<PAGE>
QUEST CASH RESERVES
July 17, 1995
DEAR SHAREHOLDER:
Quest Cash Reserves continued to meet its objective of providing safety of
principal, liquidity and maximum current income in the semi-annual period ended
May 31, 1995. Detailed information on the performance and holdings of each of
the Fund's five portfolios is presented in the Investment Review and financial
statements that follow.
Our philosophy has always been to manage the Quest Cash Reserves portfolios
conservatively, recognizing that shareholders of money market funds view
liquidity and safety of principal as their most important objectives. That
philosophy remains unchanged. Rather than subjecting the portfolios to
additional risk to achieve a higher return, we maintain a rigorous approach to
analyzing and investing in quality credits. In the taxable sector, we invest in
securities of leading financial institutions and industrial companies in the
United States and abroad. In the tax-free sector, we choose to invest in those
municipalities that have stable economic trends.
Since the end of Quest Cash Reserves' November fiscal year, rates on short-term
securities have continued to rise. For example, the seven-day compounded yield
of the Primary Portfolio rose to 5.38% on May 31, 1995 from six months earlier
when it was 4.47%. Similarly, increases in yield were exhibited by all of the
other Portfolios. Also, the total assets of Quest Cash Reserves continued to
grow, increasing to $1.94 billion at the end of May, up from $1.89 billion six
months earlier.
It was recently announced that Quest for Value Advisors and Oppenheimer
Management Corporation are discussing a transaction that would involve several
of the Quest for Value Funds. That transaction would not involve the Quest Cash
Reserves Portfolios and the advisor to the Fund will remain unchanged.
Oppenheimer Management Corporation is not affiliated with Oppenheimer Capital,
the parent of the adviser to Quest Cash Reserves.
We will remain dedicated to a conservative investment approach aimed at
providing liquidity, safety of principal and competitive returns. We thank you
for your trust and look forward to the opportunity to continue to serve your
money market fund needs.
Sincerely,
[SIG]
Joseph M. La Motta
QUEST FOR VALUE FUNDS President
One World Financial
Center
New York, NY 10281
EQUITY FUNDS
QUEST FOR VALUE FUND
GLOBAL EQUITY FUND
OPPORTUNITY FUND
SMALL CAPITALIZATION FUND
GROWTH AND INCOME FUND
FIXED INCOME FUNDS
TAXABLE
U.S. GOVERNMENT
INCOME FUND
INVESTMENT QUALITY
INCOME FUND
GLOBAL INCOME FUND
TAX-EXEMPT
NATIONAL TAX-EXEMPT FUND
CALIFORNIA TAX-EXEMPT FUND
NEW YORK TAX-EXEMPT FUND
MONEY MARKET FUNDS
QUEST CASH RESERVES:
TAXABLE
PRIMARY PORTFOLIO
GOVERNMENT PORTFOLIO
TAX-EXEMPT
GENERAL MUNICIPAL PORTFOLIO
CALIFORNIA MUNICIPAL PORTFOLIO
NEW YORK MUNICIPAL PORTFOLIO
FOR MORE INFORMATION
OR ASSISTANCE
WITH YOUR ACCOUNT
PLEASE CALL:
1-800-232-3863
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT REVIEW
Primary Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income from investments
in a diversified portfolio of high-quality money market securities. The Primary
Portfolio invests in a range of high-quality securities: marketable obligations
of, or guaranteed by, the United States Government, its agencies or
instrumentalities; U.S. dollar-denominated certificates of deposit and bankers'
acceptances; interest-bearing time deposits; domestic or foreign commercial
paper of prime quality and participation interests in loans of equivalent
quality extended by banks to such companies; and repurchase agreements that are
collateralized in full each day by U.S. Government securities.
Semi-Annual Review
During the six months ended May 31, 1995, the daily dividends of the Primary
Portfolio averaged 5.17% on an annual basis or 5.29% compounded monthly. At May
31 the Portfolio had a seven-day compounded yield of 5.38%, up from 4.47% at the
beginning of the fiscal year. The average maturity of the Portfolio during the
six months ranged from a low of 29 days to a high of 58 days and on May 31 was
53 days.
Government Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income from investments
in a diversified portfolio of high-quality money market securities. The
Government Portfolio invests in: marketable obligations of, or guaranteed by,
the United States Government, its agencies or instrumentalities; and repurchase
agreements that are collateralized in full each day by such securities.
Semi-Annual Review
The Government Portfolio's daily dividend averaged 4.98% on an annual basis or
5.09% compounded monthly in the six months ended May 31, 1995. On May 31 the
seven-day compounded yield of the Portfolio was 5.20%, up from 4.52% at November
30. The average maturity of the Portfolio during the six months ranged from 20
days to 50 days. On May 31, it was 43 days.
General Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal income taxes, from investments in a diversified portfolio of
high-grade municipal money market securities. Types of investments include
municipal notes, short-term municipal bonds, short-term discount notes and
participation interests in any of the foregoing.
Semi-Annual Review
Daily dividends of the General Municipal Portfolio averaged 3.13% on an annual
basis and 3.18% compounded monthly during the six months ended May 31. For an
investor not subject to the alternative minimum tax in the top Federal income
tax bracket of 39.6%, the effective compounded monthly yield was equivalent to a
taxable return of 5.26%. The seven-day compounded yield on May 31 was 3.30%
compared with the beginning of the fiscal year when it was 2.87%. Average
maturity for the Portfolio ranged from 29 days to 58 days and on May 31 was 40
days.
California Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal and California personal income taxes, from investments in a
diversified portfolio of high-grade municipal money market securities. The
California municipal securities in which the Portfolio invests include municipal
notes, short-term municipal bonds, short-term discount notes and participation
interests in the foregoing.
Semi-Annual Review
For the six months ended May 31, 1995, the daily dividend averaged 3.11% on an
annual basis and
2
<PAGE>
- --------------------------------------------------------------------------------
3.15% compounded monthly. For a person not subject to the alternative minimum
tax in the top Federal and California income tax brackets of 39.6% and 11%
respectively, the monthly compound return would be equivalent to a taxable
return of 5.86%. Between the end of the last fiscal year and May 31, 1995 the
seven-day compounded yield rose .56% to 3.33%. The average maturity of the
securities in the Portfolio ranged from 22 days to 64 days and was 30 days on
May 31.
New York Municipal Portfolio
Objective
Seeks safety of principal, liquidity and maximum current income that is exempt
from Federal, New York State and New York City income taxes, from investments in
a portfolio of high-grade municipal money market securities. The New York
municipal securities in which the Portfolio invests include municipal notes,
short-term municipal bonds, short-term discount notes and participation
interests in any of the foregoing.
Semi-Annual Review
In the six months ended May 31, 1995, the daily dividends of the Portfolio
averaged 3.10% on an annual basis and 3.14% compounded monthly. This was
equivalent to an effective taxable yield of 5.89% for a person not subject to
the alternative minimum tax in the top Federal, New York State and New York City
tax brackets of 39.6%, 7.875% and 3.91%, respectively. The seven-day compounded
yield rose from 2.88% to 3.30% between the 1994 fiscal year end and May 31,
1995. The average maturity of the Portfolio ranged between 19 days and 56 days.
On May 31 it was 37 days.
3
<PAGE>
MAY 31, 1995
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)
PRIMARY PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
U.S. Government Securities -- 3.7%
$ 20,000 Federal Farm Credit Bank,
6.12% - 6.20%,
3/21/96 - 5/9/96................................ $ 19,994,430
8,470 Federal Home Loan Bank,
6.07%, 6/1/95..................................... 8,470,000
31,000 Federal National Mortgage Association,
5.89% - 6.11%, 8/14/95 - 8/31/95.................. 30,541,239
--------------
Total U.S. Government Securities
(amortized cost -- $59,005,669) ...................... $ 59,005,669
--------------
Bank Notes -- 1.8%
$ 20,000 First Union Corp.,
6.09%, 7/31/95.................................... $ 20,000,000
8,700 National Bank of Detroit,
6.30%, 9/20/95.................................... 8,700,000
--------------
Total Bank Notes
(amortized cost -- $28,700,000).............................. $ 28,700,000
--------------
Certificates of Deposit -- 10.2%
$ 20,000 Bank of Nova Scotia,
6.02%, 7/10/95.................................... $ 20,000,407
15,000 Bayerische Hypotheken-und Wechsel-Bank AG,
6.10%, 6/5/95..................................... 15,000,000
20,000 Dresdner Bank AG,
6.17%, 6/8/95..................................... 20,000,000
51,000 National Westminster Bank PLC,
6.01%, 7/19/95.................................... 50,999,799
10,000 Royal Bank of Canada,
6.38%, 10/5/95.................................... 10,001,356
47,737 Societe Generale Bank,
6.04% - 6.12%,
6/21/95 - 7/10/95............................... 47,669,349
--------------
Total Certificates of Deposit
(amortized cost -- $163,670,911)............................. $ 163,670,911
--------------
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Commercial Paper -- 84.9%
$ 40,000 Abbey National
North America,
6.05% - 6.06%,
6/5/95 - 6/20/95................................ $ 39,922,672
15,000 American Home Food Products Inc.,
5.98%, 7/28/95.................................... 14,857,975
31,500 American Home Products Corp.,
5.95% - 5.96%,
7/19/95 - 10/2/95............................... 31,137,924
10,000 American Telephone & Telegraph Co.,
6.15%, 8/24/95.................................... 9,856,500
30,000 Associates Corp. of
North America,
5.94% - 5.98%,
6/16/95 - 6/22/95............................... 29,910,650
29,830 AVCO Financial Services Inc.,
5.98% - 6.00%,
7/5/95 - 7/24/95................................ 29,630,213
9,000 Banc One Corp.,
6.05%, 6/12/95.................................... 8,983,362
25,000 Bank of Nova Scotia,
5.94%, 7/20/95.................................... 24,797,875
20,000 Bayerische Vereinsbank AG,
5.94%, 7/12/95.................................... 19,864,700
20,000 Beneficial Corp.,
6.05%, 6/12/95.................................... 19,963,028
14,000 BNP Canada,
5.94%, 6/8/95..................................... 13,983,830
4,000 Caisse Nationale des Telecommunications,
5.96%, 7/7/95..................................... 3,976,160
20,000 Canadian Wheat Board,
6.21%, 8/8/95..................................... 19,765,400
45,000 CIT Group Holdings Inc.,
5.965% - 6.00%,
7/31/95 - 8/11/95............................... 44,505,892
30,600 Commerzbank U.S. Finance Inc.,
5.95% - 6.12%,
6/9/95 - 9/22/95................................ 30,280,491
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Commercial Paper (cont'd)
$ 48,830 Compagnie Bancaire USA Finance Corp.,
5.955% - 6.09%,
6/30/95 - 8/7/95................................ $ 48,466,285
24,400 Creditanstalt Finance Inc.,
5.95%, 6/5/95..................................... 24,383,869
149 Deere (John) Capital Corp.,
6.03%, 6/6/95..................................... 148,875
20,000 Deutsche Bank Financial Inc.,
5.94%, 6/19/95.................................... 19,940,600
35,000 Dover Corp.,
5.95% - 5.98%,
6/2/95 - 6/20/95................................ 34,944,386
40,000 Dresdner US Finance Inc.,
6.12% - 6.14%,
8/24/95 - 9/18/95............................... 39,342,867
12,500 Eksportfinans A/S,
5.95% - 6.12%,
8/9/95 - 8/16/95................................ 12,348,388
20,000 Ford Motor Credit Co.,
5.90%, 9/21/95 - 9/22/95.......................... 19,631,742
50,500 General Electric Capital Services Inc.,
5.94% - 6.28%,
6/21/95 - 4/19/96............................... 50,353,944
55,000 General Motors Acceptance Corp.,
5.93% - 6.12%,
6/14/95 - 9/21/95............................... 54,337,749
10,000 Generale Bank Inc.,
6.04%, 10/2/95.................................... 9,793,633
45,000 Halifax Building Society,
5.97%, 8/7/95..................................... 44,500,012
25,000 Hanson Finance (U.K.) PLC,
6.12%, 6/7/95..................................... 24,974,500
15,000 Household Finance Corp.,
6.01%, 6/19/95.................................... 14,954,925
60,000 IBM Credit Corp.,
5.94% - 5.98%,
6/26/95 - 7/11/95............................... 59,702,167
15,000 Mobil Australia Finance Co.,
5.97%, 8/18/95.................................... 14,805,975
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Commercial Paper (cont'd)
$ 23,000 Nationsbank Corp.,
5.95% - 6.13%,
7/31/95 - 9/18/95............................... $ 22,642,263
40,000 Norwest Financial Inc.,
6.00% - 6.01%,
7/31/95 - 8/1/95................................ 39,596,333
35,000 Paribas Bank of Canada,
5.97% - 5.98%,
7/17/95 - 8/8/95................................ 34,659,850
25,000 Paribas Finance Inc.,
5.95%, 7/26/95.................................... 24,772,743
24,575 Pitney Bowes Credit Corp.,
6.21%, 8/22/95.................................... 24,227,387
2,500 Potomac Electric Power Co.,
5.95%, 7/27/95.................................... 2,476,861
60,000 Skandinaviska Enskilda Banken Funding Inc.,
6.05% - 6.12%,
6/1/95 - 7/17/95................................ 59,831,789
10,000 Societe Generale North America Inc.,
6.12%, 9/25/95.................................... 9,802,800
30,000 Student Loan Corp.,
5.90% - 6.05%,
6/19/95 - 8/29/95............................... 29,678,028
61,800 Svenska Handelsbanken Inc.,
5.96% - 6.10%,
6/20/95 - 10/4/95............................... 61,039,831
35,000 Sweden (Kingdom of),
6.02% - 6.20%,
7/10/95 - 9/22/95............................... 34,521,328
39,000 Swedish Export Credit Corp.,
6.00% - 6.06%,
7/6/95 - 7/10/95................................ 38,755,625
45,000 Toronto Dominion Holdings USA Inc.,
5.97% - 5.98%,
6/15/95 - 7/24/95............................... 44,765,881
10,000 Transamerica Corp.,
5.96%, 6/13/95.................................... 9,980,133
15,000 Transamerica Finance Corp.,
6.13%, 6/6/95..................................... 14,987,230
</TABLE>
5
<PAGE>
MAY 31, 1995
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)
PRIMARY PORTFOLIO (cont'd)
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Commercial Paper (cont'd)
$ 64,575 Unilever Capital Corp.,
5.82% - 6.14%,
8/14/95 - 11/1/95............................... $ 63,313,264
35,000 U.S. Borax & Chemical Corp.,
6.12% - 6.15%,
8/23/95 - 8/30/95............................... 34,487,175
--------------
Total Commercial Paper
(amortized cost -- $1,363,605,110) ..................... $1,363,605,110
--------------
Repurchase Agreement -- .2%
$ 2,800 J.P. Morgan Securities Inc.,
dtd. 5/31/95, 6.00%, 6/1/95
(proceeds at maturity $2,800,467, collateralized
by $2,846,000 par,
$2,856,673 value, U.S. Treasury Notes, 3.875%,
8/31/95)
(amortized cost -- $2,800,000).................. $ 2,800,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
Total Investments
(amortized cost -- $1,617,781,690+)............... 100.8 % $1,617,781,690
Other Liabilities in Excess of
Other Assets...................................... (0.8 ) (12,342,011)
------- --------------
Total Net Assets (applicable to
1,605,478,756 shares outstanding at $1.00
per share)........................................ 100.0 % $1,605,439,679
------- --------------
------- --------------
</TABLE>
GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
U.S. Government Securities -- 93.9%
Federal Farm Credit Bank,
$ 5,000 5.78%, 10/6/95.................................... $ 4,898,047
15,000 VRDN*,
6.12% - 6.20%, 6/1/95........................... 14,995,410
8,720 Federal Home Loan Bank,
6.02% - 6.08%,
6/5/95 - 9/18/95................................ 8,660,109
27,750 Federal Home Loan
Mortgage Corp.,
5.86% - 6.02%,
6/6/95 - 8/9/95................................. 27,580,392
50,000 Federal National
Mortgage Association,
5.80% - 6.27%,
6/21/95 - 9/28/95............................... 49,555,499
--------------
Total U.S. Government Securities
(amortized cost -- $105,689,457)............................. $ 105,689,457
--------------
Repurchase Agreement -- 6.0%
$ 6,700 J.P. Morgan Securities Inc.,
dtd. 5/31/95, 6.00%, 6/1/95
(proceeds at maturity $6,701,117, collateralized
by $6,809,000 par,
$6,834,534 value, U.S. Treasury Notes,
3.875%, 8/31/95) (amortized cost --
$6,700,000)..................................... $ 6,700,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
Total Investments
(amortized cost -- $112,389,457+)................. 99.9 % $ 112,389,457
Other Assets in Excess of
Other Liabilities................................. 0.1 139,575
------- --------------
Total Net Assets (applicable to
112,551,268 shares outstanding at $1.00 per
share)............................................ 100.0 % $ 112,529,032
------- --------------
------- --------------
</TABLE>
6
<PAGE>
- --------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Alabama -- 1.4%
$ 1,600 Alabama Pvt. Colleges & Univs., FAR, Ser. A, VRDN*
(Insd.; FGIC),
3.70%, 6/7/95..................................... $ 1,600,000
--------------
Alaska -- 1.7%
2,000 Valdez Marine Term. Rev., Arco Transn. Proj. Ser.
B, VRDN*,
3.75%, 6/7/95..................................... 2,000,000
--------------
Arizona -- 4.0%
2,000 Apache Cnty. IDA, PCR, Tucson Elec. Pwr. Co. Proj.
Ser. B, VRDN* (LC; Mitsubishi Bank),
3.60%, 6/7/95..................................... 2,000,000
1,000 Arizona Edl. Ln. Mktg. Corp., ELR, VRDN* (LC;
Dresdner Bank AG),
3.60%, 6/7/95..................................... 1,000,000
1,200 Cochise Cnty. PCR, SWDR, Elec. Pwr. Coop. Inc.
Proj.,
4.45%, 9/1/95***.................................. 1,200,000
500 Pima Cnty. IDA, IR, Tucson Elec. Pwr. Co. Proj.,
VRDN* (LC; Bankers Trust Co.),
3.95%, 6/7/95..................................... 500,000
--------------
4,700,000
--------------
California -- 14.1%
California HELA,
1,000 Ser. A,
4.35%, 5/1/96**................................... 1,000,000
1,000 Ser. E-5,
4.10%, 6/1/95***.................................. 1,000,000
2,000 California Hsg. FAGR, Home Mtg. Proj. Ser. E,
4.60%, 2/1/96**................................... 2,000,000
500 California PCFA, PCR, San Diego Gas & Elec. Co.
Proj. Ser. A,
4.25%, 9/1/95***.................................. 500,000
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
California (cont'd)
California State RAN's
$ 1,000 Ser. A, dtd. 8/3/94,
5.00%, 6/28/95.................................... $ 1,000,580
4,000 Ser. B, VRDN*,
4.15%, 6/1/95..................................... 3,999,927
2,000 California State RAW's, Ser. C, dtd. 7/26/94,
5.75%, 4/25/96.................................... 2,019,172
1,800 Los Angeles DWP,
4.05%, 7/10/95.................................... 1,800,000
3,500 Oakland TRAN's, dtd. 7/25/94,
4.50%, 7/24/95.................................... 3,501,031
--------------
16,820,710
--------------
Colorado -- 3.1%
3,500 Arapahoe Cnty. CIT, Hwy. Rev., E-470 Proj. Ser. K,
4.45%, 8/31/95***................................. 3,500,000
200 Colorado State GFR, TRAN's, dtd. 7/6/94,
4.50%, 6/27/95.................................... 200,049
--------------
3,700,049
--------------
Connecticut -- 1.5%
800 Connecticut State ERN,
Ser. A,
5.40%, 6/15/95.................................... 800,299
1,000 Connecticut State HFA, Hsg. Mtg. Fin. Prog. Ser.
H-2,
4.40%, 9/1/95**................................... 1,000,000
--------------
1,800,299
--------------
Florida -- 1.1%
1,350 Putnam Cnty. Dev. Auth., PCR, Seminole Elec. Co.
Proj. Ser. H-1, VRDN*,
3.85%, 6/7/95..................................... 1,350,000
--------------
Idaho -- .8%
1,000 Idaho State TAN's, dtd. 7/5/94,
4.50%, 6/29/95.................................... 1,000,502
--------------
</TABLE>
7
<PAGE>
MAY 31, 1995
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)
GENERAL MUNICIPAL PORTFOLIO (cont'd)
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Illinois -- 10.8%
$ 6,300 Chicago O'Hare Int'l. Arpt., Second Lien, Ser. B,
VRDN* (LC; Societe Generale Bank),
3.60%, 6/7/95................................... $ 6,300,000
Chicago Tender Notes,
1,000 Ser. A, (LC; Morgan Guaranty Trust Co., Inc.),
4.60%, 10/31/95**................................. 1,000,000
1,000 Ser. A-2, (LC; Union Bank
of Switzerland),
4.15%, 7/19/95**.................................. 1,000,000
Illinois Health FAR,
1,800 Hosp. Sisters Svc. Proj. Ser. E, VRDN* (Insd.;
MBIA),
3.70%, 6/7/95..................................... 1,800,000
2,800 Parkside Dev. Corp. Proj., VRDN* (LC: First Nat'l.
Bank of Chicago),
3.60%, 6/7/95................................... 2,800,000
--------------
12,900,000
--------------
Indiana -- 3.5%
4,100 Indiana DFA, SWDR, Pure Air on the Lake Proj. Ser.
A,
4.20%, 6/19/95 - 6/23/95.......................... 4,100,000
--------------
Iowa -- 3.0%
1,585 Des Moines CDR, Capitol Ctr. Proj., VRDN*,
3.70%, 6/7/95..................................... 1,585,000
2,000 Iowa Sch. Corps. Wt. Ctfs., Ser. A,
4.25%, 7/17/95.................................... 2,001,577
--------------
3,586,577
--------------
Kentucky -- 7.4%
200 Boone Cnty. PCR, Cincinnati Gas & Elec. Co. Proj.
Ser. A, VRDN* (LC; Union Bank
of Switzerland),
4.10%, 6/1/95..................................... 200,000
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Kentucky (cont'd)
$ 4,000 Graves Cnty. IDA, Seaboard Farms of Ky. Inc.
Proj., VRDN* (LC; Bank of New York),
4.30%, 6/1/95..................................... $ 4,000,000
1,000 Kentucky St. PAWRFAR, PCR, Toyota Mtr. Mfg. USA
Proj., VRDN*,
4.65%, 6/1/95..................................... 1,000,000
3,600 Mayfield Cnty. IDR, Seaboard Farms of Ky. Inc.
Proj., VRDN* (LC; Bank of New York),
4.30%, 6/1/95..................................... 3,600,000
--------------
8,800,000
--------------
Louisiana -- 2.5%
2,950 Louisiana Public FAR, College & Univ. Equip. &
Cap. Proj. Ser. A, VRDN* (Insd.; FGIC),
3.70%, 6/7/95..................................... 2,950,000
--------------
Massachusetts -- 1.0%
1,165 Massachusetts Hsg. FAGR, Single Fam. Mtg. Prog.
Ser. 34,
4.15%, 6/1/96**................................... 1,165,000
--------------
Minnesota -- 2.5%
3,000 Hubbard Cnty. SWDR, Potlatch Corp. Proj., VRDN*
(LC; Credit Suisse),
4.00%, 6/7/95..................................... 3,000,000
--------------
Mississippi -- 1.2%
1,400 Jackson Cnty. ISFR, Chevron USA Inc. Proj., VRDN*
(Insd.; Chevron Corp.),
4.20%, 6/1/95..................................... 1,400,000
--------------
Missouri -- 3.0%
940 Missouri EDEIB, IDR, Ser. A, VRDN* (LC; Union Bank
of Switzerland),
3.90%, 6/7/95..................................... 940,000
</TABLE>
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Missouri (cont'd)
Missouri EIERA, PCR, Union Elec. Co. Proj.,
$ 600 Ser. A, (LC; Swiss Bank Corp.),
3.75%, 6/1/95**................................... $ 600,000
1,000 Ser. B, (LC; Union Bank
of Switzerland),
3.75%, 6/1/95**................................. 1,000,000
1,045 Missouri IDB, IDR, Wainright Inds. Inc. Proj. Ser.
F, VRDN* (LC; Union Bank
of Switzerland),
3.90%, 6/7/95................................... 1,045,000
--------------
3,585,000
--------------
Montana -- 1.4%
1,600 Forsyth PCR, Pacificorp Colstrip Proj., VRDN* (LC;
Deutsche Bank),
4.65%, 6/1/95................................... 1,600,000
--------------
Nevada -- .8%
1,000 Clark Cnty. AIR, Sub Lien, Ser. A-2, VRDN* (LC;
Toronto Dominion Bank),
3.85%, 6/7/95..................................... 1,000,000
--------------
New Hampshire -- 1.8%
1,000 New Hampshire HFA, Single Fam. Rev., Ser. F,
4.55%, 4/1/96**................................... 1,000,000
1,100 New Hampshire St. Business Fin. Auth., PCR, Pub.
Svc. Co. Proj. Ser. D, VRDN* (LC; Barclays
Bank),
4.00%, 6/7/95..................................... 1,100,000
--------------
2,100,000
--------------
New Mexico -- 1.5%
1,800 New Mexico St. HEL, Hlth. Fac. Proj., VRDN*
(Insd.; MBIA),
3.70%, 6/7/95..................................... 1,800,000
--------------
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
New York -- 3.3%
$ 1,500 New York City GO, Ser. B, VRDN* (Insd.; FGIC),
4.75%, 6/1/95..................................... $ 1,500,000
2,400 New York St. JDA, State Gtd., Ser. B, VRDN,*
4.45%, 6/1/95..................................... 2,400,000
--------------
3,900,000
--------------
Ohio -- 1.5%
1,000 Ohio State Air Quality DAR, JMG Fdg. Proj. Ser. B,
VRDN* (LC; Societe Generale Bank),
4.00%, 6/7/95..................................... 1,000,000
800 Ohio State WDA, PCFR, Edison Co. Proj. Ser. B,
4.25%, 9/1/95***.................................. 800,000
--------------
1,800,000
--------------
Pennsylvania -- 6.8%
2,000 Beaver Cnty. IDA, PCR, Duquesne Lt. & Pwr. Co.
Beaver Valley Proj. Ser. '90C, (LC; Swiss Bank
Corp.),
4.50%, 10/10/95................................... 2,000,000
Emmaus GAR, VRDN* (LC; Midland Bank),
700 Ser. C, 3.95%, 6/7/95............................. 700,000
1,700 Ser. C-8, 4.00%, 6/7/95........................... 1,700,000
2,000 Pennsylvania HEAA, SLR, Ser. A, VRDN*,
4.20%, 6/1/95..................................... 2,000,000
1,000 Philadelphia TRAN's, Ser. D, dtd. 7/7/94,
4.75%, 6/15/95.................................... 1,000,333
100 Schuylkill Cnty. IDR, RRR, Northeastern Pwr. Co.
Proj., VRDN* (LC; Sumitomo Bank),
4.10%, 6/1/95..................................... 100,000
600 York Cnty. IDA, IDR, Preston Trucking Co. Proj.,
VRDN* (LC; Mellon Bank),
4.20%, 6/1/95..................................... 600,000
--------------
8,100,333
--------------
</TABLE>
9
<PAGE>
MAY 31, 1995
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)
GENERAL MUNICIPAL PORTFOLIO (cont'd)
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
South Carolina -- 1.5%
York Cnty. PCR,
$ 1,000 North Carolina Elec. Co. Proj.,
4.55%, 8/15/95***................................. $ 1,000,000
800 Saluda River Proj.,
4.30%, 9/15/95***................................. 800,000
--------------
1,800,000
--------------
Tennessee -- 1.9%
2,300 Hamilton Cnty. IDR, Seaboard Feed of Chattanooga
Proj., VRDN* (LC; Bank of
New York),
4.30%, 6/1/95..................................... 2,300,000
--------------
Texas -- 8.0%
1,000 Brazos HEA, SLR, Ser. B-1,
3.80%, 6/1/95**................................... 1,000,000
2,300 Brazos River Auth., PCR, Texas Util. Elec. Co.
Proj. Ser. A,
4.20%, 6/22/95.................................... 2,300,000
2,700 Gulf Coast Waste Disposal Auth., Amoco Oil Co.
Proj., VRDN*,
4.20%, 6/1/95..................................... 2,700,000
1,000 Harris Cnty.,
Road Refunding Proj.,
9.00%, 10/1/95.................................... 1,017,088
200 North Central HFDCR, Prsbytrn. Med. Ctr. Proj.
Ser. D, VRDN* (Insd.; MBIA),
4.25%, 6/1/95..................................... 200,000
1,500 Panhandle Plains HEA, SLR, Ser. A,
3.80%, 6/1/95**................................... 1,500,000
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
Texas (cont'd)
$ 790 Texas HEA, Edl. Equip. & Impt. Rev., Ser. B, VRDN*
(Insd.; FGIC),
3.70%, 6/7/95..................................... $ 790,000
--------------
9,507,088
--------------
Utah -- 1.3%
1,000 Intermountain Pwr. Agy.,
PSR, Ser. E,
4.15%, 9/15/95***................................. 1,000,000
485 Utah State HFA, Single Fam. Mtg. Prog. Ser. 2,
VRDN*,
4.00%, 6/7/95..................................... 485,000
--------------
1,485,000
--------------
Virginia -- .8%
1,000 Charles Cnty. IDA, Export Fac. Rev., Chambers Dev.
Va. Inc. Proj., VRDN* (LC; Nationsbank),
4.05%, 6/7/95..................................... 1,000,000
--------------
Wisconsin -- 3.5%
4,200 Wisconsin HFFAR, Hosp. Sisters Svc. Proj. Ser. G,
VRDN* (Insd.; MBIA),
3.70%, 6/7/95..................................... 4,200,000
--------------
Wyoming -- 2.0%
2,400 Sweetwater Cnty. EIR, Pacificorp Proj. Ser. A,
4.40%, 6/16/95.................................... 2,400,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
Total Investments
(amortized cost --
$117,450,558+).................................... 98.7% $ 117,450,558
Other Assets in Excess of
Other Liabilities................................. 1.3 1,600,231
---- --------------
Total Net Assets (applicable to
119,112,109 shares outstanding at $1.00 per
share)............................................ 100.0% $ 119,050,789
---- --------------
---- --------------
</TABLE>
10
<PAGE>
- --------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
California -- 97.1%
$ 1,000 California HFF, Scripps Mem. Hosp. Proj. Ser. A,
VRDN* (Insd.; MBIA),
3.95%, 6/1/95..................................... $ 1,000,000
1,800 California HFFAR, Kaiser Permanente Proj.
Ser. A, VRDN*,
3.40%, 6/7/95..................................... 1,800,000
2,400 California HFFAR, Mem. Hlth. Svcs. Proj., VRDN*,
3.40%, 6/7/95..................................... 2,400,000
2,000 California Hsg. FAGR, Home Mtg. Proj. Ser. E,
4.60%, 2/1/96**................................... 2,000,000
California PCFA, PCR, Homestake Mining Proj.,
VRDN* (LC; Bank of Nova Scotia),
2,200 Ser. '84A, 3.85%, 6/7/95.......................... 2,200,000
200 Ser. '84B, 3.85%, 6/7/95.......................... 200,000
California PCFA, PCR,
Pacific Gas & Elec. Co. Proj.
3,000 Ser. A, (LC; Swiss Bank Corp.),
4.10%, 6/21/95.................................... 3,000,000
1,200 Ser. D, (LC; Bank of Tokyo),
4.15%, 6/16/95.................................... 1,200,000
2,000 California PCFA, PCR, San Diego Gas & Elec. Co.
Proj.,
4.25%, 8/1/95 - 9/1/95***......................... 2,000,000
700 California PCFA, PCR, Shell Oil Co. Proj. Ser. A,
VRDN*,
4.15%, 6/1/95..................................... 700,000
1,000 California PCFA, PCR, So. Cal. Edison Proj. Ser.
C,
3.90%, 6/20/95.................................... 1,000,000
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
$ 3,800 California PCFA, PCR, Wadham Energy Proj. Ser. C,
VRDN* (LC; Banque Nationale
de Paribas),
3.65%, 6/7/95..................................... $ 3,800,000
300 California PCFA, RRR, Burney Forest Prod. Proj.
Ser. A, VRDN* (LC; Nat'l. Westminster Bank),
4.25%, 6/1/95..................................... 300,000
900 California PCFA, RRR, Delano Proj., VRDN* (LC;
ABN-
Amro Bank),
4.35%, 6/1/95..................................... 900,000
100 California PCFA, RRR, HoneyLake Pwr. Co. Proj.,
VRDN* (LC; Banque Nationale de Paribas),
4.35%, 6/1/95..................................... 100,000
1,800 California PCFA, RRR, Ultrapower Malaga Corp.
Proj., VRDN* (LC; Bank of America), Ser. A,
4.40%, 6/1/95..................................... 1,800,000
California PCFA, RRR, Ultrapower Rocklin Corp.
Proj., VRDN* (LC; Bank
of America),
200 Ser. A, 4.40%, 6/1/95............................. 200,000
400 Ser. B, 4.40%, 6/1/95............................. 400,000
1,200 California PCFA, SWDR, Shell Oil Co. Proj. Ser. A,
VRDN*,
4.15%, 6/1/95..................................... 1,200,000
1,100 California State DWR, Central Valley Proj., VRDN*
(LC; Canadian Imperial Bank),
3.85%, 6/7/95..................................... 1,100,000
California State RAN's
2,500 Ser. A, dtd. 8/3/94,
5.00%, 6/28/95.................................... 2,501,130
2,000 Ser. B, dtd. 8/3/94,
4.15%, 6/28/95.................................... 2,000,000
1,000 California State RAW's,
Ser. C, dtd. 7/26/94,
5.75%, 4/25/96.................................... 1,009,586
</TABLE>
11
<PAGE>
MAY 31, 1995
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)
CALIFORNIA MUNICIPAL PORTFOLIO (cont'd)
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
$ 445 California SCDCR, Ind'l. Dev., Florestone Prod.
Proj., VRDN* (LC; Bank of Tokyo),
4.55%, 6/1/95..................................... $ 445,000
1,900 California SCDCR, Ind'l. Dev., South Bay Circuits
Proj., VRDN* (LC; Bank of Tokyo),
4.55%, 6/1/95..................................... 1,900,000
1,000 California SLR, HEA, Ser. E-5,
4.10%, 6/1/95***.................................. 1,000,000
1,900 Contra Costa Trans. Auth., STR, Ser. A, VRDN*
(Insd.; FGIC),
3.60%, 6/1/95..................................... 1,900,000
2,000 Loma Linda HR, Univ. Med. Ctr. Proj. Ser. C, VRDN*
(LC; Ind'l. Bank of Japan),
3.50%, 6/1/95..................................... 2,000,000
900 Long Beach HFR, Mem.
Hlth. Svcs. Proj., VRDN*,
3.40%, 6/1/95..................................... 900,000
3,100 Los Angeles Cnty. MTA, Ser. A, (LC; ABN-Amro Bank,
Banque Nationale de Paribas and Nat'l.
Westminster Bank),
3.95%, 6/12/95.................................... 3,100,000
1,000 Los Angeles Cnty. TRAN's, dtd. 7/7/94, 4.50%,
7/6/95.......................................... 1,000,693
1,000 Los Angeles Cnty. WWS, Ser. A, 3.85%, 7/17/95..... 1,000,000
500 Los Angeles DWP,
4.05%, 7/10/95.................................. 500,000
1,000 Moreno Valley USD, TRAN's, dtd. 7/1/94,
4.50%, 6/30/95.................................. 1,000,497
1,450 Oakland TRAN's, dtd. 7/25/94,
4.50%, 7/24/95.................................. 1,450,427
1,500 Riverside Cnty. TRAN's dtd. 7/1/94,
4.25%, 6/30/95.................................. 1,500,747
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
$ 1,500 Sacramento MUD, Ser. H, (LC; Bank of America and
Morgan Guaranty Trust Co., Inc.),
3.95%, 6/19/95.................................. $ 1,500,000
1,500 San Diego USD, TRAN's, dtd. 7/1/94,
4.25%, 6/30/95.................................. 1,500,747
--------------
</TABLE>
<TABLE>
<S> <C> <C>
Total Investments
(amortized cost --
$53,508,827+)..................................... 97.1 % $ 53,508,827
Other Assets in Excess of
Other Liabilities................................. 2.9 1,596,068
------- --------------
Total Net Assets (applicable to
55,126,447 shares outstanding
at $1.00 per share)............................... 100.0 % $ 55,104,895
------- --------------
------- --------------
</TABLE>
NEW YORK MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
New York -- 101.9%
$ 1,000 Albany Cnty. GO, Ser. A,
4.30%, 4/1/96..................................... $ 1,003,400
700 Babylon IDA, RRR, VRDN* (LC; Union Bank of
Switzerland),
4.30%, 6/1/95..................................... 700,000
1,000 Monroe Cnty. BAN's, Ser. A,
dtd. 6/8/95,
4.50%, 6/8/96..................................... 1,005,750
1,000 Nassau Cnty. BAN's, Ser. E,
dtd. 10/19/94,
4.75%, 8/15/95.................................... 1,001,292
New York City GO,
800 Ser. B, VRDN* (Insd.; FGIC),
4.75%, 6/1/95..................................... 800,000
300 Ser. B-2, VRDN* (LC; Dai-Ichi Kangyo Bank),
4.80%, 6/1/95..................................... 300,000
2,000 Ser. E-5, VRDN* (LC;
Sumitomo Bank),
4.10%, 6/1/95..................................... 2,000,000
</TABLE>
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
$ 500 New York City IDA, CFR, Childrens Oncology Soc.
Proj., VRDN* (LC; Barclays Bank),
3.40%, 6/7/95..................................... $ 500,000
New York City IDA, IDR,
1,600 Japan Airlines Co. Proj., VRDN* (LC; Morgan
Guaranty Trust Co., Inc.),
4.30%, 6/1/95..................................... 1,600,000
1,000 JFK Field Hotel Assoc. Proj., VRDN* (LC; Banque
Indosuez),
3.50%, 6/7/95..................................... 1,000,000
1,000 La Guardia Arpt. Assoc. Proj., VRDN* (LC; Banque
Indosuez),
3.50%, 6/7/95..................................... 1,000,000
700 New York City IDA, SFR, Compagnie Nationale Air
Proj., VRDN* (LC; Societe
Generale Bank),
3.50%, 6/7/95..................................... 700,000
500 New York City MWFASSR, Ser. A,
9.125%, 6/15/95................................... 515,599
New York City Trust CRR,
2,000 Carnegie Hall Proj.,VRDN* (LC; Dai-Ichi Kangyo
Bank),
3.90%, 6/7/95..................................... 2,000,000
900 Museum of Broadcasting Proj., VRDN* (LC; Sumitomo
Bank),
3.75%, 6/7/95..................................... 900,000
1,000 New York City MFA, Ser. 4,
4.05%, 6/19/95.................................... 1,000,000
New York State DAR, Metropolitan Museum of Art
Proj.,
1,500 9.20%, 7/1/95..................................... 1,536,443
2,615 Ser. B, VRDN* (Insd.; MBIA),
3.25%, 6/7/95..................................... 2,615,000
1,400 Miriam Osborn Mem. Home Proj. Ser. A, VRDN* (LC;
Banque Nationale de Paribas),
3.45%, 6/7/95..................................... 1,400,000
Sloan Kettering Mem. Hosp. Proj., (LC; Chemical
Bank),
1,000 Ser. C, 4.00%, 6/5/95............................. 1,000,000
800 Ser. D, 4.00%, 6/6/95............................. 800,000
1,400 New York State EFC, SWDR, General Elec. Co. Proj.
Ser. A,
3.90%, 6/19/95.................................... 1,400,000
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
$ 1,000 New York State ERDA, EFC, LILCO Proj. Ser. A,
VRDN* (LC; Union Bank of Switzerland),
3.50%, 6/7/95..................................... $ 1,000,000
New York State ERDA, PCR,
1,300 Cent. Hudson Gas & Elec. Co. Proj. Ser. A, VRDN*
(LC; Union Bank of Switzerland),
4.05%, 6/7/95..................................... 1,300,000
800 New York Elec. Co. Gas Proj. Ser. D, VRDN* (LC;
Union Bank of Switzerland),
4.75%, 6/1/95..................................... 800,000
Niagara Mohawk Pwr. Co.
Proj., VRDN*
200 (LC; Morgan Guaranty Trust Co., Inc.),
4.90%, 6/1/95..................................... 200,000
800 Ser. A, (LC; Toronto
Dominion Bank),
4.15%, 6/1/95..................................... 800,000
100 Ser. A, (LC; Toronto
Dominion Bank),
4.80%, 6/1/95..................................... 100,000
500 Ser. B, (LC; Toronto
Dominion Bank),
4.05%, 6/1/95..................................... 500,000
1,500 Rochester Gas & Elec. Co. Proj., VRDN* (LC; Bank
of
New York),
3.90%, 6/1/95..................................... 1,500,000
2,000 New York State GO, Ser. P,
4.05% - 4.10%,
6/8/95 - 7/24/95................................ 2,000,000
New York State JDA, State Gtd., VRDN*,
1,200 Ser. A, 4.45%, 6/1/95............................. 1,200,000
600 Ser. B, 4.45%, 6/1/95............................. 600,000
Spl. Purp.,
645 Ser. A, 4.45%, 6/1/95............................. 645,000
110 Ser. B, 4.45%, 6/1/95............................. 110,000
1,200 New York State MCF, FAGR, Mt. Sinai Hosp. Proj.,
VRDN*
8.875%, 1/15/96................................... 1,259,957
</TABLE>
13
<PAGE>
MAY 31, 1995
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (UNAUDITED)
NEW YORK MUNICIPAL PORTFOLIO (cont'd)
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
$ Niagra Cnty. IDA, IDR, Pyron Corp. Proj., VRDN*
670 (LC; Chemical Bank),
3.65%, 6/7/95..................................... $ 670,000
3,235 Port Auth. of New York &
New Jersey,
3.90% - 3.95%,
6/8/95 - 6/21/95................................ 3,235,000
2,000 Puerto Rico Gov. Dev. Bank,
4.00%, 6/12/95.................................... 2,000,000
851 Rensselaer Cnty. GO, Ser. A,
5.50%, 5/1/96..................................... 862,312
2,000 Sachem School District TAN's,
dtd. 7/5/94, 4.50%, 6/29/95..................... 2,001,034
1,000 St. Lawrence Cnty. IDA, EIR, Reynolds Metals Co.
Proj., VRDN* (LC; Royal Bank
of Canada),
3.60%, 6/7/95..................................... 1,000,000
<CAPTION>
- ------------------------------------------------------
PRINCIPAL
AMOUNT
(000) VALUE
- ------------------------------------------------------
<C> <S> <C>
$ 1,000 Suffolk Cnty. IDA, IDR, Nissequogue Cogen Ptnrs.
Proj., VRDN* (LC; Toronto
Dominion Bank),
3.70%, 6/7/95..................................... $ 1,000,000
1,000 Suffolk Cnty. TAN's, Ser. II, (LC; Nat'l.
Westminster Bank),
dtd. 9/22/94, 4.50%, 9/14/95.................... 1,001,159
1,000 Suffolk Cnty. Wtr. Auth. BAN's, VRDN*, 3.55%,
6/7/95.......................................... 1,000,000
450 Wallkill IDA, PCR, Reynolds Metals Co. Proj.,
VRDN* (LC; Nat'l. Westminster Bank),
4.10%, 6/7/95..................................... 450,000
--------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments
(amortized cost --
$50,011,946+)..................................... 101.9 % $ 50,011,946
Other Liabilities in Excess of
Other Assets ................... (1.9 ) (929,706)
------- --------------
Total Net Assets (applicable to
49,088,752 shares outstanding
at $1.00 per share)............................... 100.0 % $ 49,082,240
------- --------------
------- --------------
</TABLE>
+ Federal income tax basis of portfolio securities is the same as for
financial reporting purposes.
* Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment date)
and/or whose interest rates vary with changes in a designated base rate
(such as the prime interest rate). Maturity shown is date of next rate
change.
** These issues carry a mandatory put feature. Date shown is the exercise date
of the put.
*** These issues carry an optional put feature. Date shown is the exercise date
of the put.
14
<PAGE>
- --------------------------------------------------------------------------------
General Abbreviations:
<TABLE>
<S> <C>
AIR Airport Improvement Revenue
BAN Bond Anticipation Note
CDR Community Development Revenue
CFR Civic Facility Revenue
CIT Capital Improvement Trust
CRR Cultural Resources Revenue
DAR Dormitory Authority Revenue
DFA Development Finance Authority
DWP Department of Water & Power
DWR Department of Water Resources
EDEIB Economic Development Export & Infrastructure Board
EFC Environmental Facilities Corporation
EIERA Environmental Improvement & Energy Resource Authority
EIR Environment Improvement Revenue
ELR Educational Loan Revenue
ERDA Energy Research & Development Authority
ERN Economic Recovery Notes
FAPCR Finance Authority Pollution Control Revenue
FAR Finance Authority Revenue
FAGR Finance Agency Revenue
GAR General Authority Revenue
GFR General Fund Revenue
GO General Obligation
HEA Higher Education Authority
HEAR Higher Education Assistance Revenue
HEL Hospital Equipment Loan
HELA Higher Education Loan Authority
HFA Housing Finance Authority
HFASFR Housing Finance Authority Single Family Revenue
HFDCR Health Facilities Development Corporation Revenue
HFF Health Facilities Financing
HFFAR Health Facilities Financing Authority Revenue
HR Hospital Revenue
HFR Health Facilities Revenue
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue
IR Industrial Revenue
ISFR Industrial Sewer Finance Revenue
JDA Job Development Authority
LC Letter of Credit
MCF Medical Care Facilities
MFA Municipal Finance Authority
MTA Metropolitan Transportation Authority
MUD Municipal Utility District
MWFASSR Municipal Water Finance Authority Sewer System Revenue
PAWRFAR Pollution Abatement & Water Resource Finance Authority
Revenue
PCFA Pollution Control Financing Authority
PCFR Pollution Control Facilities Revenue
PCR Pollution Control Revenue
PSR Power Supply Revenue
RAN Revenue Anticipation Note
RAW Revenue Anticipation Warrant
RR Resource Revenue
RRR Resource Recovery Revenue
SCDCR Statewide Communities Development Corporation Revenue
SLR Student Loan Revenue
SWDR Solid Waste Disposal Revenue
TAN Tax Anticipation Note
TRAN Tax Revenue Anticipation Note
USD Unified School District
WDA Water Development Authority
WWS Waste Water System
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
MAY 31, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
<TABLE>
<CAPTION>
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
--------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value
(amortized cost
-- $1,617,781,690,
$112,389,457,
$117,450,558, $53,508,827 and
$50,011,946, respectively).... $1,617,781,690 $112,389,457 $117,450,558 $53,508,827 $50,011,946
Cash........................... 681,999 66,753 127,086 134,143 89,944
Receivable for investments
sold.......................... -- -- 2,005,085 1,000,000 --
Receivable for capital stock
sold.......................... 23,585,546 1,658,406 1,735,259 396,471 1,135,401
Interest receivable............ 1,489,416 180,117 1,278,213 702,287 443,221
Deferred organization and
prepaid expenses.............. 231,252 19,191 21,467 6,163 5,876
--------------- ------------- ------------- ------------ ------------
Total Assets................. 1,643,769,903 114,313,924 122,617,668 55,747,891 51,686,388
--------------- ------------- ------------- ------------ ------------
Liabilities
Payable for investments
purchased..................... -- -- 1,165,000 -- 2,016,794
Payable for capital stock
redeemed...................... 34,400,735 1,514,402 2,194,059 547,416 499,436
Investment advisory fee
payable....................... 36,520 3,039 3,166 891 528
Distribution assistance fee
payable....................... 22,140 1,537 1,628 743 660
Shareholder services fee
payable....................... 75,697 5,236 5,929 2,827 1,414
Administrative services fee
payable....................... 3,888 258 284 145 116
Dividends payable.............. 3,487,920 239,319 161,537 73,204 65,898
Other payables and accrued
expenses...................... 303,324 21,101 35,276 17,770 19,302
--------------- ------------- ------------- ------------ ------------
Total Liabilities............ 38,330,224 1,784,892 3,566,879 642,996 2,604,148
--------------- ------------- ------------- ------------ ------------
Net Assets
Par value ($.0001 per share, 10
billion shares authorized
for each portfolio)........... 160,548 11,255 11,911 5,513 4,909
Paid-in-surplus................ 1,605,279,038 112,517,820 119,099,533 55,725,340 49,083,843
Accumulated undistributed net
realized gain (loss) on
investments................... 93 (43) (60,655) (625,958) (6,512)
--------------- ------------- ------------- ------------ ------------
Total Net Assets............. $1,605,439,679 $112,529,032 $119,050,789 $55,104,895 $49,082,240
--------------- ------------- ------------- ------------ ------------
--------------- ------------- ------------- ------------ ------------
Fund shares outstanding........ 1,605,478,756 112,551,268 119,112,109 55,126,447 49,088,752
--------------- ------------- ------------- ------------ ------------
Net asset value, offering and
redemption price per share.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------- ------------- ------------- ------------ ------------
--------------- ------------- ------------- ------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
SIX MONTHS ENDED MAY 31, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
General California New York
Primary Government Municipal Municipal Municipal
Portfolio Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest.......................... $46,180,514 $3,391,117 $2,487,461 $1,105,267 $ 992,249
----------- ----------- ----------- ----------- ----------
Operating Expenses
Investment advisory fee (note
2a).............................. 3,127,972 280,534 302,909 143,304 129,339
Distribution assistance fee
(note 2b)........................ 2,138,407 161,149 174,700 81,314 73,449
Transfer agent and dividend
disbursement agent fees.......... 1,164,537 49,528 53,084 12,964 15,310
Registration fees................. 137,192 10,167 32,566 53 1,331
Shareholder services fee.......... 144,230 10,695 11,953 5,687 5,901
Administrative services fee....... 132,778 9,262 10,618 4,668 4,154
Custodian fees.................... 56,636 19,236 19,909 4,857 4,408
Reports and notices to
shareholders..................... 68,534 4,402 4,324 1,092 1,606
Auditing, consulting and tax
return preparation fees.......... 22,833 8,007 9,077 9,404 8,914
Directors' fees and expenses...... 9,585 9,593 9,593 8,826 8,783
Legal fees........................ 11,059 4,688 2,180 1,803 1,779
Miscellaneous..................... 50,837 2,279 4,019 5,774 7,862
----------- ----------- ----------- ----------- ----------
Total operating expenses........ 7,064,600 569,540 634,932 279,746 262,836
Less: Investment advisory fee
waived (note 2a).......... -- -- (78,982) (61,608) (65,190)
----------- ----------- ----------- ----------- ----------
Net operating expenses........ 7,064,600 569,540 555,950 218,138 197,646
----------- ----------- ----------- ----------- ----------
Net investment income......... 39,115,914 2,821,577 1,931,511 887,129 794,603
----------- ----------- ----------- ----------- ----------
Net realized gain (loss) on
security transactions
(note 2e).................... 93 (43) (2,057) (618,235) (2,380)
----------- ----------- ----------- ----------- ----------
Net increase in net assets
resulting
from operations.................. $39,116,007 $2,821,534 $1,929,454 $ 268,894 $ 792,223
----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Primary Portfolio Government Portfolio
Six months ended Year ended Six months ended Year ended
May 31, 1995 (a) November 30, 1994 May 31, 1995 (a) November 30, 1994
----------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Operations
Net investment income.............. $ 39,115,914 $ 47,757,069 $ 2,821,577 $ 3,944,731
Net realized gain (loss) on
security transactions............. 93 482 (43) 494
----------------- ----------------- ---------------- -----------------
Net increase in net assets
resulting from operations....... 39,116,007 47,757,551 2,821,534 3,945,225
----------------- ----------------- ---------------- -----------------
Dividends and Distributions to
Shareholders
Net investment income.............. (39,115,914) (47,757,069) (2,821,577) (3,944,731)
From other sources................. -- (22,925) -- (19,562)
Net realized gains................. (482) (519) (494) --
----------------- ----------------- ---------------- -----------------
Total dividends and distributions
to shareholders................. (39,116,396) (47,780,513) (2,822,071) (3,964,293)
----------------- ----------------- ---------------- -----------------
Fund Share Transactions
Net increase (decrease) in net
assets derived from fund share
transactions...................... 151,671,297 39,885,122 (688,185) (14,644,277)
----------------- ----------------- ---------------- -----------------
Increase due to voluntary capital
contribution by adviser (note
2e)............................... -- -- -- --
----------------- ----------------- ---------------- -----------------
Total increase (decrease) in net
assets.......................... 151,670,908 39,862,160 (688,722) (14,663,345)
Net Assets
Beginning of period................ 1,453,768,771 1,413,906,611 113,217,754 127,881,099
----------------- ----------------- ---------------- -----------------
End of period...................... $ 1,605,439,679 $ 1,453,768,771 $ 112,529,032 $ 113,217,754
----------------- ----------------- ---------------- -----------------
----------------- ----------------- ---------------- -----------------
Shares Issued and Redeemed (all at
$1.00 per share)
Issued............................. 4,101,886,269 7,161,861,617 289,755,710 532,176,675
Issued in reinvestment of dividends
and distributions................. 36,939,103 44,984,290 2,725,491 3,749,627
Redeemed........................... (3,987,154,075) (7,166,960,785) (293,169,386) (550,570,579)
----------------- ----------------- ---------------- -----------------
Net increase (decrease).......... 151,671,297 39,885,122 (688,185) (14,644,277)
----------------- ----------------- ---------------- -----------------
----------------- ----------------- ---------------- -----------------
</TABLE>
(a) Unaudited
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
General Municipal Portfolio California Municipal Portfolio New York Municipal Portfolio
Six months ended Year ended Six months ended Year ended Six months ended Year ended
May 31, 1995 (a) November 30, 1994 May 31, 1995 (a) November 30, 1994 May 31, 1995 (a) November 30, 1994
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
$ 1,931,511 $ 2,339,750 $ 887,129 $ 1,213,588 $ 794,603 $ 950,379
(2,057) 541 (618,235) 1,178 (2,380) 1,510
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
1,929,454 2,340,291 268,894 1,214,766 792,223 951,889
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
(1,931,511) (2,339,750) (887,129) (1,213,588) (794,603) (950,379)
-- -- -- -- -- --
-- -- -- -- -- --
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
(1,931,511) (2,339,750) (887,129) (1,213,588) (794,603) (950,379)
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
10,311,461 (931,784) (6,199,671) (1,019,116) 1,107,702 5,739,456
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
-- -- 604,407 -- -- --
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
10,309,404 (931,243) (6,213,499) (1,017,938) 1,105,322 5,740,966
108,741,385 109,672,628 61,318,394 62,336,332 47,976,918 42,235,952
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
$ 119,050,789 $ 108,741,385 $ 55,104,895 $ 61,318,394 $ 49,082,240 $ 47,976,918
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
328,466,158 492,775,657 154,995,528 248,723,997 157,306,712 258,534,314
1,830,762 2,232,370 825,596 1,143,418 744,419 888,182
(319,985,459) (495,939,811) (162,020,795) (250,886,531) (156,943,429) (253,683,040)
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
10,311,461 (931,784) (6,199,671) (1,019,116) 1,107,702 5,739,456
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
</TABLE>
19
<PAGE>
MAY 31, 1995
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) Organization and Significant Accounting Policies
Quest Cash Reserves, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as an open-end management investment company. The Fund has
five portfolios ( the "Portfolio"): the Primary Portfolio ("Primary"), the
Government Portfolio ("Government"), the General Municipal Portfolio
("General"), the California Municipal Portfolio ("California") and the New York
Municipal Portfolio ("New York"). Each Portfolio is considered to be a separate
entity for financial reporting and tax purposes. Quest for Value Advisors (the
"Adviser") and Quest for Value Distributors (the "Distributor"), both
majority-owned (99%) subsidiaries of Oppenheimer Capital, serve as each
Portfolio's adviser and distributor, respectively. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements:
(a) Valuation of Investments
Each Portfolio values its investments on the basis of amortized cost which
approximates market value.
(b) Federal Income Taxes
Each Portfolio intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and distributes all of
its taxable income to its shareholders; accordingly, no Federal income tax
provision is required.
(c) Deferred Organization Expenses
The following costs were incurred by each Portfolio, respectively, in
connection with its organization: Primary -- $124,000, Government -- $800,
General -- $9,000, California -- $19,000 and New York -- $21,000. These costs
have been deferred and are being amortized to expense on a straight line basis
over sixty months from commencement of each Portfolio's operations.
(d) Security Transactions and Other Income
Security transactions are accounted for on the trade date. Cost of
securities sold is determined on the basis of identified cost. Interest income
is accrued as earned. Premiums are amortized by each Portfolio and discounts are
accreted by Primary and Government to interest income over the lives of the
respective securities.
(e) Dividends and Distributions
Dividends from net investment income are declared daily and paid monthly by
each Portfolio. Distributions of net realized short-term capital gains are
declared and paid annually by each Portfolio.
(f) Repurchase Agreements
Each Portfolio may enter into repurchase agreements as part of its
investment program. The Portfolio's custodian takes possession of the collateral
pledged by the counterparty. The collateral is marked-to-market daily to ensure
that the value, plus accrued interest, is at least equal to the repurchase
price. In the event of default of the obligor to repurchase, the Portfolio has
the right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation. Under certain circumstances, in the event of default or
bankruptcy by the other party to the agreement, realization and/or retention of
the collateral or proceeds may be subject to legal proceedings.
(g) Allocation of Expenses
Expenses specifically identifiable to a particular Portfolio are borne by
that Portfolio. Other expenses are allocated to each Portfolio based on its net
assets in relation to the total net assets of all the applicable Portfolios or
another reasonable basis.
(2) Investment Advisory Fee, Distribution Plan and Other Transactions with
Affiliates
(a)Under the Investment Advisory Agreement, each Portfolio pays the Adviser
an investment advisory fee monthly at the annual rate of .50% of the
first $100 million of average daily net assets, .45% on the next $200 million of
average daily net assets, and .40% on average daily net assets in excess of $300
million. The
20
<PAGE>
- --------------------------------------------------------------------------------
Adviser has agreed to reimburse each Portfolio to the extent that the combined
operating expenses of the Portfolio exceed 1.00% of its average daily net assets
for any fiscal year. For the six months ended May 31, 1995, the Adviser waived
$78,982, $61,608, and $65,190 in investment advisory fees for General,
California and New York, respectively.
(b)The Fund has adopted a Distribution Assistance Plan (the "Plan") pursuant
to which each portfolio pays the Adviser a fee monthly at an annual rate
of .25% of each Portfolio's average daily net assets and the Adviser uses such
amounts in their entirety for (i) payments to broker-dealers, banks and other
financial intermediaries for their distribution assistance provided to the
Portfolio and (ii) otherwise promoting the sale of shares of the Fund. For the
six months ended May 31, 1995, the vast majority of all fees under the Plan were
paid by the Adviser to Oppenheimer & Co., Inc., an affiliated broker-dealer of
the Adviser.
(c)A portion of the shareholder services fee for each Portfolio is payable
to Oppenheimer & Co., Inc. Each Portfolio reimburses Oppenheimer & Co.,
Inc. for a portion of its costs in providing it with shareholder services; for
the six months ended May 31, 1995, such reimbursements were: Primary $140,406;
Government $10,135; General $11,226; California $5,686; and New York $3,810.
(d)Each Portfolio pays Oppenheimer & Co., Inc. and certain other
broker-dealers for administrative services performed for shareholder
accounts; for the six months ended May 31, 1995, payments to Oppenheimer & Co.,
Inc. were: Primary $119,952; Government $7,993; General $9,637; California
$4,773; and New York $3,768.
(e)On December 7, 1994 the Adviser voluntarily purchased from the California
Municipal Portfolio $1,000,000 par, Orange County Tax and Revenue
Anticipation Fixed Rate Notes, 4.50% coupon maturing July 19, 1995 and
$1,000,000 par, Orange County Tax and Revenue Anticipation Floating Rate Notes
at an amount $604,407 in excess of the securities' fair market value. The
Portfolio recorded a realized loss on the sale and an offsetting capital
contribution from the Adviser.
(3) Purchases and Sales of Securities
For the six months ended May 31, 1995, purchases and sales/maturities of
investment securities were: Primary $5,414,986,683 and $5,295,699,315,
respectively; Government $2,719,149,305 and $2,721,453,552, respectively;
General $307,719,439 and $300,590,960, respectively; California $148,095,605 and
$153,683,392, respectively; and New York $143,339,247 and $139,604,044,
respectively.
(4) Financial Instruments and Associated Risks
Each Portfolio invests in issues which mature in thirteen months or less and
are rated high quality by a nationally-recognized rating organization or, if not
rated, are judged by the Adviser to be of comparable quality. Primary, in
pursuing its policy of portfolio diversification, may have industry
concentrations in excess of 5%; at May 31, 1995, such concentrations were
Banking -- 42.4%, Finance -- 17.1%, Conglomerates -- 12.4%, Sovereign -- 6.7%
and Machinery/Engineering -- 5.1%. Government's portfolio is concentrated in
issues of, or guaranteed by, the U.S. Government and/or its agencies and is
diversified with respect to its investments in repurchase agreements. General
maintains a diversified portfolio of short-term obligations issued by states,
territories and possessions of the United States and by the District of Columbia
and by their political subdivisions and duly constituted authorities. California
and New York maintain non-diversified portfolios of short-term obligations
issued by the States of California and New York, respectively, and their
political subdivisions. Issuers' abilities to meet their obligations may be
affected by economic and political developments in a specific state, region or
industry. Certain short-term debt obligations held by the Portfolios may be
entitled to the benefit of standby letters of credit or other guarantees of
banks or other financial institutions.
21
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS DIVIDENDS AND DISTRIBUTIONS
------------------------------------------ ------------------------------
Dividends to
Net Asset Net Realized Shareholders Distributions to Distributions to
Value, Net Gain/(Loss) on Total from from Net Shareholders Shareholders from
Beginning Investment Security Investment Investment from Other Net Realized
of Period Income Transactions Operations Income Sources Gains
<S> <C> <C> <C> <C> <C> <C> <C>
Primary Portfolio
SIX MONTHS ENDED
MAY 31, 1995 (1) $1.00 $0.026 $ 0.000(2) $0.026 $(0.026) -- $(0.000)(2)
YEAR ENDED NOVEMBER
30,
1994 1.00 0.032 0.000(2) 0.032 (0.032) $(0.000)(2) (0.000)(2)
1993 1.00 0.024 0.000(2) 0.024 (0.024) (0.000)(2) (0.000)(2)
1992 1.00 0.033 0.000(2) 0.033 (0.033) -- (0.000)(2)
1991 1.00 0.057 (0.000)(2) 0.057 (0.057) -- --
DECEMBER 13, 1989
(5) TO
NOVEMBER 30, 1990 1.00 0.073(6) 0.000(2) 0.073 (0.073) -- (0.000)(2)
<CAPTION>
RATIOS TO
AVERAGE NET ASSETS
----------------------
Net Asset Net Assets, Net Net
Value, End Total End of Period Operating Investment
of Period Return* (millions) Expenses Income
<S> <C> <C> <C> <C> <C>
Primary Portfolio
SIX MONTHS ENDED
MAY 31, 1995 (1) $1.00 5.29%(3) $1,605.4 0.93%(3,4) 5.17%(3,4)
YEAR ENDED NOVEMBER
30,
1994 1.00 3.26% 1,453.8 0.91% 3.21%
1993 1.00 2.44% 1,413.9 0.90% 2.41%
1992 1.00 3.38% 1,168.3 0.88% 3.34%
1991 1.00 5.89% 1,249.0 0.86% 5.74%
DECEMBER 13, 1989
(5) TO
NOVEMBER 30, 1990 1.00 7.80%(3) 1,244.2 0.87%(3,6) 7.47%(3,6)
<FN>
(1) UNAUDITED.
(2) LESS THAN $.0005 PER SHARE.
(3) ANNUALIZED.
(4) AVERAGE NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 1995 WERE
$1,518,282,785.
(5) COMMENCEMENT OF OPERATIONS.
(6) REFLECTS A VOLUNTARY WAIVER OF $.00004 PER SHARE IN ADVISORY FEES. HAD SUCH
WAIVER NOT OCCURRED, THE NET OPERATING EXPENSE AND NET INVESTMENT INCOME
RATIOS WOULD HAVE BEEN 0.88% AND 7.46%, RESPECTIVELY.
</TABLE>
Government Portfolio
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED
MAY 31, 1995 (1) $1.00 $0.025 $(0.000)(3) $ 0.025 $ (0.025) -- $(0.000)(3)
YEAR ENDED NOVEMBER
30,
1994 1.00 0.031(2) 0.000(3) 0.031 (0.031) $(0.000)(3) --
1993 1.00 0.022 -- 0.022 (0.022) (0.000)(3) --
1992 1.00 0.032(2) 0.000(3) 0.032 (0.032) -- (0.000)(3)
1991 1.00 0.055(2) -- 0.055 (0.055) -- --
FEBRUARY 14, 1990
(6) TO
NOVEMBER 30, 1990 1.00 0.059(2) 0.000(3) 0.059 (0.059) -- (0.000)(3)
<CAPTION>
SIX MONTHS ENDED
MAY 31, 1995 (1) $1.00 5.09%(4) $ 112.5 1.00%(4,5) 4.97%(4,5)
YEAR ENDED NOVEMBER
30,
1994 1.00 3.12% 113.2 0.95%(2) 3.08%(2)
1993 1.00 2.26% 127.9 1.00% 2.24%
1992 1.00 3.24% 131.7 0.93%(2) 3.23%(2)
1991 1.00 5.69% 142.2 0.84%(2) 5.62%(2)
FEBRUARY 14, 1990
(6) TO
NOVEMBER 30, 1990 1.00 7.67%(4) 150.1 0.67%(2,4) 7.34%(2,4)
<FN>
(1) UNAUDITED.
(2) REFLECTS A VOLUNTARY WAIVER OF $.0002, $.0002 AND $.001 PER SHARE,
RESPECTIVELY, IN ADVISORY FEES AND $.004 PER SHARE IN ADVISORY FEES AND
REIMBURSEMENT OF OTHER OPERATING EXPENSES, RESPECTIVELY, IN EFFECT DURING
EACH PERIOD. HAD SUCH WAIVERS AND REIMBURSEMENTS NOT OCCURRED, THE RATIO OF
NET OPERATING EXPENSES WOULD HAVE BEEN 0.97%, 0.94%, 0.92% AND 1.19%,
RESPECTIVELY AND THE RATIO OF NET INVESTMENT INCOME WOULD HAVE BEEN 3.06%,
3.22%, 5.54% AND 6.82%, RESPECTIVELY.
(3) LESS THAN $.0005 PER SHARE.
(4) ANNUALIZED.
(5) AVERAGE NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 1995 WERE $113,919,592.
(6) COMMENCEMENT OF OPERATIONS.
</TABLE>
22
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
---------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Dividends
Asset Net to
Value, Realized Total Shareholders Capital
Beginning Net Gain/(Loss) from from Net Contribution
of Investment on Security Investment Investment by
Period Income Transactions Operations Income Adviser
General Municipal Portfolio
SIX MONTHS ENDED MAY 31,
1995 (1) $1.00 $0.016(2) $(0.000)(3) $0.016 $(0.016) --
YEAR ENDED NOVEMBER 30,
1994 1.00 0.020(2) 0.000(3) 0.020 (0.020) --
1993 1.00 0.017(2) (0.000)(3) 0.017 (0.017) --
1992 1.00 0.026(2) (0.000)(3) 0.026 (0.026) --
1991 1.00 0.042(2) 0.000(3) 0.042 (0.042) --
FEBRUARY 14, 1990 (6) TO
NOVEMBER 30, 1990 1.00 0.042(2) (0.000)(3) 0.042 (0.042) --
<CAPTION>
RATIOS TO
AVERAGE NET
ASSETS
-----------------------------
<S> <C> <C> <C> <C> <C>
Net
Net Asset Assets,
Value, End of Net Net
End of Total Period Operating Investment
Period Return* (millions) Expenses Income
General Municipal Portfolio
SIX MONTHS ENDED MAY 31,
1995 (1) $1.00 3.18%(4) $119.1 0.90%(2,4,5) 3.13%(2,4,5)
YEAR ENDED NOVEMBER 30,
1994 1.00 2.04% 108.7 0.90%(2) 2.01%(2)
1993 1.00 1.74% 109.7 0.98%(2) 1.73%(2)
1992 1.00 2.66% 112.9 0.90%(2) 2.62%(2)
1991 1.00 4.24% 100.1 0.88%(2) 4.20%(2)
FEBRUARY 14, 1990 (6) TO
NOVEMBER 30, 1990 1.00 5.45%(4) 107.9 0.71%(2,4) 5.32%(2,4)
<FN>
(1) UNAUDITED.
(2) REFLECTS A VOLUNTARY WAIVER OF $.001, $.001, $.0003, $.001, $.001 AND $.002
PER SHARE, RESPECTIVELY, IN ADVISORY FEES IN EFFECT DURING EACH PERIOD. HAD
SUCH WAIVERS NOT OCCURRED, THE RATIO OF NET OPERATING EXPENSES WOULD BEEN
1.03%, 1.01%, 1.01%, 1.00%, 0.98% AND 1.00%, RESPECTIVELY AND THE RATIO OF
NET INVESTMENT INCOME WOULD HAVE BEEN 3.00%, 1.90%, 1.70%, 2.52%, 4.10% AND
5.03%, RESPECTIVELY.
(3) LESS THAN $.0005 PER SHARE.
(4) ANNUALIZED.
(5) AVERAGE NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 1995 WERE $123,885,178.
(6) COMMENCEMENT OF OPERATIONS.
</TABLE>
California Municipal Portfolio
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED
MAY 31, 1995 (1) $1.00 $0.015 (2) $(0.011) $0.004 $(0.015) $0.011
YEAR ENDED NOVEMBER
30,
1994 1.00 0.020 (2) 0.000 (3) 0.020 (0.020) --
1993 1.00 0.017 (2) (0.000)(3) 0.017 (0.017) --
1992 1.00 0.025 (2) (0.000)(3) 0.025 (0.025) --
MARCH 20, 1991 (6)
TO
NOVEMBER 30, 1991 1.00 0.026 (2) (0.000)(3) 0.026 (0.026) --
<CAPTION>
SIX MONTHS ENDED
MAY 31, 1995 (1) $1.00 3.15%(4) $ 55.1 0.76%(2,4,5) 3.10%(2,4,5)
YEAR ENDED NOVEMBER
30,
1994 1.00 1.99% 61.3 0.85%(2) 1.99%(2)
1993 1.00 1.76% 62.3 0.85%(2) 1.75%(2)
1992 1.00 2.57% 61.2 0.60%(2) 2.51%(2)
MARCH 20, 1991 (6)
TO
NOVEMBER 30, 1991 1.00 4.24%(4) 45.4 0.54%(2,4) 3.75%(2,4)
<FN>
(1) UNAUDITED.
(2) REFLECTS A VOLUNTARY WAIVER OF $.001, $.001, $.001 AND $.004 PER SHARE IN
ADVISORY FEES AND $.004 PER SHARE IN ADVISORY FEES AND REIMBURSEMENT OF
OTHER OPERATING EXPENSES, RESPECTIVELY, IN EFFECT DURING EACH PERIOD. HAD
SUCH WAIVERS AND REIMBURSEMENTS NOT OCCURRED, THE RATIO OF NET OPERATING
EXPENSES WOULD HAVE BEEN 0.98%, 0.97%, 0.98%, 1.02% AND 1.08%, RESPECTIVELY
AND THE RATIO OF NET INVESTMENT INCOME WOULD HAVE BEEN 2.88%, 1.87%, 1.62%,
2.09% AND 3.21%, RESPECTIVELY.
(3) LESS THAN $.0005 PER SHARE.
(4) ANNUALIZED.
(5) AVERAGE NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 1995 WERE $57,479,140.
(6) COMMENCEMENT OF OPERATIONS.
</TABLE>
New York Municipal Portfolio
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED
MAY 31, 1995 (1) $1.00 $0.015 (2) $(0.000)(3) $0.015 $(0.015) --
YEAR ENDED NOVEMBER
30,
1994 1.00 0.019(2) 0.000(3) 0.019 (0.019) --
1993 1.00 0.016(2) (0.000)(3) 0.016 (0.016) --
1992 1.00 0.025(2) (0.000)(3) 0.025 (0.025) --
APRIL 10, 1991 (6)
TO
NOVEMBER 30, 1991 1.00 0.024(2) (0.000)(3) 0.024 (0.024) --
<CAPTION>
SIX MONTHS ENDED
MAY 31, 1995 (1) $1.00 3.14%(4) $49.1 0.76%(2,4,5) 3.07%(2,4,5)
YEAR ENDED NOVEMBER
30,
1994 1.00 1.92% 48.0 0.82%(2) 1.90%(2)
1993 1.00 1.66% 42.2 0.79%(2) 1.64%(2)
1992 1.00 2.56% 32.9 0.74%(2) 2.43%(2)
APRIL 10, 1991 (6)
TO
NOVEMBER 30, 1991 1.00 4.29%(4) 18.4 0.56%(2,4) 3.80%(2,4)
<FN>
(1) UNAUDITED.
(2) REFLECTS A VOLUNTARY WAIVER OF $.001, $.002, $0.002 AND $.005 PER SHARE IN
ADVISORY FEES AND $.006 PER SHARE IN ADVISORY FEES AND REIMBURSEMENT OF
OTHER OPERATING EXPENSES, RESPECTIVELY, IN EFFECT DURING EACH PERIOD. HAD
SUCH WAIVERS AND REIMBURSEMENTS NOT OCCURRED, THE RATIO OF NET OPERATING
EXPENSES WOULD HAVE BEEN 1.01%, 1.01%, 1.03%, 1.19% AND 1.43%, RESPECTIVELY
AND THE RATIO OF NET INVESTMENT INCOME WOULD HAVE BEEN 2.82%, 1.71%, 1.40%,
1.98% AND 2.93%, RESPECTIVELY.
(3) LESS THAN $.0005 PER SHARE.
(4) ANNUALIZED.
(5) AVERAGE NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 1995 WERE $51,877,545.
(6) COMMENCEMENT OF OPERATIONS.
- ------------------------------
* ASSUMES REINVESTMENT OF ALL DIVIDENDS AND DISTRIBUTIONS.
</TABLE>
23
<PAGE>
- --------------------------------------------------------------------------------
QUEST CASH RESERVES QUEST CASH RESERVES
DIRECTORS AND OFFICERS
Joseph M. La Motta Director, President
Paul Y. Clinton Director
Thomas W. Courtney Director
Lacy B. Herrmann Director
George Loft Director
Everett Alcenat Vice President
Robert J. Bluestone Vice President
Bernard H. Garil Vice President
John C. Giusio, Jr. Vice President
Matthew Greenwald Vice President
Vikki Hanges Vice President
Susan A. Murphy Vice President
Catherine Puc Vice President
Sheldon Siegel Treasurer
Deborah Kaback Secretary
Leslie Klein Assistant Treasurer
Maria Camacho Assistant Secretary
Thomas E. Duggan Assistant Secretary
INVESTMENT ADVISER
Quest for Value Advisors
One World Financial Center
New York, NY 10281
DISTRIBUTOR
Quest for Value Distributors
Two World Financial Center
New York, NY 10080
CUSTODIAN, TRANSFER AND SHAREHOLDER SERVICING AGENT
State Street Bank and Trust Company
P.O. Box 8505
Boston, MA 02266
Table of Contents
President's Letter........................... 1
Investment Review............................ 2
Schedules of Investments..................... 4
Statements of Assets and Liabilities......... 16
Statements of Operations..................... 17
Statements of Changes in Net Assets.......... 18
Notes to Financial Statements................ 20
Financial Highlights......................... 22
PRIMARY PORTFOLIO
GOVERNMENT PORTFOLIO
GENERAL MUNICIPAL PORTFOLIO
CALIFORNIA MUNICIPAL PORTFOLIO
NEW YORK MUNICIPAL PORTFOLIO
SEMI-ANNUAL
REPORT
MAY 31, 1995
MANAGED BY
QUEST FOR VALUE ADVISORS
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus.
