<PAGE> 1
TAX FREE MONEY PORTFOLIO 7
------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
===============================================================================================================
December 31, 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- ---------------------------------------------------------------------------------------------------------------
Investments, at Value $118,664,248
- ---------------------------------------------------------------------------------------------------------------
Cash 55,321
- ---------------------------------------------------------------------------------------------------------------
Interest Receivable 1,012,415
- ---------------------------------------------------------------------------------------------------------------
Prepaid Expenses and Other 789
- ---------------------------------------------------------------------------------------------------------------
Total Assets 119,732,773
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------------
Due to Bankers Trust 5,899
- ---------------------------------------------------------------------------------------------------------------
Accrued Expenses and Other 24,075
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities 29,974
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS $119,702,799
===============================================================================================================
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Paid-in Capital $119,702,799
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS, DECEMBER 31, 1995 $119,702,799
===============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
===============================================================================================================
For the year ended December 31, 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
- ---------------------------------------------------------------------------------------------------------------
Interest $4,843,488
- ---------------------------------------------------------------------------------------------------------------
EXPENSES
- ---------------------------------------------------------------------------------------------------------------
Advisory $180,724
- ---------------------------------------------------------------------------------------------------------------
Administration and Services 60,241
- ---------------------------------------------------------------------------------------------------------------
Professional 25,996
- ---------------------------------------------------------------------------------------------------------------
Trustees 1,918
- ---------------------------------------------------------------------------------------------------------------
Miscellaneous 3,627
- ---------------------------------------------------------------------------------------------------------------
Total Expenses 272,506
- ---------------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (31,541) 240,965
- ---------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 4,602,523
- ---------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS FROM SECURITIES TRANSACTIONS (25,049)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $4,577,474
===============================================================================================================
</TABLE>
See Notes to Financial Statements on Page 15
<PAGE> 2
TAX FREE MONEY PORTFOLIO 8
------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
===============================================================================================================
For the For the
year ended year ended
December December
31, 1995 31, 1994
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
- ---------------------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------------------
Net Investment Income $ 4,602,523 $ 3,366,308
- ---------------------------------------------------------------------------------------------------------------
Net Realized Loss from Securities Transactions (25,049) (12,897)
- ---------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 4,577,474 3,353,411
- ---------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------------
Proceeds from Capital Invested 802,388,131 642,000,791
- ---------------------------------------------------------------------------------------------------------------
Value of Capital Withdrawn (797,670,460) (646,550,579)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Capital Transactions 4,717,671 (4,549,788)
- ---------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 9,295,145 (1,196,377)
===============================================================================================================
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Beginning of Year 110,407,654 111,604,031
- ---------------------------------------------------------------------------------------------------------------
End of Year $ 119,702,799 $ 110,407,654
===============================================================================================================
</TABLE>
FINANCIAL HIGHLIGHTS
================================================================================
Contained below are selected ratios and supplemental data for each of the
periods presented for the Tax Free Money Portfolio.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
For the period
February 19, 1991
For the year ended December 31, (Commencement
----------------------------------------- of Operations) to
1995 1994 1993 1992 December 31, 1991
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RATIOS AND SUPPLEMENTAL DATA
Ratio of Net Investment Income
to Average Net Assets 3.82% 2.76% 2.50% 3.18% 4.59%*
Ratio of Expenses to Average Net Assets 0.20% 0.20% 0.20% 0.22% 0.25%*
Decrease Reflected in Above Ratio of
Expenses to Average Net Assets Due to
Absorption of Expenses by Bankers Trust 0.03% 0.03% 0.02% 0.02% 0.02%*
Net Assets, End of Period (000's omitted) $119,703 $110,408 $111,604 $157,634 $143,942
</TABLE>
* Annualized
See Notes to Financial Statements on Page 15
<PAGE> 3
TAX FREE MONEY PORTFOLIO 9
------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
December 31, 1995
<TABLE>
<CAPTION>
RATING (c)
- ------------------- PRINCIPAL
S&P / MOODY / FITCH AMOUNT DESCRIPTION (b) VALUE
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
ARIZONA - 3.43%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ $2,000,000 Chandler, Arizona, I.D.A., (LOC: National Westminster),
Variable Rate Monthly Demand Note, 4.25%, 12/15/09 (a) $2,000,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ P1 2,100,000 Pinal County, Arizona, I.D.A., P.C.R., (LOC: National Westminster),
Variable Rate Daily Demand Note, 5.95%, 12/1/09 (a) 2,100,000
- ------------------------------------------------------------------------------------------------------------------------------
4,100,000
==============================================================================================================================
CALIFORNIA - 6.26%
- ------------------------------------------------------------------------------------------------------------------------------
SP1 MIG1 F1+ 4,840,000 California State Warrants, RAWS, 5.75%, 4/25/96 4,868,573
- ------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 1,415,000 California State Warrants, RAWS, (FGIC Insured), 5.75%, 4/25/96 1,423,475
- ------------------------------------------------------------------------------------------------------------------------------
SP1 MIG1 F1+ 1,200,000 Los Angeles County TRANS, (LOC: Bank of America, Credit
Suisse, Morgan Guaranty, Swiss Bank, Union Bank of Switzerland,
West Deutsche Bank), 4.50%, 7/1/96 1,204,020
- ------------------------------------------------------------------------------------------------------------------------------
7,496,068
==============================================================================================================================
COLORADO - 0.85%
- ------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,010,000 Moffat County, Colorado, P.C.R., Tri-State Generation Project,
(AMBAC Insured), 4.125%, 11/1/96 1,014,266
==============================================================================================================================
CONNECTICUT - 2.51%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 F1+ 3,000,000 Connecticut Unemployment Compensation Revenue Bonds,
(FGIC Insured) 3.90%, 11/15/01, Mandatory Put 7/1/96 3,000,000
==============================================================================================================================
FLORIDA - 8.22%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 200,000 Dade County, Florida, Housing Finance Authority, Bermuda Villas,
Series K, (LOC: John Hancock Insurance), Variable Rate Weekly
Demand Note, 5.40%, 2/1/05 (a) 200,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 1,200,000 Dade County, Florida, Housing Finance Authority, Cutler Club
Apartments, Series J, (LOC: John Hancock Insurance), Variable
Rate Weekly Demand Note, 5.40%, 2/1/05 (a) 1,200,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 3,000,000 Dade County, Florida, Housing Finance Authority, Nob Hill
Project, Series 1, (LOC: John Hancock Insurance), Variable
Rate Weekly Demand Note, 5.40%, 8/1/05 (a) 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------
A1 300,000 Florida Housing Finance Agency, (LOC: Wells Fargo),
Variable Rate Monthly Demand Note, 3.85%, 4/1/07 (a) 300,000
- ------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,100,000 Florida Housing Finance Agency, Lakes of Northdale, (MBIA
Insured), Variable Rate Monthly Demand Note, 3.75%, 6/1/07 (a) 1,100,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 3,000,000 Florida Housing Finance Agency, River Oaks, (LOC: Citibank),
Variable Rate Weekly Demand Note, 5.05%, 12/1/07 (a) 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,000,000 Florida State Sunshine Skyway Revenue, G.O., 7.30%, 6/1/05,
Prerefunded 6/1/96 @ 102 1,034,141
- ------------------------------------------------------------------------------------------------------------------------------
9,834,141
==============================================================================================================================
HAWAII - 3.85%
- ------------------------------------------------------------------------------------------------------------------------------
AA Aaa 1,500,000 Hawaii State, G.O., Series BJ, 6.75%, 12/1/97,
Prerefunded 12/1/96 @ 101.50 1,561,744
- ------------------------------------------------------------------------------------------------------------------------------
AA Aaa 1,000,000 Honolulu, Hawaii City and County, G.O., 6.90%, 10/1/96 1,025,171
- ------------------------------------------------------------------------------------------------------------------------------
AA Aaa 2,000,000 Honolulu, Hawaii City and County, G.O., Series A, 5.80%, 8/1/96 2,023,463
- ------------------------------------------------------------------------------------------------------------------------------
4,610,378
==============================================================================================================================
</TABLE>
See Notes to Financial Statements on Page 15
<PAGE> 4
TAX FREE MONEY PORTFOLIO 10
------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
December 31, 1995
<TABLE>
<CAPTION>
RATING (c)
- ------------------- PRINCIPAL
S&P / MOODY / FITCH AMOUNT DESCRIPTION (b) VALUE
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
ILLINOIS - 2.00%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ $1,300,000 Burbank, Illinois, I.D.R., (LOC: Canadian Imperial Bank),
Variable Rate Monthly Demand Note, 4.00%, 9/15/24 (a) $1,300,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 1,100,000 Chicago, Illinois, G.O., Tender Notes, (LOC: Morgan Guaranty),
3.75%, 10/31/96, Mandatory Put 5/1/96 1,100,000
- ------------------------------------------------------------------------------------------------------------------------------
2,400,000
==============================================================================================================================
IOWA - 5.93%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 2,700,000 Des Moines, Iowa, C.D.A., East Grand Office Park Project,
(Guaranteed by Principal Financial Group), Variable Rate Monthly
Demand Note, 4.00%, 4/1/15 (a) 2,700,000
- ------------------------------------------------------------------------------------------------------------------------------
VMIG1 1,500,000 Osceola, Iowa, Babson Brothers Company Project, (LOC: Bank of
New York), Variable Rate Weekly Demand Note, 5.35%, 12/1/96 (a) 1,500,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 2,895,000 Urbandale, Iowa, Meredith Drive Associates, (Guaranteed by
Principal Financial Group), Variable Rate Monthly Demand Note,
4.00%, 11/1/15 (a) 2,895,000
- ------------------------------------------------------------------------------------------------------------------------------
7,095,000
==============================================================================================================================
KANSAS - 2.26%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 1,400,000 Fairway, Kansas, I.D.R., J.C. Nichols Project, (Guaranteed by
Principal Mutual Insurance), Variable Rate Monthly Demand
Note, 4.00%, 11/1/14 (a) 1,400,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 1,300,000 Prairie Village, Kansas, Multi-Family Revenue, J.C. Nichols Project,
(Guaranteed by Bankers Life), Variable Rate Monthly Demand
Note, 4.00%, 12/1/15 (a) 1,300,000
- ------------------------------------------------------------------------------------------------------------------------------
2,700,000
==============================================================================================================================
LOUISIANA - 0.84%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 1,000,000 Jefferson Parish, Louisiana Hospital Revenue, West Jefferson
Medical Center, (LOC: Citibank), Variable Rate Weekly Demand
Note, 5.40%, 1/1/26 (a) 1,000,000
==============================================================================================================================
MARYLAND - 1.00%
- ------------------------------------------------------------------------------------------------------------------------------
SP1 P1 1,200,000 Montgomery County, Tax-Exempt Commercial Paper, (LOC:
Union Bank of Switzerland), 3.70%, 1/9/96 1,200,000
==============================================================================================================================
MISSOURI - 2.92%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 2,200,000 Kansas City, Missouri, I.D.A., Coach House Project, Variable
Rate Monthly Demand Note, 4.00%, 12/1/15 (a) 2,200,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 1,300,000 St. Louis, Missouri, I.D.A., Cedar Run Apartments Project, (LOC:
John Hancock Insurance), Variable Rate Weekly Demand Note,
5.40%, 2/1/07 (a) 1,300,000
- ------------------------------------------------------------------------------------------------------------------------------
3,500,000
==============================================================================================================================
NEW HAMPSHIRE - 0.25%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 300,000 New Hampshire State, I.D.A., (LOC: Union Bank of Switzerland),
Variable Rate Monthly Demand Note, 3.75%, 7/1/13 (a) 300,000
==============================================================================================================================
</TABLE>
See Notes to Financial Statements on Page 15
<PAGE> 5
TAX FREE MONEY PORTFOLIO 11
------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
December 31, 1995
<TABLE>
<CAPTION>
RATING (c)
- ------------------- PRINCIPAL
S&P / MOODY / FITCH AMOUNT DESCRIPTION (b) VALUE
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
NEW YORK - 36.19%
- ------------------------------------------------------------------------------------------------------------------------------
A1 VMIG1 $2,700,000 New York City, New York, G.O., (LOC: Chemical Bank),
Variable Rate Daily Demand Note, 4.75%, 8/1/21 (a) $2,700,000
- ------------------------------------------------------------------------------------------------------------------------------
A1 VMIG1 500,000 New York City, New York, G.O., (LOC: Chemical Bank),
Variable Rate Daily Demand Note, 5.95%, 8/1/22 (a) 500,000
- ------------------------------------------------------------------------------------------------------------------------------
A1 VMIG1 400,000 New York City, New York, G.O., (LOC: Chemical Bank),
Variable Rate Daily Demand Note, 5.95%, 8/1/23 (a) 400,000
- ------------------------------------------------------------------------------------------------------------------------------
A1 VMIG1 1,800,000 New York City, New York, G.O., (LOC: Dai-Ichi Kangyo),
Variable Rate Daily Demand Note, 5.05%, 8/15/18 (a) 1,800,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 A- 2,600,000 New York City, New York, G.O., (LOC: Dai-Ichi Kangyo),
Variable Rate Daily Demand Note, 5.05%, 8/15/19 (a) 2,600,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 A- 1,200,000 New York City, New York, G.O., (LOC: Dai-Ichi Kangyo),
Variable Rate Daily Demand Note, 5.05%, 8/15/20 (a) 1,200,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 800,000 New York City, New York, G.O., (LOC: Kredietbank),
Variable Rate Daily Demand Note, 5.90%, 8/1/15 (a) 800,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 1,850,000 New York City, New York, G.O., (LOC: Kredietbank),
Variable Rate Daily Demand Note, 5.90%, 8/1/16 (a) 1,850,000
- ------------------------------------------------------------------------------------------------------------------------------
A1 VMIG1 3,200,000 New York City, New York, G.O., (LOC: Sanwa Bank),
Variable Rate Daily Demand Note, 5.05%, 8/15/17 (a) 3,200,000
- ------------------------------------------------------------------------------------------------------------------------------
A1 VMIG1 2,800,000 New York City, New York, G.O., (LOC: Sanwa Bank,)
Variable Rate Daily Demand Note, 5.05%, 8/15/18 (a) 2,800,000
- ------------------------------------------------------------------------------------------------------------------------------
A1 VMIG1 6,565,000 New York City, New York, G.O., (LOC: Sumitomo Bank),
Variable Rate Daily Demand Note, 6.10%, 8/1/16 (a) 6,565,000
- ------------------------------------------------------------------------------------------------------------------------------
A1 VMIG1 4,200,000 New York City, New York, G.O., (LOC: Sumitomo Bank),
Variable Rate Daily Demand Note, 6.10%, 8/1/17 (a) 4,200,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 1,800,000 New York City, New York, G.O., (LOC: Union Bank of Switzerland),
Variable Rate Daily Demand Note, 5.00%, 8/15/21 (a) 1,800,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 4,400,000 New York City, New York, G.O., (MBIA Insured), Variable
Rate Daily Demand Note, 5.90%, 8/15/23 (a) 4,400,000
- ------------------------------------------------------------------------------------------------------------------------------
SP1+ MIG1 F1+ 3,000,000 New York City, New York, RANS, Series A, 4.50%, 4/11/96 3,006,048
- ------------------------------------------------------------------------------------------------------------------------------
SP1+ MIG1 F1+ 2,000,000 New York City, New York, TANS, Series A, 4.50%, 2/15/96 2,001,919
- ------------------------------------------------------------------------------------------------------------------------------
VMIG1 2,500,000 New York State Dormitory Authority Revenue Bonds, (LOC:
Banque Paribas), Variable Rate Daily Demand Note, 5.85%, 7/1/23 (a) 2,500,000
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 1,000,000 New York State Energy Research and Development Authority,
Niagara Mohawk Power, Series A, (LOC: Toronto Dominion),
5.50%, 7/1/15 (a) 1,000,000
- ------------------------------------------------------------------------------------------------------------------------------
43,322,967
==============================================================================================================================
NORTH CAROLINA - 1.67%
- ------------------------------------------------------------------------------------------------------------------------------
A1 P1 2,000,000 North Carolina Eastern Municipal Power, Tax Exempt Commercial
Paper, (LOC: Morgan Guaranty), 3.70%, 1/11/96 2,000,000
==============================================================================================================================
OHIO - 2.42%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 2,900,000 Ohio State Air Quality Development Authority, (LOC: J.P. Morgan),
Variable Rate Daily Demand Note, 5.50%, 12/1/15 (a) 2,900,000
==============================================================================================================================
</TABLE>
See Notes to Financial Statements on Page 15
<PAGE> 6
TAX FREE MONEY PORTFOLIO 12
------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
December 31, 1995
<TABLE>
<CAPTION>
RATING (c)
- ------------------- PRINCIPAL
S&P / MOODY / FITCH AMOUNT DESCRIPTION (b) VALUE
==============================================================================================================================
<S> <C> <C>
PENNSYLVANIA - 0.58%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ $ 700,000 Lehigh County, Pennsylvania, I.D.R., Allegheny Electric, (LOC:
Rabobank Nederland), Variable Rate Monthly Demand Note,
3.75%, 6/1/14 (a) $ 700,000
==============================================================================================================================
RHODE ISLAND - 4.28%
- ------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 3,000,000 Rhode Island Depositors Economic Protection, Series A,
(MBIA Insured), 7.25%, 8/1/21, Prefunded 8/1/96 @ 102 3,121,282
- ------------------------------------------------------------------------------------------------------------------------------
SP1+ MIG1 F1+ 2,000,000 Rhode Island State, TANS, (LOC: Union Bank of Switzerland),
4.50%, 6/28/96 2,008,272
- ------------------------------------------------------------------------------------------------------------------------------
5,129,554
==============================================================================================================================
TEXAS - 8.88%
- ------------------------------------------------------------------------------------------------------------------------------
VMIG1 750,000 Harris County, Texas, Health Facility Development-Tirr Project,
(LOC: Texas Commerce Bank), Variable Rate Daily Demand Note,
5.95%, 10/1/17 (a) 750,000
- ------------------------------------------------------------------------------------------------------------------------------
AA- Aa 1,400,000 Houston, Texas, G.O., 5.50%, 3/1/96 1,401,664
- ------------------------------------------------------------------------------------------------------------------------------
Aaa 2,000,000 Houston, Texas, G.O., 8.00%, 3/1/22, Prerefunded 3/1/96 @ 102 2,053,596
- ------------------------------------------------------------------------------------------------------------------------------
VMIG1 1,400,000 Texas Small Business, I.D.R., Texas Public Facilities, (LOC:
Credit Suisse), Variable Rate Weekly Demand Note, 5.20%, 7/1/26 (a) 1,400,000
- ------------------------------------------------------------------------------------------------------------------------------
SP1+ MIG1 F1+ 5,000,000 Texas State, TRANS, 4.75%, 8/30/96 5,021,614
- ------------------------------------------------------------------------------------------------------------------------------
10,626,874
==============================================================================================================================
VERMONT - 3.96%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ 4,735,000 Vermont I.D.A., Central Vermont Public Service, (LOC:
Toronto Dominion), Variable Rate Monthly Demand Note,
4.25%, 12/1/13 (a) 4,735,000
==============================================================================================================================
WASHINGTON - 0.83%
- ------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1 1,000,000 Chelan County, Washington, Public Utility District 1, (LOC:
Credit Suisse), Variable Rate Weekly Demand Note, 5.05%, 6/1/15 (a) 1,000,000
==============================================================================================================================
TOTAL INVESTMENTS
(Amortized Cost $118,664,248) 99.13% $118,664,248
- ------------------------------------------------------------------------------------------------------------------------------
Other Assets in Excess of Liabilities 0.87% 1,038,551
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $119,702,799
==============================================================================================================================
</TABLE>
(a) Securities payable on demand, secured by bank Letters of Credit or other
bank credit agreements. This interest rate, which will change periodically,
is based on bank prime rates or an index of market interest rates.
(b) The following abbreviations are used in portfolio descriptions:
AMBAC -- American Municipal Bond Assurance Corporation
C.D.A. -- Community Development Authority
FGIC -- Financial Guaranty Insurance Corporation
G.O. -- General Obligation
I.D.A. -- Industrial Development Authority
I.D.R. -- Industrial Development Revenue
LOC -- Secured by a Letter of Credit
MBIA -- Municipal Bond Investors Assurance Corporation
P.C.R. -- Pollution Control Revenue
RANS -- Revenue Anticipation Notes
RAWS -- Revenue Anticipation Warrants
TANS -- Tax Anticipation Notes
TRANS -- Tax Revenue Anticipation Notes
(c) Ratings were not audited by Coopers & Lybrand L.L.P.
See Notes to Financial Statements on Page 15
<PAGE> 7
TAX FREE MONEY PORTFOLIO 15
------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 1 - ORGANIZATION AND SIGNIFICANT
ACCOUNTING POLICIES
A. Organization
The Tax Free Money Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 (the "Act"), as amended, as an open-end
management investment company. The Portfolio was organized on March 26, 1990,
as an unincorporated trust under the laws of New York and commenced operations
on February 19, 1991. The Declaration of Trust permits the Board of Trustees
(the "Trustees") to issue beneficial interests in the Portfolio.
B. Security Valuation
Investments are valued at amortized cost, which has been determined by the
Trustees to represent fair value of the Portfolio's investments.
C. Security Transactions and Interest Income
Security transactions are accounted for on a trade date basis (date the order
to buy or sell is executed). Interest income is recorded on the accrual basis
and includes amortization of premium and discount on investments. Realized
gains and losses from securities transactions are recorded on the identified
cost basis.
D. Investment Income
The Portfolio determines its net investment income on each valuation day and
allocates all such income as well as any realized gains and losses from
security transactions pro rata among the investors in the Portfolio at the time
of such determination.
E. Federal Income Taxes
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code. Therefore, no federal income tax provision is required.
F. Other
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts in the financial statements.
NOTE 2 - FEES AND TRANSACTIONS WITH AFFILIATES
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of 0.05 of 1% of the Portfolio's average daily
net assets. For the year ended December 31, 1995, this fee aggregated $60,241.
The Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at the annual rate of 0.15 of 1% of the
Portfolio's average daily net assets. For the year ended December 31, 1995,
this fee aggregated $180,724.
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Portfolio, to the extent necessary, to limit all expenses to 0.20 of 1% of the
average daily net assets of the Portfolio. For the year ended December 31,
1995, expenses of the Portfolio have been reduced by $31,541.
Certain trustees and officers of the Portfolio are also directors, officers
and/or employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Portfolio. Similarly, none of the
Portfolio's officers received compensation from the Portfolio.
<PAGE> 8
TAX FREE MONEY PORTFOLIO 16
------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Trustees and Holders of Beneficial
Interest of the Tax Free Money Portfolio:
We have audited the accompanying statement of assets and liabilities of the Tax
Free Money Portfolio, including the schedule of portfolio investments, as of
December 31, 1995, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years in
the period then ended and for the period February 19, 1991 (commencement of
operations) to December 31, 1991. These financial statements and financial
highlights are the responsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Tax Free Money Portfolio as of December 31, 1995, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods referred to above, in conformity with generally accepted accounting
principles.
/s/ COOPERS & LYBRAND L.L.P.
Kansas City, Missouri
February 7, 1996
