<PAGE>
LETTER TO THE SHAREHOLDERS OF THE PIERPONT TAX EXEMPT MONEY MARKET FUND
April 15, 1994
Dear Shareholder:
By focusing on high-quality issues and actively managing the Portfolio's
average maturity in a rising rate environment, The Pierpont Tax Exempt Money
Market Fund outperformed its competitive universe for the six months ended
February 28, 1995. During this time, the Fund's 1.59% return slightly
outpaced IBC/Donoghue's Tax Free Money Fund Average of 1.50%. We are also
pleased to report that the Fund outperformed this average for the past one-,
three-, five-, and ten-year periods (see table on page 4). We believe the
Portfolio's investment strategy and commitment to credit research have led
to consistently good long-term returns versus the benchmark.
The Fund has maintained a constant net asset value of $1.00 per share and
paid approximately $0.02 per share in dividends during the period. The Fund's
net assets stood at approximately $1.1 billion at the end of the reporting
period, compared with $974 million on August 31, 1994. The net assets of The
Tax Exempt Money Market Portfolio in which the Fund invests totaled $1.2
billion on February 28, 1995.
MARKET ENVIRONMENT
As economic indicators remained strong and inflationary pressures persisted,
the Federal Reserve continued to tighten monetary policy during the period.
Specifically, the Federal funds rate was increased twice, rising from 4.75%
to 6.00% between September 1994 and February 1995. As a result, short-term
tax-exempt rates also rose. For example, the Fund's 7-day yield increased
from 2.82% on August 31, 1994, to 3.56% at the end of February.
The rise in short-term tax-exempt rates was limited, however, due to supply
and demand factors. Specifically, the supply of money market investments
declined during 1994, as the need for short-term financing decreased with the
improved fiscal position of many municipalities. The low interest rate
environment of 1993 had provided opportunities for municipalities to move
from short- to long-term financing. While supply dwindled, the demand for
money market investments increased.
TABLE OF CONTENTS
LETTER TO THE SHAREHOLDERS.......................1
FUND FACTS AND HIGHLIGHTS........................3
FUND PERFORMANCE.................................4
SPECIAL FUND-BASED SERVICES......................5
FINANCIAL STATEMENTS.............................7
1
<PAGE>
PORTFOLIO REVIEW
Morgan's fixed income specialists systematically analyze short-term interest
rates to actively manage the Portfolio's average maturity relative to
IBC/Donoghue's Tax Free Money Fund Average. During the fourth quarter of 1994,
the Portfolio's average maturity was neutral relative to its benchmark. In
late December, however, we lengthened the average maturity moderately to
capture additional yield. This longer maturity structure also helped the
Portfolio to lock in higher yields as rates declined in the first quarter
of 1995.
An in-house credit research team conducts quantitative and credit analysis to
select individual securities for the Portfolio. During the period, the
Portfolio generally invested in instruments rated in the "top tier" of the
short-term tax-exempt market, as determined by two nationally recognized
credit rating agencies, such as Moody's or Standard & Poor's.
INVESTMENT OUTLOOK
Factors that led to low supply during the period continue to exist. In
light of the decreased supply and high demand, we continue to look for
attractive investment opportunities and new tax-exempt structures. At
the same time, our intensive credit research and emphasis on quality
remain our primary focuses. Since we expect the Federal Reserve may
raise rates again before year end, our continuing objective is to
manage the Portfolio's average maturity to take advantage of these
rate movements.
As always, we welcome your comments or questions. Please call J.P. Morgan
Funds Services toll free at (800) 521-5411.
Sincerely,
/S/ EVELYN E. GUERNSEY
Evelyn E. Guernsey
J.P. Morgan Funds Services
2
<PAGE>
FUND FACTS
INVESTMENT OBJECTIVE
The Pierpont Tax Exempt Money Market Fund seeks to provide a high level of
current income exempt from federal income tax and maintain a high level of
liquidity. It is designed for investors who seek to preserve capital and earn
current income exempt from federal income tax.
_______________________________________________________________________________
INCEPTION DATE
09/12/83
_______________________________________________________________________________
NET ASSETS AS OF 2/28/95
$1,100,869,258
_______________________________________________________________________________
DIVIDEND PAYABLE DATES
MONTHLY
_______________________________________________________________________________
CAPITAL GAIN PAYABLE DATES (IF APPLICABLE)
12/18/95
EXPENSE RATIO
The Fund's annual expense ratio of 0.51% 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 FEBRUARY 28, 1995
PORTFOLIO ALLOCATION
(PERCENTAGE OF TOTAL INVESTMENTS)
Pie chart depicting the allocation of the Fund's investment securities held at
February 28, 1995 by investment categories. The pie is broken in pieces
representing investment categories in the following percentages:
<TABLE>
<CAPTION>
INVESTMENT CATEGORY PERCENTAGE
<S> <C>
Demand notes 58.1%
Revenue bonds 13.3%
Commercial paper 7.5%
Tax revenue anticipation notes 5.6%
Third-party put bonds 4.2%
Revenue anticipation notes 3.7%
Tax anticipation notes 3.6%
General obligation 3.3%
Bond anticipation notes 0.7%
</TABLE>
AVERAGE 7-DAY YIELD
3.56%
AVERAGE MATURITY
46 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 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 THREE FIVE TEN
AS OF FEBRUARY 28, 1995 MONTHS TO DATE YEAR YEARS YEARS YEARS
______________________________________________ ______________________________
<S> <C> <C> <C> <C> <C> <C>
The Pierpont Tax Exempt
Money Market Fund 0.85% 0.54% 2.74% 2.43% 3.32% 4.13%
IBC/Donoghue's Tax Free
Money Fund Average 0.81% 0.53% 2.57% 2.30% 3.22% 4.01%
AS OF DECEMBER 31, 1994
______________________________________________ ______________________________
The Pierpont Tax Exempt
Money Market Fund 0.80% 2.50% 2.50% 2.42% 3.39% 4.16%
IBC/Donoghue's Tax Free
Money Fund Average 0.74% 2.34% 2.34% 2.28% 3.29% 4.04%
</TABLE>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. FUND RETURNS ASSUME
THE REIMBURSEMENT OF DISTRIBUTIONS AND REFLECT REIMBURSEMENT OF CERTAIN FUND
AND PORTFOLIO EXPENSES AS DESCRIBED IN THE PROSPECTUS. IBC/DONOGHUE'S TAX
FREE MONEY FUND AVERAGE IS AN AVERAGE OF ALL MAJOR TAX FREE MONEY MARKET
RETURNS. THIS COMPARATIVE INFORMATION IS AVAILABLE TO THE PUBLIC FROM THE
IBC/DONOGHUE ORGANIZATION, INC. NO REPRESENTATION IS MADE THAT INFORMATION
GATHERED FROM THIS SOURCE IS ACCURATE OR COMPLETE.
4
<PAGE>
SPECIAL FUND-BASED SERVICES
PIERPONT ASSET ALLOCATION SERVICE (PAAS)
For many investors, a diversified portfolio -- including short-term
instruments, bonds, and stocks -- can offer an excellent opportunity to
achieve one's investment objectives. PAAS provides investors with a
comprehensive management program for their portfolios. Through this service,
investors can:
- - - Create and maintain an asset allocation that is specifically targeted at
meeting their most critical investment objectives;
- - - Make ongoing tactical adjustments in the actual asset mix of their
portfolios to capitalize on shifting market trends;
- - - Make investments through The Pierpont Funds, a family of diversified mutual
funds.
PAAS is available to clients who invest a minimum of $500,000 in The Pierpont
Funds.
IRA MANAGEMENT SERVICE
As one of the few remaining investments that can help your assets grow
tax-deferred until retirement, the IRA enables more of your dollars to work
for you longer. Morgan offers an IRA Rollover plan that helps you to build
well-balanced long-term investment portfolios, diversified across a wide
array of mutual funds. From money markets to emerging markets, The Pierpont
Funds provide an excellent way to help you accumulate long-term wealth for
retirement. The IRA Rollover plan is available to clients who invest at least
$10,000 in any given Pierpont Fund.
KEOGH
In early 1995, Morgan introduced a Keogh program for its clients. Keoghs
provide another excellent vehicle to help individuals who are self-employed
or are employees of unincorporated businesses to accumulate retirement savings.
A Keogh is a tax-deferred pension plan that can allow you to contribute the
lesser of $30,000 or 25% of your annual earned gross compensation. The
Pierpont Funds can help you build a comprehensive investment program
designed to maximize the retirement dollars in your Keogh account. The Keogh
plan also requires a minimum investment of $10,000 in any given Pierpont Fund.
5
<PAGE>
MORGAN GUARANTY TRUST COMPANY OF NEW YORK ("MORGAN") SERVES AS PORTFOLIO
INVESTMENT ADVISOR AND MAKES THE PIERPONT TAX EXEMPT MONEY MARKET FUND
(THE "FUND") AVAILABLE SOLELY IN ITS CAPACITY AS SHAREHOLDER SERVICING AGENT
FOR CUSTOMERS. THE FUND'S DISTRIBUTOR IS SIGNATURE BROKER-DEALER SERVICES, INC.
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 CAN BE NO ASSURANCE THAT
IT WILL BE ABLE TO CONTINUE TO DO SO.
The 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 and assume the reinvestment of Fund distributions.
The Fund invests all of its investable assets in The Tax Exempt 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 AN ADDITIONAL COPY OF THE PROSPECTUS BY
CALLING (800) 521-5411.
6
<PAGE>
THE PIERPONT TAX EXEMPT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The Tax Exempt Money Market Portfolio $ 1,104,165,595
("Portfolio"), at value
Receivable for Expense Reimbursements (Note 2b) 48,787
Prepaid Expenses 6,562
---------------
Total Assets 1,104,220,944
---------------
LIABILITIES
Dividend Payable to Shareholders 2,899,585
Shareholder Servicing Fee Payable (Note 2c) 369,773
Administration Fee Payable (Note 2a) 23,694
Fund Services Fee Payable (Note 2d) 11,019
Accrued Expenses 47,615
---------------
Total Liabilities 3,351,686
---------------
NET ASSETS
Applicable to 1,100,789,746 Shares of Beneficial Interest $ 1,100,869,258
Outstanding
(par value $0.001)
---------------
---------------
Net Asset Value, Offering and Redemption Price Per Share $1.00
---------------
---------------
ANALYSIS OF NET ASSETS
Paid-in Capital $ 1,101,134,626
Accumulated Net Realized Loss on Investment (237,827)
Distribution in Excess of Net Realized Gains (27,541)
---------------
Net Assets $ 1,100,869,258
---------------
---------------
</TABLE>
See Accompanying Notes.
7
<PAGE>
THE PIERPONT TAX EXEMPT MONEY MARKET FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO (NOTE 1B)
$ 19,431,093
Allocated Interest Income
(1,299,825)
Allocated Portfolio Expenses
------------
18,131,268
Net Investment Income from Portfolio
EXPENSES
Shareholder Servicing Fee (Note 2c) $ 1,104,303
Administration Fee (Note 2a) 147,266
Fund Services Fee (Note 2d) 53,315
Trustees' Fees and Expenses (Note 2e) 18,083
Registration Fees 14,326
Printing and Postage 33,285
Professional Fees 12,417
Transfer Agent Fee 43,159
Miscellaneous 6,371
-----------
Total Expenses 1,432,525
Less: Reimbursements of Expenses (Note 2b) (48,787)
-----------
1,383,738
NET FUND EXPENSES
------------
16,747,530
NET INVESTMENT INCOME
(224,777)
NET REALIZED LOSS ON INVESTMENTS ALLOCATED FROM PORTFOLIO
------------
$ 16,522,753
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
------------
------------
</TABLE>
See Accompanying Notes.
8
<PAGE>
THE PIERPONT TAX EXEMPT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
FEBRUARY 28, FOR THE FISCAL
1995 YEAR ENDED
(UNAUDITED) AUGUST 31, 1994
--------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 16,747,530 $ 21,221,399
Net Realized Loss from Portfolio (224,777) (13,050)
--------------- ----------------
Net Increase in Net Assets Resulting from Operations 16,522,753 21,208,349
--------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (16,762,126) (21,206,803)
Net Realized Gain -- (128,699)
--------------- ----------------
Total Distributions to Shareholders (16,762,126) (21,335,502)
--------------- ----------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST (AT A CONSTANT
$1.00 PER SHARE)
Proceeds from Shares of Beneficial Interest Sold 2,107,419,630 4,105,836,629
Reinvestment of Dividends and Distributions 14,563,780 19,654,664
Cost of Shares of Beneficial Interest Redeemed (1,994,474,273) (4,159,094,789)
--------------- ----------------
Net Increase (Decrease) from Transactions in Shares of
Beneficial Interest 127,509,137 (33,603,496)
--------------- ----------------
Total Increase (Decrease) in Net Assets 127,269,764 (33,730,649)
NET ASSETS
Beginning of Period 973,599,494 1,007,330,143
--------------- ----------------
End of Period $ 1,100,869,258 $ 973,599,494
--------------- ----------------
--------------- ----------------
</TABLE>
See Accompanying Notes.
9
<PAGE>
THE PIERPONT TAX EXEMPT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------
Selected data for a share outstanding throughout each year are as follows:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
FEBRUARY 28, FOR THE FISCAL YEAR ENDED AUGUST 31,
1995 ------------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
-------------- --------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-------------- --------- ---------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.0158 0.0212 0.0214 0.0317 0.0460 0.0550
Net Realized Gain (Loss) (0.0000)(a) (0.0000)(a) 0.0001 0.0002 (0.0000)(a) (0.0000)(a)
-------------- --------- ---------- --------- --------- ---------
Total from Investment Operations 0.0158 0.0212 0.0215 0.0319 0.0460 0.0550
-------------- --------- ---------- --------- --------- ---------
LESS DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net Investment Income (0.0158) (0.0212) (0.0214) (0.0317) (0.0460) (0.0550)
Net Realized Gains - 0.0000(a) (0.0002) - - 0.0000(a)
-------------- --------- ---------- --------- --------- ---------
Total Distributions to Shareholders (0.0158) (0.0212) (0.0216) (0.0317) (0.0460) (0.0550)
-------------- --------- ---------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-------------- --------- ---------- --------- --------- ---------
-------------- --------- ---------- --------- --------- ---------
Total Return 1.59%(b) 2.14% 2.15% 3.19% 4.60% 5.50%
RATIOS AND SUPPLEMENTAL DATA
Net Assets at end of Period (in
thousands) $1,100,869 $ 973,599 $1,007,330 $ 922,358 $ 877,422 $ 903,157
Ratios to Average Net Assets:
Expenses 0.51%(c) 0.52% 0.52% 0.53% 0.55% 0.57%
Net Investment Income 3.18%(c) 2.10% 2.14% 3.16% 4.60% 5.51%
Decrease reflected in above
Expense
Ratios due to Expense
Reimbursements 0.01%(c) 0.01% 0.01% 0.01% 0.01% -
</TABLE>
- - ------------------------
(a) Less than $0.0001
(b) Not Annualized
(c) Annualized
See Accompanying Notes.
10
<PAGE>
THE PIERPONT TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
The Pierpont Tax Exempt Money Market Fund (the "Fund") is a separate series of
The Pierpont Funds (the "Trust"), a Massachusetts business trust which was
organized on November 4, 1992. The Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified , open-end management
investment company. The Fund, prior to its tax-free reorganization on July 11,
1993, to a series of the Trust, operated as a stand - alone mutual fund. Costs
related to the reorganization were borne by Morgan Guaranty Trust Company of New
York ("Morgan"). This report includes periods which preceded the Fund's
reorganization and reflects the operations of the predecessor entity.
The Fund seeks to achieve its investment objective by investing all of its
investable assets in The Tax Exempt Money Market Portfolio (the "Portfolio"), a
diversified, open-end management company having the same investment objective as
the Fund. The value of such investment included in the Statement of Assets and
Liabilities reflects the Fund's proportionate beneficial interest in the net
assets of the Portfolio (93.8% at February 28, 1995). 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.
1. SIGNIFICANT ACCOUNTING POLICIES
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)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 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.
As of August 31, 1994, the Fund incurred and elected to defer Post-October
losses of approximately $46,000 until the next taxable year. To the extent
that this capital loss is used to offset future capital gains, it is
probable that the gains so offset will not be distributed to shareholders.
e)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.
11
<PAGE>
THE PIERPONT TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
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 fee 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 the net assets
of two other 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 February 28, 1995, the Funds'
portion of Signature's fee for these services amounted to $147,266.
b)The Trust, on behalf of the Fund, has entered into 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 and the fund services fee, exceed the expense limit of 0.043% 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 February 28, 1995, Morgan agreed to reimburse the
Fund $48,787 for excess expenses.
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 0.21% of the average daily net assets of the Fund up to and
including $1.5 billion and 0.16% on any excess over $1.5 billion, which
may be paid no more frequently than monthly. For the six months ended
February 28, 1995, Morgan's fee for these services amounted to $1,104,303.
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 are the sole shareholders of Group. The Fund's allocated
portion of Group's costs in performing its services amounted to $53,315
for the six months ended February 28, 1995.
e)An aggregate annual fee of $55,000 is paid to each Trustee for serving as
a Trustee of the Pierpont Funds, The JPM Institutional Funds, and their
corresponding Portfolios. The Trustee Fees' and Expenses shown in the
financial statements represent the Fund's allocated portion of the total
fees and expenses. On April 1, 1995, the aggregate annual trustee fee was
increased to $65,000. 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 $6,200.
12
<PAGE>
The Tax Exempt Money Market Portfolio
Semi-Annual Report February 28, 1995
(Unaudited)
(The following pages should be read in conjunction
with The Pierpont Tax Exempt Money Market Fund
Semi-Annual Financial Statements)
13
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
ALABAMA (5.3%)
$ 9,500 Evergreen, (Industrial Development Board, IDR,
Polyfelt U.S. Inc. Project, Series 1985) LOC
Creditanstalt-Bankverein........................
VRDN (A) 4.34% $ 9,500,000
9,100 Anniston, (Industrial Development Board, PCR,
Monsanto Co Project, Series 1992)...............
VRDN (A) 4.00 9,100,000
9,000 North Alabama, Environmental Improvement
Authority, (PCR, Reynold Metals Inc., Project,
Series 1985) LOC Bank of Nova Scotia............
VRDN (A) 3.75 9,000,000
7,800 McIntosh, (Industrial Development Authority, IDR,
Ciba Geigy Corp. Project, Series 1986) LOC
Credit Suisse...................................
VRDN (A) 3.80 7,800,000
5,925 Decatur County, (Industrial Development Board,
PCR, Refunding Monsanto Co Project, Series
1990)...........................................
VRDN (A) 4.00 5,925,000
5,300 Red Bay County, (Industrial Development Board, IDR
Refunding, Gates Rubber Co. Project, Series
1987) LOC National Bank of Detroit..............
VRDN (A) 4.32 5,300,000
4,200 Birmingham, (Medical Clinic Board St.
Martins'-in-the-Pines Medical Clinic Revenue
Refunding, St Martins' Project, Series 1989) LOC
Fuji Bank Ltd...................................
VRDN (A) 4.15 4,200,000
3,635 Birmingham, (Medical Clinic Board St.
Martins'-in-the-Pines Medical Clinic Revenue
Refunding, St Martins' Project, Series 1989) LOC
First Alabama Bank..............................
VRDN (A) 4.32 3,635,000
2,250 Jefferson County (Public Improvement Revenue
Warrant, Briarwood Presbyterian Church Project,
Series 1988) LOC Amsouth Bank...................
VRDN (A) 5.85 2,250,000
2,230 Anniston Solid Waste Disposal Authority (PCR,
Monsanto Co Project, Series 1992)...............
VRDN (A) 4.00 2,230,000
1,930 Birmingham (Medical Clinic Board Baptist Medical
Center, Clinic Revenue Series 1990-A, Western
Medical Systems, Inc. Project) LOC Fuji Bank
Ltd.............................................
VRDN (A) 4.15 1,930,000
1,000 Stevenson, (Industrial Development Board, Mead
Project) LOC Credit Suisse......................
VRDN (A) 3.75 1,000,000
-------------
Total Alabama..................................... 61,870,000
-------------
ALASKA (2.9%)
27,500 Anchorage Alaska (Series 1994)....................
TAN 12/07/95 5.00 27,574,727
4,745 Alaska (Industrial Development and Export
Authority, IDR, American President Lines Ltd.,
Series 1991) LOC Industrial Bank of Japan Ltd...
VRDN (A) 4.30 4,745,000
1,485 Alaska (Industrial Development Authority, IDR,
Providence Medical Office Building Associates
Project, Series 1985) LOC Barclay's Bank
International...................................
VRDN (A) 3.75 1,485,000
-------------
Total Alaska...................................... 33,804,727
-------------
ARIZONA (1.2%)
6,600 Maricopa County, (Pollution Control Corporation,
PCR, Public Service Co. of New Mexico, Palo
Verde Project, Series 1992A) LOC Canadian
Imperial Bank...................................
VRDN (A) 4.00 6,600,000
</TABLE>
See Accompanying Notes.
14
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
ARIZONA (CONTINUED)
$ 3,200 Tucson, (Industrial Development Authority,
Reliance Group Inc., Parking Garage Revenue) LOC
Societe Generale................................
VRDN (A) 4.25% $ 3,200,000
2,000 Salt River, (Arizona Agriculture Import & Power
District Salt River Project, Series 1986C,
Maturity 1/01/07) Prerefunded...................
RB 01/01/96 7.13 2,070,870
1,000 Casa Grande, (Industrial Development Authority,
IDR, Abbott Labs Project, Series 1983)..........
VRDN (A) 4.95 1,000,000
800 Casa Grande, (Industrial Development Authority,
PCR, Abbott Labs Project, Series 1984)..........
VRDN (A) 4.95 800,000
-------------
Total Arizona..................................... 13,670,870
-------------
ARKANSAS (0.5%)
5,175 Texarkana, (Industrial Development Board, Cooper
Tire and Rubber Co. Project, Series 1991).......
VRDN (A) 4.75 5,175,000
750 North Little Rock, (IDR, Refunding, Noland Co.
Project, Series 1989) LOC Wachovia Bank and
Trust...........................................
VRDN (A) 4.32 750,000
-------------
Total Arkansas.................................... 5,925,000
-------------
CALIFORNIA (4.0%)
16,400 California Higher Education Loan Authority, Inc
(Student Loan Revenue Bond Refunding, Series
1992 D-1. Maturity 4/01/00), LOC Dresdner Bank
N.Y.............................................
RB 04/01/95 4.00 16,400,000
11,000 California, (School Cash Reserve Program,
Authority Primary & Secondary School Revenue,
Series 1994A)...................................
RB 07/05/95 4.50 11,027,416
7,845 California (Series 1994 - 95A)....................
RAN 06/28/95 5.00 7,872,411
6,000 California Higher Education Loan Authority, Inc
(Student Loan Revenue Bond Refunding, Series
1987 A, Maturity 06/01/01) LOC National
Westminster Bank PLC............................
RB 05/01/95(B) 3.60 6,000,000
3,700 Los Angeles County (1994 - 95)....................
TRAN 06/30/95 4.50 3,705,788
2,000 Fresno, (IDR, Fresno MSA Limited Partnership
Project) LOC Bank of Nova Scotia................
VRDN (A) 5.85 2,000,000
-------------
Total California.................................. 47,005,615
-------------
COLORADO (1.2%)
8,600 Moffat County, (Colorado Pollution Control, PCR
Pacificorp Project, Series 1994 Maturity
5/01/13) AMBAC Insured..........................
VRDN (A) 3.80 8,600,000
2,550 Cherry Creek County, (Southern Metropolitan
District #1, Series 1986) LOC Dresdner Bank.....
VRDN (A) 4.15 2,550,000
2,450 Colorado, (Student Obligation Bond Authority,
Student Loan Revenue, Series 1990C) LOC Fuji
Bank Ltd........................................
VRDN (A) 4.05 2,450,000
-------------
Total Colorado.................................... 13,600,000
-------------
</TABLE>
See Accompanying Notes.
15
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
CONNECTICUT (1.7%)
$ 20,000 Connecticut State, (Development Authority, PCR,
Connecticut Lighting & Power Project, Series
1993A, Maturity 9/01/28), LOC Deutsche Bank
AG..............................................
VRDN (A) 3.95% $ 20,000,000
-------------
DELAWARE (0.4%)
4,200 Wilmington Delaware, (Franciscan Health Systems,
Series 1986, Maturity 7/01/11), LOC Societe
Generale........................................
VRDN (A) 3.75 4,200,000
-------------
DISTRICT OF COLUMBIA (5.1%)
20,000 District of Columbia, (Series 1995A Sub A2) LOC
Toronto Dominion................................
TRAN 09/30/95 6.25 20,157,731
15,900 District of Columbia, (Series 1992 A-2) LOC Bank
of Nova Scotia..................................
VRDN (A) 4.40 15,900,000
8,840 Washington DC, (Metropolitan Transportation
Authority, Series PA-4L) FGIC Insured...........
TPP (A) 4.25 8,840,000
7,700 District of Columbia, (Series 1992 A-6) LOC
National Westminster Bank PLC...................
VRDN (A) 4.40 7,700,000
4,500 District of Columbia, (Series 1992 A-4) LOC
Toronto Dominion................................
VRDN (A) 4.40 4,500,000
2,900 District of Columbia, (Columbia Hospital for Women
Issue, 1988 Series A) LOC Mitsubishi Bank Ltd...
VRDN (A) 4.10 2,900,000
-------------
Total District of Columbia........................ 59,997,731
-------------
FLORIDA (7.7%)
34,300 Florida Local Government, (Developement Finance
Authority, Series 1987), LOC General Electric
Capital Corp....................................
VRDN (A) 4.05 34,300,000
18,900 Hillsborough County, (Industrial Development
Authority, PCR, Refunding, Series 1992).........
VRDN (A) 3.60 18,900,000
15,000 Dade County, Water & Sewer System.................
VRDN (A) 3.95 15,000,000
10,050 Florida, (First Municipal Loan Council, Florida
League of Cities, Series 1985), LOC Sumitono
Bank, LTD.......................................
CP 12/01/95 4.30 10,050,000
5,750 Hernando County, (IDR, Refunding, Moore McCormack
Resource Inc. Project Series 1988) LOC Societe
Generale........................................
VRDN (A) 4.32 5,750,000
3,570 Jacksonville, (Florida Electric Authority, St John
Power Port System, Series 1986) Project, Series
1988)
Prerefunded.....................................
VRDN (A) 7.25 3,676,805
2,000 Florida, (Housing Finance Agency, Carlton Arms II
Project, Multi Family Housing Revenue Series
1985 - EEE) LOC Sumitomo Bank Ltd...............
VRDN (A) 4.30 2,000,000
575 County of Orange, (Industrial Development
Authority, IDR Refunding Noland Co. Project,
Series 1989) LOC Wachovia Bank and Trust........
VRDN (A) 4.32 575,000
-------------
Total Florida..................................... 90,251,805
-------------
</TABLE>
See Accompanying Notes.
16
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
GEORGIA (2.2%)
$ 10,000 Georgia , (Series 1993 C, BT #149)................
TPP (A) 4.10% $ 10,000,000
7,500 Burke County, (Development Authority, PCR,
Oglethorpe Project), FGIC Insured...............
VRDN (A) 3.90 7,500,000
6,600 Burke County, (Development Authority, PCR,
Oglethorpe Power Corp. Series 1994 A Vogtle
Project) FGIC Insured...........................
VRDN (A) 3.95 6,600,000
1,500 County of DeKalb, (Development Authority, IDR,
Refunding Noland Co. Project, Series 1989) LOC
Wachovia Bank and Trust.........................
VRDN (A) 4.32 1,500,000
690 Cobb County, (Development Authority, IDR
Refunding, Noland Co. Project, Series 1989) LOC
Wachovia Bank and Trust.........................
VRDN (A) 4.32 690,000
-------------
Total Georgia..................................... 26,290,000
-------------
HAWAII (1.0%)
7,100 Hawaii, (Housing Finance and Development
Corporation, Rental Housing Program, Housing
Program Revenue Honokowa, Rental Housing
Project, Series 1989-A) LOC Banque National De
Paris...........................................
VRDN (A) 4.10 7,100,000
4,800 Hawaii, (Housing Finance and Development
Corporation, Affordable Rental Housing Program,
Housing Program Revenue, Kauhole Kakoaka Project
Series 1993-A) LOC Barclays Bank, PLC...........
VRDN (A) 4.10 4,800,000
-------------
Total Hawaii...................................... 11,900,000
-------------
IDAHO (0.4%)
5,200 Power County, (Idaho Pollution Control, PCR, FMC
Corporation Project, Series 1985), LOC Barclays
Bank International..............................
VRDN (A) 3.80 5,200,000
-------------
ILLINOIS (5.0%)
40,000 Illinois, (Series 1994)...........................
GO 06/15/95 4.75 40,081,131
6,000 Chicago, (O'Hare International Airport, General
Airport Second Lien, Series 1994 C), LOC Societe
Generale........................................
VRDN (A) 4.00 6,000,000
5,000 Illinois, (Education Facilities Authority,
Cultural Pooled Finance Authority Project,
Series 1985) LOC Commonwealth Bank of
Australia.......................................
VRDN (A) 4.00 5,000,000
2,490 Illinois, (Development Finance Authority, Olin
Corp Project 1993 D) LOC Credit Suisse..........
VRDN (A) 3.70 2,490,000
2,000 Illinois, (Health Facilities Authority, University
of Chicago Hospital Project Series 1985 C) LOC
First National Bank, Chicago....................
VRDN (A) 4.15 2,000,000
1,090 Charleston Illinois, (Servistar Corp. Project,
Series 1988) LOC ABN Amro Bank N.V..............
VRDN (A) 4.32 1,090,000
</TABLE>
See Accompanying Notes.
17
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 1,300 Illinois, (Development Finance Authority, Limited
Obligation Revenue Bond, Dart Container Corp of
Illinois Project, Series 1984) LOC National Bank
of Detroit......................................
VRDN (A) 4.32% $ 1,300,000
1,000 North Chicago, (Lake County, IDR, Abbott Labs
Project, Series 1983)...........................
VRDN (A) 4.95 1,000,000
-------------
Total Illinois.................................... 58,961,131
-------------
INDIANA (1.2%)
8,000 Indiana, (Health Facilities Authority, Deaconess
Hospital Inc) LOC Fuji Bank Ltd.................
VRDN (A) 4.15 8,000,000
6,700 Jasper County, (Indiana Pollution Control, PCR,
Northern Indiana Public Service Co. Series 1994
B), LOC Union Bank of Switzerland...............
VRDN (A) 3.80 6,700,000
-------------
Total Indiana..................................... 14,700,000
-------------
KANSAS (1.4%)
10,000 Kansas, (Department of Transportation & Highways,
Series 1994B)...................................
VRDN (A) 4.00 10,000,000
3,300 Wichita, (CSJ Health System of Wichita, Inc
Revenue, Series 25 1985) LOC Sumitomo Bank
Ltd.............................................
VRDN (A) 4.05 3,300,000
2,000 Garden City, (IDR Refunding, Inland Container Corp
Project, Series 1983) LOC Credit Suisse.........
VRDN (A) 3.80 2,000,000
1,650 Wichita, (Airport Authority Adjustable Mode
Facility Revenue Refunding, Flight Safety
International Inc., Project, Series 1990) LOC
Wachovia Bank and Trust.........................
VRDN (A) 4.15 1,650,000
-------------
Total Kansas...................................... 16,950,000
-------------
KENTUCKY (0.5%)
5,300 Pendleton County, (Kentucky County Association
Leasing Program, Series 1989) LOC Commonwealth
Bank of Australia...............................
CP 4/10/95 4.10 5,300,000
-------------
LOUISIANA (7.4%)
24,600 Calcasieu Parish, (Recovery District Sales Tax,
Road Improvement) LOC National Westminster
Bank............................................
VRDN (A) 4.22 24,600,000
17,400 Louisiana, (Recovery District Sales Tax, Series
1988) FGIC Insured..............................
VRDN (A) 4.15 17,400,000
15,000 Louisiana, (Recovery District Sales Tax, Series
1988) MBIA Insured..............................
VRDN (A) 3.75 15,000,000
10,900 Ascension Parish, (PCR, BASF Vandotle Corporation
Project, Series 1985), LOC Bank Of Tokyo........
VRDN (A) 3.80 10,900,000
7,100 New Orleans, (Louisiana Aviation Board, Series
1993B) MBIA Insured.............................
VRDN (A) 3.95 7,100,000
6,100 Louisiana, (Series 1991A), LOC Fuji Bank Ltd......
CP 4/10/95 4.15 6,100,000
</TABLE>
See Accompanying Notes.
18
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
LOUISIANA (CONTINUED)
$ 5,500 Louisana, (Offshore Terminal Authority Deepwater
Port, First Stage A - LOOP Inc. Project, Series
1992A), LOC Union Bank Of Switzerland...........
VRDN (A) 3.80% $ 5,500,000
-------------
Total Louisiana................................... 86,600,000
-------------
MASSACHUSETTS (4.4%)
12,100 Massachusetts, (Dedicated Income Tax, Fiscal
Recovery Loan Act - 1990) LOC National
Westminster Bank PLC............................
VRDN (A) 3.65 12,100,000
17,000 Massachusetts, ( Bay Transit Authority, Series
1993)...........................................
CP 04/11/95 4.00 17,000,000
9,800 Massachusetts, (Health & Education Facility,
Harvard University, Series 1985)................
VRDN (A) 3.75 9,800,000
6,000 Massachusetts, (Series E, Dedicated Income Tax,
Fiscal Recovery Loan Act - 1990) LOC ABN Amro
Bank)...........................................
VRDN (A) 3.65 6,000,000
2,600 Massachusetts, (Series D, Dedicated Income Tax,
Fiscal Recovery Loan Act - 1990) LOC ABN Amro
Bank
VRDN (A) 3.65 2,600,000
4,800 Massachusetts, (Series P-5) MBIA Insured..........
TPP (A) 4.25 4,800,000
-------------
Total Massachusetts............................... 52,300,000
-------------
MARYLAND (1.9%)
10,000 Anne Arundel, (PCR, Baltimore Gas and Electric Co.
Project, Series 1989, Maturity 07/01/14)........
RB 07/01/95(B) 3.65 10,000,000
7,960 Harford County, (PA 48)...........................
TPP (A) 4.20 7,960,000
3,000 Washington (Suburban Sanitation District) LOC
Toronto Dominion Bank...........................
VRDN (A) 3.90 3,000,000
1,655 Frederick County (IDR Refunding, Noland Co.
Project, Series 1989) LOC Wachovia Bank and
Trust...........................................
VRDN (A) 4.32 1,655,000
-------------
Total Maryland.................................... 22,615,000
-------------
MINNESOTA (0.3%)
2,340 Minnesota (Series PA-74I).........................
TPP (A) 4.20 2,340,000
1,700 St Louis Park, (Tax Increment Revenue, Series
1987B) LOC Sumitomo Bank Ltd....................
VRDN (A) 4.20 1,700,000
-------------
Total Minnesota................................... 4,040,000
-------------
MISSISSIPPI (0.5%)
5,500 Harrison County, (Mississippi Pollution Control,
PCR, E I Du Pont De Nemours Co. Project, Series
1990)...........................................
VRDN (A) 3.70 5,500,000
535 Columbus, (IDR, Refunding Noland Co. Project,
Series 1989) LOC Wachovia Bank and Trust........
VRDN (A) 4.32 535,000
-------------
Total Mississippi................................. 6,035,000
-------------
</TABLE>
See Accompanying Notes.
19
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
MISSOURI (0.9%)
$ 11,000 Missouri, (Environmental Improvement and Energy
Resources Authority, PCR, Union Electric Co.
Project, Series 1984B, Maturity 06/01/14) LOC
Union Bank of Switzerland.......................
RB 06/01/95(B) 3.75% $ 11,000,000
-------------
NEW HAMPSHIRE (1.5%)
9,600 New Hampshire, (Business Finance Authority,
PCR, New England Power Company Project,
Series 1990 B)..................................
VRDN (A) 3.90 9,600,000
7,755 New Hampshire Higher Educational and Health
Facilities Authority, Dartmouth Educational Loan
Corp, Student Loan Revenue, Series 1985,
Maturity 11/01/20)..............................
RB 06/01/95(B) 3.63 7,755,000
-------------
Total New Hampshire............................... 17,355,000
-------------
NEW JERSEY (1.3%)
8,209 Essex County, (Series 1994A)......................
BAN 12/12/95 5.50 8,239,618
5,000 New Jersey, (Series 1995A)........................
TRAN 06/15/95 5.00 5,007,028
2,500 New Jersey, (Series 1995A), LOC Union Bank of
Switzerland.....................................
TRAN 03/07/95 3.45 2,500,000
-------------
Total New Jersey.................................. 15,746,646
-------------
NEW YORK (4.1%)
19,200 New York City (Series 1994 B).....................
RAN 06/30/95 4.75 19,230,075
11,350 New York, (Series 1993B) FGIC Insured.............
VRDN (A) 3.75 11,350,000
10,000 Suffolk County, (New York Water Authority,
Series 1994) LOC Bank of Nova Scotia............
VRDN (A) 3.90 10,000,000
6,700 New York (Energy Research & Development Authority,
Niagra Mohawk Power Corp, Series 1985A) LOC
Toronto Dominion Bank...........................
VRDN (A) 4.10 6,700,000
1,000 New York, (Sub-Series 1994B-4) LOC Union Bank of
Switzerland.....................................
VRDN (A) 4.00 1,000,000
-------------
Total New York.................................... 48,280,075
-------------
NORTH CAROLINA (1.2%)
4,000 Wake County, (Industrial Facilities and Pollution
Control Financing Authority, PCR, Carolina Power
& Light Project, Series 1985A) LOC Credit
Suisse..........................................
VRDN (A) 4.00 4,000,000
2,600 Wake County, (Industrial Facilities and Pollution
Control Financing Authority, PCR, Carolina Power
& Light Co. Project, Series 1985 B) LOC Sumitomo
Bank Ltd........................................
VRDN (A) 4.05 2,600,000
2,140 County of Davidson, (Industrial Facilities and
Pollution Control Financing Authority, IDR
Refunding, Lowes Co., Inc. Project, Series 1990)
LOC National Westminster Bank PLC...............
VRDN (A) 4.32 2,140,000
</TABLE>
See Accompanying Notes.
20
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
NORTH CAROLINA (CONTINUED)
$ 2,100 Ashe County, (Industrial Facilities and Pollution
Control Finance Authority, IDR Refunding, Gates
Rubber Co. Project, Series 1988) LOC National
Bank of Detroit.................................
VRDN (A) 4.32% $ 2,100,000
2,000 Mecklenburg County, (Industrial Facilities and
Pollution Control Financing Authority, IDR,
Allied Corp. Project, Series 1984) LOC Algemene
Bank Nederlande N.V.............................
VRDN (A) 4.30 2,000,000
1,600 North Carolina, (Educational Facilities Finance
Agency, Guilford College Project, Series 1993)
LOC Wachovia Bank and Trust.....................
VRDN (A) 3.80 1,600,000
-------------
Total North Carolina.............................. 14,440,000
-------------
OHIO (1.0%)
5,840 Ohio State........................................
TPP (A) 4.15 5,840,000
4,400 Wooster, (IDR, Allen Group Inc. Project, Series
1985) LOC Union Bank of Switzerland.............
VRDN (A) 3.85 4,400,000
1,400 Warren County, (IDR, Leggett & Platt Inc. Project,
Series 1984) LOC National Westminster Bank
PLC.............................................
VRDN (A) 4.25 1,400,000
-------------
Total Ohio........................................ 11,640,000
-------------
OKLAHOMA (6.2%)
51,500 Oklahoma, (Water Resources Board, State Loan
Revenue Program Series 1994 A) LOC Swiss Bank
Corp............................................
RB 03/01/95 3.85 51,500,000
8,425 Washington County, (Medical Authority, Hospital
Revenue, Series 1989B)..........................
RB 05/01/95 5.55 8,425,000
5,760 Oklahoma, (Industrial Development Authority,
St Anthony's Physicians Building PJ Medical
Practice, Series 1986) LOC Mitsubishi Bank and
Trust...........................................
RB 06/01/95 4.30 5,760,000
5,350 Tulsa, (Industrial Development Authority,
Hillcrest Medical Center Project, Series 88) LOC
Sumitomo Bank...................................
VRDN (A) 4.10 5,350,000
2,480 Oklahoma, (Industrial Development Authority, IDR,
St Anthony Parking Garage Project, Series 1985)
LOC Mitsubishi Bank and Trust...................
RB 06/01/95 4.30 2,480,000
-------------
Total Oklahoma.................................... 73,515,000
-------------
OREGON (1.5%)
17,200 Port of Portland, (PCR, Revenue Bonds, Reynolds
Metal Co., Series 1985) LOC Bank of Nova
Scotia..........................................
VRDN (A) 3.75 17,200,000
-------------
PENNSYLVANIA (9.5%)
15,771 Pennsylvania, (Higher Education Facilities
Authority, Series B)............................
VRDN (A) 5.00 15,771,000
15,000 Pennsylvania, (Series 1994-95)....................
TAN 06/30/95 5.00 15,050,791
</TABLE>
See Accompanying Notes.
21
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 14,130 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series
1988B-1) LOC PNC Financial......................
VRDN (A) 4.00% $ 14,130,000
13,189 Pennsylvania, (Higher Education Facilities
Authority, Series A)............................
VRDN (A) 4.13 13,189,000
12,500 Delaware County, (Industrial Development
Authority, Multi Family Housing, United Parcel
Service Project Series 1985)....................
VRDN (A) 3.75 12,500,000
8,000 Temple University, (Commonwealth System of Higher
Education, Series 1994).........................
CP 05/24/95 4.50 8,012,406
6,800 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series 1990D)
MBIA Insured....................................
VRDN (A) 4.00 6,800,000
6,000 Allegheny County, (Industrial Development
Authority, IDR Refunding, Dowty Corp, Project,
Series 1986) LOC Mellon Bank....................
VRDN (A) 4.00 6,000,000
5,580 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series
1988B-2) LOC PNC Financial......................
VRDN (A) 4.00 5,580,000
4,300 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital Series 1990 B)
MBIA Insured....................................
VRDN (A) 4.00 4,300,000
3,500 Clinton County, (Industrial Development Authority,
IDR Mellon Bank, Central, National Assistance
Project, 1985 Series) LOC Mellon Bank...........
VRDN (A) 4.25 3,500,000
2,545 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series
1988B-3) LOC PNC Financial......................
VRDN (A) 4.00 2,545,000
2,000 Pennsylvania State, (Industrial Development
Authority, Series 1990).........................
VRDN (A) 4.25 2,000,000
1,000 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital Series 1990A)
Credit Suisse...................................
VRDN (A) 4.00 1,000,000
1,000 Philadelphia (Series 1994-95C), LOC Dresdner
Bank............................................
TRAN 06/15/95 4.75 1,002,505
500 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital Series 1990C)
MBIA Insured....................................
VRDN (A) 4.00 500,000
-------------
Total Pennsylvania................................ 111,880,702
-------------
SOUTH CAROLINA (2.0%)
9,595 Piedmont County, (South Carolina Electric,
Municipal Power Agency, Series 1985B)
Prerefunded.....................................
VRDN (A) 9.70 10,252,651
9,250 Allendale County, (IDR, King Seeley Thermos Co
Project) LOC PNC Financial......................
VRDN (A) 4.32 9,250,000
1,700 Lauren County, (IDR, Asten Press Fabrics, Inc.,
Project, Series 1991) LOC Wachovia Bank and
Trust...........................................
VRDN (A) 4.05 1,700,000
</TABLE>
See Accompanying Notes.
22
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
SOUTH CAROLINA (CONTINUED)
$ 1,060 County of Spartanburg, (IDR, Refunding, Holmberg
Electronic Corp Project, Series 1989 A) LOC
Wachovia Bank and Trust.........................
VRDN (A) 4.05% $ 1,060,000
950 Charleston County, (IDR, Asten Press Fabrics,
Inc., Project, Series 1991)LOC Wachovia Bank and
Trust...........................................
VRDN (A) 4.05 950,000
-------------
Total South Carolina.............................. 23,212,651
-------------
TENNESSEE (1.8%)
6,500 County of Knox, (Industrial Development Board,
IDR, Moore McCormack Resources Inc. Project
Series 1988) LOC Societe Generale...............
VRDN (A) 3.80 6,500,000
4,600 Bradley County, (Industrial Development Board,
IDR, Olin Corp Project, Series C) LOC Swiss Bank
Corp............................................
VRDN (A) 3.70 4,600,000
3,100 Collierville, (Industrial Development Board, IDR,
Imperial Clevite Inc., Series 1985) LOC National
City Bank of Cleveland..........................
VRDN (A) 5.85 3,100,000
2,510 Metropolitan Government Nashville & Davidson
County (Health and Education Facilities Board,
Vanderbilt University, Maturity 05/01/13).......
RB 05/01/95(B) 3.55 2,510,000
2,300 Sullivan County, (Industrial Development Board,
PCR, Mead Corp Project, Series 1986) LOC Union
Bank of Switzerland.............................
VRDN (A) 3.75 2,300,000
1,365 Franklin, (Industrial Development Board, IDR
Refunding Noland Co. Project, Series 1989) LOC
Wachovia Bank and Trust.........................
VRDN (A) 4.32 1,365,000
600 County of Knox, (Industrial Development Board,
IDR, Lowes Investment Corp. Project, Series
1985) LOC Fuji Bank Ltd.........................
VRDN (A) 4.10 600,000
-------------
Total Tennessee................................... 20,975,000
-------------
TEXAS (7.9%)
35,000 Texas (Series 1994)...............................
TRAN 08/31/95 5.00 35,078,301
20,000 Harris County, (Health Facilities Development
Corp, Texas Health Care System Sisters of
Charity Incarnate, Series 1985) LOC Credit
Suisse..........................................
CP 04/12/95 4.20 20,000,000
13,700 Texas (Public Finance Authority, Series 1994).....
CP 05/04/95 4.15 13,700,000
10,000 Texas (Public Finance Authority, Series 1995).....
CP 05/18/95 4.45 10,000,000
9,000 Grayson County, (Industrial Development Corp,
Aluminum Co of America).........................
VRDN (A) 4.25 9,000,000
2,400 Texas (Public Finance Authority, Series P - 3)....
TPP (A) 4.20 2,400,000
1,700 Texas, (Higher Education Authority, Education &
Equipment Revenue, Series 1985A) FGIC Insured...
VRDN (A) 4.10 1,700,000
1,500 El Paso, (Industrial Development Authority, IDR
(Contel Cellular of El Paso Inc. Project, Series
1985) LOC Bank of Nova Scotia...................
VRDN (A) 5.85 1,500,000
-------------
Total Texas....................................... 93,378,301
-------------
</TABLE>
See Accompanying Notes.
23
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE (NOTE 1A)
- - -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
VERMONT (0.7%)
$ 7,700 Vermont, (Student Assistance Corp, Student Loan
Revenue Bond, Series 1985) LOC National
Westminster Bank................................
VRDN (A) 4.02% $ 7,700,000
-------------
VIRGINIA (2.4%)
17,235 Richmond, Virginia, (Series 1995A)................
RAN 06/30/95 5.50 17,292,750
6,600 Virginia (Peninsula Port Authority, Coal Terminal
Revenue Refunding Dominion Terminal Associates
Inc., Series 1987D) LOC National Westminster
PLC.............................................
VRDN (A) 3.75 6,600,000
2,945 Chesterfield County, (Improvement and Refunding
Bond, Series 1991)..............................
VRDN (A) 4.10 2,945,000
1,000 Virginia Beach, (Development Authority, IDR,
Norfolk Virginia Beach, Portsmouth MSA Limited
Partnership Project) LOC Bank of Nova Scotia....
VRDN (A) 5.85 1,000,000
-------------
Total Virginia.................................... 27,837,750
-------------
WASHINGTON (0.2%)
2,900 Port of Seattle (Industrial Development
Corporation, IDR, Douglas Management Co.
Project, 1985 Series) LOC Banque Paribas........
VRDN (A) 4.25 2,900,000
-------------
WEST VIRGINIA (0.1%)
1,000 County of Mercer, (IDR Refunding, Noland Co.
Project, Series 1989) LOC Wachovia Bank and
Trust...........................................
VRDN (A) 4.32 1,000,000
-------------
WISCONSIN (3.7%)
24,750 Wisconsin.........................................
RB 06/15/95 4.50 24,782,583
8,500 Wisconsin (Custodial Receipt Certificates)........
TPP (A) 4.20 8,500,000
6,500 Wisconsin (Health and Education Facilities
Authority, Mercy Hospital, Series 1994).........
VRDN (A) 4.24 6,500,000
2,500 Marshfield, (IDR, Beatrice Cheese Inc., Project,
Series 1984) LOC Wachovia Bank and Trust........
VRDN (A) 4.32 2,500,000
1,300 Seymour, (IDR, Beatrice Cheese Inc., Project,
Series 1984) LOC Wachovia Bank and Trust........
VRDN (A) 4.32 1,300,000
-------------
Total Wisconsin................................... 43,582,583
-------------
TOTAL INVESTMENTS (102.2%)...........................................................
1,202,860,587
LIABILITIES NET OF OTHER ASSETS (-2.2%)......................
(26,150,432)
-------------
NET ASSETS (100.0%)..........................................
$1,176,710,155
-------------
-------------
</TABLE>
(A) Variable Rate Demand Note tender dates and/or interest rates are reset at
specified intervals which coincide with their tender feature.
(B) The date listed under the heading maturity date represents an optional
tender date. The actual maturity date is indicated in the security
description.
See Accompanying Notes.
24
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
Note: Abbreviations used in the schedule of investments are as
follows:
AMBAC - AMBAC Indemnity Corp
BAN - Bond Anticipation Note
CP - Commercial Paper
FGIC - Financial Guaranty Insurance Company
GO - General Obligation
IDR - Industrial Development Revenue
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance Corp
PCR - Pollution Control Revenue
RAN - Revenue Anticipation Note
RB - Revenue Bond
TAN - Tax Anticipation Note
TPP - Third Party Put
TRAN - Tax Revenue Anticipation Note
VRDN - Variable Rate Demand Note
See Accompanying Notes.
25
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Amortized Cost and Value (Note 1a) $ 1,202,860,587
Interest Receivable 10,160,494
Prepaid Expenses 7,067
---------------
Total Assets 1,213,028,148
---------------
LIABILITIES
Payable for Investments Purchased 31,500,000
Payable to Custodian 4,202,980
Advisory Fee Payable (Note 2a) 350,682
Financial and Fund Accounting Services Fee Payable (Note 2c) 213,599
Administration Fee Payable (Note 2b) 6,200
Fund Services Fee Payable (Note 2d) 11,830
Accrued Expenses 32,702
---------------
Total Liabilities 36,317,993
---------------
NET ASSETS
Applicable to Investors' Beneficial Interests $ 1,176,710,155
---------------
---------------
</TABLE>
See Accompanying Notes.
26
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B)
$ 21,095,935
Interest
EXPENSES
Advisory Fee (Note 2a) $1,067,590
Custodian Fees and Expenses 114,381
Financial and Fund Accounting Services Fees (Note 2c) 69,279
Fund Services Fee (Note 2d) 57,979
Administration Fee (Note 2b) 37,827
Professional Fees 42,885
Trustees' Fees and Expenses (Note 2e) 14,493
Miscellaneous 7,086
----------
1,411,520
Total Expenses
------------
19,684,415
NET INVESTMENT INCOME
(243,491)
NET REALIZED LOSS ON INVESTMENTS
------------
$ 19,440,924
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
------------
------------
</TABLE>
See Accompanying Notes.
27
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
FEBRUARY 28, FOR THE FISCAL
1995 YEAR ENDED
(UNAUDITED) AUGUST 31, 1994
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 19,684,415 $ 24,446,505
Net Realized Loss on Investments (243,491) (13,933)
--------------- ---------------
Net Increase in Net Assets Resulting from Operations 19,440,924 24,432,572
--------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions 2,247,617,296 4,178,991,353
Withdrawals (2,112,194,289) (4,226,184,823)
--------------- ---------------
Net Increase (Decrease) from Investors' Transactions 135,423,007 (47,193,470)
--------------- ---------------
Total Increase (Decrease) in Net Assets 154,863,931 (22,760,898)
NET ASSETS
Beginning of Period 1,021,846,224 1,044,607,122
--------------- ---------------
End of Period $1,176,710,155 $ 1,021,846,224
--------------- ---------------
--------------- ---------------
</TABLE>
- - --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
FEBRUARY 28, FOR THE FISCAL
1995 YEAR ENDED
(UNAUDITED) AUGUST 31, 1994
--------------- ---------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.25%(a) 0.25%
Net Investment Income 3.44%(a) 2.37%
<FN>
- - ---------
(a) Annualized
</TABLE>
See Accompanying Notes.
28
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Tax Exempt 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 on January 29, 1993. The Portfolio
commenced operations on July 12, 1993 and received a contribution of certain
assets and liabilities, including securities, with a value of $955,814,753 on
that date from The Pierpont Tax Exempt Money Market Fund in exchange for a
beneficial interest in the Portfolio. 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.
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 will 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.
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 February 28,1995,
this fee amounted to $1,067,590.
b) 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 fee
rate determined by the following schedule: 0.01% of the first $1 billion
of the aggregate average daily net assets of the Trust, as well as the
net assets of two other fund families
29
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
for which Signature acts as administrator, 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 daily to the net assets of the Fund. For the
six months ended February 28, 1995, the Funds' portion of Signature's fee
for these services amounted to $37,827.
c) The Portfolio has entered into 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, 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 February 28,1995, this fee amounted
to $69,279.
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 are the sole shareholders of Group. The Portfolio's allocated
portion of Group's costs in performing its services amounted to $57,979
for the six months ended February 28,1995.
e) Each Trustee is paid a $55,000 annual fee for serving as the Trustee of
The Pierpont Funds, The JPM Institutional Funds, and their corresponding
Portfolios, in the aggregate. The Trustee Fees and Expenses shown in the
financial statements represent the Portfolio's allocated portion of the
total fees and expenses. On April 1, 1995, the aggregate annual trustee
fee was increased to $65,000. 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 $6,700.
30
<PAGE>
THE PIERPONT MONEY MARKET FUND
THE PIERPONT TAX EXEMPT MONEY MARKET FUND The
THE PIERPONT TREASURY MONEY MARKET FUND Pierpont
THE PIERPONT SHORT TERM BOND FUND Tax Exempt
THE PIERPONT BOND FUND Money Market Fund
THE PIERPONT TAX EXEMPT BOND FUND
THE PIERPONT NEW YORK TOTAL RETURN BOND FUND
THE PIERPONT DIVERSIFIED FUND
THE PIERPONT EQUITY FUND
THE PIERPONT CAPITAL APPRECIATION FUND
THE PIERPONT INTERNATIONAL EQUITY FUND
THE PIERPONT EMERGING MARKETS EQUITY FUND
FOR MORE INFORMATION ON HOW THE PIERPONT FAMILY SEMI-ANNUAL REPORT
OF FUNDS CAN HELP YOU PLAN FOR YOUR FUTURE, CALL FEBRUARY 28, 1995
J.P. MORGAN FUNDS SERVICES AT (800) 521-5411.
