<PAGE>
LETTER TO THE SHAREHOLDERS OF THE PIERPONT TREASURY MONEY MARKET FUND
June 14, 1996
Dear Shareholder:
We are pleased to report that The Pierpont Treasury Money Market Fund
outperformed its benchmark, The IBC/Donoghue's U.S. Government & Agency Money
Market Fund Average,* for the six months ended April 30, 1996. The Fund returned
2.53% for the period versus a benchmark return of 2.38%. We believe that
security selection and active maturity management contributed to the Fund's
return for the period and that these investment decisions have helped the Fund
to consistently outperform its benchmark since its inception on January 4, 1993
(see table on page 2).
We are also pleased to announce that we have made some enhancements to the
Fund's semi-annual report as part of our ongoing dedication to provide better
service to our shareholders. In addition to making Fund performance easier to
locate, we have added a portfolio manager Q&A with James A. Hayes, a member of
our portfolio management team. This interview is designed to answer commonly
asked questions about the Fund, elaborate on what happened during the reporting
period, and to provide our outlook for the months ahead.
As always, we welcome your comments, questions, or any suggestions on how we can
further improve your financial reports. Please call J.P. Morgan Funds Services,
toll free, at (800) 521-5411.
Sincerely yours,
/s/ Evelyn E. Guernsey
Evelyn E. Guernsey
J.P. Morgan Funds Services
* REPRESENTS IBC/DONOGHUE'S U.S. TREASURY & REPO MONEY MARKET FUND AVERAGE
THROUGH 12/31/95 AND IBC/DONOGHUE'S U.S. GOVERNMENT & AGENCY MONEY MARKET FUND
AVERAGE THEREAFTER.
TABLE OF CONTENTS
LETTER TO THE SHAREHOLDERS . . . .1 FUND FACTS AND HIGHLIGHTS. . . . .6
FUND PERFORMANCE . . . . . . . . .2 SPECIAL FUND-BASED SERVICES. . . .7
PORTFOLIO MANAGER Q&A. . . . . . .3 FINANCIAL STATEMENTS . . . . . . .9
1
<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 SIX ONE THREE SINCE
AS OF APRIL 30,1996 MONTHS MONTHS YEAR YEARS INCEPTION*
- ------------------------------------------------------------------ -------------------------------
<S> <C> <C> <C> <C> <C>
The Pierpont Treasury Money Market Fund 1.18% 2.53% 5.36% 4.24% 4.11%
IBC/Donoghue's U.S. Government & Agency
Money Market Fund Average** 1.14% 2.38% 5.01% 3.97% 3.86%
IBC/Donoghue's U.S. Treasury & Repo
Money Market Fund Average 1.13% 2.38% 5.01% 3.97% 3.86%
AS OF MARCH 31, 1996
- ------------------------------------------------------------------ -------------------------------
The Pierpont Treasury Money Market Fund 1.21% 2.58% 5.43% 4.18% 4.09%
IBC/Donoghue's U.S. Government & Agency
Money Market Fund Average** 1.16% 2.42% 5.07% 3.91% 3.84%
IBC/Donoghue's U.S. Treasury & Repo
Money Market Fund Average 1.16% 2.42% 5.07% 3.91% 3.84%
</TABLE>
*1/4/93 -- COMMENCEMENT OF OPERATIONS (AVERAGE ANNUAL TOTAL RETURNS BASED ON
MONTH END FOLLOWING INCEPTION). THE FUND'S AVERAGE ANNUAL TOTAL RETURN SINCE ITS
COMMENCEMENT OF OPERATIONS OF 1/4/93 IS 4.08%.
**REPRESENTS IBC/DONOGHUE'S U.S. TREASURY & REPO MONEY MARKET FUND AVERAGE
THROUGH 12/31/95 AND IBC/DONOGHUE'S U.S. GOVERNMENT & AGENCY MONEY MARKET FUND
AVERAGE THEREAFTER.
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. FUND RETURNS ASSUME THE
REINVESTMENT OF DISTRIBUTIONS AND REFLECT REIMBURSEMENT OF CERTAIN FUND AND
PORTFOLIO EXPENSES AS DESCRIBED IN THE PROSPECTUS.
2
<PAGE>
PORTFOLIO MANAGER Q&A
[Photo]
Following is an interview with JAMES A. HAYES, who is a member of the portfolio
management team for The Treasury Money Market Portfolio in which the Fund
invests. A member of our Fixed Income Peer Review Committee, Jim joined Morgan
in 1978 and has responsibility for several institutional and employee benefit
client relationships that use traditional active fixed income management. This
interview was conducted on June 4, 1996 and reflects Jim's views on that date.
THE FUND OUTPERFORMED ITS DONOGHUE BENCHMARK OVER A SIX-MONTH PERIOD WHOSE
HIGHLIGHTS INCLUDED TWO INSTANCES OF EASING BY THE FEDERAL RESERVE, AN
INVERTED MONEY MARKET YIELD CURVE, FED CHAIRMAN GREENSPAN'S JANUARY REMARKS
TO CONGRESS THAT THE DOMESTIC ECONOMY WAS STRONGER THAN GENERALLY PERCEIVED,
THEN A REVERSAL OF THE INVERTED CURVE AND A RETURN TO A MORE NORMAL MONEY
MARKET YIELD SPREAD. QUITE A ROLLERCOASTER RIDE. HOW LONG DO YOU THINK IT
MIGHT EXTEND INTO THE FUTURE, OR IS THE DOMESTIC ECONOMIC PICTURE BEGINNING
TO CRYSTALLIZE IN YOUR VIEW?
JAH: The six months under review were an exciting time to be a market watcher
- -- and, of course, a portfolio manager -- because of the unusually fast pace at
which developments broke and later reversed themselves. We think that the
Federal Reserve's decision to ease its rates twice during this period reflected
a market view that the economy was growing at an unacceptably slow pace, along
with expectations that inflation would continue to improve.
But how quickly those perceptions have changed, thanks largely to the
effectiveness of Fed easing. The current view is that the economy is rebounding
from a low point that occurred during the fourth quarter of 1995. This, in turn,
means that the lowest inflation and interest rates are probably behind us. The
question that the market is now trying to answer is how strong U.S. economic
growth is likely to be during the rest of 1996. Related questions are what will
that growth rate do to inflation and, therefore, to the Federal Reserve's
monetary policy.
We feel that the economy is likely to grow at a moderate pace for the year
and are therefore expecting a trend-like growth rate of approximately 2.5% for
the period, with inflation checking in at around 3.0%. We believe the Fed will
try not to tighten if rates of this magnitude actually do emerge. However, the
market has already begun to discount an additional Fed tightening of between 75
and 100 basis points by increasing the yield provided by the two-year Treasury
note from 5.25% to nearly 6.25%. To keep this in perspective, however, we feel
it is important to remember that the yield provided by the two-year Treasury
note dropped down to 5.25% only a few months ago, when the Fed Funds rate was at
5.75%. Here again, the market expected the Fed to ease by 50 basis points, which
of course the central bank later did.
We think the market will continue to act in much the same way until it
becomes more clear that the economy is at trend-like growth for the rest of the
year. The second quarter of 1996 might see somewhat stronger economic growth,
which again could raise concerns within the market that it would ultimately
3
<PAGE>
translate into higher interest rates. From a historical viewpoint, there is no
question that current employment and capacity utilization figures should set off
the alarm bells in terms of inflationary pressures. The Fed has said, in fact,
that economic growth rates at this point in the cycle are something they are
concerned about. Right now, however, the governors have acknowledged they would
prefer to remain in the neutral position with regard to rates until evidence on
the rate of economic growth becomes clearer.
THE AVERAGE LIFE OF THE PORTFOLIO WAS LONG RELATIVE TO ITS BENCHMARK THROUGHOUT
MOST OF THE PERIOD UNDER REVIEW. WHAT WAS THE THINKING BEHIND SUCH A STRATEGY
AND HOW MUCH DID IT CONTRIBUTE TO THE FUND'S RELATIVE OUTPERFORMANCE?
JAH: The longer average life of the Portfolio definitely made a strongly
positive contribution to the Fund's relative outperformance for the six months
under review. Meanwhile, the differences in yield or "spreads" provided by
Treasuries and government agency securities were so narrow that very little
value was added to shareholders by the Portfolio's sector allocation decision.
We decided to position the Portfolio long relative to the benchmark because of
our expectation that the domestic economy would slow amid an improving inflation
picture.
AN INVERTED YIELD CURVE, IN WHICH SHORTER MATURITY MONEY MARKET INSTRUMENTS
PROVIDE HIGHER YIELDS THAN LONGER MATURITY INSTRUMENTS, IS A FAIRLY UNUSUAL
OCCURRENCE. HOW WOULD YOU GENERALLY DETERMINE WHETHER SUCH AN INVERSION IS
LIKELY TO LAST LONG ENOUGH TO MERIT MAKING A CHANGE IN THE PORTFOLIO'S AVERAGE
MATURITY, AND DID YOU IN FACT SHORTEN THE PORTFOLIO'S AVERAGE MATURITY IN AN
ATTEMPT TO CAPTURE THE YIELD POTENTIAL OF THIS PERIOD'S UNUSUAL CIRCUMSTANCES?
JAH: Inversion took place mostly in the money market part of the curve, which
of course is the focus of this Portfolio. Given that circumstance, which didn't
last terribly long, a week or so at the most, it was definitely more beneficial
for investors like the Portfolio to invest in repurchase agreements and short-
term commercial paper than to extend out along the yield curve and invest in
six-month commercial paper.
I think any seasoned market analyst will tell you that it's very difficult
to determine how long an inverted curve will last. Nevertheless, we attempt to
estimate by pursuing the same sort of in-depth research we use to help plan the
Portfolio's ongoing strategy. Wherever you are in the cycle, we believe you
have to be consistent in your approach and analyze the economy, interest rates,
and the outlook for inflation in order to get your investment bearings.
An inverted yield curve normally occurs at the end of a growth or
expansionary period, because the Fed starts to raise interest rates to slow the
economy and prevent further worsening of inflation. However, during the period
under review, the curve inverted as the market anticipated Fed easing. The
thought process behind the potential easing was supported by weak economic
growth and inflation data. When Fed easing did not happen, the yield curve
quickly resumed its normal shape.
4
<PAGE>
SO THE PORTFOLIO'S MANAGEMENT STRATEGY REMAINED INTACT FROM A RESEARCH
STANDPOINT?
JAH: That's right. The most important thing is to identify where you are in
the macroeconomic cycle. We are not in a repeat of 1990-1991, a time at which
the economy was coming out of a recession with combined low interest rates and
low inflation. The country is now in the fifth year of its present recovery,
which is very long indeed when viewed on a historical basis. The decades
following World War II have, in fact, seen only three recoveries of this
duration, so most experienced investors have already asked whether we are going
to go into a recession or into a continued expansion that will exacerbate
interest rates and inflation.
In our view, neither extreme is going to occur. We believe the highest
probability is for moderate growth in the 2.5% trend-line level.
LOOKING TO THE MONTHS AHEAD, ARE WE ANTICIPATING THAT FED ACTIONS WILL DETERMINE
THE FUTURE COURSE OF MONEY MARKET RATES, OR DO YOU THINK THAT THE MARKET ITSELF
WILL BE THE DETERMINING FACTOR?
JAH: We think the Fed would prefer to have the market do its job over the next
couple of months for a very simple reason: it's an election year. And so they
are likely to do a lot of jawboning in order to get the market to price in
additional hikes it might make in the future. The Fed has tightened and eased in
different election years. It's almost a toss-up on what the history really is,
but we think the Fed hopes the market will take the lead with regard to interest
rates. Since our outlook is for moderate growth, maybe it will be enough.
ARE WE LOOKING FOR A REPEAT OF THE INVERTED CURVE GOING FORWARD AND, IF NOT, HOW
FAR OUT ON THE CURVE DO YOU THINK THE PORTFOLIO WILL HAVE TO GO IN ORDER TO
MAXIMIZE ITS OVERALL RETURNS?
JAH: No, we don't think the money market yield curve will become inverted again
anytime soon. The reason for this projection, of course, is our expectation that
the U.S. economy will experience trend-like growth in the months ahead.
In terms of our average maturity strategy, I think it's safe to say that
the Portfolio is fairly close to neutral right now relative to the benchmark, if
only because the future direction of interest rates has yet to clarify. If, as
we expect, the market overreacts to hints from the Fed and raises rates higher,
then it's likely we'll extend along the money market yield curve in order to
gain an incremental advantage. For the time being, however, we're just going to
adopt a "wait and see" strategy while staying neutral with regard to the
Portfolio's average maturity.
We're comfortable in saying this because our views of inflation and
monetary policy suggest that interest rates are beginning to exhibit very good
historical fundamental value. We'd like to extend in order to lock in higher
yields, but we don't feel that rates have become attractive enough yet to
justify such a commitment.
5
<PAGE>
FUND FACTS
INVESTMENT OBJECTIVE
The Pierpont 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 obligations of certain U.S.
government agencies.
- ---------------------------------------------
COMMENCEMENT OF OPERATIONS
1/4/93
- ---------------------------------------------
NET ASSETS AS OF 4/30/96
$176,708,639
- ---------------------------------------------
DIVIDEND PAYABLE DATES
MONTHLY
- ---------------------------------------------
CAPITAL GAIN PAYABLE DATE (IF APPLICABLE)
12/20/96
EXPENSE RATIO
The Fund's annualized expense ratio of 0.40% 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, 1996
DAYS TO MATURITY
(PERCENTAGE OF TOTAL INVESTMENTS)
[Pie Chart]
0-30 DAYS 57.1%
31-60 DAYS 13.9%
61-90 DAYS 15.8%
90+ DAYS 14.8%
AVERAGE 7-DAY YIELD
4.78%
AVERAGE LIFE
66 DAYS
6
<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.
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.
7
<PAGE>
SIGNATURE BROKER-DEALER SERVICES, INC. IS THE DISTRIBUTOR OF THE PIERPONT
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) 521-5411.
8
<PAGE>
THE PIERPONT TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The Treasury Money Market Portfolio ("Portfolio"),
at value $177,525,237
Deferred Organization Expenses 24,578
Receivable for Expense Reimbursements 8,218
Prepaid Trustees' Fees 849
Prepaid Expenses 9,276
------------
Total Assets 177,568,158
------------
LIABILITIES
Dividends Payable to Shareholders 796,535
Shareholder Servicing Fee Payable 24,529
Administrative Services Fee Payable 4,040
Administration Fee Payable 1,558
Fund Services Fee Payable 766
Accrued Expenses 32,091
------------
Total Liabilities 859,519
------------
NET ASSETS
Applicable to 176,628,869 Shares of Beneficial Interest
Outstanding (par value $0.001, unlimited shares authorized) $176,708,639
------------
------------
Net Asset Value, Offering and Redemption Price Per Share $1.00
------------
------------
ANALYSIS OF NET ASSETS
Paid-In Capital $176,628,869
Accumulated Net Realized Gain on Investment 79,770
------------
Net Assets $176,708,639
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
9
<PAGE>
THE PIERPONT TREASURY MONEY MARKET FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Allocated Interest Income $5,716,417
Allocated Portfolio Expenses (Net of Reimbursements of
$73,099) (214,314)
----------
Net Investment Income Allocated from Portfolio 5,502,103
FUND EXPENSES
Shareholder Servicing Fee $169,386
Administrative Services Fee 18,816
Administration Fee 17,729
Transfer Agent Fee 15,559
Amortization of Organization Expenses 7,281
Fund Services Fee 5,915
Trustees' Fees and Expenses 1,953
Miscellaneous 27,777
--------
Total Fund Expenses 264,416
Less: Reimbursement of Expenses (51,121)
--------
NET FUND EXPENSES (213,295)
----------
NET INVESTMENT INCOME 5,288,808
NET REALIZED GAIN ON INVESTMENT ALLOCATED FROM PORTFOLIO 85,638
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $5,374,446
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
10
<PAGE>
THE PIERPONT TREASURY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE FISCAL
APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995
--------------- -----------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 5,288,808 $ 8,155,894
Net Realized Gain on Investment Allocated from Portfolio 85,638 64,954
--------------- -----------------
Net Increase in Net Assets Resulting from Operations 5,374,446 8,220,848
--------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (5,288,808) (8,155,894)
Net Realized Gain (64,955) --
--------------- -----------------
Total Distributions to Shareholders (5,353,763) (8,155,894)
--------------- -----------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST (AT A CONSTANT $1.00 PER SHARE)
Proceeds from Shares of Beneficial Interest Sold 990,659,020 1,073,847,284
Reinvestment of Dividends and Distributions 4,681,062 7,267,593
Cost of Shares of Beneficial Interest Redeemed (989,771,975) (1,028,690,669)
--------------- -----------------
Net Increase from Transactions in Shares of Beneficial Interest 5,568,107 52,424,208
--------------- -----------------
Total Increase in Net Assets 5,588,790 52,489,162
NET ASSETS
Beginning of Period 171,119,849 118,630,687
--------------- -----------------
End of Period $ 176,708,639 $ 171,119,849
--------------- -----------------
--------------- -----------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
11
<PAGE>
THE PIERPONT TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
FOR THE
PERIOD
JANUARY 4,
1993
(COMMENCEMENT
FOR THE SIX OF
MONTHS ENDED OPERATIONS)
APRIL 30, FOR THE FISCAL YEAR ENDED THROUGH
1996 ----------------------------------- OCTOBER 31,
(UNAUDITED) OCTOBER 31, 1995 OCTOBER 31, 1994 1993
------------ ---------------- ---------------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ -------- -------- -------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.0247 0.0536 0.0333 0.0208
Net Realized Gain (Loss) on Investment
Allocated from Portfolio 0.0005 0.0004 (0.0000)(a) 0.0002
------------ -------- -------- -------------
Total from Investment Operations 0.0252 0.0540 0.0333 0.0210
------------ -------- -------- -------------
LESS DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.0247) (0.0536) (0.0333) (0.0208)
Net Realized Gain (0.0003) -- (0.0002) --
------------ -------- -------- -------------
Total Distributions to Shareholders (0.0250) (0.0536) (0.0335) (0.0208)
------------ -------- -------- -------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ -------- -------- -------------
------------ -------- -------- -------------
Total Return 2.53%(b) 5.49% 3.41% 2.10%(b)
------------ -------- -------- -------------
------------ -------- -------- -------------
RATIOS AND SUPPLEMENTAL DATA
Net Assets at end of Period (in
thousands) $176,709 $171,120 $118,631 $83,097
Ratios to Average Net Assets
Expenses 0.40%(c) 0.40% 0.40% 0.48%(c)
Net Investment Income 4.95%(c) 5.36% 3.40% 2.53%(c)
Decrease reflected in Expense ratio
due to Expense Reimbursement 0.12%(c) 0.15% 0.22% 0.26%(c)
</TABLE>
- ------------------------
(a) Less than $0.0001
(b) Not Annualized
(c) Annualized
The Accompanying Notes are an Integral Part of the Financial Statements.
12
<PAGE>
THE PIERPONT TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Pierpont Treasury Money Market Fund (the "Fund") is a separate series of The
Pierpont Funds, a Massachusetts business trust (the "Trust"). The Trust is
registered under the Investment Company Act of 1940, as amended, as an 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 objective as the Fund. The value of such
investment reflects the Fund's proportionate interest in the net assets of the
Portfolio (49% at April 30, 1996). 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 preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual amounts could differ from
those estimates. 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 $73,309. These
costs were deferred and are being amortized 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.
13
<PAGE>
THE PIERPONT TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Trust has retained 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 provided 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 was applied
each day to the net assets of the Fund. For the period from November 1,
1995, through December 28, 1995, Signature's fee for these services
amounted to $7,725.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged would be equal to the Fund's proportionate share of a
complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios (the "Master Portfolios") in which
series of the Trust, The JPM Institutional Funds or The JPM Advisor Funds
invest and 0.01% on the aggregate average daily net assets of the Master
Portfolios in excess of $7 billion. The portion of this charge payable by
the Fund is determined by the proportionate share its net assets bear to
the total net assets of the Trust, The JPM Institutional Funds, The JPM
Advisor Funds and the Master Portfolios. For the period from December 29,
1995 through April 30, 1996, Signature's fee for these services amounted
to $10,004.
b)Until August 31, 1995, the Trust, on behalf of the Fund, had a Financial
and Fund Accounting Services Agreement ("Services Agreement") with Morgan
Guaranty Trust Company of New York ("Morgan") under which Morgan may
receive a fee, based on the percentage described below, for overseeing
certain aspects of the administration and operation of the Fund and was
also designed to provide an expense limit for certain expenses of the
Fund. This fee was calculated exclusive of the shareholder servicing fee,
the fund services fee and amortization of organization expenses at 0.047%
of the Fund's average daily net assets. From September 1, 1995, until
December 28, 1995, an interim agreement between the Trust, on behalf of
the Fund and Morgan provided for the continuation of the oversight
functions that were outlined under the Services Agreement and that Morgan
should bear all of its expenses incurred in connection with these
services.
Effective December 29, 1995, the Trust, on behalf of the Fund, entered
into an Administrative Services Agreement (the "Agreement") with Morgan
under which Morgan is responsible for certain aspects of the
administration and operation of the Fund. Under the Agreement, the Fund
has agreed to pay Morgan a fee equal to its proportionate share of an
annual complex-wide charge. This charge is calculated daily based on the
aggregate net assets of the Master Portfolios in accordance with the
following annual schedule: 0.06% on the first $7 billion of the Master
Portfolios' aggregate average daily net assets and 0.03% of the aggregate
average daily net assets in
14
<PAGE>
THE PIERPONT TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
excess of $7 billion. The portion of this charge payable by the Fund is
determined by the proportionate share that the Fund's net assets bear to
the net assets of the Trust, the Master Portfolios and other investors in
the Master Portfolios for which Morgan provides similar services. For the
period from December 29, 1995 through April 30, 1996, Morgan's fee for
these services amounted to $18,816.
In addition, 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
0.40% of the average daily net assets of the Fund through February 28,
1997. For the six months ended April 30, 1996, Morgan has agreed to
reimburse the Fund $51,121 for expenses under this agreement.
c)The Trust, on behalf of the Fund, has a Shareholder Servicing Agreement
with Morgan. Until December 28, 1995, the agreement provided for the Fund
to pay Morgan a fee for these services which was computed daily and paid
monthly at an annual rate of 0.18% of the average daily net assets of the
Fund up to and including $1.5 billion and 0.15% on any excess over $1.5
billion. For the period from November 1, 1995 through December 28, 1995,
the fee for these services amounted to $54,193.
Effective December 29, 1995, the Shareholder Servicing Agreement was
amended such that the annual rate for providing these services was changed
to 0.15% of the average daily net assets of the Fund up to and including
$2 billion and 0.10% on any excess over $2 billion. For the period from
December 29, 1995 through April 30, 1996, the fee for these services
amounted to $115,193.
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
$5,915 for six months ended April 30, 1996.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of the Trust, The JPM Institutional Funds and the Master
Portfolios. The Trustees' Fees and Expenses shown in the financial
statements represents the Fund's allocated portion of the total fees and
expenses. The Trustee who serves as Chairman and Chief Executive Officer
of the Trust 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 $700.
15
<PAGE>
The Treasury Money Market Portfolio
Semi-Annual Report April 30, 1996
(unaudited)
(The following pages should be read in conjunction
with The Pierpont Treasury Money Market Fund
Semi-Annual Financial Statements)
16
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL YIELD TO
AMOUNT MATURITY MATURITY/
(IN THOUSANDS) SECURITY DESCRIPTION DATE COUPON VALUE
- -------------- ---------------------------------------- -------- --------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (34.5%)
$ 11,770 Federal Farm Credit Bank 05/24/96 5.500% $ 11,731,123
1,400 Federal Farm Credit Bank 05/15/96 5.160 1,397,191
57,500 Federal Home Loan Bank 05/28/96 5.170-5.500 57,276,875
30,000 Federal Home Loan Bank 05/20/96 5.180-5.500 29,918,063
25,000 Federal Home Loan Bank 06/03/96 5.100 24,883,125
------------
Total U.S. Government Agency Obligations (amortized cost
$125,206,377) 125,206,377
------------
<CAPTION>
U.S. TREASURY OBLIGATIONS (64.0%)
<C> <S> <C> <C> <C>
33,936 United States Treasury Bills 05/09/96 4.735-5.500 33,899,076
30,000 United States Treasury Bills 07/25/96 4.865 29,655,396
28,020 United States Treasury Bills 07/11/96 4.890 27,749,770
24,000 United States Treasury Bills 10/10/96 5.030 23,456,760
20,000 United States Treasury Bills 06/27/96 5.600 19,845,150
13,000 United States Treasury Bills 05/16/96 4.900 12,973,404
4,400 United States Treasury Bills 12/12/96 5.125 4,273,500
395 United States Treasury Bills 02/06/97 4.975 380,833
15,000 United States Treasury Notes 03/31/97 6.625 15,149,218
9,854 United States Treasury Notes 04/30/97 6.500 9,943,585
5,000 United States Treasury Notes 05/15/96 7.375 5,002,924
50,000 United States Treasury Strip (Principal
Only) 05/15/96 5.500 49,902,212
------------
Total U.S. Treasury Obligations (amortized cost $232,231,828) 232,231,828
------------
</TABLE>
<TABLE>
<CAPTION>
REPURCHASE AGREEMENT (1.4%)
<C> <S> <C> <C>
5,032 Goldman Sachs Repurchase Agreement dated
04/30/96 due
05/01/96, proceeds $5,032,745
(collateralized by $3,479,000
U.S. Treasury Bonds 12.75%, due 11/15/10
valued at
$5,133,302 (cost $5,032,000) 5.330 5,032,000
------------
TOTAL INVESTMENTS (COST $362,470,205)(99.9%) 362,470,205
OTHER ASSETS IN EXCESS OF LIABILITIES (0.1%) 168,161
------------
NET ASSETS (100.0%) $362,638,366
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
17
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments at Amortized Cost and Value $362,470,205
Cash 235
Interest Receivable 256,848
Receivable for Expense Reimbursements 24,659
Deferred Organization Expenses 9,307
Prepaid Trustees' Fees 1,399
Prepaid Expenses 951
------------
Total Assets 362,763,604
------------
LIABILITIES
Advisory Fee Payable 79,748
Administrative Services Fee Payable 7,427
Administration Fee Payable 3,823
Fund Services Fee Payable 1,207
Accrued Expenses 33,033
------------
Total Liabilities 125,238
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $362,638,366
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
18
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest $ 9,394,162
EXPENSES
Advisory Fee $351,520
Administrative Services Fee 30,418
Custodian Fees and Expenses 29,483
Administration Fee 19,100
Professional Fees 16,978
Fund Services Fee 9,660
Trustees' Fees and Expenses 3,230
Amortization of Organization Expenses 2,757
Miscellaneous 6,909
--------
Total Expenses 470,055
LESS: REIMBURSEMENT OF EXPENSES (118,535)
--------
NET EXPENSES (351,520)
-----------
NET INVESTMENT INCOME 9,042,642
NET REALIZED GAIN ON INVESTMENTS 137,623
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 9,180,265
-----------
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE FISCAL
APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995
------------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 9,042,642 $ 13,677,298
Net Realized Gain on Investments 137,623 103,233
------------------- ----------------
Net Increase in Net Assets Resulting
from Operations 9,180,265 13,780,531
------------------- ----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS
Contributions 1,146,843,464 1,512,814,744
Withdrawals (1,111,264,817) (1,408,013,342)
------------------- ----------------
Net Increase from Investors'
Transactions 35,578,647 104,801,402
------------------- ----------------
Total Increase in Net Assets 44,758,912 118,581,933
NET ASSETS
Beginning of Period 317,879,454 199,297,521
------------------- ----------------
End of Period $ 362,638,366 $ 317,879,454
------------------- ----------------
------------------- ----------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- ---------------------------------------------------------------------------------
<CAPTION>
FOR THE
PERIOD
JANUARY 4,
1993
FOR THE (COMMENCEMENT
SIX MONTHS FOR THE FISCAL YEAR OF
ENDED ENDED OPERATIONS)
APRIL 30, ----------------------- TO
1996 OCTOBER OCTOBER OCTOBER
(UNAUDITED) 31, 1995 31, 1994 31, 1993
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.20%(a) 0.20% 0.22% 0.26%(a)
Net Investment Income 5.15%(a) 5.55% 3.65% 2.75%(a)
Decrease Reflected in Expense
Ratio due to Expense
Reimbursements 0.07%(a) 0.06% 0.05% 0.07%(a)
</TABLE>
- ------------------------
(a) Annualized
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Treasury Money Market Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended as a no-load, diversified, open-end
management investment company which was organized as a trust under the laws of
the State of New York. The Portfolio's investment objective is to provide
current income, maintain a high level of liquidity and preserve capital. 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 preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual amounts could differ from
those estimates. 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 on a straight-line basis
over a five-year period from the commencement of operations.
21
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
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, 1996, this
fee amounted to $351,520.
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 provided 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
Administration 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 was applied each day to the net assets of the Portfolio. For the
period from November 1, 1995, through December 28, 1995, Signature's fee
for these services amounted to $3,132.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged would be equal to the Portfolio's proportionate share
of a complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios subject to this agreement (the "Master
Portfolios") and 0.01% on the aggregate average daily net assets of the
Master Portfolios in excess of $7 billion. The portion of this charge
payable by the Portfolio is determined by the proportionate share its net
assets bear to the total net assets of The Pierpont Funds, The JPM
Institutional Funds, The JPM Advisor Funds and the Master Portfolios. For
the period from December 29, 1995, through April 30, 1996, Signature's fee
for these services amounted to $15,968.
c) Until August 31, 1995, the Portfolio had a Financial and Fund Accounting
Services Agreement ("Services Agreement") with Morgan under which Morgan
may receive a fee, based on the percentage described below, for overseeing
certain aspects of the administration and operation of the Portfolio and
was also designed to provide an expense limit for certain expenses of the
Portfolio. This fee was calculated exclusive of the advisory fee, custody
expenses, fund services fee and amortization of organization expenses at
0.03% of the Portfolio's average daily net assets. From September 1, 1995,
until December 28, 1995, an interim agreement between the Portfolio and
Morgan provided for the continuation of the oversight functions that were
outlined under the Services Agreement and that Morgan should bear all of
its expenses incurred in connection with these services.
Effective December 29, 1995, the Portfolio entered into an Administrative
Services Agreement (the "Agreement") with Morgan under which Morgan is
responsible for overseeing certain aspects of the administration and
operation of the Portfolio. Under the Agreement, the Portfolio has agreed
22
<PAGE>
THE TREASURY MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
to pay Morgan a fee equal to its proportionate share of an annual
complex-wide charge. This charge is calculated daily based on the
aggregate net assets of the Master Portfolios in accordance with the
following annual schedule: 0.06% on the first $7 billion of the Master
Portfolios' aggregate average daily net assets and 0.03% of the aggregate
average daily net assets in excess of $7 billion. The portion of this
charge payable by the Portfolio is determined by the proportionate share
that the Portfolio's net assets bear to the net assets of the Master
Portfolios and other investors in the Master Portfolios for which Morgan
provides similar services. For the period from December 29, 1995 through
April 30, 1996, the fee for these services amounted to $30,418.
In addition, Morgan has 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
February 28, 1997. For the six months ended April 30, 1996, Morgan has
agreed to reimburse the Portfolio $118,535 for expenses under this
agreement.
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 $9,660 for the six months ended April 30, 1996.
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 the
Master Portfolios. The Trustees' Fees and Expenses shown in the financial
statements represents the Portfolio's allocated portion of the total fees
and expenses. The Trustee who serves as Chairman and Chief Executive
Officer of the Portfolio 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 $1,200.
23
<PAGE>
THE PIERPONT MONEY MARKET FUND
THE PIERPONT TAX EXEMPT MONEY MARKET FUND
THE PIERPONT TREASURY MONEY MARKET FUND
THE PIERPONT SHORT TERM BOND FUND
THE PIERPONT BOND 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 EUROPEAN EQUITY FUND
THE PIERPONT JAPAN EQUITY FUND
THE PIERPONT INTERNATIONAL EQUITY FUND
THE PIERPONT ASIA GROWTH FUND
THE PIERPONT EMERGING MARKETS EQUITY FUND
FOR MORE INFORMATION ON HOW THE PIERPONT FAMILY OF FUNDS CAN HELP YOU PLAN FOR
YOUR FUTURE, CALL J.P. MORGAN FUNDS SERVICES AT (800) 521-5411.
THE PIERPONT TREASURY MONEY MARKET FUND
SEMI-ANNUAL REPORT
APRIL 30, 1996
