<PAGE>
QUEST CASH RESERVES
January 8, 1996
Dear Shareholder:
During the fiscal year ended November 30, 1995, Quest Cash Reserves
continued to meet its objective of providing safety of principal, liquidity and
maximum current income. Safety of our shareholders' principal has always been
our greatest concern. Because of this we systematically perform on-going credit
analyses of the municipalities, corporations and other entities in which the
Portfolios invest. To further reduce risk, we continue to avoid all investments
in derivative securities in each of our Portfolios.
Although long-term interest rates have declined dramatically since our last
annual report to you, short-term interest rates have remained relatively high
and the yields on each of our portfolios are significantly higher today than
they were at this time last year. For instance, the seven-day compounded yield
of the Primary Portfolio at November 30, 1995 was 5.01% compared with a yield
of 4.47% one year earlier.
Recent Developments
Recently Quest for Value Advisors, the adviser to Quest Cash Reserves, sold
certain of its assets. Although most of the assets sold were related to the
equity and long-term fixed income funds in the Quest for Value Family of Funds,
the Quest name will no longer be available to the Portfolios or to their
adviser. Accordingly, Quest for Value Advisors has been renamed OpCap Advisors
and, effective January 31, 1996, Quest Cash Reserves will change its name to
OCC Cash Reserves. We want to assure you that the sale of the adviser's assets
will neither result in any change in the management of the Fund's adviser nor
in the way OCC Cash Reserves is managed.
If you have any questions or have any need to call us, please note that we
have a new toll-free phone number: 1-800-401-6672.
Thank you for your continuing support and we look forward to serving your
money market needs in the future. Best wishes for a healthy and happy New Year.
Sincerely,
/s/ Jospeh M. La Motta
Joseph M. La Motta
President
Quest Cash Reserves
One World Financial
Center
New York, NY 10281
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:
1-800-401-6672
<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.
Annual Review
During the fiscal year ended November 30, 1995, the daily dividends of the
Primary Portfolio averaged 5.07% on an annual basis or 5.19% compounded
monthly. At the fiscal year-end the Portfolio had a seven-day compounded yield
of 5.01%, up from 4.47% at the beginning of the year. The average maturity of
the Portfolio during the year ranged from a low of 29 days to a high of 69 days
and on November 30 was 47 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.
Annual Review
The Government Portfolio's daily dividend averaged 4.91% on an annual basis
or 5.02% compounded monthly in the fiscal year ended November 30, 1995. On
November 30 the seven-day compounded yield of the Portfolio was 4.88%, up from
4.52% a year earlier. The average maturity of the Portfolio during the year
ranged from 16 days to 50 days. On November 30, it was 23 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.
Annual Review
Daily dividends of the General Municipal Portfolio averaged 3.07% on an
annual basis and 3.11% compounded monthly during the fiscal year ended November
30. 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 5.15%. The seven-day compounded yield on
November 30 was 3.08% compared with the year earlier when it was 2.87%.
Average maturity for the Portfolio ranged from 29 days to 69 days and on
November 30 was 57 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 interest in the foregoing.
Annual Review
For the year ended November 30, 1995, the daily dividend averaged 3.06% on
an annual basis and 3.10% 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 5.77%. Between the end of the last fiscal year and
November 30, 1995, the seven-day compounded yield rose from 2.77% to 3.14%.
The average maturity of the securities in the Portfolio ranged from 22 days to
69 days and was 45 days on November 30.
2
<PAGE>
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.
Annual Review
In the year ended November 30, 1995, the daily dividends of the Portfolio
averaged 3.03% on an annual basis and 3.07% compounded monthly. This was
equivalent to an effective taxable yield of 5.78% 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%, 7.59375% and 4.46%, respectively. The seven-day
compounded yield rose from 2.88% to 3.18% between the 1994 and 1995 fiscal
year-ends. The average maturity of the Portfolio ranged between 19 days and 71
days. On November 30, it was 63 days.
TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
We are required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise you within 60 days of the Fund's fiscal year end (November
30, 1995) as to the Federal tax status of dividends and distributions received
by shareholders during such fiscal year. Accordingly, we are advising you that
per share dividends paid by the Primary and Government Portfolios amounting to
$0.051 and $0.049, respectively, are subject to Federal income tax.
Substantially all dividends paid by the General, California and New York
Municipal Portfolios during the fiscal year were Federally exempt interest
dividends, although each of those Portfolios did invest in securities which
paid interest subject to the Federal alternative minimum tax during its fiscal
year. The portion of dividends paid to shareholders subject to such tax
amounted to 40.9%, 19.8% and 25.1%, for the General, California and New York
Municipal Portfolios, respectively.
Since each of the Portfolio's fiscal year is not the calendar year, you will
be advised on IRS Form 1099 DIV as to the Federal tax status of the dividends
received by you in calendar 1995. The amounts that will be reported will be
the amounts to use on your 1995 Federal income tax return and probably will
differ from the amounts which we must report for the Portfolio's fiscal year
ended November 30, 1995. Enclosed with the mailing of this annual report is
additional tax information, including a breakdown of the interest income
derived by state for the General Municipal Portfolio and a quarterly breakdown
of the percentage of the income in the Government Portfolio qualifying for
state tax passthrough treatment. The breakdown of interest by state for the
General Municipal Portfolio may be of value in reducing a shareholder's state
or local tax liability, if any. Shareholders are advised to consult with their
own tax advisors as to the Federal, state and local tax status of the income
received.
3
<PAGE>
November 30, 1995
SCHEDULES OF INVESTMENTS
- --------------------------------------------------------------------------------
PRIMARY PORTFOLIO
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
U.S. Government Securities--4.2%
Federal Farm Credit Bank,
$ 15,000 5.63%, 1/4/96.................................. $ 14,920,242
20,000 VRDN*, 5.87%-5.95%,
3/21/96-5/9/96................................. 19,997,576
36,200 Federal National
Mortgage Association,
5.585%-5.63%,
12/7/95-1/10/96................................ 36,035,887
------------
Total U.S. Government Securities
(amortized cost--$70,953,705).................................. $ 70,953,705
------------
Bankers' Acceptances--2.1%
$ 9,900 First Union National Bank,
5.60%, 12/21/95................................ $ 9,869,200
7,000 National Bank of Detroit,
5.64%, 1/23/96-1/24/96......................... 6,941,250
6,000 National Westminster Bank PLC,
5.63%, 12/12/95................................ 5,989,678
12,000 Republic National Bank of New York,
5.60%, 1/8/96.................................. 11,929,067
------------
Total Bankers' Acceptances
(amortized cost--$34,729,195).................................. $ 34,729,195
------------
Certificates of Deposit--5.2%
$ 36,000 National Westminster Bank PLC,
5.78%-5.81%,
1/12/96-2/1/96................................. $ 36,000,636
50,000 Societe Generale Bank,
5.76%-5.80%,
12/18/95-1/4/96................................ 50,000,000
------------
Total Certificates of Deposit
(amortized cost--$86,000,636).................................. $ 86,000,636
------------
Commercial Paper--85.2%
$ 39,600 Abbey National North America,
5.64%-5.71%,
1/5/96-3/6/96.................................. $ 39,289,074
37,450 ABN-Amro North America Finance Inc.,
5.57%-5.70%,
12/5/95-2/16/96................................ 37,229,441
18,875 A. H. Robbins Co. Inc.,
5.70%-5.71%,
1/16/96-2/8/96................................. 18,703,847
17,400 Alberta (Province of),
5.65%-5.71%,
12/28/95-1/12/96............................... 17,302,026
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 54,000 American Express Credit Corp.,
5.60%-5.75%,
12/4/95-2/5/96................................. $ 53,738,806
30,000 American Home Products Corp.,
5.70%-5.72%,
12/18/95-2/2/96................................ 29,790,731
35,000 American Telephone & Telegraph Co.,
5.62%-5.64%, 12/18/95.......................... 34,906,925
20,000 AVCO Financial Services Inc.,
5.70%-5.72%,
1/9/96-1/10/96................................. 19,874,700
60,250 Bayerische Landesbank Girozentrale,
5.61%-5.76%,
1/2/96-2/26/96................................. 59,771,439
15,000 Cheltenham & Gloucester Building
Society, 5.74%, 1/3/96......................... 14,921,075
41,100 Commerzbank U.S. Finance Inc.,
5.62%-5.71%,
1/5/96-2/5/96.................................. 40,801,871
8,800 Compagnie Bancaire USA Funding
Corp., 5.65%-5.76%,
1/4/96-2/5/96.................................. 8,727,536
25,570 Daimler Benz North America Corp.,
5.65%-5.72%,
1/3/96-2/14/96................................. 25,357,128
47,748 Deere (John) Capital Corp.,
5.60%-5.68%,
12/4/95-2/5/96................................. 47,486,806
25,400 Dresdner U.S. Finance Inc.,
5.71%-5.72%,
1/22/96-1/23/96................................ 25,187,919
31,465 Eksportfinans A/S,
5.62%-5.66%,
12/1/95-12/20/95............................... 31,410,132
25,915 Finnish Export Credit LTD,
5.70%-5.72%,
1/23/96-1/24/96................................ 25,694,189
6,000 Ford Credit Europe PLC,
5.74%, 12/19/95................................ 5,982,780
36,000 Ford Motor Credit Co.,
5.68%-5.69%,
12/6/95-1/12/96................................ 35,854,611
10,000 General Electric Capital Services Inc.,
5.62%, 1/22/96................................. 9,918,967
60,000 General Motors Acceptance Corp.,
5.62%-5.65%,
12/8/95-12/28/95............................... 59,825,010
30,000 Generale Bank Inc.,
5.59%-5.61%,
1/16/96-2/2/96................................. 29,758,969
4
<PAGE>
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Commercial Paper--85.2% (cont'd)
$ 63,000 Glaxo Holdings PLC,
5.64%-5.66%,
2/12/96-2/22/96................................ $ 62,202,545
33,285 Halifax Building Society,
5.63%-5.73%,
12/11/95-1/3/96................................ 33,180,815
35,000 Hanson Finance (U.K.) PLC,
5.63%-5.65%,
12/4/95-3/1/96................................. 34,639,507
6,000 Hewlett-Packard Co.,
5.60%, 2/29/96................................ 5,916,000
20,000 IBM Credit Corp.,
5.65%, 1/29/96................................. 19,814,806
62,400 Merrill Lynch & Co. Inc.,
5.65%-5.70%,
12/4/95-2/29/96................................ 61,927,528
55,000 Morgan (J.P.) & Co. Inc.,
5.61%-5.62%,
1/5/96-1/31/96................................. 54,537,808
54,300 Morgan Stanley Group Inc.,
5.70%, 2/5/96-2/12/96.......................... 53,688,232
5,000 Oesterreichische Kontrollbank AG,
5.72%, 1/8/96.................................. 4,969,811
8,000 Pitney Bowes Credit Corp.,
5.64%, 12/1/95................................. 8,000,000
4,000 Prudential Funding Corp.,
5.65%, 12/14/95................................ 3,991,839
25,000 Queensland Treasury Corp.,
5.64%, 1/8/96.................................. 24,851,167
15,000 Rabobank USA Financial Corp.,
5.60%, 2/26/96................................. 14,797,000
51,650 Republic New York Corp.,
5.60%-5.66%,
12/11/95-1/18/96............................... 51,380,037
63,000 Royal Bank of Canada,
5.61%-5.70%,
1/29/96-2/2/96................................. 62,393,393
10,000 Societe Generale N.A. Inc.,
5.61%, 12/22/95................................ 9,967,275
8,500 Student Loan Corp.,
5.705%, 1/22/96................................ 8,429,955
64,150 Svenska Handelsbanken Inc.,
5.62%-5.73%,
12/27/95-3/29/96............................... 63,532,516
41,000 Sweden (Kingdom of),
5.65%-5.70%,
1/16/96-2/28/96................................ 40,508,444
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 52,000 Swedish Export Credit Corp.,
5.62%-5.64%,
12/11/95-12/22/95..............................$ 51,863,308
15,400 Toronto-Dominion Holdings
USA Inc., 5.71%, 1/8/96........................ 15,307,181
52,965 Transamerica Finance Corp.,
5.62%-5.76%,
12/5/95-1/30/96................................ 52,688,478
14,100 U.S. Borax & Chemical Corp.,
5.63%, 3/4/96.................................. 13,892,722
--------------
Total Commercial Paper
(amortized cost--$1,424,014,349)...............................$1,424,014,349
--------------
Corporate Notes--2.9%
$ 15,000 CIT Group Holdings Inc., VRDN*,
5.89%, 9/26/96.................................$ 14,989,835
33,500 General Electric Capital Corp.,
VRDN*, 5.84%-6.05%,
1/10/96-8/16/96................................ 33,499,946
--------------
Total Corporate Notes
(amortized cost--$48,489,781)..................................$ 48,489,781
--------------
Repurchase Agreement--.8%
$ 14,000 J.P. Morgan Securities Inc.,
dtd. 11/30/95, 5.90%, 12/1/95
(proceeds at maturity $14,002,294,
collateralized by $14,035,000 par,
$14,280,613 value U.S. Treasury
Notes, 6.875%, 10/31/96)
(amortized cost-$14,000,000)...................$ 14,000,000
--------------
Total Investments
(amortized cost $1,678,187,666+).......................100.4% $1,678,187,666
Other Liabilities in Excess
of Other Assets........................................ (0.4) (7,058,305)
----- --------------
Total Net Assets
(applicable to 1,671,168,463 shares
outstanding at $1.00 per share)........................100.0% $1,671,129,361
===== ==============
GOVERNMENT PORTFOLIO
U.S. Government Securities--96.6%
$ 15,000 Federal Farm Credit Bank, VRDN*,
5.87%-5.95%,
3/21/96-5/9/96.................................$ 14,997,946
5
<PAGE>
November 30, 1995
SCHEDULES OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO (cont'd)
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
U.S. Government Securities (cont'd)
$ 47,300 Federal Home Loan Bank,
5.56%-5.80%,
12/1/95-2/6/96................................. $ 47,173,400
43,000 Federal National
Mortgage Association,
5.53%-5.61%,
12/7/95-1/30/96................................ 42,740,515
------------
Total U.S. Government Securities
(amortized cost--$104,911,861)................................. $104,911,861
------------
Repurchase Agreement--9.2%
$ 10,000 J.P. Morgan Securities Inc.,
dtd. 11/30/95, 5.90%, 12/1/95
(proceeds at maturity $10,001,639,
collateralized by $10,165,000 par,
$10,203,119 value Federal Home
Loan Mortgage Corp., 5/13/96)
(amortized cost-$10,000,000)................... $ 10,000,000
------------
Total Investments
(amortized cost--$114,911,861+)......................... 105.8% $114,911,861
Other Liabilities in Excess of
Other Assets............................................ (5.8) (6,336,831)
----- ------------
Total Net Assets (applicable to 108,596,523
shares outstanding at $1.00 per share).................. 100.0% $108,575,030
===== ============
GENERAL MUNICIPAL PORTFOLIO
Alabama--1.9%
$ 1,600 Alabama Pvt. Clges. & Univs., FAR,
Ser. A, VRDN* (Insd.; FGIC),
3.60%, 12/6/95................................. $ 1,600,000
575 Fairfield IDB, EIR,
USX Corp. Proj. (LC;
Wachovia Bank), 3.70%,
5/1/96** 575,000
------------
2,175,000
------------
Alaska--4.8%
3,600 Alaska St. HF Corp.,
Ser. A, VRDN*,
3.625%, 12/6/95................................ 3,600,000
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Alaska (cont'd)
$ 2,000 Valdez Marine Term. Rev.,
Arco Transn. Proj.,
Ser. B, VRDN*,
3.75%, 12/6/95................................. $ 2,000,000
------------
5,600,000
------------
Arizona--6.0%
1,000 Arizona Edl. Ln. Mktg. Corp.,
ELR, Ser. A, VRDN*
(LC; Dresdner Bank AG),
3.80%, 12/6/95................................. 1,000,000
4,000 Cochise Cnty. PCR, SWDR,
Arizona Elec. Pwr. Coop. Inc.
Proj., 3.90%, 3/1/96***........................ 4,000,000
2,000 Maricopa Cnty. PCC, PCR,
So. California Edison Palo Verdi
Proj., 3.70%, 2/1/96........................... 2,000,000
------------
7,000,000
------------
California--6.1%
California HEL Auth.,
1,000 Ser. A (LC; Nat'l. Westminster
Bank PLC), 4.35%, 5/1/96**..................... 1,000,000
1,000 Ser. E-5 (CS; SLMA),
4.25%, 6/1/96**................................ 1,000,000
1,000 California Hsg. FAGR,
Home Mtg. Prog., Ser. E,
4.60%, 2/1/96**................................ 1,000,000
2,000 California St. RAW's,
Ser. C, dtd. 7/26/94,
5.75%, 4/25/96................................. 2,008,508
2,000 Ukiah Elec. Rev.,
Ser. A,
8.00%, 6/1/96.................................. 2,121,806
------------
7,130,314
------------
Colorado--1.7%
2,000 Colorado St. GFR, TRAN's,
Ser A, dtd. 7/6/95,
4.50%, 6/27/96................................. 2,008,805
------------
Florida--1.2%
1,350 Putnam Cnty. Dev. Auth., PCR,
Seminole Elec. Co. Proj.,
Ser. H-1, VRDN*,
3.65%, 12/6/95................................. 1,350,000
------------
Hawaii--.9%
1,000 Secondary Mkt. Svcs. Corp., SLR,
Ser. II, VRDN* (LC; Nat'l.
Westminster Bank PLC),
3.70%, 12/6/95................................. 1,000,000
------------
6
<PAGE>
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Illinois--10.3%
$ 6,300 Chicago O'Hare Int'l. Arpt.,
Ser. B, VRDN*
(LC; Societe Generale Bank),
3.80%, 12/6/95................................. $ 6,300,000
1,000 Chicago Tender Notes,
Ser. A (LC; Morgan Guaranty
Trust Co., Inc.), 3.75%, 5/1/96**.............. 1,000,000
1,800 Illinois Hlth. FAR,
Hosp. Sisters Svc. Proj., Ser. E,
VRDN* (Insd.; MBIA),
3.60%, 12/6/95................................. 1,800,000
2,800 Parkside Dev. Corp. Proj.,
VRDN* (LC: First Nat'l. Bank
of Chicago), 3.70%, 12/6/95.................... 2,800,000
------------
11,900,000
------------
Indiana--3.9%
3,830 Indiana Bond Bank,
Com. Sch. Fd., Adv. Pur. Fdg.,
(Insd.; AMBAC),
3.90%, 2/1/96**................................ 3,832,494
650 Mt. Vernon PCR, SWDR,
General Elec. Co. Proj.,
3.95%, 1/29/96................................. 650,000
------------
4,482,494
------------
Kansas--.7%
800 Butler Cnty. SWDR,
Texaco Inc. Refng. & Marketing
Proj., Ser. A, VRDN*,
3.85%, 12/1/95................................. 800,000
------------
Kentucky--6.7%
200 Boone Cnty. PCR,
Cincinnati Gas & Elec. Co.
Proj., Ser. A, VRDN*
(LC; Union Bank of Switzerland),
3.85%, 12/1/95................................. 200,000
4,000 Graves Cnty. IDA,
Seaboard Farms of Kentucky Inc.
Proj., VRDN* (LC; Bank of New
York), 3.85%, 12/7/95.......................... 4,000,000
3,600 Mayfield Cnty. IDR,
Seaboard Farms of Kentucky Inc.
Proj., VRDN* (LC; Bank of New
York), 3.85%, 12/7/95.......................... 3,600,000
------------
7,800,000
------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Louisiana--4.5%
$ 200 Calcasieu Parish Inc. IDB, Env.
Rev., Citgo Petroleum Corp.
Proj., VRDN* (LC; Banque
Nationale de Paris),
3.90%, 12/1/95................................. $ 200,000
2,950 Louisiana Public FAR,
Clge. & Univ. Equip.
& Cap. Proj., Ser. A,
VRDN* (Insd.; FGIC),
3.60%, 12/6/95................................. 2,950,000
1,000 Orleans Parish Sch. Brd.,
Ser. A (Insd.; MBIA),
7.00%, 6/1/96.................................. 1,035,881
1,000 St. Charles Parish PCR,
Shell Oil Co. NorCo. Proj.,
VRDN*,
3.80%, 12/1/95................................. 1,000,000
------------
5,185,881
------------
Maryland--2.8%
3,300 Anne Arundel Cnty. EDR,
Baltimore Gas & Elec. Co.
Proj.,
3.80%-3.95%,
12/13/95-1/29/96............................... 3,300,000
------------
Massachusetts--1.0%
1,165 Massachusetts Hsg. FAGR,
Single Fam. Mtg. Prog.,
4.15%, 6/1/96**................................ 1,165,000
------------
Minnesota--3.4%
3,000 Hubbard Cnty. SWDR,
Potlatch Corp. Proj.,
VRDN* (LC; Credit Suisse),
3.80%, 12/6/95................................. 3,000,000
250 Minnesota St. HFA,
Ser. D (Insd.; MBIA),
3.80%, 8/1/96.................................. 250,000
750 University of Minn., Univ. Revs.,
Ser. G, 3.65%, 2/1/96***....................... 750,000
------------
4,000,000
------------
Missouri--1.4%
Missouri EIERA, PCR,
Union Elec. Co. Proj.,
600 Ser. A (LC; Swiss Bank Corp.),
4.00%, 6/1/96***............................... 600,000
1,000 Ser. B (LC; Union Bank of
Switzerland), 4.00%, 6/1/96***................. 1,000,000
------------
1,600,000
------------
7
<PAGE>
November 30, 1995
SCHEDULES OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
GENERAL MUNICIPAL PORTFOLIO (cont'd)
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Nebraska--2.2%
$ 1,600 Nebraska HEL Prog.,
Ser. C, VRDN*
(CS; SLMA),
3.75%, 12/6/95................................. $ 1,600,000
1,000 Omaha Pub. Pwr. Dist., Elec.
Rev., Ser. A,
3.90%, 2/1/96.................................. 1,000,651
------------
2,600,651
------------
Nevada--.6%
700 Clark Cnty. AIR,
Sub Lien, Ser. A-2,
VRDN* (LC; Toronto Dominion
Bank), 3.75%, 12/6/95.......................... 700,000
------------
New Hampshire--1.8%
1,100 New Hampshire St. BFA, PCR,
Pub. Svc. Co. of New Hampshire
Proj., Ser. D, VRDN* (LC; Barclays
Bank PLC), 3.85%, 12/6/95...................... 1,100,000
1,000 New Hampshire St. HFA,
Single Fam. Mtg. Rev., Ser. F,
4.55%, 4/1/96**................................ 1,000,000
------------
2,100,000
------------
New Mexico--2.2%
2,600 Farmington PCR,
Arizona Pub. Svc. Co. Proj.,
Ser C,VRDN* (LC; Union Bank
of Switzerland), 3.80%, 12/1/95................ 2,600,000
------------
New York--4.5%
1,200 Nassau Cnty. TAN's,
Ser. B, dtd. 9/26/95,
4.50%, 4/15/96................................. 1,202,618
1,000 New York St. ERDA, PCR,
Rochester Gas & Elec. Corp.
Proj., (LC; Credit Suisse),
3.75%, 11/15/96***............................. 1,000,000
1,000 New York St. JDA, St. Gtd.,
Ser. B, VRDN*,
4.05%, 12/1/95................................. 1,000,000
2,000 New York St. PAR,
3.85%, 3/1/96***............................... 2,000,000
------------
5,202,618
------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Ohio--.9%
$ 1,000 Ohio St. Air Quality DAR,
JMG Fdg. Ltd. Proj., Ser. B,
VRDN* (LC; Societe Generale
Bank), 3.70%, 12/6/95.......................... $ 1,000,000
------------
Oregon--1.7%
Oregon St. GO, Ser. C,
1,000 Higher Ed.,
3.95%, 3/1/96.................................. 1,000,000
905 Pollution Ctl.,
8.75%, 6/1/96.................................. 927,454
------------
1,927,454
------------
Pennsylvania--6.3%
1,700 Emmaus GAR,
Ser. C-8, VRDN*
(LC; Midland Bank PLC),
3.80%, 12/6/95................................. 1,700,000
2,000 Pennsylvania St. HEA, SLR,
Ser. A, VRDN*
(CS; SLMA),
3.80%, 12/7/95................................. 2,000,000
1,000 Philadelphia TRAN's,
Ser. A, dtd. 7/6/95,
4.50%, 6/27/96................................. 1,003,027
2,000 Upper Allegheny JSA,
4.50%, 1/15/96**............................... 2,001,667
600 York Cnty. IDA, IDR,
Preston Trucking Co. Proj.,
VRDN* (LC; Mellon Bank),
3.65%, 12/1/95................................. 600,000
------------
7,304,694
------------
Rhode Island--.9%
1,000 Rhode Island HMFC,
Home Ownership Oppty. Prog.,
Ser. B, 3.90%, 6/27/96**....................... 1,000,000
------------
South Carolina--.8%
985 York Cnty. PCR,
Saluda River Proj., Ser. '84E,
3.80%, 2/15/96***.............................. 985,000
------------
Tennessee--3.7%
2,300 Hamilton Cnty. IDR,
Seaboard Feed of Chattanooga
Proj., VRDN* (LC; Bank of
New York), 3.85%, 12/7/95...................... 2,300,000
8
<PAGE>
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Tennessee (cont'd)
$ 2,000 Metropolitan Nashville Arpt.,
VRDN* (Insd.; FGIC),
3.65%, 12/6/95................................. $ 2,000,000
------------
4,300,000
------------
Texas--8.2%
1,000 Brazos HEA,
Ser. B-1, VRDN*
(CS; SLMA),
3.75%, 12/6/95................................. 1,000,000
2,300 Brazos River Auth., PCR,
Texas Utils. Elec. Co. Proj., Ser. A,
(LC; Canadian Imperial Bank),
3.95%, 2/8/96.................................. 2,300,000
300 Grapevine IDR,
American Airlines Inc. Proj.,
Ser. B-3, VRDN* (LC; Morgan
Guaranty Trust Co., Inc.),
3.85%, 12/1/95................................. 300,000
1,000 Harris Cnty. Hosp. Dist., Mtg. Rev.,
8.50%, 4/1/96.................................. 1,057,811
2,000 Texas A&M Univ., Perm.
Univ. Fd., Ser. B,
3.80%, 12/8/95................................. 2,000,000
790 Texas HEA, EEIR,
Ser. B, VRDN*
(Insd.; FGIC),
3.60%, 12/6/95................................. 790,000
2,000 Texas St. TRAN's,
Ser. A, dtd. 9/1/95,
4.75%, 8/30/96................................. 2,010,885
------------
9,458,696
------------
Utah--2.6%
1,000 Intermountain Pwr. Agy.,
PSR, Ser. E
(LC; Swiss Bank Corp.),
3.80%, 3/15/96***.............................. 1,000,000
2,000 Utah St. Brd. Regents SLR,
Ser. L, VRDN*
(Insd.; AMBAC),
3.85%, 12/6/95................................. 2,000,000
------------
3,000,000
------------
Washington--.5%
615 Washington St. HF Cmnty.,
Single Fam. Mtg. Prog., Ser. 1A,
4.10%, 6/1/96**................................ 615,000
------------
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
Wisconsin--3.6%
$ 4,200 Wisconsin HFFAR,
Hosp. Sisters Svc. Proj.,
Ser. G, VRDN* (Insd.; MBIA),
3.60%, 12/6/95................................. $ 4,200,000
------------
Wyoming--.9%
1,000 Sweetwater Cnty. EIR,
Pacificorp Proj., Ser. A
(LC; Westdeutsche Landesbank),
3.90%, 1/26/96................................. 1,000,000
------------
Total Investments
(amortized cost--$114,491,607+)......................... 98.7% 114,491,607
Other Assets in Excess
of Other Liabilities.................................... 1.3 1,472,966
----- ------------
Total Net Assets
(applicable to 116,057,333 shares
outstanding at $1.00 per share)......................... 100.0% $115,964,573
===== ============
CALIFORNIA MUNICIPAL PORTFOLIO
California--98.8%
$ 1,000 Alameda Cnty. TA, STR,
(Insd.; FGIC),
4.50%, 5/1/96.................................. $ 1,003,236
500 California EFAR,
Stanford Univ. Proj., Ser. G.,
8.10%, 12/1/95................................. 518,777
1,000 California HFF,
Scripps Mem. Hosp. Proj., Ser. A,
VRDN* (LC; Morgan Guaranty
Trust Co., Inc.), 3.40%, 12/7/95............... 1,000,000
California HFFAR, Kaiser
Permanente Proj., VRDN*,
3,000 Ser. A, 3.45%, 12/6/95......................... 3,000,000
500 Ser. B, 3.45%, 12/6/95......................... 500,000
4,300 Mem. Hlth. Svcs. Proj.,
VRDN*,
3.45%, 12/6/95................................. 4,300,000
1,000 California Hsg. FAGR,
Home Mtg. Prog., Ser. E,
4.60%, 2/1/96**................................ 1,000,000
9
<PAGE>
November 30, 1995
SCHEDULES OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO (cont'd)
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
California PCFA, PCR,
Homestake Mining Proj.,
VRDN* (LC; Bank of Nova Scotia),
$ 2,200 Ser. 84A, 3.50%, 12/6/95....................... $ 2,200,000
800 Ser. 84B, 3.50%, 12/6/95....................... 800,000
Pacific Gas & Elec. Co. Proj.,
2,000 Ser. A (LC; Swiss Bank Corp.),
3.80%, 12/7/95................................. 2,000,000
1,500 Ser. C (LC; Credit Suisse),
3.55%, 12/11/95................................ 1,500,000
So. Cal. Edison Proj.,
2,000 Ser. B,
3.55%, 2/2/96.................................. 2,000,000
VRDN*,
100 Ser. B, 3.85%, 12/1/95......................... 100,000
500 Ser. C, 3.85%, 12/1/95......................... 500,000
200 Ser. D, 3.85%, 12/1/95......................... 200,000
4,400 California PCFA, PCR, RRR,
Wadham Energy Proj., Ser. C,
VRDN* (LC; Banque Nationale de
Paribas), 3.90%, 12/6/95....................... 4,400,000
California PCFA, RRR,
200 Burney Forest Prod. Proj., Ser. A,
VRDN* (LC; Nat'l. Westminster
Bank PLC), 3.85%, 12/1/95...................... 200,100
1,300 Delano Proj.,
VRDN* (LC; ABN-Amro Bank),
3.75%, 12/1/95................................. 1,300,000
600 Ultrapower Malaga Corp. Proj.,
VRDN* (LC; Bank of America),
Ser. B, 3.80%, 12/1/95......................... 600,000
1,100 California St. DWR,
Cent. Vy. Proj.,
VRDN* (LC; Canadian Imperial
Bank), 3.50%, 12/6/95.......................... 1,100,000
4,507 California St. DWR, Rev.,
3.50%-3.65%, 12/5/95-12/21/95.................. 4,507,000
5,700 California St. RAW's,
Ser. C, dtd. 7/26/94,
5.75%, 4/25/96................................. 5,749,840
California SCD Corp. Rev., Ind'l. Dev.,
445 Florestone Prod. Proj.,
VRDN* (LC; Bank of Tokyo),
3.95%, 12/6/95................................. 445,000
1,800 South Bay Circuits Proj.,
VRDN* (CS; California St. Tchrs.
Ret. Fd.), 3.95%, 12/6/95...................... 1,800,000
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 200 California SCD Auth., SWFR,
Chevron USA Inc. Proj.,
VRDN*, 3.70%, 12/1/95.......................... $ 200,000
3,000 Contra Costa TA, STR,
Ser. A, VRDN* (Insd.; FGIC),
3.45%, 12/6/95................................. 3,000,000
1,000 East Bay MUD,
3.50%, 1/22/96................................. 1,000,000
2,000 Loma Linda HR,
Loma Linda Univ. Med. Ctr.
Proj., Ser. C, VRDN*
(LC; Ind'l. Bank of Japan),
4.35%, 12/7/95................................. 2,000,000
900 Long Beach HFR,
Mem. Hlth. Svcs. Proj.,
VRDN*, 3.45%, 12/6/95.......................... 900,000
2,300 Los Angeles Cnty. DWP,
3.55%, 1/31/96................................. 2,300,000
680 Los Angeles Cnty. IDA, IDR,
Hon Industries Inc. Proj.,
VRDN*, 3.40%, 12/6/95.......................... 680,000
3,000 Los Angeles Cnty. Met. TA, Ser. A,
(LC; ABN-Amro Bank, Banque
Nationale de Paribas and Nat'l.
Westminster Bank PLC),
3.55%-3.70%, 12/6/95-12/18/95.................. 3,000,000
1,000 Metropolitan WD of So. California,
3.70%, 12/7/95................................. 1,000,000
1,000 Monterey Cnty. FAR,
Reclamation & Dist. Proj., VRDN*
(LC; Dai-Ichi Kangyo Bank),
4.15%, 12/7/95................................. 1,000,000
890 Morgan Hill Redev. Agy., Tax Alloc.,
Ojo De Agua Cmnty. Dev. Proj.,
7.875%, 3/1/96................................. 931,556
1,100 Northern California Pwr. Agy.,
PPR, (Insd.; AMBAC),
7.50%, 7/1/96.................................. 1,160,997
2,000 Sacramento Cnty. TRAN's,
dtd. 7/5/95, 4.75%, 10/4/96.................... 2,013,901
2,000 Sacramento MUD, Ser. I
(LC; Bayerische Landesbank
Girozentrale), 3.60%, 12/13/95................. 2,000,000
2,300 San Joaquin Cnty. TA, STR,
VRDN* (LC; Sumitomo Bank),
3.95%, 12/6/95................................. 2,300,000
500 Santa Ana HFR,
Multi Modal-Town & Ctry. Proj.,
VRDN* (LC; Banque Nationale de
Paribas), 3.70%, 12/1/95....................... 500,000
10
<PAGE>
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 5,700 Santa Clara Cnty. Fing. Auth., Lease
Rev., VMC Fac. Replacement Proj.,
Ser. B, VRDN* (LC; Union Bank
of Switzerland), 3.45%, 12/6/95................ $ 5,700,000
500 Santa Clara Vy. WD,
5.75%, 6/1/96.................................. 506,374
2,000 Ukiah Elec. Rev.,
Ser. A, 8.00%, 6/1/96.......................... 2,121,806
2,000 West Basin WD,
3.50%-3.70%, 1/24/96-2/26/96................... 2,000,000
------------
Total Investments
(amortized cost-$75,038,587+)......................... 98.8% $ 75,038,587
Other Assets in Excess
of Other Liabilities.................................. 1.2 873,500
----- ------------
Total Net Assets
(applicable to 75,933,638 shares
outstanding at $1.00 per share)....................... 100.0% $ 75,912,087
===== ============
NEW YORK MUNICIPAL PORTFOLIO
New York--101.1%
$ 2,000 Albany GO,
(Insd.; AMBAC),
3.65%, 1/15/96................................. $ 2,000,000
1,000 Albany Cnty. GO,
South Mall Constr. Proj.,
Ser. A (Insd.; FGIC),
4.30%, 4/1/96.................................. 1,001,378
1,000 Monroe Cnty. BAN's,
Ser. A, dtd. 6/8/95,
4.50%, 6/7/96.................................. 1,002,977
Nassau Cnty. BAN's,
1,000 Ser. E, dtd. 6/30/95,
4.25%, 3/15/96................................. 1,001,671
1,000 Ser. F, dtd. 8/30/95,
4.50%, 3/15/96................................. 1,001,824
1,000 Nassau Cnty. GO,
Ser. H (Insd.; MBIA),
3.80%, 6/15/96................................. 1,001,564
New York City GO,
200 Ser. A-7, VRDN*
(LC; Morgan Guaranty Trust
Co., Inc.), 3.70%, 12/1/95..................... 200,000
500 Ser. B-4, VRDN*
(LC; Union Bank of Switzerland),
4.00%, 12/1/95................................. 500,000
100 Ser. E-2, VRDN*
(LC; Ind'l. Bank of Japan),
3.85%, 12/1/95................................. 100,000
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 500 New York City IDA, CFR,
Childrens Oncology Soc. Proj.,
VRDN* (LC; Barclays Bank PLC),
3.45%, 12/6/95................................. $ 500,000
New York City IDA, IDR,
1,000 JFK Field Hotel Assoc. Proj.,
VRDN* (LC; Banque Indosuez),
3.60%, 12/6/95................................. 1,000,000
1,000 La Guardia Arpt. Assoc. Proj.,
VRDN* (LC; Banque Indosuez),
3.60%, 12/6/95................................. 1,000,000
700 New York City IDA, SFR,
Compagnie Nationale Air Proj.,
VRDN* (LC; Societe Generale Bank),
3.50%, 12/6/95................................. 700,000
2,000 New York City MFA,
3.80%-3.90%, 12/4/95-12/8/95................... 2,000,000
New York City MWFASSR, Ser. A,
1,500 7.00%, 6/15/96................................. 1,555,290
200 VRDN*, 4.00%, 12/1/95.......................... 200,000
1,000 New York City TAN's,
Ser. A, dtd. 8/2/95,
4.50%, 2/15/96................................. 1,001,368
New York City Trust CRR,
2,000 Carnegie Hall Proj., VRDN*
(LC; Dai-Ichi Kangyo Bank),
4.05%, 12/6/95................................. 2,000,000
1,500 Museum of Broadcasting Proj.,
VRDN* (LC; Sumitomo Bank),
4.00%, 12/6/95................................. 1,500,000
New York St. DAR,
1,100 Cornell Univ. Proj., Ser. B, VRDN*,
3.70%, 12/1/95................................. 1,100,000
2,615 Metropolitan Museum of Art Proj.,
Ser. B, VRDN* (Insd.; MBIA),
3.25%, 12/6/95................................. 2,615,000
1,400 Miriam Osborn Mem. Home Proj.,
Ser. A, VRDN* (LC; Banque
Nationale de Paribas),
3.60%, 12/6/95................................. 1,400,000
1,980 New York Univ. Proj.,
(Insd.; MBIA),
6.625%, 7/1/96................................. 2,059,890
Sloan Kettering Mem. Hosp. Proj.,
VRDN* (LC; Chemical Bank),
1,000 Ser. C, 3.65%, 12/8/95......................... 1,000,000
800 Ser. D, 3.65%, 12/13/95........................ 800,000
750 Spl. Oblig. Bonds, St. Univ. Edl.
Fac. Proj., Ser. A, 6.40%, 5/1/96.............. 758,094
11
<PAGE>
November 30, 1995
SCHEDULES OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO (cont'd)
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 500 New York St. EFC, PCR,
Revolving Fd. Pooled Ln. Prog.,
Ser. A, 3.70%, 9/15/96......................... $ 500,170
2,000 New York St. EFC, SWDR,
General Elec. Co. Proj., Ser. A,
3.65%, 12/13/95................................ 2,000,000
New York St. ERDA, PCR,
1,300 Cent. Hudson Gas & Elec. Co.
Proj., Ser. A, VRDN*
(LC; Union Bank of Switzerland),
3.80%, 12/7/95................................. 1,300,000
1,000 New York St. Elec. & Gas Co. Proj.,
Ser. B, 3.85%, 10/15/96***..................... 1,000,000
Rochester Gas & Elec. Co. Proj.,
VRDN*,
1,500 (LC; Bank of New York),
3.65%, 12/1/95................................. 1,500,000
1,000 (LC; Credit Suisse),
3.75%, 11/15/96***............................. 1,000,000
1,000 New York St. GO,
6.50%, 3/1/96.................................. 1,007,033
New York St. JDA, St. Gtd.,
VRDN*,
785 Ser. B, 4.05%, 12/1/95......................... 785,000
Spl. Purp.,
1,020 Ser. A, 4.05%, 12/1/95......................... 1,020,000
810 Ser. B, 4.05%, 12/1/95......................... 810,000
3,000 New York St. LGAC,
Ser. E, VRDN* (LC; Canadian
Imperial Bank), 3.55%, 12/6/95................. 3,000,000
New York St. MCF, FAGR,
1,200 Mt. Sinai Hosp. Proj., Ser. C,
VRDN*, 8.875%, 1/15/96......................... 1,258,976
1,000 Insd. Mtg. Hosp. Prog., Ser. A.,
8.50%, 1/15/96................................. 1,025,916
Principal
Amount
(000) Value
- --------------------------------------------------------------------------------
$ 1,000 New York St. PAR,
3.85%, 3/1/96***............................... $ 1,000,000
635 Niagra Cnty. IDA, IDR,
Pyron Corp. Proj., VRDN*
(LC; Chemical Bank),
3.65%, 12/6/95................................. 635,000
1,000 Port Auth. of New York & New Jersey,
Spl. Oblig. Bonds, Ser. 1, VRDN*,
3.65%, 12/1/95................................. 1,000,000
851 Rensselaer Cnty. GO,
Ser. A (Insd.; FGIC), 5.50%, 5/1/96............ 856,133
1,000 St. Lawrence Cnty. IDA, EIR,
Reynolds Metals Co. Proj., VRDN*
(LC; Royal Bank of Canada),
3.60%, 12/6/95................................. 1,000,000
1,000 Suffolk Cnty. IDA, IDR,
Nissequogue Cogen Ptnrs. Proj.,
VRDN* (LC; Toronto Dominion
Bank), 3.75%, 12/6/95.......................... 1,000,000
1,000 Suffolk Cnty. Wtr. Auth., BAN's,
VRDN*, dtd. 12/21/94,
3.65%, 12/6/95................................. 1,000,000
450 Walkill IDA, PCR,
Reynolds Metals Co. Proj., VRDN*
(LC; Nat'l. Westminster Bank PLC),
3.80%, 12/6/95................................. 450,000
750 Westchester Cnty. GO,
5.50%, 12/15/95................................ 750,466
------------
Total Investments
(amortized cost-$52,897,750+)........................... 101.1% $ 52,897,750
Other Liabilities in Excess
of Other Assets......................................... (1.1) (554,625)
----- ------------
Total Net Assets
(applicable to 52,366,926 shares
outstanding at $1.00 per share)......................... 100.0% $ 52,343,125
===== ============
- --------------------------------------------------------------------------------
+ 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.
See accompanying notes to financial statements.
12
<PAGE>
General Abbreviations:
AIR Airport Improvement Revenue
AMBAC American Mortgage Bond Assurance Corporation
BAN Bond Anticipation Note
BFA Business Finance Authority
CFR Civic Facility Revenue
CRR Cultural Resources Revenue
CS Credit Support
DAR Dormitory Authority Revenue
DWP Department of Water & Power
DWR Department of Water Resources
EDR Economic Development Revenue
EEIR Educational Equipment & Improvement Revenue
EFAR Educational Facilities Authority Revenue
EFC Environmental Facilities Corporation
EIERA Environmental Improvement & Energy
Resource Authority
EIR Environment Improvement Revenue
ELR Educational Loan Revenue
ERDA Energy Research & Development Authority
FAR Finance Authority Revenue
FAGR Finance Agency Revenue
FGIC Financial Guaranty Insurance Corporation
GAR General Authority Revenue
GFR General Fund Revenue
GO General Obligation
HEA Higher Education Authority
HEL Higher Education Loan
HF Housing Finance
HFA Housing Finance Authority
HFF Health Facilities Financing
HFFAR Health Facilities Financing Authority Revenue
HFR Health Facilities Revenue
HMFC Housing & Mortgage Finance Corporation
HR Hospital Revenue
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue
JDA Job Development Authority
JSA Joint Sanitation Authority
LC Letter of Credit
LGAC Local Government Assistance Corporation
MBIA Municipal Bond Investors Assurance Corporation
MCF Medical Care Facilities
MFA Municipal Finance Authority
MUD Municipal Utility District
MWFASSR Municipal Water Finance Authority Sewer System
Revenue
PAR Power Authority Revenue
PCFA Pollution Control Financing Authority
PCC Pollution Control Corporation
PCR Pollution Control Revenue
PPR Public Power Revenue
PSR Power Supply Revenue
RAW Revenue Anticipation Warrant
RRR Resource Recovery Revenue
SCD Statewide Communities Development
SFR Special Facilities Revenue
SLMA Student Loan Marketing Association
SLR Student Loan Revenue
SWDR Solid Waste Disposal Revenue
SWFR Solid Waste Facilities Revenue
STR Sales Tax Revenue
TA Transportation Authority
TAN Tax Anticipation Note
TRAN Tax Revenue Anticipation Note
WD Water District
13
<PAGE>
November 30, 1995
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<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-$1,678,187,666,
$114,911,861, $114,491,607,
$75,038,587 and $52,897,750,
respectively)........................ $1,678,187,666 $114,911,861 $114,491,607 $ 75,038,587 $52,897,750
Cash................................. 505,758 123,350 173,667 237,882 97,605
Receivable for investments sold...... -- -- 1,100,090 100,292 --
Receivable for capital stock sold.... 31,031,767 396,891 2,448,150 523,397 376,568
Interest receivable.................. 1,045,635 95,405 1,004,640 541,166 484,815
Deferred organization and
prepaid expenses..................... 62,165 5,564 2,988 2,274 2,577
-------------- ------------ ------------ ------------ -----------
Total Assets......................... 1,710,832,991 115,533,071 119,221,142 76,443,598 53,859,315
-------------- ------------ ------------ ------------ -----------
Liabilities
Payable for investments purchased.... -- -- 250,739 -- 504,230
Payable for capital stock redeemed... 35,848,885 6,700,816 2,812,594 401,356 913,553
Investment advisory fee payable...... 37,708 5,185 3,203 2,347 1,772
Distribution assistance fee payable.. 22,882 1,564 1,605 1,040 726
Shareholder services fee payable..... 75,554 4,468 5,645 3,771 2,316
Administrative services fee payable.. 4,576 313 321 208 145
Dividends payable.................... 3,131,422 206,292 140,284 92,337 65,064
Other payables and accrued
expenses............................. 582,603 39,403 42,178 30,452 28,384
-------------- ------------ ------------ ------------ -----------
Total Liabilities.................... 39,703,630 6,958,041 3,256,569 531,511 1,516,190
-------------- ------------ ------------ ------------ -----------
Net Assets
Par value ($.0001 per share,
10 billion shares authorized
for each portfolio).................. 167,117 10,860 11,606 7,593 5,237
Paid-in-surplus...................... 1,670,962,176 108,563,470 116,045,062 75,926,044 52,361,689
Accumulated undistributed net
realized gain (loss)
on investments....................... 68 700 (92,095) (21,550) (23,801)
-------------- ------------ ------------ ------------ -----------
Total Net Assets..................... $1,671,129,361 $108,575,030 $115,964,573 $75,912,087 $52,343,125
============== ============ ============ ============ ============
Fund shares outstanding.............. 1,671,168,463 108,596,523 116,057,333 75,933,638 52,366,926
-------------- ------------ ------------- ------------ ------------
Net asset value, offering and
redemption price per share $1.00..... $1.00 $1.00 $1.00 $1.00 $1.00
============== ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
Year ended November 30, 1995
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<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................................... $95,791,581 $6,569,203 $5,063,373 $2,471,976 $1,997,808
----------- ---------- ---------- ---------- ----------
Operating Expenses
Investment advisory fee (note 2a).......... 6,577,551 549,734 619,378 319,052 261,993
Distribution assistance fee (note 2b)...... 4,231,722 296,807 336,589 169,188 139,776
Transfer agent and dividend
disbursement agent fees................... 2,405,213 100,539 97,057 24,360 30,189
Administrative services fee................ 551,441 36,391 42,996 22,243 17,419
Registration fees.......................... 464,679 33,314 78,474 5,192 1,675
Shareholder services fee................... 295,993 21,429 24,182 12,678 12,895
Reports and notices to shareholders........ 145,964 5,998 7,762 4,609 4,084
Custodian fees............................. 109,932 40,946 39,797 3,657 8,310
Auditing, consulting and tax return
preparation fees.......................... 40,884 17,533 17,233 17,555 17,534
Legal fees................................. 21,563 5,661 3,255 2,547 2,403
Directors' fees and expenses............... 18,090 18,090 18,090 17,277 17,277
Miscellaneous.............................. 133,160 9,898 10,339 11,003 12,422
----------- ---------- ---------- ---------- ----------
Total operating expenses................. 14,996,192 1,136,340 1,295,152 609,361 525,977
Less: Investment advisory fee
waived (note 2a)........................ --- (20,074) (112,617) (83,794) (110,219)
----------- ---------- ---------- ---------- ----------
Net operating expenses................... 14,996,192 1,116,266 1,182,535 525,567 415,758
----------- ---------- ---------- ---------- ----------
Net investment income.................... 80,795,389 5,452,937 3,880,838 1,946,409 1,582,050
----------- ---------- ---------- ---------- ----------
Net realized gain (loss)
on security transactions
(note 2e)............................... 68 700 (33,497) (618,234) (19,669)
----------- ---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations................. $80,795,457 $5,453,637 $3,847,341 $1,328,175 $1,562,381
=========== ========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Primary Portfolio Government Portfolio
Year ended November 30, Year ended November 30,
------------------------------------ -------------------------------
1995 1994 1995 1994
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations
Net investment income.................... $ 80,795,389 $ 47,757,069 $ 5,452,937 $ 3,944,731
Net realized gain (loss)
on security transactions................ 68 482 700 494
--------------- --------------- ------------- -------------
Net increase in net assets
resulting from operations............... 80,795,457 47,757,551 5,453,637 3,945,225
--------------- --------------- ------------- -------------
Dividends and Distributions
to Shareholders
Net investment income.................... (80,795,389) (47,757,069) (5,452,937) (3,944,731)
From other sources....................... -- (22,925) -- (19,562)
Net realized gains....................... (482) (519) (494) --
--------------- --------------- ------------- -------------
Total dividends and
distributions to
shareholders.......................... (80,795,871) (47,780,513) (5,453,431) (3,964,293)
--------------- --------------- ------------- -------------
Fund Share Transactions
Net increase (decrease) in
net assets derived from
fund share transactions................. 217,361,004 39,885,122 (4,642,930) (14,644,277)
--------------- --------------- ------------- -------------
Increase due to voluntary capital
contribution by adviser (note 2e)..... -- -- -- --
--------------- --------------- ------------- -------------
Total increase (decrease) in
net assets............................ 217,360,590 39,862,160 (4,642,724) (14,663,345)
Net Assets
Beginning of year........................ 1,453,768,771 1,413,906,611 113,217,754 127,881,099
--------------- --------------- ------------- -------------
End of year.............................. $ 1,671,129,361 $ 1,453,768,771 $ 108,575,030 $ 113,217,754
=============== =============== ============= =============
Shares Issued and Redeemed
(all at $1.00 per share)
Issued.................................. 8,545,299,477 7,161,861,617 561,063,508 532,176,675
Issued in reinvestment of
dividends and distributions............ 77,748,816 44,984,290 5,335,254 3,749,627
Redeemed................................ (8,405,687,289) (7,166,960,785) (571,041,692) (550,570,579)
--------------- --------------- ------------- -------------
Net increase (decrease)............... 217,361,004 39,885,122 (4,642,930) (14,644,277)
=============== =============== ============= =============
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
General Municipal Portfolio California Municipal Portfolio New York Municipal Portfolio
Year ended November 30, Year ended November 30, Year Ended November 30,
- --------------------------- ----------------------------- ----------------------------
1995 1994 1995 1994 1995 1994
- ------------ ------------ ------------ ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
$ 3,880,838 $ 2,339,750 $ 1,946,409 $ 1,213,588 $ 1,582,050 $ 950,379
(33,497) 541 (618,234) 1,178 (19,669) 1,510
- ------------ ------------ ------------ ------------- ------------- ------------
3,847,341 2,340,291 1,328,175 1,214,766 1,562,381 951,889
- ------------ ------------ ------------ ------------- ------------- ------------
(3,880,838) (2,339,750) (1,946,409) (1,213,588) (1,582,050) (950,379)
-- -- -- -- -- --
-- -- -- -- -- --
- ------------ ------------ ------------ ------------- ------------- ------------
(3,880,838) (2,339,750) (1,946,409) (1,213,588) (1,582,050) 950,379
- ------------ ------------ ------------ ------------- ------------- ------------
7,256,685 (931,784) 14,607,520 (1,019,116) 4,385,876 5,739,456
- ------------ ------------ ------------ ------------- ------------- ------------
-- -- 604,407 -- -- --
- ------------ ------------ ------------ ------------- ------------- ------------
7,223,188 (931,243) 14,593,693 (1,017,938) 4,366,207 5,740,966
108,741,385 109,672,628 61,318,394 62,336,332 47,976,918 42,235,952
- ------------ ------------ ------------ ------------- ------------- ------------
$115,964,573 $108,741,385 $ 75,912,087 $ 61,318,394 $ 52,343,125 $ 47,976,918
============ ============ ============ ============= ============= ============
667,188,766 492,775,657 296,613,031 248,723,997 303,848,325 258,534,314
3,738,051 2,232,370 1,848,545 1,143,418 1,487,169 888,182
(663,670,132) (495,939,811) (283,854,056) (250,886,531) (300,949,618) (253,683,040)
- ------------ ------------ ------------ ------------- ------------- ------------
7,256,685 (931,784) 14,607,520 (1,019,116) 4,385,876 5,739,456
============ ============ ============ ============= ============= ============
</TABLE>
17
<PAGE>
November 30, 1995
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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. OpCap Advisors (the
"Adviser") and OCC 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.
18
<PAGE>
(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 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 year ended November 30, 1995,
the Adviser waived $20,074, $112,617, $83,794 and $110,219 in investment
advisory fees for Government, 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 year ended November 30,1995, 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
year ended November 30, 1995, such reimbursements were: Primary $281,524;
Government $18,693; General $22,314; California $12,642; and New York $9,181.
(d) Each Portfolio pays Oppenheimer & Co., Inc. and certain other
broker-dealers for administrative services performed for shareholder accounts;
for the year ended November 30, 1995, payments to Oppenheimer & Co., Inc. were:
Primary $486,997; Government $30,484; General $37,882; California $22,006; and
New York $15,049.
(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 recognized a realized loss on the sale and received a capital
contribution of an equal amount from the Adviser. For tax purposes, the capital
contribution was applied against the realized losses for the year ended
November 30, 1995. Accordingly, such amount has been reclassified from
paid-in-surplus to accumulated undistributed net realized loss on investments
in the Statement of Assets and Liabilities.
3. Purchases and Sales of Securities
For the year ended November 30, 1995, purchases and sales/maturities of
investment securities were: Primary $9,736,213,188 and $9,600,638,852,
respectively; Government $4,638,483,933 and $4,640,660,354, respectively;
General $559,109,333 and $554,830,890, respectively; California $302,827,251
and $286,833,293, respectively; and New York $253,352,155 and $246,642,194,
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 November 30, 1995, such concentrations were
Banking--34.4%, Finance--14.9%, Sovereign--11.5%, Brokerage--10.2%,
Automotive--7.6% and
19
<PAGE>
November 30, 1995
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Health/Hospital--6.6%. 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.
5. Capital Loss Carryforward
At November 30, 1995, accumulated net realized capital loss carryforwards
available as a reduction against future net realized capital gains for Federal
income tax puposes were: General--$92,095 of which $13,684 will expire in 1997,
$29,512 will expire in 1998, $1,302 will expire in 1999, $13,801 will expire in
2000, $299 will expire in 2001 and $33,497 will expire in 2003; California--
$21,550 of which $730 will expire in 1999, $5,856 will expire in 2000, $1,137
will expire in 2001 and $13,827 will expire in 2003; and New York--$23,801 of
which $3,198 will expire in 2000, $934 will expire in 2001 and $19,669 will
expire in 2003.
20
<PAGE>
Financial Highlights (For a share outstanding throughout each year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO
INCOME FROM DIVIDENDS AVERAGE
INVESTMENT OPERATIONS AND DISTRIBUTIONS NET ASSETS
---------------------------------- -------------------------------- --------------------
Divi- Distri-
dends to butions to
to Share- Distri- Share- Net
Net Asset Net Realized holders butions to holders Asset Net Assets,
Value, Net Gain/(Loss) Total from from Net holders from Net Value, End of Net Net
Beginning Investment on Security Investment Investment from Other Realized End of Total Year Operating Investment
of Year Income Transactions Operations Income Sources Gains Year Return* (millions) Expenses Income
--------- ---------- ------------ ---------- ---------- ---------- ---------- -------- ------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Primary Portfolio
Year
ended
November
30,
1995 $1.00 $0.051 $0.000 (1) $0.051 ($0.051) -- ($0.000)(1) $1.00 5.19% $1,671.1 0.94%(2) 5.07%(2)
1994 1.00 0.032 0.000 (1) 0.032 (0.032) ($0.000)(1) (0.000)(1) 1.00 3.26% 1,453.8 0.91% 3.21%
1993 1.00 0.024 0.000 (1) 0.024 (0.024) (0.000)(1) (0.000)(1) 1.00 2.44% 1,413.9 0.90% 2.41%
1992 1.00 0.033 0.000 (1) 0.033 (0.033) -- (0.000)(1) 1.00 3.38% 1,168.3 0.88% 3.34%
1991 1.00 0.057 (0.000)(1) 0.057 (0.057) -- -- 1.00 5.89% 1,249.0 0.86% 5.74%
</TABLE>
(1) Less than $.0005 per share.
(2) Average net assets for the year ended November 30, 1995 were
$1,594,387,722.
<TABLE>
<CAPTION>
Government Portfolio
Year
ended
November
30,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 $1.00 $0.049(2) $0.000(1) $0.049 ($0.049) -- ($0.000)(1) $1.00 5.02% $108.6 1.00%(2,3)4.91%(2,3)
1994 1.00 0.031(2) 0.000(1) 0.031 (0.031) ($0.000)(1) -- 1.00 3.12% 113.2 0.95%(2) 3.08%(2
1993 1.00 0.022 -- 0.022 (0.022) (0.000)(1) -- 1.00 2.26% 127.9 1.00% 2.24%
1992 1.00 0.032(2) 0.000(1) 0.032 (0.032) -- (0.000)(1) 1.00 3.24% 131.7 0.93%(2) 3.23%(2)
1991 1.00 0.055(2) -- 0.055 (0.055) -- -- 1.00 5.69% 142.2 0.84%(2) 5.62%(2)
</TABLE>
(1) Less than $.0005 per share.
(2) Reflects a waiver of $.0002, $.0002, $.0002 and $.001 per share,
respectively, in advisory fees in effect during each year. Had such waivers
not occurred, the ratio of net operating expenses would have been 1.02%,
0.97%, 0.94% and 0.92%, respectively, and the ratio of net investment income
would have been 4.89%, 3.06%, 3.22% and 5.54%, respectively.
(3) Average net assets for the year ended November 30, 1995 were $111,066,046.
- ---------------
* Assumes reinvestment of all dividends and distributions.
21
<PAGE>
Financial Highlights (For a share outstanding throughout each period (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO
General Municipal Portfolio
Year ended November 30,
INCOME FROM AVERAGE
INVESTMENT OPERATIONS NET ASSETS
------------------------------------ --------------------
Dividends to
Net Asset Net Realized Shareholders Net Asset Net Assets,
Value, Net Gain/(Loss) Total from from Net Capital Value, End of Net Net
Beginning Investment on Security Investment Investment Contribution End of Total Year Operating Investment
of Year Income Transactions Operations Income by Advisor Period Return* (millions) Expenses Income
--------- ---------- ------------- ---------- ------------ ------------ --------- ------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 $1.00 $0.031(1) ($0.000)(2) $0.031 ($0.031) -- $1.00 3.11% $116.0 0.93%(1,3)3.07%(1,3)
1994 1.00 0.020(1) 0.000 (2) 0.020 (0.020) -- 1.00 2.04% 108.7 0.90%(1) 2.01%(1)
1993 1.00 0.017(1) (0.000)(2) 0.017 (0.017) -- 1.00 1.74% 109.7 0.98%(1) 1.73%(1)
1992 1.00 0.026(1) (0.000)(2) 0.026 (0.026) -- 1.00 2.66% 112.9 0.90%(1) 2.62%(1)
1991 1.00 0.042(1) 0.000 (2) 0.042 (0.042) -- 1.00 4.24% 100.1 0.88%(1) 4.20%(1)
</TABLE>
(1) Reflects a waiver of $.001, $.001, $.0003, $.001 and $.001 per share,
respectively, in advisory fees in effect during each year. Had such waivers not
occurred, the ratio of net operating expenses would have been 1.02%, 1.01%,
1.01%, 1.00% and 0.98%, respectively and the ratio of net investment income
would have been 2.98%, 1.90%, 1.70%, 2.52% and 4.10%, respectively.
(2) Less than $.0005 per share.
(3) Average net assets for the year ended November 30, 1995 were
$126,528,413.
<TABLE>
<CAPTION>
California Municipal Portfolio
Year ended November 30,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 $1.00 $0.031(1) ($0.008) $0.023 ($0.031) $0.008 $1.00 3.10% $75.9 0.82%(1,2) 3.05%(1,2)
1994 1.00 0.020(1) 0.000(3) 0.020 (0.020) -- 1.00 1.99% 61.3 0.85%(1) 1.99%(1)
1993 1.00 0.017(1) (0.000)(3) 0.017 (0.017) -- 1.00 1.76% 62.3 0.85%(1) 1.75%(1)
1992 1.00 0.025(1) (0.000)(3) 0.025 (0.025) -- 1.00 2.57% 61.2 0.60%(1) 2.51%(1)
March 20, 1991 (4)
to November
30, 1991 1.00 0.026(1) (0.000)(3) 0.026 (0.026) -- 1.00 4.24%(5) 45.4 0.54%(1,5) 3.75%(1,5)
</TABLE>
(1) Reflects a 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 0.95%, 0.97%, 0.98%, 1.02% and 1.08%, respectively and the ratio of net
investment income would have been 2.92%, 1.87%, 1.62%, 2.09% and 3.21%,
respectively.
(2) Average net assets for the year ended November 30, 1995 were $63,810,311.
(3) Less than $.0005 per share.
(4) Commencement of operations.
(5) Annualized.
<TABLE>
<CAPTION>
New York Municipal Portfolio
Year ended November 30,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 $1.00 $0.030(1) ($0.000)(2) $0.030 ($0.030) -- $1.00 3.07% $52.3 0.79%(1,3) 3.02%(1,3)
1994 1.00 0.019(1) 0.000 (2) 0.019 (0.019) -- 1.00 1.92% 48.0 0.82%(1) 1.90%(1)
1993 1.00 0.016(1) (0.000)(2) 0.016 (0.016) -- 1.00 1.66% 42.2 0.79%(1) 1.64%(1)
1992 1.00 0.025(1) (0.000)(2) 0.025 (0.025) -- 1.00 2.56% 32.9 0.74%(1) 2.43%(1)
April 10, 1991 (4) to
November 30, 1991 1.00 0.024(1) (0.000)(2) 0.024 (0.024) -- 1.00 4.29%(5) 18.4 0.56%(1,5) 3.80%(1,5)
</TABLE>
(1) Reflects a waiver of $.002, $.002, $.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 1.00%, 1.01%, 1.03%, 1.19% and 1.43%, respectively and the ratio of net
investment income would have been 2.81%, 1.71%, 1.40%, 1.98% and 2.93%,
respectively.
(2) Less than $.0005 per share.
(3) Average net assets for the year ended November 30, 1995 were $52,398,588.
(4) Commencement of operations.
(5) Annualized.
* Assumes reinvestment of all dividends and distributions.
22
<PAGE>
Report of Independent Accountants
To the Shareholders and Board of Directors
of Quest Cash Reserves, Inc.
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the Primary
Portfolio, the Government Portfolio, the General Municipal Portfolio, the
California Municipal Portfolio and the New York Municipal Portfolio
(constituting Quest Cash Reserves, Inc., hereafter referred to as the
"Portfolio") at November 30, 1995, the results of each of their operations for
the year then ended, the changes in each of their net assets for each of the
two years in the period then ended, and the financial highlights for each of
the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the
Portfolio's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1995 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
January 19, 1996
23
<PAGE>
QUEST CASH RESERVES
Trustees 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
Sheldon Siegel Treasurer
Deborah Kaback Secretary
Leslie Klein Assistant Treasurer
Maria Camacho Assistant Secretary
Thomas E. Duggan Assistant Secretary
Investment Adviser
OpCap Advisors
One World Financial Center
New York, NY 10281
Distributor
OCC 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
Tax Information 3
Schedules of Investments 4
Statements of Assets and Liabilities 14
Statements of Operations 15
Statements of Changes in Net Assets 16
Notes to Financial Statements 18
Financial Highlights 21
Report of Independent Accountants 23
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus.
QUEST CASH RESERVES
QUEST
PRIMARY PORTFOLIO
GOVERNMENT PORTFOLIO
GENERAL MUNICIPAL PORTFOLIO
CALIFORNIA MUNICIPAL PORTFOLIO
NEW YORK MUNICIPAL PORTFOLIO
Annual Report
November 30, 1995
Managed by
OpCap Advisors
24
