<PAGE>
LETTER TO THE SHAREHOLDERS OF THE JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
June 15, 1995
Dear Shareholder:
We are pleased to report that, for the six months ended April 30, 1995, The JPM
Institutional Treasury Money Market Fund outperformed its benchmark, the
Donoghue U.S. Treasury & Repo Money Market Fund Average. The Fund returned 2.75%
versus a benchmark return of 2.48%. We believe the Portfolio's conservative
strategy and security selection contributed to the Fund's return for the period
and has helped it to consistently outperform its benchmark since its inception
on January 4, 1993 (see table on page 4).
The Fund's net asset value remained $1.00 per share. The Fund's net assets were
approximately $88.1 million at the end of the reporting period. The net assets
of The Treasury Money Market Portfolio, in which the Fund invests, totaled
approximately $244.5 million on April 30, 1995.
MARKET ENVIRONMENT
Yields rose on Treasuries of all maturities after the Federal Reserve raised the
Federal funds rate by 0.75% at the end of 1994. The difference or "spread" in
yield between overnight and one-year money market instruments remained wide, as
investors continued to anticipate further Federal Reserve interest rate
increases.
The spread between short- and longer-term issues narrowed when investors became
convinced that any further Federal Reserve action might remain on hold for the
rest of the year. Gross Domestic Product data at April month end confirmed that
economic growth remained slow, and we expected growth to continue to be below
average for the second quarter of 1995 -- an expectation that has been met. In
addition, U.S. Treasury purchases by foreign central banks decreased as the
dollar stabilized.
PORTFOLIO REVIEW
Morgan systematically draws upon proprietary economic research in order to
allocate assets and control the Portfolio's maturity structure. Our portfolio
managers actively allocate the Portfolio's investments among Treasury securities
and government repurchase agreements in order to increase the potential for
achieving higher returns.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
LETTER TO THE SHAREHOLDERS. . . . 1 FUND PERFORMANCE. . . . . . 4
FUND FACTS AND HIGHLIGHTS . . . . 3 FINANCIAL STATEMENTS. . . . 6
- --------------------------------------------------------------------------------
1
<PAGE>
Given our expectation that further rate increases would be implemented by the
Federal Reserve during the fourth quarter of 1994, we positioned the Portfolio
defensively with a shorter target average life of 30 days relative to Donoghue's
average maturity of 36 days. In general, shorter maturity securities
outperformed longer-term instruments in the rising interest rate environment.
However, as rates began to stabilize during the first quarter of 1995, we
extended the Portfolio's target average life to 45 days, which we view as
neutral for the Portfolio. In April, we extended the target average life again,
to a range of 45 to 50 days, as it appeared there would not be any near-term
tightening by the Federal Reserve.
The Portfolio's allocation to repurchase agreements helped performance during
the period by providing attractive yields.
INVESTMENT OUTLOOK
With Treasuries of all maturities yielding less than overnight repurchase
agreements, we continue to maintain a barbell structure in the Portfolio, which
means that investments were concentrated in both shorter-term instruments (such
as overnight repurchase agreements) and in longer-term issues having maturities
of approximately one year. If the dollar remains stable and foreign central bank
buying diminishes, we would expect the spread in yield between short-coupon
instruments and Treasury bills to narrow. In that event, the Portfolio would be
likely to sell a portion of its holdings of overnight repurchase agreements and
buy Treasury bills.
As always, we welcome your comments or questions. Please call J.P. Morgan Funds
Services toll free at (800) 766-7722.
Sincerely,
/s/ EVELYN E. GUERNSEY
Evelyn E. Guernsey
J.P. Morgan Funds Services
2
<PAGE>
FUND FACTS
INVESTMENT OBJECTIVE
The JPM Institutional Treasury Money Market Fund seeks to provide current
income, maintain a high level of liquidity and preserve capital. It is designed
for investors who seek to preserve capital and earn current income from a
portfolio of direct obligations of the U.S. Treasury and repurchase agreements.
- ---------------------------------------------
COMMENCEMENT OF OPERATIONS
1/4/93
- ---------------------------------------------
NET ASSETS AS OF 4/30/95
$88,131,654
- ---------------------------------------------
DIVIDEND PAYABLE DATES
MONTHLY
- ---------------------------------------------
CAPITAL GAIN PAYABLE DATE (IF APPLICABLE)
12/18/95
EXPENSE RATIO The Fund's current annualized expense ratio of 0.20% covers
shareholders' expenses for custody, tax reporting, investment advisory and
shareholder services, after reimbursement. The Fund is no-load and does not
charge any sales, redemption, or exchange fees. There are no additional charges
for buying, selling, or safekeeping Fund shares, or for wiring redemption
proceeds from the Fund.
FUND HIGHLIGHTS
ALL DATA AS OF APRIL 30, 1995
[PIE CHART]
DAYS TO MATURITY
(PERCENTAGE OF TOTAL INVESTMENTS)
Pie chart depicting allocation of the Fund's investment securities held at
April 30, 1995 by days to maturity. The chart is broken in pieces to
represent the following percentages:
0-30 DAYS 57.2%
31-60 DAYS 10.3%
61-90 DAYS 0.0%
90+ DAYS 32.5%
AVERAGE 7-DAY YIELD
5.87%
AVERAGE MATURITY
45 DAYS
3
<PAGE>
FUND PERFORMANCE
EXAMINING PERFORMANCE
One way to look at performance is to review a fund's average annual total
return. This figure takes a fund's actual (or cumulative) return and shows you
what would have happened if the fund had achieved that return by performing at a
constant rate each year. Average annual total returns represent the average
yearly change of a fund's value over various time periods, typically 1, 5, or 10
years (or since inception). Total returns for periods of less than one year are
not annualized and provide a picture of how a fund has performed over the short
term.
<TABLE>
<CAPTION>
PERFORMANCE TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
---------------------------------------------------------------------------
THREE YEAR ONE FIVE SINCE
AS OF APRIL 30, 1995 MONTHS TO DATE YEAR YEARS INCEPTION*
- ---------------------------------------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C>
The JPM Institutional Treasury
Money Market Fund 1.43% 1.89% 4.91% -- 3.74%
Donoghue's U.S. Treasury & Repo
Money Market Fund Average 1.31% 1.71% 4.36% -- 3.35%
As of March 31, 1995
- ---------------------------------------------------------------------- ----------------------------------------
The JPM Institutional Treasury
Money Market Fund 1.40% 1.40% 4.69% -- 3.65%
Donoghue's U.S. Treasury & Repo
Money Market Fund Average 1.26% 1.26% 4.15% -- 3.28%
<FN>
*1/4/93 -- COMMENCEMENT OF OPERATIONS (AVERAGE ANNUAL TOTAL RETURNS BASED ON
MONTH END FOLLOWING INCEPTION)
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. ALL RETURNS ASSUME THE
REINVESTMENT OF DISTRIBUTIONS AND REFLECT REIMBURSEMENT OF CERTAIN FUND AND
PORTFOLIO EXPENSES AS DESCRIBED IN THE PROSPECTUS. THE JPM INSTITUTIONAL
TREASURY MONEY MARKET FUND INVESTS ALL OF ITS INVESTABLE ASSETS IN THE TREASURY
MONEY MARKET PORTFOLIO, A SEPARATELY REGISTERED INVESTMENT COMPANY WHICH IS NOT
AVAILABLE TO THE PUBLIC BUT ONLY TO OTHER COLLECTIVE INVESTMENT VEHICLES SUCH AS
THE FUND.
</TABLE>
4
<PAGE>
SIGNATURE BROKER-DEALER SERVICES, INC. IS THE DISTRIBUTOR OF THE JPM
INSTITUTIONAL TREASURY MONEY MARKET FUND (THE "FUND").
MORGAN GUARANTY TRUST COMPANY OF NEW YORK ("MORGAN") SERVES AS PORTFOLIO
INVESTMENT ADVISOR AND MAKES THE FUND AVAILABLE SOLELY IN ITS CAPACITY AS
SHAREHOLDER SERVICING AGENT FOR CUSTOMERS. INVESTMENTS IN THE FUND ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, MORGAN OR ANY OTHER
BANK. SHARES OF THE FUND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER GOVERNMENTAL
AGENCY. ALTHOUGH THE FUND SEEKS TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00
PER SHARE, THERE IS NO ASSURANCE THAT IT WILL BE ABLE TO CONTINUE TO DO SO.
Performance data quoted herein represent past performance. Please remember that
past performance is not a guarantee of future performance. Fund returns are net
of fees, assume the reinvestment of Fund distributions, and reflect the
reimbursement of Fund expenses. Had expenses not been subsidized, returns would
have been lower. The Fund invests all of its investable assets in The Treasury
Money Market Portfolio, a separately registered investment company which is not
available to the public but only to other collective investment vehicles such as
the Fund.
MORE COMPLETE INFORMATION ABOUT THE FUND, INCLUDING MANAGEMENT FEES AND OTHER
EXPENSES, IS PROVIDED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE
INVESTING. YOU MAY OBTAIN ADDITIONAL COPIES OF THE PROSPECTUS BY CALLING J.P.
MORGAN FUNDS SERVICES AT (800) 766-7722.
5
<PAGE>
THE JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The Treasury Money Market Portfolio $ 88,618,798
("Portfolio"), at value (Note 1)
Receivable for Expense Reimbursements (Note 2b) 69,194
Deferred Organization Expense (Note 1d) 57,309
Prepaid Expenses 435
------------
Total Assets 88,745,736
------------
LIABILITIES
Dividend Payable 508,486
Shareholder Servicing Fee Payable (Note 2c) 70,811
Administration Fee Payable (Note 2a) 2,415
Fund Services Fee Payable (Note 2d) 992
Accrued Expenses 31,378
------------
Total Liabilities 614,082
------------
NET ASSETS
Applicable to 88,113,453 Shares of Beneficial Interest $ 88,131,654
Outstanding
(unlimited authorized shares, par value $0.001)
------------
------------
Net Asset Value, Offering and Redemption Price Per Share $1.00
ANALYSIS OF NET ASSETS
Paid-In Capital $ 88,113,453
Accumulated Net Realized Gain on Investment 18,201
------------
Net Assets $ 88,131,654
------------
------------
</TABLE>
See Accompanying Notes.
6
<PAGE>
THE JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO (NOTE 1B)
$2,667,801
Allocated Interest Income
(92,977)
Allocated Portfolio Expenses (Net of Additional Fund
Reimbursements of $32 and Portfolio Reimbursements of
$31,788)
----------
2,574,824
Net Investment Income Allocated from Portfolio
FUND EXPENSES
Shareholder Servicing Fee (Note 2c) $ 51,117
Registration Fees 21,650
Administration Fee (Note 2a) 12,800
Transfer Agent Fee 12,474
Amortization of Organization Expenses (Note 1d) 10,337
Printing 9,558
Professional Fees 6,548
Fund Services Fee (Note 2d) 4,769
Trustees' Fees and Expenses (Note 2e) 678
Miscellaneous 1,440
---------
Total Fund Expenses 131,371
Less: Reimbursements of Expenses (Note 2b) (131,371)
---------
0
NET FUND EXPENSES
----------
2,574,824
NET INVESTMENT INCOME
20,696
NET REALIZED GAIN ON INVESTMENTS ALLOCATED FROM PORTFOLIO
----------
$2,595,520
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
----------
----------
</TABLE>
See Accompanying Notes.
7
<PAGE>
THE JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE FISCAL
APRIL 30, YEAR ENDED
1995 OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) 1994
------------- ---------------
<S> <C> <C>
FROM OPERATIONS
Net Investment Income $ 2,574,824 $ 2,225,816
Net Realized Gain (Loss) on Investments Allocated from
Portfolio 20,696 (2,067)
------------- ---------------
Net Increase in Net Assets Resulting from Operations 2,595,520 2,223,749
------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (2,574,824) (2,225,816)
Net Realized Gain 0 (5,253)
------------- ---------------
Total Distributions to Shareholders (2,574,824) (2,231,069)
------------- ---------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST (AT A
CONSTANT $1.00 PER SHARE)
Proceeds from Shares of Beneficial Interest Sold 321,442,595 114,320,626
Reinvestment of Dividends and Distributions 968,907 928,479
Cost of Shares of Beneficial Interest Redeemed (314,446,741) (60,572,235)
------------- ---------------
Net Increase from Transactions in Shares of Beneficial
Interest 7,964,761 54,676,870
------------- ---------------
Total Increase in Net Assets 7,985,457 54,669,550
NET ASSETS
Beginning of Period 80,146,197 25,476,647
------------- ---------------
End of Period $88,131,654 $ 80,146,197
------------- ---------------
------------- ---------------
</TABLE>
See Accompanying Notes.
8
<PAGE>
THE JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE JANUARY 4, 1993
SIX MONTHS ENDED FOR THE FISCAL (COMMENCEMENT
APRIL 30, 1995 YEAR ENDED OF OPERATIONS)
(UNAUDITED) OCTOBER 31, 1994 TO OCTOBER 31, 1993
---------------- ------------------- -------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.0272 0.0354 0.0220
Net Realized Gain (Loss) Allocated from Portfolio 0.0000(a) (0.0000)(a) 0.0000(a)
------- ------- -------
0.0272 0.0354 0.0220
------- ------- -------
LESS DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.0272) (0.0354) (0.0220)
Net Realized Gain 0.0000 (0.0001) 0.0000
------- ------- -------
Total Distributions to Shareholders (0.0272) (0.0355) (0.0220)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
------- ------- -------
------- ------- -------
Total Return 2.75%(b) 3.61% 2.23%(b)
------- ------- -------
------- ------- -------
RATIOS AND SUPPLEMENTAL DATA
Net Assets at end of Period (in thousands) $ 88,132 $ 80,146 $ 25,477
Ratios to Average Net Assets:
Expenses 0.20%(c) 0.20% 0.27%(c)
Net Investment Income 5.54%(c) 3.81% 2.81%(c)
Decrease Reflected in Expense ratio due to
Reimbursement by Morgan 0.35%(c) 0.47% 0.76%(c)
<FN>
- -------------------
(a) Less than $0.0001
(b) Not Annualized
(c) Annualized
</TABLE>
See Accompanying Notes.
9
<PAGE>
THE JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES:
The JPM Institutional Treasury Money Market Fund (the "Fund") is a separate
series of The JPM Institutional Funds, a Massachusetts business trust (the
"Trust"). The Trust is registered under the Investment Company Act of 1940, as
amended, as a diversified open-end management investment company. The Fund
commenced operations on January 4, 1993.
The Fund invests all of its investable assets in The Treasury Money Market
Portfolio (the "Portfolio"), a diversified open-end management investment
company having the same investment objectives as the Fund. The value of such
investment reflects the Fund's proportionate interest in the net assets of the
Portfolio (36% at April 30, 1995). The performance of the Fund is directly
affected by the performance of the Portfolio. The financial statements of the
Portfolio, including the schedule of investments, are included elsewhere in this
report and should be read in conjunction with the Fund's financial statements.
The following is a summary of the significant accounting policies of the
Fund:
a)Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statements which are included elsewhere in
this report.
b)The Fund records its share of net investment income, realized gain and
loss and adjusts its investment in the Portfolio each day. All the net
investment income and realized gain and loss of the Portfolio is allocated
pro rata among the Fund and other investors in the Portfolio at the time
of such determination.
c)All the Fund's net investment income is declared as dividends daily and
paid monthly. Distributions to shareholders of net realized capital gain,
if any, are declared and paid annually.
d)The Fund incurred organization expenses in the amount of $104,282. These
costs were deferred and are being amortized by the Fund on a straight-line
basis over a five-year period from the commencement of operations.
e)Each series of the Trust is treated as a separate entity for federal
income tax purposes. The Fund intends to comply with the provisions of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its income,
including net realized capital gains, if any, within the prescribed time
periods. Accordingly, no provision for federal income or excise tax is
necessary.
f)Expenses incurred by the Trust with respect to any two or more funds in
the Trust are allocated in proportion to the net assets of each fund in
the Trust, except where allocations of direct expenses to each fund can
otherwise be made fairly. Expenses directly attributable to a fund are
charged to that fund.
g)For United States Federal income tax purposes the Fund had a capital loss
carryforward at October 31, 1994 of $2,067 which will expire in the year
2002. No capital gains distribution is expected to be paid to shareholders
until future net gains have been realized in excess of such carryforward.
10
<PAGE>
THE JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Trust retains Signature Broker-Dealer Services, Inc. ("Signature") to
serve as Administrator and Distributor. Signature provides administrative
services necessary for the operations of the Fund, furnishes office space
and facilities required for conducting the business of the Fund and pays
the compensation of the Fund's officers affiliated with Signature. The
agreement provides for a fee to be paid to Signature at an annual rate
determined by the following schedule: 0.04% of the first $1 billion of the
aggregate average daily net assets of the Trust, as well as two other
affiliated fund families for which Signature acts as administrator, 0.032%
of the next $2 billion of such net assets, 0.024% of the next $2 billion
of such net assets, and 0.016% of such net assets in excess of $5 billion.
The daily equivalent of the fee rate is applied daily to the net assets of
the Fund. For the six months ended April 30, 1995, Signature's fee
amounted to $12,800.
b)The Trust, on behalf of the Fund, has a Financial and Fund Accounting
Services Agreement ("Services Agreement") with Morgan Guaranty Trust
Company of New York ("Morgan") under which Morgan receives a fee, based on
the percentage described below, for overseeing certain aspects of the
administration and operation of the Fund. The Services Agreement is also
designed to provide an expense limit for certain expenses of the Fund. If
total expenses of the Fund, excluding the shareholder servicing fee, the
fund services fee and amortization of organization expenses, exceed the
expense limit of 0.05% of the Fund's average daily net assets, Morgan will
reimburse the Fund for the excess expense amount and receive no fee.
Should such expenses be less than the expense limit, Morgan's fee would be
limited to the difference between such expenses and the fee calculated
under the Services Agreement. For the six months ended April 30, 1995,
Morgan agreed to reimburse the Fund $41,900 for excess expenses. In
addition to the expenses that Morgan assumes under the Services Agreement,
Morgan has agreed to reimburse the Fund to the extent necessary to
maintain the total operating expenses of the Fund, including the expenses
allocated to the Fund from the Portfolio, at no more than 0.20% of the
average daily net assets of the Fund through October 31, 1995. For the six
months ended April 30, 1995 Morgan has agreed to reimburse the Fund
$89,471 and an additional $32 for excess expenses allocated from the
Portfolio.
c)The Trust, on behalf of the Fund, has a Shareholder Servicing Agreement
with Morgan. The Agreement provides for the Fund to pay Morgan a fee for
these services which is computed daily and may be paid monthly at an
annual rate of 0.11% of the average daily net assets of the Fund. For the
six months ended April 30, 1995, the fee for these services amounted to
$51,117.
d)The Trust, on behalf of the Fund, has a Fund Services Agreement with
Pierpont Group, Inc. ("Group") to assist the Trustees in exercising their
overall supervisory responsibilities for the Trust's affairs. The Trustees
of the Trust represent all the existing shareholders of Group. The Fund's
allocated portion of Group's costs in performing its services amounted to
$4,769 for the six months ended April 30, 1995.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of The Pierpont Funds, The JPM Institutional Funds and their
corresponding Portfolios. The Trustees' Fees and Expenses shown in the
financial statements represent the Fund's allocated portion of the total
fees and expenses. Prior to April 1, 1995, the aggregate annual Trustee
Fee was $55,000. The Trustee
11
<PAGE>
THE JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
who serves as Chairman and Chief Executive Officer of these Funds and
Portfolios also serves as Chairman of Group and received compensation and
employee benefits from Group in his role as Group's Chairman. The
allocated portion of such compensation and benefits included in the Fund
Services Fee shown in the financial statements was $600.
12
<PAGE>
The Treasury Money Market Portfolio
Semi-Annual Report April 30, 1995
(unaudited)
(The following pages should be read in conjunction
with The JPM Institutional Treasury Money Market Fund
Semi-Annual Financial Statements)
13
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL YIELD TO
AMOUNT MATURITY MATURITY/ VALUE
(IN THOUSANDS) SECURITY DESCRIPTION DATE COUPON (NOTE 1A)
- -------------- ---------------------------------------- -------- --------- ------------
<C> <S> <C> <C> <C>
U. S. TREASURY OBLIGATIONS ( 48.8%)
$ 10,000 United States Treasury Bills
05/04/95 5.300 % $ 9,995,088
10,000 United States Treasury Strip (Principal
Only)
02/15/96 6.166 9,530,219
55,000 United States Treasury Notes
07/31/95 4.250 54,743,151
25,000 United States Treasury Notes
05/31/95 4.125 24,959,474
15,000 United States Treasury Notes
08/15/95 4.625 14,937,891
5,000 United States Treasury Notes
05/15/95 5.875 4,999,238
------------
Total U.S. Treasury Obligations (amortized cost $119,165,061)
119,165,061
------------
REPURCHASE AGREEMENTS (50.7%)
Goldman Sachs Repurchase Agreement dated 4/28/95
due 5/1/95, proceeds $124,107,990
(collateralized by
124,047 $277,977,000 U.S. Treasury Strips 0.00%, due
5/15/99-8/15/00
valued at $126,528,335)(cost $124,047,000) 5.900 124,047,000
------------
TOTAL INVESTMENTS (COST $243,212,061) (99.5%)
243,212,061
OTHER ASSETS IN EXCESS OF LIABILITIES (0.5%)
1,268,062
------------
NET ASSETS (100.0%) $244,480,123
------------
------------
</TABLE>
See Accompanying Notes.
14
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments at Amortized Cost and Value (Note 1a) $119,165,061
Repurchase Agreement at Cost and Value (Note 1a) 124,047,000
Interest Receivable 1,352,029
Receivable for Expense Reimbursements (Note 2c) 37,722
Deferred Organization Expenses (Note 1d) 14,887
Prepaid Insurance 991
------------
Total Assets 244,617,690
------------
LIABILITIES
Advisory Fee Payable (Note 2a) 59,022
Custody Fee Payable 41,176
Fund Services Fee Payable (Note 2d) 2,102
Administration Fee Payable (Note 2b) 1,635
Accrued Expenses 33,632
------------
Total Liabilities 137,567
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $244,480,123
------------
------------
</TABLE>
See Accompanying Notes.
15
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B)
$6,447,961
Interest
EXPENSES
Advisory Fee (Note 2a) $225,545
Custodian Fees and Expenses 26,992
Professional Fees 22,676
Fund Services Fee (Note 2d) 11,953
Administration Fee (Note 2b) 7,624
Trustees' Fees and Expenses (Note 2e) 2,745
Amortization of Organization Expenses (Note 1d) 2,715
Miscellaneous 2,385
--------
Total Expenses 302,635
LESS: REIMBURSEMENT OF EXPENSES (NOTE 2C) (77,090)
--------
225,545
NET EXPENSES
----------
6,222,416
NET INVESTMENT INCOME
53,383
NET REALIZED GAIN ON INVESTMENTS
----------
$6,275,799
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS
----------
----------
</TABLE>
See Accompanying Notes.
16
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED
FOR THE FISCAL FOR THE FISCAL
APRIL 30, 1995 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1994
------------------ --------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 6,222,416 $ 6,192,242
Net Realized Gain (Loss) on Investments 53,383 (6,960)
------------------ --------------------
Net Increase in Net Assets Resulting from Operations 6,275,799 6,185,282
------------------ --------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 929,817,601 717,721,291
Withdrawals (890,910,798) (633,408,231)
------------------ --------------------
Net Increase from Investors' Transactions 38,906,803 84,313,060
------------------ --------------------
Total Increase in Net Assets 45,182,602 90,498,342
NET ASSETS
Beginning of Period 199,297,521 108,799,179
------------------ --------------------
End of Period $ 244,480,123 $ 199,297,521
------------------ --------------------
------------------ --------------------
- -------------------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- -------------------------------------------------------------------------------------------
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE FISCAL
APRIL 30, 1995 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1994
------------------ --------------------
<S> <C> <C>
Ratios to Average Net Assets
Expenses 0.20%(a) 0.22 %
Net Investment Income 5.52 (a) 3.65 %
Decrease Reflected in above Expense Ratio due to Expense
Reimbursements by Morgan 0.07 (a) 0.05 %
<FN>
- ------------------------
(a) Annualized
</TABLE>
See Accompanying Notes.
17
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Treasury Money Market Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, (the "Act") 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 Portfolio commenced
operations on January 4, 1993. The Declaration of Trust permits the Trustees to
issue an unlimited number of beneficial interests in the Portfolio.
The following is a summary of the significant accounting policies of the
Portfolio:
a)Investments are valued at amortized cost which approximates market value.
The amortized cost method of valuation values a security at its cost at
the time of purchase and thereafter assumes a constant amortization to
maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the market value of the instruments.
The Portfolio's custodian or designated subcustodians, as the case may be,
under triparty repurchase agreements takes possession of the collateral
pledged for investments in repurchase agreements on behalf of the
Portfolio. It is the policy of the Portfolio to value the underlying
collateral daily on a mark-to-market basis to determine that the value,
including accrued interest, is at least equal to the repurchase price plus
accrued interest. In the event of default of the obligation to repurchase,
the Portfolio has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Under certain circumstances,
in the event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral or proceeds may be subject
to legal proceedings.
b)Securities transactions are recorded on a trade date basis. Investment
income consists of interest income, which includes the amortization of
premiums and discounts. For financial and tax reporting purposes, realized
gains and losses are determined on the basis of specific lot
identification.
c)The Portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the Portfolio will be subject to
taxation on its share of the Portfolio's ordinary income and capital
gains. It is intended that the Portfolio's assets will be managed in such
a way that an investor in the Portfolio will be able to satisfy the
requirements of Subchapter M of the Internal Revenue Code. The cost of
securities is substantially the same for book and tax purposes.
d)The Portfolio incurred organization expenses in the amount of $27,491.
These costs were deferred and are being amortized by the Portfolio on a
straight-line basis over a five-year period from the commencement of
operations.
18
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES:
a)The Portfolio has an investment advisory agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the investment
advisory agreement, the Portfolio pays Morgan at an annual rate of 0.20%
of the Portfolio's average daily net assets up to $1 billion, and 0.10% on
any excess over $1 billion. For the six months ended April 30, 1995, this
fee amounted to $225,545.
b)The Portfolio has retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as Administrator and exclusive placement agent.
Signature provides administrative services necessary for the operations of
the Portfolio, furnishes office space and facilities required for
conducting the business of the Portfolio and pays the compensation of the
Portfolio's officers affiliated with Signature. The agreement provides for
a fee to be paid to Signature at an annual fee rate determined by the
following schedule: 0.01% of the first $1 billion of the aggregate average
daily net assets of the Portfolio and the other portfolios subject to the
Administrative Services Agreement 0.008% of the next $2 billion of such
net assets, 0.006% of the next $2 billion of such net assets, and 0.004%
of such net assets in excess of $5 billion. The daily equivalent of the
fee rate is applied to the daily net assets of the Portfolio. For the six
months ended April 30, 1995, Signature's fee for these services amounted
to $7,624.
c)The Portfolio has a Financial and Fund Accounting Services Agreement
("Services Agreement") with Morgan under which Morgan receives a fee,
based on the percentages described below, for overseeing certain aspects
of the administration and operation of the Portfolio. The Services
Agreement is also designed to provide an expense limit for certain
expenses of the Portfolio. If total expenses of the Portfolio, excluding
the advisory fee, custody expenses, fund services fee, amortization of
organization expenses, and brokerage costs, exceed the expense limit of
0.03% of the Portfolio's average daily net assets, Morgan will reimburse
the Portfolio for the excess expense amount and receive no fee. Should
such expenses be less than the expense limit, Morgan's fee would be
limited to the difference between such expenses and the fee calculated
under the Services Agreement. For the six months ended April 30, 1995,
Morgan has agreed to reimburse the Portfolio $1,599 for excess expenses.
In addition to the expenses that Morgan assumes under the Services
Agreement, Morgan has voluntarily agreed to reimburse the Portfolio to the
extent necessary to maintain the total operating expenses of the Portfolio
at no more than 0.20% of the average daily net assets of the Portfolio
through October 31, 1995. For the six months ended April 30, 1995 Morgan
has agreed to reimburse the Portfolio $75,491 for expenses which exceeded
this limit.
d)The Portfolio has a Fund Services Agreement with Pierpont Group, Inc.
("Group") to assist the Trustees in exercising their overall supervisory
responsibilities for the Portfolio's affairs. The Trustees of the
Portfolio represent all the existing shareholders of Group. The
Portfolio's allocated portion of Group's costs in performing its services
amounted to $11,953 for the six months ended April 30, 1995.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of The Pierpont Funds, The JPM Institutional Funds and their
corresponding Portfolios. The Trustees' Fees and Expenses shown in the
financial statements represent the Fund's allocated portion of the total
fees and expenses. Prior to April 1, 1995, the aggregate annual Trustee
Fee was $55,000. The Trustee who serves as Chairman and Chief Executive
Officer of these Funds and Portfolios also serves as Chairman of Group and
received compensation and employee benefits from Group in his role as
Group's Chairman. The allocated portion of such compensation and benefits
included in the Fund Services Fee shown in the financial statements was
$1,400.
19
<PAGE>
JPM INSTITUTIONAL MONEY MARKET FUND
JPM INSTITUTIONAL TAX EXEMPT MONEY MARKET FUND
JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
JPM INSTITUTIONAL SHORT TERM BOND FUND
JPM INSTITUTIONAL BOND FUND
JPM INSTITUTIONAL TAX EXEMPT BOND FUND
JPM INSTITUTIONAL NY TOTAL RETURN BOND FUND
JPM INSTITUTIONAL INTERNATIONAL BOND FUND
JPM INSTITUTIONAL DIVERSIFIED FUND
JPM INSTITUTIONAL SELECTED U.S. EQUITY FUND
JPM INSTITUTIONAL U.S. SMALL COMPANY FUND
JPM INSTITUTIONAL INTERNATIONAL EQUITY FUND
JPM INSTITUTIONAL EMERGING MARKETS EQUITY FUND
THE
JPM
INSTITUTIONAL
TREASURY MONEY
MARKET FUND
FOR MORE INFORMATION ON THE JPM INSTITUTIONAL FAMILY OF FUNDS, CALL J.P. MORGAN
FUNDS SERVICES AT (800)766-7722.
SEMI-ANNUAL REPORT
APRIL 30, 1995
