[PHOTO]
The
Gabelli
U.S. Treasury
Money Market
Fund
SEMI-ANNUAL REPORT
MARCH 31, 1995
<PAGE>
The Gabelli U.S. Treasury Money Market Fund
One Corporate Center
Rye, New York 10580-1434
Semi - Annual Report
March 31, 1995 (a)
To Our Shareholders:
The economy continues to markedly slow down from the
torrid last quarter
of 1994 (4th Quarter Gross Domestic Product +5.1%), which drove
rates down and
flattened the yield curve. Since the beginning of the year,
yields in the long
end of the market have dropped nearly 50 basis points as the
threat of any major
uptick in inflation has waned. The curve has flattened by 60
basis points as a
result of the higher rates at three months to overnight
maturities, and a major
shift of funds out along the yield curve. Some still see the
possibility of
another rate hike at the Federal Reserve Policy meeting on May
23rd, but many
hard-line bears are beginning to crack, seeing the Fed on
hold for the
foreseeable future. The bite of higher rates has most certainly
taken its toll
on the housing and auto industries, however the jury is still
out on just how
close the Fed is to achieving its cherished soft landing.
Our response to the market has been to continue building
liquidity, trade
on market weakness, and remain open to the possibility of one
more Fed move.
Since the curve from over-night to two years is extremely
flat, or even
inverted, we have chosen not to chase this market to higher price
levels, but to
stay laddered out through three months, until value returns to
the market. We
believe at this juncture, with the possibility of a Fed
tightening in May or
July, the market remains expensive. To extend portfolio
maturities at this time
one must believe that the Fed is going to ease policy. We
believe that the
release of the April retail sales number in May will be the key
to further Fed
policy moves. If the consumer returns this spring, further
hikes could be in
store. Although in the near term the market looks expensive,
we take a very
positive long-term view. Because it can take up to a year for
policy changes to
move through the system, we have yet to feel the full effects of
the Fed's hand.
Investment Results
From the Fund's inception on October 1, 1992 through March
31,1995, the
Fund earned an annualized return of 3.46%. The 7-day yield
and the 30-day
annualized yield on March 31,1995 were 5.59% and 5.58%,
respectively. As of
March 31,1995, the Fund had net assets of $267.7
million with 5,937
shareholders. The Fund maintained a stable net asset value of
$1.00 per share
throughout the period.
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(a) The Fiscal year ends September 30, 1995.
<PAGE>
Minimum Initial Investment - $10,000
The minimum initial investment is $10,000. However,
shareholders of any of
the Gabelli Funds may acquire the Fund with an initial
investment of $3,000.
IRAs and retirement related accounts and custodial accounts for
minors require
an initial investment of only $1,000. The Fund provides
checkwriting and
exchange privileges. Expenses are capped at .30% of average net
assets, making
it one of the most attractive U.S. Treasury-only money market
funds. The Fund is
designed as a low-cost investment vehicle for the long-term
investor and is an
excellent vehicle in which to store idle cash. The Fund continues
to offer Free
Check Writing for the first 10,000 investors.
Daily Dividends
The Fund declares daily dividends which are reinvested
quarterly unless
you request a cash distribution. 100% of the Fund's income
dividends are derived
from U.S. government securities and are therefore, exempt from
state and local
income taxes in all states. Please check with your tax advisor.
We thank you for your investment and we will work hard to
preserve your
assets and provide competitive returns in the Treasury money
market funds arena.
We are available to answer any questions you may have. Call us at
1-800-GABELLI
(1-800-422-3554).
Sincerely,
/s/ Ronald S. Eaker
Ronald S. Eaker
Vice President,
Portfolio Manager
/s/ Bruce N. Alpert
Bruce N. Alpert
Vice President &
Treasurer
May 1, 1995
<PAGE>
THE GABELLI U.S. TREASURY MONEY MARKET FUND
Statement of Net Assets
March 31, 1995 (Unaudited)
==================================================================
==============
Face Maturity
Amount Yield Date
Value
------ ----- ----
- -----
U.S. GOVERNMENT OBLIGATIONS -- 98.22%
$15,845,000 U.S. Treasury Bills ........ 5.54% 04/06/95
$15,832,907
37,940,000 U.S. Treasury Bills ........ 5.67 04/13/95
37,869,260
32,200,000 U.S. Treasury Bills ........ 5.73 04/20/95
32,103,557
14,340,000 U.S. Treasury Bills ........ 5.81 05/04/95
14,264,582
32,325,000 U.S. Treasury Bills ........ 5.86 05/11/95
32,117,456
5,550,000 U.S. Treasury Bills ........ 5.77 05/18/95
5,508,771
12,210,000 U.S. Treasury Bills ........ 5.78 05/25/95
12,105,531
26,915,000 U.S. Treasury Bills ........ 5.82 06/01/95
26,653,656
24,980,000 U.S. Treasury Bills ........ 5.82 06/08/95
24,709,531
13,980,000 U.S. Treasury Bills ........ 5.80 06/15/95
13,813,452
2,900,000 U.S. Treasury Bills ........ 5.77 06/22/95
2,862,448
6,614,000 U.S. Treasury Bills ........ 5.77 06/29/95
6,520,989
10,000,000 U.S. Treasury Bills ........ 6.30 08/10/95
9,777,664
28,700,000 U.S. Treasury Notes ........ 5.86 05/15/95
28,757,549
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Total U.S. Government Obligations
(Cost $262,897,353) ........................................
262,897,353
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TOTAL INVESTMENTS (98.22%)
(Cost $262,897,353+) ........................................
262,897,353
Cash and Other Assets in excess of Liabilities (1.78%) ........
4,769,013
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NET ASSETS -- 100.00% (applicable to 267,666,366 shares of
beneficial interest issued and outstanding, $.001 par value,
one billion shares authorized) ..............................
$ 67,666,366
- ------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE.......
$ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
The accompanying notes are an integral part of the financial
statements.
<PAGE>
THE GABELLI U.S. TREASURY MONEY MARKET FUND
Statement of Operations
Six Months Ended March 31, 1995 (Unaudited)
<TABLE>
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<S>
<C>
Investment Income (Note 1):
Interest
..................................................................
.. $5,480,598
- ----------
Expenses:
Investment advisory fee (Note 3)
............................................ 237,804
Registration fees
...........................................................
24,806
Transfer and shareholder servicing agent
.................................... 24,027
Legal and auditing
..........................................................
22,500
Reports to shareholders
.....................................................
18,145
Trustees' fees
..............................................................
12,500
Amortization of organization expenses
....................................... 10,452
Custodian fees and expenses
.................................................
8,642
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Total expenses before expenses reimbursed by Adviser
...................... 358,876
Expenses reimbursed by Adviser
............................................ (118,902)
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Total expenses -- net
.....................................................
239,974
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Investment income -- net
..................................................
5,240,624
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Net Realized and Unrealized Gain on Investments:
Net realized gain on investments
............................................ 36,912
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Net increase in net assets resulting from operations
...................... $ 5,277,536
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Statement of Changes in Net Assets (Unaudited)
==================================================================
=====================================
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 1995 September 30, 1994
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<S>
<C> <C>
Change in Net Assets:
Investment income-- net ......................................
$ 5,240,624 $ 5,942,885
Net realized gain on investments .............................
36,912 44,354
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Net increase in net assets resulting from operations .......
5,277,536 5,987,239
Dividends to shareholders from net investment income .........
(5,240,624) (5,942,885)
Distributions to shareholders from net realized gains ........
(36,912) (44,354)
Share transactions:
Shares sold ................................................
587,971,686 827,577,627
Shares Issued on reinvestment of dividends and distributions
5,044,241 5,684,079
Shares redeemed ............................................
(511,369,992) (834,950,737)
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Net increase in net assets .................................
81,645,935 (1,689,031)
Net Assets:
Beginning of period ..........................................
186,020,431 187,709,462
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End of period ................................................
$ 267,666,366 $ 186,020,431
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</TABLE>
The accompanying notes are an integral part of the financial
statements.
<PAGE>
THE GABELLI U.S. TREASURY MONEY MARKET FUND
Notes to Financial Statements (Unaudited)
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==============
1. Significant Accounting Policies. The Gabelli U.S. Treasury
Money Market Fund
(the "Fund") is a series of The Gabelli Money Market Funds, a
Delaware business
trust (the "Trust"). The Fund is an open-end, diversified,
management investment
company registered under the Investment Company Act of 1940, as
amended. The
Fund commenced operations on October 1, 1992. The following
is a summary of
significant accounting policies followed by the Fund.
Security Valuation. Investments are valued at amortized cost
(which approximates
market value) whereby, a portfolio instrument is valued at cost
and any discount
or premium is amortized on a constant basis to the maturity of the
instrument.
Security Transactions and Investment Income. Securities
transactions are
accounted for on the dates the securities are purchased or
sold (the trade
dates) with realized gain or loss on investments determined by
using specific
identification as the cost method. Interest income (including
amortization of
premium and discount) is recorded as earned.
Federal Income Taxes. The Fund intends to continue to qualify
as a "regulated
investment company" under Subchapter M of the Internal Revenue
Code of 1986 and
intends to distribute all of its taxable income to its
shareholders. Therefore,
no Federal income tax provision is required. In addition, by
distributing during
each calendar year substantially all of its net investment
income and net
capital gains, if any, the Fund will not be subject to Federal
excise tax.
Dividends and Distributions. Dividends from investment
income (including
realized capital gains and losses) are declared daily and paid
quarterly.
2. Investment Management Contract. The Trust employs Gabelli
Funds, Inc. (the
"Manager") to provide a continuous investment program for the
Fund's portfolio,
provide all facilities and personnel, including officers,
required for its
administrative management and pay the compensation for all
officers and Trustees
of the Fund who are its affiliates. As compensation for the
services rendered
and the related expenses borne by the Manager, the Trust pays the
Manager a fee,
computed daily and payable monthly, equal to .30% per annum
of the Fund's
average daily net assets, payable out of the Fund's net assets.
To the extent
necessary, the Manager has undertaken to assume certain expenses
of the Trust so
that the total expenses of the Fund do not exceed .30% of the
Fund's average
daily net assets. For the six months ended March 31, 1995, the
Manager waived
investment management fees of $118,902. The investment
management contract
expired August 18, 1994. Subsequent to that date the manager
agreed to provide
services without compensation until the Trustees' approval of a
new investment
management contract identical to the terms of the original
contract which
occurred on November 16, 1994. Such contract was
subsequently approved by
shareholders on December 17, 1994.
3. Organization Expenses. The Manager has advanced all
organizational and
start-up expenses of the Fund and has been reimbursed for such by
the Fund. The
organization expenses are being amortized on a straight-line basis
over a period
<PAGE>
THE GABELLI U.S. TREASURY MONEY MARKET FUND
Notes to Financial Statements (Unaudited)(Continued)
==================================================================
==============
of 60 months. The Manager has agreed that in the event that any
of the initial
100,000 shares it owns are redeemed during the period of
amortization of the
Fund's organization and start-up expenses, the redemption
proceeds will be
reduced by any such unamortized organizational expenses in the
same proportion
as the number of initial shares being redeemed bears to the
number of initial
shares outstanding at the time of redemption.
4. Financial Highlights.
<TABLE>
<CAPTION>
October 1, 1992
(Commencement
Six Months Ended Year Ended of Operations) to
March 31, 1995 September 30, 1994 September 30, 1993
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<S>
<C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of year
................................... $1.0000
$1.0000 $1.0000
Income from investment operations:
Net investment income
............................................. 0.0256
0.0325 0.0271
Net gain on investments
........................................... 0.0000
0.0002 0.0002
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Total from investment operations
.................................. 0.0256
0.0327 0.0273
Less Distributions:
Dividends from net investment income
.............................. (0.0256) (0.0325)
(0.0271)
Dividends from net realized gain on investments
................... 0.0000 (0.0002)
(0.0002)
- -------- -------- --------
Total distributions
............................................... (0.0256)
(0.0327) (0.0273)
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Net asset value, end of year
......................................... $1.0000
$1.0000 $1.0000
======== ======== ========
Total Return
.........................................................
5.24% 3.29% 2.76%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)
.............................. $267,666 $186,020
$185,895
Ratios to average net assets:
Investment income-- net+
.......................................... 5.13%*
3.23% 2.73%
Operating expenses-- net+
......................................... 0.23%*
0.30% 0.30%
- ------------
+ Net of expenses waived equivalent to 0.12%, 0.13% and 0.16%.
* Annualized.
</TABLE>
<PAGE>
Gabelli U.S. Treasury
Money Market Fund
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
Board of Trustees
Mario J. Gabelli, CFA
Chairman and President
Anthony J. Colavita
Attorney-at-Law
Anthony J. Colavita, P.C.
Vincent D. Enright
Senior Vice President and
Chief Financial Officer
Brooklyn Union Gas Company
Thomas E. O'Connor
General Partner
Gabelli-O'Connor Fixed Income
Mutual Funds Management Company
John J. Parker
Attorney-at-Law
McCarthy, Fingar, Donovan,
Drazen & Smith
Karl Otto Pohl
Former President
Deutsche Bundesbank
Anthonie C. van Ekris
Managing Director
BALMAC International, Inc.
Officers
Mario J. Gabelli, CFA
Chairman and
President
J. Hamilton Crawford, Jr.
Secretary
Ronald S. Eaker
Vice President and
Portfolio Manager
Bruce N. Alpert
Vice President and
Treasurer
Henley L. Smith
Vice President
Distributor
Gabelli & Company, Inc.
Custodian, Transfer Agent and Dividend Agent
State Street Bank and Trust Company
Legal Counsel
Willkie Farr & Gallagher
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These financial statements are submitted for the general
information of the
shareholders of The Gabelli U.S. Treasury Money Market Fund.
They are not
authorized for distribution to prospective investors unless
preceded or
accompanied by an effective prospectus.
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