<PAGE>
- --------------------------------------------------------------------------------
- --------- CHAIRMAN'S LETTER
July 15, 1996
DEAR SHAREHOLDER:
I am pleased to report to you on the performance of the BNY Hamilton Money
Fund for the first half of 1996. I would like to take this opportunity to
express my appreciation for the confidence you have placed in the Fund to invest
your money. Growth in the Fund was strong. Net assets increased 17%, finishing
the first half of the year at $1.1 billion.
The Fund is invested to provide safety, liquidity and high yield.
Consistent with these objectives, overnight repurchase agreements backed by U.S.
Government securities currently constitute the largest portion of the Fund.
Other Fund investments include commercial paper, U.S. Treasuries and Agencies
and floating rate notes. Selection of maturities are determined by the supply
and type of money market instruments available in the market as well as Federal
Reserve policy and by the liquidity needs of our shareholders.
At the end of June 1996, the 7-day current yield for the Hamilton Class of
the BNY Hamilton Money Fund was 5.15%. The year to date annualized return was
5.22%. For the Premier Class, the 7-day current yield was 4.89%. The year to
date annualized return was 4.96%. The 7-day current yield for the Classic Class
was 4.63%. The year to date annualized return was 4.70%.*
The Fund has achieved special recognition by Standard & Poor's, receiving a
AAAm rating. This rating is historical and is based upon the Fund's credit
quality, market price exposure and management. It signifies that the Fund's
safety is excellent and that it has a superior capacity to maintain a $1.00 net
asset value per share.
We are pleased to provide you with the safety, liquidity and high yield the
BNY Hamilton Money Fund offers. The Bank of New York as investment adviser to
the Funds will continue to manage your assets with the same degree of
conscientiousness, prudence and sensitivity to market changes in the months
ahead.
Thank you for your support.
Sincerely,
Eugene J. Sullivan
Chairman of the Board
- ------------------
* An investment in the Fund is neither insured nor guaranteed by the U.S.
Government. Yields will fluctuate with market conditions. Past performance is
no guarantee of future results. There can be no assurance that the Fund will
be able to maintain a stable net asset value of $1.00 per share.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- --------- TABLE OF CONTENTS
<TABLE>
<S> <C>
SCHEDULE OF INVESTMENTS............................... Page 1
STATEMENT OF ASSETS AND LIABILITIES................... 5
STATEMENT OF OPERATIONS............................... 5
STATEMENTS OF CHANGES IN NET ASSETS................... 6
FINANCIAL HIGHLIGHTS.................................. 7
NOTES TO FINANCIAL STATEMENTS......................... 9
DIRECTORS AND OFFICERS................................ 11
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- --------- BNY HAMILTON MONEY FUND
Schedule of Investments
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
<S> <C> <C>
COMMERCIAL PAPER-- 28.78%
ASSET BACKED SECURITIES--
TRADE & LEASE RECEIVABLES
(PARTIAL SUPPORT)--5.57%
$ 25,000,000 Matterhorn Capital Corp.,
5.35%+, 8/13/96............. $ 24,840,243
20,000,000 New Center Asset Trust,
5.30%+, 7/1/96.............. 20,000,000
17,127,000 Sheffield Receivables Corp.,
5.28%+, 7/1/96.............. 17,127,000
--------------
61,967,243
--------------
BANK HOLDING COMPANIES--
0.63%
7,000,000 Chase Manhattan Corp.,
4.93%+, 7/8/96.............. 6,993,290
--------------
BANKS--FOREIGN
INSTITUTIONS--5.57%
25,000,000 Dresdner U.S. Finance, Inc.,
5.34%+, 7/3/96.............. 24,992,583
25,000,000 Louis Dreyfus Corp., Series
B, 5.14%+, 7/8/96 (LOC:
Credit Agricole)*........... 24,974,139
12,000,000 Royal Bank of Canada,
5.12%+, 7/8/96.............. 11,988,053
--------------
61,954,775
--------------
BEVERAGES--2.25%
25,000,000 Coca-Cola Co., 5.28%+,
7/9/96...................... 24,970,667
--------------
BROKERAGE SERVICES--4.03%
20,000,000 Lehman Brothers Holdings,
Inc., 5.45%+, 8/12/96....... 19,872,833
25,000,000 Morgan Stanley, 5.29%+,
7/16/96..................... 24,944,896
--------------
44,817,729
--------------
CHEMICALS--1.79%
20,000,000 du Pont (E.I.) de Nemours &
Co., 5.30%+, 7/23/96........ 19,934,733
--------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
<S> <C> <C>
ELECTRICAL & ELECTRONIC
EQUIPMENT--2.23%
$ 25,000,000 Lucent Technologies, Inc.,
5.38%+, 8/27/96............. $ 24,787,042
--------------
FOREIGN GOVERNMENTS &
RELATED ISSUES--
FRANCE--1.33%
15,000,000 Caisse D'Amortissement De La
Sociale, 5.39%+, 9/24/96.... 14,809,104
--------------
LEASING (WHOLESALE &
RETAIL)--AUTOS, TRUCKS &
RV'S--3.59%
20,000,000 Ford Motor Credit Co.,
5.32%+, 7/11/96............. 19,970,611
20,000,000 Hertz Corp., 5.29%+,
7/18/96..................... 19,950,039
--------------
39,920,650
--------------
PHARMACEUTICALS, HEALTH
CARE, COSMETICS & SOAP--
1.79%
20,000,000 Abbott Laboratories, 5.30%+,
7/16/96..................... 19,955,833
--------------
TOTAL COMMERCIAL PAPER (Cost
$320,111,066)............... 320,111,066
--------------
UNITED STATES GOVERNMENT
AGENCIES &
OBLIGATIONS--21.52%
UNITED STATES GOVERNMENT
AGENCY SECURITIES--17.49%
Federal Farm Credit Bank,
11,150,000 5.08%+, 7/3/96.............. 11,146,853
15,300,000 5.75%, 8/1/96............... 15,299,683
10,000,000 5.40%, 4/1/97............... 9,991,367
Federal Home Loan Bank,
7,500,000 5.71%, 8/9/96............... 7,499,719
14,000,000 5.04%, 2/28/97.............. 13,989,184
5,000,000 5.325%, 3/18/97............. 4,992,480
5,000,000 5.325%, 4/17/97............. 4,998,937
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
1
<PAGE>
- --------------------------------------------------------------------------------
- --------- BNY HAMILTON MONEY FUND
Schedule of Investments (continued)
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
UNITED STATES GOVERNMENT
AGENCIES & OBLIGATIONS
(CONTINUED)
<S> <C> <C>
Federal Home Loan Mortgage
Corporation,
$ 30,000,000 5.22%+, 7/8/96.............. $ 29,969,317
4,040,000 4.96%, 2/3/97............... 4,036,033
Federal National Mortgage
Association,
5,000,000 4.82%+, 8/16/96............. 4,969,206
5,000,000 4.81%+, 8/29/96............. 4,960,585
10,000,000 5.32%+, 9/16/96............. 9,886,211
9,000,000 5.68%, 10/7/96.............. 8,999,577
5,000,000 5.13%+, 10/30/96............ 4,913,788
7,000,000 5.47%, 11/14/96............. 6,998,870
10,000,000 5.07%, 1/23/97.............. 9,998,241
10,000,000 4.82%, 2/10/97.............. 9,996,439
12,000,000 4.97%, 3/10/97.............. 11,983,253
20,000,000 5.48%, 4/24/97.............. 19,987,286
--------------
194,617,029
--------------
UNITED STATES TREASURY
BILLS--0.87%
10,000,000 5.11%+, 2/6/97.............. 9,686,098
--------------
UNITED STATES TREASURY
NOTES--3.16%
16,000,000 6.125%, 5/31/97............. 16,054,847
9,000,000 6.75%, 5/31/97.............. 9,074,860
10,000,000 5.625%, 6/30/97............. 9,988,223
--------------
35,117,930
--------------
TOTAL UNITED STATES
GOVERNMENT AGENCIES &
OBLIGATIONS (Cost
$239,421,057)............... 239,421,057
--------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
FLOATING RATE
NOTES--7.55%
BANK HOLDING COMPANIES--
2.88%
<S> <C> <C>
$ 12,000,000 American Express Centurion
Bank, 5.4661%+, payable
monthly, interest rate
resets monthly, next
interest rate reset date
7/16/96, final maturity
10/16/96.................... $ 11,998,948
20,000,000 Boatmens National Bank of
St. Louis, 5.62%+, payable
quarterly, interest rate
resets weekly, next interest
rate reset date 7/2/96,
final maturity 6/17/97...... 20,000,000
--------------
31,998,948
--------------
BROKERAGE SERVICES--3.77%
13,000,000 Bear Stearns Companies,
Inc., 5.4875%+, payable
monthly, interest rate
resets monthly, next
interest rate reset date
7/3/96, final maturity
10/3/96..................... 13,000,000
12,000,000 Bear Stearns Companies,
Inc., 5.5344%+, payable
monthly, interest rate
resets monthly, next
interest rate reset date
7/15/96, final maturity
6/13/97..................... 12,000,000
17,000,000 Merrill Lynch & Co., Inc.,
5.4861%+, payable monthly,
interest rate resets
monthly, next interest rate
reset date 7/16/96, final
maturity 5/27/97............ 17,000,000
--------------
42,000,000
--------------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
- --------- BNY HAMILTON MONEY FUND
Schedule of Investments (continued)
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
FLOATING RATE NOTES
(CONTINUED)
<S> <C> <C>
UNITED STATES GOVERNMENT
AGENCY SECURITIES--0.90%
$ 10,000,000 Federal Farm Credit Bank,
5.39%+, payable quarterly,
interest rate resets weekly,
next interest rate reset
date 7/3/96, final maturity
11/8/96..................... $ 9,996,113
--------------
TOTAL FLOATING RATE NOTES
(Cost $83,995,061).......... 83,995,061
--------------
CERTIFICATE OF
DEPOSIT--2.52%
BANK HOLDING COMPANIES--
1.80%
20,000,000 First Alabama Bank,
Montgomery, 5.36%,
7/22/96..................... 20,000,000
--------------
BANKS--FOREIGN
INSTITUTIONS--0.72%
8,000,000 ABN AMRO Bank, 5.53%,
3/18/97..................... 8,001,094
--------------
TOTAL CERTIFICATE OF DEPOSIT
(Cost $28,001,094).......... 28,001,094
--------------
FIXED RATE DEBT
OBLIGATIONS--0.94%
ASSET BACKED SECURITIES--
OTHER ASSET BACKED
PROGRAMS--0.04%
456,082 Navistar Financial Corp.,
5.75%, 11/15/96............. 456,080
--------------
FINANCE COMPANIES--
NON-CAPTIVE &
INDEPENDENT--0.90%
10,000,000 General Electric Capital
Corp., 5.10%, 1/27/97....... 9,999,315
--------------
TOTAL FIXED RATE DEBT
OBLIGATIONS (Cost
$10,455,395)................ 10,455,395
--------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
<S> <C> <C>
TIME DEPOSITS-- FOREIGN
INSTITUTIONS--
0.18%
$ 2,048,000 Societe Generale, 5.375%,
7/1/96 (Cost $2,048,000).... $ 2,048,000
--------------
REPURCHASE
AGREEMENTS--38.65%
REPURCHASE AGREEMENTS WITH
BARCLAYS DEZOETE WEDD--
8.99%
100,000,000 5.60%, due 7/1/96,
repurchase price
$100,046,667 (Collateral--
Federal Home Loan Mortgage
Corporation Bonds,
6.00%-9.00%,
11/15/06-5/1/26; Federal
National Mortgage
Association Bonds,
6.00%-7.00%, 7/25/99-6/1/26;
aggregate market value plus
accrued interest
$103,000,000) (Cost
$100,000,000)............... 100,000,000
--------------
REPURCHASE AGREEMENTS WITH
DEAN WITTER REYNOLDS,
INC.--10.78%
120,000,000 5.50%-5.55%, due 7/1/96,
repurchase price
$120,055,083 (Collateral--
Federal Farm Credit Bank
Zero Coupon Note, 7/30/96;
Federal Home Loan Bank
Notes, 5.82%-7.03%,
8/8/00-1/11/06; Federal Home
Loan Mortgage Corporation
Bonds including Zero Coupon
Notes, 0.00%-7.50%,
7/24/96-2/15/24; Federal
National Mortgage
Association Notes/Bonds,
5.55%-7.00%,
3/12/99-8/25/23; Tennessee
Valley Authority Bond,
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
3
<PAGE>
- --------------------------------------------------------------------------------
- --------- BNY HAMILTON MONEY FUND
Schedule of Investments (continued)
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
<S> <C> <C>
REPURCHASE AGREEMENTS
(CONTINUED)
7.625%, 9/1/22;
United States Treasury Bill,
Zero Coupon, 8/8/96; United
States Treasury Notes,
5.75%-7.875%,
8/31/96-12/31/99; United
States Treasury Bonds
including Zero Coupon Bonds,
0.00%-7.50%,
5/15/00-11/15/24; World Bank
Global Bond, 6.375%,
7/21/05; aggregate market
value plus accrued interest
$123,321,241) (Cost
$120,000,000)............... $ 120,000,000
--------------
REPURCHASE AGREEMENTS WITH
DEUTSCHE BANK AG--9.89%
$110,000,000 5.50%, due 7/1/96,
repurchase price
$110,050,417 (Collateral--
Federal Home Loan Mortgage
Corporation Notes/Bonds,
5.84%-7.88%,
12/20/96-1/1/26; Federal
National Mortgage
Association Bonds,
5.74%-7.50%,
8/25/08-4/25/23; aggregate
market value plus accrued
interest $113,297,401) (Cost
$110,000,000)............... 110,000,000
--------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
<S> <C> <C>
REPURCHASE AGREEMENTS WITH
GOLDMAN, SACHS & CO.-- 8.99%
$100,000,000 5.50%, due 7/1/96,
repurchase price
$100,045,833 (Collateral--
African Development Bank
Bonds, 7.75%-9.30%,
7/1/00-12/15/01;
InterAmerican Development
Bank Notes/Bonds,
8.50%-9.45%,
9/15/98-3/15/11; World Bank
Zero Coupon Notes,
7/18/96-3/4/97; United
States Treasury Note,
5.375%, 5/31/98; aggregate
market value plus accrued
interest $102,000,556) (Cost
$100,000,000)............... $ 100,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $430,000,000)......... 430,000,000
--------------
TOTAL INVESTMENTS--
(Cost $1,114,031,673)(a)--
100.14%..................... 1,114,031,673
Other assets less
liabilities-- (0.14%)....... (1,591,129)
--------------
NET ASSETS--100%............ $1,112,440,544
==============
</TABLE>
(a) The cost stated also represents the aggregate cost for Federal income tax
purposes.
+ Represents yield at time of purchase for commercial paper, discounted rate at
time of purchase for United States Government agencies & obligations, and
interest rate in effect at June 30, 1996 for floating rate notes.
* Backed by a letter of credit.
See notes to financial statements.
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
- --------- Statement of Assets and Statement of Operations
Liabilities
JUNE 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
including repurchase agreements
of $430,000,000 (Identified cost
$1,114,031,673).................. $1,114,031,673
Cash................................ 377
Interest receivable................. 3,293,769
Deferred organization costs and
other assets..................... 181,904
--------------
TOTAL ASSETS..................... 1,117,507,723
--------------
LIABILITIES:
Dividends
payable: Hamilton Shares......... 2,980,913
Hamilton Premier
Shares................ 1,615,466
Hamilton Classic
Shares................ 50,712
Services provided by The Bank of New
York and Administrator........... 319,315
Accrued expenses and other
liabilities...................... 100,773
--------------
TOTAL LIABILITIES................ 5,067,179
--------------
NET ASSETS:
(applicable to shares issued and
outstanding; 9 billion shares of
$.001 par value authorized)...... $1,112,440,544
==============
SOURCES OF NET ASSETS:
Capital stock @ par................. $ 1,112,386
Capital surplus..................... 1,111,273,228
Accumulated net realized gain on
investments...................... 54,930
--------------
NET ASSETS............................ $1,112,440,544
==============
HAMILTON SHARES:
Net asset value, offering price and
redemption price per share
($723,760,681/723,729,988
shares).......................... $ 1.00
==============
HAMILTON PREMIER SHARES:
Net asset value, offering price and
redemption price per share
($374,750,801/374,727,174
shares).......................... $ 1.00
==============
HAMILTON CLASSIC SHARES:
Net asset value, offering price and
redemption price per share
($13,929,062/13,928,452 shares).. $ 1.00
==============
</TABLE>
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest............................... $29,596,701
-----------
EXPENSES:
Advisory............................... 546,568
Administration......................... 546,568
12b-1 fee--Hamilton Classic Shares..... 13,711
Servicing fee: Hamilton Premier
Shares.................. 526,194
Hamilton Classic
Shares.................. 13,711
Accounting services.................... 29,836
Cash management: Hamilton
Shares............ 4,340
Hamilton
Premier
Shares............ 14,814
Custodian.............................. 84,515
Transfer agent: Hamilton Shares........ 8,912
Hamilton Premier
Shares................. 17,359
Hamilton Classic
Shares................. 814
Audit.................................. 24,334
Insurance.............................. 16,197
Directors'............................. 8,307
Reports to shareholders................ 11,160
Registration and filing................ 106,970
Legal.................................. 30,935
Other.................................. 28,321
-----------
TOTAL EXPENSES...................... 2,033,566
-----------
NET INVESTMENT INCOME............... 27,563,135
Net realized gain on investments......... 54,930
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS............................. $27,618,065
-----------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
- --------- Statements of Changes in Net Assets (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1996 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income....................................................... $ 27,563,135 $ 37,796,901
Net realized gain on investments............................................ 54,930 --
-------------- --------------
Net increase in net assets resulting from operations........................ 27,618,065 37,796,901
-------------- --------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income: Hamilton Shares....................... (17,028,505) (24,629,959)
Hamilton Premier Shares............ (10,281,030) (13,159,984)
Hamilton Classic Shares............ (253,600) (6,958)
-------------- --------------
(27,563,135) (37,796,901)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Hamilton Shares........................... 1,196,652,570 2,243,841,012
Hamilton Premier Shares................... 2,116,539,237 2,810,413,019
Hamilton Classic Shares................... 16,745,422 3,150,632
Proceeds from shares issued on reinvestment of
dividends: Hamilton Shares............................................... 1,694,749 3,388,955
Hamilton Premier Shares....................................... 4,325,744 7,918,171
Hamilton Classic Shares....................................... 198,695 6,393
Cost of capital stock repurchased: Hamilton Shares.......................... (1,078,669,837) (1,878,397,366)
Hamilton Premier Shares.................. (2,086,300,903) (2,585,966,924)
Hamilton Classic Shares.................. (6,114,057) (58,633)
-------------- --------------
Increase in net assets resulting from capital stock transactions......... 165,071,620 604,295,259
-------------- --------------
INCREASE IN NET ASSETS................................................. 165,126,550 604,295,259
NET ASSETS:
Beginning of period......................................................... 947,313,994 343,018,735
-------------- --------------
End of period............................................................... $1,112,440,544 $ 947,313,994
============== ==============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold: Hamilton Shares................................................ 1,196,652,570 2,243,841,012
Hamilton Premier Shares......................................... 2,116,539,237 2,810,413,019
Hamilton Classic Shares......................................... 16,745,422 3,150,632
Shares issued on reinvestment of dividends: Hamilton Shares................. 1,694,749 3,388,955
Hamilton Premier Shares......... 4,325,744 7,918,171
Hamilton Classic Shares......... 198,695 6,393
Shares repurchased: Hamilton Shares......................................... (1,078,669,837) (1,878,397,366)
Hamilton Premier Shares................................. (2,086,300,903) (2,585,966,924)
Hamilton Classic Shares................................. (6,114,057) (58,633)
-------------- --------------
Net increase............................................................. 165,071,620 604,295,259
Shares outstanding, beginning of period..................................... 947,313,994 343,018,735
-------------- --------------
Shares outstanding, end of period........................................... 1,112,385,614 947,313,994
============== ==============
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
6
<PAGE>
- --------------------------------------------------------------------------------
- --------- Financial Highlights (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON SHARES
----------------------------------------------------------------------
FOR THE
PERIOD
AUGUST 7,
SIX MONTHS 1992*
ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, ------------------------------------ DECEMBER 31,
1996 1995 1994 1993 1992
---------- -------- -------- -------- ------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- -------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income............... 0.026 0.057 0.040 0.030 0.012
--------- -------- -------- -------- ----------
DIVIDENDS
Dividends from net investment
income............................ (0.026) (0.057) (0.040) (0.030) (0.012)
--------- -------- -------- -------- ----------
Net asset value at end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ======== ======== ==========
TOTAL RETURN:....................... 2.60%** 5.84% 4.02% 3.03% 1.26%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)................... $723,761 $604,053 $235,220 $307,395 $135,852
Ratio to average net assets of:
Expenses, net of waiver from The
Bank of New York............... 0.27%*** 0.26% 0.30% 0.27% 0.20%***
Expenses, prior to waiver from The
Bank of New York............... 0.27%*** 0.26% 0.32% 0.32% 0.49%***
Net investment income, net of
waiver from The Bank of New
York........................... 5.17%*** 5.67% 3.92% 2.97% 3.11%***
</TABLE>
* Commencement of investment operations.
** Not annualized.
*** Annualized.
See notes to financial statements.
- --------------------------------------------------------------------------------
7
<PAGE>
- --------------------------------------------------------------------------------
- --------- Financial Highlights (Unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON PREMIER SHARES HAMILTON CLASSIC SHARES
------------------------------------------ --------------------------
FOR THE FOR THE
PERIOD PERIOD
AUGUST 15, DECEMBER 4,
SIX MONTHS 1994* SIX MONTHS 1995*
ENDED YEAR ENDED THROUGH ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31, JUNE 30, DECEMBER 31,
1996 1995 1994 1996 1995
---------- ------------ ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income............... 0.024 0.054 0.017 0.023 0.004
-------- -------- -------- -------- ------
DIVIDENDS
Dividends from net investment
income............................ (0.024) (0.054) (0.017) (0.023) (0.004)
-------- -------- -------- -------- ------
Net asset value at end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======
TOTAL RETURN:....................... 2.46%** 5.54% 1.69%** 2.34%** 0.40%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)................... $374,751 $340,163 $107,799 $ 13,929 $3,098
Ratio to average net assets of:
Expenses.......................... 0.53%*** 0.54% 0.61%*** 0.78%*** 0.76%***
Net investment income ............ 4.90%*** 5.40% 4.40%*** 4.65%*** 5.18%***
</TABLE>
* Commencement of investment operations for the respective class of shares.
** Not annualized.
*** Annualized.
See notes to financial statements.
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1. ORGANIZATION AND BUSINESS
The BNY Hamilton Funds, Inc. (the 'Company') was organized as a Maryland
Corporation on May 1, 1992 and is registered under the Investment Company Act of
1940 as an open-end management investment company. The Company currently
consists of four series. The BNY Hamilton Money Fund (the 'Fund') commenced
investment operations on August 7, 1992. The Fund consists of three classes of
shares: Hamilton Shares, Hamilton Premier Shares, and Hamilton Classic Shares.
2. SIGNIFICANT ACCOUNTING POLICIES
(A) SECURITY VALUATIONS
Securities are valued at amortized cost which approximates market value. This
method values a security at its cost at the time of purchase and thereafter
assumes a constant rate of amortization to maturity of any discount or premium.
(B) REPURCHASE AGREEMENTS
The Fund's custodian or designated sub-custodians, as the case may be under
tri-party repurchase agreements, takes possession of the collateral pledged for
investments in repurchase agreements. The underlying collateral is valued daily
on a mark-to-market basis to ensure that the value, including accrued interest,
is at least equal to the repurchase price. In the event of default of the
obligation to repurchase, the Fund has the right to liquidate the collateral and
apply the proceeds in satisfaction of the obligations. Under certain
circumstances, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings.
(C) FEDERAL INCOME TAXES
The Fund is treated as a separate entity for federal income tax purposes. The
Fund's policy is to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and distribute income to
shareholders within the allowable time limits. Therefore, no federal income tax
provision is required.
(D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income is declared daily and paid monthly.
(E) SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date and interest income is
accrued daily. Discounts and premiums on securities purchased are amortized over
the life of the respective securities.
Income, expenses (other than class specific expenses) and realized gains and
losses, if any, are allocated to each class of shares based upon their relative
shares outstanding.
(F) ORGANIZATION COSTS
Costs incurred in connection with the organization and initial registration
of the Fund are being amortized evenly over the period of benefit not to exceed
60 months from the date upon which the Fund commenced investment operations.
3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES
The Bank of New York acts as the Fund's investment adviser (the 'Adviser').
The Adviser manages the investments of the Fund and is responsible for all
purchases and sales of the Fund's portfolio securities. The Adviser's fee is
accrued daily and is payable monthly at the annual rate of .10% of the average
daily net assets of the Fund.
BNY Hamilton Distributors, Inc. acts as the Fund's administrator (the
'Administrator') and will assist generally in supervising the operations of the
Fund.
The Administrator has agreed to provide facilities, equipment and personnel
to carry out administrative services for the Fund, including, among other
things,
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9
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- --------- Notes to Financial Statements (Unaudited) (continued)
providing the services of persons who may be appointed as officers and directors
of the Fund, monitoring the custodian, fund accounting, transfer agency,
administration, distribution, advisory and legal services that are provided to
the Fund.
The Administrator's fee is accrued daily and is payable monthly at the annual
rate of .10% of the average daily net assets of the Fund.
In addition to acting as Administrator, BNY Hamilton Distributors, Inc. is
the principal underwriter and distributor of shares of the Fund. The Bank of New
York serves as the Fund's custodian and also serves as the fund accounting
agent.
BNY Hamilton Funds, Inc. has adopted a shareholder servicing plan, pursuant
to which Hamilton Premier Shares and Hamilton Classic Shares are sold to certain
institutions that enter into servicing agreements with BNY Hamilton Funds, Inc.
The Bank of New York and the Administrator (the 'Shareholder Servicing Agents')
have each entered into Shareholder Service Agreements with respect to Hamilton
Premier Shares and Hamilton Classic Shares of the Fund. The Shareholder
Servicing Agents will perform shareholder support services. Pursuant to the
Shareholder Servicing Agreements, the Hamilton Premier Shares and Hamilton
Classic Shares will pay the Shareholder Servicing Agents an annual shareholder
servicing fee, accrued daily and payable monthly, of .25% of the Hamilton
Premier Shares' and Hamilton Classic Shares' respective average daily net
assets. The shareholder servicing plan does not cover, and the fees thereunder
are not payable to, Shareholder Organizations with respect to Hamilton Shares.
The Fund has adopted a distribution plan ('12b-1 Plan') with respect to
Hamilton Classic Shares of the Fund, pursuant to which the Fund will pay BNY
Hamilton Distributors, Inc. for expenses incurred during the year in connection
with the distribution of Hamilton Classic Shares. The aggregate amount payable
annually by the Fund as provided in the 12b-1 Plan may not exceed .25% of the
Hamilton Classic Shares' average daily net assets.
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10
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DIRECTORS AND OFFICERS
Eugene Sullivan, Director and Chairman of the Board
Peter Herrick, Director
Leif H. Olsen, Director
Stephen Stamas, Director
Edward L. Gardner, Director
J. David Huber, Chief Executive Officer
William J. Tomko, President
Michael J. Brascetta, Vice President
Mary A. Madick, Vice President
Karen A. Doyle, Vice President
Mark E. Nagle, Treasurer
Martin R. Dean, Assistant Treasurer
George O. Martinez, Secretary
Alaina Metz, Assistant Secretary
Bruce Treff, Assistant Secretary
INVESTMENT ADVISER
The Bank of New York
ADMINISTRATOR AND DISTRIBUTOR
BNY Hamilton Distributors, Inc.
TRANSFER AGENT
BISYS Fund Services, Inc.
CUSTODIAN
The Bank of New York
INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
LEGAL COUNSEL
Sullivan & Cromwell
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11
<PAGE>
BNY HAMILTON DISTRIBUTORS, INC. IS THE FUND'S DISTRIBUTOR AND IS UNAFFILIATED
WITH THE BANK OF NEW YORK, THE INVESTMENT ADVISER.
This report is not authorized for distribution to prospective investors unless
accompanied by a current prospectus for the BNY Hamilton Money Fund. Please read
the prospectus carefully before investing or sending money.
BNY HAMILTON FUNDS, INC.
3435 Stelzer Road
Columbus, Ohio 43219-3035
INVESTMENTS IN BNY HAMILTON MONEY FUND ARE NOT DEPOSITS, ARE NEITHER GUARANTEED
BY NOR OBLIGATIONS OF THE BANK OF NEW YORK AND ARE NOT INSURED BY THE FDIC OR
ANY OTHER GOVERNMENTAL AGENCY. INVESTMENTS IN MUTUAL FUNDS INVOLVE RISKS,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
BNY-0039
BNY HAMILTON
MONEY FUND
SEMI-ANNUAL REPORT
JUNE 30, 1996
(UNAUDITED)
O HAMILTON SHARES
O HAMILTON PREMIER
SHARES
O HAMILTON CLASSIC
SHARES
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