US TREASURY RESERVES PORTFOLIO, N-30B-2, 1995-11-06

US TREASURY RESERVES PORTFOLIO
N-30B-2, 1995-11-06

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<PAGE>
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U.S. Treasury Reserves Portfolio
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PORTFOLIO OF INVESTMENTS August 31, 1995
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
ISSUER (000'S OMITTED) VALUE
- - --------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS--105.9%
U.S. TREASURY BILLS -- 99.8%
due 9/21/1995...................................... $ 34,009 $ 33,907,937
due 9/28/1995...................................... 120,485 119,998,077
due 10/05/1995..................................... 43,490 43,268,506
due 10/12/1995..................................... 70,000 69,568,703
due 10/19/1995..................................... 184,155 182,819,403
due 10/26/1995..................................... 115,605 114,650,087
due 11/02/1995..................................... 105,000 104,035,254
due 11/16/1995..................................... 110,110 108,838,950
due 12/14/1995..................................... 54,375 53,525,467
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830,612,384
------------

U.S. TREASURY NOTES -- 6.1%
9.25% due 1/15/1996................................ 50,000 50,623,642
------------
<S> <C> <C>
TOTAL INVESTMENTS, AT AMORTIZED COST .......... 105.9% 881,236,026
OTHER ASSETS, LESS LIABILITIES ................ (5.9) (48,977,649)
----- ------------
NET ASSETS .................................... 100.0% $832,258,377
===== ============
</TABLE>

See notes to financial statements
<PAGE>
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U.S. Treasury Reserves Portfolio
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STATEMENT OF ASSETS AND LIABILITIES August 31, 1995
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<TABLE>
<S> <C>
ASSETS:
Investments, at amortized cost and value (Note 1A)............................................ $881,236,026
Cash.......................................................................................... 54,248
Interest receivable........................................................................... 603,261
Deferred organization expenses (Note 1D)...................................................... 1,210
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Total assets................................................................................ 881,894,745
------------
LIABILITIES:
Payable for investments purchased............................................................. 49,545,333
Payable to affiliate-- investment advisory fee (Note 2A)...................................... 41,524
Accrued expenses and other liabilities........................................................ 49,511
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Total liabilities........................................................................... 49,636,368
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NET ASSETS.................................................................................... $832,258,377
============
REPRESENTED BY:
Paid-in capital for beneficial interests...................................................... $832,258,377
============
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U.S. Treasury Reserves Portfolio
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STATEMENT OF OPERATIONS
For the Year Ended August 31, 1995
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</TABLE>
<TABLE>
<S> <C> <C>
INTEREST INCOME (Note 1B).................................................. $41,794,322
EXPENSES:
Investment Advisory fees (Note 2A)......................................... $1,148,418
Administrative fees (Note 2B).............................................. 382,806
Custodian fees............................................................. 257,830
Auditing fees.............................................................. 21,800
Trustee fees............................................................... 15,714
Legal fees................................................................. 11,529
Amortization of organization expenses (Note 1D)............................ 4,307
Miscellaneous.............................................................. 58,728
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Total expenses........................................................... 1,901,132
Less aggregate amount waived by Investment Adviser and
Administrator (Notes 2A and 2B)........................................ (1,135,911)
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Net expenses............................................................. 765,221
-----------
Net investment income.................................................... $41,029,101
===========
</TABLE>

Net investment income..................................................... $ 41,029,101 $ 19,484,825
-------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from contributions............................................... 2,996,270,146 1,195,331,966
Value of withdrawals...................................................... (2,931,609,982) (1,010,065,239)
-------------- ---------------
Net increase in net assets from capital transactions.................... 64,660,164 185,266,727
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NET INCREASE IN NET ASSETS................................................ 105,689,265 204,751,552
NET ASSETS:
Beginning of period....................................................... 726,569,112 521,817,560
-------------- ---------------
End of period............................................................. $ 832,258,377 $ 726,569,112
============== ===============

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U.S. Treasury Reserves Portfolio
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FINANCIAL HIGHLIGHTS
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</TABLE>
<TABLE>
<CAPTION>
MARCH 1, 1991
YEAR ENDED AUGUST 31, (COMMENCEMENT
---------------------- EIGHT MONTHS ENDED YEAR ENDED OF OPERATIONS) TO
1995 1994 AUGUST 31, 1993 DECEMBER 31, 1992 DECEMBER 31, 1991
------ ------ --------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000's omitted) $832,258 $726,569 $521,818 $590,769 $675,332
Ratio of expenses to average net assets 0.10% 0.12% 0.20%<F1> 0.24% 0.19%<F1>
Ratio of net investment income to average
net assets............................. 5.36% 3.43% 2.96%<F1> 3.59% 5.26%<F1>

Note: If the agents of the Portfolio had not voluntarily waived a portion of their fees for the periods indicated, the ratios
would have been as follows:
RATIOS:
Expenses to average net assets........... 0.25% 0.26% 0.25%<F1> 0.25% 0.25%<F1>
Net investment income to average
net assets............................. 5.21% 3.30% 2.91%<F1> 3.58% 5.19%<F1>

<FN>
<F1> Annualized.
</TABLE>

(1) SIGNIFICANT ACCOUNTING POLICIES
U.S. Treasury Reserves Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, as a no-load, diversified, open-end
management investment company which was organized as a trust under the laws of
the State of New York. The Declaration of Trust permits the Trustees to issue
beneficial interests in the Portfolio. The Landmark Funds Broker-Dealer
Services, Inc. ("LFBDS") acts as the Portfolio's Administrator and Citibank,
N.A. ("Citibank") acts as the Investment Adviser.

The significant accounting policies consistently followed by the Portfolio are
in conformity with generally accepted accounting principles and are as follows:

A. VALUATION OF INVESTMENTS -- Money market instruments are valued at amortized
cost, which the Trustees have determined in good faith constitutes fair value.
This method involves valuing a portfolio security at its cost and thereafter
assuming a constant amortization to maturity of any discount or premium. The
Portfolio's use of amortized cost is subject to the Portfolio's compliance with
certain conditions as specified under Rule 2a-7 of the Investment Company Act of
1940.

B. INTEREST INCOME AND EXPENSES -- Interest income consists of interest accrued
and discount earned (including both original issue and market discount),
adjusted for amortization of premium, on the investments of the Portfolio,
accrued ratably to the date of maturity, plus or minus net realized gain or
loss, if any, on investments. Expenses of the Portfolio are accrued daily.

C. FEDERAL INCOME TAXES -- The Portfolio's policy is to comply with the
applicable provisions of the Internal Revenue Code. Accordingly, no provision
for federal income taxes is necessary.

D. DEFERRED ORGANIZATION EXPENSES -- Expenses incurred by the Portfolio in
connection with its organization have been deferred and are being amortized on a
straight-line basis not to exceed five years.

E. OTHER -- Purchases, maturities and sales of money market instruments are
accounted for on the date of the transaction.

(2) INVESTMENT ADVISORY FEES AND ADMINISTRATIVE FEES
A. INVESTMENT ADVISORY FEES -- The investment advisory fees paid to Citibank, as
compensation for overall investment management services, amounted to $1,148,418,
of which $753,105 was voluntarily waived for the year ended August 31, 1995. The
investment advisory fee is computed at an annual rate of 0.15% of the
Portfolio's average daily net assets.

B. ADMINISTRATIVE FEES -- Under the terms of an Administrative Services
Agreement, the administrative fee paid to the Administrator, as compensation for
overall administrative services and general office facilities, is accrued daily
and paid monthly at the annual rate of 0.05% of the Portfolio's average daily
net assets. The administrative fee amounted to $382,806, all of which was
voluntarily waived for the year ended August 31, 1995. The Portfolio pays no
compensation directly to any Trustee or any officer who is affiliated with the
Administrator, all of whom receive remuneration for their services to the
Portfolio from the Administrator or its affiliates. Certain of the officers and
a Trustee of the Portfolio are officers and a director of the Administrator or
its affiliates.

(3) INVESTMENT TRANSACTIONS
Purchases, maturities and sales of U.S. Treasury obligations, aggregated
$9,905,935,862 and $9,782,029,952, respectively, for the year ended August 31,
1995.

(4) LINE OF CREDIT
The Portfolio, along with other Landmark Funds, entered into an agreement with a
bank which allows the Funds collectively to borrow up to $40 million for
temporary or emergency purposes. Interest on borrowings, if any, is charged to
the specific fund executing the borrowing at the base rate of the bank. In
addition, the $15 million committed portion of the line of credit requires a
quarterly payment of a commitment fee based on the average daily unused portion
of the line of credit. For the year ended August 31, 1995, the commitment fee
allocated to the Portfolio was $5,418. Since the line of credit was established,
there have been no borrowings.

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U.S. Treasury Reserves Portfolio
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INDEPENDENT AUDITORS' REPORT
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TO THE TRUSTEES AND INVESTORS OF U.S. TREASURY RESERVES PORTFOLIO:

We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of U.S. Treasury Reserves Portfolio (a
New York Trust) as of August 31, 1995, the related statement of operations for
the year then ended, the statement of changes in net assets for the years ended
August 31, 1995 and 1994 and the financial highlights for each of the years in
the two-year period ended August 31, 1995, the eight months ended August 31,
1993, the year ended December 31, 1992 and the period from March 1, 1991
(Commencement of Operations) to December 31, 1991. These financial statements
and financial highlights are the responsibility of the Trust'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 the securities owned as of
August 31, 1995, by correspondence with the Custodian and brokers. 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, such financial statements and financial highlights present
fairly, in all material respects, the financial position of U.S. Treasury
Reserves Portfolio at August 31, 1995, the results of its operations, the
changes in its net assets, and its financial highlights for the respective
stated periods in conformity with generally accepted accounting principles.

DELOITTE & TOUCHE LLP

Boston, Massachusetts
October 9, 1995