480,213
=========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE TREASURER'S FUND
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<CAPTION>
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,
2000 1999 2000 1999 2000 1999
-------------- -------------- ------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income ..... $ 21,885,278 $ 17,921,719 $ 6,912,990 $ 5,059,049 $ 4,458,073 $ 4,899,219
Net realized gain (loss)
on investments ........... 12,870 167 -- (2,700) 22,140 44,590
-------------- -------------- ------------- ------------ ------------ --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 21,898,148 17,921,886 6,912,990 5,056,349 4,480,213 4,943,809
-------------- -------------- ------------- ------------ ------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Money Market Class ....... (20,755,894) (17,972,297) (6,835,565) (5,061,709) (4,303,872) (4,901,323)
Cash Management Class .... (1,129,384) -- (78,195) -- (154,201) --
-------------- -------------- ------------- ------------ ------------ --------------
(21,885,278) (17,972,297) (6,913,760) (5,061,709) (4,458,073) (4,901,323)
-------------- -------------- ------------- ------------ ------------ --------------
Net realized gain on
investment transactions
Money Market Class ....... (12,859) -- -- -- (21,353) (44,590)
Cash Management Class .... (11) -- -- -- (787) --
-------------- -------------- ------------- ------------ ------------ --------------
(12,870) -- -- -- (22,140) (44,590)
-------------- -------------- ------------- ------------ ------------ --------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS ............ (21,898,148) (17,972,297) (6,913,760) (5,061,709) (4,480,213) (4,945,913)
-------------- -------------- ------------- ------------ ------------ --------------
CAPITAL SHARE TRANSACTIONS
($1.00 PER SHARE):
Proceeds from shares sold
Money Market Class ....... 1,525,752,537 3,318,246,393 627,555,886 584,568,905 291,277,152 1,207,585,473
Cash Management Class .... 66,991,813 -- 14,674,563 -- 74,243,877 --
-------------- -------------- ------------- ------------ ------------ --------------
1,592,744,350 3,318,246,393 642,230,449 584,568,905 365,521,029 1,207,585,473
-------------- -------------- ------------- ------------ ------------ --------------
Proceeds from reinvestment
of dividends
Money Market Class ....... 19,952,259 17,078,577 6,691,036 4,939,651 4,172,640 4,224,966
Cash Management Class .... 1,037,770 -- 70,208 -- 90,598 --
-------------- -------------- ------------- ------------ ------------ --------------
20,990,029 17,078,577 6,761,244 4,939,651 4,263,238 4,224,966
-------------- -------------- ------------- ------------ ------------ --------------
Cost of shares redeemed
Money Market Class ....... (1,607,295,762) (3,277,183,482) (613,744,076) (607,513,281) (327,708,707) (1,213,795,134)
Cash Management Class .... (24,602,550) -- (8,715,360) -- (70,021,903) --
-------------- -------------- ------------- ------------ ------------ --------------
(1,631,898,312) (3,277,183,482) (622,459,436) (607,513,281) (397,730,610) (1,213,795,134)
-------------- -------------- ------------- ------------ ------------ --------------
Net increase (decrease)
in net assets from
share transactions ....... (18,163,933) 58,141,488 26,532,257 (18,004,725) (27,946,343) (1,984,695)
-------------- -------------- ------------- ------------ ------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS ............ (18,163,933) 58,091,077 26,531,487 (18,010,085) (27,946,343) (1,986,799)
NET ASSETS:
Beginning of period ....... 415,940,706 357,849,629 195,579,972 213,590,057 108,892,680 110,879,479
-------------- -------------- ------------- ------------ ------------ --------------
End of period ............. $ 397,776,773 $ 415,940,706 $ 222,111,459 $195,579,972 $ 80,946,337 $ 108,892,680
============== ============== ============= ============ ============ ==============
Undistributed (Distribution
in excess of) net investment
income ................... $ (4,404) $ (4,404) $ -- $ 770 $ (2,125) $ (2,125)
-------------- -------------- ------------- ------------ ------------ --------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE TREASURER'S FUND -- FINANCIAL HIGHLIGHTS
<TABLE>
DOMESTIC PRIME MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
<CAPTION>
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- ---------------------------------------
Net
Net Asset Realized and Net
Value, Net Unrealized Total from Net Realized
Period Ended Beginning Investment Gain on Investment Investment Gain on Total
December 31, of Period Income (a) Investments Operations Income Investments Distributions
------------ --------- ---------- ------------- ---------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET CLASS
2000 $1.00 $0.055 $0.000(e) $0.055 $(0.055) $(0.000)(e) $(0.055)
1999 1.00 0.045 -- 0.045 (0.045) -- (0.045)
1998 1.00 0.050 -- 0.050 (0.050) -- (0.050)
1997 1.00 0.050 -- 0.050 (0.049) (0.001) (0.050)
1996 1.00 0.049 -- 0.049 (0.049) -- (0.049)
CASH MANAGEMENT CLASS
2000(c) $1.00 $0.030 $0.000(e) $0.030 $(0.030) $(0.000)(e) $(0.030)
<CAPTION>
DISTRIBUTIONS
TO RATIOS TO AVERAGE NET ASSETS
SHAREHOLDERS AND SUPPLEMENTAL DATA
----------------- ----------------------------------------------------------
Ratio of Net Ratio of Ratio of
Net Asset Net Assets, Investment Operating Interest
Value, End of Income Expenses Expense to
Period Ended End of Total Period to Average to Average Average Net
December 31, Period Return+ (in 000's) Net Assets (a) Net Assets (b) Assets
------------ --------- ------- --------- -------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET CLASS $1.00 5.68% $354,350 5.55% 0.59% --
2000 1.00 4.65 415,941 4.55 0.50 --
1999 1.00 5.15 357,850 5.03 0.54 --
1998 1.00 5.19 280,339 4.99 0.52 --
1997 1.00 5.12 236,812 4.93 0.54 0.01%
1996
CASH MANAGEMENT CLASS $1.00 3.04% $ 43,427 5.62%(d) 0.52%(d) --
2000(c)
---------------------------------------------------------------------
<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. Total return for the period of less
than one year is not annualized.
(a) Net investment income before fees waived by the administrator for the year
ended October 31, 1996 was $0.048.
(b) Operating expense ratios after custodian fee credits on cash balances
maintained with the custodian and fees waived by the administrator for the
year ended October 31, 1996 was 0.52%.
(c) From commencement of offering on May 1, 2000.
(d) Annualized.
(e) Amount represents less than $0.0005 per share.
</FN>
<CAPTION>
TAX EXEMPT MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------- -----------------------------------------------
Period Ended Net Asset Value, Net Investment Net Investment Net Asset Value,
December 31, Beginning of Period Income Income End of Period Total Return+
------------ ------------------- -------------- -------------- ---------------- -------------
<S> <C> <C> <C> <C> <C>
MONEY MARKET CLASS
2000 $1.00 $0.035 $(0.035) $1.00 3.52%
1999 1.00 0.027 (0.027) 1.00 2.71
1998 1.00 0.030 (0.030) 1.00 3.08
1997 1.00 0.031 (0.031) 1.00 3.12
1996 1.00 0.030 (0.030) 1.00 3.04
CASH MANAGEMENT CLASS
2000(b) $1.00 $0.019 $(0.019) $1.00 1.93%
<CAPTION>
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------
Ratio of Net Ratio of Operating
Period Ended Net Assets, End of Investment Income Expenses to Average
December 31, Period (in 000's) to Average Net Assets Net Assets (a)
------------ ------------------ -------------------- -------------------
<S> <C> <C> <C>
MONEY MARKET CLASS
2000 $216,082 3.47% 0.53%
1999 195,580 2.67 0.49
1998 213,590 3.04 0.50
1997 192,834 3.07 0.53
1996 158,507 3.00 0.54
CASH MANAGEMENT CLASS
2000(b) $ 6,029 3.54%(c) 0.46%(c)
--------------------------------------------------------------------------------
<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. Total return for the period of less than
one year is not annualized.
(a) Operating expense ratios after custodian fee
credits on cash balances maintained with the custodian for the years ended
October 31, 2000, 1999, 1998, 1997 and 1996 were 0.53%, 0.48%, 0.48%, 0.52% and
0.52%, respectively.
(b) From commencement of offering on May 1, 2000.
(c) Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
THE TREASURER'S FUND -- FINANCIAL HIGHLIGHTS
<TABLE>
U.S. TREASURY MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------------
<CAPTION>
Selected data for a share of capital stock outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------------- --------------------------------------
Net
Net Asset Realized and Net
Value, Net Unrealized Total from Net Realized
Period Ended Beginning Investment Gain on Investment Investment Gain on Total
December 31, of Period Income Investments Operations Income Investments Distributions
------------ --------- ---------- ------------ ---------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET CLASS
2000 $1.00 $0.052 $0.000(d) $0.052 $(0.052) $(0.000)(d) $(0.052)
1999 1.00 0.042 -- 0.042 (0.042) -- (0.042)
1998 1.00 0.048 0.001 0.049 (0.048) (0.001) (0.049)
1997 1.00 0.047 0.001 0.048 (0.047) (0.001) (0.048)
1996 1.00 0.047 -- 0.047 (0.047) -- (0.047)
CASH MANAGEMENT CLASS
2000(b) $1.00 $0.028 $0.000(d) $0.028 $(0.028) $(0.000)(d) $(0.028)
<CAPTION>
DISTRIBUTIONS
TO RATIOS TO AVERAGE NET ASSETS
SHAREHOLDERS AND SUPPLEMENTAL DATA
------------------- ----------------------------------------
Ratio of Net Ratio of
Net Asset Net Assets, Investment Operating
Value, End of Income Expenses to
Period Ended End of Total Period to Average Average Net
December 31, Period Return+ (in 000's) Net Assets Assets (a)
------------ ---------- ------- ----------- ---------- ------------
MONEY MARKET CLASS
2000 $1.00 5.28% $ 76,634 5.11% 0.65%
1999 1.00 4.34 108,893 4.19 0.56
1998 1.00 5.03 110,879 4.83 0.51
1997 1.00 4.91 85,204 4.74 0.61
1996 1.00 4.83 90,761 4.70 0.63
CASH MANAGEMENT CLASS
2000(b) $1.00 2.81% $ 4,312 5.17%(c) 0.59%(c)
---------------------------------------
<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. Total return for the period of less than
one year is not annualized.
(a) Operating expense ratios after custodian fee
credits on securities lending income for the year ended October 31, 1997 was
0.60%. Operating expense ratios after custodian fee credits on cash balances
maintained with the custodian for the years ended October 31, 1996 and 1995 were
0.60% and 0.54%, respectively.
(b) From commencement of offering on May 1, 2000.
(c) Annualized.
(d) Amount represents less than $0.0005 per share.
</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 (each
a "Portfolio" and collectively, the "Portfolios"). Shares of these Portfolios
are offered as either (i) the Gabelli Cash Management Class (the "New Class of
Shares" or "Cash Management Class") or (ii) the U.S. Treasury Money Market
Class, the Domestic Prime Money Market Class and the Tax Exempt Money Market
Class (the "Existing Class of Shares" or "Money Market Class"). The New Class of
Shares is identical to the Existing Class of Shares except that the Existing
Class of Shares are offered to organizations which are compensated for enhanced
transfer agency services. The Global Money Market Portfolio, the Limited Term
Portfolio and the Tax Exempt Limited Term Portfolio are currently 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 Gabelli Fixed Income LLC
(the "Advisor"). Under the terms of a typical repurchase agreement, a 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 Portfolio 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 Portfolio
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
17
<PAGE>
THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
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
Portfolio, timing differences and differing characterization of distributions
made by the Portfolio.
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 Advisor.
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
equivalent amount of interest earned by the Custodian on such uninvested cash
balances. For financial reporting purposes for the twelve months ended October
31, 2000, custodian fee credits were $3,079. 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, 2000, the Tax Exempt Money Market Portfolio had net capital
loss carryforwards for Federal income tax purposes of $2,700 expiring in 2007.
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 the Advisor which provides
that the Fund will pay the Advisor 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 Advisor 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.
As of March 1, 2000, Gabelli & Company, Inc. (the "Distributor") serves as the
exclusive Distributor of the shares of each Portfolio pursuant to its
Distribution Agreement with the Fund. Prior to March 1, 2000, Gabelli Fixed
Income Distributors, Inc. served as the Fund's Distributor.
19
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
--------------------------------------------------------------------------------
SHAREHOLDERS AND BOARD OF DIRECTORS
THE TREASURER'S FUND, INC.
We have audited the accompanying statement 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, 2000, 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 auditing standards generally
accepted in the United States. 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. Our procedures included confirmation of securities
owned as of October 31, 2000 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. as of
October 31, 2000, the results of its 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 accounting principles generally accepted in the United
States.
/S/ SIGNATURE
ERNST & YOUNG LLP
New York, New York
December 4, 2000
--------------------------------------------------------------------------------
2000 TAX NOTICE TO SHAREHOLDERS (UNAUDITED)
For the fiscal year ended October 31, 2000, none of the ordinary income
dividends qualify for the dividend received deduction available to
corporations. For the fiscal year ended October 31, 2000, 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 U.S. Treasury Money
Market Portfolio during the period from November 1, 1999 through October 31,
2000 which was derived from U.S. Treasury securities was 0.0%, 0.0% and
53.5%, respectively. Such income may be exempt from state and local tax 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 U.S. Treasury securities. The U.S. Treasury Money Market
Portfolio derived 53.5% of its ordinary income from U.S. Treasury securities
during fiscal year 2000, and thus, met the requirement. The Domestic Prime
Money Market Portfolio and Tax Exempt Money Market Portfolio did not meet
this strict requirement in fiscal year 2000.
--------------------------------------------------------------------------------
<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 Arthur V. Ferrara
FORMER SENIOR VICE PRESIDENT FORMER CHAIRMAN AND
DOLLAR DRY DOCK SAVINGS BANK CHIEF EXECUTIVE OFFICER
GUARDIAN LIFE INSURANCE
COMPANY OF AMERICA
Anthony J. Colavita Karl Otto Pohl
ATTORNEY-AT-LAW FORMER PRESIDENT
ANTHONY J. COLAVITA, P.C. DEUTSCHE BUNDESBANK
Richard N. Daniel Anthony R. Pustorino
FORMER CHAIRMAN AND CERTIFIED PUBLIC ACCOUNTANT
CHIEF EXECUTIVE OFFICER PROFESSOR, PACE UNIVERSITY
HANDY & HARMAN
Mary E. Hauck Werner J. Roeder, MD
(RETIRED) SENIOR PORTFOLIO MEDICAL DIRECTOR
MANAGER LAWRENCE HOSPITAL
GABELLI-O'CONNOR FIXED INCOME
MUTUAL FUND MANAGEMENT CO.
Robert C. Kolodny, MD Anthonie C. van Ekris
PHYSICIAN, AUTHOR AND LECTURER MANAGING DIRECTOR
GENERAL PARTNER OF KBS BALMAC INTERNATIONAL, INC.
PARTNERSHIP
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 & Company, Inc.
CUSTODIAN
Custodial Trust Company
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
-------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of
The Treasurer's Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
-------------------------------------------------------------------------------
GAB TRS AR00 SR
THE
TREASURER'S
FUND,
INC.
Money Market Portfolios
-----------------------
Domestic Prime
Tax Exempt
U.S. Treasury
ANNUAL REPORT
OCTOBER 31, 2000
