<PAGE>
M.S.D.&T. Funds, Inc.
- --------------------------------------------------------------------------------
Semi-Annual Report
NOVEMBER 30, 1999
<PAGE>
Table of Contents
Chairman's Letter i
Funds Reviews ii
Statements of Net Assets
Prime Money Market Fund 1
Government Money Market Fund 3
Tax-Exempt Money Market Fund 5
Growth & Income Fund 9
Equity Income Fund 11
Equity Growth Fund 14
International Equity Fund 16
Diversified Real Estate Fund 20
Limited Maturity Bond Fund 22
Total Return Bond Fund 25
Maryland Tax-Exempt Bond Fund 29
Intermediate Tax-Exempt Bond Fund 32
National Tax-Exempt Bond Fund 35
Investment Abbreviations 39
Statements of Operations 40
Statements of Changes in Net Assets 43
Financial Highlights 49
Notes to Financial Statements 57
Important Tax Information 67
<PAGE>
Dear Shareholder,
It is a pleasure to present the semi-annual report for M.S.D.&T. Funds, Inc.
for the six-month period ended November 30, 1999. The report includes finan-
cial information and fund synopses for the Equity, Bond and Money Market
Funds. Also included is a Statement of Net Assets for each of the Funds list-
ing the securities held as of November 30, 1999.
One of the most significant changes in the investment landscape during the
past six months was the complete reversal by the Federal Reserve Board (the
Fed) of their actions from last fall. Beginning in June, the Fed initiated a
series of three twenty-five basis point increases in the targeted Federal
Funds rate. This had the initial effect of placing the broad market equity in-
dices under some pressure during the third quarter of 1999. However, led by
the technology and communication sectors, the S&P 500 Index has come roaring
back. The bond market continues to trend toward higher yields with the long
Treasury bond trading in a range of 6.0% to 6.5%.
The Funds' adviser believes that economic growth in the year 2000 should
mildly decelerate from the current torrid pace. The mix of activity is also
likely to change since domestic demand should slow as a result of rising in-
terest rates while export growth should pick up. Investors should be aware of
the lack of breadth in the domestic equity market, particularly as it relates
to technology stocks. International equities may be well positioned to con-
tinue their bull run as global activity is likely to maintain its upswing.
Bond markets have discounted much of the bad news on inflation and may present
attractive investment opportunities.
The pages that follow discuss the objectives, performance, structure and
strategy of each of the M.S.D.&T. Funds. We appreciate your investment in the
Funds and welcome any questions or comments.
Best Regards,
/s/ Leslie B. Disharoon
Leslie B. Disharoon
Chairman and President
Shares of M.S.D.&T. Funds, Inc. are not bank deposits or obligations of, or
guaranteed, endorsed, or otherwise supported by Mercantile-Safe Deposit &
Trust Company, its parent company or its affiliates, and such shares are not
federally insured by the U.S. Government, the Federal Deposit Insurance Corpo-
ration, the Federal Reserve Board or any other governmental agency. Investment
in the Funds involves risk, including the possible loss of principal.
The Money Market Funds are neither insured not guaranteed by the FDIC or any
other government agency. Although the Money Market Funds strive to maintain a
net asset value of $1.00 per share, it is possible to lose money by investing
in the Funds.
Yields will fluctuate as market conditions change. Past performance is not a
guarantee of future results.
For more complete information on M.S.D.&T. Funds, Inc., including expenses and
ongoing fees, please call 1-800-551-2145 to receive a prospectus, which should
be read carefully before investing. BISYS Fund Services serves a the Funds'
distributor.
<PAGE>
M.S.D.&T. Growth & Income Fund
Media headlines suggested a strong performance by U.S. equity markets during
the six months ended November 30, 1999. A widely used measure, the S&P 500 In-
dex, returned 7.36%. This gain was largely due to a handful of stocks, partic-
ularly those with high growth characteristics in the technology and communica-
tions sectors. The Dow Jones Industrial Average returned 3.82% and the
M.S.D.&T. Growth & Income Fund returned 4.56% over the same period(1).
The adoption in November 1999 of the Financial Services Modernization Act her-
alds an era of financial reform in the U.S. The range of market opportunities
for financial companies has greatly increased. The Fund initiated positions in
Goldman Sachs (0.6%), American Insurance Group (1.0%) and Morgan Stanley Dean
Witter (0.6%)(2). The adviser expects these companies to be among the main
beneficiaries of the increased globalization of financial markets.
The two most important sectors of concentration for the Growth & Income Fund
are the technology sector at 25.8% and the healthcare sector at 19.6% of total
net assets. The technology sector continues to benefit from increased spending
for productivity improvements and Internet-related issues. The Fund initiated
investments in Sun Microsystems (1.2%) and Cabletron (0.8%). Healthcare has
displayed good growth trends in the past and continues to enjoy strong charac-
teristics relative to many other industries. The adviser continues to monitor
the legislative agenda, which adds some uncertainty to this sector.
The top five holdings at November 30, 1999 were Cisco (6.3%), IBM (4.1%),
Intel (3.4%), Merck (3.3%) and General Electric (3.2%). The Fund's focus re-
mains on high quality companies with consistent and strong earnings and divi-
dend growth.
M.S.D.&T. Equity Income Fund
The Equity Income Fund, like other value investors, has continued to find the
current stock market environment difficult. As a result, for the six months
ended November 30, 1999 the Fund posted a total return of-4.47%(1).
The Fund's top performers during the period included 3Com (1.2%), Intel
(1.4%), General Electric (1.8%), Autodesk (0.8%) and Electronic Data Services
(1.4%)(2). Four of these stocks are among the Fund's relatively modest expo-
sure to the technology sector. However, since technology stocks now comprise
24% of the S&P 500 Index, and investor fascination with the subject continues
unabated, the major indices have shown very positive returns. As a conse-
quence, the Fund's under weighting in technology has been an unrewarding
strategy. On the other hand, earnings disappointments or just plain disinter-
est have decimated most of the rest of the stock market universe. The Fund's
underachievers for the six months were Aetna (1.3%), UNUMProvident (0.9%),
Lockheed Martin (0.9%), Raytheon (1.1%) and J.C. Penney (0.9%).
While impressed with the "new economy," the adviser is concerned about the
prices being paid for some Internet stocks and the hyper enthusiasm for ini-
tial public offerings. Thus, the adviser continues to focus on some of the ap-
parent attractive opportunities in the "old economy."
ii
<PAGE>
M.S.D.&T. Equity Growth Fund
For the six months ended November 30, 1999, the Equity Growth Fund returned
11.77% as compared to 7.36% for the S&P 500 Index(1). On a total return basis,
the Fund's best performing stocks for the period were Gateway (3.0%) with a
151% total return, EMC (0.9%) which returned 67%, Teradyne (2.2%) which ad-
vanced 65%, and Cisco Systems (3.2%) gaining 64%(2). On the down side, Boston
Scientific (0.8%) was down 44%, UNUMProvident (1.3%) was off 39%, and Williams
Companies (1.0%) lost 34%. As evidenced by the recent performance, the winners
outpaced the losers.
The past six months have seen the reversal of last year's interest rate cuts
by the Fed with higher interest rates, dollar weakness versus the yen, and the
perceived threat of high inflation. A number of companies reported bad news or
missed earnings estimates, thus suffering significant declines in market val-
ue. For example, a number of the financial stocks held by the Fund have fallen
due to lower earnings, their decline overwhelming the euphoria of banking re-
form legislation.
Technology stocks have continued to drive this market higher with the NASDAQ
Composite (a technology-laden Index) up 35% since May 31, 1999, five times the
S&P 500's return of 7.36%. Going forward, the adviser believes that the rapid
rise in stock prices which has been driven by low inflation and declining in-
terest rates should slow, leaving growth in earnings as the primary catalyst
to higher stock prices. The adviser has been concentrating the Fund's holdings
in market sectors it believes will provide rapid earnings growth going for-
ward.
M.S.D.&T. International Equity Fund(3)
For the six months ended November 30, 1999, the International Equity Fund pro-
duced a total return of 20.71%(1). During the same period, the Fund's bench-
mark, the MSCI All Country World ex-US Index, gained 16.80%.
The MSCI Japan Index stocks rose 15.4% in local terms during the period. Due
to a substantial gain in the value of the yen relative to the U.S. dollar,
this translated to a 37.5% return in U.S. dollars. Government actions designed
to boost the economy and significant corporate restructuring activities were
key factors in the Japanese market's performance. This activity included sev-
eral mega-mergers such as that of Fuji Bank, Daiichi Kangyo Bank and the In-
dustrial Bank of Japan. Among the smaller developed markets, Australia was a
significant laggard, subdued by rising bond yields. The Fund's overweight po-
sition in Singapore was reduced following strong performance there. Proceeds
were reinvested in Hong Kong, reflecting a more positive view of that mar-
ket(2).
Continental European markets were mixed during the period. Overall, the MSCI
Europe ex-UK Index gained 11.5% in U.S. dollar terms, reflecting a 74.0% gain
in Finland and a 2.8% decline in Italy. Sweden and France were the best per-
forming of the major markets while Germany, the Netherlands and Switzerland
lagged. Telecommunications and technology stocks were the best performing
stocks across the region. In the UK, stocks posted only modest gains as a re-
sult of concerns over interest rates. Short-term interest rates were boosted
twice during the six months to 5.5%.
Emerging markets enjoyed relatively strong performance during the period.
These markets benefited from declining bond yields, debt upgrades and a more
optimistic outlook for global growth. Turkey, Brazil, Indonesia, Korea and
Mexico were the best performing markets.
iii
<PAGE>
M.S.D.&T. Diversified Real Estate Fund
The REIT market has shown continued declines over the six months ended Novem-
ber 30, 1999 after a brief rally earlier in the year. That rally was driven by
news reports that Warren Buffett had invested in several REITs and a signifi-
cant investment was made by a large public pension fund. Since then, interest
in and cash flow to the sector has declined as investors sought higher returns
in other sectors.
The Diversified Real Estate Fund returned -11.03% for the six months ended No-
vember 30, 1999, which on a relative performance basis was 3.07% better than
the -14.10% return of the Wilshire Real Estate Index(1). Calendar year-to-date
performance has been -2.75% for the Fund versus -6.69% for the Wilshire Index.
The Fund remains overweight in office and apartment sectors and underweight in
the retail sector versus the Index(2). Year-to-date, the office and apartment
sectors have returned -4.3% and -5.9%, respectively, while the retail sector
has returned -11.0%. The adviser made minor adjustments to the Fund's alloca-
tion strategy over the past two months by slightly increasing the Fund's posi-
tion in the retail and healthcare sectors. While the adviser views these sec-
tors as representing good relative value due to their sharp price declines
earlier in the year, the adviser does not intend to shift from the concentra-
tion in office and apartment sectors. The adviser also does not intend to add
to the hotel sector at this time because of the unfavorable supply versus de-
mand characteristics.
REITs currently trade at very attractive discounts to the value of the under-
lying real estate and with historically high dividend yields approaching 9%,
according to the NAREIT listing of all publicly traded REITs as of November
30, 1999. These yields are not only well covered, they also are likely to in-
crease since many REITs are distributing the minimum amount of cash allowed
and will need to increase dividends to maintain their REIT status.
The M.S.D.&T. Limited Maturity Bond Fund
The six months ended November 30, 1999 have been difficult for fixed income
investors. After hitting a cyclical low point approximately a year ago, domes-
tic interest rates have been rising on an irregular path. Several factors are
driving the rise in bond yields: world economic growth, a cyclical rise in the
domestic inflation rate and a gradually less accommodating Central Bank. In
particular, the actions of the Fed to reverse the easing of monetary policy
last fall with a series of three twenty-five basis point increases in the Fed-
eral Funds rate have diminished total returns within the short to intermediate
sector of the yield curve. On average, Treasury yields within the intermediate
coupon curve rose 0.55% in the period.
The Limited Maturity Bond Fund returned a modest 1.74% during the period,
slightly behind the return of the Lehman Mutual Fund Short (1-5 year)
Govt/Corp Index, which returned 1.85% over the same period(1). Longer average
life indexes, such as the Lehman Intermediate Govt/Corp Index, fared worse
with more subdued returns.
During the period, the average life of the Fund was increased from 2.6 to 3.0
years as interest rates rose. Additionally, corporate bond exposure was in-
creased in both the "AA" and "A" credit sectors as yield spreads to Treasuries
widened during the summer with a heavy supply of investment grade offerings.
By the end of the six month period, yield spreads on corporate securities con-
tracted somewhat as the supply of new issues waned.
iv
<PAGE>
M.S.D.&T. Total Return Bond Fund
Interest rates continued their upward drift during the six months ended Novem-
ber 30, 1999. Importantly, the Fed raised the target for the Federal Funds
rate three times during the period; fully reversing last year's easing. The
U.S. economy has consistently posted growth rates above the consensus fore-
cast, which has unsettled bond buyers. Labor markets have continued to tighten
with the unemployment rate falling to thirty-year lows. At the same time, com-
modity prices (in particular, oil) have increased, resulting in rising infla-
tion.
For the six months ended November 30, 1999, the Total Return Bond Fund posted
a total rate of return of 0.80% while its benchmark, the Lehman Brothers Ag-
gregate Bond Index, returned 0.72%(1).
During the past six months the Total Return Bond Fund has consistently main-
tained a more defensive posture to rising interest rates than that of its
benchmark. As yields have increased, the Fund has extended its average life
(effective duration). Importantly, as inter-market yield spreads widened to
cyclical highs during the summer, the Fund moved out of U.S. Treasury securi-
ties and short-term reserves into Federal agency and corporate bonds(2). This
shift in the Fund's assets is a result in a change in investment strategy from
a directional move upward in interest rates to relative yield spreads moving
back toward their historical averages.
M.S.D.&T. Maryland Tax-Exempt Bond Fund(4)
For the six months ended November 30, 1999, the Maryland Tax-Exempt Bond Fund
generated a total return of -1.84%(1). For the same period, the Lehman Broth-
ers Municipal Bond Index posted a total return of -1.86%.
During the period, investments were made in securities having relatively
longer maturities to capture the higher yields offered further out on the
yield curve(2). Investors within the Maryland municipal market continued to
absorb any new supply. A few smaller counties issued general obligation debt,
which assisted institutional investors in meeting their various diversifica-
tion requirements. However, the generally strong demand influenced a much
lower yield environment when compared to national municipal yields.
The adviser believes that Maryland municipal debt may be among the better per-
forming sectors in the municipal market in the coming months. In continued ex-
pectation of generally rising interest rates, the adviser intends to maintain
the Fund's duration slightly shorter than that of the Lehman Municipal Index.
v
<PAGE>
M.S.D.&T. Intermediate Tax-Exempt Bond Fund(4)
For the six months ended November 30, 1999, the Intermediate Tax-Exempt Bond
Fund generated a total return of 0.15%(1). For the same period, the Fund's
benchmark, the Lehman Brothers 7-year Municipal Bond Index, posted a total re-
turn of -0.34%.
The relative out performance of the Fund during the period can be primarily
attributed to maintaining an average effective duration shorter than that of
its benchmark in a rising interest rate environment. A number of relative
value opportunities arose in various high income-tax states that improved the
overall total return of the Fund(2).
In the new millennium, the adviser believes that municipals within the ten-
year range are likely to perform quite well in relation to other fixed income
asset classes. Anticipated strong demand as many bonds mature at the first of
the year often initiates strong price performance in the shorter end of the
maturity spectrum. The adviser believes that the Fund is positioned to perform
well in 2000.
M.S.D.&T. National Tax-Exempt Bond Fund(4)
For the six months ended November 30, 1999, the National Tax-Exempt Bond Fund
generated a total return of -1.29%. For the same period, the Lehman Brothers
Municipal Bond Index posted a total return of -1.86%(1).
The relative out performance of the Fund compared to it's benchmark during
this period was primarily a result of yield curve positioning. The concentra-
tion of bonds with maturities greater than twenty years was decreased dramati-
cally throughout the period. This area of the yield curve was hardest hit by
the increase in interest rates. For example, AAA rated general obligation debt
in the 30-year maturity range rose approximately 0.65% during the time period
as compared to 0.50% in the 5- and 10-year maturity ranges.
The adviser believes that municipals are likely to perform well in the new
millennium. This strength in performance is likely to be attributed to an in-
crease in demand at higher overall yield levels as well as a general decrease
in supply.
vi
<PAGE>
(1) Total return and principal value of investments will fluctuate with market
changes and shares, when redeemed, may be worth more or less than their origi-
nal cost. Figures for the period indicated reflect fee waivers in effect, re-
investment of dividends, distributions, and capital gains as well as changes
in share price. Fee waivers may result in higher total returns than would oc-
cur if full fees were charged. Past performance is not a guarantee of future
results.
<TABLE>
<CAPTION>
Total Return Annualized Total
for the one Return for five Average Annual
year ended years ended Total Return
Inception December 31, December 31, since inception to
Date 1999 1999 December 31, 1999
--------- ------------ ---------------- ------------------
<S> <C> <C> <C> <C>
Growth & Income Fund.... 2/28/91 16.12% 23.99% 17.10%
Equity Income Fund...... 3/1/98 3.75% N/A 6.93%
Equity Growth Fund...... 3/1/98 25.94% N/A 25.50%
International Equity
Fund................... 7/2/93 38.00% 13.86% 13.45%
Diversified Real Estate
Fund................... 8/1/97 1.44% N/A -2.07%
Limited Maturity Bond
Fund................... 3/14/91 1.93% 6.65% 6.05%
Total Return Bond Fund.. 3/1/98 -0.12% N/A 3.62%
Maryland Tax-Exempt Bond
Fund................... 6/2/92 -2.12% 5.79% 5.08%
Intermediate Tax-Exempt
Bond Fund.............. 3/1/98 0.85% N/A 3.07%
National Tax-Exempt Bond
Fund................... 3/1/98 -1.41% N/A 2.29%
</TABLE>
(2) Portfolio composition is subject to change.
(3) International investing is subject to certain risks, such as currency ex-
change rate volatility, possible political, social or economic instability,
foreign taxation and/or differences in auditing and other financial standards.
(4) The Maryland Tax-Exempt Bond, Intermediate Tax-Exempt Bond and National
Tax-Exempt Bond Funds' income may be subject to certain state and local taxes
and, depending on your tax status, the federal alternative minimum tax.
Performance Index comparisons: The S&P 500 Index is an unmanaged index gener-
ally representative of the U.S. Stock Market. An investor cannot invest in the
S&P 500 Index. The MSCI World ex-U.S. Index is an unmanaged standard foreign
securities index that reflects the strategic emerging markets allocations. The
Wilshire Real Estate Index is an unmanaged index generally representative of
the U.S. REIT market. The various Lehman Indexes are according to Lehman
Brothers Inc. and are unmanaged indexes used for comparison to corresponding
funds.
vii
<PAGE>
M.S.D.&T. Funds, Inc.
PRIME MONEY MARKET FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
CERTIFICATES OF DEPOSIT -- 9.3%
Domestic -- 3.7%
Bank of America
5.50%, 01/24/00.......................................... $10,000 $ 10,000,000
5.91%, 02/03/00.......................................... 10,000 10,000,000
------------
20,000,000
------------
Yankee -- 5.6%
Candian Imperial Bank of Canada
5.50%, 12/20/99.......................................... 10,000 10,000,000
Swiss Bank Corp.
5.22%, 05/10/00.......................................... 12,000 11,999,490
UBS AG
5.60%, 06/14/00.......................................... 8,000 7,997,735
------------
29,997,225
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $49,997,225)....................................... 49,997,225
------------
COMMERCIAL PAPER -- 54.1%
Automotive -- 2.8%
Ford Motor Credit Corp.
5.69%, 02/07/00.......................................... 15,000 14,838,783
------------
Banks -- 3.7%
SunTrust Banks, Inc.
5.45%, 12/09/99.......................................... 20,000 19,975,778
------------
Consumer Goods -- 2.8%
Procter & Gamble Co.
5.80%, 01/20/00.......................................... 15,000 14,879,167
------------
Education -- 3.7%
Harvard University
5.68%, 12/01/99.......................................... 20,000 20,000,000
------------
Finance -- 26.2%
Associates Corp. N.A.
5.78%, 01/25/00.......................................... 15,000 14,867,542
Centric Capital Corp.
5.40%, 12/07/99.......................................... 6,000 5,994,600
5.95%, 01/21/00.......................................... 12,000 11,898,850
5.90%, 01/31/00.......................................... 7,000 6,930,019
CIT Group Holdings, Inc.
5.27%, 12/03/99.......................................... 10,000 9,997,072
General Electric Capital Corp.
5.83%, 01/18/00.......................................... 12,000 11,906,720
5.85%, 02/01/00.......................................... 10,000 9,899,250
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
COMMERCIAL PAPER -- Continued
Finance -- Continued
Goldman Sachs Group, Inc.
5.86%, 02/03/00.......................................... $10,000 $ 9,895,822
J.P. Morgan & Co.
5.83%, 02/22/00.......................................... 10,000 9,865,586
KFW International Financial, Inc.
5.72%, 01/18/00.......................................... 10,000 9,923,733
5.75%, 01/19/00.......................................... 10,000 9,921,736
Merrill Lynch & Co.
5.60%, 12/10/99.......................................... 10,000 9,986,000
Morgan Stanley Dean Witter
5.92%, 01/19/00.......................................... 10,000 9,919,422
Wells Fargo Co.
5.94%, 02/09/00.......................................... 10,000 9,884,500
------------
140,890,852
------------
Foods -- 2.8%
Campbells Soup
4.83%, 02/01/00.......................................... 15,000 14,875,225
------------
Petroleum -- 3.7%
Chevron Transport Corp.
5.28%, 12/13/99.......................................... 20,000 19,964,800
------------
Retail Stores -- 2.8%
Wal-Mart Stores, Inc.
5.55%, 12/08/99.......................................... 15,000 14,983,813
------------
Telecommunications -- 2.8%
BellSouth Corp.
5.80%, 01/25/00.......................................... 15,000 14,867,083
------------
Utilities -- Electric -- 2.8%
Georgia Power Co.
5.70%, 02/14/00.......................................... 5,000 4,940,625
TECO Finance Corp.
5.75%, 02/08/00.......................................... 10,000 9,889,792
------------
14,830,417
------------
TOTAL COMMERCIAL PAPER
(Cost $290,105,918)...................................... 290,105,918
------------
CORPORATE BONDS -- 7.2%
Automotive -- 0.5%
Ford Motor Credit Corp.
6.84%, 06/05/00.......................................... 2,775 2,787,876
------------
</TABLE>
See Accompanying Notes to Financial Statements.
1
<PAGE>
M.S.D.&T. Funds, Inc.
PRIME MONEY MARKET FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
CORPORATE BONDS -- Continued
Financial Services -- 6.3%
Associates Corp. N.A.
6.84%, 05/22/00.......................................... $ 3,000 $ 3,012,646
First Chicago Corp.
5.98%, 09/05/00.......................................... 10,000 9,997,080
Merrill Lynch & Co., FRN**
5.64%, 08/03/00.......................................... 12,000 12,024,226
Wells Fargo Co.
7.125%, 04/01/00......................................... 8,500 8,528,518
------------
33,562,470
------------
Retail Stores -- 0.4%
Wal-Mart Stores, Inc.
5.85%, 06/01/00.......................................... 2,200 2,198,955
------------
TOTAL CORPORATE BONDS
(Cost $38,549,301)....................................... 38,549,301
------------
REPURCHASE AGREEMENTS -- 29.6%
Banc of America Securities, LLC
(Agreement dated 11/30/99 to be repurchased at
$38,709,020 collateralized by $41,630,000 (Value
$39,490,218) U.S. Treasury Bills, due 11/09/00) 5.60%,
12/01/99................................................ 38,703 38,703,000
Merrill Lynch Government Securities, Inc.
(Agreement dated 11/30/99 to be repurchased at
$15,002,312 collateralized by $14,910,000 (Value
$15,295,867) U.S. Treasury Notes, 6.375%, due 08/15/02)
5.55%, 12/01/99......................................... 15,000 15,000,000
Morgan Stanley & Co., Inc.
(Agreement dated 11/30/99 to be repurchased at
$35,005,415 collateralized by $30,250,000 (Value
$35,974,792) U.S. Treasury Notes, 8.125%, due 08/15/19)
5.57%, 12/01/99......................................... 35,000 35,000,000
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
REPURCHASE AGREEMENTS -- Continued
J.P. Morgan Securities, Inc.
(Agreement dated 11/30/99 to be repurchased at
$35,005,425 collateralized by $34,081,000 (Value
$35,751,015) U.S. Treasury Notes, 6.75%, due 08/15/26)
5.58%, 12/01/99........................................ $35,000 $ 35,000,000
Wachovia Securities, Inc.
(Agreement dated 11/30/99 to be repurchased at
$35,005,415 collateralized by $35,403,000 (Value
$36,415,305) U.S. Treasury Notes, 3.625%, due 01/15/08)
5.57%, 12/01/99........................................ 35,000 35,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $158,703,000)..................................... 158,703,000
------------
TOTAL INVESTMENTS IN SECURITIES -- 100.2%
(Cost $537,355,444*).................................... 537,355,444
------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.2)%................... (1,113,423)
------------
NET ASSETS -- 100.0%
(equivalent to $1.00 per share based on 536,347,717 shares
outstanding).................................................... $536,242,021
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($536,242,021 / 536,347,717)..................................... $1.00
=====
</TABLE>
- --------
* Aggregate cost for Federal income tax purposes.
** The rate shown is as of November 30, 1999 and the maturity date shown is
the shorter of (i) the next interest readjustment date or (ii) the date on
which the principal amount can be recovered through demand.
See Accompanying Notes to Financial Statements.
2
<PAGE>
M.S.D.&T. Funds, Inc.
GOVERNMENT MONEY MARKET FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
AGENCY OBLIGATIONS -- 79.9%
Federal Farm Credit Bureau -- 7.2%
Notes
5.30%, 02/01/00....................................... $10,000 $ 10,000,000
5.62%, 03/01/00....................................... 10,000 10,000,000
5.73%, 06/01/00....................................... 10,000 10,000,000
------------
30,000,000
------------
Federal Home Loan Bank -- 23.1%
Discount Notes
5.49%, 02/04/00....................................... 10,000 9,900,875
5.44%, 02/25/00....................................... 15,000 14,804,708
5.39%, 07/28/00....................................... 5,000 4,820,333
Floating Rate Notes**
5.96%, 12/01/99....................................... 5,000 5,000,000
5.71%, 12/01/99....................................... 8,000 7,999,746
5.72%, 12/01/99....................................... 20,000 19,997,085
Notes
5.02%, 03/03/00....................................... 9,150 9,150,000
5.52%, 06/22/00....................................... 10,000 10,000,000
5.705%, 07/14/00...................................... 15,000 15,000,000
------------
96,672,747
------------
Federal Home Loan Mortgage Corp. -- 22.6%
Discount Notes
5.23%, 12/01/99....................................... 10,470 10,470,000
5.18%, 12/02/99....................................... 10,000 9,998,561
5.19%, 12/09/99....................................... 10,000 9,988,467
5.26%, 12/10/99....................................... 10,000 9,986,850
5.44%, 01/28/00....................................... 10,000 9,910,100
5.53%, 02/11/00....................................... 15,000 14,834,100
5.53%, 02/15/00....................................... 15,000 14,824,883
5.58%, 02/29/00....................................... 15,000 14,790,750
------------
94,803,711
------------
Federal National Mortgage Association -- 18.7%
Discount Notes
5.20%, 12/15/99....................................... 10,000 9,979,778
5.57%, 01/18/00....................................... 9,000 8,934,000
5.53%, 01/20/00....................................... 15,000 14,884,792
5.52%, 01/25/00....................................... 5,000 4,957,833
5.54%, 02/24/00....................................... 15,000 14,803,792
5.21%, 06/01/00....................................... 10,000 9,735,158
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
AGENCY OBLIGATIONS -- Continued
Federal National Mortgage Association -- Continued
Floating Rate Notes**
5.23%, 12/02/99.......................................... $ 5,000 $ 4,997,741
5.94%, 02/09/00.......................................... 10,000 9,995,869
------------
78,288,963
------------
Student Loan Marketing Association -- 8.3%
Floating Rate Notes**
5.79%, 12/01/99.......................................... 10,000 10,000,000
6.00%, 12/07/99.......................................... 10,000 9,999,655
5.96%, 12/07/99.......................................... 15,000 15,000,000
------------
34,999,655
------------
TOTAL AGENCY OBLIGATIONS
(Cost $334,765,076)...................................... 334,765,076
------------
REPURCHASE AGREEMENTS -- 25.0%
Banc of America Securities, LLC
(Agreement dated 11/30/99 to be repurchased at
$24,875,869 collateralized by $24,860,000 (Value
$25,421,185) U.S. Treasury Notes, 6.625%, due 5/15/07)
5.60%, 12/01/99......................................... 24,872 24,872,000
J.P. Morgan Securities, Inc.
(Agreement dated 11/30/99 to be repurchased at
$35,005,425 collateralized by $32,235,000 (Value
$35,710,668) U.S. Treasury Notes, 9.125%, due 5/15/09)
5.58%, 12/01/99......................................... 35,000 35,000,000
Morgan Stanley & Co., Inc.
(Agreement dated 11/30/99 to be repurchased at
$20,003,094 collateralized by $17,140,000 (Value
$20,560,490) U.S. Treasury Notes, 8.125%, due 8/15/21)
5.57%, 12/01/99......................................... 20,000 20,000,000
</TABLE>
See Accompanying Notes to Financial Statements.
3
<PAGE>
M.S.D.&T. Funds, Inc.
GOVERNMENT MONEY MARKET FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
REPURCHASE AGREEMENTS -- Continued
Wachovia Securities, Inc.
(Agreement dated 11/30/99 to be repurchased at
$25,003,868 collateralized by $25,288,000 (Value
$26,001,079) U.S. Treasury Notes, 3.625%, due 1/15/08)
5.57%, 12/01/99......................................... $25,000 $ 25,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $104,872,000)...................................... 104,872,000
------------
</TABLE>
<TABLE>
<CAPTION>
Value
-----
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES -- 104.9%
(Cost $439,637,076*).......... $439,637,076
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (4.9)%.............. (20,513,116)
------------
NET ASSETS -- 100.0%
(equivalent to $1.00 per share
based on 419,250,166 shares
outstanding)................. $419,123,960
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($419,123,960*/ 419,250,166).. $1.00
=====
</TABLE>
- --------
* Aggregate cost for Federal income tax purposes.
** The rate shown is as of November 30, 1999 and the maturity date shown is
the shorter of (i) the next interest readjustment date or (ii) the date on
which the principal amount can be recovered through demand.
See Accompanying Notes to Financial Statements.
4
<PAGE>
M.S.D.&T. Funds, Inc.
TAX-EXEMPT MONEY MARKET FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
ALASKA -- 0.6%
Alaska Marine, VRDN, Exxon Mobil Corp., Valdez Project**
3.70%, 12/01/99.......................................... $1,000 $ 1,000,000
------------
FLORIDA -- 6.5%
Broward County Water & Sewer, RB, INS: AMBAC
4.30%, 10/02/00.......................................... 2,500 2,509,442
Jacksonville Electric Authority, RB, St. Johns River
6.40%, 10/02/00.......................................... 1,750 1,785,934
Jacksonville Electric Authority, TECP, SPA: Morgan
Guaranty Trust
Co. NY
3.70%, 02/16/00.......................................... 1,000 1,000,000
Volusia County Health Facilities, VRDN, FGIC, Aces-Pooled
Hospital Loan Program, SPA: SunTrust Bank**
3.75%, 12/07/99.......................................... 5,500 5,500,000
------------
10,795,376
------------
GEORGIA -- 1.1%
Cobb County & Marietta Water Authority, RB
5.00%, 11/01/00.......................................... 1,850 1,868,915
------------
ILLINOIS -- 6.3%
Bedford Park, VRDN, Environmental Revenue, Minnesota
Mining & Manufacturing**
3.85%, 12/07/99.......................................... 500 500,000
Illinois Development Finance Authority, VRDN, PCR, GTD:BP
Amoco Oil **
3.70%, 12/01/99.......................................... 1,200 1,200,000
Illinois Educational Facilities, VRDN, Northwestern
University, LIC: First National Bank of Chicago**
3.95%, 12/07/99.......................................... 4,000 4,000,000
Illinois Educational Facilities, VRDN, Northwestern
University, SPA: Northern Trust Co.**
3.95%, 12/07/99.......................................... 1,700 1,700,000
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
ILLINOIS -- Continued
Illinois Health Facility, TECP, St Luke's Medical Center,
LOC: Northern Trust Co.
3.80%, 02/16/00.......................................... $2,845 $ 2,845,000
------------
10,245,000
------------
KENTUCKY -- 2.5%
Jefferson County, TECP, PCR, Louisville Gas & Electric
3.65%, 02/07/00.......................................... 2,000 2,000,000
Trimble County, TECP, PCR, Louisville Gas & Electric
3.80%, 01/26/00.......................................... 2,000 2,000,000
------------
4,000,000
------------
LOUISIANA -- 7.4%
East Baton Rouge Parish, VRDN, PCR, Exxon Mobil Corp.**
3.75%, 12/01/99.......................................... 3,700 3,700,000
Plaquemine Parish Port & Harbor Terminal District, TECP,
GTD:TECO Energy, Inc.
3.20%, 12/09/99.......................................... 3,500 3,500,000
3.85%, 01/25/00.......................................... 2,700 2,700,000
St. Charles Parish, VRDN, PCRB, Shell Oil Co. Project**
3.70%, 12/01/99.......................................... 2,100 2,100,000
------------
12,000,000
------------
MARYLAND -- 5.7%
Harford County, GO
4.40%, 12/01/00.......................................... 1,690 1,699,003
Maryland Economic Development Corp., VRDN, LOC:
Nationsbank Trust**
3.90%, 12/07/99.......................................... 4,000 4,000,000
Maryland State & Local Facilities, GO
5.00%, 03/15/00.......................................... 2,000 2,010,507
4.10%, 08/01/00.......................................... 500 500,953
St Mary's County, GO, Public Facilites and Hospital,
INS:AMBAC
4.10%, 07/03/00.......................................... 1,000 1,001,555
------------
9,212,018
------------
</TABLE>
See Accompanying Notes to Financial Statements.
5
<PAGE>
M.S.D.&T. Funds, Inc.
TAX-EXEMPT MONEY MARKET FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
MICHIGAN -- 2.8%
University of Michigan, VRDN, Hospital Revenue**
3.65%, 12/01/99.......................................... $4,620 $ 4,620,000
------------
MINNESOTA -- 5.5%
Minneapolis, GO, Special School District, University
Gateway Project, SPA: Norwest Bank
3.75%, 12/07/99.......................................... 6,000 6,000,000
City of Rochester, RB, Health-Mayo Foundation
3.80%, 03/07/00.......................................... 3,000 3,000,000
------------
9,000,000
------------
MISSISSIPPI -- 0.7%
Harrison County, VRDN, PCRB, E.I. duPont deNemours & Co.**
3.65%, 12/01/99.......................................... 1,100 1,100,000
------------
MISSOURI -- 2.1%
Boone County, IDA, VRDN, PCR, GTD Minnesota Mining &
Manufacturing Project**
3.85%, 12/07/99.......................................... 500 500,000
Missouri State Health & Educational Facilities, VRDN,
Washington University Project, SPA: Morgan Guaranty Trust
Co. NY**
3.90%, 12/07/99.......................................... 2,890 2,890,000
------------
3,390,000
------------
NEVADA -- 1.6%
Clark County School District, RB, INS: FGIC, Prerefunded
5/01/00 @ 102
7.20%, 05/01/00.......................................... 2,500 2,590,425
------------
NEW HAMPSHIRE -- 3.3%
New Hampshire State Turnpike Systems, RB, Prerefunded @
102
7.40%, 04/01/00.......................................... 5,140 5,308,421
------------
NEW YORK -- 3.1%
City of New York, Water Financial Authority, VRDN, INS:
FGIC**
4.00%, 12/01/99.......................................... 5,000 5,000,000
------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
NORTH CAROLINA -- 8.3%
City of Charlotte, Water & Sewer, GO
4.75%, 02/01/00.......................................... $2,980 $ 2,988,583
City of Durham, VRDN, COP, SPA: Wachovia Bank N.A.**
3.80%, 12/07/99.......................................... 5,000 5,000,000
City of Winston-Salem, VRDN, COP, SPA: Wachovia Bank
N.A.**
3.95%, 12/07/99.......................................... 2,200 2,200,000
3.95%, 12/07/99.......................................... 800 800,000
North Carolina Educational Facilities, VRDN, SPA: Wachovia
Bank N.A., Wake Forest University Project**
3.70%, 12/07/99.......................................... 2,500 2,500,000
------------
13,488,583
------------
OHIO -- 7.7%
Cuyahoga County, VRDN, Hospital Revenue, Cleveland
Clinic**
3.80%, 12/01/99.......................................... 3,900 3,900,000
3.90%, 12/07/99.......................................... 3,000 3,000,000
Warren County, Ohio Health Care, VRDN, Otterbein Homes,
LOC: Fifth Third Bank
3.80%, 12/07/99.......................................... 5,645 5,645,000
------------
12,545,000
------------
OREGON -- 2.2%
Oregon State Board of Higher Education, GO
5.70%, 10/16/00.......................................... 1,000 1,015,261
State of Oregon, GO, VRDN, Veterans Welfare Board, LOC:
Morgan Guaranty Trust Co. NY**
3.85%, 12/07/99.......................................... 2,600 2,600,000
------------
3,615,261
------------
PENNSYLVANIA -- 4.4%
Delaware County, IDA, VRDN, General Electric Capital
Corp.**
3.75%, 12/07/99.......................................... 2,200 2,200,000
Delaware County, IDA, VRDN, GTD: United Parcels Project**
3.80%, 12/01/99.......................................... 3,500 3,500,000
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
M.S.D.&T. Funds, Inc.
TAX-EXEMPT MONEY MARKET FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
PENNSYLVANIA -- Continued
Pennsylvania State, GO, Prerefunded 5/01/00 @ 101.5
7.00%, 05/01/00.......................................... $1,475 $ 1,519,873
------------
7,219,873
------------
SOUTH CAROLINA -- 3.8%
Berkeley County, VRDN, PCR, BP Amoco Chemical Co.
Project**
3.70%, 12/01/99.......................................... 2,200 2,200,000
York County, PCR, TECP, Duke Power Project
3.60%, 02/09/00.......................................... 2,400 2,400,000
3.50%, 02/09/00.......................................... 1,550 1,550,000
------------
6,150,000
------------
TEXAS -- 16.6%
City of Austin Combined Utility System, TECP, LOC: Morgan
Guaranty Trust Co. NY
3.60%, 12/08/99.......................................... 4,000 4,000,000
Harris County, Health Facilities Development, VRDN,
Methodist Hospital, SPA: Morgan Guaranty Trust Co. NY**
3.80%, 12/01/99.......................................... 1,900 1,900,000
Harris County, Health Facilities Development, VRDN, RB,
St. Luke's Episcopal Hospital Project, SPA: Morgan
Guaranty Trust Co. NY**
3.70%, 12/01/99.......................................... 5,000 5,000,000
North Central Texas Health Facilities Development, VRDN,
RB, Presbyterian Medical Center, SPA: Bank of America**
3.70%, 12/01/99.......................................... 2,700 2,700,000
North Central Texas Health Facilities Development, VRDN,
RB, Presbyterian Medical Center, INS: MBIA, SPA:
NationsBank**
3.70%, 12/01/99.......................................... 100 100,000
State of Texas, TRANS
4.50%, 08/31/00.......................................... 7,000 7,039,430
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
TEXAS -- Continued
State of Texas, Multi-Modal Water Development, VRDN, SPA:
Canadian Imperial Bank**
3.80%, 12/01/99.......................................... $6,300 $ 6,300,000
------------
27,039,430
------------
UTAH -- 1.3%
Salt Lake County, VRDN, BP Amoco Oil Project**
3.70%, 12/01/99.......................................... 2,050 2,050,000
------------
VIRGINIA -- 0.9%
City of Richmond, GO, Prerefunded 1/15/00 @ 102
6.875%, 01/15/00......................................... 1,500 1,536,674
------------
WYOMING -- 2.0%
Lincoln County, VRDN, PCRB, Exxon Mobil Corp. Project**
3.70%, 12/01/99.......................................... 1,900 1,900,000
Sublette County, VRDN, PCRB, Exxon Mobil Corp. Project**
3.70%, 12/01/99.......................................... 1,300 1,300,000
------------
3,200,000
------------
TOTAL MUNICIPAL BONDS
(Cost $156,974,976)..................................... 156,974,976
------------
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
M.S.D.&T. Funds, Inc.
TAX-EXEMPT MONEY MARKET FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
INVESTMENT COMPANIES -- 3.4%
Goldman Sachs Financial Square Tax-Free Money Market
Fund.................................................. 4,022,723 $ 4,022,723
Provident Institutional Funds--MuniFund................ 1,579,746 1,579,746
------------
TOTAL INVESTMENT COMPANIES
(Cost $5,602,469).............................................. 5,602,469
------------
TOTAL INVESTMENTS IN SECURITIES -- 99.8%
(Cost $162,577,445*)............................................ 162,577,445
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2%.................... 348,494
------------
NET ASSETS -- 100.0%
(equivalent to $1.00 per share based on
162,940,889 shares outstanding)................................ $162,925,939
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($162,925,939 / 162,940,889).................................... $1.00
=====
</TABLE>
- --------
* Aggregate cost for Federal income tax purposes.
** The rate shown is as of November 30, 1999 and the maturity date shown is the
shorter of (i) the next interest readjustment date or (ii) the date on which
the principal amount can be recovered through demand.
See Accompanying Notes to Financial Statements.
8
<PAGE>
M.S.D.&T. Funds, Inc.
GROWTH & INCOME FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- 98.0%
Airlines -- 2.5%
Southwest Airlines Co.................................. 685,100 $ 11,175,694
------------
Banking -- 4.3%
Comerica, Inc.......................................... 153,400 8,130,200
SunTrust Banks, Inc.................................... 157,600 11,012,300
------------
19,142,500
------------
Beverages -- 2.2%
Pepsico, Inc........................................... 288,000 9,954,000
------------
Chemicals -- 1.4%
E.I. duPont deNemours & Co............................. 20,700 1,230,356
RPM, Inc............................................... 422,250 4,961,437
------------
6,191,793
------------
Computer Equipment -- 7.0%
Hewlett-Packard Co..................................... 138,200 13,111,725
I B M.................................................. 177,200 18,262,675
------------
31,374,400
------------
Computer Networking & Software -- 9.4%
Cabletron Systems*..................................... 165,100 3,786,981
Cisco Systems, Inc.*................................... 312,400 27,862,175
Microsoft*............................................. 55,500 5,053,102
Sun Microsystems, Inc.*................................ 40,000 5,290,000
------------
41,992,258
------------
Computer Services -- 0.5%
America Online, Inc.*.................................. 28,400 2,064,325
------------
Electrical Equipment -- 4.8%
Emerson Electric Co.................................... 122,600 6,988,200
General Electric Co.................................... 110,250 14,332,500
------------
21,320,700
------------
Electronics -- 4.1%
3Com Corp.*............................................ 75,000 2,985,937
Intel Corp............................................. 197,000 15,107,437
------------
18,093,374
------------
Financial Services -- 3.6%
American International Group, Inc...................... 43,500 4,491,375
Freddie Mac............................................ 133,400 6,586,625
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- Continued
Financial Services -- Continued
Goldman Sachs Group, Inc............................... 33,800 $ 2,539,225
Morgan Stanley Dean Witter............................. 21,000 2,533,125
------------
16,150,350
------------
Food Products -- 2.5%
Bestfoods.............................................. 60,000 3,288,750
Nestle Registered ADR.................................. 86,900 7,816,655
------------
11,105,405
------------
Household Products -- 6.9%
Colgate-Palmolive Co................................... 181,800 9,976,275
Gillette Co............................................ 137,600 5,529,800
Newell Rubbermaid, Inc................................. 85,400 2,802,188
Procter & Gamble Co.................................... 63,300 6,836,400
Unilever N V........................................... 99,875 5,436,945
------------
30,581,608
------------
Industrial Goods -- 3.0%
Corning, Inc. ......................................... 141,700 13,275,519
------------
Insurance -- 5.5%
Berkshire Hathaway, Inc.*.............................. 3,896 7,266,040
Chubb Corp. ........................................... 114,300 6,122,194
Jefferson Pilot Corp. ................................. 167,650 11,379,244
------------
24,767,478
------------
Machinery & Heavy Equipment -- 3.6%
Caterpillar, Inc. ..................................... 143,800 6,668,725
Ingersoll-Rand Co. .................................... 72,600 3,516,562
Illinois Tool Works, Inc. ............................. 92,420 5,984,195
------------
16,169,482
------------
Medical Instruments & Supplies -- 2.2%
Johnson & Johnson...................................... 94,900 9,845,875
------------
Office Equipment -- 0.7%
Pitney Bowes, Inc. .................................... 61,100 2,928,981
------------
Oil/Gas Equipment & Services -- 2.2%
Halliburton Co. ....................................... 84,572 3,271,879
Schlumberger Ltd. ADR.................................. 112,300 6,745,019
------------
10,016,898
------------
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
M.S.D.&T. Funds, Inc.
GROWTH & INCOME FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- Continued
Oil & Gas Exploration Product & Services -- 2.5%
Chevron Corp. ......................................... 78,100 $ 6,916,731
Mobil Corp. ........................................... 40,000 4,172,500
------------
11,089,231
------------
Pharmaceuticals -- 16.0%
Amgen, Inc.*........................................... 314,800 14,343,075
Bristol-Myers Squibb Co. .............................. 174,400 12,742,100
Covance, Inc.*......................................... 229,000 2,490,375
Merck & Co., Inc. ..................................... 185,400 14,553,900
Pfizer, Inc. .......................................... 346,440 12,536,798
Schering Plough Corp. ................................. 136,500 6,978,563
Warner-Lambert Co. .................................... 85,300 7,650,344
------------
71,295,155
------------
Retail Stores -- 6.0%
Home Depot, Inc. ...................................... 104,700 8,277,844
May Department Stores Co. ............................. 170,700 5,739,788
Wal-Mart Stores, Inc. ................................. 217,200 12,516,150
------------
26,533,782
------------
Telecommunications -- 5.8%
BellSouth Corp. ....................................... 74,000 3,417,875
Lucent Technologies, Inc. ............................. 181,072 13,229,573
MCI WorldCom, Inc.*.................................... 113,097 9,351,708
------------
25,999,156
------------
Tobacco -- 1.3%
Philip Morris, Inc..................................... 212,820 5,599,826
------------
TOTAL COMMON STOCK
(Cost $246,486,494).................................... $436,667,790
------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
COMMON STOCK -- Continued
REPURCHASE AGREEMENTS -- 2.0%
Banc of America Securities, LLC
(Agreement dated 11/30/99 to be repurchased at $4,771,742
collateralized by $4,920,000 (Value $4,877,463) U.S.
Treasury Notes, 5.50%, due 3/31/03) 5.60%, 12/01/99..... $4,771 $ 4,771,000
Morgan Stanley & Co., Inc.
(Agreement dated 11/30/99 to be repurchased at $4,000,619
collateralized by $3,430,000 (Value 4,114,497) U.S.
Treasury Notes, 8.125%, due 8/15/21) 5.57%, 12/01/99.... 4,000 4,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $8,771,000)........................................ 8,771,000
------------
TOTAL INVESTMENTS IN
SECURITIES -- 100.0%
(Cost $255,257,495**)............................................. 445,438,790
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.0%...................... 218,817
------------
NET ASSETS -- 100.0%
(equivalent to $25.44 per share based on 17,516,534 shares
outstanding)..................................................... $445,657,607
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($445,657,607 / 17,516,534)....................................... $25.44
======
</TABLE>
- --------
* Non-income producing securities.
** Cost for Federal income tax purposes is $255,298,156. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost................................. $201,199,493
Excess of tax cost over value................................. $(11,058,859)
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
M.S.D.&T. Funds, Inc.
EQUITY INCOME FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- 95.4%
Aerospace -- 2.5%
Kaman Corp. ........................................... 129,406 $ 1,536,696
Lockheed Martin Corp. ................................. 130,000 2,583,750
Raytheon Co -- Class B................................. 100,000 3,068,750
------------
7,189,196
------------
Automotive -- 0.9%
Genuine Parts Co. ..................................... 100,000 2,575,000
------------
Banking -- 4.5%
First Union Corp. ..................................... 76,140 2,945,666
J.P. Morgan & Co. ..................................... 32,306 4,248,239
Regions Financial Corp. ............................... 72,300 1,983,731
Union Planters Corp. .................................. 80,000 3,410,000
------------
12,587,636
------------
Beverages -- 1.0%
Pepsico, Inc. ......................................... 84,000 2,903,250
------------
Building Products -- 3.5%
Armstrong World Industries............................. 65,000 2,177,500
Black & Decker......................................... 60,000 2,692,500
Fleetwood Enterprises.................................. 110,000 2,310,000
Stanley Works.......................................... 90,000 2,801,250
------------
9,981,250
------------
Chemicals -- 3.7%
E.I. duPont deNemours & Co. ........................... 83,905 4,987,103
Imperical Chemical ADR................................. 60,000 2,452,500
International Flavors & Fragrances..................... 65,000 2,392,812
RPM, Inc. ............................................. 60,000 705,000
------------
10,537,415
------------
Computer Equipment -- 1.4%
Hewlett-Packard Co. ................................... 40,000 3,795,000
------------
Computer Networking & Software -- 2.1%
Autodesk, Inc. ........................................ 75,000 2,198,438
Electronic Data Services Corp. ........................ 60,000 3,858,750
------------
6,057,188
------------
Containers & Packaging -- 0.9%
Crown Cork & Seal, Co. ................................ 120,000 2,445,000
------------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- Continued
Electrical Equipment -- 1.8%
General Electric Co. .................................. 40,000 $ 5,200,000
------------
Electric & Gas Utility -- 5.8%
Edison International................................... 85,000 2,252,500
Equitable Resources, Inc. ............................. 120,386 4,190,938
Keyspan Energy Corp. .................................. 139,934 3,594,555
Northern States Power.................................. 100,000 2,043,750
Southern Co. .......................................... 95,000 2,220,625
Texas Utilities........................................ 60,000 2,148,750
------------
16,451,118
------------
Electronics -- 2.5%
3Com Corp.*............................................ 85,000 3,384,062
Intel Corp. ........................................... 50,000 3,834,375
------------
7,218,437
------------
Engineering -- 0.3%
Fluor Corp. ........................................... 20,000 841,250
------------
Financial Services -- 2.4%
CIT Group, Inc. ....................................... 135,000 2,801,250
Washington Mutual, Inc. ............................... 134,400 3,897,600
------------
6,698,850
------------
Food Products -- 1.6%
Bestfoods.............................................. 43,008 2,357,376
McCormick & Co., Inc. ................................. 70,879 2,272,558
------------
4,629,934
------------
Food Processing -- 0.9%
Universal Foods........................................ 120,000 2,550,000
------------
Household Products -- 2.5%
Procter & Gamble Co. .................................. 50,000 5,400,000
Tupperware Corp. ...................................... 95,000 1,692,187
------------
7,092,187
------------
Industrial Goods -- 0.6%
Harsco Corp. .......................................... 54,758 1,632,473
------------
Insurance -- 6.9%
Aetna, Inc. ........................................... 65,000 3,550,625
Chubb Corp. ........................................... 61,036 3,269,241
HSB Group.............................................. 92,000 3,231,500
Jefferson Pilot Corp. ................................. 53,475 3,629,616
</TABLE>
See Accompanying Notes to Financial Statements.
11
<PAGE>
M.S.D.&T. Funds, Inc.
EQUITY INCOME FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- Continued
Insurance -- Continued
Lincoln National Corp. ................................ 80,000 $ 3,335,000
UNUMProvident Corp. ................................... 75,000 2,442,187
------------
19,458,169
------------
Iron/Steel -- 0.9%
Worthington Industries, Inc. .......................... 165,600 2,649,600
------------
Machinery & Equipment -- 3.6%
Caterpillar, Inc. ..................................... 75,000 3,478,125
Deere & Co. ........................................... 112,211 4,818,060
Timken Co. ............................................ 104,000 1,989,000
------------
10,285,185
------------
Manufacturing -- 1.8%
United Technologies.................................... 90,000 5,085,000
------------
Medical Equipment & Supplies -- 1.8%
Johnson & Johnson...................................... 50,000 5,187,500
------------
Metals & Mining -- 1.6%
Homestake Mining Co. .................................. 110,000 907,500
Phelps Dodge Corp. .................................... 70,000 3,640,000
------------
4,547,500
------------
Office/Business Equipment & Supplies -- 1.1%
Deluxe Corp. .......................................... 120,000 3,142,500
------------
Oil/Gas Equipment & Services -- 2.9%
Halliburton Co. ....................................... 90,000 3,481,875
Schlumberger Ltd. ADR.................................. 80,796 4,852,810
------------
8,334,685
------------
Oil & Gas Exploration Product & Services -- 12.0%
Atlantic Richfield Co.................................. 39,688 3,824,931
BP Amoco ADR........................................... 110,000 6,703,125
Chevron Corp........................................... 69,697 6,172,541
Conoco, Inc............................................ 49,138 1,286,801
Exxon Corp............................................. 90,956 7,213,950
Mobil Corp............................................. 54,000 5,632,875
Murphy Oil Corp........................................ 58,434 3,301,521
------------
34,135,744
------------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- Continued
Paper Products -- 1.7%
P.H. Glatfelter Co..................................... 80,179 $ 1,032,305
Potlatch Corp. ........................................ 90,000 3,639,375
------------
4,671,680
------------
Pharmaceuticals -- 7.2%
American Home Products................................. 100,000 5,200,000
Bristol-Myers Squibb Co. .............................. 70,000 5,114,375
Merck & Co., Inc. ..................................... 72,000 5,652,000
Pfizer, Inc............................................ 120,000 4,342,500
------------
20,308,875
------------
Photography & Imaging -- 1.3%
Eastman Kodak Co....................................... 60,000 3,712,500
------------
Printing & Publishing -- 2.5%
R.R. Donnelley & Sons Co............................... 130,000 3,120,000
Dun & Bradstreet....................................... 45,000 1,215,000
Washington Post Co..................................... 5,012 2,864,358
------------
7,199,358
------------
Railroads -- 0.8%
Norfolk -- Southern Corp. ............................. 100,000 2,137,500
------------
Real Estate Investment Trusts -- 1.8%
Archstone Communities.................................. 140,000 2,808,750
Equity Office Properties............................... 105,000 2,303,437
------------
5,112,187
------------
Retail Stores -- 2.2%
J.C. Penney............................................ 115,000 2,565,938
May Department Stores Co. ............................. 62,700 2,108,287
Toys 'R' Us, Inc.*..................................... 90,000 1,575,000
------------
6,249,225
------------
Telecommunications -- 3.3%
BellSouth Corp......................................... 75,000 3,464,062
GTE Corp. ............................................. 80,000 5,840,000
------------
9,304,062
------------
Textiles -- 0.7%
V F Corp. ............................................. 70,000 2,091,250
------------
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
M.S.D.&T. Funds, Inc.
EQUITY INCOME FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- Continued
Tobacco -- 2.4%
Gallaher Group ADR..................................... 124,973 $ 2,601,000
Philip Morris, Inc..................................... 160,000 4,210,000
------------
6,811,000
------------
TOTAL COMMON STOCK
(Cost $171,731,361).................................... 270,808,704
------------
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
REPURCHASE AGREEMENTS -- 4.4%
Banc of America Securities, LLC
(Agreement dated 11/30/99 to be repurchased at
$6,364,317 collateralized by $6,590,000 (Value
$6,504,638) U.S. Treasury Bills, 4.00%, due 10/31/00)
5.60%, 12/01/99........................................ $6,364 6,364,000
Morgan Stanley & Co., Inc.
(Agreement dated 11/30/99 to be repurchased at
$6,000,928 collateralized by $4,860,000 (Value
$6,169,213) U.S. Treasury Notes, 9.125%, due 5/15/18)
5.57%, 12/01/99........................................ 6,000 6,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $12,364,000)................................................ 12,364,000
------------
</TABLE>
<TABLE>
<CAPTION>
Value
--------- -----
<S> <C> <C>
TOTAL INVESTMENTS IN
SECURITIES -- 99.8%
(Cost
$184,095,361**).. $283,172,704
OTHER ASSETS IN
EXCESS OF
LIABILITIES --
0.2%............. 607,579
-------------
NET ASSETS -- 100.0%
(equivalent to
$9.70 per share
based on
29,270,416 shares
outstanding)..... $ 283,780,283
=============
NET ASSET VALUE,
OFFERING AND
REDEMPTION PRICE
PER SHARE
($283,780,283 /
29,270,416)...... $9.70
=====
</TABLE>
- --------
* Non-income producing securities.
** Aggregate cost for Federal income tax purposes. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost $113,700,589
Excess of tax cost over value $(14,623,246)
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
M.S.D.&T. Funds, Inc.
EQUITY GROWTH FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- 96.4%
Airlines -- 1.3%
Southwest Airlines Co................................... 43,650 $ 712,041
-----------
Automotive -- 2.0%
General Motors--Class H*................................ 13,000 1,113,125
-----------
Banking -- 2.0%
Comerica, Inc........................................... 7,500 397,500
Wells Fargo Co.......................................... 16,000 744,000
-----------
1,141,500
-----------
Beverages -- 1.3%
Coca-Cola Co............................................ 3,000 201,937
Pepsico, Inc............................................ 15,600 539,175
-----------
741,112
-----------
Broadcasting -- 1.7%
Cox Communications*..................................... 20,000 940,000
-----------
Communications Equipment -- 4.8%
Lucent Technologies..................................... 4,832 353,038
Motorola, Inc........................................... 9,000 1,028,250
Sterling Commerce, Inc.*................................ 49,500 1,274,625
-----------
2,655,913
-----------
Computer Equipment -- 5.4%
EMC Corp.*.............................................. 6,000 501,375
Gateway, Inc.*.......................................... 22,000 1,680,250
I B M................................................... 8,300 855,419
-----------
3,037,044
-----------
Computer Networking & Software -- 12.2%
Autodesk, Inc........................................... 29,000 850,063
Cisco Systems, Inc.*.................................... 19,800 1,765,912
Computer Assoc. Int'l................................... 13,500 877,500
Electronic Data Services................................ 11,800 758,887
Microsoft*.............................................. 18,000 1,638,844
Sun Microsystems, Inc.*................................. 7,000 925,750
-----------
6,816,956
-----------
Computer Services -- 0.8%
America Online, Inc.*................................... 6,000 436,125
-----------
Cruise Lines -- 1.4%
Carnival Cruise......................................... 17,200 758,950
-----------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- Continued
Electrical Equipment -- 4.1%
American Power Conversion*.............................. 40,000 $ 952,500
General Electric Co..................................... 10,400 1,352,000
-----------
2,304,500
-----------
Electronics -- 9.0%
3Com Corp.*............................................. 29,500 1,174,469
Avnet, Inc.............................................. 20,000 1,098,750
Intel Corp.............................................. 20,000 1,533,750
Teradyne, Inc.*......................................... 28,000 1,219,750
-----------
5,026,719
-----------
Financial Services -- 6.0%
American Express Co..................................... 6,800 1,028,925
CIT Group, Inc.......................................... 18,000 373,500
Freddie Mac............................................. 12,000 592,500
Morgan Stanley Dean Witter.............................. 7,200 868,500
T. Rowe Price Assoc..................................... 14,300 514,800
-----------
3,378,225
-----------
Food Products -- 1.5%
Corn Products International............................. 12,000 376,500
Nestle Registered ADR................................... 5,000 449,750
-----------
826,250
-----------
Household Products -- 1.1%
Colgate-Palmolive Co.................................... 11,000 603,625
-----------
Insurance -- 2.5%
Lincoln National Corp................................... 16,000 667,000
UNUMProvident Corp...................................... 23,000 748,937
-----------
1,415,937
-----------
Manufacturing -- 1.4%
Tyco International...................................... 20,000 801,250
-----------
Medical Equipment & Supplies -- 4.0%
Baxter International.................................... 11,000 743,187
Boston Scientific Corp.*................................ 20,000 422,500
Johnson & Johnson....................................... 10,100 1,047,875
-----------
2,213,562
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
M.S.D.&T. Funds, Inc.
EQUITY GROWTH FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK -- Continued
Oil/Gas Equipment & Services -- 3.7%
Baker Hughes............................................ 18,000 $ 454,500
Enron Corp.............................................. 16,000 609,000
Halliburton Co.......................................... 11,534 446,222
Williams Co............................................. 16,000 540,000
-----------
2,049,722
-----------
Oil & Gas Exploration Product & Services -- 2.4%
Exxon Corp.............................................. 7,500 594,844
Mobil Corp.............................................. 7,000 730,187
-----------
1,325,031
-----------
Pharmaceuticals -- 8.4%
American Home Products.................................. 20,000 1,040,000
Bristol-Myers Squibb Co................................. 16,000 1,169,000
Chiron Corp.*........................................... 5,500 180,469
Genzyme Corp.*.......................................... 10,000 360,000
Pfizer, Inc............................................. 12,000 434,250
Warner Lambert Co....................................... 17,200 1,542,625
-----------
4,726,344
-----------
Restaurants -- 0.6%
McDonald's Corp......................................... 8,000 360,000
-----------
Retail Stores -- 7.4%
Dayton-Hudson Corp...................................... 10,000 705,625
Gap, Inc................................................ 12,750 516,375
Home Depot, Inc......................................... 14,000 1,106,875
Nordstrom, Inc.......................................... 15,000 417,188
Staples, Inc.*.......................................... 20,000 470,000
Wal-Mart Stores, Inc.................................... 16,000 922,000
-----------
4,138,063
-----------
Telecommunications -- 11.4%
AT&T Corp............................................... 24,000 1,341,000
Cable & Wireless ADR.................................... 9,000 357,750
Global Crossing Ltd.*................................... 26,650 1,162,606
MCI Worldcom, Inc.*..................................... 21,000 1,736,438
SBC Communications, Inc................................. 18,000 934,875
Vodafone ADR............................................ 17,500 825,781
-----------
6,358,450
-----------
TOTAL COMMON STOCK
(Cost $33,991,738)...................................... 53,880,444
-----------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C> <C>
REPURCHASE AGREEMENT -- 3.6%
Banc of America Securities, LLC
(Agreement dated 11/30/99 to be repurchased at
$2,035,317 collateralized by $2,000,000 (Value
$2,086,005) U.S. Treasury Bills, 7.75% due 2/15/01)
5.60%, 12/01/99..................................... $2,035 $ 2,035,000
-----------
TOTAL REPURCHASE AGREEMENT (Cost $2,035,000)................ 2,035,000
-----------
TOTAL INVESTMENTS IN SECURITIES -- 100.0%
(Cost $36,026,738**)........................................ 55,915,444
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.0)%.............. (1,875)
-----------
NET ASSETS -- 100.0%
(equivalent to $12.81 per share based on 4,365,715 shares
outstanding)............................................... $55,913,569
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($55,913,569 / 4,365,715)................................... $12.81
======
</TABLE>
- --------
* Non-income producing securities.
** Cost for Federal income tax purposes is $36,192,239. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost.................................... $20,444,249
Excess of tax cost over value.................................... $(721,044)
</TABLE>
See Accompanying Notes to Financial Statements.
15
<PAGE>
M.S.D.&T. Funds, Inc.
INTERNATIONAL EQUITY FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK & PREFERRED STOCK -- 93.8%
Australia -- 1.1%
Goodman Fielder......................................... 270,000 $ 242,004
John Fairfax Ltd........................................ 43,000 121,911
National Australian Bank................................ 37,000 533,909
North Limited........................................... 65,000 127,677
Telstra (Installment Receipt)........................... 16,000 59,317
-----------
1,084,818
-----------
Brazil -- 1.2%
Telesudeste Cellular ADR................................ 23,000 478,688
Unibanco GDR............................................ 29,400 692,738
-----------
1,171,426
-----------
China -- 0.2%
Maanshan Iron and Steel................................. 2,115,000 138,886
-----------
Denmark -- 0.6%
Tele Danmank 'B'........................................ 10,000 644,303
-----------
Finland -- 1.9%
Nokia 'A'............................................... 9,000 1,274,120
Sonera.................................................. 5,500 227,109
Stora Enso 'A'.......................................... 28,000 394,701
-----------
1,895,930
-----------
France -- 11.1%
Alcatel................................................. 4,500 872,219
AXA..................................................... 6,250 842,642
Banque National de Paris................................ 9,150 838,388
Carrefour............................................... 4,000 696,769
Danone.................................................. 2,270 526,384
Dexia NPV............................................... 3,620 596,313
Equant.................................................. 5,400 521,972
France Telecom.......................................... 8,175 947,427
Peugeot................................................. 1,750 342,721
Renault................................................. 8,000 351,445
Rhodia.................................................. 30,000 546,742
Rhone-Poulenc........................................... 7,000 433,467
Suez Lyonnaise Des Eaux................................. 4,000 589,233
Total Fina 'B'.......................................... 11,468 1,525,402
Valeo................................................... 5,400 361,575
Vivendi................................................. 13,927 1,114,826
-----------
11,107,525
-----------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK & PREFERRED STOCK -- Continued
Germany -- 9.2%
Allianz................................................. 2,145 $ 627,956
BASF.................................................... 8,850 409,460
Bayer Hypovereinsbank................................... 4,600 285,313
Celanese................................................ 1 13
DaimlerChrysler......................................... 4,750 323,313
Deutsche Bank........................................... 8,480 558,841
Deutsche Telekom........................................ 16,000 915,868
Direkt Anlage Bank...................................... 2,320 36,325
GEA Preferred........................................... 29,500 807,929
Hoechst................................................. 13,950 634,885
Man..................................................... 17,800 543,057
Mannesman............................................... 7,000 1,454,756
Sap Preferred, Non-Voting............................... 520 211,004
Siemens................................................. 10,800 1,088,530
Thyssen Krupp........................................... 25,000 656,996
Veba.................................................... 13,500 659,262
-----------
9,213,508
-----------
Hong Kong -- 2.4%
Cable and Wireless HKT.................................. 177,000 482,017
China Telecom........................................... 92,000 493,972
Dao Heng Bank Group..................................... 35,100 200,212
Henderson Land Development.............................. 42,000 227,131
Hutchison Whampoa....................................... 35,000 430,378
New World China Land.................................... 87,800 39,002
Pacific Century Cyberworks.............................. 225,000 192,656
SCMP Holdings........................................... 340,000 282,369
-----------
2,347,737
-----------
Italy -- 3.2%
Acea.................................................... 23,400 265,064
Banca Nazionale Lavaro.................................. 105,000 338,315
ENI..................................................... 136,000 744,938
Telecom Italia Mobile................................... 75,000 589,031
Tiscali*................................................ 3,570 572,620
Unicredito Italiano..................................... 150,000 699,286
-----------
3,209,254
-----------
Japan -- 23.7%
Asahi Glass Company..................................... 80,000 642,756
Bridgestone............................................. 16,000 394,578
Daiwa House Industry.................................... 30,000 270,098
Daiwa Sec............................................... 73,000 1,041,581
</TABLE>
See Accompanying Notes to Financial Statements.
16
<PAGE>
M.S.D.&T. Funds, Inc.
INTERNATIONAL EQUITY FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK & PREFERRED STOCK -- Continued
Japan -- Continued
FamilyMart Co., Ltd..................................... 3,000 $ 188,188
Fujitsu Ltd............................................. 12,000 425,111
Industrial Bank......................................... 71,000 835,866
Kawasaki Steel.......................................... 240,000 493,223
Kuraray................................................. 48,000 540,197
Kyocera Corp............................................ 8,000 963,742
Mabuchi Motors.......................................... 6,100 764,104
Marui Co., Ltd.......................................... 38,000 650,037
Matsushita Electric Industrial.......................... 35,000 885,404
Minebea................................................. 18,000 280,609
Mitsubishi Corp......................................... 100,000 871,948
Mitsui Fudosan.......................................... 94,000 747,879
Nihon Unisys, Ltd....................................... 6,000 229,584
Nintendo................................................ 3,000 499,388
Nippon Telegraph & Telephone............................ 78 1,396,878
Nishimatsu Construction................................. 90,000 404,267
NSK Limited............................................. 76,000 646,318
NTT Mobile Comm......................................... 20 700,690
Ricoh................................................... 53,000 980,281
Sanwa Bank.............................................. 69,000 837,305
Sekisui Chemical........................................ 68,000 322,748
Sharp................................................... 45,000 918,187
Shin-Etsu Chemical...................................... 25,000 985,957
Sumitomo Bank........................................... 63,000 964,867
Sumitomo Marine & Fire.................................. 75,000 527,719
Suzuki Motor............................................ 28,000 410,745
Teijin.................................................. 167,000 748,505
Toshiba Corp............................................ 109,000 801,086
Toyota Motor............................................ 18,000 609,483
Trans Cosmos............................................ 5,000 1,135,196
Tsubaki Nakashima....................................... 35,000 486,373
-----------
23,600,898
-----------
Malaysia -- 1.2%
Genting Berhad.......................................... 96,000 333,471
Malayan Banking......................................... 100,000 342,103
Malaysian Air Systems................................... 273,000 234,204
Tenaga Nasional......................................... 145,000 320,524
-----------
1,230,302
-----------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK & PREFERRED STOCK -- Continued
Mexico -- 1.3%
Corporacion Geo.......................................... 270,000 $ 915,546
Telefonos Mexico ADR..................................... 4,400 407,275
-----------
1,322,821
-----------
Netherlands -- 6.5%
Ahold.................................................... 15,000 477,417
Buhrmann................................................. 19,500 306,483
Fortis................................................... 13,500 462,571
Getronics................................................ 6,000 367,012
ING...................................................... 10,300 579,219
Laurus................................................... 14,700 274,564
OpenTV Corp.............................................. 11,500 908,500
Philips Electronics...................................... 9,890 1,203,443
Royal Dutch Petrol....................................... 12,500 735,408
Vendex................................................... 14,500 382,518
VNU...................................................... 20,500 812,234
-----------
6,509,369
-----------
Norway -- 0.2%
Petroleum Geo-Services................................... 14,100 218,631
-----------
Portugal -- 0.3%
Portugal Telecom......................................... 31,050 298,571
PT Multimedia*........................................... 1,160 45,692
-----------
344,263
-----------
Singapore -- 1.3%
City Developments........................................ 29,000 164,853
DBS Group Holdings....................................... 32,542 422,277
Overseas Chinese Bank.................................... 31,000 232,504
Parkway Holdings......................................... 130,000 263,099
Sembcorp Industries...................................... 118,000 157,335
Singapore Telecom........................................ 54,000 102,216
-----------
1,342,284
-----------
South Africa -- 1.6%
Barlow Ltd............................................... 115,000 669,516
De Beers-Centenary....................................... 25,000 676,115
Old Mutual............................................... 116,000 252,665
-----------
1,598,296
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
M.S.D.&T. Funds, Inc.
INTERNATIONAL EQUITY FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK & PREFERRED STOCK -- Continued
South Korea -- 0.8%
Housing & Commercial Bank GDR.......................... 16,000 $ 448,566
Samsung Electronics GDR................................ 5,000 372,500
-----------
821,066
-----------
Spain -- 3.1%
Amadeus*............................................... 35,000 274,881
Argentaria............................................. 29,000 662,836
BCSM................................................... 46,800 514,107
Repsol................................................. 17,250 376,905
Telefonica de Espana................................... 57,750 1,202,500
Terra Networks*........................................ 1,400 48,224
-----------
3,079,453
-----------
Sweden -- 1.3%
Ericsson............................................... 26,000 1,261,611
-----------
Switzerland -- 3.9%
Clariant............................................... 814 349,468
Holdersbank............................................ 435 544,952
Nestle Registered...................................... 265 476,735
Novartis Registered,
Non-Voting............................................ 700 1,090,778
Roche Holdings 1/10 PC
Non-Voting............................................ 64 772,401
UBS Registered......................................... 2,300 628,896
-----------
3,863,230
-----------
Thailand -- 1.0%
Bangkok Bank........................................... 51,000 109,206
Bangkok Expressway..................................... 470,000 232,017
Golden Land Property................................... 440,000 203,103
Land and House......................................... 71,400 71,409
PTT Expl & Prod........................................ 13,000 80,010
Siam Cement Co Ltd..................................... 4,000 116,117
Telecomasia............................................ 187,000 184,626
-----------
996,488
-----------
Turkey -- 1.7%
Garanti Bank........................................... 57,400,000 620,433
Isbank................................................. 21,200,000 501,264
Sabanci................................................ 17,500,000 565,780
-----------
1,687,477
-----------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
COMMON STOCK & PREFERRED STOCK -- Continued
United Kingdom -- 15.0%
Abbey National.......................................... 30,000 $ 507,913
Allied Zurich........................................... 22,000 267,176
Astrazeneca............................................. 12,000 534,192
Barclays................................................ 27,000 779,213
BG...................................................... 86,000 452,009
BP Amoco................................................ 186,000 1,897,433
British Aero Loan....................................... 6,771 10,165
British Aerospace....................................... 21,440 122,502
British Telecom......................................... 53,000 1,065,294
Bryant Group............................................ 155,000 357,960
Cable & Wireless........................................ 36,000 457,838
Diageo.................................................. 29,000 262,581
Glaxo Wellcome.......................................... 44,000 1,316,081
Granada Group........................................... 46,000 378,776
Hanson.................................................. 21,000 177,435
HSBC Holdings........................................... 51,000 659,976
Jarvis Hotels........................................... 95,000 172,490
Kingfisher.............................................. 38,000 352,242
Land Securities......................................... 30,000 347,368
Legal and General....................................... 60,000 165,800
Limelight............................................... 210,000 133,787
Lloyds.................................................. 42,000 536,820
Marconi................................................. 50,000 638,275
Norwich Union........................................... 43,000 305,106
Peninsular Oriental Steam............................... 26,000 381,802
Railtrack Group......................................... 11,000 169,065
Royal & Sun Alliance.................................... 46,363 283,186
SmithKline Beecham...................................... 52,000 696,520
Unilever................................................ 28,000 205,586
Vodafone Airtouch....................................... 250,000 1,178,599
Whitbread............................................... 18,000 173,020
-----------
14,986,210
-----------
TOTAL COMMON STOCK & PREFERRED STOCK
(Cost $74,646,430)...................................... 93,675,786
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
M.S.D.&T. Funds, Inc.
INTERNATIONAL EQUITY FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
------ -----
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 6.0%
Eurodollar Time Deposit
State Street Bank & Trust Co.
5.0%, 12/01/99............................................. $5,943 $ 5,943,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $5,943,000).......................................... 5,943,000
-----------
TOTAL INVESTMENTS IN SECURITIES -- 99.8%
(Cost $80,589,430**)............................................... 99,618,786
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2%....................... 215,682
-----------
NET ASSETS -- 100.0 %
(equivalent to $16.04 per share based on 6,225,315 shares
outstanding)...................................................... $99,834,468
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($99,834,468 / 6,225,315).......................................... $16.04
======
</TABLE>
- --------
* Non-income producing securities.
** Cost for Federal income tax purposes is $80,589,546. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost................................... $22,819,396
Excess of tax cost over value................................... $(3,790,156)
</TABLE>
See Accompanying Notes to Financial Statements.
19
<PAGE>
M.S.D.&T. Funds, Inc.
DIVERSIFIED REAL ESTATE FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS -- 96.2%
Apartments -- 24.5%
AMLI Residential Properties Trust........................ 8,200 $ 174,762
Archstone Communities.................................... 12,500 250,781
Avalonbay Communities.................................... 8,634 279,526
Equity Residential Properties Trust...................... 6,450 259,209
Gables Residential Trust................................. 8,200 194,750
Home Property............................................ 9,000 230,625
Post Properties, Inc. ................................... 4,000 152,500
Charles E Smith Residential Realty....................... 7,700 250,250
Summit Properties, Inc. ................................. 9,000 164,250
United Dominion Realty Trust, Inc. ...................... 13,500 145,969
----------
2,102,622
----------
Construction -- 0.3%
Centex Corporation....................................... 1,000 23,750
----------
Diversified -- 11.6%
Colonial Properties Trust................................ 6,400 157,600
Duke Realty Investments, Inc. ........................... 13,678 253,043
Eastgroup Properties..................................... 9,900 172,012
Liberty Property Trust................................... 6,800 155,125
Spieker Properties, Inc. ................................ 7,300 255,500
----------
993,280
----------
Health Care -- 5.0%
Health Care Property Investors........................... 4,000 103,750
Meditrust Companies...................................... 4,004 26,276
Nationwide Health Properties, Inc. ...................... 10,100 150,869
Omega Healthcare Investors, Inc. ........................ 9,000 150,750
----------
431,645
----------
Hotels & Lodging -- 4.4%
Crestline Capital Corp.*................................. 1,300 28,844
Host Marriott Corp. ..................................... 7,000 65,187
Jameson Inns, Inc. ...................................... 4,000 33,250
RFS Hotel Investors, Inc. ............................... 8,000 89,000
Starwood Hotels & Resorts................................ 6,600 147,262
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS -- Continued
Hotels & Lodging -- Continued
Wyndham International, Inc.
Class A*................................................ 4,000 $ 11,250
----------
374,793
----------
Investment Company -- 0.8%
Wellsford Real Properties*............................... 8,500 66,938
----------
Office Properties -- 25.0%
Arden Realty Group, Inc. ................................ 7,500 144,375
Boston Properties, Inc. ................................. 3,800 107,587
Carramerica Realty Corp. ................................ 5,400 112,050
Cornerstone Properties, Inc. ............................ 8,000 110,500
Corporate Office Properties Trust........................ 13,000 100,750
Cousins Properties, Inc. ................................ 6,400 220,800
Crescent Real Estate Equities, Inc. ..................... 8,500 143,969
Equity Office Properties Trust........................... 11,200 245,700
Highwood Properties, Inc. ............................... 8,000 176,000
Mack Cali Realty Corp.................................... 6,800 167,875
Prentiss Properties Trust................................ 12,000 243,000
Reckson Association Realty Corp. ........................ 11,800 238,213
Reckson Services Realty Corp.*........................... 4,704 129,360
----------
2,140,179
----------
Retail -- 14.3%
Burnham Pacific Property, Inc. .......................... 3,400 33,362
CBL & Associates Properties, Inc. ....................... 3,900 85,069
Federal Realty Investment Trust.......................... 5,800 104,400
IRT Property Co. ........................................ 9,800 76,563
New Plan Excel Realty.................................... 8,000 130,000
Regency Realty Corp. .................................... 8,000 162,000
Rouse Co. ............................................... 8,300 182,081
Simon Property Group, Inc. .............................. 5,500 128,219
Taubman Centers, Inc. ................................... 12,800 139,200
Urban Shopping Centers, Inc. ............................ 4,100 105,831
Western Investment Real Estate Trust..................... 7,500 74,063
----------
1,220,788
----------
</TABLE>
See Accompanying Notes to Financial Statements.
20
<PAGE>
M.S.D.&T. Funds, Inc.
DIVERSIFIED REAL ESTATE FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS -- Continued
Storage -- 2.7%
Public Storage, Inc. .................................... 5,600 $ 127,750
Sovran Self Storage, Inc. ............................... 3,400 68,000
Storage USA, Inc. ....................................... 1,400 37,800
----------
233,550
----------
Warehouse/Industrial -- 7.6%
Centerpoint Properties Trust............................. 6,000 208,500
First Industrial Realty Trust, Inc. ..................... 9,100 232,050
Prologis Trust........................................... 11,620 211,339
----------
651,889
----------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(Cost $9,519,780)........................................ 8,239,434
----------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
INVESTMENT COMPANIES -- 3.7%
Goldman Sachs Financial Square Prime Obligations Fund.... 146,136 $ 146,136
Provident Institutional
Funds -- TempFund....................................... 173,358 173,358
----------
TOTAL INVESTMENT COMPANIES
(Cost $319,494).......................................... 319,494
----------
TOTAL INVESTMENTS IN SECURITIES -- 99.9%
(Cost $9,839,274**)...................................... 8,558,928
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.1%............. 9,485
----------
NET ASSETS -- 100.0%
(equivalent to $8.10 per share based on 1,057,424 shares
outstanding)............................................ $8,568,413
==========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($8,568,413 / 1,057,424)................................. $8.10
=====
</TABLE>
- --------
* Non-income producing securities.
** Aggregate cost for Federal income tax purposes is $9,865,800. The aggre-
gate gross unrealized appreciation (depreciation) for all securities is as
follows:
<TABLE>
<S> <C>
Excess of value over tax cost................................... $ 162,023
Excess of tax cost over value................................... $(1,468,895)
</TABLE>
See Accompanying Notes to Financial Statements.
21
<PAGE>
M.S.D.&T. Funds, Inc.
LIMITED MATURITY BOND FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
AGENCY OBLIGATIONS -- 20.3%
Federal Farm Credit Bank -- 1.2%
Debentures
5.125%, 04/02/01.................................... $ 2,000 $ 1,972,660
-----------
Federal Home Loan Mortgage Corp. -- 7.8%
Debentures
5.00%, 01/15/04..................................... 1,000 942,990
7.01%, 07/11/07..................................... 1,000 993,510
Mortgage Backed Securities
6.00%, 04/01/14..................................... 11,307 10,836,677
-----------
12,773,177
-----------
Federal National Mortgage Association -- 8.0%
Mortgage Backed Securities
6.375%, 06/15/09.................................... 2,500 2,426,200
6.50%, 04/01/14 (Pool #323654)...................... 9,033 8,838,041
6.00%, 04/01/14 (Pool #484807)...................... 1,913 1,831,367
-----------
13,095,608
-----------
Government National Mortgage Association -- 3.3%
Mortgage Backed Securities
6.00%, 06/15/13 (Pool #456934)...................... 2,294 2,194,895
6.00%, 07/15/13 (Pool #433894)...................... 3,232 3,092,290
-----------
5,287,185
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $34,256,068).................................. 33,128,630
-----------
CORPORATE BONDS -- 31.6%
Beverages -- 2.9%
Coca-Cola Enterprises Putable Asset Trust
6.00%, 03/15/01..................................... 1,000 991,250
Coca-Cola Co., Inc.
5.75%, 11/01/08..................................... 1,000 905,000
Pepsico Inc. Medium Term Note
5.75%, 01/02/03..................................... 3,000 2,910,000
-----------
4,806,250
-----------
Chemicals -- 1.2%
E.I. duPont deNemours & Co. Medium Term Note
6.00%, 03/06/03..................................... 2,000 1,960,000
-----------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
CORPORATE BONDS -- Continued
Communication Equipment -- 0.9%
Motorola, Inc.
5.80%, 10/15/08............................................ $1,675 $ 1,528,437
-----------
Computer Software -- 1.3%
Sun Microsystems, Inc.
7.65%, 08/15/09............................................ 2,000 2,027,500
-----------
Defense -- 1.2%
United Technologies Corp.
7.00%, 09/15/06............................................ 2,000 1,987,500
-----------
Finance -- 7.9%
Associates Corp. North America
6.50%, 07/15/02............................................ 2,000 1,987,500
Ford Motor Credit Corp.
6.00%, 01/14/03............................................ 2,800 2,730,000
IBM Credit
5.76%, 05/15/01............................................ 2,000 1,977,500
Norwest Financial, Inc.
6.375%, 11/15/03........................................... 1,000 981,250
SunTrust Banks, Inc.
6.25%, 06/01/08............................................ 2,000 1,872,500
Toyota Motor Credit
5.625%, 11/13/03........................................... 1,000 956,250
Wachovia Corp.
6.70%, 06/21/04............................................ 2,500 2,471,875
-----------
12,976,875
-----------
Foods -- 0.6%
Campbells Soup
6.15%, 12/01/02............................................ 1,000 986,250
-----------
Manufacturing -- 0.8%
Minnesota Mining and Manufacturing
5.62%, 07/15/09............................................ 1,399 1,308,612
-----------
Printing & Publishing -- 2.4%
Dow Jones & Co., Inc.
5.75%, 12/01/00............................................ 2,000 1,987,500
Time Mirror Corp.
6.65%, 10/15/01............................................ 2,000 1,995,000
-----------
3,982,500
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
22
<PAGE>
M.S.D.&T. Funds, Inc.
LIMITED MATURITY BOND FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
CORPORATE BONDS -- Continued
Railroads -- 1.3%
Union Pacific Corp.
6.125%, 01/15/04........................................... $2,150 $ 2,058,625
-----------
Retail Merchandising -- 2.7%
Sears Roebuck Acceptance Corp.
6.34%, 10/12/00............................................ 2,600 2,594,384
Wal-Mart Stores
6.875%, 08/10/09........................................... 1,750 1,739,063
-----------
4,333,447
-----------
Telecommunications -- 1.2%
MCI WorldCom, Inc.
6.125%, 08/15/01........................................... 2,000 1,982,500
-----------
Utilities -- Gas/Gas & Electric -- 5.3%
Baltimore Gas & Electric
6.50%, 02/15/03............................................ 3,000 2,973,750
Consolidated Natural Gas Co.
5.75%, 08/01/03............................................ 475 453,625
Enron Corporation
6.625%, 11/15/05........................................... 2,750 2,643,437
Northern Illinois Gas Co.
6.45%, 08/01/01............................................ 2,500 2,493,750
-----------
8,564,562
-----------
Utilities -- Telephone -- 1.9%
Ameritech Capital Funding
6.125%, 10/15/01........................................... 1,200 1,189,500
AT&T Corporation
5.625%, 03/15/04........................................... 2,000 1,910,000
-----------
3,099,500
-----------
TOTAL CORPORATE BONDS
(Cost $52,843,930)......................................... 51,602,558
-----------
FOREIGN BONDS -- 0.6%
Governments -- 0.6%
Ontario Province Global Notes
5.50%, 10/01/08............................................ 1,000 903,750
-----------
TOTAL FOREIGN BONDS
(Cost $994,615)............................................ 903,750
-----------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
ASSET-BACKED SECURITIES -- 7.3%
Auto Loan -- 0.7%
Banc One Auto Grantor Trust
6.27%, 11/20/03............................................ $ 927 $ 929,400
Premier Auto Trust
6.575%, 10/06/00........................................... 247 246,814
-----------
1,176,214
-----------
Credit Card -- 2.6%
Citibank Credit Card Master Trust
6.839%, 02/10/04........................................... 4,250 4,223,565
-----------
Recreational Vehicles -- 1.8%
CIT Rv Trust
5.99%, 05/15/09............................................ 3,000 2,974,688
-----------
Stranded Cost -- 2.2%
California Infrastructure
6.17%, 03/25/03............................................ 1,000 997,000
6.16%, 06/25/03............................................ 1,000 996,690
Comed Transitional Funding Trust
5.34%, 03/25/04............................................ 1,700 1,654,406
-----------
3,648,096
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $12,126,994)......................................... 12,022,563
-----------
U.S. TREASURY OBLIGATIONS -- 26.5%
U.S. Treasury Bills -- 6.0%
4.465%, 02/03/00........................................... 5,000 4,955,200
4.465%, 05/04/00........................................... 5,000 4,886,300
-----------
9,841,500
-----------
U.S. Treasury Notes -- 20.5%
5.375%, 01/31/00........................................... 5,000 5,000,000
7.125%, 02/29/00........................................... 5,500 5,522,385
6.375%, 05/15/00........................................... 2,000 2,007,200
6.250%, 05/31/00........................................... 3,500 3,510,990
6.00%, 08/15/00............................................ 2,035 2,038,805
5.00%, 02/28/01............................................ 1,000 989,470
6.50%, 05/31/01............................................ 4,040 4,071,916
5.875%, 11/30/01........................................... 6,000 5,987,160
</TABLE>
See Accompanying Notes to Financial Statements.
23
<PAGE>
M.S.D.&T. Funds, Inc.
LIMITED MATURITY BOND FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- Continued
U.S. Treasury Notes -- Continued
6.125%, 12/31/01..................................... $3,000 $ 3,007,050
5.625%, 05/15/08..................................... 1,500 1,436,235
-----------
33,571,211
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $43,366,709)................................... 43,412,711
-----------
REPURCHASE AGREEMENTS -- 7.1%
Banc of America Securities LLC
(Agreement dated 11/30/99 to be repurchased at
$5,645,878 collateralized by $4,590,000 (Value
$5,808,374) U.S. Treasury Notes, 8.75%, due
08/15/20)
5.60%, 12/01/99..................................... 5,645 5,645,000
Morgan Stanley & Co., Inc.
(Agreement dated 11/30/99 to be repurchased at
$6,000,928 collateralized by $5,000,000 (Value
$6,170,448) U.S. Treasury Notes, 8.50%, due
02/15/20)
5.57%, 12/01/99..................................... 6,000 6,000,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $11,645,000)................................... 11,645,000
-----------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----
<S> <C> <C>
INVESTMENT COMPANIES -- 6.1%
Goldman Sachs Financial Square Prime Obligations Fund... 5,000,000 $ 5,000,000
Provident Institutional
Funds -- TempFund...................................... 5,000,000 5,000,000
------------
TOTAL INVESTMENT COMPANIES
(Cost $10,000,000)..................................... 10,000,000
------------
TOTAL INVESTMENTS IN SECURITIES -- 99.5%
(Cost $165,233,316*).............................................. 162,715,212
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.5%...................... 868,665
------------
NET ASSETS -- 100.0%
(equivalent to $10.21 per share based on 16,026,039 shares
outstanding)..................................................... $163,583,877
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($163,583,877 / 16,026,039)....................................... $10.21
======
</TABLE>
- --------
* Aggregate cost for Federal income tax purposes. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost.................................. $ 111,594
Excess of tax cost over value.................................. $(2,629,698)
</TABLE>
See Accompanying Notes to Financial Statements.
24
<PAGE>
M.S.D.&T. Funds, Inc.
TOTAL RETURN BOND FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
AGENCY OBLIGATIONS -- 46.2%
Federal Home Loan Bank -- 1.3%
Notes
6.185%, 06/07/00.......................................... $1,500 $ 1,501,290
------------
Federal Home Loan Mortgage Corp. -- 13.5%
Collateralized Mortgage Obligation
6.25%, 12/15/16 (Pool #2018PAG)........................... 250 247,850
6.175%, 08/15/18 (Pool #2035)............................. 500 492,325
6.80%, 10/15/26 (Pool #2051).............................. 1,963 1,920,452
Debentures
7.30%, 08/24/06........................................... 1,000 991,480
Mortgage Backed Securities
6.00%, 02/01/14 (Pool #E74547)............................ 896 858,564
6.50%, 09/01/24 (Pool #G00320)............................ 2,116 2,020,897
7.50%, 07/01/26 (Pool #D72963)............................ 179 179,051
6.50%, 10/01/27 (Pool #C00561)............................ 29 27,556
7.50%, 10/01/27 (Pool #D82914)............................ 204 203,385
6.50%, 10/01/27 (Pool #D83095)............................ 31 29,320
6.50%, 10/01/27 (Pool #D83337)............................ 754 719,694
7.00%, 11/01/27 (Pool #D83947)............................ 1,611 1,576,447
5.94%, 05/01/28 (Pool #786307)............................ 719 718,872
6.50%, 03/01/29 (Pool #C00731)............................ 3,916 3,739,474
5.696%, 04/01/29 (ARM).................................... 2,263 2,228,610
------------
15,953,977
------------
Federal National Mortgage Association -- 14.2%
Collateralized Mortgage Obligations
5.70%, 06/25/17 (Pool #X-225C)............................ 493 489,710
6.00%, 11/18/17 (Pool #1998-26)........................... 1,250 1,232,175
6.25%, 03/25/19 (Pool #PAC93-37).......................... 705 704,690
Notes
5.125%, 02/13/04.......................................... 1,000 946,900
6.375%, 06/15/09.......................................... 1,275 1,237,362
Medium Term Notes
6.50%, 12/27/01........................................... 250 248,793
7.14%, 03/12/07........................................... 245 241,019
7.00%, 08/27/12........................................... 1,000 990,820
Mortgage Backed Securities
7.00%, 04/01/04 (Pool #377898)............................ 112 112,424
7.50%, 10/01/07 (Pool #177233)............................ 122 123,277
6.00%, 01/01/09 (Pool #265989)............................ 1,127 1,078,938
7.00%, 04/01/11 (Pool #338884)............................ 373 371,080
7.50%, 08/01/26 (Pool #349416)............................ 130 130,235
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
AGENCY OBLIGATIONS -- Continued
Federal National Mortgage Association -- Continued
8.00%, 09/01/26 (Pool #250675)............................ $ 264 $ 268,089
7.00%, 04/01/27 (Pool #313458)............................ 464 453,591
8.00%, 08/01/27 (Pool #392496)............................ 448 454,674
8.00%, 09/01/27 (Pool #398392)............................ 27 27,443
8.00%, 10/01/27 (Pool # 331320)........................... 94 95,340
7.50%, 10/01/27 (Pool #395593)............................ 544 542,769
8.00%, 10/01/27 (Pool #395770)............................ 14 13,915
7.50%, 10/01/27 (Pool #396031)............................ 658 656,561
7.00%, 10/01/27 (Pool #398928)............................ 253 247,739
6.50%, 10/01/27 (Pool #399065)............................ 381 363,679
8.00%, 10/01/27 (Pool #399081)............................ 413 418,749
8.00%, 10/01/27 (Pool #402178)............................ 198 200,963
7.00%, 11/01/27 (Pool #251286)............................ 705 689,590
6.50%, 11/01/27 (Pool #402786)............................ 147 140,033
6.50%, 12/01/27 (Pool #354802)............................ 526 501,964
6.50%, 01/01/28 (Pool #406700)............................ 1,614 1,539,518
7.00%, 03/01/29 (Pool #491183)............................ 2,349 2,297,965
------------
16,820,005
------------
Government National Mortgage Association -- 16.4%
Mortgage Backed Securities
9.00%, 05/15/16 (Pool #163606)............................ 11 12,021
9.00%, 11/15/16 (Pool #181127)............................ 123 129,155
9.00%, 11/15/16 (Pool #183984)............................ 4 4,705
9.00%, 01/15/17 (Pool #175218)............................ 4 4,195
8.00%, 05/15/17 (Pool #180719)............................ 40 40,742
8.00%, 05/15/17 (Pool #217626)............................ 87 88,704
9.00%, 09/15/17 (Pool #222594)............................ 39 40,636
9.00%, 04/15/18 (Pool #236277)............................ 11 11,174
10.00%, 09/15/18 (Pool #255652)........................... 11 12,004
10.00%, 05/15/19 (Pool #274305)........................... 37 40,013
9.00%, 11/15/19 (Pool #247019)............................ 66 69,072
9.00%, 06/15/21 (Pool #305720)............................ 85 89,524
9.00%, 06/15/21 (Pool #309078)............................ 128 134,183
9.00%, 07/15/21 (Pool #309027)............................ 52 55,190
9.00%, 07/15/21 (Pool #309084)............................ 67 70,805
9.00%, 08/15/21 (Pool #296154)............................ 48 50,983
9.00%, 08/15/21 (Pool #306259)............................ 73 77,181
9.00%, 09/15/21 (Pool #272061)............................ 38 40,279
9.00%, 09/15/21 (Pool #305911)............................ 73 76,933
9.00%, 09/15/21 (Pool #308283)............................ 71 74,769
9.00%, 09/15/21 (Pool #308920)............................ 99 104,510
</TABLE>
See Accompanying Notes to Financial Statements.
25
<PAGE>
M.S.D.&T. Funds, Inc.
TOTAL RETURN BOND FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
AGENCY OBLIGATIONS -- Continued
Government National Mortgage Association -- Continued
9.00%, 09/15/21 (Pool #313023)............................ $ 16 $ 16,913
9.00%, 09/15/21 (Pool #314939)............................ 14 14,630
8.00%, 02/15/23 (Pool #332531)............................ 1,005 1,023,757
7.00%, 05/20/24 (Pool #1716).............................. 152 148,275
7.00%, 10/15/25 (Pool #409958)............................ 344 336,206
7.00%, 01/15/26 (Pool #382719)............................ 304 297,608
7.00%, 01/15/26 (Pool #422404)............................ 252 246,445
6.50%, 02/15/26 (Pool #405214)............................ 124 118,058
7.00%, 02/15/26 (Pool #421686)............................ 812 793,708
6.50%, 02/15/26 (Pool #425085)............................ 101 96,106
6.50%, 03/15/26 (Pool #395468)............................ 170 162,290
7.00%, 01/15/27 (Pool #436748)............................ 368 359,482
7.00%, 02/15/27 (Pool #428935)............................ 340 332,193
7.00%, 08/15/27 (Pool #443508)............................ 227 221,821
8.50%, 08/15/27 (Pool #453213)............................ 301 311,215
6.50%, 08/20/27 (Pool #80104)............................. 1,024 1,033,149
8.00%, 09/15/27 (Pool #453740)............................ 177 180,348
7.00%, 09/15/27 (Pool #453980)............................ 284 277,343
7.00%, 09/15/27 (Pool #454825)............................ 32 30,921
7.00%, 10/15/27 (Pool #445227)............................ 330 323,102
7.00%, 10/15/27 (Pool #453576)............................ 91 89,413
7.00%, 10/15/27 (Pool #455319)............................ 264 257,873
7.00%, 11/15/27 (Pool #452737)............................ 409 399,586
7.00%, 12/15/27 (Pool #443780)............................ 354 346,204
7.00%, 04/15/28 (Pool #471672)............................ 51 49,969
6.50%, 07/15/28 (Pool #468090)............................ 943 897,632
6.50%, 12/15/28 (Pool #471541)............................ 1,465 1,394,991
6.50%, 01/15/29 (Pool #490890)............................ 980 933,200
7.00%, 03/15/29 (Pool #470151)............................ 2,391 2,338,138
7.50%, 10/15/29 (Pool #521954)............................ 999 998,232
7.50%, 11/15/29 (Pool #434587)............................ 4,100 4,096,145
------------
19,351,731
------------
Tennessee Valley Authority -- 0.8%
Bond
6.00%, 11/01/00........................................... 1,000 997,500
------------
TOTAL AGENCY OBLIGATIONS
(Cost $55,719,153)........................................ 54,624,503
------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
DOMESTIC CORPORATE BONDS -- 16.9%
Banking and Financial Services -- 6.9%
American Express Credit Corp.
6.25%, 08/10/05........................................... $1,000 $ 995,980
Associates Corp. of North America
6.25%, 11/01/08........................................... 1,000 933,750
CIT Group, Inc.
5.625%, 10/15/03.......................................... 1,000 953,750
General Motors Acceptance Corp.
7.125%, 05/01/01.......................................... 400 402,500
General Motors Acceptance Corp.
6.375%, 12/01/01.......................................... 2,000 1,985,000
Merrill Lynch, Inc.
6.00%, 02/12/03........................................... 1,000 976,250
SunTrust Banks, Inc.
6.25%, 06/01/08........................................... 2,000 1,872,500
------------
8,119,730
------------
Beverages -- 1.2%
Anheuser Busch Co., Inc.
6.75%, 06/01/05........................................... 500 493,125
Coca Cola Co., Inc.
5.75%, 11/01/08........................................... 1,000 905,000
------------
1,398,125
------------
Communication Equipment -- 1.5%
Motorola, Inc.
5.80%, 10/15/08........................................... 1,000 912,500
6.50%, 11/15/28........................................... 1,050 917,438
------------
1,829,938
------------
Computer Equipment -- 1.9%
IBM Corp.
6.50%, 01/15/28........................................... 2,500 2,271,875
------------
Computer Software -- 1.7%
Sun Microsystems
7.65%, 08/15/09........................................... 2,000 2,027,500
------------
Defense -- 2.0%
United Tech Corp.
6.50%, 06/01/09........................................... 2,500 2,387,500
------------
Petroleum -- 0.1%
Mobil Oil Corp.
9.17%, 02/29/00........................................... 68 68,685
------------
</TABLE>
See Accompanying Notes to Financial Statements.
26
<PAGE>
M.S.D.&T. Funds, Inc.
TOTAL RETURN BOND FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
DOMESTIC CORPORATE BONDS -- Continued
Telecommunications -- 1.6%
AT&T
6.00%, 03/15/09........................................... $2,000 $ 1,845,000
------------
TOTAL CORPORATE BONDS
(Cost $21,070,012)........................................ 19,948,353
------------
FOREIGN BONDS -- 5.7%
Brazil
5.750%, 04/15/24.......................................... 1,300 796,250
Deutschland
4.50%, 07/04/09........................................... 1,500 1,439,049
Manitoba Province Canada
6.125%, 01/19/04.......................................... 1,000 975,000
Mexico
6.25%, 12/31/19........................................... 1,000 775,200
Republic of Argentina, Zero-coupon
10/15/01.................................................. 2,000 1,680,000
Republic of Korea
8.875%, 04/15/08.......................................... 1,000 1,063,750
------------
TOTAL FOREIGN BONDS
(Cost $6,525,670)......................................... 6,729,249
------------
ASSET-BACKED SECURITIES -- 7.2%
Auto Loan -- 2.4%
BancOne Auto Grantor Trust
6.27%, 11/20/03........................................... 681 682,445
Barnett Auto Trust
6.03%, 11/15/01........................................... 917 927,640
Premier Auto Trust
6.35%, 04/06/02........................................... 1,170 1,158,685
------------
2,768,770
------------
Credit Card -- 4.0%
Chase Credit Card Master Trust
6.30%, 04/15/03........................................... 1,000 1,001,980
Citibank Credit Card Master Trust
6.839%, 02/10/04.......................................... 3,750 3,726,675
------------
4,728,655
------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
ASSET-BACKED SECURITIES -- Continued
Electric Utility -- 0.8%
Comed Transitional Fdg Trust
5.34%, 03/25/04........................................... $1,000 $ 973,180
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $8,554,346)......................................... 8,470,605
------------
U.S. TREASURY OBLIGATIONS -- 11.7%
U.S. Treasury Notes
5.625%, 05/15/08.......................................... 3,000 2,872,470
6.125%, 11/15/27.......................................... 2,000 1,906,300
U.S. Treasury Bonds
8.00%, 11/15/21........................................... 1,000 1,162,370
6.25%, 08/15/23........................................... 700 677,257
6.875%, 08/15/25.......................................... 3,100 3,235,935
6.00%, 02/15/26........................................... 4,250 3,983,695
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $13,892,951)........................................ 13,838,027
------------
REPURCHASE AGREEMENTS -- 5.2%
Banc of America Securities LLC
(Agreement dated 11/30/99 to be repurchased at $3,136,488
collateralized by $3,250,000 (Value $3,207,902) U.S.
Treasury Notes, 4.00%, due 10/31/00)
5.60%, 12/01/99.......................................... 3,136 3,136,000
Morgan Stanley & Co., Inc.
(Agreement dated 11/30/99 to be repurchased at $3,000,464
collateralized by $2,400,000 (Value $3,084,049) U.S.
Treasury Notes, 9.25%, due 2/15/16)
5.57%, 12/01/99.......................................... 3,000 3,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,136,000)......................................... 6,136,000
------------
</TABLE>
See Accompanying Notes to Financial Statements.
27
<PAGE>
M.S.D.&T. Funds, Inc.
TOTAL RETURN BOND FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----
<S> <C> <C>
INVESTMENT COMPANIES -- 6.6%
Goldman Sachs Financial Square Prime Obligations Fund.. 3,830,705 $ 3,830,705
Offit High Yield Bond Fund, MSD&T Class................ 400,000 4,028,000
------------
TOTAL INVESTMENT COMPANIES
(Cost $7,830,705)...................................... 7,858,705
------------
TOTAL INVESTMENTS IN SECURITIES -- 99.5%
(Cost $119,728,837*).............................................. 117,605,442
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.5%...................... 621,063
------------
NET ASSETS -- 100.0%
(equivalent to $9.60 per share based on 12,312,131 shares
outstanding)..................................................... $118,226,505
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($118,226,505 / 12,312,131)....................................... $9.60
=====
</TABLE>
- --------
* Aggregate cost for Federal income tax purposes. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost.................................. $ 876,610
Excess of tax cost over value.................................. $(3,000,005)
</TABLE>
See Accompanying Notes to Financial Statements.
28
<PAGE>
M.S.D.&T. Funds, Inc.
MARYLAND TAX-EXEMPT BOND FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
MARYLAND -- 95.5%
Allegany County, PCR, Westvaco Corp. Project
5.90%, 07/01/04............................................. $ 200 $ 206,500
Annapolis, GO, CPI
5.00%, 11/01/16............................................. 440 408,100
Anne Arundel County, GO, CGI
5.30%, 07/15/12............................................. 400 400,500
Baltimore City, GO, CPI, INS: FGIC
5.00%, 10/15/16............................................. 500 461,875
Baltimore City, RB, Port Facilities
6.50%, 12/01/10............................................. 1,000 1,066,250
Baltimore City, RB, Waste Water Project, INS: FGIC
5.50%, 07/01/26............................................. 300 285,000
Baltimore County, GO, Refunding -- CPI
5.20%, 04/01/09............................................. 400 403,000
Calvert County, GO
5.05%, 01/01/01............................................. 1,000 1,008,520
Carroll County, GO, CPI
4.80%, 12/01/12............................................. 855 813,319
Carroll County, GO
5.375%, 11/01/25............................................ 500 465,625
Charles County, GO
6.25%, 06/01/02............................................. 500 522,500
4.40%, 06/01/03............................................. 350 349,562
Frederick County, GO
5.00%, 08/01/09............................................. 500 499,375
4.20%, 07/01/11............................................. 500 454,375
Harford County, GO, CPI, UT
5.60%, 09/01/06............................................. 325 337,187
5.00%, 12/01/14............................................. 250 237,500
Howard County, GO, CPI
5.25%, 08/15/09............................................. 130 131,625
Howard County, GO, CPI, Prerefunded
8/15/03 @ 102
5.25%, 08/15/09............................................. 180 187,650
Howard County, GO, CPI, Prerefunded
8/15/05 @ 100
5.25%, 08/15/09............................................. 90 92,587
Howard County, GO, Prerefunded 8/15/03 @ 102
5.25%, 08/15/12............................................. 250 260,312
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
MARYLAND -- Continued
Maryland Economic Development Corporation, VRDN, LOC:
NationsBank Trust**
3.90%, 12/07/99........................................... $1,000 $ 1,000,000
Maryland National Capital Park & Planning Commission --
Prince George's County, GO, Prerefunded 7/01/03 @ 102
5.15%, 07/01/11........................................... 10 10,375
Maryland National Capital Park & Planning Commission --
Prince George's County, GO, Unrefunded Balance
5.15%, 07/01/11........................................... 290 289,638
Maryland State Community Development, RB, Administration
Department of Housing & Community Development
5.00%, 01/01/05........................................... 860 865,375
Maryland State Community Development, RB, Administration
Department of Housing & Community Development,
Infrastructure
5.125%, 06/01/17.......................................... 325 305,094
5.15%, 06/01/22........................................... 390 361,725
Maryland State Community Development, RB, Administration
Department of Housing & Community Development, Multi-
family
5.05%, 05/15/18........................................... 250 230,000
Maryland State Health & Higher Educational Facilities
Authority, RB, INS: AMBAC, ETM
4.10%, 07/01/01........................................... 900 898,875
Maryland State Health & Higher Educational Facilities
Authority, Anne Arundel County Medical Center, INS: FSA
5.125%, 07/01/28.......................................... 1,015 895,737
</TABLE>
See Accompanying Notes to Financial Statements.
29
<PAGE>
M.S.D.&T. Funds, Inc.
MARYLAND TAX-EXEMPT BOND FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
MARYLAND -- Continued
Maryland State Health & Higher Educational Facilities
Authority, RB, Charity Obligation
5.00%, 11/01/29........................................... $ 750 $ 650,625
Maryland State Health & Higher Educational Facilities
Authority, College of Notre Dame, INS: MBIA
4.45%, 10/01/12........................................... 290 263,538
Maryland State Health & Higher Educational Facilities
Authority, RB, Francis Scott Key Medical Center, INS: FGIC
5.00%, 07/01/23........................................... 400 351,500
Maryland State Health & Higher Educational Facilities
Authority, RB, Helix Health Inc., INS: AMBAC, ETM
5.125%, 07/01/11.......................................... 600 596,250
5.125%, 07/01/12.......................................... 555 545,981
Maryland State Health & Higher Educational Facilities
Authority, RB, Howard County General Hospital, ETM
5.50%, 07/01/21........................................... 335 327,463
Maryland State Health & Higher Educational Facilities
Authority, RB, Johns Hopkins Hospital
5.25%, 07/01/17........................................... 500 475,000
5.00%, 07/01/23........................................... 300 256,875
Maryland State Health & Higher Educational Facilities
Authority, RB, Loyola College
5.25%, 10/01/29........................................... 500 449,375
Maryland State Health & Higher Educational Facilities
Authority, RB, Loyola College, INS: MBIA
5.375%, 10/01/26.......................................... 50 46,437
Maryland State Health & Higher Educational Facilities
Authority, RB, Prerefunded 11/01/03 @ 100
4.60%, 11/01/26........................................... 1,175 1,177,937
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
MARYLAND -- Continued
Maryland State Health & Higher Educational Facilities
Authority, RB, University of Maryland Medical System, INS:
FGIC
5.40%, 07/01/07........................................... $ 300 $ 307,875
Maryland State Stadium Authority Sports Facilities, RB
5.30%, 03/01/01........................................... 1,260 1,277,325
Maryland State Stadium Authority Lease Revenue, RB, Ocean
City Convention Center
5.375%, 12/15/15.......................................... 400 389,000
Maryland State Transportation Authority, RB
5.50%, 07/01/03........................................... 1,000 1,026,250
5.75%, 07/01/15........................................... 150 149,625
Maryland Water Quality Financing Administration, RB,
Revolving Loan Fund
5.50%, 09/01/11........................................... 200 202,250
5.40%, 09/01/12........................................... 300 309,375
Montgomery County Revenue Authority, RB, Olney Indoor Swim
Project
5.25%, 10/01/12........................................... 250 249,375
Montgomery County, RB, Housing Opportunity Community
Housing Multi-Family, Avalon Knoll, FNMA COLL
5.70%, 07/01/10........................................... 150 152,625
Prince George's County, GO, INS: AMBAC
5.25%, 03/15/03........................................... 500 512,500
Prince George's County, GO, INS: MBIA
5.25%, 03/15/15........................................... 400 388,000
Saint Mary's County, GO
5.50%, 10/01/14........................................... 1,000 1,001,250
University of Maryland System Auxiliary Facilities &
Tuition, RB
5.125%, 04/01/13.......................................... 400 389,500
5.00%, 04/01/15........................................... 500 472,500
</TABLE>
See Accompanying Notes to Financial Statements.
30
<PAGE>
M.S.D.&T. Funds, Inc.
MARYLAND TAX-EXEMPT BOND FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
MARYLAND -- Continued
Washington County, GO, INS: FGIC
5.25%, 01/01/06............................................ $ 200 $ 204,500
5.00%, 01/01/16............................................ 675 625,219
Washington Suburban Sanitary District, GO, General
Construction, Prerefunded 6/01/01 @ 102
6.90%, 06/01/09............................................ 285 301,388
Wicomico County, GO, INS: FGIC
4.05%, 02/01/07............................................ 250 237,188
5.00%, 02/01/15............................................ 755 707,813
Worcester County, GO
5.02%, 08/01/08............................................ 1,310 1,331,288
-----------
TOTAL MUNICIPAL BONDS
(Cost $29,623,196)......................................... 28,824,008
-----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----
<S> <C> <C>
INVESTMENT COMPANIES -- 3.3%
Goldman Sachs Financial Square Tax-Free Money Market
Fund.................................................... 348,302 $ 348,302
Provident Institutional Funds--MuniFund.................. 656,337 656,337
-----------
TOTAL INVESTMENT COMPANIES
(Cost $1,004,639)....................................... 1,004,639
-----------
TOTAL INVESTMENTS IN SECURITIES -- 98.8%
(Cost $30,627,836*)................................................ 29,828,647
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.2%....................... 370,946
-----------
NET ASSETS -- 100.0%
(equivalent to $10.36 per share based on 2,914,137 shares
outstanding)...................................................... $30,199,593
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($30,199,593 / 2,914,137).......................................... $10.36
======
</TABLE>
- --------
* Aggregate cost for Federal income tax purposes. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost.................................... $ 127,676
Excess of tax cost over value.................................... $(926,865)
</TABLE>
See Accompanying Notes to Financial Statements.
31
<PAGE>
M.S.D.&T. Funds, Inc.
INTERMEDIATE TAX-EXEMPT BOND FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Alabama -- 2.2%
Alabama State, GO
4.60%, 10/01/05........................................... $2,000 $ 1,985,000
-----------
Alaska -- 1.1%
University of Alaska, RB, INS: FSA
4.10%, 10/01/06........................................... 1,000 952,500
-----------
Arizona -- 3.5%
Arizona State Transportation Authority, RB, INS: AMBAC
5.00%, 07/01/03........................................... 3,000 3,060,000
-----------
Connecticut -- 3.5%
Connecticut State, GO
5.50%, 10/01/00........................................... 1,000 1,013,750
5.00%, 12/01/02........................................... 2,000 2,040,000
-----------
3,053,750
-----------
Delaware -- 5.0%
Delaware State, GO
4.25%, 03/01/02........................................... 2,375 2,372,031
Delaware Transportation Authority, RB
5.70%, 07/01/06........................................... 2,000 2,067,500
-----------
4,439,531
-----------
District of Columbia -- 3.5%
District of Columbia, RB, Howard University, INS: MBIA
5.25%, 10/01/02........................................... 3,040 3,100,800
-----------
Georgia -- 8.5%
Atlanta Water and Sewer, RB, Prerefunded 1/1/04 @ 102
4.75%, 01/01/23........................................... 2,000 2,042,500
Fulton County, GO
4.70%, 01/01/02........................................... 1,300 1,308,125
Private Colleges & Universities Authority, RB, Emory
University
5.375%, 11/01/05.......................................... 4,000 4,160,000
-----------
7,510,625
-----------
Illinois -- 8.0%
Elgin County, GO
5.50%, 01/01/01........................................... 1,200 1,214,964
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Illinois -- Continued
Illinois Education Facilities Authority, RB, Prerefunded
12/1/03 @ 102
5.70%, 12/01/25........................................... $3,625 $ 3,837,969
Illinois State Highway, RB
5.00%, 01/01/04........................................... 2,000 2,012,500
-----------
7,065,433
-----------
Kentucky -- 2.3%
Kentucky State Turnpike Authority, RB, Economic Development
Road Revenue, INS: AMBAC
5.00%, 07/01/02........................................... 2,000 2,032,500
-----------
Louisiana -- 2.3%
Louisiana State, GO, INS: FGIC
5.50%, 04/15/02........................................... 2,000 2,052,500
-----------
Maryland -- 6.7%
Cecil County, GO, INS: FGIC
6.50%, 12/01/99........................................... 850 850,059
Howard County, GO, CPI, Prerefunded 02/15/01 @ 100
5.75%, 02/15/02........................................... 1,000 1,018,750
Maryland Economic Development Corp., VRDN, LOC: Nationsbank
Trust**
3.90%, 12/07/99........................................... 1,000 1,000,000
Maryland Health and Higher Education--Helix Health, RB,
ETM, INS: AMBAC
4.10%, 07/01/01........................................... 1,000 998,750
Maryland State, GO
4.50%, 10/15/00........................................... 1,000 1,005,190
Worcester County, GO
5.00%, 08/01/00........................................... 1,050 1,057,140
-----------
5,929,889
-----------
Massachusetts -- 5.5%
Massachusetts State, GO, Construction Loan, INS: MBIA
5.00%, 01/01/01........................................... 1,420 1,432,098
Massachusetts State, GO, Construction Loan, INS: FGIC
5.00%, 06/01/01........................................... 1,260 1,274,175
</TABLE>
See Accompanying Notes to Financial Statements.
32
<PAGE>
M.S.D.&T. Funds, Inc.
INTERMEDIATE TAX-EXEMPT BOND FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Massachusetts -- Continued
Massachusetts State Health and Educational, RB, Prerefunded
7/1/04 @ 100
6.375%, 07/01/16.......................................... $2,000 $ 2,142,500
-----------
4,848,773
-----------
Minnesota -- 3.4%
Minnesota State, GO
4.75%, 06/01/03........................................... 3,000 3,030,000
-----------
Nebraska -- 2.6%
Nebraska Public Power District, RB, INS: MBIA
5.00%, 01/01/03........................................... 2,260 2,293,900
-----------
New Jersey -- 2.3%
New Jersey Economic Development, RB, INS: FSA
5.00%, 05/01/05........................................... 2,000 2,022,500
-----------
New Mexico -- 3.4%
Albuquerque Water & Sewer, RB
5.50%, 07/01/01........................................... 1,000 1,020,000
Bernalillo County, GO
3.875%, 08/01/03.......................................... 2,000 1,955,000
-----------
2,975,000
-----------
New York -- 3.2%
New York State Dorm Authority , St. Johns Fisher College,
RB, Prerefunded 7/1/01 @ 102
6.75%, 07/01/11........................................... 2,670 2,823,525
-----------
North Carolina -- 1.1%
Wake County, GO
4.80%, 03/01/02........................................... 1,000 1,011,250
-----------
Ohio -- 1.1%
Ohio State Public Facilities Commission, RB, Higher
Educational Capital Facilities
4.75%, 05/01/01........................................... 1,000 1,007,500
-----------
Oklahoma -- 2.9%
Tulsa Community College Area School District, GO
4.00%, 04/01/03........................................... 2,575 2,539,594
-----------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Oregon -- 1.5%
Lane County of Oregon Community College, GO
5.20%, 06/01/02........................................... $1,300 $ 1,327,625
-----------
Pennsylvania -- 5.2%
Pennsylvania Industrial Development, RB, Prerefunded 7/1/01
@ 102
7.00%, 01/01/11........................................... 2,000 2,120,000
Pennsylvania State, GO
4.625%, 05/01/00.......................................... 1,000 1,002,750
Pennsylvania State, GO, INS: AMBAC
5.125%, 03/15/02.......................................... 1,440 1,465,200
-----------
4,587,950
-----------
South Carolina -- 2.9%
South Carolina Transportation, RB, INS: MBIA
5.00%, 10/01/04........................................... 2,495 2,535,544
-----------
Texas -- 7.4%
Dallas Waterworks and Sewer, GO
4.90%, 04/01/05........................................... 2,335 2,340,838
Texas Municipal Power Agency, GO, INS: MBIA
5.80%, 09/01/03........................................... 3,000 3,131,250
University of Texas, RB
6.00%, 08/15/01........................................... 1,000 1,026,250
-----------
6,498,338
-----------
Utah -- 2.3%
Alpine School District, GO
5.40%, 03/15/04........................................... 2,000 2,032,500
-----------
Virginia -- 2.4%
Fairfax County, SAW, RB, Prerefunded 6/1/02 @ 102
5.625%, 06/01/10.......................................... 2,000 2,092,500
-----------
Washington -- 2.8%
Seattle, GO
5.10%, 12/01/07........................................... 2,455 2,467,275
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
33
<PAGE>
M.S.D.&T. Funds, Inc.
INTERMEDIATE TAX-EXEMPT BOND FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C> <C>
Wisconsin -- 1.3%
Milwaukee Technical College District, GO
3.25%, 06/01/00..................................... $1,150 $ 1,143,514
-----------
TOTAL MUNICIPAL BONDS
(Cost $86,718,598).................................. 86,419,816
-----------
<CAPTION>
Number
of Shares Value
--------- -----
<S> <C> <C> <C>
INVESTMENT COMPANIES -- 0.8%
Goldman Sachs Financial Square Tax-Free Money Market
Fund................................................ 75,598 75,598
Provident Institutional
Funds -- MuniFund................................... 591,118 591,118
-----------
TOTAL INVESTMENT COMPANIES
(Cost $666,716)..................................... 666,716
-----------
TOTAL INVESTMENTS IN SECURITIES -- 98.7%
(Cost $87,385,314*)................................. 87,086,532
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.3%................... 1,204,257
-----------
NET ASSETS -- 100.0%
(equivalent to $9.83 per share based on 8,982,176 shares
outstanding)................................................... $88,290,789
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($88,290,789 / 8,982,176)...................................... $9.83
=====
</TABLE>
- --------
* Aggregate cost for Federal income tax purposes. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost...................................... $ 128,838
Excess of tax cost over value...................................... $(427,620)
</TABLE>
See Accompanying Notes to Financial Statements.
34
<PAGE>
M.S.D.&T. Funds, Inc.
NATIONAL TAX-EXEMPT BOND FUND
Statement of Net Assets
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Alabama -- 1.3%
Alabama State, GO
4.60%, 10/01/05......................................... $ 400 $ 397,000
Birmingham, GO
5.00%, 04/01/19......................................... 2,000 1,797,500
------------
2,194,500
------------
Arizona -- 2.2%
Arizona State Transportation Authority, INS: AMBAC
5.00%, 07/01/03......................................... 2,000 2,040,000
Maricopa County School District, GO, INS: FGIC
4.00%, 07/01/10......................................... 2,000 1,810,000
------------
3,850,000
------------
Colorado -- 0.9%
Colorado Springs, RB, Utility Revenue, ETM
5.875%, 11/15/17........................................ 1,500 1,561,875
------------
Connecticut -- 3.6%
Connecticut State, GO
5.00%, 12/01/02......................................... 3,000 3,060,000
5.00%, 06/15/05......................................... 3,200 3,260,000
------------
6,320,000
------------
Delaware -- 2.7%
Delaware State Economic Development Authority, RB,
Osteopathic Hospital Assoc., ETM
6.75%, 01/01/13......................................... 1,500 1,650,000
Delaware Transportation Authority, RB
5.70%, 07/01/06......................................... 3,000 3,101,250
------------
4,751,250
------------
Florida -- 6.1%
Brevard County, GO, INS: AMBAC
5.375%, 09/01/11........................................ 1,180 1,200,650
Florida Board of Education, RB
5.00%, 06/01/13......................................... 5,000 4,775,000
Florida State, GO, Jacksonville Transportation,
Prerefunded 07/01/02 @ 101
6.40%, 07/01/22......................................... 2,500 2,646,875
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C> <C> <C> <C>
Florida -- Continued
Seacoast Florida Authority Water & Sewer, RB,
INS: FGIC
5.50%, 03/01/16............................. $2,000 $ 1,975,000
------------
10,597,525
------------
Georgia -- 1.2%
Atlanta Water and Sewer, RB, Prerefunded
1/1/04 @ 102
4.750%, 01/01/23............................ 2,000 2,042,500
------------
Illinois -- 7.8%
Chicago Public Building Commission, GO, INS:
FGIC
5.125%, 02/01/03............................ 2,000 2,037,500
Illinois Education Facilities Authority, GO,
Prerefunded 12/1/03 @ 102
5.70%, 12/01/25............................. 1,000 1,058,750
Illinois Education Northwestern University,
MPB 11/1/06 @ 100
4.80%, 11/01/32............................. 3,000 3,000,000
Illinois Education Northwestern University,
MPB 11/1/13 @ 100
5.20%, 11/01/32............................. 3,500 3,381,875
Illinois State, GO
5.25%, 04/01/07............................. 4,000 4,065,000
------------
13,543,125
------------
Indiana -- 2.5%
Eagle Union Middle School Building, GO, INS:
AMBAC
5.75%, 07/15/12............................. 2,055 2,116,650
5.75%, 07/15/13............................. 2,180 2,193,625
------------
4,310,275
------------
Kansas -- 1.3%
Johnson County, GO
5.450%, 09/01/02............................ 2,120 2,180,950
------------
Maryland -- 15.3%
Anne Arundel County, GO
5.00%, 09/01/12............................. 2,000 1,942,500
Baltimore County, GO
5.25%, 06/01/11............................. 1,000 1,008,750
</TABLE>
See Accompanying Notes to Financial Statements.
35
<PAGE>
M.S.D.&T. Funds, Inc.
NATIONAL TAX-EXEMPT BOND FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Maryland -- Continued
Baltimore County Metro District, GO
6.80%, 04/01/00......................................... $1,000 $ 1,009,240
Carroll County, GO
5.125%, 12/01/13........................................ 1,000 971,250
Frederick County, GO
5.25%, 07/01/15......................................... 2,925 2,837,250
Howard County, GO, Prerefunded 02/15/03 @101
5.25%, 02/15/06......................................... 1,670 1,720,100
Howard County, GO, Prerefunded 08/15/03 @ 102
5.25%, 08/15/09......................................... 450 469,125
Howard County, GO, Unrefunded Balance
5.25%, 08/15/09......................................... 550 560,775
Maryland Health and Education, RB, Helix Health Inc.,
INS: AMBAC, ETM
5.125%, 07/01/11........................................ 2,000 1,987,500
5.125%, 07/01/12........................................ 3,000 2,951,250
Maryland National Capital Park & Planning Commission--
Prince George's County, GO, Prerefunded 07/01/05 @ 101
5.00%, 07/01/08......................................... 190 194,512
Maryland National Capital Park & Planning Commission--
Prince George's County, GO, Unrefunded Balance
5.00%, 07/01/08......................................... 810 813,038
Maryland State Community Development, RB, Administration
Department of Housing & Community Development,
Residential
5.70%, 09/01/19......................................... 2,025 1,987,030
Maryland State Community Development, RB, Administration
Department of Housing & Community Development, Multi-
Family
6.70%, 05/15/27......................................... 1,000 1,041,250
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Maryland -- Continued
Maryland State Community Development, RB, Administration
Department of Housing & Community Development, Single
Family
6.55%, 04/01/17......................................... $1,290 $ 1,325,475
Maryland State Health & Higher Education Facilities
Authority, RB, Loyola College, INS: MBIA
5.375%, 10/01/26........................................ 2,500 2,321,875
Montgomery County, GO
5.50%, 04/01/16......................................... 1,000 988,750
Prince George's County, RB, Pkg Authority Revenue Justice
Center Facility Project
6.35%, 05/01/04......................................... 1,000 1,047,500
Washington Suburban Sanitation District, GO
5.25%, 06/01/16......................................... 1,650 1,590,188
------------
26,767,358
------------
Massachusetts -- 7.5%
Massachusetts State, GO, INS: FSA
5.00%, 06/01/06......................................... 2,000 2,020,000
Massachusetts State Special Obligation, RB, Prerefunded
06/01/02 @100, INS: AMBAC
6.00%, 06/01/13......................................... 3,600 3,735,000
Massachusetts State Water Authority, GO, INS: MBIA,
Prerefunded 12/1/04 @ 102
5.25%, 12/01/20......................................... 5,000 5,231,250
Massachusetts State Water Pollution, RB, Abatement Pooled
Loan Program
5.70%, 02/01/11......................................... 2,010 2,080,350
------------
13,066,600
------------
Michigan -- 2.5%
Ann Arbor, GO
4.00%, 09/01/09......................................... 1,335 1,211,513
4.00%, 09/01/10......................................... 1,340 1,194,275
</TABLE>
See Accompanying Notes to Financial Statements.
36
<PAGE>
M.S.D.&T. Funds, Inc.
NATIONAL TAX-EXEMPT BOND FUND
Statement of Net Assets -- Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Michigan -- Continued
Michigan State Building Authority, RB, INS: AMBAC
6.75%, 10/01/07......................................... $1,800 $ 1,910,250
------------
4,316,038
------------
Minnesota -- 2.6%
Minnesota State, GO
4.75%, 06/01/03......................................... 3,475 3,509,750
Minnesota State, GO, Prerefunded 10/01/04 @ 100
6.00%, 10/01/14......................................... 1,000 1,058,750
------------
4,568,500
------------
Nebraska -- 1.1%
American Public Energy, Nebraska Gas Supply, RB, INS:
AMBAC
5.00%, 06/01/06......................................... 2,000 1,975,000
------------
Nevada -- 1.2%
Clark County, GO, Las Vegas Convention & Visitors
Authority, INS: MBIA
5.50%, 07/01/09......................................... 2,075 2,124,281
------------
New Jersey -- 3.5%
New Jersey Economic Development, GO, INS: FSA
5.00%, 05/01/05......................................... 2,000 2,022,500
New Jersey State Highway Authority, RB, Garden State
Parkway General Revenue, ETM
6.00%, 01/01/19......................................... 4,005 4,165,200
------------
6,187,700
------------
New York -- 7.1%
New York State Power Authority, RB, General Purpose,
Prerefunded 01/01/03 @102
5.25%, 01/01/18......................................... 2,250 2,337,188
New York State Power Authority, RB, Prerefunded 01/01/03
@102, INS: FGIC
5.25%, 01/01/18......................................... 1,375 1,428,281
New York State Dorm Authority, RB, Westchester County,
INS: AMBAC
5.250%, 08/01/15........................................ 2,000 1,907,500
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
New York -- Continued
New York State Energy Research and Development Authority,
RB, INS: MBIA
5.15%, 03/01/16......................................... $3,190 $ 2,966,700
Triborough Bridge & Tunnel Authority, RB, General Purpose
6.00%, 01/01/12......................................... 2,000 2,115,000
Westchester County, GO, Partially ETM
6.70%, 02/01/05......................................... 1,560 1,702,350
------------
12,457,019
------------
Ohio -- 2.9%
Cleveland Waterworks Revenue, RB, INS: MBIA
5.50%, 01/01/21......................................... 3,000 2,898,750
Ohio State, GO
6.65%, 09/01/09......................................... 2,000 2,190,000
------------
5,088,750
------------
Oklahoma -- 0.5%
Oklahoma State Turnpike, RB, ETM
4.70%, 01/01/06......................................... 815 806,850
------------
Pennsylvania -- 8.0%
Avonworth School District, GO
4.25%, 11/15/00......................................... 1,000 1,000,090
Berks County, GO, INS: FGIC
5.60%, 11/15/08......................................... 1,700 1,725,500
Dauphin County General Authority, RB, School District
Pooled Program II, INS: AMBAC
4.45%, 09/01/01......................................... 4,000 4,015,000
Pennsylvania Convention Center Authority, RB, INS: FGIC,
ETM
6.00%, 09/01/19......................................... 2,675 2,778,655
Pennsylvania State Higher Educational Facilities, RB,
University of Pennsylvania
5.90%, 09/01/15......................................... 2,500 2,537,500
Pittsburgh Water & Sewer, RB, INS: FGIC, ETM
6.00%, 09/01/16......................................... 1,755 1,836,169
------------
13,892,914
------------
</TABLE>
See Accompanying Notes to Financial Statements.
37
<PAGE>
M.S.D.&T. Funds, Inc.
NATIONAL TAX-EXEMPT BOND FUND
Statement of Net Assets -- Concluded
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Rhode Island -- 0.9%
Rhode Island State, RB, Unrefunded Balance, INS: FGIC
6.25%, 06/15/07......................................... $1,545 $ 1,628,044
------------
Texas -- 4.0%
Dallas Independent School District, GO, Unrefunded
Balance, INS: PSFG
5.60%, 08/15/04......................................... 1,080 1,117,800
Dallas Waterworks and Sewer, GO
4.90%, 04/01/05......................................... 2,000 2,005,000
San Antonio Electric & Gas, RB, Unrefunded Balance
6.00%, 02/01/08......................................... 1,785 1,843,013
Trinity River Authority Waste Water Systems, GO,
Prerefunded 08/01/03 @ 100
5.75%, 08/01/08......................................... 135 140,569
Trinity River Authority Waste Water Systems, RB, INS:
AMBAC
5.75%, 08/01/08......................................... 1,865 1,909,294
------------
7,015,676
------------
Utah -- 2.6%
Davis County School District, GO
4.875%, 06/01/05........................................ 2,700 2,720,250
Utah County Hospital Revenue, RB, IHC Health, INS: MBIA
5.25%, 08/15/26......................................... 2,000 1,790,000
------------
4,510,250
------------
Virginia -- 2.7%
Norfolk, GO, INS: MBIA
5.75%, 06/01/13......................................... 1,500 1,543,125
Virginia State Transportation Board, RB, US Route 58
5.625%, 05/15/13........................................ 3,000 3,082,500
------------
4,625,625
------------
Washington -- 1.4%
Seattle, GO, Correctional Facilities Improvements
5.625%, 12/01/16........................................ 2,500 2,471,875
------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
----- -----
<S> <C> <C>
Wisconsin -- 1.7%
Wisconsin State, GO
5.125%, 11/01/11....................................... $3,000 $ 2,962,500
------------
TOTAL MUNICIPAL BONDS
(Cost $164,189,689).................................... 165,816,980
------------
<CAPTION>
Number
of Shares Value
--------- -----
<S> <C> <C>
INVESTMENT COMPANIES -- 3.7%
Goldman Sachs Financial Square Tax-Free Money Market
Fund................................................... 5,145,013 5,145,013
Provident Institutional Funds --MuniFund................ 1,361,543 1,361,543
------------
TOTAL INVESTMENT COMPANIES
(Cost $6,506,556)................................................ 6,506,556
------------
TOTAL INVESTMENTS IN SECURITIES -- 98.8%
(Cost $170,696,245*).............................................. 172,323,536
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.2%...................... 2,092,866
------------
NET ASSETS -- 100.0%
(equivalent to $9.58 per share based on 18,200,682 shares
outstanding)...................................................... $174,416,402
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($174,416,402 / 18,200,682)....................................... $9.58
=====
</TABLE>
- --------
* Aggregate cost for Federal income tax purposes. The aggregate gross
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Excess of value over tax cost................................... $ 2,940,812
Excess of tax cost over value................................... $(1,313,521)
</TABLE>
See Accompanying Notes to Financial Statements.
38
<PAGE>
M.S.D.&T. Funds, Inc.
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
ADR American Depository Receipt
AMBAC American Municipal Bond Assurance Corp.
ARM Adjustable Rate Mortgage
BAN Bond Anticipation Notes
CGI Consolidated General Improvement
COP Certificates of Deposit
CPI Consolidated Public Improvement
ETM Escrowed to Maturity in U.S. Government Obligations
FGIC Financial Guaranty Insurance Co.
FRN Floating Rate Notes
FSA Financial Surety Assurance
GDR Global Depository Receipt
GO General Obligation
GPI General Public Improvement
GTD Guaranteed
IDA Industrial Development Authority
INS Insured
LIC Line of Credit
LOC Letter of Credit
MBIA Municipal Bond Investor Association
MPB Municipal Put Bonds
PCR Pollution Control Revenue
PCRB Pollution Control Revenue Bonds
PSFG Permanent School Fund Guaranty
RAN Revenue Anticipation Notes
RB Revenue Bonds
SAW State Aid Withholding
SPA Standby Purchase Agreement
TAN Tax Anticipation Notes
TECP Tax-Exempt Commercial Paper
TRAN Tax and Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
</TABLE>
39
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Operations
For the Six Months Ended November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Prime Government Tax-Exempt
Money Market Money Market Money Market
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest............................ $13,230,499 $11,052,859 $2,613,905
----------- ----------- ----------
EXPENSES:
Investment advisory fees............ 629,255 532,534 199,630
Administration fees................. 314,628 266,267 99,815
Accounting agent fees............... 50,340 42,603 23,956
Custodian fees...................... 19,363 16,334 7,053
Directors' fees..................... 9,761 8,058 2,799
Transfer agent fees................. 15,117 12,400 13,069
Professional Services............... 48,039 40,397 14,068
Other............................... 29,928 24,246 12,816
----------- ----------- ----------
1,116,431 942,839 373,206
Fees waived by Investment Adviser... (50,340) (63,904) (23,956)
Fees waived by Administrator........ (122,208) (80,135) (49,806)
----------- ----------- ----------
TOTAL EXPENSES.................... 943,883 798,800 299,444
----------- ----------- ----------
NET INVESTMENT INCOME................ 12,286,616 10,254,059 2,314,461
----------- ----------- ----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on
investments sold................... -- -- (6,309)
----------- ----------- ----------
Net gain (loss) on investments...... -- -- (6,309)
----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........... $12,286,616 $10,254,059 $2,308,152
=========== =========== ==========
</TABLE>
See Accompanying Notes to Financial Statements.
40
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Operations
For the Six Months Ended November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Growth Equity Equity International Diversified
& Income Income Growth Equity Real Estate
Fund Fund Fund Fund Fund
-------- ------ ------ ------------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest............... $ 199,314 $ 345,055 $ 54,973 $ 76,230 $ 12,753
Dividends.............. 2,494,234 3,721,185 184,824 497,351(1) 286,704
----------- ------------ ---------- ----------- -----------
TOTAL INVESTMENT
INCOME.............. 2,693,548 4,066,240 239,797 573,581 299,457
----------- ------------ ---------- ----------- -----------
EXPENSES:
Investment advisory
fees.................. 1,304,568 911,274 148,951 356,332 32,314
Administration fees.... 271,785 189,849 31,031 55,677 5,049
Accounting agent fees.. 65,228 45,564 7,448 22,271 1,212
Custodian fees......... 6,251 9,065 3,747 33,436 3,533
Directors' fees........ 7,968 5,669 907 1,595 149
Transfer agent fees.... 17,771 13,038 11,212 12,394 10,292
Professional Services.. 39,841 28,525 4,470 8,054 732
Registration fees...... 9,916 5,617 4,239 5,767 3,616
Other.................. 18,476 14,083 3,550 8,468 1,653
----------- ------------ ---------- ----------- -----------
1,741,804 1,222,684 215,555 503,994 58,550
Fees waived by
Investment Advisers... (219,806) (159,531) (35,573) (36,584) (17,341)
Fees waived by
Administrator......... -- -- (6,206) (21,995) (817)
----------- ------------ ---------- ----------- -----------
TOTAL EXPENSES....... 1,521,998 1,063,153 173,776 445,415 40,392
----------- ------------ ---------- ----------- -----------
NET INVESTMENT INCOME... 1,171,550 3,003,087 66,021 128,166 259,065
----------- ------------ ---------- ----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY:
Net realized gain
(loss) from:
Investments........... 7,590,067 20,110,406 348,587 8,159,146 (101,556)
Foreign currency
transactions......... -- -- -- (200,222) --
----------- ------------ ---------- ----------- -----------
7,590,067 20,110,406 348,587 7,958,924 (101,556)
----------- ------------ ---------- ----------- -----------
Change in net
unrealized
appreciation
(depreciation):
Investments........... 10,665,254 (36,763,463) 5,389,121 9,109,650 (1,095,345)
Translation of assets
and liablilities in
foreign currencies... -- -- -- 2,647 --
----------- ------------ ---------- ----------- -----------
10,665,254 (36,763,463) 5,389,121 9,112,297 (1,095,345)
----------- ------------ ---------- ----------- -----------
Net gain (loss) on
investments and
foreign currency
transactions.......... 18,255,321 (16,653,057) 5,737,708 17,071,221 (1,196,901)
----------- ------------ ---------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $19,426,871 $(13,649,970) $5,803,729 $17,199,387 $ (937,836)
=========== ============ ========== =========== ===========
</TABLE>
- --------
(1) Net of witholding taxes of $65,322
See Accompanying Notes to Financial Statements.
41
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Operations
For the Six Months Ended November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Limited Total Maryland Intermediate National
Maturity Return Tax-Exempt Tax-Exempt Tax-Exempt
Bond Fund Bond Fund Bond Fund Bond Fund Bond Fund
--------- --------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest............... $ 4,953,192 $ 3,731,325 $ 651,129 $ 1,876,223 $ 4,384,625
----------- ----------- ----------- ----------- -----------
EXPENSES:
Investment advisory
fees.................. 287,200 198,266 69,429 224,360 437,065
Administration fees.... 102,572 70,809 17,357 56,090 109,266
Accounting agent fees.. 24,617 16,994 5,554 17,949 34,965
Custodian fees......... 7,716 9,235 3,465 6,100 6,849
Directors' fees........ 3,074 2,051 508 1,676 3,286
Transfer agent fees.... 13,689 12,065 10,994 11,447 11,620
Professional Services.. 15,415 10,449 2,515 8,474 16,568
Registration fees...... 7,826 4,954 1,306 4,180 4,484
Pricing service fees... 3,746 11,238 4,066 3,188 5,572
Other.................. 6,575 4,419 1,113 3,543 6,901
----------- ----------- ----------- ----------- -----------
472,430 340,480 116,307 337,007 636,576
Fees waived by
Investment Adviser.... (82,658) (73,642) (47,228) (125,642) (223,930)
Fees waived by
Administrator......... (20,514) (11,924) (6,592) (9,441) (19,287)
----------- ----------- ----------- ----------- -----------
TOTAL EXPENSES....... 369,258 254,914 62,487 201,924 393,359
----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME... 4,583,934 3,476,411 588,642 1,674,299 3,991,266
----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain
(loss)................ (7,059) (457,107) (29,034) (941,542) (2,090,923)
Change in net
unrealized
appreciation
(depreciation)....... (1,784,922) (2,061,772) (1,037,178) (616,602) (4,099,517)
----------- ----------- ----------- ----------- -----------
Net gain (loss) on
investments........... (1,791,981) (2,518,879) (1,066,212) (1,558,144) (6,190,440)
----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 2,791,953 $ 957,532 $ (477,570) $ 116,155 $(2,199,174)
=========== =========== =========== =========== ===========
</TABLE>
See Accompanying Notes to Financial Statements.
42
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Prime Prime Government Government
Money Market Money Market Money Market Money Market
Fund For the Fund For the Fund For the Fund For the
Six Months Ended Year Ended Six Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Operations:
Net investment income.. $ 12,286,616 $ 23,776,832 $ 10,254,059 $ 20,372,197
Net gain (loss) on
investments........... -- 3,130 -- --
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 12,286,616 23,779,962 10,254,059 20,372,197
------------ ------------ ------------ ------------
Distributions to
shareholders from net
investment income...... (12,286,616) (23,776,832) (10,254,059) (20,372,197)
Increase (decrease) in
net assets derived from
capital share
transactions........... 5,406,690 82,081,604 (26,398,245) 54,389,002
------------ ------------ ------------ ------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 5,406,690 82,084,734 (26,398,245) 54,389,002
NET ASSETS:
Beginning of period.... 530,835,331 448,750,597 445,522,205 391,133,203
------------ ------------ ------------ ------------
End of period.......... $536,242,021 $530,835,331 $419,123,960 $445,522,205
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Tax-Exempt Tax-Exempt
Money Market Money Market
Fund For the Fund For the
Six Months Ended Year Ended
November 30, 1999 May 31, 1999
----------------- ------------
(Unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income......................... $ 2,314,461 $ 3,242,143
Net gain (loss) on investments................ (6,309) 306
------------ ------------
Net increase (decrease) in net assets
resulting from operations.................... 2,308,152 3,242,449
------------ ------------
Distributions to shareholders from:
Net investment income......................... (2,314,461) (3,242,143)
------------ ------------
Proceeds of shares issued due to exchange of
Tax-Exempt Money Market Fund (Trust) shares
for Tax-Exempt Money Market Fund shares....... 61,657,387
Increase (decrease) in net assets derived from
capital share transactions.................... 19,711,515 (8,401,564)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........ 19,705,206 53,256,129
NET ASSETS:
Beginning of period........................... 143,220,733 89,964,604
------------ ------------
End of period................................. $162,925,939 $143,220,733
============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
43
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Growth & Growth & Equity
Income Fund Income Fund Income Fund Equity
For the For the For the Income Fund
Six Months Ended Year Ended Six Months Ended For the Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Operations:
Net investment income.. $ 1,171,550 $ 3,117,850 $ 3,003,087 $ 5,392,736
Net realized gain
(loss) on
investments........... 7,590,067 31,093,571 20,110,406 59,394,028
Net increase (decrease)
in unrealized
appreciation
(depreciation) on
investments........... 10,665,254 32,083,447 (36,763,463) (21,415,473)
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 19,426,871 66,294,868 (13,649,970) 43,371,291
------------ ------------ ------------ ------------
Distributions to
shareholders from:
Net investment income.. (1,761,910) (2,509,416) (2,899,414) (5,358,080)
Net realized capital
gains................. -- (10,393,342) -- (34,800,822)
------------ ------------ ------------ ------------
Total distributions to
shareholders.......... (1,761,910) (12,902,758) (2,899,414) (40,158,902)
------------ ------------ ------------ ------------
Capital Share
Transactions:
Proceeds of shares
sold.................. 19,693,993 62,772,358 3,166,726 7,959,869
Cost of shares
redeemed.............. (19,299,544) (74,027,633) (17,265,378) (48,808,503)
Value of shares issued
in reinvestment of
dividends............. 560,579 11,036,126 122,134 31,970,933
------------ ------------ ------------ ------------
Increase (decrease) in
net assets derived from
capital share
transactions........... 955,028 (219,149) (13,976,518) (8,877,701)
------------ ------------ ------------ ------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 18,619,989 53,172,961 (30,525,902) (5,665,312)
NET ASSETS:
Beginning of period.... 427,037,618 373,864,657 314,306,185 319,971,497
------------ ------------ ------------ ------------
End of period.......... $445,657,607 $427,037,618 $283,780,283 $314,306,185
============ ============ ============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
44
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Equity Equity International
Growth Fund Growth Fund Equity Fund International
For the For the For the Equity Fund
Six Months Ended Year Ended Six Months Ended For the Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Operations:
Net investment income.. $ 66,021 $ 144,391 $ 128,166 $ 662,558
Net realized gain
(loss) on investments
and foreign currency.. 348,587 4,500,635 7,958,924 5,445,855
Net increase (decrease)
in unrealized
appreciation
(depreciation) on
investments and
translation of assets
and liabilities in
foreign currency...... 5,389,121 3,072,193 9,112,297 (6,983,677)
----------- ----------- ------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 5,803,729 7,717,219 17,199,387 (875,264)
----------- ----------- ------------ ------------
Distributions to
shareholders from:
Net investment income.. (80,009) (156,729) (407,956) (500,860)
Net realized capital
gains................. -- (3,417,673) -- (1,929,077)
----------- ----------- ------------ ------------
Total distributions to
shareholders.......... (80,009) (3,574,402) (407,956) (2,429,937)
----------- ----------- ------------ ------------
Capital Share
Transactions:
Proceeds of shares
sold.................. 4,684,851 10,492,031 45,403,625 46,141,273
Cost of shares
redeemed.............. (2,020,587) (5,201,138) (43,728,044) (48,595,061)
Value of shares issued
in reinvestment of
dividends............. 5,049 3,210,792 66,598 1,657,568
----------- ----------- ------------ ------------
Increase (decrease) in
net assets derived
from capital share
transactions.......... 2,669,313 8,501,685 1,742,179 (796,220)
----------- ----------- ------------ ------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 8,393,033 12,644,502 18,533,610 (4,101,421)
NET ASSETS:
Beginning of period.... 47,520,536 34,876,034 81,300,858 85,402,279
----------- ----------- ------------ ------------
End of period.......... $55,913,569 $47,520,536 $ 99,834,468 $ 81,300,858
=========== =========== ============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
45
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Diversified Real Diversified Real Limited Maturity Limited Maturity
Estate Fund Estate Fund Bond Fund Bond Fund
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ---------------- ----------------- ----------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Operations:
Net investment income.. $ 259,065 $ 318,169 $ 4,583,934 $ 8,767,522
Net realized gain
(loss) on
investments........... (101,556) (180,671) (7,059) 618,107
Net increase (decrease)
in unrealized
appreciation
(depreciation) on
investments........... (1,095,345) (191,425) (1,784,922) (2,292,463)
----------- ---------- ------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ (937,836) (53,927) 2,791,953 7,093,166
----------- ---------- ------------ ------------
Distributions to
shareholders from:
Net investment income.. (229,687) (355,953) (4,592,305) (8,767,522)
Net realized capital
gains................. -- -- -- (383,653)
Return of Capital
Distributions......... -- (9,103) -- --
----------- ---------- ------------ ------------
Total distributions to
shareholders.......... (229,687) (365,056) (4,592,305) (9,151,175)
----------- ---------- ------------ ------------
Capital Share
Transactions:
Proceeds of shares
sold.................. 2,217,552 1,705,488 9,804,089 33,879,887
Cost of shares
redeemed.............. (334,797) (161,537) (11,399,883) (19,269,521)
Value of shares issued
in reinvestment of
dividends............. 24,045 26,951 722,762 1,782,525
----------- ---------- ------------ ------------
Increase (decrease) in
net assets derived
from capital share
transactions.......... 1,906,800 1,570,902 (873,032) 16,392,891
----------- ---------- ------------ ------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 739,277 1,151,919 (2,673,384) 14,334,882
NET ASSETS:
Beginning of period.... 7,829,136 6,677,217 166,257,261 151,922,379
----------- ---------- ------------ ------------
End of period.......... $ 8,568,413 $7,829,136 $163,583,877 $166,257,261
=========== ========== ============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
46
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Total Return Maryland Tax-
Bond Fund For Total Return Exempt Bond Fund Maryland
the Bond Fund For the Tax-Exempt
Six Months Ended For the Year Six Months Ended Bond Fund
November Ended November 30, For the Year Ended
30, 1999 May 31, 1999 1999 May 31, 1999
---------------- ------------ ---------------- ------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Operations:
Net investment income.. $ 3,476,411 $ 6,215,535 $ 588,642 $ 920,156
Net realized gain
(loss) on
investments........... (457,107) 882,355 (29,034) 14,267
Net increase (decrease)
in unrealized
appreciation
(depreciation) on
investments........... (2,061,772) (2,367,146) (1,037,178) (172,632)
------------ ------------ ----------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ 957,532 4,730,744 (477,570) 761,791
------------ ------------ ----------- -----------
Distributions to
shareholders from:
Net investment income.. (3,476,411) (6,215,535) (588,642) (920,156)
Net realized capital
gains................. -- (627,475) -- --
------------ ------------ ----------- -----------
Total Distributions
to Shareholders..... (3,476,411) (6,843,010) (588,642) (920,156)
------------ ------------ ----------- -----------
Capital Share
Transactions:
Proceeds of shares
sold.................. 17,840,417 21,723,424 7,037,769 17,972,231
Cost of shares
redeemed.............. (4,450,143) (14,669,153) (2,400,570) (6,342,407)
Value of shares issued
in reinvestment of
dividends............. 206,517 843,089 63,279 113,379
------------ ------------ ----------- -----------
Increase (decrease) in
net assets derived from
capital share
transactions........... 13,596,791 7,897,360 4,700,478 11,743,203
------------ ------------ ----------- -----------
TOTAL INCREASE
(DECREASE)
IN NET ASSETS.......... 11,077,912 5,785,094 3,634,266 11,584,838
NET ASSETS:
Beginning of period.... 107,148,593 101,363,499 26,565,327 14,980,489
------------ ------------ ----------- -----------
End of period.......... $118,226,505 $107,148,593 $30,199,593 $26,565,327
============ ============ =========== ===========
</TABLE>
- --------
See Accompanying Notes to Financial Statements.
47
<PAGE>
M.S.D.&T. Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Intermediate National
Tax-Exempt Tax-Exempt
Bond Fund Intermediate Bond Fund National
For the Tax-Exempt For the Tax-Exempt
Six Months Bond Fund Six Months Bond Fund
Ended For the Year Ended For the Year
November 30, Ended November 30, Ended
1999 May 31, 1999 1999 May 31, 1999
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Operations:
Net investment income... $ 1,674,299 $ 3,502,977 $ 3,991,266 $ 7,853,868
Net realized gain (loss)
on investments......... (941,542) 1,239,988 (2,090,923) 2,462,303
Net increase (decrease)
in unrealized
appreciation
(depreciation) on
investments............ (616,602) (591,029) (4,099,517) (2,628,395)
----------- ----------- ------------ ------------
Net increase (decrease)
in net assets resulting
from operations........ 116,155 4,151,936 (2,199,174) 7,687,776
----------- ----------- ------------ ------------
Distributions to
shareholders from:
Net investment income... (1,674,880) (3,502,977) (3,992,420) (7,853,868)
Net realized capital
gains.................. -- (721,135) -- (2,125,685)
----------- ----------- ------------ ------------
Total Distributions to
Shareholders......... (1,674,880) (4,224,112) (3,992,420) (9,979,553)
----------- ----------- ------------ ------------
Capital Share
Transactions:
Proceeds of shares
sold................... 6,021,970 7,895,070 9,860,583 15,739,980
Cost of shares
redeemed............... (7,070,654) (11,552,185) (7,326,136) (15,382,582)
Value of shares issued
in reinvestment of
dividends.............. 3,096 631,896 6,596 1,884,977
----------- ----------- ------------ ------------
Increase (decrease) in
net assets derived from
capital share
transactions............ (1,045,588) (3,025,219) 2,541,043 2,242,375
----------- ----------- ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS........... (2,604,313) (3,097,395) (3,650,551) (49,402)
NET ASSETS:
Beginning of period..... 90,895,102 93,992,497 178,066,953 178,116,355
----------- ----------- ------------ ------------
End of period........... $88,290,789 $90,895,102 $174,416,402 $178,066,953
=========== =========== ============ ============
</TABLE>
- --------
See Accompanying Notes to Financial Statements.
48
<PAGE>
M.S.D.&T. Funds, Inc.
Financial Highlights
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
Prime Money Market Fund
----------------------------------------------------------------------------------
For the Six For the Years Ended
Months Ended ----------------------------------------------------------------
November 30, 1999 May 31, 1999 May 31, 1998 May 31, 1997 May 31, 1996 May 31, 1995
----------------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment Income.. 0.0244 0.0486 0.0521 0.0498 0.0532 0.0491
-------- -------- -------- -------- -------- --------
Total From Investment
Operations............ 0.0244 0.0486 0.0521 0.0498 0.0532 0.0491
-------- -------- -------- -------- -------- --------
Less Distributions to
Shareholders from:
Net Investment Income.. (0.0244) (0.0486) (0.0521) (0.0498) (0.0532) (0.0491)
-------- -------- -------- -------- -------- --------
Total Distributions.... (0.0244) (0.0486) (0.0521) (0.0498) (0.0532) (0.0491)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
- ------------------------------------------------------------------------------------------------------------
Total Return............ 2.46% 4.97% 5.33% 5.10% 5.45% 5.02%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (000).......... $536,242 $530,835 $448,751 $368,853 $326,878 $382,059
Ratio of Expenses to
Average Net Assets
After Expense Waiver... 0.38%(1) 0.38% 0.42% 0.43% 0.43% 0.43%
Before Expense Waiver.. 0.44%(1) 0.45% 0.47% 0.48% 0.48% 0.48%
Ratio of Net Investment
Income to Average Net
Assets................ 4.88%(1) 4.84% 5.21% 4.98% 5.33% 4.92%
</TABLE>
<TABLE>
<CAPTION>
Government Money Market Fund
----------------------------------------------------------------------------------
For the Six For the Years Ended
Months Ended ----------------------------------------------------------------
November 30, 1999 May 31, 1999 May 31, 1998 May 31, 1997 May 31, 1996 May 31, 1995
----------------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment Income.. 0.0241 0.0478 0.0515 0.0495 0.0526 0.0485
-------- -------- -------- -------- -------- --------
Total From Investment
Operations............ 0.0241 0.0478 0.0515 0.0495 0.0526 0.0485
-------- -------- -------- -------- -------- --------
Less Distributions to
Shareholders from:
Net Investment Income.. (0.0241) (0.0478) (0.0515) (0.0495) (0.0526) (0.0485)
-------- -------- -------- -------- -------- --------
Total Distributions.... (0.0241) (0.0478) (0.0515) (0.0495) (0.0526) (0.0485)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
- ------------------------------------------------------------------------------------------------------------
Total Return............ 2.43% 4.89% 5.27% 5.06% 5.39% 4.95%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (000).......... $419,124 $445,522 $391,133 $340,809 $264,725 $263,752
Ratio of Expenses to
Average Net Assets
After Expense Waiver... 0.38%(1) 0.38% 0.42% 0.43% 0.43% 0.43%
Before Expense Waiver.. 0.44%(1) 0.45% 0.46% 0.49% 0.48% 0.48%
Ratio of Net Investment
Income to Average Net
Assets................ 4.81%(1) 4.76% 5.15% 4.95% 5.27% 4.85%
</TABLE>
- --------
(1) Annualized
See Accompanying Notes to Financial Statements.
49
<PAGE>
M.S.D.&T. Funds, Inc.
Financial Highlights
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
Tax-Exempt Money Market Fund
----------------------------------------------------------------------------------
For the Six
Months Ended For the Years Ended
November 30, 1999 May 31, 1999 May 31, 1998 May 31, 1997 May 31, 1996 May 31, 1995
----------------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment Income.. 0.0145 0.0285 0.0318 0.0304 0.0321 0.0303
-------- -------- -------- -------- -------- --------
Total From Investment
Operations............ 0.0145 0.0285 0.0318 0.0304 0.0321 0.0303
-------- -------- -------- -------- -------- --------
Less Distributions to
Shareholders from:
Net Investment Income.. (0.0145) (0.0285) (0.0318) (0.0304) (0.0321) (0.0303)
-------- -------- -------- -------- -------- --------
Total Distributions.... (0.0145) (0.0285) (0.0318) (0.0304) (0.0321) (0.0303)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
- ------------------------------------------------------------------------------------------------------------
Total Return............ 1.46% 2.89% 3.22% 3.09% 3.26% 3.08%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (000).......... $162,926 $143,221 $ 89,965 $ 79,492 $ 50,137 $ 69,100
Ratio of Expenses to
Average Net Assets
After Expense Waiver... 0.38%(1) 0.38% 0.43% 0.43% 0.43% 0.43%
Before Expense Waiver.. 0.47%(1) 0.49% 0.50% 0.53% 0.51% 0.52%
Ratio of Net Investment
Income to Average Net
Assets................ 2.90%(1) 2.80% 3.17% 3.05% 3.22% 3.01%
</TABLE>
- --------
(1) Annualized
<TABLE>
<CAPTION>
Growth & Income Fund
----------------------------------------------------------------------------------
For the Six
Months Ended For the Years Ended
November 30, 1999 May 31, 1999 May 31, 1998 May 31, 1997 May 31, 1996 May 31, 1995
----------------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 24.43 $ 21.37 $ 18.25 $ 14.58 $ 13.42 $ 12.14
-------- -------- -------- -------- -------- -------
Income From Investment
Operations:
Net Investment Income.. 0.07 0.18 0.20 0.23 0.33 0.35
Net Realized and
Unrealized Gain (Loss)
on Investments........ 1.04 3.62 5.01 4.19 1.89 1.55
-------- -------- -------- -------- -------- -------
Total From Investment
Operations............ 1.11 3.80 5.21 4.42 2.22 1.90
-------- -------- -------- -------- -------- -------
Less Distributions to
Shareholders from:
Net Investment Income.. (0.10) (0.14) (0.23) (0.25) (0.35) (0.34)
Net Capital Gains...... -- (0.60) (1.86) (0.50) (0.71) (0.28)
-------- -------- -------- -------- -------- -------
Total Distributions.... (0.10) (0.74) (2.09) (0.75) (1.06) (0.62)
-------- -------- -------- -------- -------- -------
Net Asset Value, End of
Period................. $ 25.44 $ 24.43 $ 21.37 $ 18.25 $ 14.58 $ 13.42
======== ======== ======== ======== ======== =======
- ------------------------------------------------------------------------------------------------------------
Total Return............ 4.56% 18.20% 29.40% 31.26% 17.24% 16.22%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (000).......... $445,658 $427,038 $373,864 $142,452 $107,233 $91,277
Ratio of Expenses to
Average Net Assets
After Expense Waiver... 0.70%(1) 0.70% 0.71% 0.73% 0.73% 0.73%
Before Expense Waiver.. 0.80%(1) 0.81% 0.88% 0.89% 0.89% 0.89%
Ratio of Net Investment
Income to Average Net
Assets................ 0.54%(1) 0.80% 0.99% 1.52% 2.38% 2.99%
Portfolio turnover
rate................... 10.15% 26.48% 24.09% 27.10% 45.15% 33.26%
</TABLE>
- --------
(1) Annualized.
See Accompanying Notes to Financial Statements.
50
<PAGE>
M.S.D.&T. Funds, Inc.
Financial Highlights
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
Equity Income Fund Equity Growth Fund
------------------------------------ ------------------------------------
For the For the
Period Period
For the Six For the March 1, For the Six For the March 1,
Months Ended Year Ended 1998 (1) Months Ended Year Ended 1998 (1)
November 30, May 31, to May 31, November 30, May 31, to May 31,
1999 1999 1998 1999 1999 1998
------------ ---------- ---------- ------------ ---------- ----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.25 $ 10.21 $ 10.00 $ 11.48 $ 10.28 $ 10.00
-------- -------- -------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income.. 0.10 0.17 0.04 0.02 0.04 0.02
Net Realized and
Unrealized
Gain (Loss) on
Investments......... (0.55) 1.23 0.19 1.33 2.23 0.27
-------- -------- -------- ------- ------- -------
Total From Investment
Operations.......... (0.45) 1.40 0.23 1.35 2.27 0.29
-------- -------- -------- ------- ------- -------
Less Distributions to
Shareholders from:
Net Investment Income.. (0.10) (0.17) (0.02) (0.02) (0.05) (0.01)
Return of Capital...... -- -- -- -- -- --
Net Capital Gains...... -- (1.19) -- -- (1.02) --
-------- -------- -------- ------- ------- -------
Total Distributions.. (0.10) (1.36) (0.02) (0.02) (1.07) (0.01)
-------- -------- -------- ------- ------- -------
Net Asset Value, End of
Period................. $ 9.70 $ 10.25 $ 10.21 $ 12.81 $ 11.48 $ 10.28
======== ======== ======== ======= ======= =======
- --------------------------------------------------------------------------------------------------------
Total Return............ (4.47)% 15.30% 2.28% 11.77% 23.13% 2.89%
- --------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (000).......... $283,780 $314,306 $319,971 $55,914 $47,521 $34,876
Ratio of Expenses to
Average
Net Assets
After Expense
Reimbursement and
Waiver............... 0.70%(2) 0.70% 0.70%(2) 0.70%(2) 0.70% 0.70%(2)
Before Expense
Reimbursement and
Waiver............... 0.81%(2) 0.82% 0.93%(2) 0.87%(2) 0.91% 1.02%(2)
Ratio of Net Investment
Income to Average
Net Assets........... 1.98%(2) 1.77% 1.45%(2) 0.27%(2) 0.38% 0.68%(2)
Portfolio turnover
rate................... 11.09% 24.47% 2.00% 7.28% 62.49% 7.99%
</TABLE>
- --------
(1) Commencement of operations.
(2) Annualized.
See Accompanying Notes to Financial Statements.
51
<PAGE>
M.S.D.&T. Funds, Inc.
Financial Highlights
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
International Equity Fund
----------------------------------------------------------------------------------
For the Six For the Years Ended
Months Ended ----------------------------------------------------------------
November 30, 1999 May 31, 1999 May 31, 1998 May 31, 1997 May 31, 1996 May 31, 1995
----------------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 13.35 $ 13.90 $ 13.18 $ 12.47 $ 11.60 $ 11.81
------- ------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income.. 0.02 0.11 0.12 0.31 0.09 0.03
Net Realized and
Unrealized Gain (Loss)
on Investments and
Foreign Currency...... 2.74 (0.27) 1.42 0.88 1.51 0.08
------- ------- ------- ------- ------- -------
Total From Investment
Operations............ 2.76 (0.16) 1.54 1.19 1.60 0.11
------- ------- ------- ------- ------- -------
Less Distributions to
Shareholders from:
Net Investment Income.. (0.07) (0.08) (0.15) (0.24) (0.07) (0.04)
Net Capital Gains...... -- (0.31) (0.67) (0.24) (0.66) (0.28)
------- ------- ------- ------- ------- -------
Total Distributions.... (0.07) (0.39) (0.82) (0.48) (0.73) (0.32)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 16.04 $ 13.35 $ 13.90 $ 13.18 $ 12.47 $ 11.60
======= ======= ======= ======= ======= =======
- ------------------------------------------------------------------------------------------------------------
Total Return............ 20.71% (1.02)% 12.77% 9.81% 14.27% 0.82%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (000).......... $99,834 $81,301 $85,402 $83,313 $75,676 $69,172
Ratio of Expenses to
Average Net Assets
After Expense Waiver... 1.00%(1) 1.00% 1.03% 1.05% 1.05% 1.05%
Before Expense Waiver.. 1.13%(1) 1.14% 1.14% 1.16% 1.17% 1.16%
Ratio of Net Investment
Income to Average Net
Assets................ 0.29%(1) 0.82% 0.92% 0.97% 0.78% 0.06%
Portfolio turnover
rate................... 51.63% 67.33% 55.55% 74.15% 53.58% 42.15%
</TABLE>
- --------
(1) Annualized.
See Accompanying Notes to Financial Statements.
52
<PAGE>
M.S.D.&T. Funds, Inc.
Financial Highlights
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
Diversified Real Estate Fund Total Return Bond Fund
---------------------------------------------------- ------------------------------------------------
For the Six For the For the Period For the Six For the For the Period
Months Ended Year Ended August 1, 1997 (1) to Months Ended Year Ended March 1, 1998 (1)
November 30, 1999 May 31, 1999 May 31, 1998 November 30, 1999 May 31, 1999 to May 31, 1998
----------------- ------------ --------------------- ----------------- ------------ -----------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period............. $ 9.37 $10.13 $10.00 $ 9.82 $ 10.02 $ 10.00
------ ------ ------ -------- -------- --------
Income From
Investment
Operations:
Net Investment
Income............ 0.28 0.53 0.32 0.30 0.59 0.15
Net Realized and
Unrealized Gain
(Loss) on
Investments....... (1.30) (0.76) 0.12 (0.22) (0.14) 0.02
------ ------ ------ -------- -------- --------
Total From
Investment
Operations...... (1.02) (0.23) 0.44 0.08 0.45 0.17
------ ------ ------ -------- -------- --------
Less Distributions
to Shareholders
from:
Net Investment
Income............ (0.25) (0.52) (0.28) (0.30) (0.59) (0.15)
Return of Capital.. -- (0.01) (0.03)
Net Capital Gains.. -- -- -- -- (0.06) 0.00
------ ------ ------ -------- -------- --------
Total
Distributions... (0.25) (0.53) (0.31) (0.30) (0.65) (0.15)
------ ------ ------ -------- -------- --------
Net Asset Value, End
of Period.......... $ 8.10 $ 9.37 $10.13 $ 9.60 $ 9.82 $ 10.02
====== ====== ====== ======== ======== ========
- ---------------------------------------------------------------------------------------------------------------------------
Total Return........ (11.03)% (1.80)% 4.31% 0.80% 4.48% 1.69%
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental
Data
Net Assets, End of
Period (000)...... $8,568 $7,829 $6,677 $118,227 $107,149 $101,363
Ratio of Expenses
to Average Net
Assets
After Expense
Reimbursement and
Waiver........... 1.00%(2) 1.00% 1.00%(2) 0.45%(2) 0.45% 0.45%(2)
Before Expense
Reimbursement and
Waiver........... 1.47%(2) 1.47% 2.25%(2) 0.60%(2) 0.62% 0.73%(2)
Ratio of Net
Investment Income
to Average Net
Assets............ 6.41%(2) 6.03% 4.17%(2) 6.14%(2) 5.82% 5.89%(2)
Portfolio turnover
rate............... 3.94% 14.35% 0.84% 12.58% 74.94% 10.51%
</TABLE>
- --------
(1) Commencement of operations.
(2) Annualized.
See Accompanying Notes to Financial Statements.
53
<PAGE>
M.S.D.&T. Funds, Inc.
Financial Highlights
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
Limited Maturity Bond Fund
----------------------------------------------------------------------------------
For the Six For the Years Ended
Months Ended ----------------------------------------------------------------
November 30, 1999 May 31, 1999 May 31, 1998 May 31, 1997 May 31, 1996 May 31, 1995
----------------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.32 $ 10.45 $ 10.31 $ 10.19 $ 10.43 $ 10.10
-------- -------- -------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income.. 0.29 0.58 0.60 0.59 0.59 0.56
Net Realized and
Unrealized Gain (Loss)
on Investments........ (0.11) (0.10) 0.22 0.12 (0.24) 0.33
-------- -------- -------- ------- ------- -------
Total From Investment
Operations.......... 0.18 0.48 0.82 0.71 0.35 0.89
-------- -------- -------- ------- ------- -------
Less Distributions to
Shareholders from:
Net Investment Income.. (0.29) (0.58) (0.60) (0.59) (0.59) (0.56)
Net Capital Gains...... -- (0.03) (0.08) -- -- --
-------- -------- -------- ------- ------- -------
Total Distributions.. (0.29) (0.61) (0.68) (0.59) (0.59) (0.56)
-------- -------- -------- ------- ------- -------
Net Asset Value, End of
Period................. $ 10.21 $ 10.32 $ 10.45 $ 10.31 $ 10.19 $ 10.43
======== ======== ======== ======= ======= =======
- ------------------------------------------------------------------------------------------------------------
Total Return............ 1.74% 4.63% 8.15% 7.12% 3.38% 9.13%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (000).......... $163,584 $166,257 $151,922 $43,010 $44,102 $44,652
Ratio of Expenses to
Average Net Assets
After Expense Waiver... 0.45%(1) 0.45% 0.50% 0.60% 0.60% 0.60%
Before Expense
Waiver................ 0.58%(1) 0.58% 0.78% 0.75% 0.72% 0.70%
Ratio of Net Investment
Income to Average Net
Assets................ 5.59%(1) 5.54% 5.71% 5.72% 5.66% 5.56%
Portfolio turnover
rate................... 15.61% 59.73% 48.24% 20.92% 52.79% 22.01%
</TABLE>
- --------
(1) Annualized.
See Accompanying Notes to Financial Statements.
54
<PAGE>
M.S.D.&T. Funds, Inc.
Financial Highlights
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
Maryland Tax-Exempt Bond Fund
----------------------------------------------------------------------------------
For the Six For the Years Ended
Months Ended ----------------------------------------------------------------
November 30, 1999 May 31, 1999 May 31, 1998 May 31, 1997 May 31, 1996 May 31, 1995
----------------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.78 $ 10.82 $ 10.38 $10.20 $ 10.40 $ 10.25
------- ------- ------- ------ ------- -------
Income From Investment
Operations:
Net Investment Income.. 0.22 0.45 0.48 0.50 0.49 0.49
Net Realized and
Unrealized Gain (Loss)
on Investments........ (0.42) (0.04) 0.44 0.18 (0.20) 0.15
------- ------- ------- ------ ------- -------
Total From Investment
Operations............ (0.20) 0.41 0.92 0.68 0.29 0.64
------- ------- ------- ------ ------- -------
Less Distributions to
Shareholders from:
Net Investment Income.. (0.22) (0.45) (0.48) (0.50) (0.49) (0.49)
Net Capital Gains...... -- -- -- -- -- --
------- ------- ------- ------ ------- -------
Total Distributions.... (0.22) (0.45) (0.48) (0.50) (0.49) (0.49)
------- ------- ------- ------ ------- -------
Net Asset Value, End of
Period................. $ 10.36 $ 10.78 $ 10.82 $10.38 $ 10.20 $ 10.40
======= ======= ======= ====== ======= =======
- ------------------------------------------------------------------------------------------------------------
Total Return............ (1.84)% 3.81% 9.03% 6.80% 2.84% 6.48%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (000).......... $30,200 $26,565 $14,980 $8,298 $10,186 $12,360
Ratio of Expenses to
Average Net Assets
After Expense Waiver... 0.45%(1) 0.45% 0.49% 0.55% 0.62% 0.62%
Before Expense Waiver.. 0.84%(1) 0.87% 1.03% 1.13% 1.04% 0.97%
Ratio of Net Investment
Income to Average Net
Assets................ 4.24%(1) 4.12% 4.49% 4.84% 4.74% 4.83%
Portfolio turnover
rate................... 18.19% 22.78% 55.95% 28.11% 20.58% 36.80%
</TABLE>
- --------
(1) Annualized.
See Accompanying Notes to Financial Statements.
55
<PAGE>
M.S.D.&T. Funds, Inc.
Financial Highlights
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
Intermediate Tax-Exempt Bond Fund National Tax-Exempt Bond Fund
----------------------------------------------- ------------------------------------------------
For the Six For the For the Period For the Six For the For the Period
Months Ended Year Ended March 1, 1998(1) Months Ended Year Ended March 1, 1998 (1)
November 30, 1999 May 31, 1999 to May 31, 1998 November 30, 1999 May 31, 1999 to May 31, 1998
----------------- ------------ ---------------- ----------------- ------------ -----------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 10.00 $ 10.01 $ 10.00 $ 9.93 $ 10.05 $ 10.00
------- ------- ------- -------- -------- --------
Income From Investment
Operations:
Net Investment
Income............... 0.18 0.38 0.10 0.22 0.44 0.11
Net Realized and
Unrealized Gain
(Loss) on
Investments.......... (0.17) 0.07 0.01 (0.35) -- 0.05
------- ------- ------- -------- -------- --------
Total From Investment
Operations........... 0.01 0.45 0.11 (0.13) 0.44 0.16
------- ------- ------- -------- -------- --------
Less Distributions to
Shareholders from:
Net Investment
Income............... (0.18) (0.38) (0.10) (0.22) (0.44) (0.11)
Net Capital Gains..... -- (0.08) -- -- (0.12) 0.00
------- ------- ------- -------- -------- --------
Total Distributions... (0.18) (0.46) (0.10) (0.22) (0.56) (0.11)
------- ------- ------- -------- -------- --------
Net Asset Value, End of
Period................ $ 9.83 $ 10.00 $ 10.01 $ 9.58 $ 9.93 $ 10.05
======= ======= ======= ======== ======== ========
- -------------------------------------------------------------------------------------------------------------------------
Total Return........... 0.15% 4.58% 1.07% (1.29)% 4.43% 1.64%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental
Data
Net Assets, End of
Period (000)......... $88,291 $90,895 $93,992 $174,416 $178,067 $178,116
Ratio of Expenses to
Average Net Assets
After Expense
Reimbursement and
Waiver............... 0.45%(2) 0.45% 0.45%(2) 0.45%(2) 0.45% 0.45%(2)
Before Expense
Reimbursement and
Waiver............... 0.75%(2) 0.76% 0.88%(2) 0.73%(2) 0.74% 0.86%(2)
Ratio of Net
Investment Income to
Average Net Assets... 3.73%(2) 3.80% 3.84%(2) 4.57%(2) 4.36% 4.49%(2)
Portfolio turnover
rate.................. 77.67% 149.02% 10.13% 60.55% 123.30% 7.37%
</TABLE>
- --------
(1) Commencement of operations.
(2) Annualized.
See Accompanying Notes to Financial Statements.
56
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
M.S.D.&T. Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Company was incorporated in Maryland on March 7, 1989. The Articles of In-
corporation of the Company authorize the Board of Directors to issue up to ten
billion shares, having a par value of $.001 per share. The Company is a series
fund which currently issues thirteen classes of common stock representing in-
terests in thirteen investment portfolios: the Prime Money Market Fund (Class
A), the Government Money Market Fund (Class B), the Tax-Exempt Money Market
Fund (Class C), the Growth & Income Fund (Class E), the Limited Maturity Bond
Fund (Class F), the Maryland Tax-Exempt Bond Fund (Class G), the International
Equity Fund (Class H), the Diversified Real Estate Fund (Class J), the Na-
tional Tax-Exempt Bond Fund (Class K), the Total Return Bond Fund (Class L),
the Equity Growth Fund (Class M), the Equity Income Fund (Class N) and the In-
termediate Tax-Exempt Bond Fund (Class O)--(the "Funds").
On April 24, 1998, the Board of Directors of the Company approved the con-
solidation of the Tax-Exempt Money Market Fund (Trust) with the Tax-Exempt
Money Market Fund. The consolidation was effective on January 4, 1999 through
(i) the redemption of all of the outstanding shares of the Tax-Exempt Money
Market Fund (Trust) by the shareholders of record, (ii) the issuance to the
redeeming shareholders of the same number of shares of the Tax-Exempt Money
Market Fund that such shareholders redeemed from the Tax-Exempt Money Market
Fund (Trust), and (iii) the transfer of substantially all of the assets of the
Tax-Exempt Money Market Fund (Trust) to the Tax-Exempt Money Market Fund. The
aggregate net assets of the Funds immediately before the combination were
$61,657,387 for the Tax-Exempt Money Market Fund (Trust) and $93,339,760 for
the Tax-Exempt Money Market Fund.
The preparation of financial statements in conformity with generally ac-
cepted accounting principles requires management to make estimates and assump-
tions that affect the reported amounts of assets and liabilities and disclo-
sure of contingent assets and liabilities at the date of the financial state-
ments and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements.
A) Security Valuation: Investment securities held by the Prime Money Market
Fund, Government Money Market Fund and Tax-Exempt Money Market Fund (the
"Money Market Funds") are valued under the amortized cost method, which
approximates current market value. Under this method, securities are
valued at cost when purchased and, thereafter, a constant proportionate
amortization of any discount or premium is recorded until maturity of
the security. Regular review and monitoring of the valuation is per-
formed pursuant to procedures adopted by the Company's Board of Direc-
tors in an attempt to avoid dilution or
57
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Continued
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES -- Continued
other unfair results to shareholders. Each Money Market Fund seeks to
maintain a stable net asset value of $1.00 per share, but there can be
no assurance that it will be able to do so.
Investments held by the Growth & Income Fund, Equity Income Fund, Equity
Growth Fund, International Equity Fund, Diversified Real Estate Fund,
Limited Maturity Bond Fund, Total Return Bond Fund, Maryland Tax-Exempt
Bond Fund, Intermediate Tax-Exempt Bond Fund and National Tax-Exempt
Bond Fund are valued at market value or, in the absence of a market
value with respect to any portfolio securities, at fair value. A secu-
rity that is primarily traded on a domestic security exchange (including
securities traded through the National Market System) is valued at the
last sale price on that exchange or, if there were no sales during the
day, at the current quoted bid price. Portfolio securities that are pri-
marily traded on foreign exchanges are generally valued at the closing
values of such securities on their respective exchanges, provided that
if such securities are not traded on the valuation date, they will be
valued at the preceding closing values and provided further, that when
an occurrence subsequent to the time of valuation is likely to have
changed the value, then the fair value of those securities will be de-
termined through consideration of other factors by or under the direc-
tion of the Company's Board of Directors. Over-the-counter securities
and securities listed or traded on foreign exchanges with operations
similar to the U.S. over-the-counter market are valued at the mean of
the most recent available quoted bid and asked prices in the over-the-
counter market. Market or fair value may be determined on the basis of
valuations provided by one or more recognized pricing services approved
by the Board of Directors, which may rely on matrix pricing systems,
electronic data processing techniques and/or quoted bid and asked prices
provided by investment dealers. Investments in mutual funds are valued
at the closing net asset value per share on the day of valuation. Short-
term investments with maturities of 60 days or less are valued at amor-
tized cost which approximates fair value. The net asset value per share
of the Growth & Income Fund, Equity Income Fund, Equity Growth Fund, In-
ternational Equity Fund, Diversified Real Estate Fund, Limited Maturity
Bond Fund, Total Return Bond Fund, Maryland Tax-Exempt Bond Fund, Inter-
mediate Tax-Exempt Bond Fund and National Tax-Exempt Bond Fund will
fluctuate as the values of their respective investment portfolios
change.
B) Security Transactions and Investment Income: Security transactions are
accounted for on the trade date. The cost of investments sold is deter-
mined by use of the specific identification method for both financial
reporting and income tax purposes. Interest income is recorded on the
accrual basis; dividend income is recorded on the ex-dividend date. The
Company accounts separately for the assets, liabilities and operations
of each Fund. Direct expenses of a Fund are charged to that Fund while
general expenses of the Company are allocated among the Funds based on
relative net assets.
C) Dividends and Distributions to Shareholders: Dividends from net invest-
ment income are declared daily and paid monthly to shareholders of the
Money Market Funds, Limited Maturity
58
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Continued
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES -- Continued
Bond Fund, Total Return Bond Fund, Maryland Tax-Exempt Bond Fund, Inter-
mediate Tax-Exempt Bond Fund and National Tax-Exempt Bond Fund; are de-
clared and paid monthly to shareholders of the Growth & Income Fund, Eq-
uity Income Fund and Equity Growth Fund; are declared and paid quarterly
to shareholders of the Diversified Real Estate Fund; and are declared
and paid semi-annually to shareholders of the International Equity Fund.
Any net realized capital gains are distributed annually.
Income distributions and capital gains distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles; accordingly, periodic reclassifications
are made within the Funds' capital accounts to reflect income and gains
available for distribution under income tax resolutions.
D) Federal Income Taxes: Each of the Funds is a separate taxable entity and
intends to continue to qualify for the tax treatment applicable to regu-
lated investment companies under Subchapter M of the Internal Revenue
Code of 1986, as amended, and, among other things, is required to make
the requisite distributions to its shareholders which will relieve it
from Federal income or excise taxes. Therefore, no provision has been
recorded for Federal income or excise taxes.
Under current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the following fis-
cal year. The following losses will be treated as arising on the first
day of fiscal year ended May 31, 2000:
<TABLE>
<CAPTION>
Capital Losses
Deferred
--------------
<S> <C>
International Equity Fund................................... $233,286
Maryland Tax-Exempt Bond Fund............................... 473
</TABLE>
E) Repurchase Agreements: The Prime Money Market Fund, Government Money
Market Fund, Growth & Income Fund, Equity Income Fund, Equity Growth
Fund, International Equity Fund, Diversified Real Estate Fund, Limited
Maturity Bond Fund, Total Return Bond Fund, Maryland Tax-Exempt Bond
Fund, Intermediate Tax-Exempt Bond Fund and National Tax-Exempt Bond
Fund may agree to purchase portfolio securities from financial institu-
tions, such as banks and broker-dealers, subject to the seller's agree-
ment to repurchase them at an agreed upon date and price. In the case of
the Prime Money Market Fund and Government Money Market Fund, collateral
for repurchase agreements may have longer maturities than the maximum
permissible remaining maturity of portfolio investments. The seller will
be required on a daily basis to maintain the value of the securities
subject to the repurchase agreement at not less than the repurchase
price (including accrued interest), plus the transaction costs the Funds
could expect to incur if the seller defaults, marked-to-market daily.
Repurchase agreements are accounted for as collateralized financings.
The policy of the Funds is to obtain possession of collateral with a
market value equal to 102% of the repurchase agreement.
59
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Continued
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES -- Continued
F) Foreign Currency Translation: Foreign currency amounts are translated
into U.S. dollars at prevailing exchange rates as follows: assets and
liabilities at the rate of exchange prevailing at the end of the respec-
tive period, purchases and sales of securities and income and expenses
at the rate of exchange prevailing on the dates of such transactions.
The International Equity Fund does not isolate that portion of the re-
sults of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices
of securities held. Such fluctuations are included with the net realized
and unrealized gain or loss from investments.
G) Forward Foreign Currency Contracts: The International Equity Fund enters
into forward foreign currency contracts in order to hedge its exposure
to changes in foreign currency exchange rates on its foreign portfolio
holdings. All commitments are marked-to-market daily at the applicable
foreign exchange rate and any resulting unrealized gains or losses are
recorded currently. The gain or loss arising from the difference between
the original contracts and the closing of such contracts is included in
income as a component of realized gain or loss on foreign currency. Such
contracts, which protect the value of a Fund's investment securities
against a decline in the value of currency, do not eliminate fluctua-
tions in the underlying prices of the securities, but merely establish
an exchange rate at a future date. Also, although such contracts tend to
minimize the risk of loss due to a decline in the value of a hedged cur-
rency, at the same time they tend to limit any potential gain that might
be realized should the value of such foreign currency increase.
H) International investing is subject to certain factors such as currency
exchange rate volatility, possible political, social or economic insta-
bility, foreign taxation and/or differences in auditing and other finan-
cial standards.
I) Investing in the securities of companies principally engaged in the real
estate business is subject to the same risks as direct ownership of real
estate, such as supply and demand for properties, the economic health of
the country, different regions and local markets, and the strength of
specific industries renting properties.
J) The International Equity Fund is subject to foreign income taxes by cer-
tain countries in which it invests. Foreign income taxes are accrued by
the Fund and withheld from dividend and interest income. Gains realized
upon disposition of Thailand securities held by the International Equity
Fund are subject to capital gain tax in Thailand. The tax on realized
gains is paid prior to repatriation of sales proceeds. A deferred tax
liability is accrued on unrealized gains and totaled $18,813 at November
30, 1999.
2. INVESTMENT ADVISER, ADMINISTRATOR, DISTRIBUTOR AND OTHER RELATED PARTY
TRANSACTIONS
Mercantile-Safe Deposit & Trust Company ("Mercantile") provides investment
advisory and administration services to each Fund pursuant to an Investment
Advisory Agreement and an Adminis-
60
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Continued
(Unaudited)
2. INVESTMENT ADVISER, ADMINISTRATOR, DISTRIBUTOR AND OTHER RELATED PARTY
TRANSACTIONS -- Continued
tration Agreement. For its services as Adviser, Mercantile receives an advi-
sory fee computed daily and payable monthly at an annual rate of (a) .25% of
the first $1 billion of the Prime Money Market, Government Money Market and
Tax-Exempt Money Market Funds' average daily net assets during the preceding
month plus .20% of such Funds' average daily net assets in excess of $1 bil-
lion during the preceding month, (b) .60% of the first $1 billion of the
Growth & Income, Equity Income and Equity Growth Funds' average daily net as-
sets during the preceding month plus .40% of such Funds' average daily net as-
sets in excess of $1 billion during the preceding month, (c) .35% of the first
$1 billion of the Limited Maturity Bond and Total Return Bond Funds' average
daily net assets during the preceding month plus .20% of such Funds' average
daily net assets in excess of $1 billion during the preceding month, (d) .50%
of the first $1 billion of the Maryland Tax-Exempt Bond, National Tax-Exempt
Bond and Intermediate Tax-Exempt Bond Funds' average daily net assets during
the preceding month plus .25% of such Funds' average daily net assets in ex-
cess of $1 billion during the preceding month, (e) .80% of the first $1 bil-
lion of the International Equity Fund's average daily net assets during the
preceding month plus .70% of such Fund's average daily net assets in excess of
$1 billion during the preceding month (Mercantile pays a sub-advisory fee to
BlackRock, Inc. at an annual rate of .45% of the average daily net assets),
and (f) .80% of the first $1 billion of the Diversified Real Estate Fund's av-
erage daily net assets during the preceding month plus .60% of such Fund's av-
erage daily net assets in excess of $1 billion during the preceding month. For
its services as Administrator, Mercantile receives an administration fee com-
puted daily and payable monthly at an annual rate of .125% of the average
daily net assets of each Fund. Mercantile may, at its discretion, voluntarily
waive any portion of its advisory fee or its administration fee for any Fund.
Shares in each Fund are sold on a continuous basis without a sales load by
the Company's distributor, BISYS Fund Services ("the Distributor"). The Dis-
tributor receives no fee for these services. BISYS Fund Services Ohio, Inc.,
an affiliate of the Distributor, receives fees for fund accounting and trans-
fer agent services provided to the Funds.
Each director of the Company received from the Company an annual fee of
$9,500 and a fee of $2,000 for each Board meeting attended and was reimbursed
for all out-of-pocket expenses relating to attendance at meetings. The Chair-
man of the Board of Directors and President receives an additional fee of
$7,500 for his services in these capacities. No person who is a director, of-
ficer or employee of Mercantile serves as a director, officer or employee of
the Company. During the six months ended November 30, 1999, the Funds paid le-
gal fees to a law firm, a partner of which serves as Secretary of the Company.
61
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Continued
(Unaudited)
3. NET ASSETS
At November 30, 1999, net assets consisted of the following:
<TABLE>
<CAPTION>
Prime Government Tax-Exempt
Money Market Money Market Money Market
Fund Fund Fund
------------- ------------ ------------
<S> <C> <C> <C>
Capital Paid-In.................... $536,347,717 $419,250,165 $162,939,742
Accumulated Realized Gain (Loss) on
Investments....................... (105,696) (126,205) (13,803)
------------ ------------ ------------
$536,242,021 $419,123,960 $162,925,939
============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Growth & Equity Equity International Diversified
Income Income Growth Equity Real Estate
Fund Fund Fund Fund Fund
-------- ------ ------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Capital Paid-In......... $226,405,955 $125,642,833 $32,166,035 $69,484,438 $ 10,085,107
Accumulated Realized
Gain (Loss) on
Investments and Foreign
Currency............... 28,898,952 58,274,379 3,851,916 11,454,782 (267,792)
Net Unrealized
Appreciation
(Depreciation) on
Investments and Foreign
Currency............... 190,181,295 99,077,343 19,888,706 19,026,140 (1,280,346)
Undistributed Net
Investment Income
(Distribution in Excess
of Net Investment
Income)................ 171,405 785,728 6,912 (130,892) 31,444
------------ ------------ ----------- ----------- ------------
$445,657,607 $283,780,283 $55,913,569 $99,834,468 $ 8,568,413
============ ============ =========== =========== ============
<CAPTION>
Limited Total Maryland Intermediate National
Maturity Bond Return Bond Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Bond Fund Bond Fund Bond Fund
------------- ----------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C>
Capital Paid-In......... $165,871,366 $120,533,889 $31,463,902 $88,959,835 $174,091,549
Accumulated Realized
Gain (Loss) on
Investments............ 228,026 (183,989) (465,120) (378,250) (1,316,569)
Net Unrealized
Appreciation
(Depreciation) on
Investments............ (2,518,104) (2,123,395) (799,189) (298,782) 1,627,291
Undistributed Net
Investment Income
(Distribution in Excess
of Net Investment
Income)................ 2,589 -- -- 7,986 14,131
------------ ------------ ----------- ----------- ------------
$163,583,877 $118,226,505 $30,199,593 $88,290,789 $174,416,402
============ ============ =========== =========== ============
</TABLE>
62
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Continued
(Unaudited)
4. CAPITAL STOCK
Transactions in shares of the Company are summarized as follows:
<TABLE>
<CAPTION>
Prime Money Market Fund Government Money Market Fund
------------------------------ ------------------------------
For the Six For the Year For the Six For the Year
Months Ended Ended Months Ended Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Shares Sold............. 288,439,035 766,296,619 284,676,488 709,317,736
Shares Redeemed......... (283,621,369) (685,216,360) (311,979,829) (656,540,088)
Shares Reinvested....... 589,025 1,001,344 905,097 1,611,353
------------ ------------ ------------ ------------
Net Increase (Decrease)
in Shares.............. 5,406,691 82,081,603 (26,398,244) 54,389,001
Shares Outstanding:
Beginning of Period.... 530,941,026 448,859,423 445,648,410 391,259,409
------------ ------------ ------------ ------------
End of Period.......... 536,347,717 530,941,026 419,250,166 445,648,410
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Tax-Exempt Money Market Fund Growth & Income Fund
------------------------------ ------------------------------
For the Six For the Year For the Six For the Year
Months Ended Ended Months Ended Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Shares Sold............. 118,268,995 144,298,995 789,231 2,778,002
Shares Redeemed......... (98,570,763) (152,722,958) (774,176) (3,292,178)
Shares Reinvested....... 13,282 22,400 22,409 496,412
Shares Issued Due to
Exchange of Tax-Ex
(Trust) Shares for Tax-
Ex Shares.............. -- 61,658,534 -- --
----------- ------------ ---------- ----------
Net Increase (Decrease)
in Shares.............. 19,711,514 53,256,971 37,464 (17,764)
Shares Outstanding:
Beginning of Period.... 143,229,375 89,972,404 17,479,070 17,496,834
----------- ------------ ---------- ----------
End of Period.......... 162,940,889 143,229,375 17,516,534 17,479,070
=========== ============ ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Equity Income Fund Equity Growth Fund
------------------------------ ------------------------------
For the Six For the Year For the Six For the Year
Months Ended Ended Months Ended Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Shares Sold............. 309,834 818,862 398,817 934,758
Shares Redeemed......... (1,703,333) (4,951,404) (173,913) (494,334)
Shares Reinvested....... 12,007 3,451,972 438 307,838
---------- ---------- --------- ---------
Net Increase (Decrease)
in Shares.............. (1,381,492) (680,570) 225,342 748,262
Shares Outstanding:
Beginning of Period.... 30,651,908 31,332,478 4,140,373 3,392,111
---------- ---------- --------- ---------
End of Period.......... 29,270,416 30,651,908 4,365,715 4,140,373
========== ========== ========= =========
</TABLE>
63
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Continued
(Unaudited)
4. CAPITAL STOCK -- Continued
<TABLE>
<CAPTION>
International Equity Fund Diversified Real Estate Fund
------------------------------ --------------------------------------
For the Six For the Year For the Six For the Year
Months Ended Ended Months Ended Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Shares Sold............. 3,089,647 3,532,140 258,459 192,039
Shares Redeemed......... (2,959,421) (3,716,761) (39,459) (18,434)
Shares Reinvested....... 4,647 130,150 2,803 3,153
----------- ---------- ----------------- ----------------
Net Increase (Decrease)
in Shares.............. 134,873 (54,471) 221,803 176,758
Shares Outstanding:
Beginning of Period.... 6,090,442 6,144,913 835,621 658,863
----------- ---------- ----------------- ----------------
End of Period.......... 6,225,315 6,090,442 1,057,424 835,621
=========== ========== ================= ================
<CAPTION>
Limited Maturity Bond Fund Total Return Bond Fund
------------------------------ --------------------------------------
For the Six For the Year For the Six Months For the Year
Months Ended Ended Ended Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ------------------ ------------
<S> <C> <C> <C> <C>
(Unaudited) (Unaudited)
Shares Sold............. 956,654 3,237,655 1,844,296 2,162,872
Shares Redeemed......... (1,112,145) (1,839,478) (460,461) (1,459,049)
Shares Reinvested....... 70,460 169,722 21,328 83,296
----------- ---------- ----------------- ----------------
Net Increase (Decrease)
in Shares ............. (85,031) 1,567,899 1,405,163 787,119
Shares Outstanding:
Beginning of Period.... 16,111,070 14,543,171 10,906,968 10,119,849
----------- ---------- ----------------- ----------------
End of Period.......... 16,026,039 16,111,070 12,312,131 10,906,968
=========== ========== ================= ================
<CAPTION>
Maryland Tax-Exempt Bond Fund Intermediate Tax-Exempt Bond Fund
------------------------------ --------------------------------------
For the Six For the Year For the Six Months For the Year
Months Ended Ended Ended Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ------------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Shares Sold............. 673,064 1,651,881 610,311 782,513
Shares Redeemed......... (228,376) (583,325) (717,817) (1,146,751)
Shares Reinvested....... 6,015 10,397 314 62,688
----------- ---------- ----------------- ----------------
Net Increase (Decrease)
in Shares.............. 450,703 1,078,953 (107,192) (301,550)
Shares Outstanding:
Beginning of Period.... 2,463,434 1,384,481 9,089,368 9,390,918
----------- ---------- ----------------- ----------------
End of Period.......... 2,914,137 2,463,434 8,982,176 9,089,368
=========== ========== ================= ================
</TABLE>
64
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Continued
(Unaudited)
4. CAPITAL STOCK -- Continued
<TABLE>
<CAPTION>
National Tax-Exempt Bond Fund
------------------------------
For the Six For the Year
Months Ended Ended
November 30, 1999 May 31, 1999
----------------- ------------
(Unaudited)
<S> <C> <C>
Shares Sold...................................... 1,021,418 1,558,731
Shares Redeemed.................................. (758,310) (1,524,874)
Shares Reinvested................................ 681 186,631
---------- ----------
Net Increase (Decrease) in Shares................ 263,789 220,488
Shares Outstanding:
Beginning of Period............................. 17,936,893 17,716,405
---------- ----------
End of Period................................... 18,200,682 17,936,893
========== ==========
</TABLE>
5. PURCHASES & SALES OF SECURITIES
For the six months ended November 30, 1999, total aggregate purchases and pro-
ceeds from sales of investment securities (excluding short-term securities)
were as follows:
<TABLE>
<CAPTION>
U.S.
Government U.S. Government
Purchases* Sales* Purchases Sales
------------ ------------ ---------- ---------------
<S> <C> <C> <C> <C>
Growth & Income Fund.... $ 43,230,270 $ 45,705,385 $ 0 $ 0
Equity Income Fund...... 31,950,979 43,082,962 0 0
Equity Growth Fund...... 6,447,457 3,480,917 0 0
International Equity
Fund................... 43,767,160 45,706,759 0 0
Diversified Real Estate
Fund................... 2,158,505 304,350 0 0
Limited Maturity Bond
Fund................... 11,225,965 3,263,032 9,914,169 19,497,165
Total Return Bond Fund.. 10,870,661 6,583,650 14,918,377 6,320,547
Maryland Tax-Exempt Bond
Fund................... 9,577,065 4,591,770 0 0
Intermediate Tax-Exempt
Bond Fund.............. 64,196,039 67,825,168 0 0
National Tax-Exempt Bond
Fund................... 100,062,441 101,289,002 0 0
</TABLE>
- --------
* (excluding short-term and U.S. Government securities)
65
<PAGE>
M.S.D.&T. Funds, Inc.
Notes to Financial Statements -- Concluded
(Unaudited)
6. CAPITAL LOSS CARRYOVERS
At May 31, 1999, the following Funds had capital loss carryovers:.
<TABLE>
<CAPTION>
Capital Loss Capital Loss Expiration
Carryover Utilized Carryover Year
------------------ ------------ ----------
<S> <C> <C> <C>
Prime Money Market Fund.. $ 3,130 $105,696 2003 through 2006
Government Money Market
Fund.................... 126,205 2003 through 2004
Tax-Exempt Money Market
Fund.................... 306 7,494 2003 through 2007
Diversified Real Estate
Fund.................... 178,786 2006
Maryland Tax-Exempt Bond
Fund.................... 14,267 436,087 2003 through 2004
</TABLE>
The capital loss carryovers are available to offset possible future capital
gains, if any, of the respective Funds.
7. LINE OF CREDIT
M.S.D.&T. Funds, Inc. has established a line of credit with Fifth Third Bank
with respect to all Funds except International Equity Fund. The line of cred-
it, which is in an uncommitted aggregate amount of $25 million, may be ac-
cessed by the Funds for temporary or emergency purposes only. Borrowings under
the line of credit bear interest at the overnight Federal Funds rate plus .50%
per annum. At November 30, 1999, the Funds had no outstanding borrowings under
the line of credit.
66
<PAGE>
IMPORTANT TAX INFORMATION
(Unaudited)
During the calendar year ended December 31, 1999, the distributions paid by
the Funds were derived from the following:
<TABLE>
<CAPTION>
Net Investment Income
and Short-Term Exempt Interest Dividends
Capital Gains (excludable from gross Long-Term Capital Gains
(taxable as ordinary income for Federal income (taxable at a long-term
income) tax purposes) capital gain rate)
--------------------- ------------------------- -----------------------
<S> <C> <C> <C>
Prime Money Market...... 100.0% -- --
Government Money
Market................. 100.0% -- --
Tax-Exempt Money
Market................. -- 100.0% --
Growth & Income(1)...... 9.1% -- 90.9%
Equity Income(1)........ 17.8% -- 82.2%
Equity Growth(1)........ 3.5% -- 96.5%
International
Equity(2).............. 15.1% -- 84.9%
Limited Maturity Bond... 98.0% -- 2.0%
Total Return Bond....... 96.3% -- 3.7%
Maryland Tax-Exempt
Bond................... -- 100.0% --
Intermediate Tax-Exempt
Bond................... 6.5% 85.8% 7.7%
National Tax-Exempt
Bond................... 7.2% 91.2% 1.6%
</TABLE>
- --------
(1) 100% of distributions derived from net investment income and short-term
capital gains qualify for the dividends received deduction available to
corporate shareholders.
(2) The foreign taxes paid or withheld per share represent taxes incurred by
the International Equity Fund on interest and dividends received by the
Fund from foreign sources. Foreign taxes paid or withheld should be in-
cluded in taxable income with an offsetting deduction from gross income or
as a credit for taxes paid to foreign governments. See following page. You
should consult your tax advisor regarding the appropriate treatment of
foreign taxes paid.
67
<PAGE>
IMPORTANT TAX INFORMATION -- Continued
(Unaudited)
CAPITAL GAIN DISTRIBUTIONS
During the calendar year ending December 31, 1999, the M.S.D.&T. Funds dis-
tributed capital gains to shareholders of Growth & Income Fund, Equity Income
Fund, Equity Growth Fund, International Equity Fund, Total Return Bond Fund,
Limited Maturity Bond Fund, Intermediate Tax-Exempt Bond Fund and National
Tax-Exempt Bond Fund on 12/21/99. The Securities and Exchange Commission re-
quires mutual funds to disclose to shareholders the composition of the capital
gain distribution. The figures listed below may differ from those cited else-
where in the report due to differences in the calculation of income and gains
for Securities and Exchange Commission (book) purposes and Internal Revenue
Service (tax) purposes. Pursuant to this requirement, these percentages are
listed below:
<TABLE>
<CAPTION>
Short-Term Long-Term
---------- ---------
<S> <C> <C>
Growth & Income Fund................................ 0.0% 100.0%
Equity Income Fund.................................. 9.3% 90.7%
Equity Growth Fund.................................. 0.0% 100.0%
International Equity Fund........................... 11.0% 89.0%
Total Return Bond Fund.............................. 27.1% 72.9%
Limited Maturity Bond Fund.......................... 18.1% 81.9%
Intermediate Tax-Exempt Bond Fund................... 45.8% 54.2%
National Tax-Exempt Bond Fund....................... 81.7% 18.3%
</TABLE>
Short-term capital gain distributions are taxable to you as ordinary income.
Long-term capital gain distributions are taxable to you as long term capital
gains.
68
<PAGE>
IMPORTANT TAX INFORMATION -- Continued
(Unaudited)
Income by Country for the M.S.D.&T. International Equity Fund
Calendar Year Ended December 31, 1999
<TABLE>
<CAPTION>
Percentage of Percentage of
Gross Income: Taxes Paid:
------------- -------------
<S> <C> <C>
Australia........................................... 3.27% 0.24%
Brazil.............................................. 0.12 0.00
China............................................... 0.00 0.00
Denmark............................................. 0.81 0.94
Finland............................................. 0.27 0.37
France.............................................. 12.83 21.61
Germany............................................. 8.72 6.24
Greece.............................................. 0.10 0.22
Hong Kong........................................... 3.68 0.00
Hungary............................................. 0.20 0.22
Indonesia........................................... 0.17 0.21
Italy............................................... 3.36 3.87
Japan............................................... 8.39 9.83
Malaysia............................................ 0.25 0.31
Mexico.............................................. 0.42 0.13
Netherlands......................................... 6.29 3.81
Philippines......................................... 0.05 0.22
Poland.............................................. 0.80 0.72
Singapore........................................... 2.32 4.01
South Africa........................................ 1.10 0.04
Spain............................................... 3.16 1.81
Switzerland......................................... 3.00 3.70
Thailand............................................ 0.00 21.12
United Kingdom...................................... 32.67 20.38
United States....................................... 8.02 0.00
------ ------
Total............................................... 100.00 100.00
</TABLE>
Foreign taxes withheld as of December 31, 1999 were $216,021, or 52.95% of
distributed income.
69
<PAGE>
IMPORTANT TAX INFORMATION -- Continued
(Unaudited)
Income by State for the M.S.D.&T. Funds
Calendar Year Ended December 31, 1999
<TABLE>
<CAPTION>
Tax-Exempt Maryland Intermediate National
Money Tax-Exempt Tax-Exempt Tax-Exempt
Market Fund Bond Fund Bond Fund Bond Fund
----------- ---------- ------------ ----------
<S> <C> <C> <C> <C>
Percentage of Income:
Alabama........................ 0.04% 0.00% 1.12% 0.94%
Alaska......................... 0.62 0.00 0.12 0.00
Arizona........................ 0.00 0.00 1.72 1.55
California..................... 0.00 0.00 0.47 0.82
Colorado....................... 0.00 0.00 0.25 1.22
Connecticut.................... 0.00 0.00 1.44 1.31
Delaware....................... 0.00 0.00 2.97 1.22
District Of Columbia........... 0.51 0.00 3.28 0.35
Florida........................ 5.09 0.00 8.48 6.32
Georgia........................ 0.66 0.00 7.15 0.30
Illinois....................... 8.26 0.00 6.22 2.91
Indiana........................ 0.48 0.00 0.00 0.96
Kansas......................... 0.00 0.00 0.00 0.24
Kentucky....................... 2.09 0.00 3.28 0.82
Louisiana...................... 6.11 0.00 2.42 0.00
Maryland....................... 2.46 97.97 3.44 12.74
Massachusetts.................. 0.30 0.00 5.69 6.40
Michigan....................... 3.35 0.00 6.32 3.87
Minnesota...................... 4.85 0.00 1.11 1.35
Mississippi.................... 1.01 0.00 0.00 0.26
Missouri....................... 2.33 0.00 0.36 0.00
Nebraska....................... 0.42 0.00 1.26 0.71
Nevada......................... 1.07 0.00 0.00 2.78
New Hampshire.................. 1.55 0.00 0.87 0.75
New Jersey..................... 0.00 0.00 0.78 4.41
New Mexico..................... 0.00 0.00 3.49 0.12
New York....................... 0.44 0.00 2.74 8.44
North Carolina................. 10.49 0.00 2.62 0.00
Ohio........................... 7.39 0.00 1.52 3.85
Oklahoma....................... 0.00 0.00 2.19 0.96
Oregon......................... 1.79 0.00 0.34 0.84
Pennsylvania................... 2.98 0.00 5.37 9.54
Rhode Island................... 0.00 0.00 0.00 1.12
South Carolina................. 4.06 0.00 3.22 0.00
Tennessee...................... 0.00 0.00 0.43 2.20
Texas.......................... 17.30 0.00 4.82 7.64
Utah........................... 1.41 0.00 3.14 3.37
Virginia....................... 0.83 0.00 1.73 2.93
Washington..................... 3.94 0.00 2.71 1.84
Wisconsin...................... 1.82 0.00 3.85 2.58
Wyoming........................ 2.01 0.00 0.00 0.00
Other Mutual Funds............. 4.34 2.03 3.08 2.34
------ ------ ------ ------
Total........................ 100.00 100.00 100.00 100.00
</TABLE>
70
<PAGE>
IMPORTANT TAX INFORMATION -- Continued
(Unaudited)
Assets Held by State
As of Year Ended December 31, 1999
<TABLE>
<CAPTION>
Tax-Exempt Maryland Intermediate National
Money Tax-Exempt Tax-Exempt Tax-Exempt
Market Fund Bond Fund Bond Fund Bond Fund
----------- ---------- ------------ ----------
<S> <C> <C> <C> <C>
Alabama.......................... 0.00% 0.00% 0.34% 1.00%
Alaska........................... 0.64 0.00 1.07 0.00
Arizona.......................... 0.00 0.00 3.47 2.17
Colorado......................... 0.00 0.00 0.00 0.88
Connecticut...................... 0.00 0.00 3.47 3.57
Delaware......................... 0.00 0.00 2.35 2.68
District Of Columbia............. 0.00 0.00 3.53 0.00
Florida.......................... 6.92 0.00 0.00 5.97
Georgia.......................... 1.20 0.00 8.51 1.15
Illinois......................... 6.57 0.00 8.02 7.66
Indiana.......................... 0.00 0.00 0.00 2.42
Kansas........................... 0.00 0.00 0.00 1.23
Kentucky......................... 2.56 0.00 2.31 0.00
Louisiana........................ 7.69 0.00 2.33 0.00
Maryland......................... 5.90 94.51 5.79 16.17
Massachusetts.................... 0.00 0.00 5.51 7.38
Michigan......................... 2.96 0.00 0.00 2.43
Minnesota........................ 5.77 0.00 3.44 2.58
Mississippi...................... 0.70 0.00 0.00 0.00
Missouri......................... 2.17 0.00 0.00 0.00
Nebraska......................... 0.00 0.00 2.61 1.12
Nevada........................... 1.65 0.00 0.00 0.00
New Hampshire.................... 3.39 0.00 0.00 0.00
New Jersey....................... 0.00 0.00 2.29 3.48
New Mexico....................... 0.00 0.00 3.38 0.00
New York......................... 3.20 0.00 3.20 5.35
North Carolina................... 8.64 0.00 1.15 0.00
Ohio............................. 8.04 0.00 1.15 2.86
Oklahoma......................... 0.00 0.00 2.88 0.46
Oregon........................... 2.32 0.00 1.51 0.00
Pennsylvania..................... 4.62 0.00 5.22 7.85
Rhode Island..................... 0.00 0.00 0.00 0.92
South Carolina................... 3.94 0.00 2.88 0.00
Texas............................ 12.71 0.00 7.37 4.50
Utah............................. 1.31 0.00 2.31 2.53
Virginia......................... 0.98 0.00 2.37 2.59
Washington....................... 0.00 0.00 2.81 3.47
Wisconsin........................ 0.00 0.00 1.31 1.66
Wyoming.......................... 2.05 0.00 0.00 0.00
Other Assets..................... 0.66 1.55 1.54 1.47
Other Mutual Funds............... 3.41 3.94 5.88 4.45
------ ------ ------ ------
Total.......................... 100.00 100.00 100.00 100.00
</TABLE>
71
<PAGE>
IMPORTANT TAX INFORMATION -- Concluded
(Unaudited)
M.S.D.&T. Funds that Hold U.S. Government Obligations
<TABLE>
<CAPTION>
Government Diversified Limited
Money Real Estate Maturity Total Return
Market Fund Fund Bond Fund Bond Fund
----------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Percentage of Income for the
Calendar Year Ended December
31, 1999:
Treasury Obligations......... 0.00% 0.55% 32.15% 10.50%
Federal Agency Obligations... 33.42 0.00 0.78 2.15
Other Agency Obligations..... 23.96 0.00 10.81 32.60
Federal Home Loan Mortgage
Obligations................. 22.80 0.00 5.62 13.51
Other Obligations............ 19.82 99.45 50.64 41.24
----- ------ ----- -----
Total...................... 100 100 100 100
Percentage of Assets held on
December 31, 1999:
Treasury Obligations......... 0.00% 0.00% 26.89% 10.82%
Federal Agency Obligations... 37.87 0.00 1.22 2.10
Other Agency Obligations..... 20.30 0.00 10.66 28.52
Federal Home Loan Mortgage
Obligations................. 23.28 0.00 7.78 13.17
Other Obligations............ 18.55 100.00 53.45 45.39
----- ------ ----- -----
Total...................... 100 100 100 100
</TABLE>
72
<PAGE>
Investment Adviser and Administrator:
[Logo]
Custodian (except for the International Equity Fund)
Distributor and Transfer Agent:
Custodian for the International Equity Fund
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> M.S.D. & T. PRIME MONEY MARKET FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 537,355
<INVESTMENTS-AT-VALUE> 537,355
<RECEIVABLES> 1,343
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 538,698
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,456
<TOTAL-LIABILITIES> 2,456
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 536,348
<SHARES-COMMON-STOCK> 536,348
<SHARES-COMMON-PRIOR> 530,941
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (106)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 536,242
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 13,230
<OTHER-INCOME> 0
<EXPENSES-NET> 943
<NET-INVESTMENT-INCOME> 12,287
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 12,287
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 12,287
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 288,439
<NUMBER-OF-SHARES-REDEEMED> 283,621
<SHARES-REINVESTED> 589
<NET-CHANGE-IN-ASSETS> 5,407
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (106)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 629
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,116
<AVERAGE-NET-ASSETS> 503,404
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .38
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> M.S.D.& T. GOVERNMENT MONEY MARKET FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 439,637
<INVESTMENTS-AT-VALUE> 439,637
<RECEIVABLES> 1,425
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 441,063
<PAYABLE-FOR-SECURITIES> 20,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,939
<TOTAL-LIABILITIES> 21,939
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 419,250
<SHARES-COMMON-STOCK> 419,250
<SHARES-COMMON-PRIOR> 445,648
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (126)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 419,124
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 11,053
<OTHER-INCOME> 0
<EXPENSES-NET> 799
<NET-INVESTMENT-INCOME> 10,254
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 10,254
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 10,254
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 284,676
<NUMBER-OF-SHARES-REDEEMED> 311,980
<SHARES-REINVESTED> 905
<NET-CHANGE-IN-ASSETS> (26,398)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (126)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 943
<AVERAGE-NET-ASSETS> 426,027
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .38
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> M.S.D.& T. TAX-EXEMPT MONEY MARKET FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 162,577
<INVESTMENTS-AT-VALUE> 162,577
<RECEIVABLES> 851
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 163,428
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 502
<TOTAL-LIABILITIES> 502
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 162,940
<SHARES-COMMON-STOCK> 162,941
<SHARES-COMMON-PRIOR> 143,229
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (13)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 162,926
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,614
<OTHER-INCOME> 0
<EXPENSES-NET> 300
<NET-INVESTMENT-INCOME> 2,314
<REALIZED-GAINS-CURRENT> (6)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2,308
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,314
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 118,269
<NUMBER-OF-SHARES-REDEEMED> 98,571
<SHARES-REINVESTED> 13
<NET-CHANGE-IN-ASSETS> 19,705
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (7)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 200
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 374
<AVERAGE-NET-ASSETS> 159,704
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.01)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .38
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> M.S.D.& T. GROWTH & INCOME FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 255,257
<INVESTMENTS-AT-VALUE> 445,439
<RECEIVABLES> 527
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 445,966
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 308
<TOTAL-LIABILITIES> 308
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 226,406
<SHARES-COMMON-STOCK> 17,517
<SHARES-COMMON-PRIOR> 17,479
<ACCUMULATED-NII-CURRENT> 171
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 28,899
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 190,181
<NET-ASSETS> 445,658
<DIVIDEND-INCOME> 2,494
<INTEREST-INCOME> 199
<OTHER-INCOME> 0
<EXPENSES-NET> 1,521
<NET-INVESTMENT-INCOME> 1,172
<REALIZED-GAINS-CURRENT> 7,590
<APPREC-INCREASE-CURRENT> 10,665
<NET-CHANGE-FROM-OPS> 19,427
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,762
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 789
<NUMBER-OF-SHARES-REDEEMED> 774
<SHARES-REINVESTED> 22
<NET-CHANGE-IN-ASSETS> 18,620
<ACCUMULATED-NII-PRIOR> 762
<ACCUMULATED-GAINS-PRIOR> 21,309
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,305
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,741
<AVERAGE-NET-ASSETS> 433,327
<PER-SHARE-NAV-BEGIN> 24.43
<PER-SHARE-NII> .07
<PER-SHARE-GAIN-APPREC> 1.04
<PER-SHARE-DIVIDEND> (.10)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.44
<EXPENSE-RATIO> .70
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> M.S.D.& T. LIMITED MATURITY BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 165,233
<INVESTMENTS-AT-VALUE> 162,715
<RECEIVABLES> 1,697
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 164,413
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 829
<TOTAL-LIABILITIES> 829
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 165,871
<SHARES-COMMON-STOCK> 16,026
<SHARES-COMMON-PRIOR> 16,111
<ACCUMULATED-NII-CURRENT> 3
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 228
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,518)
<NET-ASSETS> 163,584
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,953
<OTHER-INCOME> 0
<EXPENSES-NET> 369
<NET-INVESTMENT-INCOME> 4,584
<REALIZED-GAINS-CURRENT> (7)
<APPREC-INCREASE-CURRENT> (1,785)
<NET-CHANGE-FROM-OPS> 2,792
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,584
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 957
<NUMBER-OF-SHARES-REDEEMED> 1,112
<SHARES-REINVESTED> 70
<NET-CHANGE-IN-ASSETS> (2,673)
<ACCUMULATED-NII-PRIOR> 11
<ACCUMULATED-GAINS-PRIOR> 235
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 287
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 472
<AVERAGE-NET-ASSETS> 164,121
<PER-SHARE-NAV-BEGIN> 10.32
<PER-SHARE-NII> .29
<PER-SHARE-GAIN-APPREC> (.11)
<PER-SHARE-DIVIDEND> (.29)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.21
<EXPENSE-RATIO> .45
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> M.S.D. & T. MARYLAND TAX-EXEMPT BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 30,628
<INVESTMENTS-AT-VALUE> 29,829
<RECEIVABLES> 490
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 30,319
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 119
<TOTAL-LIABILITIES> 119
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 31,464
<SHARES-COMMON-STOCK> 2,914
<SHARES-COMMON-PRIOR> 2,463
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (465)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (799)
<NET-ASSETS> 30,200
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 651
<OTHER-INCOME> 0
<EXPENSES-NET> 62
<NET-INVESTMENT-INCOME> 589
<REALIZED-GAINS-CURRENT> (29)
<APPREC-INCREASE-CURRENT> (1,037)
<NET-CHANGE-FROM-OPS> (477)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 589
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 673
<NUMBER-OF-SHARES-REDEEMED> 228
<SHARES-REINVESTED> 6
<NET-CHANGE-IN-ASSETS> 3,634
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (436)
<OVERDISTRIB-NII-PRIOR> 238
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 69
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 116
<AVERAGE-NET-ASSETS> 27,815
<PER-SHARE-NAV-BEGIN> 10.78
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> (.42)
<PER-SHARE-DIVIDEND> (.22)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.36
<EXPENSE-RATIO> .45
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> M.S.D. & T. INTERNATIONAL EQUITY FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 80,589
<INVESTMENTS-AT-VALUE> 99,619
<RECEIVABLES> 775
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 100,395
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 561
<TOTAL-LIABILITIES> 561
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 69,484
<SHARES-COMMON-STOCK> 6,225
<SHARES-COMMON-PRIOR> 6,090
<ACCUMULATED-NII-CURRENT> (131)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11,455
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,026
<NET-ASSETS> 99,834
<DIVIDEND-INCOME> 497
<INTEREST-INCOME> 76
<OTHER-INCOME> 0
<EXPENSES-NET> 445
<NET-INVESTMENT-INCOME> 128
<REALIZED-GAINS-CURRENT> 7,959
<APPREC-INCREASE-CURRENT> 9,112
<NET-CHANGE-FROM-OPS> 17,199
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 408
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,090
<NUMBER-OF-SHARES-REDEEMED> 2,959
<SHARES-REINVESTED> 5
<NET-CHANGE-IN-ASSETS> 18,534
<ACCUMULATED-NII-PRIOR> 149
<ACCUMULATED-GAINS-PRIOR> 3,496
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 356
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 504
<AVERAGE-NET-ASSETS> 88,960
<PER-SHARE-NAV-BEGIN> 13.35
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 2.74
<PER-SHARE-DIVIDEND> (.07)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.04
<EXPENSE-RATIO> 1.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 9
<NAME> M.S.D.& T. DIVERSIFIED REAL ESTATE FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 9,839
<INVESTMENTS-AT-VALUE> 8,559
<RECEIVABLES> 20
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,579
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11
<TOTAL-LIABILITIES> 11
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,085
<SHARES-COMMON-STOCK> 1,057
<SHARES-COMMON-PRIOR> 836
<ACCUMULATED-NII-CURRENT> 31
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (268)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,280)
<NET-ASSETS> 8,568
<DIVIDEND-INCOME> 287
<INTEREST-INCOME> 13
<OTHER-INCOME> 0
<EXPENSES-NET> 41
<NET-INVESTMENT-INCOME> 259
<REALIZED-GAINS-CURRENT> (102)
<APPREC-INCREASE-CURRENT> (1,095)
<NET-CHANGE-FROM-OPS> (938)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 230
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 258
<NUMBER-OF-SHARES-REDEEMED> 39
<SHARES-REINVESTED> 3
<NET-CHANGE-IN-ASSETS> 739
<ACCUMULATED-NII-PRIOR> 62
<ACCUMULATED-GAINS-PRIOR> (166)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 32
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 59
<AVERAGE-NET-ASSETS> 8,141
<PER-SHARE-NAV-BEGIN> 9.37
<PER-SHARE-NII> .28
<PER-SHARE-GAIN-APPREC> (1.30)
<PER-SHARE-DIVIDEND> (.25)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.10
<EXPENSE-RATIO> 1.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 10
<NAME> M.S.D.& T. NATIONAL TAX-EXEMPT BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 170,696
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> M.S.D.& T. EQUITY GROWTH FUND
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<S> <C>
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> M.S.D.& T. TOTAL RETURN BOND FUND
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<S> <C>
<PERIOD-TYPE> 6-MOS
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<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 14
<NAME> M.S.D. & T. INTERMEDIATE TAX-EXEMPT BOND FUND
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<S> <C>
<PERIOD-TYPE> 6-MOS
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> M.S.D. & T. EQUITY INCOME FUND
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<S> <C>
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</TABLE>
